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COLUMBUS, Ohio – In a move which many CU advocates may consider a model way to convert a credit union to a mutual bank, the $586 million Nationwide Federal Credit Union has announced that it will seek to merge with Nationwide Bank. Nationwide Bank is a newly chartered subsidiary of the Nationwide Financial Services Group, which is also the credit union’s sole sponsor. All of the CU’s 44,000 members are either employees of the insurance group or their families. Under the terms of the deal, which is still only being discussed with and explained to the CU’s members, the Nationwide Financial Group will pay the members of the CU, on a pro-rata basis, $79 million for their collective $65 million in retained earnings in the CU, a 17% premium.

The pro-rata payments will be made based upon members’ accounts as of March 31, 2006. The CU offered, as an example, that someone with $1,000 on deposit would receive a payment of about $150.

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