Federal Home Loan Bank of San Francisco Announces Second Quarter 2024 Operating Results
2024年7月26日 - 7:39AM
The Federal Home Loan Bank of San Francisco (Bank) today announced
its unaudited second quarter 2024 operating results. Net income for
the second quarter of 2024 was $86 million, a decrease of $35
million compared with net income of $121 million for the second
quarter of 2023.
"Our solid operating performance and balance sheet enable us to
provide critical, on-demand liquidity to our members, which in turn
drives economic development, invigorates community lending, and
enables a range of innovative affordable housing programs across
our district," said Alanna McCargo, president and chief executive
officer of the Bank. "In fact, we recently announced $61.8 million
in Affordable Housing Program (AHP) grants – nearly doubling the
previous year's amount – that will fund 59 projects and create
nearly 4,000 units of affordable housing. I am proud of the role
our Bank plays in delivering community impact and remain focused on
partnering with member institutions to deliver on our mission."
The $35 million decrease in net income relative to the
prior-year period was primarily attributable to a decrease in net
interest income of $43 million, partially offset by an improvement
in other income/(loss) of $8 million.
- The $43 million decrease in net
interest income was due to lower average balances of
interest-earning assets and higher costs of interest-bearing
liabilities. The decrease was partially offset by higher yields on
interest-earning assets and lower average balances of
interest-bearing liabilities.
- The $8 million improvement in other
income/(loss) was primarily driven by a net increase in fair value
on the Bank's fair value option instruments and economic
derivatives.
At June 30, 2024, total assets were $86.3 billion, a
decrease of $6.5 billion from $92.8 billion at December 31,
2023. The primary driver of lower assets was a decline in advances,
which decreased by $6.6 billion to $54.7 billion at June 30,
2024, from $61.3 billion at December 31, 2023. Investments at
June 30, 2024, were $30.4 billion, a net increase of $89
million from $30.3 billion at December 31, 2023,
attributable to an increase of $129 million in U.S. Treasury
securities and short-term investments, partially offset by a
decrease of $40 million in mortgage-backed securities.
In early July, the Bank announced that $61.8 million in AHP
grants have been awarded in the 2024 AHP General Fund and Nevada
Targeted Fund program cycle to support projects throughout its
district comprised of Arizona, California, and Nevada. Since 1990,
the Bank has awarded $1.3 billion in AHP grants for the
construction, preservation, or purchase of 154,000 units of
housing. Collectively, the Federal Home Loan Bank System is one of
the largest private sources of affordable housing funding in the
nation. Each year, the Bank allocates up to 15% of its net profits
from the prior year to fund affordable housing, homeownership, and
economic development grant programs.
As of June 30, 2024, the Bank exceeded all regulatory
capital requirements. The Bank exceeded its 4.0% regulatory
requirement with a regulatory capital ratio of 8.6% at
June 30, 2024. The increase in the regulatory capital ratio
from 8.0% at December 31, 2023, mainly resulted from the
decrease in total assets during the first six months of 2024. The
Bank also exceeded its risk-based capital requirement of $1.1
billion with $7.4 billion in permanent capital. Total retained
earnings increased to $4.4 billion at June 30, 2024, from $4.3
billion at December 31, 2023.
Today, the Bank’s board of directors declared a quarterly cash
dividend on the average capital stock outstanding during the second
quarter of 2024 at an annualized rate of 8.75%. The quarterly
dividend rate is consistent with the Bank's dividend philosophy of
endeavoring to pay a quarterly dividend rate that is equal to or
greater than the current market rate for highly rated investments
and that is sustainable under current and projected earnings while
maintaining appropriate levels of capital. The quarterly dividend
will total $65 million, and the Bank expects to pay the dividend on
August 13, 2024.
Financial Highlights(Unaudited)(Dollars in
millions)
Selected Balance Sheet
Items at Period End |
Jun 30, 2024 |
|
Dec 31, 2023 |
|
Total Assets |
$ |
86,331 |
|
$ |
92,828 |
|
|
Advances |
|
54,735 |
|
|
61,335 |
|
|
Mortgage Loans Held for
Portfolio, Net |
|
724 |
|
|
754 |
|
|
Investments, Net1 |
|
30,383 |
|
|
30,294 |
|
|
Consolidated Obligations: |
|
|
|
|
Bonds |
|
54,925 |
|
|
64,297 |
|
|
Discount
Notes |
|
22,316 |
|
|
19,187 |
|
|
Mandatorily Redeemable Capital
Stock |
|
565 |
|
|
706 |
|
|
Capital Stock – Class B –
Putable |
|
2,449 |
|
|
2,450 |
|
|
Retained Earnings |
|
4,396 |
|
|
4,290 |
|
|
Accumulated Other
Comprehensive Income/(Loss) |
|
56 |
|
|
(72 |
) |
|
Total Capital |
|
6,901 |
|
|
6,668 |
|
|
|
|
|
|
|
Selected Other Data at
Period End |
Jun 30, 2024 |
|
Dec 31, 2023 |
|
Regulatory Capital Ratio2 |
|
8.58 |
% |
|
8.02 |
|
% |
|
Three Months Ended |
|
Six Months Ended |
|
Selected Operating
Results for the Period |
Jun 30, 2024 |
|
Jun 30, 2023 |
|
Jun 30, 2024 |
|
Jun 30, 2023 |
|
Net Interest Income |
$ |
136 |
|
$ |
179 |
|
$ |
286 |
|
|
$ |
466 |
|
|
Provision for/(Reversal of)
Credit Losses |
|
3 |
|
|
1 |
|
|
(1 |
) |
|
|
— |
|
|
Other Income/(Loss) |
|
12 |
|
|
4 |
|
|
48 |
|
|
|
(22 |
) |
|
Other Expense |
|
47 |
|
|
48 |
|
|
97 |
|
|
|
93 |
|
|
Affordable Housing Program
Assessment |
|
12 |
|
|
13 |
|
|
28 |
|
|
|
35 |
|
|
Net Income/(Loss) |
$ |
86 |
|
$ |
121 |
|
$ |
210 |
|
|
$ |
316 |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
Selected Other Data
for the Period |
Jun 30, 2024 |
|
Jun 30, 2023 |
|
Jun 30, 2024 |
|
Jun 30, 2023 |
|
Net Interest Margin3 |
|
0.65 |
% |
|
0.55 |
% |
|
0.67 |
|
% |
|
0.71 |
|
% |
Return on Average Assets |
|
0.41 |
|
|
0.36 |
|
|
0.49 |
|
|
|
0.48 |
|
|
Return on Average Equity |
|
5.10 |
|
|
6.52 |
|
|
6.28 |
|
|
|
8.37 |
|
|
Annualized Dividend Rate4 |
|
8.75 |
|
|
7.00 |
|
|
8.75 |
|
|
|
7.00 |
|
|
Average Equity to Average
Assets Ratio |
|
8.01 |
|
|
5.57 |
|
|
7.76 |
|
|
|
5.75 |
|
|
1. |
Investments consist of federal funds sold, interest-bearing
deposits, trading securities, available-for-sale securities,
held-to-maturity securities, and securities purchased under
agreements to resell. |
2. |
The regulatory capital ratio is calculated as regulatory capital
divided by total assets. Regulatory capital includes retained
earnings, Class B capital stock, and mandatorily redeemable capital
stock (which is classified as a liability), but excludes
accumulated other comprehensive income/(loss). Total regulatory
capital as of June 30, 2024, and December 31, 2023, was
$7.4 billion. |
3. |
Net interest margin is calculated as net interest income
(annualized) divided by average interest-earning assets. |
4. |
Cash dividends are declared, recorded, and paid during the period,
on the average capital stock outstanding during the previous
quarter. |
|
|
Federal Home Loan Bank of San Francisco The
Federal Home Loan Bank of San Francisco is a member-driven
cooperative helping local lenders in Arizona, California, and
Nevada build strong communities, create opportunity, and change
lives for the better. The tools and resources we provide to our
member financial institutions–commercial banks, credit unions,
industrial loan companies, savings institutions, insurance
companies, and community development financial institutions propel
homeownership, finance affordable housing, drive economic vitality,
and revitalize whole neighborhoods. Together with our members and
other partners, we are making the communities we serve more
vibrant, equitable, and resilient.
Safe Harbor Statement under the Private Securities
Litigation Reform Act of 1995 This press release contains
forward-looking statements within the meaning of the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995,
including statements related to the Bank’s dividend philosophy and
dividend rates. These statements are based on our current
expectations and speak only as of the date hereof. These statements
may use forward-looking terms, such as “endeavoring,” “will,” and
“expects,” or their negatives or other variations on these terms.
The Bank cautions that by their nature, forward-looking statements
involve risk or uncertainty and that actual results could differ
materially from those expressed or implied in these forward-looking
statements or could affect the extent to which a particular
objective, projection, estimate, or prediction is realized,
including future dividends. These forward-looking statements
involve risks and uncertainties including, but not limited to, the
Risk Factors set forth in our Annual Report on Form 10-K and other
periodic and current reports that we may file with the Securities
and Exchange Commission, as well as regulatory and accounting rule
adjustments or requirements; the application of accounting
standards relating to, among other things, certain fair value gains
and losses; hedge accounting of derivatives and underlying
financial instruments; the fair values of financial instruments;
the allowance for credit losses; future operating results; the
withdrawal of one or more large members; high inflation and
interest rates that may adversely affect our members and their
customers; and our ability to pay a quarterly dividend rate that is
equal to or greater than similar current rates for highly rated
investments. We undertake no obligation to revise or update
publicly any forward-looking statements for any reason.
Contact:
Tom Flannigan, (415) 616-2695
flannigt@fhlbsf.com