#United States #Boston #affordable housing #Federal Home Loan Bank #Community Development

Federal Home Loan Bank of Boston Reports Third Quarter Results for 2026

On October 23, 2026, the Federal Home Loan Bank of Boston disclosed its preliminary financial results for the third quarter, showcasing net income of $66.4 million. This figure marks a modest increase from the previous year's $66 million, signaling stable performance amid changing economic conditions.

The Bank's President and CEO Timothy J. Barrett stated that higher net interest income underpins their steady earnings. He remarked, "Our strong balance sheet positions us well to meet members' evolving liquidity needs and we proudly set aside nearly $10 million during the quarter for affordable housing and community development programs."

Operating Highlights

For the three months ending September 30, 2026:

• - Net income: $66.4 million, representing a slight rise from prior year.
• - Net interest income after provision for credit losses: Rose to $101.7 million, up from $100.9 million in the same period last year. This surge can be attributed largely to significant increases in long-term interest rates, alongside boosts in mortgage-backed securities and mortgage loans of $670.1 million and $580.3 million, respectively.
• - Net interest spread: Improved to 0.34%, an increase of seven basis points from the third quarter of 2025, emphasizing the Bank’s strategic positioning in a fluctuating interest rate environment.

In terms of community support, the Bank allocated $7.7 million to the Affordable Housing Program, which includes both statutory assessments and voluntary contributions aimed at enhancing housing accessibility. Furthermore, $2.2 million was directed towards other discretionary housing and community investment programs during this quarter.

Financial Condition Overview

As of September 30, 2026, the Bank reported significant growth in its total assets, which soared to $70.3 billion, compared to $68.8 billion at the end of 2025. Key highlights include:

• - Advances: Totalled $38.9 billion, a slight increase reflecting ongoing borrower confidence.
• - Investments: Rose to $26.2 billion, primarily due to growth in short-term money-market investments and mortgage-backed securities.
• - Mortgage loans: Expanded by $432.3 million since the end of 2025, indicating robust lending activities.
• - Total capital: Stood at $3.8 billion, with increases attributed to retained earnings despite some losses stemming from higher long-term interest rates.

Reflecting on regulatory compliance, as of September 30, 2026, the Bank maintained adherence to all its capital ratios. Based on the latest data from June 30, 2026, it has been classified as “adequately capitalized.”

Dividend Declaration

In a significant move, the Board of Directors declared a dividend that equates to an annual yield of 6.72% based on average stock outstanding for the third quarter. This dividend is scheduled for payment on November 3, 2026. Future dividends will be determined at the discretion of the Board, reiterating the Bank's commitment to delivering value to its stakeholders.

About the Institution

The Federal Home Loan Bank of Boston serves as a cooperatively owned wholesale bank dedicated to housing finance across six New England states. It aims to provide reliable funding and liquidity to member financial institutions while fostering economic growth and community development through affordable housing initiatives.

Reach out for further details or inquiries:

Contact: Adam Coldwell
Phone: 617-292-9774
Email: [email protected]