Federal Home Loan Bank of New York Announces Second Quarter 2021 Operating Highlights

NEW YORK, July 29, 2021 / PRNewswire / – The Federal Home Loan Bank of New York (“FHLBNY”) today released its unaudited financial highlights for the quarter ended June 30th, 2021.

“The Federal Mortgage Bank of New York has the unique ability to expand or contract according to the needs of our members. In the second quarter of last year, we served as a reliable source of liquidity to meet the increased need for funding at the onset of the pandemic. Over the ensuing year, as funding needs diminished, we have remained a stable partner to our members and the communities we serve as we move towards recovery, ”said José R. González , President and CEO of FHLBNY. “At FHLBNY, we pride ourselves on our ability to continue to fulfill our mission in all operating environments.”

Highlights for the second quarter of 2021 include:

  • Net profit for the quarter was $ 74.7 million, a decrease in $ 62.8 million, or 46 percent, of the net income of $ 137.5 million for the second quarter of 2020. Net interest income for the quarter was $ 143.2 million, a decrease in $ 86.5 million, or 38 percent, of $ 229.7 million in the second quarter of last year. This decrease is mainly explained by a decrease in $ 38.3 billion in the average advance balances for the period of the previous year.
  • The return on average equity (“ROE”) for the quarter was 4.21% (annualized), compared to an ROE of 6.45% for the second quarter of 2020.
  • From June 30, 2021, the total assets were $ 120.4 billion, a decrease in $ 16.6 billion, or 12 percent, of the total assets of $ 137.0 billion at the 31st of December, 2020. As of June 30, 2021, advances have been $ 80.0 billion, a decrease in $ 12.1 billion, or 13 percent, of $ 92.1 billion at the 31st of December, 2020.
  • From June 30, 2021, the total capital was $ 6.8 billion, a decrease in $ 0.5 billion of the total capital of $ 7.3 billion at the 31st of December, 2020. The decrease in total capital is mainly explained by a decrease in the capital stock resulting from the decrease in advance balances during the period. FHLBNY retained earnings increased by $ 14.0 million at $ 1.9 billion from June 30, 2021, of which $ 1.1 billion were retained earnings and $ 0.8 billion were restricted retained earnings. AT June 30, 2021, the FHLBNY complied with its regulatory capital ratios.
  • The FHLBNY awarded $ 8.3 million of its second quarter 2021 profits for its affordable housing program.

FHLBNY currently plans to file its Form 10-Q for Q2 2021 with the United States Securities and Exchange Commission no later than August 11, 2021.

Federal Mortgage Bank of New York

Financial highlights

(Preliminary and unaudited)

(dollars in millions)






SELECTED BALANCE SHEET ITEMS






June 30th


The 31st of December,



2021


2020







Advances (principal)

$ 79,985


$ 92,067


Mortgages held for the portfolio (principal)

2,526


2,900


Total investments

37,553


39,748


Total assets

120,449


136,996







Consolidated bonds

111,486


127,375


Share capital

4,867


5 367


Total retained earnings

1,923


1,909


AOCI

30


-20


Total capital

$ 6,820


$ 7,256







Capital / asset ratio (GAAP)

5.66

%

5.30

%

Capital / asset ratio (regulatory)

5.64

%

5.31

%






OPERATING RESULTS





















Quarter ended June 30



Six months ended June 30













2021


2020



2021

2020











Total interest income

$ 247.5


$ 502.3



$ 529.8


$ 1,242.4


Total interest charges

104.4


272.6



228.1


859.9


Net interest income

143.1


229.7



301.7


382.5


Provision (Return) for credit losses

-1.7


3.0



-3.0


3.2


Net interest income after provision for credit losses

144.8


226.7



304.7


379.3


Income (loss) other than interest

-9.6


-22.8



-42.2


-15.1


Non-interest charges

52.2


51.0



99.3


94.6


Affordable Housing Program










evaluations

8.3


15.3



16.3


27.0


Net revenue

$ 74.7


$ 137.6



$ 146.9


$ 242.6












Average return on equity

4.21

%

6.45

%


4.14

%

6.04

%

Return on average assets

0.24

%

0.32

%


0.23

%

0.29

%

Net interest margin

0.46

%

0.53

%


0.47

%

0.47

%











Federal Mortgage Bank of New York
The Federal Mortgage Bank of New York is a congressionally licensed wholesale bank. It is part of the Federal Home Loan Bank System, a national wholesale banking network of 11 regional banks owned by shareholders. From June 30, 2021, the FHLBNY serves 321 financial institutions in New Jersey, New York, Porto Rico, and the US Virgin Islands. The Federal Home Loan Banks support the efforts of local members to help provide financing to American homebuyers.

Safe Harbor Declaration under the Private Securities Litigation Reform Act 1995
This report may contain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on our current expectations and speak only as of the date hereof. These statements may use forward-looking terms, such as “projected”, “expects”, “may” or their negatives or other variations on such terms. The Bank cautions that, by their nature, forward-looking statements involve risks or uncertainties and that actual results could differ materially from those expressed or implied in such forward-looking statements or could affect the extent to which an objective, projection , an estimate, or the prediction is made. These forward-looking statements involve risks and uncertainties, including, but not limited to, the risk factors set forth in our annual reports on Form 10-K and our quarterly reports on Form 10-Q filed with the SEC, as well. as in rule adjustments or requirements, changes in interest rates, changes in projected business volumes, changes in prepayment speeds on mortgage assets, the cost of our funding, changes in our profile of members, the withdrawal of one or more important members, competitive pressures, changes in demand for our products and general economic conditions. Forward-looking statements speak only as of the date they are made, and we assume no obligation to publicly revise or update any forward-looking statements for any reason.

CONTACT: Brian finnegan
(212) 441-6877

SOURCE Federal Home Loan Bank of New York

Related links

http://www.fhlbny.com

Bernadine J. Perkins