Axos Financial’s banking subsidiary Axos Bank has agreed to acquire to acquire about $225m of deposits from MWABank.
Image: Axos Bank to acquire MWABank’s deposits. Photo: Courtesy of adamr at FreeDigitalPhotos.net
The deal includes approximately $194m of checking, savings and money market accounts and $31m of time deposits, from MWABank.
Axos is not 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 31 March next year.
Axos Financial president and CEO Greg Garrabrants said: “We are excited about the opportunity to provide comprehensive banking services to MWABank’s retail and business customers and fraternal chapters.
“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 president and CEO Steve Ollenburg said: “MWABank has always made customer service its first priority, 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.
Source: Company Press Release