FHLBank Boston Announces 2026 Third Quarter Results and Dividend
The Federal Home Loan Bank of Boston announced its preliminary, unaudited third quarter results for 2026, reporting net income of $66.4 million for the quarter. The Bank expects to file its quarterly report on Form 10-Q for the quarter ending September 30, 2026, with the U.S. Securities and Exchange Commission next month.
“FHLBank Boston’s third-quarter earnings remained steady, supported by higher net interest income,” said President and CEO Timothy J. Barrett. “Our strong balance sheet positions us well to meet members’ evolving liquidity needs, and we were proud to set aside nearly $10 million during the quarter for our affordable housing and community development programs.”
Third Quarter 2026 Operating Highlights
- Net income was $66.4 million for the three months ended September 30, 2026, a modest increase from $66.0 million in the third quarter of 2025.
- Net interest income after provision for credit losses was $101.7 million for the third quarter of 2026, compared to $100.9 million for the third quarter of 2025. The increase was primarily driven by a significant increase in long-term interest rates during the third quarter of 2026, a $670.1 million increase in average mortgage-backed securities, and a $580.3 million increase in average mortgage loans. These favorable factors were partially offset by a $6.0 billion decline in average advances and lower income from investing the Bank’s capital due to decreases in average capital and short-term interest rates compared to the third quarter of 2025.
- Net interest spread was 0.34% during the third quarter of 2026, an increase of seven basis points from the third quarter of 2025, primarily benefiting from the significant increase in long-term interest rates during the third quarter of 2026.
- A total of $7.7 million was set aside for the Affordable Housing Program, which includes a $7.5 million statutory assessment and a $239,000 voluntary contribution during the third quarter of 2026.
- Additionally, $2.2 million was contributed to the Bank’s discretionary housing and community investment programs in the third quarter of 2026.
September 30, 2026 Financial Condition Highlights
- Total assets increased to $70.3 billion at September 30, 2026, from $68.8 billion at year-end 2025.
- Advances totaled $38.9 billion at the end of the quarter, an increase of $122.9 million from $38.8 billion at the end of 2025.
- Investments increased to $26.2 billion at September 30, 2026, from $25.2 billion at year-end 2025, attributable to increases in short-term money-market investments, mortgage-backed securities, and state housing-finance agency bonds.
- Mortgage loans increased $432.3 million since year-end 2025, to $4.7 billion at September 30, 2026.
- Total capital was $3.8 billion, an increase of $9.6 million from year-end 2025, primarily attributable to an increase in retained earnings, partially offset by an increase in accumulated other comprehensive loss resulting from higher long-term interest rates.
- As of September 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 June 30, 2026..
Dividend
- A dividend equal to an annual yield of 6.72% was declared by the Bank’s board of directors. The dividend, based on average stock outstanding for the third quarter of 2026, will be paid on November 3, 2026. Future dividend declarations remain at the discretion of the board of directors.
