Board Lifts Most Limits on Seattle FHLBank

A federal regulator has lifted most of the supervisory restrictions it imposed on the Federal Home Loan Bank of Seattle two years ago, but the bank is still limited in the amount of dividends it can pay.Seattle FHLBank president James Gilleran said the Federal Housing Finance Board has terminated its written agreement with the Seattle Bank. "We are extremely pleased with the progress we've made in our business turnaround," he said. Under the supervisory agreement, the Seattle FHLBank suspended its mortgage purchase program and rebuilt its advance business. The $53.5 billion-asset FHLBank recently reported a third-quarter profit of $9.1 million and paid its first stock dividend ($0.10) in December after a long hiatus. The Seattle FHLBank will continue to limit dividends to 50% of net income, except with prior approval by the Finance Board.