FOR IMMEDIATE RELEASE
Contact: Carrie O'Connor
Senior Director of Communications
Federal Home Loan Bank of Indianapolis Declares Dividends, Reports Earnings
Indianapolis, IN…Today the Board of Directors of the Federal Home Loan Bank of Indianapolis ("FHLBank Indianapolis" or "Bank") declared its fourth quarter 2017 dividends on Class B-1 and Class B-2 capital stock at annualized rates of 4.25% and 3.40%, respectively. In addition, the Board declared supplemental dividends for the year on Class B-1 and Class B-2 capital stock at annualized rates of 2.50% and 2.00%, respectively. The dividends will be paid in cash on February 21, 2018.
"FHLBank Indianapolis is pleased to provide this supplemental dividend to its members," President and CEO Cindy Konich said. "It reflects particularly strong performance throughout 2017."
Net income for the fourth quarter of 2017 was $46 million, an increase of $6 million compared to the same quarter in the prior year, primarily due to higher net interest income, partially offset by lower net gains on derivatives and hedging activities. Net interest income after provision for credit losses was $70 million, an increase of $16 million compared to the same quarter in the prior year as a result of asset growth and higher spreads.
Net income for the year 2017 was $156 million, an increase of $43 million compared to the prior year, primarily due to higher net interest income, partially offset by net losses on derivatives and hedging activities. Net interest income after provision for credit losses was $262 million, an increase of $64 million compared to the prior year as a result of asset growth and higher spreads.
Affordable Housing Program Allocation2
As a direct result of our earnings for the year, FHLBank Indianapolis allocated $18 million to its Affordable Housing Program ("AHP"), which provides grant funding to support housing for low- and moderate-income families in Michigan and Indiana. This AHP allocation will be available to the Bank's members in 2018 to help address their communities' affordable housing needs, including construction, rehabilitation, accessibility improvements and homebuyer down-payment assistance.
FHLBank Indianapolis earns interest income on advances to and mortgage loans purchased from its Michigan and Indiana member financial institutions, as well as on long- and short-term investments. Net interest income is primarily determined by the spread between the interest earned on those assets and the interest cost of funding with consolidated obligations.
Each year FHLBanks allocate to the AHP 10% of earnings, which is defined as income before assessments, plus interest expense on Mandatorily Redeemable Capital Stock.
The following information was filed by Federal Home Loan Bank Of Indianapolis on Tuesday, February 20, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.