Federal Home Loan Bank of Atlanta Reports Second Quarter

ATLANTA, July 29 2021 (GLOBE NEWSWIRE) — Federal Home Loan Bank of Atlanta (the Bank) today released preliminary unaudited financial highlights for the quarter ended June 30, 2021. All numbers shown below for the second 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 August 6, 2021.

Net income was $56 million for each of the quarters ended June 30, 2021 and 2020. Net interest income for the second quarter of 2021 increased by $4 million compared to the second quarter of 2020. Net income and net interest income for the second quarter of 2021 included a $30 million increase in prepayment charges, partially offset by a further $6 million decrease in derivative fair value adjustments and hedging, compared to the second quarter of 2020. The remaining decrease in net interest income and net income for the second quarter of 2021, compared to the second quarter of 2020, was mainly due to the reduction in advance balances and other interest-bearing assets, partially offset by lower interest rates which had a greater impact on interest-bearing liabilities than on interest-bearing assets.

Total assets as of June 30, 2021 were $78.9 billion, a decrease of $13.4 billion, or 14.51%, from December 31, 2020. Advances outstanding were $47.1 billion as of June 30, 2021, a decrease of $5.1 billion, or 9.76%, from December 31, 2020, due to lower demand for liquidity by Bank members. Retained earnings were $2.2 billion as of June 30, 2021 and December 31, 2020. Share capital was $2.4 billion as of June 30, 2021, a decrease of $630 million, or 20, 5%, 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 second quarter of 2021 translated into an annualized return on average equity (ROE) of 4.82%, compared to 3.01% for the second quarter of 2020. The deviation of ROE from the rate average secured overnight funding rose to 480 basis points for the second quarter. of 2021, compared to 296 basis points for the second quarter of 2020. As at June 30, 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. On July 1, 2021, the Bank moved to phase 3 of its return to office plan, which provides that up to 66% of Bank employees can work on site. On September 1, 2021, the Bank plans to increase its on-site capacity to 100%. 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 of the incapacity of a member of the management team.

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

Status declarations As of June 30, 2021 As of December 31, 2020
Advances $ 47,075 $ 52,168
Investments 30,078 36,380
Mortgages held for the portfolio, net 178 218
Total assets 78,904 92,295
Consolidated obligations, net 71,348 84,764
Total share capital 2,448 3,078
Retained earnings 2,240 2,198
Accumulated other comprehensive income (12 ) (16 )
total capital 4,676 5,260
Capital to Assets Ratio (GAAP) 5.93 % 5.70 %
Capital/asset ratio (regulatory) 5.94 % 5.72 %
Quarter ended June 30 Semester ended June 30
Operating results and performance ratios 2021 2020 2021 2020
Net interest income $ 94 $ 90 $ 173 $ 175
Standby letter of credit fees 3 5 seven 12
Other income 1 1 1 87
Total non-interest expense 35 34 71 92
Evaluation of the Affordable Housing Program seven 6 11 18
Net revenue 56 56 99 164
Average return on assets 0.28 % 0.14 % 0.23 % 0.21 %
return on average equity 4.82 % 3.01 % 4.06 % 4.47 %

The selected financial data above should be read in conjunction with the financial statements and notes and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in Q2 2021 Form 10-Q. Bank which should be filed on or about August 6th. , 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, 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 . Other 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 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.

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

Bernadine J. Perkins