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Anonymous ID: 7eaa15 Oct. 16, 2020, 6:58 a.m. No.11102393   🗄️.is 🔗kun

First Citizens BancShares, CIT Group To Combine In All-stock Merger Of Equals

 

First Citizens BancShares, Inc. (FCNCA), the parent company of First-Citizens Bank & Trust Company, and CIT Group Inc. (CIT), the parent company of CIT Bank, N.A., jointly announced Friday that they have agreed to combine in an all-stock merger of equals to create the 19th largest bank in the U.S., based on assets.

 

The merger will create a top-performing commercial bank with over $100 billion in assets and over $80 billion in deposits. It combines First Citizens' low-cost retail deposit franchise and full suite of banking products with CIT's national commercial lending franchise and strong market positions.

 

Under the terms of the deal, CIT stockholders will receive 0.0620 shares of

First Citizens class A common stock for each share of CIT common stock they own. First Citizens stockholders will own approximately 61% and CIT stockholders will own approximately 39% of the combined company. The merger, unanimously approved by the Boards of Directors of both companies, is expected to close in the first half of 2021, subject to satisfaction of customary closing conditions, including receipt of regulatory approvals and approval by the stockholders of each company. The combined company will operate under the First Citizens name and will trade under the First Citizens ticker symbol FCNCA on the Nasdaq stock market. The combined company will be headquartered in Raleigh, N.C.

 

Frank Holding, Jr., Chairman and CEO of First Citizens, will retain the same roles at the combined company. Ellen Alemany, Chairwoman and CEO of CIT, will assume the role of Vice Chairwoman and play a key role in the merger integration. In addition, she will serve on the Board of Directors of the combined company.

 

The Board of Directors of the combined company will consist of 14 directors, the current 11 First Citizens Board members and three CIT Board members, including Alemany. The transaction is targeted to deliver in excess of 50% EPS accretion once cost savings are fully phased in.

https://www.nasdaq.com/articles/first-citizens-bancshares-cit-group-to-combine-in-all-stock-merger-of-equals-quick-facts

 

Retail Banking is the primary deposit gathering business of CIT Bank and operates through a network of retail branches in Southern California, through its OneWest Bank division, and an online direct channel-brought to you by Munchkins as his crew of asset-stripping parasites.

 

On July 1, 2008, CIT Group announced that it would sell its home lending division to Lone Star Funds for $1.5 billion in cash and the assumption of $4.4 billion in debt and announced that it would sell its manufactured housing loan portfolio, with a face value of $470 million in loans, to Vanderbilt Mortgage and Finance for approximately $300 million.

 

In 2008, CIT became a bank holding company in order to receive $2.3 billion in Troubled Asset Relief Program (TARP) funds.

 

On July 15, 2009, CIT's request for Federal Deposit Insurance Corporation loan guarantees was rejected. At 6:03 PM, the company issued a press release stating that talks of a government bailout were unlikely and that the company had been advised that there was "no appreciable likelihood of additional government support being provided over the near term" and that it was very close to declaring bankruptcy.

 

On July 19, 2009, the company received a bailout via a $3 billion deal via an agreement with the bondholders group, which included Pacific Investment Management Company (PIMCO) and other large bond holders. CIT said it planned a comprehensive restructuring of its liabilities.

 

Effective July 24, 2009, CIT was removed from the S&P 500 Index.

https://en.wikipedia.org/wiki/CIT_Group