Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 13, 2020 | Jun. 28, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Federal Home Loan Bank of Topeka | ||
Entity Central Index Key | 0001325878 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 0 | ||
Class A [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 4,524,494 | ||
Class B [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 13,099,122 |
Statements Of Condition
Statements Of Condition - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
ASSETS | |||
Cash and due from banks (Note 3) | $ 1,917,166 | $ 15,060 | |
Interest-bearing deposits | 921,453 | 670,660 | |
Securities purchased under agreements to resell (Note 12) | 4,750,000 | 1,251,096 | |
Federal funds sold | 850,000 | 50,000 | |
Investment securities: | |||
Trading securities (Note 4) | 2,812,562 | 2,151,113 | |
Available-for-sale securities (Note 4) | 7,182,500 | 1,725,640 | |
Held-to-maturity securities1 (Note 4) | [1] | 3,569,958 | 4,456,873 |
Total investment securities | 13,565,020 | 8,333,626 | |
Advances (Notes 5, 7, 18) | 30,241,315 | 28,730,113 | |
Mortgage loans held for portfolio, net of allowance for credit losses of $985 and $812 (Notes 6, 7, 18) | 10,633,009 | 8,410,462 | |
Accrued interest receivable | 143,765 | 109,366 | |
Derivative assets, net (Notes 8, 12) | 154,804 | 36,095 | |
Other assets (Note 17) | 100,122 | 108,778 | |
TOTAL ASSETS | 63,276,654 | 47,715,256 | |
LIABILITIES | |||
Deposits (Notes 9, 18) | 790,640 | 473,820 | |
Consolidated obligations, net: | |||
Discount notes (Notes 10, 17) | 27,447,911 | 20,608,332 | |
Bonds (Notes 10, 17) | 32,013,314 | 23,966,394 | |
Total consolidated obligations, net | 59,461,225 | 44,574,726 | |
Mandatorily redeemable capital stock (Note 13) | 2,415 | 3,597 | |
Accrued interest payable | 117,580 | 87,903 | |
Affordable Housing Program payable (Note 11) | 43,027 | 43,081 | |
Derivative liabilities, net (Notes 8, 12) | 202 | 7,884 | |
Other liabilities (Notes 15, 17) | 70,514 | 69,993 | |
TOTAL LIABILITIES | 60,485,603 | 45,261,004 | |
Commitments and contingencies (Note 17) | |||
Capital stock outstanding - putable: | |||
Total capital stock (Note 11) | [2] | 1,766,456 | 1,524,537 |
Retained earnings: | |||
Unrestricted | 765,295 | 716,555 | |
Restricted (Note 13) | 234,514 | 197,467 | |
Total retained earnings | 999,809 | 914,022 | |
Accumulated other comprehensive income (loss) (Note 14) | 24,786 | 15,693 | |
TOTAL CAPITAL | 2,791,051 | 2,454,252 | |
TOTAL LIABILITIES AND CAPITAL | 63,276,654 | 47,715,256 | |
Class A [Member] | |||
Capital stock outstanding - putable: | |||
Total capital stock (Note 11) | [2] | 447,610 | 247,361 |
Class B [Member] | |||
Capital stock outstanding - putable: | |||
Total capital stock (Note 11) | [2] | $ 1,318,846 | $ 1,277,176 |
[1] | Fair value: $3,556,938 and $4,447,078 as of December 31, 2019 and December 31, 2018, respectively. | ||
[2] | Putable |
Statements Of Condition (Parent
Statements Of Condition (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
ASSETS | |||
Allowance for Credit Losses on Mortgage Loans | $ 985 | $ 812 | |
Investment securities: | |||
Held-to-maturity, Fair Value | $ 3,556,938 | $ 4,447,078 | |
Capital stock outstanding - putable: | |||
Common Stock, par value per share | $ 100 | ||
Class A [Member] | |||
Capital stock outstanding - putable: | |||
Common Stock, par value per share | [1] | $ 100 | $ 100 |
Common Stock, Shares, Issued | [1] | 4,476 | 2,473 |
Common Stock, Shares Outstanding | [1] | 4,476 | 2,473 |
Class B [Member] | |||
Capital stock outstanding - putable: | |||
Common Stock, par value per share | [1] | $ 100 | $ 100 |
Common Stock, Shares, Issued | [1] | 13,188 | 12,772 |
Common Stock, Shares Outstanding | [1] | 13,188 | 12,772 |
[1] | Putable |
Statements Of Income
Statements Of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
INTEREST INCOME: | |||
Interest-bearing deposits | $ 19,801 | $ 14,957 | $ 4,204 |
Securities purchased under agreements to resell | 104,397 | 71,298 | 23,937 |
Federal funds sold | 32,834 | 40,306 | 27,994 |
Trading securities (Note 4) | 87,534 | 72,659 | 60,048 |
Available-for-sale securities (Note 4) | 116,866 | 46,154 | 24,364 |
Held-to-maturity securities (Note 4) | 105,099 | 116,189 | 73,692 |
Advances (Note 5) | 716,199 | 637,203 | 402,071 |
Mortgage loans held for portfolio (Note 6) | 304,582 | 256,698 | 214,388 |
Other | 1,440 | 1,545 | 1,280 |
Total interest income | 1,488,752 | 1,257,009 | 831,978 |
INTEREST EXPENSE: | |||
Deposits (Note 9) | 9,820 | 8,912 | 3,371 |
Consolidated obligations: | |||
Discount notes (Note 10) | 532,155 | 451,380 | 237,019 |
Bonds (Note 10) | 689,275 | 524,255 | 320,895 |
Mandatorily redeemable capital stock (Note 13) | 139 | 229 | 195 |
Other | 1,299 | 1,036 | 490 |
Total interest expense | 1,232,688 | 985,812 | 561,970 |
NET INTEREST INCOME | 256,064 | 271,197 | 270,008 |
Provision (reversal) for credit losses on mortgage loans (Note 7) | 387 | 27 | (186) |
NET INTEREST INCOME AFTER LOAN LOSS PROVISION (REVERSAL) | 255,677 | 271,170 | 270,194 |
OTHER INCOME (LOSS): | |||
Net gains (losses) on trading securities (Note 4) | 70,261 | (21,910) | 6,914 |
Net gains (losses) on sale of held-to-maturity securities (Note 4) | (46) | 1,591 | 0 |
Net gains (losses) on derivatives and hedging activities (Note 8) | (57,623) | (3,191) | (1,245) |
Standby bond purchase agreement commitment fees | 2,283 | 2,864 | 4,492 |
Letters of credit fees | 4,832 | 4,384 | 3,820 |
Other | 3,266 | 3,415 | 2,006 |
Total other income (loss) | 22,973 | (12,847) | 15,987 |
OTHER EXPENSES: | |||
Compensation and benefits (Note 15) | 37,848 | 37,673 | 37,889 |
Other operating (Note 17) | 19,519 | 18,729 | 17,019 |
Federal Housing Finance Agency | 3,460 | 2,956 | 2,909 |
Office of Finance | 3,700 | 3,207 | 3,052 |
Other | 8,289 | 6,543 | 6,167 |
Total other expenses | 72,816 | 69,108 | 67,036 |
INCOME BEFORE ASSESSMENTS | 205,834 | 189,215 | 219,145 |
Affordable Housing Program (Note 11) | 20,597 | 18,944 | 21,934 |
NET INCOME | $ 185,237 | $ 170,271 | $ 197,211 |
Statements Of Comprehensive Inc
Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net income | $ 185,237 | $ 170,271 | $ 197,211 |
Other comprehensive income (loss): | |||
Net unrealized gains (losses) on available-for-sale securities | 7,720 | (12,138) | 21,861 |
Net non-credit portion of other-than-temporary impairment losses on held-to-maturity securities | 0 | 4,163 | 1,678 |
Defined benefit pension plan | 1,373 | (1,990) | 1,542 |
Total other comprehensive income (loss) | 9,093 | (9,965) | 25,081 |
TOTAL COMPREHENSIVE INCOME | $ 194,330 | $ 160,306 | $ 222,292 |
Statements Of Capital
Statements Of Capital - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at the beginning of the period | $ 2,454,252 | $ 2,506,103 | $ 1,962,448 | |
Comprehensive income | 194,330 | 160,306 | 222,292 | |
Proceeds from issuance of capital stock | 1,405,720 | 1,655,247 | 1,817,323 | |
Repurchase/redemption of capital stock | (979,139) | (826,689) | (715,714) | |
Net reclassification of shares to mandatorily redeemable capital stock | (283,831) | (1,040,316) | (779,979) | |
Net transfer of shares between Class A and Class B | 0 | 0 | 0 | |
Dividends on capital stock | ||||
Cash payment | (281) | (399) | (267) | |
Stock issued | 0 | 0 | 0 | |
Balance at the end of the period | $ 2,791,051 | $ 2,454,252 | $ 2,506,103 | |
Capital Stock [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares, beginning balance | [1] | 15,245 | 16,400 | 12,266 |
Balance at the beginning of the period | [1] | $ 1,524,537 | $ 1,640,039 | $ 1,226,675 |
Proceeds from issuance of capital stock, shares | [1] | 14,057 | 16,553 | 18,173 |
Proceeds from issuance of capital stock | [1] | $ 1,405,720 | $ 1,655,247 | $ 1,817,323 |
Repurchase/redemption of capital stock, shares | [1] | (9,791) | (8,267) | (7,157) |
Repurchase/redemption of capital stock | [1] | $ (979,139) | $ (826,689) | $ (715,714) |
Net reclassification of shares to mandatorily redeemable capital stock, shares | [1] | (2,839) | (10,404) | (7,799) |
Net reclassification of shares to mandatorily redeemable capital stock | [1] | $ (283,831) | $ (1,040,316) | $ (779,979) |
Net transfer of shares between Class A and Class B, shares | [1] | 0 | 0 | 0 |
Net transfer of shares between Class A and Class B | [1] | $ 0 | $ 0 | $ 0 |
Dividends on capital stock | ||||
Stock issued, shares | [1] | 992 | 963 | 917 |
Stock issued | [1] | $ 99,169 | $ 96,256 | $ 91,734 |
Shares, ending balance | [1] | 17,664 | 15,245 | 16,400 |
Balance at the end of the period | [1] | $ 1,766,456 | $ 1,524,537 | $ 1,640,039 |
Total Retained Earnings [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at the beginning of the period | 914,022 | 840,406 | 735,196 | |
Comprehensive income | 185,237 | 170,271 | 197,211 | |
Dividends on capital stock | ||||
Cash payment | (281) | (399) | (267) | |
Stock issued | (99,169) | (96,256) | (91,734) | |
Balance at the end of the period | 999,809 | 914,022 | 840,406 | |
Unrestricted Retained Earnings [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at the beginning of the period | 716,555 | 676,993 | 611,226 | |
Comprehensive income | 148,190 | 136,217 | 157,768 | |
Dividends on capital stock | ||||
Cash payment | (281) | (399) | (267) | |
Stock issued | (99,169) | (96,256) | (91,734) | |
Balance at the end of the period | 765,295 | 716,555 | 676,993 | |
Restricted Retained Earnings [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at the beginning of the period | 197,467 | 163,413 | 123,970 | |
Comprehensive income | 37,047 | 34,054 | 39,443 | |
Dividends on capital stock | ||||
Balance at the end of the period | 234,514 | 197,467 | 163,413 | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at the beginning of the period | 15,693 | 25,658 | 577 | |
Comprehensive income | 9,093 | (9,965) | 25,081 | |
Dividends on capital stock | ||||
Balance at the end of the period | $ 24,786 | $ 15,693 | $ 25,658 | |
Class A [Member] | Capital Stock [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares, beginning balance | [1] | 2,473 | 2,351 | 1,621 |
Balance at the beginning of the period | [1] | $ 247,361 | $ 235,134 | $ 162,143 |
Proceeds from issuance of capital stock, shares | [1] | 18 | 16 | 19 |
Proceeds from issuance of capital stock | [1] | $ 1,804 | $ 1,541 | $ 1,882 |
Repurchase/redemption of capital stock, shares | [1] | (7,130) | (8,176) | (7,137) |
Repurchase/redemption of capital stock | [1] | $ (713,027) | $ (817,568) | $ (713,680) |
Net reclassification of shares to mandatorily redeemable capital stock, shares | [1] | (1,387) | (2,045) | (1,396) |
Net reclassification of shares to mandatorily redeemable capital stock | [1] | $ (138,681) | $ (204,456) | $ (139,632) |
Net transfer of shares between Class A and Class B, shares | [1] | 10,502 | 10,327 | 9,244 |
Net transfer of shares between Class A and Class B | [1] | $ 1,050,153 | $ 1,032,710 | $ 924,421 |
Dividends on capital stock | ||||
Shares, ending balance | [1] | 4,476 | 2,473 | 2,351 |
Balance at the end of the period | [1] | $ 447,610 | $ 247,361 | $ 235,134 |
Class B [Member] | Capital Stock [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares, beginning balance | [1] | 12,772 | 14,049 | 10,645 |
Balance at the beginning of the period | [1] | $ 1,277,176 | $ 1,404,905 | $ 1,064,532 |
Proceeds from issuance of capital stock, shares | [1] | 14,039 | 16,537 | 18,154 |
Proceeds from issuance of capital stock | [1] | $ 1,403,916 | $ 1,653,706 | $ 1,815,441 |
Repurchase/redemption of capital stock, shares | [1] | (2,661) | (91) | (20) |
Repurchase/redemption of capital stock | [1] | $ (266,112) | $ (9,121) | $ (2,034) |
Net reclassification of shares to mandatorily redeemable capital stock, shares | [1] | (1,452) | (8,359) | (6,403) |
Net reclassification of shares to mandatorily redeemable capital stock | [1] | $ (145,150) | $ (835,860) | $ (640,347) |
Net transfer of shares between Class A and Class B, shares | [1] | (10,502) | (10,327) | (9,244) |
Net transfer of shares between Class A and Class B | [1] | $ (1,050,153) | $ (1,032,710) | $ (924,421) |
Dividends on capital stock | ||||
Stock issued, shares | [1] | 992 | 963 | 917 |
Stock issued | [1] | $ 99,169 | $ 96,256 | $ 91,734 |
Shares, ending balance | [1] | 13,188 | 12,772 | 14,049 |
Balance at the end of the period | [1] | $ 1,318,846 | $ 1,277,176 | $ 1,404,905 |
[1] | Putable |
Statements Of Capital (Parenthe
Statements Of Capital (Parenthetical) - Capital Stock [Member] | 12 Months Ended | ||
Dec. 31, 2019Rate | Dec. 31, 2018Rate | Dec. 31, 2017Rate | |
Class A [Member] | |||
Stock dividend rate percentage | 2.40% | 1.80% | 1.10% |
Class B [Member] | |||
Stock dividend rate percentage | 7.50% | 7.00% | 6.50% |
Statements Of Cash Flows
Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 185,237 | $ 170,271 | $ 197,211 |
Adjustments to reconcile income (loss) to net cash provided by (used in) operating activities: | |||
Premiums and discounts on consolidated obligations, net | (10,559) | 2,467 | 9,475 |
Concessions on consolidated obligations | 12,376 | 5,448 | 5,406 |
Premiums and discounts on investments, net | 10,567 | 3,644 | 3,869 |
Premiums, discounts and commitment fees on advances, net | (1,606) | (4,698) | (6,002) |
Premiums, discounts and deferred loan costs on mortgage loans, net | 29,566 | 18,116 | 21,626 |
Fair value adjustments on hedged assets or liabilities | 3,385 | 1,453 | 4,464 |
Premises, software and equipment | 3,127 | 2,975 | 2,282 |
Other | 334 | 399 | 657 |
Provision (reversal) for credit losses on mortgage loans | 387 | 27 | (186) |
Non-cash interest on mandatorily redeemable capital stock | 137 | 227 | 193 |
Net realized (gains) losses on sale of held-to-maturity securities | 46 | (1,591) | 0 |
Net other-than-temporary impairment losses on held-to-maturity securities | 0 | 26 | 468 |
Net realized (gains) losses on sale of premises and equipment | (2) | (880) | 82 |
Other adjustments | (188) | (382) | (212) |
Net (gains) losses on trading securities | (70,261) | 21,910 | (6,914) |
Net change in derivatives and hedging activities | (107,537) | 13,961 | 16,670 |
(Increase) decrease in accrued interest receivable | (34,587) | (23,913) | (17,175) |
Change in net accrued interest included in derivative assets | (1,247) | (6,616) | (131) |
(Increase) decrease in other assets | 3,135 | 590 | (3,200) |
Increase (decrease) in accrued interest payable | 29,475 | 31,949 | 6,341 |
Change in net accrued interest included in derivative liabilities | 4,700 | (4,272) | (1,944) |
Increase (decrease) in Affordable Housing Program liability | (54) | 76 | 9,763 |
Increase (decrease) in other liabilities | 933 | (2,388) | (284) |
Total adjustments | (127,873) | 58,528 | 45,248 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 57,364 | 228,799 | 242,459 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Net (increase) decrease in interest-bearing deposits | (428,403) | (227,101) | (8,879) |
Net (increase) decrease in securities purchased under resale agreements | (3,498,904) | 1,910,350 | (761,446) |
Net (increase) decrease in Federal funds sold | (800,000) | 1,125,000 | 1,550,000 |
Proceeds from sale of trading securities | 19,184 | 0 | 0 |
Proceeds from maturities of and principal repayments on trading securities | 3,269,002 | 4,179,361 | 2,000,288 |
Purchases of trading securities | (3,879,375) | (3,482,969) | (2,360,000) |
Proceeds from maturities of and principal repayments on available-for-sale securities | 11,846 | 18,793 | 6,027 |
Purchases of available-for-sale securities | (5,329,326) | (281,489) | (399,437) |
Proceeds from sale of held-to-maturity securities | 9,442 | 87,827 | 0 |
Proceeds from maturities of and principal repayments on held-to-maturity securities | 875,027 | 942,637 | 1,099,083 |
Purchases of held-to-maturity securities | 0 | (625,170) | (1,483,101) |
Advances repaid | 322,056,867 | 392,375,489 | 522,851,282 |
Advances originated | (323,451,173) | (394,828,014) | (525,215,855) |
Principal collected on mortgage loans | 1,676,691 | 922,423 | 947,143 |
Purchases of mortgage loans | (3,927,543) | (2,070,971) | (1,616,044) |
Proceeds from sale of foreclosed assets | 2,378 | 5,038 | 2,455 |
Purchases of other long-term assets | 0 | (6,000) | (29,000) |
Other investing activities | 3,120 | 2,884 | 2,538 |
Net (increase) decrease in loans to other FHLBanks | 0 | 0 | 600,000 |
Proceeds from sale of premises, software and equipment | 0 | 2,416 | 48 |
Purchases of premises, software and equipment | (1,576) | (9,282) | (30,119) |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (13,392,743) | 41,222 | (2,845,017) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net increase (decrease) in deposits | 239,562 | 48,856 | (107,106) |
Net proceeds from issuance of consolidated obligations: | |||
Discount notes | 818,115,910 | 1,036,653,023 | 937,784,053 |
Bonds | 24,700,487 | 10,832,505 | 18,002,624 |
Payments for maturing and retired consolidated obligations: | |||
Discount notes | (811,278,050) | (1,036,479,071) | (939,161,380) |
Bonds | (16,686,500) | (11,368,440) | (14,191,615) |
Net increase (decrease) in other borrowings | 0 | 6,000 | 29,000 |
Proceeds from financing derivatives | 3,329 | 0 | 3,227 |
Net interest payments received (paid) for financing derivatives | 1,597 | (1,785) | (19,261) |
Proceeds from issuance of capital stock | 1,405,720 | 1,655,247 | 1,817,323 |
Payments for repurchase/redemption of capital stock | (979,139) | (826,689) | (715,714) |
Payments for repurchase of mandatorily redeemable capital stock | (285,150) | (1,042,258) | (777,530) |
Cash dividends paid | (281) | (399) | (267) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 15,237,485 | (523,011) | 2,663,354 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,902,106 | (252,990) | 60,796 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 15,060 | 268,050 | 207,254 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 1,917,166 | 15,060 | 268,050 |
Supplemental disclosures: | |||
Interest paid | 1,202,135 | 948,392 | 535,268 |
Affordable Housing Program payments | 20,973 | 19,027 | 12,752 |
Net transfers of mortgage loans to other assets | $ 771 | $ 3,768 | $ 2,218 |
Background Information (Notes)
Background Information (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | BACKGROUND INFORMATION The Federal Home Loan Bank of Topeka (FHLBank or FHLBank Topeka), a federally chartered corporation, is one of 11 district Federal Home Loan Banks (FHLBanks). The FHLBanks are government-sponsored enterprises (GSE) that were organized under the Federal Home Loan Bank Act of 1932, as amended (Bank Act), to serve the public by enhancing the availability of credit for residential mortgages and targeted community development and provide a readily available, competitively-priced source of funds to their members. The FHLBank is a cooperative whose member institutions own substantially all of the outstanding capital stock of the FHLBank and generally receive dividends on their stock investments. Regulated financial depositories, insurance companies and community development financial institutions engaged in residential housing finance whose principal place of business is located in Colorado, Kansas, Nebraska or Oklahoma are eligible to apply for membership. State and local housing authorities that meet certain statutory requirements may become housing associates of the FHLBank and also be eligible to borrow from the FHLBank. While eligible to borrow, housing associates are not members of the FHLBank and therefore are not permitted or required to hold capital stock. All members are required to purchase stock in the FHLBank located in their district in accordance with the capital plan of that particular FHLBank. Under FHLBank Topeka’s capital plan, members must own capital stock in the FHLBank based on the amount of their total assets. Each member is also required to purchase activity-based capital stock as it engages in certain business activities with the FHLBank, including advances. Former members that still have outstanding business transactions with the FHLBank are also required to maintain their investments in FHLBank capital stock until the transactions mature or are paid off. As a result of these requirements, the FHLBank conducts business with members in the ordinary course of its business. For financial reporting purposes, the FHLBank defines related parties as those members: (1) with investments in excess of 10 percent of the FHLBank’s total regulatory capital stock outstanding, which includes mandatorily redeemable capital stock; or (2) with an officer or director serving on the FHLBank’s board of directors. See Note 18 for more information on related party transactions. The FHLBanks are supervised and regulated by the Federal Housing Finance Agency (FHFA), an independent agency in the executive branch of the U.S. government. The FHFA’s stated mission is to ensure that the housing GSEs operate in a safe and sound manner so that they serve as a reliable source of liquidity and funding for housing finance and community investment. Each FHLBank is operated as a separate entity and has its own management, employees and board of directors. The FHLBanks do not have any special purpose entities or any other type of off-balance sheet conduits. The FHLBanks have established a joint office called the Office of Finance to facilitate the issuance and servicing of the debt instruments of the FHLBanks, known as consolidated obligation bonds and consolidated obligation discount notes (collectively referred to as consolidated obligations) and to prepare the combined quarterly and annual financial reports of the FHLBanks. As provided by the Bank Act and applicable regulations, consolidated obligations are backed only by the financial resources of the FHLBanks. Consolidated obligations are the primary source of funds for the FHLBanks in addition to deposits, other borrowings and capital stock issued to members. The FHLBank primarily uses these funds to provide advances to members and to acquire mortgage loans from members through the Mortgage Partnership Finance ® (MPF ® ) Program. "Mortgage Partnership Finance" and "MPF" are registered trademarks of the FHLBank of Chicago. In addition, the FHLBank also offers correspondent services such as wire transfer, security safekeeping and settlement services. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation: The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Reclassifications : Presentation of cash flow amounts in the prior period have been reclassified to reflect short-term trading securities purchases and proceeds on a gross, rather than net, basis. Certain other immaterial amounts in the financial statements have been reclassified to conform to current period presentations. Use of Estimates : The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions as of the date of the financial statements in determining the reported amounts of assets, liabilities and estimated fair values and in determining the disclosure of any contingent assets or liabilities. Estimates and assumptions by management also affect the reported amounts of income and expense during the reporting period. The most significant of these estimates include the fair value of trading and available-for-sale securities and the fair value of derivatives. Many of the estimates and assumptions, including those used in financial models, are based on financial market conditions as of the date of the financial statements. Because of the volatility of the financial markets, as well as other factors that affect management estimates, actual results may vary from these estimates. Fair Values: The fair value amounts, recorded on the Statements of Condition and presented in the note disclosures for the periods presented, have been determined by the FHLBank using available market and other pertinent information and reflect the FHLBank’s best judgment of appropriate valuation methods. Although the FHLBank uses its best judgment in estimating the fair value of these 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 16 for more information. Financial Instruments Meeting Netting Requirements: The FHLBank presents certain financial instruments, including derivatives, repurchase agreements and securities purchased under agreements to resell, on a net basis when it has a legal right of offset and all other requirements for netting are met (collectively referred to as the netting requirements). For these financial instruments, the FHLBank has elected to offset its asset and liability positions, as well as cash collateral received or pledged, when it has met the netting requirements. The net exposure for these financial instruments can change on a daily basis; 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 netting requirements, any excess cash collateral received or pledged is recognized as a derivative liability or derivative asset. See Notes 8 and 12 for additional information. Cash Flows: For purposes of the Statements of Cash Flows, the FHLBank considers cash on hand and non-interest-bearing deposits in banks as cash and cash equivalents. Interest-bearing Deposits, Securities Purchased Under Agreements to Resell and Federal Funds Sold: Interest-bearing deposits, securities purchased under agreements to resell and Federal funds sold provide short-term liquidity and are carried at cost. The FHLBank treats securities purchased under agreements to resell as short-term collateralized loans, which are classified as assets on the Statements of Condition. If the fair value of the underlying securities decreases below the fair value required as collateral, the counterparty has the option to: (1) place an equivalent amount of additional securities in safekeeping in the FHLBank’s name; or (2) remit an equivalent amount of cash; otherwise, the dollar value of the resale agreement will be decreased accordingly. Federal funds sold consist of short-term unsecured loans generally transacted with counterparties that are considered by the FHLBank to be of investment quality. Investment Securities: The FHLBank classifies investments as trading, available-for-sale and held-to-maturity at the date of acquisition. Purchases and sales of securities are recorded on a trade date basis. Trading: Securities classified as trading are either: (1) held for liquidity purposes; (2) economically swapped and classified as trading to provide a fair value offset to the gains (losses) on the interest rate swaps tied to the securities; or (3) acquired as asset/liability management tools and carried at fair value. The FHLBank records changes in the fair value of these securities through other income (loss) as net gains (losses) on trading securities. FHFA regulation and the FHLBank’s Risk Management Policy (RMP) prohibit trading in or the speculative use of these instruments and limits credit risk arising from these instruments. While the FHLBank classifies certain securities as trading for financial reporting purposes, it does not actively trade any of these securities with the intent of realizing gains and holds these investments indefinitely as management periodically evaluates its asset/liability and liquidity needs. Short-term money market investments with maturities of three months or less are acquired and classified as trading securities primarily for liquidity purposes. These short-term money market investments are periodically sold to meet the FHLBank’s cash flow needs. The FHLBank might also sell mortgage-backed securities (MBS) held in its trading portfolio to reduce its London Interbank Offered Rate (LIBOR) exposure. Available-for-Sale: Securities that are not classified as trading or held-to-maturity are classified as available-for-sale and are carried at fair value. The change in fair value of available-for-sale securities is recorded in other comprehensive income (loss) (OCI) as net unrealized gains (losses) on available-for-sale securities. Beginning January 1, 2019, the FHLBank adopted new hedge accounting guidance, which, among other things, impacts the presentation of gains (losses) on derivatives and hedging activities for qualifying hedges, including fair value hedges of available-for-sale securities. For available-for-sale securities in hedge relationships that qualify as fair value hedges, the FHLBank records the portion of the change in the fair value of the investment related to the risk being hedged in available-for-sale interest income together with the related change in the fair value of the derivative, and records the remainder of the change in the fair value of the investment in OCI as net unrealized gains (losses) on available-for-sale securities. Prior to January 1, 2019, for available-for-sale securities in hedge relationships that qualified as fair value hedges, the FHLBank recorded the portion of the change in the fair value of the investment related to the risk being hedged in non-interest income as net gains (losses) on derivatives and hedging activities together with the related change in the fair value of the derivative, and recorded the remainder of the change in the fair value of the investment in OCI as net unrealized gains (losses) on available-for-sale securities. Held-to-Maturity: Securities that the FHLBank has both the ability and intent to hold to maturity are classified as held-to-maturity and are carried at cost, adjusted for periodic principal repayments, amortization of premiums, and accretion of discounts. Certain changes in circumstances may cause the FHLBank 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, including: (1) evidence of a significant deterioration in the issuer’s creditworthiness; (2) a change in statutory or regulatory requirements significantly modifying either what constitutes a permissible investment or the maximum level of investments in certain kinds of investments, thereby causing the FHLBank to dispose of a held-to-maturity investment; (3) a significant increase by a regulator in the FHLBank’s capital requirements that causes the FHLBank to downsize by selling held-to-maturity investments; or (4) a significant increase in the risk weights of debt securities used for regulatory risk-based capital purposes. The FHLBank considers the following situations to be a maturity for purposes of assessing ability and intent to hold to maturity: ▪ The sale of the security is near enough to maturity (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 ▪ The sale of a security occurs after the FHLBank has already collected a substantial portion (at least 85 percent) of the principal outstanding at acquisition either due to prepayments on the debt security or to scheduled payments on a debt security payable in equal installments (both principal and interest) over its term. Premiums and Discounts: The FHLBank computes the amortization of purchased premiums and accretion of purchased discounts on MBS using the level-yield method over the estimated cash flows of the securities. This method requires a retrospective adjustment of the effective yield each time the FHLBank receives a principal repayment or changes the estimated remaining cash flows as if the actual principal repayments and new estimated cash flows had been known since the original acquisition dates of the securities. The FHLBank computes the amortization of premiums and accretion of discounts on other investments using the level-yield method to the contractual maturities of the securities. Gains and Losses on Sales: Gains and losses on the sales of investment securities are computed using the specific identification method and are included in other income (loss). Advances: The FHLBank presents advances (secured loans to members, former members or housing associates) net of unearned commitment fees, premiums, discounts and fair value basis adjustments. The FHLBank amortizes the premiums and accretes the discounts on advances to interest income using the level-yield method. The FHLBank records interest on advances to interest income as earned. Advance Modifications: In cases in which the FHLBank funds a new advance concurrently with or within a short period of time before or after the prepayment of an existing advance, the FHLBank 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 FHLBank 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 10 percent difference in the cash flows or if the FHLBank concludes the differences between the advances are more than minor based on qualitative factors, the advance is accounted for as a new advance. In all other instances, the new advance is accounted for as a modification. Prepayment Fees: The FHLBank charges a borrower a prepayment fee when the borrower prepays certain advances before the original maturity. The FHLBank records prepayment fees net of basis adjustments related to hedging activities included in the carrying value of the advance as advance interest income in the Statements of Income. If a new advance does not qualify as a modification of an existing advance, the existing advance is treated as an advance termination and any prepayment fee, net of hedging adjustments, is recorded to advance interest income in the Statements of Income. If a new advance qualifies as a modification of an existing advance, any prepayment fee, net of hedging adjustments, is deferred, recorded in the basis of the modified advance, and amortized using a level-yield methodology over the life of the modified advance to advance interest income. If the modified advance is hedged and meets hedge accounting requirements, the modified advance is marked to benchmark or full fair value, depending on the risk being hedged, and subsequent fair value changes that are attributable to the hedged risk are recorded in advance interest income effective January 1, 2019. Prior to January 1, 2019, subsequent fair value changes were recorded in non-interest income as net gains (losses) on derivatives and hedging activities. Mortgage Loans Held for Portfolio: The FHLBank carries mortgage loans classified as held for investment at their principal amount outstanding, net of unamortized premiums, unaccreted discounts, deferred loan fees associated with table funded loans, hedging adjustments, unrealized gains and losses from mortgage purchase commitments, charge-offs, and other fees. The FHLBank has the intent and ability to hold these mortgage loans to maturity. Premiums and Discounts: The FHLBank defers and amortizes/accretes mortgage loan origination fees (agent fees) and premiums and discounts paid to and received from participating financial institutions (PFI) as interest income using the level-yield method over the contractual lives of the loans. This method uses the cash flows required by the loan contracts, as adjusted for actual prepayments, to apply the interest method. The contractual method does not utilize estimates of future prepayments of principal. Credit Enhancement Fees: The credit enhancement obligation (CE obligation) is an obligation on the part of the PFI that ensures the retention of credit risk on loans it originates on behalf of or sells to the FHLBank. The amount of the CE obligation is determined at the time of purchase so that any losses in excess of the CE obligation for each pool of mortgage loans purchased approximate those experienced by an investor in either a double-A or triple-B rated MBS. As a part of the methodology used to determine the amount of credit enhancement necessary, the FHLBank analyzes the risk characteristics of each mortgage loan using a model licensed from a Nationally Recognized Statistical Rating Organization (NRSRO). The FHLBank uses the model to evaluate loan data provided by the PFI as well as other relevant information. The FHLBank pays the PFI a credit enhancement fee (CE fee) for managing this portion of the credit risk in the pool of loans. CE fees are paid monthly based on the remaining unpaid principal balance (UPB) of the loans in a master commitment, or a one-time upfront CE fee is paid at purchase. The upfront CE fee is based upon the present value of the monthly CE fee payments, with consideration for expected prepayments, and amortized as interest income using the level-yield method over the contractual lives of the loans. The required CE obligation amount may vary depending on the various product alternatives selected by the PFI. CE fees are recorded as an offset to mortgage loan interest income. To the extent the FHLBank experiences a loss in a master commitment, the FHLBank may be able to recapture future performance-based CE fees paid to the PFIs to offset these losses. Other Fees: The FHLBank may receive other non-origination fees, such as delivery commitment extension fees and pair-off fees as part of the mark-to-market on derivatives to which they are related or as part of the loan basis, as applicable. Delivery commitment extension fees are received when a PFI requires an extension of the delivery commitment period beyond the original stated expiration. These fees compensate the FHLBank for lost interest as a result of late funding and represent the member purchasing a derivative from the FHLBank. Pair-off fees are received from the PFI when the amount funded is more than or less than a specific percentage range of the delivery commitment amount. These fees compensate the FHLBank for hedge costs associated with the under-delivery or over-delivery. To the extent that pair off fees relate to under-deliveries of loans, they are included in the mark-to-market of the related delivery commitment derivative. If they relate to over-deliveries, they represent purchase price adjustments to the related loans acquired and are recorded as a part of the carrying value of the loan. Allowance for Credit Losses: An allowance for credit losses is a valuation allowance separately established for each identified portfolio segment, if necessary, to provide for probable losses inherent in the FHLBank’s portfolios as of the Statement of Condition date. A mortgage loan is considered impaired when, based on current information and events, it is probable that the FHLBank will be unable to collect all amounts due according to the contractual terms of the mortgage loan agreement. To the extent necessary, an allowance for credit losses for off-balance sheet credit exposures is recorded as a liability. See Note 7 for details on each allowance methodology. Portfolio Segments: A portfolio segment is defined as the level at which an entity develops and documents a systematic methodology for determining its allowance for credit losses. The FHLBank has developed and documented a systematic methodology for determining an allowance for credit losses, where applicable, for: (1) credit products (advances, letters of credit and other extensions of credit to members); (2) government-guaranteed or -insured mortgage loans held for portfolio; (3) conventional mortgage loans held for portfolio; (4) the direct financing lease receivable; (5) term Federal funds sold; and (6) term securities purchased under agreements to resell. Classes of Financing Receivables: Classes of financing receivables generally are a disaggregation of a portfolio segment to the extent that it is needed to understand the exposure to credit risk arising from these financing receivables. The FHLBank has determined that no further disaggregation of portfolio segments identified previously is needed as the credit risk arising from these financing receivables is assessed and measured at the portfolio segment level. Non-accrual Loans: The FHLBank places a conventional mortgage loan on non-accrual status if it is determined that either: (1) the collection of interest or principal is doubtful; or (2) interest or principal is past due for 90 days or more, except when the loan is well-secured (e.g., through credit enhancements) and in the process of collection. The FHLBank does not place government-guaranteed or -insured mortgage loans on non-accrual status due to 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. For those mortgage loans placed on non-accrual status, accrued but uncollected interest is reversed against interest income. The FHLBank records cash payments received on non-accrual loans first as interest income and then as a reduction of principal as specified in the contractual agreement, unless the collection of the remaining principal amount due is considered doubtful. If the collection of the remaining principal amount due is considered doubtful then cash payments received would be applied first solely to principal until the remaining principal amount due is expected to be collected and then as a recovery of any charge-off, if applicable, followed by recording interest income. A loan on non-accrual status may be restored to accrual status when: (1) none of its contractual principal and interest is due and unpaid, and the FHLBank expects repayment of the remaining contractual principal and interest; or (2) it otherwise becomes well secured and in the process of collection. Troubled Debt Restructuring: The FHLBank considers a troubled debt restructuring 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. Loans that are discharged in Chapter 7 bankruptcy and have not been reaffirmed by the borrowers are also considered to be troubled debt restructurings, except in certain cases where supplemental mortgage insurance (SMI) policies are held or where all contractual amounts due are still expected to be collected as a result of certain credit enhancements or government guarantees. Collateral-dependent Loans: An impaired loan is considered collateral dependent if repayment is expected to be provided solely by sale of the underlying property; that is, there is no other available and reliable source of repayment. A loan that is considered collateral-dependent is measured for impairment based on the fair value of the underlying property less estimated selling costs, with any shortfall recognized as an allowance for loan loss or charged off. Interest income on impaired loans is recognized in the same manner as non-accrual loans. Charge-off Policy: A charge-off is recorded if it is estimated that the recorded investment in a loan will not be recovered. The FHLBank 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 notification of a claim against any of the credit enhancements. The FHLBank charges off the portion of outstanding conventional mortgage loan balances in excess of fair value of the underlying property, less estimated cost to sell, for loans that are 180 days or more delinquent and certain loans for which the borrower has filed for bankruptcy. Real Estate Owned: Real estate owned (REO) includes assets that have been received in satisfaction of debt through foreclosures. REO is initially recorded at fair value less estimated selling costs and is subsequently carried at the lower of that amount or current fair value less estimated selling costs. The FHLBank recognizes a charge-off to the allowance for credit losses if the fair value of the REO less estimated selling costs is less than the recorded investment in the loan at the date of transfer from loans to REO. Any subsequent gains, losses and carrying costs are included in other expense in the Statements of Income. REO is recorded in other assets on the Statements of Condition. Derivatives: All derivatives are recognized on the Statements of Condition at their fair values and are reported as either derivative assets or derivative liabilities, net of cash collateral, and accrued interest receivable from or pledged by clearing agents and/or counterparties. The fair values of derivatives are netted by clearing agent or counterparty when the netting requirements have been met. If these netted amounts are positive, they are classified as an asset and, if negative, they are classified as a liability. Cash flows associated with derivatives are reflected as cash flows from operating activities in the Statements of Cash Flows unless the derivative meets the criteria to be a financing derivative. The FHLBank utilizes two Derivative Clearing Organizations (Clearinghouses) for all cleared derivative transactions, LCH Ltd and CME Clearing. At both Clearinghouses, variation margin is characterized as daily settlement payments and initial margin is considered cash collateral. Derivative Designations: Each derivative is designated as one of the following: ▪ a qualifying fair value hedge of the change in fair value of: (1) a recognized asset or liability, or (2) an unrecognized firm commitment; or ▪ a non-qualifying hedge of an asset or liability (an economic hedge) for asset/liability management purposes. Accounting for Qualifying Hedges: If hedging relationships meet certain criteria, including, but not limited to, formal documentation of the hedging relationship and an expectation to be highly effective, they qualify for hedge accounting. Two approaches to hedge accounting include: ▪ Long haul hedge accounting - The application of long haul hedge accounting requires the FHLBank to 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 attributable to the hedged risk and whether those derivatives may be expected to remain highly effective in future periods; and ▪ Shortcut hedge accounting - Interest rate swap transactions that meet more stringent criteria qualify for the shortcut method of hedge accounting in which an assumption can be made that the change in fair value of a hedged item, due to changes in the benchmark rate, exactly offsets the change in fair value of the related derivative. Under the shortcut method, the entire change in fair value of the interest rate swap is considered to be highly effective at achieving offsetting changes in fair values of the hedged asset or liability. Derivatives are typically executed at the same time as the hedged item, and the FHLBank designates the hedged item in a qualifying hedge relationship at the trade date. In many hedging relationships, the FHLBank may designate the 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 FHLBank defines market settlement conventions for advances and consolidated obligation discount notes to be five business days or less and for consolidated obligation bonds to be thirty calendar days or less, using a next business day convention. The FHLBank then records the changes in fair value of the derivative and the hedged item beginning on the trade date. Beginning January 1, 2019, the FHLBank adopted new hedge accounting guidance, which, among other things, impacts the presentation of gains (losses) on derivatives and hedging activities for qualifying hedges. 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 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. Net gains (losses) on derivatives and hedging activities for qualifying hedges recorded in net interest income include unrealized and realized gains (losses), which include net interest settlements. Prior to January 1, 2019, fair value hedge ineffectiveness (which represented the amount by which the change in the fair value of the derivative differed from the change in the fair value of the hedged item) was recorded in non-interest income as net gains (losses) on derivatives and hedging activities. Accounting for Non-Qualifying Hedges: An economic hedge is defined as a derivative hedging underlying assets, liabilities or firm commitments that does not qualify for hedge accounting or where management did not elect hedge accounting treatment at inception but is an acceptable hedging strategy under the FHLBank’s RMP. These economic hedging strategies also comply with FHFA regulatory requirements prohibiting speculative derivative transactions. An economic hedge introduces the potential for earnings variability caused by changes in fair value on the derivatives that are recorded in the FHLBank’s income but not offset by corresponding changes in the fair value of the economically hedged assets, liabilities or firm commitments being recorded simultaneously in income. As a result, the FHLBank recognizes only the net interest and the change in fair value of these derivatives in other income (loss) as net gains (losses) on derivatives and hedging activities with no offsetting fair value adjustments for the assets, liabilities or firm commitments. Accrued Interest Receivables and Payables: The net settlements of interest receivables and payables on derivatives designated as fair value hedges are recognized as adjustments to the interest income or expense of the designated underlying investment securities, advances, consolidated obligations or other financial instruments, thereby affecting the reported amount of net interest income on the Statements of Income. The net settlements of interest receivables and payables on economic hedges are recognized in other income (loss) as net gains (losses) on derivatives and hedging activities. Discontinuance of Hedge Accounting: The FHLBank discontinues hedge accounting prospectively when: (1) it determines that the derivative is no longer effective in offsetting changes in the fair value of a hedged item attributable to the hedged risk (including hedged items such as firm commitments); (2) the derivative and/or the hedged item expires or is sold, terminated or exercised; (3) a hedged firm commitment no longer meets the definition of a firm commitment; or (4) management determines that designating the derivative as a hedging instrument is no longer appropriate. When hedge accounting is discontinued because the FHLBank determines that the derivative no longer qualifies as an effective fair value hedge of an existing hedged item, the FHLBank continues to carry the derivative on its Statements of Condition at fair value, ceases to adjust the hedged asset or liability for changes in fair value, and begins amortizing the cumulative basis adjustment on the hedged item into earnings over the remaining life of the hedged item using the level-yield method. When hedge accounting is discontinued and the derivative remains outstanding, the FHLBank carries the derivative at fair value on its Statements of Condition, recognizing changes in the fair value of the derivative in other income (loss) as net gains (losses) on derivatives and hedging activities. When hedge accounting is discontinued because the hedged item no longer meets the definition of a firm commitment, the FHLBank continues to carry the derivative on its Statements of Condition at fair value, removing any asset or liability that was recorded to recognize the firm commitment and recording it as a gain or loss in current period earnings. Embedded Derivatives: The FHLBank may issue debt, make advances, or purchase financial instruments in which a derivative instrument is embedded. Upon execution of these transactions, the FHLBank assesses whether the economic characteristics of the embedded derivative are clearly and closely related to the economic characteristics of the remaining component of the advance, debt 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. When the FHLBank determines that: (1) the embedded derivative has economic characteristics that are not clearly and closely related to the economic characteristics of the host contract; and (2) 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 a stand-alone derivative instrument pursuant to an economic hedge. However, if the entire contract (the host contract and the embedded derivative) is to be measured at fair value, with changes in fair value reported in current period earnings (such as an investment security classified as trading), or if the FHLBank cannot reliably identify and measure the embedded derivative for purposes of separating that derivative from its host contract, the entire contract is carried on the Statements of Condition at fair value and no portion of the contract is designated as a hedging instrument. Premises, Software and Equipment: Premises, software, and equipment are included in other assets on the Statements of Condition. The FHLBank records premises, software, and equipment at cost less accumulated depreciation and amortization. Depreciation is computed on the straight-line method over the estimated useful lives of the assets ranging from 3 to 40 years . Leasehold improvements are amortized on the straight-line basis over the shorter of the estimated useful life of the improvement or the remaining term of the lease. Improvements and major renewals are capitalized, and ordinary maintenance and repairs are expensed as incurred. The cost of purchased software and certain costs incurred in developing computer softwa |
Recently Issued Accounting Stan
Recently Issued Accounting Standards And Interpretations And Changes In And Adoptions Of Accounting Principles | 12 Months Ended |
Dec. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Standards And Interpretations And Changes In And Adoptions Of Accounting Principles | RECENTLY ISSUED ACCOUNTING STANDARDS AND INTERPRETATIONS AND CHANGES IN AND ADOPTIONS OF ACCOUNTING PRINCIPLES Facilitation of the Effects of Reference Rate Reform on Financial Reporting . In March 2020, the Financial Accounting Standards Board (FASB) issued temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying GAAP to transactions affected by reference rate reform if certain criteria are met. The transactions primarily include: (1) contract modifications; (2) hedging relationships; and (3) sale or transfer of debt securities classified as held-to-maturity. This guidance is effective immediately for the FHLBank, and the amendments may be applied prospectively through December 31, 2022. The FHLBank is in the process of evaluating the guidance, and its effect on the FHLBank's financial condition, results of operations and cash flows has not yet been determined. Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes (Accounting Standards Update (ASU) 2018-16) . In October 2018, the FASB issued an amendment that permits use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815 in addition to the U.S. Treasury rate, the LIBOR swap rate, the OIS rate based on the Fed Funds Effective Rate, and the Securities Industry and Financial Markets Association Municipal Swap Rate. The amendments apply to all entities that elect to apply hedge accounting of the benchmark interest rate. The amendments were adopted on a prospective basis for qualifying new or redesignated hedging relationships entered into on or after the date of adoption. The amendment was effective concurrently with ASU 2017-12 (see below) beginning January 1, 2019. The adoption of this guidance did not materially impact the FHLBank's application of hedge accounting or utilization of hedging strategies. Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (ASU 2018-15). In August 2018, the FASB issued an amendment to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Accordingly, the amendments in this ASU require an entity in a hosting arrangement that is a service contract to follow existing guidance relating to internal-use software to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. Costs to develop or obtain internal-use software that cannot be capitalized also cannot be capitalized for a hosting arrangement that is a service contract. Therefore, an entity in a hosting arrangement that is a service contract determines to which project stage (that is, preliminary project stage, application development stage, or post-implementation stage) an implementation activity relates. Costs for implementation activities in the application development stage are capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post-implementation stages are expensed as the activities are performed. The amendments in this ASU also require the entity to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. The amendments in this ASU were effective January 1, 2020 for the FHLBank. The adoption of this guidance did not materially impact on the FHLBank's financial condition, results of operations or cash flows. Changes to the Disclosure Requirements for Defined Benefit Plans (ASU 2018-14). In August 2018, the FASB issued an amendment modifying the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans to improve disclosure effectiveness. The amendments in the ASU remove disclosures that are no longer considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. The amendments in this ASU are effective for annual periods ending after December 15, 2020, which is the year ending December 31, 2020 for the FHLBank, and will be applied retrospectively for all comparative periods presented. Early adoption is permitted. The FHLBank does not plan on early adoption. The adoption of this guidance will not have a material impact on the disclosures related to defined benefit plans and will not impact the FHLBank’s financial condition, results of operations or cash flows. Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13). In August 2018, the FASB issued an amendment that modifies the disclosure requirements for fair value measurements. This ASU removes the requirement to disclose: (1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; (2) the policy for timing of transfers between levels; and (3) the valuation processes for Level 3 fair value measurements. The ASU requires disclosure of changes in unrealized gains and losses for the period included in OCI for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments in this ASU were effective January 1, 2020 for the FHLBank. The adoption of this guidance will not have a material impact on the disclosures related to fair value measurements and did not impact the FHLBank’s financial condition, results of operations or cash flows. Targeted Improvements to Accounting for Hedging Activities, as amended (ASU 2017-12) . In August 2017, the FASB issued an amendment to simplify the application of hedge accounting guidance in current GAAP and to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. This guidance requires that, for fair value hedges, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness be presented in the same income statement line that is used to present the earnings effect of the hedged item. In addition, the amendments include certain targeted improvements to the assessment of hedge effectiveness and permit, among other things, the following: • Measurement of the change in fair value of the hedged item on the basis of the benchmark rate component of the contractual coupon cash flows determined at hedge inception; • Measurement of the hedged item in a partial-term fair value hedge of interest rate risk by assuming the hedged item has a term that reflects only the designated cash flows being hedged; • Consideration only of how changes in the benchmark interest rate affect a decision to settle a prepayable instrument before its scheduled maturity in calculating the change in the fair value of the hedged item attributable to interest rate risk; • For a cash flow hedge of interest rate risk of a variable rate financial instrument, an entity can designate the variability in cash flows attributable to the contractually specified interest rate as the hedged risk; and • If an entity that applies the shortcut method determines that use of that method was not or is no longer appropriate, the entity may apply a long-haul method for assessing hedge effectiveness as long as the hedge is highly effective and the entity documents at inception, or at the adoption date for existing shortcut hedging relationships, which long-haul methodology it will use. The amendment became effective January 1, 2019 for the FHLBank. The guidance did not impact the FHLBank's application of hedge accounting for existing hedge strategies. For all short-cut hedge accounting trades, the FHLBank updated existing documentation to designate a long-haul method to be utilized in the event a hedge ceases to qualify for the short-cut method. The guidance also provided opportunities to enhance risk management through new hedge strategies, including partial term hedges. The adoption of this guidance did not have a material impact on the FHLBank's financial condition, results of operations or cash flows beyond a prospective change in income statement presentation for fair value hedge relationships and new required disclosures. Premium Amortization on Purchased Callable Debt Securities (ASU 2017-08). In March 2017, the FASB issued an amendment to shorten the amortization period of any premium on callable debt securities to the first call date instead of over the contractual life of the instrument. The amendment does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The guidance is intended to reduce diversity in practice in the amortization of premiums and the consideration of how the potential of a security being called is factored into current impairment assessments. The amendment also intends to more closely align the amortization of premiums and discounts to the expectations incorporated into the market pricing of the instrument. The amendment became effective January 1, 2019 for the FHLBank. The adoption of this guidance did not have an impact on the FHLBank's financial condition, results of operations or cash flows. Measurement of Credit Losses on Financial Instruments, as amended (ASU 2016-13). In June 2016, the FASB issued amended guidance for the accounting of credit losses on financial instruments. The amendments require entities to measure expected credit losses based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. Additionally, under the new guidance, a financial asset, or a group of financial assets, measured at amortized cost basis is required to be presented at the net amount expected to be collected. The guidance also requires: • The statement of income to reflect the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period; • The entities to determine the allowance for credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination that are measured at amortized cost basis in a similar manner to other financial assets measured at amortized cost basis. The initial allowance for credit losses is required to be added to the purchase price; • Credit losses relating to available-for-sale debt securities to be recorded through an allowance for credit losses. The amendments limit the allowance for credit losses to the amount by which fair value is below amortized cost; and • Public entities to further disaggregate the current disclosure of credit quality indicators in relation to the amortized cost of financing receivables by the year of origination (i.e., vintage). The guidance became effective for the FHLBank on January 1, 2020 and was applied using a modified-retrospective approach, through a cumulative-effect adjustment to retained earnings. Adoption of this guidance did not have a material impact on the FHLBank’s financial condition, results of operations, or cash flows. Leases (ASU 2016-02). In February 2016, FASB issued amendments to lease accounting guidance. Under the new guidance, lessees are required to recognize a lease liability and a right-of-use asset for all leases in the statement of financial condition, which effectively removes a source of off-balance sheet financing for operating leases. A distinction remains between finance leases and operating leases, but the assets and liabilities arising from operating leases are now also required to be recognized in the statement of financial condition. Lessor accounting is largely unchanged. The amendments became effective January 1, 2019 for the FHLBank. The adoption of this guidance did not have a material impact on the FHLBank's financial condition, results of operations or cash flows. |
Cash and Due from Banks
Cash and Due from Banks | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Due From Banks | CASH AND DUE FROM BANKS Cash and due from banks represents non-interest-bearing deposits in banks. Pass-through Deposit Reserves : The FHLBank acts as a pass-through correspondent for members required to deposit reserves with the Federal Reserve Banks (FRB). The amount shown as cash and due from banks includes pass-through reserves deposited with the FRB of $3,820,000 and $2,044,000 as of December 31, 2019 and 2018 , respectively. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES The FHLBank's investment securities include the following major security types, which are based on the issuer and the risk characteristics of the security: ▪ U.S. Treasury obligations - sovereign debt of the United States; ▪ GSE obligations - debentures issued by other FHLBanks, Federal National Mortgage Association (Fannie Mae), Federal Farm Credit Bank and Federal Agricultural Mortgage Corporation. GSE securities are not guaranteed by the U.S. government; ▪ State or local housing agency obligations - municipal bonds issued by housing finance agencies; ▪ U.S. obligation MBS - single-family MBS issued by Government National Mortgage Association (Ginnie Mae), which are guaranteed by the U.S. government; and ▪ GSE MBS - single-family and multi-family MBS issued by Fannie Mae and Federal Home Loan Mortgage Corporation (Freddie Mac). Trading Securities: Trading securities by major security type as of December 31, 2019 and 2018 are summarized in Table 4.1 (in thousands): Table 4.1 Fair Value 12/31/2019 12/31/2018 Non-mortgage-backed securities: U.S. Treasury obligations $ 1,530,518 $ 252,377 GSE obligations 416,025 1,000,495 Non-mortgage-backed securities 1,946,543 1,252,872 Mortgage-backed securities: U.S. obligation MBS — 467 GSE MBS 866,019 897,774 Mortgage-backed securities 866,019 898,241 TOTAL $ 2,812,562 $ 2,151,113 Net gains (losses) on trading securities during the years ended December 31, 2019, 2018, and 2017 are shown in Table 4.2 (in thousands): Table 4.2 2019 2018 2017 Net gains (losses) on trading securities held as of December 31, 2019 $ 69,865 $ (19,186 ) $ 10,657 Net gains (losses) on trading securities sold or matured prior to December 31, 2019 396 (2,724 ) (3,743 ) NET GAINS (LOSSES) ON TRADING SECURITIES $ 70,261 $ (21,910 ) $ 6,914 Available-for-sale Securities: Available-for-sale securities by major security type as of December 31, 2019 are summarized in Table 4.3 (in thousands): Table 4.3 12/31/2019 Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Non-mortgage-backed securities: U.S. Treasury obligations $ 4,258,608 $ 3,580 $ (397 ) $ 4,261,791 Non-mortgage-backed securities 4,258,608 3,580 (397 ) 4,261,791 Mortgage-backed securities: GSE MBS 2,897,104 28,353 (4,748 ) 2,920,709 Mortgage-backed securities 2,897,104 28,353 (4,748 ) 2,920,709 TOTAL $ 7,155,712 $ 31,933 $ (5,145 ) $ 7,182,500 Available-for-sale securities by major security type as of December 31, 2018 are summarized in Table 4.4 (in thousands): Table 4.4 12/31/2018 Amortized Gross Gross Fair Value Mortgage-backed securities: GSE MBS $ 1,706,572 $ 25,815 $ (6,747 ) $ 1,725,640 TOTAL $ 1,706,572 $ 25,815 $ (6,747 ) $ 1,725,640 Table 4.5 summarizes the available-for-sale securities with unrealized losses as of December 31, 2019 (in thousands). The unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position. Table 4.5 12/31/2019 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Non-mortgage-backed securities: U.S. Treasury obligations $ 1,579,004 $ (397 ) $ — $ — $ 1,579,004 $ (397 ) Non-mortgage-backed securities 1,579,004 (397 ) — — 1,579,004 (397 ) Mortgage-backed securities: GSE MBS 787,809 (932 ) 301,161 (3,816 ) 1,088,970 (4,748 ) Mortgage-backed securities 787,809 (932 ) 301,161 (3,816 ) 1,088,970 (4,748 ) TOTAL TEMPORARILY IMPAIRED SECURITIES $ 2,366,813 $ (1,329 ) $ 301,161 $ (3,816 ) $ 2,667,974 $ (5,145 ) Table 4.6 summarizes the available-for-sale securities with unrealized losses as of December 31, 2018 (in thousands). The unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position. Table 4.6 12/31/2018 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities: GSE MBS $ 570,042 $ (6,747 ) $ — $ — $ 570,042 $ (6,747 ) TOTAL TEMPORARILY IMPAIRED SECURITIES $ 570,042 $ (6,747 ) $ — $ — $ 570,042 $ (6,747 ) The amortized cost and fair values of available-for-sale securities by contractual maturity as of December 31, 2019 and 2018 are shown in Table 4.7 (in thousands). Expected maturities of MBS will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees. Table 4.7 12/31/2019 12/31/2018 Amortized Cost Fair Value Amortized Cost Fair Value Non-mortgage-backed securities: Due in one year or less $ 754,003 $ 753,891 $ — $ — Due after one year through five years 3,504,605 3,507,900 — — Due after five years through ten years — — — — Due after ten years — — — — Non-mortgage-backed securities 4,258,608 4,261,791 — — Mortgage-backed securities 2,897,104 2,920,709 1,706,572 1,725,640 TOTAL $ 7,155,712 $ 7,182,500 $ 1,706,572 $ 1,725,640 Held-to-maturity Securities: Held-to-maturity securities by major security type as of December 31, 2019 are summarized in Table 4.8 (in thousands): Table 4.8 12/31/2019 Amortized Cost Carrying Value Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Non-mortgage-backed securities: State or local housing agency obligations $ 82,805 $ 82,805 $ 5 $ (1,956 ) $ 80,854 Non-mortgage-backed securities 82,805 82,805 5 (1,956 ) 80,854 Mortgage-backed securities: U.S. obligation MBS 93,375 93,375 — (496 ) 92,879 GSE MBS 3,393,778 3,393,778 6,558 (17,131 ) 3,383,205 Mortgage-backed securities 3,487,153 3,487,153 6,558 (17,627 ) 3,476,084 TOTAL $ 3,569,958 $ 3,569,958 $ 6,563 $ (19,583 ) $ 3,556,938 Held-to-maturity securities by major security type as of December 31, 2018 are summarized in Table 4.9 (in thousands): Table 4.9 12/31/2018 Amortized Cost Carrying Value Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Non-mortgage-backed securities: State or local housing agency obligations $ 86,430 $ 86,430 $ 1 $ (3,480 ) $ 82,951 Non-mortgage-backed securities 86,430 86,430 1 (3,480 ) 82,951 Mortgage-backed securities: U.S. obligation MBS 109,866 109,866 125 (99 ) 109,892 GSE MBS 4,260,577 4,260,577 12,164 (18,506 ) 4,254,235 Mortgage-backed securities 4,370,443 4,370,443 12,289 (18,605 ) 4,364,127 TOTAL $ 4,456,873 $ 4,456,873 $ 12,290 $ (22,085 ) $ 4,447,078 Table 4.10 summarizes the held-to-maturity securities with unrealized losses as of December 31, 2019 (in thousands). The unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position. Table 4.10 12/31/2019 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Non-mortgage-backed securities: State or local housing agency obligations $ — $ — $ 28,044 $ (1,956 ) $ 28,044 $ (1,956 ) Non-mortgage-backed securities — — 28,044 (1,956 ) 28,044 (1,956 ) Mortgage-backed securities: U.S. obligation MBS 68,433 (293 ) 24,446 (203 ) 92,879 (496 ) GSE MBS 383,910 (1,457 ) 2,422,598 (15,674 ) 2,806,508 (17,131 ) Mortgage-backed securities 452,343 (1,750 ) 2,447,044 (15,877 ) 2,899,387 (17,627 ) TOTAL TEMPORARILY IMPAIRED SECURITIES $ 452,343 $ (1,750 ) $ 2,475,088 $ (17,833 ) $ 2,927,431 $ (19,583 ) Table 4.11 summarizes the held-to-maturity securities with unrealized losses as of December 31, 2018 (in thousands). The unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position. Table 4.11 12/31/2018 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Non-mortgage-backed securities: State or local housing agency obligations $ — $ — $ 26,520 $ (3,480 ) $ 26,520 $ (3,480 ) Non-mortgage-backed securities — — 26,520 (3,480 ) 26,520 (3,480 ) Mortgage-backed securities: U.S. obligation MBS — — 30,702 (99 ) 30,702 (99 ) GSE MBS 1,655,048 (4,769 ) 1,567,728 (13,737 ) 3,222,776 (18,506 ) Mortgage-backed securities 1,655,048 (4,769 ) 1,598,430 (13,836 ) 3,253,478 (18,605 ) TOTAL TEMPORARILY IMPAIRED SECURITIES $ 1,655,048 $ (4,769 ) $ 1,624,950 $ (17,316 ) $ 3,279,998 $ (22,085 ) The amortized cost, carrying value and fair values of held-to-maturity securities by contractual maturity as of December 31, 2019 and 2018 are shown in Table 4.12 (in thousands). Expected maturities of certain securities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees. Table 4.12 12/31/2019 12/31/2018 Amortized Cost Carrying Value Fair Value Amortized Cost Carrying Value Fair Value Non-mortgage-backed securities: Due in one year or less $ — $ — $ — $ — $ — $ — Due after one year through five years — — — — — — Due after five years through ten years — — — — — — Due after ten years 82,805 82,805 80,854 86,430 86,430 82,951 Non-mortgage-backed securities 82,805 82,805 80,854 86,430 86,430 82,951 Mortgage-backed securities 3,487,153 3,487,153 3,476,084 4,370,443 4,370,443 4,364,127 TOTAL $ 3,569,958 $ 3,569,958 $ 3,556,938 $ 4,456,873 $ 4,456,873 $ 4,447,078 Net gains (losses) were realized on the sale of held-to-maturity securities as presented below and are recorded as net gains (losses) on sale of held-to-maturity securities in other income (loss) on the Statements of Income. All securities sold had paid down below 15 percent of the principal outstanding at acquisition and were therefore considered maturities under GAAP. Table 4.13 presents details of the sales (in thousands). No held-to-maturity securities were sold during the year ended December 31, 2017. Table 4.13 2019 2018 Proceeds from sale of held-to-maturity securities $ 9,442 $ 87,827 Carrying value of held-to-maturity securities sold (9,488 ) (86,236 ) NET REALIZED GAINS (LOSSES) $ (46 ) $ 1,591 Other-than-temporary Impairment: As of December 31, 2019 , the fair value of a portion of the FHLBank's available-for-sale and held-to-maturity securities were below the amortized cost of the securities. However, the decline in fair value of these securities is considered temporary and not attributable to credit quality as the FHLBank expects to recover the amortized cost basis on the remaining securities in unrecognized loss positions and neither intends to sell these securities nor is it more likely than not that the FHLBank will be required to sell these securities before its anticipated recovery of the remaining amortized cost basis. The FHLBank determined that all of the gross unrealized losses were temporary because the strength of the underlying collateral and credit enhancements was sufficient to protect the FHLBank from losses based on current expectations. |
Advances
Advances | 12 Months Ended |
Dec. 31, 2019 | |
Advances [Abstract] | |
Advances | ADVANCES General Terms: The FHLBank offers a wide range of fixed and variable rate advance products with different maturities, interest rates, payment characteristics and optionality. As of December 31, 2019 and 2018, the FHLBank had advances outstanding at interest rates ranging from 0.96 percent to 7.41 percent and 0.88 percent to 7.41 percent, respectively. Table 5.1 presents advances summarized by redemption term as of December 31, 2019 and 2018 (dollar amounts in thousands): Table 5.1 12/31/2019 12/31/2018 Redemption Term Amount Weighted Average Interest Rate Amount Weighted Average Interest Rate Due in one year or less $ 13,188,118 1.88 % $ 14,844,804 2.60 % Due after one year through two years 10,448,433 1.96 1,482,844 2.40 Due after two years through three years 1,254,153 2.27 1,442,333 2.53 Due after three years through four years 1,067,662 2.42 7,496,058 2.66 Due after four years through five years 1,208,854 2.22 816,702 2.68 Thereafter 3,004,835 2.25 2,695,008 2.58 Total par value 30,172,055 1.99 % 28,777,749 2.60 % Discounts (1,807 ) (3,413 ) Hedging adjustments 71,067 (44,223 ) TOTAL $ 30,241,315 $ 28,730,113 The FHLBank’s advances outstanding include advances that contain call options that may be exercised with or without prepayment fees at the borrower’s discretion on specific dates (call dates) before the stated advance maturities (callable advances). In exchange for receiving the right to call the advance on a predetermined call schedule, the borrower may pay a higher fixed rate for the advance relative to an equivalent maturity, non-callable, fixed rate advance. The borrower normally exercises its call options on these advances when interest rates decline (fixed rate advances) or spreads change (adjustable rate advances). Convertible advances allow the FHLBank to convert an advance from one interest payment term structure to another. When issuing convertible advances, the FHLBank purchases put options from a member that allow the FHLBank to convert the fixed rate advance to a variable rate advance at the current market rate or another structure after an agreed-upon lockout period. A convertible advance carries a lower interest rate than a comparable-maturity fixed rate advance without the conversion feature. Table 5.2 presents advances summarized by redemption term or next call date (for callable advances) and by redemption term or next conversion date (for convertible advances) as of December 31, 2019 and 2018 (in thousands): Table 5.2 Redemption Term or Next Call Date Redemption Term or Next Conversion Date Redemption Term 12/31/2019 12/31/2018 12/31/2019 12/31/2018 Due in one year or less $ 24,271,238 $ 23,343,939 $ 14,053,068 $ 15,133,204 Due after one year through two years 1,133,077 1,271,660 10,637,833 1,683,644 Due after two years through three years 728,429 1,021,189 1,524,153 1,629,233 Due after three years through four years 764,990 555,901 1,215,412 7,752,058 Due after four years through five years 686,594 598,282 1,304,254 954,452 Thereafter 2,587,727 1,986,778 1,437,335 1,625,158 TOTAL PAR VALUE $ 30,172,055 $ 28,777,749 $ 30,172,055 $ 28,777,749 Interest Rate Payment Terms : Table 5.3 details additional interest rate payment terms for advances as of December 31, 2019 and 2018 (in thousands): Table 5.3 Redemption Term 12/31/2019 12/31/2018 Fixed rate: Due in one year or less $ 2,691,528 $ 1,635,464 Due after one year 5,912,124 5,455,193 Total fixed rate 8,603,652 7,090,657 Variable rate: Due in one year or less 10,496,590 13,209,340 Due after one year 11,071,813 8,477,752 Total variable rate 21,568,403 21,687,092 TOTAL PAR VALUE $ 30,172,055 $ 28,777,749 Credit Risk Exposure and Security Terms: The FHLBank’s potential credit risk from advances is concentrated in commercial banks and savings institutions . As of December 31, 2019 and 2018 , the FHLBank had outstanding advances of $13,085,000,000 and $12,660,000,000 , respectively, to two members that individually held 10 percent or more of the FHLBank’s advances , which represents 43.4 percent and 44.0 percent , respectively, of total outstanding advances. The members were the same each year. See Note 7 for information related to the FHLBank’s credit risk on advances and allowance for credit losses. See Note 16 for information about the fair value of advances. See Note 18 for detailed information on transactions with related parties. |
Mortgage Loans
Mortgage Loans | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Mortgage Loans | MORTGAGE LOANS The MPF Program involves the FHLBank investing in mortgage loans, which have been funded by the FHLBank through or purchased from PFIs. These mortgage loans are government-guaranteed or -insured loans (by the Federal Housing Administration, the Department of Veterans Affairs, the Rural Housing Service of the Department of Agriculture and/or the Department of Housing and Urban Development) and conventional residential loans credit-enhanced by PFIs. Depending upon a member’s product selection, the servicing rights can be retained or sold by the PFI. The FHLBank does not buy or own any mortgage servicing rights. Mortgage Loans Held for Portfolio: Table 6.1 presents information as of December 31, 2019 and 2018 on mortgage loans held for portfolio (in thousands): Table 6.1 12/31/2019 12/31/2018 Real estate: Fixed rate, medium-term 1 , single-family mortgages $ 1,347,385 $ 1,179,087 Fixed rate, long-term, single-family mortgages 9,128,268 7,111,856 Total unpaid principal balance 10,475,653 8,290,943 Premiums 155,793 120,548 Discounts (2,503 ) (2,936 ) Deferred loan costs, net 184 223 Other deferred fees (38 ) (50 ) Hedging adjustments 4,905 2,546 Total before Allowance for Credit Losses on Mortgage Loans 10,633,994 8,411,274 Allowance for Credit Losses on Mortgage Loans (985 ) (812 ) MORTGAGE LOANS HELD FOR PORTFOLIO, NET $ 10,633,009 $ 8,410,462 1 Medium-term defined as a term of 15 years or less at origination. Table 6.2 presents information as of December 31, 2019 and 2018 on the outstanding UPB of mortgage loans held for portfolio (in thousands): Table 6.2 12/31/2019 12/31/2018 Conventional loans $ 9,849,542 $ 7,619,498 Government-guaranteed or -insured loans 626,111 671,445 TOTAL UNPAID PRINCIPAL BALANCE $ 10,475,653 $ 8,290,943 See Note 7 for information related to the FHLBank’s credit risk on mortgage loans and allowance for credit losses. See Note 16 for information about the fair value of mortgage loans held for portfolio. See Note 18 for detailed information on transactions with related parties. |
Allowance For Credit Losses
Allowance For Credit Losses | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Allowance For Credit Losses | ALLOWANCE FOR CREDIT LOSSES The FHLBank has established an allowance methodology for each of its portfolio segments: credit products (advances, letters of credit and other extensions of credit to borrowers); government mortgage loans held for portfolio; conventional mortgage loans held for portfolio; the direct financing lease receivable; term Federal funds sold; and term securities purchased under agreements to resell. Based on management's analyses of each portfolio segment, the FHLBank has only established an allowance for credit losses on its conventional mortgage loans held for portfolio. Credit Products: The FHLBank manages its credit exposure to credit products through an integrated approach that generally includes establishing a credit limit for each member. This approach includes an ongoing review of each member’s financial condition, in conjunction with conservative collateral/lending policies to limit risk of loss, while balancing members’ needs for a reliable source of funding. In addition, the FHLBank lends to its members in accordance with federal law and FHFA regulations. Specifically, the FHLBank is required to obtain sufficient collateral to fully secure credit products. The estimated value of the collateral required to secure each member’s credit products is calculated by applying collateral discounts, or haircuts, to the market value or UPB of the collateral, as applicable. The FHLBank accepts certain investment securities, residential mortgage loans, deposits, and other real estate related assets as collateral. In addition, community financial institutions are eligible to utilize expanded statutory collateral provisions for small business loans, small farm loans, small agri-business loans and community development loans. The FHLBank’s capital stock owned by borrowing members is held by the FHLBank as further collateral security for all indebtedness of the member to the FHLBank. Collateral arrangements may vary depending upon member credit quality, financial condition and performance; borrowing capacity; and overall credit exposure to the member. The FHLBank can also require additional or substitute collateral to protect its security interest. The FHLBank either allows a member to retain physical possession of the collateral assigned to an advance, or requires the member to specifically assign or place physical possession of the collateral with the FHLBank or its safekeeping agent. The FHLBank perfects its security interest in all pledged collateral. The Bank Act affords any security interest granted to the FHLBank by a member priority over the claims or rights of any other party except for claims or rights of a third party that would be entitled to priority under otherwise applicable law and are held by a bona fide purchaser for value or by a secured party holding a prior perfected security interest. Using a risk-based approach and taking into consideration each member’s financial strength, the FHLBank considers the type of collateral to be the primary indicator of credit quality on its credit products. As of December 31, 2019 and 2018 , the FHLBank had rights to collateral on a member-by-member basis with an estimated value in excess of its outstanding extensions of credit. The FHLBank continues to evaluate and make changes to its collateral guidelines, as necessary, based on current market conditions. Based upon the collateral held as security, management’s credit extension and collateral policies, management’s credit analysis and the repayment history on credit products, the FHLBank currently does not anticipate any credit losses on its credit products. Government Mortgage Loans Held for Portfolio: The FHLBank invests in government-guaranteed or -insured (by the Federal Housing Administration, the Department of Veterans Affairs, the Rural Housing Service of the Department of Agriculture and/or the Department of Housing and Urban Development) fixed rate mortgage loans secured by one-to-four family residential properties. The servicer provides and maintains insurance or a guarantee from the applicable government agency. The servicer is responsible for compliance with all government agency requirements and for obtaining the benefit of the applicable insurance or guarantee with respect to defaulted government mortgage loans. Any losses on these loans that are not recovered from the issuer or guarantor are absorbed by the servicers. Therefore, the FHLBank only has credit risk for these loans if the servicer fails to pay for losses not covered by the insurance or guarantee so the FHLBank has not established an allowance for credit losses on government mortgage loans. Conventional Mortgage Loans Held for Portfolio : The allowance for conventional loans is determined by a formula analysis based upon loss factors predominantly calculated using a historical analysis of loan performance. Delinquent loan migration analysis is performed to determine default probability rates, and historical loss analysis is performed to determine loss severity rates, both of which are then utilized as loss factors within the formula analysis. These analyses include consideration of various data observations, such as past performance, current performance, loan portfolio characteristics, collateral-related characteristics, industry data, and prevailing economic conditions. The allowance for conventional mortgage loan losses may consist of losses from: (1) individually evaluated mortgage loans, including collateral-dependent loans; (2) collectively evaluated homogeneous pools of residential mortgage loans; and/or (3) estimated additional credit losses in the portfolio. The formula analysis is consistently applied, but loss factors may be adjusted in response to changing conditions, as a result of management’s assessment of the adequacy of the allowance to absorb losses inherent in the portfolio. The FHLBank’s management of credit risk in the MPF Program involves several layers of loss protection that are defined in agreements among the FHLBank and its PFIs. The availability of loss protection may differ slightly among MPF products. The FHLBank’s loss protection consists of the following loss layers, in order of priority: ▪ Homeowner Equity. ▪ Private Mortgage Insurance (PMI). PMI is required on all conventional loans with homeowner equity of less than 20 percent of the original purchase price or appraised value. ▪ First Loss Account (FLA). The FLA functions as a tracking mechanism for determining the FHLBank’s potential loss exposure under each master commitment prior to the PFI’s CE obligation. If the FHLBank experiences losses in a master commitment, these losses will be: (1) absorbed by the FHLBank's FLA; and (2) recovered through the withholding of future performance-based CE fees from the PFI, if applicable. ▪ CE Obligation. PFIs are required to have a CE obligation in an amount based on a documented analysis, including consideration of applicable insurance, credit enhancements, and/or other sources for repayment on the asset or pool, that FHLBank has a high degree of confidence that it will absorb losses in excess of the FLA, even under reasonably likely adverse changes to expected economic conditions. The credit risk analysis of all conventional loans is performed at the individual master commitment level to properly determine the credit enhancements available to recover losses on mortgage loans under each individual master commitment. PFIs must either fully collateralize their CE obligation with assets considered acceptable by the FHLBank’s Member Products Policy (MPP) or purchase SMI from mortgage insurers, as applicable. Any incurred losses that would be absorbed by the CE obligation are not reserved as part of the FHLBank’s allowance for loan losses. The FHLBank pays the PFI a fee, a portion of which may be based on the credit performance of the mortgage loans, in exchange for absorbing the CE obligation loss layer up to an agreed-upon amount. For some products, losses incurred under the FLA may be recovered by withholding future performance-based CE fees otherwise paid to our PFIs. The FHLBank records CE fees paid to PFIs as a reduction to mortgage interest income. Table 7.1 presents net CE fees paid to PFIs for the years ended December 31, 2019, 2018, and 2017 (in thousands): Table 7.1 2019 2018 2017 CE fees paid to PFIs 1 $ 7,019 $ 6,196 $ 5,767 Performance-based CE fees recovered from PFIs (125 ) (107 ) (103 ) NET CE FEES PAID $ 6,894 $ 6,089 $ 5,664 1 CE fees paid to PFIs excludes the amortization of CE fees paid up front, which is included with premium amortization as a reduction to mortgage interest income. Collectively Evaluated Mortgage Loans: The credit risk analysis of conventional loans evaluated collectively for impairment considers loan pool specific attribute data, including historical delinquency migration, applies estimated loss severities, and incorporates the associated credit enhancements in order to determine the FHLBank’s best estimate of probable incurred losses. Migration analysis is a methodology for determining, through the FHLBank’s experience over a historical period, the rate of default on pools of similar loans. The FHLBank applies migration analysis to loans based on the following categories: (1) loans in foreclosure; (2) nonaccrual loans; (3) delinquent loans; and (4) all other remaining loans. The FHLBank then estimates how many loans in these categories may migrate to a realized loss position and applies a loss severity factor to estimate losses incurred as of the Statement of Condition date. Individually Evaluated Mortgage Loans: Certain conventional mortgage loans, primarily impaired mortgage loans that are considered collateral-dependent, may be specifically identified for purposes of calculating the allowance for credit losses. A mortgage loan is considered collateral-dependent if repayment is expected to be provided by the sale of the underlying property, that is, if it is considered likely that the borrower will default. The estimated credit losses on impaired collateral-dependent loans may be separately determined because sufficient information exists to make a reasonable estimate of the inherent loss for these loans on an individual loan basis. The FHLBank estimates the fair value of this collateral by applying an appropriate loss severity rate or using third party estimates or property valuation models. The incurred loss of an individually evaluated mortgage loan is equal to the difference between the carrying value of the loan and the estimated fair value of the collateral, less estimated selling costs, and may include expected proceeds from PMI and other applicable credit enhancements. Direct Financing Lease Receivable: The FHLBank has a recorded investment in a direct financing lease receivable with a member for a building complex and property. Under the office complex agreement, the FHLBank has all rights and remedies under the lease agreement as well as all rights and remedies available under the member’s Advance, Pledge and Security Agreement. Consequently, the FHLBank can apply any excess collateral securing credit products to any shortfall in the leasing arrangement. Allowance for Credit Losses : Table 7.2 presents a roll-forward of the allowance for credit losses for the years ended December 31, 2019, 2018, and 2017 (in thousands): Table 7.2 Conventional Loans 2019 2018 2017 Balance, beginning of the period $ 812 $ 1,208 $ 1,674 Net (charge-offs) recoveries (214 ) (423 ) (280 ) Provision (reversal) for credit losses 387 27 (186 ) Balance, end of the period $ 985 $ 812 $ 1,208 Table 7.3 presents the allowance for credit losses and the recorded investment as well as the method used to evaluate impairment relating to all portfolio segments regardless of whether or not an estimated credit loss has been recorded as of December 31, 2019 (in thousands). The recorded investment in a financing receivable is the UPB, adjusted for accrued interest, net deferred loan fees or costs, unamortized premiums or discounts, fair value hedging adjustments and direct write-downs. The recorded investment is not net of any valuation allowance. Table 7.3 12/31/2019 Conventional Loans Government Loans Credit Products 1 Direct Financing Lease Receivable Total Allowance for credit losses: Individually evaluated for impairment $ — $ — $ — $ — $ — Collectively evaluated for impairment 985 — — — 985 TOTAL ALLOWANCE FOR CREDIT LOSSES $ 985 $ — $ — $ — $ 985 Recorded investment: Individually evaluated for impairment $ 12,068 $ — $ 30,286,952 $ 8,829 $ 30,307,849 Collectively evaluated for impairment 10,036,462 637,821 — — 10,674,283 TOTAL RECORDED INVESTMENT $ 10,048,530 $ 637,821 $ 30,286,952 $ 8,829 $ 40,982,132 1 The recorded investment for credit products includes only advances. The recorded investment for all other credit products is insignificant. Table 7.4 presents the allowance for credit losses and the recorded investment as well as the method used to evaluate impairment relating to all portfolio segments regardless of whether or not an estimated credit loss has been recorded as of December 31, 2018 (in thousands): Table 7.4 12/31/2018 Conventional Government Credit 1 Direct Total Allowance for credit losses: Individually evaluated for impairment $ 50 $ — $ — $ — $ 50 Collectively evaluated for impairment 762 — — — 762 TOTAL ALLOWANCE FOR CREDIT LOSSES $ 812 $ — $ — $ — $ 812 Recorded investment: Individually evaluated for impairment $ 8,679 $ — $ 28,777,274 $ 11,966 $ 28,797,919 Collectively evaluated for impairment 7,760,900 683,856 — — 8,444,756 TOTAL RECORDED INVESTMENT $ 7,769,579 $ 683,856 $ 28,777,274 $ 11,966 $ 37,242,675 1 The recorded investment for credit products includes only advances. The recorded investment for all other credit products is insignificant. Credit Quality Indicator and Other Delinquency Statistics: The FHLBank’s key credit quality indicator is payment status. Table 7.5 presents the payment status based on recorded investment as well as other delinquency statistics for all of the FHLBank’s portfolio segments as of December 31, 2019 (dollar amounts in thousands): Table 7.5 12/31/2019 Conventional Loans Government Loans Credit Products 1 Direct Financing Lease Receivable Total Recorded investment: Past due 30-59 days delinquent $ 59,226 $ 15,515 $ — $ — $ 74,741 Past due 60-89 days delinquent 7,561 6,128 — — 13,689 Past due 90 days or more delinquent 11,813 8,778 — — 20,591 Total past due 78,600 30,421 — — 109,021 Total current loans 9,969,930 607,400 30,286,952 8,829 40,873,111 Total recorded investment $ 10,048,530 $ 637,821 $ 30,286,952 $ 8,829 $ 40,982,132 Other delinquency statistics: In process of foreclosure, included above 2 $ 3,352 $ 2,730 $ — $ — $ 6,082 Serious delinquency rate 3 0.1 % 1.4 % — % — % 0.1 % Past due 90 days or more and still accruing interest $ — $ 8,778 $ — $ — $ 8,778 Loans on non-accrual status 4 $ 14,923 $ — $ — $ — $ 14,923 1 The recorded investment for credit products includes only advances. The recorded investment for all other credit products is insignificant. 2 Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans dependent on their delinquency status. 3 Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total recorded investment for the portfolio class. 4 Loans on non-accrual status include $1,219,000 of troubled debt restructurings. Troubled debt restructurings are restructurings in which the FHLBank, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. Table 7.6 presents the payment status based on recorded investment as well as other delinquency statistics for all of the FHLBank’s portfolio segments as of December 31, 2018 (dollar amounts in thousands): Table 7.6 12/31/2018 Conventional Loans Government Loans Credit Products 1 Direct Financing Lease Receivable Total Recorded investment: Past due 30-59 days delinquent $ 34,020 $ 14,790 $ — $ — $ 48,810 Past due 60-89 days delinquent 6,750 6,114 — — 12,864 Past due 90 days or more delinquent 8,169 7,898 — — 16,067 Total past due 48,939 28,802 — — 77,741 Total current loans 7,720,640 655,054 28,777,274 11,966 37,164,934 Total recorded investment $ 7,769,579 $ 683,856 $ 28,777,274 $ 11,966 $ 37,242,675 Other delinquency statistics: In process of foreclosure, included above 2 $ 2,922 $ 2,398 $ — $ — $ 5,320 Serious delinquency rate 3 0.1 % 1.2 % — % — % — % Past due 90 days or more and still accruing interest $ — $ 7,898 $ — $ — $ 7,898 Loans on non-accrual status 4 $ 11,301 $ — $ — $ — $ 11,301 1 The recorded investment for credit products includes only advances. The recorded investment for all other credit products is insignificant. 2 Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans dependent on their delinquency status. 3 Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total recorded investment for the portfolio class. 4 Loans on non-accrual status include $1,265,000 of troubled debt restructurings. Troubled debt restructurings are restructurings in which the FHLBank, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. The FHLBank had $874,000 and $2,183,000 classified as REO recorded in other assets as of December 31, 2019 and 2018 , respectively. |
Derivatives And Hedging Activit
Derivatives And Hedging Activities | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives And Hedging Activities | DERIVATIVES AND HEDGING ACTIVITIES Nature of Business Activity: The FHLBank is exposed to interest rate risk primarily from the effect of interest rate changes on its interest-earning assets and its interest-bearing liabilities that finance these assets. The goal of the FHLBank’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 FHLBank has established policies and procedures, which include guidelines on the amount of exposure to interest rate changes it is willing to accept. In addition, the FHLBank monitors the risk to its interest income, net interest margin and average maturity of interest-earning assets and interest-bearing liabilities. Consistent with FHFA regulation, the FHLBank enters into derivatives to: (1) reduce the interest rate risk exposures inherent in otherwise unhedged assets and funding positions; and (2) achieve risk management objectives. FHFA regulation and the FHLBank’s RMP prohibit trading in or the speculative use of these derivative instruments and limit credit risk arising from these instruments. The use of derivatives is an integral part of the FHLBank’s financial and risk management strategy. The FHLBank 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 FHLBank uses derivatives are to: ▪ Reduce funding costs by combining an interest rate swap with a consolidated obligation because the cost of a combined funding structure can be lower than the cost of a comparable consolidated obligation; ▪ Reduce the interest rate sensitivity and repricing gaps of assets and liabilities; ▪ Preserve a favorable interest rate spread between the yield of an asset (e.g., an advance) and the cost of the related liability (e.g., the consolidated obligation used to fund the advance). Without the use of derivatives, this interest rate spread could be reduced or eliminated when a change in the interest rate on the advance does not match a change in the interest rate on the consolidated obligation; ▪ Mitigate the adverse earnings effects of the shortening or extension of certain assets (e.g., advances or mortgage assets) and liabilities; ▪ Manage embedded options in assets and liabilities; and ▪ Manage its overall asset/liability portfolio. Application of Derivatives: At the inception of every hedge transaction, the FHLBank documents all hedging relationships between derivatives designated as hedging instruments and the hedged items, its risk management objectives and strategies for undertaking various hedge transactions, and its method of assessing effectiveness. This process includes linking all derivatives that are designated as fair value hedges to assets and/or liabilities on the Statements of Condition or firm commitments. Derivative instruments are designated by the FHLBank as: ▪ A qualifying fair value hedge of an associated financial instrument or a firm commitment; or ▪ A non-qualifying economic hedge to manage certain defined risks in the Statements of Condition. These hedges are primarily used to: (1) manage mismatches between the coupon features of assets and liabilities; (2) offset prepayment risks in certain assets; (3) mitigate the income statement volatility that occurs when financial instruments are recorded at fair value and hedge accounting is not permitted; or (4) reduce exposure to reset risk. The FHLBank transacts most of its derivatives with large banks and major broker/dealers. Some of these banks and broker/dealers or their affiliates buy, sell and distribute consolidated obligations. Over-the-counter derivative transactions may be either executed through a bilateral agreement with a counterparty (uncleared derivatives) or cleared through a Futures Commission Merchant (i.e., clearing agent) with a Clearinghouse (cleared derivatives). Once a derivative transaction has been accepted for clearing by a Clearinghouse the executing counterparty is replaced with that Clearinghouse. The FHLBank is not a derivatives dealer, and thus does not trade derivatives for short-term profit. Types of Derivatives: The FHLBank primarily uses 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 principal 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 principal amount at a variable interest rate index for the same period of time. Swaptions - A swaption is an option 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 FHLBank against future interest rate changes. The FHLBank may enter into both payer swaptions and receiver swaptions to decrease its interest rate risk exposure related to the prepayment of certain assets. 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 or interest rate. 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 or interest rate. Interest rate caps and floors are designed as protection against the interest rate on a variable rate asset or liability rising or falling below a certain level. The FHLBank purchases interest rate caps and floors to hedge option risk on variable rate MBS held in the FHLBank’s trading and held-to-maturity portfolios and to hedge embedded caps or floors in the FHLBank’s advances. Types of Hedged Items: The FHLBank may have the following types of hedged items: Investments - The FHLBank invests in U.S. Treasury securities, U.S. Agency securities, GSE securities, MBS and state or local housing finance agency securities. The interest rate and prepayment risk associated with these investment securities is managed through a combination of debt issuance and derivatives. The FHLBank may manage the prepayment and interest rate risk by funding investment securities with consolidated obligations that have call features or by economically hedging the prepayment risk with interest rate caps or floors, callable swaps or swaptions. The FHLBank may manage against prepayment and duration risks by funding investment securities with consolidated obligations that have call features. The FHLBank may also manage the risk arising from changing market prices and volatility of investment securities by entering into economic derivatives that generally offset the changes in fair value of the securities. The FHLBank’s derivatives associated with trading and held-to-maturity securities are designated as economic hedges, and the FHLBank's derivatives associated with available-for-sale securities are designated and qualify as fair value hedges. Interest rate caps and floors, swaptions and callable swaps may also be used to hedge prepayment and option risk on the MBS held in the FHLBank’s trading, available-for-sale and held-to-maturity portfolios. Many of these derivatives are purchased interest rate caps that hedge interest rate caps embedded in the FHLBank’s trading and held-to-maturity variable rate Agency MBS. Although these derivatives are valid economic hedges against the prepayment and option risk of the portfolio of MBS, they are not specifically linked to individual investment securities and, therefore, do not receive fair value hedge accounting. The derivatives are marked-to-market through earnings. Advances - With the issuance of a convertible advance, the FHLBank purchases from the member an option that enables the FHLBank to convert an advance from a fixed rate to a variable rate if interest rates increase. Once the FHLBank exercises its option to convert an advance to an at-the-market variable rate, the member then owns the option to terminate the converted advance without fee or penalty on the conversion date and each interest rate reset date thereafter. The FHLBank hedges a convertible advance by entering into a cancelable derivative with a non-member counterparty where the FHLBank pays a fixed rate and receives a variable rate. The derivative counterparty may cancel the derivative on a put date. This type of hedge is designated as a fair value hedge. The counterparty’s decision to cancel the derivative would normally occur in a rising rate environment. If the option is in-the-money, the derivative is cancelled by the derivative counterparty at par (i.e., without any premium or other payment to the FHLBank). When the derivative is cancelled, the FHLBank exercises its option to convert the advance to a variable rate. If a convertible advance is not prepaid by the member upon conversion to an at-the-market variable rate advance (i.e., callable variable rate advance), any hedge-related unamortized basis adjustment is amortized as a yield adjustment. When fixed rate advances are issued to one or more borrowers, the FHLBank can either fund the advances with fixed rate consolidated obligations with the same tenor or simultaneously enter into a matching derivative in which the clearing agent or derivative counterparty receives fixed cash flows from the FHLBank designed to mirror in timing and amount the cash inflows the FHLBank receives on the advance. These transactions are designated as fair value hedges. In this type of transaction, the FHLBank typically receives from the clearing agent or derivative counterparty a variable cash flow that closely matches the interest payments on short-term discount notes or swapped consolidated obligation bonds. The repricing characteristics and optionality embedded in certain financial instruments held by the FHLBank can create interest rate risk. For example, when a member prepays an advance, the FHLBank could suffer lower future income if the principal portion of the prepaid advance were invested in lower-yielding assets that continue to be funded by higher-cost debt. To protect against this risk, the FHLBank generally charges a prepayment fee on an advance that makes it financially indifferent to a member’s decision to prepay the advance. When the FHLBank offers advances (other than short-term advances) that a member may prepay without a prepayment fee, it usually finances these advances with callable debt or otherwise hedges the option being sold to the member. Mortgage Loans - The FHLBank invests in fixed rate mortgage loans through the MPF Program. The prepayment options embedded in mortgage loans can result in extensions or contractions in the expected lives of these investments, depending on changes in estimated future cash flows, which usually occur as a result of interest rate changes. The FHLBank may manage the interest rate and prepayment risk associated with mortgage loans through a combination of debt issuance and derivatives. The FHLBank issues both callable and non-callable debt to achieve cash flow patterns and liability durations similar to those expected on the mortgage loans. The FHLBank may use derivatives in conjunction with debt issuance to better match the expected prepayment characteristics of its mortgage loan portfolio. Interest rate caps and floors, swaptions and callable swaps may also be used to hedge prepayment risk on the mortgage loans. Although these derivatives are valid economic hedges against the prepayment risk of the portfolio of mortgage loans, they are not specifically linked to individual loans and, therefore, do not receive fair value hedge accounting. The derivatives are marked-to-market through earnings. Consolidated Obligations - The FHLBank may enter into derivatives to hedge the interest rate risk associated with its debt issuances. The FHLBank manages the risk arising from changing market prices and volatility of a consolidated obligation by matching the cash inflow on the derivative with the cash outflow on the consolidated obligation. For instance, the FHLBank may issue a fixed rate consolidated obligation and simultaneously enter into a matching derivative in which the FHLBank received a fixed cash flow designed to mirror in timing and amount the cash outflows the FHLBank pays on the consolidated obligation. In this type of transaction, the FHLBank typically pays a variable cash flow that closely matches the interest payments it receives on short-term or variable rate advances. These transactions are designated as fair value hedges. The FHLBank may issue variable rate consolidated obligations indexed to the SOFR, Federal funds effective rate, LIBOR or other rates and generally simultaneously execute interest rate swaps to hedge the basis risk of the variable rate debt. This type of hedge is treated as an economic hedge and is marked-to-market through earnings. This strategy of issuing consolidated obligations while simultaneously entering into derivatives is intended to enable the FHLBank to offer a wider range of attractively priced advances to its members and may allow the FHLBank to reduce its funding costs. The continued attractiveness of this debt depends on yield relationships between the consolidated obligations and the derivative markets. If conditions change, the FHLBank may alter the types or terms of the consolidated obligations that it issues. Firm Commitments - Commitments that obligate the FHLBank to purchase closed fixed rate mortgage loans from its members are considered derivatives. Accordingly, each mortgage loan purchase commitment is recorded as a derivative asset or derivative liability at fair value, with changes in fair value recognized in current period earnings. When a mortgage loan purchase commitment derivative settles, the current market value of the commitment is included with the basis of the mortgage loan and amortized accordingly. Commitments that obligate the FHLBank to issue consolidated obligations that settle outside of normal market settlement conventions ( 5 business days for consolidated obligation discount notes and 30 calendar days for consolidated obligation bonds) are considered derivatives. Accordingly, each consolidated obligation commitment is recorded as a derivative asset or derivative liability at fair value, with changes in fair value recognized in current period earnings. When the consolidated obligation commitment derivative settles, the current market value of the commitment is included with the basis of the consolidated obligation and amortized accordingly. The FHLBank may also hedge a firm commitment for a forward starting advance or consolidated obligation bond through the use of an interest rate swap. In this case, the swap functions as the hedging instrument for both the hedging relationship involving the firm commitment and the subsequent hedging relationship involving the advance or bond and is treated as a fair value hedge. If the hedge relationship is de-designated when the commitment is terminated and the advance or bond is issued, the fair value change associated with the firm commitment is recorded as a basis adjustment of the advance or bond at the time of de-designation. The basis adjustment is then amortized into interest income or expense over the life of the advance or bond. In addition, if a hedged firm commitment no longer qualifies as a fair value hedge, the hedge would be terminated and net gains and losses would be recognized in current period earnings. There were no gains or losses recognized due to disqualification of firm commitment hedges during the years ended December 31, 2019, 2018, and 2017 . Financial Statement Impact and Additional Financial Information: Derivative instruments are recorded at fair value and reported in derivative assets or derivative liabilities on the Statements of Condition. Premiums paid at acquisition are accounted for as the basis of the derivative at inception of the hedge. The notional amount in derivative contracts serves as a factor in determining periodic interest payments or cash flows received and paid. However, the notional amount of derivatives reflects the FHLBank’s involvement in the various classes of financial instruments and represents neither the actual amounts exchanged nor the overall exposure of the FHLBank to credit and market risk; the overall risk is much smaller. The risks of derivatives can be measured meaningfully on a portfolio basis that takes into account the clearing agents, counterparties, the types of derivatives, the items being hedged and any offsets between the derivatives and the items being hedged. The FHLBank considers accrued interest receivables and payables and the legal right to offset derivative assets and liabilities by clearing agent or derivative counterparty. Consequently, derivative assets and liabilities reported on the Statements of Condition generally include the net cash collateral, including initial margin, and accrued interest received or pledged by clearing agents and/or derivative counterparties. Therefore, an individual derivative may be in an asset position (clearing agent or derivative counterparty would owe the FHLBank the current fair value, which includes net accrued interest receivable or payable on the derivative, if the derivative was settled as of the Statement of Condition date) but when the derivative fair value and cash collateral fair value (includes accrued interest on the collateral) are netted by clearing agent by Clearinghouse, or by derivative counterparty, the derivative may be recorded on the Statements of Condition as a derivative liability. Conversely, a derivative may be in a liability position (FHLBank would owe the clearing agent or derivative counterparty the fair value if settled as of the Statement of Condition date) but may be recorded on the Statements of Condition as a derivative asset after netting. Table 8.1 presents outstanding notional amounts and fair values of the derivatives outstanding by type of derivative and by hedge designation as of December 31, 2019 and 2018 (in thousands). Total derivative assets and liabilities include the effect of netting adjustments and cash collateral. Table 8.1 12/31/2019 12/31/2018 Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Interest rate swaps $ 16,448,512 $ 23,462 $ 80,398 $ 8,345,925 $ 73,969 $ 24,177 Total derivatives designated as hedging relationships 16,448,512 23,462 80,398 8,345,925 73,969 24,177 Derivatives not designated as hedging instruments: Interest rate swaps 3,099,622 736 26,285 2,151,920 12,907 17,322 Interest rate caps/floors 1,130,000 117 — 1,373,200 1,044 — Mortgage delivery commitments 221,800 495 25 101,551 552 3 Consolidated obligation discount note commitments — — — 525,000 — — Total derivatives not designated as hedging instruments 4,451,422 1,348 26,310 4,151,671 14,503 17,325 TOTAL $ 20,899,934 24,810 106,708 $ 12,497,596 88,472 41,502 Netting adjustments and cash collateral 1 129,994 (106,506 ) (52,377 ) (33,618 ) DERIVATIVE ASSETS AND LIABILITIES $ 154,804 $ 202 $ 36,095 $ 7,884 1 Amounts represent the application of the netting requirements that allow the FHLBank to settle positive and negative positions, cash collateral, and related accrued interest held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $236,700,000 and $58,902,000 as of December 31, 2019 and 2018 , respectively. Cash collateral received was $200,000 and $77,661,000 as of December 31, 2019 and 2018 , respectively. The FHLBank carries derivative instruments at fair value on its Statements of Condition. Any change in the fair value of derivatives designated under a fair value hedging relationship is recorded each period in current period earnings. Fair value hedge accounting allows for the offsetting fair value of the hedged risk in the hedged item to also be recorded in current period earnings. Beginning on January 1, 2019, changes in fair value of the derivative hedging instrument and the hedged item attributable to the hedged risk for designated fair value hedges are recorded in net interest income in the same line as the earnings effect of the hedged item. Prior to January 1, 2019, for fair value hedges, any hedge ineffectiveness (which represented the amount by which the change in the fair value of the derivative differed from the change in the fair value of the hedge item) was recorded in non-interest income as net gains (losses) on derivatives and hedging activities. Interest settlements on derivatives designated as fair value hedges were recorded in net interest income or expense prior to, and continue to be recorded in net interest income or expense after January 1, 2019. However, beginning on January 1, 2019, gains (losses) on fair value derivatives include unrealized changes in fair value as well as net interest settlements. For the years ended December 31, 2019, 2018, and 2017 , the FHLBank recorded net gains (losses) on derivatives and the related hedged items in fair value hedging relationships and the impact of those derivatives on the FHLBank’s net interest income and net gains (losses) on derivatives and hedging activities, if applicable, as presented in Table 8.2 (in thousands): Table 8.2 2019 Interest Income/Expense Advances Available-for-sale Securities Consolidated Obligation Discount Notes Consolidated Obligation Bonds Total amounts presented in the Statements of Income $ 716,199 $ 116,866 $ 532,155 $ 689,275 Gains (losses) on fair value hedging relationships: Interest rate contracts: Derivatives 1 $ (96,772 ) $ (140,821 ) $ 75 $ 27,229 Hedged items 2 115,323 139,828 138 (32,904 ) NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS $ 18,551 $ (993 ) $ 213 $ (5,675 ) 2018 3 Interest Income/Expense Non-interest Income Advances Available-for-sale Securities Consolidated Obligation Discount Notes Consolidated Obligation Bonds Net gains (losses) on derivatives and hedging activities Gains (losses) on fair value hedging relationships: Interest rate contracts: Derivatives 1 $ 9,653 $ 474 $ 12 $ (5,178 ) $ 21,360 Hedged items 2 (3,881 ) — — — (27,650 ) NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS $ 5,772 $ 474 $ 12 $ (5,178 ) $ (6,290 ) 2017 3 Interest Income/Expense Non-interest Income Advances Available-for-sale Securities Consolidated Obligation Discount Notes Consolidated Obligation Bonds Net gains (losses) on derivatives and hedging activities Gains (losses) on fair value hedging relationships: Interest rate contracts: Derivatives 1 $ (43,547 ) $ (9,271 ) $ (15 ) $ 14,514 $ 50,916 Hedged items 2 (5,381 ) — — — (54,768 ) NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS $ (48,928 ) $ (9,271 ) $ (15 ) $ 14,514 $ (3,852 ) 1 Includes net interest settlements in interest income/expense. 2 Includes amortization/accretion on closed fair value relationships in interest income. 3 Prior period amounts were not conformed to new hedge accounting guidance adopted January 1, 2019. Table 8.3 presents the cumulative basis adjustments on hedged items designated as fair value hedges and the related amortized cost of the hedged items as of December 31, 2019 (in thousands): Table 8.3 12/31/2019 Line Item in Statement of Condition of Hedged Item Carrying Value of Hedged Asset/(Liability) 1 Basis Adjustments for Active Hedging Relationships 2 Basis Adjustments for Discontinued Hedging Relationships 2 Cumulative Amount of Fair Value Hedging Basis Adjustments 2 Advances $ 4,951,445 $ 69,643 $ 1,424 $ 71,067 Available-for-sale securities 7,155,712 79,141 — 79,141 Consolidated obligation bonds (3,270,635 ) (26,389 ) — (26,389 ) 1 Includes only the portion of carrying value representing the hedged items in fair value hedging relationships. For available-for-sale securities, amortized cost is considered to be carrying value (i.e., the fair value adjustment recorded in accumulated OCI (AOCI) is excluded). 2 Included in amortized cost of the hedged asset/liability. Table 8.4 provides information regarding gains and losses on derivatives and hedging activities recorded in non-interest income (in thousands). For fair value hedging relationships, the portion of net gains (losses) representing hedge ineffectiveness are recorded in non-interest income for periods prior to January 1, 2019. Table 8.4 2019 2018 2017 Derivatives designated as hedging instruments: Interest rate swaps $ (6,290 ) $ (3,852 ) Total net gains (losses) related to fair value hedge ineffectiveness (6,290 ) (3,852 ) Derivatives not designated as hedging instruments: Economic hedges: Interest rate swaps $ (56,961 ) 10,114 19,391 Interest rate caps/floors (927 ) 33 (3,848 ) Net interest settlements (3,974 ) (5,476 ) (15,143 ) Mortgage delivery commitments 4,309 (1,642 ) 2,207 Consolidated obligation discount note commitments (70 ) 70 — Total net gains (losses) related to derivatives not designated as hedging instruments (57,623 ) 3,099 2,607 NET GAINS (LOSSES) ON DERIVATIVES AND HEDGING ACTIVITIES $ (57,623 ) $ (3,191 ) $ (1,245 ) Managing Credit Risk on Derivatives: The FHLBank is subject to credit risk due to the risk of nonperformance by counterparties to its derivative transactions and manages credit risk through credit analyses, collateral requirements and adherence to the requirements set forth in its RMP, U.S. Commodity Futures Trading Commission regulations and FHFA regulations. Uncleared derivatives . For uncleared derivatives, the degree of credit risk depends on the extent to which master netting arrangements are included in these contracts to mitigate the risk. The FHLBank requires collateral agreements with collateral delivery thresholds on all uncleared derivatives. All bilateral security agreements include bilateral-collateral-exchange provisions that require all credit exposures be collateralized, subject to minimum transfer amounts. Additionally, collateral related to derivatives with member institutions includes collateral assigned to the FHLBank, as evidenced by a written security agreement. Based on credit analyses and collateral requirements, FHLBank management does not anticipate any credit losses on its derivative agreements. The maximum credit risk applicable to a single counterparty was $211,000 and $25,799,000 as of December 31, 2019 and 2018 , respectively. The counterparty was different for each period . Cleared derivatives. For cleared derivatives, a Clearinghouse is the FHLBank’s counterparty. The applicable Clearinghouse notifies the clearing agent of the required initial and variation margin, and the clearing agent in turn notifies the FHLBank. The FHLBank utilizes two Clearinghouses for all cleared derivative transactions, LCH Ltd and CME Clearing. At both Clearinghouses, variation margin is characterized as daily settlement payments, and initial margin is considered cash collateral. The requirement that the FHLBank posts initial and variation margin through the clearing agent, to the Clearinghouse, exposes the FHLBank 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 value of cleared derivatives is posted daily through a clearing agent. The Clearinghouse determines initial margin requirements and generally, credit ratings are not factored into the initial margin. However, clearing agents may require additional initial margin to be posted based on credit considerations, including but not limited to credit rating downgrades. The FHLBank was not required to post additional initial margin by its clearing agents as of December 31, 2019 and 2018 . The FHLBank’s net exposure on derivative agreements is presented in Note 12 . |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Deposits | DEPOSITS The FHLBank offers demand, overnight and short-term deposit programs to its members and to other qualifying non-members. Table 9.1 details the types of deposits held by the FHLBank as of December 31, 2019 and 2018 (in thousands): Table 9.1 12/31/2019 12/31/2018 Interest-bearing: Demand $ 383,197 $ 265,021 Overnight 280,300 158,300 Total interest-bearing 663,497 423,321 Non-interest-bearing: Other 127,143 50,499 Total non-interest-bearing 127,143 50,499 TOTAL DEPOSITS $ 790,640 $ 473,820 Deposits classified as demand and overnight pay interest based on a daily interest rate. Term deposits pay interest based on a fixed rate determined at the issuance of the deposit. There were no term deposits as of December 31, 2019 and 2018 . |
Consolidated Obligations
Consolidated Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Consolidated Obligations | CONSOLIDATED OBLIGATIONS Consolidated obligations consist of consolidated bonds and discount notes and, as provided by the Bank Act or FHFA regulation, are backed only by the financial resources of the FHLBanks. The FHLBanks jointly issue consolidated obligations with the Office of Finance acting as their agent. The Office of Finance tracks the amounts of debt issued on behalf of each FHLBank. In addition, the FHLBank records as a liability its specific portion of consolidated obligations for which it is the primary obligor. The FHLBank utilizes a debt issuance process to provide a scheduled monthly issuance of global bullet consolidated obligation bonds. As part of this process, management from each of the FHLBanks determines and communicates a firm commitment to the Office of Finance for an amount of scheduled global debt to be issued on its behalf. If the FHLBanks’ commitments do not meet the minimum debt issue size, the proceeds are allocated to all FHLBanks based on the larger of the FHLBank’s commitment or allocated proceeds based on the individual FHLBank’s regulatory capital to total system regulatory capital. If the FHLBanks’ commitments exceed the minimum debt issue size, the proceeds are allocated based on relative regulatory capital of the FHLBanks with the allocation limited to the lesser of the allocation amount or actual commitment amount. The FHFA and the U.S. Secretary of the Treasury oversee the issuance of FHLBank debt through the Office of Finance. The FHLBanks can, however, pass on any scheduled calendar slot and not issue any global bullet consolidated obligation bonds upon agreement of 8 of the 11 FHLBanks. Consolidated obligation bonds may be issued to raise short-, intermediate-, and long-term funds for the FHLBanks and are not subject to any statutory or regulatory limits as to maturities. Consolidated obligation discount notes, which are issued to raise short-term funds, are generally issued at less than their face amounts and redeemed at par when they mature. Although the FHLBank is primarily liable for its portion of consolidated obligations, the FHLBank is also jointly and severally liable with the other 10 FHLBanks for the payment of principal and interest on all consolidated obligations of each of the FHLBanks. The FHFA, at its discretion, may require any FHLBank to make principal or interest payments due on any consolidated obligations for which the FHLBank is not the primary obligor. Although it has never occurred, to the extent that an FHLBank would be required to make a payment on a consolidated obligation on behalf of another FHLBank, the paying FHLBank would be entitled to reimbursement from the non-complying FHLBank. However, if the FHFA determines that the non-complying FHLBank is unable to satisfy its obligations, then the FHFA may allocate the non-complying FHLBank’s outstanding consolidated obligation debt among the remaining FHLBanks on a pro rata basis in proportion to each FHLBank’s participation in all consolidated obligations outstanding, or on any other basis the FHFA may determine to ensure that the FHLBanks operate in a safe and sound manner. The par value of outstanding consolidated obligations of all FHLBanks, including outstanding consolidated obligations issued on behalf of the FHLBank, was $1,025,894,666,000 and $1,031,617,463,000 as of December 31, 2019 and 2018 , respectively. See Note 19 for FHLBank obligations acquired by FHLBank Topeka as investments. FHFA regulations require that each FHLBank maintain unpledged qualifying assets equal to its participation in the total consolidated obligations outstanding. Qualifying assets are defined as cash; secured advances; obligations of or fully guaranteed by the United States; obligations, participations or other instruments of or issued by Fannie Mae or Ginnie Mae; mortgages, obligations or other securities, which are or have ever been sold by Freddie Mac under the Bank Act; and such securities as fiduciary and trust funds may invest in under the laws of the state in which the FHLBank is located. Consolidated Obligation Bonds: Table 10.1 presents the FHLBank’s participation in consolidated obligation bonds outstanding as of December 31, 2019 and 2018 (dollar amounts in thousands): Table 10.1 12/31/2019 12/31/2018 Year of Contractual Maturity Amount Weighted Average Interest Rate Amount Weighted Average Interest Rate Due in one year or less $ 15,991,800 1.79 % $ 8,960,500 2.17 % Due after one year through two years 6,318,350 1.90 5,625,750 2.28 Due after two years through three years 1,375,000 2.11 2,285,100 2.11 Due after three years through four years 1,285,900 2.39 1,134,750 2.21 Due after four years through five years 1,223,350 2.40 1,087,900 2.58 Thereafter 5,776,300 2.78 4,879,850 3.01 Total par value 31,970,700 2.05 % 23,973,850 2.38 % Premiums 34,789 15,591 Discounts (3,357 ) (4,088 ) Concession fees (15,207 ) (12,445 ) Hedging adjustments 26,389 (6,514 ) TOTAL $ 32,013,314 $ 23,966,394 The FHLBank issues optional principal redemption bonds (callable bonds) that may be redeemed in whole or in part at the discretion of the FHLBank on predetermined call dates in accordance with terms of bond offerings. The FHLBank’s participation in consolidated obligation bonds outstanding as of December 31, 2019 and 2018 includes callable bonds totaling $8,891,500,000 and $8,559,000,000 , respectively. The FHLBank uses the unswapped callable bonds for financing its callable fixed rate advances (Note 5 ), MBS (Note 4 ) and mortgage loans (Note 6 ). Contemporaneous with a portion of its fixed rate callable bond issuances, the FHLBank also enters into interest rate swap agreements (in which the FHLBank generally pays a variable rate and receives a fixed rate) with call features that mirror the options in the callable bonds (a sold callable swap). The combined sold callable swap and callable debt transaction allows the FHLBank to obtain attractively priced variable rate financing. Table 10.2 summarizes the FHLBank’s participation in consolidated obligation bonds outstanding by year of maturity, or by the next call date for callable bonds as of December 31, 2019 and 2018 (in thousands): Table 10.2 Year of Maturity or Next Call Date 12/31/2019 12/31/2018 Due in one year or less $ 24,583,300 $ 16,971,500 Due after one year through two years 5,148,350 5,270,750 Due after two years through three years 615,000 655,100 Due after three years through four years 682,400 319,750 Due after four years through five years 356,850 275,150 Thereafter 584,800 481,600 TOTAL PAR VALUE $ 31,970,700 $ 23,973,850 In addition to having fixed rate or simple variable rate coupon payment terms, consolidated obligation bonds may also have the following broad terms, regarding the coupon payment: ▪ Range bonds that have coupon rates at fixed or variable rates and pay the fixed or variable rate as long as the index rate is within the established range, but generally pay zero percent or a minimal interest rate if the specified index rate is outside the established range; ▪ Conversion bonds that have coupon rates that convert from fixed to variable, or variable to fixed, rates or from one index to another, on predetermined dates according to the terms of the bond offerings; and ▪ Step bonds that have coupon rates at fixed or variable rates for specified intervals over the lives of the bonds. At the end of each specified interval, the coupon rate or variable rate spread increases (decreases) or steps up (steps down). These bond issues generally contain call provisions enabling the bonds to be called at the FHLBank’s discretion on the step dates. Table 10.3 summarizes interest rate payment terms for consolidated obligation bonds as of December 31, 2019 and 2018 (in thousands): Table 10.3 12/31/2019 12/31/2018 Simple variable rate $ 16,017,000 $ 10,095,000 Fixed rate 15,573,700 12,858,850 Variable rate with cap 220,000 20,000 Step 110,000 470,000 Fixed to variable rate 50,000 515,000 Range — 15,000 TOTAL PAR VALUE $ 31,970,700 $ 23,973,850 Consolidated Discount Notes: Table 10.4 summarizes the FHLBank’s participation in consolidated obligation discount notes, all of which are due within one year (dollar amounts in thousands): Table 10.4 Book Value Par Value Weighted Average Interest Rate 1 December 31, 2019 $ 27,447,911 $ 27,510,042 1.54 % December 31, 2018 $ 20,608,332 $ 20,649,098 2.35 % 1 Represents yield to maturity excluding concession fees. Information about the fair value of the consolidated obligations is included in Note 16 . |
Affordable Housing Program
Affordable Housing Program | 12 Months Ended |
Dec. 31, 2019 | |
Affordable Housing Program [Abstract] | |
Affordable Housing Program | NOTE 11 – AFFORDABLE HOUSING PROGRAM The Bank Act requires each FHLBank to establish an AHP. As a part of its AHP, the FHLBank provides subsidies in the form of direct grants or below-market interest rate advances to members that use the funds to assist in the purchase, construction or rehabilitation of housing for very low-, low- and moderate-income households. Each FHLBank is required to contribute to its AHP the greater of: (a) 10 percent of its previous year's income subject to assessment; or (b) the prorated sum required to ensure the aggregate contribution by the FHLBanks is no less than $100,000,000 each year. For purposes of the AHP calculation, the term “income subject to assessment” is defined as income before interest expense related to mandatorily redeemable capital stock and the assessment for AHP. The FHLBank accrues this expense monthly based on its income subject to assessment. The amount set aside for AHP is charged to expense and recognized as a liability. As subsidies are provided through the disbursement of grants or issuance of subsidized advances, the AHP liability is reduced accordingly. If the FHLBank’s income subject to assessment would ever be zero or less, the amount of AHP liability would generally be equal to zero. However, if the result of the aggregate 10 percent calculation described above is less than the $100,000,000 minimum for all FHLBanks as a group, then the Bank Act requires the shortfall to be allocated among the FHLBanks based on the ratio of each FHLBank’s income for the previous year. If an FHLBank determines that its required AHP contributions are exacerbating any financial instability of that FHLBank, it may apply to the FHFA for a temporary suspension of its AHP contributions. The FHLBank has never applied to the FHFA for a temporary suspension of its AHP contributions. Table 11.1 details the change in the AHP liability for the years ended December 31, 2019, 2018, and 2017 (in thousands): Table 11.1 2019 2018 2017 Appropriated and reserved AHP funds as of the beginning of the period $ 43,081 $ 43,005 $ 33,242 AHP set aside based on current year income 20,597 18,944 21,934 Direct grants disbursed (20,973 ) (19,027 ) (12,752 ) Recaptured funds 1 322 159 581 Appropriated and reserved AHP funds as of the end of the period $ 43,027 $ 43,081 $ 43,005 1 Recaptured funds are direct grants returned to the FHLBank in those instances where the commitments associated with the approved use of funds are not met and repayment to the FHLBank is required by regulation. Recaptured funds are returned as a result of: (1) AHP-assisted homeowner’s transfer or sale of property within the five-year retention period that the assisted homeowner is required to occupy the property; (2) homeowner’s failure to acquire sufficient loan funding (funds previously approved and disbursed cannot be used); (3) over-subsidized projects; or (4) previously disbursed but unused grants. As of December 31, 2019 , the FHLBank’s AHP accrual on its Statements of Condition consisted of $20,814,000 for the 2020 AHP (uncommitted, including amounts recaptured and reallocated from prior years) and $22,213,000 for prior years’ AHP (committed but undisbursed). |
Assets and Liabilities Subject
Assets and Liabilities Subject to Offsetting | 12 Months Ended |
Dec. 31, 2019 | |
Offsetting [Abstract] | |
Assets and Liabilities Subject to Offsetting | ASSETS AND LIABILITIES SUBJECT TO OFFSETTING The FHLBank presents certain financial instruments, including derivatives, repurchase agreements and securities purchased under agreements to resell, on a net basis by clearing agent by Clearinghouse, or by counterparty, when it has met the netting requirements. For these financial instruments, the FHLBank has elected to offset its asset and liability positions, as well as cash collateral received or pledged, and associated accrued interest. The FHLBank has analyzed the enforceability of offsetting rights incorporated in its cleared derivative transactions and 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 clearing agent, or both. Based on this analysis, the FHLBank presents a net derivative receivable or payable for all of its transactions through a particular clearing agent with a particular Clearinghouse. Tables 12.1 and 12.2 present the fair value of financial assets, including the related collateral received from or pledged to clearing agents or counterparties, based on the terms of the FHLBank’s master netting arrangements or similar agreements as of December 31, 2019 and 2018 (in thousands): Table 12.1 12/31/2019 Description Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Condition Net Amounts of Assets Presented in the Statement of Condition Gross Amounts Not Offset in the Statement of Condition 1 Net Amount Derivative assets: Uncleared derivatives $ 21,749 $ (14,424 ) $ 7,325 $ (495 ) $ 6,830 Cleared derivatives 3,061 144,418 147,479 — 147,479 Total derivative assets 24,810 129,994 154,804 (495 ) 154,309 Securities purchased under agreements to resell 4,750,000 — 4,750,000 (4,750,000 ) — TOTAL $ 4,774,810 $ 129,994 $ 4,904,804 $ (4,750,495 ) $ 154,309 1 Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments). Table 12.2 12/31/2018 Description Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Condition Net Amounts of Assets Presented in the Statement of Condition Gross Amounts Not Offset in the Statement of Condition 1 Net Amount Derivative assets: Uncleared derivatives $ 88,296 $ (83,378 ) $ 4,918 $ (1,618 ) $ 3,300 Cleared derivatives 176 31,001 31,177 — 31,177 Total derivative assets 88,472 (52,377 ) 36,095 (1,618 ) 34,477 Securities purchased under agreements to resell 1,251,096 — 1,251,096 (1,251,096 ) — TOTAL $ 1,339,568 $ (52,377 ) $ 1,287,191 $ (1,252,714 ) $ 34,477 1 Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments). Tables 12.3 and 12.4 present the fair value of financial liabilities, including the related collateral received from or pledged to counterparties, based on the terms of the FHLBank’s master netting arrangements or similar agreements as of December 31, 2019 and 2018 (in thousands): Table 12.3 12/31/2019 Description Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Condition Net Amounts of Liabilities Presented in the Statement of Condition Gross Amounts Not Offset in the Statement of Condition 1 Net Amount Derivative liabilities: Uncleared derivatives $ 105,468 $ (105,266 ) $ 202 $ (25 ) $ 177 Cleared derivatives 1,240 (1,240 ) — — — Total derivative liabilities 106,708 (106,506 ) 202 (25 ) 177 TOTAL $ 106,708 $ (106,506 ) $ 202 $ (25 ) $ 177 1 Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments). Table 12.4 12/31/2018 Description Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Condition Net Amounts of Liabilities Presented in the Statement of Condition Gross Amounts Not Offset in the Statement of Condition 1 Net Amount Derivative liabilities: Uncleared derivatives $ 36,363 $ (28,479 ) $ 7,884 $ (3 ) $ 7,881 Cleared derivatives 5,139 (5,139 ) — — — Total derivative liabilities 41,502 (33,618 ) 7,884 (3 ) 7,881 TOTAL $ 41,502 $ (33,618 ) $ 7,884 $ (3 ) $ 7,881 1 Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments). |
Capital
Capital | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Capital | CAPITAL Capital Requirements: The FHLBank is subject to three capital requirements under the provisions of the Gramm-Leach-Bliley Act (GLB Act) and the FHFA's capital structure regulation. Regulatory capital does not include AOCI but does include mandatorily redeemable capital stock. • Risk-based capital. The FHLBank must maintain at all times permanent capital in an amount at least equal to the sum of its credit risk, market risk and operations risk capital requirements. The risk-based capital requirements are all calculated in accordance with the rules and regulations of the FHFA. Only permanent capital, defined as Class B Common Stock and retained earnings, can be used by the FHLBank to satisfy its risk-based capital requirement. The FHFA may require the FHLBank to maintain a greater amount of permanent capital than is required by the risk-based capital requirement as defined, but the FHFA has not placed any such requirement on the FHLBank to date. • Total regulatory capital. The GLB Act requires the FHLBank to maintain at all times at least a 4.0 percent total capital-to-asset ratio. Total regulatory capital is defined as the sum of permanent capital, Class A Common Stock, any general loss allowance, if consistent with GAAP and not established for specific assets, and other amounts from sources determined by the FHFA as available to absorb losses. • Leverage capital. The FHLBank is required to maintain at all times a leverage capital-to-assets ratio of at least 5.0 percent , with the leverage capital ratio defined as the sum of permanent capital weighted 1.5 times and non-permanent capital (currently only Class A Common Stock) weighted 1.0 times, divided by total assets. Table 13.1 illustrates that the FHLBank was in compliance with its regulatory capital requirements as of December 31, 2019 and 2018 (dollar amounts in thousands): Table 13.1 12/31/2019 12/31/2018 Required Actual Required Actual Regulatory capital requirements: Risk-based capital $ 486,650 $ 2,319,531 $ 387,729 $ 2,193,001 Total regulatory capital-to-asset ratio 4.0 % 4.4 % 4.0 % 5.1 % Total regulatory capital $ 2,531,066 $ 2,768,680 $ 1,908,610 $ 2,442,156 Leverage capital ratio 5.0 % 6.2 % 5.0 % 7.4 % Leverage capital $ 3,163,833 $ 3,928,446 $ 2,385,763 $ 3,538,656 Capital Stock: The FHLBank offers two classes of stock, Class A Common Stock and Class B Common Stock. Each member is required to hold capital stock to become and remain a member of the FHLBank (Asset-based Stock Purchase Requirement; Class A Common Stock) and enter into specified activities with the FHLBank including, but not limited to, access to the FHLBank’s credit products and selling Acquired Member Assets (AMA) to the FHLBank (Activity-based Stock Purchase Requirement; Class A Common Stock to the extent of a member’s Asset-based Stock Purchase Requirement, then Class B Common Stock for the remainder). The amount of Class A Common Stock a member must acquire and maintain is the Asset-based Stock Purchase Requirement, which is currently equal to 0.1 percent of a member’s total assets as of December 31 of the preceding calendar year, with a minimum requirement of $1,000 , and a maximum requirement of $500,000 . The amount of Class B Common Stock a member must acquire and maintain is the Activity-based Stock Purchase Requirement, which is currently equal to 4.5 percent of the principal amount of advances outstanding to the member less the member’s Asset-based Stock Purchase Requirement. There are currently no Activity-based Stock Purchase Requirements for AMA, letters of credit or derivatives. The percentages listed above are subject to change by the FHLBank within ranges established in its capital plan. Changes to the percentages outside of the capital plan percentages require the FHLBank to request FHFA approval of an amended capital plan. See Note 18 for detailed information on transactions with related parties. Any member may make a written request not in connection with a notice of withdrawal or attaining non-member status for the redemption of a part of its Class A Common Stock or all or part of its Class B Common Stock (i.e., excess stock redemption request). Within five business days of receipt of a member’s written redemption request, the FHLBank may notify the member that it declines to repurchase the excess stock before the end of that five business day period, at which time the applicable redemption period shall commence. Otherwise, the FHLBank will repurchase any excess stock within the five business day period. The redemption periods are six months for Class A Common Stock and five years for Class B Common Stock. Subject to certain limitations, the FHLBank may choose to repurchase a member’s excess stock on or before the end of the applicable redemption period. Under FHFA regulations, members that withdraw from membership may not be readmitted to membership, or acquire any capital stock of any FHLBank, for a period of five years from the date on which the institution's membership terminated and it divested all of its shares of FHLBank stock. Stock Dividends: The FHLBank’s board of directors may declare and pay non-cumulative dividends, expressed as a percentage rate per annum based upon the par value of capital stock on shares of Class A Common Stock outstanding and on shares of Class B Common Stock outstanding, out of previously unrestricted retained earnings and current earnings in either cash or Class B Common Stock. There is no dividend preference between Class A Common Stockholders and Class B Common Stockholders up to the Dividend Parity Threshold (DPT). Dividend rates in excess of the DPT may be paid on Class A Common Stock or Class B Common Stock at the discretion of the board of directors, provided, however, that the dividend rate paid per annum on the Class B Common Stock equals or exceeds the dividend rate per annum paid on the Class A Common Stock for any dividend period. The DPT can be changed at any time by the board of directors but will only be effective for dividends paid at least 90 days after the date members are notified by the FHLBank. The DPT effective for dividends paid during 2019, 2018, and 2017 was equal to the average overnight Federal funds effective rate minus 100 basis points. This DPT will continue to be effective until such time as it may be changed by the FHLBank’s board of directors. When the overnight Federal funds effective rate is below 1.00 percent, the DPT is zero percent for that dividend period (DPT is floored at zero ). The board of directors cannot declare a dividend if: (1) the FHLBank’s capital position is below its minimum regulatory capital requirements; (2) the FHLBank’s capital position will be below its minimum regulatory capital requirements after paying the dividend; (3) the principal or interest due on any consolidated obligation of the FHLBank has not been paid in full; (4) the FHLBank fails to provide the FHFA the quarterly certification prior to declaring or paying dividends for a quarter; or (5) the FHLBank fails to provide notification upon its inability to provide such certification or upon a projection that it will fail to comply with statutory or regulatory liquidity requirements or will be unable to timely and fully meet all of its current obligations. Mandatorily Redeemable Capital Stock: The FHLBank is a cooperative whose members own most of the FHLBank’s capital stock. Former members (including certain non-members that own FHLBank capital stock as a result of merger or acquisition, relocation, charter termination, or involuntary termination of an FHLBank member) own the remaining capital stock to support business transactions still carried on the FHLBank's Statements of Condition. Shares cannot be purchased or sold except between the FHLBank and its members at a price equal to the $100 per share par value. If a member cancels its written notice of redemption or notice of withdrawal, the FHLBank will reclassify mandatorily redeemable capital stock from a liability to equity. After the reclassification, dividends on the capital stock would no longer be classified as interest expense. Table 13.2 presents a roll-forward of mandatorily redeemable capital stock for the years ended December 31, 2019, 2018, and 2017 (in thousands): Table 13.2 2019 2018 2017 Balance, beginning of period $ 3,597 $ 5,312 $ 2,670 Capital stock subject to mandatory redemption reclassified from equity during the period 283,831 1,040,316 779,979 Redemption or repurchase of mandatorily redeemable capital stock during the period (285,150 ) (1,042,258 ) (777,530 ) Stock dividend classified as mandatorily redeemable capital stock during the period 137 227 193 Balance, end of period $ 2,415 $ 3,597 $ 5,312 Table 13.3 shows the amount of mandatorily redeemable capital stock by contractual year of redemption as of December 31, 2019 and 2018 (in thousands). The year of redemption in Table 13.3 is the end of the redemption period in accordance with the FHLBank’s capital plan. The FHLBank is not required to redeem or repurchase membership stock until six months (for Class A Common Stock) or five years (for Class B Common Stock) after the FHLBank receives notice for withdrawal from the member. Additionally, the FHLBank is not required to redeem or repurchase activity-based stock until any activity-based stock becomes excess stock as a result of an activity no longer remaining outstanding. However, the FHLBank intends to repurchase the excess activity-based stock of non-members to the extent that it can do so and still meet its regulatory capital requirements. Table 13.3 Contractual Year of Repurchase 12/31/2019 12/31/2018 Year 1 $ — $ — Year 2 1 — Year 3 869 1 Year 4 — 1,798 Year 5 — — Past contractual redemption date due to remaining activity 1 1,545 1,798 TOTAL $ 2,415 $ 3,597 1 Represents mandatorily redeemable capital stock that is past the end of the contractual redemption period because there is activity outstanding to which the mandatorily redeemable capital stock relates. Assuming the FHLBank did not elect to redeem a member's Class A Common Stock or Class B Common Stock within five business days of its receipt of a redemption request, a member may cancel or revoke its written redemption request prior to the end of the redemption period ( six months for Class A Common Stock and five years for Class B Common Stock) or its written notice of withdrawal from membership prior to the end of a six -month period starting on the date the FHLBank received the member’s written notice of withdrawal from membership. At the end of the six -month period, the member’s membership is terminated and the Class A Common Stock held to meet its Asset-based Stock Purchase Requirement will be redeemed by the FHLBank, as long as the FHLBank will continue to meet its regulatory capital requirements and as long as the Class A Common Stock is not needed to meet the former member’s Activity-based Stock Purchase Requirements. The FHLBank’s capital plan provides that the FHLBank will charge the member a cancellation fee in accordance with a schedule where the amount of the fee increases with the passage of time, the fee being 1.0 percent for any Class A Common Stock cancellation and starting at 1.0 percent in year one for Class B Common Stock and increasing by 1.0 percent each year to a maximum of 5.0 percent for cancellations in the fifth year for Class B Common Stock. The FHFA issued a regulatory interpretation confirming that the mandatorily redeemable capital stock accounting treatment for certain shares of FHLBank capital stock does not affect the definition of regulatory capital for purposes of determining the FHLBank’s compliance with its regulatory capital requirements, calculating its mortgage securities investment authority (various percentages of total FHLBank capital depending on the date acquired), calculating its unsecured credit exposure to other GSEs (100 percent of total FHLBank capital) or calculating its unsecured credit limits to other counterparties (various percentages of total FHLBank capital depending on the rating of the counterparty). Excess Capital Stock: Excess capital stock is defined as the amount of stock held by a member (or former member) in excess of that institution’s minimum stock purchase requirement. FHFA rules limit the ability of the FHLBank to create excess member stock under certain circumstances. For example, the FHLBank may not pay dividends in the form of capital stock or issue new excess stock to members if the FHLBank’s excess stock exceeds one percent of its total assets or if the issuance of excess stock would cause the FHLBank’s excess stock to exceed one percent of its total assets. As of December 31, 2019 , the FHLBank’s excess stock was less than one percent of total assets. Capital Classification Determination: The FHFA determines each FHLBank’s capital classification on at least a quarterly basis. If an FHLBank is determined to be other than adequately capitalized, the FHLBank becomes subject to additional supervisory authority by the FHFA. Before implementing a reclassification, the Director of the FHFA 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 review by the FHFA, the FHLBank was classified as adequately capitalized . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME Table 14.1 summarizes the changes in AOCI for the years ended December 31, 2019, 2018, and 2017 (in thousands): Table 14.1 Net Unrealized Gains (Losses) on Available-for-Sale Securities (Note 4) Net Non-Credit Portion of Other-than-temporary Impairment Gains (Losses) on Held-to-maturity Securities (Note 4) Defined Benefit Pension Plan (Note 15) Total AOCI Balance at December 31, 2016 $ 9,345 $ (5,841 ) $ (2,927 ) $ 577 Other comprehensive income (loss) before reclassification: Unrealized gains (losses) 21,861 21,861 Non-credit other-than-temporary impairment losses (61 ) (61 ) Accretion of non-credit other-than-temporary impairment loss 1,337 1,337 Net gains (losses) - defined benefit pension plan 885 885 Settlement charges - defined benefit pension plan 279 279 Reclassifications from other comprehensive income (loss) to net income: Non-credit other-than-temporary impairment to credit other-than-temporary impairment 1 402 402 Amortization of net losses - defined benefit pension plan 2 378 378 Net current period other comprehensive income (loss) 21,861 1,678 1,542 25,081 Balance at December 31, 2017 $ 31,206 $ (4,163 ) $ (1,385 ) $ 25,658 Other comprehensive income (loss) before reclassification: Unrealized gains (losses) (12,138 ) (12,138 ) Accretion of non-credit other-than-temporary impairment loss 513 513 Non-credit other-than-temporary impairment losses included in basis of securities sold 3,625 3,625 Net gains (losses) - defined benefit pension plan (2,389 ) (2,389 ) Reclassifications from other comprehensive income (loss) to net income: Non-credit other-than-temporary impairment to credit other-than-temporary impairment 1 25 25 Amortization of net losses - defined benefit pension plan 2 399 399 Net current period other comprehensive income (loss) (12,138 ) 4,163 (1,990 ) (9,965 ) Balance at December 31, 2018 $ 19,068 $ — $ (3,375 ) $ 15,693 Other comprehensive income (loss) before reclassification: Unrealized gains (losses) 7,720 7,720 Net gains (losses) - defined benefit pension plan (1,806 ) (1,806 ) Curtailment gains (losses) - defined benefit pension plan 2,845 2,845 Reclassifications from other comprehensive income (loss) to net income: Amortization of net losses - defined benefit pension plan 2 334 334 Net current period other comprehensive income (loss) 7,720 — 1,373 9,093 Balance at December 31, 2019 $ 26,788 $ — $ (2,002 ) $ 24,786 1 Recorded in “Other” non-interest income on the Statements of Income. Amount represents a debit (decrease to other income (loss)). 2 Recorded in “Other” non-interest expense on the Statements of Income. Amount represents a debit (increase to other expenses). |
Pension And Other Postretiremen
Pension And Other Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Postretirement Benefits Plans | PENSION AND POSTRETIREMENT BENEFIT PLANS Qualified Defined Benefit Multiemployer Plan: The FHLBank participates in the Pentegra Defined Benefit Plan for Financial Institutions (Pentegra Defined Benefit Plan), a tax-qualified defined benefit pension plan. The Pentegra Defined Benefit 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 Defined Benefit Plan. Under the Pentegra Defined Benefit 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. In September 2019, the FHLBank's board of directors elected to freeze the Pentegra Defined Benefit Plan on December 31, 2019, thereby discontinuing the future accrual of new benefits. Prior to the plan freeze, employees of the FHLBank who began employment prior to January 1, 2009 were eligible to participate. The Pentegra Defined Benefit Plan operates on a fiscal year from July 1 through June 30 and files one Form 5500 on behalf of all employers who participate in the plan. The Employer Identification Number is 135645888 and the three-digit plan number is 333 . There are no collective bargaining agreements in place at the FHLBank. The Pentegra Defined Benefit 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 Defined Benefit 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 Defined Benefit Plan is for the year ended June 30, 2018 . For the Pentegra Defined Benefit Plan years ended June 30, 2018 and 2017 , the FHLBank’s contributions did not represent more than five percent of the total contributions to the Pentegra Defined Benefit Plan. Table 15.1 presents the net pension cost and funded status of the FHLBank relating to the Pentegra Defined Benefit Plan (dollar amounts in thousands): Table 15.1 2019 2018 2017 Net pension cost charged to compensation and benefits expense $ 688 $ 3,528 $ 3,510 Pentegra Defined Benefit Plan funded status as of July 1 1 108.6 % 111.0 % 111.8 % FHLBank's funded status as of July 1 104.6 % 111.1 % 110.9 % 1 The funded status as of July 1, 2019 is preliminary and may increase because the plan’s participants are permitted to make contributions for the plan year ended June 30, 2019 through March 15, 2020 . Contributions made on or before March 15, 2020 , and designated for the plan year ended June 30, 2019 , will be included in the final valuation as of July 1, 2019 . The final funded status as of July 1, 2019 will not be available until the Form 5500 for the plan year July 1, 2019 through June 30, 2020 is filed (this Form 5500 is due to be filed no later than April 2021 ). The funded status as of July 1, 2018 is preliminary and may increase because the plan’s participants were permitted to make contributions for the plan year ended June 30, 2018 through March 15, 2019 . Contributions made on or before March 15, 2019 , and designated for the plan year ended June 30, 2018 , will be included in the final valuation as of July 1, 2018 . The final funded status as of July 1, 2018 will not be available until the Form 5500 for the plan year July 1, 2018 through June 30, 2019 is filed (this Form 5500 is due to be filed no later than April 2020 ). Qualified Defined Contribution Plans: The FHLBank also participated in the Pentegra Defined Contribution Plan for Financial Institutions, a tax-qualified, defined contribution pension plan. Substantially all officers and employees of the FHLBank were covered by the plan. The FHLBank contributed a matching amount equal to a percentage of voluntary employee contributions, subject to certain limitations. The FHLBank’s contributions of $1,513,000 , $1,474,000 and $1,343,000 to the Pentegra Defined Contribution Plan in 2019, 2018, and 2017 , respectively, were charged to compensation and benefits expense. Effective January 1, 2020, the FHLBank adopted the Federal Home Loan Bank of Topeka 401(k) Plan, thereby no longer participating in the Pentegra Defined Contribution Plan. Nonqualified Supplemental Retirement Plan: The FHLBank maintains a benefit equalization plan (BEP) covering certain senior officers and members of the board of directors. This non-qualified plan contains provisions for a deferred compensation component and a defined benefit pension component. In September 2019, the FHLBank's board of directors elected to freeze the defined benefit component of the BEP on December 31, 2019, thereby discontinuing the future accrual of new benefits. There are no funded plan assets that have been designated to provide for the deferred compensation component or defined benefit pension component of the BEP. The obligations of the deferred compensation component of the BEP were $6,065,000 and $5,129,000 as of December 31, 2019 and 2018 , respectively. The obligations and funding status of the defined benefit portion of the FHLBank’s BEP as of December 31, 2019 and 2018 are presented in Table 15.2 (in thousands): Table 15.2 2019 2018 Change in benefit obligation: Projected benefit obligation at beginning of year $ 14,519 $ 12,313 Service cost 236 222 Interest cost 566 506 Net (gains) losses 1,806 2,389 Benefits paid (910 ) (911 ) Curtailment (2,845 ) — Projected benefit obligation at end of year 13,372 14,519 Change in plan assets: Fair value of plan assets at beginning of year — — Employer contributions 910 911 Benefits paid (910 ) (911 ) Fair value of plan assets at end of year — — FUNDED STATUS $ (13,372 ) $ (14,519 ) Table 15.3 presents the components of the net periodic pension cost for the defined benefit portion of the FHLBank’s BEP for the years ended December 31, 2019, 2018, and 2017 (in thousands): Table 15.3 2019 2018 2017 Service cost $ 236 $ 222 $ 331 Interest cost 566 506 558 Amortization of net losses 334 399 378 Settlement charges — — 279 NET PERIODIC POSTRETIREMENT BENEFIT COST $ 1,136 $ 1,127 $ 1,546 The estimated actuarial (gain) loss that will be amortized from AOCI into net periodic pension cost over the next fiscal year is $109,000 . The measurement date used to determine the current year’s benefit obligation was December 31, 2019 . Table 15.4 presents the key assumptions and other information for the actuarial calculations for the defined benefit portion of the FHLBank’s BEP for the years ended December 31, 2019, 2018, and 2017 (dollar amounts in thousands): Table 15.4 2019 2018 2017 Discount rate - benefit obligation 3.00 % 4.00 % 3.50 % Discount rate - net periodic benefit cost 4.00 % 3.50 % 4.00 % Salary increases - benefit obligation — % 4.89 % 4.90 % Amortization period (years) - net periodic benefit cost 6 6 6 Accumulated benefit obligation $ 13,372 $ 11,105 $ 9,473 The FHLBank estimates that its required contributions to the defined benefit portion of the FHLBank’s BEP for the year ended December 31, 2020 will be $1,198,000 . The FHLBank’s estimated future benefit payments are presented in Table 15.5 (in thousands): Table 15.5 Year ending December 31, Estimated Benefit Payments 2020 $ 1,198 2021 1,211 2022 1,206 2023 1,223 2024 403 2025 through 2029 2,312 |
Fair Values
Fair Values | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Values | FAIR VALUES The fair value amounts recorded on the Statements of Condition and presented in the note disclosures have been determined by the FHLBank using available market and other pertinent information and reflect the FHLBank’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., an exit price). Although the FHLBank uses its best judgment in estimating the fair value of its financial instruments, there are inherent limitations in any valuation technique. Therefore, the fair values may not be indicative of the amounts that would have been realized in market transactions as of December 31, 2019 and 2018 . Additionally, these values do not represent an estimate of the overall market value of the FHLBank as a going concern, which would take into account future business opportunities and the net profitability of assets and liabilities. Subjectivity of Estimates: Estimates of the fair value of advances with options, mortgage instruments, derivatives with embedded options and consolidated obligation bonds with options 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, methods to determine 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 Hierarchy: The fair value hierarchy requires the FHLBank to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The inputs are evaluated and an overall level for the fair value measurement is determined. This overall level is an indication of the market observability of the fair value measurement for the asset or liability. The FHLBank must disclose the level within the fair value hierarchy in which the measurements are classified for all assets and liabilities. 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 active markets that the FHLBank can access on the measurement date. An active market for the 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: (1) quoted prices for similar assets and liabilities in active markets; (2) quoted prices for similar assets and liabilities in markets that are not active; (3) 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 (4) inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 Inputs – Unobservable inputs for the asset or liability. The FHLBank 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. There were no transfers of assets or liabilities between fair value levels during the years ended December 31, 2019 and 2018 . Tables 16.1 and 16.2 present the carrying value, fair value and fair value hierarchy of financial assets and liabilities as of December 31, 2019 and 2018 . The FHLBank records trading securities, available-for-sale securities, derivative assets, and derivative liabilities at fair value on a recurring basis, and on occasion certain mortgage loans held for portfolio and certain other assets at fair value on a nonrecurring basis. The FHLBank measures all other financial assets and liabilities at amortized cost. Further details about the financial assets and liabilities held at fair value on either a recurring or non-recurring basis are presented in Tables 16.3 and 16.4 . The carrying value, fair value and fair value hierarchy of the FHLBank’s financial assets and liabilities as of December 31, 2019 and 2018 are summarized in Tables 16.1 and 16.2 (in thousands): Table 16.1 12/31/2019 Carrying Value Total Fair Value Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Assets: Cash and due from banks $ 1,917,166 $ 1,917,166 $ 1,917,166 $ — $ — $ — Interest-bearing deposits 921,453 921,453 — 921,453 — — Securities purchased under agreements to resell 4,750,000 4,750,000 — 4,750,000 — — Federal funds sold 850,000 850,000 — 850,000 — — Trading securities 2,812,562 2,812,562 — 2,812,562 — — Available-for-sale securities 7,182,500 7,182,500 — 7,182,500 — — Held-to-maturity securities 3,569,958 3,556,938 — 3,476,084 80,854 — Advances 30,241,315 30,295,813 — 30,295,813 — — Mortgage loans held for portfolio, net of allowance 10,633,009 10,983,356 — 10,981,458 1,898 — Accrued interest receivable 143,765 143,765 — 143,765 — — Derivative assets 154,804 154,804 — 24,810 — 129,994 Liabilities: Deposits 790,640 790,640 — 790,640 — — Consolidated obligation discount notes 27,447,911 27,448,021 — 27,448,021 — — Consolidated obligation bonds 32,013,314 32,103,154 — 32,103,154 — — Mandatorily redeemable capital stock 2,415 2,415 2,415 — — — Accrued interest payable 117,580 117,580 — 117,580 — — Derivative liabilities 202 202 — 106,708 — (106,506 ) Other Asset (Liability): Industrial revenue bonds 35,000 34,850 — 34,850 — — Financing obligation payable (35,000 ) (34,850 ) — (34,850 ) — — 1 Represents the effect of legally enforceable master netting agreements that allow the FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty . Table 16.2 12/31/2018 Carrying Value Total Fair Value Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Assets: Cash and due from banks $ 15,060 $ 15,060 $ 15,060 $ — $ — $ — Interest-bearing deposits 670,660 670,660 — 670,660 — — Securities purchased under agreements to resell 1,251,096 1,251,096 — 1,251,096 — — Federal funds sold 50,000 50,000 — 50,000 — — Trading securities 2,151,113 2,151,113 — 2,151,113 — — Available-for-sale securities 1,725,640 1,725,640 — 1,725,640 — — Held-to-maturity securities 4,456,873 4,447,078 — 4,364,127 82,951 — Advances 28,730,113 28,728,201 — 28,728,201 — — Mortgage loans held for portfolio, net of allowance 8,410,462 8,388,885 — 8,387,425 1,460 — Accrued interest receivable 109,366 109,366 — 109,366 — — Derivative assets 36,095 36,095 — 88,472 — (52,377 ) Liabilities: Deposits 473,820 473,820 — 473,820 — — Consolidated obligation discount notes 20,608,332 20,606,743 — 20,606,743 — — Consolidated obligation bonds 23,966,394 23,727,705 — 23,727,705 — — Mandatorily redeemable capital stock 3,597 3,597 3,597 — — — Accrued interest payable 87,903 87,903 — 87,903 — — Derivative liabilities 7,884 7,884 — 41,502 — (33,618 ) Other Asset (Liability): Industrial revenue bonds 35,000 32,154 — 32,154 — — Financing obligation payable (35,000 ) (32,154 ) — (32,154 ) — — 1 Represents the effect of legally enforceable master netting agreements that allow the FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty. Fair Value Methodologies and Techniques and Significant Inputs: The valuation methodologies 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 nonrecurring basis in the Statements of Condition are listed below. The fair values and level within the fair value hierarchy of these assets and liabilities are reported in Tables 16.3 and 16.4 . Investment Securities: For long-term (as determined by original issuance date) investment securities, the FHLBank obtains prices from multiple designated third-party pricing vendors when available. The pricing vendors use various proprietary models to price investments. The inputs to those models are derived from various sources including, but not limited to: benchmark yields, reported trades, dealer estimates, issuer spreads, benchmark securities, bids, offers and other market‑related data. Since many MBS are not traded daily, 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 challenge process in place for all valuations, which facilitates resolution of potentially erroneous prices identified by the FHLBank. The use of multiple pricing vendors provides the FHLBank with additional data points regarding levels of inputs and final prices that are used to validate final pricing of investment securities. The utilization of the average of available vendor prices within a cluster tolerance and the evaluation of reasonableness of outlier prices described below does not discard available information. Annually, the FHLBank conducts reviews of the multiple pricing vendors to confirm and further augment its understanding of the vendors’ pricing processes, methodologies and control procedures. The FHLBank’s review process includes obtaining available vendors’ independent auditors’ reports regarding the internal controls over their valuation process, although the availability of pertinent reports varies by vendor. The FHLBank utilizes a valuation technique for estimating the fair values of long-term investment securities as follows: ▪ The FHLBank’s valuation technique first requires the establishment of a median price for each security. If three prices are received, the middle price is used; if two prices are received, the average of the two prices is used; and if one price is received, it is used subject to validation. ▪ 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. ▪ 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. ▪ If, on the other hand, 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. ▪ If all prices received for a security are outside the tolerance threshold level of the median price, then there is no default price, and the final price is determined by an evaluation of all outlier prices as described above. As of December 31, 2019 , multiple prices were received for all of the FHLBank’s long-term investment securities with all vendor prices falling within the tolerances so the final prices for those securities were computed by averaging the prices received. Based on the FHLBank’s reviews of the pricing methods and controls employed by the third-party pricing vendors and the relative lack of dispersion among the vendor prices, the FHLBank has concluded that its final prices result in reasonable estimates of fair value and that the fair value measurements are classified appropriately in the fair value hierarchy. Impaired Mortgage Loans Held for Portfolio and Real Estate Owned: The estimated fair values of impaired mortgage loans held for portfolio and REO on a nonrecurring basis are generally based on broker prices or property values obtained from a third-party pricing vendor. All estimated fair values of impaired mortgage loans held for portfolio and REO are net of any estimated selling costs. Derivative Assets/Liabilities: The FHLBank bases the fair values of derivatives on instruments with similar terms or market prices, when available. However, active markets do not exist for many of the FHLBank’s derivatives. Consequently, fair values for these instruments are generally estimated using standard valuation techniques such as discounted cash flow analysis and comparisons to similar instruments. The FHLBank is subject to credit risk due to the risk of nonperformance by counterparties to its derivative transactions. For uncleared derivatives, the degree of credit risk depends on the extent to which master netting arrangements are included in these contracts to mitigate the risk. In addition, the FHLBank requires collateral agreements with collateral delivery thresholds on all of its uncleared derivatives. The use of cleared derivatives is intended to mitigate credit risk exposure because a central counterparty is substituted for individual counterparties and collateral is posted daily through a clearing agent for changes in the value of cleared derivatives. The FHLBank has evaluated the potential for the fair value of the instruments to be impacted by counterparty credit risk and its own credit risk and has determined that no adjustments were significant or necessary to the overall fair value measurements of derivatives. The fair values of the FHLBank’s derivative assets and liabilities include accrued interest receivable/payable and 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. Derivatives are presented on a net basis by clearing agent by Clearinghouse or by counterparty when it has met the netting requirements. If these netted amounts are positive, they are classified as an asset and, if negative, a liability. The discounted cash flow model uses market-observable inputs. Inputs by class of derivative are as follows: ▪ Interest-rate related: • Discount rate assumption - OIS curve; • Forward interest rate assumption for rate resets - swap curve of index rate of the instrument (e.g., LIBOR, SOFR or Fed Funds Effective Rate); • Volatility assumptions - market-based expectations of future interest rate volatility implied from current market prices for similar options; and • Prepayment assumptions. ▪ Mortgage delivery commitments: • To be announced (TBA) price - market-based prices of TBAs by coupon class and expected term until settlement. Fair Value Measurements: Tables 16.3 and 16.4 present, for each hierarchy level, the FHLBank’s assets and liabilities that are measured at fair value on a recurring or nonrecurring basis on the Statements of Condition as of or for the periods ended December 31, 2019 and 2018 (in thousands). Table 16.3 12/31/2019 Total Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Recurring fair value measurements - Assets: Trading securities: U.S. Treasury obligations $ 1,530,518 $ — $ 1,530,518 $ — $ — GSE obligations 416,025 — 416,025 — — GSE MBS 866,019 — 866,019 — — Total trading securities 2,812,562 — 2,812,562 — — Available-for-sale securities: U.S. Treasury obligations 4,261,791 — 4,261,791 — — GSE MBS 2,920,709 — 2,920,709 — — Total available-for-sale securities 7,182,500 — 7,182,500 — — Derivative assets: Interest-rate related 154,309 — 24,315 — 129,994 Mortgage delivery commitments 495 — 495 — — Total derivative assets 154,804 — 24,810 — 129,994 TOTAL RECURRING FAIR VALUE MEASUREMENTS - ASSETS $ 10,149,866 $ — $ 10,019,872 $ — $ 129,994 Recurring fair value measurements - Liabilities: Derivative liabilities: Interest-rate related $ 177 $ — $ 106,683 $ — $ (106,506 ) Mortgage delivery commitments 25 — 25 — — Total derivative liabilities 202 — 106,708 — (106,506 ) TOTAL RECURRING FAIR VALUE MEASUREMENTS - LIABILITIES $ 202 $ — $ 106,708 $ — $ (106,506 ) Nonrecurring fair value measurements - Assets 2 : Impaired mortgage loans $ 1,909 $ — $ — $ 1,909 $ — Real estate owned 144 — — 144 — TOTAL NONRECURRING FAIR VALUE MEASUREMENTS - ASSETS $ 2,053 $ — $ — $ 2,053 $ — 1 Represents the effect of legally enforceable master netting agreements that allow the FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty. 2 Includes assets adjusted to fair value during the year ended December 31, 2019 and still outstanding as of December 31, 2019 . Table 16.4 12/31/2018 Total Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Recurring fair value measurements - Assets: Trading securities: U.S. Treasury obligations $ 252,377 $ — $ 252,377 $ — $ — GSE obligations 1,000,495 — 1,000,495 — — U.S. obligation MBS 467 — 467 — — GSE MBS 897,774 — 897,774 — — Total trading securities 2,151,113 — 2,151,113 — — Available-for-sale securities: GSE MBS 1,725,640 — 1,725,640 — — Total available-for-sale securities 1,725,640 — 1,725,640 — — Derivative assets: Interest-rate related 35,543 — 87,920 — (52,377 ) Mortgage delivery commitments 552 — 552 — — Total derivative assets 36,095 — 88,472 — (52,377 ) TOTAL RECURRING FAIR VALUE MEASUREMENTS - ASSETS $ 3,912,848 $ — $ 3,965,225 $ — $ (52,377 ) Recurring fair value measurements - Liabilities: Derivative liabilities: Interest-rate related $ 7,881 $ — $ 41,499 $ — $ (33,618 ) Mortgage delivery commitments 3 — 3 — — Total derivative liabilities 7,884 — 41,502 — (33,618 ) TOTAL RECURRING FAIR VALUE MEASUREMENTS - LIABILITIES $ 7,884 $ — $ 41,502 $ — $ (33,618 ) Nonrecurring fair value measurements - Assets 2 : Impaired mortgage loans $ 1,463 $ — $ — $ 1,463 $ — Real estate owned 1,028 — — 1,028 — TOTAL NONRECURRING FAIR VALUE MEASUREMENTS - ASSETS $ 2,491 $ — $ — $ 2,491 $ — 1 Represents the effect of legally enforceable master netting agreements that allow the FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty. 2 Includes assets adjusted to fair value during the year ended December 31, 2018 and still outstanding as of December 31, 2018 . |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES Joint and Several Liability: As provided in the Bank Act or in FHFA regulations, consolidated obligations are backed only by the financial resources of the FHLBanks. FHLBank Topeka is jointly and severally liable with the other FHLBanks for the payment of principal and interest on all of the consolidated obligations issued by the FHLBanks. The par amounts for which FHLBank Topeka is jointly and severally liable were approximately $966,413,924,000 and $986,994,515,000 as of December 31, 2019 and 2018 , respectively. The joint and several obligations are mandated by FHFA regulations and are not the result of arms-length transactions among the FHLBanks. As described above, the FHLBanks have no control over the amount of the guaranty or the determination of how each FHLBank would perform under the joint and several liability. Because the FHLBanks are subject to the authority of the FHFA as it relates to decisions involving the allocation of the joint and several liability for all FHLBanks' consolidated obligations, FHLBank Topeka regularly monitors the financial condition of the other FHLBanks to determine whether it should expect a loss to arise from its joint and several obligations. If the FHLBank were to determine that a loss was probable and the amount of the loss could be reasonably estimated, the FHLBank would charge to income the amount of the expected loss. Based upon the creditworthiness of the other FHLBanks as of December 31, 2019 , FHLBank Topeka has concluded that a loss accrual is not necessary at this time. Off-balance Sheet Commitments: As of December 31, 2019 and 2018 , off-balance sheet commitments are presented in Table 17.1 (in thousands): Table 17.1 12/31/2019 12/31/2018 Notional Amount Expire Within One Year Expire After One Year Total Expire Within One Year Expire After One Year Total Standby letters of credit outstanding $ 4,764,724 $ 4,335 $ 4,769,059 $ 3,824,497 $ 37,933 $ 3,862,430 Advance commitments outstanding 64,282 15,693 79,975 116,475 43,782 160,257 Commitments for standby bond purchases — 701,392 701,392 69,277 686,602 755,879 Commitments to fund or purchase mortgage loans 221,800 — 221,800 101,551 — 101,551 Commitments to issue consolidated discount notes, at par 411,161 — 411,161 1,825,000 — 1,825,000 Commitments to Extend Credit: The FHLBank issues standby letters of credit on behalf of its members to support certain obligations of the members to third-party beneficiaries. These standby letters of credit are subject to the same collateralization and borrowing limits that are applicable to advances and are fully collateralized with assets allowed by the FHLBank’s MPP. Standby letters of credit may be offered to assist members 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 for members for a fee. If the FHLBank is required to make payment for a beneficiary's draw, the member either reimburses the FHLBank for the amount drawn or, subject to the FHLBank's discretion, the amount drawn may be converted into a collateralized advance to the member. However, standby letters of credit usually expire without being drawn upon. Outstanding standby letters of credit have original or extended expiration periods of up to 6 years. The FHLBank's current outstanding standby letters of credit expire no later than 2024 . Unearned fees as well as the value of the guarantees related to standby letters of credit are recorded in other liabilities and amounted to $1,470,000 and $1,296,000 as of December 31, 2019 and 2018 , respectively. Advance commitments legally bind and unconditionally obligate the FHLBank for additional advances up to 24 months in the future. Based upon management’s credit analysis of members and collateral requirements under the MPP, the FHLBank does not expect to incur any credit losses on the outstanding letters of credit or advance commitments. Standby Bond-Purchase Agreements: The FHLBank has entered into standby bond purchase agreements with state housing authorities whereby the FHLBank, for a fee, agrees to purchase and hold the authorities’ bonds until the designated marketing agent can find a suitable investor or the housing authority repurchases the bond according to a schedule established by the standby agreement. Each standby agreement dictates the specific terms that would require the FHLBank to purchase the bond. The bond purchase commitments entered into by the FHLBank expire no later than 2022 , though some are renewable at the option of the FHLBank. As of December 31, 2019 and 2018 , the total commitments for bond purchases included agreements with two in-district state housing authorities. The FHLBank was not required to purchase any bonds under any agreements during the years ended December 31, 2019 and 2018 . Commitments to Purchase Mortgage Loans: These commitments that unconditionally obligate the FHLBank to purchase mortgage loans from participating FHLBank Topeka members in the MPF Program are generally for periods not to exceed 60 calendar days. Certain commitments are recorded as derivatives at their fair values on the Statements of Condition. The FHLBank recorded mortgage delivery commitment net derivative asset (liability) balances of $470,000 and $549,000 as of December 31, 2019 and 2018 , respectively. Commitments to Issue Consolidated Obligations: The FHLBank enters into commitments to issue consolidated obligation bonds and discount notes outstanding in the normal course of its business. Most settle within the shortest period possible and are considered regular way trades; however, certain commitments are recorded as derivatives at their fair values on the Statements of Condition. Other Commitments: On June 28, 2017 , the FHLBank completed an industrial revenue bond financing transaction with Shawnee County, Kansas (County) that will provide property tax savings for 10 years on the FHLBank's new headquarters. In the transaction, the County acquired an interest in the land, improvements, building and equipment (collectively, the Project) by issuing up to $36,000,000 of industrial revenue bonds due December 31, 2027 (IRBs) and leased the Project to the FHLBank for an identical 127 -month term under a financing lease. The IRBs are collateralized by the Project and the lease revenues for the related leasing transaction with the County. The IRBs were purchased by the FHLBank. The County assigned the lease to the bond trustee for the FHLBank's benefit as the sole holder of the IRBs. The FHLBank can prepay the IRBs at any time, but would forfeit its property tax benefit in the event the IRBs were to be prepaid. As a result, the land and building will remain a component of the property, plant and equipment in the FHLBank's statement of financial condition. The IRBs and the equivalent liability are included in the FHLBank's statement of financial condition in other assets and other liabilities, respectively. The FHLBank, as holder of the IRBs, is due interest at 2.0 percent per annum with interest payable annual ly in arrears on December 1, beginning December 1, 2018 . This interest income is directly offset by the financing interest expense payments on the land and building, which are due at the same time and in the same amount as the interest income. As of December 31, 2019 and 2018 , $35,000,000 of the IRBs were issued and outstanding. Safekeeping Custodial Arrangements: The FHLBank acts as a securities safekeeping custodian on behalf of participating members. Actual securities are held by a third-party custodian acting as agent for the FHLBank. As of December 31, 2019 , the total original par value of customer securities held by the FHLBank under this arrangement was $53,657,170,000 . Other commitments and contingencies are discussed in Notes 1 , 5 , 6 , 7 , 8 , 10 , 11 , 13 and 15 . |
Transactions With Stockholders
Transactions With Stockholders | 12 Months Ended |
Dec. 31, 2019 | |
Federal Home Loan Banks [Abstract] | |
Transactions With Stockholders | TRANSACTIONS WITH STOCKHOLDERS The FHLBank is a cooperative whose members own most of the capital stock of the FHLBank and generally receive dividends on their investments. In addition, certain former members that still have outstanding transactions are also required to maintain their investments in FHLBank capital stock until the transactions mature or are paid off. Nearly all outstanding advances are with current members, and the majority of outstanding mortgage loans held for portfolio were purchased from current or former members. The FHLBank also maintains demand deposit accounts for members primarily to facilitate settlement activities that are directly related to advances and mortgage loan purchases. Transactions with members are entered into in the ordinary course of business. In instances where members also have officers or directors who are directors of the FHLBank, transactions with those members are subject to the same eligibility and credit criteria, as well as the same terms and conditions, as other transactions with members. For financial reporting and disclosure purposes, the FHLBank defines related parties as FHLBank directors’ financial institutions and members with capital stock investments in excess of 10 percent of the FHLBank’s total regulatory capital stock outstanding, which includes mandatorily redeemable capital stock. Activity with Members that Exceed a 10 Percent Ownership in FHLBank Capital Stock: Tables 18.1 and 18.2 present information on members that owned more than 10 percent of outstanding FHLBank regulatory capital stock as of December 31, 2019 and 2018 (dollar amounts in thousands). None of the officers or directors of these members currently serve on the FHLBank’s board of directors. Table 18.1 12/31/2019 Member Name State Total Class A Stock Par Value Percent of Total Class A Total Class B Stock Par Value Percent of Total Class B Total Capital Stock Par Value Percent of Total Capital Stock MidFirst Bank OK $ 500 0.1 % $ 385,825 29.2 % $ 386,325 21.8 % BOKF, N.A. OK 184,282 41.0 202,000 15.3 386,282 21.8 TOTAL $ 184,782 41.1 % $ 587,825 44.5 % $ 772,607 43.6 % Table 18.2 12/31/2018 Member Name State Total Class A Stock Par Value Percent of Total Class A Total Class B Stock Par Value Percent of Total Class B Total Capital Stock Par Value Percent of Total Capital Stock BOKF, N.A. OK $ 24,006 9.6 % $ 274,000 21.4 % $ 298,006 19.5 % MidFirst Bank OK 500 0.2 294,700 23.0 295,200 19.3 TOTAL $ 24,506 9.8 % $ 568,700 44.4 % $ 593,206 38.8 % Advance and deposit balances with members that owned more than 10 percent of outstanding FHLBank regulatory capital stock as of December 31, 2019 and 2018 are summarized in Table 18.3 (dollar amounts in thousands). Table 18.3 12/31/2019 12/31/2018 12/31/2019 12/31/2018 Member Name Outstanding Advances Percent of Total Outstanding Advances Percent of Total Outstanding Deposits Percent of Total Outstanding Deposits Percent of Total MidFirst Bank $ 8,585,000 28.5 % $ 6,560,000 22.8 % $ 1,030 0.1 % $ 331 0.1 % BOKF, N.A. 4,500,000 14.9 6,100,000 21.2 22,457 2.9 29,288 6.2 TOTAL $ 13,085,000 43.4 % $ 12,660,000 44.0 % $ 23,487 3.0 % $ 29,619 6.3 % For the year ended December 31, 2019, BOKF, N.A. sold $6,748,000 of mortgage loans into the MPF Program. BOKF, N.A. did not sell any mortgage loans into the MPF Program during the year ended December 31, 2018. MidFirst Bank did not sell any mortgage loans into the MPF Program during the years ended December 31, 2019 and 2018. Transactions with FHLBank Directors’ Financial Institutions: Table 18.4 presents information as of December 31, 2019 and 2018 for members that had an officer or director serving on the FHLBank’s board of directors (dollar amounts in thousands). Information is only included for the period in which the officer or director served on the FHLBank’s board of directors. Capital stock listed is regulatory capital stock, which includes mandatorily redeemable capital stock. Table 18.4 12/31/2019 12/31/2018 Outstanding Amount Percent of Total Outstanding Amount Percent of Total Advances $ 178,945 0.6 % $ 157,012 0.5 % Deposits $ 15,748 2.0 % $ 9,679 2.1 % Class A Common Stock $ 6,467 1.4 % $ 4,179 1.7 % Class B Common Stock 5,571 0.4 4,924 0.4 TOTAL CAPITAL STOCK $ 12,038 0.7 % $ 9,103 0.6 % Table 18.5 presents mortgage loans acquired during the years ended December 31, 2019 and 2018 for members that had an officer or director serving on the FHLBank’s board of directors in 2019 or 2018 (dollar amounts in thousands). Information is only included for the period in which the officer or director served on the FHLBank’s board of directors. Table 18.5 2019 2018 Amount Percent of Total Amount Percent of Total Mortgage loans acquired $ 189,724 4.9 % $ 104,360 5.1 % |
Transactions With Other FHLBank
Transactions With Other FHLBanks | 12 Months Ended |
Dec. 31, 2019 | |
Federal Home Loan Banks [Abstract] | |
Transactions With Other Fhlbanks | TRANSACTIONS WITH OTHER FHLBANKS FHLBank Topeka had the following business transactions with other FHLBanks during the years ended December 31, 2019, 2018, and 2017 as presented in Table 19.1 (in thousands). All transactions occurred at market prices. Table 19.1 Business Activity 2019 2018 2017 Average overnight interbank loan balances to other FHLBanks 1 $ 2,529 $ 1,466 $ 4,534 Average overnight interbank loan balances from other FHLBanks 1 8,082 3,562 1,247 Average deposit balances with FHLBank of Chicago for interbank transactions 2 1,361 1,256 1,429 Transaction charges paid to FHLBank of Chicago for transaction service fees 3 6,938 5,687 4,854 Par amount of purchases of consolidated obligations issued on behalf of other FHLBanks 4 — — — _________ 1 Occasionally, the FHLBank loans (or borrows) short-term funds to (from) other FHLBanks. Interest income on loans to other FHLBanks is included in Other Interest Income and interest expense on borrowings from other FHLBanks is included in Other Interest Expense on the Statements of Income. 2 Balances are interest bearing and are classified on the Statements of Condition as interest-bearing deposits. 3 Fees are calculated monthly based on outstanding loans at the per annum rate in effect at origination. 4 Purchases of consolidated obligations issued on behalf of one FHLBank and purchased by the FHLBank occur at market prices with third parties and are accounted for in the same manner as similarly classified investments. Outstanding fair value balances totaling $111,173,000 and $108,242,000 as of December 31, 2019 and 2018 , respectively, are included in the non-MBS GSE obligations totals presented in Note 4 . Interest income earned on these securities totaled $3,429,000 , $3,429,000 , and $5,817,000 for the years ended December 31, 2019, 2018, and 2017 , respectively. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation, Policy | Basis of Presentation: The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). |
Reclassification, Policy | Reclassifications : Presentation of cash flow amounts in the prior period have been reclassified to reflect short-term trading securities purchases and proceeds on a gross, rather than net, basis. Certain other immaterial amounts in the financial statements have been reclassified to conform to current period presentations. |
Use Of Estimates, Policy | Use of Estimates : The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions as of the date of the financial statements in determining the reported amounts of assets, liabilities and estimated fair values and in determining the disclosure of any contingent assets or liabilities. Estimates and assumptions by management also affect the reported amounts of income and expense during the reporting period. The most significant of these estimates include the fair value of trading and available-for-sale securities and the fair value of derivatives. Many of the estimates and assumptions, including those used in financial models, are based on financial market conditions as of the date of the financial statements. Because of the volatility of the financial markets, as well as other factors that affect management estimates, actual results may vary from these estimates. |
Fair Value Measurement, Policy | Fair Values: The fair value amounts, recorded on the Statements of Condition and presented in the note disclosures for the periods presented, have been determined by the FHLBank using available market and other pertinent information and reflect the FHLBank’s best judgment of appropriate valuation methods. Although the FHLBank uses its best judgment in estimating the fair value of these 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 16 for more information. |
Derivatives, Offsetting Fair Value Amounts, Policy | Financial Instruments Meeting Netting Requirements: The FHLBank presents certain financial instruments, including derivatives, repurchase agreements and securities purchased under agreements to resell, on a net basis when it has a legal right of offset and all other requirements for netting are met (collectively referred to as the netting requirements). For these financial instruments, the FHLBank has elected to offset its asset and liability positions, as well as cash collateral received or pledged, when it has met the netting requirements. The net exposure for these financial instruments can change on a daily basis; 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 netting requirements, any excess cash collateral received or pledged is recognized as a derivative liability or derivative asset. See Notes 8 and 12 for additional information. The FHLBank presents certain financial instruments, including derivatives, repurchase agreements and securities purchased under agreements to resell, on a net basis by clearing agent by Clearinghouse, or by counterparty, when it has met the netting requirements. For these financial instruments, the FHLBank has elected to offset its asset and liability positions, as well as cash collateral received or pledged, and associated accrued interest. The FHLBank has analyzed the enforceability of offsetting rights incorporated in its cleared derivative transactions and 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 clearing agent, or both. Based on this analysis, the FHLBank presents a net derivative receivable or payable for all of its transactions through a particular clearing agent with a particular Clearinghouse. |
Cash and Cash Equivalents, Policy | Cash Flows: For purposes of the Statements of Cash Flows, the FHLBank considers cash on hand and non-interest-bearing deposits in banks as cash and cash equivalents. |
Investment, Policy | Interest-bearing Deposits, Securities Purchased Under Agreements to Resell and Federal Funds Sold: Interest-bearing deposits, securities purchased under agreements to resell and Federal funds sold provide short-term liquidity and are carried at cost. The FHLBank treats securities purchased under agreements to resell as short-term collateralized loans, which are classified as assets on the Statements of Condition. If the fair value of the underlying securities decreases below the fair value required as collateral, the counterparty has the option to: (1) place an equivalent amount of additional securities in safekeeping in the FHLBank’s name; or (2) remit an equivalent amount of cash; otherwise, the dollar value of the resale agreement will be decreased accordingly. Federal funds sold consist of short-term unsecured loans generally transacted with counterparties that are considered by the FHLBank to be of investment quality. Investment Securities: The FHLBank classifies investments as trading, available-for-sale and held-to-maturity at the date of acquisition. Purchases and sales of securities are recorded on a trade date basis. Trading: Securities classified as trading are either: (1) held for liquidity purposes; (2) economically swapped and classified as trading to provide a fair value offset to the gains (losses) on the interest rate swaps tied to the securities; or (3) acquired as asset/liability management tools and carried at fair value. The FHLBank records changes in the fair value of these securities through other income (loss) as net gains (losses) on trading securities. FHFA regulation and the FHLBank’s Risk Management Policy (RMP) prohibit trading in or the speculative use of these instruments and limits credit risk arising from these instruments. While the FHLBank classifies certain securities as trading for financial reporting purposes, it does not actively trade any of these securities with the intent of realizing gains and holds these investments indefinitely as management periodically evaluates its asset/liability and liquidity needs. Short-term money market investments with maturities of three months or less are acquired and classified as trading securities primarily for liquidity purposes. These short-term money market investments are periodically sold to meet the FHLBank’s cash flow needs. The FHLBank might also sell mortgage-backed securities (MBS) held in its trading portfolio to reduce its London Interbank Offered Rate (LIBOR) exposure. Available-for-Sale: Securities that are not classified as trading or held-to-maturity are classified as available-for-sale and are carried at fair value. The change in fair value of available-for-sale securities is recorded in other comprehensive income (loss) (OCI) as net unrealized gains (losses) on available-for-sale securities. Beginning January 1, 2019, the FHLBank adopted new hedge accounting guidance, which, among other things, impacts the presentation of gains (losses) on derivatives and hedging activities for qualifying hedges, including fair value hedges of available-for-sale securities. For available-for-sale securities in hedge relationships that qualify as fair value hedges, the FHLBank records the portion of the change in the fair value of the investment related to the risk being hedged in available-for-sale interest income together with the related change in the fair value of the derivative, and records the remainder of the change in the fair value of the investment in OCI as net unrealized gains (losses) on available-for-sale securities. Prior to January 1, 2019, for available-for-sale securities in hedge relationships that qualified as fair value hedges, the FHLBank recorded the portion of the change in the fair value of the investment related to the risk being hedged in non-interest income as net gains (losses) on derivatives and hedging activities together with the related change in the fair value of the derivative, and recorded the remainder of the change in the fair value of the investment in OCI as net unrealized gains (losses) on available-for-sale securities. Held-to-Maturity: Securities that the FHLBank has both the ability and intent to hold to maturity are classified as held-to-maturity and are carried at cost, adjusted for periodic principal repayments, amortization of premiums, and accretion of discounts. Certain changes in circumstances may cause the FHLBank 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, including: (1) evidence of a significant deterioration in the issuer’s creditworthiness; (2) a change in statutory or regulatory requirements significantly modifying either what constitutes a permissible investment or the maximum level of investments in certain kinds of investments, thereby causing the FHLBank to dispose of a held-to-maturity investment; (3) a significant increase by a regulator in the FHLBank’s capital requirements that causes the FHLBank to downsize by selling held-to-maturity investments; or (4) a significant increase in the risk weights of debt securities used for regulatory risk-based capital purposes. The FHLBank considers the following situations to be a maturity for purposes of assessing ability and intent to hold to maturity: ▪ The sale of the security is near enough to maturity (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 ▪ The sale of a security occurs after the FHLBank has already collected a substantial portion (at least 85 percent) of the principal outstanding at acquisition either due to prepayments on the debt security or to scheduled payments on a debt security payable in equal installments (both principal and interest) over its term. Premiums and Discounts: The FHLBank computes the amortization of purchased premiums and accretion of purchased discounts on MBS using the level-yield method over the estimated cash flows of the securities. This method requires a retrospective adjustment of the effective yield each time the FHLBank receives a principal repayment or changes the estimated remaining cash flows as if the actual principal repayments and new estimated cash flows had been known since the original acquisition dates of the securities. The FHLBank computes the amortization of premiums and accretion of discounts on other investments using the level-yield method to the contractual maturities of the securities. Gains and Losses on Sales: Gains and losses on the sales of investment securities are computed using the specific identification method and are included in other income (loss). |
Federal Home Loan Bank Advances, Policy | Advances: The FHLBank presents advances (secured loans to members, former members or housing associates) net of unearned commitment fees, premiums, discounts and fair value basis adjustments. The FHLBank amortizes the premiums and accretes the discounts on advances to interest income using the level-yield method. The FHLBank records interest on advances to interest income as earned. Advance Modifications: In cases in which the FHLBank funds a new advance concurrently with or within a short period of time before or after the prepayment of an existing advance, the FHLBank 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 FHLBank 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 10 percent difference in the cash flows or if the FHLBank concludes the differences between the advances are more than minor based on qualitative factors, the advance is accounted for as a new advance. In all other instances, the new advance is accounted for as a modification. Prepayment Fees: The FHLBank charges a borrower a prepayment fee when the borrower prepays certain advances before the original maturity. The FHLBank records prepayment fees net of basis adjustments related to hedging activities included in the carrying value of the advance as advance interest income in the Statements of Income. If a new advance does not qualify as a modification of an existing advance, the existing advance is treated as an advance termination and any prepayment fee, net of hedging adjustments, is recorded to advance interest income in the Statements of Income. If a new advance qualifies as a modification of an existing advance, any prepayment fee, net of hedging adjustments, is deferred, recorded in the basis of the modified advance, and amortized using a level-yield methodology over the life of the modified advance to advance interest income. If the modified advance is hedged and meets hedge accounting requirements, the modified advance is marked to benchmark or full fair value, depending on the risk being hedged, and subsequent fair value changes that are attributable to the hedged risk are recorded in advance interest income effective January 1, 2019. Prior to January 1, 2019, subsequent fair value changes were recorded in non-interest income as net gains (losses) on derivatives and hedging activities. |
Finance, Loan and Lease Receivables, Held-for-investment, Policy | Mortgage Loans Held for Portfolio: The FHLBank carries mortgage loans classified as held for investment at their principal amount outstanding, net of unamortized premiums, unaccreted discounts, deferred loan fees associated with table funded loans, hedging adjustments, unrealized gains and losses from mortgage purchase commitments, charge-offs, and other fees. The FHLBank has the intent and ability to hold these mortgage loans to maturity. Premiums and Discounts: The FHLBank defers and amortizes/accretes mortgage loan origination fees (agent fees) and premiums and discounts paid to and received from participating financial institutions (PFI) as interest income using the level-yield method over the contractual lives of the loans. This method uses the cash flows required by the loan contracts, as adjusted for actual prepayments, to apply the interest method. The contractual method does not utilize estimates of future prepayments of principal. Credit Enhancement Fees: The credit enhancement obligation (CE obligation) is an obligation on the part of the PFI that ensures the retention of credit risk on loans it originates on behalf of or sells to the FHLBank. The amount of the CE obligation is determined at the time of purchase so that any losses in excess of the CE obligation for each pool of mortgage loans purchased approximate those experienced by an investor in either a double-A or triple-B rated MBS. As a part of the methodology used to determine the amount of credit enhancement necessary, the FHLBank analyzes the risk characteristics of each mortgage loan using a model licensed from a Nationally Recognized Statistical Rating Organization (NRSRO). The FHLBank uses the model to evaluate loan data provided by the PFI as well as other relevant information. The FHLBank pays the PFI a credit enhancement fee (CE fee) for managing this portion of the credit risk in the pool of loans. CE fees are paid monthly based on the remaining unpaid principal balance (UPB) of the loans in a master commitment, or a one-time upfront CE fee is paid at purchase. The upfront CE fee is based upon the present value of the monthly CE fee payments, with consideration for expected prepayments, and amortized as interest income using the level-yield method over the contractual lives of the loans. The required CE obligation amount may vary depending on the various product alternatives selected by the PFI. CE fees are recorded as an offset to mortgage loan interest income. To the extent the FHLBank experiences a loss in a master commitment, the FHLBank may be able to recapture future performance-based CE fees paid to the PFIs to offset these losses. Other Fees: The FHLBank may receive other non-origination fees, such as delivery commitment extension fees and pair-off fees as part of the mark-to-market on derivatives to which they are related or as part of the loan basis, as applicable. Delivery commitment extension fees are received when a PFI requires an extension of the delivery commitment period beyond the original stated expiration. These fees compensate the FHLBank for lost interest as a result of late funding and represent the member purchasing a derivative from the FHLBank. Pair-off fees are received from the PFI when the amount funded is more than or less than a specific percentage range of the delivery commitment amount. These fees compensate the FHLBank for hedge costs associated with the under-delivery or over-delivery. To the extent that pair off fees relate to under-deliveries of loans, they are included in the mark-to-market of the related delivery commitment derivative. If they relate to over-deliveries, they represent purchase price adjustments to the related loans acquired and are recorded as a part of the carrying value of the loan. Allowance for Credit Losses: An allowance for credit losses is a valuation allowance separately established for each identified portfolio segment, if necessary, to provide for probable losses inherent in the FHLBank’s portfolios as of the Statement of Condition date. A mortgage loan is considered impaired when, based on current information and events, it is probable that the FHLBank will be unable to collect all amounts due according to the contractual terms of the mortgage loan agreement. To the extent necessary, an allowance for credit losses for off-balance sheet credit exposures is recorded as a liability. See Note 7 for details on each allowance methodology. Portfolio Segments: A portfolio segment is defined as the level at which an entity develops and documents a systematic methodology for determining its allowance for credit losses. The FHLBank has developed and documented a systematic methodology for determining an allowance for credit losses, where applicable, for: (1) credit products (advances, letters of credit and other extensions of credit to members); (2) government-guaranteed or -insured mortgage loans held for portfolio; (3) conventional mortgage loans held for portfolio; (4) the direct financing lease receivable; (5) term Federal funds sold; and (6) term securities purchased under agreements to resell. Classes of Financing Receivables: Classes of financing receivables generally are a disaggregation of a portfolio segment to the extent that it is needed to understand the exposure to credit risk arising from these financing receivables. The FHLBank has determined that no further disaggregation of portfolio segments identified previously is needed as the credit risk arising from these financing receivables is assessed and measured at the portfolio segment level. Non-accrual Loans: The FHLBank places a conventional mortgage loan on non-accrual status if it is determined that either: (1) the collection of interest or principal is doubtful; or (2) interest or principal is past due for 90 days or more, except when the loan is well-secured (e.g., through credit enhancements) and in the process of collection. The FHLBank does not place government-guaranteed or -insured mortgage loans on non-accrual status due to 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. For those mortgage loans placed on non-accrual status, accrued but uncollected interest is reversed against interest income. The FHLBank records cash payments received on non-accrual loans first as interest income and then as a reduction of principal as specified in the contractual agreement, unless the collection of the remaining principal amount due is considered doubtful. If the collection of the remaining principal amount due is considered doubtful then cash payments received would be applied first solely to principal until the remaining principal amount due is expected to be collected and then as a recovery of any charge-off, if applicable, followed by recording interest income. A loan on non-accrual status may be restored to accrual status when: (1) none of its contractual principal and interest is due and unpaid, and the FHLBank expects repayment of the remaining contractual principal and interest; or (2) it otherwise becomes well secured and in the process of collection. Troubled Debt Restructuring: The FHLBank considers a troubled debt restructuring 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. Loans that are discharged in Chapter 7 bankruptcy and have not been reaffirmed by the borrowers are also considered to be troubled debt restructurings, except in certain cases where supplemental mortgage insurance (SMI) policies are held or where all contractual amounts due are still expected to be collected as a result of certain credit enhancements or government guarantees. Collateral-dependent Loans: An impaired loan is considered collateral dependent if repayment is expected to be provided solely by sale of the underlying property; that is, there is no other available and reliable source of repayment. A loan that is considered collateral-dependent is measured for impairment based on the fair value of the underlying property less estimated selling costs, with any shortfall recognized as an allowance for loan loss or charged off. Interest income on impaired loans is recognized in the same manner as non-accrual loans. Charge-off Policy: A charge-off is recorded if it is estimated that the recorded investment in a loan will not be recovered. The FHLBank 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 notification of a claim against any of the credit enhancements. The FHLBank charges off the portion of outstanding conventional mortgage loan balances in excess of fair value of the underlying property, less estimated cost to sell, for loans that are 180 days or more delinquent and certain loans for which the borrower has filed for bankruptcy. Real Estate Owned: Real estate owned (REO) includes assets that have been received in satisfaction of debt through foreclosures. REO is initially recorded at fair value less estimated selling costs and is subsequently carried at the lower of that amount or current fair value less estimated selling costs. The FHLBank recognizes a charge-off to the allowance for credit losses if the fair value of the REO less estimated selling costs is less than the recorded investment in the loan at the date of transfer from loans to REO. Any subsequent gains, losses and carrying costs are included in other expense in the Statements of Income. REO is recorded in other assets on the Statements of Condition. |
Derivatives, Policy | Derivatives: All derivatives are recognized on the Statements of Condition at their fair values and are reported as either derivative assets or derivative liabilities, net of cash collateral, and accrued interest receivable from or pledged by clearing agents and/or counterparties. The fair values of derivatives are netted by clearing agent or counterparty when the netting requirements have been met. If these netted amounts are positive, they are classified as an asset and, if negative, they are classified as a liability. Cash flows associated with derivatives are reflected as cash flows from operating activities in the Statements of Cash Flows unless the derivative meets the criteria to be a financing derivative. The FHLBank utilizes two Derivative Clearing Organizations (Clearinghouses) for all cleared derivative transactions, LCH Ltd and CME Clearing. At both Clearinghouses, variation margin is characterized as daily settlement payments and initial margin is considered cash collateral. Derivative Designations: Each derivative is designated as one of the following: ▪ a qualifying fair value hedge of the change in fair value of: (1) a recognized asset or liability, or (2) an unrecognized firm commitment; or ▪ a non-qualifying hedge of an asset or liability (an economic hedge) for asset/liability management purposes. Accounting for Qualifying Hedges: If hedging relationships meet certain criteria, including, but not limited to, formal documentation of the hedging relationship and an expectation to be highly effective, they qualify for hedge accounting. Two approaches to hedge accounting include: ▪ Long haul hedge accounting - The application of long haul hedge accounting requires the FHLBank to 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 attributable to the hedged risk and whether those derivatives may be expected to remain highly effective in future periods; and ▪ Shortcut hedge accounting - Interest rate swap transactions that meet more stringent criteria qualify for the shortcut method of hedge accounting in which an assumption can be made that the change in fair value of a hedged item, due to changes in the benchmark rate, exactly offsets the change in fair value of the related derivative. Under the shortcut method, the entire change in fair value of the interest rate swap is considered to be highly effective at achieving offsetting changes in fair values of the hedged asset or liability. Derivatives are typically executed at the same time as the hedged item, and the FHLBank designates the hedged item in a qualifying hedge relationship at the trade date. In many hedging relationships, the FHLBank may designate the 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 FHLBank defines market settlement conventions for advances and consolidated obligation discount notes to be five business days or less and for consolidated obligation bonds to be thirty calendar days or less, using a next business day convention. The FHLBank then records the changes in fair value of the derivative and the hedged item beginning on the trade date. Beginning January 1, 2019, the FHLBank adopted new hedge accounting guidance, which, among other things, impacts the presentation of gains (losses) on derivatives and hedging activities for qualifying hedges. 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 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. Net gains (losses) on derivatives and hedging activities for qualifying hedges recorded in net interest income include unrealized and realized gains (losses), which include net interest settlements. Prior to January 1, 2019, fair value hedge ineffectiveness (which represented the amount by which the change in the fair value of the derivative differed from the change in the fair value of the hedged item) was recorded in non-interest income as net gains (losses) on derivatives and hedging activities. Accounting for Non-Qualifying Hedges: An economic hedge is defined as a derivative hedging underlying assets, liabilities or firm commitments that does not qualify for hedge accounting or where management did not elect hedge accounting treatment at inception but is an acceptable hedging strategy under the FHLBank’s RMP. These economic hedging strategies also comply with FHFA regulatory requirements prohibiting speculative derivative transactions. An economic hedge introduces the potential for earnings variability caused by changes in fair value on the derivatives that are recorded in the FHLBank’s income but not offset by corresponding changes in the fair value of the economically hedged assets, liabilities or firm commitments being recorded simultaneously in income. As a result, the FHLBank recognizes only the net interest and the change in fair value of these derivatives in other income (loss) as net gains (losses) on derivatives and hedging activities with no offsetting fair value adjustments for the assets, liabilities or firm commitments. Accrued Interest Receivables and Payables: The net settlements of interest receivables and payables on derivatives designated as fair value hedges are recognized as adjustments to the interest income or expense of the designated underlying investment securities, advances, consolidated obligations or other financial instruments, thereby affecting the reported amount of net interest income on the Statements of Income. The net settlements of interest receivables and payables on economic hedges are recognized in other income (loss) as net gains (losses) on derivatives and hedging activities. Discontinuance of Hedge Accounting: The FHLBank discontinues hedge accounting prospectively when: (1) it determines that the derivative is no longer effective in offsetting changes in the fair value of a hedged item attributable to the hedged risk (including hedged items such as firm commitments); (2) the derivative and/or the hedged item expires or is sold, terminated or exercised; (3) a hedged firm commitment no longer meets the definition of a firm commitment; or (4) management determines that designating the derivative as a hedging instrument is no longer appropriate. When hedge accounting is discontinued because the FHLBank determines that the derivative no longer qualifies as an effective fair value hedge of an existing hedged item, the FHLBank continues to carry the derivative on its Statements of Condition at fair value, ceases to adjust the hedged asset or liability for changes in fair value, and begins amortizing the cumulative basis adjustment on the hedged item into earnings over the remaining life of the hedged item using the level-yield method. When hedge accounting is discontinued and the derivative remains outstanding, the FHLBank carries the derivative at fair value on its Statements of Condition, recognizing changes in the fair value of the derivative in other income (loss) as net gains (losses) on derivatives and hedging activities. When hedge accounting is discontinued because the hedged item no longer meets the definition of a firm commitment, the FHLBank continues to carry the derivative on its Statements of Condition at fair value, removing any asset or liability that was recorded to recognize the firm commitment and recording it as a gain or loss in current period earnings. Embedded Derivatives: The FHLBank may issue debt, make advances, or purchase financial instruments in which a derivative instrument is embedded. Upon execution of these transactions, the FHLBank assesses whether the economic characteristics of the embedded derivative are clearly and closely related to the economic characteristics of the remaining component of the advance, debt 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. When the FHLBank determines that: (1) the embedded derivative has economic characteristics that are not clearly and closely related to the economic characteristics of the host contract; and (2) 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 a stand-alone derivative instrument pursuant to an economic hedge. However, if the entire contract (the host contract and the embedded derivative) is to be measured at fair value, with changes in fair value reported in current period earnings (such as an investment security classified as trading), or if the FHLBank cannot reliably identify and measure the embedded derivative for purposes of separating that derivative from its host contract, the entire contract is carried on the Statements of Condition at fair value and no portion of the contract is designated as a hedging instrument. |
Property, Plant and Equipment, Policy | Premises, Software and Equipment: Premises, software, and equipment are included in other assets on the Statements of Condition. The FHLBank records premises, software, and equipment at cost less accumulated depreciation and amortization. Depreciation is computed on the straight-line method over the estimated useful lives of the assets ranging from 3 to 40 years . Leasehold improvements are amortized on the straight-line basis over the shorter of the estimated useful life of the improvement or the remaining term of the lease. Improvements and major renewals are capitalized, and ordinary maintenance and repairs are expensed as incurred. The cost of purchased software and certain costs incurred in developing computer software for internal use are capitalized and amortized over future periods. Gains and losses on disposals are included in other income (loss) on the Statements of Income. |
Internal Use Software, Policy | The cost of purchased software and certain costs incurred in developing computer software for internal use are capitalized and amortized over future periods. |
Debt, Policy | Consolidated Obligations: Consolidated obligations are recorded at amortized cost, which represents the funded amount, adjusted for premiums, discounts, concessions, and fair value hedging adjustments. Discounts and Premiums: Consolidated obligation discounts are accreted and premiums are amortized to interest expense using the level-yield method over the contractual maturities of the corresponding debt. Concessions: Amounts paid to dealers in connection with sales of consolidated obligations are deferred and amortized using the level-yield method over the contractual terms of the consolidated obligations. Concession amounts are prorated to the FHLBank by the Office of Finance based on the percentage of each consolidated obligation issued by the Office of Finance on behalf of the FHLBank. The FHLBank records concessions paid on consolidated obligations as a direct deduction from their carrying amounts, consistent with the presentation of discounts on consolidated obligations. The amortization of those concessions is included in consolidated obligation interest expense. |
Shares Subject to Mandatory Redemption, Changes in Redemption Value, Policy | Mandatorily Redeemable Capital Stock: The FHLBank reclassifies all stock subject to redemption from capital to liability once a member submits a written redemption request, gives notice of intent to withdraw from membership, or attains non-member status by merger or acquisition, charter termination or involuntary termination from membership, since the member shares will then meet the definition of a mandatorily redeemable financial instrument. There is no distinction as to treatment for reclassification from capital to liability between in-district redemption requests and those redemption requests triggered by out-of-district acquisitions. The FHLBank does not take into consideration its members’ right to cancel a redemption request in determining when shares of capital stock should be classified as a liability because the cancellation would be subject to a substantial cancellation fee. Member and non-member shares of capital stock meeting the definition of mandatorily redeemable capital stock are reclassified to a liability at fair value, which has been determined to be par value plus any estimated accrued but unpaid dividends. The FHLBank’s dividends are declared and paid at each quarter-end; therefore, the fair value reclassified equals par value. Dividends declared on a member's shares of capital stock for the time after classification as a liability are accrued at the expected dividend rate and reflected as interest expense in the Statements of Income. The repurchase of these mandatorily redeemable financial instruments by the FHLBank are reflected as financing cash outflows in the Statements of Cash Flows once settled. If a member submits a written request to cancel a previously submitted written redemption request, the capital stock covered by the written cancellation request is reclassified from a liability to capital at fair value. After the reclassification, dividends on the capital stock are no longer classified as interest expense. |
New Accounting Pronouncements, Policy | Facilitation of the Effects of Reference Rate Reform on Financial Reporting . In March 2020, the Financial Accounting Standards Board (FASB) issued temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying GAAP to transactions affected by reference rate reform if certain criteria are met. The transactions primarily include: (1) contract modifications; (2) hedging relationships; and (3) sale or transfer of debt securities classified as held-to-maturity. This guidance is effective immediately for the FHLBank, and the amendments may be applied prospectively through December 31, 2022. The FHLBank is in the process of evaluating the guidance, and its effect on the FHLBank's financial condition, results of operations and cash flows has not yet been determined. Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes (Accounting Standards Update (ASU) 2018-16) . In October 2018, the FASB issued an amendment that permits use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815 in addition to the U.S. Treasury rate, the LIBOR swap rate, the OIS rate based on the Fed Funds Effective Rate, and the Securities Industry and Financial Markets Association Municipal Swap Rate. The amendments apply to all entities that elect to apply hedge accounting of the benchmark interest rate. The amendments were adopted on a prospective basis for qualifying new or redesignated hedging relationships entered into on or after the date of adoption. The amendment was effective concurrently with ASU 2017-12 (see below) beginning January 1, 2019. The adoption of this guidance did not materially impact the FHLBank's application of hedge accounting or utilization of hedging strategies. Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (ASU 2018-15). In August 2018, the FASB issued an amendment to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Accordingly, the amendments in this ASU require an entity in a hosting arrangement that is a service contract to follow existing guidance relating to internal-use software to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. Costs to develop or obtain internal-use software that cannot be capitalized also cannot be capitalized for a hosting arrangement that is a service contract. Therefore, an entity in a hosting arrangement that is a service contract determines to which project stage (that is, preliminary project stage, application development stage, or post-implementation stage) an implementation activity relates. Costs for implementation activities in the application development stage are capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post-implementation stages are expensed as the activities are performed. The amendments in this ASU also require the entity to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. The amendments in this ASU were effective January 1, 2020 for the FHLBank. The adoption of this guidance did not materially impact on the FHLBank's financial condition, results of operations or cash flows. Changes to the Disclosure Requirements for Defined Benefit Plans (ASU 2018-14). In August 2018, the FASB issued an amendment modifying the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans to improve disclosure effectiveness. The amendments in the ASU remove disclosures that are no longer considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. The amendments in this ASU are effective for annual periods ending after December 15, 2020, which is the year ending December 31, 2020 for the FHLBank, and will be applied retrospectively for all comparative periods presented. Early adoption is permitted. The FHLBank does not plan on early adoption. The adoption of this guidance will not have a material impact on the disclosures related to defined benefit plans and will not impact the FHLBank’s financial condition, results of operations or cash flows. Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13). In August 2018, the FASB issued an amendment that modifies the disclosure requirements for fair value measurements. This ASU removes the requirement to disclose: (1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; (2) the policy for timing of transfers between levels; and (3) the valuation processes for Level 3 fair value measurements. The ASU requires disclosure of changes in unrealized gains and losses for the period included in OCI for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments in this ASU were effective January 1, 2020 for the FHLBank. The adoption of this guidance will not have a material impact on the disclosures related to fair value measurements and did not impact the FHLBank’s financial condition, results of operations or cash flows. Targeted Improvements to Accounting for Hedging Activities, as amended (ASU 2017-12) . In August 2017, the FASB issued an amendment to simplify the application of hedge accounting guidance in current GAAP and to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. This guidance requires that, for fair value hedges, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness be presented in the same income statement line that is used to present the earnings effect of the hedged item. In addition, the amendments include certain targeted improvements to the assessment of hedge effectiveness and permit, among other things, the following: • Measurement of the change in fair value of the hedged item on the basis of the benchmark rate component of the contractual coupon cash flows determined at hedge inception; • Measurement of the hedged item in a partial-term fair value hedge of interest rate risk by assuming the hedged item has a term that reflects only the designated cash flows being hedged; • Consideration only of how changes in the benchmark interest rate affect a decision to settle a prepayable instrument before its scheduled maturity in calculating the change in the fair value of the hedged item attributable to interest rate risk; • For a cash flow hedge of interest rate risk of a variable rate financial instrument, an entity can designate the variability in cash flows attributable to the contractually specified interest rate as the hedged risk; and • If an entity that applies the shortcut method determines that use of that method was not or is no longer appropriate, the entity may apply a long-haul method for assessing hedge effectiveness as long as the hedge is highly effective and the entity documents at inception, or at the adoption date for existing shortcut hedging relationships, which long-haul methodology it will use. The amendment became effective January 1, 2019 for the FHLBank. The guidance did not impact the FHLBank's application of hedge accounting for existing hedge strategies. For all short-cut hedge accounting trades, the FHLBank updated existing documentation to designate a long-haul method to be utilized in the event a hedge ceases to qualify for the short-cut method. The guidance also provided opportunities to enhance risk management through new hedge strategies, including partial term hedges. The adoption of this guidance did not have a material impact on the FHLBank's financial condition, results of operations or cash flows beyond a prospective change in income statement presentation for fair value hedge relationships and new required disclosures. Premium Amortization on Purchased Callable Debt Securities (ASU 2017-08). In March 2017, the FASB issued an amendment to shorten the amortization period of any premium on callable debt securities to the first call date instead of over the contractual life of the instrument. The amendment does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The guidance is intended to reduce diversity in practice in the amortization of premiums and the consideration of how the potential of a security being called is factored into current impairment assessments. The amendment also intends to more closely align the amortization of premiums and discounts to the expectations incorporated into the market pricing of the instrument. The amendment became effective January 1, 2019 for the FHLBank. The adoption of this guidance did not have an impact on the FHLBank's financial condition, results of operations or cash flows. Measurement of Credit Losses on Financial Instruments, as amended (ASU 2016-13). In June 2016, the FASB issued amended guidance for the accounting of credit losses on financial instruments. The amendments require entities to measure expected credit losses based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. Additionally, under the new guidance, a financial asset, or a group of financial assets, measured at amortized cost basis is required to be presented at the net amount expected to be collected. The guidance also requires: • The statement of income to reflect the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period; • The entities to determine the allowance for credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination that are measured at amortized cost basis in a similar manner to other financial assets measured at amortized cost basis. The initial allowance for credit losses is required to be added to the purchase price; • Credit losses relating to available-for-sale debt securities to be recorded through an allowance for credit losses. The amendments limit the allowance for credit losses to the amount by which fair value is below amortized cost; and • Public entities to further disaggregate the current disclosure of credit quality indicators in relation to the amortized cost of financing receivables by the year of origination (i.e., vintage). The guidance became effective for the FHLBank on January 1, 2020 and was applied using a modified-retrospective approach, through a cumulative-effect adjustment to retained earnings. Adoption of this guidance did not have a material impact on the FHLBank’s financial condition, results of operations, or cash flows. Leases (ASU 2016-02). In February 2016, FASB issued amendments to lease accounting guidance. Under the new guidance, lessees are required to recognize a lease liability and a right-of-use asset for all leases in the statement of financial condition, which effectively removes a source of off-balance sheet financing for operating leases. A distinction remains between finance leases and operating leases, but the assets and liabilities arising from operating leases are now also required to be recognized in the statement of financial condition. Lessor accounting is largely unchanged. The amendments became effective January 1, 2019 for the FHLBank. The adoption of this guidance did not have a material impact on the FHLBank's financial condition, results of operations or cash flows. |
Finance, Loan and Lease Receivables, Held-for-investment, Allowance and Nonperforming Loans, Policy [Policy Text Block] | The FHLBank has established an allowance methodology for each of its portfolio segments: credit products (advances, letters of credit and other extensions of credit to borrowers); government mortgage loans held for portfolio; conventional mortgage loans held for portfolio; the direct financing lease receivable; term Federal funds sold; and term securities purchased under agreements to resell. Based on management's analyses of each portfolio segment, the FHLBank has only established an allowance for credit losses on its conventional mortgage loans held for portfolio. |
Finance, Loan and Lease Receivables, Held-for-investment, Allowance and Nonperforming Loans, Nonperforming Loans Policy [Policy Text Block] | Government Mortgage Loans Held for Portfolio: The FHLBank invests in government-guaranteed or -insured (by the Federal Housing Administration, the Department of Veterans Affairs, the Rural Housing Service of the Department of Agriculture and/or the Department of Housing and Urban Development) fixed rate mortgage loans secured by one-to-four family residential properties. The servicer provides and maintains insurance or a guarantee from the applicable government agency. The servicer is responsible for compliance with all government agency requirements and for obtaining the benefit of the applicable insurance or guarantee with respect to defaulted government mortgage loans. Any losses on these loans that are not recovered from the issuer or guarantor are absorbed by the servicers. Therefore, the FHLBank only has credit risk for these loans if the servicer fails to pay for losses not covered by the insurance or guarantee so the FHLBank has not established an allowance for credit losses on government mortgage loans. Conventional Mortgage Loans Held for Portfolio : The allowance for conventional loans is determined by a formula analysis based upon loss factors predominantly calculated using a historical analysis of loan performance. Delinquent loan migration analysis is performed to determine default probability rates, and historical loss analysis is performed to determine loss severity rates, both of which are then utilized as loss factors within the formula analysis. These analyses include consideration of various data observations, such as past performance, current performance, loan portfolio characteristics, collateral-related characteristics, industry data, and prevailing economic conditions. The allowance for conventional mortgage loan losses may consist of losses from: (1) individually evaluated mortgage loans, including collateral-dependent loans; (2) collectively evaluated homogeneous pools of residential mortgage loans; and/or (3) estimated additional credit losses in the portfolio. The formula analysis is consistently applied, but loss factors may be adjusted in response to changing conditions, as a result of management’s assessment of the adequacy of the allowance to absorb losses inherent in the portfolio. Collectively Evaluated Mortgage Loans: The credit risk analysis of conventional loans evaluated collectively for impairment considers loan pool specific attribute data, including historical delinquency migration, applies estimated loss severities, and incorporates the associated credit enhancements in order to determine the FHLBank’s best estimate of probable incurred losses. Migration analysis is a methodology for determining, through the FHLBank’s experience over a historical period, the rate of default on pools of similar loans. The FHLBank applies migration analysis to loans based on the following categories: (1) loans in foreclosure; (2) nonaccrual loans; (3) delinquent loans; and (4) all other remaining loans. The FHLBank then estimates how many loans in these categories may migrate to a realized loss position and applies a loss severity factor to estimate losses incurred as of the Statement of Condition date. Individually Evaluated Mortgage Loans: Certain conventional mortgage loans, primarily impaired mortgage loans that are considered collateral-dependent, may be specifically identified for purposes of calculating the allowance for credit losses. A mortgage loan is considered collateral-dependent if repayment is expected to be provided by the sale of the underlying property, that is, if it is considered likely that the borrower will default. The estimated credit losses on impaired collateral-dependent loans may be separately determined because sufficient information exists to make a reasonable estimate of the inherent loss for these loans on an individual loan basis. The FHLBank estimates the fair value of this collateral by applying an appropriate loss severity rate or using third party estimates or property valuation models. The incurred loss of an individually evaluated mortgage loan is equal to the difference between the carrying value of the loan and the estimated fair value of the collateral, less estimated selling costs, and may include expected proceeds from PMI and other applicable credit enhancements. |
Derivatives, Methods of Accounting, Hedging Derivatives Policy | Application of Derivatives: At the inception of every hedge transaction, the FHLBank documents all hedging relationships between derivatives designated as hedging instruments and the hedged items, its risk management objectives and strategies for undertaking various hedge transactions, and its method of assessing effectiveness. This process includes linking all derivatives that are designated as fair value hedges to assets and/or liabilities on the Statements of Condition or firm commitments. |
Pension and Other Postretirement Plans, Policy [Policy Text Block] | Qualified Defined Benefit Multiemployer Plan: The FHLBank participates in the Pentegra Defined Benefit Plan for Financial Institutions (Pentegra Defined Benefit Plan), a tax-qualified defined benefit pension plan. The Pentegra Defined Benefit 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 Defined Benefit Plan. Under the Pentegra Defined Benefit 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. In September 2019, the FHLBank's board of directors elected to freeze the Pentegra Defined Benefit Plan on December 31, 2019, thereby discontinuing the future accrual of new benefits. Prior to the plan freeze, employees of the FHLBank who began employment prior to January 1, 2009 were eligible to participate. The Pentegra Defined Benefit Plan operates on a fiscal year from July 1 through June 30 and files one Form 5500 on behalf of all employers who participate in the plan. The Employer Identification Number is 135645888 and the three-digit plan number is 333 . There are no collective bargaining agreements in place at the FHLBank. The Pentegra Defined Benefit 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 Defined Benefit 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 Defined Benefit Plan is for the year ended June 30, 2018 . For the Pentegra Defined Benefit Plan years ended June 30, 2018 and 2017 , the FHLBank’s contributions did not represent more than five percent of the total contributions to the Pentegra Defined Benefit Plan. |
Fair Value Transfer, Policy | The FHLBank 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. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investment Holdings [Line Items] | |
Trading Securities by Major Security Type | Trading securities by major security type as of December 31, 2019 and 2018 are summarized in Table 4.1 (in thousands): Table 4.1 Fair Value 12/31/2019 12/31/2018 Non-mortgage-backed securities: U.S. Treasury obligations $ 1,530,518 $ 252,377 GSE obligations 416,025 1,000,495 Non-mortgage-backed securities 1,946,543 1,252,872 Mortgage-backed securities: U.S. obligation MBS — 467 GSE MBS 866,019 897,774 Mortgage-backed securities 866,019 898,241 TOTAL $ 2,812,562 $ 2,151,113 |
Net Gains (Losses) on Trading Securities | Net gains (losses) on trading securities during the years ended December 31, 2019, 2018, and 2017 are shown in Table 4.2 (in thousands): Table 4.2 2019 2018 2017 Net gains (losses) on trading securities held as of December 31, 2019 $ 69,865 $ (19,186 ) $ 10,657 Net gains (losses) on trading securities sold or matured prior to December 31, 2019 396 (2,724 ) (3,743 ) NET GAINS (LOSSES) ON TRADING SECURITIES $ 70,261 $ (21,910 ) $ 6,914 |
Available-for-sale Securities [Member] | |
Investment Holdings [Line Items] | |
Available-for-sale Securities by Major Security Type | Available-for-sale securities by major security type as of December 31, 2019 are summarized in Table 4.3 (in thousands): Table 4.3 12/31/2019 Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Non-mortgage-backed securities: U.S. Treasury obligations $ 4,258,608 $ 3,580 $ (397 ) $ 4,261,791 Non-mortgage-backed securities 4,258,608 3,580 (397 ) 4,261,791 Mortgage-backed securities: GSE MBS 2,897,104 28,353 (4,748 ) 2,920,709 Mortgage-backed securities 2,897,104 28,353 (4,748 ) 2,920,709 TOTAL $ 7,155,712 $ 31,933 $ (5,145 ) $ 7,182,500 Available-for-sale securities by major security type as of December 31, 2018 are summarized in Table 4.4 (in thousands): Table 4.4 12/31/2018 Amortized Gross Gross Fair Value Mortgage-backed securities: GSE MBS $ 1,706,572 $ 25,815 $ (6,747 ) $ 1,725,640 TOTAL $ 1,706,572 $ 25,815 $ (6,747 ) $ 1,725,640 |
Available-for-sale securities with unrealized losses, fair value | Table 4.5 summarizes the available-for-sale securities with unrealized losses as of December 31, 2019 (in thousands). The unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position. Table 4.5 12/31/2019 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Non-mortgage-backed securities: U.S. Treasury obligations $ 1,579,004 $ (397 ) $ — $ — $ 1,579,004 $ (397 ) Non-mortgage-backed securities 1,579,004 (397 ) — — 1,579,004 (397 ) Mortgage-backed securities: GSE MBS 787,809 (932 ) 301,161 (3,816 ) 1,088,970 (4,748 ) Mortgage-backed securities 787,809 (932 ) 301,161 (3,816 ) 1,088,970 (4,748 ) TOTAL TEMPORARILY IMPAIRED SECURITIES $ 2,366,813 $ (1,329 ) $ 301,161 $ (3,816 ) $ 2,667,974 $ (5,145 ) Table 4.6 summarizes the available-for-sale securities with unrealized losses as of December 31, 2018 (in thousands). The unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position. Table 4.6 12/31/2018 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities: GSE MBS $ 570,042 $ (6,747 ) $ — $ — $ 570,042 $ (6,747 ) TOTAL TEMPORARILY IMPAIRED SECURITIES $ 570,042 $ (6,747 ) $ — $ — $ 570,042 $ (6,747 ) |
Securities Classified By Contractual Maturity | The amortized cost and fair values of available-for-sale securities by contractual maturity as of December 31, 2019 and 2018 are shown in Table 4.7 (in thousands). Expected maturities of MBS will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees. Table 4.7 12/31/2019 12/31/2018 Amortized Cost Fair Value Amortized Cost Fair Value Non-mortgage-backed securities: Due in one year or less $ 754,003 $ 753,891 $ — $ — Due after one year through five years 3,504,605 3,507,900 — — Due after five years through ten years — — — — Due after ten years — — — — Non-mortgage-backed securities 4,258,608 4,261,791 — — Mortgage-backed securities 2,897,104 2,920,709 1,706,572 1,725,640 TOTAL $ 7,155,712 $ 7,182,500 $ 1,706,572 $ 1,725,640 |
Held-to-maturity Securities [Member] | |
Investment Holdings [Line Items] | |
Securities Classified By Contractual Maturity | The amortized cost, carrying value and fair values of held-to-maturity securities by contractual maturity as of December 31, 2019 and 2018 are shown in Table 4.12 (in thousands). Expected maturities of certain securities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees. Table 4.12 12/31/2019 12/31/2018 Amortized Cost Carrying Value Fair Value Amortized Cost Carrying Value Fair Value Non-mortgage-backed securities: Due in one year or less $ — $ — $ — $ — $ — $ — Due after one year through five years — — — — — — Due after five years through ten years — — — — — — Due after ten years 82,805 82,805 80,854 86,430 86,430 82,951 Non-mortgage-backed securities 82,805 82,805 80,854 86,430 86,430 82,951 Mortgage-backed securities 3,487,153 3,487,153 3,476,084 4,370,443 4,370,443 4,364,127 TOTAL $ 3,569,958 $ 3,569,958 $ 3,556,938 $ 4,456,873 $ 4,456,873 $ 4,447,078 |
Held-To-Maturity Securities by Major Security Type | Held-to-maturity securities by major security type as of December 31, 2019 are summarized in Table 4.8 (in thousands): Table 4.8 12/31/2019 Amortized Cost Carrying Value Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Non-mortgage-backed securities: State or local housing agency obligations $ 82,805 $ 82,805 $ 5 $ (1,956 ) $ 80,854 Non-mortgage-backed securities 82,805 82,805 5 (1,956 ) 80,854 Mortgage-backed securities: U.S. obligation MBS 93,375 93,375 — (496 ) 92,879 GSE MBS 3,393,778 3,393,778 6,558 (17,131 ) 3,383,205 Mortgage-backed securities 3,487,153 3,487,153 6,558 (17,627 ) 3,476,084 TOTAL $ 3,569,958 $ 3,569,958 $ 6,563 $ (19,583 ) $ 3,556,938 Held-to-maturity securities by major security type as of December 31, 2018 are summarized in Table 4.9 (in thousands): Table 4.9 12/31/2018 Amortized Cost Carrying Value Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Non-mortgage-backed securities: State or local housing agency obligations $ 86,430 $ 86,430 $ 1 $ (3,480 ) $ 82,951 Non-mortgage-backed securities 86,430 86,430 1 (3,480 ) 82,951 Mortgage-backed securities: U.S. obligation MBS 109,866 109,866 125 (99 ) 109,892 GSE MBS 4,260,577 4,260,577 12,164 (18,506 ) 4,254,235 Mortgage-backed securities 4,370,443 4,370,443 12,289 (18,605 ) 4,364,127 TOTAL $ 4,456,873 $ 4,456,873 $ 12,290 $ (22,085 ) $ 4,447,078 |
Securities in A Continuous Unrealized Loss Position | Table 4.10 summarizes the held-to-maturity securities with unrealized losses as of December 31, 2019 (in thousands). The unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position. Table 4.10 12/31/2019 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Non-mortgage-backed securities: State or local housing agency obligations $ — $ — $ 28,044 $ (1,956 ) $ 28,044 $ (1,956 ) Non-mortgage-backed securities — — 28,044 (1,956 ) 28,044 (1,956 ) Mortgage-backed securities: U.S. obligation MBS 68,433 (293 ) 24,446 (203 ) 92,879 (496 ) GSE MBS 383,910 (1,457 ) 2,422,598 (15,674 ) 2,806,508 (17,131 ) Mortgage-backed securities 452,343 (1,750 ) 2,447,044 (15,877 ) 2,899,387 (17,627 ) TOTAL TEMPORARILY IMPAIRED SECURITIES $ 452,343 $ (1,750 ) $ 2,475,088 $ (17,833 ) $ 2,927,431 $ (19,583 ) Table 4.11 summarizes the held-to-maturity securities with unrealized losses as of December 31, 2018 (in thousands). The unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position. Table 4.11 12/31/2018 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Non-mortgage-backed securities: State or local housing agency obligations $ — $ — $ 26,520 $ (3,480 ) $ 26,520 $ (3,480 ) Non-mortgage-backed securities — — 26,520 (3,480 ) 26,520 (3,480 ) Mortgage-backed securities: U.S. obligation MBS — — 30,702 (99 ) 30,702 (99 ) GSE MBS 1,655,048 (4,769 ) 1,567,728 (13,737 ) 3,222,776 (18,506 ) Mortgage-backed securities 1,655,048 (4,769 ) 1,598,430 (13,836 ) 3,253,478 (18,605 ) TOTAL TEMPORARILY IMPAIRED SECURITIES $ 1,655,048 $ (4,769 ) $ 1,624,950 $ (17,316 ) $ 3,279,998 $ (22,085 ) |
Proceeds from sale and Gains and Losses on HTM Securities | Table 4.13 presents details of the sales (in thousands). No held-to-maturity securities were sold during the year ended December 31, 2017. Table 4.13 2019 2018 Proceeds from sale of held-to-maturity securities $ 9,442 $ 87,827 Carrying value of held-to-maturity securities sold (9,488 ) (86,236 ) NET REALIZED GAINS (LOSSES) $ (46 ) $ 1,591 |
Advances (Tables)
Advances (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Advances [Abstract] | |
Advances Table | Table 5.1 presents advances summarized by redemption term as of December 31, 2019 and 2018 (dollar amounts in thousands): Table 5.1 12/31/2019 12/31/2018 Redemption Term Amount Weighted Average Interest Rate Amount Weighted Average Interest Rate Due in one year or less $ 13,188,118 1.88 % $ 14,844,804 2.60 % Due after one year through two years 10,448,433 1.96 1,482,844 2.40 Due after two years through three years 1,254,153 2.27 1,442,333 2.53 Due after three years through four years 1,067,662 2.42 7,496,058 2.66 Due after four years through five years 1,208,854 2.22 816,702 2.68 Thereafter 3,004,835 2.25 2,695,008 2.58 Total par value 30,172,055 1.99 % 28,777,749 2.60 % Discounts (1,807 ) (3,413 ) Hedging adjustments 71,067 (44,223 ) TOTAL $ 30,241,315 $ 28,730,113 Table 5.2 presents advances summarized by redemption term or next call date (for callable advances) and by redemption term or next conversion date (for convertible advances) as of December 31, 2019 and 2018 (in thousands): Table 5.2 Redemption Term or Next Call Date Redemption Term or Next Conversion Date Redemption Term 12/31/2019 12/31/2018 12/31/2019 12/31/2018 Due in one year or less $ 24,271,238 $ 23,343,939 $ 14,053,068 $ 15,133,204 Due after one year through two years 1,133,077 1,271,660 10,637,833 1,683,644 Due after two years through three years 728,429 1,021,189 1,524,153 1,629,233 Due after three years through four years 764,990 555,901 1,215,412 7,752,058 Due after four years through five years 686,594 598,282 1,304,254 954,452 Thereafter 2,587,727 1,986,778 1,437,335 1,625,158 TOTAL PAR VALUE $ 30,172,055 $ 28,777,749 $ 30,172,055 $ 28,777,749 Interest Rate Payment Terms : Table 5.3 details additional interest rate payment terms for advances as of December 31, 2019 and 2018 (in thousands): Table 5.3 Redemption Term 12/31/2019 12/31/2018 Fixed rate: Due in one year or less $ 2,691,528 $ 1,635,464 Due after one year 5,912,124 5,455,193 Total fixed rate 8,603,652 7,090,657 Variable rate: Due in one year or less 10,496,590 13,209,340 Due after one year 11,071,813 8,477,752 Total variable rate 21,568,403 21,687,092 TOTAL PAR VALUE $ 30,172,055 $ 28,777,749 |
Mortgage Loans (Tables)
Mortgage Loans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Mortgage Loans Held For Portfolio | Table 6.1 presents information as of December 31, 2019 and 2018 on mortgage loans held for portfolio (in thousands): Table 6.1 12/31/2019 12/31/2018 Real estate: Fixed rate, medium-term 1 , single-family mortgages $ 1,347,385 $ 1,179,087 Fixed rate, long-term, single-family mortgages 9,128,268 7,111,856 Total unpaid principal balance 10,475,653 8,290,943 Premiums 155,793 120,548 Discounts (2,503 ) (2,936 ) Deferred loan costs, net 184 223 Other deferred fees (38 ) (50 ) Hedging adjustments 4,905 2,546 Total before Allowance for Credit Losses on Mortgage Loans 10,633,994 8,411,274 Allowance for Credit Losses on Mortgage Loans (985 ) (812 ) MORTGAGE LOANS HELD FOR PORTFOLIO, NET $ 10,633,009 $ 8,410,462 1 Medium-term defined as a term of 15 years or less at origination. Table 6.2 presents information as of December 31, 2019 and 2018 on the outstanding UPB of mortgage loans held for portfolio (in thousands): Table 6.2 12/31/2019 12/31/2018 Conventional loans $ 9,849,542 $ 7,619,498 Government-guaranteed or -insured loans 626,111 671,445 TOTAL UNPAID PRINCIPAL BALANCE $ 10,475,653 $ 8,290,943 |
Allowance For Credit Losses (Ta
Allowance For Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Net Credit Enhancement Fees Paid To Participating Members | Table 7.1 presents net CE fees paid to PFIs for the years ended December 31, 2019, 2018, and 2017 (in thousands): Table 7.1 2019 2018 2017 CE fees paid to PFIs 1 $ 7,019 $ 6,196 $ 5,767 Performance-based CE fees recovered from PFIs (125 ) (107 ) (103 ) NET CE FEES PAID $ 6,894 $ 6,089 $ 5,664 1 CE fees paid to PFIs excludes the amortization of CE fees paid up front, which is included with premium amortization as a reduction to mortgage interest income. |
Rollforward of Allowance for Credit Losses on Mortgage Loans | Table 7.2 presents a roll-forward of the allowance for credit losses for the years ended December 31, 2019, 2018, and 2017 (in thousands): Table 7.2 Conventional Loans 2019 2018 2017 Balance, beginning of the period $ 812 $ 1,208 $ 1,674 Net (charge-offs) recoveries (214 ) (423 ) (280 ) Provision (reversal) for credit losses 387 27 (186 ) Balance, end of the period $ 985 $ 812 $ 1,208 Table 7.3 presents the allowance for credit losses and the recorded investment as well as the method used to evaluate impairment relating to all portfolio segments regardless of whether or not an estimated credit loss has been recorded as of December 31, 2019 (in thousands). The recorded investment in a financing receivable is the UPB, adjusted for accrued interest, net deferred loan fees or costs, unamortized premiums or discounts, fair value hedging adjustments and direct write-downs. The recorded investment is not net of any valuation allowance. Table 7.3 12/31/2019 Conventional Loans Government Loans Credit Products 1 Direct Financing Lease Receivable Total Allowance for credit losses: Individually evaluated for impairment $ — $ — $ — $ — $ — Collectively evaluated for impairment 985 — — — 985 TOTAL ALLOWANCE FOR CREDIT LOSSES $ 985 $ — $ — $ — $ 985 Recorded investment: Individually evaluated for impairment $ 12,068 $ — $ 30,286,952 $ 8,829 $ 30,307,849 Collectively evaluated for impairment 10,036,462 637,821 — — 10,674,283 TOTAL RECORDED INVESTMENT $ 10,048,530 $ 637,821 $ 30,286,952 $ 8,829 $ 40,982,132 1 The recorded investment for credit products includes only advances. The recorded investment for all other credit products is insignificant. Table 7.4 presents the allowance for credit losses and the recorded investment as well as the method used to evaluate impairment relating to all portfolio segments regardless of whether or not an estimated credit loss has been recorded as of December 31, 2018 (in thousands): Table 7.4 12/31/2018 Conventional Government Credit 1 Direct Total Allowance for credit losses: Individually evaluated for impairment $ 50 $ — $ — $ — $ 50 Collectively evaluated for impairment 762 — — — 762 TOTAL ALLOWANCE FOR CREDIT LOSSES $ 812 $ — $ — $ — $ 812 Recorded investment: Individually evaluated for impairment $ 8,679 $ — $ 28,777,274 $ 11,966 $ 28,797,919 Collectively evaluated for impairment 7,760,900 683,856 — — 8,444,756 TOTAL RECORDED INVESTMENT $ 7,769,579 $ 683,856 $ 28,777,274 $ 11,966 $ 37,242,675 1 The recorded investment for credit products includes only advances. The recorded investment for all other credit products is insignificant. |
Recorded Investment in Delinquent Mortgage Loans | Table 7.5 presents the payment status based on recorded investment as well as other delinquency statistics for all of the FHLBank’s portfolio segments as of December 31, 2019 (dollar amounts in thousands): Table 7.5 12/31/2019 Conventional Loans Government Loans Credit Products 1 Direct Financing Lease Receivable Total Recorded investment: Past due 30-59 days delinquent $ 59,226 $ 15,515 $ — $ — $ 74,741 Past due 60-89 days delinquent 7,561 6,128 — — 13,689 Past due 90 days or more delinquent 11,813 8,778 — — 20,591 Total past due 78,600 30,421 — — 109,021 Total current loans 9,969,930 607,400 30,286,952 8,829 40,873,111 Total recorded investment $ 10,048,530 $ 637,821 $ 30,286,952 $ 8,829 $ 40,982,132 Other delinquency statistics: In process of foreclosure, included above 2 $ 3,352 $ 2,730 $ — $ — $ 6,082 Serious delinquency rate 3 0.1 % 1.4 % — % — % 0.1 % Past due 90 days or more and still accruing interest $ — $ 8,778 $ — $ — $ 8,778 Loans on non-accrual status 4 $ 14,923 $ — $ — $ — $ 14,923 1 The recorded investment for credit products includes only advances. The recorded investment for all other credit products is insignificant. 2 Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans dependent on their delinquency status. 3 Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total recorded investment for the portfolio class. 4 Loans on non-accrual status include $1,219,000 of troubled debt restructurings. Troubled debt restructurings are restructurings in which the FHLBank, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. Table 7.6 presents the payment status based on recorded investment as well as other delinquency statistics for all of the FHLBank’s portfolio segments as of December 31, 2018 (dollar amounts in thousands): Table 7.6 12/31/2018 Conventional Loans Government Loans Credit Products 1 Direct Financing Lease Receivable Total Recorded investment: Past due 30-59 days delinquent $ 34,020 $ 14,790 $ — $ — $ 48,810 Past due 60-89 days delinquent 6,750 6,114 — — 12,864 Past due 90 days or more delinquent 8,169 7,898 — — 16,067 Total past due 48,939 28,802 — — 77,741 Total current loans 7,720,640 655,054 28,777,274 11,966 37,164,934 Total recorded investment $ 7,769,579 $ 683,856 $ 28,777,274 $ 11,966 $ 37,242,675 Other delinquency statistics: In process of foreclosure, included above 2 $ 2,922 $ 2,398 $ — $ — $ 5,320 Serious delinquency rate 3 0.1 % 1.2 % — % — % — % Past due 90 days or more and still accruing interest $ — $ 7,898 $ — $ — $ 7,898 Loans on non-accrual status 4 $ 11,301 $ — $ — $ — $ 11,301 1 The recorded investment for credit products includes only advances. The recorded investment for all other credit products is insignificant. 2 Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans dependent on their delinquency status. 3 Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total recorded investment for the portfolio class. 4 Loans on non-accrual status include $1,265,000 of troubled debt restructurings. Troubled debt restructurings are restructurings in which the FHLBank, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. |
Derivatives And Hedging Activ_2
Derivatives And Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Fair Value of Derivative Instruments | Table 8.1 presents outstanding notional amounts and fair values of the derivatives outstanding by type of derivative and by hedge designation as of December 31, 2019 and 2018 (in thousands). Total derivative assets and liabilities include the effect of netting adjustments and cash collateral. Table 8.1 12/31/2019 12/31/2018 Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Interest rate swaps $ 16,448,512 $ 23,462 $ 80,398 $ 8,345,925 $ 73,969 $ 24,177 Total derivatives designated as hedging relationships 16,448,512 23,462 80,398 8,345,925 73,969 24,177 Derivatives not designated as hedging instruments: Interest rate swaps 3,099,622 736 26,285 2,151,920 12,907 17,322 Interest rate caps/floors 1,130,000 117 — 1,373,200 1,044 — Mortgage delivery commitments 221,800 495 25 101,551 552 3 Consolidated obligation discount note commitments — — — 525,000 — — Total derivatives not designated as hedging instruments 4,451,422 1,348 26,310 4,151,671 14,503 17,325 TOTAL $ 20,899,934 24,810 106,708 $ 12,497,596 88,472 41,502 Netting adjustments and cash collateral 1 129,994 (106,506 ) (52,377 ) (33,618 ) DERIVATIVE ASSETS AND LIABILITIES $ 154,804 $ 202 $ 36,095 $ 7,884 1 Amounts represent the application of the netting requirements that allow the FHLBank to settle positive and negative positions, cash collateral, and related accrued interest held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $236,700,000 and $58,902,000 as of December 31, 2019 and 2018 , respectively. Cash collateral received was $200,000 and $77,661,000 as of December 31, 2019 and 2018 , respectively. |
Net Gains or Losses on Derivatives and Hedging Activities | For the years ended December 31, 2019, 2018, and 2017 , the FHLBank recorded net gains (losses) on derivatives and the related hedged items in fair value hedging relationships and the impact of those derivatives on the FHLBank’s net interest income and net gains (losses) on derivatives and hedging activities, if applicable, as presented in Table 8.2 (in thousands): Table 8.2 2019 Interest Income/Expense Advances Available-for-sale Securities Consolidated Obligation Discount Notes Consolidated Obligation Bonds Total amounts presented in the Statements of Income $ 716,199 $ 116,866 $ 532,155 $ 689,275 Gains (losses) on fair value hedging relationships: Interest rate contracts: Derivatives 1 $ (96,772 ) $ (140,821 ) $ 75 $ 27,229 Hedged items 2 115,323 139,828 138 (32,904 ) NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS $ 18,551 $ (993 ) $ 213 $ (5,675 ) 2018 3 Interest Income/Expense Non-interest Income Advances Available-for-sale Securities Consolidated Obligation Discount Notes Consolidated Obligation Bonds Net gains (losses) on derivatives and hedging activities Gains (losses) on fair value hedging relationships: Interest rate contracts: Derivatives 1 $ 9,653 $ 474 $ 12 $ (5,178 ) $ 21,360 Hedged items 2 (3,881 ) — — — (27,650 ) NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS $ 5,772 $ 474 $ 12 $ (5,178 ) $ (6,290 ) 2017 3 Interest Income/Expense Non-interest Income Advances Available-for-sale Securities Consolidated Obligation Discount Notes Consolidated Obligation Bonds Net gains (losses) on derivatives and hedging activities Gains (losses) on fair value hedging relationships: Interest rate contracts: Derivatives 1 $ (43,547 ) $ (9,271 ) $ (15 ) $ 14,514 $ 50,916 Hedged items 2 (5,381 ) — — — (54,768 ) NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS $ (48,928 ) $ (9,271 ) $ (15 ) $ 14,514 $ (3,852 ) 1 Includes net interest settlements in interest income/expense. 2 Includes amortization/accretion on closed fair value relationships in interest income. 3 Prior period amounts were not conformed to new hedge accounting guidance adopted January 1, 2019. Table 8.4 provides information regarding gains and losses on derivatives and hedging activities recorded in non-interest income (in thousands). For fair value hedging relationships, the portion of net gains (losses) representing hedge ineffectiveness are recorded in non-interest income for periods prior to January 1, 2019. Table 8.4 2019 2018 2017 Derivatives designated as hedging instruments: Interest rate swaps $ (6,290 ) $ (3,852 ) Total net gains (losses) related to fair value hedge ineffectiveness (6,290 ) (3,852 ) Derivatives not designated as hedging instruments: Economic hedges: Interest rate swaps $ (56,961 ) 10,114 19,391 Interest rate caps/floors (927 ) 33 (3,848 ) Net interest settlements (3,974 ) (5,476 ) (15,143 ) Mortgage delivery commitments 4,309 (1,642 ) 2,207 Consolidated obligation discount note commitments (70 ) 70 — Total net gains (losses) related to derivatives not designated as hedging instruments (57,623 ) 3,099 2,607 NET GAINS (LOSSES) ON DERIVATIVES AND HEDGING ACTIVITIES $ (57,623 ) $ (3,191 ) $ (1,245 ) |
Cumulative Basis Adjustments for Fair Value Hedges | Table 8.3 presents the cumulative basis adjustments on hedged items designated as fair value hedges and the related amortized cost of the hedged items as of December 31, 2019 (in thousands): Table 8.3 12/31/2019 Line Item in Statement of Condition of Hedged Item Carrying Value of Hedged Asset/(Liability) 1 Basis Adjustments for Active Hedging Relationships 2 Basis Adjustments for Discontinued Hedging Relationships 2 Cumulative Amount of Fair Value Hedging Basis Adjustments 2 Advances $ 4,951,445 $ 69,643 $ 1,424 $ 71,067 Available-for-sale securities 7,155,712 79,141 — 79,141 Consolidated obligation bonds (3,270,635 ) (26,389 ) — (26,389 ) 1 Includes only the portion of carrying value representing the hedged items in fair value hedging relationships. For available-for-sale securities, amortized cost is considered to be carrying value (i.e., the fair value adjustment recorded in accumulated OCI (AOCI) is excluded). 2 Included in amortized cost of the hedged asset/liability. |
Net Gains or Losses on Derivatives Not Designated as Hedging Instruments | Table 8.4 provides information regarding gains and losses on derivatives and hedging activities recorded in non-interest income (in thousands). For fair value hedging relationships, the portion of net gains (losses) representing hedge ineffectiveness are recorded in non-interest income for periods prior to January 1, 2019. Table 8.4 2019 2018 2017 Derivatives designated as hedging instruments: Interest rate swaps $ (6,290 ) $ (3,852 ) Total net gains (losses) related to fair value hedge ineffectiveness (6,290 ) (3,852 ) Derivatives not designated as hedging instruments: Economic hedges: Interest rate swaps $ (56,961 ) 10,114 19,391 Interest rate caps/floors (927 ) 33 (3,848 ) Net interest settlements (3,974 ) (5,476 ) (15,143 ) Mortgage delivery commitments 4,309 (1,642 ) 2,207 Consolidated obligation discount note commitments (70 ) 70 — Total net gains (losses) related to derivatives not designated as hedging instruments (57,623 ) 3,099 2,607 NET GAINS (LOSSES) ON DERIVATIVES AND HEDGING ACTIVITIES $ (57,623 ) $ (3,191 ) $ (1,245 ) |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Deposits | Table 9.1 details the types of deposits held by the FHLBank as of December 31, 2019 and 2018 (in thousands): Table 9.1 12/31/2019 12/31/2018 Interest-bearing: Demand $ 383,197 $ 265,021 Overnight 280,300 158,300 Total interest-bearing 663,497 423,321 Non-interest-bearing: Other 127,143 50,499 Total non-interest-bearing 127,143 50,499 TOTAL DEPOSITS $ 790,640 $ 473,820 |
Consolidated Obligations (Table
Consolidated Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Consolidated Bonds Obligations Outstanding By Maturity | Table 10.1 presents the FHLBank’s participation in consolidated obligation bonds outstanding as of December 31, 2019 and 2018 (dollar amounts in thousands): Table 10.1 12/31/2019 12/31/2018 Year of Contractual Maturity Amount Weighted Average Interest Rate Amount Weighted Average Interest Rate Due in one year or less $ 15,991,800 1.79 % $ 8,960,500 2.17 % Due after one year through two years 6,318,350 1.90 5,625,750 2.28 Due after two years through three years 1,375,000 2.11 2,285,100 2.11 Due after three years through four years 1,285,900 2.39 1,134,750 2.21 Due after four years through five years 1,223,350 2.40 1,087,900 2.58 Thereafter 5,776,300 2.78 4,879,850 3.01 Total par value 31,970,700 2.05 % 23,973,850 2.38 % Premiums 34,789 15,591 Discounts (3,357 ) (4,088 ) Concession fees (15,207 ) (12,445 ) Hedging adjustments 26,389 (6,514 ) TOTAL $ 32,013,314 $ 23,966,394 Table 10.2 summarizes the FHLBank’s participation in consolidated obligation bonds outstanding by year of maturity, or by the next call date for callable bonds as of December 31, 2019 and 2018 (in thousands): Table 10.2 Year of Maturity or Next Call Date 12/31/2019 12/31/2018 Due in one year or less $ 24,583,300 $ 16,971,500 Due after one year through two years 5,148,350 5,270,750 Due after two years through three years 615,000 655,100 Due after three years through four years 682,400 319,750 Due after four years through five years 356,850 275,150 Thereafter 584,800 481,600 TOTAL PAR VALUE $ 31,970,700 $ 23,973,850 |
Consolidated Bonds by Interest-Rate Payment Type | Table 10.3 summarizes interest rate payment terms for consolidated obligation bonds as of December 31, 2019 and 2018 (in thousands): Table 10.3 12/31/2019 12/31/2018 Simple variable rate $ 16,017,000 $ 10,095,000 Fixed rate 15,573,700 12,858,850 Variable rate with cap 220,000 20,000 Step 110,000 470,000 Fixed to variable rate 50,000 515,000 Range — 15,000 TOTAL PAR VALUE $ 31,970,700 $ 23,973,850 |
Consolidated Discount Notes Outstanding | Table 10.4 summarizes the FHLBank’s participation in consolidated obligation discount notes, all of which are due within one year (dollar amounts in thousands): Table 10.4 Book Value Par Value Weighted Average Interest Rate 1 December 31, 2019 $ 27,447,911 $ 27,510,042 1.54 % December 31, 2018 $ 20,608,332 $ 20,649,098 2.35 % 1 Represents yield to maturity excluding concession fees. |
Affordable Housing Program (Tab
Affordable Housing Program (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Affordable Housing Program [Abstract] | |
Analysis of AHP Liability | Table 11.1 details the change in the AHP liability for the years ended December 31, 2019, 2018, and 2017 (in thousands): Table 11.1 2019 2018 2017 Appropriated and reserved AHP funds as of the beginning of the period $ 43,081 $ 43,005 $ 33,242 AHP set aside based on current year income 20,597 18,944 21,934 Direct grants disbursed (20,973 ) (19,027 ) (12,752 ) Recaptured funds 1 322 159 581 Appropriated and reserved AHP funds as of the end of the period $ 43,027 $ 43,081 $ 43,005 1 Recaptured funds are direct grants returned to the FHLBank in those instances where the commitments associated with the approved use of funds are not met and repayment to the FHLBank is required by regulation. Recaptured funds are returned as a result of: (1) AHP-assisted homeowner’s transfer or sale of property within the five-year retention period that the assisted homeowner is required to occupy the property; (2) homeowner’s failure to acquire sufficient loan funding (funds previously approved and disbursed cannot be used); (3) over-subsidized projects; or (4) previously disbursed but unused grants. |
Assets and Liabilities Subjec_2
Assets and Liabilities Subject to Offsetting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Offsetting [Abstract] | |
Schedule of Offsetting Assets | Tables 12.1 and 12.2 present the fair value of financial assets, including the related collateral received from or pledged to clearing agents or counterparties, based on the terms of the FHLBank’s master netting arrangements or similar agreements as of December 31, 2019 and 2018 (in thousands): Table 12.1 12/31/2019 Description Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Condition Net Amounts of Assets Presented in the Statement of Condition Gross Amounts Not Offset in the Statement of Condition 1 Net Amount Derivative assets: Uncleared derivatives $ 21,749 $ (14,424 ) $ 7,325 $ (495 ) $ 6,830 Cleared derivatives 3,061 144,418 147,479 — 147,479 Total derivative assets 24,810 129,994 154,804 (495 ) 154,309 Securities purchased under agreements to resell 4,750,000 — 4,750,000 (4,750,000 ) — TOTAL $ 4,774,810 $ 129,994 $ 4,904,804 $ (4,750,495 ) $ 154,309 1 Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments). Table 12.2 12/31/2018 Description Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Condition Net Amounts of Assets Presented in the Statement of Condition Gross Amounts Not Offset in the Statement of Condition 1 Net Amount Derivative assets: Uncleared derivatives $ 88,296 $ (83,378 ) $ 4,918 $ (1,618 ) $ 3,300 Cleared derivatives 176 31,001 31,177 — 31,177 Total derivative assets 88,472 (52,377 ) 36,095 (1,618 ) 34,477 Securities purchased under agreements to resell 1,251,096 — 1,251,096 (1,251,096 ) — TOTAL $ 1,339,568 $ (52,377 ) $ 1,287,191 $ (1,252,714 ) $ 34,477 1 Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments). |
Schedule of Offsetting Liabilities | Tables 12.3 and 12.4 present the fair value of financial liabilities, including the related collateral received from or pledged to counterparties, based on the terms of the FHLBank’s master netting arrangements or similar agreements as of December 31, 2019 and 2018 (in thousands): Table 12.3 12/31/2019 Description Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Condition Net Amounts of Liabilities Presented in the Statement of Condition Gross Amounts Not Offset in the Statement of Condition 1 Net Amount Derivative liabilities: Uncleared derivatives $ 105,468 $ (105,266 ) $ 202 $ (25 ) $ 177 Cleared derivatives 1,240 (1,240 ) — — — Total derivative liabilities 106,708 (106,506 ) 202 (25 ) 177 TOTAL $ 106,708 $ (106,506 ) $ 202 $ (25 ) $ 177 1 Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments). Table 12.4 12/31/2018 Description Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Condition Net Amounts of Liabilities Presented in the Statement of Condition Gross Amounts Not Offset in the Statement of Condition 1 Net Amount Derivative liabilities: Uncleared derivatives $ 36,363 $ (28,479 ) $ 7,884 $ (3 ) $ 7,881 Cleared derivatives 5,139 (5,139 ) — — — Total derivative liabilities 41,502 (33,618 ) 7,884 (3 ) 7,881 TOTAL $ 41,502 $ (33,618 ) $ 7,884 $ (3 ) $ 7,881 1 Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments). |
Capital (Tables)
Capital (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Regulatory Capital Requirements | Table 13.1 illustrates that the FHLBank was in compliance with its regulatory capital requirements as of December 31, 2019 and 2018 (dollar amounts in thousands): Table 13.1 12/31/2019 12/31/2018 Required Actual Required Actual Regulatory capital requirements: Risk-based capital $ 486,650 $ 2,319,531 $ 387,729 $ 2,193,001 Total regulatory capital-to-asset ratio 4.0 % 4.4 % 4.0 % 5.1 % Total regulatory capital $ 2,531,066 $ 2,768,680 $ 1,908,610 $ 2,442,156 Leverage capital ratio 5.0 % 6.2 % 5.0 % 7.4 % Leverage capital $ 3,163,833 $ 3,928,446 $ 2,385,763 $ 3,538,656 |
Mandatorily Redeemable Capital Stock By Contractual Year Of Repurchase | Table 13.2 presents a roll-forward of mandatorily redeemable capital stock for the years ended December 31, 2019, 2018, and 2017 (in thousands): Table 13.2 2019 2018 2017 Balance, beginning of period $ 3,597 $ 5,312 $ 2,670 Capital stock subject to mandatory redemption reclassified from equity during the period 283,831 1,040,316 779,979 Redemption or repurchase of mandatorily redeemable capital stock during the period (285,150 ) (1,042,258 ) (777,530 ) Stock dividend classified as mandatorily redeemable capital stock during the period 137 227 193 Balance, end of period $ 2,415 $ 3,597 $ 5,312 Table 13.3 shows the amount of mandatorily redeemable capital stock by contractual year of redemption as of December 31, 2019 and 2018 (in thousands). The year of redemption in Table 13.3 is the end of the redemption period in accordance with the FHLBank’s capital plan. The FHLBank is not required to redeem or repurchase membership stock until six months (for Class A Common Stock) or five years (for Class B Common Stock) after the FHLBank receives notice for withdrawal from the member. Additionally, the FHLBank is not required to redeem or repurchase activity-based stock until any activity-based stock becomes excess stock as a result of an activity no longer remaining outstanding. However, the FHLBank intends to repurchase the excess activity-based stock of non-members to the extent that it can do so and still meet its regulatory capital requirements. Table 13.3 Contractual Year of Repurchase 12/31/2019 12/31/2018 Year 1 $ — $ — Year 2 1 — Year 3 869 1 Year 4 — 1,798 Year 5 — — Past contractual redemption date due to remaining activity 1 1,545 1,798 TOTAL $ 2,415 $ 3,597 1 Represents mandatorily redeemable capital stock that is past the end of the contractual redemption period because there is activity outstanding to which the mandatorily redeemable capital stock relates. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income Or Loss | Table 14.1 summarizes the changes in AOCI for the years ended December 31, 2019, 2018, and 2017 (in thousands): Table 14.1 Net Unrealized Gains (Losses) on Available-for-Sale Securities (Note 4) Net Non-Credit Portion of Other-than-temporary Impairment Gains (Losses) on Held-to-maturity Securities (Note 4) Defined Benefit Pension Plan (Note 15) Total AOCI Balance at December 31, 2016 $ 9,345 $ (5,841 ) $ (2,927 ) $ 577 Other comprehensive income (loss) before reclassification: Unrealized gains (losses) 21,861 21,861 Non-credit other-than-temporary impairment losses (61 ) (61 ) Accretion of non-credit other-than-temporary impairment loss 1,337 1,337 Net gains (losses) - defined benefit pension plan 885 885 Settlement charges - defined benefit pension plan 279 279 Reclassifications from other comprehensive income (loss) to net income: Non-credit other-than-temporary impairment to credit other-than-temporary impairment 1 402 402 Amortization of net losses - defined benefit pension plan 2 378 378 Net current period other comprehensive income (loss) 21,861 1,678 1,542 25,081 Balance at December 31, 2017 $ 31,206 $ (4,163 ) $ (1,385 ) $ 25,658 Other comprehensive income (loss) before reclassification: Unrealized gains (losses) (12,138 ) (12,138 ) Accretion of non-credit other-than-temporary impairment loss 513 513 Non-credit other-than-temporary impairment losses included in basis of securities sold 3,625 3,625 Net gains (losses) - defined benefit pension plan (2,389 ) (2,389 ) Reclassifications from other comprehensive income (loss) to net income: Non-credit other-than-temporary impairment to credit other-than-temporary impairment 1 25 25 Amortization of net losses - defined benefit pension plan 2 399 399 Net current period other comprehensive income (loss) (12,138 ) 4,163 (1,990 ) (9,965 ) Balance at December 31, 2018 $ 19,068 $ — $ (3,375 ) $ 15,693 Other comprehensive income (loss) before reclassification: Unrealized gains (losses) 7,720 7,720 Net gains (losses) - defined benefit pension plan (1,806 ) (1,806 ) Curtailment gains (losses) - defined benefit pension plan 2,845 2,845 Reclassifications from other comprehensive income (loss) to net income: Amortization of net losses - defined benefit pension plan 2 334 334 Net current period other comprehensive income (loss) 7,720 — 1,373 9,093 Balance at December 31, 2019 $ 26,788 $ — $ (2,002 ) $ 24,786 1 Recorded in “Other” non-interest income on the Statements of Income. Amount represents a debit (decrease to other income (loss)). 2 Recorded in “Other” non-interest expense on the Statements of Income. Amount represents a debit (increase to other expenses). |
Pension And Other Postretirem_2
Pension And Other Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Funded Status [Table Text Block] | Table 15.1 presents the net pension cost and funded status of the FHLBank relating to the Pentegra Defined Benefit Plan (dollar amounts in thousands): Table 15.1 2019 2018 2017 Net pension cost charged to compensation and benefits expense $ 688 $ 3,528 $ 3,510 Pentegra Defined Benefit Plan funded status as of July 1 1 108.6 % 111.0 % 111.8 % FHLBank's funded status as of July 1 104.6 % 111.1 % 110.9 % 1 The funded status as of July 1, 2019 is preliminary and may increase because the plan’s participants are permitted to make contributions for the plan year ended June 30, 2019 through March 15, 2020 . Contributions made on or before March 15, 2020 , and designated for the plan year ended June 30, 2019 , will be included in the final valuation as of July 1, 2019 . The final funded status as of July 1, 2019 will not be available until the Form 5500 for the plan year July 1, 2019 through June 30, 2020 is filed (this Form 5500 is due to be filed no later than April 2021 ). The funded status as of July 1, 2018 is preliminary and may increase because the plan’s participants were permitted to make contributions for the plan year ended June 30, 2018 through March 15, 2019 . Contributions made on or before March 15, 2019 , and designated for the plan year ended June 30, 2018 , will be included in the final valuation as of July 1, 2018 . The final funded status as of July 1, 2018 will not be available until the Form 5500 for the plan year July 1, 2018 through June 30, 2019 is filed (this Form 5500 is due to be filed no later than April 2020 ). |
Benefit Obligation, Fair Value of Plan Assets, and Funded Status [Table Text Block] | The obligations and funding status of the defined benefit portion of the FHLBank’s BEP as of December 31, 2019 and 2018 are presented in Table 15.2 (in thousands): Table 15.2 2019 2018 Change in benefit obligation: Projected benefit obligation at beginning of year $ 14,519 $ 12,313 Service cost 236 222 Interest cost 566 506 Net (gains) losses 1,806 2,389 Benefits paid (910 ) (911 ) Curtailment (2,845 ) — Projected benefit obligation at end of year 13,372 14,519 Change in plan assets: Fair value of plan assets at beginning of year — — Employer contributions 910 911 Benefits paid (910 ) (911 ) Fair value of plan assets at end of year — — FUNDED STATUS $ (13,372 ) $ (14,519 ) |
Schedule of Net Benefit Costs [Table Text Block] | Table 15.3 presents the components of the net periodic pension cost for the defined benefit portion of the FHLBank’s BEP for the years ended December 31, 2019, 2018, and 2017 (in thousands): Table 15.3 2019 2018 2017 Service cost $ 236 $ 222 $ 331 Interest cost 566 506 558 Amortization of net losses 334 399 378 Settlement charges — — 279 NET PERIODIC POSTRETIREMENT BENEFIT COST $ 1,136 $ 1,127 $ 1,546 |
Schedule of Assumptions Used [Table Text Block] | Table 15.4 presents the key assumptions and other information for the actuarial calculations for the defined benefit portion of the FHLBank’s BEP for the years ended December 31, 2019, 2018, and 2017 (dollar amounts in thousands): Table 15.4 2019 2018 2017 Discount rate - benefit obligation 3.00 % 4.00 % 3.50 % Discount rate - net periodic benefit cost 4.00 % 3.50 % 4.00 % Salary increases - benefit obligation — % 4.89 % 4.90 % Amortization period (years) - net periodic benefit cost 6 6 6 Accumulated benefit obligation $ 13,372 $ 11,105 $ 9,473 |
Schedule of Expected Benefit Payments [Table Text Block] | The FHLBank’s estimated future benefit payments are presented in Table 15.5 (in thousands): Table 15.5 Year ending December 31, Estimated Benefit Payments 2020 $ 1,198 2021 1,211 2022 1,206 2023 1,223 2024 403 2025 through 2029 2,312 |
Fair Values (Tables)
Fair Values (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Summary | The carrying value, fair value and fair value hierarchy of the FHLBank’s financial assets and liabilities as of December 31, 2019 and 2018 are summarized in Tables 16.1 and 16.2 (in thousands): Table 16.1 12/31/2019 Carrying Value Total Fair Value Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Assets: Cash and due from banks $ 1,917,166 $ 1,917,166 $ 1,917,166 $ — $ — $ — Interest-bearing deposits 921,453 921,453 — 921,453 — — Securities purchased under agreements to resell 4,750,000 4,750,000 — 4,750,000 — — Federal funds sold 850,000 850,000 — 850,000 — — Trading securities 2,812,562 2,812,562 — 2,812,562 — — Available-for-sale securities 7,182,500 7,182,500 — 7,182,500 — — Held-to-maturity securities 3,569,958 3,556,938 — 3,476,084 80,854 — Advances 30,241,315 30,295,813 — 30,295,813 — — Mortgage loans held for portfolio, net of allowance 10,633,009 10,983,356 — 10,981,458 1,898 — Accrued interest receivable 143,765 143,765 — 143,765 — — Derivative assets 154,804 154,804 — 24,810 — 129,994 Liabilities: Deposits 790,640 790,640 — 790,640 — — Consolidated obligation discount notes 27,447,911 27,448,021 — 27,448,021 — — Consolidated obligation bonds 32,013,314 32,103,154 — 32,103,154 — — Mandatorily redeemable capital stock 2,415 2,415 2,415 — — — Accrued interest payable 117,580 117,580 — 117,580 — — Derivative liabilities 202 202 — 106,708 — (106,506 ) Other Asset (Liability): Industrial revenue bonds 35,000 34,850 — 34,850 — — Financing obligation payable (35,000 ) (34,850 ) — (34,850 ) — — 1 Represents the effect of legally enforceable master netting agreements that allow the FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty . Table 16.2 12/31/2018 Carrying Value Total Fair Value Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Assets: Cash and due from banks $ 15,060 $ 15,060 $ 15,060 $ — $ — $ — Interest-bearing deposits 670,660 670,660 — 670,660 — — Securities purchased under agreements to resell 1,251,096 1,251,096 — 1,251,096 — — Federal funds sold 50,000 50,000 — 50,000 — — Trading securities 2,151,113 2,151,113 — 2,151,113 — — Available-for-sale securities 1,725,640 1,725,640 — 1,725,640 — — Held-to-maturity securities 4,456,873 4,447,078 — 4,364,127 82,951 — Advances 28,730,113 28,728,201 — 28,728,201 — — Mortgage loans held for portfolio, net of allowance 8,410,462 8,388,885 — 8,387,425 1,460 — Accrued interest receivable 109,366 109,366 — 109,366 — — Derivative assets 36,095 36,095 — 88,472 — (52,377 ) Liabilities: Deposits 473,820 473,820 — 473,820 — — Consolidated obligation discount notes 20,608,332 20,606,743 — 20,606,743 — — Consolidated obligation bonds 23,966,394 23,727,705 — 23,727,705 — — Mandatorily redeemable capital stock 3,597 3,597 3,597 — — — Accrued interest payable 87,903 87,903 — 87,903 — — Derivative liabilities 7,884 7,884 — 41,502 — (33,618 ) Other Asset (Liability): Industrial revenue bonds 35,000 32,154 — 32,154 — — Financing obligation payable (35,000 ) (32,154 ) — (32,154 ) — — 1 Represents the effect of legally enforceable master netting agreements that allow the FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty. |
Hierarchy Level for Financial Assets and Liabilities - Recurring and Nonrecurring | Tables 16.3 and 16.4 present, for each hierarchy level, the FHLBank’s assets and liabilities that are measured at fair value on a recurring or nonrecurring basis on the Statements of Condition as of or for the periods ended December 31, 2019 and 2018 (in thousands). Table 16.3 12/31/2019 Total Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Recurring fair value measurements - Assets: Trading securities: U.S. Treasury obligations $ 1,530,518 $ — $ 1,530,518 $ — $ — GSE obligations 416,025 — 416,025 — — GSE MBS 866,019 — 866,019 — — Total trading securities 2,812,562 — 2,812,562 — — Available-for-sale securities: U.S. Treasury obligations 4,261,791 — 4,261,791 — — GSE MBS 2,920,709 — 2,920,709 — — Total available-for-sale securities 7,182,500 — 7,182,500 — — Derivative assets: Interest-rate related 154,309 — 24,315 — 129,994 Mortgage delivery commitments 495 — 495 — — Total derivative assets 154,804 — 24,810 — 129,994 TOTAL RECURRING FAIR VALUE MEASUREMENTS - ASSETS $ 10,149,866 $ — $ 10,019,872 $ — $ 129,994 Recurring fair value measurements - Liabilities: Derivative liabilities: Interest-rate related $ 177 $ — $ 106,683 $ — $ (106,506 ) Mortgage delivery commitments 25 — 25 — — Total derivative liabilities 202 — 106,708 — (106,506 ) TOTAL RECURRING FAIR VALUE MEASUREMENTS - LIABILITIES $ 202 $ — $ 106,708 $ — $ (106,506 ) Nonrecurring fair value measurements - Assets 2 : Impaired mortgage loans $ 1,909 $ — $ — $ 1,909 $ — Real estate owned 144 — — 144 — TOTAL NONRECURRING FAIR VALUE MEASUREMENTS - ASSETS $ 2,053 $ — $ — $ 2,053 $ — 1 Represents the effect of legally enforceable master netting agreements that allow the FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty. 2 Includes assets adjusted to fair value during the year ended December 31, 2019 and still outstanding as of December 31, 2019 . Table 16.4 12/31/2018 Total Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Recurring fair value measurements - Assets: Trading securities: U.S. Treasury obligations $ 252,377 $ — $ 252,377 $ — $ — GSE obligations 1,000,495 — 1,000,495 — — U.S. obligation MBS 467 — 467 — — GSE MBS 897,774 — 897,774 — — Total trading securities 2,151,113 — 2,151,113 — — Available-for-sale securities: GSE MBS 1,725,640 — 1,725,640 — — Total available-for-sale securities 1,725,640 — 1,725,640 — — Derivative assets: Interest-rate related 35,543 — 87,920 — (52,377 ) Mortgage delivery commitments 552 — 552 — — Total derivative assets 36,095 — 88,472 — (52,377 ) TOTAL RECURRING FAIR VALUE MEASUREMENTS - ASSETS $ 3,912,848 $ — $ 3,965,225 $ — $ (52,377 ) Recurring fair value measurements - Liabilities: Derivative liabilities: Interest-rate related $ 7,881 $ — $ 41,499 $ — $ (33,618 ) Mortgage delivery commitments 3 — 3 — — Total derivative liabilities 7,884 — 41,502 — (33,618 ) TOTAL RECURRING FAIR VALUE MEASUREMENTS - LIABILITIES $ 7,884 $ — $ 41,502 $ — $ (33,618 ) Nonrecurring fair value measurements - Assets 2 : Impaired mortgage loans $ 1,463 $ — $ — $ 1,463 $ — Real estate owned 1,028 — — 1,028 — TOTAL NONRECURRING FAIR VALUE MEASUREMENTS - ASSETS $ 2,491 $ — $ — $ 2,491 $ — 1 Represents the effect of legally enforceable master netting agreements that allow the FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty. 2 Includes assets adjusted to fair value during the year ended December 31, 2018 and still outstanding as of December 31, 2018 . |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Off Balance Sheet Commitments | As of December 31, 2019 and 2018 , off-balance sheet commitments are presented in Table 17.1 (in thousands): Table 17.1 12/31/2019 12/31/2018 Notional Amount Expire Within One Year Expire After One Year Total Expire Within One Year Expire After One Year Total Standby letters of credit outstanding $ 4,764,724 $ 4,335 $ 4,769,059 $ 3,824,497 $ 37,933 $ 3,862,430 Advance commitments outstanding 64,282 15,693 79,975 116,475 43,782 160,257 Commitments for standby bond purchases — 701,392 701,392 69,277 686,602 755,879 Commitments to fund or purchase mortgage loans 221,800 — 221,800 101,551 — 101,551 Commitments to issue consolidated discount notes, at par 411,161 — 411,161 1,825,000 — 1,825,000 |
Transactions With Stockholders
Transactions With Stockholders (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions, by Balance Sheet Grouping | Tables 18.1 and 18.2 present information on members that owned more than 10 percent of outstanding FHLBank regulatory capital stock as of December 31, 2019 and 2018 (dollar amounts in thousands). None of the officers or directors of these members currently serve on the FHLBank’s board of directors. Table 18.1 12/31/2019 Member Name State Total Class A Stock Par Value Percent of Total Class A Total Class B Stock Par Value Percent of Total Class B Total Capital Stock Par Value Percent of Total Capital Stock MidFirst Bank OK $ 500 0.1 % $ 385,825 29.2 % $ 386,325 21.8 % BOKF, N.A. OK 184,282 41.0 202,000 15.3 386,282 21.8 TOTAL $ 184,782 41.1 % $ 587,825 44.5 % $ 772,607 43.6 % Table 18.2 12/31/2018 Member Name State Total Class A Stock Par Value Percent of Total Class A Total Class B Stock Par Value Percent of Total Class B Total Capital Stock Par Value Percent of Total Capital Stock BOKF, N.A. OK $ 24,006 9.6 % $ 274,000 21.4 % $ 298,006 19.5 % MidFirst Bank OK 500 0.2 294,700 23.0 295,200 19.3 TOTAL $ 24,506 9.8 % $ 568,700 44.4 % $ 593,206 38.8 % Advance and deposit balances with members that owned more than 10 percent of outstanding FHLBank regulatory capital stock as of December 31, 2019 and 2018 are summarized in Table 18.3 (dollar amounts in thousands). Table 18.3 12/31/2019 12/31/2018 12/31/2019 12/31/2018 Member Name Outstanding Advances Percent of Total Outstanding Advances Percent of Total Outstanding Deposits Percent of Total Outstanding Deposits Percent of Total MidFirst Bank $ 8,585,000 28.5 % $ 6,560,000 22.8 % $ 1,030 0.1 % $ 331 0.1 % BOKF, N.A. 4,500,000 14.9 6,100,000 21.2 22,457 2.9 29,288 6.2 TOTAL $ 13,085,000 43.4 % $ 12,660,000 44.0 % $ 23,487 3.0 % $ 29,619 6.3 % |
Related Party Transactions, by Balance Sheet Grouping - Directors' | Table 18.4 presents information as of December 31, 2019 and 2018 for members that had an officer or director serving on the FHLBank’s board of directors (dollar amounts in thousands). Information is only included for the period in which the officer or director served on the FHLBank’s board of directors. Capital stock listed is regulatory capital stock, which includes mandatorily redeemable capital stock. Table 18.4 12/31/2019 12/31/2018 Outstanding Amount Percent of Total Outstanding Amount Percent of Total Advances $ 178,945 0.6 % $ 157,012 0.5 % Deposits $ 15,748 2.0 % $ 9,679 2.1 % Class A Common Stock $ 6,467 1.4 % $ 4,179 1.7 % Class B Common Stock 5,571 0.4 4,924 0.4 TOTAL CAPITAL STOCK $ 12,038 0.7 % $ 9,103 0.6 % |
Schedule Of Related Party Transactions, Mortgage Loans Disclosure | Table 18.5 presents mortgage loans acquired during the years ended December 31, 2019 and 2018 for members that had an officer or director serving on the FHLBank’s board of directors in 2019 or 2018 (dollar amounts in thousands). Information is only included for the period in which the officer or director served on the FHLBank’s board of directors. Table 18.5 2019 2018 Amount Percent of Total Amount Percent of Total Mortgage loans acquired $ 189,724 4.9 % $ 104,360 5.1 % |
Transactions With Other FHLBa_2
Transactions With Other FHLBanks (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Federal Home Loan Banks [Abstract] | |
Transactions With Other Federal Home Loan Banks [Table Text Block] | FHLBank Topeka had the following business transactions with other FHLBanks during the years ended December 31, 2019, 2018, and 2017 as presented in Table 19.1 (in thousands). All transactions occurred at market prices. Table 19.1 Business Activity 2019 2018 2017 Average overnight interbank loan balances to other FHLBanks 1 $ 2,529 $ 1,466 $ 4,534 Average overnight interbank loan balances from other FHLBanks 1 8,082 3,562 1,247 Average deposit balances with FHLBank of Chicago for interbank transactions 2 1,361 1,256 1,429 Transaction charges paid to FHLBank of Chicago for transaction service fees 3 6,938 5,687 4,854 Par amount of purchases of consolidated obligations issued on behalf of other FHLBanks 4 — — — _________ 1 Occasionally, the FHLBank loans (or borrows) short-term funds to (from) other FHLBanks. Interest income on loans to other FHLBanks is included in Other Interest Income and interest expense on borrowings from other FHLBanks is included in Other Interest Expense on the Statements of Income. 2 Balances are interest bearing and are classified on the Statements of Condition as interest-bearing deposits. 3 Fees are calculated monthly based on outstanding loans at the per annum rate in effect at origination. 4 Purchases of consolidated obligations issued on behalf of one FHLBank and purchased by the FHLBank occur at market prices with third parties and are accounted for in the same manner as similarly classified investments. Outstanding fair value balances totaling $111,173,000 and $108,242,000 as of December 31, 2019 and 2018 , respectively, are included in the non-MBS GSE obligations totals presented in Note 4 . Interest income earned on these securities totaled $3,429,000 , $3,429,000 , and $5,817,000 for the years ended December 31, 2019, 2018, and 2017 , respectively. |
Background Information (Details
Background Information (Details) | Dec. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Federal Home Loan Banks | 11 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative2) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Advances Market Settlement Convention (business days, or less) | 5 days | ||
Consolidated Obligations Market Settlement Convention (calendar days, or less) | 30 days | ||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Net | $ 46,619 | $ 48,167 | |
Accumulated depreciation and amortization related to premises, software and equipment | 24,202 | 21,106 | |
Depreciation and amortization | $ 3,127 | $ 2,975 | $ 2,282 |
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises, software and equipment, Useful life | 3 years | ||
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises, software and equipment, Useful life | 40 years |
Cash and Due from Banks (Detail
Cash and Due from Banks (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents [Abstract] | ||
Cash Pass-through Reserve, Federal Home Loan Bank | $ 3,820 | $ 2,044 |
Investment Securities Investmen
Investment Securities Investment Securities (Trading Securities by Major Security Type) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | $ 2,812,562 | $ 2,151,113 |
U.S. Treasury obligations [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 1,530,518 | 252,377 |
GSE obligations [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 416,025 | 1,000,495 |
Non-mortgage-backed securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 1,946,543 | 1,252,872 |
U.S. obligation MBS [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 0 | 467 |
GSE MBS [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 866,019 | 897,774 |
Mortgage-backed securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | $ 866,019 | $ 898,241 |
Investment Securities (Net Gain
Investment Securities (Net Gains (Losses) on Trading Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Net gains (losses) on trading securities held as of current period end | $ 69,865 | $ (19,186) | $ 10,657 |
Net gains (losses) on trading securities sold or matured prior to current period end | 396 | (2,724) | (3,743) |
NET GAINS (LOSSES) ON TRADING SECURITIES | $ 70,261 | $ (21,910) | $ 6,914 |
Investment Securities (Availabl
Investment Securities (Available-For-Sale Securities by Major Security Type) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 7,155,712 | $ 1,706,572 |
Gross Unrecognized Gains | 31,933 | 25,815 |
Gross Unrecognized Losses | (5,145) | (6,747) |
Fair Value | 7,182,500 | 1,725,640 |
U.S. Treasury obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,258,608 | |
Gross Unrecognized Gains | 3,580 | |
Gross Unrecognized Losses | (397) | |
Fair Value | 4,261,791 | |
Non-mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,258,608 | 0 |
Gross Unrecognized Gains | 3,580 | |
Gross Unrecognized Losses | (397) | |
Fair Value | 4,261,791 | 0 |
GSE MBS [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,897,104 | 1,706,572 |
Gross Unrecognized Gains | 28,353 | 25,815 |
Gross Unrecognized Losses | (4,748) | (6,747) |
Fair Value | 2,920,709 | $ 1,725,640 |
Mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,897,104 | |
Gross Unrecognized Gains | 28,353 | |
Gross Unrecognized Losses | (4,748) | |
Fair Value | $ 2,920,709 |
Investment Securities (Availa_2
Investment Securities (Available-for-sale securities with unrealized losses, fair value) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | $ 2,366,813 | $ 570,042 |
Less than 12 Months, Unrealized Losses | (1,329) | (6,747) |
12 Months or More, Fair Value | 301,161 | 0 |
12 Months or More, Unrealized Losses | (3,816) | 0 |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 2,667,974 | 570,042 |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | (5,145) | (6,747) |
U.S. Treasury obligations [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 1,579,004 | |
Less than 12 Months, Unrealized Losses | (397) | |
12 Months or More, Fair Value | 0 | |
12 Months or More, Unrealized Losses | 0 | |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 1,579,004 | |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | (397) | |
Non-mortgage-backed securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 1,579,004 | |
Less than 12 Months, Unrealized Losses | (397) | |
12 Months or More, Fair Value | 0 | |
12 Months or More, Unrealized Losses | 0 | |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 1,579,004 | |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | (397) | |
GSE MBS [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 787,809 | 570,042 |
Less than 12 Months, Unrealized Losses | (932) | (6,747) |
12 Months or More, Fair Value | 301,161 | 0 |
12 Months or More, Unrealized Losses | (3,816) | 0 |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 1,088,970 | 570,042 |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | (4,748) | $ (6,747) |
Mortgage-backed securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 787,809 | |
Less than 12 Months, Unrealized Losses | (932) | |
12 Months or More, Fair Value | 301,161 | |
12 Months or More, Unrealized Losses | (3,816) | |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 1,088,970 | |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | $ (4,748) |
Investment Securities (Availa_3
Investment Securities (Available-For-Sale Securities Classified By Contractual Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Amortized Cost | $ 7,155,712 | $ 1,706,572 |
Fair Value | 7,182,500 | 1,725,640 |
Non-mortgage-backed securities [Member] | ||
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Due in one year or less, Amortized Cost | 754,003 | 0 |
Due after one year through five years, Amortized Cost | 3,504,605 | 0 |
Due after five years through ten years, Amortized Cost | 0 | 0 |
Due after ten years, Amortized Cost | 0 | 0 |
Amortized Cost | 4,258,608 | 0 |
Due in one year or less, Fair Value | 753,891 | 0 |
Due after one year through five years, Fair Value | 3,507,900 | 0 |
Due after five years though ten years, Fair Value | 0 | 0 |
Due after ten years, Fair Value | 0 | 0 |
Fair Value | 4,261,791 | 0 |
Mortgage-backed securities [Member] | ||
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Amortized Cost | 2,897,104 | |
Mortgage-backed securities, Amortized Cost | 2,897,104 | 1,706,572 |
Mortgage-backed securities, Fair Value | 2,920,709 | $ 1,725,640 |
Fair Value | $ 2,920,709 |
Investment Securities (Held-To-
Investment Securities (Held-To-Maturity Securities by Major Security Type) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | $ 3,569,958 | $ 4,456,873 | |
Carrying Value | [1] | 3,569,958 | 4,456,873 |
Gross Unrecognized Gains | 6,563 | 12,290 | |
Gross Unrecognized Losses | (19,583) | (22,085) | |
Held-to-maturity, Fair Value | 3,556,938 | 4,447,078 | |
State or local housing agency obligations [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | 82,805 | 86,430 | |
Carrying Value | 82,805 | 86,430 | |
Gross Unrecognized Gains | 5 | 1 | |
Gross Unrecognized Losses | (1,956) | (3,480) | |
Held-to-maturity, Fair Value | 80,854 | 82,951 | |
Non-mortgage-backed securities [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | 82,805 | 86,430 | |
Carrying Value | 82,805 | 86,430 | |
Gross Unrecognized Gains | 5 | 1 | |
Gross Unrecognized Losses | (1,956) | (3,480) | |
Held-to-maturity, Fair Value | 80,854 | 82,951 | |
U.S. obligation MBS [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | 93,375 | 109,866 | |
Carrying Value | 93,375 | 109,866 | |
Gross Unrecognized Gains | 0 | 125 | |
Gross Unrecognized Losses | (496) | (99) | |
Held-to-maturity, Fair Value | 92,879 | 109,892 | |
GSE MBS [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | 3,393,778 | 4,260,577 | |
Carrying Value | 3,393,778 | 4,260,577 | |
Gross Unrecognized Gains | 6,558 | 12,164 | |
Gross Unrecognized Losses | (17,131) | (18,506) | |
Held-to-maturity, Fair Value | 3,383,205 | 4,254,235 | |
Mortgage-backed securities [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | 3,487,153 | 4,370,443 | |
Carrying Value | 3,487,153 | 4,370,443 | |
Gross Unrecognized Gains | 6,558 | 12,289 | |
Gross Unrecognized Losses | (17,627) | (18,605) | |
Held-to-maturity, Fair Value | $ 3,476,084 | $ 4,364,127 | |
[1] | Fair value: $3,556,938 and $4,447,078 as of December 31, 2019 and December 31, 2018, respectively. |
Investment Securities (Held-T_2
Investment Securities (Held-To-Maturity Securities in a Continuous Unrealized Loss Position) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | $ 452,343 | $ 1,655,048 |
Less Than 12 Months, Unrealized Losses | (1,750) | (4,769) |
12 Months or More, Fair Value | 2,475,088 | 1,624,950 |
12 Months or More, Unrealized Losses | (17,833) | (17,316) |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 2,927,431 | 3,279,998 |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | (19,583) | (22,085) |
State or local housing agency obligations [Member] | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 0 | 0 |
Less Than 12 Months, Unrealized Losses | 0 | 0 |
12 Months or More, Fair Value | 28,044 | 26,520 |
12 Months or More, Unrealized Losses | (1,956) | (3,480) |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 28,044 | 26,520 |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | (1,956) | (3,480) |
Non-mortgage-backed securities [Member] | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 0 | 0 |
Less Than 12 Months, Unrealized Losses | 0 | 0 |
12 Months or More, Fair Value | 28,044 | 26,520 |
12 Months or More, Unrealized Losses | (1,956) | (3,480) |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 28,044 | 26,520 |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | (1,956) | (3,480) |
U.S. obligation MBS [Member] | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 68,433 | 0 |
Less Than 12 Months, Unrealized Losses | (293) | 0 |
12 Months or More, Fair Value | 24,446 | 30,702 |
12 Months or More, Unrealized Losses | (203) | (99) |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 92,879 | 30,702 |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | (496) | (99) |
GSE MBS [Member] | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 383,910 | 1,655,048 |
Less Than 12 Months, Unrealized Losses | (1,457) | (4,769) |
12 Months or More, Fair Value | 2,422,598 | 1,567,728 |
12 Months or More, Unrealized Losses | (15,674) | (13,737) |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 2,806,508 | 3,222,776 |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | (17,131) | (18,506) |
Mortgage-backed securities [Member] | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 452,343 | 1,655,048 |
Less Than 12 Months, Unrealized Losses | (1,750) | (4,769) |
12 Months or More, Fair Value | 2,447,044 | 1,598,430 |
12 Months or More, Unrealized Losses | (15,877) | (13,836) |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 2,899,387 | 3,253,478 |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | $ (17,627) | $ (18,605) |
Investment Securities (Held-T_3
Investment Securities (Held-To-Maturity Securities Classified By Contractual Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Securities, Held-to-maturity, Maturity [Abstract] | |||
Amortized Cost | $ 3,569,958 | $ 4,456,873 | |
Carrying Value | [1] | 3,569,958 | 4,456,873 |
Fair Value | 3,556,938 | 4,447,078 | |
Non-mortgage-backed securities [Member] | |||
Debt Securities, Held-to-maturity, Maturity [Abstract] | |||
Due in one year or less, Amortized Cost | 0 | 0 | |
Due after one year through five years, Amortized Cost | 0 | 0 | |
Due after five years through ten years, Amortized Cost | 0 | 0 | |
Due after ten years, Amortized Cost | 82,805 | 86,430 | |
Amortized Cost | 82,805 | 86,430 | |
Due in one year or less, Carrying Value | 0 | 0 | |
Due after one year through five years, Carrying Value | 0 | 0 | |
Due after five years through ten years, Carrying Value | 0 | 0 | |
Due after ten years, Carrying Value | 82,805 | 86,430 | |
Carrying Value | 82,805 | 86,430 | |
Due in one year or less, Fair Value | 0 | 0 | |
Due after one year through five years, Fair Value | 0 | 0 | |
Due after five years through ten years, Fair Value | 0 | 0 | |
Due after ten years, Fair Value | 80,854 | 82,951 | |
Fair Value | 80,854 | 82,951 | |
Mortgage-backed securities [Member] | |||
Debt Securities, Held-to-maturity, Maturity [Abstract] | |||
Amortized Cost | 3,487,153 | 4,370,443 | |
Carrying Value | 3,487,153 | 4,370,443 | |
Fair Value | $ 3,476,084 | $ 4,364,127 | |
[1] | Fair value: $3,556,938 and $4,447,078 as of December 31, 2019 and December 31, 2018, respectively. |
Investment Securities Investm_2
Investment Securities Investment Securities (Proceeds from Sale and Gains and Losses on HTM Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sale of held-to-maturity securities | $ 9,442 | $ 87,827 | $ 0 |
Carrying value of held-to-maturity securities sold | (9,488) | (86,236) | |
NET REALIZED GAINS (LOSSES) | $ (46) | $ 1,591 | $ 0 |
Advances (Narrative) (Details)
Advances (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)Rate | Dec. 31, 2018USD ($)Rate | |
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, Advances, Par Value | $ | $ 30,172,055 | $ 28,777,749 |
Concentration Risk, Market Risk | The FHLBank’s potential credit risk from advances is concentrated in commercial banks and savings institutions | |
Concentration Risk, Benchmark Description | members that individually held 10 percent or more of the FHLBank’s advances | |
Concentration Risk Prior and Current Year Entity, Count | 2 | |
Minimum [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, outstanding interest rate | Rate | 0.96% | 0.88% |
Maximum [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, outstanding interest rate | Rate | 7.41% | 7.41% |
Credit Concentration Risk [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, Advances, Par Value | $ | $ 13,085,000 | $ 12,660,000 |
Concentration Risk, Percentage | 43.40% | 44.00% |
Advances (Advances Redemption T
Advances (Advances Redemption Terms) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Amount | ||
Due in one year or less | $ 13,188,118 | $ 14,844,804 |
Due after one year through two years | 10,448,433 | 1,482,844 |
Due after two years through three years | 1,254,153 | 1,442,333 |
Due after three years through four years | 1,067,662 | 7,496,058 |
Due after four years through five years | 1,208,854 | 816,702 |
Thereafter | 3,004,835 | 2,695,008 |
TOTAL PAR VALUE | 30,172,055 | 28,777,749 |
Discounts | (1,807) | (3,413) |
Hedging adjustments | 71,067 | (44,223) |
TOTAL | $ 30,241,315 | $ 28,730,113 |
Weighted Average Interest Rate | ||
Due in one year or less | 1.88% | 2.60% |
Due after one year through two years | 1.96% | 2.40% |
Due after two years through three years | 2.27% | 2.53% |
Due after three years through four years | 2.42% | 2.66% |
Due after four years through five years | 2.22% | 2.68% |
Thereafter | 2.25% | 2.58% |
Total par value | 1.99% | 2.60% |
Advances (Advances by Year of R
Advances (Advances by Year of Redemption Term, Next Call Date, or Next Convert Date) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Redemption Term, Year of Redemption Term or Next Call Date | ||
Due in one year or less | $ 24,271,238 | $ 23,343,939 |
Due after one year through two years | 1,133,077 | 1,271,660 |
Due after two years through three years | 728,429 | 1,021,189 |
Due after three years through four years | 764,990 | 555,901 |
Due after four years through five years | 686,594 | 598,282 |
Thereafter | 2,587,727 | 1,986,778 |
TOTAL PAR VALUE | 30,172,055 | 28,777,749 |
Redemption Term, Year of Redemption Term or Next Conversion Date | ||
Due in one year or less | 14,053,068 | 15,133,204 |
Due after one year through two years | 10,637,833 | 1,683,644 |
Due after two years through three years | 1,524,153 | 1,629,233 |
Due after three years through four years | 1,215,412 | 7,752,058 |
Due after four years through five years | 1,304,254 | 954,452 |
Thereafter | 1,437,335 | 1,625,158 |
TOTAL PAR VALUE | $ 30,172,055 | $ 28,777,749 |
Advances (Advances by Interest
Advances (Advances by Interest Rate Payment Terms) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fixed rate: | ||
Due in one year or less | $ 2,691,528 | $ 1,635,464 |
Due after one year | 5,912,124 | 5,455,193 |
Total fixed rate | 8,603,652 | 7,090,657 |
Variable rate: | ||
Due in one year or less | 10,496,590 | 13,209,340 |
Due after one year | 11,071,813 | 8,477,752 |
Total variable rate | 21,568,403 | 21,687,092 |
TOTAL PAR VALUE | $ 30,172,055 | $ 28,777,749 |
Mortgage Loans (Mortgage Loans
Mortgage Loans (Mortgage Loans Held For Portfolio) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | $ 10,475,653 | $ 8,290,943 | |
Premiums | 155,793 | 120,548 | |
Discounts | (2,503) | (2,936) | |
Deferred loan costs, net | 184 | 223 | |
Other deferred fees | (38) | (50) | |
Hedging adjustments | 4,905 | 2,546 | |
Total before Allowance for Credit Losses on Mortgage Loans | 10,633,994 | 8,411,274 | |
Allowance for Credit Losses on Mortgage Loans | (985) | (812) | |
MORTGAGE LOANS HELD FOR PORTFOLIO, NET | 10,633,009 | 8,410,462 | |
Fixed rates, medium-term [Member] | Single-family mortgage [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | [1] | 1,347,385 | 1,179,087 |
Fixed rates, long-term [Member] | Single-family mortgage [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | $ 9,128,268 | $ 7,111,856 | |
[1] | Medium-term defined as a term of 15 years or less at origination. |
Mortgage Loans (Mortgage Loan_2
Mortgage Loans (Mortgage Loans Held For Portfolio by Collateral or Guarantee Type) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total unpaid principal balance | $ 10,475,653 | $ 8,290,943 |
Government Loans [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total unpaid principal balance | 626,111 | 671,445 |
Conventional loans [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total unpaid principal balance | $ 9,849,542 | $ 7,619,498 |
Allowance For Credit Losses (Na
Allowance For Credit Losses (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Real estate owned | $ 874 | $ 2,183 |
Allowance For Credit Losses (CE
Allowance For Credit Losses (CE Fees Paid) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Receivables [Abstract] | ||||
CE fees paid to PFIs | [1] | $ 7,019 | $ 6,196 | $ 5,767 |
Performance-based CE fees recovered from PFIs | (125) | (107) | (103) | |
NET CE FEES PAID | $ 6,894 | $ 6,089 | $ 5,664 | |
[1] | CE fees paid to PFIs excludes the amortization of CE fees paid up front, which is included with premium amortization as a reduction to mortgage interest income. |
Allowance For Credit Losses (Ro
Allowance For Credit Losses (Rollforward of Allowance For Credit Losses On Mortgage Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for credit losses: | |||
Balance, beginning of period | $ 812 | ||
Provision (reversal) for credit losses | 387 | $ 27 | $ (186) |
Balance, end of period | 985 | 812 | |
Conventional loans [Member] | |||
Allowance for credit losses: | |||
Balance, beginning of period | 812 | 1,208 | 1,674 |
Net (charge-offs) recoveries | (214) | (423) | (280) |
Provision (reversal) for credit losses | 387 | 27 | (186) |
Balance, end of period | $ 985 | $ 812 | $ 1,208 |
Allowance For Credit Losses (Re
Allowance For Credit Losses (Recorded Investment by impairment Method) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for credit losses, end of period: | |||||
Individually evaluated for impairment | $ 0 | $ 50 | |||
Collectively evaluated for impairment | 985 | 762 | |||
TOTAL ALLOWANCE FOR CREDIT LOSSES | 985 | 812 | |||
Recorded investment, end of period: | |||||
Individually evaluated for impairment | 30,307,849 | 28,797,919 | |||
Collectively evaluated for impairment | 10,674,283 | 8,444,756 | |||
TOTAL RECORDED INVESTMENT | 40,982,132 | 37,242,675 | |||
Conventional Loan [Member] | |||||
Allowance for credit losses, end of period: | |||||
Individually evaluated for impairment | 0 | 50 | |||
Collectively evaluated for impairment | 985 | 762 | |||
TOTAL ALLOWANCE FOR CREDIT LOSSES | 985 | 812 | $ 1,208 | $ 1,674 | |
Recorded investment, end of period: | |||||
Individually evaluated for impairment | 12,068 | 8,679 | |||
Collectively evaluated for impairment | 10,036,462 | 7,760,900 | |||
TOTAL RECORDED INVESTMENT | 10,048,530 | 7,769,579 | |||
Government Loans [Member] | |||||
Allowance for credit losses, end of period: | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 0 | 0 | |||
TOTAL ALLOWANCE FOR CREDIT LOSSES | 0 | 0 | |||
Recorded investment, end of period: | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 637,821 | 683,856 | |||
TOTAL RECORDED INVESTMENT | 637,821 | 683,856 | |||
Credit Products [Member] | |||||
Allowance for credit losses, end of period: | |||||
Individually evaluated for impairment | [1] | 0 | 0 | ||
Collectively evaluated for impairment | [1] | 0 | 0 | ||
TOTAL ALLOWANCE FOR CREDIT LOSSES | [1] | 0 | 0 | ||
Recorded investment, end of period: | |||||
Individually evaluated for impairment | [1] | 30,286,952 | 28,777,274 | ||
Collectively evaluated for impairment | [1] | 0 | 0 | ||
TOTAL RECORDED INVESTMENT | [1] | 30,286,952 | 28,777,274 | ||
Direct Financing Lease Receivable [Member] | |||||
Allowance for credit losses, end of period: | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 0 | 0 | |||
TOTAL ALLOWANCE FOR CREDIT LOSSES | 0 | 0 | |||
Recorded investment, end of period: | |||||
Individually evaluated for impairment | 8,829 | 11,966 | |||
Collectively evaluated for impairment | 0 | 0 | |||
TOTAL RECORDED INVESTMENT | $ 8,829 | $ 11,966 | |||
[1] | The recorded investment for credit products includes only advances. The recorded investment for all other credit products is insignificant. |
Allowance For Credit Losses (_2
Allowance For Credit Losses (Recorded Investment in Delinquent Mortgage Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total past due | $ 109,021 | $ 77,741 | |||
Total current loans | 40,873,111 | 37,164,934 | |||
Total recorded investment | 40,982,132 | 37,242,675 | |||
In process of foreclosure, included above (Mortgage Loans) | [1] | 6,082 | 5,320 | ||
Past due 90 days or more and still accruing interest | 8,778 | 7,898 | |||
Loans on non-accrual status | 14,923 | [2] | 11,301 | [3] | |
Troubled debt restructurings included in non-accrual loans | 1,219 | 1,265 | |||
Past Due 30-59 days delinquent [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total past due | 74,741 | 48,810 | |||
Past Due 60-89 days delinquent [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total past due | 13,689 | 12,864 | |||
Past Due 90 days or more delinquent [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total past due | $ 20,591 | $ 16,067 | |||
Serious delinquency rate | [4] | 0.10% | 0.00% | ||
Conventional Loan [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total past due | $ 78,600 | $ 48,939 | |||
Total current loans | 9,969,930 | 7,720,640 | |||
Total recorded investment | 10,048,530 | 7,769,579 | |||
In process of foreclosure, included above (Mortgage Loans) | [1] | 3,352 | 2,922 | ||
Past due 90 days or more and still accruing interest | 0 | 0 | |||
Loans on non-accrual status | 14,923 | [2] | 11,301 | [3] | |
Conventional Loan [Member] | Past Due 30-59 days delinquent [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total past due | 59,226 | 34,020 | |||
Conventional Loan [Member] | Past Due 60-89 days delinquent [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total past due | 7,561 | 6,750 | |||
Conventional Loan [Member] | Past Due 90 days or more delinquent [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total past due | $ 11,813 | $ 8,169 | |||
Serious delinquency rate | [4] | 0.10% | 0.10% | ||
Government Loans [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total past due | $ 30,421 | $ 28,802 | |||
Total current loans | 607,400 | 655,054 | |||
Total recorded investment | 637,821 | 683,856 | |||
In process of foreclosure, included above (Mortgage Loans) | [1] | 2,730 | 2,398 | ||
Past due 90 days or more and still accruing interest | 8,778 | 7,898 | |||
Loans on non-accrual status | 0 | [2] | 0 | [3] | |
Government Loans [Member] | Past Due 30-59 days delinquent [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total past due | 15,515 | 14,790 | |||
Government Loans [Member] | Past Due 60-89 days delinquent [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total past due | 6,128 | 6,114 | |||
Government Loans [Member] | Past Due 90 days or more delinquent [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total past due | $ 8,778 | $ 7,898 | |||
Serious delinquency rate | [4] | 1.40% | 1.20% | ||
Credit Products [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total past due | [5] | $ 0 | $ 0 | ||
Total current loans | [5] | 30,286,952 | 28,777,274 | ||
Total recorded investment | [5] | 30,286,952 | 28,777,274 | ||
In process of foreclosure, included above | [1],[5] | 0 | 0 | ||
Past due 90 days or more and still accruing interest | [5] | 0 | 0 | ||
Loans on non-accrual status | [5] | 0 | [2] | 0 | [3] |
Credit Products [Member] | Past Due 30-59 days delinquent [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total past due | [5] | 0 | 0 | ||
Credit Products [Member] | Past Due 60-89 days delinquent [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total past due | [5] | 0 | 0 | ||
Credit Products [Member] | Past Due 90 days or more delinquent [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total past due | [5] | $ 0 | $ 0 | ||
Serious delinquency rate | [4],[5] | 0.00% | 0.00% | ||
Direct Financing Lease Receivable [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total past due | $ 0 | $ 0 | |||
Total current loans | 8,829 | 11,966 | |||
Total recorded investment | 8,829 | 11,966 | |||
In process of foreclosure, included above | [1] | 0 | 0 | ||
Past due 90 days or more and still accruing interest | 0 | 0 | |||
Loans on non-accrual status | 0 | [2] | 0 | [3] | |
Direct Financing Lease Receivable [Member] | Past Due 30-59 days delinquent [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total past due | 0 | 0 | |||
Direct Financing Lease Receivable [Member] | Past Due 60-89 days delinquent [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total past due | 0 | 0 | |||
Direct Financing Lease Receivable [Member] | Past Due 90 days or more delinquent [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total past due | $ 0 | $ 0 | |||
Serious delinquency rate | [4] | 0.00% | 0.00% | ||
[1] | Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans dependent on their delinquency status. | ||||
[2] | Loans on non-accrual status include $1,219,000 of troubled debt restructurings. Troubled debt restructurings are restructurings in which the FHLBank, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. | ||||
[3] | Loans on non-accrual status include $1,265,000 of troubled debt restructurings. Troubled debt restructurings are restructurings in which the FHLBank, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. | ||||
[4] | Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total recorded investment for the portfolio class. | ||||
[5] | The recorded investment for credit products includes only advances. The recorded investment for all other credit products is insignificant. |
Derivatives And Hedging Activ_3
Derivatives And Hedging Activities (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | |||
Advances Market Settlement Convention (business days, or less) | 5 days | ||
Consolidated Obligations Market Settlement Convention (calendar days, or less) | 30 days | ||
Gain (Loss) from Hedged Firm Commitment Not Qualifying as Interest Rate Fair Value Hedge, Net | $ 0 | $ 0 | $ 0 |
Uncleared derivatives [Member] | Counterparty One [Member] | |||
Derivative [Line Items] | |||
Maximum credit risk applicable to a single counterparty (at period end) | $ 211 | $ 25,799 |
Derivatives And Hedging Activ_4
Derivatives And Hedging Activities (Fair Values of Derivatives Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivatives, Fair Value [Line Items] | |||
TOTAL, Notional Amount | $ 20,899,934 | $ 12,497,596 | |
TOTAL, Derivative Assets | 24,810 | 88,472 | |
TOTAL, Derivative Liabilities | 106,708 | 41,502 | |
Netting adjustments and cash collateral, Derivative Assets | [1],[2] | 129,994 | (52,377) |
Netting adjustments and cash collateral, Derivative Liabilities | [1],[2] | (106,506) | (33,618) |
DERIVATIVE ASSETS | 154,804 | 36,095 | |
DERIVATIVE LIABILITIES | 202 | 7,884 | |
Cash collateral posted | 236,700 | 58,902 | |
Cash collateral received | 200 | 77,661 | |
Derivatives designated as hedging instruments: [Member] | |||
Derivatives, Fair Value [Line Items] | |||
TOTAL, Notional Amount | 16,448,512 | 8,345,925 | |
TOTAL, Derivative Assets | 23,462 | 73,969 | |
TOTAL, Derivative Liabilities | 80,398 | 24,177 | |
Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
TOTAL, Notional Amount | 4,451,422 | 4,151,671 | |
TOTAL, Derivative Assets | 1,348 | 14,503 | |
TOTAL, Derivative Liabilities | 26,310 | 17,325 | |
Interest rate swaps [Member] | Derivatives designated as hedging instruments: [Member] | |||
Derivatives, Fair Value [Line Items] | |||
TOTAL, Notional Amount | 16,448,512 | 8,345,925 | |
TOTAL, Derivative Assets | 23,462 | 73,969 | |
TOTAL, Derivative Liabilities | 80,398 | 24,177 | |
Interest rate swaps [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
TOTAL, Notional Amount | 3,099,622 | 2,151,920 | |
TOTAL, Derivative Assets | 736 | 12,907 | |
TOTAL, Derivative Liabilities | 26,285 | 17,322 | |
Interest rate caps/floors [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
TOTAL, Notional Amount | 1,130,000 | 1,373,200 | |
TOTAL, Derivative Assets | 117 | 1,044 | |
TOTAL, Derivative Liabilities | 0 | 0 | |
Mortgage delivery commitments [Member] | Not Designated as Hedging Instrument [Member] | Mortgage Receivable [Member] | |||
Derivatives, Fair Value [Line Items] | |||
TOTAL, Notional Amount | 221,800 | 101,551 | |
TOTAL, Derivative Assets | 495 | 552 | |
TOTAL, Derivative Liabilities | 25 | 3 | |
Consolidated obligation discount note commitments [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
TOTAL, Notional Amount | 0 | 525,000 | |
TOTAL, Derivative Assets | 0 | 0 | |
TOTAL, Derivative Liabilities | $ 0 | $ 0 | |
[1] | Amounts represent the application of the netting requirements that allow the FHLBank to settle positive and negative positions, cash collateral, and related accrued interest held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $236,700,000 and $58,902,000 as of December 31, 2019 and 2018, respectively. Cash collateral received was $200,000 and $77,661,000 as of December 31, 2019 and 2018, respectively. | ||
[2] | Represents the effect of legally enforceable master netting agreements that allow the FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty. |
Derivatives And Hedging Activ_5
Derivatives And Hedging Activities (Net Gains or Losses on Derivatives and Hedging Activities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Total amounts presented in the Statements of Income, Advances | $ 716,199 | $ 637,203 | $ 402,071 | |||
Total amounts presented in the Statements of Income, Available-for-sale Securities | 116,866 | 46,154 | 24,364 | |||
Total amounts presented in the Statements of Income, Consolidated Obligations Discount Notes | 532,155 | 451,380 | 237,019 | |||
Total amounts presented in the Statements of Income, Consolidated Obligations Bonds | 689,275 | 524,255 | 320,895 | |||
NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS | (6,290) | (3,852) | ||||
Interest Rate Contract [Member] | Advances [Member] | Interest Income [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivatives1 | [1] | (96,772) | ||||
Hedged items2 | [2] | 115,323 | ||||
Derivatives1 | [1],[3] | 9,653 | (43,547) | |||
Hedged items2 | [2],[3] | (3,881) | (5,381) | |||
NET GAINS (LOSSES) OF FAIR VALUE HEDGING RELATIONSHIPS (INTEREST INCOME/EXPENSE) | 18,551 | 5,772 | [3] | (48,928) | [3] | |
Interest Rate Contract [Member] | Available-for-sale Securities [Member] | Interest Income [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivatives1 | [1] | (140,821) | ||||
Hedged items2 | [2] | 139,828 | ||||
Derivatives1 | [1],[3] | 474 | (9,271) | |||
Hedged items2 | [2],[3] | 0 | 0 | |||
NET GAINS (LOSSES) OF FAIR VALUE HEDGING RELATIONSHIPS (INTEREST INCOME/EXPENSE) | (993) | 474 | [3] | (9,271) | [3] | |
Interest Rate Contract [Member] | Consolidated Obligations Discount Notes [Member] | Interest Expense [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivatives1 | [1] | 75 | ||||
Hedged items2 | [2] | 138 | ||||
Derivatives1 | [1],[3] | 12 | (15) | |||
Hedged items2 | [2],[3] | 0 | 0 | |||
NET GAINS (LOSSES) OF FAIR VALUE HEDGING RELATIONSHIPS (INTEREST INCOME/EXPENSE) | 213 | 12 | [3] | (15) | [3] | |
Interest Rate Contract [Member] | Consolidated Obligations Bonds [Member] | Interest Expense [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivatives1 | [1] | 27,229 | ||||
Hedged items2 | [2] | (32,904) | ||||
Derivatives1 | [1],[3] | (5,178) | 14,514 | |||
Hedged items2 | [2],[3] | 0 | 0 | |||
NET GAINS (LOSSES) OF FAIR VALUE HEDGING RELATIONSHIPS (INTEREST INCOME/EXPENSE) | $ (5,675) | (5,178) | [3] | 14,514 | [3] | |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Net gains (losses) on derivatives and hedging activities [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivatives1 | [1],[3] | 21,360 | 50,916 | |||
Hedged items2 | [2],[3] | (27,650) | (54,768) | |||
NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS | [3] | $ (6,290) | $ (3,852) | |||
[1] | Includes net interest settlements in interest income/expense. | |||||
[2] | Includes amortization/accretion on closed fair value relationships in interest income. | |||||
[3] | Prior period amounts were not conformed to new hedge accounting guidance adopted January 1, 2019. |
Derivatives And Hedging Activ_6
Derivatives And Hedging Activities Derivatives And Hedging Activities (Cumulative Basis Adjustments for Fair Value Hedges) (Details) $ in Thousands | Dec. 31, 2019USD ($) | |
Advances [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Carrying Value of Hedged Asset, Fair Value Hedge1 | $ 4,951,445 | [1] |
Asset, Basis Adjustments for Active Hedging Relationships2 | 69,643 | [2] |
Hedged Asset, Basis Adjustments for Discontinued Hedging Relationships2 | 1,424 | [2] |
Hedged Asset, Cumulative Amount of Fair Value Hedging Basis Adjustments2 | 71,067 | [2] |
Available-for-sale Securities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Carrying Value of Hedged Asset, Fair Value Hedge1 | 7,155,712 | [1] |
Asset, Basis Adjustments for Active Hedging Relationships2 | 79,141 | [2] |
Hedged Asset, Basis Adjustments for Discontinued Hedging Relationships2 | 0 | [2] |
Hedged Asset, Cumulative Amount of Fair Value Hedging Basis Adjustments2 | 79,141 | [2] |
Consolidated Obligation Bonds [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Carrying Value of Hedged Liability, Fair Value Hedge1 | (3,270,635) | [1] |
Liability, Basis Adjustments for Active Hedging Relationships2 | (26,389) | [2] |
Hedged Liability, Basis Adjustments for Discontinued Hedging Relationships2 | 0 | [2] |
Hedged Liability, Cumulative Amount of Fair Value Hedging Basis Adjustments2 | $ (26,389) | [2] |
[1] | Includes only the portion of carrying value representing the hedged items in fair value hedging relationships. For available-for-sale securities, amortized cost is considered to be carrying value (i.e., the fair value adjustment recorded in accumulated OCI (AOCI) is excluded). | |
[2] | Included in amortized cost of the hedged asset/liability. |
Derivatives And Hedging Activ_7
Derivatives And Hedging Activities (Net Gains Or Losses On Derivatives And Hedging Activities in Non-Interest Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net gains (losses) related to fair value hedge ineffectiveness | $ (6,290) | $ (3,852) | |
Total net gains (losses) related to derivatives not designated as hedging instruments | 3,099 | 2,607 | |
NET GAINS (LOSSES) ON DERIVATIVES AND HEDGING ACTIVITIES | $ (57,623) | (3,191) | (1,245) |
Gain (Loss) on Derivative Instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net gains (losses) related to derivatives not designated as hedging instruments | (57,623) | ||
Gain (Loss) on Derivative Instruments [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
NET GAINS (LOSSES) ON DERIVATIVES AND HEDGING ACTIVITIES | (57,623) | ||
Interest rate swaps [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net gains (losses) related to fair value hedge ineffectiveness | (6,290) | (3,852) | |
Interest rate swaps [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net gains (losses) related to derivatives not designated as hedging instruments | 10,114 | 19,391 | |
Interest rate swaps [Member] | Gain (Loss) on Derivative Instruments [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net gains (losses) related to derivatives not designated as hedging instruments | (56,961) | ||
Interest rate caps/floors [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net gains (losses) related to derivatives not designated as hedging instruments | 33 | (3,848) | |
Interest rate caps/floors [Member] | Gain (Loss) on Derivative Instruments [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net gains (losses) related to derivatives not designated as hedging instruments | (927) | ||
Net Interest Settlements [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net gains (losses) related to derivatives not designated as hedging instruments | (5,476) | (15,143) | |
Net Interest Settlements [Member] | Gain (Loss) on Derivative Instruments [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net gains (losses) related to derivatives not designated as hedging instruments | (3,974) | ||
Mortgage delivery commitments [Member] | Mortgage Receivable [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net gains (losses) related to derivatives not designated as hedging instruments | (1,642) | 2,207 | |
Mortgage delivery commitments [Member] | Gain (Loss) on Derivative Instruments [Member] | Mortgage Receivable [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net gains (losses) related to derivatives not designated as hedging instruments | 4,309 | ||
Consolidated obligation discount note commitments [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net gains (losses) related to derivatives not designated as hedging instruments | $ 70 | $ 0 | |
Consolidated obligation discount note commitments [Member] | Gain (Loss) on Derivative Instruments [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net gains (losses) related to derivatives not designated as hedging instruments | $ (70) |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
Term Deposits | $ 0 | $ 0 |
Deposits (Types Of Deposits) (D
Deposits (Types Of Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Interest-bearing: | ||
Demand | $ 383,197 | $ 265,021 |
Overnight | 280,300 | 158,300 |
Total interest-bearing | 663,497 | 423,321 |
Non-interest-bearing: | ||
Other | 127,143 | 50,499 |
Total non-interest-bearing | 127,143 | 50,499 |
TOTAL DEPOSITS | $ 790,640 | $ 473,820 |
Consolidated Obligations (Narra
Consolidated Obligations (Narrative) (Details) $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | ||
Number of Federal Home Loan Banks | 11 | |
Par value | $ 31,970,700 | $ 23,973,850 |
Obligation with Joint and Several Liability Arrangement, Amount Outstanding | 1,025,894,666 | 1,031,617,463 |
Federal Home Loan Bank, Consolidated Obligations, Callable Option [Member] | ||
Debt Instrument [Line Items] | ||
Par value | $ 8,891,500 | $ 8,559,000 |
Consolidated Obligations (Conso
Consolidated Obligations (Consolidated Bond Obligations Outstanding By Contractual Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Due in one year or less | $ 15,991,800 | $ 8,960,500 |
Due in one year or less, Weighted Average Interest Rate | 1.79% | 2.17% |
Due after one year through two years | $ 6,318,350 | $ 5,625,750 |
Due after one year through two years, Weighted Average Interest Rate | 1.90% | 2.28% |
Due after two years through three years | $ 1,375,000 | $ 2,285,100 |
Due after two years through three years, Weighted Average Interest Rate | 2.11% | 2.11% |
Due after three years through four years | $ 1,285,900 | $ 1,134,750 |
Due after three years through four years, Weighted Average Interest Rate | 2.39% | 2.21% |
Due after four years through five years | $ 1,223,350 | $ 1,087,900 |
Due after four years through five years, Weighted Average Interest Rate | 2.40% | 2.58% |
Thereafter | $ 5,776,300 | $ 4,879,850 |
Thereafter, Weighted Average Interest Rate | 2.78% | 3.01% |
Total par value | $ 31,970,700 | $ 23,973,850 |
Total par value, Weighted Average Interest Rate | 2.05% | 2.38% |
Premium | $ 34,789 | $ 15,591 |
Discounts | (3,357) | (4,088) |
Concession fees | (15,207) | (12,445) |
Hedging adjustments | 26,389 | (6,514) |
TOTAL | $ 32,013,314 | $ 23,966,394 |
Consolidated Obligations (Con_2
Consolidated Obligations (Consolidated Bond Obligations By Contractual Maturity Or Next Call Date) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Due in one year or less | $ 15,991,800 | $ 8,960,500 |
Due after one year through two years | 6,318,350 | 5,625,750 |
Due after two years through three years | 1,375,000 | 2,285,100 |
Due after three years through four years | 1,285,900 | 1,134,750 |
Due after four years through five years | 1,223,350 | 1,087,900 |
Thereafter | 5,776,300 | 4,879,850 |
Total par value | 31,970,700 | 23,973,850 |
Earlier of Contractual Maturity or Next Call Date [Member] | ||
Debt Instrument [Line Items] | ||
Due in one year or less | 24,583,300 | 16,971,500 |
Due after one year through two years | 5,148,350 | 5,270,750 |
Due after two years through three years | 615,000 | 655,100 |
Due after three years through four years | 682,400 | 319,750 |
Due after four years through five years | 356,850 | 275,150 |
Thereafter | $ 584,800 | $ 481,600 |
Consolidated Obligations (Con_3
Consolidated Obligations (Consolidated Bonds By Interest-Rate Payment Type) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total par value | $ 31,970,700 | $ 23,973,850 |
Simple variable rate [Member] | ||
Debt Instrument [Line Items] | ||
Total par value | 16,017,000 | 10,095,000 |
Fixed rate [Member] | ||
Debt Instrument [Line Items] | ||
Total par value | 15,573,700 | 12,858,850 |
Variable rate with cap [Member] | ||
Debt Instrument [Line Items] | ||
Total par value | 220,000 | 20,000 |
Step [Member] | ||
Debt Instrument [Line Items] | ||
Total par value | 110,000 | 470,000 |
Fixed to variable rate [Member] | ||
Debt Instrument [Line Items] | ||
Total par value | 50,000 | 515,000 |
Range [Member] | ||
Debt Instrument [Line Items] | ||
Total par value | $ 0 | $ 15,000 |
Consolidated Obligations (Con_4
Consolidated Obligations (Consolidated Discount Notes Outstanding) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Short-term Debt [Line Items] | |||
Book Value | $ 27,447,911 | $ 20,608,332 | |
Consolidated Obligation Discount Notes [Member] | |||
Short-term Debt [Line Items] | |||
Par Value | $ 27,510,042 | $ 20,649,098 | |
Weighted Average Interest Rate | [1] | 1.54% | 2.35% |
[1] | Represents yield to maturity excluding concession fees. |
Affordable Housing Program (Nar
Affordable Housing Program (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Affordable Housing Program Contribution Requirement Amount | $ 100,000,000 |
Affordable Housing Program, Contribution Requirement, Percentage | 10.00% |
Appropriated and reserved AHP funds as of the end of the period | $ 43,027,000 |
Affordable Housing Program Next Year Uncommitted And Prior Years Recaptured And Reallocated [Member] | |
Appropriated and reserved AHP funds as of the end of the period | 20,814,000 |
Affordable Housing Program Prior Years Committed And Undisbursed [Member] | |
Appropriated and reserved AHP funds as of the end of the period | $ 22,213,000 |
Affordable Housing Program (Ana
Affordable Housing Program (Analysis of AHP Liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Affordable Housing Program [Roll Forward] | ||||
Appropriated and reserved AHP funds as of the beginning of the period | $ 43,081 | $ 43,005 | $ 33,242 | |
AHP set aside based on current year income | 20,597 | 18,944 | 21,934 | |
Direct grants disbursed | (20,973) | (19,027) | (12,752) | |
Recaptured funds | [1] | 322 | 159 | 581 |
Appropriated and reserved AHP funds as of the end of the period | $ 43,027 | $ 43,081 | $ 43,005 | |
[1] | Recaptured funds are direct grants returned to the FHLBank in those instances where the commitments associated with the approved use of funds are not met and repayment to the FHLBank is required by regulation. Recaptured funds are returned as a result of: (1) AHP-assisted homeowner’s transfer or sale of property within the five-year retention period that the assisted homeowner is required to occupy the property; (2) homeowner’s failure to acquire sufficient loan funding (funds previously approved and disbursed cannot be used); (3) over-subsidized projects; or (4) previously disbursed but unused grants. |
Assets and Liabilities Subjec_3
Assets and Liabilities Subject to Offsetting Assets Subject to Offsetting (Schedule of Offsetting Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Offsetting Assets [Line Items] | |||
Derivative assets, Gross Amounts of Recognized Assets | $ 24,810 | $ 88,472 | |
Derivative assets, Gross Amounts Offset in the Statement of Condition | [1],[2] | 129,994 | (52,377) |
Total derivative assets | 154,804 | 36,095 | |
Derivative assets, Gross Amounts Not Offset in the Statement of Condition | [3] | (495) | (1,618) |
Derivative assets, Net Amount | 154,309 | 34,477 | |
Securities purchased under agreements to resell, Gross Amounts of Recognized Assets | 4,750,000 | 1,251,096 | |
Securities purchased under agreements to resell, Gross Amounts Offset in the Statement of Condition | 0 | 0 | |
Securities purchased under agreements to resell, Net Amounts of Assets Presented in the Statement of Condition | 4,750,000 | 1,251,096 | |
Securities purchased under agreements to resell, Gross Amounts Not Offset in the Statement of Condition | [3] | (4,750,000) | (1,251,096) |
Securities purchased under agreements to resell, Net Amount | 0 | 0 | |
TOTAL, Gross Amounts of Recognized Assets | 4,774,810 | 1,339,568 | |
TOTAL, Gross Amounts Offset in the Statement of Condition | 129,994 | (52,377) | |
TOTAL, Net Amounts of Assets Presented in the Statement of Condition | 4,904,804 | 1,287,191 | |
TOTAL, Gross Amounts Not Offset in the Statement of Condition | [3] | (4,750,495) | (1,252,714) |
TOTAL, Net Amount | 154,309 | 34,477 | |
Uncleared derivatives [Member] | |||
Offsetting Assets [Line Items] | |||
Derivative assets, Gross Amounts of Recognized Assets | 21,749 | 88,296 | |
Derivative assets, Gross Amounts Offset in the Statement of Condition | (14,424) | (83,378) | |
Total derivative assets | 7,325 | 4,918 | |
Derivative assets, Gross Amounts Not Offset in the Statement of Condition | [3] | (495) | (1,618) |
Derivative assets, Net Amount | 6,830 | 3,300 | |
Cleared derivatives [Member] | |||
Offsetting Assets [Line Items] | |||
Derivative assets, Gross Amounts of Recognized Assets | 3,061 | 176 | |
Derivative assets, Gross Amounts Offset in the Statement of Condition | 144,418 | 31,001 | |
Total derivative assets | 147,479 | 31,177 | |
Derivative assets, Gross Amounts Not Offset in the Statement of Condition | [3] | 0 | 0 |
Derivative assets, Net Amount | $ 147,479 | $ 31,177 | |
[1] | Amounts represent the application of the netting requirements that allow the FHLBank to settle positive and negative positions, cash collateral, and related accrued interest held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $236,700,000 and $58,902,000 as of December 31, 2019 and 2018, respectively. Cash collateral received was $200,000 and $77,661,000 as of December 31, 2019 and 2018, respectively. | ||
[2] | Represents the effect of legally enforceable master netting agreements that allow the FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty. | ||
[3] | Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments). |
Assets and Liabilities Subjec_4
Assets and Liabilities Subject to Offsetting Liabilities Subject to Offsetting (Schedule of Offsetting Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Offsetting Liabilities [Line Items] | |||
Derivative liabilities, Gross Amounts of Recognized Liabilities | $ 106,708 | $ 41,502 | |
Derivative liabilities, Gross Amounts Offset in the Statement of Condition | [1],[2] | (106,506) | (33,618) |
Total derivative liabilities | 202 | 7,884 | |
Derivative liabilities, Gross Amounts Not Offset in the Statement of Condition | [3] | (25) | (3) |
Derivative liabilities, Net Amount | 177 | 7,881 | |
TOTAL, Gross Amounts of Recognized Liabilities | 106,708 | 41,502 | |
TOTAL, Gross Amounts Offset in the Statement of Condition | (106,506) | (33,618) | |
TOTAL, Net Amounts of Liabilities Presented in the Statement of Condition | 202 | 7,884 | |
TOTAL, Gross Amounts Not Offset in the Statement of Condition | [3] | (25) | (3) |
TOTAL, Net Amount | 177 | 7,881 | |
Uncleared derivatives [Member] | |||
Offsetting Liabilities [Line Items] | |||
Derivative liabilities, Gross Amounts of Recognized Liabilities | 105,468 | 36,363 | |
Derivative liabilities, Gross Amounts Offset in the Statement of Condition | (105,266) | (28,479) | |
Total derivative liabilities | 202 | 7,884 | |
Derivative liabilities, Gross Amounts Not Offset in the Statement of Condition | [3] | (25) | (3) |
Derivative liabilities, Net Amount | 177 | 7,881 | |
Cleared derivatives [Member] | |||
Offsetting Liabilities [Line Items] | |||
Derivative liabilities, Gross Amounts of Recognized Liabilities | 1,240 | 5,139 | |
Derivative liabilities, Gross Amounts Offset in the Statement of Condition | (1,240) | (5,139) | |
Total derivative liabilities | 0 | 0 | |
Derivative liabilities, Gross Amounts Not Offset in the Statement of Condition | [3] | 0 | 0 |
Derivative liabilities, Net Amount | $ 0 | $ 0 | |
[1] | Amounts represent the application of the netting requirements that allow the FHLBank to settle positive and negative positions, cash collateral, and related accrued interest held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $236,700,000 and $58,902,000 as of December 31, 2019 and 2018, respectively. Cash collateral received was $200,000 and $77,661,000 as of December 31, 2019 and 2018, respectively. | ||
[2] | Represents the effect of legally enforceable master netting agreements that allow the FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty. | ||
[3] | Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments). |
Capital (Narrative) (Details)
Capital (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)$ / sharesRate | Dec. 31, 2018$ / sharesRate | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Number of Finance Agency Regulatory Capital Requirements | 3 | ||
Total regulatory capital-to-asset ratio, required | Rate | 4.00% | 4.00% | |
Leverage capital ratio, required | Rate | 5.00% | 5.00% | |
Leverage capital, permanent capital weight | 1.5 | ||
Excess Stock Redemption Or Response Period | 5 days | ||
Dividend Parity Threshold Notification Period | 90 days | ||
Dividend Parity Threshold Adjustment | 100 | ||
Dividend Parity Threshold | 0.00% | ||
Dividend Parity Threshold Floor | 0.00% | ||
Common Stock, par value per share | $ / shares | $ 100 | ||
Excess Stock (less than) | Rate | 1.00% | ||
Class A [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Leverage capital, non-permanent capital weight | 1 | ||
Asset Based Stock Purchase Requirement Percentage | 0.10% | ||
Minimum period after which redemption is required | 6 months | ||
Common Stock, par value per share | $ / shares | [1] | $ 100 | $ 100 |
Financial Instruments Subject To Mandatory Redemption Cancellation Fee Multiplier | 1.00% | ||
Class B [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Minimum period after which redemption is required | 5 years | ||
Common Stock, par value per share | $ / shares | [1] | $ 100 | $ 100 |
Maximum [Member] | Class A [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Asset Based Stock Purchase Requirement Value | $ | $ 500,000 | ||
Maximum [Member] | Class B [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Financial Instruments Subject To Mandatory Redemption Cancellation Fee Multiplier | 5.00% | ||
Minimum [Member] | Class A [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Asset Based Stock Purchase Requirement Value | $ | $ 1,000 | ||
Minimum [Member] | Class B [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Financial Instruments Subject To Mandatory Redemption Cancellation Fee Multiplier | 1.00% | ||
Federal Home Loan Bank Advances [Member] | Class B [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Asset Based Stock Purchase Requirement Percentage | 4.50% | ||
[1] | Putable |
Capital (Regulatory Capital Req
Capital (Regulatory Capital Requirements) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Regulatory capital requirements: | ||
Risk-based capital, Required | $ 486,650 | $ 387,729 |
Risk-based capital, Actual | $ 2,319,531 | $ 2,193,001 |
Total regulatory capital-to-asset ratio, Required | 4.00% | 4.00% |
Total regulatory capital-to-asset ratio, Actual | 4.40% | 5.10% |
Total regulatory capital, Required | $ 2,531,066 | $ 1,908,610 |
Total regulatory capital, Actual | $ 2,768,680 | $ 2,442,156 |
Leverage capital ratio, Required | 5.00% | 5.00% |
Leverage capital ratio, Actual | 6.20% | 7.40% |
Leverage capital, Required | $ 3,163,833 | $ 2,385,763 |
Leverage capital, Actual | $ 3,928,446 | $ 3,538,656 |
Capital (Mandatorily Redeemable
Capital (Mandatorily Redeemable Capital Stock Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Mandatorily Redeemable Capital Stock [Roll Forward] | |||
Balance, beginning of period | $ 3,597 | $ 5,312 | $ 2,670 |
Capital stock subject to mandatory redemption reclassified from equity during the period | 283,831 | 1,040,316 | 779,979 |
Redemption or repurchase of mandatorily redeemable capital stock during the period | (285,150) | (1,042,258) | (777,530) |
Stock dividend classified as mandatorily redeemable capital stock during the period | 137 | 227 | 193 |
Balance, end of period | $ 2,415 | $ 3,597 | $ 5,312 |
Capital (Mandatorily Redeemab_2
Capital (Mandatorily Redeemable Capital Stock By Contractual Year Of Redemption) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Contractual Year of Repurchase | |||||
Year 1 | $ 0 | $ 0 | |||
Year 2 | 1 | 0 | |||
Year 3 | 869 | 1 | |||
Year 4 | 0 | 1,798 | |||
Year 5 | 0 | 0 | |||
Past contractual redemption date due to remaining activity | [1] | 1,545 | 1,798 | ||
TOTAL | $ 2,415 | $ 3,597 | $ 5,312 | $ 2,670 | |
[1] | Represents mandatorily redeemable capital stock that is past the end of the contractual redemption period because there is activity outstanding to which the mandatorily redeemable capital stock relates. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Accumulated Other Comprehensive Income Or Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance at the beginning of the period | $ 2,454,252 | $ 2,506,103 | $ 1,962,448 | |
Reclassifications from other comprehensive income (loss) to net income: | ||||
Total other comprehensive income (loss) | 9,093 | (9,965) | 25,081 | |
Balance at the end of the period | 2,791,051 | 2,454,252 | 2,506,103 | |
Net Unrealized Gain (Loss) on Available-for-Sale Securities [Member] | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance at the beginning of the period | 19,068 | 31,206 | 9,345 | |
Other comprehensive income (loss) before reclassification: | ||||
Unrealized gains (losses) | 7,720 | (12,138) | 21,861 | |
Reclassifications from other comprehensive income (loss) to net income: | ||||
Total other comprehensive income (loss) | 7,720 | (12,138) | 21,861 | |
Balance at the end of the period | 26,788 | 19,068 | 31,206 | |
Defined Benefit Pension Plan [Member] | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance at the beginning of the period | (3,375) | (1,385) | (2,927) | |
Other comprehensive income (loss) before reclassification: | ||||
Net gains (losses) - defined benefit pension plan | (1,806) | (2,389) | 885 | |
Settlement charges or Curtailment gains (losses) - defined benefit pension plan | 2,845 | 279 | ||
Reclassifications from other comprehensive income (loss) to net income: | ||||
Amortization of net losses - defined benefit pension plan2 | [1] | 334 | 399 | 378 |
Total other comprehensive income (loss) | 1,373 | (1,990) | 1,542 | |
Balance at the end of the period | (2,002) | (3,375) | (1,385) | |
Total AOCI [Member] | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance at the beginning of the period | 15,693 | 25,658 | 577 | |
Other comprehensive income (loss) before reclassification: | ||||
Unrealized gains (losses) | 7,720 | (12,138) | 21,861 | |
Non-credit other-than-temporary impairment losses | (61) | |||
Accretion of non-credit other-than-temporary impairment loss | 513 | 1,337 | ||
Non-credit other-than-temporary impairment losses included in basis of securities sold | 3,625 | |||
Net gains (losses) - defined benefit pension plan | (1,806) | (2,389) | 885 | |
Settlement charges or Curtailment gains (losses) - defined benefit pension plan | 2,845 | 279 | ||
Reclassifications from other comprehensive income (loss) to net income: | ||||
Non-credit other-than-temporary impairment to credit other-than-temporary impairment1 | [2] | 25 | 402 | |
Amortization of net losses - defined benefit pension plan2 | [1] | 334 | 399 | 378 |
Total other comprehensive income (loss) | 9,093 | (9,965) | 25,081 | |
Balance at the end of the period | 24,786 | 15,693 | 25,658 | |
Held-to-maturity Securities [Member] | Net Non-credit Portion of OTTI Losses on Held-to-maturity Securities [Member] | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance at the beginning of the period | 0 | (4,163) | (5,841) | |
Other comprehensive income (loss) before reclassification: | ||||
Non-credit other-than-temporary impairment losses | (61) | |||
Accretion of non-credit other-than-temporary impairment loss | 513 | 1,337 | ||
Non-credit other-than-temporary impairment losses included in basis of securities sold | 3,625 | |||
Reclassifications from other comprehensive income (loss) to net income: | ||||
Non-credit other-than-temporary impairment to credit other-than-temporary impairment1 | [2] | 25 | 402 | |
Total other comprehensive income (loss) | 0 | 4,163 | 1,678 | |
Balance at the end of the period | $ 0 | $ 0 | $ (4,163) | |
[1] | Recorded in “Other” non-interest expense on the Statements of Income. Amount represents a debit (increase to other expenses). | |||
[2] | Recorded in “Other” non-interest income on the Statements of Income. Amount represents a debit (decrease to other income (loss)). |
Pension And Other Postretirem_3
Pension And Other Postretirement Benefit Plans (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Multiemployer Plan Number | 333 | ||
Multiemployer Plans, Report Date | Jun. 30, 2018 | ||
Qualified Defined Contribution Plan Pentegra Defined Contribution Plan[Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Cost | $ 1,513 | $ 1,474 | $ 1,343 |
Nonqualified Supplemental Employee Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | ||
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year | 109 | ||
Benefit Equalization Plan Deferred Benefit Component [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | $ 0 |
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 1,198 | ||
Benefit Equalization Plan Deferred Compensation Component [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred compensation component | $ 6,065 | $ 5,129 | |
Pentegra Defined Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Entity Tax Identification Number | 135645888 |
Pension And Other Postretirem_4
Pension And Other Postretirement Benefit Plans (Pentegra DB Plan Net Pension Cost and Funded Status) (Details) - Pentegra Defined Benefit Plan [Member] - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 01, 2019 | Jul. 01, 2018 | Jul. 01, 2017 | ||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Net pension cost charged to compensation and benefits expense | $ 688 | $ 3,528 | $ 3,510 | ||||
Pentegra Defined Benefit Plan funded status as of July 1 | [1] | 108.60% | 111.00% | 111.80% | |||
Fhlbank's funded status as of July 1 | 104.60% | 111.10% | 110.90% | ||||
[1] | The funded status as of July 1, 2019 is preliminary and may increase because the plan’s participants are permitted to make contributions for the plan year ended June 30, 2019 through March 15, 2020. Contributions made on or before March 15, 2020, and designated for the plan year ended June 30, 2019, will be included in the final valuation as of July 1, 2019. The final funded status as of July 1, 2019 will not be available until the Form 5500 for the plan year July 1, 2019 through June 30, 2020 is filed (this Form 5500 is due to be filed no later than April 2021). The funded status as of July 1, 2018 is preliminary and may increase because the plan’s participants were permitted to make contributions for the plan year ended June 30, 2018 through March 15, 2019. Contributions made on or before March 15, 2019, and designated for the plan year ended June 30, 2018, will be included in the final valuation as of July 1, 2018. The final funded status as of July 1, 2018 will not be available until the Form 5500 for the plan year July 1, 2018 through June 30, 2019 is filed (this Form 5500 is due to be filed no later than April 2020). |
Pension And Other Postretirem_5
Pension And Other Postretirement Benefit Plans (Benefit Obligation Fair Value And Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Nonqualified Supplemental Employee Retirement Plan [Member] | |||
Change in plan assets: | |||
Fair value of plan assets at end of the year | $ 0 | ||
Benefit Equalization Plan Deferred Benefit Component [Member] | |||
Change in benefit obligation: | |||
Projected benefit obligation at beginning of year | 14,519 | $ 12,313 | |
Service cost | 236 | 222 | $ 331 |
Interest cost | 566 | 506 | 558 |
Net (gains) losses | 1,806 | 2,389 | |
Benefits paid | (910) | (911) | |
Curtailment | (2,845) | 0 | |
Projected benefit obligation at end of year | 13,372 | 14,519 | 12,313 |
Change in plan assets: | |||
Fair value of plan assets at beginning of the year | 0 | 0 | |
Employer contributions | 910 | 911 | |
Benefits paid | (910) | (911) | |
Fair value of plan assets at end of the year | 0 | 0 | $ 0 |
FUNDED STATUS | $ (13,372) | $ (14,519) |
Pension And Other Postretirem_6
Pension And Other Postretirement Benefit Plans (Components Of The Net Periodic Pension Cost For The Defined Benefit Portion) (Details) - Benefit Equalization Plan Deferred Benefit Component [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | $ 236 | $ 222 | $ 331 |
Interest cost | 566 | 506 | 558 |
Amortization of net losses | 334 | 399 | 378 |
Settlement charges | 0 | 0 | 279 |
NET PERIODIC POSTRETIREMENT BENEFIT COST | $ 1,136 | $ 1,127 | $ 1,546 |
Pension And Other Postretirem_7
Pension And Other Postretirement Benefit Plans (Benefit Obligation Key Assumptions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Salary increases - benefit obligation | 0.00% | 4.89% | 4.90% |
Benefit Equalization Plan Deferred Benefit Component [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - benefit obligation | 3.00% | 4.00% | 3.50% |
Discount rate - net periodic benefit cost | 4.00% | 3.50% | 4.00% |
Amortization period (years) - net periodic benefit cost | 6 years | 6 years | 6 years |
Accumulated benefit obligation | $ 13,372 | $ 11,105 | $ 9,473 |
Pension And Other Postretirem_8
Pension And Other Postretirement Benefit Plans (Estimate Future Payments) (Details) - Nonqualified Supplemental Employee Retirement Plan [Member] $ in Thousands | Dec. 31, 2019USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 1,198 |
2021 | 1,211 |
2022 | 1,206 |
2023 | 1,223 |
2024 | 403 |
2025 through 2029 | $ 2,312 |
Fair Values (Fair Value Summary
Fair Values (Fair Value Summary) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets: | |||
Cash and due from banks | $ 1,917,166 | $ 15,060 | |
Trading securities | 2,812,562 | 2,151,113 | |
Available-for-sale securities | 7,182,500 | 1,725,640 | |
Held-to-maturity securities, Carrying Value | [1] | 3,569,958 | 4,456,873 |
Held-to-maturity securities | 3,556,938 | 4,447,078 | |
Accrued interest receivable | 143,765 | 109,366 | |
Derivative assets | 154,804 | 36,095 | |
Netting adjustments and cash collateral, Derivative Assets | [2],[3] | 129,994 | (52,377) |
Liabilities: | |||
Accrued interest payable | 117,580 | 87,903 | |
Derivative liabilities | 202 | 7,884 | |
Netting adjustments and cash collateral, Derivative Liabilities | [2],[3] | (106,506) | (33,618) |
Carrying Value [Member] | |||
Assets: | |||
Cash and due from banks | 1,917,166 | 15,060 | |
Interest-bearing deposits | 921,453 | 670,660 | |
Securities purchased under agreements to resell | 4,750,000 | 1,251,096 | |
Federal funds sold | 850,000 | 50,000 | |
Trading securities | 2,812,562 | 2,151,113 | |
Available-for-sale securities | 7,182,500 | 1,725,640 | |
Held-to-maturity securities, Carrying Value | 3,569,958 | 4,456,873 | |
Advances | 30,241,315 | 28,730,113 | |
Mortgage loans held for portfolio, net of allowance | 10,633,009 | 8,410,462 | |
Accrued interest receivable | 143,765 | 109,366 | |
Derivative assets | 154,804 | 36,095 | |
Liabilities: | |||
Deposits | 790,640 | 473,820 | |
Mandatorily redeemable capital stock | 2,415 | 3,597 | |
Accrued interest payable | 117,580 | 87,903 | |
Derivative liabilities | 202 | 7,884 | |
Carrying Value [Member] | Industrial revenue bond [Member] | |||
Other Asset (Liability): | |||
Other asset (liability), asset | 35,000 | 35,000 | |
Carrying Value [Member] | Financing lease payable [Member] | |||
Other Asset (Liability): | |||
Other asset (liability), liability | (35,000) | (35,000) | |
Carrying Value [Member] | Consolidated Obligation Discount Notes [Member] | |||
Liabilities: | |||
Consolidated obligation discount notes | 27,447,911 | 20,608,332 | |
Carrying Value [Member] | Consolidated Obligation Bonds [Member] | |||
Liabilities: | |||
Consolidated obligation bonds | 32,013,314 | 23,966,394 | |
Fair Value [Member] | |||
Assets: | |||
Cash and due from banks | 1,917,166 | 15,060 | |
Interest-bearing deposits | 921,453 | 670,660 | |
Securities purchased under agreements to resell | 4,750,000 | 1,251,096 | |
Federal funds sold | 850,000 | 50,000 | |
Trading securities | 2,812,562 | 2,151,113 | |
Available-for-sale securities | 7,182,500 | 1,725,640 | |
Held-to-maturity securities | 3,556,938 | 4,447,078 | |
Advances | 30,295,813 | 28,728,201 | |
Mortgage loans held for portfolio, net of allowance | 10,983,356 | 8,388,885 | |
Accrued interest receivable | 143,765 | 109,366 | |
Derivative assets | 154,804 | 36,095 | |
Liabilities: | |||
Deposits | 790,640 | 473,820 | |
Mandatorily redeemable capital stock | 2,415 | 3,597 | |
Accrued interest payable | 117,580 | 87,903 | |
Derivative liabilities | 202 | 7,884 | |
Fair Value [Member] | Industrial revenue bond [Member] | |||
Other Asset (Liability): | |||
Other asset (liability), asset | 34,850 | 32,154 | |
Fair Value [Member] | Financing lease payable [Member] | |||
Other Asset (Liability): | |||
Other asset (liability), liability | (34,850) | (32,154) | |
Fair Value [Member] | Consolidated Obligation Discount Notes [Member] | |||
Liabilities: | |||
Consolidated obligation discount notes | 27,448,021 | 20,606,743 | |
Fair Value [Member] | Consolidated Obligation Bonds [Member] | |||
Liabilities: | |||
Consolidated obligation bonds | 32,103,154 | 23,727,705 | |
Level 1 [Member] | |||
Assets: | |||
Cash and due from banks | 1,917,166 | 15,060 | |
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 | 0 | 0 | |
Advances | 0 | 0 | |
Mortgage loans held for portfolio, net of allowance | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Derivative assets | 0 | 0 | |
Liabilities: | |||
Deposits | 0 | 0 | |
Mandatorily redeemable capital stock | 2,415 | 3,597 | |
Accrued interest payable | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Level 1 [Member] | Industrial revenue bond [Member] | |||
Other Asset (Liability): | |||
Other asset (liability), asset | 0 | 0 | |
Level 1 [Member] | Financing lease payable [Member] | |||
Other Asset (Liability): | |||
Other asset (liability), liability | 0 | 0 | |
Level 1 [Member] | Consolidated Obligation Discount Notes [Member] | |||
Liabilities: | |||
Consolidated obligation discount notes | 0 | 0 | |
Level 1 [Member] | Consolidated Obligation Bonds [Member] | |||
Liabilities: | |||
Consolidated obligation bonds | 0 | 0 | |
Level 2 [Member] | |||
Assets: | |||
Cash and due from banks | 0 | 0 | |
Interest-bearing deposits | 921,453 | 670,660 | |
Securities purchased under agreements to resell | 4,750,000 | 1,251,096 | |
Federal funds sold | 850,000 | 50,000 | |
Trading securities | 2,812,562 | 2,151,113 | |
Available-for-sale securities | 7,182,500 | 1,725,640 | |
Held-to-maturity securities | 3,476,084 | 4,364,127 | |
Advances | 30,295,813 | 28,728,201 | |
Mortgage loans held for portfolio, net of allowance | 10,981,458 | 8,387,425 | |
Accrued interest receivable | 143,765 | 109,366 | |
Derivative assets | 24,810 | 88,472 | |
Liabilities: | |||
Deposits | 790,640 | 473,820 | |
Mandatorily redeemable capital stock | 0 | 0 | |
Accrued interest payable | 117,580 | 87,903 | |
Derivative liabilities | 106,708 | 41,502 | |
Level 2 [Member] | Industrial revenue bond [Member] | |||
Other Asset (Liability): | |||
Other asset (liability), asset | 34,850 | 32,154 | |
Level 2 [Member] | Financing lease payable [Member] | |||
Other Asset (Liability): | |||
Other asset (liability), liability | (34,850) | (32,154) | |
Level 2 [Member] | Consolidated Obligation Discount Notes [Member] | |||
Liabilities: | |||
Consolidated obligation discount notes | 27,448,021 | 20,606,743 | |
Level 2 [Member] | Consolidated Obligation Bonds [Member] | |||
Liabilities: | |||
Consolidated obligation bonds | 32,103,154 | 23,727,705 | |
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 | 80,854 | 82,951 | |
Advances | 0 | 0 | |
Mortgage loans held for portfolio, net of allowance | 1,898 | 1,460 | |
Accrued interest receivable | 0 | 0 | |
Derivative assets | 0 | 0 | |
Liabilities: | |||
Deposits | 0 | 0 | |
Mandatorily redeemable capital stock | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Level 3 [Member] | Industrial revenue bond [Member] | |||
Other Asset (Liability): | |||
Other asset (liability), asset | 0 | 0 | |
Level 3 [Member] | Financing lease payable [Member] | |||
Other Asset (Liability): | |||
Other asset (liability), liability | 0 | 0 | |
Level 3 [Member] | Consolidated Obligation Discount Notes [Member] | |||
Liabilities: | |||
Consolidated obligation discount notes | 0 | 0 | |
Level 3 [Member] | Consolidated Obligation Bonds [Member] | |||
Liabilities: | |||
Consolidated obligation bonds | $ 0 | $ 0 | |
[1] | Fair value: $3,556,938 and $4,447,078 as of December 31, 2019 and December 31, 2018, respectively. | ||
[2] | Amounts represent the application of the netting requirements that allow the FHLBank to settle positive and negative positions, cash collateral, and related accrued interest held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $236,700,000 and $58,902,000 as of December 31, 2019 and 2018, respectively. Cash collateral received was $200,000 and $77,661,000 as of December 31, 2019 and 2018, respectively. | ||
[3] | Represents the effect of legally enforceable master netting agreements that allow the FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty. |
Fair Values (Hierarchy Level fo
Fair Values (Hierarchy Level for Financial Assets And Liabilities - Recurring And Nonrecurring) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | $ 2,812,562 | $ 2,151,113 | |||
Available-for-sale securities | 7,182,500 | 1,725,640 | |||
Total derivative assets | 154,804 | 36,095 | |||
Netting adjustments and cash collateral, Derivative Assets | [1],[2] | 129,994 | (52,377) | ||
Total derivative liabilities | 202 | 7,884 | |||
Netting adjustments and cash collateral, Derivative Liabilities | [1],[2] | (106,506) | (33,618) | ||
Held-to-maturity securities | 3,556,938 | 4,447,078 | |||
U.S. Treasury obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 1,530,518 | 252,377 | |||
Available-for-sale securities | 4,261,791 | ||||
US Government-sponsored Enterprises Debt Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 416,025 | 1,000,495 | |||
U.S. obligation MBS [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 0 | 467 | |||
Held-to-maturity securities | 92,879 | 109,892 | |||
GSE MBS [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 866,019 | 897,774 | |||
Available-for-sale securities | 2,920,709 | 1,725,640 | |||
Held-to-maturity securities | 3,383,205 | 4,254,235 | |||
Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 2,812,562 | 2,151,113 | |||
Available-for-sale securities | 7,182,500 | 1,725,640 | |||
Total derivative assets | 24,810 | 88,472 | |||
Total derivative liabilities | 106,708 | 41,502 | |||
Held-to-maturity securities | 3,476,084 | 4,364,127 | |||
Mortgage loans held for portfolio | 10,981,458 | 8,387,425 | |||
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 | |||
Total derivative assets | 0 | 0 | |||
Total derivative liabilities | 0 | 0 | |||
Held-to-maturity securities | 80,854 | 82,951 | |||
Mortgage loans held for portfolio | 1,898 | 1,460 | |||
Fair Value [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 2,812,562 | 2,151,113 | |||
Available-for-sale securities | 7,182,500 | 1,725,640 | |||
Total derivative assets | 154,804 | 36,095 | |||
Total derivative liabilities | 202 | 7,884 | |||
Held-to-maturity securities | 3,556,938 | 4,447,078 | |||
Mortgage loans held for portfolio | 10,983,356 | 8,388,885 | |||
Recurring fair value measurements [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Netting adjustments and cash collateral, Derivative Assets | [2] | 129,994 | (52,377) | ||
Netting adjustments and cash collateral, Derivative Liabilities | [2] | (106,506) | (33,618) | ||
Recurring fair value measurements [Member] | Interest-rate related [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Netting adjustments and cash collateral, Derivative Assets | [2] | 129,994 | (52,377) | ||
Netting adjustments and cash collateral, Derivative Liabilities | [2] | (106,506) | (33,618) | ||
Recurring fair value measurements [Member] | Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 2,812,562 | 2,151,113 | |||
Available-for-sale securities | 7,182,500 | 1,725,640 | |||
Total derivative assets | 24,810 | 88,472 | |||
TOTAL FAIR VALUE MEASUREMENTS - ASSETS | 10,019,872 | 3,965,225 | |||
Total derivative liabilities | 106,708 | 41,502 | |||
TOTAL FAIR VALUE MEASUREMENTS - LIABILITIES | 106,708 | 41,502 | |||
Recurring fair value measurements [Member] | Level 2 [Member] | Interest-rate related [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total derivative assets | 24,315 | 87,920 | |||
Total derivative liabilities | 106,683 | 41,499 | |||
Recurring fair value measurements [Member] | Level 2 [Member] | U.S. Treasury obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 1,530,518 | 252,377 | |||
Available-for-sale securities | 4,261,791 | ||||
Recurring fair value measurements [Member] | Level 2 [Member] | US Government-sponsored Enterprises Debt Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 416,025 | 1,000,495 | |||
Recurring fair value measurements [Member] | Level 2 [Member] | U.S. obligation MBS [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 467 | ||||
Recurring fair value measurements [Member] | Level 2 [Member] | GSE MBS [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 866,019 | 897,774 | |||
Available-for-sale securities | 2,920,709 | 1,725,640 | |||
Recurring fair value measurements [Member] | Level 2 [Member] | Mortgage Receivable [Member] | Mortgage delivery commitments [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total derivative assets | 495 | 552 | |||
Total derivative liabilities | 25 | 3 | |||
Recurring fair value measurements [Member] | Fair Value [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 2,812,562 | 2,151,113 | |||
Available-for-sale securities | 7,182,500 | 1,725,640 | |||
Total derivative assets | 154,804 | 36,095 | |||
TOTAL FAIR VALUE MEASUREMENTS - ASSETS | 10,149,866 | 3,912,848 | |||
Total derivative liabilities | 202 | 7,884 | |||
TOTAL FAIR VALUE MEASUREMENTS - LIABILITIES | 202 | 7,884 | |||
Recurring fair value measurements [Member] | Fair Value [Member] | Interest-rate related [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total derivative assets | 154,309 | 35,543 | |||
Total derivative liabilities | 177 | 7,881 | |||
Recurring fair value measurements [Member] | Fair Value [Member] | U.S. Treasury obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 1,530,518 | 252,377 | |||
Available-for-sale securities | 4,261,791 | ||||
Recurring fair value measurements [Member] | Fair Value [Member] | US Government-sponsored Enterprises Debt Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 416,025 | 1,000,495 | |||
Recurring fair value measurements [Member] | Fair Value [Member] | U.S. obligation MBS [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 467 | ||||
Recurring fair value measurements [Member] | Fair Value [Member] | GSE MBS [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 866,019 | 897,774 | |||
Available-for-sale securities | 2,920,709 | 1,725,640 | |||
Recurring fair value measurements [Member] | Fair Value [Member] | Mortgage Receivable [Member] | Mortgage delivery commitments [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total derivative assets | 495 | 552 | |||
Total derivative liabilities | 25 | 3 | |||
Nonrecurring fair value measurements - Assets: [Member] | Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
TOTAL FAIR VALUE MEASUREMENTS - ASSETS | 2,053 | [3] | 2,491 | [4] | |
Mortgage loans held for portfolio | 1,909 | [3] | 1,463 | [4] | |
Real estate owned | 144 | [3] | 1,028 | [4] | |
Nonrecurring fair value measurements - Assets: [Member] | Fair Value [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
TOTAL FAIR VALUE MEASUREMENTS - ASSETS | 2,053 | [3] | 2,491 | [4] | |
Mortgage loans held for portfolio | 1,909 | [3] | 1,463 | [4] | |
Real estate owned | $ 144 | [3] | $ 1,028 | [4] | |
[1] | Amounts represent the application of the netting requirements that allow the FHLBank to settle positive and negative positions, cash collateral, and related accrued interest held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $236,700,000 and $58,902,000 as of December 31, 2019 and 2018, respectively. Cash collateral received was $200,000 and $77,661,000 as of December 31, 2019 and 2018, respectively. | ||||
[2] | Represents the effect of legally enforceable master netting agreements that allow the FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty. | ||||
[3] | Includes assets adjusted to fair value during the year ended December 31, 2019 and still outstanding as of December 31, 2019. | ||||
[4] | Includes assets adjusted to fair value during the year ended December 31, 2018 and still outstanding as of December 31, 2018. |
Commitments And Contingencies_2
Commitments And Contingencies (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)Rate | Dec. 31, 2018USD ($) | |
Off-balance Sheet Commitments: | ||
Obligation with Joint and Several Liability Arrangement, Description | As provided in the Bank Act or in FHFA regulations, consolidated obligations are backed only by the financial resources of the FHLBanks. FHLBank Topeka is jointly and severally liable with the other FHLBanks for the payment of principal and interest on all of the consolidated obligations issued by the FHLBanks. | |
Obligation with joint and several liability arrangement, off balance sheet amount | $ 966,413,924,000 | $ 986,994,515,000 |
Carrying value included in other liabilities | $ 70,514,000 | $ 69,993,000 |
Number of in-district state housing authorities with standby bond purchase agreements | 2 | 2 |
Mortgage Delivery Commitments Derivative Asset (Liability) | $ 470,000 | $ 549,000 |
Other Commitments Other Assets: | ||
Other assets | 100,122,000 | 108,778,000 |
Other Commitments Other Liabilities: | ||
Customer Securities Held By Subcustodian | 53,657,170,000 | |
Standby Letters of Credit Outstanding [Member] | ||
Off-balance Sheet Commitments: | ||
Carrying value included in other liabilities | $ 1,470,000 | 1,296,000 |
Commitment Expiration Year (no later than) | 2024 | |
Term (up to) | P6Y | |
Forward Settling Advance Commitments [Member] | ||
Off-balance Sheet Commitments: | ||
Term (up to) | P24M | |
Commitments for standby bond purchases [Member] | ||
Off-balance Sheet Commitments: | ||
Commitment Expiration Year (no later than) | 2022 | |
Mortgage Receivable [Member] | Commitments to fund or purchase mortgage loans [Member] | ||
Off-balance Sheet Commitments: | ||
Term (up to) | P60D | |
Shawnee County Financing Lease Agreement [Member] | ||
Other Commitments Other Liabilities: | ||
Debt Instrument, Issuance Date | Jun. 28, 2017 | |
Debt Instrument, Issuer | Shawnee County, Kansas | |
Debt Instrument, Face Amount | $ 36,000,000 | |
Debt Instrument, Maturity Date | Dec. 31, 2027 | |
Debt Instrument, Term | 127 months | |
Debt Instrument, Interest Rate, Stated Percentage | Rate | 2.00% | |
Debt Instrument, Frequency of Periodic Payment | annual | |
Debt Instrument, Date of First Required Payment | Dec. 1, 2018 | |
Shawnee County Industrial Revenue Bond [Member] | ||
Other Commitments Other Assets: | ||
Industrial Revenue Bonds Instrument, Issuance Date | Jun. 28, 2017 | |
Industrial Revenue Bonds Instrument, Issuer | Shawnee County, Kansas | |
Property Tax Abatement Term | 10 years | |
Industrial Revenue Bonds Instrument, Face Amount | $ 36,000,000 | |
Industrial Revenue Bonds Instrument, Maturity Date | Dec. 31, 2027 | |
Industrial Revenue Bonds Instrument, Term | 127 months | |
Industrial Revenue Bonds Instrument, Interest Rate, Stated Percentage | Rate | 2.00% | |
Industrial Revenue Bonds Instrument, Frequency of Periodic Payment | annual | |
Industrial Revenue Bonds Instrument, Receipt Date of First Required Payment | Dec. 1, 2018 | |
Other Assets [Member] | Shawnee County Industrial Revenue Bond [Member] | ||
Other Commitments Other Assets: | ||
Other assets | $ 35,000,000 | 35,000,000 |
Other Liabilities [Member] | Shawnee County Financing Lease Agreement [Member] | ||
Other Commitments Other Liabilities: | ||
Other Borrowings | $ 35,000,000 | $ 35,000,000 |
Commitments And Contingencies_3
Commitments And Contingencies (Off-Balance Sheet Commitments) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Standby letters of credit outstanding [Member] | ||
Loss Contingencies [Line Items] | ||
Expire Within One Year | $ 4,764,724 | $ 3,824,497 |
Expire After One Year | 4,335 | 37,933 |
Total | 4,769,059 | 3,862,430 |
Advance commitments outstanding [Member] | ||
Loss Contingencies [Line Items] | ||
Expire Within One Year | 64,282 | 116,475 |
Expire After One Year | 15,693 | 43,782 |
Total | 79,975 | 160,257 |
Commitments for standby bond purchases [Member] | ||
Loss Contingencies [Line Items] | ||
Expire Within One Year | 0 | 69,277 |
Expire After One Year | 701,392 | 686,602 |
Total | 701,392 | 755,879 |
Commitments to issue consolidated obligations discount notes, at par [Member] | ||
Loss Contingencies [Line Items] | ||
Expire Within One Year | 411,161 | 1,825,000 |
Expire After One Year | 0 | 0 |
Total | 411,161 | 1,825,000 |
Mortgage Receivable [Member] | Commitments to fund or purchase mortgage loans [Member] | ||
Loss Contingencies [Line Items] | ||
Expire Within One Year | 221,800 | 101,551 |
Expire After One Year | 0 | 0 |
Total | $ 221,800 | $ 101,551 |
Transactions With Stockholder_2
Transactions With Stockholders (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
BOKF, N.A. [Member] | |
Related Party Transaction [Line Items] | |
Mortgage loans acquired | $ 6,748,000 |
Transactions With Stockholder_3
Transactions With Stockholders (Related Party Transactions, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||
Outstanding Advances | $ 30,241,315 | $ 28,730,113 |
Outstanding Deposits | 790,640 | 473,820 |
Ten Percent Owner [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 772,607 | $ 593,206 |
Regulatory Capital Stock, Percent Of Total | 43.60% | 38.80% |
Outstanding Advances | $ 13,085,000 | $ 12,660,000 |
Outstanding Advances, Percent of Total | 43.40% | 44.00% |
Outstanding Deposits | $ 23,487 | $ 29,619 |
Outstanding Deposits, Percent of Total | 3.00% | 6.30% |
Ten Percent Owner [Member] | Total Class A Stock [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 184,782 | $ 24,506 |
Regulatory Capital Stock, Percent Of Total | 41.10% | 9.80% |
Ten Percent Owner [Member] | Total Class B Stock [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 587,825 | $ 568,700 |
Regulatory Capital Stock, Percent Of Total | 44.50% | 44.40% |
MidFirst Bank [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 386,325 | $ 295,200 |
Regulatory Capital Stock, Percent Of Total | 21.80% | 19.30% |
Outstanding Advances | $ 8,585,000 | $ 6,560,000 |
Outstanding Advances, Percent of Total | 28.50% | 22.80% |
Outstanding Deposits | $ 1,030 | $ 331 |
Outstanding Deposits, Percent of Total | 0.10% | 0.10% |
MidFirst Bank [Member] | Total Class A Stock [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 500 | $ 500 |
Regulatory Capital Stock, Percent Of Total | 0.10% | 0.20% |
MidFirst Bank [Member] | Total Class B Stock [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 385,825 | $ 294,700 |
Regulatory Capital Stock, Percent Of Total | 29.20% | 23.00% |
BOKF, N.A. [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 386,282 | $ 298,006 |
Regulatory Capital Stock, Percent Of Total | 21.80% | 19.50% |
Outstanding Advances | $ 4,500,000 | $ 6,100,000 |
Outstanding Advances, Percent of Total | 14.90% | 21.20% |
Outstanding Deposits | $ 22,457 | $ 29,288 |
Outstanding Deposits, Percent of Total | 2.90% | 6.20% |
BOKF, N.A. [Member] | Total Class A Stock [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 184,282 | $ 24,006 |
Regulatory Capital Stock, Percent Of Total | 41.00% | 9.60% |
BOKF, N.A. [Member] | Total Class B Stock [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 202,000 | $ 274,000 |
Regulatory Capital Stock, Percent Of Total | 15.30% | 21.40% |
Transactions With Stockholder_4
Transactions With Stockholders (Related Party Transactions, by Balance Sheet Grouping-Directors) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||
Advances, Outstanding Amount | $ 30,241,315 | $ 28,730,113 |
Deposits, Outstanding Amount | $ 790,640 | $ 473,820 |
Director [Member] | ||
Related Party Transaction [Line Items] | ||
TOTAL CAPITAL STOCK, Percent Of Total | 0.70% | 0.60% |
TOTAL CAPITAL STOCK, Outstanding Amount | $ 12,038 | $ 9,103 |
Advances, Outstanding Amount | $ 178,945 | $ 157,012 |
Advances, Percent of Total | 0.60% | 0.50% |
Deposits, Outstanding Amount | $ 15,748 | $ 9,679 |
Deposits, Percent of Total | 2.00% | 2.10% |
Director [Member] | Class A [Member] | ||
Related Party Transaction [Line Items] | ||
TOTAL CAPITAL STOCK, Percent Of Total | 1.40% | 1.70% |
TOTAL CAPITAL STOCK, Outstanding Amount | $ 6,467 | $ 4,179 |
Director [Member] | Class B [Member] | ||
Related Party Transaction [Line Items] | ||
TOTAL CAPITAL STOCK, Percent Of Total | 0.40% | 0.40% |
TOTAL CAPITAL STOCK, Outstanding Amount | $ 5,571 | $ 4,924 |
Transactions With Stockholder_5
Transactions With Stockholders (Schedule Of Related Party Transactions, Mortgage Loans Disclosure) (Details) - Director [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Mortgage loans acquired | $ 189,724 | $ 104,360 |
Mortgage loans acquired, Percent of Total | 4.90% | 5.10% |
Transactions With Other FHLBa_3
Transactions With Other FHLBanks (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Federal Home Loan Banks [Abstract] | ||||
Average overnight interbank loan balances to other FHLBanks | [1] | $ 2,529 | $ 1,466 | $ 4,534 |
Average overnight interbank loan balances from other FHLBanks | [1] | 8,082 | 3,562 | 1,247 |
Average deposit balances with FHLBank of Chicago for interbank transactions | [2] | 1,361 | 1,256 | 1,429 |
Transaction charges paid to FHLBank of Chicago for transaction service fees | [3] | 6,938 | 5,687 | 4,854 |
Par amount of purchases of consolidated obligations issued on behalf of other FHLBanks | [4] | 0 | 0 | 0 |
Outstanding fair value of Investment in consolidated obligations of other FHLBanks | 111,173 | 108,242 | ||
Interest income on investments in consolidated obligations of other FHLBanks | $ 3,429 | $ 3,429 | $ 5,817 | |
[1] | Occasionally, the FHLBank loans (or borrows) short-term funds to (from) other FHLBanks. Interest income on loans to other FHLBanks is included in Other Interest Income and interest expense on borrowings from other FHLBanks is included in Other Interest Expense on the Statements of Income. | |||
[2] | Balances are interest bearing and are classified on the Statements of Condition as interest-bearing deposits. | |||
[3] | Fees are calculated monthly based on outstanding loans at the per annum rate in effect at origination. | |||
[4] | Purchases of consolidated obligations issued on behalf of one FHLBank and purchased by the FHLBank occur at market prices with third parties and are accounted for in the same manner as similarly classified investments. Outstanding fair value balances totaling $111,173,000 and $108,242,000 as of December 31, 2019 and 2018, respectively, are included in the non-MBS GSE obligations totals presented in Note 4. Interest income earned on these securities totaled $3,429,000, $3,429,000, and $5,817,000 for the years ended December 31, 2019, 2018, and 2017, respectively. |