FHLB Dallas Hikes Dividend

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DALLAS – The Federal Home Loan Bank of Dallas announced Thursday it plans to push its second quarter dividend up to a five-year high of 4.91%. That compares to a 4.45% payout for the first quarter, and one of 3.44% for the second quarter last year.

The dividends will be paid to the Dallas Bank’s 890 members, including 36 credit unions, on June 30.

Taking into consideration its retained earnings targets, as well as current earnings expectations and anticipated market conditions, the Bank currently expects to pay dividends during the remainder of 2006 at the low end of its target range of 0 to 50 basis points above the average effective federal funds rate for the applicable dividend period.

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