Federal Home Loan Bank of Atlanta (the Bank) today released preliminary unaudited financial highlights for the quarter and year ended December 31, 2023. All numbers reported below for 2023 are approximate until the Bank announces audited financial results in its Form 10-K, which is expected to be filed with the Securities and Exchange Commission (SEC) on or about March 8, 2024.
Fourth Quarter 2023 Operating Results
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Net income for the fourth quarter of 2023 was $174 million, an increase of $100 million, compared to net income of $74 million for the same period in 2022. The increase in net income was primarily due to a $134 million increase in net interest income.
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The increases in net interest income and net income were primarily due to an increase in interest rates which impacted income from interest-earning assets more than the expense from interest-bearing liabilities. The net yield on interest-earnings assets for the fourth quarter of 2023 was 58 basis points, an increase of 30 basis points, compared to 28 basis points for the same period in 2022. Many of the Bank’s assets and liabilities are indexed to the Secured Overnight Financing Rate (SOFR). Average daily SOFR during the fourth quarter of 2023 was 5.32 percent compared to 3.62 percent for the same period in 2022.
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The Bank’s fourth quarter 2023 performance resulted in an annualized return on average equity (ROE) of 7.83 percent as compared to 4.20 percent for the same period in 2022. The increase in ROE was primarily due to the increase in net income during the quarter.
Annual 2023 Operating Results
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Net income for the year ended December 31, 2023 was $649 million, an increase of $465 million, compared to net income of $184 million for the same period in 2022. The increase in net income was primarily due to a $562 million increase in net interest income.
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The increases in net interest income and net income were primarily due to an increase in interest rates which impacted…
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