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FHLBank Indianapolis

Capital Plan

More choices and greater flexibility for members. Your activity delivers greater rewards.

The FHLBank Indianapolis Capital Plan establishes minimum membership and activity-based capital stock requirements for members.

Members are required to maintain a minimum capital stock investment equal to a certain percentage of its total assets subject to certain minimum and maximum requirements. The membership stock requirement percentage may be adjusted but must stay within the range identified below. Membership stock requirements are typically reviewed annually.

Additionally, members must maintain capital stock holdings to satisfy the activity-stock requirement resulting from FHLBank Indianapolis product utilization. The activity-based stock requirements are outlined below in the Key Features of the Capital Plan. Activity-stock requirements are re-calculated at time of product usage, and a member would have the ability to purchase stock at that time to satisfy the requirement.

Capital Plan Documents, Forms & Webinar

Key Features of the Capital Plan

Membership stock requirements are calculated based on total assets instead of mortgage-related assets.
The Plan provides the flexibility for two options for Activity-based stock.
Advantage MPP users have the flexibility to acquire activity stock related to their mortgage sales.
The Plan gives the Board the flexibility to establish different dividend rates for each stock class.

More choices, and greater flexibility for members. Your activity delivers greater rewards.

Offerings

A Stock

Activity Stock

B-1 Stock

Non-activity stock (including membership and excess stock)

B-2 Stock

Activity Stock

Redemption

6-month

5-year

5-year

Key Features & Benefits

When available, this new stock class will give members additional stock redemption flexibility.

Membership requirement based on total assets. This simplified formula eliminates time-consuming paperwork on mortgage asset calculation.

Converts automatically to B-2 Activity stock to support product usage.
All B stock not required for activity.

B-2 stock reflects the stock members are required to own to support an FHLBank Advance, line of credit, letter of credit, or MPP sales (for those MPP sellers that opt-in).
Converts automatically to B-1 stock when not required.
Under the new plan, B-2 stock has the potential to pay a higher dividend rate than B-1 or A stock.

Stock Requirements under the FHLBank Indianapolis Capital Plan

The Table below details the membership and activity stock requirements of our Capital Plan.

Membership Stock Requirements (MSR) Effective September 26, 2020
	Range (%)	Requirement (%)	Min/Max Requirements
Total Assets	0.01 - 0.50%	0.10%	$7,500 / $5,000,000

Activity-Based Stock Requirements (ABSR) Effective September 26, 2020
	Range (%)	Requirement (%)	Min/Max Requirements
Advances	1.0 - 6.0%	4.50%	n/a
Lines of Credit	1.0 - 6.0%	4.50%	n/a
Letters of Credit	0.10 - 6.0%	0.10%	n/a
Derivative Contracts	1.0 - 6.0%	4.50%	n/a
MPP (Mandatory)	0.0 - 6.0%	0.00%	n/a
MPP (Opt-in)	0.0 - 6.0%	4.50%	n/a
CIP Advances	1.0 - 6.0%	4.50%	n/a
AHP Grants & Setasides	n/a	n/a	n/a
Membership Stock Requirement: For current member institutions, the new membership stock requirement will be effective with the annual membership verification on or about April 1, 2021. Any institution that joins the FHLBank Indianapolis on or after September 26, 2020 will be subject to the new membership requirement. Mandatory Stock Repurchase: The Capital Plan requires the repurchase of excess stock if FHLBank Indianapolis' regulatory capital ratio exceeds a specified ratio at month end. The Board of Directors has established an initial regulatory capital target of 6.00%

Capital Plan Informational Webinar

What it means for Members?

The Value of MPP: New Capital Stock Opt-in

How does Dividend Bifurcation Work?