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| 8-K - JANUARY 28, 2014 8-K - DIVIDEND ANNOUNCEMENT - Federal Home Loan Bank of Chicago | january2820148-kxdividenda.htm |
EXHIBIT 99.1
January 28, 2014
To Our Members:
The Board of Directors of the Federal Home Loan Bank of Chicago (FHLBC) has declared a cash dividend for both the average activity-based capital stock (Class B1) and average membership-based capital stock (Class B2), based on the Bank’s preliminary financial results for the fourth quarter of 2013.
The dividend declared per share of Class B1 activity stock is at an annualized rate of 1.30%. The dividend declared per share of Class B2 membership stock is at an annualized rate of 0.30%. The actual effective combined dividend rate on the total stock held by each member will depend on its level of activity with the FHLBC during the fourth quarter and the relative number of shares of membership and activity stock. The dividend will be paid by crediting your account on February 13, 2014.
We are pleased that the Bank’s fourth quarter financial performance allows us to provide increased value to our members by paying an enhanced dividend on Class B1 activity stock, which effectively lowers your cost of borrowing, and also to pay an appropriate dividend on Class B2 membership stock.
Best regards,
/s/ Matt Feldman
Matt Feldman
President and CEO
This letter contains forward-looking statements which are based upon our current expectations and speak only as of the date hereof. These statements may use forward-looking terms, such as “anticipates,” “believes,” “expects,” “could,” “plans,” “estimates,” “may,” “should,” “will,” or their negatives or other variations on these terms. We caution that, by their nature, forward-looking statements involve risk or uncertainty, that actual results could differ materially from those expressed or implied in these forward-looking statements, and that actual events could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties including, but not limited to, instability in the credit and debt markets, economic conditions (including effects on, among other things, mortgage-backed securities), changes in mortgage interest rates and prepayment speeds on mortgage assets, our ability to successfully transition to a new business model and to pay future dividends (including enhanced dividends on activity stock), our ability to meet required conditions to repurchase or redeem excess capital stock from our members, including maintaining compliance with our minimum regulatory capital requirements and determining our financial condition is sound enough to support such repurchases and redemptions, and the risk factors set forth in our periodic filings with the Securities and Exchange Commission, which are available on our website at www.fhlbc.com. We assume no obligation to update any forward-looking statements made in this letter.