Regulators Lift Supervisory Agreement With Once-Troubled FHLB
WASHINGTON – The Federal Housing Finance Board said Friday it has terminated the rare supervisory agreement it had with the Federal Home Loan Bank of Seattle, which barred it from paying dividends for three years without regulatory approval, or from approving any stock redemptions before the mandatory five-year period. But the Bank’s compliance with the terms of the supervisory agreement, which included its exit from the secondary loan market, and improved financials, which allowed it to pay a slight dividend for the third quarter, prompted the regulator to lift the supervisory agreement. The Seattle Bank has also brought in new management, including former Office of Thrift Supervision Director James Gilleran, who was hired as its president and CEO. The Seattle Bank reported net income of $19.6 million for the first three quarters. The Bank has 375 members, including 75 credit unions.