Focusing on Insurance, Mutual of Omaha Selling Bank to CIT

CIT Group is buying Mutual of Omaha Bank for $1 billion to expand its commercial banking operations.

The deal would mean the end to Nebraska-based Mutual of Omaha’s foray into the banking sector, initiated in 2007. CEO James Blackledge said that the deal will allow Mutual to focus more on in its core insurance businesses.

About $4.5 billion of Mutual of Omaha’s $6.8 billion in deposits come from homeowners’ associations and other community groups nationwide.

Mutual of Omaha Bank, based in Omaha, Nebraska, has 26 branches mostly across Western states and Plains.