The Federal Home Loan Bank of Boston announced its preliminary, unaudited third quarter financial results for 2012, reporting net income of $50.8 million for the quarter compared with net income of $50 million for the third quarter of 2011.

These results led to a $5.7 million contribution to the bank’s Affordable Housing Program for the quarter. Additionally, the bank’s income in the third quarter was significantly increased by $12 million in net prepayment fees from advances and investments.

The bank’s board of directors also declared a dividend equal to an annual yield of 0.48 percent, the approximate daily average three-month LIBOR yield for the third quarter plus five basis points. The dividend, based on average stock outstanding for the third quarter of 2012, will be paid Nov. 2.

Net interest income after provision for credit losses for the quarter was $73.3 million, compared with $80.4 million for the third quarter of 2011. Average earning assets declined from $50.9 billion for the third quarter of 2011, to $47.1 billion for the third quarter of 2012, contributing to the  $7.1 million decrease in net interest income after provision for credit losses in the third quarter of 2012.

"We continue to provide members with the reliable liquidity and term funding they need to serve their communities in this uncertain, slow-growth economy," Edward A. Hjerpe III, president and CEO, said in a statement. "Retained earnings reached a record $538.2 million during the quarter, and market value of equity continues to improve. We are increasingly well positioned to support our membership into the future."