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

NEW YORK, 28 October 2021 / PRNewswire / – The Federal Home Loan Bank of New York (“FHLBNY”) today released its unaudited financial highlights for the quarter ended September 30, 2021.

“In the first nine months of the year, our members have continued to serve their clients and their communities as we move forward to recover from the pandemic,” said José R. González, President and CEO of the FHLBNY. “This recovery continues to be supported by the local lender and the Federal Home Loan Bank of New York proudly continues to be the stable and reliable partner of the local lender through New Jersey, New York, Porto Rico and the US Virgin Islands. “

Highlights for the third quarter of 2021 include:

  • Net profit for the quarter was $ 65.8 million, a decrease in $ 35.4 million, or 35.0 percent, of the net income of $ 101.2 million for the third quarter of 2020. Net interest income for the quarter was $ 128.2 million, a decrease in $ 52.6 million, or 29.1 percent, of $ 180.8 million in the third quarter of last year. This decrease is mainly explained by a decrease in $ 44.5 billion average balances of interest-bearing assets compared to the period of the previous financial year, including a decrease of $ 34.8 billion on average, advance balances as members’ financing needs remain lower, mainly due to high levels of deposits resulting from the large amount of cash made available through government stimulus measures.
  • The return on average equity (“ROE”) for the quarter was 3.95% (annualized), compared to an ROE of 5.04% for the third quarter of 2020.
  • From September 30, 2021, the total assets were $ 102.7 billion, a decrease in $ 34.3 billion, or 25.0 per cent, of the total assets of $ 137.0 billion at the 31st of December, 2020. As of September 30, 2021, advances have been $ 70.5 billion, a decrease in $ 21.6 billion, or 23.5 percent, of $ 92.1 billion at December 31, 2020.
  • From September 30, 2021, the total capital was $ 6.4 billion, a decrease in $ 0.9 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 in the quarter of $ 6.3 million at $ 1.9 billion from September 30, 2021, of which $ 1.1 billion was unrestricted retained earnings and $ 817 million was restricted retained earnings. AT September 30, 2021, the FHLBNY complied with its regulatory capital ratios and liquidity requirements.
  • The FHLBNY awarded $ 7.3 million of its third quarter 2021 profits for its affordable housing program.

The FHLBNY currently plans to file its Form 10-Q for the third quarter of 2021 with the United States Securities and Exchange Commission by November 12, 2021.

SELECTED BALANCE SHEET ITEMS






September 30


The 31st of December,



2021


2020







Advances

$ 70,548


$ 92,067


Mortgages held for the portfolio

2,418


2,900


Total investments

29,076


39,748


Total assets

102,677


136,996







Consolidated bonds

94 223


127,375


Share capital

4,447


5 367


Total retained earnings

1930


1,909


AOCI

34


-20


Total capital

$ 6,411


$ 7,256







Capital / asset ratio (GAAP)

6.24

%

5.30

%

Capital / asset ratio (regulatory)

6.21

%

5.31

%

OPERATING RESULTS



Quarter ended September 30



Nine months ended September 30













2021


2020



2021

2020











Total interest income

$ 227.4


$ 354.7



$ 757.2


$ 1,597.1


Total interest charges

99.2


173.9



327.3


1033.8


Net interest income

128.2


180.8



429.9


563.2


Provision (Return) for credit losses

-1.7


2.5



-4.6


5.7


Net interest income after provision for credit
loss

129.9


178.3



434.5


557.5


Income (loss) other than interest

-8.7


-14.3



-50.9


-29.4


Non-interest charges

48.1


51.5



147.3


146.1


Affordable Housing Program










evaluations

7.3


11.3



23.6


38.2


Net revenue

$ 65.8


$ 101.2



$ 212.7


$ 343.8












Average return on equity

3.95

%

5.04

%


4.07

%

5.71

%

Return on average assets

0.23

%

0.23

%


0.23

%

0.28

%

Net interest margin

0.45

%

0.46

%


0.46

%

0.46

%

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. As of September 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 mortgage profile, 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