- CIT’s Total Assets Increase to More
Than $65 Billion; Total Deposits Increase to More Than $30
Billion1
- Combines CIT’s National Lending
Platform with OneWest’s Regional Branch Banking Network
CIT Group Inc. (NYSE: CIT), a leading provider of
commercial lending and leasing services, today announced that it
has completed its previously announced acquisition of IMB Holdco
LLC, the parent company of OneWest Bank N.A. (OneWest Bank) for
approximately $3.4 billion in cash and stock. The transaction,
first announced on July 22, 2014, has received all required
regulatory approvals.
“The completion of this transaction advances our strategic
efforts to build a leading commercial banking franchise,” said John
A. Thain, Chairman and Chief Executive Officer of CIT. “Through the
combination of our national lending and leasing platform with
OneWest’s wholesale lending and branch banking franchise, we’ve
created a differentiated provider of banking services for small and
middle market businesses. I look forward to working with our newest
colleagues as we integrate our two organizations, serve the needs
of our customers and communities and realize the benefits of this
transaction for our shareholders.”
The combined company, CIT Group Inc., has more than $65 billion
in assets and more than $30 billion of deposits.1 As part of the
transaction, CIT Bank merged with and into OneWest Bank, which was
renamed CIT Bank, N.A. CIT Bank, N.A. operates an Internet banking
franchise, as well as a network of 70 retail branches throughout
Southern California as OneWest Bank, a division of CIT Bank,
N.A.
CIT Group Inc. will continue to be led by John A. Thain,
Chairman and Chief Executive Officer. Steven T. Mnuchin, former
Chairman of IMB Holdco LLC, joined CIT Group Inc. as Vice Chairman
and a member of its Board of Directors. In addition, Al Frank, a
former independent director of OneWest Bank, joined the CIT Board,
which increased its size from 13 to 15 members.
Under the terms of the transaction, IMB Holdco LLC shareholders
received approximately $1.867 billion in cash and approximately
30.9 million shares of CIT, as well as approximately 168,000
restricted stock units of CIT.
J.P. Morgan Securities LLC served as financial advisor to CIT,
and Wachtell, Lipton, Rosen & Katz served as CIT’s legal
counsel. Goldman, Sachs & Co., Bank of America Merrill Lynch
and Cleary, Gottlieb, Steen & Hamilton LLP represented IMB
Holdco LLC. Sullivan & Cromwell served as joint regulatory
counsel for CIT and IMB Holdco LLC.
(1) Pro forma financial data based on unaudited CIT and OneWest
data as of March 31, 2015.
About CIT
Founded in 1908, CIT (NYSE: CIT) is a financial holding company
with more than $65 billion in assets. Its principal bank
subsidiary, CIT Bank, N.A., (Member FDIC, Equal Housing Lender) has
more than $30 billion of deposits and more than $40 billion of
assets. It provides financing, leasing and advisory services
principally to middle market companies across more than 30
industries primarily in North America, and equipment financing
and leasing solutions to the transportation sector. It also offers
products and services to consumers through its Internet bank
franchise and a network of retail branches in Southern California,
operating as OneWest Bank, a division of CIT Bank, N.A. cit.com
Forward-Looking Statements
This press release contains forward-looking statements
within the meaning of applicable federal securities laws that are
based upon our current expectations and assumptions concerning
future events, which are subject to a number of risks and
uncertainties that could cause actual results to differ materially
from those anticipated. The words “expect,” “anticipate,”
“estimate,” “forecast,” “initiative,” “objective,” “plan,” “goal,”
“project,” “outlook,” “priorities,” “target,” “intend,” “evaluate,”
“pursue,” “commence,” “seek,” “may,” “would,” “could,” “should,”
“believe,” “potential,” “continue,” or the negative of any of those
words or similar expressions is intended to identify
forward-looking statements. All statements contained in this press
release, other than statements of historical fact, including
without limitation, statements about our plans, strategies,
prospects and expectations regarding future events and our
financial performance, are forward-looking statements that involve
certain risks and uncertainties. While these statements represent
our current judgment on what the future may hold, and we believe
these judgments are reasonable, these statements are not guarantees
of any events or financial results, and our actual results may
differ materially. Important factors that could cause our actual
results to be materially different from our expectations include,
among others, the risk that (i) there are difficulties and delays
in integrating OneWest with CIT or fully realizing projected cost
savings and other projected benefits of the transaction, (ii)
business disruption during the pendency of or following the
transaction, including diversion of management time, reputation
risk, and the reaction of customers and counterparties to the
transaction, (iii) changes in asset quality and risk as a result of
the transaction, (iv) CIT is unsuccessful in implementing its
strategy and business plan, (v) CIT is unable to react to and
address key business and regulatory issues, and (vi) changes in
general economic conditions, including changes in interest rates
and capital markets. CIT describes these and other risks that could
affect its results in Item 1A, “Risk Factors,” of CIT’s latest
Annual Report on Form 10-K for the year ended December 31, 2014,
which was filed with the Securities and Exchange Commission.
Accordingly, investors should not place undue reliance on the
forward-looking statements contained in this press release. These
forward-looking statements speak only as of the date on which the
statements were made. CIT undertakes no obligation to update
publicly or otherwise revise any forward-looking statements, except
where expressly required by law.
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version on businesswire.com: http://www.businesswire.com/news/home/20150803005417/en/
CIT MEDIA RELATIONS:C. Curtis RitterSenior Vice President
of Corporate Communications(973) 740-5390Curt.Ritter@cit.comorMatt
KleinVice President, Media Relations(973)
597-2020Matt.Klein@cit.comorCIT INVESTOR RELATIONS:Barbara
CallahanSenior Vice President(973) 740
-5058Barbara.Callahan@cit.com
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