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28

Federal Home Loan Bank of Atlanta Announces Second Quarter 2011 Operating Highlights

ATLANTA, July 28, 2011 - Federal Home Loan Bank of Atlanta (the Bank) today released unaudited financial highlights for the quarter ended June 30, 2011. The Bank will announce full unaudited financial results in its Form 10-Q filing with the Securities and Exchange Commission, which is expected to be filed on or about August 10, 2011.

The Bank reported net income of approximately $38 million for the second quarter 2011, a decrease of approximately $37 million from net income of approximately $75 million for second quarter 2010. During the second quarter of 2010, the Bank reduced its provision for credit losses on a receivable due from an insolvent derivative counterparty by $49 million, which resulted in an increase in income for that period. The receivable was subsequently sold by the Bank during 2010; the receivable and related provision were reduced to zero. As of June 30, 2011, the Bank had total assets of approximately $116.8 billion, a decrease of $15 billion, or 11.4 percent, from December 31, 2010.

The Bank's retained earnings balance was approximately $1.2 billion as of June 30, 2011, an increase of approximately $60 million, or 5.32 percent, from December 31, 2010. Capital stock decreased from approximately $7.2 billion at December 31, 2010 to approximately $6.3 billion at June 30, 2011.

The Bank's second quarter 2011 performance resulted in an annualized return on equity (ROE) of 2.01 percent as compared to 3.64 percent for second quarter 2010. The ROE spread to average three-month LIBOR decreased to 1.75 percent for the second quarter 2011 compared to 3.20 percent for the second quarter 2010.

"Despite the current economic and regulatory environment, the Bank achieved a positive net income in the second quarter," said President and CEO Wesley McMullan. "We are focused on creating valuable partnerships with shareholders to deliver competitively-priced products that serve their current and future lending needs, as well as helping them to mitigate balance sheet risks."

Federal Home Loan Bank of Atlanta
Financial Highlights
(Unaudited)

(Dollars in millions)




Statements of Condition

As of June 30, 2011

 

As of December 31, 2010

 

Investments

$ 36,979

 

$ 39,879

 

Advances, net

77,427

 

89,258

 

Mortgage loans held for portfolio, net

1,827

 

2,039

 

Total assets

116,817

 

131,798

 

Consolidated obligations, net

105,213

 

119,113

 

Total capital stock

6,333

 

7,224

 

Retained earnings

1,184

 

1,124

 

Accumulated other comprehensive loss

(296)

 

(402)

 

Total capital

7,221

 

7,946

 

Capital-to-assets ratio (GAAP)

6.18%

 

6.03%

 

Capital-to-assets ratio (Regulatory)

6.76%

 

6.74%




 

Three Months Ended June 30,

 
 

2011

 

2010

 

Net interest income

$119

 

$136

 

Net impairment losses recognized in earnings

(37)

 

(72)

 

Other income

1

 

19

 

Total other expense

32

 

(19)

 

Total assessments

13

 

27

 

Net income

38

 

75

 

Return on average assets

0.13%

 

0.20%

 

Return on average equity

2.01%

 

3.64%

 

Additional financial information concerning the Bank's results of operations for the most recently completed quarter will be available in the Bank's Form 10-Q scheduled to be filed on or about August 10, 2011 with the Securities and Exchange Commission and will be available at www.fhlbatl.com or www.sec.gov.

* * * *

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 12 district banks in the Federal Home Loan Bank System which since 1990 has contributed more than $4 billion to the Affordable Housing Program.

For more information visit our website at www.fhlbatl.com.

Some of the statements made in this announcement are "forward-looking statements," 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 legislative and regulatory actions, changes or approvals; future economic and market conditions (including the housing market and the market for mortgage-backed securities); changes in demand for advances or consolidated obligations of the Bank and/or the FHLBank System; changes in interest rates and prepayment speeds, default rates, delinquencies and losses on mortgage-backed securities; political, national and world events; 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 our filings with the Securities and Exchange Commission, which are available at www.sec.gov.

New factors may emerge from time to time, and it is not possible for us to predict the nature, or assess the potential impact, of each new factor 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.

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Media Contacts

Sharon Cook 

Chief Marketing Officer

404.888.8173

scook@fhlbatl.com

 
Peter Garuccio

Assistant Director of Corporate Communications

404.888.8143

pgaruccio@fhlbatl.com