PITTSBURGH – The Federal Home Loan Bank of Pittsburgh on Friday announced a loss of $23.6 million for the first quarter, as it continues to struggle under the weight of private-label mortgage-backed securities.
As a result, the Bank eliminated its first quarter dividend and suspended the repurchase of all capital stock.
The loss was primarily due to $30.5 million of other-than-temporary impairment credit loss charges taken on the Bank’s held-to-maturity investment portfolios for the first quarter of 2009 as well as the establishment of a $35.3 million reserve related to the Lehman Brothers Special Financing, Inc. receivable associated with the Lehman Brothers bankruptcy.
The first quarter 2009 net loss prevented FHLB Pittsburgh from setting aside funds for affordable housing programs.
This year’s loss compares to net income of $57.5 million for the first quarter last year.
The Pittsburgh Bank joins FHLBs in Boston, Atlanta, Chicago, Seattle and Indianapolis in reporting losses for the first quarter.
