Blueprint
FOR
IMMEDIATE RELEASE
|
CONTACT:
Brian Finnegan
|
July
29, 2019
|
(212)
441-6877
|
FEDERAL HOME LOAN BANK OF NEW YORK
ANNOUNCES SECOND QUARTER 2019 OPERATING HIGHLIGHTS
New
York, NY – The Federal Home Loan Bank of New York
(“FHLBNY”) today released its unaudited financial
highlights for the quarter ended June 30, 2019.
“Despite
a challenging and volatile operating environment, the Federal Home
Loan Bank of New York served as a stable and reliable partner for
our members in the second quarter of 2019,” said José R.
González, president and CEO of the FHLBNY. “Our
cooperative performed well through the first half of the year, and
we are well-positioned to continue to meet the needs of our members
in all market conditions.”
Highlights
from the second quarter of 2019 include:
●
Net income for the
quarter was $108.1 million, a decrease of $47.1 million, or 30.3
percent, from net income of $155.2 million for the second quarter
of 2018. This decrease in net income was driven primarily by:
earning asset balances that were lower on average by 4.1 percent
versus the second quarter of 2018, and par advances balances that
were lower on average by 6.3 percent versus the same quarter; lower
pricing spreads on new advances effective as of January 1, 2019;
higher costs of funding in the second quarter of 2019 as a result
of uncertainty in the markets, thereby reducing the FHLBNY’s
net interest spreads; and operating expenses that were $7.4 million
higher than in the second quarter of 2018 due largely to ongoing
enhancements to the FHLBNY’s technology infrastructure and
other capabilities.
●
Return on average
equity (“ROE”) for the quarter was 5.77 percent
(annualized), compared to ROE of 8.05 percent for the second
quarter of 2018.
●
As of June 30,
2019, total assets were $150.6 billion, an increase of $6.2
billion, or 4.3 percent, from total assets of $144.4 billion at
December 31, 2018. This increase in total assets was driven
primarily by $5.2 billion in higher balances of Securities
purchased under agreements to resell during the period. As of June
30, 2019, advances were $102.4 billion, a decrease of $2.8 billion,
or 2.7 percent, from $105.2 billion at December 31,
2018.
●
As of June 30,
2019, total capital was $7.5 billion, a decrease of $0.2 million
from total capital of $7.7 billion at December 31, 2018. The
FHLBNY’s retained earnings increased by $54.2 million to $1.7
billion as of June 30, 2019, of which $1.1 billion were
unrestricted retained earnings and $639.9 million were restricted
retained earnings. At June 30, 2019, the FHLBNY met its regulatory
capital ratios and liquidity requirements.
●
The FHLBNY
allocated $12.0 million from its second quarter 2019 earnings for
its Affordable Housing Program.
The
FHLBNY currently expects to file its Form 10-Q for the second
quarter of 2019 with the U.S. Securities and Exchange Commission on
or before August 8, 2019.
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, 2019, the FHLB of New York serves 324 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, 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. We undertake no obligation to revise or update publicly
any forward-looking statements for any reason.