Year-end financials reveal significant growth and increased investment in housing
The Federal Home Loan Bank of Dallas (FHLB Dallas) announced its financial results for the final quarter of 2023, revealing a net income of $212.4 million.
This was down from the bank’s reported earnings of $247.7 million in the third quarter of 2023 and up from $115.9 million in the final quarter of 2022. Over the entire year, FHLB Dallas reported a significant increase in net income, totaling $874.5 million, up from $317.2 million in 2022.
As of December 31, the bank’s total assets stood at $128.3 billion. This is a decrease from $147.6 billion reported at the end of September 2023 but represents an increase from $114.3 billion at the end of 2022.
FHLB Dallas experienced a fluctuation in its assets throughout the year, with average total assets reaching $138.6 billion in the quarterly period and $154.4 billion annually, up from $100.9 billion and $76.8 billion respectively in 2022.
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The dip in total assets in Q4 2023, amounting to $19.3 billion, was mainly due to declines in its short-term liquidity holdings, though this was partially offset by an increase in long-term investments. Meanwhile, the annual increase of $14 billion in total assets was driven by rises in advances, long-term investments, and mortgage loans held for portfolio, despite a slight decrease in short-term liquidity holdings.
FHLB’s financial report showed that its mortgage loans held for portfolio also saw growth, reaching $5.1 billion by year-end. The carrying value of the bank’s long-term securities portfolios, mainly comprising US agency residential mortgage-backed securities and US agency debentures and commercial MBS, exhibited an increase over the year.
FHLB Dallas allocated $97.2 million to its Affordable Housing Program (AHP) for the year 2023. Retained earnings grew to $2.413 billion at the end of the year, up from $1.834 billion at the end of 2022.
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