Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 28, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Federal Home Loan Bank of Atlanta | ||
Entity Central Index Key | 1,331,465 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 51,578,606 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filing Status | No | ||
Entity Well Known Seasoned Issued | No | ||
Entity Public Float | $ 0 | ||
Common Stock, Value, Outstanding | $ 5,249,367,100 |
Statements of Condition
Statements of Condition - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 1,815 | $ 1,751 |
Interest-bearing deposits (including deposits with another FHLBank of $5 and $3 as of December 31, 2016 and 2015, respectively) | 1,106 | 1,088 |
Securities purchased under agreements to resell | 1,386 | 2,500 |
Federal funds sold | 7,770 | 5,421 |
Investment securities: | ||
Trading securities (includes another FHLBank’s bond of $0 and $52 as of December 31, 2016 and 2015, respectively) | 262 | 1,265 |
Available-for-sale securities | 1,345 | 1,662 |
Held-to-maturity securities (fair value of $24,633 and $23,263 as of December 31, 2016 and 2015, respectively) | 24,641 | 23,239 |
Total investment securities | 26,248 | 26,166 |
Advances | 99,077 | 104,168 |
Mortgage loans held for portfolio, net | ||
Mortgage loans held for portfolio | 524 | 586 |
Allowance for credit losses on mortgage loans | (1) | (2) |
Total mortgage loans held for portfolio, net | 523 | 584 |
Accrued interest receivable | 171 | 171 |
Derivative assets | 355 | 176 |
Premises and equipment, net | 24 | 25 |
Other assets | 196 | 196 |
Total assets | 138,671 | 142,246 |
Liabilities | ||
Interest-bearing deposits | 1,118 | 1,084 |
Consolidated obligations, net: | ||
Discount notes | 41,292 | 69,434 |
Bonds | 88,647 | 63,953 |
Total consolidated obligations, net | 129,939 | 133,387 |
Mandatorily redeemable capital stock | 1 | 14 |
Accrued interest payable | 128 | 127 |
Affordable Housing Program payable | 69 | 63 |
Derivative liabilities | 107 | 124 |
Other liabilities | 358 | 431 |
Total liabilities | 131,720 | 135,230 |
Commitments and contingencies (Note 20) | ||
Capital | ||
Total capital stock Class B putable | 4,955 | 5,101 |
Retained earnings: | ||
Restricted | 310 | 255 |
Unrestricted | 1,582 | 1,585 |
Total retained earnings | 1,892 | 1,840 |
Accumulated other comprehensive income | 104 | 75 |
Total capital | 6,951 | 7,016 |
Total liabilities and capital | 138,671 | 142,246 |
Subclass B1 [Member] | ||
Capital | ||
Total capital stock Class B putable | 787 | 745 |
Subclass B2 [Member] | ||
Capital | ||
Total capital stock Class B putable | $ 4,168 | $ 4,356 |
Statements of Condition (Parent
Statements of Condition (Parenthetical) - USD ($) shares in Millions, $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deposits with other FHLBanks | $ 5 | $ 3 |
Other FHLBank's bonds | 0 | 52 |
Held-to-maturity securities, fair value | $ 24,633 | $ 23,263 |
Capital stock Class B putable par value (per share) | $ 100 | $ 100 |
Subclass B1 [Member] | ||
Capital stock, shares issued | 8 | 7 |
Capital stock, shares outstanding | 8 | 7 |
Subclass B2 [Member] | ||
Capital stock, shares issued | 42 | 44 |
Capital stock, shares outstanding | 42 | 44 |
Statements of Income
Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest income | |||
Advances | $ 583 | $ 137 | $ 178 |
Prepayment fees, net | 3 | 4 | 2 |
Interest-bearing deposits | 17 | 5 | 4 |
Securities purchased under agreements to resell | 4 | 3 | 1 |
Federal funds sold | 36 | 11 | 8 |
Trading securities | 38 | 68 | 75 |
Available-for-sale securities | 105 | 109 | 122 |
Held-to-maturity securities | 289 | 231 | 238 |
Mortgage loans | 31 | 40 | 50 |
Total interest income | 1,106 | 608 | 678 |
Interest expense | |||
Consolidated obligation discount notes | 249 | 59 | 29 |
Consolidated obligation bonds | 519 | 305 | 325 |
Interest-bearing deposits | 4 | 0 | 0 |
Mandatorily redeemable capital stock | 0 | 1 | 1 |
Total interest expense | 772 | 365 | 355 |
Net interest income | 334 | 243 | 323 |
Reversal of provision for credit losses | (1) | (1) | (5) |
Net interest income after reversal of provision for credit losses | 335 | 244 | 328 |
Noninterest income (loss) | |||
Total other-than-temporary impairment losses | (2) | 0 | 0 |
Net amount of impairment losses reclassified from accumulated other comprehensive income | (1) | (5) | (3) |
Net impairment losses recognized in earnings | (3) | (5) | (3) |
Net losses on trading securities | (30) | (61) | (60) |
Net gains on derivatives and hedging activities | 119 | 261 | 120 |
Gain on extinguishment of debt | 0 | 0 | 15 |
Standby letters of credit fees | 28 | 28 | 26 |
(Loss) gain on litigation settlements, net | (6) | 0 | 4 |
Other | 3 | 2 | 3 |
Total noninterest income | 111 | 225 | 105 |
Noninterest expense | |||
Compensation and benefits | 79 | 76 | 73 |
Other operating expenses | 37 | 39 | 41 |
Finance Agency | 9 | 9 | 9 |
Office of Finance | 6 | 6 | 5 |
Other | 6 | 5 | 4 |
Total noninterest expense | 137 | 135 | 132 |
Income before assessments | 309 | 334 | 301 |
Affordable Housing Program assessments | 31 | 33 | 30 |
Net income | $ 278 | $ 301 | $ 271 |
Statements of Comprehensive Inc
Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 278 | $ 301 | $ 271 |
Net noncredit portion of other-than-temporary impairment losses on available-for-sale securities: | |||
Noncredit losses on available-for-sale securities | (1) | 0 | 0 |
Net change in fair value on other-than-temporarily impaired available-for-sale securities | 27 | (28) | (10) |
Reclassification of noncredit portion of impairment losses included in net income | 3 | 5 | 3 |
Total net noncredit portion of other-than-temporary impairment losses on available-for-sale securities | 29 | (23) | (7) |
Other comprehensive income (loss) related to pension and postretirement benefit plans | 0 | 3 | (10) |
Total other comprehensive income (loss) | 29 | (20) | (17) |
Total comprehensive income | $ 307 | $ 281 | $ 254 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Capital Stock Class B Putable [Member] | Retained Earnings [Member] | Retained Earnings, Restricted [Member] | Retained Earnings, Unrestricted [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning balance (shares) at Dec. 31, 2013 | 49 | |||||
Beginning balance at Dec. 31, 2013 | $ 6,652 | $ 4,883 | $ 1,657 | $ 141 | $ 1,516 | $ 112 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of capital stock (shares) | 50 | |||||
Issuance of capital stock | 5,034 | $ 5,034 | ||||
Repurchase/redemption of capital stock (shares) | (47) | |||||
Repurchase/redemption of capital stock | (4,760) | $ (4,760) | ||||
Net shares reclassified to mandatorily redeemable capital stock (shares) | 0 | |||||
Net shares reclassified to mandatorily redeemable capital stock | (7) | $ (7) | ||||
Comprehensive income (loss) | 254 | 271 | 54 | 217 | (17) | |
Cash dividends on capital stock | (182) | (182) | (182) | |||
Ending balance (shares) at Dec. 31, 2014 | 52 | |||||
Ending balance at Dec. 31, 2014 | 6,991 | $ 5,150 | 1,746 | 195 | 1,551 | 95 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of capital stock (shares) | 56 | |||||
Issuance of capital stock | 5,606 | $ 5,606 | ||||
Repurchase/redemption of capital stock (shares) | (57) | |||||
Repurchase/redemption of capital stock | (5,634) | $ (5,634) | ||||
Net shares reclassified to mandatorily redeemable capital stock (shares) | 0 | |||||
Net shares reclassified to mandatorily redeemable capital stock | (21) | $ (21) | ||||
Comprehensive income (loss) | 281 | 301 | 60 | 241 | (20) | |
Cash dividends on capital stock | (207) | (207) | (207) | |||
Ending balance (shares) at Dec. 31, 2015 | 51 | |||||
Ending balance at Dec. 31, 2015 | 7,016 | $ 5,101 | 1,840 | 255 | 1,585 | 75 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of capital stock (shares) | 54 | |||||
Issuance of capital stock | 5,405 | $ 5,405 | ||||
Repurchase/redemption of capital stock (shares) | (55) | |||||
Repurchase/redemption of capital stock | (5,544) | $ (5,544) | ||||
Net shares reclassified to mandatorily redeemable capital stock (shares) | 0 | |||||
Net shares reclassified to mandatorily redeemable capital stock | (7) | $ (7) | ||||
Comprehensive income (loss) | 307 | 278 | 55 | 223 | 29 | |
Cash dividends on capital stock | (226) | (226) | (226) | |||
Ending balance (shares) at Dec. 31, 2016 | 50 | |||||
Ending balance at Dec. 31, 2016 | $ 6,951 | $ 4,955 | $ 1,892 | $ 310 | $ 1,582 | $ 104 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities | |||
Net income | $ 278 | $ 301 | $ 271 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | (45) | (157) | (110) |
Reversal of provision for credit losses | (1) | (1) | (5) |
Loss due to change in net fair value adjustment on derivative and hedging activities | 43 | 119 | 62 |
Net change in fair value adjustment on trading securities | 30 | 61 | 61 |
Net impairment losses recognized in earnings | 3 | 5 | 3 |
Gain on extinguishment of debt | 0 | 0 | (15) |
Net change in: | |||
Accrued interest receivable | (1) | 8 | 20 |
Other assets | (6) | 10 | (17) |
Affordable Housing Program payable | 4 | (4) | (12) |
Accrued interest payable | 1 | (18) | (38) |
Other liabilities | (76) | 65 | 17 |
Total adjustments | (48) | 88 | (34) |
Net cash provided by operating activities | 230 | 389 | 237 |
Investing activities | |||
Interest-bearing deposits | 214 | 242 | 143 |
Securities purchased under agreements to resell | 1,114 | (540) | (1,960) |
Federal funds sold | (2,349) | 964 | (4,590) |
Trading securities: | |||
Proceeds from principal collected | 973 | 0 | 345 |
Purchases of long-term | 0 | (56) | 0 |
Available-for-sale securities: | |||
Proceeds from principal collected | 396 | 333 | 342 |
Held-to-maturity securities: | |||
Proceeds from principal collected | 5,641 | 6,694 | 3,183 |
Purchases of long-term | (7,044) | (6,249) | (6,862) |
Advances: | |||
Proceeds from principal collected | 265,686 | 234,088 | 176,124 |
Made | (261,105) | (239,051) | (186,125) |
Mortgage loans: | |||
Proceeds from principal collected | 127 | 150 | 158 |
Purchases from another FHLBank | (72) | 0 | 0 |
Proceeds from sale of foreclosed assets | 13 | 15 | 24 |
Purchase of premise, equipment, and software | (4) | (5) | (5) |
Net cash provided by (used in) investing activities | 3,590 | (3,415) | (19,223) |
Financing activities | |||
Net change in interest-bearing deposits | 29 | (31) | (688) |
Net payments on derivatives containing a financing element | (72) | (97) | (101) |
Proceeds from issuance of consolidated obligations: | |||
Discount notes | 517,242 | 657,757 | 470,192 |
Bonds | 75,617 | 61,513 | 84,624 |
Payments for debt issuance costs | (9) | (9) | (9) |
Payments for maturing and retiring consolidated obligations: | |||
Discount notes | (545,415) | (625,495) | (465,234) |
Bonds | (50,763) | (89,515) | (73,337) |
Proceeds from issuance of capital stock | 5,405 | 5,606 | 5,034 |
Payments for repurchase/redemption of capital stock | (5,544) | (5,634) | (4,760) |
Payments for repurchase/redemption of mandatorily redeemable capital stock | (20) | (26) | (12) |
Cash dividends paid | (226) | (207) | (182) |
Net cash (used in) provided by financing activities | (3,756) | 3,862 | 15,527 |
Net increase (decrease) in cash and due from banks | 64 | 836 | (3,459) |
Cash and due from banks at beginning of the year | 1,751 | 915 | 4,374 |
Cash and due from banks at end of the year | 1,815 | 1,751 | 915 |
Cash paid for: | |||
Interest | 536 | 354 | 402 |
Affordable Housing Program assessments, net | 25 | 35 | 39 |
Noncash investing and financing activities: | |||
Net shares reclassified to mandatorily redeemable capital stock | 7 | 21 | 7 |
Held-to-maturity securities acquired with accrued liabilities | 135 | 133 | 348 |
Transfers of mortgage loans to real estate owned | $ 5 | $ 12 | $ 18 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations The Federal Home Loan Bank of Atlanta (Bank) is a federally chartered corporation and is one of 11 district Federal Home Loan Banks (FHLBanks). Each FHLBank operates as a separate entity within a defined geographic district and has its own management, employees, and board of directors. The Bank's defined geographic district includes Alabama, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and the District of Columbia. The FHLBanks are government-sponsored enterprises that serve the public by enhancing the availability of credit for residential mortgages and targeted community developments. The primary function of the Bank is to provide readily available, competitively priced funding to its member institutions. The Bank is a cooperative whose member institutions own substantially all of the capital stock of the Bank. Former members and certain non-members, which own the Bank's capital stock as a result of a merger or acquisition of a member of the Bank, own the remaining capital stock to support business transactions still carried on the Bank's Statements of Condition. All holders of the Bank's capital stock are entitled to receive dividends on their capital stock, to the extent declared by the Bank's board of directors. Federally insured depository institutions, insurance companies, privately insured, state-chartered credit unions, and community development financial institutions that are located in the Bank's defined geographic district and engaged in residential housing finance are eligible to apply for membership. All members must purchase and hold capital stock of the Bank. A member's stock requirement is based on the amount of its total assets, as well as the amount of certain of its business activities with the Bank. State and local housing authorities that meet certain statutory criteria may also borrow from the Bank. While they are eligible to borrow, housing associates are not members of the Bank and are not allowed to hold capital stock. The Federal Housing Finance Agency (Finance Agency) is the independent federal regulator of the FHLBanks and is responsible for ensuring that the FHLBanks (1) operate in a safe and sound manner, including that they maintain adequate capital and internal controls; (2) foster liquid, efficient, competitive, and resilient national housing finance markets through their operations and activities; (3) comply with applicable laws and regulations; and (4) carry out their housing finance mission through authorized activities that are consistent with the public interest. The Finance Agency also establishes policies and regulations covering the operations of the FHLBanks. The Bank does not have any special purpose entities or any other types of off-balance sheet conduits. The Federal Home Loan Banks Office of Finance (Office of Finance), a joint office of the FHLBanks, facilitates the issuance and servicing of the FHLBanks' debt instruments, known as consolidated obligations, and prepares the combined quarterly and annual financial reports of the FHLBanks. As provided by the Federal Home Loan Bank Act of 1932, as amended (FHLBank Act), and applicable regulations, the Bank's consolidated obligations are backed only by the financial resources of the FHLBanks. Consolidated obligations are the primary source of funds for the Bank in addition to deposits, other borrowings, and capital stock issued to members. The Bank primarily uses these funds to provide advances to members. The Bank also provides members and non-members with correspondent banking services, such as safekeeping, wire transfer, and cash management services. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP) requires the Bank's management to make subjective assumptions and estimates, which are based upon the information then available to the Bank and are inherently uncertain and subject to change. These assumptions and estimates may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of income and expenses. Actual results could differ significantly from these estimates. Estimated Fair Values. The estimated fair value amounts, recorded on the Statements of Condition and in the note disclosures for the periods presented, have been determined by the Bank using available market and other pertinent information and reflect the Bank's best judgment of appropriate valuation methods. Although the Bank 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. Financial Instruments Meeting Netting Requirements. The Bank has certain financial instruments, including derivative instruments and securities purchased under agreements to resell, that are subject to offset under master netting agreements or by operation of law. The Bank has elected to offset its derivative asset and liability positions, as well as cash collateral received or pledged, when it has the legal right of offset under these master agreements. The Bank does not have any offsetting liabilities related to its securities purchased under agreements to resell for the periods presented. 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. There may be a delay for excess collateral to be returned. For derivative instruments, any excess cash collateral received or pledged is recognized as a derivative liability or derivative asset based on the terms of the individual master agreement between the Bank and its derivative counterparty. Additional information regarding these agreements is provided in Note 18—Derivatives and Hedging Activities. Based on the fair value of the related securities held as collateral, the securities purchased under agreements to resell were fully collateralized for the periods presented. Interest-bearing Deposits, Securities Purchased under Agreements to Resell, and Federal Funds Sold . These investments provide short-term liquidity and are carried at cost. The Bank treats securities purchased under agreements to resell as short-term collateralized loans, which are classified as assets on the Statements of Condition. Securities purchased under agreements to resell are held in safekeeping in the name of the Bank by third-party custodians approved by the Bank. Should the fair value of the underlying securities decrease 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 name of the Bank, 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 transacted with counterparties that are considered by the Bank to be of investment quality. Interest on interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold is accrued as earned and recorded in interest income on the Statements of Income. Investment Securities. The Bank classifies certain investment securities acquired for purposes of liquidity and asset-liability management as trading investments and carries these securities at their estimated fair value. The Bank records changes in the fair value of these investments in noninterest income (loss) as “Net losses on trading securities” on the Statements of Income, along with gains and losses on sales of investment securities using the specific identification method. The Bank does not participate in speculative trading practices in these investments and generally holds them until maturity, except to the extent management deems necessary to manage the Bank's liquidity position. Investment securities that the Bank has both the ability and intent to hold to maturity are classified as held-to-maturity and are carried at amortized cost, adjusted for periodic principal repayments, amortization of premiums, and accretion of discounts. Amortization of premiums and accretion of discounts are computed using the contractual level-yield method (contractual interest method), adjusted for actual prepayments. The contractual interest method recognizes the income effects of premiums and discounts over the contractual life of the securities based on the actual behavior of the underlying assets, including adjustments for actual prepayment activities, and reflects the contractual terms of the securities without regard to changes in estimated prepayments based on assumptions about future borrower behavior. The Bank classifies certain securities that are not held-to-maturity or trading as available-for-sale and carries these securities at their estimated fair value. The Bank records changes in the fair value of these investments in other comprehensive income. The Bank intends to hold its available-for-sale securities for an indefinite period of time but may sell them prior to maturity in response to changes in interest rates, prepayment risk, or other factors. Other-than-temporary Impairment of Investment Securities. The Bank evaluates its individual available-for-sale and held-to-maturity securities in unrealized loss positions for other-than-temporary impairment on a quarterly basis. A security is considered impaired when its fair value is less than its amortized cost. The Bank considers an other-than-temporary impairment to have occurred under any of the following circumstances: • the Bank has an intent to sell the impaired debt security; • if, based on available evidence, the Bank believes it is more likely than not that it will be required to sell the impaired debt security before the recovery of its amortized cost basis; or • the Bank does not expect to recover the entire amortized cost basis of the impaired debt security. If either of the first two conditions above is met, the Bank recognizes an other-than-temporary impairment loss in earnings equal to the entire difference between the security's amortized cost basis and its fair value as of the Statements of Condition date. For securities in an unrealized loss position that meet neither of the first two conditions, the Bank performs a cash flow analysis to determine if it will recover the entire amortized cost basis of each of these securities. The present value of the cash flows expected to be collected is compared to the amortized cost basis of the debt security to determine whether a credit loss exists. If there is a credit loss (the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security), the carrying value of the debt security is adjusted to its fair value. However, rather than recognizing the entire difference between the amortized cost basis and fair value in earnings, only the amount of the impairment representing the credit loss (i.e., the credit component) is recognized in earnings, while the amount related to all other factors (i.e., the non-credit component) is recognized in other comprehensive income. The credit loss on a debt security is limited to the amount of that security's unrealized losses. The total other-than-temporary impairment is presented on the Statements of Income with an offset for the amount of the non-credit component of other-than-temporary impairment that is recognized in other comprehensive income. The remaining amount on the Statements of Income represents the credit loss for the period. For subsequent accounting of an other-than-temporarily impaired security, the Bank records an additional other-than-temporary impairment if the present value of cash flows expected to be collected is less than the amortized cost of the security. The total amount of this additional other-than-temporary impairment (both credit and non-credit component, if any) is determined as the difference between the security's amortized cost, less the amount of other-than-temporary impairment recognized in other comprehensive income prior to the determination of this additional other-than-temporary impairment, and its fair value. Any additional credit loss is limited to that security's unrealized losses or the difference between the security's amortized cost and its fair value as of the Statements of Condition date. This additional credit loss, up to the amount in other comprehensive income related to the security, is reclassified out of other comprehensive income and recognized in earnings. Any credit loss in excess of the related other comprehensive income is recorded as additional total other-than-temporary impairment loss and recognized in earnings. For debt securities classified as available-for-sale, the Bank does not accrete the other-than-temporary impairment recognized in accumulated other comprehensive income to the carrying value. Rather, subsequent related increases and decreases (if not an other-than-temporary impairment) in the fair value of available-for-sale securities are netted against the non-credit component of other-than-temporary impairment recognized previously in accumulated other comprehensive income. Upon subsequent evaluation of a debt security where there is no additional other-than-temporary impairment, the Bank adjusts the accretable yield on a prospective basis if there is a significant increase in the security's expected cash flows. As of the impairment measurement date, a new accretable yield is calculated for the impaired investment security. This adjusted yield is then used to calculate the interest income recognized over the remaining life of the security so as to match the amount and timing of future cash flows expected to be collected. Subsequent significant increases in estimated cash flows change the accretable yield on a prospective basis. Advances. The Bank reports advances (secured loans to members, former members, or housing associates), net of discounts on advances related to the Affordable Housing Program (AHP) and the Economic Development and Growth Enhancement Program (EDGE), unearned commitment fees, and hedging basis adjustments. The Bank accretes the discounts on advances and amortizes the recognized unearned commitment fees and hedging adjustments to interest income using the contractual interest method. The Bank records interest on advances to interest income as earned. Prepayment Fees . The Bank charges a borrower a prepayment fee when the borrower prepays certain advances before the original maturity date. The Bank records prepayment fees, net of basis adjustments related to hedging activities included in the carrying value of the advance as “Prepayment fees on advances, net” in the interest income section of the Statements of Income. In cases in which there is a prepayment of an existing advance and a contemporaneous funding of a new advance, the Bank evaluates whether the new advance meets the accounting criteria to qualify as a modification of an existing advance or whether it constitutes a new advance. If the new advance qualifies as a modification of the existing advance, the hedging basis adjustments and the net prepayment fee on the prepaid advance are recorded in the carrying value of the modified advance and amortized over the life of the modified advance using the contractual interest method. This amortization is recorded in advance interest income. If the Bank determines that the transaction does not qualify as a modification of an existing advance, it is treated as an advance termination with subsequent funding of a new advance, and the Bank records the net fees as “Prepayment fees, net” in the interest income section of the Statements of Income. Mortgage Loans Held for Portfolio. The Bank classifies mortgage loans that it has the intent and ability to hold for the foreseeable future or until maturity or payoff as held for portfolio. Accordingly, these mortgage loans are reported net of unamortized premiums, unaccreted discounts, mark-to-market basis adjustments on loans initially classified as mortgage loan commitments, and any allowance for credit losses. The Bank defers and amortizes premiums and accretes discounts (1) paid to and received by the participating financial institutions (PFIs), and (2) of mark-to-market basis adjustments on loans initially classified as mortgage loan commitments, as interest income using the contractual interest method. A mortgage loan is considered past due when the principal or interest payment is not received in accordance with the contractual terms of the loan. The Bank places a conventional mortgage loan on nonaccrual status when the collection of the contractual principal or interest from the borrower is 90 days or more past due. When a mortgage loan is placed on nonaccrual status, accrued but uncollected interest is reversed against interest income. The Bank records cash payments received on nonaccrual loans as interest income and as a reduction of principal as specified in the contractual agreement. A loan on nonaccrual status may be restored to accrual status when the contractual principal and interest are less than 90 days past due. A government-guaranteed or -insured loan is not placed on nonaccrual status when the collection of the contractual principal or interest is 90 days or more past due because of the (1) U.S. government guarantee or insurance on the loan, and (2) the contractual obligation of the loan servicer to repurchase the loan when certain criteria are met. A mortgage loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the mortgage loan agreement. Interest income is recognized in the same manner as nonaccrual loans. Finance Agency regulations require that mortgage loans held in the Bank's portfolios be credit enhanced so that the Bank's risk of loss is limited to the losses of an investor in at least an investment-grade category, such as “BBB.” For conventional mortgage loans, PFIs retain a portion of the credit risk on the loans they sell to the Bank by providing credit enhancement either through a direct liability to pay credit losses up to a specified amount or through a contractual obligation to provide supplemental mortgage insurance. PFIs are paid a credit enhancement fee (CE Fee) for assuming credit risk, and in some instances, all or a portion of the CE Fee may be performance based. CE Fees are paid monthly based on the remaining unpaid principal balance of the loans in a master commitment. CE Fees are recorded as an offset to mortgage loan interest income. To the extent that the Bank experiences losses in a master commitment, it may be able to recapture CE Fees paid to the PFI to offset these losses. Allowance for Credit Losses. The allowance for credit losses is a valuation allowance separately established for each identified portfolio segment of financing receivables, if necessary, to provide for probable incurred losses in the Bank's portfolio as of the Statements of Condition date. 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 Bank has developed and documented a systematic methodology for determining an allowance for credit losses for the following portfolio segments of financing receivables: advances and standby letters of credit, government-guaranteed or -insured residential mortgage loans held for portfolio, conventional residential mortgage loans held for portfolio, term federal funds sold, and term securities purchased under agreements to resell. A portfolio segment may be further disaggregated into classes of financing receivables to the extent that it is needed to understand the exposure to credit risk arising from these financing receivables; however, the Bank determined that no further disaggregation of the portfolio segments identified above is needed. The Bank manages its credit exposure to advances through an integrated approach that includes (1) establishing a credit limit for each borrower; (2) an ongoing review of each borrower's financial condition; and (3) collateral and lending policies to limit risk of loss, while balancing each borrower's needs for a reliable source of funding. In addition, the Bank lends to financial institutions within its district and housing associates in accordance with federal statutes and Finance Agency regulations. Specifically, the Bank complies with the FHLBank Act, which requires the Bank to obtain sufficient collateral to fully secure advances. The estimated value of the collateral required to secure each borrower's advances is calculated by applying discounts to the fair value or unpaid principal balance of the collateral, as applicable. The Bank accepts certain investment securities, residential mortgage loans, deposits, and other real estate related assets as collateral. The Bank's capital stock owned by its member borrower is also pledged as additional collateral. Collateral arrangements may vary depending upon borrower credit quality, financial condition and performance, borrowing capacity, and the Bank's overall credit exposure to the borrower. The Bank can call for additional or substitute collateral to protect its security interest. The Bank believes that these policies effectively manage credit risk from advances. Based upon the financial condition of the borrower, the Bank either allows a borrower to retain physical possession of the collateral pledged to it or requires the borrower to specifically assign the collateral to or place the collateral in physical possession of the Bank or its safekeeping agent. The Bank requires its borrowers to execute an advances and security agreement that establishes the Bank's security interest in all collateral pledged by the borrower to the Bank. The Bank perfects its security interest in all pledged collateral. The FHLBank Act affords any security interest granted to the Bank by a borrower priority over the claims or rights of any other party (including any receiver, conservator, trustee, or similar party having rights of a lien creditor), except for claims or rights of a third party that (1) would be entitled to priority under otherwise applicable law, and (2) is an actual bona fide purchaser for value or is an actual secured party whose security interest is perfected in accordance with state law. Using a risk-based approach and taking into consideration each borrower's financial strength, the Bank considers the types and amounts of pledged collateral to be the primary indicator of credit quality on its advances. The Bank had rights to collateral on a borrower-by-borrower basis with an estimated value equal to or greater than its outstanding extensions of credit as of December 31, 2016 and 2015 . The Bank continues to evaluate and make changes to its collateral policies, as necessary, based on current market conditions. No advance was past due, on nonaccrual status, or considered impaired as of December 31, 2016 and 2015 . In addition, there were no troubled debt restructurings related to advances as of December 31, 2016 and 2015 . Based upon the collateral held as security, the Bank's collateral policies, credit analysis, and the repayment history on advances, the Bank did not anticipate any credit losses on advances as of December 31, 2016 and 2015 . Accordingly, the Bank has not recorded any allowance for credit losses on advances, nor has the Bank recorded any liability to reflect an allowance for credit losses for off-balance sheet credit exposure as of December 31, 2016 and 2015 . The Bank invested in government-guaranteed or -insured fixed-rate mortgage loans secured by one-to-four family residential properties. Government-guaranteed or -insured mortgage loans are mortgage loans guaranteed or insured by the Department of Veterans Affairs or the Federal Housing Administration. 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-guaranteed or -insured mortgage loans. Any losses incurred on these loans that are not recovered from the issuer or the guarantor are absorbed by the servicers. Therefore, the Bank only has credit risk for these loans if the servicer fails to pay for losses not covered by insurance or guarantees. Based on the Bank's assessment of its servicers, the Bank did not establish an allowance for credit losses for its government-guaranteed or -insured mortgage loan portfolio as of December 31, 2016 and 2015 . Modified loans that are considered a troubled debt restructuring are evaluated individually for impairment. All other conventional residential mortgage loans are evaluated collectively for impairment. The allowance for conventional residential mortgage loans is determined by an analysis (performed at least quarterly) that includes segregating the portfolio into various aging groups. For loans that are 60 days or less past due, the Bank calculates a loss severity, default rate, and the expected loss based on individual loan characteristics. For loans that are more than 60 days past due, the allowance is determined using an automated valuation model. A modified loan that is considered a troubled debt restructuring is individually evaluated for impairment when determining its related allowance for credit losses. Credit loss is measured by factoring in expected cash shortfalls (i.e., loss severity rate) incurred as of the reporting date, as well as the economic loss attributable to delaying the original contractual principal and interest due dates. A charge-off is recorded if the recorded investment in the loan will not be recovered. The Bank evaluates whether to record a charge-off on a conventional residential mortgage loan upon the occurrence of a confirming event. Once a loan is 180 days delinquent, the Bank classifies as a loss and charges off the portion of outstanding conventional residential mortgage loan balances in excess of the fair value of the underlying property, less costs to sell and adjusted for any available credit enhancements. Term federal funds sold are generally short-term, their recorded balance approximates fair value, and they are transacted with counterparties that the Bank considers to be of investment quality. The Bank's investment in federal funds sold are evaluated for purposes of an allowance for credit losses only if the investment is not paid when due. All investments in federal funds sold are unsecured and were repaid or expected to be repaid according to the contracted terms as of December 31, 2016 and 2015 . Securities purchased under agreements to resell are considered collateralized financing arrangements and effectively represent short-term loans transacted with counterparties that the Bank considers to be of investment quality. The terms of these loans are structured such that if the fair value of the underlying securities decreases below the fair value required as collateral, the counterparty must place an equivalent amount of additional securities as collateral or remit an equivalent amount of cash. If an agreement to resell is deemed to be impaired, the difference between the fair value of the collateral and the amortized cost of the agreement is recognized in earnings. Based upon the collateral held as security, the Bank determined that no allowance for credit losses was needed for the securities purchased under agreements to resell as of December 31, 2016 and 2015 . 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 Bank 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 realized gains, realized or unrealized losses, and carrying costs are included in noninterest income (loss) on the Statements of Income. REO is recorded in “Other assets” on the Statements of Condition. REO was $2 and $9 as of December 31, 2016 and 2015 , respectively. 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, including initial and variation margin, and accrued interest received from or pledged to clearing agents and/or counterparties. The fair values of derivatives are netted by the clearing agent and/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 on the Statements of Cash Flows unless the derivative meets the criteria to be a financing derivative. Derivatives not used for intermediary purposes are designated as either (1) a hedge of the fair value of (a) a recognized asset or liability or (b) an unrecognized firm commitment (a fair-value hedge); or (2) a non-qualifying hedge of an asset or liability for asset-liability management purposes. Changes in the fair value of a derivative that are effective as, and that are designated and qualify 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 (including changes that reflect losses or gains on firm commitments), are recorded in noninterest income (loss) as “Net gains on derivatives and hedging activities” on the Statements of Income. Any hedge ineffectiveness (which represents the amount by which the change in the fair value of the derivative differs from the change in the fair value of the hedged item) is recorded in noninterest income (loss) as “Net gains on derivatives and hedging activities” on the Statements of Income. A non-qualifying hedge is a derivative hedging specific or non-specific underlying assets, liabilities, or firm commitments that is an acceptable hedging strategy under the Bank's risk management program and Finance Agency regulatory requirements, but it does not qualify or was not designated for fair value or cash flow hedge accounting. A non-qualifying hedge introduces the potential for earnings variability because only the change in fair value of the derivative is recorded and is not offset by corresponding changes in the fair value of the non-qualifying hedged asset, liability, or firm commitment, unless such asset, liability, or firm commitment is required to be accounted for at fair value through earnings. Both the net interest on the derivative and the fair value adjustments of a non-qualifying hedge are recorded in noninterest income (loss) as “Net gains on derivatives and hedging activities” on the Statements of Income. The derivatives used in intermediary activities do not qualify for hedge accounting treatment and are separately marked-to-market through earnings. These amounts are recorded in noninterest income (loss) as “Net gains on derivatives and hedging activities” on the Statements of Income. The net result of the accounting for these derivatives does not significantly impact the Bank's results of operations. The net settlement of interest receivables and payables related to derivatives designated as fair-value hedges are recognized as adjustments to the interest income or interest expense of the designated hedged item. The net settlement of interest receivables and payables related to intermediated derivatives for members and other non-qualifying hedges are recognized in noninterest income (loss) as “Net gains on derivatives and hedging activities” on the Statements of Income. The Bank discontinues hedge accounting prospectively when (1) it determines that the derivative is no longer expected to be effective in offsetting changes in the fair value of a 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) the bank determines that designating the derivative as a hedging instrument is no longer appropriate. When hedge accounting is discontinued due to the Bank's determination that a derivative no longer qualifies as an effective fair-value hedge of an existing hedged item, or when the bank decides to cease the specific hedging activity, the Bank will either (1) terminate the derivative; or (2) continue to carry the derivative on the Statements of Condition at its fair value, cease to adjust the hedged asset or liability for changes in fair value, and amortize the cumulative basis adjustment on the hedged item into earnings over the remaining life of the hedged item using the level-yield method. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Bank will carry the derivative at its fair value on the Statements of Condition, recognizing changes in the fair value of the derivative in current-period earnings. The Bank may issue debt, make advances, or purchase financial instruments in which a derivative instrument may be “embedded.” Upon execution of these transactions, the Bank assesses whether the economic characteristics of the embedded derivative are clearly and closely related to the economic characteristics of the remaining component of the advance, debt, or purchased financial instruments (i.e., 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 it is determined that (1) the embedded derivative possesses 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 a non-qualifying 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 (e.g., an investment security classified as “trading”), or if the Bank could not identify and measure reliably the embedded derivative for purposes of separating that derivative from its host contract, the entire contract would be carried on the Statements of Condition at fair value, and no portion of the contract could be designated as a hedging instrument. Premises, Equipment, and Software. The Bank records premises and equipment at cost less accumulated depreciation. The Bank's accumulated depreciation was $64 and $66 as of December 31, 2016 and 2015 , respectively. The Bank computes depreciation using the straight-line method over the estimated useful lives of assets. The estimated useful lives in years are generally as follows: automobiles and computer hardware- three ; office equipment- eight ; office furniture and building improvements- 10 ; and building- 40 . The Bank amortizes leasehold improvements using the straight-line method over the shorter of the estimated useful life of the improvement or the remaining term of the lease. The Bank capitalizes improvements and expenses ordinary maintenance and repairs when incurred. Depreciation expense was $4 for the years ended D |
Recently Issued and Adopted Acc
Recently Issued and Adopted Accounting Guidance | 12 Months Ended |
Dec. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued And Adopted Accounting Guidance | Recently Issued and Adopted Accounting Guidance Recently Issued Accounting Guidance Classification of Certain Cash Receipts and Cash Payments. In August 2016, the Financial Accounting Standards Board (FASB) issued guidance intended to reduce diversity in how cash receipts and cash payments are presented and classified on the Statements of Cash Flows for certain transactions. This guidance becomes effective for the Bank for the interim and annual periods beginning after December 15, 2017, and early application is permitted. The adoption of this guidance will not have an impact on the Bank's financial condition, results of operations, or cash flows. Measurement of Credit Losses on Financial Instruments. In June 2016, the FASB issued guidance intended to improve the timeliness of recording credit losses on loans and other financial instruments held by financial institutions and other organizations. This guidance requires all expected credit losses for financial assets that are held at the reporting date to be measured based on historical experience, current conditions, and reasonable and supportable forecasts. Credit losses related to available-for-sale securities will be recorded through an allowance for credit losses. Additionally, this guidance amends the accounting for purchased financial assets with credit deterioration and requires enhanced disclosures that provide additional information to help financial statement users better understand significant estimates and judgments. This guidance becomes effective for the Bank for the interim and annual periods beginning after December 15, 2019. Early application is permitted for the interim and annual periods beginning after December 15, 2018 although the Bank does not intend to adopt this guidance early. The Bank is in the process of evaluating this guidance, and its impact on the Bank’s financial condition and results of operations will depend upon the composition of the financial assets held by the Bank at the adoption date, as well as the economic conditions and forecasts at that time. Leases. In February 2016, the FASB issued guidance on accounting for leases and disclosure of key information about leasing arrangements. This guidance requires lessees to recognize the following for all operating and finance leases at the commencement date: (1) a lease liability, which is the obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset representing the lessee’s right to use, or control the use of, the underlying asset for the lease term. A lessee is permitted to make an accounting policy election not to recognize lease assets and lease liabilities for short-term leases with a term of 12 months or less. This guidance does not fundamentally change lessor accounting; however, some changes have been made to align that guidance with the lessee guidance and other areas within GAAP. This guidance becomes effective for the Bank for the interim and annual periods beginning after December 15, 2018. Early application is permitted although the Bank does not intend to adopt this guidance early. This guidance will be applied on a modified retrospective basis for leases existing at, or entered into after, the earliest period presented in the financial statements. The adoption of this guidance is not expected to have a material impact on the Bank's financial condition or results of operations. Recognition and Measurement of Financial Assets and Financial Liabilities . In January 2016, the FASB issued guidance designed to improve the recognition, measurement, presentation, and disclosure of financial instruments through targeted changes to existing GAAP. These changes require the following: (1) entities to measure equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) at fair value with changes in fair value recognized in net income; (2) public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (3) entities to separately present financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (4) reporting entities to separately present in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own credit”) when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. Additionally, these changes eliminate the requirement for public business entities to disclose the method and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. This guidance becomes effective for the Bank for the interim and annual periods beginning after December 31, 2017. The adoption of this guidance is not expected to have a material impact on the Bank’s financial condition or results of operations. Revenue from Contracts with Customers . In May 2014, the FASB issued guidance on the recognition of revenue from contracts with customers. The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Financial instruments and other contractual rights are excluded from the scope of this new revenue recognition guidance and will continue to be accounted for under existing guidance. In 2017 and 2016, the FASB issued amendments, which did not change the core principle of the original guidance, but clarified certain aspects of the guidance. This guidance becomes effective for the Bank for the interim and annual reporting periods beginning after December 15, 2017. This guidance will be applied retrospectively either to each prior reporting period or with a cumulative effect recognized at the date of initial application. Early application is permitted for the interim and annual reporting periods beginning after December 15, 2016 although the Bank does not intend to adopt this guidance early. Because the majority of contracts with the Bank's members are excluded from the scope of this guidance, this guidance is not expected to have a material impact on the Bank’s financial condition or results of operations. Recently Adopted Accounting Guidance Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. In January 2015, the FASB issued amended guidance that eliminates the concept of extraordinary items from GAAP. This guidance became effective for the Bank for the interim and annual periods beginning on January 1, 2016. However, this guidance did not have an impact on the Bank’s financial condition or results of operations. Amendments to the Consolidation Analysis. In February 2015, the FASB issued amended guidance intended to enhance consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). The new guidance places more emphasis on risk of loss when determining a controlling financial interest. Additionally, this guidance reduces the frequency of the application of related-party guidance when determining a controlling financial interest in a variable interest entity. This guidance became effective for the Bank for the interim and annual periods beginning on January 1, 2016. However, this guidance did not have an impact on the Bank's financial condition or results of operations. Simplifying the Presentation of Debt Issuance Costs. In April 2015, the FASB issued guidance that requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This guidance became effective for the Bank for the interim and annual periods beginning on January 1, 2016. This amended guidance was applied on a retrospective basis to each individual period presented on the Statements of Condition. As a result, $7 of debt issuance costs that were included in other assets were reclassified as a reduction in the corresponding consolidated obligations balance. Specifically, the reclassification resulted in a $5 reduction in the consolidated bonds balance and a $2 reduction in the consolidated discount notes balance on the Bank's Statements of Condition as of December 31, 2015. Accordingly, the Bank's total assets and total liabilities each decreased by $7 as of December 31, 2015. However, the adoption of this guidance did not have an impact on the Bank's results of operations. Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. In March 2016, the FASB issued amended guidance designed to clarify that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The Bank early adopted this guidance prospectively, and it became effective for the interim and annual periods beginning on January 1, 2016. However, the adoption of this guidance did not have an impact on the Bank's financial condition or results of operations. Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. In August 2014, the FASB issued guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide the related footnote disclosures. This guidance requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. This guidance became effective for the Bank for the annual period ending December 31, 2016, and the annual and interim periods thereafter. However, the adoption of this guidance did not have an impact on the Bank's financial condition or results of operations. Contingent Put and Call Options in Debt Instruments . In March 2016, the FASB issued amended guidance to clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. This guidance requires entities to apply only the four-step decision sequence when performing this assessment. Consequently, when a call (put) option is contingently exercisable, an entity should not assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks. This guidance became effective for the Bank for the interim and annual periods beginning on January 1, 2017. This guidance was applied on a modified retrospective basis to existing debt instruments as of the beginning of the period for which the amendments are effective. However, the adoption of this guidance did not have an impact on the Bank's financial condition or results of operations. |
Cash and Due from Banks
Cash and Due from Banks | 12 Months Ended |
Dec. 31, 2016 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Due from Banks | Cash and Due from Banks The Bank maintains a collected cash balance with a commercial bank, which is a member, in return for certain services, and the average collected cash balance was $7 and $8 for the years ended December 31, 2016 and 2015 , respectively. There are no legal restrictions regarding the withdrawal of these funds. |
Trading Securities
Trading Securities | 12 Months Ended |
Dec. 31, 2016 | |
Trading Securities [Abstract] | |
Trading Securities | Trading Securities Major Security Types. The following table presents trading securities. As of December 31, 2016 2015 Government-sponsored enterprises debt obligations $ 261 $ 1,212 Another FHLBank’s bond (1) — 52 State or local housing agency debt obligations 1 1 Total $ 262 $ 1,265 ____________ (1) The Federal Home Loan Bank of Chicago is the primary obligor of this consolidated obligation bond. The following table presents net losses on trading securities. For the Years Ended December 31, 2016 2015 2014 Net losses on trading securities held at year end $ (8 ) $ (61 ) $ (53 ) Net losses on trading securities that matured during the year (22 ) — (7 ) Net losses on trading securities $ (30 ) $ (61 ) $ (60 ) |
Available-for-sale Securities
Available-for-sale Securities | 12 Months Ended |
Dec. 31, 2016 | |
Available-for-sale Securities [Abstract] | |
Available-for-sale Securities | Available-for-sale Securities Major Security Type. The following table presents information on private-label residential mortgage-backed securities (MBS) that are classified as available-for-sale. Amortized Cost Other-than-temporary Impairment Recognized in Accumulated Other Comprehensive Income Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value As of December 31, 2016 $ 1,221 $ 6 $ 130 $ — $ 1,345 As of December 31, 2015 $ 1,567 $ 19 $ 114 $ — $ 1,662 The following table presents private-label residential MBS that are classified as available-for-sale with unrealized losses. The unrealized losses are aggregated by the length of time that the individual securities have been in a continuous unrealized loss position. Less than 12 Months 12 Months or More Total Number of Positions Estimated Fair Value Gross Unrealized Losses Number of Positions Estimated Fair Value Gross Unrealized Losses Number of Positions Estimated Fair Value Gross Unrealized Losses As of December 31, 2016 1 $ 14 $ — 10 $ 189 $ 6 11 $ 203 $ 6 As of December 31, 2015 3 $ 107 $ 2 10 $ 247 $ 17 13 $ 354 $ 19 Interest-rate Payment Terms. The following table presents interest-rate payment terms for investment securities classified as available-for-sale. As of December 31, 2016 2015 Variable-rate $ 1,202 $ 1,540 Fixed-rate 19 27 Total amortized cost $ 1,221 $ 1,567 The following table presents private-label residential MBS that are classified as available-for-sale and issued by members or affiliates of members, all of which have been issued by Bank of America Corporation, Charlotte, NC. Amortized Cost Other-than-temporary Impairment Recognized in Accumulated Other Comprehensive Income Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value As of December 31, 2016 $ 792 $ 5 $ 102 $ — $ 889 As of December 31, 2015 $ 1,037 $ 16 $ 77 $ — $ 1,098 |
Held-to-maturity Securities
Held-to-maturity Securities | 12 Months Ended |
Dec. 31, 2016 | |
Held-to-maturity Securities, Unclassified [Abstract] | |
Held-to-maturity Securities | Held-to-maturity Securities Major Security Types. The following table presents held-to-maturity securities. As of December 31, 2016 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated State or local housing agency debt obligations $ 76 $ — $ — $ 76 $ 76 $ — $ — $ 76 Government-sponsored enterprises debt obligations 6,041 3 5 6,039 5,693 — 12 5,681 Mortgage-backed securities: U.S. agency obligations-guaranteed residential 209 2 — 211 279 4 — 283 Government-sponsored enterprises residential 10,752 44 43 10,753 11,958 88 31 12,015 Government-sponsored enterprises commercial 6,773 2 11 6,764 4,140 — 16 4,124 Private-label residential 790 5 5 790 1,093 4 13 1,084 Total $ 24,641 $ 56 $ 64 $ 24,633 $ 23,239 $ 96 $ 72 $ 23,263 The following tables present held-to-maturity securities with unrealized losses. The unrealized losses are aggregated by major security type and by the length of time that the individual securities have been in a continuous unrealized loss position. As of December 31, 2016 Less than 12 Months 12 Months or More Total Number of Positions Estimated Fair Value Gross Unrealized Losses Number of Positions Estimated Fair Value Gross Unrealized Losses Number of Positions Estimated Fair Value Gross Unrealized Losses Government-sponsored enterprises debt obligations 10 $ 2,532 $ 5 — $ — $ — 10 $ 2,532 $ 5 Mortgage-backed securities: Government-sponsored enterprises residential 46 2,813 22 63 2,206 21 109 5,019 43 Government-sponsored enterprises commercial 52 4,147 6 22 1,540 5 74 5,687 11 Private-label residential 6 10 — 56 432 5 62 442 5 Total 114 $ 9,502 $ 33 141 $ 4,178 $ 31 255 $ 13,680 $ 64 As of December 31, 2015 Less than 12 Months 12 Months or More Total Number of Positions Estimated Fair Value Gross Unrealized Losses Number of Positions Estimated Fair Value Gross Unrealized Losses Number of Positions Estimated Fair Value Gross Unrealized Losses Government-sponsored enterprises debt obligations 20 $ 4,535 $ 7 3 $ 745 $ 5 23 $ 5,280 $ 12 Mortgage-backed securities: Government-sponsored enterprises residential 41 3,233 21 8 443 10 49 3,676 31 Government-sponsored enterprises commercial 31 2,680 9 25 1,037 7 56 3,717 16 Private-label residential 29 407 2 47 428 11 76 835 13 Total 121 $ 10,855 $ 39 83 $ 2,653 $ 33 204 $ 13,508 $ 72 Redemption Terms. The following table presents the amortized cost and estimated fair value of held-to-maturity securities by contractual maturity. Expected maturities of some securities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees. As of December 31, 2016 2015 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Non-mortgage-backed securities: Due in one year or less $ 2,454 $ 2,455 $ 651 $ 651 Due after one year through five years 3,487 3,484 5,118 5,106 Due after five years through ten years 176 176 — — Total non-mortgage-backed securities 6,117 6,115 5,769 5,757 Mortgage-backed securities 18,524 18,518 17,470 17,506 Total $ 24,641 $ 24,633 $ 23,239 $ 23,263 Interest-rate Payment Terms. The following table presents interest-rate payment terms for investment securities classified as held-to-maturity. As of December 31, 2016 2015 Non-mortgage-backed securities: Fixed-rate $ 2,413 $ 1,915 Variable-rate 3,704 3,854 Total non-mortgage-backed securities 6,117 5,769 Mortgage-backed securities: Fixed-rate 2,438 2,949 Variable-rate 16,086 14,521 Total mortgage-backed securities 18,524 17,470 Total amortized cost $ 24,641 $ 23,239 The following table presents private-label residential MBS that are classified as held-to-maturity and issued by members or affiliates of members, all of which have been issued by Bank of America Corporation, Charlotte, NC. Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value As of December 31, 2016 $ 177 $ — $ 2 $ 175 As of December 31, 2015 $ 286 $ — $ 5 $ 281 |
Other-than-temporary Impairment
Other-than-temporary Impairment | 12 Months Ended |
Dec. 31, 2016 | |
Other than Temporary Impairment Losses, Investments [Abstract] | |
Other-than-temporary Impairment | Other-than-temporary Impairment Mortgage-backed Securities. The Bank’s investments in MBS consist of U.S. agency guaranteed securities and senior tranches of private-label MBS. The Bank has increased exposure to the risk of loss on its investments in MBS when the loans backing the MBS exhibit high rates of delinquency and foreclosures, as well as losses on the sale of foreclosed properties. To reduce its risk of loss on such securities, the Bank regularly requires high levels of credit enhancements from the structure of the collateralized mortgage obligation. Credit enhancements are defined as the percentage of subordinate tranches, overcollateralization, or excess spread, or the support of monoline insurance, if any, in a security structure that will absorb the losses before the security that the Bank purchased will take a loss. The Bank does not purchase credit enhancements for its MBS from monoline insurance companies. The Bank’s investments in private-label MBS were rated “AAA” (or its equivalent) by a nationally recognized statistical rating organization (NRSRO), such as Moody’s Investors Service (Moody’s) and Standard and Poor’s Ratings Services (S&P), at their purchase dates. The “AAA”-rated securities achieved their ratings through credit enhancement, overcollateralization, and senior-subordinated shifting interest features; the latter results in subordination of payments by junior classes to ensure cash flows to the senior classes. The ratings on all of the Bank’s private-label MBS have changed since their purchase dates. Non-private-label MBS . The unrealized losses related to U.S. agency MBS are caused by interest rate changes, not credit quality. These securities are guaranteed by government agencies or government-sponsored enterprises and the Bank does not expect these securities to be settled at a price less than their amortized cost basis. In addition, the Bank does not intend to sell these investments and it is not more likely than not that the Bank will be required to sell these investments before recovery of their amortized cost basis, which may be at maturity. The Bank does not consider these investments to be other-than-temporarily impaired as of December 31, 2016 . Private-label MBS . To assess whether the entire amortized cost basis of its private-label MBS will be recovered, the Bank performs a cash flow analysis for each of its private-label MBS using two third-party models. The first third-party model considers borrower characteristics and the particular attributes of the loans underlying the Bank’s securities, in conjunction with assumptions about future changes in home prices and interest rates, to project prepayments, defaults, and loss severities. A significant input to the first model is the forecast of future housing price changes for the relevant states and core based statistical areas (CBSA), which are based upon an assessment of the individual housing markets. The term CBSA refers collectively to metropolitan and micropolitan statistical areas as defined by the United States Office of Management and Budget; as currently defined, a CBSA must contain at least one urban area with a population of 10,000 or more people. The Bank’s housing price forecast as of December 31, 2016 included a short-term housing price forecast with projected changes ranging from a decrease of three percent to an increase of 10 percent over the 12 month period beginning October 1, 2016. For the vast majority of markets, the projected short-term housing price changes range from an increase of two percent to an increase of six percent . Thereafter, a unique path is projected for each geographic area based on an internally developed framework derived from historical data. The month-by-month projections of future loan performance derived from the first model, which reflect projected prepayments, defaults, and loss severities, were then input into a second model. The second model allocates the projected loan level cash flows and losses to the various security classes in the securitization structure in accordance with its prescribed cash flow and loss allocation rules. At each quarter end, the Bank compares the present value of the cash flows (discounted at the securities' effective yield) expected to be collected with respect to its private-label MBS to the amortized cost basis of the security to determine whether a credit loss exists. For the Bank’s variable rate and hybrid private-label MBS, the Bank uses a forward interest rate curve to project the future estimated cash flows. The Bank then uses the effective interest rate for the security prior to impairment for determining the present value of the future estimated cash flows. For securities previously identified as other-than-temporarily impaired, the Bank updates its estimate of future estimated cash flows on a quarterly basis. The following table presents a summary of the significant inputs used to measure the amount of the credit loss recognized in earnings for those securities for which an other-than-temporary impairment was determined to have occurred during the year ended December 31, 2016 , as well as the related current credit enhancement. Significant Inputs - Weighted Average (%) (1) Classification of Securities Prepayment Rates Default Rates Loss Severities Current Credit Enhancement (%) Prime 15.02 4.62 19.73 0.24 Alt-A 12.13 17.56 40.22 0.00 Total 12.31 16.76 38.95 0.02 ____________ (1) The classification of securities is based on current characteristics and performance, which may be different from the securities’ classification as determined by the originator at the time of origination. The following table presents a roll-forward of the amount of credit losses on the Bank’s investment securities recognized in earnings during the life of the securities for which a portion of the other-than-temporary loss was recognized in accumulated other comprehensive income. For the Years Ended December 31, 2016 2015 2014 Balance, beginning of year $ 505 $ 542 $ 574 Amount related to credit loss for which an other-than-temporary impairment was previously recognized 3 5 3 Increase in cash flows expected to be collected, (accreted as interest income over the remaining lives of the applicable securities) (53 ) (42 ) (35 ) Balance, end of year $ 455 $ 505 $ 542 Certain other private-label MBS that have not been designated as other-than-temporarily impaired have experienced unrealized losses and decreases in fair value due to interest rate volatility and illiquidity in the marketplace. These declines in fair value are considered temporary as the Bank expects to recover the amortized cost basis of the securities, the Bank does not intend to sell these securities, and it is not more likely than not that the Bank will be required to sell these securities before the anticipated recovery of the securities’ remaining amortized cost basis, which may be at maturity. This assessment is based on the fact that the Bank has sufficient capital and liquidity to operate its business and has no need to sell these securities, nor has the Bank entered into any contractual constraints that would require the Bank to sell these securities. |
Advances
Advances | 12 Months Ended |
Dec. 31, 2016 | |
Advances [Abstract] | |
Advances | Advances Redemption Terms. The Bank had advances outstanding at interest rates ranging from zero percent to 7.55 percent as of December 31, 2016 . Advances with interest rates of zero percent are AHP and EDGE subsidized advances and certain structured advances. The following table presents the Bank's advances outstanding. As of December 31, 2016 2015 Overdrawn demand deposit accounts $ — $ 16 Due in one year or less 47,325 46,673 Due after one year through two years 8,244 12,747 Due after two years through three years 5,904 6,360 Due after three years through four years 5,859 2,994 Due after four years through five years 11,846 4,616 Due after five years 19,110 29,458 Total par value 98,288 102,864 Discount on AHP advances (5 ) (6 ) Discount on EDGE advances (4 ) (4 ) Hedging adjustments 798 1,315 Deferred commitment fees — (1 ) Total $ 99,077 $ 104,168 The Bank offers callable advances to members that may be prepaid on prescribed dates (call dates) without incurring prepayment or termination fees. The Bank also offers prepayable advances, which are variable-rate advances that may be contractually prepaid by the borrower on specified dates without incurring prepayment or termination fees. Other advances may be prepaid only by paying a fee to the Bank, so the Bank is financially indifferent to the prepayment of the advance. The Bank had callable and prepayable advances outstanding of $27,459 and $25,565 as of December 31, 2016 and 2015 , respectively. The following table presents advances by year of contractual maturity or next call date for callable advances. As of December 31, 2016 2015 Overdrawn demand deposit accounts $ — $ 16 Due or callable in one year or less 72,404 71,243 Due or callable after one year through two years 7,680 11,593 Due or callable after two years through three years 3,740 5,545 Due or callable after three years through four years 2,289 2,214 Due or callable after four years through five years 4,570 2,371 Due or callable after five years 7,605 9,882 Total par value $ 98,288 $ 102,864 Convertible advances offered by the Bank allow the Bank to convert the fixed-rate advance to a variable-rate advance at the current market rate on certain specified dates. The Bank had convertible advances outstanding of $1,497 and $2,394 as of December 31, 2016 and 2015 , respectively. The following table presents advances by year of contractual maturity or, for convertible advances, next conversion date. As of December 31, 2016 2015 Overdrawn demand deposit accounts $ — $ 16 Due or convertible in one year or less 47,935 48,743 Due or convertible after one year through two years 7,724 11,434 Due or convertible after two years through three years 5,943 5,768 Due or convertible after three years through four years 5,867 3,020 Due or convertible after four years through five years 11,866 4,609 Due or convertible after five years 18,953 29,274 Total par value $ 98,288 $ 102,864 Interest-rate Payment Terms. The following table presents interest-rate payment terms for advances. As of December 31, 2016 2015 Fixed-rate: Due in one year or less $ 38,597 $ 32,011 Due after one year 24,528 27,051 Total fixed-rate 63,125 59,062 Variable-rate: Due in one year or less 8,728 14,678 Due after one year 26,435 29,124 Total variable-rate 35,163 43,802 Total par value $ 98,288 $ 102,864 Credit Risk. The Bank’s potential credit risk from advances is concentrated in commercial banks, thrifts, and credit unions and further is concentrated in certain larger borrowing relationships. The concentration of the Bank's advances to its 10 largest borrowers was $67,493 and $75,842 as of December 31, 2016 and 2015 , respectively. This concentration represented 68.7 percent and 73.7 percent of total advances outstanding as of December 31, 2016 and 2015 , respectively. Based on the collateral pledged as security for advances, the Bank's credit analysis of members’ financial condition, and prior repayment history, no allowance for credit losses on advances was deemed necessary by the Bank as of December 31, 2016 and 2015 . No advance was past due as of December 31, 2016 and 2015 . For additional information related to the Bank's credit risk on advances and allowance for credit losses, see Note 2 — Summary of Significant Accounting Policies. |
Mortgage Loans Held for Portfol
Mortgage Loans Held for Portfolio | 12 Months Ended |
Dec. 31, 2016 | |
Mortgage Loans on Real Estate [Abstract] | |
Mortgage Loans Held for Portfolio | Mortgage Loans Held for Portfolio The Bank purchased fixed-rate residential mortgage loans directly from PFIs, who service and credit enhance the residential mortgage loans that they sold to the Bank. The Bank ceased purchasing these loans directly from PFIs in 2008. The Bank may also acquire fixed-rate residential mortgage loans through participations in eligible mortgage loans purchased from other FHLBanks. The following table presents information on mortgage loans held for portfolio by contractual maturity at the time of purchase. As of December 31, 2016 2015 Medium-term (15 years or less) $ 40 $ 66 Long-term (greater than 15 years) 485 521 Total unpaid principal balance 525 587 Premiums 2 2 Discounts (3 ) (3 ) Total $ 524 $ 586 The following table presents the unpaid principal balance of mortgage loans held for portfolio by collateral or guarantee type. As of December 31, 2016 2015 Conventional mortgage loans $ 492 $ 546 Government-guaranteed or insured mortgage loans 33 41 Total unpaid principal balance $ 525 $ 587 The Bank records credit enhancement fees related to residential mortgage loans as a reduction to mortgage loan interest income. For information related to the Bank's credit risk on mortgage loans and allowance for credit losses, see Note 11 — Allowance for Credit Losses. |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2016 | |
Allowance for Credit Losses [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses The following table presents the activity in the allowance for credit losses related to conventional residential mortgage loans. For the Years Ended December 31, 2016 2015 2014 Balance, beginning of year $ 2 $ 3 $ 11 Reversal of provision for credit losses (1 ) (1 ) (5 ) Charge-offs — — (3 ) Balance, end of year $ 1 $ 2 $ 3 The following table presents the recorded investment in conventional residential mortgage loans by impairment methodology. As of December 31, 2016 2015 Allowance for credit losses: Collectively evaluated for impairment $ 1 $ 2 Recorded investment: Individually evaluated for impairment $ 12 $ 15 Collectively evaluated for impairment 481 532 Total recorded investment $ 493 $ 547 Key credit quality indicators for mortgage loans include the migration of past due mortgage loans, nonaccrual mortgage loans, and mortgage loans in process of foreclosure. The following tables present the Bank's recorded investment in mortgage loans by these key credit quality indicators. As of December 31, 2016 Conventional Residential Mortgage Loans Government-guaranteed or Insured Residential Mortgage Loans Total Past due 30-59 days $ 17 $ 4 $ 21 Past due 60-89 days 3 1 4 Past due 90 days or more 12 1 13 Total past due mortgage loans 32 6 38 Total current mortgage loans 461 27 488 Total mortgage loans (1) $ 493 $ 33 $ 526 Other delinquency statistics: In process of foreclosure (2) $ 6 $ 1 $ 7 Seriously delinquent rate (3) 2.44 % 3.75 % 2.53 % Past due 90 days or more and still accruing interest (4) $ — $ 1 $ 1 Mortgage loans on nonaccrual status (5) $ 12 $ — $ 12 ____________ (1) The difference between the recorded investment and the carrying value of total mortgage loans of $2 relates to accrued interest. (2) Includes mortgage loans where the decision of foreclosure or similar alternative, such as a pursuit of deed-in lieu, has been reported. Mortgage loans in the process of foreclosure are included in past due or current mortgage loans depending on their delinquency status. (3) Mortgage loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total mortgage loan portfolio segment. (4) Mortgage loans insured or guaranteed by the Federal Housing Administration or the Department of Veterans Affairs. (5) Represents mortgage loans with contractual principal or interest payments 90 days or more past due and not accruing interest. As of December 31, 2015 Conventional Residential Mortgage Loans Government-guaranteed or Insured Residential Mortgage Loans Total Past due 30-59 days $ 17 $ 4 $ 21 Past due 60-89 days 5 1 6 Past due 90 days or more 18 3 21 Total past due mortgage loans 40 8 48 Total current mortgage loans 507 34 541 Total mortgage loans (1) $ 547 $ 42 $ 589 Other delinquency statistics: In process of foreclosure (2) $ 9 $ 1 $ 10 Seriously delinquent rate (3) 3.32 % 6.65 % 3.55 % Past due 90 days or more and still accruing interest (4) $ — $ 3 $ 3 Mortgage loans on nonaccrual status (5) $ 18 $ — $ 18 ____________ (1) The difference between the recorded investment and the carrying value of total mortgage loans of $3 relates to accrued interest. (2) Includes mortgage loans where the decision of foreclosure or similar alternative, such as a pursuit of deed-in lieu, has been reported. Mortgage loans in the process of foreclosure are included in past due or current mortgage loans depending on their delinquency status. (3) Mortgage loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total mortgage loan portfolio segment. (4) Mortgage loans insured or guaranteed by the Federal Housing Administration or the Department of Veterans Affairs. (5) Represents mortgage loans with contractual principal or interest payments 90 days or more past due and not accruing interest. A troubled debt restructuring is considered to have occurred when a concession that would not have been considered otherwise is granted to a borrower for economic or legal reasons related to the borrower's financial difficulties. The Bank has granted a concession when it does not expect to collect all amounts due under the original contract as a result of the restructuring. In the event the Bank grants a concession, the borrower's monthly payment is restructured for a period of up to 36 months to try to achieve a target housing expense ratio of not more than 31.0 percent of their qualifying income. To restructure the loan, the outstanding principal balance is first re-amortized to reflect a principal and interest payment for a term not to exceed 40 years. This results in a balloon payment at the original maturity date of the loan as the maturity date and number of remaining monthly payments are not adjusted. If the 31.0 percent housing expense ratio is not achieved through re-amortization, the interest rate is reduced below the original note rate in 0.125 percent increments to a floor rate of 3.00 percent until the target 31.0 percent housing expense ratio is met. These reductions in principal and interest payments are for the temporary payment modification period of up to 36 months. Additionally, a conventional residential mortgage loan in which the borrower filed for Chapter 7 bankruptcy and the bankruptcy court discharged the borrower's obligation to the Bank, is considered a troubled debt restructuring. Troubled debt restructurings are evaluated individually for impairment. The following table presents the Bank's recorded investment balance in mortgage loans classified as troubled debt restructurings. As of December 31, 2016 2015 Performing Non-performing Total Performing Non-performing Total Conventional residential mortgage loans $ 10 $ 2 $ 12 $ 13 $ 2 $ 15 Due to the minimal change in terms of modified loans (i.e., no write-offs of principal), the Bank's pre-modification recorded investment was not materially different than the post-modification recorded investment in troubled debt restructurings during the years ended December 31, 2016 , 2015 , and 2014 . The financial amounts related to the Bank's troubled debt restructurings and impaired loans are not material to the Bank's financial condition or results of operations for the periods presented. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Deposits | Deposits The Bank offers demand and overnight deposits for members and qualifying non-members. A member that services mortgage loans may deposit funds in the Bank that were collected in connection with the mortgage loans, pending disbursement of such funds to the owners of the mortgage loans. The Bank records these items in "Interest-bearing deposits" on the Statements of Condition. The Bank pays interest on demand and overnight deposits based on a daily interest rate. |
Consolidated Obligations
Consolidated Obligations | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Consolidated Obligations | Consolidated Obligations Consolidated obligations, consisting of consolidated obligation bonds and discount notes, are the joint and several obligations of the FHLBanks and are backed only by the financial resources of the FHLBanks. The Bank is primarily liable for its portion of consolidated obligations (i.e., those issued on its behalf) and also is 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 Finance Agency, at its discretion, may require any FHLBank to make principal or interest payments due on any consolidated obligation, whether or not the consolidated obligation represents a primary liability of such FHLBank. Although it has never occurred, to the extent that an FHLBank makes any payment on a consolidated obligation on behalf of another FHLBank that is primarily liable for such consolidated obligation, Finance Agency regulations provide that the paying FHLBank is entitled to reimbursement from the noncomplying FHLBank for any payments made on its behalf and any other associated costs (including interest to be determined by the Finance Agency). However, if the Finance Agency determines that the noncomplying FHLBank is unable to satisfy its repayment obligations, the Finance Agency may allocate the outstanding liabilities of the noncomplying FHLBank among the remaining FHLBanks on a pro rata basis in proportion to each FHLBank's participation in all consolidated obligations outstanding. The Finance Agency reserves the right to allocate the outstanding liabilities for the consolidated obligations among the FHLBanks in any other manner it may determine to ensure that the FHLBanks operate in a safe and sound manner. The par value of the FHLBanks' outstanding consolidated obligations, including consolidated obligations issued by the Bank, was $989,311 and $905,202 as of December 31, 2016 and 2015 , respectively. Regulations require each FHLBank to maintain, in the aggregate, unpledged qualifying assets equal to that FHLBank's consolidated obligations outstanding. Qualifying assets are defined as cash; secured advances; obligations of or fully guaranteed by the United States; mortgages guaranteed or insured by the United States or its agencies; participations, mortgages, or other securities of or issued by certain government-sponsored enterprises; and such securities as fiduciary and trust funds may invest in under the laws of the state in which the FHLBank is located. The Bank held unpledged qualifying assets of $138,097 and $141,848 as of December 31, 2016 and 2015 , respectively, compared to a book value of $129,939 and $133,387 in consolidated obligations as of December 31, 2016 and 2015 , respectively. General Terms. Consolidated obligations are issued with either fixed- or variable-rate coupon payment terms that use a variety of indices for interest-rate resets including the London Interbank Offered Rate (LIBOR), Constant Maturity Treasury, and others. To meet the expected specific needs of certain investors in consolidated obligations, both fixed- and variable-rate consolidated obligation bonds may contain certain features, which may result in complex coupon payment terms and call options. When such consolidated obligations are issued, the Bank generally enters into derivatives containing offsetting features that, in effect, convert the terms of the consolidated obligation bond to those of a simple variable-rate consolidated obligation bond. These consolidated obligations, beyond having fixed-rate or simple variable-rate coupon payment terms, may also have the following broad term regarding either principal repayment or coupon payment terms: Optional Principal Redemption Consolidated Obligation Bonds (callable bonds) that the Bank may redeem in whole or in part at its discretion on predetermined call dates according to the terms of the consolidated obligation bond offerings. With respect to interest payments, consolidated obligation bonds may have the following terms: Step-up/down Consolidated Obligation Bonds have coupons at fixed rates for specified intervals over the lives of the consolidated obligation bonds. At the end of each specified interval, the coupon rate increases (or decreases) or steps up (or steps down). These consolidated obligation bond issues generally contain call provisions enabling the bonds to be called at the Bank's discretion; and Variable-rate Capped Floater Consolidated Obligation Bonds pay interest at variable rates subject to an interest-rate ceiling. Interest-rate Payment Terms. The following table presents the Bank’s consolidated obligation bonds by interest-rate payment type. As of December 31, 2016 2015 Fixed-rate $ 23,674 $ 40,512 Step up/down 2,534 4,239 Simple variable-rate 62,408 19,022 Total par value $ 88,616 $ 63,773 Redemption Terms. The following table presents the Bank’s participation in consolidated obligation bonds outstanding by year of contractual maturity. As of December 31, 2016 2015 Amount Weighted- average Interest Rate (%) Amount Weighted- average Interest Rate (%) Due in one year or less $ 65,378 0.91 $ 32,559 0.74 Due after one year through two years 17,065 1.05 17,132 1.41 Due after two years through three years 1,849 1.67 5,959 1.63 Due after three years through four years 1,482 1.68 2,124 1.67 Due after four years through five years 1,117 1.58 1,975 1.72 Due after five years 1,725 2.37 4,024 2.18 Total par value 88,616 1.00 63,773 1.16 Premiums 24 36 Discounts (12 ) (20 ) Hedging adjustments 19 164 Total $ 88,647 $ 63,953 The following table presents the Bank’s consolidated obligation bonds outstanding by call feature. As of December 31, 2016 2015 Noncallable $ 83,487 $ 53,432 Callable 5,129 10,341 Total par value $ 88,616 $ 63,773 The following table presents the Bank’s consolidated obligation bonds outstanding, by year of contractual maturity, or for callable consolidated obligation bonds, by next call date. As of December 31, 2016 2015 Due or callable in one year or less $ 70,232 $ 41,410 Due or callable after one year through two years 15,250 16,277 Due or callable after two years through three years 1,399 3,461 Due or callable after three years through four years 1,103 1,055 Due or callable after four years through five years 162 1,023 Due or callable after five years 470 547 Total par value $ 88,616 $ 63,773 Consolidated Obligation Discount Notes. Consolidated obligation discount notes are issued to raise short-term funds and have original contractual maturities of up to one year. These consolidated obligation discount notes are issued at less than their face amounts and redeemed at par value when they mature. The following table presents the Bank's participation in consolidated obligation discount notes. Book Value Par Value Weighted-average Interest Rate (%) As of December 31, 2016 $ 41,292 $ 41,334 0.48 As of December 31, 2015 $ 69,434 $ 69,481 0.27 |
Afforable Housing Program
Afforable Housing Program | 12 Months Ended |
Dec. 31, 2016 | |
Assessments [Abstract] | |
Affordable Housing Program | Affordable Housing Program Affordable Housing Program . Annually, each FHLBank must set aside 10 percent of its income subject to assessment for the AHP, or such additional prorated sums as may be required so that the aggregate annual contribution of the FHLBanks is not less than $100 . For purposes of the AHP calculation, each FHLBank's income subject to assessment is defined as the individual FHLBank's net income before assessments, plus interest expense related to mandatorily redeemable capital stock. The Bank accrues this expense monthly based on its income subject to assessment. The Bank reduces the AHP liability as members use subsidies. If the Bank experienced a net loss during a quarter but had income subject to assessment in subsequent quarters, it would be required to contribute additional amounts to meet its calculated annual obligation based on the Bank's year-to-date income subject to assessment. If the Bank experienced a net loss for a full year, the Bank would have no obligation to the AHP for the year since each FHLBank's required annual AHP contribution is limited to its annual income subject to assessment. If the aggregate of 10 percent of income subject to assessment for all FHLBanks was less than $100 , each FHLBank would be required to contribute additional amounts so that the aggregate contribution of the FHLBanks equals the required $100 . Each FHLBanks' prorated contribution would be determined based on its income in relation to the income of all FHLBanks for the previous year. There was no shortfall in the years ended December 31, 2016 , 2015 , or 2014 . If an FHLBank finds that its required contributions are contributing to the financial instability of that FHLBank, it may apply to the Finance Agency for a temporary suspension of its contributions. No FHLBank made such an application in the years ended December 31, 2016 , 2015 , or 2014 . The Bank had outstanding principal in AHP-related advances of $27 and $30 as of December 31, 2016 and 2015 , respectively. The following table presents a rollforward of the Bank's AHP liability. For the Years Ended December 31, 2016 2015 2014 Balance, beginning of year $ 63 $ 65 $ 74 AHP assessments 31 33 30 Subsidy usage, net (25 ) (35 ) (39 ) Balance, end of year $ 69 $ 63 $ 65 |
Capital and Mandatorily Redeema
Capital and Mandatorily Redeemable Capital Stock | 12 Months Ended |
Dec. 31, 2016 | |
Capital [Abstract] | |
Capital and Mandatorily Redeemable Capital Stock | Capital and Mandatorily Redeemable Capital Stock Capital. The Bank is subject to the following three regulatory capital requirements under its capital plan, the FHLBank Act, and Finance Agency regulations. Risk-Based Capital . The Bank must maintain, at all times, permanent capital in an amount at least equal to the sum of its credit risk capital requirement, its market risk capital requirement, and its operations risk capital requirement, calculated in accordance with the rules and regulations of the Finance Agency. Permanent capital is defined by the FHLBank Act and regulations as the sum of retained earnings and the amounts paid-in for Class B stock. Only permanent capital satisfies the risk-based capital requirement. The Finance Agency may require the Bank to maintain a greater amount of permanent capital than is required by the risk-based capital requirement as defined. Total Regulatory Capital . The FHLBank Act requires the Bank to maintain total regulatory capital in an amount equal to at least four percent of total assets at all times. Total regulatory capital is defined as the sum of permanent capital, the amount paid-in for Class A stock (if any), the amount of the Bank's general allowance for losses (if any), and the amount of any other instruments identified in the capital plan and approved by the Finance Agency. The Bank has not issued any Class A stock, has no general allowance for losses, and has no other instruments identified in the capital plan and approved by the Finance Agency; therefore, the Bank's total regulatory capital is equal to its permanent capital as of December 31, 2016 . Leverage Capital . The FHLBank Act requires the Bank to maintain leverage capital in an amount equal to at least five percent of total assets at all times. Leverage capital is defined as the sum of permanent capital weighted 1.5 times and all other capital weighted 1.0 times. Although mandatorily redeemable capital stock is not included in capital for financial reporting purposes, such outstanding stock is considered capital for determining compliance with these regulatory capital requirements. The following table presents the Bank's compliance with the Finance Agency's regulatory capital rules and requirements. As of December 31, 2016 2015 Required Actual Required Actual Risk-based capital $ 1,701 $ 6,848 $ 1,621 $ 6,956 Total regulatory capital ratio 4.00 % 4.94 % 4.00 % 4.89 % Total regulatory capital (1) $ 5,547 $ 6,848 $ 5,690 $ 6,956 Leverage capital ratio 5.00 % 7.41 % 5.00 % 7.33 % Leverage capital $ 6,934 $ 10,273 $ 7,113 $ 10,433 ___________ (1) Total regulatory capital does not include accumulated other comprehensive income but does include mandatorily redeemable capital stock. The Bank offers two subclasses of Class B stock, each of which is issued, redeemed, and repurchased at a par value of $100 per share. Member shares cannot be purchased or sold except between the Bank and its members at $100 per share par value. Shares of subclass B1 capital stock are issued to meet the membership stock requirement under the capital plan and shares of subclass B2 capital stock are issued to meet the activity-based stock requirement under the capital plan. Activity-based stock held by a member is that amount of subclass B2 capital stock that the member is required to own for as long as certain transactions between the Bank and the member remain outstanding. The manner in which the activity-based stock requirement is determined under the capital plan is set forth below. The minimum stock requirement for each member is the sum of the membership stock requirement and the activity-based stock requirement. The capital plan permits the Bank's board of directors to set the membership and activity-based stock requirements within a range as set forth in the capital plan. As of December 31, 2016 , the membership stock requirement was an amount of subclass B1 capital stock equal to 0.09 percent ( nine basis points) of the member's total assets as of December 31, 2015 , subject to a cap of $15 . The membership stock requirement is recalculated using the member's total assets as of the preceding calendar year-end at least annually by March 31. As of December 31, 2016 , the activity-based stock requirement was an amount of subclass B2 capital stock equal to the sum of the following: • 4.25 percent of the member's outstanding par value of advances and • 8.00 percent of targeted debt/equity investments (such as multifamily residential mortgage loan assets) sold by the member to the Bank on or after December 17, 2004. The activity-based stock requirement also may include a percentage of any outstanding balance of acquired member assets (such as residential mortgage loan assets) although this percentage was set at zero as of December 31, 2016 and 2015 . The FHLBank Act and Finance Agency regulations require that the minimum stock requirement for members must be sufficient to enable the Bank to meet its minimum regulatory capital requirement. Therefore, from time to time, the Bank's board of directors may adjust the membership stock requirement and the activity-based stock requirement within specified ranges set forth in the capital plan. Any adjustment outside the ranges would require an amendment to the capital plan and Finance Agency approval. Each member is required to comply promptly with any adjustment to the minimum stock requirement. The FHLBank Act provides that the Bank may repurchase, at its sole discretion, any member's capital stock investment that exceeds the required minimum amount (excess capital stock). Under certain circumstances, Finance Agency rules limit the ability of the Bank to create member excess stock. The Bank may not pay dividends in the form of capital stock or issue excess capital stock to any member if the Bank's excess capital stock exceeds one percent of its total assets or if the issuance of excess capital stock would cause the Bank's excess capital stock to exceed one percent of its total assets. As of December 31, 2016 and 2015 , the Bank's excess capital stock did not exceed one percent of its total assets. A member may redeem its excess Class B capital stock at par value payable in cash five years after providing written notice to the Bank. The Bank, at its option, may repurchase a member's excess capital stock before expiration of the five -year notice period. The Bank's authority to redeem or repurchase capital stock is subject to a number of limitations. Under Finance Agency rules, the Bank's board of directors may, but is not required to, declare and pay non-cumulative dividends in cash or capital stock from unrestricted retained earnings and current earnings. All shares of capital stock share in any dividend without preference. Dividends are computed on the average daily balance of capital stock outstanding during the relevant time period. The Bank may not pay a dividend if the Bank is not in compliance with any of its regulatory capital requirements or if a payment would cause the Bank to fail to meet any of its regulatory capital requirements. The concentration of the Bank's regulatory capital stock to its 10 largest shareholders was $3,018 , or 60.9 percent, and $3,373 , or 65.9 percent, as of December 31, 2016 and 2015 , respectively. The following table presents the activity in mandatorily redeemable capital stock. For the Years Ended December 31, 2016 2015 2014 Balance, beginning of year $ 14 $ 19 $ 24 Net reclassification from capital during the year 7 21 7 Repurchase/redemption of mandatorily redeemable capital stock (20 ) (26 ) (12 ) Balance, end of year $ 1 $ 14 $ 19 As of December 31, 2016 , the Bank's outstanding mandatorily redeemable capital stock consisted of B1 membership stock and B2 activity-based stock. The Bank is not required to redeem activity-based stock until the later of the expiration of the redemption period, which is five years after notification is received, or until the activity no longer remains outstanding. The following table presents the amount of mandatorily redeemable capital stock by year of redemption. The year of redemption in the table is the end of the five -year redemption period, or with respect to activity-based stock, the later of the expiration of the five -year redemption period or the activity’s maturity date. As of December 31, 2016 2015 Due in one year or less $ — $ 7 Due after one year through two years — 1 Due after three years through four years 1 — Due after four years through five years — 6 Total $ 1 $ 14 A member may cancel or revoke its written notice of redemption or its notice of withdrawal from membership at any time prior to the end of the five -year redemption period, subject to payment of a cancellation fee as set forth in the capital plan. If a member cancels its written notice of redemption or notice of withdrawal, the Bank will reclassify mandatorily redeemable capital stock from a liability to capital. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income The following table presents the components comprising accumulated other comprehensive income. Pension and Postretirement Benefits Noncredit Portion of Other-than- temporary Impairment Losses on Available-for- sale Securities Total Accumulated Other Comprehensive Income Balance, December 31, 2013 $ (13 ) $ 125 $ 112 Other comprehensive income before reclassifications: Net change in fair value — (10 ) (10 ) Actuarial loss (11 ) — (11 ) Reclassification from accumulated other comprehensive income to net income: Noncredit other-than-temporary impairment losses — 3 3 Amortization of pension and postretirement (1) 1 — 1 Net current period other comprehensive loss (10 ) (7 ) (17 ) Balance, December 31, 2014 (23 ) 118 95 Other comprehensive income before reclassifications: Net change in fair value — (28 ) (28 ) Actuarial gain 1 — 1 Reclassification from accumulated other comprehensive income to net income: Noncredit other-than-temporary impairment losses — 5 5 Amortization of pension and postretirement (1) 2 — 2 Net current period other comprehensive income (loss) 3 (23 ) (20 ) Balance, December 31, 2015 (20 ) 95 75 Other comprehensive income before reclassifications: Noncredit other-than-temporary impairment losses — (1 ) (1 ) Net change in fair value — 27 27 Actuarial loss (1 ) — (1 ) Reclassification from accumulated other comprehensive income to net income: Noncredit other-than-temporary impairment losses — 3 3 Amortization of pension and postretirement (1) 1 — 1 Net current period other comprehensive income — 29 29 Balance, December 31, 2016 $ (20 ) $ 124 $ 104 ____________ (1) Included in Compensation and benefits on the Statements of Income. |
Pension and Post Retirement Ben
Pension and Post Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Post Retirement Benefit Plans | Pension and Postretirement Benefit Plans The Bank participates in the Pentegra Defined Benefit Plan for Financial Institutions (Pentegra Plan), a tax-qualified defined-benefit pension plan. The Pentegra 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 Plan. Under the Pentegra Plan, contributions made by a participating employer may be used to provide benefits to employees of other participating employers because assets contributed by an employer are not segregated in a separate account or restricted to provide benefits only to employees of that employer. Also, in the event a participating employer is unable to meet its contribution requirements, the required contributions for the other participating employers could increase proportionately. The Pentegra Plan covers substantially all officers and employees of the Bank hired before March 1, 2011. The Pentegra Plan operates on a fiscal year from July 1 through June 30. The Pentegra Plan files one Form 5500 on behalf of all employers who participate in the plan. The Employer Identification Number is 13-5645888, and the three-digit plan number is 333 . There are no collective bargaining agreements in place at the Bank. The Pentegra Plan's annual valuation process includes separately calculating the plan's funded status and the funded status of each participating employer. The funded status is defined as the fair 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 Plan accepts contributions for the prior plan year up to eight and a half months after the asset valuation date. As a result, the fair 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 Plan is for the year ended June 30, 2015 . The contributions made by the Bank during 2016 and 2015 were more than five percent of the total contributions for each of the Pentegra Plan years ended June 30, 2015 and 2014 . The following table presents information on the net pension costs and funded status of the Pentegra Plan. 2016 2015 2014 Net pension cost charged to compensation and benefit expense for the year ended December 31 $ 12 $ 11 $ 10 Pentegra Plan funded status as of July 1 (1) 104.12 % 107.01 % 111.44 % Bank's funded status as of the plan year end 105.51 % 108.82 % 114.16 % ____________ (1) The Pentegra Plan's funded status as of July 1 is preliminary and may increase because the plan's participants are permitted to make contributions through March 15 of the following year (i.e. through March 15, 2017 for the plan year ended June 30, 2016 and through March 15, 2016 for the plan year ended June 30, 2015 ). Contributions made before the March 15th deadline may be credited to the plan for the plan year ended June 30 of the previous year and included in the final valuation as of July 1 of the year the plan ended. The final funded status as of July 1 will not be available until the Form 5500 for the plan year July 1 through June 30 is filed. Form 5500 is due to be filed no later than April 2018 for the plan year July 1, 2016 through June 30, 2017 and April 2017 for the plan year July 1, 2015 through June 2016 . Form 5500 was filed in April 2016 for the plan year July 1, 2014 through June 30, 2015 . The Bank also participates in a qualified defined contribution plan. The Bank's contribution to this plan is equal to a percentage of voluntary contributions, subject to certain limitations, plus contributions for all employees hired on or after March 1, 2011. The Bank contributed $2 to this plan during each of the years ended December 31, 2016 , 2015 , and 2014 . The Bank offers a supplemental nonqualified defined contribution retirement plan to eligible executives. The Bank's contribution to this plan is equal to a percentage of voluntary contributions. The Bank contributed less than $1 to this plan during each of the years ended December 31, 2016 , 2015 , and 2014 . In addition, the Bank maintains a nonqualified deferred compensation plan, available to Bank directors and officers at the senior vice president level and above, which is, in substance, an unfunded supplemental savings plan. The plan's liability consists of the accumulated compensation deferrals and accrued earnings on those deferrals. The Bank's minimum obligation from this plan was $3 and $2 as of December 31, 2016 and 2015 , respectively. Operating expense includes deferred compensation and accrued earnings of $1 during each of the years ended December 31, 2016 and 2015 , and less than $1 during the year ended December 31, 2014 . The Bank offers a supplemental nonqualified defined benefit pension plan to eligible executives and a postretirement health benefit plan to eligible retirees. There are no funded plan assets that have been designated to provide supplemental retirement plan or postretirement health benefits. Amounts recognized in other liabilities (funded status) on the Statements of Condition for the Bank’s supplemental defined benefit pension plan and postretirement health benefit plan were $56 and $51 as of December 31, 2016 and 2015 , respectively. The net periodic benefit costs recognized in “Compensation and benefits” on the Statements of Income for the Bank’s supplemental defined benefit pension plan and postretirement health benefit plan were $6 for each of the years ended December 31, 2016 and 2015 , and $4 for the year ended December 31, 2014 . The amount recognized in other comprehensive income (loss) related to pension and postretirement benefit plans on the Statements of Comprehensive Income for the Bank’s supplemental defined benefit pension plan and postretirement health benefit plan was income of less than $1 and $3 for the years ended December 31, 2016 and 2015 , respectively, and a loss of $10 for the year ended December 31, 2014 . The financial amounts related to the Bank's supplemental nonqualified defined benefit pension plan and postretirement health benefit plan are not material to the Bank's financial condition or results of operations. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities Nature of Business Activity The Bank is exposed to interest-rate risk primarily from the effect of interest rate changes on its interest-earning assets and on its funding sources that finance these assets. To mitigate the risk of loss, the Bank has established policies and procedures, which include guidelines on the amount of exposure to interest rate changes that it is willing to accept. In addition, the Bank monitors the risk to its interest income, net interest margin, and average maturity of its interest-earning assets and funding sources. The goal of the Bank’s interest-rate risk management strategies is not to eliminate interest-rate risk, but to manage it within appropriate limits. The Bank enters into derivatives to manage the interest-rate risk exposure that is inherent in its otherwise unhedged assets and funding sources, to achieve the Bank's risk management objectives, and to act as an intermediary between its members and counterparties. Finance Agency regulations and the Bank's risk management policy prohibit the trading or speculative use of these derivative instruments and limit credit risk arising from these instruments. The use of derivatives is an integral part of the Bank's financial management strategy. The most common ways in which the Bank uses derivatives are to: • 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 bond used to fund the advance) by converting both fixed-rate instruments to a variable rate using interest-rate swaps; • reduce funding costs by combining a derivative with a consolidated obligation because the cost of a combined funding structure can be lower than the cost of a comparable consolidated obligation bond; • reduce the interest-rate sensitivity and repricing gaps of assets and liabilities; • mitigate the adverse earnings effects from the shortening or lengthening of certain assets (e.g., mortgage assets); • protect the value of existing asset or liability positions; • manage embedded options in assets and liabilities; and • achieve overall asset/liability management objectives. Application of Derivatives General. The Bank designates derivative instruments in the following three ways: (1) as a fair value hedge of an underlying financial instrument or a firm commitment; (2) as an intermediary transaction; or (3) as a non-qualifying hedge for purposes of asset or liability management. The Bank reevaluates its hedging strategies from time to time and may change the hedging techniques it uses or adopt new strategies. The Bank transacts most of its derivatives with large banks and major broker-dealers. Some of these banks and broker-dealers or their affiliates buy, sell, and distribute consolidated obligations. The Bank's over-the-counter derivative transactions may either be (1) uncleared derivatives, which are executed bilaterally with a counterparty; or (2) cleared derivatives, which are cleared through a Futures Commission Merchant (clearing agent) with a Derivative Clearing Organization (Clearinghouse). Once a derivative transaction has been accepted for clearing by a Clearinghouse, the derivative transaction is novated, and the executing counterparty is replaced with the Clearinghouse as the counterparty. The Bank is not a derivative dealer and does not trade derivatives for short-term profit. The Bank uses derivatives when they are considered to be the most cost-effective alternative to achieve the Bank's long-term financial and risk management objectives. Accordingly, the Bank may enter into derivatives that do not qualify for hedge accounting (non-qualifying hedges). Types of Derivatives The Bank may use the following derivatives to reduce funding costs and to manage its exposure to interest-rate risks inherent in the normal course of business. 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 paid 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 rate for the same period of time. The variable rate received or paid by the Bank in most derivative transactions agreements is LIBOR. Swaptions. A swaption is an option on a swap that gives the buyer the right to enter into a specified interest-rate swap at a certain time in the future. When used as a hedge, a swaption can protect the Bank against future interest rate changes when it is planning to lend or borrow funds in the future. The Bank may enter into both payer swaptions and receiver swaptions. A payer swaption is the option to make fixed interest payments at a later date, and a receiver swaption is the option to receive fixed interest payments at a later date. Interest-Rate Cap and Floor Agreements. In an interest-rate cap agreement, a cash flow is generated if the price or rate of an underlying variable rises above a certain threshold (or cap) price. In an interest-rate floor agreement, a cash flow is generated if the price or rate of an underlying variable falls below a certain threshold (or floor) price. Caps may be used in conjunction with liabilities, and floors may be used in conjunction with assets. Caps and floors are designed to protect against the interest rate on a variable-rate asset or liability rising above or falling below a certain level. Types of Hedged Items At inception, the Bank documents all relationships between derivatives designated as hedging instruments and hedged items, its risk management objectives and strategies for undertaking various hedge transactions, and its method of assessing effectiveness. This process includes linking all derivatives that are designated as fair value hedges to (1) assets and liabilities on the Statements of Condition; or (2) firm commitments. The Bank also formally assesses (both at the hedge's inception and at least quarterly on an ongoing basis) whether the derivatives that it uses in hedging relationships have been 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 effective in future periods. The Bank uses regression analyses to assess the effectiveness of its hedges. Consolidated Obligations . While consolidated obligations are the joint and several obligations of the FHLBanks, each FHLBank has consolidated obligations for which it is the primary obligor. The Bank enters into derivatives to hedge the interest-rate risk associated with its specific debt issuances in conjunction with the associated interest-rate risk on advances. The Bank 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, in a typical transaction, fixed-rate consolidated obligations are issued for the Bank, and the Bank simultaneously enters into a matching derivative in which the counterparty pays fixed cash flows to the Bank designed to mirror cash outflows that the Bank pays on the consolidated obligation in timing and amount. The Bank pays a variable cash flow that closely matches the interest payments it receives on short-term or variable-rate advances (typically one- or three-month LIBOR). These transactions are typically treated as fair-value hedges. This intermediation between the capital and swap markets permits the Bank to raise funds at lower costs than otherwise would be available through the issuance of simple fixed-rate consolidated obligations in the capital markets. Advances . The Bank offers a variety of advance structures to meet members' funding needs. These advances may have maturities of up to 30 years with variable or fixed rates and may include early termination features or options. The Bank may use derivatives to adjust the repricing and/or options characteristics of advances in order to more closely match the characteristics of the Bank's funding liabilities. In general, whenever a member executes a fixed- or a variable-rate advance with embedded options, the Bank simultaneously will execute a derivative with terms that offset the terms and embedded options in the advance. For example, the Bank may hedge a fixed-rate advance with an interest-rate swap in which the Bank pays a fixed-rate coupon and receives a variable-rate coupon, effectively converting the fixed-rate advance to a variable-rate advance. This type of hedge is typically treated as a fair-value hedge. Mortgage Assets. The Bank has invested in mortgage assets. The prepayment options embedded in mortgage assets may shorten or lengthen the expected repayment of these investments, depending on changes in estimated prepayment speeds. The Bank manages the interest-rate and prepayment risk associated with mortgages through a combination of debt issuance and derivatives. The Bank issues both callable and non-callable debt to achieve cash flow patterns and liability durations similar to those expected on the mortgage loans. The Bank may use derivatives to match the expected prepayment characteristics of the mortgages. Options (interest-rate caps, interest-rate floors and/or options) also may be used to hedge prepayment risk on the mortgages. Many options are not identified to specific mortgages and therefore, do not receive fair-value or cash-flow hedge accounting treatment. The Bank also may purchase interest-rate caps and floors, swaptions, callable swaps, calls, and puts to minimize the prepayment risk embedded in the mortgage loans. Although these derivatives are valid non-qualifying hedges against the prepayment risk of the loans, they do not receive either fair-value or cash-flow hedge accounting. These derivatives are marked-to-market through earnings. Firm Commitments . Certain mortgage purchase commitments are considered derivatives. Mortgage purchase commitments are recorded on the balance sheet at fair value, with changes in fair value recognized in current-period earnings. When the mortgage purchase commitment derivative settles, the current fair value of the commitment is included with the basis of the mortgage loan and amortized accordingly. The Bank also may enter into a fair value hedge of a firm commitment for a forward starting advance through the use of an interest-rate swap. In this case, the swap functions as the hedging instrument for both the firm commitment and the subsequent advance. The basis movement associated with the firm commitment is recorded as a basis adjustment of the advance at the time the commitment is terminated and the advance is issued. The basis adjustment is then amortized into interest income over the life of the advance using the level-yield method. Investments . The Bank invests in MBS, U.S. agency obligations, certificates of deposit, and the taxable portion of state or local housing finance agency obligations. The interest-rate and prepayment risks associated with these investment securities are managed through a combination of debt issuance and derivatives. The Bank may manage the prepayment and interest-rate risks by funding investment securities with consolidated obligations that have call features, by hedging the prepayment risk with caps or floors, or by adjusting the duration of the securities by using derivatives to modify the cash flows of the securities. Investment securities may be classified as trading, available-for-sale, or held-to-maturity. The Bank also may manage the risk arising from changing market prices and volatility of investment securities classified as trading by entering into derivatives (non-qualifying hedges) that offset the changes in fair value of these securities. Financial Statement Effect and Additional Financial Information Derivative Notional Amounts. The notional amount of derivatives serves as a factor in determining periodic interest payments or cash flows received and paid. However, the notional amount of derivatives represents neither the actual amounts exchanged nor the overall exposure of the Bank to credit and market risk; the overall risk is much smaller. The risks of derivatives can be measured meaningfully on a portfolio basis that takes into account the counterparties, the types of derivatives, the items being hedged, and any offsets between the derivatives and the items being hedged. The following table presents the fair value of derivative instruments, including the effect of netting adjustments and cash collateral. For purposes of this disclosure, the derivative values include the fair value of derivatives and the related accrued interest. As of December 31, 2016 2015 Notional Amount of Derivatives Derivative Assets Derivative Liabilities Notional Amount of Derivatives Derivative Assets Derivative Liabilities Derivatives in hedging relationships: Interest-rate swaps $ 65,027 $ 256 $ 1,029 $ 80,290 $ 312 $ 1,467 Derivatives not designated as hedging instruments: Interest-rate swaps 1,158 9 31 3,008 10 74 Interest-rate caps or floors 15,000 17 13 16,500 15 10 Mortgage delivery commitments 12 — — — — — Total derivatives not designated as hedging instruments 16,170 26 44 19,508 25 84 Total derivatives before netting and collateral adjustments $ 81,197 282 1,073 $ 99,798 337 1,551 Netting adjustments and cash collateral (1) 73 (966 ) (161 ) (1,427 ) Derivative assets and derivative liabilities $ 355 $ 107 $ 176 $ 124 ___________ (1) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty. Cash collateral posted and related accrued interest was $1,061 and $1,293 as of December 31, 2016 and 2015 , respectively. Cash collateral received and related accrued interest was $22 and $27 as of December 31, 2016 and 2015 , respectively. The following table presents the components of net gains on derivatives and hedging activities as presented on the Statements of Income. For the Years Ended December 31, 2016 2015 2014 Derivatives and hedged items in fair value hedging relationships: Interest-rate swaps $ 120 $ 269 $ 147 Derivatives not designated as hedging instruments: Interest-rate swaps 30 53 57 Interest-rate caps or floors (1 ) (2 ) (14 ) Net interest settlements (30 ) (59 ) (70 ) Total net losses related to derivatives not designated as hedging instruments (1 ) (8 ) (27 ) Net gains on derivatives and hedging activities $ 119 $ 261 $ 120 The following tables present, by type of hedged item, the gains (losses) on derivatives and the related hedged items in fair value hedging relationships and the impact of those derivatives on the Bank’s net interest income. For the Year Ended December 31, 2016 Hedged Item Type Gains (Losses) on Derivative Gains (Losses) on Hedged Item Net Fair Value Hedge Ineffectiveness Effect of Derivatives on Net Interest Income (1) Advances $ 524 $ (393 ) $ 131 $ (529 ) Consolidated obligations: Bonds (154 ) 146 (8 ) 230 Discount notes 2 (5 ) (3 ) (3 ) Total $ 372 $ (252 ) $ 120 $ (302 ) ____________ (1) The net interest on derivatives in fair value hedge relationships is presented in the interest income or expense line item of the respective hedged item. For the Year Ended December 31, 2015 Hedged Item Type Gains (Losses) on Derivative Gains (Losses) on Hedged Item Net Fair Value Hedge Ineffectiveness Effect of Derivatives on Net Interest Income (1) Advances $ 448 $ (169 ) $ 279 $ (713 ) Consolidated obligations: Bonds (93 ) 81 (12 ) 469 Discount notes (6 ) 8 2 9 Total $ 349 $ (80 ) $ 269 $ (235 ) ____________ (1) The net interest on derivatives in fair value hedge relationships is presented in the interest income or expense line item of the respective hedged item. For the Year Ended December 31, 2014 Hedged Item Type Gains (Losses) on Derivative Gains (Losses) on Hedged Item Net Fair Value Hedge Ineffectiveness Effect of Derivatives on Net Interest Income (1) Advances $ (152 ) $ 297 $ 145 $ (875 ) Consolidated obligation bonds 135 (133 ) 2 497 Total $ (17 ) $ 164 $ 147 $ (378 ) ____________ (1) The net interest on derivatives in fair value hedge relationships is presented in the interest income or expense line item of the respective hedged item. Managing Credit Risk on Derivatives The Bank is subject to credit risk to its derivative transactions due to the risk of nonperformance by counterparties and manages this risk through credit analysis, collateral requirements, and adherence to the requirements set forth in its policies, U.S. Commodity Futures Trading Commission regulations, and Finance Agency regulations. For uncleared derivatives, the degree of credit risk depends on the extent to which master netting arrangements are included in such contracts to mitigate the risk. The Bank requires collateral agreements with collateral delivery thresholds on all uncleared derivatives. Additionally, collateral related to derivatives with member institutions includes collateral assigned to the Bank, as evidenced by a written security agreement, and held by the member institution for the benefit of the Bank. For cleared derivatives, the Clearinghouse is the Bank's counterparty. The Clearinghouse notifies the clearing agent of the required initial and variation margin, and the clearing agent notifies the Bank. Because the Bank is required to post initial and variation margin through the clearing agent to the Clearinghouse, it exposes the Bank to institutional credit risk if the clearing agent or the Clearinghouse fails to meet its obligations. The use of cleared derivatives is intended to mitigate credit risk exposure because a central counterparty is substituted for individual counterparties, and collateral is posted daily through a clearing agent for changes in the fair value of cleared derivatives. The Bank has analyzed the enforceability of offsetting rights incorporated in its cleared derivative transactions and determined that the exercise of those offsetting rights by a non-defaulting party under these transactions should be upheld under applicable law upon an event of default, including a bankruptcy, insolvency, or similar proceeding involving the Clearinghouse or the Bank’s clearing agent, or both. Based on this analysis, the Bank presents a net derivative receivable or payable for all of its transactions through a particular clearing agent with a particular Clearinghouse. The Bank presents derivative instruments and the related cash collateral (including initial and variation margin) that is received or pledged, plus the associated accrued interest, on a net basis by clearing agent and/or by counterparty when it has met the netting requirements. The following table presents the fair value of derivative instruments meeting or not meeting netting requirements, including the related collateral received from or pledged to counterparties. As of December 31, 2016 2015 Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Gross recognized amount: Uncleared derivatives $ 70 $ 370 $ 260 $ 1,159 Cleared derivatives 212 703 77 392 Total gross recognized amount 282 1,073 337 1,551 Gross amounts of netting adjustments and cash collateral: Uncleared derivatives (69 ) (263 ) (258 ) (1,035 ) Cleared derivatives 142 (703 ) 97 (392 ) Total gross amounts of netting adjustments and cash collateral 73 (966 ) (161 ) (1,427 ) Derivative assets and derivative liabilities: Uncleared derivatives 1 107 2 124 Cleared derivatives 354 — 174 — Total derivative assets and total derivative liabilities 355 107 176 124 Non-cash collateral received or pledged not offset- cannot be sold or repledged: (1) Uncleared derivatives — — 2 — Net unsecured amounts: (2) Uncleared derivatives 1 107 — 124 Cleared derivatives 354 — 174 — Total net unsecured amount $ 355 $ 107 $ 174 $ 124 ____________ (1) Collateral held with respect to derivatives with member institutions, in which the Bank is acting as an intermediary, represents the amount of eligible collateral physically held by or on behalf of the Bank or collateral assigned to the Bank, as evidenced by a written security agreement, and held by the member institution for the benefit of the Bank. (2) The Bank had net credit exposure of $346 and $170 as of December 31, 2016 and 2015 , respectively, due to instances where the Bank’s pledged collateral to a counterparty exceeds the Bank’s net derivative liability position. Certain of the Bank’s uncleared derivative instruments contain provisions that require the Bank to post additional collateral with its counterparties if there is deterioration in the Bank’s credit rating. If the Bank’s credit rating is lowered by an NRSRO, the Bank may be required to deliver additional collateral on uncleared derivative instruments in net liability positions. The aggregate fair value of all uncleared derivative instruments with credit-risk-related contingent features that were in a net liability position (before cash collateral and related accrued interest) as of December 31, 2016 was $296 , for which the Bank has posted collateral with a fair value of $193 in the normal course of business. If the Bank’s credit ratings had been lowered from its current rating to the next lower rating that would have triggered additional collateral to be delivered, the Bank would have been required to deliver an additional $71 of collateral at fair value to its uncleared derivative counterparties as of December 31, 2016 . |
Estimated Fair Values
Estimated Fair Values | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Values | Estimated Fair Values The Bank records trading securities, available-for-sale securities, derivative assets and liabilities, and grantor trust assets (publicly-traded mutual funds) at estimated fair value on a recurring basis. Fair value is a market-based measurement and is defined 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. The transaction to sell the asset or transfer the liability is a hypothetical transaction at the measurement date, considered from the perspective of a market participant that holds the asset or owes the liability. In general, the transaction price will equal the exit price and therefore, represents the fair value of the asset or liability at initial recognition. In determining whether a transaction price represents the fair value of the asset or liability at initial recognition, each reporting entity is required to consider factors specific to the transaction, the asset or liability, the principal or most advantageous market for the asset or liability, and market participants with whom the entity would transact in the market. A fair value hierarchy is used to prioritize the inputs of valuation techniques used to measure fair value. The inputs are evaluated, and an overall level for the fair value measurement is determined. This overall level is an indication of how market-observable the fair value measurement is and defines the level of disclosure. In order to determine the fair value or the exit price, entities must determine the unit of account, highest and best use, principal market, and market participants. These determinations allow the reporting entity to define the inputs for fair value and level of hierarchy. Outlined below is the application of the “fair value hierarchy” to the Bank's financial assets and liabilities that are carried at fair value or disclosed in the notes to the financial statements. Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. 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. The Bank carried grantor trust assets at fair value hierarchy Level 1 as of December 31, 2016 and 2015 . Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. The Bank carried trading securities and derivatives at fair value hierarchy Level 2 as of December 31, 2016 and 2015 . Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs are supported by limited market activity and reflect the entity's own assumptions. The Bank carried available-for-sale securities at fair value hierarchy Level 3 as of December 31, 2016 and 2015 . The Bank utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. For financial instruments carried at fair value, the Bank reviews the fair value hierarchy classification of financial assets and liabilities on a quarterly basis. Changes in the observability of the valuation attributes may result in a reclassification of certain financial assets or liabilities within the fair value hierarchy. Such reclassifications are reported as transfers in/out at fair value as of the beginning of the quarter in which the changes occur. There were no such transfers during the periods presented. Estimated Fair Value Measurements on a Recurring Basis. The following tables present, for each fair value hierarchy level, the Bank’s financial assets and liabilities that are measured at fair value on a recurring basis on its Statements of Condition. As of December 31, 2016 Fair Value Measurements Using Netting Adjustment (1) Level 1 Level 2 Level 3 Total Assets Trading securities: Government-sponsored enterprises debt obligations $ — $ 261 $ — $ — $ 261 State or local housing agency debt obligations — 1 — — 1 Total trading securities — 262 — — 262 Available-for-sale securities: Private-label residential MBS — — 1,345 — 1,345 Derivative assets: Interest-rate related — 282 — 73 355 Grantor trust (included in Other assets) 37 — — — 37 Total assets at fair value $ 37 $ 544 $ 1,345 $ 73 $ 1,999 Liabilities Derivative liabilities: Interest-rate related $ — $ 1,073 $ — $ (966 ) $ 107 Total liabilities at fair value $ — $ 1,073 $ — $ (966 ) $ 107 ____________ (1) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same clearing agents and/or counterparties. As of December 31, 2015 Fair Value Measurements Using Netting Adjustment (1) Level 1 Level 2 Level 3 Total Assets Trading securities: Government-sponsored enterprises debt obligations $ — $ 1,212 $ — $ — $ 1,212 Another FHLBank’s bond — 52 — — 52 State or local housing agency debt obligations — 1 — — 1 Total trading securities — 1,265 — — 1,265 Available-for-sale securities: Private-label residential MBS — — 1,662 — 1,662 Derivative assets: Interest-rate related — 337 — (161 ) 176 Grantor trust (included in Other assets) 31 — — — 31 Total assets at fair value $ 31 $ 1,602 $ 1,662 $ (161 ) $ 3,134 Liabilities Derivative liabilities: Interest-rate related $ — $ 1,551 $ — $ (1,427 ) $ 124 Total liabilities at fair value $ — $ 1,551 $ — $ (1,427 ) $ 124 ____________ (1) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same clearing agents and/or counterparties. The following table presents a reconciliation of available-for-sale securities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3). For the Years Ended December 31, 2016 2015 2014 Balance, beginning of year $ 1,662 $ 1,981 $ 2,299 Total (losses) gains realized and unrealized: (1) Included in net impairment losses recognized in earnings (3 ) (5 ) (3 ) Included in other comprehensive income 29 (23 ) (7 ) Accretion of credit losses in net interest income 53 42 34 Settlements (396 ) (333 ) (342 ) Balance, end of year $ 1,345 $ 1,662 $ 1,981 ____________ (1) Related to available-for-sale securities held at year end. Estimated Fair Value Measurements on a Nonrecurring Basis. The Bank periodically measures and recognizes certain assets at fair value on a nonrecurring basis in certain circumstances. Adjustments to fair value usually result from the application of lower of amortized cost or fair value accounting, or write-downs of individual assets due to impairment. The following table presents the fair value hierarchy and carrying value of all assets as of the last impairment date that were still held as of December 31, 2015 , for which a nonrecurring fair value adjustment was recorded during the period presented. The carrying value for each of the assets presented in the following table was less than $1 as of December 31, 2016. As of December 31, 2015 Fair Value Measurements Using Level 1 Level 2 Level 3 Total Mortgage loans held for portfolio $ — $ — $ 1 $ 1 Real estate owned (included in Other assets) — — 3 3 Total nonrecurring assets at fair value $ — $ — $ 4 $ 4 Described below are the Bank's fair value measurement methodologies for financial assets and liabilities measured or disclosed at fair value. Cash and Due from Banks. The estimated fair value approximates the recorded carrying value due to the short-term nature and negligible credit risk. Interest-bearing Deposits. The estimated fair value is determined by calculating the present value of the expected future cash flows from the deposits and reducing this amount for accrued interest receivable. The discount rates used in these calculations are the rates for deposits with similar terms and represents market observable rates. Securities purchased under agreements to resell. The estimated fair value is determined by calculating the present value of the expected future cash flows. The discount rates used in these calculations are the rates for securities with similar terms and represent market observable rates. Federal Funds Sold. The estimated fair values of overnight federal funds sold approximate the carrying values. The estimated fair values of term federal funds sold are determined by calculating the present value of the expected future cash flows. The discount rates used in these calculations are the rates for federal funds with similar terms and represent market observable rates. Investment Securities . The Bank obtains prices from four designated third-party pricing vendors, when available, to estimate the fair value of its investment securities. The pricing vendors use various proprietary models to price investment securities. The inputs to those models are derived from various sources including, but not limited to, the following: benchmark yields, reported trades, dealer estimates, issuer spreads, benchmark securities, bids, offers, and other market-related data. Since many investment securities do not trade on a daily basis, the pricing vendors use available information as applicable, such as benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing to determine the prices for individual securities. Each pricing vendor has an established challenge process in place for all investment securities valuations, which facilitates resolution of potentially erroneous prices identified by the Bank. The Bank periodically conducts reviews of the four pricing vendors to confirm and further augment its understanding of the vendors' pricing processes, methodologies, and control procedures for U.S. agency and private-label MBS. The Bank's valuation technique for estimating the fair value of its investment securities first requires the establishment of a “median” price for each security. All prices that are within a specified tolerance threshold of the median price are included in the “cluster” of prices that are averaged to compute a “default” price. All prices that are outside the threshold (“outliers”) are subject to further analysis (including, but not limited to, comparison to prices provided by an additional third-party valuation service, prices for similar securities, and/or non-binding dealer estimates) to determine if an outlier is a better estimate of fair value. If an outlier (or some other price identified in the analysis) is determined to be a better estimate of fair value, then the outlier (or the other price as appropriate) is used as the final price rather than the default price. Alternatively, if the analysis does not provide evidence that an outlier is more representative of the 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. Four vendor prices were received for a majority of the Bank's investment securities holdings and the final prices for those securities were computed by averaging the prices received as of December 31, 2016 and 2015 . Based on the Bank's review of the pricing methods and controls employed by the third-party pricing vendors and the relative lack of dispersion among the vendor prices (or the Bank's additional analysis in those instances in which there were outliers or significant yield variances), the Bank believes that its final prices are representative of the prices that would have been received if the assets had been sold at the measurement date (i.e., exit prices) and further that the fair value measurements are classified appropriately in the fair value hierarchy. Based on the lack of significant market activity for private-label MBS, the fair value measurement for those securities were classified as Level 3 within the fair value hierarchy as of December 31, 2016 and 2015 . Advances. The Bank determines the estimated fair values of advances by calculating the present value of expected future cash flows from the advances, excluding the amount of the accrued interest receivable. The discount rates used in these calculations are the equivalent to the replacement advance rates for advances with similar terms. The Bank calculates its replacement advance rates at a spread to its cost of funds. The Bank's cost of funds approximates the consolidated obligation curve (See "Consolidated Obligations" paragraph within this note for a discussion of the consolidated obligation curve). To estimate the fair values of advances with optionality, market-based expectations of future interest rate volatility implied from current market prices for similar options are also used. In accordance with the Finance Agency's advances regulations, advances with a maturity or repricing period greater than six months require a prepayment fee sufficient enough to make the Bank financially indifferent to the borrower's decision to prepay the advances, thereby removing prepayment risk from the fair value calculation. The Bank did not adjust the fair value measurement of advances for creditworthiness because advances were fully collateralized. Mortgage Loans Held for Portfolio. The estimated fair values for mortgage loans are determined based on quoted market prices of similar mortgage loans available in the pass-through securities market. These prices, however, can change rapidly based upon market conditions and are highly dependent upon the underlying prepayment assumptions. The estimated fair values of impaired mortgage loans are based on the current property value, as provided by a third party vendor, adjusted for estimated selling costs. Accrued Interest Receivable and Payable. The estimated fair value approximates the recorded carrying value due to the short-term nature and negligible credit risk. Derivative Assets and Liabilities. The Bank calculates the fair value of derivatives using a discounted cash flow analysis. The Bank’s discounted cash flow analysis utilizes market-observable inputs. Inputs by class of derivatives are as follows: • Interest-rate related - the Overnight Index Swap curve for collateralized derivatives; and • Mortgage delivery commitments - to be announced (TBA) securities prices adjusted for differences in coupon, average loan rate, and seasoning. Derivative instruments are transacted primarily in the institutional dealer market and priced with observable market assumptions at a mid-market valuation point. The Bank does not provide a credit valuation adjustment based on aggregate exposure by derivative counterparty when measuring the fair value of its derivatives. This is because the collateral provisions pertaining to the Bank's derivatives obviate the need to provide such a credit valuation adjustment. The fair values of the Bank's derivatives take into consideration the effects of legally enforceable master netting agreements, where applicable, that allow the Bank to settle positive and negative positions and offset cash collateral with the same counterparty on a net basis. The Bank and each uncleared derivative counterparty have collateral thresholds that take into account both the Bank's and the counterparty's credit ratings. As a result of these practices and agreements, the Bank has concluded that the impact of the credit differential between the Bank and its derivative counterparties was mitigated to an immaterial level, and no further adjustments were deemed necessary to the recorded fair values of derivative assets and liabilities on the Statements of Condition as of December 31, 2016 and 2015 . Grantor Trust Assets. Grantor trust assets, recorded in "Other assets" on the Statements of Condition, are carried at estimated fair value based on quoted market prices. Interest-bearing Deposits. The Bank determines estimated fair values of Bank deposits by calculating the present value of expected future cash flows from the deposits and reducing this amount for accrued interest payable. The discount rate used in these calculations is based on LIBOR. Consolidated Obligations. The Bank calculates the fair value of consolidated obligation bonds and discount notes by calculating the present value of future cash flows using cost of funds as the discount rate. The Office of Finance constructs an internal curve, referred to as the consolidated obligation curve, using the U.S. Treasury curve as a base curve that is then adjusted by adding indicative spreads obtained from market observable sources. These market indications are generally derived from pricing indications from dealers, historical pricing relationships, recent government-sponsored enterprise trades, and secondary market activity. To estimate the fair values of consolidated obligations with optionality, the Bank uses market based expectations of future interest rate volatility implied from current market prices for similar options. Mandatorily Redeemable Capital Stock. The fair value of mandatorily redeemable capital stock is par value and also includes estimated dividends earned at the time of reclassification from capital to liabilities, until such amount is paid. Capital stock can be acquired by members only at par value and redeemed by the Bank at par value. Capital stock is not traded and no market mechanism exists for the exchange of capital stock outside the cooperative structure. The following estimated fair value amounts have been determined by the Bank using available market information and the Bank’s best judgment of appropriate valuation methods. These estimates are based on pertinent information available to the Bank as of December 31, 2016 and 2015 . Although the Bank uses its best judgment in estimating the fair values of these financial instruments, there are inherent limitations in any estimation technique or valuation methodology. For example, because an active secondary market does not exist for a portion of the Bank’s financial instruments, in certain cases, fair values are not subject to precise quantification or verification and may change as economic and market factors and evaluation of those factors change. Therefore, these estimated fair values are not necessarily indicative of the amounts that would be realized in current market transactions, although they do reflect the Bank’s judgment of how a market participant would estimate the fair value. The fair value tables presented below do not represent an estimate of the overall fair value of the Bank as a going concern, which would take into account future business opportunities and the net profitability of assets versus liabilities. The following tables present the carrying values and estimated fair values of the Bank’s financial instruments. As of December 31, 2016 Estimated Fair Value Carrying Value Total Level 1 Level 2 Level 3 Netting Adjustment (1) Assets: Cash and due from banks $ 1,815 $ 1,815 $ 1,815 $ — $ — $ — Interest bearing-deposits 1,106 1,106 — 1,106 — — Securities purchased under agreements to resell 1,386 1,386 — 1,386 — — Federal funds sold 7,770 7,770 — 7,770 — — Trading securities 262 262 — 262 — — Available-for-sale securities 1,345 1,345 — — 1,345 — Held-to-maturity securities 24,641 24,633 — 23,843 790 — Advances 99,077 99,062 — 99,062 — — Mortgage loans held for portfolio, net 523 569 — 569 — — Accrued interest receivable 171 171 — 171 — — Derivative assets 355 355 — 282 — 73 Grantor trust assets (included in Other assets) 37 37 37 — — — Liabilities: Interest-bearing deposits 1,118 1,118 — 1,118 — — Consolidated obligations, net: Discount notes 41,292 41,293 — 41,293 — — Bonds 88,647 88,768 — 88,768 — — Mandatorily redeemable capital stock 1 1 1 — — — Accrued interest payable 128 128 — 128 — — Derivative liabilities 107 107 — 1,073 — (966 ) ____________ (1) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same clearing agents and/or counterparties. As of December 31, 2015 Estimated Fair Value Carrying Value Total Level 1 Level 2 Level 3 Netting Adjustment (1) Assets: Cash and due from banks $ 1,751 $ 1,751 $ 1,751 $ — $ — $ — Interest bearing-deposits 1,088 1,088 — 1,088 — — Securities purchased under agreements to resell 2,500 2,500 — 2,500 — — Federal funds sold 5,421 5,421 — 5,421 — — Trading securities 1,265 1,265 — 1,265 — — Available-for-sale securities 1,662 1,662 — — 1,662 — Held-to-maturity securities 23,239 23,263 — 22,179 1,084 — Advances 104,168 104,021 — 104,021 — — Mortgage loans held for portfolio, net 584 647 — 646 1 — Accrued interest receivable 171 171 — 171 — — Derivative assets 176 176 — 337 — (161 ) Grantor trust assets (included in Other assets) 31 31 31 — — — Liabilities: Interest-bearing deposits 1,084 1,084 — 1,084 — — Consolidated obligations, net: Discount notes 69,434 69,432 — 69,432 — — Bonds 63,953 63,940 — 63,940 — — Mandatorily redeemable capital stock 14 14 14 — — — Accrued interest payable 127 127 — 127 — — Derivative liabilities 124 124 — 1,551 — (1,427 ) ____________ (1) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same clearing agents and/or counterparties. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Consolidated obligations are backed only by the financial resources of the FHLBanks. At any time, the Finance Agency may require any FHLBank to make principal or interest payments due on any consolidated obligation, whether or not the primary obligor FHLBank has defaulted on the payment of that obligation. No FHLBank has ever had to assume or pay the consolidated obligation of another FHLBank. The par value of the other FHLBanks’ outstanding consolidated obligations for which the Bank is jointly and severally liable was $859,361 and $771,948 as of December 31, 2016 and 2015 , respectively, exclusive of the Bank’s own outstanding consolidated obligations. None of the other FHLBanks defaulted on their consolidated obligations, the Finance Agency was not required to allocate any obligation among the FHLBanks, and no amount of the joint and several obligation was fixed as of December 31, 2016 and 2015 . Accordingly, the Bank has not recognized a liability for its joint and several obligation related to the other FHLBanks' consolidated obligations as of December 31, 2016 and 2015 . The following table presents the Bank’s outstanding commitments, which represent off-balance sheet obligations. As of December 31, 2016 2015 Expire Within One Year Expire After One Year Total Expire Within One Year Expire After One Year Total Standby letters of credit (1) $ 10,934 $ 21,734 $ 32,668 $ 8,693 $ 23,823 $ 32,516 Commitments to fund additional advances 100 200 300 207 100 307 Unsettled consolidated obligation discount notes, at par (2) — — — 100 — 100 Unsettled consolidated obligation bonds, at par (2) 15 — 15 25 — 25 Commitments to purchase mortgage loans 12 — 12 — — — ____________ (1) "Expire Within One Year" includes 12 standby letters of credit for a total of $34 and 11 standby letters of credit for a total of $29 as of December 31, 2016 and 2015 , respectively, that have no stated maturity date and are subject to renewal on an annual basis. (2) Expiration is based on settlement period rather than underlying contractual maturity of consolidated obligations. The Bank issues standby letters of credit on behalf of its members for a fee. A standby letter of credit is a financing arrangement between the Bank and its member. If the Bank is required to make payment for a beneficiary's draw, the Bank in its discretion may convert such paid amount to an advance to the member and will require a corresponding activity-based capital stock purchase. The Bank monitors the creditworthiness of its standby letters of credit based on an evaluation of the member. In addition, standby letters of credit are fully collateralized from the time of issuance. The Bank has established parameters for the measurement, review, classification, and monitoring of credit risk related to these standby letters of credit that results in an internal credit rating, which focuses primarily on an institution’s overall financial health and takes into account the quality of assets, earnings, and capital position. In general, borrowers categorized into the highest risk rating category have more restrictions on the types of collateral that they may use to secure standby letters of credit, may be required to maintain higher collateral maintenance levels and deliver loan collateral, and may face more stringent collateral reporting requirements. The carrying value of the guarantees related to standby letters of credit is recorded in "Other liabilities" on the Statements of Condition and amounted to $135 and $136 as of December 31, 2016 and 2015 , respectively. Based on the Bank's credit analyses and collateral requirements, the Bank does not deem it necessary to record any additional liability on these commitments. The Bank may enter into commitments that unconditionally obligate it to purchase mortgage loans. Commitments are generally for periods not exceeding 91 days . Delivery commitments are recorded at fair value as derivative assets or derivative liabilities on the Statements of Condition. The Bank charged to operating expenses net rental costs of $2 for each of the years ended December 31, 2016 , 2015 , and 2014 . Lease agreements for Bank premises generally provide for increases in the basic rentals resulting from increases in property taxes and maintenance expenses. Such increases are not expected to have a material effect on the Bank's results of operations. The Bank is subject to legal proceedings arising in the normal course of business. After consultation with legal counsel, management does not anticipate, as of the date of the financial statements, that the ultimate liability, if any, arising out of these matters will have a material effect on the Bank’s financial condition or results of operations. |
Transactions with Shareholders
Transactions with Shareholders | 12 Months Ended |
Dec. 31, 2016 | |
Transactions With Shareholders [Abstract] | |
TransactionsWithShareholders | Transactions with Shareholders The Bank is a cooperative whose member institutions own substantially all of the capital stock of the Bank. Former members and certain non-members, which own the Bank's capital stock as a result of a merger or acquisition of a member of the Bank, own the remaining capital stock to support business transactions still carried on the Bank’s Statements of Condition. All holders of the Bank’s capital stock receive dividends on their investments, to the extent declared by the Bank’s board of directors. All advances are issued to members and eligible “housing associates” under the FHLBank Act, and mortgage loans held for portfolio are purchased from members. The Bank also maintains demand deposit accounts primarily to facilitate settlement activities that are related directly to advances and mortgage loan purchases. Transactions with any member that has an officer or director who is also a director of the Bank are subject to the same Bank policies as transactions with other members. Related Parties. In accordance with GAAP, financial statements are required to disclose material related-party transactions other than compensation arrangements, expense allowances, or other similar items that occur in the ordinary course of business. Under GAAP, related parties include owners of more than 10 percent of the voting interests of the Bank. Due to limits on member voting rights under the FHLBank Act and Finance Agency regulations, no member owned more than 10 percent of the total voting interests. Therefore, the Bank had no such related party transactions required to be disclosed for the periods presented. Shareholder Concentrations. The Bank considers shareholder concentration as members or non-members with regulatory capital stock outstanding in excess of 10 percent of the Bank's total regulatory capital stock. The following tables present transactions with shareholders whose holdings of regulatory capital stock exceed 10 percent of total regulatory capital stock outstanding. As of December 31, 2016 Regulatory Capital Stock Outstanding Percent of Total Regulatory Capital Stock Outstanding Par Value of Advances Percent of Total Par Value Advances Interest-bearing Deposits Percent of Total Interest-bearing Deposits Capital One, National Association $ 745 15.03 $ 17,176 17.48 $ 16 1.41 Navy Federal Credit Union 589 11.88 13,495 13.73 156 13.93 Bank of America, National Association 504 10.17 11,511 11.71 — 0.01 As of December 31, 2015 Regulatory Capital Stock Outstanding Percent of Total Regulatory Capital Stock Outstanding Par Value of Advances Percent of Total Par Value Advances Interest-bearing Deposits Percent of Total Interest-bearing Deposits Capital One, National Association $ 869 16.99 $ 20,095 19.54 $ 17 1.55 Navy Federal Credit Union 643 12.57 14,773 14.36 — 0.01 Bank of America, National Association 579 11.31 13,262 12.89 — 0.01 |
Transactions with Other FHLBank
Transactions with Other FHLBanks | 12 Months Ended |
Dec. 31, 2016 | |
Transactions with Other FHLBanks [Abstract] | |
Transactions With Other FHLBanks | Transactions with Other FHLBanks The Bank's activities with other FHLBanks are summarized below. Loans to and Borrowings from Other FHLBanks. Occasionally, the Bank loans short-term funds to or borrows short-term funds from the other FHLBanks; however, there were no outstanding loans to or borrowings from the other FHLBanks as of December 31, 2016 and 2015 . Interest income on loans to other FHLBanks was less than $1 for each of the years ended December 31, 2016 , 2015 , and 2014 . Interest expense on borrowings from other FHLBanks was $0 for the year ended December 31, 2016 , and less than $1 for each of the years ended December 31, 2015 and 2014 . The following table presents the cash flow activities for loans to and borrowings from other FHLBanks. For the Years Ended December 31, 2016 2015 2014 Investing activities: Loans made to other FHLBanks $ (1,010 ) $ (11,759 ) $ (990 ) Principal collected on loans made to other FHLBanks 1,010 11,759 990 Net change in loans made to other FHLBanks $ — $ — $ — Financing activities: Proceeds from short-term borrowings from other FHLBanks $ — $ 927 $ 1,038 Payments of short-term borrowings from other FHLBanks — (927 ) (1,038 ) Net change in borrowings from other FHLBanks $ — $ — $ — Investment in Another FHLBank's Consolidated Obligation Bond. Occasionally, the Bank purchases consolidated obligations issued by other FHLBanks through third-party dealers as investment securities. The balance of these investments is presented in Note 5 — Trading Securities. Interest income earned on these consolidated obligation bonds totaled $2 for the year ended December 31, 2016 and $9 for each of the years ended December 31, 2015 and 2014 . Mortgage Loan Purchases of Participation Interests from Other FHLBanks . During 2016, the Bank and FHLBank Indianapolis began participating in the funding of a master commitment with a member of FHLBank Indianapolis. The Bank's outstanding balance related to these mortgage loan assets was $72 as of December 31, 2016 . |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | On March 9, 2017, the Bank’s board of directors approved a cash dividend for the fourth quarter of 2016. The Bank will pay the fourth quarter 2016 dividend on March 14, 2017, in the amount of $58 . |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP) requires the Bank's management to make subjective assumptions and estimates, which are based upon the information then available to the Bank and are inherently uncertain and subject to change. These assumptions and estimates may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of income and expenses. Actual results could differ significantly from these estimates. |
Estimated Fair Values | Estimated Fair Values. The estimated fair value amounts, recorded on the Statements of Condition and in the note disclosures for the periods presented, have been determined by the Bank using available market and other pertinent information and reflect the Bank's best judgment of appropriate valuation methods. Although the Bank 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. |
Financial Instruments Meeting Netting Requirements | Financial Instruments Meeting Netting Requirements. The Bank has certain financial instruments, including derivative instruments and securities purchased under agreements to resell, that are subject to offset under master netting agreements or by operation of law. The Bank has elected to offset its derivative asset and liability positions, as well as cash collateral received or pledged, when it has the legal right of offset under these master agreements. The Bank does not have any offsetting liabilities related to its securities purchased under agreements to resell for the periods presented. 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. There may be a delay for excess collateral to be returned. For derivative instruments, any excess cash collateral received or pledged is recognized as a derivative liability or derivative asset based on the terms of the individual master agreement between the Bank and its derivative counterparty. Additional information regarding these agreements is provided in Note 18—Derivatives and Hedging Activities. Based on the fair value of the related securities held as collateral, the securities purchased under agreements to resell were fully collateralized for the periods presented. |
Investments | Interest-bearing Deposits, Securities Purchased under Agreements to Resell, and Federal Funds Sold . These investments provide short-term liquidity and are carried at cost. The Bank treats securities purchased under agreements to resell as short-term collateralized loans, which are classified as assets on the Statements of Condition. Securities purchased under agreements to resell are held in safekeeping in the name of the Bank by third-party custodians approved by the Bank. Should the fair value of the underlying securities decrease 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 name of the Bank, 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 transacted with counterparties that are considered by the Bank to be of investment quality. Interest on interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold is accrued as earned and recorded in interest income on the Statements of Income. Investment Securities. The Bank classifies certain investment securities acquired for purposes of liquidity and asset-liability management as trading investments and carries these securities at their estimated fair value. The Bank records changes in the fair value of these investments in noninterest income (loss) as “Net losses on trading securities” on the Statements of Income, along with gains and losses on sales of investment securities using the specific identification method. The Bank does not participate in speculative trading practices in these investments and generally holds them until maturity, except to the extent management deems necessary to manage the Bank's liquidity position. Investment securities that the Bank has both the ability and intent to hold to maturity are classified as held-to-maturity and are carried at amortized cost, adjusted for periodic principal repayments, amortization of premiums, and accretion of discounts. Amortization of premiums and accretion of discounts are computed using the contractual level-yield method (contractual interest method), adjusted for actual prepayments. The contractual interest method recognizes the income effects of premiums and discounts over the contractual life of the securities based on the actual behavior of the underlying assets, including adjustments for actual prepayment activities, and reflects the contractual terms of the securities without regard to changes in estimated prepayments based on assumptions about future borrower behavior. The Bank classifies certain securities that are not held-to-maturity or trading as available-for-sale and carries these securities at their estimated fair value. The Bank records changes in the fair value of these investments in other comprehensive income. The Bank intends to hold its available-for-sale securities for an indefinite period of time but may sell them prior to maturity in response to changes in interest rates, prepayment risk, or other factors. Other-than-temporary Impairment of Investment Securities. The Bank evaluates its individual available-for-sale and held-to-maturity securities in unrealized loss positions for other-than-temporary impairment on a quarterly basis. A security is considered impaired when its fair value is less than its amortized cost. The Bank considers an other-than-temporary impairment to have occurred under any of the following circumstances: • the Bank has an intent to sell the impaired debt security; • if, based on available evidence, the Bank believes it is more likely than not that it will be required to sell the impaired debt security before the recovery of its amortized cost basis; or • the Bank does not expect to recover the entire amortized cost basis of the impaired debt security. If either of the first two conditions above is met, the Bank recognizes an other-than-temporary impairment loss in earnings equal to the entire difference between the security's amortized cost basis and its fair value as of the Statements of Condition date. For securities in an unrealized loss position that meet neither of the first two conditions, the Bank performs a cash flow analysis to determine if it will recover the entire amortized cost basis of each of these securities. The present value of the cash flows expected to be collected is compared to the amortized cost basis of the debt security to determine whether a credit loss exists. If there is a credit loss (the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security), the carrying value of the debt security is adjusted to its fair value. However, rather than recognizing the entire difference between the amortized cost basis and fair value in earnings, only the amount of the impairment representing the credit loss (i.e., the credit component) is recognized in earnings, while the amount related to all other factors (i.e., the non-credit component) is recognized in other comprehensive income. The credit loss on a debt security is limited to the amount of that security's unrealized losses. The total other-than-temporary impairment is presented on the Statements of Income with an offset for the amount of the non-credit component of other-than-temporary impairment that is recognized in other comprehensive income. The remaining amount on the Statements of Income represents the credit loss for the period. For subsequent accounting of an other-than-temporarily impaired security, the Bank records an additional other-than-temporary impairment if the present value of cash flows expected to be collected is less than the amortized cost of the security. The total amount of this additional other-than-temporary impairment (both credit and non-credit component, if any) is determined as the difference between the security's amortized cost, less the amount of other-than-temporary impairment recognized in other comprehensive income prior to the determination of this additional other-than-temporary impairment, and its fair value. Any additional credit loss is limited to that security's unrealized losses or the difference between the security's amortized cost and its fair value as of the Statements of Condition date. This additional credit loss, up to the amount in other comprehensive income related to the security, is reclassified out of other comprehensive income and recognized in earnings. Any credit loss in excess of the related other comprehensive income is recorded as additional total other-than-temporary impairment loss and recognized in earnings. For debt securities classified as available-for-sale, the Bank does not accrete the other-than-temporary impairment recognized in accumulated other comprehensive income to the carrying value. Rather, subsequent related increases and decreases (if not an other-than-temporary impairment) in the fair value of available-for-sale securities are netted against the non-credit component of other-than-temporary impairment recognized previously in accumulated other comprehensive income. Upon subsequent evaluation of a debt security where there is no additional other-than-temporary impairment, the Bank adjusts the accretable yield on a prospective basis if there is a significant increase in the security's expected cash flows. As of the impairment measurement date, a new accretable yield is calculated for the impaired investment security. This adjusted yield is then used to calculate the interest income recognized over the remaining life of the security so as to match the amount and timing of future cash flows expected to be collected. Subsequent significant increases in estimated cash flows change the accretable yield on a prospective basis. |
Advances | Advances. The Bank reports advances (secured loans to members, former members, or housing associates), net of discounts on advances related to the Affordable Housing Program (AHP) and the Economic Development and Growth Enhancement Program (EDGE), unearned commitment fees, and hedging basis adjustments. The Bank accretes the discounts on advances and amortizes the recognized unearned commitment fees and hedging adjustments to interest income using the contractual interest method. The Bank records interest on advances to interest income as earned. Prepayment Fees . The Bank charges a borrower a prepayment fee when the borrower prepays certain advances before the original maturity date. The Bank records prepayment fees, net of basis adjustments related to hedging activities included in the carrying value of the advance as “Prepayment fees on advances, net” in the interest income section of the Statements of Income. In cases in which there is a prepayment of an existing advance and a contemporaneous funding of a new advance, the Bank evaluates whether the new advance meets the accounting criteria to qualify as a modification of an existing advance or whether it constitutes a new advance. If the new advance qualifies as a modification of the existing advance, the hedging basis adjustments and the net prepayment fee on the prepaid advance are recorded in the carrying value of the modified advance and amortized over the life of the modified advance using the contractual interest method. This amortization is recorded in advance interest income. If the Bank determines that the transaction does not qualify as a modification of an existing advance, it is treated as an advance termination with subsequent funding of a new advance, and the Bank records the net fees as “Prepayment fees, net” in the interest income section of the Statements of Income. |
Mortgage Loans Held for Portfolio | Mortgage Loans Held for Portfolio. The Bank classifies mortgage loans that it has the intent and ability to hold for the foreseeable future or until maturity or payoff as held for portfolio. Accordingly, these mortgage loans are reported net of unamortized premiums, unaccreted discounts, mark-to-market basis adjustments on loans initially classified as mortgage loan commitments, and any allowance for credit losses. The Bank defers and amortizes premiums and accretes discounts (1) paid to and received by the participating financial institutions (PFIs), and (2) of mark-to-market basis adjustments on loans initially classified as mortgage loan commitments, as interest income using the contractual interest method. A mortgage loan is considered past due when the principal or interest payment is not received in accordance with the contractual terms of the loan. The Bank places a conventional mortgage loan on nonaccrual status when the collection of the contractual principal or interest from the borrower is 90 days or more past due. When a mortgage loan is placed on nonaccrual status, accrued but uncollected interest is reversed against interest income. The Bank records cash payments received on nonaccrual loans as interest income and as a reduction of principal as specified in the contractual agreement. A loan on nonaccrual status may be restored to accrual status when the contractual principal and interest are less than 90 days past due. A government-guaranteed or -insured loan is not placed on nonaccrual status when the collection of the contractual principal or interest is 90 days or more past due because of the (1) U.S. government guarantee or insurance on the loan, and (2) the contractual obligation of the loan servicer to repurchase the loan when certain criteria are met. A mortgage loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the mortgage loan agreement. Interest income is recognized in the same manner as nonaccrual loans. Finance Agency regulations require that mortgage loans held in the Bank's portfolios be credit enhanced so that the Bank's risk of loss is limited to the losses of an investor in at least an investment-grade category, such as “BBB.” For conventional mortgage loans, PFIs retain a portion of the credit risk on the loans they sell to the Bank by providing credit enhancement either through a direct liability to pay credit losses up to a specified amount or through a contractual obligation to provide supplemental mortgage insurance. PFIs are paid a credit enhancement fee (CE Fee) for assuming credit risk, and in some instances, all or a portion of the CE Fee may be performance based. CE Fees are paid monthly based on the remaining unpaid principal balance of the loans in a master commitment. CE Fees are recorded as an offset to mortgage loan interest income. To the extent that the Bank experiences losses in a master commitment, it may be able to recapture CE Fees paid to the PFI to offset these losses. Allowance for Credit Losses. The allowance for credit losses is a valuation allowance separately established for each identified portfolio segment of financing receivables, if necessary, to provide for probable incurred losses in the Bank's portfolio as of the Statements of Condition date. 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 Bank has developed and documented a systematic methodology for determining an allowance for credit losses for the following portfolio segments of financing receivables: advances and standby letters of credit, government-guaranteed or -insured residential mortgage loans held for portfolio, conventional residential mortgage loans held for portfolio, term federal funds sold, and term securities purchased under agreements to resell. A portfolio segment may be further disaggregated into classes of financing receivables to the extent that it is needed to understand the exposure to credit risk arising from these financing receivables; however, the Bank determined that no further disaggregation of the portfolio segments identified above is needed. The Bank manages its credit exposure to advances through an integrated approach that includes (1) establishing a credit limit for each borrower; (2) an ongoing review of each borrower's financial condition; and (3) collateral and lending policies to limit risk of loss, while balancing each borrower's needs for a reliable source of funding. In addition, the Bank lends to financial institutions within its district and housing associates in accordance with federal statutes and Finance Agency regulations. Specifically, the Bank complies with the FHLBank Act, which requires the Bank to obtain sufficient collateral to fully secure advances. The estimated value of the collateral required to secure each borrower's advances is calculated by applying discounts to the fair value or unpaid principal balance of the collateral, as applicable. The Bank accepts certain investment securities, residential mortgage loans, deposits, and other real estate related assets as collateral. The Bank's capital stock owned by its member borrower is also pledged as additional collateral. Collateral arrangements may vary depending upon borrower credit quality, financial condition and performance, borrowing capacity, and the Bank's overall credit exposure to the borrower. The Bank can call for additional or substitute collateral to protect its security interest. The Bank believes that these policies effectively manage credit risk from advances. Based upon the financial condition of the borrower, the Bank either allows a borrower to retain physical possession of the collateral pledged to it or requires the borrower to specifically assign the collateral to or place the collateral in physical possession of the Bank or its safekeeping agent. The Bank requires its borrowers to execute an advances and security agreement that establishes the Bank's security interest in all collateral pledged by the borrower to the Bank. The Bank perfects its security interest in all pledged collateral. The FHLBank Act affords any security interest granted to the Bank by a borrower priority over the claims or rights of any other party (including any receiver, conservator, trustee, or similar party having rights of a lien creditor), except for claims or rights of a third party that (1) would be entitled to priority under otherwise applicable law, and (2) is an actual bona fide purchaser for value or is an actual secured party whose security interest is perfected in accordance with state law. Using a risk-based approach and taking into consideration each borrower's financial strength, the Bank considers the types and amounts of pledged collateral to be the primary indicator of credit quality on its advances. The Bank had rights to collateral on a borrower-by-borrower basis with an estimated value equal to or greater than its outstanding extensions of credit as of December 31, 2016 and 2015 . The Bank continues to evaluate and make changes to its collateral policies, as necessary, based on current market conditions. No advance was past due, on nonaccrual status, or considered impaired as of December 31, 2016 and 2015 . In addition, there were no troubled debt restructurings related to advances as of December 31, 2016 and 2015 . Based upon the collateral held as security, the Bank's collateral policies, credit analysis, and the repayment history on advances, the Bank did not anticipate any credit losses on advances as of December 31, 2016 and 2015 . Accordingly, the Bank has not recorded any allowance for credit losses on advances, nor has the Bank recorded any liability to reflect an allowance for credit losses for off-balance sheet credit exposure as of December 31, 2016 and 2015 . The Bank invested in government-guaranteed or -insured fixed-rate mortgage loans secured by one-to-four family residential properties. Government-guaranteed or -insured mortgage loans are mortgage loans guaranteed or insured by the Department of Veterans Affairs or the Federal Housing Administration. 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-guaranteed or -insured mortgage loans. Any losses incurred on these loans that are not recovered from the issuer or the guarantor are absorbed by the servicers. Therefore, the Bank only has credit risk for these loans if the servicer fails to pay for losses not covered by insurance or guarantees. Based on the Bank's assessment of its servicers, the Bank did not establish an allowance for credit losses for its government-guaranteed or -insured mortgage loan portfolio as of December 31, 2016 and 2015 . Modified loans that are considered a troubled debt restructuring are evaluated individually for impairment. All other conventional residential mortgage loans are evaluated collectively for impairment. The allowance for conventional residential mortgage loans is determined by an analysis (performed at least quarterly) that includes segregating the portfolio into various aging groups. For loans that are 60 days or less past due, the Bank calculates a loss severity, default rate, and the expected loss based on individual loan characteristics. For loans that are more than 60 days past due, the allowance is determined using an automated valuation model. A modified loan that is considered a troubled debt restructuring is individually evaluated for impairment when determining its related allowance for credit losses. Credit loss is measured by factoring in expected cash shortfalls (i.e., loss severity rate) incurred as of the reporting date, as well as the economic loss attributable to delaying the original contractual principal and interest due dates. A charge-off is recorded if the recorded investment in the loan will not be recovered. The Bank evaluates whether to record a charge-off on a conventional residential mortgage loan upon the occurrence of a confirming event. Once a loan is 180 days delinquent, the Bank classifies as a loss and charges off the portion of outstanding conventional residential mortgage loan balances in excess of the fair value of the underlying property, less costs to sell and adjusted for any available credit enhancements. Term federal funds sold are generally short-term, their recorded balance approximates fair value, and they are transacted with counterparties that the Bank considers to be of investment quality. The Bank's investment in federal funds sold are evaluated for purposes of an allowance for credit losses only if the investment is not paid when due. All investments in federal funds sold are unsecured and were repaid or expected to be repaid according to the contracted terms as of December 31, 2016 and 2015 . Securities purchased under agreements to resell are considered collateralized financing arrangements and effectively represent short-term loans transacted with counterparties that the Bank considers to be of investment quality. The terms of these loans are structured such that if the fair value of the underlying securities decreases below the fair value required as collateral, the counterparty must place an equivalent amount of additional securities as collateral or remit an equivalent amount of cash. If an agreement to resell is deemed to be impaired, the difference between the fair value of the collateral and the amortized cost of the agreement is recognized in earnings. Based upon the collateral held as security, the Bank determined that no allowance for credit losses was needed for the securities purchased under agreements to resell as of December 31, 2016 and 2015 . |
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 Bank 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 realized gains, realized or unrealized losses, and carrying costs are included in noninterest income (loss) on the Statements of Income. REO is recorded in “Other assets” on the Statements of Condition. REO was $2 and $9 as of December 31, 2016 and 2015 , respectively. |
Derivatives | 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, including initial and variation margin, and accrued interest received from or pledged to clearing agents and/or counterparties. The fair values of derivatives are netted by the clearing agent and/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 on the Statements of Cash Flows unless the derivative meets the criteria to be a financing derivative. Derivatives not used for intermediary purposes are designated as either (1) a hedge of the fair value of (a) a recognized asset or liability or (b) an unrecognized firm commitment (a fair-value hedge); or (2) a non-qualifying hedge of an asset or liability for asset-liability management purposes. Changes in the fair value of a derivative that are effective as, and that are designated and qualify 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 (including changes that reflect losses or gains on firm commitments), are recorded in noninterest income (loss) as “Net gains on derivatives and hedging activities” on the Statements of Income. Any hedge ineffectiveness (which represents the amount by which the change in the fair value of the derivative differs from the change in the fair value of the hedged item) is recorded in noninterest income (loss) as “Net gains on derivatives and hedging activities” on the Statements of Income. A non-qualifying hedge is a derivative hedging specific or non-specific underlying assets, liabilities, or firm commitments that is an acceptable hedging strategy under the Bank's risk management program and Finance Agency regulatory requirements, but it does not qualify or was not designated for fair value or cash flow hedge accounting. A non-qualifying hedge introduces the potential for earnings variability because only the change in fair value of the derivative is recorded and is not offset by corresponding changes in the fair value of the non-qualifying hedged asset, liability, or firm commitment, unless such asset, liability, or firm commitment is required to be accounted for at fair value through earnings. Both the net interest on the derivative and the fair value adjustments of a non-qualifying hedge are recorded in noninterest income (loss) as “Net gains on derivatives and hedging activities” on the Statements of Income. The derivatives used in intermediary activities do not qualify for hedge accounting treatment and are separately marked-to-market through earnings. These amounts are recorded in noninterest income (loss) as “Net gains on derivatives and hedging activities” on the Statements of Income. The net result of the accounting for these derivatives does not significantly impact the Bank's results of operations. The net settlement of interest receivables and payables related to derivatives designated as fair-value hedges are recognized as adjustments to the interest income or interest expense of the designated hedged item. The net settlement of interest receivables and payables related to intermediated derivatives for members and other non-qualifying hedges are recognized in noninterest income (loss) as “Net gains on derivatives and hedging activities” on the Statements of Income. The Bank discontinues hedge accounting prospectively when (1) it determines that the derivative is no longer expected to be effective in offsetting changes in the fair value of a 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) the bank determines that designating the derivative as a hedging instrument is no longer appropriate. When hedge accounting is discontinued due to the Bank's determination that a derivative no longer qualifies as an effective fair-value hedge of an existing hedged item, or when the bank decides to cease the specific hedging activity, the Bank will either (1) terminate the derivative; or (2) continue to carry the derivative on the Statements of Condition at its fair value, cease to adjust the hedged asset or liability for changes in fair value, and amortize the cumulative basis adjustment on the hedged item into earnings over the remaining life of the hedged item using the level-yield method. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Bank will carry the derivative at its fair value on the Statements of Condition, recognizing changes in the fair value of the derivative in current-period earnings. |
Embedded Derivatives | The Bank may issue debt, make advances, or purchase financial instruments in which a derivative instrument may be “embedded.” Upon execution of these transactions, the Bank assesses whether the economic characteristics of the embedded derivative are clearly and closely related to the economic characteristics of the remaining component of the advance, debt, or purchased financial instruments (i.e., 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 it is determined that (1) the embedded derivative possesses 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 a non-qualifying 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 (e.g., an investment security classified as “trading”), or if the Bank could not identify and measure reliably the embedded derivative for purposes of separating that derivative from its host contract, the entire contract would be carried on the Statements of Condition at fair value, and no portion of the contract could be designated as a hedging instrument. |
Premises and Equipment | Premises, Equipment, and Software. The Bank records premises and equipment at cost less accumulated depreciation. The Bank's accumulated depreciation was $64 and $66 as of December 31, 2016 and 2015 , respectively. The Bank computes depreciation using the straight-line method over the estimated useful lives of assets. The estimated useful lives in years are generally as follows: automobiles and computer hardware- three ; office equipment- eight ; office furniture and building improvements- 10 ; and building- 40 . The Bank amortizes leasehold improvements using the straight-line method over the shorter of the estimated useful life of the improvement or the remaining term of the lease. The Bank capitalizes improvements and expenses ordinary maintenance and repairs when incurred. Depreciation expense was $4 for the years ended December 31, 2016 , 2015 , and 2014 . The Bank includes gains and losses on disposal of premises and equipment in noninterest income (loss). |
Software | The Bank records the cost of purchased software and certain costs incurred in developing computer software for internal use at cost, less accumulated amortization. The Bank amortizes capitalized computer software cost using the straight-line method over an estimated useful life of five years. The gross carrying amount of computer software included in other assets was $55 and $58 , and accumulated amortization was $48 and $49 , as of December 31, 2016 and 2015 , respectively. Amortization of computer software was $3 for the year ended December 31, 2016 and $5 for the years ended December 31, 2015 and 2014 . The Bank includes gains and losses on disposal of capitalized software cost in noninterest income (loss). |
Consolidated Obligations | Consolidated Obligations. The Bank records consolidated obligations at amortized cost. Additionally, the Bank pays concessions to dealers in connection with the issuance of certain consolidated obligations. The Federal Home Loan Bank Office of Finance (Office of Finance) prorates the concessions to the Bank based upon the percentage of the debt issued that is assumed by the Bank. The Bank records concessions paid on consolidated obligations as a direct deduction from their carrying amounts, consistent with the presentation of discounts on consolidated obligations. The Bank accretes discounts and amortizes premiums, as well as concessions and hedging basis adjustments on consolidated obligations, to interest expense using the contractual interest method over the contractual term of the corresponding consolidated obligation. |
Mandatorily Redeemable Capital Stock | Mandatorily Redeemable Capital Stock. The Bank reclassifies stock that is subject to redemption from capital to a liability after a member submits a written redemption request, gives notice of intent to withdraw from membership, or attains non-member status through a 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. Member shares meeting this definition are reclassified to a liability at fair value. Dividends declared on shares classified as a liability are accrued at the expected dividend rate and recorded as interest expense on the Statements of Income. The repurchase or redemption of these mandatorily redeemable financial instruments is recorded as cash outflows in the financing activities section of the Statements of Cash Flows. If a member cancels its written notice of redemption or notice of withdrawal, the Bank will reclassify mandatorily redeemable capital stock from a liability to capital. After the reclassification, dividends on the capital stock no longer will be classified as interest expense. |
Restricted Retained Earnings | Restricted Retained Earnings. The FHLBanks entered into a Joint Capital Enhancement Agreement, as amended (Capital Agreement), which is intended to enhance the capital position of each FHLBank. Under the Capital Agreement, each FHLBank allocates 20 percent of its net income each quarter to a separate retained earnings account until the account balance equals at least one percent of the FHLBank’s average balance of outstanding consolidated obligations for the previous quarter. Restricted retained earnings are not available to pay dividends and are presented separately on the Statements of Condition. |
Finance Agency and Office of Finance Expenses | Finance Agency and Office of Finance Expenses. The Finance Agency allocates the FHLBanks' portion of its expenses and working capital fund among the FHLBanks based on the ratio between each FHLBank's minimum required regulatory capital and the aggregate minimum required regulatory capital of every FHLBank. Each FHLBank's proportionate share of the Office of Finance's operating and capital expenditures is calculated using a formula that is (1) two-thirds based upon each FHLBank's share of total consolidated obligations outstanding, and (2) one-third based upon an equal pro rata allocation. |
Affordable Housing Program | Affordable Housing Program. The FHLBank Act requires each FHLBank to establish and fund an AHP that provides subsidies to members to assist in the purchase, construction, or rehabilitation of housing for very low-to-moderate-income households. The Bank charges the required funding for AHP against earnings and establishes a corresponding liability. The Bank issues AHP advances at interest rates below the customary interest rate for non-subsidized advances. A discount on the AHP advance and charge against the AHP liability is recorded for the present value of the variation in the cash flow caused by the difference in the interest rate between the AHP advance rate and the Bank's related cost of funds for comparable maturity funding. As an alternative, the Bank has the authority to make the AHP subsidy available to members as a grant. The discount on AHP advances is accreted to interest income on advances using the contractual interest method over the life of the advance. |
Trading Securities (Tables)
Trading Securities (Tables) - Categories of Investments, Marketable Securities, Trading Securities [Member] | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |
Schedule of Major Trading Securities | Major Security Types. The following table presents trading securities. As of December 31, 2016 2015 Government-sponsored enterprises debt obligations $ 261 $ 1,212 Another FHLBank’s bond (1) — 52 State or local housing agency debt obligations 1 1 Total $ 262 $ 1,265 ____________ (1) The Federal Home Loan Bank of Chicago is the primary obligor of this consolidated obligation bond. |
Schedule of Net Unrealized and Realized (Losses) Gains on Trading Securities | The following table presents net losses on trading securities. For the Years Ended December 31, 2016 2015 2014 Net losses on trading securities held at year end $ (8 ) $ (61 ) $ (53 ) Net losses on trading securities that matured during the year (22 ) — (7 ) Net losses on trading securities $ (30 ) $ (61 ) $ (60 ) |
Available-for-sale Securities (
Available-for-sale Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | |
Available-for-Sale Securities Reconciliation | Major Security Type. The following table presents information on private-label residential mortgage-backed securities (MBS) that are classified as available-for-sale. Amortized Cost Other-than-temporary Impairment Recognized in Accumulated Other Comprehensive Income Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value As of December 31, 2016 $ 1,221 $ 6 $ 130 $ — $ 1,345 As of December 31, 2015 $ 1,567 $ 19 $ 114 $ — $ 1,662 |
Summary of Available-for-Sale MBS Issued by Members or Affiliates or Members | The following table presents private-label residential MBS that are classified as available-for-sale and issued by members or affiliates of members, all of which have been issued by Bank of America Corporation, Charlotte, NC. Amortized Cost Other-than-temporary Impairment Recognized in Accumulated Other Comprehensive Income Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value As of December 31, 2016 $ 792 $ 5 $ 102 $ — $ 889 As of December 31, 2015 $ 1,037 $ 16 $ 77 $ — $ 1,098 |
Categories of Investments, Marketable Securities, Available-for-sale Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Available-for-Sale Securities with Unrealized Losses | The following table presents private-label residential MBS that are classified as available-for-sale with unrealized losses. The unrealized losses are aggregated by the length of time that the individual securities have been in a continuous unrealized loss position. Less than 12 Months 12 Months or More Total Number of Positions Estimated Fair Value Gross Unrealized Losses Number of Positions Estimated Fair Value Gross Unrealized Losses Number of Positions Estimated Fair Value Gross Unrealized Losses As of December 31, 2016 1 $ 14 $ — 10 $ 189 $ 6 11 $ 203 $ 6 As of December 31, 2015 3 $ 107 $ 2 10 $ 247 $ 17 13 $ 354 $ 19 |
Schedule of Interest Rate Payment Terms For Investments | Interest-rate Payment Terms. The following table presents interest-rate payment terms for investment securities classified as available-for-sale. As of December 31, 2016 2015 Variable-rate $ 1,202 $ 1,540 Fixed-rate 19 27 Total amortized cost $ 1,221 $ 1,567 |
Held-to-maturity Securities (Ta
Held-to-maturity Securities (Tables) - Held-to-maturity Securities [Member] | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Held-to-maturity Securities [Line Items] | |
Schedule of Held-to-Maturity Securities | Major Security Types. The following table presents held-to-maturity securities. As of December 31, 2016 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated State or local housing agency debt obligations $ 76 $ — $ — $ 76 $ 76 $ — $ — $ 76 Government-sponsored enterprises debt obligations 6,041 3 5 6,039 5,693 — 12 5,681 Mortgage-backed securities: U.S. agency obligations-guaranteed residential 209 2 — 211 279 4 — 283 Government-sponsored enterprises residential 10,752 44 43 10,753 11,958 88 31 12,015 Government-sponsored enterprises commercial 6,773 2 11 6,764 4,140 — 16 4,124 Private-label residential 790 5 5 790 1,093 4 13 1,084 Total $ 24,641 $ 56 $ 64 $ 24,633 $ 23,239 $ 96 $ 72 $ 23,263 |
Schedule of Unrealized Loss on Investments | The following tables present held-to-maturity securities with unrealized losses. The unrealized losses are aggregated by major security type and by the length of time that the individual securities have been in a continuous unrealized loss position. As of December 31, 2016 Less than 12 Months 12 Months or More Total Number of Positions Estimated Fair Value Gross Unrealized Losses Number of Positions Estimated Fair Value Gross Unrealized Losses Number of Positions Estimated Fair Value Gross Unrealized Losses Government-sponsored enterprises debt obligations 10 $ 2,532 $ 5 — $ — $ — 10 $ 2,532 $ 5 Mortgage-backed securities: Government-sponsored enterprises residential 46 2,813 22 63 2,206 21 109 5,019 43 Government-sponsored enterprises commercial 52 4,147 6 22 1,540 5 74 5,687 11 Private-label residential 6 10 — 56 432 5 62 442 5 Total 114 $ 9,502 $ 33 141 $ 4,178 $ 31 255 $ 13,680 $ 64 As of December 31, 2015 Less than 12 Months 12 Months or More Total Number of Positions Estimated Fair Value Gross Unrealized Losses Number of Positions Estimated Fair Value Gross Unrealized Losses Number of Positions Estimated Fair Value Gross Unrealized Losses Government-sponsored enterprises debt obligations 20 $ 4,535 $ 7 3 $ 745 $ 5 23 $ 5,280 $ 12 Mortgage-backed securities: Government-sponsored enterprises residential 41 3,233 21 8 443 10 49 3,676 31 Government-sponsored enterprises commercial 31 2,680 9 25 1,037 7 56 3,717 16 Private-label residential 29 407 2 47 428 11 76 835 13 Total 121 $ 10,855 $ 39 83 $ 2,653 $ 33 204 $ 13,508 $ 72 |
Amortized Cost and Estimated Fair Value of Held-to-Maturity Securities by Contractual Maturity | Redemption Terms. The following table presents the amortized cost and estimated fair value of held-to-maturity securities by contractual maturity. Expected maturities of some securities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees. As of December 31, 2016 2015 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Non-mortgage-backed securities: Due in one year or less $ 2,454 $ 2,455 $ 651 $ 651 Due after one year through five years 3,487 3,484 5,118 5,106 Due after five years through ten years 176 176 — — Total non-mortgage-backed securities 6,117 6,115 5,769 5,757 Mortgage-backed securities 18,524 18,518 17,470 17,506 Total $ 24,641 $ 24,633 $ 23,239 $ 23,263 |
Schedule of Interest Rate Payment Terms For Investments | Interest-rate Payment Terms. The following table presents interest-rate payment terms for investment securities classified as held-to-maturity. As of December 31, 2016 2015 Non-mortgage-backed securities: Fixed-rate $ 2,413 $ 1,915 Variable-rate 3,704 3,854 Total non-mortgage-backed securities 6,117 5,769 Mortgage-backed securities: Fixed-rate 2,438 2,949 Variable-rate 16,086 14,521 Total mortgage-backed securities 18,524 17,470 Total amortized cost $ 24,641 $ 23,239 |
Held-to-Maturity MBS Issued by Members or Affiliates of Members | The following table presents private-label residential MBS that are classified as held-to-maturity and issued by members or affiliates of members, all of which have been issued by Bank of America Corporation, Charlotte, NC. Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value As of December 31, 2016 $ 177 $ — $ 2 $ 175 As of December 31, 2015 $ 286 $ — $ 5 $ 281 |
Other-than-Temporary Impairme35
Other-than-Temporary Impairment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other than Temporary Impairment Losses, Investments [Abstract] | |
Schedule of Significant Inputs in Measuring Other than Temporary Impairments Recongized in Earnings | The following table presents a summary of the significant inputs used to measure the amount of the credit loss recognized in earnings for those securities for which an other-than-temporary impairment was determined to have occurred during the year ended December 31, 2016 , as well as the related current credit enhancement. Significant Inputs - Weighted Average (%) (1) Classification of Securities Prepayment Rates Default Rates Loss Severities Current Credit Enhancement (%) Prime 15.02 4.62 19.73 0.24 Alt-A 12.13 17.56 40.22 0.00 Total 12.31 16.76 38.95 0.02 ____________ (1) The classification of securities is based on current characteristics and performance, which may be different from the securities’ classification as determined by the originator at the time of origination. |
Schedule of Roll-Forward Cumulative Credit Losses Recognized | The following table presents a roll-forward of the amount of credit losses on the Bank’s investment securities recognized in earnings during the life of the securities for which a portion of the other-than-temporary loss was recognized in accumulated other comprehensive income. For the Years Ended December 31, 2016 2015 2014 Balance, beginning of year $ 505 $ 542 $ 574 Amount related to credit loss for which an other-than-temporary impairment was previously recognized 3 5 3 Increase in cash flows expected to be collected, (accreted as interest income over the remaining lives of the applicable securities) (53 ) (42 ) (35 ) Balance, end of year $ 455 $ 505 $ 542 |
Advances (Tables)
Advances (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Advances [Abstract] | |
Federal Home Loan Bank, Advances | The following table presents the Bank's advances outstanding. As of December 31, 2016 2015 Overdrawn demand deposit accounts $ — $ 16 Due in one year or less 47,325 46,673 Due after one year through two years 8,244 12,747 Due after two years through three years 5,904 6,360 Due after three years through four years 5,859 2,994 Due after four years through five years 11,846 4,616 Due after five years 19,110 29,458 Total par value 98,288 102,864 Discount on AHP advances (5 ) (6 ) Discount on EDGE advances (4 ) (4 ) Hedging adjustments 798 1,315 Deferred commitment fees — (1 ) Total $ 99,077 $ 104,168 The Bank offers callable advances to members that may be prepaid on prescribed dates (call dates) without incurring prepayment or termination fees. The Bank also offers prepayable advances, which are variable-rate advances that may be contractually prepaid by the borrower on specified dates without incurring prepayment or termination fees. Other advances may be prepaid only by paying a fee to the Bank, so the Bank is financially indifferent to the prepayment of the advance. The Bank had callable and prepayable advances outstanding of $27,459 and $25,565 as of December 31, 2016 and 2015 , respectively. The following table presents advances by year of contractual maturity or next call date for callable advances. As of December 31, 2016 2015 Overdrawn demand deposit accounts $ — $ 16 Due or callable in one year or less 72,404 71,243 Due or callable after one year through two years 7,680 11,593 Due or callable after two years through three years 3,740 5,545 Due or callable after three years through four years 2,289 2,214 Due or callable after four years through five years 4,570 2,371 Due or callable after five years 7,605 9,882 Total par value $ 98,288 $ 102,864 Convertible advances offered by the Bank allow the Bank to convert the fixed-rate advance to a variable-rate advance at the current market rate on certain specified dates. The Bank had convertible advances outstanding of $1,497 and $2,394 as of December 31, 2016 and 2015 , respectively. The following table presents advances by year of contractual maturity or, for convertible advances, next conversion date. As of December 31, 2016 2015 Overdrawn demand deposit accounts $ — $ 16 Due or convertible in one year or less 47,935 48,743 Due or convertible after one year through two years 7,724 11,434 Due or convertible after two years through three years 5,943 5,768 Due or convertible after three years through four years 5,867 3,020 Due or convertible after four years through five years 11,866 4,609 Due or convertible after five years 18,953 29,274 Total par value $ 98,288 $ 102,864 Interest-rate Payment Terms. The following table presents interest-rate payment terms for advances. As of December 31, 2016 2015 Fixed-rate: Due in one year or less $ 38,597 $ 32,011 Due after one year 24,528 27,051 Total fixed-rate 63,125 59,062 Variable-rate: Due in one year or less 8,728 14,678 Due after one year 26,435 29,124 Total variable-rate 35,163 43,802 Total par value $ 98,288 $ 102,864 |
Mortgage Loans Held for Porfoli
Mortgage Loans Held for Porfolio (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Mortgage Loans on Real Estate [Abstract] | |
Schedule of Mortgage Loans Held for Portfolio | The following table presents information on mortgage loans held for portfolio by contractual maturity at the time of purchase. As of December 31, 2016 2015 Medium-term (15 years or less) $ 40 $ 66 Long-term (greater than 15 years) 485 521 Total unpaid principal balance 525 587 Premiums 2 2 Discounts (3 ) (3 ) Total $ 524 $ 586 |
Mortgage Loans Held for Portfolio by Collateral or Guarantee Type | The following table presents the unpaid principal balance of mortgage loans held for portfolio by collateral or guarantee type. As of December 31, 2016 2015 Conventional mortgage loans $ 492 $ 546 Government-guaranteed or insured mortgage loans 33 41 Total unpaid principal balance $ 525 $ 587 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Allowance for Credit Losses [Abstract] | |
Allowance for Credit Losses on Financing Receivables | The following table presents the activity in the allowance for credit losses related to conventional residential mortgage loans. For the Years Ended December 31, 2016 2015 2014 Balance, beginning of year $ 2 $ 3 $ 11 Reversal of provision for credit losses (1 ) (1 ) (5 ) Charge-offs — — (3 ) Balance, end of year $ 1 $ 2 $ 3 |
Allowance for Credit Losses and Recorded Investment by Impairment Methodology | The following table presents the recorded investment in conventional residential mortgage loans by impairment methodology. As of December 31, 2016 2015 Allowance for credit losses: Collectively evaluated for impairment $ 1 $ 2 Recorded investment: Individually evaluated for impairment $ 12 $ 15 Collectively evaluated for impairment 481 532 Total recorded investment $ 493 $ 547 |
Past Due Financing Receivables | The following tables present the Bank's recorded investment in mortgage loans by these key credit quality indicators. As of December 31, 2016 Conventional Residential Mortgage Loans Government-guaranteed or Insured Residential Mortgage Loans Total Past due 30-59 days $ 17 $ 4 $ 21 Past due 60-89 days 3 1 4 Past due 90 days or more 12 1 13 Total past due mortgage loans 32 6 38 Total current mortgage loans 461 27 488 Total mortgage loans (1) $ 493 $ 33 $ 526 Other delinquency statistics: In process of foreclosure (2) $ 6 $ 1 $ 7 Seriously delinquent rate (3) 2.44 % 3.75 % 2.53 % Past due 90 days or more and still accruing interest (4) $ — $ 1 $ 1 Mortgage loans on nonaccrual status (5) $ 12 $ — $ 12 ____________ (1) The difference between the recorded investment and the carrying value of total mortgage loans of $2 relates to accrued interest. (2) Includes mortgage loans where the decision of foreclosure or similar alternative, such as a pursuit of deed-in lieu, has been reported. Mortgage loans in the process of foreclosure are included in past due or current mortgage loans depending on their delinquency status. (3) Mortgage loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total mortgage loan portfolio segment. (4) Mortgage loans insured or guaranteed by the Federal Housing Administration or the Department of Veterans Affairs. (5) Represents mortgage loans with contractual principal or interest payments 90 days or more past due and not accruing interest. As of December 31, 2015 Conventional Residential Mortgage Loans Government-guaranteed or Insured Residential Mortgage Loans Total Past due 30-59 days $ 17 $ 4 $ 21 Past due 60-89 days 5 1 6 Past due 90 days or more 18 3 21 Total past due mortgage loans 40 8 48 Total current mortgage loans 507 34 541 Total mortgage loans (1) $ 547 $ 42 $ 589 Other delinquency statistics: In process of foreclosure (2) $ 9 $ 1 $ 10 Seriously delinquent rate (3) 3.32 % 6.65 % 3.55 % Past due 90 days or more and still accruing interest (4) $ — $ 3 $ 3 Mortgage loans on nonaccrual status (5) $ 18 $ — $ 18 ____________ (1) The difference between the recorded investment and the carrying value of total mortgage loans of $3 relates to accrued interest. (2) Includes mortgage loans where the decision of foreclosure or similar alternative, such as a pursuit of deed-in lieu, has been reported. Mortgage loans in the process of foreclosure are included in past due or current mortgage loans depending on their delinquency status. (3) Mortgage loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total mortgage loan portfolio segment. (4) Mortgage loans insured or guaranteed by the Federal Housing Administration or the Department of Veterans Affairs. (5) Represents mortgage loans with contractual principal or interest payments 90 days or more past due and not accruing interest. |
Troubled Debt Restructurings on Financing Receivables | The following table presents the Bank's recorded investment balance in mortgage loans classified as troubled debt restructurings. As of December 31, 2016 2015 Performing Non-performing Total Performing Non-performing Total Conventional residential mortgage loans $ 10 $ 2 $ 12 $ 13 $ 2 $ 15 |
Consolidated Obligations (Table
Consolidated Obligations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Consolidated Obligation Bonds by Interest-Rate Payment | Interest-rate Payment Terms. The following table presents the Bank’s consolidated obligation bonds by interest-rate payment type. As of December 31, 2016 2015 Fixed-rate $ 23,674 $ 40,512 Step up/down 2,534 4,239 Simple variable-rate 62,408 19,022 Total par value $ 88,616 $ 63,773 |
Consolidated Obligation Bonds Outstanding, by Year of Contractual Maturity | Redemption Terms. The following table presents the Bank’s participation in consolidated obligation bonds outstanding by year of contractual maturity. As of December 31, 2016 2015 Amount Weighted- average Interest Rate (%) Amount Weighted- average Interest Rate (%) Due in one year or less $ 65,378 0.91 $ 32,559 0.74 Due after one year through two years 17,065 1.05 17,132 1.41 Due after two years through three years 1,849 1.67 5,959 1.63 Due after three years through four years 1,482 1.68 2,124 1.67 Due after four years through five years 1,117 1.58 1,975 1.72 Due after five years 1,725 2.37 4,024 2.18 Total par value 88,616 1.00 63,773 1.16 Premiums 24 36 Discounts (12 ) (20 ) Hedging adjustments 19 164 Total $ 88,647 $ 63,953 |
Callable and Noncallable Consolidated Obligations Bonds Outstanding | The following table presents the Bank’s consolidated obligation bonds outstanding by call feature. As of December 31, 2016 2015 Noncallable $ 83,487 $ 53,432 Callable 5,129 10,341 Total par value $ 88,616 $ 63,773 |
Summary of Callable Consolidated Obligation Bonds Outstanding, by Year of Contractual Maturity | The following table presents the Bank’s consolidated obligation bonds outstanding, by year of contractual maturity, or for callable consolidated obligation bonds, by next call date. As of December 31, 2016 2015 Due or callable in one year or less $ 70,232 $ 41,410 Due or callable after one year through two years 15,250 16,277 Due or callable after two years through three years 1,399 3,461 Due or callable after three years through four years 1,103 1,055 Due or callable after four years through five years 162 1,023 Due or callable after five years 470 547 Total par value $ 88,616 $ 63,773 |
Consolidated Obligation Discount Notes | The following table presents the Bank's participation in consolidated obligation discount notes. Book Value Par Value Weighted-average Interest Rate (%) As of December 31, 2016 $ 41,292 $ 41,334 0.48 As of December 31, 2015 $ 69,434 $ 69,481 0.27 |
Affordable Housing Program (Tab
Affordable Housing Program (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Assessments [Abstract] | |
Schedule of Activity in Affordable Housing Program Obligation | The following table presents a rollforward of the Bank's AHP liability. For the Years Ended December 31, 2016 2015 2014 Balance, beginning of year $ 63 $ 65 $ 74 AHP assessments 31 33 30 Subsidy usage, net (25 ) (35 ) (39 ) Balance, end of year $ 69 $ 63 $ 65 |
Capital and Mandatorily Redee41
Capital and Mandatorily Redeemable Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Capital [Abstract] | |
Schedule of Compliance With Regulatory Capital Requirements | The following table presents the Bank's compliance with the Finance Agency's regulatory capital rules and requirements. As of December 31, 2016 2015 Required Actual Required Actual Risk-based capital $ 1,701 $ 6,848 $ 1,621 $ 6,956 Total regulatory capital ratio 4.00 % 4.94 % 4.00 % 4.89 % Total regulatory capital (1) $ 5,547 $ 6,848 $ 5,690 $ 6,956 Leverage capital ratio 5.00 % 7.41 % 5.00 % 7.33 % Leverage capital $ 6,934 $ 10,273 $ 7,113 $ 10,433 ___________ (1) Total regulatory capital does not include accumulated other comprehensive income but does include mandatorily redeemable capital stock. |
Activity in Mandatorily Redeemable Capital Stock | The following table presents the activity in mandatorily redeemable capital stock. For the Years Ended December 31, 2016 2015 2014 Balance, beginning of year $ 14 $ 19 $ 24 Net reclassification from capital during the year 7 21 7 Repurchase/redemption of mandatorily redeemable capital stock (20 ) (26 ) (12 ) Balance, end of year $ 1 $ 14 $ 19 |
Amount of Mandatorily Redeemable Capital Stock by Year of Redemption | The following table presents the amount of mandatorily redeemable capital stock by year of redemption. The year of redemption in the table is the end of the five -year redemption period, or with respect to activity-based stock, the later of the expiration of the five -year redemption period or the activity’s maturity date. As of December 31, 2016 2015 Due in one year or less $ — $ 7 Due after one year through two years — 1 Due after three years through four years 1 — Due after four years through five years — 6 Total $ 1 $ 14 |
Accumulated Other Comprehensi42
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components Comprising Accumulated Other Comprehensive Income | The following table presents the components comprising accumulated other comprehensive income. Pension and Postretirement Benefits Noncredit Portion of Other-than- temporary Impairment Losses on Available-for- sale Securities Total Accumulated Other Comprehensive Income Balance, December 31, 2013 $ (13 ) $ 125 $ 112 Other comprehensive income before reclassifications: Net change in fair value — (10 ) (10 ) Actuarial loss (11 ) — (11 ) Reclassification from accumulated other comprehensive income to net income: Noncredit other-than-temporary impairment losses — 3 3 Amortization of pension and postretirement (1) 1 — 1 Net current period other comprehensive loss (10 ) (7 ) (17 ) Balance, December 31, 2014 (23 ) 118 95 Other comprehensive income before reclassifications: Net change in fair value — (28 ) (28 ) Actuarial gain 1 — 1 Reclassification from accumulated other comprehensive income to net income: Noncredit other-than-temporary impairment losses — 5 5 Amortization of pension and postretirement (1) 2 — 2 Net current period other comprehensive income (loss) 3 (23 ) (20 ) Balance, December 31, 2015 (20 ) 95 75 Other comprehensive income before reclassifications: Noncredit other-than-temporary impairment losses — (1 ) (1 ) Net change in fair value — 27 27 Actuarial loss (1 ) — (1 ) Reclassification from accumulated other comprehensive income to net income: Noncredit other-than-temporary impairment losses — 3 3 Amortization of pension and postretirement (1) 1 — 1 Net current period other comprehensive income — 29 29 Balance, December 31, 2016 $ (20 ) $ 124 $ 104 ____________ (1) Included in Compensation and benefits on the Statements of Income. |
Pension and Post Retirement B43
Pension and Post Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Multiemployer Plan | The following table presents information on the net pension costs and funded status of the Pentegra Plan. 2016 2015 2014 Net pension cost charged to compensation and benefit expense for the year ended December 31 $ 12 $ 11 $ 10 Pentegra Plan funded status as of July 1 (1) 104.12 % 107.01 % 111.44 % Bank's funded status as of the plan year end 105.51 % 108.82 % 114.16 % ____________ (1) The Pentegra Plan's funded status as of July 1 is preliminary and may increase because the plan's participants are permitted to make contributions through March 15 of the following year (i.e. through March 15, 2017 for the plan year ended June 30, 2016 and through March 15, 2016 for the plan year ended June 30, 2015 ). Contributions made before the March 15th deadline may be credited to the plan for the plan year ended June 30 of the previous year and included in the final valuation as of July 1 of the year the plan ended. The final funded status as of July 1 will not be available until the Form 5500 for the plan year July 1 through June 30 is filed. Form 5500 is due to be filed no later than April 2018 for the plan year July 1, 2016 through June 30, 2017 and April 2017 for the plan year July 1, 2015 through June 2016 . Form 5500 was filed in April 2016 for the plan year July 1, 2014 through June 30, 2015 . |
Derivatives and Hedging Activ44
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments | The following table presents the fair value of derivative instruments, including the effect of netting adjustments and cash collateral. For purposes of this disclosure, the derivative values include the fair value of derivatives and the related accrued interest. As of December 31, 2016 2015 Notional Amount of Derivatives Derivative Assets Derivative Liabilities Notional Amount of Derivatives Derivative Assets Derivative Liabilities Derivatives in hedging relationships: Interest-rate swaps $ 65,027 $ 256 $ 1,029 $ 80,290 $ 312 $ 1,467 Derivatives not designated as hedging instruments: Interest-rate swaps 1,158 9 31 3,008 10 74 Interest-rate caps or floors 15,000 17 13 16,500 15 10 Mortgage delivery commitments 12 — — — — — Total derivatives not designated as hedging instruments 16,170 26 44 19,508 25 84 Total derivatives before netting and collateral adjustments $ 81,197 282 1,073 $ 99,798 337 1,551 Netting adjustments and cash collateral (1) 73 (966 ) (161 ) (1,427 ) Derivative assets and derivative liabilities $ 355 $ 107 $ 176 $ 124 ___________ (1) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty. Cash collateral posted and related accrued interest was $1,061 and $1,293 as of December 31, 2016 and 2015 , respectively. Cash collateral received and related accrued interest was $22 and $27 as of December 31, 2016 and 2015 , respectively. |
Components of Net Gains on Derivatives and Hedging Activities | The following table presents the components of net gains on derivatives and hedging activities as presented on the Statements of Income. For the Years Ended December 31, 2016 2015 2014 Derivatives and hedged items in fair value hedging relationships: Interest-rate swaps $ 120 $ 269 $ 147 Derivatives not designated as hedging instruments: Interest-rate swaps 30 53 57 Interest-rate caps or floors (1 ) (2 ) (14 ) Net interest settlements (30 ) (59 ) (70 ) Total net losses related to derivatives not designated as hedging instruments (1 ) (8 ) (27 ) Net gains on derivatives and hedging activities $ 119 $ 261 $ 120 |
Gain (Losses) on Derivatives and Related Hedged Items Fair Value | The following tables present, by type of hedged item, the gains (losses) on derivatives and the related hedged items in fair value hedging relationships and the impact of those derivatives on the Bank’s net interest income. For the Year Ended December 31, 2016 Hedged Item Type Gains (Losses) on Derivative Gains (Losses) on Hedged Item Net Fair Value Hedge Ineffectiveness Effect of Derivatives on Net Interest Income (1) Advances $ 524 $ (393 ) $ 131 $ (529 ) Consolidated obligations: Bonds (154 ) 146 (8 ) 230 Discount notes 2 (5 ) (3 ) (3 ) Total $ 372 $ (252 ) $ 120 $ (302 ) ____________ (1) The net interest on derivatives in fair value hedge relationships is presented in the interest income or expense line item of the respective hedged item. For the Year Ended December 31, 2015 Hedged Item Type Gains (Losses) on Derivative Gains (Losses) on Hedged Item Net Fair Value Hedge Ineffectiveness Effect of Derivatives on Net Interest Income (1) Advances $ 448 $ (169 ) $ 279 $ (713 ) Consolidated obligations: Bonds (93 ) 81 (12 ) 469 Discount notes (6 ) 8 2 9 Total $ 349 $ (80 ) $ 269 $ (235 ) ____________ (1) The net interest on derivatives in fair value hedge relationships is presented in the interest income or expense line item of the respective hedged item. For the Year Ended December 31, 2014 Hedged Item Type Gains (Losses) on Derivative Gains (Losses) on Hedged Item Net Fair Value Hedge Ineffectiveness Effect of Derivatives on Net Interest Income (1) Advances $ (152 ) $ 297 $ 145 $ (875 ) Consolidated obligation bonds 135 (133 ) 2 497 Total $ (17 ) $ 164 $ 147 $ (378 ) ____________ (1) The net interest on derivatives in fair value hedge relationships is presented in the interest income or expense line item of the respective hedged item. |
Offsetting of derivative assets and liabilities | The following table presents the fair value of derivative instruments meeting or not meeting netting requirements, including the related collateral received from or pledged to counterparties. As of December 31, 2016 2015 Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Gross recognized amount: Uncleared derivatives $ 70 $ 370 $ 260 $ 1,159 Cleared derivatives 212 703 77 392 Total gross recognized amount 282 1,073 337 1,551 Gross amounts of netting adjustments and cash collateral: Uncleared derivatives (69 ) (263 ) (258 ) (1,035 ) Cleared derivatives 142 (703 ) 97 (392 ) Total gross amounts of netting adjustments and cash collateral 73 (966 ) (161 ) (1,427 ) Derivative assets and derivative liabilities: Uncleared derivatives 1 107 2 124 Cleared derivatives 354 — 174 — Total derivative assets and total derivative liabilities 355 107 176 124 Non-cash collateral received or pledged not offset- cannot be sold or repledged: (1) Uncleared derivatives — — 2 — Net unsecured amounts: (2) Uncleared derivatives 1 107 — 124 Cleared derivatives 354 — 174 — Total net unsecured amount $ 355 $ 107 $ 174 $ 124 ____________ (1) Collateral held with respect to derivatives with member institutions, in which the Bank is acting as an intermediary, represents the amount of eligible collateral physically held by or on behalf of the Bank or collateral assigned to the Bank, as evidenced by a written security agreement, and held by the member institution for the benefit of the Bank. (2) The Bank had net credit exposure of $346 and $170 as of December 31, 2016 and 2015 , respectively, due to instances where the Bank’s pledged collateral to a counterparty exceeds the Bank’s net derivative liability position. |
Estimated Fair Values (Tables)
Estimated Fair Values (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | Estimated Fair Value Measurements on a Recurring Basis. The following tables present, for each fair value hierarchy level, the Bank’s financial assets and liabilities that are measured at fair value on a recurring basis on its Statements of Condition. As of December 31, 2016 Fair Value Measurements Using Netting Adjustment (1) Level 1 Level 2 Level 3 Total Assets Trading securities: Government-sponsored enterprises debt obligations $ — $ 261 $ — $ — $ 261 State or local housing agency debt obligations — 1 — — 1 Total trading securities — 262 — — 262 Available-for-sale securities: Private-label residential MBS — — 1,345 — 1,345 Derivative assets: Interest-rate related — 282 — 73 355 Grantor trust (included in Other assets) 37 — — — 37 Total assets at fair value $ 37 $ 544 $ 1,345 $ 73 $ 1,999 Liabilities Derivative liabilities: Interest-rate related $ — $ 1,073 $ — $ (966 ) $ 107 Total liabilities at fair value $ — $ 1,073 $ — $ (966 ) $ 107 ____________ (1) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same clearing agents and/or counterparties. As of December 31, 2015 Fair Value Measurements Using Netting Adjustment (1) Level 1 Level 2 Level 3 Total Assets Trading securities: Government-sponsored enterprises debt obligations $ — $ 1,212 $ — $ — $ 1,212 Another FHLBank’s bond — 52 — — 52 State or local housing agency debt obligations — 1 — — 1 Total trading securities — 1,265 — — 1,265 Available-for-sale securities: Private-label residential MBS — — 1,662 — 1,662 Derivative assets: Interest-rate related — 337 — (161 ) 176 Grantor trust (included in Other assets) 31 — — — 31 Total assets at fair value $ 31 $ 1,602 $ 1,662 $ (161 ) $ 3,134 Liabilities Derivative liabilities: Interest-rate related $ — $ 1,551 $ — $ (1,427 ) $ 124 Total liabilities at fair value $ — $ 1,551 $ — $ (1,427 ) $ 124 ____________ (1) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same clearing agents and/or counterparties. |
Reconciliation of Available-For-Sale Securities Measured at Fair Value | The following table presents a reconciliation of available-for-sale securities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3). For the Years Ended December 31, 2016 2015 2014 Balance, beginning of year $ 1,662 $ 1,981 $ 2,299 Total (losses) gains realized and unrealized: (1) Included in net impairment losses recognized in earnings (3 ) (5 ) (3 ) Included in other comprehensive income 29 (23 ) (7 ) Accretion of credit losses in net interest income 53 42 34 Settlements (396 ) (333 ) (342 ) Balance, end of year $ 1,345 $ 1,662 $ 1,981 ____________ (1) Related to available-for-sale securities held at year end. |
Fair Value Measurements, Nonrecurring [Table Text Block] | The following table presents the fair value hierarchy and carrying value of all assets as of the last impairment date that were still held as of December 31, 2015 , for which a nonrecurring fair value adjustment was recorded during the period presented. The carrying value for each of the assets presented in the following table was less than $1 as of December 31, 2016. As of December 31, 2015 Fair Value Measurements Using Level 1 Level 2 Level 3 Total Mortgage loans held for portfolio $ — $ — $ 1 $ 1 Real estate owned (included in Other assets) — — 3 3 Total nonrecurring assets at fair value $ — $ — $ 4 $ 4 |
Carrying Values and Estimated Fair Values | The following tables present the carrying values and estimated fair values of the Bank’s financial instruments. As of December 31, 2016 Estimated Fair Value Carrying Value Total Level 1 Level 2 Level 3 Netting Adjustment (1) Assets: Cash and due from banks $ 1,815 $ 1,815 $ 1,815 $ — $ — $ — Interest bearing-deposits 1,106 1,106 — 1,106 — — Securities purchased under agreements to resell 1,386 1,386 — 1,386 — — Federal funds sold 7,770 7,770 — 7,770 — — Trading securities 262 262 — 262 — — Available-for-sale securities 1,345 1,345 — — 1,345 — Held-to-maturity securities 24,641 24,633 — 23,843 790 — Advances 99,077 99,062 — 99,062 — — Mortgage loans held for portfolio, net 523 569 — 569 — — Accrued interest receivable 171 171 — 171 — — Derivative assets 355 355 — 282 — 73 Grantor trust assets (included in Other assets) 37 37 37 — — — Liabilities: Interest-bearing deposits 1,118 1,118 — 1,118 — — Consolidated obligations, net: Discount notes 41,292 41,293 — 41,293 — — Bonds 88,647 88,768 — 88,768 — — Mandatorily redeemable capital stock 1 1 1 — — — Accrued interest payable 128 128 — 128 — — Derivative liabilities 107 107 — 1,073 — (966 ) ____________ (1) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same clearing agents and/or counterparties. As of December 31, 2015 Estimated Fair Value Carrying Value Total Level 1 Level 2 Level 3 Netting Adjustment (1) Assets: Cash and due from banks $ 1,751 $ 1,751 $ 1,751 $ — $ — $ — Interest bearing-deposits 1,088 1,088 — 1,088 — — Securities purchased under agreements to resell 2,500 2,500 — 2,500 — — Federal funds sold 5,421 5,421 — 5,421 — — Trading securities 1,265 1,265 — 1,265 — — Available-for-sale securities 1,662 1,662 — — 1,662 — Held-to-maturity securities 23,239 23,263 — 22,179 1,084 — Advances 104,168 104,021 — 104,021 — — Mortgage loans held for portfolio, net 584 647 — 646 1 — Accrued interest receivable 171 171 — 171 — — Derivative assets 176 176 — 337 — (161 ) Grantor trust assets (included in Other assets) 31 31 31 — — — Liabilities: Interest-bearing deposits 1,084 1,084 — 1,084 — — Consolidated obligations, net: Discount notes 69,434 69,432 — 69,432 — — Bonds 63,953 63,940 — 63,940 — — Mandatorily redeemable capital stock 14 14 14 — — — Accrued interest payable 127 127 — 127 — — Derivative liabilities 124 124 — 1,551 — (1,427 ) ____________ (1) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same clearing agents and/or counterparties. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Off Balance Sheet Commitments [Table Text Block] | The following table presents the Bank’s outstanding commitments, which represent off-balance sheet obligations. As of December 31, 2016 2015 Expire Within One Year Expire After One Year Total Expire Within One Year Expire After One Year Total Standby letters of credit (1) $ 10,934 $ 21,734 $ 32,668 $ 8,693 $ 23,823 $ 32,516 Commitments to fund additional advances 100 200 300 207 100 307 Unsettled consolidated obligation discount notes, at par (2) — — — 100 — 100 Unsettled consolidated obligation bonds, at par (2) 15 — 15 25 — 25 Commitments to purchase mortgage loans 12 — 12 — — — ____________ (1) "Expire Within One Year" includes 12 standby letters of credit for a total of $34 and 11 standby letters of credit for a total of $29 as of December 31, 2016 and 2015 , respectively, that have no stated maturity date and are subject to renewal on an annual basis. (2) Expiration is based on settlement period rather than underlying contractual maturity of consolidated obligations. |
Transactions with Shareholders
Transactions with Shareholders (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Transactions With Shareholders [Abstract] | |
Schedule of Transactions with Shareholders [Table Text Block] | Shareholder Concentrations. The Bank considers shareholder concentration as members or non-members with regulatory capital stock outstanding in excess of 10 percent of the Bank's total regulatory capital stock. The following tables present transactions with shareholders whose holdings of regulatory capital stock exceed 10 percent of total regulatory capital stock outstanding. As of December 31, 2016 Regulatory Capital Stock Outstanding Percent of Total Regulatory Capital Stock Outstanding Par Value of Advances Percent of Total Par Value Advances Interest-bearing Deposits Percent of Total Interest-bearing Deposits Capital One, National Association $ 745 15.03 $ 17,176 17.48 $ 16 1.41 Navy Federal Credit Union 589 11.88 13,495 13.73 156 13.93 Bank of America, National Association 504 10.17 11,511 11.71 — 0.01 As of December 31, 2015 Regulatory Capital Stock Outstanding Percent of Total Regulatory Capital Stock Outstanding Par Value of Advances Percent of Total Par Value Advances Interest-bearing Deposits Percent of Total Interest-bearing Deposits Capital One, National Association $ 869 16.99 $ 20,095 19.54 $ 17 1.55 Navy Federal Credit Union 643 12.57 14,773 14.36 — 0.01 Bank of America, National Association 579 11.31 13,262 12.89 — 0.01 |
Transaction with Other FHLBanks
Transaction with Other FHLBanks (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Transactions with Other FHLBanks [Abstract] | |
Schedule of Loans to and From Other Federal Home Loan Banks | The following table presents the cash flow activities for loans to and borrowings from other FHLBanks. For the Years Ended December 31, 2016 2015 2014 Investing activities: Loans made to other FHLBanks $ (1,010 ) $ (11,759 ) $ (990 ) Principal collected on loans made to other FHLBanks 1,010 11,759 990 Net change in loans made to other FHLBanks $ — $ — $ — Financing activities: Proceeds from short-term borrowings from other FHLBanks $ — $ 927 $ 1,038 Payments of short-term borrowings from other FHLBanks — (927 ) (1,038 ) Net change in borrowings from other FHLBanks $ — $ — $ — |
Nature of Operations (Details)
Nature of Operations (Details) | Dec. 31, 2016bank |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Federal Home Loan Banks | 11 |
Summary of Significant Accoun50
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation and amortization | $ 64 | $ 66 | |
Depreciation and amortization expense | $ 4 | 4 | $ 4 |
Joint Capital Enhancement Agreement percentage | 20.00% | ||
Other Assets [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Real estate owned, acquired through foreclosure | $ 2 | 9 | |
Automobiles and Computer Hardware [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of premises and equipment (in years) | 3 years | ||
Office Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of premises and equipment (in years) | 8 years | ||
Office Furniture and Building Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of premises and equipment (in years) | 10 years | ||
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of premises and equipment (in years) | 40 years | ||
Computer Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of premises and equipment (in years) | 5 years | ||
Depreciation and amortization expense | $ 3 | 5 | $ 5 |
Gross carrying amount of computer software capitalized | 55 | 58 | |
Accumulated amortization of computer software capitalized | $ 48 | $ 49 |
Recently Issued and Adopted A51
Recently Issued and Adopted Accounting Guidance (Details) | Dec. 31, 2015USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Unamortized Debt Issuance Expense | $ 7 |
Consolidated Obligation Bonds [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Unamortized Debt Issuance Expense | 5 |
Discount Notes [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Unamortized Debt Issuance Expense | $ 2 |
Cash and Due from Banks (Detail
Cash and Due from Banks (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash and Cash Equivalents [Line Items] | ||
Average collected cash balances | $ 7 | $ 8 |
Trading Securities (Trading Sec
Trading Securities (Trading Securities by Major Security Type) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading securities | $ 262 | $ 1,265 | |
Government-sponsored enterprises debt obligations [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading securities | 261 | 1,212 | |
Another FHLBank’s bond [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading securities | [1] | 0 | 52 |
State or local housing agency debt obligations [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading securities | $ 1 | $ 1 | |
[1] | The Federal Home Loan Bank of Chicago is the primary obligor of this consolidated obligation bond. |
Trading Securities (Net losses
Trading Securities (Net losses on Trading Securities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Trading Securities [Abstract] | |||
Net losses on trading securities | $ (8) | $ (61) | $ (53) |
Net losses on trading securities that matured during the year | (22) | 0 | (7) |
Net losses on trading securities | $ (30) | $ (61) | $ (60) |
Available-for-sale Securities55
Available-for-sale Securities (Available-for-sale by Major Security Type) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost of available-for-sale securities | $ 1,221 | $ 1,567 |
Available-for-sale Securities | 1,345 | 1,662 |
Residential Mortgage Backed Securities [Member] | Mortgage-backed Securities, Private-label residential [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost of available-for-sale securities | 1,221 | 1,567 |
Other-than-temporary Impairment Recognized in Accumulated Other Comprehensive Income | 6 | 19 |
Gross unrealized gains on available-for-sale securities | 130 | 114 |
Gross unrealized losses on available-for-sale securities | 0 | 0 |
Available-for-sale Securities | $ 1,345 | $ 1,662 |
Available-for-sale Securities56
Available-for-sale Securities (Summary of Available-for-sale Securities in a Continuous Unrealized Loss Position) (Details) - Residential Mortgage Backed Securities [Member] - Mortgage-backed Securities, Private-label residential [Member] $ in Millions | Dec. 31, 2016USD ($)positions | Dec. 31, 2015USD ($)positions |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of available-for-sale securities in unrealzed loss position for less than 12 months | positions | 1 | 3 |
Number of available-for-sale securities in unrealzed loss position for 12 months or more | positions | 10 | 10 |
Number of available-for-sale securities in unrealzed loss position | positions | 11 | 13 |
Estimated fair value of available-for-sale securities in unrealized loss position for less than 12 months | $ 14 | $ 107 |
Estimated fair value of available-for-sale securities in unrealized loss position for 12 months or more | 189 | 247 |
Estimated fair value of available-for-sale securities in unrealized loss position | 203 | 354 |
Available For Sale Securities Continuous Unrealized Loss Position Less Than 12 Months Aggregate Losses Accumulated In Investments | 0 | 2 |
Available For Sale Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Losses Accumulated In Investments | 6 | 17 |
Gross unrealized losses on available-for-sale securities | $ 6 | $ 19 |
Available-for-sale Securities A
Available-for-sale Securities Available-for-sale Securities (Interest Rate Payment Terms) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost of available-for-sale securities | $ 1,221 | $ 1,567 |
Variable-rate [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost of available-for-sale securities | 1,202 | 1,540 |
Fixed-rate [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost of available-for-sale securities | $ 19 | $ 27 |
Available-for-sale Securities58
Available-for-sale Securities (Summary of Available-for-sale MBS issued by Members or Affiliates of Members) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost of available-for-sale securities | $ 1,221 | $ 1,567 |
Available-for-sale Securities | 1,345 | 1,662 |
Bank of America Corporation, Charlotte, NC [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost of available-for-sale securities | 792 | 1,037 |
Other-than-temporary Impairment Recognized in Accumulated Other Comprehensive Income | 5 | 16 |
Gross unrealized gains on available-for-sale securities | 102 | 77 |
Gross unrealized losses on available-for-sale securities | 0 | 0 |
Available-for-sale Securities | $ 889 | $ 1,098 |
Held-to-maturity Securities (He
Held-to-maturity Securities (Held-to-maturity by Major Security Type) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of held-to-maturity securities | $ 24,641 | $ 23,239 |
Held-to-maturity securities Gross Unrealized Gains | 56 | 96 |
Gross Unrealized Losses on held-to-maturity securities | 64 | 72 |
Held-to-maturity securities, fair value | 24,633 | 23,263 |
State or local housing agency debt obligations [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of held-to-maturity securities | 76 | 76 |
Held-to-maturity securities Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses on held-to-maturity securities | 0 | 0 |
Held-to-maturity securities, fair value | 76 | 76 |
Government-sponsored enterprises debt obligations [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of held-to-maturity securities | 6,041 | 5,693 |
Held-to-maturity securities Gross Unrealized Gains | 3 | 0 |
Gross Unrealized Losses on held-to-maturity securities | 5 | 12 |
Held-to-maturity securities, fair value | 6,039 | 5,681 |
Residential Mortgage Backed Securities [Member] | Mortgage-backed Securities, Private-label residential [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of held-to-maturity securities | 790 | 1,093 |
Held-to-maturity securities Gross Unrealized Gains | 5 | 4 |
Gross Unrealized Losses on held-to-maturity securities | 5 | 13 |
Held-to-maturity securities, fair value | 790 | 1,084 |
Single Family [Member] | U.S. agency obligations-guaranteed single-family residential [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of held-to-maturity securities | 209 | 279 |
Held-to-maturity securities Gross Unrealized Gains | 2 | 4 |
Gross Unrealized Losses on held-to-maturity securities | 0 | 0 |
Held-to-maturity securities, fair value | 211 | 283 |
Single Family [Member] | Mortgage-backed Securities, Government- sponsored enterprises [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of held-to-maturity securities | 10,752 | 11,958 |
Held-to-maturity securities Gross Unrealized Gains | 44 | 88 |
Gross Unrealized Losses on held-to-maturity securities | 43 | 31 |
Held-to-maturity securities, fair value | 10,753 | 12,015 |
Multifamily [Member] | Mortgage-backed Securities, Government- sponsored enterprises [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of held-to-maturity securities | 6,773 | 4,140 |
Held-to-maturity securities Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses on held-to-maturity securities | 11 | 16 |
Held-to-maturity securities, fair value | $ 6,764 | $ 4,124 |
Held-to-maturity Securities (Su
Held-to-maturity Securities (Summary of Held-to-maturity Securities in a Continuous Unrealized Loss Postion) (Details) $ in Millions | Dec. 31, 2016USD ($)positions | Dec. 31, 2015USD ($)positions |
Schedule of Held-to-maturity Securities [Line Items] | ||
Number of unrealized loss positions held less than 12 months | positions | 114 | 121 |
Number of unrealized loss positions held more than 12 months | positions | 141 | 83 |
Total number of unrealized loss positions | positions | 255 | 204 |
Estimated fair value of unrealized loss positions held less than 12 months | $ 9,502 | $ 10,855 |
Estimated fair value of unrealized loss positions held 12 months or more | 4,178 | 2,653 |
Total estimated fair value of positions in an unrealized loss | 13,680 | 13,508 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 33 | 39 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 31 | 33 |
Total Gross Unrealized Loss | $ 64 | $ 72 |
Government-sponsored enterprises debt obligations [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Number of unrealized loss positions held less than 12 months | positions | 10 | 20 |
Number of unrealized loss positions held more than 12 months | positions | 0 | 3 |
Total number of unrealized loss positions | positions | 10 | 23 |
Estimated fair value of unrealized loss positions held less than 12 months | $ 2,532 | $ 4,535 |
Estimated fair value of unrealized loss positions held 12 months or more | 0 | 745 |
Total estimated fair value of positions in an unrealized loss | 2,532 | 5,280 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 5 | 7 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 5 |
Total Gross Unrealized Loss | $ 5 | $ 12 |
Mortgage-backed Securities, Private-label residential [Member] | Residential Mortgage Backed Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Number of unrealized loss positions held less than 12 months | positions | 6 | 29 |
Number of unrealized loss positions held more than 12 months | positions | 56 | 47 |
Total number of unrealized loss positions | positions | 62 | 76 |
Estimated fair value of unrealized loss positions held less than 12 months | $ 10 | $ 407 |
Estimated fair value of unrealized loss positions held 12 months or more | 432 | 428 |
Total estimated fair value of positions in an unrealized loss | 442 | 835 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 2 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 5 | 11 |
Total Gross Unrealized Loss | $ 5 | $ 13 |
Single Family [Member] | Mortgage-backed Securities, Government-sponsored enterprises [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Number of unrealized loss positions held less than 12 months | positions | 46 | 41 |
Number of unrealized loss positions held more than 12 months | positions | 63 | 8 |
Total number of unrealized loss positions | positions | 109 | 49 |
Estimated fair value of unrealized loss positions held less than 12 months | $ 2,813 | $ 3,233 |
Estimated fair value of unrealized loss positions held 12 months or more | 2,206 | 443 |
Total estimated fair value of positions in an unrealized loss | 5,019 | 3,676 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 22 | 21 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 21 | 10 |
Total Gross Unrealized Loss | $ 43 | $ 31 |
Multifamily [Member] | Mortgage-backed Securities, Government-sponsored enterprises [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Number of unrealized loss positions held less than 12 months | positions | 52 | 31 |
Number of unrealized loss positions held more than 12 months | positions | 22 | 25 |
Total number of unrealized loss positions | positions | 74 | 56 |
Estimated fair value of unrealized loss positions held less than 12 months | $ 4,147 | $ 2,680 |
Estimated fair value of unrealized loss positions held 12 months or more | 1,540 | 1,037 |
Total estimated fair value of positions in an unrealized loss | 5,687 | 3,717 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 6 | 9 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 5 | 7 |
Total Gross Unrealized Loss | $ 11 | $ 16 |
Held-to-maturity Securities (Re
Held-to-maturity Securities (Redemption Terms) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of held-to-maturity securities | $ 24,641 | $ 23,239 |
Estimated fair value of held-to-maturity securites | 24,633 | 23,263 |
Non-mortgage backed securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of held -to-maturity securities due in one year or less | 2,454 | 651 |
Amortized cost of held-to-maturity securities due after one year through five years | 3,487 | 5,118 |
Amortized Cost of held-to-maturity securities due after five years through ten years | 176 | 0 |
Amortized cost of held-to-maturity securities | 6,117 | 5,769 |
Estimated fair value of held-to-maturity securities due in one year or less | 2,455 | 651 |
Estimated fair value of held-to-maturity securities due after one year through five years | 3,484 | 5,106 |
Estimated fair value of Held-to-maturity securities due after five years through ten years | 176 | 0 |
Estimated fair value of held-to-maturity securites | 6,115 | 5,757 |
Mortgage-backed securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of held-to-maturity securities | 18,524 | 17,470 |
Estimated fair value of held-to-maturity securites | $ 18,518 | $ 17,506 |
Held-to-maturity Securities (In
Held-to-maturity Securities (Interest-rate Payment Terms) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of held-to-maturity securities | $ 24,641 | $ 23,239 |
Non-mortgage backed securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of held-to-maturity securities | 6,117 | 5,769 |
Mortgage-backed securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of held-to-maturity securities | 18,524 | 17,470 |
Fixed-rate [Member] | Non-mortgage backed securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of held-to-maturity securities | 2,413 | 1,915 |
Fixed-rate [Member] | Mortgage-backed securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of held-to-maturity securities | 2,438 | 2,949 |
Variable-rate [Member] | Non-mortgage backed securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of held-to-maturity securities | 3,704 | 3,854 |
Variable-rate [Member] | Mortgage-backed securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of held-to-maturity securities | $ 16,086 | $ 14,521 |
Held-to-maturity Securities Hel
Held-to-maturity Securities Held-to-maturity Securities (Summary of Held-to-maturity MBS issued by Members or Affiliated of Members) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | $ 24,641 | $ 23,239 |
Held-to-maturity securities Gross Unrealized Gains | 56 | 96 |
Gross Unrealized Losses on held-to-maturity securities | 64 | 72 |
Held-to-maturity securities, fair value | 24,633 | 23,263 |
Mortgage-backed Securities, Private-label residential [Member] | Bank of America Corporation, Charlotte, NC [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | 177 | 286 |
Held-to-maturity securities Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses on held-to-maturity securities | 2 | 5 |
Held-to-maturity securities, fair value | $ 175 | $ 281 |
Other-than-temporary Impairme64
Other-than-temporary Impairment (Housing Price Forecast Narrative) (Details) | Dec. 31, 2016 |
Schedule of Projected Home Price Recovery Ranges [Line Items] | |
Number of Third Party Models to Assess Recovery of Amortized Cost Basis of Securities | 2 |
Projected Change In The Twelve Month Housing Price Percentage Rate, Maximum Decrease | 3.00% |
Projected Change In The Twelve Month Housing Price Percentage Rate, Maximum Increase | 10.00% |
Projected Change In The Short-term Housing Price Percentage Rate, Maximum Decrease In Vast Majority Of Markets | 2.00% |
Projected Change In The Short-term Housing Price Percentage Rate, Maximum Increase In Vast Majority Of Markets | 6.00% |
Minimum [Member] | |
Schedule of Projected Home Price Recovery Ranges [Line Items] | |
Core Based Statistical Areas Current Requirements Number of Urban Areas | 1 |
Minimum number of people under CBSA | 10,000 |
Other-than-temporary Impairme65
Other-than-temporary Impairment (Summary of Significant Inputs) (Details) - Mortgage-backed Securities, Private-label residential [Member] - Residential Mortgage Backed Securities [Member] | 12 Months Ended | |
Dec. 31, 2016 | [1] | |
Other-than-Temporary Impairment, Credit Losses Recognized [Abstract] | ||
Significant Inputs Weighted Average Percentage Rate, Prepayment Rate | 12.31% | |
Significant Inputs Weighted Average Percentage Rate, Default Rate | 16.76% | |
Significant Inputs Weighted Average Percentage Rate, Loss Severities | 38.95% | |
Significant Inputs Weighted Average Percentage Rate Current Credit Enhancement | 0.02% | |
Alt- A [Member] | ||
Other-than-Temporary Impairment, Credit Losses Recognized [Abstract] | ||
Significant Inputs Weighted Average Percentage Rate, Prepayment Rate | 12.13% | |
Significant Inputs Weighted Average Percentage Rate, Default Rate | 17.56% | |
Significant Inputs Weighted Average Percentage Rate, Loss Severities | 40.22% | |
Significant Inputs Weighted Average Percentage Rate Current Credit Enhancement | 0.00% | |
Prime [Member] | ||
Other-than-Temporary Impairment, Credit Losses Recognized [Abstract] | ||
Significant Inputs Weighted Average Percentage Rate, Prepayment Rate | 15.02% | |
Significant Inputs Weighted Average Percentage Rate, Default Rate | 4.62% | |
Significant Inputs Weighted Average Percentage Rate, Loss Severities | 19.73% | |
Significant Inputs Weighted Average Percentage Rate Current Credit Enhancement | 0.24% | |
[1] | The classification of securities is based on current characteristics and performance, which may be different from the securities’ classification as determined by the originator at the time of origination. |
Other-than-temporary Impairme66
Other-than-temporary Impairment (Roll-forward of Credit Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Roll-Forward Cumulative Credit Losses Recognized | |||
Balance, beginning of year | $ 505 | $ 542 | $ 574 |
Amount related to credit loss for which an other-than-temporary impairment was previously recognized | 3 | 5 | 3 |
Increase in cash flows expected to be collected, (accreted as interest income over the remaining lives of the applicable securities) | (53) | (42) | (35) |
Balance, end of year | $ 455 | $ 505 | $ 542 |
Advances (Redemption Terms) (De
Advances (Redemption Terms) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Advances [Abstract] | ||
Overdrawn demand deposit accounts | $ 0 | $ 16 |
Due in one year or less | 47,325 | 46,673 |
Due after one year through two years | 8,244 | 12,747 |
Due after two years through three years | 5,904 | 6,360 |
Due after three years through four years | 5,859 | 2,994 |
Due after four years through five years | 11,846 | 4,616 |
Due after five years | 19,110 | 29,458 |
Federal Home Loan Bank Advances at par value | 98,288 | 102,864 |
Discount on AHP advances | (5) | (6) |
Discount on EDGE advances | (4) | (4) |
Hedging adjustments | 798 | 1,315 |
Deferred commitment fees | 0 | (1) |
Federal Home Loan Bank Advances | $ 99,077 | $ 104,168 |
Advances (Advances by Year of C
Advances (Advances by Year of Contractual Maturity or Next Call Date for Callable Advances) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Advances [Abstract] | ||
Overdrawn demand deposit accounts | $ 0 | $ 16 |
Due or callable in one year or less | 72,404 | 71,243 |
Due or callable after one year through two years | 7,680 | 11,593 |
Due or callable after two years through three years | 3,740 | 5,545 |
Due or callable after three years through four years | 2,289 | 2,214 |
Due or callable after four years through five years | 4,570 | 2,371 |
Due or callable after five years | 7,605 | 9,882 |
Federal Home Loan Bank Advances at par value | $ 98,288 | $ 102,864 |
Advances (Advances by Year of69
Advances (Advances by Year of Contracutal Maturity for Convertible Advances) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Advances [Abstract] | ||
Overdrawn demand deposit accounts | $ 0 | $ 16 |
Due or convertible in one year or less | 47,935 | 48,743 |
Due or convertible after one year through two years | 7,724 | 11,434 |
Due or convertible after two years through three years | 5,943 | 5,768 |
Due or convertible after three years through four years | 5,867 | 3,020 |
Due or convertible after four years through five years | 11,866 | 4,609 |
Due or convertible after five years | 18,953 | 29,274 |
Federal Home Loan Bank Advances at par value | $ 98,288 | $ 102,864 |
Advances (Interest-rate Payment
Advances (Interest-rate Payment Terms) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Advances [Abstract] | ||
Fixed-rate, due in one year or less | $ 38,597 | $ 32,011 |
Fixed-rate, due after one year | 24,528 | 27,051 |
Total fixed-rate | 63,125 | 59,062 |
Variable-rate, due in one year or less | 8,728 | 14,678 |
Variable-rate, due after one year | 26,435 | 29,124 |
Total variable-rate | 35,163 | 43,802 |
Federal Home Loan Bank Advances at par value | $ 98,288 | $ 102,864 |
Advances (Narrative) (Details)
Advances (Narrative) (Details) $ in Millions | Dec. 31, 2016USD ($)Institutions | Dec. 31, 2015USD ($)Institutions |
Advances (Textual) [Abstract] | ||
Federal Home Loan Bank, Advances, Interest Rate on Affordable Housing Program Subsidized Loans | 0.00% | |
Federal Home Loan Bank Advances at par value | $ 98,288 | $ 102,864 |
Number of Top Advances Borrowers | Institutions | 10 | 10 |
Federal Home Loan Bank Advances to Ten Largest Borrowers | $ 67,493 | $ 75,842 |
Federal Home Loan Bank Advances Ten Largest Borrowers Percent of Total | 68.70% | 73.70% |
Allowance for credit losses on advances | $ 0 | $ 0 |
Advances past due | 0 | 0 |
Federal Home Loan Bank, Advances, Callable Option [Member] | ||
Advances (Textual) [Abstract] | ||
Federal Home Loan Bank Advances at par value | 27,459 | 25,565 |
Federal Home Loan Bank, Advances, Convertible Option [Member] | ||
Advances (Textual) [Abstract] | ||
Federal Home Loan Bank Advances at par value | $ 1,497 | $ 2,394 |
Minimum [Member] | ||
Advances (Textual) [Abstract] | ||
Federal Home Loan Bank advances interest rate | 0.00% | |
Maximum [Member] | ||
Advances (Textual) [Abstract] | ||
Federal Home Loan Bank advances interest rate | 7.55% |
Mortgage Loans Held for Portf72
Mortgage Loans Held for Portfolio (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | $ 525 | $ 587 |
Premiums | 2 | 2 |
Discounts | (3) | (3) |
Total | 524 | 586 |
Fixed-rate medium-term residential mortgage loans [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | $ 40 | 66 |
Mortgage loans on real estate, original contract terms | 15 years | |
Fixed-rate long-term residential mortgage loans [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | $ 485 | 521 |
Conventional loans [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | 492 | 546 |
Government-guaranteed or insured mortgage loans [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | $ 33 | $ 41 |
Allowance for Credit Losses (Ro
Allowance for Credit Losses (Rollforward of Allowance for Credit Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Balance, beginning of year | $ 2 | ||
Reversal of provision for credit losses | (1) | $ (1) | $ (5) |
Balance, end of year | 1 | 2 | |
Residential Portfolio Segment [Member] | Conventional Mortgage Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Balance, beginning of year | 2 | 3 | 11 |
Reversal of provision for credit losses | (1) | (1) | (5) |
Charge-offs | 0 | 0 | (3) |
Balance, end of year | $ 1 | $ 2 | $ 3 |
Allowance for Credit Losses (Mo
Allowance for Credit Losses (Mortgage Loan Portfolio by Impairment Methodology) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Total allowance for credit losses | $ 1 | $ 2 | ||||
Residential Portfolio Segment [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Total recorded investment | 526 | [1] | 589 | [2] | ||
Residential Portfolio Segment [Member] | Conventional Mortgage Loans [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for credit losses, collectively evaluated for impairment | 1 | 2 | ||||
Total allowance for credit losses | 1 | 2 | $ 3 | $ 11 | ||
Recorded investment, individually evaluated for impairment | 12 | 15 | ||||
Recorded investment, collectively evaluated for impairment | 481 | 532 | ||||
Total recorded investment | $ 493 | [1] | $ 547 | [2] | ||
[1] | The difference between the recorded investment and the carrying value of total mortgage loans of $2 relates to accrued interest. | |||||
[2] | The difference between the recorded investment and the carrying value of total mortgage loans of $3 relates to accrued interest. |
Allowance for Credit Losses (Cr
Allowance for Credit Losses (Credit Quality Indicators) (Details) - Residential Portfolio Segment [Member] - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total past due mortgage loans | $ 38 | $ 48 | |||
Total current mortgage loans | 488 | 541 | |||
Total recorded investment | 526 | [1] | 589 | [2] | |
In process foreclosure | [3] | $ 7 | $ 10 | ||
Seriously delinquent rate | [4] | 2.53% | 3.55% | ||
Past due 90 days or more and still accruing interest | [5] | $ 1 | $ 3 | ||
Mortgage loans on nonaccrual status | [6] | 12 | 18 | ||
Accrued Interest on Mortgage Loans | 2 | 3 | |||
Conventional Mortgage Loans [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total past due mortgage loans | 32 | 40 | |||
Total current mortgage loans | 461 | 507 | |||
Total recorded investment | 493 | [1] | 547 | [2] | |
In process foreclosure | [3] | $ 6 | $ 9 | ||
Seriously delinquent rate | [4] | 2.44% | 3.32% | ||
Past due 90 days or more and still accruing interest | [5] | $ 0 | $ 0 | ||
Mortgage loans on nonaccrual status | [6] | 12 | 18 | ||
Troubled debt restructurings | 12 | 15 | |||
Government-guaranteed or insured mortgage loans [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total past due mortgage loans | 6 | 8 | |||
Total current mortgage loans | 27 | 34 | |||
Total recorded investment | 33 | [1] | 42 | [2] | |
In process foreclosure | [3] | $ 1 | $ 1 | ||
Seriously delinquent rate | [4] | 3.75% | 6.65% | ||
Past due 90 days or more and still accruing interest | [5] | $ 1 | $ 3 | ||
Mortgage loans on nonaccrual status | [6] | 0 | 0 | ||
Performing Financial Instruments [Member] | Conventional Mortgage Loans [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Troubled debt restructurings | 10 | 13 | |||
Nonperforming Financial Instruments [Member] | Conventional Mortgage Loans [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Troubled debt restructurings | 2 | 2 | |||
Financing Receivables, 30 to 59 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total past due mortgage loans | 21 | 21 | |||
Financing Receivables, 30 to 59 Days Past Due [Member] | Conventional Mortgage Loans [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total past due mortgage loans | 17 | 17 | |||
Financing Receivables, 30 to 59 Days Past Due [Member] | Government-guaranteed or insured mortgage loans [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total past due mortgage loans | 4 | 4 | |||
Financing Receivables, 60 to 89 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total past due mortgage loans | 4 | 6 | |||
Financing Receivables, 60 to 89 Days Past Due [Member] | Conventional Mortgage Loans [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total past due mortgage loans | 3 | 5 | |||
Financing Receivables, 60 to 89 Days Past Due [Member] | Government-guaranteed or insured mortgage loans [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total past due mortgage loans | 1 | 1 | |||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total past due mortgage loans | 13 | 21 | |||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Conventional Mortgage Loans [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total past due mortgage loans | 12 | 18 | |||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Government-guaranteed or insured mortgage loans [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total past due mortgage loans | $ 1 | $ 3 | |||
[1] | The difference between the recorded investment and the carrying value of total mortgage loans of $2 relates to accrued interest. | ||||
[2] | The difference between the recorded investment and the carrying value of total mortgage loans of $3 relates to accrued interest. | ||||
[3] | Includes mortgage loans where the decision of foreclosure or similar alternative, such as a pursuit of deed-in lieu, has been reported. Mortgage loans in the process of foreclosure are included in past due or current mortgage loans depending on their delinquency status. | ||||
[4] | Mortgage loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total mortgage loan portfolio segment. | ||||
[5] | Mortgage loans insured or guaranteed by the Federal Housing Administration or the Department of Veterans Affairs. | ||||
[6] | Represents mortgage loans with contractual principal or interest payments 90 days or more past due and not accruing interest. |
Allowance for Credit Losses (Na
Allowance for Credit Losses (Narrative) (Details) - Residential Portfolio Segment [Member] - Conventional Mortgage Loans [Member] | 12 Months Ended |
Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Troubled Debt Restructuring Modification Period | 36 months |
Target housing expense ratio | 31.00% |
Maximum loan reamortization period | 40 years |
Incremental interest rate reduction | 0.125% |
Interest rate floor on loan modifications | 3.00% |
Troubled Debt Restructuring Modification Interest Rate Reduction Period if Expense Ratio is Not Met | 36 months |
Consolidated Obligations (Narra
Consolidated Obligations (Narrative) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2016USD ($)bank | Dec. 31, 2015USD ($) | |
Schedule of Short-term and Long-term Debt [Line Items] | ||
Number of Federal Home Loan Banks | bank | 11 | |
Par Value FHLBanks' Outstanding Consolidated Obligations | $ 989,311 | $ 905,202 |
Unpledged qualifying assets held by the Bank | 138,097 | 141,848 |
Federal Home Loan Bank, Consolidated Obligations | $ 129,939 | $ 133,387 |
Maximum contractual maturity period of discount notes (up to one year) | 1 year | |
Other FHLBanks [Member] | ||
Schedule of Short-term and Long-term Debt [Line Items] | ||
Number of Federal Home Loan Banks | bank | 10 |
Consolidated Obligations (Inter
Consolidated Obligations (Interest-rate Payment Terms) (Details) - Consolidated Obligation Bonds [Member] - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Consolidated Obligation Bonds by Interest-Rate Payment [Line Items] | ||
Bonds par value | $ 88,616 | $ 63,773 |
Fixed-rate [Member] | ||
Consolidated Obligation Bonds by Interest-Rate Payment [Line Items] | ||
Bonds par value | 23,674 | 40,512 |
Step up/down [Member] | ||
Consolidated Obligation Bonds by Interest-Rate Payment [Line Items] | ||
Bonds par value | 2,534 | 4,239 |
Simple variable-rate [Member] | ||
Consolidated Obligation Bonds by Interest-Rate Payment [Line Items] | ||
Bonds par value | $ 62,408 | $ 19,022 |
Consolidated Obligations (Redem
Consolidated Obligations (Redemption Terms) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Federal Home Loan Bank, Consolidated Obligations, Bonds | $ 88,647 | $ 63,953 |
Consolidated Obligation Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Bonds, Due in one year or less | 65,378 | 32,559 |
Bonds, Due after one year through two years | 17,065 | 17,132 |
Bonds, Due after two years through three years | 1,849 | 5,959 |
Bonds, Due after three years through four years | 1,482 | 2,124 |
Bonds, Due after four years through five years | 1,117 | 1,975 |
Bonds, Due after five years | 1,725 | 4,024 |
Bonds par value | 88,616 | 63,773 |
Premiums | 24 | 36 |
Discounts | (12) | (20) |
Hedging adjustments | 19 | 164 |
Federal Home Loan Bank, Consolidated Obligations, Bonds | $ 88,647 | $ 63,953 |
Bonds, Due in one year or less, weighted average interest rate | 0.91% | 0.74% |
Bonds, Due after one year through two years, weighted average interest rate | 1.05% | 1.41% |
Bonds, Due after two years through three years, weighted average interest rate | 1.67% | 1.63% |
Bonds, Due after three years through four years, weighted average interest rate | 1.68% | 1.67% |
Bonds, Due after four years through five years, weighted average interest rate | 1.58% | 1.72% |
Bonds, Due after five years, weighted average interest rate | 2.37% | 2.18% |
Total, weighted average interest rate | 1.00% | 1.16% |
Consolidated Obligations (Bonds
Consolidated Obligations (Bonds by Callable Feature) (Details) - Consolidated Obligation Bonds [Member] - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Bonds par value | $ 88,616 | $ 63,773 |
Noncallable [Member] | ||
Debt Instrument [Line Items] | ||
Bonds par value | 83,487 | 53,432 |
Callable [Member] | ||
Debt Instrument [Line Items] | ||
Bonds par value | $ 5,129 | $ 10,341 |
Consolidated Obligations (Bon81
Consolidated Obligations (Bonds by Maturity or Call Date) (Details) - Consolidated Obligation Bonds [Member] - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Bonds, Due in one year or less | $ 65,378 | $ 32,559 |
Bonds, Due after one year through two years | 17,065 | 17,132 |
Bonds, Due after two years through three years | 1,849 | 5,959 |
Bonds, Due after three years through four years | 1,482 | 2,124 |
Bonds, Due after four years through five years | 1,117 | 1,975 |
Bonds, Due after five years | 1,725 | 4,024 |
Bonds par value | 88,616 | 63,773 |
Earlier of Contractual Maturity or Next Call Date [Member] | ||
Debt Instrument [Line Items] | ||
Bonds, Due in one year or less | 70,232 | 41,410 |
Bonds, Due after one year through two years | 15,250 | 16,277 |
Bonds, Due after two years through three years | 1,399 | 3,461 |
Bonds, Due after three years through four years | 1,103 | 1,055 |
Bonds, Due after four years through five years | 162 | 1,023 |
Bonds, Due after five years | $ 470 | $ 547 |
Consolidated Obligations (Disco
Consolidated Obligations (Discount Notes) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Short-term Debt [Line Items] | ||
Discount notes | $ 41,292 | $ 69,434 |
Short-term Debt [Member] | ||
Short-term Debt [Line Items] | ||
Discount notes | 41,292 | 69,434 |
Discount notes par value | $ 41,334 | $ 69,481 |
Discount notes weighted average interest rate | 0.48% | 0.27% |
Affordable Housing Program (Rol
Affordable Housing Program (Roll-forward) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Affordable Housing Program [Roll Forward] | |||
AHP Obligation, beginning balance | $ 63 | $ 65 | $ 74 |
AHP Assessments | 31 | 33 | 30 |
Subsidy usage, net | (25) | (35) | (39) |
AHP Obligation, ending balance | $ 69 | $ 63 | $ 65 |
Affordable Housing Program (Nar
Affordable Housing Program (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Assessments [Abstract] | ||
Affordable Housing Program required aggregate contribution amount | $ 100 | |
Federal Home Loan Bank, Advances, Affordable Housing Program, Principal Outstanding | $ 27 | $ 30 |
Affordable Housing Program required contribution percentage | 10.00% |
Capital and Mandatorily Redee85
Capital and Mandatorily Redeemable Capital Stock (Narrative) (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2016USD ($)classinvestor$ / shares | Dec. 31, 2015USD ($)$ / shares | |
Capital and Mandatorily Redeemable Capital Stock (Textual) [Abstract] | ||
Number of Finance Agency Regulatory Capital Requirements | 3 | |
Total regulatory capital ratio, Required | 4.00% | 4.00% |
Required leverage ratio | 5.00% | 5.00% |
Weight applied to permanent capital in computing leverage ratio | 1.5 | |
Weight applied to nonpermanent capital in computing leverage ratio | 1 | |
Number of subclasses of capital stock | class | 2 | |
Capital stock Class B putable par value (per share) | $ / shares | $ 100 | $ 100 |
Membership stock requirement percentage | 0.09% | |
Membership stock requirement, maximum | $ 15 | |
Activity based capital stock required by members as a percent of total advances and mortgage loans oustanding as disclosed in the statement of condition | 4.25% | |
Activity based capital stock required by members as a percent of targeted debt or equity investments sold by member to the bank | 8.00% | |
Activity based capital stock required by member as a percentage of outstanding balance of acquired member assets | 0.00% | 0.00% |
Redemption period for excess capital stock (in years) | 5 years | |
Number of largest holders of capital stock | investor | 10 | |
Aggregate amount of capital stock held by ten largest holders of capital stock | $ 3,018 | $ 3,373 |
Aggregate percentage of capital stock held by ten largest holders of capital stock | 60.90% | 65.90% |
Capital and Mandatorily Redee86
Capital and Mandatorily Redeemable Capital Stock (Regulatory Capital Rules and Requirements) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Capital [Abstract] | |||
Risk based capital, Required | $ 1,701 | $ 1,621 | |
Risk based capital, Actual | $ 6,848 | $ 6,956 | |
Total regulatory capital ratio, Required | 4.00% | 4.00% | |
Total regulatory capital ratio, Actual | 4.94% | 4.89% | |
Total regulatory capital, Required | [1] | $ 5,547 | $ 5,690 |
Total regulatory capital, Actual | [1] | $ 6,848 | $ 6,956 |
Leverage capital ratio, Required | 5.00% | 5.00% | |
Leverage capital ratio, Actual | 7.41% | 7.33% | |
Leverage Capital, Required | $ 6,934 | $ 7,113 | |
Leverage Capital, Actual | $ 10,273 | $ 10,433 | |
[1] | Total regulatory capital does not include accumulated other comprehensive income but does include mandatorily redeemable capital stock. |
Capital and Mandatorily Redee87
Capital and Mandatorily Redeemable Capital Stock (Mandatorily Redeemable Capital Stock Roll-forward) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Activity In Mandatorily Redeemable Capital Stock | |||
Balance, beginning of year | $ 14 | $ 19 | $ 24 |
Net Shares Reclassified to Mandatorily Redeemable Capital Stock, Value | 7 | 21 | 7 |
Repurchase/redemption of mandatorily redeemable capital stock | (20) | (26) | (12) |
Balance, end of year | $ 1 | $ 14 | $ 19 |
Capital and Mandatorily Redee88
Capital and Mandatorily Redeemable Capital Stock (Mandatorily Redeemable Capital Stock by Year of Redemption) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Capital [Abstract] | ||||
Due in one year or less | $ 0 | $ 7 | ||
Due after one year through two years | 0 | 1 | ||
Due after three years through four years | 1 | 0 | ||
Due after four years through five years | 0 | 6 | ||
Mandatorily redeemable capital stock | $ 1 | $ 14 | $ 19 | $ 24 |
Accumulated Other Comprehensi89
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net change in fair value | $ 27 | $ (28) | $ (10) | |
Reclassification of noncredit portion of other-than-temporary impairment losses included in net income | 3 | 5 | 3 | |
Other comprehensive income (loss) related to pension and postretirement benefit plans | 0 | 3 | (10) | |
Pension and Postretirement Benefits [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Beginning of period | (20) | (23) | (13) | |
Noncredit other-than-temporary impairment losses | 0 | |||
Net change in fair value | 0 | 0 | 0 | |
Actuarial (loss) gain | (1) | 1 | (11) | |
Reclassification of noncredit portion of other-than-temporary impairment losses included in net income | 0 | 0 | 0 | |
Other comprehensive income (loss) related to pension and postretirement benefit plans | [1] | 1 | 2 | 1 |
Net current period other comprehensive income (loss) | 0 | 3 | (10) | |
Accumulated Other Comprehensive Income (Loss), End of period | (20) | (20) | (23) | |
Total Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Beginning of period | 75 | 95 | 112 | |
Noncredit other-than-temporary impairment losses | (1) | |||
Net change in fair value | 27 | (28) | (10) | |
Actuarial (loss) gain | (1) | 1 | (11) | |
Reclassification of noncredit portion of other-than-temporary impairment losses included in net income | 3 | 5 | 3 | |
Other comprehensive income (loss) related to pension and postretirement benefit plans | [1] | 1 | 2 | 1 |
Net current period other comprehensive income (loss) | 29 | (20) | (17) | |
Accumulated Other Comprehensive Income (Loss), End of period | 104 | 75 | 95 | |
Available-for-sale Securities [Member] | Noncredit Portion of Other Than Temporary Impairment Losses [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Beginning of period | 95 | 118 | 125 | |
Noncredit other-than-temporary impairment losses | (1) | |||
Net change in fair value | 27 | (28) | (10) | |
Actuarial (loss) gain | 0 | 0 | 0 | |
Reclassification of noncredit portion of other-than-temporary impairment losses included in net income | 3 | 5 | 3 | |
Other comprehensive income (loss) related to pension and postretirement benefit plans | 0 | 0 | 0 | |
Net current period other comprehensive income (loss) | 29 | (23) | (7) | |
Accumulated Other Comprehensive Income (Loss), End of period | $ 124 | $ 95 | $ 118 | |
[1] | Included in Compensation and benefits on the Statements of Income. |
Pension and Post Retirement B90
Pension and Post Retirement Benefit Plans (Multi-employer Plan) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 01, 2016 | Jul. 01, 2015 | Jul. 01, 2014 | ||
Multiemployer Plans [Line Items] | |||||||
Multiemployer plan number | 333 | ||||||
Pentegra Defined Benefit Plan [Member] | |||||||
Multiemployer Plans [Line Items] | |||||||
Pension Expense | $ 12 | $ 11 | $ 10 | ||||
Pentegra Plan funded status as of July 1 | [1] | 104.12% | 107.01% | 111.44% | |||
Bank's funded status as of the plan year end | 105.51% | 108.82% | 114.16% | ||||
Multiemployer Plans, Pension [Member] | |||||||
Multiemployer Plans [Line Items] | |||||||
Entity tax identification number | 135,645,888 | ||||||
[1] | The Pentegra Plan's funded status as of July 1 is preliminary and may increase because the plan's participants are permitted to make contributions through March 15 of the following year (i.e. through March 15, 2017 for the plan year ended June 30, 2016 and through March 15, 2016 for the plan year ended June 30, 2015). Contributions made before the March 15th deadline may be credited to the plan for the plan year ended June 30 of the previous year and included in the final valuation as of July 1 of the year the plan ended. The final funded status as of July 1 will not be available until the Form 5500 for the plan year July 1 through June 30 is filed. Form 5500 is due to be filed no later than April 2018 for the plan year July 1, 2016 through June 30, 2017 and April 2017 for the plan year July 1, 2015 through June 2016. Form 5500 was filed in April 2016 for the plan year July 1, 2014 through June 30, 2015. |
Pension and Post Retirement B91
Pension and Post Retirement Benefit Plans (Defined Contribution Plan) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Qualifed Defined Contribution Plan [Member] | |||
Defined Contribution Plan Disclosures [Line Items] | |||
Defined Contribution Plan, Cost Recognized | $ 2 | $ 2 | $ 2 |
Nonqualifed Defined Contribution Plan [Member] | |||
Defined Contribution Plan Disclosures [Line Items] | |||
Defined Contribution Plan, Cost Recognized | $ 1 | $ 1 | $ 1 |
Pension and Post Retirement B92
Pension and Post Retirement Benefit Plans (Deferred Compensation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Minimum obligation under deferred compensation plan | $ 3 | $ 2 | |
Deferred compensation and accrued earnings included in operating expenses (less than $1 million during the year ended December 31, 2014) | $ 1 | $ 1 | $ 1 |
Pension and Post Retirement B93
Pension and Post Retirement Benefit Plans (Defined Benefit Plan) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Other Liabilities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan amounts recognized in other liabilities | $ 56 | $ 51 |
Pension and Post Retirement B94
Pension and Post Retirement Benefit Plans (Net Periodic Benefit Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net pension cost charged to compensation and benefit expense for the year ended December 31 | $ 6 | $ 6 | $ 4 |
Pension and Post Retirement B95
Pension and Post Retirement Benefit Plans (Pension Recognized in Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total recognized in other comprehensive income (loss) | $ 0 | $ 3 | $ (10) |
Derivatives and Hedging Activ96
Derivatives and Hedging Activities (Fair Value of Derivative Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | ||
Derivative [Line Items] | ||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | $ 1,061 | $ 1,293 | ||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 22 | 27 | ||
Total notional amount of derivatives before netting and collateral adjustments | 81,197 | 99,798 | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 282 | 337 | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 1,073 | 1,551 | ||
Derivative, Collateral, Right to Reclaim Cash | [1] | 73 | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [1] | (161) | ||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (966) | (1,427) | [1] | |
Derivative assets | 355 | 176 | ||
Derivative liabilities | 107 | 124 | ||
Designated as Hedging Instrument [Member] | Interest Rate Swaps [Member] | ||||
Derivative [Line Items] | ||||
Total notional amount of derivatives before netting and collateral adjustments | 65,027 | 80,290 | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 256 | 312 | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 1,029 | 1,467 | ||
Not Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Total notional amount of derivatives before netting and collateral adjustments | 16,170 | 19,508 | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 26 | 25 | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 44 | 84 | ||
Not Designated as Hedging Instrument [Member] | Interest Rate Swaps [Member] | ||||
Derivative [Line Items] | ||||
Total notional amount of derivatives before netting and collateral adjustments | 1,158 | 3,008 | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 9 | 10 | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 31 | 74 | ||
Not Designated as Hedging Instrument [Member] | Interest Rate Caps or Floors [Member] | ||||
Derivative [Line Items] | ||||
Total notional amount of derivatives before netting and collateral adjustments | 15,000 | 16,500 | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 17 | 15 | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 13 | 10 | ||
Not Designated as Hedging Instrument [Member] | Mortgages [Member] | ||||
Derivative [Line Items] | ||||
Total notional amount of derivatives before netting and collateral adjustments | 12 | 0 | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | 0 | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | $ 0 | $ 0 | ||
[1] | Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty. Cash collateral posted and related accrued interest was $1,061 and $1,293 as of December 31, 2016 and 2015, respectively. Cash collateral received and related accrued interest was $22 and $27 as of December 31, 2016 and 2015, respectively. |
Derivatives and Hedging Activ97
Derivatives and Hedging Activities (Net Gains (Losses) on Derivatives and Hedging Activities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gains (losses) on derivatives not designated as hegding instruments | $ (1) | $ (8) | $ (27) |
Net gains on derivatives and hedging activities | 119 | 261 | 120 |
Interest Rate Swaps [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gains (losses) on derivatives and hedged items in fair value hedging relationships | 120 | 269 | 147 |
Net gains (losses) on derivatives not designated as hegding instruments | 30 | 53 | 57 |
Interest Rate Caps or Floors [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gains (losses) on derivatives not designated as hegding instruments | (1) | (2) | (14) |
Net Interest Settlements [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gains (losses) on derivatives not designated as hegding instruments | $ (30) | $ (59) | $ (70) |
Derivatives and Hedging Activ98
Derivatives and Hedging Activities (Effect of Fair Value Hedged Related Derivative Instruments) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) on Derivative | $ 372 | $ 349 | $ (17) | |
Gains (Losses) on Hedged Item | (252) | (80) | 164 | |
Net Fair Value Hedge Ineffectiveness | 120 | 269 | 147 | |
Effect of Derivatives on Net Interest Income | [1] | (302) | (235) | (378) |
Advances [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) on Derivative | 524 | 448 | (152) | |
Gains (Losses) on Hedged Item | (393) | (169) | 297 | |
Net Fair Value Hedge Ineffectiveness | 131 | 279 | 145 | |
Effect of Derivatives on Net Interest Income | [1] | (529) | (713) | (875) |
Consolidated Obligation Bonds [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) on Derivative | (154) | (93) | 135 | |
Gains (Losses) on Hedged Item | 146 | 81 | (133) | |
Net Fair Value Hedge Ineffectiveness | (8) | (12) | 2 | |
Effect of Derivatives on Net Interest Income | [1] | 230 | 469 | $ 497 |
Short-term Debt [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) on Derivative | 2 | (6) | ||
Gains (Losses) on Hedged Item | (5) | 8 | ||
Net Fair Value Hedge Ineffectiveness | (3) | 2 | ||
Effect of Derivatives on Net Interest Income | [1] | $ (3) | $ 9 | |
[1] | The net interest on derivatives in fair value hedge relationships is presented in the interest income or expense line item of the respective hedged item. |
Derivatives and Hedging Activ99
Derivatives and Hedging Activities (Offsetting of Derivative Assets and Derivative Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | ||
Derivatives, Fair Value [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | $ 282 | $ 337 | ||
Derivative Liability, Fair Value, Gross Liability | 1,073 | 1,551 | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [1] | (161) | ||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (966) | (1,427) | [1] | |
Derivative, Collateral, Right to Reclaim Cash | [1] | 73 | ||
Derivative assets | 355 | 176 | ||
Derivative liabilities | 107 | 124 | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 355 | 174 | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 107 | 124 | ||
Credit Risk Contract [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Credit Derivative Exposure Net | 346 | 170 | ||
Over the Counter [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | 70 | 260 | ||
Derivative Liability, Fair Value, Gross Liability | 370 | 1,159 | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (69) | (258) | ||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (263) | (1,035) | ||
Derivative assets | 1 | 2 | ||
Derivative liabilities | 107 | 124 | ||
Derivative, Collateral, Obligation to Return Securities That Cannot Be Sold or Repledged | [2] | 0 | 2 | |
Derivative, Collateral, Right to Reclaim Securities That Cannot Be Sold or Repledged | [2] | 0 | 0 | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 1 | 0 | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 107 | 124 | ||
Exchange Cleared [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | 212 | 77 | ||
Derivative Liability, Fair Value, Gross Liability | 703 | 392 | ||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (703) | (392) | ||
Derivative Asset Fair Value Gross Liability and Right To Reclaim Cash Offset | 142 | 97 | ||
Derivative assets | 354 | 174 | ||
Derivative liabilities | 0 | 0 | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | [3] | 354 | 174 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | $ 0 | $ 0 | ||
[1] | Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty. Cash collateral posted and related accrued interest was $1,061 and $1,293 as of December 31, 2016 and 2015, respectively. Cash collateral received and related accrued interest was $22 and $27 as of December 31, 2016 and 2015, respectively. | |||
[2] | Collateral held with respect to derivatives with member institutions, in which the Bank is acting as an intermediary, represents the amount of eligible collateral physically held by or on behalf of the Bank or collateral assigned to the Bank, as evidenced by a written security agreement, and held by the member institution for the benefit of the Bank. | |||
[3] | The Bank had net credit exposure of $346 and $170 as of December 31, 2016 and 2015, respectively, due to instances where the Bank’s pledged collateral to a counterparty exceeds the Bank’s net derivative liability position. |
Derivatives and Hedging Acti100
Derivatives and Hedging Activities (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Federal Home Loan Bank, Advances, Maximum Contractual Maturity Period | 30 years |
Derivative credit-risk-related contingent features net liability position aggregate fair value | $ 296 |
Collateral already posted, aggregate fair value | 193 |
Additional collateral | $ 71 |
Estimated Fair Values (Estimate
Estimated Fair Values (Estimated Fair Value Measurements on a Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | ||
Assets: | ||||
Trading securities | $ 262 | $ 1,265 | ||
Available-for-sale Securities | 1,345 | 1,662 | ||
Derivative assets | 355 | 176 | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [1] | (161) | ||
Derivative, Collateral, Right to Reclaim Cash | [1] | 73 | ||
Liabilities: | ||||
Derivative liabilities | 107 | 124 | ||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (966) | (1,427) | [1] | |
Government-sponsored enterprises debt obligations [Member] | ||||
Assets: | ||||
Trading securities | 261 | 1,212 | ||
Another FHLBank’s bond [Member] | ||||
Assets: | ||||
Trading securities | [2] | 0 | 52 | |
State or local housing agency debt obligations [Member] | ||||
Assets: | ||||
Trading securities | 1 | 1 | ||
Fair Value, Measurements, Recurring [Member] | ||||
Assets: | ||||
Trading securities | 0 | 0 | ||
Available-for-sale Securities | 0 | 0 | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [3] | (161) | ||
Derivative, Collateral, Right to Reclaim Cash | [4] | 73 | ||
Grantor trust assets (included in Other assets) | 0 | 0 | ||
Liabilities: | ||||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | [4] | (966) | (1,427) | |
Fair Value, Measurements, Recurring [Member] | Government-sponsored enterprises debt obligations [Member] | ||||
Assets: | ||||
Trading securities | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Another FHLBank’s bond [Member] | ||||
Assets: | ||||
Trading securities | 0 | |||
Fair Value, Measurements, Recurring [Member] | State or local housing agency debt obligations [Member] | ||||
Assets: | ||||
Trading securities | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities, Private-label residential [Member] | ||||
Assets: | ||||
Available-for-sale Securities | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Interest Rate Swaps [Member] | ||||
Assets: | ||||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (161) | |||
Derivative, Collateral, Right to Reclaim Cash | 73 | |||
Liabilities: | ||||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (966) | (1,427) | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Assets: | ||||
Trading securities | 0 | 0 | ||
Available-for-sale Securities | 0 | 0 | ||
Derivative assets | 0 | 0 | ||
Grantor trust assets (included in Other assets) | 37 | 31 | ||
Liabilities: | ||||
Derivative liabilities | 0 | 0 | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Assets: | ||||
Trading securities | 0 | 0 | ||
Grantor trust assets (included in Other assets) | 37 | 31 | ||
Total recurring assets at fair value | 37 | 31 | ||
Liabilities: | ||||
Total liabilities at fair value | 0 | 0 | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Government-sponsored enterprises debt obligations [Member] | ||||
Assets: | ||||
Trading securities | 0 | 0 | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Another FHLBank’s bond [Member] | ||||
Assets: | ||||
Trading securities | 0 | |||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | State or local housing agency debt obligations [Member] | ||||
Assets: | ||||
Trading securities | 0 | 0 | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities, Private-label residential [Member] | ||||
Assets: | ||||
Available-for-sale Securities | 0 | 0 | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Swaps [Member] | ||||
Assets: | ||||
Derivative assets | 0 | 0 | ||
Liabilities: | ||||
Derivative liabilities | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Assets: | ||||
Trading securities | 262 | 1,265 | ||
Available-for-sale Securities | 0 | 0 | ||
Derivative assets | 282 | 337 | ||
Grantor trust assets (included in Other assets) | 0 | 0 | ||
Liabilities: | ||||
Derivative liabilities | 1,073 | 1,551 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Assets: | ||||
Trading securities | 262 | 1,265 | ||
Grantor trust assets (included in Other assets) | 0 | 0 | ||
Total recurring assets at fair value | 544 | 1,602 | ||
Liabilities: | ||||
Total liabilities at fair value | 1,073 | 1,551 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Government-sponsored enterprises debt obligations [Member] | ||||
Assets: | ||||
Trading securities | 261 | 1,212 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Another FHLBank’s bond [Member] | ||||
Assets: | ||||
Trading securities | 52 | |||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | State or local housing agency debt obligations [Member] | ||||
Assets: | ||||
Trading securities | 1 | 1 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities, Private-label residential [Member] | ||||
Assets: | ||||
Available-for-sale Securities | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Swaps [Member] | ||||
Assets: | ||||
Derivative assets | 282 | 337 | ||
Liabilities: | ||||
Derivative liabilities | 1,073 | 1,551 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Assets: | ||||
Trading securities | 0 | 0 | ||
Available-for-sale Securities | 1,345 | 1,662 | ||
Derivative assets | 0 | 0 | ||
Grantor trust assets (included in Other assets) | 0 | 0 | ||
Liabilities: | ||||
Derivative liabilities | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Assets: | ||||
Trading securities | 0 | 0 | ||
Grantor trust assets (included in Other assets) | 0 | 0 | ||
Total recurring assets at fair value | 1,345 | 1,662 | ||
Liabilities: | ||||
Total liabilities at fair value | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Government-sponsored enterprises debt obligations [Member] | ||||
Assets: | ||||
Trading securities | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Another FHLBank’s bond [Member] | ||||
Assets: | ||||
Trading securities | 0 | |||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | State or local housing agency debt obligations [Member] | ||||
Assets: | ||||
Trading securities | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities, Private-label residential [Member] | ||||
Assets: | ||||
Available-for-sale Securities | 1,345 | 1,662 | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Swaps [Member] | ||||
Assets: | ||||
Derivative assets | 0 | 0 | ||
Liabilities: | ||||
Derivative liabilities | 0 | 0 | ||
Estimate of Fair Value Measurement [Member] | ||||
Assets: | ||||
Trading securities | 262 | 1,265 | ||
Available-for-sale Securities | 1,345 | 1,662 | ||
Derivative assets | 355 | 176 | ||
Grantor trust assets (included in Other assets) | 37 | 31 | ||
Liabilities: | ||||
Derivative liabilities | 107 | 124 | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Assets: | ||||
Trading securities | 262 | 1,265 | ||
Grantor trust assets (included in Other assets) | 37 | 31 | ||
Total recurring assets at fair value | 1,999 | 3,134 | ||
Liabilities: | ||||
Total liabilities at fair value | 107 | 124 | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Government-sponsored enterprises debt obligations [Member] | ||||
Assets: | ||||
Trading securities | 261 | 1,212 | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Another FHLBank’s bond [Member] | ||||
Assets: | ||||
Trading securities | 52 | |||
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | State or local housing agency debt obligations [Member] | ||||
Assets: | ||||
Trading securities | 1 | 1 | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities, Private-label residential [Member] | ||||
Assets: | ||||
Available-for-sale Securities | 1,345 | 1,662 | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Swaps [Member] | ||||
Assets: | ||||
Derivative assets | 355 | 176 | ||
Liabilities: | ||||
Derivative liabilities | $ 107 | $ 124 | ||
[1] | Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty. Cash collateral posted and related accrued interest was $1,061 and $1,293 as of December 31, 2016 and 2015, respectively. Cash collateral received and related accrued interest was $22 and $27 as of December 31, 2016 and 2015, respectively. | |||
[2] | The Federal Home Loan Bank of Chicago is the primary obligor of this consolidated obligation bond. | |||
[3] | Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same clearing agents and/or counterparties. | |||
[4] | Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same clearing agents and/or counterparties. |
Estimated Fair Values (Roll-for
Estimated Fair Values (Roll-forward of Level 3 Assets and Liabilities) (Details) - Fair Value, Measurements, Recurring [Member] - Fair Value, Inputs, Level 3 [Member] - Available-for-Sale Securities, Private Label Residential Mortgage Backed Securities [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Reconciliation of Available-For-Sale Securities Measured at Fair Value | ||||
Balance, beginning of year | $ 1,662 | $ 1,981 | $ 2,299 | |
Included in net impairment losses recognized in earnings | [1] | (3) | (5) | (3) |
Included in other comprehensive loss | [1] | 29 | (23) | (7) |
Accretion of credit losses in net interest income | [1] | 53 | 42 | 34 |
Settlements | (396) | (333) | (342) | |
Balance, end of year | $ 1,345 | $ 1,662 | $ 1,981 | |
[1] | Related to available-for-sale securities held at year end. |
Estimated Fair Values Estimated
Estimated Fair Values Estimated Fair Value Measurements on a Nonrecurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for portfolio, net | $ 0 | $ 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for portfolio, net | 569 | 646 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for portfolio, net | 0 | 1 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for portfolio, net | 0 | 0 |
Real estate owned (included in Other assets) | 0 | 0 |
Total nonrecurring assets at fair value | 0 | 0 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for portfolio, net | 0 | 0 |
Real estate owned (included in Other assets) | 0 | 0 |
Total nonrecurring assets at fair value | 0 | 0 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for portfolio, net | 0 | 1 |
Real estate owned (included in Other assets) | 0 | 3 |
Total nonrecurring assets at fair value | 0 | 4 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for portfolio, net | 569 | 647 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for portfolio, net | 1 | |
Real estate owned (included in Other assets) | 0 | 3 |
Total nonrecurring assets at fair value | $ 0 | $ 4 |
Estimated Fair Values (Fair Val
Estimated Fair Values (Fair Value Summary) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Assets: | ||||||
Cash and due from banks | $ 1,815 | $ 1,751 | $ 915 | $ 4,374 | ||
Trading securities | 262 | 1,265 | ||||
Available-for-sale Securities | 1,345 | 1,662 | ||||
Held-to-maturity Securities | 24,641 | 23,239 | ||||
Held-to-maturity securities | 24,633 | 23,263 | ||||
Interest Receivable | 171 | 171 | ||||
Derivative assets | 355 | 176 | ||||
Derivative, Collateral, Right to Reclaim Cash | [1] | 73 | ||||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [1] | (161) | ||||
Liabilities: | ||||||
Mandatorily redeemable capital stock | 1 | 14 | $ 19 | $ 24 | ||
Accrued interest payable | 128 | 127 | ||||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (966) | (1,427) | [1] | |||
Derivative liabilities | 107 | 124 | ||||
Fair Value, Inputs, Level 1 [Member] | ||||||
Assets: | ||||||
Cash and due from banks | 1,815 | 1,751 | ||||
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 | 0 | 0 | ||||
Interest Receivable | 0 | 0 | ||||
Derivative assets | 0 | 0 | ||||
Grantor trust assets (included in Other assets) | 37 | 31 | ||||
Liabilities: | ||||||
Interest-bearing deposits | 0 | 0 | ||||
Mandatorily redeemable capital stock | 1 | 14 | ||||
Accrued interest payable | 0 | 0 | ||||
Derivative liabilities | 0 | 0 | ||||
Fair Value, Inputs, Level 1 [Member] | Consolidated Obligation Bonds [Member] | ||||||
Liabilities: | ||||||
Bonds | 0 | 0 | ||||
Fair Value, Inputs, Level 1 [Member] | Short-term Debt [Member] | ||||||
Liabilities: | ||||||
Discount notes | 0 | |||||
Fair Value, Inputs, Level 1 [Member] | Discount Notes [Member] | ||||||
Liabilities: | ||||||
Discount notes | 0 | |||||
Fair Value, Inputs, Level 2 [Member] | ||||||
Assets: | ||||||
Cash and due from banks | 0 | 0 | ||||
Interest bearing-deposits | 1,106 | 1,088 | ||||
Securities purchased under agreements to resell | 1,386 | 2,500 | ||||
Federal funds sold | 7,770 | 5,421 | ||||
Trading securities | 262 | 1,265 | ||||
Available-for-sale Securities | 0 | 0 | ||||
Held-to-maturity securities | 23,843 | 22,179 | ||||
Advances | 99,062 | 104,021 | ||||
Mortgage loans held for portfolio, net | 569 | 646 | ||||
Accrued interest receivable | 171 | 171 | ||||
Derivative assets | 282 | 337 | ||||
Grantor trust assets (included in Other assets) | 0 | 0 | ||||
Liabilities: | ||||||
Interest-bearing deposits | 1,118 | 1,084 | ||||
Mandatorily redeemable capital stock | 0 | 0 | ||||
Accrued interest payable | 128 | 127 | ||||
Derivative liabilities | 1,073 | 1,551 | ||||
Fair Value, Inputs, Level 2 [Member] | Consolidated Obligation Bonds [Member] | ||||||
Liabilities: | ||||||
Bonds | 88,768 | 63,940 | ||||
Fair Value, Inputs, Level 2 [Member] | Short-term Debt [Member] | ||||||
Liabilities: | ||||||
Discount notes | 41,293 | 69,432 | ||||
Fair Value, Inputs, Level 3 [Member] | ||||||
Assets: | ||||||
Cash and due from banks | 0 | 0 | ||||
Interest bearing-deposits | 0 | 0 | ||||
Securities purchased under agreements to resell | 0 | 0 | ||||
Federal funds sold | 0 | 0 | ||||
Trading securities | 0 | 0 | ||||
Available-for-sale Securities | 1,345 | 1,662 | ||||
Held-to-maturity securities | 790 | 1,084 | ||||
Advances | 0 | 0 | ||||
Mortgage loans held for portfolio, net | 0 | 1 | ||||
Interest Receivable | 0 | 0 | ||||
Derivative assets | 0 | 0 | ||||
Grantor trust assets (included in Other assets) | 0 | 0 | ||||
Liabilities: | ||||||
Interest-bearing deposits | 0 | 0 | ||||
Mandatorily redeemable capital stock | 0 | 0 | ||||
Accrued interest payable | 0 | 0 | ||||
Derivative liabilities | 0 | 0 | ||||
Fair Value, Inputs, Level 3 [Member] | Consolidated Obligation Bonds [Member] | ||||||
Liabilities: | ||||||
Bonds | 0 | 0 | ||||
Fair Value, Inputs, Level 3 [Member] | Short-term Debt [Member] | ||||||
Liabilities: | ||||||
Discount notes | 0 | |||||
Fair Value, Inputs, Level 3 [Member] | Discount Notes [Member] | ||||||
Liabilities: | ||||||
Discount notes | 0 | |||||
Carrying Value [Member] | ||||||
Assets: | ||||||
Cash and due from banks | 1,815 | 1,751 | ||||
Interest bearing-deposits | 1,106 | 1,088 | ||||
Securities purchased under agreements to resell | 1,386 | 2,500 | ||||
Federal funds sold | 7,770 | 5,421 | ||||
Trading securities | 262 | 1,265 | ||||
Available-for-sale Securities | 1,345 | 1,662 | ||||
Held-to-maturity Securities | 24,641 | 23,239 | ||||
Advances | 99,077 | 104,168 | ||||
Mortgage loans held for portfolio, net | 523 | 584 | ||||
Interest Receivable | 171 | 171 | ||||
Derivative assets | 355 | 176 | ||||
Grantor trust assets (included in Other assets) | 37 | 31 | ||||
Liabilities: | ||||||
Interest-bearing deposits | 1,118 | 1,084 | ||||
Mandatorily redeemable capital stock | 1 | 14 | ||||
Accrued interest payable | 128 | 127 | ||||
Derivative liabilities | 107 | 124 | ||||
Carrying Value [Member] | Consolidated Obligation Bonds [Member] | ||||||
Liabilities: | ||||||
Bonds | 88,647 | 63,953 | ||||
Carrying Value [Member] | Short-term Debt [Member] | ||||||
Liabilities: | ||||||
Discount notes | 69,434 | |||||
Carrying Value [Member] | Discount Notes [Member] | ||||||
Liabilities: | ||||||
Discount notes | 41,292 | |||||
Estimate of Fair Value Measurement [Member] | ||||||
Assets: | ||||||
Cash and due from banks | 1,815 | 1,751 | ||||
Interest bearing-deposits | 1,106 | 1,088 | ||||
Securities purchased under agreements to resell | 1,386 | 2,500 | ||||
Federal funds sold | 7,770 | 5,421 | ||||
Trading securities | 262 | 1,265 | ||||
Available-for-sale Securities | 1,345 | 1,662 | ||||
Held-to-maturity securities | 24,633 | 23,263 | ||||
Advances | 99,062 | 104,021 | ||||
Mortgage loans held for portfolio, net | 569 | 647 | ||||
Accrued interest receivable | 171 | 171 | ||||
Derivative assets | 355 | 176 | ||||
Grantor trust assets (included in Other assets) | 37 | 31 | ||||
Liabilities: | ||||||
Interest-bearing deposits | 1,118 | 1,084 | ||||
Mandatorily redeemable capital stock | 1 | 14 | ||||
Accrued interest payable | 128 | 127 | ||||
Derivative liabilities | 107 | 124 | ||||
Estimate of Fair Value Measurement [Member] | Consolidated Obligation Bonds [Member] | ||||||
Liabilities: | ||||||
Bonds | 88,768 | 63,940 | ||||
Estimate of Fair Value Measurement [Member] | Short-term Debt [Member] | ||||||
Liabilities: | ||||||
Discount notes | 69,432 | |||||
Estimate of Fair Value Measurement [Member] | Discount Notes [Member] | ||||||
Liabilities: | ||||||
Discount notes | 41,293 | |||||
Fair Value, Measurements, Recurring [Member] | ||||||
Assets: | ||||||
Securities purchased under agreements to resell | 0 | |||||
Trading securities | 0 | 0 | ||||
Available-for-sale Securities | 0 | 0 | ||||
Held-to-maturity securities | 0 | 0 | ||||
Derivative, Collateral, Right to Reclaim Cash | [2] | 73 | ||||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [3] | (161) | ||||
Grantor trust assets (included in Other assets) | 0 | 0 | ||||
Liabilities: | ||||||
Mandatorily redeemable capital stock | 0 | 0 | ||||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | [2] | (966) | (1,427) | |||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||
Assets: | ||||||
Trading securities | 0 | 0 | ||||
Grantor trust assets (included in Other assets) | 37 | 31 | ||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Assets: | ||||||
Trading securities | 262 | 1,265 | ||||
Grantor trust assets (included in Other assets) | 0 | 0 | ||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Assets: | ||||||
Trading securities | 0 | 0 | ||||
Grantor trust assets (included in Other assets) | 0 | 0 | ||||
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||||||
Assets: | ||||||
Trading securities | 262 | 1,265 | ||||
Grantor trust assets (included in Other assets) | $ 37 | $ 31 | ||||
[1] | Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty. Cash collateral posted and related accrued interest was $1,061 and $1,293 as of December 31, 2016 and 2015, respectively. Cash collateral received and related accrued interest was $22 and $27 as of December 31, 2016 and 2015, respectively. | |||||
[2] | Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same clearing agents and/or counterparties. | |||||
[3] | Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same clearing agents and/or counterparties. |
Commitments and Contingencie105
Commitments and Contingencies (Details) $ in Millions | Dec. 31, 2016USD ($)letter_of_credit | Dec. 31, 2015USD ($)letter_of_credit | |
Standby Letters of Credit [Member] | |||
Loss Contingencies [Line Items] | |||
Number Of Outstanding Standby Letters Of Credit Renewable Annually | letter_of_credit | 12 | 11 | |
Standby Letters Of Credit Issued Renewable Annually | $ 34 | $ 29 | |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | [1] | 10,934 | 8,693 |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | [1] | 21,734 | 23,823 |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | [1] | 32,668 | 32,516 |
Commitments to Fund Additional Advances [Member] | |||
Loss Contingencies [Line Items] | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | 100 | 207 | |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | 200 | 100 | |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 300 | 307 | |
Short-term Debt [Member] | |||
Loss Contingencies [Line Items] | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | 0 | 100 | |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | 0 | 0 | |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 0 | 100 | |
Unsettled Consolidation Obligation Bonds [Member] | |||
Loss Contingencies [Line Items] | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | [2] | 15 | 25 |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | [2] | 0 | 0 |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | [2] | 15 | 25 |
Mortgages [Member] | |||
Loss Contingencies [Line Items] | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | [2] | 12 | 0 |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | [2] | 0 | 0 |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | [2] | $ 12 | $ 0 |
[1] | Expire Within One Year" includes 12 standby letters of credit for a total of $34 and 11 standby letters of credit for a total of $29 as of December 31, 2016 and 2015, respectively, that have no stated maturity date and are subject to renewal on an annual basis. | ||
[2] | Expiration is based on settlement period rather than underlying contractual maturity of consolidated obligations. |
Commitments and Contingencie106
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Loss Contingencies [Line Items] | ||||
The FHLBank's outstanding consolidated obligations for which the Bank is jointly and severally liable | $ 859,361 | $ 771,948 | ||
Operating leases rent expense | 2 | 2 | $ 2 | |
Carrying value guarantees related to standby letters of credit | $ 358 | 431 | ||
CommitmentsToPurchaseMortgageLoansMaximumTerm | 91 days | |||
Standby Letters of Credit [Member] | ||||
Loss Contingencies [Line Items] | ||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | [1] | $ 32,668 | 32,516 | |
Carrying value guarantees related to standby letters of credit | $ 135 | $ 136 | ||
[1] | Expire Within One Year" includes 12 standby letters of credit for a total of $34 and 11 standby letters of credit for a total of $29 as of December 31, 2016 and 2015, respectively, that have no stated maturity date and are subject to renewal on an annual basis. |
Transactions with Shareholde107
Transactions with Shareholders (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Minimum | |||
RelatedPartyTransactionDefinitionOfRelatedPartyCapitalStockPercentage | 10.00% | ||
Definition of shareholder concentration, percentage | 10.00% | ||
Federal Home Loan Bank, Regulatory Capital, Actual | [1] | $ 6,848 | $ 6,956 |
Par Value of Advance | 99,077 | 104,168 | |
Capital One, National Association [Member] | |||
Minimum | |||
Federal Home Loan Bank, Regulatory Capital, Actual | $ 745 | $ 869 | |
Percent of Total Regulatory Capital Stock Outstanding | 15.03% | 16.99% | |
Par Value of Advance | $ 17,176 | $ 20,095 | |
Percent of Total Par Value Advances | 17.48% | 19.54% | |
Interest-bearing Deposits | $ 16 | $ 17 | |
Percent of Total Interest-bearing Deposits | 1.41% | 1.55% | |
Navy Federal Credit Union [Member] | |||
Minimum | |||
Federal Home Loan Bank, Regulatory Capital, Actual | $ 589 | $ 643 | |
Percent of Total Regulatory Capital Stock Outstanding | 11.88% | 12.57% | |
Par Value of Advance | $ 13,495 | $ 14,773 | |
Percent of Total Par Value Advances | 13.73% | 14.36% | |
Interest-bearing Deposits | $ 156 | $ 0 | |
Percent of Total Interest-bearing Deposits | 13.93% | 0.01% | |
Bank of America [Member] | |||
Minimum | |||
Federal Home Loan Bank, Regulatory Capital, Actual | $ 504 | $ 579 | |
Percent of Total Regulatory Capital Stock Outstanding | 10.17% | 11.31% | |
Par Value of Advance | $ 11,511 | $ 13,262 | |
Percent of Total Par Value Advances | 11.71% | 12.89% | |
Interest-bearing Deposits | $ 0 | $ 0 | |
Percent of Total Interest-bearing Deposits | 0.01% | 0.01% | |
[1] | Total regulatory capital does not include accumulated other comprehensive income but does include mandatorily redeemable capital stock. |
Transaction with Other FHLBa108
Transaction with Other FHLBanks (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Other Transactions [Line Items] | |||
Interest expense on loans to other FHLBanks (less than $1 million) | $ 0 | $ 1 | $ 1 |
Loans made to other FHLBanks | (1,010) | (11,759) | (990) |
Principal collected on loans made to other FHLBanks | 1,010 | 11,759 | 990 |
Net change in loans made to other FHLBanks | 0 | 0 | 0 |
Interest Income, Loans to Other Federal Home Loan Banks | 1 | 1 | 1 |
Proceeds from short-term borrowings from other FHLBanks | 0 | 927 | 1,038 |
Payments of short-term borrowings from other FHLBanks | 0 | (927) | (1,038) |
Net change in borrowings from other FHLBanks | 0 | 0 | 0 |
Interest income on consolidated obligation bonds | 38 | 68 | 75 |
FHLBank of Chicago [Member] | |||
Schedule of Other Transactions [Line Items] | |||
Interest income on consolidated obligation bonds | 2 | $ 9 | $ 9 |
FHLBank of Indianapolis [Member] | |||
Schedule of Other Transactions [Line Items] | |||
Participation interests purchased from other banks | $ 72 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Mar. 09, 2017USD ($) |
Subsequent Events [Abstract] | |
Payments of Dividends | $ 58 |