Axos Bank, the banking subsidiary of Axos Financial, Inc., announced that it has signed a deposit assumption agreement to acquire approximately $225 million of deposits, including approximately $194 million of checking, savings and money market accounts and $31 million 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 March 31, 2019.
“We are excited about the opportunity to provide comprehensive banking services to MWABank’s retail and business customers and fraternal chapters,” said Greg Garrabrants, President and Chief Executive Officer of Axos Financial, Inc. “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 has always made customer service its first priority,” says MWABank President and CEO Steve Ollenburg, “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.
About Modern Woodmen of America and MWABank
Since 1883, Modern Woodmen of America has brought people together, supported families and strengthened communities. As a fraternal financial services organization, Modern Woodmen exists for the benefit of our more than 750,000 members. Its 1,500 representatives in 56 regions operating throughout 47 states serve members by providing life insurance, annuities, investments and other financial planning products and services.
Started in 2003, MWABank is primarily a direct bank, one of the few direct banks in the United States. Of the life and property/casualty insurers in the United States, less than 40 have some type of banking charter. By direct bank, it defines itself as principally conducting business via the internet, mail, telephone and other electronic means.
About Axos Financial, Inc. and Axos Bank
Axos Financial, Inc. is the holding company for Axos Bank, a nationwide bank that provides consumer and business banking products through its low-cost distribution channels and affinity partners. With nearly $10 billion in assets, Axos Bank provides financing for single and multifamily residential properties, small-to-medium size businesses in target sectors, and selected specialty finance receivables.