Federal Home Loan Bank of Atlanta (the Bank) today released preliminary unaudited financial highlights for the quarter ended September 30, 2022. All numbers reported below for the third quarter of 2022 are approximate until the Bank announces unaudited financial results in its Form 10-Q which is expected to be filed with the Securities and Exchange Commission (SEC) on or about November 4, 2022.
Net income for the third quarter of 2022 was $47 million, an increase of $20 million, compared to net income of $27 million for the third quarter of 2021. The increase in net income is primarily due to a $17 million increase in net interest income. The increase in net interest income is primarily due to an increase in advance balances, partially offset by an increase in interest rates which have impacted interest bearing-liabilities more than the increase in interest-earning assets. During the third quarter of 2022, average advance balances were $83.4 billion, compared to $46.4 billion for the third quarter of 2021.
Total assets as of September 30, 2022 were $140.3 billion, an increase of $61.6 billion, or 78.2 percent, from December 31, 2021. Advances outstanding were $93.1 billion as of September 30, 2022, an increase of $47.7 billion, or 104.9 percent, from December 31, 2021. Retained earnings was $2.3 billion as of September 30, 2022, and did not vary significantly from the balance as of December 31, 2021. Capital stock was $4.2 billion as of September 30, 2022, an increase of $1.9 billion, or 78.0 percent, from December 31, 2021. The increase in capital stock was primarily due to an increase in advances which resulted in an increase in activity based stock.
The Bank’s third quarter 2022 performance resulted in an annualized return on average equity (ROE) of 3.06 percent as compared to 2.31 percent for the third quarter of 2021. The ROE spread to the average Secured Overnight Financing Rate decreased to 91 basis points for the third quarter of 2022, as compared to 226 basis points for the third quarter of 2021. As of September 30, 2022, the Bank was in compliance with its regulatory capital requirements.