Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 28, 2022 | Jun. 30, 2021 | |
Document and Entity Information [Abstract] | |||
Entity Tax Identification Number | 42-6000149 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Amendment Flag | false | ||
Entity Registrant Name | FEDERAL HOME LOAN BANK OF DES MOINES | ||
Entity Central Index Key | 0001325814 | ||
Entity File Number | 000-51999 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 34,090,758 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Shell Company | false | ||
City Area Code | 515 | ||
Local Phone Number | 412-2100 | ||
Entity Address, Address Line One | 909 Locust Street | ||
Entity Address, Address Line Two | Des Moines | ||
Entity Address, State or Province | IA | ||
Entity Address, Postal Zip Code | 50309 | ||
Entity Incorporation, State or Country Code | X1 | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | Detroit, Michigan | ||
Auditor Firm ID | 238 |
Statements of Condition
Statements of Condition - USD ($) shares in Millions, $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from banks (Note 3) | $ 295 | $ 978 |
Interest-bearing deposits (Note 4) | 416 | 401 |
Securities purchased under agreements to resell (Note 4) | 12,450 | 4,800 |
Federal funds sold (Note 4) | 4,690 | 3,695 |
Investment securities (Note 4) | ||
Trading securities | 1,169 | 4,875 |
Available-for-sale securities (amortized cost of $13,301 and $15,858) | 13,389 | 15,910 |
Held-to-maturity securities (fair value of $1,405 and $1,921) | 1,328 | 1,816 |
Total investment securities | 15,886 | 22,601 |
Advances (Note 5) | 44,111 | 46,530 |
Mortgage loans held for portfolio, net of allowance for credit losses of $1 and $1 (Note 6) | 7,578 | 8,242 |
Accrued interest receivable | 84 | 97 |
Derivative assets, net (Note 7) | 221 | 227 |
Other assets, net | 121 | 120 |
TOTAL ASSETS | 85,852 | 87,691 |
LIABILITIES | ||
Interest-bearing | 1,718 | 1,635 |
Non-interest-bearing | 129 | 273 |
Total deposits | 1,847 | 1,908 |
Consolidated obligations (Note 9) | ||
Discount notes (includes $22,348 and $0 at fair value held under the fair value option) | 22,348 | 27,345 |
Bonds | 55,205 | 52,254 |
Total consolidated obligations | 77,553 | 79,599 |
Mandatorily redeemable capital stock (Note 11) | 29 | 52 |
Accrued interest payable | 97 | 145 |
Affordable Housing Program payable (Note 10) | 131 | 162 |
Derivative liabilities, net (Note 7) | 3 | 4 |
Other liabilities | 354 | 81 |
TOTAL LIABILITIES | 80,014 | 81,951 |
Commitments and contingencies (Note 14) | ||
CAPITAL (Note 11) | ||
Capital stock - Class B putable ($100 par value); 34 and 34 issued and outstanding shares | 3,364 | 3,341 |
Retained earnings | ||
Unrestricted | 1,773 | 1,775 |
Restricted | 617 | 576 |
Total retained earnings | 2,390 | 2,351 |
Accumulated other comprehensive income (loss) | 84 | 48 |
TOTAL CAPITAL | 5,838 | 5,740 |
TOTAL LIABILITIES AND CAPITAL | 85,852 | 87,691 |
Available-for-sale securities, amortized cost | 13,301 | 15,858 |
Held-to-maturity securities, fair value | 1,405 | 1,921 |
Mortgage loan allowance for credit losses | $ 1 | $ 1 |
Capital stock - Class B putable, par value per share | $ 100 | $ 100 |
Fair Value Option Election | Consolidated Obligation Discount Notes [Member] | ||
Discount notes elected under the fair value option | $ 22,348 | $ 0 |
Common Class B [Member] | ||
Capital stock - Class B putable, par value per share | $ 100 | $ 100 |
Capital stock - Class B putable, issued shares | 34 | 34 |
Capital stock - Class B putable, outstanding shares | 34 | 34 |
Statements of Income
Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
INTEREST INCOME | |||
Advances | $ 472 | $ 950 | $ 2,466 |
Interest-bearing deposits | 1 | 1 | 3 |
Securities purchased under agreements to resell | 2 | 33 | 179 |
Federal funds sold | 7 | 31 | 161 |
Trading securities | 34 | 48 | 29 |
Available-for-sale securities | 101 | 206 | 506 |
Held-to-maturity securities | 26 | 38 | 79 |
Mortgage loans held for portfolio | 204 | 258 | 285 |
Total interest income | 847 | 1,565 | 3,708 |
INTEREST EXPENSE | |||
Consolidated obligations - Discount notes | 12 | 172 | 817 |
Consolidated obligations - Bonds | 452 | 915 | 2,289 |
Deposits | 0 | 1 | 14 |
Mandatorily redeemable capital stock | 2 | 5 | 12 |
Total interest expense | 466 | 1,093 | 3,132 |
NET INTEREST INCOME | 381 | 472 | 576 |
Provision (reversal) for credit losses on mortgage loans | 0 | 1 | 0 |
NET INTEREST INCOME AFTER PROVISION (REVERSAL) FOR CREDIT LOSSES | 381 | 471 | 576 |
OTHER INCOME (LOSS) | |||
Net gains (losses) on trading securities | (38) | 17 | 28 |
Net gains (losses) on financial instruments held at fair value | 1 | 0 | 0 |
Net gains (losses) on derivatives | 14 | (48) | (35) |
Gains on litigation settlements, net | 0 | 120 | 0 |
Standby letter of credit fees | 10 | 12 | 11 |
Other, net | 17 | 20 | 16 |
Total other income (loss) | 4 | 121 | 20 |
OTHER EXPENSE | |||
Compensation and benefits | 80 | 103 | 65 |
Contractual services | 19 | 16 | 16 |
Professional fees | 14 | 25 | 33 |
Other operating expenses | 19 | 22 | 31 |
Federal Housing Finance Agency | 9 | 10 | 10 |
Office of Finance | 7 | 6 | 7 |
Other, net | 8 | 7 | 6 |
Total other expense | 156 | 189 | 168 |
NET INCOME BEFORE ASSESSMENTS | 229 | 403 | 428 |
Affordable Housing Program assessments | 23 | 41 | 44 |
NET INCOME | $ 206 | $ 362 | $ 384 |
Statements of Comprehensive Inc
Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 206 | $ 362 | $ 384 |
Other comprehensive income (loss) | |||
Net unrealized gains (losses) on available-for-sale securities | 36 | 4 | (39) |
Pension and postretirement benefits | 0 | 0 | (1) |
Total other comprehensive income (loss) | 36 | 4 | (40) |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ 242 | $ 366 | $ 344 |
Statements of Capital
Statements of Capital - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | $ 5,740 | $ 6,726 | $ 7,548 |
Comprehensive income (loss) | 242 | 366 | 344 |
Proceeds from issuance of capital stock | 2,763 | 3,376 | 7,205 |
Repurchases/redemptions of capital stock | (2,659) | (4,545) | (8,091) |
Net shares reclassified (to) from mandatorily redeemable capital stock | (81) | (7) | (11) |
Partial recovery of prior capital distribution to Financing Corporation | 0 | 26 | 0 |
Cash dividends on capital stock | (167) | (203) | (269) |
Ending Balance | 5,838 | 5,740 | 6,726 |
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 1 | ||
Ending Balance | 1 | ||
Retained Earnings, Unrestricted [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 1,775 | 1,661 | 1,623 |
Comprehensive income (loss) | 165 | 290 | 307 |
Partial recovery of prior capital distribution to Financing Corporation | 26 | ||
Cash dividends on capital stock | (167) | (203) | (269) |
Ending Balance | 1,773 | 1,775 | 1,661 |
Retained Earnings, Unrestricted [Member] | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 1 | ||
Ending Balance | 1 | ||
Retained Earnings, Restricted [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 576 | 504 | 427 |
Comprehensive income (loss) | 41 | 72 | 77 |
Ending Balance | 617 | 576 | 504 |
Retained Earnings [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 2,351 | 2,165 | 2,050 |
Comprehensive income (loss) | 206 | 362 | 384 |
Partial recovery of prior capital distribution to Financing Corporation | 26 | ||
Cash dividends on capital stock | (167) | (203) | (269) |
Ending Balance | 2,390 | 2,351 | 2,165 |
Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 1 | ||
Ending Balance | 1 | ||
Accumulated Other Comprehensive Income [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 48 | 44 | 84 |
Comprehensive income (loss) | 36 | 4 | (40) |
Ending Balance | $ 84 | $ 48 | $ 44 |
Common Class B [Member] | Capital Stock (putable) [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance (shares) | 34 | 45 | 54 |
Beginning Balance | $ 3,341 | $ 4,517 | $ 5,414 |
Proceeds from issuance of capital stock (shares) | 28 | 34 | 72 |
Proceeds from issuance of capital stock | $ 2,763 | $ 3,376 | $ 7,205 |
Repurchases/redemptions of capital stock (shares) | (27) | (45) | (81) |
Repurchases/redemptions of capital stock | $ (2,659) | $ (4,545) | $ (8,091) |
Net shares reclassified (to) from mandatorily redeemable capital stock (shares) | (1) | 0 | 0 |
Net shares reclassified (to) from mandatorily redeemable capital stock | $ (81) | $ (7) | $ (11) |
Balance (shares) | 34 | 34 | 45 |
Ending Balance | $ 3,364 | $ 3,341 | $ 4,517 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
OPERATING ACTIVITIES | |||
Net income | $ 206 | $ 362 | $ 384 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | |||
Depreciation and amortization/(accretion) | 58 | 19 | (55) |
Net (gains) losses on trading securities | 38 | (17) | (28) |
Net (gains) losses on financial instruments held at fair value | (1) | 0 | 0 |
Net change in derivatives and hedging activities | 360 | (251) | (32) |
Other adjustments, net | 17 | 8 | 4 |
Net change in: | |||
Accrued interest receivable | (7) | 45 | (22) |
Other assets | (7) | (4) | (12) |
Accrued interest payable | (48) | (107) | (15) |
Other liabilities | (29) | 4 | 9 |
Total adjustments | 381 | (303) | (151) |
Net cash provided by (used in) operating activities | 587 | 59 | 233 |
INVESTING ACTIVITIES | |||
Net change in interest-bearing deposits | 149 | (643) | (143) |
Net change in securities purchased under agreements to resell | (7,650) | 9,150 | (9,250) |
Net change in federal funds sold | (995) | 910 | (455) |
Trading securities | |||
Proceeds from sales | 0 | 3,449 | 0 |
Proceeds from maturities and paydowns | 4,766 | 1,759 | 55 |
Purchases | (1,098) | (9,178) | 0 |
Available-for-sale securities | |||
Proceeds from maturities and paydowns | 2,693 | 2,423 | 2,668 |
Purchases | (115) | (1,437) | 0 |
Held-to-maturity securities | |||
Proceeds from maturities and paydowns | 478 | 539 | 611 |
Advances | |||
Repaid | 138,435 | 180,921 | 290,808 |
Originated | (136,486) | (146,824) | (264,580) |
Mortgage loans held for portfolio | |||
Principal collected | 2,506 | 3,345 | 1,555 |
Purchased | (1,885) | (2,295) | (3,074) |
Other investing activities, net | (2) | (6) | (6) |
Net cash provided by (used in) investing activities | 796 | 42,113 | 18,189 |
FINANCING ACTIVITIES | |||
Net change in deposits | (48) | 803 | 5 |
Net change in borrowings from other FHLBanks | 0 | 0 | (500) |
Net proceeds from issuance of consolidated obligations | |||
Discount notes | 325,463 | 178,910 | 121,189 |
Bonds | 65,424 | 42,545 | 66,684 |
Payments for maturing and retiring consolidated obligations | |||
Discount notes | (330,458) | (181,023) | (134,448) |
Bonds | (62,280) | (81,951) | (69,227) |
Proceeds from issuance of capital stock | 2,763 | 3,376 | 7,205 |
Proceeds from issuance of mandatorily redeemable capital stock | 0 | 18 | 1 |
Payments for repurchases/redemptions of capital stock | (2,659) | (4,545) | (8,091) |
Payments for repurchases/redemptions of mandatorily redeemable capital stock | (104) | (179) | (61) |
Partial recovery of prior capital distribution to Financing Corporation | 0 | 26 | 0 |
Cash dividends paid | (167) | (203) | (269) |
Net cash provided by (used in) financing activities | (2,066) | (42,223) | (17,512) |
Net increase (decrease) in cash and due from banks | (683) | (51) | 910 |
Cash and due from banks at beginning of the period | 978 | 1,029 | 119 |
Cash and due from banks at end of the period | 295 | 978 | 1,029 |
SUPPLEMENTAL DISCLOSURES | |||
Interest paid | 528 | 1,307 | 3,245 |
Affordable Housing Program payments | 54 | 36 | 40 |
Capitalized interest on reverse mortgage investment securities | 20 | 51 | 122 |
Capital stock reclassified to (from) mandatorily redeemable capital stock, net | 81 | 7 | 11 |
Traded but not yet settled investment security purchases | $ 291 | $ 18 | $ 0 |
Background Information
Background Information | 12 Months Ended |
Dec. 31, 2021 | |
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 that is exempt from all federal, state, and local taxation (except real property taxes and certain employer payroll taxes) and is one of 11 district Federal Home Loan Banks (FHLBanks). The FHLBanks are government-sponsored enterprises (GSEs) and were created under the authority of the Federal Home Loan Bank Act of 1932 (FHLBank Act) in order to serve the public by enhancing the availability of funds for residential mortgages and targeted community development. The Bank is regulated by the Federal Housing Finance Agency (Finance Agency). The Bank is a cooperative, meaning it is owned by its customers, whom the Bank calls members. As a condition of membership in the Bank, all members must purchase and maintain capital stock to support business activities with the Bank. In return, the Bank provides a readily available source of funding and liquidity 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, savings institutions, 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. 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies BASIS OF PRESENTATION The Bank prepares its financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP). Reclassifications Certain amounts in the Bank’s 2020 and 2019 financial statements and footnotes have been reclassified to conform to the presentation as of December 31, 2021. These amounts were not deemed to be material. SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make subjective assumptions and estimates that may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of income and expense. The most significant of these estimates include those used in conjunction with fair value estimates and derivatives and hedging activities. Actual results could significantly differ from these estimates. Fair Value. The fair value amounts, recorded on the Bank’s Statements of Condition and presented in the footnote disclosures, have been determined by the Bank using available market information and management’s best judgment of appropriate valuation methods. Although management uses its best judgment in estimating the fair value of financial instruments, there are inherent limitations in any valuation technique. Therefore, these fair values may not be indicative of the amounts that would have been realized in market transactions at the reporting dates. See “Note 13 — Fair Value” for more information. Financial Instruments Meeting Netting Requirements The Bank has certain financial instruments, including derivative instruments and securities purchased under agreements to resell, that may be presented on a net basis when there is a legal right of offset and all other requirements for netting are met (collectively referred to as the netting requirements). The Bank has elected to offset its derivative instruments, related cash collateral, and associated accrued interest when it has met the netting requirements. The net exposure for these financial instruments can change on a daily basis and, therefore, there may be a delay between the time this exposure change is identified and additional collateral is requested, and the time when this collateral is received or pledged. Likewise, there may be a delay for excess collateral to be returned. For derivative instruments that meet the requirements for netting, any excess cash collateral received or pledged is recognized as a derivative liability or derivative asset. Additional information regarding these agreements is provided in “Note 7 — Derivatives and Hedging Activities.” At December 31, 2021 and 2020, the Bank had $12 billion and $5 billion in securities purchased under agreements to resell. There were no offsetting liabilities related to these securities at December 31, 2021 and 2020. Interest-Bearing Deposits, Securities Purchased Under Agreements to Resell, and Federal Funds Sold The Bank invests in interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold. Interest-bearing deposits include deposits held with banks or counterparties that do not meet the definition of a security. The Bank treats securities purchased under agreements to resell as short-term collateralized loans. Federal funds sold consist of short-term, unsecured loans generally transacted by counterparties that are considered investment quality by the Bank. All of these investments provide short-term liquidity and are carried at amortized cost. Accrued interest receivable is recorded separately on the Statements of Condition. These investments are evaluated quarterly for expected credit losses. If applicable, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The Bank uses the collateral maintenance provision practical expedient for securities purchased under agreements to resell. Consequently, a credit loss would be recognized if there is a collateral shortfall which the Bank does not believe the counterparty will replenish in accordance with its contractual terms. The credit loss would be limited to the difference between the fair value of the collateral and the investment’s amortized cost. Prior to January 1, 2020, securities purchased under agreements to resell were evaluated for impairment if there was a collateral shortfall which the Bank did not believe the counterparty would replenish in accordance with the contractual terms. See “Note 4 — Investments” for details on the allowance methodologies relating to these investments. Debt Securities The Bank classifies investment securities as trading, available-for-sale (AFS), or held-to-maturity (HTM) at the date of acquisition. Purchases and sales of investment securities are recorded on a trade date basis. The Bank records interest on investment securities to interest income as earned. The Bank generally amortizes/accretes premiums and discounts on AFS and HTM investment securities to income using the contractual level-yield method (level-yield method). In addition, the Bank uses this method to amortize/accrete fair value hedging adjustments. The level-yield method recognizes the income effects of these adjustments over the contractual life of the securities based on the actual behavior of the underlying assets, including adjustments for actual prepayment activities, and reflects the contractual terms of the securities without regard to changes in estimated prepayments based on assumptions about future borrower behavior. For callable AFS and HTM non-mortgage-backed securities (MBS) purchased at a premium, the Bank amortizes the premium to the next contractual call date. The Bank computes gains and losses on sales of investment securities using the specific identification method and includes these gains and losses in other income (loss). Trading . Securities classified as trading are carried at fair value and generally entered into for liquidity purposes. In addition, the Bank classifies certain securities as trading that do not qualify for hedge accounting, 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. The Bank records changes in the fair value of these securities through other income (loss) as “Net gains (losses) on trading securities.” Finance Agency regulation prohibits trading in or the speculative use of these instruments. Available-for-Sale. Securities that are not classified as trading or HTM are classified as AFS and carried at fair value. The Bank records changes in the fair value of these securities through accumulated other comprehensive income (loss) (AOCI) as “Net unrealized gains (losses) on available-for-sale securities.” For AFS securities that have been hedged and qualify as a fair value hedge, the Bank records the portion of the change in the fair value of the security related to the risk being hedged in AFS interest income together with the related change in fair value of the derivative, and records the remainder of the change in fair value through AOCI as “Net unrealized gains (losses) on available-for-sale securities.” The Bank evaluates its individual AFS securities for impairment quarterly by comparing the security’s fair value to its amortized cost. Accrued interest receivable is recorded separately on the Statements of Condition. Impairment may exist when the fair value of the investment is less than its amortized cost (i.e., in an unrealized loss position). In assessing whether a credit loss exists on an impaired security, the Bank considers whether there would be a shortfall in receiving all cash flows contractually due. When a shortfall is considered possible, the Bank compares the present value of cash flows to be collected from the security with the amortized cost basis of the security. If the present value of cash flows is less than amortized cost, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The allowance is limited by the amount of the unrealized loss. The allowance for credit losses excludes uncollectible accrued interest receivable, which is measured separately, if applicable. If management intends to sell an impaired security classified as AFS, or more likely than not will be required to sell the security before expected recovery of its amortized cost basis, any allowance for credit losses is written off and the amortized cost basis is written down to the security’s fair value at the reporting date with any incremental impairment reported in other income (loss). If management does not intend to sell an impaired security classified as AFS and it is not more likely than not that management will be required to sell the debt security, then the credit portion of the difference is recognized as an allowance for credit losses and any remaining difference between the security’s fair value and amortized cost is recorded to “Net unrealized gains (losses) on available-for-sale securities” within AOCI. Prior to January 1, 2020, the Bank evaluated its individual AFS securities in an unrealized loss position for other-than-temporary impairment (OTTI) on a quarterly basis. Held-to-Maturity . Securities that the Bank has both the ability and intent to hold to maturity are classified as HTM and carried at amortized cost, which represents the amount at which an investment is acquired, adjusted for periodic principal repayments, amortization of premiums, and accretion of discounts. Accrued interest receivable is recorded separately on the Statements of Condition. Certain changes in circumstances may cause the Bank to change its intent to hold a security to maturity without calling into question its intent to hold other debt securities to maturity in the future. Thus, the sale or transfer of a HTM security due to certain changes in circumstances, such as evidence of significant deterioration in the issuer’s creditworthiness or changes in regulatory requirements, is not considered to be inconsistent with its original classification. Other events that are isolated, non-recurring, and unusual for the Bank that could not have been reasonably anticipated may cause the Bank to sell or transfer an HTM security without necessarily calling into question its intent to hold other debt securities to maturity. In addition, the sale of a debt security that meets either of the following two conditions would not be considered inconsistent with the original classification of that security: (i) the sale occurs near enough to its maturity date (for example, within three months of maturity), or call date if exercise of the call is probable, that interest rate risk is substantially eliminated as a pricing factor and the changes in market interest rates would not have a significant effect on the security’s fair value or (ii) the sale occurs after the Bank has already collected a substantial portion (at least 85 percent) of the principal outstanding at acquisition due either to prepayments on the debt security or to scheduled payments on the debt security payable in equal installments (both principal and interest) over its term. The Bank evaluates its HTM securities for impairment quarterly on a collective, or pooled, basis unless an individual assessment is deemed necessary because the securities do not possess similar risk characteristics. An allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The allowance for credit losses excludes uncollectible accrued interest receivable, which is measured separately, if applicable. If management intends to sell an impaired security classified as HTM, any allowance for credit losses is written off and the amortized cost basis is written down to the security’s fair value at the reporting date with any incremental impairment reported in other income (loss). Prior to January 1, 2020, the Bank evaluated its individual HTM securities in an unrealized loss position for OTTI on a quarterly basis. See “Note 4 — Investments” for details on the allowance methodologies relating to AFS and HTM securities. Advances Advances (secured loans to members, former members, or eligible housing associates) are carried at amortized cost, which is net of premiums, discounts, and fair value hedging adjustments unless the Bank has elected the fair value option, in which case, the advances are carried at fair value. For advances carried at amortized cost, accrued interest receivable is recorded separately on the Statements of Condition. The Bank records interest on advances to interest income as earned. The Bank amortizes/accretes premiums, discounts, and fair value hedging adjustments on advances to income using the level-yield method over the contractual life of the advances. Advances carried at amortized cost are evaluated quarterly for expected credit losses. If deemed necessary, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The allowance for credit losses excludes uncollectible accrued interest receivable, which is measured separately, if applicable. Prior to January 1, 2020, the Bank evaluated advances to determine whether an allowance for credit losses was necessary if it was probable an impairment had occurred in the Bank’s advance portfolio as of the balance sheet date and the amount of loss could be reasonably estimated. See “Note 5 — Advances” for details on the allowance methodology relating to advances. Past Due and Non-Accrual Advances. An advance is considered past due for financial reporting purposes if default of contractual principal or interest exists for a period of 30 days or more. Past due advances may consist of advances still accruing interest or advances on non-accrual status. An advance is placed on non-accrual status when full payment of principal and interest is not reasonably assured, regardless of delinquency status, or when principal or interest has been in default for a period of 90 days or more, unless the advance is both well-secured and in the process of collection. In general, the Bank would not expect advances to be placed on non-accrual status as they are required by regulation to be fully secured by underlying collateral. Prepayment Fees. The Bank charges a borrower a prepayment fee when the borrower prepays certain advances before the original maturity. For 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 the hedged item fair value hedging adjustments, if applicable, in advance interest income on the Statements of Income. Advance Modifications. In cases in which the Bank funds a new advance to a borrower concurrently with or within a short period of time before or after the prepayment of an existing advance, the Bank evaluates whether the new advance meets the accounting criteria to qualify as a modification of an existing advance or whether it constitutes a new advance. The Bank compares the present value of cash flows on the new advance to the present value of cash flows remaining on the existing advance. If there is at least a ten percent difference in the present value of the cash flows or if the Bank concludes the difference between the advances is more than minor based on a qualitative assessment of the modifications made to the original contractual terms, then the advance is accounted for as a new advance and all prepayment fees or credits net of fair value hedging adjustments are recognized immediately to advance interest income on the Statements of Income. In all other instances, the advance is accounted for as a modification. When a new advance qualifies as a modification of an existing advance, any prepayment fee, net of the hedged item fair value hedging adjustments, as well as any outstanding premiums, discounts, or other adjustments on the prepaid advance, are deferred, recorded in the basis of the modified advance, and amortized over the contractual life of the modified advance using a level-yield methodology to advance interest income. Mortgage Loans Held for Portfolio The Bank classifies mortgage loans that it has the intent and ability to hold for the foreseeable future, or until maturity or payoff, as held for portfolio. Accordingly, these mortgage loans are reported net of premiums, discounts, basis adjustments from mortgage loan purchase commitments, charge-offs, and the allowance for credit losses. The Bank records interest on mortgage loans to interest income as earned. The Bank amortizes/accretes premiums, discounts, and basis adjustments on mortgage loan purchase commitments to income using the level-yield method over the contractual life of the mortgage loans. Accrued interest receivable is recorded separately on the Statements of Condition. The Bank performs a quarterly assessment of its mortgage loans held for portfolio to estimate expected credit losses. If deemed necessary, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The Bank measures expected credit losses on mortgage loans on a collective basis, pooling loans with similar risk characteristics. If a mortgage loan no longer shares risk characteristics with other loans, it is removed from the pool and evaluated for expected credit losses on an individual basis. When developing the allowance for credit losses, the Bank measures the estimated loss over the remaining life of a mortgage loan, which also considers how the Bank’s credit enhancements mitigate credit losses. The Bank includes estimates of expected recoveries within the allowance for credit losses. The allowance excludes uncollectible accrued interest receivable, as the Bank writes off accrued interest receivable by reversing interest income if a mortgage loan is placed on non-accrual status. The Bank does not purchase mortgage loans with credit deterioration at the time of purchase. Prior to January 1, 2020, the Bank recorded an allowance for credit losses on conventional mortgage loans if it was probable an impairment had occurred as of the balance sheet date and the amount of loss could be reasonably estimated. See “Note 6 — Mortgage Loans” for details on the allowance methodology relating to mortgage loans. Past Due and Non-Accrual Loans. A mortgage loan is considered past due if the borrower has failed to make contractual principal and/or interest payments for a period of 30 days or more. The Bank places a conventional mortgage loan on non-accrual status if it is determined that either the collection of interest or principal is doubtful or interest or principal is 90 days or more past due. The Bank does not place a government-insured mortgage loan on non-accrual status due to the U.S. Government guarantee or insurance on the loan and contractual obligation of the loan servicer to repurchase the loan when certain criteria are met. For those mortgage loans placed on non-accrual status, accrued but uncollected interest is reversed against interest income and cash payments received are recorded as a reduction of principal. In addition, premiums, discounts, and basis adjustments from mortgage loan purchase commitments are not amortized while a loan is on non-accrual status. A loan on non-accrual status may be restored to accrual status when none of its contractual principal and interest is due and unpaid and the Bank expects repayment of the remaining contractual principal and interest. Troubled Debt Restructurings . The Bank considers a troubled debt restructuring (TDR) to have occurred when a concession is granted to a borrower for economic or legal reasons related to the borrower’s financial difficulties and that concession would not have been considered otherwise. The Bank’s TDRs generally 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 does not consider government-insured mortgage loans to be TDRs due to the U.S. Government guarantee or insurance on the loan and contractual obligation of the loan servicer to repurchase the loan when certain criteria are met. The Bank places all TDRs on non-accrual status at the time of modification; however, TDRs may be subsequently restored to accrual status if they meet the criteria noted in the non-accrual section above. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) was signed into law. Section 4013 of the CARES Act provided optional, temporary relief from the accounting and reporting requirements for TDRs for certain loan modifications for which borrowers were adversely affected by the coronavirus pandemic (COVID-19). In the second quarter of 2020, the Bank elected to apply the TDR relief provided by the CARES Act to its conventional mortgage loan portfolio. As such, all COVID-19 modifications meeting the provisions of the CARES Act were excluded from TDR classification and accounting. COVID-19 modifications not meeting the provisions of the CARES Act continue to be assessed for TDR classification. See “Note 6 — Mortgage Loans Held for Portfolio” for additional details. Individually Evaluated Loans. The Bank individually evaluates all collateral-dependent loans for expected credit losses. 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, bankruptcy loans 60 days or more past due, and TDRs on non-accrual status. The Bank measures these individually evaluated loans for expected credit loss based on the estimated fair value of the underlying property, less estimated selling costs and expected proceeds from primary mortgage insurance (PMI). All collateral-dependent loans are initially placed on non-accrual status; however, they may be subsequently restored to accrual status if they meet the criteria noted in the non-accrual section above. Charge-Off Policy . A charge-off is recorded if it is estimated that the amortized cost in a loan will not be recovered. The Bank evaluates whether to record a charge-off on a conventional mortgage loan upon the occurrence of a confirming event. Confirming events include but are 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 estimated selling costs and expected proceeds from PMI. Loans to/from Other FHLBanks The Bank may lend or borrow unsecured overnight funds to or from other FHLBanks. All such transactions are at current market rates. Derivatives All derivatives are recognized on the Statements of Condition at their fair values and reported as either derivative assets or derivative liabilities, net of cash collateral and accrued interest received from or pledged to clearing agents and/or counterparties. The fair values of derivatives are netted by clearing agent and/or counterparty when the netting requirements have been met. If these netted amounts result in a receivable to the Bank, they are classified as a derivative asset and, if classified as a payable to the clearing agent or counterparty, they are classified as a derivative liability. Cash flows associated with a derivative are reflected as cash flows from operating activities on the Statements of Cash Flows unless the derivative meets the criteria to be a financing derivative. 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., a clearing agent) with a Derivative Clearing Organization (cleared derivatives). The Bank utilizes one Derivative Clearing Organization (Clearinghouse), CME Clearing, for all cleared derivative transactions. CME Clearing notifies the clearing agent of the required initial margin and daily variation margin payments, and the clearing agent in turn notifies the Bank. The Clearinghouse determines initial margin requirements which are considered cash collateral. Variation margin requirements with CME Clearing are based on changes in the fair value of cleared derivatives and are legally characterized as daily settlement payments, which are a component of the derivative fair value, rather than cash collateral. Derivative Designations . Derivative instruments are designated by the Bank as: • a fair value hedge of an associated financial instrument or firm commitment (fair value hedge); or • an economic hedge to manage certain defined risks on the Bank’s Statements of Condition (economic hedge). These hedges are primarily used to: (i) manage mismatches between the coupon features of the Bank’s assets and liabilities, (ii) offset prepayment risk in certain assets, (iii) mitigate the income statement volatility that occurs when financial instruments are recorded at fair value and hedge accounting is not permitted by accounting guidance, or (iv) reduce exposure to interest reset risk. Accounting for Fair Value Hedges . If hedging relationships meet certain criteria, including, but not limited to, formal documentation of the fair value hedging relationship and an expectation to be highly effective, they qualify for fair value hedge accounting. At the inception of each fair value hedge transaction, the Bank formally documents the hedge relationship and its risk management objective and strategy for undertaking the hedge, including identification of the hedging instrument, the hedged item, the nature of the risk being hedged, and how the hedging instrument’s effectiveness in offsetting the exposure to changes in the hedged item’s fair value attributable to the hedged risk will be assessed. This process includes linking all derivatives that are designated as fair value hedges to assets and liabilities on the Statements of Condition and firm commitments. Changes in the fair value of a derivative that is designated and qualifies as a fair value hedge, along with changes in the fair value of the hedged asset or liability (or firm commitment) that are attributable to the hedged risk, are recorded in net interest income in the same line as the earnings effect of the hedged item. Two approaches to fair value hedge accounting include: • Long-haul hedge accounting . The application of long-haul hedge accounting requires the Bank to formally assess (both at the hedge’s inception and at least quarterly) whether the derivatives that are used in hedging transactions have been highly effective in offsetting changes in the fair value of hedged items due to benchmark interest rate changes and whether those derivatives are expected to remain highly effective in future periods. The Bank uses regression analyses to assess the effectiveness of its long-haul hedges. • Short-cut hedge accounting . Transactions that meet certain criteria qualify for short-cut hedge accounting in which an assumption can be made that the change in fair value of a hedged item due to changes in the hedged risk, exactly offsets the change in fair value of the related derivative. Under the short-cut method, the entire change in fair value of the interest rate swap is considered to be highly effective at achieving offsetting changes in fair value of the hedged asset or liability. If documented at the time of hedge designation, a derivative relationship no longer qualifying for short-cut hedge accounting can fall back to the long-haul accounting method. Derivatives are typically executed at the same time as the hedged item, and the Bank designates the hedged item in a fair value hedging relationship at the trade date. In many hedging relationships, the Bank may designate the fair value hedging relationship upon its commitment to disburse an advance or trade a consolidated obligation in which settlement occurs within the shortest period of time possible for the type of instrument based on market settlement conventions. The Bank then records the changes in fair value of the derivative and the hedged item beginning on the trade date. Accounting for Economic Hedges . An economic hedge is defined as a derivative hedging specific or non-specific underlying assets, liabilities, or firm commitments that does not qualify or was not designated for fair value hedge accounting, but is an acceptable hedging strategy under the Bank’s risk management program. Changes in the fair value of derivatives that are designated as economic hedges are recorded in other income (loss) as “Net gains (losses) on derivatives” with no offsetting fair value adjustments for the underlying assets, liabilities, or firm commitments, unless changes in the fair value of the those items are normally marked to fair value through earnings (e.g., trading securities and fair value option instruments). Accrued Interest Receivables and Payables . The net settlements of interest receivables and payables related to derivatives designated as fair value hedges are recognized as adjustments to the interest income or interest expense of the designated hedged item. The net settlements of interest receivables and payables related to derivatives designated as economic hedges are recognized in other income (loss) as “Net gains (losses) on derivatives.” Discontinuance of Hedge Accounting. The Bank discontinues fair value hedge accounting prospectively when either (i) it determines that the derivative is no longer highly effective in offsetting changes in the fair value of a hedged item due to changes in the benchmark interest rate, (ii) the derivative and/or the hedged item expires or is sold, terminated, or exercised, or (iii) management determines that designating the derivative as a hedging instrument is no longer appropriate. When fair value hedge accounting is discontinued, the Bank either terminates the derivative or continues to carry the derivative on the Statements of Condition at its fair value. For any remaining hedged item, the Bank ceases to adjust the hedged item for changes in fair value and amortizes the cumulative basis adjustment on the hedged item into earnings over the remaining contractual life of the hedged item using the level-yield method. Embedded Derivatives. The Bank may issue debt, make advances, or purchase financial instruments in which a derivative instrument is “embedded.” Upon execution of these transactions, the Bank assesses whether the economic characteristics of the embedded derivative are clearly and closely related to the economic characteristics of the remaining component of the debt, advance, or purchased financial instrument (the host contract) and whether a separate, non-embedded instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. If the Bank determines that the embedded derivative has economic characteristics that are not clearly and closely related to the economic characteristics of the host contract and a separate, stand-alone instrument with the same terms would qualify as a derivative instrument, the embedded derivative is separated from the host contract, carried at fair value, and designated as an economic derivative instrument. However, if the Bank elects to carry the entire contract (the host contract and the embedded derivative) at fair value on the Statements of Condition, changes in fair value of the entire contract will be reported in current period earnings. Premises, Software, and Equipment Premises, software, and equipment are included in other assets on the Statements of Condition. The Bank records premises, software, and equipment at cost less accumulated depreciation and amortization and computes depreciation and amortization using the straight-line method over the estimated useful lives of assets, which range from approximately three years to 40 years. Leasehold improvements, if applicable, are amortized using the straight-line method over the shorter of the estimated useful life of the imp |
Recently Adopted and Issued Acc
Recently Adopted and Issued Accounting Guidance | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Adopted and Issued Accounting Guidance [Text Block] | Recently Adopted and Issued Accounting GuidanceReference Rate Reform (ASU 2020-04)On March 12, 2020, the Financial Accounting Standards Board (FASB) issued temporary guidance to ease the potential burden in accounting for reference rate reform related to the transition from LIBOR. The guidance provides optional expedients and exceptions for applying GAAP to transactions affected by reference rate reform, if certain criteria are met. These transactions include contract modifications, hedging relationships, and the sale/transfer of HTM debt securities. This guidance became effective immediately and the Bank may elect to apply the amendments through December 31, 2022. The Bank continues to evaluate the impact of the guidance and anticipates electing the applicable optional expedients as reference rate activities occur. The effect of this guidance and these activities on the Bank’s financial condition, results of operations, and cash flows depends on the nature of the transactions and market conditions at the time any election is made. |
Cash and Due from Banks
Cash and Due from Banks | 12 Months Ended |
Dec. 31, 2021 | |
Cash and Due from Banks [Abstract] | |
Cash and Cash Equivalents Disclosure [Text Block] | Cash and Due from Banks Cash and due from banks includes cash on hand, cash items in the process of collection, compensating balances, and amounts due from the Federal Reserve Bank. COMPENSATING BALANCES The Bank maintains collected cash balances with commercial banks in return for certain services. These arrangements contain no legal restrictions on the withdrawal of funds. Average collected cash balances were $43 million and $210 million for the years ended December 31, 2021 and 2020. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure | Investments The Bank makes short-term investments in interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold, and makes other investments in debt securities, which are classified as either trading, AFS, or HTM. INTEREST-BEARING DEPOSITS, SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL, AND FEDERAL FUNDS SOLD The Bank invests in interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold to provide short-term liquidity. These investments are generally transacted with counterparties that have received a credit rating of triple-B or greater (investment grade) by a nationally recognized statistical rating organization (NRSRO). At December 31, 2021 and 2020, none of these investments were with counterparties rated below triple-B; however, as of December 31, 2020, approximately 21 percent were secured securities purchased under agreements to resell with unrated counterparties. At December 31, 2021, the Bank held no unrated investments. These NRSRO ratings may differ from any internal ratings of the investments by the Bank. Federal funds sold are unsecured loans that are generally transacted on an overnight term. Finance Agency regulations include a limit on the amount of unsecured credit the Bank may extend to a counterparty. At December 31, 2021 and 2020, no allowance for credit losses was recorded for interest-bearing deposits and federal funds sold, as all assets were repaid or expected to be repaid according to their contractual terms. The carrying values of interest-bearing deposits and federal funds sold exclude accrued interest receivable of less than $1 million at both December 31, 2021 and 2020. Securities purchased under agreements to resell are secured, short-term, and are structured such that they are evaluated regularly to determine if the market value of the underlying securities decreases below the market value required as collateral (i.e., subject to collateral maintenance provisions). If so, the counterparty must place an equivalent amount of additional securities as collateral or remit an equivalent amount of cash, generally by the next business day. Based upon the collateral held as security and collateral maintenance provisions with its counterparties, the Bank determined that no allowance for credit losses was needed for its securities purchased under agreements to resell at December 31, 2021 and 2020. The carrying value of securities purchased under agreements to resell excludes accrued interest receivable of less than $1 million at both December 31, 2021 and 2020. DEBT SECURITIES The Bank invests in debt securities, which are classified as either trading, AFS, or HTM. The Bank is prohibited by Finance Agency regulations from purchasing certain higher-risk securities, such as equity securities and debt instruments that are not investment quality. Exceptions are allowed for certain investments targeted at low-income persons or communities, and instruments that experience credit deterioration after their purchase by the Bank. Trading Securities Trading securities by major security type were as follows (dollars in millions): December 31, 2021 2020 Non-mortgage-backed securities U.S. Treasury obligations 1 $ 496 $ 4,069 Other U.S. obligations 1 102 114 GSE and Tennessee Valley Authority obligations 60 64 Other 2 201 246 Total non-mortgage-backed securities 859 4,493 Mortgage-backed securities GSE multifamily 310 382 Total fair value $ 1,169 $ 4,875 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 The following table summarizes the components of “Net gains (losses) on trading securities” as presented on the Statements of Income (dollars in millions): For the Years Ended December 31, 2021 2020 2019 Net unrealized gains (losses) on trading securities held at period-end $ (28) $ 17 $ 28 Net gains (losses) on trading securities sold/matured during the period (10) — — Net gains (losses) on trading securities $ (38) $ 17 $ 28 AFS Securities AFS securities by major security type we re as follows (dollars in millions): December 31, 2021 Amortized 1 Gross Gross Fair Non-mortgage-backed securities Other U.S. obligations 2 $ 1,152 $ 5 $ (1) $ 1,156 GSE and Tennessee Valley Authority obligations 953 30 — 983 State or local housing agency obligations 492 — (4) 488 Other 3 277 11 — 288 Total non-mortgage-backed securities 2,874 46 (5) 2,915 Mortgage-backed securities U.S. obligations single-family 2 2,890 19 — 2,909 GSE single-family 273 4 — 277 GSE multifamily 7,264 42 (18) 7,288 Total mortgage-backed securities 10,427 65 (18) 10,474 Total $ 13,301 $ 111 $ (23) $ 13,389 December 31, 2020 Amortized 1 Gross Gross Fair Non-mortgage-backed securities Other U.S. obligations 2 $ 1,670 $ 4 $ (2) $ 1,672 GSE and Tennessee Valley Authority obligations 1,000 22 — 1,022 State or local housing agency obligations 712 — (19) 693 Other 3 290 12 — 302 Total non-mortgage-backed securities 3,672 38 (21) 3,689 Mortgage-backed securities U.S. obligations single-family 2 3,527 18 (1) 3,544 GSE single-family 442 4 — 446 GSE multifamily 8,217 47 (33) 8,231 Total mortgage-backed securities 12,186 69 (34) 12,221 Total $ 15,858 $ 107 $ (55) $ 15,910 1 Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and/or fair value hedge accounting adjustments, and excludes accrued interest receivable of $28 million and $31 million at December 31, 2021 and 2020 . 2 Represents investment securities backed by the full faith and credit of the U.S. Government. 3 Consists primarily of taxable municipal 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. December 31, 2021 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Non-mortgage-backed securities Other U.S. obligations 1 $ 80 $ — $ 115 $ (1) $ 195 $ (1) GSE and Tennessee Valley Authority obligations 355 — — — 355 — State or local housing agency obligations — — 451 (4) 451 (4) Total non-mortgage-backed securities 435 — 566 (5) 1,001 (5) Mortgage-backed securities U.S. obligations single-family 1 89 — 87 — 176 — GSE single-family 2 — — — 2 — GSE multifamily 1,831 (3) 2,917 (15) 4,748 (18) Total mortgage-backed securities 1,922 (3) 3,004 (15) 4,926 (18) Total $ 2,357 $ (3) $ 3,570 $ (20) $ 5,927 $ (23) December 31, 2020 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Non-mortgage-backed securities Other U.S. obligations 1 $ 348 $ — $ 698 $ (2) $ 1,046 $ (2) State or local housing agency obligations 336 (15) 288 (4) 624 (19) Total non-mortgage-backed securities 684 (15) 986 (6) 1,670 (21) Mortgage-backed securities U.S. obligations single-family 1 — — 593 (1) 593 (1) GSE single-family — — 14 — 14 — GSE multifamily 662 (8) 3,561 (25) 4,223 (33) Total mortgage-backed securities 662 (8) 4,168 (26) 4,830 (34) Total $ 1,346 $ (23) $ 5,154 $ (32) $ 6,500 $ (55) 1 Represents investment securities backed by the full faith and credit of the U.S. Government. 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): December 31, 2021 December 31, 2020 Year of Contractual Maturity Amortized Fair Amortized Fair Non-mortgage-backed securities Due in one year or less $ 422 $ 422 $ 4 $ 4 Due after one year through five years 1,538 1,548 2,430 2,438 Due after five years through ten years 348 356 494 498 Due after ten years 566 589 744 749 Total non-mortgage-backed securities 2,874 2,915 3,672 3,689 Mortgage-backed securities 10,427 10,474 12,186 12,221 Total $ 13,301 $ 13,389 $ 15,858 $ 15,910 HTM Securities HTM securities by major security type wer e as follows (dollars in millions): December 31, 2021 Amortized 1 Gross Gross Fair Non-mortgage-backed securities GSE and Tennessee Valley Authority obligations $ 374 $ 71 $ — $ 445 State or local housing agency obligations 187 1 (1) 187 Total non-mortgage-backed securities 561 72 (1) 632 Mortgage-backed securities U.S. obligations single-family 2 2 — — 2 GSE single-family 760 6 — 766 Private-label 5 — — 5 Total mortgage-backed securities 767 6 — 773 Total $ 1,328 $ 78 $ (1) $ 1,405 December 31, 2020 Amortized 1 Gross Gross Fair Non-mortgage-backed securities GSE and Tennessee Valley Authority obligations $ 379 $ 97 $ — $ 476 State or local housing agency obligations 203 2 (1) 204 Total non-mortgage-backed securities 582 99 (1) 680 Mortgage-backed securities U.S. obligations single-family 2 3 — — 3 GSE single-family 1,225 9 (2) 1,232 Private-label 6 — — 6 Total mortgage-backed securities 1,234 9 (2) 1,241 Total $ 1,816 $ 108 $ (3) $ 1,921 1 Amortized cost includes adjustments made to the cost basis of an investment for accretion or amortization and excludes accrued interest receivable of $5 million at both December 31, 2021 and 2020. 2 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): December 31, 2021 December 31, 2020 Year of Contractual Maturity Amortized Fair Amortized Fair Non-mortgage-backed securities Due after one year through five years $ 257 $ 287 $ 252 $ 297 Due after five years through ten years 196 204 198 203 Due after ten years 108 141 132 180 Total non-mortgage-backed securities 561 632 582 680 Mortgage-backed securities 767 773 1,234 1,241 Total $ 1,328 $ 1,405 $ 1,816 $ 1,921 ALLOWANCE FOR CREDIT LOSSES ON AFS AND HTM SECURITIES The Bank evaluates AFS and HTM investment securities for credit losses on a quarterly basis. The Bank’s AFS and HTM securities may include, but are not limited to, certificates of deposit, commercial paper, U.S. obligations, GSE and Tennessee Valley Authority (TVA) obligations, state or local housing agency obligations, taxable municipal bonds, and MBS. The Bank only purchases securities considered investment quality. At both December 31, 2021 and 2020, over 99 percent of the Bank’s AFS and HTM securities, based on amortized cost, were rated single-A or above by an NRSRO, based on the lowest long-term credit rating for each security. These NRSRO ratings may differ from any internal ratings of the securities by the Bank. The Bank evaluates its individual AFS securities for impairment by comparing the security’s fair value to its amortized cost. Impairment may exist when the fair value of the investment is less than its amortized cost (i.e., in an unrealized loss position). At December 31, 2021 and 2020, certain AFS securities held by the Bank were in an unrealized loss position. These losses are considered temporary as the Bank expects to recover the entire amortized cost basis on these AFS investment 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 its anticipated recovery of each security's remaining amortized cost basis. In addition, substantially all of these securities carry an implicit or explicit government guarantee. As a result, no allowance for credit losses was recorded on these AFS securities at December 31, 2021 and 2020. |
Advances
Advances | 12 Months Ended |
Dec. 31, 2021 | |
Advances [Abstract] | |
Advances [Text Block] | Advances The Bank offers a wide range of fixed and variable rate advance products with different maturities, interest rates, payment characteristics, and optionality. Fixed rate advances generally have maturities ranging from overnight to 30 years. Variable rate advances generally have maturities ranging from one month to five years, where the interest rates reset periodically to a specified interest rate index such as the Secured Overnight Financing Rate (SOFR) or to consolidated obligation yields. REDEMPTION TERM The following table summarizes the Bank’s advances outstanding by redemption term (dollars in millions): December 31, 2021 December 31, 2020 Redemption Term Amount 1 Weighted Amount 1 Weighted Overdrawn demand deposit accounts $ — — % $ 3 1.29 % Due in one year or less 12,441 1.18 12,499 1.16 Due after one year through two years 7,415 1.72 8,265 1.69 Due after two years through three years 9,956 1.04 10,550 1.42 Due after three years through four years 4,939 0.94 7,011 1.38 Due after four years through five years 6,275 0.95 4,106 1.12 Thereafter 3,113 2.07 3,654 2.10 Total par value 44,139 1.24 % 46,088 1.42 % Premiums 14 18 Discounts (2) (3) Fair value hedging adjustments (40) 427 Total $ 44,111 $ 46,530 1 Excludes accrued interest receivable of $13 million at both December 31, 2021 and 2020. The following table summarizes advances by year of redemption term or next call date for callable advances, and by year of redemption term or next put date for putable advances (dollars in millions): Redemption Term Redemption Term December 31, December 31, December 31, December 31, Overdrawn demand deposit accounts $ — $ 3 $ — $ 3 Due in one year or less 24,690 23,622 13,270 13,486 Due after one year through two years 6,253 6,276 7,429 8,319 Due after two years through three years 4,429 6,436 9,173 10,464 Due after three years through four years 2,357 4,053 4,889 6,116 Due after four years through five years 3,273 2,169 6,276 4,057 Thereafter 3,137 3,529 3,102 3,643 Total par value $ 44,139 $ 46,088 $ 44,139 $ 46,088 The Bank offers advances to members and eligible housing associates that may be prepaid on predetermined dates (call dates) prior to maturity without incurring prepayment fees (callable advances). Other advances may require a prepayment fee or credit that makes the Bank financially indifferent to the prepayment of the advance. At December 31, 2021 and 2020 , the Bank had callable advances outstanding totaling $13.4 billion and $11.7 billion. The Bank also holds putable advances. With a putable advance, the Bank has the right to terminate the advance from the borrower on predetermined exercise date. Generally these put options are exercised when interest rates increase relative to contractual rates. At December 31, 2021 and 2020 , t he Bank had putable advances outstanding totaling $1.1 billion and $1.4 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 the hedged item fair value hedging adjustments, if applicable, in advance interest income on the Statements of Income. The Bank recorded net prepayment fees on advances of $47 million, $75 million, and $9 million for the years ended December 31, 2021, 2020, and 2019. ADVANCE CONCENTRATIONS The Bank’s advances are primarily concentrated in commercial banks and insurance companies. At December 31, 2021 and 2020, the Bank did not have any members who individually held 10 percent or more of the Bank’s advances. ALLOWANCE FOR CREDIT LOSSES The Bank evaluates advances for credit losses on a quarterly basis and manages its credit exposure to advances through an approach that includes establishing a credit limit for each borrower. This approach includes an ongoing review of each borrower’s financial condition in conjunction with the Bank’s 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 its advances. The estimated value of the collateral required to secure each borrower’s advances is calculated by applying collateral discounts, or haircuts, to the unpaid principal balance or market value, as applicable, of the collateral. The Bank also has policies and procedures for validating the reasonableness of the Bank’s collateral valuations. In addition, collateral verifications and on-site reviews are performed by the Bank based on the risk profile of the borrower. Management believes that these policies effectively manage the Bank’s credit risk from advances. Eligible collateral includes: • fully disbursed whole first mortgages on improved residential real property or securities representing a whole interest in such mortgages; • loans and securities issued, insured, or guaranteed by the U.S. Government or any agency thereof, including MBS issued or guaranteed by Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, or Government National Mortgage Association; • cash deposited with the Bank; and • other real estate-related collateral acceptable to the Bank, such as second lien mortgages, home equity lines of credit, tax-exempt municipal securities, and commercial real estate mortgages, provided such collateral has a readily ascertainable value and the Bank can perfect a security interest in it. 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 advances. 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 pledge agreement, 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 pledge agreement, 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 from blanket agreement borrowers. In the event of a default or a deterioration in the financial condition of a blanket pledge agreement borrower, the Bank has the ability to require delivery of pledged collateral sufficient to secure the borrower’s obligation. With respect to non-blanket pledge agreement borrowers that are federally insured, the Bank generally requires collateral to be specifically assigned. With respect to non-blanket pledge agreement 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 advances. At December 31, 2021 and 2020, the Bank had rights to collateral on a borrower-by-borrower basis with an unpaid principal balance or market value, as applicable, in excess of its outstanding advances. At December 31, 2021 and 2020, none of the Bank’s advances were past due, on non-accrual status, or considered impaired. The Bank considers its advances past due for financial reporting purposes if a default of contractual principal or interest exists for a period of 30 days or more. In addition, there were no TDRs related to advances during the years ended December 31, 2021 and 2020. In December 2020, the Bank declared a member bank in default under its contractual terms and demanded all of its outstanding advances to be repaid in full. As of March 31, 2021, all advances with this member bank were deemed past due based on outstanding interest being in default for 30 days or more. However, during the second quarter of 2021, all outstanding advance balances were repaid in full. The Bank has never experienced a credit loss on its advances. Based upon the Bank’s collateral and lending policies, the collateral held as security, and the repayment history on advances, management has determined that there were no expected credit losses on its advances as of December 31, 2021 and 2020. |
Mortgage Loans Held for Portfol
Mortgage Loans Held for Portfolio | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Mortgage Loans Held for Portfolio [Text Block] | Mortgage Loans Held for Portfolio Mortgage loans held for portfolio includes conventional mortgage loans and government-guaranteed or -insured mortgage loans obtained primarily through the Mortgage Partnership Finance (MPF) program (Mortgage Partnership Finance and MPF are registered trademarks of the FHLBank of Chicago). The Bank’s mortgage loan program involves investment by the Bank in single-family mortgage loans held for portfolio that are purchased from participating financial institutions (PFIs). Mortgage loans may also be acquired through participations in pools of eligible mortgage loans purchased from other FHLBanks. The Bank’s PFIs generally originate, service, and credit enhance mortgage loans that are sold to the Bank. 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 PFI to a designated mortgage service provider. The following table presents information on the Bank’s mortgage loans held for portfolio (dollars in millions): December 31, 2021 2020 Fixed rate, long-term single-family mortgage loans $ 6,307 $ 6,945 Fixed rate, medium-term 1 single-family mortgage loans 1,172 1,182 Total unpaid principal balance 7,479 8,127 Premiums 96 107 Discounts (2) (3) Basis adjustments from mortgage loan purchase commitments 6 12 Total mortgage loans held for portfolio 2 $ 7,579 $ 8,243 Allowance for credit losses (1) (1) Total mortgage loans held for portfolio, net $ 7,578 $ 8,242 1 Medium-term is defined as a term of 15 years or less. 2 Excludes accrued interest receivable of $34 million and $40 million at December 31, 2021 and 2020 . The following table presents the Bank’s mortgage loans held for portfolio by collateral or guarantee type (dollars in millions): December 31, 2021 2020 Conventional mortgage loans $ 7,063 $ 7,646 Government-insured mortgage loans 416 481 Total unpaid principal balance $ 7,479 $ 8,127 PAYMENT STATUS OF MORTGAGE LOANS Payment status is the key credit quality indicator for conventional mortgage loans and allows the Bank to monitor borrower performance. Past due loans are those where the borrower has failed to make contractual principal and/or interest payments for a period of 30 days or more. Other delinquency statistics include non-accrual loans and loans in process of foreclosure. The following table presents the payment status for conventional mortgage loans (dollars in millions): December 31, 2021 Origination Year Prior to 2017 2017 to 2021 Total Past due 30 - 59 days $ 19 $ 17 $ 36 Past due 60 - 89 days 5 3 8 Past due 90 - 179 days 7 2 9 Past due 180 days or more 16 3 19 Total past due mortgage loans 47 25 72 Total current mortgage loans 1,826 5,257 7,083 Total amortized cost of mortgage loans 1 $ 1,873 $ 5,282 $ 7,155 1 Amortized cost represents the unpaid principal balance adjusted for unamortized premiums, discounts, price adjustment fees, basis adjustments, and direct write-downs. Amortized cost excludes accrued interest receivable. The following table presents the payment status for conventional mortgage loans (dollars in millions): December 31, 2020 Origination Year Prior to 2016 2016 to 2020 Total Past due 30 - 59 days $ 19 $ 18 $ 37 Past due 60 - 89 days 9 9 18 Past due 90 - 179 days 21 21 42 Past due 180 days or more 25 17 42 Total past due mortgage loans 74 65 139 Total current mortgage loans 1,952 5,661 7,613 Total amortized cost of mortgage loans 1 $ 2,026 $ 5,726 $ 7,752 1 Amortized cost represents the unpaid principal balance adjusted for unamortized premiums, discounts, price adjustment fees, basis adjustments, and direct write-downs. Amortized cost excludes accrued interest receivable. Section 4013 of the CARES Act provides temporary relief from the accounting and reporting requirements for TDRs for certain loan modifications related to COVID-19. The modifications that qualify for this relief include any COVID-19 modification involving a conventional mortgage loan, including a forbearance arrangement, an interest rate modification, a repayment plan, or any similar arrangement that defers or delays payment of principal or interest. To be eligible under the CARES Act, the conventional loan could not have been more than 30 days past due as of December 31, 2019 with the modification occurring between March 1, 2020 and January 1, 2022. In the second quarter of 2020, the Bank elected to apply the TDR relief provided by the CARES Act to its conventional mortgage loan portfolio. As such, all COVID-19 modifications meeting the provisions of the CARES Act have been excluded from TDR classification and accounting. The Bank had $22 million and $1 million of these modifications outstanding at December 31, 2021 and 2020. COVID-19 modifications not meeting the provisions of the CARES Act continue to be assessed for TDR classification. The Bank’s servicers may grant a forbearance period to eligible borrowers who have requested forbearance based on COVID-19 related difficulties regardless of the status of the loan at the time of the request. The Bank continues to apply its accounting policy for past due loans and charge-offs to loans during the forbearance period. The accrual status for loans under forbearance will be driven by the past due status of the loan as the legal terms of the contractual arrangement have not been modified. The following table presents the unpaid principal balance of conventional loans in a forbearance plan as a result of COVID-19 (dollars in millions): December 31, 2021 2020 Past due 30 - 59 days $ — $ 3 Past due 60 - 89 days 1 6 Past due 90 days or more and in non-accrual status 5 42 Current mortgage loans 1 2 Total unpaid principal balance 1 $ 7 $ 53 1 These conventional loans in forbearance represent less than one percent of the Bank’s total mortgage loans held for portfolio at both December 31, 2021 and 2020. The following tables present other delinquency statistics for mortgage loans (dollars in millions): December 31, 2021 Amortized Cost Conventional Government-Insured Total In process of foreclosure 1 $ 4 $ 1 $ 5 Serious delinquency rate 2 — % 3 % 1 % Past due 90 days or more and still accruing interest 3 $ — $ 11 $ 11 Non-accrual mortgage loans 4 $ 86 $ — $ 86 December 31, 2020 Amortized Cost Conventional Government- Insured Total In process of foreclosure 1 $ 8 $ 1 $ 9 Serious delinquency rate 2 1 % 3 % 1 % Past due 90 days or more and still accruing interest 3 $ — $ 13 $ 13 Non-accrual mortgage loans 4 $ 93 $ — $ 93 1 Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. 2 Represents mortgage loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of total mortgage loans. Serious delinquency rate on conventional loans was less than one percent at December 31, 2021. 3 Represents government-insured mortgage loans that are 90 days or more past due. 4 Represents conventional mortgage loans that are 90 days or more past due or for which the collection of interest or principal is doubtful. At December 31, 2021 and 2020, $74 million and $52 million of conventional mortgage loans on non-accrual status were evaluated individually and do not have a related allowance for credit losses because these loans were either previously charged off to the expected recoverable value and/or the fair value of the underlying collateral is greater than the amortized cost of the loans. ALLOWANCE FOR CREDIT LOSSES The Bank evaluates mortgage loans for credit losses on a quarterly basis. Conventional Mortgage Loans Conventional mortgage loans are evaluated collectively when similar risk characteristics exists. Conventional loans that do not share risk characteristics with other pools are evaluated for expected credit losses on an individual basis. The Bank determines its allowances for credit losses on conventional loans through analyses that include consideration of various loan portfolio and collateral-related characteristics, such as past performance, current conditions, and reasonable and supportable forecasts of expected economic conditions. At both December 31, 2021 and 2020, the Bank’s allowance for credit losses on conventional mortgage loans was $1 million. For collectively evaluated loans, the Bank uses a projected cash flow model to estimate expected credit losses over the life of the loans. This model relies on a number of inputs, such as current and projected property values and interest rates, as well as historical borrower behavior experience. The Bank also incorporates associated credit enhancements when determining its estimate of expected credit losses. The Bank may incorporate a management adjustment in the allowance for credit losses for conventional mortgage loans due to changes in economic and business conditions or other factors that may not be fully captured in its model. For individually evaluated loans, the Bank uses the practical expedient for collateral-dependent assets. A mortgage loan is considered collateral-dependent when repayment is expected to be provided solely by the sale of the underlying collateral. The Bank estimates the fair value of this collateral using a property valuation model. The expected credit loss of a collateral- dependent mortgage loan is equal to the difference between the amortized cost of the loan and the estimated fair value of the collateral, less estimated selling costs and expected proceeds from PMI. The Bank records a direct charge-off of the loan balance if certain triggering criteria are met. Expected recoveries of prior charge-offs are included in the allowance for credit losses. Government-Insured Mortgage Loans The Bank invests in government-insured fixed rate mortgage loans 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, but in such instance, the Bank would have recourse against the servicer for such failure. The Bank has never experienced a credit loss on its government-insured mortgage loans. At December 31, 2021 and 2020, the Bank assessed its servicers and determined there was no expectation that a servicer would fail to remit payments due until paid in full. As a result, the Bank did not establish an allowance for credit losses for its government-insured mortgage loans at December 31, 2021 and 2020. 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. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2021 | |
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 risk management policies establish guidelines for derivatives, prohibit trading in or the speculative use of derivatives, and limit credit risk arising from derivatives. Derivative financial instruments are used by the Bank to achieve its financial and risk management objectives. The Bank reevaluates its hedging strategies periodically and may change the hedging techniques it uses or may adopt new strategies. 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 an 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. TYPES OF DERIVATIVES The Bank may use the following derivative instruments: • Interest Rate Swaps. An interest rate swap is an agreement between two entities to exchange cash flows in the future. The agreement sets the dates on which the cash flows will be exchanged and the manner in which the cash flows will be calculated. One of the simplest forms of an interest rate swap involves the promise by one party to pay cash flows equivalent to the interest on a notional amount at a predetermined fixed rate for a given period of time. In return for this promise, this party receives cash flows equivalent to the interest on the same notional amount at a variable interest rate index for the same period of time. The variable interest rate received or paid by the Bank in derivative transactions is primarily the overnight index swap (OIS) rate, based on either federal funds or SOFR. • Options. An option is an agreement between two entities that conveys the right, but not the obligation, to engage in a future transaction on some underlying security or other financial asset at an agreed-upon price during a certain period of time or on a specific date. Premiums or swap fees paid to acquire options are considered the fair value of the option at inception of the hedge and are reported as derivative assets on the Statements of Condition. • Swaptions. A swaption is an option on a swap that gives the buyer the right to enter into a specified interest rate swap at a certain time in the future. When used as a hedge, a swaption can protect the Bank against future interest rate changes. The Bank may enter into both payer and receiver swaptions. A payer swaption is the option to make fixed interest payments at a later date and a receiver swaption is the option to receive fixed interest payments at a later date. • Interest Rate Caps and Floors. In an interest rate cap agreement, a cash flow is generated if the price or interest rate of an underlying variable rises above a certain threshold (or “cap”) price. In an interest rate floor agreement, a cash flow is generated if the price or interest rate of an underlying variable falls below a certain threshold (or “floor”) price. Interest rate caps and floors are designed as protection against the interest rate on a variable rate asset or liability rising above or falling below a certain level. • Futures/Forwards Contracts. Futures and forwards contracts give the buyer the right to buy or sell a specific type of asset at a specific time at a given price. For example, certain mortgage loan purchase commitments entered into by the Bank are considered derivatives. The Bank may hedge these commitments by selling “to-be-announced” (TBA) MBS for forward settlement. A TBA represents a forward contract for the sale of MBS at a future agreed-upon date for an established price. TYPES OF HEDGED ITEMS The Bank may have the following types of hedged items: • Investment Securities. The Bank primarily invests in U.S. Treasury obligations, other U.S. obligations, GSE and TVA obligations, state or local housing agency obligations, and MBS, and classifies them as either trading, AFS, or HTM. The interest rate and prepayment risk associated with these investment securities is managed through a combination of debt issuance and derivatives. To manage interest rate risk, the Bank may fund investment securities with callable consolidated obligations or utilize interest rate swaps, caps, floors, or swaptions. Derivatives held by the Bank that are associated with trading and HTM securities, if applicable, are designated as economic hedges and derivatives held by the Bank associated with AFS securities are generally designated as a fair value hedge. • Advances. The Bank offers a wide range of fixed and variable rate advance products with different maturities, interest rates, payment characteristics, and optionality. The Bank may use derivatives to adjust the repricing and/or option characteristics of advances in order to more closely match the characteristics of its funding liabilities. In general, whenever a borrower executes a fixed rate advance or a variable rate advance with embedded options, the Bank may simultaneously execute a derivative with terms that offset the terms and embedded options, if any, in the advance. For example, the Bank may hedge a fixed rate advance with an interest rate swap where the Bank pays a fixed rate coupon and receives a variable rate coupon, effectively converting the fixed rate advance to a variable rate advance. This type of hedge is typically treated as a fair value hedge. In addition, the Bank may hedge a callable advance, which gives the borrower the option to extinguish the fixed rate advance, by entering into a cancelable interest rate swap. • Mortgage Loans. The Bank invests in fixed rate mortgage loans. The prepayment options embedded in mortgage loans can result in extensions or contractions in the expected repayment of these investments, depending on changes in actual and estimated prepayment speeds. The Bank manages the interest rate risk associated with mortgage loans through a combination of debt issuance and derivatives. The Bank may issue both callable and non-callable debt to achieve cash flow patterns and liability durations similar to those expected on the mortgage loans. The Bank may also purchase interest rate caps, floors, or swaptions to minimize the interest rate risk embedded in mortgage assets. Although these derivatives are valid economic hedges, they are not specifically linked to individual mortgage assets and, therefore, do not receive fair value hedge accounting. • Consolidated Obligations. The Bank may enter into derivatives to hedge the interest rate risk associated with its consolidated obligations. For example, the Bank may issue and hedge a fixed rate consolidated obligation with an interest rate swap where the Bank receives a fixed rate coupon and pays a variable rate coupon, effectively converting the fixed rate consolidated obligation to a variable rate consolidated obligation. This type of hedge is typically treated as a fair value hedge. The Bank may also issue variable interest rate consolidated obligations and simultaneously execute interest rate swaps to hedge the basis risk of the variable interest rate debt. Interest rate swaps used to hedge variable interest rate debt do not qualify for hedge accounting and are treated as economic hedges. This strategy of issuing consolidated obligations while simultaneously entering into derivatives enables the Bank to offer a wider range of attractively priced advances to its borrowers and may allow the Bank to reduce its funding costs. • Firm Commitments . Certain mortgage loan purchase commitments are considered derivatives. The Bank normally hedges these commitments by selling TBA MBS for forward settlement. A TBA represents a forward contract for the sale of MBS at a future agreed-upon date for an established price. The mortgage loan purchase commitment and the TBA used in the firm commitment hedging strategy are considered economic hedges. When the mortgage loan purchase commitment derivative settles, the current market value of the commitment is included with the basis of the mortgage loan and amortized over the contractual life of the mortgage loan using the level-yield method. The Bank may also hedge a firm commitment for a forward-starting advance through the use of an interest-rate swap. For additional information on the Bank’s derivatives, see “Note 1 — Summary of Significant Accounting Policies.” 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 fair value of derivative instruments and total derivative assets and liabilities. Total derivative assets and liabilities include 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): December 31, 2021 December 31, 2020 Notional Derivative Derivative Notional Derivative Derivative Derivatives designated as hedging instruments (fair value hedges) Interest rate swaps $ 57,502 $ 68 $ 136 $ 33,552 $ 46 $ 262 Derivatives not designated as hedging instruments (economic hedges) Interest rate swaps 23,664 7 43 1,817 12 73 Forward settlement agreements (TBAs) 115 — — 169 — 1 Mortgage loan purchase commitments 115 — — 177 1 — Total derivatives not designated as hedging instruments 23,894 7 43 2,163 13 74 Total derivatives before netting and collateral adjustments $ 81,396 75 179 $ 35,715 59 336 Netting adjustments and cash collateral 1 146 (176) 168 (332) Total derivative assets and derivative liabilities $ 221 $ 3 $ 227 $ 4 1 Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral, including accrued interest, held or placed with the same clearing agent and/or counterparty. At December 31, 2021 and 2020, cash collateral, including accrued interest, posted by the Bank was $342 million and $507 million. At December 31, 2021 and 2020, the Bank held cash collateral, including accrued interest, from clearing agents and/or counterparties of $20 million and $7 million. The following tables summarize the net gains (losses) on qualifying and discontinued fair value hedging relationships recorded in net interest income, including the net interest settlements on derivatives, as well as total income (expense) by hedged product recorded on the Statements of Income (dollars in millions): For the Year Ended December 31, 2021 Interest Income (Expense) Advances AFS Securities Consolidated Obligation Bonds Total interest income (expense) recorded on the Statements of Income 1 $ 472 $ 101 $ (452) Gains (losses) on fair value hedging relationships Interest rate contracts Derivatives 2 246 127 (23) Hedged items 3 (467) (267) 146 Net gains (losses) on fair value hedging relationships $ (221) $ (140) $ 123 For the Year Ended December 31, 2020 Interest Income (Expense) Advances AFS Securities Consolidated Obligation Bonds Total interest income (expense) recorded on the Statements of Income 1 $ 950 $ 206 $ (915) Gains (losses) on fair value hedging relationships Interest rate contracts Derivatives 2 (455) (283) 261 Hedged items 3 271 173 (150) Net gains (losses) on fair value hedging relationships $ (184) $ (110) $ 111 For the Year Ended December 31, 2019 Interest Income (Expense) Advances AFS Securities Consolidated Obligation Bonds Total interest income (expense) recorded on the Statements of Income 1 $ 2,466 $ 506 $ (2,289) Gains (losses) on fair value hedging relationships Interest rate contracts Derivatives 2 (223) (233) 188 Hedged items 3 276 224 (357) Net gains (losses) on fair value hedging relationships $ 53 $ (9) $ (169) 1 Amounts shown to give context to the disclosure and include total interest income (expense) of the products indicated, including coupon, prepayment fees, amortization, and derivative net interest settlements. Interest income (expense) amounts also include gains and losses on derivatives and hedged items in fair value hedging relationships. 2 Includes changes in fair value and net interest settlements on derivatives. 3 Includes changes in fair value and amortization/accretion of basis adjustments on closed hedge relationships. The following tables summarize cumulative fair value hedging adjustments and the related amortized cost of the hedged items (dollars in millions): December 31, 2021 Advances AFS Securities Consolidated Obligation Bonds Amortized cost of hedged asset/liability 1 $ 17,598 $ 6,547 $ 34,271 Fair value hedging adjustments Changes in fair value for active hedging relationships included in amortized cost $ (54) $ 73 $ 11 Basis adjustments for discontinued hedging relationships included in amortized cost 14 — (5) Total amount of fair value hedging adjustments $ (40) $ 73 $ 6 December 31, 2020 Advances AFS Securities Consolidated Obligation Bonds Amortized cost of hedged asset/liability 1 $ 17,875 $ 7,137 $ 12,163 Fair value hedging adjustments Changes in fair value for active hedging relationships included in amortized cost $ 406 $ 340 $ 161 Basis adjustments for discontinued hedging relationships included in amortized cost 21 — (10) Total amount of fair value hedging adjustments $ 427 $ 340 $ 151 1 Represents the portion of amortized cost designated as a hedged item in an active or discontinued fair value hedging relationship. The following table summarizes the components of “Net gains (losses) on derivatives” as presented on the Statements of Income (dollars in millions): For the Years Ended December 31, 2021 2020 2019 Derivatives not designated as hedging instruments (economic hedges) Interest rate swaps $ 31 $ (32) $ (34) Forward settlement agreements (TBAs) 3 (13) (5) Mortgage loan purchase commitments (3) 11 5 Net interest settlements (17) (14) (1) Net gains (losses) on derivatives $ 14 $ (48) $ (35) 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. 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, referred to as uncleared derivatives, or cleared through a clearing agent with a Clearinghouse, referred to as cleared derivatives. Once a derivative transaction has been accepted for clearing by a Clearinghouse, the derivative transaction is novated and the executing counterparty is replaced with the Clearinghouse. The Bank is not a derivative dealer and does not trade derivatives for short-term profit. For uncleared derivatives, the degree of credit risk is impacted by the extent to which master netting arrangements are included in the derivative contracts to mitigate the risk. The Bank requires collateral agreements on its uncleared derivatives. Certain of the Bank’s uncleared derivative instruments 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, unless the collateral delivery threshold is set to zero. The Bank had no uncleared derivative instruments with credit-risk-related contingent features that were in a net liability position (before cash collateral and related accrued interest) at December 31, 2021. As such, the Bank was not required to post collateral in the normal course of business. For cleared derivatives, the Clearinghouse is the Bank’s counterparty. The Bank utilizes one Clearinghouse, CME Clearing, for all cleared derivative transactions. CME Clearing notifies the clearing agent of the required initial margin and daily variation margin requirements, and the clearing agent in turn notifies the Bank. The Clearinghouse determines initial margin requirements which are considered cash collateral. 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 agent, based on credit considerations, at December 31, 2021. Variation margin requirements with CME Clearing are based on changes in the fair value of cleared derivatives and are legally characterized as daily settlement payments, rather than cash collateral. 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/payments for changes in the fair value of cleared derivatives is posted daily through a clearing agent. OFFSETTING OF DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES The Bank presents derivative instruments, related cash collateral 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. Additional information regarding these agreements is provided in “Note 1 — Summary of Significant Accounting Policies.” 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. The following tables present the fair value of derivative instruments meeting or not meeting the netting requirements and the related collateral received from or pledged to counterparties (dollars in millions): December 31, 2021 Derivative Instruments Meeting Netting Requirements Gross Amount Recognized 1 Gross Amounts of Netting Adjustments and Cash Collateral Derivative Instruments Not Meeting Netting Requirements 2 Total Derivative Assets and Total Derivative Liabilities Derivative Assets Uncleared derivatives $ 74 $ (73) $ — $ 1 Cleared derivatives 1 219 — 220 Total $ 75 $ 146 $ — $ 221 Derivative Liabilities Uncleared derivatives $ 172 $ (170) $ — $ 2 Cleared derivatives 7 (6) — 1 Total $ 179 $ (176) $ — $ 3 December 31, 2020 Derivative Instruments Meeting Netting Requirements Gross Amount Recognized 1 Gross Amounts of Netting Adjustments and Cash Collateral Derivative Instruments Not Meeting Netting Requirements 2 Total Derivative Assets and Total Derivative Liabilities Derivative Assets Uncleared derivatives $ 58 $ (58) $ 1 $ 1 Cleared derivatives — 226 — 226 Total $ 58 $ 168 $ 1 $ 227 Derivative Liabilities Uncleared derivatives $ 328 $ (324) $ — $ 4 Cleared derivatives 8 (8) — — Total $ 336 $ (332) $ — $ 4 1 Represents derivative assets and derivative liabilities prior to netting adjustments and cash collateral, including accrued interest. 2 Represents mortgage loan purchase commitments not subject to enforceable netting requirements. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2021 | |
Deposits [Abstract] | |
Deposit Liabilities Disclosures [Text Block] | Deposits The Bank offers demand and overnight deposits as well as short-term interest-bearing deposits to members and to qualifying non-members. Deposits classified as demand and overnight pay interest based on a daily interest rate. Short-term interest-bearing deposits pay interest based on a fixed rate determined at the issuance of the deposit. The following table details the Bank’s interest-bearing and non-interest-bearing deposits (dollars in millions): December 31, 2021 2020 Interest-bearing Demand and overnight $ 1,659 $ 1,586 Term 59 49 Non-interest-bearing Demand 129 273 Total $ 1,847 $ 1,908 |
Consolidated Obligations
Consolidated Obligations | 12 Months Ended |
Dec. 31, 2021 | |
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 generally 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 December 31, 2021 and 2020, the total par value of outstanding consolidated obligations of the FHLBanks was $652.9 billion and $746.8 billion. DISCOUNT NOTES The following table summarizes the Bank’s discount notes (dollars in millions): December 31, 2021 December 31, 2020 Amount Weighted Amount Weighted Par value $ 22,355 0.08 % $ 27,350 0.10 % Discounts and concessions 1 (6) (5) Fair value option valuation adjustments (1) — Total $ 22,348 $ 27,345 1 Concessions represent fees paid to dealers in connection 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): December 31, 2021 December 31, 2020 Year of Contractual Maturity Amount Weighted Amount Weighted Due in one year or less $ 38,778 0.30 % $ 29,224 0.88 % Due after one year through two years 3,928 2.06 9,398 1.10 Due after two years through three years 5,073 2.41 3,296 2.42 Due after three years through four years 1,010 2.11 3,548 3.00 Due after four years through five years 1,185 1.97 1,058 2.19 Thereafter 5,105 2.27 5,406 2.50 Total par value 55,079 0.87 % 51,930 1.36 % Premiums 138 199 Discounts and concessions 1 (17) (26) Fair value hedging adjustments 5 151 Total $ 55,205 $ 52,254 1 Concessions represent fees paid to dealers in connection with the issuance of certain consolidated obligation bonds. Bonds are issued with fixed or variable rate payment terms that may use a variety of indices for interest rate resets, such as SOFR. To meet the specific needs of certain investors, both fixed and variable rate bonds may also contain certain embedded features, which result in complex coupon payment terms and call features. When these consolidated bonds are issued, the Bank may enter into derivatives containing features that offset the terms and embedded options, if any, of the consolidated bond obligations. The following table summarizes the Bank’s bonds outstanding by call features (dollars in millions): December 31, 2021 2020 Non-callable or non-putable $ 49,422 $ 48,610 Callable 5,657 3,320 Total par value $ 55,079 $ 51,930 The following table summarizes the Bank’s bonds outstanding by year of contractual maturity or next call date (dollars in millions): December 31, Year of Contractual Maturity or Next Call Date 2021 2020 Due in one year or less $ 44,071 $ 31,749 Due after one year through two years 3,908 10,038 Due after two years through three years 3,831 3,326 Due after three years through four years 805 3,648 Due after four years through five years 753 805 Thereafter 1,711 2,364 Total par value $ 55,079 $ 51,930 |
Affordable Housing Program
Affordable Housing Program | 12 Months Ended |
Dec. 31, 2021 | |
Affordable Housing Program [Abstract] | |
Affordable Housing Program [Text Block] | Affordable Housing Program The FHLBank Act requires each FHLBank to establish and fund an AHP, which provides subsidies in the form of direct grants or below-market interest rate advances to members who use the funds to assist in the purchase, construction, or rehabilitation of housing for very low-, low-, or moderate-income households. Each FHLBank is required to contribute to its AHP the greater of 10 percent of its annual income subject to assessment, or its prorated sum required to ensure the aggregate contribution by the FHLBanks is no less than $100 million for each year. For purposes of the AHP assessment, income subject to assessment is defined as net income before AHP assessments, plus interest expense related to MRCS. The exclusion of interest expense related to MRCS is a regulatory interpretation of the Finance Agency. The Bank accrues the AHP assessment monthly based on its income subject to assessment and reduces the AHP liability as program funds are distributed. If the Bank experienced a net loss for a full year, it would have no obligation to the AHP for the year, because its required annual AHP contribution is limited to its annual income subject to assessment. If the aggregate 10 percent AHP calculation previously discussed was less than $100 million for the FHLBanks (i.e., a shortfall), each FHLBank would be required to contribute a prorated sum to ensure that the aggregate contribution by the FHLBanks equals $100 million. The pro-ration would be made on the basis of an FHLBank’s income in relation to the income of all FHLBanks for the year, subject to the annual income limitation previously discussed. In addition to the required AHP assessment, the Bank’s Board of Directors may elect to make voluntary contributions to the AHP. There was no contribution shortfall, as described above, in 2021, 2020, or 2019. If an FHLBank finds that its required contributions are contributing to its financial instability, it may apply to the Finance Agency for a temporary suspension of its contributions under the FHLBank Act. The Bank did not make any such application in 2021, 2020, or 2019. The following table presents a rollforward of the Bank’s AHP liability (dollars in millions): For the Years Ended December 31, 2021 2020 2019 Balance, beginning of year $ 162 $ 157 $ 153 Assessments 23 41 44 Disbursements (54) (36) (40) Balance, end of year $ 131 $ 162 $ 157 . |
Capital
Capital | 12 Months Ended |
Dec. 31, 2021 | |
Banking Regulation, Total 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, and repurchased only at the stated par value. The Bank issues a single class of capital stock (Class B capital stock) and has two subclasses of Class B 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 on the Bank’s Statements of Condition and 0.10 percent of its standby letters of credit. All capital stock issued is subject to a notice of redemption period of five years. 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 both December 31, 2021 and 2020, the Bank’s excess capital stock outstanding was less than $1 million. MANDATORILY REDEEMABLE CAPITAL STOCK The Bank reclassifies capital stock subject to redemption from equity to a liability, which represents MRCS, 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 MRCS are classified as interest expense on the Statements of Income. The Bank recorded interest expense on MRCS of $2 million, $5 million, and $12 million for the years ended December 31, 2021, 2020, and 2019. 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. On the effective date of the final rule, the Bank reclassified the total outstanding capital stock held by all of the captive insurance companies that were Bank members to MRCS. On February 19, 2021, all remaining captive insurance company members that were admitted as members prior to September 12, 2014 had their membership terminated. The Bank immediately redeemed all membership stock from these captive insurance companies; however, the remaining activity-based stock is subject to the five year redemption period. The following table summarizes changes in MRCS (dollars in millions): For the Years Ended December 31, 2021 2020 2019 Balance, beginning of period $ 52 $ 206 $ 255 Capital stock reclassified to (from) MRCS, net 81 7 11 Net payments for repurchases/redemptions of MRCS (104) (161) (60) Balance, end of period $ 29 $ 52 $ 206 The following table summarizes the Bank’s MRCS by year of contractual redemption (dollars in millions): December 31, Year of Contractual Redemption 1 2021 2020 Due in one year or less $ 10 $ — Due after one year through two years 1 11 Due after two years through three years — 2 Due after three years through four years 1 — Due after four years through five years 9 — Thereafter 2 — 27 Past contractual redemption date due to outstanding activity with the Bank 8 12 Total $ 29 $ 52 1 At the Bank’s election, MRCS 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 MRCS with certain captive insurance companies whose membership terminated on February 19, 2021. As their five year redemption period did not start until the membership termination date, all associated MRCS was reported in this line item as of December 31, 2020. RESTRICTED RETAINED EARNINGS The Bank entered into a JCE Agreement with all of the other FHLBanks in 2011. The JCE Agreement, as amended, is intended to enhance the capital position of the FHLBanks over time. Under the JCE Agreement, each FHLBank is required to allocate 20 percent of its quarterly net income to a separate restricted retained earnings account until the balance of that account, calculated as of the last day of each calendar, equals at least one percent of its average balance of outstanding consolidated obligations for the calendar quarter. The restricted retained earnings are not available to pay dividends. At December 31, 2021 and 2020, the Bank’s restricted retained earnings account totaled $617 million and $576 million. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes changes in AOCI (dollars in millions): Net unrealized gains (losses) on AFS securities (Note 4) Pension and postretirement benefits Total AOCI Balance, December 31, 2018 $ 87 $ (3) $ 84 Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) on AFS securities (39) — (39) Reclassification from AOCI to net income Amortization - pension and postretirement — (1) (1) Net current period other comprehensive income (loss) (39) (1) (40) Balance, December 31, 2019 48 (4) 44 Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) on AFS securities 4 — 4 Net current period other comprehensive income (loss) 4 — 4 Balance, December 31, 2020 52 (4) 48 Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) on AFS securities 36 — 36 Net current period other comprehensive income (loss) 36 — 36 Balance, December 31, 2021 $ 88 $ (4) $ 84 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 operational risk capital requirements, all calculated in accordance with Finance Agency regulations. Only permanent capital, defined as Class B capital stock (including MRCS), 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 MRCS) and retained earnings. • 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. The Bank did not hold any nonpermanent capital at December 31, 2021 and 2020. In addition to the requirements previously discussed, the Finance Agency Advisory Bulletin on capital stock (the Capital Stock AB) requires each FHLBank to maintain at all times a ratio of at least two percent of capital stock to total assets. For purposes of the Capital Stock AB, capital stock includes MRCS. The capital stock to total assets ratio is measured on a daily average basis at month end. 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): December 31, 2021 December 31, 2020 Required Actual Required Actual Regulatory capital requirements Risk-based capital $ 585 $ 5,783 $ 704 $ 5,744 Regulatory capital $ 3,434 $ 5,783 $ 3,508 $ 5,744 Leverage capital $ 4,293 $ 8,675 $ 4,385 $ 8,616 Capital-to-assets ratio 4.00 % 6.74 % 4.00 % 6.55 % Capital stock-to-assets ratio 2.00 % 4.08 % 2.00 % 3.78 % Leverage ratio 5.00 % 10.10 % 5.00 % 9.83 % CAPITAL CLASSIFICATION DETERMINATION The Finance Agency determines each FHLBank’s capital classification on at least a quarterly basis. If an FHLBank is determined to be other than adequately capitalized, that FHLBank becomes subject to additional supervisory authority by the Finance Agency. Before implementing a reclassification, the Director of the Finance Agency is required to provide the FHLBank with written notice of the proposed action and an opportunity to submit a response. As of the most recent notification date by the Finance Agency, the Bank was classified as adequately capitalized. |
Pension and Postretirement Bene
Pension and Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Pension and Postretirement Benefit Plans QUALIFIED DEFINED BENEFIT MULTIEMPLOYER PLAN The Bank participates in the Pentegra Defined Benefit Plan for Financial Institutions (Pentegra DB Plan), a tax-qualified defined benefit pension plan. In August of 2016, the Bank’s Board of Directors elected to freeze the Pentegra DB Plan effective January 1, 2017. After the freeze, participants no longer accrue new benefits under the Pentegra DB Plan. The Pentegra DB Plan is treated as a multiemployer plan for accounting purposes, but operates as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code. As a result, certain multiemployer plan disclosures are not applicable to the Pentegra DB Plan. Under the Pentegra DB Plan, contributions made by a participating employer may be used to provide benefits to employees of other participating employers because assets contributed by an employer are not segregated in a separate account or restricted to provide benefits only to employees of that employer. Also, in the event a participating employer is unable to meet its contribution requirements, the required contributions for the other participating employers could increase proportionately. The Bank has two defined benefit pension plans under the same multiemployer plan. Prior to the plan freeze, employees of the Des Moines Bank were eligible to participate in the Des Moines Pentegra Defined Benefit Pension Plan (Des Moines Bank DB Plan) if hired on or before December 31, 2010. Employees previously employed by the Seattle Bank were eligible to participate in the Seattle Pentegra Defined Benefit Pension Plan (Seattle Bank DB Plan) if they were hired before January 1, 2005. The Pentegra DB Plan operates on a fiscal year from July 1 through June 30. The Pentegra DB Plan files one Form 5500 on behalf of all employers who participate in the plan. The Employer Identification Number is 13-5645888 and the three-digit plan number is 333. There are no collective bargaining agreements in place that require contributions to the Plan. The Pentegra DB Plan’s annual valuation process includes calculating the Plan’s funded status and separately calculating the funded status of each participating employer. The funded status is defined as the market value of assets divided by the funding target (100 percent of the present value of all benefit liabilities accrued at that date). As permitted by ERISA, the Pentegra DB Plan accepts contributions for the prior plan year up to eight and a half months after the asset valuation date. As a result, the market value of assets at the valuation date (July 1) will increase by any subsequent contributions designated for the immediately preceding plan year ended June 30. The most recent Form 5500 available for the Pentegra DB Plan is for the year ended June 30, 2020. The Bank’s contributions for the plan years ended June 30, 2020 and June 30, 2019 were not more than five percent of the total contributions to the Pentegra DB Plan. The following table summarizes the net pension cost and funded status of the Pentegra DB Plan (dollars in millions): 2021 2020 2019 Net pension cost 1 $ 9 $ 34 $ 2 Pentegra DB Plan’s funded status as of July 1 2 129.62 % 108.50 % 108.62 % Des Moines Bank DB Plan’s funded status as of July 1 144.35 % 99.57 % 102.81 % Seattle Bank DB Plan’s funded status as of July 1 139.03 % 99.81 % 103.62 % 1 Represents the net pension cost charged to compensation and benefits expense on the Statements of Income for the years ended December 31, 2021, 2020, and 2019. During 2021 and 2020, the Bank made a $8 million and $32 million discretionary contribution to the plan. 2 The Pentegra DB Plan’s funded status is preliminary and may further increase because plan participants are permitted to make contributions through March 15 of the following year. The final funded status as of July 1, 2021 will not be available until the Form 5500 for the plan year July 1, 2021 through June 30, 2022 is filed (this Form 5500 is due to be filed no later than April 2023). The final funded status as of July 1, 2020 will not be available until the Form 5500 for the plan year July 1, 2020 through June 30, 2021 is filed (this Form 5500 is due to be filed no later than April 2022). OTHER POSTRETIREMENT BENEFIT PLANS In addition to the Pension Plan, the Bank has one qualified defined contribution benefit plan, the Federal Home Loan Bank of Des Moines 401(k) Savings Plan. The Bank also offers the Benefit Equalization Plan (BEP), a nonqualified retirement plan which includes both a nonqualified defined contribution plan and a nonqualified defined benefit plan. In August of 2016, the Bank’s Board of Directors elected to freeze the BEP defined benefit plan effective January 1, 2017. After the freeze, participants no longer accrue new benefits under the BEP defined benefit plan. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2021 | |
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. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., exit price). The fair value hierarchy requires an entity to maximize the use of significant observable inputs and minimize the use of significant 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. An active market for an asset or liability is a market in which the transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. • 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 and implied volatilities), and (iv) market-corroborated inputs. • Level 3 Inputs. Unobservable inputs for the asset or liability. Valuations are derived from techniques that use significant assumptions not observable in the market, which may include pricing models, discounted cash flow models, or similar techniques. 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. The Bank had no transfers of assets or liabilities into or out of Level 3 of the fair value hierarchy during the years ended December 31, 2021, 2020, or 2019. The following table summarizes the carrying value, fair value, and fair value hierarchy of the Bank’s financial instruments (dollars in millions). The Bank records trading securities, AFS securities, derivative assets, derivative liabilities, financial instruments held under the fair value option, and certain other assets at fair value on a recurring basis, and on occasion certain impaired mortgage loans held for portfolio on a non-recurring basis. The Bank records all other financial assets and liabilities at amortized cost. 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. December 31, 2021 Fair Value Financial Instruments Carrying Value Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Total Assets Cash and due from banks $ 295 $ 295 $ — $ — $ — $ 295 Interest-bearing deposits 416 — 416 — — 416 Securities purchased under agreements to resell 12,450 — 12,450 — — 12,450 Federal funds sold 4,690 — 4,690 — — 4,690 Trading securities 1,169 — 1,169 — — 1,169 Available-for-sale securities 13,389 — 13,389 — — 13,389 Held-to-maturity securities 1,328 — 1,400 5 — 1,405 Advances 44,111 — 44,397 — — 44,397 Mortgage loans held for portfolio, net 7,578 — 7,694 81 — 7,775 Accrued interest receivable 84 — 84 — — 84 Derivative assets, net 221 — 75 — 146 221 Other assets 44 44 — — — 44 Liabilities Deposits (1,847) — (1,847) — — (1,847) Consolidated obligations Discount notes (22,348) — (22,348) — — (22,348) Bonds (55,205) — (55,581) — — (55,581) Total consolidated obligations (77,553) — (77,929) — — (77,929) Mandatorily redeemable capital stock (29) (29) — — — (29) Accrued interest payable (97) — (97) — — (97) Derivative liabilities, net (3) — (179) — 176 (3) 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 (dollars in millions): December 31, 2020 Fair Value Financial Instruments Carrying Value Level 1 Level 2 Level 3 Netting Adjustments and Cash Collateral 1 Total Assets Cash and due from banks $ 978 $ 978 $ — $ — $ — $ 978 Interest-bearing deposits 401 — 401 — — 401 Securities purchased under agreements to resell 4,800 — 4,800 — — 4,800 Federal funds sold 3,695 — 3,695 — — 3,695 Trading securities 4,875 — 4,875 — — 4,875 Available-for-sale securities 15,910 — 15,910 — — 15,910 Held-to-maturity securities 1,816 — 1,915 6 — 1,921 Advances 46,530 — 47,146 — — 47,146 Mortgage loans held for portfolio, net 8,242 — 8,443 75 — 8,518 Accrued interest receivable 97 — 97 — — 97 Derivative assets, net 227 — 59 — 168 227 Other assets 39 39 — — — 39 Liabilities Deposits (1,908) — (1,908) — — (1,908) Consolidated obligations Discount notes (27,345) — (27,346) — — (27,346) Bonds (52,254) — (53,246) — — (53,246) Total consolidated obligations (79,599) — (80,592) — — (80,592) Mandatorily redeemable capital stock (52) (52) — — — (52) Accrued interest payable (145) — (145) — — (145) Derivative liabilities, net (4) — (336) — 332 (4) 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 The valuation techniques and primary inputs used to develop the measurement of fair value for assets and liabilities that are measured at fair value on a recurring or non-recurring basis on the Statements of Condition are outlined below. Trading and AFS Investment Securities. The Bank’s valuation technique incorporates prices from multiple 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 its 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. 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 designated pricing services, the Bank obtains prices from dealers. As of December 31, 2021 and 2020, multiple prices were received for the majority of the Bank’s trading and AFS investment securities. 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. 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. Derivative Assets and Liabilities and the Related Hedged Items. The fair value of derivatives is generally estimated using standard valuation techniques such as discounted cash flow analyses and comparisons to similar instruments, and includes variation margin payments for daily settled contracts. 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/payments 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 have collateral delivery thresholds. 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 related cash collateral. 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 result in a receivable to the Bank, they are classified as an asset and, if classified as a payable to the clearing agent or counterparty, 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 federal funds OIS or SOFR OIS curve depending on the terms of the derivative agreement. • Forward interest rate assumption . The Bank utilizes the swap curve of the instrument’s index rate. • 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 loan purchase commitments, the Bank utilizes TBA securities prices adjusted for factors such as credit risk and servicing spreads. For the related hedged items, the fair value is estimated using a discounted cash flow analyses which typically considers the following inputs: • Discount rate assumption . The Bank utilizes the designated benchmark interest rate curve. • Volatility assumption . Market-based expectations of future interest rate volatility implied from current market prices for similar options. 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. Consolidated Obligation Discount Notes Recorded under the Fair Value Option . The fair value of consolidated obligation discount notes recorded under the fair value option is determined by calculating the present value of the expected future cash flows. The discount rates used in the present value calculations are for consolidated obligations with similar terms. The Bank uses the consolidated obligation curve for measuring the fair value of these consolidated obligations, which is a market-observable curve constructed by the Office of Finance. This 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. 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 on the Statements of Condition (dollar s in millions): December 31, 2021 Recurring Fair Value Measurements Level 1 Level 2 Level 3 Netting Adjustments and Cash Collateral 1 Total Assets Trading securities U.S. Treasury obligations $ — $ 496 $ — $ — $ 496 Other U.S. obligations — 102 — — 102 GSE and TVA obligations — 60 — — 60 Other non-MBS — 201 — — 201 GSE multifamily MBS — 310 — — 310 Total trading securities — 1,169 — — 1,169 Available-for-sale securities Other U.S. obligations — 1,156 — — 1,156 GSE and TVA obligations — 983 — — 983 State or local housing agency obligations — 488 — — 488 Other non-MBS — 288 — — 288 U.S. obligations single-family MBS — 2,909 — — 2,909 GSE single-family MBS — 277 — — 277 GSE multifamily MBS — 7,288 — — 7,288 Total available-for-sale securities — 13,389 — — 13,389 Derivative assets, net Interest-rate related — 75 — 146 221 Other assets 44 — — — 44 Total recurring assets at fair value $ 44 $ 14,633 $ — $ 146 $ 14,823 Liabilities Discount notes 2 $ — $ (22,348) $ — $ — $ (22,348) Derivative liabilities, net Interest-rate related — (179) — 176 (3) Total recurring liabilities at fair value $ — $ (22,527) $ — $ 176 $ (22,351) 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 on the Statements of Condition (dollars in millions): December 31, 2020 Recurring Fair Value Measurements Level 1 Level 2 Level 3 Netting Adjustments and Cash Collateral 1 Total Assets Trading securities U.S Treasury obligations $ — $ 4,069 $ — $ — $ 4,069 Other U.S. obligations — 114 — — 114 GSE and TVA obligations — 64 — — 64 Other non-MBS — 246 — — 246 GSE multifamily MBS — 382 — — 382 Total trading securities — 4,875 — — 4,875 Available-for-sale securities Other U.S. obligations — 1,672 — — 1,672 GSE and TVA obligations — 1,022 — — 1,022 State or local housing agency obligations — 693 — — 693 Other non-MBS — 302 — — 302 U.S. obligations single-family MBS — 3,544 — — 3,544 GSE single-family MBS — 446 — — 446 GSE multifamily MBS — 8,231 — — 8,231 Total available-for-sale securities — 15,910 — — 15,910 Derivative assets, net Interest-rate related — 58 — 168 226 Mortgage loan purchase commitments — 1 — — 1 Total derivative assets, net — 59 — 168 227 Other assets 39 — — — 39 Total recurring assets at fair value $ 39 $ 20,844 $ — $ 168 $ 21,051 Liabilities Derivative liabilities, net Interest-rate related $ — $ (335) $ — $ 332 $ (3) Forward settlement agreements (TBAs) — (1) — — (1) Total derivative liabilities, net — (336) — 332 (4) Total recurring liabilities at fair value $ — $ (336) $ — $ 332 $ (4) 1 Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. FAIR VALUE ON A NON-RECURRING BASIS The Bank measures certain impaired mortgage loans held for portfolio at Level 3 fair value on a non-recurring basis. These assets are subject to fair value adjustments in certain circumstances. At December 31, 2021 and 2020, impaired mortgage loans held for portfolio recorded at fair value as a result of a non-recurring change in fair value were $4 million and $7 million. These fair values were as of the date the fair value adjustment was recorded during the years ended December 31, 2021 and 2020. 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, interest expense, and the discount amortization on fair value option discount notes are recorded as part of net interest income on the Statements of Income. The remaining changes are recorded as “Net gains (losses) on financial instruments held at fair value” on the Statements of Income. For the year ended December 31, 2021, net gains on financial instruments held at fair value (i.e., discount notes) were $1 million and the Bank determined no credit risk adjustments for nonperformance were necessary. In determining that no credit risk adjustments were necessary, the Bank considered the following factors: • The Bank is a federally chartered GSE, and as a result of this status, the Bank’s consolidated obligations have historically received the same credit rating as the government bond credit rating of the United States, even though they are not obligations of the United States and are not guaranteed by the United States. • The Bank is jointly and severally liable with the other FHLBanks for the payment of principal and interest on all consolidated obligations of the FHLBanks. The following table summarizes the difference between the unpaid principal balance and fair value of outstanding instruments for which the fair value option has been elected (dollars in millions): December 31, 2021 Unpaid Principal Balance Fair Value Fair Value Over (Under) Unpaid Principal Discount Notes $ 22,355 $ 22,348 $ (7) The Bank did not have any fair value option instruments outstanding as of December 31, 2020. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
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 December 31, 2021 and 2020 , the total par value of outstanding consolidated obligations issued on behalf of other FHLBanks for which the Bank is jointly and severally liable was $575.5 billion and $667.5 billion. The following table summarizes additional off-balance sheet commitments for the Bank (dollars in millions): December 31, 2021 December 31, 2020 Expire Expire Total Total Standby letters of credit 1,2 $ 8,117 $ 42 $ 8,159 $ 9,361 Standby bond purchase agreements 2 189 308 497 797 Commitments to purchase mortgage loans 115 — 115 177 Commitments to fund advances 2 1,726 2 1,728 252 1 Excludes commitments to issue standby letters of credit, when applicable. At both December 31, 2021 and 2020 , the Bank had no commitments to issue standby letters of credit. 2 The Bank has deemed it unnecessary to record any liability for credit losses on these agreements at December 31, 2021 and 2020 . Standby Letters of Credit . The Bank issues standby letters of credit on behalf of its members to support certain obligations of the members to third-party beneficiaries. Standby letters of credit may be offered to assist members and non-member housing associates in facilitating residential housing finance, community lending, and asset-liability management, and to provide liquidity. In particular, members often use standby letters of credit as collateral for deposits from federal and state government agencies. 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 member either reimburses the Bank for the amount drawn or, subject to the Bank’s discretion, the amount drawn may be converted into a collateralized advance to the member. The original terms of standby letters of credit outstanding at December 31, 2021 range from less than one month to seven years, currently no later than 2028. The carrying values of guarantees related to standby letters of credit are recorded in “Other liabilities” on the Statements of Condition and amounted to $2 million at both December 31, 2021 and 2020 . 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. All standby letters of credit, similar to advances, are fully collateralized at the time of issuance and subject to member borrowing limits as established by the Bank. Standby Bond Purchase Agreements . The Bank has entered into standby bond purchase agreements with state housing associates within its district pursuant to which, 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 and typically allows the Bank to terminate the agreement upon the occurrence of a default event of the issuer. At December 31, 2021, the Bank had standby bond purchase agreements with seven 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 2026. During the years ended December 31, 2021, 2020, and 2019, the Bank was not required to purchase any bonds under these agreements. Commitments to Purchase Mortgage Loans . The Bank enters into commitments that unconditionally obligate it to purchase mortgage loans from its members. These commitments are considered derivatives and their estimated fair value at December 31, 2021 and 2020 is reported in “Note 7 — Derivatives and Hedging Activities” as mortgage loan purchase commitments. Commitments to Fund Advances. The Bank enters into commitments to fund additional advances up to 24 months in the future. At December 31, 2021 and 2020, the Bank had commitments to fund advances of $1.7 billion and $252 million. Other Commitments . For each MPF master commitment, the Bank’s potential loss exposure prior to the PFI’s credit enhancement obligation is estimated and tracked in a memorandum account called the first loss account ( FLA ). 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 $163 million and $154 million at December 31, 2021 and 2020 . Legal Proceedings . The Bank is subject to various pending legal proceedings arising in the normal course of business. As previously noted in the Bank’s 2020 Form 10-K, certain of these legal proceedings involved pending litigation with a current member of the Bank stemming from alleged breaches by the member under the Bank’s MPF program and the member’s failure to repay its outstanding advances owed to the Bank. During the second quarter of 2021, all litigation related to this member’s failure to repay its outstanding advances was resolved. After consultation with legal counsel, management does not anticipate that the ultimate liability, if any, arising out of the remaining MPF litigation with this member bank will have a material adverse effect on the Bank’s financial condition or results of operations. The Bank records legal expenses related to litigation settlements as incurred in other expense on 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 years ended December 31, 2021 and 2019, the Bank did not recognize any gains on litigation settlements. During the year ended December 31, 2020, the Bank settled all of its remaining private-label MBS claims, as previously discussed in its 2020 Form 10-K, and recognized $120 million in net gains on litigation settlements through other income (loss). The Bank is not currently aware of any pending or threatened legal proceedings to which it is a party that it believes could have a material impact on its financial condition, results of operations, or cash flows. |
Activities with Stockholders
Activities with Stockholders | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Activities with Stockholders [Text Block] | Activities with Stockholders 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. All transactions with stockholders are entered into in the ordinary course of business. 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): December 31, 2021 December 31, 2020 Amount % of Total Amount % of Total Advances $ 17 — $ 1,526 3 Mortgage loans 119 2 154 2 Deposits 15 1 17 1 Capital stock 43 1 110 3 |
Activities with Other FHLBanks
Activities with Other FHLBanks | 12 Months Ended |
Dec. 31, 2021 | |
Activities with Other FHLBanks [Abstract] | |
Activities with Other FHLBanks [Text Block] | Activities with Other FHLBanks Overnight Funds . The Bank may lend or borrow unsecured overnight funds to or from other FHLBanks. All such transactions are at current market rates. The following table summarizes loan activity to other FHLBanks during the years ended December 31, 2021, 2020, and 2019 (dollars in millions): Other FHLBank Beginning Loans Principal Ending 2021 Chicago $ — $ 301 $ (301) $ — 2020 Boston $ — $ 250 $ (250) $ — Pittsburgh — 5 (5) — $ — $ 255 $ (255) $ — 2019 Atlanta $ — $ 565 $ (565) $ — Indianapolis — 550 (550) — Topeka — 150 (150) — $ — $ 1,265 $ (1,265) $ — The following table summarizes borrowing activity from other FHLBanks during the years ended December 31, 2021, 2020, and 2019 (dollars in millions): Other FHLBank Beginning Borrowing Principal Ending 2021 Chicago $ — $ 5 $ (5) $ — 2020 Pittsburgh $ — $ 5 $ (5) $ — 2019 Atlanta $ 500 $ 400 $ (900) $ — |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent EventsSubsequent events have been evaluated from January 1, 2022, through the time of the Form 10-K filing with the Securities and Exchange Commission. No material subsequent events requiring disclosure were identified. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Reference Rate Reform (ASU 2020-04)On March 12, 2020, the Financial Accounting Standards Board (FASB) issued temporary guidance to ease the potential burden in accounting for reference rate reform related to the transition from LIBOR. The guidance provides optional expedients and exceptions for applying GAAP to transactions affected by reference rate reform, if certain criteria are met. These transactions include contract modifications, hedging relationships, and the sale/transfer of HTM debt securities. This guidance became effective immediately and the Bank may elect to apply the amendments through December 31, 2022. The Bank continues to evaluate the impact of the guidance and anticipates electing the applicable optional expedients as reference rate activities occur. The effect of this guidance and these activities on the Bank’s financial condition, results of operations, and cash flows depends on the nature of the transactions and market conditions at the time any election is made. |
Basis of Accounting | BASIS OF PRESENTATION The Bank prepares its financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP). |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make subjective assumptions and estimates that may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of income and expense. The most significant of these estimates include those used in conjunction with fair value estimates and derivatives and hedging activities. Actual results could significantly differ from these estimates. |
Investments | Debt Securities The Bank classifies investment securities as trading, available-for-sale (AFS), or held-to-maturity (HTM) at the date of acquisition. Purchases and sales of investment securities are recorded on a trade date basis. The Bank records interest on investment securities to interest income as earned. The Bank generally amortizes/accretes premiums and discounts on AFS and HTM investment securities to income using the contractual level-yield method (level-yield method). In addition, the Bank uses this method to amortize/accrete fair value hedging adjustments. The level-yield method recognizes the income effects of these adjustments over the contractual life of the securities based on the actual behavior of the underlying assets, including adjustments for actual prepayment activities, and reflects the contractual terms of the securities without regard to changes in estimated prepayments based on assumptions about future borrower behavior. For callable AFS and HTM non-mortgage-backed securities (MBS) purchased at a premium, the Bank amortizes the premium to the next contractual call date. The Bank computes gains and losses on sales of investment securities using the specific identification method and includes these gains and losses in other income (loss). Trading . Securities classified as trading are carried at fair value and generally entered into for liquidity purposes. In addition, the Bank classifies certain securities as trading that do not qualify for hedge accounting, 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. The Bank records changes in the fair value of these securities through other income (loss) as “Net gains (losses) on trading securities.” Finance Agency regulation prohibits trading in or the speculative use of these instruments. Available-for-Sale. Securities that are not classified as trading or HTM are classified as AFS and carried at fair value. The Bank records changes in the fair value of these securities through accumulated other comprehensive income (loss) (AOCI) as “Net unrealized gains (losses) on available-for-sale securities.” For AFS securities that have been hedged and qualify as a fair value hedge, the Bank records the portion of the change in the fair value of the security related to the risk being hedged in AFS interest income together with the related change in fair value of the derivative, and records the remainder of the change in fair value through AOCI as “Net unrealized gains (losses) on available-for-sale securities.” Held-to-Maturity . Securities that the Bank has both the ability and intent to hold to maturity are classified as HTM and carried at amortized cost, which represents the amount at which an investment is acquired, adjusted for periodic principal repayments, amortization of premiums, and accretion of discounts. Accrued interest receivable is recorded separately on the Statements of Condition. Certain changes in circumstances may cause the Bank to change its intent to hold a security to maturity without calling into question its intent to hold other debt securities to maturity in the future. Thus, the sale or transfer of a HTM security due to certain changes in circumstances, such as evidence of significant deterioration in the issuer’s creditworthiness or changes in regulatory requirements, is not considered to be inconsistent with its original classification. Other events that are isolated, non-recurring, and unusual for the Bank that could not have been reasonably anticipated may cause the Bank to sell or transfer an HTM security without necessarily calling into question its intent to hold other debt securities to maturity. In addition, the sale of a debt security that meets either of the following two conditions would not be considered inconsistent with the original classification of that security: (i) the sale occurs near enough to its maturity date (for example, within three months of maturity), or call date if exercise of the call is probable, that interest rate risk is substantially eliminated as a pricing factor and the changes in market interest rates would not have a significant effect on the security’s fair value or (ii) the sale occurs after the Bank has already collected a substantial portion (at least 85 percent) of the principal outstanding at acquisition due either to prepayments on the debt security or to scheduled payments on the debt security payable in equal installments (both principal and interest) over its term. |
Advances | Advances Advances (secured loans to members, former members, or eligible housing associates) are carried at amortized cost, which is net of premiums, discounts, and fair value hedging adjustments unless the Bank has elected the fair value option, in which case, the advances are carried at fair value. For advances carried at amortized cost, accrued interest receivable is recorded separately on the Statements of Condition. The Bank records interest on advances to interest income as earned. The Bank amortizes/accretes premiums, discounts, and fair value hedging adjustments on advances to income using the level-yield method over the contractual life of the advances. Past Due and Non-Accrual Advances. An advance is considered past due for financial reporting purposes if default of contractual principal or interest exists for a period of 30 days or more. Past due advances may consist of advances still accruing interest or advances on non-accrual status. An advance is placed on non-accrual status when full payment of principal and interest is not reasonably assured, regardless of delinquency status, or when principal or interest has been in default for a period of 90 days or more, unless the advance is both well-secured and in the process of collection. In general, the Bank would not expect advances to be placed on non-accrual status as they are required by regulation to be fully secured by underlying collateral. Prepayment Fees. The Bank charges a borrower a prepayment fee when the borrower prepays certain advances before the original maturity. For 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 the hedged item fair value hedging adjustments, if applicable, in advance interest income on the Statements of Income. Advance Modifications. In cases in which the Bank funds a new advance to a borrower concurrently with or within a short period of time before or after the prepayment of an existing advance, the Bank evaluates whether the new advance meets the accounting criteria to qualify as a modification of an existing advance or whether it constitutes a new advance. The Bank compares the present value of cash flows on the new advance to the present value of cash flows remaining on the existing advance. If there is at least a ten percent difference in the present value of the cash flows or if the Bank concludes the difference between the advances is more than minor based on a qualitative assessment of the modifications made to the original contractual terms, then the advance is accounted for as a new advance and all prepayment fees or credits net of fair value hedging adjustments are recognized immediately to advance interest income on the Statements of Income. In all other instances, the advance is accounted for as a modification. When a new advance qualifies as a modification of an existing advance, any prepayment fee, net of the hedged item fair value hedging adjustments, as well as any outstanding premiums, discounts, or other adjustments on the prepaid advance, are deferred, recorded in the basis of the modified advance, and amortized over the contractual life of the modified advance using a level-yield methodology to advance interest income. |
Mortgage Loans | Mortgage Loans Held for Portfolio The Bank classifies mortgage loans that it has the intent and ability to hold for the foreseeable future, or until maturity or payoff, as held for portfolio. Accordingly, these mortgage loans are reported net of premiums, discounts, basis adjustments from mortgage loan purchase commitments, charge-offs, and the allowance for credit losses. The Bank records interest on mortgage loans to interest income as earned. The Bank amortizes/accretes premiums, discounts, and basis adjustments on mortgage loan purchase commitments to income using the level-yield method over the contractual life of the mortgage loans. Accrued interest receivable is recorded separately on the Statements of Condition. |
Non-Accrual Loans | Past Due and Non-Accrual Loans. A mortgage loan is considered past due if the borrower has failed to make contractual principal and/or interest payments for a period of 30 days or more. The Bank places a conventional mortgage loan on non-accrual status if it is determined that either the collection of interest or principal is doubtful or interest or principal is 90 days or more past due. The Bank does not place a government-insured mortgage loan on non-accrual status due to the U.S. Government guarantee or insurance on the loan and contractual obligation of the loan servicer to repurchase the loan when certain criteria are met. For those mortgage loans placed on non-accrual status, accrued but uncollected interest is reversed against interest income and cash payments received are recorded as a reduction of principal. In addition, premiums, discounts, and basis adjustments from mortgage loan purchase commitments are not amortized while a loan is on non-accrual status. A loan on non-accrual status may be restored to accrual status when none of its contractual principal and interest is due and unpaid and the Bank expects repayment of the remaining contractual principal and interest. |
Troubled Debt Restructurings | Troubled Debt Restructurings . The Bank considers a troubled debt restructuring (TDR) to have occurred when a concession is granted to a borrower for economic or legal reasons related to the borrower’s financial difficulties and that concession would not have been considered otherwise. The Bank’s TDRs generally 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 does not consider government-insured mortgage loans to be TDRs due to the U.S. Government guarantee or insurance on the loan and contractual obligation of the loan servicer to repurchase the loan when certain criteria are met. The Bank places all TDRs on non-accrual status at the time of modification; however, TDRs may be subsequently restored to accrual status if they meet the criteria noted in the non-accrual section above. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) was signed into law. Section 4013 of the CARES Act provided optional, temporary relief from the accounting and reporting requirements for TDRs for certain loan modifications for which borrowers were adversely affected by the coronavirus pandemic (COVID-19). In the second quarter of 2020, the Bank elected to apply the TDR relief provided by the CARES Act to its conventional mortgage loan portfolio. As such, all COVID-19 modifications meeting the provisions of the CARES Act were excluded from TDR classification and accounting. COVID-19 modifications not meeting the provisions of the CARES Act continue to be assessed for TDR classification. See “Note 6 — Mortgage Loans Held for Portfolio” for additional details. |
Impairment of Financing Receivables | Individually Evaluated Loans. The Bank individually evaluates all collateral-dependent loans for expected credit losses. 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, bankruptcy loans 60 days or more past due, and TDRs on non-accrual status. The Bank measures these individually evaluated loans for expected credit loss based on the estimated fair value of the underlying property, less estimated selling costs and expected proceeds from primary mortgage insurance (PMI). All collateral-dependent loans are initially placed on non-accrual status; however, they may be subsequently restored to accrual status if they meet the criteria noted in the non-accrual section above. Charge-Off Policy . A charge-off is recorded if it is estimated that the amortized cost in a loan will not be recovered. The Bank evaluates whether to record a charge-off on a conventional mortgage loan upon the occurrence of a confirming event. Confirming events include but are 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 estimated selling costs and expected proceeds from PMI. |
Derivatives | Derivatives All derivatives are recognized on the Statements of Condition at their fair values and reported as either derivative assets or derivative liabilities, net of cash collateral and accrued interest received from or pledged to clearing agents and/or counterparties. The fair values of derivatives are netted by clearing agent and/or counterparty when the netting requirements have been met. If these netted amounts result in a receivable to the Bank, they are classified as a derivative asset and, if classified as a payable to the clearing agent or counterparty, they are classified as a derivative liability. Cash flows associated with a derivative are reflected as cash flows from operating activities on the Statements of Cash Flows unless the derivative meets the criteria to be a financing derivative. 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., a clearing agent) with a Derivative Clearing Organization (cleared derivatives). The Bank utilizes one Derivative Clearing Organization (Clearinghouse), CME Clearing, for all cleared derivative transactions. CME Clearing notifies the clearing agent of the required initial margin and daily variation margin payments, and the clearing agent in turn notifies the Bank. The Clearinghouse determines initial margin requirements which are considered cash collateral. Variation margin requirements with CME Clearing are based on changes in the fair value of cleared derivatives and are legally characterized as daily settlement payments, which are a component of the derivative fair value, rather than cash collateral. Derivative Designations . Derivative instruments are designated by the Bank as: • a fair value hedge of an associated financial instrument or firm commitment (fair value hedge); or • an economic hedge to manage certain defined risks on the Bank’s Statements of Condition (economic hedge). These hedges are primarily used to: (i) manage mismatches between the coupon features of the Bank’s assets and liabilities, (ii) offset prepayment risk in certain assets, (iii) mitigate the income statement volatility that occurs when financial instruments are recorded at fair value and hedge accounting is not permitted by accounting guidance, or (iv) reduce exposure to interest reset risk. Accounting for Fair Value Hedges . If hedging relationships meet certain criteria, including, but not limited to, formal documentation of the fair value hedging relationship and an expectation to be highly effective, they qualify for fair value hedge accounting. At the inception of each fair value hedge transaction, the Bank formally documents the hedge relationship and its risk management objective and strategy for undertaking the hedge, including identification of the hedging instrument, the hedged item, the nature of the risk being hedged, and how the hedging instrument’s effectiveness in offsetting the exposure to changes in the hedged item’s fair value attributable to the hedged risk will be assessed. This process includes linking all derivatives that are designated as fair value hedges to assets and liabilities on the Statements of Condition and firm commitments. Changes in the fair value of a derivative that is designated and qualifies as a fair value hedge, along with changes in the fair value of the hedged asset or liability (or firm commitment) that are attributable to the hedged risk, are recorded in net interest income in the same line as the earnings effect of the hedged item. Two approaches to fair value hedge accounting include: • Long-haul hedge accounting . The application of long-haul hedge accounting requires the Bank to formally assess (both at the hedge’s inception and at least quarterly) whether the derivatives that are used in hedging transactions have been highly effective in offsetting changes in the fair value of hedged items due to benchmark interest rate changes and whether those derivatives are expected to remain highly effective in future periods. The Bank uses regression analyses to assess the effectiveness of its long-haul hedges. • Short-cut hedge accounting . Transactions that meet certain criteria qualify for short-cut hedge accounting in which an assumption can be made that the change in fair value of a hedged item due to changes in the hedged risk, exactly offsets the change in fair value of the related derivative. Under the short-cut method, the entire change in fair value of the interest rate swap is considered to be highly effective at achieving offsetting changes in fair value of the hedged asset or liability. If documented at the time of hedge designation, a derivative relationship no longer qualifying for short-cut hedge accounting can fall back to the long-haul accounting method. Derivatives are typically executed at the same time as the hedged item, and the Bank designates the hedged item in a fair value hedging relationship at the trade date. In many hedging relationships, the Bank may designate the fair value hedging relationship upon its commitment to disburse an advance or trade a consolidated obligation in which settlement occurs within the shortest period of time possible for the type of instrument based on market settlement conventions. The Bank then records the changes in fair value of the derivative and the hedged item beginning on the trade date. Accounting for Economic Hedges . An economic hedge is defined as a derivative hedging specific or non-specific underlying assets, liabilities, or firm commitments that does not qualify or was not designated for fair value hedge accounting, but is an acceptable hedging strategy under the Bank’s risk management program. Changes in the fair value of derivatives that are designated as economic hedges are recorded in other income (loss) as “Net gains (losses) on derivatives” with no offsetting fair value adjustments for the underlying assets, liabilities, or firm commitments, unless changes in the fair value of the those items are normally marked to fair value through earnings (e.g., trading securities and fair value option instruments). Accrued Interest Receivables and Payables . The net settlements of interest receivables and payables related to derivatives designated as fair value hedges are recognized as adjustments to the interest income or interest expense of the designated hedged item. The net settlements of interest receivables and payables related to derivatives designated as economic hedges are recognized in other income (loss) as “Net gains (losses) on derivatives.” Discontinuance of Hedge Accounting. The Bank discontinues fair value hedge accounting prospectively when either (i) it determines that the derivative is no longer highly effective in offsetting changes in the fair value of a hedged item due to changes in the benchmark interest rate, (ii) the derivative and/or the hedged item expires or is sold, terminated, or exercised, or (iii) management determines that designating the derivative as a hedging instrument is no longer appropriate. When fair value hedge accounting is discontinued, the Bank either terminates the derivative or continues to carry the derivative on the Statements of Condition at its fair value. For any remaining hedged item, the Bank ceases to adjust the hedged item for changes in fair value and amortizes the cumulative basis adjustment on the hedged item into earnings over the remaining contractual life of the hedged item using the level-yield method. |
Derivative Offsetting | Financial Instruments Meeting Netting Requirements The Bank has certain financial instruments, including derivative instruments and securities purchased under agreements to resell, that may be presented on a net basis when there is a legal right of offset and all other requirements for netting are met (collectively referred to as the netting requirements). The Bank has elected to offset its derivative instruments, related cash collateral, and associated accrued interest when it has met the netting requirements. |
Embedded Derivatives | Embedded Derivatives. The Bank may issue debt, make advances, or purchase financial instruments in which a derivative instrument is “embedded.” Upon execution of these transactions, the Bank assesses whether the economic characteristics of the embedded derivative are clearly and closely related to the economic characteristics of the remaining component of the debt, advance, or purchased financial instrument (the host contract) and whether a separate, non-embedded instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. If the Bank determines that the embedded derivative has economic characteristics that are not clearly and closely related to the economic characteristics of the host contract and a separate, stand-alone instrument with the same terms would qualify as a derivative instrument, the embedded derivative is separated from the host contract, carried at fair value, and designated as an economic derivative instrument. However, if the Bank elects to carry the entire contract (the host contract and the embedded derivative) at fair value on the Statements of Condition, changes in fair value of the entire contract will be reported in current period earnings. |
Premises, Software, and Equipment | Premises, Software, and EquipmentPremises, software, and equipment are included in other assets on the Statements of Condition. The Bank records premises, software, and equipment at cost less accumulated depreciation and amortization and computes depreciation and amortization using the straight-line method over the estimated useful lives of assets, which range from approximately three years to 40 years. Leasehold improvements, if applicable, are amortized using the straight-line method over the shorter of the estimated useful life of the improvement or the remaining term of the lease. The Bank may capitalize improvements and major renewals but expenses ordinary maintenance and repairs when incurred. The Bank may capitalize and amortize the cost of computer software developed or obtained for internal use over future periods. The Bank includes gains and losses on the disposal of premises, software, and equipment in other income (loss) on the Statements of Income. |
Consolidated Obligations | Consolidated Obligations The Bank reports consolidated obligations at amortized cost, which is net of premiums, discounts, concessions, and fair value hedging adjustments unless the Bank has elected the fair value option, in which case the consolidated obligations are carried at fair value. The Bank records interest on consolidated obligations bonds to interest expense as incurred. The Bank amortizes/accretes premiums, discounts, concessions, and fair value hedging adjustments on consolidated obligations to expense using the level-yield method over the contractual life of the consolidated obligations. 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” on the Statements of Condition and the amortization of those concessions is included in consolidated obligation interest expense. |
Mandatorily Redeemable Capital Stock | Mandatorily Redeemable Capital Stock The Bank reclassifies capital stock subject to redemption from equity to a liability (mandatorily redeemable capital stock or MRCS) at the time shares meet the definition of a mandatorily redeemable financial instrument. This occurs after a member provides written notice of redemption, gives 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. Shares meeting this definition are reclassified to a liability at fair value. Dividends on MRCS are classified as interest expense on the Statements of Income. The repurchase or redemption of MRCS is transacted at par value and is reflected as a cash outflow in the financing activities section of the Statements of Cash Flows. If a member cancels its written notice of redemption or notice of withdrawal, the Bank will reclassify MRCS from a liability to equity. After the reclassification, dividends on the capital stock will no longer be classified as interest expense. |
Restricted Retained Earnings | Restricted Retained Earnings The Bank entered into a Joint Capital Enhancement Agreement (JCE Agreement) with all of the other FHLBanks in 2011. The JCE Agreement, as amended, is intended to enhance the capital position of the FHLBanks over time. Under the JCE Agreement, each FHLBank is required to allocate 20 percent of its quarterly net income to a restricted retained earnings account until the balance of that account, calculated as of the last day of each calendar quarter, equals at least one percent of its average balance of outstanding consolidated obligations for the calendar quarter. The restricted retained earnings are not available to pay dividends and are presented separately on the Statements of Condition. |
Litigation Settlement Gains, Net | Gains on Litigation Settlement, Net 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 on the Statements of Income. |
Finance Agency Expenses | Finance Agency Expenses The FHLBanks are assessed for a portion of the costs of operating the Finance Agency. Each FHLBank is required to pay their pro-rata share of the annual assessment based on the ratio between each FHLBank’s minimum required regulatory capital and the minimum required regulatory capital of all FHLBanks. |
Office of Finance Expenses | Office of Finance Expenses The Bank is assessed for a portion of the costs of operating the Office of Finance. The Office of Finance allocates its operating and capital expenditures to the FHLBanks as follows: (i) two-thirds based on each FHLBank’s share of total consolidated obligations outstanding and (ii) one-third based upon an equal pro-rata allocation. |
Assessments | Affordable Housing Program AssessmentsThe FHLBank Act requires each FHLBank to establish and fund an Affordable Housing Program (AHP), which provides subsidies in the form of direct grants and below-market interest rate advances to members who use the funds to assist in the purchase, construction, or rehabilitation of housing for very low-, low-, or moderate-income households. Annually, each FHLBank must set aside for the AHP the greater of 10 percent of its annual income subject to assessment, or its prorated sum required to ensure the aggregate contribution by the FHLBanks is no less than $100 million per year. For purposes of the AHP assessment, income subject to assessment is defined as net income before assessments, plus interest expense related to MRCS. The Bank accrues this expense monthly based on its income subject to assessment. In addition to the required AHP assessment, the Bank’s Board of Directors may elect to make voluntary contributions to the AHP. The Bank reduces its AHP liability as program funds are distributed. |
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. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., exit price). The fair value hierarchy requires an entity to maximize the use of significant observable inputs and minimize the use of significant 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. An active market for an asset or liability is a market in which the transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. • 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 and implied volatilities), and (iv) market-corroborated inputs. • Level 3 Inputs. Unobservable inputs for the asset or liability. Valuations are derived from techniques that use significant assumptions not observable in the market, which may include pricing models, discounted cash flow models, or similar techniques. |
Fair Value Transfers | 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. |
Allowance for Credit Losses | The Bank invests in interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold. Interest-bearing deposits include deposits held with banks or counterparties that do not meet the definition of a security. The Bank treats securities purchased under agreements to resell as short-term collateralized loans. Federal funds sold consist of short-term, unsecured loans generally transacted by counterparties that are considered investment quality by the Bank. All of these investments provide short-term liquidity and are carried at amortized cost. Accrued interest receivable is recorded separately on the Statements of Condition. These investments are evaluated quarterly for expected credit losses. If applicable, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The Bank uses the collateral maintenance provision practical expedient for securities purchased under agreements to resell. Consequently, a credit loss would be recognized if there is a collateral shortfall which the Bank does not believe the counterparty will replenish in accordance with its contractual terms. The credit loss would be limited to the difference between the fair value of the collateral and the investment’s amortized cost. Prior to January 1, 2020, securities purchased under agreements to resell were evaluated for impairment if there was a collateral shortfall which the Bank did not believe the counterparty would replenish in accordance with the contractual terms. See “Note 4 — Investments” for details on the allowance methodologies relating to these investments. The Bank evaluates its individual AFS securities for impairment quarterly by comparing the security’s fair value to its amortized cost. Accrued interest receivable is recorded separately on the Statements of Condition. Impairment may exist when the fair value of the investment is less than its amortized cost (i.e., in an unrealized loss position). In assessing whether a credit loss exists on an impaired security, the Bank considers whether there would be a shortfall in receiving all cash flows contractually due. When a shortfall is considered possible, the Bank compares the present value of cash flows to be collected from the security with the amortized cost basis of the security. If the present value of cash flows is less than amortized cost, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The allowance is limited by the amount of the unrealized loss. The allowance for credit losses excludes uncollectible accrued interest receivable, which is measured separately, if applicable. If management intends to sell an impaired security classified as AFS, or more likely than not will be required to sell the security before expected recovery of its amortized cost basis, any allowance for credit losses is written off and the amortized cost basis is written down to the security’s fair value at the reporting date with any incremental impairment reported in other income (loss). If management does not intend to sell an impaired security classified as AFS and it is not more likely than not that management will be required to sell the debt security, then the credit portion of the difference is recognized as an allowance for credit losses and any remaining difference between the security’s fair value and amortized cost is recorded to “Net unrealized gains (losses) on available-for-sale securities” within AOCI. Prior to January 1, 2020, the Bank evaluated its individual AFS securities in an unrealized loss position for other-than-temporary impairment (OTTI) on a quarterly basis. The Bank performs a quarterly assessment of its mortgage loans held for portfolio to estimate expected credit losses. If deemed necessary, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The Bank measures expected credit losses on mortgage loans on a collective basis, pooling loans with similar risk characteristics. If a mortgage loan no longer shares risk characteristics with other loans, it is removed from the pool and evaluated for expected credit losses on an individual basis. When developing the allowance for credit losses, the Bank measures the estimated loss over the remaining life of a mortgage loan, which also considers how the Bank’s credit enhancements mitigate credit losses. The Bank includes estimates of expected recoveries within the allowance for credit losses. The allowance excludes uncollectible accrued interest receivable, as the Bank writes off accrued interest receivable by reversing interest income if a mortgage loan is placed on non-accrual status. The Bank does not purchase mortgage loans with credit deterioration at the time of purchase. The Bank evaluates its off-balance sheet credit exposures on a quarterly basis for expected credit losses. If deemed necessary, an allowance for expected credit losses on these off-balance sheet exposures is recorded in other liabilities, with a corresponding adjustment to the provision (reversal) for credit losses. Prior to January 1, 2020, the Bank recorded an allowance for credit losses on its off-balance sheet credit exposures if it was probable an impairment had occurred as of the balance sheet date and the amount of loss could be reasonably estimated. See “Note 14 — Commitments and Contingencies” for additional information. |
Subsequent Events (Policies)
Subsequent Events (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events, Policy | Subsequent events have been evaluated from January 1, 2022, through the time of the Form 10-K filing with the Securities and Exchange Commission. No material subsequent events requiring disclosure were identified |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investment Debt Securities Table [Line Items] | |
Major Security Types | AFS securities by major security type we re as follows (dollars in millions): December 31, 2021 Amortized 1 Gross Gross Fair Non-mortgage-backed securities Other U.S. obligations 2 $ 1,152 $ 5 $ (1) $ 1,156 GSE and Tennessee Valley Authority obligations 953 30 — 983 State or local housing agency obligations 492 — (4) 488 Other 3 277 11 — 288 Total non-mortgage-backed securities 2,874 46 (5) 2,915 Mortgage-backed securities U.S. obligations single-family 2 2,890 19 — 2,909 GSE single-family 273 4 — 277 GSE multifamily 7,264 42 (18) 7,288 Total mortgage-backed securities 10,427 65 (18) 10,474 Total $ 13,301 $ 111 $ (23) $ 13,389 December 31, 2020 Amortized 1 Gross Gross Fair Non-mortgage-backed securities Other U.S. obligations 2 $ 1,670 $ 4 $ (2) $ 1,672 GSE and Tennessee Valley Authority obligations 1,000 22 — 1,022 State or local housing agency obligations 712 — (19) 693 Other 3 290 12 — 302 Total non-mortgage-backed securities 3,672 38 (21) 3,689 Mortgage-backed securities U.S. obligations single-family 2 3,527 18 (1) 3,544 GSE single-family 442 4 — 446 GSE multifamily 8,217 47 (33) 8,231 Total mortgage-backed securities 12,186 69 (34) 12,221 Total $ 15,858 $ 107 $ (55) $ 15,910 1 Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and/or fair value hedge accounting adjustments, and excludes accrued interest receivable of $28 million and $31 million at December 31, 2021 and 2020 . 2 Represents investment securities backed by the full faith and credit of the U.S. Government. 3 Consists primarily of taxable municipal 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. December 31, 2021 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Non-mortgage-backed securities Other U.S. obligations 1 $ 80 $ — $ 115 $ (1) $ 195 $ (1) GSE and Tennessee Valley Authority obligations 355 — — — 355 — State or local housing agency obligations — — 451 (4) 451 (4) Total non-mortgage-backed securities 435 — 566 (5) 1,001 (5) Mortgage-backed securities U.S. obligations single-family 1 89 — 87 — 176 — GSE single-family 2 — — — 2 — GSE multifamily 1,831 (3) 2,917 (15) 4,748 (18) Total mortgage-backed securities 1,922 (3) 3,004 (15) 4,926 (18) Total $ 2,357 $ (3) $ 3,570 $ (20) $ 5,927 $ (23) December 31, 2020 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Non-mortgage-backed securities Other U.S. obligations 1 $ 348 $ — $ 698 $ (2) $ 1,046 $ (2) State or local housing agency obligations 336 (15) 288 (4) 624 (19) Total non-mortgage-backed securities 684 (15) 986 (6) 1,670 (21) Mortgage-backed securities U.S. obligations single-family 1 — — 593 (1) 593 (1) GSE single-family — — 14 — 14 — GSE multifamily 662 (8) 3,561 (25) 4,223 (33) Total mortgage-backed securities 662 (8) 4,168 (26) 4,830 (34) Total $ 1,346 $ (23) $ 5,154 $ (32) $ 6,500 $ (55) 1 Represents investment securities backed by the full faith and credit of the U.S. Government. |
Debt Securities, Trading, and Equity Securities, FV-NI [Table Text Block] | Trading securities by major security type were as follows (dollars in millions): December 31, 2021 2020 Non-mortgage-backed securities U.S. Treasury obligations 1 $ 496 $ 4,069 Other U.S. obligations 1 102 114 GSE and Tennessee Valley Authority obligations 60 64 Other 2 201 246 Total non-mortgage-backed securities 859 4,493 Mortgage-backed securities GSE multifamily 310 382 Total fair value $ 1,169 $ 4,875 1 Represents investment securities backed by the full faith and credit of the U.S. Government. 2 Consists of taxable municipal bonds. |
Major Security Types | HTM securities by major security type wer e as follows (dollars in millions): December 31, 2021 Amortized 1 Gross Gross Fair Non-mortgage-backed securities GSE and Tennessee Valley Authority obligations $ 374 $ 71 $ — $ 445 State or local housing agency obligations 187 1 (1) 187 Total non-mortgage-backed securities 561 72 (1) 632 Mortgage-backed securities U.S. obligations single-family 2 2 — — 2 GSE single-family 760 6 — 766 Private-label 5 — — 5 Total mortgage-backed securities 767 6 — 773 Total $ 1,328 $ 78 $ (1) $ 1,405 December 31, 2020 Amortized 1 Gross Gross Fair Non-mortgage-backed securities GSE and Tennessee Valley Authority obligations $ 379 $ 97 $ — $ 476 State or local housing agency obligations 203 2 (1) 204 Total non-mortgage-backed securities 582 99 (1) 680 Mortgage-backed securities U.S. obligations single-family 2 3 — — 3 GSE single-family 1,225 9 (2) 1,232 Private-label 6 — — 6 Total mortgage-backed securities 1,234 9 (2) 1,241 Total $ 1,816 $ 108 $ (3) $ 1,921 1 Amortized cost includes adjustments made to the cost basis of an investment for accretion or amortization and excludes accrued interest receivable of $5 million at both December 31, 2021 and 2020. 2 Represents investment securities backed by the full faith and credit of the U.S. Government. |
Gain (Loss) on Securities | The following table summarizes the components of “Net gains (losses) on trading securities” as presented on the Statements of Income (dollars in millions): For the Years Ended December 31, 2021 2020 2019 Net unrealized gains (losses) on trading securities held at period-end $ (28) $ 17 $ 28 Net gains (losses) on trading securities sold/matured during the period (10) — — Net gains (losses) on trading securities $ (38) $ 17 $ 28 |
Available-for-sale Securities [Member] | |
Investment Debt Securities Table [Line Items] | |
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): December 31, 2021 December 31, 2020 Year of Contractual Maturity Amortized Fair Amortized Fair Non-mortgage-backed securities Due in one year or less $ 422 $ 422 $ 4 $ 4 Due after one year through five years 1,538 1,548 2,430 2,438 Due after five years through ten years 348 356 494 498 Due after ten years 566 589 744 749 Total non-mortgage-backed securities 2,874 2,915 3,672 3,689 Mortgage-backed securities 10,427 10,474 12,186 12,221 Total $ 13,301 $ 13,389 $ 15,858 $ 15,910 |
Held-to-Maturity Securities [Member] | |
Investment Debt Securities Table [Line Items] | |
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): December 31, 2021 December 31, 2020 Year of Contractual Maturity Amortized Fair Amortized Fair Non-mortgage-backed securities Due after one year through five years $ 257 $ 287 $ 252 $ 297 Due after five years through ten years 196 204 198 203 Due after ten years 108 141 132 180 Total non-mortgage-backed securities 561 632 582 680 Mortgage-backed securities 767 773 1,234 1,241 Total $ 1,328 $ 1,405 $ 1,816 $ 1,921 |
Advances (Tables)
Advances (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Advances [Abstract] | |
Advances | The following table summarizes the Bank’s advances outstanding by redemption term (dollars in millions): December 31, 2021 December 31, 2020 Redemption Term Amount 1 Weighted Amount 1 Weighted Overdrawn demand deposit accounts $ — — % $ 3 1.29 % Due in one year or less 12,441 1.18 12,499 1.16 Due after one year through two years 7,415 1.72 8,265 1.69 Due after two years through three years 9,956 1.04 10,550 1.42 Due after three years through four years 4,939 0.94 7,011 1.38 Due after four years through five years 6,275 0.95 4,106 1.12 Thereafter 3,113 2.07 3,654 2.10 Total par value 44,139 1.24 % 46,088 1.42 % Premiums 14 18 Discounts (2) (3) Fair value hedging adjustments (40) 427 Total $ 44,111 $ 46,530 1 Excludes accrued interest receivable of $13 million at both December 31, 2021 and 2020. The following table summarizes advances by year of redemption term or next call date for callable advances, and by year of redemption term or next put date for putable advances (dollars in millions): Redemption Term Redemption Term December 31, December 31, December 31, December 31, Overdrawn demand deposit accounts $ — $ 3 $ — $ 3 Due in one year or less 24,690 23,622 13,270 13,486 Due after one year through two years 6,253 6,276 7,429 8,319 Due after two years through three years 4,429 6,436 9,173 10,464 Due after three years through four years 2,357 4,053 4,889 6,116 Due after four years through five years 3,273 2,169 6,276 4,057 Thereafter 3,137 3,529 3,102 3,643 Total par value $ 44,139 $ 46,088 $ 44,139 $ 46,088 |
Mortgage Loans Held for Portf_2
Mortgage Loans Held for Portfolio (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Mortgage Loans Held for Portfolio | The following table presents information on the Bank’s mortgage loans held for portfolio (dollars in millions): December 31, 2021 2020 Fixed rate, long-term single-family mortgage loans $ 6,307 $ 6,945 Fixed rate, medium-term 1 single-family mortgage loans 1,172 1,182 Total unpaid principal balance 7,479 8,127 Premiums 96 107 Discounts (2) (3) Basis adjustments from mortgage loan purchase commitments 6 12 Total mortgage loans held for portfolio 2 $ 7,579 $ 8,243 Allowance for credit losses (1) (1) Total mortgage loans held for portfolio, net $ 7,578 $ 8,242 1 Medium-term is defined as a term of 15 years or less. 2 Excludes accrued interest receivable of $34 million and $40 million at December 31, 2021 and 2020 . The following table presents the Bank’s mortgage loans held for portfolio by collateral or guarantee type (dollars in millions): December 31, 2021 2020 Conventional mortgage loans $ 7,063 $ 7,646 Government-insured mortgage loans 416 481 Total unpaid principal balance $ 7,479 $ 8,127 |
Financing Receivable Credit Quality Indicators | Payment status is the key credit quality indicator for conventional mortgage loans and allows the Bank to monitor borrower performance. Past due loans are those where the borrower has failed to make contractual principal and/or interest payments for a period of 30 days or more. Other delinquency statistics include non-accrual loans and loans in process of foreclosure. The following table presents the payment status for conventional mortgage loans (dollars in millions): December 31, 2021 Origination Year Prior to 2017 2017 to 2021 Total Past due 30 - 59 days $ 19 $ 17 $ 36 Past due 60 - 89 days 5 3 8 Past due 90 - 179 days 7 2 9 Past due 180 days or more 16 3 19 Total past due mortgage loans 47 25 72 Total current mortgage loans 1,826 5,257 7,083 Total amortized cost of mortgage loans 1 $ 1,873 $ 5,282 $ 7,155 1 Amortized cost represents the unpaid principal balance adjusted for unamortized premiums, discounts, price adjustment fees, basis adjustments, and direct write-downs. Amortized cost excludes accrued interest receivable. The following table presents the payment status for conventional mortgage loans (dollars in millions): December 31, 2020 Origination Year Prior to 2016 2016 to 2020 Total Past due 30 - 59 days $ 19 $ 18 $ 37 Past due 60 - 89 days 9 9 18 Past due 90 - 179 days 21 21 42 Past due 180 days or more 25 17 42 Total past due mortgage loans 74 65 139 Total current mortgage loans 1,952 5,661 7,613 Total amortized cost of mortgage loans 1 $ 2,026 $ 5,726 $ 7,752 1 Amortized cost represents the unpaid principal balance adjusted for unamortized premiums, discounts, price adjustment fees, basis adjustments, and direct write-downs. Amortized cost excludes accrued interest receivable. |
Financing receivable, COVID-19 Forbearance | The following table presents the unpaid principal balance of conventional loans in a forbearance plan as a result of COVID-19 (dollars in millions): December 31, 2021 2020 Past due 30 - 59 days $ — $ 3 Past due 60 - 89 days 1 6 Past due 90 days or more and in non-accrual status 5 42 Current mortgage loans 1 2 Total unpaid principal balance 1 $ 7 $ 53 |
Past Due Financing Receivables | The following tables present other delinquency statistics for mortgage loans (dollars in millions): December 31, 2021 Amortized Cost Conventional Government-Insured Total In process of foreclosure 1 $ 4 $ 1 $ 5 Serious delinquency rate 2 — % 3 % 1 % Past due 90 days or more and still accruing interest 3 $ — $ 11 $ 11 Non-accrual mortgage loans 4 $ 86 $ — $ 86 December 31, 2020 Amortized Cost Conventional Government- Insured Total In process of foreclosure 1 $ 8 $ 1 $ 9 Serious delinquency rate 2 1 % 3 % 1 % Past due 90 days or more and still accruing interest 3 $ — $ 13 $ 13 Non-accrual mortgage loans 4 $ 93 $ — $ 93 1 Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. 2 Represents mortgage loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of total mortgage loans. Serious delinquency rate on conventional loans was less than one percent at December 31, 2021. 3 Represents government-insured mortgage loans that are 90 days or more past due. 4 Represents conventional mortgage loans that are 90 days or more past due or for which the collection of interest or principal is doubtful. At December 31, 2021 and 2020, $74 million and $52 million of conventional mortgage loans on non-accrual status were evaluated individually and do not have a related allowance for credit losses because these loans were either previously charged off to the expected recoverable value and/or the fair value of the underlying collateral is greater than the amortized cost of the loans. |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments in Statement of Financial Position | The following table summarizes the Bank’s notional amount and fair value of derivative instruments and total derivative assets and liabilities. Total derivative assets and liabilities include 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): December 31, 2021 December 31, 2020 Notional Derivative Derivative Notional Derivative Derivative Derivatives designated as hedging instruments (fair value hedges) Interest rate swaps $ 57,502 $ 68 $ 136 $ 33,552 $ 46 $ 262 Derivatives not designated as hedging instruments (economic hedges) Interest rate swaps 23,664 7 43 1,817 12 73 Forward settlement agreements (TBAs) 115 — — 169 — 1 Mortgage loan purchase commitments 115 — — 177 1 — Total derivatives not designated as hedging instruments 23,894 7 43 2,163 13 74 Total derivatives before netting and collateral adjustments $ 81,396 75 179 $ 35,715 59 336 Netting adjustments and cash collateral 1 146 (176) 168 (332) Total derivative assets and derivative liabilities $ 221 $ 3 $ 227 $ 4 1 Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral, including accrued interest, held or placed with the same clearing agent and/or counterparty. At December 31, 2021 and 2020, cash collateral, including accrued interest, posted by the Bank was $342 million and $507 million. At December 31, 2021 and 2020, the Bank held cash collateral, including accrued interest, from clearing agents and/or counterparties of $20 million and $7 million. |
Derivative Instrument Gain (Loss) [Table] | The following tables summarize the net gains (losses) on qualifying and discontinued fair value hedging relationships recorded in net interest income, including the net interest settlements on derivatives, as well as total income (expense) by hedged product recorded on the Statements of Income (dollars in millions): For the Year Ended December 31, 2021 Interest Income (Expense) Advances AFS Securities Consolidated Obligation Bonds Total interest income (expense) recorded on the Statements of Income 1 $ 472 $ 101 $ (452) Gains (losses) on fair value hedging relationships Interest rate contracts Derivatives 2 246 127 (23) Hedged items 3 (467) (267) 146 Net gains (losses) on fair value hedging relationships $ (221) $ (140) $ 123 For the Year Ended December 31, 2020 Interest Income (Expense) Advances AFS Securities Consolidated Obligation Bonds Total interest income (expense) recorded on the Statements of Income 1 $ 950 $ 206 $ (915) Gains (losses) on fair value hedging relationships Interest rate contracts Derivatives 2 (455) (283) 261 Hedged items 3 271 173 (150) Net gains (losses) on fair value hedging relationships $ (184) $ (110) $ 111 For the Year Ended December 31, 2019 Interest Income (Expense) Advances AFS Securities Consolidated Obligation Bonds Total interest income (expense) recorded on the Statements of Income 1 $ 2,466 $ 506 $ (2,289) Gains (losses) on fair value hedging relationships Interest rate contracts Derivatives 2 (223) (233) 188 Hedged items 3 276 224 (357) Net gains (losses) on fair value hedging relationships $ 53 $ (9) $ (169) 1 Amounts shown to give context to the disclosure and include total interest income (expense) of the products indicated, including coupon, prepayment fees, amortization, and derivative net interest settlements. Interest income (expense) amounts also include gains and losses on derivatives and hedged items in fair value hedging relationships. 2 Includes changes in fair value and net interest settlements on derivatives. 3 Includes changes in fair value and amortization/accretion of basis adjustments on closed hedge relationships. |
Derivative Instruments By Hedge Type in Statement of Financial Performance | The following tables summarize cumulative fair value hedging adjustments and the related amortized cost of the hedged items (dollars in millions): December 31, 2021 Advances AFS Securities Consolidated Obligation Bonds Amortized cost of hedged asset/liability 1 $ 17,598 $ 6,547 $ 34,271 Fair value hedging adjustments Changes in fair value for active hedging relationships included in amortized cost $ (54) $ 73 $ 11 Basis adjustments for discontinued hedging relationships included in amortized cost 14 — (5) Total amount of fair value hedging adjustments $ (40) $ 73 $ 6 December 31, 2020 Advances AFS Securities Consolidated Obligation Bonds Amortized cost of hedged asset/liability 1 $ 17,875 $ 7,137 $ 12,163 Fair value hedging adjustments Changes in fair value for active hedging relationships included in amortized cost $ 406 $ 340 $ 161 Basis adjustments for discontinued hedging relationships included in amortized cost 21 — (10) Total amount of fair value hedging adjustments $ 427 $ 340 $ 151 1 Represents the portion of amortized cost designated as a hedged item in an active or discontinued fair value hedging relationship. |
Offsetting Assets | The following tables present the fair value of derivative instruments meeting or not meeting the netting requirements and the related collateral received from or pledged to counterparties (dollars in millions): December 31, 2021 Derivative Instruments Meeting Netting Requirements Gross Amount Recognized 1 Gross Amounts of Netting Adjustments and Cash Collateral Derivative Instruments Not Meeting Netting Requirements 2 Total Derivative Assets and Total Derivative Liabilities Derivative Assets Uncleared derivatives $ 74 $ (73) $ — $ 1 Cleared derivatives 1 219 — 220 Total $ 75 $ 146 $ — $ 221 Derivative Liabilities Uncleared derivatives $ 172 $ (170) $ — $ 2 Cleared derivatives 7 (6) — 1 Total $ 179 $ (176) $ — $ 3 December 31, 2020 Derivative Instruments Meeting Netting Requirements Gross Amount Recognized 1 Gross Amounts of Netting Adjustments and Cash Collateral Derivative Instruments Not Meeting Netting Requirements 2 Total Derivative Assets and Total Derivative Liabilities Derivative Assets Uncleared derivatives $ 58 $ (58) $ 1 $ 1 Cleared derivatives — 226 — 226 Total $ 58 $ 168 $ 1 $ 227 Derivative Liabilities Uncleared derivatives $ 328 $ (324) $ — $ 4 Cleared derivatives 8 (8) — — Total $ 336 $ (332) $ — $ 4 1 Represents derivative assets and derivative liabilities prior to netting adjustments and cash collateral, including accrued interest. 2 Represents mortgage loan purchase commitments not subject to enforceable netting requirements. |
Offsetting Liabilities [Table Text Block] | The following tables present the fair value of derivative instruments meeting or not meeting the netting requirements and the related collateral received from or pledged to counterparties (dollars in millions): December 31, 2021 Derivative Instruments Meeting Netting Requirements Gross Amount Recognized 1 Gross Amounts of Netting Adjustments and Cash Collateral Derivative Instruments Not Meeting Netting Requirements 2 Total Derivative Assets and Total Derivative Liabilities Derivative Assets Uncleared derivatives $ 74 $ (73) $ — $ 1 Cleared derivatives 1 219 — 220 Total $ 75 $ 146 $ — $ 221 Derivative Liabilities Uncleared derivatives $ 172 $ (170) $ — $ 2 Cleared derivatives 7 (6) — 1 Total $ 179 $ (176) $ — $ 3 December 31, 2020 Derivative Instruments Meeting Netting Requirements Gross Amount Recognized 1 Gross Amounts of Netting Adjustments and Cash Collateral Derivative Instruments Not Meeting Netting Requirements 2 Total Derivative Assets and Total Derivative Liabilities Derivative Assets Uncleared derivatives $ 58 $ (58) $ 1 $ 1 Cleared derivatives — 226 — 226 Total $ 58 $ 168 $ 1 $ 227 Derivative Liabilities Uncleared derivatives $ 328 $ (324) $ — $ 4 Cleared derivatives 8 (8) — — Total $ 336 $ (332) $ — $ 4 1 Represents derivative assets and derivative liabilities prior to netting adjustments and cash collateral, including accrued interest. 2 Represents mortgage loan purchase commitments not subject to enforceable netting requirements. |
Derivatives Not Designated as Hedging Instruments | The following table summarizes the components of “Net gains (losses) on derivatives” as presented on the Statements of Income (dollars in millions): For the Years Ended December 31, 2021 2020 2019 Derivatives not designated as hedging instruments (economic hedges) Interest rate swaps $ 31 $ (32) $ (34) Forward settlement agreements (TBAs) 3 (13) (5) Mortgage loan purchase commitments (3) 11 5 Net interest settlements (17) (14) (1) Net gains (losses) on derivatives $ 14 $ (48) $ (35) |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deposits [Abstract] | |
Deposit Liabilities | The following table details the Bank’s interest-bearing and non-interest-bearing deposits (dollars in millions): December 31, 2021 2020 Interest-bearing Demand and overnight $ 1,659 $ 1,586 Term 59 49 Non-interest-bearing Demand 129 273 Total $ 1,847 $ 1,908 |
Consolidated Obligations (Table
Consolidated Obligations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Discount Notes | The following table summarizes the Bank’s discount notes (dollars in millions): December 31, 2021 December 31, 2020 Amount Weighted Amount Weighted Par value $ 22,355 0.08 % $ 27,350 0.10 % Discounts and concessions 1 (6) (5) Fair value option valuation adjustments (1) — Total $ 22,348 $ 27,345 1 Concessions represent fees paid to dealers in connection with the issuance of certain consolidated obligation discount notes. |
Bonds by Contractual Maturity | The following table summarizes the Bank’s bonds outstanding by contractual maturity (dollars in millions): December 31, 2021 December 31, 2020 Year of Contractual Maturity Amount Weighted Amount Weighted Due in one year or less $ 38,778 0.30 % $ 29,224 0.88 % Due after one year through two years 3,928 2.06 9,398 1.10 Due after two years through three years 5,073 2.41 3,296 2.42 Due after three years through four years 1,010 2.11 3,548 3.00 Due after four years through five years 1,185 1.97 1,058 2.19 Thereafter 5,105 2.27 5,406 2.50 Total par value 55,079 0.87 % 51,930 1.36 % Premiums 138 199 Discounts and concessions 1 (17) (26) Fair value hedging adjustments 5 151 Total $ 55,205 $ 52,254 1 Concessions represent fees paid to dealers in connection with the issuance of certain consolidated obligation bonds. The following table summarizes the Bank’s bonds outstanding by year of contractual maturity or next call date (dollars in millions): December 31, Year of Contractual Maturity or Next Call Date 2021 2020 Due in one year or less $ 44,071 $ 31,749 Due after one year through two years 3,908 10,038 Due after two years through three years 3,831 3,326 Due after three years through four years 805 3,648 Due after four years through five years 753 805 Thereafter 1,711 2,364 Total par value $ 55,079 $ 51,930 |
Bonds by Call Feature | The following table summarizes the Bank’s bonds outstanding by call features (dollars in millions): December 31, 2021 2020 Non-callable or non-putable $ 49,422 $ 48,610 Callable 5,657 3,320 Total par value $ 55,079 $ 51,930 |
Affordable Housing Program (Tab
Affordable Housing Program (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Affordable Housing Program [Abstract] | |
AHP Rollforward | The following table presents a rollforward of the Bank’s AHP liability (dollars in millions): For the Years Ended December 31, 2021 2020 2019 Balance, beginning of year $ 162 $ 157 $ 153 Assessments 23 41 44 Disbursements (54) (36) (40) Balance, end of year $ 131 $ 162 $ 157 . |
Capital (Tables)
Capital (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Banking Regulation, Total Capital [Abstract] | |
MRCS by Contractual Redemption | The following table summarizes changes in MRCS (dollars in millions): For the Years Ended December 31, 2021 2020 2019 Balance, beginning of period $ 52 $ 206 $ 255 Capital stock reclassified to (from) MRCS, net 81 7 11 Net payments for repurchases/redemptions of MRCS (104) (161) (60) Balance, end of period $ 29 $ 52 $ 206 The following table summarizes the Bank’s MRCS by year of contractual redemption (dollars in millions): December 31, Year of Contractual Redemption 1 2021 2020 Due in one year or less $ 10 $ — Due after one year through two years 1 11 Due after two years through three years — 2 Due after three years through four years 1 — Due after four years through five years 9 — Thereafter 2 — 27 Past contractual redemption date due to outstanding activity with the Bank 8 12 Total $ 29 $ 52 1 At the Bank’s election, MRCS 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 MRCS with certain captive insurance companies whose membership terminated on February 19, 2021. As their five year redemption period did not start until the membership termination date, all associated MRCS was reported in this line item as of December 31, 2020. |
Accumulated Other Comprehensive Income | The following table summarizes changes in AOCI (dollars in millions): Net unrealized gains (losses) on AFS securities (Note 4) Pension and postretirement benefits Total AOCI Balance, December 31, 2018 $ 87 $ (3) $ 84 Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) on AFS securities (39) — (39) Reclassification from AOCI to net income Amortization - pension and postretirement — (1) (1) Net current period other comprehensive income (loss) (39) (1) (40) Balance, December 31, 2019 48 (4) 44 Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) on AFS securities 4 — 4 Net current period other comprehensive income (loss) 4 — 4 Balance, December 31, 2020 52 (4) 48 Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) on AFS securities 36 — 36 Net current period other comprehensive income (loss) 36 — 36 Balance, December 31, 2021 $ 88 $ (4) $ 84 |
Regulatory Capital Requirements | The following table shows the Bank’s compliance with the Finance Agency’s regulatory capital requirements (dollars in millions): December 31, 2021 December 31, 2020 Required Actual Required Actual Regulatory capital requirements Risk-based capital $ 585 $ 5,783 $ 704 $ 5,744 Regulatory capital $ 3,434 $ 5,783 $ 3,508 $ 5,744 Leverage capital $ 4,293 $ 8,675 $ 4,385 $ 8,616 Capital-to-assets ratio 4.00 % 6.74 % 4.00 % 6.55 % Capital stock-to-assets ratio 2.00 % 4.08 % 2.00 % 3.78 % Leverage ratio 5.00 % 10.10 % 5.00 % 9.83 % |
Pension and Postretirement Be_2
Pension and Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Multiemployer Plans, Pension [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Funded Status [Table Text Block] | The following table summarizes the net pension cost and funded status of the Pentegra DB Plan (dollars in millions): 2021 2020 2019 Net pension cost 1 $ 9 $ 34 $ 2 Pentegra DB Plan’s funded status as of July 1 2 129.62 % 108.50 % 108.62 % Des Moines Bank DB Plan’s funded status as of July 1 144.35 % 99.57 % 102.81 % Seattle Bank DB Plan’s funded status as of July 1 139.03 % 99.81 % 103.62 % 1 Represents the net pension cost charged to compensation and benefits expense on the Statements of Income for the years ended December 31, 2021, 2020, and 2019. During 2021 and 2020, the Bank made a $8 million and $32 million discretionary contribution to the plan. 2 The Pentegra DB Plan’s funded status is preliminary and may further increase because plan participants are permitted to make contributions through March 15 of the following year. The final funded status as of July 1, 2021 will not be available until the Form 5500 for the plan year July 1, 2021 through June 30, 2022 is filed (this Form 5500 is due to be filed no later than April 2023). The final funded status as of July 1, 2020 will not be available until the Form 5500 for the plan year July 1, 2020 through June 30, 2021 is filed (this Form 5500 is due to be filed no later than April 2022). |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Summary | The following table summarizes the carrying value, fair value, and fair value hierarchy of the Bank’s financial instruments (dollars in millions). The Bank records trading securities, AFS securities, derivative assets, derivative liabilities, financial instruments held under the fair value option, and certain other assets at fair value on a recurring basis, and on occasion certain impaired mortgage loans held for portfolio on a non-recurring basis. The Bank records all other financial assets and liabilities at amortized cost. 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. December 31, 2021 Fair Value Financial Instruments Carrying Value Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Total Assets Cash and due from banks $ 295 $ 295 $ — $ — $ — $ 295 Interest-bearing deposits 416 — 416 — — 416 Securities purchased under agreements to resell 12,450 — 12,450 — — 12,450 Federal funds sold 4,690 — 4,690 — — 4,690 Trading securities 1,169 — 1,169 — — 1,169 Available-for-sale securities 13,389 — 13,389 — — 13,389 Held-to-maturity securities 1,328 — 1,400 5 — 1,405 Advances 44,111 — 44,397 — — 44,397 Mortgage loans held for portfolio, net 7,578 — 7,694 81 — 7,775 Accrued interest receivable 84 — 84 — — 84 Derivative assets, net 221 — 75 — 146 221 Other assets 44 44 — — — 44 Liabilities Deposits (1,847) — (1,847) — — (1,847) Consolidated obligations Discount notes (22,348) — (22,348) — — (22,348) Bonds (55,205) — (55,581) — — (55,581) Total consolidated obligations (77,553) — (77,929) — — (77,929) Mandatorily redeemable capital stock (29) (29) — — — (29) Accrued interest payable (97) — (97) — — (97) Derivative liabilities, net (3) — (179) — 176 (3) 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 (dollars in millions): December 31, 2020 Fair Value Financial Instruments Carrying Value Level 1 Level 2 Level 3 Netting Adjustments and Cash Collateral 1 Total Assets Cash and due from banks $ 978 $ 978 $ — $ — $ — $ 978 Interest-bearing deposits 401 — 401 — — 401 Securities purchased under agreements to resell 4,800 — 4,800 — — 4,800 Federal funds sold 3,695 — 3,695 — — 3,695 Trading securities 4,875 — 4,875 — — 4,875 Available-for-sale securities 15,910 — 15,910 — — 15,910 Held-to-maturity securities 1,816 — 1,915 6 — 1,921 Advances 46,530 — 47,146 — — 47,146 Mortgage loans held for portfolio, net 8,242 — 8,443 75 — 8,518 Accrued interest receivable 97 — 97 — — 97 Derivative assets, net 227 — 59 — 168 227 Other assets 39 39 — — — 39 Liabilities Deposits (1,908) — (1,908) — — (1,908) Consolidated obligations Discount notes (27,345) — (27,346) — — (27,346) Bonds (52,254) — (53,246) — — (53,246) Total consolidated obligations (79,599) — (80,592) — — (80,592) Mandatorily redeemable capital stock (52) (52) — — — (52) Accrued interest payable (145) — (145) — — (145) Derivative liabilities, net (4) — (336) — 332 (4) |
Recurring Fair Value | The following table summarizes, for each hierarchy level, the Bank’s assets and liabilities that are measured at fair value on the Statements of Condition (dollar s in millions): December 31, 2021 Recurring Fair Value Measurements Level 1 Level 2 Level 3 Netting Adjustments and Cash Collateral 1 Total Assets Trading securities U.S. Treasury obligations $ — $ 496 $ — $ — $ 496 Other U.S. obligations — 102 — — 102 GSE and TVA obligations — 60 — — 60 Other non-MBS — 201 — — 201 GSE multifamily MBS — 310 — — 310 Total trading securities — 1,169 — — 1,169 Available-for-sale securities Other U.S. obligations — 1,156 — — 1,156 GSE and TVA obligations — 983 — — 983 State or local housing agency obligations — 488 — — 488 Other non-MBS — 288 — — 288 U.S. obligations single-family MBS — 2,909 — — 2,909 GSE single-family MBS — 277 — — 277 GSE multifamily MBS — 7,288 — — 7,288 Total available-for-sale securities — 13,389 — — 13,389 Derivative assets, net Interest-rate related — 75 — 146 221 Other assets 44 — — — 44 Total recurring assets at fair value $ 44 $ 14,633 $ — $ 146 $ 14,823 Liabilities Discount notes 2 $ — $ (22,348) $ — $ — $ (22,348) Derivative liabilities, net Interest-rate related — (179) — 176 (3) Total recurring liabilities at fair value $ — $ (22,527) $ — $ 176 $ (22,351) 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 on the Statements of Condition (dollars in millions): December 31, 2020 Recurring Fair Value Measurements Level 1 Level 2 Level 3 Netting Adjustments and Cash Collateral 1 Total Assets Trading securities U.S Treasury obligations $ — $ 4,069 $ — $ — $ 4,069 Other U.S. obligations — 114 — — 114 GSE and TVA obligations — 64 — — 64 Other non-MBS — 246 — — 246 GSE multifamily MBS — 382 — — 382 Total trading securities — 4,875 — — 4,875 Available-for-sale securities Other U.S. obligations — 1,672 — — 1,672 GSE and TVA obligations — 1,022 — — 1,022 State or local housing agency obligations — 693 — — 693 Other non-MBS — 302 — — 302 U.S. obligations single-family MBS — 3,544 — — 3,544 GSE single-family MBS — 446 — — 446 GSE multifamily MBS — 8,231 — — 8,231 Total available-for-sale securities — 15,910 — — 15,910 Derivative assets, net Interest-rate related — 58 — 168 226 Mortgage loan purchase commitments — 1 — — 1 Total derivative assets, net — 59 — 168 227 Other assets 39 — — — 39 Total recurring assets at fair value $ 39 $ 20,844 $ — $ 168 $ 21,051 Liabilities Derivative liabilities, net Interest-rate related $ — $ (335) $ — $ 332 $ (3) Forward settlement agreements (TBAs) — (1) — — (1) Total derivative liabilities, net — (336) — 332 (4) Total recurring liabilities at fair value $ — $ (336) $ — $ 332 $ (4) |
Fair Value Option, Disclosures | The following table summarizes the difference between the unpaid principal balance and fair value of outstanding instruments for which the fair value option has been elected (dollars in millions): December 31, 2021 Unpaid Principal Balance Fair Value Fair Value Over (Under) Unpaid Principal Discount Notes $ 22,355 $ 22,348 $ (7) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Off-Balance Sheet Commitments | The following table summarizes additional off-balance sheet commitments for the Bank (dollars in millions): December 31, 2021 December 31, 2020 Expire Expire Total Total Standby letters of credit 1,2 $ 8,117 $ 42 $ 8,159 $ 9,361 Standby bond purchase agreements 2 189 308 497 797 Commitments to purchase mortgage loans 115 — 115 177 Commitments to fund advances 2 1,726 2 1,728 252 1 Excludes commitments to issue standby letters of credit, when applicable. At both December 31, 2021 and 2020 , the Bank had no commitments to issue standby letters of credit. 2 The Bank has deemed it unnecessary to record any liability for credit losses on these agreements at December 31, 2021 and 2020 . |
Activities with Stockholders (T
Activities with Stockholders (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Transactions with Directors' Financial Institutions | The following table summarizes the Bank’s outstanding transactions with Directors’ Financial Institutions (dollars in millions): December 31, 2021 December 31, 2020 Amount % of Total Amount % of Total Advances $ 17 — $ 1,526 3 Mortgage loans 119 2 154 2 Deposits 15 1 17 1 Capital stock 43 1 110 3 |
Activities with Other FHLBanks
Activities with Other FHLBanks (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Activities with Other FHLBanks [Abstract] | |
Loans to Other Federal Home Loan Banks | The following table summarizes loan activity to other FHLBanks during the years ended December 31, 2021, 2020, and 2019 (dollars in millions): Other FHLBank Beginning Loans Principal Ending 2021 Chicago $ — $ 301 $ (301) $ — 2020 Boston $ — $ 250 $ (250) $ — Pittsburgh — 5 (5) — $ — $ 255 $ (255) $ — 2019 Atlanta $ — $ 565 $ (565) $ — Indianapolis — 550 (550) — Topeka — 150 (150) — $ — $ 1,265 $ (1,265) $ — |
Loans from Other Federal Home Loan Banks | The following table summarizes borrowing activity from other FHLBanks during the years ended December 31, 2021, 2020, and 2019 (dollars in millions): Other FHLBank Beginning Borrowing Principal Ending 2021 Chicago $ — $ 5 $ (5) $ — 2020 Pittsburgh $ — $ 5 $ (5) $ — 2019 Atlanta $ 500 $ 400 $ (900) $ — |
Background Information (Details
Background Information (Details) | Dec. 31, 2021bank |
Background Information [Abstract] | |
Number of Federal Home Loan Banks | 11 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Financial Instrument Meeting Netting Requirements (Details) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities Purchased under Agreements to Resell | $ 12,450 | $ 4,800 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Premises and Equipment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Net | $ 59 | $ 64 | |
Accumulated Depreciation and Amortization | 36 | 44 | |
Depreciation and Amortization Expense | $ 7 | $ 8 | $ 14 |
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life | 3 years | ||
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life | 40 years |
Cash and Due from Banks (Detail
Cash and Due from Banks (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash and Due from Banks [Abstract] | ||
Average Collected Cash Balances with Commercial Banks, Federal Home Loan Bank | $ 43 | $ 210 |
Investments, (Narrative) (Detai
Investments, (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Interest-Bearing Deposits, Securities Purchased Under Agreements to Resell, and Federal Funds Sold, Percentage Rated Below Triple-B | 0.00% | 0.00% |
Interest-Bearing Deposits, Securities Purchased Under Agreements to Resell, and Federal Funds Sold, Percentage Unrated | 0.00% | 21.00% |
Available-for-Sale Debt Securities and Held-to-Maturity Debt Securities Amortized Cost, Percentage Rated Single-A Or Above | 100.00% | 100.00% |
Securities Purchased under Agreements to Resell, Allowance for Credit Loss | $ 0 | $ 0 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss | 28 | 31 |
Debt Securities, Held-to-maturity, Allowance for Credit Loss | 0 | 0 |
Debt Securities, Held-to-Maturity, Accrued Interest, after Allowance for Credit Loss | 5 | 5 |
Interest-Bearing Deposits and Federal Funds Sold | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financial Asset, Amortized Cost, Accrued Interest, after Allowance for Credit Loss | 0 | 0 |
Financing Receivable, Allowance for Credit Losses | 0 | 0 |
Securities Borrowed or Purchased under Agreements to Resell | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financial Asset, Amortized Cost, Accrued Interest, after Allowance for Credit Loss | $ 0 | $ 0 |
Investments (Trading Major Secu
Investments (Trading Major Security Types) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | $ 1,169 | $ 4,875 |
US Treasury Securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 496 | 4,069 |
U.S. Obligations [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 102 | 114 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 60 | 64 |
Other [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 201 | 246 |
Non-Mortgage-Backed Securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 859 | 4,493 |
GSE MBS [Member] | Multifamily [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | $ 310 | $ 382 |
Investments (Net Gains and Loss
Investments (Net Gains and Losses on Trading Securities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |||
Debt Securities, Trading, Unrealized Gain | $ (28) | $ 17 | $ 28 |
Debt Securities, Trading, Realized Gain (Loss) | (10) | 0 | 0 |
Net gains (losses) on trading securities | $ (38) | $ 17 | $ 28 |
Investments (AFS Major Security
Investments (AFS Major Security Types) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | $ 13,301 | $ 15,858 |
Gross Unrealized Gains | 111 | 107 |
Gross Unrealized Losses | (23) | (55) |
Available-for-Sale Securities | 13,389 | 15,910 |
U.S. Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 1,152 | 1,670 |
Gross Unrealized Gains | 5 | 4 |
Gross Unrealized Losses | (1) | (2) |
Available-for-Sale Securities | 1,156 | 1,672 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 953 | 1,000 |
Gross Unrealized Gains | 30 | 22 |
Gross Unrealized Losses | 0 | 0 |
Available-for-Sale Securities | 983 | 1,022 |
State or Local Housing Agency Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 492 | 712 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (4) | (19) |
Available-for-Sale Securities | 488 | 693 |
Other [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 277 | 290 |
Gross Unrealized Gains | 11 | 12 |
Gross Unrealized Losses | 0 | 0 |
Available-for-Sale Securities | 288 | 302 |
Non-Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 2,874 | 3,672 |
Gross Unrealized Gains | 46 | 38 |
Gross Unrealized Losses | (5) | (21) |
Available-for-Sale Securities | 2,915 | 3,689 |
U.S. Obligations MBS [Member] | Single Family [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 2,890 | 3,527 |
Gross Unrealized Gains | 19 | 18 |
Gross Unrealized Losses | 0 | (1) |
Available-for-Sale Securities | 2,909 | 3,544 |
GSE MBS [Member] | Single Family [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 273 | 442 |
Gross Unrealized Gains | 4 | 4 |
Gross Unrealized Losses | 0 | 0 |
Available-for-Sale Securities | 277 | 446 |
GSE MBS [Member] | Multifamily [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 7,264 | 8,217 |
Gross Unrealized Gains | 42 | 47 |
Gross Unrealized Losses | (18) | (33) |
Available-for-Sale Securities | 7,288 | 8,231 |
Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 10,427 | 12,186 |
Gross Unrealized Gains | 65 | 69 |
Gross Unrealized Losses | (18) | (34) |
Available-for-Sale Securities | $ 10,474 | $ 12,221 |
Investments (AFS Unrealized Los
Investments (AFS Unrealized Losses) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 2,357 | $ 1,346 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (3) | (23) |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 3,570 | 5,154 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (20) | (32) |
Debt Securities, Available-for-sale, Unrealized Loss Position | 5,927 | 6,500 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (23) | (55) |
U.S. Obligations [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 80 | 348 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 115 | 698 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (1) | (2) |
Debt Securities, Available-for-sale, Unrealized Loss Position | 195 | 1,046 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (1) | (2) |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 355 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 0 | |
Debt Securities, Available-for-sale, Unrealized Loss Position | 355 | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 0 | |
State or Local Housing Agency Obligations [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 0 | 336 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | (15) |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 451 | 288 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (4) | (4) |
Debt Securities, Available-for-sale, Unrealized Loss Position | 451 | 624 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (4) | (19) |
Non-Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 435 | 684 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | (15) |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 566 | 986 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (5) | (6) |
Debt Securities, Available-for-sale, Unrealized Loss Position | 1,001 | 1,670 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (5) | (21) |
U.S. Obligations MBS [Member] | Single Family [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 89 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 87 | 593 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 0 | (1) |
Debt Securities, Available-for-sale, Unrealized Loss Position | 176 | 593 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 0 | (1) |
GSE MBS [Member] | Single Family [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 2 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | 14 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 0 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 2 | 14 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 0 | 0 |
GSE MBS [Member] | Multifamily [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 1,831 | 662 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (3) | (8) |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 2,917 | 3,561 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (15) | (25) |
Debt Securities, Available-for-sale, Unrealized Loss Position | 4,748 | 4,223 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (18) | (33) |
Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 1,922 | 662 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (3) | (8) |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 3,004 | 4,168 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (15) | (26) |
Debt Securities, Available-for-sale, Unrealized Loss Position | 4,926 | 4,830 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | $ (18) | $ (34) |
Investments (AFS Contractual Ma
Investments (AFS Contractual Maturity) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | $ 13,301 | $ 15,858 |
Available-for-Sale Securities | 13,389 | 15,910 |
Non-Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturities, Due in One Year or Less, Amortized Cost | 422 | 4 |
Contractual Maturities, Due in One Year or Less, Fair Value | 422 | 4 |
Contractual Maturities, Due after One Year through Five Years, Amortized Cost | 1,538 | 2,430 |
Contractual Maturities, Due after One Year through Five Years, Fair Value | 1,548 | 2,438 |
Contractual Maturities, Due after Five Years through Ten Years, Amortized Cost | 348 | 494 |
Contractual Maturities, Due after Five Years through Ten Years, Fair Value | 356 | 498 |
Contractual Maturities, Due after Ten Years, Amortized Cost | 566 | 744 |
Contractual Maturities, Due after Ten Years, Fair Value | 589 | 749 |
Available-for-Sale Securities, Amortized Cost | 2,874 | 3,672 |
Available-for-Sale Securities | 2,915 | 3,689 |
Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 10,427 | 12,186 |
Available-for-Sale Securities | $ 10,474 | $ 12,221 |
Investments HTM Major Security
Investments HTM Major Security Types) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 1,328 | $ 1,816 |
Gross Unrealized Gains | 78 | 108 |
Gross Unrealized Losses | (1) | (3) |
Held-to-Maturity Securities, Fair Value | 1,405 | 1,921 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 374 | 379 |
Gross Unrealized Gains | 71 | 97 |
Gross Unrealized Losses | 0 | 0 |
Held-to-Maturity Securities, Fair Value | 445 | 476 |
State or Local Housing Agency Obligations [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 187 | 203 |
Gross Unrealized Gains | 1 | 2 |
Gross Unrealized Losses | (1) | (1) |
Held-to-Maturity Securities, Fair Value | 187 | 204 |
Non-Mortgage-Backed Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 561 | 582 |
Gross Unrealized Gains | 72 | 99 |
Gross Unrealized Losses | (1) | (1) |
Held-to-Maturity Securities, Fair Value | 632 | 680 |
U.S. Obligations MBS [Member] | Single Family [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 2 | 3 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Held-to-Maturity Securities, Fair Value | 2 | 3 |
GSE MBS [Member] | Single Family [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 760 | 1,225 |
Gross Unrealized Gains | 6 | 9 |
Gross Unrealized Losses | 0 | (2) |
Held-to-Maturity Securities, Fair Value | 766 | 1,232 |
Private-Label MBS [Member] | Residential Mortgage Backed Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 5 | 6 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Held-to-Maturity Securities, Fair Value | 5 | 6 |
Mortgage-Backed Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 767 | 1,234 |
Gross Unrealized Gains | 6 | 9 |
Gross Unrealized Losses | 0 | (2) |
Held-to-Maturity Securities, Fair Value | $ 773 | $ 1,241 |
Investments (HTM Contractual Ma
Investments (HTM Contractual Maturity) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 1,328 | $ 1,816 |
Held-to-Maturity Securities, Fair Value | 1,405 | 1,921 |
Mortgage-Backed Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 767 | 1,234 |
Held-to-Maturity Securities, Fair Value | 773 | 1,241 |
Non-Mortgage-Backed Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Contractual Maturities, Due after One Year through Five Years, Amortized Cost | 257 | 252 |
Contractual Maturities, Due after One Year through Five Years, Fair Value | 287 | 297 |
Contractual Maturities, Rolling Year Six Through Ten, Amortized Cost | 196 | 198 |
Contractual Maturities, Rolling Year Six Through Ten, Fair Value | 204 | 203 |
Contractual Maturities, Due after Ten Years, Amortized Cost | 108 | 132 |
Contractual Maturities, Due after Ten Years, Fair Value | 141 | 180 |
Amortized Cost | 561 | 582 |
Held-to-Maturity Securities, Fair Value | $ 632 | $ 680 |
Advances (Narrative) (Details)
Advances (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Federal Home Loan Bank, Advances [Line Items] | |||
Advances | $ 44,111 | $ 46,530 | |
Advances, Par Value | 44,139 | 46,088 | |
Financing Receivable, Non-Accrual | 86 | 93 | |
Prepayment Fees on Advances, Net | $ 47 | $ 75 | $ 9 |
Concentration Risk, Market Risk | The Bank’s advances are primarily concentrated in commercial banks and insurance companies. | The Bank’s advances are primarily concentrated in commercial banks and insurance companies. | |
Federal Home Loan Bank Advances | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Financing Receivable, Past Due | $ 0 | $ 0 | |
Financing Receivable, Non-Accrual | 0 | 0 | |
Financing Receivable, Troubled Debt Restructuring | 0 | 0 | |
Impaired Financing Receivable, Unpaid Principal Balance | 0 | 0 | |
Financing Receivable, Allowance for Credit Losses | 0 | 0 | |
Financing Receivable, Accrued Interest, after Allowance for Credit Loss | $ 13 | 13 | |
Minimum [Member] | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Federal Home Loan Bank, Advances, Maturity Period, Fixed Rate | 1 day | ||
Federal Home Loan Bank, Advances, Maturity Period, Variable Rate | 1 month | ||
Maximum [Member] | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Federal Home Loan Bank, Advances, Maturity Period, Fixed Rate | 30 years | ||
Federal Home Loan Bank, Advances, Maturity Period, Variable Rate | 5 years | ||
Federal Home Loan Bank, Advances, Callable Option [Member] | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Advances, Par Value | $ 13,400 | 11,700 | |
Federal Home Loan Bank, Advances, Putable Option [Member] | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Advances, Par Value | $ 1,100 | $ 1,400 |
Advances (Redemption Terms) (De
Advances (Redemption Terms) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Advances [Abstract] | ||
Overdrawn Demand Deposit Accounts | $ 0 | $ 3 |
Advances, Maturing in Next Rolling Twelve Months | 12,441 | 12,499 |
Advances, Maturing in Rolling Year Two | 7,415 | 8,265 |
Advances, Maturing in Rolling Year Three | 9,956 | 10,550 |
Advances, Maturing in Rolling Year Four | 4,939 | 7,011 |
Advances, Maturing in Rolling Year Five | 6,275 | 4,106 |
Advances, Maturing after Rolling Year Five | 3,113 | 3,654 |
Advances, Par Value | $ 44,139 | $ 46,088 |
Advances, Weighted Average Interest Rate on Overdrawn Demand Deposit | 0.00% | 1.29% |
Advances, Weighted Average Interest Rate, Maturing in Next Twelve Rolling Months | 1.18% | 1.16% |
Advances, Weighted Average Interest Rate, Maturing in Rolling Year Two | 1.72% | 1.69% |
Advances, Weighted Average Interest Rate, Maturing in Rolling Year Three | 1.04% | 1.42% |
Advances, Weighted Average Interest Rate, Maturing in Rolling Year Four | 0.94% | 1.38% |
Advances, Weighted Average Interest Rate, Maturing in Rolling Year Five | 0.95% | 1.12% |
Advances, Weighted Average Interest Rate, Maturing after Rolling Year Five | 2.07% | 2.10% |
Advances, Weighted Average Interest Rate | 1.24% | 1.42% |
Premiums | $ 14 | $ 18 |
Discounts | (2) | (3) |
Federal Home Loan Bank, Advances, Valuation Adjustments for Hedging Activities | (40) | 427 |
Total Advances | 44,111 | 46,530 |
Advances, Earlier of Contractual Maturity or Next Call Date, in Next Rolling Twelve Months | 24,690 | 23,622 |
Advances, Earlier of Contractual Maturity or Next Call Date, in Rolling Year Two | 6,253 | 6,276 |
Advances, Earlier of Contractual Maturity or Next Call Date, in Rolling Year Three | 4,429 | 6,436 |
Advances, Earlier of Contractual Maturity or Next Call Date, in Rolling Year Four | 2,357 | 4,053 |
Advances, Earlier of Contractual Maturity or Next Call Date, in Rolling Year Five | 3,273 | 2,169 |
Advances, Earlier of Contractual Maturity or Next Call Date, after Rolling Year Five | 3,137 | 3,529 |
Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Next Rolling Twelve Months | 13,270 | 13,486 |
Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Rolling Year Two | 7,429 | 8,319 |
Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Rolling Year Three | 9,173 | 10,464 |
Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Rolling Year Four | 4,889 | 6,116 |
Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Rolling Year Five | 6,276 | 4,057 |
Advances, Earlier of Contractual Maturity or Next Put or Convert Date, after Rolling Year Five | $ 3,102 | $ 3,643 |
Mortgage Loans Held for Portf_3
Mortgage Loans Held for Portfolio (Mortgage Loans Held for Portfolio) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, before Fees, Gross | $ 7,479 | $ 8,127 |
Loans and Leases Receivable, Unamortized Premiums | 96 | 107 |
Loans and Leases Receivable, Unamortized Discounts | (2) | (3) |
Loans and Leases Receivable, Hedging Basis Adjustment | 6 | 12 |
Loans and Leases Receivable, Net of Deferred Income | 7,579 | 8,243 |
Allowance for credit losses on mortgage loans | (1) | (1) |
Loans and Leases Receivable, Net Amount | 7,578 | 8,242 |
Loans Receivable With Fixed Rates Of Interest Long Term [Member] | Single Family [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, before Fees, Gross | 6,307 | 6,945 |
Loans Receivable With Fixed Rates Of Interest Medium Term [Member] | Single Family [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, before Fees, Gross | $ 1,172 | $ 1,182 |
Mortgage Loans Held for Portf_4
Mortgage Loans Held for Portfolio (Collateral or Guarantee Type) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans And Leases Receivable, Unpaid Principal Balance | $ 7,479 | $ 8,127 |
Conventional Mortgage Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans And Leases Receivable, Unpaid Principal Balance | 7,063 | 7,646 |
Loans Insured or Guaranteed by US Government Authorities [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans And Leases Receivable, Unpaid Principal Balance | $ 416 | $ 481 |
Mortgage Loans Held for Portf_5
Mortgage Loans Held for Portfolio (Narrative and Forbearance) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loan in Forbearance Percent | 0.00% | 0.00% |
Loans in Forbearance Agreement | $ 7 | $ 53 |
TDRs under CARES Act Relief | 22 | 1 |
Loans and Leases Receivable, Allowance | 1 | 1 |
Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans in Forbearance Agreement | 0 | 3 |
Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans in Forbearance Agreement | 1 | 6 |
Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans in Forbearance Agreement | 5 | 42 |
Performing Financial Instruments | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans in Forbearance Agreement | 1 | 2 |
Loans Insured or Guaranteed by US Government Authorities [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing Receivable, Allowance for Credit Losses | 0 | 0 |
Conventional Mortgage Loans [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing Receivable, Nonaccrual, No Allowance | 74 | 52 |
Loans and Leases Receivable, Allowance | 1 | 1 |
Real Estate Loan | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing Receivable, Accrued Interest, after Allowance for Credit Loss | $ 34 | $ 40 |
Mortgage Loans Held for Portf_6
Mortgage Loans Held for Portfolio (Payment Status) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | $ 7,579 | $ 8,243 |
Conventional Mortgage Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 1,873 | 2,026 |
Financing Receivable, Originated, Current Fiscal Year and Preceeding Four Preceeding Fiscal Years | 5,282 | 5,726 |
Loans and Leases Receivable, Net of Deferred Income | 7,155 | 7,752 |
Nonperforming Financial Instruments | Conventional Mortgage Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 47 | 74 |
Financing Receivable, Originated, Current Fiscal Year and Preceeding Four Preceeding Fiscal Years | 25 | 65 |
Loans and Leases Receivable, Net of Deferred Income | 72 | 139 |
Performing Financial Instruments | Conventional Mortgage Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 1,826 | 1,952 |
Financing Receivable, Originated, Current Fiscal Year and Preceeding Four Preceeding Fiscal Years | 5,257 | 5,661 |
Loans and Leases Receivable, Net of Deferred Income | 7,083 | 7,613 |
Financial Asset, 30 to 59 Days Past Due [Member] | Conventional Mortgage Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 19 | 19 |
Financing Receivable, Originated, Current Fiscal Year and Preceeding Four Preceeding Fiscal Years | 17 | 18 |
Loans and Leases Receivable, Net of Deferred Income | 36 | 37 |
Financial Asset, 60 to 89 Days Past Due [Member] | Conventional Mortgage Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 5 | 9 |
Financing Receivable, Originated, Current Fiscal Year and Preceeding Four Preceeding Fiscal Years | 3 | 9 |
Loans and Leases Receivable, Net of Deferred Income | 8 | 18 |
Financing Receivables, 90 to 179 Days Past Due [Member] | Conventional Mortgage Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 7 | 21 |
Financing Receivable, Originated, Current Fiscal Year and Preceeding Four Preceeding Fiscal Years | 2 | 21 |
Loans and Leases Receivable, Net of Deferred Income | 9 | 42 |
Financing Receivables, Greater than 180 Days Past Due [Member] | Conventional Mortgage Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 16 | 25 |
Financing Receivable, Originated, Current Fiscal Year and Preceeding Four Preceeding Fiscal Years | 3 | 17 |
Loans and Leases Receivable, Net of Deferred Income | $ 19 | $ 42 |
Mortgage Loans Held for Portf_7
Mortgage Loans Held for Portfolio (Other Delinquency Statistics) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Mortgage Loans in Process of Foreclosure, Amount | $ 5 | $ 9 |
Serious Delinquency Rate | 1.00% | 1.00% |
Past Due 90 Days or More and Still Accruing Interest | $ 11 | $ 13 |
Financing Receivable, Non-Accrual | 86 | 93 |
Loans Insured or Guaranteed by US Government Authorities [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Mortgage Loans in Process of Foreclosure, Amount | $ 1 | $ 1 |
Serious Delinquency Rate | 3.00% | 3.00% |
Past Due 90 Days or More and Still Accruing Interest | $ 11 | $ 13 |
Financing Receivable, Non-Accrual | 0 | 0 |
Conventional Mortgage Loans [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Mortgage Loans in Process of Foreclosure, Amount | $ 4 | $ 8 |
Serious Delinquency Rate | 0.00% | 1.00% |
Past Due 90 Days or More and Still Accruing Interest | $ 0 | $ 0 |
Financing Receivable, Non-Accrual | $ 86 | $ 93 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Derivatives in Statement of Condition) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | $ 81,396 | $ 35,715 |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 75 | 59 |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 179 | 336 |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 146 | 168 |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (176) | (332) |
Derivative assets, net | 221 | 227 |
Derivative liabilities, net | 3 | 4 |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 20 | 7 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 342 | 507 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 57,502 | 33,552 |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 68 | 46 |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 136 | 262 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 23,894 | 2,163 |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 7 | 13 |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 43 | 74 |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 23,664 | 1,817 |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 7 | 12 |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 43 | 73 |
Mortgage-Backed Securities [Member] | Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 115 | 169 |
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 | 1 |
Mortgage Receivable [Member] | Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 115 | 177 |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | 1 |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | $ 0 | $ 0 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities Net Gains (Losses) on Fair Value Hedging Relationships (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Advances | $ 472 | $ 950 | $ 2,466 |
Available-for-sale securities | 101 | 206 | 506 |
Consolidated obligations - Bonds | (452) | (915) | (2,289) |
Interest Rate Contract [Member] | Interest Income [Member] | Advances [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gains (Losses) on Derivatives | 246 | (455) | (223) |
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (467) | 271 | 276 |
Gain (Loss) on Fair Value Hedges Recognized in Net Interest Income | (221) | (184) | 53 |
Interest Rate Contract [Member] | Interest Income [Member] | Available-for-sale Securities [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gains (Losses) on Derivatives | 127 | (283) | (233) |
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (267) | 173 | 224 |
Gain (Loss) on Fair Value Hedges Recognized in Net Interest Income | (140) | (110) | (9) |
Interest Rate Contract [Member] | Interest Expense [Member] | Consolidated Obligation Bonds [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gains (Losses) on Derivatives | (23) | 261 | 188 |
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 146 | (150) | (357) |
Gain (Loss) on Fair Value Hedges Recognized in Net Interest Income | $ 123 | $ 111 | $ (169) |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities Cumulative Basis Adjustments for FV Hedges (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Consolidated Obligation Bonds [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedged Liability, Fair Value Hedge | $ 34,271 | $ 12,163 |
Hedged Liability, Active Fair Value Hedge, Cumulative Increase (Decrease) | 11 | 161 |
Hedged Liability, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | (5) | (10) |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | 6 | 151 |
Advances [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedged Asset, Fair Value Hedge | 17,598 | 17,875 |
Hedged Asset, Active Fair Value Hedge, Cumulative Increase (Decrease) | (54) | 406 |
Hedged Asset, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | 14 | 21 |
Hedged Asset, Fair Value Hedge, Cumulative Increase (Decrease) | (40) | 427 |
Available-for-sale Securities [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedged Asset, Fair Value Hedge | 6,547 | 7,137 |
Hedged Asset, Active Fair Value Hedge, Cumulative Increase (Decrease) | 73 | 340 |
Hedged Asset, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | 0 | 0 |
Hedged Asset, Fair Value Hedge, Cumulative Increase (Decrease) | $ 73 | $ 340 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities (Economic Derivatives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives Not Designated as Hedging Instruments, Gain (Loss), Net | $ 14 | $ (48) | $ (35) |
Gain (Loss) on Derivative Instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives Not Designated as Hedging Instruments, Gain (Loss), Net | 14 | (48) | (35) |
Gain (Loss) on Derivative Instruments [Member] | Interest Rate Swap [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives Not Designated as Hedging Instruments, Gain (Loss), Net | 31 | (32) | (34) |
Gain (Loss) on Derivative Instruments [Member] | Net Interest Settlements [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives Not Designated as Hedging Instruments, Gain (Loss), Net | (17) | (14) | (1) |
Gain (Loss) on Derivative Instruments [Member] | Mortgage-Backed Securities [Member] | Forward Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives Not Designated as Hedging Instruments, Gain (Loss), Net | 3 | (13) | (5) |
Mortgage Receivable [Member] | Gain (Loss) on Derivative Instruments [Member] | Forward Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives Not Designated as Hedging Instruments, Gain (Loss), Net | $ (3) | $ 11 | $ 5 |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities (Credit Risk Exposure) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative, Net Liability Position, Aggregate Fair Value | $ 0 |
Collateral Already Posted, Aggregate Fair Value | 0 |
Additional Collateral, Aggregate Fair Value | $ 0 |
Derivatives and Hedging Activ_8
Derivatives and Hedging Activities (Offsetting of Derivative Assets and Derivative Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Offsetting Assets and Liabilities [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 75 | $ 58 |
Derivative Liability, Fair Value, Gross Liability | 179 | 336 |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 146 | 168 |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (176) | (332) |
Derivative Asset, Not Subject to Master Netting Arrangement | 0 | 1 |
Derivative Liability, Not Subject to Master Netting Arrangement | 0 | 0 |
Derivative Asset | 221 | 227 |
Derivative Liability | 3 | 4 |
Over the Counter [Member] | ||
Offsetting Assets and Liabilities [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 74 | 58 |
Derivative Liability, Fair Value, Gross Liability | 172 | 328 |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (73) | (58) |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (170) | (324) |
Derivative Asset, Not Subject to Master Netting Arrangement | 0 | 1 |
Derivative Liability, Not Subject to Master Netting Arrangement | 0 | 0 |
Derivative Asset | 1 | 1 |
Derivative Liability | 2 | 4 |
Exchange Cleared [Member] | ||
Offsetting Assets and Liabilities [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 1 | 0 |
Derivative Liability, Fair Value, Gross Liability | 7 | 8 |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 219 | 226 |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (6) | (8) |
Derivative Asset, Not Subject to Master Netting Arrangement | 0 | 0 |
Derivative Liability, Not Subject to Master Netting Arrangement | 0 | 0 |
Derivative Asset | 220 | 226 |
Derivative Liability | $ 1 | $ 0 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deposits [Abstract] | ||
Interest-Bearing Domestic Deposit, Demand | $ 1,659 | $ 1,586 |
Interest-Bearing Domestic Deposit, Time Deposits | 59 | 49 |
Non-Interest-Bearing Domestic Deposit, Demand | 129 | 273 |
Total deposits | $ 1,847 | $ 1,908 |
Consolidated Obligations (Narra
Consolidated Obligations (Narrative) (Details) - USD ($) $ in Billions | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Short-term and Long-term Debt [Line Items] | ||
Obligation with Joint and Several Liability Arrangement, Amount Outstanding | $ 575.5 | $ 667.5 |
FHLBanks [Member] | ||
Schedule of Short-term and Long-term Debt [Line Items] | ||
Obligation with Joint and Several Liability Arrangement, Amount Outstanding | $ 652.9 | $ 746.8 |
Consolidated Obligations (Disco
Consolidated Obligations (Discount Notes) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Short-term Debt [Line Items] | ||
Total | $ 22,348 | $ 27,345 |
Short-term Debt [Member] | ||
Short-term Debt [Line Items] | ||
Par Value | $ 22,355 | $ 27,350 |
Par Weighted Average Interest Rate | 0.08% | 0.10% |
Discounts and Concessions | $ (6) | $ (5) |
Fair Value, Option, Aggregate Differences, Consolidated Obligation Discount Notes | (1) | $ 0 |
Consolidated Obligation Discount Notes [Member] | ||
Short-term Debt [Line Items] | ||
Fair Value, Option, Aggregate Differences, Consolidated Obligation Discount Notes | $ (7) |
Consolidated Obligations (Bonds
Consolidated Obligations (Bonds) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total Par Value | $ 55,079 | $ 51,930 |
Total | 55,205 | 52,254 |
Consolidated Obligation Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Total Par Value | 55,079 | 51,930 |
Due in one year or less | $ 38,778 | $ 29,224 |
Due in one year or less, Weighted Average Interest Rate | 0.30% | 0.88% |
Due after one year through two years | $ 3,928 | $ 9,398 |
Due after one year through two years, Weighted Average Interest Rate | 2.06% | 1.10% |
Due after two years through three years | $ 5,073 | $ 3,296 |
Due after two years through three years, Weighted Average Interest Rate | 2.41% | 2.42% |
Due after three years through four years | $ 1,010 | $ 3,548 |
Due after three years through four years, Weighted Average Interest Rate | 2.11% | 3.00% |
Due after four years through five years | $ 1,185 | $ 1,058 |
Due after four years through five years, Weighted Average Interest Rate | 1.97% | 2.19% |
Thereafter | $ 5,105 | $ 5,406 |
Thereafter, Weighted Average Interest Rate | 2.27% | 2.50% |
Total par value, Weighted Average Interest Rate | 0.87% | 1.36% |
Premiums | $ 138 | $ 199 |
Discounts and Concessions | (17) | (26) |
Fair value hedging adjustments | 5 | 151 |
Earlier of Contractual Maturity or Next Call Date [Member] | Consolidated Obligation Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Due in one year or less | 44,071 | 31,749 |
Due after one year through two years | 3,908 | 10,038 |
Due after two years through three years | 3,831 | 3,326 |
Due after three years through four years | 805 | 3,648 |
Due after four years through five years | 753 | 805 |
Thereafter | $ 1,711 | $ 2,364 |
Consolidated Obligations (Bon_2
Consolidated Obligations (Bonds by Call Features) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total Par Value | $ 55,079 | $ 51,930 |
Consolidated Obligation Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Total Par Value | 55,079 | 51,930 |
Consolidated Obligation Bonds [Member] | Noncallable or Nonputable [Member] | ||
Debt Instrument [Line Items] | ||
Total Par Value | 49,422 | 48,610 |
Consolidated Obligation Bonds [Member] | Callable [Member] | ||
Debt Instrument [Line Items] | ||
Total Par Value | $ 5,657 | $ 3,320 |
Affordable Housing Program (Nar
Affordable Housing Program (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Affordable Housing Program [Abstract] | ||
Affordable Housing Program, Contribution Requirement, Percentage | 10.00% | 10.00% |
Affordable Housing Program, Contribution Requirement, Amount | $ 100 | $ 100 |
Affordable Housing Program (AHP
Affordable Housing Program (AHP Rollforward) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Affordable Housing Program [Line Items] | |||
Affordable Housing Program Obligation, Beginning of Year | $ 162 | $ 157 | $ 153 |
Affordable Housing Program Assessments | 23 | 41 | 44 |
Payments for Affordable Housing Programs | (54) | (36) | (40) |
Affordable Housing Program Obligation, End of Year | $ 131 | $ 162 | $ 157 |
Capital Language (Details)
Capital Language (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020USD ($)$ / shares | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 100 | $ 100 |
Number of Subclasses of Capital Stock | 2 | |
Minimum Capital Stock Required to be Held by Members as a Percent of Total Assets at Preceeding Fiscal Year End, Subject to Cap and Floor | 0.12% | |
Activity Based Capital Stock Required by Members as a Percent of Total Advances and Mortgage Loans Oustanding as Disclosed in the Statement of Condition | 4.00% | |
Redemption Period Under Bank Capital Plan | 5 years | |
Written Notice Period Required to Repurchase Excess Membership Capital Stock | 15 days | |
Percentage of Activity Based Capital Stock Required by Members as a Percent of Total Standby Letters of Credit | 0.10% | |
Percent of Average Balance of Outstanding Consolidated Obligations Prescribed per the Joint Capital Enhancement Agreement for Each Previous Quarter | 1.00% | |
Excess Capital | $ 0 | $ 0 |
Maximum [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Federal Home Loan Banks, Membership Requirements, Capital Stock | 10,000,000 | |
Minimum [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Federal Home Loan Banks, Membership Requirements, Capital Stock | $ 10,000 |
Capital (Mandatorily Redeemable
Capital (Mandatorily Redeemable Capital Stock) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Banking Regulation, Total Capital [Abstract] | ||||
Financial Instruments Subject to Mandatory Redemption, Redeemable within One year | $ 10 | $ 0 | ||
Financial Instruments Subject to Mandatory Redemption, Redeemable in Year Two | 1 | 11 | ||
Financial Instruments Subject to Mandatory Redemption, Redeemable in Year Three | 0 | 2 | ||
Financial Instruments Subject to Mandatory Redemption, Redeemable in Year Four | 1 | 0 | ||
Financial Instruments Subject to Mandatory Redemption, Redeemable in Year Five | 9 | 0 | ||
Financial Instruments Subject to Mandatory Redemption, Redeemable After Year Five | 0 | 27 | ||
Financial Instruments Subject to Mandatory Redemption, Past Contractual Redemption Date, Due to Outstanding Activity | 8 | 12 | ||
Financial Instruments Subject to Mandatory Redemption | 29 | 52 | $ 206 | $ 255 |
MRCS Interest Expense | $ 2 | $ 5 | $ 12 |
Capital (Rollforward of MRCS) (
Capital (Rollforward of MRCS) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
MRCS [Abstract] | |||
MRCS, Beginning of Year | $ 52 | $ 206 | $ 255 |
Net Shares Reclassified to Mandatorily Redeemable Capital Stock, Value | 81 | 7 | 11 |
Net Repayments for Repurchases/Redemption of Mandatorily Redeemable Capital Stock | (104) | (161) | (60) |
MRCS, End of Year | $ 29 | $ 52 | $ 206 |
Capital (Restricted Retained Ea
Capital (Restricted Retained Earnings) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Banking Regulation, Total Capital [Abstract] | ||
Percent of Average Balance of Outstanding Consolidated Obligations Prescribed per the Joint Capital Enhancement Agreement for Each Previous Quarter | 1.00% | |
Retained Earnings, Appropriated | $ 617 | $ 576 |
Quarterly Net Income Allocated to Restricted Retained Earnings | 20.00% |
Capital (Accumulated Other Comp
Capital (Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ 5,740 | $ 6,726 | $ 7,548 |
OCI, Unrealized Holding Gain (Loss) on Securities | 36 | 4 | (39) |
Total other comprehensive income (loss) | 36 | 4 | (40) |
Ending Balance | 5,838 | 5,740 | 6,726 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 52 | 48 | 87 |
OCI, Unrealized Holding Gain (Loss) on Securities | 4 | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax | 0 | ||
Total other comprehensive income (loss) | 36 | 4 | (39) |
Ending Balance | 88 | 52 | 48 |
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (4) | (4) | (3) |
OCI, Unrealized Holding Gain (Loss) on Securities | 0 | 0 | 0 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax | (1) | ||
Total other comprehensive income (loss) | 0 | 0 | (1) |
Ending Balance | (4) | (4) | (4) |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 48 | 44 | 84 |
OCI, Unrealized Holding Gain (Loss) on Securities | 36 | 4 | (39) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax | (1) | ||
Total other comprehensive income (loss) | 36 | 4 | (40) |
Ending Balance | $ 84 | $ 48 | $ 44 |
Capital (Regulatory Capital Req
Capital (Regulatory Capital Requirements) (Details) $ in Millions | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Banking Regulation, Total Capital [Abstract] | ||
Number of Finance Agency Regulatory Capital Requirements | 3 | |
Multiplier for Determining Permanent Capital in Leverage Capital Calculation | 1.5 | |
Multiplier for Determining Nonpermanent Capital in Leverage Capital Calculation | 1 | |
Risk-Based Capital, Required | $ 585 | $ 704 |
Risk-Based Capital, Actual | $ 5,783 | $ 5,744 |
Regulatory Capital Ratio, Required | 4.00% | 4.00% |
Regulatory Capital Ratio, Actual | 6.74% | 6.55% |
Federal Home Loan Bank, Capital Stock to Assets, Required | 2.00% | 2.00% |
Federal Home Loan Bank, Capital Stock to Assets, Actual [Line Items] | 4.08% | 3.78% |
Regulatory Capital, Required | $ 3,434 | $ 3,508 |
Regulatory Capital, Actual | $ 5,783 | $ 5,744 |
Leverage Ratio, Required | 5.00% | 5.00% |
Federal Home Loan Bank, Leverage Ratio, Actual | 10.10% | 9.83% |
Leverage Capital, Required | $ 4,293 | $ 4,385 |
Leverage Capital, Actual | $ 8,675 | $ 8,616 |
Pension and Postretirement Be_3
Pension and Postretirement Benefit Plans (Qualified Defined Benefit Multiemployer Plan) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Multiemployer Plans [Line Items] | |||
Entity Tax Identification Number | 42-6000149 | ||
Multiemployer Plan, Pension, Insignificant, Plan Number | 333 | ||
Defined Benefit Plan, Employer Discretionary Contribution Amount | $ 8 | $ 32 | |
Multiemployer Plans, Pension [Member] | |||
Multiemployer Plans [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 9 | $ 34 | $ 2 |
Defined Benefit Plan, Funded Percentage | 129.62% | 108.50% | 108.62% |
Entity Tax Identification Number | 13-5645888 | ||
Federal Home Loan Bank of Des Moines [Member] | Multiemployer Plans, Pension [Member] | |||
Multiemployer Plans [Line Items] | |||
Defined Benefit Plan, Funded Percentage | 144.35% | 99.57% | 102.81% |
Federal Home Loan Bank of Seattle [Member] | Multiemployer Plans, Pension [Member] | |||
Multiemployer Plans [Line Items] | |||
Defined Benefit Plan, Funded Percentage | 139.03% | 99.81% | 103.62% |
Fair Value (Carrying Value and
Fair Value (Carrying Value and Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Estimate of Fair Value Measurement [Member] | ||||
Assets | ||||
Cash and due from banks | $ 295 | $ 978 | ||
Interest-bearing deposits | 416 | 401 | ||
Securities purchased under agreements to resell | 12,450 | 4,800 | ||
Federal funds sold | 4,690 | 3,695 | ||
Trading Securities | 1,169 | 4,875 | ||
Available-for-Sale Securities | 13,389 | 15,910 | ||
Held-to-Maturity Securities, Fair Value | 1,405 | 1,921 | ||
Advances | 44,397 | 47,146 | ||
Mortgage loans held for portfolio, net | 7,775 | 8,518 | ||
Accrued interest receivable | 84 | 97 | ||
Derivative assets, net | 221 | 227 | ||
Other Assets, Fair Value Disclosure | 44 | 39 | ||
Liabilities | ||||
Deposits | (1,847) | (1,908) | ||
Federal Home Loan Bank, Consolidated Obligations Fair Value Disclosure | (77,929) | (80,592) | ||
Financial Instruments Subject to Mandatory Redemption | (29) | (52) | ||
Accrued interest payable | (97) | (145) | ||
Derivative Liability, Net | (3) | (4) | ||
Reported Value Measurement [Member] | ||||
Assets | ||||
Cash and due from banks | 295 | 978 | ||
Interest-bearing deposits | 416 | 401 | ||
Securities purchased under agreements to resell | 12,450 | 4,800 | ||
Federal funds sold | 4,690 | 3,695 | ||
Trading Securities | 1,169 | 4,875 | ||
Available-for-Sale Securities | 13,389 | 15,910 | ||
Held-to-maturity securities | 1,328 | 1,816 | ||
Advances | 44,111 | 46,530 | ||
Mortgage loans held for portfolio, net | 7,578 | 8,242 | ||
Accrued interest receivable | 84 | 97 | ||
Derivative assets, net | 221 | 227 | ||
Other Assets, Fair Value Disclosure | 44 | 39 | ||
Liabilities | ||||
Deposits | (1,847) | (1,908) | ||
Federal Home Loan Bank, Consolidated Obligations Fair Value Disclosure | (77,553) | (79,599) | ||
Financial Instruments Subject to Mandatory Redemption | (29) | (52) | ||
Accrued interest payable | (97) | (145) | ||
Derivative Liability, Net | (3) | (4) | ||
Cash and due from banks | 295 | 978 | ||
Trading Securities | 1,169 | 4,875 | ||
Available-for-Sale Securities | 13,389 | 15,910 | ||
Held-to-maturity securities | 1,328 | 1,816 | ||
Held-to-Maturity Securities, Fair Value | 1,405 | 1,921 | ||
Accrued interest receivable | 84 | 97 | ||
Derivative assets, net | 221 | 227 | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 146 | 168 | ||
Financial Instruments Subject to Mandatory Redemption | (29) | (52) | $ (206) | $ (255) |
Accrued interest payable | (97) | (145) | ||
Derivative Liability, Net | (3) | (4) | ||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 176 | 332 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Assets | ||||
Cash and due from banks | 295 | 978 | ||
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, Fair Value Disclosure | 44 | 39 | ||
Liabilities | ||||
Deposits | 0 | 0 | ||
Federal Home Loan Bank, Consolidated Obligations Fair Value Disclosure | 0 | 0 | ||
Financial Instruments Subject to Mandatory Redemption | (29) | (52) | ||
Accrued interest payable | 0 | 0 | ||
Derivative Liability, Net | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Assets | ||||
Cash and due from banks | 0 | 0 | ||
Interest-bearing deposits | 416 | 401 | ||
Securities purchased under agreements to resell | 12,450 | 4,800 | ||
Federal funds sold | 4,690 | 3,695 | ||
Trading Securities | 1,169 | 4,875 | ||
Available-for-Sale Securities | 13,389 | 15,910 | ||
Held-to-Maturity Securities, Fair Value | 1,400 | 1,915 | ||
Advances | 44,397 | 47,146 | ||
Mortgage loans held for portfolio, net | 7,694 | 8,443 | ||
Accrued interest receivable | 84 | 97 | ||
Derivative assets, net | 75 | 59 | ||
Other Assets, Fair Value Disclosure | 0 | 0 | ||
Liabilities | ||||
Deposits | (1,847) | (1,908) | ||
Federal Home Loan Bank, Consolidated Obligations Fair Value Disclosure | (77,929) | (80,592) | ||
Financial Instruments Subject to Mandatory Redemption | 0 | 0 | ||
Accrued interest payable | (97) | (145) | ||
Derivative Liability, Net | (179) | (336) | ||
Fair Value, Inputs, 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 | 5 | 6 | ||
Advances | 0 | 0 | ||
Mortgage loans held for portfolio, net | 81 | 75 | ||
Accrued interest receivable | 0 | 0 | ||
Derivative assets, net | 0 | 0 | ||
Other Assets, Fair Value Disclosure | 0 | 0 | ||
Liabilities | ||||
Deposits | 0 | 0 | ||
Federal Home Loan Bank, Consolidated Obligations Fair Value Disclosure | 0 | 0 | ||
Financial Instruments Subject to Mandatory Redemption | 0 | 0 | ||
Accrued interest payable | 0 | 0 | ||
Derivative Liability, Net | 0 | 0 | ||
Consolidated Obligation Discount Notes [Member] | Estimate of Fair Value Measurement [Member] | ||||
Liabilities | ||||
Discount notes | (22,348) | (27,346) | ||
Consolidated Obligation Discount Notes [Member] | Reported Value Measurement [Member] | ||||
Liabilities | ||||
Discount notes | (22,348) | (27,345) | ||
Consolidated Obligation Discount Notes [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Liabilities | ||||
Discount notes | 0 | 0 | ||
Consolidated Obligation Discount Notes [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Liabilities | ||||
Discount notes | (22,348) | (27,346) | ||
Consolidated Obligation Discount Notes [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Liabilities | ||||
Discount notes | 0 | 0 | ||
Consolidated Obligation Bonds [Member] | Estimate of Fair Value Measurement [Member] | ||||
Liabilities | ||||
Debt Instrument, Fair Value Disclosure | (55,581) | (53,246) | ||
Consolidated Obligation Bonds [Member] | Reported Value Measurement [Member] | ||||
Liabilities | ||||
Debt Instrument, Fair Value Disclosure | (55,205) | (52,254) | ||
Consolidated Obligation Bonds [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Liabilities | ||||
Debt Instrument, Fair Value Disclosure | 0 | 0 | ||
Consolidated Obligation Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Liabilities | ||||
Debt Instrument, Fair Value Disclosure | (55,581) | (53,246) | ||
Consolidated Obligation Bonds [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Liabilities | ||||
Debt Instrument, Fair Value Disclosure | $ 0 | $ 0 |
Fair Value (Fair Value on a Rec
Fair Value (Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | $ 1,169 | $ 4,875 |
Available-for-Sale Securities | 13,389 | 15,910 |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 146 | 168 |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 176 | 332 |
Derivative assets, net | 221 | 227 |
Derivative Liability | (3) | (4) |
Fair Value, Inputs, 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, Fair Value Disclosure | 44 | 39 |
Derivative Liability | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Consolidated Obligation Discount Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount notes | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 1,169 | 4,875 |
Available-for-Sale Securities | 13,389 | 15,910 |
Derivative assets, net | 75 | 59 |
Other Assets, Fair Value Disclosure | 0 | 0 |
Derivative Liability | (179) | (336) |
Fair Value, Inputs, Level 2 [Member] | Consolidated Obligation Discount Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount notes | (22,348) | (27,346) |
Fair Value, Inputs, 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, Fair Value Disclosure | 0 | 0 |
Derivative Liability | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Consolidated Obligation Discount Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount notes | 0 | 0 |
Fair Value, 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 | 146 | 168 |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 176 | 332 |
Derivative assets, net | 227 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, 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 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 |
Derivative assets, net | 0 | |
Other Assets, Fair Value Disclosure | 44 | 39 |
Assets, Fair Value Disclosure | 44 | 39 |
Derivative Liability | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Consolidated Obligation Discount Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount notes | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 1,169 | 4,875 |
Available-for-Sale Securities | 13,389 | 15,910 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | (22,527) | (336) |
Derivative assets, net | 59 | |
Other Assets, Fair Value Disclosure | 0 | 0 |
Assets, Fair Value Disclosure | 14,633 | 20,844 |
Derivative Liability | (336) | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Consolidated Obligation Discount Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount notes | (22,348) | |
Fair Value, Recurring [Member] | Fair Value, Inputs, 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 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 |
Derivative assets, net | 0 | |
Other Assets, Fair Value Disclosure | 0 | 0 |
Assets, Fair Value Disclosure | 0 | 0 |
Derivative Liability | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Consolidated Obligation Discount Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount notes | 0 | |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 1,169 | 4,875 |
Available-for-Sale Securities | 13,389 | 15,910 |
Derivative assets, net | 221 | 227 |
Other Assets, Fair Value Disclosure | 44 | 39 |
Derivative Liability | (3) | (4) |
Estimate of Fair Value Measurement [Member] | Consolidated Obligation Discount Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount notes | (22,348) | (27,346) |
Estimate of Fair Value Measurement [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 1,169 | 4,875 |
Available-for-Sale Securities | 13,389 | 15,910 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | (22,351) | (4) |
Other Assets, Fair Value Disclosure | 44 | 39 |
Assets, Fair Value Disclosure | 14,823 | 21,051 |
Derivative Liability | (4) | |
Interest Rate Swap [Member] | Fair Value, 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 | 146 | 168 |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 176 | 332 |
Interest Rate Swap [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, net | 0 | 0 |
Derivative Liability | 0 | 0 |
Interest Rate Swap [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, net | 75 | 58 |
Derivative Liability | (179) | (335) |
Interest Rate Swap [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, net | 0 | 0 |
Derivative Liability | 0 | 0 |
Interest Rate Swap [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, net | 221 | 226 |
Derivative Liability | (3) | (3) |
Forward Contracts [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 0 | |
Forward Contracts [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | (1) | |
Forward Contracts [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 0 | |
Forward Contracts [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | (1) | |
Mortgage Receivable [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, net | 0 | |
Mortgage Receivable [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, net | 1 | |
Mortgage Receivable [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, net | 0 | |
Mortgage Receivable [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, net | 1 | |
U.S. Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 102 | 114 |
Available-for-Sale Securities | 1,156 | 1,672 |
U.S. Obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, 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 |
U.S. Obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 102 | 114 |
Available-for-Sale Securities | 1,156 | 1,672 |
U.S. Obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, 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 |
U.S. Obligations [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 102 | 114 |
Available-for-Sale Securities | 1,156 | 1,672 |
GSE Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 60 | 64 |
Available-for-Sale Securities | 983 | 1,022 |
GSE Obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, 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, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 60 | 64 |
Available-for-Sale Securities | 983 | 1,022 |
GSE Obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, 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] | Estimate of Fair Value Measurement [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 60 | 64 |
Available-for-Sale Securities | 983 | 1,022 |
State or Local Housing Agency Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 488 | 693 |
State or Local Housing Agency Obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, 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, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 488 | 693 |
State or Local Housing Agency Obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [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] | Estimate of Fair Value Measurement [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 488 | 693 |
Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 201 | 246 |
Available-for-Sale Securities | 288 | 302 |
Other [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, 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 [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 201 | 246 |
Available-for-Sale Securities | 288 | 302 |
Other [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, 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 |
Other [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 201 | 246 |
Available-for-Sale Securities | 288 | 302 |
U.S. Obligations MBS [Member] | Single Family [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 2,909 | 3,544 |
U.S. Obligations MBS [Member] | Single Family [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 0 | 0 |
U.S. Obligations MBS [Member] | Single Family [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 2,909 | 3,544 |
U.S. Obligations MBS [Member] | Single Family [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 0 | 0 |
U.S. Obligations MBS [Member] | Single Family [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 2,909 | 3,544 |
GSE MBS [Member] | Single Family [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 277 | 446 |
GSE MBS [Member] | Single Family [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 0 | 0 |
GSE MBS [Member] | Single Family [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 277 | 446 |
GSE MBS [Member] | Single Family [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 0 | 0 |
GSE MBS [Member] | Single Family [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 277 | 446 |
GSE MBS [Member] | Multifamily [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 310 | 382 |
Available-for-Sale Securities | 7,288 | 8,231 |
GSE MBS [Member] | Multifamily [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, 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 MBS [Member] | Multifamily [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 310 | 382 |
Available-for-Sale Securities | 7,288 | 8,231 |
GSE MBS [Member] | Multifamily [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, 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 MBS [Member] | Multifamily [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 310 | 382 |
Available-for-Sale Securities | 7,288 | 8,231 |
US Treasury Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 496 | 4,069 |
US Treasury Securities | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 0 | 0 |
US Treasury Securities | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 496 | 4,069 |
US Treasury Securities | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 0 | 0 |
US Treasury Securities | Estimate of Fair Value Measurement [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 496 | 4,069 |
Fair Value Option Election | Consolidated Obligation Discount Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount notes | (22,348) | $ 0 |
Fair Value Option Election | Fair Value, Recurring [Member] | Consolidated Obligation Discount Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount notes | $ (22,348) |
Fair Value (Fair Value on a Non
Fair Value (Fair Value on a Non-Recurring Basis) (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired mortgage loans held for portfolio | $ 81 | $ 75 |
Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired mortgage loans held for portfolio | $ 4 | $ 7 |
Fair Value (Fair Value Option)
Fair Value (Fair Value Option) (Details) - Consolidated Obligation Discount Notes [Member] - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value Option, Principal Balance, Consolidated Obligation Discount Notes | $ 22,355 | |
Fair Value, Option, Aggregate Differences, Consolidated Obligation Discount Notes | (7) | |
Fair Value Option Election | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Discount notes elected under the fair value option | $ 22,348 | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)Institutions | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Loss Contingencies [Line Items] | |||
Obligation with Joint and Several Liability Arrangement, Amount Outstanding | $ 575,500 | $ 667,500 | |
Other liabilities | 354 | 81 | |
FLA Balance For All Master Commitments | 163 | 154 | |
Net Gains on Litigation Settlements | 0 | 120 | $ 0 |
Financial Standby Letter of Credit [Member] | |||
Loss Contingencies [Line Items] | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | 189 | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | $ 308 | ||
Number of Housing Authorities For Which the Bank Has Standby Bond Purchase Agreements | Institutions | 7 | ||
Original Expiration Periods Up To | 7 years | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 497 | 797 | |
Commitments to Fund Advances [Member] | |||
Loss Contingencies [Line Items] | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | 1,726 | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | 2 | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 1,728 | 252 | |
Standby Letters of Credit [Member] | |||
Loss Contingencies [Line Items] | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | 8,117 | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | $ 42 | ||
Guarantor Obligations, Term | 7 years | ||
Other liabilities | $ 2 | 2 | |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 8,159 | 9,361 | |
standby letters of credit issuance commitments [Domain] | |||
Loss Contingencies [Line Items] | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 0 | 0 | |
Mortgage Receivable [Member] | Forward Contracts [Member] | |||
Loss Contingencies [Line Items] | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | 115 | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | 0 | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 115 | $ 177 |
Activities with Stockholders _2
Activities with Stockholders (Transactions with Directors' Financial Institutions) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Advances | $ 44,111 | $ 46,530 |
Loans and Leases Receivable, Net Amount | 7,578 | 8,242 |
Total deposits | 1,847 | 1,908 |
Capital Stock | 3,364 | 3,341 |
Director [Member] | ||
Related Party Transaction [Line Items] | ||
Advances | $ 17 | $ 1,526 |
Advances, Percent | 0.00% | 3.00% |
Loans and Leases Receivable, Net Amount | $ 119 | $ 154 |
Mortgage Loans, Percent | 2.00% | 2.00% |
Total deposits | $ 15 | $ 17 |
Deposits, Percent | 1.00% | 1.00% |
Capital Stock | $ 43 | $ 110 |
Capital Stock, Percent | 1.00% | 3.00% |
Activities with Stockholders (B
Activities with Stockholders (Business Concentrations) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity, Total [Member] | Stockholders' Capital Stock Outstanding Concenetration Risk [Member] | Minimum [Member] | |
Related Party Transaction [Line Items] | |
Business Concentration Percentage | 10.00% |
Activities with Other FHLBank_2
Activities with Other FHLBanks (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Other Transactions [Line Items] | ||||
Payments for FHLBank Advance, Investing Activities | $ 136,486 | $ 146,824 | $ 264,580 | |
Loans to Other Federal Home Loan Banks | 0 | 0 | $ 0 | |
Payments for Federal Home Loan Bank Loans | 255 | 1,265 | ||
Proceeds from Federal Home Loan Bank Loans | (255) | (1,265) | ||
Federal Home Loan Bank of Topeka [Member] | ||||
Schedule of Other Transactions [Line Items] | ||||
Loans to Other Federal Home Loan Banks | 0 | 0 | ||
Payments for Federal Home Loan Bank Loans | 150 | |||
Proceeds from Federal Home Loan Bank Loans | (150) | |||
Federal Home Loan Bank of Atlanta [Member] | ||||
Schedule of Other Transactions [Line Items] | ||||
Loans to Other Federal Home Loan Banks | 0 | 0 | ||
Payments for Federal Home Loan Bank Loans | 565 | |||
Proceeds from Federal Home Loan Bank Loans | (565) | |||
Loans from Other Federal Home Loan Banks | 0 | 500 | ||
Proceeds from FHLBank Borrowings, Financing Activities | 400 | |||
Payments of FHLBank Borrowings, Financing Activities | (900) | |||
Federal Home Loan Bank of Indianapolis [Member] | ||||
Schedule of Other Transactions [Line Items] | ||||
Loans to Other Federal Home Loan Banks | 0 | $ 0 | ||
Payments for Federal Home Loan Bank Loans | 550 | |||
Proceeds from Federal Home Loan Bank Loans | (550) | |||
Federal Home Loan Bank of Boston [Member] | ||||
Schedule of Other Transactions [Line Items] | ||||
Loans to Other Federal Home Loan Banks | 0 | 0 | ||
Payments for Federal Home Loan Bank Loans | 250 | |||
Proceeds from Federal Home Loan Bank Loans | (250) | |||
Federal Home Loan Bank of Pittsburgh | ||||
Schedule of Other Transactions [Line Items] | ||||
Loans to Other Federal Home Loan Banks | 0 | 0 | ||
Payments for Federal Home Loan Bank Loans | 5 | |||
Proceeds from Federal Home Loan Bank Loans | (5) | |||
Loans from Other Federal Home Loan Banks | 0 | $ 0 | ||
Proceeds from FHLBank Borrowings, Financing Activities | 5 | |||
Payments of FHLBank Borrowings, Financing Activities | (5) | |||
Federal Home Loan Bank of Chicago [Member] | ||||
Schedule of Other Transactions [Line Items] | ||||
Loans to Other Federal Home Loan Banks | 0 | 0 | ||
Payments for Federal Home Loan Bank Loans | 301 | |||
Proceeds from Federal Home Loan Bank Loans | (301) | |||
Loans from Other Federal Home Loan Banks | 0 | $ 0 | ||
Proceeds from FHLBank Borrowings, Financing Activities | 5 | |||
Payments of FHLBank Borrowings, Financing Activities | $ (5) |