The banking sector has undergone significant consolidation in recent years as institutions seek to improve operational efficiency, expand digital capabilities, and strengthen their financial positions. One notable development is the merger between CIT Group Inc., the parent company of CIT Bank, N.A., and First Citizens BancShares, Inc., parent of First Citizens Bank.
This merger has reshaped the competitive landscape by combining two established banks into a more diversified and robust institution. This article provides a detailed overview of the CIT Bank merger, its timeline, strategic objectives, impact on customers, and future outlook.
Timeline and Key Milestones
The merger was announced on October 16, 2020, and officially completed on January 3, 2022. The transaction resulted in CIT Bank, N.A. merging into First-Citizens Bank & Trust Company, with all operations now conducted under the First Citizens Bank brand.
Regulatory approvals were secured after thorough review by the Federal Reserve and other governing bodies, enabling a smooth transition.
Strategic Rationale for the Merger
The decision to merge was driven by several key strategic objectives:
- To create a larger, financially stronger institution with enhanced capital resources.
- To expand geographic reach and access new markets.
- To combine CIT’s expertise in commercial and online banking with First Citizens’ extensive retail banking network.
- To leverage operational efficiencies and drive long-term shareholder value.
This consolidation positioned First Citizens as one of the largest family-controlled banks in the United States, poised for sustained growth.
Customer Impact and Benefits
For customers of both institutions, the merger has brought several advantages:
- Brand Transition: CIT Bank accounts have been transitioned to the First Citizens Bank brand. Communications, statements, and digital platforms now reflect this change.
- Account Continuity: Existing accounts including savings, checking, certificates of deposit, and loans continued without interruption. Customers were provided with timely information regarding any changes to account access or terms.
- Expanded Offerings: Customers now have access to a broader range of products and services including wealth management, mortgage lending, and enhanced business banking solutions.
- Improved Access: First Citizens operates over 500 branches nationwide, providing customers with increased physical banking options along with an upgraded digital banking experience.
Financial and Market Impact
Prior to the merger, CIT Group held approximately $60 billion in assets, while First Citizens had around $110 billion. Post-merger, the combined entity commands assets exceeding $200 billion, positioning it among the top 20 largest banks in the United States.
The enhanced asset base supports more competitive pricing, expanded lending capacity, and greater resilience against economic fluctuations.
Post-Merger Product Portfolio
The merger retained CIT Bank’s popular online banking products, such as high-yield savings accounts, money market accounts, and certificates of deposit, now offered through First Citizens’ online division.
Customers continue to benefit from competitive interest rates, FDIC insurance protection, and user-friendly digital banking tools.
Regulatory and Legal Framework
The transaction was structured as an all-stock deal and complied with all applicable regulatory requirements. First Citizens BancShares, Inc. remains the publicly traded holding company, trading under the ticker symbol FCNCA.
Outlook and Future Developments
Looking ahead, the combined institution plans to continue investing in:
- Digital transformation to enhance customer experience.
- Expansion of small business and commercial lending.
- Strengthening cybersecurity and compliance measures.
- Exploring opportunities for further strategic growth.
First Citizens remains committed to delivering seamless banking solutions that combine innovation with trusted service.
Frequently Asked Questions
Is CIT Bank still operational?
CIT Bank, N.A. has been merged into First-Citizens Bank & Trust Company and no longer operates as a separate entity. Customers now bank under the First Citizens Bank name.
Do customers need to open new accounts?
Most customers were transitioned automatically. Any required steps were communicated in advance.
Are deposits still FDIC insured?
Yes, deposits remain insured up to $250,000 per depositor, per account category.
Has there been a change in fees or rates?
Products remain competitively priced. Customers should review current terms on First Citizens’ official website.
Conclusion
The CIT Bank merger with First Citizens Bank represents a strategic consolidation that enhances financial strength, broadens product offerings, and improves customer access. The combined institution is well-positioned to meet evolving customer needs and compete effectively in the dynamic banking industry.
For existing CIT Bank customers and prospective clients, this merger offers a seamless transition with access to expanded resources and services under a trusted brand.