FHLBank Boston Announces 2026 Second Quarter Results and Dividend
The Federal Home Loan Bank of Boston announced its preliminary, unaudited second quarter results for 2026, reporting net income of $45.2 million for the quarter. The Bank expects to file its quarterly report on Form 10-Q for the quarter ending June 30, 2026, with the U.S. Securities and Exchange Commission next month.
“The Bank’s strong financial performance during the second quarter was primarily driven by increased member demand for advances and for residential mortgage loan sales to the Bank through the Mortgage Partnership Finance® program,” said President and CEO Timothy J. Barrett. “Income from these activities fueled our support for affordable homeownership and economic development throughout New England through a $5.0 million required contribution to our Affordable Housing Program (AHP) and $19.3 million in voluntary contributions to AHP and our other housing and community investment programs.”
Second Quarter 2026 Operating Highlights
- Net income was $45.2 million for the three months ended June 30, 2026, a decrease from $47.0 million for the second quarter of 2025 primarily due to a decrease in net interest income after the provision of credit losses partially offset by a decline in discretionary housing and community investment expenses.
- Net interest income after the provision for credit losses was $93.3 million in the second quarter of 2026, compared to $97.8 million for the second quarter of 2025, primarily driven by a decrease in short-term interest rates, a $2.8 billion decline in average advances, partially offset by a $718.2 million increase in average mortgage-backed securities and a $590.1 million increase in average mortgage loans.
- Net interest spread was 0.28% during the second quarter of 2026, an increase of three basis points from the second quarter of 2025.
- A total of $6.9 million was set aside for the Affordable Housing Program, which includes a $5.0 million statutory assessment and a $1.9 million voluntary contribution during the quarter.
- $17.4 million was contributed to the Bank’s discretionary housing and community investment programs.
June 30, 2026 Financial Condition Highlights
- Total assets increased to $77.3 billion at June 30, 2026, up from $68.8 billion at year-end 2025.
- Advances totaled $45.0 billion at the end of the quarter, an increase of $6.2 billion from $38.8 billion at the
end of 2025. - Investments increased to $27.2 billion at June 30, 2026, up from $25.2 billion at year-end 2025, primarily
attributable to increases in short-term money-market investments and mortgage-backed securities. - Total capital was $4.1 billion, an increase of $292.4 million from $3.8 billion at year-end 2025, primarily
attributable to the increase in advances. - As of June 30, 2026, the Bank was in compliance with all regulatory capital ratios.
- The Bank is classified as “adequately capitalized” by its regulator, based on the most recent information available as of March 31, 2026.
Dividend
- A dividend equal to an annual yield of 6.67% was declared by the Bank’s board of directors. The dividend, based on average stock outstanding for the second quarter of 2026, will be paid on August 4, 2026. Future dividend declarations remain at the discretion of the board of directors.
