Bulletin No.: 2008-01
March 12, 2008

TO: STOCKHOLDERS

SUBJECT: First Quarter 2008 Dividend and Excess Stock Repurchase

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 first quarter of 2008 at an annualized rate of 4.50 percent, which equates to the average effective federal funds rate for the fourth quarter of 2007. The first quarter dividend, applied to average capital stock held during the period from October 1, 2007 through December 31, 2007 and based upon operating results for that same period, will be paid on March 31, 2008.

On April 30, 2008, 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 105 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. A current estimate of your institution’s excess stock subject to repurchase can be found on SecureConnect (at the bottom of the Capital Stock Worksheet, labeled “Eligible for Mandatory Repurchase”), or by calling your Member Sales Officer at 800.442.9841.

Sincerely,
Terry Smith
President and Chief Executive Officer

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