FHLBank Indianapolis announces second-quarter 2026 dividends, reports earnings

last updated on Tuesday, July 28, 2026 in Federal Home Loan Bank Indianapolis

On July 28, 2026, the Board of Directors of the Federal Home Loan Bank of Indianapolis declared its second-quarter 2026 dividends on Class B-2 activity-based capital stock and Class B-1 non-activity-based stock at annualized rates of 9.50% and 4.00%, respectively.

The dividends will be paid in cash on July 29, 2026.

Financial results

Net income for the three months ended June 30, 2026, was $78 million, a net decrease of $12 million compared to the corresponding period in the prior year.

• Net interest income decreased $4 million, primarily due to lower market interest rates, partially offset by the favorable impact of higher average balances of interest-earning assets.
• Other income decreased $4 million, primarily due to fair value changes on our economic derivatives and trading securities.
• Other expenses increased $5 million, primarily due to an increase in voluntary contributions to housing and community investments programs, reflecting changes in the timing and availability of these programs.

Net income for the six months ended June 30, 2026, was $159 million, a net decrease of $5 million compared to the corresponding period in the prior year.

• Net interest income decreased $9 million, primarily due to lower market interest rates, partially offset by the favorable impact of higher average balances of interest-earning assets.
• Other income decreased $3 million, primarily due to a decrease in net realized gains on sales of certain available-for-sale securities.
• Other expenses decreased $6 million, primarily due to a decrease in voluntary contributions to housing and community investments programs, reflecting changes in the timing and availability of these programs.

At June 30, 2026, total assets were $90.4 billion, a net increase of $4.2 billion, or 5%, from Dec, 31, 2025, primarily driven by increases in advances and short-term investments of $2.1 billion and $1.1 billion, respectively.

The Bank's regulatory capital-to-assets ratio, at June 30, 2026, was 5.33%, which exceeds all applicable regulatory capital requirements.

Affordable Housing Program allocation

AHP assessment. For the six months ended June 30, 2026, required AHP assessments totaled $18 million, which will be available to the Bank's members in 2027 to help address their communities' affordable housing needs, including construction, rehabilitation, accessibility improvements, and homebuyer down-payment assistance.

Voluntary contributions to housing and community investment programs. As part of the Bank's commitment to further support its AHP and additional affordable housing and community investment programs, the Bank voluntarily contributed additional funding in the six months ended June 30, 2026, totaling $10 million, all of which has been recognized and reported in other expenses.

Consistent with 2025, the Bank has committed to allocating voluntary funding in the amount of 7.5% of prior year's net earnings to various affordable housing and community investment programs in 2026.

Click here to read the Bank's full news release.

Questions? Contact Corporate Communications at [email protected].