Press Release

San Francisco – The Federal Home Loan Bank of San Francisco today announced that, based on the information available to date, it is projecting that the dividend rate for the third quarter of 2004 will be approximately 3.90% (annualized). The Bank’s dividend rate for the second quarter of 2004 was 4.68% (annualized).

The Bank expects to calculate and announce the actual dividend rate once the Office of Finance issues the combined financial statements of the Federal Home Loan Banks, which is scheduled to take place on Tuesday, November 9, 2004.

The Bank is providing this projection for informational purposes only. The Bank has not yet closed its books for the third quarter. The actual dividend rate may be significantly different as a result of a number of factors, including the effects of SFAS 133 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.

This announcement is provided for informational purposes only and contains information and forward-looking statements about the Bank’s expectations. Such information and statements involve certain risks and uncertainties, and results will depend on actual events and developments.

The Federal Home Loan Bank of San Francisco delivers low-cost funding and other services that help member financial institutions make home mortgages 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 serves and is owned by 342 commercial bank, savings institution, credit union, thrift and loan, and insurance company members headquartered in Arizona, California, and Nevada.

Contact:
Amy Stewart, (415) 616-2605
stewarta@fhlbsf.com

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