Section II

Mutual of Omaha Bank was founded in 2007; it was spun off its family

company Mutual of Omaha. Having the backing of such a strong company made their

entry into the market much easier than some other banks could have experienced,

especially since they opened up during the economic crash. During the crash the

bank was able to grow expansively by acquiring the following banks: Nebraska State

Bank in Omaha, Nebraska; Security Federal Bank in Lincoln, Nebraska; Peak

National Bank in Golden, Colorado; First Heritage Bank in Newport Beach, CA; First

National Bank of Arizona in Scottsdale, Arizona; and Marco Community Bank in

Florida. Mutual of Omaha Bank currently has 915 employees spanning: Nebraska,

Arizona, California, Colorado, Florida, Hawaii, Iowa, Kansas, Missouri, Nevada and

Texas.

The market share has been growing steadily since the banks inception in

2007. With a focus on making the banking experience a positive one for the

customers, Mutual of Omaha Bank has seen a good response from customers.

According to the FDIC deposit market share report, as of June 30th 2014, Mutual of

Omaha Bank was just second in market share with over 3.5 billion dollars in

deposits and over 16.05% of the market share for deposits.

Looking over many of the financial reports that were found using multiple

resources it was determined that Mutual of Omaha Bank is a bank that specialized in

real estate loans.. The following information is what was discovered when

researching the portfolio of loans that Mutual of Omaha has done.

 Assets: Dec 2014 Weights:

Real Estate Loans 3,859,949 0.77

Commercial Loans 825,223 0.17

Individual Loans 63,850 0.01

Agricultural Loans 0 0.00

Other LN&LS in Domestic Offs. 301,632 0.06

LN&LS in Foreign Offices N/A

Loans Held for Sale 419

Loans not Held for Sale 5,050,235

LN&LS Allowance 60,604

Net Loans & Leases 4,990,050 1.00

As it appears the bank has over 75 percent of their portfolio located in the

real estate loans and another 17 percent in commercial loans. By having a majority

of their loan in the real estate section they are taking some risk when it comes to if

the economy runs into trouble again, but like the 2007-2008 crisis they should be

able to weather the storm due to the diversification around the United States. They

are also taking a larger risk when it comes to having too much invested into one

section of a business. There might be some issues if problems arise in the real estate

loan market since over 75% of their portfolio is located there.

 Assets: Dec 2014 Weights:

Real Estate Loans 3,859,949 0.62

Commercial Loans 825,223 0.13

Individual Loans 63,850 0.01

Agricultural Loans 0

Other LN&LS in Domestic Offices 301,632

LN&LS in Foreign Offices N/A

Loans Held for Sale 419

Loans not Held for Sale 5,050,235

LN&LS Allowance 60,604

Net Loans & Leases 4,990,050 0.80

U.S. Treasury & Agency Securities $760,516.00 0.12

Municipal Securities $45,098.00 0.01

Foreign Debt Securities $0.00

All Other Securities $292,279.00 0.05

Interest-Bearing Bank Balances $171,114.00 0.03

Federal Funds Sold & Resales $0.00

Trading Account Assets $0.00

Total Investments $1,269,007.00

Total Earning Assets $6,259,057.00 1.00

Here it is shown the weights between each type of loans that the bank offers

in relation to the given weight of the earning assets. The real estate loans account

for 62 percent of the earning assets and the commercial and individual loans

combined to account for about 14 percent of the earning assets.

Another thing of interest was looking at how much the bank makes from the

interest and fee associated with loans, and how much they make from the non-fee
income. By examining the income statement we are able to see that the interest

income comes out to be about 225 million dollars and the non-interest income was

about 35 million dollars. This was on par with expectation since during our

interview; Mr. Homa mentioned that they don’t really generate much money from

non-fee based income.