FOR IMMEDIATE RELEASE | Contact: Jeffrey A. Sanders | ||
July 29, 2013 | Corporate Communications & Planning Director | ||
317.465.0529 | |||
jsanders@fhlbi.com | |||
Federal Home Loan Bank of Indianapolis Declares Dividend
and Reports Second Quarter 2013 Financial Results
Indianapolis, IN…On July 29, 2013, the Board of Directors of the Federal Home Loan Bank of Indianapolis ("FHLBI") declared dividends on Class B-1 and Class B-2 capital stock at annualized rates of 3.50% and 2.80%, respectively. These dividends will be paid in cash on July 30, 2013.
"Our strong financial results have again allowed us to both add to retained earnings and declare this dividend," stated our new President-CEO, Cindy L. Konich, who was appointed by our board of directors effective July 22, 2013. "Our financial strength helps to assure our members that they can continue to rely on us to meet their funding needs, provide a secondary market for their mortgage loan sales and support their affordable housing and community development initiatives."
Net Income for the second quarter of 2013 was $69.7 million. The increase of $36.5 million compared to the same period in 2012 was primarily due to unrealized gains on hedging activities and a net realized gain on the sale of private-label mortgage-backed securities. Net Interest Income After Provision for Credit Losses increased by $2.9 million or 5% in the second quarter of 2013, compared to the same period in 2012, due to higher prepayment fees on Advances.
Net Income for the six months ended June 30, 2013 was $109.1 million. The increase of $34.5 million compared to the same period in 2012 was primarily due to a net realized gain on the sale of private-label mortgage-backed securities and unrealized gains on hedging activities. Net Interest Income After Provision for Credit Losses increased by $4.8 million or 4% in the six months ended June 30, 2013, compared to the same period in 2012, due to a net reduction in the allowance for credit losses and higher prepayment fees on Advances.
Total Assets at June 30, 2013 were $39.9 billion, a net decrease of $1.3 billion or 3% compared to December 31, 2012. Advances outstanding totaled $19.1 billion. The net increase of 5% compared to December 31, 2012 was attributable to higher Advances to our insurance company members, partially offset by lower Advances to our depository members. Mortgage Loans Held for Portfolio totaled $6.2 billion. The net increase of 3% compared to December 31, 2012 was attributable to purchases of mortgage loans under our MPP Advantage program and participation interests purchased from the Federal Home Loan Bank of Topeka under our Mortgage Partnership Finance® program. Investments totaled $14.5 billion. The net decrease of 14% compared to December 31, 2012 was primarily attributable to a managed reduction in short-term investments.
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Consolidated Obligations at June 30, 2013 totaled $35.5 billion. The net decrease of $800 million or 2% compared to December 31, 2012 was primarily attributable to lower funding needs.
Total Capital at June 30, 2013 was $2.3 billion. The increase of $132.4 million or 6% during the six months ended June 30, 2013 consisted of a net increase in Capital Stock of $38.0 million, a net increase in Retained Earnings of $80.4 million, and a favorable change in Accumulated Other Comprehensive Income (Loss) of $14.0 million, primarily due to an increase in the fair value of OTTI Available-for-Sale securities, partially offset by the reclassification of the net realized gains on the sale of securities.
At June 30, 2013, Total Regulatory Capital was $2.6 billion. The decrease of $76.6 million or 3% compared to December 31, 2012 was due to a repurchase of $250 million of excess stock, which was classified as Mandatorily Redeemable Capital Stock. Our regulatory capital-to-assets ratio at June 30, 2013 was 6.5%, which exceeds all applicable regulatory capital requirements.
All amounts referenced above and in the following table are unaudited. More detailed information about our financial results for the quarter and six months ended June 30, 2013 will be included in our Quarterly Report on Form 10-Q, which we intend to file in mid-August.
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Federal Home Loan Bank of Indianapolis | ||||||||||||||||
Financial Highlights (unaudited) ($ amounts in millions, as rounded) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
Condensed Statements of Income | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Net Interest Income After Provision for Credit Losses | $ | 61 | $ | 58 | $ | 125 | $ | 120 | ||||||||
Other Income (Loss) | 33 | (5 | ) | 28 | (6 | ) | ||||||||||
Other Expenses | 16 | 15 | 31 | 30 | ||||||||||||
Affordable Housing Program Assessments | 8 | 4 | 13 | 9 | ||||||||||||
Net Income | $ | 70 | $ | 34 | $ | 109 | $ | 75 | ||||||||
Condensed Statements of Condition | June 30, 2013 | December 31, 2012 | ||||||
Advances | $ | 19,101 | $ | 18,130 | ||||
Mortgage Loans Held for Portfolio, net | 6,167 | 6,001 | ||||||
Investments (1) | 14,467 | 16,845 | ||||||
Other Assets | 180 | 252 | ||||||
Total Assets | $ | 39,915 | $ | 41,228 | ||||
Consolidated Obligations, net | $ | 35,532 | $ | 36,332 | ||||
Mandatorily Redeemable Capital Stock | 256 | 451 | ||||||
Other Liabilities | 1,779 | 2,229 | ||||||
Total Liabilities | 37,567 | 39,012 | ||||||
Capital Stock, Class B Putable | 1,672 | 1,634 | ||||||
Retained Earnings (2) | 672 | 592 | ||||||
Accumulated Other Comprehensive Income (Loss) | 4 | (10 | ) | |||||
Total Capital | 2,348 | 2,216 | ||||||
Total Liabilities and Capital | $ | 39,915 | $ | 41,228 | ||||
Total Regulatory Capital (3) | $ | 2,600 | $ | 2,677 | ||||
(1) | Includes Held-to-Maturity Securities, Available-for-Sale Securities, Interest-Bearing Deposits, Securities Purchased Under Agreements to Resell, and Federal Funds Sold. |
(2) | Includes Restricted Retained Earnings of $64 million and $42 million at June 30, 2013 and December 31, 2012, respectively. |
(3) Consists of Total Capital plus Mandatorily Redeemable Capital Stock less Accumulated Other Comprehensive Income (Loss).
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Safe Harbor Statement
This document may contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 concerning plans, objectives, goals, strategies, future events or performance. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects" or the negative of these terms or comparable terminology. Any forward-looking statement contained in this document reflects our current beliefs and expectations. Actual results or performance may differ materially from what is expressed in any forward-looking statements.
Any forward-looking statement contained in this document speaks only as of the date on which it was made. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. Readers are referred to the documents filed by us with the U.S. Securities and Exchange Commission, specifically reports on Form 10-K and Form 10-Q, which include factors that could cause actual results to differ from forward-looking statements. These reports are available at www.sec.gov.
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Building Partnerships. Serving Communities.
The Federal Home Loan Bank of Indianapolis (FHLBI) is one of 12 regional banks that make up the Federal Home Loan Bank System. FHLBanks are government-sponsored enterprises created by Congress to ensure access to low-cost funding for their member financial institutions. FHLBanks are privately capitalized and funded, and receive no Congressional appropriations. The FHLBI is owned by its Indiana and Michigan financial institution members, which include commercial banks, credit unions, insurance companies, and savings banks. For more information about the FHLBI, visit www.fhlbi.com.
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