Federal Home Loan Bank of San Francisco
Federal Home Loan Bank of San Francisco reports $64 million net income for Q3 2026
- Form
- 10-Q
- Filed
- Importance
- Notable
- Accession
- 0001316944-26-000181
- Cash and equivalents: $18 million as of September 30, 2026
- Net income: $64 million for the three months ended September 30, 2026
- Total assets: $66.6 billion as of September 30, 2026
- Total liabilities: $59.4 billion as of September 30, 2026
Written from the 10-Q on EDGAR. AI can make mistakes. Check the filing.
What changed
8 changes since the June 2026 10-Q
Compared with the 10-Q 0001316944-26-000134, filed Aug 5, 2026.
The $22 million increase in discretionary housing and community investment contributions was primarily…
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The $22 million increase in discretionary housing and community investment contributions was primarily attributable to an additional mission contribution of $22.5 million that was recognized in the third quarter. The $17 million decrease in other income was substantially driven by changes in interest rates, which resulted in less favorable net interest settlements on economic hedges. The $8 million increase in the provision for credit losses was primarily attributable to declines in the fair values of certain private-label residential mortgage-backed securities.During the third quarter of 2026 and 2025, net gains on derivatives totaled $15 million.
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During the second quarter of 2026, net gains on derivatives totaled $14 million compared to net gains of $1 million in the second quarter of 2025. The improvement was primarily driven by economic hedges of advances held under the fair value option, partially offset by less favorable results on economic hedges of advances not held under the fair value option. These amounts included interest income of $1 million and $14 million resulting from net settlements on derivative instruments used in economic hedges in the second quarter of 2026 and 2025, respectively.Now
During the third quarter of 2026 and 2025, net gains on derivatives totaled $15 million. More favorable results on economic hedges of consolidated obligations and non-MBS investments were substantially offset by less favorable results on economic hedges of advances.Discretionary Community Investment Contributions.
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Discretionary Community Investment Contributions. During the third quarter of 2026, discretionary community investment contributions increased by $22 million compared with the same period in 2025, substantially driven by an additional mission contribution of $22.5 million recognized in the third quarter of 2026. The additional mission contribution supports efforts to expand housing supply, access to affordable housing, and other initiatives benefiting individuals and families across the Bank's three-state district of Arizona, California, and Nevada.Net interest settlements on derivatives 125 261 (175) (3) 208 (5) (11) (1) — (17)
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Net interest settlements on derivatives 125 261 (175) (3) 208 (5) (11) (1) — (17)During the first nine months of 2026, net gains on derivatives totaled $46 million compared to net gains of…
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During the first six months of 2026, net gains on derivatives totaled $31 million compared to net losses of $14 million in the first six months of 2025. The improvement was primarily driven by economic hedges of advances held under the fair value option, partially offset by less favorable results on economic hedges of advances not held under the fair value option. These amounts included interest income of $5 million and $24 million resulting from net settlements on derivative instruments used in economic hedges in the first six months of 2026 and 2025, respectively.Now
During the first nine months of 2026, net gains on derivatives totaled $46 million compared to net gains of $1 million in the first nine months of 2025. The increase primarily reflected net fair value gains on economic hedges, particularly those related to advances held under the fair value option, compared to net fair value losses in the prior-year period, partially offset by lower net interest settlement gains associated with changes in interest rates.Discretionary Community Investment Contributions.
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Discretionary Community Investment Contributions. During the first nine months of 2026, discretionary community investment contributions increased by $38 million compared with the same period in 2025, primarily attributable to the recognition of two additional mission contributions of $22.5 million each during the first and third quarters of 2026. The additional mission contributions support efforts to expand housing supply, access to affordable housing, and other initiatives benefiting individuals and families across the Bank's three-state district of Arizona, California, and Nevada.The concentration of advances among the Bank's five largest borrowers was 45% of total advances outstanding…
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The concentration in advances by borrowers and their affiliates that is 10% or more of total advances outstanding increased by $1.0 billion to $5.8 billion, or 17% of total advances outstanding, at June 30, 2026, from $4.8 billion, or 13% of total advances outstanding, at December 31, 2025.Now
The concentration of advances among the Bank's five largest borrowers was 45% of total advances outstanding, or $13.8 billion, at September 30, 2026, compared with 41%, or $15.8 billion, at December 31, 2025. At September 30, 2026, and December 31, 2025, one borrower represented 10% or more of total advances outstanding.For further information, see "Item 1.
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For further information, see "Item 1. Financial Statements – Note 4 – Advances – Concentration Risk."
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Cover page 2 changes
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For the quarterly period ended June September 30, 2026
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Shares Outstanding as of July 31, October 30, 2026
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Financial statements 183 changes
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(In millions-except par value) June September 30,
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Interest-bearing deposits 3,512 3,127 3,092
Securities purchased under agreements to resell 4,450 5,200 4,650
Federal funds sold 4,145 5,945 5,070
Available-for-sale (AFS) securities, net of allowance for credit losses of $ 38 44 and $ 32 , respectively (amortized cost of $ 19,889 19,704 and $ 20,144 , respectively)
Held-to-maturity (HTM) securities (fair values of $ 641 571 and $ 892 , respectively)
Advances (includes $ 3,028 1,879 and $ 5,441 at fair value under the fair value option, respectively)
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Other assets 254 244
Total Assets $ 67,977 $ 73,329
Deposits $ 883 $ 873
Accrued interest receivable 195 207 193
Derivative assets, net 54 45 42
Other assets 240 244
Total Assets $ 66,577 $ 73,329
Deposits $ 897 $ 873
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Discount notes 25,085 17,074
Other liabilities 235 235
Total Liabilities 60,644 65,969
Bonds (includes $ 295 80 and $ 357 at fair value under the fair value option, respectively)
Discount notes 18,391 17,074
Total consolidated obligations 59,109 57,533 64,328
Mandatorily redeemable capital stock 48 20 106
Accrued interest payable 208 207 292
Affordable Housing Program (AHP) payable 157 167 132
Derivative liabilities, net 4 1 3
Other liabilities 549 235
Total Liabilities 59,374 65,969
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Class B-1 Putable ($ 100 par value): 16 shares issued and outstanding at June September 30, 2026
Class B-2 Putable ($ 100 par value): 9 8 shares issued and outstanding at June September 30, 2026
Total Capital Stock 2,489 2,456 2,552
Unrestricted retained earnings 3,834 3,786 3,847
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Total Retained Earnings 4,649 4,601 4,662
Accumulated other comprehensive income/(loss) (AOCI) 195 146 146
Total Capital 7,333 7,203 7,360
Total Liabilities and Capital $ 67,977 66,577 $ 73,329
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Three Months Ended June 30, Six Months Ended June 30,
Advances $ 372 $ 533 $ 751 $ 1,006
Interest-bearing deposits 32 41 64 85
Federal funds sold 68 68 124 127
AFS securities 228 270 463 538
HTM securities 7 17 15 35
Total Interest Income 736 966 1,487 1,849
Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2026 2025 2026 2025
Advances $ 357 $ 462 $ 1,108 $ 1,468
Interest-bearing deposits 33 40 97 125
Securities purchased under agreements to resell 25 26 32 61 48 87 80
Federal funds sold 66 65 190 192
AFS securities 231 280 694 818
HTM securities 7 15 22 50
Mortgage loans held for portfolio 4 5 9 10 13 15
Total Interest Income 724 899 2,211 2,748
1 unchanged paragraph
Bonds 339 606 728 1,200
Discount notes 232 200 436 326
Deposits 12 15 24 31
Mandatorily redeemable capital stock 2 3 8 8
Total Interest Expense 585 824 1,196 1,565
Net Interest Income 151 142 291 284
Bonds 341 561 1,069 1,761
Discount notes 225 173 661 499
Deposits 11 15 35 46
Mandatorily redeemable capital stock 5 3 13 11
Total Interest Expense 582 752 1,778 2,317
Net Interest Income 142 147 433 431
Provision for/(reversal of) credit losses 6 3 6 4 ( 2 ) 12 2
Net Interest Income After Provision for/(Reversal of) Credit Losses 145 139 285 280 136 149 421 429
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Total Other Income/(Loss) 5 17 2 37
Net gain/(loss) on advances and consolidated obligation bonds held under fair value option ( 16 20 ) 8 ( 42 3 ) 37 ( 62 ) 34
Net gain/(loss) on derivatives 14 15 15 46 1 31 ( 14 )
Standby letters of credit fees 6 5 11 10 4 16 14
Total Other Income/(Loss) 2 19 4 56
1 unchanged paragraph
Office of Finance 2 2 3 3
Compensation and benefits 23 24 48 53 71 77
Other operating expense 13 13 24 28 37 41
Federal Housing Finance Agency 1 2 2 4 6
Office of Finance 1 1 4 4
1 unchanged paragraph
Other, net ( 1 ) — ( 1 2 ) ( 1 )
1 unchanged paragraph
Income/(Loss) Before Assessment 103 105 175 210
AHP assessment 10 11 18 22
Net Income/(Loss) $ 93 $ 94 $ 157 $ 188
Income/(Loss) Before Assessment 72 122 247 332
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and 103 more changes in the filing
Note 2: Recently Issued and Adopted Accounting Guidance 1 change
There have been no new accounting standards adopted or issued during the six nine months ended June September 30, 2026, that had, or are expected to have, a material impact on the Bank's financial statements.
1 unchanged paragraph
Note 3: Investments 4 changes
5 unchanged paragraphs
U.S. Treasury obligations $ 6,466 6,302 $ — $ 8 10 $ — $ 6,474 6,312
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Total $ 19,889 $ ( 38 ) $ 206 $ ( 17 ) $ 20,040
Total $ 19,704 $ ( 44 ) $ 170 $ ( 28 ) $ 19,802
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Amortized cost excludes accrued interest receivable of $ 107 110 million and $ 105 million at June September 30, 2026, and December 31, 2025, respectively. At June September 30, 2026, and December 31, 2025, $ 548 511 million and $ 501 million of AFS securities, respectively, were pledged as collateral that may be repledged. During the quarter, the Bank purchased $ 318 million of MBS that had not settled as of September 30, 2026. The Bank had no unsettled investment securities purchases as of September 30, 2025.
1 unchanged paragraph
Note 4: Advances 12 changes
1 unchanged paragraph
(Dollars in millions) June September 30, 2026 December 31, 2025
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Total $ 34,042 $ 38,227
After 1 year through 2 years 6,329 3.92 6,052 4.09 6,476 4.08
After 2 years through 3 years 2,702 4.08 1,943 3.89 4,218 4.03
After 3 years through 4 years 1,520 3.67 1,305 3.77 996 3.83
After 4 years through 5 years 724 3.89 669 4.03 1,591 3.68
After 5 years 1,193 3.81 652 4.33 2,105 3.79
Total par value 34,107 3.94 30,961 4.16 % 38,149 3.90 %
Valuation adjustments for hedging activities ( 76 141 ) 8
Valuation adjustments under fair value option 11 ( 12 ) 70
Total $ 30,808 $ 38,227
Carrying amounts exclude accrued interest receivable of $ 71 80 million and $ 67 million at June September 30, 2026, and December 31, 2025, respectively.
1 unchanged paragraph
Notes to the financial statements 26 changes
The following table summarizes advances at June September 30, 2026, and December 31, 2025, 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.
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Within 1 year $ 22,964 $ 24,038 $ 24,756 $ 27,533
After 5 years 968 1,830 509 546
Total par value $ 34,107 $ 38,149 $ 34,107 $ 38,149
(In millions) June September 30, 2026 December 31, 2025 June September 30, 2026 December 31, 2025
Within 1 year $ 21,540 $ 24,038 $ 22,634 $ 27,533
After 1 year through 2 years 5,229 5,052 5,476 5,330 5,335 5,272
After 2 years through 3 years 2,702 1,943 4,218 1,725 981 3,188
After 3 years through 4 years 1,520 1,305 996 1,296 1,024 577
After 4 years through 5 years 724 669 1,591 491 438 1,033
After 5 years 452 1,830 549 546
Total par value $ 30,961 $ 38,149 $ 30,961 $ 38,149
1 unchanged paragraph
June 30, 2026 Six Months Ended
June September 30, 2026 Three Months Ended
September 30, 2026 Nine Months Ended
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Western Alliance Bank $ 5,800 17 % $ 36 10 % $ 66 9 %
June 30, 2025 Six Months Ended
Western Alliance Bank $ 5,200 17 % $ 34 10 % $ 100 9 %
June September 30, 2025 Three Months Ended
September 30, 2025 Nine Months Ended
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Western Alliance Bank $ 5,600 14 % $ 56 11 % $ 97 10 %
JPMorgan Chase, National Association (2)
Western Alliance Bank $ 3,400 10 % $ 48 11 % $ 145 11 %
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(2) 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 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. At June September 30, 2026, and December 31, 2025, the Bank retained 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 September 30, 2026, and December 31, 2025, 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 six nine months ended June September 30, 2026 and 2025.
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 September 30, 2026, and December 31, 2025, the Bank expects to collect all amounts due according to the contractual terms of the advances. Therefore, no allowance for credit losses on advances was deemed necessary by the Bank as of June September 30, 2026, and December 31, 2025.
1 unchanged paragraph
Note 5: Mortgage Loans Held for Portfolio 3 changes
1 unchanged paragraph
(In millions) June September 30, 2026 December 31, 2025
4 unchanged paragraphs
Total mortgage loans held for portfolio, net $ 616 601 $ 639
1 unchanged paragraph
Mortgage loans exclude accrued interest receivable of $ 4 million and $ 5 million at June September 30, 2026, and December 31, 2025, respectively.
1 unchanged paragraph
Note 6: Deposits 4 changes
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Interest-bearing deposits:
June September 30, 2026 December 31, 2025
Demand and overnight interest-bearing deposits $ 876 893 $ 870
Non-interest-bearing deposits 5 4 3
1 unchanged paragraph
Note 7: Consolidated Obligations 26 changes
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, which are backed by the financial resources of the FHLBanks. The par value of the outstanding consolidated obligations of the FHLBanks was $ 1.3 trillion and $ 1.2 trillion at June September 30, 2026, and December 31, 2025, respectively.
1 unchanged paragraph
(Dollars in millions) June September 30, 2026 December 31, 2025
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Unamortized discounts ( 1 ) ( 1 )
Within 1 year $ 23,558 3.39 30,761 3.80 % $ 32,836 3.43 %
After 1 year through 2 years 5,491 3.48 3,799 3.60 8,580 3.58
After 2 years through 3 years 931 3.36 918 3.83 1,648 3.45
After 3 years through 4 years 1,803 1,584 4.28 2,266 4.25
After 4 years through 5 years 1,809 3.94 1,693 3.98 1,201 4.24
After 5 years 547 2.93 587 3.06 822 2.88
Total par value 34,139 3.47 39,342 3.80 % 47,353 3.51 %
Unamortized discounts ( 2 ) ( 1 )
Valuation adjustments for hedging activities ( 114 198 ) ( 95 )
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Total $ 34,024 $ 47,254
Total $ 39,142 $ 47,254
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(In millions) June September 30, 2026 December 31, 2025
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Non-callable $ 22,934 $ 30,482
Callable 11,205 16,871
Non-callable $ 29,138 $ 30,482
Callable 10,204 16,871
Total par value $ 34,139 39,342 $ 47,353
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Maturity or Next Call Date June September 30, 2026 December 31, 2025
Within 1 year $ 28,589 35,702 $ 40,191
After 1 year through 2 years 5,184 3,263 6,774
After 2 years through 3 years 330 335 336
After 3 years through 4 years 9 15 25
Total par value $ 34,139 39,342 $ 47,353
1 unchanged paragraph
Note 8: Accumulated Other Comprehensive Income/(Loss) 13 changes
2 unchanged paragraphs
Balance, March 31, 2025
Other comprehensive income/(loss):
Net change in fair value ( 35 ) ( 35 )
Net current period other comprehensive income/(loss) ( 35 ) — ( 35 )
1 unchanged paragraph
Balance, March 31, 2026
1 unchanged paragraph
Net change in pension and postretirement benefits 1 1
1 unchanged paragraph
Net current period other comprehensive income/(loss) 39 — 39 1 40
Balance, September 30, 2025
1 unchanged paragraph
Other comprehensive income/(loss):
Net change in pension and postretirement benefits ( 1 ) ( 1 )
Net change in fair value ( 48 ) ( 48 )
Net current period other comprehensive income/(loss) ( 48 ) ( 1 ) ( 49 )
Balance, September 30, 2026
1 unchanged paragraph
Note 9: Capital 13 changes
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June September 30, 2026 December 31, 2025
1 unchanged paragraph
Risk-based capital $ 889 825 $ 7,186 7,077 $ 1,004 $ 7,321
Total regulatory capital $ 2,719 2,663 $ 7,186 7,077 $ 2,933 $ 7,321
Total regulatory capital ratio 4.00 % 10.57 10.63 % 4.00 % 9.98 %
Leverage capital $ 3,399 3,329 $ 10,779 10,615 $ 3,666 $ 10,981
Leverage ratio 5.00 % 15.86 15.94 % 5.00 % 14.97 %
1 unchanged paragraph
(In millions) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025
Three Months Ended Six Nine Months Ended
(In millions) September 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025
Balance at the beginning of the period $ 88 48 $ 153 131 $ 106 $ 331
Reclassified from/(to) capital during the period 44 — 17 44 — 17
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Balance at the end of the period $ 48 20 $ 131 112 $ 48 20 $ 131 112
Capital Plan and Dividend Framework. As disclosed in the Bank's 2025 Form 10-K, effective January 2, 2026, the Bank's outstanding Class B stock was converted into Class B-1 membership stock and Class B-2 activity-based stock. Class B-2 activity-based stock is equal to the Activity-Based Stock Requirement (as defined in the Capital Plan), and Class B-1 membership stock is calculated by subtracting Activity-Based Stock Requirement from total capital stock held. If a member has no activity requiring Class B-2 activity-based stock, such member will hold only Class B-1 membership stock based on the Membership Stock Requirement (as defined in the Capital Plan). The board of directors (Board) also approved an update to the dividend philosophy that establishes a guideline for dividend rates for Class B-2 stock to be greater than or equal to Class B-1 stock. The decision to declare any dividend and any dividend rates are at the discretion of the Board and the Board may choose to follow or not follow the dividend philosophy in the declaration of any dividends.
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Note 10: Derivatives and Hedging Activities 12 changes
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June September 30, 2026 December 31, 2025
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Interest rate swaps $ 64,711 54,014 $ 473 531 $ 101 170 $ 69,418 $ 507 $ 131
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Interest rate swaps 9,120 11 11 6,682 24 3 12,145 5 51
Total derivatives before netting and collateral adjustments $ 73,831 484 112 60,696 555 173 $ 81,563 512 182
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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.
Three Months Ended June 30, 2026
Interest Income/(Expense)
(In millions) Advances AFS Securities Consolidated Obligation Bonds Consolidated Obligation Discount Notes
Total interest income/(expense) presented in the Statements of Income $ 372 $ 228 $ ( 339 ) $ ( 232 )
Gain/(loss) on fair value hedging relationships
Net gain/(loss) on derivatives and hedging activities recorded in net interest income
Total derivative assets and total derivative liabilities $ 54 45 $ 4 1 $ 42 $ 3 (1) 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 $ 27 71 million and $ 53 million at June September 30, 2026, and December 31, 2025, respectively. Cash collateral received, including accrued interest, was $ 348 408 million and $ 345 million at June September 30, 2026, and December 31, 2025, respectively.
1 unchanged paragraph
Note 11: Fair Value 22 changes
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Federal funds sold 4,145 4,145 — 4,145 — —
AFS securities 20,040 20,040 — 19,214 826 —
HTM securities 651 641 — 572 69 —
Advances 34,042 34,048 — 34,048 — —
Interest-bearing deposits 3,512 3,512 3,512 3,127 3,127 3,127 — — —
Securities purchased under agreements to resell 4,450 4,450 5,200 5,200 — 4,450 5,200 — —
Federal funds sold 5,945 5,945 — 5,945 — —
AFS securities 19,802 19,802 — 19,015 787 —
HTM securities 584 571 — 508 63 —
Advances 30,808 30,766 — 30,766 — —
Mortgage loans held for portfolio 616 531 601 490 — 531 490 — —
Accrued interest receivable 195 195 207 207 — 195 207 — —
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Deposits 883 883 — 883 — —
Deposits 897 897 — 897 — —
1 unchanged paragraph
Bonds 34,024 33,931 — 33,931 — —
Discount notes 25,085 25,081 — 25,081 — —
Total consolidated obligations 59,109 59,012 — 59,012 — —
Bonds 39,142 39,013 — 39,013 — —
Discount notes 18,391 18,389 — 18,389 — —
Total consolidated obligations 57,533 57,402 — 57,402 — —
Mandatorily redeemable capital stock 48 48 48 20 20 20 — — —
Accrued interest payable 208 208 207 207 — 208 207 — —
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Note 12: Commitments and Contingencies 6 changes
1 unchanged paragraph
The carrying value of guarantees related to standby letters of credit, representing unearned fees and recorded in other liabilities, was $ 75 million and $ 63 million at June 30, 2026, and December 31, 2025, respectively. Standby
(In millions) June September 30, 2026 December 31, 2025
Standby letters of credit outstanding $ 21,021 20,201 $ 20,275
Commitments to fund additional advances 112 —
Commitments to issue consolidated obligation bonds, par 110 25 —
Commitments to issue consolidated obligation discount notes, par 100 — 168
1 unchanged paragraph
Note 13: Transactions with Certain Members, Certain Nonmembers, and Other FHLBanks 12 changes
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Advances $ 762 $ 3,271
(In millions) June September 30, 2026 December 31, 2025
Advances $ 927 $ 3,271
Mortgage loans held for portfolio 63 62 65
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(In millions) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025
Advances $ 22 $ 85 $ 39 $ 122
Three Months Ended Six Nine Months Ended
(In millions) September 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025
Advances $ 17 $ 79 $ 56 $ 201
Mortgage loans held for portfolio — — 1 1 2 2
All transactions with members, nonmembers, and their affiliates are entered into in the ordinary course of business. As of June September 30, 2026, and December 31, 2025, no shareholder owned more than 10% of the total voting interests in the Bank because of the statutory limit on members' voting rights.
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Overnight Funds . During the six nine months ended June September 30, 2026 and 2025, the Bank extended overnight loans to other FHLBanks for $ 10 million and $ 500 million, respectively. During the six nine months ended June September 30, 2026 and 2025, the Bank borrowed $ 875 million 1.9 billion and $ 750 million, 1.1 billion, respectively, from other FHLBanks.
MD&A 250 changes
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The $12 million decrease in other income was primarily driven by lower net interest settlements on economic hedges compared with the second quarter of 2025. The $9 million increase in net interest income was substantially all due to $9 million of higher net advance prepayment fees recognized during the second quarter of 2026 compared with the second quarter of 2025.
Also on July 23, 2026, the Bank approved an additional voluntary mission contribution of $22.5 million, increasing the Bank's 2026 voluntary contributions commitment to approximately 15% of 2025 net income. This additional voluntary mission contribution includes $16.5 million for the Bank's Affordable Housing Program (AHP) general fund and $6 million for other voluntary housing and community investment initiatives.
Net income for the second third quarter of 2026 was $93 $64 million, a decrease of $1 $46 million compared with the second third quarter of 2025. The decrease was primarily attributable to an increase in discretionary community investment contributions of $22 million, a decrease in other income of $12 $17 million, partially offset by and an increase in net interest income the provision for credit losses of $9 $8 million.
The $22 million increase in discretionary housing and community investment contributions was primarily attributable to an additional mission contribution of $22.5 million that was recognized in the third quarter. The $17 million decrease in other income was substantially driven by changes in interest rates, which resulted in less favorable net interest settlements on economic hedges. The $8 million increase in the provision for credit losses was primarily attributable to declines in the fair values of certain private-label residential mortgage-backed securities.
On July 23, October 22, 2026, the Bank's board of directors (Board) declared quarterly cash dividends on the average Class B‑1 membership stock and the average Class B‑2 activity‑based stock outstanding during the second third quarter of 2026 at annualized rates of 4.75% and 10.00%, respectively. with total dividends for The quarter amounting to $44 dividends, totaling $43 million, The Bank expects are expected to pay these dividends be paid on August 11, November 10, 2026.
The Bank exceeded its 4.00% regulatory capital requirement with a regulatory capital ratio of 10.57% 10.63% at June September 30, 2026. As of June September 30, 2026, the Bank's retained earnings totaled $4.6 billion, exceeding the $2.3 $2.6 billion required level of retained earnings established under the Bank's Excess Stock Repurchase, Retained Earnings, and Dividend Framework (Framework) in accordance with Federal Housing Finance Agency (Finance Agency) guidance. Following an update to the Framework in July 2026, the required level of retained earnings increased to $2.6 billion.
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(Dollars in millions) June September 30,
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Total Assets $ 66,577 $ 67,977 $ 70,676 $ 73,329 $ 75,769 $ 83,146
Advances 30,808 34,042 37,792 38,227 34,242 39,909
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Bonds 39,142 34,024 39,539 47,254 48,747 54,061
Discount Notes 18,391 25,085 21,206 17,074 17,648 19,174
Mandatorily Redeemable Capital Stock 20 48 88 106 112 131
Unrestricted Retained Earnings 3,786 3,834 3,783 3,847 3,798 3,749
1 unchanged paragraph
Total Capital 7,203 7,333 7,292 7,360 7,139 7,186
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Net Interest Income $ 142 $ 151 $ 140 $ 157 $ 147 $ 142
Provision for/(Reversal of) Credit Losses 6 6 — 1 (2) 3
Other Income/(Loss) 2 5 (3) 12 19 17
Voluntary Housing and Community Investment Contributions 28 9 27 6 6 10
1 unchanged paragraph
Affordable Housing Program (AHP) Assessment 8 10 8 12 12 11
Net Income/(Loss) $ 64 $ 93 $ 64 $ 105 $ 110 $ 94
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Return on Average Assets 0.37 0.51 0.35 0.59 0.56 0.45
Return on Average Equity 3.52 5.09 3.51 5.77 5.98 5.22
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4.75 N/A 4.75 N/A N/A N/A
1 unchanged paragraph
Annualized Special Dividend Rate (Declared and Paid) N/A 11.36 N/A N/A N/A
10.00 N/A 10.00 N/A N/A N/A
1 unchanged paragraph
Average Equity to Average Assets Ratio 10.44 10.08 9.85 10.19 9.44 8.66
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(4) This ratio is calculated as dividends per share divided by net income per share. Dividends per share included two special cash dividends, one in the first quarter and one in the third quarter of 2026.
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Net Interest Income for the Three Months Ended June September 30, 2026 and 2025. 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), 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.
Second Third Quarter of 2026 Compared to Second Third Quarter of 2025
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June September 30, 2026 June September 30, 2025
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Interest-bearing deposits $ 3,447 $ 32 3.73 % $ 3,715 $ 41 4.43 %
Federal funds sold 7,425 68 3.67 6,259 68 4.39
Interest-bearing deposits $ 3,496 $ 33 3.77 % $ 3,598 $ 40 4.41 %
Securities purchased under agreements to resell 2,663 25 3.68 2,964 2,775 26 3.72 2,859 32 4.37 4.36
Federal funds sold 7,108 66 3.71 5,889 65 4.36
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Held-to-maturity (HTM) securities: MBS 663 7 4.31 1,393 17 4.88
Held-to-maturity (HTM) securities: MBS 606 7 4.24 1,223 15 4.85
1 unchanged paragraph
Total interest-earning assets 71,128 736 4.15 83,325 966 4.65
Total Assets $ 72,621 $ 84,183
Total interest-earning assets 68,537 724 4.20 75,764 899 4.70
Total Assets $ 69,705 $ 76,702
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Mandatorily redeemable capital stock 72 2 12.02 148 3 10.08
Borrowings from other FHLBanks — — — 7 — 4.39
Total interest-bearing liabilities 64,178 585 3.65 76,097 824 4.34
Mandatorily redeemable capital stock 29 5 80.03 130 3 8.83
Borrowings from other FHLBanks 11 — 3.68 4 — 4.18
Total interest-bearing liabilities 61,651 582 3.75 68,789 752 4.33
1 unchanged paragraph
Total Liabilities 65,298 76,894
Total Capital 7,323 7,289
Total Liabilities and Capital $ 72,621 $ 84,183
Total Liabilities 62,426 69,461
Total Capital 7,279 7,241
Total Liabilities and Capital $ 69,705 $ 76,702
Net Interest Income $ 151 $ 142 $ 147
2 unchanged paragraphs
Interest-earning Assets/Interest-bearing Liabilities 110.83 111.17 % 109.50 110.14 % (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.
4 unchanged paragraphs
The following table details the changes in interest income and interest expense for the second third quarter of 2026 compared to the second third quarter of 2025. Changes in both volume and interest rates influence changes in net interest income, net interest spread, and net interest margin.
1 unchanged paragraph
Three Months Ended June September 30, 2026, versus Three Months Ended June September 30, 2025 (Decrease) Attributable to Changes in (1)
1 unchanged paragraph
Interest-bearing deposits $ (9) $ (3) $ (6)
Federal funds sold — 12 (12)
Interest-bearing deposits $ (7) $ (1) $ (6)
Securities purchased under agreements to resell (7) (3) (4) (6) (1) (5)
Federal funds sold 1 11 (10)
1 unchanged paragraph
HTM securities: MBS (10) (8) (2)
HTM securities: MBS (8) (6) (2)
1 unchanged paragraph
Total interest income (230) (129) (101)
Total interest income (175) (81) (94)
2 unchanged paragraphs
Mandatorily redeemable capital stock (1) 2 1 (5) 7
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Net interest income in the second quarter of 2026 was $151 million, a 6% increase from $142 million in the second quarter of 2025. The $9 million increase in net interest income was substantially all due to $9 million of higher net advance prepayment fees recognized during the second quarter of 2026 compared with the second quarter of 2025.
Net interest income in the third quarter of 2026 was $142 million, a 3% decrease from $147 million in the third quarter of 2025. The $5 million decrease in net interest income was largely driven by decreases in advance balances, partially offset by lower costs of interest-bearing liabilities.
1 unchanged paragraph
Net interest settlements on derivatives 10 44 (15) 1 40
(In millions) Advances AFS Securities Consolidated Obligation Bonds Consolidated Obligation Discount Notes (Amortization)/accretion of hedging activities $ (2) 1 $ (23) $ — $ — $ (25) (22)
Net interest settlements on derivatives 5 46 (13) 1 39
2 unchanged paragraphs
Net gain/(loss) on derivatives and hedged items (1) — — — (1)
Net interest settlements on derivatives 39 86 (58) (2) 65
(In millions) Advances AFS Securities Consolidated Obligation Bonds Consolidated Obligation Discount Notes Total (Amortization)/accretion of hedging activities $ (6) $ (24) (25) $ — $ — $ (30) (31)
Net interest settlements on derivatives 40 86 (61) (3) 62
4 unchanged paragraphs
(In millions) June September 30, 2026 June September 30, 2025
Net gain/(loss) on advances and consolidated obligation bonds held under fair value option $ (16) (20) $ 8 (3)
Net gain/(loss) on derivatives 14 1 15 15
Standby letters of credit fees 6 5 4
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and 170 more changes in the filing
Market risk 11 changes
Market Value of Capital Sensitivity – The Bank uses m arket 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 September 30, 2026.
5 unchanged paragraphs
June September 30, 2026 December 31, 2025
6 unchanged paragraphs
The Bank's estimates of the sensitivity of the market value of capital to changes in interest rates as of June September 30, 2026, are comparable to the estimates as of December 31, 2025 for rising rate scenarios, but less favorable in declining rate scenarios due to the increase in interest rates. Compared to December 31, 2025, interest rates as of June September 30, 2026, have increased 9 33 basis points for the one-month Treasury bill, increased 48 138 basis points for the five-year Treasury note, and increased 27 115 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 (including mandatorily redeemable capital stock recognized as a liability in the Statements of Condition). The ratio of the Bank's estimated market value of total capital to par value of capital stock was 292% 291% as of June September 30, 2026.
1 unchanged paragraph
Duration Gap – The Bank monitors the duration gap analysis. The Bank's duration gap metric as of June September 30, 2026 is comparable marginally declined compared with the estimate as of December 31, 2025 primarily due to higher interest rates. The following table presents the Bank's duration gap for its assets and liabilities at June September 30, 2026, and December 31, 2025.
1 unchanged paragraph
June September 30, 2026 December 31, 2025
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Assets $ 67,977 1.1 $ 73,329 1.3
Liabilities 60,644 1.0 65,969 0.9
Assets $ 66,577 0.8 $ 73,329 1.3
Liabilities 59,374 0.9 65,969 0.9
Net $ 7,333 7,203 (0.1) $ 7,360 0.4
2 unchanged paragraphs
Controls and procedures 1 change
4 unchanged paragraphs
During the three months ended June September 30, 2026, 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.
3 unchanged paragraphs
Exhibits 1 change
12 unchanged paragraphs
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 5, November 4, 2026.
10 unchanged paragraphs
Unchanged: Note 1: Basis of Presentation and Significant Accounting Policies, Legal proceedings, Risk factors, Unregistered sales of stock, Defaults on senior securities, Mine safety disclosures, Other information
Only in the earlier filing: Note 14: Subsequent Events
Compared by code from the two filings' text and XBRL. Not advice.
The reading, claim by claim
- The Federal Home Loan Bank of San Francisco's Form 10-Q for the quarter ended September 30, 2026, shows total assets of $66,577 million, down from $73,329 million as of December 31, 2025.
- The statements include details on assets like advances, securities, and mortgage loans, as well as liabilities such as consolidated obligations and deposits.
- Interest income for the three months ended September 30, 2026, was $724 million, compared to $899 million in the same period in 2025.
- Interest expense was $582 million, down from $752 million.
- Net income for the three months ended September 30, 2026, was $64 million, compared to $110 million in the same period in 2025.
- Restricted retained earnings remained at $815 million.
- Accumulated other comprehensive income was $146 million.
7 of 8 claims matched the filing text.
Not found in the filing text
- The bank's financial statements provide detailed figures on its balance sheet, income, and capital structure.
From the filing
ITEM 1. FINANCIAL STATEMENTS
ITEM 1. FINANCIAL STATEMENTS
Federal Home Loan Bank of San Francisco
Statements of Condition
(Unaudited)
(In millions-except par value) September 30,
2026 December 31,
2025
Cash and due from banks $ 18 $ 16
Interest-bearing deposits 3,127 3,092
Securities purchased under agreements to resell 5,200 4,650
Held-to-maturity (HTM) securities (fair values of $ 571 and $ 892 , respectively)
584 903
Advances (includes $ 1,879 and $ 5,441 at fair value under the fair value option, respectively)
30,808 38,227
Mortgage loans held for portfolio, net of allowance for credit losses of $ 1 and $ 1 , respectively
Consolidated obligations:
Bonds (includes $ 80 and $ 357 at fair value under the fair value option, respectively)
Affordable Housing Program (AHP) payable 167 132
Commitments and Contingencies (Note 12)
Capital:
Class B Putable ($ 100 par value): 26 shares issued and outstanding at December 31, 2025
— 2,552
Class B-1 Putable ($ 100 par value): 16 shares issued and outstanding at September 30, 2026
1,624 —
Class B-2 Putable ($ 100 par value): 8 shares issued and outstanding at September 30, 2026
832 —
Accumulated other comprehensive income/(loss) (AOCI) 146 1467
The accompanying notes are an integral part of these financial statements.
1
Table of Contents
Federal Home Loan Bank of San Francisco
Statements of Income
(Unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
Voluntary housing and community investment contributions
Total Non-Interest Expense
The accompanying notes are an integral part of these financial statements.
2
Table of Contents
Federal Home Loan Bank of San Francisco
Statements of Comprehensive Income/(Loss)
(Unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
The accompanying notes are an integral part of these financial statements.
3
Table of Contents
Federal Home Loan Bank of San Francisco
Statements of Capital Accounts
(Unaudited)
Capital Stock
Class B — Putable
Capital Stock
Class B-1 — Putable
(Membership) Capital Stock
Class B-2 — Putable
(Activity) Retained Earnings Total
Capital
(In millions) Shares Par Value Shares Par Value Shares Par Value Restricted Unrestricted Total AOCI
Cash dividends paid on capital stock
Capital Stock
Class B — Putable
Capital Stock
Class B-1 — Putable
(Membership) Capital Stock
Class B-2 — Putable
(Activity) Retained Earnings Total
Capital
(In millions) Shares Par Value Shares Par Value Shares Par Value Restricted Unrestricted Total AOCI
Balance, December 31, 2024 25 $ 2,458 — $ — — $ — $ 815 $ 3,668 $ 4,483 $ 63 $ 7,