FHLBank Pittsburgh Reports Third Quarter 2025 Operating Highlights and Financial Results
The Federal Home Loan Bank of Pittsburgh (FHLBank) today released its unaudited financial results for the third quarter and the first nine months of 2025, providing insight into the Bank’s continued commitment to supporting its member institutions and community development initiatives. While the period reflected some shifts in interest rate dynamics and member demand for credit, FHLBank Pittsburgh maintained its focus on strong financial performance and sustained contributions to affordable housing and community investment programs.
Third Quarter Financial Performance
For the third quarter of 2025, FHLBank Pittsburgh reported net income of $97.1 million. This compares to $134.4 million in net income during the same period in 2024, representing a decrease of $37.3 million. The reduction in net income was largely attributable to a decline in net interest income, reflecting both lower average advances and the impact of lower short-term interest rates during the period.
Net interest income for the third quarter stood at $145.0 million, a decrease from $195.3 million in the prior-year quarter. Interest income totaled $998.8 million for the quarter, compared to $1,586.5 million in the third quarter of 2024. The decrease was primarily driven by lower average advances outstanding as well as prevailing lower short-term interest rates. Interest expense also declined to $853.8 million, down from $1,391.2 million in the prior-year period, reflecting reduced consolidated obligations and the effects of lower short-term rates.
Noninterest income for the quarter increased to $3.8 million, up from a negative $3.7 million in the same period last year. This $7.5 million improvement was primarily due to valuation changes in FHLBank’s derivative portfolio, which were influenced by fluctuations in interest rates. Other expenses remained relatively stable at $31.2 million, consistent with $32.6 million in the prior-year quarter.
Credit Portfolio and Community Contributions
FHLBank Pittsburgh continues to maintain a robust credit portfolio to support member liquidity needs and community investment. At the end of the third quarter, advances totaled $42.2 billion, reflecting member demand for liquidity management, which is influenced by loan origination, deposit balances, and investment activities. Mortgage loans held for portfolio, net, stood at $5.2 billion, while standby letters of credit reached $29.4 billion.
In addition to its core lending activities, FHLBank Pittsburgh remains dedicated to supporting affordable housing and community development. The Bank recorded a Statutory Affordable Housing Program (AHP) assessment of $10.8 million for the third quarter, allocated for use in 2026. Furthermore, voluntary contributions to community investment products totaled $8.3 million, supplemented by an additional voluntary contribution to AHP of $1.0 million. FHLBank has committed to contributing at least 5% of the prior year’s pre-assessment net income to community investment programs, targeting a minimum contribution of $35.3 million. These contributions reflect the Bank’s ongoing commitment to enhancing the availability of resources for affordable housing and community development initiatives.
Nine-Month Financial Performance
Looking at the nine-month period ended September 30, 2025, FHLBank Pittsburgh reported net income of $328.9 million, compared to $437.6 million for the same period in 2024. This $108.7 million decrease reflects the continued impact of lower net interest income driven by declining interest rates and a reduced advance portfolio.
Net interest income for the nine months was $485.0 million, down from $588.1 million during the same period last year. Interest income totaled $3,312.7 million, reflecting decreases in both short-term rates and average advances, while interest expense was $2,827.7 million, down from $4,053.6 million in 2024. Noninterest income totaled $5.2 million for the nine-month period, compared with $21.7 million in the prior year, a decrease primarily due to derivative valuation changes stemming from interest rate volatility. Other expenses remained relatively unchanged at $94.7 million, essentially flat compared to $94.8 million in the prior-year period.
Voluntary contributions to community investment products during the nine-month period reached $28.1 million, including a supplemental voluntary contribution to AHP of $2.9 million. This marks a modest increase compared to $27.5 million contributed in the same period last year. The Bank continues its commitment to making supplemental voluntary contributions to ensure that AHP funding aligns with what would have been statutorily required absent voluntary contributions. Statutory AHP assessments for the nine-month period amounted to $36.6 million, compared to $48.8 million in the prior-year period.
Statements of Condition
As of September 30, 2025, FHLBank Pittsburgh reported total assets of $77.9 billion, down from $106.9 billion at year-end 2024. This decline was primarily driven by lower advances, which decreased to $42.2 billion from $69.9 billion at December 31, 2024. These fluctuations in advances are consistent with changes in member liquidity management practices, reflecting broader trends in member loan demand, deposit balances, and investment strategies.
Total capital at September 30, 2025, was $4.7 billion, down from $5.6 billion at December 31, 2024. Retained earnings increased slightly to $2.2 billion, compared to $2.1 billion at year-end 2024. Despite fluctuations in assets and capital, FHLBank Pittsburgh remained in full compliance with all regulatory capital requirements, maintaining a strong balance sheet to support member institutions and community initiatives.
Quarterly Dividends
FHLBank Pittsburgh’s Board of Directors declared quarterly dividends for the third quarter of 2025. Membership (subclass B1) stockholders will receive a dividend at an annualized rate of 4.85%, while activity (subclass B2) stockholders will receive a dividend at an annualized rate of 9.50%. Dividends will be calculated based on average stockholder balances from July 1, 2025, to September 30, 2025, and credited to stockholders’ accounts on October 24, 2025.
Looking forward, FHLBank Pittsburgh emphasized that market and business conditions will continue to influence overall performance and the levels of future dividends. While the Bank intends to provide meaningful returns to stockholders, future dividend rates may not correspond directly with short-term interest rate changes, reflecting the Bank’s focus on long-term financial stability and community support.
Commitment to Community and Member Support
Throughout 2025, FHLBank Pittsburgh has maintained a strong focus on its mission to provide liquidity and financial solutions to its member institutions while supporting affordable housing and community investment initiatives. The combination of statutory AHP assessments, voluntary contributions, and supplemental funding demonstrates the Bank’s dedication to addressing community needs and promoting financial inclusivity.
The Bank’s continued focus on effective risk management, strategic asset-liability management, and targeted community contributions positions it to navigate changing market conditions while fulfilling its mission to support members and local communities. FHLBank Pittsburgh also continues to monitor derivative positions and other financial instruments closely, mitigating risks associated with interest rate volatility.
As FHLBank Pittsburgh progresses through the remainder of 2025, the Bank remains committed to providing value to its member institutions, generating sustainable returns for stockholders, and supporting affordable housing and community development. Detailed financial information for the third quarter and nine months ended September 30, 2025, will be available in the Bank’s Quarterly Report on Form 10-Q, which is expected to be filed no later than November 12, 2025.
Through a combination of prudent financial management, strategic investments, and robust community-focused initiatives, FHLBank Pittsburgh continues to uphold its mission of strengthening financial institutions and supporting communities across its service area. The Bank’s performance in the third quarter and first nine months of 2025 underscores its resilience, commitment to stakeholder value, and dedication to its long-term vision of enhancing economic opportunities for members and communities alike.
