Axos Financial’s banking subsidiary BofI Federal Bank has secured regulatory approval to acquire $3bn of deposit liabilities of Nationwide Bank.
The approval, awarded by the Office of the Comptroller of the Currency (OCC), will enable BofI to advance with the definitive purchase and assumption transaction.
BofI announced this acquisition last month which includes $2bn in time deposits and $1bn in checking, savings and money market accounts.
Besides deposit liabilities, the agreement with Nationwide bank included the acquisition of certain assets and assumption of certain liabilities.
Commenting on the regulatory approval, BofI president and CEO Greg Garrabrants said: “We are pleased to receive regulatory approval for this transaction in 45 days.
“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.”
With this deposit acquisition assumed from Nationwide Bank, BofI expects to replace higher cost deposits and borrowings. It is scheduled to finance the transaction from its excess capital.
The transaction is expected to be completed by 16 November 2018.
BofI Federal Bank focuses on providing consumer and business banking products through its distribution channels and affinity partners. The company is said to have assets of nearly $10bn.