Friday, May 15, 2009

Five Federal Home Loan Banks Delay Earnings Reports on Losses

Five of the 12 regional Federal Home Loan Banks delayed filing first-quarter earnings results, saying they need more time to calculate losses on mortgage holdings.

The Federal Home Loan Banks of Seattle, Topeka, Chicago, Pittsburgh and Boston notified the Securities and Exchange Commission today of their need for an extension. The other seven banks met today’s filing deadline.

Most of the banks that haven’t filed said they weren’t able to complete evaluations of other-than-temporary impairments of some investments, according to separate statements. Net income for the 12 Federal Home Loan Banks combined fell 57 percent last year to $1.2 billion because of writedowns in the value of mortgage bonds and home-equity loan investments.

The Federal Home Loan Banks are 12 government-chartered cooperatives owned by U.S. financial companies that make below- market-rate loans to the more than 8,100 thrifts, commercial banks, insurance companies and credit unions.

The banks that met the deadline are Atlanta; Cincinnati; Dallas, Des Moines, Iowa; Indianapolis; New York; and San Francisco.