The Federal Home Loan banks began reporting third-quarter earnings Thursday, with three posting multimillion-dollar losses.
The Federal Home Loan Bank of Chicago lost $150 million in the quarter due to a $169 million other-than-temporary impairment charge for private-label, mortgage-backed securities. Still, it boosted its retained earnings by 27% from yearend, to $687 million.
The Federal Home Loan Bank of Boston lost $105.4 million in the quarter due to $174.2 million in OTTI charges. And the Federal Home Loan Bank of Pittsburgh lost $40.4 million in large part because of a $93.3 million OTTI charge.
Of the five other Home Loan banks that reported earnings by press time, three earned larger profits than they had a year earlier, and two earned a smaller profit. Income at the New York Home Loan bank grew 252.3%, to $140.2 million, on gains from derivatives and hedging activities. The Atlanta Home Loan bank's earnings jumped 124%, to $11.1 million. Income at the Topeka Home Loan bank increased 18.9%, to $24.5 million.
Earnings at the Federal Home Loan Bank of Indianapolis fell 55.6%, to $21.5 million. Net income at the Federal Home Loan Bank of Cincinnati was off 7%, to $61 million.