# EDGAR Filing Document

**Accession Number:** 0001316944
**File Stem:** 0001316944-25-000160
**Filing Date:** 2025-8
**Character Count:** 353437
**Document Hash:** abae6822ad139b01e9d8782e02457c58
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001316944-25-000160.hdr.sgml**: 20250801

**ACCESSION NUMBER**: 0001316944-25-000160

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 93

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250801

**DATE AS OF CHANGE**: 20250801

**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]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 946000630
- **STATE OF INCORPORATION:** X1
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-51398
- **FILM NUMBER:** 251176857

**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' encoding='ASCII'? fhlbsf-20250630

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549** 

**____________________________________**

**FORM 10-Q** 

**______________________________________________________**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended June 30, 2025** 

**OR** 

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**Commission File Number: 000-51398** 

**FEDERAL HOME LOAN BANK OF SAN FRANCISCO** 

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

**___________________________________________**

---

| | | |
|:---|:---|:---|
| **Federally chartered corporation of the United States** | **Federally chartered corporation of the United States** | **94-6000630** |
| (State or other jurisdiction of incorporation or organization) | (State or other jurisdiction of incorporation or organization) | (I.R.S. employer identification number) |
| **333 Bush Street, Suite 2700** | **333 Bush Street, Suite 2700** |  |
| **San Francisco,** | **CA** | **94104** |
| (Address of principal executive offices) | (Address of principal executive offices) | (Zip code) |

---

**(415) 616-1000** 

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

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** |

---

**___________________________________________**

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;☒ Yes&nbsp;&nbsp;&nbsp;&nbsp;☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).&nbsp;&nbsp;&nbsp;&nbsp;☒ Yes&nbsp;&nbsp;&nbsp;&nbsp;☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☐ |
| | | 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. &nbsp;&nbsp;&nbsp;&nbsp; ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).&nbsp;&nbsp;&nbsp;&nbsp;☐ Yes&nbsp;&nbsp;&nbsp;&nbsp;☒ No

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

---

| | |
|:---|:---|
| | Shares Outstanding as of July 29, 2025 |
| Class B Stock, par value $100 per share | 28750606 |

---

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco** 

**Form 10-Q**

 **Index**

---

| | | |
|:---|:---|:---|
| **PART I.** | **<u>[FINANCIAL INFORMATION](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_10)</u>** | |
| Item 1. | <u>[Financial Statements](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_13)</u> | <u>[1](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_13)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Statements of Condition (Unaudited)](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_16)</u> | <u>[1](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_16)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Statements of Income (Unaudited)](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_22)</u> | <u>[2](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_22)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Statements of Comprehensive Income/(Loss) (Unaudited)](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_25)</u> | <u>[3](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_25)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Statements of Capital Accounts (Unaudited)](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_28)</u> | <u>[4](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_28)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Statements of Cash Flows (Unaudited)](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_37)</u> | <u>[5](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_37)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Notes to Financial Statements (Unaudited)](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_40)</u> | <u>[7](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_40)</u> |
| Item 2. | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_88)</u> | <u>[31](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_88)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Quarterly Overview](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_91)</u> | <u>[32](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_91)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Financial Highlights](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_94)</u> | <u>[33](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_94)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Results of Operations](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_97)</u> | <u>[34](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_97)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Financial Condition](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_106)</u> | <u>[45](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_106)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Liquidity and Capital Resources](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_121)</u> | <u>[47](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_121)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Risk Management](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_124)</u> | <u>[48](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_124)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Critical Accounting Estimates](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_136)</u> | <u>[53](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_136)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Recently Issued Accounting Guidance and Interpretations](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_139)</u> | <u>[54](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_139)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Legislative and Regulatory Developments](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_142)</u> | <u>[54](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_142)</u> |
| Item 3. | <u>[Quantitative and Qualitative Disclosures About Market Risk](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_145)</u> | <u>[54](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_145)</u> |
| Item 4. | <u>[Controls and Procedures](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_148)</u> | <u>[55](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_148)</u> |
| **PART II.** | **<u>[OTHER INFORMATION](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_151)</u>** |  |
| Item 1. | <u>[Legal Proceedings](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_154)</u> | <u>[57](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_154)</u> |
| Item 1A. | <u>[Risk Factors](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_157)</u> | <u>[57](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_157)</u> |
| Item 2. | <u>[Unregistered Sales of Equity Securities and Use of Proceeds](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_160)</u> | <u>[57](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_160)</u> |
| Item 3. | <u>[Defaults Upon Senior Securities](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_163)</u> | <u>[57](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_163)</u> |
| Item 4. | <u>[Mine Safety Disclosures](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_166)</u> | <u>[57](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_166)</u> |
| Item 5. | <u>[Other Information](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_169)</u> | <u>[57](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_169)</u> |
| Item 6. | <u>[Exhibits](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_172)</u> | <u>[58](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_172)</u> |
| <u>[Signatures](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_175)</u> | <u>[Signatures](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_175)</u> | <u>[59](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_175)</u> |

---

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**PART I. FINANCIAL INFORMATION**

**ITEM 1. &nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL STATEMENTS**

**Federal Home Loan Bank of San Francisco** 

**Statements of Condition**

(Unaudited)

---

| | | |
|:---|:---|:---|
| (In millions-except par value) | **June 30,<br>2025** | **December 31,<br>2024** |
| Assets: |  |  |
| Cash and due from banks | $8 | $2 |
| Interest-bearing deposits | 3583 | 3765 |
| Securities purchased under agreements to resell | 11750 | 7750 |
| Federal funds sold | 4985 | 1645 |
| Available-for-sale (AFS) securities, net of allowance for credit losses of $33 and $30, respectively (amortized cost of $20,443 and $20,274, respectively) | 20462 | 20312 |
| Held-to-maturity (HTM) securities (fair values of $1,320 and $1,469, respectively) | 1335 | 1489 |
| Advances (includes $6,061 and $5,286 at fair value under the fair value option, respectively) | 39909 | 45637 |
| Mortgage loans held for portfolio, net of allowance for credit losses of $1 and $1, respectively | 666 | 693 |
| Accrued interest receivable | 190 | 181 |
| Derivative assets, net | 32 | 30 |
| Other assets | 226 | 231 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Assets | $83146 | $81735 |
| Liabilities: |  |  |
| Deposits | $1775 | $1061 |
| Consolidated obligations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonds (includes $388 and $436 at fair value under the fair value option, respectively) | 54061 | 58174 |
| &nbsp;&nbsp;&nbsp;Discount notes | 19174 | 14378 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total consolidated obligations | 73235 | 72552 |
| Mandatorily redeemable capital stock | 131 | 331 |
| Accrued interest payable | 375 | 412 |
| Affordable Housing Program (AHP) payable | 142 | 140 |
| Derivative liabilities, net | 33 | 8 |
| Other liabilities | 269 | 227 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities | 75960 | 74731 |
| Commitments and Contingencies (Note 12) |  |  |
| Capital: |  |  |
| Capital stock—Class B—Putable ($100 par value) issued and outstanding: |  |  |
| 26 shares and 25 shares, respectively | 2575 | 2458 |
| Unrestricted retained earnings | 3749 | 3668 |
| Restricted retained earnings | 815 | 815 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Retained Earnings | 4564 | 4483 |
| Accumulated other comprehensive income/(loss) (AOCI) | 47 | 63 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Capital | 7186 | 7004 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities and Capital | $83146 | $81735 |

---

The accompanying notes are an integral part of these financial statements.

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco**

**Statements of Income**

(Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>(In millions) | **2025** | **2024** | **2025** | **2024** |
| **Interest Income:** |  |  |  |  |
| Advances | $533 | $731 | $1006 | $1490 |
| Interest-bearing deposits | 41 | 62 | 85 | 115 |
| Securities purchased under agreements to resell | 32 | 14 | 48 | 39 |
| Federal funds sold | 68 | 59 | 127 | 134 |
| AFS securities | 270 | 292 | 538 | 575 |
| HTM securities | 17 | 24 | 35 | 49 |
| Mortgage loans held for portfolio | 5 | 5 | 10 | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Interest Income | 966 | 1187 | 1849 | 2413 |
| **Interest Expense:** |  |  |  |  |
| Consolidated obligations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonds | 606 | 786 | 1200 | 1636 |
| &nbsp;&nbsp;&nbsp;&nbsp;Discount notes | 200 | 218 | 326 | 411 |
| Deposits | 15 | 19 | 31 | 36 |
| Mandatorily redeemable capital stock | 3 | 28 | 8 | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Interest Expense | 824 | 1051 | 1565 | 2127 |
| **Net Interest Income** | 142 | 136 | 284 | 286 |
| Provision for/(reversal of) credit losses | 3 | 3 | 4 | (1) |
| **Net Interest Income After Provision for/(Reversal of) Credit Losses** | 139 | 133 | 280 | 287 |
| **Other Income/(Loss):** |  |  |  |  |
| Net gain/(loss) on advances and consolidated obligation bonds held under fair value option | 8 | 3 | 37 | (11) |
| Net gain/(loss) on derivatives | 1 | 3 | (14) | 18 |
| Standby letters of credit fees | 5 | 4 | 10 | 9 |
| Termination of long-term funding arrangement |  |  |  | 30 |
| Other, net | 3 | 2 | 4 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Other Income/(Loss) | 17 | 12 | 37 | 48 |
| **Other Expense:** |  |  |  |  |
| Compensation and benefits | 24 | 27 | 53 | 56 |
| Other operating expense | 13 | 15 | 28 | 29 |
| Federal Housing Finance Agency | 2 | 2 | 4 | 4 |
| Office of Finance | 2 | 2 | 3 | 3 |
| Voluntary housing and community investment contributions  | 10 | 2 | 20 | 6 |
| Other, net |  | (1) | (1) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Other Expense | 51 | 47 | 107 | 97 |
| **Income/(Loss) Before Assessment** | 105 | 98 | 210 | 238 |
| AHP assessment | 11 | 12 | 22 | 28 |
| **Net Income/(Loss)** | $94 | $86 | $188 | $210 |

---

The accompanying notes are an integral part of these financial statements.

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco** 

**Statements of Comprehensive Income/(Loss)**

(Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>(In millions) | **2025** | **2024** | **2025** | **2024** |
| **Net Income/(Loss)** | $94 | $86 | $188 | $210 |
| Other Comprehensive Income/(Loss): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net unrealized gain/(loss) on AFS securities | (35) | 29 | (16) | 128 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive income/(loss) | (35) | 29 | (16) | 128 |
| **Total Comprehensive Income/(Loss)** | $59 | $115 | $172 | $338 |

---

The accompanying notes are an integral part of these financial statements.

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco** 

**Statements of Capital Accounts**

(Unaudited)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Capital Stock<br>Class B—Putable** | **Capital Stock<br>Class B—Putable** | **Retained Earnings** | **Retained Earnings** | **Retained Earnings** | | **Total<br>Capital** |
|<br>(In millions) | **Shares** | **Par Value** | **Restricted** | **Unrestricted** | **Total** |<br>**AOCI** | **Total<br>Capital** |
| Balance, March 31, 2024 | 24 | $2392 | $815 | $3546 | $4361 | $27 | $6780 |
| Comprehensive income/(loss) |  |  |  | 86 | 86 | 29 | 115 |
| Issuance of capital stock | 5 | 507 |  |  |  |  | 507 |
| Repurchase of capital stock | (5) | (450) |  |  |  |  | (450) |
| Cash dividends paid on capital stock |  |  |  | (51) | (51) |  | (51) |
| Balance, June 30, 2024 | 24 | $2449 | $815 | $3581 | $4396 | $56 | $6901 |
| Balance, March 31, 2025 | 24 | $2443 | $815 | $3707 | $4522 | $82 | $7047 |
| Comprehensive income/(loss) |  |  |  | 94 | 94 | (35) | 59 |
| Issuance of capital stock | 12 | 1087 |  |  |  |  | 1087 |
| Repurchase of capital stock | (10) | (955) |  |  |  |  | (955) |
| Cash dividends paid on capital stock |  |  |  | (52) | (52) |  | (52) |
| Balance, June 30, 2025 | 26 | $2575 | $815 | $3749 | $4564 | $47 | $7186 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Capital Stock<br>Class B—Putable** | **Capital Stock<br>Class B—Putable** | **Retained Earnings** | **Retained Earnings** | **Retained Earnings** | | **Total<br>Capital** |
|<br>(In millions) | **Shares** | **Par Value** | **Restricted** | **Unrestricted** | **Total** |<br>**AOCI** | **Total<br>Capital** |
| Balance, December 31, 2023 | 25 | $2450 | $815 | $3475 | $4290 | $(72) | $6668 |
| Comprehensive income/(loss) |  |  |  | 210 | 210 | 128 | 338 |
| Issuance of capital stock | 10 | 989 |  |  |  |  | 989 |
| Repurchase of capital stock | (10) | (954) |  |  |  |  | (954) |
| Capital stock reclassified from/(to) mandatorily redeemable capital stock, net | (1) | (36) |  |  |  |  | (36) |
| Cash dividends paid on capital stock |  |  |  | (104) | (104) |  | (104) |
| Balance, June 30, 2024 | 24 | $2449 | $815 | $3581 | $4396 | $56 | $6901 |
| Balance, December 31, 2024 | 25 | $2458 | $815 | $3668 | $4483 | $63 | $7004 |
| Comprehensive income/(loss) |  |  |  | 188 | 188 | (16) | 172 |
| Issuance of capital stock | 15 | 1462 |  |  |  |  | 1462 |
| Repurchase of capital stock | (14) | (1345) |  |  |  |  | (1345) |
| Cash dividends paid on capital stock |  |  |  | (107) | (107) |  | (107) |
| Balance, June 30, 2025 | 26 | $2575 | $815 | $3749 | $4564 | $47 | $7186 |

---

The accompanying notes are an integral part of these financial statements.

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco** 

**Statements of Cash Flows**

(Unaudited)

---

| | | |
|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>(In millions) | **2025** | **2024** |
| **Cash Flows from Operating Activities:** |  |  |
| Net Income/(Loss) | $188 | $210 |
| Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization/(accretion) | 34 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for/(reversal of) credit losses | 4 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in net fair value adjustment on advances and consolidated obligation bonds held under the fair value option | (37) | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in net derivatives and hedging activities | (519) | 298 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other adjustments, net |  | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest receivable | (11) | (17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets |  | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest payable | (37) | (113) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | (11) | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total adjustments | (577) | 177 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by/(used in) operating activities | (389) | 387 |
| **Cash Flows from Investing Activities:** |  |  |
| Net change in: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing deposits | 288 | (963) |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities purchased under agreements to resell | (4000) | 350 |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal funds sold | (3340) | 1416 |
| AFS securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from maturities and paydowns | 2090 | 131 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases | (1710) | (1389) |
| HTM securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from maturities and paydowns | 153 | 192 |
| Advances: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Repaid | 364635 | 450006 |
| &nbsp;&nbsp;&nbsp;&nbsp;Originated | (358702) | (443488) |
| Mortgage loans held for portfolio: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal collected | 26 | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by/(used in) investing activities | (560) | 6283 |

---

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco** 

**Statements of Cash Flows (continued)**

(Unaudited)

---

| | | |
|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>(In millions) | **2025** | **2024** |
| **Cash Flows from Financing Activities:** |  |  |
| Net change in deposits and other financing activities | 633 | (160) |
| Net proceeds/(payments) on derivative contracts with financing elements | 6 | 11 |
| Net proceeds from issuance of consolidated obligations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonds | 33729 | 26380 |
| &nbsp;&nbsp;&nbsp;&nbsp;Discount notes | 44320 | 40037 |
| Payments for matured and retired consolidated obligations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonds | (38019) | (35814) |
| &nbsp;&nbsp;&nbsp;&nbsp;Discount notes | (39524) | (36877) |
| Proceeds from issuance of capital stock | 1462 | 989 |
| Payments for repurchase/redemption of mandatorily redeemable capital stock | (200) | (177) |
| Payments for repurchase of capital stock | (1345) | (954) |
| Cash dividends paid | (107) | (104) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by/(used in) financing activities | 955 | (6669) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net increase/(decrease) in cash and due from banks | 6 | 1 |
| Cash and due from banks at beginning of the period | 2 | 5 |
| Cash and due from banks at end of the period | $8 | $6 |
| **Supplemental Disclosures:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest paid | $1643 | $2193 |
| **Supplemental Disclosures of Non-cash Investing and Financing Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers of capital stock to mandatorily redeemable capital stock |  | 36 |

---

The accompanying notes are an integral part of these financial statements.

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco**

**Notes to Financial Statements**

**Note 1 — Basis of Presentation and Significant Accounting Policies**

The information about the Federal Home Loan Bank of San Francisco (Bank) included in these unaudited financial statements reflects all adjustments that, in the opinion of the Bank, are necessary for a fair statement of results for the periods presented. These adjustments are of a recurring nature, unless otherwise disclosed. The results of operations in these interim statements are not necessarily indicative of the results to be expected for any subsequent period or for the year ending December 31, 2025. These unaudited financial statements should be read in conjunction with the Bank's Annual Report on Form 10-K for the year ended December 31, 2024 (2024 Form 10-K).

**Use of Estimates.** The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make a number of judgments, estimates, and assumptions that may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of income, expenses, gains, and losses during the reporting period. The most significant of these estimates is the accounting for derivatives and hedging activities. Actual results could differ significantly from these estimates.

Descriptions of the Bank's significant accounting policies are included in "Item 8. Financial Statements and Supplementary Data – Note 1 – Summary of Significant Accounting Policies" in the Bank's 2024 Form 10-K. There have been no significant changes to the Bank's accounting policies since the Bank's 2024 Form 10-K.

**Note 2 — Recently Issued and Adopted Accounting Guidance**

There have been no recently adopted accounting standards that have had a material effect on the Bank's financial statements. The following table provides a summary of recently issued accounting standards that may have an effect on the Bank's financial statements.

---

| | | | |
|:---|:---|:---|:---|
| **Accounting Standards Update (ASU)** | **Description** | **Effective Date** | **Effect on the Financial Statements or Other Significant Matters** |
| Disaggregation of Income Statement Expenses (ASU 2024-03) | This update requires disclosure, in the notes to the financial statements, of specified information about certain costs and expenses on an interim and annual basis. | This guidance becomes effective for the Bank for the annual period ending December 31, 2027, and for interim and annual periods thereafter. Early adoption is permitted. | The Bank does not intend to adopt this guidance early. While adoption of this guidance may affect the Bank's disclosures, it will not have any effect on the Bank's financial condition, results of operations, or cash flows. |

---

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco**

**Notes to Financial Statements (continued)**

**Note 3 — Investments**

The Bank makes short-term investments in interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold, and may make other investments in debt securities, which are classified as AFS or HTM.

***Interest-Bearing Deposits, Securities Purchased under Agreements to Resell, and Federal Funds Sold***

At June 30, 2025, and December 31, 2024, all investments in interest-bearing deposits and federal funds sold were repaid or expected to be repaid according to the relevant contractual terms. No allowance for credit losses was recorded for these assets at June 30, 2025, and December 31, 2024. Carrying values of interest-bearing deposits and federal funds sold exclude accrued interest receivable of $13 million and $1 million, respectively, as of June 30, 2025, and $15 million and a de minimis amount, respectively, as of December 31, 2024.

Based upon the collateral held as security and collateral maintenance provisions with its counterparties, the Bank determined that no allowance for credit losses was needed for its securities purchased under agreements to resell at June 30, 2025, and December 31, 2024. The carrying value of securities purchased under agreements to resell excludes $1 million of accrued interest receivable as of June 30, 2025, and December 31, 2024, respectively.

***Debt Securities***

**Available-for-Sale Securities.** The amortized cost and fair value of AFS securities by major security type as of June 30, 2025, and December 31, 2024, were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **June 30, 2025**<br>(In millions) |<br>**Amortized**<br>**Cost** |<br>**Allowance for Credit Losses** |<br>**Gross<br>Unrealized<br>Gains** |<br>**Gross<br>Unrealized<br>Losses** |<br>**Estimated Fair Value** |
| U.S. Treasury obligations | $6338 | $— | $2 | $(3) | $6337 |
| State housing agency obligations | 12 |  |  |  | 12 |
| MBS: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Government-Sponsored Enterprises (GSEs) – multifamily | 13154 |  | 50 | (11) | 13193 |
| &nbsp;&nbsp;&nbsp;&nbsp;Private-label residential mortgage-backed securities (PLRMBS) | 939 | (33) | 32 | (18) | 920 |
| Total mortgage-backed securities (MBS) | 14093 | (33) | 82 | (29) | 14113 |
| Total | $20443 | $(33) | $84 | $(32) | $20462 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **December 31, 2024**<br>(In millions) |<br>**Amortized**<br>**Cost** |<br>**Allowance for Credit Losses** |<br>**Gross<br>Unrealized<br>Gains** |<br>**Gross<br>Unrealized<br>Losses** |<br>**Estimated Fair Value** |
| U.S. Treasury obligations | $6506 | $— | $4 | $— | $6510 |
| MBS: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;GSEs – multifamily | 12790 |  | 62 | (7) | 12845 |
| &nbsp;&nbsp;&nbsp;&nbsp;PLRMBS | 978 | (30) | 31 | (22) | 957 |
| Total MBS | 13768 | (30) | 93 | (29) | 13802 |
| Total | $20274 | $(30) | $97 | $(29) | $20312 |

---

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco**

**Notes to Financial Statements (continued)**

Amortized cost includes unpaid principal balance, unamortized premiums and discounts, net charge-offs, and valuation adjustments for hedging activities, and excludes accrued interest receivable of $96 million and $92 million at June 30, 2025, and December 31, 2024, respectively. At June 30, 2025, the amortized cost of the Bank's MBS classified as AFS included premiums of $46 million, discounts of $161 million, and previous credit losses related to the prior methodology of evaluating credit losses of $285 million for PLRMBS. At December 31, 2024, the amortized cost of the Bank's MBS classified as AFS included premiums of $51 million, discounts of $175 million, and previous credit losses related to the prior methodology of evaluating credit losses of $293 million for PLRMBS. At June 30, 2025, and December 31, 2024, $587 million and $504 million of AFS securities, respectively, were pledged as collateral that may be repledged.

The following tables summarize the AFS securities with unrealized losses as of June 30, 2025, and December 31, 2024. The unrealized losses are aggregated by major security type and the length of time that individual securities have been in a continuous unrealized loss position.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Less Than 12 Months** | **Less Than 12 Months** | **12 Months or More** | **12 Months or More** | **Total** | **Total** |
| **June 30, 2025**<br>(In millions) | **Estimated<br>Fair Value** | **Gross Unrealized<br>Losses** | **Estimated<br>Fair Value** | **Gross Unrealized<br>Losses** | **Estimated<br>Fair Value** | **Gross Unrealized<br>Losses** |
| U.S. Treasury obligations | $3357 | $3 | $123 | $— | $3480 | $3 |
| MBS – GSEs – multifamily | 2462 | 7 | 547 | 4 | 3009 | 11 |
| PLRMBS | 33 |  | 258 | 18 | 291 | 18 |
| Total | $5852 | $10 | $928 | $22 | $6780 | $32 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Less Than 12 Months** | **Less Than 12 Months** | **12 Months or More** | **12 Months or More** | **Total** | **Total** |
| **December 31, 2024**<br>(In millions) | **Estimated<br>Fair Value** | **Gross <br>Unrealized<br>Losses** | **Estimated<br>Fair Value** | **Gross Unrealized<br>Losses** | **Estimated<br>Fair Value** | **Gross Unrealized<br>Losses** |
| MBS – GSEs – multifamily | $1350 | $3 | $668 | $4 | $2018 | $7 |
| PLRMBS | 62 | 3 | 244 | 19 | 306 | 22 |
| Total | $1412 | $6 | $912 | $23 | $2324 | $29 |

---

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco**

**Notes to Financial Statements (continued)**

*Redemption Terms* – The amortized cost and estimated fair value of U.S. Treasury securities and state housing agency obligations classified as AFS by contractual maturity (based on contractual final principal payment) and of MBS classified as AFS as of June 30, 2025, and December 31, 2024, are shown below. Expected maturities of MBS classified as AFS will differ from contractual maturities because borrowers may have the right to call or prepay the underlying obligations with or without call or prepayment fees.

---

| | | |
|:---|:---|:---|
| **June 30, 2025** | | |
| (In millions) |  |  |
| **Year of Contractual Maturity** | **Amortized<br>Cost** | **Estimated<br>Fair Value** |
| U.S. Treasury obligations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due in 1 year or less | $2389 | $2390 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due after 1 year through 5 years | 3949 | 3947 |
| Total U.S. Treasury obligations | 6338 | 6337 |
| State housing agency obligations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due after 1 year through 5 years | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due after 5 years through 10 years | 11 | 11 |
| Total State housing agency obligations | 12 | 12 |
| MBS | 14093 | 14113 |
| Total | $20443 | $20462 |

---

---

| | | |
|:---|:---|:---|
| **December 31, 2024** | | |
| (In millions) |  |  |
| **Year of Contractual Maturity** | **Amortized<br>Cost** | **Estimated<br>Fair Value** |
| U.S. Treasury obligations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due in 1 year or less | $3181 | $3183 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due after 1 year through 5 years | 3325 | 3327 |
| Total U.S. Treasury obligations | 6506 | 6510 |
| MBS | 13768 | 13802 |
| Total | $20274 | $20312 |

---

**Held-to-Maturity Securities.** The Bank classifies the following securities as HTM because the Bank has the positive intent and ability to hold these securities to maturity:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **June 30, 2025**<br>(In millions) |<br>**Amortized**<br>**Cost** |<br>**Gross**<br>**Unrecognized**<br>**Holding**<br>**Gains** <sup>(1)</sup> |<br>**Gross**<br>**Unrecognized**<br>**Holding**<br>**Losses** <sup>(1)</sup> |<br>**Estimated<br>Fair Value** |
| MBS – Other U.S. obligations – single-family | $22 | $— | $— | $22 |
| MBS – GSEs: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MBS – GSEs – single-family | 448 | 2 | (10) | 440 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MBS – GSEs – multifamily | 775 |  | (2) | 773 |
| Subtotal MBS – GSEs | 1223 | 2 | (12) | 1213 |
| PLRMBS | 90 |  | (5) | 85 |
| Total | $1335 | $2 | $(17) | $1320 |

---

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco**

**Notes to Financial Statements (continued)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **December 31, 2024**<br>(In millions) |<br>**Amortized**<br>**Cost** |<br>**Gross**<br>**Unrecognized**<br>**Holding**<br>**Gains** <sup>(1)</sup> |<br>**Gross**<br>**Unrecognized**<br>**Holding**<br>**Losses** <sup>(1)</sup> |<br>**Estimated<br>Fair Value** |
| MBS – Other U.S. obligations – single-family | $29 | $— | $(1) | $28 |
| MBS – GSEs: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MBS – GSEs – single-family | 495 | 2 | (13) | 484 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MBS – GSEs – multifamily | 864 |  | (2) | 862 |
| Subtotal MBS – GSEs | 1359 | 2 | (15) | 1346 |
| PLRMBS | 101 |  | (6) | 95 |
| Total | $1489 | $2 | $(22) | $1469 |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;Gross unrecognized holding gains/(losses) represent the difference between estimated fair value and net carrying value.

Amortized cost includes unpaid principal balance, unamortized premiums and discounts, and net charge-offs, and excludes accrued interest receivable of $4 million and $5 million at June 30, 2025, and December 31, 2024, respectively. At June 30, 2025, and December 31, 2024, the amortized cost of the Bank's MBS classified as HTM included premiums of $2 million and discounts of $2 million, respectively.

**Allowance for Credit Losses on AFS and HTM Securities.** The following table presents a rollforward of the allowance for credit losses on PLRMBS classified as AFS for the three and six months ended June 30, 2025 and 2024. The Bank recorded no allowance for credit losses associated with HTM securities during the three and six months ended June 30, 2025 and 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|<br>(In millions) | **June 30, 2025** | **June 30, 2024** | **June 30, 2025** | **June 30, 2024** |
| Balance, beginning of the period | $30 | $26 | $30 | $31 |
| (Charge-offs)/recoveries |  | (1) | (1) | (2) |
| Provision for/(reversal of) credit losses | 3 | 3 | 4 | (1) |
| Balance, end of the period | $33 | $28 | $33 | $28 |

---

*Private-Label Residential Mortgage-Backed Securities* – There have been no significant changes in the composition, credit quality, or valuation methodology for the Bank's PLRMBS portfolio since December 31, 2024. There were no transfers of PLRMBS from the Bank's HTM portfolio to its AFS portfolio during the three and six months ended June 30, 2025 or 2024.

The total net accretion recognized in interest income associated with PLRMBS with previous credit losses related to the prior methodology of evaluating credit losses totaled $4 million and $7 million for the three and six months ended June 30, 2025, respectively, and $5 million and $3 million for the three and six months ended June 30, 2024, respectively.

*AFS and HTM Securities (Excluding PLRMBS)* – There have been no significant changes in the credit quality, ratings distribution, or unrealized loss position of the Bank's AFS and HTM securities (excluding PLRMBS investments) since December 31, 2024. As a result, no allowance for credit losses was recorded on these AFS or HTM securities at June 30, 2025, and December 31, 2024.

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco**

**Notes to Financial Statements (continued)**

**Note 4 — Advances** 

The Bank offers a wide range of fixed and adjustable rate advance products with different maturities, interest rates, payment characteristics, and option features. Fixed rate advances generally have maturities ranging from one day to 30 years. Adjustable rate advances generally have maturities ranging from less than one year to 15 years, with the interest rates resetting periodically at a fixed spread to a specified index.

**Redemption Terms.** The following table presents advances outstanding by redemption term and weighted-average interest rate at June 30, 2025, and December 31, 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| (Dollars in millions) | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| **Redemption Term** | **Amount**<br>**Outstanding**<sup>(1)</sup> | **Weighted<br>Average<br>Interest Rate** | **Amount**<br>**Outstanding**<sup>(1)</sup> | **Weighted<br>Average<br>Interest Rate** |
| Within 1 year | $18737 | 4.33% | $23712 | 4.30% |
| After 1 year through 2 years | 10827 | 3.99 | 11067 | 3.81 |
| After 2 years through 3 years | 4580 | 3.92 | 4526 | 3.97 |
| After 3 years through 4 years | 1818 | 4.29 | 3264 | 4.13 |
| After 4 years through 5 years | 1476 | 3.60 | 865 | 3.76 |
| After 5 years | 2447 | 3.78 | 2384 | 3.68 |
| Total par value | 39885 | 4.13% | 45818 | 4.09% |
| Valuation adjustments for hedging activities | (42) |  | (198) |  |
| Valuation adjustments under fair value option | 66 |  | 17 |  |
| Total | $39909 |  | $45637 |  |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;Carrying amounts exclude accrued interest receivable of $70 million and $63 million at June 30, 2025, and December 31, 2024, respectively.

Advances outstanding with redemption terms within three months totaled $11.0 billion and $15.1 billion at June 30, 2025, and December 31, 2024, respectively. The Bank had advances with full prepayment symmetry outstanding totaling $22.7 billion at June 30, 2025, and $29.4 billion at December 31, 2024. The Bank had advances with partial prepayment symmetry outstanding totaling $87 million at June 30, 2025, and $142 million at December 31, 2024. Some advances may be repaid on specified call dates without prepayment fees (callable advances). The Bank had callable advances outstanding totaling $3.5 billion at June 30, 2025, and $2.7 billion at December 31, 2024. The Bank had putable advances totaling $5.6 billion at June 30, 2025, and $4.6 billion at December 31, 2024.

The following table summarizes advances at June 30, 2025, and December 31, 2024, by the earlier of the year of redemption term or next call date for callable advances and by the earlier of the year of redemption term or next put date for putable advances.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Earlier of Redemption <br>Term or Next Call Date** | **Earlier of Redemption <br>Term or Next Call Date** | **Earlier of Redemption <br>Term or Next Put Date** | **Earlier of Redemption <br>Term or Next Put Date** |
|<br>(In millions) | **June 30, 2025** | **December 31, 2024** | **June 30, 2025** | **December 31, 2024** |
| Within 1 year | $21512 | $26023 | $23086 | $27676 |
| After 1 year through 2 years | 8327 | 9066 | 10529 | 10646 |
| After 2 years through 3 years | 4580 | 4526 | 3245 | 3487 |
| After 3 years through 4 years | 1818 | 3264 | 1303 | 2886 |
| After 4 years through 5 years | 1476 | 855 | 1175 | 398 |
| After 5 years | 2172 | 2084 | 547 | 725 |
| Total par value | $39885 | $45818 | $39885 | $45818 |

---

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco**

**Notes to Financial Statements (continued)**

**Concentration Risk.** The following tables present the concentration in advances by borrowers and their affiliates that are 10% or more of total advances outstanding at June 30, 2025 and 2024, or that are 10% or more of total advance interest income for the three and six months ended June 30, 2025 and 2024.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **Three Months Ended<br>June 30, 2025** | **Three Months Ended<br>June 30, 2025** | **Six Months Ended<br>June 30, 2025** | **Six Months Ended<br>June 30, 2025** |
| <br>(Dollars in millions)<br>**Name of Borrower** | **Advances<br>Outstanding** | **Percentage of<br>Total<br>Advances<br>Outstanding** | **Interest<br>Income from<br>Advances**<sup>(1)</sup> | **Percentage of<br>Total Interest<br>Income from<br>Advances** | **Interest<br>Income from<br>Advances**<sup>(1)</sup> | **Percentage of<br>Total Interest<br>Income from<br>Advances** |
| Western Alliance Bank | $5600 | 14% | $56 | 11% | $97 | 10% |
| JPMorgan Chase, National Association<sup>(2)</sup> | 2573 | 6 | 32 | 6 | 102 | 11 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2024** | **June 30, 2024** | **Three Months Ended<br>June 30, 2024** | **Three Months Ended<br>June 30, 2024** | **Six Months Ended<br>June 30, 2024** | **Six Months Ended<br>June 30, 2024** |
| <br>(Dollars in millions)<br>**Name of Borrower** | **Advances<br>Outstanding** | **Percentage of<br>Total<br>Advances<br>Outstanding** | **Interest<br>Income from<br>Advances**<sup>(1)</sup> | **Percentage of<br>Total Interest<br>Income from<br>Advances** | **Interest<br>Income from<br>Advances**<sup>(1)</sup> | **Percentage of<br>Total Interest<br>Income from<br>Advances** |
| JPMorgan Chase, National Association<sup>(2)</sup> | $17717 | 32% | $203 | 35% | $441 | 37% |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;Interest income amounts exclude the interest effect of interest rate exchange agreements with derivative counterparties.

(2)&nbsp;&nbsp;&nbsp;&nbsp;A nonmember. On May 1, 2023, the California Department of Financial Protection and Innovation closed First Republic Bank and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. On the same date, the FDIC transferred all of the deposits and substantially all of the assets of First Republic Bank, including $28.1 billion in advances outstanding from the Bank, to JPMorgan Chase, National Association, a nonmember. These advances outstanding are fully collateralized and are not expected to result in any credit loss to the Bank.

**Credit Risk Exposure and Security Terms.** The Bank manages its credit exposure related to advances through an integrated approach that provides for a credit limit to be established for each borrower, includes an ongoing review of each borrower's financial condition, and is coupled with conservative collateral and lending policies to limit the risk of loss. For more information related to the Bank's credit risk management practices, borrower eligibility, and collateral requirements for advances, see "Item 8. Financial Statements and Supplementary Data – Note 5 – Advances" in the Bank's 2024 Form 10-K.

At June 30, 2025, and December 31, 2024, the Bank had a perfected security interest in collateral pledged by each borrowing member, or by the member's affiliate on behalf of the member, and by each nonmember borrower, with an estimated value in excess of the outstanding credit products for that borrower. At June 30, 2025, and December 31, 2024, none of the Bank's credit products were past due or on nonaccrual status. There were no modifications to credit products related to borrowers experiencing financial difficulty during the three and six months ended June 30, 2025 and 2024.

Based on the collateral pledged as security for advances, the Bank's credit analyses of borrowers' financial condition, repayment history on advances, and the Bank's credit extension and collateral policies as of June 30, 2025, and December 31, 2024, the Bank expects to collect all amounts due according to the contractual terms. Therefore, no allowance for credit losses on advances was deemed necessary by the Bank as of June 30, 2025, and December 31, 2024.

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco**

**Notes to Financial Statements (continued)**

**Interest Rate Payment Terms.** Interest rate payment terms for advances at June 30, 2025, and December 31, 2024, are detailed below:

---

| | | |
|:---|:---|:---|
| (In millions) | **June 30, 2025** | **December 31, 2024** |
| Par value of advances: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed rate: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due within 1 year | $10167 | $15218 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due after 1 year | 17948 | 20101 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fixed rate | 28115 | 35319 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustable rate: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due within 1 year | 8570 | 8494 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due after 1 year | 3200 | 2005 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total adjustable rate | 11770 | 10499 |
| Total par value | $39885 | $45818 |

---

**Note 5 — Mortgage Loans Held for Portfolio**

Mortgage loans held for portfolio consist of single-family mortgage loans purchased from participating financial institutions under the Mortgage Partnership Finance® (MPF®) Program ("Mortgage Partnership Finance" and "MPF" are registered trademarks of the FHLBank of Chicago). The following table presents information as of June 30, 2025, and December 31, 2024, on mortgage loans held for portfolio, all of which are secured by one- to four-unit residential properties and single-unit homes.

---

| | | |
|:---|:---|:---|
| (In millions) | **June 30, 2025** | **December 31, 2024** |
| Fixed rate medium-term mortgage loans<sup>(1)</sup> | $10 | $10 |
| Fixed rate long-term mortgage loans<sup>(1)</sup> | 623 | 648 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | 633 | 658 |
| Premiums | 35 | 37 |
| Discounts | (1) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans held for portfolio<sup>(2)</sup> | 667 | 694 |
| Less: Allowance for credit losses | (1) | (1) |
| Total mortgage loans held for portfolio, net | $666 | $693 |

---

(1)Medium-term loans have original contractual terms of 15 years or less, and long-term loans have contractual terms of more than 15 years.

(2)Excludes accrued interest receivable of $4 million and $5 million at June 30, 2025, and December 31, 2024, respectively.

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco**

**Notes to Financial Statements (continued)**

**Credit Quality Indicators.** The following table presents the payment status for mortgage loans and other delinquency statistics for the Bank's mortgage loans at June 30, 2025, and December 31, 2024.

---

| | | |
|:---|:---|:---|
| (Dollars in millions) |  |  |
| **Payment Status, at Amortized Cost**<sup>(1)</sup> | **June 30, 2025** | **December 31, 2024** |
| 30 – 59 days delinquent | $6 | $8 |
| 60 – 89 days delinquent | 1 | 2 |
| 90 days or more delinquent | 18 | 17 |
| Total past due | 25 | 27 |
| Total current loans | 642 | 667 |
| Total mortgage loans held for portfolio | $667 | $694 |
| In process of foreclosure, included above<sup>(2)</sup> | $2 | $1 |
| Nonaccrual loans<sup>(3)</sup> | $18 | $17 |
| Serious delinquencies as a percentage of total mortgage loans outstanding<sup>(4)</sup> | 2.67% | 2.48% |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;The amortized cost in a loan is the unpaid principal balance of the loan, adjusted for net deferred loan fees or costs, amortized premiums or discounts, and direct write-downs.

(2)&nbsp;&nbsp;&nbsp;&nbsp;Includes loans for which the servicer has reported a decision to foreclose or to pursue a similar alternative, such as deed-in-lieu. Loans in process of foreclosure are included in past due or current loans depending on their delinquency status.

(3)&nbsp;&nbsp;&nbsp;&nbsp;At June 30, 2025, and December 31, 2024, $6 million and $5 million, respectively, of mortgage loans on nonaccrual status did not have an associated allowance for credit losses because these loans were either previously charged off to the expected recoverable value or the fair value of the underlying collateral, including any credit enhancements, is greater than the amortized cost of the loans.

(4)&nbsp;&nbsp;&nbsp;&nbsp;Represents loans that are 90 days or more past due or in the process of foreclosure as a percentage of the recorded investment of total mortgage loans outstanding.

**Allowance for Credit Losses on Mortgage Loans Held for Portfolio.** Mortgage loans held for portfolio are evaluated on a loan-level basis for expected credit losses. The Bank determines its allowance for credit losses on mortgage loans held for portfolio through analyses that include consideration of various loan portfolio and collateral related characteristics, such as past performance, current conditions, and reasonable and supportable forecasts of expected economic conditions.

At both June 30, 2025 and December 31, 2024, the allowance for credit losses on the mortgage loan portfolio was $1 million. The amount of charge-offs and recoveries related to the allowance for credit losses on the mortgage loan portfolio were de minimis for the three and six months ended June 30, 2025 and 2024.

**Note 6 — Deposits** 

The Bank maintains demand deposit accounts that are directly related to the extension of credit to members and offers short-term deposit programs to members and qualifying nonmembers. In addition, a member that services mortgage loans held for portfolio may deposit in the Bank funds collected in connection with the mortgage loans, pending disbursement of these funds. The Bank classifies these types of deposits as non-interest-bearing deposits. Deposits classified as demand, overnight, and other pay interest based on a daily interest rate. Term deposits pay interest based on a fixed rate determined at the issuance of the deposit.

Deposits outstanding as of June 30, 2025, and December 31, 2024, were as follows:

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
|<br>(In millions) | **Amount <br>Outstanding** | **Amount <br>Outstanding** |
| Demand and overnight interest-bearing deposits | $1771 | $1055 |
| Non-interest-bearing deposits | 4 | 6 |
| Total | $1775 | $1061 |

---

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco**

**Notes to Financial Statements (continued)**

**Note 7 — Consolidated Obligations** 

Consolidated obligations, consisting of bonds and discount notes, are jointly issued by the Federal Home Loan Banks (FHLBanks) through the Office of Finance, which serves as the FHLBanks' agent. As provided by the Federal Home Loan Bank Act of 1932, as amended (FHLBank Act) or by regulations governing the operations of the FHLBanks, all FHLBanks have joint and several liability for all FHLBank consolidated obligations. For more information on the issuance and allocation of consolidated obligations, see "Item 8. Financial Statements and Supplementary Data – Note 1 – Summary of Significant Accounting Policies" in the Bank's 2024 Form 10-K.

**Redemption Terms.** The following is a summary of the Bank's participation in consolidated obligation bonds at June 30, 2025, and December 31, 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| (Dollars in millions) | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| **Contractual Maturity** | **Amount<br>Outstanding** | **Weighted<br>Average<br>Interest Rate** | **Amount<br>Outstanding** | **Weighted<br>Average<br>Interest Rate** |
| Within 1 year | $39957 | 4.07% | $39657 | 4.40% |
| After 1 year through 2 years | 7178 | 2.99 | 12005 | 2.96 |
| After 2 years through 3 years | 1846 | 3.40 | 1920 | 2.62 |
| After 3 years through 4 years | 1481 | 3.97 | 1487 | 3.50 |
| After 4 years through 5 years | 3024 | 4.51 | 2706 | 4.35 |
| After 5 years | 777 | 2.77 | 777 | 2.76 |
| Total par value | 54263 | 3.91% | 58552 | 4.00% |
| Unamortized discounts | (1) |  | (1) |  |
| Valuation adjustments for hedging activities | (194) |  | (363) |  |
| Fair value option valuation adjustments | (7) |  | (14) |  |
| Total | $54061 |  | $58174 |  |

---

The Bank's participation in consolidated obligation bonds outstanding includes callable bonds. The Bank's participation in consolidated obligation bonds by call features at June 30, 2025, and December 31, 2024, was as follows:

---

| | | |
|:---|:---|:---|
| (In millions) | **June 30, 2025** | **December 31, 2024** |
| Par value of consolidated obligation bonds: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-callable | $29877 | $40207 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Callable | 24386 | 18345 |
| Total par value | $54263 | $58552 |

---

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco**

**Notes to Financial Statements (continued)**

The following is a summary of the Bank's participation in consolidated obligation bonds outstanding at June 30, 2025, and December 31, 2024, by the earlier of the year of contractual maturity or next call date.

---

| | | |
|:---|:---|:---|
| (In millions) |  |  |
| **Earlier of Contractual<br>Maturity or Next Call Date** | **June 30, 2025** | **December 31, 2024** |
| Within 1 year | $48836 | $49795 |
| After 1 year through 2 years | 4604 | 7608 |
| After 2 years through 3 years | 761 | 1101 |
| After 3 years through 4 years | 26 | 12 |
| After 4 years through 5 years | 9 | 9 |
| After 5 years | 27 | 27 |
| Total par value | $54263 | $58552 |

---

The Bank's participation in consolidated obligation discount notes, all of which are due within one year, was as follows:

---

| | | | |
|:---|:---|:---|:---|
| (Dollars in millions) | **Carrying Value** | **Par Value** | **Weighted-Average Interest Rate**<sup>(1)</sup> |
| June 30, 2025 | $19174 | $19311 | 4.18% |
| December 31, 2024 | 14378 | 14460 | 4.41% |

---

(1)Represents yield to maturity excluding concession fees.

**Interest Rate Payment Terms.** Interest rate payment terms for consolidated obligation bonds at June 30, 2025, and December 31, 2024, are detailed in the following table.

---

| | | |
|:---|:---|:---|
| (In millions) | **June 30, 2025** | **December 31, 2024** |
| Par value of consolidated obligation bonds: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed rate | $27959 | $23410 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustable rate | 25909 | 34692 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Step-up | 395 | 450 |
| Total consolidated obligation bonds, par value | $54263 | $58552 |

---

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco**

**Notes to Financial Statements (continued)**

**Note 8 — Accumulated Other Comprehensive Income/(Loss)** 

The following table summarizes the changes in Accumulated Other Comprehensive Income/(Loss) (AOCI) for the three months ended June 30, 2025 and 2024:

---

| | | | |
|:---|:---|:---|:---|
| (In millions) | **Net Unrealized Gain/(Loss) on AFS Securities** | **Pension and Postretirement Benefits** | **Total <br>AOCI** |
| Balance, March 31, 2024 | $38 | $(11) | $27 |
| Other comprehensive income/(loss): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in fair value | 29 |  | 29 |
| Net current period other comprehensive income/(loss) | 29 |  | 29 |
| Balance, June 30, 2024 | $67 | $(11) | $56 |
| Balance, March 31, 2025 | $87 | $(5) | $82 |
| Other comprehensive income/(loss): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in fair value | (35) |  | (35) |
| Net current period other comprehensive income/(loss) | (35) |  | (35) |
| Balance, June 30, 2025 | $52 | $(5) | $47 |

---

The following table summarizes the changes in AOCI for the six months ended June 30, 2025 and 2024:

---

| | | | |
|:---|:---|:---|:---|
| (In millions) | **Net Unrealized Gain/(Loss) on AFS Securities** | **Pension and Postretirement Benefits** | **Total <br>AOCI** |
| Balance, December 31, 2023 | $(61) | $(11) | $(72) |
| Other comprehensive income/(loss): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in fair value | 128 |  | 128 |
| Net current period other comprehensive income/(loss) | 128 |  | 128 |
| Balance, June 30, 2024 | $67 | $(11) | $56 |
| Balance, December 31, 2024 | $68 | $(5) | $63 |
| Other comprehensive income/(loss): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in fair value | (16) |  | (16) |
| Net current period other comprehensive income/(loss) | (16) |  | (16) |
| Balance, June 30, 2025 | $52 | $(5) | $47 |

---

**Note 9 — Capital** 

**Capital Requirements.** The FHLBank Act and regulations governing the operations of the FHLBanks require that the Bank's minimum capital stock requirement for shareholders must be sufficient to enable the Bank to meet its regulatory requirements for total regulatory capital, leverage capital, and risk-based capital.

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco**

**Notes to Financial Statements (continued)**

As of June 30, 2025, and December 31, 2024, the Bank complied with these capital rules and requirements as shown in the following table.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
|<br>(Dollars in millions) | **Required** | **Actual** | **Required** | **Actual** |
| Risk-based capital | $1213 | $7270 | $1058 | $7272 |
| Total regulatory capital | $3326 | $7270 | $3269 | $7272 |
| Total regulatory capital ratio | 4.00% | 8.74% | 4.00% | 8.90% |
| Leverage capital | $4157 | $10905 | $4087 | $10908 |
| Leverage ratio | 5.00% | 13.12% | 5.00% | 13.35% |

---

**Mandatorily Redeemable Capital Stock.** The Bank had mandatorily redeemable capital stock totaling $131 million outstanding to five institutions at June 30, 2025, and $331 million outstanding to seven institutions at December 31, 2024. These amounts have been classified as a liability on the Bank's Statements of Condition. The changes in mandatorily redeemable capital stock for the three and six months ended June 30, 2025 and 2024 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|<br>(In millions) | **June 30, 2025** | **June 30, 2024** | **June 30, 2025** | **June 30, 2024** |
| Balance at the beginning of the period | $153 | $666 | $331 | $706 |
| Reclassified from/(to) capital during the period |  |  |  | 36 |
| Repurchase/redemption | (22) | (101) | (200) | (177) |
| Balance at the end of the period | $131 | $565 | $131 | $565 |

---

The following table presents mandatorily redeemable capital stock amounts by contractual year of redemption at June 30, 2025, and December 31, 2024.

---

| | | |
|:---|:---|:---|
| (In millions) |  |  |
| **Contractual Year of Redemption** | **June 30, 2025** | **December 31, 2024** |
| Year 2 | $— | $1 |
| Year 3 | 127 | 3 |
| Year 4 | 3 | 309 |
| Year 5 |  | 18 |
| Past contractual redemption date because of remaining activity<sup>(1)</sup> | 1 |  |
| Total | $131 | $331 |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;Represents mandatorily redeemable capital stock that is past the end of the contractual redemption period because there is activity outstanding to which the mandatorily redeemable capital stock relates.

If activity-based stock becomes excess stock as a result of an activity no longer remaining outstanding, the Bank may repurchase those shares, at its sole discretion, subject to the statutory and regulatory restrictions on excess stock redemption.

**Excess Stock Repurchase, Retained Earnings, and Dividend Framework.** There have been no significant changes to the Bank's capital plan, capital stock requirements (including excess stock repurchase provisions), or dividend framework from those disclosed in the Bank's 2024 Form 10-K.

In July 2025, the required level of retained earnings was increased from $1.6 billion to $2.0 billion mainly attributable to higher non-MBS investment balances.

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco**

**Notes to Financial Statements (continued)**

Excess stock totaled $164 million, or 0.20% of total assets as of June 30, 2025. Excess stock totaled $111 million, or 0.14% of total assets as of December 31, 2024.

On July 24, 2025, the Board declared a quarterly cash dividend on the average capital stock outstanding during the second quarter of 2025 at an annualized rate of 8.75%, totaling $63 million. The Bank recorded the dividend on July 24, 2025, and expects to pay the dividend on August 12, 2025.

For more information on the Bank's membership capital stock requirement and activity-based capital stock requirement, mandatorily redeemable capital stock, excess stock repurchase, retained earnings, and dividend framework, see "Item 8. Financial Statements and Supplementary Data – Note 11 – Capital" in the Bank's 2024 Form 10-K.

**Concentration.** No institution held 10% or more of the Bank's outstanding capital stock, including mandatorily redeemable capital stock, as of June 30, 2025, or December 31, 2024.

**Note 10 — Derivatives and Hedging Activities** 

**General*.*** The Bank regularly enters into interest rate exchange agreements. Beginning in the second quarter of 2025, advances with embedded options that are offset with an interest rate exchange agreement will generally be designated as fair value hedges, whereas the fair value option was generally elected previously. For more information on the Bank's derivative strategies and accounting for derivatives and hedging activities, see "Item 8. Financial Statements and Supplementary Data – Note 13 – Derivatives and Hedging Activities" in the Bank's 2024 Form 10-K.

The following table summarizes the notional amount and fair value of derivative instruments, including the effect of netting adjustments and cash collateral as of June 30, 2025, and December 31, 2024. For purposes of this disclosure, the derivative values include the fair value of derivatives and related accrued interest.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|<br>(In millions) | **Notional<br>Amount of<br>Derivatives** | **Derivative<br>Assets** | **Derivative<br>Liabilities** | **Notional<br>Amount of<br>Derivatives** | **Derivative<br>Assets** | **Derivative<br>Liabilities** |
| Derivatives designated as hedging instruments: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps | $76970 | $612 | $256 | $76005 | $713 | $399 |
| Derivatives not designated as hedging instruments: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps | 13071 | 10 | 70 | 13871 | 39 | 59 |
| Total derivatives before netting and collateral adjustments | $90041 | 622 | 326 | $89876 | 752 | 458 |
| Netting adjustments and cash collateral<sup>(1)</sup> |  | (590) | (293) |  | (722) | (450) |
| Total derivative assets and total derivative liabilities |  | $32 | $33 |  | $30 | $8 |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, and also cash collateral, including accrued interest, held or placed with the same clearing agents or counterparty. Cash collateral posted, including accrued interest, was $104 million and $210 million at June 30, 2025, and December 31, 2024, respectively. Cash collateral received, including accrued interest, was $401 million and $482 million at June 30, 2025, and December 31, 2024, respectively.

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco**

**Notes to Financial Statements (continued)**

The following tables present, by type of hedged item, the gains and losses on fair value hedging relationships and the impact of derivatives in those relationships on the Bank's Statements of Income for the three and six months ended June 30, 2025 and 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| | **Interest Income/(Expense)** | **Interest Income/(Expense)** | **Interest Income/(Expense)** | **Interest Income/(Expense)** |
|<br>(In millions) | **Advances** | **AFS Securities** | **Consolidated Obligation Bonds** | **Consolidated Obligation Discount Notes** |
| Total interest income/(expense) presented in the Statements of Income | $533 | $270 | $(606) | $(200) |
| Gain/(loss) on fair value hedging relationships |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives<sup>(1)</sup> | $(20) | $(114) | $11 | $(2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hedged items | 51 | 172 | (70) |  |
| Net gain/(loss) on derivatives and hedging activities recorded in net interest income | $31 | $58 | $(59) | $(2) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
| | **Interest Income/(Expense)** | **Interest Income/(Expense)** | **Interest Income/(Expense)** | **Interest Income/(Expense)** |
|<br>(In millions) | **Advances** | **AFS Securities** | **Consolidated Obligation Bonds** | **Consolidated Obligation Discount Notes** |
| Total interest income/(expense) presented in the Statements of Income | $731 | $292 | $(786) | $(218) |
| Gain/(loss) on fair value hedging relationships |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives<sup>(1)</sup> | $93 | $134 | $(59) | $(2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hedged items | 55 | (32) | (75) |  |
| Net gain/(loss) on derivatives and hedging activities recorded in net interest income | $148 | $102 | $(134) | $(2) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| | **Interest Income/(Expense)** | **Interest Income/(Expense)** | **Interest Income/(Expense)** | **Interest Income/(Expense)** |
|<br>(In millions) | **Advances** | **AFS Securities** | **Consolidated Obligation Bonds** | **Consolidated Obligation Discount Notes** |
| Total interest income/(expense) presented in the Statements of Income | $1006 | $538 | $(1200) | $(326) |
| Gain/(loss) on fair value hedging relationships |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives<sup>(1)</sup> | $(84) | $(332) | $55 | $(4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hedged items | 153 | 447 | (170) | 4 |
| Net gain/(loss) on derivatives and hedging activities recorded in net interest income | $69 | $115 | $(115) | $— |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| | **Interest Income/(Expense)** | **Interest Income/(Expense)** | **Interest Income/(Expense)** | **Interest Income/(Expense)** |
|<br>(In millions) | **Advances** | **AFS Securities** | **Consolidated Obligation Bonds** | **Consolidated Obligation Discount Notes** |
| Total interest income/(expense) presented in the Statements of Income | $1490 | $575 | $(1636) | $(411) |
| Gain/(loss) on fair value hedging relationships |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives<sup>(1)</sup> | $404 | $532 | $(220) | $(2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hedged items | (98) | (326) | (53) |  |
| Net gain/(loss) on derivatives and hedging activities recorded in net interest income | $306 | $206 | $(273) | $(2) |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;Includes net interest settlements.

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco**

**Notes to Financial Statements (continued)**

The following tables present the cumulative basis adjustments on hedged items designated as fair value hedges and the related amortized cost of the hedged items as of June 30, 2025, and December 31, 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|<br>(In millions) | **Advances** | **AFS Securities** | **Consolidated Obligation Bonds** | **Consolidated Obligation Discount Notes** |
| Amortized cost of hedged asset/(liability)<sup>(1)</sup> | $16939 | $19492 | $(26581) | $(14375) |
| Fair value hedging basis adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Active hedging relationships included in amortized cost | $(61) | $(684) | $194 | $— |
| &nbsp;&nbsp;&nbsp;Discontinued hedging relationships included in amortized cost | 19 | 455 |  |  |
| Total amount of fair value hedging basis adjustments | $(42) | $(229) | $194 | $— |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|<br>(In millions) | **Advances** | **AFS Securities** | **Consolidated Obligation Bonds** | **Consolidated Obligation Discount Notes** |
| Amortized cost of hedged asset/(liability)<sup>(1)</sup> | $24880 | $19296 | $(22142) | $(9702) |
| Fair value hedging basis adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Active hedging relationships included in amortized cost | $(230) | $(1191) | $364 | $(4) |
| &nbsp;&nbsp;&nbsp;Discontinued hedging relationships included in amortized cost | 32 | 512 |  |  |
| Total amount of fair value hedging basis adjustments | $(198) | $(679) | $364 | $(4) |

---

(1)Includes only the portion of amortized cost representing the hedged items in fair value hedging relationships.

The following table presents the components of net gain/(loss) on derivatives as presented in the Statements of Income for the three and six months ended June 30, 2025 and 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| (In millions) | **June 30, 2025** | **June 30, 2024** | **June 30, 2025** | **June 30, 2024** |
| **Derivatives not designated as hedging instruments** | **Gain/(Loss)** | **Gain/(Loss)** | **Gain/(Loss)** | **Gain/(Loss)** |
| Economic hedges: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps | $(13) | $(4) | $(37) | $7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest settlements | 14 | 8 | 24 | 13 |
| Total net gain/(loss) related to derivatives not designated as hedging instruments | 1 | 4 | (13) | 20 |
| Price alignment amount<sup>(1)</sup> |  | (1) | (1) | (2) |
| Net gain/(loss) on derivatives | $1 | $3 | $(14) | $18 |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;This amount relates to derivatives for which variation margin on cleared derivatives is characterized as a daily settled contract.

**Credit Risk.** The Bank's use of clearing agents and central counterparties helps mitigate credit risk exposure by employing standard valuation processes over initial and variation margin processes.

The Bank's agreements for uncleared derivative transactions contain provisions that link the Bank's credit rating to various rights and obligations. The aggregate fair value of all uncleared derivative instruments with credit risk-related contingent features that were in a net derivative liability position (before cash collateral and related accrued interest) at June 30, 2025, was $105 million, for which the Bank posted cash collateral of $103 million in the ordinary course of business.

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco**

**Notes to Financial Statements (continued)**

The Bank may present derivative instruments, related cash collateral received or pledged, and associated accrued interest by clearing agent or by counterparty on a net basis when the netting requirements have been met. The following table presents separately the fair value of derivative assets and derivative liabilities that have met the netting requirements, including the related collateral received from or pledged to counterparties as of June 30, 2025, and December 31, 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
|<br>(In millions) | **Derivative Assets** | **Derivative Liabilities** | **Derivative Assets** | **Derivative Liabilities** |
| **Derivative instruments meeting netting requirements** |  |  |  |  |
| Gross recognized amount |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Uncleared | $618 | $301 | $730 | $452 |
| &nbsp;&nbsp;&nbsp;Cleared | 4 | 25 | 22 | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total gross recognized amount | 622 | 326 | 752 | 458 |
| Gross amount of netting adjustments and cash collateral |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Uncleared | (586) | (289) | (729) | (444) |
| &nbsp;&nbsp;&nbsp;Cleared | (4) | (4) | 7 | (6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total gross amounts of netting adjustments and cash collateral | (590) | (293) | (722) | (450) |
| Total derivative assets and total derivative liabilities | $32 | $33 | $30 | $8 |
| **Non-cash collateral received or pledged that can be sold or repledged** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cleared | $— | $21 | $— | $— |
| Total net amount of non-cash collateral received or pledged | $— | $21 | $— | $— |
| **Net amount**<sup>(1)(2)</sup> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Uncleared | $32 | $12 | $1 | $8 |
| &nbsp;&nbsp;&nbsp;Cleared |  |  | 29 |  |
| Total net amount | $32 | $12 | $30 | $8 |

---

(1) &nbsp;&nbsp;&nbsp;&nbsp;The amount of non-cash collateral for uncleared derivatives included in the determination of the net amount is limited to the amount needed to secure the Bank's or counterparties' uncleared exposure. At June 30, 2025, the Bank received excess non-cash collateral with a fair value of $3 million.

(2) &nbsp;&nbsp;&nbsp;&nbsp;Any over-collateralization at the Bank's individual clearing agent and/or counterparty level is not included in the determination of the net amount. At June 30, 2025, and December 31, 2024, the Bank had additional net credit exposure of $566 million and $504 million, respectively, due to instances where non-cash collateral to a counterparty exceeded the Bank's net derivative position.

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco**

**Notes to Financial Statements (continued)**

**Note 11 — Fair Value** 

The following fair value amounts have been determined by the Bank using available market information and the Bank's best judgment of appropriate valuation methods. A description of the application of the fair-value hierarchy, valuation techniques, and significant inputs is disclosed in "Item 8. Financial Statement and Supplementary Data – Note 14 – Fair Value" in the Bank's 2024 Form 10-K. There have been no material changes in the fair-value hierarchy classification of financial assets and liabilities, valuation techniques, or significant inputs during the three and six months ended June 30, 2025.

The following tables present the net carrying value or carrying value, as applicable, the estimated fair value, and the fair value hierarchy level of the Bank's financial instruments at June 30, 2025, and December 31, 2024.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|<br>(In millions) | **Carrying**<br>**Value**<sup>(1)</sup> | **Estimated Fair Value** | **Level 1** | **Level 2** | **Level 3** | **Netting Adjustments and Cash Collateral**<sup>(2)</sup> |
| **Assets** |  |  |  |  |  |  |
| Cash and due from banks | $8 | $8 | $8 | $— | $— | $— |
| Interest-bearing deposits | 3583 | 3583 | 3583 |  |  |  |
| Securities purchased under agreements to resell | 11750 | 11750 |  | 11750 |  |  |
| Federal funds sold | 4985 | 4985 |  | 4985 |  |  |
| AFS securities | 20462 | 20462 |  | 19542 | 920 |  |
| HTM securities | 1335 | 1320 |  | 1235 | 85 |  |
| Advances | 39909 | 39911 |  | 39911 |  |  |
| Mortgage loans held for portfolio | 666 | 559 |  | 559 |  |  |
| Accrued interest receivable | 190 | 190 |  | 190 |  |  |
| Derivative assets, net<sup>(2)</sup> | 32 | 32 |  | 622 |  | (590) |
| Other assets<sup>(3)</sup> | 18 | 18 | 18 |  |  |  |
| **Liabilities** |  |  |  |  |  |  |
| Deposits | 1775 | 1775 |  | 1775 |  |  |
| Consolidated obligations: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds | 54061 | 53911 |  | 53911 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discount notes | 19174 | 19170 |  | 19170 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total consolidated obligations | 73235 | 73081 |  | 73081 |  |  |
| Mandatorily redeemable capital stock | 131 | 131 | 131 |  |  |  |
| Accrued interest payable | 375 | 375 |  | 375 |  |  |
| Derivative liabilities, net<sup>(2)</sup> | 33 | 33 |  | 326 |  | (293) |

---

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco**

**Notes to Financial Statements (continued)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Carrying**<br>**Value**<sup>(1)</sup> | **Estimated Fair Value** | **Level 1** | **Level 2** | **Level 3** | **Netting Adjustments and Cash Collateral**<sup>(2)</sup> |
| **Assets** | | | | | | |
| Cash and due from banks | $2 | $2 | $2 | $— | $— | $— |
| Interest-bearing deposits | 3765 | 3765 | 3765 |  |  |  |
| Securities purchased under agreements to resell | 7750 | 7750 |  | 7750 |  |  |
| Federal funds sold | 1645 | 1645 |  | 1645 |  |  |
| AFS securities | 20312 | 20312 |  | 19355 | 957 |  |
| HTM securities | 1489 | 1469 |  | 1374 | 95 |  |
| Advances | 45637 | 45596 |  | 45596 |  |  |
| Mortgage loans held for portfolio | 693 | 576 |  | 576 |  |  |
| Accrued interest receivable | 181 | 181 |  | 181 |  |  |
| Derivative assets, net<sup>(2)</sup> | 30 | 30 |  | 752 |  | (722) |
| Other assets<sup>(3)</sup> | 17 | 17 | 17 |  |  |  |
| **Liabilities** |  |  |  |  |  |  |
| Deposits | 1061 | 1061 |  | 1061 |  |  |
| Consolidated obligations: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds | 58174 | 57985 |  | 57985 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discount notes | 14378 | 14376 |  | 14376 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total consolidated obligations | 72552 | 72361 |  | 72361 |  |  |
| Mandatorily redeemable capital stock | 331 | 331 | 331 |  |  |  |
| Accrued interest payable | 412 | 412 |  | 412 |  |  |
| Derivative liabilities, net<sup>(2)</sup> | 8 | 8 |  | 458 |  | (450) |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;For certain financial instruments, the amounts represent net carrying value, which includes an allowance for credit losses.

(2)&nbsp;&nbsp;&nbsp;&nbsp;Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, and also cash collateral and related accrued interest held or placed with the same clearing agents or counterparty.

(3)&nbsp;&nbsp;&nbsp;&nbsp;Includes publicly traded mutual funds held in a grantor trust.

For the periods presented, the Bank did not have any reclassifications for transfers in or out of level 3 of the fair value hierarchy. For more information related to the valuation methodologies and primary inputs used to develop the measurement of fair value for assets and liabilities that are measured at fair value on a recurring or nonrecurring basis in the Statements of Condition, see "Item 8. Financial Statements and Supplementary Data – Note 14 – Fair Value" in the Bank's 2024 Form 10-K. There have been no significant changes in these valuation methodologies and primary inputs during the three and six months ended June 30, 2025.

**Subjectivity of Estimates Related to Fair Values of Financial Instruments.** Estimates of the fair value of financial assets and liabilities using the methodologies described above are subjective and require judgments regarding significant matters, such as the amount and timing of future cash flows, prepayment speed assumptions, expected interest rate volatility, methods to determine possible distributions of future interest rates used to value options, and the selection of discount rates that appropriately reflect market and credit risks. Changes in these judgments may have a material effect on the fair value estimates.

**Fair Value Measurements.** The following tables present the fair value of assets and liabilities, which are recorded on a recurring or nonrecurring basis at June 30, 2025, and December 31, 2024, by level within the fair value hierarchy.

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco**

**Notes to Financial Statements (continued)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Fair Value Measurement Using:** | **Fair Value Measurement Using:** | **Fair Value Measurement Using:** | **Netting Adjustments**<br> **and Cash Collateral**<sup>(1)</sup> | |
| **June 30, 2025**<br>(In millions) | **Level 1** | **Level 2** | **Level 3** | **Netting Adjustments**<br> **and Cash Collateral**<sup>(1)</sup> |<br>**Total** |
| Recurring fair value measurements – Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AFS securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury obligations | $— | $6337 | $— | $— | $6337 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State housing agency obligations |  | 12 |  |  | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MBS: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GSEs – multifamily |  | 13193 |  |  | 13193 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PLRMBS |  |  | 920 |  | 920 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal AFS MBS |  | 13193 | 920 |  | 14113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total AFS securities |  | 19542 | 920 |  | 20462 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances<sup>(2)</sup> |  | 6061 |  |  | 6061 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative assets, net: interest rate-related |  | 622 |  | (590) | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | 18 |  |  |  | 18 |
| Total recurring fair value measurements – Assets | $18 | $26225 | $920 | $(590) | $26573 |
| Recurring fair value measurements – Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated obligation bonds<sup>(3)</sup> | $— | $388 | $— | $— | $388 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative liabilities, net: interest rate-related |  | 326 |  | (293) | 33 |
| Total recurring fair value measurements – Liabilities | $— | $714 | $— | $(293) | $421 |
| Nonrecurring fair value measurements – Assets:<sup>(4)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impaired mortgage loans held for portfolio | $— | $— | $1 | $— | $1 |
| Total nonrecurring fair value measurements – Assets | $— | $— | $1 | $— | $1 |

---

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco**

**Notes to Financial Statements (continued)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Fair Value Measurement Using:** | **Fair Value Measurement Using:** | **Fair Value Measurement Using:** | **Netting Adjustments**<br> **and Cash Collateral**<sup>(1)</sup> | |
| **December 31, 2024**<br>(In millions) | **Level 1** | **Level 2** | **Level 3** | **Netting Adjustments**<br> **and Cash Collateral**<sup>(1)</sup> |<br>**Total** |
| Recurring fair value measurements – Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AFS securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury obligations | $— | $6510 | $— | $— | $6510 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MBS: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GSEs – multifamily |  | 12845 |  |  | 12845 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PLRMBS |  |  | 957 |  | 957 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal AFS MBS |  | 12845 | 957 |  | 13802 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total AFS securities |  | 19355 | 957 |  | 20312 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances<sup>(2)</sup> |  | 5286 |  |  | 5286 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative assets, net: interest rate-related |  | 752 |  | (722) | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | 17 |  |  |  | 17 |
| Total recurring fair value measurements – Assets | $17 | $25393 | $957 | $(722) | $25645 |
| Recurring fair value measurements – Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated obligation bonds<sup>(3)</sup> | $— | $436 | $— | $— | $436 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative liabilities, net: interest rate-related |  | 458 |  | (450) | 8 |
| Total recurring fair value measurements – Liabilities | $— | $894 | $— | $(450) | $444 |
| Nonrecurring fair value measurements – Assets:<sup>(4)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impaired mortgage loans held for portfolio | $— | $— | $1 | $— | $1 |
| Total nonrecurring fair value measurements – Assets | $— | $— | $1 | $— | $1 |

---

(1)Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, and also cash collateral and related accrued interest held or placed by the Bank, with the same clearing agents or counterparty.

(2)Represents advances recorded under the fair value option at June 30, 2025, and December 31, 2024.

(3)Represents consolidated obligation bonds recorded under the fair value option at June 30, 2025, and December 31, 2024.

(4)The fair value information presented is as of the date the fair value adjustment was recorded during the six months ended June 30, 2025, and the year ended December 31, 2024.

The following table presents a reconciliation of the Bank's AFS PLRMBS that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2025 and 2024.

---

| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
|<br>(In millions) | **June 30, 2025** | **June 30, 2024** |
| Balance, beginning of the period | $942 | $1028 |
| Total gain/(loss) realized and unrealized included in: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | 4 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Provision for)/reversal of credit losses | (3) | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain/(loss) included in AOCI | 3 | (10) |
| Settlements | (26) | (22) |
| Balance, end of the period | $920 | $998 |
| Total amount of unrealized gain/(loss) for the period included in AOCI relating to assets held at the end of the period | $3 | $(10) |
| Total amount of gain/(loss) for the period included in earnings relating to assets held at the end of the period | $1 | $2 |

---

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco**

**Notes to Financial Statements (continued)**

---

| | | |
|:---|:---|:---|
| | **Six Months Ended** | **Six Months Ended** |
|<br>(In millions) | **June 30, 2025** | **June 30, 2024** |
| Balance, beginning of the period | $957 | $1059 |
| Total gain/(loss) realized and unrealized included in: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | 7 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Provision for)/reversal of credit losses | (4) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain/(loss) included in AOCI | 5 | (13) |
| Settlements | (45) | (52) |
| Balance, end of the period | $920 | $998 |
| Total amount of unrealized gain/(loss) for the period included in AOCI relating to assets held at the end of the period | $5 | $(13) |
| Total amount of gain/(loss) for the period included in earnings relating to assets held at the end of the period | $3 | $4 |

---

**Fair Value Option.** The Bank has elected the fair value option for certain financial instruments to assist in mitigating potential earnings volatility that can arise from economic hedging relationships in which the carrying value of the hedged item is not adjusted for changes in fair value.

The following table presents the net gain/(loss) recognized in earnings on advances and consolidated obligation bonds held under fair value option for the three and six months ended June 30, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|<br>(In millions) | **June 30, 2025** | **June 30, 2024** | **June 30, 2025** | **June 30, 2024** |
| Advances | $10 | $6 | $43 | $(6) |
| Consolidated obligation bonds | (2) | (3) | (6) | (5) |
| Total | $8 | $3 | $37 | $(11) |

---

For instruments for which the fair value option has been elected, the related contractual interest income and contractual interest expense are recorded as part of net interest income on the Statements of Income. The remaining changes in fair value for instruments for which the fair value option has been elected are recorded as net gains/ (losses) on financial instruments held under the fair value option in the Statements of Income. For advances and consolidated obligations recorded under the fair value option, the Bank determined that none of the remaining changes in fair value were related to instrument-specific credit risk for the three and six months ended June 30, 2025 and 2024.

The following table presents the difference between the aggregate remaining contractual principal balance outstanding and aggregate fair value of advances and consolidated obligation bonds for which the Bank elected the fair value option at June 30, 2025, and December 31, 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|<br>(In millions) | **Principal Balance** | **Fair Value** | **Fair Value<br>Over/(Under)<br>Principal Balance** | **Principal Balance** | **Fair Value** | **Fair Value<br>Over/(Under)<br>Principal Balance** |
| Advances<sup>(1)</sup> | $5995 | $6061 | $66 | $5269 | $5286 | $17 |
| Consolidated obligation bonds | 395 | 388 | (7) | 450 | 436 | (14) |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;At June 30, 2025, and December 31, 2024, none of these advances were 90 days or more past due or had been placed on nonaccrual status.

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco**

**Notes to Financial Statements (continued)**

**Note 12 — Commitments and Contingencies**

As provided by the FHLBank Act or regulations governing the operations of the FHLBanks, all FHLBanks have joint and several liability for all FHLBank consolidated obligations, which are backed only by the financial resources of the FHLBanks. The par value of the outstanding consolidated obligations of the FHLBanks was $1.2 trillion at June 30, 2025, and December 31, 2024.

For more information on the joint and several liability regulation, see "Item 8. Financial Statements and Supplementary Data – Note 15 – Commitments and Contingencies" in the Bank's 2024 Form 10-K.

Off-balance sheet commitments as of June 30, 2025, and December 31, 2024, were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** |
|<br>(In millions) | **Expire Within <br>One Year** | **Expire After<br>One Year** | **Total** | **Total** |
| Standby letters of credit outstanding | $10540 | $9230 | $19770 | $19497 |
| Commitments to issue consolidated obligation bonds, par | 400 |  | 400 |  |
| Commitments to fund additional advances <sup>(1)</sup> |  |  |  | 5 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;Advances funded under advance commitments are fully collateralized at the time of funding.

The value of the Bank's obligations related to standby letters of credit is recorded in other liabilities and amounted to $55 million at June 30, 2025, and December 31, 2024. Standby letters of credit are fully collateralized at the time of issuance. Based on the Bank's credit analyses of members' financial condition and collateral requirements, the Bank deemed it unnecessary to record any additional liability for credit losses on the letters of credit outstanding or other off-balance sheet commitments as of June 30, 2025, and December 31, 2024. Advances funded under advance commitments are fully collateralized at the time of funding. For more information on the Bank's standby letters of credit transactions, see "Item 8. Financial Statements and Supplementary Data – Note 15 – Commitments and Contingencies" in the Bank's 2024 Form 10-K.

The Bank has pledged securities as collateral related to its cleared and uncleared derivatives. See Note 10 – Derivatives and Hedging Activities for additional information about the Bank's pledged collateral and other credit risk-related contingent features.

The Bank may be subject to various pending legal proceedings that may arise in the ordinary course of business. After consultation with legal counsel, the Bank does not anticipate that the ultimate liability, if any, arising out of these matters will have a material effect on its financial condition or results of operations.

------

<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Federal Home Loan Bank of San Francisco**

**Notes to Financial Statements (continued)**

**Note 13 — Transactions with Certain Members, Certain Nonmembers, and Other FHLBanks**

**Transactions with Members and Nonmembers.** The following tables set forth information at the dates and for the periods indicated with respect to transactions with members and nonmember borrowers that have an officer or director serving on the Board.

---

| | | |
|:---|:---|:---|
| (In millions) | **June 30, 2025** | **December 31, 2024** |
| **Assets:** |  |  |
| Advances | $5110 | $5713 |
| Mortgage loans held for portfolio | 68 | 70 |
| Accrued interest receivable | 4 | 9 |
| **Liabilities:** |  |  |
| Deposits | $107 | $16 |
| **Capital:** |  |  |
| Capital Stock | $188 | $190 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|<br>(In millions) | **June 30, 2025** | **June 30, 2024** | **June 30, 2025** | **June 30, 2024** |
| **Interest Income:** |  |  |  |  |
| Advances | $85 | $47 | $122 | $96 |
| Mortgage loans held for portfolio |  |  | 1 | 1 |
| **Interest Expense:** |  |  |  |  |
| Deposits | $1 | $— | $1 | $— |

---

All transactions with members, nonmembers, and their affiliates are entered into in the ordinary course of business. As of June 30, 2025, and December 31, 2024, no shareholder owned more than 10% of the total voting interests in the Bank because of the statutory limit on members' voting rights.

**Transactions with Other FHLBanks.** The Bank may occasionally enter into transactions with other FHLBanks. These transactions are summarized below.

*Overnight Funds*. The Bank may borrow or lend unsecured overnight funds from or to other FHLBanks. All such transactions are at current market rates. Interest income and interest expense related to these transactions with other FHLBanks are included in interest income and interest expense in the Statements of Income. Balances outstanding at period end with other FHLBanks, if any, are identified in the Bank's financial statements. During the six months ended June 30, 2025 and 2024, the Bank extended overnight loans to other FHLBanks for $500 million and $10 million, respectively. During the six months ended June 30, 2025 and 2024, the Bank borrowed $750 million and $40 million, respectively, from other FHLBanks.

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**ITEM 2.&nbsp;&nbsp;&nbsp;&nbsp;MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*Statements contained in this quarterly report on Form 10-Q, including statements describing the objectives, projections, estimates, or predictions of the future of the Federal Home Loan Bank of San Francisco (Bank) or the Federal Home Loan Bank System (FHLBank System), are "forward-looking statements." These statements may use forward-looking terms, such as "anticipate," "believe," "could," "estimate," "expect," "intend," "likely," "may," "probable," "plan," "project," "should," "will," "would," "possible," or their negatives or other variations on these terms, and include statements related to, among others, gains and losses on derivatives, plans to pay dividends and redeem or repurchase excess stock, future credit losses, future classification of securities, and reform legislation. The Bank cautions that by their nature, forward-looking statements involve risk or uncertainty that could cause actual results to 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. These risks and uncertainties include, among others, the following:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• changes in economic and market conditions, including inflation and interest rates, changes in the credit ratings of the United States, including any effects of downgrades in the sovereign credit rating of the United States, and conditions in the mortgage, housing, and capital markets;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• the volatility of market prices, rates, and indices;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *the timing and volume of market activity;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• natural disasters, pandemics or other widespread public health emergencies, terrorist attacks, civil unrest, geopolitical instability or conflicts (including the ongoing hostilities in Eastern Europe and the Middle East), trade disruptions, economic or other sanctions, or other unanticipated or catastrophic events;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• political events, including legislative, regulatory, judicial, or other developments that affect the Bank, its members, counterparties, or investors in the consolidated obligations of the Federal Home Loan Banks (FHLBanks), such as any government-sponsored enterprise (GSE) reforms, any changes resulting from the Federal Housing Finance Agency's (Finance Agency) review and analysis of the FHLBank System, including recommendations published in its "FHLBank System at 100: Focusing on the Future" report, changes in the Federal Home Loan Bank Act of 1932, as amended (FHLBank Act), changes in applicable sections of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, or changes in other statutes or regulations applicable to the FHLBanks;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• changes in the Bank's capital structure and composition;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• changes in the Bank's capital stock requirements;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• the ability of the Bank to pay dividends or redeem or repurchase capital stock;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• membership changes, including changes resulting from mergers or changes in the principal place of business of Bank members;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• the withdrawal, merger, dissolution, or receivership of one or more large members;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• the soundness of other financial institutions, including Bank members, nonmember borrowers, other counterparties, and the other FHLBanks;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• changes in Bank members' demand for Bank advances;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• changes in the value or liquidity of collateral underlying advances to Bank members or nonmember borrowers or collateral pledged by the Bank's derivative counterparties;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• changes in the fair value and economic value of, impairments of, and risks associated with the Bank's investments in mortgage loans and mortgage-backed securities (MBS) and the related credit enhancement protections;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• changes in the Bank's ability or intent to hold MBS and mortgage loans to maturity;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• competitive forces, including the availability of other sources of funding for Bank members;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• the willingness of the Bank's members to do business with the Bank;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• changes in investor demand for consolidated obligations (including the terms of consolidated obligations) or the terms of interest rate exchange or similar agreements;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• the impact of any changes and developments in FHLBank System-wide debt issuance and governance practices;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• the ability of each of the other FHLBanks to repay the principal and interest on consolidated obligations for which it is the primary obligor and with respect to which the Bank has joint and several liability;*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• changes in key Bank personnel;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• technology changes and enhancements, and the Bank's ability to develop and support technology and information systems sufficient to manage the risks of the Bank's business effectively (including cyber-security risks); and*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *changes in the FHLBanks' long-term credit ratings.*

*Readers of this report should not rely solely on the forward-looking statements and should consider all risks and uncertainties addressed throughout this report, as well as those discussed under "Item 1A – Risk Factors" in the Bank's Annual Report on Form 10-K for the year ended December 31, 2024 (2024 Form 10-K).*

**Quarterly Overview**

Net income for the second quarter of 2025 was $94 million, an increase of $8 million compared with the second quarter of 2024. The increase was primarily attributable to an increase in net interest income of $6 million, an increase in other income of $5 million, and a decrease in operating expense of $5 million, partially offset by an increase in voluntary housing and community investment contributions of $8 million.

The $6 million increase in net interest income was attributable to decreases in costs on lower balances of consolidated obligations and dividends paid on mandatorily redeemable capital stock classified as interest expense, offset by decreases in advance balances and yields on interest-earning assets.

The $5 million increase in other income was primarily driven by favorable net fair value movements in the Bank's financial instruments carried at fair value.

As of June 30, 2025, the Bank exceeded all regulatory capital requirements. The Bank exceeded its 4.0% regulatory capital requirement with a regulatory capital ratio of 8.7% at June 30, 2025, a decrease from 8.9% at December 31, 2024. The Bank also exceeded its risk-based capital requirement of $1.2 billion with $7.3 billion in permanent capital.

On July 24, 2025, the Bank's board of directors (Board) declared a quarterly cash dividend on the average capital stock outstanding during the second quarter of 2025 at an annualized rate of 8.75%. The Bank expects to pay the dividend on August 12, 2025.

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**Financial Highlights**

The following table presents a summary of certain financial information for the Bank for the periods indicated.

**Financial Highlights**

(Unaudited)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (Dollars in millions) | **June 30,<br>2025** | **March 31,<br>2025** | **December 31,<br>2024** | **September 30,<br>2024** | **June 30,<br>2024** |
| **Selected Balance Sheet Items at Quarter End** |  |  |  |  |  |
| Total Assets | $83146 | $77993 | $81735 | $83270 | $86331 |
| Advances | 39909 | 37913 | 45637 | 49473 | 54735 |
| Mortgage Loans Held for Portfolio, Net | 666 | 680 | 693 | 707 | 724 |
| Investments<sup>(1)</sup> | 42115 | 38982 | 34961 | 32587 | 30383 |
| Consolidated Obligations: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds | 54061 | 56079 | 58174 | 62745 | 54925 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discount Notes | 19174 | 12668 | 14378 | 11005 | 22316 |
| Mandatorily Redeemable Capital Stock | 131 | 153 | 331 | 465 | 565 |
| Capital Stock —Class B —Putable | 2575 | 2443 | 2458 | 2416 | 2449 |
| Unrestricted Retained Earnings | 3749 | 3707 | 3668 | 3631 | 3581 |
| Restricted Retained Earnings | 815 | 815 | 815 | 815 | 815 |
| Total Capital | 7186 | 7047 | 7004 | 6909 | 6901 |
| **Selected Operating Results for the Quarter** |  |  |  |  |  |
| Net Interest Income | $142 | $142 | $148 | $146 | $136 |
| Provision for/(Reversal of) Credit Losses | 3 | 1 | 5 | (4) | 3 |
| Other Income/(Loss) | 17 | 20 | 15 | 30 | 12 |
| Voluntary housing and community investment contributions | 10 | 10 | 14 | 21 | 2 |
| Other Expense | 41 | 46 | 43 | 44 | 45 |
| Affordable Housing Program (AHP) Assessment | 11 | 11 | 11 | 13 | 12 |
| Net Income/(Loss) | $94 | $94 | $90 | $102 | $86 |
| **Selected Other Data for the Quarter** |  |  |  |  |  |
| Net Interest Margin<sup>(2)</sup> | 0.68% | 0.76% | 0.72% | 0.70% | 0.65% |
| Return on Average Assets | 0.45 | 0.50 | 0.43 | 0.48 | 0.41 |
| Return on Average Equity | 5.22 | 5.37 | 5.15 | 5.88 | 5.10 |
| Annualized Dividend Rate | 8.75 | 8.75 | 8.75 | 8.75 | 8.75 |
| Dividend Payout Ratio<sup>(3)</sup> | 57.81 | 62.72 | 61.88 | 52.46 | 43.93 |
| Average Equity to Average Assets Ratio | 8.66 | 9.25 | 8.36 | 8.21 | 8.01 |
| **Selected Other Data at Quarter End** |  |  |  |  |  |
| Regulatory Capital Ratio<sup>(4)</sup> | 8.74 | 9.13 | 8.90 | 8.80 | 8.58 |
| Duration Gap (in months) | (0.3) | (0.4) | 1.2 | 1.1 | 1.1 |

---

(1)Investments consist of interest-bearing deposits, securities purchased under agreements to resell, federal funds sold, available-for-sale securities, and held-to-maturity securities.

(2)Net interest margin is calculated as net interest income (annualized) divided by average interest-earning assets.

(3)This ratio is calculated as dividends per share divided by net income per share.

(4)This 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 AOCI.

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**Results of Operations**

**Net Interest Income for the Three Months Ended June 30, 2025 and 2024.** The primary source of the Bank's earnings is net interest income, which is the interest earned on advances, mortgage loans, and investments, less interest paid on consolidated obligations, deposits, mandatorily redeemable capital stock, and other borrowings. The table that follows presents the average balances of interest-earning asset categories and the sources that funded those interest-earning assets (liabilities and capital) for the three months ended June 30, 2025 and 2024, together with the related interest income and expense. This table also presents the average rates on total interest-earning assets and the average costs of total funding sources.

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***Second Quarter of 2025 Compared to Second Quarter of 2024***

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Average Balance Sheets** | **Average Balance Sheets** | **Average Balance Sheets** | **Average Balance Sheets** | **Average Balance Sheets** | **Average Balance Sheets** | **Average Balance Sheets** |
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** |
| (Dollars in millions) | **Average<br>Balance** | **Interest<br>Income/<br>Expense** | **Average<br>Rate** | **Average<br>Balance** | **Interest<br>Income/<br>Expense** | **Average<br>Rate** |
| Assets |  |  |  |  |  |  |
| Interest-earning assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing deposits | $3715 | $41 | 4.43% | $4588 | $62 | 5.44% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities purchased under agreements to resell | 2964 | 32 | 4.37 | 1056 | 14 | 5.42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal funds sold | 6259 | 68 | 4.39 | 4415 | 59 | 5.42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Available-for-sale (AFS) securities:<sup>(1)</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MBS<sup>(1)(2)</sup> | 13944 | 196 | 5.64 | 13378 | 227 | 6.81 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury obligations | 6455 | 74 | 4.59 | 4604 | 65 | 5.70 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Held-to-maturity (HTM) securities: MBS | 1393 | 17 | 4.88 | 1710 | 24 | 5.60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances<sup>(3)</sup> | 47921 | 533 | 4.46 | 53795 | 731 | 5.46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans held for portfolio<sup>(4)</sup> | 674 | 5 | 2.98 | 735 | 5 | 2.91 |
| Total interest-earning assets | 83325 | 966 | 4.65 | 84281 | 1187 | 5.67 |
| Other assets<sup>(5)</sup> | 858 |  |  | 791 |  |  |
| Total Assets | $84183 |  |  | $85072 |  |  |
| Liabilities and Capital |  |  |  |  |  |  |
| Interest-bearing liabilities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated obligations: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds | $56058 | $606 | 4.33% | $59086 | $786 | 5.35% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discount notes | 18444 | 200 | 4.34 | 16259 | 218 | 5.35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits and other borrowings | 1440 | 15 | 4.28 | 1395 | 19 | 5.39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mandatorily redeemable capital stock | 148 | 3 | 10.08 | 621 | 28 | 18.28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowings from other FHLBanks | 7 |  | 4.39 |  |  |  |
| Total interest-bearing liabilities | 76097 | 824 | 4.34 | 77361 | 1051 | 5.46 |
| Other liabilities<sup>(5)</sup> | 797 |  |  | 900 |  |  |
| Total Liabilities | 76894 |  |  | 78261 |  |  |
| Total Capital | 7289 |  |  | 6811 |  |  |
| Total Liabilities and Capital | $84183 |  |  | $85072 |  |  |
| Net Interest Income |  | $142 |  |  | $136 |  |
| Net Interest Spread<sup>(6)</sup> |  |  | 0.31% |  |  | 0.21% |
| Net Interest Margin<sup>(7)</sup> |  |  | 0.68% |  |  | 0.65% |
| Interest-earning Assets/Interest-bearing Liabilities | 109.50% |  |  | 108.95% |  |  |

---

(1)The average balances of AFS securities are reflected at amortized cost. As a result, the average rates do not reflect changes in fair value.

(2)Interest income included net prepayment fees on AFS MBS of $2 million and $1 million for the three months ended June 30, 2025 and 2024, respectively.

(3)Interest income includes net prepayment fees on advances of $1 million and a de minimis amount for the three months ended June 30, 2025 and 2024, respectively.

(4)Nonperforming mortgage loans are included in average balances used to determine average rate.

(5)Includes forward settling transactions and valuation adjustments for certain cash items received/(paid).

(6)Net interest spread is calculated as the difference between the average rate earned on interest-earning assets and the average rate paid on interest-bearing liabilities.

(7)Net interest margin is calculated as net interest income (annualized) divided by average interest-earning assets.

Net interest income in the second quarter of 2025 was $142 million, a 4% increase from $136 million in the second quarter of 2024. The average balance of total interest-earning assets in the second quarter of 2025 was $83.3 billion, a 1% decrease from $84.3 billion in the second quarter of 2024. The following table details the changes in interest income and interest expense for the second quarter of 2025 compared to the second quarter of 2024. Changes in both volume and interest rates influence changes in net interest income, net interest spread, and net interest margin.

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| | | | |
|:---|:---|:---|:---|
| **Change in Net Interest Income: Rate/Volume Analysis** <br>**Three Months Ended June 30, 2025, versus Three Months Ended June 30, 2024** | **Change in Net Interest Income: Rate/Volume Analysis** <br>**Three Months Ended June 30, 2025, versus Three Months Ended June 30, 2024** | **Change in Net Interest Income: Rate/Volume Analysis** <br>**Three Months Ended June 30, 2025, versus Three Months Ended June 30, 2024** | **Change in Net Interest Income: Rate/Volume Analysis** <br>**Three Months Ended June 30, 2025, versus Three Months Ended June 30, 2024** |
| | **Increase/<br>(Decrease)** | **Attributable to Changes in**<sup>(1)</sup> | **Attributable to Changes in**<sup>(1)</sup> |
| (In millions) | **Increase/<br>(Decrease)** | **Volume** | **Rate** |
| Interest income: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing deposits | $(21) | $(11) | $(10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities purchased under agreements to resell | 18 | 21 | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal funds sold | 9 | 22 | (13) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AFS securities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MBS<sup>(2)</sup> | (31) | 9 | (40) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury obligations<sup>(2)</sup> | 9 | 23 | (14) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HTM securities: MBS | (7) | (4) | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances<sup>(2)</sup>  | (198) | (74) | (124) |
| Total interest income | (221) | (14) | (207) |
| Interest expense: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated obligations: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds<sup>(2)</sup> | (180) | (38) | (142) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discount notes<sup>(2)</sup> | (18) | 28 | (46) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits and other borrowings | (4) |  | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mandatorily redeemable capital stock | (25) | (16) | (9) |
| Total interest expense | (227) | (26) | (201) |
| Net interest income | $6 | $12 | $(6) |

---

(1)Combined rate/volume variances, a third element of the calculation, are allocated to the rate and volume variances based on their relative sizes.

(2)Interest income/expense and average rates include the interest effect of associated interest rate exchange agreements.

The increase in net interest income was primarily driven by a lower average balance of mandatorily redeemable capital stock, which changed by 76% to $148 million at June 30, 2025 from $621 million at June 30, 2024. The net interest margin was 68 basis points for the second quarter of 2025, 3 basis points higher than the net interest margin for the second quarter of 2024, which was 65 basis points. The increase in net interest margin was primarily driven by decreases in interest expense of consolidated obligation bonds to $606 million during the three months ended June 30, 2025, from $786 million during the three months ended June 30, 2024, and on mandatorily redeemable capital stock to $3 million during the three months ended June 30, 2025, from $28 million during the three months ended June 30, 2024, as well as a lower advances average balance of $5.9 billion to $47.9 billion as of June 30, 2025, from $53.8 billion as of June 30, 2024.

Member demand for wholesale funding from the Bank can vary greatly depending on a number of factors, including economic and market conditions affecting the liquidity or solvency of the Bank's members and potential members, competition from other wholesale funding sources, member deposit inflows and outflows and changes in liquidity, the activity level of the primary and secondary mortgage markets, and strategic decisions made by individual member institutions, including those related to business combinations. Accordingly, Bank asset levels and operating results may vary significantly from period to period. Events affecting the financial services industry contributed to the liquidation or receivership of some of the Bank's larger borrowers during 2023. The loss of Bank members through liquidation, receivership, or acquisition by nonmember institutions, especially involving some of the Bank's larger borrowers, has had the effect of reducing aggregate member demand for wholesale funding, as nonmembers (including former members and member successors) are not eligible to borrow new advances or renew existing advances as they mature. This has resulted in lower levels of advance balances and a reduction in total interest income earned from advances. As a result of the inability of nonmembers to seek new advances from the Bank, the Bank's level of advances and the associated net interest income in the future will be determined by many factors including the ability of existing Bank members to generate new business, seek new advances, or pursue consolidation opportunities within the banking industry. The maturity or prepayment of advances by nonmember borrowers is likely to have an adverse impact over time on the Bank's financial performance and may reduce the Bank's ability to grow advances in the future and impact the Bank's long-term strategic plans and operations.

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See "Item 1. Financial Statements – Note 4 – Advances" for more information on the Bank's largest members and "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations – Quarterly Overview" for more information on the loss of the Bank's largest borrowers and its potential effect on the Bank's opportunity to grow advances.

The following tables present the effect of derivatives and hedging activities on net interest income for the three months ended June 30, 2025 and 2024.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|<br>(In millions) | **Advances** | **AFS Securities** | **Consolidated Obligation Bonds** | **Consolidated Obligation Discount Notes** | **Total** |
| (Amortization)/accretion of hedging activities | $(6) | $(24) | $— | $— | $(30) |
| Net gain/(loss) on derivatives and hedged items | (1) |  |  |  | (1) |
| Net interest settlements on derivatives | 39 | 86 | (58) | (2) | 65 |
| Price alignment amount<sup>(1)</sup> | (1) | (4) | (1) |  | (6) |
| Total effect on net interest income | $31 | $58 | $(59) | $(2) | $28 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** |
|<br>(In millions) | **Advances** | **AFS Securities** | **Consolidated Obligation Bonds** | **Consolidated Obligation Discount Notes** | **Total** |
| (Amortization)/accretion of hedging activities | $(6) | $(26) | $— | $— | $(32) |
| Net gain/(loss) on derivatives and hedged items | 2 | 1 |  | (1) | 2 |
| Net interest settlements on derivatives | 161 | 136 | (134) | (1) | 162 |
| Price alignment amount<sup>(1)</sup> | (9) | (9) |  |  | (18) |
| Total effect on net interest income | $148 | $102 | $(134) | $(2) | $114 |

---

(1)This amount relates to derivatives for which variation margin on cleared derivatives is characterized as a daily settled contract.

**Other Income/(Loss).** The following table presents the components of "Other Income/(Loss)" for the three months ended June 30, 2025 and 2024.

---

| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
|<br>(In millions) | **June 30, 2025** | **June 30, 2024** |
| Net gain/(loss) on advances and consolidated obligation bonds held under fair value option | $8 | $3 |
| Net gain/(loss) on derivatives | 1 | 3 |
| Standby letters of credit fees | 5 | 4 |
| Other, net | 3 | 2 |
| Total Other Income/(Loss) | $17 | $12 |

---

*Net Gain/(Loss) on Advances and Consolidated Obligation Bonds Held Under Fair Value Option –* The favorable change in net gains on advances and consolidated obligation bonds held under the fair value option for the three months ended June 30, 2025, compared to the same period in 2024, was primarily due to the decline in interest rates and the Bank's higher balance of fixed rate advances relative to consolidated obligations held under the fair value option.

Additional information about advances and consolidated obligation bonds held under the fair value option is provided in "Item 1. Financial Statements – Note 11 – Fair Value."

*Net Gain/(Loss) on Derivatives –* Accounting guidance requires the Bank to carry all of its derivative instruments on the Statements of Condition at fair value. Certain derivatives are associated with assets or liabilities but do not qualify as fair value hedges. These economic hedges are recorded on the Statements of Condition at fair value with

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the unrealized gain or loss recorded in earnings without any offsetting unrealized gain or loss from the associated asset or liability.

The following table shows the accounting classification of economic hedges and the categories of hedged items that contributed to the gains and losses on derivatives that were recorded in "Net gain/(loss) on derivatives" in the second quarter of 2025 and 2024.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Sources of Gains/(Losses) Recorded in Net Gain/(Loss) on Derivatives**<br>**Three Months Ended June 30, 2025, Compared to Three Months Ended June 30, 2024** | **Sources of Gains/(Losses) Recorded in Net Gain/(Loss) on Derivatives**<br>**Three Months Ended June 30, 2025, Compared to Three Months Ended June 30, 2024** | **Sources of Gains/(Losses) Recorded in Net Gain/(Loss) on Derivatives**<br>**Three Months Ended June 30, 2025, Compared to Three Months Ended June 30, 2024** | **Sources of Gains/(Losses) Recorded in Net Gain/(Loss) on Derivatives**<br>**Three Months Ended June 30, 2025, Compared to Three Months Ended June 30, 2024** | **Sources of Gains/(Losses) Recorded in Net Gain/(Loss) on Derivatives**<br>**Three Months Ended June 30, 2025, Compared to Three Months Ended June 30, 2024** | **Sources of Gains/(Losses) Recorded in Net Gain/(Loss) on Derivatives**<br>**Three Months Ended June 30, 2025, Compared to Three Months Ended June 30, 2024** | **Sources of Gains/(Losses) Recorded in Net Gain/(Loss) on Derivatives**<br>**Three Months Ended June 30, 2025, Compared to Three Months Ended June 30, 2024** |
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** |
| (In millions)<br>**Hedged Item** | **Gain/(Loss) on<br>Economic<br>Hedges** | **Income/<br>(Expense) on<br>Economic<br>Hedges** | **Total** | **Gain/(Loss) on<br>Economic<br>Hedges** | **Income/<br>(Expense) on<br>Economic<br>Hedges** | **Total** |
| Advances: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Elected for fair value option | $(14) | $13 | $(1) | $(7) | $13 | $6 |
| &nbsp;&nbsp;&nbsp;Not elected for fair value option | (4) | 7 | 3 | (5) | 7 | 2 |
| Consolidated obligation bonds: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Elected for fair value option | 2 | (2) |  | 3 | (5) | (2) |
| &nbsp;&nbsp;&nbsp;Not elected for fair value option | 4 | (4) |  | 4 | (7) | (3) |
| Consolidated obligation discount notes: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Not elected for fair value option | (1) |  | (1) | 1 |  | 1 |
| Price alignment amount<sup>(1)</sup> |  |  |  | (1) |  | (1) |
| Total | $(13) | $14 | $1 | $(5) | $8 | $3 |

---

(1)This amount relates to derivatives for which variation margin on cleared derivatives is characterized as a daily settled contract.

During the second quarter of 2025, net gains on derivatives totaled $1 million compared to net gains of $3 million in the second quarter of 2024. These amounts included interest income of $14 million and $8 million resulting from net settlements on derivative instruments used in economic hedges in the second quarter of 2025 and 2024, respectively. Excluding the impact of interest income or expense from net settlements on derivative instruments used in economic hedges, the gains or losses on economic hedges were primarily associated with the effects of changes in market interest rates, interest rate spreads, interest rate volatility, and other market factors during the period. The ongoing impact of these valuation adjustments on the Bank cannot be predicted and the effects of these valuation adjustments may lead to significant volatility in future earnings, including earnings available for dividends.

Additional information about derivatives and hedging activities is provided in "Item 1. Financial Statements – Note 10 – Derivatives and Hedging Activities."

**Other Expense.** During the second quarter of 2025, other expenses totaled $51 million, compared to $47 million in the second quarter of 2024. The $4 million increase in other expense was primarily attributable to the Bank's increase in voluntary housing and community investment contributions mainly to fund downpayment assistance grants to homebuyers (delivered by participating member financial institutions), partially offset by a decrease in compensation and benefits.

**Affordable Housing Program**. The Bank's statutory Affordable Housing Program (AHP) assessments equaled $11 million and $12 million for the three months ended June 30, 2025 and 2024, respectively. For more information on the Bank's AHP, see "Item 1. Business – Affordable Housing Program" in the Bank's 2024 Form 10-K.

**Return on Average Equity.** Return on average equity (ROE) was 5.22% (annualized) for the second quarter of 2025, compared to 5.10% (annualized) for the second quarter of 2024. The increase was driven by an increase in net income for the second quarter of 2025 and an increase in average equity from $6.8 billion in the second quarter of 2024 to $7.3 billion in the second quarter of 2025. The increase in average equity was driven by an increase in the averages of capital stock outstanding and unrestricted retained earnings.

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<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Dividends and Retained Earnings.** In the second quarter of 2025, the Bank paid dividends at an annualized rate of 8.75%, totaling $58 million, including $52 million in dividends on capital stock and $6 million in dividends on mandatorily redeemable capital stock. In the second quarter of 2024, the Bank paid dividends at an annualized rate of 8.75%, totaling $66 million, including $51 million in dividends on capital stock and $15 million in dividends on mandatorily redeemable capital stock.

For more information on the Bank's Excess Stock Repurchase, Retained Earnings, and Dividend Framework, see "Item 1. Financial Statements – Note 9 – Capital" in this report and see "Item 1. Business – Dividends and Retained Earnings," "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Risk Management – Liquidity Risk," and "Item 8. Financial Statements and Supplementary Data – Note 11 – Capital – Excess Stock Repurchase, Retained Earnings, and Dividend Framework" in the Bank's 2024 Form 10-K.

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<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Net Interest Income for the Six Months Ended June 30, 2025 and 2024.** The table that follows presents the average balances of interest-earning asset categories and the sources that funded those interest-earning assets (liabilities and capital) for the six months ended June 30, 2025 and 2024, together with the related interest income and expense. This table also presents the average rates on total interest-earning assets and the average costs of total funding sources.

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<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

***Six Months Ended June 30, 2025, Compared to Six Months Ended June 30, 2024***

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Average Balance Sheets** | **Average Balance Sheets** | **Average Balance Sheets** | **Average Balance Sheets** | **Average Balance Sheets** | **Average Balance Sheets** | **Average Balance Sheets** |
| | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** |
| (Dollars in millions) | **Average<br>Balance** | **Interest<br>Income/<br>Expense** | **Average<br>Rate** | **Average<br>Balance** | **Interest<br>Income/<br>Expense** | **Average<br>Rate** |
| Assets |  |  |  |  |  |  |
| Interest-earning assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing deposits | $3868 | $85 | 4.43% | $4261 | $115 | 5.45% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities purchased under agreements to resell | 2219 | 48 | 4.38 | 1464 | 39 | 5.42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal funds sold | 5843 | 127 | 4.39 | 4976 | 134 | 5.42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AFS securities:<sup>(1)</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MBS<sup>(1)(2)</sup> | 13838 | 391 | 5.69 | 13418 | 446 | 6.68 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury obligations | 6442 | 147 | 4.62 | 4565 | 129 | 5.70 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HTM securities: MBS | 1429 | 35 | 4.93 | 1750 | 49 | 5.59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances<sup>(3)</sup> | 45220 | 1006 | 4.48 | 54813 | 1490 | 5.47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans held for portfolio<sup>(4)</sup> | 680 | 10 | 3.04 | 742 | 11 | 2.99 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans to other FHLBanks | 3 |  | 4.39 |  |  |  |
| Total interest-earning assets | 79542 | 1849 | 4.69 | 85989 | 2413 | 5.64 |
| Other assets<sup>(5)</sup> | 806 |  |  | 720 |  |  |
| Total Assets | $80348 |  |  | $86709 |  |  |
| Liabilities and Capital |  |  |  |  |  |  |
| Interest-bearing liabilities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated obligations: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds | $55671 | $1200 | 4.35% | $61647 | $1636 | 5.34% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discount notes | 15107 | 326 | 4.34 | 15362 | 411 | 5.35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits and other borrowings | 1479 | 31 | 4.29 | 1331 | 36 | 5.41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mandatorily redeemable capital stock | 202 | 8 | 8.23 | 652 | 44 | 13.66 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowings from other FHLBanks | 7 |  | 4.39 |  |  |  |
| Total interest-bearing liabilities | 72466 | 1565 | 4.36 | 78992 | 2127 | 5.42 |
| Other liabilities<sup>(5)</sup> | 701 |  |  | 989 |  |  |
| Total Liabilities | 73167 |  |  | 79981 |  |  |
| Total Capital | 7181 |  |  | 6728 |  |  |
| Total Liabilities and Capital | $80348 |  |  | $86709 |  |  |
| Net Interest Income |  | $284 |  |  | $286 |  |
| Net Interest Spread<sup>(6)</sup> |  |  | 0.33% |  |  | 0.22% |
| Net Interest Margin<sup>(7)</sup> |  |  | 0.72% |  |  | 0.67% |
| Interest-earning Assets/Interest-bearing Liabilities | 109.76% |  |  | 108.86% |  |  |

---

(1)The average balances of AFS securities are reflected at amortized cost. As a result, the average rates do not reflect changes in fair value.

(2)Interest income included net prepayment fees on AFS MBS of $7 million and $2 million for the six months ended June 30, 2025 and 2024, respectively.

(3)Interest income includes net prepayment fees on advances of $3 million and $2 million for the six months ended June 30, 2025 and 2024, respectively.

(4)Nonperforming mortgage loans are included in average balances used to determine average rate.

(5)Includes forward settling transactions and valuation adjustments for certain cash items received/(paid).

(6)Net interest spread is calculated as the difference between the average rate earned on interest-earning assets and the average rate paid on interest-bearing liabilities.

(7)Net interest margin is calculated as net interest income (annualized) divided by average interest-earning assets.

Net interest income for the first six months of 2025 was $284 million, a 1% decrease from $286 million for the first six months of 2024. The average balance of total interest-earning assets in the first six months of 2025 was $79.5 billion, a 7% decrease from $86.0 billion in the first six months of 2024. The following table details the changes in interest income and interest expense for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. Changes in both volume and interest rates influence changes in net interest income, net interest spread, and net interest margin.

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<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

---

| | | | |
|:---|:---|:---|:---|
| **Change in Net Interest Income: Rate/Volume Analysis** <br>**Six Months Ended June 30, 2025, versus to Six Months Ended June 30, 2024** | **Change in Net Interest Income: Rate/Volume Analysis** <br>**Six Months Ended June 30, 2025, versus to Six Months Ended June 30, 2024** | **Change in Net Interest Income: Rate/Volume Analysis** <br>**Six Months Ended June 30, 2025, versus to Six Months Ended June 30, 2024** | **Change in Net Interest Income: Rate/Volume Analysis** <br>**Six Months Ended June 30, 2025, versus to Six Months Ended June 30, 2024** |
| | **Increase/<br>(Decrease)** | **Attributable to Changes in**<sup>(1)</sup> | **Attributable to Changes in**<sup>(1)</sup> |
| (In millions) | **Increase/<br>(Decrease)** | **Volume** | **Rate** |
| Interest-earning assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing deposits | $(30) | $(10) | $(20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities purchased under agreements to resell | 9 | 17 | (8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal funds sold | (7) | 21 | (28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AFS securities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MBS<sup>(2)</sup> | (55) | 13 | (68) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury obligations<sup>(2)</sup> | 18 | 46 | (28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HTM securities: MBS | (14) | (8) | (6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances<sup>(2)</sup>  | (484) | (239) | (245) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans held for portfolio | (1) | (1) |  |
| Total interest-earning assets | (564) | (161) | (403) |
| Interest-bearing liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated obligations: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds<sup>(2)</sup> | (436) | (149) | (287) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discount notes<sup>(2)</sup> | (85) | (7) | (78) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits | (5) | 3 | (8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mandatorily redeemable capital stock | (36) | (23) | (13) |
| Total interest-bearing liabilities | (562) | (176) | (386) |
| Net interest income | $(2) | $15 | $(17) |

---

(1)Combined rate/volume variances, a third element of the calculation, are allocated to the rate and volume variances based on their relative sizes.

(2)Interest income/expense and average rates include the interest effect of associated interest rate exchange agreements.

The $2 million decline in net interest income was primarily driven by a lower yield on advances, which decreased to a yield of 4.48% during the six months ended June 30, 2025 from a yield of 5.47% during the six months ended June 30, 2024. The net interest margin was 72 basis points for the first six months of 2025, 5 basis points higher than the net interest margin for the first six months of 2024, which was 67 basis points. The increase in net interest margin was driven mainly by a lower advances average balance of $9.6 billion to $45.2 billion as of June 30, 2025, from $54.8 billion as of June 30, 2024.

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<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

The following tables present the effect of derivatives and hedging activities on net interest income for the six months ended June 30, 2025 and 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|<br>(In millions) | **Advances** | **AFS Securities** | **Consolidated Obligation** <br>**Bonds** | **Total** |
| (Amortization)/accretion of hedging activities | $(11) | $(49) | $— | $(60) |
| Net gain/(loss) on derivatives and hedged items | (1) | (2) |  | (3) |
| Net interest settlements on derivatives | 85 | 175 | (114) | 146 |
| Price alignment amount<sup>(1)</sup> | (4) | (9) | (1) | (14) |
| Total effect on net interest income<sup>(2)</sup> | $69 | $115 | $(115) | $69 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** |
|<br>(In millions) | **Advances** | **AFS Securities** | **Consolidated Obligation Bonds** | **Consolidated Obligation Discount Notes** | **Total** |
| (Amortization)/accretion of hedging activities | $(12) | $(51) | $— | $— | $(63) |
| Net gain/(loss) on derivatives and hedged items | 4 | 2 |  | (1) | 5 |
| Net interest settlements on derivatives | 333 | 272 | (272) | (1) | 332 |
| Price alignment amount<sup>(1)</sup> | (19) | (17) | (1) |  | (37) |
| Total effect on net interest income | $306 | $206 | $(273) | $(2) | $237 |

---

(1)This amount relates to derivatives for which variation margin on cleared derivatives is characterized as a daily settled contract.

(2)The effect of derivatives and hedging activities on net interest income for consolidated obligation discount notes was de minimis for the six months ended June 30, 2025.

See "Item 1. Financial Statements – Note 4 – Advances" for more information on the Bank's largest members and "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations – Quarterly Overview" for more information on the loss of the Bank's largest borrowers and its potential effect on the Bank's opportunity to grow advances.

**Other Income/(Loss).** The following table presents the components of "Other Income/(Loss)" for the six months ended June 30, 2025 and 2024.

---

| | | |
|:---|:---|:---|
| | **Six Months Ended** | **Six Months Ended** |
|<br>(In millions) | **June 30, 2025** | **June 30, 2024** |
| Net gain/(loss) on advances and consolidated obligation bonds held under fair value option | $37 | $(11) |
| Net gain/(loss) on derivatives | (14) | 18 |
| Standby letters of credit fees | 10 | 9 |
| Termination of long-term funding arrangement |  | 30 |
| Other, net | 4 | 2 |
| Total Other Income/(Loss) | $37 | $48 |

---

*Net Gain/(Loss) on Advances and Consolidated Obligation Bonds Held Under Fair Value Option –* The net gains/(losses) on advances and consolidated obligation bonds held under the fair value option were primarily driven by the effects of changes in market interest rates, interest rate spreads, interest rate volatility, and other market factors relative to the actual terms and volume of the advances and consolidated obligation bonds during the period.

Additional information about advances and consolidated obligation bonds held under the fair value option is provided in "Item 1. Financial Statements – Note 11 – Fair Value."

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<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

*Net Gain/(Loss) on Derivatives –* The following table shows the accounting classification of economic hedges and the categories of hedged items that contributed to the gains and losses on derivatives that were recorded in "Net gain/(loss) on derivatives" for the six months ended June 30, 2025 and 2024.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Sources of Gains/(Losses) Recorded in Net Gain/(Loss) on Derivatives**<br>**Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024** | **Sources of Gains/(Losses) Recorded in Net Gain/(Loss) on Derivatives**<br>**Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024** | **Sources of Gains/(Losses) Recorded in Net Gain/(Loss) on Derivatives**<br>**Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024** | **Sources of Gains/(Losses) Recorded in Net Gain/(Loss) on Derivatives**<br>**Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024** | **Sources of Gains/(Losses) Recorded in Net Gain/(Loss) on Derivatives**<br>**Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024** | **Sources of Gains/(Losses) Recorded in Net Gain/(Loss) on Derivatives**<br>**Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024** | **Sources of Gains/(Losses) Recorded in Net Gain/(Loss) on Derivatives**<br>**Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024** |
| | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** |
| (In millions) | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** |
| **Hedged Item** | **Gain/(Loss) on Economic<br>Hedges** | **Income/<br>(Expense) on Economic<br>Hedges** | **Total** | **Gain/(Loss) on Economic<br>Hedges** | **Income/<br>(Expense) on Economic<br>Hedges** | **Total** |
| Advances: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Elected for fair value option | $(46) | $24 | $(22) | $11 | $25 | $36 |
| &nbsp;&nbsp;&nbsp;Not elected for fair value option | (5) | 13 | 8 | (11) | 14 | 3 |
| Consolidated obligation bonds: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Elected for fair value option | 6 | (5) | 1 | 3 | (12) | (9) |
| &nbsp;&nbsp;&nbsp;Not elected for fair value option | 10 | (8) | 2 | 2 | (14) | (12) |
| Consolidated obligation discount notes: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Not elected for fair value option | (2) |  | (2) | 2 |  | 2 |
| Price alignment amount<sup>(1)</sup> | (1) |  | (1) | (2) |  | (2) |
| Total | $(38) | $24 | $(14) | $5 | $13 | $18 |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;This amount relates to derivatives for which variation margin on cleared derivatives is characterized as a daily settled contract.

During the first six months of 2025, net losses on derivatives totaled $14 million compared to net gains of $18 million in the first six months of 2024. These amounts included interest income of $24 million and $13 million resulting from net settlements on derivative instruments used in economic hedges in the first six months of 2025 and 2024, respectively. Excluding the impact of interest income or expense from net settlements on derivative instruments used in economic hedges, the gains or losses on economic hedges were primarily associated with the effects of changes in market interest rates, interest rate spreads, interest rate volatility, and other market factors during the period. The ongoing impact of these valuation adjustments on the Bank cannot be predicted and the effects of these valuation adjustments may lead to significant volatility in future earnings, including earnings available for dividends.

Additional information about derivatives and hedging activities is provided in "Item 1. Financial Statements – Note 10 – Derivatives and Hedging Activities."

*Termination of Long-Term Funding Arrangement* – In connection with certain litigation involving its private-label residential mortgage-backed securities (PLRMBS), the Bank entered into a long-term funding arrangement in 2017 with a member, under which the member agreed to obtain or maintain certain advances from the Bank. During the six months ended June 30, 2024, the Bank terminated the long-term funding arrangement, and in accordance with its terms, recognized $30 million of other income.

**Other Expense.** During the first six months of 2025, other expenses totaled $107 million, compared to $97 million in the first six months of 2024. The $10 million increase in other expense was primarily attributable to the Bank's increase in voluntary housing and community investment contributions mainly to fund downpayment assistance grants to homebuyers (delivered by participating member financial institutions), partially offset by a decrease in compensation and benefits.

**Affordable Housing Program.** The Bank's statutory AHP assessment equaled $22 million and $28 million for the six months ended June 30, 2025 and 2024, respectively, with the decrease attributable to lower net earnings.

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<u>[**Table of Contents**](#ifb1eb174e82b4cf8b7191a9a6fb2d1a5_4)</u>

**Return on Average Equity.** ROE (annualized) was 5.29% for the first six months of 2025, compared to 6.28% for the first six months of 2024. The decrease reflected lower net income for the first six months of 2025, which decreased 10% to $188 million in the first six months of 2025 from $210 million in the first six months of 2024, which was partially offset by an increase in average equity to $7.2 billion in the first six months of 2025 from $6.7 billion in the first six months of 2024. The increase in average equity was driven by an increase in the averages of capital stock outstanding, unrestricted retained earnings, and unrealized gains on AFS agency MBS.

**Dividends and Retained Earnings.** In the first six months of 2025, the Bank paid dividends at an annualized rate of 8.75%, totaling $122 million, including $107 million in dividends on capital stock and $15 million in dividends on mandatorily redeemable capital stock. In the first six months of 2024, the Bank paid dividends at an annualized rate of 8.75%, totaling $135 million, including $104 million in dividends on capital stock and $31 million in dividends on mandatorily redeemable capital stock.

For more information, see "Item 1. Financial Statements – Note 9 – Capital" in this report and see "Item 1. Business – Dividends and Retained Earnings," "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Risk Management – Liquidity Risk," and "Item 8. Financial Statements and Supplementary Data – Note 11 – Capital – Excess Stock Repurchase, Retained Earnings, and Dividend Framework" in the Bank's 2024 Form 10-K.

**Financial Condition** 

Total assets were $83.1 billion at June 30, 2025, compared to $81.7 billion at December 31, 2024. Advances decreased by $5.7 billion, or 13%, to $39.9 billion at June 30, 2025, from $45.6 billion at December 31, 2024. Average advances were $45.2 billion for the first six months of 2025, a 18% decrease from $54.8 billion for the first six months of 2024. Advances declined primarily due to maturities of advances held by nonmembers in connection with certain Bank member acquisitions that occurred in 2023. Investments at June 30, 2025, were $42.1 billion, a net increase of $7.1 billion from $35.0 billion at December 31, 2024, attributable to increases in securities purchased under agreements to resell of $4.0 billion and federal funds sold of $3.3 billion.

Advances outstanding at June 30, 2025, included net unrealized gains of $24 million, of which $42 million represented unrealized losses on hedged advances and $66 million represented unrealized gains on economically hedged advances that are carried at fair value in accordance with the fair value option. Advances outstanding at December 31, 2024, included net unrealized losses of $181 million, of which $198 million represented unrealized losses on hedged advances and $17 million represented unrealized gains on economically hedged advances that are carried at fair value in accordance with the fair value option. The change in the net unrealized gains and losses on advances from December 31, 2024, to June 30, 2025, was primarily attributable to the effects of changes in market interest rates, interest rate spreads, interest rate volatility, and other market factors relative to the actual terms and volume of the advances during the period.

Total liabilities were $76.0 billion at June 30, 2025, an increase of $1.3 billion from $74.7 billion at December 31, 2024, primarily reflecting a $683 million increase in consolidated obligations outstanding to $73.2 billion at June 30, 2025, from $72.6 billion at December 31, 2024. Average consolidated obligations were $70.8 billion for the first six months of 2025 and $77.0 billion for the first six months of 2024.

Consolidated obligations outstanding at June 30, 2025, included net unrealized gains of $194 million on hedged consolidated obligation bonds and unrealized gains of $7 million on economically hedged consolidated obligation bonds that are carried at fair value in accordance with the fair value option. Consolidated obligations outstanding at December 31, 2024, included net unrealized gains of $363 million on hedged consolidated obligation bonds and unrealized gains of $14 million on economically hedged consolidated obligation bonds that are carried at fair value in accordance with the fair value option. The change in the net unrealized gains on the consolidated obligation bonds from December 31, 2024, to June 30, 2025, was primarily attributable to the effects of changes in market interest rates, interest rate spreads, interest rate volatility, and other market factors relative to consolidated obligation bond terms and volumes during the period.

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As provided by the FHLBank Act or regulations governing the operations of the FHLBanks, all FHLBanks have joint and several liability for all FHLBank consolidated obligations. The joint and several liability regulation authorizes the Finance Agency to require any FHLBank to repay all or a portion of the principal or interest on consolidated obligations for which another FHLBank is the primary obligor. The Bank has never been asked or required to repay the principal or interest on any consolidated obligation on behalf of another FHLBank, and as of June 30, 2025, and through the filing date of this report, does not believe that it is probable that it will be asked to do so. The par value of the outstanding consolidated obligations of the FHLBanks was $1.2 trillion at June 30, 2025, and December 31, 2024.

For further information and discussion of the Bank's joint and several liability for FHLBank consolidated obligations, see "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations – Financial Condition" and "Item 1. Financial Statements – Note 12 – Commitments and Contingencies."

**Advances-Related Products.** The advances-related products consist of advances and other credit products. The following table presents the advances portfolio by product type at June 30, 2025, and December 31, 2024.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
|<br>(Dollars in millions) | **Par Value** | **Percentage of Total Par Value** | **Par Value** | **Percentage of Total Par Value** |
| Adjustable – Secured Overnight Financing Rate (SOFR) | $3455 | 9% | $4455 | 10% |
| Adjustable – SOFR, callable at borrower's option | 3200 | 8 | 2400 | 5 |
| Subtotal adjustable rate advances | 6655 | 17 | 6855 | 15 |
| Fixed | 5303 | 13 | 5711 | 12 |
| Fixed – amortizing | 27 |  | 33 |  |
| Fixed – with PPS<sup>(1)</sup> | 87 |  | 142 |  |
| Fixed – with FPS<sup>(1)</sup> | 16815 | 42 | 24563 | 54 |
| Fixed – callable at borrower's option with FPS<sup>(1)</sup> | 275 | 1 | 310 | 1 |
| Fixed – putable at Bank's option with FPS<sup>(1)</sup> | 5608 | 14 | 4560 | 10 |
| Subtotal fixed rate advances | 28115 | 70 | 35319 | 77 |
| Daily variable rate | 5115 | 13 | 3644 | 8 |
| Total par value | $39885 | 100% | $45818 | 100% |

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(1)Partial prepayment symmetry (PPS) and full prepayment symmetry (FPS) are product features under which the Bank may charge the borrower a prepayment fee or pay the borrower a prepayment credit, depending on certain circumstances, such as movements in interest rates, when the advance is prepaid. In November 2018, the Bank discontinued offering advances with PPS, and any prepayment credit on an advance with PPS would be limited to the lesser of 10% of the par value of the advance or the gain recognized on the termination of the associated interest rate swap, which may also include a similar contractual gain limitation.

**Mortgage-Related Products.** The mortgage-related products consist of MBS investments and mortgage loans acquired through the Mortgage Partnership Finance<sup>®</sup> (MPF<sup>®</sup>) Program ("Mortgage Partnership Finance" and "MPF" are registered trademarks of the FHLBank of Chicago).

*MBS Investments –* The Bank's MBS portfolio was $15.4 billion and $15.3 billion at June 30, 2025, and December 31, 2024, respectively. During the first six months of 2025, the Bank's MBS portfolio increased primarily because of a $397 million increase in valuation adjustments for hedging activities and $152 million in purchases, including $52 million settling in the third quarter of 2025, partially offset by $393 million in principal repayments and an $11 million decrease in the fair values of MBS investments classified as AFS.

*Mortgage Loans –* Mortgage loan balances were $666 million at June 30, 2025, a decrease of $27 million from $693 million at December 31, 2024. Average mortgage loans were $680 million for the first six months of 2025, a decrease of $62 million from $742 million for the first six months of 2024.

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For more information on the Bank's management of interest rate risk and market risk related to mortgage-related products, see "Management's Discussion and Analysis of Financial Condition and Results of Operations – Risk Management – Market Risk."

**Liquidity and Capital Resources**

The Bank's financial strategies are designed to enable the Bank to expand and contract its balance sheet as membership composition and member credit needs change. The Bank's liquidity and capital resources are designed to support its financial strategies. The Bank's primary source of liquidity is its access to the debt capital markets through consolidated obligation issuance which is described in "Item 1. Business – Funding Sources" in the Bank's 2024 Form 10-K. The Bank's status as a GSE is critical to maintaining its access to the capital markets. Although consolidated obligations are backed only by the financial resources of the FHLBanks and are not guaranteed by the U.S. government, the capital markets have traditionally treated the FHLBanks' consolidated obligations as comparable to federal agency debt, providing the FHLBanks with access to funding at relatively favorable rates. The maintenance of the Bank's capital resources is governed by its capital plan.

***Liquidity***

The Bank seeks to maintain the liquidity necessary to repay maturing consolidated obligations for which it is the primary obligor, meet other obligations and commitments, meet expected and unexpected member credit demands, and may be used for investment opportunities. The Bank monitors its financial position in order to meet these objectives. For information related to the Bank's liquidity and contingency funding plans, including management of operational, refinancing, and contingent risks, see "Item 7. Management's Discussion and Analysis of Results of Operations and Financial Condition – Risk Management – Liquidity Risk" in the Bank's 2024 Form 10-K.

As of June 30, 2025, and December 31, 2024, the Bank held total sources of funds in an amount that would have allowed the Bank to meet its liquidity needs and renew maturing advances without issuing new consolidated obligations for over 10 days, in accordance with the Finance Agency's guidance. In addition, the Bank's funding gap positions as of June 30, 2025, and December 31, 2024, were within the tolerance levels provided by the Finance Agency's guidelines. At June 30, 2025, the Bank had $400 million in commitments to issue consolidated obligations. The Bank had no commitments to issue consolidated obligations at December 31, 2024.

For more information, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Liquidity" and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Risk Management – Liquidity Risk" in the Bank's 2024 Form 10-K.

In addition, in the ordinary course of business, the Bank engages in financial transactions that, in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP), are not recorded on the Bank's Statements of Condition or may be recorded on the Bank's Statements of Condition in amounts that are different from the full contract or notional amount of the transactions. For example, the Bank routinely enters into commitments to extend advances and issues standby letters of credit. These commitments and standby letters of credit may represent future cash requirements of the Bank, although the standby letters of credit usually expire without being drawn upon. Standby letters of credit are subject to the same underwriting and collateral requirements as advances made by the Bank. At June 30, 2025, and December 31, 2024, the Bank had $19.8 billion and $19.5 billion in standby letters of credit outstanding, respectively. The Bank had no commitments to fund advances at June 30, 2025, compared to $5 million in commitments to fund advances at December 31, 2024.

For additional information, see "Item 8. Financial Statements and Supplementary Data – Note 12 – Commitments and Contingencies."

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***Capital***

There have been no significant changes to the provisions of the Bank's capital plan since the Bank's 2024 Form 10-K. As noted in the 10-K, the Bank's capital plan was amended, but no determination has been made regarding the establishment of subclasses of stock at this time and without further action by the Board, there is no impact on member stock holdings, dividend rates or stock purchase requirements resulting from the amendments to the capital plan.

**Risk Management**

The Bank has an integrated corporate governance and internal control framework designed to support effective management of the Bank's business activities and the risks inherent in these activities. As part of this framework, the Board has adopted a Risk Governance Policy that outlines the key roles and responsibilities of the Board and management and sets forth how the Bank is organized to achieve its risk management objectives, including the implementation of the Bank's strategic objectives, risk management strategies, corporate governance and standards of conduct. The policy also establishes an independent risk oversight function to identify, assess, measure, monitor, and report on the enterprise risk profile in relation to its risk appetite and risk management capabilities of the Bank. For more information, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Risk Management" in the Bank's 2024 Form 10-K.

**Credit Ratings.** As discussed in the Bank's 2024 Form 10-K, because of the FHLBanks' GSE status, the credit ratings of the FHLBank System and the FHLBanks are generally constrained by the long-term sovereign credit rating of the United States. On May 19, 2025, Moody's Ratings (Moody's) downgraded the long-term senior unsecured debt ratings of the FHLBank System to Aa1 from Aaa. The rating action reflects the recent downgrade by Moody's of the U.S. government's long-term issuer and senior unsecured ratings to Aa1 with a stable outlook from Aaa with a negative outlook. Rating agency actions may adversely affect the Bank's cost of funds and the FHLBanks' ability to issue consolidated obligations on acceptable terms, which may impact the Bank's overall liquidity. The downgrade by Moody's did not impact any current obligations of the Bank, nor did it have an impact on the Bank's cost of funding, access to liquidity, or financial condition or results of operations.

**Advances.** The Bank manages the credit risk of advances and other credit products by setting the credit and collateral terms available to individual members and housing associates based on their creditworthiness and on the quality and value of the assets they pledge as collateral. Pursuant to the Bank's lending agreements with its borrowers, the Bank limits extensions of credit to individual borrowers to a percentage of the market value or unpaid principal balance of the borrower's pledged collateral, known as the borrowing capacity, which the Bank can change from time to time. The borrowing capacity percentage varies according to several factors, including the charter type of the institution, the collateral type, the value assigned to the collateral, the results of the Bank's collateral field review of the borrower's collateral, the pledging method used for loan collateral (specific identification or blanket lien), the amount of loan data provided (detailed or summary reporting), the data reporting frequency (monthly or quarterly), the borrower's financial strength and condition, and any institution-specific collateral risks. Under the terms of the Bank's lending agreements, the aggregate borrowing capacity of a borrower's pledged eligible collateral must meet or exceed the total amount of the borrower's outstanding advances, other extensions of credit, and certain other borrower obligations and liabilities.

For more information on the Bank's management of credit risk on its advances, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Risk Management – Credit Risk – Advances" in the Bank's 2024 Form 10-K.

The Bank has a high concentration of advances with certain institutions and their affiliates. The percentage of the Bank's advances outstanding to its top 10 borrowers and their affiliates decreased to 61%, or $24.5 billion, at June 30, 2025, compared to 64%, or $29.3 billion, at December 31, 2024.

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Several of the Bank's top 10 advance borrowers and their affiliates at the end of 2022 were involved in voluntary liquidation, or Federal Deposit Insurance Corporation receivership during 2023, or have been acquired by nonmember institutions. As of June 30, 2025, and December 31, 2024, nonmembers accounted for $4.7 billion, or 12%, and $12.1 billion, or 27%, of total advances outstanding, respectively. Nonmembers, excluding housing associates in the Bank's district, accounted for $43 million, or 8%, and $129 million, or 13%, of the Bank's interest income from advances for the three and six months ended June 30, 2025, respectively. Nonmembers accounted for $223 million, or 38%, and $482 million, or 41%, of the Bank's interest income from advances for the three and six months ended June 30, 2024, respectively. Because these borrowers are nonmembers, when these advances either mature or are prepaid they cannot be replaced by these borrowers, which will adversely affect the Bank's level of advance balances and total interest income from advances in the future. As a result of the inability of nonmembers to seek new advances from the Bank, the Bank's level of advances and the associated net interest income in the future will be subject to a number of factors including, but not limited to, a member's ability to generate new business, seek new advances, or pursue consolidation opportunities within the banking industry, and the economy in general. For further information, see "Item 1. Financial Statements – Note 4 – Advances – Concentration Risk."

The following tables present a summary of the status of the credit outstanding and overall collateral borrowing capacity of the Bank's borrowers as of June 30, 2025, and December 31, 2024.

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| | | | |
|:---|:---|:---|:---|
| **Borrower Credit Outstanding and Collateral Borrowing Capacity** <br>**by Unused Borrowing Capacity** | **Borrower Credit Outstanding and Collateral Borrowing Capacity** <br>**by Unused Borrowing Capacity** | **Borrower Credit Outstanding and Collateral Borrowing Capacity** <br>**by Unused Borrowing Capacity** | **Borrower Credit Outstanding and Collateral Borrowing Capacity** <br>**by Unused Borrowing Capacity** |
| **June 30, 2025** | | | |
| (Dollars in millions)<br>**Unused Borrowing Capacity** | **Number of Borrowers with Credit Outstanding** | **Credit**<br>**Outstanding**<sup>(1)</sup> | **Collateral**<br>**Borrowing**<br>**Capacity**<sup>(2)</sup> |
| 0% – 10% | 8 | $5593 | $5683 |
| 11% – 25% | 8 | 4934 | 6588 |
| 26% – 50% | 18 | 10096 | 15726 |
| More than 50% | 166 | 39071 | 178153 |
| Total | 200 | $59694 | $206150 |

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|:---|:---|:---|:---|
| **December 31, 2024**<br>(Dollars in millions)<br>**Unused Borrowing Capacity** |<br>**Number of Borrowers with Credit Outstanding** |<br>**Credit**<br>**Outstanding**<sup>(1)</sup> |<br>**Collateral**<br>**Borrowing**<br>**Capacity**<sup>(2)</sup> |
| 0% – 10% | 10 | $5719 | $5877 |
| 11% – 25% | 6 | 10362 | 12103 |
| 26% – 50% | 23 | 19877 | 35439 |
| More than 50% | 162 | 29396 | 137135 |
| Total | 201 | $65354 | $190554 |

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(1)Includes advances, letters of credit, the market value of swaps, estimated prepayment fees for certain borrowers, and the credit enhancement obligation on MPF loans.

(2)Collateral borrowing capacity does not represent any commitment to lend on the part of the Bank.

Based on the Bank's credit and collateral policies, its credit analysis of borrowers' financial condition and the collateral pledged as security for advances, the Bank expects to collect all amounts due according to the contractual terms of the advances. Therefore, no allowance for credit losses on advances is deemed necessary by the Bank as of June 30, 2025. The Bank has never experienced any credit losses on advances. For information related to the Bank's collateral requirements and loan pledge practices, including specific identification and delivery criteria, see "Item 7. Management's Discussion and Analysis of Results of Operations and Financial Condition – Risk Management – Credit Risk" in the Bank's 2024 Form 10-K.

As of June 30, 2025, of the loan collateral pledged to the Bank, 16% was pledged by 22 institutions by specific identification, 47% was pledged by 117 institutions under a blanket lien with detailed reporting, and 37% was

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pledged by 134 institutions under a blanket lien with summary reporting. For each institution that pledges loan collateral, the Bank conducts loan collateral field reviews on a one-, two-, or three-year cycle, depending on the risk profile of the institution and the types of collateral pledged.

As of June 30, 2025, the Bank's maximum borrowing capacities as a percentage of the assigned market value of mortgage loan collateral pledged under a blanket lien with detailed reporting were as follows: 84% for first lien residential mortgage loans, 81% for multifamily mortgage loans, 81% for commercial mortgage loans, and 69% for second lien residential mortgage loans. The maximum borrowing capacity for small business, small agribusiness, and small farm loans was 50% of the unpaid principal balance, although most of these loans are pledged under blanket lien with summary reporting, with a maximum borrowing capacity of 25%. The highest borrowing capacities are available to institutions that pledge under a blanket lien with detailed reporting because the detailed loan information allows the Bank to assess the value of the collateral more precisely and because additional collateral is pledged under the blanket lien that may not receive borrowing capacity but may be liquidated to repay advances in the event of default. The Bank may review and change the maximum borrowing capacity for any type of loan collateral at any time.

The following table presents the mortgage loan collateral pledged at June 30, 2025, and December 31, 2024.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Composition of Loan Collateral Pledged**  | **Composition of Loan Collateral Pledged**  | **Composition of Loan Collateral Pledged**  | **Composition of Loan Collateral Pledged**  | **Composition of Loan Collateral Pledged**  |
| (In millions) | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| **Loan Type** | **Unpaid Principal<br>Balance** | **Borrowing<br>Capacity** | **Unpaid Principal<br>Balance** | **Borrowing<br>Capacity** |
| First lien residential mortgage loans | $141859 | $95378 | $130538 | $89568 |
| Second lien residential mortgage loans and home equity lines of credit | 14671 | 6938 | 13183 | 6421 |
| Multifamily mortgage loans | 34692 | 22742 | 35095 | 22245 |
| Commercial mortgage loans | 77377 | 49677 | 71907 | 45632 |
| Loan participations<sup>(1)</sup> | 1323 | 480 | 963 | 343 |
| Small business, small farm, and small agribusiness loans | 1575 | 387 | 1443 | 356 |
| Total | $271497 | $175602 | $253129 | $164565 |

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(1)The unpaid principal balance for loan participations is 100% of the outstanding loan amount. The borrowing capacity for loan participations is based on the participated amount pledged to the Bank.

The Bank holds a security interest in subprime residential mortgage loans pledged as collateral by members and by nonmembers. Subprime loans are defined as loans with a borrower FICO score of less than or equal to 660 at origination, or if the original FICO score is not available, as loans with a current borrower FICO score of less than or equal to 660. At June 30, 2025, and December 31, 2024, the unpaid principal balance of these loans totaled $5.5 billion. The Bank reviews and assigns borrowing capacities to subprime mortgage loans as it does for all other types of loan collateral, taking into account the known credit attributes in the pricing of the loans. All advances, including those made to borrowers pledging subprime mortgage loans, are required to be fully collateralized. The Bank limits the amount of borrowing capacity that may be supported by subprime collateral. At June 30, 2025, and December 31, 2024, the borrowing capacity of these loans totaled $3.8 billion and $3.9 billion, respectively.

**Investments.** The Bank has adopted credit policies and exposure limits for investments that promote risk limitation, diversification, and liquidity. These policies determine eligible counterparties and restrict the amounts and terms of the Bank's investments with any given counterparty according to the Bank's own capital position as well as the capital and creditworthiness of the counterparty.

For more information on the Bank's management of credit risk on its investments, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Risk Management – Credit Risk – Investments" in the Bank's 2024 Form 10-K.

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The following table presents the Bank's investment credit exposure at June 30, 2025, based on the lowest of the long-term credit ratings provided by Moody's, S&P, or Fitch Ratings (Fitch).

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Carrying Value** | **Carrying Value** | **Carrying Value** | **Carrying Value** | **Carrying Value** | **Carrying Value** |
| (In millions) | **Credit Rating**<sup>(1)</sup> | **Credit Rating**<sup>(1)</sup> | **Credit Rating**<sup>(1)</sup> | **Credit Rating**<sup>(1)</sup> |  |  |
| **Investment Type** | **AA** | **A** | **BBB** | **Below Investment Grade** | **Unrated** | **Total** |
| U.S. obligations – Treasury securities | $6337 | $— | $— | $— | $— | $6337 |
| State housing agency obligations | 12 |  |  |  |  | 12 |
| MBS: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other U.S. obligations – single-family | 22 |  |  |  |  | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;MBS – GSEs: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GSEs – single-family<sup>(2)</sup> | 444 |  | 3 | 1 |  | 448 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GSEs – multifamily | 13968 |  |  |  |  | 13968 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total MBS – GSEs | 14412 |  | 3 | 1 |  | 14416 |
| &nbsp;&nbsp;&nbsp;&nbsp;PLRMBS | 12 | 20 | 25 | 487 | 466 | 1010 |
| Total MBS | 14446 | 20 | 28 | 488 | 466 | 15448 |
| Total securities | 20795 | 20 | 28 | 488 | 466 | 21797 |
| Interest-bearing deposits | 1042 | 2541 |  |  |  | 3583 |
| Securities purchased under agreements to resell<sup>(3)</sup> | 9250 | 500 |  |  | 2000 | 11750 |
| Federal funds sold<sup>(4)</sup> | 2485 | 2500 |  |  |  | 4985 |
| Total investments | $33572 | $5561 | $28 | $488 | $2466 | $42115 |

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(1)Credit ratings grades of BB and lower are considered below investment grade.

(2)The Bank has one security guaranteed by Fannie Mae but rated below investment grade at June 30, 2025, because of extraordinary expenses incurred during bankruptcy of the security's sponsor in 2008.

(3)Unrated counterparties for these investments were broker-dealers, qualifying for limited trading programs authorized by the Bank.

(4)Includes unsecured investment credit exposure to a member.

The following table presents the unsecured credit exposure with counterparties by investment type at June 30, 2025, and December 31, 2024.

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| | | |
|:---|:---|:---|
| | **Carrying Value**<sup>(1)</sup> | **Carrying Value**<sup>(1)</sup> |
|<br>(In millions) | **June 30, 2025** | **December 31, 2024** |
| Interest-bearing deposits | $3583 | $3765 |
| Federal funds sold | 4985 | 1645 |
| Total | $8568 | $5410 |

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(1)Excludes unsecured investment credit exposure to U.S. government agencies and instrumentalities, government-sponsored enterprises, and supranational entities and does not include related accrued interest as of June 30, 2025, and December 31, 2024.

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The following table presents the credit ratings of the unsecured investment credit exposures presented by the domicile of the counterparty or the domicile of the counterparty's parent for U.S. branches and agency offices of foreign commercial banks, based on the lowest of the credit ratings provided by Moody's, S&P, or Fitch. This table does not reflect the foreign sovereign government's credit rating. At June 30, 2025, 58% of the Bank's total unsecured investments were to U.S. branches and agency offices of foreign commercial banks. At June 30, 2025, all of the unsecured investments held by the Bank had overnight maturities.

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| | | | |
|:---|:---|:---|:---|
| | **Carrying Value**<sup>(1)</sup> | **Carrying Value**<sup>(1)</sup> | **Carrying Value**<sup>(1)</sup> |
| (In millions) | **Credit Rating**<sup>(2)</sup> | **Credit Rating**<sup>(2)</sup> |  |
| **Domicile of Counterparty** | **AA** | **A** | **Total** |
| Domestic | $692 | $2541 | $3233 |
| U.S. subsidiaries of foreign commercial banks | 350 |  | 350 |
| Total domestic and U.S. subsidiaries of foreign commercial banks | 1042 | 2541 | 3583 |
| U.S. branches and agency offices of foreign commercial banks: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Australia | 495 |  | 495 |
| &nbsp;&nbsp;&nbsp;&nbsp;Canada | 100 | 400 | 500 |
| &nbsp;&nbsp;&nbsp;&nbsp;Finland | 1490 |  | 1490 |
| &nbsp;&nbsp;&nbsp;&nbsp;France |  | 100 | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;Germany |  | 250 | 250 |
| &nbsp;&nbsp;&nbsp;&nbsp;Japan |  | 1000 | 1000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Netherlands |  | 650 | 650 |
| &nbsp;&nbsp;&nbsp;&nbsp;Singapore | 100 |  | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sweden | 300 | 100 | 400 |
| Total U.S. branches and agency offices of foreign commercial banks | 2485 | 2500 | 4985 |
| Total unsecured credit exposure | $3527 | $5041 | $8568 |

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(1)Excludes unsecured investment credit exposure to U.S. government agencies and instrumentalities, government-sponsored enterprises, and supranational entities and does not include related accrued interest as of June 30, 2025.

(2)Does not reflect changes in ratings, outlook, or watch status occurring after June 30, 2025. These ratings represent the lowest rating available for each unsecured investment owned by the Bank, based on the ratings provided by Fitch, Moody's, or S&P. The Bank's internal rating may differ from this rating.

The Bank's MBS investments include PLRMBS and agency residential MBS, which are backed by Fannie Mae, Freddie Mac, or Ginnie Mae. Some of the PLRMBS were issued by or purchased from members, former members, or their affiliates. The Bank has investment credit limits and terms for these investments that do not differ for members and nonmembers. Regulatory policy limits total MBS investments, to three times the Bank's regulatory capital at the time of purchase. At June 30, 2025, the Bank's MBS portfolio was 216% of Bank regulatory capital (as determined in accordance with regulations governing the operations of the FHLBanks).

The Bank executes all MBS investments without preference to the status of the counterparty or the issuer of the investment as a nonmember, member, or affiliate of a member.

As of June 30, 2025, the Bank's investment in MBS had gross unrealized losses totaling $46 million, $23 million of which were related to PLRMBS. These gross unrealized losses related to PLRMBS were primarily attributable to market expectations of the credit performance of loan collateral underlying these securities, which caused these assets to be valued at discounts to their amortized cost.

For its agency MBS, the Bank expects to recover the entire amortized cost basis of these securities because the Bank determined that the strength of the issuers' guarantees through direct obligations or support from the U.S. government is sufficient to protect the Bank from losses. As a result, the Bank determined that, as of June 30, 2025, all of the gross unrealized losses on its agency MBS are temporary.

If conditions in the housing and mortgage markets and general business and economic conditions deteriorate, the fair value of MBS may decline further, and the Bank may experience additional credit losses on PLRMBS in future

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periods. Additional credit losses could adversely affect the Bank's earnings and retained earnings and its ability to pay dividends and repurchase capital stock. The Bank cannot predict whether it will be required to record an allowance for credit losses on its PLRMBS in the future.

**Derivative Counterparties.** Interest rate exchange agreements may be either uncleared or cleared at a clearing house.

*Uncleared Derivatives –* The Bank has adopted credit policies and exposure limits for uncleared derivatives counterparty credit exposure. The Bank does not anticipate any credit losses on its uncleared derivative transactions with counterparties as of June 30, 2025. Additional information related to the Bank's uncleared derivative transaction risk mitigation activities and related uncleared margin rules are included in "Item 8. Financial Statements and Supplementary Data – Note 13 – Derivatives and Hedging Activities" in the Bank's 2024 Form 10-K.

*Cleared Derivatives –* In a cleared derivatives transaction, the Bank is subject to nonperformance by the clearing house and its futures commission merchant or clearing agent. Based on the master netting arrangements, its credit analyses, and the margin requirements in place with each counterparty, the Bank does not expect to incur any credit losses on its derivative agreements. For information related to the Bank's credit risk exposure on cleared derivative instruments, including margining practices and counterparty risk management, see "Item 7. Management's Discussion and Analysis of Results of Operations and Financial Condition – Risk Management – Credit Risk" in the Bank's 2024 Form 10-K.

The following table presents the Bank's credit exposure to its derivative dealer counterparties at June 30, 2025.

---

| | | | | |
|:---|:---|:---|:---|:---|
| (In millions)<br>**Counterparty Credit Rating**<sup>(1)</sup> | **Notional Amount** | **Net Fair Value of Derivatives Before Collateral** | **Non-cash Collateral Pledged**<br>**to/ (from) Counterparty** | **Net Credit<br>Exposure to Counterparties** |
| Liability positions with credit exposure: |  |  |  |  |
| &nbsp;&nbsp;Cleared derivatives<sup>(2)</sup> | $55083 | $(21) | $587 | $566 |
| Total derivative positions with credit exposure to nonmember counterparties | $55083 | $(21) | $587 | $566 |
| Derivative positions without credit exposure | 34958 |  |  |  |
| Total notional | $90041 |  |  |  |

---

(1)The credit ratings grades used by the Bank are based on the lower of Moody's or S&P ratings.

(2)Represents derivative transactions cleared with LCH Ltd, the Bank's clearing house, which was rated AA- with a stable outlook by S&P.

**Critical Accounting Estimates** 

The preparation of financial statements in accordance with U.S. GAAP requires management to make a number of judgments, estimates, and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, if applicable, and the reported amounts of income, expenses, gains, and losses during the reporting period. Changes in these judgments, estimates, and assumptions could potentially affect the Bank's financial position and results of operations significantly. Although the Bank believes these judgments, estimates, and assumptions to be reasonably accurate, actual results may differ.

In the Bank's 2024 Form 10-K, the Bank identified accounting for derivatives and hedging activities as a critical accounting estimate. There have been no significant changes in the judgments and assumptions made during the first six months of 2025 in applying the Bank's critical accounting estimate. These policies and the judgments, estimates, and assumptions are also described in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Estimates" and "Item 8. Financial Statements and Supplementary Data – Note 1 – Summary of Significant Accounting Policies" in the Bank's 2024 Form 10-K and in "Item 8. Financial Statements and Supplementary Data – Note 11 – Fair Value."

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**Recently Issued Accounting Guidance and Interpretations** 

See "Item 1. Financial Statements – Note 2 – Recently Issued and Adopted Accounting Guidance" for a discussion of recently issued accounting standards and interpretations.

**Legislative and Regulatory Developments**

The FHLBanks are subject to various legal and regulatory requirements and priorities. Certain actions by the current federal executive administration are changing the regulatory environment including regulatory priorities and areas of focus such as deregulation, which have affected, and likely will continue to affect, certain aspects of the Bank's business operations, and could impact the Bank's results of operations and reputation.

Beginning in the second quarter of 2025, the Finance Agency: (a) modified several advisory bulletins applicable to the Bank, including with respect to expectations related to diversity practices with service providers, (b) rescinded guidance and other requirements relating to fair lending and fair housing reporting and unfair or deceptive acts or practices compliance, and issued a proposal repealing the Fair Lending, Fair Housing, and Equitable Housing Finance Plans regulation, and (c) designated the number of directorships for the Bank starting January 1, 2026, which will reduce the number of director seats for the Bank from thirteen (13) to nine (9), as further discussed in "Part II. Item 5. Other Information" of this Form 10-Q.

Considering the changes in the regulatory environment, there is uncertainty with respect to the ultimate nature and result of future regulatory actions and their ultimate impact on the Bank and the FHLBank System. For further discussion of related risks, see "Item 1A – Risk Factors – Regulatory Risks" in the Bank's 2024 Form 10-K.

**ITEM 3.**&nbsp;&nbsp;&nbsp;&nbsp;**QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

*Market Value of Capital Sensitivity* – The Bank uses market value of capital sensitivity (the interest rate sensitivity of the net fair value of all assets, liabilities, and interest rate exchange agreements) as an important measure of the Bank's exposure to changes in interest rates. The Bank's measured market value of capital sensitivity was within the limits as of June 30, 2025.

The following table presents the sensitivity of the market value of capital (the market value of all of the Bank's assets, liabilities, and associated interest rate exchange agreements, with mortgage assets valued using market spreads implied by current market prices) to changes in interest rates. The table presents the estimated percentage change in the Bank's market value of capital that would be expected to result from changes in interest rates under different interest rate scenarios, using market spread assumptions as of June 30, 2025, and December 31, 2024.

---

| | | | |
|:---|:---|:---|:---|
| **Market Value of Capital Sensitivity <br>Estimated Percentage Change in Market Value of Bank Capital <br>for Various Changes in Interest Rates** | **Market Value of Capital Sensitivity <br>Estimated Percentage Change in Market Value of Bank Capital <br>for Various Changes in Interest Rates** | **Market Value of Capital Sensitivity <br>Estimated Percentage Change in Market Value of Bank Capital <br>for Various Changes in Interest Rates** | **Market Value of Capital Sensitivity <br>Estimated Percentage Change in Market Value of Bank Capital <br>for Various Changes in Interest Rates** |
| **Interest Rate Scenario**<sup>(1)</sup> | **June 30, 2025** | | **December 31, 2024** |
| +200 basis-point change | +0.5 | % | –2.4 |
| +100 basis-point change | +0.3 |  | –1.2 |
| –100 basis-point change<sup>(2)</sup> | –0.1 |  | +1.2 |
| –200 basis-point change<sup>(2)</sup> | +0.1 |  | +2.3 |

---

(1)Instantaneous change from actual rates at dates indicated.

(2)Interest rates for each maturity are limited to non-negative rates.

The Bank's estimates of the sensitivity of the market value of capital to changes in interest rates as of June 30, 2025, have decreased as compared to the estimates as of December 31, 2024. The driver for the change is the implementation of a third-party prepayment model for the Bank's agency multifamily MBS. Compared to December 31, 2024, interest rates as of June 30, 2025, have decreased 4 basis points for the one-month Treasury

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bill, decreased 60 basis points for the five-year Treasury note, and decreased 35 basis points for the 10-year Treasury note.

The Bank's Risk Management Policy provides guidelines for the payment of dividends and the repurchase of excess stock based on the ratio of the Bank's estimated market value of total capital to par value of capital stock. The ratio of the Bank's estimated market value of total capital to par value of capital stock was 272% as of June 30, 2025.

*Adjusted Net Interest Income as a Percent of Capital* – The Bank assesses the impact of interest rate changes on its projected earnings by monitoring its adjusted net interest income as a percent of capital. With the indicated interest rate shifts, the adjusted net interest income on capital for the 12-month horizon is projected to remain within the limit of -210 basis-points. For more information on adjusted net interest income and adjusted net interest income as a percent of capital, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Risk Management – Market Risk" in the Bank's 2024 Form 10-K.

*Duration Gap* – The Bank monitors the duration gap analysis and does not have a risk limit. The driver for the change in the duration gap is due to the implementation of a third-party prepayment model for the Bank's agency multifamily MBS. The following table presents the Bank's duration gap for its assets and liabilities at June 30, 2025, and December 31, 2024.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Duration Gap Analysis** | **Duration Gap Analysis** | **Duration Gap Analysis** | **Duration Gap Analysis** | **Duration Gap Analysis** |
| | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| | **Amount<br>(In millions)** | **Duration Gap**<sup>(1)</sup><br>**(In months)** | **Amount<br>(In millions)** | **Duration Gap**<sup>(1)</sup><br>**(In months)**  |
| Assets | $83146 | 0.7 | $81735 | 2.1 |
| Liabilities | 75960 | 1.0 | 74731 | 0.9 |
| Net | $7186 | (0.3) | $7004 | 1.2 |

---

(1)Duration gap values include the impact of interest rate exchange agreements.

For more information on quantitative and qualitative disclosures about the Bank's market risk, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Risk Management – Market Risk" in the Bank's 2024 Form 10-K.

**ITEM 4.**&nbsp;&nbsp;&nbsp;&nbsp;**CONTROLS AND PROCEDURES** 

**Disclosure Controls and Procedures**

The senior management of the Federal Home Loan Bank of San Francisco (Bank) is responsible for establishing and maintaining a system of disclosure controls and procedures designed to ensure that information required to be disclosed by the Bank in the reports filed or submitted under the Securities Exchange Act of 1934 (1934 Act) is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. The Bank's disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Bank in the reports that it files or submits under the 1934 Act is accumulated and communicated to the Bank's management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. In designing and evaluating the Bank's disclosure controls and procedures, the Bank's management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and the Bank's management necessarily is required to apply its judgment in evaluating the cost-benefit relationship of controls and procedures.

Management of the Bank has evaluated the effectiveness of the design and operation of its disclosure controls and procedures with the participation of the president and chief executive officer and executive vice president and chief financial officer as of the end of the period covered by this report. Based on that evaluation, the Bank's president

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and chief executive officer and executive vice president and chief financial officer have concluded that the Bank's disclosure controls and procedures were effective at a reasonable assurance level as of the end of the period covered by this report.

**Internal Control Over Financial Reporting**

During the three months ended June 30, 2025, there were no changes in the Bank's internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Bank's internal control over financial reporting.

**Consolidated Obligations**

The Bank's disclosure controls and procedures include controls and procedures for accumulating and communicating information in compliance with the Bank's disclosure and financial reporting requirements relating to the joint and several liability for the consolidated obligations of the FHLBanks. Because the FHLBanks are independently managed and operated, the Bank's management relies on information that is provided or disseminated by the Federal Housing Finance Agency (Finance Agency), the Office of Finance, and the other FHLBanks, as well as on published FHLBank credit ratings, in determining whether the joint and several liability regulation is reasonably likely to result in a direct obligation for the Bank or whether it is reasonably possible that the Bank will accrue a direct liability.

The Bank's management also relies on the operation of the joint and several liability regulation. The joint and several liability regulation requires that each FHLBank file with the Finance Agency a quarterly certification that it will remain capable of making full and timely payment of all of its current obligations, including direct obligations, coming due during the next quarter. In addition, if an FHLBank cannot make such a certification or if it projects that it may be unable to meet its current obligations during the next quarter on a timely basis, it must file a notice with the Finance Agency. Under the joint and several liability regulation, the Finance Agency may order any FHLBank to make principal and interest payments on any consolidated obligations of any other FHLBank, or allocate the outstanding liability of an FHLBank among all remaining FHLBanks on a pro rata basis in proportion to each FHLBank's participation in all consolidated obligations outstanding or on any other basis.

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**PART II. OTHER INFORMATION**

**ITEM 1.**&nbsp;&nbsp;&nbsp;&nbsp;**LEGAL PROCEEDINGS**

The Federal Home Loan Bank of San Francisco (Bank) may be subject to various legal proceedings arising in the normal course of business.

After consultation with legal counsel, the Bank is not aware of any legal proceedings that are expected to have a material effect on its financial condition or results of operations or that are otherwise material to the Bank.

**ITEM 1A.&nbsp;&nbsp;&nbsp;&nbsp;RISK FACTORS** 

The Bank is subject to a number of risks as set forth in "Item 1A – Risk Factors" in the Bank's 2024 Form 10-K. Reference is made to "Quarterly Overview", as well as other sections, of "Item 2. Management Discussion and Analysis of Financial Condition and Results of Operations" of this Form 10-Q regarding other potential risks and uncertainties facing the Bank.

**ITEM 2.&nbsp;&nbsp;&nbsp;&nbsp;UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

Not applicable.

**ITEM 3.&nbsp;&nbsp;&nbsp;&nbsp;DEFAULTS UPON SENIOR SECURITIES**

None.

**ITEM 4.&nbsp;&nbsp;&nbsp;&nbsp;MINE SAFETY DISCLOSURES**

Not applicable.

**ITEM 5.&nbsp;&nbsp;&nbsp;&nbsp;OTHER INFORMATION**

Prior to each year's election of directors for the Bank's board of directors (Board), the director of the Finance Agency (Finance Agency), pursuant to federal statutory authority, designates the number of directorships for the following year for each state in the Bank's district, including the seats up for election. In its order dated July 2, 2025 (the Order), the Finance Agency's director reduced the overall size of the Bank's Board from thirteen (13) to nine (9) directors.

The new composition of the Board effective January 1, 2026, will be: three (3) California member directors, one (1) Arizona member director, one (1) Nevada member director, and four (4) independent directors. Pursuant to the Order, the following four (4) directorship positions will be eliminated as of December 31, 2025: one California directorship with a current term ending December 31, 2025; one California directorship with a current term ending December 31, 2027; one independent directorship with a current term ending December 31, 2027; and one independent directorship with a current term ending December 31, 2028. On July 29, 2025, in connection with the Order, the terms of the following directors were truncated to end December 31, 2025: 1) Ana E. Fonseca; 2) Lori R. Gay; and 3) Silvio Tavares. The California member directorship held by Marangal Domingo will expire on December 31, 2025, pursuant to its term. All other directorship terms remain the same.

Accordingly, in 2025 there will be an election for one (1) member director position representing the Bank's California members and a district-wide election for two (2) independent director positions, each with a four (4) year term beginning January 1, 2026.

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**ITEM 6.&nbsp;&nbsp;&nbsp;&nbsp;EXHIBITS**

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| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| <u>[3](q2202510qexhibit31bylaws.htm)[.1](q2202510qexhibit31bylaws.htm)</u> | Bylaws of the Federal Home Loan Bank of San Francisco, as amended and restated on July 25, 2025 |
| <u>[1](q22025ex101clogeneralrelea.htm)[0.1](q22025ex101clogeneralrelea.htm)</u> | General Release Agreement by and between the Federal Home Loan Bank of San Francisco and Anne Segrest McCulloch, dated May 9, 2025 |
| <u>[1](https://www.sec.gov/Archives/edgar/data/1316944/000131694425000117/exhibit101josephamatoemplo.htm)[0.2](https://www.sec.gov/Archives/edgar/data/1316944/000131694425000117/exhibit101josephamatoemplo.htm)</u> | Employment Agreement, by and between the Federal Home Loan Bank of San Francisco and Joseph E. Amato, dated June 2, 2025, incorporated by reference to Exhibit 10.1 to the Bank's Form 8-K filed with the Securities and Exchange Commission on June 5, 2025 (Commission File No. 000-51398) |
| <u>[1](q2202510qexhibit103eip.htm)[0.3](q2202510qexhibit103eip.htm)</u> | Executive Incentive Plan as Amended and Restated March 28, 2025 |
| <u>[31.1](q2202510qex311.htm)</u> | Certification of the Interim President and Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
| <u>[31.2](q2202510qex312.htm)</u> | Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
| <u>[32.1](q2202510qex321.htm)</u> | Certification of the Interim President and Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
| <u>[32.2](q2202510qex322.htm)</u> | Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
| 101.INS | Inline XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File - The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |

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**SIGNATURES**

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, thereunto duly authorized, on August 1, 2025.

---

| |
|:---|
| Federal Home Loan Bank of San Francisco |
| /S/ JOSEPH E. AMATO |
| **Joseph E. Amato<br>Interim President and Chief Executive Officer**<br>**(Principal executive officer)** |
| /S/ MICHAEL S. HENNESSY |
| **Michael S. Hennessy**<br>**Executive Vice President and Chief Financial Officer**<br>**(Principal financial officer)** |
| /S/ JENNIFER F. LIN |
| **Jennifer F. Lin**<br>**Senior Vice President and Controller**<br>**(Principal accounting officer)** |

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## Exhibit 3.1

**Exhibit 3.1**

BYLAWS

of the

FEDERAL HOME LOAN BANK OF SAN FRANCISCO

As Amended and Restated effective July 25, 2025

Page i

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CONTENTS

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| | | |
|:---|:---|:---|
| Article I | OFFICES | OFFICES |
|  | Sec. 1 | Principal Office |
|  | Sec. 2 | Other Offices |
| Article II | MEMBER MEETINGS | MEMBER MEETINGS |
|  | Sec. 1 | Meetings |
|  | Sec. 2 | Member Voting |
| Article III | BOARD OF DIRECTORS | BOARD OF DIRECTORS |
|  | Sec. 1 | Board Composition and Director Elections |
|  | Sec. 2 | Regular Meetings |
|  | Sec. 3 | Special Meetings |
|  | Sec. 4 | Quorum; Voting |
|  | Sec. 5 | Officers of the Board of Directors |
|  | Sec. 6 | Presiding Officers; Acting Officers |
|  | Sec. 7 | Removal of Officers of the Board of Directors |
|  | Sec. 8 | Removal of Directors |
|  | Sec. 9 | Order of Business; Minutes |
|  | Sec. 10 | Bank Policies and Plans |
|  | Sec. 11 | Action Without a Meeting |
|  | Sec. 12 | Vacancies |
|  | Sec. 13 | Director Compensation |
| Article IV | COMMITTEES OF THE BOARD OF DIRECTORS | COMMITTEES OF THE BOARD OF DIRECTORS |
|  | Sec. 1 | General Provisions |
|  | Sec. 2 | Audit Committee |
|  | Sec. 3 | Risk Committee |
|  | Sec. 4 | Governance and Compensation Committee(s) |
|  | Sec. 5 | Meetings |
| Article V | OFFICERS AND EMPLOYEES | OFFICERS AND EMPLOYEES |
|  | Sec. 1 | Officers |
|  | Sec. 2 | Employees |
|  | Sec. 3 | Compensation |
|  | Sec. 4 | Acting President |
| Article VI | CAPITAL STOCK | CAPITAL STOCK |
|  | Sec. 1 | Manner of Executing |
|  | Sec. 2 | Transfers |
|  | Sec. 3 | Dividends |
| Article VII | GENERAL PROVISIONS | GENERAL PROVISIONS |
|  | Sec. 1 | Budgets |
|  | Sec. 2 | Bonds and Insurance |

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| | | |
|:---|:---|:---|
| | Sec. 3 | Indemnification |
| | Sec. 4 | Limitation of Liability |
| | Sec. 5 | Reserved |
| | Sec. 6 | Operations; FHFA Approval |
| | Sec. 7 | Fiscal Year |
| | Sec. 8 | Amendment of Bylaws |
| | Sec. 9 | Corporate Seal |
| | Sec. 10 | Designation of Law for Corporate Governance and Indemnification Practices and Procedures |
| Article VIII | EMERGENCY BYLAWS | EMERGENCY BYLAWS |
|  | Sec. 1 | Emergency |
|  | Sec. 2 | Meetings |
|  | Sec. 3 | Quorum |
|  | Sec. 4 | Bylaws |
|  | Sec. 5 | Liability |
|  | Sec. 6 | Repeal or Change |

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Page iii

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**<u>FEDERAL HOME LOAN BANK OF SAN FRANCISCO</u>**

**BYLAWS**

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

**ARTICLE I**

**<u>Offices</u>**

<u>Section 1. Principal Office</u>: The principal office of the Federal Home Loan Bank of San Francisco ("Bank") is to be located in the City and County of San Francisco, State of California.

<u>Section 2. Other Offices</u>: In addition to its principal office, the Bank may maintain offices at any other place or places, as may be designated from time to time by the Board of Directors.

**ARTICLE II**

**<u>Member Meetings</u>**

<u>Section 1. Meetings</u>: Meetings of the members of the Bank shall be called upon the written request of the President of the Bank or any seven directors on the Board of Directors. The Board of Directors shall designate the date, time, and place for such meeting, to be held not less than fifteen days nor more than sixty days after such request. Should the Board of Directors fail to act for a period of thirty days after the request for such meeting, the Secretary of the Bank shall designate a date, time, and place. The Secretary of the Bank shall mail a notice of such meeting to each member of the Bank at its last known address as shown on the records of the Bank. Such notice shall be sent at least ten days before such meeting and shall contain a statement of the purpose and the time and place of the meeting. To the extent permitted by applicable law, such notice may instead be given by means of electronic transmission or posting and the Board of Directors may, in its sole discretion, determine that a meeting of members shall not be held at any place, but may instead be held solely by means of remote communication.

The chair of the Board of Directors, or in his or her absence the vice chair, or in the absence of both of these officers, the President of the Bank, shall preside at each meeting of the members. Minutes of each meeting of the members shall be prepared by the Secretary of the Bank and shall be approved by the Board of Directors.

<u>Section 2. Member Voting</u>: The members shall be entitled to vote in connection with the election of directors in accordance with the provisions of the Federal Home Loan Bank Act, as amended, the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended, (together, "Acts"), the rules and regulations of the Federal Housing Finance Agency ("FHFA") as in effect from time to time ("Rules and Regulations"), and the director election procedures as established by the Board of Directors in accordance with the requirements of the Acts and the Rules and Regulations. The members shall also be entitled to vote on such other matters as expressly provided for in the Acts and the Rules and Regulations, in accordance with the requirements of the Acts and the Rules and Regulations.

**ARTICLE III**

**<u>Board of Directors</u>**

<u>Section 1</u>. <u>Board Composition and Director Elections</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Number, Qualifications, and Eligibility</u>: The Board of Directors shall consist of thirteen directors or such other number of directors as established by the FHFA, from time to time, each of whom shall at all times meet the standards for eligibility set forth in the Acts and the Rules and Regulations. The directors

------

shall be nominated and elected in such manner and for such terms of office as provided by the Acts and the Rules and Regulations. Directors are divided into two classes: (1) those who are officers or directors of a member of the Bank ("Member Directors"); and (2) those who are not Member Directors but are elected by a plurality of the votes of the members of the Bank from among eligible persons nominated by the Board of Directors after consultation with the Affordable Housing Advisory Council ("AHAC") of the Bank ("Independent Directors"). Member Directors must constitute at least a majority, but no more than sixty percent, of the directors on the Board of Directors, and Independent Directors must constitute at least forty percent of the directors on the Board of Directors. At least two Independent Directors must also qualify as public interest directors. Annually, the Board shall determine how many, if any, of the Independent Director positions with terms beginning the following January 1 shall be public interest director positions, provided that the Bank at all times has at least two public interest director positions. Independent Directors shall be elected in an at-large election by a plurality of the members of the Bank entitled to vote, with each member having the same number of votes as it has with respect to the election of Member Directors, determined as specified in the Acts and the Rules and Regulations. Member Directors shall be elected as representing members located in a particular State, in the manner and with the number of votes specified in the Acts and the Rules and Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Nominations for Independent Director Positions</u>: The committee of the Board of Directors responsible for corporate governance ("Governance Committee") shall make recommendations to the Board of Directors regarding nominations for Independent Director positions. The Bank may solicit potential nominees for Independent Director positions from members; trade groups; organizations representing affordable housing, economic development, consumer or community interests; or other interested parties. The Governance Committee shall review applications and other information submitted by potential nominees and shall consider for nomination only those individuals who meet the eligibility requirements and knowledge or experience qualifications for the Independent Director positions as set forth in the Acts and Rules and Regulations. Other factors the Governance Committee or the Board of Directors may consider include, but are not limited to, current or prior experience on a board of directors, skills and experience likely to enhance the Board of Directors, and diversity. Before recommending for nomination any individual for an Independent Director position, the Governance Committee shall review the potential nominees with the AHAC and shall consider the AHAC's comments in making a recommendation to the Board of Directors. The Board of Directors, by a majority vote of the directors present at a meeting, a quorum being present (excluding any director who is not disinterested), shall nominate at least as many qualified individuals as there are Independent Director positions to be filled in that election.

<u>Section 2</u>. <u>Regular Meetings</u>: Regular meetings of the Board of Directors may be held at such date, time, and place as shall be determined from time to time by resolution of the Board of Directors, provided, however, that regular meetings shall be held at least six times a year. Regular meetings may be held without notice thereof, or the Board of Directors by resolution may direct the Secretary of the Bank to give three days' notice of each regular meeting to each director. If provided by the Acts, the Rules and Regulations, or in accordance with applicable FHFA guidance, any regular meeting may be held by telephone or video conference or similar communications equipment during which all directors participating in the meeting are able to hear and be heard by all other persons participating in the meeting<u>,</u> as long as the Board holds at least the minimum number of in-person meetings required by the Acts, the Rules and Regulations, or applicable FHFA guidance.

<u>Section 3</u>. <u>Special Meetings</u>: Special meetings of the Board of Directors may be called by the chair of the Board of Directors or the President of the Bank on at least twenty-four hours' written notice (which may be by email) to each director, and shall be called upon like notice by the Secretary of the Bank on the written request of four directors (or the written request of two directors, in the case of a special meeting to be held by telephone or video conference or similar communication equipment) stating the reasons therefor. The notice of such special meeting shall designate the date, time, and place of such meeting and shall contain a statement of the purpose of the meeting. Special meetings may be held without previous notice if all of the directors are actually present, or notice may be waived by any director before or after any such meeting. For any meeting held by telephone or video conference or similar communications equipment,

------

all directors participating in the meeting must be able to hear and be heard by all other persons participating in the meeting.

<u>Section 4</u>. <u>Quorum; Voting</u>: At any regular or special meeting of the Board of Directors, a majority of those authorized to act as directors shall constitute a quorum for the transaction of business. The majority of the directors present at any meeting, a quorum being present, shall conduct the business of the Board of Directors.

<u>Section 5</u>. <u>Officers of the Board of Directors</u>: The officers of the Board of Directors shall be a chair and a vice chair, each of whom shall be elected for a two-year term by a majority of the directors from among the directors. The officers shall have such duties as are usually incident to their respective offices and such as may be assigned to them by the Board of Directors.

<u>Section 6</u>. <u>Presiding Officers; Acting Officers</u>: At all meetings of the Board of Directors, the chair, or in his or her absence the vice chair, or in the absence of both of these officers, a chair pro tempore selected by vote of a majority of the directors present at the meeting, shall preside. If the position of chair is vacant or if a majority of the directors determines by action of the Board of Directors that the chair is more than temporarily unable to carry out the duties of office, the vice chair shall act as chair until the next regular or special meeting of the Board of Directors, at which meeting the Board of Directors shall by majority vote elect a new chair to complete the chair's term. If the position of vice chair is vacant or if a majority of the directors determines by action of the Board of Directors that the vice chair is more than temporarily unable to carry out the duties of office, the Board of Directors shall by majority vote elect a new vice chair to complete the vice chair's term. An acting officer of the Board of Directors shall have all the powers of the incumbent office.

<u>Section 7</u>. <u>Removal of Officers of the Board of Directors</u>: A chair, vice chair, or acting chair or vice chair of the Board of Directors may be removed from his or her position as an officer of the Board of Directors for good cause (as determined in accordance with paragraph 4 of Section 8 of this Article III) by vote of a majority of the directors then in office. A successor to the officer being removed shall then be elected by a majority of the directors from among the directors then in office to complete the officer's remaining term. If a chair, vice chair, or acting chair or vice chair is removed from their position as an officer by a vote of a majority of the directors then in office, a separate vote shall be required to remove that person as a director from the Board of Directors in accordance with Section 8 of this Article III.

<u>Section 8</u>. <u>Removal of Directors</u>: A director of the Bank may be removed from the Board of Directors for good cause upon vote of at least two thirds of the directors then in office (other than the director whose removal is sought) at a meeting that has been duly noticed, and not by shareholders.

Initiation of removal shall be by majority vote, at a duly called meeting of the Board of Directors.

The director whose removal is being sought shall be entitled to appear personally and address the directors attending such meeting.

Removal for good cause shall be based upon a determination by the Board of Directors, in its sole discretion, that continuation in office of such director would be harmful to the best interests of the Bank. In making this determination, the Board shall consider the totality of the circumstances, including, but not limited to, whether there has been or exists (i) a material violation of the Board of Directors Code of Conduct or other applicable Bank policy, (ii) a material violation of the director's duties and obligations as provided under the Act and its implementing Rules and Regulations, or (iii) conduct, or a mental or physical condition, that raises substantial questions concerning the director's ability to fulfill his or her duties and obligations.

Pending and final removal actions under this section shall be communicated to the FHFA.

<u>Section 9</u>. <u>Order of Business; Minutes</u>: At meetings of the Board of Directors, business shall be transacted in such order as, from time to time, the Board of Directors may determine. Minutes of each

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meeting of the Board of Directors shall be prepared by the Secretary of the Bank and shall be approved by the Board of Directors.

<u>Section 10</u>. <u>Bank Policies and Plans</u>: In accordance with the Acts and the Rules and Regulations, the Board of Directors shall adopt and review from time to time such Bank policies and plans as may be required by the Acts and the Rules and Regulations to be approved by the Board of Directors.

<u>Section 11</u>. <u>Action Without a Meeting</u>: Any action required or permitted to be taken at any meeting of the Board of Directors or any committee thereof may be taken without a meeting if all directors on the Board of Directors or such committee, as the case may be, consent thereto in writing (which may be by email or other electronic transmission) and the consents are filed with the minutes of the proceedings of the Board of Directors or of such committee.

<u>Section 12</u>. <u>Vacancies</u>: When any vacancy in a director position occurs, including as a result of a determination by the Bank or the FHFA that any director of the Bank no longer satisfies the eligibility requirements set forth in the Acts and the Rules and Regulations, or that a director has failed to comply with the reporting requirements of the Acts and the Rules and Regulations, the Board of Directors shall select, by a majority vote of the remaining Bank directors then in office, an individual to fill the unexpired term of the vacant director position, regardless of whether the remaining Bank directors constitute a quorum of the Bank's Board of Directors. The Board of Directors shall select to a vacant director position an individual who satisfies all of the eligibility requirements and any of the qualification requirements set forth in the Acts and the Rules and Regulations, except that if the vacant director position is a public interest director position and the Bank has at least two other public interest director positions that are not vacant, the Board of Directors may select any individual who is eligible and qualified for any Independent Director position. Prior to selection of any individual to fill an Independent Director position, the Board of Directors shall review the potential appointee with the AHAC and shall consider the AHAC's comments. Prior to the Board of Director's selection of any individual to fill a vacancy on the Board of Directors, the Bank must verify an individual's eligibility to serve in the manner required by the FHFA before allowing such individual to assume the director position.

<u>Section 13</u>. <u>Director Compensation</u>: The Board of Directors shall annually adopt a written policy to provide for payment of compensation and expenses to the directors in accordance with the Acts and the Rules and Regulations.

**ARTICLE IV**

**<u>Committees of the Board of Directors</u>**

<u>Section 1</u>. <u>General Provisions</u>: The Board of Directors shall establish such committees of the Board of Directors as are required by the Acts and the Rules and Regulations, and may establish such other committees, including an executive committee, as the Board of Directors deems necessary or appropriate, each committee to consist of three or more directors. The Board of Directors shall designate the chair, vice chair, and other members of each committee. Each committee shall have and may exercise such power and authority as may be established by the Board of Directors and, if applicable, specified in the Acts and the Rules and Regulations. For each committee, the Board of Directors shall adopt a charter that sets forth the purpose and operations of the committee and meets such other criteria as may be specified in the Acts and the Rules and Regulations.

<u>Section 2</u>. <u>Audit Committee</u>: The Board of Directors shall establish an Audit Committee, which shall consist of at least five directors meeting the criteria established by the Acts and the Rules and Regulations. The Board of Directors may by resolution from time to time change the members of the Audit Committee. The Audit Committee shall have and may exercise such power and authority as may be established by the Board of Directors and as specified in the Acts and the Rules and Regulations.

<u>Section 3</u>. <u>Risk Committee</u>: The Board of Directors shall establish a Risk Committee, which shall consist of at least three directors meeting the criteria established by the Acts and the Rules and Regulations. The

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Board of Directors may by resolution from time to time change the members of the Risk Committee. The Risk Committee shall have and may exercise such power and authority as may be established by the Board of Directors and as specified in the Acts and the Rules and Regulations.

<u>Section 4</u>. <u>Governance and Compensation Committee(s)</u>: The Board of Directors shall appoint a Governance and Compensation Committee, or committees, however styled, that shall have and may exercise such power and authority as may be established by the Board of Directors and as specified in the Acts and the Rules and Regulations.

<u>Section 5</u>. <u>Meetings</u>: The business of each committee of the Board of Directors shall be conducted in all material respects in the same manner as provided in these Bylaws for the conduct of business by the Board of Directors. Regular meetings of a committee may be held at such date, time, and place as shall be determined by the Board of Directors or the committee upon at least twenty-four hours' written notice (which may be by email) to each member of the committee. Special meetings of a committee may be called by the chair of the Board of Directors or the chair of the committee or the President of the Bank on at least twenty-four hours' written notice (which may be by email) to each member of the committee, such notice designating the date, time, and place of such meeting and containing a statement of the purpose of the meeting. Special meetings of a committee may be held without previous notice if all of the members of the committee are actually present, or notice may be waived by any committee member before or after any such meeting in writing or by email or other electronic transmission. Any regular or special committee meeting may be held by telephone or video conference or similar communications equipment during which all members of the committee participating in the meeting are able to hear and be heard by all other persons participating in the meeting. For any committee meeting, a majority of directors who are members of the committee shall constitute a quorum for the transaction of business; the majority of the committee members present at any meeting, a quorum being present, shall conduct the business of the committee. Minutes of each committee meeting shall be prepared by the Secretary of the Bank and shall be approved by such committee.

**ARTICLE V**

**<u>Officers and Employees</u>**

<u>Section 1</u>. <u>Officers</u>: The officers of the Bank shall be a President, one or more Executive Vice Presidents, Senior Vice Presidents, Managing Directors, Senior Directors, or Directors (but not including any Associate Director), and a Secretary, who shall have such authority and shall perform such duties as are usually incident to their respective offices and as the Board of Directors or the President shall prescribe. The President shall be the chief executive officer of the Bank and shall be primarily responsible for the operation and management of the Bank. To the extent not inconsistent with the Acts and the Rules and Regulations, one person may hold any two offices. The Board of Directors shall elect officers at the level of Executive Vice President and above. The President may appoint any additional corporate officers, who shall have such powers and duties as are usually incident to their respective offices and as may be assigned to them by the President or by another officer to whom such individual reports. The President may remove officers at the level of Executive Vice President and below, with the exception of the Chief Audit Executive whose removal must be approved by the Audit Committee, provided that with respect to removal of any officer at the level of Executive Vice President, the President must provide the Board of Directors notice in writing or by electronic transmission at least forty-eight hours in advance of such removal. The President may also remove or terminate any employee who is not an officer. Each officer of the Bank shall serve at the pleasure of the Bank and shall devote his or her time, skill, and energy to the business of the Bank, unless the contrary is expressly approved by the Board of Directors. The corporate officers of the Bank may extend or deny credit and take such other action as is in conformity with the policies of the Bank, the Acts, and the Rules and Regulations.

<u>Section 2</u>. <u>Employees</u>: The Bank shall also have such other employees as the Board of Directors or the President may authorize or whose appointment the Board of Directors may ratify. Employees of the Bank shall serve at the pleasure of the Bank and shall have such duties as are usually incident to their respective positions and as may be assigned to them by the President or other officers of the Bank.

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<u>Section 3</u>. <u>Compensation</u>: The Board of Directors shall fix the compensation of the President and other officers at the level of Executive Vice President and above. The compensation of all other officers and employees of the Bank shall be fixed by the President and shall be within the annual operating expense budgets approved for the Bank by the Board of Directors.

<u>Section 4</u>. <u>Acting President</u>: The Board of Directors may from time to time designate an individual to act as President in the event of the resignation, removal, death, or incapacity of the elected President. Such acting President shall have all of the powers conferred upon the President under these Bylaws, by resolution of the Board of Directors or any committee, or by applicable law, and shall hold such position until such time as the elected President shall no longer be incapacitated or until such time as the Board of Directors shall elect a successor President.

**ARTICLE VI**

**<u>Capital Stock</u>**

<u>Section 1</u>. <u>Issuance</u>: The Bank may issue or cause to be issued to each member such shares of capital stock as may be acquired by such member from time to time in accordance with the Acts, the Rules and Regulations, and the Bank's Capital Plan.

<u>Section 2</u>. <u>Transfers</u>: Subject to the provisions of the Acts, the Rules and Regulations, and the Bank's Capital Plan, Bank stock shall be transferable only upon the records of the Bank upon the request of a duly authorized representative of the holder. Each transfer shall be recorded, and a record of each transfer shall be maintained as a record of the Bank.

<u>Section 3</u>. <u>Dividends</u>: Dividends may be declared by the Board of Directors at its discretion, provided that such dividends shall be declared and paid in the manner prescribed by the Acts, the Rules and Regulations, and the Bank's Capital Plan.

**ARTICLE VII**

**<u>General Provisions</u>**

<u>Section 1</u>. <u>Budgets</u>: The Board of Directors shall annually adopt an operating expense budget and a capital expenditures budget for the following year and shall take such additional actions with respect to such budgets as are required by the Acts and the Rules and Regulations.

<u>Section 2</u>. <u>Bonds and Insurance</u>: The Bank shall maintain adequate financial institution crime or fidelity bonds or similar bonds or insurance covering all officers, employees, attorneys, or agents having control over or access to monies or securities owned by the Bank or in its possession.

<u>Section 3</u>. <u>Indemnification</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Actions Other than By or in the Right of the Bank</u>: The Bank shall have power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative and whether formal or informal (a "Proceeding") (other than an action by or in the right of the Bank) by reason of the fact that he or she is or was a director, officer, employee, or agent of the Bank, or is or was serving at the request of the Bank as a director, officer, employee, or agent of another corporation, partnership, limited liability company, joint venture, trust, or other enterprise, or any joint office (including the Office of Finance), committee or council of the Federal Home Loan Banks, the Financing Corporation, the Resolution Funding Corporation, or any other instrumentality or agency of the United States government, against expenses (including costs and attorneys' fees), judgments, fines, and amounts paid in settlement actually and reasonably incurred by him or her in connection with such Proceeding if he or she acted in

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good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Bank, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. The termination of any Proceeding by judgment, order, settlement, conviction, or upon a plea of <u>nolo contendere</u> or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Bank, and, with respect to any criminal action or proceeding, had reasonable cause to believe that his or her conduct was unlawful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Actions By or in the Right of the Bank</u>: The Bank shall have power to indemnify any person who was or is a party or is threatened to be made a party to any Proceeding by or in the right of the Bank to procure a judgment in its favor by reason of the fact that he or she is or was a director, officer, employee, or agent of the Bank, or is or was serving at the request of the Bank as a director, officer, employee, or agent of another corporation, partnership, limited liability company, joint venture, trust, or other enterprise, or any joint office (including the Office of Finance), committee, or council of the Federal Home Loan Banks, the Financing Corporation, the Resolution Funding Corporation, or any other instrumentality or agency of the United States government, against expenses (including costs and attorneys' fees) actually and reasonably incurred by him or her or in connection with the defense or settlement of such Proceeding if he or she acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Bank, except that no indemnification shall be made in respect of any claim, issue, or matter as to which such person shall have been adjudged to be liable to the Bank, unless and only to the extent that the court in which such Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which such court shall deem proper. As used in this paragraph, the term "expenses" includes, without limitation, attorneys' fees and any expenses of successfully establishing a right to indemnification under this section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Entitlement to Indemnification</u>: To the extent that a current or former director or officer of the Bank has been successful on the merits or otherwise in defense of any Proceeding referred to in paragraphs (a) and (b) of this section, or in defense of any claim, issue, or matter therein, such person shall be indemnified against expenses (including costs and attorneys' fees) actually and reasonably incurred by such person in connection therewith. The Bank may indemnify any other person who is not a current or former director or officer of the Bank against expenses (including costs and attorneys' fees) actually and reasonably incurred by such person in connection therewith to the extent he or she has been successful on the merits or otherwise in defense of any Proceeding referred to in paragraphs (a) and (b) of this section, or in defense of any claim, issue, or matter therein. Subject to the other provisions of this Article VII, the Bank shall have power to indemnify its employees and agents, or any other persons, to the extent not prohibited by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Authorization of Indemnification under Paragraphs (a) and (b)</u>: Except as provided in paragraph (c) of this section, any indemnification under paragraphs (a) and (b) of this section (unless ordered by a court) shall be made by the Bank only as authorized in the specific case upon a determination that indemnification of the current or former director or officer is proper in the circumstances because such person has met the applicable standard of conduct set forth in paragraphs (a) and (b) of this section. Such determination shall be made (1) by a majority vote of the directors who are not parties to such Proceeding, even though less than a quorum, (2) by a committee of such directors designated by majority vote of such directors, even though less than a quorum, or (3) if there are no such directors, or if such directors so direct, by independent legal counsel in a written opinion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Right of Indemnitees to Bring Suit</u>: In the event any indemnification provided by paragraphs (a) and (b) of this section is not made in full within ninety days after a written claim therefor has been received by the Bank from a director or officer entitled to indemnification pursuant to paragraph (c) of this section or as to whom indemnification has been authorized pursuant to paragraph (d) of this section, the claimant may at any time thereafter, subject to any arbitration or other agreement between the claimant and the Bank, bring suit against the Bank to recover the unpaid amount of the claim for indemnification and to the extent such claimant is successful such action, the claimant shall be entitled to recover also the expense of prosecuting such claim for indemnification.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Advance Payment of Expenses</u>: Expenses (including costs and attorneys' fees) actually and reasonably incurred by a director or officer in defending any Proceeding may be paid by the Bank in advance of the final disposition of such Proceeding upon receipt of an undertaking by or on behalf of such person to repay such amount if it shall ultimately be determined that such person is not entitled to be indemnified by the Bank as authorized in this section. Such expenses (including costs and attorneys' fees) actually and reasonably incurred by former directors or officers may be so paid upon such terms and conditions, if any, as the Bank deems appropriate. Without limiting the foregoing, an unsecured undertaking to repay the Bank in the event such person is ultimately determined not to be entitled to indemnification shall be considered a reasonable condition upon which to advance such costs and expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Rights Not Exclusive</u>: The indemnification and advancement of expenses provided by this section shall not be deemed exclusive of any other rights to which anyone seeking indemnification or advancement of expenses may be entitled under any other provisions of these Bylaws, any agreement providing for indemnification or advancement of expenses, any vote of disinterested directors, or otherwise, both as to action in his or her official capacity and as to action in another capacity while holding such office. A right to indemnification or to advancement of expenses arising under these Bylaws shall not be eliminated or impaired by an amendment to these Bylaws after the occurrence of the act or omission that is the subject of the Proceeding for which indemnification or advancement of expenses is sought.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Insurance</u>: The Bank shall have power to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee, or agent of the Bank, or is or was serving at the request of the Bank as a director, officer, employee, or agent of another corporation, partnership, limited liability company, joint venture, trust, or other enterprise, or any joint office (including the Office of Finance), committee or council of the Federal Home Loan Banks, the Financing Corporation, the Resolution Funding Corporation, or any other instrumentality or agency of the United States government, against any liability asserted against and incurred by such person in any such capacity or arising out of his or her status as such, whether or not the Bank would have the power to indemnify such person against such liability under the provisions of this section, provided however, the Bank shall not pay the premiums for any insurance prohibited by the Rules and Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Certain Definitions</u>: For purposes of this section, references to: (1) "other enterprise" shall include employee benefit plans; (2) "fines" shall include any excise taxes assessed on a person with respect to an employee benefit plan; and (3) "serving at the request of the Bank" shall include any service as a director, officer, employee, or agent of the Bank which imposes duties on, or involves services by, such director, officer, employee, or agent with respect to an employee benefit plan, its participants, or beneficiaries. A person who acted in good faith and in a manner he or she reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner "not opposed to the best interests of the Bank" as set forth in this section. References to "action," "suit," or "proceeding" shall include any appeal or other proceeding for review. Solely for purposes of subsections (c), (d), (e), and (f) of this Section 3, references to "officer" shall mean any Executive Vice President or Senior Vice President.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Successors to Indemnitees</u>: The indemnification and advancement of expenses provided by this section or otherwise granted by the Bank shall, unless otherwise provided when authorized or ratified, continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors, administrators, and other legal representatives of such person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Prohibited Payments</u>: The Bank shall not make any indemnification payments to any person if such payment is prohibited by the Rules and Regulations or an order issued by the Director of the FHFA in accordance with 12 U.S.C. § 4518(e) with regard to any administrative proceeding or civil action instituted by the FHFA.

<u>Section 4</u>. <u>Limitation of Liability</u>: To the fullest extent permitted by Delaware statutory and decisional law and to the fullest extent permitted by applicable law, as amended or interpreted, no current or former

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director or officer shall be personally liable to the Bank or its shareholders for monetary damages for breach of fiduciary duty as a director or officer of the Bank.

<u>Section 5</u>. Reserved.

<u>Section 6</u>. <u>Operations; FHFA Approval</u>: The Bank shall operate and do business within the provisions of the Acts, the Rules and Regulations, its certificate of organization, and these Bylaws. Where these Bylaws require or permit an action to be taken by the Bank, the Board of Directors or any of the Bank's officers or employees, which action requires the prior approval or notice without objection of the FHFA under the provisions of the Acts, the Rules and Regulations, or the policies of the FHFA, such approval or notice without objection of the FHFA shall be obtained or given, as appropriate, prior to such action taking effect.

<u>Section 7</u>. <u>Fiscal Year</u>: The fiscal year of the Bank shall begin on the first day of January.

<u>Section 8</u>. <u>Amendment of Bylaws</u>: These Bylaws may be amended by the affirmative vote of a majority of the Board of Directors then in office at any regular or special meeting of the Board of Directors, provided that each director shall have been given notice of the proposed amendment and of the form of such amendment at least five days preceding any meeting called for such purpose. These Bylaws may be amended by the affirmative vote of a majority of the Board of Directors then in office at any regular meeting without written notice of the proposed amendment and of the form of the amendment being given to each director, provided that the form of the proposed amendment has been submitted to the Board of Directors for consideration at the previous regular meeting of the Board of Directors and has been incorporated in the minutes of said meeting.

<u>Section 9</u>. <u>Corporate Seal</u>: The seal of the Bank shall be in the charge of the Secretary of the Bank and may be used, as needed, by the Secretary and such Bank officer(s) as may be designated in writing by the Secretary.

<u>Section 10</u>. <u>Designation of Law for Corporate Governance and Indemnification Practices and Procedures</u>: To the extent not inconsistent with applicable federal law, including, but not limited to, the Acts and the Rules and Regulations, and pursuant and subject to 12 C.F.R. Part 1239 (or applicable successor provisions), the Bank has elected to follow the corporate governance and indemnification practices and procedures of the Delaware General Corporation Law and as provided by Delaware decisional law, as the same may be amended or interpreted. The rights of Bank members and shareholders are conferred by the Acts and the Rules and Regulations, not by any provision of state law. Nothing in these Bylaws shall create or be deemed to create any rights under the laws of Delaware or otherwise, in any third party, including any member or shareholder of the Bank, including without limitation, rights with respect to shareholder procedures, shareholder actions, dividends, stock, assets, liabilities, business combinations, stock ownership, director nominations, elections, removals and vacancies, liquidations, derivative actions, Bylaw amendments, voting, inspection, meeting mechanics, or other shareholder procedural provisions, nor shall anything in these Bylaws cause or be deemed to cause the Bank, or its directors, officers, or employees to become subject to the jurisdiction of any state court.

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**ARTICLE VIII**

**<u>Emergency Bylaws</u>**

<u>Section 1</u>. <u>Emergency</u>: This Article VIII shall be operative if a meeting or action of the Board of Directors is requested or required during the existence of any catastrophe or other similar emergency condition as a result of which a meeting consisting of a quorum of the Board of Directors cannot be readily convened as provided in Article III of these Bylaws (an "emergency"), notwithstanding any different or conflicting provision in the preceding Articles of these Bylaws. An emergency may be declared by any director or the President calling a meeting under Section 2 of this Article VIII, and such declaration shall be ratified by the act of a majority of the directors, present at such meeting at which a quorum, pursuant to Section 3 of this Article VIII, is present. Such emergency shall terminate by the act of a majority of the directors present at any meeting at which a quorum, pursuant to Section 3 of this Article VIII, or pursuant to Article III of these Bylaws, is present. To the extent not inconsistent with the provisions of this Article VIII, the Bylaws provided in the preceding Articles shall remain in effect during such emergency, and upon termination of such emergency, the provisions of this Article VIII shall cease to be operative.

<u>Section 2</u>. <u>Meetings</u>: During any emergency, a meeting of the Board of Directors may be called by any director, or the President with notice of the date, time, and place of the meeting attempted to all directors, by any available means of communication, by the person calling the meeting at such time in advance of the meeting as circumstances permit, in the judgment of the person calling the meeting.

<u>Section 3</u>. <u>Quorum</u>: At any meeting of the Board of Directors called in accordance with Section 2 of this Article VIII, the presence or participation of five directors shall constitute a quorum for the transaction of business.

<u>Section 4</u>. <u>Bylaws</u>: At any meeting called in accordance with Section 2 of this Article VIII, the Board of Directors may modify, amend, or add to the provisions of this Article VIII so as to make any provision that may be practical or necessary under the circumstances of the emergency.

<u>Section 5</u>. <u>Liability</u>: No director, officer, employee, or agent of the Bank acting in accordance with the provisions of this Article VIII shall be liable except for willful misconduct.

<u>Section 6</u>. <u>Repeal or Change</u>: The provisions of this Article VIII shall be subject to repeal or change by further action of the Board of Directors, but no such repeal or change shall modify the provisions of Section 5 of this Article with regard to action taken prior to the time of such repeal or change.

## Exhibit 10.1

**Exhibit 10.1**

**GENERAL RELEASE AGREEMENT**

This General Release Agreement ("Agreement") is made by and between Anne Segrest McCulloch ("Executive") and the Federal Home Loan Bank of San Francisco (the "Bank") (collectively referred to as the "Parties" or individually referred to as a "Party").

**RECITALS**

WHEREAS, Executive was employed by the Bank;

WHEREAS, Executive provided notice of resignation for "Good Reason," as defined in the Federal Home Loan Bank of San Francisco Executive Incentive Plan, as amended and restated effective September 26, 2024 (the "EIP"), to the Bank's Board of Directors (the "Board");

WHEREAS, the Board accepted the Executive's resignation of employment for Good Reason;

WHEREAS, pursuant to the terms of the EIP, in the event of a departmental reorganization, a participant in the EIP must sign and not revoke (to the extent the participant has such right) a general release agreement offered by the Bank in order to be eligible to receive payment under the EIP;

WHEREAS, the Parties wish to resolve any and all disputes, claims, complaints, grievances, charges, actions, petitions, and demands that the Executive may have against the Bank and any of the Releasees as defined below, including, but not limited to, any and all claims arising out of or in any way related to Executive's employment with or separation from the Bank;

NOW, THEREFORE, in consideration of the mutual promises made herein, the Bank and Executive hereby agree as follows:

**COVENANTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Separation Date</u>. The Executive's last day of employment is May 15, 2025 (the "Separation Date").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Consideration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.*Payment*. After the Parties sign this Agreement, and contingent on Executive not revoking this Agreement as permitted in Section 5 below, the Bank agrees to pay Executive the following "Deferred Awards" in the following amounts: (A) Two Hundred Thirty-Eight Thousand, Six Hundred Twenty dollars ($238,620) payable in January 2026, (B) Two Hundred Twenty-Four Thousand, Six Hundred Eighty-Five dollars ($224,685) payable in January 2027, (C) an estimated Two Hundred Twenty-One Thousand, Fifty-Three dollars ($221,053) payable in January 2028, and (D) a pro rata portion of the amount of the "Annual Award" determined by the Board based on satisfaction of the "Performance Goals" and "Qualifiers" for the "Performance Period" will be treated as vested based on the portion of the "Performance Period" during which the Executive was employed in 2025 with 50% of such prorated "Annual Award" payable in 2026 and 50% payable as a "Deferred Award" (for purposes of this section all words or phrases in quotations are given the same meaning as defined in the EIP).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.*Acknowledgements*. Except as explicitly set forth in this Agreement, Executive acknowledges and agrees that Executive is not entitled to receive any severance benefits from the Bank, including, but not limited to, any such severance benefits that Executive may have otherwise been entitled to receive pursuant to any agreement, including the Bank's Executive Severance Plan. Executive hereby waives Executive's right to receive any severance or other separation benefits that are not explicitly set

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**Exhibit 10.1**

forth in this Agreement. Executive acknowledges and agrees that the accelerated vesting and payment of the amounts in Section 2(a) above are contingent on Executive signing and not revoking this Agreement and that without this Agreement Executive is otherwise not entitled to the consideration listed in this Section 2(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Benefits</u>. Executive's participation in all benefits and incidents of employment, including, but not limited to, the accrual of bonuses, vacation, and paid time off, ceased as of the Separation Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Payment of Salary and Receipt of All Benefits</u>. Executive acknowledges and represents that, other than the consideration set forth in this Agreement and any deferred compensation, including payments under the Benefit Equalization Plan, Deferred Compensation Plan, Supplemental Executive Retirement Plan, and Cash Balance Plan, as applicable, the Bank has paid or provided (to the extent applicable) all salary, wages, bonuses, vacation/paid time off, premiums, leaves, housing allowances, relocation costs, interest, severance, outplacement costs, fees, reimbursable expenses, commissions, stock, stock options, vesting, and any and all other benefits and compensation due to Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Release of Claims</u>. Executive agrees that the foregoing consideration represents settlement in full of all outstanding obligations owed to Executive by the Bank, its parents, subsidiaries, and affiliates, and each of their respective current and former officers, directors, employees, agents, investors, attorneys, shareholders, administrators, benefit plans, plan administrators, professional employer organizations or co-employers, insurers, trustees, divisions, predecessor and successor corporations, and assigns (collectively, the "Releasees"). Executive, on Executive's own behalf and on behalf of Executive's respective heirs, family members, executors, agents, and assigns, hereby and forever releases the Releasees from, and agrees not to sue concerning, or in any manner to institute, prosecute, or pursue, any claim, complaint, charge, duty, obligation, demand, or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that Executive may possess against any of the Releasees arising from any omissions, acts, facts, or damages that have occurred up until and including the date Executive signs this Agreement, including, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.any and all claims relating to or arising from Executive's employment relationship with the Bank and the termination of that relationship;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.any and all claims for wrongful discharge of employment, termination in violation of public policy, discrimination, harassment, retaliation, breach of contract (both express and implied), breach of covenant of good faith and fair dealing (both express and implied), promissory estoppel, negligent or intentional infliction of emotional distress, fraud, negligent or intentional misrepresentation, negligent or intentional interference with contract or prospective economic advantage, unfair business practices, defamation, libel, slander, negligence, personal injury, assault, battery, invasion of privacy, false imprisonment, conversion, and disability benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.any and all claims for violation of any federal, state, or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964, as amended, the Civil Rights Act of 1991, the Rehabilitation Act of 1973, the Americans with Disabilities Act, as amended, the Equal Pay Act, the Pregnant Workers Fairness Act, the Fair Labor Standards Act, the National Labor Relations Act, the Labor Management Relations Act, the Fair Credit Reporting Act, the Age Discrimination in Employment Act of 1967, as amended, the Older Workers Benefit Protection Act, the Rehabilitation Act, the Consolidated Omnibus Budget Reconciliation Act, the Employee Retirement Income Security Act of 1974, the Worker Adjustment and Retraining Notification Act, the Family and Medical Leave Act, the Immigration Reform and Control Act, Sarbanes-Oxley Act of 2002, the Code of Federal Regulations, the California Family Rights Act, the California Fair Employment and Housing Act, the California Equal Pay Act, the California Pregnancy Discrimination Act, the California Consumer Privacy Act, the California

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**Exhibit 10.1**

Workers' Compensation Act, the California Labor Code, the California Government Code, the California Business & Professions Code, the California Civil Code, and the California Code of Regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.any and all claims for violation of the federal or any state constitution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.any and all claims arising out of any other laws and regulations relating to employment or employment discrimination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.any claim for any loss, cost, damage, or expense arising out of any dispute over the non-withholding or other tax treatment of any proceeds received by Executive from the Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.except as expressly provided in Section 2 above any claim for severance benefits under the Bank's Executive Severance Policy, and any claim for incentive compensation payments under the Bank's incentive compensation plans, including, but not limited to, the EIP; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.any and all claims for attorneys' fees and costs.

Executive agrees that the release set forth in this section shall be and remain in effect in all respects as a complete general release as to the matters released. This release does not extend to any obligations incurred under this Agreement. This release does not release claims that cannot be released as a matter of law. Any and all disputed wage claims that are released herein shall be subject to binding arbitration in accordance with this Agreement, except as required by applicable law. This release does not extend to any right Executive may have to unemployment compensation benefits. Executive is not waiving or releasing any rights or claims to any claims for indemnification and/or advancement of expenses arising under any indemnification agreement between Executive and the Bank or under the bylaws, certificate of incorporation or other similar governing document of the Bank. The terms contained in this Agreement shall be treated as sufficient to comprise a "severance and general release agreement" for purposes of Section 3.6(a)(ii) of the EIP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Acknowledgment of Waiver of Claims under ADEA</u>. Executive acknowledges that Executive is waiving and releasing any rights Executive may have under the Age Discrimination in Employment Act of 1967, as amended, ("ADEA"), and that this waiver and release is knowing and voluntary. Executive agrees that this waiver and release does not apply to any rights or claims that may arise under the ADEA after the date Executive signs this Agreement. Executive acknowledges that the consideration given for this waiver and release is in addition to anything of value to which Executive was already entitled. Executive further acknowledges that Executive has been advised by this writing that: (a) Executive should consult with an attorney prior to executing this Agreement; (b) Executive has twenty-one (21) calendar days within which to consider this Agreement; (c) Executive has seven (7) calendar days following Executive's execution of this Agreement to revoke this Agreement (the "Revocation Period"); (d) this Agreement shall not be effective until after the Revocation Period has expired; and (e) nothing in this Agreement prevents or precludes Executive from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties, or costs for doing so, unless specifically authorized by federal law. In the event Executive signs this Agreement and returns it to the Bank in less than the 21-day period identified above, Executive hereby acknowledges that Executive has knowingly and voluntarily chosen to waive the time period allotted for considering this Agreement. Executive acknowledges and understands that revocation must be accomplished by a written notification to the person executing this Agreement on the Bank's behalf that is received within seven (7) calendar days after Executive signs this Agreement. The Parties agree that changes, whether material or immaterial, do not restart the running of the 21-day period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.<u>Unknown Claims and California Civil Code Section 1542</u>. Executive acknowledges that Executive is familiar with the principle that a general release does not extend to claims that the releasing

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**Exhibit 10.1**

party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the released party. Executive, being aware of said principle, agrees to expressly waive any rights Executive may have to that effect, as well as under any other statute or common law principles of similar effect. In addition, Executive acknowledges that Executive has been advised to consult with legal counsel and is familiar with the provisions of California Civil Code Section 1542, a statute that otherwise prohibits the release of unknown claims, which provides as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.

Executive, being aware of said code section, agrees to expressly waive any rights Executive may have thereunder, as well as under any other statute or common law principles of similar effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.<u>No Pending or Future Lawsuits</u>. Executive represents that Executive has no lawsuits, claims, or actions pending in Executive's name, or on behalf of any other person or entity, against the Bank or any of the other Releasees. Executive also represents that Executive does not intend to bring any claims on Executive's own behalf or on behalf of any other person or entity against the Bank or any of the other Releasees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.<u>No Right to Re-employment</u>. Executive understands and agrees that, as a condition of this Agreement, Executive shall not be entitled to any employment with the Bank, and Executive hereby waives any right, or alleged right, of employment or re-employment with the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.<u>Confidentiality</u>. Subject to the "Protected Activity Not Prohibited" section below, Executive agrees to maintain in complete confidence the existence of this Agreement, the contents and terms of this Agreement, and the consideration for this Agreement (hereinafter collectively referred to as "Separation Information"), and Executive agrees that Executive will not publicize, directly or indirectly, any Separation Information. Except as required by law, and subject to the "Protected Activity Not Prohibited" section below, Executive may disclose Separation Information only to Executive's immediate family members, the Court in any proceedings to enforce the terms of this Agreement, Executive's attorney(s), and Executive's accountant(s) and any professional tax advisor(s) to the extent that they need to know the Separation Information in order to provide advice on tax treatment or to prepare tax returns, and must prevent disclosure of any Separation Information to all other third parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.<u>Cooperation with Bank</u>. Executive agrees that Executive shall provide reasonable cooperation and assistance to the Bank in the transition of Executive's role and in the resolution of any matters in which Executive was involved during the course of Executive's employment, or about which Executive has knowledge, and in the defense or prosecution of any investigations, audits, claims or actions now in existence or currently ongoing or that may be brought or threatened in the future against or on behalf of the Bank, including any investigations, audits, claims or actions involving or against its officers, directors and employees. Executive's cooperation with such matters shall include, without limitation, being available to consult with the Bank regarding matters in which Executive has been involved or has knowledge; to reasonably assist the Bank in preparing for any proceeding (including, without limitation, depositions, mediations, hearings, settlement negotiations, discovery conferences, arbitration, or trial); to provide affidavits reflecting truthful written testimony; to assist with any audit, inspection, proceeding or other inquiry; and to act as a witness to provide truthful testimony in connection with any investigation, audit, mediation, litigation or other legal proceeding affecting the Bank. Executive agrees to keep the Bank's

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**Exhibit 10.1**

Human Resource department apprised of Executive's current contact information, including telephone numbers, work address, home address, and email address(es), and to promptly respond to communications from the Bank in connection with this Section. Executive understands and agrees that this provision requires Executive's cooperation with the Bank, but is not intended to have any influence whatsoever on any specific outcome in any matter, and Executive is expected at all times to provide truthful testimony and responses in connection with any matter. Executive understands and agrees that Executive is not otherwise entitled to any additional compensation for such cooperation, beyond the payments and consideration provided under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.<u>Trade Secrets and Confidential Information/Bank Property</u>. Executive acknowledges that, separate from this Agreement, Executive remains under continuing employment-related obligations to the Bank (subject to the "Protected Activity Not Prohibited" section below), including the provisions therein regarding nondisclosure of the Bank's trade secrets and confidential and proprietary information. Consistent with Executive's employment-related obligations, Executive agrees at all times hereafter to hold in the strictest confidence, and not to use or disclose to any person or entity, any Confidential Information of the Bank, subject to the "Protected Activity Not Prohibited" section below. Executive understands that "Confidential Information" means any Bank or associated third party proprietary information, technical data, trade secrets or know-how, including, but not limited to, research, product plans, products, services, customer lists and customers (including, but not limited to, customers of the Bank on whom Executive has called or with whom Executive became acquainted during the term of Executive's employment), markets, software, developments, inventions, processes, formulas, technology, designs, drawings, engineering, hardware configuration information, marketing, finances, or other business information disclosed to Executive by the Bank either directly or indirectly, in writing, orally, or by drawings or observation of parts or equipment. Executive further understands that Confidential Information does not include any of the foregoing items that have become publicly known and made generally available through no wrongful act of Executive's or of others who were under confidentiality obligations as to the item or items involved or improvements or new versions thereof. Further, Confidential Information does not include general knowledge, skill, and experience Executive has acquired during the course of or in connection with Executive's employment with the Bank or a former employer. Executive hereby grants consent to notification by the Bank to any new employer about Executive's obligations under this section. Executive represents that Executive has not misused or disclosed Confidential Information to any unauthorized party. Executive's signature below constitutes Executive's certification under penalty of perjury that Executive has returned all documents and other items provided to Executive by the Bank, developed or obtained by Executive in connection with Executive's employment with the Bank, or otherwise belonging to the Bank (with the exception of a copy of the employee handbook and personnel documents specifically relating to Executive).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.<u>No Assistance with Complaints</u>. Subject to the "Protected Activity Not Prohibited" section below, Executive agrees that Executive will not knowingly encourage, counsel, or assist any attorneys or their clients in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by any third party against any of the Releasees, unless under a subpoena or other court order to do so or upon written request from an administrative agency or the legislature or as related directly to the ADEA waiver in this Agreement. Executive agrees both to immediately notify the Bank upon receipt of any such subpoena or court order or written request from an administrative agency or the legislature, and to furnish, within three (3) business days of its receipt, a copy of such subpoena or other court order or written request from an administrative agency or the legislature. Subject to the "Protected Activity Not Prohibited" section below, if approached by anyone for counsel or assistance in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints against any of the Releasees, Executive shall state no more than that Executive cannot provide counsel or assistance.

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**Exhibit 10.1**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.<u>Mutual Non-Disparagement</u>. Subject to the "Protected Activity Not Prohibited" section below, Executive agrees to refrain from any disparagement, defamation, libel, or slander of any of the Releasees, and agrees to refrain from any tortious interference with the contracts and relationships of any of the Releasees. The Bank agrees to instruct the Bank's current (as of the Separation Date) executive officers and members of its Board (in each case, only for so long as such individual remains an officer or director of the Bank) to refrain from any disparagement, defamation, libel, or slander of Executive and from any tortious interference with the contracts and relationships of any of Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.<u>Protected Activity Not Prohibited</u>. Executive understands that nothing in this Agreement shall in any way limit or prohibit Executive from engaging in any Protected Activity. Protected Activity includes: (i) filing and/or pursuing a charge, complaint, or report with, or otherwise communicating, cooperating, or participating in any investigation or proceeding that may be conducted by any federal, state or local government agency or commission, including the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, and the National Labor Relations Board ("Government Agencies"); and/or (ii) discussing or disclosing information about unlawful acts in the workplace, such as harassment or discrimination or any other conduct that Executive has reason to believe is unlawful. Notwithstanding the foregoing, Executive agrees to take all reasonable precautions to prevent any unauthorized use or disclosure of any Bank trade secrets, proprietary information, or confidential information that does not involve unlawful acts in the workplace or the activity otherwise protected herein. Executive further understands that Protected Activity does not include the disclosure of any Bank attorney-client privileged communications or attorney work product. In addition, pursuant to the Defend Trade Secrets Act of 2016, Executive is notified that an individual will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (i) is made in confidence to a federal, state, or local government official (directly or indirectly) or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if (and only if) such filing is made under seal. In addition, an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the individual's attorney and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order. Finally, nothing in this Agreement constitutes a waiver of any rights Executive may have under the Sarbanes-Oxley Act or Section 7 of the National Labor Relations Act ("NLRA"). For purposes of clarity, nothing in this Agreement shall be interpreted to impair or limit Executive's participation in any legally protected activities, such as (i) forming, joining, or supporting labor unions, (ii) bargaining collectively through representatives of employees' choosing, (iii) discussing wages, benefits, or terms and conditions of employment, and (iv) discussing, or raising complaints about, working conditions for the purpose of mutual aid or protection of Executive or the Bank's other current or former employees, to the extent such activities are protected by Section 7 of the NLRA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.<u>Breach</u>. In addition to the rights provided in the "Attorneys' Fees" section below, Executive acknowledges and agrees that any material breach of this Agreement, unless such breach constitutes a legal action by Executive challenging or seeking a determination in good faith of the validity of the waiver herein under the ADEA, shall entitle the Bank immediately to recover and/or cease providing the consideration provided to Executive under this Agreement and to obtain damages, except as provided by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.<u>No Admission of Liability</u>. Executive understands and acknowledges that with respect to all claims released herein, this Agreement constitutes a compromise and settlement of any and all actual or potential disputed claims by Executive. No action taken by the Bank hereto, either previously or in connection with this Agreement, shall be deemed or construed to be (a) an admission of the truth or falsity

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**Exhibit 10.1**

of any actual or potential claims or (b) an acknowledgment or admission by the Bank of any fault or liability whatsoever to Executive or to any third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.<u>Costs</u>. The Parties shall each bear their own costs, attorneys' fees, and other fees incurred in connection with the preparation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.<u>ARBITRATION</u>. EXCEPT AS PROHIBITED BY LAW, THE PARTIES AGREE THAT ANY AND ALL DISPUTES ARISING OUT OF THE TERMS OF THIS AGREEMENT, THEIR INTERPRETATION, EXECUTIVE'S EMPLOYMENT WITH THE BANK OR THE TERMS THEREOF, OR ANY OF THE MATTERS HEREIN RELEASED, SHALL BE SUBJECT TO ARBITRATION UNDER THE FEDERAL ARBITRATION ACT (THE "FAA") AND THAT THE FAA SHALL GOVERN AND APPLY TO THIS ARBITRATION AGREEMENT WITH FULL FORCE AND EFFECT; HOWEVER, WITHOUT LIMITING ANY PROVISIONS OF THE FAA, A MOTION OR PETITION OR ACTION TO COMPEL ARBITRATION MAY ALSO BE BROUGHT IN STATE COURT UNDER THE PROCEDURAL PROVISIONS OF SUCH STATE'S LAWS RELATING TO MOTIONS OR PETITIONS OR ACTIONS TO COMPEL ARBITRATION. EXECUTIVE AGREES THAT, TO THE FULLEST EXTENT PERMITTED BY LAW, EXECUTIVE MAY BRING ANY SUCH ARBITRATION PROCEEDING ONLY IN EXECUTIVE'S INDIVIDUAL CAPACITY. ANY CLAIMS EXECUTIVE MAY BRING PURSUANT TO THE PRIVATE ATTORNEYS GENERAL ACT ("PAGA") ON BEHALF OF THE LABOR AND WORKFORCE DEVELOPMENT AGENCY MUST BE ARBITRATED ONLY IN EXECUTIVE'S INDIVIDUAL CAPACITY WITHOUT ANY JOINDER OR REPRESENTATION OF ANY CALIFORNIA LABOR CODE VIOLATIONS THAT WERE OR COULD BE ASSERTED BY OR ON BEHALF OF ANY OTHER EMPLOYEES. ANY ARBITRATION WILL OCCUR IN SAN FRANCISCO COUNTY, CALIFORNIA BEFORE JAMS, PURSUANT TO ITS EMPLOYMENT ARBITRATION RULES & PROCEDURES ("JAMS RULES"), EXCEPT AS EXPRESSLY PROVIDED IN THIS SECTION. THE PARTIES AGREE THAT THE ARBITRATOR SHALL HAVE THE POWER TO DECIDE ANY MOTIONS BROUGHT BY ANY PARTY TO THE ARBITRATION, INCLUDING MOTIONS FOR SUMMARY JUDGMENT AND/OR ADJUDICATION, AND MOTIONS TO DISMISS AND DEMURRERS, APPLYING THE STANDARDS SET FORTH UNDER THE CALIFORNIA CODE OF CIVIL PROCEDURE. THE PARTIES AGREE THAT THE ARBITRATOR SHALL ISSUE A WRITTEN DECISION ON THE MERITS. THE PARTIES ALSO AGREE THAT THE ARBITRATOR SHALL HAVE THE POWER TO AWARD ANY REMEDIES AVAILABLE UNDER APPLICABLE LAW. THE ARBITRATOR MAY GRANT INJUNCTIONS AND OTHER RELIEF IN SUCH DISPUTES. THE DECISION OF THE ARBITRATOR SHALL BE FINAL, CONCLUSIVE, AND BINDING ON THE PARTIES TO THE ARBITRATION. THE PARTIES AGREE THAT THE PREVAILING PARTY IN ANY ARBITRATION SHALL BE ENTITLED TO INJUNCTIVE RELIEF IN ANY COURT OF COMPETENT JURISDICTION TO ENFORCE THE ARBITRATION AWARD. THE PARTIES TO THE ARBITRATION SHALL EACH PAY AN EQUAL SHARE OF THE COSTS AND EXPENSES OF SUCH ARBITRATION, AND EACH PARTY SHALL SEPARATELY PAY FOR ITS RESPECTIVE COUNSEL FEES AND EXPENSES; PROVIDED, HOWEVER, THAT THE ARBITRATOR MAY AWARD ATTORNEYS' FEES AND COSTS TO THE PREVAILING PARTY, EXCEPT AS PROHIBITED BY LAW. THE PARTIES HEREBY AGREE TO WAIVE THEIR RIGHT TO HAVE ANY DISPUTE BETWEEN THEM RESOLVED IN A COURT OF LAW BY A JUDGE OR JURY. NOTWITHSTANDING THE FOREGOING, THIS SECTION WILL NOT PREVENT EITHER PARTY FROM SEEKING INJUNCTIVE RELIEF (OR ANY OTHER PROVISIONAL REMEDY) FROM ANY COURT HAVING JURISDICTION OVER THE PARTIES AND THE SUBJECT MATTER OF THEIR DISPUTE RELATING TO THIS AGREEMENT AND THE AGREEMENTS INCORPORATED HEREIN BY REFERENCE. SHOULD ANY PART OF THE ARBITRATION AGREEMENT CONTAINED IN THIS SECTION CONFLICT WITH ANY OTHER ARBITRATION AGREEMENT BETWEEN THE PARTIES, THE PARTIES AGREE THAT THIS ARBITRATION AGREEMENT IN THIS SECTION SHALL GOVERN.

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**Exhibit 10.1**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.<u>Tax Consequences</u>. The Bank makes no representations or warranties with respect to the tax consequences of the consideration provided to Executive or made on Executive's behalf under the terms of this Agreement. Executive agrees and understands that Executive is responsible for payment, if any, of local, state, and/or federal taxes on the consideration provided hereunder by the Bank and any penalties or assessments thereon. Executive further agrees to indemnify and hold the Releasees harmless from any claims, demands, deficiencies, penalties, interest, assessments, executions, judgments, or recoveries by any government agency against the Bank for any amounts claimed due on account of (a) Executive's failure to pay or delayed payment of federal or state taxes, or (b) damages sustained by the Bank by reason of any such claims, including attorneys' fees and costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.<u>Section 409A.</u> It is intended that this Agreement comply with, or be exempt from, Internal Revenue Code Section 409A and the final regulations and official guidance thereunder ("Section 409A") and any ambiguities herein will be interpreted to so comply and/or be exempt from Section 409A. Each payment and benefit to be paid or provided under this Agreement is intended to constitute a series of separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations. Solely to the extent that a delay in payment is required in order to avoid the imposition of any tax under Section 409A, a payment or benefit under this Agreement that arises on account of Executive's "separation from service" (within the meaning of Section 409A), then payment of any amount or benefit provided under this Agreement that is considered to be non-qualified deferred compensation for purposes of Section 409A and that is scheduled to be paid within six (6) months after such separation from service shall be paid without interest on the first business day that is six (6) months and one (1) calendar day following Executive's separation from service. The Bank and Executive will work together in good faith to consider either (i) amendments to this Agreement; or (ii) revisions to this Agreement with respect to the payment of any awards, which are necessary or appropriate to avoid imposition of any additional tax or income recognition prior to the actual payment to Executive under Section 409A. In no event will the Releasees reimburse Executive for any taxes or other costs that may be imposed on Executive as a result of Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.<u>Indemnification</u>. Executive agrees to indemnify and hold harmless the Bank from and against any and all loss, costs, damages, or expenses, including, without limitation, attorneys' fees or expenses incurred by the Bank arising out of the breach of this Agreement by Executive, or from any false representation made herein by Executive, or from any action or proceeding that may be commenced, prosecuted, or threatened by Executive or for Executive's benefit, upon Executive's initiative, direct or indirect, contrary to the provisions of this Agreement. Executive further agrees that in any such action or proceeding, this Agreement may be pled by the Bank as a complete defense, or may be asserted by way of counterclaim or cross-claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.<u>Authority</u>. The Bank represents and warrants that the undersigned has the authority to act on behalf of the Bank and to bind the Bank and all who may claim through it to the terms and conditions of this Agreement. Executive represents and warrants that Executive has the capacity to act on Executive's own behalf and on behalf of all who might claim through Executive to bind them to the terms and conditions of this Agreement. Each Party warrants and represents that there are no liens or claims of lien or assignments in law or equity or otherwise of or against any of the claims or causes of action released herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.<u>Severability</u>. In the event that any provision or any portion of any provision hereof or any surviving agreement made a part hereof becomes or is declared by a court of competent jurisdiction or arbitrator to be illegal, unenforceable, or void, this Agreement shall continue in full force and effect without said provision or portion of provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.<u>Attorneys' Fees</u>. Except with regard to a legal action challenging or seeking a determination in good faith of the validity of the waiver herein under the ADEA, in the event that either

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**Exhibit 10.1**

Party brings an action to enforce or effect its rights under this Agreement, the prevailing Party shall be entitled to recover its costs and expenses, including the costs of mediation, arbitration, litigation, court fees, and reasonable attorneys' fees incurred in connection with such an action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.<u>Entire Agreement</u>. This Agreement represents the entire agreement and understanding between the Bank and Executive concerning the subject matter of this Agreement and Executive's employment with and separation from the Bank and the events leading thereto and associated therewith, and supersedes and replaces any and all prior agreements and understandings concerning the subject matter of this Agreement and Executive's relationship with the Bank, except as otherwise modified or superseded herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.<u>No Oral Modification</u>. This Agreement may only be amended in a writing signed by Executive and the Chair of the Bank's Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.<u>Governing Law</u>. This Agreement shall be governed by federal law and, to the extent applicable, the laws of the State of California, without regard for choice-of-law provisions. For avoidance of doubt, any dispute regarding the enforceability of the "Arbitration" section of this Agreement shall be governed by the FAA. Executive consents to personal and exclusive jurisdiction and venue in the State of California.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.<u>Not Construed Against the Drafter</u>. The essential terms and conditions contained in this Agreement have been mutually negotiated between the Parties. No ambiguity in this instrument shall be construed or interpreted as against the "preparer" of this Agreement, as each of the Parties contributed to drafting the provisions hereof. As such, the Parties agree that the rule of construction that a document be construed more strictly against one Party shall not be applicable. The Parties further agree that in the event of any uncertainty, this Agreement is to be interpreted in a manner that conforms to the requirements the Federal Home Loan Bank Act, rules and regulations promulgated thereunder, Regulatory Interpretations issued by the Federal Housing Finance Agency (the "FHFA") pursuant to the requirements of 12 CFR Part 1211, or any final order issued by the FHFA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.<u>Effective Date</u>. Each Party has seven (7) calendar days after that Party signs this Agreement to revoke it. This Agreement will become effective on the first calendar day on which (a), (b), and (c) have all been satisfied, where (a) means this Agreement has been signed by Executive and the Bank, (b) means the Revocation Period has expired, and (c) means that the Bank has paid Executive all amounts for earned salary and unused vacation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.<u>Counterparts</u>. This Agreement may be executed in counterparts, and each counterpart shall be deemed an original and all of which counterparts taken together shall have the same force and effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned. The counterparts of this Agreement may be executed and delivered by facsimile, photo, email PDF, or other electronic transmission or signature.

*Continued on next page*

Page 9 of 10

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**Exhibit 10.1**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.<u>Voluntary Execution of Agreement</u>. Executive understands and agrees that Executive executed this Agreement voluntarily and without any duress or undue influence on the part or behalf of the Bank or any third party, with the full intent of releasing all of Executive's claims against the Bank and any of the other Releasees. Executive acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Executive has read this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Executive has a right to consult with an attorney regarding this Agreement, and has been represented in the preparation, negotiation, and execution of this Agreement by an attorney of Executive's own choice or has elected not to retain an attorney;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Executive understands the terms and consequences of this Agreement and of the releases it contains;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Executive is fully aware of the legal and binding effect of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Executive has not relied upon any representations or statements made by the Bank that are not specifically set forth in this Agreement.

IN WITNESS WHEREOF, the Parties have signed this Agreement on the respective dates set forth below.

---

| | | | |
|:---|:---|:---|:---|
| | FEDERAL HOME LOAN BANK <br>OF SAN FRANCISCO | | EXECUTIVE |
| By: | /s/ Joseph E. Amato | By: | /s/Anne Segrest McCulloch |
| Joseph E. Amato | Joseph E. Amato | Anne Segrest McCulloch | Anne Segrest McCulloch |
| Interim President and Chief Executive Officer | Interim President and Chief Executive Officer |  |  |
| Date: | 5/9/2025 | Date: | 5/5/2025 |

---

Page 10 of 10

## Exhibit 10.3

**Exhibit 10.3**

**EXECUTIVE INCENTIVE PLAN**

**as Amended and Restated March 28, 2025**

Page 1 of 17

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**Exhibit 10.3**

**FEDERAL HOME LOAN BANK OF SAN FRANCISCO**

**EXECUTIVE INCENTIVE PLAN**

**<u>**TABLE OF CONTENTS**</u>**

---

| | | |
|:---|:---|:---|
| | | **<u>PAGE</u>** |
| **ARTICLE I** | **INTRODUCTION** | **1** |
| Section 1.1 | Purpose | 1 |
| Section 1.2 | Effective Date | 1 |
| Section 1.3 | Supplements | 1 |
| **ARTICLE II** | **ELIGIBILITY AND PARTICIPATION** | **1** |
| Section 2.1 | Eligibility | 1 |
| Section 2.2 | Participation | 1 |
| **ARTICLE III** | **AWARDS** | **2** |
| Section 3.1 | Awards | 2 |
| Section 3.2 | Performance Goals and Qualifiers | 3 |
| Section 3.3 | Vesting of Awards for Participants | 4 |
| Section 3.4 | Effect of Termination of Employment | 5 |
| Section 3.5 | Effect of Change in Control | 8 |
| Section 3.6 | Payment of Awards | 9 |
| Section 3.7 | Reduction or Forfeiture of Awards | 10 |
| **ARTICLE IV** | **ADMINISTRATION** | **11** |
| Section 4.1 | Appointment of the President and CEO | 11 |
| Section 4.2 | Powers and Responsibilities of the Administrator | 11 |
| Section 4.3 | Income and Employment Tax Withholding | 12 |
| Section 4.4 | Plan Expenses | 12 |
| **ARTICLE V** | **BENEFIT CLAIMS** | **12** |
| **ARTICLE VI** | **AMENDMENT AND TERMINATION OF THE PLAN** | **12** |
| Section 6.1 | Amendment of the Plan<br>12 | 12 |
| Section 6.2 | Termination of the Plan | 12 |

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Page 2 of 17

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**Exhibit 10.3**

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| | | |
|:---|:---|:---|
| **ARTICLE VII** | **MISCELLANEOUS** | **12** |
| Section 7.1 | Governing Law | 12 |
| Section 7.2 | Headings and Gender | 13 |
| Section 7.3 | Spendthrift Clause | 13 |
| Section 7.4 | Counterparts | 13 |
| Section 7.5 | No Enlargement of Employment Rights | 13 |
| Section 7.6 | Limitations on Liability | 13 |
| Section 7.7 | Incapacity of Participant | 13 |
| Section 7.8 | Evidence | 14 |
| Section 7.9 | Action by Bank | 14 |
| Section 7.10 | Severability | 14 |
| Section 7.11 | Information to be Furnished by a Participant | 14 |
| Section 7.12 | Attorneys' Fees | 14 |
| Section 7.13 | Binding on Successors | 14 |

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Page 3 of 17

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**Exhibit 10.3**

**ARTICLE I**

**<u>INTRODUCTION</u>**

<u>Section 1.1</u> <u>Purpose</u>. The purpose of the Federal Home Loan Bank of San Francisco Executive Incentive Plan (the "Plan") is to attract and retain key executives of the Federal Home Loan Bank of San Francisco (the "Bank") and to motivate and focus their efforts on achieving the Bank's business plan and accomplish its goals and objectives while maintaining the safety and soundness of the Bank. The Plan is a cash-based incentive plan that provides award opportunities based on achievement of performance goals.

<u>Section 1.2</u> <u>Effective Date</u>. The "Effective Date" of the Amended and Restated Plan is September 26, 2024.

<u>Section 1.3</u> <u>Supplements</u>. The provisions of the Plan may be modified by supplements to the Plan that are approved by the Board of Directors (the "Board") or a committee delegated by the Board. The terms and provisions of each supplement are a part of the Plan and supersede any other provisions of the Plan to the extent necessary to eliminate any inconsistencies between the supplement and any other Plan provisions.

**ARTICLE II**

**<u>ELIGIBILITY AND PARTICIPATION</u>**

<u>Section 2.1</u> <u>Eligibility</u>. The President and CEO, each Executive Vice President and any other senior executive designated by the Board, who is hired/employed as a regular full-time employee before October 1st of the calendar year, will become a "Participant" in the Plan. A senior executive that is hired or promoted after January 1 of a calendar year will be eligible for Awards on a prorated basis for that calendar year. Notwithstanding the foregoing, the Executive Vice President and Chief Audit Executive is not eligible to participant in this Plan, but will be eligible, subject to approval of the Board, to participate in the Federal Home Loan Bank of San Francisco Executive Internal Audit Incentive Plan. Participants must have an executed agreement on file with the Bank containing non-disclosure, non-disparagement, and non-solicitation provisions in a form approved by the Bank from time to time ("Non-Solicitation Agreement").

<u>Section 2.2</u> <u>Participation</u>. A senior executive officer will become a Participant as of the later of the Effective Date, the senior executive officer's date of hire/employment, or the date on or after the Effective Date the senior executive officer

Page 4 of 17

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**Exhibit 10.3**

satisfies the automatic eligibility provisions described in Section 2.1. Any Participant may be removed as an active Participant by the Board effective as of any date.

**ARTICLE III**

**<u>AWARDS</u>**

<u>Section 3.1</u> <u>Awards</u>. No later than the beginning of each Performance Period, the Board will establish in writing the terms and conditions of Performance Goals (as defined in Section 3.2 for eligible Participants) for each applicable Performance Period. As described in this Article, Awards may be Annual Awards (as defined in subsection 3.3(a)) or Deferred Awards (as defined in subsection 3.1(b)). Each Award will be equal to a percentage of the Participant's annual Compensation. "Compensation" means the Participant's average annual base salary for the Performance Period.

(a) <u>Performance Periods</u>. A "Performance Period" is the one-calendar-year period starting on January 1 and ending on December 31 over which an Annual Award can be earned and vested pursuant to subsection 3.3(a). A "Deferral Performance Period" is the three-calendar-year period over which a Deferred Award can vest pursuant to subsection 3.3(b). A Deferral Performance Period begins on the January 1st immediately following the applicable Performance Period.

(b) <u>Award Levels</u>. The "Award Level" shall be set forth as a percentage of the Participant's Compensation as noted in the Award Level table below. Participants are eligible to receive an Annual Award for each Performance Period, subject to deferral of fifty percent (50%) of the Annual Award (the "Deferred Award") over the Deferral Performance Period. The amount of the Annual Award may be modified at the Board's discretion to account for individual performance that is not captured in the Participant's individual goals, whether positive or negative, by applying an award multiplier to an Award Level (100% being no modification), but in no event shall this result in an Award Level that is less than the Minimum Achievement Level (as defined in Section 3.2(a)(i)) nor an Award Level that is greater than the Maximum Achievement Level (as defined in Section 3.2(a)(iii)). The Board may, in its sole discretion, adjust the Award Levels prior to any Performance Period.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Total Annual Award**<br>**as % of Compensation** | **Total Annual Award**<br>**as % of Compensation** | **Total Annual Award**<br>**as % of Compensation** | **Year-End Award**<br>**as % of Compensation** | **Year-End Award**<br>**as % of Compensation** | **Year-End Award**<br>**as % of Compensation** | **Deferred Award**<br>**as % of Compensation** | **Deferred Award**<br>**as % of Compensation** | **Deferred Award**<br>**as % of Compensation** |
| **Title** | **Minimum** | **Target** | **Maximum** | **Minimum** | **Target** | **Maximum** | **Minimum** | **Target** | **Maximum** |
| CEO | 50% | 80% | 100% | 25% | 40% | 50% | 25% | 40% | 50% |
| EVP/SVP | 40% | 65% | 85% | 20% | 32.5% | 42.5% | 20% | 32.5% | 42.5% |

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Page 5 of 17

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**Exhibit 10.3**

(c) <u>Final Award</u>. The "Final Award" is the amount of an earned and vested Annual Award and Deferred Award, as may be adjusted based upon the level at which the Performance Goals and Qualifiers (as defined in Sections 3.2 and 3.2(d)) have been achieved, that is ultimately paid to a Participant under the Plan. The amount of a Final Award may be modified at the Board's discretion to account for performance that is not captured in the relevant Performance Goals and Qualifiers for the applicable Award. The Board, in its discretion, may also consider Extraordinary Occurrences when assessing performance results and determining Final Awards. "Extraordinary Occurrences" mean those events that, in the opinion and discretion of the Board, are outside the significant influence of the Participant or the Bank and are likely to have a significant unanticipated effect, whether positive or negative, on the Bank's operating and/or financial results.

<u>Section 3.2</u> <u>Performance Goals</u>. "Performance Goals" are the factors established by the Board for each Performance Period, which are taken into consideration in determining the amount of an Achievement Level. The Board may adjust the Performance Goals for a Performance Period to ensure the purposes of the Plan are served.

(a) <u>Achievement Levels</u>. Three achievement levels ("Achievement Levels") will apply for each Performance Goal in determining how much of an Award is earned as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Minimum</u>. Minimum level of performance that must be achieved for any awards to be paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Target</u>. Performance that is expected under the Bank's Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Maximum</u>. A most optimistic level of performance that substantially exceeds expected performance.

(b) <u>Interpolation</u>. Achievement Levels between the defined percentages for Minimum, Target and, Maximum will be interpolated in a manner as determined at the sole discretion of the Board.

(c) <u>Considerations in Establishing Performance Goals and Qualifiers</u>. In determining appropriate Performance Goals and Qualifiers and the relative weight of each Performance Goal, the Board will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Balance risk and financial results in a manner that does not encourage Participants to expose the Bank to imprudent risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Make such determination in a manner designed to ensure that a Participant's overall compensation is balanced and not excessive in amount and that the Annual Awards and Deferred Awards are consistent with the Bank's policies regarding such compensation arrangements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Monitor the success of the Performance Goals and Qualifiers and weighting established in prior years, alone and in combination with other incentive compensation awarded to the same Participants, and make

Page 6 of 17

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**Exhibit 10.3**

appropriate adjustments in future calendar years as needed so that payments appropriately incentivize Participants, appropriately reflect risk and align with regulatory guidance.

The Deferred Award "Applicable Interest Rate" in Section 3.3(c) of the EIP shall be the Bank's Return on Capital (ROC) based on GAAP income and capital measured for the relevant calendar year of a Deferral Performance Period. The Applicable Interest Rate will be measured and applied separately for each calendar year that is part of a Deferral Performance Period. For example, the ROC measured for 2024 will be the Applicable Interest Rate applied to the amount of a Participant's Deferred Award(s) beginning January 1, 2024, and ending December 31, 2024, and the ROC measured for 2025 will be the Applicable Interest Rate applied to a Participant's Deferred Award(s) beginning January 1, 2025, and ending on December 31, 2025.

(d) <u>Qualifiers</u>. The "Qualifiers" for the each Performance Period and Deferral Performance Period for any Award means: (i) no submission of material information to a regulatory or a reporting agency is significantly past due; (ii) the Bank makes sufficient progress, as determined by the Board, in the timely remediation of significant examination, monitoring and other supervisory findings; (iii) no material risk-management deficiency exists at the Bank; (iv) no operational errors or omissions result in material revisions to the financial results, information submitted to the Federal Housing Finance Agency ("FHFA") or data used to determine incentive payouts; (v) the Bank has sufficient capital to pay dividends and the ability to repurchase member stock, and (vi) the Bank maintains a GAAP income and capital ratio of at least 4.25%.

(e) <u>Distribution of Performance Goals</u>. A copy of the Performance Goals for the Performance Period will be provided to Participants following approval by the Board.

<u>Section 3.3</u> <u>Vesting of Awards for Participants</u>.

(a) <u>Vesting of Annual Awards</u>. An "Annual Award" is defined as an Award earned for service during a Performance Period. For each Performance Period, fifty percent (50%) of an Annual Award to a Participant will become vested on the last day of the Performance Period, provided the Board determines the following requirements are met ("Year-End Award"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The applicable Performance Goals and Qualifiers for the Performance Period are achieved;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Participant received a satisfactory (at least meets Target expectations) performance rating for the Performance Period; and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Participant is actively employed on the last day of the Performance Period, except as otherwise provided in subsection 3.4(b) or 3.4(c) or Section 3.5.

Page 7 of 17

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**Exhibit 10.3**

(b) <u>Vesting of Deferred Awards</u>. The remaining fifty percent (50%) of an Annual Award (i.e. Deferred Award) to a Participant will become vested on the last day of the Deferral Performance Period, provided the Board determines that the following requirements are met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The applicable Qualifiers for the Deferral Performance Period are satisfied; provided, however, unless otherwise determined by the Board, failure to satisfy the regulatory capital ratio for a calendar year will result in a one-third (1/3) reduction of the vesting of the applicable Deferred Award outstanding during that calendar year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Participant received a satisfactory (at least meets Target expectations) performance rating for the Deferral Performance Period, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Participant is actively employed on the last day of the Deferral Performance Period, unless otherwise provided in subsection 3.4(b) or 3.4(c) or Section 3.5.

(c) <u>Calculation of Awards</u>. The amount of Final Awards to Participants will be determined at the sole discretion of the Board in accordance with the applicable Performance Period Goals, Qualifiers & Awards Scale for the applicable Performance Period. If the Qualifiers are achieved, then the Applicable Interest Rate is applied to Deferred Awards; provided, however, the amount of the Final Awards payable in a particular calendar year shall not exceed the Participant's base salary as of the end of the applicable Performance Period and Deferral Performance Period for the Final Awards payable ("Plan Year Base Salary"). For the avoidance of doubt, the amount of the Final Awards payable shall mean the amount of: (a) the Year-End Award earned and vested in a particular calendar year; and (b) the Deferred Award that is vested in the same calendar year plus the interest credited to the Deferred Award. If the amount of the Final Awards payable in a particular calendar year exceeds the Participant's Plan Year Base Salary, then the amount of the Final Award payable in that particular calendar year shall be reduced so that the amount of the Final Awards payable does not exceed the Participant's Plan Year Base Salary. For example, if a Participant (1) vests at the end of 2025 in both the Year-End Award for the 2025 Performance Period and the Deferred Award for the 2022 Deferral Performance Period, (2) earns the Applicable Interest Rate applied to the Deferred Award (all together such Year-End Award, Deferred Award and interest are the "2025 Final Awards" payable in the aggregate in March 2026) and (3) the 2025 Final Awards exceed the Participant's 2025 Plan Year Base Salary, then the amount payable shall be reduced so that the 2025 Final Awards do not exceed the Participant's 2025 Plan Year Base Salary.

<u>Section 3.4</u> <u>Effect of Termination of Employment</u>.

(a) <u>In General</u>. If a Participant incurs a Termination of Employment for any reason other than a reason set forth in subsection 3.4(b) or 3.4(c) or Section 3.5, the Participant's unvested Awards will be forfeited effective as of the date of such Termination of Employment and the Bank will have no obligation to pay the Participant any portion of such forfeited, unvested Award amounts.

Page 8 of 17

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**Exhibit 10.3**

(b) <u>Termination Due to Death or Disability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding the provisions of Sections 3.3 and subsection 3.4(a), if a Participant incurs a Termination of Employment due to death or Disability during a Deferral Performance Period, then the Participant's Deferred Awards will be treated as vested and shall be paid pursuant to Section 3.6(a)(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding the provisions of Sections 3.3 and subsection 3.4(a), if a Participant incurs a Termination of Employment during a Performance Period due to death or Disability, any Annual Award which has not been vested for the year of the Participant's Termination of Employment due to death or Disability, will be treated as vested for the portion of the Performance Period during which the Participant was employed based on the assumption the Bank would have achieved the Performance Goals and Qualifiers at the Target Achievement Level for the Performance Period.

(c) <u>Termination Due to Other Events</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to Section 3.6(a)(ii), but notwithstanding the provisions of Sections 3.3 and subsection 3.4(a), if a Participant incurs a Termination of Employment during a Performance Period or Deferral Performance Period due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) retirement, but after March 31 of such Performance Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) a termination by Participant for Good Reason;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) a termination by the Bank without Cause due to the elimination of an individual job or position;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the elimination of one or more jobs or positions as a result of a reduction in force or department reorganization; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) a substantial job modification resulting in the incumbent being, in the judgment of the Bank, unqualified for or unable to perform the revised job;

then a pro rata portion of the amount of the Annual Award determined by the Board based on satisfaction of the Performance Goals and Qualifiers for the Performance Period will be treated as vested based on the portion of the Performance Period during which the Participant was employed, and a Deferred Award will be treated as fully vested as of the date of Termination of Employment. The amount of any payment of any Award pursuant to this Section 3.4(c) will be subject to adjustment based on achievement of the Qualifiers and paid according to the normal scheduled date under Section 3.6(b).

Page 9 of 17

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**Exhibit 10.3**

(d) <u>Definitions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "Cause" means (A) continued failure of a Participant to perform his or her duties with the Bank (other than any such failure resulting from Disability), (B) personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, or willful violation of any law, rule or regulation (other than -traffic infractions or similar non-violent infractions), or (C) removal of the Participant for cause by the FHFA or at the direction of the FHFA pursuant to 12 U.S.C. 1422b(a)(2), or by any successor agency to the FHFA pursuant to a similar statute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "Disability" means the Participant is: (A) unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months; or (B) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under the Bank's long-term disability plan. Medical determination of Disability under (A) shall be made by the Social Security Administration. The Participants may be required to submit proof of the determination by the Social Security Administration or the Bank's insurer, as applicable, upon the request of the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "Good Reason" means a Termination of Employment by a Participant under any of the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) a material change in the Participant's status, position and job title or principal duties and responsibilities as a key employee of the Bank which does not represent a promotion from the Participant's status and position as in effect as of the date hereof ("Position");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the assignment to the Participant of any duties or responsibilities (or removal of any duties or responsibilities), which assignment or removal is materially inconsistent with such Position;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any removal of the Participant from such Position (including, without limitation, all demotions), except in connection with the termination of the Participant's employment for Cause or Disability, or as a result of the Participant's death; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) any material breach by the Bank of any provisions of this Plan or any agreement under which the Participant provides services to the Bank.

Page 10 of 17

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**Exhibit 10.3**

Notwithstanding the foregoing in this Section 3.4(d)(iii), a Participant shall not be considered to have a Termination of Employment for Good Reason unless the Participant provides the Bank with written notice no later than 90 calendar days after the first occurrence of an event listed above and the Bank has a period of 30 calendar days to cure such event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "Reduction in Force" means an involuntary Termination of Employment of a Participant by the Bank in connection with a financial and/or strategic decision by the Bank to reduce the number of Bank employees and not due to the Participant's performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "Retirement" means the Participant's planned and voluntary termination of employment on or after the Participant has either: (A) attained age 55 with 10 years of service or (B) attained age 65 with 5 years of service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) "Termination of Employment" or "Terminates Employment" means the Participant's "separation from service" within the meaning of Treasury Regulation Section 1.409A-1(h). Whether a Termination of Employment has occurred is based on whether the facts and circumstances indicate that the Participant and the Bank reasonably anticipated that no further services would be performed after a certain date. A Termination of Employment will not be deemed to have occurred if a Participant continues to provide services to the Bank as an employee, independent contractor or otherwise, and if the Participant is providing such services at an annual rate that is fifty percent (50%) or more of the services rendered, on average, during the immediate preceding 36 months with the Bank (or if less, such lesser period); provided, however, that a Termination of Employment will be deemed to have occurred if a Participant's service with the Bank is reduced to an annual rate that is equal to or less than twenty percent (20%) of the services rendered, on average, during the immediately preceding 36 months with the Bank (or if less, such lesser period). In addition to the foregoing, the employment of a Participant shall not be deemed to be terminated while the Participant is on military leave, sick leave or other bona fide leave of absence if the period of such leave does not exceed six (6) months, or if longer, so long as the Participant's right to reemployment with the Bank is provided by either statute or contract. If the period of leave exceeds six (6) months and the Participant's right to reemployment is not provided by either statute or contract, then the Participant is deemed to have a Termination of Employment on the first day immediately following such six-month period.

<u>Section 3.5</u> <u>Effect of Change in Control</u>.

(a) Notwithstanding the provisions of Sections 3.3 and 3.4, if a Change in Control of the Bank occurs prior to the date of vesting of an Award, then an Annual Award will be paid on a pro-rated basis based on the assumption the Bank would have achieved the Performance Goals and Qualifiers at the Target Achievement Level for the Performance Period, while any Deferred Award which has not otherwise become vested as of the date of the Change in Control will be treated as one hundred percent (100%) vested effective as of the date of the Change in Control. Any interest accrued on the Deferred Award through the Change in Control date will be added to the Final Award.

Page 11 of 17

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**Exhibit 10.3**

(b) "Change in Control" of the Bank will mean the occurrence at any time of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) merger, reorganization, or consolidation of the Bank with or into another Federal Home Loan Bank or other entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) sale or transfer of all or substantially all of the business or assets of the Bank to another Federal Home Loan Bank or other entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) purchase by the Bank or transfer to the Bank of all or substantially all of the business or assets of another Federal Home Loan Bank; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) liquidation of the Bank.

The term "reorganization" shall not include any reorganization that is mandated by federal statute, rule, regulation, or directive, including 12 U.S.C. § 1421, *et seq.,* as amended, and 12 U.S.C. § 4501 *et seq.,* as amended, and which the Director of the FHFA (or successor agency) has determined should not be a basis for making payment under this Plan, by reason of the capital condition of the Bank or because of unsafe or unsound acts, practices, or condition ascertained in the course of the Agency's supervision of the Bank or because any of the conditions identified in 12 U.S.C. § 4617(a)(3) are met with respect to the Bank (which conditions do not result solely from the mandated reorganization itself, or from action that the Agency has required the Bank to take under 12 U.S.*C.* § 1431(d)).

<u>Section 3.6</u> <u>Payment of Awards</u>.

(a) <u>Payments Related to Termination of Employment</u>. The following provisions apply to Final Awards payable as a result of a Termination of Employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In the event of a Termination of Employment due to death or Disability, one hundred percent (100%) of a Final Award will be paid in a single sum within 74 calendar days of the end of the calendar year in which occurred the Participant's Termination of Employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In the event of a Termination of Employment Due to Other Events, payment of a Final Award will be made in a single sum within 74 calendar days following the end of the Performance Period or Deferral Performance Period, as applicable. Notwithstanding the foregoing, in the event of an elimination of an individual job or position, a reduction in force or department reorganization, or a substantial job modification resulting in the incumbent being unqualified for or unable to perform the revised job, a Participant must execute and not revoke (to the extent the Participant has such right) the severance and general release agreement offered by the Bank in order to be eligible to receive payment.

Page 12 of 17

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**Exhibit 10.3**

(b) <u>Payments Not Related to a Termination of Employment</u>. Final Awards which become vested for reasons other than a Termination of Employment will be paid in a single sum within 74 calendar days following the end of the Performance Period or Deferral Performance Period, as applicable.

(c) Notwithstanding the foregoing provisions of this Section, Final Awards will be paid upon approval by the Board. However, in the event of a Change in Control, payment of a Final Award will be made in a single sum on the date on which the Change in Control occurs; provided however, if a Participant is eligible for Retirement as of the date of a Change in Control, then the Final Award of such Participant shall be made no sooner than the earliest to occur of (i) a change in the ownership or effective control of the Bank, or in the ownership of a substantial portion of the assets of the Bank, as defined under Treasury Regulation Section 1.409A-3(i)(5); (ii) the Participant's Termination of Employment; or (iii) the payment date under Section 3.6(b) of this Plan.

<u>Section 3.7</u> <u>Reduction or Forfeiture of Awards</u>.

(a) By resolution, the Board may reduce or eliminate any Award not yet paid, if the Board finds that a serious, material safety-soundness problem, or a serious, material risk-management deficiency exists at the Bank, or if: (i) errors or omissions result in material revisions to the Bank's financial results, information submitted to a regulatory or a reporting agency, or information used to determine incentive compensation payouts; (ii) information submitted to a regulatory or a reporting agency is untimely; or, (iii) the Bank does not make appropriate progress, as determined by the Board, in the timely remediation of examination, monitoring, or other supervisory findings and matters requiring attention.

(b) If during the Deferral Performance Period actual losses or other measures or aspects of performance related to the Performance Period or Deferral Performance Period are realized which would have caused a reduction in amount of the Final Award calculated for the Performance Period or Deferral Performance Period, then the remaining amount of the Final Award to be paid at the end of the applicable Deferral Performance Period may be reduced to reflect this additional information.

(c) Notwithstanding any other provision of the Plan, if a Participant breaches the terms of a Non-Solicitation Agreement, all of his/her unpaid vested and unvested Awards may be forfeited as of the effective date of the Board's determination that such breach has occurred, which effective date shall be no sooner than the expiration of the cure period under Section 3.7(e) below. Any future payments for a vested Award will cease and the Bank will have no further obligation to make such payments.

(d) Notwithstanding any other provision of the Plan, if during the most recent examination of the Bank by the FHFA, the FHFA identified an unsafe or unsound practice or condition that is material to the financial operation of the Bank within the Participant's area(s) of responsibility and such unsafe or unsound practice or condition is not subsequently resolved to the satisfaction of the Board, then upon expiration of the cure period under Section 3.7(e) below all or a portion of a

Page 13 of 17

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**Exhibit 10.3**

Participant's vested and unvested Awards may be forfeited as determined in the sole discretion of the Board. Any future payments for a vested Award will cease and the Bank will have no further obligation to make such payments.

(e) Notwithstanding any provision of this Section 3.7 to the contrary, prior to any reduction, elimination or forfeiture of any Participant Award, the applicable Participant shall be given notice of the determination under this Section 3.7 to reduce, eliminate or forfeit the Award and such Participant shall have a period of no less than 30 calendar days to present information contrary to such decision or information showing that the issue or event causing the reduction, elimination or forfeiture has been cured to the satisfaction of the Board.

**ARTICLE IV**

**<u>ADMINISTRATION</u>**

<u>Section 4.1</u> <u>Appointment of the President and CEO</u>. Except for those powers expressly reserved to the Board, including determinations regarding eligibility and the amount of all Awards, under the Plan, the President and CEO, or a duly authorized officer of the Bank delegated by the President and CEO to act on his or her behalf, is hereby appointed to administer the Plan (the "Administrator"), and the President and the Administrator will be charged with the full power and the responsibility for administering the Plan in all its details.

<u>Section 4.2</u> <u>Powers and Responsibilities of the Administrator</u>. The Administrator will have all powers necessary to administer the Plan, including the power to construe and interpret the Plan document; to determine the manner and timing of any distribution of benefits under the Plan; to resolve any claim for benefits in accordance with Article V, and to appoint or engage advisors, including legal counsel, to render advice with respect to any of the Administrator's responsibilities under the Plan. Any construction, interpretation, or application of the Plan by the Administrator will be final, conclusive and binding.

(a) <u>Records and Reports</u>. The Bank will be responsible for maintaining sufficient records to determine each Participant's eligibility to participate in the Plan.

(b) <u>Rules and Decisions</u>. The Bank may adopt such rules as it deems necessary, desirable, or appropriate in the administration of the Plan. All rules and decisions of the Bank will be applied uniformly and consistently to all Participants in similar circumstances. When making a determination or calculation, the Board and the Bank will be entitled to rely upon information furnished by a Participant, the Bank or the legal counsel of the Bank.

(c) <u>Application for Benefits</u>. The Bank may require a Participant to complete and file with it an application for a benefit, and to furnish all pertinent information requested by it. The Bank may rely upon all such information so furnished to it, including the Participant's current mailing address. Any notice or document required to be given or filed with the

Page 14 of 17

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**Exhibit 10.3**

Bank will be properly given or filed if delivered to or mailed by registered mail, postage paid, to the Chief Human Resources Officer, Federal Home Loan Bank of San Francisco, P.O. Box 7948, San Francisco, CA 94108.

<u>Section 4.3</u> <u>Income and Employment Tax Withholding</u>. The Bank will withhold from payments to Participants of their Awards, to the extent required by law, all applicable federal, state, city and local taxes.

<u>Section 4.4</u> <u>Plan Expenses</u>. The expenses incurred for the administration and maintenance of the Plan will be paid by the Bank.

**ARTICLE V**

**<u>BENEFIT CLAIMS</u>**

While a Participant need not file a claim to receive his or her Award under the Plan, if he/she wishes to do so, a claim must be made in writing and filed with the Administrator (a claim by the President and CEO shall be filed with the Board). If a claim is denied, the Administrator will furnish the claimant with written notice of its decision. A claimant may request a full and fair review of the denial of a claim for awards by filing a written request with the Administrator.

**ARTICLE VI**

**<u>AMENDMENT AND TERMINATION OF THE PLAN</u>**

<u>Section 6.1</u> <u>Amendment of the Plan</u>. The Bank, acting through the Board, may amend the Plan at any time in its sole discretion. Notwithstanding the foregoing, the Bank may not amend the Plan to reduce a Participant's vested Award as determined on the day preceding the effective date of the amendment or to otherwise retroactively impair or adversely affect the rights of a Participant.

<u>Section 6.2</u> <u>Termination of the Plan</u>. The Bank, acting through the Board, may terminate the Plan at any time in its sole discretion. Absent an amendment to the contrary, Plan benefits that were earned and vested prior to the termination will be paid at the times and in the manner provided for by the Plan at the time of the termination.

**ARTICLE VII**

**<u>MISCELLANEOUS</u>**

<u>Section 7.1</u> <u>Governing Law</u>. Except to the extent superseded by laws of the United States, the laws of California will be controlling in all matters relating to the Plan without regard to the choice of law principles therein. The Plan shall be construed in a manner that is consistent and compliant with, or exempt from, Section 409A of the Internal Revenue Code

Page 15 of 17

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**Exhibit 10.3**

of 1986, as amended (the "Code") and any regulations promulgated thereunder. Any provision that is noncompliant with Section 409A of the Code is void or deemed amended to comply with Section 409A of the Code. The Plan is to be construed as a totally discretionary plan. This Plan shall be administered and interpreted to maximize the short-term deferral exemption to Code Section 409A, and a Participant shall not, directly or indirectly, designate the taxable year of an award payment under this Plan. The portion of any payment under this Plan that is paid within the short-term deferral period (within the meaning of Code Section 409A) shall be treated as a short-term deferral and not aggregated with other payments. To the extent applicable, any payment dates or events provided for in this Plan shall be deemed to incorporate any "grace periods" within the meaning of Code Section 409A. The Bank does not guarantee or warrant the tax consequences of the Plan, and the Participants shall in all cases be liable for any taxes due with respect to the Plan.

<u>Section 7.2</u> <u>Headings and Gender</u>. The headings and subheadings in the Plan have been inserted for convenience of reference only and will not affect the construction of the Plan provisions. In any necessary construction, the masculine will include the feminine and the singular the plural, and vice versa.

<u>Section 7.3</u> <u>Spendthrift Clause</u>. No benefit or interest available under the Plan will be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or attachment by creditors of a Participant, either voluntarily or involuntarily.

<u>Section 7.4</u> <u>Counterparts</u>. This Plan may be executed in any number of counterparts, each one constituting but one and the same instrument, and may be sufficiently evidenced by any one counterpart.

<u>Section 7.5</u> <u>No Enlargement of Employment Rights</u>. Nothing contained in the Plan is intended to alter a Participant's "at will" employment and is not to be construed as a contract of employment between the Bank and any person, nor may the Plan be deemed to give any person the right to be retained in the employ of the Bank or limit the right of the Bank to employ or discharge any person with or without cause.

<u>Section 7.6</u> <u>Limitations on Liability</u>. The individual members of the Board will, in accordance with the Bank's by-laws, be indemnified and held harmless by the Bank with respect to any alleged breach of responsibilities performed or to be performed hereunder. In addition, notwithstanding any other provision of the Plan, neither the Bank nor any individual acting as an employee or agent of the Bank will be liable to a Participant for any claim, loss, liability or expense incurred in connection with the Plan, except when the same has been affirmatively determined by a court order or by the affirmative and binding determination of an arbitrator, to be due to the gross negligence or willful misconduct of that person.

<u>Section 7.7</u> <u>Incapacity of Participant</u>. If any person entitled to receive a distribution under the Plan is physically or mentally incapable of personally receiving and giving a valid receipt for any payment due (unless a prior claim for the distribution has been made by a duly qualified guardian or other legal representative), then, unless and until a claim for the distribution has been made by a duly appointed guardian or other legal representative of the person, the distribution may be

Page 16 of 17

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**Exhibit 10.3**

made to any other individual or institution then contributing toward or providing for the care and maintenance of the person. Any payment made for the benefit of the person under this Section will be a payment for the account of such person and a complete discharge of any liability of the Bank and the Plan.

<u>Section 7.8</u> <u>Evidence</u>. Evidence required of anyone under the Plan may be by certificate, affidavit, document or other information which the person relying on the evidence considers pertinent and reliable, and signed, made or presented by the proper party or parties.

<u>Section 7.9</u> <u>Action by Bank</u>. Any action required of or permitted by the Bank under the Plan will be by resolution of the Board or by a person or persons authorized by resolution of the Board.

<u>Section 7.10</u> <u>Severability</u>. In the event any provisions of the Plan are held to be illegal or invalid for any reason, the illegality or invalidity will not affect the remaining parts of the Plan, and the Plan will be construed and endorsed as if the illegal or invalid provisions had never been contained in the Plan.

<u>Section 7.11</u> <u>Information to be Furnished by a Participant</u>. A Participant, or any other person entitled to benefits under the Plan, must furnish the Bank with any and all documents, evidence, data or other information the Bank considers necessary or desirable for the purpose of overseeing and administering the Plan. Benefit payments under the Plan are conditioned on a Participant (or other person who is entitled to benefits) furnishing full, true and complete data, evidence or other information to the Bank, and on the prompt execution of any document reasonably related to the administration of the Plan requested by the Bank.

<u>Section 7.12</u> <u>Attorneys' Fees</u>. If any action is commenced to enforce the provisions of the Plan, payment of attorneys' fees will be governed by the terms set forth in the "Agreement to Arbitrate" entered into between the Bank and the Participant.

<u>Section 7.13</u> <u>Binding on Successors</u>. The Plan will be binding upon and inure to the benefit of the Bank and its successors and assigns, and the successors, assigns, designees and estates of a Participant. The Plan will also be binding upon and inure to the benefit of any successor organization succeeding to substantially all of the assets and business of the Bank, but nothing in the Plan will preclude the Bank from merging or consolidating into or with, or transferring all or substantially all of its assets to, another organization which assumes the Plan and all obligations of the Bank hereunder. The Bank agrees that it will make appropriate provision for the preservation of a Participant's rights under the Plan in any agreement or plan which it may enter into to effect any merger, consolidation, reorganization or transfer of assets. Upon such a merger, consolidation, reorganization or transfer of assets and assumption of Plan obligations of the Bank, the term "Bank" will refer to such other organization and the Plan will continue in full force and effect.

Page 17 of 17

## Exhibit 31.1

**EXHIBIT 31.1**

**Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

**for the Interim President and Chief Executive Officer**

I, Joseph E. Amato, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the period ended June 30, 2025, of the Federal Home Loan Bank of San Francisco;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| August 1, 2025 | /S/ JOSEPH E. AMATO |
| | **Joseph E. Amato**<br>**Interim President and Chief Executive Officer** |

---

## Exhibit 31.2

**EXHIBIT 31.2**

**Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

**for the Chief Financial Officer**

I, Michael S. Hennessy, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the period ended June 30, 2025, of the Federal Home Loan Bank of San Francisco;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| August 1, 2025 | /S/ MICHAEL S. HENNESSY |
| | **Michael S. Hennessy<br>Executive Vice President and Chief Financial Officer** |

---

## Exhibit 32.1

**EXHIBIT 32.1**

**Certification by the Interim President and Chief Executive Officer**

**Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**

I, Joseph E. Amato, Interim President and Chief Executive Officer of the Federal Home Loan Bank of San Francisco ("Registrant"), certify that, to the best of my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Registrant's Quarterly Report on Form 10-Q for the period ended June 30, 2025, ("Report") fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

---

| | |
|:---|:---|
| August 1, 2025 | /S/ JOSEPH E. AMATO |
| | **Joseph E. Amato**<br>**Interim President and Chief Executive Officer** |

---

A signed original of this written statement required by Section 906 has been provided to the Federal Home Loan Bank of San Francisco and will be retained by the Federal Home Loan Bank of San Francisco and furnished to the Securities and Exchange Commission or its staff upon request.

## Exhibit 32.2

**EXHIBIT 32.2**

**Certification by the Chief Financial Officer**

**Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**

I, Michael S. Hennessy, Executive Vice President and Chief Financial Officer of the Federal Home Loan Bank of San Francisco ("Registrant"), certify that, to the best of my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Registrant's Quarterly Report on Form 10-Q for the period ended June 30, 2025, ("Report") fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

---

| | |
|:---|:---|
| August 1, 2025 | /S/ MICHAEL S. HENNESSY |
| | **Michael S. Hennessy<br>Executive Vice President and Chief Financial Officer** |

---

A signed original of this written statement required by Section 906 has been provided to the Federal Home Loan Bank of San Francisco and will be retained by the Federal Home Loan Bank of San Francisco and furnished to the Securities and Exchange Commission or its staff upon request.

<br>