Federal Home Loan Bank of Atlanta Announces Third Quarter 2024 Operating Highlights and Declares Dividend
ATLANTA, Oct. 24, 2024 (GLOBE NEWSWIRE) -- Federal Home Loan Bank of Atlanta (the Bank) today released preliminary unaudited financial highlights for the quarter ended September 30, 2024. All numbers reported below for the third quarter of 2024 are approximate until the Bank announces unaudited financial results in its Form 10-Q, which is expected to be filed with the Securities and Exchange Commission (SEC) on or about November 7, 2024.
Operating Results for the Third Quarter of 2024
Net interest income for the third quarter of 2024 was $221 million, a decrease of $19 million, compared to net interest income of $240 million for the same period in 2023. Net income for the third quarter of 2024 was $150 million, a decrease of $28 million, compared to net income of $178 million for the same period in 2023. The decrease in net income was primarily due to a decrease in average advance balances. Net income for the current period was also impacted by $18 million in voluntary housing contributions during the third quarter of 2024.
For the three months ended September 30, 2024, average advance balances were $89.8 billion, compared to average advance balances of $108.5 billion for the same period in 2023.
The net yield on interest-earning assets for the third quarter of 2024 was 61 basis points, relatively stable, compared to 59 basis points for the same period in 2023. Many of the Bank's assets and liabilities are indexed to the Secured Overnight Financing Rate (SOFR). Average daily SOFR during the third quarter of 2024 was 5.28 percent compared to 5.24 percent for the same period in 2023.
The Bank's third quarter 2024 performance resulted in an annualized return on average equity (ROE) of 7.50 percent as compared to 8.76 percent for the same period in 2023. The lower ROE was primarily driven by the decreased net income in 2024.
Financial Condition Highlights
Total assets were $135.8 billion as of September 30, 2024, a decrease of $16.6 billion from December 31, 2023.
Advances outstanding were $86.5 billion as of September 30, 2024, a decrease of $10.1 billion from December 31, 2023.
Total capital was $7.9 billion as of September 30, 2024, a decrease of $256 million from December 31, 2023. Retained earnings was $2.7 billion as of September 30, 2024, an increase of $184 million from December 31, 2023.
As of September 30, 2024, the Bank was in compliance with all applicable regulatory capital and liquidity requirements.
Reliable Source of Liquidity
During the first nine months of 2024, the Bank originated a total of $233.4 billion of advances, thereby providing significant liquidity to its members to support lending and other activities in their communities. The Bank is proud to continue to execute on its mission to be a reliable source of liquidity and funding for its members, while remaining adequately capitalized.
Commitment to Affordable Housing and Community Development
The Bank commits 10 percent of its income before assessments to support the affordable housing and community development needs of communities served by its members as required by law, which amounted to $72 million for the 2023 statutory Affordable Housing Program (AHP) assessment available for funding in 2024. As of September 30, 2024, the Bank has accrued $58 million to its AHP pool of funds that will be available to the Bank's members and their communities in 2025 for funding of eligible projects.
The Bank has committed to voluntarily contribute, at a minimum, an additional 50 percent of its prior year statutory AHP assessment to affordable housing. During 2024, the Bank authorized $49 million in voluntary housing contributions consisting of $23 million in voluntary AHP non-statutory contributions and $26 million in voluntary non-AHP contributions. These amounts are anticipated to be expensed during 2024. Together with the $72 million from the 2023 statutory AHP assessment, this will result in a total commitment by the Bank to support affordable housing and community development needs of over $120 million for 2024.
Since the inception of its AHP in 1990, the Bank has awarded more than $1.2 billion in AHP funds, assisting more than 177,000 households.
Dividends
The board of directors of the Bank approved a third quarter 2024 cash dividend at an annualized rate of 7.35 percent.
"We are pleased to declare a strong third quarter dividend and return value to our members," said FHLBank Atlanta Chair of the Board, Thornwell Dunlap. "This is a testament to FHLBank Atlanta's commitment to serving as a reliable source of liquidity for our members to support their business objectives and communities."
The dividend payout will be calculated based on members' capital stock held during the third quarter of 2024 and will be credited to members' daily investment accounts at the close of business on November 6, 2024.
Federal Home Loan Bank of AtlantaFinancial Highlights(Preliminary and unaudited)(Dollars in millions)
Statements of Condition
As of September 30, 2024
As of December 31, 2023
Advances
$
86,536
$
96,608
Investments
47,882
54,207
Mortgage loans held for portfolio, net
93
103
Total assets
135,793
152,370
Total consolidated obligations, net
124,414
141,572
Total capital stock
5,159
