Federal Home Loan Bank of New York Announces Full Year and Fourth Quarter 2020 Operating Highlights

0

NEW YORK, February 23, 2021 / PRNewswire / – The Federal Home Loan Bank of new York (“FHLBNY”) today released its unaudited financial highlights for the quarter and year ended the 31st of December, 2020.

The net result of the FHLBNY for 2020 is $ 4420.4 million, a decrease of $ 300.2 million, or 6.4%, of the net profit of $ 472.6 million for 2019, mainly 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 aimed at improving technological capabilities of the FHLBNY. These reductions were partially offset by higher net interest income due to higher average advance balances sustained during the year, favorable funding spreads and prepayment charges on advances. The FHLBNY’s return on average equity (“ROE”) for 2020 was 5.59%, compared to an ROE of 6.53% for 2019.

In the fourth quarter of 2020, the FHLBNY obtained $ 980.6 million in net income, a decrease of $ 290.7 million, or 23.2%, of the net profit of $ 128.3 million for the fourth quarter of 2019. The decrease in revenue in the fourth quarter of 2020 is due to lower fair values ​​of securities in the trading account held for liquidity purposes and an increase in non-interest expenses, partially offset by the increase in net interest income. FHLBNY’s ROE for the fourth quarter of 2020 was 5.23%, compared to 7.08% for the fourth quarter of 2019.

“Throughout 2020, as the pandemic and the resulting health and economic crises affected virtually every level of every community in the country, the Federal Home Loan Bank of new York has been a stable and trusted partner for our members and the communities we serve to help them face the enormous challenges faced during the year, ”said José R. González, President and CEO of the FHLBNY. “Record growth at the start of the crisis in March 2020 the roll-out of our Small Business Stimulus Grant program and the launch of our 2020 Affordable Housing Program and Homebuyer’s Dream Program® rounds throughout the year, we were proud to be a reliable provider of liquidity and community support in such a challenging operating environment as we have ever encountered. These challenges are expected to continue into 2021, but, over the coming year, our members can continue to expect a stable and reliable financial partner, a strong supporter of the communities we serve, and a dedicated team that is focused. on providing the full value of membership to our members every day. “

From December 31, 2020, the total assets were $ 137.0 billion, a decrease in 25 $0.1 billion, or 15.5%, of the total assets of $ 1620.1 billion to the 31st of December, 2019. As of December 31, 2020, advances have been $ 920.1 billion, a decrease of $ 80.6 billion, or 8.6 percent, of $ 100.7 billion from the 31st of December, 2019. The average advance balances were $ 107.7 billion in 2020, $ 12.1 billion i.e. 12.6% more than the average level of the balance of advances of $ 95.6 billion in 2019. A decrease in cash investments also contributed to the decline in total assets.

From December 31, 2020, the total capital was $ 70.3 billion, a decrease of $ 00.2 billion of the total capital of $ 7.5 billion To the 31st of December, 2019. Retained earnings of FHLBNY increased in 2020 by $ 1080.6 million to $ 10.9 billion at December 31, 2020, of which approximately $ 10.1 billion unallocated profits and $ 0.8 billion is restricted retained earnings. TO December 31, 2020, the FHLBNY complied with its regulatory capital ratios and liquidity requirements.

The FHLBNY awarded $ 49.2 million of its 2020 revenues for its affordable housing program, a decrease of $ 3.4 million, or 6.4%, of the Affordable Housing Program allocation in 2019.

The FHLBNY will publish its 2020 audited financial results in its Form 10-K filed with the United States Securities and Exchange Commission, which is expected to be filed on or about March 19, 2021.

Federal Mortgage Bank of New York

Financial Highlights

(Preliminary and unaudited)

(in millions of dollars)








SELECTED BALANCE SHEET ITEMS








The 31st of December,


The 31st of December,


Percent


2020


2019


Switch








Advances (principal)

$ 92,067


$ 100,695


-9%

Mortgages held for the portfolio (principal)

2,900


3,173


-9%

Total investments

39,748


56,892


-30%

Total assets

136,996


162,062


-15%







Consolidated bonds

127,375


152,723


-17%

Share capital

5 367


5 779


-7%

Total retained earnings

1,909


1,801


6%

AOCI

(20)


(48)


58%

Total capital

7,256


7,532


-4%








Capital / asset ratio (GAAP)

5.30

%

4.65

%



Capital / asset ratio (regulatory)

5.31

%

4.68

%










OPERATING RESULTS





























Quarter ended December 31


Fiscal year ended December 31


2020


2019


Percent

Switch


2020


2019


Percent

Switch














Total interest income

$ 337


$ 829


-59%

%


$ 1,934


$ 3,781


-49%

Total interest charges

147


665


-78%



1,181


3,114


-62%

Net interest income

190


164


16%



753


667


13%

Provision for credit losses

(2)



NM



4



NM

Income (loss) other than interest

(22)


26


-185%



(51)


34


-250%

Non-interest charges

61


48


27%



207


176


18%

Affordable Housing Program
evaluations

11


14


-21%



49


52


-6%

Net revenue

$ 98


$ 128


-23%



$ 442


$ 473


-7%














Return on average equity

5.23

%

7.08

%




5.59

%

6.53

%


Return on average assets

0.27

%

0.34

%




0.28

%

0.32

%


Net interest margin

0.52

%

0.44

%




0.48

%

0.46

%


Federal Mortgage Bank of new York
The Federal Mortgage Bank of new York is a congressionally licensed wholesale bank. It is part of the Federal Home Loan Bank System, a national wholesale banking network of 11 regional banks owned by shareholders. From December 31, 2020, the FHLBNY serves 330 financial institutions in New Jersey, new York, Porto Rico, and the US Virgin Islands. The Federal Home Loan Banks support the efforts of local members to help provide financing to US buyers.

Safe Harbor Declaration under the Private Securities Litigation Reform Act 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 on our current expectations and speak only as of the date hereof. These statements may use forward-looking terms, such as “projected”, “expects”, “might”, or their negatives or other variations on such terms. The Bank cautions that, by their nature, forward-looking statements involve risks or uncertainties and that actual results could differ materially from those expressed or implied in such forward-looking statements or could affect the extent to which an objective, projection , an estimate, or the prediction is made. 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 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 member profile, the withdrawal of one or more important members, competitive pressures, changes in demand for our products and general economic conditions. Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to publicly revise or update any forward-looking statements for any reason.

CONTACT:

Brian Finnegan


(212) 441-6877

SOURCE Federal Home Loan Bank of new York

Related links

http://www.fhlbny.com


Source link

Leave A Reply

Your email address will not be published.