The Federal Home Loan Bank of Des Moines on Tuesday reported preliminary net income of $133 million for 2010, a decrease from net income of $145.9 million in 2009. The bank’s net income was primarily affected by advance prepayment fees and losses on debt extinguishments and derivatives and hedging activities. Throughout 2010, the bank’s advance business declined primarily due to the high level of available liquidity and the low loan demand experienced by its member financial institutions. The bank recorded losses on derivatives and hedging activities of $52.6 million, compared with gains of $133.8 million in 2009.