FHLB Des Moines and FHLB Seattle Members Ratify Merger Agreement

The Federal Home Loan Bank of Des Moines (“FHLB Des Moines”) and the Federal Home Loan Bank of Seattle (“FHLB Seattle”) announced today that the members of both Banks have ratified the Merger Agreement approved by their boards of directors in September 2014. Member ratification of the Merger Agreement is a critical step in the process of merging the two Banks. The merger is expected to close once the Banks have satisfied the conditions of the Federal Housing Finance Agency’s (FHFA) December 2014 approval of the Banks’ merger application, and the FHFA has accepted the continuing Bank’s organization certificate.

“We are pleased to announce that we have completed the important step of receiving member ratification on schedule, which allows us to move forward with the final steps toward closing. This vote by the FHLB Des Moines and FHLB Seattle members demonstrates their understanding that a combined Bank will result in a cooperative that is well-positioned to continue to fulfill our mission over the long run,” commented Dick Swanson, FHLB Des Moines president and CEO.

Serving nearly 1,500 financial institutions in 13 states and three U.S. territories, the combined Bank will be the largest in the FHLBank System in terms of membership and geography. Among other benefits of the merger, members will have access to an enhanced suite of products and services designed to help meet the housing, economic development and business needs of the communities they serve.

“We are delighted that the members of both Banks have endorsed this merger,” said Mike Wilson, FHLB Seattle president and CEO. “As we work to combine our businesses, we are focused on providing a smooth transition for FHLB Seattle members. Our management teams and staffs are working closely together to ensure that throughout, and after the merger process, we maintain the high level of customer service and support that our members are accustomed to receiving.”

The Banks anticipate that the merger will be effective by mid-year. The combined Bank will be headquartered in Des Moines and maintain a western regional office in Seattle.

The two Banks are part of the Federal Home Loan Bank (FHLBank) System. Created by Congress in 1932, the FHLBanks are a strong and reliable source of funds for local lenders to finance housing, community development, jobs and economic growth. There are currently 12 FHLBanks; 11 will remain after the merger. Each FHLBank is a cooperative owned by its member financial institutions. FHLBank membership includes more than 7,300 financial institutions, including commercial banks, credit unions, thrifts, insurance companies and community development financial institutions from every U.S. state and territory.

Questions about this story? Contact James Pearson: 206.340.4790, jpearson@nwcua.org.

Posted in Federal.