Federal Home Loan Bank of San Francisco Announces Projected Dividend Rate for First...

Federal Home Loan Bank of San Francisco Announces Projected Dividend Rate for First Quarter 2008

SAN FRANCISCO--(Business Wire)--
The Federal Home Loan Bank of San Francisco's Board of Directors
has declared a dividend for the first quarter of 2008, to be
determined in accordance with the Bank's Retained Earnings and
Dividend Policy. The Bank expects to file its first quarter Form 10-Q
on or about May 15, 2008. The Bank intends to announce its first
quarter operating results, including the dividend rate, on or before
the 10-Q filing date and to pay the dividend on or within five
business days after the 10-Q filing date.

In accordance with the Bank's Retained Earnings and Dividend
Policy, the Bank plans to retain 10% of its earnings, excluding the
effects of SFAS 133 and SFAS 159, and make available for dividends an
amount equal to the remaining 90% of earnings, excluding the effects
of SFAS 133 and SFAS 159, until the Bank's retained earnings target of
$296 million is reached. Based on the information available to date
and the Bank's estimated earnings for the first quarter of 2008
(excluding the effects of SFAS 133 and SFAS 159), the Bank's
annualized dividend rate is projected to be 5.46% for the first
quarter. The Bank is providing this projection of the first quarter
dividend rate for general informational purposes only. Since the Bank
has not yet closed its books for the first quarter of 2008 and the
projected dividend rate is based on an estimation of the Bank's first
quarter earnings, the actual dividend rate may be significantly
different as a result of a number of factors, which may include the
effects of SFAS 91, SFAS 133, and SFAS 159, and the Bank's ability to
pay dividends out of retained earnings. In addition, payment of a
dividend remains within the discretion of the Bank's Board of
Directors and subject to certain regulatory requirements.

About the Federal Home Loan Bank of San Francisco

The Federal Home Loan Bank of San Francisco delivers low-cost
funding and other services that help member financial institutions
make home mortgage loans to people of all income levels and provide
credit that supports neighborhoods and communities. The Bank also
funds community investment programs that help members create
affordable housing and promote community economic development. The
Bank's members -- its shareholders and customers -- are commercial
banks, credit unions, savings institutions, thrift and loans, and
insurance companies headquartered in Arizona, California, and Nevada.
The Federal Home Loan Bank of San Francisco is one of 12 regional
banks in the FHLBank System.

Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995

This press release contains forward-looking statements within the
meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. These statements, including the
projected dividend rate, are based on the Bank's current estimations,
assumptions, and expectations, and speak only as of the date of this
press release. These statements may use forward-looking terms, such as
"to be," "expects," "intends," "plans," "estimated," "projected,"
"may," or their negatives or other variations on these terms. The Bank
cautions that by their nature, forward-looking statements involve risk
or uncertainty and that actual results could 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 forward-looking statements
involve risks and uncertainties including, but not limited to, the
effects of SFAS 91, SFAS 133, and SFAS 159, certain regulatory
requirements, and the Bank's ability to pay dividends out of retained
earnings. We undertake no obligation to revise or update publicly any
forward-looking statements for any reason.

Federal Home Loan Bank of San Francisco
Amy Stewart, 415-616-2605
stewarta@fhlbsf.com

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