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Federal Home Loan Bank of Boston Announces 2025 Q2 Results

On July 25, 2025, the Federal Home Loan Bank of Boston released its preliminary, unaudited financial results for the second quarter of 2025. The report indicates a net income of $47.0 million for the quarter, reflecting a notable decrease from the $70.2 million reported for the same period in 2024. This decrease of $23.2 million can be attributed to various factors impacting net interest income, including a decline in short-term yields.

In light of these results, the Board of Directors has declared a dividend yielding 7.38%. This reflects the daily average of the Secured Overnight Financing Rate plus an additional 300 basis points for the second quarter of 2025. The dividend will be distributed on August 4, 2025, to shareholders, although the actual payment of dividends is always subject to board discretion.

“FHLBank Boston maintained steady performance during this quarter, primarily fueled by increased demand from members for advances and the acquisition of residential mortgages,” stated Timothy J. Barrett, President and CEO of FHLBank Boston. The bank has reiterated its commitment to promoting affordable housing and bolstering economic development initiatives throughout New England, contributing $5.2 million to its Affordable Housing Program (AHP) and an additional $22.4 million towards other housing and community investment programs.

Operating Highlights for Q2 2025

The financial landscape during the second quarter has been influenced by external economic factors and the monetary policies set by the Federal Open Market Committee (FOMC), which maintained a federal funds rate target between 425 and 450 basis points. While intermediate-term interest rates saw a decline, long-term interest rates have increased, reflecting a mixed economic climate.

Net interest income was reported at $97.8 million after provisions for credit losses—down from $108.7 million in Q2 of the previous year. This drop is largely a result of a $10.8 million reduction in income along with an increased expense of $11.2 million tied to the discretionary housing and community investment programs—including the AHP contributions. Notably, the Bank's net interest spread reduced to 0.25%, down 3 basis points from the comparable period in 2024, while the net interest margin also fell to 0.51%, decreasing by 12 basis points.

Additionally, total assets rose significantly to $78.7 billion, marking a 9.3% increase from the year-end total of $72.0 billion. Advances to member banks totaled $47.2 billion, up by $2.0 billion, indicating robust demand among members for borrowing.

Important Balance Sheet Figures

By June 30, 2025, the total capital for FHLBank Boston reached $4.0 billion, an increase of $124.7 million compared to the 2024 year-end figures. This growth was supported by a rise in capital stock due to increased advances. Furthermore, retained earnings expanded to $1.9 billion, reflecting a stable financial position despite the ongoing economic challenges. The Bank has successfully adhered to all regulatory capital ratios required by its regulators.

In closing, the Federal Home Loan Bank of Boston continues its mission as a wholesale banking institution focused on supporting housing finance and community development across New England. The recent results underscore its ongoing commitment to affordability and accessibility in housing, demonstrating their proactive approach to enhancing the economic opportunities for residents in the region.

For more specific inquiries or detailed financial data, interested parties can reach out to Adam Coldwell at 617-292-9774.