NY FHLBank to Resume Paying Dividends

The New York Federal Home Loan Bank has rebuilt its retained earnings and will resume paying normal dividends this year, according to the bank's president, Alfred DelliBovi.The FHLBank has reached its retained earnings target of $196.5 million with the payout of a 3.05% dividend for the fourth quarter. "With adequate retained earnings now accumulated, we anticipate paying out higher dividends the remainder of 2005," Mr. DelliBovi says in a letter to stockholders. In the third quarter of 2003, the New York bank took a $183.0 million loss on the sale of credit-impaired manufactured housing securities and did not pay a dividend. The FHLBank paid an average dividend of 1.83% over the next four quarters.