Axos Financial subsidiary Axos Bank signed a deposit assumption agreement to acquire approximately $225 million in deposits, including approximately $194 million in checking, savings and money market accounts and $31 million in time deposits, from MWABank.
Axos will not be assuming any assets, employees or branches in this transaction.
Pending receipt of required regulatory approvals, Axos and MWABank expect to complete the deposit acquisition and transfer by March 31, 2019.
“We are excited about the opportunity to provide comprehensive banking services to MWABank’s retail and business customers and fraternal chapters,” said Greg Garrabrants, president and CEO of Axos Financial. “Our digital consumer banking platform and service-oriented model are an ideal fit for MWABank’s model of providing high-touch services to clients across the country. We have a proven track record of ensuring a smooth client transition in these types of transactions. We expect this transaction to add thousands of new customers to the bank and further reduce our funding costs.”
“MWABank has always made customer service its first priority,” says MWABank President and CEO Steve Ollenburg, “So we were very careful to find a good home for our customers. We believe we’ve found that in Axos Bank.”
Axos will pay no deposit premium and replace higher cost funding with the acquired deposits at closing. The current weighted average annual interest rate paid on the acquired deposits is approximately 42 basis points.
Established in 1883, Modern Woodmen of America is a fraternal financial services organization which represents more than 750,000 members. Started in 2003, its bank, MWABank, serves primarily as a direct bank, principally conducting business via the internet, mail, telephone and other electronic means. It has one traditional banking location in the Illinois Quad Cities.
Axos Bank provides consumer and business banking products through its low-cost distribution channels and affinity partners. With nearly $10 billion in assets, Axos Bank provides financing for single and multifamily residential properties, small-to-medium size businesses in target sectors and selected specialty finance receivables.