 Member Audio/Web
Conference
May 3, 2013
Exhibit 99.1 |
 Cautionary Statement Regarding Forward-
Looking Information
2
Statements contained in these slides, including statements describing the objectives, projections,
estimates, or predictions of the future of the Bank, may be “forward-looking
statements.” These statements may use forward-looking terms, such as “anticipates,”
“believes,” “could,” “estimates,” “may,” “should,”
“will,” or their negatives or other variations on these terms. The Federal Home Loan
Bank of Pittsburgh (the Bank) cautions that, by their nature, forward-looking statements involve
risk or uncertainty and that actual results could differ materially from those expressed or
implied in these forward-looking statements or could affect the extent to which a
particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties
including, but not limited to, the following: economic and market conditions, including, but not
limited to, 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 mortgage-backed securities; 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 advances’ 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 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 risks; and timing and volume of market activity. We do not undertake
to update any forward-looking information. Some of the data set forth herein is unaudited. |
 Over/
2013
2012
(Under)
Net interest income
45.4
$
42.2
$
3.2
$
Provision (benefit) for credit losses
(0.1)
0.1
(0.2)
Net OTTI credit losses
(0.4)
(7.2)
6.8
All other income
4.1
6.8
(2.7)
Other expenses
17.4
17.5
(0.1)
Income before assessments
31.8
24.2
7.6
AHP
3.2
2.4
0.8
Net income
28.6
$
21.8
$
6.8
$
Net interest margin (bps)
31
32
(1)
Three months ended March 31,
Financial Highlights –
Statement of Income
(in millions)
3 |
 Quarterly Net Income
1Qtr 13
4Qtr 12
3Qtr 12
2Qtr 12
1Qtr 12
Net income
28.6
$
51.7
$
33.0
$
23.2
$
21.8
$
Net prepayment fees on
advances
1.7
$
17.5
$
2.2
$
7.4
$
4.7
$
Net OTTI credit losses
(0.4)
(0.4)
(0.2)
(3.6)
(7.2)
Derivative and hedging activity
1.6
8.1
3.5
(4.9)
4.0
(in millions)
4 |
 Quarterly Advance Trend
5 |
 Financial Highlights –
Selected Balance Sheet
Three months ended March 31,
2013
2012
Amount
Average:
Total assets
59,297
$
53,682
$
5,615
$
10
%
Advances
36,379
30,586
5,793
19
Total investments
18,718
18,747
(29)
-
March 31,
Dec 31,
2013
2012
Amount
Spot:
Advances
39,994
$
40,498
$
(504)
$
(1)
%
PLMBS (par)
2,760
2,944
(184)
(6)
Retained earnings
586
559
27
5
Percent
Over/(Under)
Over/(Under)
Percent
(in millions)
(in millions)
6 |
 Capital and Risk-Based Requirements
Mar 31,
Dec 31,
Mar 31,
2013
2012
2012
Permanent capital
(1)
3,787
$
3,807
$
3,748
$
Risk-based capital requirement:
Credit risk capital
662
$
678
$
679
$
Market risk capital
148
114
186
Operations risk capital
243
238
259
Total risk-based capital requirement
1,053
$
1,030
$
1,124
$
Excess permanent capital
2,734
$
2,777
$
2,624
$
Percentage of requirement
360%
370%
333%
Capital ratio (4% minimum)
6.3%
5.9%
7.0%
Leverage ratio (5% minimum)
9.4%
8.8%
10.6%
Market value/capital stock (MV/CS)
118.0%
115.1%
103.9%
(in millions)
(1)
Permanent capital includes excess capital stock of $581, $624, and $1,125 at March
31, 2013, December 31, 2012 and March 31, 2012, respectively.
Fourth
quarter
2012
capital
classification
“adequately
capitalized.”
However,
our
regulator
has
maintained
concerns
regarding
our
level
of
retained
earnings
and
the
PLMBS
portfolio.
7 |
 •
Dividend declared based on first quarter 2013 results
Equal to first quarter 2013 average three-month LIBOR (annual yield of
0.29%) Based on average stock outstanding for first quarter 2013
Payment date: April 30, 2013
•
Partial excess capital stock repurchase
Excess
capital
stock
repurchased
–
approximately
$400
million
Effective date: April 29, 2013
Payment date: April 30, 2013
•
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
8 |
 Member Audio/Web
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May 3, 2013 |