More than $110 million dedicated to affordable housing and housing. Urban development towards 2024
Chicago, April 22, 2024–(BUSINESS WIRE)–Federal Home Loan Bank of Chicago (FHLBank Chicago) today announced preliminary, unaudited financial results for the first quarter of 2024. As of the first quarter, FHLBank Chicago committed more than $110 million to affordable housing. Urban development efforts towards 2024.
“As we navigate the market events of the past year, FHLBank Chicago is reaching new heights in support of our member financial institutions and the communities they serve,” said Michael Erickson, president and chief executive officer of FHLBank Chicago. We have arrived.” “In 2024, we remain focused on reinvesting in our neighborhoods by serving as a reliable source of funding and liquidity for our members and taking action to address real housing and community needs. I will go.”
Financial Highlights for Q1 2024
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Net income was $182 million, compared to $143 million in the first quarter of 2023. This was due to higher returns on our investment and prepayment portfolios due to rising interest rates and higher non-interest income primarily due to gains from derivatives used for hedging. Our Market Risk Exposure.
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Total assets increased to $126.3 billion from $118.4 billion as of December 31, 2023. This change is primarily due to an increase in the liquidity portfolio.
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The balance of advances decreased from $65.3 billion as of December 31, 2023 to $59.5 billion. This is mainly due to a decrease in the demand for funds on the balance sheets of deposit trading members, as well as a decrease in the demand for loans that lead to repayments.
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Mortgage loans held in a portfolio through Mortgage Partnership Finance® The program increased from $11.4 billion to $11.7 billion as of December 31, 2023. This was primarily due to new acquisitions exceeding repayments and maturity activity.
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As of March 31, 2024, FHLBank Chicago was in compliance with all regulatory capital requirements.
“As we look to 2024, FHLBank Chicago remains committed to leveraging our financial strength to support our members and their communities through affordable housing and community investment initiatives,” Erickson said. “We look forward to continuing to deliver value and adapting our efforts to meet the needs of our members and districts.”
Ongoing commitment to housing and community development
FHLBank Chicago has allocated approximately $49 million in its annual Affordable Housing Program (AHP) General Fund, and competitive rounds are scheduled to be held from May 6, 2024 to June 14, 2024. Additionally, the maximum grant amount per project will double to $2 million in 2024. economic implications for future affordable housing projects and developments;
FHLBank Chicago launches Year-Round Down Payment Plus® (DPP®) The grant program launched in January, with a 2024 budget of $39 million and a new annual cap of $1 million per member, almost 43% above the 2023 cap of $700,000. Masu. These programs allow participating members to provide up to $10,000 in down payment and closing cost assistance to eligible low-income borrowers.
Three Community First® Established in response to critical needs of our members and communities in Illinois and Wisconsin, our grant programs (Diverse Developer Initiative, Housing Counseling Resource Program, and Small Business Grant Acceleration) will enter their third year in 2024. enter. FHLBank Chicago committed more than $25 million to these programs in 2024 to develop affordable housing, access financial education, and finance small businesses.
Additionally, FHLBank Chicago offers Community Advance at below-market rates to help members finance affordable housing and economic development needs in their communities, beginning in the first quarter of 2024. More than $237 million has been funded.
For financial details, see the condensed income statement and statement of condition below. The company's Form 10-Q for the quarter ending March 31, 2024 is expected to be filed with the Securities and Exchange Commission (SEC) next month.
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Abridged conditional statement |
||||||||||
|
(in millions of dollars) |
||||||||||
|
(Preliminary and unaudited) |
||||||||||
|
March 31, 2024 |
December 31, 2023 |
change |
||||||||
|
Cash and payables from banks, interest-bearing deposits, federal funds sold, and securities purchased under resale agreements. |
$ |
28,828 |
$ |
14,472 |
99 |
% |
||||
|
investment bonds |
25,538 |
26,405 |
(3 |
)% |
||||||
|
progress |
59,477 |
65,306 |
(9 |
)% |
||||||
|
MPF loans included in portfolio (net of allowance for credit losses) |
11,721 |
11,410 |
3 |
% |
||||||
|
other |
717 |
791 |
(9 |
)% |
||||||
|
assets |
$ |
126,281 |
$ |
118,384 |
7 |
% |
||||
|
Consolidated debt discount notes |
$ |
37,963 |
$ |
28,109 |
35 |
% |
||||
|
consolidated debt bonds |
78,186 |
80,389 |
(3 |
)% |
||||||
|
other |
1,776 |
1,746 |
2 |
% |
||||||
|
liabilities |
117,925 |
110,244 |
7 |
% |
||||||
|
capital stock |
3,166 |
3,277 |
(3 |
)% |
||||||
|
retained earnings |
5,085 |
4,979 |
2 |
% |
||||||
|
Accumulated other comprehensive income (loss) |
105 |
(116 |
) |
191 |
% |
|||||
|
capital |
8,356 |
8,140 |
3 |
% |
||||||
|
Total debt and equity |
$ |
126,281 |
$ |
118,384 |
7 |
% |
||||
|
Member Standby Letter of Credit – Off Balance Sheet |
$ |
12,796 |
$ |
12,601 |
2 |
% |
||||
|
Summary income statement |
||||||||||
|
(in millions of dollars) |
||||||||||
|
(Preliminary and unaudited) |
||||||||||
|
For three months until March 31st, |
||||||||||
|
2024 |
2023 |
change |
||||||||
|
interest income |
$ |
1,775 |
$ |
1,582 |
12 |
% |
||||
|
Interest expense |
(1,528 |
) |
(1,360 |
) |
12 |
% |
||||
|
net interest income |
247 |
222 |
11 |
% |
||||||
|
Reversal of credit losses (provision) |
— |
— |
— |
% |
||||||
|
Net interest income after reversal of allowance for loan losses |
247 |
222 |
11 |
% |
||||||
|
Non-interest income (loss) |
twenty four |
(Four |
) |
700 |
% |
|||||
|
Non-interest expenses |
(69 |
) |
(59 |
) |
17 |
% |
||||
|
Income before appraisal |
202 |
159 |
27 |
% |
||||||
|
Affordable housing program evaluation |
(20 |
) |
(16 |
) |
twenty five |
% |
||||
|
Net income |
$ |
182 |
$ |
143 |
27 |
% |
||||
|
average interest assets |
$ |
127,659 |
$ |
133,334 |
(Four |
)% |
||||
|
Net interest income yield on average interest assets |
0.77 |
% |
0.67 |
% |
0.10 |
% |
||||
About the Federal Home Loan Bank of Chicago
FHLBank Chicago is a regional bank within the Federal Home Loan Banking System. FHLBank is a government-sponsored corporation created by Congress to ensure access to low-cost financing for its member financial institutions and is focused on providing solutions that support the housing and community development needs of its member customers. I am. FHLBank Chicago is a self-funded cooperative owned by its members in Illinois and Wisconsin, which include commercial banks, credit unions, insurance companies, savings institutions, and community development financial institutions. For more information about FHLBank Chicago, visit fhlbc.com.
“Community First,” “Downpayment Plus Program,” “DPP,” “Mortgage Partnership Finance,” and “MPF” are registered trademarks of the Federal Home Loan Bank of Chicago.
Forward-looking information: This announcement uses forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements other than statements of historical fact, including statements regarding beliefs, plans, objectives and expectations. , estimate, or forecast. These statements are based on his FHLBank Chicago forecasts as of this date. The words “believe,” “estimate,” “expect,” “tentative,” “continue,” “remain,” “commit” and similar statements and their plural and negative forms are It is used to identify parts without. Such a positive statement. For example, statements regarding future dividends or financial commitments are forward-looking statements. FHLBank Chicago cautions that forward-looking statements by their nature involve risks and uncertainties, including, but not limited to: volatility in credit and debt markets; economic conditions (including the development of the banking industry and the liquidity of the financial system); changes in demand for prepayments or consolidated debt; Change of members. the reliability of projections, assumptions and models regarding future financial performance and conditions; FHLBank Chicago's ability to execute its business model and pay future dividends; FHLBank Chicago's ability to protect the security of its information systems and manage failures, interruptions and breaches; The risk factors described in FHLBank Chicago's periodic filings with the Securities and Exchange Commission (SEC) are available on the SEC's reporting website. FHLBank Chicago does not undertake any obligation to update any forward-looking statements contained herein. In addition, FHLBank Chicago may change its business plans or program plans for reasons including, but not limited to, legislative or regulatory changes, changes in membership or Member usage of the Programs, or changes in FHLBank Chicago's sole discretion. reserves the right to. board of directors. Therefore, FHLBank Chicago cautions that actual results may differ materially from those expressed or implied by these forward-looking statements or that the extent to which certain plans, objectives, projections, estimates and projections will be realized may be affected. This warning warns you that it may cause New factors may emerge, and we cannot predict the nature of each new factor or assess its potential impact. Given these uncertainties, you should not place undue reliance on forward-looking statements.
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contact address
Heather Boxstruck, 312.565.5282
hbockstruck@fhlbc.com
