Internet First: Online Bank Takeover

NEW YORK — In what is being billed as the first Internet bank takeover, NetBank on Thursday announced that it was purchasing all of the deposit accounts of CompuBank.

D.R. Grimes, chief executive of NetBank, said the move would add more than 50,000 accounts to his bank’s 170,000 total. “It very well could be the first Internet bank takeover,” Grimes said. “That makes it exciting for us.” He declined to disclose the terms of the deal.

Frank Goldberg, chairman and chief executive of CompuBank, a privately held bank based in Houston, confirmed the sale. He said CompuBank laid off about a third of its 200 workers on Thursday and that most of the rest would work short-term on transferring customer accounts to NetBank. Asked what would happen to CompuBank, he said: “There is no definite plan right now.”

NetBank, based in the Atlanta suburb of Alpharetta, has been in operation since July 1997. Its assets at the end of 2000 totaled $2 billion.

(Copyright 2001 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.)

Publish date: March 30, 2001 © 2020 Adweek, LLC. - All Rights Reserved and NOT FOR REPRINT