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

FEDERAL HOME LOAN BANK OF BOSTON ANNOUNCES 2026

SECOND QUARTER RESULTS, DECLARES DIVIDEND

BOSTON (July 24, 2026) - The Federal Home Loan Bank of Boston announced its preliminary, unaudited second quarter financial results for 2026, reporting net income of $45.2 million for the quarter. The Bank expects to file its quarterly report on Form 10-Q for the quarter ending June 30, 2026, with the U.S. Securities and Exchange Commission next month.

"The Bank's strong financial performance during the second quarter was primarily driven by increased member demand for advances and for residential mortgage loan sales to the Bank through the Mortgage Partnership Finance® program," said President and CEO Timothy J. Barrett. "Income from these activities fueled our support for affordable homeownership and economic development throughout New England through a $5.0 million required contribution to our Affordable Housing Program (AHP) and $19.3 million in voluntary contributions to AHP and our other housing and community investment programs."

Second Quarter 2026 Operating Highlights:

•Net income was $45.2 million for the three months ended June 30, 2026, a decrease from $47.0 million for the second quarter of 2025 primarily due to a decrease in net interest income after provision for credit losses partially offset by a decline in discretionary housing and community investment program expenses.

•Net interest income after provision for credit losses was $93.3 million in the second quarter of 2026, compared to $97.8 million for the second quarter of 2025, primarily driven by a decrease in short-term interest rates, a $2.8 billion decline in average advances, partially offset by a $718.2 million increase in average mortgage-backed securities and a $590.1 million increase in average mortgage loans.

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

•A total of $6.9 million was set aside for the Affordable Housing Program, which includes a $5.0 million statutory assessment and a $1.9 million voluntary contribution during the quarter.

•$17.4 million was contributed to the Bank's discretionary housing and community investment programs.

June 30, 2026 Financial Condition Highlights:

•Total assets increased to $77.3 billion at June 30, 2026, up from $68.8 billion at year-end 2025.

•Advances totaled $45.0 billion at the end of the quarter, an increase of $6.2 billion from $38.8 billion at the end of 2025.

•Investments increased to $27.2 billion at June 30, 2026, up from $25.2 billion at year-end 2025, primarily attributable to increases in short-term money-market investments and mortgage-backed securities.

•Total capital was $4.1 billion, an increase of $292.4 million from $3.8 billion at year-end 2025, primarily attributable to the increase in advances.

•As of June 30, 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 March 31, 2026.

Dividend:

•A dividend equal to an annual yield of 6.67% was declared by the Bank's board of directors. The dividend, based on average stock outstanding for the second quarter of 2026, will be paid on August 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)

						6/30/2026						3/31/2026						12/31/2025
ASSETS
Cash and due from banks						$	15,190					25,930						$	1,184
Advances						44,952,558						40,516,560						38,762,563
Investments (1)						27,225,623						25,989,186						25,206,343
Mortgage loans held for portfolio, net						4,527,656						4,362,657						4,285,722
Other assets						601,287						524,016						556,837
Total assets						$	77,322,314					$	71,418,349					$	68,812,649
LIABILITIES
Consolidated obligations, net						$	71,843,780					66,224,263						$	63,625,913
Deposits						886,999						874,209						915,299
Other liabilities						519,769						461,751						492,098
CAPITAL
Class B capital stock						2,204,459						2,019,932						1,936,610
Retained earnings - unrestricted						1,427,624						1,423,025						1,421,472
Retained earnings - restricted (2)						572,463						563,425						554,561
Total retained earnings						2,000,087						1,986,450						1,976,033
Accumulated other comprehensive loss						(132,780)						(148,256)						(133,304)
Total capital						4,071,766						3,858,126						3,779,339
Total liabilities and capital						$	77,322,314					$	71,418,349					$	68,812,649
Total regulatory capital-to-assets ratio (3)						5.4		%				5.6		%				5.7		%
Ratio of market value of equity (MVE) to par value of capital stock (4)						180		%				185		%				188		%

Income Statement Highlights

(Dollars in thousands)

(Unaudited)

						For the Three Months Ended																		For the Six Months Ended
						6/30/2026						3/31/2026						6/30/2025						6/30/2026						6/30/2025
Total interest income						$	746,702					$	687,447					$	874,304					$	1,434,149					$	1,735,095
Total interest expense						653,261						601,701						776,269						1,254,962						1,544,271
Net interest income						93,441						85,746						98,035						179,187						190,824
Net interest income after provision for credit losses						93,341						85,746						97,827						179,087						190,616
Other income						2,278						238						2,223						2,516						6,125
Operating expense						22,047						21,900						21,727						43,947						42,205
Federal Housing Finance Agency and Office of Finance						2,777						2,582						2,696						5,359						5,485
AHP voluntary contribution						1,934						3,962						2,238						5,896						6,672
Discretionary housing and community investment programs (5)						17,405						6,569						20,142						23,974						24,959
Other expense						1,230						1,717						1,063						2,947						1,903
AHP assessment						5,036						4,935						5,226						9,971						11,568
Net income						$	45,190					$	44,319					$	46,958					$	89,509					$	103,949
Performance Ratios: (6)
Return on average assets						0.24		%				0.26		%				0.24		%				0.25		%				0.27		%
Return on average equity (7)						4.58		%				4.77		%				4.84		%				4.68		%				5.36		%
Net interest spread						0.28		%				0.28		%				0.25		%				0.28		%				0.24		%
Net interest margin						0.50		%				0.51		%				0.51		%				0.50		%				0.50		%

(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.

"Mortgage Partnership Finance" is a registered trademark of the Federal Home Loan Bank of Chicago.

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