# EDGAR Filing Document

**Accession Number:** 0001316944
**File Stem:** 0001316944-23-000034
**Filing Date:** 2023-2
**Character Count:** 15733
**Document Hash:** 3d9f6d56ad3b6e3db8fb55365458b912
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001316944-23-000034.hdr.sgml**: 20230223

**ACCESSION NUMBER**: 0001316944-23-000034

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20230222

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230223

**DATE AS OF CHANGE**: 20230222

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Federal Home Loan Bank of San Francisco
- **CENTRAL INDEX KEY:** 0001316944
- **STANDARD INDUSTRIAL CLASSIFICATION:** FEDERAL & FEDERALLY-SPONSORED CREDIT AGENCIES [6111]
- **IRS NUMBER:** 946000630
- **STATE OF INCORPORATION:** X1
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-51398
- **FILM NUMBER:** 23654963

**BUSINESS ADDRESS:**
- **STREET 1:** 333 BUSH STREET, SUITE 2700
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94104
- **BUSINESS PHONE:** (415) 616-1000

**MAIL ADDRESS:**
- **STREET 1:** 333 BUSH STREET, SUITE 2700
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94104

?xml version="1.0" ? fhlbsf-20230222

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of**

**The Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported) February 22, 2023**

__________________

**FEDERAL HOME LOAN BANK OF SAN FRANCISCO**

**(Exact name of registrant as specified in its charter)**

__________________

---

| | | |
|:---|:---|:---|
| **Federally chartered corporation** | **000-51398** | **94-6000630** |
| **(State or other jurisdiction of incorporation)** | **(Commission File Number)** | **(IRS Employer Identification No.)** |

---

**333 Bush Street, Suite 2700**

**San Francisco, CA 94104**

**(Address of principal executive offices, including zip code)**

**(415) 616-1000**

**(Registrant's telephone number, including area code)**

**Not Applicable**

**(Former name or former address, if changed since last report)**

__________________

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

 Title of each class Trading Symbol(s) Name of each exchange on which registered <br>  <u>—</u>  <u>—</u>  <u>—</u>

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**Item 2.02 Results of Operations and Financial Condition.**

On February 22, 2023, the Federal Home Loan Bank of San Francisco (the "Bank") issued a news release announcing its operating results for the year ended December 31, 2022, and fourth quarter of 2022, and the declaration of a cash dividend on the capital stock outstanding during the fourth quarter of 2022. A copy of the news release is included as Exhibit 99.1 to this report. The information contained in Exhibit 99.1 is being furnished pursuant to Item 2.02 of this report and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

**Item 7.01 Regulation FD Disclosure.**

On February 22, 2023, the Bank's Board of Directors declared a quarterly cash dividend on the capital stock outstanding during the fourth quarter of 2022 at an annualized rate of 7.00%. The news release set forth above in Item 2.02 is hereby incorporated into Item 7.01 by reference.

**Item 9.01 Financial Statements and Exhibits.**

---

| | | |
|:---|:---|:---|
| (d) | <u>Exhibit</u> | |
| | 99.1 | <u>[News Release dated February](exhibit991newsreleaseq42022.htm)[22](exhibit991newsreleaseq42022.htm)[, 202](exhibit991newsreleaseq42022.htm)[3](exhibit991newsreleaseq42022.htm)[, issued by the Federal Home Loan Bank of San Francisco.](exhibit991newsreleaseq42022.htm)</u> |
| | 104 | <u>Cover Page Interactive Data File (embedded within the Inline XBRL document)</u> |

---

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**Signature(s)**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **Federal Home Loan Bank of San Francisco** | **Federal Home Loan Bank of San Francisco** |
| Date: February 23, 2023 | By: | /s/ Teresa Bryce Bazemore |
|  |  | Teresa Bryce Bazemore<br>President and Chief Executive Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

**Federal Home Loan Bank of San Francisco Announces Annual and Fourth Quarter 2022 Operating Results**

SAN FRANCISCO, February 22, 2023 — The Federal Home Loan Bank of San Francisco (Bank) today announced annual and fourth quarter 2022 operating results. Net income for 2022 was $323 million, compared with net income of $287 million for 2021. Net income for the fourth quarter of 2022 was $117 million, compared with net income of $67 million for the fourth quarter of 2021.

The $36 million increase in net income relative to the prior year was primarily attributable to an increase in net interest income of $45 million and a change in other income/(loss) of $19 million, partially offset by an increase of $21 million in the Bank's provision for credit losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The $45 million increase in net interest income for 2022 was primarily attributable to higher yields on growing average balances of advances and investments (primarily Federal funds sold), which was partially offset by higher funding levels with higher interest costs and a decrease in net gains on designated fair value hedges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The $19 million change in other income/(loss) for 2022 was primarily driven by $28 million in settlement proceeds received in 2022 from the final resolution of putback litigation, to which the Bank was not a party, involving three private-label residential mortgage-backed securities' (PLRMBS) trusts, including one trust in which the Bank owns a certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The increase of $21 million in the provision for credit losses for 2022 was largely attributable to declines in the fair values and the present value of expected cash flows of certain PLRMBS.

For the fourth quarter of 2022, net income was $117 million, an increase of $50 million compared to the same period during the prior year. The increase was primarily attributable to an increase in net interest income of $62 million, which was driven by higher yields on growing average balances of advances and investments (primarily Federal funds sold), and partially offset by higher funding levels with higher interest costs. Additionally, the provision for credit losses increased by $4 million, primarily attributable to a decline in the fair values of certain PLRMBS.

At December 31, 2022, total assets were $121.1 billion, an increase of $67.0 billion from $54.1 billion at December 31, 2021. Advances increased to $89.4 billion at December 31, 2022, from $17.0 billion at December 31, 2021, an increase of $72.4 billion, as member demand for primarily short-term advances increased. Total investments decreased by $5.5 billion to $30.3 billion at December 31, 2022, from $35.8 billion at December 31, 2021. The decrease in investments primarily reflected declines of $8.5 billion in securities purchased under agreements to resell and $2.2 billion in mortgage-backed securities, which were partially offset by increases of $3.3 billion in U.S. Treasury securities and $2.6 billion in interest-bearing deposits to support the Bank's liquidity requirements.

As of December 31, 2022, the Bank complied with all regulatory capital requirements. The Bank exceeded its risk-based capital requirement of $898 million with $7.8 billion in permanent capital and exceeded the 4.0% regulatory requirement with a regulatory capital ratio of 6.4% at December 31, 2022. The decline in the regulatory capital ratio from 10.9% at December 31, 2021, was mainly attributable to an increase in total assets. Total retained earnings increased to $4.0 billion as of December 31, 2022, from $3.8 billion at yearend 2021.

Today, the Bank's board of directors declared a quarterly cash dividend on the average capital stock outstanding during the fourth quarter of 2022 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 $63 million, and the Bank expects to pay the dividend on March 10, 2023.

------

**Financial Highlights**

(Unaudited)

(Dollars in millions)

---

| | | |
|:---|:---|:---|
| **Selected Balance Sheet Items**<br>&nbsp;&nbsp;&nbsp;&nbsp;**at Period End**  | Dec 31, 2022 | Dec 31, 2021 |
| Total Assets | $121056 | $54121 |
| Advances | 89400 | 17027 |
| Mortgage Loans Held for Portfolio, Net | 815 | 980 |
| Investments, Net<sup>1</sup> | 30291 | 35768 |
| Consolidated Obligations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonds | 75768 | 22716 |
| &nbsp;&nbsp;&nbsp;&nbsp;Discount Notes | 35929 | 23987 |
| Capital Stock – Class B – Putable | 3758 | 2061 |
| Unrestricted Retained Earnings | 3262 | 3124 |
| Restricted Retained Earnings | 732 | 708 |
| Accumulated Other Comprehensive Income/(Loss) | (29) | 331 |
| Total Capital | 7723 | 6224 |
| **Selected Other Data at Period End** | Dec 31, 2022 | Dec 31, 2021 |
| Regulatory Capital Ratio<sup>2</sup> | 6.41 | 10.89 |

---

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Three Months Ended | Three Months Ended | Three Months Ended | Twelve Months Ended | Twelve Months Ended | Twelve Months Ended |
| **Selected Operating Results for the Period** | Dec 31, 2022 |  | Dec 31, 2021 | Dec 31, 2022 |  | Dec 31, 2021 |
| Net Interest Income | $181 |  | $119 | $567 |  | $522 |
| Provision for/(Reversal of) Credit Losses | 6 |  | 2 | 15 |  | (6) |
| Other Income/(Loss) |  |  |  | (31) |  | (50) |
| Other Expense | 45 |  | 43 | 162 |  | 159 |
| Affordable Housing Program Assessment | 13 |  | 7 | 36 |  | 32 |
| Net Income/(Loss) | $117 |  | $67 | $323 |  | $287 |
|  | Three Months Ended | Three Months Ended | Three Months Ended | Twelve Months Ended | Twelve Months Ended | Twelve Months Ended |
| **Selected Other Data for the Period** | Dec 31, 2022 |  | Dec 31, 2021 | Dec 31, 2022 |  | Dec 31, 2021 |
| Net Interest Margin<sup>3</sup> | 0.62 | % | 0.87 | 0.66 | % | 0.91 |
| Return on Average Assets | 0.40 |  | 0.48 | 0.37 |  | 0.49 |
| Return on Average Equity | 6.24 |  | 4.08 | 4.67 |  | 4.46 |
| Annualized Dividend Rate<sup>4</sup> | 7.00 |  | 6.00 | 6.30 |  | 5.74 |
| Average Equity to Average Assets Ratio | 6.47 |  | 11.70 | 8.02 |  | 11.00 |

---

&nbsp;&nbsp;&nbsp;&nbsp;

1.&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;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 December 31, 2022 and 2021, was $7.8 billion and $5.9 billion, respectively.

3.&nbsp;&nbsp;&nbsp;&nbsp;Net interest margin is calculated as net interest income (annualized) divided by average interest-earning assets.

4.&nbsp;&nbsp;&nbsp;&nbsp;Cash dividend declared, recorded, and paid during the period, on the average capital stock outstanding during the previous quarter.

------

**Federal Home Loan Bank of San Francisco** <br>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–foster homeownership, expand access to quality housing, seed or sustain small businesses, 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** <br>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 Reports 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; and high rates of inflation and increases in interest rates that may adversely affect our members and their customers. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

**Contact:** 

Mary Long, (415) 616-2556

longm@fhlbsf.com

<br>