FHLBank Declares Dividend, With Caveat

The board of directors of the Federal Home Loan Bank of Seattle has declared a class B(1) annualized stock dividend of 4% for the first quarter, but cautioned that market trends may result in lower dividends later this year."Earnings thus far in the first quarter have continued to be under significant pressure for the Seattle bank," said Norman B. Rice, president and chief executive officer of the Seattle FHLBank. "Interest rates have fallen, which has resulted in faster recognition of premium expense on mortgage loans and securities, as well as generally lower yields on assets. In addition, new volume in our Mortgage Purchase Program has been lower than anticipated in the first quarter." The bank can be found online at http://www.fhlbsea.com.