EX-99.1 2 fhlbdallasearningsrelease-.htm PRESS RELEASE DATED OCTOBER 30, 2012 DISCLOSING FINANCIAL INFORMATION REGARDING THE QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2012. FHLBDallasEarningsRelease-Q32012 (1)



Exhibit 99.1
FOR IMMEDIATE RELEASE

October 30, 2012

Contact:

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



Federal Home Loan Bank of Dallas
Reports Third Quarter Earnings

DALLAS, TEXAS, October 30, 2012 – 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.



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,
 
June 30,
 
December 31,
 
 
2012
 
2012
 
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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 For the
 
 For the
 
 
 
 
 Three Months
 
 Nine Months
 
 
 
 
Ended
 
Ended
Selected Statement of Income Data:
 
 
 
September 30, 2012
 
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.
 
 
 
 
 
 
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