DALLAS--(BUSINESS WIRE)--The Federal Home Loan Bank of Dallas (Bank) today reported net income of $35.1 million for the quarter ended March 31, 2017. In comparison, for the quarter ended December 31, 2016, the Bank reported net income of $28.8 million.
The increase in net income from quarter to quarter was attributable primarily to increases in the Bank's net interest income ($5.9 million), aggregate net gains associated with the Bank's derivatives and hedging activities and its trading securities portfolio ($0.9 million) and gains on sales of available-for-sale securities ($0.7 million), offset by increases in non-interest expenses ($0.4 million) and Affordable Housing Program assessments ($0.7 million).
Total assets at March 31, 2017 were $57.5 billion, compared with $58.2 billion at December 31, 2016. The $0.7 billion decrease in total assets for the first quarter was attributable primarily to a decrease in the Bank's advances ($1.4 billion) offset by an increase in its long-term investments ($0.6 billion). Advances totaled $31.1 billion at March 31, 2017, compared with $32.5 billion at December 31, 2016.
The Bank's long-term held-to-maturity securities portfolio, which is comprised substantially of U.S. agency residential mortgage-backed securities (MBS), totaled $2.4 billion at March 31, 2017 as compared to $2.5 billion at December 31, 2016. The Bank's long-term available-for-sale securities portfolio, which is comprised substantially of U.S. agency and other highly rated debentures and U.S. agency commercial MBS, totaled $13.9 billion at March 31, 2017 as compared to $13.2 billion at December 31, 2016. The Bank also held a $0.1 billion long-term U.S. Treasury Note in its trading securities portfolio at both March 31, 2017 and December 31, 2016.
The Bank's short-term liquidity portfolio, which is comprised substantially of overnight federal funds sold (including loans to other Federal Home Loan Banks) and reverse repurchase agreements, totaled $9.7 billion at March 31, 2017, compared to $9.6 billion at December 31, 2016.
The Bank's retained earnings increased to $853.0 million at March 31, 2017 from $824.0 million at December 31, 2016. On March 29, 2017, a dividend of $6.1 million was paid to the Bank's shareholders.
Additional selected financial data as of and for the quarter ended March 31, 2017 (and, for comparative purposes, as of and for the quarter ended December 31, 2016) is set forth below. Further discussion and analysis regarding the Bank's first quarter results will be included in its Form 10-Q for the quarter ended March 31, 2017 to be filed with the Securities and Exchange Commission.
About the Federal Home Loan Bank of Dallas
The Federal Home Loan Bank of Dallas is one of 11 district banks in the FHLBank System, which was created by Congress in 1932. The Bank is a member-owned cooperative that supports housing and community development by providing competitively priced loans (known as advances) and other credit products to approximately 850 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico and Texas. For more information, visit the Bank's website at fhlb.com.
|Federal Home Loan Bank of Dallas|
|Selected Financial Data|
|As of and For the Quarter Ended March 31, 2017|
|(Unaudited, in thousands)|
|March 31, 2017||December 31, 2016|
|Selected Statement of Condition Data:|
|Mortgage loans held for portfolio, net||178,107||123,961|
|Cash and other assets||248,131||162,520|
|Total consolidated obligations||52,911,254||53,939,269|
|Mandatorily redeemable capital stock||2,865||3,417|
|Capital stock — putable||1,952,078||1,930,148|
|Total accumulated other comprehensive income||136,180||63,210|
|Total liabilities and capital||$||57,525,685||$||58,212,077|
|Total regulatory capital (2)||$||2,807,985||$||2,757,549|
|For the Quarter Ended||For the Quarter Ended|
|March 31, 2017||December 31, 2016|
|Selected Statement of Income Data:|
|Net interest income||$||52,746||$||46,815|
|(1)||Investments consist of interest-bearing deposits, securities purchased under agreements to resell, federal funds sold, loans to other Federal Home Loan Banks, trading securities, available-for-sale securities and held-to-maturity securities.|
|(2)||As of March 31, 2017 and December 31, 2016, total regulatory capital represented 4.88 percent and 4.74 percent, respectively, of total assets as of those dates.|