Federal Home Loan Bank of Atlanta Reports First Quarter

ATLANTA, April 29, 2021 (GLOBE NEWSWIRE) — Federal Home Loan Bank of Atlanta (the Bank) today released preliminary unaudited financial highlights for the quarter ended March 31, 2021. All figures shown below below for the first quarter of 2021 are approximate until the Bank announces unaudited financial results in its Form 10-Q filed with the Securities and Exchange Commission (SEC), which is expected to be filed on or about May 7, 2021.

Net income for the first quarter of 2021 was $43 million, a decrease of $65 million from net income of $108 million for the first quarter of 2020. The decrease in net income was primarily attributable to an $85 million gain from the sale of the Bank’s assets portfolio of private label mortgage-backed securities, partially offset by an additional voluntary contribution of $20 million to the pension plan, during the first quarter of 2020. In addition, net interest income for the first quarter of 2021 decreased by $6 million compared to the first quarter of 2020. This decrease in net interest income was mainly due to a decrease in advances and other interest-bearing assets, partially offset by lower interest rates which had more impact on po liabilities both interest and interest-bearing assets.

Total assets at March 31, 2021 were $86.1 billion, a decrease of $6.2 billion, or 6.72%, from December 31, 2020. Advances outstanding were $49.5 billion as of March 31, 2021, a decrease of $2.7 billion, or 5.18%, from December 31, 2020, due to lower demand for cash. Retained earnings were $2.2 billion at March 31, 2021 and December 31, 2020. Share capital was $2.5 billion at March 31, 2021, a decrease of $535 million, or 17, 4%, from $3.1 billion as of December 31, 2020. The decrease in share capital is primarily related to certain changes to minimum member share capital requirements that the Bank implemented in March 2021.

The Bank’s performance in the first quarter of 2021 translated into an annualized return on average equity (ROE) of 3.35%, compared to 5.97% for the first quarter of 2020. The deviation of ROE from the rate Average secured overnight funding fell to 331 basis points for the first quarter. of 2021, compared to 474 basis points for the first quarter of 2020. As at March 31, 2021, the Bank was in compliance with its regulatory capital requirements.

Operational status

As a financial institution, the Bank is part of the essential infrastructure of the country, has continuously operated its business and continued to be a reliable source of funding for our members. The Bank continues to operate in phase 2 of its return to office plan, which provides that up to 33% of Bank employees can work on site. To date, the Bank has not experienced any significant operational difficulties or disruptions, but the possibility exists which could adversely affect the Bank’s ability to effectively conduct and manage its business. To date, no member of the Bank’s management team has been incapacitated or unable to perform their duties. The Bank’s Board of Directors regularly reviews the Bank’s succession plan in the event that a member of the management team is unable to attend.

Federal Home Loan Bank of Atlanta
Financial Highlights
(Preliminary and unaudited)
(in millions of dollars)

Status declarations As of March 31, 2021 As of December 31, 2020
Advances $ 49,463 $ 52,168
Investments 32,880 36,380
Mortgages held for the portfolio, net 199 218
Total assets 86,095 92,295
Consolidated obligations, net 78,376 84,764
Total share capital 2,543 3,078
Retained earnings 2,211 2,198
Accumulated other comprehensive income (13 ) (16 )
total capital 4,741 5,260
Capital to Assets Ratio (GAAP) 5.51 % 5.70 %
Capital/asset ratio (regulatory) 5.52 % 5.72 %
Quarter ended March 31
Operating results and performance ratios 2021 2020
Net interest income $ 79 $ 85
Standby letter of credit fees 4 seven
Other income 86
Total non-interest expense 36 58
Evaluation of the Affordable Housing Program 4 12
Net revenue 43 108
Average return on assets 0.19 % 0.28 %
return on average equity 3.35 % 5.97 %

The selected financial data above should be read in conjunction with the financial statements and notes and the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the first quarter 2021 Form 10-Q of Bank which is expected to be filed on or about May 7th. , 2021 with the SEC.

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, FHLBanks has provided approximately $6.6 billion in Affordable Housing Program funds, helping more than 957,000 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 last completed quarter; 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 global events, including the impact and results of upcoming US national elections; 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.

Peter E. Garuccio
Federal Home Loan Bank of Atlanta
[email protected]

Bernadine J. Perkins