July 31, 2012
The Federal Home Loan Bank (FHLB) of Seattle released its latest three- and six-month financial results Monday, reporting a return to profitability as well as the restoration of normal operations.
In its unaudited statements for the period ending June 30, the bank stated a positive $22.9 million and $35.8 million of net income, compared to net losses of $28.1 million and $40.3 million for the same periods in 2011.
The Seattle FHLB is a not-for-profit financial cooperative that provides an important source of liquidity and funding to 50 Oregon and Washington credit union member institutions. The bank also serves credit unions and banks in Alaska, Hawaii, Idaho, Montana, Utah and Wyoming, as well as American Samoa, Guam and the Commonwealth of the Northern Mariana Islands. Members include commercial banks, credit unions, thrifts, industrial loan corporations, and insurance companies.
As of June 30, 2012, the Seattle FHLB met all minimum financial requirements under the Consent Arrangement previously issued by the Federal Housing Finance Agency in October 2010, but it still remains classified as "undercapitalized" by the Finance Agency.
“Our earnings have improved due to management actions that include rebalancing our debt portfolio and increasing our holdings of floating-rate agency MBS,” said Seattle FHLB President and CEO Michael L. Wilson. “Another contributing factor has been the relative stability in our advance balances.”
The Seattle FHLB is one of 12 Federal Home Loan Banks in the United States. The full report is available on the FHLB’s website.
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