FHLB Cincinnati Announces 2018 Second Quarter Results
The Federal Home Loan Bank of Cincinnati (the FHLB) today released unaudited financial results for the second quarter ended June 30, 2018. The FHLB expects to file its second quarter 2018 Form 10-Q with the Securities and Exchange Commission on or about August 9, 2018.
For the second quarter, net income was $85 million and return on average equity (ROE) was 6.15 percent. This compares to net income of $87 million and ROE of 6.94 percent for the same period of 2017. For the first six months of 2018, net income was $168 million and ROE was 6.19 percent, compared to net income of $152 million and ROE of 6.10 percent for the same period of 2017.
The increase in net income and ROE in the year-to-date comparison period was primarily the result of higher net interest income. Net interest income was higher in both comparison periods primarily due to the rise in short-term interest rates, which improved earnings from funding assets with interest-free capital. However, net income was lower in the quarter-to-date comparison period due to a decline in unrealized fair value gains related to derivatives, hedged items and other financial instruments carried at fair value.