Returning a substantial portion of earnings to members provides significant value.
Topeka: The FHLBank believes that returning a substantial portion of earnings to our members in the form of dividends provides significant value. The 6.50% Class B dividend rate reduces the "all-in" cost of an advance, and we encourage our members to factor this highly attractive dividend rate into any funding decision. Please contact the Lending Desk or your Regional Account Manager if you have any questions on factoring the favorable impact the above-market dividend has on FHLBank advance rates and for ideas about how to compare the all-in cost to various deposit pricing strategies and brokered deposit funding options.
Mark Yardley, President and CEO, said, "I am pleased to announce the FHLBank Topeka's board of directors has declared a fourth quarter Class B stock dividend of 6.50% and Class A stock dividend of 1.25%."
The dividend continues to recognize the FHLBank's solid financial performance and provides an attractive return to our members that effectively reduces the cost of advances for our members. The board of directors approved the following fourth quarter dividends for both the activity-based capital stock (Class B) and membership capital stock (Class A) at its December 15, 2017, meeting:
We expect to maintain similar dividend rates for the near future. However, keep in mind that market conditions can be unpredictable and adverse changes may result in lower dividend rates in future quarters. The dividends on both classes of stock are payable in the form of Class B Common Stock and will be credited to your institution's capital stock account at the close of business on December 29, 2017. Any partial shares will be paid in cash and credited to your institution's demand deposit account on that date as well.
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|Publication:||Daily the Pak Banker (Lahore, Pakistan)|
|Date:||Dec 22, 2017|
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