Cincy FHLBank Reports '05 Earnings

The Federal Home Loan Bank of Cincinnati has reported earnings of $219.7 million for 2005, down 3.2% from the level of the previous year when it reaped $68.9 million in prepayment fees."We achieved solid financial results, posted near-record earnings, while fulfilling our housing mission," said David Hehman, president and chief executive of the Cincinnati bank. Excluding the advance prepayment fees in 2004, net income improved by $43.3 million in 2005 due to a rapid and continual rise in short-term interest rates, according to the unaudited earnings report. The bank recently announced that it is paying a first-quarter dividend of 5.75%. The Cincinnati FHLBank also reported that its mortgage purchase portfolio grew by 0.6% to $8.4 billion in 2005. The bank executed $1.72 billion in new mortgage purchase commitments, while principal paydowns totaled $1.70 billion. The FHLBank said it will file an audited financial report with the Securities and Exchange Commission by the end of March. The FHLBank can be found online at http://www.fhlbcin.com.