FHLB-Pittsburgh Earnings Rise

The Federal Home Loan Bank of Pittsburgh reported second quarter earnings of $53.9 million, up sharply from the second quarter of 2005 when derivative losses due to its mortgage hedging activities dragged down earnings to $7.4 million.The $74.7 billion-asset FHLBank also reported that the National City Bank of Pennsylvania -- its largest supplier of single-family mortgage -- terminated its membership on July 22. NCBP-originated mortgages make up 90% of the FHLBank's $7.4 billion mortgage portfolio. The Pittsburgh FHLBank currently is carrying a $680,000 allowance for possible mortgage loan losses. As a result of a charter consolidation, National City Bank, Cleveland, has branches in seven states and it has retained its membership in the Cincinnati FHLBank, which also has a mortgage purchase program. Over 50% of the Cincinnati FHLBank's mortgage portfolio is comprised of NCB loans.