BOFI announces acquisition

BofI is paying no deposit premium to take over about $125M of deposit accounts from Union Federal Savings Bank. The deal is expected to close in Q2, and shouldn’t impact the pending agreement with H&R Block Bank.…



They entered into a purchase and assumption agreement with Union Federal Savings Bank, to assume approximately $125 million of deposit accounts including individual checking, money market savings, and CD accounts from Union. BofI will receive approximately $125 million in cash at the closing date and will assume Union’s deposits at par with no purchase premium and an average interest rate below BofI’s current average deposit interest rate. This proposed transaction includes only deposits and cash; and no loans, securities or other assets 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. We anticipate that we 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.”


It appears good for BOFI but not so good for FMD which I own from Bill Mann pick. FMD has been trying to sell them for some time now. is this good for FMD?


is this good for FMD?

Yes! The bank was a misadventure of the previous CEO who bought it under false pretenses. Try as they might, First Marblehead could not find a buyer for the bank and decided to shut it down. They sold the loans and now the deposits. Now First Marblehead can go back to being in the student loan service business.

Denny Schlesinger