ATLANTA – The Federal Home Loan Bank of Atlanta reported Friday its exposure to Lehman Brothers Holdings pushed it into the red to the tune of $46.1 million for the third quarter.
The third quarter loss was caused by a $170.5 million reserve the Atlanta FHLB created for a credit loss on a receivable due from Lehman Brothers, which filed bankruptcy, and the recording of an other-than-temporary impairment loss of $87.3 million on private label mortgage-backed securities. The reserve for credit loss on the Lehman Brothers receivable represents 90% of the outstanding receivable, which is the Atlanta Bank’s best estimate of collectability.
For the first three quarters of the year the Atlanta FHLB reported $179.2 million in net income, down 44% from $322.2 million for the same period last year.
The $214 billion Atlanta FHLB has 1,200 members, 325 of which are credit unions.
