10-Q 1 fhlb-atlq32012.htm 10-Q FHLB-ATL Q3 2012
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________________ 
FORM 10-Q
_____________________________________
  
ý
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2012
OR
 
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 000-51845
 _____________________________________ 
FEDERAL HOME LOAN BANK OF ATLANTA
(Exact name of registrant as specified in its charter)
_____________________________________  

Federally chartered corporation
 
56-6000442
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
 
 
1475 Peachtree Street, NE, Atlanta, Ga.
 
30309
(Address of principal executive offices)
 
(Zip Code)

Registrant’s telephone number, including area code: (404) 888-8000
_____________________________________  
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing for the past 90 days.    ý  Yes    ¨  No
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    ý  Yes    ¨  No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
¨
Accelerated filer
¨
 
 
 
 
Non-accelerated filer
x  (Do not check if a smaller reporting company)
Smaller reporting company
¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    ¨  Yes    ý  No
The number of shares outstanding of the registrant’s Class B Stock, par value $100, as of October 31, 2012, was 51,751,166.



Table of Contents
 



PART I. FINANCIAL INFORMATION
Item 1.
Financial Statements
FEDERAL HOME LOAN BANK OF ATLANTA
STATEMENTS OF CONDITION
(Unaudited)
(In millions, except par value)
 
As of
 
September 30, 2012
 
December 31, 2011
Assets
 
 
 
Cash and due from banks
$
12

 
$
6

Interest-bearing deposits (including deposits with other FHLBank of $2 as of September 30, 2012 and December 31, 2011)
1,005

 
1,203

Securities purchased under agreements to resell
250

 

Federal funds sold
7,014

 
12,630

Trading securities (includes other FHLBank’s bond of $80 and $82 as of September 30, 2012 and December 31, 2011, respectively)
2,393

 
3,120

Available-for-sale securities
2,770

 
2,942

Held-to-maturity securities (fair value of $16,475 and $16,242 as of September 30, 2012 and December 31, 2011, respectively)
16,286

 
16,243

Mortgage loans held for portfolio, net of allowance for credit losses on mortgage loans of $10 and $6 as of September 30, 2012 and December 31, 2011, respectively
1,335

 
1,633

Advances
80,543

 
86,971

Accrued interest receivable
264

 
314

Premises and equipment, net
32

 
35

Derivative assets
40

 
18

Other assets
134

 
155

Total assets
$
112,078

 
$
125,270

Liabilities
 
 
 
Interest-bearing deposits
$
2,061

 
$
2,655

Consolidated obligations, net:
 
 
 
Discount notes
21,767

 
24,330

Bonds
81,434

 
90,662

Total consolidated obligations, net
103,201

 
114,992

Mandatorily redeemable capital stock
42

 
286

Accrued interest payable
299

 
286

Affordable Housing Program payable
93

 
109

Derivative liabilities
160

 
241

Other liabilities
127

 
140

Total liabilities
105,983

 
118,709

Commitments and contingencies (Note 13)

 

Capital
 
 
 
Capital stock Class B putable ($100 par value) issued and outstanding shares:
 
 
 
Subclass B1 issued and outstanding shares: 12 as of September 30, 2012 and December 31, 2011
1,156

 
1,250

Subclass B2 issued and outstanding shares: 36 and 45 as of September 30, 2012 and December 31, 2011, respectively
3,635

 
4,468

Total capital stock Class B putable
4,791

 
5,718

Retained earnings:
 
 
 
Restricted
60

 
19

Unrestricted
1,341

 
1,235

Total retained earnings
1,401

 
1,254

Accumulated other comprehensive loss
(97
)
 
(411
)
Total capital
6,095

 
6,561

Total liabilities and capital
$
112,078

 
$
125,270

 
 
 
 
The accompanying notes are an integral part of these financial statements.

1


FEDERAL HOME LOAN BANK OF ATLANTA
STATEMENTS OF INCOME
(Unaudited)
(In millions)
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2012
 
2011
 
2012
 
2011
Interest income
 
 
 
 
 
 
 
Advances
$
74

 
$
51

 
$
216

 
$
181

Prepayment fees on advances, net
1

 
2

 
6

 
7

Interest-bearing deposits
2

 
1

 
5

 
3

Federal funds sold
4

 
6

 
14

 
18

Trading securities
28

 
37

 
90

 
118

Available-for-sale securities
40

 
42

 
125

 
131

Held-to-maturity securities
71

 
95

 
232

 
309

Mortgage loans held for portfolio
18

 
24

 
59

 
75

Total interest income
238

 
258

 
747

 
842

Interest expense
 
 
 
 
 
 
 
Consolidated obligations:
 
 
 
 
 
 
 
 Discount notes
6

 
4

 
15

 
15

 Bonds
140

 
144

 
449

 
472

Deposits

 

 
1

 
1

Mandatorily redeemable capital stock
1

 
1

 
3

 
3

Total interest expense
147

 
149

 
468

 
491

Net interest income
91

 
109

 
279

 
351

Provision for credit losses
1

 

 
4

 

Net interest income after provision for credit losses
90

 
109

 
275

 
351

Noninterest income (loss)
 
 
 
 
 
 
 
Total other-than-temporary impairment losses

 
(8
)
 

 
(45
)
Net amount of impairment losses reclassified from other comprehensive loss
(1
)
 
(11
)
 
(16
)
 
(63
)
Net impairment losses recognized in earnings
(1
)
 
(19
)
 
(16
)
 
(108
)
Net (losses) gains on trading securities
(9
)
 
36

 
(42
)
 
22

Net gains (losses) on derivatives and hedging activities
30

 
(67
)
 
83

 
(41
)
Letters of credit fees
5

 
6

 
14

 
14

Other
(1
)
 

 
2

 
2

Total noninterest income (loss)
24

 
(44
)
 
41

 
(111
)
Noninterest expense
 
 
 
 
 
 
 
Compensation and benefits
15

 
15

 
46

 
50

Other operating expenses
11

 
10

 
29

 
29

Finance Agency
2

 
2

 
8

 
8

Office of Finance
2

 
1

 
4

 
4

Other

 
1

 

 
(8
)
Total noninterest expense
30

 
29

 
87

 
83

Income before assessments
84

 
36

 
229

 
157

Assessments:
 
 
 
 
 
 
 
 Affordable Housing Program
8

 
4

 
23

 
14

 REFCORP

 

 

 
22

Total assessments
8

 
4

 
23

 
36

Net income
$
76

 
$
32

 
$
206

 
$
121


The accompanying notes are an integral part of these financial statements.

2


FEDERAL HOME LOAN BANK OF ATLANTA
STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(In millions)
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2012
 
2011
 
2012
 
2011
Net income
$
76

 
$
32

 
$
206

 
$
121

Other comprehensive income:
 
 
 
 
 
 
 
Net noncredit portion of other-than-temporary impairment losses on available-for-sale securities:
 
 
 
 
 
 
 
Noncredit losses transferred from held-to-maturity securities

 
(2
)
 

 
(28
)
Net change in fair value on other-than-temporary impairment available-for-sale securities
188

 
(32
)
 
297

 
22

Reclassification of noncredit portion of impairment losses included in net income
1

 
13

 
16

 
91

Net noncredit portion of other-than-temporary impairment losses on available-for-sale securities
189

 
(21
)
 
313

 
85

Net noncredit portion of other-than-temporary impairment losses on held-to-maturity securities:
 
 
 
 
 
 
 
Noncredit losses on held-to-maturity securities

 
(2
)
 

 
(28
)
Reclassification of noncredit portion from held-to-maturity securities to available-for-sale securities

 
2

 

 
28

Net noncredit portion of other-than-temporary impairment losses on held-to-maturity securities

 

 

 

Pension and postretirement benefits:
 
 
 
 
 
 
 
Total other comprehensive income

 

 
1

 

Total other comprehensive income (loss)
189

 
(21
)
 
314

 
85

Total comprehensive income
$
265

 
$
11

 
$
520

 
$
206


The accompanying notes are an integral part of these financial statements.

3


FEDERAL HOME LOAN BANK OF ATLANTA
STATEMENTS OF CAPITAL
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011
(Unaudited)
(In millions)
 
 
Capital Stock Class B Putable
 
Retained Earnings
 
Accumulated
Other
Comprehensive
Loss
 
Total Capital    
 
Shares        
 
Par Value
 
Restricted    
 
Unrestricted    
 
Total        
 
Balance, December 31, 2010
72

 
$
7,224

 
$

 
$
1,124

 
$
1,124

 
$
(402
)
 
$
7,946

Issuance of capital stock
2

 
173

 

 

 

 

 
173

Repurchase/redemption of capital stock
(14
)
 
(1,440
)
 

 

 

 

 
(1,440
)
Net shares reclassified to mandatorily redeemable capital stock
(1
)
 
(47
)
 

 

 

 

 
(47
)
Comprehensive income

 

 
6

 
115

 
121

 
85

 
206

Cash dividends on capital stock

 

 

 
(42
)
 
(42
)
 

 
(42
)
Balance, September 30, 2011
59

 
$
5,910

 
$
6

 
$
1,197

 
$
1,203

 
$
(317
)
 
$
6,796

Balance, December 31, 2011
57

 
$
5,718

 
$
19

 
$
1,235

 
$
1,254

 
$
(411
)
 
$
6,561

Issuance of capital stock
8

 
799

 

 

 

 

 
799

Repurchase/redemption of capital stock
(16
)
 
(1,667
)
 

 

 

 

 
(1,667
)
Net shares reclassified to mandatorily redeemable capital stock
(1
)
 
(59
)
 

 

 

 

 
(59
)
Comprehensive income

 

 
41

 
165

 
206

 
314

 
520

Cash dividends on capital stock

 

 

 
(59
)
 
(59
)
 

 
(59
)
Balance, September 30, 2012
48

 
$
4,791

 
$
60

 
$
1,341

 
$
1,401

 
$
(97
)
 
$
6,095


The accompanying notes are an integral part of these financial statements.

4


FEDERAL HOME LOAN BANK OF ATLANTA
STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions)
 
 
Nine Months Ended September 30,
 
2012
 
2011
Operating activities
 
 
 
Net income
$
206

 
$
121

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
(32
)
 
(24
)
  Provision for credit losses
4

 

  Loss due to change in net fair value adjustment on derivative and hedging activities
160

 
376

  Net change in fair value adjustment on trading securities
42

 
(22
)
  Net impairment losses recognized in earnings
16

 
108

 Loss on disposal of fixed assets and capital software costs
1

 

Net change in:
 
 
 
  Accrued interest receivable
50

 
70

  Other assets
14

 
31

  Affordable Housing Program payable
(18
)
 
(12
)
  Accrued interest payable
13

 
(17
)
  Payable to REFCORP

 
(20
)
  Other liabilities
(13
)
 
(30
)
  Total adjustments
237

 
460

Net cash provided by operating activities
443

 
581

Investing activities
 
 
 
Net change in:
 
 
 
  Interest-bearing deposits
280

 
(1,910
)
  Securities purchased under agreements to resell
(250
)
 

  Federal funds sold
5,616

 
(739
)
Trading securities:
 
 
 
  Proceeds from maturities
690

 
272

Available-for-sale securities:
 
 
 
  Proceeds from maturities
479

 
589

Held-to-maturity securities:
 
 
 
  Net change in short-term
75

 
90

  Proceeds from maturities of long-term
3,259

 
3,394

  Purchases of long-term
(3,382
)
 
(3,634
)
Advances:
 
 
 
  Proceeds from principal collected
131,679

 
54,701

  Made
(125,387
)
 
(40,277
)
Mortgage loans held for portfolio:
 
 
 
  Proceeds from principal collected
283

 
284

Proceeds from sale of foreclosed assets
10

 
12

Purchase of premise, equipment and software
(3
)
 
(4
)
Net cash provided by investing activities
13,349

 
12,778

 
 
 
 

5


FEDERAL HOME LOAN BANK OF ATLANTA
STATEMENTS OF CASH FLOWS—(Continued)
(Unaudited)
(In millions)
 
 
 
 
 
Nine Months Ended September 30,
 
2012
 
2011
Financing activities
 
 
 
Net change in deposits
(564
)
 
39

Net payments on derivatives containing a financing element
(250
)
 
(379
)
Proceeds from issuance of consolidated obligations:
 
 
 
 Discount notes
240,007

 
780,788

 Bonds
49,297

 
61,612

Payments for debt issuance costs
(7
)
 
(12
)
Payments for maturing and retiring consolidated obligations:
 
 
 
 Discount notes
(242,574
)
 
(788,638
)
 Bonds
(58,465
)
 
(65,204
)
Proceeds from issuance of capital stock
799

 
173

Payments for repurchase/redemption of capital stock
(1,667
)
 
(1,440
)
Payments for repurchase/redemption of mandatorily redeemable capital stock
(303
)
 
(257
)
Cash dividends paid
(59
)
 
(42
)
Net cash used in financing activities
(13,786
)
 
(13,360
)
Net increase (decrease) in cash and due from banks
6

 
(1
)
Cash and due from banks at beginning of the period
6

 
5

Cash and due from banks at end of the period
$
12

 
$
4

Supplemental disclosures of cash flow information:
 
 
 
 Cash paid for:
 
 
 
Interest
$
476

 
$
536

Affordable Housing Program assessments, net
$
40

 
$
24

REFCORP assessments
$

 
$
42

 Noncash investing and financing activities:
 
 
 
Net shares reclassified to mandatorily redeemable capital stock
$
59

 
$
47

Transfer of held-to-maturity securities to available-for-sale securities
$
6

 
$
369

Transfers of mortgage loans to real estate owned
$
11

 
$
13


The accompanying notes are an integral part of these financial statements.

 


6


FEDERAL HOME LOAN BANK OF ATLANTA
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 at 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 year ending December 31, 2012, 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, 2011, which are contained in the Bank’s 2011 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 23, 2012 (Form 10-K).
A description of the Bank’s significant accounting policies is included in Note 2–Summary of Significant Accounting Policies to the 2011 audited financial statements contained in the Bank’s Form 10-K. There have been no material changes to these policies as of September 30, 2012.

Note 2—Recently Issued and Adopted Accounting Guidance
Recently Issued Accounting Guidance
Disclosures about Offsetting Assets and Liabilities. In December 2011, the Financial Accounting Standards Board (FASB) issued disclosure requirements that are intended to help investors and other financial statement users to better assess the effect or potential effect of offsetting arrangements on an entity’s financial position. Entities are required to disclose both gross and net information about instruments and transactions eligible for offset in the statement of financial position as well as instruments and transactions subject to an agreement similar to a master netting arrangement. In addition, entities are required to disclose collateral received and posted in connection with master netting agreements or similar arrangements. This guidance is effective for interim and annual periods beginning on or after January 1, 2013 and will be applied retrospectively for all comparative periods presented. The adoption of this guidance will result in increased disclosures, but will have no effect on the Bank’s financial condition or results of operations.
Recently Adopted Accounting Guidance
Presentation of Comprehensive Income. In June 2011, the FASB issued amended guidance that eliminates the option to report other comprehensive income and its components in the statement of change in equity. The main provisions of this amended guidance provide that an entity that reports items of other comprehensive income present comprehensive income in either: (1) a single financial statement that presents the components of net income and total net income, the components of other comprehensive income and total other comprehensive income, and total comprehensive income; or (2) a two-statement approach, where the components of net income and total net income are presented in the first statement, immediately followed by a financial statement that presents the components of other comprehensive income, a total for other comprehensive income, and total comprehensive income. For public entities, this amended guidance is effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2011. The Bank adopted this guidance effective January 1, 2012. The adoption of this guidance did not have any effect on the Bank’s financial condition or results of operations.
Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. In May 2011, the FASB issued amended guidance to converge fair value measurement and disclosure guidance in GAAP with the fair value measurement guidance concurrently issued by the International Accounting Standards Board for International Financial Reporting Standards (IFRS). The amended guidance does not extend the use of fair value but, rather, provides guidance about how fair value should be applied where it already is required or permitted under GAAP. While many of the changes are clarifications of existing guidance or wording changes to align with IFRS, the amended guidance changes some fair value measurement principles and disclosure requirements. For public entities, this guidance is effective prospectively for interim and annual periods beginning on or after December 15, 2011. The Bank adopted this guidance effective January 1, 2012. The adoption of this guidance did not have any effect on the Bank’s financial condition or results of operations.

7

FEDERAL HOME LOAN BANK OF ATLANTA
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(Dollars in millions)


Reconsideration of Effective Control for Repurchase Agreements. In April 2011, the FASB issued guidance to improve the accounting for repurchase agreements and other agreements that both entitle and obligate a transferor to repurchase or redeem financial assets before their maturity. The new guidance removes certain criteria from the assessment of effective control. This guidance is effective for the first interim or annual periods beginning on or after December 15, 2011. This guidance should be applied prospectively to transactions or modifications of existing transactions that occur on or after the effective date. The Bank adopted this guidance effective January 1, 2012. The adoption of this guidance did not have any effect on the Bank’s financial condition or results of operations.

Note 3—Trading Securities
Major Security Types. Trading securities were as follows:
 
 
As of September 30, 2012
 
As of December 31, 2011
Government-sponsored enterprises debt obligations
$
2,312

 
$
3,035

Other FHLBank’s bond (1)
80

 
82

State or local housing agency debt obligations
1

 
3

Total
$
2,393

 
$
3,120

 ____________
(1) 
The Federal Home Loan Bank of Chicago is the primary obligor of this consolidated obligation bond.
Net unrealized and realized (losses) gains on trading securities were as follows:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2012
 
2011
 
2012
 
2011
Net unrealized (losses) gains on trading securities held at period end
$
(9
)
 
$
36

 
$
(35
)
 
$
28

Net unrealized/realized losses on trading securities sold/matured during the period

 

 
(7
)
 
(6
)
Net (losses) gains on trading securities
$
(9
)
 
$
36

 
$
(42
)
 
$
22


As of September 30, 2012 and December 31, 2011, 99.9 percent of the Bank’s fixed-rate trading securities were swapped and all of the Bank’s variable-rate trading securities were swapped.

Note 4—Available-for-sale Securities
During the nine-month periods ended September 30, 2012 and 2011, the Bank transferred certain private-label mortgage-backed securities (MBS) from its held-to-maturity portfolio to its available-for-sale portfolio. These securities represent private-label MBS in the Bank’s held-to-maturity portfolio for which the Bank has recorded an other-than-temporary impairment loss. The Bank believes the other-than-temporary impairment loss constitutes evidence of a significant deterioration in the issuer’s creditworthiness. The Bank has no current plans to sell these securities nor is the Bank under any requirement to sell these securities.

8

FEDERAL HOME LOAN BANK OF ATLANTA
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(Dollars in millions)


The following table presents information on private-label MBS transferred. The amounts below represent the values as of the transfer date.
 
 
2012
 
2011
 
Amortized    
Cost
 
Other-than-temporary
Impairment
Recognized in
Accumulated Other
Comprehensive Loss
 
Estimated
Fair Value
 
Amortized    
Cost
 
Other-than-temporary
Impairment
Recognized in
Accumulated Other
Comprehensive Loss
 
Estimated
Fair Value
Transferred at March 31,
$
6

 
$

 
$
6

 
$
322

 
$
20

 
$
302

Transferred at June 30,

 

 

 
52

 
6

 
46

Transferred at September 30,

 

 

 
23

 
2

 
21

Total
$
6

 
$

 
$
6

 
$
397

 
$
28

 
$
369


Major Security Types. Available-for-sale securities were as follows:
 
 
As of September 30, 2012
 
Amortized    
Cost
 
Other-than-temporary
Impairment
Recognized in
Accumulated Other
Comprehensive Loss
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
Private-label MBS
$
2,855

 
$
156

 
$
71

 
$

 
$
2,770


 
As of December 31, 2011
 
Amortized  
Cost
 
Other-than-temporary  
Impairment
Recognized in
Accumulated Other
Comprehensive Loss
 
Gross
  Unrealized  
Gains
 
Gross
  Unrealized  
Losses
 
Estimated
  Fair  Value  
Private-label MBS
$
3,340

 
$
392

 
$
12

 
$
18

 
$
2,942


The following tables summarize the available-for-sale securities with unrealized losses. The unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position.
 
 
As of September 30, 2012
 
Less than 12 Months
 
12 Months or More
 
Total
 
  Number of  
Positions
 
Estimated
  Fair  Value  
 
Gross
  Unrealized  
Losses
 
  Number of  
Positions
 
Estimated
  Fair  Value  
 
Gross
  Unrealized  
Losses
 
  Number of  
Positions
 
Estimated
  Fair  Value  
 
Gross
  Unrealized  
Losses
Private-label MBS
1

 
$
1

 
$

 
29

 
$
1,479

 
$
156

 
30

 
$
1,480

 
$
156

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2011
 
Less than 12 Months
 
12 Months or More
 
Total
 
  Number of  
Positions
 
Estimated
  Fair  Value  
 
Gross
  Unrealized  
Losses
 
  Number of  
Positions
 
Estimated
  Fair  Value  
 
Gross
  Unrealized   
Losses
 
  Number of  
Positions
 
Estimated
  Fair  Value  
 
Gross
  Unrealized  
Losses
Private-label MBS
10

 
$
635

 
$
26

 
42

 
$
2,053

 
$
384

 
52

 
$
2,688

 
$
410


The Bank did not swap any of its available-for-sale securities as of September 30, 2012 and December 31, 2011.

9

FEDERAL HOME LOAN BANK OF ATLANTA
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(Dollars in millions)


A summary of available-for-sale MBS issued by members or affiliates of members follows:
 
 
As of September 30, 2012
 
Amortized  
Cost
 
Other-than-temporary  
Impairment
Recognized in
Other Accumulated
Comprehensive Loss
 
Gross
  Unrealized  
Gains
 
Gross
  Unrealized  
Losses
 
Estimated
  Fair  Value  
Bank of America Corporation, Charlotte, NC
$
1,794

 
$
138

 
$
40

 
$

 
$
1,696

 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2011
 
Amortized
Cost
 
Other-than-temporary
Impairment
Recognized in
Other Accumulated
Comprehensive Loss
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
Bank of America Corporation, Charlotte, NC
$
2,027

 
$
287

 
$
1

 
$
12

 
$
1,729


Note 5—Held-to-maturity Securities
Major Security Types. Held-to-maturity securities were as follows:
 
 
As of September 30, 2012
 
As of December 31, 2011
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair  Value
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair  Value
Certificates of deposit
$
575

 
$

 
$

 
$
575

 
$
650

 
$

 
$

 
$
650

State or local housing agency debt obligations
110

 
2

 

 
112

 
100

 
1

 

 
101

Government-sponsored enterprises debt obligations
1,358

 
1

 

 
1,359

 
1,111

 
1

 

 
1,112

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. agency obligations-guaranteed
673

 
8

 

 
681

 
803

 
8

 

 
811

Government-sponsored enterprises
10,625

 
192

 
2

 
10,815

 
9,886

 
185

 
5

 
10,066

Private-label
2,945

 
33

 
45

 
2,933

 
3,693

 
28

 
219

 
3,502

Total
$
16,286

 
$
236

 
$
47

 
$
16,475

 
$
16,243

 
$
223

 
$
224

 
$
16,242



10

FEDERAL HOME LOAN BANK OF ATLANTA
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(Dollars in millions)


The following tables summarize the held-to-maturity securities with unrealized losses. The unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position.
 
 
As of September 30, 2012
 
Less than 12 Months
 
12 Months or More
 
Total
 
Number of
Positions
 
Estimated
Fair  Value
 
Gross
Unrealized
Losses
 
Number of
Positions
 
Estimated
Fair  Value
 
Gross
Unrealized
Losses
 
Number of
Positions
 
Estimated
Fair  Value
 
Gross
Unrealized
Losses
Government-sponsored enterprises debt obligations
4

 
$
375

 
$

 

 
$

 
$

 
4

 
$
375

 
$

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government-sponsored enterprises
2

 
177

 

 
3

 
90

 
2

 
5

 
267

 
2

Private-label
1

 
42

 

 
56

 
1,435

 
45

 
57

 
1,477

 
45

Total
7

 
$
594

 
$

 
59

 
$
1,525

 
$
47

 
66

 
$
2,119

 
$
47

 
 
As of December 31, 2011
 
Less than 12 Months
 
12 Months or More
 
Total
 
Number of
Positions
 
Estimated
Fair  Value
 
Gross
Unrealized
Losses
 
Number of
Positions
 
Estimated
Fair  Value
 
Gross
Unrealized
Losses
 
Number of
Positions
 
Estimated
Fair  Value
 
Gross
Unrealized
Losses
Certificates of deposit
3

 
$
350

 
$

 

 
$

 
$

 
3

 
$
350

 
$

Government-sponsored enterprises debt obligations
3

 
194

 

 

 

 

 
3

 
194

 

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government-sponsored enterprises
9

 
1,104

 
3

 
10

 
804

 
2

 
19

 
1,908

 
5

Private-label
23

 
437

 
8

 
59

 
1,656

 
211

 
82

 
2,093

 
219

Total
38

 
$
2,085

 
$
11

 
69

 
$
2,460

 
$
213

 
107

 
$
4,545

 
$
224


Redemption Terms. The amortized cost and estimated fair value of held-to-maturity securities by contractual maturity are shown below. Expected maturities of some securities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees.

 
As of September 30, 2012
 
As of December 31, 2011
 
Amortized
Cost
 
Estimated
Fair Value
 
Amortized
Cost
 
Estimated
Fair Value
Non-mortgage-backed securities:
 
 
 
 
 
 
 
Due in one year or less
$
619

 
$
619

 
$
703

 
$
702

Due after one year through five years
1,424

 
1,427

 
1,158

 
1,161

Total non-mortgage-backed securities
2,043

 
2,046

 
1,861

 
1,863

Mortgage-backed securities
14,243

 
14,429

 
14,382

 
14,379

Total
$
16,286

 
$
16,475

 
$
16,243

 
$
16,242


The amortized cost of the Bank’s MBS classified as held-to-maturity includes net discounts of $11 and $13 as of September 30, 2012 and December 31, 2011, respectively.

11

FEDERAL HOME LOAN BANK OF ATLANTA
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(Dollars in millions)


A summary of held-to-maturity MBS issued by members or affiliates of members follows:
 
 
As of September 30, 2012
 
As of December 31, 2011
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair  Value
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair  Value
Bank of America Corporation, Charlotte, NC
$
973

 
$
11

 
$
15

 
$
969

 
$
1,226

 
$
10

 
$
56

 
$
1,180


Note 6—Other-than-temporary Impairment
The Bank evaluates its individual available-for-sale and held-to-maturity securities holdings in an unrealized loss position for other-than-temporary impairment on a quarterly basis. As part of this process, the Bank considers its intent to sell each debt security and whether it is more likely than not the Bank will be required to sell the security before its anticipated recovery. If either of these conditions is met, the Bank recognizes the maximum impairment loss in earnings which is equal to the entire difference between the security’s amortized cost basis and its fair value as of the Statements of Condition date. For securities in an unrealized loss position that meet neither of these conditions, the Bank evaluates whether there is other-than-temporary impairment by performing an analysis to determine if any of these securities will incur a credit loss, which could be up to the difference between the security’s amortized cost basis and its fair value.
Mortgage-backed Securities. The Bank’s investments in MBS consist of U.S. agency guaranteed securities and senior tranches of private-label MBS. The Bank has increased exposure to the risk of loss on its investments in MBS when the loans backing the MBS exhibit high rates of delinquency and foreclosures, as well as losses on the sale of foreclosed properties. The Bank regularly requires high levels of credit enhancements from the structure of the collateralized mortgage obligation to reduce its risk of loss on such securities. Credit enhancements are defined as the percentage of subordinate tranches, overcollateralization, or excess spread, or the support of monoline insurance, if any, in a security structure that will absorb the losses before the security the Bank purchased will take a loss. The Bank does not purchase credit enhancements for its MBS from monoline insurance companies.
The Bank’s investments in private-label MBS were rated “AAA” (or its equivalent) by a nationally recognized statistical rating organization (NRSRO), such as Moody’s Investors Service (Moody’s) and Standard and Poor’s Ratings Services (S&P), at purchase date. The “AAA”-rated securities achieved their ratings through credit enhancement, overcollateralization and senior-subordinated shifting interest features; the latter results in subordination of payments by junior classes to ensure cash flows to the senior classes. The ratings on a significant number of the Bank’s private-label MBS have changed since their purchase date.
Non-private-label MBS. The unrealized losses related to U.S. agency MBS and government-sponsored enterprises MBS are caused by interest rate changes and not credit quality. These securities are guaranteed by government agencies or government-sponsored enterprises and the Bank does not expect these securities to be settled at a price less than the amortized cost basis. In addition, the Bank does not intend to sell these investments and it is not more likely than not that the Bank will be required to sell these investments before recovery of their amortized cost basis, which may be at maturity. The Bank does not consider these investments to be other-than-temporarily impaired as of September 30, 2012.
Private-label MBS. To assess whether the entire amortized cost basis of its private-label MBS will be recovered, the Bank performs a cash flow analysis for each of its private-label MBS. In performing the cash flow analysis for each of these securities, the Bank uses two third-party models. The first model considers borrower characteristics and the particular attributes of the loans underlying the Bank’s securities, in conjunction with assumptions about future changes in home prices and interest rates, to project prepayments, defaults, and loss severities. A significant input to the first model is the forecast of future housing price changes for the relevant states and core based statistical areas (CBSAs), which are based upon an assessment of the individual housing markets. The term CBSA refers collectively to metropolitan and micropolitan statistical areas as defined by the United States Office of Management and Budget; as currently defined, a CBSA must contain at least one urban area of 10,000 or more people. The Bank’s housing price forecast as of September 30, 2012 assumed current-to-trough home price declines ranging from zero percent (for those housing markets that are believed to have reached their trough) to four percent. For those markets for which further home price declines are anticipated, such declines were projected to occur over the three- to nine-month period beginning July 1, 2012. For the vast majority of markets where further home price declines are anticipated, the declines were projected to range from one percent to two percent over the three-month period beginning July 1, 2012.

12

FEDERAL HOME LOAN BANK OF ATLANTA
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(Dollars in millions)


From the trough, home prices were projected to recover using one of five different recovery paths that vary by housing market. The following table presents projected home price recovery ranges by months as of September 30, 2012:
 
Months
 
Annualized Rates (%)    
1 to 6
 
0.00 to 2.80
7 to 18
 
0.00 to 3.00
19 to 24  
 
1.00 to 4.00
25 to 30  
 
2.00 to 4.00
31 to 42  
 
2.00 to 5.00
43 to 66  
 
2.00 to 6.00
Thereafter  
 
2.30 to 5.60
 
The month-by-month projections of future loan performance derived from the first model, which reflect projected prepayments, defaults, and loss severities, were then input into a second model that allocates the projected loan level cash flows and losses to the various security classes in the securitization structure in accordance with its prescribed cash flow and loss allocation rules. The model classifies securities, as noted in the below table, based on current characteristics and performance, which may be different from the securities’ classification as determined by the originator at the time of origination.
At each quarter end, the Bank compares the present value of the cash flows (discounted at the securities effective yield) expected to be collected with respect to its private-label MBS to the amortized cost basis of the security to determine whether a credit loss exists. For the Bank’s variable rate and hybrid private-label MBS, the Bank uses a forward interest rate curve to project the future estimated cash flows. The Bank then uses the effective interest rate for the security prior to impairment for determining the present value of the future estimated cash flows. For securities previously identified as other-than-temporarily impaired, the Bank updates its estimate of future estimated cash flows on a quarterly basis.
The following table represents a summary of the significant inputs used to measure the amount of the credit loss recognized in earnings for those securities for which an other-than-temporary impairment was determined to have occurred during the three-month period ended September 30, 2012 as well as related current credit enhancement:
 
 
 
Significant Inputs
 
 
 
 
 
 
Prepayment Rate
 
Default Rates
 
Loss Severities
 
Current Credit Enhancement
Year of
Securitization
 
Weighted    
Average
(%)
 
Range (%)
 
Weighted    
Average
(%)
 
Range (%)    
 
Weighted    
Average
(%)
 
Range (%)    
 
Weighted    
Average
(%)
 
Range (%)    
Prime:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2006
 
8.29
 
7.06 to 8.74  
 
27.87
 
25.76 to 33.76
 
42.90
 
42.03 to 45.33
 
(0.10
)
 
(0.13) to 0.00  
Alt-A:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2006
 
6.31
 
6.31 to 6.31  
 
58.78
 
58.78 to 58.78  
 
56.45
 
56.45 to 56.45
 
0.03

 
0.03 to 0.03
2005
 
9.07
 
9.07 to 9.07  
 
34.10
 
34.10 to 34.10
 
38.19
 
38.19 to 38.19
 
5.21

 
5.21 to 5.21
Total Alt-A
 
6.81
 
6.31 to 9.07  
 
54.33
 
34.10 to 58.78  
 
53.16
 
38.19 to 56.45 
 
0.96

 
0.03 to 5.21
Total
 
7.75
 
6.31 to 9.07  
 
37.59
 
25.76 to 58.78  
 
46.67
 
38.19 to 56.45
 
0.29

 
(0.13) to 5.21


13

FEDERAL HOME LOAN BANK OF ATLANTA
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(Dollars in millions)


The following table presents a roll-forward of the amount of credit losses on the Bank’s investment securities recognized in earnings for which a portion of the other-than-temporary loss was recognized in accumulated other comprehensive loss:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2012
 
2011
 
2012
 
2011
Balance of credit losses previously recognized in earnings, beginning of period
$
597

 
$
553

 
$
582

 
$
464

Amount related to credit loss for which an other-than-temporary impairment was not previously recognized

 

 

 
10

Amount related to credit loss for which an other-than-temporary impairment was previously recognized
1

 
19

 
16

 
98

Balance of cumulative credit losses recognized in earnings, end of period
$
598

 
$
572

 
$
598

 
$
572


Certain other private-label MBS that have not been designated as other-than-temporarily impaired have experienced unrealized losses and decreases in fair value due to interest rate volatility, illiquidity in the marketplace, and general disruption in the U.S. mortgage markets. These declines in fair value are considered temporary as the Bank expects to recover the amortized cost basis of the securities, the Bank does not intend to sell these securities and it is not more likely than not that the Bank will be required to sell these securities before the anticipated recovery of the securities’ remaining amortized cost basis, which may be at maturity. This assessment is based on the fact that the Bank has sufficient capital and liquidity to operate its business and has no need to sell these securities, nor has the Bank entered into any contractual constraints that would require the Bank to sell these securities.

Note 7—Advances
Redemption Terms. The Bank had advances outstanding, as summarized below.
 
 
As of September 30, 2012
 
As of December 31, 2011
Overdrawn demand deposit accounts
$

 
$
3

Due in one year or less
30,422

 
36,542

Due after one year through two years
9,992

 
11,173

Due after two years through three years
6,131

 
7,851

Due after three years through four years
4,716

 
3,881

Due after four years through five years
8,868

 
5,836

Due after five years
16,208

 
17,283

Total par value
76,337

 
82,569

Discount on AHP (1) advances
(11
)
 
(12
)
Discount on EDGE (2) advances
(9
)
 
(10
)
Hedging adjustments
4,232

 
4,431

Deferred commitment fees
(6
)
 
(7
)
Total
$
80,543

 
$
86,971

 ____________
(1) 
The Affordable Housing Program
(2)
The Economic Development and Growth Enhancement program

14

FEDERAL HOME LOAN BANK OF ATLANTA
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(Dollars in millions)


The following table summarizes advances by year of contractual maturity or, for convertible advances, next conversion date:
 
 
As of September 30, 2012
 
As of December 31, 2011
Overdrawn demand deposit accounts
$

 
$
3

Due or convertible in one year or less
35,577

 
42,376

Due or convertible after one year through two years
9,910

 
11,946

Due or convertible after two years through three years
6,272

 
7,716

Due or convertible after three years through four years
4,302

 
3,464

Due or convertible after four years through five years
7,073

 
5,021

Due or convertible after five years
13,203

 
12,043

Total par value
$
76,337

 
$
82,569


Interest-rate Payment Terms. The following table details interest-rate payment terms for advances:
 
 
As of September 30, 2012
 
As of December 31, 2011
Fixed-rate:
 
 
 
 Due in one year or less
$
27,729

 
$
32,389

 Due after one year
37,401

 
38,811

Total fixed-rate
65,130

 
71,200

Variable-rate:
 
 
 
 Due in one year or less
2,693

 
4,156

 Due after one year
8,514

 
7,213

Total variable-rate
11,207

 
11,369

Total par value
$
76,337

 
$
82,569


As of September 30, 2012 and December 31, 2011, 64.1 percent and 65.7 percent, respectively, of the Bank’s fixed-rate advances were swapped and 30.7 percent and 9.79 percent respectively, of the Bank’s variable-rate advances were swapped.
Based on the collateral pledged as security for advances, the Bank's credit analysis of members’ financial condition, and prior repayment history, no allowance for credit losses on advances was deemed necessary by the Bank as of September 30, 2012 and December 31, 2011. No advance was past due as of September 30, 2012 and December 31, 2011.
The Bank’s potential credit risk from advances is concentrated in commercial banks, savings institutions and credit unions and further is concentrated in certain larger borrowing relationships. As of September 30, 2012 and December 31, 2011, the concentration of the Bank’s advances was $56,073 and $56,991 respectively, to 10 member institutions, and representing 73.5 percent and 69.0 percent, respectively, of total advances outstanding.

Note 8—Consolidated Obligations
Consolidated obligations, consisting of consolidated obligation bonds and discount notes, are the joint and several obligations of the 12 Federal Home Loan Banks (FHLBanks) and are backed only by the financial resources of the FHLBanks. The Federal Home Loan Banks Office of Finance (Office of Finance) tracks the amount of debt issued on behalf of each FHLBank. In addition, the Bank separately tracks and records as a liability its specific portion of consolidated obligations for which it is the primary obligor.

15

FEDERAL HOME LOAN BANK OF ATLANTA
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(Dollars in millions)


Interest-rate Payment Terms. The following table details the Bank’s consolidated obligation bonds by interest-rate payment type:
 
 
As of September 30, 2012
 
As of December 31, 2011
Fixed-rate
$
76,153

 
$
84,571

Step up/down
3,067

 
2,978

Simple variable-rate
1,000

 
1,850

Variable-rate capped floater
20

 
20

Total par value
$
80,240

 
$
89,419


As of September 30, 2012 and December 31, 2011, 81.2 percent and 81.9 percent, respectively, of the Bank’s fixed-rate consolidated obligation bonds were swapped and 1.96 percent and 6.42 percent, respectively, of the Bank’s variable-rate consolidated obligation bonds were swapped.
Redemption Terms. The following is a summary of the Bank’s participation in consolidated obligation bonds outstanding, by year of contractual maturity:
 
 
As of September 30, 2012
 
As of December 31, 2011
 
Amount
 
Weighted-
average
Interest Rate (%)    
 
Amount
 
Weighted-
average
Interest Rate (%)    
Due in one year or less
$
51,359

 
0.82
 
$
48,163

 
0.57
Due after one year through two years
12,667

 
1.90
 
20,987

 
1.83
Due after two years through three years
1,495

 
2.14
 
7,927

 
2.40
Due after three years through four years
3,426

 
3.72
 
2,083

 
2.65
Due after four years through five years
6,391

 
2.80
 
4,005

 
3.79
Due after five years
4,902

 
2.82
 
6,254

 
3.97
Total par value
80,240

 
1.41
 
89,419

 
1.46
Premiums
86

 
 
 
101

 
 
Discounts
(37
)
 
 
 
(38
)
 
 
Hedging adjustments
1,145

 
 
 
1,180

 
 
Total
$
81,434

 
 
 
$
90,662

 
 

The Bank’s consolidated obligation bonds outstanding by call feature:
 
 
As of September 30, 2012
 
As of December 31, 2011
Noncallable
$
71,368

 
$
60,794

Callable
8,872

 
28,625

Total par value
$
80,240

 
$
89,419



16

FEDERAL HOME LOAN BANK OF ATLANTA
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(Dollars in millions)


The following table summarizes the Bank’s consolidated obligation bonds outstanding, by year of contractual maturity or, for callable consolidated obligation bonds, next call date:

 
As of September 30, 2012
 
As of December 31, 2011
Due or callable in one year or less
$
55,754

 
$
60,321

Due or callable after one year through two years
12,007

 
17,467

Due or callable after two years through three years
1,035

 
3,284

Due or callable after three years through four years
3,088

 
1,110

Due or callable after four years through five years
6,061

 
2,870

Due or callable after five years
2,295

 
4,367

Total par value
$
80,240

 
$
89,419


Consolidated Obligation Discount Notes. Consolidated obligation discount notes are issued to raise short-term funds. Consolidated obligation discount notes are consolidated obligations with contractual maturities of up to one year. These consolidated obligation discount notes are issued at less than their face amounts and redeemed at par value when they mature.
The Bank’s participation in consolidated obligation discount notes was as follows:
 
 
Book Value
 
Par Value
 
Weighted-    
average
Interest
Rate (%)
As of September 30, 2012
$
21,767

 
$
21,773

 
0.12
As of December 31, 2011
$
24,330

 
$
24,331

 
0.03

As of September 30, 2012 and December 31, 2011, 0.00 percent and 4.64 percent, respectively, of the Bank’s fixed-rate consolidated obligation discount notes were swapped to a variable rate.

Note 9—Capital and Mandatorily Redeemable Capital Stock
Capital. The Bank was in compliance with the Federal Housing Finance Agency (Finance Agency) regulatory capital rules and requirements, as shown in the following table:
 
 
As of September 30, 2012
 
As of December 31, 2011
 
Required    
 
Actual        
 
Required    
 
Actual        
Risk based capital
$
1,705

 
$
6,234

 
$
1,951

 
$
7,258

Total capital-to-assets ratio
4.00
%
 
5.56
%
 
4.00
%
 
5.79
%
Total regulatory capital (1)
$
4,483

 
$
6,234

 
$
5,011

 
$
7,258

Leverage ratio
5.00
%
 
8.34
%
 
5.00
%
 
8.69
%
Leverage capital
$
5,604

 
$
9,351

 
$
6,264

 
$
10,887

___________
(1) 
Mandatorily redeemable capital stock is considered capital for regulatory purposes, and “total regulatory capital” includes the Bank’s $42 and $286 in mandatorily redeemable capital stock as of September 30, 2012 and December 31, 2011, respectively.

17

FEDERAL HOME LOAN BANK OF ATLANTA
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(Dollars in millions)


Mandatorily Redeemable Capital Stock. The following table provides the activity in mandatorily redeemable capital stock:
 
Three Months Ended September 30,

Nine Months Ended September 30,
 
2012
 
2011
 
2012
 
2011
Balance, beginning of period
$
115

 
$
385

 
$
286

 
$
529

Capital stock subject to mandatory redemption reclassified from equity during the period due to:
 
 
 
 
 
 
 
  Attainment of nonmember status
6

 
32

 
87

 
69

  Withdrawal

 

 
1

 
1

Repurchase/redemption of mandatorily redeemable capital stock
(79
)
 
(85
)
 
(303
)
 
(257
)
Capital stock no longer subject to redemption due to the transfer of stock from a nonmember to a member

 
(13
)
 
(29
)
 
(23
)
Balance, end of period
$
42


$
319


$
42


$
319


The following table shows the amount of mandatorily redeemable capital stock by year of redemption. The year of redemption in the table is the later of the end of the five-year redemption period, or with respect to activity-based stock, the later of the expiration of the five-year redemption period or the activity’s maturity date.
 
 
As of September 30, 2012
 
As of December 31, 2011
Due in one year or less
$

 
$
4

Due after one year through two years
4

 
8

Due after two years through three years
5

 
52

Due after three years through four years
2

 
122

Due after four years through five years
31

 
99

Due after five years

 
1

Total
$
42

 
$
286


Note 10—Accumulated Other Comprehensive Loss
Components comprising accumulated other comprehensive loss were as follows:
 
 
Pension and
Postretirement
Benefits
 
Noncredit Portion
of Other-than-
temporary
Impairment  Losses
on Available-for-
sale Securities
 
Total  Accumulated
Other
Comprehensive
Loss
Balance, December 31, 2010
$
(10
)
 
$
(392
)
 
$
(402
)
Current period other comprehensive income

 
85

 
85

Balance, September 30, 2011
$
(10
)
 
$
(307
)
 
$
(317
)
Balance, December 31, 2011
$
(13
)
 
$
(398
)
 
$
(411
)
Current period other comprehensive income
1

 
313

 
314

Balance, September 30, 2012