The Federal Home Loans Banks earned a net income of $660 million, which increased from $552 million for Q2, reported FHLBanks Office of Finance.  

This was on par with the $600 to $725 million, contributing to the most successful quarter of earnings since 2010. 

Jim Vogel, an analyst with FTN Financial called it "one of their more successful earnings quarters of the last two years," in an email to clients.

Positive net income trends are seen throughout various Federal Home Land Banks.

For example, Federal Home Lank Bank of Dallas reported a net income of $17.8 million for third quarter earnings. The Bank’s retained earnings also increased to $555.8 million this quarter, from $539.1 million in June. 

The Federal Home Bank of New York also saw a net income of $88.4 million, which is an increase of $52.7 million, from $35.7 a year prior. Return on average equity also increased to 6.42%, compared to ROE of 2.72% from a year prior.

Continue with the improvement is the Federal Home Loan Bank of Chicago, which saw a net income year-to-date of $275 million, a 32% increase from $208 million a year prior. These results were in response to reduced Other-Than-Temporary Impairment charges, an increase in prepayment fee income and a stronger based of net interest income.

The total GAAP capital for Federal Home Loan Banks was $41.6 billion, an increase of 4.4% from $39.8 billion in December 2011.

cmlynski@housingwire.com