Federal Home Loan Bank of Atlanta Announces First Quarter 2018 Operating Highlights
Staff Report From Metro Atlanta CEO
Friday, April 27th, 2018
Federal Home Loan Bank of Atlanta released preliminary unaudited financial highlights for the quarter ended March 31, 2018. All numbers reported below for the first quarter of 2018 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 May 9, 2018.
The Bank reported net income of $114 million for the first quarter of 2018, an increase of $39 million from net income of $75 million for the first quarter of 2017. The increase in net income for the first quarter of 2018 was primarily attributable to an increase in interest rates. As of March 31, 2018, the Bank had total assets of $140.5 billion, a decrease of $6.1 billion, or 4.17 percent, from December 31, 2017. The Bank's advances were $91.7 billion as of March 31, 2018, a decrease of $10.7 billion, or 10.5 percent, from December 31, 2017. The decrease in advances was due to maturities that occurred near the end of the first quarter of 2018. The Bank's average advance balance for the first quarter of 2018 was $112.3 billion.
The Bank's retained earnings balance was $2.1 billion as of March 31, 2018, an increase of $49 million, or 2.46 percent, from December 31, 2017. Capital stock was $4.7 billion as of March 31, 2018, a decrease of $406 million, or 7.88 percent, from December 31, 2017.
The Bank's first quarter performance resulted in an annualized return on average equity (ROE) of 6.01 percent as compared to 4.29 percent for the first quarter of 2017. The ROE spread to average three-month LIBOR increased to 408 basis points for the first quarter of 2018, as compared to 322 basis points for the first quarter of 2017. As of March 31, 2018, the Bank was in compliance with its regulatory capital requirements.
| Federal Home Loan Bank of Atlanta Financial Highlights (Preliminary and unaudited) (Dollars in millions) |
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| Statements of Condition | As of March 31, 2018 | As of December 31, 2017 | ||||||||
| Investments | $ | 47,483 | $ | 40,378 | ||||||
| Advances | 91,733 | 102,440 | ||||||||
| Mortgage loans held for portfolio, net | 416 | 435 | ||||||||
| Total assets | 140,460 | 146,566 | ||||||||
| Consolidated obligations, net | 131,819 | 137,662 | ||||||||
| Total capital stock | 4,748 | 5,154 | ||||||||
| Retained earnings | 2,052 | 2,003 | ||||||||
| Accumulated other comprehensive income | 95 | 110 | ||||||||
| Total capital | 6,895 | 7,267 | ||||||||
| Capital-to-assets ratio (GAAP) | 4.91 | % | 4.96 | % | ||||||
| Capital-to-assets ratio (Regulatory) | 4.84 | % | 4.88 | % | ||||||
| Three Months Ended March 31, | ||||||||||
| Operating Results and Performance Ratios | 2018 | 2017 | ||||||||
| Net interest income (expense) | $ | 135 | $ | (202 | ) | |||||
| Standby letters of credit fees | 6 | 7 | ||||||||
| Other income | 21 | 312 | ||||||||
| Total noninterest expense | 35 | 34 | ||||||||
| Affordable Housing Program assessments | 13 | 8 | ||||||||
| Net income | 114 | 75 | ||||||||
| Return on average assets | 0.29 | % | 0.21 | % | ||||||
| Return on average equity | 6.01 | % | 4.29 | % | ||||||
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 First Quarter 2018 Form 10-Q expected to be filed on or about May 9, 2018 with the SEC.
