Federal Home Loan Bank of Atlanta Announces Third Quarter 2021 Operating Highlights | New
ATLANTA, Oct. 28, 2021 (GLOBE NEWSWIRE) – The Federal Home Loan Bank of Atlanta (the Bank) today released preliminary unaudited financial highlights for the quarter ended September 30, 2021. All figures shown here below for Q3 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 around November 5 2021.
Net income for the third quarter of 2021 was $ 27 million, a decrease of $ 29 million from net income of $ 56 for the third quarter of 2020. The decrease in net income is mainly due to a decrease of $ 30 million prepayment charge, which impacted both net interest income and net income. Prepayment charges for the third quarter of 2021 were $ 12 million, compared to $ 42 million for the third quarter of 2020.
Total assets as at September 30, 2021 were $ 77.5 billion, a decrease of $ 14.8 billion, or 16.0%, from December 31, 2020. Advances outstanding amounted to 43 , $ 8 billion as of September 30, 2021, a decrease of $ 8.4 billion, or 16.1%. as of December 31, 2020, due to the decrease in demand for liquidity from members of the Bank. Retained earnings were $ 2.2 billion as at September 30, 2021 and December 31, 2020. Share capital was $ 2.3 billion as at September 30, 2021, a decrease of $ 746 million. dollars, or 24.2%, compared to $ 3.1 billion as at December 31, 2020. The decrease in share capital is mainly related to certain changes in the minimum share capital requirements of members that the Bank has implemented in March 2021.
The Bank’s performance in the third quarter of 2021 resulted in an average annualized return on equity (ROE) of 2.31%, compared to 3.95% for the third quarter of 2020. The deviation of ROE from the average rate Overnight funding declined to 226 basis points for the third quarter. quarter of 2021, compared to 386 basis points for the third quarter of 2020. As of September 30, 2021, the Bank was in compliance with its regulatory capital requirements.
Operational Status As a financial institution, the Bank is part of the country’s essential infrastructure, has continuously operated its activities and has continued to serve as a reliable source of funding for our members. On July 1, 2021, the Bank moved to phase 3 of its back-to-office plan, which provides that up to 66% of the Bank’s employees can work on-site. Current Bank protocols only allow fully immunized employees and contractors to work on-site. To date, the Bank has not experienced any significant operational difficulties or disruptions, but they may affect the Bank’s ability to conduct and manage its affairs effectively. 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) ($ millions)
The financial data selected above should be read in conjunction with the financial statements and notes and “Management’s Discussion and Analysis of Financial Position and Results of Operations” included in Form 10-Q for the third quarter of 2021 of the Bank which should be deposited on or around November 5th. , 2021 with the SEC.
About Federal Home Loan Bank of Atlanta FHLBank Atlanta offers competitively priced finance, community development grants, and other banking services to help member financial institutions obtain affordable mortgages and provide home loans. economic development to neighborhoods and communities. The members of the Bank (its shareholders and customers) 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. 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.
Some 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 beliefs, plans, objectives, purposes of the Bank, expectations, expectations, assumptions, estimates, intentions and future performance, and involve risks, uncertainties and other known and unknown factors, many of which may be beyond the control of the Bank and that may cause results, performances or achievements to be materially different from the future results, performances or achievements expressed or implied by the forward-looking statements.
Forward-looking statements may not come to fruition due to various factors, including, but not limited to: the impact of the COVID-19 pandemic on the Bank, its employees, members and counterparties, or on the markets capital and the US 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 operating results, and the dividend. Other factors include actions, changes, approvals or legislative, regulatory and accounting requirements; completion of the Bank’s financial close procedures and final accounting adjustments for the last quarter ended; uncertainties associated with the phase-out of LIBOR; future economic and market conditions (including the housing market); changes in the demand for consolidated advances or obligations of the Bank and / or the FHLBank System; changes in interest rates; changes in prepayment speeds, default rates, defaults and losses on mortgage-backed securities; the volatility of market prices, rates and indices which 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 global events; disruption of information systems; membership changes; and adverse developments or events affecting or involving other Federal mortgage lending banks or the FHLBank system in general. Additional factors that could cause the Bank’s results to differ from these forward-looking statements are set out in detail in our filings with the Securities and Exchange Commission, which are available at www.sec.gov.
New factors may emerge, and it is not possible for us to predict the nature of each new factor, or to assess its potential impact, on our business and financial condition. In light of these uncertainties, we caution you not to place undue reliance on forward-looking statements. These statements are only valid on the date on which they are made, and the Bank has no obligation and does not undertake to publicly update, revise or correct any forward-looking statements after the date of this announcement, or after the respective dates. upon which such statements are 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