OMAHA, Neb. (AP)-- CIT Group is buying Mutual of Omaha Bank for $1 billion to expand its commercial banking operations.
The deal would mean the end to the Mutual of Omaha's foray into the banking sector, initiated in 2007.
About $4.5 billion of Mutual of Omaha's $6.8 billion in deposits come from homeowners' associations and other community groups nationwide.
CEO James Blackledge said Tuesday that the deal will allow Mutual to focus more on its core insurance businesses.
Mutual of Omaha Bank, based in Omaha, Nebraska, has 26 branches mostly across Western states and Plains and about 850 employees, not counting those the mortgage operation Mutual of Omaha will retain.
"We think this transaction is a strategic win for both Mutual of Omaha’s policyholders and the Bank. It provides additional capital and flexibility to support Mutual’s customer-focused strategy and initiatives while allowing the Bank to pursue growth in its markets by leveraging CIT’s resources and complementary business profile," wrote Jim Nolan with Mutual of Omaha.