Regulators extend comment period for First Citizens-CIT merger

Federal regulators have extended the comment period for First Citizens BancShares’ deal to acquire CIT Group by about a month, in part reflecting logistical challenges presented by the coronavirus pandemic.

The companies announced the $2.2 billion deal in October and it was to close it in the first half of this year. The merger would create a top-20 bank with $110 billion of assets.

The Federal Reserve said in a press release last week that it will accept comments until Feb. 22, attributing the decision to the pandemic. The Federal Deposit Insurance Corp. said Friday that its comment period, originally set to end this month, will also last until Feb. 22; the agency did not immediately respond to a call seeking comment.

A CIT spokeswoman referred all questions to First Citizens, which did not immediately respond to a request for comment.

The deal would combine two companies with a history of acquisitions.

The $50 billion-asset First Citizens, which is based in Raleigh, N.C., has bought more than 25 banks over the past decade and now has nearly $50 billion of assets.

The New York-based CIT bought the $23 billion-asset OneWest Bank in Pasadena, Calif., in 2015 and the $8.3 billion-asset Mutual of Omaha Bank in Nebraska last year. Those acquisitions pushed the company's assets above $60 billion.

First Citizens would be the surviving company and its investors would own 61% of all outstanding shares.

Frank Holding Jr., First Citizens’ chairman and CEO, would retain those titles. Ellen Alemany, CIT’s chairwoman and chief executive, would become vice chairwoman.