Federal Home Loan Bank of Dallas Reports Fourth Quarter and Full Year 2023 Operating Results

The Federal Home Loan Bank of Dallas (Bank) today reported net income of $212.4 million for the quarter ended December 31, 2023. In comparison, for the quarters ended September 30, 2023 and December 31, 2022, the Bank reported net income of $247.7 million and $115.9 million, respectively. For the year ended December 31, 2023, the Bank reported net income of $874.5 million, as compared to $317.2 million for the year ended December 31, 2022.

Total assets at December 31, 2023 were $128.3 billion, compared with $147.6 billion at September 30, 2023 and $114.3 billion at December 31, 2022. Average total assets increased from $100.9 billion and $76.8 billion for the quarter and year ended December 31, 2022, respectively, to $138.6 billion and $154.4 billion for the corresponding periods in 2023. The $19.3 billion decrease in total assets during the fourth quarter of 2023 was primarily attributable to decreases in the Bank's advances ($11.3 billion) and short-term liquidity holdings ($9.1 billion), partially offset by an increase in the Bank's long-term investments ($1.1 billion). The $14.0 billion increase in total assets during the year ended December 31, 2023 was attributable primarily to increases in the Bank's advances ($11.1 billion), long-term investments ($2.6 billion) and mortgage loans held for portfolio ($0.7 billion), partially offset by a decrease in the Bank's short-term liquidity holdings ($0.5 billion).

Advances totaled $80.0 billion at December 31, 2023, compared with $91.3 billion at September 30, 2023 and $68.9 billion at December 31, 2022. The Bank's mortgage loans held for portfolio totaled $5.1 billion at December 31, 2023, as compared to $5.0 billion at September 30, 2023 and $4.4 billion at December 31, 2022.

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 $0.3 billion at December 31, 2023, September 30, 2023 and December 31, 2022. 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 $17.7 billion at December 31, 2023, as compared to $16.6 billion at September 30, 2023 and $15.1 billion at December 31, 2022. At December 31, 2023, September 30, 2023 and December 31, 2022, 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, 2023, September 30, 2023 and December 31, 2022, the Bank's short-term liquidity holdings totaled $24.6 billion, $33.7 billion and $25.1 billion, respectively.

The Bank's retained earnings increased to $2.413 billion at December 31, 2023 from $2.289 billion at September 30, 2023 and $1.834 billion at December 31, 2022. On December 28, 2023, a dividend of $88.3 million was paid to the Bank's shareholders.

For the year ended December 31, 2023, the Bank set aside $97.2 million for its Affordable Housing Program (AHP). In comparison, the Bank set aside $35.3 million for its AHP during the year ended December 31, 2022.

Additional selected financial data as of and for the quarter and year ended December 31, 2023 (and, for comparative purposes, as of September 30, 2023 and December 31, 2022, and for the quarters ended September 30, 2023 and December 31, 2022 and the year ended December 31, 2022) 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, 2023 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.

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