The Federal Home Loan Bank of Seattle and the Federal Home Loan Bank of Des Moines have entered into an exclusivity arrangement for a potential merger of the two banks, according to a joint announcement released today.

A merger would require approval from the Federal Housing Finance Agency, as well as member-owners of FHLB Des Moines and FHLB Seattle.

The merged bank would encompass more than 1,500 member-financial institutions in 13 states, American Samoa, Guam and the Commonwealth of the Northern Mariana Islands.

“Our organizations share similar values, member characteristics and corporate cultures,” said Richard Swanson, FHLB Des Moines president and CEO, in a statement.

“We believe that the members of both institutions stand to benefit from the financial strength and geographic reach of a combined institution, which would enable it to better fulfill its mission of funding the housing, economic and business development needs of its members and their communities.”