The Federal Home Loan Bank of Boston has reported its preliminary, unaudited financial results for the third quarter of 2026, announcing a net income of $66.4 million. The bank also declared a cash dividend equal to an annual yield of 6.72%, reflecting its strong financial position and commitment to its members. This announcement is significant as it underscores the bank's ongoing efforts to support affordable housing and community development initiatives.
Founded as a federally chartered corporation, the Federal Home Loan Bank of Boston operates within the SIC category of Federal & Federally-Sponsored Credit Agencies (SIC 6111). The bank has been actively involved in providing financial services to its member institutions, which include banks and credit unions. Its recent filings include multiple 8-K forms, with the most recent dated October 23, 2026, detailing its financial performance and dividend declaration.
According to the filing, the bank's board of directors declared a cash dividend based on the approximate daily average SOFR yield for the third quarter of 2026 plus 300 basis points. The dividend will be paid on November 3, 2026, based on the average stock outstanding for the third quarter. The bank's president and CEO, Timothy J. Barrett, noted that the bank's earnings remained steady, supported by higher net interest income, which is crucial for maintaining its operations and fulfilling its obligations to members.
The financial results indicate a modest increase in net income from $66.0 million in the third quarter of 2025 to $66.4 million in the same period this year. Notably, net interest income after provisions for credit losses rose to $101.7 million, primarily driven by a significant increase in long-term interest rates and growth in mortgage-backed securities and mortgage loans. However, the bank also faced challenges, including a decline in average advances and lower income from its capital investments.
As of September 30, 2026, the Federal Home Loan Bank of Boston reported total assets of $70.3 billion, an increase from $68.8 billion at the end of 2025. Advances totaled $38.9 billion, reflecting a slight increase from the previous year. The bank's total capital was reported at $3.8 billion, showing a modest increase attributed to retained earnings despite some losses from higher long-term interest rates.
The bank's commitment to affordable housing was evident, as it set aside nearly $10 million during the quarter for related programs. This included $7.7 million for the Affordable Housing Program and additional contributions to discretionary housing and community investment programs. The bank's focus on community development distinguishes it from other players in the federally-sponsored credit agency sector.
Looking ahead, the bank plans to file its quarterly report on Form 10-Q for the quarter ended September 30, 2026, next month. This filing will provide further details on its financial performance and strategic initiatives. The Federal Home Loan Bank of Boston continues to navigate the complexities of the financial landscape while prioritizing its mission to support its members and the communities they serve.