Modern Woodmen has decided to sell its bank. Thursday the fraternal financial services organization based in Rock Island announced an agreement with Axos Bank, based in San Diego.
Modern Woodmen spokeswoman, Sharon Snawerdt, says the bank opened in 2003, with just one "physical" location, in downtown Rock Island. Most of its business is conducted online, by mail, and by phone.
She says the board of directors decided to focus on insurance.
"Banking is a very different business model from insurance, with different regulatory requirements and risks. And that environment has really changed and intensified over the past eight years."
Axos will buy just the deposits of MWA Bank, now totalling 225 million dollars, and the sale could close by next Spring. Still to be decided, is what to do with the bank's loans and credit card operations.
The sale means 30 people will lose their jobs, but Snawerdt says they'll be eligible to apply for other Modern Woodmen jobs, plus will be offered outplacement services and severance packages.