Nationwide Bank and Nationwide Federal Credit Union announce merger
Credit Union members vote to approve merger
FOR IMMEDIATE RELEASE
November 1, 2006
Eric Hardgrove 614-677-8516
Carah Brody 614-677-0275
Columbus, Ohio —Nationwide Bank and Nationwide Federal Credit Union (NFCU) today announced that the merger of the two organizations has been approved by NFCU membership. NFCU members approved the merger by a majority vote of 88.9 percent. In June, Nationwide Bank and NFCU announced their intention to seek member approval for a merger of the two organizations.
As previously announced, Nationwide Bank, a subsidiary of Nationwide Financial Services Inc., (NYSE:NFS), will pay $79 million for the members’ ownership interest in the credit union. These funds will be credited to member accounts on a pro-rata basis according to the deposit account balances as of March 31, 2006. The funding will take place after the transaction is complete, which is anticipated to happen in early 2007.
The transaction is subject to certification of the vote by the National Credit Union Administration and final regulatory approval from the Federal Deposit Insurance Corporation and the Office of Thrift Supervision.
“We’re pleased that the NFCU membership has approved this merger and look forward to serving these valued customers,” said Anne Arvia, Nationwide Bank president. “Nationwide Bank has an opportunity to create a unique customer experience, and NFCU’s history of exemplary service is key to serving customers.”
Nationwide will support the needs of its customers by complementing its insurance, mortgage, investment, and retirement plan products with banking capabilities through Nationwide Bank. Nationwide’s resources and wide customer base, combined with the credit union’s foundation of customer service, creates one strong financial institution.
“All along it was most important that the decision to merge be in the hands of the people who own this credit union – our members,” said Paula Edwards, president of NFCU. “The NFCU Board and I are very pleased that our membership has voted for this merger and we look forward to the opportunity that lies ahead as part of the Nationwide Bank.”
About Nationwide Federal Credit Union
Nationwide Federal Credit Union was established in 1951. NFCU is the largest credit union in Central Ohio ending 2005 with more than $523 million in assets. Serving more than 44,000 members, NFCU serves Nationwide associates, retirees, agents and their immediate family and household members. NFCU ranks as the fourth largest credit union in Ohio. 1
About Nationwide Bank
In April 2006, Nationwide Financial Services, Inc. received approval from U.S. regulators to expand the powers of its wholly-owned limited purpose thrift. Nationwide Bank will provide a full range of consumer banking products and services expanding the capabilities of Nationwide to serve its customers.
About Nationwide Financial®
Nationwide Financial Services, Inc. (NYSE: NFS), a publicly traded company based in Columbus, Ohio, provides a variety of financial services that help consumers invest and protect their long-term assets, and offers retirement plans and services through both public- and private-sector employers.2
It’s part of the Nationwide group of companies, which offers diversified insurance and financial services. The group is led by Nationwide Mutual Insurance Company, which is ranked No. 98 on the Fortune 100 based on 2005 revenue.3 For more information, visit www.nationwide.com.
1 as reported by CUNA and TFP
2 Nationwide Investment Services Corporation, member NASD. In Mi only, Nationwide Investment Svcs.Corporation.
3 Fortune Magazine, April 2006
Nationwide and the Nationwide Framemark are federally registered service marks of Nationwide Mutual Insurance Company. On Your Side is a service mark of Nationwide Mutual Insurance Company.