Federal Home Loan Bank’s net income for the fourth quarter of 2007 increased $76 million, or 49%, to $231 million from $155 million for the prior-year period.
The bank’s net interest income for 2007 was $931 million, up 11%, or $92 million, as compared with $839 million for 2006. Net interest income for the fourth quarter of 2007 improved $39 million, or 17%, to $267 million from $228 million for the same quarter of 2006.
The increases in net interest income were primarily driven by the effect of higher average capital, advances, and investment balances, partially offset by a lower net interest spread on the bank’s mortgage portfolio.
During 2007, total assets grew $78.1 billion, or 32%, to $323 billion from $244.9 billion at year end 2006, primarily as a result of growth in advances.
