Earnings Jumped for Pittsburgh FHLBank

The Federal Home Loan Bank of Pittsburgh reported a 61% jump in earnings in 2005 and a 22% increase in advances in filing its first annual report with the Securities and Exchange Commission.The FHLBank also disclosed that its largest source of Mortgage Partnership Finance loans, the National City Bank of PA, is expected to terminate its membership in 2006. The Pittsburgh FHLBank currently holds $7.7 billion in MPF single-family loans, and 90% of those loans were purchased from National City. The FHLBank said it will continue to purchase mortgage loans from community bankers but will no longer buy mortgages on a flow basis from large producers. "This approach has proven to be unworkable, since the Bank could not fully anticipate and hedge deliveries of material volumes of loans," the Pittsburgh bank said. The SEC filing includes restated financial results from 2001 through 2004. Earnings at the FHLBank jumped from $118.9 million in 2004 to $191.8 million in 2005, while advances rose from $39.0 billion to $47.5 billion.