Federal Home Loan Bank reports $1.5 million net loss in 1Q
The Federal Home Loan Bank of Atlanta has reported a $1.5 million net loss in the first quarter, compared to a profit of $116.6 million a year ago.
The bank also reported a 9 percent drop in assets, to $189.4 billion, amid declining demand for advances from member banks and increased competition from government programs providing alternate sources of funding.
Bank officials traced the sharp drop-off in income to a decrease in net interest income and a decline in total assessments.
"The bank remains a solid and stable funding source for member institutions, said Richard A. Dorfman, the bank's president and CEO. "And while we continue to take measures to protect capital in the short-term, the bank also is focused on taking steps that, in the longer-term, we believe will allow us to return to offering a competitive return on members' investment in the bank."
The Atlanta institution is one of 12 Federal Home Loan Banks across the country that Congress created during the Great Depression. The banks don't lend to individuals, but to member banks.
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