The Federal Home Loan Bank of Pittsburgh (FHLB Pittsburgh)

What the Bank is

The Federal Home Loan Bank of Pittsburgh is one of 11 Federal Home Loan Banks in the FHLBank System. It operates as a cooperative, privately capitalized by its member institutions and chartered as a federal instrumentality. The Bank raises funds in the capital markets and provides liquidity to its members and selected housing-related borrowers.

Mission and core purpose

Provide members with readily available liquidity to support housing finance and community development in its district (Delaware, Pennsylvania, and West Virginia). Primary credit products:

• Advances secured by eligible collateral for short- and long-term liquidity needs (fixed and floating structures; various maturities).
• Purchase of residential mortgage loans through the Mortgage Partnership Finance (MPF) program.

Primary funding and operations

• Funds are raised through consolidated obligation bonds and discount notes issued by the Office of Finance on behalf of the FHLBanks.
• The Bank provides funding to members via advances, letters of credit, and related services; it purchases mortgage loans through MPF and manages credit, interest-rate, and liquidity risk associated with those activities.
• The Bank also offers noncredit services and community programs, including affordable housing grants, letters of credit, and securities safekeeping.

Key programs and products

• Advances: Structures include overnight, fixed-rate, floating-rate, amortizing and non-amortizing options, with maturities from 1 day to 30 years. Advances are collateralized with eligible assets subject to haircuts.
• Letters of Credit: Standby letters of credit backed by collateral to support member obligations.
• MPF Program: Participating Financial Institutions (PFIs) can originate and deliver conventional conforming loans to the Bank. MPF products include MPF Original, MPF 35, MPF Government, and MPF Xtra. MPF Xtra allows certain transactions to be sold to the Bank’s MPF partner (FHLB Chicago) and then to Fannie Mae; PFIs using MPF Xtra do not pay credit enhancement fees for that product.
• MPF Service Arrangements: The Bank does not service loans. MPF servicing is provided by the MPF provider and Computershare for master servicing.

Membership and customers (as of December 31, 2025)

• PFIs: 111 approved Participating Financial Institutions in the MPF program.
• Concentration: The Bank’s five largest customers accounted for 69.6% of total credit exposure and owned 51.3% of outstanding Bank capital stock.
• MPF concentration: The three largest PFIs accounted for 57% of mortgage loans purchased by the Bank; a single PFI represented 35.9% of the Bank’s total outstanding MPF portfolio.
• MPF Xtra eligibility: 26 PFIs were eligible to offer MPF Xtra.

Employees and human capital (2025)

• Full-time employees: 245
• Part-time employees: 0

Capital and liquidity resources

• Capital stock: Two subclasses — B1 (membership) and B2 (activity). Par value is $100 per share. Membership stock requirements are defined by a Capital Plan; stock can be redeemed after five years’ notice.
• Retained earnings: $2,245.7 million (as of 12/31/2025), of which $783.4 million was restricted.
• Capital actions: Dividends may be paid from unrestricted retained earnings or current net income; the Bank may repurchase excess capital stock.
• The Bank monitors capital and liquidity against regulatory requirements.

Derivative and investment activities

• Derivatives: The Bank may use interest rate swaps, swaptions, caps/floors, and futures/forwards to manage interest-rate and prepayment risk. All derivatives are recorded at fair value.
• Investments: Include short-term liquidity instruments, a contingency liquidity portfolio, mortgage-backed securities (MBS), agency and non-agency securities, and a largely run-off portfolio (no private-label MBS purchases since 2007).
• Regulatory limits: There are regulatory prohibitions on certain investments and limits on MBS holdings relative to regulatory capital.

Liquidity and debt structure (as of December 31, 2025)

• Bank consolidated obligations:
  • Bonds: $50,887.3 million
  • Discount notes: $16,813.6 million
  • Total Bank consolidated obligations: $67,700.9 million
• FHLB System consolidated obligations: $1,151,784.0 million (system-wide).
• The Office of Finance coordinates issuance, market management, and engagement with rating agencies and the U.S. Treasury.

Geographic and physical footprint

• Headquarters: 301 Grant Street, Pittsburgh, PA 15219 (approximately 57,047 square feet).
• Offsite data centers located in Pennsylvania and Virginia.
• Additional office space in Allentown, PA for community engagement and a Washington, DC office (shared with other FHLBanks) for government relations, approximately 3,000 square feet.

Regulatory and governance framework

• Regulated by the Federal Housing Finance Agency (FHFA) and subject to SEC rules and the Government Corporation Control Act.
• Internal governance includes an Audit Committee, a Risk Management Committee, and a Chief Information Security Officer with active cybersecurity and risk management programs.

Risk context

The Bank is exposed to regulatory change, interest-rate and prepayment risk, credit risk among member institutions, liquidity risk, cyber risk, and geopolitical or macroeconomic disruptions. These risks are addressed in the Bank’s risk management and Form 10-K disclosures.

Overview

FHLB Pittsburgh is a cooperative government-sponsored entity providing liquidity to member financial institutions in its district through collateralized advances and mortgage purchases via the MPF program. It is funded through consolidated obligation debt issued with the Office of Finance, maintains a sizable capital base and concentration of exposure among a few members, and employs 245 full-time staff.