8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

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FORM 8-K

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CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported):July 28, 2016

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FEDERAL HOME LOAN BANK OF INDIANAPOLIS

(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

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Federally Chartered Corporation	000-51404	35-6001443
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

8250 Woodfield Crossing Blvd.

Indianapolis IN 46240

(Address of Principal Executive Offices, including Zip Code)

(317) 465-0200

(Registrant's Telephone Number, Including Area Code)

 ______________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

o Written communications pursuant to Rule 425 under the Securities Act

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

Item 2.02. Results of Operations and Financial Condition

On July 28, 2016, the Federal Home Loan Bank of Indianapolis issued a news release announcing dividends declared and financial results for the quarter ended June 30, 2016. A copy of the news release is included as Exhibit 99.1 to this report. The information contained in Exhibit 99.1 is being furnished pursuant to Item 2.02 of this Current Report on Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits

News Release, dated July 28, 2016, issued by the Federal Home Loan Bank of Indianapolis.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: July 28, 2016

FEDERAL HOME LOAN BANK OF INDIANAPOLIS
	By:	/s/GREGORY L. TEARE
		Gregory L. Teare
		Senior Vice President - Chief Financial Officer
	By:	/s/K. LOWELL SHORT, JR.
		K. Lowell Short, Jr.
		Senior Vice President - Chief Accounting Officer

EXHIBIT INDEX

Exhibit Number	Description
99.1	News Release of Federal Home Loan Bank of Indianapolis, dated July 28, 2016

EX-99.1

FOR IMMEDIATE RELEASE	Contact: Carrie O'Connor
July 28, 2016	Senior Director of Communications
	317.465.0469
	coconnor@fhlbi.com

FHLBI Declares Dividends, Reports Second Quarter 2016 Financial Results

Indianapolis, IN…Today the Board of Directors of the Federal Home Loan Bank of Indianapolis ("FHLBI" or "bank") declared dividends on Class B-1 and Class B-2 capital stock at annualized rates of 4.25% and 3.40%, respectively. The dividend amounts will be paid in cash on July 29, 2016.

Financial Results Summary

FHLBI's net income for the second quarter of 2016 was $23 million, a decrease of $11 millioncompared to the same quarter in the prior year. This decrease was primarily due to net unrealized losses on derivatives and hedging activities. Net interest income after provision for credit losses for the second quarter of 2016 was $46 million, a decrease of $2 million compared to the same quarter in the prior year. This decrease resulted from higher interest expense on mandatorily redeemable capital stock ("MRCS"), which was due to a reclassification of all of the captive insurance company members' capital stock to MRCS as a result of the Final Membership Rule issued by the Federal Housing Finance Agency that, effective February 19, 2016, requires Federal Home Loan Banks to terminate the memberships of captive insurance companies by specified dates.

FHLBI's net income for the six months endedJune 30, 2016 was $49 million, a decrease of $16 millioncompared to the same period in the prior year. This decrease was primarily due to net unrealized losses on derivatives and hedging activities, as well as lower net proceeds from litigation settlements related to certain private-label mortgage backed securities. Net interest income after provision for credit losses for the six months endedJune 30, 2016 was $95 million, a decrease of $1 million compared to the same period in the prior year. This decrease resulted from higher interest expense on MRCS, which was due to the reclassification of our captive insurers' capital stock.

FHLBI derives its net income primarily through interest income earned on advances to and mortgage loans purchased from its Michigan and Indiana member financial institutions, as well as on long- and short-term investments. The bank's net interest income is primarily determined by the spread between the interest earned on assets and the interest cost on consolidated obligations.

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For the six months endedJune 30, 2016, the bank allocated $6 million to its Affordable Housing Program ("AHP"), which provides grant funding for housing to low- and moderate-income families in Michigan and Indiana. Full year 2016 AHP allocations will be available for FHLBI members in 2017 to help address their communities' affordable housing needs, including housing rehabilitation, construction and accessibility, and homebuyer down-payment assistance. The bank's annual AHP contribution is a fixed amount based on 10% of earnings before interest expense on MRCS.

Balance Sheet Highlights

Advances

Advances are secured loans that FHLBI provides to its member institutions. In general, usage of advance products fluctuates in accordance with members' funding needs related to their deposit levels, mortgage pipelines, investment opportunities, available collateral, balance sheet strategies, and the cost of alternative funding opportunities.

FHLBI's advances outstanding at June 30, 2016 totaled $26.5 billion, a net decrease of $444 million, or 2%, from December 31, 2015, due primarily to repayments by, and restrictions upon new or renewed advances to, captive insurance companies as a result of the Final Membership Rule. Advances to insurance companies, including captives, accounted for 54% of the bank's advance portfolio at June 30, 2016, while advances to depository institutions - comprising commercial banks, thrifts and credit unions - accounted for 46%.

Mortgage Loans Held for Portfolio

Mortgage loans held for portfolio at June 30, 2016 totaled $8.8 billion, a net increase of $625 million, or 8%, from December 31, 2015. FHLBI purchases mortgage loans from its members to support its housing mission, provide an additional source of liquidity to members, and diversify its investments. FHLBI's mortgage loan purchases totaled $1.3 billion for the six months endedJune 30, 2016. In general, the volume of mortgage loans purchased is affected by several factors, including interest rates, competition, the general level of housing activity in the United States, the level of refinancing activity and consumer product preferences.

Consolidated Obligations

The primary source of funds for FHLBI, and for the other Federal Home Loan Banks ("FHLBanks"), is the sale of FHLBanks' consolidated obligations in the capital markets, issued through the FHLBanks' Office of Finance.

FHLBI's consolidated obligations outstanding at June 30, 2016 totaled $48.4 billion, a net increase of $1.3 billion from December 31, 2015. The primary liability for these consolidated obligations rests with FHLBI; additionally, it is jointly and severally liable with each of the other FHLBanks for the payment of the principal and interest on all of the FHLBanks' outstanding consolidated obligations.

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Capital

FHLBI is a cooperative whose member financial institutions and former members (or their legal successors) own all of its capital stock as a condition of membership or to support their outstanding borrowings. For the six months endedJune 30, 2016, total capital decreased by $117 million primarily due to the reclassification of all of the capital stock held by captive insurance company members to MRCS.

Total regulatory capital consists of capital stock, MRCS and retained earnings. The bank's regulatory capital-to-assets ratio at June 30, 2016 was 4.7%, which exceeds all applicable regulatory capital requirements.

All amounts referenced above and in the following table are unaudited. More detailed information about FHLBI's financial results for the three and six months ended June 30, 2016 will be included in the bank's Quarterly Report on Form 10-Q, which we intend to file by mid-August.

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	2016			2015		2016			2015
Net interest income after provision for credit losses	$	46		$	48	$	95		$	96
Other income (loss)	(2		)	8		(3		)	12
Other expenses	18			18		37			36
Affordable Housing Program assessments	3			4		6			7
Net income	$	23		$	34	$	49		$	65

Condensed Statements of Condition	June 30, 2016		December 31, 2015
Advances	$	26,465	$	26,909
Mortgage loans held for portfolio, net	8,772		8,146
Cash and short-term investments	4,006		4,932
Other assets (1) (2)	12,758		10,621
Total assets (2)	$	52,001	$	50,608
Consolidated obligations (2)	$	48,387	$	47,113
Mandatorily redeemable capital stock	178		14
Other liabilities	1,167		1,095
Total liabilities (2)	49,732		48,222
Capital stock, Class B putable	1,400		1,528
Retained earnings (3)	854		835
Accumulated other comprehensive income	15		23
Total capital	2,269		2,386
Total liabilities and capital (2)	$	52,001	$	50,608
Total regulatory capital(4)	$	2,432	$	2,377

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⁽¹⁾  Includes held-to-maturity securities and available-for-sale securities.

⁽²⁾  December 31, 2015 balances reclassified for change in accounting principle related to concessions on consolidated obligations.

⁽³⁾  Includes restricted retained earnings at June 30, 2016 and December 31, 2015 of $140 million and $130 million, respectively.

⁽⁴⁾ Consists of total capital less accumulated other comprehensive income plus MRCS.

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 FHLBI's 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. FHLBI undertakes 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 a regional bank included in 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, with particular attention paid to providing solutions that support the housing and small business needs of members' customers. FHLBanks are privately capitalized and funded, and receive no Congressional appropriations. FHLBI is owned by its Indiana and Michigan financial institution members, which include commercial banks, credit unions, insurance companies, savings banks and CDFIs. For more information about FHLBI, visit www.fhlbi.com.

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