The Federal Home Loan Bank of New York (“FHLBNY”) today released its unaudited financial highlights for the quarter ended March 31, 2022.
“The Federal Home Loan Bank of New York continued to perform well in the first quarter of 2022. As we move into a steadily improving operating environment, this performance reflects our continued ability to remain a stable and reliable partner to our members in all conditions,”said José R. González, president and CEO of the FHLBNY.
Highlights from the first quarter of 2022 include:
Net income for the quarter was $57.0 million, a decrease of $15.2 million, or 21.0%, from net income of $72.2 million for the first quarter of 2021.
Net interest income for the quarter was $122.1 million, a decrease of $36.4 million, or 23.0%, from net interest income of $158.5 in the second quarter last year.
This decrease was driven primarily by a decline of $18.8 billion in average advances balances from the prior year period. Non-interest income increased by $19.9 million compared with the first quarter of 2021, driven primarily by an increase in value of derivatives and instruments held under the fair value option.
These gains were largely offset by declines in fair value of U.S. Treasury securities held for liquidity purposes as interest rates increased.Return on average equity (“ROE”) for the quarter was 3.61% (annualized), compared to ROE of 4.06% for the first quarter of 2021.
As of March 31, 2022, total assets were $108.6 billion, an increase of $3.2 billion, or 3.1%, from total assets of $105.4 billion at December 31, 2021. The increase was driven primarily by an increase in assets held for liquidity purposes, including U.S. Treasury securities.
`As of March 31, 2022, advances were $70.6 billion, a decrease of $0.9 billion, or 1.3%, from $71.5 billion at December 31, 2021. As of March 31, 2022, total capital was $6.3 billion, a decrease of $115.8 million from total capital of $6.4 billion at December 31, 2021.
The FHLBNY’s retained earnings were relatively unchanged during the quarter at $1.9 billion as of March 31, 2022, of which $1.1 billion was unrestricted retained earnings and $0.8 billion was restricted retained earnings.
Capital stock declined by $20 million. Accumulated Other Comprehensive Income declined by $103 million; this was primarily driven by net fair value losses on Available for Sale securities as interest rates increased during the period.
At March 31, 2022, the FHLBNY met all of its regulatory capital ratios.The FHLBNY allocated $6.4 million from its first quarter 2022 earnings for its Affordable Housing Program.
The FHLBNY currently expects to file its Form 10-Q for the first quarter of 2022 with the U.S. Securities and Exchange Commission on or about May 12, 2022.
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 March 31, 2022, the FHLBNY serves 320 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.
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