Fri, May 9, 5:20 PM (14 days ago)
**Federal Home Loan Bank of Atlanta (FHLB Atlanta) - Q1 2025 Financial Summary** **Ticker:** FHLBA **Q1 2025 Financial Health and Performance:** - **Revenue:** $1,715 million (down from $2,192 million in Q1 2024). - **Profit Margins:** Net income decreased to $143 million from $194 million in Q1 2024. - **Cash Flow:** Net cash used in operating activities was $(326) million, compared to $107 million in Q1 2024. - **Earnings Changes:** Net interest income decreased by $47 million (18.66%) due to lower interest rates and decreased average advance balances. - **Quarterly Performance:** The decrease in net income was primarily due to the decrease in net interest income. **Trends and Uncertainties:** - **Interest Rates:** The decrease in net interest income was primarily due to a decrease in interest rates which impacted income from interest-earning assets more than the expense from interest-bearing liabilities. - **Advances:** Average advance balances were $97.1 billion for Q1 2025, compared to $103.0 billion for the same period in 2024. - **Liquidity:** The Bank's principal source of liquidity is consolidated obligation debt instruments. The Bank is focused on maintaining an adequate liquidity balance and a funding balance between its financial assets and financial liabilities. - **Regulatory Compliance:** The Bank was in compliance with regulatory capital rules and requirements as of March 31, 2025. **Future Operations Impact:** - **Investments:** The Bank's investments in mortgage-backed securities (MBS) exceeded the 300% regulatory limit as of March 31, 2025, precluding additional MBS purchases until the ratio declines. - **Derivatives:** The Bank uses derivatives to manage interest-rate risk, with a focus on converting fixed-rate advances and consolidated obligation bonds to variable rates, primarily based on SOFR. - **Risk Management:** The Bank's risk management framework includes credit risk, market risk, and liquidity risk management strategies to ensure safe and sound operations. **Conclusion:** FHLB Atlanta faced challenges in Q1 2025 due to lower interest rates and decreased advance balances, leading to a decline in net interest income and net income. The Bank remains focused on liquidity management, regulatory compliance, and risk management to navigate the current economic environment and ensure future operational stability.