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President’s Report

September 5, 2023

Report from the President
A Vital Mission, A Proven Value

This month, we expect our regulator, the Federal Housing Finance Agency (“FHFA”), to release a report containing a set of recommendations stemming from its FHLBank System at 100: Focusing on the Future review. This initiative was announced a year ago, and the first set of public listening sessions took place in September 2022. The FHFA began the initiative with a view towards the 100th anniversary of the Federal Home Loan Bank System in 2032, and with the aim of ensuring that the Home Loan Banks are best positioned to continue to act on our mission and meet the needs of our members and the communities we serve.

In those initial listening sessions, and in the year since, the FHFA has heard from numerous System stakeholders as to the importance of our foundational liquidity mission, the stability of our cooperatives and the dependability of our community programs. Halfway through this endeavor, the importance of the Home Loan Banks was on full display when we answered the liquidity needs of our members during the turbulence of March 2023 – a real world exercise in why the Home Loan Banks matter, and why our role, and our presence, is critical to the stability of the U.S. financial system.

That message was made clear throughout a pair of recent editorials on the Federal Home Loan Bank System. In ‘The Home Loan Banks’ Mission is Vital. They Must Stay the Course’, which appeared in the American Banker on August 3, Michael M. Horn wrote:

“The Home Loan Bank System not only reduces risk in the broader financial system, but also helps foster a diverse and vibrant ecosystem of local lenders – one that does not exist in any other country. This means that virtually every community across the nation has access to a local lender.”

Mr. Horn would certainly know – he served as an Independent Director on our Board for a cumulative total of 30 years, including a decade as Board Chair, ultimately retiring in 2021 as perhaps the longest-serving Director in the history of the Federal Home Loan Bank System. He also served as the Commissioner of Banking for the State of New Jersey, as well as State Treasurer, so he brings a keen understanding of the importance of financial stability, and a firsthand view of just how the Home Loan Banks help provide it.

Writing in the Financial Times just over a week later, Mark Williams, a Master Lecturer at Boston University’s Questrom School of Business, and a former bank examiner for the Federal Reserve, also picked up on these key themes. In his August 14 piece, ‘The U.S. Banking Safety Net Has Proved Its Value’, Williams stated that “The role FHLBs play as an all-season liquidity provider and crisis shock absorber remains essential.”  He also warned that:

“Should the FHLBs’ role as on-demand liquidity provider be curtailed, the banking system would become more brittle and less liquid. The cost of member funding would increase, lending would decline, and higher rates would be borne by consumers and businesses nationwide.”

Mr. Williams’ point is key. The Federal Home Loan Banks do not exist only to serve our members in times of stress, as was the case in March 2023, but in all environments. The full scope of our role was the topic of the August 18 episode of the Forward Guidance podcast with Jack Farley. Michael Ericson, president and CEO of the Federal Home Loan Bank of Chicago, and F. Daniel Siciliano, vice chair of the Board of Directors of the Federal Home Loan Bank of San Francisco and a Stanford Law School Fellow, joined Mr. Farley for a wide-ranging conversation titled “The Banking System’s Guardian Angel You’ve Never Heard Of”. As the summary of the episode states, “few outside the banking world grasp the true importance of the Federal Home Loan Banks.” At just over 90 minutes, the conversation covers everything from our mission to our members to our collateral practices – a true primer on the System from a pair of experts.

The importance of the Federal Home Loan Banks has not just been recognized on the opinion pages and on podcasts, but also by the rating agencies. In its most recent report on the FHLBank System, released on July 31, S&P Global stated that it views the System “as one of the most important” U.S. government-related entities. In noting our “critical public policy role”, the report stated that “the recent banking turmoil highlighted the FHLB System’s importance to the U.S. banking sector.”

Just as Mr. Horn and Mr. Williams did in their editorials, in its report, S&P Global also recognized that the System faces uncertainty from potential changes in the future, and noted that:

“If initiatives were to gain momentum and target substantial changes to the FHLB System such that the role of the FHLB System in housing finance and as a liquidity provider for the U.S. banking system were diminished, we could lower our ratings on the System’s debt.”

In its individual report on the FHLBNY issued on the same day, S&P Global maintained its rating of AA+/Stable/A-1+ for our cooperative, and stated:

“During the recent banking sector turmoil, when some banks experienced significant deposit outflows, FHLB NY and the other FHLBs immediately provided liquidity to their members and managed their own funding needs. We expect FHLB NY and the other FHLBs to maintain their strong financial profiles and controls, provide for members’ additional liquidity needs, support the U.S. housing sector, stay profitable, and build retained earnings.”

That statement succinctly describes what the Home Loan Banks are meant to do: execute on our foundational mission in both calm markets and periods of stress, support housing and community development, and operate as stable and reliable cooperatives that our members can depend on. This is how we have operated for more than nine decades, and, as we look ahead to the release of the recommendations stemming from the FHLBank System at 100 initiative, it is how the System must continue to be positioned so that we are able to operate as such well into our second century.

 FHLBNY Announces 2023 Affordable Housing Program Grants

On August 22, we made our favorite announcement of the year, reporting on our annual Affordable Housing Program grants. This year, we announced $42 million in grants in support of 42 housing initiatives to help create or preserve 2,693 affordable homes across our District and beyond. Our team was especially excited to award three grants in the Caribbean – one in Puerto Rico and two in the U.S. Virgin Islands, the result of significant engagement by our Community Investment group, our Affordable Housing Advisory Council, the Housing Committee of our Board of Directors and, of course, the local organizations committed to delivering housing opportunities on the ground.

Each year, our annual AHP awards stand as a reminder that our ability to execute on our foundational liquidity mission delivers more than just funding to our region’s local lenders and stability to our financial system, but real, tangible and dependable support for vital housing initiatives across our District and beyond. That is because our AHP awards are funded directly through our earnings, and so as we continue to meet our members’ needs throughout the year, we also enhance our ability to meet the needs of the communities we all serve. The AHP also stands as a testament to the work of the many housing organizations and developers throughout our nation that are devoted to creating better opportunities for those who need them most. We are always grateful for our ability to partner with our members to support these efforts and help to create and preserve access to stable and affordable housing, the foundation from which individuals, families and communities grow and flourish.

2023 FHLBNY Director Election Update

We are also always grateful for the support the Affordable Housing Program receives from our Board, not just in approving the annual grant applications, but also in embodying this component of our mission. This year, seven of our 11 Member Directors represented institutions that partnered with us on a 2023 AHP grant – reflecting the deep commitment to the communities we serve that runs through not only our entire organization, but our membership, as well.

The FHLBNY’s Board is vital to all aspects of our operations, which why it is important for our members to participate in the annual Director Election.  We currently plan to launch the 2023 Director Election process for two Districtwide Independent Director seats and two New York Member Director seats next month. The FHLBNY has once again partnered with Survey & Ballot Systems to administer the transmission of ballots in connection with our 2023 director election. To assure your ballot email arrives safely in your email inbox on October 16, 2023, please (if you have not already done so) add the following email address as an approved sender:  [email protected]. Handling this matter ahead of time will help ensure a smooth election process.

Your participation in this year’s Director election process is greatly appreciated and will help continue to keep the Board and the FHLBNY diverse – and strong. If you have any election questions, please contact our general counsel, Paul Friend, at [email protected].

Sincerely,

José R. González
President and Chief Executive Officer

# # #

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.

Prior releases can be found on the SEC's EDGAR System.



03/05/2024

Report from the President: A Critical, Stabilizing Role

02/15/2024

Dividend Announcement 4Q23: FHLBNY Declares a 9.75% Dividend for the Fourth Quarter of 2023

01/09/2024

Report from the President: Looking at the Year Ahead

12/07/2023

Report from the President: Focusing on the Future

11/15/2023

Dividend Announcement 3Q23: FHLBNY Declares a 9.50% Dividend for the Third Quarter of 2023

11/02/2023

Report from the President: FHLBNY Announces Third Quarter 2023 Operating Highlights

09/05/2023

Report from the President: A Vital Mission, A Proven Value

08/17/2023

FHLBNY Declares an 8.50% Dividend for the Second Quarter of 2023

08/03/2023

Report from the President: One Year Into a 100-Year Review

07/11/2023

July 2023 Report from the President

06/06/2023

Report from the President: FHLBNY Announces 0% Development Advance Program

05/16/2023

Dividend Announcement 1Q23: The FHLBNY Declares a 7.75% Dividend for the First Quarter of 2023

04/04/2023

Report from the President: A Stabilizing Role

03/01/2023

Report from the President: Growing Advances and a Growing Public Profile

02/15/2023

Dividend Announcement 4Q22: The FHLBNY Declares a 7.50% Dividend for the Foruth Quarter of 2022

02/06/2023

Report from the President: Liquidity is the Mission and the Means

01/09/2023

Report from the President: A Profound Importance

12/01/2022

Report from the President: Grateful For Our Role

11/17/2022

Dividend Announcement 3Q22: The FHLBNY Declares a 6.75% Dividend for the Third Quarter of 2022

11/03/2022

Report from the President: FHLBNY Announces Third Quarter Operating Highlights

10/07/2022

Report from the President: The System’s Stakeholders Speak

09/01/2022

Report from the President: The Voice of the Local Lender

08/18/2022

Dividend Announcement 2Q22: The FHLBNY Declares a 5.50% Dividend for the Second Quarter of 2022

08/02/2022

Report from the President: Looking Ahead to 100 Years of the Federal Home Loan Banks

07/05/2022

Report from the President: Federal Home Loan Bank System Turns 90

06/02/2022

Report from the President: Approaching 90, the Power of Partnership Prevails

05/12/2022

Dividend Announcement 1Q22: The FHLBNY Declares a 4.75% Dividend for the First Quarter of 2022

04/05/2022

Report from the President: FHLBNY Files 2021 Form 10-K – Stability Throughout the Year

03/03/2022

Report from the President: Closing the Books on 2021

02/17/2022

Dividend Announcement 4Q21: The FHLBNY Declares a 4.36% Dividend for the Fourth Quarter of 2021

02/01/2022

Report from the President: Enhancing the Value of Membership

01/06/2022

Report from the President: A Strategic Focus on Stability and Service

12/07/2021

Report from the President: Together Again

11/18/2021

Dividend Announcement 3Q21: The FHLBNY Declares a 4.40% Dividend for the Third Quarter of 2021

11/02/2021

Report from the President: FHLBNY Announces 3Q21 Operating Highlights

10/04/2021

Report from the President: An Unwavering Focus on Our Members and Supporting Our Communities

09/01/2021

Report from the President: 25 Years of Creating Homeownership Opportunities

08/19/2021

Dividend Announcement 2Q21: The FHLBNY Declares a 4.60% Dividend for the Second Quarter of 2021

07/01/2021

Report from the President: FHLBNY Commences 2021 Director Election Process

06/07/2021

Report from the President: A Stable Partner for the Recovery Ahead

05/28/2021

Dividend Announcement 1Q21: The FHLBNY Declares a 4.75% Dividend for the First Quarter of 2021

04/05/2021

Report from the President: FHLBNY Files 2020 Form 10-K – Stability Throughout the Year

03/02/2021

Report from the President: Meeting Member Needs

02/18/2021

Dividend Announcement 4Q20: The FHLBNY Declares a 5.00% Dividend for the Fourth Quarter of 2020

02/04/2021

Report from the President: FHLBNY Unveils SOFR-Linked ARC Advance Enhancement

01/05/2021

Report from the President: A Proven Partnership to Help a Region Recover

12/02/2020

Report from the President: A Steady Foundation

11/19/2020

Dividend Announcement 3Q20: The FHLBNY Declares a 5.10% Dividend for the Third Quarter of 2020

11/02/2020

Report from the President: FHLBNY Announces 3Q20 Operating Highlights

10/05/2020

Report from the President: A Stable Partner and a Strong Culture

09/03/2020

Report from the President: A Stable Foundation

08/20/2020

Dividend Announcement 2Q20: The FHLBNY Declares A 5.60% Dividend For The Second Quarter Of 2020

08/04/2020

Report from the President: FHLBNY Announces 2Q20 Operating Highlights

07/02/2020

Report from the President: A Vital Conversation

06/02/2020

Report from the President: A Balanced Provider and a Stable Partner

05/20/2020

Dividend Announcement 1Q20: The FHLBNY Declares a 5.90% Dividend for the First Quarter of 2020

05/07/2020

Report from the President: FHLBNY to Accept Paycheck Protection Program Loans as Eligible Collateral

04/01/2020

Report from the President: Stability in a Crisis - Our Cooperative Responds to the Pandemic

03/13/2020

Report from the President: Novel Coronavirus Update

03/09/2020

Report from the President: Closing the Books on a Strong 2019

02/20/2020

Dividend Announcement 4Q19: The FHLBNY Declares a 6.35% Dividend for the Fourth Quarter of 2019

02/04/2020

Report from the President: United by Our Mission

01/06/2020

Report from the President: A Reliable Partner for a New Decade

12/03/2019

Report from the President: Positioned to Meet Your Liquidity Needs

11/21/2019

Report from the President: The FHLBNY Declares a 6.35% Dividend for the 3Q19

10/15/2019

Report from the President: The FHLBNY Announces 2019 Affordable Housing Program Grants

09/05/2019

Report from the President: A Market Milestone

05/16/2019

Dividend Announcement 1Q19: The FHLBNY Declares a 6.35% Dividend for the First Quarter of 2019

06/03/2019

Report from the President: Jersey City Welcomes FHLBNY Board; 2019 FHLBNY Director Election Update

07/02/2019

Report from the President: A New Era of Creating Homeownership Opportunities; FHLBNY Commences 2019 Director Election Process

08/15/2019

Dividend Announcement 2Q19: The FHLBNY Declares a 6.35% Dividend for the Second Quarter of 2019

04/02/2019

Report from the President: Reflecting on a Record Year for the Federal Home Loan Bank System; FHLBNY 2019 Member Symposium

03/04/2019

Report from the President: A Year of Strong Performance; FHLBNY Announces Fourth Quarter 2018 Dividend; 50th Round of Affordable Housing Program Opens

02/13/2019

Dividend Announcement 4Q18: The FHLBNY Declares a 6.90% Dividend for the Fourth Quarter of 2018

02/04/2019

Report from the President: Engaging Members, Enhancing Value

01/03/2019

Report from the President: A Strong Year, A Strategy for Success

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