Nationwide Bank and FCU announce merger approval

WASHINGTON (7/21/06)--Nationwide Federal Credit Union (NFCU) and Nationwide Bank announced Thursday that the National Credit Union Administration (NCUA) approved their application to merge, according to PR Newswire.

The decision would enable the credit union to now seek its membership's agreement for the transaction, and the announcement noted that the vote is anticipated for the fall.

Nationwide FCU President/CEO Paula A. Edwards sent a letter to members mid-June announcing the Columbus, Ohio credit union's intention to seek member approval to merge with the newly chartered Nationwide Bank.

As reported by News Now, the proposed direct merger plan offers all members payment for their ownership interest in the credit union plus a premium.

Nationwide has offered to pay $79 million for the members' ownership interest, which would be distributed to all members on a pro-rata basis according to deposit account balances as of March 31, 2006. For example, a member with $1,000 in their account as of that date will receive a payment of approximately $150 for their ownership interest. (CUNA News Now)