Company Quick10K Filing
Quick10K
Federal Home Loan Bank of Indianapolis
10-Q 2019-09-30 Quarter: 2019-09-30
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-11-04 Off-BS Arrangement, Exhibits
8-K 2019-10-30 Off-BS Arrangement, Exhibits
8-K 2019-10-28 Off-BS Arrangement, Exhibits
8-K 2019-10-24 Earnings, Exhibits
8-K 2019-10-23 Off-BS Arrangement, Exhibits
8-K 2019-10-21 Off-BS Arrangement, Exhibits
8-K 2019-10-10 Officers, Exhibits
8-K 2019-10-10 Enter Agreement, Exhibits
8-K 2019-10-09 Off-BS Arrangement, Exhibits
8-K 2019-10-07 Off-BS Arrangement, Exhibits
8-K 2019-10-03 Off-BS Arrangement, Exhibits
8-K 2019-09-30 Off-BS Arrangement, Exhibits
8-K 2019-09-27 Other Events, Exhibits
8-K 2019-09-25 Off-BS Arrangement, Exhibits
8-K 2019-09-24 Off-BS Arrangement, Exhibits
8-K 2019-09-18 Off-BS Arrangement, Exhibits
8-K 2019-09-16 Off-BS Arrangement, Exhibits
8-K 2019-09-11 Off-BS Arrangement, Exhibits
8-K 2019-09-09 Off-BS Arrangement, Exhibits
8-K 2019-09-09 Officers, Exhibits
8-K 2019-09-04 Off-BS Arrangement, Exhibits
8-K 2019-09-03 Off-BS Arrangement, Exhibits
8-K 2019-08-28 Off-BS Arrangement, Exhibits
8-K 2019-08-26 Off-BS Arrangement, Exhibits
8-K 2019-08-21 Off-BS Arrangement, Exhibits
8-K 2019-08-19 Off-BS Arrangement, Exhibits
8-K 2019-08-14 Off-BS Arrangement, Exhibits
8-K 2019-08-12 Off-BS Arrangement, Exhibits
8-K 2019-08-07 Off-BS Arrangement, Exhibits
8-K 2019-08-05 Off-BS Arrangement, Exhibits
8-K 2019-07-31 Off-BS Arrangement, Exhibits
8-K 2019-07-29 Off-BS Arrangement, Exhibits
8-K 2019-07-25 Earnings, Exhibits
8-K 2019-07-24 Off-BS Arrangement, Exhibits
8-K 2019-07-22 Off-BS Arrangement, Exhibits
8-K 2019-07-17 Off-BS Arrangement, Exhibits
8-K 2019-07-15 Off-BS Arrangement, Exhibits
8-K 2019-07-10 Off-BS Arrangement, Exhibits
8-K 2019-07-08 Off-BS Arrangement, Exhibits
8-K 2019-07-01 Amend Bylaw, Exhibits
8-K 2019-06-26 Off-BS Arrangement, Exhibits
8-K 2019-06-24 Off-BS Arrangement, Exhibits
8-K 2019-06-19 Off-BS Arrangement, Exhibits
8-K 2019-06-17 Off-BS Arrangement, Exhibits
8-K 2019-06-12 Off-BS Arrangement, Exhibits
8-K 2019-06-10 Off-BS Arrangement, Exhibits
8-K 2019-06-05 Off-BS Arrangement, Exhibits
8-K 2019-05-29 Off-BS Arrangement, Exhibits
8-K 2019-05-22 Off-BS Arrangement, Exhibits
8-K 2019-05-20 Off-BS Arrangement, Exhibits
8-K 2019-05-15 Off-BS Arrangement, Exhibits
8-K 2019-05-08 Off-BS Arrangement, Exhibits
8-K 2019-05-06 Off-BS Arrangement, Exhibits
8-K 2019-05-01 Off-BS Arrangement, Exhibits
8-K 2019-04-30 Off-BS Arrangement, Exhibits
8-K 2019-04-25 Earnings, Exhibits
8-K 2019-04-24 Off-BS Arrangement, Exhibits
8-K 2019-04-22 Off-BS Arrangement, Exhibits
8-K 2019-04-18 Off-BS Arrangement, Exhibits
8-K 2019-04-15 Off-BS Arrangement, Exhibits
8-K 2019-04-10 Off-BS Arrangement, Exhibits
8-K 2019-04-04 Off-BS Arrangement, Exhibits
8-K 2019-04-01 Off-BS Arrangement, Exhibits
8-K 2019-03-27 Off-BS Arrangement, Exhibits
8-K 2019-03-25 Off-BS Arrangement, Exhibits
8-K 2019-03-21 Off-BS Arrangement, Exhibits
8-K 2019-03-18 Off-BS Arrangement, Exhibits
8-K 2019-03-13 Off-BS Arrangement, Exhibits
8-K 2019-03-11 Off-BS Arrangement, Exhibits
8-K 2019-03-06 Off-BS Arrangement, Exhibits
8-K 2019-03-05 Off-BS Arrangement, Exhibits
8-K 2019-02-27 Off-BS Arrangement, Exhibits
8-K 2019-02-19 Earnings, Exhibits
8-K 2019-02-15 Off-BS Arrangement, Exhibits
8-K 2019-02-13 Off-BS Arrangement, Exhibits
8-K 2019-02-11 Off-BS Arrangement, Exhibits
8-K 2019-02-07 Off-BS Arrangement, Exhibits
8-K 2019-02-05 Off-BS Arrangement, Exhibits
8-K 2019-01-30 Off-BS Arrangement, Exhibits
8-K 2019-01-23 Off-BS Arrangement, Exhibits
8-K 2019-01-22 Off-BS Arrangement, Exhibits
8-K 2019-01-22 Off-BS Arrangement, Exhibits
8-K 2019-01-16 Off-BS Arrangement, Exhibits
8-K 2019-01-14 Off-BS Arrangement, Exhibits
8-K 2019-01-11 Officers, Exhibits
8-K 2019-01-10 Off-BS Arrangement, Exhibits
8-K 2019-01-02 Off-BS Arrangement, Exhibits
8-K 2018-12-26 Off-BS Arrangement, Exhibits
8-K 2018-12-21 Off-BS Arrangement, Exhibits
8-K 2018-12-12 Off-BS Arrangement, Exhibits
8-K 2018-12-10 Off-BS Arrangement, Exhibits
8-K 2018-12-07 Off-BS Arrangement, Exhibits
8-K 2018-12-03 Off-BS Arrangement, Exhibits
8-K 2018-12-03 Officers, Exhibits
8-K 2018-11-29 Off-BS Arrangement, Exhibits
8-K 2018-11-20 Off-BS Arrangement, Exhibits
8-K 2018-11-16 Officers, Other Events, Exhibits
8-K 2018-11-14 Off-BS Arrangement, Exhibits
8-K 2018-11-09 Officers
8-K 2018-11-07 Off-BS Arrangement, Exhibits
8-K 2018-10-31 Off-BS Arrangement, Exhibits
8-K 2018-10-29 Off-BS Arrangement, Exhibits
8-K 2018-10-25 Earnings, Exhibits
8-K 2018-10-24 Off-BS Arrangement, Exhibits
8-K 2018-10-22 Off-BS Arrangement, Exhibits
8-K 2018-10-17 Off-BS Arrangement, Exhibits
8-K 2018-10-16 Off-BS Arrangement, Exhibits
8-K 2018-10-12 Officers, Exhibits
8-K 2018-10-11 Off-BS Arrangement, Exhibits
8-K 2018-10-04 Off-BS Arrangement, Exhibits
8-K 2018-10-02 Off-BS Arrangement, Exhibits
8-K 2018-09-27 Off-BS Arrangement, Exhibits
8-K 2018-09-25 Off-BS Arrangement, Exhibits
8-K 2018-09-19 Off-BS Arrangement, Exhibits
8-K 2018-09-18 Off-BS Arrangement, Exhibits
8-K 2018-09-18 Enter Agreement, Exhibits
8-K 2018-09-11 Off-BS Arrangement, Exhibits
8-K 2018-09-06 Off-BS Arrangement, Exhibits
8-K 2018-09-04 Off-BS Arrangement, Exhibits
8-K 2018-08-29 Off-BS Arrangement, Exhibits
8-K 2018-08-28 Off-BS Arrangement, Exhibits
8-K 2018-08-23 Off-BS Arrangement, Exhibits
8-K 2018-08-20 Off-BS Arrangement, Exhibits
8-K 2018-08-15 Off-BS Arrangement, Exhibits
8-K 2018-08-13 Off-BS Arrangement, Exhibits
8-K 2018-08-08 Off-BS Arrangement, Exhibits
8-K 2018-08-07 Off-BS Arrangement, Exhibits
8-K 2018-08-01 Off-BS Arrangement, Exhibits
8-K 2018-07-26 Earnings, Exhibits
8-K 2018-07-25 Off-BS Arrangement, Exhibits
8-K 2018-07-24 Off-BS Arrangement, Exhibits
8-K 2018-07-18 Off-BS Arrangement, Exhibits
8-K 2018-07-16 Off-BS Arrangement, Exhibits
8-K 2018-07-02 Off-BS Arrangement, Exhibits
8-K 2018-06-28 Off-BS Arrangement, Exhibits
8-K 2018-06-25 Off-BS Arrangement, Exhibits
8-K 2018-06-20 Off-BS Arrangement, Exhibits
8-K 2018-06-18 Off-BS Arrangement, Exhibits
8-K 2018-06-13 Off-BS Arrangement, Exhibits
8-K 2018-06-12 Off-BS Arrangement, Exhibits
8-K 2018-06-07 Off-BS Arrangement, Exhibits
8-K 2018-06-04 Off-BS Arrangement, Exhibits
8-K 2018-05-30 Off-BS Arrangement, Exhibits
8-K 2018-05-29 Off-BS Arrangement, Exhibits
8-K 2018-05-24 Off-BS Arrangement, Exhibits
8-K 2018-05-21 Off-BS Arrangement, Exhibits
8-K 2018-05-17 Off-BS Arrangement, Exhibits
8-K 2018-05-02 Off-BS Arrangement, Exhibits
8-K 2018-04-30 Off-BS Arrangement, Exhibits
8-K 2018-04-26 Off-BS Arrangement, Exhibits
8-K 2018-04-18 Off-BS Arrangement, Exhibits
8-K 2018-04-11 Off-BS Arrangement, Exhibits
8-K 2018-04-04 Off-BS Arrangement, Exhibits
8-K 2018-04-02 Off-BS Arrangement, Exhibits
8-K 2018-03-27 Off-BS Arrangement, Exhibits
8-K 2018-03-21 Off-BS Arrangement, Exhibits
8-K 2018-03-19 Off-BS Arrangement, Exhibits
8-K 2018-03-14 Off-BS Arrangement, Exhibits
8-K 2018-03-12 Off-BS Arrangement, Exhibits
8-K 2018-03-07 Off-BS Arrangement, Exhibits
8-K 2018-03-06 Off-BS Arrangement, Exhibits
8-K 2018-02-28 Off-BS Arrangement, Exhibits
8-K 2018-02-26 Off-BS Arrangement, Exhibits
8-K 2018-02-23 Off-BS Arrangement, Exhibits
8-K 2018-02-22 Officers, Exhibits
8-K 2018-02-20 Earnings, Exhibits
8-K 2018-02-12 Off-BS Arrangement, Exhibits
8-K 2018-02-07 Off-BS Arrangement, Exhibits
8-K 2018-02-01 Off-BS Arrangement, Exhibits
8-K 2018-01-29 Off-BS Arrangement, Exhibits
8-K 2018-01-25 Off-BS Arrangement, Exhibits
8-K 2018-01-23 Off-BS Arrangement, Exhibits
8-K 2018-01-17 Off-BS Arrangement, Exhibits
8-K 2018-01-11 Off-BS Arrangement, Exhibits
8-K 2018-01-08 Off-BS Arrangement, Exhibits
8-K 2018-01-03 Off-BS Arrangement, Exhibits
ATXG Addentax Group 1,926
EEQ Enbridge Energy Management 1,005
UNG United States Natural Gas Fund 230
NOVA Sunnova Energy 183
LEAI Legacy Education Alliance 9
BTCS BTCS 3
ZNGY Zenergy Brands 0
NDRAU Endra Life Sciences 0
CNHC CNH Industrial Capital 0
BYLG Bylog Group 0
FHLBI 2019-09-30
Part I. Financial Information
Item 1. Financial Statements
Note 1 - Summary of Significant Accounting Policies
Note 2 - Recently Adopted and Issued Accounting Guidance
Note 3 - Investment Securities
Note 4 - Advances
Note 5 - Mortgage Loans Held for Portfolio
Note 6 - Allowance for Credit Losses
Note 7 - Derivatives and Hedging Activities
Note 8 - Consolidated Obligations
Note 9 - Affordable Housing Program
Note 10 - Capital
Note 11 - Accumulated Other Comprehensive Income
Note 12 - Segment Information
Note 13 - Estimated Fair Values
Note 14 - Commitments and Contingencies
Note 15 - Related Party and Other Transactions
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 6. Exhibits
EX-31.1 ex311september302019.htm
EX-31.2 ex312september302019.htm
EX-31.3 ex313september302019.htm
EX-32 ex32section1350certificati.htm

Federal Home Loan Bank of Indianapolis Earnings 2019-09-30

FHLBI 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 ind9301910-q.htm 10-Q Document


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
 

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended September 30, 2019
 
OR
 
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
Commission File Number:  000-51404
 
FEDERAL HOME LOAN BANK OF INDIANAPOLIS
(Exact name of registrant as specified in its charter)
 
Federally Chartered Corporation
 
35-6001443
(State or other jurisdiction of incorporation)
 
(IRS employer identification number)
 
 
 8250 Woodfield Crossing Blvd. Indianapolis, IN
 
46240
(Address of principal executive offices)
 
(Zip code)
(317) 465-0200
(Registrant's telephone number, including area code)
 
Not Applicable
(Former name or former address, if changed since last report.)
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
None
None
None
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing for the past 90 days.
x  Yes            o  No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
x   Yes            o  No
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
o  Large accelerated filer
o  Accelerated filer
o  Emerging growth company
x Non-accelerated filer
o  Smaller reporting company
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
o  Yes            x  No
 
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
 
Shares outstanding
as of October 31, 2019

Class B Stock, par value $100
22,731,680




Table of Contents
Page
 
 
Number
 
Special Note Regarding Forward-Looking Statements
PART I.
FINANCIAL INFORMATION
 
Item 1.
FINANCIAL STATEMENTS (unaudited)
 
 
 
 
 
Statements of Condition as of September 30, 2019 and December 31, 2018
 
 
 
 
Statements of Income for the Three and Nine Months Ended September 30, 2019 and 2018
 
 
 
 
Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2019 and 2018
 
 
 
 
Statements of Capital for the Three and Nine Months Ended September 30, 2018 and 2019
 
 
 
 
Statements of Cash Flows for the Nine Months Ended September 30, 2019 and 2018
 
 
 
 
Notes to Financial Statements:
 
 
Note 1 - Summary of Significant Accounting Policies
 
Note 2 - Recently Adopted and Issued Accounting Guidance
 
Note 3 - Investment Securities
 
Note 4 - Advances
 
Note 5 - Mortgage Loans Held for Portfolio
 
Note 6 - Allowance for Credit Losses
 
Note 7 - Derivatives and Hedging Activities
 
Note 8 - Consolidated Obligations
 
Note 9 - Affordable Housing Program
 
Note 10 - Capital
 
Note 11 - Accumulated Other Comprehensive Income
 
Note 12 - Segment Information
 
Note 13 - Estimated Fair Values
 
Note 14 - Commitments and Contingencies
 
Note 15 - Related Party and Other Transactions
 
 
 
 
Glossary of Terms
 
 
 
Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 
 
Presentation
 
Executive Summary
 
Selected Financial Data
 
Results of Operations and Changes in Financial Condition
 
Operating Segments
 
Analysis of Financial Condition
 
Liquidity and Capital Resources
 
Off-Balance Sheet Arrangements
 
Critical Accounting Policies and Estimates
 
Recent Accounting and Regulatory Developments
 
Risk Management
Item 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Item 4.
CONTROLS AND PROCEDURES
 
 
 
PART II.
OTHER INFORMATION
 
Item 1.
LEGAL PROCEEDINGS
Item 1A.
RISK FACTORS
Item 6.
EXHIBITS




As used in this Form 10-Q, unless the context otherwise requires, the terms "we," "us," "our," and the "Bank" refer to the Federal Home Loan Bank of Indianapolis or its management. We use acronyms and terms throughout that are defined herein or in the Glossary of Terms in Part I Item 1.

Special Note Regarding Forward-Looking Statements
 
Certain statements in this Form 10-Q, including statements describing our objectives, projections, estimates or predictions, may be considered to be "forward-looking statements." These statements may use forward-looking terminology, such as "anticipates," "believes," "could," "estimates," "may," "should," "expects," "will," or their negatives or other variations on these terms. We caution that, by their nature, forward-looking statements involve risk or uncertainty and that actual results either could differ materially from those expressed or implied in these forward-looking statements or could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties including, but not limited to, the following:

economic and market conditions, including the timing and volume of market activity, inflation or deflation, changes in the value of global currencies, and changes in the financial condition of market participants;
volatility of market prices, interest rates, and indices or other factors, resulting from the effects of, and changes in, various monetary or fiscal policies and regulations, including those determined by the FRB and the FDIC, or a decline in liquidity in the financial markets, that could affect the value of investments or collateral we hold as security for the obligations of our members and counterparties;
changes in demand for our advances and purchases of mortgage loans resulting from:
changes in our members' deposit flows and credit demands;
federal or state regulatory developments impacting suitability or eligibility of membership classes;
membership changes, including, but not limited to, mergers, acquisitions and consolidations of charters;
changes in the general level of housing activity in the United States and particularly our district states of Michigan and Indiana, the level of refinancing activity and consumer product preferences; and
competitive forces, including, without limitation, other sources of funding available to our members;
changes in mortgage asset prepayment patterns, delinquency rates and housing values or improper or inadequate mortgage originations and mortgage servicing;
ability to introduce and successfully manage new products and services, including new types of collateral securing advances;
political events, including federal government shutdowns, administrative, legislative, regulatory, or other developments, and judicial rulings that affect us, our status as a secured creditor, our members (or certain classes of members), prospective members, counterparties, GSEs generally, one or more of the FHLBanks and/or investors in the consolidated obligations of the FHLBanks;
ability to access the capital markets and raise capital market funding on acceptable terms;
changes in our credit ratings or the credit ratings of the other FHLBanks and the FHLBank System;
changes in the level of government guarantees provided to other United States and international financial institutions;
dealer commitment to supporting the issuance of our consolidated obligations;
ability of one or more of the FHLBanks to repay its portion of the consolidated obligations, or otherwise meet its financial obligations;
ability to attract and retain skilled personnel;
ability to develop, implement and support technology and information systems sufficient to manage our business effectively;
nonperformance of counterparties to uncleared and cleared derivative transactions;
changes in terms of derivative agreements and similar agreements;
loss arising from natural disasters, acts of war or acts of terrorism;
changes in or differing interpretations of accounting guidance; and
other risk factors identified in our filings with the SEC.

Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, additional disclosures may be made through reports filed with the SEC in the future, including our Forms 10-K, 10-Q and 8-K.
 




PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
Federal Home Loan Bank of Indianapolis
Statements of Condition
(Unaudited, $ amounts in thousands, except par value)
 
September 30, 2019
 
December 31, 2018
Assets:
 
 
 
Cash and due from banks
$
49,845

 
$
100,735

Interest-bearing deposits
505,672

 
1,210,705

Securities purchased under agreements to resell
3,550,000

 
3,212,726

Federal funds sold
1,415,000

 
3,085,000

Trading securities (Note 3)
4,411,301

 

Available-for-sale securities (Note 3)
8,381,973

 
7,703,596

Held-to-maturity securities (estimated fair values of $4,971,803 and $5,676,145, respectively) (Note 3)
4,961,209

 
5,673,720

Advances (Note 4)
32,487,260

 
32,727,668

Mortgage loans held for portfolio, net of allowance for loan losses of $(450) and $(600), respectively (Notes 5 and 6)
11,104,279

 
11,384,978

Accrued interest receivable
132,566

 
124,611

Premises, software, and equipment, net
36,664

 
37,198

Derivative assets, net (Note 7)
186,871

 
116,764

Other assets
39,128

 
33,998

 
 
 
 
Total assets
$
67,261,768

 
$
65,411,699

 
 
 
 
 
 
 
 
Liabilities:
 

 
 
Deposits
$
713,115

 
$
500,440

Consolidated obligations (Note 8):
 

 
 
Discount notes
15,300,029

 
20,895,262

Bonds
47,168,731

 
40,265,465

Total consolidated obligations, net
62,468,760

 
61,160,727

Accrued interest payable
176,724

 
179,728

Affordable Housing Program payable (Note 9)
37,070

 
40,747

Derivative liabilities, net (Note 7)
4,720

 
21,067

Mandatorily redeemable capital stock (Note 10)
323,712

 
168,876

Other liabilities
451,991

 
289,665

 
 
 
 
Total liabilities
64,176,092

 
62,361,250

 
 
 
 
Commitments and contingencies (Note 14)


 


 
 
 
 
Capital (Note 10):
 

 
 
Capital stock (putable at par value of $100 per share):
 
 
 
Class B-1 issued and outstanding shares:
19,391,457 and 19,306,333, respectively
1,939,146

 
1,930,633

Class B-2 issued and outstanding shares: 3,028 and 3,192, respectively
303

 
319

     Total capital stock
1,939,449

 
1,930,952

Retained earnings:
 
 
 
Unrestricted
849,264

 
855,311

Restricted
241,316

 
222,499

Total retained earnings
1,090,580

 
1,077,810

Total accumulated other comprehensive income (Note 11)
55,647

 
41,687

 
 
 
 
Total capital
3,085,676

 
3,050,449

 
 
 
 
Total liabilities and capital
$
67,261,768

 
$
65,411,699


The accompanying notes are an integral part of these financial statements.

4



Federal Home Loan Bank of Indianapolis
Statements of Income
(Unaudited, $ amounts in thousands)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
 
2019
 
2018
 
2019
 
2018
Interest Income:
 
 
 
 
 
 
 
Advances
$
207,226

 
$
197,263

 
$
641,126

 
$
518,802

Interest-bearing deposits
6,923

 
5,801

 
16,610

 
12,880

Securities purchased under agreements to resell
24,212

 
19,868

 
69,872

 
40,680

Federal funds sold
10,163

 
15,239

 
50,678

 
35,160

Trading securities
18,441

 

 
31,896

 

Available-for-sale securities
48,360

 
52,071

 
154,627

 
140,561

Held-to-maturity securities
36,388

 
39,258

 
116,245

 
111,298

Mortgage loans held for portfolio
87,741

 
90,561

 
277,440

 
259,690

Other interest income

 

 

 
17

Total interest income
439,454


420,061

 
1,358,494


1,119,088

 
 
 
 
 
 
 
 
Interest Expense:
 
 
 
 
 
 
 
Consolidated obligation discount notes
110,286

 
113,705

 
368,799

 
274,162

Consolidated obligation bonds
271,639

 
228,610

 
803,497

 
617,906

Deposits
3,655

 
2,932

 
10,170

 
7,542

Mandatorily redeemable capital stock
3,514

 
1,927

 
8,585

 
6,557

Other interest expense
36

 

 
36

 

Total interest expense
389,130

 
347,174

 
1,191,087


906,167

 
 
 
 
 
 
 
 
Net interest income
50,324

 
72,887

 
167,407

 
212,921

Provision for (reversal of) credit losses
(180
)
 
102

 
(166
)
 
(359
)
 
 
 
 
 
 
 
 
Net interest income after provision for credit losses
50,504

 
72,785

 
167,573

 
213,280

 
 
 
 
 
 
 
 
Other Income:
 
 
 
 
 
 
 
Net realized gains from sale of available-for-sale securities

 

 

 
32,407

Net realized losses from sale of held-to-maturity securities

 

 

 
(45
)
Net gains on trading securities
5,601

 

 
26,257

 

Net losses on derivatives and hedging activities
(3,612
)
 
(8,160
)
 
(21,399
)
 
(5,216
)
Service fees
186

 
278

 
581

 
783

Standby letters of credit fees
201

 
123

 
503

 
414

Other, net
410

 
931

 
3,328

 
1,324

Total other income (loss)
2,786

 
(6,828
)
 
9,270

 
29,667

 
 
 
 
 
 
 
 
Other Expenses:
 
 
 
 
 
 
 
Compensation and benefits
12,698

 
12,306

 
40,255

 
38,164

Other operating expenses
7,925

 
7,216

 
21,045

 
20,566

Federal Housing Finance Agency
1,012

 
853

 
3,009

 
2,616

Office of Finance
1,370

 
1,078

 
3,515

 
3,509

Other
1,154

 
975

 
3,526

 
3,859

Total other expenses
24,159

 
22,428

 
71,350

 
68,714

 
 
 
 
 
 
 
 
Income before assessments
29,131

 
43,529

 
105,493

 
174,233

 
 
 
 
 
 
 
 
Affordable Housing Program assessments
3,265

 
4,546

 
11,408

 
18,079

 
 
 
 
 
 
 
 
Net income
$
25,866

 
$
38,983

 
$
94,085

 
$
156,154


The accompanying notes are an integral part of these financial statements.

5



Federal Home Loan Bank of Indianapolis
Statements of Comprehensive Income
(Unaudited, $ amounts in thousands)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
Net income
$
25,866

 
$
38,983

 
$
94,085

 
$
156,154

 
 
 
 
 
 
 
 
Other Comprehensive Income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net change in unrealized gains (losses) on available-for-sale securities
(2,139
)
 
9,043

 
16,842

 
19,015

 
 
 
 
 
 
 
 
Net non-credit portion of other-than-temporary impairment losses





 
(29,271
)
 
 
 
 
 
 
 
 
Pension benefits, net
486

 
636

 
(2,882
)
 
(5,580
)
 
 
 
 
 
 
 
 
Total other comprehensive income (loss)
(1,653
)

9,679


13,960


(15,836
)
 
 
 
 
 
 
 
 
Total comprehensive income
$
24,213

 
$
48,662

 
$
108,045


$
140,318


The accompanying notes are an integral part of these financial statements.

6



Federal Home Loan Bank of Indianapolis
Statements of Capital
Three Months Ended September 30, 2018 and 2019
(Unaudited, $ amounts and shares in thousands)
 
 
Capital Stock
 
Retained Earnings
 
Accumulated
Other
Comprehensive
Income
 
Total
Capital
 
 
Shares
 
Par Value
 
Unrestricted
 
Restricted
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, June 30, 2018
 
18,922

 
$
1,892,194

 
$
835,888

 
$
206,986

 
$
1,042,874

 
$
85,891

 
$
3,020,959

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total comprehensive income
 
 
 
 
 
31,187

 
7,796

 
38,983

 
9,679

 
48,662

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from issuance of capital stock
 
120

 
12,095

 
 
 
 
 
 
 
 
 
12,095

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Redemption/repurchase of capital stock
 

 
(32
)
 
 
 
 
 
 
 
 
 
(32
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares reclassified to mandatorily redeemable capital stock, net
 
(35
)
 
(3,560
)
 
 
 
 
 
 
 
 
 
(3,560
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distributions on mandatorily redeemable capital stock
 
 
 
 
 
(33
)
 

 
(33
)
 
 
 
(33
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash dividends on capital stock
(4.50% annualized)
 
 
 
 
 
(21,120
)
 

 
(21,120
)
 
 
 
(21,120
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, September 30, 2018
 
19,007

 
$
1,900,697

 
$
845,922

 
$
214,782

 
$
1,060,704

 
$
95,570

 
$
3,056,971

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, June 30, 2019
 
20,485

 
$
2,048,523

 
$
856,911

 
$
236,142

 
$
1,093,053

 
$
57,300

 
$
3,198,876

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total comprehensive income
 
 
 
 
 
20,692

 
5,174

 
25,866

 
(1,653
)
 
24,213

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from issuance of capital stock
 
398

 
39,796

 
 
 
 
 
 
 
 
 
39,796

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares reclassified to mandatorily redeemable capital stock, net
 
(1,489
)
 
(148,870
)
 
 
 
 
 
 
 
 
 
(148,870
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distributions on mandatorily redeemable capital stock
 
 
 
 
 
(692
)
 

 
(692
)
 
 
 
(692
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash dividends on capital stock
(5.50% annualized)
 
 
 
 
 
(27,647
)
 

 
(27,647
)
 
 
 
(27,647
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, September 30, 2019
 
19,394

 
$
1,939,449

 
$
849,264

 
$
241,316

 
$
1,090,580

 
$
55,647

 
$
3,085,676



The accompanying notes are an integral part of these financial statements.

7



Federal Home Loan Bank of Indianapolis
Statements of Capital
Nine Months Ended September 30, 2018 and 2019
(Unaudited, $ amounts and shares in thousands)
 
 
Capital Stock
 
Retained Earnings
 
Accumulated
Other
Comprehensive
Income
 
Total
Capital
 
 
Shares
 
Par Value
 
Unrestricted
 
Restricted
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, December 31, 2017
 
18,578

 
$
1,857,766

 
$
792,783

 
$
183,551

 
$
976,334

 
$
111,406

 
$
2,945,506

 
 
 
 
 
 
 
 
 
 

 
 
 
 
Total comprehensive income
 
 
 
 
 
124,923

 
31,231

 
156,154

 
(15,836
)
 
140,318

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from issuance of capital stock
 
696

 
69,686

 
 
 
 
 
 
 
 
 
69,686

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Redemption/repurchase of capital stock
 

 
(32
)
 
 
 
 
 
 
 
 
 
(32
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares reclassified to mandatorily redeemable capital stock, net
 
(267
)
 
(26,723
)
 
 
 
 
 
 
 
 
 
(26,723
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distributions on mandatorily redeemable capital stock
 
 
 
 
 
(38
)
 

 
(38
)
 
 
 
(38
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash dividends on capital stock
(5.16% annualized)
 
 
 
 
 
(71,746
)
 

 
(71,746
)
 
 
 
(71,746
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, September 30, 2018
 
19,007

 
$
1,900,697

 
$
845,922

 
$
214,782

 
$
1,060,704

 
$
95,570

 
$
3,056,971

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, December 31, 2018
 
19,310

 
$
1,930,952

 
$
855,311

 
$
222,499

 
$
1,077,810

 
$
41,687

 
$
3,050,449

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total comprehensive income
 
 
 
 
 
75,268

 
18,817

 
94,085

 
13,960

 
108,045

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from issuance of capital stock
 
1,594

 
159,476

 
 
 
 
 
 
 
 
 
159,476

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares reclassified to mandatorily redeemable capital stock, net
 
(1,510
)
 
(150,979
)
 
 
 
 
 
 
 
 
 
(150,979
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distributions on mandatorily redeemable capital stock
 
 
 
 
 
(693
)
 

 
(693
)
 
 
 
(693
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash dividends on capital stock
(5.50% annualized)
 
 
 
 
 
(80,622
)
 

 
(80,622
)
 
 
 
(80,622
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, September 30, 2019
 
19,394

 
$
1,939,449

 
$
849,264

 
$
241,316

 
$
1,090,580

 
$
55,647

 
$
3,085,676




The accompanying notes are an integral part of these financial statements.

8



Federal Home Loan Bank of Indianapolis
Statements of Cash Flows
(Unaudited, $ amounts in thousands)
 
Nine Months Ended September 30,
 
2019
 
2018
Operating Activities:
 
 
 
Net income
$
94,085

 
$
156,154

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
 
 
 
Amortization and depreciation
61,251

 
50,484

Changes in net derivative and hedging activities
(348,291
)
 
188,223

Provision for (reversal of) credit losses
(166
)
 
(359
)
Net gains on trading securities
(26,257
)
 

Net realized gains from sale of available-for-sale securities

 
(32,407
)
Net realized losses from sale of held-to-maturity securities

 
45

Changes in:
 
 
 
Accrued interest receivable
(8,667
)
 
(17,242
)
Other assets
(736
)
 
1,290

Accrued interest payable
(3,243
)
 
31,439

Other liabilities
16,652

 
49,796

Total adjustments, net
(309,457
)
 
271,269

 
 
 
 
Net cash provided by (used in) operating activities
(215,372
)
 
427,423

 
 
 
 
Investing Activities:
 
 


Net change in:
 
 
 
Interest-bearing deposits
221,363

 
(704,317
)
Securities purchased under agreements to resell
(337,274
)
 
(565,888
)
Federal funds sold
1,670,000

 
(2,118,000
)
Trading securities:
 
 
 
Purchases
(4,385,044
)
 

Available-for-sale securities:
 
 
 
Proceeds from maturities
510,500

 
80,172

Proceeds from sales

 
203,841

Purchases
(610,415
)
 
(773,346
)
Held-to-maturity securities:
 
 
 
Proceeds from maturities
813,026

 
755,770

Proceeds from sales

 
41,226

Purchases
(109,369
)
 
(712,272
)
Advances:
 
 
 
Principal repayments
289,850,757

 
250,517,838

Disbursements to members
(289,182,302
)
 
(250,185,035
)
Mortgage loans held for portfolio:
 
 
 
Principal collections
1,211,661

 
910,622

Purchases from members
(876,635
)
 
(1,874,800
)
Purchases of premises, software, and equipment
(4,596
)
 
(3,989
)
Loans to other Federal Home Loan Banks:
 
 
 
Principal repayments

 
400,000

Disbursements

 
(400,000
)
 
 
 
 
Net cash used in investing activities
(1,228,328
)
 
(4,428,178
)
 



(continued)

The accompanying notes are an integral part of these financial statements.

9



Federal Home Loan Bank of Indianapolis
Statements of Cash Flows, continued
(Unaudited, $ amounts in thousands)
 
Nine Months Ended September 30,
 
2019
 
2018
Financing Activities:
 
 
 
Changes in deposits
128,515

 
38,839

Net payments on derivative contracts with financing elements
185

 
(2,242
)
Net proceeds from issuance of consolidated obligations:
 
 
 
Discount notes
245,285,750

 
254,190,275

Bonds
28,145,595

 
13,074,648

Payments for matured and retired consolidated obligations:
 
 
 
Discount notes
(250,889,998
)
 
(251,909,384
)
Bonds
(21,359,255
)
 
(11,302,290
)
Loans from Other Federal Home Loan Banks:
 
 
 
Proceeds from borrowings
250,000

 

Principal payments
(250,000
)
 

Proceeds from issuance of capital stock
159,476

 
69,686

Proceeds from issuance of mandatorily redeemable capital stock
3,704

 

Payments for redemption/repurchase of capital stock

 
(32
)
Payments for redemption/repurchase of mandatorily redeemable capital stock
(540
)
 
(26,649
)
Dividend payments on capital stock
(80,622
)
 
(71,746
)
 
 
 
 
Net cash provided by financing activities
1,392,810

 
4,061,105

 
 
 
 
Net increase (decrease) in cash and due from banks
(50,890
)
 
60,350

 
 
 
 
Cash and due from banks at beginning of period
100,735

 
55,269

 
 
 
 
Cash and due from banks at end of period
$
49,845

 
$
115,619

 
 
 
 
Supplemental Disclosures:
 
 
 
Interest payments
$
1,158,294

 
$
841,065

Affordable Housing Program payments
15,085

 
12,770

Purchases of AFS securities, traded but not yet settled
54,609

 
44,583

Capitalized interest on certain held-to-maturity securities
3,900

 
3,480

Par value of shares reclassified to mandatorily redeemable capital stock, net
150,979

 
26,723

 

The accompanying notes are an integral part of these financial statements.

10



Federal Home Loan Bank of Indianapolis
Notes to Financial Statements
(Unaudited, $ amounts in thousands unless otherwise indicated)


Note 1 - Summary of Significant Accounting Policies

Unless the context otherwise requires, the terms "we," "us," "our," and "Bank" refer to the Federal Home Loan Bank of Indianapolis or its management. We use acronyms and terms throughout these Notes to Financial Statements that are defined herein or in the Glossary of Terms.

Basis of Presentation. The accompanying interim financial statements have been prepared in accordance with GAAP and SEC requirements for interim financial information. Accordingly, they do not include all of the information and disclosures required by GAAP for complete financial statements. Certain disclosures that would have substantially duplicated the disclosures in the financial statements, and notes thereto, included in our 2018 Form 10-K have been omitted unless the information contained in those disclosures materially changed. Therefore, these interim financial statements should be read in conjunction with our audited financial statements, and notes thereto, included in our 2018 Form 10-K.

The financial statements contain all adjustments that are, in the opinion of management, necessary for a fair statement of our financial position, results of operations and cash flows for the interim periods presented. All such adjustments were of a normal recurring nature. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full calendar year or any other interim period.

Our significant accounting policies and certain other disclosures are set forth in our 2018 Form 10-K in Note 1 - Summary of Significant Accounting Policies. See Note 2 - Recently Adopted and Issued Accounting Guidance for the changes effective January 1, 2019.

Use of Estimates. When preparing financial statements in accordance with GAAP, we are required to make subjective assumptions and estimates that may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of income and expense. The most significant estimates pertain to derivatives and hedging activities, fair value and provision for credit losses. Although the reported amounts and disclosures reflect our best estimates, actual results could differ significantly from these estimates.

Note 2 - Recently Adopted and Issued Accounting Guidance

Recently Adopted Accounting Guidance.

Leases (ASU 2016-02). On February 25, 2016, the FASB issued guidance that requires a lessee, in an operating or finance lease, to recognize on the statement of condition a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. However, for a lease with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize a lease asset and lease liability. Under previous guidance, a lessee was not required to recognize a lease asset and lease liability arising from an operating lease on the statement of condition. While this guidance does not fundamentally change lessor accounting, some changes have been made to align that guidance with the lessee guidance and other areas within GAAP.

This guidance was effective for the interim and annual periods beginning on January 1, 2019. Upon adoption, we reported higher assets and liabilities as a result of including right-of-use assets and lease liabilities on the statement of condition, but its effect on our financial condition, results of operations, and cash flows was not material.

Premium Amortization on Purchased Callable Debt Securities (ASU 2017-08). On March 30, 2017, the FASB issued guidance to shorten the amortization period for certain callable debt securities purchased at a premium. Specifically, the guidance requires the premium to be amortized to the earliest call date. No change is required for securities purchased at a discount, which continue to be amortized to their contractual maturities.

This guidance was effective for the interim and annual periods beginning on January 1, 2019. The adoption of this guidance had no effect on our financial condition, results of operations, or cash flows.




Notes to Financial Statements, continued
(Unaudited, $ amounts in thousands unless otherwise indicated)




(Unaudited, $ amounts in thousands unless otherwise indicated)

Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12). On August 28, 2017, the FASB issued amended guidance to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. This guidance requires that, for fair-value hedges, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness be presented in the same income statement line that is used to present the earnings effect of the hedged item.

This guidance was effective for the interim and annual periods beginning on January 1, 2019. The adoption of this guidance had no effect on our financial condition, net income, or cash flows. However, the adoption resulted in a prospective change in the statement of income in which the net losses resulting from the changes in the fair value of the hedging instruments and the changes in the fair value of the associated hedged items attributable to the hedged risk for qualifying fair-value hedging relationships for the three and nine months ended September 30, 2019 of $9,058 and $31,509, respectively, are presented in interest income instead of other income.

Inclusion of SOFR OIS Rate as a Benchmark Interest Rate for Hedge Accounting Purposes (ASU 2018-16). On October 25, 2018, to facilitate the LIBOR to SOFR transition, the FASB issued guidance permitting the use of the OIS rate based on SOFR as an eligible U.S. benchmark interest rate for hedge accounting purposes.

This guidance was effective for the interim and annual periods beginning on January 1, 2019, concurrent with the adoption of ASU 2017-12. The adoption of this guidance had no effect on our financial condition, results of operations, or cash flows.

Recently Issued Accounting Guidance.

Measurement of Credit Losses on Financial Instruments (ASU 2016-13). On June 16, 2016, the FASB issued guidance replacing the current incurred loss model. The guidance requires entities to measure expected credit losses based on consideration of a broad range of relevant information, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount of the financial instrument.

This guidance is effective for the interim and annual periods beginning on January 1, 2020. Early adoption is permitted; however, we plan to adopt this guidance on the effective date. This guidance should be applied using a modified-retrospective approach whereby a cumulative-effect adjustment is recorded to retained earnings as of the beginning of the first reporting period in which the guidance is adopted.

The adoption of this guidance is expected to have no effect on our allowance for credit losses for advances, investment securities, securities purchased under agreements to resell, or federal funds sold. The adoption may increase the allowance for loan losses for mortgage loans, primarily due to the requirement to measure expected credit losses for the entire estimated life of the loans, but the effect on our financial condition, results of operations and cash flows is not expected to be material.

Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13). On August 28, 2018, the FASB issued guidance to update the disclosure requirements for fair value measurement. This guidance was issued as part of the FASB's disclosure framework project and is intended to improve disclosure effectiveness.

The guidance is effective for the interim and annual periods beginning on January 1, 2020. Early adoption is permitted; however, we plan to adopt this guidance on the effective date. The adoption will have an effect on our disclosures, but will have no effect on our financial condition, results of operations or cash flows.





Notes to Financial Statements, continued
(Unaudited, $ amounts in thousands unless otherwise indicated)




(Unaudited, $ amounts in thousands unless otherwise indicated)

Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (ASU 2018-15). On August 29, 2018, the FASB issued guidance on implementation costs incurred in a hosting arrangement that is a service contract. The guidance aligns the requirements for capitalizing such costs with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software and hosting arrangements that include an internal-use software license.

This guidance is effective for the interim and annual periods beginning on January 1, 2020. Early adoption is permitted; however, we plan to adopt this guidance on the effective date. The adoption may increase the amount of capitalized costs, but the effect of this guidance on our financial condition, results of operations, and cash flows is not expected to be material.

Note 3 - Investment Securities

Trading Securities.
 
 
 
 
 
In January 2019, the Bank began purchasing U.S. Treasury securities to enhance its liquidity.

Net Gains (Losses) on Trading Securities. The following table presents net gains (losses) on trading securities, excluding any offsetting effect of gains (losses) on the associated derivatives.


 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2019
 
2018
 
2019
 
2018
Net gains on trading securities held at period end
 
$
5,601

 
$

 
$
26,257

 
$

Net gains (losses) on trading securities that sold/matured during the period
 

 

 

 

Net gains on trading securities
 
$
5,601

 
$

 
$
26,257

 
$


Available-for-Sale Securities.

Major Security Types. The following table presents our AFS securities by type of security.
 
 
 
 
Gross
 
Gross
 
 
 
 
Amortized
 
Unrealized
 
Unrealized
 
Estimated
September 30, 2019
 
Cost (1)
 
Gains
 
Losses
 
Fair Value
GSE and TVA debentures
 
$
3,919,035

 
$
29,729

 
$

 
$
3,948,764

GSE MBS
 
4,393,110

 
45,511

 
(5,412
)
 
4,433,209

Total AFS securities
 
$
8,312,145

 
$
75,240

 
$
(5,412
)
 
$
8,381,973

 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
GSE and TVA debentures
 
$
4,239,622

 
$
37,458

 
$

 
$
4,277,080

GSE MBS
 
3,410,988

 
27,797

 
(12,269
)
 
3,426,516

Total AFS securities
 
$
7,650,610

 
$
65,255

 
$
(12,269
)
 
$
7,703,596


(1) 
Includes adjustments made to the cost basis of an investment for accretion, amortization, collection of principal and, if applicable, fair-value hedging adjustments.





Notes to Financial Statements, continued
(Unaudited, $ amounts in thousands unless otherwise indicated)




(Unaudited, $ amounts in thousands unless otherwise indicated)

Unrealized Loss Positions. The following table presents impaired AFS securities (i.e., in an unrealized loss position), aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position.
 
 
Less than 12 months
 
12 months or More
 
Total
 
 
Estimated
 
Unrealized
 
Estimated
 
Unrealized
 
Estimated
 
Unrealized
September 30, 2019
 
Fair Value
 
Losses
 
Fair Value
 
Losses
 
Fair Value
 
Losses
GSE MBS
 
$
591,562

 
$
(3,419
)
 
$
341,999

 
$
(1,993
)
 
$
933,561

 
$
(5,412
)
Total impaired AFS securities
 
$
591,562

 
$
(3,419
)
 
$
341,999

 
$
(1,993
)
 
$
933,561

 
$
(5,412
)
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
GSE MBS
 
$
1,256,816

 
$
(12,269
)
 
$

 
$

 
$
1,256,816

 
$
(12,269
)
Total impaired AFS securities
 
$
1,256,816


$
(12,269
)

$


$


$
1,256,816


$
(12,269
)
 
 
 
 
 
 
 
 
 
Realized Gains and Losses. There were no sales of AFS securities during the three or nine months ended September 30, 2019. As of September 30, 2019, we had no intention of selling any AFS securities in an unrealized loss position nor did we consider it more likely than not that we will be required to sell these securities before our anticipated recovery of each security's remaining amortized cost basis.

During the nine months ended September 30, 2018, for strategic, economic and operational reasons, we sold all of our AFS and HTM investments in private-label RMBS and ABS. Of the OTTI AFS securities sold in 2018, none were in an unrealized loss position. Proceeds from the AFS sales totaled $203,841, resulting in realized gains of $32,407 determined by the specific identification method.
 
 
 
 
 
 
 
 
 
Held-to-Maturity Securities.

Major Security Types. The following table presents our HTM securities by type of security.
 
 
 
 
Gross
 
Gross
 
 
 
 
 
 
Unrecognized
 
Unrecognized
 
 
 
 
Amortized
 
Holding
 
Holding
 
Estimated
September 30, 2019
 
Cost (1)
 
Gains
 
Losses
 
 Fair Value
MBS:
 
 
 
 
 
 
 
 
Other U.S. obligations - guaranteed MBS
 
$
3,172,634

 
$
7,422

 
$
(8,945
)
 
$
3,171,111

GSE MBS
 
1,788,575

 
14,276

 
(2,159
)
 
1,800,692

Total HTM securities
 
$
4,961,209

 
$
21,698

 
$
(11,104
)
 
$
4,971,803

 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
MBS:
 
 
 
 
 
 
 
 
Other U.S. obligations - guaranteed MBS
 
$
3,468,882

 
$
11,034

 
$
(1,552
)
 
$
3,478,364

GSE MBS
 
2,204,838

 
7,673

 
(14,730
)
 
2,197,781

Total HTM securities
 
$
5,673,720

 
$
18,707

 
$
(16,282
)
 
$
5,676,145


(1) 
Carrying value equals amortized cost. Includes adjustments made to the cost basis of an investment for accretion, amortization and collection of principal.





Notes to Financial Statements, continued
(Unaudited, $ amounts in thousands unless otherwise indicated)




(Unaudited, $ amounts in thousands unless otherwise indicated)

Unrealized Loss Positions. The following table presents impaired HTM securities (i.e., in an unrealized loss position), aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position.
 
 
Less than 12 months
 
12 months or More
 
Total
 
 
Estimated
 
Unrealized
 
Estimated
 
Unrealized
 
Estimated
 
Unrealized
September 30, 2019
 
Fair Value
 
Losses
 
Fair Value
 
Losses
 
Fair Value
 
Losses
MBS:
 
 
 
 
 
 
 
 
 
 
 
 
Other U.S. obligations - guaranteed MBS
 
$
1,007,929

 
$
(5,522
)
 
$
749,836

 
$
(3,423
)
 
$
1,757,765

 
$
(8,945
)
GSE MBS
 
259,853

 
(375
)
 
305,097

 
(1,784
)
 
564,950

 
(2,159
)
Total impaired HTM securities
 
$
1,267,782

 
$
(5,897
)
 
$
1,054,933

 
$
(5,207
)
 
$
2,322,715

 
$
(11,104
)
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
MBS:
 
 
 
 
 
 
 
 
 
 
 
 
Other U.S. obligations - guaranteed MBS
 
$
829,121

 
$
(873
)
 
$
417,952

 
$
(679
)
 
$
1,247,073

 
$
(1,552
)
GSE MBS
 
435,756

 
(890
)
 
716,647

 
(13,840
)
 
1,152,403

 
(14,730
)
Total impaired HTM securities
 
$
1,264,877

 
$
(1,763
)
 
$
1,134,599

 
$
(14,519
)
 
$
2,399,476

 
$
(16,282
)

Realized Gains and Losses. There were no sales of HTM securities during the three or nine months ended September 30, 2019. As of September 30, 2019, we had no intention of selling any HTM securities in an unrealized loss position nor did we consider it more likely than not that we will be required to sell these securities before our anticipated recovery of each security's remaining amortized cost basis.

During the nine months ended September 30, 2018, for strategic, economic and operational reasons, we sold all of our AFS and HTM investments in private-label RMBS and ABS. The amortized cost of the HTM securities sold totaled $41,271. Proceeds from the HTM sales totaled $41,226, resulting in realized losses of $45 determined by the specific identification method. For each of these HTM securities, we had previously collected at least 85% of the principal outstanding at the time of acquisition due to prepayments or scheduled payments over the term. As such, the sales were considered maturities for purposes of security classification.
 
 
 
 
 
 
 
 
 
Other-Than-Temporary Impairment.

Evaluation Process and Results - AFS and HTM Securities.

Other U.S. and GSE Obligations and TVA Debentures. For other U.S. obligations, GSE obligations, and TVA debentures, we determined that, based on current expectations, the strength of the issuers' guarantees through direct obligations of or support from the United States government is sufficient to protect us from any losses. As a result, all of the gross unrealized losses as of September 30, 2019 are considered temporary.