BOSTON, July 19, 2024 /PRNewswire/ -- The Federal Home Loan Bank of Boston announced its preliminary, unaudited second quarter results for 2024, reporting net income of $70.2 million for the quarter. The Bank expects to file its quarterly report on Form 10-Q for the quarter ending June 30, 2024, with the U.S. Securities and Exchange Commission next month. The Bank's board of directors has declared a dividend equal to an annual yield of 8.41%, the daily average of the Secured Overnight Financing Rate for the second quarter of 2024 plus 300 basis points. The dividend, based on average stock outstanding for the second quarter of 2024, will be paid on August 2, 2024. As always, dividends remain at the discretion of the board. "FHLBank Boston had strong and steady financial performance during the second quarter. Our engagement with members continues to be impactful in areas of liquidity and residential mortgage acquisitions and the income resulting from those activities enabled us to triple year-over-year voluntary contributions to discretionary housing and community investment programs," said President and CEO Timothy J. Barrett. "These programs make homeownership more affordable for lower income homebuyers and make business loans less expensive for small businesses that create and preserve jobs throughout New England." Second Quarter 2024 Operating Highlights The Bank's overall results of operations are influenced by the economy, interest rates and members' demand for advances. During the second quarter of 2024, the Federal Open Market Committee (FOMC) maintained the target range for the federal funds rate between 525 and 550 basis points. During the quarter, the yield curve remained inverted with a modest increase in long-term interest rates reflecting continued strength in economic conditions. Market expectations of Federal Reserve rate cuts were pushed back to later in 2024. Net income for the three months ended June 30, 2024, was $70.2 million, compared with net income of $78.6 million for the same period of 2023, primarily the result of an increase of $7.3 million in voluntary contributions to housing and community investment programs (5) from $2.5 million for three months ended June 30, 2023, to $9.8 million for the same period in 2024. These results led to a $7.8 million statutory contribution to the Bank's Affordable Housing Program for the quarter. In addition, the Bank made a voluntary contribution of $1.3 million to the Affordable Housing Program for the quarter ended June 30, 2024. Net interest income after provision for credit losses for the three months ended June 30, 2024, was $108.7 million, compared with $109.6 million for the same period in 2023. The $1.0 million decrease in net interest income after provision for credit losses was primarily driven by a $6.8 billion decline in average advances, a $5.0 million unfavorable variance in net unrealized gains and losses on fair value hedge ineffectiveness attributable to a larger increase in intermediate-term interest rates during the quarter ended June 30, 2023, compared to the same period in 2024, and a $4.1 million decrease in mortgage backed security net accretion. The decrease in net interest income after provision for credit losses was partially offset by a $1.9 billion increase in our average mortgage backed securities portfolio, a $499.5 million increase in our average mortgage loan portfolio, and an increase in yields in the quarter ended June 30, 2024, resulting from higher market interest rates compared to the same period in 2023. Net interest spread was 0.28% for the three months ended June 30, 2024, an increase of one basis point from the same period in 2023, and net interest margin was 0.63%, an increase of four basis points from the three months ended June 30, 2023. The increase in net interest spread and margin was primarily attributable to higher market interest rates. June 30, 2024 Balance-Sheet Highlights Total assets increased $1.6 billion, or 2.4%, to $68.8 billion at June 30, 2024, up from $67.1 billion at year-end 2023. Advances were $42.3 billion at June 30, 2024, an increase of $335.8 million, or 0.8%, from $42.0 billion at December 31, 2023. Total investments were $22.4 billion at June 30, 2024, an increase of $1.3 billion from $21.2 billion at the prior year end, driven primarily by growth in mortgage backed securities. Mortgage loans totaled $3.3 billion at June 30, 2024, an increase of $286.2 million from year-end 2023 as mortgage sales to the Bank increased. Total capital at June 30, 2024, was $3.7 billion, an increase of $143.4 million from $3.5 billion at year-end 2023. During 2024, capital stock increased by $51.8 million, primarily attributable to the increase in advances. Total retained earnings grew to $1.9 billion during 2024, an increase of $65.5 million, or 3.7%, from December 31, 2023. Of this amount, restricted retained earnings(3) totaled $480.8 million at June 30, 2024. Accumulated other comprehensive loss totaled $268.5 million at June 30, 2024, an improvement of $26.0 million from accumulated other comprehensive loss as of December 31, 2023. The Bank was in compliance with all regulatory capital ratios at June 30, 2024, and in the most recent information available was classified "adequately capitalized" by its regulator, the Federal Housing Finance Agency, based on the Bank's financial information at March 31, 2024.(1) 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   Federal Home Loan Bank of Boston Balance Sheet Highlights (Dollars in thousands) (Unaudited) 6/30/2024 3/31/2024 12/31/2023 ASSETS Cash and due from banks $              50,096 $              70,616 $              53,412 Advances 42,294,369 39,905,499 41,958,583 Investments (2) 22,436,579 22,263,743 21,167,632 Mortgage loans held for portfolio, net 3,345,541 3,146,391 3,059,331 Other assets 642,793 644,027 903,316 Total assets $       68,769,378 $       66,030,276 $       67,142,274 LIABILITIES