Federal Home Loan Bank of Dallas Reports First Quarter Operating Results

DALLAS, TEXAS – April 30, 2015 – (RealEstateRama) — The Federal Home Loan Bank of Dallas (Bank) today reported net income of $23.1 million for the quarter ended March 31, 2015. In comparison, for the quarter ended December 31, 2014, the Bank reported net income of $10.8 million. The increase in net income from quarter to quarter was attributable primarily to a favorable change in the Bank’s gains (losses) on derivatives and hedging activities ($7.1 million), gains associated with the sales of investment securities in the first quarter ($8.5 million) and a decline in operating expenses ($1.5 million), offset by a decline in net interest income ($3.4 million) and an increase in the Bank’s Affordable Housing Program assessment ($1.4 million).

Total assets at March 31, 2015 were $36.9 billion, compared with $38.0 billion at December 31, 2014. The $1.1 billion decrease in total assets for the first quarter was attributable primarily to decreases in the Bank’s advances ($1.7 billion) and long-term investment securities portfolio ($0.5 billion), partially offset by an increase in the Bank’s short-term liquidity portfolio ($0.9 billion).

Advances totaled $17.2 billion at March 31, 2015, compared with $18.9 billion at December 31, 2014. During the first quarter of 2015, the Bank’s advances declined due to reduced demand from some of its larger borrowers, which the Bank attributes to an increase in liquidity levels at those institutions.

The Bank’s long-term held-to-maturity securities portfolio, which is comprised substantially of U.S. agency residential mortgage-backed securities (MBS), totaled $4.1 billion at March 31, 2015 as compared to $4.7 billion at December 31, 2014. 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 $6.5 billion at March 31, 2015 as compared to $6.4 billion at December 31, 2014. The Bank’s short-term liquidity portfolio (comprised of non-interest bearing excess cash balances, overnight federal funds sold, reverse repurchase agreements and U.S. Treasury Bills) increased from $7.8 billion at December 31, 2014 to $8.7 billion at March 31, 2015.

During the quarter ended March 31, 2015, the Bank sold approximately $350 million (par value) of U.S. agency residential MBS classified as held-to-maturity (for which a substantial portion of the principal had previously been collected) and approximately $500 million (par value) of U.S. agency debentures classified as available-for-sale. The aggregate gains recognized on the sales of these securities totaled $8.6 million.

The Bank’s retained earnings increased to $721.8 million at March 31, 2015, from $699.8 million at December 31, 2014. On March 31, 2015, a dividend of $1.1 million was paid to the Bank’s shareholders.

Additional selected financial data as of and for the quarter ended March 31, 2015 (and, for comparative purposes, as of and for the quarter ended December 31, 2014) is set forth below. Further discussion and analysis regarding the Bank’s first quarter results will be included in its Form 10-Q for the quarter ended March 31, 2015 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 approximately 900 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico and Texas. For more information, visit the Bank’s website at fhlb.com.

Contact:

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

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