March 2015 - In September 2014, the Federal Home Loan Bank of Des Moines and Federal Home Loan Bank of Seattle announced an agreement to merge the two cooperative institutions. This merger is voluntary and the first to occur in the FHLBank System.
If the merger is approved, the combined institution will be the largest in the FHLBank System by membership, serving more than 1,500 members in 13 states and the U.S. Pacific territories. The merger is a positive development for the Des Moines and Seattle Banks, their members, and the FHLBank System as a whole. Members of the combined cooperative will benefit from an enhanced product offering, increased economies of scale, and greater risk diversification. The FHLBank System as a whole will be stronger through the combination of these complementary institutions.
As you know, the U.S. housing finance system has fundamentally changed in the decades since the creation of the FHLBanks and, in particular, during the recent years following the financial crisis. This merger represents an evolution of the FHLBank System and a strategic response to the greater demands and costs facing the FHLBanks and their members in this new financial environment.
The Federal Housing Finance Agency, the regulator of the FHLBanks, approved the merger application in December, and members of the Des Moines and Seattle Banks independently voted to ratify the merger in February. The Banks anticipate that the merger will be effective by mid-year 2015. The combined Bank will be headquartered in Des Moines and maintain a western regional office in Seattle.
If you have questions about the merger, please call your FHLBank Atlanta relationship manager.
President and Chief Executive Officer