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

DALLAS--()--The Federal Home Loan Bank of Dallas (Bank) today reported net income of $53.1 million for the quarter ended September 30, 2019. In comparison, for the quarters ended June 30, 2019 and September 30, 2018, the Bank reported net income of $54.1 million and $50.1 million, respectively. For the nine months ended September 30, 2019, the Bank reported net income of $165.6 million, as compared to $140.6 million for the nine months ended September 30, 2018.

Total assets at September 30, 2019 were $73.8 billion, compared with $74.5 billion at June 30, 2019 and $72.8 billion at December 31, 2018. The $0.7 billion decrease in total assets for the third quarter was attributable primarily to decreases in the Bank's short-term liquidity portfolio ($1.3 billion) and advances ($0.6 billion), partially offset by increases in the Bank's mortgage loans held for portfolio ($0.6 billion) and long-term investments ($0.5 billion). The $1.0 billion increase in total assets for the nine months ended September 30, 2019 was attributable primarily to increases in the Bank's mortgage loans held for portfolio ($1.4 billion), long-term investments ($1.1 billion) and short-term liquidity portfolio ($0.9 billion), partially offset by a decrease in the Bank's advances ($2.6 billion).

Advances totaled $38.2 billion at September 30, 2019, compared with $38.8 billion at June 30, 2019 and $40.8 billion at December 31, 2018. The Bank's mortgage loans held for portfolio totaled $3.6 billion at September 30, 2019, as compared to $3.0 billion at June 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 September 30, 2019, June 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 $17.2 billion at September 30, 2019, as compared to $16.7 billion at June 30, 2019 and $15.8 billion at December 31, 2018. At September 30, 2019, June 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 $13.1 billion at September 30, 2019, compared to $14.4 billion at June 30, 2019 and $12.2 billion at December 31, 2018.

The Bank's retained earnings increased to $1.189 billion at September 30, 2019 from $1.155 billion at June 30, 2019 and $1.081 billion at December 31, 2018. On September 26, 2019, a dividend of $19.2 million was paid to the Bank's shareholders.

Additional selected financial data as of and for the quarter and nine months ended September 30, 2019 (and, for comparative purposes, as of June 30, 2019 and December 31, 2018, and for the quarters ended June 30, 2019 and September 30, 2018 and the nine months ended September 30, 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 September 30, 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 815 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 September 30, 2019

(Unaudited, in thousands)

 

 

 

September 30, 2019

 

June 30, 2019

 

December 31, 2018

Selected Statement of Condition Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Investments (1)

 

$

31,596,300

 

 

$

32,405,827

 

 

$

29,551,929

 

Advances

 

38,180,593

 

 

38,778,599

 

 

40,793,813

 

Mortgage loans held for portfolio, net

 

3,603,112

 

 

3,034,267

 

 

2,185,503

 

Cash and other assets

 

400,863

 

 

299,550

 

 

242,045

 

Total assets

 

$

73,780,868

 

 

$

74,518,243

 

 

$

72,773,290

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Consolidated obligations

 

 

 

 

 

 

Discount notes

 

$

33,878,782

 

 

$

39,656,798

 

 

$

35,731,713

 

Bonds

 

33,744,493

 

 

29,481,562

 

 

31,931,929

 

Total consolidated obligations

 

67,623,275

 

 

69,138,360

 

 

67,663,642

 

Mandatorily redeemable capital stock

 

7,106

 

 

7,093

 

 

6,979

 

Other liabilities

 

2,440,239

 

 

1,554,725

 

 

1,338,413

 

Total liabilities

 

70,070,620

 

 

70,700,178

 

 

69,009,034

 

Capital

 

 

 

 

 

 

Capital stock — putable

 

2,478,206

 

 

2,582,594

 

 

2,554,888

 

Retained earnings

 

1,189,261

 

 

1,155,367

 

 

1,081,367

 

Total accumulated other comprehensive income

 

42,781

 

 

80,104

 

 

128,001

 

Total capital

 

3,710,248

 

 

3,818,065

 

 

3,764,256

 

Total liabilities and capital

 

$

73,780,868

 

 

$

74,518,243

 

 

$

72,773,290

 

 

 

 

 

 

 

 

Total regulatory capital (2)

 

$

3,674,573

 

 

$

3,745,054

 

 

$

3,643,234

 

 

 

 

For the

 

For the

 

For the

 

For the

 

For the

 

 

Quarter Ended

 

Quarter Ended

 

Quarter Ended

 

Nine Months Ended

 

Nine Months Ended

 

 

September 30, 2019

 

June 30, 2019

 

September 30, 2018

 

September 30, 2019

 

September 30, 2018

Selected Statement of Income Data:

 

 

 

 

 

 

 

 

 

 

Net interest income (3) (4)

 

$

67,912

 

 

$

62,474

 

 

$

80,937

 

 

$

202,364

 

 

$

225,035

 

Other income (loss) (4)

 

14,900

 

 

22,144

 

 

(2,503

)

 

54,021

 

 

196

 

Other expense

 

23,803

 

 

24,525

 

 

22,798

 

 

72,393

 

 

68,958

 

AHP assessment

 

5,905

 

 

6,015

 

 

5,565

 

 

18,414

 

 

15,632

 

Net income

 

$

53,104

 

 

$

54,078

 

 

$

50,071

 

 

$

165,578

 

 

$

140,641

 

(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 September 30, 2019, June 30, 2019 and December 31, 2018, total regulatory capital represented 4.98 percent, 5.03 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 September 30, 2019, the quarter ended June 30, 2019 and the nine months ended September 30, 2019, fair value hedge ineffectiveness reduced net interest income by $6.279 million, $15.625 million and $31.244 million, respectively.

 

Contacts

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

Release Summary

The Federal Home Loan Bank of Dallas has issued its 2019 third quarter earnings release report.

Contacts

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