EX-99.1

Member Audio/Web

Conference

November 2, 2012

Exhibit 99.1

Cautionary Statement Regarding Forward-

Looking Information and Adjusted Information

Data set forth in these slides includes unaudited data. 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.” These uncertainties may cause our actual future results to be materially different than those expressed in our

forward-looking statements. 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, other than temporary impairment of investment

securities, regulatory and accounting rule adjustments or requirements, changes in interest rates, changes in projected

business volumes, changes in prepayment speeds on mortgage assets, the cost of our funding, changes in our membership

profile, the withdrawal of one or more large members, competitive pressures, shifts in demand for our products and

consolidated obligations, changes in the System’s debt rating or the Bank’s rating, general economic conditions (including

effects on among other things, mortgage-backed securities), applicable Bank policy requirements for retained earnings

levels and the ratio of market value of equity to par value of Bank capital stock, the Bank’s ability to maintain adequate

capital levels (including meeting applicable regulatory capital requirements), business and capital plan adjustments and

amendments, legislative and regulatory actions or approvals, interest-rate volatility, our ability to appropriately manage our

cost of funds and the cost-effectiveness of our funding, hedging and asset-liability management activities. We undertake no

obligation to revise or update publicly any forward-looking statements for any reason. This document also contains non-

GAAP financial information. Because of the nature of (1) OTTI charges and (2) gain on the sale of the Bank’s Lehman

derivatives claim, the Bank believes that adjusting net income for these items and evaluating results as adjusted (which the

Bank defines as “adjusted earnings”) is important in order to understand how the Bank is performing with respect to its

primary business operations and to provide meaningful comparisons to prior periods. Adjusted earnings are considered to

be a non-GAAP measurement. Management uses this information in its internal analysis of results and believes that this

information may be informative to investors in gauging the quality of our financial performance, identifying trends in our

results and providing meaningful period-to-period comparisons.

Financial Highlights –

Statement of Income

(in millions)

2012

2011

Over/

(Under)

Net interest income

142.1

112.7

29.4

Provision for credit losses

6.3

(6.3)

Net OTTI credit losses

(11.0)

(37.5)

26.5

All other income

8.3

9.6

(1.3)

Other expenses

52.7

44.2

8.5

Income before assessments

86.7

34.3

52.4

AHP/REFCORP

8.7

7.2

1.5

GAAP net income

78.0

27.1

50.9

Net interest margin (bps)

Nine

months

ended

September

30,

Quarterly Adjusted Earnings

3Qtr 12

2Qtr 12

1Qtr 12

4Qtr 11

3Qtr 11

GAAP net income

33.0

23.2

21.8

10.9

11.9

Adjustments:

Net OTTI credit losses

(0.2)

(3.6)

(7.2)

(7.6)

(6.2)

Sale of Lehman claim

1.9

AHP

0.4

0.7

0.4

Adjusted earnings

33.2

26.4

28.3

17.8

15.8

Prepayment fees on

advances, net

2.2

7.4

4.7

5.0

1.4

(in millions)

Quarterly Advance Trend

$41.2

$29.7

$25.8

$30.6

$37.7

$20.0

$25.0

$30.0

$35.0

$40.0

$45.0

$50.0

Dec-07

Dec-08

Dec-09

Dec-10

Dec-11

Period End Balances

Sep-12

$73.5 Mar-08

Sep-11

Financial Highlights –

Selected Balance Sheet

(in millions)

2012

2011

Amount

Average:

Total assets

56,899

52,512

4,387

Advances

32,802

26,973

5,829

Total investments

19,810

20,792

(982)

(5)

Sept 30,

Dec 31,

2012

2011

Amount

Spot:

Advances

37,739

30,605

7,134

PLMBS (par)

3,125

3,794

(669)

(18)

Retained earnings

511

435

Total AOCI

(162)

190

117

Percent

Over/(Under)

Nine

months

ended

September

30,

Percent

•

OTTI credit losses totaled $186 thousand in third quarter 2012 and $453

million life-to-date

•

No new CUSIPs were determined to be other-than-temporarily impaired in

the third quarter of 2012

•

Life-to-date, 51 securities have had an OTTI credit loss recorded with

current par of $1.8 billion. This represents 58% of the PLMBS portfolio

•

Actual cash losses were approximately $43 million life-to-date

•

PLMBS portfolio performance has stabilized in terms of delinquencies

•

Credit enhancement levels continue to decline as foreclosures make their

way through the system

•

Significant increases in cash flows caused an increase in yield on certain

OTTI PLMBS resulting in $2.2 million and $21.6 million of interest income

during the third quarter of 2012, and life-to-date, respectively

OTTI

Capital and Risk-Based Requirements

Sept 30,

June 30,

Dec 31,

2012

2011

Permanent capital

(1)

3,791

3,796

3,871

Risk-based capital requirement:

Credit risk capital

651

648

678

Market risk capital

129

105

139

Operations risk capital

234

225

245

Total risk-based capital requirement

1,014

978

1,062

Excess permanent capital

2,777

2,818

2,809

Percentage of requirement

374%

388%

365%

Capital ratio (4% minimum)

6.3%

6.8%

7.4%

Leverage ratio (5% minimum)

9.5%

10.2%

11.2%

Market value/capital stock (MV/CS)

112.2%

105.7%

96.9%

(in millions)

(1)

Permanent

capital

includes

excess

capital

stock

$796,

$1,037,

and

$1,294

September

30,

2012,

June 30, 2012 and December 31, 2011, respectively.

Second quarter 2012 capital classification “adequately capitalized.”

However, our regulator has

maintained

concerns

regarding

our

level

retained

earnings

and

the

poor

quality

the

PLMBS

portfolio.

•

Dividend declared based on third quarter 2012 results

Equal to third quarter 2012 average three-month LIBOR (annual yield of 0.43%)

Based on average stock outstanding for third quarter 2012

Payment date: October 31, 2012

•

Partial excess capital stock repurchase

Excess

capital

stock

repurchased

–

approximately

$300

million

Effective date: October 30, 2012

Payment date: October 31, 2012

•

No significant impact on:

Risk and capital adequacy measures

Members’

excess ownership percentage

•

Decisions for any future repurchases and/or dividend payments will be based on the

following:

Increased retained earnings

PLMBS AOCI levels

Adequate excess regulatory capital

MV/CS > 90%

Positive

GAAP

earnings

which

are

sustainable

for

the

foreseeable

future

Dividend Payment & Excess Stock Repurchase

Member Audio/Web

Conference

November 2, 2012