ATLANTA, Feb. 28 /PRNewswire/ -- The Federal Home Loan Bank of Atlanta
(FHLBank Atlanta) today announced financial results for the year ended
December 31, 2007, as well as dividend guidance for the first quarter of
2008.
2007 Operating Highlights
FHLBank Atlanta's net income for 2007 was $444.9 million, a $30.7
million or 7.41 percent increase from net income of $414.2 million for
2006. The increase in net income for 2007 compared to 2006 was due to an
increase in net interest income, prompted by greater demand for advances,
and other income growth from the interaction of interest rates on trading
securities and derivative and hedging activities.
"The Bank performed very well last year by executing its mission with
focus and vigor," Richard A. Dorfman, the Bank's President and Chief
Executive Officer stated. "The tremendous value of providing liquidity to
member financial institutions was evident in the steady growth of advances
during the disruption of global credit markets."
FHLBank Atlanta's 2007 performance resulted in an ROE of 6.47 percent,
compared to 6.59 percent for 2006. For the year ended December 31, 2007,
the Bank distributed $382.5 million of earnings to members as a return on
their capital investment in the Bank, representing an annual dividend rate
of 5.98 percent.
As of December 31, 2007, total assets were $189.7 billion, an increase
of $49.0 billion, or 34.8 percent, from December 31, 2006. The increase in
total assets was primarily a result of a $41.4 billion, or 40.8 percent,
increase in advances during the period. The significant increase in
advances during the period primarily resulted from increased liquidity
needs of the Bank's members in light of unanticipated disruptions in the
credit markets during mid and late 2007.
In 2007, the Bank also contributed $50.7 million to the Affordable
Housing Program (AHP), helping to build, renovate, or preserve more than
6,000 affordable housing units. This figure represents the highest amount
of funding and largest number of units awarded through AHP in a single year
in the Bank's history.
2007 Capital Stock and Retained Earnings
As of December 31, 2007, total capital was $8.0 billion, an increase of
$1.8 billion, or 29.9 percent, from December 31, 2006. The increase in
total capital was primarily a result of an increase in the activity-based
stock during the period that corresponds to the increase in advances. The
Bank increased its retained earnings during 2007 by $62.4 million to $468.8
million as of December 31, 2007.
First Quarter 2008 Dividend Guidance
Based upon currently available information, the Bank presently expects
to pay an annualized dividend in the range of 6.00 percent to 6.50 percent
for the quarter ending March 31, 2008.
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 dividend guidance
for the first quarter of 2008, 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 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, 2007, 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, cmcentee@fhlbatl.com
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