First Citizens and CIT to merge in all-stock deal that will create 19th biggest U.S. bank by assets

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First Citizens BancShares Inc. and CIT Group Inc. said Friday they have agreed to an all-stock merger of equals that will create the 19th biggest bank in the U.S. by assets. Under the terms of the agreement, CIT shareholders will receive 0.0620 shares of First Citizen stock for each share owned. First Citizens shareholders will own 61% of the combined entity, with CIT shareholders owning the remaining 39%. “The transaction brings together the complementary strengths of First Citizens’ low-cost retail deposit franchise and full suite of banking products with CIT’s national commercial lending expertise and strong market positions,” the companies said in a joint statement. The new bank will be based in Raleigh, North Carolina and First Citizen’s chairman and chief executive will retain both roles, while CIT Chairwoman and CEO Ellen Alemany will assume the role of vice chairwoman. The company will trade on Nasdaq, under the ticker “FCNCA.” The new bank will have more than $100 billion in assets and more than $80 billion in deposits. The banks are expecting to boost EPS by 50% once cost savings have been completed. The deal is expected to close in the first half of 2021. First Citizens shares were slightly lower premarket, while CIT shares jumped 8%.
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