Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

CIT Surges as Merger with First Citizens Gets Fed Nod

Published 12/20/2021, 08:24 AM
Updated 12/20/2021, 08:25 AM
© Reuters
FCNCA
-
CIT
-

By Dhirendra Tripathi

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

At over $100 billion in assets and over $80 billion in deposits, the all-stock merger of regional heavyweights will create the 19th largest bank in the U.S., according to an October 16, 2020 release by CIT.

First Citizens has a robust low-cost retail deposit franchise while CIT is strong in commercial lending.

First Citizens stockholders will own around 61% and CIT stockholders nearly 39% of the combined company.

The banks expect the transaction to raise earnings per share by over 50% once cost savings are fully phased in.

The combined entity will operate under the First Citizens name and be based in Raleigh, North Carolina.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.