New York, NY – The Federal Home Loan Bank of New York (“FHLBNY”) today released its unaudited financial highlights for the quarter ended June 30, 2023.
“Through the first half of 2023, the Federal Home Loan Bank of New York has performed as designed, delivering liquidity on demand as needed by our members,” said José R. González, president and CEO of the FHLBNY. “Notably, towards the end of the first quarter, this need was significant, and we were there to answer the call. The Federal Home Loan Banks are built to expand and contract based on member need; as seamlessly as we were able to scale up our balance sheet in March 2023, so too were we able to manage the reduced advance demand we experienced in the second quarter, with our members having successfully navigated through the challenging period earlier in the year. Of course, the Federal Home Loan Banks do not exist to serve our members only in times of stress. America’s financial institutions incorporate access to Federal Home Loan Bank liquidity as part of their core funding strategies in all economic environments, and we were proud to close the second quarter with more than $108 billion in funding flowing through our members to consumers and into communities across our region. For more than 90 years, the Federal Home Loan Bank System has served as a reliable and uninterrupted source of funding for our broad and diverse membership. Through the first half of 2023, we have proven once again that the Federal Home Loan Bank model is one that works.”
Highlights from the second quarter of 2023 include:
- Net income for the quarter was $215.8 million, an increase of $139.5 million, or 182.7%, from net income of $76.3 million for the second quarter of 2022. Net interest income for the quarter was $274.7 million, an increase of $128.0 million, or 87.3%, from $146.7 million in the second quarter of last year. This increase was driven primarily by an increase of 377 basis points in yields on average earning assets and an increase of $47.7 billion in average advances balances from the prior year period. Non-interest income increased by $33.2 million compared with the second quarter of 2022, driven by net unrealized gains on trading securities held for liquidity purposes, derivatives and hedges.
- Return on average equity (“ROE”) for the quarter was 9.84% (annualized), compared to ROE of 4.71% for the second quarter of 2022.
- As of June 30, 2023, total assets were $171.4 billion, an increase of $14.0 billion, or 8.9%, from total assets of $157.4 billion at December 31, 2022. As of June 30, 2023, advances were $108.6 billion, a decrease of $6.7 billion, or 5.8%, from $115.3 billion at December 31, 2022. During the second quarter, advances balances decreased by $17.7 billion, or 14.0%, from $126.3 billion at March 31, 2023. Liquidity assets increased $18.0 billion to $40.6 billion at June 30, 2023 from $22.6 billion at December 31, 2022 as we increased our liquidity position to meet potential member advances demand.
- As of June 30, 2023, total capital was $8.5 billion, an increase of $0.2 billion from total capital of $8.3 billion at December 31, 2022. The FHLBNY’s retained earnings increased by $0.2 billion to $2.3 billion as of June 30, 2023, of which $1.3 billion were unrestricted retained earnings and $1.0 billion were restricted retained earnings. At June 30, 2023, the FHLBNY continued to meet its regulatory capital requirements.
- The FHLBNY allocated $24.0 million from its second quarter 2023 earnings for its Affordable Housing Program.
The FHLBNY expects to file its Form 10-Q for the second quarter of 2023 with the U.S. Securities and Exchange Commission on or before August 10, 2023.
| SELECTED BALANCE SHEET ITEMS | |||||
| June 30, | December 31, | ||||
| 2023 | 2022 | Change | |||
| Advances | $108,573 | $115,293 | $(6,720) | ||
| Mortgage loans held for portfolio | 2,139 | 2,107 | 32 | ||
| Mortgage-backed securities | 17,902 | 15,157 | 2,745 | ||
| Liquidity assets | 40,585 | 22,606 | 17,979 | ||
| Total assets | 171,408 | 157,391 | 14,017 | ||
| Consolidated obligations | 158,961 | 147,291 | 11,670 | ||
| Capital stock | 6,362 | 6,387 | (25) | ||
| Unrestricted retained earnings | 1,288 | 1,185 | 103 | ||
| Restricted retained earnings | 994 | 911 | 83 | ||
| Accumulated other comprehensive income (Loss) | (126) | (136) | 10 | ||
| Total capital | $8,518 | $8,347 | $171 | ||
| Capital-to-assets ratio (GAAP) | 4.97% | 5.30% | |||
| Capital-to-assets ratio (Regulatory) | 5.05% | 5.39% | |||
| OPERATING RESULTS (dollars in millions) | |||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
| 2023 | 2022 | Change | 2023 | 2022 | Change | ||||||
| Total interest income | $2,351.7 | $386.3 | $1,965.4 | $4,233.4 | $608.7 | $3,624.7 | |||||
| Total interest expense | 2,076.9 | 239.6 | 1,837.3 | 3,728.9 | 339.9 | 3,389.0 | |||||
| Net interest income | 274.8 | 146.7 | 128.1 | 504.5 | 268.8 | 235.7 | |||||
| Provision (Reversal) for credit losses | 1.8 | (0.1) | 1.9 | 1.9 | (0.1) | 2.0 | |||||
| Net interest income after provision for credit loss | 273.0 | 146.8 | 126.2 | 502.6 | 268.9 | 233.7 | |||||
| Non-interest income (loss) | 17.9 | (15.3) | 33.2 | 59.0 | (28.1) | 87.1 | |||||
| Non-interest expense | 51.1 | 46.6 | 4.5 | 101.2 | 92.6 | 8.6 | |||||
| Affordable Housing Program assessments | 24.0 | 8.6 | 15.4 | 46.1 | 14.9 | 31.2 | |||||
| Net income | $215.8 | $76.3 | $139.5 | $414.3 | $133.3 | $281.0 | |||||
| Return on average equity | 9.84% | 4.71% | 9.73% | 4.17% | |||||||
| Return on average assets | 0.47% | 0.27% | 0.48% | 0.24% | |||||||
| Net interest margin | 0.60% | 0.52% | 0.59% | 0.48% | |||||||
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, 2023, the FHLBNY serves 335 financial institutions in New Jersey, New York, Puerto Rico, and the U.S. Virgin Islands. The mission of the FHLBNY is to provide members with reliable liquidity in support of housing and local community development.