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.

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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Accretive 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.