Printer Friendly

FEDERAL HOME LOAN BANK OF SEATTLE REPORTS SECOND QUARTER RESULTS

 SEATTLE, July 29 /PRNewswire/ -- The Federal Home Loan Bank of Seattle reported net income of $61.7 million for the three-month period ended June 30, 1993, and paid an annualized stock dividend of 15.28 percent for the quarter. For the same period in 1992, net income was $21.5 million and the dividend rate was 10.25 percent.
 The rise in net income reflects a large increase in prepayment fee income, which is income received when customers repay loans early. These fees are recognized as income when received and paid out as dividends over the term of the prepaid loans. Due to a large prepayment received in April, the Seattle Bank received $47 million in net prepayment fee income during the second quarter of 1993, up from $6 million in the same period in 1992.
 Adjusting net income for prepayments provides a more meaningful report of financial performance when comparing quarterly financial results. Net income adjusted for prepayments was $38 million for the second quarter of 1993, up 73 percent from $22 million in the same period in 1992.
 For the second quarter, the Seattle Bank set aside $5.4 million of its earnings to fund the Affordable Housing Program (AHP). A minimum of six percent of net income will be set aside each quarter in 1993 for the AHP. These funds will be disbursed as direct subsidies and interest rate subsidies to support the development of low-income housing in 1994.
 "The Bank's continued strong financial performance translates directly into more money to support affordable housing," reports James R. Faulstich, president and chief executive officer of the Seattle Bank. "We expect to have $10 million available through the AHP next year, the highest amount since the program was created in 1989."
 The first AHP funding awards of 1993 were announced in mid-June. Financial institutions received subsidies totaling $3.2 million to support 22 initiatives that will create or preserve affordable housing. Funded programs include the construction of Las Brisas Del Mar, an apartment building that will house homeless, Hispanic men in Seattle; renovation of a vacant school into apartments for low-income families in Nampa, Idaho; and the remodel of a private home to house homeless, pregnant teenage women in Bend, Ore.
 The Federal Home Loan Bank of Seattle is a stockholder-owned corporation chartered by the federal government to promote the availability and affordability of housing finance. By providing a steady source of low-cost funds, the Federal Home Loan Bank of Seattle supports the home mortgage lending activities of community-based financial institutions in the region. With $12.2 billion in assets, the Seattle Bank serves 186 savings institutions, commercial banks, credit unions and federally insured financial services loan companies in Alaska, Hawaii, Idaho, Montana, Oregon, Utah, Washington, Wyoming and the territory of Guam.
 -0- 7/29/93
 /CONTACT: Darcy Minter of Federal Home Loan Bank of Seattle, 206-340-8703/


CO: Federal Home Loan Bank of Seattle ST: Washington IN: FIN SU: ERN DIV

SB -- SE001 -- 7401 07/29/93 10:30 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 29, 1993
Words:501
Previous Article:ALCO STANDARD NAMES PRESIDENT OF BUTLER PAPER COMPANY
Next Article:ENTERGY CORPORATION DECLARES QUARTERLY DIVIDEND, CONTINUES STOCK BUYBACK PLAN
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters