• March 22, 2023
• Bulletin No: 2023-04

First Quarter 2023 Dividend

The Board of Directors of the Federal Home Loan Bank of Dallas (Bank) has declared dividends in the form of capital stock on Class B-1 Stock and Class B-2 Stock for the first quarter of 2023.

The annualized dividend rate on Class B-1 Stock (membership and excess stock) is 3.89 percent, which equates to the average one-month LIBOR rate for the fourth quarter of 2022. This dividend rate is equal to the Bank’s current target dividend rate for Class B-1 Stock.

The annualized dividend rate on Class B-2 Stock (activity-based stock) is 4.89 percent, which equates to the average one-month LIBOR rate for the fourth quarter of 2022 plus 1.0 percent. This dividend rate is at the upper end of the Bank’s current target range for dividends on Class B-2 Stock.

The annualized dividend rates of 3.89 percent and 4.89 percent will be applied to members’ average balances of Class B-1 Stock and Class B-2 Stock, respectively, which were held during the period from October 1, 2022 through December 31, 2022. The first quarter dividends on Class B-1 and Class B-2 Stock will be paid on Tuesday, March 28, 2023 in the form of Class B-1 Stock with any fractional shares paid in cash.

Future Dividends

As previously announced in Bulletin No. 2022-31 dated December 9, 2022, the Bank’s Board of Directors has adopted new dividend target ranges for Class B-1 and Class B-2 Stock that will become effective beginning with the dividends that are expected to be paid in the second quarter of 2023, such that they will be indexed to the average overnight SOFR rate. The dividend target ranges were modified in anticipation of the discontinuance of one-month LIBOR after June 30, 2023.

While there can be no assurances about future dividends or future dividend rates, the target range for quarterly dividends on Class B-1 Stock will be an annualized rate that approximates the average overnight SOFR rate plus 0 – 0.5 percent and the target range for quarterly dividends on Class B-2 Stock will be an annualized rate that approximates the average overnight SOFR rate plus 1.0 – 1.5 percent.

Consistent with the Bank’s current practice, dividends will be based upon shareholders’ average capital stock holdings and the average benchmark index rate for the preceding quarter. By way of example, the dividends that are expected to be paid in the second quarter of 2023 will be based upon shareholders’ average capital stock holdings and the average overnight SOFR rate for the first quarter of 2023.

If you have any questions, please call Member Services at 844.FHL.BANK (844.345.2265).

Sincerely,

Sanjay K. Bhasin
President and Chief Executive Officer