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| 8-K - FEDERAL HOME LOAN BANK OF NEW YORK - Federal Home Loan Bank of New York | form_8-k.htm |
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FOR
IMMEDIATE RELEASE
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CONTACT:
Brian Finnegan
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|
February
23, 2021
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(212)
441-6877
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FEDERAL HOME LOAN BANK OF NEW YORK ANNOUNCES
FULL-YEAR AND FOURTH QUARTER 2020 OPERATING HIGHLIGHTS
New
York, New York — The Federal Home Loan Bank of New York
(“FHLBNY”) today released its unaudited financial
highlights for the quarter and year ended December 31,
2020.
The
FHLBNY’s net income for 2020 was $442.4 million, a decrease of
$30.2 million, or
6.4 percent, from
net income of $472.6 million for 2019, primarily due to declines in
fair values on
derivatives in economic hedges partially offset by gains on trading
account securities held for liquidity and higher operating
expenses driven by investments to enhance the FHLBNY’s
technology capabilities.
These reductions were partially offset by higher net interest
income due to larger average advances balances sustained during the
year, favorable funding spreads and prepayment fees on
advances. The FHLBNY’s return on average equity
(“ROE”) for 2020 was 5.59 percent, compared to ROE
of 6.53 percent for 2019.
In the
fourth quarter of 2020, the FHLBNY earned $98.6 million in net income, a
decrease of $29.7
million, or 23.2
percent, from net income of $128.3 million for the fourth quarter
of 2019. The reduction in income in the fourth quarter of 2020 was
driven by declines in fair values on trading account securities
held for liquidity and an increase in non-interest expense,
partially
offset by higher net interest income. The FHLBNY’s ROE
for the fourth quarter of 2020 was 5.23 percent, compared to ROE
of 7.08 percent for the fourth quarter of 2019.
“Throughout
2020, as the pandemic and resulting health and economic crises
impacted virtually every level of every community across the
country, the Federal Home Loan Bank of New York served as a stable
and trusted partner to our members and the communities we serve to
help them face the enormous challenges experienced over the
year,” said José R. González, president and CEO of
the FHLBNY. “From record advance growth at the onset of the
crisis in March 2020 to the rollout of our Small Business Recovery
Grant Program and the launch of our 2020 Affordable Housing Program
and Homebuyer Dream Program® rounds
throughout the year, we were proud to serve as a dependable
provider of liquidity and community support amid as difficult an
operating environment as we have ever encountered. These challenges
are expected to continue in 2021, but, in the year ahead, our
members can continue to expect a stable and reliable funding
partner, a strong supporter of the communities we serve, and a
dedicated team that is focused on delivering the full value of
membership to our membership every day.”
As of
December 31, 2020, total assets were $137.0 billion, a decrease of
$25.1 billion, or
15.5 percent,
from total assets of $162.1 billion as of December 31, 2019. As of
December 31, 2020, advances were $92.1 billion, a decrease of
$8.6 billion, or
8.6 percent, from
$100.7 billion as of December 31, 2019. Average
advances balances were $107.7 billion in 2020, $12.1 billion or
12.6% higher than the average advances balance level of $95.6
billion in 2019. A decrease in liquidity investments also
contributed to the decline in total assets.
As of
December 31, 2020, total capital was $7.3 billion, a decrease of
$0.2 billion from
total capital of $7.5 billion at December 31, 2019. The
FHLBNY’s retained earnings increased during 2020 by
$108.6 million to
$1.9 billion as
of December 31, 2020, of which approximately $1.1 billion is unrestricted
retained earnings and $0.8 billion is restricted
retained earnings. At December 31, 2020, the FHLBNY met its
regulatory capital ratios and liquidity requirements.
The
FHLBNY allocated $49.2 million from its 2020 earnings for its
Affordable Housing Program, a decrease of $3.4 million, or 6.4
percent, from the Affordable Housing Program allocation in
2019.
The
FHLBNY will publish its 2020 audited financial results in its Form
10-K filing with the U.S. Securities and Exchange Commission, which
is expected to be filed on or about March 19, 2021.
- MORE
-
Federal Home Loan Bank of New York
Financial Highlights
(Preliminary and unaudited)
(Dollars
in millions)
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December 31,
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December 31,
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Percent
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2020
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2019
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Change
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Advances (principal)
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$ 92,067
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$ 100,695
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-9%
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Mortgage loans held for portfolio (principal)
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2,900
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3,173
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-9%
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Total investments
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39,748
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56,892
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-30%
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Total assets
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136,996
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162,062
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-15%
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Consolidated Obligations
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127,375
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152,723
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-17%
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Capital stock
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5,367
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5,779
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-7%
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Total retained earnings
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1,909
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1,801
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6%
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AOCI
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(20)
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(48)
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58%
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Total capital
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7,256
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7,532
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-4%
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Capital-to-assets ratio (GAAP)
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5.30
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%
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4.65
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%
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Capital-to-assets ratio (Regulatory)
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5.31
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%
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4.68
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%
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OPERATING RESULTS
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Quarter Ended December 31
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Year Ended December 31,
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Percent
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Percent
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2020
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2019
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Change
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2020
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2019
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Change
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||||||
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Total
interest income
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$ 337
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$ 829
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-59%
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$ 1,934
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$ 3,781
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-49%
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Total
interest expense
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147
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665
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-78%
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1,181
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3,114
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-62%
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Net
interest income
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190
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164
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16%
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753
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667
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13%
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Provision
for credit losses
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(2)
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-
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NM
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4
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-
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NM
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Non-interest
income (loss)
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(22)
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26
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-185%
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(51)
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34
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-250%
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Non-interest
expense
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61
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48
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27%
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207
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176
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18%
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Affordable
Housing Program
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assessments
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11
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14
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-21%
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49
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52
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-6%
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Net
income
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$ 98
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$ 128
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-23%
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$ 442
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$ 473
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-7%
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Return
on average equity
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5.23
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%
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7.08
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%
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5.59
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%
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6.53
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%
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Return
on average assets
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0.27
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%
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0.34
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%
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0.28
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%
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0.32
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%
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Net
interest margin
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0.52
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%
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0.44
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%
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0.48
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%
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0.46
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%
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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 December 31, 2020, the FHLBNY serves 330 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.
# # #
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, 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 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. Forward-looking statements speak only as of the date
they are made, and we undertake no obligation to revise or update
publicly any forward-looking statements for any
reason.