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): July 27, 2017

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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act (17 CFR 230.405) or Rule 12b-2 of the Exchange Act (17 CFR 240.12b-2).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

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Item 2.02 Results of Operations and Financial Condition.

On July 27, 2017, the Federal Home Loan Bank of Dallas issued a press release disclosing information regarding its financial condition at June 30, 2017 and its results of operations for the quarter and six months ended June 30, 2017. 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 July 27, 2017 disclosing financial information regarding the quarter and six months ended June 30, 2017.

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
July 27, 2017	By:	/s/ Tom Lewis
		Name: Tom Lewis
		Title: Executive Vice President and Chief Financial Officer

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Exhibit Index

Exhibit No.	Description
99.1	Press release dated July 27, 2017 disclosing financial information regarding the quarter and six months ended June 30, 2017.

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

July 27, 2017

Contact:

Corporate Communications

Federal Home Loan Bank of Dallas

www.fhlb.com

(214) 441-8445

Federal Home Loan Bank of Dallas

Reports Second Quarter 2017 Operating Results

DALLAS, TEXAS, July 27, 2017 - The Federal Home Loan Bank of Dallas (Bank) today reported net income of $43.8 million for the quarter ended June 30, 2017. In comparison, for the quarters ended March 31, 2017 and June 30, 2016, the Bank reported net income of $35.1 million and $21.2 million, respectively. For the six months ended June 30, 2017, the Bank reported net income of $78.9 million, as compared to $29.5 million for the six months ended June 30, 2016.

The $8.7 million increase in net income from the first quarter to the second quarter of 2017 was attributable primarily to increases in the Bank's net interest income ($8.8 million) and gains on sales of long-term investment securities ($2.4 million) and a decrease in its non-interest expenses ($1.5 million), offset by a decrease in the aggregate net gains associated with the Bank's derivatives and hedging activities and its trading securities portfolio ($3.7 million) and an increase in its Affordable Housing Program assessment ($1.0 million).

Total assets at June 30, 2017 were $62.9 billion, compared with $57.5 billion at March 31, 2017 and $58.2 billion at December 31, 2016. The $5.4 billion increase in total assets for the second quarter was attributable primarily to increases in the Bank's advances ($3.0 billion), short-term liquidity portfolio ($1.8 billion), long-term investments ($0.2 billion) and mortgage loans held for portfolio ($0.2 billion). For the six months ended June 30, 2017, the $4.7 billion increase in total assets was attributable primarily to increases in the Bank's advances ($1.6 billion), short-term liquidity portfolio ($1.9 billion), long-term investments ($0.8 billion) and mortgage loans held for portfolio ($0.3 billion). Advances totaled $34.1 billion at June 30, 2017, compared with $31.1 billion at March 31, 2017 and $32.5 billion at December 31, 2016.

The Bank's long-term held-to-maturity securities portfolio, which is comprised substantially of U.S. agency residential mortgage-backed securities (MBS), totaled $2.2 billion at June 30, 2017 as compared to $2.4 billion at March 31, 2017 and $2.5 billion at December 31, 2016. The Bank's long-term available-for-sale securities portfolio, which is comprised substantially of U.S. agency and other highly rated debentures and U.S. agency commercial MBS, totaled $14.3 billion at June 30, 2017 as compared to $13.9 billion at March 31, 2017 and $13.2 billion at December 31, 2016. The Bank also held a $0.1 billion long-term U.S. Treasury Note in its trading securities portfolio at June 30, 2017, March 31, 2017 and December 31, 2016.

The Bank's short-term liquidity portfolio, which is comprised substantially of overnight federal funds sold (including loans to other Federal Home Loan Banks) and reverse repurchase agreements, totaled $11.5

billion at June 30, 2017, compared to $9.7 billionatMarch 31, 2017 and $9.6 billion at December 31, 2016.

The Bank's mortgage loans held for portfolio totaled $379 million at June 30, 2017, as compared to $178 millionatMarch 31, 2017 and $124 million at December 31, 2016.

The Bank's retained earnings increased to $890 million at June 30, 2017 from $853 million at March 31, 2017 and $824 million at December 31, 2016. On June 28, 2017, a dividend of $7.3 million was paid to the Bank's shareholders.

Additional selected financial data as of and for the quarter ended June 30, 2017 (and, for comparative purposes, as of March 31, 2017 and December 31, 2016 and for the quarters ended March 31, 2017 and June 30, 2016) is set forth below. Further discussion and analysis regarding the Bank's second quarter results will be included in its Form 10-Q for the quarter ended June 30, 2017 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 840 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 June 30, 2017

(Unaudited, in thousands)

	June 30, 2017		March 31, 2017		December 31, 2016
Selected Statement of Condition Data:
Assets
Investments (1)	$	28,122,619	$	26,040,636	$	25,419,421
Advances	34,132,238		31,058,811		32,506,175
Mortgage loans held for portfolio, net	378,885		178,107		123,961
Cash and other assets	228,755		248,131		162,520
Total assets	$	62,862,497	$	57,525,685	$	58,212,077
Liabilities
Consolidated obligations
Discount notes	$	28,014,878	$	22,783,297	$	26,941,782
Bonds	30,020,333		30,127,957		26,997,487
Total consolidated obligations	58,035,211		52,911,254		53,939,269
Mandatorily redeemable capital stock	23,146		2,865		3,417
Other liabilities	1,666,835		1,670,266		1,452,049
Total liabilities	59,725,192		54,584,385		55,394,735
Capital
Capital stock — putable	2,114,575		1,952,078		1,930,148
Retained earnings	889,544		853,042		823,984
Total accumulated other comprehensive income	133,186		136,180		63,210
Total capital	3,137,305		2,941,300		2,817,342
Total liabilities and capital	$	62,862,497	$	57,525,685	$	58,212,077
Total regulatory capital (2)	$	3,027,265	$	2,807,985	$	2,757,549

	For the		For the		For the		For the		For the
	Quarter Ended		Quarter Ended		Quarter Ended		Six Months Ended		Six Months Ended
	June 30, 2017		March 31, 2017		June 30, 2016		June 30, 2017		June 30, 2016
Selected Statement of Income Data:
Net interest income	$	61,514	$	52,746	$	37,813	$	114,260	$	73,547
Other income (loss)	7,890		8,557		5,393		16,447		(1,703		)
Other expense	20,774		22,260		19,662		43,034		39,092
AHP assessment	4,867		3,905		2,355		8,772		3,277
Net income	$	43,763	$	35,138	$	21,189	$	78,901	$	29,475

(1) Investments consist of interest-bearing deposits, securities purchased under agreements to resell, federal funds sold, loans to other Federal Home Loan Banks, trading securities, available-for-sale securities and held-to-maturity securities.

(2) As of June 30, 2017, March 31, 2017 and December 31, 2016, total regulatory capital represented 4.82 percent, 4.88 percent and 4.74 percent, respectively, of total assets as of those dates.

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