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BofI Federal Bank to buy deposits of Union Federal Savings Bank

BofI Federal Bank has agreed to acquire $125m of deposit accounts of Union Federal Savings Bank.

The accounts include individual checking, money market savings, and CD accounts.

Under the purchase and assumption agreement executed December 19, 2014, BofI Federal Bank will receive approximately $125 million in cash at the closing date and will assume Union’s deposits at par with no purchase premium and a weighted-average interest rate below BofI Federal’s current average deposit interest rate.

This proposed transaction includes only deposits and cash; and no loans, securities or other assets, liabilities or equity of Union will be transferred.

"This low-cost acquisition of more than 2,000 nationwide consumer money market deposit accounts will continue to build our core checking, savings and money market funding which represented 77% of our total deposit balances at September 30, 2014," stated Greg Garrabrants, President and Chief Executive Officer of BofI Federal Bank. Mr. Garrabrants continued, "We anticipate that this transaction will close in the second calendar quarter of 2015 and believe that the timing will not impact our bank’s pending transaction with H&R Block Bank."

The announcement of the transaction with Union and the previously announced transaction with H&R Block Bank are subject to separate approvals by the Office of the Comptroller of the Currency and to other customary closing conditions.