On April 29, 2021, FHLBank Indianapolis issued its first-quarter 2021 earnings release.

Our Board of Directors declared its first quarter 2021 dividends on Class B-2 activity-based capital stock and Class B-1 non-activity-based stock at annualized rates of 3.25% and 1.50%, respectively. The higher dividend rate on activity-based stock reflects the Board's discretion under our amended capital plan effective September 26, 2020 to reward members that use FHLBank Indianapolis in support of their liquidity needs. The dividends were paid in cash on April 30, 2021.

Highlights include:

Click here for the published first quarter 2021 earnings release: FHLBank Indianapolis Declares Q1 2021 Dividends, Reports Earnings.

There are many benefits from being a member of the Federal Home Loan Bank of Indianapolis but one that needs to be further explored is the value of owning B2 (activity) stock. The FHLBank Indianapolis Board of Directors recently declared the Q1 2021 dividend for members of 1.50% for B1 (non-activity) shares and 3.25% for B2 (activity) shares. The spread of 1.75% rewards members who use our Advance, MPP, and Line of Credit (LOC) products with a higher dividend since use of these products contribute to the financial success of the cooperative. This dividend difference is a factor to consider when evaluating funding costs, selling mortgages, or securing an LOC.

If you have questions about how you can maximize your FHLBank Indianapolis dividend, or questions about the products and services discussed in the article above, please reach out directly to your account manager or the Credit Desk.

Congratulations to Jim Eibel, Senior Account Director at FHLBank Indianapolis, on his retirement. Jim had been with the bank for 30 years when he retired last week. In that time, he has been instrumental in helping our insurance company members best utilize their membership. Congratulations Jim!

Thank you to those members who joined us for one of our three Panel Discussions with MPP. Each of these events included a brief update about the program while our MPP panel of experts helped answer your most pressing questions.

A recording of one of these events is now available on our website for those who were unable to attend.

Today's banking environment is one of the most challenging in quite some time in what we hope is the 7th or 8th inning of a 9-inning pandemic.

The economy seems to be gaining strength, which is evident in various economic numbers. Employment is improving and economic growth is accelerating, with a favorable outlook for the remainder of the year. Within the banking sector, early indications are that profitability is going to be strong for many organizations that have been able to reduce loss reserves due to better than anticipated loss experience, expense control, mortgage activity, and loan growth.

FHLBank Indianapolis is making enhancements to our advance programs to assist members that need same-day funding after 2:00 p.m. Eastern time. Pursuant to the FHLBank Indianapolis Credit Policy, requests for advances should be received by 10:30 a.m. Eastern time in order to be eligible for funding on the same business day. However, FHLBank Indianapolis continually strives to accommodate member advance requests beyond the specified 10:30 a.m. Eastern time deadline.

In order to provide members with alternatives to meet requests for late day funding needs, FHLBank Indianapolis will offer the Variable Rate Advance product to all members requesting same-day funding after 2:00 p.m. Eastern time. The Variable Rate Advance is our most flexible short-term liquidity product, with terms ranging from 1 to 180 days, repricing and prepayable daily. Same-day advances requests received after 3:00 p.m. Eastern time are subject to a best-efforts basis.

FHLBank Indianapolis will continue to accommodate members requests prior to 2:00 p.m. Eastern time with our full menu of available credit products. If you would like to discuss the enhancements to our late day advances product availability in more detail, please contact the Advances Desk at 800-442-2568 or your Account Manager.

Beginning with MPP Bulletin 03-20 issued on March 24, 2020, FHLBank Indianapolis has allowed underwriting flexibilities in an effort to ease the impact of the pandemic as it relates to underwriting and loan delivery.

Effective with loan applications dated May 1, 2021 or later, FHLBank Indianapolis reverted to the underwriting and delivery guidance as provided by the MPP Guide. This includes employment verifications, income verifications, and appraisal requirements.

FHLBank Indianapolis continues to monitor the COVID-19 pandemic and its potential impact on borrowers as well as our members. These MPP Bulletins are intended to provide additional information to keep you informed of related changes.

We have elected to extend the appraisal flexibilities for loans with applications dated through May 31, 2021. All loan applications dated on or after June 1, 2021 will be subject to the standard appraisal requirements reflected in the MPP Guide.

The temporary flexibilities for verifications of employment and power of attorney ended on April 30, 2021. All loan applications dated on or after May 1, 2021 will be subject to the standard verification of employment and power of attorney requirements.

You can help small businesses in your community grow by helping them apply for an Elevate small business grant. The Elevate small business grant assists the growth and development of small businesses in Indiana and Michigan. Small businesses can use the grant money (up to $20,000) for capital expenditures, workforce training, working capital, or a variety of other needs as outlined in the Elevate Program Guide.

Applications must be submitted by May 18, 2021. You can read more about the Elevate program, training tools, marketing materials, and the applications at www.fhlbi.com/elevate.

Members that are open to participating in the 2021 Elevate round and willing to be part of a public list for community partners or small businesses to access should click the link below to submit contact information to be listed as a participating member.

FHLBank Indianapolis has announced funding is now available for the Homeownership Initiatives programs, including the Homeownership Opportunities Program (HOP), the Neighborhood Impact Program (NIP), and the Accessibility Modifications Program (AMP). FHLBank Indianapolis will began accepting disbursement requests through our new online portal, FHLBI.GIVES, on Monday, May 3, 2021.

Funding for these programs is expected to be in high demand, so please act in a timely fashion. For more information about the Homeownership Initiatives, please click here: Homeownership Initiatives.

Every two years, the Federal Housing Finance Agency (FHFA) is required to consider each Federal Home Loan Banks member's performance under the Community Reinvestment Act of 1977. The requirement applies to ALL FHLBank Indianapolis members, even if your institution is not subject to CRA. The Community Support Statement is used to determine a member's access to long-term FHLBI advances, the Affordable Housing Program (AHP), and targeted Community Investment Cash Advance (CICA) programs. It is important that your institution submits the Community Support Statement to retain access to all the aforementioned products/services.

All members need to submit the Community Support Statement (CSS) via the FHFA portal to satisfy this requirement. The FHFA began accepting Community Support Statements on April 1, 2021. If you need to check to see if your institution has submitted their CSS, need help accessing the FHFA portal, or have general questions about CSS, please contact Anastasia Weinreich, CID Compliance Analyst.

Are you following our LinkedIn page? Find FHLBank Indianapolis on LinkedIn to stay up to date on what we and our members are doing to serve your community!