Federal Home Loan Bank of San Francisco's 2024 Financial Insights
Federal Home Loan Bank of San Francisco Financial Overview
The Federal Home Loan Bank of San Francisco has released its annual and quarterly financial results, reflecting its commitment to fostering economic growth across the regions it serves.
Annual Financial Performance
For the year 2024, the Bank reported a net income of $402 million. This marks a decline of $137 million from the previous year's income. The drop was primarily due to a reduction in net interest income and heightened expenses.
Key Financial Figures
Specifically, net interest income fell by $219 million, mostly influenced by the lower average balances of advances and rising costs of interest-bearing liabilities. The Bank's other income, however, saw a boost, rising by $86 million compared to the previous year. This increase came about due to lesser net losses from hedging and increased revenue from other funding arrangements.
Quarterly Highlights
In the fourth quarter of 2024, the Bank recorded a net income of $90 million, which is a decrease of $30 million compared to the fourth quarter of 2023. Similar trends persist in this quarter, with net interest income subject to further decline due to recent fiscal pressures.
Expenses and Community Contributions
In addition to lost income, the Bank's charitable contributions increased by $8 million this quarter, as it sought to assist more communities through initiatives such as the Access to Housing and Economic Assistance for Development Program.
Balance Sheet Insights
As of December 31, 2024, total assets stood at approximately $81.7 billion. This represents a decrease of about $11.1 billion from the previous year, mainly due to reduced advances from the Bank. Advances dropped significantly from $61.3 billion to $45.6 billion as nonmembers acquired certain advances.
Investments Show Growth
Investments have seen a considerable increase, now at $35 billion, reflecting a strategy focused on acquiring treasury securities and other short-term investments.
Capital Management and Dividends
At the year's end, the Bank exceeded all regulatory capital requirements with an impressive ratio standing at 8.9%. This solidifies the Bank's stable foundation as it endeavors to meet community demands effectively.
Dividend Declaration and Philosophy
On February 19, 2025, the Bank's board confirmed a quarterly cash dividend, maintaining its annualized rate of 8.75%. This approach aims to match or exceed market rates while ensuring sustainability under current earnings conditions.
Affirmative Housing Initiatives
The Federal Home Loan Bank of San Francisco remains dedicated to targeting affordable housing initiatives through its Affordable Housing Program, which allocates a portion of its funds for community development.
Community Financial Contributions
For 2024, the Bank set aside $93 million for various affordable housing pursuits, surpassing the prior year by $14 million. Much of this funding will assist with downpayment grants and infrastructure projects aimed at underserved communities.
Conclusion on Future Prospects
The supportive measures and financial strategies adopted by the Federal Home Loan Bank of San Francisco underscore its mission to enhance community vitality and address housing affordability challenges effectively. Looking ahead, continued collaboration with local institutions will play a crucial role in driving future economic success.
Frequently Asked Questions
What was the net income for the Federal Home Loan Bank in 2024?
The Bank reported a net income of $402 million for the full year of 2024.
How much did the Bank allocate to affordable housing in 2024?
The Bank allocated a total of $93 million to its Affordable Housing Program and voluntary initiatives in 2024.
What factors contributed to the decline in net interest income?
The decline was mainly due to lower average balances of advances and higher costs of interest-bearing liabilities.
When is the Bank's next dividend payment scheduled?
The Bank expects to pay the quarterly dividend on March 11, 2025.
How does the Bank support community initiatives?
The Bank engages in various community programs and provides funding aimed at affordable housing and economic development projects.
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