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CIT Buys Mutual Of Omaha For $1B

Tanzeel Akhtar

CIT Group Inc. (NYSE: CIT) and Mutual of Omaha will acquire Mutual's savings bank subsidiary, Mutual of Omaha Bank, for $1 billion.

The purchase price will be comprised primarily of cash and up to $150 million of CIT common stock, the amount of which will be determined by CIT.

The transaction includes $6.8 billion in deposits, $4.5 billion of which are HOA deposits from more than 31,000 community associations nationwide, and $2.3 billion of which are from commercial and consumer financial centers in key markets.

In addition, $8.3 billion of total assets, including $3.9 billion 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 $42.1 billion of total deposits and $58.9 billion of total assets.

CIT Group shares closed Monday down 2.17% at $44.63. The stock has a 52-week high of $55.48 and a 52-week low of $35.50.

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