President's Report
January 19, 2006
FHLBNY Declares a 5.11% Dividend for the Fourth Quarter of 2005
I am pleased to report that our Board of Directors has approved a dividend rate for the fourth quarter of 2005 of 5.11% (annualized). The Home Loan Bank's dividend rate for the third quarter was 5.25%. The dollar amount of the fourth quarter dividend will be approximately $46 million. The dividend will be distributed to member financial institutions on January 31, 2006.
The average rate for dividends paid on the basis of stock ownership in 2005 was 5.02%, and the total cash dividend paid in these four quarters was approximately $184 million.
The dividend reflects the Bank’s low-risk profile and conservative investment strategy. It represents a payout of approximately 80% of core earnings for the quarter. Retained earnings as of December 31, 2005, after the dividend payment, will be approximately $245 million. The Bank intends to bring the post-dividend retained earnings to approximately $250 million by mid year.
As an SEC registrant, additional financial and other disclosures may be found on the SEC website at http://www.sec.gov/edgar/searchedgar/webusers.htm. The Federal Home Loan Bank of New York is a Congressionally chartered wholesale Bank. It is part of the Federal Home Loan Bank System, a national wholesale banking network of 12 regional, stockholder-owned banks. The FHLB of New York currently serves over 300 financial institutions in New Jersey, New York, Puerto Rico, and the U.S. Virgin Islands. The mission of the Federal Home Loan Bank of New York is to support the efforts of local members to make home mortgages to families of all income levels and provide credit to spur community growth.
Sincerely,
Alfred A. DelliBovi
President & CEO
This document may contain forward-looking statements regarding the Federal Home Loan Bank of New York's future financial and non-financial performance. Forward-looking statements are subject to uncertainties. Actual performance may differ materially from projections because of many factors including, but not limited to: regulatory and accounting rule adjustments or requirements, changes in interest rates, changes in projected business volumes, changes in prepayment speeds on mortgage assets, the cost of our funding, changes in our membership profile, the withdrawal of one or more large members, competitive pressures, shifts in demand for our products, and general economic conditions. The Federal Home Loan Bank of New York undertakes no obligation to update any forward-looking statements made in this document.
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