The Federal Home Loan Bank of Seattle [link=http://www.reuters.com/article/pressRelease/idUS18959+30-Oct-2009+BW20091030][u]reported[/u][/link] net losses for its third-quarter and year-to-date periods.
The bank experienced net losses of $93.8 million and $144.3 million for the three- and nine-month periods ending Sept. 30, 2009, compared to a net loss of $18.8 million and net income of $41.8 million for the three- and nine-month periods ending Sept. 30, 2008.
In a press statement, the bank attributed its net losses primarily to $130.1 million and $263.5 million of credit-related charges associated with projected losses on its investments in private-label mortgage-backed securities.
‘The mark-to-market write-downs we've had to take on our private-label mortgage-backed securities have reduced our GAAP capital, while the projected credit losses have severely impacted our net income,’ says Richard M. Riccobono, president and CEO.
As of Sept. 30, the bank had total assets of $54.1 billion, compared to $58.4 billion as of Dec. 31, 2008. However, as of Sept. 30, the bank reported meeting all of its regulatory capital requirements, including its risk-based capital requirement. However, it remains classified as ‘undercapitalized’ by its regulator, the Federal Housing Finance Agency.
SOURCE: Federal Home Loan Bank of Seattle