Mutual of Omaha acquires bank |
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Wed, 09 May 2007 18:44
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OMAHA, Neb. (AP) - Mutual of Omaha's banking subsidiary has made a deal to buy a Colorado banking company.Peak National Bank will be Mutual's first acquisition since it established Omaha Financial Holdings earlier this year.Peak National, which is based in Golden, Colo., operates seven branches in suburban Denver. The nationally chartered bank was established in 1986 and currently reports $215 million in assets.In a news release, Omaha Financial President Jeff Schmid said the acquisition advances Mutual of Omaha's banking initiative and gives Peak greater financial resources and new opportunities for growth.Terms were not disclosed. The deal was expected to be completed in 120 to 150 days.No significant changes in management or staffing were expected at Peak National Bank.Schmid said the purchase of Peak National is a key step in Mutual of Omaha's strategy to establish a network of community banks, open an Omaha bank on the Mutual of Omaha campus and start an Internet bank.In January, Mutual announced that it was expanding its financial kingdom outside the realm of insurance.Schmid said at the time that the bank subsidiary would be a base for extending electronic banking services across the country and could potentially market such services to Mutual's insurance customer base.About three dozen U.S. insurance companies have made similar moves in recent years.Last month Mutual of Omaha announced that it would sell its group health insurance business to Coventry Health Care of Maryland for $120 million and that Mutual would no longer offer major medical insurance.Mutual's chief executive Dan Neary said Mutual decided to sell the health business because it didn't have enough customers to negotiate competitive discounts with doctors and hospitals outside of Nebraska and Iowa.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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