Dallas Federal Home Loan Bank Reports Second Quarter 2021 Operating Results

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DALLAS–() – The Dallas Federal Home Loan Bank (the bank) today reported net income of $ 28.0 million for the quarter ended June 30, 2021. By comparison, the Bank reported net income for the quarters ended March 31, 2021 and June 30, 2020. profit amounted to USD 47.9 million and USD 67.0 million, respectively. For the six months ended June 30, 2021, the Bank reported net income of $ 75.9 million, compared to $ 118.5 million for the six months ended June 30, 2020.

Total assets at June 30, 2021 were $ 58.6 billion, compared to $ 61.1 billion at March 31, 2021 and $ 64.9 billion at December 31, 2020. The decrease in total assets by USD 2.5 billion in the second quarter was due to a decrease in the Bank’s short-term assets. liquidity stocks ($ 1.7 billion), advances ($ 0.7 billion) and long-term investments ($ 0.1 billion). Decrease in total assets by USD 6.3 billion for the six months ended June 30, 2021, mainly due to a decrease in the Bank’s advances (USD 7.6 billion), long-term investments (USD 0.7 billion) and mortgage loans held for the portfolio (US $ 0.2 billion), in part. offset by an increase in the Bank’s short-term liquidity (USD 2.1 billion).

Advances totaled $ 24.9 billion as of June 30, 2021, compared to $ 25.6 billion as of March 31, 2021 and $ 32.5 billion as of December 31, 2020. The Bank’s mortgage loans as of June 30, 2021 amounted to USD 3.2 billion, compared to USD 3.2 billion as of December 31, 2020. March 31, 2021 and $ 3.4 billion at December 31, 2020.

The carrying value of the portfolio of long-term held-to-maturity securities, which primarily consists of US mortgage backed securities (MBS), was $ 0.7 billion at 30 June 2021, up from $ 0.8 billion at 31 March 2021. and $ 0.9 billion at 31 December 2020. The carrying value of the long-term AFS portfolio, which consists primarily of debt obligations of US agencies and US commercial MBS agencies, was $ 16.3 billion as of June 30, 2021, up from $ 16.3 billion. as of March 31, 2021 and USD 16.8 billion as of December 31, 2020. At June 30, 2021, March 31, 2021 and December 31, 2020, the Bank also held long-term US Treasury bonds in the amount of USD 0.1 billion, classified as trading. …

The Bank’s short-term liquidity cushion usually consists of overnight interest-bearing deposits, sold overnight federal funds, overnight reverse repo agreements, US Treasury bills, US Treasury bills, and, from time to time, may also include funds held in the Federal Reserve. … As of June 30, 2021, March 31, 2021 and December 31, 2020, the Bank’s short-term liquidity reserves amounted to USD 13.1 billion, USD 14.8 billion and USD 11.0 billion, respectively.

The Bank’s retained earnings increased to USD 1.477 billion as of June 30, 2021 from USD 1.452 billion as of March 31, 2021 and USD 1.408 billion as of December 31, 2020. On June 28, 2021, dividends in the amount of USD 3.3 million were paid to the shareholders of the Bank.

Additional selected financial data for the quarter and six months ended June 30, 2021 and for the quarter and six months ended June 30, 2021 (and, by comparison, as of March 31, 2021 and December 31, 2020 and also for the quarters ended March 31, 2021 and June 30). 2020 and six months ended June 30, 2020) are set out below. Further discussion and analysis of the Bank’s results will be incorporated into its Form 10-Q for the quarter ended June 30, 2021, which will be filed with the SEC.

About Dallas Federal Home Loan Bank

The Dallas Federal Home Loan Bank is one of 11 county 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 loans at competitive prices (known as advances). and other loan products for approximately 800 members and associates in Arkansas, Louisiana, Mississippi, New Mexico and Texas. For more information visit the Bank’s website at: fhlb.com

Dallas Federal Home Loan Bank

Selected financial data

As of and for the quarter and six months ended June 30, 2021

(Unaudited, in thousands)

June 30, 2021

March 31, 2021

December 31, 2020

Selected data status report:

Resources

Investment (1)

$

30 152 031

$

25 187 292

$

25 660 696

Achievements

24,922,369

25 621 279

32 478 944

Mortgage loans in portfolio, net

3,206,071

3,206,790

3 422 686

Cash and other property (2)

346688

7,098,415

3 350 200

Total assets

$

58 627 159

$

61 113 776

$

64 912 526

Liabilities

Consolidated liabilities

Discount Notes

$

11 371 181

$

13 336 683

$

22,171,296

Bonds

41 615 443

41,776,784

37 112 721

Total consolidated liabilities

52 986 624

55 113 467

59 284 017

Mandatory redeemable share capital

6 690

6 811

13 864

Other obligations

1 842 805

2,273,704

2,057,760

Total commitment

54 836 119

57 393 982

61 355 641

Capital

Share capital – with the right to transfer

2 092 739

2,008,260

2,101,380

Undestributed profits

1,476,903

1,452,202

1 408 245

Total accumulated other comprehensive income

221 398

259,332

47260

Total capital

3 791 040

3 719 794

3,556,885

Total liabilities and equity

$

58 627 159

$

61 113 776

$

64 912 526

Total Regulatory Capital (3)

$

3,576,332

$

3 467 273

$

3,523,489

For

For

For

For

For

The quarter is over

The quarter is over

The quarter is over

Six months are over

Six months are over

June 30, 2021

March 31, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Selected data of the income statement:

Net interest income (4) (5)

$

51162

$

80 055

$

110,099

$

131 217

$

155 691

Other income (loss)

5 656

(1,576

)

(2 630

)

4080

32760

other expenses

25680

25287

33,074

50967

56742

AHP score

3115

5 319

7441

8 434

13175

Net profit

$

28,023

$

47873

$

66 954

$

75896

$

118,534

(one)

Investments consist of interest-bearing deposits, securities purchased under agreements to resell, sold federal funds, trading securities, securities available for sale and securities held to maturity.

(2)

As of June 30, 2021, March 31, 2021 and December 31, 2020, cash and other assets of the Bank included surplus cash of USD 0.1 billion, USD 6.9 billion and USD 3.1 billion. respectively, which were held by the Federal Reserve System.

(3)

As of June 30, 2021, March 31, 2021 and December 31, 2020, total regulatory capital was 6.10 percent, 5.67 percent and 5.43 percent, respectively, of total assets at those dates.

(4)

Net interest income less provision (recovery) for mortgage loan losses.

(five)

The Bank accounts for hedge ineffectiveness associated with fair value hedges in net interest income in accordance with ASU 2017-12 “Targeted Improvements in Hedge Accounting”. During the quarters ended June 30, 2021, March 31, 2021 and June 30, 2020, the ineffectiveness of the fair value hedge increased (decreased) net interest income by $ (5,757) million, $ 19,464 million and $ 9,423 million, respectively … During the six months ended June 30, 2021 and 2020, the ineffectiveness of the fair value hedge increased (decreased) net interest income by $ 13,707 million and $ 27,467 million, respectively.

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