Earnings Fall At SeattleFHLB

SEATTLE - (08/12/04) -- The Federal Home Loan Bank ofSeattle said net income for its second quarter dropped 22% to $25.5million, compared to the same period last year, due to thecontinued low interest rate environment. Low rates resulted inaccelerated turnover of assets at the Seattle bank, as mortgagesprepaid and investments were called. This also reduced the rates atwhich the regional FHLB could reinvest its assets, resulting inlower returns on investments. Still, the Seattle bank announced a4% dividend (annualized) to its 374 members, including 79 creditunions, the same as the first quarter payout.