The Bank offers a wide range of fixed and adjustable rate advance products with different maturities, interest rates, payment characteristics, and option features. Fixed rate advances generally have maturities ranging from one day to 30 years. Adjustable rate advances generally have maturities ranging from less than 30 days to 10 years, with the interest rates resetting periodically at a fixed spread to a specified index.

Redemption Terms. The Bank had advances outstanding, excluding overdrawn demand deposit accounts, at interest rates ranging from 0.13% to 8.57% at March 31, 2020, and 1.15% to 8.57% at December 31, 2019, as summarized below.



	March 31, 2020				December 31, 2019
Redemption Term	Amount Outstanding⁽¹⁾		Weighted Average Interest Rate		Amount Outstanding⁽¹⁾		Weighted Average Interest Rate
Within 1 year	$	37,311	1.04	%	$	32,351	1.91	%
After 1 year through 2 years	26,281		1.65		22,380		2.15
After 2 years through 3 years	3,784		2.12		4,847		2.08
After 3 years through 4 years	3,520		2.67		2,909		2.97
After 4 years through 5 years	4,308		1.43		1,461		2.32
After 5 years	1,684		2.40		1,140		2.96
Total par value	76,888		1.43	%	65,088		2.08	%
Valuation adjustments for hedging activities	812				203
Valuation adjustments under fair value option	172				83
Total	$	77,872			$	65,374

Many of the Bank’s advances are prepayable at the borrower’s option. However, when advances are prepaid, the borrower is generally charged a prepayment fee intended to make the Bank financially indifferent to the prepayment. In addition, for certain advances with full or partial prepayment symmetry, the Bank may charge the borrower a prepayment fee or pay the borrower a prepayment credit depending on certain circumstances, such as movements in interest rates, when the advance is prepaid. The Bank had advances with full prepayment symmetry outstanding totaling $23,430 at March 31, 2020, and $14,059 at December 31, 2019. The Bank had advances with partial prepayment symmetry outstanding totaling $3,387 at March 31, 2020, and $3,513 at December 31, 2019. Some advances may be repaid on pertinent call dates without prepayment fees (callable advances). The Bank had callable advances outstanding totaling $11,444 at March 31, 2020, and $14,024 at December 31, 2019.

The Bank had putable advances totaling $220 at March 31, 2020, and $20 at December 31, 2019. At the Bank’s discretion, the Bank may terminate these advances on predetermined exercise dates and offer replacement funding at prevailing market rates, subject to certain conditions. The Bank would typically exercise such termination rights when interest rates increase relative to contractual rates.

The following table summarizes advances at March 31, 2020, and December 31, 2019, by the earlier of the year of redemption term or next call date for callable advances and by the earlier of the year of redemption term or next put date for putable advances.



	Earlier of Redemption Term or Next Call Date				Earlier of Redemption Term or Next Put Date
	March 31, 2020		December 31, 2019		March 31, 2020		December 31, 2019
Within 1 year	$	43,383	$	39,075	$	37,531	$	32,371
After 1 year through 2 years	20,231		15,731		26,281		22,380
After 2 years through 3 years	3,782		4,800		3,784		4,847
After 3 years through 4 years	3,520		2,895		3,520		2,909
After 4 years through 5 years	4,288		1,447		4,308		1,461
After 5 years	1,684		1,140		1,464		1,120
Total par value	$	76,888	$	65,088	$	76,888	$	65,088

Concentration Risk. The following tables present the concentration in advances to the top five borrowers and their affiliates at March 31, 2020 and 2019. The tables also present the interest income from these advances before the impact of interest rate exchange agreements associated with these advances for the three months ended March 31, 2020 and 2019.



	March 31, 2020				Three Months Ended March 31, 2020
Name of Borrower	Advances Outstanding		Percentage of Total Advances Outstanding		Interest Income from Advances⁽¹⁾		Percentage of Total Interest Income from Advances
First Republic Bank	$	16,250	21	%	$	70	22	%
MUFG Union Bank, National Association	10,900		14		62		19
Wells Fargo & Company
Wells Fargo Financial National Bank West⁽²⁾	9,000		12		35		11
Wells Fargo Bank, National Association⁽³⁾	36		—		1		—
Subtotal Wells Fargo & Company	9,036		12		36		11
Bank of the West	8,206		11		21		7
JPMorgan Chase Bank, National Association⁽³⁾	3,053		4		25		8
Subtotal	47,445		62		214		67
Others	29,443		38		105		33
Total par value	$	76,888	100	%	$	319	100	%



	March 31, 2019				Three Months Ended March 31, 2019
Name of Borrower	Advances Outstanding		Percentage of Total Advances Outstanding		Interest Income from Advances⁽¹⁾		Percentage of Total Interest Income from Advances
MUFG Union Bank, National Association	$	14,550	21	%	$	103	22	%
JPMorgan Chase Bank, National Association⁽³⁾	8,358		12		60		13
Wells Fargo & Company
Wells Fargo Financial National Bank⁽²⁾	8,000		11		47		10
Wells Fargo Bank, National Association⁽³⁾	45		—		1		—
Subtotal Wells Fargo & Company	8,045		11		48		10
First Republic Bank	8,000		11		49		10
Bank of the West	6,807		10		43		9
Subtotal	45,760		65		303		64
Others	24,415		35		174		36
Total par value	$	70,175	100	%	$	477	100	%

The Bank held a security interest in collateral from each of the top five advances borrowers and their affiliates sufficient to support their respective advances outstanding, and the Bank does not expect to incur any credit losses on these advances.

Credit Risk Exposure and Security Terms. The Bank manages its credit exposure related to advances through an integrated approach that generally provides for a credit limit to be established for each borrower, includes an ongoing review of each borrower’s financial condition, and is coupled with conservative collateral and lending policies to limit the risk of loss while taking into account borrowers’ needs for a reliable funding source.

In addition, the Bank lends to eligible borrowers in accordance with federal law and Finance Agency regulations. Specifically, the Bank is required to obtain sufficient collateral to fully secure credit products up to the member’s total credit limit. Borrowers may pledge the following eligible assets to secure advances:

At March 31, 2020 and December 31, 2019, none of the Bank’s credit products were past due or on nonaccrual status. There were no troubled debt restructurings related to credit products during the three months ended March 31, 2020, or during 2019.

Based on the collateral pledged as security for advances, the Bank’s credit analyses of borrowers’ financial condition, repayment history on advances, and the Bank’s credit extension and collateral policies as of March 31, 2020, the Bank expects to collect all amounts due according to the contractual terms. Therefore, no allowance for losses on advances was deemed necessary by the Bank as of March 31, 2020, and December 31, 2019.

For more information on the credit risk exposure and security terms of advances, see “Item 8. Financial Statements and Supplementary Data – Note 10 – Allowance for Credit Losses” in the Bank’s 2019 Form 10-K



	March 31, 2020		December 31, 2019
Par value of advances:
Fixed rate:
Due within 1 year	$	21,846	$	15,327
Due after 1 year	28,277		21,337
Total fixed rate	50,123		36,664
Adjustable rate:
Due within 1 year	15,465		17,024
Due after 1 year	11,300		11,400
Total adjustable rate	26,765		28,424
Total par value	$	76,888	$	65,088

The Bank did not have any advances with embedded features that met the requirements to separate the embedded feature from the host contract and designate the embedded feature as a stand-alone derivative at March 31, 2020, or December 31, 2019. The Bank has generally elected to account for certain advances with embedded features under the fair value option, and these advances are carried at fair value on the Statements of Condition. For more information, see Note 11 – Derivatives and Hedging Activities and Note 12 – Fair Value.