FHLBank Atlanta 1 1 Federal Home Loan Bank of Atlanta June 19, 2013 Joel Brockmann Rental Production Manager Community Investment Services

FHLBank Atlanta FHLBanks Perform Critical Function Cooperative, regional structure of FHLBanks helps reduce risk; increases responsiveness to shareholders FHLBanks meet liquidity and risk management needs of financial institutions of all sizes Via our shareholders, provide essential “equity-like” funding for locally based affordable housing and community development 2

FHLBank Atlanta Like every “dividend,” predicated upon earnings “Equity-like” capital for real estate transactions Direct & indirect benefits to shareholders, developers, homebuyers, tenants, and the community Unique Offering to Shareholder 3 FHLBank Products Community Dividend Earnings 10 percent =

FHLBank Atlanta Growing communities create demand for additional financing FHLBank Atlanta provides “equity-like” funding enabling shareholders to make transactions viable and attract new customers Funds are invested in community- based transactions generating successful lending opportunities FHLBank Atlanta Shareholder Community Shareholder originations create demand for advances Benefit Viable lending; new customers 4 Benefit New and Rehabbed Housing, Growing Local Tax Base; Job Creation Connecting the Dots

FHLBank Atlanta Economic Development Program AHP Competitive Program AHP Set-aside Program Community Investment Program $425 Million competitive funding to create over 70,000 rental and homeownership opportunities for moderate-, low- and very low-income households since AHP Competitive Leverage Ratio – 1:14 $107 Million funded through AHP Set-aside products and supporting more than 16,490 units since AHP Set-aside Leverage Ratio – 1:17 $6.3 Billion low-cost CICA advances supporting community economic initiatives and affordable housing development. Scale and Impact 5 *As of 12/31/2012

FHLBank Atlanta 6 Products Responsive to Market Affordable Housing Program (AHP) – AHP Competitive – rental and ownership Rental or Ownership New construction or rehabilitation Single-family or multi-family Mixed-use Acquisition/owner-occupied – AHP Set-aside – ownership only First-time Homebuyer Product (FHP) Community Stability Product (CSP) Foreclosure Recovery Product (FRP) Energy Efficiency/Weatherization Rehabilitation Product (EWP) Accessibility Rehabilitation Product (ARP) Veterans Products Community Investment Program (CIP)/Economic Development Program (EDP) –Discounted advance products for residential or economic development projects Commercial Opportunities Single-Family Mortgage Opportunities Commercial Opportunities

FHLBank Atlanta 7 Rental transactions Types Low-Income housing tax credit (LIHTC) Non-LIHTC multi-family Mixed-Use Reduces project debt service Which thereby permits a reduction in project rents to enable affordability Use of Funds Acquisition Rehabilitation New Construction and/ or Permanent funding Supportive Housing transactions Social service residential facilities AHP Competitive Product - Rental

FHLBank Atlanta Mixed Use/Housing Community Multi-family Rehab and New Construction Elgin, IL, 55 units AHP MemberOther Sources Acquisition$2,400,000 Construction$11,592,000$1,000,000$750,000$9,842,000 Soft Costs$1,623,000 Other Costs$1,801,000 Total Development Budget$15,016,000$1,000,000$750,000$13,266,000 Total Member Debt – First Mortgage$750,000 Member Loan-to-value (LTV)/cost4.9% AHP Competitive$1,000,000 Total Member Debt if AHP converted to Debt$1,750,000 Member LTV/cost if AHP converted to Debt11.65% DCR1.80 DCR if AHP converted to debt (7.5% for 15 years) “AHP has the ability to fill funding gaps.” – FHLBank Atlanta Member

FHLBank Atlanta Mixed Use, Retail/Housing for Homeless Multi-family Rehab and New Construction Mobile, AL, 100 units AHP MemberOther Sources Acquisition$450,000 Construction$2,538,000$225,000$650,000$1,663,000 Soft Costs$200,000 Other Costs$62,000 Total Development Budget$3,250,000$225,000$650,000$2,375,000 Total Member Debt – First Mortgage$650,000 Member Loan-to-value (LTV)/cost20.0% AHP Competitive$225,000 Total Member Debt if AHP converted to Debt$875,000 Member LTV/cost if AHP converted to Debt26.9% DCR1.35 DCR if AHP converted to debt (7.5% for 15 years)

FHLBank Atlanta Difficult to Develop/Critical Deals AHP Member Other Federal, State and Local Sources Acquisition$375,000 $0 Construction$692,343$400,000$292,343 Soft Costs$86,864 Other Costs$28,100 Total Development Budget$1,182,307$400,000$375,000$407,307 Total Member Debt – First Mortgage$375,000 Member Loan-to-value (LTV)/cost32% AHP Competitive$400,000 Total Member Debt if AHP converted to Debt$775,000 Member LTV/cost if AHP converted to Debt66% DCR1.40 DCR if AHP converted to debt (7.5% for 15 years) Multi-family Rehab Ridgecrest, NC, 50 units Housing for women with chronic substance abuse problems

FHLBank Atlanta 11 Ownership transactions Types Ownership new construction Acquisition / rehab Owner-occupied rehab Downpayment assistance Use of Funds Acquisition Rehabilitation New Construction and/ or Permanent funding AHP Competitive Product - Ownership 11

FHLBank Atlanta Value and Impact to You as a Business Developer Enables extension of credit Reduces loan risk Compatible with public or private debt and equity Equity for difficult to develop/critical deals Magnet to create new relationships 12

FHLBank Atlanta Value and Impact to Member Financial Institutions Business Opportunities Commercial / construction loans First mortgage origination Reduces loan risk Public perception CRA and compliance friendly Stimulates real estate activity and economic development 13

FHLBank Atlanta Continental National Bank, Miami, FL Little Havana Alliance –Using products to partner with the Little Havana Alliance to rehab homes in targeted neighborhoods to support their CRA objectives Old Florida National Bank, Longwood, FL non-performing 48-unit apartment complex, –Leveraged AHP funds for a non-performing 48-unit apartment complex, allowing Old Florida National Bank to reposition the project, creating a new business relationship by making a construction loan and getting CRA credit for the project “ This is a great program and is getting us a lot of CRA credit.” Thomas Berrell, Senior Vice President, Old Florida National Bank Dade County Federal Credit Union, Miami, FL Miami/Dade Community Development Department –Using AHP products to establish new relationships with the Miami/Dade Community Development Department 14

FHLBank Atlanta Stimulates Real Estate Activity Housing 15 *Beyond Units: Economic Benefits of the Federal Home Loan Bank’s Affordable Housing Program Additional $8.3 Billion local economic Impact* AHP Bank funds circulate through the economy of your local communities multiple times Tax Revenue $932 Million* Local Development $4.8 Billion* 46,000 Jobs*

16 FHLBank Atlanta The Community Dividend at Work Foreclosure Recovery Garcia Family Wingate, NC AHP Investment $15,000 Sales Price $82,000 Affordable Housing Williams Square Apartments Durham, NC AHP Investment $160,000 Total Development Cost $2,218,300 Affordable Housing Egret Pointe Leland, NC AHP Investment $576,000 Total Development Cost $7,250,001 Community Stability Phillips Family Hickory, NC AHP Investment $5,000 Sales Price $70,900 Affordable Housing The Landings at Winmore Carrboro, NC AHP Investment $ 250,000 Total Development Cost $8,127, Affordable Housing Project New Hope Winston-Salem, NC AHP Investment $150,000 Total Development Cost $1,499,021