Stock Groups

CIT Surges as Merger with First Citizens Gets Fed Nod -Breaking


© Reuters

By Dhirendra Tripathi

Investing.com – CIT Group stock (NYSE:) climbed 10% in Monday’s premarket after its proposed $2-billion merger with First Citizens BancShares (NASDAQ:) got the Federal Reserve’s approval.

CIT released an October 16, 2020 report stating that the bank will be the 19th-largest in America, with assets of over $100 trillion and deposits in excess of $80 billion.

First Citizens is a solid low-cost retailer deposit franchise. CIT, on the other hand, has strong commercial lending.

First Citizens stockholders own approximately 61%, and CIT stockholders almost 39% of the combined business.

Once cost savings have been fully phased into the process, banks anticipate that this transaction will increase earnings per share by more than 50%.

The new entity will operate as First Citizens, and it will be based out of Raleigh in North Carolina.

 

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Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.