NCUA Clears Rare CU Merger
ALEXANDRIA, Va. - (07/21/06) -- NCUA announced Thursday it hasapproved the unprecedented merger of Nationwide FCU into a de novosaving bank created by insurance giant Nationwide FinancialServices. The decision, made in closed meeting Thursday by the NCUABoard, means the rare merger will now go to a vote by the membersof the $530 million credit union. Nationwide Bank, the start-upsavings bank, has agreed to pay the 44,000 members of the creditunion a total of $79 million for their equity, a 23% premium, andwill pay out the funds on a pro rata basis calculated by the amounteach member has on deposit. Under the deal, the 55-year-old willconvert to a mutual savings bank, then merge with what amounts to ashell, Nationwide Bank, which was chartered in April. A member voteon the credit union conversion is expected in the fall.