FHLBank Pittsburgh Announces First Quarter Financial Results

PITTSBURGH–(BUSINESS WIRE)–The Federal Home Loan Bank of Pittsburgh (FHLBank Pittsburgh) today
announced unaudited financial results for the first quarter of 2019. The
Bank recorded net income of $98.0 million, and the Board of Directors
declared dividends of 7.75 percent annualized on activity stock and 4.50
percent annualized on membership stock. Dividends are payable to the
Bank’s stockholders on April 30, 2019.

“The momentum we generated throughout the course of 2018 continued into
the first quarter of 2019,” said Winthrop Watson, president and chief
executive officer. “The strength of our cooperative’s performance is a
reflection of the value we deliver to our members.”

Highlights for first quarter of 2019 include:

• Net income of $98.0 million
• Net interest income of $129.9 million
• Advances at $75.2 billion
• Letters of credit at $18.6 billion
• Retained earnings at $1.3 billion

Operating Results

The Bank’s net income totaled $98.0 million for the first quarter of
2019, compared to $78.9 million for the first quarter of 2018. This
$19.1 million increase was driven primarily by higher net interest
income.

Net interest income was $129.9 million for the first quarter of 2019,
compared to $109.6 million in the first quarter of 2018. Higher net
interest income was primarily due to an increase in average advance
balances and higher interest rates.

First quarter 2019 performance allowed the Bank to set aside $11.0
million for affordable housing programs.

Balance Sheet Highlights

At March 31, 2019, total assets were $101.8 billion, compared with
$107.5 billion at December 31, 2018. The decrease was primarily due to a
decline in advances, which totaled $75.2 billion at March 31, 2019,
compared to $82.5 billion at year-end 2018.

Total capital at March 31, 2019, was $5.2 billion, compared to $5.4
billion at December 31, 2018. Total retained earnings at March 31, 2019,
were $1.3 billion, relatively unchanged from year-end 2018. Total
retained earnings at March 31, 2019, included $371.5 million of
restricted retained earnings compared with $351.9 million of restricted
retained earnings at December 31, 2018. At March 31, 2019, FHLBank
Pittsburgh had total regulatory capital of $5.1 billion and remained in
compliance with all regulatory capital requirements.

The Board of Directors declared a dividend on subclass B2 (activity)
stock equal to an annual yield of 7.75 percent and a dividend on
subclass B1 (membership) stock equal to an annual yield of 4.50 percent.
These dividends will be calculated on stockholders’ average balances
during the period January 1, 2019, to March 31, 2019, and credited to
stockholders’ accounts on April 30, 2019.

Detailed financial information regarding first quarter 2019 results will
be available in FHLBank Pittsburgh’s Quarterly Report on Form 10-Q,
which the Bank anticipates filing on May 7, 2019.

About FHLBank Pittsburgh

As an intermediary between global capital markets and local lenders,
FHLBank Pittsburgh provides readily available liquidity, as well as
affordable housing and community development opportunities, to member
financial institutions of all sizes in Delaware, Pennsylvania and West
Virginia. The Bank is part of the Federal Home Loan Bank System, which
was established by Congress in 1932 and serves as a reliable source of
funds for housing, jobs and growth in all economic cycles.

This document contains “forward-looking statements” -that is, statements
related to future, not past, events. In this context, forward-looking
statements often address our expected future business and financial
performance, and often contain words such as “expect,” “anticipate,”
“intend,” “plan,” “believe,” “seek” or “will.” Forward-looking
statements by their nature address matters that are, to different
degrees, uncertain.

Actual performance or events may differ materially from that expected or
implied in forward-looking statements because of many factors. Such
factors may include, but are not limited to, economic and market
conditions, real estate, credit and mortgage markets; volatility of
market prices, rates and indices related to financial instruments;
political, legislative, regulatory, litigation, or judicial events or
actions; changes in assumptions used in the quarterly
other-than-temporary impairment (OTTI) process; risks related to MBS;
changes in the assumptions used in the allowance for credit losses;
changes in the Bank’s capital structure; changes in the Bank’s capital
requirements; membership changes; changes in the demand by Bank members
for Bank advances; an increase in advance prepayments; competitive
forces, including the availability of other sources of funding for Bank
members; changes in investor demand for consolidated obligations and/or
the terms of interest rate exchange agreements and similar agreements;
changes in the Federal Home Loan Bank (FHLBank) System’s debt rating or
the Bank’s rating; the ability of the Bank to introduce new products and
services to meet market demand and to manage successfully the risks
associated with new products and services; the ability of each of the
other FHLBanks to repay the principal and interest on consolidated
obligations for which it is the primary obligor and with respect to
which the Bank has joint and several liability; applicable Bank policy
requirements for retained earnings and the ratio of the market value of
equity to par value of capital stock; the Bank’s ability to maintain
adequate capital levels (including meeting applicable regulatory capital
requirements); business and capital plan adjustments and amendments;
technology and cyber-security risks; and timing and volume of market
activity. These uncertainties may cause our actual future results to be
materially different than those expressed in our forward-looking
statements. FHLBank Pittsburgh does not undertake to update any
forward-looking statements made in this announcement.

Contacts

Richard J. Stimel, FHLBank Pittsburgh, 412-288-7351, rich.stimel@fhlb-pgh.com