DALLAS, April 7, 2008 (PRIME NEWSWIRE) -- The Federal Home Loan Bank of Dallas announced today the termination of merger discussions with the Federal Home Loan Bank of Chicago.
After many months of extensive due diligence and analysis of the feasibility and potential benefits of combining the banks' business operations, the Dallas and Chicago Banks will not move forward with a merger transaction.
"There is a strong strategic fit between both banks' memberships. However, we have been unable to reach a definitive agreement with the Chicago Bank regarding the terms of a merger that would allow us to realize the desired benefits of a transaction for our members," said Terry Smith, the Dallas Bank's President and Chief Executive Officer.
"In light of the potential benefits that a transaction could have created for members of the two organizations, we are disappointed we could not reach a final agreement. The Dallas Bank will continue to explore opportunities that are designed to provide additional value for our members and to meet the affordable housing and economic development needs of the communities they serve. In the meantime, we will continue to work to deliver the value our members have come to expect from their membership in the Dallas Bank," explained Smith.
The Federal Home Loan Bank of Dallas is one of 12 district banks in the FHLBank System created by Congress in 1932. The Dallas Bank, with total assets of $63.6 billion as of December 31, 2007, is a member-owned cooperative that supports housing and community development by providing competitively priced loans and other credit products to more than 900 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico and Texas. For more information, visit the Bank's website at fhlb.com.
The Federal Home Loan Bank of Dallas logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3013