Bulletin No.: 2008-04
May 23, 2008

TO: STOCKHOLDERS

SUBJECT: Second 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 second quarter of 2008 at an annualized rate of 3.18 percent, which equates to the average effective federal funds rate for the first quarter of 2008. The second quarter dividend, applied to average capital stock held during the period from January 1, 2008 through March 31, 2008 and based upon operating results for that same period, will be paid on June 30, 2008.

On July 31, 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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