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ATLANTA, April 29, 2021 (GLOBE NEWSWIRE) – Atlanta Federal Home Loan Bank (the bank) today released preliminary unaudited financial highlights for the quarter ended March 31, 2021. All figures shown below for the first quarter of 2021 are approximate by the time the bank announces unaudited financial results in its Form 10-Q filing 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 a net income of $ 108 million for the first quarter of 2020. The decrease in net income was primarily due to a gain of $ 85 million from the Bank divested its private label mortgage-backed securities portfolio, which was partially offset by an additional $ 20 million voluntary retirement plan in the first quarter of 2020. Additionally, net interest income for the first quarter of 2021 decreased $ 6 million 2020 from the first quarter of 2021. This decrease in net interest income was primarily due to a decrease in advances and other interest-bearing assets, partially offset by a decrease in interest rates that affected interest-bearing liabilities more than interest-bearing assets.
Total assets were $ 86.1 billion as of March 31, 2021, a decrease of $ 6.2 billion, or 6.72 percent, from December 31, 2020. Outstanding advances were $ 49.5 billion as of March 31, 2021, down $ 2.7 billion, or 5.18 percent. from December 31, 2020 due to the lower demand for liquidity. Retained earnings were $ 2.2 billion as of March 31, 2021 and December 31, 2020. Share capital was $ 2.5 billion as of March 31, 2021, a decrease of $ 535 million, or 17.4 percent, from $ 3.1 billion as of December 31, 2020 The decrease in share capital is mainly due to attributable to certain changes in the minimum capital requirements of members that the bank implemented in March 2021.
The bank’s performance in the first quarter of 2021 resulted in an annualized return on equity (ROE) of 3.35 percent compared to 5.97 percent in the first quarter of 2020. The ROE spread to the average secured overnight financing rate decreased to 331 basis points in the first quarter On March 31, 2021, the bank met its regulatory capital requirements.
As a financial institution, the bank is part of the country’s critical infrastructure, has operated its business continuously and continues to serve as a reliable source of funding for our members. The bank continues to work in phase 2 of its return plan, which allows up to 33 percent of the bank’s employees to work on site. To date, the Bank has not had any material operational difficulties or disruptions, but there is a possibility that the Bank’s ability to conduct and manage its business effectively will be affected. To date, no member of the bank’s management has been incapacitated or unable to perform duties. The bank’s board of directors regularly reviews the bank’s succession plan in the event a member of the executive team is incapacitated.
Federal Home Loan Bank of AtlantaFinancial highlights (Preliminary and unchecked)(Dollars to millions)
|State declarations||As of March 31, 2021||As of December 31, 2020|
|Mortgage loan held for portfolio, net||199||218|
|Consolidated commitments, net||78.376||84,764|
|Cumulative other comprehensive loss||(13||)||(16||)|
|Capital-asset ratio (GAAP)||5.51||%.||5.70||%.|
|Ratio of capital to assets (regulatory)||5.52||%.||5.72||%.|
|Three months to March 31|
|Operating results and key performance indicators||2021||2020|
|Net interest income||$||79||$||85|
|Standby letter of credit fees||4th||7th|
|Different income||– –||86|
|Total interest-independent expense||36||58|
|Evaluation of the affordable housing program||4th||12th|
|Return on average wealth||0.19||%.||0.28||%.|
|Return on equity||3.35||%.||5.97||%.|
The selected financial data selected 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” contained on the Bank’s Form 10-Q for the first quarter of 2021 and expected on or to be filed with the SEC around May 7, 2021.
Through the Atlanta Federal Home Loan BankFHLBank Atlanta provides competitive-priced finance, community development grants, and other banking services to help member financial institutions obtain affordable home mortgages and provide economic development loans to neighborhoods and communities. Members of the bank – its shareholders and customers – include commercial banks, credit unions, savings banks, community development financial institutions, and insurance companies 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 have provided approximately $ 6.6 billion in Affordable Housing Program funding to support more than 957,000 households.
For more information, please 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 contain statements about the bank’s beliefs, plans, goals and objectives, expectations, expectations, and beliefs , 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 could cause the bank’s actual results, performance or performance to differ materially from future performance Differentiate results, accomplishments, or successes expressed or implied in the forward-looking statements.
The forward-looking statements may not work due to a number of factors, including the impact of the COVID-19 pandemic on the bank, its employees, members and counterparties, or on the capital markets and the US economy. What effects are currently developing and not known could include effects on the bank’s business, liquidity, profitability, financial condition and results of operations, as well as the dividend. Additional factors include legislative, regulatory, and accounting measures, changes, permits, or requirements; Completion of the bank’s financial close procedures and final accounting adjustments for the most recently closed quarter; Uncertainties regarding the exit from LIBOR; future economic and market conditions (including housing market); Changes in demand for advances or consolidated commitments by the bank and / or the FHLBank system; Changes in interest rates; Changes in prepayment speeds, default rates, arrears and losses in mortgage-backed securities; Volatility of market prices, interest rates and indices that could affect the value of financial instruments; Changes in creditworthiness and / or the terms and conditions of derivative transactions; Changes in product offering; political, national, and global events, including the impact and results of the upcoming US national election; Disruptions in information systems; Membership changes; and adverse developments or events affecting or affecting other Federal Home Loan Banks or the FHLBank system in general. Additional 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, available at www.sec.gov.
New factors can arise and we are unable to predict the nature of each new factor or assess its potential impact on our business and financial condition. Given these uncertainties, we advise you not to place undue reliance on forward-looking statements. These statements speak only as of the date of their publication and the Bank undertakes no obligation and undertakes no obligation to publicly update, revise or revise any forward-looking statements after the date of this announcement or as the dates on which such statements are otherwise made it due to new information, future events or for other reasons, unless required by law.
CONTACT: Peter E. GaruccioFederal Home Loan Bank from [email protected]
Source: Federal Home Loan Bank of Atlanta