Allowance for Credit Losses

6 Months Ended

Jun. 30, 2019

The following table presents the activity in the allowance for credit losses related to conventional residential mortgage loans.



	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2019		2018		2019		2018
Balance, beginning of period	$	1	$	1	$	1	$	1
Provision for credit losses	—		—		—		—
Balance, end of period	$	1	$	1	$	1	$	1

The following table presents the recorded investment in conventional residential mortgage loans by impairment methodology.



	As of June 30, 2019		As of December 31, 2018
Allowance for credit losses:
Collectively evaluated for impairment	$	1	$	1
Recorded investment:
Individually evaluated for impairment	$	9	$	9
Collectively evaluated for impairment	299		330
Total recorded investment	$	308	$	339

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 June 30, 2019
	Conventional Residential Mortgage Loans			Government-guaranteed or Insured Residential Mortgage Loans			Total
Past due 30-59 days	$	8		$	3		$	11
Past due 60-89 days	2			—			2
Past due 90 days or more	5			—			5
Total past due mortgage loans	15			3			18
Total current mortgage loans	293			19			312
Total mortgage loans ⁽¹⁾	$	308		$	22		$	330
Other delinquency statistics:
In process of foreclosure ⁽²⁾	$	1		$	—		$	1
Seriously delinquent rate ⁽³⁾	1.49		%	0.57		%	1.43		%
Past due 90 days or more and still accruing interest ⁽⁴⁾	$	—		$	—		$	—
Mortgage loans on nonaccrual status ⁽⁵⁾	$	5		$	—		$	5

____________

(1) The difference between the recorded investment and the carrying value of total mortgage loans of $1 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 categories 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, 2018
	Conventional Residential Mortgage Loans			Government-guaranteed or Insured Residential Mortgage Loans			Total
Past due 30-59 days	$	8		$	2		$	10
Past due 60-89 days	3			—			3
Past due 90 days or more	6			—			6
Total past due mortgage loans	17			2			19
Total current mortgage loans	322			21			343
Total mortgage loans ⁽¹⁾	$	339		$	23		$	362
Other delinquency statistics:
In process of foreclosure ⁽²⁾	$	2		$	—		$	2
Seriously delinquent rate ⁽³⁾	1.93		%	1.23		%	1.89		%
Past due 90 days or more and still accruing interest ⁽⁴⁾	$	—		$	—		$	—
Mortgage loans on nonaccrual status ⁽⁵⁾	$	6		$	—		$	6

____________

⁽¹⁾ The difference between the recorded investment and the carrying value of total mortgage loans of $1 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 categories 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.

The financial amounts related to the Bank’s impaired loans and troubled debt restructurings are not material to the Bank’s financial condition or results of operations for the periods presented.