NEW YORK, March 25, 2011 /PRNewswire/ -- The Federal Home Loan Bank of New York ("Bank") today released its financial results for the year ended December 31, 2010.
"The Bank posted a solid and consistent performance throughout 2010," said Alfred A. DelliBovi, president and CEO of the Federal Home Loan Bank of New York. "The Bank continued to provide a reasonable dividend, build retained earnings, and provide the liquidity our local member-lenders need to support housing and jobs."
Highlights from 2010 include:
- Net income for 2010 was $275.5 million, and return on average equity ("ROE") was 5.24 percent. These figures compare to record net income of $570.8 million and ROE of 10.02 percent in 2009. The decrease in net income was due to lower gains from derivatives and hedging activities as compared to significant gains from these activities in 2009. In addition, the Bank experienced lower average balances of advances and MBS as compared to the same period a year ago, as well as some compression of spreads.
- As of December 31, 2010, total assets were $100.2 billion, a decrease of $14.2 billion, or 12 percent, from total assets of $114.5 billion as of December 31, 2009. The decrease in total assets was primarily a result of a decline in advances of $13.1 billion, or 14 percent, during the period, from $94.3 billion as of December 31, 2009, to $81.2 billion as of December 31, 2010. This decrease in member demand for advances was driven by economic factors such as continued growth in members' deposit bases and the continued availability of government funding and liquidity options.
- As of December 31, 2010, total capital was $5.1 billion, a decrease of $459 million, or 8 percent, from $5.6 billion as of December 31, 2009. The Bank's unrestricted retained earnings increased during 2010 by $23 million to $712 million as of December 31, 2010. At December 31, 2010, the Bank met its regulatory capital-to-assets ratios and liquidity requirements.
- The Bank paid stockholders a cash dividend on February 18, 2011, at a rate of 5.80 percent (annualized) for the fourth quarter of 2010. The cash value of this dividend was approximately $67 million. The dividend rate paid for the first, second and third quarters of 2010 was 4.25 percent, 4.60 percent, and 6.50 percent, respectively. The full-year average dividend rate paid was 5.29 percent, and the total cash value for all four quarters was approximately $252.0 million.
- The Bank set aside $31 million for the Affordable Housing Program ("AHP") for the year ended December 31, 2010, a decrease of $33.2 million, or 52 percent, from a record $64.3 million for the year ended December 31, 2009. In 2010, the Bank awarded a record $62.3 million in AHP grants to 116 affordable housing projects.
The Bank published its 2010 audited financial results in its Form 10-K filed with the Securities and Exchange Commission on March 25, 2011.
About the Federal Home Loan Bank of New York
The FHLBNY is a Congressionally-chartered wholesale bank. It is part of the Federal Home Loan Bank System, a national wholesale banking network of 12 regional, stockholder-owned banks. The FHLBNY currently serves financial institutions in New Jersey, New York, Puerto Rico, and the U.S. Virgin Islands. The mission of the FHLBNY is to support the efforts of local members to make home mortgages to families of all income levels and provide credit to spur community growth.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This report contains 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.
CONTACT: Eric Amig
SOURCE Federal Home Loan Bank of New York