Strong performance allowed for significant contributions to housing programs
The Federal Home Loan Bank of Boston has published its preliminary and unaudited results for the fourth quarter and the entire year of 2023.
The bank reported a quarterly net income of $51.5 million and an annual net income of $257.3 million.
This quarterly net income is a slight decrease from the $55.4 million seen during the same period in 2022, as the bank saw “an uptick in certain noninterest expenses.”
According to the bank, spending in this area included contributions to the Affordable Housing Program, discretionary housing, community investment expenses, and operating costs.
Together, these expenses surged by $13.1 million, but was somewhat mitigated by an $8.8 million increase in net interest income after accounting for credit loss provisions.
As for its annual net income, the bank saw a big jump from $184.2 million in 2022 as it benefited from a $92.9 million rise in net interest income after provision for credit losses.
Additionally, the board of directors announced a dividend with an annual yield of 8.40%, which equates to the daily average of the Secured Overnight Financing Rate for the fourth quarter, plus 300 basis points.
President and CEO Timothy J. Barrett said the bank’s 2023 performance was a result of “stronger demand for advances and an increase in net interest income.”
With its “robust” results, Barrett noted that FHLBank Boston was able to set aside $28.6 million for the Affordable Housing Program.
The bank also made voluntary contributions totaling $14.9 million, Barret said. These contributions went toward various housing and community investment programs, including Jobs for New England (JNE), Housing Our Workforce (HOW), and Lift Up Homeownership.
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