Press Releases

April 28, 2011

Contact: Eric Amig - (212) 441-6807
Brian Finnegan - (212) 441-6877

FHLBNY Announces 1Q 2011 Operating Highlights

New York, NY – The Federal Home Loan Bank of New York ("Bank") today released its unaudited financial highlights as of and for the quarter ended March 31, 2011.

“Our solid and steady performance continued throughout the first quarter of 2011,” said Alfred A. DelliBovi, president and CEO of the Federal Home Loan Bank of New York. “We are proud to be a reliable source of funding for our members and the communities they serve.”

Highlights from the first quarter of 2011 include:

  • Net income for the quarter was $71.0 million, and return on average equity (“ROE”) was 5.74 percent. These figures compare to net income of $53.6 million and ROE of 3.99 percent for the first quarter of 2010. First quarter net income benefited from member-initiated prepayments which generated $42.7 million in prepayment fees, and contributed $39.3 million in derivative and hedging gains from termination of hedges associated with the prepayments. In addition, two significant charges to net income were executed to benefit and protect future earnings. First, the Bank absorbed $51.7 million in charges when Bank management made tactical changes to its funding strategy and extinguished (or transferred) certain high-coupon debt to protect its future interest margin. Second, the Bank expensed $24.0 million to eliminate the funding shortfall in its defined benefit pension plan in order to help reduce the likelihood of higher expenses in future periods and to also avoid certain restrictions from being imposed on plan participants.
  • As of March 31, 2011, total assets were $96.9 billion, a decrease of $3.3 billion, or 3.3 percent, from total assets of $100.2 billion as of December 31, 2010. The decrease in total assets from year-end 2010 was primarily a result of a decline in advances of $5.7 billion, or 7.0 percent, from $81.2 billion as of December 31, 2010, to $75.5 billion as of March 31, 2011. This decline in member demand for advances was driven by economic factors such as continued growth in members’ deposit bases and the continued availability of government funding and other liquidity options.
  • As of March 31, 2011, total capital was $4.9 billion, a decrease of $201 million, or 3.9 percent, from $5.1 billion as of December 31, 2010. The lower capital level was largely due to the decline in the amount of capital stock held by Bank members – a decline in turn attributable to the reduction in the level of member advances. In addition, the Bank’s unrestricted retained earnings increased during the quarter by $4.6 million to $716.7 million as of March 31, 2011. At March 31, 2011, the Bank met its regulatory capital-to-assets ratios and liquidity requirements.

The Bank currently expects to submit its Form 10-Q for the first quarter of 2011 to the U.S. Securities and Exchange Commission on or about May 13, 2011.

About the Federal Home Loan Bank of New York
The Federal Home Loan Bank of New York is a Congressionally chartered, wholesale Bank. It is part of the Federal Home Loan Bank System, a national wholesale banking network of 11 regional, stockholder-owned banks. As of September 30, 2018, the FHLBNY serves 326 financial institutions in New Jersey, New York, Puerto Rico, and the U.S. Virgin Islands. The Federal Home Loan Banks support the efforts of local members to help provide financing for America’s homebuyers.

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Safe Harbor Statement Under the Private Securities Litigation Reform Act of 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 upon 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 these terms. The Bank cautions that, by their nature, forward-looking statements involve risk or uncertainty and that actual results could differ materially from those expressed or implied in these forward-looking statements or could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties including, but not limited to, regulatory and accounting 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 membership profile, the withdrawal of one or more large members, competitive pressures, shifts in demand for our products, and general economic conditions. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

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