After leaving the navy, Dalton ran the San Antonio, Texas, office of the Little Rock, Arkansas-based Stephens Inc. investment banking firm.

Prior to his employment at Stephens Inc., he was managing director of Best Associates and Mason Best Company, merchant banking firms headquartered in Houston and Dallas respectively.

From 1984 to 1988, Dalton served as chairman and chief executive officer of Freedom Capital Corporation in San Antonio, and president of the Sequin Savings Association.

President Carter nominated Dalton to the Federal Home Loan Bank Board in December 1979, where he served as a member and chairman until July 1981.

Dalton was president of the Government National Mortgage Association of the U.S. Department of Housing and Urban Development before being appointed to the bank board.