DALLAS--(BUSINESS WIRE)--The Federal Home Loan Bank of Dallas (Bank) today reported net income of $43.8 million for the quarter ended June 30, 2017. In comparison, for the quarters ended March 31, 2017 and June 30, 2016, the Bank reported net income of $35.1 million and $21.2 million, respectively. For the six months ended June 30, 2017, the Bank reported net income of $78.9 million, as compared to $29.5 million for the six months ended June 30, 2016.
The $8.7 million increase in net income from the first quarter to the second quarter of 2017 was attributable primarily to increases in the Bank's net interest income ($8.8 million) and gains on sales of long-term investment securities ($2.4 million) and a decrease in its non-interest expenses ($1.5 million), offset by a decrease in the aggregate net gains associated with the Bank's derivatives and hedging activities and its trading securities portfolio ($3.7 million) and an increase in its Affordable Housing Program assessment ($1.0 million).
Total assets at June 30, 2017 were $62.9 billion, compared with $57.5 billion at March 31, 2017 and $58.2 billion at December 31, 2016. The $5.4 billion increase in total assets for the second quarter was attributable primarily to increases in the Bank's advances ($3.0 billion), short-term liquidity portfolio ($1.8 billion), long-term investments ($0.2 billion) and mortgage loans held for portfolio ($0.2 billion). For the six months ended June 30, 2017, the $4.7 billion increase in total assets was attributable primarily to increases in the Bank's advances ($1.6 billion), short-term liquidity portfolio ($1.9 billion), long-term investments ($0.8 billion) and mortgage loans held for portfolio ($0.3 billion). Advances totaled $34.1 billion at June 30, 2017, compared with $31.1 billion at March 31, 2017 and $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 $2.2 billion at June 30, 2017 as compared to $2.4 billion at March 31, 2017 and $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 $14.3 billion at June 30, 2017 as compared to $13.9 billion at March 31, 2017 and $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 June 30, 2017, 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 $11.5 billion at June 30, 2017, compared to $9.7 billion at March 31, 2017 and $9.6 billion at December 31, 2016.
The Bank's mortgage loans held for portfolio totaled $379 million at June 30, 2017, as compared to $178 million at March 31, 2017 and $124 million at December 31, 2016.
The Bank's retained earnings increased to $890 million at June 30, 2017 from $853 million at March 31, 2017 and $824 million at December 31, 2016. On June 28, 2017, a dividend of $7.3 million was paid to the Bank's shareholders.
Additional selected financial data as of and for the quarter ended June 30, 2017 (and, for comparative purposes, as of March 31, 2017 and December 31, 2016 and for the quarters ended March 31, 2017 and June 30, 2016) is set forth below. Further discussion and analysis regarding the Bank's second quarter results will be included in its Form 10-Q for the quarter ended June 30, 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 840 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 June 30, 2017 |
| (Unaudited, in thousands) |
| June 30, 2017 | March 31, 2017 | December 31, 2016 | |||||||
| Selected Statement of Condition Data: | |||||||||
| Assets | |||||||||
| Investments (1) | $ | 28,122,619 | $ | 26,040,636 | $ | 25,419,421 | |||
| Advances | 34,132,238 | 31,058,811 | 32,506,175 | ||||||
| Mortgage loans held for portfolio, net | 378,885 | 178,107 | 123,961 | ||||||
| Cash and other assets | 228,755 | 248,131 | 162,520 | ||||||
| Total assets | $ | 62,862,497 | $ | 57,525,685 | $ | 58,212,077 | |||
| Liabilities | |||||||||
| Consolidated obligations | |||||||||
| Discount notes | $ | 28,014,878 | $ | 22,783,297 | $ | 26,941,782 | |||
| Bonds | 30,020,333 | 30,127,957 | 26,997,487 | ||||||
| Total consolidated obligations | 58,035,211 | 52,911,254 | 53,939,269 | ||||||
| Mandatorily redeemable capital stock | 23,146 | 2,865 | 3,417 | ||||||
| Other liabilities | 1,666,835 | 1,670,266 | 1,452,049 | ||||||
| Total liabilities | 59,725,192 | 54,584,385 | 55,394,735 | ||||||
| Capital | |||||||||
| Capital stock — putable | 2,114,575 | 1,952,078 | 1,930,148 | ||||||
| Retained earnings | 889,544 | 853,042 | 823,984 | ||||||
| Total accumulated other comprehensive income | 133,186 | 136,180 | 63,210 | ||||||
| Total capital | 3,137,305 | 2,941,300 | 2,817,342 | ||||||
| Total liabilities and capital | $ | 62,862,497 | $ | 57,525,685 | $ | 58,212,077 | |||
| Total regulatory capital (2) | $ | 3,027,265 | $ | 2,807,985 | $ | 2,757,549 | |||
| For the | For the | For the | For the | For the | ||||||||||||
| Quarter Ended | Quarter Ended | Quarter Ended | Six Months Ended | Six Months Ended | ||||||||||||
| June 30, 2017 | March 31, 2017 | June 30, 2016 | June 30, 2017 | June 30, 2016 | ||||||||||||
| Selected Statement of Income Data: | ||||||||||||||||
| Net interest income | $ | 61,514 | $ | 52,746 | $ | 37,813 | $ | 114,260 | $ | 73,547 | ||||||
| Other income (loss) | 7,890 | 8,557 | 5,393 | 16,447 | (1,703 | ) | ||||||||||
| Other expense | 20,774 | 22,260 | 19,662 | 43,034 | 39,092 | |||||||||||
| AHP assessment | 4,867 | 3,905 | 2,355 | 8,772 | 3,277 | |||||||||||
| Net income | $ | 43,763 | $ | 35,138 | $ | 21,189 | $ | 78,901 | $ | 29,475 | ||||||
| (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 June 30, 2017, March 31, 2017 and December 31, 2016, total regulatory capital represented 4.82 percent, 4.88 percent and 4.74 percent, respectively, of total assets as of those dates. |
