President’s Report

January 4, 2017

Proven Reliability

José R. GonzálezTo say that 2016 was an “interesting” year would be an understatement. Globally, nationally and locally, instability and change helped shape the year. In 2016, the United Kingdom voted to leave the European Union, a surprising decision that roiled global markets, the effects of which still reverberate today. At home, the year provided a campaign season the likes of which we had never seen, resulting in a historic election. When President-elect Donald Trump is sworn into office later this month, he will lead a new Administration that will shape our economy and U.S. policy for years to come. However, in a year in which even the Chicago Cubs bucked the trend by shaking their “Lovable Losers” mantle and winning the franchise’s first World Series in 108 years, one thing remained the same: the reliability of the Federal Home Loan Bank of New York.

At the FHLBNY, we take pride in being a reliable partner for our members. Just as your customers rely on you to make the loans that allow them to become homeowners, grow their business or send their children to college, so too do our members rely on us to help meet their funding needs. In the often chaotic operating environment of 2016, in which the markets frequently presented challenges, the dependability of this funding source was evident in our advances activity: advances grew steadily through the year, ultimately reaching record levels, a volume of business not seen since the height of the financial crisis eight years ago. We also added eight new members in 2016, further strengthening our cooperative and expanding our funding footprint.

Our reliability was not only evident in our advances. It was also reflected in our performance, which was strong throughout 2016, with $278.3 million in net income through the first nine months of the year – an increase of 13 percent from the same period in 2015. This reliability was also seen in the return we provided on our members’ investment in the cooperative. In each of the first three quarters of 2016, the FHLBNY declared a consistent and attractive dividend, returning nearly $200 million to our members.

Our strong performance also allowed us to remain a reliable partner for the community.
In 2016, we awarded a total of $34.4 million in Affordable Housing Program grants to help fund 42 housing initiatives. We also continued to support new homeowners through our First Home Clubsm, providing $13 million in funds to help more than 1,600 households become homeowners.
As we enter 2017, we remain focused on our housing mission and our reliability as a funding partner, and are working to be even better-positioned to support our members.
This year, our new Member Services Desk will become fully operational, streamlining processes across the Bank to more quickly respond to member liquidity needs. We will also continue to upgrade our technology and systems to improve the member experience.
And we will do so from our new and more modern New York headquarters, which will foster even more employee collaboration when we move in later this year upon the expiration of our current lease. And most of all, we will continue to work to ensure that each of you is maximizing your membership in our cooperative. Inside this newsletter, you will find more information on various funding solutions we have developed to help meet member needs.

The environment in which we operated in 2016 was challenging and often times uncertain. And yet our cooperative and our members thrived. As we enter the New Year, I am certain that our stable and trusted partnership will continue to benefit our institutions, our customers and the
communities we all support. I thank you for your business in 2016, and look forward to building on our momentum in 2017.

Sincerely,

José R. González
President and Chief Executive Officer

Please read the Newsletter for the Fourth Quarter 2016

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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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