FHLBank Boston Reports Q3 2026 Net Income of $66.4 Million

The Federal Home Loan Bank of Boston announced its preliminary, unaudited financial results for the third quarter of 2026. The Bank reported net income of $66.4 million for the three months ended September 30, 2026, a modest increase from $66.0 million in the same period 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 in the prior year. The increase was attributed to a significant rise in long-term interest rates during the quarter, alongside a $670.1 million increase in average mortgage-backed securities and a $580.3 million increase in average mortgage loans. These gains 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.

The Bank’s net interest spread widened to 0.34% during the third quarter, an increase of seven basis points from the prior year.

On the balance sheet, total assets increased to $70.3 billion as of 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 the end of 2025. Mortgage loans held for the portfolio increased $432.3 million since year-end 2025, reaching $4.7 billion. Total capital stood at $3.8 billion, an increase of $9.6 million from year-end 2025, primarily due to an increase in retained earnings, partially offset by an increase in accumulated other comprehensive loss resulting from higher long-term interest rates.

The Board of Directors declared a cash dividend equal to an annual yield of 6.72 percent. The dividend, based on average stock outstanding for the third quarter of 2026, will be paid on November 3, 2026. Additionally, the Bank set aside $7.7 million for its Affordable Housing Program, which includes a $7.5 million statutory assessment and a $239,000 voluntary contribution. An additional $2.2 million was contributed to the Bank’s discretionary housing and community investment programs.