Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
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 | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 62,272,305 |
Statements of Condition
Statements of Condition - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
ASSETS | |||
Cash and due from banks | $ 245 | $ 982 | |
Interest-bearing deposits | 2 | 2 | |
Securities purchased under agreements to resell | 6,250 | 6,775 | |
Federal funds sold | 4,635 | 2,270 | |
Investment securities | |||
Trading securities (Note 3) | 4,077 | 4,047 | |
Available-for-sale securities (Note 4) | 22,931 | 20,988 | |
Held-to-maturity securities (fair value of $5,051 and $6,142) (Note 5) | 4,956 | 6,085 | |
Total investment securities | 31,964 | 31,120 | |
Advances (includes $2 and $8 at fair value under the fair value option) (Note 7) | 125,828 | 89,173 | |
Mortgage loans held for portfolio, net of allowance for credit losses of $2 and $1 (Notes 8 and 9) | 6,792 | 6,755 | |
Accrued interest receivable | 187 | 143 | |
Premises, software, and equipment, net | 27 | 25 | |
Derivative assets, net (Note 10) | 109 | 94 | |
Other assets | 35 | 35 | |
TOTAL ASSETS | 176,074 | 137,374 | |
LIABILITIES | |||
Interest-bearing | 916 | 924 | |
Non-interest-bearing | 117 | 186 | |
Total deposits | 1,033 | 1,110 | |
Consolidated obligations (Note 11) | |||
Discount notes | 84,481 | 98,990 | |
Bonds (includes $0 and $15 at fair value under the fair value option) | 82,454 | 31,208 | |
Total consolidated obligations | 166,935 | 130,198 | |
Mandatorily redeemable capital stock (Note 12) | [1] | 675 | 103 |
Accrued interest payable | 181 | 119 | |
Affordable Housing Program payable | 104 | 62 | |
Derivative liabilities, net (Note 10) | 85 | 102 | |
Other liabilities | 56 | 55 | |
TOTAL LIABILITIES | 169,069 | 131,749 | |
Commitments and contingencies (Note 14) | |||
CAPITAL (Note 12) | |||
Capital stock - Class B putable ($100 par value); 57 and 47 issued and outstanding shares | 5,658 | 4,714 | |
Additional capital from merger | 92 | 194 | |
Retained earnings | |||
Unrestricted | 1,094 | 700 | |
Restricted | 200 | 101 | |
Total retained earnings | 1,294 | 801 | |
Accumulated other comprehensive income | (39) | (84) | |
TOTAL CAPITAL | 7,005 | 5,625 | |
TOTAL LIABILITIES AND CAPITAL | $ 176,074 | $ 137,374 | |
[1] | At the Bank's election, the mandatorily redeemable capital stock may be redeemed prior to the expiration of the five year redemption period that commences on the date of the notice of redemption, or in the case of captive insurance company members, on the date of the membership termination. |
Statements of Condition (Parent
Statements of Condition (Parenthetical) - USD ($) shares in Millions, $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Held-to-Maturity Securities, Fair Value | $ 5,051 | $ 6,142 | |
Advances, Fair Value Option | [1] | 2 | 8 |
Loans and Leases Receivable, Allowance | $ 2 | $ 1 | |
Capital Stock - Class B Putable, Par Value | $ 100 | $ 100 | |
Consolidated Obligation Bonds [Member] | |||
Bonds, Fair Value Option | $ 0 | $ 15 | |
Common Class B [Member] | |||
Capital Stock - Class B Putable, Par Value | $ 100 | $ 100 | |
Capital Stock - Class B Putable, Issued Shares | 57 | 47 | |
Capital Stock - Class B Putable, Outstanding Shares | 57 | 47 | |
[1] | At September 30, 2016 and December 31, 2015, none of the advances were 90 days or more past due or had been placed on non-accrual status. |
Statements of Income
Statements of Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
INTEREST INCOME | ||||
Advances | $ 237 | $ 81 | $ 594 | $ 210 |
Prepayment fees on advances, net | 1 | 0 | 6 | 9 |
Interest-bearing deposits | 1 | 0 | 2 | 0 |
Securities purchased under agreements to resell | 4 | 1 | 13 | 4 |
Federal funds sold | 5 | 2 | 13 | 4 |
Trading securities | 13 | 9 | 39 | 27 |
Available-for-sale securities | 63 | 49 | 176 | 116 |
Held-to-maturity securities | 19 | 19 | 59 | 40 |
Mortgage loans held for portfolio | 56 | 62 | 176 | 182 |
Total interest income | 399 | 223 | 1,078 | 592 |
INTEREST EXPENSE | ||||
Consolidated obligations - Discount notes | 98 | 22 | 320 | 52 |
Consolidated obligations - Bonds | 177 | 112 | 428 | 302 |
Deposits | 1 | 0 | 1 | 0 |
Mandatorily redeemable capital stock | 6 | 1 | 15 | 2 |
Total interest expense | 282 | 135 | 764 | 356 |
NET INTEREST INCOME | 117 | 88 | 314 | 236 |
Provision (reversal) for credit losses on mortgage loans | 1 | 1 | 2 | 2 |
NET INTEREST INCOME AFTER PROVISION (REVERSAL) FOR CREDIT LOSSES | 116 | 87 | 312 | 234 |
OTHER INCOME (LOSS) | ||||
Net gains (losses) on trading securities | (2) | 17 | 51 | 9 |
Net gains (losses) on derivatives and hedging activities | (3) | (43) | (76) | (39) |
Gains on litigation settlements, net | 0 | 12 | 337 | 12 |
Other, net | 0 | 2 | 7 | 3 |
Total other income (loss) | (5) | (12) | 319 | (15) |
OTHER EXPENSE | ||||
Compensation and benefits | 13 | 12 | 39 | 34 |
Contractual services | 1 | 4 | 7 | 9 |
Professional fees | 4 | 4 | 8 | 6 |
Merger related expenses | 0 | 3 | 0 | 38 |
Other operating expenses | 5 | 4 | 14 | 10 |
Federal Housing Finance Agency | 2 | 2 | 6 | 5 |
Office of Finance | 2 | 2 | 5 | 4 |
Other, net | 1 | 1 | 3 | 2 |
Total other expense | 28 | 32 | 82 | 108 |
NET INCOME BEFORE ASSESSMENTS | 83 | 43 | 549 | 111 |
Affordable Housing Program assessments | 9 | 4 | 56 | 11 |
NET INCOME | $ 74 | $ 39 | $ 493 | $ 100 |
Statements of Comprehensive Inc
Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 74 | $ 39 | $ 493 | $ 100 |
Other comprehensive income (loss) | ||||
Unrealized gains (losses) | 46 | (120) | 45 | (122) |
Pension and postretirement benefits | 0 | (1) | 0 | 0 |
Total other comprehensive income (loss) | 46 | (121) | 45 | (122) |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ 120 | $ (82) | $ 538 | $ (22) |
Statements of Capital
Statements of Capital - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
BALANCE | $ 5,625 | $ 4,312 | ||
Proceeds from issuance of capital stock | 4,792 | 2,234 | ||
Capital stock issued from merger | 0 | 894 | ||
Repurchases/redemptions of capital stock | (3,116) | (2,546) | ||
Net shares reclassified (to) from mandatorily redeemable capital stock | $ (1) | $ (14) | (732) | 75 |
Additional capital from merger | 246 | |||
Total Comprehensive Income | 120 | (82) | 538 | (22) |
Cash dividends on capital stock | (102) | (75) | ||
BALANCE | 7,005 | 5,118 | 7,005 | 5,118 |
Common Stock [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
BALANCE | $ 4,714 | $ 3,469 | ||
BALANCE (shares) | 47 | 35 | ||
Proceeds from issuance of capital stock | $ 4,792 | $ 2,234 | ||
Proceeds from issuance of capital stock (shares) | 48 | 22 | ||
Capital stock issued from merger | $ 894 | |||
Capital stock issued from merger (shares) | 9 | |||
Repurchases/redemptions of capital stock | $ (3,116) | $ (2,546) | ||
Repurchases/redemptions of capital stock (shares) | (31) | (25) | ||
Net shares reclassified (to) from mandatorily redeemable capital stock | $ (732) | $ (75) | ||
Net shares reclassified (to) from mandatorily redeemable capital stock (shares) | (7) | (1) | ||
BALANCE | $ 5,658 | $ 4,126 | $ 5,658 | $ 4,126 |
BALANCE (shares) | 57 | 42 | 57 | 42 |
Additional Capital from Merger [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
BALANCE | $ 194 | $ 0 | ||
Additional capital from merger | 246 | |||
Cash dividends on capital stock | (102) | (25) | ||
BALANCE | $ 92 | $ 221 | 92 | 221 |
Retained Earnings, Unrestricted [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
BALANCE | 700 | 645 | ||
Total Comprehensive Income | 394 | 80 | ||
Cash dividends on capital stock | 0 | (50) | ||
BALANCE | 1,094 | 675 | 1,094 | 675 |
Retained Earnings, Restricted [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
BALANCE | 101 | 75 | ||
Total Comprehensive Income | 99 | 20 | ||
BALANCE | 200 | 95 | 200 | 95 |
Retained Earnings [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
BALANCE | 801 | 720 | ||
Total Comprehensive Income | 493 | 100 | ||
Cash dividends on capital stock | 0 | (50) | ||
BALANCE | 1,294 | 770 | 1,294 | 770 |
Accumulated Other Comprehensive Income [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
BALANCE | (84) | 123 | ||
Total Comprehensive Income | 45 | (122) | ||
BALANCE | (39) | 1 | (39) | 1 |
Common Class B [Member] | Common Stock [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
BALANCE | $ 4,714 | $ 3,469 | ||
BALANCE (shares) | 47 | 35 | ||
Proceeds from issuance of capital stock | $ 4,792 | $ 2,234 | ||
Proceeds from issuance of capital stock (shares) | 48 | 22 | ||
Capital stock issued from merger | $ 863 | |||
Capital stock issued from merger (shares) | 9 | |||
Repurchases/redemptions of capital stock | $ (3,116) | $ (2,515) | ||
Repurchases/redemptions of capital stock (shares) | (31) | (25) | ||
Net shares reclassified (to) from mandatorily redeemable capital stock | $ (732) | $ 75 | ||
Net shares reclassified (to) from mandatorily redeemable capital stock (shares) | (7) | 1 | ||
BALANCE | $ 5,658 | $ 4,126 | $ 5,658 | $ 4,126 |
BALANCE (shares) | 57 | 42 | 57 | 42 |
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 | |||
Capital stock issued from merger (shares) | 0 | |||
Repurchases/redemptions of capital stock | $ 0 | $ (31) | ||
Repurchases/redemptions of capital stock (shares) | 0 | 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 Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
OPERATING ACTIVITIES | ||
Net income | $ 493 | $ 100 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 37 | 25 |
Net (gains) losses on trading securities | (51) | (9) |
Net change in derivatives and hedging activities | 5 | 0 |
Other adjustments | (5) | 1 |
Net change in: | ||
Accrued interest receivable | (64) | (10) |
Other assets | (1) | (4) |
Accrued interest payable | 62 | 21 |
Other liabilities | 42 | (9) |
Total adjustments | 25 | 15 |
Net cash provided by (used in) operating activities | 518 | 115 |
Net change in: | ||
Interest-bearing deposits | (366) | (155) |
Securities purchased under agreements to resell | 525 | 91 |
Federal funds sold | (2,365) | (320) |
Premises, software, and equipment | (7) | (5) |
Cash transferred for merger | 0 | 2,341 |
Trading securities | ||
Proceeds from maturities of long-term | 1,617 | 519 |
Purchases of long-term | (1,597) | 0 |
Available-for-sale securities | ||
Proceeds from sales and maturities of long-term | 1,902 | 1,316 |
Purchases of long-term | (3,465) | (1,108) |
Held-to-maturity securities | ||
Proceeds from sales and maturities of long-term | 1,178 | 724 |
Purchases of long-term | (64) | (89) |
Advances | ||
Principal collected | 134,568 | 88,354 |
Originated | (171,179) | (88,455) |
Mortgage loans held for portfolio | ||
Principal collected | 931 | 931 |
Originated or purchased | (988) | (652) |
Proceeds from sales of foreclosed assets | 10 | 10 |
Net cash provided by (used in) investing activities | (39,300) | 3,502 |
FINANCING ACTIVITIES | ||
Net change in deposits | (77) | 123 |
Net payments on derivative contracts with financing elements | (4) | (6) |
Net proceeds from issuance of consolidated obligations | ||
Discount notes | 209,409 | 198,088 |
Bonds | 77,918 | 15,564 |
Payments for maturing and retiring consolidated obligations | ||
Discount notes | (223,948) | (191,074) |
Bonds | (26,667) | (25,087) |
Proceeds from issuance of capital stock | 4,792 | 2,234 |
Payments for repurchases/redemptions of capital stock | (3,116) | (2,546) |
Net payments for repurchases/redemptions of mandatorily redeemable capital stock | (160) | (568) |
Cash dividends paid | (102) | (75) |
Net cash provided by (used in) financing activities | 38,045 | (3,347) |
Net increase (decrease) in cash and due from banks | (737) | 270 |
Cash and due from banks at beginning of the period | 982 | 495 |
Cash and due from banks at end of the period | 245 | 765 |
SUPPLEMENTAL DISCLOSURES | ||
Interest paid | 1,200 | 798 |
Affordable Housing Program payments | 14 | 9 |
Capitalized interest on reverse mortgage securities | 20 | 11 |
Mortgage loan charge-offs | 2 | 5 |
Transfers of mortgage loans to real estate owned | 6 | 6 |
Capital stock reclassified to (from) mandatorily redeemable capital stock, net | 732 | (75) |
Capital stock issued from merger | 0 | 894 |
Advances | 0 | 9,191 |
Mortgage loans held for portfolio | 0 | 615 |
Accrued interest receivable | 0 | 47 |
Premises, software, and equipment | 0 | 3 |
Derivative assets | 0 | 40 |
Other assets | 0 | 22 |
Deposits | 0 | (371) |
Mandatorily redeemable capital stock | 0 | (725) |
Accrued interest payable | 0 | (38) |
Affordable Housing Program payable | 0 | (17) |
Derivative liabilities | 0 | (74) |
Other liabilities | 0 | (37) |
Consolidated Obligation Discount Notes [Member] | ||
SUPPLEMENTAL DISCLOSURES | ||
Consolidated obligations | 0 | (12,449) |
Consolidated Obligation Bonds [Member] | ||
SUPPLEMENTAL DISCLOSURES | ||
Consolidated obligations | 0 | (13,613) |
Trading Securities [Member] | ||
SUPPLEMENTAL DISCLOSURES | ||
Investments | 0 | 551 |
Available-for-sale Securities [Member] | ||
SUPPLEMENTAL DISCLOSURES | ||
Investments | 0 | 9,825 |
Held-to-maturity Securities [Member] | ||
SUPPLEMENTAL DISCLOSURES | ||
Investments | $ 0 | $ 5,829 |
Background Information
Background Information | 9 Months Ended |
Sep. 30, 2016 | |
Background Information [Abstract] | |
Nature of Operations [Text Block] | Background Information The Federal Home Loan Bank of Des Moines (the 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 source of funding to its member institutions and eligible housing associates 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. 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, subject to a minimum and maximum amount, 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 and former members own all of the outstanding capital stock (including mandatorily redeemable capital stock) of the Bank. Former members own 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. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
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, 2015 , which are contained in the Bank's 2015 Annual Report on Form 10-K filed with the SEC on March 21, 2016 ( 2015 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, 2016 . On May 31, 2015, the Bank completed the merger (the Merger) with the Federal Home Loan Bank of Seattle (Seattle Bank). The Merger had a significant impact on all aspects of the Bank's financial condition, results of operations, and cash flows. As a result, income statement results for the current period are not directly comparable to results prior to the Merger. The following unaudited pro forma information 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 millions): Nine Months Ended September 30, 2015 Interest income $ 707 Net income $ 110 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. CHANGE IN ACCOUNTING PRINCIPLE On January 1, 2016, the Bank retrospectively adopted Accounting Standards Codification Update 2015-03, Simplifying the Presentation of Debt Issuance Costs issued by the Financial Accounting Standards Board (FASB) on April 7, 2015. As a result, $7 million of unamortized concessions included in “Other assets” at December 31, 2015 were reclassified as a reduction in the balance of the corresponding consolidated obligations. The reclassification resulted in a decrease of $4 million in “Consolidated obligation discount notes” and of $3 million in “Consolidated obligation bonds” at December 31, 2015. Accordingly, the Bank’s total assets and total liabilities each decreased by $7 million at December 31, 2015. The adoption of this guidance did not have any effect on the Bank’s results of operations or cash flows. See “Note 2 - Recently Adopted and Issued Accounting Guidance” for discussion on this guidance. RECLASSIFICATIONS Certain amounts in the Bank's 2015 financial statements and footnotes have been reclassified to conform to the presentation for the three and nine months ended September 30, 2016 . These amounts were not deemed to be material. SIGNIFICANT ACCOUNTING POLICIES There have been no material changes to the Bank's significant accounting policies during the nine months ended September 30, 2016 , with the exception of one policy noted below. Descriptions of all significant accounting policies are included in "Note 1 - Summary of Significant Accounting Policies" in the 2015 Form 10-K. Concessions . The Bank pays concessions to dealers in connection with the issuance of certain consolidated obligations. The Office of Finance prorates the amount of the concession to each FHLBank based upon the percentage of the debt issued that is attributed to that FHLBank. Concessions paid on consolidated obligations designated under the fair value option are expensed as incurred and recorded in other expense. Concessions paid on consolidated obligations not designated under the fair value option are deferred and amortized over the contractual life of the consolidated obligations using the level-yield method. Unamortized concessions are included as a direct deduction from the carrying amount of “Consolidated obligation discount notes” or “Consolidated obligation bonds” in the Statements of Condition and the amortization of those concessions is included in consolidated obligation interest expense. |
Recently Adopted and Issued Acc
Recently Adopted and Issued Accounting Guidance | 9 Months Ended |
Sep. 30, 2016 | |
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 Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships On March 10, 2016, the FASB issued amendments to clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under GAAP does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The amendments provide entities with the option to apply the guidance using either a prospective approach or a modified retrospective approach. The guidance would have become effective for the Bank in 2017 but the guidance allowed early adoption. The Bank elected to early adopt this guidance prospectively on January 1, 2016. The adoption of this guidance did not have an effect on the Bank’s financial condition, results of operations, or cash flows. Simplifying the Accounting for Measurement-Period Adjustments On September 25, 2015, the FASB issued guidance to simplify the accounting for measurement-period adjustments recognized in a business combination. This guidance requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. It also requires that the acquirer present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. This guidance became effective for the Bank beginning on January 1, 2016 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. Cloud Computing Arrangements On April 15, 2015, the FASB issued amendments to clarify a customer's accounting for fees paid in a cloud computing arrangement. The amendments provide guidance to customers on determining whether a cloud computing arrangement includes a software license that should be accounted for as internal-use software. If the arrangement does not contain a software license, it would be accounted for as a service contract. This guidance became effective for the Bank beginning on January 1, 2016 and was adopted prospectively. The adoption of this guidance did not effect 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 became effective for the Bank beginning on January 1, 2016 and was adopted on a retrospective basis. The adoption of this guidance resulted in a reclassification of unamortized debt issuance costs from other assets to consolidated obligations on the Bank's Statement of Condition. The adoption of this guidance did not have a material effect on the Bank's financial condition, results of operations, or cash flows. Refer to "Note 1 — Basis of Presentation — Change in Accounting Principle" for additional details on this reclassification. 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 became effective for the Bank beginning on January 1, 2016. The adoption of this guidance did not have an effect on the Bank’s financial condition, results of operations, or cash flows. ISSUED ACCOUNTING GUIDANCE Classification of Certain Cash Receipts and Cash Payments On August 26, 2016, the FASB issued amendments to clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. This guidance is intended to reduce existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This guidance is effective for the Bank for interim and annual periods beginning on January 1, 2018, and early adoption is permitted. This guidance should be applied using a retrospective transition method to each period presented. The Bank is in the process of evaluating this guidance, but its effect on the Bank's cash flows is not expected to be material. Measurement of Credit Losses on Financial Instruments On June 16, 2016, the FASB issued amended guidance for the accounting of credit losses on financial instruments. The amendments require entities to measure expected credit losses based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The new guidance requires a financial asset, or a group of financial assets, measured at amortized cost to be presented at the net amount expected to be collected. The guidance also requires, among other things, the following: • The statement of income to reflect the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. • Entities to determine the allowance for credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (PCD assets) that are measured at amortized cost in a similar manner to other financial assets measured at amortized cost. The initial allowance for credit losses is required to be added to the purchase price of the assets acquired. • Entities to record credit losses relating to AFS debt securities through an allowance for credit losses. The amendments limit the allowance for credit losses to the amount by which fair value is below amortized cost. • Public entities to further disaggregate the current disclosure of credit quality indicators in relation to the amortized cost of financing receivables by the year of origination (i.e., vintage). This guidance is effective for the Bank for interim and annual periods beginning on January 1, 2020. Early application is permitted as of the interim and annual reporting periods beginning after December 15, 2018. This guidance should be applied using a modified-retrospective approach, through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. In addition, entities are required to use a prospective transition approach for PCD assets upon adoption and for debt securities for which an other-than-temporary impairment had been recognized before the effective date. The Bank is in the process of evaluating this guidance, and its effect on the Bank's financial condition, results of operations, and cash flows has not yet been determined. Contingent Put and Call Options in Debt Instruments On March 14, 2016, the FASB issued amendments to clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. The guidance requires entities to apply only the four-step decision sequence when assessing whether the economic characteristics and risks of call (put) options are clearly and closely related to the economic characteristics and risks of their debt hosts. Consequently, when a call (put) option is contingently exercisable, an entity does not have to assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks. This guidance becomes effective for the Bank for the interim and annual periods beginning on January 1, 2017, and early adoption is permitted. The guidance should be applied on a modified retrospective basis to existing debt instruments as of the beginning of the period for which the amendments are effective. The Bank is in the process of evaluating this guidance, but its effect on the Bank's financial condition, results of operations, or cash flows is not expected to be material. Leases On February 25, 2016, the FASB issued guidance which requires recognition of lease assets and lease liabilities on the statement of condition and disclosure of key information about leasing arrangements. Specifically, this guidance requires a lessee, of operating or finance leases, to recognize on the statement of condition a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and lease liabilities. Under previous GAAP, a lessee was not required to recognize lease assets and lease liabilities arising from operating leases on the statement of condition. While this guidance does not fundamentally change lessor accounting, some changes have been made to align that guidance with the lessee guidance and other areas within GAAP. The guidance becomes effective for the Bank for the interim and annual periods beginning on January 1, 2019, and early application is permitted. The guidance requires lessors and lessees to recognize and measure leases at the beginning of the earliest period presented in the financial statements using a modified retrospective approach. The Bank is in the process of evaluating this guidance, and its anticipated effect on the Bank's financial condition, results of operations, or cash flows has not yet been determined. Recognition and Measurement of Financial Assets and Financial Liabilities On January 5, 2016, FASB issued amended guidance on certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This guidance includes, but is not limited to, the following: • Requires equity investments (with certain exceptions) to be measured at fair value with changes in fair value recognized in net income. • Requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. • Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements. • Eliminates the requirement for public entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. The guidance becomes effective for the Bank for the interim and annual periods beginning on January 1, 2018, and early adoption is only permitted for certain provisions. The amendments, in general, should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the period of adoption. 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. 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 Bank for the annual period ending December 31, 2016 and for the annual and interim periods thereafter, and early application is permitted. 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 recognizing 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, and lease contracts. The guidance provides entities with the option of using either of the following adoption methods: a full retrospective method, retrospectively to each prior reporting period presented; or a modified retrospective method, retrospectively with the cumulative effect of initially applying this guidance recognized at the date of initial application. On August 12, 2015, the FASB issued an amendment to defer the effective date of this guidance issued in May 2014 by one year. In 2016, the FASB has issued additional amendments to clarify certain aspects of the new revenue guidance. However, these amendments do not change the core principle in the new revenue standard. This guidance is effective for the Bank for interim and annual periods beginning on January 1, 2018. Early application is permitted only as of the interim and annual reporting periods beginning after December 15, 2016. The Bank is in the process of evaluating this guidance, but its effect on the Bank's financial condition, results of operations, and cash flows is not expected to be material. |
Trading Securities
Trading Securities | 9 Months Ended |
Sep. 30, 2016 | |
Trading Securities [Abstract] | |
Trading Securities [Text Block] | Trading Securities MAJOR SECURITY TYPES Trading securities were as follows (dollars in millions): September 30, December 31, Non-mortgage-backed securities Other U.S. obligations 1 $ 229 $ 237 GSE and Tennessee Valley Authority obligations 3,086 3,077 Other 2 288 276 Total non-mortgage-backed securities 3,603 3,590 Mortgage-backed securities GSE multifamily 474 457 Total fair value $ 4,077 $ 4,047 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 nine months ended September 30, 2016 , the Bank recorded net holding losses of $2 million and net holding gains of $51 million on its trading securities compared to net holding gains of $17 million and $9 million for the same periods in 2015 . The Bank did not sell any trading securities during the three and nine months ended September 30, 2016 and 2015 . |
Available-for-Sale Securities
Available-for-Sale Securities | 9 Months Ended |
Sep. 30, 2016 | |
Available-for-sale Securities [Abstract] | |
Available-for-Sale Securities [Text Block] | Available-for-Sale Securities MAJOR SECURITY TYPES AFS securities we re as follows (dollars in millions): September 30, 2016 Amortized 1 Gross Gross Fair Value Non-mortgage-backed securities Other U.S. obligations 2 $ 3,720 $ 4 $ (21 ) $ 3,703 GSE and Tennessee Valley Authority obligations 1,494 10 (12 ) 1,492 State or local housing agency obligations 1,023 — (1 ) 1,022 Other 3 291 5 — 296 Total non-mortgage-backed securities 6,528 19 (34 ) 6,513 Mortgage-backed securities Other U.S. obligations single-family 2 3,509 3 (11 ) 3,501 GSE single-family 1,345 11 — 1,356 GSE multifamily 11,586 36 (61 ) 11,561 Total mortgage-backed securities 16,440 50 (72 ) 16,418 Total $ 22,968 $ 69 $ (106 ) $ 22,931 December 31, 2015 Amortized 1 Gross Gross Fair Value Non-mortgage-backed securities Other U.S. obligations 2 $ 4,010 $ 4 $ (29 ) $ 3,985 GSE and Tennessee Valley Authority obligations 2,124 14 (23 ) 2,115 State or local housing agency obligations 1,048 — (1 ) 1,047 Other 3 276 4 (2 ) 278 Total non-mortgage-backed securities 7,458 22 (55 ) 7,425 Mortgage-backed securities Other U.S. obligations single-family 2 2,284 — (14 ) 2,270 GSE single-family 1,593 13 (1 ) 1,605 GSE multifamily 9,735 36 (83 ) 9,688 Total mortgage-backed securities 13,612 49 (98 ) 13,563 Total $ 21,070 $ 71 $ (153 ) $ 20,988 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/or Private Export Funding Corporation (PEFCO) bonds. UNREALIZED LOSSES The following tables summarize 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 millions). In cases where the gross unrealized losses for an investment category are less than $1 million, the losses are not reported. September 30, 2016 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 1 $ 20 $ — $ 3,174 $ (21 ) $ 3,194 $ (21 ) GSE and Tennessee Valley Authority obligations — — 942 (12 ) 942 (12 ) State or local housing agency obligations 684 (1 ) 14 — 698 (1 ) Total non-mortgage-backed securities 704 (1 ) 4,130 (33 ) 4,834 (34 ) Mortgage-backed securities Other U.S. obligations single-family 1 1,242 (4 ) 1,122 (7 ) 2,364 (11 ) GSE single-family 152 — 26 — 178 — GSE multifamily 2,207 (5 ) 6,776 (56 ) 8,983 (61 ) Total mortgage-backed securities 3,601 (9 ) 7,924 (63 ) 11,525 (72 ) Total $ 4,305 $ (10 ) $ 12,054 $ (96 ) $ 16,359 $ (106 ) December 31, 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 1 $ 3,645 $ (29 ) $ — $ — $ 3,645 $ (29 ) GSE and Tennessee Valley Authority obligations 1,701 (23 ) — — 1,701 (23 ) State or local housing agency obligations 555 (1 ) 6 — 561 (1 ) Other 2 97 (2 ) — — 97 (2 ) Total non-mortgage-backed securities 5,998 (55 ) 6 — 6,004 (55 ) Mortgage-backed securities Other U.S. obligations single-family 1 2,270 (14 ) — — 2,270 (14 ) GSE single-family 277 (1 ) 33 — 310 (1 ) GSE multifamily 8,166 (66 ) 926 (17 ) 9,092 (83 ) Total mortgage-backed securities 10,713 (81 ) 959 (17 ) 11,672 (98 ) Total $ 16,711 $ (136 ) $ 965 $ (17 ) $ 17,676 $ (153 ) 1 Represents investment securities backed by the full faith and credit of the U.S. Government. 2 Consists of taxable municipal bonds and/or PEFCO bonds. 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 millions): September 30, 2016 December 31, 2015 Year of Contractual Maturity Amortized Fair Value Amortized Fair Value Non-mortgage-backed securities Due in one year or less $ 177 $ 178 $ 430 $ 431 Due after one year through five years 522 529 968 978 Due after five years through ten years 4,641 4,625 4,664 4,637 Due after ten years 1,188 1,181 1,396 1,379 Total non-mortgage-backed securities 6,528 6,513 7,458 7,425 Mortgage-backed securities 16,440 16,418 13,612 13,563 Total $ 22,968 $ 22,931 $ 21,070 $ 20,988 NET GAINS (LOSSES) FROM SALE OF AFS SECURITIES During the nine months ended September 30, 2016 , the Bank received $287 million in proceeds from the sale of AFS securities and recognized gains of less than $1 million. During the three months ended September 30, 2016 and the three and nine months ended September 30, 2015, the Bank did no t sell any AFS securities. PREPAYMENT FEES Prepayment fees on AFS securities are recorded as interest income in the Statements of Income. During the three and nine months ended September 30, 2016 , AFS MBS were prepaid and the Bank received $2 million and $5 million in prepayment fees, which were offset in part by fair value hedging adjustments and discount amortization combined of $1 million and $2 million . During both the three and nine months ended September 30, 2015 , an AFS MBS was prepaid and the Bank received a $3 million prepayment fee, which was offset in part by fair value hedging adjustments and premium amortization combined of $1 million . |
Held-to-Maturity Securities
Held-to-Maturity Securities | 9 Months Ended |
Sep. 30, 2016 | |
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 millions): September 30, 2016 Amortized 1 Gross Gross Fair Value Non-mortgage-backed securities GSE and Tennessee Valley Authority obligations $ 398 $ 92 $ — $ 490 State or local housing agency obligations 691 5 (4 ) 692 Total non-mortgage-backed securities 1,089 97 (4 ) 1,182 Mortgage-backed securities Other U.S. obligations single-family 2 30 — — 30 Other U.S. obligations commercial 2 4 — — 4 GSE single-family 3,816 11 (8 ) 3,819 Private-label residential 17 — (1 ) 16 Total mortgage-backed securities 3,867 11 (9 ) 3,869 Total $ 4,956 $ 108 $ (13 ) $ 5,051 December 31, 2015 Amortized 1 Gross Gross Fair Value Non-mortgage-backed securities GSE and Tennessee Valley Authority obligations $ 401 $ 57 $ (2 ) $ 456 State or local housing agency obligations 956 9 — 965 Total non-mortgage-backed securities 1,357 66 (2 ) 1,421 Mortgage-backed securities Other U.S. obligations single-family 2 47 — — 47 Other U.S. obligations commercial 2 6 — — 6 GSE single-family 4,655 9 (15 ) 4,649 Private-label residential 20 — (1 ) 19 Total mortgage-backed securities 4,728 9 (16 ) 4,721 Total $ 6,085 $ 75 $ (18 ) $ 6,142 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 millions). In cases where the gross unrealized losses for an investment category are less than $1 million, the losses are not reported. September 30, 2016 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Non-mortgage-backed securities State or local housing agency obligations $ 279 $ (4 ) $ 5 $ — $ 284 $ (4 ) Total non-mortgage-backed securities 279 (4 ) 5 — 284 (4 ) Mortgage-backed securities Other U.S. obligations single-family 1 29 — — — 29 — Other U.S. obligations commercial 1 1 — 2 — 3 — GSE single-family 2,105 (6 ) 493 (2 ) 2,598 (8 ) Private-label residential — — 11 (1 ) 11 (1 ) Total mortgage-backed securities 2,135 (6 ) 506 (3 ) 2,641 (9 ) Total $ 2,414 $ (10 ) $ 511 $ (3 ) $ 2,925 $ (13 ) December 31, 2015 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Non-mortgage backed securities GSE and Tennessee Valley Authority obligations $ 96 $ (2 ) $ — $ — $ 96 $ (2 ) State or local housing agency obligations 93 — — — 93 — Total non-mortgage-backed securities 189 (2 ) — — 189 (2 ) Mortgage-backed securities Other U.S. obligations single-family 1 40 — — — 40 — Other U.S. obligations commercial 1 5 — — — 5 — GSE single-family 3,052 (15 ) 20 — 3,072 (15 ) Private-label residential — — 13 (1 ) 13 (1 ) Total mortgage-backed securities 3,097 (15 ) 33 (1 ) 3,130 (16 ) Total $ 3,286 $ (17 ) $ 33 $ (1 ) $ 3,319 $ (18 ) 1 Represents investment securities backed by the full faith and credit of the U.S. Government. 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 millions): September 30, 2016 December 31, 2015 Year of Contractual Maturity Amortized Fair Value Amortized Fair Value Non-mortgage-backed securities Due in one year or less $ 11 $ 11 $ 18 $ 18 Due after one year through five years 62 62 131 131 Due after five years through ten years 368 418 409 440 Due after ten years 648 691 799 832 Total non-mortgage-backed securities 1,089 1,182 1,357 1,421 Mortgage-backed securities 3,867 3,869 4,728 4,721 Total $ 4,956 $ 5,051 $ 6,085 $ 6,142 |
Other-Than-Temporary Impairment
Other-Than-Temporary Impairment | 9 Months Ended |
Sep. 30, 2016 | |
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. To ensure consistency in the determination of OTTI, an OTTI Governance Committee, comprised of representation from all FHLBanks, is responsible for reviewing and approving the key modeling assumptions, inputs, and methodologies used by the designated FHLBanks when generating the cash flow projections. For a description of these models, refer to "Item 8. Financial Statements and Supplementary Data - Note 8 - Other-than-Temporary Impairment" in the Bank's 2015 Form 10-K. The FHLBanks' OTTI Governance Committee developed a short-term housing price forecast with projected changes ranging from a decrease of one percent to an increase of ten percent over the twelve month period beginning July 1, 2016 . For the vast majority of markets, the projected short-term housing price changes range from an increase of three percent to an increase of six 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 September 30, 2016 , 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 September 30, 2016 . 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 September 30, 2016 : • Other U.S. obligations and GSE and Tennessee Valley Authority obligations. The unrealized losses were due primarily to changes in interest rates and credit spreads, and not to a significant deterioration in the fundamental credit quality of the obligations. 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 September 30, 2016 . • 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 September 30, 2016 . |
Advances
Advances | 9 Months Ended |
Sep. 30, 2016 | |
Advances [Abstract] | |
Advances [Text Block] | Advances CONTRACTUAL MATURITY The following table summarizes the Bank's advances outstanding by contractual maturity (dollars in millions): September 30, 2016 December 31, 2015 Year of Contractual Maturity Amount Weighted Amount Weighted Overdrawn demand deposit accounts $ 5 3.45 % $ 1 3.34 % Due in one year or less 20,759 0.86 18,967 0.77 Due after one year through two years 30,944 1.02 8,608 1.48 Due after two years through three years 23,587 0.88 18,517 0.93 Due after three years through four years 6,862 1.10 17,439 0.60 Due after four years through five years 28,837 0.82 16,521 0.74 Thereafter 14,528 0.96 8,858 1.36 Total par value 125,522 0.92 % 88,911 0.89 % Premiums 94 128 Discounts (7 ) (9 ) Fair value hedging adjustments 219 143 Total $ 125,828 $ 89,173 The following table summarizes all advances at September 30, 2016 and December 31, 2015 , by year of contractual maturity or next call date for callable advances, and by year of contractual maturity or next put date for putable advances (dollars in millions): Year of Contractual Maturity Year of Contractual Maturity or Next Put Date September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Overdrawn demand deposit accounts $ 5 $ 1 $ 5 $ 1 Due in one year or less 95,329 73,242 22,179 21,156 Due after one year through two years 10,922 4,513 29,756 7,549 Due after two years through three years 9,437 4,377 23,547 17,576 Due after three years through four years 2,446 2,337 6,862 17,439 Due after four years through five years 5,329 1,818 28,673 16,521 Thereafter 2,054 2,623 14,500 8,669 Total par value $ 125,522 $ 88,911 $ 125,522 $ 88,911 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). At September 30, 2016 and December 31, 2015 , the Bank had callable advances outstanding totaling $78.6 billion and $54.8 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 replacement funding at the prevailing market rate. Generally, put options are exercised when interest rates increase. At September 30, 2016 and December 31, 2015 , t he Bank had putable advances outstanding totaling $2.1 billion and $2.6 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 millions): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Prepayment fee income $ 2 $ — $ 11 $ 14 Fair value hedging adjustments 1 (1 ) — (5 ) (5 ) Prepayment fees on advances, net $ 1 $ — $ 6 $ 9 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 9 — Allowance for Credit Losses." |
Mortgage Loans Held for Portfol
Mortgage Loans Held for Portfolio | 9 Months Ended |
Sep. 30, 2016 | |
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 Mortgage Purchase Program (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. The following tables present information on the Bank's mortgage loans held for portfolio (dollars in millions): September 30, 2016 MPF MPP Total Fixed rate, long-term single-family mortgage loans $ 5,097 $ 420 $ 5,517 Fixed rate, medium-term 1 single-family mortgage loans 1,172 8 1,180 Total unpaid principal balance 6,269 428 6,697 Premiums 81 14 95 Discounts (8 ) (1 ) (9 ) Basis adjustments from mortgage loan commitments 11 — 11 Total mortgage loans held for portfolio 6,353 441 6,794 Allowance for credit losses (2 ) — (2 ) Total mortgage loans held for portfolio, net $ 6,351 $ 441 $ 6,792 December 31, 2015 MPF MPP Total Fixed rate, long-term single-family mortgage loans $ 4,884 $ 500 $ 5,384 Fixed rate, medium-term 1 single-family mortgage loans 1,265 14 1,279 Total unpaid principal balance 6,149 514 6,663 Premiums 76 18 94 Discounts (9 ) (1 ) (10 ) Basis adjustments from mortgage loan commitments 9 — 9 Total mortgage loans held for portfolio 6,225 531 6,756 Allowance for credit losses (1 ) — (1 ) Total mortgage loans held for portfolio, net $ 6,224 $ 531 $ 6,755 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 millions): September 30, 2016 MPF MPP Total Conventional mortgage loans $ 5,747 $ 384 $ 6,131 Government-insured mortgage loans 522 44 566 Total unpaid principal balance $ 6,269 $ 428 $ 6,697 December 31, 2015 MPF MPP Total Conventional mortgage loans $ 5,602 $ 464 $ 6,066 Government-insured mortgage loans 547 50 597 Total unpaid principal balance $ 6,149 $ 514 $ 6,663 For information related to the Bank's credit risk exposure on mortgage loans held for portfolio, refer to "Note 9 — Allowance for Credit Losses." |
Allowance for Credit Losses
Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2016 | |
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, MPF conventional mortgage loans held for portfolio, MPP 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 mortgage-backed securities (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 September 30, 2016 and December 31, 2015 , 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 September 30, 2016 and December 31, 2015 , 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 nine months ended September 30, 2016 and 2015 . 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 September 30, 2016 and December 31, 2015 . 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 in both the MPF and MPP portfolios 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 September 30, 2016 and December 31, 2015 . 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. MPF CONVENTIONAL MORTGAGE LOANS The Bank's management of credit risk in the MPF program involves several layers of legal loss protection that are defined in agreements among the Bank and its participating PFIs. For 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 CONVENTIONAL MORTGAGE LOANS For 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 and MPP mortgage loan portfolios at the balance sheet date. The measurement of the Bank's MPF and MPP 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, and (iii) estimating additional credit losses in the conventional mortgage loan portfolio. 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 primarily on the following factors: (i) current loan delinquencies, (ii) loans migrating to collateral-dependent status, and (iii) actual historical loss severities. 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 loan modification plans 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, including but not limited to, the occurrence of foreclosure or when a loan is deemed collateral-dependent. The Bank charges-off the portion of the outstanding conventional mortgage loan balance in excess of the fair value of the underlying collateral, which is determined using property values, less selling costs and expected proceeds from PMI. 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. These additional factors include, but are not limited to certain quantifiable economic factors, such as unemployment rates and home prices impacting housing markets. The following table summarizes the recorded investment and allowance for credit losses of the Bank's conventional mortgage loan portfolio by impairment methodology (dollars in millions): MPF MPP 1 Total Recorded investment, September 30, 2016 2 Collectively evaluated for impairment $ 5,818 $ 372 $ 6,190 Individually evaluated for impairment, without a related allowance 30 25 55 Total recorded investment $ 5,848 $ 397 $ 6,245 Recorded investment, December 31, 2015 2 Collectively evaluated for impairment $ 5,659 $ 449 $ 6,108 Individually evaluated for impairment, without a related allowance 37 31 68 Total recorded investment $ 5,696 $ 480 $ 6,176 Allowance for credit losses, September 30, 2016 Collectively evaluated for impairment $ 2 $ — $ 2 Allowance for credit losses, December 31, 2015 Collectively evaluated for impairment $ 1 $ — $ 1 1 The allowance for credit losses on MPP loans was less than $1 million at September 30, 2016 and December 31, 2015. 2 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 millions): September 30, 2016 MPF MPP Conventional Government Conventional Government Total Past due 30 - 59 days $ 52 $ 19 $ 12 $ 4 $ 87 Past due 60 - 89 days 13 8 4 2 27 Past due 90 - 179 days 10 5 3 1 19 Past due 180 days or more 23 4 12 2 41 Total past due mortgage loans 98 36 31 9 174 Total current mortgage loans 5,750 500 366 38 6,654 Total recorded investment of mortgage loans 1 $ 5,848 $ 536 $ 397 $ 47 $ 6,828 In process of foreclosure (included above) 2 $ 16 $ 2 $ 7 $ — $ 25 Serious delinquency rate 3 1 % 2 % 4 % 7 % 1 % Past due 90 days or more and still accruing interest 4 $ — $ 9 $ — $ 3 $ 12 Non-accrual mortgage loans 5 $ 37 $ — $ 26 $ — $ 63 December 31, 2015 MPF MPP Conventional Government Conventional Government Total Past due 30 - 59 days $ 57 $ 21 $ 13 $ 5 $ 96 Past due 60 - 89 days 16 7 4 2 29 Past due 90 - 179 days 12 5 3 1 21 Past due 180 days or more 30 5 16 3 54 Total past due mortgage loans 115 38 36 11 200 Total current mortgage loans 5,581 524 444 42 6,591 Total recorded investment of mortgage loans 1 $ 5,696 $ 562 $ 480 $ 53 $ 6,791 In process of foreclosure (included above) 2 $ 19 $ 4 $ 9 $ — $ 32 Serious delinquency rate 3 1 % 2 % 4 % 8 % 1 % Past due 90 days or more and still accruing interest 4 $ — $ 10 $ — $ 4 $ 14 Non-accrual mortgage loans 5 $ 46 $ — $ 32 $ — $ 78 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 Bank did no t recognize any interest income on impaired loans during the three and nine months ended September 30, 2016 and 2015 . The following table summarizes the average recorded investment of the Bank's individually evaluated impaired loans (dollars in millions): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Impaired loans without an allowance Conventional MPF Loans $ 32 $ 41 $ 34 $ 45 Conventional MPP Loans 25 33 27 15 Total $ 57 $ 74 $ 61 $ 60 REAL ESTATE OWNED At September 30, 2016 and December 31, 2015 , the Bank had $5 million and $7 million of real estate owned (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 September 30, 2016 and December 31, 2015 . OFF-BALANCE SHEET CREDIT EXPOSURES At September 30, 2016 and December 31, 2015 , 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 14 — Commitments and Contingencies." |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 9 Months Ended |
Sep. 30, 2016 | |
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 (fair value hedge); or • as an economic hedge to manage certain defined risks in its Statements of Condition. These hedges are primarily used to (i) manage mismatches between the coupon features of the Bank's assets and liabilities and offset prepayment risk in certain assets, or (ii) mitigate the income statement volatility that occurs when financial instruments are recorded at fair value and hedge accounting is not permitted by accounting guidance (economic hedge). 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 (uncleared 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 monthly) 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 millions): September 30, 2016 December 31, 2015 Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments (fair value hedges) Interest rate swaps $ 49,271 $ 206 $ 993 $ 37,526 $ 134 $ 635 Derivatives not designated as hedging instruments (economic hedges) Interest rate swaps 1,411 22 119 1,456 21 70 Interest rate swaptions — — — 200 — — Forward settlement agreements (TBAs) 204 — 1 45 — — Mortgage delivery commitments 211 1 — 51 — — Total derivatives not designated as hedging instruments 1,826 23 120 1,752 21 70 Total derivatives before netting and collateral adjustments $ 51,097 229 1,113 $ 39,278 155 705 Netting adjustments and cash collateral 1 (120 ) (1,028 ) (61 ) (603 ) Total derivative assets and derivative liabilities $ 109 $ 85 $ 94 $ 102 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 $0.9 billion and $0.5 billion at September 30, 2016 and December 31, 2015. At September 30, 2016 and December 31, 2015, 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 millions): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Derivatives designated as hedging instruments (fair value hedges) Interest rate swaps $ (7 ) $ (6 ) $ (16 ) $ 1 Derivatives not designated as hedging instruments (economic hedges) Interest rate swaps 10 (32 ) (45 ) (24 ) Forward settlement agreements (TBAs) (2 ) (1 ) (5 ) (1 ) Mortgage delivery commitments 1 1 4 1 Net interest settlements (5 ) (5 ) (14 ) (16 ) Total net gains (losses) related to derivatives not designated as hedging instruments 4 (37 ) (60 ) (40 ) Net gains (losses) on derivatives and hedging activities $ (3 ) $ (43 ) $ (76 ) $ (39 ) 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 millions): For the Three Months Ended September 30, 2016 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 $ 69 $ (82 ) $ (13 ) $ (36 ) Advances 2 95 (95 ) — (34 ) Consolidated obligation bonds (103 ) 109 6 23 Total $ 61 $ (68 ) $ (7 ) $ (47 ) For the Three Months Ended September 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 $ (241 ) $ 238 $ (3 ) $ (44 ) Advances 2 (91 ) 90 (1 ) (48 ) Consolidated obligation bonds 71 (73 ) (2 ) 32 Total $ (261 ) $ 255 $ (6 ) $ (60 ) For the Nine Months Ended September 30, 2016 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 $ (335 ) $ 319 $ (16 ) $ (110 ) Advances 2 (83 ) 84 1 (111 ) Consolidated obligation bonds 49 (50 ) (1 ) 56 Total $ (369 ) $ 353 $ (16 ) $ (165 ) For the Nine Months Ended September 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 $ (161 ) $ 161 $ — $ (111 ) Advances 2 (58 ) 59 1 (130 ) Consolidated obligation bonds 68 (68 ) — 87 Total $ (151 ) $ 152 $ 1 $ (154 ) 1 Represents the net interest settlements on derivatives in fair value hedge relationships and the amortization of the financing element of off-market derivatives, both of which are included in the interest income or interest expense line item of the respective hedged item type. This amortization for off-market derivatives totaled $7 million and $23 million for the three and nine months ended September 30, 2016. The amortization totaled $10 million and $13 million for the three and nine months ended September 30, 2015. 2 Includes net gains (losses) on fair value hedge firm commitments of forward starting advances. 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 uncleared 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 uncleared 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 in turn notifies the Bank. 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 for changes in the fair value of cleared derivatives is posted daily through a clearing agent. 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 uncleared 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 uncleared derivative instruments in net liability positions. The aggregate fair value of all uncleared derivative instruments with credit-risk related contingent features that were in a net liability position (before cash collateral and related accrued interest) at September 30, 2016 was $431 million , for which the Bank posted collateral of $352 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 $71 million of collateral to its uncleared derivative counterparties at September 30, 2016 . 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 September 30, 2016 . 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 millions): September 30, 2016 December 31, 2015 Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Derivative instruments meeting netting requirements Gross recognized amount Uncleared derivatives $ 112 $ 543 $ 110 $ 406 Cleared derivatives 116 570 45 299 Total gross recognized amount 228 1,113 155 705 Gross amounts of netting adjustments and cash collateral Uncleared derivatives (106 ) (458 ) (109 ) (304 ) Cleared derivatives (14 ) (570 ) 48 (299 ) Total gross amounts of netting adjustments and cash collateral (120 ) (1,028 ) (61 ) (603 ) Net amounts after netting adjustments and cash collateral Uncleared derivatives 6 85 1 102 Cleared derivatives 102 — 93 — Total net amounts after netting adjustments and cash collateral 108 85 94 102 Uncleared derivatives instruments not meeting netting requirements 1 1 — — — Total derivative assets and derivative liabilities Uncleared derivatives 7 85 1 102 Cleared derivatives 102 — 93 — Total derivative assets and derivative liabilities $ 109 $ 85 $ 94 $ 102 1 Represents mortgage delivery commitments that are not subject to an enforceable netting agreement. |
Consolidated Obligations
Consolidated Obligations | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 and December 31, 2015 , the total par value of outstanding consolidated obligations of the FHLBanks was $967.7 billion and $905.2 billion . DISCOUNT NOTES The following table summarizes the Bank's discount notes (dollars in millions): September 30, 2016 December 31, 2015 Amount Weighted Average Interest Rate Amount Weighted Average Interest Rate Par value $ 84,550 0.41 % $ 99,074 0.31 % Discounts and concessions 1 (69 ) (84 ) Total $ 84,481 $ 98,990 1 Concessions represent fees paid to dealers in connections with the issuance of certain consolidated obligation discount notes. BONDS The following table summarizes the Bank's bonds outstanding by contractual maturity (dollars in millions): September 30, 2016 December 31, 2015 Year of Contractual Maturity Amount Weighted Average Interest Rate Amount Weighted Average Interest Rate Due in one year or less $ 42,966 0.74 % $ 15,676 0.78 % Due after one year through two years 19,344 0.97 3,808 2.91 Due after two years through three years 7,849 1.61 1,604 2.13 Due after three years through four years 2,833 2.39 2,780 2.93 Due after four years through five years 4,783 1.81 2,243 3.35 Thereafter 4,404 3.02 4,788 3.08 Total par value 82,179 1.12 % 30,899 1.85 % Premiums 271 312 Discounts and concessions 1 (67 ) (35 ) Fair value hedging adjustments 71 32 Total $ 82,454 $ 31,208 1 Concessions represent fees paid to dealers in connections with the issuance of certain consolidated obligation bonds. The following table summarizes the Bank's bonds outstanding by call features (dollars in millions): September 30, December 31, Noncallable or nonputable $ 79,870 $ 28,050 Callable 2,309 2,849 Total par value $ 82,179 $ 30,899 |
Capital
Capital | 9 Months Ended |
Sep. 30, 2016 | |
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 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 capital 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. EXCESS STOCK Capital stock owned by members in excess of their investment requirement is deemed excess capital stock. Under its Capital Plan, the Bank, at its discretion and upon 15 days' written notice, may repurchase excess membership capital stock. The Bank, at its discretion, may also repurchase excess activity-based capital stock to the extent that (i) the excess capital stock balance exceeds an operational threshold set forth in the Capital Plan, which is currently set at zero, or (ii) a member submits a notice to redeem all or a portion of the excess activity-based capital stock. At September 30, 2016 and December 31, 2015 , the Bank had no excess capital stock outstanding. MANDATORILY REDEEMABLE CAPITAL STOCK The Bank reclassifies capital stock subject to redemption from equity to a liability (mandatorily redeemable capital stock) at the time shares meet the definition of a mandatorily redeemable financial instrument. This occurs after a member provides written notice of intention to withdraw from membership, becomes ineligible for continuing membership, or attains non-member status by merger or consolidation, charter termination, or other involuntary termination from membership. Dividends on mandatorily redeemable capital stock are classified as interest expense in the Statements of Income. As a result of the final rule on membership issued by the Finance Agency effective February 19, 2016, the eligibility requirements for FHLBank members were changed rendering captive insurance companies ineligible for FHLBank membership. Captive insurance company members that were admitted as members prior to September 12, 2014 (the date the Finance Agency proposed this rule) will have their memberships terminated no later than February 19, 2021. Captive insurance company members that were admitted as members after September 12, 2014 will have their memberships terminated no later than February 19, 2017. On the effective date of the final rule, the Bank reclassified $723 million of capital stock, the total outstanding capital stock held by all of the Bank's captive insurance companies, to mandatorily redeemable capital stock. At September 30, 2016 and December 31, 2015 , the Bank's mandatorily redeemable capital stock totaled $675 million and $103 million . During the three and nine months ended September 30, 2016 , interest expense on mandatorily redeemable capital stock was $6 million and $15 million . During the three and nine months ended September 30, 2015, interest expense on mandatorily redeemable capital stock was $1 million and $2 million . The following tables summarize changes in mandatorily redeemable capital stock (dollars in millions): For the Three Months Ended September 30, 2016 2015 Balance, beginning of period $ 698 $ 119 Capital stock reclassified to (from) mandatorily redeemable capital stock, net 1 14 Repurchases/redemptions of mandatorily redeemable capital stock (24 ) (27 ) Balance, end of period $ 675 $ 106 For the Nine Months Ended September 30, 2016 2015 Balance, beginning of period $ 103 $ 24 Mandatorily redeemable capital stock assumed from merger — 725 Capital stock reclassified to (from) mandatorily redeemable capital stock, net 732 (75 ) Repurchases/redemptions of mandatorily redeemable capital stock (160 ) (568 ) Balance, end of period $ 675 $ 106 The following table summarizes the Bank's mandatorily redeemable capital stock by year of contractual redemption (dollars in millions): Year of Contractual Redemption 1 September 30, 2016 December 31, 2015 Due in one year or less $ 4 $ 7 Due after one year through two years 5 4 Due after two years through three years — 65 Due after three years through four years 4 4 Due after four years through five years 2 — Thereafter 2 639 — Past contractual redemption date due to outstanding activity with the Bank 21 23 Total $ 675 $ 103 1 At the Bank's election, the mandatorily redeemable capital stock may be redeemed prior to the expiration of the five year redemption period that commences on the date of the notice of redemption, or in the case of captive insurance company members, on the date of the membership termination. 2 Represents mandatorily redeemable capital stock resulting from the Finance Agency rule previously discussed that makes captive insurance companies ineligible for FHLBank membership. The related mandatorily redeemable capital stock is not required to be redeemed until five years after the member's termination. 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.” The Bank treats this additional capital from merger as a component of total capital for regulatory capital purposes. Dividends on capital stock have been paid from this account since the merger date and the Bank intends to pay future dividends, when and if declared, from this account until the additional capital from merger balance is depleted. At September 30, 2016 and December 31, 2015 the Bank's additional capital from merger balance totaled $92 million and $194 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 September 30, 2016 and December 31, 2015 , the Bank's restricted retained earnings account totaled $200 million and $101 million . ACCUMULATED OTHER COMPREHENSIVE INCOME The following table summarizes changes in accumulated other comprehensive income (AOCI) (dollars in millions): Net unrealized gains (losses) on AFS securities (Note 4) Pension and postretirement benefits Total AOCI Balance, June 30, 2015 $ 124 $ (2 ) $ 122 Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) on AFS securities (120 ) — (120 ) Reclassifications from other comprehensive income (loss) to net income Amortization - pension and postretirement — (1 ) (1 ) Net current period other comprehensive income (loss) (120 ) (1 ) (121 ) Balance, September 30, 2015 $ 4 $ (3 ) $ 1 Balance, June 30, 2016 $ (83 ) $ (2 ) $ (85 ) Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) on AFS securities 46 — 46 Net current period other comprehensive income (loss) 46 — 46 Balance, September 30, 2016 $ (37 ) $ (2 ) $ (39 ) Balance, December 31, 2014 $ 126 $ (3 ) $ 123 Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) on AFS securities (122 ) — (122 ) Net current period other comprehensive income (loss) (122 ) — (122 ) Balance, September 30, 2015 $ 4 $ (3 ) $ 1 Balance, December 31, 2015 $ (82 ) $ (2 ) $ (84 ) Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) on AFS securities 45 — 45 Net current period other comprehensive income (loss) 45 — 45 Balance, September 30, 2016 $ (37 ) $ (2 ) $ (39 ) 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 September 30, 2016 and December 31, 2015 , nonpermanent capital included additional capital from merger. 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 millions): September 30, 2016 December 31, 2015 Required Actual Required Actual Regulatory capital requirements Risk-based capital $ 939 $ 7,627 $ 951 $ 5,618 Regulatory capital $ 7,043 $ 7,719 $ 5,495 $ 5,812 Leverage capital $ 8,804 $ 11,533 $ 6,869 $ 8,621 Capital-to-assets ratio 4.00 % 4.38 % 4.00 % 4.23 % Leverage ratio 5.00 % 6.55 % 5.00 % 6.28 % |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2016 | |
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 three and nine months ended September 30, 2016 and 2015 . The following table summarizes the carrying value, fair value, and fair value hierarchy of the Bank's financial instruments at September 30, 2016 (dollars in millions). 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 $ 245 $ 245 $ — $ — $ — $ 245 Interest-bearing deposits 2 — 2 — — 2 Securities purchased under agreements to resell 6,250 — 6,250 — — 6,250 Federal funds sold 4,635 — 4,635 — — 4,635 Trading securities 4,077 — 4,077 — — 4,077 Available-for-sale securities 22,931 — 22,931 — — 22,931 Held-to-maturity securities 4,956 — 5,035 16 — 5,051 Advances 125,828 — 125,973 — — 125,973 Mortgage loans held for portfolio, net 6,792 — 6,932 121 — 7,053 Accrued interest receivable 187 — 187 — — 187 Derivative assets, net 109 — 229 — (120 ) 109 Other assets 23 23 — — — 23 Liabilities Deposits (1,033 ) — (1,033 ) — — (1,033 ) Consolidated obligations Discount notes (84,481 ) — (84,500 ) — — (84,500 ) Bonds (82,454 ) — (83,123 ) — — (83,123 ) Total consolidated obligations (166,935 ) — (167,623 ) — — (167,623 ) Mandatorily redeemable capital stock (675 ) (675 ) — — — (675 ) Accrued interest payable (181 ) — (181 ) — — (181 ) Derivative liabilities, net (85 ) — (1,113 ) — 1,028 (85 ) Other Commitments to fund advances — — 4 — — 4 Standby letters of credit (3 ) — — (3 ) — (3 ) Standby bond purchase agreements — — 2 — — 2 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, 2015 (dollars in millions): Fair Value Financial Instruments Carrying Value Level 1 Level 2 Level 3 Netting Adjustment 1 Total Assets Cash and due from banks $ 982 $ 982 $ — $ — $ — $ 982 Interest-bearing deposits 2 — 2 — — 2 Securities purchased under agreements to resell 6,775 — 6,775 — — 6,775 Federal funds sold 2,270 — 2,270 — — 2,270 Trading securities 4,047 — 4,047 — — 4,047 Available-for-sale securities 20,988 — 20,988 — — 20,988 Held-to-maturity securities 6,085 — 6,123 19 — 6,142 Advances 89,173 — 89,212 — — 89,212 Mortgage loans held for portfolio, net 6,755 — 6,792 112 — 6,904 Accrued interest receivable 143 — 143 — — 143 Derivative assets, net 94 — 155 — (61 ) 94 Other assets 19 19 — — — 19 Liabilities Deposits (1,110 ) — (1,110 ) — — (1,110 ) Consolidated obligations Discount notes (98,990 ) — (98,984 ) — — (98,984 ) Bonds (31,208 ) — (31,610 ) — — (31,610 ) Total consolidated obligations (130,198 ) — (130,594 ) — — (130,594 ) Mandatorily redeemable capital stock (103 ) (103 ) — — — (103 ) Accrued interest payable (119 ) — (119 ) — — (119 ) Derivative liabilities, net (102 ) — (705 ) — 603 (102 ) Other Commitments to fund advances — — (1 ) — — (1 ) Standby letters of credit (2 ) — — (2 ) — (2 ) Standby bond purchase agreements — — 2 — — 2 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. 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 September 30, 2016 and December 31, 2015 , four prices were received for the majority of the Bank's investment securities and the final prices for 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. 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 broker price opinion, which considers actual property characteristics and conditions, or a property value 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. 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 uncleared 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 grantor trust assets, 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 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 September 30, 2016 (dollar s in millions): Recurring Fair Value Measurements Level 1 Level 2 Level 3 Netting Adjustment 1 Total Assets Trading securities Other U.S. obligations $ — $ 229 $ — $ — $ 229 GSE and Tennessee Valley Authority obligations — 3,086 — — 3,086 Other non-MBS — 288 — — 288 GSE multifamily MBS — 474 — — 474 Total trading securities — 4,077 — — 4,077 Available-for-sale securities Other U.S. obligations — 3,703 — — 3,703 GSE and Tennessee Valley Authority obligations — 1,492 — — 1,492 State or local housing agency obligations — 1,022 — — 1,022 Other non-MBS — 296 — — 296 Other U.S. obligations single-family MBS — 3,501 — — 3,501 GSE single-family MBS — 1,356 — — 1,356 GSE multifamily MBS — 11,561 — — 11,561 Total available-for-sale securities — 22,931 — — 22,931 Advances 2 — 2 — — 2 Derivative assets, net Interest-rate related — 228 — (120 ) 108 Mortgage delivery commitments — 1 — — 1 Total derivative assets, net — 229 — (120 ) 109 Other assets 23 — — — 23 Total recurring assets at fair value $ 23 $ 27,239 $ — $ (120 ) $ 27,142 Liabilities Derivative liabilities, net Interest-rate related $ — $ (1,112 ) $ — $ 1,028 $ (84 ) Forward settlement agreements (TBAs) — (1 ) — — (1 ) Total derivative liabilities, net — (1,113 ) — 1,028 (85 ) Total recurring liabilities at fair value $ — $ (1,113 ) $ — $ 1,028 $ (85 ) 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, 2015 (dollars in millions): Recurring Fair Value Measurements Level 1 Level 2 Level 3 Netting Adjustment 1 Total Assets Trading securities Other U.S. obligations $ — $ 237 $ — $ — $ 237 GSE and Tennessee Valley Authority obligations — 3,077 — — 3,077 Other non-MBS — 276 — — 276 GSE multifamily MBS — 457 — — 457 Total trading securities — 4,047 — — 4,047 Available-for-sale securities Other U.S. obligations — 3,985 — — 3,985 GSE and Tennessee Valley Authority obligations — 2,115 — — 2,115 State or local housing agency obligations — 1,047 — — 1,047 Other non-MBS — 278 — — 278 Other U.S. obligations single-family MBS — 2,270 — — 2,270 GSE single-family MBS — 1,605 — — 1,605 GSE multifamily MBS — 9,688 — — 9,688 Total available-for-sale securities — 20,988 — — 20,988 Advances 2 — 8 — — 8 Derivative assets, net Interest-rate related — 155 — (61 ) 94 Other assets 19 — — — 19 Total recurring assets at fair value $ 19 $ 25,198 $ — $ (61 ) $ 25,156 Liabilities Bonds 2 $ — $ (15 ) $ — $ — $ (15 ) Derivative liabilities, net Interest-rate related — (705 ) — 603 (102 ) Total recurring liabilities at fair value $ — $ (720 ) $ — $ 603 $ (117 ) 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. 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. The Bank estimates the fair value of these assets based primarily on a broker price opinion or property values from an external pricing vendor. The Bank applies a haircut on these values, which can range between 10 and 20 percent, to capture certain limitations in the estimation process and takes into consideration 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 millions): September 30, 2016 December 31, Impaired mortgage loans held for portfolio 1 $ 10 $ 25 Real estate owned 1 1 1 Total non-recurring assets 1 $ 11 $ 26 1 The fair value information presented for September 30, 2016 is as of the date the fair value adjustment was recorded during the nine months ended September 30, 2016 . The fair value information presented for December 31, 2015 is as of the date the fair value adjustment was recorded during the year ended December 31, 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 elects the fair value option for certain financial instruments when a hedge relationship does not qualify for hedge accounting. These fair value elections are made primarily in an effort to mitigate the potential income statement volatility that can arise when an economic derivative is adjusted for changes in fair value but the related hedged item is not. For financial instruments recorded under the fair value option, the related contractual interest income and interest expense 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. For the three and nine months ended September 30, 2016 and 2015, net gains on financial instruments held at fair value (i.e. advances and/or consolidated obligation bonds) were less than $1 million. At September 30, 2016 and December 31, 2015, the Bank determined no credit risk adjustments for nonperformance were necessary to the instruments recorded under the fair value option. The following tables summarize the difference between the unpaid principal balance and fair value of outstanding instruments for which the fair value option has been elected (dollars in millions): September 30, 2016 Unpaid Principal Balance Fair Value Fair Value Over (Under) Unpaid Principal Advances 1 $ 2 $ 2 $ — December 31, 2015 Unpaid Principal Balance Fair Value Fair Value Over (Under) Unpaid Principal Advances 1 $ 8 $ 8 $ — Bonds 15 15 — 1 At September 30, 2016 and December 31, 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 | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 and December 31, 2015 , 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 $801.0 billion and $775.2 billion . The following table summarizes additional off-balance sheet commitments for the Bank (dollars in millions): September 30, 2016 December 31, 2015 Expire within one year Expire after one year Total Total Standby letters of credit $ 5,880 $ 131 $ 6,011 $ 5,482 Standby bond purchase agreements 98 333 431 560 Commitments to purchase mortgage loans 211 — 211 51 Commitments to issue bonds 54 — 54 — Commitments to issue discount notes — — — 2,500 Commitments to fund advances 204 90 294 145 Other commitments — — — 87 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 2025 . Unearned fees for standby letters of credit are recorded in “Other liabilities” in the Statements of Condition and amounted to $3 million and $2 million at September 30, 2016 and December 31, 2015 . 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 September 30, 2016 and December 31, 2015 is reported in “Note 13 — 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. At September 30, 2016 , the Bank had standby bond purchase agreements with five housing associates. The standby bond purchase commitments entered into by the Bank have original expiration periods of up to seven years, currently no later than 2020 . During both the nine months ended September 30, 2016 and 2015 , the Bank was not required to purchase any bonds under these agreements. For both the three months ended September 30, 2016 and 2015, the Bank received fees for the guarantees that amounted to less than $1 million. For both the nine months ended September 30, 2016 and 2015, the Bank received fees for the guarantees that amounted to $1 million . The estimated fair value of standby bond purchase agreements at September 30, 2016 and December 31, 2015 is reported in " Note 13 — 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 September 30, 2016 and December 31, 2015 is reported in “Note 10 — Derivatives and Hedging Activities” as mortgage delivery commitments. Commitments to Issue Bonds and Discount Notes . At September 30, 2016 , the Bank had commitments to issue $54 million of consolidated obligation bonds and no commitments to issue consolidated obligation discount notes. At December 31, 2015 , the Bank had commitments to issue $2.5 billion of consolidated obligation discount notes and no commitments to issue consolidated obligation bonds. 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 September 30, 2016 and December 31, 2015 , the Bank had commitments to fund advances of $294 million and $145 million . Other Commitments . On December 30, 2013, the Bank entered into an agreement with the Iowa Finance Authority (IFA) to purchase up to $100 million of taxable multi-family mortgage revenue bonds. As of December 31, 2015 , the Bank had a commitment to purchase $87 million of bonds under the IFA agreement. As of September 30, 2016, the Bank did not have a commitment to purchase bonds as the IFA agreement expired on June 30, 2016. The Bank has an FLA memorandum account which is used to track the Bank's potential loss exposure under each MPF 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 MPF master commitments with a PFI credit enhancement obligation was $96 million and $93 million at September 30, 2016 and December 31, 2015 . For additional information related to the FLA commitment, refer to "Note 9 — Allowance for Credit Losses." 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 pursue these proceedings. 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. Litigation settlement gains are considered realized and recorded when the Bank receives cash or assets that are readily convertible to known amounts of cash or claims to cash. In addition, litigation settlement gains are considered realizable and recorded when the Bank enters into a signed agreement that is not subject to appeal, where the counterparty has the ability to pay, and the amount to be received can be reasonably estimated. Prior to being realized or realizable, the Bank considers potential litigation settlement gains to be gain contingencies, and therefore they are not recorded in the Statements of Income. The Bank records legal expenses related to litigation settlements as incurred in other expenses in the Statements of Income with the exception of certain legal expenses related to litigation settlement awards that are contingent based fees for the attorneys representing the Bank. The Bank incurs and recognizes these contingent based legal fees only when litigation settlement awards are realized, at which time these fees are netted against the gains recognized on the litigation settlement. During the nine months ended September 30, 2016, the Bank recognized and received $337 million in net gains on litigation settlements through other income (loss), due to the settlement of certain private-label MBS claims. The Bank did not recognize any net gains on litigation settlements during the three months ended September 30, 2016. During both the three and nine months ended September 30, 2015 , the Bank recognized $12 million in net gains on litigation settlements. |
Activities with Stockholders
Activities with Stockholders | 9 Months Ended |
Sep. 30, 2016 | |
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 millions): September 30, 2016 December 31, 2015 Amount % of Total Amount % of Total Advances $ 2,649 2 $ 1,606 2 Mortgage loans 170 3 151 2 Deposits 25 2 17 2 Capital stock 163 3 120 2 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 September 30, 2016 , the Bank had the following business concentrations with stockholders (dollars in millions): Capital Stock Mortgage Interest Stockholder Amount % of Total 1 Advances Loans Income 2 Wells Fargo Bank, N.A. $ 2,755 43 $ 68,625 $ — $ 278 Superior Guaranty Insurance Company 3 30 1 — 737 — Wells Fargo Bank Northwest, N.A. 3 2 — — 39 — Total $ 2,787 44 $ 68,625 $ 776 $ 278 1 Pursuant to applicable Finance Agency regulations, the Bank's voting structure limits the voting rights of these stockholders and other members holding a significant amount of the Bank's capital stock. 2 Represents interest income earned on advances during the nine months ended September 30, 2016 . Interest income on mortgage loans is excluded from this table as this interest relates to the borrower, not to the stockholder. 3 Superior Guaranty Insurance Company and Wells Fargo Bank Northwest, N.A. are affiliates of Wells Fargo Bank, N.A. At December 31, 2015 , the Bank had the following business concentrations with stockholders (dollars in millions): Capital Stock Mortgage Interest Stockholder Amount % of Total 1 Advances Loans Income 2 Wells Fargo Bank, N.A. $ 1,490 31 $ 37,000 $ — $ 99 Superior Guaranty Insurance Company 3 37 1 — 899 — Wells Fargo Bank Northwest N.A. 3 2 — — 48 — Total $ 1,529 32 $ 37,000 $ 947 $ 99 1 Pursuant to applicable Finance Agency regulations, the Bank's voting structure limits the voting rights of these stockholders and other members holding a significant amount of the Bank's capital stock. 2 Represents interest income earned on advances during the year ended December 31, 2015 . Interest income on mortgage loans is excluded from this table as this interest relates to the borrower, not to the stockholder. 3 Superior Guaranty Insurance Company and Wells Fargo Bank Northwest, N.A. are affiliates of Wells Fargo Bank, N.A. |
Activities with Other FHLBanks
Activities with Other FHLBanks | 9 Months Ended |
Sep. 30, 2016 | |
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 both the three months ended September 30, 2016 and 2015 , the Bank recorded less than $1 million in service fee expense to the Chicago Bank. For both the nine months ended September 30, 2016 and 2015 , the Bank recorded $2 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 nine months ended September 30, 2016, the Bank did not lend funds to other FHLBanks. The following table summarizes loan activity to other FHLBanks during the nine months ended September 30, 2015 (dollars in millions): Other FHLBank Beginning Balance Advance Principal Repayment Ending Balance 2015 Topeka $ — $ 100 $ (100 ) $ — The following table summarizes borrowing activity from other FHLBanks during the nine months ended September 30, 2016 and 2015 (dollars in millions): Other FHLBank Beginning Balance Borrowing Principal Payment Ending Balance 2016 San Francisco $ — $ 200 $ (200 ) $ — 2015 Dallas $ — $ 200 $ (200 ) $ — San Francisco — 100 (100 ) — $ — $ 300 $ (300 ) $ — At September 30, 2016 and 2015 , 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. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events Subsequent events have been evaluated from October 1, 2016, through the time of the Form 10-Q filing with the Securities and Exchange Commission. No material subsequent events were identified. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
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] | Certain amounts in the Bank's 2015 financial statements and footnotes have been reclassified to conform to the presentation for the three and nine months ended September 30, 2016 . These amounts were not deemed to be material. |
Debt, Policy [Policy Text Block] | Concessions . The Bank pays concessions to dealers in connection with the issuance of certain consolidated obligations. The Office of Finance prorates the amount of the concession to each FHLBank based upon the percentage of the debt issued that is attributed to that FHLBank. Concessions paid on consolidated obligations designated under the fair value option are expensed as incurred and recorded in other expense. Concessions paid on consolidated obligations not designated under the fair value option are deferred and amortized over the contractual life of the consolidated obligations using the level-yield method. Unamortized concessions are included as a direct deduction from the carrying amount of “Consolidated obligation discount notes” or “Consolidated obligation bonds” in the Statements of Condition and the amortization of those concessions is included in consolidated obligation interest expense. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted and Issued Accounting Guidance ADOPTED ACCOUNTING GUIDANCE Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships On March 10, 2016, the FASB issued amendments to clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under GAAP does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The amendments provide entities with the option to apply the guidance using either a prospective approach or a modified retrospective approach. The guidance would have become effective for the Bank in 2017 but the guidance allowed early adoption. The Bank elected to early adopt this guidance prospectively on January 1, 2016. The adoption of this guidance did not have an effect on the Bank’s financial condition, results of operations, or cash flows. Simplifying the Accounting for Measurement-Period Adjustments On September 25, 2015, the FASB issued guidance to simplify the accounting for measurement-period adjustments recognized in a business combination. This guidance requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. It also requires that the acquirer present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. This guidance became effective for the Bank beginning on January 1, 2016 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. Cloud Computing Arrangements On April 15, 2015, the FASB issued amendments to clarify a customer's accounting for fees paid in a cloud computing arrangement. The amendments provide guidance to customers on determining whether a cloud computing arrangement includes a software license that should be accounted for as internal-use software. If the arrangement does not contain a software license, it would be accounted for as a service contract. This guidance became effective for the Bank beginning on January 1, 2016 and was adopted prospectively. The adoption of this guidance did not effect 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 became effective for the Bank beginning on January 1, 2016 and was adopted on a retrospective basis. The adoption of this guidance resulted in a reclassification of unamortized debt issuance costs from other assets to consolidated obligations on the Bank's Statement of Condition. The adoption of this guidance did not have a material effect on the Bank's financial condition, results of operations, or cash flows. Refer to "Note 1 — Basis of Presentation — Change in Accounting Principle" for additional details on this reclassification. 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 became effective for the Bank beginning on January 1, 2016. The adoption of this guidance did not have an effect on the Bank’s financial condition, results of operations, or cash flows. ISSUED ACCOUNTING GUIDANCE Classification of Certain Cash Receipts and Cash Payments On August 26, 2016, the FASB issued amendments to clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. This guidance is intended to reduce existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This guidance is effective for the Bank for interim and annual periods beginning on January 1, 2018, and early adoption is permitted. This guidance should be applied using a retrospective transition method to each period presented. The Bank is in the process of evaluating this guidance, but its effect on the Bank's cash flows is not expected to be material. Measurement of Credit Losses on Financial Instruments On June 16, 2016, the FASB issued amended guidance for the accounting of credit losses on financial instruments. The amendments require entities to measure expected credit losses based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The new guidance requires a financial asset, or a group of financial assets, measured at amortized cost to be presented at the net amount expected to be collected. The guidance also requires, among other things, the following: • The statement of income to reflect the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. • Entities to determine the allowance for credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (PCD assets) that are measured at amortized cost in a similar manner to other financial assets measured at amortized cost. The initial allowance for credit losses is required to be added to the purchase price of the assets acquired. • Entities to record credit losses relating to AFS debt securities through an allowance for credit losses. The amendments limit the allowance for credit losses to the amount by which fair value is below amortized cost. • Public entities to further disaggregate the current disclosure of credit quality indicators in relation to the amortized cost of financing receivables by the year of origination (i.e., vintage). This guidance is effective for the Bank for interim and annual periods beginning on January 1, 2020. Early application is permitted as of the interim and annual reporting periods beginning after December 15, 2018. This guidance should be applied using a modified-retrospective approach, through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. In addition, entities are required to use a prospective transition approach for PCD assets upon adoption and for debt securities for which an other-than-temporary impairment had been recognized before the effective date. The Bank is in the process of evaluating this guidance, and its effect on the Bank's financial condition, results of operations, and cash flows has not yet been determined. Contingent Put and Call Options in Debt Instruments On March 14, 2016, the FASB issued amendments to clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. The guidance requires entities to apply only the four-step decision sequence when assessing whether the economic characteristics and risks of call (put) options are clearly and closely related to the economic characteristics and risks of their debt hosts. Consequently, when a call (put) option is contingently exercisable, an entity does not have to assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks. This guidance becomes effective for the Bank for the interim and annual periods beginning on January 1, 2017, and early adoption is permitted. The guidance should be applied on a modified retrospective basis to existing debt instruments as of the beginning of the period for which the amendments are effective. The Bank is in the process of evaluating this guidance, but its effect on the Bank's financial condition, results of operations, or cash flows is not expected to be material. Leases On February 25, 2016, the FASB issued guidance which requires recognition of lease assets and lease liabilities on the statement of condition and disclosure of key information about leasing arrangements. Specifically, this guidance requires a lessee, of operating or finance leases, to recognize on the statement of condition a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and lease liabilities. Under previous GAAP, a lessee was not required to recognize lease assets and lease liabilities arising from operating leases on the statement of condition. While this guidance does not fundamentally change lessor accounting, some changes have been made to align that guidance with the lessee guidance and other areas within GAAP. The guidance becomes effective for the Bank for the interim and annual periods beginning on January 1, 2019, and early application is permitted. The guidance requires lessors and lessees to recognize and measure leases at the beginning of the earliest period presented in the financial statements using a modified retrospective approach. The Bank is in the process of evaluating this guidance, and its anticipated effect on the Bank's financial condition, results of operations, or cash flows has not yet been determined. Recognition and Measurement of Financial Assets and Financial Liabilities On January 5, 2016, FASB issued amended guidance on certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This guidance includes, but is not limited to, the following: • Requires equity investments (with certain exceptions) to be measured at fair value with changes in fair value recognized in net income. • Requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. • Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements. • Eliminates the requirement for public entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. The guidance becomes effective for the Bank for the interim and annual periods beginning on January 1, 2018, and early adoption is only permitted for certain provisions. The amendments, in general, should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the period of adoption. 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. 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 Bank for the annual period ending December 31, 2016 and for the annual and interim periods thereafter, and early application is permitted. 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 recognizing 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, and lease contracts. The guidance provides entities with the option of using either of the following adoption methods: a full retrospective method, retrospectively to each prior reporting period presented; or a modified retrospective method, retrospectively with the cumulative effect of initially applying this guidance recognized at the date of initial application. On August 12, 2015, the FASB issued an amendment to defer the effective date of this guidance issued in May 2014 by one year. In 2016, the FASB has issued additional amendments to clarify certain aspects of the new revenue guidance. However, these amendments do not change the core principle in the new revenue standard. This guidance is effective for the Bank for interim and annual periods beginning on January 1, 2018. Early application is permitted only as of the interim and annual reporting periods beginning after December 15, 2016. The Bank is in the process of evaluating this guidance, but its effect on the Bank's financial condition, results of operations, and cash flows is not expected to be material. |
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] | 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 and MPP mortgage loan portfolios at the balance sheet date. The measurement of the Bank's MPF and MPP 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, and (iii) estimating additional credit losses in the conventional mortgage loan portfolio. 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 primarily on the following factors: (i) current loan delinquencies, (ii) loans migrating to collateral-dependent status, and (iii) actual historical loss severities. 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 loan modification plans 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, including but not limited to, the occurrence of foreclosure or when a loan is deemed collateral-dependent. The Bank charges-off the portion of the outstanding conventional mortgage loan balance in excess of the fair value of the underlying collateral, which is determined using property values, less selling costs and expected proceeds from PMI. 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. These additional factors include, but are not limited to certain quantifiable economic factors, such as unemployment rates and home prices impacting housing markets. |
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 (fair value hedge); or • as an economic hedge to manage certain defined risks in its Statements of Condition. These hedges are primarily used to (i) manage mismatches between the coupon features of the Bank's assets and liabilities and offset prepayment risk in certain assets, or (ii) mitigate the income statement volatility that occurs when financial instruments are recorded at fair value and hedge accounting is not permitted by accounting guidance (economic hedge). 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 (uncleared 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 monthly) 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 monthly) 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] | The Bank reclassifies capital stock subject to redemption from equity to a liability (mandatorily redeemable capital stock) at the time shares meet the definition of a mandatorily redeemable financial instrument. This occurs after a member provides written notice of intention to withdraw from membership, becomes ineligible for continuing membership, or attains non-member status by merger or consolidation, charter termination, or other involuntary termination from membership. Dividends on mandatorily redeemable capital stock are classified as interest expense in the Statements of Income. |
Restricted Retained Earnings, Policy [Policy Text Block] | 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. |
Commitments and Contingencies, Policy [Policy Text Block] | Litigation settlement gains are considered realized and recorded when the Bank receives cash or assets that are readily convertible to known amounts of cash or claims to cash. In addition, litigation settlement gains are considered realizable and recorded when the Bank enters into a signed agreement that is not subject to appeal, where the counterparty has the ability to pay, and the amount to be received can be reasonably estimated. Prior to being realized or realizable, the Bank considers potential litigation settlement gains to be gain contingencies, and therefore they are not recorded in the Statements of Income. The Bank records legal expenses related to litigation settlements as incurred in other expenses in the Statements of Income with the exception of certain legal expenses related to litigation settlement awards that are contingent based fees for the attorneys representing the Bank. The Bank incurs and recognizes these contingent based legal fees only when litigation settlement awards are realized, at which time these fees are netted against the gains recognized on the litigation settlement. |
Subsequent Events, Policy [Policy Text Block] | Subsequent events have been evaluated from October 1, 2016, through the time of the Form 10-Q filing with the Securities and Exchange Commission. No material subsequent events were identified. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Business Acquisition, Pro Forma Information [Table Text Block] | The following unaudited pro forma information 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 millions): Nine Months Ended September 30, 2015 Interest income $ 707 Net income $ 110 |
Trading Securities (Tables)
Trading Securities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |
Trading Securities [Table Text Block] | Trading securities were as follows (dollars in millions): September 30, December 31, Non-mortgage-backed securities Other U.S. obligations 1 $ 229 $ 237 GSE and Tennessee Valley Authority obligations 3,086 3,077 Other 2 288 276 Total non-mortgage-backed securities 3,603 3,590 Mortgage-backed securities GSE multifamily 474 457 Total fair value $ 4,077 $ 4,047 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) | 9 Months Ended |
Sep. 30, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | |
Schedule of Available-for-Sale Securities Reconciliation [Table Text Block] | AFS securities we re as follows (dollars in millions): September 30, 2016 Amortized 1 Gross Gross Fair Value Non-mortgage-backed securities Other U.S. obligations 2 $ 3,720 $ 4 $ (21 ) $ 3,703 GSE and Tennessee Valley Authority obligations 1,494 10 (12 ) 1,492 State or local housing agency obligations 1,023 — (1 ) 1,022 Other 3 291 5 — 296 Total non-mortgage-backed securities 6,528 19 (34 ) 6,513 Mortgage-backed securities Other U.S. obligations single-family 2 3,509 3 (11 ) 3,501 GSE single-family 1,345 11 — 1,356 GSE multifamily 11,586 36 (61 ) 11,561 Total mortgage-backed securities 16,440 50 (72 ) 16,418 Total $ 22,968 $ 69 $ (106 ) $ 22,931 December 31, 2015 Amortized 1 Gross Gross Fair Value Non-mortgage-backed securities Other U.S. obligations 2 $ 4,010 $ 4 $ (29 ) $ 3,985 GSE and Tennessee Valley Authority obligations 2,124 14 (23 ) 2,115 State or local housing agency obligations 1,048 — (1 ) 1,047 Other 3 276 4 (2 ) 278 Total non-mortgage-backed securities 7,458 22 (55 ) 7,425 Mortgage-backed securities Other U.S. obligations single-family 2 2,284 — (14 ) 2,270 GSE single-family 1,593 13 (1 ) 1,605 GSE multifamily 9,735 36 (83 ) 9,688 Total mortgage-backed securities 13,612 49 (98 ) 13,563 Total $ 21,070 $ 71 $ (153 ) $ 20,988 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/or Private Export Funding Corporation (PEFCO) 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 tables summarize 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 millions). In cases where the gross unrealized losses for an investment category are less than $1 million, the losses are not reported. September 30, 2016 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 1 $ 20 $ — $ 3,174 $ (21 ) $ 3,194 $ (21 ) GSE and Tennessee Valley Authority obligations — — 942 (12 ) 942 (12 ) State or local housing agency obligations 684 (1 ) 14 — 698 (1 ) Total non-mortgage-backed securities 704 (1 ) 4,130 (33 ) 4,834 (34 ) Mortgage-backed securities Other U.S. obligations single-family 1 1,242 (4 ) 1,122 (7 ) 2,364 (11 ) GSE single-family 152 — 26 — 178 — GSE multifamily 2,207 (5 ) 6,776 (56 ) 8,983 (61 ) Total mortgage-backed securities 3,601 (9 ) 7,924 (63 ) 11,525 (72 ) Total $ 4,305 $ (10 ) $ 12,054 $ (96 ) $ 16,359 $ (106 ) December 31, 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 1 $ 3,645 $ (29 ) $ — $ — $ 3,645 $ (29 ) GSE and Tennessee Valley Authority obligations 1,701 (23 ) — — 1,701 (23 ) State or local housing agency obligations 555 (1 ) 6 — 561 (1 ) Other 2 97 (2 ) — — 97 (2 ) Total non-mortgage-backed securities 5,998 (55 ) 6 — 6,004 (55 ) Mortgage-backed securities Other U.S. obligations single-family 1 2,270 (14 ) — — 2,270 (14 ) GSE single-family 277 (1 ) 33 — 310 (1 ) GSE multifamily 8,166 (66 ) 926 (17 ) 9,092 (83 ) Total mortgage-backed securities 10,713 (81 ) 959 (17 ) 11,672 (98 ) Total $ 16,711 $ (136 ) $ 965 $ (17 ) $ 17,676 $ (153 ) 1 Represents investment securities backed by the full faith and credit of the U.S. Government. 2 Consists of taxable municipal bonds and/or PEFCO bonds. |
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 millions): September 30, 2016 December 31, 2015 Year of Contractual Maturity Amortized Fair Value Amortized Fair Value Non-mortgage-backed securities Due in one year or less $ 177 $ 178 $ 430 $ 431 Due after one year through five years 522 529 968 978 Due after five years through ten years 4,641 4,625 4,664 4,637 Due after ten years 1,188 1,181 1,396 1,379 Total non-mortgage-backed securities 6,528 6,513 7,458 7,425 Mortgage-backed securities 16,440 16,418 13,612 13,563 Total $ 22,968 $ 22,931 $ 21,070 $ 20,988 |
Held-to-Maturity Securities (Ta
Held-to-Maturity Securities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 millions): September 30, 2016 Amortized 1 Gross Gross Fair Value Non-mortgage-backed securities GSE and Tennessee Valley Authority obligations $ 398 $ 92 $ — $ 490 State or local housing agency obligations 691 5 (4 ) 692 Total non-mortgage-backed securities 1,089 97 (4 ) 1,182 Mortgage-backed securities Other U.S. obligations single-family 2 30 — — 30 Other U.S. obligations commercial 2 4 — — 4 GSE single-family 3,816 11 (8 ) 3,819 Private-label residential 17 — (1 ) 16 Total mortgage-backed securities 3,867 11 (9 ) 3,869 Total $ 4,956 $ 108 $ (13 ) $ 5,051 December 31, 2015 Amortized 1 Gross Gross Fair Value Non-mortgage-backed securities GSE and Tennessee Valley Authority obligations $ 401 $ 57 $ (2 ) $ 456 State or local housing agency obligations 956 9 — 965 Total non-mortgage-backed securities 1,357 66 (2 ) 1,421 Mortgage-backed securities Other U.S. obligations single-family 2 47 — — 47 Other U.S. obligations commercial 2 6 — — 6 GSE single-family 4,655 9 (15 ) 4,649 Private-label residential 20 — (1 ) 19 Total mortgage-backed securities 4,728 9 (16 ) 4,721 Total $ 6,085 $ 75 $ (18 ) $ 6,142 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 millions). In cases where the gross unrealized losses for an investment category are less than $1 million, the losses are not reported. September 30, 2016 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Non-mortgage-backed securities State or local housing agency obligations $ 279 $ (4 ) $ 5 $ — $ 284 $ (4 ) Total non-mortgage-backed securities 279 (4 ) 5 — 284 (4 ) Mortgage-backed securities Other U.S. obligations single-family 1 29 — — — 29 — Other U.S. obligations commercial 1 1 — 2 — 3 — GSE single-family 2,105 (6 ) 493 (2 ) 2,598 (8 ) Private-label residential — — 11 (1 ) 11 (1 ) Total mortgage-backed securities 2,135 (6 ) 506 (3 ) 2,641 (9 ) Total $ 2,414 $ (10 ) $ 511 $ (3 ) $ 2,925 $ (13 ) December 31, 2015 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Non-mortgage backed securities GSE and Tennessee Valley Authority obligations $ 96 $ (2 ) $ — $ — $ 96 $ (2 ) State or local housing agency obligations 93 — — — 93 — Total non-mortgage-backed securities 189 (2 ) — — 189 (2 ) Mortgage-backed securities Other U.S. obligations single-family 1 40 — — — 40 — Other U.S. obligations commercial 1 5 — — — 5 — GSE single-family 3,052 (15 ) 20 — 3,072 (15 ) Private-label residential — — 13 (1 ) 13 (1 ) Total mortgage-backed securities 3,097 (15 ) 33 (1 ) 3,130 (16 ) Total $ 3,286 $ (17 ) $ 33 $ (1 ) $ 3,319 $ (18 ) 1 Represents investment securities backed by the full faith and credit of the U.S. Government. |
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 millions): September 30, 2016 December 31, 2015 Year of Contractual Maturity Amortized Fair Value Amortized Fair Value Non-mortgage-backed securities Due in one year or less $ 11 $ 11 $ 18 $ 18 Due after one year through five years 62 62 131 131 Due after five years through ten years 368 418 409 440 Due after ten years 648 691 799 832 Total non-mortgage-backed securities 1,089 1,182 1,357 1,421 Mortgage-backed securities 3,867 3,869 4,728 4,721 Total $ 4,956 $ 5,051 $ 6,085 $ 6,142 |
Advances (Tables)
Advances (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 millions): September 30, 2016 December 31, 2015 Year of Contractual Maturity Amount Weighted Amount Weighted Overdrawn demand deposit accounts $ 5 3.45 % $ 1 3.34 % Due in one year or less 20,759 0.86 18,967 0.77 Due after one year through two years 30,944 1.02 8,608 1.48 Due after two years through three years 23,587 0.88 18,517 0.93 Due after three years through four years 6,862 1.10 17,439 0.60 Due after four years through five years 28,837 0.82 16,521 0.74 Thereafter 14,528 0.96 8,858 1.36 Total par value 125,522 0.92 % 88,911 0.89 % Premiums 94 128 Discounts (7 ) (9 ) Fair value hedging adjustments 219 143 Total $ 125,828 $ 89,173 The following table summarizes all advances at September 30, 2016 and December 31, 2015 , by year of contractual maturity or next call date for callable advances, and by year of contractual maturity or next put date for putable advances (dollars in millions): Year of Contractual Maturity Year of Contractual Maturity or Next Put Date September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Overdrawn demand deposit accounts $ 5 $ 1 $ 5 $ 1 Due in one year or less 95,329 73,242 22,179 21,156 Due after one year through two years 10,922 4,513 29,756 7,549 Due after two years through three years 9,437 4,377 23,547 17,576 Due after three years through four years 2,446 2,337 6,862 17,439 Due after four years through five years 5,329 1,818 28,673 16,521 Thereafter 2,054 2,623 14,500 8,669 Total par value $ 125,522 $ 88,911 $ 125,522 $ 88,911 |
Schedule of Prepayment Fees on Advances [Table Text Block] | The following table summarizes the Bank's prepayment fees on advances, net (dollars in millions): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Prepayment fee income $ 2 $ — $ 11 $ 14 Fair value hedging adjustments 1 (1 ) — (5 ) (5 ) Prepayment fees on advances, net $ 1 $ — $ 6 $ 9 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) | 9 Months Ended |
Sep. 30, 2016 | |
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 millions): September 30, 2016 MPF MPP Total Fixed rate, long-term single-family mortgage loans $ 5,097 $ 420 $ 5,517 Fixed rate, medium-term 1 single-family mortgage loans 1,172 8 1,180 Total unpaid principal balance 6,269 428 6,697 Premiums 81 14 95 Discounts (8 ) (1 ) (9 ) Basis adjustments from mortgage loan commitments 11 — 11 Total mortgage loans held for portfolio 6,353 441 6,794 Allowance for credit losses (2 ) — (2 ) Total mortgage loans held for portfolio, net $ 6,351 $ 441 $ 6,792 December 31, 2015 MPF MPP Total Fixed rate, long-term single-family mortgage loans $ 4,884 $ 500 $ 5,384 Fixed rate, medium-term 1 single-family mortgage loans 1,265 14 1,279 Total unpaid principal balance 6,149 514 6,663 Premiums 76 18 94 Discounts (9 ) (1 ) (10 ) Basis adjustments from mortgage loan commitments 9 — 9 Total mortgage loans held for portfolio 6,225 531 6,756 Allowance for credit losses (1 ) — (1 ) Total mortgage loans held for portfolio, net $ 6,224 $ 531 $ 6,755 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 millions): September 30, 2016 MPF MPP Total Conventional mortgage loans $ 5,747 $ 384 $ 6,131 Government-insured mortgage loans 522 44 566 Total unpaid principal balance $ 6,269 $ 428 $ 6,697 December 31, 2015 MPF MPP Total Conventional mortgage loans $ 5,602 $ 464 $ 6,066 Government-insured mortgage loans 547 50 597 Total unpaid principal balance $ 6,149 $ 514 $ 6,663 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Allowance for Credit Losses [Abstract] | |
Allowance for Credit Losses by Impairment Methodology [Table Text Block] | The following table summarizes the recorded investment and allowance for credit losses of the Bank's conventional mortgage loan portfolio by impairment methodology (dollars in millions): MPF MPP 1 Total Recorded investment, September 30, 2016 2 Collectively evaluated for impairment $ 5,818 $ 372 $ 6,190 Individually evaluated for impairment, without a related allowance 30 25 55 Total recorded investment $ 5,848 $ 397 $ 6,245 Recorded investment, December 31, 2015 2 Collectively evaluated for impairment $ 5,659 $ 449 $ 6,108 Individually evaluated for impairment, without a related allowance 37 31 68 Total recorded investment $ 5,696 $ 480 $ 6,176 Allowance for credit losses, September 30, 2016 Collectively evaluated for impairment $ 2 $ — $ 2 Allowance for credit losses, December 31, 2015 Collectively evaluated for impairment $ 1 $ — $ 1 1 The allowance for credit losses on MPP loans was less than $1 million at September 30, 2016 and December 31, 2015. 2 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 millions): September 30, 2016 MPF MPP Conventional Government Conventional Government Total Past due 30 - 59 days $ 52 $ 19 $ 12 $ 4 $ 87 Past due 60 - 89 days 13 8 4 2 27 Past due 90 - 179 days 10 5 3 1 19 Past due 180 days or more 23 4 12 2 41 Total past due mortgage loans 98 36 31 9 174 Total current mortgage loans 5,750 500 366 38 6,654 Total recorded investment of mortgage loans 1 $ 5,848 $ 536 $ 397 $ 47 $ 6,828 In process of foreclosure (included above) 2 $ 16 $ 2 $ 7 $ — $ 25 Serious delinquency rate 3 1 % 2 % 4 % 7 % 1 % Past due 90 days or more and still accruing interest 4 $ — $ 9 $ — $ 3 $ 12 Non-accrual mortgage loans 5 $ 37 $ — $ 26 $ — $ 63 December 31, 2015 MPF MPP Conventional Government Conventional Government Total Past due 30 - 59 days $ 57 $ 21 $ 13 $ 5 $ 96 Past due 60 - 89 days 16 7 4 2 29 Past due 90 - 179 days 12 5 3 1 21 Past due 180 days or more 30 5 16 3 54 Total past due mortgage loans 115 38 36 11 200 Total current mortgage loans 5,581 524 444 42 6,591 Total recorded investment of mortgage loans 1 $ 5,696 $ 562 $ 480 $ 53 $ 6,791 In process of foreclosure (included above) 2 $ 19 $ 4 $ 9 $ — $ 32 Serious delinquency rate 3 1 % 2 % 4 % 8 % 1 % Past due 90 days or more and still accruing interest 4 $ — $ 10 $ — $ 4 $ 14 Non-accrual mortgage loans 5 $ 46 $ — $ 32 $ — $ 78 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. |
Impaired Financing Receivables [Table Text Block] | The following table summarizes the average recorded investment of the Bank's individually evaluated impaired loans (dollars in millions): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Impaired loans without an allowance Conventional MPF Loans $ 32 $ 41 $ 34 $ 45 Conventional MPP Loans 25 33 27 15 Total $ 57 $ 74 $ 61 $ 60 |
Derivatives and Hedging Activ34
Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 millions): September 30, 2016 December 31, 2015 Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments (fair value hedges) Interest rate swaps $ 49,271 $ 206 $ 993 $ 37,526 $ 134 $ 635 Derivatives not designated as hedging instruments (economic hedges) Interest rate swaps 1,411 22 119 1,456 21 70 Interest rate swaptions — — — 200 — — Forward settlement agreements (TBAs) 204 — 1 45 — — Mortgage delivery commitments 211 1 — 51 — — Total derivatives not designated as hedging instruments 1,826 23 120 1,752 21 70 Total derivatives before netting and collateral adjustments $ 51,097 229 1,113 $ 39,278 155 705 Netting adjustments and cash collateral 1 (120 ) (1,028 ) (61 ) (603 ) Total derivative assets and derivative liabilities $ 109 $ 85 $ 94 $ 102 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 $0.9 billion and $0.5 billion at September 30, 2016 and December 31, 2015. At September 30, 2016 and December 31, 2015, 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 millions): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Derivatives designated as hedging instruments (fair value hedges) Interest rate swaps $ (7 ) $ (6 ) $ (16 ) $ 1 Derivatives not designated as hedging instruments (economic hedges) Interest rate swaps 10 (32 ) (45 ) (24 ) Forward settlement agreements (TBAs) (2 ) (1 ) (5 ) (1 ) Mortgage delivery commitments 1 1 4 1 Net interest settlements (5 ) (5 ) (14 ) (16 ) Total net gains (losses) related to derivatives not designated as hedging instruments 4 (37 ) (60 ) (40 ) Net gains (losses) on derivatives and hedging activities $ (3 ) $ (43 ) $ (76 ) $ (39 ) |
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 millions): For the Three Months Ended September 30, 2016 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 $ 69 $ (82 ) $ (13 ) $ (36 ) Advances 2 95 (95 ) — (34 ) Consolidated obligation bonds (103 ) 109 6 23 Total $ 61 $ (68 ) $ (7 ) $ (47 ) For the Three Months Ended September 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 $ (241 ) $ 238 $ (3 ) $ (44 ) Advances 2 (91 ) 90 (1 ) (48 ) Consolidated obligation bonds 71 (73 ) (2 ) 32 Total $ (261 ) $ 255 $ (6 ) $ (60 ) For the Nine Months Ended September 30, 2016 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 $ (335 ) $ 319 $ (16 ) $ (110 ) Advances 2 (83 ) 84 1 (111 ) Consolidated obligation bonds 49 (50 ) (1 ) 56 Total $ (369 ) $ 353 $ (16 ) $ (165 ) For the Nine Months Ended September 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 $ (161 ) $ 161 $ — $ (111 ) Advances 2 (58 ) 59 1 (130 ) Consolidated obligation bonds 68 (68 ) — 87 Total $ (151 ) $ 152 $ 1 $ (154 ) 1 Represents the net interest settlements on derivatives in fair value hedge relationships and the amortization of the financing element of off-market derivatives, both of which are included in the interest income or interest expense line item of the respective hedged item type. This amortization for off-market derivatives totaled $7 million and $23 million for the three and nine months ended September 30, 2016. The amortization totaled $10 million and $13 million for the three and nine months ended September 30, 2015. 2 Includes net gains (losses) on fair value hedge firm commitments of forward starting advances. |
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 millions): September 30, 2016 December 31, 2015 Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Derivative instruments meeting netting requirements Gross recognized amount Uncleared derivatives $ 112 $ 543 $ 110 $ 406 Cleared derivatives 116 570 45 299 Total gross recognized amount 228 1,113 155 705 Gross amounts of netting adjustments and cash collateral Uncleared derivatives (106 ) (458 ) (109 ) (304 ) Cleared derivatives (14 ) (570 ) 48 (299 ) Total gross amounts of netting adjustments and cash collateral (120 ) (1,028 ) (61 ) (603 ) Net amounts after netting adjustments and cash collateral Uncleared derivatives 6 85 1 102 Cleared derivatives 102 — 93 — Total net amounts after netting adjustments and cash collateral 108 85 94 102 Uncleared derivatives instruments not meeting netting requirements 1 1 — — — Total derivative assets and derivative liabilities Uncleared derivatives 7 85 1 102 Cleared derivatives 102 — 93 — Total derivative assets and derivative liabilities $ 109 $ 85 $ 94 $ 102 1 Represents mortgage delivery commitments that are not subject to an enforceable netting agreement. |
Consolidated Obligations (Table
Consolidated Obligations (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | The following table summarizes the Bank's discount notes (dollars in millions): September 30, 2016 December 31, 2015 Amount Weighted Average Interest Rate Amount Weighted Average Interest Rate Par value $ 84,550 0.41 % $ 99,074 0.31 % Discounts and concessions 1 (69 ) (84 ) Total $ 84,481 $ 98,990 1 Concessions represent fees paid to dealers in connections with the issuance of certain consolidated obligation discount notes. |
Schedule of Maturities of Long-term Debt [Table Text Block] | The following table summarizes the Bank's bonds outstanding by contractual maturity (dollars in millions): September 30, 2016 December 31, 2015 Year of Contractual Maturity Amount Weighted Average Interest Rate Amount Weighted Average Interest Rate Due in one year or less $ 42,966 0.74 % $ 15,676 0.78 % Due after one year through two years 19,344 0.97 3,808 2.91 Due after two years through three years 7,849 1.61 1,604 2.13 Due after three years through four years 2,833 2.39 2,780 2.93 Due after four years through five years 4,783 1.81 2,243 3.35 Thereafter 4,404 3.02 4,788 3.08 Total par value 82,179 1.12 % 30,899 1.85 % Premiums 271 312 Discounts and concessions 1 (67 ) (35 ) Fair value hedging adjustments 71 32 Total $ 82,454 $ 31,208 1 Concessions represent fees paid to dealers in connections with the issuance of certain consolidated obligation bonds. |
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 millions): September 30, December 31, Noncallable or nonputable $ 79,870 $ 28,050 Callable 2,309 2,849 Total par value $ 82,179 $ 30,899 |
Capital (Tables)
Capital (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Capital [Abstract] | |
Mandatorily Redeemable Capital Stock [Table Text Block] | The following tables summarize changes in mandatorily redeemable capital stock (dollars in millions): For the Three Months Ended September 30, 2016 2015 Balance, beginning of period $ 698 $ 119 Capital stock reclassified to (from) mandatorily redeemable capital stock, net 1 14 Repurchases/redemptions of mandatorily redeemable capital stock (24 ) (27 ) Balance, end of period $ 675 $ 106 For the Nine Months Ended September 30, 2016 2015 Balance, beginning of period $ 103 $ 24 Mandatorily redeemable capital stock assumed from merger — 725 Capital stock reclassified to (from) mandatorily redeemable capital stock, net 732 (75 ) Repurchases/redemptions of mandatorily redeemable capital stock (160 ) (568 ) Balance, end of period $ 675 $ 106 The following table summarizes the Bank's mandatorily redeemable capital stock by year of contractual redemption (dollars in millions): Year of Contractual Redemption 1 September 30, 2016 December 31, 2015 Due in one year or less $ 4 $ 7 Due after one year through two years 5 4 Due after two years through three years — 65 Due after three years through four years 4 4 Due after four years through five years 2 — Thereafter 2 639 — Past contractual redemption date due to outstanding activity with the Bank 21 23 Total $ 675 $ 103 1 At the Bank's election, the mandatorily redeemable capital stock may be redeemed prior to the expiration of the five year redemption period that commences on the date of the notice of redemption, or in the case of captive insurance company members, on the date of the membership termination. 2 Represents mandatorily redeemable capital stock resulting from the Finance Agency rule previously discussed that makes captive insurance companies ineligible for FHLBank membership. The related mandatorily redeemable capital stock is not required to be redeemed until five years after the member's termination. |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table summarizes changes in accumulated other comprehensive income (AOCI) (dollars in millions): Net unrealized gains (losses) on AFS securities (Note 4) Pension and postretirement benefits Total AOCI Balance, June 30, 2015 $ 124 $ (2 ) $ 122 Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) on AFS securities (120 ) — (120 ) Reclassifications from other comprehensive income (loss) to net income Amortization - pension and postretirement — (1 ) (1 ) Net current period other comprehensive income (loss) (120 ) (1 ) (121 ) Balance, September 30, 2015 $ 4 $ (3 ) $ 1 Balance, June 30, 2016 $ (83 ) $ (2 ) $ (85 ) Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) on AFS securities 46 — 46 Net current period other comprehensive income (loss) 46 — 46 Balance, September 30, 2016 $ (37 ) $ (2 ) $ (39 ) Balance, December 31, 2014 $ 126 $ (3 ) $ 123 Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) on AFS securities (122 ) — (122 ) Net current period other comprehensive income (loss) (122 ) — (122 ) Balance, September 30, 2015 $ 4 $ (3 ) $ 1 Balance, December 31, 2015 $ (82 ) $ (2 ) $ (84 ) Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) on AFS securities 45 — 45 Net current period other comprehensive income (loss) 45 — 45 Balance, September 30, 2016 $ (37 ) $ (2 ) $ (39 ) |
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 millions): September 30, 2016 December 31, 2015 Required Actual Required Actual Regulatory capital requirements Risk-based capital $ 939 $ 7,627 $ 951 $ 5,618 Regulatory capital $ 7,043 $ 7,719 $ 5,495 $ 5,812 Leverage capital $ 8,804 $ 11,533 $ 6,869 $ 8,621 Capital-to-assets ratio 4.00 % 4.38 % 4.00 % 4.23 % Leverage ratio 5.00 % 6.55 % 5.00 % 6.28 % |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 (dollars in millions). 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 $ 245 $ 245 $ — $ — $ — $ 245 Interest-bearing deposits 2 — 2 — — 2 Securities purchased under agreements to resell 6,250 — 6,250 — — 6,250 Federal funds sold 4,635 — 4,635 — — 4,635 Trading securities 4,077 — 4,077 — — 4,077 Available-for-sale securities 22,931 — 22,931 — — 22,931 Held-to-maturity securities 4,956 — 5,035 16 — 5,051 Advances 125,828 — 125,973 — — 125,973 Mortgage loans held for portfolio, net 6,792 — 6,932 121 — 7,053 Accrued interest receivable 187 — 187 — — 187 Derivative assets, net 109 — 229 — (120 ) 109 Other assets 23 23 — — — 23 Liabilities Deposits (1,033 ) — (1,033 ) — — (1,033 ) Consolidated obligations Discount notes (84,481 ) — (84,500 ) — — (84,500 ) Bonds (82,454 ) — (83,123 ) — — (83,123 ) Total consolidated obligations (166,935 ) — (167,623 ) — — (167,623 ) Mandatorily redeemable capital stock (675 ) (675 ) — — — (675 ) Accrued interest payable (181 ) — (181 ) — — (181 ) Derivative liabilities, net (85 ) — (1,113 ) — 1,028 (85 ) Other Commitments to fund advances — — 4 — — 4 Standby letters of credit (3 ) — — (3 ) — (3 ) Standby bond purchase agreements — — 2 — — 2 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, 2015 (dollars in millions): Fair Value Financial Instruments Carrying Value Level 1 Level 2 Level 3 Netting Adjustment 1 Total Assets Cash and due from banks $ 982 $ 982 $ — $ — $ — $ 982 Interest-bearing deposits 2 — 2 — — 2 Securities purchased under agreements to resell 6,775 — 6,775 — — 6,775 Federal funds sold 2,270 — 2,270 — — 2,270 Trading securities 4,047 — 4,047 — — 4,047 Available-for-sale securities 20,988 — 20,988 — — 20,988 Held-to-maturity securities 6,085 — 6,123 19 — 6,142 Advances 89,173 — 89,212 — — 89,212 Mortgage loans held for portfolio, net 6,755 — 6,792 112 — 6,904 Accrued interest receivable 143 — 143 — — 143 Derivative assets, net 94 — 155 — (61 ) 94 Other assets 19 19 — — — 19 Liabilities Deposits (1,110 ) — (1,110 ) — — (1,110 ) Consolidated obligations Discount notes (98,990 ) — (98,984 ) — — (98,984 ) Bonds (31,208 ) — (31,610 ) — — (31,610 ) Total consolidated obligations (130,198 ) — (130,594 ) — — (130,594 ) Mandatorily redeemable capital stock (103 ) (103 ) — — — (103 ) Accrued interest payable (119 ) — (119 ) — — (119 ) Derivative liabilities, net (102 ) — (705 ) — 603 (102 ) Other Commitments to fund advances — — (1 ) — — (1 ) Standby letters of credit (2 ) — — (2 ) — (2 ) Standby bond purchase agreements — — 2 — — 2 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 September 30, 2016 (dollar s in millions): Recurring Fair Value Measurements Level 1 Level 2 Level 3 Netting Adjustment 1 Total Assets Trading securities Other U.S. obligations $ — $ 229 $ — $ — $ 229 GSE and Tennessee Valley Authority obligations — 3,086 — — 3,086 Other non-MBS — 288 — — 288 GSE multifamily MBS — 474 — — 474 Total trading securities — 4,077 — — 4,077 Available-for-sale securities Other U.S. obligations — 3,703 — — 3,703 GSE and Tennessee Valley Authority obligations — 1,492 — — 1,492 State or local housing agency obligations — 1,022 — — 1,022 Other non-MBS — 296 — — 296 Other U.S. obligations single-family MBS — 3,501 — — 3,501 GSE single-family MBS — 1,356 — — 1,356 GSE multifamily MBS — 11,561 — — 11,561 Total available-for-sale securities — 22,931 — — 22,931 Advances 2 — 2 — — 2 Derivative assets, net Interest-rate related — 228 — (120 ) 108 Mortgage delivery commitments — 1 — — 1 Total derivative assets, net — 229 — (120 ) 109 Other assets 23 — — — 23 Total recurring assets at fair value $ 23 $ 27,239 $ — $ (120 ) $ 27,142 Liabilities Derivative liabilities, net Interest-rate related $ — $ (1,112 ) $ — $ 1,028 $ (84 ) Forward settlement agreements (TBAs) — (1 ) — — (1 ) Total derivative liabilities, net — (1,113 ) — 1,028 (85 ) Total recurring liabilities at fair value $ — $ (1,113 ) $ — $ 1,028 $ (85 ) 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, 2015 (dollars in millions): Recurring Fair Value Measurements Level 1 Level 2 Level 3 Netting Adjustment 1 Total Assets Trading securities Other U.S. obligations $ — $ 237 $ — $ — $ 237 GSE and Tennessee Valley Authority obligations — 3,077 — — 3,077 Other non-MBS — 276 — — 276 GSE multifamily MBS — 457 — — 457 Total trading securities — 4,047 — — 4,047 Available-for-sale securities Other U.S. obligations — 3,985 — — 3,985 GSE and Tennessee Valley Authority obligations — 2,115 — — 2,115 State or local housing agency obligations — 1,047 — — 1,047 Other non-MBS — 278 — — 278 Other U.S. obligations single-family MBS — 2,270 — — 2,270 GSE single-family MBS — 1,605 — — 1,605 GSE multifamily MBS — 9,688 — — 9,688 Total available-for-sale securities — 20,988 — — 20,988 Advances 2 — 8 — — 8 Derivative assets, net Interest-rate related — 155 — (61 ) 94 Other assets 19 — — — 19 Total recurring assets at fair value $ 19 $ 25,198 $ — $ (61 ) $ 25,156 Liabilities Bonds 2 $ — $ (15 ) $ — $ — $ (15 ) Derivative liabilities, net Interest-rate related — (705 ) — 603 (102 ) Total recurring liabilities at fair value $ — $ (720 ) $ — $ 603 $ (117 ) 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. |
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 millions): September 30, 2016 December 31, Impaired mortgage loans held for portfolio 1 $ 10 $ 25 Real estate owned 1 1 1 Total non-recurring assets 1 $ 11 $ 26 1 The fair value information presented for September 30, 2016 is as of the date the fair value adjustment was recorded during the nine months ended September 30, 2016 . The fair value information presented for December 31, 2015 is as of the date the fair value adjustment was recorded during the year ended December 31, 2015. |
Fair Value Option, Quantitative Disclosures, Difference Between Aggregate Fair Value and Aggregate Remaining Contractual Principal Balance Outstanding [Table Text Block] | The following tables summarize the difference between the unpaid principal balance and fair value of outstanding instruments for which the fair value option has been elected (dollars in millions): September 30, 2016 Unpaid Principal Balance Fair Value Fair Value Over (Under) Unpaid Principal Advances 1 $ 2 $ 2 $ — December 31, 2015 Unpaid Principal Balance Fair Value Fair Value Over (Under) Unpaid Principal Advances 1 $ 8 $ 8 $ — Bonds 15 15 — 1 At September 30, 2016 and December 31, 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) | 9 Months Ended |
Sep. 30, 2016 | |
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 millions): September 30, 2016 December 31, 2015 Expire within one year Expire after one year Total Total Standby letters of credit $ 5,880 $ 131 $ 6,011 $ 5,482 Standby bond purchase agreements 98 333 431 560 Commitments to purchase mortgage loans 211 — 211 51 Commitments to issue bonds 54 — 54 — Commitments to issue discount notes — — — 2,500 Commitments to fund advances 204 90 294 145 Other commitments — — — 87 |
Activities with Stockholders (T
Activities with Stockholders (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 millions): September 30, 2016 December 31, 2015 Amount % of Total Amount % of Total Advances $ 2,649 2 $ 1,606 2 Mortgage loans 170 3 151 2 Deposits 25 2 17 2 Capital stock 163 3 120 2 |
Schedule Of Related Party Transactions By Related Party [Tables Text Block] | At September 30, 2016 , the Bank had the following business concentrations with stockholders (dollars in millions): Capital Stock Mortgage Interest Stockholder Amount % of Total 1 Advances Loans Income 2 Wells Fargo Bank, N.A. $ 2,755 43 $ 68,625 $ — $ 278 Superior Guaranty Insurance Company 3 30 1 — 737 — Wells Fargo Bank Northwest, N.A. 3 2 — — 39 — Total $ 2,787 44 $ 68,625 $ 776 $ 278 1 Pursuant to applicable Finance Agency regulations, the Bank's voting structure limits the voting rights of these stockholders and other members holding a significant amount of the Bank's capital stock. 2 Represents interest income earned on advances during the nine months ended September 30, 2016 . Interest income on mortgage loans is excluded from this table as this interest relates to the borrower, not to the stockholder. 3 Superior Guaranty Insurance Company and Wells Fargo Bank Northwest, N.A. are affiliates of Wells Fargo Bank, N.A. At December 31, 2015 , the Bank had the following business concentrations with stockholders (dollars in millions): Capital Stock Mortgage Interest Stockholder Amount % of Total 1 Advances Loans Income 2 Wells Fargo Bank, N.A. $ 1,490 31 $ 37,000 $ — $ 99 Superior Guaranty Insurance Company 3 37 1 — 899 — Wells Fargo Bank Northwest N.A. 3 2 — — 48 — Total $ 1,529 32 $ 37,000 $ 947 $ 99 1 Pursuant to applicable Finance Agency regulations, the Bank's voting structure limits the voting rights of these stockholders and other members holding a significant amount of the Bank's capital stock. 2 Represents interest income earned on advances during the year ended December 31, 2015 . Interest income on mortgage loans is excluded from this table as this interest relates to the borrower, not to the stockholder. 3 Superior Guaranty Insurance Company and Wells Fargo Bank Northwest, N.A. are affiliates of Wells Fargo Bank, N.A. |
Activities with Other FHLBanks
Activities with Other FHLBanks (Tables) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Activities with Other FHLBanks [Abstract] | ||
Schedule of Loans to Other Federal Home Loan Banks [Table Text Block] | The following table summarizes loan activity to other FHLBanks during the nine months ended September 30, 2015 (dollars in millions): Other FHLBank Beginning Balance Advance Principal Repayment Ending Balance 2015 Topeka $ — $ 100 $ (100 ) $ — | |
Schedule of Loans From Other Federal Home Loan Banks [Table Text Block] | The following table summarizes borrowing activity from other FHLBanks during the nine months ended September 30, 2016 and 2015 (dollars in millions): Other FHLBank Beginning Balance Borrowing Principal Payment Ending Balance 2016 San Francisco $ — $ 200 $ (200 ) $ — 2015 Dallas $ — $ 200 $ (200 ) $ — San Francisco — 100 (100 ) — $ — $ 300 $ (300 ) $ — |
Background Information (Details
Background Information (Details) | Sep. 30, 2016bank |
Background Information [Abstract] | |
Number of Federal Home Loan Banks | 11 |
Basis of Presentation (Pro Form
Basis of Presentation (Pro Forma) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Pro Forma [Abstract] | |
Business Acquisition, Pro Forma Revenue | $ 707 |
Business Acquisition, Pro Forma Net Income (Loss) | $ 110 |
Basis of Presentation (Change i
Basis of Presentation (Change in Accounting Principle) (Details) - Accounting Standards Update 2015-03 [Member] - Restatement Adjustment [Member] $ in Millions | Dec. 31, 2015USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Unamortized Debt Issuance Expense | $ 7 |
Consolidated Obligation Discount Notes [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Unamortized Debt Issuance Expense | 4 |
Consolidated Obligation Bonds [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Unamortized Debt Issuance Expense | $ 3 |
Trading Securities (Major Secur
Trading Securities (Major Security Types) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading securities | $ 4,077 | $ 4,047 | |
Other U.S. obligations [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading securities | [1] | 229 | 237 |
GSE obligations [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading securities | 3,086 | 3,077 | |
Other [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading securities | [2] | 288 | 276 |
Non-mortgage-backed securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading securities | 3,603 | 3,590 | |
Multifamily [Member] | Mortgage-backed securities, GSE [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading securities | $ 474 | $ 457 | |
[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 Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Trading Securities [Abstract] | ||||
Trading Securities, Realized Gain (Loss) | $ 0 | $ 0 | $ 0 | $ 0 |
Trading Securities, Change in Unrealized Holding Gain (Loss) | $ (2) | $ 17 | $ 51 | $ 9 |
Available-for-Sale Securities46
Available-for-Sale Securities (Major Security Types) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | [1] | $ 22,968 | $ 21,070 |
Gross Unrealized Gains | 69 | 71 | |
Gross Unrealized Losses | (106) | (153) | |
Fair Value | 22,931 | 20,988 | |
Other U.S. obligations [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | [1],[2] | 3,720 | 4,010 |
Gross Unrealized Gains | [2] | 4 | 4 |
Gross Unrealized Losses | [2] | (21) | (29) |
Fair Value | [2] | 3,703 | 3,985 |
GSE obligations [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | [1] | 1,494 | 2,124 |
Gross Unrealized Gains | 10 | 14 | |
Gross Unrealized Losses | (12) | (23) | |
Fair Value | 1,492 | 2,115 | |
State or local housing agency obligations [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | [1] | 1,023 | 1,048 |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (1) | (1) | |
Fair Value | 1,022 | 1,047 | |
Other [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | [1],[3] | 291 | 276 |
Gross Unrealized Gains | [3] | 5 | 4 |
Gross Unrealized Losses | [3] | 0 | (2) |
Fair Value | [3] | 296 | 278 |
Non-mortgage-backed securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | [1] | 6,528 | 7,458 |
Gross Unrealized Gains | 19 | 22 | |
Gross Unrealized Losses | (34) | (55) | |
Fair Value | 6,513 | 7,425 | |
Mortgage-backed securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | [1] | 16,440 | 13,612 |
Gross Unrealized Gains | 50 | 49 | |
Gross Unrealized Losses | (72) | (98) | |
Fair Value | 16,418 | 13,563 | |
Single Family [Member] | Other U.S. obligations MBS [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | [1],[2] | 3,509 | 2,284 |
Gross Unrealized Gains | [2] | 3 | 0 |
Gross Unrealized Losses | [2] | (11) | (14) |
Fair Value | [2] | 3,501 | 2,270 |
Single Family [Member] | Mortgage-backed securities, GSE [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | [1] | 1,345 | 1,593 |
Gross Unrealized Gains | 11 | 13 | |
Gross Unrealized Losses | 0 | (1) | |
Fair Value | 1,356 | 1,605 | |
Multifamily [Member] | Mortgage-backed securities, GSE [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | [1] | 11,586 | 9,735 |
Gross Unrealized Gains | 36 | 36 | |
Gross Unrealized Losses | (61) | (83) | |
Fair Value | $ 11,561 | $ 9,688 | |
[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/or Private Export Funding Corporation (PEFCO) bonds. |
Available-for-Sale Securities47
Available-for-Sale Securities (Unrealized Losses) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 4,305 | $ 16,711 | |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (10) | (136) | |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 12,054 | 965 | |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (96) | (17) | |
Continuous Unrealized Loss Position, Fair Value | 16,359 | 17,676 | |
Continuous Unrealized Loss Position, Unrealized Losses | (106) | (153) | |
Other U.S. obligations [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | [1] | 20 | 3,645 |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | [1] | 0 | (29) |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | [1] | 3,174 | 0 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | [1] | (21) | 0 |
Continuous Unrealized Loss Position, Fair Value | [1] | 3,194 | 3,645 |
Continuous Unrealized Loss Position, Unrealized Losses | [1] | (21) | (29) |
GSE obligations [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 0 | 1,701 | |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 0 | (23) | |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 942 | 0 | |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (12) | 0 | |
Continuous Unrealized Loss Position, Fair Value | 942 | 1,701 | |
Continuous Unrealized Loss Position, Unrealized Losses | (12) | (23) | |
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 | 684 | 555 | |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (1) | (1) | |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 14 | 6 | |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 0 | 0 | |
Continuous Unrealized Loss Position, Fair Value | 698 | 561 | |
Continuous Unrealized Loss Position, Unrealized Losses | (1) | (1) | |
Other [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | [2] | 97 | |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | [2] | (2) | |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | [2] | 0 | |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | [2] | 0 | |
Continuous Unrealized Loss Position, Fair Value | [2] | 97 | |
Continuous Unrealized Loss Position, Unrealized Losses | [2] | (2) | |
Non-mortgage-backed securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 704 | 5,998 | |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (1) | (55) | |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 4,130 | 6 | |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (33) | 0 | |
Continuous Unrealized Loss Position, Fair Value | 4,834 | 6,004 | |
Continuous Unrealized Loss Position, Unrealized Losses | (34) | (55) | |
Mortgage-backed securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 3,601 | 10,713 | |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (9) | (81) | |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 7,924 | 959 | |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (63) | (17) | |
Continuous Unrealized Loss Position, Fair Value | 11,525 | 11,672 | |
Continuous Unrealized Loss Position, Unrealized Losses | (72) | (98) | |
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 | 2,207 | 8,166 | |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (5) | (66) | |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 6,776 | 926 | |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (56) | (17) | |
Continuous Unrealized Loss Position, Fair Value | 8,983 | 9,092 | |
Continuous Unrealized Loss Position, Unrealized Losses | (61) | (83) | |
Single Family [Member] | Other U.S. obligations MBS [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | [1] | 1,242 | 2,270 |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | [1] | (4) | (14) |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | [1] | 1,122 | 0 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | [1] | (7) | 0 |
Continuous Unrealized Loss Position, Fair Value | [1] | 2,364 | 2,270 |
Continuous Unrealized Loss Position, Unrealized Losses | [1] | (11) | (14) |
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 | 152 | 277 | |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 0 | (1) | |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 26 | 33 | |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 0 | 0 | |
Continuous Unrealized Loss Position, Fair Value | 178 | 310 | |
Continuous Unrealized Loss Position, Unrealized Losses | $ 0 | $ (1) | |
[1] | Represents investment securities backed by the full faith and credit of the U.S. Government. | ||
[2] | Consists of taxable municipal bonds and/or PEFCO bonds. |
Available-for-Sale Securities48
Available-for-Sale Securities (Contractual Maturity) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | [1] | $ 22,968 | $ 21,070 |
Fair Value | 22,931 | 20,988 | |
Non-mortgage-backed securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Contractual Maturities, Due in one year or less, Amortized Cost | 177 | 430 | |
Contractual Maturities, Due in one year or less, Fair Value | 178 | 431 | |
Contractual Maturities, Due after one year through five years, Amortized Cost | 522 | 968 | |
Contractual Maturities, Due after one year through five years, Fair Value | 529 | 978 | |
Contractual Maturities, Due after five years through ten years, Amortized Cost | 4,641 | 4,664 | |
Contractual Maturities, Due after five years through ten years, Fair Value | 4,625 | 4,637 | |
Contractual Maturities, Due after ten years, Amortized Cost | 1,188 | 1,396 | |
Contractual Maturities, Due after ten years, Fair Value | 1,181 | 1,379 | |
Amortized Cost | [1] | 6,528 | 7,458 |
Fair Value | 6,513 | 7,425 | |
Mortgage-backed securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | [1] | 16,440 | 13,612 |
Fair Value | $ 16,418 | $ 13,563 | |
[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 Securities49
Available-for-Sale Securities (Net Gains (Losses) from Sale of AFS Securities) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Available-for-sale Securities [Abstract] | ||||
Proceeds from the sale of AFS securities | $ 0 | $ 0 | $ 287 | $ 0 |
Gross realized gains on sale of AFS securities | $ 0 | $ 0 | $ 0 | $ 0 |
Available-for-Sale Securities50
Available-for-Sale Securities (Prepayment Fees) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Prepayment Fees on Available-for-Sale Securities | $ 2 | $ 3 | $ 5 | $ 3 |
Fair Value Hedging Adjustments on Prepaid Investments | $ (1) | $ (1) | $ (2) | $ (1) |
Held-to-Maturity Securities (Ma
Held-to-Maturity Securities (Major Security Types) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | [1] | $ 4,956 | $ 6,085 |
Accumulated Unrecognized Holding Gain | 108 | 75 | |
Accumulated Unrecognized Holding Loss | (13) | (18) | |
Fair Value | 5,051 | 6,142 | |
GSE obligations [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | [1] | 398 | 401 |
Accumulated Unrecognized Holding Gain | 92 | 57 | |
Accumulated Unrecognized Holding Loss | 0 | (2) | |
Fair Value | 490 | 456 | |
State or local housing agency obligations [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | [1] | 691 | 956 |
Accumulated Unrecognized Holding Gain | 5 | 9 | |
Accumulated Unrecognized Holding Loss | (4) | 0 | |
Fair Value | 692 | 965 | |
Non-mortgage-backed securities [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | [1] | 1,089 | 1,357 |
Accumulated Unrecognized Holding Gain | 97 | 66 | |
Accumulated Unrecognized Holding Loss | (4) | (2) | |
Fair Value | 1,182 | 1,421 | |
Mortgage-backed securities [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | [1] | 3,867 | 4,728 |
Accumulated Unrecognized Holding Gain | 11 | 9 | |
Accumulated Unrecognized Holding Loss | (9) | (16) | |
Fair Value | 3,869 | 4,721 | |
Single Family [Member] | Other U.S. obligations MBS [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | [1],[2] | 30 | 47 |
Accumulated Unrecognized Holding Gain | [2] | 0 | 0 |
Accumulated Unrecognized Holding Loss | [2] | 0 | 0 |
Fair Value | [2] | 30 | 47 |
Single Family [Member] | Mortgage-backed securities, GSE [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | [1] | 3,816 | 4,655 |
Accumulated Unrecognized Holding Gain | 11 | 9 | |
Accumulated Unrecognized Holding Loss | (8) | (15) | |
Fair Value | 3,819 | 4,649 | |
Commercial Mortgage Backed Securities [Member] | Other U.S. obligations MBS [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | [1],[2] | 4 | 6 |
Accumulated Unrecognized Holding Gain | [2] | 0 | 0 |
Accumulated Unrecognized Holding Loss | [2] | 0 | 0 |
Fair Value | [2] | 4 | 6 |
Residential Mortgage Backed Securities [Member] | Mortgage-backed securities, Private-label [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | [1] | 17 | 20 |
Accumulated Unrecognized Holding Gain | 0 | 0 | |
Accumulated Unrecognized Holding Loss | (1) | (1) | |
Fair Value | $ 16 | $ 19 | |
[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 Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 2,414 | $ 3,286 | |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (10) | (17) | |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 511 | 33 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (3) | (1) | |
Continuous Unrealized Loss Position, Fair Value | 2,925 | 3,319 | |
Continuous Unrealized Loss Position, Unrealized Losses | (13) | (18) | |
GSE obligations [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 96 | ||
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (2) | ||
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 | ||
Continuous Unrealized Loss Position, Unrealized Losses | (2) | ||
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 | 279 | 93 | |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (4) | 0 | |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 5 | 0 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 | |
Continuous Unrealized Loss Position, Fair Value | 284 | 93 | |
Continuous Unrealized Loss Position, Unrealized Losses | (4) | 0 | |
Non-mortgage-backed securities [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 279 | 189 | |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (4) | (2) | |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 5 | 0 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 | |
Continuous Unrealized Loss Position, Fair Value | 284 | 189 | |
Continuous Unrealized Loss Position, Unrealized Losses | (4) | (2) | |
Mortgage-backed securities [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 2,135 | 3,097 | |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (6) | (15) | |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 506 | 33 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (3) | (1) | |
Continuous Unrealized Loss Position, Fair Value | 2,641 | 3,130 | |
Continuous Unrealized Loss Position, Unrealized Losses | (9) | (16) | |
Commercial Mortgage Backed Securities [Member] | Other U.S. obligations MBS [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | [1] | 1 | 5 |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | [1] | 0 | 0 |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | [1] | 2 | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | [1] | 0 | 0 |
Continuous Unrealized Loss Position, Fair Value | [1] | 3 | 5 |
Continuous Unrealized Loss Position, Unrealized Losses | [1] | 0 | 0 |
Single Family [Member] | Other U.S. obligations MBS [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | [1] | 29 | 40 |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | [1] | 0 | 0 |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | [1] | 0 | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | [1] | 0 | 0 |
Continuous Unrealized Loss Position, Fair Value | [1] | 29 | 40 |
Continuous Unrealized Loss Position, Unrealized Losses | [1] | 0 | 0 |
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 | 2,105 | 3,052 | |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (6) | (15) | |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 493 | 20 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (2) | 0 | |
Continuous Unrealized Loss Position, Fair Value | 2,598 | 3,072 | |
Continuous Unrealized Loss Position, Unrealized Losses | (8) | (15) | |
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 | 11 | 13 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1) | (1) | |
Continuous Unrealized Loss Position, Fair Value | 11 | 13 | |
Continuous Unrealized Loss Position, Unrealized Losses | $ (1) | $ (1) | |
[1] | Represents investment securities backed by the full faith and credit of the U.S. Government. |
Held-to-Maturity Securities (Co
Held-to-Maturity Securities (Contractual Maturity) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | [1] | $ 4,956 | $ 6,085 |
Fair Value | 5,051 | 6,142 | |
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 | 11 | 18 | |
Held-to-maturity Securities, Debt Maturities, Next Rolling Twelve Months, Fair Value | 11 | 18 | |
Held-to-maturity Securities, Debt Maturities, Rolling Year Two Through Five, Amortized Cost | 62 | 131 | |
Held-to-maturity Securities, Debt Maturities, Rolling Year Two Through Five, Fair Value | 62 | 131 | |
Held-to-maturity Securities, Debt Maturities, Rolling Year Six Through Ten, Amortized Cost | 368 | 409 | |
Held-to-maturity Securities, Debt Maturities, Rolling Year Six Through Ten, Fair Value | 418 | 440 | |
Held-to-maturity Securities, Debt Maturities, Rolling after Ten Years, Amortized Cost | 648 | 799 | |
Held-to-maturity Securities, Debt Maturities, Rolling after Ten Years, Fair Value | 691 | 832 | |
Amortized Cost | [1] | 1,089 | 1,357 |
Fair Value | 1,182 | 1,421 | |
Mortgage-backed securities [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | [1] | 3,867 | 4,728 |
Fair Value | $ 3,869 | $ 4,721 | |
[1] | Amortized cost includes adjustments made to the cost basis of an investment for accretion and/or amortization. |
Other-Than-Temporary Impairme54
Other-Than-Temporary Impairment (Details) - Mortgage-backed securities, Private-label [Member] - Residential Mortgage Backed Securities [Member] | Sep. 30, 2016 |
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 | (1.00%) |
Projected House Price Increase (Decrease) Rate For Vast Majority Of Markets | 3.00% |
Maximum [Member] | |
Other than Temporary Impairment, Disclosure [Line Items] | |
Projected House Price Increase (Decrease) Rate | 10.00% |
Projected House Price Increase (Decrease) Rate For Vast Majority Of Markets | 6.00% |
Advances (Narrative) (Details)
Advances (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, Advances, Par Value | $ 125,522 | $ 88,911 |
Federal Home Loan Bank, Advances, Callable Option [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, Advances, Par Value | 78,600 | 54,800 |
Federal Home Loan Bank, Advances, Putable Option [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, Advances, Par Value | $ 2,100 | $ 2,600 |
Advances (Redemption Terms) (De
Advances (Redemption Terms) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Advances [Abstract] | ||
Overdrawn demand deposit accounts | $ 5 | $ 1 |
Weighted Average Interest Rate on Overdrawn Demand Deposit | 3.45% | 3.34% |
Due in one year or less | $ 20,759 | $ 18,967 |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate, Maturing in Next Twelve Rolling Months | 0.86% | 0.77% |
Due after one year through two years | $ 30,944 | $ 8,608 |
Federal Home Loan Bank Advances, Weighted Average Interest Rate, Maturing in Rolling Year Two | 1.02% | 1.48% |
Due after two years through three years | $ 23,587 | $ 18,517 |
Federal Home Loan Bank Advances, Weighted Average Interest Rate, Maturing in Rolling Year Three | 0.88% | 0.93% |
Due after three years through four years | $ 6,862 | $ 17,439 |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate, Maturing in Rolling Year Four | 1.10% | 0.60% |
Due after four years through five years | $ 28,837 | $ 16,521 |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate, Maturing in Rolling Year Five | 0.82% | 0.74% |
Thereafter | $ 14,528 | $ 8,858 |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate, Maturing after Rolling Year Five | 0.96% | 1.36% |
Federal Home Loan Bank, Advances, Par Value | $ 125,522 | $ 88,911 |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate | 0.92% | 0.89% |
Premiums | $ 94 | $ 128 |
Discounts | (7) | (9) |
Fair value hedging adjustments | 219 | 143 |
Total | 125,828 | 89,173 |
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Call Date, in Next Rolling Twelve Months | 95,329 | 73,242 |
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Next Rolling Twelve Months | 22,179 | 21,156 |
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Call Date, in Rolling Year Two | 10,922 | 4,513 |
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Rolling Year Two | 29,756 | 7,549 |
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Call Date, in Rolling Year Three | 9,437 | 4,377 |
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Rolling Year Three | 23,547 | 17,576 |
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Call Date, in Rolling Year Four | 2,446 | 2,337 |
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Rolling Year Four | 6,862 | 17,439 |
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Call Date, in Rolling Year Five | 5,329 | 1,818 |
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Rolling Year Five | 28,673 | 16,521 |
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Call Date, after Rolling Year Five | 2,054 | 2,623 |
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Put or Convert Date, after Rolling Year Five | $ 14,500 | $ 8,669 |
Advances (Prepayment Fees) (Det
Advances (Prepayment Fees) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Advances [Abstract] | |||||
Prepayment fee income | $ 2 | $ 0 | $ 11 | $ 14 | |
Fair value hedging adjustments | [1] | (1) | 0 | (5) | (5) |
Prepayment fees on advances, net | $ 1 | $ 0 | $ 6 | $ 9 | |
[1] | Represents the amortization/accretion of fair value hedging adjustments on closed advance hedge relationships resulting from advance prepayments. |
Mortgage Loans Held for Portf58
Mortgage Loans Held for Portfolio (Mortgage Loans Held for Portfolio) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Mortgage Loans on Real Estate [Line Items] | |||
Unpaid principal balance | $ 6,697 | $ 6,663 | |
Premiums | 95 | 94 | |
Discounts | (9) | (10) | |
Basis adjustments from mortgage loan commitments | 11 | 9 | |
Total mortgage loans held for portfolio | 6,794 | 6,756 | |
Allowance for credit losses | (2) | (1) | |
Total mortgage loans held for portfolio, net | 6,792 | 6,755 | |
Single Family [Member] | Fixed rate, long-term single family mortgages [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Unpaid principal balance | 5,517 | 5,384 | |
Single Family [Member] | Fixed rate, medium-term single family mortgages [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Unpaid principal balance | [1] | 1,180 | 1,279 |
Mortgage Partnership Finance Program [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Unpaid principal balance | 6,269 | 6,149 | |
Premiums | 81 | 76 | |
Discounts | (8) | (9) | |
Basis adjustments from mortgage loan commitments | 11 | 9 | |
Total mortgage loans held for portfolio | 6,353 | 6,225 | |
Allowance for credit losses | (2) | (1) | |
Total mortgage loans held for portfolio, net | 6,351 | 6,224 | |
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 | 5,097 | 4,884 | |
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] | 1,172 | 1,265 |
Mortgage Purchase Program [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Unpaid principal balance | 428 | 514 | |
Premiums | 14 | 18 | |
Discounts | (1) | (1) | |
Basis adjustments from mortgage loan commitments | 0 | 0 | |
Total mortgage loans held for portfolio | 441 | 531 | |
Allowance for credit losses | 0 | 0 | |
Total mortgage loans held for portfolio, net | 441 | 531 | |
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 | 420 | 500 | |
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] | $ 8 | $ 14 |
[1] | Medium-term is defined as a term of 15 years or less. |
Mortgage Loans Held for Portf59
Mortgage Loans Held for Portfolio (Mortgage Loans Held for Portfolio by Collateral or Guarantee Type) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | $ 6,697 | $ 6,663 |
Mortgage Partnership Finance Program [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | 6,269 | 6,149 |
Mortgage Purchase Program [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | 428 | 514 |
Conventional Mortgage Loan [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | 6,131 | 6,066 |
Conventional Mortgage Loan [Member] | Mortgage Partnership Finance Program [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | 5,747 | 5,602 |
Conventional Mortgage Loan [Member] | Mortgage Purchase Program [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | 384 | 464 |
Loans Insured or Guaranteed by US Government Authorities [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | 566 | 597 |
Loans Insured or Guaranteed by US Government Authorities [Member] | Mortgage Partnership Finance Program [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | 522 | 547 |
Loans Insured or Guaranteed by US Government Authorities [Member] | Mortgage Purchase Program [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | $ 44 | $ 50 |
Allowance for Credit Losses (Na
Allowance for Credit Losses (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Allowance for Credit Losses [Abstract] | ||
Real Estate Acquired Through Foreclosure | $ 5 | $ 7 |
Allowance for Credit Losses (Al
Allowance for Credit Losses (Allowance and Recorded Investment by Impairment Methodology) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Allowance | $ 2 | $ 1 | |
Financing Receivable, Gross | [1] | 6,828 | 6,791 |
Conventional Mortgage Loan [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 2 | 1 | |
Financing Receivable, Collectively Evaluated for Impairment | [2] | 6,190 | 6,108 |
Financing Receivable, Individually Evaluated for Impairment | [2] | 55 | 68 |
Financing Receivable, Gross | [2] | 6,245 | 6,176 |
Mortgage Purchase Program [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Allowance | 0 | 0 | |
Mortgage Purchase Program [Member] | Conventional Mortgage Loan [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | [3] | 0 | 0 |
Financing Receivable, Collectively Evaluated for Impairment | [2],[3] | 372 | 449 |
Financing Receivable, Individually Evaluated for Impairment | [2],[3] | 25 | 31 |
Financing Receivable, Gross | [1],[2],[3] | 397 | 480 |
Mortgage Partnership Finance Program [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Allowance | 2 | 1 | |
Mortgage Partnership Finance Program [Member] | Conventional Mortgage Loan [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 2 | 1 | |
Financing Receivable, Collectively Evaluated for Impairment | [2] | 5,818 | 5,659 |
Financing Receivable, Individually Evaluated for Impairment | [2] | 30 | 37 |
Financing Receivable, Gross | [1],[2] | $ 5,848 | $ 5,696 |
[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. | ||
[3] | The allowance for credit losses on MPP loans was less than $1 million at September 30, 2016 and December 31, 2015. |
Allowance for Credit Losses (Cr
Allowance for Credit Losses (Credit Quality Indicators) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | ||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total past due loans | $ 174 | $ 200 | ||
Total current loans | 6,654 | 6,591 | ||
Total recorded investment | [1] | 6,828 | 6,791 | |
In process of foreclosure | [2] | $ 25 | $ 32 | |
Serious delinquency rate | [3] | 1.00% | 1.00% | |
Past due 90 days or more and still accruing interest | [4] | $ 12 | $ 14 | |
Non-accrual mortgage loans | [5] | 63 | 78 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total past due loans | 87 | 96 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total past due loans | 27 | 29 | ||
Financing Receivables, 90 to 179 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total past due loans | 19 | 21 | ||
Financing Receivables, Greater than 180 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total past due loans | 41 | 54 | ||
Conventional Mortgage Loan [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total recorded investment | [6] | 6,245 | 6,176 | |
Mortgage Partnership Finance Program [Member] | Conventional Mortgage Loan [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total past due loans | 98 | 115 | ||
Total current loans | 5,750 | 5,581 | ||
Total recorded investment | [1],[6] | 5,848 | 5,696 | |
In process of foreclosure | [2] | $ 16 | $ 19 | |
Serious delinquency rate | [3] | 1.00% | 1.00% | |
Past due 90 days or more and still accruing interest | [4] | $ 0 | $ 0 | |
Non-accrual mortgage loans | [5] | 37 | 46 | |
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 | 52 | 57 | ||
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 | 13 | 16 | ||
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 | 10 | 12 | ||
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 | 23 | 30 | ||
Mortgage Partnership Finance Program [Member] | Loans Insured or Guaranteed by US Government Authorities [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total past due loans | 36 | 38 | ||
Total current loans | 500 | 524 | ||
Total recorded investment | [1] | 536 | 562 | |
In process of foreclosure | [2] | $ 2 | $ 4 | |
Serious delinquency rate | [3] | 2.00% | 2.00% | |
Past due 90 days or more and still accruing interest | [4] | $ 9 | $ 10 | |
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 | 19 | 21 | ||
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 | 8 | 7 | ||
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 | 5 | 5 | ||
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 | 5 | ||
Mortgage Purchase Program [Member] | Conventional Mortgage Loan [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total past due loans | 31 | 36 | ||
Total current loans | 366 | 444 | ||
Total recorded investment | [1],[6],[7] | 397 | 480 | |
In process of foreclosure | $ 7 | $ 9 | [2] | |
Serious delinquency rate | [3] | 4.00% | 4.00% | |
Past due 90 days or more and still accruing interest | [4] | $ 0 | $ 0 | |
Non-accrual mortgage loans | [5] | 26 | 32 | |
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 | 12 | 13 | ||
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 | 4 | 4 | ||
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 | 3 | ||
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 | 12 | 16 | ||
Mortgage Purchase Program [Member] | Loans Insured or Guaranteed by US Government Authorities [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total past due loans | 9 | 11 | ||
Total current loans | 38 | 42 | ||
Total recorded investment | [1] | 47 | 53 | |
In process of foreclosure | [2] | $ 0 | $ 0 | |
Serious delinquency rate | [3] | 7.00% | 8.00% | |
Past due 90 days or more and still accruing interest | [4] | $ 3 | $ 4 | |
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 | 4 | 5 | ||
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 | 2 | 2 | ||
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 | 1 | ||
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 | $ 2 | $ 3 | ||
[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. | |||
[7] | The allowance for credit losses on MPP loans was less than $1 million at September 30, 2016 and December 31, 2015. |
Allowance for Credit Losses (In
Allowance for Credit Losses (Individually Evaluated Impaired Loans) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Impaired Financing Receivable, Interest Income, Accrual Method | $ 0 | $ 0 | $ 0 | $ 0 |
Conventional Mortgage Loan [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Impaired Financing Receivable, Average Recorded Investment | 57 | 74 | 61 | 60 |
Mortgage Partnership Finance Program [Member] | Conventional Mortgage Loan [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 32 | 41 | 34 | 45 |
Mortgage Purchase Program [Member] | Conventional Mortgage Loan [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | $ 25 | $ 33 | $ 27 | $ 15 |
Derivatives and Hedging Activ64
Derivatives and Hedging Activities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | $ 900 | $ 900 | $ 500 | ||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | 0 | $ 0 | ||
Amortization and Accretion of Off-Market Derivatives | $ 7 | $ 10 | $ 23 | $ 13 |
Derivatives and Hedging Activ65
Derivatives and Hedging Activities (Derivatives in Statement of Condition) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Derivatives, Fair Value [Line Items] | |||
Notional Amount of Derivatives | $ 51,097 | $ 39,278 | |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 229 | 155 | |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 1,113 | 705 | |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [1],[2] | (120) | (61) |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | [1],[2] | (1,028) | (603) |
Derivative assets, net | 109 | 94 | |
Derivative liabilities, net | 85 | 102 | |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount of Derivatives | 49,271 | 37,526 | |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 206 | 134 | |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 993 | 635 | |
Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount of Derivatives | 1,826 | 1,752 | |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 23 | 21 | |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 120 | 70 | |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount of Derivatives | 1,411 | 1,456 | |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 22 | 21 | |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 119 | 70 | |
Not Designated as Hedging Instrument [Member] | Interest Rate Swaption [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount of Derivatives | 0 | 200 | |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | 0 | |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 0 | 0 | |
Mortgage-backed securities [Member] | Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount of Derivatives | 204 | 45 | |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | 0 | |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 1 | 0 | |
Mortgages [Member] | Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount of Derivatives | 211 | 51 | |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 1 | 0 | |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | $ 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 $0.9 billion and $0.5 billion at September 30, 2016 and December 31, 2015. At September 30, 2016 and December 31, 2015, the Bank had not received any cash collateral from clearing agents and/or counterparties. |
Derivatives and Hedging Activ66
Derivatives and Hedging Activities (Derivatives in Statement of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives Designated as Hedging Instruments, Gain (Loss), Net | $ (7) | $ (6) | $ (16) | $ 1 |
Derivatives Not Designated as Hedging Instruments, Gain (Loss), Net | 4 | (37) | (60) | (40) |
Net gains (losses) on derivatives and hedging activities | (3) | (43) | (76) | (39) |
Interest Rate Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives Designated as Hedging Instruments, Gain (Loss), Net | (7) | (6) | (16) | 1 |
Derivatives Not Designated as Hedging Instruments, Gain (Loss), Net | 10 | (32) | (45) | (24) |
Net Interest Settlements [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives Not Designated as Hedging Instruments, Gain (Loss), Net | (5) | (5) | (14) | (16) |
Mortgage-backed securities [Member] | Forward Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives Not Designated as Hedging Instruments, Gain (Loss), Net | (2) | (1) | (5) | (1) |
Mortgages [Member] | Forward Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives Not Designated as Hedging Instruments, Gain (Loss), Net | $ 1 | $ 1 | $ 4 | $ 1 |
Derivatives and Hedging Activ67
Derivatives and Hedging Activities (Derivatives in Statement of Income and Impact on Interest) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (Losses) on Derivatives | $ 61 | $ (261) | $ (369) | $ (151) | |
Gains (Losses) on Hedged Items | (68) | 255 | 353 | 152 | |
Net Fair Value Hedge Ineffectiveness | (7) | (6) | (16) | 1 | |
Effect on Net Interest Income | [1] | (47) | (60) | (165) | (154) |
Available-for-sale Securities [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (Losses) on Derivatives | 69 | (241) | (335) | (161) | |
Gains (Losses) on Hedged Items | (82) | 238 | 319 | 161 | |
Net Fair Value Hedge Ineffectiveness | (13) | (3) | (16) | 0 | |
Effect on Net Interest Income | [1] | (36) | (44) | (110) | (111) |
Advances [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (Losses) on Derivatives | [2] | 95 | (91) | (83) | (58) |
Gains (Losses) on Hedged Items | [2] | (95) | 90 | 84 | 59 |
Net Fair Value Hedge Ineffectiveness | [2] | 0 | (1) | 1 | 1 |
Effect on Net Interest Income | [1],[2] | (34) | (48) | (111) | (130) |
Consolidated Obligation Bonds [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (Losses) on Derivatives | (103) | 71 | 49 | 68 | |
Gains (Losses) on Hedged Items | 109 | (73) | (50) | (68) | |
Net Fair Value Hedge Ineffectiveness | 6 | (2) | (1) | 0 | |
Effect on Net Interest Income | [1] | $ 23 | $ 32 | $ 56 | $ 87 |
[1] | Represents the net interest settlements on derivatives in fair value hedge relationships and the amortization of the financing element of off-market derivatives, both of which are included in the interest income or interest expense line item of the respective hedged item type. This amortization for off-market derivatives totaled $7 million and $23 million for the three and nine months ended September 30, 2016. The amortization totaled $10 million and $13 million for the three and nine months ended September 30, 2015. | ||||
[2] | Includes net gains (losses) on fair value hedge firm commitments of forward starting advances. |
Derivatives and Hedging Activ68
Derivatives and Hedging Activities (Credit Risk Exposure) (Details) $ in Millions | Sep. 30, 2016USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative, Net Liability Position, Aggregate Fair Value | $ 431 |
Collateral Already Posted, Aggregate Fair Value | 352 |
Additional Collateral, Aggregate Fair Value | $ 71 |
Derivatives and Hedging Activ69
Derivatives and Hedging Activities (Offsetting of Derivative Assets and Derivative Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Offsetting Assets and Liabilities [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | $ 228 | $ 155 | |
Derivative Liability, Fair Value, Gross Liability | 1,113 | 705 | |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [1],[2] | 120 | 61 |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | [1],[2] | (1,028) | (603) |
Derivative Asset, Net Fair Value Amount, After Offsetting Adjustment | 108 | 94 | |
Derivative Liability, Net Fair Value Amount, After Offsetting Adjustment | 85 | 102 | |
Derivative assets, net | 109 | 94 | |
Derivative liabilities, net | 85 | 102 | |
Over the Counter [Member] | |||
Offsetting Assets and Liabilities [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 112 | 110 | |
Derivative Liability, Fair Value, Gross Liability | 543 | 406 | |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 106 | 109 | |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (458) | (304) | |
Derivative Asset, Net Fair Value Amount, After Offsetting Adjustment | 6 | 1 | |
Derivative Liability, Net Fair Value Amount, After Offsetting Adjustment | 85 | 102 | |
Derivative assets, net | 7 | 1 | |
Derivative liabilities, net | 85 | 102 | |
Derivative Asset, Not Subject to Master Netting Arrangement | [3] | 1 | 0 |
Derivative Liability, Not Subject to Master Netting Arrangement | [3] | 0 | 0 |
Exchange Cleared [Member] | |||
Offsetting Assets and Liabilities [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 116 | 45 | |
Derivative Liability, Fair Value, Gross Liability | 570 | 299 | |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 14 | 48 | |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (570) | (299) | |
Derivative Asset, Net Fair Value Amount, After Offsetting Adjustment | 102 | 93 | |
Derivative Liability, Net Fair Value Amount, After Offsetting Adjustment | 0 | 0 | |
Derivative assets, net | 102 | 93 | |
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 $0.9 billion and $0.5 billion at September 30, 2016 and December 31, 2015. At September 30, 2016 and December 31, 2015, the Bank had not received any cash collateral from clearing agents and/or counterparties. | ||
[3] | Represents mortgage delivery commitments that are not subject to an enforceable netting agreement. |
Consolidated Obligations Narrat
Consolidated Obligations Narrative (Details) - USD ($) $ in Billions | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Short-term and Long-term Debt [Line Items] | ||
Obligation with Joint and Several Liability Arrangement, Amount Outstanding | $ 801 | $ 775.2 |
FHLBanks [Member] | ||
Schedule of Short-term and Long-term Debt [Line Items] | ||
Obligation with Joint and Several Liability Arrangement, Amount Outstanding | $ 967.7 | $ 905.2 |
Consolidated Obligations Discou
Consolidated Obligations Discount Notes (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Short-term Debt [Line Items] | |||
Total | $ 84,481 | $ 98,990 | |
Consolidated Obligation Discount Notes [Member] | |||
Short-term Debt [Line Items] | |||
Par value | $ 84,550 | $ 99,074 | |
Par Value, Weighted Average Interest Rate | 0.41% | 0.31% | |
Discounts and concessions | [1] | $ (69) | $ (84) |
[1] | Concessions represent fees paid to dealers in connections with the issuance of certain consolidated obligation discount notes. |
Consolidated Obligations Bonds
Consolidated Obligations Bonds (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Total | $ 82,454 | $ 31,208 | |
Consolidated Obligation Bonds [Member] | |||
Debt Instrument [Line Items] | |||
Due in one year or less | $ 42,966 | $ 15,676 | |
Due in one year or less, Weighted Average Interest Rate | 0.74% | 0.78% | |
Due after one year through two years | $ 19,344 | $ 3,808 | |
Due after one year through two years, Weighted Average Interest Rate | 0.97% | 2.91% | |
Due after two years through three years | $ 7,849 | $ 1,604 | |
Due after two years through three years, Weighted Average Interest Rate | 1.61% | 2.13% | |
Due after three years through four years | $ 2,833 | $ 2,780 | |
Due after three years through four years, Weighted Average Interest Rate | 2.39% | 2.93% | |
Due after four years through five years | $ 4,783 | $ 2,243 | |
Due after four years through five years, Weighted Average Interest Rate | 1.81% | 3.35% | |
Thereafter | $ 4,404 | $ 4,788 | |
Thereafter, Weighted Average Interest Rate | 3.02% | 3.08% | |
Total par value | $ 82,179 | $ 30,899 | |
Total par value, Weighted Average Interest Rate | 1.12% | 1.85% | |
Premiums | $ 271 | $ 312 | |
Discounts and concessions | [1] | (67) | (35) |
Fair value hedging adjustments | 71 | 32 | |
Total | $ 82,454 | $ 31,208 | |
[1] | Concessions represent fees paid to dealers in connections with the issuance of certain consolidated obligation bonds. |
Consolidated Obligations Bond73
Consolidated Obligations Bonds by Call Features (Details) - Consolidated Obligation Bonds [Member] - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Total par value | $ 82,179 | $ 30,899 |
Noncallable or Nonputable [Member] | ||
Debt Instrument [Line Items] | ||
Total par value | 79,870 | 28,050 |
Callable [Member] | ||
Debt Instrument [Line Items] | ||
Total par value | $ 2,309 | $ 2,849 |
Capital (Narrative) (Details)
Capital (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||||||
Excess Capital | $ 0 | $ 0 | $ 0 | ||||||||
Net Shares Reclassified to Mandatorily Redeemable Capital Stock, Value | $ 1,000,000 | $ 14,000,000 | $ 732,000,000 | $ (75,000,000) | |||||||
Common Stock, Par or Stated Value Per Share | $ 100 | $ 100 | $ 100 | ||||||||
Number of Subclasses of Capital Stock | 2 | 2 | |||||||||
Number of Finance Agency Regulatory Capital Requirements | 3 | 3 | |||||||||
Weight Applied to Permanent Capital in Computing Leverage Ratio | 1.5 | 1.5 | |||||||||
Weight Applied to Nonpermanent Capital in Computing Leverage Ratio | 1 | 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% | 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% | 4.00% | |||||||||
Redemption Period Under FHLBank Capital Plan | 5 years | ||||||||||
Mandatorily redeemable capital stock | $ 675,000,000 | [1] | 106,000,000 | $ 675,000,000 | [1] | 106,000,000 | $ 698,000,000 | $ 103,000,000 | [1] | $ 119,000,000 | $ 24,000,000 |
Additional capital from merger | $ 92,000,000 | 92,000,000 | 194,000,000 | ||||||||
Dividends, Common Stock, Cash | $ (102,000,000) | (75,000,000) | |||||||||
Quarterly Net Income Allocated to Restricted Retained Earnings | 20.00% | 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 | $ 200,000,000 | $ 200,000,000 | $ 101,000,000 | ||||||||
Interest Expense, Capital Securities | 6,000,000 | $ 1,000,000 | 15,000,000 | 2,000,000 | |||||||
Maximum [Member] | |||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||||||
Federal Home Loan Banks, Membership Requirements, Capital Stock | 10,000,000 | 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 | 10,000 | |||||||||
Additional Capital from Merger [Member] | |||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||||||
Dividends, Common Stock, Cash | (102,000,000) | $ (25,000,000) | |||||||||
Captive Insurance Companies [Member] | |||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||||||
Net Shares Reclassified to Mandatorily Redeemable Capital Stock, Value | $ 723,000,000 | ||||||||||
[1] | At the Bank's election, the mandatorily redeemable capital stock may be redeemed prior to the expiration of the five year redemption period that commences on the date of the notice of redemption, or in the case of captive insurance company members, on the date of the membership termination. |
Capital (Rollforward of MRCS) (
Capital (Rollforward of MRCS) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |||
MRCS [Abstract] | ||||||
Beginning Balance | $ 698 | $ 119 | $ 103 | [1] | $ 24 | |
Noncash or Part Noncash Acquisition, MRCS Assumed | 0 | 725 | ||||
Net Shares Reclassified to Mandatorily Redeemable Capital Stock, Value | 1 | 14 | 732 | (75) | ||
Financial Instruments Subject To Mandatory Redemption Repurchases | (24) | (27) | (160) | (568) | ||
Ending Balance | $ 675 | [1] | $ 106 | $ 675 | [1] | $ 106 |
[1] | At the Bank's election, the mandatorily redeemable capital stock may be redeemed prior to the expiration of the five year redemption period that commences on the date of the notice of redemption, or in the case of captive insurance company members, on the date of the membership termination. |
Capital (Mandatorily Redeemable
Capital (Mandatorily Redeemable Capital Stock) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |||
MRCS [Abstract] | |||||||||
Financial Instruments Subject to Mandatory Redemption, Redeemable within One year | [1] | $ 4 | $ 7 | ||||||
Financial Instruments Subject to Mandatory Redemption, Redeemable in Year Two | [1] | 5 | 4 | ||||||
Financial Instruments Subject to Mandatory Redemption, Redeemable in Year Three | [1] | 0 | 65 | ||||||
Financial Instruments Subject to Mandatory Redemption, Redeemable in Year Four | [1] | 4 | 4 | ||||||
Financial Instruments Subject to Mandatory Redemption, Redeemable in Year Five | [1] | 2 | 0 | ||||||
Financial Instruments Subject to Mandatory Redemption, Redeemable After Year Five | [1],[2] | 639 | 0 | ||||||
Financial Instruments Subject to Mandatory Redemption, Past Contractual Redemption Date, Due to Outstanding Activity | [1] | 21 | 23 | ||||||
Mandatorily redeemable capital stock | $ 675 | [1] | $ 698 | $ 103 | [1] | $ 106 | $ 119 | $ 24 | |
[1] | At the Bank's election, the mandatorily redeemable capital stock may be redeemed prior to the expiration of the five year redemption period that commences on the date of the notice of redemption, or in the case of captive insurance company members, on the date of the membership termination. | ||||||||
[2] | Represents mandatorily redeemable capital stock resulting from the Finance Agency rule previously discussed that makes captive insurance companies ineligible for FHLBank membership. The related mandatorily redeemable capital stock is not required to be redeemed until five years after the member's termination. |
Capital (Accumulated Other Comp
Capital (Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | $ (84) | |||
Other comprehensive income (loss) before reclassifications, Net unrealized losses | $ 46 | $ (120) | 45 | $ (122) |
Total other comprehensive income (loss) | 46 | (121) | 45 | (122) |
Ending Balance | (39) | (39) | ||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | (83) | 124 | (82) | 126 |
Other comprehensive income (loss) before reclassifications, Net unrealized losses | 46 | (120) | 45 | (122) |
Total other comprehensive income (loss) | 46 | (120) | 45 | (122) |
Ending Balance | (37) | 4 | (37) | 4 |
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | (2) | (2) | (2) | (3) |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax | (1) | |||
Total other comprehensive income (loss) | 0 | (1) | 0 | 0 |
Ending Balance | (2) | (3) | (2) | (3) |
Accumulated Other Comprehensive Income [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | (85) | 122 | (84) | 123 |
Other comprehensive income (loss) before reclassifications, Net unrealized losses | 46 | (120) | 45 | (122) |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax | (1) | |||
Total other comprehensive income (loss) | 46 | (121) | 45 | (122) |
Ending Balance | $ (39) | $ 1 | $ (39) | $ 1 |
Capital (Regulatory Capital Req
Capital (Regulatory Capital Requirements) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Capital [Abstract] | ||
Federal Home Loan Bank, Risk-Based Capital, Required | $ 939 | $ 951 |
Federal Home Loan Bank, Risk-Based Capital, Actual | 7,627 | 5,618 |
Federal Home Loan Bank, Regulatory Capital, Required | 7,043 | 5,495 |
Federal Home Loan Bank, Regulatory Capital, Actual | 7,719 | 5,812 |
Federal Home Loan Bank, Leverage Capital, Required | 8,804 | 6,869 |
Federal Home Loan Bank, Leverage Capital, Actual | $ 11,533 | $ 8,621 |
Regulatory Capital Ratio, Required | 4.00% | 4.00% |
Federal Home Loan Bank, Regulatory Capital Ratio, Actual | 4.38% | 4.23% |
Leverage Ratio, Required | 5.00% | 5.00% |
Federal Home Loan Bank, Leverage Ratio, Actual | 6.55% | 6.28% |
Fair Value (Carrying Value and
Fair Value (Carrying Value and Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |||
Assets | |||||||||
Cash and due from banks | $ 245 | $ 982 | |||||||
Trading securities | 4,077 | 4,047 | |||||||
Available-for-sale securities | 22,931 | 20,988 | |||||||
Held-to-maturity securities | 4,956 | 6,085 | |||||||
Held-to-Maturity Securities, Fair Value | 5,051 | 6,142 | |||||||
Accrued interest receivable | 187 | 143 | |||||||
Derivative assets, net | 109 | 94 | |||||||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [1],[2] | (120) | (61) | ||||||
Liabilities | |||||||||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | [1],[2] | 1,028 | 603 | ||||||
Mandatorily redeemable capital stock | (675) | [3] | $ (698) | (103) | [3] | $ (106) | $ (119) | $ (24) | |
Accrued interest payable | (181) | (119) | |||||||
Derivative liabilities, net | (85) | (102) | |||||||
Reported Value Measurement [Member] | |||||||||
Assets | |||||||||
Cash and due from banks | 245 | 982 | |||||||
Interest-bearing deposits | 2 | 2 | |||||||
Securities purchased under agreements to resell | 6,250 | 6,775 | |||||||
Federal funds sold | 4,635 | 2,270 | |||||||
Trading securities | 4,077 | 4,047 | |||||||
Available-for-sale securities | 22,931 | 20,988 | |||||||
Held-to-maturity securities | 4,956 | 6,085 | |||||||
Advances | 125,828 | 89,173 | |||||||
Mortgage loans held for portfolio, net | 6,792 | 6,755 | |||||||
Accrued interest receivable | 187 | 143 | |||||||
Derivative assets, net | 109 | 94 | |||||||
Other assets | 23 | 19 | |||||||
Liabilities | |||||||||
Deposits | (1,033) | (1,110) | |||||||
Federal Home Loan Bank, Consolidated Obligations Fair Value Disclosure | (166,935) | (130,198) | |||||||
Mandatorily redeemable capital stock | (675) | (103) | |||||||
Accrued interest payable | (181) | (119) | |||||||
Derivative liabilities, net | (85) | (102) | |||||||
Fair Value [Member] | |||||||||
Assets | |||||||||
Cash and due from banks | 245 | 982 | |||||||
Interest-bearing deposits | 2 | 2 | |||||||
Securities purchased under agreements to resell | 6,250 | 6,775 | |||||||
Federal funds sold | 4,635 | 2,270 | |||||||
Trading securities | 4,077 | 4,047 | |||||||
Available-for-sale securities | 22,931 | 20,988 | |||||||
Held-to-Maturity Securities, Fair Value | 5,051 | 6,142 | |||||||
Advances | 125,973 | 89,212 | |||||||
Mortgage loans held for portfolio, net | 7,053 | 6,904 | |||||||
Accrued interest receivable | 187 | 143 | |||||||
Derivative assets, net | 109 | 94 | |||||||
Other assets | 23 | 19 | |||||||
Liabilities | |||||||||
Deposits | (1,033) | (1,110) | |||||||
Federal Home Loan Bank, Consolidated Obligations Fair Value Disclosure | (167,623) | (130,594) | |||||||
Mandatorily redeemable capital stock | (675) | (103) | |||||||
Accrued interest payable | (181) | (119) | |||||||
Derivative liabilities, net | (85) | (102) | |||||||
Fair Value, Level 1 [Member] | |||||||||
Assets | |||||||||
Cash and due from banks | 245 | 982 | |||||||
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 | 0 | 0 | |||||||
Other assets | 23 | 19 | |||||||
Liabilities | |||||||||
Deposits | 0 | 0 | |||||||
Federal Home Loan Bank, Consolidated Obligations Fair Value Disclosure | 0 | 0 | |||||||
Mandatorily redeemable capital stock | (675) | (103) | |||||||
Accrued interest payable | 0 | 0 | |||||||
Derivative liabilities, net | 0 | 0 | |||||||
Fair Value, Level 2 [Member] | |||||||||
Assets | |||||||||
Cash and due from banks | 0 | 0 | |||||||
Interest-bearing deposits | 2 | 2 | |||||||
Securities purchased under agreements to resell | 6,250 | 6,775 | |||||||
Federal funds sold | 4,635 | 2,270 | |||||||
Trading securities | 4,077 | 4,047 | |||||||
Available-for-sale securities | 22,931 | 20,988 | |||||||
Held-to-Maturity Securities, Fair Value | 5,035 | 6,123 | |||||||
Advances | 125,973 | 89,212 | |||||||
Mortgage loans held for portfolio, net | 6,932 | 6,792 | |||||||
Accrued interest receivable | 187 | 143 | |||||||
Derivative assets, net | 229 | 155 | |||||||
Other assets | 0 | 0 | |||||||
Liabilities | |||||||||
Deposits | (1,033) | (1,110) | |||||||
Federal Home Loan Bank, Consolidated Obligations Fair Value Disclosure | (167,623) | (130,594) | |||||||
Mandatorily redeemable capital stock | 0 | 0 | |||||||
Accrued interest payable | (181) | (119) | |||||||
Derivative liabilities, net | (1,113) | (705) | |||||||
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 | 16 | 19 | |||||||
Advances | 0 | 0 | |||||||
Mortgage loans held for portfolio, net | 121 | 112 | |||||||
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 Discount Notes [Member] | Reported Value Measurement [Member] | |||||||||
Liabilities | |||||||||
Discount notes | (84,481) | (98,990) | |||||||
Consolidated Obligation Discount Notes [Member] | Fair Value [Member] | |||||||||
Liabilities | |||||||||
Discount notes | (84,500) | (98,984) | |||||||
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 | (84,500) | (98,984) | |||||||
Consolidated Obligation Discount Notes [Member] | Fair Value, Level 3 [Member] | |||||||||
Liabilities | |||||||||
Discount notes | 0 | 0 | |||||||
Loan Origination Commitments [Member] | Reported Value Measurement [Member] | |||||||||
Other [Abstract] | |||||||||
Other | 0 | 0 | |||||||
Loan Origination Commitments [Member] | Fair Value [Member] | |||||||||
Other [Abstract] | |||||||||
Other | (4) | (1) | |||||||
Loan Origination Commitments [Member] | Fair Value, Level 1 [Member] | |||||||||
Other [Abstract] | |||||||||
Other | 0 | 0 | |||||||
Loan Origination Commitments [Member] | Fair Value, Level 2 [Member] | |||||||||
Other [Abstract] | |||||||||
Other | (4) | (1) | |||||||
Loan Origination Commitments [Member] | Fair Value, Level 3 [Member] | |||||||||
Other [Abstract] | |||||||||
Other | 0 | 0 | |||||||
Standby Letters of Credit [Member] | Reported Value Measurement [Member] | |||||||||
Other [Abstract] | |||||||||
Other | (3) | (2) | |||||||
Standby Letters of Credit [Member] | Fair Value [Member] | |||||||||
Other [Abstract] | |||||||||
Other | (3) | (2) | |||||||
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 | (3) | (2) | |||||||
Financial Standby Letter of Credit [Member] | Reported Value Measurement [Member] | |||||||||
Other [Abstract] | |||||||||
Other | 0 | 0 | |||||||
Financial Standby Letter of Credit [Member] | Fair Value [Member] | |||||||||
Other [Abstract] | |||||||||
Other | (2) | (2) | |||||||
Financial Standby Letter of Credit [Member] | Fair Value, Level 1 [Member] | |||||||||
Other [Abstract] | |||||||||
Other | 0 | 0 | |||||||
Financial Standby Letter of Credit [Member] | Fair Value, Level 2 [Member] | |||||||||
Other [Abstract] | |||||||||
Other | (2) | (2) | |||||||
Financial Standby Letter of Credit [Member] | Fair Value, Level 3 [Member] | |||||||||
Other [Abstract] | |||||||||
Other | 0 | 0 | |||||||
Consolidated Obligation Bonds [Member] | |||||||||
Liabilities | |||||||||
Bonds, Fair Value | 0 | (15) | |||||||
Consolidated Obligation Bonds [Member] | Reported Value Measurement [Member] | |||||||||
Liabilities | |||||||||
Bonds, Fair Value | (82,454) | (31,208) | |||||||
Consolidated Obligation Bonds [Member] | Fair Value [Member] | |||||||||
Liabilities | |||||||||
Bonds, Fair Value | (83,123) | (31,610) | |||||||
Consolidated Obligation Bonds [Member] | Fair Value, Level 1 [Member] | |||||||||
Liabilities | |||||||||
Bonds, Fair Value | 0 | 0 | |||||||
Consolidated Obligation Bonds [Member] | Fair Value, Level 2 [Member] | |||||||||
Liabilities | |||||||||
Bonds, Fair Value | (83,123) | (31,610) | |||||||
Consolidated Obligation Bonds [Member] | Fair Value, Level 3 [Member] | |||||||||
Liabilities | |||||||||
Bonds, Fair Value | $ 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 $0.9 billion and $0.5 billion at September 30, 2016 and December 31, 2015. At September 30, 2016 and December 31, 2015, the Bank had not received any cash collateral from clearing agents and/or counterparties. | ||||||||
[3] | At the Bank's election, the mandatorily redeemable capital stock may be redeemed prior to the expiration of the five year redemption period that commences on the date of the notice of redemption, or in the case of captive insurance company members, on the date of the membership termination. |
Fair Value (Fair Value on a Rec
Fair Value (Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | $ 4,077 | $ 4,047 | |||
Available-for-sale securities | 22,931 | 20,988 | |||
Advances, Fair Value Option | [1] | 2 | 8 | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [2],[3] | (120) | (61) | ||
Derivative assets, net | 109 | 94 | |||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | [2],[3] | 1,028 | 603 | ||
Derivative liabilities, net | (85) | (102) | |||
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 | 0 | 0 | |||
Other assets | 23 | 19 | |||
Derivative liabilities, net | 0 | 0 | |||
Fair Value, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 4,077 | 4,047 | |||
Available-for-sale securities | 22,931 | 20,988 | |||
Derivative assets, net | 229 | 155 | |||
Other assets | 0 | 0 | |||
Derivative liabilities, net | (1,113) | (705) | |||
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] | |||||
Advances, Fair Value Option | 2 | [4] | 8 | [5] | |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [6] | (120) | [7] | (61) | |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | [6] | 1,028 | [7] | 603 | |
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 | 0 | [4] | 0 | [5] | |
Derivative assets, net | 0 | ||||
Other assets | 23 | 19 | |||
Total recurring assets | 23 | 19 | |||
Derivative liabilities, net | 0 | ||||
Total recurring liabilities | 0 | 0 | |||
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 | 4,077 | 4,047 | |||
Available-for-sale securities | 22,931 | 20,988 | |||
Advances, Fair Value Option | 2 | [4] | 8 | [5] | |
Derivative assets, net | 229 | ||||
Other assets | 0 | 0 | |||
Total recurring assets | 27,239 | 25,198 | |||
Derivative liabilities, net | (1,113) | ||||
Total recurring liabilities | (1,113) | (720) | |||
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 | 0 | [4] | 0 | [5] | |
Derivative assets, net | 0 | ||||
Other assets | 0 | 0 | |||
Total recurring assets | 0 | 0 | |||
Derivative liabilities, net | 0 | ||||
Total recurring liabilities | 0 | 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 | (120) | [7] | (61) | [6] | |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 1,028 | [7] | 603 | [6] | |
Interest Rate Swap [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 | |||
Interest Rate Swap [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 | 228 | 155 | |||
Derivative liabilities, net | (1,112) | (705) | |||
Interest Rate Swap [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 | [8] | 229 | 237 | ||
Available-for-sale securities | [9] | 3,703 | 3,985 | ||
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 | 229 | 237 | |||
Available-for-sale securities | 3,703 | 3,985 | |||
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 | 3,086 | 3,077 | |||
Available-for-sale securities | 1,492 | 2,115 | |||
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 | 3,086 | 3,077 | |||
Available-for-sale securities | 1,492 | 2,115 | |||
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, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 1,022 | 1,047 | |||
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 | 1,022 | 1,047 | |||
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 | [10] | 288 | 276 | ||
Available-for-sale securities | [11] | 296 | 278 | ||
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 | 288 | 276 | |||
Available-for-sale securities | 296 | 278 | |||
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 | |||
Fair Value [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 4,077 | 4,047 | |||
Available-for-sale securities | 22,931 | 20,988 | |||
Derivative assets, net | 109 | 94 | |||
Other assets | 23 | 19 | |||
Derivative liabilities, net | (85) | (102) | |||
Fair Value [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 4,077 | 4,047 | |||
Available-for-sale securities | 22,931 | 20,988 | |||
Derivative assets, net | 109 | ||||
Other assets | 23 | 19 | |||
Total recurring assets | 27,142 | 25,156 | |||
Derivative liabilities, net | (85) | ||||
Total recurring liabilities | (85) | (117) | |||
Fair Value [Member] | Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets, net | 108 | 94 | |||
Derivative liabilities, net | (84) | (102) | |||
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 | 229 | 237 | |||
Available-for-sale securities | 3,703 | 3,985 | |||
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 | 3,086 | 3,077 | |||
Available-for-sale securities | 1,492 | 2,115 | |||
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 | 1,022 | 1,047 | |||
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 | 288 | 276 | |||
Available-for-sale securities | 296 | 278 | |||
Single Family [Member] | Other U.S. obligations MBS [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | [9] | 3,501 | 2,270 | ||
Single Family [Member] | Other U.S. obligations 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 | |||
Single Family [Member] | Other U.S. obligations 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 | 2,270 | ||||
Single Family [Member] | Other U.S. obligations 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 | |||
Single Family [Member] | GSE MBS [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 1,356 | 1,605 | |||
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 | 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 | 1,356 | 1,605 | |||
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 | 0 | |||
Single Family [Member] | Fair Value [Member] | Other U.S. obligations MBS [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 3,501 | 2,270 | |||
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 | 1,356 | 1,605 | |||
Multifamily [Member] | GSE MBS [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 474 | 457 | |||
Available-for-sale securities | 11,561 | 9,688 | |||
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] | |||||
Trading securities | 0 | 0 | |||
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] | |||||
Trading securities | 474 | 457 | |||
Available-for-sale securities | 11,561 | 9,688 | |||
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] | |||||
Trading securities | 0 | 0 | |||
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] | |||||
Trading securities | 474 | 457 | |||
Available-for-sale securities | 11,561 | 9,688 | |||
Consolidated Obligation Bonds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Bonds, Fair Value | 0 | (15) | |||
Consolidated Obligation Bonds [Member] | Fair Value, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Bonds, Fair Value | 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, Fair Value | (83,123) | (31,610) | |||
Consolidated Obligation Bonds [Member] | Fair Value, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Bonds, Fair Value | 0 | 0 | |||
Consolidated Obligation Bonds [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Bonds, Fair Value | [5] | (15) | |||
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] | |||||
Bonds, Fair Value | [5] | 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] | |||||
Bonds, Fair Value | [5] | (15) | |||
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] | |||||
Bonds, Fair Value | [5] | 0 | |||
Consolidated Obligation Bonds [Member] | Fair Value [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Bonds, Fair Value | (83,123) | (31,610) | |||
Mortgages [Member] | 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 | 0 | ||||
Mortgages [Member] | 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 | 1 | ||||
Mortgages [Member] | 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 | ||||
Mortgages [Member] | 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 | 1 | ||||
Consolidated Obligation Discount Notes [Member] | Fair Value, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Discount notes | 0 | 0 | |||
Consolidated Obligation Discount Notes [Member] | Fair Value, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Discount notes | (84,500) | (98,984) | |||
Consolidated Obligation Discount Notes [Member] | Fair Value, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Discount notes | 0 | 0 | |||
Consolidated Obligation Discount Notes [Member] | Fair Value [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Discount notes | (84,500) | $ (98,984) | |||
Mortgage-backed securities [Member] | Forward Contracts [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | [6] | 0 | |||
Mortgage-backed securities [Member] | 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 liabilities, net | 0 | ||||
Mortgage-backed securities [Member] | 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 liabilities, net | (1) | ||||
Mortgage-backed securities [Member] | 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 liabilities, net | 0 | ||||
Mortgage-backed securities [Member] | 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 liabilities, net | $ (1) | ||||
[1] | At September 30, 2016 and December 31, 2015, none of the advances were 90 days or more past due or had been placed on non-accrual status. | ||||
[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. | ||||
[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. Cash collateral posted by the Bank (including accrued interest) was $0.9 billion and $0.5 billion at September 30, 2016 and December 31, 2015. At September 30, 2016 and December 31, 2015, the Bank had not received any cash collateral from clearing agents and/or counterparties. | ||||
[4] | Represents financial instruments recorded under the fair value option. | ||||
[5] | Represents financial instruments recorded under the fair value option. | ||||
[6] | Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. | ||||
[7] | Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. | ||||
[8] | Represents investment securities backed by the full faith and credit of the U.S. Government. | ||||
[9] | Represents investment securities backed by the full faith and credit of the U.S. Government. | ||||
[10] | Consists of taxable municipal bonds. | ||||
[11] | Consists of taxable municipal bonds and/or Private Export Funding Corporation (PEFCO) bonds. |
Fair Value (Fair Value on a Non
Fair Value (Fair Value on a Non-Recurring Basis) (Details) - Fair Value, Level 3 [Member] - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired mortgage loans held for portfolio | $ 121 | $ 112 | |
Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired mortgage loans held for portfolio | [1] | 10 | 25 |
Real estate owned | [1] | 1 | 1 |
Total non-recurring assets | [1] | $ 11 | $ 26 |
[1] | The fair value information presented for September 30, 2016 is as of the date the fair value adjustment was recorded during the nine months ended September 30, 2016. The fair value information presented for December 31, 2015 is as of the date the fair value adjustment was recorded during the year ended December 31, 2015. |
Fair Value (Fair Value Differen
Fair Value (Fair Value Difference Between Fair Value and Remaining Contractual Principal Balance Outstanding) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value Option, Principal Balance, Advances | $ 125,522 | $ 88,911 | |
Advances, Fair Value Option | [1] | 2 | 8 |
Fair Value Option, Aggregate Differences, Advances | [1] | 0 | 0 |
Reported Value Measurement [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value Option, Principal Balance, Advances | [1] | 2 | 8 |
Consolidated Obligation Discount Notes [Member] | Reported Value Measurement [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Discount Notes, Fair Value Option | 84,481 | 98,990 | |
Consolidated Obligation Bonds [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value Option, Principal Balance, Consolidated Obligation Bonds | 15 | ||
Bonds, Fair Value Option | 0 | 15 | |
Fair Value Option, Aggregate Differences, Bonds | 0 | ||
Consolidated Obligation Bonds [Member] | Reported Value Measurement [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Bonds, Fair Value Option | $ 82,454 | $ 31,208 | |
[1] | At September 30, 2016 and December 31, 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 Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($)Institutions | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)Institutions | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Loss Contingencies [Line Items] | |||||
Obligation with Joint and Several Liability Arrangement, Amount Outstanding | $ 801,000 | $ 801,000 | $ 775,200 | ||
Other liabilities | 56 | 56 | 55 | ||
FLA Balance For All Master Commitments | 96 | 96 | 93 | ||
Gain (Loss) Related to Litigation Settlement | 0 | $ 12 | 337 | $ 12 | |
Standby Letters of Credit [Member] | |||||
Loss Contingencies [Line Items] | |||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | 5,880 | 5,880 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | 131 | 131 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 6,011 | 6,011 | 5,482 | ||
Other liabilities | 3 | $ 3 | 2 | ||
Original Expiration Periods No Later Than | 2,025 | ||||
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 | ||||
Financial Standby Letter of Credit [Member] | |||||
Loss Contingencies [Line Items] | |||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | 98 | $ 98 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | 333 | 333 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 431 | $ 431 | 560 | ||
Original Expiration Periods No Later Than | 2,020 | ||||
Original Expiration Periods Up To | 7 years | ||||
Number of Housing Authorities For Which the Bank Has Standby Bond Purchase Agreements | Institutions | 5 | 5 | |||
Fees Generated From Guarantees Related to Standby Bond Purchase Agreements | $ 0 | $ 0 | $ 1 | $ 1 | |
Commitments to Issue Bonds [Member] | |||||
Loss Contingencies [Line Items] | |||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | 54 | 54 | |||
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 | 54 | 54 | 0 | ||
Commitments to Issue Discount Notes [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 | 2,500 | ||
Loan Origination Commitments [Member] | |||||
Loss Contingencies [Line Items] | |||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | 204 | 204 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | 90 | 90 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 294 | 294 | 145 | ||
Other Commitments [Domain] | |||||
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 | 87 | ||
Mortgages [Member] | Forward Contracts [Member] | |||||
Loss Contingencies [Line Items] | |||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | 211 | 211 | |||
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 | $ 211 | $ 211 | $ 51 | ||
Period of Delivery Commitments | 45 days |
Activities with Stockholders 84
Activities with Stockholders (Transactions with Directors' Financial Institutions) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | ||
Advances | $ 125,828 | $ 89,173 |
Mortgage Loans | 6,794 | 6,756 |
Deposits, Domestic | 1,033 | 1,110 |
Capital Stock | 5,658 | 4,714 |
Director [Member] | ||
Related Party Transaction [Line Items] | ||
Advances | $ 2,649 | $ 1,606 |
Advances, Percent | 2.00% | 2.00% |
Mortgage Loans | $ 170 | $ 151 |
Mortgage Loans, Percent | 3.00% | 2.00% |
Deposits, Domestic | $ 25 | $ 17 |
Deposits, Percent | 2.00% | 2.00% |
Capital Stock | $ 163 | $ 120 |
Capital Stock, Percent | 3.00% | 2.00% |
Activities with Stockholders (B
Activities with Stockholders (Business Concentrations) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |||||
Related Party Transaction [Line Items] | |||||||||
Advances | $ 125,828 | $ 125,828 | $ 89,173 | ||||||
Mortgage Loans | 6,794 | 6,794 | 6,756 | ||||||
Interest Income on Advances | 237 | $ 81 | 594 | $ 210 | |||||
Wells Fargo Bank N.A. [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Capital Stock | $ 2,755 | $ 2,755 | $ 1,490 | ||||||
Capital Stock Percentage | 43.00% | [1] | 43.00% | [1] | 31.00% | [2] | |||
Advances | $ 68,625 | $ 68,625 | $ 37,000 | ||||||
Mortgage Loans | 0 | 0 | 0 | ||||||
Interest Income on Advances | 278 | [3] | 99 | [4] | |||||
Superior Guaranty Insurance Company [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Capital Stock | $ 30 | [5] | $ 30 | [5] | $ 37 | [6] | |||
Capital Stock Percentage | 1.00% | [1],[5] | 1.00% | [1],[5] | 1.00% | [2],[6] | |||
Advances | $ 0 | [5] | $ 0 | [5] | $ 0 | [6] | |||
Mortgage Loans | 737 | [5] | 737 | [5] | 899 | [6] | |||
Interest Income on Advances | 0 | [3],[5] | 0 | [4],[6] | |||||
Wells Fargo Northwest NA [Member] [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Capital Stock | $ 2 | [5] | $ 2 | [5] | $ 2 | [6] | |||
Capital Stock Percentage | 0.00% | [1],[5] | 0.00% | [1],[5] | 0.00% | [2],[6] | |||
Advances | $ 0 | [5] | $ 0 | [5] | $ 0 | [6] | |||
Mortgage Loans | 39 | [5] | 39 | [5] | 48 | [6] | |||
Interest Income on Advances | 0 | [3],[5] | 0 | [4],[6] | |||||
Principal Owner [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Capital Stock | $ 2,787 | $ 2,787 | $ 1,529 | ||||||
Capital Stock Percentage | [2] | 44.00% | 44.00% | 32.00% | |||||
Advances | $ 68,625 | $ 68,625 | $ 37,000 | ||||||
Mortgage Loans | $ 776 | 776 | 947 | ||||||
Interest Income on Advances | $ 278 | [3] | $ 99 | [4] | |||||
Stockholders' Equity, Total [Member] | Stockholders' Capital Stock Outstanding Concenetration Risk [Member] | Minimum [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Business Concentration Percentage | 10.00% | ||||||||
[1] | Pursuant to applicable Finance Agency regulations, the Bank's voting structure limits the voting rights of these stockholders and other members holding a significant amount of the Bank's capital stock. | ||||||||
[2] | Pursuant to applicable Finance Agency regulations, the Bank's voting structure limits the voting rights of these stockholders and other members holding a significant amount of the Bank's capital stock. | ||||||||
[3] | Represents interest income earned on advances during the nine months ended September 30, 2016. Interest income on mortgage loans is excluded from this table as this interest relates to the borrower, not to the stockholder. | ||||||||
[4] | Represents interest income earned on advances during the year ended December 31, 2015. Interest income on mortgage loans is excluded from this table as this interest relates to the borrower, not to the stockholder. | ||||||||
[5] | Superior Guaranty Insurance Company and Wells Fargo Bank Northwest, N.A. are affiliates of Wells Fargo Bank, N.A. | ||||||||
[6] | Superior Guaranty Insurance Company and Wells Fargo Bank Northwest, N.A. are affiliates of Wells Fargo Bank, N.A. |
Activities with Other FHLBank86
Activities with Other FHLBanks (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Other Transactions [Line Items] | ||||||
Borrowings from Other Federal Home Loan Banks | $ 0 | $ 0 | $ 0 | |||
Proceeds from Federal Home Loan Bank Borrowings | 300 | |||||
Repayments of Federal Home Loan Bank Borrowings | (300) | |||||
Federal Home Loan Bank of San Francisco [Member] | ||||||
Schedule of Other Transactions [Line Items] | ||||||
Borrowings from Other Federal Home Loan Banks | $ 0 | 0 | $ 0 | 0 | $ 0 | 0 |
Proceeds from Federal Home Loan Bank Borrowings | 200 | 100 | ||||
Repayments of Federal Home Loan Bank Borrowings | (200) | (100) | ||||
Federal Home Loan Bank of Dallas [Member] | ||||||
Schedule of Other Transactions [Line Items] | ||||||
Borrowings from Other Federal Home Loan Banks | 0 | 0 | 0 | |||
Proceeds from Federal Home Loan Bank Borrowings | 200 | |||||
Repayments of Federal Home Loan Bank Borrowings | (200) | |||||
Federal Home Loan Bank of Chicago [Member] | ||||||
Schedule of Other Transactions [Line Items] | ||||||
MPF Service Fee Expense | $ 0 | 0 | $ 2 | 2 | ||
Federal Home Loan Bank of Topeka [Member] | ||||||
Schedule of Other Transactions [Line Items] | ||||||
Payments for Federal Home Loan Bank Advances | 100 | |||||
Proceeds from Federal Home Loan Bank Loans | (100) | |||||
Loans to Other Federal Home Loan Banks | $ 0 | $ 0 | $ 0 |