GIR Member Guide

TOGETHER WE BUILD

FEDERAL HOME LOAN BANK OF ATLANTA

OVERVIEW OF FEDERAL HOME LOAN BANKS

COOPERATIVELY OWNED FEDERAL HOME LOAN BANKS WERE CREATED BY CONGRESS IN 1932

11

MEMBER FINANCIAL INSTITUTIONS ACROSS THE COUNTRY RELY ON FHLBANKS FOR LIQUIDITY

6,500

MEMBERS INCLUDE BANKS, CREDIT UNIONS, INSURANCE COMPANIES, AND COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS (CDFIS)

FHLBanks are Self-Capitalizing Cooperatives

Members purchase stock and fully collateralize their borrowing
The capital structure of the FHLBanks allows them to expand and contract based on member liquidity needs

FHLBanks are Safe and Sound

No FHLBank has ever suffered a credit loss on a collateralized advance
FHLBanks obtain funds by selling debt
Each FHLBank is jointly and severally liable for the FHLBanks’ consolidated obligations

FHLBanks Liquidity is Reliable

It helps member financial institutions remain stable
It increases the availability of credit for residential mortgages and community investment activities
Access to capital in all economic cycles

FHLBanks Provide Access to the Capital Markets

Community financial institutions rely on the FHLBanks for capital market access, which translates to lower funding costs
Access to competitively priced funding levels the playing field for smaller institutions, allowing them to be more competitive in the marketplace

FHLBANK ATLANTA FACTS

The Federal Home Loan Bank of Atlanta (FHLBank Atlanta) is one of the 11 member-owned regional cooperative banks of the Federal Home Loan Bank System. The FHLBanks have the mission of providing member institutions with a reliable source of liquidity to support the financing of housing and community lending.

FHLBank Atlanta fulfills this mission by offering competitively-priced financing, affordable housing grants, and other banking services to help its members make affordable home mortgages, extend other credit, and support economic development in the communities they serve.

FHLBank Atlanta's members are located in Alabama, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and the District of Columbia.

Founded: 1932

Total Advances (loans): $45.4 billion (as of 12/31/2021)

Total Assets: $78.7 billion (as of 12/31/2021)

Net Income: $7 million (fourth quarter, 2021)

FHLBank Atlanta President and CEO: Kirk Malmberg

Headquarters: 1475 Peachtree St. N.E., Atlanta, GA 30309

Number of Employees: 308

FHLBANK ATLANTA DISTRICT

MEMBERS BY STATE AS OF 12/31/2021

122

154

170

67

90

115

80

14

NUMBER OF BANK MEMBERS

BY CHARTER TYPE AS OF 12/31/2021

FHLBank Atlanta is owned by its members and governed by a board of directors elected by its members.
FHLBank Atlanta’s members/owners include more than 800 financial institutions of all sizes and types. FHLBank Atlanta serves commercial banks, savings institutions, credit unions, insurance companies, and community development financial institutions.
Through its member institutions, FHLBank Atlanta delivers funding to facilitate local business growth, housing development and home purchases, and economic development in communities.
FHLBank Atlanta members are able to access low-cost or no-cost funding for affordable housing development and to assist homebuyers with down payments and closing costs.
Since 1990, FHLBank Atlanta has awarded over $1 billion through the Affordable Housing Program (AHP), providing funding for more than 167,000 rental and for-sale residential units for low- and moderate- income households.
FHLBank Atlanta's AHP is capitalized with 10 percent of its annual income.

WHAT WE DO

Connecting Investors with Homeowners and Communities

FHLBank Atlanta's primary function is to provide a readily available, competitively-priced source of funds (advances) to its members. Other products, including letters of credit and affordable housing grants, also support members’ funding needs and their ability to deliver financial services to their communities. By providing its members with such liquidity, the Bank fulfills its statutory mission to enhance the availability of residential mortgage and community investment credit.

FHLBANK ATLANTA PRODUCTS AND SERVICES

FHLBank Atlanta provides its members and housing associates with a reliable source of short- and long-term, attractively-priced funding (advances) to finance home mortgages, home equity loans, commercial real estate, small business loans, and other types of lending activity.

Advances (loans)

Help members meet community lending needs, manage daily liquidity needs, manage interest-rate risk, and support asset/liability management.
Are flexible and can be structured with fixed or variable interest rates and short- or long-term maturities.

Letters of Credit (LOCs)

Provide an efficient, low-cost way to secure improved credit terms with third parties.
Are used to collateralize public unit deposits (PUDs), facilitate residential housing finance, facilitate and enhance the issuance of credit and pricing terms for taxable bond issuances, facilitate affordable housing and community development lending, and meet critical business financing needs and those of customers at a low cost of capital.

Cash Management and Securities Safekeeping

In addition to advance products, the Bank offers daily investment accounts, wire transfer services, and securities safekeeping services to members.

Community Investment Products and Programs

Members have access to low- or no-cost funding for the development of residential rental or homeownership projects, and for the funding of home purchases and/or rehabilitation of homes.
Programs include the Community Investment Program (CIP), the Economic Development Program (EDP), and the Affordable Housing Program (AHP).
- The FHLBank Act requires each FHLBank to contribute 10 percent of its net income to their AHP.
Funding for CIP and EDP is through advances, while capitalization for the AHP is subject to the annual profitability of the Bank.

Affordable Housing Program General Fund - Rental and Ownership

The AHP General Fund helps members and their community partners develop affordable owner-occupied and rental housing for very low- to moderate-income families and individuals.
Affordable housing developers and other organizations partner with member institutions to seek competitive subsidy funding or low-cost loans.

Homeownership Set-aside Program

The AHP Homeownership Set-aside Program includes products designed to help eligible very low- to moderate-income
homebuyers purchase a home or rehabilitate their home.
Homeownership Set-aside products also help members achieve their business development and Community Reinvestment Act (CRA) compliance objectives.

Community Partners Product

• Provides up to $10,000 for home purchase assistance to current or retired law enforcement officers, educators, health care

workers, firefighters, other first responders, "essential workers," active-duty military personnel, and veterans or their

surviving spouses.

• Both first-time homebuyers and non-first-time homebuyers may be eligible.

Community Rebuild and Restore Product

• Provides up to $10,000 for the rehabilitation of an existing owner-occupied home located in “Major Disaster Declaration”

areas as designated by the Federal Emergency Management Agency (FEMA), including areas designated "Major Disaster"

as a result of the COVID-19 pandemic.

First-time Homebuyer Product

• Provides up to $7,500 to help first-time homebuyers cover closing costs and down payments.

• Since 1997, the First-time Homebuyer Product has helped more than 30,300 families purchase homes.

HOW FHLBANK ATLANTA MANAGES RISK

As a cooperative, the Bank is designed to meet eligible members’ funding needs in any economic cycle. Due to conservative credit underwriting and collateral valuation standards, FHLBank Atlanta has never suffered a credit loss on an advance or required taxpayer-funded assistance. The Bank has clear and consistent policies governing advances, and each member is held to the same uncompromising standards. These policies are well documented in the Member Products and Services Guide, which is available on the Bank’s corporate website, www.fhlbatl.com.

FHLBank Atlanta underwrites each member before granting it credit. In order to obtain credit, a member must purchase capital stock in the Bank equal to 3.75 percent of the amount of the advance, or 0.10 percent of any outstanding letter of credit. As a result of this requirement, the Bank’s capital grows as lending activity grows.

All members must pledge sufficient eligible collateral to secure 100 percent of their advances. Discounts are applied to pledged collateral based on current market value.

The Bank also regularly tests collateral pledged by members for policy compliance. Any loan or asset found to fail these tests is not eligible collateral and must be withdrawn from the pledged collateral pool and replaced with eligible collateral.

The Bank remains mindful of changing market conditions and regularly re-evaluates and refines the credit underwriting policies and collateral valuation methodologies. The Bank is vigilant in ensuring that its lending and investing activity is executed in a safe and sound manner, balancing the mission of providing liquidity to members with sound risk management practices.

REGULATORY OVERSIGHT

The Housing and Economic Recovery Act of 2008 (HERA) created an independent agency of the U.S. government,

the Federal Housing Finance Agency (FHFA), to regulate the FHLBanks, Fannie Mae, and Freddie Mac.

The FHFA is headed by an independent director. In addition to the Director, HERA provided for three Deputy Directors: (1) a Deputy Director of the Division of Enterprise Regulation, overseeing Fannie Mae and Freddie Mac; (2) a Deputy Director of the Division of Federal Home Loan Bank Regulation, overseeing the FHLBanks; and (3) a Deputy Director for Housing Mission and Goals, overseeing both “the housing mission and goals” of Fannie Mae and Freddie Mac and “the housing finance and community and economic development mission” of the FHLBanks.

HERA also established a four member oversight board – the Federal Housing Finance Oversight Board – consisting of the Director, who serves as chair; the Secretaries of Treasury and HUD; and the SEC Chairman. The Oversight Board advises the Director on overall strategies and policies for FHFA.