BofI Holding, Inc. (BOFI) (the “Company”), parent of BofI Federal Bank (“BofI” or the “Bank”), announced today that the Bank has signed a deposit purchase and assumption agreement (“DAA”) with Nationwide Bank to acquire approximately $3 billion in deposits from Nationwide Bank, including $1 billion in checking, savings and money market accounts and $2 billion in time deposit accounts. BofI and Nationwide Bank expect to receive regulatory approval and complete the deposit acquisition and transfer during the fourth quarter of 2018.
“We are excited to welcome Nationwide Bank’s nearly 100,000 deposit customers to BofI,” began Gregory Garrabrants, President and Chief Executive Officer of BofI Holding, Inc. “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 small business banking products and services once the transaction closes.”
“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,” said Terrance Williams, Chief Marketing Officer and President of Emerging Businesses for Nationwide. “Because of these similarities, as well as BofI’s depth of product offerings and history of successful transitions, we feel confident that it’s the right partner to provide banking services to our customers going forward.”
A deposit premium commensurate with the fair market value of the deposits purchased will be funded from excess capital at the Bank. The Company expects the transaction to be immediately accretive to earnings and tangible book value.
via Business Wire