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| file | filename |
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| 8-K - FORM 8-K - Federal Home Loan Bank of New York | d265481d8k.htm |
 ©
2016 FEDERAL HOME LOAN BANK OF NEW YORK • 101 PARK AVENUE • NEW YORK, NY 10178 • WWW.FHLBNY.COM Strong Performance for Members, Well-Positioned for the Future Meeting with New York Stockholders September 26, 2016 Exhibit 99.1 |
 FHLBNY 2 » “Advances Bank” strategy » Strong performance record for customers and shareholders » Conservatively positioned balance sheet » FHLBank System’s financial results continue to improve since the financial crisis Key Messages |
 FHLBNY FHLBNY Is the Third Largest FHLBank Ranked by Advances Total Advances ($ Billions) Change in Advances: 2Q07 vs 2Q16 Data as of 6/30/2016 3 $0 $20 $40 $60 $80 $100 $120 TOP IND DAL BOS CHI SFR PIT CIN NYK ATL DSM -100% 0% 100% 200% 300% 400% 500% TOP IND DAL BOS CHI SFR PIT CIN NYK ATL DSM |
 FHLBNY Core Mission Assets Are the Foundation of our Balance Sheet 4 Balance Sheet by Type of Assets Note: Data as of 6/30/2016; ranked by Core Mission Assets (Advances plus MPF)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% PIT CIN NYK ATL DSM TOP IND BOS CHI SFR DAL Advances MPF/MPP MBS Other Investments Cash and Other |
 FHLBNY 5 FHLBNY’s Member Base and Borrowers Are Diverse Total Advances (Par) = $94.4 B Top Borrowers Member Type Data as of June 30, 2016 Our New York members held $78 billion in advances at quarter-end Top 5 Borrowers $53.1 All Other Borrowers $28.2 Next 5 Borrowers $13.1 Commercial Bank 138 Credit Union 87 Savings Bank 86 Insurance Company 11 CDFI 2 |
 FHLBNY The FHLBNY’s Financial Performance Has Been Strong Notes: All $ millions. *Dividends paid during calendar period. 6 FHLBNY - Financial Results Highlights June 30, December 31, December 31, December 31, 2016 2015 2014 2013 Period End Balances Advances $95,273 $93,874 $98,797 $90,765 MBS Investments 14,387 14,065 13,552 13,373 Mortgage Loans 2,631 2,524 2,129 1,928 Total Assets 128,726 123,248 132,825 128,333 Consolidated Obligations 119,972 114,576 123,580 119,146 Retained Earnings 1,323 1,270 1083 999 Capital Stock 5,666 5,585 5,580 5,571 Results Net Interest Income $256 $554 $444 $421 Operating Expenses 49 103 86 83 Net Income 175 415 315 305 Dividend Rate* 4.58% 4.22% 4.19% 4.12% |
 FHLBNY HLBNY’s Expense Management Has Been Prudent 7 Operating Expenses as a % of Average Total Assets – 2Q 2016 Note: Operating expenses include compensation, benefits and other expenses, excluding FHFA and OF assessments.
0.00% 0.02% 0.04% 0.06% 0.08% 0.10% 0.12% 0.14% 0.16% 0.18% 0.20% CIN DSM PIT NYK ATL TOP BOS IND DAL SFR CHI |
 FHLBNY 8 Our Dividends Have Been Reliable and Exceeded Market Reference Rates FHLBNY Dividend History 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 FHLBNY Dividend 3 Month Libor Fed Funds (Effective Rate) |
 FHLBNY FHLBNY Dividends Have Been the Highest Among the FHLBanks 9 0% 1% 2% 3% 4% 5% SEA DAL CHI BOS PIT ATL DSM TOP IND SFR CIN NYK Average HLB Dividend Rates 2009-2015 |
 FHLBNY Our Strategic Objectives Balance: Achieving Returns, Managing Risk, Enabling Growth and Managing for the Long-term 10 1. Provide value to the membership through relevant, mission-oriented products and services and appropriate risk adjusted returns on capital stock 2. Protect the par value of member stock from risk and uncertainties and work to ensure the System’s long-term viability 3. Support the growth of the co-operative by pursuing business relationships with members/ prospects and pursuing community investment/outreach opportunities 4. Prepare for future operating environments by enhancing opportunities for employees 5. Adopt technical design strategies that optimize cost, efficiency and resiliency Strategic Plan 2016–2018: Strategic Objectives |
 FHLBNY 11 The Theme for our Strategy is “Evolve From a Strong Base” Our Current Position is Strong • “Core mission” focused balance sheet • Strong earnings generation capability • Diversified membership, advances demand & local economy • Strong investor demand for FHLBank debt Threats/Opportunities to Watch • Global economic conditions & member margins • Debt market liquidity and FHLBank funding spreads • Other wholesale funding sources • New regulations • Member mergers |
 FHLBNY FHLBank Balance Sheets Are Scalable to Meet Member Liquidity Needs 12 FHLBank System Advances Balances 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 FHLB System |
 FHLBNY System Advances Have Grown Nicely in Recent Years FHLB System Change in Advance Balances 13 6.7% 3.4% 36.6% 6.1% -32.0% -24.2% -12.6% 1.8% 17.1% 14.5% 11.1% 8.8% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1H 16 |
 FHLBNY System Financial Performance Has Improved Considerably Since the Financial Crisis FHLBank System Net Income: 2001- 1H 2016 ($Millions) FHLBank System ROE: 2001- 1H 2016 14 Note: Results include gains on PLMBS litigation settlements :$600mm in 1H 2016, $688mm in 2015, $134mm in 2014.
$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1H 16 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1H 16 |
 FHLBNY Since the Crisis, System Retained Earnings Have Grown 4x While Assets Have Declined 24% 15 FHLBank System: Retained Earnings Growth Notes: URE = Unrestricted Retained Earnings. RRE = Restricted Retained Earnings.
Retained earnings and capital stock are defined on a regulatory basis.
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% $- $2 $4 $6 $8 $10 $12 $14 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1 2016 Q2 2016 RRE (LHS) URE (LHS) %RE/Capital Stock (RHS) |
 FHLBNY 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% CHI SFR BOS NYK ATL CIN PIT DAL IND TOP DSM GAAP Regulatory All FHLBanks Exceed Minimum Capital Requirements FHLBanks Capital-to-Assets Ratio As of June 30, 2016 16 |
 101
PARK AVENUE • NEW YORK, NY 10178 • WWW.FHLBNY.COM Advancing
Housing and Community Growth The
information provided by the Federal Home Loan Bank of New York (FHLBNY) in this communications is set forth for informational purposes only. The information should not be construed as an opinion, recommendation or solicitation regarding the use of any financial strategy and/or the purchase or sale of any financial instrument. All customers are advised to conduct their own independent due diligence before making any financial decisions. Please note that the past performance of any FHLBNY service or product should not be viewed as a guarantee of future results. Also, the information presented here and/or the services or products provided by the FHLBNY may change at any time without notice. Questions? |
 Member Business Update September 26, 2016 © 2016 FEDERAL HOME LOAN BANK OF NEW YORK • 101 PARK AVENUE • NEW YORK, NY 10178 •
WWW.FHLBNY.COM |
 FHLBNY Our Mission: To advance housing opportunity and local community development by
supporting members in serving their markets.
Federal Home Loan Bank of New York
Corporate Profile
19
Our Vision:
To be a balanced provider of liquidity to members in all operating
environments. Our Business Lines:
|
 FHLBNY FHLBNY Business Update (350) (300) (250) (200) (150) (100) (50) 0 50 ATL DSM TOP SFR DAL CHI CIN IND PIT BOS NYK Net Membership Changes by FHLBank District from 2008 to 2Q16 FHLBNY Membership Trends While membership at the FHLBNY and across the Federal Home Loan Bank (FHLBank) System is down due to M&A and
failures, the FHLBNY has increased its membership (at a declining
pace) during a difficult operating environment. FHLBNY
New Members by Type 20
327 250 260 270 280 290 300 310 320 330 340 350 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2Q16 0 5 10 15 20 25 30 35 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2Q16 Commercial Bank Credit Union Insurance Co. CDFI HFA Thrift |
 FHLBNY $50 $60 $70 $80 $90 $100 $110 The Fundamentals of the Business Remain Strong! $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 $600 $650 $700 Over time, members’
Funding Gap has widened creating a need for wholesale funding
where the FHLBNY maintains a dominate share of the
market. Members’
Funding Gap
2002-2Q16
Members’
Advances Outstanding
2006–2Q16
21
All members except Citibank, HSBC Bank USA, Goldman Sachs Bank, Morgan Stanley Private
Bank N.A, Insurance Companies, CDFIs,10-
Bs/HFAs, and non-members |
 FHLBNY Advances Outstanding by Institution Type $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 $110 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2Q2016 Savings Bank/Thrifts Commercial Banks Insurance Companies Credit Unions 10bs Total Advances Outstanding More Diverse Book of Business Historical: Advances Outstanding by Institution Type TOP 10 BORROWERS ($BILLIONS) Customer Name Advances 2Q16 YTD Change Citibank, N.A. $15.550 +$0.800 Metropolitan Life Insurance Co. $13.895 +$1.325 New York Community Bank $11.027 ($1.673) HSBC Bank USA $6.700 +$1.100 First Niagara Bank $5.317 ($0.208) Investors Bank $3.757 +$0.632 Goldman Sachs Bank $2.425 ($0.500) Signature Bank $2.380 ($0.340) Astoria Bank $2.374 +$0.194 M&T $1.352 ($1.750) Total of Top 10 Borrowers $64.777 ($0.420) Total Advances Outstanding $94.397 +$0.859 Top 10 as a % of Total Advances 69% - 2006-2Q16 The FHLBNY advance book is comprised of a more diverse group of institution types.
22 |
 FHLBNY -80 -60 -40 -20 0 20 40 60 80 100 120 140 1 Month 3 Month 1 Year 2 Year 3 Year 5 Year 7 Year 10 Year 6/29/07 COF Curve 3/31/09 COF Curve 3/30/12 COF Curve 8/31/2016 COF Curve FHLBank Debt Issuance Trends A volatile and complex market has impacted the FHLBNY’s cost of funds (COF) to LIBOR.
Our debt is moving in tandem with Treasuries demonstrating strong
investor demand. History of Consolidated Obligations
Against LIBOR Since June 2007
5-Year
FHLBank
Cost
of
Debt
vs.
5-Year
Treasury
23
0.0 0.5 1.0 1.5 2.0 2.5 0.0 1.0 2.0 3.0 4.0 5.0 6.0 5Y Spread 5Y Treasury 5Y FHLBank Debt Linear (5Y FHLBank Debt) |
 FHLBNY FHLBNY Advance Rates Remain Attractive FHLBNY Advance Curve Fixed-Rate Advances are at Historic Lows By harnessing the power of our GSE status and credit rating,
we are able to swiftly and cheaply manufacture money for our
members. 24 |
 FHLBNY $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $2,200 $2,400 $2,600 $2,800 $3,000 $3,200 $3,400 $3,600 $3,800 $4,000 $4,200 $4,400 $4,600 $4,800 $5,000 $5,200 $5,400 $5,600 $5,800 $6,000 $6,200 $6,400 $6,600 Community Lending Program (CLP) 25 Project Specific Uses of CLP Advance » Equipment Purchase for Small Business Expansion » Debt Refinancing for Small Businesses » Debt Consolidation for Small Businesses » Handicapped- Accessible Vans » Fire Stations and Trucks » Grocery Stores » Retail Stores » Educational Facilities » Healthcare Facilities » Office Buildings » Daycare Centers » Origination of single- family mortgages Commercial/Economic Development Housing » Refinancing of single- family mortgages » Financing of housing projects: – Property acquisition – Construction – Permanent financing – Re-financing – Renovation/ Rehabilitation – Home Improvement CLP Advances continue to grow as members find value in the program.
Total CLP Advances (Daily Average)
11/8/12
–
FHLBNY initiates
Disaster Relief Funding
program (DRF), designed for
Members to assist in rebuilding
communities affected by
Superstorm
Sandy. FHLBNY
allocates $1B in low-cost
funding. Program closed
12/31/13. |
 FHLBNY New Product Development 26 Combines a fixed-rate borrowing with an embedded interest-rate cap in which the rate remains fixed but may be reduced quarterly if 3-month LIBOR rises above the pre-selected cap (with a floor of zero). PRODUCT FEATURES »For liability-sensitive members, the Fixed-Rate Advance with a LIBOR Cap can help
combat net interest margin pressure
»The feature of the embedded cap will provide additional
protection against rising short- term interest
rates by lowering an institution’s cost of funds as rates rise »Flexible medium-to long-term funding option best used to extend liabilities, potentially enhance spreads, and preserve margins Members now have the ability to add symmetry to certain advances with maturities of one
year or greater. The SPA feature allows members to receive
compensation for favorable changes in the Fair Value
of an advance. The Symmetry feature will be available
at the time of booking an advance transaction at a
rate
of an additional two basis points over an advance without symmetry. The Advance Rebate Program was developed to reduce the prepayment expense
associated with restructuring advances, and provide an incentive
for members to retain their wholesale funding with
the cooperative. The Rebate Program is an enhancement
to the FHLBNY’s advance prepayment methodology
and could provide members with up to 17 bps cash rebate (15 bps for Repos) on a portion of the fees paid relating to the early extinguishment of eligible
advances when:
1
Advances booked under the Community Lending Program
and advances with remaining maturities of less than one year are not Eligible Advances. The FHLBNY’s regular advance terms and conditions will apply, and the FHLBNY reserves the right in its sole discretion to amend, rescind, or reinstate the Rebate Program at any time. 2 If the 30th calendar day falls on a weekend or a banking holiday, the deadline will default to the next business
day. Prepaid advance(s)
have a remaining term
of one year or longer
1
New eligible advance(s)
are obtained within 30
calendar
days
of
the
advance prepayments
2
New replacement
advance(s) have a term
of six months or longer
3
+
+ Symmetrical Prepayment Advance (SPA) Feature Advance Rebate Program Fixed-Rate Advance with a LIBOR CAP Callable Advance A Fixed-Rate Advance that gives members the option of calling (terminating) the advance
on predetermined dates, prior to maturity, without incurring a
prepayment fee. The product offers built-in
prepayment options that can reduce interest rate risk and prepayment risk at minimal added cost. A great way to fund fixed-rate mortgages by taking advantage of downward
movements
in
interest
rates
and
steep
yield
curves.
PRODUCT FEATURES
»Fixed rate for the life of the advance
»No prepayment fee when called on specified date
»Better cash flow match for fixed-rate mortgages and
commercial loans held in portfolio »Whole loan
and security collateral is acceptable Helping members
prepare for a rising rate environment. 1
2 AVAILABLE SPA ADVANCE STRUCTURES Terms One year up to 30 Years (term dictated by individual product parameters) Minimum Transaction Size $3 Million Minimum Partial Prepayment Size $3 Million Advance Types with Symmetrical Prepayment Feature Fixed-Rate Advances Exclusions Amortizing , Putable, Callable, Adjustable-Rate Credit and Community
Lending Program Advances |
 FHLBNY JANUARY 2015 Launched Products and Services Committee (PSC) APRIL 2015 Launched first Special since 2009 (Launched second in November) 27 In an effort to serve the evolving needs of our members, the FHLBNY
will continue to add value to the cooperative though innovation and
flexibility. Recent Enhancements
MEMBERSHIP
COLLATERAL
PRODUCT
2015
2016
JUNE 2015
Introduced new
fully Integrated
1LinkSK
Safekeeping
Platform
APRIL 2016
Launched
Symmetrical
Prepayment
Advance option
AUGUST 2016
Launched
ARC with No
Minimum
Coupon
FEBRUARY 2015
Launched
campaign
targeting P&C
insurance
companies
after becoming
eligible in 2014
SEPTEMBER 2015
Launched
Putable
Advance
Re-modification
Program
SEPTEMBER 2015
Updated US VI
law to allow use
of FHLBNY Letters
of Credit as
collateral for
public/
government
deposits
DECEMBER 2015
Launched
Advance
Rebate Program
SEPTEMBER 2015
First P&C
insurance
company
becomes a
member:
American Home
Assurance
SEPTEMBER 2015
Began
accepting
split-rated
private label
CMBS
INFRASTRUCTURE
OCTOBER 2015
California laws
were modified to
allow FHLBNY
MULOCs as
acceptable
collateral for
Municipal
Deposits
DECEMBER 2015
Began
accepting
insurance
companies
with rating of
A-
stable from
rating agencies
APRIL 2016
Enhanced
Community
Lending Program
limits and
exceptions
JANUARY 2015
Began
accepting
whole loan
mortgage
collateral from
insurance
companies |
 101 PARK AVENUE • NEW YORK, NY 10178 • WWW.FHLBNY.COM
Advancing Housing and Community Growth
Adam Goldstein
SVP, Chief Business Officer
212-441-6703
goldstein@fhlbny.com
The
information
provided
by
the
Federal
Home
Loan
Bank
of
New
York
(FHLBNY)
in
this
communications
is
set
forth
for
informational
purposes
only.
The
information
should
not
be
construed
as
an
opinion,
recommendation
or
solicitation
regarding
the
use
of
any
financial
strategy
and/or
the
purchase
or
sale
of any financial instrument. All customers are advised to conduct their own independent due diligence before making any financial decisions. Please note that the past performance of any FHLBNY service or product should not be viewed as a guarantee of future results. Also, the information presented here and/or the services or products provided by the FHLBNY may change at any time without notice. |