• June 16, 2023
• Bulletin No: 2023-14

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 second quarter of 2023.

The annualized dividend rate on Class B-1 Stock (membership and excess stock) is 4.60 percent, which equates to the average overnight SOFR rate for the first quarter of 2023 plus 0.1 percent. This dividend rate is within the Bank’s new target range for dividends on Class B-1 Stock.

The annualized dividend rate on Class B-2 Stock (activity-based stock) is 5.60 percent, which equates to the average overnight SOFR rate for the first quarter of 2023 plus 1.1 percent. This dividend rate is within the Bank’s new target range for dividends on Class B-2 Stock.

Beginning with the second quarter 2023 dividend payment, the target range for quarterly dividends on Class B-1 Stock is 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 is an annualized rate that approximates the average overnight SOFR rate plus 1.0 – 1.5 percent. These new dividend target ranges for Class B-1 and Class B-2 Stock, which were adopted by the Bank’s Board of Directors in anticipation of the discontinuance of one-month LIBOR after June 30, 2023, were previously announced in Bulletin No. 2022-31 dated December 9, 2022. Bulletin No. 2023-04 dated March 22, 2023 also referenced these then forthcoming modifications.

The second quarter 2023 dividend rate on Class B-1 Stock approximates the average one-month LIBOR rate for the first quarter of 2023 (the Bank’s previous target dividend rate for Class B-1 Stock). The second quarter 2023 dividend rate on Class B-2 Stock approximates the average one-month LIBOR rate for the first quarter of 2023 plus 1.0 percent (the upper end of the Bank’s previous target range for dividends on Class B-2 Stock).

The annualized dividend rates of 4.60 percent and 5.60 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 January 1, 2023 through March 31, 2023. The second quarter dividends on Class B-1 and Class B-2 Stock will be paid on Thursday, June 29, 2023 in the form of Class B-1 Stock with any fractional shares paid in cash.
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