Federal Home Loan Bank of Atlanta Announces Second Quarter 2019 Operating Highlights
ATLANTA, July 25, 2019 (GLOBE NEWSWIRE) -- Federal Home Loan Bank of Atlanta (the Bank) today released preliminary unaudited financial highlights for the quarter ended June 30, 2019. All numbers reported below for the second quarter of 2019 are approximate until 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 August 8, 2019.
The Bank reported net income of $93 million for the second quarter of 2019, a decrease of $14 million from net income of $107 million for the second quarter of 2018. The decrease in net income for the second quarter of 2019 was primarily due to a decrease in interest rates.
As of June 30, 2019, the Bank had total assets of $149.7 billion, a decrease of $4.8 billion, or 3.10 percent, from December 31, 2018. The Bank's advances were $101.8 billion as of June 30, 2019, a decrease of $6.7 billion, or 6.16 percent, from December 31, 2018. The Bank's retained earnings balance was $2.1 billion as of June 30, 2019, an increase of $28 million, or 1.31 percent, from December 31, 2018. Capital stock was $5.2 billion as of June 30, 2019, a decrease of $290 million, or 5.29 percent, from December 31, 2018.
The Bank's second quarter 2019 performance resulted in an annualized return on average equity (ROE) of 5.12 percent as compared to 5.73 percent for the second quarter of 2018. The ROE spread to average three-month LIBOR decreased to 261 basis points for the second quarter of 2019, as compared to 339 basis points for the second quarter of 2018. As of June 30, 2019, the Bank was in compliance with its regulatory capital requirements.
Federal Home Loan Bank of Atlanta
Financial Highlights
(Preliminary and unaudited)
(Dollars in millions)
| Statements of Condition | As of June 30, 2019 | As of December 31, 2018 | ||||||
| Advances | $ | 101,776 | $ | 108,462 | ||||
| Investments | 46,645 | 44,309 | ||||||
| Mortgage loans held for portfolio, net | 328 | 360 | ||||||
| Total assets | 149,692 | 154,476 | ||||||
| Consolidated obligations, net | 140,301 | 145,139 | ||||||
| Total capital stock | 5,196 | 5,486 | ||||||
| Retained earnings | 2,138 | 2,110 | ||||||
| Accumulated other comprehensive income | 36 | 51 | ||||||
| Total capital | 7,370 | 7,647 | ||||||
| Capital-to-assets ratio (GAAP) | 4.92% | 4.95% | ||||||
| Capital-to-assets ratio (Regulatory) | 4.90% | 4.92% | ||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
| Operating Results and Performance Ratios | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||
| Net interest income | $ | 132 | $ | 131 | $ | 276 | $ | 266 | ||||||||||||
| Net impairment losses recognized in earnings | (2) | (1) | (3) | (1) | ||||||||||||||||
| Standby letters of credit fees | 6 | 7 | 13 | 13 | ||||||||||||||||
| Other income | — | 15 | 1 | 36 | ||||||||||||||||
| Total noninterest expense | 32 | 33 | 71 | 68 | ||||||||||||||||
| Affordable Housing Program assessment | 11 | 12 | 22 | 25 | ||||||||||||||||
| Net income | 93 | 107 | 194 | 221 | ||||||||||||||||
| Return on average assets | 0.25% | 0.28% | 0.27% | 0.29% | ||||||||||||||||
| Return on average equity | 5.12% | 5.73% | 5.41% | 5.87% | ||||||||||||||||
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 2019 Form 10-Q expected to be filed on or about August 8, 2019 with the SEC.
About the 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's members—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 awarded approximately $6.2 billion in Affordable Housing Program funds, assisting more than 911,000 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 with respect to 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 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 the forward-looking statements.
The forward-looking statements may not be realized due to a variety of factors, including without limitation any one or more of the following factors: 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; 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 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; and adverse developments or events affecting or involving other Federal Home Loan Banks or the FHLBank System in general. Additional factors that might cause the Bank's results to differ from these forward-looking statements are provided in detail in the Bank’s filings with the SEC, which are available at www.fhlbatl.com and www.sec.gov.
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. These statements 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 the forward-looking 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.
CONTACT: Peter E. Garuccio
Federal Home Loan Bank of Atlanta
pgaruccio@fhlbatl.com
404.888.8143
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