FEDERAL HOME LOAN BANK OF BOSTON ANNOUNCES 2026 FIRST QUARTER RESULTS, DECLARES DIVIDEND (Form 8-K)

FEDERAL HOME LOAN BANK OF BOSTON ANNOUNCES 2026

FIRST QUARTER RESULTS, DECLARES DIVIDEND

BOSTON (April 24, 2026) - The Federal Home Loan Bank of Boston announced its preliminary, unaudited first quarter financial results for 2026, reporting net income of $44.3 million for the quarter. The Bank expects to file its quarterly report on Form 10-Q for the quarter ending March 31, 2026, with the U.S. Securities and Exchange Commission next month.

"The Bank's consistent financial performance continues to support liquidity and funding solutions and facilitates our ongoing commitment to offer housing and community investment programs to our financial institution members. We are proud to serve as a crucial source of liquidity in all environments so our members can strengthen the communities they serve," said President and CEO Timothy J. Barrett.

First Quarter 2026 Operating Highlights:

•Net income was $44.3 million for the three months ended March 31, 2026, a decrease from $57.0 million for the first quarter of 2025 primarily due to a decrease in net interest income and other income and a faster initial pace of spending on discretionary housing and community investment programs.

•Net interest income was $85.7 million in the first quarter of 2026, compared to $92.8 million for the first quarter of 2025, primarily driven by significantly lower short-term interest rates, an $8.3 billion decline in average advances, and a $160.8 million decline in average capital.

•Net interest spread was 0.28% during the first quarter of 2026, an increase of six basis points from the first quarter of 2025.

•A total of $8.9 million was set aside for the Affordable Housing Program, which includes a $4.9 million statutory assessment and a $4.0 million voluntary contribution during the quarter.

•$6.6 million was contributed to the Bank's discretionary housing and community investment programs.

March 31, 2026 Financial Condition Highlights:

•Total assets increased to $71.4 billion at March 31, 2026, up from $68.8 billion at year-end 2025.

•Advances totaled $40.5 billion at the end of the quarter, an increase from $38.8 billion at the end of 2025.

•Total capital was $3.9 billion, an increase from $3.8 billion at year-end 2025, primarily attributable to the increase in advances.

•As of March 31, 2026, the Bank was in compliance with all regulatory capital ratios.

•The Bank is classified as "adequately capitalized" by its regulator, based on the most recent information available as of December 31, 2025.

Dividend:

•A dividend equal to an annual yield of 6.71% was declared by the Bank's board of directors. The dividend, based on average stock outstanding for the first quarter of 2026, will be paid on May 4, 2026. Future dividend declarations remain at the discretion of the board of directors.

About the Bank

The Federal Home Loan Bank of Boston is a cooperatively owned wholesale bank for housing finance in the six New England states. Its mission is to provide highly reliable wholesale funding and liquidity to its member financial institutions in New England. The Bank also develops and delivers competitively priced financial products, services, and expertise that support housing finance, community development, and economic growth, including programs targeted to lower-income households.

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

Federal Home Loan Bank of Boston

Balance Sheet Highlights

(Dollars in thousands)

(Unaudited)

						3/31/2026						12/31/2025						3/31/2025
ASSETS
Cash and due from banks						$	25,930					$	1,184					$	26,697
Advances						40,516,560						38,762,563						45,427,914
Investments (1)						25,989,186						25,206,343						26,965,568
Mortgage loans held for portfolio, net						4,362,657						4,285,722						3,765,267
Other assets						524,016						556,837						608,712
Total assets						$	71,418,349					$	68,812,649					$	76,794,158
LIABILITIES
Consolidated obligations, net						$	66,224,263					$	63,625,913					$	71,504,332
Deposits						874,209						915,299						810,253
Other liabilities						461,751						492,098						558,683
CAPITAL
Class B capital stock						2,019,932						1,936,610						2,207,384
Retained earnings - unrestricted						1,423,025						1,421,472						1,407,846
Retained earnings - restricted (2)						563,425						554,561						520,643
Total retained earnings						1,986,450						1,976,033						1,928,489
Accumulated other comprehensive loss						(148,256)						(133,304)						(214,983)
Total capital						3,858,126						3,779,339						3,920,890
Total liabilities and capital						$	71,418,349					$	68,812,649					$	76,794,158
Total regulatory capital-to-assets ratio (3)						5.6		%				5.7		%				5.4		%
Ratio of market value of equity (MVE) to par value of capital stock (4)						185		%				188		%				170		%

Income Statement Highlights

(Dollars in thousands)

(Unaudited)

						For the Three Months Ended
						3/31/2026						12/31/2025						3/31/2025
Total interest income						$	687,447					$	752,740					$	860,791
Total interest expense						601,701						667,166						768,002
Net interest income						85,746						85,574						92,789
Other income						238						5,272						3,902
Operating expense						21,900						23,346						20,478
Federal Housing Finance Agency and Office of Finance						2,582						3,120						2,789
AHP voluntary contribution						3,962						30						4,434
Discretionary housing and community investment programs (5)						6,569						276						4,817
Other expense						1,717						1,195						840
AHP assessment						4,935						6,295						6,342
Net income						$	44,319					$	56,584					$	56,991
Performance Ratios: (6)
Return on average assets						0.26		%				0.32		%				0.30		%
Return on average equity (7)						4.77		%				6.08		%				5.88		%
Net interest spread						0.28		%				0.24		%				0.22		%
Net interest margin						0.51		%				0.49		%				0.49		%

(1) Investments include available-for-sale securities, held-to-maturity securities, trading securities, interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold.

(2) The Bank's capital plan and a joint capital enhancement agreement among all Federal Home Loan Banks require the Bank to allocate a certain amount, generally not less than 20% of each of quarterly net income and adjustments to prior net income, to a restricted retained earnings account until a total required allocation is met. Amounts in the restricted retained earnings account are unavailable to be paid as dividends, which may be paid from current net income and unrestricted retained earnings. For additional information, see Item 5 - Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities in the Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 13, 2026 (the 2025 Annual Report).

(3) For additional information on the Bank's capital requirements, see Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources - Capital in the 2025 Annual Report.

(4) MVE equals the difference between the theoretical market value of assets and the theoretical market value of liabilities, and the ratio of MVE to par value of Bank capital stock can be an indicator of future net income to the extent that it demonstrates the impact of prior interest-rate movements on the capacity of the current balance sheet to generate net interest income. However, this ratio does not always provide an accurate indication of future net income. Accordingly, investors should not place undue reliance on this ratio and are encouraged to read the Bank's discussion of MVE, including discussion of the limitations of MVE as a metric, in Item 7A - Quantitative and Qualitative Disclosures About Market Risk - Measurement of Market and Interest Rate Risk in the 2025 Annual Report.

(5) We have certain discretionary subsidized advance and grant programs, including our Jobs for New England, Housing Our Workforce, Lift Up Homeownership, CDFI Advance, and permanent rate buydown programs. For additional information see Item 1 - Business - Targeted Housing and Community Investment Programs in the 2025 Annual Report.

(6) Yields for quarterly periods are annualized.

(7) Return on average equity is net income divided by the total of the average daily balance of outstanding Class B capital stock, accumulated other comprehensive loss, and total retained earnings.

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