CIT Group Inc. (CIT) stock gained 10.13% after hours when the company announced receipt of regulatory merger approvals.
During the regular session, the stock was in the red at a loss of 3.40% at the closing value of $46.31 on Friday. Following the announcement, CIT became bullish in the after-hours to reach $51.00 on December 17.
Currently, the financial holding company, CIT Group Inc. has a market capitalization of $4.59 billion. Further, the company has 99.17 million shares outstanding in the market.
CIT’s Merger
On December 17, CIT and First Citizens BancShares Inc. (FNCA) that the Board of Governors of the Federal Reserve System has approved their merger. Moreover, the Federal Deposit Insurance Corporation and the Office of the North Carolina Commissioner of Banks have also approved the merger.
FNCA is also a financial holding company that has a network of branches in 19 states. Moreover, it is the parent company of First-Citizens Bank & Trust Company.
According to customary closing conditions and a 15-day waiting period, the merger is expected to complete in early January 2022. Furthermore, the merged company will retain the name First Citizens which will be a top 20 bank in the U.S. based on assets.
According to the companies, customers will face no sudden changes and can access their accounts like always. Moreover, they will be notified in advance if any changes were to occur to their accounts.
In addition, the chairpersons of both the companies shared their views and positive expectations of the merger.
Recent Developments
On December 16, CIT’s Healthcare Finance business arranged $34 million for refinancing the Enclaves at Chandler. CIT’s Healthcare Finance Business was the sole led arranger of the financing. The Enclaves at Chandler is a premier senior housing community in Chandler, Arizona. Further, this community is comprised of 89 independent living, 49 assisted living, and 24 memory care units.
Moreover, CIT provided the financing to Denver-based leading developer/operator of housing communities, Spectrum Retirement Communities, LLC.
CIT’s Financials
The company announced its third-quarter 2021 financial results on October 26, 2021. According to the results, CIT generated a net income of 173 million or a diluted net income of $1.72 per share in the third quarter of 2021. Further, the net income available to common shareholders, excluding noteworthy items, was $185 million. Consequently, the same was $1.84 per diluted common share in the third quarter of 2021.
