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Federal Home Loan Bank of Indianapolis Declares Dividend and
Reports Second Quarter 2012 Financial Results
GlobeNewswire
2012-07-31
INDIANAPOLIS, July 30, 2012 (GLOBE NEWSWIRE) -- On July 27, 2012, 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 3.00% and 2.40%, respectively. These dividends
will be paid in cash on July 31, 2012.
"A strong financial performance in the second quarter has again allowed
us to pay our members a solid return on their investment," stated
Milton Miller, President - CEO. "Further, it is encouraging to see
positive trends emerging for member usage of FHLBI products."
Net Income for the second quarter of 2012 was $33.2 million. The
increase of $8.8 million compared to the same period in 2011 was
primarily due to higher net interest income, lower other-than-temporary
impairment ("OTTI") credit losses on our private-label mortgage-backed
securities and a decrease in total assessments as a result of
satisfying our obligation to the Resolution Funding Corp. as of June
30, 2011. Net Interest Income After Provision for Credit Losses
increased by $2.8 million or 5% in the second quarter of 2012, compared
to the same period in 2011, primarily due to wider spreads on our
interest-earning assets and an increase in prepayment fees on Advances,
partially offset by lower levels of certain interest-earning assets.
Net Income for the first six months of 2012 was $74.7 million. The
increase of $30.4 million compared to the same period in 2011 was
primarily due to lower OTTI credit losses on our private-label
mortgage-backed securities, higher net interest income and a decrease
in total assessments as a result of satisfying our obligation to the
Resolution Funding Corp. as of June 30, 2011. Net Interest Income After
Provision for Credit Losses increased by $5.9 million or 5% in the
first six months of 2012, compared to the same period in 2011,
primarily due to wider spreads on our interest-earning assets,
partially offset by lower levels of certain interest-earning assets.
Total Assets at June 30, 2012 were $40.2 billion, a net decrease of
$210.3 million compared to December 31, 2011. Advances outstanding
totaled $18.8 billion. The net increase of 1% compared to December 31,
2011 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 $5.8 billion. The net
decrease of 3% compared to December 31, 2011 was attributable to
repayments exceeding the purchases of mortgage loans under our Mortgage
Purchase Program. Investments totaled $15.2 billion at June 30, 2012
and December 31, 2011.
Consolidated Obligations totaled $36.3 billion at June 30, 2012. The
net decrease of $617.3 million or 2% compared to December 31, 2011 was
attributable to lower funding needs.
Total Capital was $2.1 billion at June 30, 2012. The increase of $129.9
million for the first six months of 2012 consisted of a net increase in
Capital Stock of $44.9 million, a net increase in Retained Earnings of
$51.2 million, and a net decrease in Accumulated Other Comprehensive
Loss of $33.8 million.
At June 30, 2012, Total Regulatory Capital was $2.6 billion and our
regulatory capital-to-assets ratio was 6.5%, which exceeds all
applicable regulatory capital requirements.
All amounts referenced above and in the following table are unaudited.
More detailed information about our financial results for the quarter
and six months ended June 30, 2012 will be included in our Quarterly
Report on Form 10-Q, which we intend to file in mid-August.
Federal Home Loan Bank of Indianapolis
Financial Highlights (unaudited)
($ amounts in millions, as rounded)
--------------------------------------------------------------------
Three Months Six Months
Ended Ended
June 30, June 30,
------------- --------------
Condensed Statements of Income 2012 2011 2012 2011
------------------------------------- ------ ----- ------ ------
Net Interest Income After Provision
for Credit Losses $ 58 $ 55 $ 120 $ 114
Net OTTI Credit Losses -- (3) (3) (21)
Other Income (Loss), excluding OTTI
Credit Losses (5) (5) (3) (5)
Other Expenses 15 14 30 27
Total Assessments 4 9 9 17
------ ----- ------ ------
Net Income $ 34 $ 24 $ 75 $ 44
====== ===== ====== ======
June
30, December
Condensed Statements of Condition 2012 31, 2011
---------------------------------- ------- --------
Advances $18,814 $18,568
Mortgage Loans Held for Portfolio,
net 5,780 5,955
Investments (1) 15,239 15,203
Other Assets 332 649
------- --------
Total Assets $40,165 $40,375
======= ========
Consolidated Obligations, net $36,277 $36,894
Mandatorily Redeemable Capital
Stock 451 454
Other Liabilities 1,360 1,080
------- --------
Total Liabilities 38,088 38,428
------- --------
Capital Stock, Class B Putable 1,608 1,563
Retained Earnings (2) 549 498
Accumulated Other Comprehensive
Income (Loss) (80) (114)
------- --------
Total Capital 2,077 1,947
------- --------
Total Liabilities and Capital $40,165 $40,375
======= ========
Total Regulatory Capital (3) $2,608 $2,515
======= ========
(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 $28 million and $13 million of
Restricted Retained Earnings at June 30, 2012 and
December 31, 2011, respectively.
(3) Consists of Total Capital plus Mandatorily
Redeemable Capital Stock less Accumulated Other
Comprehensive Income (Loss).
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.
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.
CONTACT: Jeffrey A. Sanders, Vice President
Corp. Communications & Planning Director
317.465.0529
jsanders@fhlbi.com
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