EX-99.1 2 earningsreleaseq12019.htm PRESS RELEASE DATED APRIL 29, 2019 Exhibit

Exhibit 99.1
FOR IMMEDIATE RELEASE

April 29, 2019

Contact:

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

Federal Home Loan Bank of Dallas
Reports First Quarter 2019 Operating Results

DALLAS, TEXAS, April 29, 2019 - The Federal Home Loan Bank of Dallas (Bank) today reported net income of $58.4 million for the quarter ended March 31, 2019. In comparison, for the quarters ended December 31, 2018 and March 31, 2018, the Bank reported net income of $58.1 million and $41.7 million, respectively.

Total assets at March 31, 2019 were $69.0 billion, compared with $72.8 billion at December 31, 2018. The $3.8 billion decrease in total assets for the first quarter was attributable primarily to a decrease in the Bank's advances ($4.7 billion), offset by increases in the Bank's mortgage loans held for portfolio ($0.4 billion), long-term investments ($0.2 billion) and short-term liquidity portfolio ($0.2 billion).

Advances totaled $36.1 billion at March 31, 2019, compared with $40.8 billion at December 31, 2018. The Bank's mortgage loans held for portfolio totaled $2.6 billion at March 31, 2019, as compared to $2.2 billion at December 31, 2018.

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 $1.4 billion and $1.5 billion at March 31, 2019 and December 31, 2018, 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 $16.1 billion at March 31, 2019, as compared to $15.8 billion at December 31, 2018. At March 31, 2019 and December 31, 2018, 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 $12.4 billion at March 31, 2019, compared to $12.2 billion at December 31, 2018.

The Bank's retained earnings increased to $1.121 billion at March 31, 2019 from $1.081 billion at December 31, 2018. On March 27, 2019, a dividend of $19.1 million was paid to the Bank's shareholders.

Additional selected financial data as of and for the quarter ended March 31, 2019 (and, for comparative purposes, as of December 31, 2018, and for the quarters ended December 31, 2018 and March 31, 2018) is


set forth below. Further discussion and analysis regarding the Bank's results will be included in its Form 10-Q for the quarter ended March 31, 2019 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 820 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 March 31, 2019
(Unaudited, in thousands)
 
 
March 31, 2019
 
December 31, 2018
Selected Statement of Condition Data:
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
Investments (1)
 
$
30,040,987

 
$
29,551,929

Advances
 
36,096,595

 
40,793,813

Mortgage loans held for portfolio, net
 
2,594,412

 
2,185,503

Cash and other assets
 
305,498

 
242,045

Total assets
 
$
69,037,492

 
$
72,773,290

 
 
 
 
 
Liabilities
 
 
 
 
Consolidated obligations
 
 
 
 
Discount notes
 
$
37,369,065

 
$
35,731,713

Bonds
 
26,746,361

 
31,931,929

Total consolidated obligations
 
64,115,426

 
67,663,642

Mandatorily redeemable capital stock
 
7,753

 
6,979

Other liabilities
 
1,202,919

 
1,338,413

Total liabilities
 
65,326,098

 
69,009,034

Capital
 
 
 
 
Capital stock — putable
 
2,431,577

 
2,554,888

Retained earnings
 
1,120,615

 
1,081,367

Total accumulated other comprehensive income
 
159,202

 
128,001

Total capital
 
3,711,394

 
3,764,256

Total liabilities and capital
 
$
69,037,492

 
$
72,773,290

 
 
 
 
 
Total regulatory capital (2)
 
$
3,559,945

 
$
3,643,234


 
 
For the
 
For the
 
For the
 
 
Quarter Ended
 
Quarter Ended
 
Quarter Ended
 
 
March 31, 2019
 
December 31, 2018
 
March 31, 2018
Selected Statement of Income Data:
 
 
 
 
 
 
Net interest income (3) (4)
 
$
71,978

 
$
85,431

 
$
68,093

Other income (loss) (4)
 
16,977

 
1,765

 
2,274

Other expense
 
24,065

 
22,597

 
23,991

AHP assessment
 
6,494

 
6,465

 
4,640

Net income
 
$
58,396

 
$
58,134

 
$
41,736


(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 March 31, 2019 and December 31, 2018, total regulatory capital represented 5.16 percent and 5.01 percent, respectively, of total assets as of those dates.
(3)
Net interest income is net of the provision for loan losses.
(4)
Beginning January 1, 2019, the Bank records hedge ineffectiveness associated with fair value hedging relationships in net interest income in accordance with the provisions of ASU 2017-12, "Targeted Improvements to Accounting for Hedging Activities." Prior to January 1, 2019, these amounts were recorded in other income (loss). During the quarter ended March 31, 2019, fair value hedge ineffectiveness reduced net interest income by $9.340 million.
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