ATLANTA, July 28 10, 2022 (GLOBE NEWSWIRE) — Federal Home Loan Bank of Atlanta (the Bank) today released preliminary unaudited financial highlights for the quarter ended June 30, 2022. All numbers shown below for the second quarter of 2022 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 5, 2022.
Net income for the second quarter of 2022 was $27 million, down $29 million, from net income of $56 million for the second quarter of 2021. This difference in earnings net is mainly due to the absence of significant prepayment charges during the second quarter. of 2022 compared to $46 million of prepayment charges during the same period in 2021. This decrease was partially offset by an increase of $24 million related to higher advance balances. Additionally, during the second quarter of 2022, the Bank made a voluntary, non-statutory contribution of $5 million to its affordable housing program, which also reduced net income for the quarter.
Total assets as of June 30, 2022 were $118.2 billion, an increase of $39.4 billion, or 50.1%, from December 31, 2021. Advances outstanding were $72.3 billion as of June 30, 2022, an increase of $26.9 billion, or 59.2%, from December 31, 2021. Retained earnings did not change significantly as of June 30, 2022 from as of December 31, 2021, remaining at $2.2 billion. Share capital was $3.4 billion as of June 30, 2022, an increase of $1.1 billion, or 44.5%, from December 31, 2021. The increase in share capital was primarily due to an increase in advances which resulted in an increase in activity-based inventory. .
The Bank’s performance in the second quarter of 2022 translated into an annualized return on average equity (ROE) of 1.96%, compared to 4.82% for the second quarter of 2021. The deviation of ROE from the rate average secured overnight funding decreased to 125 basis points for the second quarter of 2022, compared to 480 basis points for the second quarter of 2021. As of June 30, 2022, the Bank was in compliance with its regulatory capital requirements.
Federal Home Loan Bank of Atlanta
(Preliminary and unaudited)
(in millions of dollars)
|Status declarations||As of June 30, 2022||As of December 31, 2021|
|Mortgages held for the portfolio, net||131||149|
|Total assets||118 191||78,746|
|Consolidated obligations, net||109,247||71,692|
|Total share capital||3,442||2,383|
|Accumulated other comprehensive income||(46||)||(16||)|
|Capital to Assets Ratio (GAAP)||4.77||%||5.84||%|
|Capital/asset ratio (regulatory)||4.81||%||5.86||%|
|Quarter ended June 30||Semester ended June 30|
|Operating results and performance ratios||2022||2021||2022||2021|
|Net interest income||$||71||$||94||$||139||$||173|
|Standby letter of credit fees||1||3||3||seven|
|Other (charges) income||(1||)||1||3||1|
|Total non-interest expense||41||35||75||71|
|Evaluation of the Affordable Housing Program||3||seven||seven||11|
|Average return on assets||0.10||%||0.28||%||0.14||%||0.23||%|
|return on average equity||1.96||%||4.82||%||2.52||%||4.06||%|
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 2022 Form 10-Q which should be filed on or around August 5. , 2022 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 (FHLBank System). Since 1990, the FHLBanks have provided approximately $7.3 billion in Affordable Housing Program funds, helping more than one million households.
For more information, visit our website at www.fhlbatl.com.
To the extent that statements made in this announcement qualify 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 regarding beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions and future performance of the Bank, and involve known and unknown risks, uncertainties and other factors, including many of which may be beyond the Bank’s control and which may cause the actual results, performance or achievements of the Bank to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, and the reader is cautioned not to place undue reliance on these, as these may not be realized due to a variety of factors, including co disregard, without limitation: legislative, regulatory and accounting measures, 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; SOFR variants; future economic and market conditions (including in 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 forward-looking statements are detailed in our filings with the Securities and Exchange Commission, which are available at www.sec.gov.
The forward-looking statements contained in this press release 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 these 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. 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.
CONTACT: Peter E. Garuccio
Federal Home Loan Bank of Atlanta