Date: 201808
Local time of day: 1801-2400
Location: N90.TRACON, NY
Flight conditions: Mixed
Light: Night
Aircraft: B737-700
Operator: Air Carrier
Operating under: Part 121
Flight plan: IFR
Mission: Passenger
Flight phase: Cruise
Airspace: Class E ZNY
ATC / advisory: Center ZNY; TRACON N90
Reporter organization: Air Carrier
Reporter function: First Officer; Pilot Not Flying
Reporter qualification: Flight Crew Air Transport Pilot (ATP); Flight Crew Multiengine; Flight Crew Commercial
Human factors: Distraction; Human-Machine Interface; Situational Awareness; Workload; Time Pressure
Second reporter function: Captain; Pilot Flying
Anomaly: Deviation - Track / Heading All Types; Deviation / Discrepancy - Procedural Clearance
Detector: Person Air Traffic Control; Person Flight Crew
When detected: In-flight
Result: Air Traffic Control Issued New Clearance; Flight Crew Became Reoriented; Flight Crew Requested ATC Assistance / Clarification; General Flight Cancelled / Delayed
Contributing factors: Weather; Procedure; Aircraft; Human Factors
Primary problem: Aircraft

Narrative: We were given holding instructions along the arrival while we wait for a storm to pass over our destination. It was standard holding as published and entered the hold without any issues. We proceeded to hold for about 45 minutes. During that time; the Captain and I discussed our options with regards to fuel and diversions; updated the flight attendants; talked over ACARS with Dispatch; and updated the passengers. As time went on; the Captain stepped in and helped me with my PA's and Dispatch messages while he was Pilot Flying. I was OK with that because; at the time; it was a low workload situation.About 50 minutes after we entered the hold; the Captain was making another PA. While he was doing that; ATC had cleared us to continue on the arrival and gave us a frequency change. The problem was that ATC had given us that while we were on the inbound leg only 20 seconds or so from the holding fix. As soon as the Captain was done with the PA; I told him about the clearance so he could press EXIT HOLD. By that point; we had passed the holding fix and I pressed it anyways and told him while switching frequencies. This resulted in us continuing a full 360 degree right turn back towards the holding fix in order to join back up with the arrival track.During that 360 turn; I check on with Approach and told them that the clearance was given late and we were doing one more turn. Approach acknowledged the information. About 30-40 seconds later; Approach said '[Call sign]; Center gave you a clearance to continue the arrival and wants to know why you continued another turn in the hold'. I explained for a second time to Approach that the clearance was given late and the FMC cycled past the holding fix before we had time to exit the hold. The flight continued uneventfully to the destination.The timing of the whole occurrence was the issue. The exit hold clearance was given very close to the holding fix and did not allow time for us to execute the clearance without performing an additional turn in the protected area of the hold. I immediately notified the new Air Traffic Controller; but he did not notify the previous Center Controller. Controllers should be aware that giving an exit hold clearance so close to the holding fix could result in an additional turn in the hold while we program the new information into the FMC. Also; it is very easy for the Pilot Flying to try to help the Pilot Monitoring during low-workload situations. In this case; I was OK with it. However; it backfired on us this time because it caused a slight delay in reprogramming the FMC. I should have insisted to the Captain that I will take care of PA's during the hold so he could be alert to changing ATC clearances.'


Second narrative: [Report narrative contained no additional information.]


Synopsis: B737-700 flight crew reported making a turn in holding after they had been cleared out of holding.