Get breaking news alerts via email

Click here to manage your alerts
CIT Group buying OneWest Bank in $3.4B deal
Acquisitions » New Jersey-based CIT Group acquiring 73 banks in southern California.
First Published Jul 22 2014 09:49 am • Last Updated Jul 22 2014 09:49 am

New York • CIT Group will buy privately owned OneWest Bank in a $3.4 billion cash-and-stock deal.

OneWest, a regional bank whose parent company is IMB Holdco LLC, runs 73 retail branches in southern California. IMB shareholders will receive $2 billion in cash and 31.3 million CIT Group shares currently valued at $1.4 billion.

Join the Discussion
Post a Comment

OneWest will merge with CIT Group’s banking subsidiary CIT Bank, and all locations will operate under the CIT Bank sign. The deal is expected to add 20 percent to CIT Group’s 2016 earnings per share.

The boards of both companies have approved the sale. CIT Group’s board will increase from 13, to 15 directors.

CIT Group reported its second-quarter financial results on Tuesday. For the period ended June 30, the company earned $246.9 million, or $1.29 per share. That’s up from $183.6 million, or 91 cents per share, a year earlier.

Earnings from continuing operations were $1.02 per share.

Analysts surveyed by FactSet expected earnings of 86 cents per share.

Noninterest income, which comes from fees and other items, climbed to $613.3 million from $563.5 million. Non-accrual loans, or loans that are past due and in danger of default, dropped to $190 million from $279 million due to the sale of the small business lending portfolio.

CIT Group Inc., based in Livingston, N.J., also announced that its board has approved the repurchase of up to $500 million shares of its common stock through June 30, 2015. The company said it has repurchase $745 million of its stock since May 30, 2013. It has about $55 million left under previously authorized repurchase programs.

Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment

About Reader Comments

Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.