BofI strikes another unique deposit deal

BofI Holding in San Diego is buying $3 billion of deposits from the insurance giant Nationwide’s bank.

The deal includes nearly 100,000 deposit customers, $1 billion in checking, savings and money market accounts and $2 billion of time deposit accounts, the $10 billion-asset BofI said in a press release Friday. BofI’s bank had a loan-to-deposit ratio of roughly 101% at March 31, according to data from the Federal Deposit Insurance Corp.

Nationwide announced in May that it would exit the retail banking business and sell its deposits and loans. At March 31, Nationwide Bank, in Columbus, Ohio, had $7.1 billion of assets and $4.8 billion of deposits, according to data from the FDIC.

The deal is expected to close in the fourth quarter. BofI said it would pay for the deal using excess capital at its bank. A purchase price was not disclosed. The company expects the transaction to be immediately accretive to earnings and tangible book value.

BofI has previously completed a string of similar deals, including buying certain assets and liabilities from H&R Block Bank in 2015.