Federal Home Loan Bank of Dallas Reports First Quarter 2020 Operating Results

DALLAS--()--The Federal Home Loan Bank of Dallas (Bank) today reported net income of $51.6 million for the quarter ended March 31, 2020. In comparison, for the quarters ended December 31, 2019 and March 31, 2019, the Bank reported net income of $61.7 million and $58.4 million, respectively.

Total assets at March 31, 2020 were $83.8 billion, compared with $75.4 billion at December 31, 2019. The $8.4 billion increase in total assets for the first quarter was attributable primarily to an increase in the Bank's advances ($9.8 billion), partially offset by a decrease in the Bank's short-term liquidity holdings ($2.4 billion).

Advances totaled $46.9 billion at March 31, 2020, compared with $37.1 billion at December 31, 2019. The Bank's mortgage loans held for portfolio totaled $4.3 billion at March 31, 2020, as compared to $4.1 billion at December 31, 2019.

The carrying value of 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 at both March 31, 2020 and December 31, 2019. The carrying value of 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 $17.5 billion at March 31, 2020, as compared to $16.8 billion at December 31, 2019. At March 31, 2020 and December 31, 2019, the Bank also held a $0.1 billion long-term U.S. Treasury Note classified as trading.

The Bank's short-term liquidity holdings are typically comprised of overnight interest-bearing deposits, overnight federal funds sold, overnight reverse repurchase agreements, U.S. Treasury Bills, U.S. Treasury Notes and, from time to time, may also include cash held at the Federal Reserve. At March 31, 2020 and December 31, 2019, the Bank's short-term liquidity holdings totaled $13.4 billion and $15.8 billion, respectively.

The Bank's retained earnings increased to $1.267 billion at March 31, 2020 from $1.233 billion at December 31, 2019. On March 30, 2020, a dividend of $15.0 million was paid to the Bank's shareholders.

Additional selected financial data as of and for the quarter ended March 31, 2020 (and, for comparative purposes, as of December 31, 2019, and for the quarters ended December 31, 2019 and March 31, 2019) 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, 2020 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 Ended March 31, 2020

(Unaudited, in thousands)

 

 

March 31, 2020

 

December 31, 2019

Selected Statement of Condition Data:

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

Investments (1)

 

$

31,034,986

 

 

$

33,918,055

 

Advances

 

46,922,518

 

 

37,117,455

 

Mortgage loans held for portfolio, net

 

4,282,180

 

 

4,075,464

 

Cash and other assets (2)

 

1,567,769

 

 

270,631

 

Total assets

 

$

83,807,453

 

 

$

75,381,605

 

 

 

 

 

 

Liabilities

 

 

 

 

Consolidated obligations

 

 

 

 

Discount notes

 

$

43,953,217

 

 

$

34,327,886

 

Bonds

 

34,186,393

 

 

35,745,827

 

Total consolidated obligations

 

78,139,610

 

 

70,073,713

 

Mandatorily redeemable capital stock

 

6,779

 

 

7,140

 

Other liabilities

 

1,944,809

 

 

1,502,784

 

Total liabilities

 

80,091,198

 

 

71,583,637

 

Capital

 

 

 

 

Capital stock — putable

 

2,700,176

 

 

2,466,242

 

Retained earnings

 

1,267,039

 

 

1,232,677

 

Total accumulated other comprehensive income (loss)

 

(250,960

)

 

99,049

 

Total capital

 

3,716,255

 

 

3,797,968

 

Total liabilities and capital

 

$

83,807,453

 

 

$

75,381,605

 

 

 

 

 

 

Total regulatory capital (3)

 

$

3,973,994

 

 

$

3,706,059

 

 

 

For the

 

For the

 

For the

 

 

Quarter Ended

 

Quarter Ended

 

Quarter Ended

 

 

March 31, 2020

 

December 31, 2019

 

March 31, 2019

Selected Statement of Income Data:

 

 

 

 

 

 

Net interest income (4) (5)

 

$

45,592

 

 

$

90,811

 

 

$

71,978

 

Other income (loss)

 

35,390

 

 

2,299

 

 

16,977

 

Other expense

 

23,668

 

 

24,572

 

 

24,065

 

AHP assessment

 

5,734

 

 

6,858

 

 

6,494

 

Net income

 

$

51,580

 

 

$

61,680

 

 

$

58,396

 

(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)

At March 31, 2020, the Bank's cash and other assets included excess cash of $1.090 billion that was held at the Federal Reserve.

(3)

As of March 31, 2020 and December 31, 2019, total regulatory capital represented 4.74 percent and 4.92 percent, respectively, of total assets as of those dates.

(4)

Net interest income is net of the provision for mortgage loan losses.

(5)

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 the adoption of ASU 2017-12, these amounts were recorded in other income (loss). During the quarters ended March 31, 2020, December 31, 2019 and March 31, 2019, fair value hedge ineffectiveness increased (reduced) net interest income by $(36.890) million, $13.335 million and $(9.340) million, respectively.

 

Contacts

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

Release Summary

Federal Home Loan Bank of Dallas first quarter earnings.

Contacts

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