President's Report
December 1, 2005
FHLBNY Implements New Capital Plan
The Federal Home Loan Bank of New York opened for business on December 1, 2005, with a new Capital Plan in place. Prior to the opening of business on December 1, outstanding shares of capital stock owned by the FHLBNY’s community member-lenders were automatically exchanged for shares of the Bank’s new Class B stock.
The new capital structure, mandated by Congress, more closely aligns member stock ownership with member activity levels and establishes supporting risk-based capital requirements. The carefully developed Capital Plan meets the goals of maintaining the Home Loan Bank’s cooperative, conservative business model. (A detailed Information Statement on the Capital Plan is available by clicking here and is also included in an 8-K dated December 1, 2005.)
I am delighted to report that none of our 302 local member lenders opted out of the cooperative prior to the occurrence of the capital exchange. I would also like to express my appreciation to our members for their feedback and cooperation during the capital exchange process.
Advance Demand Stable
October 2005 was a month of stable advance demand. Advances averaged $61.4 billion, up slightly from $60.7 billion in September. We closed the month at $61.0 billion. In October, the Bank offered additional Convertible Advance 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 with low-cost liquidity.
The bottom line of the Home Loan Bank has remained rock solid throughout the year. The FHLBNY’s performance reflected sustained advance demand and measured returns on the highest quality, real estate-supported investments.
Three Industry Stockholders Elected to the Board Of Directors for 2006
As I reported in a special stockholders mailing on November 8, 2005, the 2005 Board election results are in:
In New York, Harry P. Doherty, Vice Chairman of Independence Community Bank, Brooklyn, New York, was re-elected to the Board. Harry was first elected to the Board in 2000. In addition, Carl A. Florio, Eastern New York Regional President of First Niagara Bank of Lockport, New York, was elected to the Board. This will be Carl’s first term.
In New Jersey, David W. Lindstrom, President and Chief Executive Officer of Franklin Savings Bank, SLA, Pilesgrove, New Jersey, was re-elected to the Board. David was first elected to the Board in 2003.
Each of these industry directors will serve on the Board for a three-year term ending December 31, 2008. I congratulate Harry and Dave on their re-election and Carl on his election to the Board.
Your Home Loan Bank team wishes to thank you, our members, for your use of our products and services. Doing so allows 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
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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