FHLBank Pittsburgh Announces Record Earnings for 2006; First Quarter Dividend Declared.PITTSBURGH -- The Federal Home Loan Bank of Pittsburgh (FHLBank Pittsburgh) announces financial results for the year ended December 31, 2006 and the Board of Directors' declaration of a first-quarter dividend. Operating Results Net income for the year ended December 31, 2006, was $216.5 million, an increase of $24.7 million, or 12.9%, compared to $191.8 million for 2005. The earnings increase was driven primarily by higher net interest income, which increased $34.8 million, or 11.2%, largely due to the rising short-term interest rate environment's impact on net noninterest-bearing funds. Increases in interest income on the investment and loans to members portfolios were partially offset by higher interest expense on consolidated obligations. These 2006 operating results have enabled FHLBank Pittsburgh to set aside $24.2 million for affordable housing programs. For the fourth quarter 2006, net income was $58.2 million, an increase of $11.8 million, or 25.2%, compared to $46.4 million in the fourth quarter of 2005. Net interest income for the fourth quarter, 2006, was $89.3 million, an increase of $12.2 million, or 15.8%, compared to $77.1 million in the same period 2005. "We are pleased with our 2006 financial performance, which reflects the continuing value our members place on advances and adds significantly to our support of affordable housing and community development in our region," said John R. Price, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "As we mark the 75th year of FHLBank history, I believe our results, record earnings for FHLBank Pittsburgh, underscore The underscore character (_) is often used to make file, field and variable names more readable when blank spaces are not allowed. For example, NOVEL_1A.DOC, FIRST_NAME and Start_Routine. (character) underscore - _, ASCII 95. the continuing relevance and importance of this Bank and the entire FHLBank System." Balance Sheet Highlights Total assets at December 31, 2006, were $77.4 billion, an increase of $4.5 billion, or 6.1%, from $72.9 billion at year-end 2005. At December 31, 2006, total loans to members increased $1.8 billion, or 3.9%, to $49.3 billion, compared to $47.5 billion at December 31, 2005. Net mortgage loans held for portfolio decreased $0.7 billion, or 9.0%, to $7.0 billion, down from $7.7 billion at December 31, 2005. FHLBank Pittsburgh's total capital at December 31, 2006, was $3.6 billion, an increase of $0.3 billion, or 11.5%, from $3.3 billion at year-end 2005. Retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. were $254.8 million at December 31, 2006, an increase of $66.3 million, or 35.2%, from $188.5 million at December 31, 2005. Dividend Announcement Based on fourth quarter 2006 results, the Board of Directors declared a first quarter dividend of 5.83 percent annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. . The dividend will be calculated on stockholders' average balances during the period October 1, 2006 to December 31, 2006 and will be credited to stockholders' accounts on Friday, February 23, 2007. Detailed and audited financial information will be available in FHLBank Pittsburgh's 10-K filing, which will be filed in mid-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 Correspondent banking is an account that is established by a domestic banking institution on behalf of a foreign bank for the purpose of handling various financial transactions related to the foreign bank. Correspondent banking allows foreign banks to conduct business in the U.S. , technical assistance, affordable housing grants and other programs so members can better serve their own communities. FHLBank Pittsburgh is privately capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. and funded, does not use taxpayer dollars, and enjoys a triple-A rating. At December 31, 2006, it had 334 members in its district of Delaware, Pennsylvania and West Virginia West Virginia, E central state of the United States. It is bordered by Pennsylvania and Maryland (N), Virginia (E and S), and Kentucky and, across the Ohio R., Ohio (W). Facts and Figures Area, 24,181 sq mi (62,629 sq km). Pop. and approximately $77.4 billion in assets. FHLBank Pittsburgh is one of twelve Banks in the Federal Home Loan Bank System Noun 1. Federal Home Loan Bank System - the central credit system for thrift institutions financial institution, financial organisation, financial organization - an institution (public or private) that collects funds (from the public or other institutions) and , established by Congress in 1932 to support the residential mortgage activities of local financial institutions. This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based upon our current expectations and speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . 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 Prepayment speed Also called speed, the estimated rate at which mortgagors pay off their loans ahead of schedule, critical in assessing the value of mortgage pass-through securities. 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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