FHLBank Indianapolis dividends for the third quarter of 2026 will be paid in cash on October 28, after the member-owned bank reported that quarterly net income fell to $78 million from $87 million a year earlier.

Key Takeaways

  • The board declared annualized dividend rates of 9.25% for Class B-2 stock and 4.00% for Class B-1 stock.
  • Lower average market interest rates and declines in investment fair values contributed to the quarterly earnings decrease.
  • The bank recorded $27 million in required affordable housing assessments for the first nine months of 2026.

FHLBank Indianapolis dividends by share class

The board declared the dividends on October 27, 2026. The 9.25% annualized rate applies to Class B-2 activity-based capital stock, while the 4.00% rate applies to Class B-1 non-activity-based stock.

FHLBank Indianapolis is owned by financial institution members in Indiana and Michigan, including banks, credit unions, insurers and community development financial institutions.

Lower interest and other income weigh on earnings

Net income for the three months ended September 30 fell by $9 million from the same period in 2025. The bank said net interest income decreased by $3 million, primarily because of lower average market interest rates, partly offset by higher average balances of interest-earning assets.

Other income fell by $6 million, primarily because of declines in investment fair values. Other expenses rose by $1 million, primarily reflecting an increase in voluntary housing and community investment contributions.

For the nine months ended September 30, net income was $237 million, down from $251 million a year earlier. Total assets stood at $86.1 billion at September 30, down less than 1% from the end of 2025. The bank said its 5.67% regulatory capital-to-assets ratio exceeded all applicable requirements.

Affordable housing funding

The $27 million in required Affordable Housing Program assessments for the first nine months of 2026 will be available to members in 2027 for needs including construction, rehabilitation and homebuyer down-payment assistance.

The bank also contributed $24 million voluntarily to housing and community investment programs during the nine-month period. It has committed to allocate voluntary funding equal to 7.5% of the prior year’s net earnings to such programs in 2026.

Next milestone

More detailed financial information is expected in the bank’s quarterly report on Form 10-Q.

Read More News

More FinanceVelix news

Disclaimer

This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.