February 1, 2007

Dear Seattle Bank Members and Community Investment Project Sponsors,

We are pleased to announce that the Federal Home Loan Bank’s Board of Directors has awarded $3,065,167 in 2006 Affordable Housing Program (AHP) grants to fund 19 affordable housing initiatives within our district.

The 2006 AHP grants will help to create 646 units of affordable housing for low and very low income households in Hawaii, Idaho, Oregon, Utah, and Washington. These include first-time homebuyers, homeless individuals and families, and those affected by disabilities.

• Eleven of the projects will support homeownership; eight will provide affordable rental housing.
• Nine of the projects will be located in rural areas; 10 will be located in urban areas.
• Eight of the projects will serve the homeless.

For mixed-income projects that include both affordable and market rate units, only the affordable units will receive AHP subsidy.

As you know, AHP awards are granted through competitive application process. The Seattle Bank received 41 applications for AHP funding in 2006. All projects receiving awards met the Seattle Bank’s funding priorities for the 2006 funding round.

Fifteen Seattle Bank members will receive the AHP awards: Albina Community Bank, Anchor Bank, Bank of America Oregon, N.A., Bank of American Fork, Bank of the Cascades, Columbia River Bank, First Hawaiian Bank, First Mutual Bank, HomeStreet Bank, Mountain West Bank, ShoreBank Pacific, Silver Falls Bank, Sterling Savings Bank, Wells Fargo Bank Northwest, N.A., and Zions First National Bank. Four of our members, Bank of American Fork, Bank of America Oregon, N.A., Wells Fargo Bank Northwest, N.A. and HomeStreet Bank, received multiple awards.

The Board of Directors also approved four alternate projects that will be funded if sufficient AHP subsidy is returned to the Seattle Bank from previously approved applications by September 1, 2007. Those projects are sponsored by Bank of American Fork and Wells Fargo Bank Northwest, N.A., Bank of the Cascades, Citizens Bank, and Sterling Savings Bank.

Every year, the Seattle Bank contributes 10 percent of its net income from the previous year to fund affordable housing under its AHP. Since the program’s inception in 1990, the Seattle Bank has contributed more than $135 million to help finance 26,695 affordable homes.

We invite you to visit the Seattle Bank’s Web site at www.fhlbsea.com for a complete list of approved 2006 projects. Please contact Jennifer Ernst at 206.340.8737 or jennifere@fhlbsea.com with any questions regarding our AHP or other community investment programs.

Congratulations to our 2006 AHP recipients!

This Community Investment News contains forward-looking statements that are subject to risk and uncertainty. These forward-looking statements may contain terms such as “will,” “believe,” “expect,” “intend,” “may,” “could,” “should,” and “anticipate” and describe our expectations regarding future events and developments. Future events are difficult to predict, and actual events, actions, or results may differ from those we currently anticipate. Any forward-looking statements made in this Commnity Investment News speak only as of the date hereof, and we do not undertake to update any such statements.