0001331757-20-000004.txt : 20200220 0001331757-20-000004.hdr.sgml : 20200220 20200220135325 ACCESSION NUMBER: 0001331757-20-000004 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20200220 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20200220 DATE AS OF CHANGE: 20200220 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Federal Home Loan Bank of Dallas CENTRAL INDEX KEY: 0001331757 STANDARD INDUSTRIAL CLASSIFICATION: FEDERAL & FEDERALLY-SPONSORED CREDIT AGENCIES [6111] IRS NUMBER: 716013989 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-51405 FILM NUMBER: 20634042 BUSINESS ADDRESS: STREET 1: 8500 FREEPORT PARKWAY SOUTH STREET 2: SUITE 100 CITY: IRVING STATE: TX ZIP: 75063 BUSINESS PHONE: 214-441-8500 MAIL ADDRESS: STREET 1: 8500 FREEPORT PARKWAY SOUTH STREET 2: SUITE 100 CITY: IRVING STATE: TX ZIP: 75063 8-K 1 a8-kearningsreleaseq42019.htm 8-K Document
 
 
 
 
 
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 20, 2020
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 February 20, 2020, the Federal Home Loan Bank of Dallas issued a press release disclosing information regarding its financial condition at December 31, 2019 and its results of operations for the quarter and year ended December 31, 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

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 20, 2020
 
By:
 
/s/ Tom Lewis
 
 
 
 
 
 
 
 
 
Name: Tom Lewis
 
 
 
 
Title: Executive Vice President and Chief Financial Officer




Exhibit Index


EX-99.1 2 earningsreleaseq42019.htm PRESS RELEASE DATED FEBRUARY 20, 2020 Exhibit

Exhibit 99.1
FOR IMMEDIATE RELEASE

February 20, 2020

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 2019 Operating Results

DALLAS, TEXAS, February 20, 2020 - The Federal Home Loan Bank of Dallas (Bank) today reported net income of $61.7 million for the quarter ended December 31, 2019. In comparison, for the quarters ended September 30, 2019 and December 31, 2018, the Bank reported net income of $53.1 million and $58.1 million, respectively. For the year ended December 31, 2019, the Bank reported net income of $227.3 million, as compared to $198.8 million for the year ended December 31, 2018.

Total assets at December 31, 2019 were $75.4 billion, compared with $73.8 billion at September 30, 2019 and $72.8 billion at December 31, 2018. The $1.6 billion increase in total assets for the fourth quarter was attributable primarily to increases in the Bank's short-term liquidity portfolio ($2.7 billion) and mortgage loans held for portfolio ($0.5 billion), partially offset by decreases in the Bank's advances ($1.1 billion) and long-term investments ($0.4 billion). The $2.6 billion increase in total assets for the year ended December 31, 2019 was attributable primarily to increases in the Bank's short-term liquidity portfolio ($3.6 billion), mortgage loans held for portfolio ($1.9 billion) and long-term investments ($0.7 billion), partially offset by a decrease in the Bank's advances ($3.7 billion).

Advances totaled $37.1 billion at December 31, 2019, compared with $38.2 billion at September 30, 2019 and $40.8 billion at December 31, 2018. The Bank's mortgage loans held for portfolio totaled $4.1 billion at December 31, 2019, as compared to $3.6 billion at September 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 December 31, 2019, September 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 $16.8 billion at December 31, 2019, as compared to $17.2 billion at September 30, 2019 and $15.8 billion at December 31, 2018. At December 31, 2019, September 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 $15.8 billion at December 31, 2019, compared to $13.1 billion at September 30, 2019 and $12.2 billion at December 31, 2018.



The Bank's retained earnings increased to $1.233 billion at December 31, 2019 from $1.189 billion at September 30, 2019 and $1.081 billion at December 31, 2018. On December 30, 2019, a dividend of $18.3 million was paid to the Bank's shareholders.

Additional selected financial data as of and for the quarter and year ended December 31, 2019 (and, for comparative purposes, as of September 30, 2019 and December 31, 2018, and for the quarters ended September 30, 2019 and December 31, 2018 and the year ended December 31, 2018) 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, 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 805 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, 2019
(Unaudited, in thousands)
 
 
December 31, 2019
 
September 30, 2019
 
December 31, 2018
Selected Statement of Condition Data:
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
Investments (1)
 
$
33,918,055

 
$
31,596,300

 
$
29,551,929

Advances
 
37,117,455

 
38,180,593

 
40,793,813

Mortgage loans held for portfolio, net
 
4,075,464

 
3,603,112

 
2,185,503

Cash and other assets
 
270,631

 
400,863

 
242,045

Total assets
 
$
75,381,605

 
$
73,780,868

 
$
72,773,290

 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
Consolidated obligations
 
 
 
 
 
 
Discount notes
 
$
34,327,886

 
$
33,878,782

 
$
35,731,713

Bonds
 
35,745,827

 
33,744,493

 
31,931,929

Total consolidated obligations
 
70,073,713

 
67,623,275

 
67,663,642

Mandatorily redeemable capital stock
 
7,140

 
7,106

 
6,979

Other liabilities
 
1,502,784

 
2,440,239

 
1,338,413

Total liabilities
 
71,583,637

 
70,070,620

 
69,009,034

Capital
 
 
 
 
 
 
Capital stock — putable
 
2,466,242

 
2,478,206

 
2,554,888

Retained earnings
 
1,232,677

 
1,189,261

 
1,081,367

Total accumulated other comprehensive income
 
99,049

 
42,781

 
128,001

Total capital
 
3,797,968

 
3,710,248

 
3,764,256

Total liabilities and capital
 
$
75,381,605

 
$
73,780,868

 
$
72,773,290

 
 
 
 
 
 
 
Total regulatory capital (2)
 
$
3,706,059

 
$
3,674,573

 
$
3,643,234


 
 
For the
 
For the
 
For the
 
For the
 
For the
 
 
Quarter Ended
 
Quarter Ended
 
Quarter Ended
 
Year Ended
 
Year Ended
 
 
December 31, 2019
 
September 30, 2019
 
December 31, 2018
 
December 31, 2019
 
December 31, 2018
Selected Statement of Income Data:
 
 
 
 
 
 
 
 
 
 
Net interest income (3) (4)
 
$
90,811

 
$
67,912

 
$
85,431

 
$
293,175

 
$
310,466

Other income (loss) (4)
 
2,299

 
14,900

 
1,765

 
56,320

 
1,961

Other expense
 
24,572

 
23,803

 
22,597

 
96,965

 
91,555

AHP assessment
 
6,858

 
5,905

 
6,465

 
25,272

 
22,097

Net income
 
$
61,680

 
$
53,104

 
$
58,134

 
$
227,258

 
$
198,775


(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, 2019, September 30, 2019 and December 31, 2018, total regulatory capital represented 4.92 percent, 4.98 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 December 31, 2019, the quarter ended September 30, 2019 and the year ended December 31, 2019, fair value hedge ineffectiveness increased (reduced) net interest income by $13.335 million, $(6.279) million and $(17.909) million, respectively.
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