SAN DIEGO--(BUSINESS WIRE)--Axos Bank (“Axos” or the “Bank”), the banking subsidiary of Axos Financial, Inc. (NYSE: AX), announced that it has signed a deposit assumption agreement (“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. For more information, visit https://www.modernwoodmen.org/.
*Securities offered through MWA Financial Services Inc., a wholly owned subsidiary of Modern Woodmen of America.
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. It has one traditional banking location in the Illinois Quad Cities. For more information, visit https://www.mwabank.com.
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. Axos Financial, Inc.’s common stock is listed on the NYSE under the symbol “AX” and is a component of the Russell 2000® Index and the S&P SmallCap 600® Index. For more information about Axos Bank, please visit https://www.axosbank.com.
Forward-Looking Safe Harbor Statement
This press release contains forward-looking statements that involve risks and uncertainties, including without limitation statements relating to the projections of Axos Bank and Axos Financial’s performance and ability to replace higher cost funding sources and reduce interest costs. These forward-looking statements are made on the basis of the views and assumptions of management regarding future events and performance as of the date of this press release. Actual results and the timing of events could differ materially from those expressed or implied in such forward-looking statements as a result of risks and uncertainties, including without limitation changes in interest rates, inflation, government regulation, general economic conditions, conditions in the real estate markets in which we operate and other factors beyond our control. These and other risks and uncertainties detailed in Axos Financial’s periodic reports filed with the Securities and Exchange Commission could cause actual results to differ materially from those expressed or implied in any forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and Axos Financial undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.