8-K

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): April 28, 2011

Federal Home Loan Bank of Dallas
__________________________________________
(Exact name of registrant as specified in its charter)

Federally Chartered Corporation	000-51405	71-6013989
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)
8500 Freeport Parkway South, Suite 600, Irving, Texas		75063-2547
_________________________________ (Address of principal executive offices)		___________ (Zip Code)

Registrant’s telephone number, including area code: 214-441-8500

Not Applicable
______________________________________________
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On April 28, 2011, the Federal Home Loan Bank of Dallas issued a press release disclosing information regarding its financial condition at March 31, 2011 and its results of operations for the quarter ended March 31, 2011. A copy of the press release is attached to this Current Report on Form 8-K as Exhibit 99.1. The information contained in this Item 2.02 and Exhibit 99.1 attached hereto is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

Exhibits

99.1 Press release dated April 28, 2011 disclosing financial information regarding the quarter ended March 31, 2011

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Federal Home Loan Bank of Dallas
April 28, 2011	By:	/s/ Tom Lewis
		Name: Tom Lewis
		Title: Senior Vice President and Chief Accounting Officer

Exhibit Index

Exhibit No.	Description
99.1	Press release dated April 28, 2011 disclosing financial information regarding the quarter ended March 31, 2011

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

April 28, 2011

Contact:

Corporate Communications
Federal Home Loan Bank of Dallas
www.fhlb.com
(214) 441-8445

Federal Home Loan Bank of Dallas
Reports First Quarter Earnings

DALLAS, TEXAS – The Federal Home Loan Bank of Dallas (Bank) today reported net income of $11.5 million for the quarter ended March 31, 2011.

Total assets at March 31, 2011 were $33.2 billion, compared with $39.7 billion at December 31, 2010. The $6.5 billion decrease in total assets during the first quarter was attributable primarily to declines in the Bank’s short-term liquidity portfolio ($2.2 billion), advances ($3.7 billion) and its long-term held-to-maturity securities portfolio ($0.7 billion).

Advances were $21.8 billion at March 31, 2011, compared with $25.5 billion at December 31, 2010. During the first quarter, advances to the Bank’s top five borrowers decreased by $1.4 billion, including the maturity of $1.0 billion in advances to the Bank’s largest borrower. In addition, $0.8 billion of maturing advances were repaid following the consolidation of several members’ charters into the charter of an out-of-district institution. The remaining decline in advances during the period was spread broadly across the Bank’s members.

Due to principal repayments on mortgage-backed securities (MBS), the Bank’s held-to-maturity securities portfolio declined from $8.5 billion at December 31, 2010 to $7.8 billion at March 31, 2011. The Bank did not acquire any MBS during the first quarter. The Bank’s short-term liquidity portfolio (comprised of non-interest bearing excess cash balances, overnight federal funds sold and, as of March 31, 2011, a 1-day reverse repurchase agreement) decreased from $5.4 billion at December 31, 2010 to $3.2 billion at March 31, 2011.

The Bank’s operating results for the quarter ended March 31, 2011 included credit-related other-than-temporary impairment charges totaling $1.4 million on eight of its investments in non-agency (private-label) residential MBS (RMBS), all of which had previously been impaired. The unpaid principal balance of the Bank’s 37 non-agency RMBS holdings, all of which are classified as held-to-maturity, totaled $371.0 million at March 31, 2011, compared with $397.9 million at December 31, 2010.

The Bank’s retained earnings increased to $462.2 million at March 31, 2011, from $452.2 million at December 31, 2010. Accumulated other comprehensive loss attributable to the non-credit portion of other-than-temporary impairment losses on the Bank’s non-agency RMBS holdings decreased from $63.3 million at December 31, 2010 to $57.3 million at March 31, 2011.

Additional selected financial data as of and for the quarter ended March 31, 2011 is set forth below. Further discussion and analysis regarding the Bank’s first quarter results will be included in its Form 10-Q for the quarterly period ended March 31, 2011 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.

Federal Home Loan Bank of Dallas

Selected Financial Data

As of and For the Three Months Ended March 31, 2011

(Unaudited, in thousands)

	March 31,			December 31,
	2011			2010
Selected Statement of Condition Data:
Investments (1)	$	10,545,849		$	12,268,954
Advances		21,804,806			25,455,656
Mortgage loans held for portfolio, net		194,478			207,168
Total assets		33,169,709			39,690,070
Consolidated obligations, net		29,802,425			36,447,583
Mandatorily redeemable capital stock		18,131			8,076
Capital stock — putable		1,427,810			1,600,909
Retained earnings		462,188			452,205
Total accumulated other comprehensive
income (loss)		(56,743	)		(62,702	)
Total capital (2)		1,833,255			1,990,412

	For the Three
	Months Ended
	March 31, 2011
Selected Statement of Income Data:
Net interest income	$	42,123
Credit component of other-than-temporary
impairment losses		(1,378	)
Other loss		(4,889	)
Total other expense		20,157
Total assessments		4,166
Net income		11,533

(1) Investments consist of interest-bearing deposits, securities purchased under
	agreements to resell, federal funds sold, trading securities, and held-to-maturity
	securities.

(2) As of March 31, 2011 and December 31, 2010, total regulatory capital was
	$1,908,129 and $2,061,190, respectively, which represented 5.75 percent
	and 5.19 percent, respectively, of total assets as of those dates.

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