Market Overview

Federal Home Loan Bank of Dallas Reports Fourth Quarter and Full Year Earnings

DALLAS, Feb. 21, 2013 (GLOBE NEWSWIRE) -- The Federal Home Loan Bank of Dallas (Bank) today reported net income of $17.3 million for the quarter ended December 31, 2012. For the year ended December 31, 2012, the Bank reported net income of $81.8 million.

Total assets at December 31, 2012 were $35.8 billion, compared with $35.2 billion at September 30, 2012 and $33.8 billion at December 31, 2011. The $0.6 billion increase in total assets for the fourth quarter was attributable to an increase in the Bank's short-term liquidity portfolio ($1.7 billion) offset by a decline in its advances ($1.1 billion). For the year ended December 31, 2012, the $2.0 billion increase in total assets was attributable primarily to increases in the Bank's short-term liquidity portfolio ($2.8 billion) and its long-term available-for-sale securities portfolio ($0.9 billion), which were offset by declines in the Bank's long-term held-to-maturity securities portfolio ($1.2 billion) and advances ($0.4 billion).

Advances totaled $18.4 billion at December 31, 2012, compared with $19.5 billion at September 30, 2012 and $18.8 billion at December 31, 2011. The Bank's lending activities remained relatively subdued during the year due largely to members' high deposit levels and weak demand for loans at member institutions.

Due to principal repayments on mortgage-backed securities (MBS), the Bank's held-to-maturity securities portfolio declined from $6.4 billion at December 31, 2011 to $5.2 billion at both September 30, 2012 and December 31, 2012. The unpaid principal balance of the Bank's investments in non-agency (private-label) residential MBS (RMBS), all of which are classified as held-to-maturity, totaled $255.6 million at December 31, 2012, compared with $266.9 million at September 30, 2012 and $316.7 million at December 31, 2011. During the quarter and year ended December 31, 2012, the Bank acquired approximately $0.5 billion and $0.7 billion, respectively, of U.S. agency MBS. The Bank's long-term available-for-sale securities portfolio, which is comprised entirely of U.S. agency and other highly rated debentures, increased from $4.9 billion at December 31, 2011 to $5.8 billion at both September 30, 2012 and December 31, 2012 due to purchases of additional debentures. The Bank's short-term liquidity portfolio (comprised primarily of non-interest bearing excess cash balances, overnight federal funds sold and overnight reverse repurchase agreements) totaled $6.1 billion at December 31, 2012, as compared to $4.4 billion at September 30, 2012 and $3.3 billion at December 31, 2011.

The Bank's retained earnings increased to $571.9 million at December 31, 2012, from $555.8 million at September 30, 2012 and $494.7 million at December 31, 2011. Accumulated other comprehensive loss attributable to the non-credit portion of other-than-temporary impairment losses on the Bank's non-agency RMBS holdings declined from $43.7 million at September 30, 2012 and $51.4 million at December 31, 2011 to $41.4 million at December 31, 2012. Accumulated other comprehensive income attributable to net unrealized gains on the Bank's available-for-sale securities portfolio totaled $22.5 million, $11.6 million and $5.2 million as of December 31, 2012, September 30, 2012 and December 31, 2011, respectively. 

Additional selected financial data as of and for the quarter and year ended December 31, 2012 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, 2012 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 12 district banks in the FHLBank System 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 more than 900 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico and Texas. For more information, visit the Bank's website at fhlb.com.

The Federal Home Loan Bank of Dallas logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3013

 

Federal Home Loan Bank of Dallas      
Selected Financial Data      
As of and For the Quarter and Year Ended December 31, 2012
(Unaudited, in thousands)      
       
  December 31, September 30, December 31,
  2012 2012 2011
Selected Statement of Condition Data:      
       
Assets      
Investments (1) $ 16,198,823 $ 15,420,149 $ 13,537,564
Advances 18,394,797 19,480,464 18,797,834
Mortgage loans held for portfolio, net 121,478 130,947 162,645
Cash and other assets 1,040,231 156,581 1,271,924
Total assets $ 35,755,329 $ 35,188,141 $ 33,769,967
       
Liabilities      
Consolidated obligations      
Discount notes $ 6,984,378 $ 5,692,560 $ 9,799,010
Bonds 25,697,936 26,286,910 20,070,056
Total consolidated obligations 32,682,314 31,979,470 29,869,066
Mandatorily redeemable capital stock 4,504 4,531 14,980
Other liabilities 1,297,877 1,431,617 2,181,086
Total liabilities 33,984,695 33,415,618 32,065,132
Capital      
Capital stock - putable 1,216,986 1,248,279 1,255,793
Retained earnings 571,893 555,775 494,657
Total accumulated other comprehensive loss (18,245) (31,531) (45,615)
Total capital 1,770,634 1,772,523 1,704,835
Total liabilities and capital $ 35,755,329 $ 35,188,141 $ 33,769,967
       
Total regulatory capital (2) $ 1,793,383 $ 1,808,585 $ 1,765,430
       
       
    For the For the
    Quarter Year
    Ended Ended
Selected Statement of Income Data:   December 31, 2012 December 31, 2012
       
Net interest income   $ 38,459 $ 161,389
Other income (loss)   (1,073) 2,203
Other expense   18,208 72,711
Assessments   1,918 9,090
Net income   $ 17,260 $ 81,791
       
(1) Investments consist of interest-bearing deposits, securities purchased under agreements to resell, federal funds sold, loans to other FHLBanks, trading securities, available-for-sale securities and held-to-maturity securities.
 
(2) As of December 31, 2012, September 30, 2012 and December 31, 2011, total regulatory capital represented 5.02 percent, 5.14 percent and 5.23 percent, respectively, of total assets as of those dates.
CONTACT: Corporate Communications Federal Home Loan Bank of Dallas www.fhlb.com (214) 441-8445

Federal Home Loan Bank of Dallas Logo

 

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