News Room
Mutual of Omaha Subsidiary To Acquire Nebraska State Bank
Omaha, Neb. – (June 29th, 2007) Omaha Financial Holdings, Inc., has reached a definitive agreement to acquire Midlands Financial Services, Inc., the holding company for Nebraska State Bank, the companies announced. The Omaha-based bank has three locations in the metro area.
The transaction is expected to be completed in 90 to 120 days, subject to closing conditions and necessary approvals. The financial terms of the transaction were not disclosed.
The Nebraska State Bank acquisition is the third announced recently 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.; and Security Federal Bank, a federally chartered savings bank based in Lincoln, Neb.
When the acquisition is final, Nebraska State Bank will become Mutual of Omaha Bank and its three locations will become branches of the Mutual of Omaha Bank main office, which will be located at 33rd and Farnam streets, said OFH President and CEO Jeff Schmid.
Founded in 1972 as Cornhusker Bank, it became Nebraska State Bank in 1979 and has grown into a full-service community bank. No changes are anticipated in the management or personnel at the bank.
The Nebraska State Bank acquisition is an important step in advancing Mutual of Omaha’s banking strategy, providing a strong, full-service presence in Omaha, Schmid said.
“Having a strong, full-service community bank in Omaha is the cornerstone of our banking strategy, and the acquisition of Nebraska State Bank is an integral step in implementing that strategy,” Schmid said. “It’s a well-managed community bank with excellent employees, a strong customer focus and three well-established locations in the Omaha metro area. We’re ready to focus on offering consumers and commercial customers the best banking experience in the city.”
Mutual of Omaha Bank President Mike Homa said the Nebraska State Bank acquisition gives his team an opportunity to deploy a full suite of commercial banking services. “This acquisition gives us a solid platform to emphasize commercial services such as cash management and commercial real estate lending through our flagship bank on the Mutual of Omaha campus as well as our branch locations,” Homa said.
Nebraska State Bank President Wayne Kehrli said his organization and Mutual of Omaha share similar business and customer service philosophies.
“Mutual of Omaha has a great vision for its expansion into banking, and we’re excited for our customers and employees to be part of the Mutual of Omaha organization. In my opinion, this is absolutely the best situation for our customers and employees,” Kehrli said.
The Nebraska State Bank 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.
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.