CIT Group to acquire Mutual of Omaha Bank for $1B
CIT Group and Mutual of Omaha announced a definitive agreement for CIT's banking subsidiary, CIT Bank, N.A., to acquire Mutual's savings bank subsidiary, Mutual of Omaha Bank, for a purchase price of $1B. The purchase price will be comprised primarily of cash and up to $150M of CIT common stock, the amount of which will be determined by CIT. The transaction will diversify and enhance CIT's funding profile with stable, lower-cost deposits from Mutual of Omaha Bank's market-leading homeowner's association, or HOA, banking business. In addition, it will advance CIT's strategic plan, extend its commercial banking capabilities and enhance profitability. The transaction includes $6.8B in deposits, $4.5B of which are HOA deposits from more than 31,000 community associations nationwide, and $2.3B of which are from commercial and consumer financial centers in key markets. In addition, $8.3B of total assets, including $3.9B of middle-market commercial loans, are part of the transaction, which adds to CIT's growing franchise. On a pro forma basis, CIT will have approximately $42.1B of total deposits and $58.9B of total assets.