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While interest rate shifts saw income decrease, the Federal Home Loan Bank of Boston saw its assets increase in the third quarter of 2024.
Net income was $60.4 million in the quarter compared to $70.1 million in the third quarter of 2023 according to its quarterly earnings report. FHLB Boston stated that this was primarily the result of a decrease in net interest income after a reduction of credit losses of $14.3 million. These results led to a $6.7 million statutory contribution to the bank’s Affordable Housing Program for the quarter.
FHLB Boston’s total assets increased by $5.3 billion (7.8 percent) to $72.4 billion in the third quarter. This was an increase from $67.1 billion in 2023. Total investments reached $26.1 billion at the quarter’s end, an increase of $5.0 billion from $21.2 billion in 2023, driven primarily by growth in short-term investments and mortgage-backed securities according to FHLB Boston.
“FHLBank Boston’s solid financial performance continues to support a broad range of liquidity and funding solutions for our members, along with existing programs and initiatives that improve housing affordability and increase community development throughout New England,” FHLB Boston President and CEO Timothy J. Barrett said in a statement. “We were pleased to recently launch the CDFI Advance focused on helping Community Development Financial Institutions and the Permanent Rate Buydown product designed to make homeownership more attainable for lower-income households through interest-rate reductions of up to 2 percentage points.”
The permanent rate buydown product for mortgage loans purchased from participating financial institutions is designed to make homeownership more attainable for lower-income households. The product enables FHLB Boston’s bank and credit union members that utilize its Mortgage Partnership Finance Program to reduce interest rates paid by income-eligible borrowers by up to 2 percentage points.
Mortgage loans totaled $3.5 billion at the end of the quarter, an increase of $484.2 million from 2023.
