Last10K.com

Federal Home Loan Bank Of Topeka (1325878) SEC Filing 10-Q Quarterly report for the period ending Sunday, June 30, 2019

Federal Home Loan Bank Of Topeka

CIK: 1325878


Exhibit 99.1
FHLBANK TOPEKA ANNOUNCES 2019 SECOND QUARTER RESULTS

July 29, 2019 - FHLBank Topeka (FHLBank) announces its 2019 second quarter operating results. FHLBank is reporting net income computed in accordance with U.S. generally accepted accounting principles (GAAP) of $31.7 million for the three months ended June 30, 2019 compared to $45.7 million for the three months ended June 30, 2018. For the six months ended June 30, 2019, FHLBank is reporting net income of $84.5 million compared to $85.3 million for the six months ended June 30, 2018.

During the second quarter of 2019, FHLBank paid a dividend of 2.50 percent on the average outstanding shares of Class A Common Stock and 7.50 percent on the average outstanding shares of Class B Common Stock. Other operating highlights from the second quarter of 2019 are presented below. FHLBank expects to file its Form 10-Q for the quarter ended June 30, 2019 with the Securities and Exchange Commission (SEC) on or about August 8, 2019.

Operating Highlights
Net income for the three months ended June 30, 2019 decreased $14.0 million, or 30.7 percent, compared to the same period in 2018 and decreased by $0.9 million, or 1.0 percent, for the six months ended June 30, 2019 compared to the prior year period. The decline in both periods was driven by mark-to-market losses on investment fair value hedges and an increase in the average cost of debt caused by an increase in short-term interest rates between June 30, 2018 and June 30, 2019, and the replacement of maturing debt at higher current market rates, combined with higher balances of lower yielding investments. Further, the decline in net income for the six months ended June 30, 2019 was a result of a decline in the average balance of interest-earning assets, primarily advances, in addition to the aforementioned factors. Declines in market interest rates since December 31, 2018 resulted in unrealized fair value losses recorded for the majority of economic derivatives, but those losses were offset by positive fair value fluctuations on trading securities, resulting in unrealized net gains recorded in other income for both the three- and six-month periods.

Net interest income after provision for credit losses for the three months ended June 30, 2019 was $49.2 million compared to $68.9 million for the same period in the prior year. For the six months ended June 30, 2019, net interest income after provision for credit losses was $112.1 million compared to $135.3 million for the same period in the prior year. The majority of the decline in both the three- and six-month periods resulted from the impact of the adoption of a new hedge accounting standard on January 1, 2019 that requires gains and losses on designated fair value hedges to be presented in the income statement line item related to the hedged item, which is interest income/expense for FHLBank. The guidance was adopted prospectively, so the gains and losses on fair value hedges in the prior year are presented in other income, which creates a lack of comparability between periods. Net fair value losses on designated fair value hedges recorded in net interest income for the three months ended June 30, 2019 were $14.8 million, which resulted in a decrease in net interest margin of eleven basis points. Net fair value losses on designated fair value hedges recorded in net interest income for the six months ended June 30, 2019 were $18.9 million, which resulted in a decrease in net interest margin of seven basis points.

The decrease in net interest income unrelated to fair value fluctuations was caused by an increase in the average cost of debt for the three and six months ended June 30, 2019 due to an increase in average interest rates, especially short-term interest rates, between periods, thereby decreasing net interest income. However, interest rates decreased during the second quarter of 2019 which allowed us to replace some unswapped callable consolidated obligation bonds at a lower cost, which will ultimately offset some of the increase in the average cost of debt. Replacing callable debt generally increases interest costs in the short term due to the acceleration of the unamortized concessions (i.e., broker fees) on the debt when it is called because concession costs are amortized to contractual maturity. However, this increase is eventually offset by the lower rate on the new debt.
 
The decrease in net income for the current quarter resulted in a decrease in return on average equity (ROE), from 7.25 percent for the three months ended June 30, 2018 to 5.13 percent for the three months ended June 30, 2019. The decrease in average capital for the current six-month period resulted in an increase in ROE, from 6.67 percent for the six months ended June 30, 2018 compared to 6.93 percent for the six months ended June 30, 2019. The weighted average dividend rate for the three months ended June 30, 2019 was 6.56 percent, which represented a dividend payout ratio of 76.6 percent, compared to a weighted average dividend rate of 5.99 percent and a payout ratio of 52.9 percent for the same period in 2018. The weighted average dividend rate for the six months ended June 30, 2019 was also 6.56 percent, which represented a dividend payout ratio of 57.1 percent, compared to a weighted average dividend rate of 6.00 percent and a payout ratio of 58.5 percent for the same period in 2018.
 
Balance Sheet Highlights
Total assets increased $12.4 billion, or 25.9 percent, from December 31, 2018 to June 30, 2019 primarily due to increases in short- and long-term investments and advances, with a smaller increase in mortgage loans. Mortgage loans increased 9.3 percent from December 31, 2018 to an all-time high of $9.2 billion at June 30, 2019. The majority of the increase and change in composition of investments was in response to changes to regulatory liquidity requirements that became effective March 31, 2019, including the purchase of $3.0 billion in U.S. Treasury obligations since the third quarter of 2018. Total capital increased $126.4 million, or 5.2 percent, between periods due



The following information was filed by Federal Home Loan Bank Of Topeka on Monday, July 29, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one quarter to another to evaluate Federal Home Loan Bank Of Topeka's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Federal Home Loan Bank Of Topeka.

Continue

Assess how Federal Home Loan Bank Of Topeka's management team is paid from their Annual Proxy

Definitive Proxy Statement (Form DEF 14A)
Screenshot example of actual Proxy Statement

Federal Home Loan Bank Of Topeka's Definitive Proxy Statement (Form DEF 14A) filed after their 2019 10-K Annual Report includes:

  • Voting Procedures
  • Board Members
  • Executive Team
  • Salaries, Bonuses, Perks
  • Peers / Competitors

Continue

Tools

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Document And Entity Information
Statements Of Capital
Statements Of Capital (Parenthetical)
Statements Of Cash Flows
Statements Of Comprehensive Income
Statements Of Condition
Statements Of Condition (Parenthetical)
Statements Of Income
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Accumulated Other Comprehensive Income Or Loss) (Details)
Accumulated Other Comprehensive Income (Tables)
Advances
Advances (Advances By Interest Rate Payment Terms) (Details)
Advances (Advances By Year Of Redemption Term, Next Call Date, Or Next Convert Date) (Details)
Advances (Advances Redemption Terms) (Details)
Advances (Narrative) (Details)
Advances (Tables)
Allowance For Credit Losses
Allowance For Credit Losses (Narrative) (Details)
Allowance For Credit Losses (Recorded Investment By Impairment Method) (Details)
Allowance For Credit Losses (Recorded Investment In Delinquent Mortgage Loans) (Details)
Allowance For Credit Losses (Rollforward Of Allowance For Credit Losses On Mortgage Loans) (Details)
Allowance For Credit Losses (Tables)
Assets And Liabilities Subject To Offsetting
Assets And Liabilities Subject To Offsetting (Tables)
Assets And Liabilities Subject To Offsetting Assets Subject To Offsetting (Schedule Of Offsetting Assets) (Details)
Assets And Liabilities Subject To Offsetting Liabilities Subject To Offsetting (Schedule Of Offsetting Liabilities) (Details)
Basis Of Presentation
Basis Of Presentation (Policies)
Capital
Capital (Mandatorily Redeemable Capital Stock By Contractual Year Of Redemption) (Details)
Capital (Mandatorily Redeemable Capital Stock Rollforward) (Details)
Capital (Narrative) (Details)
Capital (Regulatory Capital Requirements) (Details)
Capital (Tables)
Commitments And Contingencies
Commitments And Contingencies (Narrative) (Details)
Commitments And Contingencies (Off-Balance Sheet Commitments) (Details)
Commitments And Contingencies (Tables)
Consolidated Obligations
Consolidated Obligations (Consolidated Bond Obligations By Contractual Maturity Or Next Call Date) (Details)
Consolidated Obligations (Consolidated Bond Obligations Outstanding By Contractual Maturity) (Details)
Consolidated Obligations (Consolidated Bonds By Interest-Rate Payment Type) (Details)
Consolidated Obligations (Consolidated Discount Notes Outstanding) (Details)
Consolidated Obligations (Narrative) (Details)
Consolidated Obligations (Tables)
Deposits
Deposits (Tables)
Deposits (Types Of Deposits) (Details)
Derivatives And Hedging Activities
Derivatives And Hedging Activities (Fair Values Of Derivatives Instruments) (Details)
Derivatives And Hedging Activities (Narrative) (Details)
Derivatives And Hedging Activities (Net Gains Or Losses On Derivatives And Hedging Activities In Non-Interest Income) (Details)
Derivatives And Hedging Activities (Net Gains Or Losses On Derivatives And Hedging Activities) (Details)
Derivatives And Hedging Activities (Tables)
Derivatives And Hedging Activities Derivatives And Hedging Activities (Cumulative Basis Adjustments For Fair Value Hedges) (Details)
Fair Values
Fair Values (Fair Value Summary) (Details)
Fair Values (Hierarchy Level For Financial Assets And Liabilities - Recurring And Nonrecurring) (Details)
Fair Values (Tables)
Investment Securities
Investment Securities (Available-For-Sale Securities By Major Security Type) (Details)
Investment Securities (Available-For-Sale Securities Classified By Contractual Maturities) (Details)
Investment Securities (Available-For-Sale Securities In A Continuous Unrealized Loss Position) (Details)
Investment Securities (Held-To-Maturity Securities By Major Security Type) (Details)
Investment Securities (Held-To-Maturity Securities Classified By Contractual Maturity) (Details)
Investment Securities (Held-To-Maturity Securities In A Continuous Unrealized Loss Position) (Details)
Investment Securities (Net Gains (Losses) On Trading Securities) (Details)
Investment Securities (Tables)
Investment Securities Investment Securities (Proceeds From Sale And Gains And Losses On Htm Securities) (Details)
Investment Securities Investment Securities (Trading Securities By Major Security Type) (Details)
Mortgage Loans
Mortgage Loans (Mortgage Loans Held For Portfolio By Collateral Or Guarantee Type) (Details)
Mortgage Loans (Mortgage Loans Held For Portfolio) (Details)
Mortgage Loans (Tables)
Recently Issued Accounting Standards And Interpretations And Changes In And Adoptions Of Accounting Principles
Transactions With Stockholders
Transactions With Stockholders (Related Party Transactions, By Balance Sheet Grouping) (Details)
Transactions With Stockholders (Related Party Transactions, By Balance Sheet Grouping-Directors) (Details)
Transactions With Stockholders (Schedule Of Related Party Transactions, Mortgage Loans Disclosure) (Details)
Transactions With Stockholders (Tables)

Material Contracts, Statements, Certifications & more

Federal Home Loan Bank Of Topeka provided additional information to their SEC Filing as exhibits

CIK: 1325878
Form Type: 10-Q Quarterly Report
Accession Number: 0001325878-19-000017
Submitted to the SEC: Thu Aug 08 2019 3:04:55 PM EST
Accepted by the SEC: Thu Aug 08 2019
Period: Sunday, June 30, 2019
Industry: Federal And Federally Sponsored Credit Agencies

External Resources:

Bookmark the Permalink:
https://last10k.com/sec-filings/1325878/0001325878-19-000017.htm