INDIANAPOLIS, Oct. 14, 2005 (PRIMEZONE) -- The board of directors of the Federal Home Loan Bank of Indianapolis (FHLBI) declared a dividend on B-1 stock at a rate of 4.25%. Additionally, B-2 stock will be paid at 3.40%. Since the FHLBI is not yet registered with the Securities and Exchange Commission under the 1934 Act, the Federal Housing Finance Board's Office of Supervision has approved this dividend.
The dividend on both B-1 and B-2 stock will be paid in cash out of the FHLBI's current earnings. The board of directors' decision to pay this dividend in cash was based on overall capital planning considerations.
The Federal Home Loan Bank of Indianapolis is one of twelve 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 insured financial institutions, such as commercial banks, savings institutions, insurance companies, and credit unions. FHLBanks are privately capitalized and funded, and receive no Congressional appropriations.
The Indianapolis Bank promotes Building Partnerships, Serving Communities by serving as a wholesale source of funds for chartered financial institutions throughout Indiana and Michigan. For more information about the FHLBI, see the information statement at www.fhlbi.com.