The Federal Home Loan Bank of Dallas (Bank) today reported net income of $58.4 million for the quarter ended March 31, 2019. In comparison, for the quarters ended December 31, 2018 and March 31, 2018, the Bank reported net income of $58.1 million and $41.7 million, respectively.
Total assets at March 31, 2019 were $69.0 billion, compared with $72.8 billion at December 31, 2018. The $3.8 billion decrease in total assets for the first quarter was attributable primarily to a decrease in the Bank's advances ($4.7 billion), offset by increases in the Bank's mortgage loans held for portfolio ($0.4 billion), long-term investments ($0.2 billion) and short-term liquidity portfolio ($0.2 billion).
Advances totaled $36.1 billion at March 31, 2019, compared with $40.8 billion at December 31, 2018. The Bank's mortgage loans held for portfolio totaled $2.6 billion at March 31, 2019, as compared to $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 $1.4 billion and $1.5 billion at March 31, 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 $16.1 billion at March 31, 2019, as compared to $15.8 billion at December 31, 2018. At March 31, 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 with short remaining terms to maturity, totaled $12.4 billion at March 31, 2019, compared to $12.2 billion at December 31, 2018.
The Bank's retained earnings increased to $1.121 billion at March 31, 2019 from $1.081 billion at December 31, 2018. On March 27, 2019, a dividend of $19.1 million was paid to the Bank's shareholders.
Additional selected financial data as of and for the quarter ended March 31, 2019 (and, for comparative purposes, as of December 31, 2018, and for the quarters ended December 31, 2018 and March 31, 2018) is set forth below. Further discussion and analysis regarding the Bank's results will be included in its Form 10-Q for the quarter ended March 31, 2019 to be filed with the Securities and Exchange Commission.
About the Federal Home Loan Bank of Dallas
The Federal Home Loan Bank of Dallas is one of 11 district banks in the FHLBank System, which was created by Congress in 1932. The Bank is a member-owned cooperative that supports housing and community development by providing competitively priced loans (known as advances) and other credit products to approximately 820 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico and Texas. For more information, visit the Bank's website at fhlb.com.
|Federal Home Loan Bank of Dallas|
|Selected Financial Data|
|As of and For the Quarter Ended March 31, 2019|
|(Unaudited, in thousands)|
|March 31, 2019||December 31, 2018|
|Selected Statement of Condition Data:|
|Mortgage loans held for portfolio, net||2,594,412||2,185,503|
|Cash and other assets||305,498||242,045|
|Total consolidated obligations||64,115,426||67,663,642|
|Mandatorily redeemable capital stock||7,753||6,979|
|Capital stock — putable||2,431,577||2,554,888|
|Total accumulated other comprehensive income||159,202||128,001|
|Total liabilities and capital||$||69,037,492||$||72,773,290|
|Total regulatory capital (2)||$||3,559,945||$||3,643,234|
|For the||For the||For the|
|Quarter Ended||Quarter Ended||Quarter Ended|
|March 31, 2019||December 31, 2018||March 31, 2018|
|Selected Statement of Income Data:|
|Net interest income (3) (4)||$||71,978||$||85,431||$||68,093|
|Other income (loss) (4)||16,977||1,765||2,274|
|(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 March 31, 2019 and December 31, 2018, total regulatory capital represented 5.16 percent and 5.01 percent, respectively, of total assets as of those dates.|
|(3)||Net interest income is net of the provision for 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 March 31, 2019, fair value hedge ineffectiveness reduced net interest income by $9.340 million.|