New York, NY – The Federal Home Loan Bank of New York (“FHLBNY”) today released its unaudited financial highlights for the quarter ended September 30, 2023.
“Our results for the third quarter of 2023 reflect the continued strength and stability of our franchise, and the vital importance of our foundational liquidity mission,” said José R. González, president and CEO of the FHLBNY. “Our members access FHLBNY credit products in all market environments to support their funding needs. Across the country, Home Loan Bank liquidity is important for financial stability as it helps ensure that local lenders have funds to lend in all credit environments for homeownership and rental housing, small businesses, agriculture and other lending activities that drive community and economic development.”
Highlights from the third quarter of 2023 include:
- Net income for the quarter was $181.9 million, an increase of $52.4 million, or 40.4%, from net income of $129.5 million for the third quarter of 2022. Net interest income after provision for credit losses for the quarter was $242.5 million, an increase of $73.7 million, or 43.7%, from $168.8 million in the third quarter last year. This increase was driven primarily by an increase of 285 basis points in yields on average earning assets and an increase of $13.4 billion in average advances balances from the prior year period.
- Return on average equity (“ROE”) for the quarter was 9.13% (annualized), compared to ROE of 7.39% for the third quarter of 2022.
- As of September 30, 2023, total assets were $144.4 billion, a decrease of $13.0 billion, or 8.2%, from total assets of $157.4 billion at December 31, 2022. As of September 30, 2023, advances were $101.5 billion, a decrease of $13.8 billion, or 12.0%, from $115.3 billion at December 31, 2022.
- As of September 30, 2023, total capital was $7.9 billion, a decrease of $0.4 billion from total capital of $8.3 billion at December 31, 2022 in alignment with a decline in advances balances. The FHLBNY’s retained earnings have increased during the year by $0.2 billion, to $2.3 billion as of September 30, 2023, of which $1.3 billion was unrestricted retained earnings and $1.0 billion was restricted retained earnings. At September 30, 2023, the FHLBNY met its regulatory capital ratios and liquidity requirements.
- The FHLBNY allocated $20.2 million from its third quarter 2023 earnings for its Affordable Housing Program.
The FHLBNY currently expects to file its Form 10-Q for the third quarter of 2023 with the U.S. Securities and Exchange Commission by November 9, 2023.
| SELECTED BALANCE SHEET ITEMS | |||||
| September 30, | December 31, | ||||
| 2023 | 2022 | Change | |||
| Advances | $101,488 | $115,293 | $(13,805) | ||
| Mortgage loans held for portfolio | 2,165 | 2,107 | 58 | ||
| Mortgage-backed securities | 19,187 | 15,157 | 4,030 | ||
| Liquidity assets | 19,456 | 22,605 | (3,149) | ||
| Total assets | 144,421 | 157,391 | (12,970) | ||
| Consolidated obligations | 132,771 | 147,291 | (14,520) | ||
| Capital stock | 5,750 | 6,387 | (637) | ||
| Unrestricted retained earnings | 1,291 | 1,185 | 106 | ||
| Restricted retained earnings | 1,030 | 911 | 119 | ||
| Accumulated other comprehensive income (Loss) | (189) | (136) | (53) | ||
| Total capital | $7,882 | $8,347 | $(465) | ||
| Capital-to-assets ratio (GAAP) | 5.46% | 5.30% | |||
| Capital-to-assets ratio (Regulatory) | 5.59% | 5.39% | |||
| OPERATING RESULTS (dollars in millions) | |||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
| 2023 | 2022 | Change | 2023 | 2022 | Change | ||||||
| Total interest income | $2,030.7 | $806.3 | $1,224.4 | $6,264.1 | $1,415.0 | $4,849.1 | |||||
| Total interest expense | 1,788.3 | 637.8 | 1,150.5 | 5,517.2 | 977.7 | 4,539.5 | |||||
| Net interest income | 242.4 | 168.5 | 73.9 | 746.9 | 437.3 | 309.6 | |||||
| Provision (Reversal) for credit losses | (0.1) | (0.3) | 0.2 | 1.8 | (0.4) | 2.2 | |||||
| Net interest income after provision for credit loss | 242.5 | 168.8 | 73.7 | 745.1 | 437.7 | 307.4 | |||||
| Non-interest income (loss) | 11.8 | 24.0 | (12.2) | 70.7 | (4.1) | 74.8 | |||||
| Non-interest expense | 52.2 | 48.9 | 3.3 | 153.3 | 141.4 | 11.9 | |||||
| Affordable Housing Program assessments | 20.2 | 14.4 | 5.8 | 66.3 | 29.3 | 37.0 | |||||
| Net income | $181.9 | $129.5 | $52.4 | $596.2 | $262.9 | $333.3 | |||||
| Return on average equity | 9.13% | 7.39% | 9.54% | 5.31% | |||||||
| Return on average assets | 0.48% | 0.40% | 0.48% | 0.30% | |||||||
| Net interest margin | 0.64% | 0.52% | 0.60% | 0.50% | |||||||
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, 2023, the FHLBNY serves 334 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.