CIT Group (CIT - Get Report) announced Tuesday a deal to buy Mutual of Omaha's savings bank subsidiary, Mutual of Omaha Bank, for $1 billion in cash and stock.

The transaction includes $6.8 billion in deposits, including $4.5 billion of homeowner association banking deposits, and $2.3 billion of commercial and retail deposits. An additional $8.3 billion of total assets, including $3.9 billion of middle-market commercial loans, are part of the transaction, the companies said.

On a pro forma basis, New York-based CIT will have approximately $42.1 billion of total deposits and $58.9 billion of total assets.

This #NationalOysterDay, we're reminded of how proud we are to support organizations like @BillionOyster who are working to restore NYC's harbors. pic.twitter.com/umIPXsmyDB

— CIT (@CITgroup) August 5, 2019

The transaction is expected to close in the first quarter of 2020, subject to regulatory approvals and other customary closing conditions. The agreement excludes Mutual's mortgage subsidiary, Synergy One Lending.

Shares of CIT Group were down 1.93% at $43.77 in morning trading on Tuesday. They ended the day Monday down 2.17% at $44.63.