FHLBank Indianapolis Announces Q3 2020 Earnings

On October 28, 2020, FHLBank Indianapolis issued its third-quarter 2020 earnings release.

Our Board of Directors declared dividends on Class B-1 and Class B-2 capital stock at annualized rates of 3.00% and 2.40%, respectively. The dividends will be paid in cash on October 29, 2020.

As a result of implementing a revised capital plan effective September 26, 2021, the Board also declared
dividends for the remaining five-day period of the quarter on Class B-2 activity-based stock at an annualized
rate of 3.00% and Class B-1 non-activity-based stock at an annualized rate of 3.00%. Given the short period
of time that the revised capital plan was in effect during the quarter, the Board declared the same rate on the
Class B-1 stock as on the Class B-2 stock.

 

Highlights include:

Net income for the quarter of $15 million, a decrease of $11 million compared to the same quarter in 2019, primarily due to lower net earnings on trading securities and accelerated amortization of purchase premium resulting from higher prepayments on mortgage loans, both resulting from the decline in market interest rates. 

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 $31.3 billion – a net decrease of $1.2 billion from December 31, 2019.

Mortgage loans held for portfolio totaled $9.2 billion – a net decrease of $1.6 billion or 15% 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 $1.5 billion.

Click here for the published third quarter 2020 earnings release.