New analysis surveys Federal Home Loan Banks' merger landscape
Tuesday, August 12, 2014 2:58 PM
The proposed merger of the Federal Home Loan Bank of Des Moines with its Seattle-based counterpart does not face significant opposition, according to an analysis posted today by SNL Financial. Mapping out a firmer picture of what a combined bank would look like as well as the benefits of a merger for member banks will be key as the institutions conduct their due diligence, an expert said. The banks announced on July 31 a proposal to merge into one bank, which would likely be based in Des Moines. The FHLB of Des Moines is significantly larger than its Seattle-based cousin, according to the analysis, and their respective portfolios have been moving in opposite directions, with Des Moines growing and Seattle shrinking.