PITTSBURGH -- The Federal Home Loan Bank of Pittsburgh reported second-quarter net income of $14.2 million, more than a sixfold increase from the $2.3 million in earnings in the first quarter. The bank, which earned a 9.74% return on equity, paid an annualized dividend rate of 8% in the quarter to its thrift and bank members.
The Pittsburgh home loan bank said its financial performance improved during the quarter because of strong loan demand in spite of a weak housing market and a higher net interest margin. Prepayment fees and gains on the sale of securities also contributed to the second-quarter results.
James D. Roy, president of the bank, said loan demand was driven by customers' eagerness to lock in low interest rates. The briefs were compiled from staff and wire reports.