New York, NY – The Federal Home Loan Bank of New York (“FHLBNY”) today released its unaudited financial highlights for the quarter ended June 30, 2021.
“The Federal Home Loan Bank of New York has the unique ability to expand or contract based on the needs of our members. In the second quarter of last year, we served as a reliable source of liquidity to meet the enhanced need for funding at the onset of the pandemic. In the year since, while funding needs have declined, we have remained a stable partner for our members and the communities we serve as we move towards recovery,” said José R. González, president, and CEO of the FHLBNY. “At the FHLBNY, we are proud of our ability to continue to meet our mission in all operating environments.”
Highlights from the second quarter of 2021 include:
- Net income for the quarter was $74.7 million, a decrease of $62.8 million, or 46 percent, from net income of $137.5 million for the second quarter of 2020. Net interest income for the quarter was $143.2 million, a decrease of $86.5 million, or 38 percent, from $229.7 million in the second quarter last year. This decrease was driven primarily by a decline of $38.3 billion in average advances balances from the prior-year period.
- Return on average equity (“ROE”) for the quarter was 4.21 percent (annualized), compared to ROE of 6.45 percent for the second quarter of 2020.
- As of June 30, 2021, total assets were $120.4 billion, a decrease of $16.6 billion, or 12 percent, from total assets of $137.0 billion at December 31, 2020. As of June 30, 2021, advances were $80.0 billion, a decrease of $12.1 billion, or 13 percent, from $92.1 billion at December 31, 2020.
- As of June 30, 2021, total capital was $6.8 billion, a decrease of $0.5 billion from total capital of $7.3 billion at December 31, 2020. The decrease in total capital was driven primarily by a decrease in capital stock resulting from lower advances balances during the period. The FHLBNY’s retained earnings increased by $14.0 million to $1.9 billion as of June 30, 2021, of which $1.1 billion were unrestricted retained earnings and $0.8 billion were restricted retained earnings. At June 30, 2021, the FHLBNY met its regulatory capital ratios.
- The FHLBNY allocated $8.3 million from its second-quarter 2021 earnings for its Affordable Housing Program.
The FHLBNY currently expects to file its Form 10-Q for the second quarter of 2021 with the U.S. Securities and Exchange Commission on or before August 11, 2021.
Federal Home Loan Bank of New York
Financial Highlights
(Preliminary and unaudited)
(Dollars in millions)
| SELECTED BALANCE SHEET ITEMS | ||||
| June 30, | December 31, | |||
| 2021 | 2020 | |||
| Advances (principal) | $ 79,985 | $ 92,067 | ||
| Mortgage loans held for portfolio (principal) | 2,526 | 2,900 | ||
| Total investments | 37,553 | 39,748 | ||
| Total assets | 120,449 | 136,996 | ||
| Consolidated Obligations | 111,486 | 127,375 | ||
| Capital stock | 4,867 | 5,367 | ||
| Total retained earnings | 1,923 | 1,909 | ||
| AOCI | 30 | -20 | ||
| Total capital | $ 6,820 | $ 7,256 | ||
| Capital-to-assets ratio (GAAP) | 5.66% | 5.30% | ||
| Capital-to-assets 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 expense | 104.4 | 272.6 | 228.1 | 859.9 | ||||
| Net interest income | 143.1 | 229.7 | 301.7 | 382.5 | ||||
| Provision (Reversal) for credit losses | -1.7 | 3.0 | -3.0 | 3.2 | ||||
| Net interest income after provision for credit loss | 144.8 | 226.7 | 304.7 | 379.3 | ||||
| Non-interest income (loss) | -9.6 | -22.8 | -42.2 | -15.1 | ||||
| Non-interest expense | 52.2 | 51.0 | 99.3 | 94.6 | ||||
| Affordable Housing Program | ||||||||
| assessments | 8.3 | 15.3 | 16.3 | 27.0 | ||||
| Net income | $ 74.7 | $ 137.6 | $ 146.9 | $ 242.6 | ||||
| Return on average 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% | ||||
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 June 30, 2021, the FHLBNY serves 321 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.