Quarterly FHLBank Indianapolis Member Letter

August 4, 2021

Volume 3, Issue 3

Powering Through Unpredictability with Listening and Innovation

It has been nearly 18 months of unpredictability for each of us. My team here at FHLBank Indianapolis knows how hard you've worked to meet your customer and member needs. Your responsiveness and resilience in serving your mission in such turbulent times demonstrates your mettle and commitment. We've worked hard as well to ensure we remain relevant to our Indiana and Michigan members, no matter the environment.

Results Through Listening. Throughout the pandemic, we've been working diligently to support you and understand your opportunities and pain points. Since January 2021 FHLBank Indianapolis has held over 15 virtual events with members and community stakeholders, in addition to the extensive outreach of our Account Managers and Community Outreach Partners.

Innovating Where it Counts. The following summaries reflect some of those results: the many enhancements we've made in the last three months to continue to support you and the communities you serve. Most notably, we just paid out our second quarter 2021 dividend!

Thank You for Your Business. We're relentlessly committed to serving you and supporting your liquidity needs, and we appreciate that your active partnership with FHLBank Indianapolis.

As always, I'm here to connect with you, as is the entire team at FHLBank Indianapolis. Drop me a line with feedback directly at ckonich@fhlbi.com, or call me any time at 317.465.0200.

Sincerely,

Cindy L. Konich

President and CEO

FHLBank Indianapolis

2021 Second Quarter Financials and Dividend Payout

On July 29, FHLBank Indianapolis issued its second quarter 2021 earnings release.

Our Board of Directors declared dividends on Class B-2 activity-based capital stock and Class B-1 non-activity-based stock at annualized rates of 3.25% and 1.00%, respectively. The dividends were paid in cash on July 30, 2021.

Highlights:

Net income for the quarter of $17.1 million, up $3.9 million compared to the same quarter in 2020.
Outstanding advances totaled $27.6 billion – down $3.7 billion, or 12%, from December 31, 2020.
Mortgage loans held for portfolio totaled $7.7 billion – down $779 million, or 9%, from December 31, 2020. Mortgage loan purchases through the Advantage Mortgage Purchase Program totaled $1.1 billion.

Click here for the published second quarter 2021 earnings release.

Advantage MPP Now Accepting eNotes

Effective August 2, FHLBank Indianapolis members can sell mortgages secured by eNotes (electronic promissory notes) through our Advantage Mortgage Purchase Program. This change will give our members the flexibility to sell mortgages that are secured with an emerging technology that is gaining traction within the mortgage industry.

FHLBank Indianapolis is proud to lead the way with eNotes technology, delivering new solutions to ensure we continue to meet the liquidity needs of our members. We’re committed to delivering the best products and services possible for our members.

FHLBank Indianapolis @ Detroit

With the lease signed last month, we're pleased to announce that we expect to open our Detroit Hub in early October. A physical location in the Motor City will help us fully engage with our member financial institutions and community partners throughout our district.

FHLBank Indianapolis' Detroit Hub s located in a 12-story historic Downtown Detroit gem, well-situated to serve our Michigan members and the Detroit community. We're steps away from Little Caesars Arena, Comerica Park, and Ford Field, and close to food and entertainment.

The space includes a conference room to host meetings, workshops, and training sessions for up to 30 people. FHLBank Indianapolis will also offer meeting space for member and community partner use.

The Hub will house two FHLBank Indianapolis employees - Anna Shires, our Detroit Community Investment Outreach Partner, and Jaime Carver, who joins the bank this month as an Account Manager (see story below).

Welcome Account Executive Jaime Carver

We're pleased to welcome Jaime Carver to FHLBank Indianapolis as an Account Manager dedicated to the Southeast Michigan region of our district.

Jaime joins us from Flagstar Bank, where she most recently served as Director of Liquidity and Funding. Prior to joining Flagstar, Jaime worked at Citizens Bank and Chrysler in a variety of financial and operations roles.

Join us 10:30 a.m. to noon on August 31 for our 2021 Virtual Shareholders Symposium.

This 90-minute session includes a business update and an in-depth presentation on housing trends with Ali Wolf, the chief economist for Zonda, a data and research firm focused on homebuilding.

Visit www.fhlbi.com to learn more about our products and services.