DES MOINES, Iowa (9/26/14)--The Federal Home Loan Banks (FHLB) of Des Moines and Seattle have agreed to merge, according to a joint announcement Thursday. The merger has been unanimously approved by their boards.
"Given the fundamental changes that have occurred in the financial system since the creation of the Federal Home Loan Banks, FHFA views the merger agreement approved by the boards of the Federal Home Loan Bank of Seattle and the Federal Home Loan Bank of Des Moines positively," said Federal Housing Finance Agency (FHFA) Director Mel Watt. "The merger agreement must be ratified by the members of the two banks, which will occur after FHFA has reviewed and approved the banks' formal merger application."
Watt added that the FHFA will work with both banks throughout the process, and will review the merger application to "ensure that this transaction results in a financially strong bank that supports the interests of all its members."
The combined bank will be headquartered in Des Moines, have $118.5 billion in assets and serve more than 1,490 member financial institutions across 13 states and the U.S. Pacific territories.
Under terms of the merger agreement, current FHLB Des Moines President President/CEO Dick Swanson and FHLB Seattle President/CEO Mike Wilson will serve as co-executive leaders, with Swanson serving as CEO and Wilson as president.
The next step in the process is for the banks to submit a merger application to the FHFA. Following regulatory approval of the merger agreement, members of both banks will receive detailed information about the potential merger.
The member vote on the potential merger is expected to take place in the first half of 2015.