Federal Home Loan Bank of San Francisco
10/06/2025 | Press release | Distributed by Public on 10/06/2025 10:13
Material Event (Form 8-K)
Item 8.01 Other Events.
On October 6, 2025, the Federal Home Loan Bank of San Francisco (the "Bank") provided notice to its members that at its September 26, 2025, board of directors ("Board") meeting, the Board adopted resolutions to provide for the mandatory conversion of the Bank's Class B stock into Class B-1 and Class B-2 stock, and to designate the rights, preferences, and privileges of such Class B-1 and Class B-2 stock. The conversion will become effective on January 2, 2026.
Effective January 2, 2026, the Bank's outstanding Class B stock will be converted into Class B-1 membership stock and Class B-2 activity-based stock, as applicable. Upon conversion, members will be required to maintain the minimum stock requirement ("Minimum Stock Requirement"), which remains unchanged and will continue to be calculated as the greater of: (i) the membership stock requirement, which will equal 1.0% of membership asset value up to a maximum of $15 million ("Membership Stock Requirement"), and (ii) the activity-based stock requirement, which will equal 2.7% of outstanding advance balances plus 0.1% of letters of credit balances ("Activity-Based Stock Requirement").
Upon conversion, Class B-2 activity-based stock will equal the Activity-Based Stock Requirement, and Class B-1 membership stock will be 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. The Minimum Stock Requirement will be calculated daily. Total capital stock held is converted to shares daily by dividing by $100. The total average shares outstanding to calculate any dividend(s) will be determined using the average of the daily shares over the dividend time period.
The 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.
The foregoing description of the Bank's capital stock, Class B-1 and Class B-2 stock, and Minimum Stock Requirement is qualified in its entirety by the Bank's Capital Plan filed as Exhibit 4.2 to its Form 10-K for the year ended December 31, 2024.
Federal Home Loan Bank of San Francisco published this content on October 06, 2025, and is solely responsible for the information contained herein. Distributed via SEC EDGAR on October 06, 2025 at 16:13 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]