CEO describes financial performance as 'steady' in second quarter
The Federal Home Loan Bank of Boston has announced its preliminary, unaudited financial results for the second quarter of 2025, reporting a net income of $47.0 million.
Alongside the financial update, the bank’s board of directors declared a dividend with an annual yield of 7.38%, calculated as the daily average of the Secured Overnight Financing Rate for the second quarter of 2025 plus 300 basis points.
According to a news release, the reported net income marks a decrease of $23.2 million compared to the $70.2 million recorded in the same period of 2024. This decline was primarily attributed to a $10.8 million decrease in net interest income after provision for credit losses, coupled with an $11.2 million increase in expenses related to discretionary housing and community investment programs, including voluntary Affordable Housing Program (AHP) contributions.
Despite the decrease in net income, the bank made a statutory contribution of $5.2 million to its Affordable Housing Program for the quarter.
Overall, the bank’s commitment to community investment remained strong. Total contributions to housing and community investment programs reached $22.4 million, encompassing the statutory AHP contribution, a $20.1 million contribution to discretionary programs, and a voluntary $2.2 million contribution to the AHP.
“FHLBank Boston had steady financial performance during the second quarter primarily driven by member demand for advances and residential mortgage acquisitions,” noted Timothy J. Barrett, president and CEO. He added that the income generated from these activities enabled the bank to “support affordable homeownership and economic development throughout New England.”
On the balance sheet, total assets saw a substantial increase of $6.7 billion, or 9.3%, reaching $78.7 billion at June 30, 2025, up from $72.0 billion at year-end 2024. This growth was driven by increases in advances, which rose by $2.0 billion to $47.2 billion, and investments, which grew by $4.5 billion to $27.0 billion.
Mortgage loans also increased by $262.2 million, totaling $3.9 billion. The bank remains in compliance with all regulatory capital ratios and is classified as “adequately capitalized” by the Federal Housing Finance Agency.
This dividend, based on average stock outstanding for the quarter, is scheduled for payment on August 4, 2025.
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