BofI Federal Bank has signed a deposit purchase and assumption agreement to acquire nearly $3bn in deposits from Nationwide Bank.
The deal is subject to regulatory approval. It includes $2bn in time deposits and $1bn in checking, savings and money market accounts.
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BofI Holding president and CEO Gregory Garrabrants said: “We are excited to welcome Nationwide Bank’s nearly 100,000 deposit customers to BofI.
“Our track record of successfully completing similar transactions with Principal Bank and H&R Block provide us with a high degree of confidence that we will have a seamless transition.
“We look forward to offering Nationwide Bank customers our full suite of consumer, commercial and SME products and services.
The company will fund the transaction from excess capital at BofI Federal Bank.
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By GlobalDataAccretive to earnings
BofI Federal expects that the acquisition will close in the fourth quarter and will be immediately accretive to its earnings.
Nationwide chief marketing officer and president of emerging businesses Terrance Williams said: “BofI is a strong and stable institution with many similarities to Nationwide Bank. Both companies are direct, digital banks with a customer-centric approach to banking.
“We feel confident that it’s the right partner to provide banking services to our customers going forward.”
Based in Ohio, Nationwide offers a diverse range of insurance and financial services.
