FHLBA's Q3 Net Income Rises, But 9-Month Profit Dips Amid Asset Growth

TL;DR

**FHLBA's Q3 net income uptick is a mirage; the year-to-date profit slide and declining net interest income signal underlying headwinds for this critical liquidity provider.**

AI Summary

The Federal Home Loan Bank of Atlanta (FHLBA) reported a net income of $155 million for the three months ended September 30, 2025, a 3.3% increase from $150 million in the same period of 2024. For the nine months ended September 30, 2025, net income decreased by 15.7% to $439 million, down from $521 million in the prior year. Total assets grew by 4.6% to $153,864 million as of September 30, 2025, from $147,091 million at December 31, 2024, primarily driven by a significant increase in advances to members, which rose by 9.7% to $94,167 million. Interest income declined across most categories, with total interest income falling by 7.4% to $1,865 million for the quarter and 16.3% to $5,402 million for the nine-month period. However, interest expense also decreased, leading to a net interest income of $212 million for the quarter, a slight decrease from $221 million. The bank's capital increased by 7.0% to $8,489 million from $7,933 million at year-end 2024, reflecting increased capital stock and retained earnings. Risks include market interest rate fluctuations impacting investment securities and consolidated obligations, as well as credit risk on advances to members, though no allowance for credit losses was recorded for interest-bearing deposits or securities purchased under agreements to resell.

Why It Matters

FHLBA's performance is crucial for its member institutions, which rely on its advances for liquidity and housing finance. The 9.7% increase in advances to $94,167 million indicates strong demand from members, reflecting broader economic conditions and potentially increased lending activity by these institutions. While quarterly net income saw a modest rise, the year-to-date decline in net income could impact dividend payouts to members, affecting their profitability. The bank's robust capital base of $8,489 million provides stability, but the overall decline in net interest income suggests a challenging interest rate environment that could pressure future earnings and competitive positioning against other funding sources.

Risk Assessment

Risk Level: medium — The FHLBA faces medium risk due to declining net interest income, which fell from $716 million to $631 million for the nine months ended September 30, 2025, indicating pressure on core profitability. Additionally, while total capital increased, the bank holds significant held-to-maturity securities with gross unrealized losses of $253 million as of September 30, 2025, exposing it to potential future impairments if market conditions deteriorate.

Analyst Insight

Investors should monitor FHLBA's net interest margin closely, as the decline in net interest income for the nine-month period suggests a challenging operating environment. Evaluate the impact of rising interest rates on the fair value of its held-to-maturity portfolio and the demand for advances from member institutions, as these factors will dictate future profitability and capital returns.

Financial Highlights

debt To Equity

17.1

revenue

$5,402M

operating Margin

N/A

total Assets

$153,864M

total Debt

$141,554M

net Income

$439M

eps

$N/A

gross Margin

N/A

cash Position

$78M

revenue Growth

-16.3%

Revenue Breakdown

Key Numbers

• $155M — Net Income (Q3 2025) (Increased 3.3% from $150M in Q3 2024)
• $439M — Net Income (YTD Sept 2025) (Decreased 15.7% from $521M in YTD Sept 2024)
• $153.86B — Total Assets (Increased 4.6% from $147.09B at Dec 31, 2024)
• $94.17B — Advances (Increased 9.7% from $85.83B at Dec 31, 2024)
• $5.40B — Total Interest Income (YTD Sept 2025) (Decreased 16.3% from $6.45B in YTD Sept 2024)
• $631M — Net Interest Income (YTD Sept 2025) (Decreased from $716M in YTD Sept 2024)
• $8.49B — Total Capital (Increased 7.0% from $7.93B at Dec 31, 2024)
• $253M — Gross Unrealized Losses on HTM Securities (As of Sept 30, 2025, indicating market risk)
• 60,723,425 — Class B Stock Shares Outstanding (As of October 31, 2025)
• $1,008M — Restricted Retained Earnings (Increased from $920M at Dec 31, 2024)

Key Players & Entities

• Federal Home Loan Bank of Atlanta (company) — registrant
• Securities and Exchange Commission (regulator) — filing oversight
• $155 million (dollar_amount) — net income for Q3 2025
• $150 million (dollar_amount) — net income for Q3 2024
• $439 million (dollar_amount) — net income for nine months ended Sept 30, 2025
• $521 million (dollar_amount) — net income for nine months ended Sept 30, 2024
• $153,864 million (dollar_amount) — total assets as of Sept 30, 2025
• $94,167 million (dollar_amount) — advances as of Sept 30, 2025
• $8,489 million (dollar_amount) — total capital as of Sept 30, 2025
• Federal Housing Finance Agency (regulator) — oversight and expense

FAQ

Risk Factors

• Interest Rate Fluctuations [high — market]: The FHLBA is exposed to market risk from fluctuations in interest rates, which can impact the fair value of its investment securities and the cost of its consolidated obligations. For example, available-for-sale securities had gross unrealized losses of $9 million as of September 30, 2025.
• Credit Risk on Advances [medium — financial]: The bank faces credit risk on the $94,167 million in advances to its members. While no allowance for credit losses was recorded for interest-bearing deposits or securities purchased under agreements to resell, the concentration of advances to members represents a key credit exposure.
• Unrealized Losses on Investments [medium — market]: As of September 30, 2025, the FHLBA reported gross unrealized losses of $253 million on held-to-maturity securities, indicating potential market value declines. While these are not recognized in net income, significant increases could impact capital if sales were required.
• Regulatory Compliance [medium — regulatory]: As a regulated entity, the FHLBA must comply with various regulations set forth by its conservator, the Federal Housing Finance Agency (FHFA). Changes in regulatory requirements or interpretations could impact operations and financial condition.
• Liquidity Management [medium — financial]: The FHLBA relies on issuing consolidated obligations to fund its operations and advances. Disruptions in the capital markets or changes in investor demand could affect its ability to access funding at favorable rates, impacting liquidity.

Industry Context

The Federal Home Loan Bank system operates as a government-sponsored enterprise, providing liquidity and credit to member financial institutions to support housing and community development. The FHLBA Atlanta competes with other FHLBanks and traditional funding sources for its members. Industry trends include managing interest rate risk in a volatile environment and adapting to evolving regulatory landscapes.

Regulatory Implications

The FHLBA operates under the oversight of the Federal Housing Finance Agency (FHFA), its conservator. Regulatory changes or directives from the FHFA can significantly impact the Bank's operations, capital requirements, and strategic decisions. Compliance with these regulations is paramount.

What Investors Should Do

1. Monitor interest rate sensitivity
2. Analyze trends in advances
3. Assess capital adequacy

Key Dates

• 2025-09-30: Quarter and Nine-Month Period End — Reporting date for the 10-Q, showing financial performance and condition, including net income of $155M for Q3 and $439M YTD, and total assets of $153.86B.
• 2024-12-31: Year-End Reporting Date — Prior period comparative data for total assets ($147.09B) and total capital ($7.93B).
• 2025-03-07: FHLBA 2024 Form 10-K Filing — Provides audited financial statements and detailed accounting policies, referenced for comparison with interim unaudited statements.

Glossary

Advances

Loans made by the FHLBA to its member institutions, primarily to support housing finance and community development. (Represents the largest asset category ($94,167M as of Sept 30, 2025) and a primary source of interest income.)

Consolidated Obligations

Debt securities issued by the FHLBA in the capital markets to fund its operations and lending activities. (The primary source of funding, totaling $141,554M in net consolidated obligations as of Sept 30, 2025.)

Available-for-sale securities

Debt securities that are not classified into held-to-maturity or trading categories. They are reported at fair value, with unrealized gains and losses recorded in other comprehensive income. (Totaled $7,783M in amortized cost as of Sept 30, 2025, with $7M in gross unrealized gains and $9M in gross unrealized losses.)

Held-to-maturity securities

Debt securities that the FHLBA has the intent and ability to hold until maturity. They are reported at amortized cost. (Totaled $25,546M at amortized cost as of Sept 30, 2025, with a fair value of $25,342M, indicating potential unrealized losses.)

Capital Stock Class B putable

Represents the ownership interests of members in the FHLBA, which can be redeemed under certain conditions. (Total capital stock was $5,560M as of Sept 30, 2025, forming a key component of the bank's capital structure.)

Restricted Retained Earnings

A portion of retained earnings that is subject to certain restrictions, often related to regulatory requirements or dividend policies. (Increased to $1,008M as of Sept 30, 2025, contributing to the bank's overall capital base.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, FHLBA Atlanta experienced a notable decrease in total interest income, falling 16.3% to $5,402 million, primarily driven by lower income from advances and held-to-maturity securities. Despite a decrease in interest expense, net interest income also declined. Total assets grew by 4.6% to $153.86 billion, largely due to a 9.7% increase in advances. Total capital saw a healthy increase of 7.0% to $8.49 billion, reflecting growth in capital stock and retained earnings. New risks identified include a $253 million gross unrealized loss on held-to-maturity securities, highlighting market risk exposure.

Key Financial Figures

• $100 — e registrant's Class B Stock, par value $100, as of October 31, 2025 was 60,723,425

Filing Documents

• fhlba-20250930.htm (10-Q) — 2313KB
• fhlb-atlq32025ex311.htm (EX-31.1) — 10KB
• fhlb-atlq32025ex312.htm (EX-31.2) — 10KB
• fhlb-atlq32025ex321.htm (EX-32.1) — 8KB
• 0001331465-25-000262.txt ( ) — 10026KB
• fhlba-20250930.xsd (EX-101.SCH) — 62KB
• fhlba-20250930_cal.xml (EX-101.CAL) — 97KB
• fhlba-20250930_def.xml (EX-101.DEF) — 298KB
• fhlba-20250930_lab.xml (EX-101.LAB) — 655KB
• fhlba-20250930_pre.xml (EX-101.PRE) — 469KB
• fhlba-20250930_htm.xml (XML) — 1920KB

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 13 Note 5— Mortgage Loans Held for Portfolio 14 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 19 Note 11—Estimated Fair Values 22 Note 12—Commitments and Contingencies 26 Note 13—Transactions with Shareholders 27 Note 14—Subsequent Events 28

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 29 Executive Summary 29 Financial Condition 32 Results of Operations 34 Additional Financial Data 39 Liquidity and Capital Resources 39 Legislative and Regulatory Developments 42 Risk Management 42 Critical Accounting Estimates 48

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 48

Controls and Procedures

Item 4. Controls and Procedures 51

OTHER INFORMATION

PART II. OTHER INFORMATION 51

Legal Proceedings

Item 1. Legal Proceedings 51

Risk Factors

Item 1A. Risk Factors 51

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 51

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 51

Mine Safety Disclosure

Item 4. Mine Safety Disclosure 51

Other Information

Item 5. Other Information 51

Exhibits

Item 6. Exhibits 52

SIGNATURES

SIGNATURES 53 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 September 30, 2025 As of December 31, 2024 Assets Cash and due from banks $ 78 $ 35 Interest-bearing deposits (including deposits with other FHLBanks of $ 3 as of September 30, 2025 and December 31, 2024) 2,530 1,493 Securities purchased under agreements to resell 6,500 21,200 Federal funds sold 16,041 7,158 Investment securities: Available-for-sale securities (amortized cost of $ 7,785 and $ 4,791 as of September 30, 2025 and December 31, 2024, respectively) 7,783 4,790 Held-to-maturity securities (fair value of $ 25,342 and $ 25,140 as of September 30, 2025 and December 31, 2024, respectively) 25,546 25,443 Total investment securities 33,329 30,233 Advances 94,167 85,829 Mortgage loans held for portfolio, net 81 89 Accrued interest receivable 532 490 Derivative assets 358 445 Other assets, net 248 119 Total assets $ 153,864 $ 147,091 Liabilities Interest-bearing deposits $ 2,415 $ 2,312 Consolidated obligations, net: Discount notes 39,325 32,152 Bonds 102,229 103,699 Total consolidated obligations, net 141,554 135,851 Mandatorily redeemable capital stock 1 1 Accrued interest payable 725 721 Affordable Housing Program payable 166 157 Derivative liabilities 2 12 Other liabilities 512 104 Total liabilities 145,375 139,158 Commitments and contingencies ( Note 12 ) Capital Capital stock Class B putable ($ 100 par value) issued and outstanding shares: Subclass B1 issued and outstanding shares: 10,684,433 and 10,435,821 as of September 30, 2025 and December 31, 2024, respectively 1,068 1,043 Subclass B2 issued and outstanding shares: 44,591,844 and 40,858,424 as of September 30, 2025 and December 31, 2024, respectively 4,459 4,086 Subclass B3 issued and outstanding shares: 330,550 and 189,559 as of September 30, 2025 and December 31, 2024, respectively 33 19 Total capital st

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 Bank for the annual period ended December 31, 2027, and the interim periods thereafter. Early adoption is permitted The Bank does not intend to adopt this guidance early. 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. Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06) The amendments in this ASU remove all references to prescriptive and sequential software development stages. Among other things, it requires an entity to start capitalizing software costs when management has committed to funding the project and it is probable that the project will be completed and used for its intended function. This guidance becomes effective for the Bank for the interim and annual periods beginning on January 1, 2028. Early adoption is permitted. The Bank is in the process of evaluating this guidance and its effect on the Bank's financial condition, results of operations, or cash flows. Note 3— Investments in Debt Securities Available-for-sale Securities The following table presents available-for-sale securities. As of September 30, 2025 As of December 31, 2024 Amortized Cost (1) Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Amortized Cost (1) Gross

NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Dollars in millions) 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 a continuous unrealized loss position. There were no available-for-sale securities with a continuous unrealized loss for 12 months or more as of December 31, 2024 . As of September 30, 2025 Less than 12 Months 12 Months or More Total Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses U.S. Treasury obligations $ 2,339 $ ( 2 ) $ — $ — $ 2,339 $ ( 2 ) Mortgage-backed securities: Government-sponsored enterprises commercial 969 ( 5 ) 333 ( 2 ) 1,302 ( 7 ) Total $ 3,308 $ ( 7 ) $ 333 $ ( 2 ) $ 3,641 $ ( 9 ) 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 September 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 Due after one year through five years 5,571 5,574 3,963 3,963 Total non-mortgage-backed securities 5,571 5,574 4,063 4,063 Mortgage-backed securities (2) 2,214 2,209 728 727 Total $ 7,785 $ 7,783 $ 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 $ 37 and $ 30 as of September 30, 2025 and December 31, 2024, respectively. (2) Mortgage-backed securities (MBS) are not pres

NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Dollars in millions) 1) A Held-to-maturity Securities The following table presents held-to-maturity securities. As of September 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 1,823 10 ( 23 ) 1,810 2,010 2 ( 36 ) 1,976 Government-sponsored enterprises residential 10,556 27 ( 114 ) 10,469 8,420 13 ( 151 ) 8,282 Government-sponsored enterprises commercial 12,371 10 ( 116 ) 12,265 14,217 15 ( 149 ) 14,083 Total $ 25,546 $ 49 $ ( 253 ) $ 25,342 $ 25,443 $ 33 $ ( 336 ) $ 25,140 ____________ (1) Excludes accrued interest receivable of $ 50 and $ 58 as of September 30, 2025 and December 31, 2024, respectively . The following table presents the amortized cost and estimated fair value of held-to-maturity securities by contractual maturity. As of September 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) 24,750 24,544 24,647 24,341 Total $ 25,546 $ 25,342 $ 25,443 $ 25,140 ____________ (1) Excludes accrued interest receivable of $ 50 and $ 58 as of September 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 oblig

NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Dollars in millions) Note 4— Advances The following table presents the Bank's advances outstanding by year of contractual maturity. As of September 30, 2025 As of December 31, 2024 Overdrawn demand deposit accounts $ 38 $ — Due in one year or less 66,357 59,497 Due after one year through two years 14,138 9,155 Due after two years through three years 4,924 4,768 Due after three years through four years 4,345 5,327 Due after four years through five years 1,170 2,730 Due after five years 3,327 4,831 Total par value 94,299 86,308 Deferred prepayment fees ( 1 ) 3 Discounts ( 1 ) ( 1 ) Hedging adjustments ( 130 ) ( 481 ) Total (1) $ 94,167 $ 85,829 ___________ (1) Carrying amounts exclude accrued interest receivable of $ 413 and $ 375 as of September 30, 2025 and December 31, 2024, respectively. The following table presents advances by year of contractual maturity or, for convertible advances, next available conversion date. As of September 30, 2025 As of December 31, 2024 Overdrawn demand deposit accounts $ 38 $ — Due or convertible in one year or less 70,506 63,194 Due or convertible after one year through two years 13,469 8,683 Due or convertible after two years through three years 4,449 3,994 Due or convertible after three years through four years 3,318 4,870 Due or convertible after four years through five years 820 1,526 Due or convertible after five years 1,699 4,041 Total par value $ 94,299 $ 86,308 The following table presents interest-rate payment terms for advances. As of September 30, 2025 As of December 31, 2024 Fixed-rate: Due in one year or less $ 16,055 $ 15,669 Due after one year 17,805 21,127 Total fixed-rate 33,860 36,796 Variable-rate: Due in one year or less 50,340 43,828 Due after one year 10,099 5,684 Total variable-rate 60,439 49,512 Total par value $ 94,299 $ 86,308 Advances concentrations The Bank's advances are concentrated in commercial banks, credit un

NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Dollars in millions) 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 September 30, 2025 and December 31, 2024. No advance was past due, on nonaccrual status, or considered impaired as of September 30, 2025 and December 31, 2024. There were no write-offs of advances or modification of advances to borrowers experiencing financial difficulties during the nine months ended September 30, 2025 and 2024. Note 5— Mortgage Loans Held for Portfolio The following

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