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BOSTON — The Federal Home Loan Bank of Boston (the
Bank) announced the following:
2006 Balance-Sheet Highlights
Total assets were $57.5 billion at December 31, 2006, relatively
unchanged from $57.7 billion at the close of 2005. Advances
were down 1.9 percent to $37.3 billion, compared with $38.1
billion at yearend 2005, and represented 65.0 percent of
total assets, compared with 66.0 percent at yearend 2005.
While this decline was due primarily to net reductions
in borrowings by several large members late in the year,
average advances borrowings for the year as a whole increased
$9.1 billion to $40.1 billion. Investments, including short-term
placements and securities, increased 5.4 percent to $15.2
billion, compared with $14.5 billion at yearend 2005. Yearend
member-mortgage assets declined 7.9 percent to $4.5 billion,
compared with $4.9 billion at yearend 2005, reflecting
a softening in the home-mortgage market that began late
in 2005.
2006 Operating and Capital Results
Net income for 2006 increased 44.8 percent to $195.8 million,
compared with $135.3 million for 2005. Capital at yearend
2006 was $2.5 billion, compared with $2.7 billion at yearend
2005, generally the result of buying back capital stock
from members. Net interest income after provision for credit
losses on mortgage loans increased $50.8 million, or 20.1
percent, to $303.9 million for the year ended December
31, 2006, from $253.1 million for the year ended December
31, 2005. The increase in net interest income was driven
primarily by higher interest rates, higher average capital
levels, and as described above, an increase in average
advances balances. The Bank’s contribution to the
Affordable Housing Program rose to $21.8 million in 2006
due to increased earnings, up from $15.2 million the previous
year.
First Quarter 2007 Dividend
The Bank’s board of directors declared a dividend
rate with an equivalent annual yield of 6.75 percent. The
dividend, based on average stock outstanding for the fourth
quarter, will be paid on March 2, 2007.
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 460 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.
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