CINCINNATI, Sept. 29, 2005 (PRIMEZONE) -- The Federal Housing Finance Board's Office of Supervision today approved a third-quarter dividend of 4.875 percent per annum for the period July 1, 2005 to September 30, 2005, unchanged from the second quarter. This dividend will be paid in the form of additional shares of capital stock on September 30, 2005.
Said David Hehman, president of the FHLBank, "We hope that this dividend rate helps to reinforce that our service to our members continues unimpeded by our ongoing effort to register our capital stock with the Securities and Exchange Commission. We continue to believe, as evidenced by this dividend payment, what we have said in our previous communications -- that the interest rate hedges under discussion with the SEC are highly effective economically. We continue to work diligently with our external auditors and the SEC to resolve these issues regarding the accounting for our hedges and to determine the appropriate accounting treatment prior to year end."
The FHLBank is an $81 billion congressionally-chartered wholesale regional bank providing financial services for residential housing and economic development to 740 member financial institutions located in Kentucky, Ohio and Tennessee. It has contributed $200 million for the creation of 34,000 units of lower-income housing through its Affordable Housing Program since 1990, and $4 million to help 658 persons become first-time homebuyers through the American Dream Homeownership Challenge. The FHLBank System includes 12 district Banks, is wholly owned by its 8,100 member institution stockholders and does not use taxpayer dollars.