DES MOINES, Iowa and SEATTLE, Sept. 25, 2014 (GLOBE NEWSWIRE) -- The
Federal Home Loan Bank of Des Moines ("FHLB Des Moines") and the
Federal Home Loan Bank of Seattle ("FHLB Seattle") announced today that
they have entered into a definitive agreement to merge the two Banks.
Material details of the merger agreement are included in the Banks'
related Form 8-K filings with the Securities and Exchange Commission.
The merger agreement has been unanimously approved by the boards of
directors of both Banks. The closing of the merger is subject to
certain closing conditions, including approval by the Federal Housing
Finance Agency (FHFA) and ratification by the member-owners of the Des
Moines and Seattle Banks.
"The boards of directors of both institutions believe that a merger
between FHLB Des Moines and FHLB Seattle would combine two
complementary organizations with similar cultures, membership
characteristics and solid financial positions," said FHLB Des Moines
President and Chief Executive Officer Dick Swanson. "The combined Bank
would remain a member-owned and member-centric cooperative, deeply
focused on helping its members strengthen their institutions to better
serve their customers and communities."
Nearly 1,500 member financial institutions would benefit from a
combined Bank with increased economies of scale, greater risk
diversification and an enhanced suite of products and services. The
combined institution would serve 13 states and the U.S. Pacific
territories.
"We believe that this merger of Federal Home Loan Banks will result in
a cooperative that will be stronger than either the Seattle or Des
Moines cooperative on an individual basis," commented FHLB Seattle
President and Chief Executive Officer Mike Wilson. "While the combined
Bank will be headquartered in Des Moines, it will be committed to
serving its members and their communities across the new combined
district, with at least one member director from each state on the
board of directors and an ongoing customer-service presence in the
Northwest."
Under the terms of the merger agreement, Dick Swanson and Mike Wilson
would be co-executive leaders, serving as chief executive officer and
president, respectively.
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 12 Federal Home Loan
Banks, each of which is a cooperative owned by member financial
institutions. FHLBank membership includes approximately 7,500 financial
institutions with representation from every U.S. state and territory,
including commercial banks, credit unions, thrifts, insurance companies
and community development financial institutions.
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, FHLB Des Moines and FHLB Seattle members will receive
detailed information about the potential merger. The potential merger
must be approved by the members of both Banks through a voting process
that is expected to take place in the first half of 2015.
Sandler O'Neill served as financial advisor and Morrison & Foerster LLP
served as legal counsel to FHLB Des Moines. Citigroup Global Markets
Inc. served as financial advisor and Perkins Coie LLP served as legal
counsel to FHLB Seattle.
About FHLB Des Moines
Headquartered in Des Moines, FHLB Des Moines is a source of funding for
more than 1,170 members in Iowa, Minnesota, Missouri, North Dakota and
South Dakota. As of June 30, 2014, FHLB Des Moines had $82.2 billion in
assets. For additional information about FHLB Des Moines, please visit
www.fhlbdm.com.
About FHLB Seattle
FHLB Seattle is headquartered in Seattle and provides low-cost long-
and short-term funding to more than 320 members in Alaska, Hawaii,
Idaho, Montana, Oregon, Utah, Washington, and Wyoming, the U.S.
territories of American Samoa and Guam and the Commonwealth of the
Northern Mariana Islands. FHLB Seattle had $36.5 billion in assets as
of June 30, 2014. For additional information about FHLB Seattle, please
visit
www.fhlbseattle.com.
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including those with regard to activities relating to and anticipated
benefits of a potential merger between the Federal Home Loan Bank of
Des Moines and the Federal Home Loan Bank of Seattle. These statements
may be identified by the use of forward-looking terminology, such as
"believes," "expects," "anticipates," "estimates," "intends," "plan,"
"could," "should," "would," "may," and "will," or their negatives, or
other variations on these terms. Forward-looking statements are subject
to known and unknown risks and uncertainties, some of which may be
material. Actual actions, transactions, and performance, including
those relating to the ability of the Banks to obtain FHFA and member
approvals relating to the merger may differ materially from that
expected or implied in forward-looking statements because of many
factors. Such factors may include, but are not limited to, the ability
of the parties to obtain the required approvals relating to the merger
(including from the FHFA and the Banks' members), and to complete the
merger, the ability of the parties tocomplete a transaction pursuant to
the terms of the merger agreement, the ability to realize the expected
benefits and efficiencies of a merger, potential costs, liabilities and
delays relating to the merger,general economic and financial market
conditions, and other internal and external factors that may affect the
ability to complete or the reasons for a merger. Additional factors are
discussed in the Banks' most recent annual reports on Form 10-K,
subsequent quarterly reports on Form 10-Q and other filings made with
the Securities and Exchange Commission. The Banks do not undertake to
update any forward-looking statements made in this announcement.
Members of both Banks will be provided with a Disclosure Statement in
connection with the anticipated member vote on the ratification of the
merger agreement. Members of both Banks are urged to read the
Disclosure Statement carefully when it becomes available.DES MOINES, Iowa and SEATTLE, Sept. 25, 2014 (GLOBE NEWSWIRE) -- The
Federal Home Loan Bank of Des Moines ("FHLB Des Moines") and the
Federal Home Loan Bank of Seattle ("FHLB Seattle") announced today that
they have entered into a definitive agreement to merge the two Banks.
Material details of the merger agreement are included in the Banks'
related Form 8-K filings with the Securities and Exchange Commission.
The merger agreement has been unanimously approved by the boards of
directors of both Banks. The closing of the merger is subject to
certain closing conditions, including approval by the Federal Housing
Finance Agency (FHFA) and ratification by the member-owners of the Des
Moines and Seattle Banks.
"The boards of directors of both institutions believe that a merger
between FHLB Des Moines and FHLB Seattle would combine two
complementary organizations with similar cultures, membership
characteristics and solid financial positions," said FHLB Des Moines
President and Chief Executive Officer Dick Swanson. "The combined Bank
would remain a member-owned and member-centric cooperative, deeply
focused on helping its members strengthen their institutions to better
serve their customers and communities."
Nearly 1,500 member financial institutions would benefit from a
combined Bank with increased economies of scale, greater risk
diversification and an enhanced suite of products and services. The
combined institution would serve 13 states and the U.S. Pacific
territories.
"We believe that this merger of Federal Home Loan Banks will result in
a cooperative that will be stronger than either the Seattle or Des
Moines cooperative on an individual basis," commented FHLB Seattle
President and Chief Executive Officer Mike Wilson. "While the combined
Bank will be headquartered in Des Moines, it will be committed to
serving its members and their communities across the new combined
district, with at least one member director from each state on the
board of directors and an ongoing customer-service presence in the
Northwest."
Under the terms of the merger agreement, Dick Swanson and Mike Wilson
would be co-executive leaders, serving as chief executive officer and
president, respectively.
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 12 Federal Home Loan
Banks, each of which is a cooperative owned by member financial
institutions. FHLBank membership includes approximately 7,500 financial
institutions with representation from every U.S. state and territory,
including commercial banks, credit unions, thrifts, insurance companies
and community development financial institutions.
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, FHLB Des Moines and FHLB Seattle members will receive
detailed information about the potential merger. The potential merger
must be approved by the members of both Banks through a voting process
that is expected to take place in the first half of 2015.
Sandler O'Neill served as financial advisor and Morrison & Foerster LLP
served as legal counsel to FHLB Des Moines. Citigroup Global Markets
Inc. served as financial advisor and Perkins Coie LLP served as legal
counsel to FHLB Seattle.
About FHLB Des Moines
Headquartered in Des Moines, FHLB Des Moines is a source of funding for
more than 1,170 members in Iowa, Minnesota, Missouri, North Dakota and
South Dakota. As of June 30, 2014, FHLB Des Moines had $82.2 billion in
assets. For additional information about FHLB Des Moines, please visit
www.fhlbdm.com.
About FHLB Seattle
FHLB Seattle is headquartered in Seattle and provides low-cost long-
and short-term funding to more than 320 members in Alaska, Hawaii,
Idaho, Montana, Oregon, Utah, Washington, and Wyoming, the U.S.
territories of American Samoa and Guam and the Commonwealth of the
Northern Mariana Islands. FHLB Seattle had $36.5 billion in assets as
of June 30, 2014. For additional information about FHLB Seattle, please
visit
www.fhlbseattle.com.
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including those with regard to activities relating to and anticipated
benefits of a potential merger between the Federal Home Loan Bank of
Des Moines and the Federal Home Loan Bank of Seattle. These statements
may be identified by the use of forward-looking terminology, such as
"believes," "expects," "anticipates," "estimates," "intends," "plan,"
"could," "should," "would," "may," and "will," or their negatives, or
other variations on these terms. Forward-looking statements are subject
to known and unknown risks and uncertainties, some of which may be
material. Actual actions, transactions, and performance, including
those relating to the ability of the Banks to obtain FHFA and member
approvals relating to the merger may differ materially from that
expected or implied in forward-looking statements because of many
factors. Such factors may include, but are not limited to, the ability
of the parties to obtain the required approvals relating to the merger
(including from the FHFA and the Banks' members), and to complete the
merger, the ability of the parties tocomplete a transaction pursuant to
the terms of the merger agreement, the ability to realize the expected
benefits and efficiencies of a merger, potential costs, liabilities and
delays relating to the merger,general economic and financial market
conditions, and other internal and external factors that may affect the
ability to complete or the reasons for a merger. Additional factors are
discussed in the Banks' most recent annual reports on Form 10-K,
subsequent quarterly reports on Form 10-Q and other filings made with
the Securities and Exchange Commission. The Banks do not undertake to
update any forward-looking statements made in this announcement.
Members of both Banks will be provided with a Disclosure Statement in
connection with the anticipated member vote on the ratification of the
merger agreement. Members of both Banks are urged to read the
Disclosure Statement carefully when it becomes available.
