NCUA Clears Rare CU Merger

ALEXANDRIA, Va. -- NCUA announced Thursday it has approved the unprecedented merger of Nationwide FCU into a de novo saving bank created by insurance giant Nationwide Financial Services. The decision, made in closed meeting Thursday by the NCUA Board, means the rare merger will now go to a vote by the members of the $530 million credit union. Nationwide Bank, the start-up savings bank, has agreed to pay the 44,000 members of the credit union a total of $79 million for their equity, a 23% premium, and will pay out the funds on a pro rata basis calculated by the amount each member has on deposit. Under the deal, the 55-year-old will convert to a mutual savings bank, then merge with what amounts to a shell, Nationwide Bank, which was chartered in April. A member vote on the credit union conversion is expected in the fall.