Table of Contents

Throughout 2015, the Federal Home Loan Bank of New York (FHLBNY) demonstrated our ability to identify, respond to and overcome challenges. We faced continued volatility in the markets, a flurry of unprecedented prepayment activity, several significant member mergers, a shift in the advances activity of some of our top borrowers and increased competition from various sources. And yet, 2015 was another successful year for our franchise. We performed well throughout the year, provided a consistent and attractive quarterly dividend, developed innovative products and policies to enhance the value of membership and served as a steady and reliable partner for our members. Our continued success stems from the “strength, stability and sustainability” of our franchise, three areas on which we focused in 2015.

The true strength of our franchise comes from two sources: our members and our people. Our members are well-managed, conservative lending institutions with a strong knowledge of their customers and their territory. Ours is a diverse membership, spanning institutions that operate in the global arena to those which are centralized in a single town, all bound together by a common focus on a brighter, more vibrant future for the communities they serve. In 2015, we added 11 new members and expanded our membership to include property and casualty insurance companies, further diversifying our cooperative.

It is our members’ use of advances that drives our performance. We closed 2015 with the second-highest level of advances in the Federal Home Loan Bank System with $93.9 billion flowing through communities across New Jersey, New York, Puerto Rico and the U.S. Virgin Islands. We are an Advances Bank, and our model is based on providing a daily source of funding for our members. But the performance of our advances book was particularly notable in 2015

because of the volatility we experienced related to heightened prepayment activity and completed or announced large member mergers throughout the year. In total, due to a combination of mergers, balance sheet restructurings and responses to regulatory requirements, a small number of members – including six of our top 10 borrowers at year-end 2014 – decreased their borrowings by approximately $20 billion in 2015. However, these declines were largely offset by a wide range of members that increased advances during the year. This activity was driven by long-tenured members, but we also experienced significant interest from first-time and returning borrowers. At the end of the year, three of our top ten borrowers were not among the top ten borrowers at year-end 2014. This reflects just how important the diversity of our membership is to our cooperative and how all of our members contribute to our success.

In 2015, this success translated into net income of $414.8 million, an increase of $99.9 million, or 31.7 percent, from net income of $314.9 million for 2014. Prepayment activity helped drive these results, which is reflected in the significant increase in net income during the fourth quarter, when we earned $168.4 million, an increase of $91.4 million from the same period in 2014. However, our results were consistently strong throughout 2015, as made evident in our quarterly dividend. In each of the first three quarters of 2015, we paid a 4.10 percent dividend to our members, before increasing this dividend to 4.65 percent in the fourth quarter – distributing more than $225 million in dividends to our members from our 2015 income. We believe a dividend that is fair, reasonable and consistent is part of the reliability we provide to our members.

The Federal Home Loan Bank System also performed well throughout 2015, with income

of $2.9 billion, a record for the System and an increase of 27 percent from 2014. Each of the 11 Federal Home Loan Banks reported positive earnings for the year. And, most importantly, System-wide advances grew by 11 percent during the year, finishing 2015 with $634 billion in funding across the United States.

The Federal Home Loan Bank System’s performance in 2015 represents the third straight year of double-digit advances growth System-wide. It is also reflective of the stability that we strive to promote within our own cooperative. That stability begins with our people. On average, our employees have nine years of experience

working with our franchise; our team here includes 99 employees with more than 10 years of service to the cooperative, and 33 employees with more than 20 years of service. Combined, our Executive Leadership has more than 200 years of service to the Federal Home Loan Bank System. All of that experience builds and strengthens a culture wherein our 273 dedicated employees come to work each day with a focus on meeting the needs of our members and acting on our mission. This focus is supplemented by our knowledgeable and active Board of Directors, which is comprised of leaders in the community banking industry and independent directors who bring an extraordinary range of professional

experience and vast expertise relevant to our mission and operations. The guidance management receives from the Board continues to help the FHLBNY perform well.

Our stability is also reflected within the support we provide to our members every day. In 2015, we celebrated the 20th anniversary of our First Home Club^sm, a program we developed on our own that has since served as a model for similar programs across the Federal Home Loan Bank System. This past year also marked the 25th anniversary of making our first Affordable Housing Program grants in 1990. In the years that have passed, the Affordable Housing Program has become a trusted source of funding for affordable housing partners across the region and a key tool our members employ to make a significant, positive and lasting difference in their communities. That these programs have existed and operated at such a high level – and that they are funded directly from our earnings – is reflective of the stability of our franchise.

With our substantial earnings and steady dividend, our strength and stability was on display in 2015. But we also worked towards ensuring that this strength and stability is sustainable. Throughout 2015, we took steps to better identify and respond to member needs through innovation. In March 2015, we created our Products & Services Committee, a group representing various functions from across the FHLBNY, which has helped us develop more

innovative ways to support our members as they navigate the changing economic environment. In April, and then again in the fourth quarter, we launched a set of well-received Advance Specials, which offered reduced rates on some of our longer-term advance products. In October, we enhanced our Advance Modification Program. And in December, we enhanced our prepayment methodology with the creation of an advance prepayment Rebate Program, the first of its kind in the Federal Home Loan Bank System.

All of this was done against the backdrop of the year-long development of the FHLBNY’s 2016-2018 Strategic Plan. The effort to develop this three-year plan was led by the Board’s Strategic Planning Committee and the FHLBNY’s internal Strategic Planning Team, drawing on the knowledge and expertise of employees from every function of the FHLBNY. In following this strategy, we remain focused on being a balanced provider of liquidity to members in all operating environments. And we remain committed to the principles that guide us: the decisions we make that benefit our cooperative, uphold our integrity, support our communities and advance our people.

Throughout 2015, our focus on enhancing member value is what drove our success. Our well-defined strategy, our diverse membership, our dedicated people and our meaningful mission positions our cooperative for the future. The strength, stability and sustainability of our cooperative are all part of the value of membership at the FHLBNY.

CHAIR

Peter Elkowitz

President & CEO

Long Island Housing Partnership, Inc.

Hauppauge, New York (2015)

VICE CHAIR

Bernell Grier¹

Chief Executive Officer

Neighborhood Housing Services of

New York City

New York, New York (2015)

Notes:

Terms expire on December 31 of years indicated

¹Resigned October 2015

Deborah Boatright

Regional Director

NeighborWorks America / Northeast Region

New York, New York (2017)

Susan Cotner

Executive Director

Affordable Housing Partnership

Albany Community Land Trust

Albany, New York (2017)

Robert Di Vincent

Executive Director

West New York Housing Authority

West New York, New Jersey (2017)

Melody Federico

Chief Real Estate Officer

NewBridge Services, Inc.

Pequannock, New Jersey (2016)

Tyrone Garrett

Executive Director

Long Branch Housing Authority

Long Branch, New Jersey (2017)

Daniel Kelly

President

Community Quest

Egg Harbor Township, New Jersey (2016)

Colin McKnight

Deputy Director

New York State Rural Housing Coalition

Albany, New York (2017)

Carrie Michel-Wynne

Director of Housing

YWCA of Rochester & Monroe County

Rochester, New York (2016)

Faith Moore

Executive Director

Orange County Rural Development Advisory Council

Walden, New York (2016)

Maria Rodriguez-Collazo

Director of Housing Programs

PathStone Corporation

Ponce, Puerto Rico (2016)

Gary van Nostrand

President/Chief Executive Officer

SERV Behavioral Health System, Inc.

Ewing, New Jersey (2015)

It is our belief that the stability that homeownership provides can create a foundation that leads to stronger communities, increased civic engagement and improved educational achievement for children. Our First Home Club was developed with the aim of improving homeownership opportunities across our District. In 2015, we marked the 20^th anniversary of the First Home Club, which we developed on our own to meet a need that we saw in the communities our cooperative serves: too often, down payments and closing costs were acting as barriers to homeownership for otherwise qualified borrowers. In establishing the First Home Club, we created a non-competitive set-aside of our Affordable Housing Program to provide down payment and closing cost assistance through matching grants. We now offer grants of up to $7,500, matching $4 for each $1 saved in a dedicated account to an eligible first-time homebuyer purchasing a home and obtaining a mortgage through one of our members. Also available is an additional $500 toward the defrayment of non-profit housing agency counseling costs.

In 2015, the First Home Club ushered in 1,845 new homeowners, including Bradley and Rebecca Barlow,

who closed on their new home in West Milford, New Jersey in July 2015. The Barlows were renting a one-bedroom condo and saving towards their first home when, in September 2014, their mortgage representative at Investors Bank suggested they enroll in the First Home Club. The First Home Club requires participants to complete a homebuyer counseling program, which the Barlows considered to be one of the benefits of the First Home Club. The couple attended courses at the Central Jersey Housing Resource Center, where they received information on the issues involved in mortgage financing and owning a home. In July 2015, the Barlows achieved their goal of homeownership, which has provided the key benefits of more space and a backyard for their growing family.

In the 20 years since the program’s first dollar was matched, we have made more than $78 million in grants to help more than 11,000 households, just like the Barlows, achieve the dream of homeownership. And with more than 6,000 households currently participating in the First Home Club, we know that this program will continue to succeed for decades to come.

José R. González

President & CEO

SENIOR VICE PRESIDENTS

Eric Amig

Head of Bank Relations

Stephen Angelo

Chief Audit Officer

Edwin Artuz

Head of Corporate Services & Director of the Office of Minority & Women Inclusion

Steve Christatos

Director, Compliance

John Edelen

Chief Risk Officer

Melody Feinberg

Deputy Chief Risk Officer

Bob Fusco

Chief Information Officer & Head of Enterprise Services

Adam Goldstein

Chief Business Officer

Paul Héroux

Chief Bank Operations Officer & Community Investment Officer

Kevin Neylan

Chief Financial Officer

Philip Scott

Chief Capital Markets Officer

Jonathan West

Chief Legal Officer

VICE PRESIDENTS

Backer Ali

Controller

James Bernard*

Director, Member Services Operations

Sean Borde

Director, Project Management Office

John Brandon

Senior Manager,

Business Research & Development

Kenneth Brothers

Director, Information Security Office

Muriel Brunken

Senior Manager, Acquired Member Assets

Judy Chiu

Senior Manager, Derivatives Accounting

& Operations Officer

Joseph Creighton*

Senior Manager, Portfolio Officer & Acquired Member Assets Controller

Mark Dankenbrink

Senior Manager, Financial Audits

Bernard DeSiena

Senior Manager, Application Services

Thomas Doyle*

Director, Acquired Member Assets

Brian Finnegan

Assistant Corporate Secretary

Paul Friend

General Counsel

Bryan Gallagher

Director, Collateral Valuation & Analysis

Joseph Gallo*

Community Investment Officer

Robert Havanki*

Director, Business Technology

Rodger Hicks

Director, Technical Services

Susan Isquith

Director, Credit Risk Management

Maureen Kalena

Calling Officer

Claudia Kim

Director, Management Reporting

Phillip Mack

Manager, Credit & Collateral Risk Analytics

Gregory Marposon

Financial Risk

Walter Moran

Director, Facilities Services

Sandra Napoleon*

Senior Manager, Quality Assurance

Alfred O’Connell

Calling Officer

Deborah Palladino

Director, Collateral Analytical Services

Diahann Rothstein

Director, Investment & Portfolio Management

Edward Samson

Senior Manager, Reporting

Thomas Settino

Director, Sales

Rei Shinozuka

Director, Strategic, Operational,

& Model Risk Management

Candice Soldano

Director, Marketing & Corporate Events

Louis Solimine

Director, Funding & Derivatives/ Treasurer

Alexies Sornoza

Calling Officer

Mildred Tse-Gonzalez

Director, Human Resources

Michael Volpe

Director, Member Services Operations

Barbara Way

Assistant General Counsel

ASSISTANT VICE PRESIDENTS

Jessey Abraham

Compliance Officer

Mary Alvarez

Residential Loan Review Officer

Beth Bentley

Affordable Housing Officer -

Senior Community Investment Analyst

James Boyle

Senior Manager, Operational Risk

Erika Buglione

Manager, Quality Assurance

Christine Campbell

Manager, Electronic Payments

Michael Desiderio

Senior Manager, Credit Services

Joseph Garofalo

Risk Management Audit Manager

Sekar Gopinathan

Architectural Services Manager

Sheharyar Hasan

Manager, Investment & Portfolio Management

Mimi Hur

Financial/Operational Audit Manager

Jason Kannenberg

Senior Manager,

Network Storage & Security Services

Ahmet Kargi

Senior Manager,

Systems & Operations Services

Eugene Khesin

Trader Analyst

Kenneth Knight

Commercial Loan Review Officer

Kristen Lalama

Senior Credit Risk Officer

Christina Levatino

Senior Manager,

Information Technology Audit

Anthony Merli

Credit/Capital Markets Audit Manager

Ching Ngai

Manager, Financial Reporting

Bruce Petersel

Accounting Policy Officer

Frederick Puorro

Senior Credit Risk Officer

Angel Santos

Calling Officer

Anthony Scalzo

Custody & Pledging Services Officer

Eric Shumsky

Senior Manager,

Systems & Support Services

Alberto Suarez

Risk Reporting Manager

Eric Suber

Senior Manager, Database Services

Catherine Sze

Manager, Management Reporting

Benjamin Tan

Assistant Treasurer

Kimberly Whitenack

Model Validation Manager

Brian Wiedl

Manager, Records & Continuity Services