News Room
Mutual of Omaha Subsidiary To Acquire Lincoln’s Security Federal Bank
May 9, 2007 – Omaha, Neb. – Omaha Financial Holdings, Inc., has reached a definitive agreement to acquire Security Federal Bank, a federally chartered savings bank based in Lincoln, Neb.
The transaction is expected to be completed in 120 to 150 days, subject to closing conditions and necessary approvals. The financial terms of the transaction were not disclosed.
The Security Federal acquisition is the second this month announced by Omaha Financial Holdings, a banking subsidiary established this year by Mutual of Omaha. The company also recently announced an agreement to acquire Peak National Bank, a community banking company based in Golden, Colo.
Founded in 1927, Security Federal specializes in real estate loans. It has two locations in Lincoln and one in Omaha. No changes are anticipated in the management or personnel at Security Federal.
The Security Federal acquisition is an important step in advancing Mutual of Omaha’s banking strategy, providing a robust lending operation, said OFH President and CEO Jeff Schmid.
“The acquisition of Security Federal provides our banking operation with expertise in mortgage lending, which we can extend to our other locations. It’s a well-managed bank with exceptional employees and a strong customer focus. Working together, we expect to see its operations become more full-service, which will serve the Lincoln community even better,” Schmid said.
Security Federal President Mike Fosdick said the acquisition will provide the bank with opportunities for new products and services.
“We believe that Security Federal has a great deal of potential and we are looking forward to working with Omaha Financial Holdings to develop into a full-service bank,” Fosdick said. “We believe this transaction will enable us to better serve our existing clients and add the products and services that will expand our customer base.”
The Security Federal acquisition is another key step in Mutual of Omaha’s banking strategy, which is to establish a network of community banks, open an Omaha-based bank on the Mutual of Omaha campus and launch a full-service internet bank, Schmid said.
“Security Federal is a well-managed, good-performing, respected community bank that fits into our overall strategy. That’s why we identified it as a good addition to our company,” Schmid said.
Mutual of Omaha formed Omaha Financial Holdings, Inc., in January of 2007 to pursue banking initiatives. Mutual of Omaha is a full-service, multi-line organization providing insurance and financial products for individuals, businesses and groups throughout the United States.