Federal Home Loan Bank of Dallas Reports Fourth Quarter and Full Year 2021 Operating Results

The 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 December 31, 2020, the Bank reported net income 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, as compared to $198.7 million for the year ended December 31, 2020.

Total assets at December 31, 2021 were $63.5 billion, compared with $60.2 billion at September 30, 2021 and $64.9 billion at December 31, 2020. The $3.3 billion increase in total assets for the fourth quarter was primarily attributable to increases in the Bank's short-term liquidity holdings ($4.2 billion) and mortgage loans held for portfolio ($0.2 billion), partially offset by decreases in the Bank's 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 was attributable primarily to decreases in the Bank's advances ($7.9 billion) and long-term investments ($1.8 billion), partially offset by increases in the Bank's short-term liquidity holdings ($8.2 billion) and mortgage loans held for portfolio ($0.1 billion).

Advances totaled $24.6 billion at December 31, 2021, compared with $24.8 billion at September 30, 2021 and $32.5 billion at December 31, 2020. The Bank's mortgage loans held for portfolio totaled $3.5 billion at December 31, 2021, as compared to $3.3 billion at September 30, 2021 and $3.4 billion at December 31, 2020.

The carrying value of the Bank's long-term held-to-maturity securities portfolio, which is comprised substantially of U.S. agency residential mortgage-backed securities (MBS), totaled $0.6 billion at December 31, 2021 compared to $0.7 billion at September 30, 2021 and $0.9 billion at December 31, 2020. The carrying value of 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 $15.3 billion at December 31, 2021, as compared to $16.1 billion at September 30, 2021 and $16.8 billion at December 31, 2020. At December 31, 2021, September 30, 2021 and December 31, 2020, the Bank also held a $0.1 billion long-term U.S. Treasury Note classified as trading.

The Bank's short-term liquidity holdings are typically comprised of overnight interest-bearing deposits, overnight federal funds sold, 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. At December 31, 2021, September 30, 2021 and December 31, 2020, the Bank's short-term liquidity holdings totaled $19.2 billion, $15.0 billion and $11.0 billion, respectively.

The Bank's retained earnings increased to $1.558 billion at December 31, 2021 from $1.515 billion at September 30, 2021 and $1.408 billion at December 31, 2020. On December 28, 2021, a dividend of $3.6 million was paid to the Bank's shareholders.

Additional selected financial data as of and for the quarter and year ended December 31, 2021 (and, for comparative purposes, as of September 30, 2021 and December 31, 2020, and for the quarters ended September 30, 2021 and December 31, 2020 and the year ended December 31, 2020) 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, 2021 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 800 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, 2021

(Unaudited, in thousands)

 

 

December 31, 2021

 

September 30, 2021

 

December 31, 2020

Selected Statement of Condition Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Investments (1)

 

$

34,653,202

 

$

31,686,391

 

$

25,660,696

Advances

 

 

24,637,464

 

 

24,775,990

 

 

32,478,944

Mortgage loans held for 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

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Consolidated obligations

 

 

 

 

 

 

Discount notes

 

$

11,003,026

 

$

5,155,955

 

$

22,171,296

Bonds

 

 

44,514,220

 

 

49,193,449

 

 

37,112,721

Total consolidated obligations

 

 

55,517,246

 

 

54,349,404

 

 

59,284,017

Mandatorily redeemable capital stock

 

 

6,657

 

 

6,653

 

 

13,864

Other liabilities

 

 

4,030,782

 

 

1,983,608

 

 

2,057,760

Total liabilities

 

 

59,554,685

 

 

56,339,665

 

 

61,355,641

Capital

 

 

 

 

 

 

Capital stock — putable

 

 

2,192,504

 

 

2,154,894

 

 

2,101,380

Retained earnings

 

 

1,558,417

 

 

1,514,831

 

 

1,408,245

Total 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 Statement of Income 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 expense

 

 

28,170

 

 

26,010

 

 

38,869

 

 

105,147

 

 

121,342

AHP assessment

 

 

5,246

 

 

4,586

 

 

3,607

 

 

18,266

 

 

22,087

Net income

 

$

47,220

 

$

41,261

 

$

32,462

 

$

164,377

 

$

198,709

 

 

 

 

 

 

 

 

 

 

 

(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)

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, that 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 percent, 6.11 percent and 5.43 percent, respectively, of total assets as of those dates.

(4)

Net interest income is net of the provision (reversal) for mortgage loan losses.

(5)

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." 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, respectively. During the years ended December 31, 2021 and 2020, fair value hedge ineffectiveness increased (reduced) net interest income by $23.780 million and $(14.982) million, respectively.

 

@fhlbdallas reports its fourth quarter and full year 2021 operating results.

Contacts

Corporate Communications

Federal Home Loan Bank of Dallas

fhlb.com

(214) 441-8445

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