FHLBank Indianapolis Declares Q4 2020 Dividends, Reports Earnings

On February 23, 2021, FHLBank Indianapolis issued its fourth-quarter 2020 earnings release.

Our Board of Directors declared dividends on Class B-2 activity-based capital stock and Class B-1 non-activity-based stock at annualized rates of 3.00% and 1.75%, respectively. The dividends will be paid in cash on February 24, 2021.

"We’re pleased to pay out a higher Class B-2 activity-based dividend rate as a reward to members that use FHLBank Indianapolis in support of their liquidity needs," President and CEO Cindy Konich said. "Notably, now members approved to participate in our Mortgage Purchase Program can also elect to acquire activity-based stock reflective of their MPP transactions."

Highlights include:

  • Net income for the year ended December 31, 2020 was $88 million, a decrease of $54 million compared to the prior year, due to accelerated amortization of purchase premium resulting from higher prepayments on mortgage loans, and lower earnings on the portion of the Bank's assets funded by its capital, each driven by the decline in market interest rates.
  • FHLBank Indianapolis allocated $11 million to its Affordable Housing Program for the year end.
  • Outstanding advances totaled $31.3 billion – a net decrease of $1.1 billion from December 31, 2019.
  • Mortgage loans held for portfolio totaled $8.5 billion – a net decrease of $2.3 billion from December 31, 2019, as principal repayments by borrowers significantly outpaced the Bank’s purchases during the year.
  • The Bank’s mortgage loan purchases through the Advantage Mortgage Purchase Program totaled $2.1 billion.

Click here for the published fourth quarter 2020 earnings release: FHLBank Indianapolis Declares Q4 2020 Dividends, Reports Earnings.