Federal Home Loan Bank of Dallas Reports Third Quarter 2024 Operating Results Form 8 K

Federal Home Loan Bank of Dallas

Reports Third Quarter 2024 Operating Results

DALLAS, TEXAS, October 29, 2024 - The Federal Home Loan Bank of Dallas (Bank) today reported net income of $184.4 million for the quarter ended September 30, 2024. In comparison, for the quarters ended June 30, 2024 and September 30, 2023, the Bank reported net income of $187.3 million and $247.7 million, respectively. For the nine months ended September 30, 2024, the Bank reported net income of $552.3 million, as compared to $662.0 million for the nine months ended September 30, 2023.

Total assets at September 30, 2024 were $124.9 billion, compared with $126.2 billion at June 30, 2024 and $128.3 billion at December 31, 2023. Average total assets decreased from $157.6 billion and $159.8 billion for the quarter and nine months ended September 30, 2023, respectively, to $125.2 billion and $125.6 billion for the corresponding periods in 2024. The $1.3 billion decrease in total assets during the third quarter of 2024 was primarily attributable to decreases in the Bank's advances ($3.8 billion) and long-term investments ($0.1 billion), partially offset by increases in the Bank's short-term liquidity holdings ($2.5 billion) and mortgage loans held for portfolio ($0.2 billion). The $3.4 billion decrease in total assets during the nine months ended September 30, 2024 was attributable primarily to a decrease in the Bank's advances ($8.6 billion), partially offset by increases in the Bank's short-term liquidity holdings ($3.5 billion), long-term investments ($1.2 billion) and mortgage loans held for portfolio ($0.5 billion).

Advances totaled $71.4 billion at September 30, 2024, compared with $75.2 billion at June 30, 2024 and $80.0 billion at December 31, 2023. The Bank's mortgage loans held for portfolio totaled $5.6 billion at September 30, 2024, as compared to $5.4 billion at June 30, 2024 and $5.1 billion at December 31, 2023.

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 $0.2 billion, $0.2 billion and $0.3 billion at September 30, 2024, June 30, 2024 and December 31, 2023, respectively. 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 $19.0 billion at September 30, 2024, as compared to $19.1 billion at June 30, 2024 and $17.7 billion at December 31, 2023. At September 30, 2024, June 30, 2024 and December 31, 2023, 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 September 30, 2024,

June 30, 2024 and December 31, 2023, the Bank's short-term liquidity holdings totaled $28.1 billion, $25.6 billion and $24.6 billion, respectively.

The Bank's retained earnings increased to $2.743 billion at September 30, 2024 from $2.629 billion at June 30, 2024 and $2.413 billion at December 31, 2023. On September 26, 2024, a dividend of $70.4 million was paid to the Bank's shareholders.

Additional selected financial data as of and for the quarter and nine months ended September 30, 2024 (and, for comparative purposes, as of June 30, 2024 and December 31, 2023, and for the quarters ended June 30, 2024 and September 30, 2023 and the nine months ended September 30, 2023) is set forth below. Further discussion and analysis regarding the Bank's results will be included in its Form 10-Q for the quarter ended September 30, 2024 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 funding solutions, liquidity, 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 Nine Months Ended September 30, 2024

(Unaudited, in thousands)

September 30, 2024	June 30, 2024	December 31, 2023
Selected Statement of Condition Data:
Assets
Investments (1)	$	47,351,165	$	45,042,311	$	42,631,192
Advances	71,357,743	75,225,134	79,951,855
Mortgage loans held for portfolio, net	5,574,177	5,409,439	5,088,642
Cash and other assets	589,008	554,699	592,923
Total assets	$	124,872,093	$	126,231,583	$	128,264,612
Liabilities
Consolidated obligations
Discount notes	$	26,969,170	$	19,009,983	$	8,598,022
Bonds	87,878,910	96,906,629	109,536,207
Total consolidated obligations	114,848,080	115,916,612	118,134,229
Mandatorily redeemable capital stock	184	296	506
Other liabilities	2,799,111	2,867,509	2,870,657
Total liabilities	117,647,375	118,784,417	121,005,392
Capital
Capital stock - putable	4,330,775	4,582,079	4,737,388
Retained earnings	2,742,927	2,628,950	2,412,983
Total accumulated other comprehensive income	151,016	236,137	108,849
Total capital	7,224,718	7,447,166	7,259,220
Total liabilities and capital	$	124,872,093	$	126,231,583	$	128,264,612
Total regulatory capital (2)	$	7,073,886	$	7,211,325	$	7,150,877

For the	For the	For the	For the	For the
Quarter Ended	Quarter Ended	Quarter Ended	Nine Months Ended	Nine Months Ended
September 30, 2024	June 30, 2024	September 30, 2023	September 30, 2024	September 30, 2023
Selected Statement of Income Data:
Net interest income (3)	$	226,553	$	229,087	$	284,851	$	679,138	$	766,520
Other income	18,658	14,616	20,181	43,739	71,486
Other expense	40,324	35,622	29,774	109,252	102,363
AHP assessment	20,489	20,809	27,533	61,367	73,603
Net income	$	184,398	$	187,272	$	247,725	$	552,258	$	662,040

(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, 2024, June 30, 2024 and December 31, 2023, total regulatory capital represented 5.66 percent, 5.71 percent and 5.58 percent, respectively, of total assets as of those dates.

(3) Net interest income is net of the provision (reversal) for credit losses.

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