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DALLAS–(BUSINESS WIRE)–The Federal Home Loan Bank of Dallas (Bank) today reported net income of $61.7 million for the quarter ended December 31, 2019. In comparison, for the quarters ended September 30, 2019 and December 31, 2018, the Bank reported net income of $53.1 million and $58.1 million, respectively. For the year ended December 31, 2019, the Bank reported net income of $227.3 million, as compared to $198.8 million for the year ended December 31, 2018.

Total assets at December 31, 2019 were $75.4 billion, compared with $73.8 billion at September 30, 2019 and $72.8 billion at December 31, 2018. The $1.6 billion increase in total assets for the fourth quarter was attributable primarily to increases in the Bank’s short-term liquidity portfolio ($2.7 billion) and mortgage loans held for portfolio ($0.5 billion), partially offset by decreases in the Bank’s advances ($1.1 billion) and long-term investments ($0.4 billion). The $2.6 billion increase in total assets for the year ended December 31, 2019 was attributable primarily to increases in the Bank’s short-term liquidity portfolio ($3.6 billion), mortgage loans held for portfolio ($1.9 billion) and long-term investments ($0.7 billion), partially offset by a decrease in the Bank’s advances ($3.7 billion).

Advances totaled $37.1 billion at December 31, 2019, compared with $38.2 billion at September 30, 2019 and $40.8 billion at December 31, 2018. The Bank’s mortgage loans held for portfolio totaled $4.1 billion at December 31, 2019, as compared to $3.6 billion at September 30, 2019 and $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 $1.2 billion, $1.2 billion and $1.5 billion at December 31, 2019, September 30, 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 $16.8 billion at December 31, 2019, as compared to $17.2 billion at September 30, 2019 and $15.8 billion at December 31, 2018. At December 31, 2019, September 30, 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, totaled $15.8 billion at December 31, 2019, compared to $13.1 billion at September 30, 2019 and $12.2 billion at December 31, 2018.

The Bank’s retained earnings increased to $1.233 billion at December 31, 2019 from $1.189 billion at September 30, 2019 and $1.081 billion at December 31, 2018. On December 30, 2019, a dividend of $18.3 million was paid to the Bank’s shareholders.

Additional selected financial data as of and for the quarter and year ended December 31, 2019 (and, for comparative purposes, as of September 30, 2019 and December 31, 2018, and for the quarters ended September 30, 2019 and December 31, 2018 and the year ended December 31, 2018) is set forth below. Further discussion and analysis regarding the Bank’s results will be included in its Form 10-K for the year ended December 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 805 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 and Year Ended December 31, 2019

(Unaudited, in thousands)

 

 

December 31, 2019

 

September 30, 2019

 

December 31, 2018

Selected Statement of Condition Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Investments (1)

 

$

33,918,055

 

 

$

31,596,300

 

 

$

29,551,929

 

Advances

 

37,117,455

 

 

38,180,593

 

 

40,793,813

 

Mortgage loans held for portfolio, net

 

4,075,464

 

 

3,603,112

 

 

2,185,503

 

Cash and other assets

 

270,631

 

 

400,863

 

 

242,045

 

Total assets

 

$

75,381,605

 

 

$

73,780,868

 

 

$

72,773,290

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Consolidated obligations

 

 

 

 

 

 

Discount notes

 

$

34,327,886

 

 

$

33,878,782

 

 

$

35,731,713

 

Bonds

 

35,745,827

 

 

33,744,493

 

 

31,931,929

 

Total consolidated obligations

 

70,073,713

 

 

67,623,275

 

 

67,663,642

 

Mandatorily redeemable capital stock

 

7,140

 

 

7,106

 

 

6,979

 

Other liabilities

 

1,502,784

 

 

2,440,239

 

 

1,338,413

 

Total liabilities

 

71,583,637

 

 

70,070,620

 

 

69,009,034

 

Capital

 

 

 

 

 

 

Capital stock — putable

 

2,466,242

 

 

2,478,206

 

 

2,554,888

 

Retained earnings

 

1,232,677

 

 

1,189,261

 

 

1,081,367

 

Total accumulated other comprehensive income

 

99,049

 

 

42,781

 

 

128,001

 

Total capital

 

3,797,968

 

 

3,710,248

 

 

3,764,256

 

Total liabilities and capital

 

$

75,381,605

 

 

$

73,780,868

 

 

$

72,773,290

 

 

 

 

 

 

 

 

Total regulatory capital (2)

 

$

3,706,059

 

 

$

3,674,573

 

 

$

3,643,234

 

 

 

For the

 

For the

 

For the

 

For the

 

For the

 

 

Quarter Ended

 

Quarter Ended

 

Quarter Ended

 

Year Ended

 

Year Ended

 

 

December 31, 2019

 

September 30, 2019

 

December 31, 2018

 

December 31, 2019

 

December 31, 2018

Selected Statement of Income Data:

 

 

 

 

 

 

 

 

 

 

Net interest income (3) (4)

 

$

90,811

 

 

$

67,912

 

 

$

85,431

 

 

$

293,175

 

 

$

310,466

 

Other income (loss) (4)

 

2,299

 

 

14,900

 

 

1,765

 

 

56,320

 

 

1,961

 

Other expense

 

24,572

 

 

23,803

 

 

22,597

 

 

96,965

 

 

91,555

 

AHP assessment

 

6,858

 

 

5,905

 

 

6,465

 

 

25,272

 

 

22,097

 

Net income

 

$

61,680

 

 

$

53,104

 

 

$

58,134

 

 

$

227,258

 

 

$

198,775

 

(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 December 31, 2019, September 30, 2019 and December 31, 2018, total regulatory capital represented 4.92 percent, 4.98 percent and 5.01 percent, respectively, of total assets as of those dates.

(3)

Net interest income is net of the provision for mortgage 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 December 31, 2019, the quarter ended September 30, 2019 and the year ended December 31, 2019, fair value hedge ineffectiveness increased (reduced) net interest income by $13.335 million, $(6.279) million and $(17.909) million, respectively.

 

Contacts

Corporate Communications

Federal Home Loan Bank of Dallas

www.fhlb.com
(214) 441-8445