FHLBank Indianapolis Announces Q2 2020 Earnings

On July 29, 2020 FHLBank Indianapolis issued its second quarter 2020 earnings release.

Our Board of Directors declared dividends on Class B-1 and Class B-2 capital stock at annualized rates of 3.50% and 2.80%, respectively. The dividends will be paid in cash on July 30, 2020.

Highlights include:

Net income for the quarter of $13 million, down $22 million compared to the same quarter in 2019, primarily due to accelerated amortization of purchase premium resulting from higher prepayments on mortgage loans, net losses on trading securities, and higher net losses on qualifying fair-value hedging relationships.

FHLBank Indianapolis allocated $2 million to its Affordable Housing Program for the quarter. Full year 2020 AHP allocations will be available to FHLBank Indianapolis members in 2021.

Outstanding advances totaled $34.8 billion – a net increase of $2.4 billion from December 31, 2019.

Mortgage loans held for portfolio totaled $10.1 billion – a net decrease of $732 million or 7% from December 31, 2019 as principal repayments by borrowers outpaced the Bank’s purchases during this period.

The Bank’s mortgage loan purchases through the Advantage Mortgage Purchase Program totaled $1.0 billion.

Click here for the published second quarter 2020 earnings release.