DALLAS–(BUSINESS WIRE)–Federal Home Loan Bank of Dallas (Bank) today reported net income of $47.2 million for the quarter ended December 31, 2021. In comparison, for the quarters ended September 30, 2021 and the As of December 31, 2020, the Bank reported net income revenue of $41.3 million and $32.5 million, respectively. For the year ended December 31, 2021, the Bank reported net income of $164.4 million, compared to $198.7 million for the year ended December 31, 2020.
Total assets as of December 31, 2021 were $63.5 billion, compared to $60.2 billion as of September 30, 2021 and $64.9 billion as of December 31, 2020. The increase of 3, $3 billion of total assets in the fourth quarter was mainly attributable to the increase in the bank’s short-term liquidity. term cash ($4.2 billion) and mortgages held for the portfolio ($0.2 billion), partially offset by decreases in long-term investments ($0.9 billion) and advances ($0.2 billion). The $1.4 billion decrease in total assets for the year ended December 31, 2021 is primarily due to lower advances from the Bank ($7.9 billion) and long-term investments ( $1.8 billion), partially offset by the increase in the Bank’s short-term liquidity. ($8.2 billion) and mortgages held for the portfolio ($0.1 billion).
Advances totaled $24.6 billion as at December 31, 2021, compared to $24.8 billion as at September 30, 2021 and $32.5 billion as at December 31, 2020. Bank mortgages held for the portfolio totaled 3.5 billion as of December 31, 2021, compared to $3.3 billion as of December 31, 2021. September 30, 2021 and $3.4 billion as of December 31, 2020.
The book value of the Bank’s long-term held-to-maturity securities portfolio, which consists primarily of U.S. agency residential mortgage-backed securities (MBS), totaled $0.6 billion as at December 31. 2021, compared to $0.7 billion as at September 30, 2021. and $0.9 billion as at December 31, 2020. The carrying value of the Bank’s long-term available-for-sale securities portfolio, which mainly consists of U.S. Agencies and U.S. Agency Commercial MBS, totaled $15.3 billion as of December 31, 2021, compared to $16.1 billion as of September 30, 2021 and $16.8 billion as of December 31, 2020. 2021, September 30, 2021 and December 31, 2020, the Bank also held a long-term US Treasury note of $0.1 billion classified as .
The Bank’s short-term liquidity is generally comprised of interest-bearing overnight deposits, sold overnight federal funds, overnight reverse repurchase agreements, U.S. Treasury bills, U.S. Treasury notes and , from time to time, may also include cash held at the Federal Reserve. As at December 31, 2021, September 30, 2021 and December 31, 2020, the Bank’s short-term liquidity totaled $19.2 billion, $15.0 billion and $11.0 billion, respectively.
The Bank’s retained earnings decreased from $1.515 billion at September 30, 2021 to $1.408 billion at December 31, 2020 to $1.558 billion at December 31, 2021. On December 28, 2021, a dividend of $3.6 million dollars was paid to the shareholders of the Bank.
Selected supplemental financial data as at and for the quarter and year ended December 31, 2021 (and, for comparative purposes, September 30, 2021 and December 31, 2020, and for the quarters ended September 30, 2021 and December 31, 2021 2020 and the year ended December 31, 2020) is presented below. Further discussion and analysis regarding the Bank’s results will be included in its Form 10-K for the year ended December 31, 2021 to be filed with the Securities and Exchange Commission.
About 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 established by Congress in 1932. The Bank is a member-owned cooperative that supports housing and community development by providing competitively priced loans (called advances) and other credit products to approximately 800 member 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 at and for the three months and year ended December 31, 2021 (Unaudited, in thousands) |
|||||||||
|
|
December 31, 2021 |
|
September 30, 2021 |
|
December 31, 2020 |
||||
|
Condition declaration data selected: |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||
|
Assets |
|
|
|
|
|
|
|||
|
Investments (1) |
|
$ |
34,653,202 |
|
$ |
31,686,391 |
|
$ |
25,660,696 |
|
Advances |
|
|
24,637,464 |
|
|
24,775,990 |
|
|
32,478,944 |
|
Mortgages held for the portfolio, net |
|
|
3,491,265 |
|
|
3,337,821 |
|
|
3,422,686 |
|
Cash and other assets (2) |
|
|
706,445 |
|
|
402 554 |
|
|
3,350,200 |
|
Total assets |
|
$ |
63,488,376 |
|
$ |
60,202,756 |
|
$ |
64,912,526 |
|
|
|
|
|
|
|
|
|||
|
Passives |
|
|
|
|
|
|
|||
|
Consolidated bonds |
|
|
|
|
|
|
|||
|
Coupons |
|
$ |
11,003,026 |
|
$ |
5,155,955 |
|
$ |
22,171,296 |
|
Obligations |
|
|
44,514,220 |
|
|
49 193 449 |
|
|
37,112,721 |
|
Total consolidated obligations |
|
|
55,517,246 |
|
|
54,349,404 |
|
|
59 284 017 |
|
Compulsory reimbursable share capital |
|
|
6,657 |
|
|
6,653 |
|
|
13,864 |
|
Other liabilities |
|
|
4,030,782 |
|
|
1,983,608 |
|
|
2,057,760 |
|
Total responsibilities |
|
|
59,554,685 |
|
|
56,339,665 |
|
|
61,355,641 |
|
Capital city |
|
|
|
|
|
|
|||
|
Share capital — redeemable |
|
|
2,192,504 |
|
|
2,154,894 |
|
|
2,101,380 |
|
Retained earnings |
|
|
1,558,417 |
|
|
1,514,831 |
|
|
1,408,245 |
|
Accumulated other comprehensive income |
|
|
182,770 |
|
|
193,366 |
|
|
47,260 |
|
total capital |
|
|
3,933,691 |
|
|
3,863,091 |
|
|
3,556,885 |
|
Total liabilities and capital |
|
$ |
63,488,376 |
|
$ |
60,202,756 |
|
$ |
64,912,526 |
|
|
|
|
|
|
|
|
|||
|
Total regulatory capital (3) |
|
$ |
3,757,578 |
|
$ |
3,676,378 |
|
$ |
3,523,489 |
|
|
|
For the |
|
For the |
|
For the |
|
For the |
|
For the |
|||||
|
|
|
Quarter ended |
|
Quarter ended |
|
Quarter ended |
|
Year ended |
|
Year ended |
|||||
|
|
|
December 31, 2021 |
|
September 30, 2021 |
|
December 31, 2020 |
|
December 31, 2021 |
|
December 31, 2020 |
|||||
|
Selected income statement data: |
|
|
|
|
|
|
|
|
|
|
|||||
|
Net interest income (4) (5) |
|
$ |
79,073 |
|
$ |
67,257 |
|
$ |
74,831 |
|
$ |
277,547 |
|
$ |
309,979 |
|
Other income |
|
|
1,563 |
|
|
4,600 |
|
|
107 |
|
|
10,243 |
|
|
32,159 |
|
Other expenses |
|
|
28,170 |
|
|
26,010 |
|
|
38,869 |
|
|
105 147 |
|
|
121,342 |
|
AHP Assessment |
|
|
5,246 |
|
|
4,586 |
|
|
3,607 |
|
|
18,266 |
|
|
22,087 |
|
Net revenue |
|
$ |
47,220 |
|
$ |
41,261 |
|
$ |
32,462 |
|
$ |
164,377 |
|
$ |
198 709 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
(1) |
Investments include interest-bearing deposits, securities purchased under resale agreements, federal funds sold, trading securities, available-for-sale securities and held-to-maturity securities. |
|
(2) |
As at December 31, 2021, September 30, 2021 and December 31, 2020, the Bank’s cash and other assets included excess cash of $0.5 billion, $0.2 billion and $3.1 billion, respectively, which was held at the Federal Reserve. |
|
(3) |
As of December 31, 2021, September 30, 2021 and December 31, 2020, total regulatory capital represented 5.92%, 6.11% and 5.43% of total assets respectively at those dates. |
|
(4) |
Net interest income is net of the allowance (reversal) for mortgage loan losses. |
|
(5) |
The Bank recognizes 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”. During the quarters ended December 31, 2021, September 30, 2021 and December 31, 2020, fair value hedge ineffectiveness increased net interest income by $1.140 million, $8.933 million and $7.856 million. dollars, respectively. During the years ended December 31, 2021 and 2020, the ineffectiveness of the fair value hedge increased (decreased) net interest income by $23.780 million and ($14.982) million, respectively. |
