INDIANAPOLIS, April 29, 2013 (GLOBE NEWSWIRE) -- On April 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 April 30, 2013.
Net Income for the first quarter of 2013 was $39.4 million. The decrease of $2.0 million compared to the same period in 2012 was primarily due to lower Net Interest Income. However, a net reduction in the allowance for credit losses of $4.75 million, due primarily to an upgrade in the credit rating of one of our mortgage insurance providers, resulted in an increase in Net Interest Income After Provision for Credit Losses of $1.9 million or 3% in the first quarter of 2013, compared to the same period in 2012.
Total Assets at March 31, 2013 were $39.7 billion, a net decrease of $1.5 billion or 4% compared to December 31, 2012. Advances outstanding totaled $18.9 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 $6.1 billion. The net increase of 2% compared to December 31, 2012 was attributable to 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 decrease in short-term investments.
Consolidated Obligations at March 31, 2013 totaled $35.4 billion. The net decrease of $978.1 million or 3% compared to December 31, 2012 was attributable to lower funding needs.
Total Capital at March 31, 2013 was $2.3 billion. The increase of $121.5 million or 5% during the first quarter consisted of a net increase in Capital Stock of $43.7 million, a net increase in Retained Earnings of $25.1 million, and a favorable change in Accumulated Other Comprehensive Income (Loss) of $52.6 million, primarily due to an increase in the fair value of OTTI Available-for-Sale securities.
At March 31, 2013, Total Regulatory Capital was $2.5 billion. The decrease of $221.4 million or 8% compared to December 31, 2012 was due to a repurchase of $250 million of excess stock, which was classified as Mandatorily Redeemable Capital Stock. Our regulatory capital-to-assets ratio at March 31, 2013 was 6.2%, which exceeds all applicable regulatory capital requirements.
All amounts referenced above and in the following table are unaudited. More detailed information about our financial results for the three months ended March 31, 2013 will be included in our Quarterly Report on Form 10-Q, which we intend to file in mid-May.
| Federal Home Loan Bank of Indianapolis | ||
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Financial Highlights (unaudited) ($ amounts in millions, as rounded) |
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| Three months ended March 31, | ||
| Condensed Statements of Income | 2013 | 2012 |
| Net Interest Income After Provision for Credit Losses | $ 64 | $ 62 |
| Other Income (Loss) | (5) | (1) |
| Other Expenses | 15 | 15 |
| Total Assessments | 5 | 5 |
| Net Income | $ 39 | $ 41 |
| Condensed Statements of Condition | March 31, 2013 | December 31, 2012 | ||
| Advances | $ 18,950 | $ 18,130 | ||
| Mortgage Loans Held for Portfolio, net | 6,093 | 6,001 | ||
| Investments (1) | 14,463 | 16,845 | ||
| Other Assets | 187 | 252 | ||
| Total Assets | $ 39,693 | $ 41,228 | ||
| Consolidated Obligations, net | $ 35,354 | $ 36,332 | ||
| Mandatorily Redeemable Capital Stock | 160 | 451 | ||
| Other Liabilities | 1,841 | 2,229 | ||
| Total Liabilities | 37,355 | 39,012 | ||
| Capital Stock, Class B Putable | 1,678 | 1,634 | ||
| Retained Earnings (2) | 617 | 592 | ||
| Accumulated Other Comprehensive Income (Loss) | 43 | (10) | ||
| Total Capital | 2,338 | 2,216 | ||
| Total Liabilities and Capital | $ 39,693 | $ 41,228 | ||
| Total Regulatory Capital (3) | $ 2,455 | $ 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 $50 million and $42 million at March 31, 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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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.