DALLAS, Oct. 29, 2013 (GLOBE NEWSWIRE) -- The Federal Home Loan Bank of Dallas (Bank) today reported net income of $29.5 million for the quarter ended September 30, 2013. For the nine months ended September 30, 2013, the Bank reported net income of $69.7 million.
Total assets at September 30, 2013 were $31.3 billion, compared with $32.7 billion at June 30, 2013and$35.8 billion at December 31, 2012. The $1.4 billion decrease in total assets for the third quarter was attributable primarily to a $1.8 billion decline in the Bank's advances offset in part by a $0.3 billion increase in its long-term investment securities portfolio. For the nine-month period ended September 30, 2013, the $4.5 billion decrease in total assets was largely attributable to declines in the Bank's short-term liquidity portfolio ($2.3 billion), advances ($1.8 billion) and long-term investment securities portfolio ($0.3 billion).
Advances totaled $16.6 billion at September 30, 2013, compared with $18.4 billion at both June 30, 2013 and December 31, 2012. The Bank's lending activities generally remained subdued during the first nine months of the year due largely to high deposit levels and weak demand for loans at member institutions.
The Bank's long-term held-to-maturity securities portfolio, which is comprised substantially of U.S. agency mortgage-backed securities (MBS), totaled $5.2 billion at September 30, 2013, compared with $4.9 billion at June 30, 2013 and$5.2 billion at December 31, 2012. The unpaid principal balance of the Bank's investments in non-agency (private-label) residential MBS (RMBS), all of which are classified as held-to-maturity, totaled $220.6 million at September 30, 2013, compared with $232.6 million at June 30, 2013 and $255.6 million at December 31, 2012. The Bank's long-term available-for-sale securities portfolio, which is comprised entirely of U.S. agency and other highly rated debentures, totaled $5.5 billion at September 30, 2013, compared with $5.5 billion at June 30, 2013 and $5.8 billion at December 31, 2012. The Bank's short-term liquidity portfolio (comprised of non-interest bearing excess cash balances, overnight federal funds sold, overnight reverse repurchase agreements and U.S. Treasury Bills) totaled $3.8 billion at September 30, 2013, compared with $3.6 billion at June 30, 2013 and $6.1 billion at December 31, 2012.
The Bank's retained earnings increased to $638.4 million at September 30, 2013, from $609.9 million at June 30, 2013 and $571.9 million at December 31, 2012. On September 30, 2013, a dividend of $1.0 million was paid to the Bank's shareholders. Accumulated other comprehensive loss attributable to the non-credit portion of previous other-than-temporary impairment losses on the Bank's non-agency RMBS holdings declined from $37.3 million at June 30, 2013 and $41.4 million at December 31, 2012 to $35.3 million at September 30, 2013. Accumulated other comprehensive income (loss) attributable to net unrealized gains (losses) on the Bank's available-for-sale securities portfolio totaled ($2.8 million), $3.0 million and $22.5 million as of September 30, 2013, June 30, 2013 and December 31, 2012, respectively.
Additional selected financial data as of and for the quarter and nine months ended September 30, 2013 is set forth below. Further discussion and analysis regarding the Bank's third quarter and year-to-date results will be included in its Form 10-Q for the quarterly period ended September 30, 2013 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 .
| Federal Home Loan Bank of Dallas | |||
| Selected Financial Data | |||
| As of and For the Three and Nine Months Ended September 30, 2013 | |||
| (Unaudited, in thousands) | |||
| September 30, 2013 | June 30, 2013 | December 31, 2012 | |
| Selected Statement of Condition Data: | |||
| Assets | |||
| Investments (1) | $ 13,584,875 | $ 12,216,642 | $ 16,198,823 |
| Advances | 16,634,235 | 18,354,152 | 18,394,797 |
| Mortgage loans held for portfolio, net | 96,263 | 104,378 | 121,478 |
| Cash and other assets | 1,004,451 | 2,008,181 | 1,040,231 |
| Total assets | $ 31,319,824 | $ 32,683,353 | $ 35,755,329 |
| Liabilities | |||
| Consolidated obligations | |||
| Discount notes | $ 6,513,829 | $ 7,569,453 | $ 6,984,378 |
| Bonds | 22,041,996 | 22,164,449 | 25,697,936 |
| Total consolidated obligations | 28,555,825 | 29,733,902 | 32,682,314 |
| Mandatorily redeemable capital stock | 30,086 | 4,229 | 4,504 |
| Other liabilities | 992,993 | 1,212,408 | 1,297,877 |
| Total liabilities | 29,578,904 | 30,950,539 | 33,984,695 |
| Capital | |||
| Capital stock — putable | 1,140,171 | 1,156,781 | 1,216,986 |
| Retained earnings | 638,406 | 609,901 | 571,893 |
| Total accumulated other comprehensive income (loss) | (37,657) | (33,868) | (18,245) |
| Total capital | 1,740,920 | 1,732,814 | 1,770,634 |
| Total liabilities and capital | $ 31,319,824 | $ 32,683,353 | $ 35,755,329 |
| Total regulatory capital (2) | $ 1,808,663 | $ 1,770,911 | $ 1,793,383 |
| For the Three | For the Nine | ||
| Months Ended | Months Ended | ||
| September 30, 2013 | September 30, 2013 | ||
| Selected Statement of Income Data: | |||
| Net interest income | $ 42,359 | $ 113,674 | |
| Other income | 7,559 | 16,271 | |
| Other expense | 17,104 | 52,462 | |
| AHP assessment | 3,282 | 7,750 | |
| Net income | $ 29,532 | $ 69,733 | |
| (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, 2013, June 30, 2013 and December 31, 2012, total regulatory capital represented 5.77 percent, 5.42 percent and 5.02 percent, respectively, of total assets as of those dates. | |||
| AVERAGE BALANCE SHEET, INTEREST RATES AND INTEREST DIFFERENTIAL | ||||||
| (Unaudited) | ||||||
| Nine Months Ended September 30, | ||||||
| 2013 | 2012 | |||||
| Average | Interest/ | Average | Average | Interest/ | Average | |
| Balance | Dividends | Rate | Balance | Dividends | Rate | |
| Assets | (dollars in thousands) | |||||
| Interest-bearing bank balances | $ 13,187 | $ 25 | .25% | $ 10,002 | $ 15 | 0.20% |
| Investment Securities: | ||||||
| Taxable | 505,618 | 7,740 | 2.04 | 562,527 | 11,087 | 2.63 |
| Nontaxable (1) | 374,165 | 14,437 | 5.14 | 364,718 | 14,536 | 5.31 |
| Loans (1) (2) | 1,231,371 | 38,018 | 4.12 | 1,052,934 | 37,155 | 4.71 |
| Total interest-earning assets | 2,124,341 | 60,220 | 3.78 | 1,990,181 | 62,793 | 4.21 |
| Allowance for loan losses | (19,398) | (17,792) | ||||
| Net interest-earning assets | 2,104,943 | 1,972,389 | ||||
| Cash and due from banks | 29,023 | 27,107 | ||||
| Premises and equipment, net | 24,468 | 22,852 | ||||
| Other assets | 35,790 | 31,185 | ||||
| $ 2,194,224 | $ 2,053,533 | |||||
| Liabilities and Stockholders' Equity | ||||||
| Savings, NOW & money market deposits | $ 919,156 | 1,789 | .26 | $ 831,363 | 2,731 | .44 |
| Time deposits | 249,735 | 3,729 | 2.00 | 269,994 | 4,384 | 2.17 |
| Total interest-bearing deposits | 1,168,891 | 5,518 | .63 | 1,101,357 | 7,115 | .86 |
| Short-term borrowings | 91,305 | 222 | .33 | 66,246 | 175 | .35 |
| Long-term debt | 160,136 | 3,219 | 2.69 | 207,929 | 5,363 | 3.45 |
| Total interest-bearing liabilities | 1,420,332 | 8,959 | .84 | 1,375,532 | 12,653 | 1.23 |
| Checking deposits | 553,805 | 458,840 | ||||
| Other liabilities | 17,039 | 21,246 | ||||
| 1,991,176 | 1,855,618 | |||||
| Stockholders' equity | 203,048 | 197,915 | ||||
| $ 2,194,224 | $ 2,053,533 | |||||
| Net interest income (1) | $ 51,261 | $ 50,140 | ||||
| Net interest spread (1) | 2.94% | 2.98% | ||||
| Net interest margin (1) | 3.22% | 3.36% | ||||
| (1) Tax-equivalent basis. Interest income on a tax-equivalent basis includes the additional amount of interest income that would have been earned if the Corporation's investment in tax-exempt loans and investment securities had been made in loans and investment securities subject to Federal income taxes yielding the same after-tax income. The tax-equivalent amount of $1.00 of nontaxable income was $1.52 in each period presented based on a Federal income tax rate of 34%. | ||||||
| (2) For the purpose of these computations, nonaccruing loans are included in the daily average loan amounts outstanding. | ||||||
Forward Looking Information
This earnings release contains various "forward-looking statements" within the meaning of that term as set forth in Rule 175 of the Securities Act of 1933 and Rule 3b-6 of the Securities Exchange Act of 1934. Such statements are generally contained in sentences including the words "may" or "expect" or "could" or "should" or "would" or "believe". The Corporation cautions that these forward-looking statements are subject to numerous assumptions, risks and uncertainties, and therefore actual results could differ materially from those contemplated by the forward-looking statements. In addition, the Corporation assumes no duty to update forward-looking statements.
For more detailed financial information please see the Corporation's quarterly report on Form 10-Q for the quarter ended September 30, 2013. The Form 10-Q will be available through the Bank's website at www.fnbli.com on or about November 12, 2013, after it is electronically filed with the Securities and Exchange Commission ("SEC"). Our SEC filings are also available on the SEC's website at www.sec.gov . You may also read and copy any document we file with the SEC at the SEC's public reference room at 100 F Street, N.E., Room 1580, Washington, DC 20549. You should call 1-800-SEC-0330 for more information on the public reference room.
Corporate Communications Federal Home Loan Bank of Dallas www.fhlb.com (214) 441-8445
