Member Login


Newsroom

FHLBank San Francisco Announces Annual and Quarterly Operating Results

SAN FRANCISCO, February 21, 2019 — The Federal Home Loan Bank of San Francisco today announced its 2018 operating results. Net income for 2018 was $360 million, compared with net income of $376 million for 2017. Net income for the fourth quarter of 2018 was $73 million, compared with net income of $67 million for the fourth quarter of 2017.

The $16 million decrease in net income for 2018 primarily reflected a decline in other income related to a gain on settlements of $119 million (after netting certain legal fees and expenses) recognized in the first quarter of 2017, which was related to the Bank’s private-label residential mortgage-backed securities litigation. The decrease in other income was partially offset by several factors, including a $35 million decrease in the expense associated with voluntary charitable contributions for the Quality Jobs Fund, from $60 million in 2017 to $25 million in 2018, a $34 million increase in net interest income for 2018 reflecting higher average balances of interest-earning assets and a higher interest rate environment, and improvements in net fair value gains and losses associated with derivatives, hedged items, and financial instruments carried at fair value.

The $6 million increase in net income for the fourth quarter of 2018 primarily reflected a decrease in the expense associated with voluntary charitable contributions for the Quality Jobs Fund, from $10 million in the fourth quarter of 2017 to $5 million in the fourth quarter of 2018, and a $3 million increase in net interest income for the fourth quarter of 2018 relative to the prior-year period, reflecting a higher interest rate environment.

Total assets decreased $14.1 billion to $109.3 billion at December 31, 2018, from $123.4 billion at December 31, 2017. Total advances decreased $4.0 billion, to $73.4 billion at December 31, 2018, from $77.4 billion at December 31, 2017. In addition, investments decreased $11.2 billion, to $32.4 billion at December 31, 2018, from $43.6 billion at December 31, 2017, primarily reflecting a decrease of $7.2 billion in Federal funds sold and a decrease of $4.5 billion in securities purchased under agreements to resell.

As of December 31, 2018, the Bank was in compliance with all of its regulatory capital requirements. The Bank’s total regulatory capital ratio was 6.0%, exceeding the 4.0% requirement. The Bank had $6.5 billion in permanent capital, exceeding its risk-based capital requirement of $1.9 billion. Total retained earnings as of December 31, 2018, were $3.3 billion.

Today, the Bank’s Board of Directors declared a quarterly cash dividend on the capital stock outstanding during the fourth quarter of 2018 at an annualized rate of 7.00%. The quarterly dividend rate is consistent with the Bank's dividend philosophy of endeavoring to pay a quarterly dividend at a rate between 5% and 7% annualized. The quarterly dividend will total $54 million, including $4 million in dividends on mandatorily redeemable capital stock that will be reflected as interest expense in the first quarter of 2019. The Bank expects to pay the dividend on March 14, 2019.

On December 6, 2018, the Bank's Board of Directors declared a special cash dividend of $50 million on the capital stock outstanding during the third quarter of 2018, including $4 million in dividends on mandatorily redeemable capital stock that was reflected as interest expense in the fourth quarter of 2018. The Bank paid the special dividend on December 19, 2018.

Financial Highlights
(Unaudited)
(Dollars in millions)

Selected Balance Sheet Items at Period End

  Dec. 31, 2018 Dec. 31, 2017
Total Assets   $109,326   $123,3