FHLBank of Chicago Is Back in the Black

The Federal Home Loan Bank of Chicago posted a $33 million profit in the third quarter after taking $142 million in losses over the previous two quarters. The FHLBank attributed the improved performance to a $29 million increase in net interest income and hedging/derivative gains of $18 million. But it also took a $9 million charge on its investments in private label mortgage-backed securities. Despite the turnaround, the bank said it does not expect to resume paying dividends this year. Separately, the FHLBank System Office of Finance said the Seattle FHLBank has not filed its third quarter financial report yet because it is still completing an "other-than-temporary impairment" analysis for certain investments. As a result, there will be a delay in publishing the combined financial report of the 12 FHLBanks, the Office of Finance said.