Federal Home Loan Bank of Dallas Reports First Quarter 2022 Operating Results


DALLAS–(BUSINESS WIRE)–Federal Home Loan Bank of Dallas (Bank) today reported net income of $41.1 million for the quarter ended March 31, 2022. In comparison, for the quarters ended December 31, 2021 and the March 31, 2021, the Bank reported net income revenue of $47.2 million and $47.9 million, respectively.

Total assets as of March 31, 2022 were $62.6 billion, compared to $63.5 billion as of December 31, 2021. The $0.9 billion decrease in total assets in the first quarter is mainly attributable to the decrease in the Bank’s long-term ($1.8 billion) and short-term investments. – term cash ($1.5 billion), partially offset by increases in advances from the Bank ($2.2 billion) and mortgage loans held for the portfolio ($0.2 billion).

Advances totaled $26.8 billion as at March 31, 2022, compared to $24.6 billion as at December 31, 2021. The Bank’s mortgage loans held for the portfolio totaled $3.7 billion as at March 31, 2022, compared to 3, $5 billion as of December 31, 2021.

The carrying value of the Bank’s long-term held-to-maturity securities portfolio, which consists primarily of US agency residential mortgage-backed securities (MBS), totaled $0.6 billion as of 31 March 2022 and as at December 31, 2021. the value of the Bank’s long-term available-for-sale securities portfolio, which consists primarily of U.S. agency debentures and U.S. agency commercial mortgage-backed securities, totaled $13.5 billion at March 31, 2022, compared to $15.3 billion at December 31, 2021. On March 31, 2022 and December 31, 2021, the Bank also held a $0.1 billion long-term U.S. Treasury note classified as transactional .

The Bank’s short-term liquidity is generally comprised of interest-bearing overnight deposits, sold overnight federal funds, 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. As of March 31, 2022 and December 31, 2021, the Bank’s short-term liquidity totaled $17.7 billion and $19.2 billion, respectively.

The Bank’s retained earnings increased from $1.558 billion as of December 31, 2021 to $1.596 billion as of March 31, 2022. On March 29, 2022, a dividend of $3.7 million was paid to shareholders of the Bank .

Additional selected financial data as at and for the quarter ended March 31, 2022 (and, for comparative purposes, December 31, 2021 and for the quarters ended December 31, 2021 and March 31, 2021 are set forth below. analysis of the Bank’s results will be included in its Form 10-Q for the three months ended March 31, 2022 to be filed with the Securities and Exchange Commission.

About 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 established by Congress in 1932. The Bank is a member-owned cooperative that supports housing and community development by providing competitively priced loans (called advances) and other credit products to approximately 800 member 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, 2022

(Unaudited, in thousands)

March 31, 2022

December 31, 2021

Condition statement data selected:

Assets

Investments (1)

$

31,255,476

$

34,653,202

Advances

26,763,391

24,637,464

Mortgages held for the portfolio, net

3,730,693

3,491,265

Cash and other assets

855 981

706,445

Total assets

$

62 605 541

$

63,488,376

Passives

Consolidated bonds

Coupons

$

15,062,428

$

11,003,026

Obligations

41,475,972

44,514,220

Total consolidated commitments

56,538,400

55,517,246

Compulsory reimbursable share capital

15,980

6,657

Other liabilities

1,988,946

4,030,782

Total responsibilities

58,543,326

59,554,685

Capital

Share capital — redeemable

2,291,216

2,192,504

Retained earnings

1,595,842

1,558,417

Accumulated other comprehensive income

175 157

182,770

total capital

4,062,215

3,933,691

Total liabilities and capital

$

62 605 541

$

63,488,376

Total regulatory capital (2)

$

3,903,038

$

3,757,578

For the

For the

For the

Quarter ended

Quarter ended

Quarter ended

March 31, 2022

December 31, 2021

March 31, 2021

Selected income statement data:

Net interest income (3) (4)

$90,185

$79,073

$80,055

Other income (losses)

(20,831)

1,563

(1,576)

Other expenses

23,667

28,170

25,287

AHP Assessment

4,569

5,246

5,319

Net revenue

$41,118

$47,220

$47,873

(1)

Investments include interest-bearing deposits, securities purchased under resale agreements, federal funds sold, trading securities, available-for-sale securities and held-to-maturity securities.

(2)

As of March 31, 2022 and December 31, 2021, total regulatory capital represented 6.23% and 5.92% of total assets respectively at those dates.

(3)

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

(4)

The Bank recognizes 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”. During the quarters ended March 31, 2022, December 31, 2021 and March 31, 2021, fair value hedge ineffectiveness increased net interest income by $12.403 million, $1.140 million and $19.464 million. dollars, respectively.

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