Chicago, Dallas FHLBanks Eye Merger

The Federal Home Loan Banks of Chicago and Dallas have announced discussions aimed at evaluating the feasibility and benefits of combining the business operations of the two institutions.Terry Smith, president and chief executive officer of the Dallas FHLBank, and Mike Thomas, president and CEO of the Chicago FHLBank, issued a joint statement on the talks. "Our focus is on identifying whether and how a combination would produce advantageous results and improved value for members of both organizations and the affordable-housing needs of their communities, while also supporting the ongoing strength of the Federal Home Loan Bank System," the statement said. The Dallas FHLBank reported that it had total assets of $53.3 billion as of March 31, with over 900 member institutions in Arkansas, Louisiana, Mississippi, New Mexico, and Texas. The Chicago FHLBank reported total assets of approximately $87 billion as of March 31 and over 850 member institutions in Illinois and Wisconsin. The Chicago bank can be found online at http://www.fhlbc.com, and the Dallas bank can be found at http://www.fhlb.com.