Earnings Surge At FHLB San Francisco

SAN FRANCISCO -- Net income for the Federal Home Loan Bank of San Francisco climbed 21% in the second quarter, to $128 million, the FHLB announced Wednesday. The surge in earnings was due mainly to a 26% increase, or $42 million, in net interest income, to $201 million, over the same period last year. For the first six months of the year, the San Francisco Bank reported a 47% rise in net income to $247 million, compared to the first half in 2005. The rising earnings allowed the FHLB to hike its second quarter dividend to 5.22%, up from 4.21% for the second quarter last year. The annualized dividend rate for the first six months is 5.13%, up from 4.23% for the first half in 2005. The San Francisco Bank has 340 members, including 42 credit unions.