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| 8-K - FEDERAL HOME LOAN BANK OF NEW YORK - Federal Home Loan Bank of New York | form_8-k.htm |
January
5, 2021
TO:
All
Stockholders
(Addressed
Individually)
SUBJECT:
Report from the
President
A Proven Partnership to Help a Region Recover
We
begin the new year just as we ended 2020: with our nation still
grappling with a pandemic, and our region struggling through a
health crisis that has caused an economic crisis. But we also carry
over something else into 2021: the stable partnership between the
FHLBNY and our members, a partnership that will continue to help
communities across our District respond to and recover from the
pandemic.
In
2020, our cooperative was a source of stability in as volatile an
operating environment as our nation has ever experienced. In March,
as our nation and the financial markets first reacted to the
pandemic, our advances grew by $41 billion to a record $134
billion, an increase of 44 percent. While our advances balances
declined to $90 billion at year-end, our members continued to look
to us as a reliable source of liquidity amid a turbulent market.
Our mission is to be there when members need us, and at the onset
of this crisis and throughout the year, we were.
Since
March, we have seen our members rise to meet the challenges this
pandemic has presented, supporting communities and customers across
our region that are facing down a crisis. Our COVID-19 Relief
Program, which we launched on May 1, was developed to support these
efforts, and reflects our cooperative’s ability to respond
whenever disaster strikes. This included our Small Business
Recovery Grant Program, which members accessed to provide $8
million in grant funding to 750 small businesses and nearly 500
non-profits in communities across our District. These grants were
able to make a tangible impact in the lives and livelihoods of so
many, helping businesses keep their doors open and their people
employed, and supporting non-profits as they continue to provide
aid amid the pandemic.
Our
members also continued to access the full value of Home Loan Bank
membership to provide additional resources during a challenging
year. This includes participating in our housing programs. In
November, we announced $36.9 million in grants for our 2020
Affordable Housing Program round, joining with our members to
create, preserve or rehabilitate more than 3,100 units of
affordable housing. Our members also accessed nearly $18 million in
grants in 2020 through our homeownership set-aside programs,
helping to create homeownership opportunities for households and
families in the middle of a pandemic. We are grateful to our
members for their continued use of our housing programs, working
with us and our housing partners to help create housing stability
in a year that challenged so many.
In a
year in which so many institutions operated from a fully or
partially remote posture, communication became more vital than
ever. Throughout the year, we remained engaged with our members
through a number of channels, both old and new. We launched our
Member Services Desk Weekly Market Update, a new member
communication that curates key information around market trends,
advance rates observations and the views of our economist, Brian
Jones. We also held 20 member webinars throughout the year, on
topics ranging from the LIBOR transition to COVID-19 collateral
practices to ALM strategies during a crisis, bringing experts in to
provide their insight on these important matters. We have focused
on developing these new lines of communication as a way to continue
to deliver value to our members. And through our Relationship
Managers and Member Services Desk, we have remained in constant
contact with our membership throughout the pandemic.
This
crisis stretches across our entire District, impacting every region
and community in different ways. But our communities have always
looked to their local lenders in good times and bad, and it will be
through the support of these local lenders that these communities,
and our District, will recover.
The
local lender is truly a vital and committed part of every community
across our country, and essential in this time of crisis. This is
why our partnership with our members, and our ability to provide
the products and programs members rely on to help meet the needs of
your customers and communities, is so important. Our members know
that, through the FHLBNY, they will have uninterrupted access to
liquidity through whatever market conditions await us in the year
ahead. Our members know that the 2021 rounds of our Affordable
Housing Program and Homebuyer Dream Program will provide access to
grants that will help them continue to create housing opportunities
across our region, and that enhancements we have made to our
Community Lending Programs for 2021 better position our cooperative
to respond to our District’s needs. Our members know that our
Mortgage Asset Program will help them take advantage of record
mortgage origination activity by providing a secondary market
outlet for members to fund mortgages and be competitive in offering
fixed-rate mortgage loan products. And our members know that we
will continue to engage them throughout the year, virtually and,
eventually, again in person, to ensure that we continue to meet
your needs and help you serve your customers. In sum, in 2021, our
members can expect a stable and reliable funding partner, a strong
supporter of the communities we serve, and a dedicated team that is
focused on delivering the full value of membership to our
membership every day.
At the
Federal Home Loan Bank of New York, we were proud to serve as your
reliable partner in 2020, as challenging a year our nation has ever
faced. As our nation and our region look to move out of the
pandemic and into recovery, we are positioned to continue to
support our members as you continue to support your customers and
communities in the year ahead.
Sincerely,
José
R. González
President
and Chief Executive Officer
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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.
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