10-K - Federal Home Loan Bank of Dallas (0001331757) (Filer)

Fri, Mar 21, 8:01 PM (36 days ago)

The Federal Home Loan Bank of Dallas (FHLB Dallas) is a member-owned cooperative that operates as a separate federally chartered corporation with its own management, employees, and board of directors. The bank serves eligible financial institutions in Arkansas, Louisiana, Mississippi, New Mexico, and Texas, providing them with a reliable source of secured credit in the form of loans known as advances. The bank's primary business is to serve as a financial intermediary between the capital markets and its members, raising funds by issuing debt in the capital markets and lending the proceeds to member institutions at slightly higher rates. The interest spread between the cost of the bank's liabilities and the yield on its assets, combined with the earnings on its invested capital, are the bank's primary sources of earnings. The bank's financial performance for the year ended December 31, 2024, showed total assets of $127.7 billion, a decrease of 0.4% from the previous year. Net income for 2024 was $726.6 million, representing a return on average capital stock of 16.17%. The bank's net interest income after provision for credit losses was $891.5 million, a decrease of $126.3 million from 2023. The bank's net interest margin increased from 66 basis points in 2023 to 72 basis points in 2024. The bank's total advances (at par value) decreased by $12.2 billion (15%) during the year ended December 31, 2024. The largest reductions in advances were attributable to Charles Schwab Bank, Comerica Bank, and Charles Schwab Premier Bank. The bank's strategic overview includes a commitment to maintaining a stable interest spread and managing its assets and liabilities to achieve this goal. The bank's future outlook involves sustaining long-term growth in both advances and mortgage loans held for portfolio, which contribute to the value provided to members and the bank's earnings. The bank's risk factors include interest rate risk, credit risk, and market risk. The bank's financial condition is strong, with a regulatory capital ratio of 5.49% as of December 31, 2024. The bank's market position has seen changes, with advances outstanding to the bank's five largest borrowers representing 50.4% of the bank's total outstanding advances as of December 31, 2024. The bank's strategic initiatives include expanding its product and service offerings to enhance its value to members and continuing to consider ways to enhance its product and/or service offerings. The bank's regulatory oversight is conducted by the Finance Agency, which supervises and regulates the FHLBanks and the Office of Finance. The bank's legislative and regulatory developments include the Finance Agency's review and analysis of the FHLBank System, which seeks to position the FHLBank System to continue serving as a source of stable and reliable liquidity while increasing support for housing and community development. The bank's human capital resources are a significant contributor to its success, with a focus on developing talent from within the organization and supplementing those efforts with external hires. The bank's business strategy and outlook involve operating under a cooperative business model that maximizes the overall value of membership in the bank while generating sufficient profitability to maintain an appropriate level of retained earnings and to pay dividends on members' capital stock. The bank's financial performance for the year ended December 31, 2024, showed a decrease in total assets and net income compared to the previous year. The bank's strategic initiatives include expanding its product and service offerings and continuing to consider ways to enhance its value to members. The bank's risk factors include interest rate risk, credit risk, and market risk. The bank's financial condition is strong, with a regulatory capital ratio of 5.49% as of December 31, 2024. The bank's market position has seen changes, with advances outstanding to the bank's five largest borrowers representing 50.4% of the bank's total outstanding advances as of December 31, 2024. The bank's strategic initiatives include expanding its product and service offerings to enhance its value to members and continuing to consider ways to enhance its product and/or service offerings. The bank's regulatory oversight is conducted by the Finance Agency, which supervises and regulates the FHLBanks and the Office of Finance. The bank's legislative and regulatory developments include the Finance Agency's review and analysis of the FHLBank System, which seeks to position the FHLBank System to continue serving as a source of stable and reliable liquidity while increasing support for housing and community development. The bank's human capital resources are a significant contributor to its success, with a focus on developing talent from within the organization and supplementing those efforts with external hires. The bank's business strategy and outlook involve operating under a cooperative business model that maximizes the overall value of membership in the bank while generating sufficient profitability to maintain an appropriate level of retained earnings and to pay dividends on members' capital stock.