Transactions with Related Parties

9 Months Ended

Sep. 30, 2020

The following table includes significant outstanding related party member-activity balances.


(in thousands)	September 30, 2020		December 31, 2019
Advances	$	15,976,534	$	34,748,867
Letters of credit (1)	2,953,466		2,418,025
MPF loans	498,825		455,600
Deposits	22,395		17,904
Capital stock	777,966		1,574,659

Note:

(1) Letters of credit are off-balance sheet commitments.

The following table summarizes the effects on the Statement of Income corresponding to the related party member balances above. Amounts related to interest expense on deposits were immaterial for the periods presented.


	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2020		2019		2020		2019
Interest income on advances	$	91,749	$	280,009	$	362,346	$	980,227
Interest income on MPF loans	6,101		6,774		19,021		21,603
Letters of credit fees	797		1,333		2,209		4,446

The following table summarizes the effect of the MPF activities with FHLBank of Chicago.


	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2020		2019		2020		2019
Servicing fee expense	$	988	$	911	$	2,958	$	2,613


(in thousands)	September 30, 2020		December 31, 2019
Interest-bearing deposits maintained with FHLBank of Chicago	$	7,291	$	5,173

From time to time, the Bank may borrow from or lend to other FHLBanks on a short-term uncollateralized basis. During the three months and nine months ended September 30, 2020, the total amount loaned to and repaid by other FHLBanks was $25.0 million. There was no lending activity during the three months ended September 30, 2019. During the nine months ended September 30, 2019, the total amount loaned to and repaid by other FHLBanks was $500.0 million. There was no borrowing activity during the three and nine months ended September 30, 2020 and 2019.

Subject to mutually agreed upon terms, on occasion, an FHLBank may transfer at fair value its primary debt obligations to another FHLBank. During the nine months ended September 30, 2020 and 2019, there were no transfers of debt between the Bank and another FHLBank.

From time to time, a member of one FHLBank may be acquired by a member of another FHLBank. When such an acquisition occurs, the two FHLBanks may agree to transfer at fair value the loans of the acquired member to the FHLBank of the surviving member. The FHLBanks may also agree to the purchase and sale of any related hedging instrument. The Bank had no such activity during the nine months ended September 30, 2020 and 2019.

In the ordinary course of business, the Bank may utilize products and services, provided at normal market rates and terms, from its members to support its operations. Additional discussions regarding related party transactions can be found in Note 17 to the audited financial statements in the Bank's 2019 Form 10-K.