Federal Home Loan Bank of New York
05/07/2026 | Press release | Distributed by Public on 05/07/2026 10:56
Quarterly Report for Quarter Ending March 31, 2026 (Form 10-Q)
Management's Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking Statements
Statements contained in this Quarterly Report on Form 10-Q, including statements describing the objectives, projections, estimates, or
predictions of the Federal Home Loan Bank of New York ("we" "us," "our," "the Bank" or the "FHLBNY") may be "forward-
looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934. These statements may use forward-looking terminology, such as "anticipates," "believes," "could," "estimates," "may,"
"should," "will," or other variations on these terms or their negatives. The Bank cautions that, by their nature, forward-looking
statements are subject to a number of risks or uncertainties, including the Risk Factors set forth in Part 1, Item 1A of our Annual
Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on March 20, 2026 (the "2025 Annual
Report"), and the risks set forth below, and that actual results could differ materially from those expressed or implied in these
forward-looking statements. As a result, you are cautioned not to place undue reliance on such statements. These forward-looking
statements speak only as of the date they were made, and the Bank does not undertake to update any forward-looking statement
herein. Forward-looking statements include, among others, the following:
•the Bank's projections regarding income, retained earnings, dividend payouts, and the repurchase of excess capital stock;
•the Bank's statements related to gains and losses on derivatives, future credit and impairment charges, and future
classification of securities;
•the Bank's expectations relating to future balance sheet growth;
•the Bank's targets under the Bank's retained earnings plan;
•the Bank's expectations regarding the size of its mortgage loan portfolio, particularly as compared to prior periods;
•the Bank's statements related to reform legislation or executive actions, including, without limitation, housing or
government-sponsored enterprise legislation or executive orders; and
•executive, legislative, regulatory and judicial events and actions or other developments that affect the Bank, its members,
counterparties, or investors in the consolidated obligations of the Federal Home Loan Banks (FHLBanks), such as any
government-sponsored enterprise (GSE) reforms, any changes resulting from the Finance Agency's review and analysis of
the FHLBank System, including recommendations published in response to the executive orders concerning housing
affordability, changes in the Federal Home Loan Bank Act of 1932, as amended (FHLBank Act), changes in applicable
sections of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, or changes in other statutes or
regulations applicable to the FHLBanks.
Actual results may differ from forward-looking statements for many reasons, including, but not limited to, the risk factors set forth in
Part I, Item 1A - Risk Factors of our 2025 Annual Report and the risks set forth below:
•changes in economic and market conditions, including the evolving risks relating to the March 2023 U.S. banking sector
liquidity crisis;
•changes in demand for Bank advances and other products resulting from changes in members' and FDIC deposit flows and
members' credit demands or otherwise;
•an increase in advance prepayments as a result of changes in interest rates (including negative interest rates) or other
factors;
•the volatility of market prices, rates, and indices that could affect the value of collateral held by the Bank as security for
obligations of Bank members and counterparties to interest rate exchange agreements and similar agreements;
•political events, including legislative developments and executive orders that affect the Bank, its members, counterparties,
and/or investors in the Consolidated obligations (COs) of the FHLBanks;
•competitive forces including, without limitation, other sources of funding available to Bank members, other entities
borrowing funds in the capital markets, and the ability to attract and retain skilled employees;
•the pace of technological change and the ability of the Bank to develop and support technology and information systems,
including the cybersecurity, sufficient to manage the risks of the Bank's business effectively;
•changes in investor demand for COs and/or the terms of interest rate exchange agreements and similar agreements;
•timing and volume of market activity;
•ability to introduce new or adequately adapt current Bank products and services and successfully manage the risks
associated with those products and services, including new types of collateral used to secure advances;
•risk of loss arising from litigation filed against one or more of the FHLBanks;
•realization of losses arising from the Bank's joint and several liability on COs;
•risk of loss due to fluctuations in the housing market;
•inflation or deflation;
•issues and events within the FHLBank System and in the political arena that may lead to legislative, regulatory, judicial, or
other developments or executive orders that may affect the marketability of the COs, the Bank's financial obligations with
respect to COs, and the Bank's ability to access the capital markets;
•the availability of derivative financial instruments of the types and in the quantities needed for risk management purposes
from acceptable counterparties;
•significant business disruptions resulting from natural or other disasters (including, but not limited to, health emergencies
such as pandemics or epidemics), acts of war (including, but not limited to, the war between Ukraine and Russia or the
conflicts in the Middle East), cyberattacks or terrorism;
•the effect of new accounting standards, including the development of supporting systems;
•membership changes, including changes resulting from mergers or changes in the principal place of business of Bank
members;
•the soundness of other financial institutions, including Bank members, nonmember borrowers, other counterparties, and the
other FHLBanks; and
•the willingness of the Bank's members to do business with the Bank whether or not the Bank is paying dividends or
repurchasing excess capital stock.
Risks and other factors could cause actual results of the Bank to differ materially from those implied by any forward-looking
statements. These risk factors are not exhaustive. The Bank operates in changing economic, legislative and regulatory environments,
and new risk factors will emerge from time to time. Management cannot predict such new risk factors nor can it assess the impact, if
any, of such new risk factors on the business of the Bank or the extent to which any factor, or combination of factors, may cause actual
results to differ materially from those implied by any forward-looking statements.
Organization of Management's Discussion and Analysis (MD&A).
This MD&A is designed to provide information that will assist the readers in better understanding the FHLBNY's financial
statements, the changes in key items in the Bank's financial statements from period to period and the primary factors driving those
changes as well as how accounting principles affect the FHLBNY's financial statements. The MD&A is organized as follows:
|
Page
|
|
|
Financial Condition
|
|
|
Advances
|
|
|
Investments
|
|
|
Mortgage Loans Held-for-Portfolio, Net
|
|
|
Debt Financing Activity and Consolidated Obligations
|
|
|
Stockholders' Capital
|
|
|
Derivative Instruments and Hedging Activities
|
|
|
Liquidity, Cash Flows, Short-Term Borrowings and Short-Term Debt
|
|
|
Results of Operations
|
|
|
Net Income
|
|
|
Net Interest Income, Interest Rate Margin and Interest Rate Spread
|
|
|
Interest Income
|
|
|
Interest Expense
|
|
|
Analysis of Non-Interest Income (Loss)
|
|
|
Operating Expenses, Compensation and Benefits, and Other Expenses
|
|
|
Legislative and Regulatory Developments
|
|
MD&A TABLE & FIGURE REFERENCE
|
Table(s) & Figure(s)
|
|
Description
|
|
Page(s)
|
|
Selected Financial Data
|
||||
|
1.1
|
Financial Condition
|
|||
|
2.1 - 2.8
|
Advances
|
|||
|
3.1 - 3.8
|
Investments
|
|||
|
4.1 - 4.2
|
Mortgage Loans
|
|||
|
5.1 - 5.11
|
Consolidated Obligations
|
|||
|
6.1 - 6.3
|
Capital
|
|||
|
7.1
|
Derivatives
|
|||
|
8.1 - 8.3
|
Liquidity
|
|||
|
9.1 - 9.12
|
Results of Operations
|
|||
This overview of management's discussion and analysis highlights selected information and may not contain all of the information
that is important to readers of this Form 10-Q. For a more complete understanding of events, trends and uncertainties, as well as the
liquidity, capital, credit and market risks, and critical accounting estimates, affecting the Federal Home Loan Bank of New York
(FHLBNY or Bank), this Form 10-Q should be read in its entirety and in conjunction with the Bank's most recent 2025 Form 10-K
filed on March 20, 2026.
Selected Financial Data.
|
Statements of Condition
(dollars in millions)
|
March 31,
2026
|
December 31,
2025
|
September 30,
2025
|
June 30,
2025
|
March 31,
2025
|
||||||
|
Investments (a)
|
$62,892
|
$60,787
|
$55,882
|
$59,771
|
$56,497
|
||||||
|
Advances
|
110,240
|
92,307
|
96,219
|
104,720
|
97,523
|
||||||
|
Mortgage loans held-for-portfolio, net (b)
|
2,689
|
2,644
|
2,560
|
2,459
|
2,380
|
||||||
|
Total assets
|
176,665
|
156,545
|
155,434
|
167,779
|
157,224
|
||||||
|
Deposits and borrowings
|
1,924
|
3,090
|
2,924
|
3,583
|
2,730
|
||||||
|
Consolidated obligations, net
|
|||||||||||
|
Bonds
|
66,280
|
68,467
|
82,326
|
95,009
|
92,207
|
||||||
|
Discount notes
|
98,719
|
76,020
|
60,973
|
59,511
|
53,189
|
||||||
|
Total consolidated obligations
|
164,999
|
144,487
|
143,299
|
154,520
|
145,396
|
||||||
|
Mandatorily redeemable capital stock
|
|||||||||||
|
AHP liability
|
|||||||||||
|
Capital
|
|||||||||||
|
Capital stock
|
6,228
|
5,411
|
5,582
|
5,962
|
5,631
|
||||||
|
Retained earnings
|
|||||||||||
|
Unrestricted
|
1,306
|
1,286
|
1,292
|
1,279
|
1,272
|
||||||
|
Restricted
|
1,359
|
1,329
|
1,303
|
1,271
|
1,240
|
||||||
|
Total retained earnings
|
2,665
|
2,615
|
2,595
|
2,550
|
2,512
|
||||||
|
Accumulated other comprehensive income (loss)
|
(33)
|
(11)
|
(48)
|
(88)
|
(66)
|
||||||
|
Total capital
|
8,860
|
8,015
|
8,129
|
8,424
|
8,077
|
||||||
|
Equity to asset ratio (c)(j)
|
5.02
|
%
|
5.12
|
%
|
5.23
|
%
|
5.02
|
%
|
5.14
|
%
|
|
Statements of Condition
|
Three months ended
|
|||||||||
|
Averages (See note below; dollars in millions)
|
March 31,
2026
|
December 31,
2025
|
September 30,
2025
|
June 30,
2025
|
March 31,
2025
|
|||||
|
Investments (a)
|
$60,683
|
$56,290
|
$58,281
|
$57,627
|
$56,040
|
|||||
|
Advances
|
102,680
|
91,750
|
100,672
|
107,409
|
102,278
|
|||||
|
Mortgage loans held-for-portfolio, net
|
2,670
|
2,603
|
2,506
|
2,420
|
2,360
|
|||||
|
Total assets
|
166,912
|
151,569
|
162,466
|
168,600
|
161,912
|
|||||
|
Interest-bearing deposits and other borrowings
|
2,456
|
2,867
|
2,801
|
2,644
|
2,624
|
|||||
|
Consolidated obligations, net
|
||||||||||
|
Bonds
|
65,328
|
71,240
|
87,988
|
96,913
|
85,222
|
|||||
|
Discount notes
|
89,105
|
68,380
|
61,900
|
58,980
|
64,316
|
|||||
|
Total consolidated obligations
|
154,433
|
139,620
|
149,888
|
155,893
|
149,538
|
|||||
|
Mandatorily redeemable capital stock
|
||||||||||
|
AHP liability
|
||||||||||
|
Capital
|
||||||||||
|
Capital stock
|
5,877
|
5,381
|
5,779
|
6,083
|
5,849
|
|||||
|
Retained earnings
|
||||||||||
|
Unrestricted
|
1,313
|
1,316
|
1,305
|
1,288
|
1,317
|
|||||
|
Restricted
|
1,340
|
1,313
|
1,282
|
1,250
|
1,221
|
|||||
|
Total retained earnings
|
2,653
|
2,629
|
2,587
|
2,538
|
2,538
|
|||||
|
Accumulated other comprehensive income (loss)
|
(28)
|
(83)
|
(96)
|
(71)
|
||||||
|
Total capital
|
8,533
|
7,982
|
8,283
|
8,525
|
8,316
|
|||||
Note - Average balance calculation. For most components of the average balances, a daily weighted average balance is calculated
for the period. When daily weighted average balance information is not available, a simple monthly average balance is calculated.
|
Operating Results and Other Data
|
Three Months Ended
|
||||||||||
|
(dollars in millions, except earnings and dividends per share, and
headcount)
|
March 31,
2026
|
December
31, 2025
|
September
30, 2025
|
June 30,
2025
|
March 31,
2025
|
||||||
|
Net income
|
$154
|
$131
|
$159
|
$153
|
$156
|
||||||
|
Net interest income (d)
|
|||||||||||
|
Dividends paid in cash (e)
|
|||||||||||
|
AHP expense
|
|||||||||||
|
Return on average equity (f)(g)(j)
|
7.31
|
%
|
6.53
|
%
|
7.65
|
%
|
7.20
|
%
|
7.16
|
%
|
|
|
Return on average assets (g)(j)
|
0.37
|
%
|
0.34
|
%
|
0.39
|
%
|
0.36
|
%
|
0.39
|
%
|
|
|
Other non-interest income (loss)
|
|||||||||||
|
Operating expenses (h)
|
|||||||||||
|
Voluntary Contributions
|
|||||||||||
|
Other expenses (k)
|
|||||||||||
|
Total Operating and Other expenses
|
|||||||||||
|
Operating expenses ratio (g)(i)(j)
|
0.13
|
%
|
0.17
|
%
|
0.13
|
%
|
0.12
|
%
|
0.13
|
%
|
|
|
Earnings per share
|
$2.62
|
$2.45
|
$2.77
|
$2.51
|
$2.66
|
||||||
|
Dividends per share
|
$1.92
|
$1.92
|
$1.90
|
$1.84
|
$2.33
|
||||||
|
Headcount (Full/part time)
|
|||||||||||
(a)Investments include trading securities, available-for-sale securities, held-to-maturity securities, grantor trusts owned by the
FHLBNY, securities purchased under agreements to resell, federal funds, loans to other FHLBanks, and other interest-bearing
deposits.
(b)Allowances for credit losses were $3.9 million, $3.7 million, $3.5 million, $3.2 million, and $3.2 million for the periods ended
March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025 and March 31, 2025, respectively.
(c)Equity to asset ratio is Capital stock plus Retained earnings and Accumulated other comprehensive income (loss) as a percentage
of Total assets.
(d)Net interest income is before the provision for credit losses on mortgage loans.
(e)Excludes dividends accrued to non-members classified as interest expense under the accounting standards for certain financial
instruments with characteristics of both liabilities and equity.
(f)Return on average equity is net income as a percentage of average Capital Stock plus average retained earnings and average
Accumulated other comprehensive income (loss).
(g)Annualized.
(h)Operating expenses include Compensation and Benefits.
(i)Operating expenses as a percentage of Total average assets.
(j)All percentage calculations are performed using amounts in thousands and may not agree if calculations are performed using
amounts in millions.
(k)Other expenses include Finance Agency and Office of Finance expenses.
Financial Condition
Table 1.1 Statements of Condition - Period-Over-Period Comparison
|
(Dollars in thousands)
|
March 31, 2026
|
December 31, 2025
|
Net change in dollar
amount
|
Net change in
percentage
|
|||||
|
Assets
|
|||||||||
|
Cash and due from banks
|
$50,897
|
$38,192
|
$12,705
|
33.27
|
%
|
||||
|
Interest-bearing deposits
|
3,350,000
|
2,960,000
|
390,000
|
13.18
|
|||||
|
Securities purchased under agreements to resell
|
10,960,000
|
15,950,000
|
(4,990,000)
|
(31.29)
|
|||||
|
Federal funds sold
|
13,830,000
|
11,550,000
|
2,280,000
|
19.74
|
|||||
|
Trading securities
|
10,654,841
|
7,387,187
|
3,267,654
|
44.23
|
|||||
|
Equity Investments
|
102,460
|
103,707
|
(1,247)
|
(1.20)
|
|||||
|
Available-for-sale securities
|
12,249,075
|
12,345,845
|
(96,770)
|
(0.78)
|
|||||
|
Held-to-maturity securities
|
11,745,509
|
10,490,167
|
1,255,342
|
11.97
|
|||||
|
Advances
|
110,240,342
|
92,306,684
|
17,933,658
|
19.43
|
|||||
|
Mortgage loans held-for-portfolio
|
2,689,469
|
2,644,449
|
45,020
|
1.70
|
|||||
|
Accrued interest receivable
|
591,649
|
523,973
|
67,676
|
12.92
|
|||||
|
Premises, software, and equipment
|
80,425
|
84,524
|
(4,099)
|
(4.85)
|
|||||
|
Operating lease right-of-use assets
|
42,941
|
44,289
|
(1,348)
|
(3.04)
|
|||||
|
Finance lease right-of-use assets
|
1,414
|
1,532
|
(118)
|
(7.70)
|
|||||
|
Derivative assets
|
62,933
|
99,548
|
(36,615)
|
(36.78)
|
|||||
|
Other assets
|
12,858
|
14,896
|
(2,038)
|
(13.68)
|
|||||
|
Total assets
|
$176,664,813
|
$156,544,993
|
$20,119,820
|
12.85
|
%
|
||||
|
Liabilities
|
|||||||||
|
Deposits
|
|||||||||
|
Interest-bearing demand
|
$1,904,823
|
$3,071,958
|
$(1,167,135)
|
(37.99)
|
%
|
||||
|
Non-interest-bearing demand
|
19,165
|
18,003
|
1,162
|
6.45
|
|||||
|
Total deposits
|
1,923,988
|
3,089,961
|
(1,165,973)
|
(37.73)
|
|||||
|
Consolidated obligations
|
|||||||||
|
Bonds
|
66,279,587
|
68,466,741
|
(2,187,154)
|
(3.19)
|
|||||
|
Discount notes
|
98,719,386
|
76,019,517
|
22,699,869
|
29.86
|
|||||
|
Total consolidated obligations
|
164,998,973
|
144,486,258
|
20,512,715
|
14.20
|
|||||
|
Mandatorily redeemable capital stock
|
7,737
|
7,585
|
2.00
|
||||||
|
Accrued interest payable
|
392,997
|
470,265
|
(77,268)
|
(16.43)
|
|||||
|
Affordable Housing Program
|
251,778
|
247,824
|
3,954
|
1.60
|
|||||
|
Derivative liabilities
|
23,935
|
4,097
|
19,838
|
484.21
|
|||||
|
Other liabilities
|
150,522
|
167,633
|
(17,111)
|
(10.21)
|
|||||
|
Operating lease liabilities
|
53,111
|
54,696
|
(1,585)
|
(2.90)
|
|||||
|
Finance lease liabilities
|
1,456
|
1,571
|
(115)
|
(7.32)
|
|||||
|
Total liabilities
|
167,804,497
|
148,529,890
|
19,274,607
|
12.98
|
|||||
|
Capital
|
8,860,316
|
8,015,103
|
845,213
|
10.55
|
|||||
|
Total liabilities and capital
|
$176,664,813
|
$156,544,993
|
$20,119,820
|
12.85
|
%
|
Balance Sheet overview March 31, 2026 and December 31, 2025
Total assets - Total assets increased to $176.7 billion at March 31, 2026, from $156.5 billion at December 31, 2025, an increase of
$20.1 billion, or 12.9%. Total assets increased primarily due to a $17.9 billion increase in advances, a $2.3 billion increase in federal
funds sold, and a $3.3 billion increase in trading securities, partially offset by a $5.0 billion decrease in securities purchased under
agreements to resell.
Advances - Par balances increased at March 31, 2026 to $110.5 billion, compared to $92.5 billion at December 31, 2025. Short-term
fixed-rate advances increased by 58.2% to $26.9 billion at March 31, 2026, up from $17.0 billion at December 31, 2025. ARC
advances, which are adjustable-rate borrowings, increased by 3.8% to $24.2 billion at March 31, 2026, compared to $23.3 billion at
December 31, 2025. The increase in advances was driven primarily by increased activity from two large banks, one insurance
company, and one credit union member.
Long-term investment debt securities - Long-term investment debt securities are designated as available-for-sale or held-to-
maturity. Our investment profile primarily consists of GSE and Agency-issued (GSE-issued) securities.
The AFS portfolio remained flat for the three months ended March 31, 2026.
The HTM portfolio increased by $1.3 billion, or 12.0%. We acquired $1.8 billion (par) of floating-rate GSE-issued MBS in the first
quarter of 2026.
Trading securities (liquidity portfolio) - The objective of the trading portfolio is to help meet short-term contingency liquidity needs.
During the current year period, we continued to invest in highly liquid U.S. Treasury securities. Trading investments are carried at fair
value, with changes recorded through earnings.
Trading securities increased by $3.3 billion, or 44.2% for the three months ended March 31, 2026.
We will periodically evaluate our liquidity needs and may add to or dispose these liquidity investments as deemed prudent based on
liquidity and market conditions. The Finance Agency prohibits speculative trading practices but allows permitted securities to be
deemed held for liquidity if invested in a trading portfolio.
Mortgage loans held-for-portfolio - Mortgage loans are investments in Mortgage Partnership Finance Program and Mortgage Asset
Program. Unpaid principal balance of MPF loans stood at $1.4 billion at March 31, 2026, a decrease of $32.1 million from the balance
at December 31, 2025. Loans are primarily fixed-rate, single-family mortgages acquired through the MPF Program. Unpaid principal
balance of MAP loans stood at $1.2 billion at March 31, 2026, an increase of $75.1 million from the balance at December 31, 2025.
Paydowns for the total portfolio for the three months ended March 31, 2026 were $67.5 million compared to $50.4 million for the
same period in 2025. Acquisitions for the three months ended March 31, 2026 were $114.4 million compared to $85.7 million for the
same period in 2025.
Total liabilities - Total liabilities increased to $167.8 billion at March 31, 2026, from $148.5 billion at December 31, 2025, an
increase of $19.3 billion, or 13.0%. Total liabilities increased primarily due to a $20.5 billion, or 14.2%, increase in consolidated
obligations as a result of increased funding and liquidity needs during the period.
Capital ratios - Our capital position remains strong. Actual risk-based capital was $8.9 billion and $8.0 billion for the period ending
March 31, 2026 and December 31, 2025, respectively. Required risk-based capital was $1.3 billion at March 31, 2026 and $1.1 billion
at December 31, 2025. To support $176.7 billion of total assets at March 31, 2026, the minimum required total capital was $7.1 billion
or 4.0% of assets. Our actual regulatory risk-based capital was $8.9 billion, exceeding required total capital by $1.8 billion. These
ratios have remained consistently above the required regulatory ratios through all periods in this report. For more information, see
financial statements,Note 14. Capital Stock and Mandatorily Redeemable Capital Stock.
Leverage - On March 31, 2026, balance sheet leverage (based on U.S. GAAP) was 19.9 times shareholders' equity, compared to
19.5 times at December 31, 2025. Balance sheet leverage has generally remained steady over the last several years, although from time
to time we have maintained excess liquidity in highly liquid investments, or cash balances at the Federal Reserve Bank of New York
(FRBNY) to meet unexpected member demand for funds. Increases or decreases in investments have a direct impact on leverage, but
generally growth in or shrinkage of advances does not significantly impact balance sheet leverage under existing capital stock
management practices. Members are required to purchase activity-based capital stock to support their borrowings from us, and when
activity-based capital stock is in excess of the amount that is required to support advance borrowings, we redeem the excess capital
stock immediately. Therefore, stockholders' capital increases and decreases with members' advance borrowings, and the capital to
asset ratio remains relatively unchanged.
Liquidity - Our liquidity position remains strong, and in compliance with all regulatory requirements, and we do not foresee any
changes to that position. In addition to the liquidity trading portfolio discussed previously, liquid assets at March 31, 2026 included
$20.2 million as demand cash balances at the FRBNY, $24.8 billion in short-term and overnight investments in the federal funds and
resale agreements, $10.0 billion of high credit quality GSE-issued available-for-sale securities that are investment grade and readily
marketable and $555.7 million of available-for-sale U.S. Treasury securities.
We also have other regulatory liquidity measures in place, including deposit liquidity and operational liquidity, and other liquidity
buffers.
For more information about the Advisory Bulletin and our liquidity measures, see section Liquidity, Cash Flows, Short-Term
Borrowings and Short-Term Debt, and Table 8.1 through Table 8.3 in this MD&A.
Advances
Carrying values of advances outstanding were $110.2 billion at March 31, 2026 and $92.3 billion at December 31, 2025. Carrying
values included cumulative hedging basis adjustment losses of $0.3 billion at March 31, 2026 and $0.1 billion at December 31, 2025.
Table 2.1 Advance Trends
Advances - Product Types
The following table summarizes par values of advances by product type (dollars in thousands):
Table 2.2 Advances by Product Type
|
March 31, 2026
|
December 31, 2025
|
||||||||
|
Amounts
|
Percentage
of Total
|
Amounts
|
Percentage
of Total
|
||||||
|
Adjustable Rate Credit - ARCs
|
$24,197,000
|
21.90
|
%
|
$23,317,000
|
25.22
|
%
|
|||
|
Fixed Rate Advances
|
55,469,821
|
50.20
|
46,988,911
|
50.81
|
|||||
|
Short-Term Advances
|
26,864,813
|
24.31
|
16,984,886
|
18.37
|
|||||
|
Mortgage Matched Advances
|
301,777
|
0.27
|
319,608
|
0.35
|
|||||
|
Overnight & Line of Credit (OLOC) Advances
|
1,992,115
|
1.80
|
3,036,265
|
3.28
|
|||||
|
All other categories
|
1,682,480
|
1.52
|
1,819,734
|
1.97
|
|||||
|
Total par value
|
110,508,006
|
100.00
|
%
|
92,466,404
|
100.00
|
%
|
|||
|
Advance discounts
|
(8,250)
|
(10,491)
|
|||||||
|
Hedge valuation basis adjustments
|
(259,414)
|
(149,229)
|
|||||||
|
Total
|
$110,240,342
|
$92,306,684
|
|||||||
Member Pledged Collateral
The following table summarizes pledged collateral (in thousands):
Table 2.3 Collateral Supporting Indebtedness to Members
|
Indebtedness
|
Collateral (a)
|
|||||||||||
|
Advances (b)
|
Other
Obligations (c)
|
Total
Indebtedness
|
Loans (d)
|
Securities and
Deposits (d)
|
Total (d)
|
|||||||
|
March 31, 2026
|
$110,508,006
|
$25,741,365
|
$136,249,371
|
$381,246,340
|
$74,881,972
|
$456,128,312
|
||||||
|
December 31, 2025
|
$92,466,404
|
$24,190,019
|
$116,656,423
|
$379,482,484
|
$66,900,291
|
$446,382,775
|
||||||
(a)The level of over-collateralization is on an aggregate basis and may not necessarily be indicative of a similar level of over-
collateralization on an individual member basis. At a minimum, each member pledged sufficient collateral to adequately secure
the member's outstanding obligation with the FHLBNY. In addition, most members maintain an excess amount of pledged
collateral with the FHLBNY to secure future liquidity needs.
(b)Par value.
(c)Standby financial letters of credit, derivatives, and members' credit enhancement guarantee amount.
(d)Estimated market value.
The following table shows the breakdown of collateral pledged by members between those in the physical possession of the FHLBNY
or its safekeeping agent, and those that were specifically listed (in thousands):
Table 2.4 Location of Collateral Held
|
Estimated Market Values
|
||||||
|
Collateral in
Physical
Possession
|
Collateral
Specifically Listed
|
Total Collateral
Received
|
||||
|
March 31, 2026
|
$75,653,442
|
$380,474,869
|
$456,128,312
|
|||
|
December 31, 2025
|
$68,180,070
|
$378,202,705
|
$446,382,775
|
|||
Advances - Interest Rate Terms
The following table summarizes interest-rate payment terms for advances (dollars in thousands):
Table 2.5 Advances by Interest-Rate Payment Terms
|
March 31, 2026
|
December 31, 2025
|
||||||||
|
Amounts
|
Percentage
of Total
|
Amounts
|
Percentage
of Total
|
||||||
|
Fixed-rate (a)
|
$85,593,006
|
77.45
|
%
|
$68,426,404
|
74.00
|
%
|
|||
|
Variable-rate (b)
|
24,915,000
|
22.55
|
24,040,000
|
26.00
|
|||||
|
Total par value
|
110,508,006
|
100.00
|
%
|
92,466,404
|
100.00
|
%
|
|||
|
Advance discounts
|
(8,250)
|
(10,491)
|
|||||||
|
Hedge valuation basis adjustments
|
(259,414)
|
(149,229)
|
|||||||
|
Total
|
$110,240,342
|
$92,306,684
|
|||||||
(a)Fixed-rate borrowings remained the largest category of advances borrowed by members and includes long-term and short-term
fixed-rate advances. Long-term advances remain a small segment of the portfolio at March 31, 2026, with only 1.8% of advances
in the remaining maturity bucket of greater than 5 years (2.1% at December 31, 2025). For more information, see financial
statements Note 9. Advances.
(b)Variable-rate advances are ARC advances are indexed to SOFR-OIS, Federal Funds-OIS or other benchmark indices. The
FHLBNY's larger members are generally borrowers of variable-rate advances.
The following table summarizes Redemption Term of advances (dollars in thousands):
Table 2.6 Advances by Redemption Term
|
March 31, 2026
|
December 31, 2025
|
Change
|
|||||||||||
|
Redemption Term (dollars in thousands)
|
Amount
|
Percentage
|
Amount
|
Percentage
|
Amount
|
Percentage
|
|||||||
|
Fixed-rate
|
|||||||||||||
|
Due in 1 year or less
|
$63,604,198
|
57.55
|
%
|
$44,984,380
|
48.65
|
%
|
$18,619,818
|
41.39
|
%
|
||||
|
Due after 1 year through 3 years
|
13,484,763
|
12.20
|
14,772,665
|
15.98
|
(1,287,902)
|
(8.72)
|
|||||||
|
Due after 3 years through 5 years
|
5,941,152
|
5.38
|
6,131,164
|
6.63
|
(190,012)
|
(3.10)
|
|||||||
|
Due after 5 years through 15 years
|
647,867
|
0.59
|
687,087
|
0.74
|
(39,220)
|
(5.71)
|
|||||||
|
Total principal amount
|
83,677,980
|
75.72
|
66,575,296
|
72.00
|
17,102,684
|
25.69
|
|||||||
|
Fixed-rate, putable
|
|||||||||||||
|
Due in 1 year or less
|
161,000
|
0.15
|
111,000
|
0.12
|
50,000
|
45.05
|
|||||||
|
Due after 1 year through 3 years
|
374,000
|
0.34
|
427,500
|
0.46
|
(53,500)
|
(12.51)
|
|||||||
|
Due after 3 years through 5 years
|
778,750
|
0.70
|
703,500
|
0.76
|
75,250
|
10.70
|
|||||||
|
Due after 5 years through 15 years
|
299,500
|
0.27
|
289,500
|
0.31
|
10,000
|
3.45
|
|||||||
|
Total principal amount
|
1,613,250
|
1.46
|
1,531,500
|
1.65
|
81,750
|
5.34
|
|||||||
|
Variable-rate
|
|||||||||||||
|
Due in 1 year or less
|
20,770,000
|
18.80
|
19,862,000
|
21.48
|
908,000
|
4.57
|
|||||||
|
Due after 1 year through 3 years
|
2,020,000
|
1.83
|
2,053,000
|
2.22
|
(33,000)
|
(1.61)
|
|||||||
|
Due after 3 years through 5 years
|
1,125,000
|
1.02
|
1,125,000
|
1.22
|
-
|
-
|
|||||||
|
Due after 5 years through 15 years
|
1,000,000
|
0.90
|
1,000,000
|
1.08
|
-
|
-
|
|||||||
|
Total principal amount
|
24,915,000
|
22.55
|
24,040,000
|
26.00
|
875,000
|
3.64
|
|||||||
|
Other (a)
|
|||||||||||||
|
Due in 1 year or less
|
76,974
|
0.07
|
76,228
|
0.08
|
0.98
|
||||||||
|
Due after 1 year through 3 years
|
216,273
|
0.19
|
208,261
|
0.23
|
8,012
|
3.85
|
|||||||
|
Due after 3 years through 5 years
|
6,579
|
0.01
|
33,116
|
0.04
|
(26,537)
|
(80.13)
|
|||||||
|
Due after 5 years through 15 years
|
1,950
|
-
|
2,003
|
-
|
(53)
|
(2.65)
|
|||||||
|
Total principal amount
|
301,776
|
0.27
|
319,608
|
0.35
|
(17,832)
|
(5.58)
|
|||||||
|
Total principal amount advances
|
110,508,006
|
100.00
|
%
|
92,466,404
|
100.00
|
%
|
18,041,602
|
19.51
|
%
|
||||
|
Other adjustments, net (b)
|
(267,664)
|
(159,720)
|
(107,944)
|
||||||||||
|
Total advances
|
$110,240,342
|
$92,306,684
|
$17,933,658
|
||||||||||
(a)Includes hybrid, fixed-rate amortizing/mortgage matched, convertible, fixed-rate callable or prepayable, and other advances.
(b)Consists of hedging valuation basis adjustments and unamortized premiums, discounts, and commitment fees.
Hedge volume - We hedge putable advances and certain "vanilla" fixed-rate advances under the hedge accounting provisions when
they qualify under those standards and as economic hedges when hedge effectiveness accounting provisions cannot be established.
The following table summarizes advances hedged under ASC 815 qualifying hedge by type of structure (in thousands):
Table 2.7 Hedged Advances by Type
|
Par Amount
|
March 31, 2026
|
December 31, 2025
|
||
|
Qualifying hedges
|
||||
|
Fixed-rate bullets
|
$57,772,995
|
$57,231,100
|
||
|
Fixed-rate putable
|
1,613,250
|
1,531,500
|
||
|
Fixed-rate with embedded cap
|
80,000
|
80,000
|
||
|
Total qualifying hedges
|
$59,466,245
|
$58,842,600
|
||
|
Aggregate par amount of advances hedged
|
$60,990,545
|
$59,309,100
|
||
|
Fair value basis (hedging adjustments)
|
$(259,414)
|
$(149,229)
|
Putable Advances - The following table summarizes par amounts of advances that were still putable or callable, with one or more
pre-determined option exercise dates remaining (in thousands):
Table 2.8 Putable and Callable Advances
|
Advances
|
||||
|
Par Amount
|
March 31, 2026
|
December 31, 2025
|
||
|
Putable
|
$1,613,250
|
$1,531,500
|
||
|
No-longer putable/callable
|
$271,000
|
$221,000
|
||
Investments
The following table summarizes changes in investments by categories: Interest-bearing deposits, Money market investments, Trading
securities, Equity investments in Grantor trusts, Available-for-sale securities, and Held-to-maturity securities (Carrying values, dollars
in thousands):
Table 3.1 Investments by Categories
|
March 31,
2026
|
December 31,
2025
|
Dollar
Variance
|
Percentage
Variance
|
||||||
|
State and local housing finance agency obligations, net (a)
|
|||||||||
|
Available-for-sale securities, at fair value
|
$1,666,714
|
$1,664,523
|
$2,191
|
0.13
|
%
|
||||
|
Held-to-maturity securities, at carrying value, net
|
151,054
|
151,604
|
(550)
|
(0.36)
|
|||||
|
Total HFA securities
|
1,817,768
|
1,816,127
|
1,641
|
0.09
|
|||||
|
U.S. Treasury notes, available-for-sale at fair value
|
555,733
|
560,272
|
(4,539)
|
(0.81)
|
|||||
|
Trading securities (b)
|
10,654,841
|
7,387,187
|
3,267,654
|
44.23
|
|||||
|
Mortgage-backed securities
|
|||||||||
|
Available-for-sale securities, at fair value
|
10,026,628
|
10,121,050
|
(94,422)
|
(0.93)
|
|||||
|
Held-to-maturity securities, at carrying value, net
|
11,594,455
|
10,338,563
|
1,255,892
|
12.15
|
|||||
|
Total MBS securities
|
21,621,083
|
20,459,613
|
1,161,470
|
5.68
|
|||||
|
Equity investments in Grantor trusts
|
102,460
|
103,707
|
(1,247)
|
(1.20)
|
|||||
|
Interest-bearing deposits
|
3,350,000
|
2,960,000
|
390,000
|
13.18
|
|||||
|
Securities purchased under agreements to resell
|
10,960,000
|
15,950,000
|
(4,990,000)
|
(31.29)
|
|||||
|
Federal funds sold
|
13,830,000
|
11,550,000
|
2,280,000
|
19.74
|
|||||
|
Total Investments
|
$62,891,885
|
$60,786,906
|
$2,104,979
|
3.46
|
%
|
(a)There were no acquisitions of State and local housing finance agency bonds for the three months ending March 31, 2026.
Paydowns from the HTM portfolio were $0.6 million and there were no paydowns from the AFS portfolio for the same period.
(b)We acquired $4.5 billion and sold $1.2 billion par of U.S. Treasury securities in the three months ended March 31, 2026.
The following table summarizes our investment debt securities issuer concentration (dollars in thousands):
Table 3.2 Investment Debt Securities Issuer Concentration
|
March 31, 2026
|
December 31, 2025
|
|||||||||||||
|
Long Term Investment (a)
|
Carrying (b)
Value
|
Fair value
|
Carrying value
as a Percentage
of Capital
|
Carrying (b)
Value
|
Fair Value
|
Carrying value
as a Percentage
of Capital
|
||||||||
|
MBS
|
||||||||||||||
|
Fannie Mae
|
$2,959,126
|
$2,955,759
|
33.40
|
%
|
$2,107,351
|
$2,106,342
|
26.29
|
%
|
||||||
|
Freddie Mac
|
18,657,139
|
18,540,657
|
210.57
|
18,347,280
|
18,247,320
|
228.91
|
||||||||
|
Ginnie Mae
|
4,817
|
4,817
|
0.05
|
4,982
|
4,982
|
0.06
|
||||||||
|
Non-MBS, net (c)
|
2,373,502
|
2,369,279
|
26.79
|
2,376,399
|
2,371,581
|
29.65
|
||||||||
|
Total Investment Debt Securities
|
$23,994,584
|
$23,870,512
|
270.81
|
%
|
$22,836,012
|
$22,730,225
|
284.91
|
%
|
||||||
|
Categorized as:
|
||||||||||||||
|
Available-for-Sale Securities
|
$12,249,075
|
$12,249,075
|
$12,345,845
|
$12,345,845
|
||||||||||
|
Held-to-Maturity Securities,
net
|
$11,745,509
|
$11,621,437
|
$10,490,167
|
$10,384,380
|
||||||||||
(a)Excludes Trading portfolio.
(b)Carrying values include fair values for AFS securities.
(c) Non-MBS - Includes Housing finance agency bonds and U.S. Government securities.
The following tables summarize external rating information of the held-to-maturity portfolio (carrying values in thousands):
Table 3.3 External Rating of the Held-to-Maturity Portfolio
|
March 31, 2026
|
||||||||||||
|
AAA-rated
|
AA-rated
|
A-rated
|
BBB-rated
|
Below
Investment
Grade
|
Total
|
|||||||
|
Mortgage-backed securities
|
$-
|
$11,594,455
|
$-
|
$-
|
$-
|
$11,594,454
|
||||||
|
State and local housing finance agency
obligations
|
-
|
151,054
|
-
|
-
|
-
|
151,054
|
||||||
|
Total Long-term securities
|
$-
|
$11,745,509
|
$-
|
$-
|
$-
|
$11,745,509
|
||||||
|
December 31, 2025
|
||||||||||||
|
AAA-rated
|
AA-rated
|
A-rated
|
BBB-rated
|
Below
Investment
Grade
|
Total
|
|||||||
|
Mortgage-backed securities
|
$-
|
$10,338,563
|
$-
|
$-
|
$-
|
$10,338,563
|
||||||
|
State and local housing finance agency
obligations
|
-
|
151,604
|
-
|
-
|
-
|
151,604
|
||||||
|
Total Long-term securities
|
$-
|
$10,490,167
|
$-
|
$-
|
$-
|
$10,490,167
|
||||||
The following tables summarize external rating information of the AFS portfolio (the carrying values of AFS investments are at fair
values; in thousands):
Table 3.4 External Rating of the Available-for-Sale Portfolio
|
March 31, 2026
|
||||||||||||
|
AAA-rated
|
AA-rated
|
A-rated
|
BBB-rated
|
Below
Investment
Grade
|
Total
|
|||||||
|
Mortgage-backed securities
|
$-
|
$10,026,628
|
$-
|
$-
|
$-
|
$10,026,628
|
||||||
|
Housing and U.S. Obligations
|
154,833
|
2,067,614
|
-
|
-
|
-
|
2,222,447
|
||||||
|
Total Long-term securities
|
$154,833
|
$12,094,242
|
$-
|
$-
|
$-
|
$12,249,075
|
||||||
|
December 31, 2025
|
||||||||||||
|
AAA-rated
|
AA-rated
|
A-rated
|
BBB-rated
|
Below
Investment
Grade
|
Total
|
|||||||
|
Mortgage-backed securities
|
$-
|
$10,121,050
|
$-
|
$-
|
$-
|
$10,121,050
|
||||||
|
Housing and U.S. Obligations
|
154,129
|
2,070,666
|
-
|
-
|
-
|
2,224,795
|
||||||
|
Total Long-term securities
|
$154,129
|
$12,191,716
|
$-
|
$-
|
$-
|
$12,345,845
|
||||||
Weighted average rates - Mortgage-backed securities (HTM and AFS) - The following table summarizes weighted average rates
(yields) and amortized cost by contractual maturities (dollars in thousands):
Table 3.5 Mortgage-Backed Securities Weighted Average Rates by Contractual Maturities
|
March 31, 2026
|
December 31, 2025
|
|||||||||
|
Amortized
Cost
|
Weighted
Average Rate (a)
|
Amortized
Cost
|
Weighted
Average Rate (a)
|
|||||||
|
Mortgage-backed securities
|
||||||||||
|
Due in one year or less
|
$1,539,471
|
2.85
|
%
|
$1,407,215
|
3.04
|
%
|
||||
|
Due after one year through five years
|
6,798,971
|
3.13
|
6,914,188
|
3.21
|
||||||
|
Due after five years through ten years
|
7,803,577
|
3.70
|
8,230,958
|
3.69
|
||||||
|
Due after ten years
|
5,533,813
|
4.33
|
3,940,067
|
4.43
|
||||||
|
Total Mortgage-backed securities
|
$21,675,832
|
3.62
|
%
|
$20,492,428
|
3.62
|
%
|
||||
(a)Average yields are derived by dividing interest income by the average amortized cost balances of the related maturity bucket.
A significant portion of the MBS portfolio consists of floating-rate securities and the weighted average rates will change in tandem
with changes in the SOFR-OIS.
Fair Value Hedges of Fixed-rate Available-for-sale Mortgage-backed Securities
The Bank has adopted the partial-term hedging guidance within ASC 815, Derivatives and Hedging. This guidance allows the hedging
of only the benchmark interest rate component, rather than the entire coupon, for fixed-rate instruments in a fair value hedge. The
Bank has applied this guidance to hedge designated available-for-sale fixed-rate CMBS. The following table summarizes key data (in
thousands):
Table 3.6 Fair Value Hedges of Fixed-Rate Prepayable CMBS
|
Fair Value Hedges of Fixed-Rate Prepayable CMBS
|
||||||
|
March 31, 2026
|
December 31, 2025
|
|||||
|
Current face value of hedged CMBS
|
$8,800,492
|
$8,800,492
|
||||
|
Partial-term hedge face value of hedged CMBS
|
$7,985,000
|
$7,985,000
|
||||
|
Cumulative basis adjustment gains (losses) (a)
|
$(391,188)
|
$(363,915)
|
||||
|
Interest rate swap contracts (par)
|
$7,985,000
|
$7,985,000
|
||||
(a)Cumulative basis adjustment gains (losses) at March 31, 2026 and December 31, 2025 included immaterial balances of
unamortized basis as a result of de-designation hedges.
Short-term investments
The following table summarizes par value, amortized cost and the carrying value (fair value) of the trading portfolio (in thousands):
Table 3.7 Trading Securities
|
Trading Securities
|
||||
|
March 31, 2026
|
December 31, 2025
|
|||
|
Par value
|
$10,800,925
|
$7,550,925
|
||
|
Amortized cost
|
$10,785,108
|
$7,483,249
|
||
|
Carrying/Fair value
|
$10,654,841
|
$7,387,187
|
||
The following table summarizes economic hedges of fixed-rate trading securities held for liquidity (in thousands):
Table 3.8 Economic Hedges of Fixed-rate Liquidity Trading Securities
|
Economic Hedges of Fixed-Rate
|
||||
|
Trading Securities
|
||||
|
March 31, 2026
|
December 31, 2025
|
|||
|
Par/Face amounts of portfolio of U.S. Treasury fixed-rate securities (a)
|
$10,800,925
|
$7,550,925
|
||
|
Par amounts of interest rate swaps
|
$10,783,936
|
$7,523,057
|
||
(a)Balances represent outstanding amounts of U.S. Treasury securities.
Mortgage Loans Held-for-Portfolio, Net
Mortgage loans are carried in the Statements of Condition at amortized cost, less allowance for credit losses. The outstanding unpaid
principal balance was $2.6 billion at March 31, 2026, an increase of $43.0 million (net of acquisitions and paydowns) from the balance
at December 31, 2025. Mortgage loan balances increased due to an increase in acquisitions. During 2026, the Bank purchased $114.4
million of mortgage loans from members and paydowns were $67.5 million. Mortgage loans were investments in MPF and MAP.
Serious delinquencies at March 31, 2026 were slightly higher than December 31, 2025. Allowance for credit losses were $3.9 million
at March 31, 2026 compared to $3.7 million at December 31, 2025.
Loan and PFI Concentration - Loan concentration was in New York State, as many of the largest PFIs are located in New York. The
tables below summarize concentrations - Geographic and PFI.
Table 4.1 Geographic Concentration of Mortgage Loans
|
March 31, 2026
|
December 31, 2025
|
||||||||
|
Number of
loans
|
Amounts
outstanding
|
Number of
loans
|
Amounts
outstanding
|
||||||
|
New York State
|
69.7
|
%
|
63.4
|
%
|
69.2
|
%
|
62.3
|
%
|
|
|
New Jersey State
|
19.8
|
%
|
24.3
|
%
|
20.3
|
%
|
25.4
|
%
|
|
Table 4.2 Top Five Participating Financial Institutions - Concentration (par value, dollars in thousands):
|
March 31, 2026
|
|||||
|
Mortgage Loans
|
Percent of Total
Mortgage Loans
|
||||
|
OceanFirst Bank
|
$265,906
|
10.06
|
%
|
||
|
The Lyons National Bank
|
237,297
|
8.98
|
|||
|
FourLeaf Federal Credit Union
|
229,777
|
8.70
|
|||
|
Teachers Federal Credit Union
|
162,338
|
6.14
|
|||
|
Manasquan Bank
|
124,287
|
4.70
|
|||
|
All Others
|
1,622,540
|
61.42
|
|||
|
Total
|
$2,642,145
|
100.00
|
%
|
||
|
December 31, 2025
|
|||||
|
Mortgage Loans
|
Percent of Total
Mortgage Loans
|
||||
|
OceanFirst Bank
|
$276,575
|
10.64
|
%
|
||
|
The Lyons National Bank
|
205,238
|
7.90
|
|||
|
Teachers Federal Credit Union
|
160,259
|
6.17
|
|||
|
Manasquan Bank
|
125,701
|
4.84
|
|||
|
FourLeaf Federal Credit Union
|
119,448
|
4.60
|
|||
|
All Others
|
1,711,936
|
65.85
|
|||
|
Total
|
$2,599,157
|
100.00
|
%
|
||
Debt Financing Activity and Consolidated Obligations
Our primary source of funds continues to be the issuance of Consolidated obligation bonds and discount notes. In aggregate, carrying
balances of CO bonds and CO discount notes were $165.0 billion and $144.5 billion at March 31, 2026 and December 31, 2025,
respectively.
CO bonds and CO discount notes - The carrying value of Consolidated obligation bonds was $66.3 billion (par, $66.3 billion) at
March 31, 2026, compared to $68.5 billion (par, $68.4 billion) at December 31, 2025. The carrying value of Consolidated obligation
discount notes outstanding was $98.7 billion at March 31, 2026 and $76.0 billion at December 31, 2025.
Debt Ratings - A FHLBank's ability to access the capital markets to issue debt, as well as our cost of funds, is dependent on credit
ratings from Nationally Recognized Statistical Rating Organizations. Consolidated obligations of FHLBanks are rated Aa1/P-1 by
Moody's Ratings (Moody's), and AA+/A-1+ by S&P.
Joint and Several Liability - Although we are primarily liable for our portion of Consolidated obligations (i.e. those issued on our
behalf), we are also jointly and severally liable with the other FHLBanks for the payment of principal and interest on the Consolidated
obligations of all the FHLBanks. For more information, see financial statements, Note 19. Commitments and Contingencies.
Consolidated obligation bonds
The following table summarizes types of Consolidated obligation bonds (CO Bonds) issued and outstanding (dollars in thousands):
Table 5.1 CO Bonds by Type
|
March 31, 2026
|
December 31, 2025
|
||||||||
|
Amount
|
Percentage
of Total
|
Amount
|
Percentage
of Total
|
||||||
|
Fixed-rate, non-callable
|
$15,872,165
|
23.96
|
%
|
$22,142,355
|
32.37
|
%
|
|||
|
Fixed-rate, callable
|
17,611,800
|
26.58
|
15,927,800
|
23.28
|
|||||
|
Step Up, callable
|
750,000
|
1.13
|
1,132,000
|
1.65
|
|||||
|
Step Down, callable
|
52,000
|
0.08
|
52,000
|
0.08
|
|||||
|
Floating rate, callable
|
25,000
|
0.04
|
25,000
|
0.04
|
|||||
|
Single-index floating rate
|
31,942,000
|
48.21
|
29,129,500
|
42.58
|
|||||
|
Total par value
|
$66,252,965
|
100.00
|
%
|
$68,408,655
|
100.00
|
%
|
|||
|
Bond premiums
|
37,977
|
42,461
|
|||||||
|
Bond discounts
|
(17,102)
|
(18,008)
|
|||||||
|
Hedge valuation basis adjustments (a)
|
(81,304)
|
(51,438)
|
|||||||
|
Hedge basis adjustments on de-designated hedges
|
90,710
|
92,610
|
|||||||
|
FVO - valuation adjustments and accrued interest
|
(3,659)
|
(7,539)
|
|||||||
|
Total Consolidated obligation bonds
|
$66,279,587
|
$68,466,741
|
|||||||
.
(a)Hedging valuation basis adjustments - The application of ASC 815 accounting methodology resulted in the recognition of net
cumulative hedge valuation basis gains of $0.1 billion at March 31, 2026 and $0.1 billion at December 31, 2025. Generally,
hedge valuation basis gains and losses are unrealized and are expected to reverse to zero if the CO bonds are held to maturity or
are called on the early option exercise dates.
Fair value basis and valuation adjustments - Key determinants are factors such as run-offs and new transactions designated under
an ASC 815 hedge or elected under the FVO, the forward swap curve, the volatility of the swap rates, and the remaining duration to
maturity. For CO bonds elected under the FVO, the changes in the spread between the swap rate and the Consolidated obligation
debt yields, and changes in interest payable, which is also a component of the entire fair value of FVO CO bonds.
Hedge volume - Tables 5.2 - 5.4 provide information with respect to par amounts of CO bonds based on accounting designation:
(1) under hedge qualifying rules; (2) under the FVO; and (3) as an economic hedge.
Qualifying hedges - Generally, fixed-rate (bullet and callable) medium and long-term Consolidated obligation bonds are hedged in a
fair value ASC 815 qualifying hedge.
The following table provides information on CO bonds in an ASC 815 qualifying hedge relationship (in thousands):
Table 5.2 CO Bonds Hedged under Qualifying Fair Value Hedges
|
Consolidated Obligation Bonds
|
||||
|
Par Amount
|
March 31, 2026
|
December 31, 2025
|
||
|
Qualifying hedges
|
||||
|
Fixed-rate bullet bonds
|
$9,563,840
|
$14,739,580
|
||
|
Fixed-rate callable bonds
|
15,857,800
|
15,509,800
|
||
|
Total qualifying fair value hedges
|
$25,421,640
|
$30,249,380
|
||
The following table provides information on CO bonds elected under the fair value option (in thousands):
Table 5.3 CO Bonds Elected under the Fair Value Option (FVO)
|
Consolidated Obligation Bonds
|
||||
|
Par Amount
|
March 31, 2026
|
December 31, 2025
|
||
|
Bonds designated under FVO
|
$529,405
|
$564,405
|
||
The following table provides information on CO bonds in an economic hedge relationship (in thousands):
Table 5.4 Economic Hedges of CO Bonds (data in table excludes CO bonds elected under the FVO)
|
Consolidated Obligation Bonds
|
||||
|
Par Amount
|
March 31, 2026
|
December 31, 2025
|
||
|
Bonds designated as economically hedged
|
||||
|
Floating-rate bonds
|
$20,000
|
$-
|
||
|
Fixed-rate bonds
|
$200,000
|
$200,000
|
||
CO Bonds - Maturity or Next Call Date
Callable bonds contain an exercise date or a series of exercise dates that may result in a shorter redemption period. The following table
summarizes par amounts of Consolidated bonds outstanding by years to maturity or next call date (dollars in thousands):
Table 5.5 CO Bonds - Maturity or Next Call Date
|
March 31, 2026
|
December 31, 2025
|
||||||||
|
Amount
|
Percentage of
Total
|
Amount
|
Percentage of
Total
|
||||||
|
Year of maturity or next call date (a)
|
|||||||||
|
Due or callable in one year or less
|
$50,793,875
|
76.67
|
%
|
$49,083,920
|
71.75
|
%
|
|||
|
Due or callable after one year through two years
|
8,788,170
|
13.26
|
12,350,470
|
18.05
|
|||||
|
Due or callable after two years through three years
|
3,877,775
|
5.85
|
3,870,565
|
5.66
|
|||||
|
Due or callable after three years through four years
|
766,795
|
1.16
|
1,115,850
|
1.63
|
|||||
|
Due or callable after four years through five years
|
350,950
|
0.53
|
292,450
|
0.43
|
|||||
|
Thereafter
|
1,675,400
|
2.53
|
1,695,400
|
2.48
|
|||||
|
Total par value
|
$66,252,965
|
100.00
|
%
|
$68,408,655
|
100.00
|
%
|
|||
(a)Contrasting Consolidated obligation bonds by contractual maturity dates (see financial statements,Note 12. Consolidated
Obligations - Redemption Terms of Consolidated Obligation Bonds) with potential call dates (as reported in table above)
illustrates the impact of hedging on the effective duration of the bond. With a callable bond, we have purchased the option to
terminate debt at agreed upon dates from investors. The call options are exercisable as either a one-time option or quarterly. Our
current practice is to exercise our option to call a bond when the swap counterparty exercises its option to call the cancellable
swap hedging the callable bond. Thus, issuance of a callable bond with an associated callable swap significantly alters the
contractual maturity characteristics of the original bond and introduces the possibility of an exercise call date that is significantly
shorter than the contractual maturity.
The following table summarizes callable bonds versus non-callable CO bonds outstanding (par amounts, in thousands):
Table 5.6 Outstanding Callable CO Bonds versus Non-callable CO bonds
|
March 31, 2026
|
December 31, 2025
|
||
|
Callable
|
$18,438,800
|
$17,136,800
|
|
|
Non-Callable
|
$47,814,165
|
$51,271,855
|
CO Discount Notes
The following table summarizes CO discount notes issued and outstanding (dollars in thousands):
Table 5.7 Discount Notes Outstanding
|
March 31, 2026
|
December 31, 2025
|
|||
|
Par value
|
$99,621,356
|
$76,476,004
|
||
|
Amortized cost
|
$98,741,656
|
$76,011,550
|
||
|
Hedge value basis adjustments (a)
|
(36,206)
|
(7,377)
|
||
|
Hedge basis adjustments on de-designated hedges
|
(282)
|
(107)
|
||
|
FVO - valuation adjustments and remaining accretion
|
14,218
|
15,451
|
||
|
Total Consolidated obligation discount notes
|
$98,719,386
|
$76,019,517
|
||
|
Weighted average interest rate
|
3.57
|
%
|
3.76
|
%
|
(a)Notional amounts of $82.9 billion and $69.8 billion were hedged under ASC 815 qualifying fair value hedges at March 31, 2026
and December 31, 2025, respectively.
The following table summarizes Fair Value hedges of discount notes (in thousands):
Table 5.8 Fair Value Hedges of Discount Notes
|
Consolidated Obligation Discount Notes
|
||||
|
Principal Amount
|
March 31, 2026
|
December 31, 2025
|
||
|
Discount notes hedged under qualifying hedge
|
$82,942,599
|
$69,840,769
|
||
The following table summarizes economic hedges of discount notes (in thousands):
Table 5.9 Economic Hedges of Discount Notes
|
Consolidated Obligation Discount Notes
|
||||
|
Par Amount
|
March 31, 2026
|
December 31, 2025
|
||
|
Discount notes designated as economic hedges
|
$2,541,354
|
$1,581,960
|
||
The following table summarizes discount notes elected and outstanding under the FVO (in thousands):
Table 5.10 Discount Notes under the Fair Value Option (FVO)
|
Consolidated Obligation Discount Notes
|
||||
|
Par Amount
|
March 31, 2026
|
December 31, 2025
|
||
|
Discount notes designated under FVO
|
$5,295,389
|
$562,507
|
||
The following table summarizes Cash flow hedges of discount notes (in thousands):
Table 5.11 Cash Flow Hedges of Discount Notes
|
Consolidated Obligation Discount Notes
|
||||
|
Principal Amount
|
March 31, 2026
|
December 31, 2025
|
||
|
Discount notes hedged under qualifying hedge (a)
|
$1,367,000
|
$1,367,000
|
||
(a)Amounts represent discounts notes issued in cash flow "rollover" hedge strategies that hedged the variability of 91-day discount
notes issued in sequence. The maximum length of time over which we are hedging this exposure is 6 years. In this strategy, the
discount note expense, which resets every 91 days, is synthetically converted to fixed cash flows over the hedge periods, thereby
achieving hedge objectives. For more information, see financial statements, Cash flow hedge gains and losses in Note 17.
Derivatives and Hedging Activities.
Stockholders' Capital
The following table summarizes the components of Stockholders' capital (in thousands):
Table 6.1 Stockholders' Capital
|
March 31, 2026
|
December 31, 2025
|
|||
|
Capital Stock (a)
|
$6,227,676
|
$5,411,075
|
||
|
Unrestricted retained earnings (b)
|
1,306,426
|
1,286,417
|
||
|
Restricted retained earnings (c)
|
1,359,499
|
1,328,728
|
||
|
Accumulated other comprehensive income (loss)
|
(33,285)
|
(11,117)
|
||
|
Total Capital
|
$8,860,316
|
$8,015,103
|
(a)Stockholders' Capital - Capital stock increased in line with the increase in advances borrowed. When an advance matures or is
prepaid, the excess capital stock is repurchased by the FHLBNY. When an advance is borrowed or a member joins the FHLBNY's
membership, the member is required to purchase capital stock.
(b)Unrestricted retained earnings - Net income is added to this balance. Dividends are paid out of this balance. Funds are
transferred to Restricted retained earnings balances as mandated by the FHLBank Joint Capital Enhancement Agreement
(Capital Agreement).
(c)Restricted retained earnings - Restricted retained earnings balance at March 31, 2026 has grown to $1.4 billion from the time
the provisions were implemented in 2011 when the FHLBanks, including the FHLBNY, agreed to set up a restricted retained
earnings account. The FHLBNY will allocate at least 20% of its net income to the FHLBNY's Restricted retained earnings
account until the balance of the account equals at least 1% of FHLBNY's average balance of outstanding Consolidated
obligations for the current calendar quarter. By way of reference, the Restricted retained earnings target calculated at March 31,
2026 was $1.5 billion based on the FHLBNY's average consolidated obligations outstanding during the current calendar quarter,
as compared to actual Restricted retained earnings of $1.4 billion at March 31, 2026. Also see Note 14. Capital Stock and
Mandatorily Redeemable Capital Stock.
The following table summarizes the components of AOCI (in thousands):
Table 6.2 Accumulated Other Comprehensive Income (Loss) (AOCI)
|
March 31, 2026
|
December 31, 2025
|
|||
|
Accumulated other comprehensive income (loss)
|
||||
|
Net market value unrealized gains (losses) on available-for-sale securities
|
$(446,268)
|
$(395,395)
|
||
|
Net Fair value hedging gains (losses) on available-for-sale securities
|
391,188
|
363,915
|
||
|
Net Cash flow hedging gains (losses)
|
31,044
|
29,734
|
||
|
Employee supplemental retirement plans
|
(9,249)
|
(9,371)
|
||
|
Total Accumulated other comprehensive income (loss)
|
$(33,285)
|
$(11,117)
|
The following table summarizes dividends paid and payout ratios:
Table 6.3 Dividends Paid and Payout Ratios
|
Three months ended
|
||||
|
March 31, 2026
|
March 31, 2025
|
|||
|
Cash dividends paid per share
|
$1.92
|
$2.33
|
||
|
Dividends paid (a)(c)
|
$103,077
|
$138,364
|
||
|
Pay-out ratio (b)
|
67.00
|
%
|
88.89
|
%
|
(a)In thousands.
(b)Dividend paid during the period divided by net income for the period.
(c)Does not include dividends paid to non-members; for accounting purposes, such dividends are recorded as interest expense.
Derivative Instruments and Hedging Activities
The following tables summarize notional amounts and fair values for the FHLBNY's derivative exposures as represented by
derivatives in fair value gain positions (in thousands):
Table 7.1 Derivatives Counterparty Credit Ratings
|
March 31, 2026
|
||||||||||||
|
Credit Rating
|
Notional Amount
|
Net Derivatives
Fair Value
Before
Collateral
|
Cash Collateral
Pledged To (From)
Counterparties (a)
|
Balance Sheet Net
Credit Exposure
|
Non-
Cash Collateral
Pledged To (From)
Counterparties (b)
|
Net Credit
Exposure to
Counterparties
|
||||||
|
Non-member counterparties
|
||||||||||||
|
Asset positions with credit
exposure
|
||||||||||||
|
Uncleared derivatives
|
||||||||||||
|
Single A asset (c)
|
$7,305,000
|
$58,394
|
$2,800
|
$61,194
|
$(48,180)
|
$13,014
|
||||||
|
Cleared derivatives assets (d)
|
414,657
|
1,074
|
-
|
1,074
|
31,288
|
32,362
|
||||||
|
7,719,657
|
59,468
|
2,800
|
62,268
|
(16,892)
|
45,376
|
|||||||
|
Liability positions with credit
exposure
|
||||||||||||
|
Uncleared derivatives
|
||||||||||||
|
Single A liability (c)
|
900,000
|
(15,485)
|
16,150
|
-
|
||||||||
|
Cleared derivatives liability (d)
|
180,128,161
|
-
|
-
|
-
|
813,411
|
813,411
|
||||||
|
181,028,161
|
(15,485)
|
16,150
|
813,411
|
814,076
|
||||||||
|
Total derivative positions with
non-member counterparties to
which the Bank had credit
exposure
|
188,747,818
|
43,983
|
18,950
|
62,933
|
796,519
|
859,452
|
||||||
|
Delivery commitments
|
||||||||||||
|
Derivative position with
delivery commitments
|
32,237
|
-
|
-
|
-
|
-
|
-
|
||||||
|
Total derivative position with
members
|
32,237
|
-
|
-
|
-
|
-
|
-
|
||||||
|
Total
|
$188,780,055
|
$43,983
|
$18,950
|
$62,933
|
$796,519
|
$859,452
|
||||||
|
Derivative positions without credit
exposure
|
$28,997,287
|
|||||||||||
|
Total notional amount
|
$217,745,105
|
|||||||||||
|
December 31, 2025
|
||||||||||||
|
Credit Rating
|
Notional Amount
|
Net Derivatives
Fair Value
Before
Collateral
|
Cash Collateral
Pledged To (From)
Counterparties (a)
|
Balance Sheet Net
Credit Exposure
|
Non-
Cash Collateral
Pledged To (From)
Counterparties (b)
|
Net Credit
Exposure to
Counterparties
|
||||||
|
Non-member counterparties
|
||||||||||||
|
Asset positions with credit
exposure
|
||||||||||||
|
Uncleared derivatives
|
||||||||||||
|
Single A asset (c)
|
$9,437,250
|
$53,873
|
$12,620
|
$66,493
|
$(55,758)
|
$10,735
|
||||||
|
Cleared derivatives assets (d)
|
159,123,222
|
31,982
|
-
|
31,982
|
813,135
|
845,117
|
||||||
|
168,560,472
|
85,855
|
12,620
|
98,475
|
757,377
|
855,852
|
|||||||
|
Liability positions with credit
exposure
|
||||||||||||
|
Uncleared derivatives
|
||||||||||||
|
Single A liability (c)
|
4,530,550
|
(24,300)
|
25,300
|
1,000
|
-
|
1,000
|
||||||
|
Cleared derivatives liability (d)
|
414,657
|
-
|
-
|
-
|
32,443
|
32,443
|
||||||
|
4,945,207
|
(24,300)
|
25,300
|
1,000
|
32,443
|
33,443
|
|||||||
|
Total derivative positions with
non-member counterparties to
which the Bank had credit
exposure
|
173,505,679
|
61,555
|
37,920
|
99,475
|
789,820
|
889,295
|
||||||
|
Delivery commitments
|
||||||||||||
|
Derivative position with
delivery commitments
|
36,458
|
-
|
(73)
|
-
|
||||||||
|
Total derivative position with
members
|
36,458
|
-
|
(73)
|
-
|
||||||||
|
Total
|
$173,542,137
|
$61,628
|
$37,920
|
$99,548
|
$789,747
|
$889,295
|
||||||
|
Derivative positions without credit
exposure
|
$25,349,958
|
|||||||||||
|
Total notional amount
|
$198,855,637
|
|||||||||||
(a)When collateral is posted to counterparties in excess of fair value liabilities that are due to counterparties, the excess collateral is
classified as a component of derivative assets, as the excess represents a receivable and an exposure for the FHLBNY.
(b)Non-cash collateral securities. Non-cash collateral was not deducted from net derivative assets on the balance sheet as control
over the securities was not transferred.
(c)NRSRO Ratings.
(d)On cleared derivatives, we are required to pledge initial margin (considered as collateral) to Derivative Clearing Organizations
(DCOs) in cash or securities. We had pledged $844.7 million and $845.6 million in marketable securities as collateral at
March 31, 2026 and December 31, 2025, respectively. At March 31, 2026 and December 31, 2025 we did not pledge cash as
collateral.
Liquidity, Cash Flows, Short-Term Borrowings and Short-Term Debt
Our liquidity position remains in compliance with all regulatory requirements and management does not foresee any changes to that
position.
Finance Agency Regulations - Liquidity
Regulatory requirements are specified in 12 CFR Parts 1239, 1270 and 1277 of the Finance Agency regulations and Advisory Bulletin
2018-07. Each FHLBank shall at all times have at least an amount of liquidity equal to the current deposits received from its members
that may be invested in: (1) Obligations of the United States; (2) Deposits in banks or trust companies; and (3) Advances with a
remaining maturity not to exceed five years that are made to members in conformity with Part 1266. We are required to hold positive
cash flow assuming no access to capital markets and assuming renewal of all maturing advances for a period of between ten to thirty
calendar days and to maintain liquidity limits to reduce the risks associated with a mismatch in asset and liability maturities, including
an undue reliance on short-term debt funding.
In addition, the Bank provides for Contingency Liquidity, which is defined as the sources of cash the Bank may use to meet its
operational requirements when its access to the capital markets is impeded. We met our Contingency Liquidity requirements during all
periods in this report. Liquidity in excess of requirements is summarized in the table titled Contingency Liquidity.
Liquidity Management
We actively manage our liquidity position to maintain stable, reliable, and cost-effective sources of funds while taking into account
market conditions, member demand and the maturity profile of our assets and liabilities. We recognize that managing liquidity is
critical to achieving our statutory mission of providing low-cost ready liquidity to our members. In managing liquidity risk, we are
required to maintain certain liquidity measures in accordance with the FHLBank Act, an Advisory Bulletin and policies developed by
management and approved by our Board of Directors. Our policies are designed to support the Bank's ability to provide prompt, on-
demand liquidity to our members without the immediate need to access the Consolidated obligation debt markets.
The applicable liquidity requirements are described in the next four sections.
Deposit Liquidity. We are required to invest an aggregate amount at least equal to the amount of current deposits received from
members in: (1) Obligations of the United States; (2) Deposits in banks or trust companies; or (3) Advances with a remaining maturity
not to exceed five years that are made to members in conformity with 12 CFR Part 1266. In addition to accepting deposits from our
members, we may accept deposits from other FHLBanks or from any other governmental instrumentality. We met these requirements
at all times. Quarterly average reserves and actual reserves are summarized below (in millions):
Table 8.1 Deposit Liquidity
|
For the Quarters Ended
|
Average Deposit
Reserve Required
|
Average Actual
Deposit Liquidity
|
Excess
|
|||
|
March 31, 2026
|
$2,485
|
$100,936
|
$98,451
|
|||
|
December 31, 2025
|
$2,886
|
$89,905
|
$87,019
|
Operational Liquidity. We must be able to fund our activities as our balance sheet changes from day-to-day. We maintain the capacity
to fund balance sheet growth through regular money market and capital market funding and investment activities. We monitor our
operational liquidity needs by regularly comparing our demonstrated funding capacity with potential balance sheet growth. We take
such actions as may be necessary to maintain adequate sources of funding for such growth. Operational liquidity is measured daily.
We met these requirements at all times.
The following table summarizes excess operational liquidity (in millions):
Table 8.2 Operational Liquidity
|
For the Quarters Ended
|
Average Balance Sheet
Liquidity Requirement
|
Average Actual
Operational Liquidity
|
Excess
|
|||
|
March 31, 2026
|
$24,495
|
$50,476
|
$25,981
|
|||
|
December 31, 2025
|
$24,437
|
$48,370
|
$23,933
|
Contingency Liquidity. The Bank holds "contingency liquidity" in an amount sufficient to meet our liquidity needs if we are unable to
access the Consolidated obligation debt markets for at least five business days. Contingency liquidity includes: (1) marketable assets
with a maturity of one year or less; (2) self-liquidating assets with a maturity of one year or less; (3) assets that are generally
acceptable as collateral in the repurchase market; and (4) irrevocable lines of credit from financial institutions receiving not less than
the second-highest credit rating from a NRSRO. We consistently exceed the minimum requirements for contingency liquidity.
Contingency liquidity is measured daily. We met these requirements at all times.
The following table summarizes excess contingency liquidity (in millions):
Table 8.3 Contingency Liquidity
|
For the Quarters Ended
|
Average Five Day
Requirement
|
Average Actual
Contingency Liquidity
|
Excess
|
|||
|
March 31, 2026
|
$4,293
|
$48,491
|
$44,198
|
|||
|
December 31, 2025
|
$3,279
|
$44,267
|
$40,988
|
The Liquidity standards in our risk management policy address our day-to-day operational and contingency liquidity needs. These
standards enumerate the specific types of investments to be held to satisfy such liquidity needs and are outlined above. These
standards also establish the methodology to be used in determining our operational and contingency needs. We continually monitor
and project our cash needs, daily debt issuance capacity, and the amount and value of investments available for use in the market for
repurchase agreements. We use this information to determine our liquidity needs and to develop appropriate liquidity plans.
The Finance Agency's Liquidity Advisory Bulletin 2018-07 requires the Bank to maintain between 10 and 30 calendar days ("the
Range") of positive cash flow assuming all advances renew and to hold liquidity in a specified range of the notional of our outstanding
standby financial letters of credit. The FHFA has periodically issued non-public supervisory letters that establish base case guidance
within the Range. The Advisory Bulletin also provides guidance on maintaining appropriate funding gaps for three-month and one-
year maturity horizons. We remained in compliance with the funding gaps provision and all Liquidity regulations.
Other Liquidity Contingencies. As discussed more fully under the section Debt Financing Activity and Consolidated Obligations, we
are primarily liable for Consolidated obligations issued on our behalf. We are also jointly and severally liable with the other
FHLBanks for the payment of principal and interest on the Consolidated obligations of all the FHLBanks. If the principal or interest
on any Consolidated obligation issued on our behalf is not paid in full when due, we may not pay dividends, redeem or repurchase
shares of stock of any member or non-member stockholder until the Finance Agency approves our Consolidated obligation payment
plan or other remedy and until we pay all the interest or principal currently due on all our Consolidated obligations. The Finance
Agency, at its discretion, may require any FHLBank to make principal or interest payments due on any Consolidated obligations.
Finance Agency regulations also state that the FHLBanks must maintain, free from any lien or pledge, the following types of assets in
an amount at least equal to the amount of Consolidated obligations outstanding: Cash; Obligations of, or fully guaranteed by, the
United States; Secured advances; Mortgages that have any guaranty, insurance, or commitment from the United States or any agency
of the United States; and investments described in section 16(a) of the FHLBank Act, including securities that a fiduciary or trust fund
may purchase under the laws of the state in which the FHLBank is located.
Results of Operations
The following section provides a comparative discussion of the FHLBNY's results of operations for the three months ended March 31,
2026 and 2025. For a discussion of the critical accounting estimates used by the FHLBNY that affect the results of operations, see
financial statements, Note 1. Summary of Significant Accounting Policies in the Bank's most recent 2025 Form 10-K filed on
March 20, 2026.
Net Income
Interest income from advances is the principal source of revenue. Other sources of revenue are interest income from investment debt
securities, liquidity trading securities, mortgage loans in the MPF and MAP portfolio, securities purchased under agreements to resell
and federal funds sold. Fair value gains and losses on liquidity trading securities and equity investments also impact net income. The
primary expense is interest paid on Consolidated obligation debt. Other expenses are primarily compensation and benefits, operating
expenses, our share of operating expenses of the Office of Finance and the FHFA, voluntary contributions, and affordable housing
program assessments on net income. Other significant factors affecting our net income include the volume and timing of investments
in mortgage-backed securities, prepayments of advances, charges due to debt repurchased, gains and losses from derivatives and
hedging activities, and earnings from investing our shareholders' capital.
Summarized below are the principal components of net income (in thousands):
Table 9.1 Principal Components of Net Income
|
Three Months ended March 31,
|
||||
|
2026
|
2025
|
|||
|
Total interest income
|
$1,624,971
|
$1,821,500
|
||
|
Total interest expense
|
1,407,509
|
1,606,493
|
||
|
Net interest income before provision for credit losses
|
217,462
|
215,007
|
||
|
Provision (Reversal) for credit losses
|
||||
|
Net interest income after provision for credit losses
|
217,285
|
214,840
|
||
|
Total other income (loss)
|
18,309
|
20,695
|
||
|
Total other expenses
|
64,626
|
62,569
|
||
|
Income before assessments
|
170,968
|
172,966
|
||
|
Affordable Housing Program Assessments
|
17,111
|
17,307
|
||
|
Net income
|
$153,857
|
$155,659
|
||
Net Income - 2026 First Quarter Compared to 2025 First Quarter
Net income - For the FHLBNY, net income is net interest income, minus Provision (Reversal) for credit losses, plus other income
(loss), less other expenses and assessments set aside for the FHLBNY's Affordable Housing Program.
Net income for the 2026 first quarter was $153.9 million, a decrease of $1.8 million or 1.2% compared to the same period in the prior
year. Summarized below are the primary components of our net income:
Net interest income - The 2026 first quarter net interest income before provision for credit losses was $217.5 million, an increase of
$2.5 million, or 1.2% compared to the same period in the prior year. Net interest spread was 34 basis points for the 2026 first quarter
compared to 31 basis points in the same period in the prior year. For more information, see Table 9.2 Net Interest Income and
accompanying discussions in this MD&A.
Other income (loss) - Other income (loss) reported a gain of $18.3 million in the first quarter of 2026, compared to a gain of $20.7
million in the same period in the prior year.
•Service fees and other were $6.3 million in the first quarter of 2026, compared to $5.6 million reported in the same period in
the prior year. Service fees and other are primarily fee revenues from financial letters of credit.
•Financial instruments carried at fair values reported net valuation gains of $1.1 million in the 2026 first quarter compared
to net losses of $16.0 million in the same period in the prior year. For more information, see financial statements, Fair Value
Option Disclosures in Note 18. Fair Values of Financial Instruments. Also see Table 9.9 Other Income (Loss) and
accompanying discussions in this MD&A.
•Derivative activities reported net gains of $46.6 million in Other income in the 2026 first quarter, compared to net losses of
$29.7 million in the same period in the prior year. For more information, see Table 9.11 Other Income (Loss) - Impact of
Derivative Gains and Losses and accompanying discussions in this MD&A.
•Securities gains (losses) reported net fair value losses of $34.9 million in the first quarter of 2026, compared to net fair value
gains of $60.6 million in the same period in the prior year.
•Equity Investments held to finance payments to retirees in a non-qualified pension plan, reported net fair value losses of
$1.7 million in the 2026 first quarter compared to net gains of $0.2 million in the same period in the prior year.
•Litigation settlement reported gains of $0.8 million from LIBOR-based financial instrument antitrust litigation.
Other expenses were $64.6 million in the first quarter of 2026 compared to $62.6 million in the same period in the prior year. Other
expenses are primarily operating expenses, compensation and benefits, our share of expenses of the Office of Finance and the Federal
Housing Finance Agency, and voluntary contributions.
•Operating expenses were $23.7 million in the first quarter of 2026, up from $21.6 million in the same period in the prior
year. The increase in operating expenses were related to technology related investments.
•Compensation and benefits expenses were $31.2 million in the first quarter of 2026, compared to $30.0 million in the same
period in the prior year.
•Voluntary contributions were $2.8 million in the first quarter of 2026, compared to $3.1 million in the same period in the
prior year for various housing programs, grants and charitable contributions. These voluntary contributions are in excess of
the Bank's AHP statutory requirement.
•Finance Agency and Office of Finance expenses allocated for our share of the costs to operate the Office of Finance and the
Federal Housing Finance Agency were $4.8 million in the first quarter of 2026, compared to $5.9 million in the same period
in the prior year.
•Other expenses were $2.2 million in the first quarter of 2026, slightly up from $2.0 million in the same period in the prior
year.
Net Interest Income, Interest Rate Margin and Interest Rate Spread
Net interest income is our principal source of net income. It represents the difference between income on interest-earning assets and
expense on interest-bearing liabilities.
The following table summarizes net interest income (dollars in thousands):
Table 9.2 Net Interest Income
|
Three Months ended March 31,
|
|||||||
|
2026
|
2025
|
Percentage
Change
|
|||||
|
Total interest income (a)
|
$1,624,971
|
$1,821,500
|
(10.79)
|
%
|
|||
|
Total interest expense (a)
|
1,407,509
|
1,606,493
|
(12.39)
|
||||
|
Net interest income before provision for credit losses
|
$217,462
|
$215,007
|
1.14
|
%
|
|||
(a)Total Interest Income and Total Interest Expense - See Tables 9.6 and 9.8 and accompanying discussions
In the first quarter of the current year, net interest income before provision for credit losses, was $217.5 million, an increase of $2.5
million, or 1.2% from the first quarter of 2025. The slight increase in net interest income was driven by larger average interest earning
asset balances, $165.6 billion for the first quarter of 2026, compared to $161.1 billion for the prior year period. Net interest spread
increased to 34 basis points in the first quarter of 2026, compared to 31 basis points in the same period in 2025. This was partially
offset by a decrease in market interest rates as reflected in a decline of 61 basis points on average yield on earning assets. Decreasing
market interest rates negatively impacted yields from advances, primarily on overnight and short-term advances and variable-rate
advances that reset to lower rates. Net interest margin, a measure of margin efficiency, which is calculated as net interest income
divided by average earning assets, was 53 basis points in the first quarter of 2026, compared to 54 basis points in the same period in
the prior year.
Stockholders' capital (as measured by average outstanding balance in the period), which is typically deployed to fund short-term
interest-earning assets was $8.5 billion in the first quarter of 2026, an increase from $8.4 billion in the first quarter of 2025.
Stockholders' capital stock and retained earnings are also factors that impact net interest income as they provide interest free funding.
Swap interest settlement designated in ASC 815 hedging of assets and liabilities recorded net income of $26.5 million in the first
quarter of 2026, compared to net income of $29.0 million in the first quarter of 2025. Interest settlements are impacted by the net
differential between fixed-rates associated with hedging swaps and the benchmark variable-rates associated with the swap's floating-
leg. Net interest settlements on swaps hedging assets and liabilities under ASC 815 fluctuated as expected in line with changes in the
benchmark rates; the hedging transactions achieved our interest rate risk management objectives.
Impact of Qualifying Hedges on Net Interest Income
The following table summarizes the impact of net interest adjustments from qualifying hedge interest rate swaps (in thousands):
Table 9.3 Net Interest Adjustments from Qualifying Hedge Interest Rate Swaps
|
Three Months ended March 31,
|
||||
|
2026
|
2025
|
|||
|
Interest income
|
$1,565,988
|
$1,694,511
|
||
|
Fair value hedging effects
|
(1,919)
|
|||
|
Amortization of basis adjustment
|
||||
|
Interest rate swap accruals
|
64,047
|
142,643
|
||
|
Price alignment amount (a)
|
(5,261)
|
(13,752)
|
||
|
Reported interest income
|
1,624,971
|
1,821,500
|
||
|
Interest expense
|
1,381,912
|
1,503,957
|
||
|
Fair value hedging effects
|
(5,369)
|
3,875
|
||
|
Amortization of basis adjustment
|
(1,350)
|
(1,203)
|
||
|
Interest rate swap accruals
|
31,573
|
99,571
|
||
|
Price alignment amount (b)
|
||||
|
Reported interest expense
|
1,407,509
|
1,606,493
|
||
|
Net interest income
|
$217,462
|
$215,007
|
||
|
Net interest adjustment - interest rate swaps
|
$33,386
|
$24,453
|
||
(a)Relates to derivatives for which variation margin payments are characterized as daily settled contracts. Price alignment amount
in Interest income for advances hedged were $2.0 million expense in the first quarter of 2026 and $7.3 million expense in the
same period in 2025. Price alignment amount in Interest income for AFS debt securities hedged were $3.3 million expense in the
first quarter of 2026 and $6.5 million expense in the same period in 2025.
(b)Relates to derivatives for which variation margin payments are characterized as daily settled contracts. Price alignment amount
in Interest expense for consolidated obligation bonds hedged were $0.8 million expense in the first quarter of 2026 and $0.3
million expense in the same period in 2025. Price alignment amount in Interest expense for consolidated obligation discount notes
hedged were $0.1 million income in the first quarter of 2026 and de minimis income in the same period in 2025.
Spread and Yield Analysis - 2026 period compared to 2025
Table 9.4 Spread and Yield Analysis
|
Three Months ended March 31,
|
||||||||||||||
|
2026
|
2025
|
|||||||||||||
|
(Dollars in thousands)
|
Average
Balance
|
Interest
Income/
Expense
|
Yield/
Rate (a)
|
Average
Balance
|
Interest
Income/
Expense
|
Yield/
Rate (a)
|
||||||||
|
Earning Assets:
|
||||||||||||||
|
Advances
|
$102,679,839
|
$1,035,828
|
4.09
|
%
|
$102,278,481
|
$1,207,004
|
4.79
|
%
|
||||||
|
Interest bearing deposits and others
|
3,251,357
|
29,964
|
3.74
|
3,205,914
|
35,058
|
4.43
|
||||||||
|
Securities purchased under agreements to
resell
|
12,363,678
|
113,016
|
3.71
|
4,761,155
|
51,277
|
4.37
|
||||||||
|
Federal funds sold
|
12,945,000
|
117,874
|
3.69
|
20,209,178
|
218,915
|
4.39
|
||||||||
|
Investments
|
||||||||||||||
|
Trading securities
|
8,583,229
|
66,504
|
3.14
|
7,359,999
|
58,319
|
3.21
|
||||||||
|
Mortgage-backed securities
|
||||||||||||||
|
Fixed
|
15,345,764
|
147,854
|
3.91
|
14,818,474
|
150,735
|
4.13
|
||||||||
|
Floating
|
5,358,359
|
61,208
|
4.63
|
4,620,409
|
58,972
|
5.18
|
||||||||
|
Available-for-sale Treasuries
|
557,333
|
5,299
|
3.86
|
-
|
-
|
NM
|
||||||||
|
State and local housing finance agency
obligations
|
1,817,025
|
19,962
|
4.46
|
1,456,744
|
18,494
|
5.15
|
||||||||
|
Mortgage loans held-for-portfolio
|
2,669,809
|
27,457
|
4.17
|
2,360,470
|
22,666
|
3.89
|
||||||||
|
Loans to other FHLBanks
|
3.69
|
5,556
|
4.39
|
|||||||||||
|
Total interest-earning assets
|
$165,571,948
|
$1,624,971
|
3.98
|
%
|
$161,076,380
|
$1,821,500
|
4.59
|
%
|
||||||
|
Funded By:
|
||||||||||||||
|
Consolidated obligation bonds
|
||||||||||||||
|
Fixed
|
$37,220,088
|
$325,543
|
3.55
|
%
|
$51,670,237
|
$519,531
|
4.08
|
%
|
||||||
|
Floating
|
28,107,974
|
261,617
|
3.77
|
33,551,882
|
369,635
|
4.47
|
||||||||
|
Consolidated obligation discount notes
|
89,105,047
|
798,663
|
3.64
|
64,315,858
|
689,856
|
4.35
|
||||||||
|
Interest-bearing deposits and other
borrowings
|
2,479,409
|
21,547
|
3.52
|
2,640,881
|
27,370
|
4.20
|
||||||||
|
Mandatorily redeemable capital stock
|
7,414
|
7.60
|
4,433
|
9.25
|
||||||||||
|
Total interest-bearing liabilities
|
156,919,932
|
1,407,509
|
3.64
|
%
|
152,183,291
|
1,606,493
|
4.28
|
%
|
||||||
|
Other non-interest-bearing funds
|
122,015
|
506,270
|
||||||||||||
|
Capital
|
8,530,001
|
8,386,819
|
||||||||||||
|
Total Funding
|
$165,571,948
|
$1,407,509
|
$161,076,380
|
$1,606,493
|
||||||||||
|
Net Interest Income/Spread
|
$217,462
|
0.34
|
%
|
$215,007
|
0.31
|
%
|
||||||||
|
Net Interest Margin
|
||||||||||||||
|
(Net interest income/Earning Assets)
|
0.53
|
%
|
0.54
|
%
|
||||||||||
NM - Not meaningful.
(a)Reported yields with respect to advances and Consolidated obligations may not necessarily equal the coupons on the instruments
as derivatives are extensively used to change the yield and optionality characteristics of the underlying hedged items. When we
issue fixed-rate debt that is hedged with an interest rate swap, the hedge effectively converts the debt into a simple floating-rate
bond. Similarly, we make fixed-rate advances to members and hedge the advances with a pay-fixed and receive-variable interest
rate swap that effectively converts the fixed-rate asset to one that floats with the designated benchmark rate (Federal Funds-OIS
or SOFR-OIS) in the hedging relationship. Average balance sheet information is presented, as it is more representative of activity
throughout the periods presented. For most components of the average balances, a daily weighted average balance is calculated
for the period. When daily weighted average balance information is not available, a simple monthly average balance is
calculated. Average yields are derived by dividing income by the average balances of the related assets, and average costs are
derived by dividing expenses by the average balances of the related liabilities. Yields and spreads are annualized.
Rate and Volume Analysis - 2026 period compared to 2025
The Rate and Volume Analysis presents changes in interest income, interest expense and net interest income that are due to changes in
both interest rates and the volume of interest-earning assets and interest-bearing liabilities, and their impact on interest income and
interest expense. Changes in interest income and interest expense that are not identifiable as either volume-related or rate-related, but
rather attributable to both volume and rate changes, are allocated to the volume and rate categories based on the proportion of the
absolute value of the volume and the rate change (in thousands):
Table 9.5 Rate and Volume Analysis
|
For the three months ended
|
||||||
|
March 31, 2026 vs. March 31, 2025
|
||||||
|
Increase (Decrease)
|
||||||
|
Volume
|
Rate
|
Total
|
||||
|
Interest Income
|
||||||
|
Advances
|
$4,718
|
$(175,894)
|
$(171,176)
|
|||
|
Interest bearing deposits and others
|
(5,585)
|
(5,094)
|
||||
|
Securities purchased under agreements to resell
|
70,566
|
(8,827)
|
61,739
|
|||
|
Federal funds sold
|
(70,000)
|
(31,041)
|
(101,041)
|
|||
|
Investments
|
||||||
|
Trading securities
|
9,503
|
(1,318)
|
8,185
|
|||
|
Mortgage-backed securities
|
||||||
|
Fixed
|
5,250
|
(8,131)
|
(2,881)
|
|||
|
Floating
|
8,822
|
(6,586)
|
2,236
|
|||
|
Available-for-sale Treasuries
|
5,299
|
-
|
5,299
|
|||
|
State and local housing finance agency obligations
|
4,175
|
(2,707)
|
1,468
|
|||
|
Mortgage loans held-for-portfolio
|
3,107
|
1,684
|
4,791
|
|||
|
Loans to other FHLBanks
|
(47)
|
(8)
|
(55)
|
|||
|
Total interest income
|
41,884
|
(238,413)
|
(196,529)
|
|||
|
Interest Expense
|
||||||
|
Consolidated obligation bonds
|
||||||
|
Fixed
|
(132,390)
|
(61,598)
|
(193,988)
|
|||
|
Floating
|
(55,218)
|
(52,800)
|
(108,018)
|
|||
|
Consolidated obligation discount notes
|
235,254
|
(126,447)
|
108,807
|
|||
|
Deposits and borrowings
|
(1,599)
|
(4,224)
|
(5,823)
|
|||
|
Mandatorily redeemable capital stock
|
(20)
|
|||||
|
Total interest expense
|
46,105
|
(245,089)
|
(198,984)
|
|||
|
Changes in Net Interest Income
|
$(4,221)
|
$6,676
|
$2,455
|
|||
The principal categories of Interest Income are summarized below (dollars in thousands):
Table 9.6 Interest Income - Principal Sources
|
Three Months ended March 31,
|
||||||
|
2026
|
2025
|
Percentage
Change
|
||||
|
Interest Income
|
||||||
|
Advances
|
$1,035,828
|
$1,207,004
|
(14.18)
|
%
|
||
|
Interest-bearing deposits
|
29,964
|
35,058
|
(14.53)
|
|||
|
Securities purchased under agreements to resell
|
113,016
|
51,277
|
120.40
|
|||
|
Federal funds sold
|
117,874
|
218,915
|
(46.16)
|
|||
|
Trading securities
|
66,504
|
58,319
|
14.03
|
|||
|
Mortgage-backed securities
|
||||||
|
Fixed
|
147,854
|
150,735
|
(1.91)
|
|||
|
Floating
|
61,208
|
58,972
|
3.79
|
|||
|
Available-for-sale Treasuries
|
5,299
|
-
|
NM
|
|||
|
State and local housing finance agency obligations
|
19,962
|
18,494
|
7.94
|
|||
|
Mortgage loans held-for-portfolio
|
27,457
|
22,666
|
21.14
|
|||
|
Loans to other FHLBanks
|
(91.67)
|
|||||
|
Total interest income
|
$1,624,971
|
$1,821,500
|
(10.79)
|
%
|
||
NM - Not meaningful.
Interest Income
Interest income in the 2026 first quarter was $1.6 billion, a decrease of $0.2 billion, or 10.8% compared to the same period in 2025. To
provide context, interest expense decreased by 12.4% compared to the same period in the prior year.
For the 2026 first quarter compared to 2025 first quarter, the decrease in interest revenue was due to a rate-related decrease of $238.4
million partially offset by a volume-related increase of $41.9 million.
Aggregate yield on earning assets in the first quarter of 2026 was 398 basis points, compared to 459 basis points in the first quarter of
2025.
The more significant revenue categories are discussed below. For information about the effects of changes in rates and business
volume, see Table 9.4 Spread and Yield Analysis and Table 9.5 Rate and Volume analysis.
Advances - Interest income from advances decreased by $0.2 billion or 14.2% in the 2026 first quarter, compared to the same period
in the prior year. Advances average balances were $102.7 billion in 2026 first quarter compared to $102.3 billion in the 2025 first
quarter.
As compared to the same period in the prior year, lower market rates resulted in an unfavorable impact of $175.9 million partially
offset by higher average advances balances resulting in a favorable impact of $4.7 million on interest income from advances. In
summary, decreasing market interest rates negatively impacted yields from advances, primarily on overnight and short-term advances
and variable-rate advances that reset to lower rates. Advances yielded 409 basis points in the first quarter of 2026, down from 479
basis points in the same period in the prior year.
Table 9.7 Advance Prepayment Fees (in thousands)
|
Three months ended March 31,
|
||||
|
2026
|
2025
|
|||
|
Gross amount of prepayment fees received from advance borrowers
|
$1,360
|
$163
|
||
|
Hedging fair value adjustments
|
(466)
|
-
|
||
|
Other (a)
|
4,716
|
4,643
|
||
|
Total advance prepayment fees, net
|
$5,610
|
$4,806
|
||
(a) Recognition of deferred prepayment fees.
The principal categories of Interest expense are summarized below (dollars in thousands):
Table 9.8 Interest Expense - Principal Categories
|
Three Months ended March 31,
|
|||||||
|
2026
|
2025
|
Percentage
Change
|
|||||
|
Interest Expense
|
|||||||
|
Consolidated obligations bonds
|
|||||||
|
Fixed
|
$325,543
|
$519,531
|
(37.34)
|
%
|
|||
|
Floating
|
261,617
|
369,635
|
(29.22)
|
||||
|
Consolidated obligations discount notes
|
798,663
|
689,856
|
15.77
|
||||
|
Deposits
|
21,314
|
27,164
|
(21.54)
|
||||
|
Mandatorily redeemable capital stock
|
37.62
|
||||||
|
Cash collateral held and other borrowings
|
13.11
|
||||||
|
Total interest expense
|
$1,407,509
|
$1,606,493
|
(12.39)
|
%
|
|||
Interest expense for the 2026 first quarter was $1.4 billion, a decrease of 12.4% compared to the 2025 first quarter. (As noted
elsewhere in this document, interest income decreased by 10.8% compared to the 2025 first quarter).
The decrease in interest expense was driven by lower market interest rates partially offset by higher average balances in short-term
Consolidated obligations outstanding in the 2026 first quarter.
Rate-related decrease in funding expense was $245.1 million. Volume-related increase in funding expense was $46.1 million in the
2026 first quarter compared to the 2025 first quarter. Aggregate yield paid on total funding in the 2026 first quarter was 364 basis
points, compared to 428 basis points in the 2025 first quarter.
Our liability composition has changed from the 2025 first quarter to the 2026 first quarter. The usage of CO discount notes was 53.8%
in the 2026 first quarter, up from 39.9% in the 2025 first quarter. In the first quarter of 2026, 22.5% of average earning assets were
funded by fixed-rate CO bonds and 17.0% were funded by floating-rate CO bonds. In the first quarter of 2025, fixed-rate CO bonds
funded 32.1% of earning assets and floating-rate CO bonds funded 20.8% of earning assets.
Analysis of Non-Interest Income (Loss) - 2026 First quarter Compared to 2025 First quarter
The principal components of Non-interest income (loss) are summarized below (in thousands):
Table 9.9 Other Income (Loss)
|
Three months ended March 31,
|
|||||
|
2026
|
2025
|
||||
|
Other income (loss)
|
|||||
|
Service fees and other (a)
|
$6,304
|
$5,626
|
|||
|
Instruments held under the fair value option gains (losses)
|
1,134
|
(15,981)
|
|||
|
Derivative gains (losses)
|
46,639
|
(29,668)
|
|||
|
Securities gains (losses)
|
(34,869)
|
60,553
|
|||
|
Equity investments gains (losses)
|
(1,650)
|
||||
|
Litigation settlement
|
-
|
||||
|
Total other income (loss)
|
$18,309
|
$20,695
|
|||
(a)Service fees and other, net - Service fees are from providing correspondent banking services to members, primarily fees earned
on standby financial letters of credit. Letters of credit are generally issued on behalf of members to units of state and local
governments to collateralize their deposits at member banks. Fee income earned on financial letters of credit were $5.5 million in
the first quarter of the current year, compared to $4.7 million in the same period in the prior year.
The following table summarizes unrealized and realized gains (losses) in the trading portfolio (in thousands):
Table 9.10 Net Gains (Losses) on Trading Securities Recorded in the Statements of Income
|
Three Months ended March 31,
|
|||||
|
2026
|
2025
|
||||
|
Net unrealized gains (losses) on trading securities held at period-end
|
$(34,204)
|
$60,666
|
|||
|
Net gains (losses) on trading securities sold/matured during the period
|
(665)
|
(113)
|
|||
|
Net gains (losses) on trading securities
|
$(34,869)
|
$60,553
|
|||
We have invested in short- and medium-term fixed-rate U.S. Treasury securities. The securities are not held for speculative trading,
rather held to satisfy liquidity requirements. Fluctuations in valuations are a factor of market demand and market yields of fixed-rate
U.S. Treasury securities. Securities classified as trading are carried at fair values. Changes in unrealized fair values and realized gains
(losses) are recorded in the Statements of Income as Other income. FHFA regulations prohibit trading in or the speculative use of
financial instruments. Par amounts of securities outstanding was $10.8 billion at March 31, 2026 and $7.6 billion at December 31,
2025.
Other income (loss) - Derivatives and Hedging Activities - 2026 First quarter Compared to 2025 First quarter
For derivatives that are not designated in qualifying hedge relationship (i.e., in an economic hedge), the derivatives are considered as a
"standalone" instrument and fair value changes are recorded in Other income (loss), without the offset of valuation of a hedged item.
Gains and losses recorded in Other income (loss) on standalone derivatives include net interest accruals.
The table presents fair value changes of derivatives in economic hedges (i.e. not in an ASC 815 qualifying hedge) in Other income
(loss):
Table 9.11 Other Income (Loss) - Impact of Derivative Gains and Losses (in thousands)
|
Impact on Other Income (Loss)
|
|||||
|
Three months ended March 31,
|
|||||
|
2026
|
2025
|
||||
|
Derivatives not designated as hedging instruments
|
|||||
|
Interest rate swaps (a)
|
$31,301
|
$(58,085)
|
|||
|
Caps or floors
|
1,156
|
(95)
|
|||
|
Mortgage delivery commitments
|
(126)
|
||||
|
Swaps economically hedging instruments designated under FVO (b)
|
15,506
|
||||
|
Accrued interest on derivatives in economic hedging relationships (c)
|
14,926
|
13,894
|
|||
|
Net gains (losses) related to derivatives not designated as hedging instruments
|
47,758
|
(28,562)
|
|||
|
Price alignment amount (d)
|
(1,119)
|
(1,106)
|
|||
|
Net gains (losses) on derivatives and hedging activities
|
$46,639
|
$(29,668)
|
|||
(a)Represents fair value changes recorded in Other income, primarily interest rate swaps in economic hedges of U.S. Treasury fixed-
rate securities recorded fair value gains of $32.9 million in the first quarter of 2026, compared to fair value losses of $58.3
million in the first quarter of 2025. The swaps are structured to mitigate the volatility of price changes of the liquidity portfolio
of fixed-rate U.S. Treasury notes.
(b)Represents fair value changes recorded in Other income on interest rate swaps hedging CO debt elected under the FVO.
(c)Represents impact to Other income due to net interest settlements on standalone swap contracts. Net interest settlements are the
interest accruals on swaps primarily in economic hedges of U.S. Treasury securities, debt and advances, and economic hedges of
instruments elected under the FVO.
(d)Relates to derivatives for which variation margin payments are characterized as daily settled contracts.
Derivative gains and losses in the table above include both realized and unrealized fair value net gains and losses. Also includes swap
interest settlements on derivatives designated as standalone hedging instruments.
Operating Expenses, Compensation and Benefits, and Other Expenses - 2026 Period Compared to 2025 Period
The following table sets forth the major categories of operating expenses (dollars in thousands):
Table 9.12 Operating Expenses, and Compensation and Benefits
|
Three Months ended March 31,
|
|||||||||||
|
2026
|
Percentage
of Total
|
2025
|
Percentage
of Total
|
||||||||
|
Operating Expenses (a)
|
|||||||||||
|
Compensation & Benefits
|
$31,218
|
48.31
|
%
|
$30,002
|
47.95
|
%
|
|||||
|
Occupancy
|
3,218
|
4.98
|
2,972
|
4.75
|
|||||||
|
Depreciation
|
4,765
|
7.37
|
4,028
|
6.44
|
|||||||
|
Contractual and Computer Service Agreements
|
13,016
|
20.14
|
11,916
|
19.04
|
|||||||
|
Professional Fees
|
0.02
|
0.02
|
|||||||||
|
Other Operating Expenses (b)
|
2,729
|
4.22
|
2,665
|
4.26
|
|||||||
|
Total Operating Expenses
|
54,957
|
85.04
|
51,595
|
82.46
|
|||||||
|
Voluntary Contributions
|
2,752
|
4.26
|
3,072
|
4.91
|
|||||||
|
Finance Agency and Office of Finance (c)
|
4,753
|
7.35
|
5,904
|
9.44
|
|||||||
|
Other Expenses (d)
|
2,164
|
3.35
|
1,998
|
3.19
|
|||||||
|
Total Operating Expenses and Others
|
$64,626
|
100.00
|
%
|
$62,569
|
100.00
|
%
|
|||||
(a)Operating expenses included the administrative and overhead costs of operating the FHLBNY, as well as the operating costs of
providing advances and managing collateral associated with the advances, managing the investment portfolios, and providing
correspondent banking services to members.
(b)The category "Other Operating Expenses" included temporary workers, contractual services, professional and legal fees, audit
fees, director fees and expenses, insurance, and telecommunications.
(c)We are assessed for our share of the operating expenses for the Finance Agency and the Office of Finance. The FHLBanks and
two other GSEs share the entire cost of the Finance Agency. Expenses are allocated by the Finance Agency and the Office of
Finance.
(d)The category "Other Expense" included non-service elements of net periodic pension benefit costs, MPF transaction fees and
derivative clearing fees.
Legislative and Regulatory Developments
See Management's Discussion and Analysis of Financial Condition and Results of Operations - Legislative and Regulatory
Developments in the Bank's Form 10-K for the year ended December 31, 2025 (pages 35 to 37) for a description of certain legislative
and regulatory developments that occurred prior to the publication of the Form 10-K that have affected or may affect certain aspects of
the Bank's business operations, and could affect the financial condition, results of operations, and reputation of the Bank.
Federal Home Loan Bank of New York published this content on May 07, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on May 07, 2026 at 16:56 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]