DALLAS, Oct. 28, 2010 (GLOBE NEWSWIRE) -- The Federal Home Loan Bank of Dallas (Bank) today reported net income of $27.4 million for the quarter ended September 30, 2010. For the nine months ended September 30, 2010, the Bank reported net income of $82.4 million.
Total assets at September 30, 2010 were $51.6 billion, compared with $57.1 billion at June 30, 2010 and $65.1 billion at December 31, 2009. The decreases in total assets for the third quarter and year-to-date period ($5.5 billion and $13.5 billion, respectively) were attributable primarily to declines in the Bank's advances ($14.2 billion and $20.0 billion, respectively) and its long-term held-to-maturity securities portfolio ($0.8 billion and $2.1 billion, respectively), which were partially offset by increases in the Bank's short-term liquidity portfolio ($9.7 billion and $8.9 billion, respectively).
Advances were $27.3 billion at September 30, 2010, compared with $41.5 billion at June 30, 2010 and $47.3 billion at December 31, 2009. The quarterly and year-to-date reductions in advances were driven in large part by decreases in advances outstanding to the Bank's two largest borrowers. During the third quarter, advances outstanding to those two borrowers decreased by $13.8 billion, including $12.3 billion of prepaid advances; during the year-to-date period, advances outstanding to these borrowers decreased by $16.8 billion. At September 30, 2010, advances outstanding to the Bank's two largest borrowers totaled $7.5 billion.
Due to principal repayments on mortgage-backed securities, the Bank's held-to-maturity securities portfolio declined from $10.1 billion at June 30, 2010 and $11.4 billion at December 31, 2009 to $9.3 billion at September 30, 2010. The Bank's short-term liquidity portfolio (comprised of non-interest bearing excess cash balances, overnight federal funds sold and, as of September 30, 2010, U.S. Treasury Bills) increased from $4.9 billion at June 30, 2010 and $5.7 billion at December 31, 2009 to $14.6 billion at September 30, 2010. The increase in the Bank's short-term liquidity portfolio during the third quarter was due in large part to the reinvestment of the proceeds from $10.3 billion of advances prepaid in late September.
The Bank's operating results for the quarter and nine months ended September 30, 2010 included credit-related other-than-temporary impairment charges of $0.4 million and $2.1 million, respectively, on certain of its investments in non-agency (private-label) residential mortgage-backed securities (RMBS). The unpaid principal balance of the Bank's non-agency RMBS holdings, all of which are classified as held-to-maturity, totaled $431.5 million at September 30, 2010, compared with $460.4 million at June 30, 2010 and $515.4 million at December 31, 2009.
The Bank's retained earnings increased to $431.9 million at September 30, 2010, from $406.6 million at June 30, 2010 and $356.3 million at December 31, 2009. Accumulated other comprehensive loss attributable to the non-credit portion of other-than-temporary impairment losses on the Bank's non-agency RMBS holdings declined from $62.8 million at June 30, 2010 and $66.6 million at December 31, 2009 to $57.8 million at September 30, 2010.
Additional selected financial data as of and for the quarter and nine months ended September 30, 2010 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, 2010 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 more than 900 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico and Texas. For more information, visit the Bank's website at fhlb.com.
The Federal Home Loan Bank of Dallas logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3013
CONTACT: Federal Home Loan Bank of Dallas Corporate Communications (214) 441-8445 www.fhlb.com