The Federal Home Loan Banks, continuing to battle low interest rates that depress the income they earn on advances to members, saw their combined net income rise only slightly in the first quarter of 2003. According to the latest financial report released by the FHLBanks’ Office of Finance, the 12 Banks earned a total $456 million in the first three months of the year. This was up just 1.6 percent from the $449 million