v3.25.2
Mortgage Loans (Notes)
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Mortgage Loans MORTGAGE LOANS
Mortgage loans held for portfolio consist of loans obtained through the MPF Program and are either conventional mortgage loans or government-guaranteed or government-insured mortgage loans. Under the MPF Program, FHLBank purchases single-family mortgage loans that are originated or acquired by participating financial institutions (PFI). These mortgage loans are credit-enhanced by PFIs or are guaranteed or insured by Federal agencies.
Mortgage Loans Held for Portfolio: Table 5.1 presents information as of June 30, 2025 and December 31, 2024 on mortgage loans held for portfolio (in thousands). Carrying amounts exclude accrued interest receivable of $57,714,000 and $54,997,000 as of June 30, 2025 and December 31, 2024, respectively.

Table 5.1
 06/30/202512/31/2024
Real estate:  
Fixed-rate, medium-term1, single-family mortgages
$874,370 $928,996 
Fixed-rate, long-term, single-family mortgages
8,237,224 7,948,931 
Total unpaid principal balance9,111,594 8,877,927 
Premiums95,682 95,760 
Discounts(9,985)(6,904)
Deferred loan costs, net31 34 
Hedging adjustments(12,745)(13,351)
Total before allowance for credit losses on mortgage loans9,184,577 8,953,466 
Allowance for credit losses on mortgage loans(3,999)(4,033)
MORTGAGE LOANS HELD FOR PORTFOLIO, NET$9,180,578 $8,949,433 
                   
1    Medium-term defined as a term of 15 years or less at origination.
Table 5.2 presents information as of June 30, 2025 and December 31, 2024 on the outstanding unpaid principal balance of mortgage loans held for portfolio (in thousands):

Table 5.2
 06/30/202512/31/2024
Conventional loans$8,791,117 $8,553,518 
Government-guaranteed or -insured loans320,477 324,409 
TOTAL UNPAID PRINCIPAL BALANCE$9,111,594 $8,877,927 
Payment Status of Mortgage Loans: Payment status is the key credit quality indicator for conventional mortgage loans and allows FHLBank to monitor borrower performance. A past due loan is one where the borrower has failed to make a full payment of principal and interest within 30 days of its due date. Other delinquency statistics include nonaccrual loans and loans in process of foreclosure.
Table 5.3 presents the payment status based on amortized cost as well as other delinquency statistics for FHLBank’s mortgage loans as of June 30, 2025 (dollar amounts in thousands):

Table 5.3
 06/30/2025
Conventional LoansGovernment
Loans		Total
Origination YearSubtotal
 Prior to 202120212022202320242025
Amortized Cost:1
   
Past due 30-59 days delinquent
$29,196 $11,252 $6,157 $5,314 $2,770 $1,412 $56,101 $8,041 $64,142 
Past due 60-89 days delinquent
11,028 2,567 3,404 1,857 1,036 — 19,892 4,008 23,900 
Past due 90 days or more delinquent
8,472 1,572 2,227 1,841 425 — 14,537 3,338 17,875 
Total past due48,696 15,391 11,788 9,012 4,231 1,412 90,530 15,387 105,917 
Total current loans3,601,850 1,512,879 736,122 973,036 1,335,098 611,176 8,770,161 308,499 9,078,660 
Total mortgage loans$3,650,546 $1,528,270 $747,910 $982,048 $1,339,329 $612,588 $8,860,691 $323,886 $9,184,577 
Other delinquency statistics:   
In process of foreclosure2
$5,863 $418 $6,281 
Serious delinquency rate3
0.2 %1.1 %0.2 %
Past due 90 days or more and still accruing interest
$— $3,338 $3,338 
Loans on nonaccrual status4
$25,666 $— $25,666 
                   
1    Excludes accrued interest receivable.
2    Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans depending on their delinquency status.
3    Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total amortized cost for the portfolio class.
4    Includes $15,557,000 of conventional mortgage loans on nonaccrual status that did not have an associated allowance for credit losses because these loans were either previously charged off to the expected recoverable value or the fair value of the underlying collateral was greater than the amortized cost of the loans.
Table 5.4 presents the payment status based on amortized cost as well as other delinquency statistics for FHLBank’s mortgage loans as of December 31, 2024 (dollar amounts in thousands):

Table 5.4
12/31/2024
Conventional LoansGovernment
Loans		Total
Origination YearSubtotal
Prior to 201920192020202120222023
Amortized Cost:1
   
Past due 30-59 days delinquent
$30,714 $5,594 $8,215 $7,165 $7,532 $4,087 $63,307 $9,669 $72,976 
Past due 60-89 days delinquent
8,402 1,290 1,680 2,017 1,514 213 15,116 3,572 18,688 
Past due 90 days or more delinquent
10,006 1,414 1,738 1,846 3,922 381 19,307 6,509 25,816 
Total past due49,122 8,298 11,633 11,028 12,968 4,681 97,730 19,750 117,480 
Total current loans2,425,528 1,372,758 1,583,252 770,774 1,027,080 1,348,195 8,527,587 308,399 8,835,986 
Total mortgage loans$2,474,650 $1,381,056 $1,594,885 $781,802 $1,040,048 $1,352,876 $8,625,317 $328,149 $8,953,466 
Other delinquency statistics:   
In process of foreclosure2
$3,124 $305 $3,429 
Serious delinquency rate3
0.2 %2.0 %0.3 %
Past due 90 days or more and still accruing interest
$— $6,509 $6,509 
Loans on nonaccrual status4
$24,402 $— $24,402 
                   
1    Excludes accrued interest receivable.
2    Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans depending on their delinquency status.
3    Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total amortized cost for the portfolio class.
4    Includes $11,301,000 of conventional mortgage loans on nonaccrual status that did not have an associated allowance for credit losses because these loans were either previously charged off to the expected recoverable value or the fair value of the underlying collateral was greater than the amortized cost of the loans.
Allowance for Credit Losses:
Conventional Mortgage Loans: Conventional loans that have similar risk characteristics are pooled and collectively evaluated. Conventional loans that do not share risk characteristics with other pools are evaluated for expected credit losses on an individual basis. FHLBank determines its allowance for credit losses on conventional loans through analyses that include consideration of various loan portfolio and collateral-related characteristics, such as past performance, current economic conditions, and reasonable and supportable forecasts of expected economic conditions. FHLBank uses a third-party projected cash flow model to estimate expected credit losses over the life of the loans. This model relies on a number of inputs, such as both current and forecasted property values and interest rates as well as historical borrower behavior among other factors. The forecasts used in the calculation of expected credit losses cover the contractual terms of the loans rather than a reversion to historical trends after a forecasted period. FHLBank also incorporates associated credit enhancements, as available, to determine its estimate of expected credit losses.

Certain conventional loans may be evaluated for credit losses using the practical expedient for collateral dependent assets. A mortgage loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be substantially through the sale of the underlying collateral. FHLBank may estimate the fair value of this collateral by applying an appropriate loss severity rate or by using third party estimates or property valuation models. The expected credit loss of a collateral dependent mortgage loan is equal to the difference between the amortized cost of the loan and the estimated fair value of the collateral, less estimated selling costs. FHLBank records a direct charge-off of the loan balance if certain triggering criteria are met. Expected recoveries of prior charge-offs, if any, are included in the allowance for credit losses.
FHLBank established an allowance for credit losses on its conventional mortgage loans held for portfolio. Table 5.5 presents a roll-forward of the allowance for credit losses on mortgage loans for the three and six months ended June 30, 2025 and 2024.

Table 5.5
Three Months EndedSix Months Ended
Conventional Loans06/30/202506/30/202406/30/202506/30/2024
Balance, beginning of the period$3,948 $5,202 $4,033 $5,531 
Net (charge-offs) recoveries(701)(24)(894)(153)
Provision (reversal) for credit losses752 (863)860 (1,063)
Balance, end of the period$3,999 $4,315 $3,999 $4,315 

Government-Guaranteed or -Insured Mortgage Loans: FHLBank invests in fixed-rate mortgage loans that are insured or guaranteed by the Federal Housing Administration, the Department of Veterans Affairs, the Rural Housing Service of the Department of Agriculture, or the Department of Housing and Urban Development. 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 guarantee or insurance with respect to defaulted government-guaranteed or -insured mortgage loans. Based on FHLBank's assessment of its servicers and the collateral backing the loans, the risk of loss was immaterial. Consequently, no allowance for credit losses for government-guaranteed or government-insured mortgage loans was recorded as of June 30, 2025 and December 31, 2024. Furthermore, none of these mortgage loans have been placed on nonaccrual status because of the U.S. government guarantee or insurance on these loans and the contractual obligation of the loan servicer to repurchase the loans when certain criteria are met.