The Federal Home Loan Bank of Des Moines has reported a 4.7 percent decline in earnings for the three months ended March 31.

The bank had net income of $20.3 million, compared with $21.3 million a year ago. The decline was attributed to smaller gains on derivatives and hedging activities, which decreased earnings by $2.9 million. Those losses were offset by a $700,000 increase in net interest income and a $1 million reduction in operating expenses.

FHLB Des Moines serves more than 1,200 member institutions in Iowa, Minnesota, Missouri, North Dakota and South Dakota, including commercial banks, credit unions and insurance companies. It is one of 12 regional banks in the Federal Home Loan Bank System.