Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Forward-Looking Statements
Statements contained in this Annual Report on Form 10-K, 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 and the risks set
forth below, and that actual results could differ materially from those expressed or implied in these forward-looking statements. As a
result, you are cautioned not to place undue reliance on such statements. These forward-looking statements speak only as of the date
they were made, and the Bank does not undertake to update any forward-looking statement herein. Forward-looking statements
include, among others, the following:
• the Bank’s projections regarding income, retained earnings, dividend payouts, and the repurchase of excess capital stock;
• the Bank’s statements related to gains and losses on derivatives, future credit and impairment charges, and future
classification of securities;
• the Bank’s expectations relating to future balance sheet growth;
• the Bank’s targets under the Bank’s retained earnings plan;
• the Bank’s expectations regarding the size of its mortgage loan portfolio, particularly as compared to prior periods;
• the Bank’s statements related to reform legislation or executive actions, including, without limitation, housing or
government-sponsored enterprise legislation or executive orders; and
• executive, legislative, regulatory, and judicial events and actions or other developments that affect the Bank, its members,
counterparties, or investors in the consolidated obligations of the Federal Home Loan Banks (FHLBanks), such as any
government-sponsored enterprise (GSE) reforms, any changes resulting from the Finance Agency’s review and analysis of
the FHLBank System, including recommendations published in its “FHLBank System at 100: Focusing on the Future”
report, 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 and the risks set forth below:
• changes in economic and market conditions, including the evolving risks relating to the March 2023 U.S. banking sector
liquidity crisis;
• changes in demand for Bank advances and other products resulting from changes in members’ and FDIC deposit flows and
members’ credit demands or otherwise;
• an increase in advance prepayments as a result of changes in interest rates (including negative interest rates) or other
factors;
• the volatility of market prices, rates, and indices that could affect the value of collateral held by the Bank as security for
obligations of Bank members and counterparties to interest rate exchange agreements and similar agreements;
• political events, including legislative developments and executive orders that affect the Bank, its members, counterparties,
and/or investors in the Consolidated obligations (COs) of the FHLBanks;
• competitive forces including, without limitation, other sources of funding available to Bank members, other entities
borrowing funds in the capital markets, and the ability to attract and retain skilled employees;
• the pace of technological change and the ability of the Bank to develop and support technology and information systems,
including cybersecurity, sufficient to manage the risks of the Bank’s business effectively;
• changes in investor demand for COs and/or the terms of interest rate exchange agreements and similar agreements;
• timing and volume of market activity;
• ability to introduce new or adequately adapt current Bank products and services and successfully manage the risks
associated with those products and services, including new types of collateral used to secure advances;
• risk of loss arising from litigation filed against one or more of the FHLBanks;
• realization of losses arising from the Bank’s joint and several liability on COs;
• risk of loss due to fluctuations in the housing market;
• inflation or deflation;
• issues and events within the FHLBank System and in the political arena that may lead to legislative, regulatory, judicial, or
other developments or executive orders that may affect the marketability of the COs, the Bank’s financial obligations with
respect to COs, and the Bank’s ability to access the capital markets;
• the availability of derivative financial instruments of the types and in the quantities needed for risk management purposes
from acceptable counterparties;
• significant business disruptions resulting from natural or other disasters (including, but not limited to, health emergencies
such as pandemics or epidemics), acts of war (including, but not limited to, the war between Ukraine and Russia or the
conflicts in the Middle East), cyberattacks or terrorism;
• the effect of new accounting standards, including the development of supporting systems;
• membership changes, including changes resulting from mergers or changes in the principal place of business of Bank
members;
• the soundness of other financial institutions, including Bank members, nonmember borrowers, other counterparties, and the
other FHLBanks; and
• the willingness of the Bank’s members to do business with the Bank whether or not the Bank is paying dividends or
repurchasing excess capital stock.
Risks and other factors could cause actual results of the Bank to differ materially from those implied by any forward-looking
statements. These risk factors are not exhaustive. The Bank operates in changing economic, legislative and regulatory environments,
and new risk factors will emerge from time to time. Management cannot predict such new risk factors nor can it assess the impact, if
any, of such new risk factors on the business of the Bank or the extent to which any factor, or combination of factors, may cause actual
results to differ materially from those implied by any forward-looking statements.
Organization of Management’s Discussion and Analysis (MD&A).
This MD&A is designed to provide information that will assist the readers in better understanding the FHLBNY’s financial
statements, the changes in key items in the Bank’s financial statements from period to period and the primary factors driving those
changes as well as how accounting principles affect the FHLBNY’s financial statements. The MD&A is organized as follows:
Page
Executive Overview
Trends in the Financial Markets
Recently Issued Accounting Standards and Interpretations and Critical Accounting Policies and Estimates
Legislative and Regulatory Developments
Financial Condition
Advances
Investments
Mortgage Loans Held-for-Portfolio, Net
Debt Financing Activity and Consolidated Obligations
Recent Rating Actions
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
Voluntary Contributions
MD&A TABLE & FIGURE REFERENCE
Table(s) & Figure(s)
Description
Page(s)
Selected Financial Data
Market Interest Rates
Financial Condition
Advances
Investments
Mortgage Loans Held-for-Portfolio
Consolidated Obligations
FHLBNY Ratings
Capital
Derivatives Instruments and Hedging Activities
Liquidity
FHFA MBS Limits and Core Mission Achievement
Results of Operations
Assessments
Voluntary Contributions
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-K. 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-K should be read in its entirety.
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 2025, the Bank’s continued focus on executing on our foundational liquidity mission in a safe and
sound manner and serving the needs of our members and community partners drove our strong performance, annual income and
record contributions to our housing and economic development programs and products.
2025 Financial Results
Net income — Net income for 2025 was $599.8 million , a decrease of $138.7 million , or 18.8% , from net income of $738.5 million
for 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 2025 was $851.8 million , a decrease of $135.0 million , or 13.7% , from $986.8
million in 2024 . Earnings were lower versus the prior year due to lower market interest rates that reduced earnings from capital and
smaller earning asset balances. Yield on assets decreased to 4.49% for 2025 from 5.34% in 2024 while the funding cost decreased to
4.18% for 2025 from 5.04% in 2024 . Net interest spread increased to 31 basis points in 2025 compared to 30 basis points in 2024 .
Average earning assets balances decreased by $6.7 billion to $160.2 billion in 2025 compared with $166.9 billion in 2024 . Average
advances balances decreased by $8.9 billion to $100.5 billion in 2025 , down from $109.4 billion in 2024 .
Return on average equity (ROE) for 2025 was 7.25% , compared to ROE of 8.49% for 2024 .
Other income (loss) — Other income (loss) decreased by $9.5 million , or 8.51% , to $103.1 million in 2025 compared with the prior
year, mainly driven by a decrease in net unrealized fair value gains on derivatives and hedged items, including trading securities held
for liquidity purposes.
Other expenses were $288.3 million in 2025 compared to $279.0 million in 2024 . 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. Other expenses have increased by $9.2 million ,
driven by an increase in compensation and benefits.
Affordable Housing Program Assessments (AHP) allocated from net income were $66.7 million in 2025 compared to $82.1 million
in 2024 . Assessments are calculated as a percentage of net income, and changes in allocations were proportional with changes in net
income.
Dividend payments — Four quarterly cash dividends were paid in 2025 for a total of $7.99 per share of capital, compared to total of
$9.50 per share of capital in 2024 .
Financial Condition — December 31, 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 $156.5 billion at December 31, 2025 , from $160.3 billion at December 31, 2024 , a decrease of $3.8 billion ,
or 2.4% . As of December 31, 2025 , advances were $92.3 billion , a decrease of $13.5 billion , or 12.8% , from $105.8 billion at
December 31, 2024 .
Cash at banks was $38.2 million at December 31, 2025 , compared to $26.1 million at December 31, 2024 .
Liquidity investments — Money market investments increased $7.4 billion at December 31, 2025 to $30.5 billion , as compared to
$23.1 billion at December 31, 2024 . We continue to ensure an ample supply of funds to meet liquidity demands. Interest-bearing
deposits at highly rated financial institutions increased $0.2 billion to $3.0 billion as well as a $5.1 billion increase in overnight resale
agreements to $16.0 billion and a $2.1 billion increase in Federal funds to $11.5 billion .
For liquidity, we maintain a portfolio of U.S. Treasury securities designated as trading to meet short-term contingency liquidity needs.
Balances were $7.4 billion and $7.2 billion at December 31, 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 $10.1 billion at December 31,
2025 and $8.7 billion at December 31, 2024 of high credit quality GSE-issued available-for-sale (AFS) securities that are investment
grade and readily marketable.
For more information about our liquidity measures, see section Liquidity, Cash Flows, Short-Term Borrowings and Short-Term Debt,
and Table 9.1 through Table 9.5 in this MD&A.
Advances — Par balances decreased at December 31, 2025 to $92.5 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. We have no history of credit losses on
advances.
Long-term investment debt securities — Long-term investment debt securities are designated as 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 $10.1 billion and $8.6
billion at December 31, 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 $1.7
billion at December 31, 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
$10.3 billion and $10.7 billion at December 31, 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 December 31, 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
December 31, 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 $103.7 million at December 31, 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 $1.4 billion at December 31, 2025 , a decrease of $137.0 million from the balance at
December 31, 2024 . Unpaid principal balance of MAP loans stood at $1.2 billion at December 31, 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 $8.0 billion at December 31, 2025 compared to
$8.5 billion at December 31, 2024 . Required risk-based capital was $1.1 billion at December 31, 2025 compared to $1.0 billion at
December 31, 2024 . To support $156.5 billion of total assets at December 31, 2025 , the minimum required total capital was $6.3
billion , or 4.0% of assets. Our actual regulatory risk-based capital was $8.0 billion , exceeding required total capital by $1.8 billion .
These ratios have remained consistently above the required regulatory ratios through all periods in this report.
Leverage — At December 31, 2025 balance sheet leverage (based on U.S. GAAP) was 19.5 times shareholders’ equity compared to
19.1 times 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.
Selected Financial Data .
Statements of Condition
Years ended December 31,
(dollars in millions)
Investments (a)
Advances
Mortgage loans held-for-portfolio, net (b)
Total assets
Deposits and borrowings
Consolidated obligations, net
Bonds
Discount notes
Total consolidated obligations
Mandatorily redeemable capital stock
AHP liability
Capital
Capital stock
Retained earnings
Unrestricted
Restricted
Total retained earnings
Accumulated other comprehensive income (loss)
Total capital
Equity to asset ratio (c)(j)
Statements of Condition
Years ended December 31,
Averages (See note below; dollars in millions)
Investments (a)
Advances
Mortgage loans held-for-portfolio, net
Total assets
Interest-bearing deposits and other borrowings
Consolidated obligations, net
Bonds
Discount notes
Total consolidated obligations
Mandatorily redeemable capital stock
AHP liability
Capital
Capital stock
Retained earnings
Unrestricted
Restricted
Total retained earnings
Accumulated other comprehensive income (loss)
Total capital
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
Years ended December 31,
(dollars in millions, except earnings and dividends per share, and headcount)
Net income
Net interest income (d)
Dividends paid in cash (e)
AHP expense
Return on average equity (f)(g)(j)
Return on average assets (g)(j)
Other non-interest income (loss)
Operating expenses (h)
Voluntary Contributions
Other expenses (k)
Total Operating and Other expenses
Operating expenses ratio (g)(i)(j)
Earnings per share
Dividends per share
Headcount (Full/part time) (l)
(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 $3.7 million , $3.1 million , $3.3 million , $1.9 million , and $2.1 million for the years ended
December 31, 2025 , 2024 , 2023 , 2022 and 2021 , 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.
(l) The Bank increased headcount in 2024 to enhance its infrastructure including credit underwriting, risk management and
technology.
Trends on the Financial Markets
Conditions in Financial Markets . The primary external factors that affect net interest income are market interest rates and the general
state of the economy. The following table presents changes in key rates over the course of 2025 and 2024 (rates in percent):
Table 1.1 Market Interest Rates
December 31,
Average
Average
Ending Rate
Ending Rate
Federal Funds Target Rate
Federal Funds Effective Rate (a)
SOFR (a)
2-Year U.S. Treasury
5-Year U.S. Treasury
10-Year U.S. Treasury
15-Year Residential Mortgage Note Rate
30-Year Residential Mortgage Note Rate
(a) Source: Board of Governors Federal Reserve System; all other sources are Bloomberg L.P.
During the year, the market rates continued to rise slightly as the Federal Reserve continued to combat inflation.
Impact of general level of interest rates on the FHLBNY. The level of interest rates impacts our profitability, due primarily to the
relatively shorter-term structure of earning assets and the impact of interest rates on invested capital. We invest in Federal funds sold
and repurchase agreements that typically are overnight investments. We also use derivatives to effectively change the repricing
characteristics of a significant proportion of our advances and Consolidated obligation debt to match shorter-term benchmark interest
rates or overnight indices (SOFR and Federal funds effective rate) that reprice at intervals of three month or as frequently as daily.
Consequently, the current level of short-term interest rates, as represented by the overnight Federal funds target rate and the overnight
SOFR, has an impact on profitability.
The level of interest rates also directly affects our earnings on invested capital. Compared to other banking institutions, we operate at
comparatively low net spreads between the yield we earn on assets and the cost of our liabilities. Therefore, we generate a relatively
higher proportion of our income from the investment of member-supplied capital at the average asset yield. As a result, changes in
asset yields tend to have a greater effect on our profitability than they do on the profitability of other banking institutions.
In summary, our average asset yields and the returns on capital invested in these assets largely reflect the short-term interest rate
environment because the maturities of our assets are generally short-term in nature, have rate resets that reference short-term rates, or
have been hedged with derivatives in which a short-term or overnight rate is received. Changes in rates paid on Consolidated
obligations and the spread of these rates relative to SOFR and the Federal funds rate or to U.S. Treasury securities may also impact
profitability. The rates and prices at which we are able to issue Consolidated obligations, and their relationship to other products such
as Treasury securities, change frequently and are affected by a multitude of factors including: overall economic conditions, including
inflation; volatility of market prices, rates, and indices; the level of market interest rates and shape of yield curves; supply from other
issuers (including other GSEs, supra/sovereigns, and other highly-rated borrowers); yields and asset prices of other securities in the
market; investor preferences; the total volume, timing, and characteristics of issuance by the FHLBanks; the amount and type of
advance demand from our members; policy decisions, including legislation, monetary policy changes by the Federal Reserve, and
actions of financial regulators; and potentially adverse press about the FHLBank System.
Recently Issued Accounting Standards and Interpretations and Critical Accounting Policies and Estimates
For a discussion of recently issued accounting standards and interpretations, see financial statements, Note 2 . Financial Accounting
Standards Board (FASB) Standards Issued.
Critical Accounting Policies and Estimates
We have identified certain accounting policies that we believe are critical because they require management to make subjective
judgments about matters that are inherently uncertain and because of the likelihood that materially different amounts would be
reported under different conditions or by using different assumptions. These policies include estimating fair values of certain assets
and liabilities, and accounting for derivatives and hedging activities. We have discussed each of these critical accounting policies, the
related estimates, and its judgment with the Audit Committee of the Board of Directors. Refer to Note 1 . Summary of Significant
Accounting Policies in this Form 10-K.
Fair Value Measurements
The accounting standards on fair value measurements discuss how entities should measure fair value based on whether the inputs to
those valuation techniques are observable or unobservable. Fair value is defined as the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction in the principal or most advantageous market for the asset or liability between
market participants at the measurement date. This definition is based on an exit price rather than transaction or entry price.
The FHLBNY complied with the accounting guidance on fair value measurements and has established a hierarchy for inputs used in
measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the
most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or
liability and would be based on market data obtained from independent sources. Unobservable inputs are inputs that reflect our
assumptions about the parameters market participants would use in pricing the asset or liability and would be based on the best
information available in the circumstances. Our pricing models are subject to periodic validations, and we periodically review and
refine, as appropriate, our assumptions and valuation methodologies to reflect market indications as closely as possible. We have the
appropriate personnel, technology, and policies and procedures in place to value financial instruments in a reasonable and consistent
manner and in accordance with established accounting policies.
Valuation of Financial Instruments — The following assets and liabilities, including those for which the FHLBNY has elected the
fair value option, were carried at fair value on the Statements of Condition as of December 31, 2025 :
• Fair values of derivative instruments — Derivatives are valued using internal valuation techniques as no quoted market prices
exist for such instruments, and we employ industry standard option adjusted valuation models that generate fair values of
interest rate derivatives. We have classified derivatives as Level 2.
• Fair values of instruments elected under the Fair Value Option — When the FHLBNY elects the FVO, the election is made
on an instrument-by-instrument basis on Consolidated obligation debt and advances, which are fair valued using the Bank’s
industry standard option adjusted models. We have classified instruments elected under the FVO as Level 2.
• Fair values of available-for-sale mortgage-backed securities — We request prices for all mortgage-backed securities from
third-party vendors. Typically, fair values are classified as Level 2.
• Fair values of available-for-sale Housing finance agency bonds — We request pricing information from pricing services.
Due to the current lack of significant market activity, their fair values are classified as Level 3.
• Trading Securities — The FHLBNY classifies trading securities as Level 1 of the fair value hierarchy when we use quoted
market prices in active markets to determine the fair value of trading securities, such as U.S. Government and GSE securities.
We classify trading securities as Level 2 of the fair value hierarchy when we use quoted market prices in less active markets
to determine the fair value of trading securities.
• Equity Investments — The FHLBNY has grantor trusts to support the Bank’s retirement plans, which invests in money
market, equity and fixed income and bond funds. Daily net asset values (NAVs) are readily available, and investments are
redeemable at short notice. Because of the highly liquid nature of the investments at their NAVs, they are categorized as
Level 1 financial instruments under the valuation hierarchy.
Derivatives and Hedging Activities
Generally, we enter into derivatives primarily to manage our exposure to changes in interest rates. Through the use of derivatives, we
may adjust the effective maturity, repricing frequency, or option characteristics of financial instruments to achieve our risk
management objectives. The accounting guidance related to derivatives and hedging activities is complex and contains prescriptive
documentation requirements. At the inception of each hedge transaction, we formally document the hedge relationship, its risk
management objective, and strategy for undertaking the hedge.
In compliance with accounting standards, primarily ASC 815, the accounting for derivatives requires us to make the following
assumptions and estimates: (i) assessing whether the hedging relationship qualifies for hedge accounting, (ii) assessing whether an
embedded derivative should be bifurcated, (iii) calculating the effectiveness of the hedging relationship, (iv) evaluating exposure
associated with counterparty credit risk, and (v) estimating the fair value of the derivatives. Our assumptions and judgments include
subjective estimates based on information available as of the date of the financial statements and could be materially different based
on different assumptions, calculations, and estimates.
We record and report our hedging activities in accordance with ASC 815. All derivatives are recorded on the statements of condition
at their fair values. Changes in the fair value of all derivatives, excluding those designated as cash flow hedges, are recorded in current
period earnings, while changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recorded in other
comprehensive income (OCI) until earnings are affected by the variability of the cash flows of the hedged transaction. If our hedges do
not qualify for hedge accounting, also known as economic hedges, then the changes in the fair value of the derivatives in the economic
hedge would be recorded in earnings, without an offsetting change in the fair value of the hedged item. As a result, economic hedges
have the potential to cause significant volatility on our results of operations. If hedges qualify under a qualifying ASC 815 hedge, we
may use two approaches to hedge accounting: short-cut hedge accounting and long-haul hedge accounting.
A short-cut hedging relationship assumes no ineffectiveness and implies that the hedge between an interest-rate swap and an interest-
bearing financial instrument is perfectly correlated. Therefore, it is assumed that changes in the fair value of the interest-rate swap and
the interest-bearing financial instrument will perfectly offset one another; therefore, no ineffectiveness is recorded in earnings or OCI.
To qualify for short-cut accounting treatment, a number of restrictive conditions must be met.
A long-haul hedging relationship requires us to assess, retrospectively and prospectively, on at least a quarterly basis, whether the
derivative and hedged item have been and are expected to be highly effective in offsetting changes in fair value or cash flows
attributable to the hedged risk. We perform a prospective analysis based on a quantitative method at the inception of the hedge, and
subsequently each quarter, we also perform retrospective hedge effectiveness analysis using regression to support our assertion that a
hedge was and will remain effective. If the hedge fails the effectiveness test any time during its life, the hedge relationship no longer
qualifies for hedge accounting and the derivative is marked to fair value through current period earnings without any offsetting
changes in fair value related to the hedged item.
For more information about policies for our derivatives and hedging activities, see financial statements, Note 1 . Summary of
Significant Accounting Policies and Note 17 . Derivatives and Hedging Activities.
Legislative and Regulatory Developments
Certain significant legislative and regulatory actions and developments are summarized below.
Regulatory Environment . The Bank is subject to various legal and regulatory requirements and priorities. Certain actions, regulatory
priorities and areas of focus, such as deregulation, by the federal executive administration, FHFA, and other financial regulators have
changed and continue to impact the regulatory environment. For example, FHFA repealed the Fair Lending, Fair Housing, and
Equitable Housing Finance Plans regulation applicable to the FHLBanks, effective March 9, 2026, citing the federal executive
administration’s deregulatory priorities. Furthermore, during 2025, withdrawals and rescissions of certain rules, proposed rules and
advisory, regulatory, or technical guidance, have affected, and likely will continue to affect, certain aspects of the Bank's business
operations. These changes could impact the Bank's financial condition, results of operations, and reputation.
March 2026 Executive Orders: On March 13, 2026, the federal executive administration issued two executive orders addressing
mortgage credit availability and housing affordability. One executive order directs FHFA and certain other financial regulators to
consider:
(1) revising capital regulations to tailor risk weights for all banks, including community banks, for portfolio mortgages, servicing
rights, and warehouse lines of credit;
(2) modernizing collateral valuation and transfer systems between Federal Reserve Banks and FHLBanks;
(3) expanding access to longer-dated FHLBank advances tied to residential mortgage assets;
(4) creating targeted FHLBank liquidity programs for entry‑level housing, owner‑occupied purchase loans, and small residential
builders;
(5) accelerating collateral boarding and valuation processes through standardized data and digital documentation; and
(6) refocusing FHLBanks’ Affordable Housing Programs to facilitate faster-cycle execution and greater financial leverage for
small-scale and owner-occupied housing projects.
The executive order also instructs FHFA and the Vice Chairman for Supervision of the Federal Reserve to consider authorizing
FHLBanks’ intermediate access to the Federal Reserve’s discount window for FHLBanks’ depository institution members.
Additionally, among other actions, the executive order directs FHFA and other relevant federal agencies to consider facilitating the
acceptance of e-notes and promoting digital mortgage standards. Under the executive order, FHFA, in consultation with other relevant
federal agencies, is required to submit a report on the efficiency of national housing finance markets, identifying recommendations for
regulatory or legislative changes necessary to address any regulatory or oversight gaps.
The second executive order, together with other actions, directs FHFA and certain other federal agencies to consider eliminating
unduly burdensome rules and reforming programs that constrain residential development and impede housing affordability, especially
the construction of affordable single-family homes as well as suburban and exurban neighborhoods.
While we note that the executive orders could potentially affect the Bank’s liquidity products, collateral and operational requirements,
capital deployment, and housing-related initiatives, they do not, by themselves, change existing regulations or program requirements
applicable to the Bank or the FHLBank System. The nature, timing, and scope of any regulatory or programmatic changes resulting
from these executive orders remain uncertain and would be subject to further agency action, including rulemaking or guidance, as
applicable. We will continue to monitor developments related to these executive orders and assess their potential impact on the Bank,
the FHLBank System, and the Bank’s members.
January 2026 Executive Order: On January 20, 2026, the federal executive administration issued an executive order that seeks to
restrict acquisitions by large institutional investors of single-family homes. Among other things, the executive order directs certain
agencies, including FHFA, to issue guidance to (i) prevent agencies and government-sponsored enterprises from providing for,
approving, insuring, guaranteeing, securitizing, or facilitating the acquisition by a large institutional investor of a single-family home
that could otherwise be purchased by an individual owner-occupant, or disposing of federal assets in a manner that transfers a single-
family home to a large institutional investor; and (ii) promote sales to individual owner-occupants, including through anti-
circumvention provisions, first-look policies, and disclosure requirements. The executive order also calls for legislative
recommendations to codify related policies and directs certain agencies to conduct reviews and consider additional measures to
combat speculation by large institutional investors in single-family housing markets. We are unable to predict the nature of the
guidance, measures, or recommendations, or how each may impact the Bank ’ s business.
Considering the changes in the regulatory environment, there is uncertainty with respect to the ultimate result of future regulatory
actions and the impact they may have on the Bank and the FHLBank System. We also cannot predict the federal executive
administration’s actions on U.S. housing finance and government-sponsored enterprises, including relating to the revision or end of
conservatorships of Fannie Mae and Freddie Mac or potential reforms or enhancements to their capital structure, or the imposition of
new requirements or limitations on their existing authorities or changes in the nature of their government backed guarantees, along
with any corresponding impacts to the FHLBank System, the secondary mortgage and mortgage-backed securities market, or the
mortgage industry. We continue to monitor these actions as they evolve and to evaluate their potential impact on us. For a discussion
of related risks, please refer to Item 1A Risk Factors .
Tax Exempt Municipal Bond Legislative Proposal : In February 2026, bipartisan legislation was introduced in the U.S. House of
Representatives and Senate that would restore and make permanent prior authority, previously in effect from 2008 to 2010, permitting
FHLBanks to support tax‑exempt municipal bonds used to finance certain housing‑related and community infrastructure projects,
including water and sewer systems, hospitals, and schools. If enacted, the legislation would allow FHLBanks to provide standby letters
of credit in connection with such municipal bonds through their member institutions. The proposed legislation does not provide for a
federal guarantee or create taxpayer liability. The Bank will continue to monitor this legislative proposal and assess any potential
operational or financial impacts on the Bank if the legislation is enacted.
SEC Treasury Clearing Rule : In December 2023, the U.S. Securities and Exchange Commission adopted rules requiring the central
clearing of certain repurchase agreement transactions (“repos”) in U.S. Treasury securities, subject to phased‑in compliance dates and
applicable exemptions. Compliance for eligible repo transactions is required by June 30, 2027. The Bank is within scope of the rule
with respect to repos but is excluded from the requirement for outright purchases and sales. The Bank has elected to participate in
central clearing on a sponsored basis. The Bank continues to assess implementation requirements and currently is progressing with
onboarding arrangements in advance of the applicable compliance date.
Amendments to New York UCC Addressing Digital Assets : On December 5, 2025, New York Assembly Bill 3307/Senate Bill
1840 was signed into law amending New York’s Uniform Commercial Code (UCC). The legislation modernizes the state’s
commercial rules with respect to digital assets.
Among other things, the legislation (i) adopts a new Article 12 to the New York UCC, which governs the ownership, transfer, and
enforceability of certain digital assets called “controllable electronic records” (including cryptocurrency and non-fungible tokens
(NFTs); (ii) establishes, through amendments to Article 9 of the New York UCC, how parties may perfect a security interest in and
thereby establish ‘control’ of such controllable electronic records; and (iii) ensures the negotiability of digital assets by providing that
a good faith purchaser for value who obtains control (a “qualifying purchaser”) takes its interest free of competing claims. In addition,
the legislation updates the New York UCC to recognize electronic records and signatures and to place electronic records on equal legal
footing with paper‑based records for covered UCC transactions.
This legislation substantially incorporates the 2022 Amendments to the UCC approved by the Uniform Law Commission and
American Law Institute (the “2022 UCC Amendments”). New York joins the more than 30 states in adopting the 2022 UCC
Amendments. The amendments to New York’s UCC law are effective June 3, 2026. We will continue to monitor and review this
legislation’s impact on the Bank and its operations and financial condition.
Financial Condition
Table 2.1 Statements of Condition — Period-Over-Period Comparison
(Dollars in thousands)
December 31, 2025
December 31, 2024
Net change in dollar
amount
Net change in
percentage
Assets
Cash and due from banks
Interest-bearing deposits
Securities purchased under agreements to resell
Federal funds sold
Trading securities
Equity Investments
Available-for-sale securities
Held-to-maturity securities
Advances
Mortgage loans held-for-portfolio
Accrued interest receivable
Premises, software, and equipment
Operating lease right-of-use assets
Finance lease right-of-use assets
Derivative assets
Other assets
Total assets
Liabilities
Deposits
Interest-bearing demand
Non-interest-bearing demand
Total deposits
Consolidated obligations
Bonds
Discount notes
Total consolidated obligations
Mandatorily redeemable capital stock
Accrued interest payable
Affordable Housing Program
Derivative liabilities
Other liabilities
Operating lease liabilities
Finance lease liabilities
Total liabilities
Capital
Total liabilities and capital
Balance Sheet overview December 31, 2025 and December 31, 2024
Total assets decreased to $156.5 billion at December 31, 2025 , from $160.3 billion at December 31, 2024 , a decrease of $3.8 billion ,
Cash at banks was $38.2 million at December 31, 2025 , compared to $ 26.1 million at December 31, 2024 .
Money market investments increased $7.4 billion at December 31, 2025 to $30.5 billion , as compared to $23.1 billion at December 31,
2024 . We continue to maintain an ample supply of funds to meet liquidity demands. Federal funds sold averaged $17.2 billion and
$19.4 billion in 2025 and 2024 , respectively. Resale agreements averaged $7.5 billion and $4.8 billion in 2025 and 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 December 31, 2025 and December 31, 2024 , respectively.
Advances — Par balances decreased at December 31, 2025 to $92.5 billion , compared to $106.5 billion at December 31, 2024 . Short-
term fixed-rate advances increased by 7.6% to $17.0 billion at December 31, 2025 , up from $15.8 billion at December 31, 2024 . ARC
advances, which are adjustable-rate borrowings, decreased by 29.4% to $23.3 billion at December 31, 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 consists almost exclusively of GSE and Agency 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 $292.8 million at December 31, 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
$9.8 billion at December 31, 2025 and $8.3 billion at December 31, 2024 . We acquired $1.4 billion (par) of fixed-rate GSE-issued
MBS in 2025 .
State and local housing finance agency obligations, primarily New York and New Jersey, were carried as AFS securities at $1.7 billion
at December 31, 2025 and $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
$10.3 billion at December 31, 2025 and $10.7 billion at December 31, 2024 . We acquired $1.6 billion (par) of floating-rate GSE-
issued MBS in 2025 .
State and local housing finance agency obligations, primarily New York and New Jersey, were carried as HTM securities at $0.2
billion at December 31, 2025 and December 31, 2024 .
Trading securities (liquidity portfolio) — The objective of the trading portfolio is to 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 December 31, 2025 and December 31, 2024 , trading investments were $7.4 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 $103.7 million at December 31, 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 $1.4 billion at December 31, 2025 , a decrease of $137.0 million from the
balance at December 31, 2024 . Unpaid principal balance of MAP loans stood at $1.2 billion at December 31, 2025 , an increase of
$426.0 million from the balance at December 31, 2024 . The total mortgage loans held-for-portfolio primarily consists of fixed-rate,
single-family mortgages. Paydowns for the total portfolio for twelve months ended December 31, 2025 were $210.1 million compared
to $187.4 million for the same period in 2024 . Acquisitions for the twelve months ended December 31, 2025 were $513.8 million
compared to $356.9 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. 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 December 31, 2025 were higher than
December 31, 2024 . Allowance for credit losses increased to $3.7 million at December 31, 2025 compared to $3.1 million at
December 31, 2024 .
Capital ratios — Our capital position remains strong. Actual risk-based capital was $8.0 billion at December 31, 2025 compared to
$8.5 billion at December 31, 2024 . Required risk-based capital was $1.1 billion at December 31, 2025 compared to $1.0 billion at
December 31, 2024 . To support $156.5 billion of total assets at December 31, 2025 , the minimum required total capital was $6.3
billion or 4.0% of assets. Our actual regulatory risk-based capital was $8.0 billion , exceeding required total capital by $1.8 billion .
These ratios have remained consistently above the required regulatory ratios through all periods in this report. For more information,
see financial statements, Note 14 . Capital Stock, Mandatorily Redeemable Capital Stock and Restricted Retained Earnings.
Leverage — At December 31, 2025 , balance sheet leverage (based on U.S. GAAP) was 19.5 times shareholders’ equity compared to
19.1 times 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. 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 December 31, 2025
included $32.9 million as demand cash balances at the FRBNY, $27.5 billion in short-term and overnight investments in the federal
funds and resale agreements, and $10.1 billion of high credit quality GSE-issued available-for-sale securities that are investment grade
and readily marketable.
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 9.1 through Table 9.5 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 has enhanced its credit oversight and credit rating methodology to assess the financial condition of member institutions. The
Framework updates were initially implemented in the third quarter of 2025 .
The FHLBNY utilizes a new 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 is also in alignment with the Federal Housing Finance Agency’s observations contained in its
November 2023 report entitled, “FHLBank System at 100: Focusing on the Future” (System at 100 Report) and feedback received
from periodic discussions with our regulator. Appendix 5 of the System at 100 Report suggests there be 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. Federal Housing Finance Agency Advisory Bulletin AB 2024-03, published September 27, 2024, also provides guidance
concerning credit underwriting.
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 $92.3 billion at December 31, 2025 and $105.8 billion at December 31, 2024 . Carrying
values included cumulative hedging basis adjustment losses of $0.1 billion at December 31, 2025 and $0.7 billion at December 31,
Table 3.1 Advance Trends
(in billions)
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.
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, stated 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 is initiating 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 3.2 Advances by Product Type
December 31, 2025
December 31, 2024
Amounts
Percentage
of Total
Amounts
Percentage
of Total
Adjustable Rate Credit - ARCs
Fixed Rate Advances
Short-Term Advances
Mortgage Matched Advances
Overnight & Line of Credit (OLOC) Advances
All other categories
Total par value
Advance discounts
Hedge valuation basis adjustments
Total
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 3.3 Collateral Supporting Indebtedness to Members
Indebtedness
Collateral (a)
Advances (b)
Other
Obligations (c)
Total
Indebtedness
Loans (d)
Securities and
Deposits (d)
Total (d)
December 31, 2025
December 31, 2024
(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 3.4 Location of Collateral Held
Estimated Market Values
Collateral in
Physical
Possession
Collateral
Specifically Listed
Total Collateral
Received
December 31, 2025
December 31, 2024
Advances — Interest Rate Terms
The following table summarizes interest-rate payment terms for advances (dollars in thousands):
Table 3.5 Advances by Interest-Rate Payment Terms
December 31, 2025
December 31, 2024
Amounts
Percentage
of Total
Amounts
Percentage
of Total
Fixed-rate (a)
Variable-rate (b)
Total par value
Advance discounts
Hedge valuation basis adjustments
Total
(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 December 31, 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 3.6 Advances by Redemption Term
December 31, 2025
December 31, 2024
Change
Redemption Term (dollars in thousands)
Amount
Percentage
Amount
Percentage
Amount
Percentage
Fixed-rate
Due in 1 year or less
Due after 1 year through 3 years
Due after 3 years through 5 years
Due after 5 years through 15 years
Total principal amount
Fixed-rate, putable
Due in 1 year or less
Due after 1 year through 3 years
Due after 3 years through 5 years
Due after 5 years through 15 years
Total principal amount
Variable-rate
Due in 1 year or less
Due after 1 year through 3 years
Due after 3 years through 5 years
Due after 5 years through 15 years
Total principal amount
Other (a)
Due in 1 year or less
Due after 1 year through 3 years
Due after 3 years through 5 years
Due after 5 years through 15 years
Total principal amount
Total principal amount advances
Other adjustments, net (b)
Total advances
(a) Includes hybrid, fixed-rate amortizing/mortgage matched, convertible, fixed-rate callable or prepayable, and other advances.
(b) Consists of hedging and fair value option valuation 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 3.7 Hedged Advances by Type
Par Amount
December 31, 2025
December 31, 2024
Qualifying hedges
Fixed-rate bullets (a)
Fixed-rate putable (b)
Fixed-rate with embedded cap
Total qualifying hedges
Aggregate par amount of advances hedged (c)
Fair value basis (hedging adjustments) (d)
(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 December 31, 2025 and
December 31, 2024 , there was 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 3.8 Putable and Callable Advances
Advances
Par Amount
December 31, 2025
December 31, 2024
Putable (a)
No-longer putable/callable
(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. Investments include a small portfolio of MBS issued by private enterprises, and bonds issued by state or local housing
finance agencies. 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 4.1 Investments by Categories
December 31,
December 31,
Dollar
Variance
Percentage
Variance
State and local housing finance agency obligations, net (a)
Available-for-sale securities, at fair value
Held-to-maturity securities, at carrying value, net
Total HFA securities
U.S. Treasury notes, available-for-sale at fair value
Trading securities (b)
Mortgage-backed securities
Available-for-sale securities, at fair value (c)
Held-to-maturity securities, at carrying value, net (c)
Total MBS securities
Equity investments in Grantor trusts (d)
Interest-bearing deposits
Securities purchased under agreements to resell
Federal funds sold
Total Investments
(a) State and local housing finance agency bonds are designated as both AFS, carried at fair values and HTM, carried at carrying
value. There were purchases of $375.0 million of AFS State and local housing finance agency bonds for the twelve months ending
December 31, 2025 . Payments from HTM portfolio were $7.5 million and payments from the AFS portfolio were $7.2 million .
(b) Trading securities comprised of U.S. Treasury securities at December 31, 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 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 4.2 Investment Debt Securities Issuer Concentration
December 31, 2025
December 31, 2024
Long Term Investment (c)
Carrying (a)
Value
Fair value
Carrying value
as a Percentage
of Capital
Carrying (a)
Value
Fair Value
Carrying value
as a Percentage
of Capital
MBS
Fannie Mae
Freddie Mac
Ginnie Mae
All Others - PLMBS (d)
Non-MBS, net (b)
Total Investment Debt Securities
Categorized as:
Available-for-Sale Securities
Held-to-Maturity Securities,
net
(a) Carrying values include fair values for AFS securities.
(b) Non-MBS — Includes Housing finance agency bonds.
(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 4.3 External Rating of the Held-to-Maturity Portfolio
December 31, 2025
AAA-rated (a)
AA-rated (b)
A-rated
BBB-rated
Below
Investment
Grade
Total
Mortgage-backed securities
State and local housing finance agency obligations
Total Long-term securities
December 31, 2024
AAA-rated (a)
AA-rated (b)
A-rated
BBB-rated
Below
Investment
Grade
Total
Mortgage-backed securities
State and local housing finance agency obligations
Total Long-term securities
See footnotes (a) and (b) under Table 4.4 .
The following tables summarize external rating information of the AFS portfolio (the carrying values of AFS investments are at fair
values; in thousands):
Table 4.4 External Rating of the Available-for-Sale Portfolio
December 31, 2025
AAA-rated (a)
AA-rated (b)
A-rated
BBB-rated
Below
Investment
Grade
Total
Mortgage-backed securities
Housing and U.S. Obligations
Total Long-term securities
December 31, 2024
AAA-rated (a)
AA-rated (b)
A-rated
BBB-rated
Below
Investment
Grade
Total
Mortgage-backed securities
Housing and U.S. Obligations
Total Long-term securities
Footnotes to Table 4.3 and Table 4.4 .
(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; Moody’s debt rating is Aaa for the GSE Senior long-term debt and the U.S.
government.
External credit rating information has been provided in Table 4.3 and Table 4.4 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 4.5 Mortgage-Backed Securities Weighted Average Rates by Contractual Maturities
December 31, 2025
December 31, 2024
Amortized
Cost
Weighted
Average Rate (a)
Amortized
Cost
Weighted
Average Rate (a)
Mortgage-backed securities
Due in one year or less
Due after one year through five years
Due after five years through ten years
Due after ten years
Total Mortgage-backed securities
(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 SOFR.
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 4.6 Fair Value Hedges of Fixed-Rate Prepayable CMBS
Fair Value Hedges of Fixed-
Rate Prepayable CMBS
December 31, 2025
December 31, 2024
Current face value of hedged CMBS
Partial-term hedge face value of hedged CMBS
Cumulative basis adjustment gains (losses) (a)
Interest rate swap contracts (par)
(a) Cumulative basis adjustment gains (losses) at December 31, 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 $16.0 billion at
December 31, 2025 and $10.9 billion at December 31, 2024 . Resale agreements averaged $7.5 billion and $4.8 billion in 2025 and
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 $11.6 billion at December 31, 2025 and $9.4 billion at December 31, 2024 and averaged
$17.2 billion and $19.4 billion in 2025 and 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 table below presents federal funds sold, the counterparty credit ratings, and the domicile of the counterparty or the domicile of the
counterparty’s parent for U.S. branches and agency offices of foreign commercial banks in the U.S. (in thousands):
Table 4.7 Federal Funds Sold by Domicile of the Counterparty (a )
December 31, 2025
December 31, 2024
Year ended December 31,2025
Year ended December 31, 2024
Foreign
Counterparties
S&P Rating
Moody’s
Rating
S&P Rating
Moody’s
Rating
Daily Average
Balance
Balance at
period end
Daily Average
Balance
Balance at
period end
Australia
Austria
Canada
Finland
France
Germany
Netherlands
Norway
Sweden
Subtotal
USA
BBB+ to AA-
BAA1 to AA1
BBB+ to AA-
BAA1 to AA1
Total
(a) Average investment in federal funds sold has typically been greater than the period-end balance as counterparties have less
demand at year-end than during the year.
The following table summarizes par value, amortized cost and the carrying value (fair value) of the trading portfolio (in thousands):
Table 4.8 Trading Securities
Trading Securities
December 31, 2025
December 31, 2024
Par value
Amortized cost
Carrying/Fair value
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 4.9 Economic Hedges of Fixed-rate Liquidity Trading Securities
Economic Hedges of Fixed-Rate
Trading Securities
December 31, 2025
December 31, 2024
Par/Face amounts of portfolio of U.S. Treasury fixed-rate securities (a)
Par amounts of interest rate swaps
(a) Balances represent outstanding amounts of U.S. Treasury securities.
Mortgage Loans Held-for-Portfolio, Net
Mortgage loans are carried in the Statements of Condition at amortized cost, less allowance for credit losses. The outstanding unpaid
principal balance was $2.6 billion at December 31, 2025 , an increase of $288.9 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
$513.8 million of mortgage loans from members and paydowns were $210.1 million . Mortgage loans were investments in MPF and
MAP. Serious delinquencies at December 31, 2025 were lower than December 31, 2024 . Allowance for credit losses was $3.7 million
at December 31, 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 5.1 Mortgage Loans by Conventional and Insured Loans
December 31, 2025
December 31, 2024
Federal Housing Administration and Veteran Administration insured loans
Conventional loans
Allowance for credit losses on mortgage loans
Total mortgage loans held-for-portfolio, net
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. An overall decline in the economy, residential real estate market, or an occurrence of a natural disaster could
adversely affect the value of the mortgage loans in a concentrated region. The tables below summarize concentrations — Geographic
and PFI.
Table 5.2 Geographic Concentration of Mortgage Loans
December 31, 2025
December 31, 2024
Number of loans %
Amounts outstanding %
Number of loans %
Amounts outstanding %
New York State
New Jersey State
Table 5.3 Top Five Participating Financial Institutions — Concentration (par value, dollars in thousands) :
December 31, 2025
Mortgage
Loans
Percent of Total
Mortgage Loans
OceanFirst Bank
The Lyons National Bank
Teachers Federal Credit Union
Manasquan Bank
FourLeaf Federal Credit Union (a)
All Others
Total (b)
December 31, 2024
Mortgage
Loans
Percent of Total
Mortgage Loans
Bethpage Federal Credit Union
Teachers Federal Credit Union
OceanFirst Bank
The Lyons National Bank
Flagstar Bank, N.A.
All Others
Total (b)
(a) Effective March 3, 2025, Bethpage Federal Credit Union was renamed to FourLeaf Federal Credit Union.
(b) Includes MPF unpaid principal balances of $1.4 billion as of December 31, 2025 and $1.6 billion as of December 31, 2024 and
MAP unpaid principal balances of $1.2 billion as of December 31, 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 $144.5 billion and $148.4 billion at December 31, 2025 and December 31, 2024 ,
respectively.
CO bonds and CO discount notes — The carrying value of Consolidated obligation bonds was $68.5 billion (par, $68.4 billion ) at
December 31, 2025 , compared to $80.6 billion (par, $81.1 billion ) at December 31, 2024 . The carrying value of Consolidated
obligation discount notes outstanding was $76.0 billion at December 31, 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 6.1 CO Bonds by Type.
From time to time, we hedge CO discount notes under ASC 815 fair value accounting; additionally, certain discount notes are also
hedged under ASC 815 cash flow accounting hedge. Certain discount notes were elected under the FVO. As a result of accounting
elections, carrying values of discount notes may include valuation basis adjustments. For more information about valuation basis
adjustments on discount notes, see Table 6.7 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, 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.
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
$29.2 billion at December 31, 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 6.1 CO Bonds by Type
December 31, 2025
December 31, 2024
Amount
Percentage
of Total
Amount
Percentage
of Total
Fixed-rate, non-callable
Fixed-rate, callable
Step Up, callable
Step Down, callable
Floating rate, callable
Single-index floating rate
Total par value
Bond premiums
Bond discounts
Hedge valuation basis adjustments (a)
Hedge basis adjustments on de-designated hedges (b)
FVO (c) - valuation adjustments and accrued interest
Total Consolidated obligation bonds
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 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 6.2 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 December 31, 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 through 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 6.3 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 6.2 – 6.4 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 6.2 CO Bonds Hedged under Qualifying Fair Value Hedges
Consolidated Obligation Bonds
Par Amount
December 31, 2025
December 31, 2024
Qualifying hedges
Fixed-rate bullet bonds
Fixed-rate callable bonds
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 6.3 CO Bonds Elected under the Fair Value Option (FVO)
Consolidated Obligation Bonds
Par Amount
December 31, 2025
December 31, 2024
Bonds designated under FVO
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 6.4 Economic Hedges of CO Bonds (data in table excludes CO bonds elected under the FVO)
Consolidated Obligation Bonds
Par Amount
December 31, 2025
December 31, 2024
Bonds designated as economically hedged (a)
Fixed-rate bonds (b)
(a) At December 31, 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
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 6.5 CO Bonds — Maturity or Next Call Date
December 31, 2025
December 31, 2024
Amount
Percentage of
Total
Amount
Percentage of
Total
Year of maturity or next call date (a)
Due or callable in one year or less
Due or callable after one year through two years
Due or callable after two years through three years
Due or callable after three years through four years
Due or callable after four years through five years
Thereafter
Total par value
(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 6.6 Outstanding Callable CO Bonds versus Non-callable CO bonds
December 31, 2025
December 31, 2024
Callable
Non-Callable
CO Discount Notes
The following table summarizes discount notes issued and outstanding (dollars in thousands):
Table 6.7 Discount Notes Outstanding
December 31, 2025
December 31, 2024
Par value
Amortized cost
Hedge value basis adjustments (a)
Hedge basis adjustments on de-designated hedges (b)
FVO (c) - valuation adjustments and remaining accretion
Total Consolidated obligation discount notes
Weighted average interest rate
(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 $69.8 billion and
$56.3 billion were hedged under ASC 815 qualifying fair value hedges at December 31, 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 6.8 Fair Value Hedges of Discount Notes
Consolidated Obligation Discount Notes
Principal Amount
December 31, 2025
December 31, 2024
Discount notes hedged under qualifying hedge
The following table summarizes economic hedges of discount notes (in thousands):
Table 6.9 Economic Hedges of Discount Notes
Consolidated Obligation Discount Notes
Par Amount
December 31, 2025
December 31, 2024
Discount notes designated as economic hedges (a)
(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 6.10 Discount Notes under the Fair Value Option (FVO)
Consolidated Obligation Discount Notes
Par Amount
December 31, 2025
Discount notes designated under FVO
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 6.11 Cash Flow Hedges of Discount Notes
Consolidated Obligation Discount Notes
Principal Amount
December 31, 2025
December 31, 2024
Discount notes hedged under qualifying hedge (a)
(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.
Recent Rating Actions
Table 6.12 below presents FHLBank’s long-term credit rating, short-term credit rating and outlook at February 28, 2026 .
Table 6.12 FHLBNY Ratings
Moody’s
Long-Term/ Short-Term
Long-Term/ Short-Term
Year
Rating
Outlook
Rating
Outlook
February 28, 2026
Stable/Affirmed
February 28, 2026
Stable/Affirmed
February 28, 2025
Stable/Affirmed
February 28, 2025
AAA/P-1
Negative/Affirmed
February 29, 2024
Stable/Affirmed
February 29, 2024
AAA/P-1
Negative/Affirmed
Accrued interest payable
Accrued interest payable — Amounts outstanding were $470.3 million at December 31, 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 $167.6 million at December 31, 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 7.1 Stockholders’ Capital
December 31, 2025
December 31, 2024
Capital Stock (a)
Unrestricted retained earnings (b)
Restricted retained earnings (c)
Total accumulated other comprehensive income (loss)
Total Capital
(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 December 31, 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
December 31, 2025 was $1.4 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 December 31, 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 7.2 Accumulated Other Comprehensive Income (Loss) (AOCI)
December 31, 2025
December 31, 2024
Accumulated other comprehensive income (loss)
Non-credit portion on held-to-maturity securities, net (a)
Net market value unrealized gains (losses) on available-for-sale securities (b)
Net Fair value hedging gains (losses) on available-for-sale securities (b)
Net Cash flow hedging gains (losses) (c)
Employee supplemental retirement plans (d)
Total Accumulated other comprehensive income (loss)
(a) Represents cumulative unamortized non-credit losses. Balances in AOCI have declined due to accretion recorded as a reduction
in AOCI and a corresponding increase in the balance sheet carrying values of the impaired securities.
(b) Net market value unrealized losses of $395.4 million at December 31, 2025 and net unrealized losses of $800.3 million at
December 31, 2024 , represented third-party pricing vendors’ market-based unrealized gains/losses of securities designated as
AFS. Net unrealized gains of $363.9 million and $634.7 million included immaterial balances of unamortized basis as a result of
de-designation hedges at December 31, 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 7.3
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 7.3 AOCI Roll forward due to ASC 815 Hedging Programs
December 31, 2025
Cash Flow Hedges
Fair Value Hedges
Rollover Hedge
Program
Anticipatory Hedge
Program
AFS Securities
Beginning balance
Changes in fair values (a)
Amount reclassified
Fair Value - closed contract
Ending balance
Notional amount of swaps outstanding
December 31, 2024
Cash Flow Hedges
Fair Value Hedges
Rollover Hedge
Program
Anticipatory Hedge
Program
AFS Securities
Beginning balance
Changes in fair values (a)
Amount reclassified
Fair Value - closed contract
Ending balance
Notional amount of swaps outstanding
December 31, 2023
Cash Flow Hedges
Fair Value Hedges
Rollover Hedge
Program
Anticipatory Hedge
Program
AFS Securities
Beginning balance
Changes in fair values (a)
Amount reclassified
Fair Value - closed contract
Ending balance
Notional amount of swaps outstanding
(a) Represents fair value changes of open swap contracts in cash flow hedges. 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 7.4 Dividends Paid and Payout Ratios
Twelve months ended
December 31,
December 31,
Cash dividends paid per share
Dividends paid (a)(c)
Pay-out ratio (b)
(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.
The following tables summarize the principal derivatives hedging strategies outstanding as of December 31, 2025 and December 31,
Table 8.1 Derivative Hedging Strategies — Advances
December 31, 2025
December 31, 2024
Hedged Item / Hedging Instrument
Hedging Objective
Hedge
Designation
Notional Amount
(in millions)
Notional Amount
(in millions)
Pay-fixed, receive float interest rate swap
(without options)
Converts the advance’s fixed rate to a variable-rate index.
Fair Value
Economic
Pay-fixed, receive float interest rate swap (with
options)
Converts the advance’s fixed rate to a variable-rate index and
offsets option risk in the advance.
Fair Value
Pay-fixed with embedded features, receive-
float interest-rate swap (non-callable)
Reduces interest-rate sensitivity and repricing gaps by
converting the advance’s fixed rate to a variable-rate index and/
or offsets embedded option risk in the advance.
Fair Value
Table 8.2 Derivative Hedging Strategies — Investments
December 31, 2025
December 31, 2024
Hedged Item / Hedging Instrument
Hedging Objective
Hedge
Designation
Notional Amount
(in millions)
Notional Amount
(in millions)
Pay-fixed, receive float interest-rate swap
Converts the investment’s fixed rate to a variable-rate index.
Fair Value
Economic
Table 8.3 Derivative Hedging Strategies — Consolidated Obligation Bonds
December 31, 2025
December 31, 2024
Hedged Item / Hedging Instrument
Hedging Objective
Hedge
Designation
Notional Amount
(in millions)
Notional Amount
(in millions)
Receive-fixed or -structured, pay float interest
rate swap (without options)
Converts the bond’s fixed or structured rate to a variable-rate
index.
Fair Value
Economic
Receive-fixed or -structured, pay float interest
rate swap (with options)
Converts the bond’s fixed- or structured-rate to a variable-rate
index and offsets option risk in the bond.
Fair Value
Economic
Table 8.4 Derivative Hedging Strategies — Consolidated Obligation Discount Notes
December 31, 2025
December 31, 2024
Hedged Item / Hedging Instrument
Hedging Objective
Hedge
Designation
Notional Amount
(in millions)
Notional Amount
(in millions)
Receive-fixed, pay float interest-rate swap
Converts the discount note’s fixed rate to a variable-rate index.
Fair Value
Economic
Pay-fixed, receive float interest-rate swap
Hedging sequential issuance of discount notes to reduce interest-
rate sensitivity.
Cash Flow
Table 8.5 Derivative Hedging Strategies — Balance Sheet
December 31, 2025
December 31, 2024
Hedged Item / Hedging Instrument
Hedging Objective
Hedge
Designation
Notional Amount
(in millions)
Notional Amount
(in millions)
Pay-float, receive-fixed interest-rate swap
Interest-rate swap not linked to specific assets, liabilities or
forecasted transactions.
Economic
Pay-fixed, receive-float interest-rate swap
Interest-rate swap not linked to specific assets, liabilities or
forecasted transactions.
Economic
Interest-rate cap or floor
Protects against changes in income of certain assets due to
changes in interest rates.
Economic
Table 8.6 Derivative Hedging Strategies — Stand-Alone
December 31, 2025
December 31, 2024
Hedged Item / Hedging Instrument
Hedging Objective
Hedge
Designation
Notional Amount
(in millions)
Notional Amount
(in millions)
Mortgage delivery commitment
Exposed to fair-value risk associated with fixed-rate mortgage
purchase commitments.
Economic
Derivative Credit Risk Exposure and Concentration
In addition to market risk, we are subject to credit risk in derivative transactions because of the potential for non-performance by the
counterparties, which could result in the FHLBNY having to acquire a replacement derivative from a different counterparty at a cost
that may exceed its recorded fair values. We are also subject to operational risks in the execution and servicing of derivative
transactions. The degree of counterparty credit risk may depend on, among other factors, the extent to which netting procedures and/or
the provision of collateral are used to mitigate the risk. Summarized below are our risk measurement and mitigation processes:
Risk measurement — We estimate exposure to credit loss on derivative instruments by calculating the replacement cost, on a present
value basis, to settle at current market prices all outstanding derivative contracts in a gain position, net of collateral pledged by the
counterparty. All derivative contracts with non-members are also subject to master netting agreements or other right of offset
arrangements.
Exposure — In determining credit risk, we consider accrued interest receivable and payable, and the legal right to offset assets and
liabilities by counterparty. We attempt to mitigate exposure by requiring derivative counterparties to pledge cash collateral if the
amount of exposure is above the collateral threshold agreements. When we post excess cash collateral, we consider the excess
collateral as our derivative exposure.
Our credit exposures (derivatives in a net gain position) were to highly rated counterparties and Derivative Clearing Organizations
(DCO) that met our credit quality standards. Our exposures also included open derivative contracts executed on behalf of member
institutions, and the exposures were collateralized under standard advance collateral agreements with our members. For such
transactions, acting as an intermediary, we offset the transaction by purchasing equivalent notional amounts of derivatives from
unrelated derivative counterparties.
Risk mitigation — We attempt to mitigate derivative counterparty credit risk by contracting only with experienced counterparties
with investment-quality credit ratings that meet our credit quality standards. Annually, our management and Board of Directors review
and approve all non-member derivative counterparties. We monitor counterparties on an ongoing basis for significant business events,
including ratings actions taken by a Nationally Recognized Statistical Rating Organization (NRSRO). All approved derivatives
counterparties must enter into a master ISDA agreement with us before we execute a trade through that counterparty. In addition, for
all bilateral OTC derivatives, we have executed the Credit Support Annex to the ISDA agreement that provides for collateral support
at predetermined thresholds. For Cleared-OTC derivatives, margin requirements are mandated under the Dodd-Frank Act. We believe
that such arrangements — margin requirements, the selection of experienced, highly-rated counterparties and ongoing monitoring —
have sufficiently mitigated our exposures, and we do not anticipate any credit losses on derivative contracts.
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 8.7 Derivatives Counterparty Credit Ratings
December 31, 2025
Credit Rating
Notional Amount
Net Derivatives
Fair Value
Before
Collateral
Cash Collateral
Pledged To (From)
Counterparties (a)
Balance Sheet Net
Credit Exposure
Non-
Cash Collateral
Pledged To (From)
Counterparties (b)
Net Credit
Exposure to
Counterparties
Non-member counterparties
Asset positions with credit
exposure
Uncleared derivatives
Single A asset (c)
Cleared derivatives assets (d)
Liability positions with credit
exposure
Uncleared derivatives
Single A liability (c)
Cleared derivatives liability (d)
Total derivative positions with
non-member counterparties
to which the Bank had
credit exposure
Delivery commitments
Derivative position with
delivery commitments
Total derivative position with
members
Total
Derivative positions without
credit exposure
Total notional
December 31, 2024
Credit Rating
Notional Amount
Net Derivatives
Fair Value
Before
Collateral
Cash Collateral
Pledged To (From)
Counterparties (a)
Balance Sheet Net
Credit Exposure
Non-
Cash Collateral
Pledged To (From)
Counterparties (b)
Net Credit
Exposure to
Counterparties
Non-member counterparties
Asset positions with credit
exposure
Uncleared derivatives
Double A asset (c)
Single A asset (c)
Cleared derivatives assets (d)
Liability positions with credit
exposure
Uncleared derivatives
Single A liability (c)
Triple B liability (c)
Cleared derivatives liability (d)
Total derivative positions with
non-member counterparties to
which the Bank had credit
exposure
Delivery commitments
Derivative position with
delivery commitments
Total derivative position with
members
Total
Derivative positions without
credit exposure
Total notional
(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 $845.6 million and $803.0 million in marketable securities as collateral at
December 31, 2025 and December 31, 2024 , respectively. At December 31, 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 9.1 Deposit Liquidity
For the Quarters Ended
Average Deposit
Reserve Required
Average Actual
Deposit Liquidity
Excess
December 31, 2025
September 30, 2025
June 30, 2025
March 31, 2025
December 31, 2024
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 9.2 Operational Liquidity
For the Quarters Ended
Average Balance Sheet
Liquidity Requirement
Average Actual
Operational Liquidity
Excess
December 31, 2025
September 30, 2025
June 30, 2025
March 31, 2025
December 31, 2024
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 9.3 Contingency Liquidity
For the Quarters Ended
Average Five Day
Requirement
Average Actual
Contingency Liquidity
Excess
December 31, 2025
September 30, 2025
June 30, 2025
March 31, 2025
December 31, 2024
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 $38.2 million at December 31, 2025 and $26.1 million at December 31, 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 $0.7 billion in net cash outflows in the twelve months ended December 31, 2025 , compared to net cash
inflows of $1.1 billion in 2024 . Period changes in cash flows provided by or used in operating activities were largely driven by: (a)
Net income was $599.8 million in the twelve months ended December 31, 2025 and $738.5 million in 2024 ; (b) Net cash outflows
from Derivatives and hedging activities were $631.0 million in the twelve months ended December 31, 2025 , compared to net cash
inflows of $39.5 million in 2024 ; and (c) Negative adjustments to operating cash flows of $137.9 million to recognize unrealized
valuation gains on U.S. Treasury securities at December 31, 2025 , compared to negative adjustments of $26.0 million to recognize
unrealized valuation gains on U.S. Treasury securities in 2024 .
Cash flows provided by/(used in) investing activities — Investing activities resulted in $5.2 billion in net cash inflows in the twelve
months ended December 31, 2025 compared to $1.5 billion in net cash outflows in 2024 . In the twelve months ended December 31,
2025 , we acquired $3.4 billion in Treasury securities compared to $2.0 billion in 2024 . We did not make any repayments from
Treasury securities in twelve months ended December 31, 2025 and in 2024 . Net cash outflows from Securities purchased under
agreements to resell were $5.1 billion in the twelve months ended December 31, 2025 compared to net cash outflows of $3.1 billion in
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 $ $4.5 billion in the twelve months
ended December 31, 2025 compared to net cash inflows of $0.3 billion in 2024 .
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.
Purchases of MBS . Finance Agency investment regulations limit the purchase of mortgage-backed securities to 300% of capital. We
were in compliance with the regulation at all times.
Table 9.4 FHFA MBS Limits
December 31, 2025
December 31, 2024
Actual
Limits
Actual
Limits
Mortgage securities investment authority
The Finance Agency has established a ratio by which the Finance Agency will assess each FHLBank’s core mission achievement.
Core mission achievement is determined using a ratio of primary mission assets, which include advances and acquired member assets
(mortgage loans acquired from members), to Consolidated obligations. The ratio will be determined at each year-end and will be
calculated using annual average par values.
Table 9.5 Core Mission Achievement
Par Values (dollars in thousands)
December 31, 2025
Annual Average
December 31, 2024
Annual Average
Advances
Mortgage Loans
Total Primary Mission Assets
Total Consolidated Obligations
U.S. Treasury obligations qualifying as HQLA under AB 2018-07 (a)
Core Mission Achievement Ratio
Target Ratio
(a) The annual average par value of the U.S. Treasury Securities that are held as Trading securities is deducted from the
denominator of the Primary Core Mission Asset ratio, as allowed under the FHFA guidelines.
Operational Risk Management
Operational risk is the risk of loss resulting from inadequate or failed internal processes, systems, or human factors, or from external
events. Operational risk is inherent in our business activities and, as with other risk types, is managed through an overall framework
designed to balance strong management oversight with well-defined independent risk management. This framework includes: policies
and procedures for managing operational risks; recognized ownership of the risk by the business; a compliance group that evaluates
compliance with board and regulatory policies, including the evaluation and reporting of operational risk incidents, which are
regularly reported directly to the Audit Committee of the Bank’s Board of Directors regarding compliance with policies and
procedures, including those related to managing operational risks.
Information Security and Business Continuity . The Bank has an Information Security Department that is responsible for the policy,
procedures, reviews, education, and management of the information security program. The Bank also has a department that is
responsible for the overall business continuity program, which includes training, testing, coordination, and continual updates.
Information security and the protection of confidential customer data, and business continuity are priorities for the FHLBNY, and we
have implemented processes that will help secure confidential data and continuity of operations. The information security program is
reviewed and enhanced periodically to address emerging threats to data integrity and cyberattacks. The business continuity program
includes annual testing of our capabilities. Results of business continuity testing and information security are routinely presented to
senior management of the FHLBNY and its Board of Directors.
The FHLBNY’s Information Technology group maintains and regularly reviews controls to ensure that technology assets are well
managed and secure from unauthorized access and in accordance with approved policies and procedures.
Results of Operations
The following section provides a comparative discussion of the FHLBNY’s results of operations for the three years ended
December 31, 2025 , 2024 and 2023 . 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 10.1 Principal Components of Net Income
Years ended December 31,
Total interest income
Total interest expense
Net interest income before provision for credit losses
Provision (Reversal) for credit losses
Net interest income after provision for credit losses
Total other income (loss)
Total other expenses
Income before assessments
Affordable Housing Program Assessments
Net income
Net Income — 2025 Compared to 2024
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 was $599.8 million , a decrease of $138.7 million , or 18.8% compared to 2024 . Summarized below are the
primary components of our net income:
Net interest income — The 2025 net interest income was $851.8 million , a decrease o f $135.0 million , or 13.7% compared to 2024 .
Net interest spread was 31 basis points for 2025 compared to 30 basis points in 2024 . For more information, see Table 9.2 Net Interest
Income and accompanying discussions in this MD&A.
• Provision (Reversal) for credit losses for 2025 was a provision of $0.1 million and compared to a reversal of $0.2 million for
Other income (loss) — Other income (loss) reported a gain of $103.1 million in the 2025 compared to a gain of $112.6 million in the
• Service fees and other were $22.2 million in the 2025 compared to $21.5 million reported in 2024 . Service fees and other
are primarily fee revenues from financial letters of credit.
• Financial instruments carried at fair values reported net valuation losses of $47.3 million in 2025 compared to net losses
of $72.3 million in 2024 . For more information, see financial statements, Fair Value Option Disclosures in Note 18 . Fair
Values of Financial Instruments. Also see Table 10.9 Other Income (Loss) and accompanying discussions in this MD&A.
• Derivative activities reported net losses of $21.7 million in Other income in 2025 , compared to net gains of $127.6 million
in 2024 . For more information, see Table 10.11 Other Income (Loss) — Impact of Derivative Gains and Losses and
accompanying discussions in this MD&A.
• U.S. Treasury Securities held for liquidity (classified as trading) reported net fair value gains of $137.9 million in 2025
compared to net fair value gains of $26.0 million in 2024 .
• Equity Investments held to finance payments to retirees in a non-qualified pension plan, reported net fair value gains of
$11.9 million in 2025 compared to net gains of $9.6 million in 2024 .
Other expenses were $288.3 million in 2025 compared to $279.0 million in 2024 . 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 $95.5 million in 2025 , down slightly from $95.6 million in 2024 .
• Compensation and benefits expenses were $123.9 million in 2025 compared to $114.7 million in 2024 .
• Voluntary contributions were $37.3 million in 2025 compared to $38.0 million in 2024 for various housing programs, grants,
charitable contributions, and a voluntary contribution to AHP. These voluntary contributions are in excess of the Bank’s
statutory requirement. The slight decrease was driven by lower net income in 2024 compared to 2023. The FHLBNY
committed to contribute an additional 5% of 2024 pre-assessment net income as voluntary contributions during 2025 .
• The expenses allocated for our share of the costs to operate the Office of Finance and the Federal Housing Finance Agency
were $23.4 million in 2025 compared to $22.5 million in 2024 .
• Other expenses were $8.1 million in the 2025 , slightly down from $8.2 million in 2024 .
Affordable Housing Program Assessments (AHP) allocated from net income were $66.7 million in 2025 compared to $82.1 million
in 2024 . Assessments are calculated as a percentage of net income, and changes in allocations were in tandem with changes in net
income.
Net Income — 2024 Compared to 2023
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 2024 was $738.5 million , a decrease of $12.6 million , or 1.7% compared to 2023 . Summarized below are the primary
components of our net income:
Net interest income — The 2024 interest income wa s $986.8 million , a decrease of $8.5 million , or 0.9% compared to 2023 . Net
interest spread was 30 basis points for 2024 compared to 33 basis points for 2023 . For more information, see Table 10.2 Net Interest
Income and accompanying discussions in this MD&A.
• Provision (Reversal) for credit losses for 2024 was a reversal of $0.2 million compared to a provision of $1.7 million for
Other income (loss) — Other income (loss) reported a gain of $112.6 million in 2024 compared to a gain of $77.1 million in 2023 .
• Service fees and other were $21.5 million in 2024 compared to $21.2 million reported in 2023 . Service fees and other are
primarily fee revenues from financial letters of credit.
• Financial instruments carried at fair values reported net valuation losses of $72.3 million in 2024 compared to net losses
of $99.2 million in 2023 . For more information, see financial statements, Fair Value Option Disclosures in Note 18 . Fair
Values of Financial Instruments. Also see Table 10.9 Other Income (Loss) and accompanying discussions in this MD&A.
• Derivative activities reported net gains of $127.6 million in Other income in 2024 , compared to net gains of $30.9 million in
2023 . For more information, see Table 10.11 Other Income (Loss) — Impact of Derivative Gains and Losses and
accompanying discussions in this MD&A.
• U.S. Treasury Securities held for liquidity (classified as trading) reported net fair value gains of $26.0 million in 2024
compared to net fair value gains of $110.5 million in 2023 .
• Equity Investments held to finance payments to retirees in a non-qualified pension plan, reported net fair value gains of $9.6
million in 2024 compared to net gains of $12.1 million in 2023 .
• Gains (losses) from extinguishment of debt reported de minimis gains from debt transfers (par amount $5.8 billion) to other
FHLB in 2024.
Other expenses were $279.0 million in 2024 compared to $236.1 million in 2023 . Other expenses are primarily operating expenses,
compensation and benefits, and our share of expenses of the Office of Finance and the Federal Housing Finance Agency, and
voluntary contributions.
• Operating expenses were $95.6 million in 2024 , up from $85.1 million in 2023 primarily due to investment in technology.
• Compensation and benefits expenses were $114.7 million in 2024 compared to $102.6 million in 2023 due to increase in
headcount.
• Voluntary contributions were $38.0 million in 2024 compared to $20.9 million in 2023 for various housing programs, grants,
charitable contributions, and a voluntary contribution to AHP. These voluntary contributions are in excess of the Bank's
statutory requirement. The increase was primarily driven by an increase in voluntary contributions of $17.2 million in 2024.
The FHLBNY committed to contribute an additional 5% of 2023 pre-assessment net income as voluntary contributions
during 2024.
• The expenses allocated for our share of the costs to operate the Office of Finance and the Federal Housing Finance Agency
were $22.5 million in 2024 compared to $20.4 million in 2023 .
• Other expenses were $ 8.2 million in 2024 , slightly up from $ 7.2 million in 2023 .
Affordable Housing Program Assessments (AHP) allocated from net income were $ 82.1 million in 2024 compared to $ 83.5 million
in 2023 . Assessments are calculated as a percentage of net income, and changes in allocations were in tandem with changes in net
income.
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 10.3 Net Interest Adjustments from Qualifying Hedge Interest Rate Swaps and discussions thereto.
Also, see Table 10.4 Spread and Yield Analysis, and Table 10.5 Rate and Volume Analysis.
The following table summarizes net interest income (dollars in thousands):
Table 10.2 Net Interest Income
Percentage
Percentage
Years Ended December 31,
Change
Change
Total interest income (a)
Total interest expense (a)
Net interest income before provision for credit losses
(a) Total Interest Income and Total Interest Expense — See Tables 10.6 and Table 10.8 and accompanying discussions
2025 Net interest income, before loan loss provisions, was $851.8 million , a decrease of $135.0 million , or 13.7% from 2024 . Yield on
assets decreased to 4.49% for 2025 from 5.34% in 2024 while the funding cost decreased to 4.18% for 2025 from 5.04% in 2024 . Net
interest spread increased to 31 basis points in 2025 compared to 30 basis points in 2024 . Net interest margin, a measure of margin
efficiency, which is calculated as net interest income divided by average earning assets, was 53 basis points in 2025 , compared to 59
basis points in 2024 . Prepayment fees of $11.9 million were recorded in net interest income in 2025 compared to $4.2 million in 2024 .
Members’ demand for advances continued to remain stable throughout 2025 as they experienced heightened deposit volatility, strong
loan growth, and the need to enhance liquidity positions.
Stockholders’ capital (as measured by average outstanding balance in the period), which is typically deployed to fund short-term
interest-earning assets, decreased to $8.3 billion in 2025 , down from $8.6 billion in 2024 .
Swap interest settlement designated in ASC 815 hedging of assets and liabilities recorded net income of $34.9 million in 2025
compared to net income of $25.2 million in 2024 . 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 10.3 Net Interest Adjustments from Qualifying Hedge Interest Rate Swaps
Years Ended December 31,
Interest income
Fair value hedging effects
Amortization of basis adjustment
Interest rate swap accruals
Price alignment amount (a)
Reported interest income
Interest expense
Fair value hedging effects
Amortization of basis adjustment
Interest rate swap accruals
Price alignment amount (b)
Reported interest expense
Net interest income
Net interest adjustment - interest rate swaps
(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 $16.8 million expense , $50.4 million expense and $78.9 million expense at December 31,
2025 , 2024 and 2023 , respectively. Price alignment amount in Interest income for AFS debt securities hedged were $19.2 million
expense , $30.4 million expense and $31.6 million expense at December 31, 2025 , 2024 and 2023 , respectively.
(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 $2.8 million expense at December 31, 2025 , $0.5 million income
and $9.9 million income at December 31, 2024 and 2023 . Price alignment amount in Interest expense for consolidated obligation
discount notes hedged were $0.4 million income , $2.4 million income and $0.5 million income at December 31, 2025 , 2024 and 2023 .
Spread and Yield Analysis — 2025 , 2024 and 2023
Table 10.4 Spread and Yield Analysis
Years ended December 31,
(Dollars in thousands)
Average
Balance
Interest
Income/
Expense
Yield/
Rate (a)
Average
Balance
Interest
Income/
Expense
Yield/
Rate (a)
Average
Balance
Interest
Income/
Expense
Yield/
Rate (a)
Earning Assets:
Advances
Interest bearing deposits and others
Securities purchased under agreements
to resell
Federal funds sold
Investments
Trading securities
Mortgage-backed securities
Fixed
Floating
Available-for-sale Treasuries
State and local housing finance
agency obligations
Mortgage loans held-for-portfolio
Loans to other FHLBanks
Total interest-earning assets
Funded By:
Consolidated obligation bonds
Fixed
Floating
Consolidated obligation discount notes
Interest-bearing deposits and other
borrowings
Mandatorily redeemable capital stock
Total interest-bearing liabilities
Other non-interest-bearing funds
Capital
Total Funding
Net Interest Income/Spread
Net Interest Margin
(Net interest income/Earning
Assets)
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 , 2024 and 2023
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 10.5 Rate and Volume Analysis
For the years ended
December 31, 2025 vs. December 31, 2024
Increase (Decrease)
Volume
Rate
Total
Interest Income
Advances
Interest bearing deposits and others
Securities purchased under agreements to resell
Federal funds sold
Investments
Trading securities
Mortgage-backed securities
Fixed
Floating
Available-for-sale Treasuries
State and local housing finance agency obligations
Mortgage loans held-for-portfolio
Loans to other FHLBanks
Total interest income
Interest Expense
Consolidated obligation bonds
Fixed
Floating
Consolidated obligation discount notes
Deposits and borrowings
Mandatorily redeemable capital stock
Total interest expense
Changes in Net Interest Income
For the years ended
December 31, 2024 vs. December 31, 2023
Increase (Decrease)
Volume
Rate
Total
Interest Income
Advances
Interest bearing deposits and others
Securities purchased under agreements to resell
Federal funds sold
Investments
Trading securities
Mortgage-backed securities
Fixed
Floating
State and local housing finance agency obligations
Mortgage loans held-for-portfolio
Loans to other FHLBanks
Total interest income
Interest Expense
Consolidated obligation bonds
Fixed
Floating
Consolidated obligation discount notes
Deposits and borrowings
Mandatorily redeemable capital stock
Total interest expense
Changes in Net Interest Income
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 10.6 Interest Income — Principal Sources
Years Ended December 31,
Percentage
Change
Percentage
Change
Interest Income
Advances
Interest-bearing deposits
Securities purchased under agreements to resell
Federal funds sold
Trading securities
Mortgage-backed securities
Fixed
Floating
Available-for-sale Treasuries
State and local housing finance agency obligations
Mortgage loans held-for-portfolio
Loans to other FHLBanks
Total interest income
NM — Not meaningful.
Interest Income
Interest income in 2025 was $7.2 billion , a decrease of $1.7 billion , or 19.4% compared to 2024 . To provide context, interest expense
decreased by 20.1% compared to 2024 .
For 2025 compared to 2024 , the decrease in interest revenue was due to a volume-related decrease of $0.4 billion and a rate-related
decrease of $1.3 billion . In successive 2025 quarters, we have reported $1.8 billion for first quarter revenue, $1.9 billion for second
quarter revenue, $1.9 billion for third quarter revenue and $1.6 billion for fourth quarter revenue.
Aggregate yield on earning assets in 2025 was 449 basis points, compared to 534 basis points in 2024 .
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 $1.5 billion or 23.8% in 2025 . Advances average balances were $100.5
billion in 2025 compared to $109.4 billion in 2024 . Total advances to members decreased by $13.5 billion or 12.8% to $92.3 billion at
December 31, 2025 . We ended the year 2025 with par advances at $92.5 billion .
As compared to 2024 , lower market interest rates and lower advances average balances resulted in a $1.5 billion decrease on interest
income from advances. In summary, decreasing market interest rates negatively impacted yields from advances, primarily on
overnight and short-term advances and variable-rate advances that reset to lower rates. Advances yielded 467 basis points in 2025 ,
down from 563 basis points in 2024 . Prepayment fees recorded in Interest income from advances were $11.9 million in 2025 , up from
$4.2 million in 2024 .
Table 10.7 Advances Prepayment Fees (in thousands)
Years Ended December 31,
Gross amount of prepayment fees received from advance borrowers
Gross amount of prepayment credits paid to advance borrowers
Hedging fair value adjustments
Other (a)
Total advance prepayment fees, net
(a) Recognition of deferred prepayment fees.
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 interest bearing deposits was due to decrease in market yields in 2025 compared to 2024 . Interest income from federal funds
sold was $0.7 billion , down from $1.0 billion . Federal funds sold yielded 432 basis points in aggregate in 2025 , compared to 523 basis
points in 2024 . Interest income from securities purchased under agreement to resell was $314.4 million , up from $250.5 million .
Average balances were $7.5 billion in 2025 , compared to $4.8 billion in 2024 . Securities purchased under agreement to resell yielded
421 basis points in aggregate in 2025 , compared to 524 basis points in 2024 . Interest income from fixed-rate U.S. Treasury securities
was $238.0 million in 2025 , up from $195.7 million in 2024 due to an increase in average balances and increased interest rates; yields
increased to 316 basis points, compared to 310 basis points in 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.
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 10.10 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 $50.8 million or 16.6% in 2025 compared to 2024 due primarily to lower yield.
We will seek to purchase GSE-issued floating-rate SOFR-indexed MBS at appropriate risk-return levels.
Interest income from fixed-rate MBS decreased by $15.2 million or 2.4% in 2025 compared to 2024 due to lower yield, which was
411 basis points in 2025 , down from 431 basis points in 2024 , partially offset by an increase in invested balances. Transaction volume
of fixed-rate MBS, as measured by average outstanding balance was $15.1 billion in 2025 , compared to $14.7 billion in 2024 .
Mortgage loans held-for-portfolio — Interest income from mortgage loans was $98.4 million in 2025 , compared to $81.5 million in
2024 . 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 398 basis points in 2025 , compared to 362 basis points in 2024 . 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 $4.8 million in 2025 , compared to net amortization of $4.1 million in
2024 . 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 December 31, 2025 , mortgage loans under MAP were $1.2
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 10.8 Interest Expense — Principal Categories
Years Ended December 31,
Percentage
Change
Percentage
Change
Interest Expense
Consolidated obligations bonds
Fixed
Floating
Consolidated obligations discount notes
Deposits
Mandatorily redeemable capital stock
Cash collateral held and other borrowings
Securities sold under agreement to repurchase
Total interest expense
Interest expense for 2025 was $6.3 billion , a decrease of 20.1% compared to 2024 . (As noted elsewhere in this document, interest
income decreased by 19.4% compared to 2024 ).
The decrease in interest expense was driven by lower average balances in short-term Consolidated obligations outstanding and lower
market interest rates in 2025 .
Rate-related decrease in funding expense was $1.3 billion and volume-related decrease in funding expense was $0.3 billion in 2025
compared to 2024 . Aggregate yield paid on total funding in 2025 was 418 basis points, compared to 504 basis points in 2024 .
We continue to make changes to our liability composition as compared to 2024 . In 2025 , 32.9% of average total interest-earning assets
were funded by fixed-rate CO bonds and 20.4% were funded by floating-rate CO bonds. In 2024 , fixed-rate CO bonds funded 35.0%
of average total interest-earning assets and floating-rate CO bonds funded 21.7% of average total interest-earning assets. The usage of
CO discount notes has increased to 39.6% in 2025 from 36.2% in 2024 .
Hedging strategies under ASC 815 have remained effective and are operating as designed. For more information, see Table 10.3 Net
Interest Adjustments from Qualifying Hedge Interest Rate Swaps.
Allowance for Credit Losses — 2025 , 2024 and 2023
Allowance for credit losses recorded on mortgage loans in the Statement of Condition was $3.7 million at December 31, 2025 , $3.1
million at December 31, 2024 , and $3.3 million at December 31, 2023 . Allowance for credit losses recorded on investments was $0.1
million at December 31, 2025 , $0.1 million at December 31, 2024 , and $0.6 million at December 31, 2023 . No allowance was
necessary on advances, other assets, and commitments.
Analysis of Non-Interest Income (Loss) — 2025 , 2024 and 2023
The principal components of Non-interest income (loss) are summarized below (in thousands):
Table 10.9 Other Income (Loss)
Years Ended December 31,
Other income (loss)
Service fees and other (a)
Instruments held under the fair value option gains (losses) (b)
Derivative gains (losses) (c)
Securities gains (losses) (d)
Equity investments gains (losses) (e)
Litigation settlement
Gains (losses) from extinguishment of debt
Total other income (loss)
(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 $18.9 million
in 2025 compared to $18.8 million in 2024 and $17.3 million in 2023 . 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-K.
(c) See Table 10.11 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 10.10 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 10.10 Net Gains (Losses) on Trading Securities Recorded in the Statements of Income
Years Ended December 31,
Net unrealized gains (losses) on trading securities held at period-end
Net gains (losses) on trading securities sold/matured during the period
Net gains (losses) on trading securities
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 December 31, 2025 and December 31, 2024 .
Other income (loss) — Derivatives and Hedging Activities — 2025 , 2024 and 2023
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 10.11 Other Income (Loss) — Impact of Derivative Gains and Losses (in thousands)
Impact on Other Income (Loss)
Years Ended December 31,
Derivatives not designated as hedging instruments
Interest rate swaps (a)
Caps or floors
Mortgage delivery commitments
Swaps economically hedging instruments designated under FVO (b)
Accrued interest on derivatives in economic hedging relationships (c)
Net gains (losses) related to derivatives not designated as hedging instruments
Price alignment amount (d)
Net gains (losses) on derivatives and hedging activities
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 $131.3 million , $17.1 million and $116.3 million in 2025 , 2024 and 2023 . 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 , 2024 and 2023
The following table sets forth the major categories of operating expenses (dollars in thousands):
Table 10.12 Operating Expenses, and Compensation and Benefits
Years Ended December 31,
Percentage
of Total
Percentage
of Total
Percentage
of Total
Operating Expenses (a)
Compensation & Benefits
Occupancy
Depreciation
Contractual and Computer Service Agreement
Other Operating Expenses (b)
Total Operating Expenses
Voluntary Contributions
Finance Agency and Office of Finance (c)
Other Expenses (d)
Total Operating Expenses and Others
(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 , 2024 and 2023
For more information about assessments, see Affordable Housing Program and Other Mission Related Programs and Assessments
under Part I Item 1 Business in this Form 10-K.
The following table provides roll forward information with respect to changes in Affordable Housing Program liabilities (in
thousands):
Table 11.1 Affordable Housing Program Liabilities
Years Ended December 31,
Beginning balance
Additions from current period’s assessments
Voluntary Contribution
Supplemental Contribution
Net disbursements for grants and programs
Ending balance
AHP assessments allocated from net income totaled $66.7 million in 2025 , $82.1 million in 2024 and $83.5 million in 2023 .
Assessments are calculated as a percentage of net income, and the changes in allocations were in tandem with changes in net income.
Voluntary Contributions
The Bank is statutorily required to set aside 10% of its profits to support affordable housing each year. These funds assist members in
serving very low-, low- or moderate-income households. In addition to statutory AHP assessments, the Bank stated in a March 2023
public comment letter to the FHFA that we had targeted making voluntary contributions of approximately 5% of our earnings in
support of affordable housing and community investment initiatives, collectively referred to as voluntary contributions, and committed
to making voluntary contributions representing 5% or more of our prior year earnings beginning in 2024 . For the year ended
December 31, 2025 , the Bank contributed $43.5 million to voluntary housing and community development programs. The $43.4
million commitment represents 5.0% in voluntary contributions as a percentage of 2024 pre-assessment income. In addition, we also
contributed $4.8 million in a supplemental voluntary contribution to AHP for a total amount of $48.3 million in voluntary
contributions.
The following tables provide a summary of the Banks voluntary contribution results for the years ended December 31, 2025 and 2024
(in thousands):
Table 12.1 Voluntary Contribution Commitment and Fulfillment
Years ended December 31,
Voluntary contribution commitment
Voluntary contribution fulfillment
Excess over commitment
Fulfillment, as a % of prior year net income subject to assessment, as adjusted
Voluntary contribution fulfillment
Supplemental voluntary contributions to AHP (a)
Total voluntary contributions, including supplemental contributions to AHP assessment
(a) Because voluntary contributions are recorded as expenses in the income statement, the contributions reduce the Bank’s net
income before assessments. This, in turn, would reduce the statutory AHP assessment. As such, the Bank has committed to a “do
no harm” provision by making a supplemental voluntary contribution to AHP in an amount that would restore the statutory AHP
assessment to the amount it would have been if the Bank had not made the voluntary contributions.
For the year ended December 31, 2025 , the total of statutory AHP assessment expense and voluntary contribution fulfillment,
including the supplemental voluntary contributions to AHP, was $115.0 million .
Table 12.2 Voluntary Housing and Community Investment Expenses
Years ended December 31,
Voluntary AHP expenses
Voluntary supplemental AHP expenses
Affordable Housing
Small Business Recovery Grant
Charitable Contributions
Other
Total voluntary housing & community investment expense
For the years ended December 31, 2025 and 2024 , the Bank expensed $37.3 million and $38.0 million , which consisted of voluntary
AHP contribution expenses, supplemental voluntary AHP contribution expenses, voluntary grants and donations and other community
investment and housing expenses.
Table 12.3 Voluntary Contribution Fulfillment
Years ended December 31,
Voluntary contributions
Interest income
Non-interest expense (a)
Voluntary contribution fulfillment
(a) Excludes $4.8 million of supplemental voluntary contributions to AHP in 2025 . Because voluntary contributions are recorded as
expenses in the income statement, the contributions reduce the Bank’s net income before assessments. This, in turn, would reduce
the statutory AHP assessment. As such, the Bank has committed to a “do no harm” provision by making a supplemental voluntary
contribution to AHP in an amount that would restore the statutory AHP assessment to the amount it would have been if the Bank
had not made the voluntary contributions.
Figures 12.4 and 12.5 present the composition of the Banks fulfillment of voluntary contributions, by attribute, for the years ended
December 31, 2025 and 2024 .
