Profits Soar at FHLB San Francisco

SAN FRANCISCO – Net income at the Federal Home Loan Bank of San Francisco rose 41% in the fourth quarter, to $155 million, fueled by higher net interest income and adjustments in the fair market value of its derivatives holdings. As a result, the San Francisco Bank reported a 47% surge in fiscal year earnings, to $542 million. That allowed the Bank to boost its fourth quarter dividend to 5.83%, from 4.67% for the fourth quarter in 2005, and to 5.41% for the year, from 4.44% for fiscal 2005. The Bank’s financials were helped by a 22% rise in net interest income for the fourth quarter, and a 23% increase for the full year, due to higher interest rates on average capital balances combined with higher average interest-earning assets. The fourth quarter dividend will be paid in capital stock on Feb. 16 to the Bank’s 340 members, including 40 credit unions.