1. “Working Together for Strength”
July 19, 2011

2. What Will Happen on August 2?

3. The Crisis

4. New and existing home sales remain low.

5. Net Job Loss, October 2006 - September 2010 Non-farm Payroll Data (in thousands)
600
400
200
(200)
(400)
(600)
(800)
(1,000)
1/1/2005
4/1/2005
7/1/2005
10/1/2005
1/1/2006
4/1/2006
7/1/2006
10/1/2006
1/1/2007
4/1/2007
7/1/2007
10/1/2007
1/1/2008
4/1/2008
7/1/2008
10/1/2008
1/1/2009
4/1/2009
7/1/2009
10/1/2009
1/1/2010
4/1/2010
7/1/2010
June 2011: 18,000 non-farm net jobs added
9.2% unemployment rate
Source: Bureau of Labor Statistics

6. The Survey of Professional Forecasters expects the unemployment rate to decline to 8.2% by mid-2012.
Percent
Source: Federal Reserve Bank of Philadelphia; 2011 Q2 SPF.

7. Survey of Professional Forecasters expects CPI inflation of 3
Survey of Professional Forecasters expects CPI inflation of 3.1% in 2011 and 2.2% in 2012.
Percent
(4-Quarter Percent Change)
6.3
4.6
4.0
3.1
2.2
1.5
1.2
Source: Federal Reserve Bank of Philadelphia;
2011 Q2 Survey of Professional Forecasters 7 7

8. Blue Chip Consensus Forecast: GDP and CPI relatively flat for 2012
Consensus Forecast-Quarterly
3Q 4Q 1Q 2Q 3Q 4Q
Key Assumptions in %
Real GDP
Consumer Price Index
Unemployment

9. Survey of Professional Forecasters expects higher short-term rates after 2012 and higher long-term rates as well.
Annual average interest rates projected by SPF:
Year
3-month
T-bill rate
10-year
T-bond rate
AAA Corp.
Bond Yield
2010 (Actual)
0.14%
3.21%
4.94%
2011
0.17%
3.60%
5.25%
2012
1.09%
4.19%
5.69%
2013
2.30%
4.50% NA
2014
3.02%
5.08%
Source: Federal Reserve Bank of Philadelphia;
Survey of Professional Forecasters Q2 2011

10. Looking ahead, the outlook is for positive growth across the nation.10

11. W.Va. And U.S. Economic Growth
(8.6% at May 2011)
Source: Dr. George Hammond, WVU 11

12. Bank Failures 2009 through 6/30/11 distributed by FHLBanks2 1

13. Texas Ratio as of 3/31/11 (institutions open at 3/31/11)6

14. Texas Ratio – WV (Includes all banks open in WV at 3/31/11)

15. WV Liquidity (cash & deposits/assets)- 2 4 6 8
10%
3/31/11
12/31/2010
12/31/2009
121/31/08
12/31/2007
WV Average
Nation Avg.

16. FHLBank Pittsburgh – Resilient and Relevant
Business model has worked for nearly 80 years in all business cycles
Capacity to grow and shrink
Nearly $80 billion in advances in 1Q08
Products and services adjusted to market needs
1,400 affordable housing units in WV through AHP

17. FHLBank Advances/Core Earnings Trend

18. FHLBank Key Metric Trends

19. Regulatory Reform
For community banks, the remedy must be proportional to the problem
FHLBanks are not untouched. Our decisions, programs and products are under the microscope
“Do No Harm” – need to continue to carry out our mission and serve our members

20. Our Six Measures of Long-Term Success
Reliable access to funding and liquidity
Products and services that help your business succeed
Programs and resources to help your communities thrive
Presence and influence with policymakers making critical decisions
Business practices and customer service that make dealing with the Bank not just good business, but a pleasure
A reasonable and consistent market-based return on a safe investment

21. The Need for Partnership
Our industry is in many ways at the center of the storm
We have the resources to emerge from the storm stronger over the long-term
There is great benefit in collaborating on issues of mutual interest
Partnership has never been more important

22. Thank you for your support and guidance.