NEW YORK, Nov. 19 /PRNewswire-HISPANIC PR WIRE/ — The Federal Home Loan Bank of New York (“FHLBNY”) announced that, earlier today, November 19, 2009, its Board of Directors approved a dividend rate for the third quarter of 2009 of 5.60% (annualized). The FHLBNY’s dividend rate in each of the first and second quarters of 2009 was 5.60%. The dollar amount of the third quarter dividend will be approximately $75 million. The cash dividend will be distributed to member financial institutions on November 20, 2009.
The dividend reflects the FHLBNY’s low-risk profile and conservative investment strategy. The payout represents approximately 54% of GAAP net income for the quarter. The remaining 46% of net income will be put in the FHLBNY’s retained earnings to help further ensure that its members’ capital investment is protected. The FHLBNY has seen increased earnings volatility across the economy, and believes that adding to its retained earnings to increase the cushion to absorb future earnings swings and stabilize future dividends is the prudent response to such volatility. After the dividend payment, unrestricted retained earnings as of September 30, 2009, will be approximately $591 million.
The FHLBNY plans to continue to build retained earnings at a measured pace. The FHLBNY will continue to work to keep its member lenders’ investment in the cooperative safe as it promotes an even stronger Home Loan Bank/community bank lending network.
CONTACT: Eric Amig, (212) 441-6807
Brian Finnegan, (212) 441-6877
SOURCE Federal Home Loan Bank of New York