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): February 21, 2019

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 February 21, 2019, the Federal Home Loan Bank of Dallas issued a press release disclosing information regarding its financial condition at December 31, 2018 and its results of operations for the quarter and year ended December 31, 2018. 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 February 21, 2019 disclosing financial information regarding the quarter and year ended December 31, 2018.

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
February 21, 2019	By:	/s/ Tom Lewis
		Name: Tom Lewis
		Title: Executive Vice President and Chief Financial Officer

Exhibit Index

Exhibit No.	Description
99.1	Press release dated February 21, 2019 disclosing financial information regarding the quarter and year ended December 31, 2018.

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

February 21, 2019

Contact:

Corporate Communications

Federal Home Loan Bank of Dallas

www.fhlb.com

(214) 441-8445

Federal Home Loan Bank of Dallas

Reports Fourth Quarter and Full Year 2018 Operating Results

DALLAS, TEXAS, February 21, 2019 - The Federal Home Loan Bank of Dallas (Bank) today reported net income of $58.1 million for the quarter ended December 31, 2018. In comparison, for the quarters ended September 30, 2018 and December 31, 2017, the Bank reported net income of $50.1 million and $31.4 million, respectively. For the year ended December 31, 2018, the Bank reported net income of $198.8 million, as compared to $150.3 million for the year ended December 31, 2017. Net interest income after provision for loan losses for the quarters ended December 31, 2018 and September 30, 2018 and the year ended December 31, 2018 was $85.4 million, $80.9 million and $310.5 million, respectively. In comparison, for the quarter and year ended December 31, 2017, net interest income after provision for loan losses was $60.7 million and $237.4 million, respectively.

The $48.5 million increase in net income for the year ended December 31, 2018, as compared to the year ended December 31, 2017, was attributable to an increase in the Bank's net interest income ($73.1 million) and a decrease in its non-interest expenses ($1.3 million), offset by a decrease in its non-interest income ($20.5 million) and an increase in its AHP assessment ($5.4 million). The increase in net interest income was due in part to a $7.1 billion increase in the Bank's average interest-earning assets. The decrease in non-interest income was primarily due to an unfavorable change in the aggregate net gains (losses) associated with the Bank's derivatives and hedging activities and its trading securities portfolio, as well as lower gains on the sales of investment securities.

Total assets at December 31, 2018 were $72.8 billion, compared with $73.7 billion at September 30, 2018 and $68.5 billion at December 31, 2017. The $0.9 billion decrease in total assets for the fourth quarter was attributable primarily to decreases in the Bank's advances ($1.4 billion) and short-term liquidity portfolio ($0.1 billion), offset by increases in the Bank's mortgage loans held for portfolio ($0.4 billion) and long-term investments ($0.2 billion). The $4.3 billion increase in total assets for the year ended December 31, 2018 was attributable primarily to increases in the Bank's advances ($4.3 billion), long-term investments ($1.0 billion) and mortgage loans held for portfolio ($1.3 billion), partially offset by a decrease in the Bank's short-term liquidity portfolio ($2.3 billion).

Advances totaled $40.8 billion at December 31, 2018, compared with $42.2 billion at September 30, 2018 and $36.5 billion at December 31, 2017. The Bank's mortgage loans held for portfolio totaled $2.2 billion at December 31, 2018, as compared to $1.8 billion at September 30, 2018 and $0.9 billion at December 31, 2017.

The Bank's long-term held-to-maturity securities portfolio, which is comprised substantially of U.S. agency residential mortgage-backed securities (MBS), totaled approximately $1.5 billion, $1.6 billion and $1.9 billion at December 31, 2018, September 30, 2018 and December 31, 2017, respectively. The Bank's long-term available-for-sale securities portfolio, which is comprised substantially of U.S. agency debentures and U.S. agency commercial MBS, totaled $15.8 billion at December 31, 2018, as compared to $15.5 billion at September 30, 2018 and $14.4 billion at December 31, 2017. At December 31, 2018, September 30, 2018 and December 31, 2017, the Bank also held a $0.1 billion long-term U.S. Treasury Note classified as trading.

The Bank's short-term liquidity portfolio, which is comprised substantially of overnight interest-bearing deposits, overnight federal funds sold, overnight reverse repurchase agreements, U.S. Treasury Bills and U.S. Treasury Notes with short remaining terms to maturity, totaled $12.2 billion at December 31, 2018, compared to $12.3 billion at September 30, 2018 and $14.5 billion at December 31, 2017.

The Bank's retained earnings increased to $1.081 billion at December 31, 2018 from $1.042 billion at September 30, 2018 and $942 million at December 31, 2017. On December 27, 2018, a dividend of $18.4 million was paid to the Bank's shareholders.

Additional selected financial data as of and for the quarter and year ended December 31, 2018 (and, for comparative purposes, as of September 30, 2018 and December 31, 2017, and for the quarters ended September 30, 2018 and December 31, 2017 and the year ended December 31, 2017) 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, 2018 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 825 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 and Year Ended December 31, 2018

(Unaudited, in thousands)

	December 31, 2018		September 30, 2018		December 31, 2017
Selected Statement of Condition Data:
Assets
Investments (1)	$	29,551,929	$	29,433,699	$	30,941,464
Advances	40,793,813		42,241,727		36,460,524
Mortgage loans held for portfolio, net	2,185,503		1,795,194		877,852
Cash and other assets	242,045		239,479		244,461
Total assets	$	72,773,290	$	73,710,099	$	68,524,301
Liabilities
Consolidated obligations
Discount notes	$	35,731,713	$	33,996,816	$	32,510,758
Bonds	31,931,929		34,382,344		31,376,858
Total consolidated obligations	67,663,642		68,379,160		63,887,616
Mandatorily redeemable capital stock	6,979		6,877		5,941
Other liabilities	1,338,413		1,393,517		1,150,718
Total liabilities	69,009,034		69,779,554		65,044,275
Capital
Capital stock — putable	2,554,888		2,608,799		2,317,937
Retained earnings	1,081,367		1,041,591		941,763
Total accumulated other comprehensive income	128,001		280,155		220,326
Total capital	3,764,256		3,930,545		3,480,026
Total liabilities and capital	$	72,773,290	$	73,710,099	$	68,524,301
Total regulatory capital (2)	$	3,643,234	$	3,657,267	$	3,265,641

	For the		For the			For the		For the		For the
	Quarter Ended		Quarter Ended			Quarter Ended		Year Ended		Year Ended
	December 31, 2018		September 30, 2018			December 31, 2017		December 31, 2018		December 31, 2017
Selected Statement of Income Data:
Net interest income (3)	$	85,431	$	80,937		$	60,686	$	310,466	$	237,438
Other income (loss)	1,765		(2,503		)	573		1,961		22,483
Other expense	22,597		22,798			26,399		91,555		92,924
AHP assessment	6,465		5,565			3,487		22,097		16,710
Net income	$	58,134	$	50,071		$	31,373	$	198,775	$	150,287

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

(2) As of December 31, 2018, September 30, 2018 and December 31, 2017, total regulatory capital represented 5.01 percent, 4.96 percent and 4.77 percent, respectively, of total assets as of those dates.

(3) Net interest income is net of the provision for loan losses.

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