1. FHLBank Atlanta 1 1 Federal Home Loan Bank of Atlanta Virginia Housing Credit Conference September 5, 2013 Joel Brockmann Rental Production Manager Community Investment Services

2. FHLBank Atlanta FHLBank Atlanta Overview Community Investment Services (CIS) –Overview –Product and Services –Connecting the Dots: Value and Benefits What Can We Do To Assist You? Our Discussion Today 2

3. 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 3

4. 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 4 FHLBank Products Community Dividend Earnings 10 percent =

5. 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 5 Benefit New and Rehabbed Housing, Growing Local Tax Base; Job Creation Connecting the Dots

6. FHLBank Atlanta Economic Development Program AHP Competitive Program AHP Set-aside Program Community Investment Program $441 Million competitive funding to create over 73,000 rental and homeownership opportunities for moderate-, low- and very low-income households since 1990. AHP Competitive Leverage Ratio – 1:15 $121 Million funded through AHP Set-aside products and supporting more than 18,000 units since 1997. AHP Set-aside Leverage Ratio – 1:18 $6.5 Billion of low-cost CICA advances supporting community economic initiatives and affordable housing development. Scale and Impact of our Shareholder Leveraging of AHP 6 *As of 7/31/13

7. FHLBank Atlanta 7 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

8. FHLBank Atlanta 8 Funding to create rental and homeownership opportunities for moderate-, low- and very-low income households Maximum $500,000 per project Competitive Application Process (1 round per year) Beneficiaries Residents at or below 80% of Area Median Income (AMI) Uses: New construction/rehabilitation Single-family/multi-family Acquisition/Owner-occupied rehabilitation AHP Competitive Product - Rental 8

9. FHLBank Atlanta Multi-family Purchase and Rehabilitation Washington, DC, 43 units Housing for homeless veterans AHPShareholderVA Acquisition$850,000$450,000$400,000 Construction$500,000$50,000$450,000 Soft Costs Other Costs$83,000 Total Development Budget$1,433,000$500,000$533,000$400,000 Total Shareholder Debt – First Mortgage$533,000 Shareholder Loan-to-value (LTV)/cost37.2% AHP Competitive$500,000 Total Shareholder Debt if AHP converted to Debt $1,033,000 Shareholder LTV/cost if AHP converted to Debt72.1% DCR1.15 DCR if AHP converted to debt (7.5% for 15 years) 0.67 9 “AHP has the ability to fill funding gaps.” – FHLBank Atlanta Shareholder AHP Competitive Product – Rental Example

10. FHLBank Atlanta Multifamily Rental Multi-family Acquisition/Rehabilitation Newport News City, VA, 80 units AHP MemberOther Sources Acquisition$1,350,000$950,000$400,000 Construction$6,579.724$714,000$950,000$4,915,724 Soft Costs$1,380,734 Other Costs$1,914,619 Total Development Budget$11,225,077$714,000$1,900,000$8,611,077 Total Member Debt – First Mortgage$1,900,000 Member Loan-to-value (LTV)/cost16.9% AHP Competitive$714,000 Total Member Debt if AHP converted to Debt$2,614,000 Member LTV/cost if AHP converted to Debt23.3% DCR1.36 DCR if AHP converted to debt (7.5% for 15 years).91 10

11. 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

12. 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

13. FHLBank Atlanta Stimulates Real Estate Activity Housing 13 *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*

14. FHLBank Atlanta Value and Impact to Shareholder 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 14

15. FHLBank Atlanta 15 Village Bank, Richmond, VA Virginia Success Stories Leverages AHP to assist first time homebuyers

16. FHLBank Atlanta 16 Virginia Success Stories Union First Market Bank, Ruther Glen, VA –“The Federal Home Loan Bank has help realized the dream of persons with disabilities gaining access to affordable and accessible housing in King George County. We could not have done it without you!” - Fronce Wardlaw, Project FAITH, Inc. Virginia Heritage, Vienna, VA “We are a big fan of the Federal Home Loan Bank of Atlanta. They were critical in helping us establish our mortgage operation. We see the strategic marketing advantage of using AHP programs. We just got done with a Fair Lending review with our regulator who was very pleased with Virginia Heritage Bank’s first time homebuyer activity.” - Richard Hutchison, Chief Mortgage Officer, Virginia Heritage Bank

17. FHLBank Atlanta Just Announced! Virginia Winning Projects in 2013 Virginia Projects were awarded $2,886,789 in affordable housing funding for the 2013 round – 447 rental units funded –Leveraging $55,331,371 in total development - 19:1 leveraging Armstrong Place, Lynchburg, VA –Member: Community Capital Bank of Virginia –Sponsor: Rush Lifetime Homes –AHP Amount: $195,477 for 27 rental units –Total Development Cost: $6,232,771 –(28) 1- and 2-bedroom affordable units for special needs residents Pine Ridge Apartments, Louisa VA –Member: EagleBank –Sponsor: REBJ, Inc. with Telamon Corporation –AHP Amount: $265,000 for 27 rental units –Total Development Cost: $2,680,171 –Preservation and rehab of two-story garden style buildings 17

18. FHLBank Atlanta Just Announced! Virginia Winning Projects in 2013 Lovingston Ridge, Lovinston, VA –Member: Branch Banking and Trust Company –Sponsor: Southeastern Housing Preservation, Inc. –AHP Amount: $250,000 for 64 rental units –Total Development Cost: $5,491,191 –Acquisition and rehabilitation of 64 units for low- and very-low income residents Crescent Square, Virginia Beach, VA –Member: Branch Banking and Trust Company –Sponsor: Virginia Supportive Housing –AHP Amount: $500,000 for 80 rental units –Total Development Cost: $10,216,352 –Mixed-income community with support services for homeless and low-income residents 18

19. FHLBank Atlanta Just Announced! Virginia Winning Projects in 2013 New River Gardens II, Radford, VA –Member: Branch Banking and Trust Company –Sponsor: Southeastern Housing Preservation, Inc. –AHP Amount: $346,312 for 44 rental units –Total Development Cost: $3,912,392 –Acquisition and rehabilitation for units targeted to very-low income families Edenbrook Park, Crozet, VA –Member: Bank of America, National Association –Sponsor: Humanities Foundation, Inc. –AHP Amount: $500,000 for 84 units –Total Development Cost: $11,765,882 –84 homes targeted to low- and moderate-income families 19

20. FHLBank Atlanta Just Announced! Virginia Winning Projects in 2013 Puddledock Place, Prince George, VA –Member: Bank of America, National Association –Sponsor: Humanities Foundation, Inc. –AHP Amount: $500,000 for 84 units –Total Development Cost: $11,600,873 –Acquisition of 84 homes in five buildings with a new community building Hillside Apartments, Pearisburg, VA –Member: Community Capital Bank of Virginia –Sponsor: Pax-Edwards, LLC with Green Trust Alliance –AHP Amount: $330,000 for 36 rental units –Total Development Cost: $3,431,739 –Acquisition and rehabilitation of 37 1-, 2-, and 3-bedroom units 20

21. FHLBank Atlanta What’s Next for AHP Competitive New Veterans Housing category 5 points for projects that reserve 10% of the units for Veterans 2014 AHP Competitive Round Schedule Round Opens January 14 Applications Due February 13 Award Announcements by early June 21

22. FHLBank Atlanta What’s Next for AHP Competitive (cont.) 3-Year Schedule 22

23. FHLBank Atlanta Affordable Housing Christopher Place Academy Baltimore, MD AHP Investment $500,000 Total Development Cost $4,303,020 23 FHLBank Atlanta The Community Dividend at Work Affordable Housing Boaz and Ruth Homes I Richmond, VA AHP Investment $190,000 Total Development Cost $1,420,000 Foreclosure Recovery Khella Family Midlothian, VA AHP Investment $12,000 Sales Price $170,000 23 Affordable Housing Woods at Yorktown Yorktown, VA AHP Investment $354,000 Total Development Cost $7,203,459 Energy Weatherization Lamas Family Mc Gaheysville, VA AHP Investment $11,331 Hard Cost $9,443 Soft Cost $1,888 Affordable Housing Crispus Attucks Apartments Exmore, VA AHP Investment $110,000 Total Development Cost $3,998,016