Federal Home Loan Bank of Boston Stock

12 Months Ended

Dec. 31, 2019

Federal Home Loan Bank of Boston

Federal Home Loan Bank Stock [Line Items]

Federal Home Loan Bank of Boston Stock

8. FEDERAL HOME LOAN BANK OF BOSTON STOCK

As a voluntary member of the FHLB of Boston, the Bank is required to invest in stock of the FHLB of Boston (which is considered a restricted equity security) in an amount based upon its outstanding advances from the FHLB of Boston. At December 31, 2019 and December 31, 2018, the Bank’s investment in FHLB of Boston stock totaled $7.9 million and $6.8 million, respectively. No market exists for shares of this stock. The Bank’s cost for FHLB of Boston stock is equal to its par value. Upon redemption of the stock, which is at the discretion of the FHLB of Boston, the Bank would receive an amount equal to the par value of the stock. At its discretion, the FHLB of Boston may also declare dividends on its stock.

The Bank’s investment in FHLB of Boston stock is reviewed for impairment at each reporting date based on the ultimate recoverability of the cost basis of the stock. As of December 31, 2019 and December 31, 2018, no impairment has been recognized.