CHICAGO – The troubled Federal Home Loan Bank of Chicago yesterday reported a first quarter loss of $78 million as it continues to struggle through the mortgage crisis.
The report follows last month’s decision by the Chicago Bank to exit the secondary mortgage market program it created – known as Mortgage Partnership Finance – after losses from the program reduced its capital levels and killed a proposed merger with the FHLB of Dallas.
The first quarter red ink was caused by a $33 million loss on held to maturity securities and a $62 million loss on derivatives and hedging investments. In addition, net interest income was down to $31 million for the first quarter, from $73 million for the first quarter last year.
The Chicago Bank this week named Matthew Feldman, its chief operating officer, as its president and CEO. Feldman has been the bank’s acting president since April 11, after his predecessor, Mike Thomas, decided to leave his position as president and CEO following the decision of the FHLB Chicago and FHLB Dallas to abandon their plan to merge.
The Chicago Bank has 830 members, including 75 credit unions.
