President's Report

August 16, 2012

Dividend Announcement

FHLBNY Declares a 4.50% Dividend for the Second Quarter of 2012

I am pleased to announce that, on August 16, 2012, your Board of Directors of the Federal Home Loan Bank of New York approved a dividend rate for the second quarter of 2012 of 4.50% (annualized).  The Bank’s dividend rate for the first quarter of 2012 was also 4.50%.  The dollar amount of the second quarter of 2012 dividend will be approximately $51.5 million.  The cash dividend will be distributed on August 17, 2012.

The team at the Federal Home Loan Bank of New York is focused on ensuring that the Home Loan Bank is a stable and reliable partner for our members.  Through the daily availability of our advances and the consistent quarterly dividend our success has allowed us to provide, we are proud to be a partner our members can rely on.

The dividend reflects the Bank’s low-risk profile and conservative business strategy, and is also reflective of the continuation of a low interest rate environment and potential future economic and market uncertainties.  The payout represents approximately 74 percent of available GAAP net income for the quarter (after setting aside restricted retained earnings); the remainder of net income will be put towards unrestricted retained earnings.  We will continue to maintain retained earnings at calibrated levels to help ensure future regulatory compliance and provide additional protection for the capital investment of our stockholders.  After the dividend payment, as of June 30, 2012, unrestricted retained earnings will be approximately $714 million, and restricted retained earnings will be $61.7 million.

To allow sufficient time to finalize financial results each quarter, please note that the Bank’s Board intends to continue to vote on dividend declarations at least six weeks after the close of the calendar quarter.

The FHLBNY filed its Form 10-Q for the second quarter of 2012 with the U.S. Securities and Exchange Commission on August 10, 2012. The document is available at the “EDGAR” portion of the SEC website at www.sec.gov.

 

Sincerely,
Alfred A. DelliBovi
President and 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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