The Federal Home Loan Bank of New York ("FHLBNY") is pleased to announce that, on August 16, 2012, its Board of Directors ("Board") approved a dividend rate for the second quarter of 2012 of 4.50% (annualized).  The FHLBNY's dividend rate for the first quarter of 2012 was 4.50%. The dollar amount of the second quarter of 2012 dividend will be approximately $51.5 million.  The cash dividend will be distributed to member financial institutions on August 17, 2012.

"The team at the Federal Home Loan Bank of New York is focused on ensuring that the FHLBNY is a stable and reliable partner for our members," said Alfred A. DelliBovi, president and CEO of the FHLBNY.  "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 FHLBNY'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.  The FHLBNY will continue to maintain retained earnings at calibrated levels to help ensure future regulatory compliance and provide additional protection for the capital investment of its 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 FHLBNY'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.