The Federal Home Loan Bank of Indianapolis reported $70 million in net income for the second quarter, up 100% from the same period in 2012.
"Our financial strength helps to assure our members that they can continue to rely on us to meet their funding needs, provide a secondary market for their mortgage loan sales, and support their affordable housing and community development initiatives,” said Cindy Konich, the new president and chief executive of the Indianapolis FHLB.
The former president, Milton Miller, retired in early July.
The Indiana FHLB operates a
The FHLB attributed the jump in earnings to unrealized gains on hedging activities and a net realized gain on the sale of private-label mortgage-backed securities.
Overall, the 12 FHLBs reported net income of $730 million in the second quarter, up 32% from a year ago.
During the first six months of 2013, the 12 district banks reported an 8% increase in their advances or loans to member banks, thrifts and life insurance companies. As of June 30, the FHLBs held $458.5 billion in advances on their balance sheets. The advance business has been in decline for several years.
John von Seggern, the president and chief executive of the Council of Federal Home Loan Banks, welcomed the increase in advances.
“The increase in advance volumes in the second quarter is an indication that the U.S. economy and the housing markets continue to improve,” von Seggern said.
