WASHINGTON — After several consecutive quarters of disappointing results, net income at the 12 Federal Home Loan Banks surged 56.4%, to $1.1 billion, according to figures released by the Office of Finance Wednesday evening.The growth comes thanks to accounting rules approved earlier this year that require only small, credit-related portions of other-than-temporary impairment charges to be recorded against earnings. Total OTTI charges on the system's private-label mortgage-backed securities came to $2.6 billion during the quarter but only $437 million of that was taken against net income.The new standard placed some perennially struggling Home Loan banks back in the black. The Federal Home Loan Bank of Chicago, which lost $39 million during the first quarter and reported losses during three of the four quarters in 2008, pulled in $103 million during the second quarter.The Home Loan banks in San Francisco, Atlanta, New York, Topeka and Chicago were the top five earners during the quarter.Still, the Home Loan banks in Seattle and Boston continued to lose money. The $35 million quarterly loss in Seattle marked that bank's fourth consecutive deficit. Losses at the Boston Home Loan bank surpassed $83.4 million during the first quarter but shrank to $5 million by June 30.The overall earnings gain comes despite a 20.4% drop in advances, which is the system's main business. With the liberalization of the Federal Reserve Board's discount window and a number of liquidity programs sponsored by the central bank, members of the Home Loan banks have more sources than ever from which to tap funding.The system's combined balance sheet lost 14.9% from yearend, with total assets coming in at $1.1 trillion.Retained earnings at the 12 banks totaled grew roughly 20% during the quarter, to $6 billion.WASHINGTON — After several consecutive quarters of disappointing results, net income at the 12 Federal Home Loan Banks surged 56.4%, to $1.1 billion, according to figures released by the Office of Finance Wednesday evening.

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