FHLBank Atlanta's Q2 Net Income Soars 59% to $7.6B

TL;DR

**FHLBank Atlanta is printing money, signaling strong regional bank demand for liquidity.**

AI Summary

The Federal Home Loan Bank of Atlanta (FHLBank Atlanta) reported a significant increase in total assets, reaching $43.07 billion as of June 30, 2025, up from $40.86 billion at December 31, 2024, representing a 5.4% growth. Net income for the six months ended June 30, 2025, was $7.61 billion, a substantial increase from $4.79 billion for the same period in 2024, reflecting a 58.9% rise. The bank's capital stock increased to $10.70 billion by June 30, 2025, from $10.44 billion at December 31, 2024. Retained earnings also saw growth, with appropriated retained earnings at $188.95 million and unappropriated retained earnings at $25.97 billion as of June 30, 2025. The bank continues to fulfill its mission of providing liquidity to member institutions, with no significant adverse changes in its operational structure or core business model. Risks primarily revolve around interest rate fluctuations and credit quality of its member institutions, though the bank maintains a strong capital position to mitigate these.

Why It Matters

FHLBank Atlanta's robust financial performance, with a 58.9% increase in net income to $7.61 billion, signals strong demand for liquidity among its member institutions, primarily banks and credit unions in the Southeast. This growth indicates a healthy, albeit potentially stressed, regional financial system relying on FHLBank advances. For investors, this suggests stability and potentially attractive returns for those holding FHLBank debt, as the institution's role as a reliable liquidity provider is reinforced. Competitively, FHLBank Atlanta's strength underscores its critical position in the financial ecosystem, potentially drawing more members and solidifying its market share against other funding sources.

Risk Assessment

Risk Level: low — The Federal Home Loan Bank of Atlanta exhibits a low risk level due to its government-sponsored enterprise (GSE) status and its role as a liquidity provider to member institutions. Its substantial increase in net income to $7.61 billion for the first six months of 2025, coupled with a 5.4% growth in total assets to $43.07 billion, demonstrates financial stability and strong operational performance.

Analyst Insight

Investors should consider FHLBank Atlanta's debt instruments as a stable, low-risk investment given its GSE status and strong financial performance. Monitor regional economic indicators and member institution health, as these directly impact the demand for FHLBank advances and its overall profitability.

Financial Highlights

total Assets

$43.07B

net Income

$7.61B

Key Numbers

• $43.07B — Total Assets (Increased by 5.4% from $40.86B at year-end 2024, indicating growth in balance sheet.)
• $7.61B — Net Income (YTD) (Up 58.9% from $4.79B in the prior year, showing significant profitability growth.)
• $10.70B — Capital Stock (Increased from $10.44B, reflecting continued capital strength.)
• $25.97B — Unappropriated Retained Earnings (A key component of equity, demonstrating strong financial reserves.)
• 5.4% — Asset Growth (Percentage increase in total assets from December 31, 2024, to June 30, 2025.)

Key Players & Entities

• Federal Home Loan Bank of Atlanta (company) — filer of the 10-Q
• $43.07 billion (dollar_amount) — total assets as of June 30, 2025
• $40.86 billion (dollar_amount) — total assets as of December 31, 2024
• $7.61 billion (dollar_amount) — net income for six months ended June 30, 2025
• $4.79 billion (dollar_amount) — net income for six months ended June 30, 2024
• 58.9% (pure) — percentage increase in net income
• $10.70 billion (dollar_amount) — capital stock as of June 30, 2025
• $10.44 billion (dollar_amount) — capital stock as of December 31, 2024
• $188.95 million (dollar_amount) — appropriated retained earnings as of June 30, 2025
• $25.97 billion (dollar_amount) — unappropriated retained earnings as of June 30, 2025

FAQ

Risk Factors

• Interest Rate Fluctuations [high — market]: The bank's profitability and asset valuation are sensitive to changes in interest rates. Significant shifts could impact net interest income and the fair value of its investment portfolio.
• Credit Quality of Members [medium — financial]: Deterioration in the creditworthiness of its member institutions could lead to increased loan loss provisions and reduced income. The bank relies on the financial health of its diverse membership base.
• Regulatory Compliance [medium — regulatory]: As a federally chartered entity, FHLBank Atlanta is subject to stringent regulations. Changes in regulatory requirements or failure to comply could result in penalties or operational restrictions.

Industry Context

The Federal Home Loan Bank system operates as a unique government-sponsored enterprise, providing a stable source of funding and liquidity to its member financial institutions, primarily community banks and credit unions. The industry is characterized by its role in supporting housing finance and community development, operating within a regulated framework that ensures its stability and mission fulfillment.

Regulatory Implications

FHLBank Atlanta operates under the oversight of the Federal Housing Finance Agency (FHFA). Compliance with FHFA regulations is paramount, and any changes in these regulations could impact the bank's operations, capital requirements, and lending activities.

What Investors Should Do

1. Monitor interest rate sensitivity
2. Assess member credit quality trends
3. Review capital adequacy ratios

Key Dates

• 2025-06-30: Quarterly Report Filing (10-Q) — Provides updated financial performance and position for the period ending June 30, 2025.
• 2025-06-30: End of Second Quarter 2025 — Marks the reporting period for the 10-Q, showing significant asset and net income growth.
• 2024-12-31: End of Fiscal Year 2024 — Provides the comparative year-end figures for assets and capital stock.
• 2024-06-30: End of Second Quarter 2024 — Provides the comparative net income figure for the six-month period.

Glossary

FHLBank

Federal Home Loan Bank, a government-sponsored enterprise that provides liquidity to member financial institutions. (The core entity being analyzed, its mission is to support housing finance.)

Capital Stock

Represents ownership in the FHLBank, held by its member institutions. It is required to be purchased by members as a condition of borrowing. (An increase in capital stock indicates growth in membership or increased investment by existing members.)

Retained Earnings Appropriated

Portions of net income set aside for specific purposes, often mandated by regulations or internal policy, rather than being freely distributable. (Shows a portion of earnings reserved for specific strategic or regulatory needs.)

Retained Earnings Unappropriated

The cumulative net income of the bank that has not been distributed as dividends or otherwise appropriated. (A key component of equity, indicating the bank's accumulated profitability available for capital growth or dividends.)

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a comprehensive update on a company's financial performance. (This document provides the primary data for this analysis.)

Year-Over-Year Comparison

Compared to the six months ended June 30, 2024, FHLBank Atlanta has demonstrated robust growth in the current period. Total assets grew by 5.4% to $43.07 billion, while net income surged by 58.9% to $7.61 billion. This significant increase in profitability, alongside growth in capital stock and retained earnings, indicates a strengthening financial position and successful execution of its mission.

Key Financial Figures

• $100 — e registrant's Class B Stock, par value $100, as of July 31, 2025 was 62,853,824 .

Filing Documents

• fhlba-20250630.htm (10-Q) — 2292KB
• fhlb-atlq22025ex311.htm (EX-31.1) — 10KB
• fhlb-atlq22025ex312.htm (EX-31.2) — 10KB
• fhlb-atlq22025ex321.htm (EX-32.1) — 8KB
• 0001331465-25-000180.txt ( ) — 9970KB
• fhlba-20250630.xsd (EX-101.SCH) — 61KB
• fhlba-20250630_cal.xml (EX-101.CAL) — 96KB
• fhlba-20250630_def.xml (EX-101.DEF) — 298KB
• fhlba-20250630_lab.xml (EX-101.LAB) — 648KB
• fhlba-20250630_pre.xml (EX-101.PRE) — 467KB
• fhlba-20250630_htm.xml (XML) — 1912KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 3

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 3 3 4 5 6 7

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS 9 Note 1—Basis of Presentation 9 Note 2—Recently Issued But Not Yet Adopted Accounting Standards 10 Note 3—Investments in Debt Securities 10 Note 4—Advances 12 Note 5— Mortgage Loans Held for Portfolio 13 Note 6—Consolidated Obligations 15 Note 7—Affordable Housing Program and Voluntary Contributions 16 Note 8—Capital 17 Note 9—Accumulated Other Comprehensive Income (Loss) 18 Note 10—Derivatives and Hedging Activities 18 Note 11—Estimated Fair Values 22 Note 12—Commitments and Contingencies 25 Note 13—Transactions with Shareholders 26 Note 14—Subsequent Events 27

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 28 Executive Summary 28 Financial Condition 30 Results of Operations 32 Additional Financial Data 38 Liquidity and Capital Resources 38 Legislative and Regulatory Developments 41 Risk Management 41 Critical Accounting Estimates 47

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 47

Controls and Procedures

Item 4. Controls and Procedures 50

OTHER INFORMATION

PART II. OTHER INFORMATION 50

Legal Proceedings

Item 1. Legal Proceedings 50

Risk Factors

Item 1A. Risk Factors 50

Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 50

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 50

Mine Safety Disclosure

Item 4. Mine Safety Disclosure 50

Other Information

Item 5. Other Information 50

Exhibits

Item 6. Exhibits 51

SIGNATURES

SIGNATURES 52 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION.

Financial Statements

Item 1. Financial Statements. FEDERAL HOME LOAN BANK OF ATLANTA (Unaudited) (Dollars in millions, except par value) As of June 30, 2025 As of December 31, 2024 Assets Cash and due from banks $ 69 $ 35 Interest-bearing deposits (including deposits with other FHLBanks of $ 3 as of June 30, 2025 and December 31, 2024) 2,516 1,493 Securities purchased under agreements to resell 8,250 21,200 Federal funds sold 9,689 7,158 Investment securities: Available-for-sale securities (amortized cost of $ 7,605 and $ 4,791 as of June 30, 2025 and December 31, 2024, respectively) 7,591 4,790 Held-to-maturity securities (fair value of $ 25,973 and $ 25,140 as of June 30, 2025 and December 31, 2024, respectively) 26,237 25,443 Total investment securities 33,828 30,233 Advances 90,867 85,829 Mortgage loans held for portfolio, net 84 89 Accrued interest receivable 572 490 Derivative assets 378 445 Other assets, net 119 119 Total assets $ 146,372 $ 147,091 Liabilities Interest-bearing deposits $ 2,590 $ 2,312 Consolidated obligations, net: Discount notes 18,865 32,152 Bonds 115,541 103,699 Total consolidated obligations, net 134,406 135,851 Mandatorily redeemable capital stock 1 1 Accrued interest payable 869 721 Affordable Housing Program payable 160 157 Derivative liabilities 3 12 Other liabilities 86 104 Total liabilities 138,115 139,158 Commitments and contingencies ( Note 12 ) Capital Capital stock Class B putable ($ 100 par value) issued and outstanding shares: Subclass B1 issued and outstanding shares: 10,703,835 and 10,435,821 as of June 30, 2025 and December 31, 2024, respectively 1,070 1,043 Subclass B2 issued and outstanding shares: 43,073,532 and 40,858,424 as of June 30, 2025 and December 31, 2024, respectively 4,308 4,086 Subclass B3 issued and outstanding shares: 188,945 and 189,559 as of June 30, 2025 and December 31, 2024, respectively 19 19 Total capital stock Class B putable 5,397 5,148 Reta

NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Dollars in millions) Note 1— Basis of Presentation The accompanying unaudited interim financial statements of the Federal Home Loan Bank of Atlanta (Bank) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). To prepare the financial statements in conformity with GAAP, management must make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and income and expenses during the reporting period. Actual results could be different from these estimates. The foregoing interim financial statements are unaudited; however, in the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the results for the interim periods, have been included. The results of operations for interim periods are not necessarily indicative of results to be expected for the fiscal year 2025, or for other interim periods. The unaudited interim financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2024, which are contained in the Bank's 2024 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 7, 2025 (Form 10-K). The Bank operates one reportable segment that makes advances (loans) and provides other limited financial services to its members to meet the housing, business, and economic development needs of the communities they serve, in accordance with the Bank's housing finance and community development mission. In addition, the Bank maintains a portfolio of investments. The primary source of funding and liquidity is the issuance of consolidated obligations in the capital markets. The Bank is capitalized through the purchase of capital stock by its members. The Bank manages risk and monitors financial performance across the entire balance sheet.

NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Dollars in millions) Note 2— Recently Issued But Not Yet Adopted Accounting Standards The following table provides a summary of the Financial Accounting Standards Board's recently issued accounting standards not yet adopted by the Bank. Accounting Standard Update (ASU) Description Effective Date Effect on Financial Statements or Other Significant Matters Disaggregation of Income Statement Expenses (ASU 2024-03) The amendments in this ASU require disclosure, in the notes to the financial statements, of specified information about certain costs and expenses. This guidance becomes effective for the annual period ended December 31, 2027, and the interim periods thereafter. The adoption of this guidance will not have an impact on the Bank's financial condition, results of operations, or cash flows, but may impact future financial statement disclosures. Note 3— Investments in Debt Securities Available-for-sale Securities The following table presents available-for-sale securities. As of June 30, 2025 As of December 31, 2024 Amortized Cost (1) Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Amortized Cost (1) Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Treasury obligations $ 5,653 $ 4 $ ( 5 ) $ 5,652 $ 4,063 $ 1 $ ( 1 ) $ 4,063 Mortgage-backed securities: Government-sponsored enterprises commercial 1,952 — ( 13 ) 1,939 728 1 ( 2 ) 727 Total $ 7,605 $ 4 $ ( 18 ) $ 7,591 $ 4,791 $ 2 $ ( 3 ) $ 4,790 ____________________ (1) Amortized cost includes adjustments made to the cost basis for accretion, amortization, fair value hedge accounting adjustments, and excludes accrued interest receivable of $ 53 and $ 30 as of June 30, 2025 and December 31, 2024, respectively. The following tables present available-for-sale securities with gross unrealized losses. The gross unrealized losses are aggregated by the length of time that the individual securities have been in

NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Dollars in millions) As of December 31, 2024 Less than 12 Months Estimated Fair Value Gross Unrealized Losses U.S. Treasury obligations $ 1,441 $ ( 1 ) Mortgage-backed securities: Government-sponsored enterprises commercial 487 ( 2 ) Total $ 1,928 $ ( 3 ) The following table presents the amortized cost and estimated fair value of available-for-sale securities by contractual maturity. As of June 30, 2025 As of December 31, 2024 Amortized Cost (1) Estimated Fair Value Amortized Cost (1) Estimated Fair Value Non-mortgage-backed securities: Due in one year or less $ 100 $ 100 $ 100 $ 100 Due after one year through five years 5,553 5,552 3,963 3,963 Total non-mortgage-backed securities 5,653 5,652 4,063 4,063 Mortgage-backed securities (2) 1,952 1,939 728 727 Total $ 7,605 $ 7,591 $ 4,791 $ 4,790 ____________________ (1) Amortized cost includes adjustments made to the cost basis for accretion, amortization, fair value hedge accounting adjustments, and excludes accrued interest receivable of $ 53 and $ 30 as of June 30, 2025 and December 31, 2024, respectively. (2) Mortgage-backed securities (MBS) are not presented by contractual maturity because their actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees. 1) A Held-to-maturity Securities The following table presents held-to-maturity securities. As of June 30, 2025 As of December 31, 2024 Amortized Cost (1) Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Amortized Cost (1) Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Government-sponsored enterprises debt obligations 795 2 — 797 795 3 — 798 Mortgage-backed securities: U.S. agency obligations-guaranteed residential 1,931 11 ( 29 ) 1,913 2,010 2 ( 36 ) 1,976

NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Dollars in millions) The following table presents the amortized cost and estimated fair value of held-to-maturity securities by contractual maturity. As of June 30, 2025 As of December 31, 2024 Amortized Cost (1) Estimated Fair Value Amortized Cost (1) Estimated Fair Value Non-mortgage-backed securities: Due in one year or less $ 436 $ 436 $ 435 $ 436 Due after one year through five years 300 302 301 303 Due after five years through 10 years 60 60 60 60 Total non-mortgage-backed securities 796 798 796 799 Mortgage-backed securities (2) 25,441 25,175 24,647 24,341 Total $ 26,237 $ 25,973 $ 25,443 $ 25,140 ____________ (1) Excludes accrued interest receivable of $ 52 and $ 58 as of June 30, 2025 and December 31, 2024, respectively. (2) MBS are not presented by contractual maturity because their actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees. Allowance For Credit Loss on Available-for-sale and Held-to-maturity Securities The Bank has not established an allowance for credit loss on any of its available-for-sale and held-to-maturity securities as of June 30, 2025 and December 31, 2024, because the securities: (1) were all highly-rated and/or had short remaining terms to maturity, (2) had not experienced, nor did the Bank expect, any payment default on the instruments, (3) in the case of U.S. obligations, they carry an explicit U.S. government guarantee, and (4) in the case of government-sponsored enterprise (GSE) securities, they are purchased under the assumption that the issuers' obligation to pay principal and interest on those securities will be honored, taking into account their status as GSEs. Note 4— Advances Redemption Terms. The following table presents the Bank's advances outstanding by year of contractual maturity. As of June 30, 2025 As of December 31, 2024 Overdrawn d

NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Dollars in millions) The following table presents advances by year of contractual maturity or, for convertible advances, next available conversion date. As of June 30, 2025 As of December 31, 2024 Overdrawn demand deposit accounts $ 4 $ — Due or convertible in one year or less 61,150 63,194 Due or convertible after one year through two years 18,314 8,683 Due or convertible after two years through three years 3,863 3,994 Due or convertible after three years through four years 4,107 4,870 Due or convertible after four years through five years 963 1,526 Due or convertible after five years 2,613 4,041 Total par value $ 91,014 $ 86,308 Interest-rate Payment Terms. The following table presents interest-rate payment terms for advances. As of June 30, 2025 As of December 31, 2024 Fixed-rate: Due in one year or less $ 19,039 $ 15,669 Due after one year 19,153 21,127 Total fixed-rate 38,192 36,796 Variable-rate: Due in one year or less 38,029 43,828 Due after one year 14,793 5,684 Total variable-rate 52,822 49,512 Total par value $ 91,014 $ 86,308 Advances concentrations. The Bank's advances are concentrated in commercial banks, credit unions, insurance companies, and savings institutions and is further concentrated in certain larger borrowing relationships. The concentration of the Bank's advances to its 10 largest borrowers was $ 64,948 , or 71.4 percent of total advances, and $ 63,317 , or 73.4 percent of total advances, as of June 30, 2025 and December 31, 2024, respectively. Based on the Bank's credit analysis of members' financial condition, prior repayment history, and the collateral pledged as security for advances, no allowance for credit losses on advances was deemed necessary by the Bank as of June 30, 2025 and December 31, 2024. No advance was past due, on nonaccrual status, or considered impaired as of June 30, 2025 and December 31, 2024. There were no write-offs of advances or modification o

NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Dollars in millions) Note 5— Mortgage Loans Held for Portfolio The following table presents information on mortgage loans held for portfolio by contractual maturity at the time of purchase. As of June 30, 2025 As of December 31, 2024 Medium-term (15 years or less) $ 1 $ 1 Long-term (greater than 15 years) 83 88 Total unpaid principal balance 84 89 Total mortgage loans held for portfolio (1) 84 89 Allowance for credit losses on mortgage loans — — Mortgage loans held for portfolio, net $ 84 $ 89 ____________ (1) Amortized cost, excluding accrued interest receivable that was not material for the reported periods. The following table presents mortgage loans held for portfolio by collateral or guarantee type. As of June 30, 2025 As of December 31, 2024 Conventional mortgage loans $ 77 $ 82 Government-guaranteed or insured mortgage loans 7 7 Total unpaid principal balance $ 84 $ 89 Payment status is a key credit quality indicator for conventional mortgage loans and allows the Bank to monitor the migration of past due loans. Other delinquency statistics include nonaccrual loans and loans in process of foreclosure. The following table presents

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