ATLANTA, Feb. 22, 2024 (GLOBE NEWSWIRE) — Federal Home Loan Bank of Atlanta (the Bank) today released preliminary unaudited financial highlights for the quarter and year ended December 31, 2023. All numbers reported below for 2023 are approximate until the Bank announces audited financial results in its Form 10-K, which is expected to be filed with the Securities and Exchange Commission (SEC) on or about March 8, 2024.
Fourth Quarter 2023 Operating Results
Net income for the fourth quarter of 2023 was $174 million, an increase of $100 million, compared to net income of $74 million for the same period in 2022. The increase in net income was primarily due to a $134 million increase in net interest income.
The increases in net interest income and net income were primarily due to an increase in interest rates which impacted income from interest-earning assets more than the expense from interest-bearing liabilities. The net yield on interest-earnings assets for the fourth quarter of 2023 was 58 basis points, an increase of 30 basis points, compared to 28 basis points for the same period in 2022. Many of the Bank’s assets and liabilities are indexed to the Secured Overnight Financing Rate (SOFR). Average daily SOFR during the fourth quarter of 2023 was 5.32 percent compared to 3.62 percent for the same period in 2022.
The Bank’s fourth quarter 2023 performance resulted in an annualized return on average equity (ROE) of 7.83 percent as compared to 4.20 percent for the same period in 2022. The increase in ROE was primarily due to the increase in net income during the quarter.
Annual 2023 Operating Results
Net income for the year ended December 31, 2023 was $649 million, an increase of $465 million, compared to net income of $184 million for the same period in 2022. The increase in net income was primarily due to a $562 million increase in net interest income.
The increases in net interest income and net income were primarily due to an increase in interest rates which impacted income from interest-earning assets more than the expense from interest-bearing liabilities, as well as an increase in average advance balances. The positive impact to net interest income and net income related to the higher average advance balances was offset by a corresponding increase in average consolidated obligation balances. The net yield on interest-earnings assets for the year ended December 31, 2023 was 50 basis points, an increase of 22 basis points, compared to 28 basis points for the same period in 2022. Many of the Bank’s assets and liabilities are indexed to SOFR. The year-to-date average daily SOFR as of December 31, 2023 was 5.01 percent compared to 1.64 percent for the same period in 2022. The average advance balances were $125.4 billion for the year ended December 31, 2023, compared to $75.8 billion for 2022. The average consolidated obligation balances were $166.3 billion for the year ended December 31, 2023, compared to $106.5 billion for 2022.
The Bank’s 2023 performance resulted in an annualized return on average equity (ROE) of 7.43 percent as compared to 3.18 percent for the same period in 2022. The increase in ROE was primarily due to the increase in net income during the year.
Financial Condition Highlights
Total assets were $152.4 billion as of December 31, 2023, an increase of $748 million from December 31, 2022.
Advances outstanding were $96.6 billion as of December 31, 2023, a decrease of $13.0 billion from December 31, 2022, primarily due to member demand moderating during the later part of the year.
Total capital was $8.1 billion as of December 31, 2023, an increase of $470 million from December 31, 2022. The increase in capital stock was primarily due to increases in the membership stock requirement which became effective August 25, 2023. Retained earnings increased to $2.5 billion as of December 31, 2023, compared to $2.3 billion as of December 31, 2022.
As of December 31, 2023, the Bank was in compliance with all applicable regulatory capital and liquidity requirements.
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. For the year ended December 31, 2023, the Bank has accrued $72 million to its Affordable Housing Program (AHP) pool of funds that will be available to the Bank’s members and their communities in 2024.
For the year ended December 31, 2023, the Bank made a total of $19 million of additional voluntary affordable housing and community development contributions available in 2023. This included $11 million in additional voluntary housing contributions to the Bank’s AHP Homeownership Set-aside Program. This program assists eligible borrowers in purchasing or rehabilitating homes through the Bank’s member financial institutions. The remaining $8 million supported the Bank’s Multifamily Housing Bridge Fund to close funding gaps caused by rising construction costs and higher interest rates in affordable housing projects in the Bank’s district.
In 2024, the Bank has voluntarily committed an additional five percent of its 2023 income before assessments, equal to $36 million, to further support the affordable housing and community development needs of its communities. This will result in a total commitment by the Bank to support affordable housing and community development needs of over $100 million in 2024.
Since the inception of its AHP in 1990, the Bank has awarded more than $1.1 billion in AHP funds, assisting more than 174,000 households.
Reliable Source of Liquidity
For 2023, the Bank originated a total of $470.0 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.
Federal Home Loan Bank of Atlanta
Financial Highlights
(Preliminary and unaudited)
(Dollars in millions)
As of December 31,
Statements of Condition
2023
2022
Advances
$
96,608
$
109,595
Investments
54,207
40,902
Mortgage loans held for portfolio, net
103
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