Indianapolis, Indiana – The Federal Home Loan Bank of Indianapolis (FHLBank Indianapolis) announced on October 28, 2025, that its Board of Directors has declared dividends for the third quarter of 2025 on both its Class B-2 activity-based capital stock and Class B-1 non-activity-based stock. The dividends were set at annualized rates of 9.50% and 4.50%, respectively, and will be paid in cash on October 29, 2025.
The board emphasized that the higher rate for the Class B-2 activity-based stock reflects its intent to reward member institutions that actively engage with the bank to meet their liquidity needs. “The higher dividend rate on activity-based stock reflects the Board’s discretion under the Bank’s capital plan to reward members that use FHLBank Indianapolis in support of their liquidity needs,” the statement noted.
For the third quarter of 2025, net income totaled $87 million, representing a $4 million decrease compared to the same period last year. According to the bank, this decline was largely due to net unrealized losses on qualifying fair-value hedging relationships and an increase in voluntary contributions to affordable housing and community investment programs. These impacts were partially offset by stronger revenue from advance prepayment fees, adjusted for swap termination fees.
Despite the slight decline in quarterly income, FHLBank Indianapolis reaffirmed its ongoing commitment to supporting local financial institutions and community investment efforts across Indiana and Michigan. The bank’s ability to maintain strong dividend payouts demonstrates its solid financial position and focus on delivering value to its member banks.
The declaration of dividends continues FHLBank Indianapolis’ consistent record of providing stable returns to its members while advancing broader community initiatives. By balancing financial performance with contributions to affordable housing and economic development, the bank underscores its dual role as both a reliable financial partner and a catalyst for local growth.
Read also: IU scientists join a global team of researchers to uncover new secrets of neutrinos and reveal clues about the origins of matter in the universeFHLBank Indianapolis is one of 11 regional banks in the Federal Home Loan Bank System, which was created to provide liquidity, funding, and financial services to member institutions. The bank’s latest financial results and dividend announcement further highlight its ongoing efforts to support economic resilience throughout the region.
To access the full news release, readers can visit the FHLBank Indianapolis website for detailed financial disclosures and additional information.
