FHLBank Indianapolis deploys more than $26 million in low-cost loans to address housing and community development needs in Indiana and Michigan

INDIANAPOLIS, Nov. 05, 2025 (GLOBE NEWSWIRE) -- Today, the Federal Home Loan Bank of Indianapolis (“FHLBank Indianapolis” or “Bank”) announced that it has facilitated over $26 million in loans to community development financial institutions (CDFIs) across Indiana and Michigan. FHLBank Indianapolis made these transactions possible through a $5.9 million grant allocation to its CDFI Rate Buydown Advance program. The Bank celebrates the 15 financial institutions who participated in the program.

CDFIs are mission-driven lenders that provide credit and financial services to communities traditionally underserved by mainstream financial institutions, including rural, urban and Native American communities. Through the CDFI Rate Buydown Advance program, participants created a new lending pipeline to address the housing and community development needs of Indiana and Michigan.

FHLBank Indianapolis launched the CDFI Rate Buydown Advance program in 2024 with an initial $5 million grant allocation. CDFI Rate Buydown Advances allow CDFI members of FHLBank Indianapolis to borrow directly from the Bank while encouraging other member financial institutions to lend to non-depository CDFIs, regardless of Bank membership.

“The CDFI Rate Buydown Advance program facilitated new lending pipelines in underbanked communities,” said Jon Griffin, SVP, Chief Business Development Officer of FHLBank Indianapolis. “FHLBank Indianapolis is proud to offer the solutions our community financial institutions need to fulfill their missions and support community lending.

Participating FHLBank Indianapolis member financial institutions
Fifteen members took advantage of FHLBank Indianapolis’ grant dollars to facilitate low-cost funding to nine community development financial institutions.

Financial InstitutionFirst Independence BankFirst Internet Bank of IndianaFirst Merchants BankIndependent BankIndianapolis Neighborhood Housing Partnership, IncLake City BankLake Trust Credit UnionMerchants Bank of IndianaMetro Community DevelopmentMidwest American FCUOld National BankOpportunity Resource FundRange BankThe National Bank of IndianapolisWest Shore Bank

“The CDFI Rate Buydown Program opened doors for Northern Initiatives to build meaningful relationships with three new financial institutions,” said Elissa Sangalli, CEO, Northern Initiatives. “It’s a powerful example of how collaboration in the financial system can amplify impact where it matters most.”

Beneficiary CDFIs
Nine community development financial institutions in Indiana and Michigan benefitted from the program.

CDFI beneficiaryLocationCANI's Center for Community and Economic Development, Inc. dba Brightpoint Development FundIndianaDetroit Development FundMichiganEdge FundIndianaIndianapolis Neighborhood Housing Partnership (INHP)IndianaMetro Community DevelopmentMichiganMichigan Community CapitalMichiganNorthern Great Lake InitiativesMichiganOpportunity Resource FundMichiganProsperUs Detroit Micro LendingMichigan

“Lake City Bank is proud to partner with FHLBank Indianapolis through the CDFI Rate Buydown program,” said Jennifer Hurford, Senior Vice President, Treasurer of Lake City Bank. “The impact of this collaboration goes beyond financial support — it strengthens neighborhoods, fosters long-term stability and underscores our commitment to building strong communities. We’re honored to be part of a solution that brings real, lasting change to the communities we serve.”

For more information on FHLBank Indianapolis’ current affordable housing and community economic development programs and products, see the Community Programs page on fhlbi.com.

Media contact information:
For more information, contact John Bingham, SVP, MPP and Corporate Communications, at [email protected].

Federal Home Loan Bank of Indianapolis: Building Partnerships. Serving Communities
FHLBank Indianapolis is a regional bank in the Federal Home Loan Bank System. FHLBanks are government-sponsored enterprises created by Congress to provide access to low-cost funding for their member financial institutions, with particular attention paid to providing solutions that support the housing and small business needs of members' customers. FHLBanks are privately capitalized and funded, and they receive no Congressional appropriations. One of 11 independent regional cooperative banks across the U.S., FHLBank Indianapolis is owned by its Indiana and Michigan financial institution members, including commercial banks, credit unions, insurance companies, savings institutions and community development financial institutions. For more information about FHLBank Indianapolis, visit www.fhlbi.com and follow the Bank on LinkedIn, and Instagram and X at @FHLBankIndy. (Please note that content the Bank shares on its website and social media is not incorporated by reference into any of its filings with the SEC unless, and only to the extent that a filing by the Bank with the SEC expressly provides to the contrary.)