FHLBank Indianapolis Announces Q2 2021 Earnings

On July 29, 2021 FHLBank Indianapolis issued its second quarter 2021 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 3.25% and 1.00%, respectively. The dividends will be paid in cash on July 30, 2021.

Highlights include:

Net income for the quarter of $17.1 million, an increase of $3.9 million compared to the same quarter in 2020, primarily due to lower net hedging losses on qualifying fair-value hedging relationships, lower accelerated amortization of purchase premium resulting from lower prepayments on mortgage loans, and an increase in net earnings on trading securities, partially offset by lower net interest income resulting from narrower interest spreads and the decline in average asset balances.

FHLBank Indianapolis allocated $5.5 million to its Affordable Housing Program for the for the six months ended June 30, 2021. Full year 2021 AHP allocations will be available to FHLBank Indianapolis members in 2022.

Outstanding advances totaled $27.6 billion – a net decrease of $3.7 billion, or 12%, from December 31, 2020.

Mortgage loans held for portfolio totaled $7.7 billion – a net decrease of $779 million, or 9%, from December 31, 2020, 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 $1.1 billion.

Click here for the published second quarter 2021 earnings release.