The Federal Home Loan Bank of Seattle has reported a net loss of $241.2m for the fourth quarter ended December 31, 2008, compared to a net income of $18.6m for the fourth quarter ended December 31, 2007.
The bank reported a net loss of $199.4m for the year ended December 31, 2008, compared to a net income of $70.7m for the year ended December 31, 2007.
The Federal Home Loan Bank of Seattle attributes its 2008 net loss primarily to $304.2m of other-than-temporary impairment charges on certain of its private-label mortgage-backed securities that are classified as held-to-maturity.
Net interest income was $178.6m for 2008, compared to $171m for 2007. The bank said that the increase in net interest income was due primarily to a significant decline in short-term interest rates, which resulted in a larger decrease in the bank’s total interest expense than in its total interest income.
Total assets declined to $58.36 billion as of December 31, 2008 from $64.2 billion as of December 31, 2007.
Richard Riccobono, president and CEO of the Federal Home Loan Bank of Seattle, said: The past year has presented significant challenges for the financial services industry and the Federal Home Loan Bank of Seattle has been no exception. As we work through this difficult time, however, we remain focused on our mission: providing the liquidity and funding our members need to manage their businesses and support their communities.
