The Federal Home Loan Bank Office of Finance announced last week that preliminary combined net income for the FHLBanks dropped 24.7 percent to $552 million in the second quarter of 2012, down from the $733 million in the first quarter but more in line with the $515 million earned in the fourth quarter 2011. The FHLBanks net income for the six months ended June 30, 2012, was $1.285 billion, an increase of $676 million or 111.0 percent compared to the same period in 2011, said the Office of Finance.“The FHLBank system continues to fulfill its mission to make available favorably priced wholesale funding to members while supporting the FHLBank system’s commitment to affordable housing,” said the OF. “In addition, the FHLBanks continue to strengthen the FHLBank system’s capital base through increased retained earnings.”