Combined net income for the 12 Federal Home Loan Banks dropped 26.4 percent to $537 million in the third quarter, according to the Federal Home Loan Bank Office of Finance. The FHLBanks’ net income for the nine months ended Sept. 30, 2013, was $1.847 billion, a 5.0 percent decrease compared to the same period in 2012. “These decreases were driven by lower net interest income, partially offset by improvements in non-interest income,” noted the Office of Finance.