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Federal Home Loan Bank of Dallas Reports Third Quarter Earnings

Federal Home Loan Bank of Dallas Logo

DALLAS, Oct. 30, 2012 (GLOBE NEWSWIRE) -- The Federal Home Loan Bank of Dallas (Bank) today reported net income of $17.8 million for the quarter ended September 30, 2012. For the nine months ended September 30, 2012, the Bank reported net income of $64.5 million.

Total assets at September 30, 2012 were $35.2 billion, compared with $34.7 billion at June 30, 2012 and $33.8 billion at December 31, 2011. The $0.5 billion increase in total assets for the third quarter was attributable primarily to increases in the Bank's advances ($0.3 billion) and short-term liquidity portfolio ($0.4 billion), which were offset in part by declines in its long-term held-to-maturity securities portfolio ($0.3 billion). For the nine-month period ended September 30, 2012, the $1.4 billion increase in total assets was attributable to increases in the Bank's long-term available-for-sale securities portfolio ($0.9 billion), short-term liquidity portfolio ($1.1 billion) and advances ($0.7 billion), which were offset by a decline in the Bank's long-term held-to-maturity securities portfolio ($1.2 billion).

Advances totaled $19.5 billion at September 30, 2012, compared with $19.2 billion at June 30, 2012 and $18.8 billion at December 31, 2011. The Bank's lending activities remained relatively subdued during the first nine months of 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 $5.5 billion at June 30, 2012 and $6.4 billion at December 31, 2011 to $5.2 billion at September 30, 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 $266.9 million at September 30, 2012, compared with $287.9 million at June 30, 2012 and $316.7 million at December 31, 2011. During the quarter and nine months ended September 30, 2012, the Bank acquired approximately $0.2 billion 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 June 30, 2012 and September 30, 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 $4.4 billion at September 30, 2012, as compared to $4.0 billion at June 30, 2012 and $3.3 billion at December 31, 2011.

The Bank's retained earnings increased to $555.8 million at September 30, 2012, from $539.1 million at June 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 $46.0 million at June 30, 2012 and $51.4 million at December 31, 2011 to $43.7 million at September 30, 2012. Accumulated other comprehensive income attributable to net unrealized gains on the Bank's available-for-sale securities portfolio totaled $11.6 million, $0.7 million and $5.2 million as of September 30, 2012, June 30, 2012 and December 31, 2011, respectively.

Additional selected financial data as of and for the quarter and nine months ended September 30, 2012 is set forth below. Further discussion and analysis regarding the Bank's third quarter and year-to-date results will be included in its Form 10-Q for the quarterly period ended September 30, 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 Three and Nine Months Ended September 30, 2012
(Unaudited, in thousands)
September 30,
2012
June 30,
2012
December 31,
2011
Selected Statement of Condition Data:
Assets
Investments (1) $15,420,149 $13,805,508 $13,537,564
Advances 19,480,464 19,207,379 18,797,834
Mortgage loans held for portfolio, net 130,947 140,443 162,645
Cash and other assets 156,581 1,575,657 1,271,924
Total assets $35,188,141 $34,728,987 $33,769,967
Liabilities
Consolidated obligations
Discount notes $ 5,692,560 $ 9,507,659 $ 9,799,010
Bonds 26,286,910 22,049,307 20,070,056
Total consolidated obligations 31,979,470 31,556,966 29,869,066
Mandatorily redeemable capital stock 4,531 4,890 14,980
Other liabilities 1,431,617 1,468,344 2,181,086
Total liabilities 33,415,618 33,030,200 32,065,132
Capital
Capital stock - putable 1,248,279 1,204,441 1,255,793
Retained earnings 555,775 539,124 494,657
Total accumulated other comprehensive loss (31,531) (44,778) (45,615)
Total capital 1,772,523 1,698,787 1,704,835
Total liabilities and capital $35,188,141 $34,728,987 $33,769,967
Total regulatory capital (2) $ 1,808,585 $ 1,748,455 $ 1,765,430
Selected Statement of Income Data: For the
Three Months
Ended
September 30, 2012
For the
Nine Months
Ended
September 30, 2012
Net interest income $ 41,727 $ 122,930
Other income (loss) (4,803) 3,276
Other expense 17,195 54,503
Assessments 1,973 7,172
Net income $ 17,756 $ 64,531
(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 September 30, 2012, June 30, 2012 and December 31, 2011, total regulatory capital represented 5.14 percent, 5.03 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

Source:Federal Home Loan Bank of Dallas