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): October 29, 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))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered

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

Top of the Form

Item 2.02 Results of Operations and Financial Condition.

On October 29, 2019, the Federal Home Loan Bank of Dallas issued a press release disclosing information regarding its financial condition at September 30, 2019 and its results of operations for the quarter and nine months ended September 30, 2019. 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 October 29, 2019 disclosing financial information regarding the quarter and nine months ended September 30, 2019.

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
October 29, 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 October 29, 2019 disclosing financial information regarding the quarter and nine months ended September 30, 2019.

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

October 29, 2019

Contact:

Corporate Communications

Federal Home Loan Bank of Dallas

www.fhlb.com

(214) 441-8445

Federal Home Loan Bank of Dallas

Reports Third Quarter 2019 Operating Results

DALLAS, TEXAS, October 29, 2019 - The Federal Home Loan Bank of Dallas (Bank) today reported net income of $53.1 million for the quarter ended September 30, 2019. In comparison, for the quarters ended June 30, 2019 and September 30, 2018, the Bank reported net income of $54.1 million and $50.1 million, respectively. For the nine months ended September 30, 2019, the Bank reported net income of $165.6 million, as compared to $140.6 million for the nine months ended September 30, 2018.

Total assets at September 30, 2019 were $73.8 billion, compared with $74.5 billion at June 30, 2019 and $72.8 billion at December 31, 2018. The $0.7 billion decrease in total assets for the third quarter was attributable primarily to decreases in the Bank's short-term liquidity portfolio ($1.3 billion) and advances ($0.6 billion), partially offset by increases in the Bank's mortgage loans held for portfolio ($0.6 billion) and long-term investments ($0.5 billion). The $1.0 billion increase in total assets for the nine months ended September 30, 2019 was attributable primarily to increases in the Bank's mortgage loans held for portfolio ($1.4 billion), long-term investments ($1.1 billion) and short-term liquidity portfolio ($0.9 billion), partially offset by a decrease in the Bank's advances ($2.6 billion).

Advances totaled $38.2 billion at September 30, 2019, compared with $38.8 billion at June 30, 2019 and $40.8 billion at December 31, 2018. The Bank's mortgage loans held for portfolio totaled $3.6 billion at September 30, 2019, as compared to $3.0 billion at June 30, 2019 and $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 $1.2 billion, $1.2 billion and $1.5 billion at September 30, 2019, June 30, 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 $17.2 billion at September 30, 2019, as compared to $16.7 billion at June 30, 2019 and $15.8 billion at December 31, 2018. At September 30, 2019, June 30, 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, totaled $13.1 billion at September 30, 2019, compared to $14.4 billion at June 30, 2019 and $12.2 billion at December 31, 2018.

The Bank's retained earnings increased to $1.189 billion at September 30, 2019 from $1.155 billion at June 30, 2019 and $1.081 billion at December 31, 2018. On September 26, 2019, a dividend of $19.2 million was paid to the Bank's shareholders.

Additional selected financial data as of and for the quarter and nine months ended September 30, 2019 (and, for comparative purposes, as of June 30, 2019 and December 31, 2018, and for the quarters ended June 30, 2019 and September 30, 2018 and the nine months ended September 30, 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 September 30, 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 815 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 September 30, 2019

(Unaudited, in thousands)

	September 30, 2019		June 30, 2019		December 31, 2018
Selected Statement of Condition Data:
Assets
Investments (1)	$	31,596,300	$	32,405,827	$	29,551,929
Advances	38,180,593		38,778,599		40,793,813
Mortgage loans held for portfolio, net	3,603,112		3,034,267		2,185,503
Cash and other assets	400,863		299,550		242,045
Total assets	$	73,780,868	$	74,518,243	$	72,773,290
Liabilities
Consolidated obligations
Discount notes	$	33,878,782	$	39,656,798	$	35,731,713
Bonds	33,744,493		29,481,562		31,931,929
Total consolidated obligations	67,623,275		69,138,360		67,663,642
Mandatorily redeemable capital stock	7,106		7,093		6,979
Other liabilities	2,440,239		1,554,725		1,338,413
Total liabilities	70,070,620		70,700,178		69,009,034
Capital
Capital stock — putable	2,478,206		2,582,594		2,554,888
Retained earnings	1,189,261		1,155,367		1,081,367
Total accumulated other comprehensive income	42,781		80,104		128,001
Total capital	3,710,248		3,818,065		3,764,256
Total liabilities and capital	$	73,780,868	$	74,518,243	$	72,773,290
Total regulatory capital (2)	$	3,674,573	$	3,745,054	$	3,643,234

	For the		For the		For the			For the		For the
	Quarter Ended		Quarter Ended		Quarter Ended			Nine Months Ended		Nine Months Ended
	September 30, 2019		June 30, 2019		September 30, 2018			September 30, 2019		September 30, 2018
Selected Statement of Income Data:
Net interest income (3) (4)	$	67,912	$	62,474	$	80,937		$	202,364	$	225,035
Other income (loss) (4)	14,900		22,144		(2,503		)	54,021		196
Other expense	23,803		24,525		22,798			72,393		68,958
AHP assessment	5,905		6,015		5,565			18,414		15,632
Net income	$	53,104	$	54,078	$	50,071		$	165,578	$	140,641

(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 September 30, 2019, June 30, 2019 and December 31, 2018, total regulatory capital represented 4.98 percent, 5.03 percent and 5.01 percent, respectively, of total assets as of those dates.

(3) Net interest income is net of the provision for mortgage 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 September 30, 2019, the quarter ended June 30, 2019 and the nine months ended September 30, 2019, fair value hedge ineffectiveness reduced net interest income by $6.279 million, $15.625 million and $31.244 million, respectively.

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