The insurance industry is slowly backing out of the retailbanking business, according to a report released Tuesday by SNLFinancial, and a series of upcoming M&A deals stands to furthershake up the industry.

According to the list assembled by SNL, USAA FederalSavings Bank, controlled by USAA, remains the largest insurer-ownedbank in the country with more than $65 billion in total assets,followed by State Farm Bank FSB at $17 billion and Mutual of OmahaBank at nearly $7 billion.

But Mutual of Omaha is in the midst of a reorganization thatmight threaten its place on that list. It will be selling off fiveof its branches in Colorado to focus its operations in the state atone “multifaced” location south of Denver.

“Our focus is on optimizing our physical presence in the marketsin which we do business,” bank spokesman Jim Nolan told SNL.“Mutual of Omaha Bank was formed in 2007 and much of its initialgrowth was through acquisition. As a result, we acquired branchesin locations that don't necessarily align with our strategy as inthe case of the Colorado Front Range branches. As the optimizationprocess continues, we may see changes in our network of physicallocations but we will continue to have a brick-and-mortar presencein our key markets.”

New Jersey Manufacturers Insurance Co. is going evenfurther, SNL said, and plans to voluntarily dissolve NJM Bank FSBonce its loan portfolio has been sold off and its depositstransferred to other banks.

Click chart to enlarge.

Click here to read the full report from SNL.