Federal Home Loan Bank of San Francisco reported unaudited earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported net income of $81 million compared to $169 million a year ago. Net interest income was $127 million compared to $242 million a year ago. Return on average assets was 0.37% compared to 0.62% a year ago. Return on average equity was 5.59% compared to 13.99% a year ago. The decrease in net income for the first quarter of 2013 reflected a decline in net interest income to $127 million, down from $242 million for the first quarter of 2012. This decline was due, in part, to lower average balances of advances, mortgage-backed securities, and mortgage loans; a decline in earnings on invested capital because of lower average capital balances and the lower interest rate environment; lower advance prepayment fees; and an increase in dividends on mandatorily redeemable capital stock, which are classified as interest expense. Accumulated other comprehensive loss was $453 million. The Board of Directors declared a cash dividend on the capital stock outstanding during the first quarter of 2013 at an annualized rate of 3.38%. The Bank expects to pay the dividend (including dividends on mandatorily redeemable capital stock), which will total $71 million, on or about May 16, 2013.

Federal Home Loan Bank of San Francisco announced unaudited earnings results for the fourth quarter and year ended December 31, 2012. For the quarter, the company reported net interest income of $171 million against $245 million a year ago. Net income was $94 million against $111 million a year ago. Return on average assets was 0.41% against 0.36% a year ago. Return on average equity was 6.73% against 9.14% a year ago. Return on average equity was 6.73% against 9.14% a year ago. For the year, the company reported net interest income of $848 million against $1,033 million a year ago. Net income was $491 million against $216 million a year ago. Return on average assets was 0.48% against 0.15% a year ago. Return on average equity was 9.44% against 3.43% a year ago. The decreases in net interest income were due, in part, to lower average balances of advances, mortgage-backed securities, and mortgage loans; to a decline in earnings on invested capital because of lower capital balances and the lower interest rate environment. The company's Board of Directors declared a cash dividend on the capital stock outstanding during the fourth quarter of 2012 at an annualized rate of 2.30%. The Bank expects to pay the dividend (including dividends on mandatorily redeemable capital stock), which will total $51 million, on or about March 25, 2013.

The board of directors of the Federal Home Loan Bank of San Francisco has elected independent director John F. Luikart as Chairman and member director Douglas H. (Tad) Lowrey as Vice Chairman. John F. Luikart has been president of Bethany Advisors LLC, San Francisco, California, since February 2007. He is also a trustee of four asbestos trusts, including, since 2004, the Western Asbestos Settlement Trust. Previous positions include chairman of Wedbush Securities Inc., president and chief operating officer of Tucker Anthony Sutro, and chairman and chief executive officer of Sutro & Co. He has served on the bank's Board of Directors since 2007, and his current four-year term began in 2010. Tad Lowrey was appointed chairman of the board of CapitalSource Bank in July 2012 and has been chief executive officer since its formation in 2008. He currently serves on the Board of Directors for the California Bankers Association, and he is a member of the Government Relations Council and American Banker's Council of the American Bankers Association. Previous positions include chairman of Wedbush Bank and executive vice president of its holding company, WEDBUSH Inc., and chairman, president, and chief executive officer of Jackson Federal Bank. Mr. Lowrey previously served on the FHLBank San Francisco's Board of Directors from 1996 to 1998 and from 1999 to 2003, including service as vice chairman in 2003. He rejoined the Bank's board of directors in 2006, and his current four-year term began in 2010.