The Federal Home Loan Bank of Dallas (Bank) today reported net income of $35.1 million for the quarter ended March 31, 2017. In comparison, for the quarter ended December 31, 2016, the Bank reported net income of $28.8 million.

The increase in net income from quarter to quarter was attributable primarily to increases in the Bank's net interest income ($5.9 million), aggregate net gains associated with the Bank's derivatives and hedging activities and its trading securities portfolio ($0.9 million) and gains on sales of available-for-sale securities ($0.7 million), offset by increases in non-interest expenses ($0.4 million) and Affordable Housing Program assessments ($0.7 million).

Total assets at March 31, 2017 were $57.5 billion, compared with $58.2 billion at December 31, 2016. The $0.7 billion decrease in total assets for the first quarter was attributable primarily to a decrease in the Bank's advances ($1.4 billion) offset by an increase in its long-term investments ($0.6 billion). Advances totaled $31.1 billion at March 31, 2017, compared with $32.5 billion at December 31, 2016.

The Bank's long-term held-to-maturity securities portfolio, which is comprised substantially of U.S. agency residential mortgage-backed securities (MBS), totaled $2.4 billion at March 31, 2017 as compared to $2.5 billion at December 31, 2016. The Bank's long-term available-for-sale securities portfolio, which is comprised substantially of U.S. agency and other highly rated debentures and U.S. agency commercial MBS, totaled $13.9 billion at March 31, 2017 as compared to $13.2 billion at December 31, 2016. The Bank also held a $0.1 billion long-term U.S. Treasury Note in its trading securities portfolio at both March 31, 2017 and December 31, 2016.

The Bank's short-term liquidity portfolio, which is comprised substantially of overnight federal funds sold (including loans to other Federal Home Loan Banks) and reverse repurchase agreements, totaled $9.7 billion at March 31, 2017, compared to $9.6 billion at December 31, 2016.

The Bank's retained earnings increased to $853.0 million at March 31, 2017 from $824.0 million at December 31, 2016. On March 29, 2017, a dividend of $6.1 million was paid to the Bank's shareholders.

Additional selected financial data as of and for the quarter ended March 31, 2017 (and, for comparative purposes, as of and for the quarter ended December 31, 2016) is set forth below. Further discussion and analysis regarding the Bank's first quarter results will be included in its Form 10-Q for the quarter ended March 31, 2017 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 850 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 Ended March 31, 2017 (Unaudited, in thousands)         March 31, 2017 December 31, 2016 Selected Statement of Condition Data:   Assets Investments (1) $ 26,040,636 $ 25,419,421 Advances 31,058,811 32,506,175 Mortgage loans held for portfolio, net 178,107 123,961 Cash and other assets   248,131   162,520 Total assets $ 57,525,685 $ 58,212,077   Liabilities Consolidated obligations Discount notes $ 22,783,297 $ 26,941,782 Bonds   30,127,957   26,997,487 Total consolidated obligations 52,911,254 53,939,269 Mandatorily redeemable capital stock 2,865 3,417 Other liabilities   1,670,266   1,452,049 Total liabilities   54,584,385   55,394,735 Capital Capital stock — putable 1,952,078 1,930,148 Retained earnings 853,042 823,984 Total accumulated other comprehensive income   136,180   63,210 Total capital   2,941,300   2,817,342 Total liabilities and capital $ 57,525,685 $ 58,212,077   Total regulatory capital (2) $ 2,807,985 $ 2,757,549     For the Quarter Ended For the Quarter Ended March 31, 2017 December 31, 2016 Selected Statement of Income Data:   Net interest income $ 52,746 $ 46,815 Other income 8,557 7,122 Other expense 22,260 21,882 AHP assessment   3,905   3,206 Net income $ 35,138 $ 28,849   (1)   Investments consist of interest-bearing deposits, securities purchased under agreements to resell, federal funds sold, loans to other Federal Home Loan Banks, trading securities, available-for-sale securities and held-to-maturity securities. (2) As of March 31, 2017 and December 31, 2016, total regulatory capital represented 4.88 percent and 4.74 percent, respectively, of total assets as of those dates.  

Federal Home Loan Bank of DallasCorporate Communications, 214-441-8445fhlb.com