Edward Hjerpe is returning to the Federal Home Loan Bank of Boston, which continues to struggle with souring mortgage holdings, as its new president and chief executive.

The appointment was announced Tuesday. Hjerpe was an executive vice president, the chief operating officer and the chief financial officer at the Boston bank from 1997 to 2004. He then moved to Webster Financial Corp., where he was a senior vice president from 2004 through 2007. He was also the president and chief operating officer of Webster Bank's Massachusetts and Rhode Island division.

He is currently the interim CEO of Strata Bank and Service Bankcorp Inc.

In a filing with the Securities and Exchange Commission, the Boston Home Loan bank said it will pay Hjerpe a $550,000 salary, a car and $4,000 a month for one year to rent a furnished apartment in Boston.

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