Related Party Transactions

6 Months Ended

Jun. 30, 2011

Related Party Transactions [Abstract]

Related Party Transactions

Note 18. Related Party Transactions.

The FHLBNY is a cooperative and the members own almost all of the stock of the Bank. Any stock not owned by members is held by former members. The majority of the members of the Board of Directors of the FHLBNY are elected by and from the membership. The FHLBNY conducts its advances business almost exclusively with members. The Bank considers its transactions with its members and former member stockholders as related party transactions in addition to transactions with other FHLBanks, the Office of Finance, and the Finance Agency. All transactions with all members, including those whose officers may serve as directors of the FHLBNY, are at terms that are no more favorable than comparable transactions with other members.

Debt Transfers

For the three and six months ended June 30, 2011 and the same period in 2010, the Bank did not assume debt from another FHLBank. The Bank did not transfer debt to another FHLBank for the three months ended June 30, 2011 and the same period in 2010. For the six months ended June 30, 2011, the Bank transferred $150.0 million of its CO debt to another FHLBank. No bonds were transferred by the FHLBNY to another FHLBank in the same period in 2010.

Advances sold or transferred

No advances were transferred/sold to the FHLBNY or from the FHLBNY to another FHLBank in any periods in this report.

MPF Program

In the MPF program, the FHLBNY may participate out certain portions of its purchases of mortgage loans from its members. Transactions are at market rates. Loans participated by the FHLBNY to the FHLBank of Chicago was $71.4 million and $81.2 million at June 30, 2011 and December 31, 2010 on a cumulative basis. Since 2004, the FHLBNY has not shared its purchases with the FHLBank of Chicago. Fees paid to the FHLBank of Chicago were $0.1 million and $0.3 million for the three and six months ended June 30, 2011 and $0.1 million and $0.3 million in the same periods in 2010.

Mortgage-backed Securities

No mortgage-backed securities were acquired from other FHLBanks during the periods in this report.

Intermediation

Notional amounts of $550.0 million were outstanding at June 30, 2011 and December 31, 2010 in which the FHLBNY acted as an intermediary to sell derivatives to members, and also include offsetting identical transactions with unrelated derivatives counterparties. Net fair value exposures of these transactions at June 30, 2011 and December 31, 2010 were not material. The intermediated derivative transactions were fully collateralized.

Loans to other Federal Home Loan Banks

In the six months ended June 30, 2011 and 2010, FHLBNY extended $100.0 million and $27.0 million to another FHLBank. There was no loan made during the three months ended June 30, 2011 and June 30, 2010. Generally, loans made to other FHLBanks are uncollateralized. Interest income from such loans was not significant in any period in this report.

The following tables summarize outstanding balances with related parties at June 30, 2011 and December 31, 2010, and transactions for the three and six months ended June 30, 2011 and the same periods in 2010 (in thousands):

Related Party: Outstanding Assets, Liabilities and Capital

	June 30, 2011				December 31, 2010
	Related		Unrelated		Related		Unrelated
Assets
Cash and due from banks	$	—	$	5,545,092	$	—	$	660,873
Interest-bearing deposits		—		—		—		—
Federal funds sold		—		4,475,000		—		4,988,000
Available-for-sale securities		—		3,537,983		—		3,990,082
Held-to-maturity securities
Long-term securities		—		8,399,659		—		7,761,192
Certificates of deposit		—		—		—		—
Advances		74,791,153		—		81,200,336		—
Mortgage loans 1		—		1,296,251		—		1,265,804
Accrued interest receivable		207,001		29,004		256,617		30,718
Premises, software, and equipment		—		14,279		—		14,932
Derivative assets 2		—		33,006		—		22,010
Other assets 3		186		13,643		113		21,393
Total assets	$	74,998,340	$	23,343,917	$	81,457,066	$	18,755,004
Liabilities and capital
Deposits	$	1,902,151	$	—	$	2,454,480	$	—
Consolidated obligations		—		89,828,662		—		91,134,079
Mandatorily redeemable capital stock		58,221		—		63,219		—
Accrued interest payable		6		181,235		10		197,256
Affordable Housing Program 4		133,831		—		138,365		—
Payable to REFCORP		—		14,732		—		21,617
Derivative liabilities 2		—		694,369		—		954,898
Other liabilities 5		64,330		185,831		49,484		54,293
Total liabilities	$	2,158,539	$	90,904,829	$	2,705,558	$	92,362,143
Capital		5,278,889		—		5,144,369		—
Total liabilities and capital	$	7,437,428	$	90,904,829	$	7,849,927	$	92,362,143

1	Includes insignificant amounts of mortgage loans purchased from members of another FHLBank.
2	Derivative assets and liabilities include insignificant fair values due to intermediation activities on behalf of members.
3	Includes insignificant amounts of miscellaneous assets that are considered related party.
4	Represents funds not yet disbursed to eligible programs.
5	Related column includes member pass-through reserves at the Federal Reserve Bank.

Related Party: Income and Expense transactions

	Three months ended
	June 30, 2011				June 30, 2010
	Related		Unrelated		Related		Unrelated
Interest income
Advances	$	115,504	$	—	$	154,204	$	—
Interest-bearing deposits 1		—		555		—		1,238
Federal funds sold		—		1,601		—		2,804
Available-for-sale securities		—		7,521		—		9,784
Held-to-maturity securities
Long-term securities		—		69,275		—		91,809
Mortgage loans 2		—		15,842		—		16,615
Total interest income	$	115,504	$	94,794	$	154,204	$	122,250
Interest expense
Consolidated obligations	$	—	$	109,808	$	—	$	158,615
Deposits		358		—		963		—
Mandatorily redeemable capital stock		469		—		676		—
Cash collateral held and other borrowings		—		22		—		—
Total interest expense	$	827	$	109,830	$	1,639	$	158,615
Service fees and other	$	1,479	$	—	$	1,129	$	—

	Six months ended
	June 30, 2011				June 30, 2010
	Related		Unrelated		Related		Unrelated
Interest income
Advances	$	274,200	$	—	$	303,844	$	—
Interest-bearing deposits 1		—		1,521		—		2,067
Federal funds sold		—		4,147		—		4,347
Available-for-sale securities		—		16,160		—		15,548
Held-to-maturity securities
Long-term securities		—		140,331		—		190,443
Mortgage loans 2		—		31,328		—		33,356
Total interest income	$	274,200	$	193,487	$	303,844	$	245,761
Interest expense
Consolidated obligations	$	—	$	231,901	$	—	$	323,185
Deposits		828		—		1,854		—
Mandatorily redeemable capital stock		1,213		—		2,171		—
Cash collateral held and other borrowings		—		31		—		—
Total interest expense	$	2,041	$	231,932	$	4,025	$	323,185
Service fees	$	2,735	$	—	$	2,174	$	—

1	Includes de minimis amounts of interest income from MPF service provider.
2	Includes de minimis amounts of mortgage interest income from loans purchased from members of another FHLBank.