Profits at The Federal Home Loan Bank of Boston edged up in the first quarter, rising to $23.1 million from $22.9 million for the first quarter of 2010.
Contributing to the net income during the first quarter of 2011 was a realized gain of $8.4 million on the sale of available-for-sale agency and FDIC-guaranteed corporate debentures, according to a statement.
Additionally, the bank’s board of directors declared a dividend equal to an annual yield of 0.31 percent, which is the approximate daily average three-month LIBOR yield for the first quarter.
The dividend, based on average stock outstanding for the first quarter of 2011, will be paid May 3. The bank’s board of directors anticipates it will continue to declare modest cash dividends through 2011, but cautioned that adverse events such as a negative trend in credit losses on the bank’s private-label mortgage-backed securities (MBS) or mortgage portfolio, a meaningful decline in income, or regulatory disapproval could lead to reconsideration of this plan.
"We are very pleased that our efforts to manage risk and expenses, while continuing to meet the evolving funding needs of our members, have led to six consecutive quarters of profitability, growth in retained earnings, and now two successive dividend payments," said President and Chief Executive Officer Edward A. Hjerpe III.
