ATLANTA, July 29, 2015 (GLOBE NEWSWIRE) -- Federal Home Loan Bank of Atlanta (the Bank) today released unaudited financial highlights for the second quarter of 2015. All numbers reported below for the second quarter of 2015 are approximate until the Bank announces 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 7, 2015.
The Bank reported net income of $87 million for the second quarter of 2015, an increase of $25 million from net income of $62 million for the second quarter of 2014. During the second quarter of 2015, net interest income decreased compared to the same period in 2014, primarily due to $149 million of accelerated amortization related to restructured advances that were prepaid prior to their maturity. This accelerated amortization was offset by net gains on derivatives and hedging activities.
As of June 30, 2015, the Bank had total assets of $139.7 billion, an increase of $1.4 billion, or 0.99 percent, from December 31, 2014. The Bank's advances were $102.2 billion as of June 30, 2015, an increase of $2.6 billion, or 2.57 percent, from December 31, 2014. The Bank's retained earnings balance was $1.8 billion as of June 30, 2015, an increase of $67 million, or 3.89 percent, from December 31, 2014. Capital stock was $5.1 billion as of June 30, 2015, a decrease of $98 million, or 1.89 percent, from December 31, 2014.
The Bank's second quarter 2015 performance resulted in an annualized return on equity (ROE) of 5.54 percent as compared to 3.81 percent for the second quarter of 2014. The ROE spread to average three-month LIBOR increased to 526 basis points for the second quarter of 2015, compared to 358 basis points for the second quarter of 2014. The Bank continues to meet its regulatory capital requirements.
| Federal Home Loan Bank of Atlanta | ||
| Financial Highlights | ||
| (Unaudited) | ||
| (Dollars in millions) | ||
| Statements of Condition | As of June 30, 2015 | As of December 31, 2014 |
| Investments | $ 35,806 | $ 36,502 |
| Advances | 102,208 | 99,644 |
| Mortgage loans held for portfolio, net | 662 | 746 |
| Total assets | 139,716 | 138,344 |
| Consolidated obligations, net | 130,573 | 129,250 |
| Total capital stock | 5,052 | 5,150 |
| Retained earnings | 1,813 | 1,746 |
| Accumulated other comprehensive income | 77 | 95 |
| Total capital | 6,942 | 6,991 |
| Capital-to-assets ratio (GAAP) | 4.97% | 5.05% |
| Capital-to-assets ratio (Regulatory) | 4.93% | 5.00% |
| Three Months Ended June 30, | Six Months Ended June 30, | |||
| Operating Results and Performance Ratios | 2015 | 2014 | 2015 | 2014 |
| Net interest (expense) income | $ (48) | $ 92 | $ 56 | $ 182 |
| Provision (reversal) of provision for credit losses | — | 2 | (1) | (2) |
| Net impairment losses recognized in earnings | (3) | — | (4) | (1) |
| Letters of credit fees | 7 | 6 | 14 | 13 |
| Other income | 172 | 4 | 186 | 21 |
| Total noninterest expense | 31 | 32 | 65 | 63 |
| Affordable Housing Program assessments | 10 | 6 | 19 | 15 |
| Net income | 87 | 62 | 169 | 139 |
| Return on average assets | 0.27% | 0.19% | 0.26% | 0.22% |
| Return on average equity | 5.54% | 3.81% | 5.26% | 4.28% |
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 7, 2015, 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 headquartered 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, which since 1990 has contributed more than $4.4 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 to 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, 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.