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Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)

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Federal Home Loan Bank of New York

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11/06/2025 | Press release | Distributed by Public on 11/06/2025 14:48

Consolidated Obligation Bonds

Par Amount

September 30, 2025

December 31, 2024

Bonds designated as economically hedged

Fixed-rate bonds ^(b)

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, 2024, filed with the SEC on March 21, 2025 (the "2024 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, including, without limitation, housing or government-sponsored enterprise legislation; and

●

political events, including legislative, Presidential Executive Orders, international trade policies, regulatory, judicial, 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 Federal Housing Finance Agency actions and analysis of the FHLBank System, 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 2024 Annual Report, and the risks set forth below:

●

changes in economic and market conditions;

●

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 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 internet, 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 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) 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
Executive Overview
Third Quarter 2025 Financial Results
Financial Condition
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
Assessments
Legislative and Regulatory Developments

MD&A TABLE REFERENCE

Table(s)	Description	Page(s)
	Selected Financial Data	64-66
1.1	Financial Condition
2.1 - 2.8	Advances	69-74
3.1 - 3.8	Investments	74-79
4.1 - 4.3	Mortgage Loans	80-81
5.1 - 5.11	Consolidated Obligations	82-86
6.1 - 6.4	Capital	87-89
7.1	Derivatives	89-91
8.1 - 8.3	Liquidity	91-95
9.1 - 9.12	Results of Operations	95-109
10.1	Assessments

Executive Overview

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 2024 Form 10-K filed on March 21, 2025.

Cooperative business model. As a cooperative, we seek to maintain a balance between our public policy mission and our ability to provide adequate returns on the capital supplied by our members. We achieve this balance by delivering low-cost financing to members to help them meet the credit needs of their communities and by paying a dividend on members' capital stock. Our financial strategies are designed to enable us to expand and contract in response to member credit needs. By investing capital in high-quality, short- and medium-term financial instruments, we maintain sufficient liquidity to satisfy member demand for short- and long-term funds, repay maturing Consolidated obligations (CO bonds and CO discount notes), and meet other obligations. The dividends we pay are largely the result of earnings on invested member capital, net earnings on advances to members, mortgage loans and investments, offset in part by operating expenses and assessments. Our Board of Directors and Management determine the pricing of member credit and dividend policies based on the needs of our members and the cooperative as well as current and forecasted conditions in the marketplace.

Business segment. We manage our operations as a single business segment. Advances to members are our primary focus and the principal factor that impacts our operating results.

Mission Fulfillment. Throughout the third quarter of 2025, the Bank has continued to meet our members' needs, providing on-demand funding to help them better serve their customers and communities.

Third quarter 2025 Financial Results

Net income - Net income for the third quarter of 2025 was $159.7 million, a decrease of $23.7 million, or 12.9%, from net income of $183.4 million for the same period in 2024. Our net income is primarily driven by net interest income, which is the spread between yields earned on advances, mortgage-backed securities, and other investments and the cost of debt.

Net Interest Income - Net interest income for the third quarter of 2025 was $212.0 million, a decrease of $25.2 million, or 10.6%, from $237.2 million for the same period in 2024. The decrease in net interest income was driven by a decrease of $10.3 billion in average advances balances from the prior year period, and a decrease in market interest rates, as reflected in a decline of 90 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. Average advances balances decreased to $100.7 billion in the third quarter of 2025, down from $111.0 billion in the same period in 2024. Average interest earning assets decreased to $161.5 billion for the third quarter of 2025 compared to $169.0 billion for the prior year period. Net interest spread increased to 30 basis points in the third quarter of 2025 compared to 27 basis points in the same period in 2024.

Return on average equity (ROE) for the third quarter of 2025 was 7.65%, compared to ROE of 8.29% for the same period in 2024.

Other income (loss) - Other income (loss) decreased by $3.2 million, resulting from a smaller gain of $31.9 million in the third quarter of 2025 compared to a gain of $35.1 million in the third quarter of 2024.

Other expenses - Other expenses decreased by $1.8 million year over year. Other expenses were $66.7 million in the third quarter of 2025 compared to $68.5 million in the same period in the prior year. Other expenses are primarily operating expenses, compensation and benefits, voluntary contributions for the Bank's housing and community development support activities, and our share of expenses of the Office of Finance and the Federal Housing Finance Agency.

Affordable Housing Program Assessments (AHP) allocated from net income was $17.8 million for the third quarter of the current year, compared to $20.4 million for the same period in the prior year. Assessments are calculated as a percentage of net income, and changes in allocations were proportional with changes in net income.

Dividend payments - A quarterly cash dividend of $1.90 per share (7.60% annualized) was paid in the third quarter of the current year, compared to $2.36 per share (9.50% annualized) in the same period of the prior year.

Financial Condition - September 30, 2025 compared to December 31, 2024

Our financial condition is characterized by a solid balance sheet and ample liquidity readily available for our member institutions.

Total assets decreased to $155.4 billion at September 30, 2025, from $160.3 billion at December 31, 2024, a decrease of $4.9 billion, or 3.1%. As of September 30, 2025, advances were $96.2 billion, a decrease of $9.6 billion, or 9.1%, from $105.8 billion at December 31, 2024.

Cash at banks was $30.2 million at September 30, 2025, compared to $26.1 million at December 31, 2024.

Liquidity investments- Money market investments increased $2.5 billion at September 30, 2025 to $25.6 billion, as compared to $23.1 billion at December 31, 2024. We continue to ensure an ample supply of funds to meet liquidity demands. Federal funds increased $0.1 billion to $9.5 billion, Interest-bearing deposits at highly rated financial institutions increased $0.2 billion to $3.0 billion and overnight resale agreements increased $2.2 billion to $13.1 billion.

For liquidity, we maintain a portfolio of U.S. Treasury securities designated as trading to meet short-term contingency liquidity needs. Balances were $7.3 billion and $7.2 billion at September 30, 2025 and December 31, 2024, respectively.

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 and assets discussed above, liquid assets included $9.7 billion at September 30, 2025 and $8.7 billion at December 31, 2024 of high credit quality GSE-issued available-for-sale securities that are investment grade and readily marketable and $560.1 million of available-for-sale U.S. Treasury securities at September 30, 2025.

For more information about 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- Par balances decreased at September 30, 2025 to $96.4 billion, compared to $106.5 billion at December 31, 2024. Given that advances are always well collateralized, a provision for credit losses was not necessary. The bank has not recorded a credit loss on an advance in our history.

Long-term investment debt securities- Long-term investment debt securities are designated as available-for-sale (AFS) or held-to-maturity (HTM). Our investment profile consists almost exclusively of GSE and Agency-issued (GSE-issued) securities.

In the AFS portfolio, GSE-issued mortgage-backed securities were carried on the balance sheet at fair value of $9.7 billion and $8.7 billion at September 30, 2025 and December 31, 2024, respectively. Our portfolio consists primarily of long term fixed-rate long-term investments.

In the AFS portfolio, State and local housing finance agency obligations, primarily New York and New Jersey, were carried at $1.4 billion at September 30, 2025 and $1.3 billion at December 31, 2024.

In the HTM portfolio, long-term investments of predominantly GSE-issued fixed- and floating-rate mortgage-backed securities were $10.9 billion and $10.7 billion at September 30, 2025 and December 31, 2024, respectively. No allowance for credit losses were deemed necessary for GSE-issued investments.

In the HTM portfolio, State and local housing finance agency obligations were $0.2 billion at September 30, 2025 and December 31, 2024. Allowance for credit losses on State and local housing finance agency obligations in the HTM portfolio was $0.1 million at September 30, 2025, slightly lower than the balance at December 31, 2024.

Equity Investments- We own grantor trusts that invest in highly-liquid registered mutual funds. Funds are classified as Equity Investments and were carried on the balance sheet at fair values of $103.4 million on September 30, 2025 and $95.4 million at December 31, 2024.

Mortgage loans held-for-portfolio- Mortgage loans are investments in MPF loans and MAP loans. As of March 31, 2021, the MAP mortgage loan program became our only active mortgage loan purchase program as we ceased to acquire mortgage loans through MPF.

Unpaid principal balance of MPF loans stood at $1.5 billion at September 30, 2025, a decrease of $104.2 million from the balance at December 31, 2024. Unpaid principal balance of MAP loans stood at $1.1 billion at September 30, 2025 compared to $745.5 million at December 31, 2024.

Historically, credit performance has been strong in the MPF and MAP portfolio and delinquencies have been low.

Capital ratios- Our capital position remains strong. Actual risk-based capital was $8.2 billion and $8.5 billion for the period ending September 30, 2025 and December 31, 2024, respectively. Required risk-based capital was $1.0 billion at September 30, 2025 and December 31, 2024. To support $155.4 billion of total assets at September 30, 2025, the minimum required total capital was $6.2 billion or 4.0% of assets. Our actual regulatory risk-based capital was $8.2 billion, exceeding required total capital by $2.0 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, Mandatorily Redeemable Capital Stock and Restricted Retained Earnings.

Leverage- On September 30, 2025, balance sheet leverage (based on U.S. GAAP) was 19.1 times shareholders' equity the same figure reported at December 31, 2024. 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.

Selected Financial Data.


Statements of Condition	September 30,			June 30,			March 31,			December 31,			September 30,
(dollars in millions)	2025			2025			2025			2024			2024
Investments ^(a)	$	55,882		$	59,771		$	56,497		$	51,267		$	45,758
Advances		96,219			104,720			97,523			105,838			106,435
Mortgage loans held-for-portfolio, net ^(b)		2,560			2,459			2,380			2,345			2,308
Total assets		155,434			167,779			157,224			160,300			155,454
Deposits and borrowings		2,924			3,583			2,730			2,429			2,116
Consolidated obligations, net
Bonds		82,326			95,009			92,207			80,552			92,468
Discount notes		60,973			59,511			53,189			67,859			51,341
Total consolidated obligations		143,299			154,520			145,396			148,411			143,809
Mandatorily redeemable capital stock		9			9			4			5			6
AHP liability		230			232			236			231			207
Capital
Capital stock		5,582			5,962			5,631			6,014			6,014
Retained earnings
Unrestricted		1,292			1,279			1,272			1,287			1,309
Restricted		1,303			1,271			1,240			1,209			1,178
Total retained earnings		2,595			2,550			2,512			2,496			2,487
Accumulated other comprehensive income (loss)		(48)			(88)			(66)			(100)			(85)
Total capital		8,129			8,424			8,077			8,410			8,416
Equity to asset ratio ^(c)(j)		5.23	%		5.02	%		5.14	%		5.25	%		5.41	%


	Three months ended										Nine months ended
Statements of Condition	September 30,		June 30,		March 31,		December 31,		September 30,		September 30,		September 30,
Averages (See note below; dollars in millions)	2025		2025		2025		2024		2024		2025		2024
Investments ^(a)	$	58,281	$	57,627	$	56,040	$	54,433	$	55,183	$	57,325	$	49,486
Advances		100,672		107,409		102,278		104,743		111,040		103,448		110,990
Mortgage loans held-for-portfolio, net		2,506		2,420		2,360		2,333		2,273		2,429		2,224
Total assets		162,466		168,600		161,912		162,814		170,123		164,328		169,560
Interest-bearing deposits and other borrowings		2,801		2,644		2,624		2,479		2,302		2,690		2,487
Consolidated obligations, net
Bonds		87,988		96,913		85,222		86,424		97,305		90,051		97,386
Discount notes		61,900		58,980		64,316		63,979		60,186		61,723		59,175
Total consolidated obligations		149,888		155,893		149,538		150,403		157,491		151,774		156,561
Mandatorily redeemable capital stock		9		8		4		6		6		7		6
AHP liability		228		231		231		210		205		230		200
Capital
Capital stock		5,779		6,083		5,849		5,951		6,240		5,903		6,214
Retained earnings
Unrestricted		1,305		1,288		1,317		1,329		1,325		1,304		1,320
Restricted		1,282		1,250		1,221		1,191		1,154		1,251		1,117
Total retained earnings		2,587		2,538		2,538		2,520		2,479		2,555		2,437
Accumulated other comprehensive income (loss)		(83)		(96)		(71)		(156)		(36)		(83)		(49)
Total capital		8,283		8,525		8,316		8,315		8,683		8,375		8,602

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															Nine months ended
(dollars in millions, except earnings and	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
dividends per share, and headcount)	2025			2025			2025			2024			2024			2025			2024
Net income	$	159		$	153		$	156		$	153		$	183		$	468		$	585
Net interest income ^(d)		212			215			215			237			237			642			750
Dividends paid in cash ^(e)		115			116			138			144			148			369			437
AHP expense		18			17			17			17			20			52			65
Return on average equity ^(f)(g)(j)		7.65	%		7.20	%		7.16	%		7.33	%		8.29	%		7.48	%		9.09	%
Return on average assets ^(g)(j)		0.39	%		0.36	%		0.39	%		0.37	%		0.43	%		0.38	%		0.46	%
Other non-interest income (loss)		32			19			21			25			35			72			88
Operating expenses ^(h)		52			52			52			56			52			156			154
Voluntary Contributions		7			4			3			26			8			14			12
Other expenses ^(k)		8			8			8			8			9			24			23
Total Operating and Other expenses		66			64			63			90			69			193			189
Operating expenses ratio ^(g)(i)(j)		0.13	%		0.12	%		0.13	%		0.14	%		0.12	%		0.13	%		0.12	%
Earnings per share	$	2.77		$	2.51		$	2.66		$	2.59		$	2.94		$	7.94		$	9.42
Dividends per share	$	1.90		$	1.84		$	2.33		$	2.32		$	2.36		$	6.07		$	7.18
Headcount (Full/part time)		375			379			385			382			374			375			374

(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 $3.5 million, $3.2 million, $3.2 million, $3.1 million, and $2.6 million for the periods ended September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024 and September 30, 2024, 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


					Net change in		Net change in
(Dollars in thousands)	September 30, 2025		December 31, 2024		dollar amount		percentage
Assets
Cash and due from banks	$	30,240	$	26,141	$	4,099	15.68	%
Interest-bearing deposits		3,025,000		2,770,000		255,000	9.21
Securities purchased under agreements to resell		13,145,000		10,895,000		2,250,000	20.65
Federal funds sold		9,465,000		9,415,000		50,000	0.53
Trading securities		7,345,282		7,237,940		107,342	1.48
Equity Investments		103,409		95,422		7,987	8.37
Available-for-sale securities		11,703,379		9,987,284		1,716,095	17.18
Held-to-maturity securities		11,094,796		10,865,935		228,861	2.11
Advances		96,219,305		105,838,238		(9,618,933)	(9.09)
Mortgage loans held-for-portfolio		2,560,173		2,345,395		214,778	9.16
Accrued interest receivable		538,891		571,199		(32,308)	(5.66)
Premises, software, and equipment		79,999		78,966		1,033	1.31
Operating lease right-of-use assets		45,623		49,550		(3,927)	(7.93)
Finance lease right-of-use assets		1,649		2,003		(354)	(17.67)
Derivative assets		69,169		97,344		(28,175)	(28.94)
Other assets		7,567		24,531		(16,964)	(69.15)
Total assets	$	155,434,482	$	160,299,948	$	(4,865,466)	(3.04)	%

Liabilities
Deposits
Interest-bearing demand	$	2,919,554	$	2,415,356	$	504,198	20.87	%
Non-interest-bearing demand		4,031		14,028		(9,997)	(71.26)
Total deposits		2,923,585		2,429,384		494,201	20.34
Consolidated obligations
Bonds		82,326,031		80,552,135		1,773,896	2.20
Discount notes		60,972,978		67,858,939		(6,885,961)	(10.15)
Total consolidated obligations		143,299,009		148,411,074		(5,112,065)	(3.44)
Mandatorily redeemable capital stock		9,190		4,509		4,681	103.81
Accrued interest payable		626,179		604,267		21,912	3.63
Affordable Housing Program		230,300		231,447		(1,147)	(0.50)
Derivative liabilities		17,770		13,357		4,413	33.04
Other liabilities		141,738		133,503		8,235	6.17
Operating lease liabilities		56,255		60,853		(4,598)	(7.56)
Finance lease liabilities		1,686		2,025		(339)	(16.74)
Total liabilities		147,305,712		151,890,419		(4,584,707)	(3.02)
Capital		8,128,770		8,409,529		(280,759)	(3.34)
Total liabilities and capital	$	155,434,482	$	160,299,948	$	(4,865,466)	(3.04)	%

Balance Sheet overview September 30, 2025 and December 31, 2024

Total assets decreased to $155.4 billion at September 30, 2025, from $160.3 billion at December 31, 2024, a decrease of $4.9 billion, or 3.1%.

Cash at banks was $30.2 million at September 30, 2025, compared to $26.1 million at December 31, 2024.

Money market investments increased $2.5 billion at September 30, 2025 to $25.6 billion, as compared to $23.1 billion at December 31, 2024. We continue to ensure an ample supply of funds to meet liquidity demands. Federal funds sold averaged $18.1 billion, $19.5 billion and $19.3 billion in the third quarter of 2025, the fourth quarter of 2024 and the third quarter of 2024, respectively. Resale agreements averaged $7.5 billion, $3.8 billion and $5.1 billion in the third quarter of 2025, the fourth quarter of 2024 and the third quarter of 2024, respectively. Money market investments also included interest-bearing deposits at highly-rated financial institutions. Balances were $3.0 billion and $2.8 billion at September 30, 2025 and December 31, 2024, respectively.

Advances- Par balances decreased at September 30, 2025 to $96.4 billion, compared to $106.5 billion at December 31, 2024. Short-term fixed-rate advances decreased by 8.4% to $14.5 billion at September 30, 2025, down from $15.8 billion at December 31, 2024. ARC advances, which are adjustable-rate borrowings, decreased by 12.7% to $28.8 billion at September 30, 2025, compared to $33.0 billion at December 31, 2024.

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.

In the AFS portfolio, long-term investments of floating-rate GSE-issued mortgage-backed securities were carried on the balance sheet at fair values of $304.6 million at September 30, 2025 and $343.0 million at December 31, 2024. Fixed-rate long-term investments in the AFS portfolio, comprised of fixed-rate GSE-issued mortgage-backed securities, were carried on the balance sheet at fair values of $9.4 billion at September 30, 2025 and $8.3 billion at December 31, 2024. We acquired $0.9 billion (par) of fixed-rate GSE-issued MBS in the first three quarters of 2025. In the third quarter of 2025, we acquired $550 million (par) of fixed-rate U.S. Treasury securities.

State and local housing finance agency obligations, primarily New York and New Jersey, were carried as AFS securities at $1.4 billion at September 30, 2025 and at $1.3 billion at December 31, 2024.

In the HTM portfolio, long-term investments were predominantly GSE-issued fixed- and floating-rate mortgage-backed securities and a small portfolio of housing finance agency bonds. Fixed- and floating-rate mortgage-backed securities in the HTM portfolio were $10.9 billion at September 30, 2025 and $10.7 billion at December 31, 2024. We acquired $1.6 billion (par) of floating-rate GSE-issued MBS in the first three quarters of 2025.

State and local housing finance agency obligations, primarily New York and New Jersey, were carried as HTM securities at $0.2 billion at September 30, 2025 and December 31, 2024.

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. At September 30, 2025 and December 31, 2024, trading investments were $7.3 billion and $7.2 billion in U.S. Treasury securities.

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.

Equity Investments- We own grantor trusts that invest in highly-liquid registered mutual funds. Funds are classified as Equity Investments and were carried on the balance sheet at fair values of $103.4 million at September 30, 2025 and $95.4 million at December 31, 2024.

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 $1.5 billion at September 30, 2025, a decrease of $104.2 million from the balance at December 31, 2024. Loans are primarily fixed-rate, single-family mortgages acquired through the MPF Program. Unpaid principal balance of MAP loans stood at $1.1 billion at September 30, 2025, an increase of $311.9 million from the balance at December 31, 2024. Paydowns for the total portfolio for the nine months ended September 30, 2025 were $149.1 million compared to $135.1 million for the same period in 2024. Acquisitions for the nine months ended September 30, 2025 were $367 million compared to $264.5 million for the same period in 2024. Historically, credit performance has been strong and delinquency low. Loan origination by members and acceptable pricing are key factors that drive acquisitions. With interest rates remaining high, refinancing and home sales have declined, resulting in fewer MAP eligible loans are available for purchases from the members. Residential collateral values have remained stable in the New York and New Jersey sectors, the primary geographic concentration for our mortgage loan portfolio, and historical loss experience remains very low. Serious delinquencies (typically 90 days or more) at September 30, 2025 were lower than December 31, 2024. Allowance for credit losses increased to $3.5 million at September 30, 2025 compared to $3.1 million at December 31, 2024.

Leverage- On September 30, 2025, balance sheet leverage (based on U.S. GAAP) was 19.1 times shareholders' equity, the same figure reported on December 31, 2024. 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 September 30, 2025 included $27.5 million as demand cash balances at the FRBNY, $22.6 billion in short-term and overnight investments in the federal funds and resale agreements, $9.7 billion of high credit quality GSE-issued available-for-sale securities that are investment grade and readily marketable and $560.1 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.

Credit Risk Management Framework

As part of an effort to evolve our Credit Risk Management Framework to better align it with the current regulatory environment, the FHLBNY enhanced its credit oversight and credit rating methodology to assess the financial condition of member institutions. The Framework updates were implemented in the third quarter of 2024.

The FHLBNY utilizes the Credit Risk Rating Framework to conduct a comprehensive assessment of the financial condition of each member institution on a quarterly basis. The enhanced credit rating process employs a financial framework that assesses current regulatory financial statements as baseline, and then considers supplementary qualitative and quantitative information (e.g., call report ratios vs peers, regulatory exam results, changes in NRSRO ratings, media coverage, stock price, credit default swap spreads, deposit trends, management vacancies). The Framework considers these various factors to arrive at a final credit risk rating score that is representative of the credit risk profile of the member.

Our approach to credit risk underwriting aligns with an Advisory Bulletin published by the Federal Housing Finance Agency on September 27, 2024, which emphasize the need for an enhanced focus on a member's ability to repay its obligations in the ordinary course of business versus relying on collateral for supporting the extension of credit. This Framework will continue to be refined, and we will continue to monitor for regulatory guidance that may impact this Framework in the future.

Advances

Our primary business is making collateralized loans to members, referred to as advances. Generally, the growth or decline in advances is reflective of demand by members for both short-term liquidity and term funding. This demand is driven by economic factors such as availability of alternative funding sources that are more attractive, or by the interest rate environment and the outlook for the economy. Members may choose to prepay advances (which may generate prepayment fees) based on their expectations of interest rate changes and demand for liquidity.

Advance volume is also influenced by merger activity, where members are either acquired by non-members or acquired by members of another FHLBank. When our members are acquired by members of another FHLBank or by non-members, these former members no longer qualify for membership, and we may not offer renewals or additional advances to the former members. If maturing advances are not replaced, it may have an impact on business volume.

Interest rate hedging and basis adjustments - A significant percentage of fixed-rate, longer-term advances and all putable advances were designated under an ASC 815 fair value accounting hedge. From time to time, certain advances are hedged by interest rate swaps in economic hedges and the fair value option (FVO) is elected on an instrument-by-instrument basis for advances.

Carrying values of advances outstanding were $96.2 billion at September 30, 2025 and $105.8 billion at December 31, 2024. Carrying values included cumulative hedging basis adjustment losses of $0.2 billion at September 30, 2025 and $0.7 billion at December 31, 2024.

Table 2.1 Advance Trends

Member demand for advance products

Future demand from our members for advances is difficult to forecast as it is uncertain what the impact will be on our members' businesses from multiple uncertainties, including supply of deposits and other funding to members' businesses, risk of credit losses, and other potential disruptions to our members' businesses.

Our regulator, the Federal Housing Finance Agency, has a tangible capital requirement for members that differs from their primary regulators' definition. If a member has negative tangible capital, primarily as a result of negative fair value marks on investment securities held as 'Available for Sale' due to a rise in interest rates, the Bank is not permitted to extend a new advance, unless the member's appropriate federal banking agency or state insurance regulator requests in writing that the Bank make such advance. Further, advance renewals to this member would be limited to a maximum term of 30 days; the 30-day renewals may continue unless we are directed in writing by the member's primary regulator to stop. At this time, only a few of our members may not be meeting the FHFA's tangible capital requirements. While this issue is not viewed as a material risk to the Bank, it is possible that the Bank may lose some advance business to other liquidity providers in cases where FHFA tangible capital violations occur or appear imminent. The Bank's business reputation with its members and our reputation as a reliable provider of liquidity with our members' primary regulators may also be harmed. The Bank continues to monitor this situation, including the impact of rising interest rates on our members' tangible capital and any future actions that the regulators may take.

The FHFA in its "FHLBank System at 100: Focusing on the Future" report (System at 100 Report) released in November 2023 stated that the FHFA has communicated its expectation that the FHLBanks revisit their policies, procedures, and systems for evaluating the financial condition of members. The System at 100 Report and the FHFA's Advisory Bulletin AB 2024-03, published September 27, 2024, state that the FHLBanks must evaluate members' financial condition and ability to repay advances and noted that while pledged collateral may protect an FHLBank against risk of loss, it only serves as a backup source of repayment if the member cannot repay the advance. The FHFA has initiated multiple actions to strengthen member risk management by the FHLBanks. The System at 100 Report and Advisory Bulletin 2024-03 emphasize that the FHLBanks are not "lenders of last resort" and need to coordinate with members' primary regulators and the Federal Reserve Banks to facilitate the transition of troubled members to the Federal Reserve's discount window. These comments from the FHFA and potential related actions by policy makers or member regulators may cause financially healthy members to reduce their advances or amount of excess collateral pledged to the Bank. This may make it more difficult for the Bank to provide liquidity in support of members that are experiencing temporary liquidity difficulties.

Advances - Product Types

The following table summarizes par values of advances by product type (dollars in thousands):

Table 2.2 Advances by Product Type


	September 30, 2025					December 31, 2024
			Percentage					Percentage
	Amounts		of Total			Amounts		of Total
Adjustable Rate Credit - ARCs	$	28,817,000		29.89	%	$	33,022,000	30.99	%
Fixed Rate Advances		47,780,053		49.56			52,283,871	49.08
Short-Term Advances		14,460,160		15.00			15,789,348	14.82
Mortgage Matched Advances		328,230		0.34			385,448	0.36
Overnight & Line of Credit (OLOC) Advances		3,046,170		3.16			2,657,287	2.49
All other categories		1,975,381		2.05			2,411,645	2.26
Total par value		96,406,994		100.00	%		106,549,599	100.00	%
Advance discounts		(12,930)					(11,117)
Hedge valuation basis adjustments		(174,759)					(700,244)
Total	$	96,219,305				$	105,838,238

Member Pledged Collateral

Member borrowers are required to maintain an amount of eligible collateral that adequately secures their outstanding obligations with the FHLBNY. Eligible collateral includes: (1) one-to-four-family mortgages; (2) multi-family & commercial real estate mortgages; (3) Treasury and U.S. government agency securities; (4) private-label commercial mortgage-backed securities; and (5) certain other collateral that is real estate-related, provided that such collateral has a readily ascertainable value, can be liquidated in due course, and the Bank has the ability to perfect its security interest. The FHLBNY also has a statutory lien priority with respect to certain member assets under the FHLBank Act as well as a claim on FHLBNY capital stock held by our members. The FHLBNY's loan and collateral agreements give the Bank security interest in assets held by borrowers that is sufficient to cover their obligations to the FHLBNY. FHLBNY may supplement this security interest by imposing additional collateral delivery requirements on our member borrowers based on the overall financial strength of the member. To ensure that the FHLBNY has sufficient collateral to cover credit extensions, the FHLBNY has established a Collateral Lendable Value methodology. This methodology ensures that the FHLBNY remains fully collateralized by establishing risk-based lendable values for each pledged collateral type. These lendable values are periodically reassessed to ensure that they are reflective of current market conditions.

The following table summarizes pledged collateral (in thousands):

Table 2.3 Collateral Supporting Indebtedness to Members


	Indebtedness						Collateral ^(a)
			Other		Total				Securities and
	Advances^(b)		Obligations ^(c)		Indebtedness		Loans ^(d)		Deposits ^(d)		Total^(d)
September 30, 2025	$	96,406,994	$	23,540,887	$	119,947,881	$	373,230,036	$	71,365,593	$	444,595,629
December 31, 2024	$	106,549,599	$	20,755,380	$	127,304,979	$	363,403,141	$	70,196,673	$	433,599,814

(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 (MPFCE).

(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				Total
	Physical		Collateral		Collateral
	Possession		Specifically Listed		Received
September 30, 2025	$	72,591,689	$	372,003,940	$	444,595,629
December 31, 2024	$	71,702,496	$	361,897,318	$	433,599,814

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


	September 30, 2025				December 31, 2024
			Percentage				Percentage
	Amount		of Total		Amount		of Total
Fixed-rate ^(a)	$	66,767,994	69.25	%	$	72,670,599	68.20	%
Variable-rate ^(b)		29,639,000	30.75			33,879,000	31.80

Total par value		96,406,994	100.00	%		106,549,599	100.00	%
Advance discounts		(12,930)				(11,117)
Hedge valuation basis adjustments		(174,759)				(700,244)
Total	$	96,219,305			$	105,838,238

(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 September 30, 2025, with only 2.1% of advances in the remaining maturity bucket of greater than 5 years (2.9% at December 31, 2024). 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


	September 30, 2025					December 31, 2024				Change
Redemption Term (dollars in thousands)	Amount		Percentage			Amount		Percentage		Amount		Percentage
Fixed-rate
Due in 1 year or less	$	43,496,315		45.12	%	$	45,365,357	42.58	%	$	(1,869,042)	(4.12)	%
Due after 1 year through 3 years		13,430,023		13.93			15,485,706	14.53			(2,055,683)	(13.27)
Due after 3 years through 5 years		7,272,971		7.54			8,074,063	7.58			(801,092)	(9.92)
Due after 5 years through 15 years		732,955		0.76			1,782,025	1.67			(1,049,070)	(58.87)
Thereafter		-		-			-	-			-	NM
Total principal amount		64,932,264		67.35			70,707,151	66.36			(5,774,887)	(8.17)

Fixed-rate, putable
Due in 1 year or less		57,000		0.06			-	-			57,000	NM
Due after 1 year through 3 years		445,500		0.46			738,000	0.69			(292,500)	(39.63)
Due after 3 years through 5 years		710,500		0.73			507,000	0.48			203,500	40.14
Due after 5 years through 15 years		294,500		0.31			333,000	0.31			(38,500)	(11.56)
Thereafter		-		-			-	-			-	NM
Total principal amount		1,507,500		1.56			1,578,000	1.48			(70,500)	(4.47)

Variable-rate
Due in 1 year or less		22,874,000		23.73			23,139,000	21.72			(265,000)	(1.15)
Due after 1 year through 3 years		4,740,000		4.92			7,740,000	7.26			(3,000,000)	(38.76)
Due after 3 years through 5 years		1,025,000		1.06			2,000,000	1.88			(975,000)	(48.75)
Due after 5 years through 15 years		1,000,000		1.04			1,000,000	0.94			-	-
Thereafter		-		-			-	-			-	NM
Total principal amount		29,639,000		30.75			33,879,000	31.80			(4,240,000)	(12.52)

Other ^(a)
Due in 1 year or less		74,450		0.08			75,840	0.07			(1,390)	(1.83)
Due after 1 year through 3 years		214,854		0.22			150,500	0.14			64,354	42.76
Due after 3 years through 5 years		36,871		0.04			156,875	0.15			(120,004)	(76.50)
Due after 5 years through 15 years		2,055		-			2,233	-			(178)	(7.97)
Thereafter		-		-			-	-			-	NM
Total principal amount		328,230		0.34			385,448	0.36			(57,218)	(14.84)

Total principal amount advances		96,406,994		100.00	%		106,549,599	100.00	%		(10,142,605)	(9.52)	%
Other adjustments, net ^(b)		(187,689)					(711,361)				523,672
Total advances	$	96,219,305				$	105,838,238			$	(9,618,933)

(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.

NM - Not meaningful.

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	September 30, 2025		December 31, 2024
Qualifying hedges
Fixed-rate bullets ^(a)	$	46,885,437	$	50,683,456
Fixed-rate putable ^(b)		1,507,500		1,578,000
Fixed-rate with embedded cap		80,000		-
Total qualifying hedges	$	48,472,937	$	52,261,456

Aggregate par amount of advances hedged ^(c)	$	51,026,337	$	55,474,669
Fair value basis (hedging adjustments) ^(d)	$	(174,759)	$	(700,244)

(a)

Generally, fixed-rate medium- and longer-term advances are hedged to mitigate the risk in fixed-rate lending.

(b)

Putable advances are hedged by cancellable swaps, and the paired long put option mitigate the put option risks; in the hedge, fixed-rate cash flows are also synthetically converted to benchmark floating-rate.

(c)

Represents par values of advances in ASC 815 hedge relationships. Amounts include advances that were in ASC 815 hedges but have since been de-designated or advances that are in economic hedges (not qualifying as ASC 815 accounting hedge).

(d)

Fair value basis hedging adjustments included immaterial balances of unamortized basis as a result of de-designation hedges.

Economic hedges of floating-rate advances - From time to time, we issue floating-rate advances indexed to benchmark rates (Federal Funds-OIS and SOFR-OIS) and may then execute interest rate basis swaps that would synthetically convert the cash flows to the desired floating-rate cash flows indexed to another benchmark to meet our asset/liability funding strategies. At September 30, 2025 and December 31, 2024, there were no basis swaps outstanding. The carrying value of the advances in the economic hedge would not include fair value basis since the advance is recorded at amortized cost.

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	September 30, 2025		December 31, 2024
Putable ^(a)	$	1,507,500	$	1,578,000
No-longer putable/callable	$	219,000	$	22,000

(a)

Putable advances were typically long-term advances with one or more put options exercisable by the FHLBNY. Putable advances are hedged in an ASC 815 qualifying fair value hedge with mirror image terms, including mirror image put option terms.

Investments

We maintain long-term investment portfolios of debt securities, which are principally mortgage-backed securities issued by GSEs and U.S. Agency (GSE-issued). Investments include a small portfolio of bonds issued by state or local housing finance agencies and U.S. Treasury securities. We also maintain short-term investments for our liquidity resources, for funding daily stock repurchases and redemptions, for ensuring the availability of funds to meet the credit needs of our members, and to provide additional earnings. We also invest in a liquidity trading portfolio, the purpose of which is to augment our liquidity needs. Investments in the trading portfolio are typically U.S. Treasury securities, and from time to time we have also invested in GSE-issued securities, all carried at their fair values. The Finance Agency prohibits speculative investments but allows the designation of a trading portfolio for liquidity purposes. We may dispose of such investments if we do not need them for liquidity purposes and market conditions deem the sale as advantageous.

We are subject to credit risk on our investments, generally transacted with GSEs and large financial institutions that are considered to be investment quality. The Finance Agency defines investment quality as a security with adequate financial backing so that full and timely payment of principal and interest on such security is expected and there is minimal risk that the timely payment of principal and interest would not occur because of adverse changes in economic and financial conditions during the projected life of the security.

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


	September 30,		December 31,		Dollar		Percentage
	2025		2024		Variance		Variance
State and local housing finance agency obligations, net ^(a)
Available-for-sale securities, at fair value	$	1,445,676	$	1,297,431	$	148,245	11.43	%
Held-to-maturity securities, at carrying value, net		154,893		159,100		(4,207)	(2.64)
Total HFA securities		1,600,569		1,456,531		144,038	9.89

U.S. Treasury notes, available-for-sale at fair value		560,054		-		560,054	100.00
Trading securities ^(b)		7,345,282		7,237,940		107,342	1.48
Mortgage-backed securities
Available-for-sale securities, at fair value ^(c)		9,697,649		8,689,853		1,007,796	11.60
Held-to-maturity securities, at carrying value, net ^(c)		10,939,903		10,706,835		233,068	2.18
Total MBS securities		20,637,552		19,396,688		1,240,864	6.40

Equity investments in Grantor trusts ^(d)		103,409		95,422		7,987	8.37
Interest-bearing deposits		3,025,000		2,770,000		255,000	9.21
Securities purchased under agreements to resell		13,145,000		10,895,000		2,250,000	20.65
Federal funds sold		9,465,000		9,415,000		50,000	0.53
Total Investments	$	55,881,866	$	51,266,581	$	4,615,285	9.00	%

(a)

State and local housing finance agency bonds are designated as both AFS, carried at fair values and HTM, carried at carrying value. There was an acquisition of $150.0 million of AFS State and local housing finance agency bonds for the nine months ending September 30, 2025. Paydowns from HTM portfolio were $4.2 million and paydowns from the AFS portfolio were $3.6 million for the same period.

(b)

Trading securities comprised of U.S. Treasury securities at September 30, 2025 and are carried at fair value. Trading portfolio is for liquidity and not for speculative purposes. We acquired and sold $3.5 billion par of U.S. Treasury securities in the nine months ended September 30, 2025.

(c)

AFS securities outstanding were GSE and U.S. Agency issued MBS and carried at fair values. MBS in the HTM portfolio were predominantly GSE-issued.

(d)

Funds in the grantor trusts are designated as equity investments and are carried at fair value. Trust fund balances represent investments in registered fixed-income and equity mutual funds and money market funds. Funds are highly liquid and readily redeemable at their NAVs, which are the fair values of the investments. The funds are owned by the FHLBNY, and the intent is to utilize investments to fund current and potential future payment obligations of the non-qualified employee retirement plans.

The following table summarizes our investment debt securities issuer concentration (dollars in thousands):

Table 3.2 Investment Debt Securities Issuer Concentration


	September 30, 2025						December 31, 2024
					Carrying value as						Carrying value as
	Carrying ^(a)				a Percentage		Carrying ^(a)				a Percentage
Long Term Investment ^(c)	Value		Fair Value		of Capital		Value		Fair Value		of Capital
MBS
Fannie Mae	$	2,282,790	$	2,277,219	28.08	%	$	1,998,068	$	1,987,125	23.76	%
Freddie Mac		18,349,526		18,224,332	225.74			17,366,261		17,086,112	206.51
Ginnie Mae		5,237		5,237	0.06			5,796		5,796	0.07
All Others - PLMBS ^(d)		-		-	-			26,563		30,293	0.32
Non-MBS, net ^(b)		2,160,622		2,156,324	26.58			1,456,531		1,447,232	17.32
Total Investment Debt Securities	$	22,798,175	$	22,663,112	280.46	%	$	20,853,219	$	20,556,558	247.98	%


Categorized as:

Available-for-Sale Securities	$	11,703,379	$	11,703,379			$	9,987,284	$	9,987,284

Held-to-Maturity Securities, net	$	11,094,796	$	10,959,733			$	10,865,935	$	10,569,274

(a)

Carrying values include fair values for AFS securities.

(b)

Non-MBS - Includes Housing finance agency bonds and U.S. Government securities.

(c)

Excludes Trading portfolio.

(d)

In the third quarter of 2025, the Bank sold all remaining securities in our PLMBS portfolio.

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


	September 30, 2025
									Below
									Investment
	AAA-rated ^(a)		AA-rated ^(b)		A-rated		BBB-rated		Grade		Total
Mortgage-backed securities	$	-	$	10,939,903	$	-	$	-	$	-	$	10,939,903
State and local housing finance agency obligations		-		154,893		-		-		-		154,893
Total Long-term securities	$	-	$	11,094,796	$	-	$	-	$	-	$	11,094,796


	December 31, 2024
									Below
									Investment
	AAA-rated ^(a)		AA-rated^(b)		A-rated		BBB-rated		Grade		Total
Mortgage-backed securities	$	114	$	10,681,180	$	16,627	$	985	$	7,929	$	10,706,835
State and local housing finance agency obligations		-		159,100		-		-		-		159,100
Total Long-term securities	$	114	$	10,840,280	$	16,627	$	985	$	7,929	$	10,865,935

See footnotes (a) and (b) under Table 3.4.

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


	September 30, 2025
									Below
									Investment
	AAA-rated ^(a)		AA-rated ^(b)		A-rated		BBB-rated		Grade		Total
Mortgage-backed securities	$	-	$	9,697,649	$	-	$	-	$	-	$	9,697,649
Housing and U.S. Obligations		158,472		1,847,258		-		-		-		2,005,730
Total Long-term securities	$	158,472	$	11,544,907	$	-	$	-	$	-	$	11,703,379


	December 31, 2024
									Below
									Investment
	AAA-rated ^(a)		AA-rated ^(b)		A-rated		BBB-rated		Grade		Total
Mortgage-backed securities	$	-	$	8,689,853	$	-	$	-	$	-	$	8,689,853
Housing and U.S. Obligations		161,979		1,135,452		-		-		-		1,297,431
Total Long-term securities	$	161,979	$	9,825,305	$	-	$	-	$	-	$	9,987,284

Footnotes to Table 3.3 and Table 3.4.

(a)

Certain housing finance bonds have been assigned AAA, based on the ratings by S&P and Moody's. In the third quarter of 2025, the Bank sold all the remaining securities in our PLMBS portfolio.

(b)

We have assigned GSE-issued MBS a rating of AA+ based on the credit rating assigned to long-term senior debt issued by Fannie Mae, Freddie Mac, and U.S. Agency. The debt ratings are based on S&P's rating of AA+ for the GSE Senior long-term debt and AA+ for the debt issued by the U.S. government. In May 2025, Moody's debt rating for the GSE Senior long-term debt and the U.S. government was downgraded to Aa1 from Aaa.

External credit rating information has been provided in Table 3.3 and Table 3.4 as the information is used as another data point to supplement our credit quality indicators, and they serve as a useful indicator when analyzing the degree of credit risk to which we are exposed. Significant changes in credit ratings classifications of our investment debt securities portfolio could indicate increased credit risk for us that could be accompanied by a reduction in the fair values of our investment debt securities portfolio.

Fair Value Levels of Investment Debt Securities

To compute fair values, multiple vendor prices were received for substantially all of our MBS holdings, and substantially all of those prices fell within specified thresholds. The relative proximity of the prices received from the multiple vendors supported our conclusion that the final computed prices were reasonable estimates of fair values. GSE securities priced under such a valuation technique using the market approach are typically classified within Level 2 of the valuation hierarchy.

The fair value of State and local housing finance agency obligations is estimated by management using information primarily from pricing services. Due to the current lack of significant market activity, their fair values were categorized as Level 3 of the valuation hierarchy. For a comparison of carrying values and fair values of investment debt securities, see financial statements, Note 5. Trading securities, Note 7. Available-for-Sale Securities and Note 8. Held-to-Maturity Securities. For more information about the corroboration and other analytical procedures performed, see Note 18. Fair Values of Financial Instruments. Also see Note 7. Available-for-sale securities for an explanation of amortized cost for securities hedged under ASC 815 fair value hedges.

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


	September 30, 2025				December 31, 2024
	Amortized		Weighted		Amortized		Weighted
	Cost		Average Rate ^(a)		Cost		Average Rate ^(a)
Mortgage-backed securities
Due in one year or less	$	1,048,268	3.17	%	$	707,129	3.06	%
Due after one year through five years		7,387,893	3.24			7,838,114	3.43
Due after five years through ten years		8,100,558	3.70			7,888,662	3.59
Due after ten years		4,183,408	4.84			3,129,019	4.77
Total Mortgage-backed securities	$	20,720,127	3.74	%	$	19,562,924	3.70	%

(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
	September 30, 2025		December 31, 2024
Current face value of hedged CMBS	$	8,475,065	$	7,742,462
Partial-term hedge face value of hedged CMBS	$	7,667,000	$	6,980,000
Cumulative basis adjustment gains (losses) ^(a)	$	(342,363)	$	(634,699)
Interest rate swap contracts (par)	$	7,667,000	$	6,980,000

(a)	Cumulative basis adjustment gains (losses) at September 30, 2025 and December 31, 2024 included immaterial balances of unamortized basis as a result of de-designation hedges.

Short-term investments

We typically maintain substantial investments in high quality short- and intermediate-term financial instruments such as secured overnight transactions collateralized by securities, including unsecured overnight and term deposits and federal funds sold to highly-rated financial institutions who also satisfy other credit quality factors. These investments provide the liquidity necessary to meet members' credit needs. Short-term investments also provide a flexible means of implementing the asset/liability management decisions to adjust liquidity. We also invest in a liquidity trading portfolio, consisting of U.S. Treasury securities, with the objective of satisfying our liquidity requirements and expanding our choice of investing for liquidity.

Monitoring - We actively monitor our credit exposures and the credit quality of our counterparties, including an assessment of each counterparty's financial performance, capital adequacy, and sovereign support as well as related market signals, and actively limit or suspend existing exposures, as appropriate. In addition, we are required to manage our unsecured portfolio subject to regulatory limits prescribed by our regulator, the Finance Agency. The Finance Agency regulations include limits on the amount of unsecured credit that may be extended to a counterparty or a group of affiliated counterparties, based upon a percentage of eligible regulatory capital and the counterparty's overall credit rating. Under these regulations, the level of eligible regulatory capital is determined as the lesser of our regulatory capital or the eligible amount of regulatory capital of the counterparty determined in accordance with Finance Agency regulations.

The Finance Agency regulations also permit us to extend additional unsecured credit, which could be comprised of overnight extensions and sales of federal funds subject to continuing contract. Our total unsecured overnight exposure to a single counterparty may not exceed twice the regulatory limit for term exposures. We are prohibited by Finance Agency regulation from investing in financial instruments issued by non-U.S. entities other than those issued by U.S. branches and agency offices of foreign commercial banks, and we did not own any financial instruments issued by foreign sovereign governments, including those countries that are members of the European Union in any periods in this report.

Securities purchased under agreements to resell - As part of our banking activities with counterparties, we have entered into secured financing transactions that mature overnight and can be extended only at our discretion. These transactions involve the lending of cash against securities, which are accepted as collateral. The balance outstanding under such agreements were $13.1 billion at September 30, 2025 and $10.9 billion at December 31, 2024. Resale agreements averaged $7.5 billion and $3.8 billion in the third quarter of 2025, and the fourth quarter of 2024, respectively. For more information, see financial statements, Note 4. Interest-bearing Deposits, Federal Funds Sold and Securities Purchased under Agreements to Resell.

Federal funds sold - Federal funds sold was $9.5 billion at September 30, 2025 and $9.4 billion at December 31, 2024 and averaged $18.1 billion and $19.5 billion in the third quarter of 2025 and the fourth quarter of 2024, respectively. Investments represent unsecured lending to major banks and financial institutions. We are a major lender in this market, particularly in the overnight market. The amount of unsecured credit risk that may be extended to individual counterparties is commensurate with the counterparty's credit quality as assessed by our management, and the assessment would include reviews of credit ratings of counterparty's debt securities or deposits as reported by NRSROs. Overnight and short-term federal funds allow us to warehouse funds and provide balance sheet liquidity to meet unexpected member borrowing demands.

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
	September 30, 2025		December 31, 2024
Par value	$	7,550,925	$	7,620,925
Amortized cost	$	7,466,675	$	7,475,474
Carrying/Fair value	$	7,345,282	$	7,237,940

The Finance Agency prohibits speculative investments but allows permitted securities to be deemed held for liquidity if invested in a trading portfolio. We may dispose of such investments if we do not need them for liquidity purposes and market conditions deem the sale as advantageous. For more information about fair values of securities in the trading portfolio, see Note 5. Trading Securities in the Notes to the Financial Statements.

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
	September 30, 2025		December 31, 2024
Par/Face amounts of portfolio of U.S. Treasury fixed-rate securities ^(a)	$	7,550,925	$	7,620,925
Par amounts of interest rate swaps	$	7,523,057	$	7,577,594

(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 $1.5 billion at September 30, 2025, an increase of $104.2 million (net of acquisitions and paydowns) from the balance at December 31, 2024. Mortgage loan balances increased due to an increase in acquisitions. During 2025, the Bank purchased $367.0 million of mortgage loans from members and paydowns were $149.1 million. Mortgage loans were investments in MPF and MAP. Serious delinquencies at September 30, 2025 were lower than December 31, 2024. Allowance for credit losses were $3.5 million at September 30, 2025 and $3.1 million at December 31, 2024.

Mortgage Asset Program - The MAP program is a residential housing finance program in which the FHLBNY funds or purchases loans originated by members or affiliates. The FHLBNY offers the MAP as a secondary market outlet for its Participating Financial Institution members to fund mortgages and be competitive in offering fixed-rate mortgage loan products.

Mortgage Partnership Finance Program - We invested in mortgage loans through the MPF Program, which is a secondary mortgage market structure under which eligible mortgage loans are purchased or funded from or through members who are Participating Financial Institution (PFI). We may also acquire MPF loans through participations with other FHLBanks. MPF loans are conforming, conventional, and government insured i.e., insured or guaranteed by the FHA, the Department of Veterans Affairs (VA) or the Rural Housing Service of the Department of Agriculture (RHS), fixed-rate mortgage loans secured primarily by single-family residential properties with maturities ranging from five to 30 years or participations in such mortgage loans. The FHLBank of Chicago (MPF Provider) developed the MPF Program in order to help fulfill the housing mission and to provide an additional source of liquidity to FHLBank members that choose to sell mortgage loans into the secondary market rather than holding them in their own portfolios. Finance Agency regulations define the acquisition of Acquired Member Assets (AMA) as a core mission activity of the FHLBanks. In order for MPF loans to meet the AMA requirements, the purchase and funding are structured so that the credit risk associated with MPF loans is shared with PFIs.

Mortgage loans - Conventional and Insured Loans - The following table classifies mortgage loans between conventional loans and loans insured by FHA/VA (in thousands):

Table 4.1 Mortgage Loans by Conventional and Insured Loans


	September 30, 2025		December 31, 2024
Federal Housing Administration and Veteran Administration insured loans	$	111,409	$	117,689
Conventional loans		2,452,233		2,230,760
Allowance for credit losses on mortgage loans		(3,470)		(3,054)
Total mortgage loans held-for-portfolio, net ^(a)	$	2,560,173	$	2,345,395

Loan and PFI Concentration - Loan concentration was in New York State, which is to be expected since many of the largest PFIs are located in New York. The tables below summarize concentrations - Geographic and PFI.

Table 4.2 Geographic Concentration of Mortgage Loans


	September 30, 2025				December 31, 2024
	Number of loans %		Amounts outstanding %		Number of loans %		Amounts outstanding %
New York State	69.7	%	62.5	%	71.2	%	64.5	%

Table 4.3 Top Five Participating Financial Institutions - Concentration (par value, dollars in thousands):


	September 30, 2025
	Mortgage		Percent of Total
	Loans		Mortgage Loans
OceanFirst Bank	$	253,066	10.05	%
The Lyons National Bank		183,185	7.28
Teachers Federal Credit Union		159,778	6.35
Manasquan Bank		124,809	4.96
FourLeaf Federal Credit Union ^(a)		121,881	4.84
All Others		1,675,176	66.53
Total ^(b)	$	2,517,894	100.00	%


	December 31, 2024
	Mortgage		Percent of Total
	Loans		Mortgage Loans
Bethpage Federal Credit Union ^(a)	$	190,533	8.25	%
Teachers Federal Credit Union		157,597	6.82
OceanFirst Bank		135,235	5.85
The Lyons National Bank		128,751	5.57
Flagstar Bank, N.A.		127,288	5.51
All Others		1,570,830	68.00
Total ^(b)	$	2,310,234	100.00	%

(a)	Effective March 3, 2025, Bethpage Federal Credit Union was renamed to FourLeaf Federal Credit Union.

(b)	Includes MPF unpaid principal balances of $1.5 billion as of September 30, 2025 and $1.6 billion as of December 31, 2024, and MAP unpaid principal balances of $1.1 billion as of September 30, 2025 and $0.7 billion as of December 31, 2024.

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 $143.3 billion and $148.4 billion at September 30, 2025 and December 31, 2024, respectively.

CO bonds and CO discount notes - The carrying value of Consolidated obligation bonds was $82.3 billion (par, $82.3 billion) at September 30, 2025, compared to $80.6 billion (par, $81.1 billion) at December 31, 2024. The carrying value of Consolidated obligation discount notes outstanding was $61.0 billion at September 30, 2025 and $67.9 billion at December 31, 2024.

Interest rate hedging - Significant amounts of CO bonds have been designated under an ASC 815 fair value accounting hedge. From time to time, certain CO bonds were hedged by interest rate swaps in economic hedges; additionally, we have also hedged the anticipatory issuance of fixed-rate CO bonds in a cash flow hedge under ASC 815. Certain CO bonds were elected under the FVO. As a result of hedging elections under ASC 815 and the elections under the FVO, carrying values of CO bonds included valuation basis adjustments. For more information about valuation basis adjustments on CO bonds, see Table 5.1 CO Bonds by Type.

From time to time, we hedge CO discount notes under ASC 815 fair value accounting; additionally, certain CO discount notes are also hedged under ASC 815 cash flow accounting hedge. Certain CO discount notes were elected under the FVO. As a result of accounting elections, carrying values of CO discount notes may include valuation basis adjustments. For more information about valuation basis adjustments on CO discount notes, see Table 5.7 Discount Notes Outstanding. Also, see financial statements, Note 17. Derivatives and Hedging Activities.

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. Any rating actions on the U.S. Government would likely result in all individual FHLBanks' long-term deposit ratings and the FHLBank System long-term bond rating moving in lockstep with any U.S. sovereign rating action. In May 2025, Moody's downgraded the long-term credit ratings of the United States and in turn, the Bank rating was also downgraded from Aaa to Aa1 with outlooks changing from negative to stable. The downgrade by Moody's did not impact any current obligations of the Bank or its members, nor did it have an impact on the Bank's cost of funding, access to liquidity or the Bank's financial condition and results of operations.

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.

SOFR CO Bonds - The FHLBNY is an active participant in the issuance of SOFR-linked CO bonds. Outstanding balances were $29.3 billion at September 30, 2025 and $32.2 billion at December 31, 2024.

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


	September 30, 2025				December 31, 2024
			Percentage				Percentage
	Amount		of Total		Amount		of Total
Fixed-rate, non-callable	$	30,241,320	36.73	%	$	24,815,835	30.61	%
Fixed-rate, callable		21,066,800	25.59			21,611,130	26.66
Step Up, callable		1,627,000	1.98			2,357,000	2.91
Step Down, callable		52,000	0.06			52,000	0.06
Floating rate, callable		25,000	0.03			25,000	0.03
Single-index floating rate		29,321,000	35.61			32,209,000	39.73
Total par value		82,333,120	100.00	%		81,069,965	100.00	%


Bond premiums		47,159				61,456
Bond discounts		(19,062)				(21,289)
Hedge valuation basis adjustments ^(a)		(118,341)				(605,481)
Hedge basis adjustments on de-designated hedges ^(b)		94,589				100,019
FVO ^(c) - valuation adjustments and accrued interest		(11,434)				(52,535)
Total Consolidated obligation bonds	$	82,326,031			$	80,552,135

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, the remaining duration to maturity, and 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 a component of the entire fair value of FVO CO bonds.

(a)

Hedging valuation basis adjustments - The reported carrying values of hedged CO bonds are adjusted for changes in their fair values (fair value basis adjustments or fair value) that are attributable to changes in the benchmark risk being hedged. Our primary benchmarks are SOFR-OIS and Federal Funds-OIS. In the hedging relationships, a benchmark is elected on an instrument-by-instrument basis and becomes the discounting basis under ASC 815 for computing changes in fair values for hedged CO bonds. Table 5.2 CO Bonds Hedged under Qualifying Fair Value Hedges discloses notional amounts of CO bonds hedged. The application of ASC 815 accounting methodology resulted in the recognition of net cumulative hedge valuation basis gains of $0.1 billion at September 30, 2025 and $0.6 billion at December 31, 2024. 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.

(b)

Valuation basis of terminated hedges - Represents unamortized cumulative valuation basis of certain CO bonds that were no longer in fair value hedge relationships. When hedging relationships for the debt were de-designated, the net unrealized cumulative losses at the hedge termination dates were no longer adjusted for changes in the benchmark rate. Instead, the valuation basis is being amortized on a level yield method, and the net amortization is recorded as a reduction of Interest expense. If the CO bonds are held to maturity, the basis losses will be fully amortized as interest expense.

(c)

FVO valuation adjustments - Valuation basis adjustments and accrued interest payable are recorded to recognize changes in the entire fair value (the full fair value) of CO bonds elected under the FVO. Table 5.3 CO Bonds Elected under the Fair Value Option (FVO) discloses par amounts of CO bonds elected under the FVO.

We have elected the FVO on an instrument-by-instrument basis. For CO bonds elected under the FVO, it was not necessary to estimate changes attributable to instrument-specific credit risk, as we consider the credit worthiness of the FHLBanks to be secure and credit related adjustments unnecessary. More information about debt elected under the FVO is provided in financial statements, Note 18. Fair Values of Financial Instruments (See Fair Value Option Disclosures).

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	September 30, 2025		December 31, 2024
Qualifying hedges
Fixed-rate bullet bonds	$	22,124,580	$	15,580,510
Fixed-rate callable bonds		21,158,800		23,483,130
	$	43,283,380	$	39,063,640

CO bonds elected under the FVO - If at inception of a hedge we do not believe that a hedge would be highly effective in offsetting fair value changes between the derivative and the debt (hedged item), we may designate the debt under the FVO. We would record fair value changes of the FVO debt through earnings, and to the extent the debt is economically hedged, record changes in the fair values of the interest rate swap through earnings. The recorded balance sheet value of debt under the FVO would include the fair value basis adjustments, so that the debt's balance sheet carrying values would be its full fair value.

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	September 30, 2025		December 31, 2024
Bonds designated under FVO	$	1,056,635	$	1,756,650

CO bonds elected under the FVO were generally in economic hedges by the execution of interest rate swaps that converted the fixed-rate CO bonds to a variable-rate instrument. We elected to account for the CO bonds under the FVO when we were generally unable to assert with confidence that the short- and intermediate-term bonds, or callable bonds, with short lock-out periods to the exercise of call options, would remain effective hedges as required under hedge accounting rules. We may also elect the FVO to achieve asset liability objectives. Designation of CO bonds under the FVO is an asset-liability management decision. For more information, see financial statements, Fair Value Option Disclosures in Note 18. Fair Values of Financial Instruments.

Economic hedges of CO bonds - From time to time, we issue floating-rate debt indexed to a benchmark rate (Federal Funds-OIS or SOFR-OIS) and may then execute interest rate swaps that would synthetically convert the cash flows to the desired floating-rate funding indexed to another benchmark to meet our asset/liability funding strategies. The carrying value of the debt would not include fair value basis since the debt is recorded at amortized cost.

The following table provides information on CO bonds in an economic hedge relationship (in thousands):

Table 5.4 Economic Hedges of CO Bonds ^(a) (data in table excludes CO bonds elected under the FVO)

(a)	At September 30, 2025 and December 31, 2024, there were no basis swaps outstanding.

(b)	Fixed-rate debt - CO bonds that were previously hedged and have fallen out of effectiveness.

CO Bonds - Maturity or Next Call Date ^(a)

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


	September 30, 2025				December 31, 2024
			Percentage				Percentage
	Amount		of Total		Amount		of Total
Year of maturity or next call date
Due or callable in one year or less	$	59,952,425	72.82	%	$	53,491,890	65.98	%
Due or callable after one year through two years		15,096,545	18.33			16,630,140	20.51
Due or callable after two years through three years		3,002,390	3.65			4,866,470	6.00
Due or callable after three years through four years		2,148,865	2.61			3,113,065	3.84
Due or callable after four years through five years		427,495	0.52			1,099,550	1.36
Thereafter		1,705,400	2.07			1,868,850	2.31
Total par value	$	82,333,120	100.00	%	$	81,069,965	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


	September 30, 2025		December 31, 2024
Callable	$	22,770,800	$	24,045,130
Non-Callable	$	59,562,320	$	57,024,835

CO Discount Notes

The following table summarizes CO discount notes issued and outstanding (dollars in thousands):

Table 5.7 Discount Notes Outstanding


	September 30, 2025			December 31, 2024
Par value	$	61,480,277		$	68,467,860
Amortized cost	$	60,970,468		$	67,856,014
Hedge value basis adjustments ^(a)		(6,899)			2,987
Hedge basis adjustments on de-designated hedges ^(b)		(144)			(62)
FVO ^(c) - valuation adjustments and remaining accretion		9,553			-
Total Consolidated obligation discount notes	$	60,972,978		$	67,858,939
Weighted average interest rate		4.01	%		4.45	%

(a)

Hedge value basis adjustments - The reported carrying values of hedged CO discount notes are adjusted for changes in their fair values (fair value basis adjustments or fair value) that are attributable to changes in the benchmark risk being hedged. In the hedging relationships, a specific benchmark is elected on an instrument-by-instrument basis and becomes the discounting basis under ASC 815 for computing changes in fair values for the hedged CO discount notes. Notional amounts of $52.0 billion and $56.3 billion were hedged under ASC 815 qualifying fair value hedges at September 30, 2025 and December 31, 2024, respectively. The application of ASC 815 accounting methodology resulted in immaterial amounts of net cumulative hedge valuation adjustments as noted in the table above. Generally, hedge valuation basis gains and losses are unrealized and are expected to reverse to zero if the CO discount notes are held to maturity.

(b)

Hedge basis adjustments on de-designated hedges - Represents the unamortized balances of valuation basis of CO discount notes that were previously in a fair value hedging relationship. Generally, when a hedging relationship is de-designated, the valuation basis is no longer adjusted for changes in the valuation of the debt for changes in the benchmark rate; instead, the basis is amortized over the debt's remaining life, so that at maturity of the debt the unamortized basis is reversed to zero.

(c)

FVO valuation adjustments - Valuation basis adjustments are recorded to recognize changes in the entire or full fair values including unaccreted discounts on CO discount notes elected under the FVO. Changes in benchmark interest rates, notional amounts of CO discount notes elected under FVO and remaining terms to maturity are factors that impact hedge valuation adjustments. No CO discount notes were elected under the FVO at December 31, 2024.

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	September 30, 2025		December 31, 2024
Discount notes hedged under qualifying hedge	$	51,984,897	$	56,322,043

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	September 30, 2025		December 31, 2024
Discount notes designated as economic hedges ^(a)	$	1,738,272	$	1,175,790

(a)

Represents CO discount notes that were previously hedged and have fallen out of effectiveness.

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	September 30, 2025
Discount notes designated under FVO	$	562,507

No CO discount notes were elected under the FVO at December 31, 2024.

CO discount notes elected under the FVO were generally in economic hedges with the execution of interest rate swaps that converted the fixed-rate notes to variable-rate instruments. We elected to account for the CO discount notes under the FVO when we were generally unable to assert with confidence that the CO discount notes would remain effective hedges as required under hedge accounting rules. Management may also elect the FVO of certain other CO discount notes to achieve asset liability objectives. See Fair Value Option Disclosures in Note 18. Fair Values of Financial Instruments.

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	September 30, 2025		December 31, 2024
Discount notes hedged under qualifying hedge ^(a)	$	1,399,000	$	1,518,000

(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 7 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.

Accrued interest payable

Accrued interest payable - Amounts outstanding were $626.2 million at September 30, 2025 and $604.3 million at December 31, 2024. Accrued interest payable was comprised primarily of interest due and unpaid on CO bonds, which are generally payable on a semi-annual basis. Fluctuations in unpaid interest balances on bonds are due to the timing of semi-annual coupon accruals and payments at the balance sheet dates.

Other Liabilities

Other liabilities - Amounts outstanding were $141.7 million at September 30, 2025 and $133.5 million at December 31, 2024. Other liabilities comprised of unfunded pension liabilities, Federal Reserve pass-through reserves held on behalf of members, and miscellaneous payables.

Stockholders' Capital

The following table summarizes the components of Stockholders' capital (in thousands):

Table 6.1 Stockholders' Capital


	September 30, 2025		December 31, 2024
Capital Stock ^(a)	$	5,582,031	$	6,014,414
Unrestricted retained earnings ^(b)		1,292,081		1,286,317
Restricted retained earnings ^(c)		1,302,469		1,208,776
Accumulated Other Comprehensive Income (Loss)		(47,811)		(99,978)
Total Capital	$	8,128,770	$	8,409,529

(a)

Stockholders' Capital - Capital stock decreased in line with the decrease 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 September 30, 2025 has grown to $1.3 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 September 30, 2025 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 $1.3 billion at September 30, 2025. Also see Note 14. Capital Stock, Mandatorily Redeemable Capital Stock and Restricted Retained Earnings.

The following table summarizes the components of AOCI (in thousands):

Table 6.2 Accumulated Other Comprehensive Income (Loss) (AOCI)


	September 30, 2025		December 31, 2024
Accumulated other comprehensive income (loss)
Non-credit portion on held-to-maturity securities, net ^(a)	$	-	$	(569)
Net market value unrealized gains (losses) on available-for-sale securities ^(b)		(422,005)		(800,336)
Net Fair value hedging gains (losses) on available-for-sale securities ^(b)		342,363		634,699
Net Cash flow hedging gains (losses) ^(c)		34,388		68,579
Employee supplemental retirement plans ^(d)		(2,557)		(2,351)
Total Accumulated other comprehensive income (loss)	$	(47,811)	$	(99,978)

(a)

Represents cumulative unamortized non-credit losses. In the third quarter of 2025, the Bank sold all remaining securities in our PLMBS portfolio.

(b)

Net market value unrealized losses of $422.0 million and $800.3 million at September 30, 2025 and December 31, 2024, represented market-based unrealized gains/losses of securities designated as AFS. Net unrealized gains of $342.4 million and $634.7 million included immaterial balances of unamortized basis as a result of de-designation hedges at September 30, 2025 and December 31, 2024, represented changes in the benchmark rate (the risk being hedged) calculated by the Bank's internal models for AFS designated in ASC 815 hedging relationships. Hedging gains and losses are recorded through earnings with an offset to the carrying values of hedged AFS securities. Hedging basis will reverse to zero as hedges mature.

(c)

Cash flow hedging gains (losses) recorded in AOCI were primarily the result of cash flow hedges of sequential issuance of discount notes; also included immaterial valuation basis of cash flow hedges of anticipatory issuance of CO bonds. See Table 6.3 AOCI Roll forward due to ASC 815 Hedging Programs.

(d)

Employee supplemental plans - Balances represent actuarially determined supplemental pension and postretirement health benefit liabilities that were not recognized through earnings.

The following table presents amounts recognized in and reclassified out of AOCI due to cash flow and fair value hedges (in thousands):

Table 6.3 AOCI Roll forward due to ASC 815 Hedging Programs


	September 30, 2025
	Cash Flow Hedges				Fair Value Hedges
	Rollover Hedge		Anticipatory
	Program		Hedge Program		AFS Securities
Beginning balance	$	68,440	$	139	$	634,699
Changes in fair values ^(a)		(36,201)		-		(292,336)
Amount reclassified		-		193		-
Fair Value - closed contract		-		1,817		-
Ending balance	$	32,239	$	2,149	$	342,363

Notional amount of swaps outstanding	$	1,399,000	$	-	$	7,667,000


	December 31, 2024
	Cash Flow Hedges				Fair Value Hedges
	Rollover Hedge		Anticipatory
	Program		Hedge Program		AFS Securities
Beginning balance	$	76,473	$	(1,272)	$	505,344
Changes in fair values ^(a)		(8,033)		-		129,355
Amount reclassified		-		1,170		-
Fair Value - closed contract		-		241		-
Ending balance	$	68,440	$	139	$	634,699

Notional amount of swaps outstanding	$	1,518,000	$	-	$	6,980,000


	September 30, 2024
	Cash Flow Hedges				Fair Value Hedges
	Rollover Hedge		Anticipatory
	Program		Hedge Program		AFS Securities
Beginning balance	$	76,473	$	(1,272)	$	505,344
Changes in fair values ^(a)		(30,102)		-		363,951
Amount reclassified		-		862		-
Fair Value - closed contract		-		211		-
Ending balance	$	46,371	$	(199)	$	869,295

Notional amount of swaps outstanding	$	1,608,000	$	-	$	6,554,000

(a)

Represents fair value changes of open swap contracts. For more information, see Financial Statements, Note 17. Derivatives and Hedging Activities.

Dividends - By Finance Agency regulation, dividends may be paid out of current earnings or if certain conditions are met, may be paid out of previous retained earnings. We may be restricted from paying dividends if we do not comply with any of the Finance Agency's minimum capital requirements or if payment would cause us to fail to meet any of the minimum capital requirements, including our Retained earnings target as established by the Board of Directors of the FHLBNY. In addition, we may not pay dividends if any principal or interest due on any Consolidated obligations has not been paid in full, or if we fail to satisfy certain liquidity requirements under applicable Finance Agency regulations. None of these restrictions applied for any period presented.

The following table summarizes dividends paid and payout ratios:

Table 6.4 Dividends Paid and Payout Ratios


	Nine months ended
	September 30, 2025			September 30, 2024
Cash dividends paid per share	$	6.07		$	7.18
Dividends paid ^(a)(c)	$	369,004		$	435,954
Pay-out ratio ^(b)		78.77	%		74.50	%

(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

Interest rate swaps, swaptions, cap and floor agreements (collectively, derivatives) enable us to manage our exposure to changes in interest rates by adjusting the effective maturity, repricing frequency, or option characteristics of financial instruments. To a limited extent, we also use interest rate swaps to hedge changes in interest rates prior to debt issuance and essentially lock in funding costs. Finance Agency regulations prohibit the speculative use of derivatives. For additional information about the methodologies adopted for the fair value measurement of derivatives, see financial statements, Note 18. Fair Values of Financial Instruments.

Derivatives Counterparty Credit Ratings

For information, and an analysis of our exposure due to non-performance of swap counterparties, see Table "Offsetting of Derivative Assets and Derivative Liabilities - Net Presentation" in Note 17. Derivatives and Hedging Activities to financial statements. For information about the methodologies adopted for the fair value measurement of derivatives, see financial statements, Note 18. Fair Values of Financial Instruments.

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


	September 30, 2025
			Net Derivatives		Cash Collateral				Non-Cash Collateral		Net Credit
			Fair Value		Pledged To (From)		Balance Sheet Net		Pledged To (From)		Exposure to
Credit Rating	Notional Amount		Before Collateral		Counterparties ^(a)		Credit Exposure		Counterparties ^(b)		Counterparties
Non-member counterparties
Asset positions with credit exposure
Uncleared derivatives
Double A asset ^(c)	$	221,000	$	619	$	(550)	$	69	$	-	$	69
Single A asset ^(c)		9,050,500		60,751		7,500		68,251		(57,722)		10,529
Cleared derivatives assets ^(d)		414,657		109		-		109		35,060		35,169
		9,686,157		61,479		6,950		68,429		(22,662)		45,767
Liability positions with credit exposure
Uncleared derivatives
Single A liability ^(c)		23,264,800		(117,256)		117,850		594		-		594
Triple B liability ^(c)		1,932,000		(17,580)		17,650		70		-		70
Cleared derivatives liability ^(d)		133,455,129		-		-		-		803,205		803,205
		158,651,929		(134,836)		135,500		664		803,205		803,869
Total derivative positions with non-member counterparties to which the Bank had credit exposure		168,338,086		(73,357)		142,450		69,093		780,543		849,636
Delivery commitments
Derivative position with delivery commitments		44,488		76		-		76		(76)		-
Total derivative position with members		44,488		76		-		76		(76)		-
Total	$	168,382,574	$	(73,281)	$	142,450	$	69,169	$	780,467	$	849,636
Derivative positions without credit exposure		17,779,000
Total notional	$	186,161,574


	December 31, 2024
			Net Derivatives		Cash Collateral				Non-Cash Collateral		Net Credit
			Fair Value		Pledged To (From)		Balance Sheet Net		Pledged To (From)		Exposure to
Credit Rating	Notional Amount		Before Collateral		Counterparties ^(a)		Credit Exposure		Counterparties ^(b)		Counterparties
Non-member counterparties
Asset positions with credit exposure
Uncleared derivatives
Double A asset ^(c)	$	252,000	$	1,485	$	(1,450)	$	35	$	-	$	35
Single A asset ^(c)		3,461,437		3,941		75,200		79,141		(69,065)		10,076
Cleared derivatives assets ^(d)		141,305,161		14,362		-		14,362		771,684		786,046
		145,018,598		19,788		73,750		93,538		702,619		796,157
Liability positions with credit exposure
Uncleared derivatives
Single A liability ^(c)		6,171,500		(80,993)		81,990		997		-		997
Triple B liability ^(c)		4,115,000		(32,571)		35,380		2,809		-		2,809
Cleared derivatives liability ^(d)		811,657		-		-		-		31,285		31,285
		11,098,157		(113,564)		117,370		3,806		31,285		35,091
Total derivative positions with non-member counterparties to which the Bank had credit exposure		156,116,755		(93,776)		191,120		97,344		733,904		831,248
Delivery commitments
Derivative position with delivery commitments		28,672		-		-		-		-		-
Total derivative position with members		28,672		-		-		-		-		-
Total	$	156,145,427	$	(93,776)	$	191,120	$	97,344	$	733,904	$	831,248
Derivative positions without credit exposure		25,861,630
Total notional	$	182,007,057

(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 $838.3 million and $803.0 million in marketable securities as collateral at September 30, 2025 and December 31, 2024, respectively. At September 30, 2025 and December 31, 2024 we did not pledge cash as collateral.

Liquidity, Cash Flows, Short-Term Borrowings and Short-Term Debt

Our primary source of liquidity is the issuance of Consolidated obligation bonds and discount notes. To refinance maturing Consolidated obligations, we rely on the willingness of our investors to purchase new issuances. We have access to the discount note market, and the efficiency of issuing discount notes is an important source of liquidity, since discount notes can be issued any time and in a variety of amounts and maturities. Member deposits and capital stock purchased by members are also sources of funds. Short-term unsecured borrowings from other FHLBanks and in the federal funds market, as well as secured borrowings in the repo market provide additional sources of liquidity. In addition, the Secretary of the Treasury is authorized to purchase up to $4.0 billion of Consolidated obligations from the FHLBanks. 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


	Average Deposit		Average Actual
For the Quarters Ended	Reserve Required		Deposit Liquidity		Excess
September 30, 2025	$	2,819	$	98,841	$	96,022
June 30, 2025		2,661		105,318		102,657
March 31, 2025		2,638		100,058		97,420
December 31, 2024		2,495		101,743		99,248

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


	Average Balance Sheet		Average Actual
For the Quarters Ended	Liquidity Requirement		Operational Liquidity		Excess
September 30, 2025	$	16,396	$	47,214	$	30,818
June 30, 2025		15,776		49,044		33,268
March 31, 2025		14,590		50,205		35,615
December 31, 2024		13,283		46,165		32,882

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


	Average Five Day		Average Actual
For the Quarters Ended	Requirement		Contingency Liquidity		Excess
September 30, 2025	$	3,634	$	44,259	$	40,625
June 30, 2025		3,503		46,748		43,245
March 31, 2025		3,367		46,088		42,721
December 31, 2024		3,107		41,186		38,079

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. For three days during March 2023, we were in the lower part of the Range, temporarily below the FHFA's base case guidance, in order to meet significant member demand for advances resulting from the banking crisis, as permitted by the Advisory Bulletin. 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.

Cash flows

Cash and due from Banks was $30.2 million at September 30, 2025 and $44.2 million at September 30, 2024. Cash and cash equivalents exclude short-term interest-bearing deposits, federal funds sold, and securities purchased under agreements to resell. The following discussion highlights the major activities and transactions that affected our cash flows.

Cash flows provided by/(used in) operating activities - Operating assets and liabilities support our lending activities to members, and can vary significantly in the normal course of business due to the amount and timing of cash flows, which are affected by member-driven borrowing, our investment strategies, and market conditions. Management believes cash flows from operations, available cash balances and our ability to generate cash through the issuance of Consolidated obligation bonds and discount notes are sufficient to fund our operating liquidity needs.

Operating activities resulted in $0.8 billion in net cash outflows in the nine months ended September 30, 2025, compared to net cash inflows of $0.4 billion in the same period in the prior year. Period changes in cash flows provided by or used in operating activities were largely driven by: (a) Net income was $468.5 million in the nine months ended September 30, 2025 and $585.2 million in the same period in the prior year; (b) Net cash outflows from Derivatives and hedging activities were $601.4 million in the nine months ended September 30, 2025, compared to net cash outflows of $513.8 million in the same period in the prior year; and (c) Negative adjustments to operating cash flows of $113.3 million to recognize realized and unrealized gains on securities at September 30, 2025, compared to negative adjustments of $100.2 million to recognize realized and unrealized gains on securities in the same period in the prior year.

Cash flows provided by/(used in) investing activities -Investing activities resulted in $6.2 billion in net cash inflows in the nine months ended September 30, 2025 compared to $4.3 billion in net cash inflows in the same period in the prior year. In the nine months ended September 30, 2025, we acquired $3.4 billion and sold $3.5 billion of Treasuries in Trading securities. We acquired $1.5 billion and sold $0.2 billion of Treasuries in Trading securities in the same period in the prior year. We did not make any repayments from Treasury securities in the nine months ended September 30, 2025, and September 30, 2024. Net cash outflows from Securities purchased under agreements to resell were $2.3 billion in the nine months ended September 30, 2025, compared to net cash inflows of $2.7 billion in the same period in the prior year.

Cash flows provided by/(used in) financing activities - Our primary source of funding is the issuance of Consolidated obligation debt. Issuance of capital stock is another source. Financing activities reported net cash outflows of $5.3 billion in the nine months ended September 30, 2025, compared to net cash outflows of $4.7 billion in the same period in the prior year.

For more information, see Statements of Cash Flows in the financial statements.

Short-term Borrowings and Short-term Debt

Our primary source of funds is the issuance of FHLBank debt. Consolidated obligation discount notes are issued with maturities up to one year and provide us with short-term funds. Discount notes are principally used in funding short-term advances, some long-term advances, as well as money market instruments. We also issue short-term Consolidated obligation bonds as part of our asset-liability management strategy. We may also borrow from another FHLBank, generally for a period of one day. Such borrowings have been historically insignificant.

Off-Balance Sheet Arrangements, Guarantees, and Other Commitments - In accordance with regulations governing the operations of the FHLBanks, each FHLBank, including the FHLBNY, is jointly and severally liable for the FHLBank System's Consolidated obligations issued under sections 11(a) and 11(c) of the FHLBank Act. The joint and several liability regulations authorizes the Finance Agency to require any FHLBank to repay all or a portion of the principal or interest on Consolidated obligations for which another FHLBank is the primary obligor.

In addition, in the ordinary course of business, the FHLBNY engages in financial transactions that, in accordance with U.S. GAAP, are not recorded on the FHLBNY's balance sheet or may be recorded on the FHLBNY's balance sheet in amounts that are different from the full contract or notional amount of the transactions. For example, the Bank routinely enters into commitments to purchase mortgage loans from PFIs, and issues standby letters of credit.

These commitments may represent future cash requirements of the Bank, although the standby letters of credit usually expire without being drawn upon. For more information about contractual obligations and commitments, see financial statements, Note 19. Commitments and Contingencies.

Results of Operations

The following section provides a comparative discussion of the FHLBNY's results of operations for the nine months ended September 30, 2025 and 2024. 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.

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 September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Total interest income	$	1,850,248	$	2,316,637	$	5,567,568	$	6,916,029
Total interest expense		1,638,275		2,079,441		4,926,065		6,166,119
Net interest income before provision for credit losses		211,973		237,196		641,503		749,910
Provision (Reversal) for credit losses		(288)		88		(148)		(673)
Net interest income after provision for credit losses		212,261		237,108		641,651		750,583
Total other income (loss)		31,948		35,117		72,030		88,229
Total other expenses		66,701		68,471		193,123		188,541
Income before assessments		177,508		203,754		520,558		650,271
Affordable Housing Program Assessments		17,767		20,391		52,097		65,074
Net income	$	159,741	$	183,363	$	468,461	$	585,197

Net Income - 2025 Third Quarter Compared to 2024 Third 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 2025 third quarter was $159.7 million, a decrease of $23.7 million or 12.9%, compared to the same period in the prior year. Summarized below are the primary components of our net income:

Net interest income - The 2025 third quarter net interest income was $212.0 million, a decrease of $25.2 million, or 10.6% compared to the same period in the prior year. Net interest spread was 30 basis points for 2025 third quarter compared to 27 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.

Provision (Reversal) for credit losses for the third quarter of 2025 was a reversal of $0.3 million compared to a provision of $0.1 million for the same period in the prior year.

Other income (loss) - Other income (loss) reported a smaller gain of $31.9 million in the third quarter of 2025 compared to a gain of $35.1 million in the same period in the prior year.

●

Service fees and other were $5.3 million in the 2025 third quarter compared to $5.7 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 valuesreported net valuation losses of $12.6 million in the 2025 third quarter compared to net losses of $39.0 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 activitiesreported net gains of $10.4 million in Other income in the 2025 third quarter, compared to net losses of $89.1 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 gains of $23.6 million in the 2025 third quarter compared to net fair value gains of $151.7 million in the same period in the prior year.

●

Equity Investmentsheld to finance payments to retirees in a non-qualified pension plan, reported net fair value gains of $5.3 million in the 2025 third quarter compared to net gains of $5.7 million in the same period in the prior year.

Other expenses were $66.7 million in the third quarter of 2025 compared to $68.5 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 $22.9 million in the third quarter of 2025, down from $23.7 million in the same period in the prior year.

●

Compensation and benefits expenses were $29.4 million in the third quarter of 2025 compared to $28.7 million in the same period in the prior year.

●

Voluntary contributions were $6.3 million in the third quarter of 2025 compared to $8.3 million in the same period in the prior year for various housing programs, grants, charitable contributions. These voluntary contributions are in excess of the Bank's AHP statutory requirement.

●

The expenses allocated for our share of the costs to operate the Office of Finance and the Federal Housing Finance Agency were $6.1 million in the third quarter of 2025 compared to $5.5 million in the same period in the prior year.

●

Other expenses were $2.0 million in the third quarter of 2025, slightly down from $2.3 million in the same period in the prior year.

Affordable Housing Program Assessments (AHP) allocated from net income were $17.8 million for the third quarter of the current year, compared to $20.4 million for the same period in the prior year. Assessments are calculated as a percentage of net income, and changes in allocations were in tandem with changes in net income.

Net Income - Year-to-Date Period Ended September 30, 2025 Compared to Year-to-Date Period Ended September 30, 2024

Net income in the year-to-date period in the current year was $468.5 million, a decrease of $116.7 million, or 19.9% compared to the same period in the prior year.

Net interest income in the year-to-date period in the current year was $641.5 million, a decrease of $108.4 million, or 14.5%. Net interest spread was 30 basis points in the current year-to-date period and 30 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) in the year-to-date period ended September 30, was a gain of $72.0 million in the 2025 period compared to a gain of $88.2 million in the same period in the prior year.

Other expenses were $193.1 million in the year-to-date period in the current year, compared to $188.5 million in the same period in the prior year. Operating expenses were $66.0 million in the year-to-date period in the current year and $69.7 million in the prior year period. Compensation and benefits were $89.9 million in the year-to-date period in the current year, up from $84.1 million in the prior year period. Voluntary contributions were $13.6 million in the year-to-date period in the current year, up from $12.2 million in the prior year period. The expenses allocated for our share of the costs to operate the Office of Finance and the Federal Housing Finance Agency were $17.5 million in the year-to-date period in the current year, compared to $16.1 million in the prior year period. Other expenses were $6.1 million in the year-to-date period in the current year and $6.4 million in the prior year period. Other expenses included non-service elements of Net periodic pension benefit costs, and derivative clearing fees.

AHP assessments allocated from Net income were $52.1 million in the year-to-date period in the current year, compared to $65.1 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.

Changes in net interest income are typically driven by changes in the volume of earning assets, as measured by average balances of earning assets, and the impact of market interest rates on earnings assets and funding costs. Interest income and expense accruals on interest rate swaps that qualified under the ASC 815 hedge accounting rules may impact year-over-year changes. Shareholders' capital stock and retained earnings are also factors that impact net interest income as they provide interest free funding. Earnings on capital typically move directly with changes in short-term market interest rates. In a period when members prepay advances, the prepayment fees, which we receive may cause fluctuations in net interest income. For more information about factors that impact Interest income and Interest expense, see Table 9.3 Net Interest Adjustments from Qualifying Hedge Interest Rate Swaps and discussions thereto. Also, see Table 9.4 Spread and Yield Analysis, and Table 9.5 Rate and Volume Analysis.

The following table summarizes net interest income (dollars in thousands):

Table 9.2 Net Interest Income


	Three months ended September 30,						Nine months ended September 30,
					Percentage						Percentage
	2025		2024		Change		2025		2024		Change
Total interest income ^(a)	$	1,850,248	$	2,316,637	(20.13)	%	$	5,567,568	$	6,916,029	(19.50)	%
Total interest expense ^(a)		1,638,275		2,079,441	(21.22)			4,926,065		6,166,119	(20.11)
Net interest income before provision for credit losses	$	211,973	$	237,196	(10.63)	%	$	641,503	$	749,910	(14.46)	%

(a)

Total Interest Income and Total Interest Expense - See Tables 9.6 and 9.8 and accompanying discussions

In the third quarter of the current year, net interest income, before loan loss provisions, was $212.0 million, a decrease of $25.2 million, or 10.6% from third quarter of 2024. The decrease in net interest income was driven by a decrease in market interest rates as reflected in a decline of 90 basis points on average yield on earning assets, and a decrease of $10.3 billion in average advances balances from the prior year period. 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. Average interest earning assets decreased to $161.5 billion for the third quarter of 2025 compared to $169.0 billion for the prior year period. Net interest spread increased to 30 basis points in the third quarter of 2025 compared to 27 basis points in the same period in 2024. Net interest margin, a measure of margin efficiency, which is calculated as net interest income divided by average earning assets, was 52 basis points in the third quarter of 2025, compared to 56 basis points in the same period in the prior year. Prepayment fees of $0.8 million were recorded in net interest income in the third quarter of 2025 and $1.1 million 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 $8.4 billion in the third quarter of 2025, a decrease from $8.7 billion in the third quarter of 2024.

In the 2025 year-to-date period, Net interest margin was 52 basis points compared to 59 basis points from the same period in the prior year. Net interest spread was 30 basis points in the 2025 year-to-date period and in the same year-to-date period in the prior year.

Swap interest settlement designated in ASC 815 hedging of assets and liabilities recorded net expense of $8.1 million in the third quarter of 2025 compared to net income of $0.4 million in the third quarter of 2024. In the year-to-date period ended September 30, 2025, we recorded net income of $27.0 million to interest margin, compared to net income of $4.0 million in the same period in the prior year. 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 September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Interest income	$	1,725,990	$	2,052,960	$	5,192,687	$	6,073,682
Fair value hedging effects		(138)		(3,481)		(2,779)		66
Amortization of basis adjustment		39		58		81		113
Interest rate swap accruals		131,820		282,184		408,289		908,475
Price alignment amount ^(a)		(7,463)		(15,084)		(30,710)		(66,307)
Reported interest income		1,850,248		2,316,637		5,567,568		6,916,029

Interest expense		1,507,729		1,811,632		4,577,821		5,328,957
Fair value hedging effects		(1,138)		1,607		(528)		926
Amortization of basis adjustment		(809)		(483)		(1,772)		(1,888)
Interest rate swap accruals		131,846		266,782		348,969		841,295
Price alignment amount ^(b)		647		(97)		1,575		(3,171)
Reported interest expense		1,638,275		2,079,441		4,926,065		6,166,119
Net interest income	$	211,973	$	237,196	$	641,503	$	749,910
Net interest adjustment - interest rate swaps	$	(6,288)	$	(4,132)	$	26,637	$	5,185

(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 $3.2 million and $8.8 million expense in the third quarter of 2025 and 2024. In the year-to-date period ended September 30, 2025 and 2024, Interest income for advances hedged were $14.9 million and $42.4 million expense. Price alignment amount in Interest income for AFS debt securities hedged were $4.3 million and $6.3 million expense in the third quarter of 2025 and 2024. In the year-to-date period ended September 30, 2025 and 2024, Interest income for AFS debt securities hedged were $15.8 million and $23.9 million expense.

(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 and $0.6 million expense in the third quarter of 2025 and 2024. In the year-to-date period ended September 30, 2025 and 2024, Interest expense for consolidated obligation bonds hedged were $1.9 million expense and $1.2 million income. Price alignment amount in Interest expense for consolidated obligation discount notes hedged were $0.2 million and $0.7 million income in the third quarter of 2025 and 2024. In the year-to-date period ended September 30, 2025 and 2024, Interest expense for consolidated obligation discount notes hedged were $0.3 million and $2.0 million income.

Spread and Yield Analysis - 2025 periods compared to 2024

Table 9.4 Spread and Yield Analysis


	Three months ended September 30,
	2025						2024
			Interest						Interest
	Average		Income/				Average		Income/
(Dollars in thousands)	Balance		Expense		Yield/Rate ^(a)		Balance		Expense		Yield/Rate ^(a)
Earning Assets:
Advances	$	100,672,414	$	1,200,721	4.73	%	$	111,039,614	$	1,605,458	5.75	%
Interest bearing deposits and others		3,249,476		36,003	4.40			3,391,446		46,120	5.41
Securities purchased under agreements to resell		7,458,587		81,743	4.35			5,114,565		68,593	5.34
Federal funds sold		18,136,848		199,571	4.37			19,330,652		260,738	5.37
Investments
Trading securities		7,107,332		55,943	3.12			6,571,267		51,935	3.14
Mortgage-backed securities
Fixed		15,124,441		158,209	4.15			14,834,827		164,018	4.40
Floating		5,386,634		69,710	5.13			5,039,305		77,517	6.12
Available-for-sale Treasuries		224,274		2,185	3.87			-		-	NM
State and local housing finance agency obligations		1,599,456		20,751	5.15			1,388,741		21,454	6.15
Mortgage loans held-for-portfolio		2,505,762		25,322	4.01			2,273,254		20,804	3.64
Loans to other FHLBanks		8,152		90	4.38			-		-	NM
Total interest-earning assets	$	161,473,376	$	1,850,248	4.55	%	$	168,983,671	$	2,316,637	5.45	%

Funded By:
Consolidated obligation bonds
Fixed	$	56,889,846	$	591,019	4.12	%	$	55,500,663	$	681,441	4.88	%
Floating		31,098,072		350,708	4.47			41,804,446		572,257	5.45
Consolidated obligation discount notes		61,900,350		665,694	4.27			60,186,382		795,458	5.26
Interest-bearing deposits and other borrowings		2,893,781		30,686	4.21			2,324,083		30,136	5.16
Mandatorily redeemable capital stock		9,159		168	7.26			6,230		149	9.50

Total interest-bearing liabilities		152,791,208		1,638,275	4.25	%		159,821,804		2,079,441	5.18	%

Other non-interest-bearing funds		316,194		-				442,748		-
Capital		8,365,974		-				8,719,119		-

Total Funding	$	161,473,376	$	1,638,275			$	168,983,671	$	2,079,441

Net Interest Income/Spread			$	211,973	0.30	%			$	237,196	0.27	%

Net Interest Margin
(Net interest income/Earning Assets)					0.52	%					0.56	%


	Nine months ended September 30,
	2025						2024
			Interest						Interest
	Average		Income/				Average		Income/
(Dollars in thousands)	Balance		Expense		Yield/Rate ^(a)		Balance		Expense		Yield/Rate ^(a)
Earning Assets:
Advances	$	103,447,536	$	3,667,872	4.74	%	$	110,989,682	$	4,804,490	5.78	%
Interest bearing deposits and others		3,263,161		107,880	4.42			3,494,274		142,938	5.46
Securities purchased under agreements to resell		5,729,081		186,842	4.36			5,117,121		206,021	5.38
Federal funds sold		19,440,612		637,534	4.38			19,417,631		784,978	5.40
Investments
Trading securities		7,574,744		180,909	3.19			6,013,618		137,979	3.06
Mortgage-backed securities
Fixed		15,040,579		465,961	4.14			14,677,096		479,704	4.37
Floating		4,888,639		188,005	5.14			5,161,196		236,134	6.11
Available-for-sale Treasuries		75,579		2,185	3.87			-		-	NM
State and local housing finance agency obligations		1,510,561		58,149	5.15			1,391,777		64,212	6.16
Mortgage loans held-for-portfolio		2,429,363		71,864	3.96			2,223,779		59,573	3.58
Loans to other FHLBanks		11,172		367	4.39			-		-	NM
Total interest-earning assets	$	163,411,027	$	5,567,568	4.56	%	$	168,486,174	$	6,916,029	5.48	%

Funded By:
Consolidated obligation bonds
Fixed	$	56,130,294	$	1,722,336	4.10	%	$	60,771,984	$	2,238,159	4.92
Floating		33,920,703		1,132,996	4.47			36,614,127		1,499,814	5.47
Consolidated obligation discount notes		61,723,163		1,984,161	4.30			59,175,097		2,329,973	5.26
Interest-bearing deposits and other borrowings		2,739,514		86,158	4.20			2,503,718		97,708	5.21
Mandatorily redeemable capital stock		7,198		414	7.68			6,428		465	9.65

Total interest-bearing liabilities		154,520,872		4,926,065	4.26	%		159,071,354		6,166,119	5.18	%

Other non-interest-bearing funds		432,193		-				763,842		-
Capital		8,457,962		-				8,650,978		-

Total Funding	$	163,411,027	$	4,926,065			$	168,486,174	$	6,166,119

Net Interest Income/Spread			$	641,503	0.30	%			$	749,910	0.30	%

Net Interest Margin
(Net interest income/Earning Assets)					0.52	%					0.59	%

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 - 2025 periods compared to 2024

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
	September 30, 2025 vs. September 30, 2024
	Increase (Decrease)
	Volume		Rate		Total
Interest Income
Advances	$	(140,766)	$	(263,971)	$	(404,737)
Interest bearing deposits and others		(1,865)		(8,252)		(10,117)
Securities purchased under agreements to resell		27,328		(14,178)		13,150
Federal funds sold		(15,358)		(45,809)		(61,167)
Investments
Trading securities		4,220		(212)		4,008
Mortgage-backed securities
Fixed		3,156		(8,965)		(5,809)
Floating		5,086		(12,893)		(7,807)
Available-for-sale Treasuries		2,185		-		2,185
State and local housing finance agency obligations		3,002		(3,705)		(703)
Mortgage loans held-for-portfolio		2,237		2,281		4,518
Loans to other FHLBanks		90		-		90

Total interest income		(110,685)		(355,704)		(466,389)

Interest Expense
Consolidated obligation bonds
Fixed		16,689		(107,111)		(90,422)
Floating		(131,263)		(90,286)		(221,549)
Consolidated obligation discount notes		22,093		(151,857)		(129,764)
Deposits and borrowings		6,615		(6,065)		550
Mandatorily redeemable capital stock		59		(40)		19

Total interest expense		(85,807)		(355,359)		(441,166)

Changes in Net Interest Income	$	(24,878)	$	(345)	$	(25,223)


	For the nine months ended
	September 30, 2025 vs. September 30, 2024
	Increase (Decrease)
	Volume		Rate		Total
Interest Income
Advances	$	(310,354)	$	(826,264)	$	(1,136,618)
Interest bearing deposits and others		(8,989)		(26,069)		(35,058)
Securities purchased under agreements to resell		22,830		(42,009)		(19,179)
Federal funds sold		928		(148,372)		(147,444)
Investments
Trading securities		37,085		5,845		42,930
Mortgage-backed securities
Fixed		11,681		(25,424)		(13,743)
Floating		(11,975)		(36,154)		(48,129)
Available-for-sale Treasuries		2,185		-		2,185
State and local housing finance agency obligations		5,172		(11,235)		(6,063)
Mortgage loans held-for-portfolio		5,777		6,514		12,291
Loans to other FHLBanks		367		-		367

Total interest income		(245,293)		(1,103,168)		(1,348,461)

Interest Expense
Consolidated obligation bonds
Fixed		(161,991)		(353,832)		(515,823)
Floating		(104,526)		(262,292)		(366,818)
Consolidated obligation discount notes		96,829		(442,641)		(345,812)
Deposits and borrowings		8,631		(20,181)		(11,550)
Mandatorily redeemable capital stock		51		(102)		(51)

Total interest expense		(161,006)		(1,079,048)		(1,240,054)
Changes in Net Interest Income	$	(84,287)	$	(24,120)	$	(108,407)

Interest Income

Interest income from advances is our principal source of interest income. We also earn interest income from an asset mix of long-term assets, such as fixed-rate advances, long-term fixed- and floating-rate investments, long-term 15-year and 30-year mortgage loans, and revenues generated from portfolios of overnight and short-term assets and U.S. Treasury securities held for liquidity.

Reported interest income also includes prepayments fees, primarily fees recorded when advances are prepaid ahead of their contractual maturities.

The principal categories of Interest Income are summarized below (dollars in thousands):

Table 9.6 Interest Income - Principal Sources


	Three months ended September 30,						Nine months ended September 30,
					Percentage						Percentage
	2025		2024		Change		2025		2024		Change
Interest Income
Advances	$	1,200,721	$	1,605,458	(25.21)	%	$	3,667,872	$	4,804,490	(23.66)	%
Interest-bearing deposits		36,003		46,120	(21.94)			107,880		142,938	(24.53)
Securities purchased under agreements to resell		81,743		68,593	19.17			186,842		206,021	(9.31)
Federal funds sold		199,571		260,738	(23.46)			637,534		784,978	(18.78)
Trading securities		55,943		51,935	7.72			180,909		137,979	31.11
Mortgage-backed securities
Fixed		158,209		164,018	(3.54)			465,961		479,704	(2.86)
Floating		69,710		77,517	(10.07)			188,005		236,134	(20.38)
Available-for-sale Treasuries		2,185		-	NM			2,185		-	NM
State and local housing finance agency obligations		20,751		21,454	(3.28)			58,149		64,212	(9.44)
Mortgage loans held-for-portfolio		25,322		20,804	21.72			71,864		59,573	20.63
Loans to other FHLBanks		90		-	NM			367		-	NM

Total interest income	$	1,850,248	$	2,316,637	(20.13)	%	$	5,567,568	$	6,916,029	(19.50)	%

NM - Not meaningful.

Interest Income

Interest income in 2025 third quarter was $1.9 billion, a decrease of $0.4 billion, or 20.1% compared to the same period in 2024. To provide context, interest expense decreased by 21.2% compared to the same period in the prior year.

For the 2025 third quarter compared to 2024 third quarter, the decrease in interest revenue was due to a volume-related decrease of $110.7 million and a rate-related decrease of $355.7 million.

Aggregate yield on earning assets in the third quarter of 2025 was 455 basis points, compared to 545 basis points in the third quarter of 2024.

Interest income in the 2025 year-to-date period was $5.6 billion, a decrease of $1.3 billion, or 19.5% compared to the same period in the prior year. To provide context, interest expense decreased by 20.1% compared to the year-to-date period in the prior year.

Aggregate yield earned on earning assets in 2025 year-to-date period was 456 basis points, compared to 548 basis points in the same period in the prior year.

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.

Advance- Interest income from advances decreased by $0.4 billion or 25.2% in the 2025 third quarter, compared to the same period in the prior year. Advances average balances were $100.7 billion in 2025 third quarter compared to $111.0 billion in the 2024 third quarter.

As compared to the same period in the prior year, lower average advances balances in the 2025 third quarter resulted in an unfavorable impact of $140.8 million on interest income from advances and lower market rates resulted in an unfavorable impact of $264.0 million. 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 473 basis points in the 2025 third quarter, down from 575 basis points in the same period in the prior year. Prepayment fees recorded in Interest income from advances were $0.8 million in the 2025 third quarter and $1.1 million in the same period in the prior year.

On a year-to-date basis, interest income from advances decreased by $1.1 billion or 23.7%. Volume, as measured by average balances and interest rates decreased in the current year period. The average advances balance was $103.4 billion at an aggregate yield of 474 basis points in the 2025 period, compared to an average balance of $111.0 billion at an aggregate yield of 578 basis points in the 2024 period.

Table 9.7 Advances Prepayment Fees (in thousands)


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Gross amount of prepayment fees received from advance borrowers	$	145	$	2,904	$	996	$	3,918
Gross amount of prepayment credits paid to advance borrowers		-		(3,631)		(186)		(4,160)
Hedging fair value adjustments		-		3,470		310		4,096
Other ^(a)		449		(1,668)		4,643		(1,184)
Total advance prepayment fees, net	$	594	$	1,075	$	5,763	$	2,670

(a)	Recognition of deferred prepayment fees.

Liquidity Investments - Money Market Investments and U.S. Treasury Securities- We derive interest income from maintaining highly-liquid portfolios of investments to meet liquidity regulatory requirements. Lower interest income from overnight invested funds, specifically federal funds sold and repurchase agreements was due to a decrease in market yields in the third quarter of 2025 compared to the same period in 2024. Interest income from federal funds sold was $199.6 million, down from $260.7 million. Federal funds sold yielded 437 basis points in aggregate in the third quarter of 2025, compared to 537 basis points in the third quarter of 2024. Interest income from securities purchased under agreements to resell was $81.7 million, up from $68.6 million. Securities purchased under agreements to resell yielded 435 basis points in aggregate in the third quarter of 2025, compared to 534 basis points in the third quarter of 2024. Interest income from fixed-rate U.S. Treasury securities was $55.9 million in the third quarter of 2025, up from $51.9 million in the third quarter of 2024 due to larger average balances; yields decreased slightly to 312 basis points, compared to 314 basis points in third quarter of 2024. The liquidity trading portfolio is comprised primarily of medium-term, highly liquid fixed-rate U.S. Treasury securities that are available to enhance and meet our liquidity objectives. Securities are not acquired for speculative purposes.

On a year-to-date basis, interest income from overnight invested funds, specifically federal funds sold and securities purchased under agreements to resell decreased mainly due to lower interest rates. Investments in federal funds sold yielded 438 basis points in 2025, compared to 540 basis points in the same period in 2024. Securities purchased under agreements to resell yielded 436 basis points in aggregate in the year-to-date period of 2025, compared to 538 basis points in the same period in 2024. Interest income from fixed-rate U.S. Treasury securities was $180.9 million in the year-to-date period of 2025, up from $138.0 million in the same period in 2024 due to higher average invested balances; yields increased to 319 basis points, compared to 306 basis points in the year-to-date period of 2024.

The earnings impact due to changes in market values of the securities outstanding (unrealized gains and losses) and realized gains and losses on securities sold are recorded in Other income (below the margin) and are noted in Table 9.10 Net Gains (Losses) on Trading Securities Recorded in the Statements of Income, and discussions thereto. Fixed-rate treasury securities are hedged under economic hedges utilizing swap contracts to synthetically convert fixed cash flows to variable cash flows. The interest settlements on the swaps and changes in the fair values of the swap contracts are recorded in Other income (below the margin); our accounting policies require us to record in Other income the cash flows and fair values on hedging that do not qualify under ASC 815 hedging (economic hedges).

Mortgage-backed-securities

Interest income from floating-rate MBS decreased by $7.8 million or 10.1% in compared to 2024 third quarter due primarily to lower rates.

On a year-to-date basis, interest income from floating-rate MBS decreased by $48.1 million or 20.4% in the current year compared to same period in the prior year.

Interest income from fixed-rate MBS decreased by $5.8 million or 3.5% in the third quarter of 2025 compared to the third quarter of 2024 due to lower aggregate yield, which was 415 basis points in the third quarter of 2025, down from 440 basis points in the third quarter of 2024. Transaction volume of fixed-rate MBS, as measured by average outstanding balance was $15.1 billion in the third quarter of 2025, compared to $14.8 billion in the third quarter of 2024.

On a year-to-date basis, interest income from fixed-rate MBS decreased by $13.7 million or 2.9% in the current year compared to the same period in the prior year.

Mortgage loans held-for-portfolio- Interest income from mortgage loans was $25.3 million and $71.9 million for the three and nine months ended September 30, 2025, compared to $20.8 million and $59.6 million in the same period in the prior year. Investment volume has increased, with acquisitions exceeding paydowns. MPF loans are primarily 15- and 30-year conventional loans. The portfolio averaged $2.5 billion, yielding 401 basis points in the three months ended September 30, 2025, compared to 364 basis points in the same period last year. We continue to see prepayments although the pace of which has slowed, causing accelerated amortization of premiums, specifically on 20-year and 30-year high-balance mortgage loans. Net amortization expense was $0.6 million and $1.5 million in the three and nine months ended September 30, 2025, compared to net amortization expense of $1.0 million and $2.8 million in the same period in the prior year. The Bank's portfolio is largely at a premium price and amortization is sensitive to changes in prepayment speeds particularly in a volatile interest rate environment. The Bank does not hedge mortgage loans in an ASC 815 hedge or an economic hedge.

As noted in the audited financial statements under Note 1. Summary of Significant Accounting Policies, we implemented a new mortgage program, the Mortgage Asset Program in late March 2021. At September 30, 2025, mortgage loans under MAP were $1.1 billion (par amounts). Effective March 31, 2021, we ceased to accept mortgage commitments to purchase loans under the MPF program; the MAP became our alternative to MPF. The outstanding MPF portfolio will continue to be serviced and managed under its existing contractual agreements.

Interest Expense

Our primary source of funding is the issuance of Consolidated obligation bonds and discount notes to investors in the global debt markets issued through the Office of Finance, the FHLBank's fiscal agent. Consolidated obligation bonds are generally medium- and long-term bonds, while Consolidated obligation discount notes are short-term instruments. To fund our assets, our management considers our interest rate risk and liquidity requirements in conjunction with consolidated obligation buyers' preferences and capital market conditions when determining the characteristics of debt to be issued. Typically, we have used fixed-rate callable and non-callable CO bonds to fund mortgage-related assets and advances. CO discount notes are generally issued to fund advances and investments with shorter interest rate reset characteristics.

Changes in bond market rates, changes in intermediation volume (average interest-costing liabilities and interest-earning assets), the mix of debt issuances between CO bonds and CO discount notes, and the impact of hedging strategies are the primary factors that drive period-over-period changes in interest expense.

Derivative strategies are used to manage the interest rate risk inherent in fixed-rate debt. We execute our strategies by converting the fixed-rate funding to floating-rate debt using swap contracts indexed to a risk-free benchmark interest rate. Our adopted hedging benchmarks are SOFR-OIS and Federal Funds-OIS. For ASC 815 qualifying hedges of debt, swap interest settlements and fair value gains and losses are recorded in interest expense together with the interest expense accrued on the hedged CO debt.

The principal categories of Interest expense are summarized below (dollars in thousands):

Table 9.8 Interest Expense - Principal Categories


	Three months ended September 30,						Nine months ended September 30,
					Percentage						Percentage
	2025		2024		Change		2025		2024		Change
Interest Expense
Consolidated obligations bonds
Fixed	$	591,019	$	681,441	(13.27)	%	$	1,722,336	$	2,238,159	(23.05)	%
Floating		350,708		572,257	(38.71)			1,132,996		1,499,814	(24.46)
Consolidated obligations discount notes		665,694		795,458	(16.31)			1,984,161		2,329,973	(14.84)
Deposits		29,623		29,807	(0.62)			84,439		96,990	(12.94)
Mandatorily redeemable capital stock		168		149	12.75			414		465	(10.97)
Cash collateral held and other borrowings		1,063		329	223.10			1,707		718	137.74
Securities sold under agreement to repurchase		-		-	NM			12		-	NM
Total interest expense	$	1,638,275	$	2,079,441	(21.22)	%	$	4,926,065	$	6,166,119	(20.11)	%

NM - Not meaningful.

Interest expense for the 2025 third quarter was $1.6 billion, a decrease of 21.2% compared to the 2024 third quarter. (As noted elsewhere in this document, interest income decreased by 20.1% compared to the 2024 third quarter).

The decrease in interest expense was driven by lower average balances in short-term Consolidated obligations outstanding and lower market interest rates in the 2025 third quarter.

Rate-related decrease in funding expense was $355.4 million. Volume-related decrease in funding expense was $85.8 million in the 2025 third quarter compared to the 2024 third quarter. Aggregate yield paid on total funding in the 2025 third quarter was 425 basis points, compared to 518 basis points in the 2024 third quarter.

Interest expense in the 2025 year-to-date period was $4.9 billion, a decrease of $1.3 billion or 20.1% compared to the same period in the prior year. To provide context, interest income decreased by $1.3 billion or 19.5% compared to the year-to-date period in the prior year.

We continue to monitor our liability composition which has remained consistent as compared to 2024. The usage of CO discount notes was 38.3% in 2025 third quarter from 35.6% in the 2024 third quarter. In the third quarter of 2025, 35.2% of average earning assets were funded by fixed-rate CO bonds and 19.3% were funded by floating-rate CO bonds. In the third quarter of 2024, fixed-rate CO bonds funded 32.8% of earning assets and floating-rate CO bonds funded 24.7% of earning assets.

In the 2025 year-to-date period, 34.3% of average earning assets were funded by fixed-rate CO bonds and 20.8% were funded by floating-rate CO bonds. In the same period in the prior year, fixed-rate CO bonds funded 36.1% of earning assets and floating-rate CO bonds funded 21.7% of earning assets.

Hedging strategies under ASC 815 have remained effective and are operating as designed. For more information, see Table 9.3 Net Interest Adjustments from Qualifying Hedge Interest Rate Swaps.

Allowance for Credit Losses - 2025 Periods Compared to 2024 Periods

We recorded net provisions of $313 thousand and net provisions of $421 thousand in the three and nine months ended September 30, 2025, compared to net provisions of $74 thousand and net reversals of $710 thousand in the same periods in the prior year against our mortgage loan portfolio. We also recorded net reversals of $601 thousand and net reversals of $570 thousand in the three and nine months ended September 30, 2025, compared to net provisions of $13 thousand and $37 thousand in the same periods in the prior year against our investment portfolio. No allowance was necessary on advances, other assets, and commitments.

Analysis of Non-Interest Income (Loss) - 2025 Third quarter Compared to 2024 Third quarter

The principal components of Non-interest income (loss) are summarized below (in thousands):

Table 9.9 Other Income (Loss)


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Other income (loss)
Service fees and other ^(a)	$	5,325	$	5,672	$	16,345	$	16,001
Instruments held under the fair value option gains (losses) ^(b)		(12,592)		(38,994)		(40,753)		(66,316)
Derivative gains (losses) ^(c)		10,380		(89,062)		(27,605)		27,049
Securities gains (losses) ^(d)		23,561		151,711		113,252		100,176
Equity investments gains (losses) ^(e)		5,267		5,736		10,784		11,265
Litigation settlement		7		-		7		-
Gains (losses) from extinguishment of debt		-		54		-		54
Total other income (loss)	$	31,948	$	35,117	$	72,030	$	88,229

(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 $4.5 million in the third quarter of current year compared to $4.8 million in the same period in the prior year. On a year-to-date basis through September 30, Service fees earned on financial letters of credit were $13.8 million in the current year, compared to $14.2 million in the same period in the prior year. Immaterial amounts of fees paid, and other expenses were included in reported revenues.

(b)

FVO Instruments - Net fair value gains and losses represented changes in fair values of CO bonds and CO discount notes elected under the FVO. For more information, see Fair Value Option Disclosures in Note 18. Fair Values of Financial Instruments in this Form 10-Q.

(c)

See Table 9.11 Other Income (Loss) - Impact of Derivative Gains and Losses.

(d)

Included in this amount is the gain from the sale of the PLMBS portfolio. See Table 9.10 Net Gains (Losses) on Trading Securities Recorded in the Statements of Income.

(e)

Fair value gains (losses) on Equity investments - The grantor trusts invest in money market, equity and fixed income and bond funds, and funds are classified as equity investments. Daily net asset values (NAVs) are readily available and investments are redeemable at short notice. NAVs are the fair values of the funds in the grantor trusts. Gains and losses are typically unrealized, and primarily represent changes in portfolio valuations. The grantor trusts are owned by the FHLBNY with the objective of providing liquidity to pay for pension benefits to retirees vested in retirement plans.

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 September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Net unrealized gains (losses) on trading securities held at period-end	$	23,643	$	151,711	$	116,141	$	100,273
Net gains (losses) on trading securities sold/matured during the period		(735)		-		(3,542)		(97)
Net gains (losses) on trading securities	$	22,908	$	151,711	$	112,599	$	100,176

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 $7.6 billion at September 30, 2025 and at December 31, 2024.

Other income (loss) - Derivatives and Hedging Activities - 2025 Third quarter Compared to 2024 Third 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 September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Derivatives not designated as hedging instruments
Interest rate swaps ^(a)	$	(18,884)	$	(153,129)	$	(114,100)	$	(93,728)
Caps or floors		1,108		(163)		974		(197)
Mortgage delivery commitments		466		686		762		585
Swaps economically hedging instruments designated under FVO ^(b)		12,356		39,284		40,845		65,441
Accrued interest on derivatives in economic hedging relationships ^(c)		16,303		24,068		46,906		53,230
Net gains (losses) related to derivatives not designated as hedging instruments	$	11,349	$	(89,254)	$	(24,613)	$	25,331
Price alignment amount ^(d)		(969)		192		(2,992)		1,718
Net gains (losses) on derivatives and hedging activities	$	10,380	$	(89,062)	$	(27,605)	$	27,049

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.

(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 losses of $19.1 million and $157.0 million in the third quarter of 2025 and 2024. In the year-to-date period ended September 30, 2025 and 2024 fair value losses of $114.4 million and $97.7 million were recorded. 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.

Operating Expenses, Compensation and Benefits, and Other Expenses - 2025 Periods Compared to 2024 Periods

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 September 30,
			Percentage of				Percentage of
	2025		Total		2024		Total
Operating Expenses ^(a)
Compensation & Benefits	$	29,404	44.08	%	$	28,653	41.85	%
Occupancy		2,960	4.44			2,926	4.27
Depreciation		4,249	6.37			3,555	5.19
Contractual and Computer Service Agreement		12,446	18.66			13,309	19.44
Professional Fees		2	-			328	0.48
Other Operating Expenses ^(b)		3,248	4.87			3,547	5.18
Total Operating Expenses		52,309	78.42			52,318	76.41
Voluntary Contributions		6,306	9.46			8,264	12.07
Finance Agency and Office of Finance ^(c)		6,083	9.12			5,544	8.10
Other Expenses ^(d)		2,003	3.00			2,345	3.42
Total Operating Expenses and Others	$	66,701	100.00	%	$	68,471	100.00	%


	Nine months ended September 30,
			Percentage of				Percentage of
	2025		Total		2024		Total
Operating Expenses ^(a)
Compensation & Benefits	$	89,872	46.54	%	$	84,148	44.63	%
Occupancy		9,195	4.76			8,656	4.59
Depreciation		12,322	6.38			10,738	5.70
Contractual and Computer Service Agreement		35,549	18.41			36,526	19.37
Professional Fees		26	0.01			848	0.45
Other Operating Expenses ^(b)		8,947	4.63			12,929	6.86
Total Operating Expenses		155,911	80.73			153,845	81.60
Voluntary Contributions		13,624	7.06			12,193	6.47
Finance Agency and Office of Finance ^(c)		17,515	9.07			16,127	8.55
Other Expenses ^(d)		6,073	3.14			6,376	3.38
Total Operating Expenses and Others	$	193,123	100.00	%	$	188,541	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.

Assessments - 2025 Periods compared to 2024 Periods

For more information about assessments, see Affordable Housing Program and Other Mission Related Programs and Assessments under Part I Item 1 Business in the most recent Form 10-K for the year ended December 31, 2024, filed on March 21, 2025.

The following table provides roll forward information with respect to changes in Affordable Housing Program liabilities (in thousands):

Table 10.1 Affordable Housing Program Liabilities


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Beginning balance	$	231,652	$	210,721	$	231,447	$	187,027
Additions from current period's assessments		17,768		20,391		52,097		65,074
Net disbursements for grants and programs		(19,120)		(24,153)		(53,244)		(45,142)
Ending balance	$	230,300	$	206,959	$	230,300	$	206,959

AHP assessments allocated from net income totaled $17.8 million for the third quarter of the current year, compared to $20.4 million for the same period in the prior year. Assessments are calculated as a percentage of net income, and the changes in allocations were in tandem with changes in net income.

Legislative and Regulatory Developments

Federal regulatory environment. The Bank is subject to various legal and regulatory requirements and priorities. Certain actions by the current federal executive administration are changing the regulatory environment, including regulatory priorities and areas of focus, such as deregulation, which have affected, and will likely continue to affect, certain aspects of our business operations, and could impact our financial condition, results of operations and reputation.

As of the third quarter of 2025, the Finance Agency has rescinded the regulatory interpretation that had imposed detailed criteria on FHLBank acceptance of municipal securities as eligible collateral and outlined how to determine and verify eligibility of municipal bonds. We are reviewing this rescission and assessing the potential impact on the Bank's collateral eligibility policies. In addition, the Finance Agency has withdrawn two proposed rules published in 2024: (i) the proposed rule published in November 2024 that would have amended regulations addressing boards of directors and overall corporate governance of the FHLBanks and the Office of Finance and (ii) the proposed rule published in October 2024 that would have amended our capital requirements by modifying limits on the Bank's extensions of unsecured credit. In October 2025, the Finance Agency rescinded several advisory bulletins and certain technical guidance documents. We are reviewing these rescissions and assessing any potential impact they may have on the Bank and its policies and procedures.

Considering the changes in the regulatory environment, there is uncertainty with respect to the ultimate result of future regulatory actions and the ultimate impact they may have on the Bank and the FHLBank System. We continue to monitor these actions as they evolve and to evaluate their potential impact on the Bank. For a discussion of related risks, please refer to Item 1A Risk Factors in the Bank's 2024 Form 10-K.

New York Voidable Preference Law. On September 26, 2025, New York Bill AB 5600 was signed into law amending New York's insurance laws to address the treatment of voidable transfers involving Federal Home Loan Banks (FHLBanks). Among other provisions, the bill provides that (i) court-appointed receivers may not void a legitimate collateral transfer made by an insurer-member to a FHLBank, except where a transfer is made with the intent to hinder, delay, or defraud the insurer-member, the receiver, or future creditors and (ii) a FHLBank will not be subject to a stay or injunction or be prohibited from exercising its rights upon the commencement of a delinquency proceeding against a FHLBank insurer-member. The bill further provides that, within five days of a receiver's request, a FHLBank must establish a timeline and process to release excess collateral and residual collateral upon full repayment of any outstanding advances, pay any fees and provide for the operation of deposit accounts, and redeem or repurchase FHLBank stock or excess stock held in accordance with federal law and other FHLBank requirements. With the bill's signing, all states and territories within the Bank's district now have similar insurance company-related voidable preference laws in connection with FHLBank advances.

We view this change to New York's insurance laws as favorable to the Bank and will continue to review and monitor the bill's impact on the Bank's credit and collateral operations with respect to New York-based insurance companies.

Puerto Rico Cooperativas Bill. On July 20, 2025, Puerto Rico Senate Bill 277 was signed into law as Law 73-2025, amending Puerto Rico's Cooperative Savings and Credit Associations Act of 2002. The bill is intended to facilitate FHLBank membership for Puerto Rico cooperatives (known as 'cooperativas' in Puerto Rico), which are retail financial institutions owned by their depositors. Law 73-2025 explicitly allows these cooperatives to become FHLBank members, protects FHLBank collateral in the event of insolvency or conservatorship, and facilitates regular information sharing between FHLBanks and the Public Corporation for the Supervision and Insurance of Cooperatives (COSSEC), the entity which regulates and insures Puerto Rico cooperatives. It also establishes procedures for communication in the event of a cooperative insolvency or conservatorship between FHLBanks and COSSEC. Among other things, this communication framework includes the release of excess collateral, disposition of FHLBank stock, and options for renewing or restructuring FHLBank advances.

We view this change in Puerto Rico law as favorable to the Bank and will continue to monitor and review this bill's impact on the Bank and its operations and financial condition.

Federal Home Loan Bank of New York published this content on November 06, 2025, and is solely responsible for the information contained herein. Distributed via Edgar on November 06, 2025 at 20:48 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]

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