ATLANTA, Feb. 22 10, 2022 (GLOBE NEWSWIRE) — Federal Home Loan Bank of Atlanta (the Bank) today released preliminary unaudited financial highlights for the quarter and year ended December 31, 2021. All figures shown below below for 2021 are approximate through The Bank announces audited financial results in its Form 10-K filed with the Securities and Exchange Commission (SEC), which is expected to be filed on or about March 3, 2022.
Net income for the fourth quarter of 2021 was $7 million, a decrease of $28 million, compared to net income of $35 million for the fourth quarter of 2020. The decrease in net income for the fourth quarter was mainly due to a decrease of $25 million in net interest income. Net interest income for the fourth quarter of 2021 was reduced by $11 million due to derivative and hedging adjustments, while net interest income for the fourth quarter of 2020 benefited by $7 million dollars of derivatives and hedging adjustments. Adjustments to derivatives and hedging instruments are determined by changes in interest rates. The remaining decrease in net interest income is primarily attributable to the reduction in balances of advances and other interest-earning assets, partially offset by lower interest rates which had a greater impact on interest-bearing liabilities than interest-bearing assets.
Net income for the year ended December 31, 2021 was $133 million, a decrease of $122 million, from net income of $255 million for 2020. Interest for 2021 decreased by $52 million, compared to net interest income for 2020. Hedging adjustments contributed $26 million to the decrease in net interest income. The remaining decrease in net interest income is primarily attributable to the reduction in balances of advances and other interest-earning assets, partially offset by lower interest rates which had a greater impact on interest-bearing liabilities than interest-bearing assets. Other items that impacted 2020 net income included an $85 million gain from the sale of the Bank’s private label mortgage-backed investment portfolio and a $20 million voluntary contribution. to the pension plan.
Total assets as of December 31, 2021 were $78.7 billion, a decrease of $13.5 billion, or 14.7%, from December 31, 2020. Advances outstanding were $45.4 billion. billion as of December 31, 2021, a decrease of $6.8 billion, or 13.0%, from December 31, 2020, due to lower demand for liquidity by Bank members. Retained earnings were $2.2 billion as of December 31, 2021 and 2020. Share capital was $2.4 billion as of December 31, 2021, a decrease of $695 million, or 22.6% , compared to $3.1 billion as of December 31, 2020. The decrease in capital primarily due to lower advances, as well as certain changes to minimum member share capital requirements that the Bank implemented in March 2021.
The Bank’s performance in 2021 translated into an annualized return on average equity (ROE) of 2.79%, compared to 3.95% for 2020. The deviation of ROE from the average overnight rate the guaranteed day fell to 275 basis points for 2021, from 359 basis points. for 2020. As of December 31, 2021, the Bank was in compliance with its regulatory capital requirements.
Additional financial information regarding the Bank’s results of operations for the most recent quarter and year ended December 31, 2021 will be available in the Bank’s Form 10-K which the Bank expects to file on or about March 3, 2022. with securities. and Exchange Commission and will be available at www.fhlbatl.com Where www.sec.gov.
About Federal Home Loan Bank of Atlanta
FHLBank Atlanta offers competitively priced financing, community development grants, and other banking services to help member financial institutions make affordable home loans and provide economic development credit to neighborhoods and communities. The Bank’s members – its shareholders and customers – are commercial banks, credit unions, thrift institutions, community development financial institutions and insurance companies located in Alabama, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and the District of Columbia. . FHLBank Atlanta is one of 11 district banks in the Federal Home Loan Bank System. Since 1990, the FHLBanks have provided approximately $7 billion in Affordable Housing Program funds, helping more than 990,000 households.
For more information visit our website at www.fhlbatl.com.
Certain of the statements made in this announcement are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, which include statements regarding the Bank’s beliefs, plans, objectives, goals , expectations, anticipations, assumptions, estimates, intentions and future performance, and involve known and unknown risks, uncertainties and other factors, many of which may be beyond the control of the Bank and which may cause the Bank’s actual results, performance or performance. that the achievements are materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.
Forward-looking statements may not be materialized due to various factors, including, without limitation: the impact of the COVID-19 pandemic on the Bank, its employees, members and counterparties, or on the markets capital and the U.S. economy, the impact of which is evolving and unknowable at this time and could include impacts on the Bank’s operations, liquidity, profitability, financial condition and results of operations, and dividend . Additional factors include legislative, regulatory and accounting actions, changes, approvals or requirements; completion of the Bank’s financial close procedures and final accounting adjustments for the past quarter and year; uncertainties related to the phasing out of LIBOR; future economic and market conditions (including the housing market); changes in demand for advances or consolidated obligations of the Bank and/or the FHLBank system; changes in interest rates; changes in prepayment periods, default rates, defaults and losses on mortgage-backed securities; the volatility of market prices, rates and indices which may affect the value of financial instruments; changes in credit ratings and/or derivative transaction terms; changes in product offerings; political, national and world events; disruptions to information systems; membership changes; and adverse developments or events affecting or involving other Federal Home Lending Banks or the FHLBank system generally. Other factors that could cause the Bank’s results to differ from these forward-looking statements are detailed in our filings with the Securities and Exchange Commission, which are available at www.sec.gov.
New factors may appear and it is impossible for us to predict the nature of each new factor or assess its potential impact on our business and financial condition. Given these uncertainties, we caution you not to place undue reliance on any forward-looking statements. These statements speak only as of the date on which they are made, and the Bank has no obligation and undertakes no obligation to publicly update, revise or correct any of the forward-looking statements after the date of this announcement, or after the respective dates on which such statements are otherwise made, whether as a result of new information, future events or otherwise, except as required by law.
CONTACT: Peter E. Garuccio Federal Home Loan Bank of Atlanta [email protected] 404.888.8143