Federal Home Loan Bank of Dallas Reports Second Quarter 2025 Operating Results
Total assets at June 30, 2025 were $116.1 billion, compared with $109.9 billion at March 31, 2025 and $127.7 billion at December 31, 2024. Average total assets decreased from $126.2 billion and $125.9 billion for the quarter and six months ended June 30, 2024, respectively, to $114.3 billion and $114.3 billion for the corresponding periods in 2025. The $6.2 billion increase in total assets during the second quarter of 2025 was primarily attributable to increases in the Bank's advances ($4.3 billion), short-term liquidity holdings ($2.3 billion) and mortgage loans held for portfolio ($0.3 billion), partially offset by a decrease in the Bank's long-term investments ($0.8 billion). The $11.6 billion decrease in total assets during the six months ended June 30, 2025 was attributable primarily to decreases in the Bank's short-term liquidity holdings ($8.7 billion) and advances ($3.6 billion), partially offset by increases in the Bank's mortgage loans held for portfolio ($0.4 billion) and long-term investments ($0.3 billion).
Advances totaled $64.1 billion at June 30, 2025, compared with $59.8 billion at March 31, 2025 and $67.7 billion at December 31, 2024. The Bank's mortgage loans held for portfolio totaled $6.2 billion at June 30, 2025, as compared to $5.9 billion at March 31, 2025 and $5.8 billion at December 31, 2024.
The carrying value of the Bank's long-term held-to-maturity securities portfolio, which is comprised of U.S. agency residential mortgage-backed securities (MBS), totaled $1.1 billion, $1.2 billion and $0.2 billion at June 30, 2025, March 31, 2025 and December 31, 2024, respectively. 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 $18.4 billion at June 30, 2025, as compared to $19.1 billion at March 31, 2025 and $19.0 billion at December 31, 2024. At June 30, 2025, March 31, 2025 and December 31, 2024, 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 June 30, 2025, March 31, 2025 and December 31, 2024, the Bank's short-term liquidity holdings totaled $25.7 billion, $23.4 billion and $34.4 billion, respectively.
The Bank's retained earnings increased to $3.041 billion at June 30, 2025 from $2.941 billion at March 31, 2025 and $2.849 billion at December 31, 2024. On June 24, 2025, a dividend of $49.3 million was paid to the Bank's shareholders.
Additional selected financial data as of and for the quarter and six months ended June 30, 2025 (and, for comparative purposes, as of March 31, 2025 and December 31, 2024, and for the quarters ended March 31, 2025 and June 30, 2024 and the six months ended June 30, 2024) is set forth below. Further discussion and analysis regarding the Bank's results will be included in its Form 10-Q for the quarter ended June 30, 2025 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.
March 31, 2025
December 31, 2024
Assets
Investments (1)
$
45,342,669
$
43,737,898
$
53,740,886
Advances
64,103,762
59,808,271
67,743,248
Mortgage loans held for portfolio, net
6,162,061
5,883,689
5,764,053
Cash and other assets
451,925
454,722
476,861
Total assets
$
116,060,417
$
109,884,580
$
127,725,048
Liabilities
Consolidated obligations
Discount notes
$
24,944,135
$
15,131,144
$
21,637,276
Bonds
81,266,694
85,080,418
96,215,218
Total consolidated obligations
106,210,829
100,211,562
117,852,494
Mandatorily redeemable capital stock
1,711
7,302
181
Other liabilities
2,855,326
2,921,844
2,676,712
Total liabilities
109,067,866
103,140,708
120,529,387
Capital
Capital stock — putable
3,850,447
3,637,544
4,168,043
Retained earnings
3,040,934
2,941,210
2,848,948
Total accumulated other comprehensive income
101,170
165,118
178,670
Total capital
6,992,551
6,743,872
7,195,661
Total liabilities and capital
$
116,060,417
$
109,884,580
$
127,725,048
Total regulatory capital (2)
$
6,893,092
$
6,586,056
$
7,017,172
Expand
For the
For the
For the
For the
For the
June 30, 2025
March 31, 2025
June 30, 2024
June 30, 2025
June 30, 2024
Selected Statement of Income Data:
Net interest income (3)
$
194,080
$
187,700
$
229,087
$
381,780
$
452,585
Other income
13,817
14,703
14,616
28,520
25,081
Other expense
Operating expense
28,811
28,031
28,419
56,842
55,110
Voluntary grants, donations and AHP contributions
8,785
2,134
1,778
10,919
2,846
Other
4,741
4,864
5,425
9,605
10,972
AHP assessment
16,564
16,750
20,809
33,314
40,878
Net income
$
148,996
$
150,624
$
187,272
$
299,620
$
367,860
Expand
(1)
Investments consist of interest-bearing deposits, securities purchased under agreements to resell, federal funds sold, trading securities, available-for-sale securities and held-to-maturity securities.
(2)
As of June 30, 2025, March 31, 2025 and December 31, 2024, total regulatory capital represented 5.94 percent, 5.99 percent and 5.49 percent, respectively, of total assets as of those dates.
(3)
Net interest income is net of the provision (reversal) for credit losses.
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Puget and Avista will remain responsible for their respective pre-closing share of environmental and pension liabilities attributed to events or conditions existing prior to the closing of the transaction and for any future decommissioning and demolition costs associated with the existing facilities that comprise their interests. During the second half of 2025 we intend to make filings with the MPSC and the Federal Energy Regulatory Commission (FERC) associated with these transactions, including recovery of incremental operating costs. Three Months Ended June 30, 2025 vs. 2024 Variance in revenue and fuel, purchased supply, and direct transmission expense (1) items impacting net income: Rates 19.4 (4.9 ) 14.5 0.23 Electric transmission revenue 5.7 (1.4 ) 4.3 0.07 Natural gas transportation 1.6 (0.4 ) 1.2 0.02 Production tax credits, offset within income tax benefit 1.2 (1.2 ) — — Natural gas retail volumes (4.0 ) 1.0 (3.0 ) (0.05 ) Montana property tax tracker collections (4.3 ) 1.1 (3.2 ) (0.05 ) Electric retail volumes (2.9 ) 0.7 (2.2 ) (0.04 ) Non-recoverable Montana electric supply costs (2.0 ) 0.5 (1.5 ) (0.02 ) Other (0.2 ) 0.1 (0.1 ) — Variance in expense items (2) impacting net income: Depreciation (5.5 ) 1.4 (4.1 ) (0.07 ) Interest expense (4.4 ) 1.1 (3.3 ) (0.05 ) Operating, maintenance, and administrative (10.0 ) 2.5 (7.5 ) (0.12 ) Property and other taxes not recoverable within trackers (1.5 ) 0.4 (1.1 ) (0.02 ) Other (4.4 ) (0.1 ) (4.5 ) (0.07 ) Dilution from higher share count — Second Quarter, 2025 $ 24.6 $ (3.4 ) $ 21.2 $ 0.35 Change in Net Income $ (10.5 ) $ (0.17 ) Expand (1) Exclusive of depreciation and depletion shown separately below (2) Excluding fuel, purchased supply, and direct transmission expense (3) Income Tax (Expense) Benefit calculation on reconciling items assumes blended federal plus state effective tax rate of 25.3%. Expand EXPLANATION OF CONSOLIDATED RESULTS Three Months Ended June 30, 2025 Compared with the Three Months Ended June 30, 2024 Consolidated gross margin for the three months ended June 30, 2025 was $94.5 million as compared with $92.8 million in 2024, an increase of $1.7 million, or 1.8 percent. This increase was primarily due to higher retail rates, higher electric transmission, and natural gas transportation revenues. These were partly offset by lower retail natural gas and electric usage primarily driven by weather, Montana property tax tracker collections, non-recoverable Montana electric supply costs, depreciation, and operating and maintenance costs. ($ in millions) Three Months Ended June 30, Reconciliation of gross margin to utility margin: 2025 2024 Operating Revenues $ 342.7 $ 319.9 Less: Fuel, purchased supply and direct transmission expense (exclusive of depreciation and depletion shown separately below) 75.3 76.5 Less: Operating and maintenance 62.3 57.4 Less: Property and other taxes 48.2 36.2 Less: Depreciation and depletion 62.4 57.0 Gross Margin 94.5 92.8 Operating and maintenance 62.3 57.4 Property and other taxes 48.2 36.2 Depreciation and depletion 62.4 57.0 Utility Margin (1) $ 267.4 $ 243.4 Expand (1) Non-GAAP financial measure. See 'Non-GAAP Financial Measures' below. Expand Three Months Ended June 30, ($ in millions) 2025 2024 Change % Change Utility Margin Electric $ 219.8 $ 199.2 $ 20.6 10.3 % Natural Gas 47.6 44.2 3.4 7.7 Total Utility Margin (1) $ 267.4 $ 243.4 $ 24.0 9.9 % Expand (1) Non-GAAP financial measure. See 'Non-GAAP Financial Measures' below. Expand Consolidated utility margin for the three months ended June 30, 2025 was $267.4 million as compared with $243.4 million for the same period in 2024, an increase of $24.0 million, or 9.9 percent. Primary components of the change in utility margin include the following: ($ in millions) Utility Margin Utility Margin Items Impacting Net Income Interim rates (subject to refund) $ 17.9 Transmission revenue due to market conditions and rates 5.7 Montana natural gas transportation 1.6 Base rates 1.5 Montana property tax tracker collections (4.3 ) Natural gas retail volumes (4.0 ) Electric retail volumes (2.9 ) Non-recoverable Montana electric supply costs (2.0 ) Other (0.2 ) Change in Utility Margin Items Impacting Net Income 13.3 Utility Margin Items Offset Within Net Income Property and other taxes recovered in revenue, offset in property and other taxes 10.4 Production tax credits, offset in income tax expense 1.2 Operating expenses recovered in revenue, offset in operating and maintenance expense (0.9 ) Change in Utility Margin Items Offset Within Net Income 10.7 Increase in Consolidated Utility Margin (1) $ 24.0 Expand (1) Non-GAAP financial measure. See 'Non-GAAP Financial Measures' below. Expand Lower electric retail volumes were driven by unfavorable spring weather in all jurisdictions impacting residential demand, and lower commercial and industrial demand, partly offset by customer growth in all jurisdictions. Lower natural gas retail volumes were driven by unfavorable weather in all jurisdictions, partly offset by customer growth in all jurisdictions. Under the PCCAM, net supply costs higher or lower than the PCCAM base rate (PCCAM Base) (excluding qualifying facility costs) are allocated 90 percent to Montana customers and 10 percent to shareholders. For the three months ended June 30, 2025, we under-collected supply costs of $7.6 million resulting in an increase to our under collection of costs, and recorded a decrease in pre-tax earnings of $0.8 million (10 percent of the PCCAM Base cost variance). For the three months ended June 30, 2024, we over-collected supply costs of $11.0 million resulting in a reduction to our under collection of costs, and recorded an increase in pre-tax earnings of $1.2 million (10 percent of the PCCAM Base cost variance). Consolidated operating expenses, excluding fuel, purchased supply and direct transmission expense, were $206.7 million for the three months ended June 30, 2025, as compared with $181.9 million for the three months ended June 30, 2024. Primary components of the change include the following: (1) In order to present the total change in labor and benefits, we have included the change in the non-service cost component of our pension and other postretirement benefits, which is recorded within other income on our Condensed Consolidated Statements of Income. This change is offset within this table as it does not affect our operating expenses. Expand We estimate property taxes throughout each year, and update those estimates based on valuation reports received from the Montana Department of Revenue. Under Montana law, we are allowed to track the increases and decreases in the actual level of state and local taxes and fees and adjust our rates to recover the increase or decrease between rate cases less the amount allocated to FERC-jurisdictional customers and net of the associated income tax benefit. Consolidated operating income for the three months ended June 30, 2025 was $60.8 million as compared with $61.6 million in the same period of 2024. This decrease was primarily due to lower retail natural gas and electric usage primarily driven by weather, Montana property tax tracker collections, non-recoverable Montana electric supply costs, depreciation, and operating, administrative and general costs. These were partly offset by higher retail rates, higher electric transmission, and natural gas transportation revenues. Consolidated interest expense was $36.3 million for the three months ended June 30, 2025 as compared with $31.9 million for the same period of 2024. This increase was due to higher borrowings and interest rates and lower capitalization of Allowance for Funds Used During Construction (AFUDC). Consolidated other income was $0.1 million for the three months ended June 30, 2025 as compared with $6.2 million for the same period of 2024. This decrease was primarily due to lower capitalization of AFUDC, a decrease in the value of deferred shares held in trust for deferred compensation, higher non-service component pension expense, and a $1.0 million expense accrual related to an estimated penalty for the previously disclosed Community Renewable Energy Project informed by a recent MPSC ruling. Consolidated income tax expense was $3.4 million for the three months ended June 30, 2025 as compared to $4.2 million for the same period of 2024. Our effective tax rate for the three months ended June 30, 2025 was 13.7% as compared with 11.8% for the same period in 2024. The following table summarizes the differences between our effective tax rate and the federal statutory rate: We compute income tax expense for each quarter based on the estimated annual effective tax rate for the year, adjusted for certain discrete items. Our effective tax rate typically differs from the federal statutory tax rate primarily due to the regulatory impact of flowing through federal and state tax benefits of repairs deductions, state tax benefit of accelerated tax depreciation deductions (including bonus depreciation when applicable) and production tax credits. Liquidity and Capital Resources As of June 30, 2025, our total net liquidity was approximately $317.9 million, including $2.9 million of cash and $315.0 million of revolving credit facility availability with no letters of credit outstanding. This compares to total net liquidity one year ago at June 30, 2024 of $393.4 million. Earnings Per Share Basic earnings per share are computed by dividing earnings applicable to common stock by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of common stock equivalent shares that could occur if unvested shares were to vest. Common stock equivalent shares are calculated using the treasury stock method, as applicable. The dilutive effect is computed by dividing earnings applicable to common stock by the weighted average number of common shares outstanding plus the effect of the outstanding unvested restricted stock and performance share awards. Average shares used in computing the basic and diluted earnings per share are as follows: (1) Performance share awards are included in diluted weighted average number of shares outstanding based upon what would be issued if the end of the most recent reporting period was the end of the term of the award. Expand Six Months Ended June 30, 2025 June 30, 2024 Basic computation 61,360,252 61,277,418 Dilutive effect of: Performance share awards (1) 95,733 56,065 Diluted computation 61,455,985 61,333,483 Expand As of June 30, 2025, there were 68,107 shares from performance and restricted share awards which were antidilutive and excluded from the earnings per share calculations, compared to 35,933 shares as of June 30, 2024. Adjusted Non-GAAP Earnings We reported GAAP earnings of $0.35 per diluted share for the three months ended June 30, 2025 and $0.52 per diluted share for the same period in 2024. Adjusted Non-GAAP earnings per diluted share for the same periods are $0.40 and $0.53, respectively. A reconciliation of items factored into our Adjusted Non-GAAP diluted earnings are summarized below. The amount below represents a non-GAAP measure that may provide users of this data with additional meaningful information regarding the impact of certain items on our expected earnings. More information on this measure can be found in the "Non-GAAP Financial Measures" section below. (1) Income tax rate on reconciling items assumes blended federal plus state effective tax rate of 25.3%. Expand Company Hosting Earnings Webinar NorthWestern will host an investor earnings webinar on Thursday, July 31, 2025, at 3:30 p.m. Eastern time to review its financial results for the quarter ending June 30, 2025. To register for the webinar, please visit Please go to the site at least 15 minutes in advance of the webinar to register. An archived webinar will be available shortly after the event and remain active for one year. NorthWestern Energy Group, Inc., doing business as NorthWestern Energy, provides essential energy infrastructure and valuable services that enrich lives and empower communities while serving as long-term partners to our customers and communities. We work to deliver safe, reliable, and innovative energy solutions that create value for customers, communities, employees, and investors. We do this by providing low-cost and reliable service performed by highly-adaptable and skilled employees. We provide electricity and / or natural gas to approximately 842,100 customers in Montana, South Dakota, Nebraska, and Yellowstone National Park. Our operations in Montana and Yellowstone National Park are conducted through our subsidiary, NW Corp, and our operations in South Dakota and Nebraska are conducted through our subsidiary, NWE Public Service. We have provided service in South Dakota and Nebraska since 1923 and in Montana since 2002. Non-GAAP Financial Measures This press release includes financial information prepared in accordance with GAAP, as well as other financial measures, such as Utility Margin, Adjusted Non-GAAP pretax income, Adjusted Non-GAAP net income and Adjusted Non-GAAP Diluted EPS that are considered 'non-GAAP financial measures.' Generally, a non-GAAP financial measure is a numerical measure of a company's financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP. We define Utility Margin as Operating Revenues less fuel, purchased supply, and direct transmission expense (exclusive of depreciation and depletion) as presented in our Condensed Consolidated Statements of Income. This measure differs from the GAAP definition of Gross Margin due to the exclusion of Operating and maintenance, Property and other taxes, and Depreciation and depletion expenses, which are presented separately in our Condensed Consolidated Statements of Income. A reconciliation of Utility Margin to Gross Margin, the most directly comparable GAAP measure, is included in the press release above. Management believes that Utility Margin provides a useful measure for investors and other financial statement users to analyze our financial performance in that it excludes the effect on total revenues caused by volatility in energy costs and associated regulatory mechanisms. This information is intended to enhance an investor's overall understanding of results. Under our various state regulatory mechanisms, as detailed below, our supply costs are generally collected from customers. In addition, Utility Margin is used by us to determine whether we are collecting the appropriate amount of energy costs from customers to allow for recovery of operating costs, as well as to analyze how changes in loads (due to weather, economic or other conditions), rates and other factors impact our results of operations. Our Utility Margin measure may not be comparable to that of other companies' presentations or more useful than the GAAP information provided elsewhere in this report. Management also believes the presentation of Adjusted Non-GAAP pre-tax income, Adjusted Non-GAAP net income, and Adjusted Non-GAAP Diluted EPS is more representative of normal earnings than GAAP pre-tax income, net income, and EPS due to the exclusion (or inclusion) of certain impacts that are not reflective of ongoing earnings. The presentation of these non-GAAP measures is intended to supplement investors' understanding of our financial performance and not to replace other GAAP measures as an indicator of actual operating performance. Our measures may not be comparable to other companies' similarly titled measures. Special Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995, including, without limitation, the information under "Reconciliation of Non-GAAP Items." Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed. We caution that while we make such statements in good faith and believe such statements are based on reasonable assumptions, including without limitation, management's examination of historical operating trends, data contained in records and other data available from third parties, we cannot assure you that we will achieve our projections. Factors that may cause such differences include, but are not limited to: adverse determinations by regulators, such as adverse outcomes from the denial of interim rates or final rates not consistent with a reasonable ability to earn our allowed returns, as well as potential adverse federal, state, or local legislation or regulation, including costs of compliance with existing and future environmental requirements, and wildfire damages in excess of liability insurance coverage, could have a material effect on our liquidity, results of operations and financial condition; the impact of extraordinary external events and natural disasters, such as a wide-spread or global pandemic, geopolitical events, earthquake, flood, drought, lightning, weather, wind, and fire, could have a material effect on our liquidity, results of operations and financial condition; acts of terrorism, cybersecurity attacks, data security breaches, or other malicious acts that cause damage to our generation, transmission, or distribution facilities, information technology systems, or result in the release of confidential customer, employee, or Company information; supply chain constraints, recent high levels of inflation for product, services and labor costs, and their impact on capital expenditures, operating activities, and/or our ability to safely and reliably serve our customers; changes in availability of trade credit, creditworthiness of counterparties, usage, commodity prices, fuel supply costs or availability due to higher demand, shortages, weather conditions, transportation problems or other developments, may reduce revenues or may increase operating costs, each of which could adversely affect our liquidity and results of operations; unscheduled generation outages or forced reductions in output, maintenance or repairs, which may reduce revenues and increase operating costs or may require additional capital expenditures or other increased operating costs; and adverse changes in general economic and competitive conditions in the U.S. financial markets and in our service territories. Our 2024 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, reports on Form 8-K and other Securities and Exchange Commission filings discuss some of the important risk factors that may affect our business, results of operations and financial condition. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
