Federal Home Loan Bank of Atlanta Announces Second Quarter 2024 Operating Highlights
26 July 2024 - 3:16AM
Federal Home Loan Bank of Atlanta (the Bank) today released
preliminary unaudited financial highlights for the quarter ended
June 30, 2024. All numbers reported below for the second
quarter of 2024 are approximate until the Bank announces unaudited
financial results in its Form 10-Q, which is expected to be filed
with the Securities and Exchange Commission (SEC) on or about
August 9, 2024.
Operating Results for the Second Quarter of 2024
- Net interest income for the second quarter of 2024 was $241
million, increasing slightly, compared to net interest income of
$234 million for the same period in 2023. Net income for the second
quarter of 2024 was $177 million, remaining relatively stable,
compared to net income of $174 million for the same period in 2023.
The increase in net interest income and net income are a result of
higher average interest rates, partially offset by a decrease in
average advance balances.
- The net yield on interest-earning assets for the second quarter
of 2024 was 61 basis points, an increase of 16 basis points,
compared to 45 basis points for the same period in 2023. Many of
the Bank's assets and liabilities are indexed to the Secured
Overnight Financing Rate (SOFR). Average daily SOFR during the
second quarter of 2024 was 5.32 percent compared to 4.97 percent
for the same period in 2023.
- For the three months ended June 30, 2024, average advance
balances were $106.6 billion, compared to average advance balances
of $154.5 billion for the same period in 2023.
- The Bank's second quarter 2024 performance resulted in an
annualized return on average equity (ROE) of 8.12 percent as
compared to 7.23 percent for the same period in 2023.
Financial Condition Highlights
- Total assets were $147.0 billion as of June 30, 2024, a
decrease of $5.4 billion from December 31, 2023.
- Advances outstanding were $94.2 billion as of June 30,
2024, remaining relatively stable from December 31, 2023.
- Total capital was $8.2 billion as of June 30, 2024, an
increase of $101 million from December 31, 2023. Retained
earnings increased to $2.7 billion as of June 30, 2024,
compared to $2.5 billion as of December 31, 2023.
- As of June 30, 2024, the Bank was in compliance with all
applicable regulatory capital and liquidity requirements.
Reliable Source of Liquidity
- During the first six months of 2024, the Bank originated a
total of $160.5 billion of advances, thereby providing significant
liquidity to its members to support lending and other activities in
their communities. The Bank is proud to continue to execute on its
mission to be a reliable source of liquidity and funding for its
members, while remaining adequately capitalized.
Commitment to Affordable Housing and Community Development
- The Bank commits 10 percent of its income before assessments to
support the affordable housing and community development needs of
communities served by its members as required by law, which
amounted to $72 million for the 2023 statutory Affordable Housing
Program (AHP) assessment available for funding in 2024. As of
June 30, 2024, the Bank has accrued $41 million to its AHP
pool of funds that will be available to the Bank’s members and
their communities in 2025 for funding of eligible projects.
- In January 2024, the Bank committed to voluntarily contribute
an additional 50 percent of its prior year statutory AHP assessment
to affordable housing, authorizing $36 million in voluntary housing
contributions consisting of $23 million in voluntary AHP
non-statutory contributions and $13 million in voluntary non-AHP
contributions. These amounts are anticipated to be expensed during
2024. Together with the $72 million from the 2023 statutory AHP
assessment, this will result in a total commitment by the Bank to
support affordable housing and community development needs of over
$100 million for 2024.
- Since the inception of its AHP in 1990, the Bank has awarded
more than $1.2 billion in AHP funds, assisting more than 177,000
households.
| Federal Home
Loan Bank of Atlanta |
| Financial
Highlights |
| (Preliminary
and unaudited) |
| (Dollars in
millions) |
| |
| Statements
of Condition |
As of June 30, 2024 |
|
As of December 31, 2023 |
|
|
Advances |
$ |
94,163 |
|
|
$ |
96,608 |
|
| |
Investments |
|
51,469 |
|
|
|
54,207 |
|
| |
Mortgage loans held for
portfolio, net |
|
96 |
|
|
|
103 |
|
| |
Total assets |
|
147,002 |
|
|
|
152,370 |
|
| |
Total consolidated
obligations, net |
|
135,642 |
|
|
|
141,572 |
|
| |
Total capital stock |
|
5,547 |
|
|
|
5,597 |
|
| |
Retained earnings |
|
2,670 |
|
|
|
2,524 |
|
| |
Accumulated other
comprehensive loss |
|
— |
|
|
|
(5 |
) |
| |
Total capital |
|
8,217 |
|
|
|
8,116 |
|
| |
Capital-to-assets ratio
(GAAP) |
|
5.59 |
% |
|
|
5.33 |
% |
| |
Capital-to-assets ratio
(Regulatory) |
|
5.59 |
% |
|
|
5.33 |
% |
| |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| Operating
Results and Performance Ratios |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
Net interest income |
$ |
241 |
|
|
$ |
234 |
|
|
$ |
495 |
|
|
$ |
408 |
|
| |
Standby letters of credit
fees |
|
4 |
|
|
|
2 |
|
|
|
8 |
|
|
|
4 |
|
| |
Other income |
|
1 |
|
|
|
3 |
|
|
|
3 |
|
|
|
— |
|
| |
Total noninterest
expense(1) |
|
50 |
|
|
|
46 |
|
|
|
94 |
|
|
|
82 |
|
| |
Affordable Housing Program
assessment |
|
19 |
|
|
|
19 |
|
|
|
41 |
|
|
|
33 |
|
| |
Net income |
|
177 |
|
|
|
174 |
|
|
|
371 |
|
|
|
297 |
|
| |
Return on average assets |
|
0.44 |
% |
|
|
0.33 |
% |
|
|
0.47 |
% |
|
|
0.30 |
% |
| |
Return on average equity |
|
8.12 |
% |
|
|
7.23 |
% |
|
|
8.67 |
% |
|
|
6.62 |
% |
__________ (1) Total noninterest expense
includes voluntary housing contributions of $10 million and $15
million for the three months ended June 30, 2024 and first six
month of 2024, respectively.
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 the Bank's Second Quarter 2024 Form 10-Q
expected to be filed with the SEC on or about August 9, 2024
which will be available at www.fhlbatl.com and on 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 mortgages and provide
economic development credit to neighborhoods and communities. The
Bank is a cooperative whose members are commercial banks, credit
unions, savings 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 (FHLBank System). Since
1990, the FHLBanks have awarded approximately $9.1 billion through
the AHP's competitive and homeownership set-aside programs,
assisting more than 1.2 million households.
For more information, visit our website at www.fhlbatl.com.
To the extent that the statements made in this announcement may
be deemed as “forward-looking statements”, they are made within the
meaning of the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995, which include statements with
respect to the Bank's beliefs, plans, objectives, goals,
expectations, anticipations, assumptions, estimates, intentions,
disbursements, expenses and program allocations for voluntary
contributions to affordable housing and community development and
future performance, and involve known and unknown risks,
uncertainties, and other factors, many of which may be beyond the
Bank's control, and which may cause the Bank's actual results,
performance, or achievements to be materially different from the
future results, performance, or achievements expressed or implied
by such forward-looking statements, and the reader is cautioned not
to place undue reliance on them, since those may not be realized
due to a variety of factors, including, without limitation:
legislative, regulatory and accounting actions, changes, approvals
or requirements; completion of the Bank’s financial closing
procedures and final accounting adjustments for the most recently
completed quarter; SOFR variations; future economic, liquidity and
market conditions (including in the housing market and banking
industry); changes in demand for advances, advance levels,
consolidated obligations of the Bank and/or the FHLBank System and
their market; changes in interest rates; changes in prepayment
speeds, default rates, delinquencies, and losses on mortgage-backed
securities; volatility of market prices, rates and indices that
could affect the value of financial instruments; changes in credit
ratings and/or the terms of derivative transactions; changes in
product offerings; political, national, and world events;
disruptions in information systems; membership changes; mergers and
acquisitions involving members; and other adverse developments or
events, including extraordinary or disruptive events, affecting the
market, involving other Federal Home Loan Banks, their members or
the FHLBank System in general, including acts or war and terrorism.
Additional factors that might cause the Bank's results to differ
from forward-looking statements are provided in detail in our
filings with the Securities and Exchange Commission, which are
available at www.sec.gov.
The forward-looking statements in this release speak only as of
the date that they are made, and the Bank has no obligation and
does not undertake to publicly update, revise, or correct any of
these statements after the date of this announcement, or after the
respective dates on which such statements otherwise are made,
whether as a result of new information, future events, or
otherwise, except as may be required by law. New factors may
emerge, and it is not possible 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 forward-looking statements.
CONTACT: Sheryl TouchtonFederal Home Loan Bank
of Atlantastouchton@fhlbatl.com404.716.4296