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.
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.