FHLB Seattle Declares Q3 Cash Dividend; “Milestone in Bank’s Turnaround”

The Federal Home Loan Bank of Seattle (Seattle Bank) declared a $0.025 per share cash dividend after announcing preliminary financial highlights for the three- and six-month periods ended June 30, 2013.

Seattle Bank President and CEO Michael L. Wilson said the dividend was “our first in a number of years.”

“The Seattle Bank’s financial and operational performance has steadily improved over the last three years,” Wilson stated in a news release issued to media this week. “We’ve been repurchasing access capital stock since third quarter 2012, and this payment of a modest dividend to our shareholders represents another significant milestone in the bank’s turnaround,” he continued.

The dividend, totaling $683,000, will be paid based on average Class A and Class B stock outstanding during Q2, 2013.

According to the news release, key drivers of the Seattle’s Bank’s performance in Q2 and in the first half of 2013 include:

  • Higher net interest income, increasing to $34.2 million for the three months ending June 30 and to $68.5 million for the first six months of 2013. Those earnings compare to $29.7 million and $34.2 million in the same periods of 2012.
  • Lower net gains (losses) on derivatives and hedging activities including a $601,000 net loss in the three months ending June 30, and a net gain of $10,000 in the six months ending June 30, compared to net gains of $18.2 million and $30.3 million for the same periods last year.
  • The fact that the Seattle bank recorded no additional credit losses on private-label mortgage-backed securities (MBS) for the three months ended June 30, and $342,000 in the first half of this year, compared with $4.3 million and $5.6 million for the same periods of 2012.
  • Higher other non-interest expense due to the impact of a one-time $4.0 million write-off of software.

The Seattle bank’s total assets increased to $38.0 billion as of June 30, 2013-up from $35.4 billion as of December 31, 2012.  More information about the Seattle Bank can be found online.

The Seattle Bank is a financial cooperative providing liquidity, funding and services to its member financial institutions—including credit unions. A primary focus for the Seattle bank is helping its member financial institutions provide consumers with better access to mortgages, commercial loans and funding for affordable housing and economic development. The FHLB Seattle serves members in Oregon, Washington, Alaska, Hawaii, Idaho, Montana, Utah, Wyoming, the Commonwealth of the Northern Mariana Islands and the U.S territories of American Samoa and Guam. 

The Seattle Bank’s Board of Directors does include a credit union voice. Benson Porter, president and CEO of BECU, was elected to serve last year.

 

Questions? Contact Lynn Heider: 503.350.2225, lheider@nwcua.org.

Posted in Federal, NCUA, NWCUA.