8-K

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): May 11, 2007

Federal Home Loan Bank of Pittsburgh
__________________________________________
(Exact name of registrant as specified in its charter)

Federally Chartered Corporation	000-51395	25-6001324
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)
601 Grant Street, Pittsburgh, Pennsylvania		15219
_________________________________ (Address of principal executive offices)		___________ (Zip Code)

Registrant’s telephone number, including area code: 412-288-3400

Not Applicable
______________________________________________
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

The following information is furnished pursuant to Item 2.02, "Results of Operations and Financial Condition" and Item 7.01, "Regulation FD Disclosure."

On May 11, 2007, the Federal Home Loan Bank of Pittsburgh ("Bank") issued a press release to report: the Bank’s first-quarter 2007 earnings, the declaration of a second quarter dividend by the Bank’s Board of Directors in the amount of 6.00 percent annualized and the restatement described in Item 4.02(a) below. A copy of the press release is attached hereto as Exhibit 99.1.

Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.

Restatement and non-reliance

On the date hereof, the Bank is filing an amendment to its Annual Report on Form 10-K for the year ended December 31, 2006, to amend and restate financial statements for the 2006 fiscal year and for each of the 2006 interim periods.

During the preparation of the First Quarter 2007 Statement of Cash Flows, management became aware of an incorrect classification in the 2006 Statements of Cash Flows in the Bank’s quarterly reports filed on Form 10-Q and its 2006 annual report filed on Form 10-K. Following management’s review and analysis, management recommended to the Audit Committee of the Bank’s Board of Directors that the previously reported Statements of Cash Flows should be restated. At a meeting on May 8, 2007, the Audit Committee considered management’s recommendation; discussed the recommendation with the Bank’s independent accountant; and agreed with management’s recommendation. At a meeting on May 8, 2007, the Executive Committee, on behalf of the Board of Directors, adopted the recommendation of the Audit Committee and determined that the previously reported Statements of Cash Flows referred to above should not be relied upon. In light of the restatement, readers should not rely on our previously filed financial statements for the 2006 fiscal year and for the 2006 interim periods.

Item 7.01 Regulation FD Disclosure.

The information set forth above under Item 2.02 "Results of Operations and Financial Condition" is also furnished pursuant to this Item 7.01. Attached as Exhibit 99.1 to this Current Report on Form 8-K is a copy of the related press release. The information being furnished pursuant to Item 2.02 and Item 7.01of this Current Report on Form 8-K and the information contained in Exhibit 99.1 shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

Exhibit 99.1 - Press release, dated May 11, 2007, issued by Federal Home Loan Bank of Pittsburgh

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Federal Home Loan Bank of Pittsburgh
May 11, 2007	By:	Kristina K. Williams
		Name: Kristina K. Williams
		Title: Chief Financial Officer

Exhibit Index

Exhibit No.	Description
99.1	Press release, dated May 11, 2007, issued by Federal Home Loan Bank

EX-99.1

Press Release

FOR IMMEDIATE RELEASE

Contact: Terri McKay, FHLBank Pittsburgh: 412-288-2830; cell 412-523-8511 tmckay@fhlb-pgh.com

FHLBANK PITTSBURGH ANNOUNCES FIRST QUARTER 2007 FINANCIAL RESULTS;
SECOND QUARTER DIVIDEND DECLARED

PITTSBURGH, May 11, 2007 – The Federal Home Loan Bank of Pittsburgh (FHLBank Pittsburgh) announces financial results for the quarter ended March 31, 2007 and the Board of Directors’ declaration of the second quarter 2007 dividend. FHLBank has also reclassified certain items on its 2006 Statement of Cash Flows; this restatement had no impact on 2006 net income or financial condition.

Operating Results
Net income for the quarter ended March 31, 2007, was $53.8 million, an increase of $4.1 million, or 8.2%, compared to $49.7 million for the quarter ended March 31, 2006. The earnings increase was largely the result of higher net interest income, which increased $5.4 million, or 6.9%, to $83.6 million, compared to net interest income of $78.2 million for first quarter of 2006. The increase in interest income was due to the higher rate environment and primarily related to the loans to members portfolio (traditionally called advances). This increase was partially offset by higher interest expense on discount notes, due to both increased volume and higher interest rates paid. The first quarter 2007 net income resulted in earnings per share of $1.73, compared with $1.68 in the same period in 2006. These operating results enabled FHLBank Pittsburgh to set aside $6.0 million for affordable housing programs next year, an increase of 8.2% over the $5.5 million set aside in the same period in 2006.

“We are pleased with our strong first quarter performance, particularly in light of our largest borrower’s previously announced balance sheet restructuring as well as the flat interest rate environment and other economic factors in our region,” said John R. Price, president and CEO. “We anticipate these factors will affect the remainder of 2007.”

Balance Sheet Highlights
Total assets at March 31, 2007 were $73.0 billion, a decrease of $4.4 billion, or 5.6% from $77.4 billion at December 31, 2006. At March 31, 2007, total loans to members decreased $3.5 billion, or 7.2%, to $45.8 billion, compared to $49.3 billion at December 31, 2006. This decrease was driven by a decline in loans outstanding to Sovereign, FHLBank’s largest member. In December 2006, Sovereign announced a balance sheet restructuring to include a reduction of its wholesale funding, including FHLBank System debt, during the first quarter of 2007. As of March 31, 2007, Sovereign’s loans outstanding declined $6.3 billion, to $11.7 billion, down from a December 31, 2006 balance of $18.0 billion. Net mortgage loans held for portfolio decreased $0.3 billion, or 3.1%, to $6.7 billion, down from $7.0 billion at December 31, 2006.

FHLBank Pittsburgh’s total capital at March 31, 2007, was $3.3 billion, a decrease of $0.3 billion, or 8.2%, from $3.6 billion at December 31, 2006. Retained earnings were $259.3 million at March 31, 2007, an increase of $4.5 million, or 1.8%, from $254.8 million at December 31, 2006.

Dividend Announcement
Based on first quarter 2007 results, the Board of Directors declared a second quarter dividend of 6.00 percent annualized. The dividend will be calculated on stockholders’ average balances during the period
January 1, 2007 to March 31, 2007 and will be credited to stockholders’ accounts on Friday, May 25, 2007.

Restatement of Statement of Cash Flows
FHLBank Pittsburgh has restated the Statement of Cash Flows for the full year 2006 as well as each 2006 interim reporting period. The restatement solely affected the classification of line items in Operating Activities and Financing Activities, but had no impact on the Net Increase (Decrease) in Cash and Due from Banks previously reported. In addition, the restatements had no effect on FHLBank’s Statement of Operations, Statement of Condition, or Statement of Changes in Capital. As such, the Bank’s historical revenue, net income, earnings per share, total assets and total capital remained unchanged.

Detailed financial information is available in FHLBank Pittsburgh’s first quarter 2007 Form 10-Q filing and 2006 Form 10-K, as amended, which can be accessed through FHLBank Pittsburgh’s Web site at www.fhlb-pgh.com, or on the SEC’s Web site at www.sec.gov.

FHLBank Pittsburgh is a wholesale bank that serves the housing finance and community and economic development needs of its owner-members. FHLBank Pittsburgh provides reliable access to low-cost funds, competitive pricing in the purchase of mortgage loans, correspondent banking, technical assistance, affordable housing grants and other programs so members can better serve their own communities. FHLBank Pittsburgh is privately capitalized and funded, does not use taxpayer dollars, and enjoys a triple-A rating. At March 31, 2007, it had 337 members in its district of Delaware, Pennsylvania and West Virginia and approximately $73.0 billion in assets. FHLBank Pittsburgh is one of twelve Banks in the Federal Home Loan Bank System, established by Congress in 1932 to support the residential mortgage activities of local financial institutions.

This release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. These statements may use forward-looking terms, such as “projected,” “expects,” “may,” or their negatives or other variations on these terms. FHLBank Pittsburgh 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, 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 general economic conditions. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

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