SEATTLE – The Federal Home Loan Bank of Seattle was classified by federal regulators as ‘undercapitalized’ for the first quarter, the bank said in a regulatory filing Friday.
The Seattle Bank held $3 billion in regulatory capital as of March 31, which fell short of its requirements by $466.7 million, the FHLB said
The FHLB said that it plans to submit a new capital plan to the Federal Housing Finance Agency, which regulates Fannie Mae, Freddie Mac and all 12 regional Federal Home Loan Banks, by Aug. 24.
The Seattle Bank lost $16.2 million in the first quarter. The loss would have been more than $800 million without a change in accounting rules that allowed it to avoid a charge of $823.5 million in unrealized other-than-temporary impairments on its mortgage holdings.
