-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GDAeuB2DZmiI2ZmraaYkt7NUCqbbk1zb8v8YJ61ZELwPcirFhNYSKaHuhxIvAAIx LKa86nMNu9viW2n+SVGMIw== 0001299933-09-000945.txt : 20090226 0001299933-09-000945.hdr.sgml : 20090226 20090226162220 ACCESSION NUMBER: 0001299933-09-000945 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20090226 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20090226 DATE AS OF CHANGE: 20090226 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Federal Home Loan Bank of Pittsburgh CENTRAL INDEX KEY: 0001330399 STANDARD INDUSTRIAL CLASSIFICATION: FEDERAL & FEDERALLY-SPONSORED CREDIT AGENCIES [6111] IRS NUMBER: 000000000 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-51395 FILM NUMBER: 09638048 BUSINESS ADDRESS: STREET 1: 601 GRANT STREET CITY: PITTSBURGH STATE: PA ZIP: 15219 BUSINESS PHONE: 412-288-3400 MAIL ADDRESS: STREET 1: 601 GRANT STREET CITY: PITTSBURGH STATE: PA ZIP: 15219 8-K 1 htm_31566.htm LIVE FILING Federal Home Loan Bank of Pittsburgh (Form: 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):   February 26, 2009

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.

On February 26, 2009 the Federal Home Loan Bank of Pittsburgh (the "Bank") issued a press release to report the Bank’s unaudited financial results for the fourth quarter and twelve months ended December 31, 2008. 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 of 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.

(c) Exhibits

99.1 Press release dated February 26, 2009 issued by the Bank






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
          
February 26, 2009   By:   Kristina K. Williams
       
        Name: Kristina K. Williams
        Title: Chief Financial Officer


Exhibit Index


     
Exhibit No.   Description

 
99.1
  Press release dated February 26, 2009 issued by the Bank
EX-99.1 2 exhibit1.htm EX-99.1 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 FINANCIAL RESULTS FOR 2008

PITTSBURGH, February 26, 2009 – The Federal Home Loan Bank of Pittsburgh (FHLBank Pittsburgh) announces unaudited financial results for the year and quarter ended December 31, 2008.

Operating Results
Net income for the year ended December 31, 2008 was $19.4 million, a decrease of $217.4 million, or 91.8%, compared to net income of $236.8 million for 2007. The earnings decrease was driven by other-than-temporary impairment (OTTI) charges of $266.0 million on certain private label mortgage-backed securities (MBS) in the Bank’s investment portfolio. As previously disclosed, FHLBank Pittsburgh had purchased private label MBS through 2007; the portfolio experienced significant fair value deterioration in 2008, particularly in the fourth quarter. The level of OTTI charges in fourth quarter 2008 significantly exceeds management’s current expectations of economic losses of $94.4 million on the securities that had a writedown.

Net interest income for the year ended December 31, 2008, after provision for credit losses, was $274.8 million, a decrease of $90.7 million, or 24.8%, from $365.5 million from full year 2007. Return on average capital for full year 2008 decreased to 0.45%, compared to 6.47% for full year 2007. Full year 2008 net income resulted in earnings per share of $0.48 compared to $6.98 for the full year 2007. These 2008 operating results have provided for FHLBank Pittsburgh to set aside only $2.2 million for affordable housing programs in 2009, a decrease of $24.2 million, or 91.7%, from the $26.4 million set aside in 2007.

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• 601 Grant Street • Pittsburgh, PA 15219-4455 • 412-288-3400 • www.fhlb-pgh.com

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FHLBank Pittsburgh Reports Year-end 2008
Page two

For the fourth quarter ended December 31, 2008, FHLBank Pittsburgh recorded a loss of $187.9 million, a decrease of $254.6 million compared to net income of $66.7 million for fourth quarter 2007. This decrease was driven by the OTTI charges as discussed above. Net interest income for fourth quarter 2008, after provision for credit losses, was $27.9 million, a decrease of $73.2 million, or 72.4%, compared to $101.1 million in fourth quarter 2007. Return on average capital for the three months ended December 31, 2008 was (17.38)%, compared to 6.47% in the same year-ago period. Earnings per share for the three months ended December 31, 2008 was $(4.75), compared to $1.75 for the three months ended December 31, 2007.

“The story of 2008, for the Bank, our members and the entire economy, was market turmoil and severe economic downturn. Yet through incredibly rough seas, we continued to fulfill our mission to provide liquidity to members,” said John R. Price, president and CEO. “The OTTI charge, which is significantly in excess of our current expectation of real economic losses, is an unfortunate accounting reality. We continue to work with many affected groups to try to find a resolution to this issue.”

Balance Sheet Highlights
At December 31, 2008, total loans to members (traditionally called advances) decreased $6.6 billion, or 9.6%, to $62.2 billion, compared to $68.8 billion at December 31, 2007.

Total assets at December 31, 2008, were $90.8 billion, a decrease of $10.1 billion, or 10.0%, from $100.9 billion at year-end 2007. Total capital at December 31, 2008, was $4.1 billion, a decrease of $149.8 million, or 3.5%, from $4.3 billion at year-end 2007. Retained earnings were $170.5 million at December 31, 2008, a decrease of $125.8 million, or 42.5%, from $296.3 million at December 31, 2007.

Below are a condensed Statement of Condition as of December 31, 2008 and 2007 and a condensed Statement of Operations for the years ended December 31, 2008 and 2007.

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FHLBank Pittsburgh Reports Year-end 2008
Page three

Dividend Announcement
On December 23, 2008, FHLBank Pittsburgh management and Board of Directors announced the suspension of both dividend payments and the repurchase of capital stock until such time as it becomes prudent to reinstate both. The Bank paid dividends in each of the quarters of 2008 out of the previous quarter’s earnings.

Detailed and audited financial information will be available in FHLBank Pittsburgh’s 10-K filing, which will be filed in March. FHLBank’s filings 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 December 31, 2008, it had 323 members in its district of Delaware, Pennsylvania and West Virginia and approximately $91 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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Condensed Statements of Condition and Operations

                 
Statement of Condition (in millions)   12/31/08   12/31/07
ASSETS
               
Loans to members
  $ 62,153.4     $ 68,797.5  
Investments (1)
    21,798.1       24,691.3  
Mortgage loans held for portfolio, net
    6,165.3       6,219.7  
All other assets
    689.1       1,227.3  
 
               
Total assets
  $ 90,805.9     $ 100,935.8  
 
               
LIABILITIES
               
Consolidated obligations, net
  $ 84,263.0     $ 93,298.5  
All other liabilities
    2,408.0       3,352.6  
 
               
Total liabilities
    86,671.0       96,651.1  
CAPITAL
               
Total capital stock
    3,981.7       3,994.7  
Retained earnings
    170.5       296.3  
Accumulated other comprehensive income (loss)
    (17.3 )     (6.3 )
 
               
Total capital
    4,134.9       4,284.7  
 
               
Total liabilities and capital
  $ 90,805.9     $ 100,935.8  
 
               
(1) Investments include held-to-maturity securities, available-for-sale securities, trading securities, interest-earning deposits and Federal funds sold
                 
    For the Full Year Ended December 31,
Statement of Operations (in millions)   2008   2007
Total interest income
  $ 3,351.8     $ 4,278.3  
Total interest expense
    3,069.9       3,911.3  
 
               
Net interest income
    281.9       367.0  
Provision for credit losses
    7.1       1.5  
Other-than-temporary impairment (OTTI) charges
    (266.0 )      
All other income
    73.8       18.0  
All other expense
    56.2       61.1  
 
               
Income before assessments
    26.4       322.4  
Affordable Housing Program
    2.2       26.4  
REFCORP
    4.8       59.2  
 
               
Total assessments
    7.0       85.6  
Net income (2)
  $ 19.4     $ 236.8  
 
               
Supplemental information:
               
Estimated economic losses relating to OTTI charges
  $ 94.4        
(2) The Bank reported a net loss of $187.9 million for fourth quarter 2008

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