Seattle FHLBank Reports 3Q Profits

The Federal Home Loan Bank of Seattle has reported a profitable third quarter but says it still expects to book a loss in the fourth quarter and break even for the year.The Seattle bank posted $14.3 million in earnings for the third quarter, compared with a $15.7 million loss in the second quarter, as it struggles to refocus on its advance business and mothball its mortgage purchase program. The FHLBank, which is operating under a supervisory agreement, said outstanding advances declined by $1 billion during the third quarter and totaled $17.7 billion as of Sept. 30. The Seattle bank also reported the results of a $1.9 billion mortgage loan sale in August. It recorded a $7 million gain on the sale of $1.4 billion in government-insured mortgages. But it ended up taking a $1.1 million "unrealized loss" on the remaining loans it could not sell and retained in portfolio.