BofI Federal Bank, the banking subsidiary of Axos Financial, received regulatory approval from the Office of the Comptroller of the Currency to proceed with its purchase of certain assets and assumption of certain liabilities from Nationwide Bank.
The agreement includes approximately $3 billion in deposit liabilities and is expected to close no later than November 16, 2018.
“We are pleased to receive regulatory approval for this transaction in 45 days,” said Greg Garrabrants, BofI president and CEO. “Once completed and closed, the Nationwide Bank deposits will reduce our funding cost and strengthen our deposit franchise. We are excited to provide Nationwide Bank customers with a broad suite of products and enhanced technology and service capabilities.”
BofI expects to replace higher cost deposits and borrowings with the deposits assumed from Nationwide Bank.
BofI Federal Bank will become Axos Bank as of October 1, 2018 and will continue to provide financing for single and multifamily residential properties, small-to-medium size businesses in target sectors and selected specialty finance receivables. It has nearly $10 billion in assets.
