Page 51 - The GSE Report March-April 2018

FEDERAL HOME LOAN BANK MJARN.U-ARPYR.20210818
FEDERAL HOME LOAN BANKS
The Federal Home Loan Bank System reports $3.4 billion net income for FY2017
The Federal Home Loan Bank System’s total assets were $1,103.5 billion at December 31, 2017, an increase of 4.4% from $1,056.7 billion at December 31, 2016. Advances totaled $731.5 billion at December 31, 2017, the highest balance since mid-2009, and an increase of 3.7% from $705.2 billion at December 31, 2016. The top 10 advance holding company borrowers represented 37.3% of the total principal amount of advances outstanding at December 31, 2017. Total GAAP capital was $56.5 billion at December 31, 2017, an increase of 7.7% from $52.5 billion at December 31, 2016.
FHLB SYSTEM’S SELECTED FINANCIAL DATA
SELECTED FINANCIAL DATA
(dollars in millions) 2017 2016 2015 2014 2013
Selected Statement of Condition Data at December 31,
Investments(1) $ 307,280 $ 292,017 $ 273,684 $ 270,217 $ 242,863
Advances
731,544
705,225
634,022
570,726
498,599
Mortgage loans held for portfolio 53,843 48,494 44,575 43,582 44,465
Allowance for credit losses on mortgage loans
(16)
(18)
(18)
(52)
(88)
Total assets 1,103,451 1,056,712 969,239 913,310 834,135
Consolidated obligations
Discount notes 391,480 409,815 494,045 362,303 293,296
Bonds
641,601
578,927
411,851
486,031
473,845
Total consolidated obligations 1,033,081 988,742 905,896 848,334 767,141
Mandatorily redeemable capital stock
1,272
1,704
745
2,631
4,998
Subordinated notes(2) — — 944 944 944
Capital
Total capital stock(3) 37,657 36,234 34,185 33,705 33,375
Additional capital from merger(4)
—
52
194
—
—
Retained earnings 18,099 16,330 14,297 13,211 12,141
Accumulated other comprehensive income (loss)
724
(157)
(634)
54
(511)
Total capital 56,480 52,459 48,042 46,970 45,005
Selected Statement of Income Data for the year ended December 31,
Net interest income $ 4,481 $ 3,835 $ 3,553 $ 3,532 $ 3,379
Provision (reversal) for credit losses
—
6
4
(21)
(19)
Net interest income after provision (reversal) for credit losses 4,481 3,829 3,549 3,553 3,398
Non-interest income (loss)
615
1,154
843
17
329
Non-interest expense 1,336 1,183 1,199 1,046 943
Affordable Housing Program Assessments
384
392
332
269
293
Net income $ 3,376 $ 3,408 $ 2,861 $ 2,255 $ 2,491
Selected Other Data for the year ended December 31,
Cash and stock dividends $ 1,659 $ 1,517 $ 1,514 $ 1,185 $ 843
Dividend payout ratio(5)
49.14%
44.51%
52.92%
52.55%
33.84%
Return on average equity(6)(7) 6.25% 6.90% 6.12% 4.95% 5.80%
Return on average assets
0.31%
0.34%
0.31%
0.26%
0.32%
Average equity to average assets(7) 5.02% 4.88% 5.08% 5.26% 5.50%
Net interest margin(8)
0.42%
0.38%
0.39%
0.41%
0.44%
Selected Other Data at December 31,
GAAP capital-to-asset ratio
5.12%
4.96%
4.96%
5.14%
5.40%
Regulatory capital-to-assets ratio(9) 5.17% 5.14% 5.10% 5.42% 6.06%
____________________
(1) Investments consist of interest-bearing deposits, securities purchased under agreements to resell, federal funds sold, trading securities, available-for-sale securities, and held- to-maturity securities.
(2) The subordinated notes outstanding, issued by the FHLBank of Chicago, matured and were paid in full on June 13, 2016. (See Note 15 - Subordinated Notes to the
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accompanying combined financial statements for additional information on subordinated notes.)
(3) FHLBank capital stock is redeemable at the request of a member subject to the statutory redemption periods and other conditions and limitations. (See Note 16 - Capital to
the accompanying combined financial statements for additional information on the statutory redemption periods and other conditions and limitations.)
(4) Additional capital from merger resulted from the merger effective May 31, 2015, between the FHLBank of Des Moines and the FHLBank of Seattle, and primarily represented
the amount of the FHLBank of Seattle's closing retained earnings balance as of the merger date, adjusted for fair value and other purchase accounting adjustments, and
identified intangible assets, and is net of dividends paid by the FHLBank of Des Moines subsequent to the merger date. The balance in additional capital from merger was