Federal Home Loan Bank of Dallas Reports First Quarter 2024 Operating Results

BY Business Wire | AGENCY | 04/29/24 12:58 PM EDT

DALLAS--(BUSINESS WIRE)-- The Federal Home Loan Bank of Dallas (Bank) today reported net income of $180.6 million for the quarter ended March 31, 2024. In comparison, for the quarters ended December 31, 2023 and March 31, 2023, the Bank reported net income of $212.4 million and $174.7 million, respectively.

Total assets at March 31, 2024 were $125.1 billion, compared with $128.3 billion at December 31, 2023. Average total assets decreased from $134.5 billion for the three months ended March 31, 2023 to $125.6 billion for the corresponding period in 2024. The $3.2 billion decrease in total assets during the first quarter of 2024 was primarily attributable to a decrease in the Bank's advances ($10.9 billion), partially offset by increases in the Bank's short-term liquidity holdings ($7.1 billion), long-term investments ($0.5 billion) and mortgage loans held for portfolio ($0.1 billion).

Advances totaled $69.1 billion at March 31, 2024, compared with $80.0 billion at December 31, 2023. The Bank's mortgage loans held for portfolio totaled $5.2 billion at March 31, 2024, as compared to $5.1 billion at December 31, 2023.

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 $0.2 billion and $0.3 billion at March 31, 2024 and December 31, 2023, respectively. 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 $18.3 billion at March 31, 2024, as compared to $17.7 billion at December 31, 2023. At March 31, 2024 and December 31, 2023, 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, 2024 and December 31, 2023, the Bank's short-term liquidity holdings totaled $31.7 billion and $24.6 billion, respectively.

The Bank's retained earnings increased to $2.513 billion at March 31, 2024 from $2.413 billion at December 31, 2023. On March 27, 2024, a dividend of $80.7 million was paid to the Bank's shareholders.

Additional selected financial data as of and for the three months ended March 31, 2024 (and, for comparative purposes, as of December 31, 2023 and for the quarters ended December 31, 2023 and March 31, 2023) 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, 2024 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 funding solutions, liquidity, and other credit products to approximately 800 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, 2024

(Unaudited, in thousands)

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?

? ?

March 31, 2024

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December 31, 2023

Selected Statement of Condition Data:

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?

?

? ?

?

Assets

? ?

?

Investments (1)

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$

????????????????????? 50,283,307

?

$

????????????????????? 42,631,192

Advances

? ?

?

69,089,394

?

?

79,951,855

Mortgage loans held for portfolio, net

? ?

?

5,235,701

?

?

5,088,642

Cash and other assets

? ?

?

530,216

?

?

592,923

Total assets

? ?

$

??????????????????? 125,138,618

?

$

??????????????????? 128,264,612

?

? ?

?

?

?

Liabilities

? ?

?

?

?

Consolidated obligations

? ?

?

?

?

Discount notes

? ?

$

????????????????????? 14,464,671

?

$

??????????????????????? 8,598,022

Bonds

? ?

?

100,725,004

?

?

109,536,207

Total consolidated obligations

? ?

?

115,189,675

?

?

118,134,229

Mandatorily redeemable capital stock

? ?

?

453

?

?

506

Other liabilities

? ?

?

2,830,177

?

?

2,870,657

Total liabilities

? ?

?

118,020,305

?

?

121,005,392

Capital

? ?

?

?

?

Capital stock ? putable

? ?

?

4,367,775

?

?

4,737,388

Retained earnings

? ?

?

2,512,859

?

?

2,412,983

Total accumulated other comprehensive income

? ?

?

237,679

?

?

108,849

Total capital

? ?

?

7,118,313

?

?

7,259,220

Total liabilities and capital

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$

??????????????????? 125,138,618

?

$

??????????????????? 128,264,612

?

? ?

?

Total regulatory capital (2)

? ?

$

??????????????????????? 6,881,087

?

$

??????????????????????? 7,150,877

?

?

?

For the

?

For the

?

For the

?

?

Quarter Ended

?

Quarter Ended

?

Quarter Ended

?

?

March 31, 2024

?

December 31, 2023

?

March 31, 2023

Selected Statement of Income Data:

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?

?

?

?

?

Net interest income (3)

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$

?????????????????????????? 223,498

?

$

???????????????????????? 251,393

?

$

???????????????????????????? 196,124

Other income

?

?

10,465

?

?

20,232

?

?

37,609

Other expense

?

?

33,306

?

?

35,611

?

?

39,644

AHP assessment

?

?

20,069

?

?

23,603

?

?

19,422

Net income

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$

?????????????????????????? 180,588

?

$

???????????????????????? 212,411

?

$

???????????????????????????? 174,667

(1)

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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)

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As of March 31, 2024 and December 31, 2023, total regulatory capital represented 5.50 percent and 5.58 percent, respectively, of total assets as of those dates.

(3)

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Net interest income is net of the provision (reversal) for loan losses.

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Source: Federal Home Loan Bank of Dallas

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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