SAN FRANCISCO – The Federal Home Loan Bank of San Francisco said a $168 million gain from derivatives and other financial instruments pushed net income up 30%, to $303 million, for the second quarter of 2009.
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However, FHLB also took a non-credit impairment charge of $1.2 billion and a credit impairment charge of $88 million related to non-agency mortgage-backed securities in its held-to-maturity portfolio.
The impairment was due to a lack of liquidity in the MBS market affecting the valuation of the securities.
As of June 30, 2009, FHLB-SF had a regulatory capital-to-assets ratio of 6.1%, well above its 4% regulatory requirement, and its risk-based capital was $14.6 billion, also well above the $8.2 billion regulatory requirement.
