Nationwide selling $3B in its bank’s deposits

Nationwide has taken a big step as part of its plan to get out of the retail banking business.

The insurer said Friday that it is selling $3 billion in deposits at Nationwide Bank to BofI Holding, the parent of BofI Federal Bank, in a deal that is expected to close before the end of the year. The sales price was not disclosed.

Nationwide said in May that it has decided to move away from operating as a fullservice, federally-chartered retail bank where customers have checking and savings accounts and other products. Instead, it will focus on its operations that support the 18,500 401(k) retirement plans it manages.

BofI Federal Bank, based in San Diego, is a nationwide bank that provides financing for single-family and multifamily residential properties and small and medium-sized business in certain target areas.

The sale affects about 100,000 customers.

“BofI is a strong and stable institution with many similarities to Nationwide Bank. Both companies are direct, digital banks with a customer-centric approach to banking,” said Terrance Williams, chief marketing officer and president of emerging businesses for Nationwide, in a statement.

“Because of these similarities, as well as BofI’s depth of product offerings and history of successful transitions, we feel confident that it’s the right partner to provide banking services to our customers going forward.”

The sale covers retail deposits such as checking, savings and money-market accounts. Nationwide said it continues to look at options for other parts of the banking business, including other deposits and lending assets such as credit cards, that aren’t needed to support its retirement plans.

Nationwide has previously said the decision to exit the retail-banking business affects about 240 workers.

Nationwide said Friday’s news does not have effect on those workers. In other instances, Nationwide has worked to find workers affected by the kinds of moves other jobs with the company. Hundreds of people have reported that they became ill after eating at the Sawmill Road Chipotle in Powell. The cause still isn’t known, but no new cases have been reported since the restaurant reopened on Tuesday.