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BOSTON — The Federal Home Loan Bank of Boston (the
Bank) announced the following unaudited results for the quarter
ended September 30, 2007:
Third Quarter 2007 Balance-Sheet Highlights
Total assets rose 32.0 percent to $75.9 billion at September
30, 2007, up from $57.5 billion at yearend 2006. Advances
increased 50.8 percent to $56.3 billion, compared with $37.3
billion at yearend 2006, and represented 74.2 percent of
total assets. During the third quarter of 2007, advances
balances increased dramatically during the months of August
and September as a result of a liquidity shortage that affected
the U.S. banking system, as well as the consolidation and
re-chartering of banking subsidiaries of a member institution.
As a result of this member’s consolidation, advances
borrowing that had been conducted in other FHLBank districts
was effectively transferred to the Bank. Investments and
short-term money-market instruments decreased to $14.9 billion
at September 30, 2007, compared with $15.2 billion at yearend
2006. Mortgage assets declined to $4.1 billion at September
30, 2007, compared with $4.5 billion at yearend 2006. Capital
rose 28.8 percent to $3.3 billion at September 30, 2007,
compared with $2.5 billion at yearend 2006.
Third Quarter 2007 Operating Results
Net income for the third quarter was $50.2 million, compared
with $50.3 million for the same period in 2006. The $81,000
decrease is due to a $3.3 million decrease in net interest
income, which was primarily attributable to a reduction in
net interest spreads relative to funding costs related to
the Bank’s advances, MPF and MBS portfolios, and a
$654,000 increase in other expense. These declines were offset
by an increase in other income of $3.9 million, which was
primarily attributable to improvement in net gain on derivatives
and hedging activities. The Bank’s net interest spread
for the third quarter of 2007 was 0.23 percent, a three-basis-point
decline from the net interest spread for the same period
in 2006.
The Federal Home Loan Bank of Boston is a cooperatively
owned wholesale bank for housing finance in the six New England
states. Its mission is to support the residential-mortgage
and community-development lending activities of its members,
which include over 450 financial institutions across New
England. To accomplish its mission, the Bank utilizes private-sector
capital to provide members and other qualified customers
with reliable access to low-cost wholesale funds, liquidity,
a competitive outlet for the sale of loans, special lending
programs, technical assistance, and other products and services.
For more information, see the Bank's backgrounder. |
