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