Mutual of Omaha Bank opened 15 Arizona branches July 28, including 6298 E. Grant Road and 10195 N. Oracle Road, after taking over the deposits from failed 1st National Bank of Arizona that was shut down July 25 by the Federal Deposit Insurance Corp.
The changeover appeared to go smooth with Mutual of Omaha keeping frontline employees.
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Jeff Schmid, chief executive of Mutual of Omaha Bank, said all deposits, including those exceeding FDIC standards, were safe and available to customers.
The failure of 1st National Bank of Arizona was blamed on its heavy focus on construction loans to home builders and $2.3 billion worth of high-interest rate mortgage loans issued in 2006.
1st National Bank of Arizona was part of 1st National Bank of Nevada, a Reno-based unit of closely held First National Bank Holding Co., Scottsdale. The holding company also owned 1st Heritage Bank, Newport Beach, Calif., which also became part of Mutual of Omaha Bank.
The closed banks were in no way connected to National Bank of Arizona,
Nebraska-based Mutual of Omaha has been in the insurance business for 99 years and started the bank last year. Prior to last week it had 14 retail branches in Nebraska and Colorado. Taking over 1st National added 30 locations.
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