President's Report

February 28, 2003

At the Bank

Member Demand for Advances Remains Strong

The Home Loan Bank began 2003 with a strong financial performance. In January at $66.5 billion, advances averaged $557 million above December’s level and closed January at $68.1 billion. Compared with January 2002, average advances increased by a healthy $7.2 billion. Increases in demand were booked in Long-Term Fixed, Adjustable Rate of Credit and Repo advance products. Average short-term investments during January 2003 decreased by $1.1 billion from December 2002’s levels, while average mortgage-backed securities increased $350 million. In January, at $180.9 million, annualized net income after REFCORP remained strong. This solid return for our stockholders indicates that 2003 is off to a good start. Through our competitive pricing, innovative products, and exceptional service, we look forward to providing sustained strong performance and greater value.

2003 Regional Stockholder Meetings Set for Spring

Arrangements have been finalized for the Home Loan Bank’s 2003 Regional Stockholder Meetings. This year’s meetings will focus on the transition to our new risk-based capital plan -- which will go into effect on October 1, 2003. The new, flexible plan changes the minimum capital investment in our Bank. It will also change the investments required when you borrow at our advances window or when you use our other credit products. At the meetings, we will also discuss the Home Loan Bank’s accomplishments in 2002 as well as the value membership brings to your organization. 

Given the importance of the new capital structure, I believe these meetings will be a good investment of your time. The following is a list of the dates and locations of the 2003 Regional Stockholder Meetings: 

March 25, 2003 Bankers Club Puerto Rico Hato Rey, PR
April 23, 2003 Buffalo/Niagara Marriott Buffalo, NY
April 24, 2003 Wyndham Syracuse Hotel Syracuse, NY
April 25, 2003 Albany Marriott Albany, NY
May 6, 2003 Club 101 New York, NY
May 20, 2003 Sheraton Meadowlands East Rutherford, NJ
May 21, 2003 Seaview Marriott Galloway, NJ

The May 6 meeting in New York City will be followed by a cocktail reception honoring our recently retired Directors. Watch your mail in mid-March for more information and registration forms. Should you have any questions regarding the meetings, please contact Jim Gilmore, Senior Vice President of Banking Services, at (212) 441-6812.

FHLBNY Submits Pro Multi-District Membership Comments to FHFB

The Home Loan Bank of New York submitted comments arguing in favor of Limited Multi-District Membership (LMDM) to the Federal Housing Finance Board (FHFB) on February 7, 2003. (Our comments were made in response to a December 20, 2002 request by the FHFB, our regulator, for all 12 FHLBanks to comment on the issue.) 

In our February 7, 2003, comments we stressed that consolidation of our member institutions will continue and that the Home Loan Bank System needs to be permitted LMDM in order for the Bank System to stay in step and efficiently serve the financial services industry. LMDM will permit the continuing close connection of the deposit bases and communities served by each member lender to the FHLBank in each region. The FHLBNY also recommended that the FHFB make the effective date of the change retroactive to allow the surviving organizations of acquired institutions that previously petitioned the FHFB on the issue of LMDM to again enjoy the benefits of their previous partnerships. The FHFB indicated that, after reviewing the comments from the Home Loan Banks, the FHFB will determine if multi-district membership should be permitted; and then, if needed, the agency is shooting for June of 2003 as the target date for a rulemaking to modernize membership terms. 

We are appreciative to FHFB Chairman John T. Korsmo and the FHFB staff for considering the issue.

FHFB/SEC Disclosure Regulation Update

Although I do not have anything concrete to report to you, the Home Loan Banks are continuing to work with the policymakers in Washington to work out an agreement that will ensure full and complete financial disclosure consistent with the standard set forth in the Securities Exchange Act of 1934 and in the related implementing regulations of the SEC. But the trick in doing this is to ensure that no unintended consequences of voluntarily registering will ripple through the System, hindering your ability to tap our low-cost funds. 

I would like to thank each stockholder for your business. 


Alfred A. DelliBovi 

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Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This report may contain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. These statements may use forward-looking terms, such as “projected,” “expects,” “may,” or their negatives or other variations of these terms. The Bank cautions that, by their nature, forward-looking statements involve risk or uncertainty and that actual results could differ materially from those expressed or implied in these forward-looking statements or could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties 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. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

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