August 24, 2014

FHLBs in Des Moines and Seattle eye merger

Aug. 6, 2014 – The Federal Home Loan Banks of Des Moines and Seattle announced last week they have entered into an arrangement regarding a potential merger between the banks, which would require approval from their member-owners as well as the Federal Housing Finance Agency.

According to a release, the two banks combined would serve more than 1,500 member financial institutions in 14 states as well as American Samoa, Guam and the Commonwealth of the Northern Mariana Islands.

"The members of FHLB Des Moines and FHLB Seattle would become members of a combined institution that, in our view, would be in a stronger financial position than if both Banks were to remain stand-alone entities," Michael Wilson, the president and CEO of FHLB Seattle, said. "We also believe that the combined Bank would be better able to maintain an appropriate mission focus and strong financial condition in the long run through the challenges of different economic cycles and regional economic conditions."

As of June 2014, FHLB Des Moines had $82.2 billion in assets, and FHLB Seattle had 36.5 billion in assets.

NCUA Call Report data from March shows that 1,212 credit unions – or 18.7 percent of all credit unions – are members of FHLBs.