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8-K - FEDERAL HOME LOAN BANK OF NEW YORK - Federal Home Loan Bank of New York | form_8-k.htm |
FOR
IMMEDIATE RELEASE
|
CONTACT:
Brian Finnegan
|
April
28, 2020
|
(212)
441-6877
|
FEDERAL HOME LOAN BANK OF NEW YORK
ANNOUNCES FIRST QUARTER 2020 OPERATING HIGHLIGHTS
New
York, NY – The Federal Home Loan Bank of New York
(“FHLBNY”) today released its unaudited financial
highlights for the quarter ended March 31, 2020.
“Despite
the challenging and volatile market environment we experienced in
the first quarter of 2020, especially as the COVID-19 pandemic
began to spread across our nation in March, the Federal Home Loan
Bank of New York remains a reliable partner for our members and the
communities we all serve,” said José R. González,
president and CEO of the FHLBNY. “Most importantly, we
continue to prove our purpose, as reflected in the 35 percent
increase in advances during the period, reaching a record level of
advances as members increasingly looked to us as a reliable source
of liquidity amid a turbulent operating environment. This
reliability is driven by our people. At the FHLBNY, our team is
strong, focused on our mission and committed to our members. This
crisis has proven how vital the local lender is to communities
across our nation, and the essential value of their work will only
continue to grow as we move through the crisis and into the
recovery period. We are honored to stand alongside the local
lenders of New Jersey, New York, Puerto Rico and the U.S. Virgin
Islands as their trusted partner, and together, we will help see
our communities through this.”
On
Thursday, March 12, 2020, the FHLBNY triggered its Business
Continuity Plan to ensure operational resilience and position the
FHLBNY to respond effectively to the COVID-19 pandemic. As a
result, on Monday, March 16, 2020, the FHLBNY moved to a remote
working environment operational posture, with 85 percent of staff
operating remotely and very limited critical staff working from the
FHLBNY’s Jersey City and New York offices. On Tuesday, April
14, 2020, the FHLBNY successfully implemented 100 percent remote
operations, and since that time has been able to operate fully
remotely from a business and operational standpoint. The FHLBNY has
to date experienced no disruptions to its business in its remote
operational posture.
Highlights
from the first quarter of 2020 include:
●
Net income for the
quarter was $105.1 million, a decrease of $29.7 million, or 22.0
percent, from net income of $134.8 million for the first quarter of
2019. The decline in income was driven mainly by lower market
interest rates and less favorable funding conditions as compared
with the prior year period. Return on average equity
(“ROE”) for the quarter was 5.57 percent (annualized),
compared to ROE of 7.53 percent for the first quarter of
2019.
●
As of March 31,
2020, total assets were $182.7 billion, an increase of $20.6
billion, or 12.7 percent, from total assets of $162.1 billion at
December 31, 2019. This increase in total assets was driven
primarily by higher advances balances during the period. As of
March 31, 2020, advances were $136.2 billion, an increase of $35.5
billion, or 35.3 percent, from $100.7 billion at December 31, 2019.
The majority of this increase in advances was experienced in March
as members responded to market uncertainty driven by the COVID-19
pandemic. Total liquidity assets declined to $24.7 billion, a
decrease of $14.2 billion from December 31, 2019, as available
liquidity was used to help fund advance demand. At March 31, 2020,
the FHLBNY continued to meet its regulatory liquidity
requirements.
●
As of March 31,
2020, total capital was $9.0 billion, an increase of $1.5 billion
from total capital of $7.5 billion at December 31, 2019. The
FHLBNY’s retained earnings increased during the quarter by
$13.6 million to $1.8 billion as of March 31, 2020, of which $1.1
billion was unrestricted retained earnings and $706.8 million was
restricted retained earnings. At March 31, 2020, the FHLBNY met all
of its regulatory capital ratios.
●
The FHLBNY
allocated $11.7 million from its first quarter 2020 earnings for
its Affordable Housing Program.
The
FHLBNY currently expects to file its Form 10-Q for the first
quarter of 2020 with the U.S. Securities and Exchange Commission on
or about May 8, 2020.
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, 2020, the FHLBNY serves
322 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.