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Federal Home Loan Bank of New York Declares a Second Quarter Dividend of 6.50%

2008-07-17 13:28:00

    NEW YORK, July 17 /EMWNews/ -- The following dividend and unaudited

results statement is being issued by the Federal Home Loan Bank of New


    I am pleased to report that our Board of Directors has approved the

dividend rate for the second quarter of 2008 of 6.50% (annualized). The New

York Home Loan Bank's dividend rate for the first quarter of 2008 was

7.80%. The dollar amount of the second quarter dividend will be

approximately $79 million. The cash dividend will be distributed to member

financial institutions on July 31, 2008.

    The FHLBNY's retained earnings as of July 31, 2008, after the dividend

payment, will be approximately $341 million. Using published numbers for

the quarter ended March 31, 2008, the Federal Home Loan Banks had just

under $3.8 billion in retained earnings. New York's share was 11.4% of that

total, up from 11.3% at the end of 2007. As the third largest Federal Home

Loan Bank, New York's retained earnings were the third highest dollar

amount and the third highest as a percent of total assets. The dividend

reflects the New York Home Loan Bank's low-risk profile and conservative

investment strategy.

    Future dividend rates may be significantly different from the current

rate as a result of a number of factors including the effects of

derivatives accounting (SFAS 133), overall interest rates, demand for our

products, and our ability to achieve targeted returns on our investments.

    Second Quarter 2008 Balance-Sheet Highlights

    Total assets were $118.1 billion on June 30, 2008 compared to $108.5

billion at the March 31, 2008. Advances increased to $90.8 billion,

compared to $85.9 billion on March 31, 2008, and represented 77% of total


    The Federal Home Loan Banks were created by Congress to supply

reliable, low-cost funding to community member lenders in all business

cycles. The sustained increase in advances demonstrates the important role

we play as we help community member lenders serve their neighborhoods

regardless of the economic environment.

    For the six months ended June 30, 2008, the Home Loan Bank had net

income of

    $174.2 million, representing a 23% increase in net income as compared

to the $141.9 million for the first half of 2007.

    Investments and short-term money-market instruments rose to $25.4

billion at

    June 30, 2008, up from $20.5 billion on March 31, 2008. Mortgage assets

were at $1.46 billion at June 30, 2008, about the same as the end of the

first quarter, and represented less than 1.3% of total assets. Capital rose

to $5.3 billion on June 30, 2008, compared to $4.8 billion on March 31,



    Alfred A. DelliBovi


    CONTACT: Eric Amig at 212-441-6807, [email protected]

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