Federal Home Loan Bank of Dallas Reports First Quarter 2019 Operating Results

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    DALLAS–(BUSINESS WIRE)–The Federal Home Loan Bank of Dallas (Bank) today reported net income of
    $58.4 million for the quarter ended March 31, 2019. In comparison, for
    the quarters ended December 31, 2018 and March 31, 2018, the Bank
    reported net income of $58.1 million and $41.7 million, respectively.

    Total assets at March 31, 2019 were $69.0 billion, compared with $72.8
    billion at December 31, 2018. The $3.8 billion decrease in total assets
    for the first quarter was attributable primarily to a decrease in the
    Bank’s advances ($4.7 billion), offset by increases in the Bank’s
    mortgage loans held for portfolio ($0.4 billion), long-term investments
    ($0.2 billion) and short-term liquidity portfolio ($0.2 billion).

    Advances totaled $36.1 billion at March 31, 2019, compared with $40.8
    billion at December 31, 2018. The Bank’s mortgage loans held for
    portfolio totaled $2.6 billion at March 31, 2019, as compared to $2.2
    billion at December 31, 2018.

    The Bank’s long-term held-to-maturity securities portfolio, which is
    comprised substantially of U.S. agency residential mortgage-backed
    securities (MBS), totaled approximately $1.4 billion and $1.5 billion at
    March 31, 2019 and December 31, 2018, respectively. The Bank’s long-term
    available-for-sale securities portfolio, which is comprised
    substantially of U.S. agency debentures and U.S. agency commercial MBS,
    totaled $16.1 billion at March 31, 2019, as compared to $15.8 billion at
    December 31, 2018. At March 31, 2019 and December 31, 2018, the Bank
    also held a $0.1 billion long-term U.S. Treasury Note classified as
    trading.

    The Bank’s short-term liquidity portfolio, which is comprised
    substantially of overnight interest-bearing deposits, overnight federal
    funds sold, overnight reverse repurchase agreements, U.S. Treasury Bills
    and U.S. Treasury Notes with short remaining terms to maturity, totaled
    $12.4 billion at March 31, 2019, compared to $12.2 billion at
    December 31, 2018.

    The Bank’s retained earnings increased to $1.121 billion at March 31,
    2019 from $1.081 billion at December 31, 2018. On March 27, 2019, a
    dividend of $19.1 million was paid to the Bank’s shareholders.

    Additional selected financial data as of and for the quarter ended
    March 31, 2019 (and, for comparative purposes, as of December 31, 2018,
    and for the quarters ended December 31, 2018 and March 31, 2018) is set
    forth below. Further discussion and analysis regarding the Bank’s
    results will be included in its Form 10-Q for the quarter ended
    March 31, 2019 to be filed with the Securities and Exchange Commission.

    About the Federal Home Loan Bank of Dallas

    The Federal Home Loan Bank of Dallas is one of 11 district banks in the
    FHLBank System, which was created by Congress in 1932. The Bank is a
    member-owned cooperative that supports housing and community development
    by providing competitively priced loans (known as advances) and other
    credit products to approximately 820 members and associated institutions
    in Arkansas, Louisiana, Mississippi, New Mexico and Texas. For more
    information, visit the Bank’s website at fhlb.com.

     
     
    Federal Home Loan Bank of Dallas
    Selected Financial Data
    As of and For the Quarter Ended March 31, 2019
    (Unaudited, in thousands)
     
        March 31, 2019     December 31, 2018
    Selected Statement of Condition Data:
     
    Assets
    Investments (1) $ 30,040,987 $ 29,551,929
    Advances 36,096,595 40,793,813
    Mortgage loans held for portfolio, net 2,594,412 2,185,503
    Cash and other assets   305,498     242,045
    Total assets $ 69,037,492   $ 72,773,290
     
    Liabilities
    Consolidated obligations
    Discount notes $ 37,369,065 $ 35,731,713
    Bonds   26,746,361     31,931,929
    Total consolidated obligations 64,115,426 67,663,642
    Mandatorily redeemable capital stock 7,753 6,979
    Other liabilities   1,202,919     1,338,413
    Total liabilities   65,326,098     69,009,034
    Capital
    Capital stock — putable 2,431,577 2,554,888
    Retained earnings 1,120,615 1,081,367
    Total accumulated other comprehensive income   159,202     128,001
    Total capital   3,711,394     3,764,256
    Total liabilities and capital $ 69,037,492   $ 72,773,290
     
    Total regulatory capital (2) $ 3,559,945   $ 3,643,234
     
        For the     For the     For the
    Quarter Ended Quarter Ended Quarter Ended
    March 31, 2019 December 31, 2018 March 31, 2018
    Selected Statement of Income Data:
    Net interest income (3) (4) $ 71,978 $ 85,431 $ 68,093
    Other income (loss) (4) 16,977 1,765 2,274
    Other expense 24,065 22,597 23,991
    AHP assessment   6,494   6,465   4,640
    Net income $ 58,396 $ 58,134 $ 41,736
     
    (1)   Investments consist of interest-bearing deposits, securities
    purchased under agreements to resell, federal funds sold, trading
    securities, available-for-sale securities and held-to-maturity
    securities.
     
    (2) As of March 31, 2019 and December 31, 2018, total regulatory capital
    represented 5.16 percent and 5.01 percent, respectively, of total
    assets as of those dates.
     
    (3) Net interest income is net of the provision for loan losses.
     
    (4) Beginning January 1, 2019, the Bank records hedge ineffectiveness
    associated with fair value hedging relationships in net interest
    income in accordance with the provisions of ASU 2017-12, “Targeted
    Improvements to Accounting for Hedging Activities.” Prior to January
    1, 2019, these amounts were recorded in other income (loss). During
    the quarter ended March 31, 2019, fair value hedge ineffectiveness
    reduced net interest income by $9.340 million.
     

    Contacts

    Corporate Communications
    Federal Home Loan Bank of Dallas
    fhlb.com
    (214)
    441-8445