PRNewswire/ -- The board of directors of Federal Home Loan Bank of Atlanta (FHLBank Atlanta) has approved an annualized dividend rate for the third quarter of 2.89 percent. This rate is equal to average three-month LIBOR (London Interbank Offered Rate) for the period July 1, 2008 to Sept. 29, 2008. The dividend is applicable to capital stock held during the period of July 1, 2008 to Sept. 30, 2008, and will be credited to members' daily investment accounts at close of business on Oct. 1, 2008.
The annualized dividend rate is lower than previous third quarter guidance because of recent volatility in the financial markets and a more conservative financial management approach in light of these conditions. In addition, the Bank will change its dividend declaration and payment schedule beginning in the fourth quarter of 2008 so a dividend can be declared and paid to member accounts after net income is calculated for the preceding quarter. To accommodate this change, the Bank will declare any fourth quarter dividend at the end of Jan. 2009 and pay it into member accounts at that time.
The Bank recognizes the value our dividend provides to member financial institutions. During the first three quarters of 2008, the Bank has paid an annualized dividend rate of 4.88 percent, which exceeds average three-month LIBOR by approximately 190 basis points. "Dividends are an attractive aspect of our cooperative, and we anticipate that once we move beyond this transition period, members will appreciate the certainty associated with the new dividend schedule," said Richard A. Dorfman, President and CEO of FHLBank Atlanta.
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