Federal Home Loan Bank of Atlanta declares dividend of 4.00%
ATLANTA, Oct 29, 2020 (GLOBE NEWSWIRE) – The Board of Directors of the Federal Home Loan Bank of Atlanta (FHLBank Atlanta) today approved a cash dividend for the third quarter of 2020 at an annualized rate of $ 4. 00%.
“The economic tensions caused by the COVID-19 pandemic continue to present challenges for the Federal Home Loan Bank of Atlanta, as well as its member financial institutions and the communities they serve,” said the chairman of the board of directors of Atlanta. FHLBank Atlanta Director Rick Whaley. “Despite these challenges, our co-op remains stable and we are happy to bring value back to our members with this third quarter dividend. “
The dividend rate is 3.75 percentage points of the average daily three-month LIBOR yield for the third quarter of 2020, and 3.91 percentage points of the average overnight guaranteed funding rate, also called SOFR, for the third quarter of 2020. The dividend will be calculated on the basis of the share capital held during this period. The dividend will be credited to shareholders’ daily investment accounts at the close of business on November 3, 2020.
In 2020, the actions taken by the Federal Reserve in response to the global pandemic associated with COVID-19 resulted in a significant drop in market interest rates. Additionally, the Federal Reserve has implemented a number of asset purchase programs to provide additional liquidity to financial markets. The additional market liquidity resulting from the actions of the Federal Reserve, as well as the increase in deposit levels, also led to a decrease in demand for advances from members of the Bank. The fall in market interest rates affected the Bank’s income on interest-bearing assets and, along with the decline in expected demand, also affected the Bank’s net profit. The Bank expects the current environment of low market interest rates, as well as the expected decline in demand, to continue for the foreseeable future, which is expected to reduce the Bank’s net profit for 2020 and could decrease the Bank’s future net income and affect the amount the bank pays in the form of dividends.
If you have any questions, please contact the FHLBank Atlanta Fundraising Office at 1.800.536.9650, ext. 8011.
About FHLBank Atlanta
FHLBank Atlanta offers competitively priced finance, community development grants, and other banking services to help member financial institutions obtain affordable mortgages and provide economic development credit to neighborhoods and communities. The members of the Bank (its shareholders and customers) are commercial banks, credit unions, savings institutions, community development financial institutions, and insurance companies located in Alabama, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and the District of Columbia. . FHLBank Atlanta is one of 11 district banks in the Federal Home Loan Bank System. Since 1990, the FHLBanks have provided approximately $ 6.6 billion in Affordable Housing Program funds, helping more than 957,000 households.
For more information, visit our website at www.fhlbatl.com.
Some of the statements made in this announcement are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, which include statements regarding the beliefs, plans, objectives, purposes of the Bank, expectations, expectations, assumptions, estimates, intentions and future performance, and involve known and unknown risks, uncertainties and other factors, many of which may be beyond the control of the Bank, and which may cause the results actual, performance or achievements are materially different from future results, performance or achievements expressed or implied by forward-looking statements.
Forward-looking statements may not come to fruition due to various factors, including, without limitation, one or more of the following factors: the impact of the COVID-19 pandemic on the Bank, its employees, its members and its counterparties, or on the capital markets and the US economy, the impact of which is evolving and unknowable at present and could include impacts on the Bank’s operations, liquidity, profitability, financial condition, results of operations and dividends. Other factors include actions, changes, approvals or legislative, regulatory and accounting requirements; uncertainties associated with the potential elimination of LIBOR; future economic and market conditions (including the housing market); changes in the demand for consolidated advances or obligations of the Bank and / or the FHLBank System; changes in interest rates; changes in prepayment speeds, default rates, defaults and losses on mortgage-backed securities; the volatility of market prices, rates and indices which could affect the value of financial instruments; changes in credit ratings and / or the terms of derivative transactions; changes in product offerings; political, national and global events, including the impact and results of the upcoming national elections in the United States; disruption of information systems; membership changes; and adverse developments or events affecting or involving other Federal mortgage banks or the FHLBank system in general. Additional factors that could cause the Bank’s results to differ from these forward-looking statements are set out in detail in the Bank’s filings with the SEC, which are available at www.fhlbatl.com and www.sec.gov
New factors may emerge, and it is not possible for us to predict the nature of each new factor, or to assess its potential impact, on our business and financial condition. In light of these uncertainties, we caution you not to place undue reliance on forward-looking statements. These statements are only valid on the date on which they are made, and the Bank has no obligation and does not undertake to publicly update, revise or correct any forward-looking statements after the date of this announcement, or after the respective dates. about which such statements are made, whether as a result of new information, future events or otherwise, except as required by law.
CONTACT: Peter E. Garuccio
Federal Home Loan Bank of Atlanta