First Citizens BancShares Inc., the parent company of First-Citizens Bank & Trust Company, and CIT Group Inc., the parent company of CIT Bank, N.A., jointly announced the proposal to merge the two companies has received regulatory approval from the Federal Deposit Insurance Corporation.

The merger has already received approval from the Office of the North Carolina Commissioner of Banks.

Completion of the proposed merger remains subject to approval from the Board of Governors of the Federal Reserve System, and closing is expected in the third quarter, subject to such approval and the satisfaction or waiver of other customary closing conditions.

Frank B. Holding Jr., First Citizens' Chairman and Chief Executive Officer, said: "This key step moves us closer to the completion of our proposed merger transaction, and we remain excited about future opportunities ahead."

Ellen R. Alemany, CIT's Chairwoman and Chief Executive Officer, said: "We're pleased to receive FDIC approval as we continue to work together toward the successful combination of our two companies."

When completed, the combined company will operate under the First Citizens name and establish a top 20 bank in the United States based on assets. The merger will bring together complementary strengths of both organizations with First Citizens Bank's robust retail franchise and full suite of banking products and CIT's strong market positions, nationwide commercial lending franchise and direct online bank.

Previously reported by ABL Advisor on October 16, 2020: CIT Group, First Citizens BancShares to Merge, Creating America’s 19th Largest Bank