January 18, 2007
FHLBNY Fourth Quarter Dividend and 2006 Results
FHLBNY Declares a 7.00% Dividend for the Fourth Quarter of 2006
I am pleased to report that our Board of Directors has approved a cash dividend for the fourth quarter of 2006 at the rate of 7.00 percent (annualized). The Home Loan Bank's dividend rate for the third quarter was 6.25 percent. The dollar amount of the fourth quarter dividend will be approximately $67 million. The dividend will be distributed to member financial institutions on January 31, 2007.
The average rate for dividends paid on the basis of stock ownership in 2006 was 6.06 percent, and the total cash dividend paid for these four quarters was approximately $230 million.
The dividend reflects the Bank’s low-risk profile and conservative investment strategy.
Fourth Quarter and Full-year 2006 Operating Results
Net income for the quarter ended December 31, 2006, was $70.3 million, an increase of 25 percent compared with $56.2 million for the same period in 2005. Net interest income increased $25.8 million, or 25 percent, to $129.2 million for the quarter, up from $103.4 million for the same period in 2005. This increase in net interest income is due primarily to better spreads on advances and investments combined with increased earnings on our capital due to higher interest rates.
For the year, the Bank earned $285.2 million, up 24% from the $230.2 million of earnings for 2005.
Fourth Quarter 2006 Balance-Sheet Highlights
Total assets decreased 3.90 percent to $81.7 billion at December 31, 2006, from $85 billion at year-end 2005. Advances were down to $59 billion, compared with $61.9 billion at year-end 2005, and represented 72.20 percent of total assets. Investments and short-term money-market instruments declined 3.00 percent to $20.5 billion, compared with $21.2 billion at year-end 2005. Member-mortgage assets were approximately the same at the end of 2006, $1.5 billion, as compared to year-end 2005. As a percent of total assets, Capital increased to 4.78 percent on December 31, 2006 as compared with 4.57 percent at year-end 2005.
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 on 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.