President's Report

October 4, 2005

To the Stockholders

I would like to begin this month's Report from the President with a special introduction. As reported in the press and last month in my report, the Home Loan Bank of New York became a SEC registrant on August 29, 2005. On that date, a new set of rules and regulations became applicable to us. Some of those rules include, as previously reported, the SEC Fair Disclosure regulations. In order to ensure that the Bank meets the demands of these rules, the Report from the President will be transmitted and posted on our web page on the first Tuesday or Thursday of the month to coincide with the filing of an SEC Form 8-K on the same day.

Please keep in mind that Regulation FD deals not only with external communications but also with verbal communications with employees and Directors of the Bank. So when you meet our employees or Directors at conferences or other meetings, please remember that they are duty bound to follow these SEC rules.

And now to the business of the Bank.

At the Bank

Advances Averaged $61.8 Billion

Advances averaged $61.8 billion in August, down $700 million from July. We ended the month at $61.2 billion. Several members have chosen to shrink their balance sheets in response to the current interest rate environment. Regardless of the environment, the Bank works to provide its members with the most competitive and flexible sources of low-cost funding. And, we always look to offer our members attractive terms on advance products through special offerings in response to member requests and market opportunities.

In June, the Bank introduced the Fed Funds Floating Rate Advance, a new adjustable alternative for members. The "Fed Funds Floater" Advance is designed to help fund a portion of members' cash positions. The product’s rate is tied to the Fed Funds rate and resets daily. This new advance product is a success: nine members have already taken down over $500 million in Fed Funds Floating Rate Advances.

Should you have any questions on how the Bank can help you to meet your liquidity needs, please contact our Calling Officers at (212) 441-6700.

FHLBNY to Conduct Capital Exchange in December

With the New York Home Loan Bank becoming an SEC registrant, the decks have been cleared for the capital exchange of our members’ stock as required by the Gramm-Leach-Bliley Act. This exchange will move the Bank to a risk-based capital structure. As previously reported in an 8-K filed on September 20, 2005, the Board of Directors of the Bank voted on September 15, 2005, to establish December 1, 2005, as the "Effective Date" of the Bank's new Capital Plan. A detailed Information Statement regarding the Capital Plan is being mailed to all stockholders today, October 4, 2005.

Gulf Coast Update

During the past few weeks, Hurricanes Katrina and Rita slammed into the states of Alabama, Florida, Louisiana, Mississippi, and Texas.

Our Board has directed $250,000 to be donated by the Bank to help with the rebuilding. The rebuilding effort involves many partners and leaders all across the country. I would like to commend all those involved. And I would like to acknowledge in particular the efforts of Sandy Belden, a member of our Board of Directors and President and CEO of Community Bank, DeWitt, New York. Sandy is currently serving as a Member of the Board of Governors of the American Red Cross and is contributing his time, energy, and leadership through and with the American Red Cross to help.

I would also like to note that Harold E. Doley, III, a member of our Board of Directors and Principal of The Lugano Group Incorporated, New York City, is a New Orleans native with family and business interests located in the Crescent City. Harold is intimately involved with the relief efforts from the New York region.

As the Bank previously reported in an 8-K filed on September 22, 2005, Bank management believes that there was no material impact from Hurricane Katrina on the Bank or the collateral behind its advances or asset-backed investments. In addition, the ability of those insurance companies insuring certain of the Bank’s investments to meet their obligations under various insurance contracts with the Bank does not appear to have been impaired as a result of Hurricane Katrina.

Our thoughts and prayers go out to all those impacted by these natural disasters.

Ten Community Lenders Join the Federal Home Loan Bank

Ten community member lenders have recently joined the Home Loan Bank. I am pleased to welcome four members headquartered in New Jersey and six members headquartered in New York as the Bank's newest stockholders.

The new members in New Jersey are: Enterprise Bank, Kenilworth; Harvest Community Bank, Pennsville; Monmouth Community Bank, N.A., Long Branch; and Pascack Community Bank, Westwood.

The new members in New York are: CHB America Bank, New York; Citizens Bank, National Association, Albany; Gotham Bank of New York, New York; Metropolitan National Bank, New York; Progressive Credit Union, New York; and The National Bank of Vernon, Vernon.

I again welcome our newest members and thank all customers and stockholders for their business.

We value your loyalty to the Home Loan Bank, and we respect your commitment to your customers. We are profoundly grateful for the opportunity to serve you.


Alfred A. DelliBovi
President & CEO

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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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