BofI Federal Bank said Aug. 3 its parent company BofI Holding Inc. (Nasdaq: BOFI) had agreed to acquire about $3 billion in deposits from Nationwide Bank, a Fortune 100 company based in Ohio that is exiting the retail banking business.
The news comes about one week after BofI pushed back a quarterly earnings call, slated for July 26, to Aug. 7, citing a pending acquisition.
As of the end of the first quarter of 2018, according to the Federal Deposit Insurance Corp. (FDIC), BofI had $8 billion in deposits. Acquiring the Nationwide deposits would boost that total by more than one-third.
The acquisition includes $2 billion in term deposits and $1 billion in checking, savings and money market accounts, the banks said.
Nationwide announced in May it planned to transfer its deposits, which totaled about $4.8 billion as of March 31, according to the FDIC, to other institutions.
Pending regulatory approval, nearly 100,000 Nationwide customers will move to BofI, the banks said.
BofI and Nationwide anticipate the deal to close in the fourth quarter.
It's not the first time BofI, which launched in 1999, has acquired deposits from another bank. In 2013 it acquired $173 million from Principal Bank.
BofI, with about $9.5 billion in assets, saw its stock price rise nearly 5 percent on the news to $41.60 as the end of the trading day neared from $39.64 at market close Aug. 2.
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