DALLAS, Dec. 19, 2006 (PRIME NEWSWIRE) -- The Board of Directors of the Federal Home Loan Bank of Dallas ("Bank") has declared a dividend in the form of capital stock for the fourth quarter of 2006 at an annualized rate of 5.25 percent, which equates to the average effective federal funds rate for the third quarter of 2006. The fourth quarter dividend, applied to average capital stock held during the period from July 1, 2006 through September 30, 2006 and based upon operating results for that same period, will be paid on December 29, 2006.
As previously announced, effective with the third quarter 2006 dividend, the Bank changed its dividend declaration and payment process in a manner that conforms with the timing provisions of the Federal Housing Finance Board's proposed regulation entitled "Excess Stock Restrictions and Retained Earnings Requirements for the Federal Home Loan Banks." Among other things, the proposed regulation would require Federal Home Loan Banks to declare and pay dividends only after the close of the calendar quarter to which the dividend pertains and the earnings for that quarter have been calculated.
On January 31, 2007, the Bank will repurchase the portion of members' excess stock identified as surplus stock as of that date. Surplus stock is currently defined as the amount of capital stock held by a member that exceeds 110 percent of its minimum investment requirement. A member's surplus stock will not be repurchased if the amount of surplus stock is $250,000 or less.
The Federal Home Loan Bank of Dallas is one of 12 district banks in the FHLBank System created by Congress in 1932. The Bank, with total assets of $58.2 billion as of September 30, 2006, is a member-owned cooperative that supports housing and community development by providing competitively priced loans and other credit products to more than 900 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico and Texas. For more information, visit the Bank's website at www.fhlb.com.
The Federal Home Loan Bank of Dallas logo is available at http://www.primezone.com/newsroom/prs/?pkgid=3013