Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Federal Home Loan Bank of Pittsburgh | d766463d8k.htm |
 Member Audio/Web
Conference
August 1, 2014
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/
2014
2013
(Under)
Net interest income
128.1
$
87.5
$
40.6
$
Provision (benefit) for credit losses
(3.5)
(1.3)
(2.2)
Gains on litigation settlements, net
36.6
1.5
35.1
Other income
7.5
13.2
(5.7)
Other expenses
37.3
36.0
1.3
Income before assessment
138.4
67.5
70.9
AHP
13.9
6.9
7.0
Net income
124.5
$
60.6
$
63.9
$
Net interest margin (bps)
38
30
8
Earned dividend spread
8.56%
4.09%
4.47%
Six months ended June 30,
Financial Highlights –
Statement of Income
(in millions)
3 |
 Quarterly Net Income
(in millions)
4
2Qtr 14
1Qtr 14
4Qtr 13
3Qtr 13
2Qtr 13
Net income
44.6
$
79.9
$
43.7
$
43.5
$
32.0
$
Derivative and hedging activity
(9.5)
$
(9.2)
$
16.1
$
5.4
$
7.1
$
Net gains (losses) on trading
securities
6.8
9.8
(5.1)
0.2
0.1
Gains on litigation
settlements, net
-
36.6
-
-
1.5
Net gains on early
extinguishment of debt
-
-
-
9.6
-
|
 Quarterly Advance Trend
5
$20.0
$25.0
$30.0
$35.0
$40.0
$45.0
$50.0
$55.0
Period End Balances
Jun-11
Sep-11
Dec-11
Mar-12
Jun-12
Sep-12
Dec-12
Mar-13
Jun-13
Sep-13
Dec-13
Mar-14
Jun-14
$26.9
$25.8
$30.6
$31.4
$33.6
$37.7
$40.5
$40.0
$40.6
$39.5
$50.3
$46.1
$54.6 |
 Financial Highlights –
Selected Balance Sheet
2014
2013
Amount
Average:
Total assets
68,544
$
59,949
$
8,595
$
14
%
Advances
47,774
37,578
10,196
27
Total investments
16,891
18,206
(1,315)
(7)
June 30,
Dec 31,
2014
2013
Amount
Spot:
Advances
54,624
$
50,248
$
4,376
$
9
%
Capital stock
3,071
2,962
109
4
Retained earnings
765
686
79
12
Percent
Over/(Under)
Over/(Under)
Percent
Six months ended June 30,
(in millions)
(in millions)
6 |
 (in millions)
June 30,
Dec 31,
2014
2013
Permanent capital
3,839
$
3,648
$
Excess permanent capital
over RBC requirement
2,918
$
2,595
$
Capital ratio (4% minimum)
5.2%
5.2%
Leverage ratio (5% minimum)
7.8%
7.7%
Market value/capital stock (MV/CS)
133.1%
128.0%
Capital Requirements
7 |
 Recap of Capital
Plan Changes |
 Changes in Capital Framework
8
Summary of
Modifications
Current (before 10/6/14)
Stock subclasses
none
B1 Membership
B2 Activity
MAV
range:
0.05%
-
1.00%
Requirement = 0.35%
Requirement = 0.10%
starting 10/7
Stock requirement ranges:
Advances
MPF
®
program
Letters of credit
Forward-
commitment advances
3.00%
-
6.00%
0.00%
-
6.00%
0.00%
-
3.00%
none
2.00%
-
6.00%
0.00%
-
6.00%
0.00%
-
6.00%
0.00%
-
6.00%
Dividend distinctions
none
B1 and B2 paid same
throughout 2014; in 2015
and beyond, B2 may have
higher dividends
New (on and after 10/6/14) |
 Member Audio/Web
Conference
August 1, 2014 |