Page 62 - July-August 2018 GSE Report Flip Book

FEDERAL HOME LOAN BANK JJUALN. U- ARUYG. 22001188
The FHLB System reported net income was $971 million for second quarter, an increase of $127 million, or 15.0%, compared to the year ago period.
Net interest income after provision (reversal) for credit losses was $1,333 million for the second quarter, an increase of $145 million, or 12.2%, compared to the year ago period. The System’s net interest margin improved to 0.48% for the period, an increase of 2 basis points compared to the same periods in 2017. Non-interest expense was $311 million for the three months ended June 30, 2018, an increase of $26 million, or 9.1%, compared to the same period in 2017.
The System’s Affordable Housing Program assessments totaled $110 million and $207 million for the three months ended June 30, 2018, an increase of $14 million—or 14.6%—compared to the year ago period. (Federal Home Loan Banks Combined Financial Report for the Quarterly Period Ended June 30, 2018, Office of Federal Home Loan Banks, 08/13/18)
Six FHLBs stand firm on “captives” joining the FHLB System
In a letter to the House and Senate leadership with jurisdiction over the Federal Home Loan Bank System, the presidents of the Boston, Dallas, Des Moines, New York, Pittsburgh and Topeka FHLBs cautioned lawmakers against legislation—H.R. 2890 and S. 2361—that would reverse a ban on captive membership installed by FHFA in 2016. The FHLB executives are concerned that, ultimately, real estate investment trusts and other corporate entities will pony up to the discount borrowing window and mar the pristine credit rating the FHLBs enjoy.(Inside Mortgage Finance, Paul Muolo, 07/19/18)
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