10-Q 1 fhlb-atlq32013.htm 10-Q FHLB-ATL Q3 2013
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, 2013
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, 2013 was 46,436,472.



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, 2013
 
As of December 31, 2012
Assets
 
 
 
Cash and due from banks
$
3,476

 
$
4,083

Interest-bearing deposits (including deposits with another FHLBank of $1 as of September 30, 2013 and December 31, 2012)
1,007

 
1,005

Securities purchased under agreements to resell
1,000

 
250

Federal funds sold
2,995

 
7,235

Trading securities (includes another FHLBank’s bond of $68 and $77 as of September 30, 2013 and December 31, 2012, respectively)
2,046

 
2,370

Available-for-sale securities
2,398

 
2,676

Held-to-maturity securities (fair value of $19,549 and $17,124 as of September 30, 2013 and December 31, 2012, respectively)
19,545

 
16,918

Mortgage loans held for portfolio, net of allowance for credit losses on mortgage loans of $11 as of September 30, 2013 and December 31, 2012.
972

 
1,244

Advances
78,193

 
87,503

Accrued interest receivable
215

 
240

Premises and equipment, net
29

 
32

Derivative assets
41

 
13

Other assets
151

 
136

Total assets
$
112,068

 
$
123,705

Liabilities
 
 
 
Interest-bearing deposits
$
1,890

 
$
2,094

Consolidated obligations, net:
 
 
 
Discount notes
16,282

 
31,737

Bonds
87,139

 
82,947

Total consolidated obligations, net
103,421

 
114,684

Mandatorily redeemable capital stock
24

 
40

Accrued interest payable
267

 
229

Affordable Housing Program payable
72

 
80

Derivative liabilities
195

 
158

Other liabilities
186

 
145

Total liabilities
106,055

 
117,430

Commitments and contingencies (Note 13)

 

Capital
 
 
 
Capital stock Class B putable ($100 par value) issued and outstanding shares:
 
 
 
Subclass B1 issued and outstanding shares: 9 and 12 as of September 30, 2013 and December 31, 2012, respectively
944

 
1,160

Subclass B2 issued and outstanding shares: 34 and 37 as of September 30, 2013 and December 31, 2012, respectively
3,407

 
3,738

Total capital stock Class B putable
4,351

 
4,898

Retained earnings:
 
 
 
Restricted
119

 
73

Unrestricted
1,460

 
1,362

Total retained earnings
1,579

 
1,435

Accumulated other comprehensive income (loss)
83

 
(58
)
Total capital
6,013

 
6,275

Total liabilities and capital
$
112,068

 
$
123,705

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

3


FEDERAL HOME LOAN BANK OF ATLANTA
STATEMENTS OF INCOME
(Unaudited)
(In millions)
 
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Interest income
 
 
 
 
 
 
 
Advances
$
54

 
$
74

 
$
178

 
$
216

Prepayment fees on advances, net
1

 
1

 
2

 
6

Interest-bearing deposits
1

 
2

 
4

 
5

Securities purchased under agreements to resell
1

 

 
1

 

Federal funds sold
1

 
4

 
7

 
14

Trading securities
26

 
28

 
79

 
90

Available-for-sale securities
33

 
40

 
98

 
125

Held-to-maturity securities
65

 
71

 
188

 
232

Mortgage loans held for portfolio
14

 
18

 
47

 
59

Total interest income
196

 
238

 
604

 
747

Interest expense
 
 
 
 
 
 
 
Consolidated obligations:
 
 
 
 
 
 
 
 Discount notes
5

 
6

 
19

 
15

 Bonds
104

 
140

 
325

 
449

Deposits

 

 

 
1

Mandatorily redeemable capital stock
1

 
1

 
1

 
3

Total interest expense
110

 
147

 
345

 
468

Net interest income
86

 
91

 
259

 
279

Provision for credit losses
1

 
1

 
4

 
4

Net interest income after provision for credit losses
85

 
90

 
255

 
275

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

 

 
(1
)
 

Net amount of impairment losses (reclassified from) recorded in other comprehensive income

 
(1
)
 
1

 
(16
)
Net impairment losses recognized in earnings

 
(1
)
 

 
(16
)
Net losses on trading securities
(15
)
 
(9
)
 
(79
)
 
(42
)
Net gains on derivatives and hedging activities
34

 
30

 
151

 
83

Letters of credit fees
4

 
5

 
14

 
14

Other
2

 
(1
)
 
4

 
2

Total noninterest income
25

 
24

 
90

 
41

Noninterest expense
 
 
 
 
 
 
 
Compensation and benefits
16

 
15

 
49

 
46

Other operating expenses
11

 
11

 
32

 
29

Finance Agency
2

 
2

 
6

 
8

Office of Finance
2

 
2

 
5

 
4

Total noninterest expense
31

 
30

 
92

 
87

Income before assessments
79

 
84

 
253

 
229

Affordable Housing Program assessments
8

 
8

 
25

 
23

Net income
$
71

 
$
76

 
$
228

 
$
206


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

4


FEDERAL HOME LOAN BANK OF ATLANTA
STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(In millions)
 
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Net income
$
71

 
$
76

 
$
228

 
$
206

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

 

 
(1
)
 

Net change in fair value on other-than-temporary impairment available-for-sale securities
16

 
188

 
141

 
297

Reclassification of noncredit portion of impairment losses included in net income

 
1

 

 
16

Net noncredit portion of other-than-temporary impairment losses on available-for-sale securities
16

 
189

 
140

 
313

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

 

 
(1
)
 

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

 

 
1

 

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

 

 

 

Pension and postretirement benefits:
 
 
 
 
 
 
 
   Total other comprehensive income

 

 
1

 
1

Total other comprehensive income
16

 
189

 
141

 
314

Total comprehensive income
$
87

 
$
265

 
$
369

 
$
520


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

5


FEDERAL HOME LOAN BANK OF ATLANTA
STATEMENTS OF CAPITAL
(Unaudited)
(In millions)
 
 
Capital Stock Class B Putable
 
Retained Earnings
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Total Capital    
 
Shares        
 
Par Value
 
Restricted    
 
Unrestricted    
 
Total        
 
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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, December 31, 2012
49

 
$
4,898

 
$
73

 
$
1,362

 
$
1,435

 
$
(58
)
 
$
6,275

Issuance of capital stock
34

 
3,427

 

 

 

 

 
3,427

Repurchase/redemption of capital stock
(40
)
 
(3,966
)
 

 

 

 

 
(3,966
)
Net shares reclassified to mandatorily redeemable capital stock

 
(8
)
 

 

 

 

 
(8
)
Comprehensive income

 

 
46

 
182

 
228

 
141

 
369

Cash dividends on capital stock

 

 

 
(84
)
 
(84
)
 

 
(84
)
Balance, September 30, 2013
43

 
$
4,351

 
$
119

 
$
1,460

 
$
1,579

 
$
83

 
$
6,013


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

6


FEDERAL HOME LOAN BANK OF ATLANTA
STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions)
 
 
For the Nine Months Ended September 30,
 
2013
 
2012
Operating activities
 
 
 
Net income
$
228

 
$
206

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
(64
)
 
(32
)
  Provision for credit losses
4

 
4

  Loss due to change in net fair value adjustment on derivative and hedging activities
7

 
160

  Net change in fair value adjustment on trading securities
79

 
42

  Net impairment losses recognized in earnings

 
16

  Gain on extinguishment of debt
(2
)
 

     Loss on disposal of fixed assets and capital software costs

 
1

Net change in:
 
 
 
  Accrued interest receivable
26

 
50

  Other assets
(14
)
 
14

  Affordable Housing Program payable
(13
)
 
(18
)
  Accrued interest payable
38

 
13

  Other liabilities
1

 
(13
)
  Total adjustments
62

 
237

Net cash provided by operating activities
290

 
443

Investing activities
 
 
 
Net change in:
 
 
 
  Interest-bearing deposits
968

 
280

  Securities purchased under agreements to resell
(750
)
 
(250
)
  Federal funds sold
4,240

 
5,616

Trading securities:
 
 
 
  Proceeds from maturities
251

 
690

Available-for-sale securities:
 
 
 
  Proceeds from maturities
435

 
479

Held-to-maturity securities:
 
 
 
  Net change in short-term
550

 
75

  Proceeds from maturities of long-term
2,897

 
3,259

  Purchases of long-term
(6,042
)
 
(3,382
)
Advances:
 
 
 
  Proceeds from principal collected
127,399

 
131,679

  Made
(119,605
)
 
(125,387
)
Mortgage loans:
 
 
 
  Proceeds from principal collected
228

 
283

     Proceeds from sale of held for sale
18

 

Proceeds from sale of foreclosed assets
19

 
10

Purchase of premise, equipment, and software
(2
)
 
(3
)
Net cash provided by investing activities
10,606

 
13,349

 
 
 
 

7


FEDERAL HOME LOAN BANK OF ATLANTA
STATEMENTS OF CASH FLOWS—(Continued)
(Unaudited)
(In millions)

 
For the Nine Months Ended September 30,
 
2013
 
2012
Financing activities
 
 
 
Net change in deposits
(199
)
 
(564
)
Net payments on derivatives containing a financing element
(121
)
 
(250
)
Proceeds from issuance of consolidated obligations:
 
 
 
 Discount notes
197,307

 
240,007

 Bonds
62,917

 
49,297

Payments for debt issuance costs
(6
)
 
(7
)
Payments for maturing and retiring consolidated obligations:
 
 
 
 Discount notes
(212,758
)
 
(242,574
)
 Bonds
(57,996
)
 
(58,465
)
Proceeds from issuance of capital stock
3,427

 
799

Payments for repurchase/redemption of capital stock
(3,966
)
 
(1,667
)
Payments for repurchase/redemption of mandatorily redeemable capital stock
(24
)
 
(303
)
Cash dividends paid
(84
)
 
(59
)
Net cash used in financing activities
(11,503
)
 
(13,786
)
Net (decrease) increase in cash and due from banks
(607
)
 
6

Cash and due from banks at beginning of the period
4,083

 
6

Cash and due from banks at end of the period
$
3,476

 
$
12

Supplemental disclosures of cash flow information:
 
 
 
 Cash paid for:
 
 
 
Interest
$
327

 
$
476

Affordable Housing Program assessments, net
$
34

 
$
40

 Noncash investing and financing activities:
 
 
 
Net shares reclassified to mandatorily redeemable capital stock
$
8

 
$
59

Held-to-maturity securities acquired with accrued liabilities
$
41

 
$

Transfer of held-to-maturity securities to available-for-sale securities
$
11

 
$
6

Transfers of mortgage loans to real estate owned
$
23

 
$
11


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

 


8


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, 2013, 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, 2012, which are contained in the Bank’s 2012 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 22, 2013 (Form 10-K).

The Bank has certain financial instruments, including derivative instruments and securities purchased under agreements to resell, that are subject to offset under master netting arrangements or by operation of law. The Bank has elected to offset its derivative asset and liability positions, as well as cash collateral received or pledged, when it has the legal right of offset under these master agreements. The Bank does not have any offsetting liabilities related to its securities purchased under agreements to resell for the periods presented.

The net exposure for these financial instruments can change on a daily basis; therefore, there may be a delay between the time this exposure change is identified and additional collateral is requested, and the time when this collateral is received or pledged. There may be a delay for excess collateral to be returned.  For derivative instruments, any excess cash collateral received or pledged is recognized as a derivative liability or derivative asset based on the terms of the individual master agreement between the Bank and its derivative counterparty.  Additional information regarding these agreements is provided in Note 11–Derivatives and Hedging Activities. Based on the fair value of the related securities held as collateral, the securities purchased under agreements to resell were fully collateralized for the periods presented. Additional information about the Bank's investments in securities purchased under agreements to resell is disclosed in Note 2–Summary of Significant Accounting Policies to the 2012 audited financial statements contained in the Bank's Form 10-K.

A description of all of the Bank’s significant accounting policies is included in Note 2–Summary of Significant Accounting Policies to the 2012 audited financial statements contained in the Bank’s Form 10-K. There have been no material changes to these policies as of September 30, 2013.

Note 2—Recently Issued and Adopted Accounting Guidance
Recently Issued Accounting Guidance

Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date.  In February 2013, the Financial Accounting Standards Board (FASB) issued guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date. This guidance requires an entity to measure these obligations as the sum of (1) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and (2) any additional amount the reporting entity expects to pay on behalf of its co-obligors. This guidance is effective for interim and annual periods beginning on or after December 15, 2013 and will be applied retrospectively to obligations with joint and several liabilities existing at the beginning of an entity's fiscal year of adoption. This guidance is not expected to materially affect the Bank's financial condition or results of operations. 
Recently Adopted Accounting Guidance

Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes.  In July 2013, the FASB issued guidance permitting the Fed Funds Effective Swap Rate (OIS) to be used as a U.S. benchmark interest rate for hedge accounting purposes, in addition to the U.S. Treasury Rate and the London Interbank Offered Rate (LIBOR).  This guidance was effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013.  The Bank adopted this guidance effective July 17, 2013. The adoption of

9

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


this guidance did not have any effect on the Bank's financial condition or results of operations, as the Bank has not designated any hedging relationships using OIS as the benchmark interest rate.

Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. In January 2013, the FASB issued amended guidance to improve the transparency of reporting reclassifications out of accumulated other comprehensive income. For public entities, this amended guidance was effective for reporting periods beginning after December 15, 2012. The Bank adopted this guidance effective January 1, 2013, which resulted in additional disclosures. The adoption of this guidance did not have any effect on the Bank's financial condition or results of operations.

Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. In January 2013, the FASB issued guidance to clarify the scope of transactions that are subject to previously issued guidance on disclosures about offsetting assets and liabilities. The disclosure guidance on offsetting assets and liabilities applies only to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with GAAP or subject to a master netting arrangement or similar agreement. This guidance was effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The Bank adopted and applied this guidance retrospectively effective January 1, 2013 for all comparative periods presented, which resulted in additional disclosures. The adoption of this guidance did not have any effect on the Bank's financial condition or results of operations.
Disclosures about Offsetting Assets and Liabilities. In December 2011, FASB issued disclosure requirements intended to help investors and other financial statement users 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 was effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The Bank adopted and applied this guidance retrospectively effective January 1, 2013 for all comparative periods presented, which resulted in additional disclosures. 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, 2013
 
As of December 31, 2012
Government-sponsored enterprises debt obligations
$
1,977

 
$
2,291

Another FHLBank’s bond (1)
68

 
77

State or local housing agency debt obligations
1

 
2

Total
$
2,046

 
$
2,370

 ____________
(1) 
The Federal Home Loan Bank of Chicago is the primary obligor of this consolidated obligation bond.
Net unrealized and realized losses on trading securities were as follows:
 
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Net unrealized losses on trading securities held at period end
$
(15
)
 
$
(9
)
 
$
(77
)
 
$
(35
)
Net unrealized/realized losses on trading securities sold or matured during the period

 

 
(2
)
 
(7
)
Net losses on trading securities
$
(15
)
 
$
(9
)
 
$
(79
)
 
$
(42
)

Note 4—Available-for-sale Securities
During the nine months ended September 30, 2013 and 2012, the Bank transferred certain private-label mortgaged-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

10

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


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.
The following table presents information on private-label MBS transferred. The amounts below represent the values as of the transfer date.
 
2013
 
2012
 
Amortized    
Cost
 
Other-than-temporary
Impairment
Recognized in
Accumulated Other
Comprehensive Income
 
Estimated
Fair Value
 
Amortized    
Cost
 
Other-than-temporary
Impairment
Recognized in
Accumulated Other
Comprehensive Income
 
Estimated
Fair Value
Transferred at March 31,
$
12

 
$
1

 
$
11

 
$
6

 
$

 
$
6

Transferred at June 30,

 

 

 

 

 

Transferred at September 30,

 

 

 

 

 

Total
$
12

 
$
1

 
$
11

 
$
6

 
$

 
$
6


Major Security Types. Available-for-sale securities were as follows:
 
 
As of September 30, 2013
 
Amortized    
Cost
 
Other-than-temporary
Impairment
Recognized in
Accumulated Other
Comprehensive Income
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated Fair Value
Private-label residential MBS
$
2,299

 
$
36

 
$
136

 
$
1

 
$
2,398


 
As of December 31, 2012
 
Amortized  
Cost
 
Other-than-temporary  
Impairment
Recognized in
Accumulated Other
Comprehensive Income
 
Gross
  Unrealized  
Gains
 
Gross
  Unrealized  
Losses
 
Estimated Fair Value  
Private-label residential MBS
$
2,717

 
$
120

 
$
79

 
$

 
$
2,676



11

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


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, 2013
 
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 residential MBS
8

 
$
340

 
$
5

 
11

 
$
365

 
$
32

 
19

 
$
705

 
$
37

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 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 residential MBS
3

 
$
154

 
$
1

 
26

 
$
1,240

 
$
119

 
29

 
$
1,394

 
$
120


A summary of available-for-sale MBS issued by members or affiliates of members follows:
 
 
As of September 30, 2013
 
Amortized  
Cost
 
Other-than-temporary  
Impairment
Recognized in
Other Accumulated
Comprehensive Income (Loss)
 
Gross
  Unrealized  
Gains
 
Gross
  Unrealized  
Losses
 
Estimated
  Fair  Value  
Bank of America Corporation, Charlotte, NC
$
1,465

 
$
35

 
$
86

 
$

 
$
1,516

 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2012
 
Amortized
Cost
 
Other-than-temporary
Impairment
Recognized in
Other Accumulated
Comprehensive Income (Loss)
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
Bank of America Corporation, Charlotte, NC
$
1,712

 
$
112

 
$
41

 
$

 
$
1,641



12

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


Note 5—Held-to-maturity Securities
Major Security Types. Held-to-maturity securities were as follows:
 
 
As of September 30, 2013
 
As of December 31, 2012
 
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
$

 
$

 
$

 
$

 
$
550

 
$

 
$

 
$
550

State or local housing agency debt obligations
95

 
1

 

 
96

 
106

 
2

 

 
108

Government-sponsored enterprises debt obligations
3,238

 
1

 
23

 
3,216

 
2,133

 

 

 
2,133

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. agency obligations-guaranteed residential
494

 
7

 

 
501

 
622

 
8

 

 
630

Government-sponsored enterprises residential
13,639

 
104

 
82

 
13,661

 
10,763

 
184

 
2

 
10,945

Private-label residential
2,079

 
15

 
19

 
2,075

 
2,744

 
36

 
22

 
2,758

Total
$
19,545

 
$
128

 
$
124

 
$
19,549

 
$
16,918

 
$
230

 
$
24

 
$
17,124


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, 2013
 
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
6

 
$
1,321

 
$
23

 

 
$

 
$

 
6

 
$
1,321

 
$
23

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government-sponsored enterprises residential
69

 
4,854

 
82

 

 

 

 
69

 
4,854

 
82

Private-label residential
37

 
770

 
10

 
18

 
252

 
9

 
55

 
1,022

 
19

Total
112

 
$
6,945

 
$
115

 
18

 
$
252

 
$
9

 
130

 
$
7,197

 
$
124

 
 
As of December 31, 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
3

 
$
750

 
$

 

 
$

 
$

 
3

 
$
750

 
$

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government-sponsored enterprises residential
1

 
154

 
1

 
1

 
13

 
1

 
2

 
167

 
2

Private-label residential

 

 

 
43

 
974

 
22

 
43

 
974

 
22

Total
4

 
$
904

 
$
1

 
44

 
$
987

 
$
23

 
48

 
$
1,891

 
$
24


13

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



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, 2013
 
As of December 31, 2012
 
Amortized
Cost
 
Estimated
Fair Value
 
Amortized
Cost
 
Estimated
Fair Value
Non-mortgage-backed securities:
 
 
 
 
 
 
 
Due in one year or less
$
730

 
$
730

 
$
1,092

 
$
1,093

Due after one year through five years
2,603

 
2,582

 
1,697

 
1,698

Total non-mortgage-backed securities
3,333

 
3,312

 
2,789

 
2,791

Mortgage-backed securities
16,212

 
16,237

 
14,129

 
14,333

Total
$
19,545

 
$
19,549

 
$
16,918

 
$
17,124


A summary of held-to-maturity MBS issued by members or affiliates of members follows:
 
 
As of September 30, 2013
 
As of December 31, 2012
 
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
$
675

 
$
5

 
$
7

 
$
673

 
$
896

 
$
11

 
$
8

 
$
899


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 dates. 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 their purchase dates. 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 dates.
Non-private-label MBS. The unrealized losses related to U.S. agency MBS are caused by interest rate changes and not credit quality. These securities are guaranteed by government agencies or government-sponsored enterprises (GSEs) and the Bank does not expect these securities to be settled at a price less than their 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

14

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


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, 2013.
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, 2013 included a short-term housing price forecast with projected changes ranging from a decrease of five percent to an increase of eight percent over the 12 month period beginning July 1, 2013.
For the vast majority of markets, the short-term housing price forecast has changes from a decrease of one percent to an increase of seven percent. Thereafter, home prices were projected to recover using one of five different recovery paths. The following table presents projected home price recovery ranges by months following the short-term housing price forecast as of September 30, 2013:
 
Months
 
Annualized Rates (%)    
1 to 6
 
0.00 to 3.00
7 to 12
 
1.00 to 4.00
13 to 18  
 
2.00 to 4.00
19 to 30  
 
2.00 to 5.00
31 to 54 
 
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 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. There were no securities for which an other-than-temporary-impairment was determined to have occurred during the three-month period ended September 30, 2013.


15

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 during the life of the securities for which a portion of the other-than-temporary loss was recognized in accumulated other comprehensive income:
 
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Balance, beginning of period
$
584

 
$
592

 
$
586

 
$
582

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

 
1

 

 
16

Increase in cash flows recognized over the remaining life of the securities
(4
)
 
(3
)
 
(6
)
 
(8
)
Balance, end of period
$
580

 
$
590

 
$
580

 
$
590


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.


16

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


Note 7—Advances
Redemption Terms. The Bank had advances outstanding, as summarized below.  
 
As of September 30, 2013
 
As of December 31, 2012
Overdrawn demand deposit accounts
$

 
$
2

Due in one year or less
38,267

 
41,482

Due after one year through two years
6,148

 
7,915

Due after two years through three years
4,866

 
4,735

Due after three years through four years
8,639

 
5,821

Due after four years through five years
6,377

 
8,758

Due after five years
11,783

 
15,157

Total par value
76,080

 
83,870

Discount on AHP(1)
(8
)
 
(11
)
Discount on EDGE(2) advances
(7
)
 
(8
)
Hedging adjustments
2,133

 
3,658

Deferred commitment fees
(5
)
 
(6
)
Total
$
78,193

 
$
87,503

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

The following table summarizes advances by year of contractual maturity or, for convertible advances, next conversion date:
 
 
As of September 30, 2013
 
As of December 31, 2012
Overdrawn demand deposit accounts
$

 
$
2

Due or convertible in one year or less
41,522

 
46,198

Due or convertible after one year through two years
6,337

 
7,886

Due or convertible after two years through three years
4,678

 
4,748

Due or convertible after three years through four years
7,184

 
5,368

Due or convertible after four years through five years
4,944

 
6,570

Due or convertible after five years
11,415

 
13,098

Total par value
$
76,080

 
$
83,870


Interest-rate Payment Terms. The following table details interest-rate payment terms for advances:
 
 
As of September 30, 2013
 
As of December 31, 2012
Fixed-rate:
 
 
 
 Due in one year or less
$
33,492

 
$
38,307

 Due after one year
29,915

 
33,425

Total fixed-rate
63,407

 
71,732

Variable-rate:
 
 
 
 Due in one year or less
4,775

 
3,177

 Due after one year
7,898

 
8,961

Total variable-rate
12,673

 
12,138

Total par value
$
76,080

 
$
83,870



17

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


Credit Risk. The Bank’s potential credit risk from advances is concentrated in commercial banks, thrifts, and credit unions and further is concentrated in certain larger borrowing relationships. As of September 30, 2013 and December 31, 2012, the concentration of the Bank’s advances was $54,980 and $62,488, respectively, to 10 member institutions, representing 72.3 percent and 74.5 percent, respectively, of total advances outstanding.
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, 2013 and December 31, 2012. No advance was past due as of September 30, 2013 and December 31, 2012.

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.
Interest-rate Payment Terms. The following table details the Bank’s consolidated obligation bonds by interest-rate payment type: 
 
As of September 30, 2013
 
As of December 31, 2012
Fixed-rate
$
67,446

 
$
76,212

Step up/down
7,796

 
4,419

Simple variable-rate
11,505

 
1,250

Variable-rate capped floater
45

 
20

Total par value
$
86,792

 
$
81,901


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, 2013
 
As of December 31, 2012
 
Amount
 
Weighted-
average
Interest Rate (%)    
 
Amount
 
Weighted-
average
Interest Rate (%)    
Due in one year or less
$
43,203

 
0.67
 
$
55,397

 
0.79
Due after one year through two years
11,427

 
0.44
 
7,587

 
2.08
Due after two years through three years
8,032

 
1.92
 
2,507

 
1.92
Due after three years through four years
7,528

 
2.51
 
3,344

 
4.25
Due after four years through five years
5,603

 
2.06
 
6,298

 
2.82
Due after five years
10,999

 
1.91
 
6,768

 
2.31
Total par value
86,792

 
1.16
 
81,901

 
1.36
Premiums
87

 
 
 
91

 
 
Discounts
(26
)
 
 
 
(34
)
 
 
Hedging adjustments
286

 
 
 
989

 
 
Total
$
87,139

 
 
 
$
82,947

 
 


18

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


The Bank’s consolidated obligation bonds outstanding by call feature:
 
 
As of September 30, 2013
 
As of December 31, 2012
Noncallable
$
64,594

 
$
71,880

Callable
22,198

 
10,021

Total par value
$
86,792

 
$
81,901


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, 2013
 
As of December 31, 2012
Due or callable in one year or less
$
62,535

 
$
62,540

Due or callable after one year through two years
10,527

 
6,550

Due or callable after two years through three years
4,150

 
2,136

Due or callable after three years through four years
6,123

 
3,024

Due or callable after four years through five years
2,207

 
6,028

Due or callable after five years
1,250

 
1,623

Total par value
$
86,792

 
$
81,901


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, 2013
$
16,282

 
$
16,285

 
0.08
As of December 31, 2012
$
31,737

 
$
31,745

 
0.12

Note 9—Capital and Mandatorily Redeemable Capital Stock
Capital. The Bank was in compliance with the Federal Housing Finance Agency's (Finance Agency) regulatory capital rules and requirements as shown in the following table:
 
 
As of September 30, 2013
 
As of December 31, 2012
 
Required    
 
Actual        
 
Required    
 
Actual        
Risk based capital
$
2,167

 
$
5,955

 
$
1,625

 
$
6,373

Total capital-to-assets ratio
4.00
%
 
5.31
%
 
4.00
%
 
5.15
%
Total regulatory capital (1)
$
4,483

 
$
5,955

 
$
4,948

 
$
6,373

Leverage ratio
5.00
%
 
7.97
%
 
5.00
%
 
7.73
%
Leverage capital
$
5,603

 
$
8,932

 
$
6,185

 
$
9,560

___________
(1) 
Mandatorily redeemable capital stock is considered capital for regulatory purposes, and “total regulatory capital” includes the Bank’s $24 and $40 in mandatorily redeemable capital stock as of September 30, 2013 and December 31, 2012, respectively.


19

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:

 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Balance, beginning of period
$
25

 
$
115

 
$
40

 
$
286

Capital stock subject to mandatory redemption reclassified from equity during the period due to:
 
 
 
 
 
 
 
  Attainment of non-member status
1

 
6

 
8

 
87

  Withdrawal

 

 

 
1

Repurchase/redemption of mandatorily redeemable capital stock
(2
)
 
(79
)
 
(24
)
 
(303
)
Capital stock no longer subject to redemption due to the transfer of stock from a non-member to a member

 

 

 
(29
)
Balance, end of period
$
24

 
$
42

 
$
24


$
42


The following table shows the amount of mandatorily redeemable capital stock by year of redemption. The year of redemption in the table is 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, 2013
 
As of December 31, 2012
Due in one year or less
$
5

 
$

Due after one year through two years
4

 
12

Due after two years through three years
8

 
9

Due after three years through four years
6

 
17

Due after four years through five years

 
1

Due after five years
1

 
1

Total
$
24

 
$
40



20

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


Note 10—Accumulated Other Comprehensive Income (Loss)
Components comprising accumulated other comprehensive income (loss) were as follows:
 
Pension and
Postretirement
Benefits
 
Noncredit Portion
of Other-than-
temporary
Impairment  Losses
on Available-for-
sale Securities
 
Noncredit Portion of Other-than-temporary Impairment Losses on Held-to-maturity Securities
 
Total  Accumulated
Other
Comprehensive
Income (Loss)
Balance, June 30, 2012
$
(12
)
 
$
(274
)
 
$

 
$
(286
)
Other comprehensive loss before reclassifications:
 
 
 
 
 
 
 
     Net change in fair value

 
188

 

 
188

Reclassification from other comprehensive loss to net income:
 
 
 
 
 
 
 
     Noncredit other-than-temporary impairment losses

 
1

 

 
1

Net current period other comprehensive income

 
189

 

 
189

Balance, September 30, 2012
$
(12
)
 
$
(85
)
 
$

 
$
(97
)
Balance, June 30, 2013
$
(16
)
 
$
83

 
$

 
$
67

Other comprehensive loss before reclassifications:
 
 
 
 
 
 
 
     Net change in fair value

 
16

 

 
16

Net current period other comprehensive income

 
16

 

 
16

Balance, September 30, 2013
$
(16
)
 
$
99

 
$

 
$
83


 
Pension and
Postretirement
Benefits
 
Noncredit Portion
of Other-than-
temporary
Impairment  Losses
on Available-for-
sale Securities
 
Noncredit Portion of Other-than-temporary Impairment Losses on Held-to-maturity Securities
 
Total  Accumulated
Other
Comprehensive
Income (Loss)
Balance, December 31, 2011
$
(13
)
 
$
(398
)
 
$

 
$
(411
)
Other comprehensive loss before reclassifications:
 
 
 
 
 
 
 
     Net change in fair value

 
297

 

 
297

Reclassification from other comprehensive loss to net income:
 
 
 
 
 
 
 
     Noncredit other-than-temporary impairment losses

 
16

 

 
16

     Amortization of pension and postretirement(1)
1

 

 

 
1

Net current period other comprehensive income
1

 
313

 

 
314

Balance, September 30, 2012
$
(12
)
 
$
(85
)
 
$