President's Report
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November 30, 2004 |
AT THE BANK
Advance Demand Stable
October was a month of stable advance demand. Advances averaged $64.4 billion, up slightly from $64.3 billion in September. We closed the month at $65.0 billion. In October, the Bank offered additional LIBOR-based adjustable rate specials that continued to be well subscribed by members. The Bank will look for more opportunities to provide these and other special-advance offerings in the months ahead. We look forward to continuing to be able to provide our members low-cost liquidity.
The bottom line of the Home Loan Bank also remained rock-solid throughout the year. The positive performance reflected substantial advance demand and measured returns on the highest quality, real estate-supported investments. The Bank provided an increasing return in the form of dividends throughout the year. In January the Bank declared a dividend of 1.45%. In April the dividend was declared at 1.58%, in July 2.08% and in October 2.22%. This means for 2004 the Bank paid an average dividend of 1.833%. This translates to an actual dollar amount of $69.8 million.
At the same time the dividend was trending upward, the Bank was building retained earnings. As described in my October report, the Bank has established a methodology to estimate a minimum retained earnings level as well as an optimum level. Based on the Bank’s anticipated risk profile and current income projections, the Bank expects to meet the minimum level by the end of this year. After the retained earnings reach the minimum level, the Bank expects to increase the proportion of its earnings paid out as a dividend up to 80% of core earnings until the optimum retained earnings level is reached, at which time up to 100% of core earnings may be paid to our shareholders. I look forward to being more definitive on this important matter in early 2005.
Four Industry Stockholders Elected to the Board of Directors for 2005
As I reported in a special stockholders mailing on November 2, 2004, in New York, George L. Engelke, Jr., Chairman, President and CEO of Astoria Federal Savings and Loan Association, Lake Success, has been re-elected to the Board.
Joseph R. Ficalora, President and CEO of New York Community Bancorp, Westbury, was newly elected. Mr. Ficalora will succeed Atwood Collins, III, Executive Vice President of M&T Bank, Buffalo, who has served on the Board since January 1997.
In New Jersey, Ronald E. Hermance, Jr., President and CEO of Hudson City Savings Bank, Paramus, has been newly elected to serve on the Board. He will replace Edward C. Gibney, Director, Boiling Springs Savings Bank, Rutherford, who is completing his second term.
Kevin J. Lynch, President and CEO of Oritani Savings Bank, Hackensack, has also been newly elected. He will replace Leopold W. Montanaro, Director, Kearny Federal Savings Bank, Kearny, who is also completing his second term.
Each of these industry directors will serve on the Board for a three-year term ending December 31, 2007.
I congratulate George on his re-election and Joe, Ron, and Kevin on their elections to the Board.
Your Home Loan Bank team wishes to thank you, our members, for your use of our products and services that allow you to expand the availability of mortgage credit, to compete more effectively in your markets, and to promote strong communities.
Sincerely,
Alfred A. DelliBovi
President & CEO
Special Notice
As previously reported, the Home Loan Bank is in the process of becoming a voluntary registrant with the U.S. Securities and Exchange Commission. As a result, some changes are taking place. For example, as previously stated, all of my monthly reports are posted on our website (www.fhlbny.com). Another change is the addition of a disclaimer statement (see below) that will be at the bottom of the last page of all of my future monthly reports to you.
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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