ATLANTA, Feb. 21 /PRNewswire/ -- The Federal Home Loan Bank of Atlanta
(the Bank) today announced financial results for the year ended December
31, 2006, as well as dividend guidance for the first quarter of 2007.
2006 Operating Highlights
The Bank had net income of $414 million for the year ended December 31,
2006, which represented an increase of 20.4 percent from net income of $344
million for the year ended December 31, 2005. The increase in net income
for 2006 compared to 2005 was due primarily to increases in interest rates
and the spread between interest sensitive assets and liabilities.
Mr. William H. Ott, the Bank's Interim President and Chief Executive
Officer stated, "The Bank achieved excellent results in 2006, while
providing competitive advance pricing and an attractive dividend to member
financial institutions. We are very pleased with the Bank's positive
financial performance during 2006, which we believe is a reflection of the
Bank's financial strength and business strategies."
The 2006 performance resulted in an annualized return on equity of 6.59
percent, compared to 5.83 percent for 2005. The Bank finished the year with
retained earnings of $406 million, a 24% increase over the Bank's $328
million of retained earnings at December 31, 2005.
As of December 31, 2006, the Bank had total assets of $140.8 billion,
representing a decrease of $2.5 billion, or 1.7 percent, from the Bank's
total assets of $143.2 billion at December 31, 2005. Advances, the largest
component of Bank assets, increased by $212 million, from $101.3 billion at
December 31, 2005 to $101.5 billion at December 31, 2006.
In 2006, the Bank awarded Affordable Housing Program (AHP) grants
totaling $44 million to help build or preserve more than 6,000 affordable
housing units, representing the highest level of grants and largest number
of units in the Bank's history. The total development cost of the awarded
projects was $619 million.
First Quarter 2007 Dividend Guidance
Based upon currently available information, the Bank presently expects
to pay an annualized dividend in the range of 5.60 percent to 5.90 percent
for the quarter ending March 31, 2007.
About the Federal Home Loan Bank of Atlanta
The Bank is a cooperative financial services organization that provides
funding, community development grants, and a host of other banking services
to more than 1,200 member financial institutions in Alabama, Florida,
Georgia, Maryland, North Carolina, South Carolina, Virginia, and the
District of Columbia. The Bank is one of 12 district banks in the Federal
Home Loan Bank System (the FHLB System), which since 1990 has contributed
more than $2 billion to affordable housing development in the United
States.
Some of the statements made in this announcement, including, without
limitation, those statements that relate to the Bank's 2007 financial
performance and the Bank's dividend guidance for the first quarter of 2007,
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: the fact that 2006 financial
performance is not indicative of financial performance or condition in any
future periods; the Bank's actual net income results, which drive the
determination of actual dividend payments; legislative and regulatory
actions or changes; future economic and market conditions; changes in
demand for advances or consolidated obligations of the Bank and/or the FHLB
System; changes in interest rates; 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 http://www.sec.gov.
You should not place undue reliance on forward-looking statements,
since the statements speak only as of the date that they are made. 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. This announcement should be
read in conjunction with the Bank's financial statements and the footnotes
thereto filed with the SEC including, without limitation, the financial
statements and footnotes set forth in the Bank's Annual Report on Form 10-K
for the year ended December 31, 2006, when filed with the SEC.
SOURCE Federal Home Loan Bank of Atlanta
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Related links:
http://www.fhlbatl.com
http://www.prnewswire.com/comp/149931.html/
CONTACT:
Christopher McEntee of Federal Home Loan Bank
of Atlanta, +1-404-888-8158, or cmcentee@fhlbatl.com
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