 Member Audio/Web
Conference
August 2, 2013
Exhibit 99.1 |
 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, 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. Cautionary Statement Regarding Forward-
Looking Information
2 |
 Over/
2013
2012
(Under)
Net interest income
87.5
$
92.1
$
(4.6)
$
Provision (benefit) for credit losses
(1.3)
0.1
(1.4)
Net OTTI credit losses
(0.4)
(10.8)
10.4
All other income
15.1
3.7
11.4
Other expenses
36.0
34.9
1.1
Income before assessments
67.5
50.0
17.5
AHP
6.9
5.0
1.9
Net income
60.6
$
45.0
$
15.6
$
Net interest margin (bps)
30
34
(4)
Six months ended June 30,
Financial Highlights –
Statement of Income
(in millions)
3 |
 Quarterly Net Income
2Qtr 13
1Qtr 13
4Qtr 12
3Qtr 12
2Qtr 12
Net income
32.0
$
28.6
$
51.7
$
33.0
$
23.2
$
Net prepayment fees on
advances
0.4
$
1.7
$
17.5
$
2.2
$
7.4
$
Net OTTI credit losses
-
(0.4)
(0.4)
(0.2)
(3.6)
Derivative and hedging activity
7.1
1.6
8.1
3.5
(4.9)
(in millions)
4 |
 Quarterly Advance Trend
5 |
 Financial Highlights –
Selected Balance Sheet
Six months ended June 30,
2013
2012
Amount
Average:
Total assets
59,949
$
55,212
$
4,737
$
9
%
Advances
37,578
31,761
5,817
18
Total investments
18,206
19,120
(914)
(5)
June 30,
Dec 31,
2013
2012
Amount
Spot:
Advances
40,570
$
40,498
$
72
$
-
%
PLMBS (par)
2,566
2,944
(378)
(13)
Retained earnings
616
559
57
10
Percent
Over/(Under)
Over/(Under)
Percent
(in millions)
(in millions)
6 |
 (in millions)
June 30,
Dec 31,
2013
2012
Permanent capital
(1)
3,786
$
3,807
$
Excess permanent capital
over RBC requirement
2,747
$
2,777
$
Capital ratio (4% minimum)
6.2%
5.9%
Leverage ratio (5% minimum)
9.3%
8.8%
Market value/capital stock (MV/CS)
117.9%
115.1%
Capital Requirements
7
(1)
Permanent
capital
includes
excess
capital
stock
of
$503
million
at
June
30,
2013
and
$624 million at December 31, 2012 |
 •
Dividend declared based on second quarter 2013 results
–
Annualized yield of 1.0%
–
Based on average stock outstanding for second quarter 2013
–
Payment date: July 30, 2013
•
All remaining excess capital stock repurchased
–
Effective date: July 29, 2013
–
Payment date: July 30, 2013
•
Going forward, excess capital stock to be repurchased on a monthly basis
Dividend Payment & Excess Stock Repurchase
8 |
 Member Audio/Web
Conference
August 2, 2013 |