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Tuesday, July 22, 2014

CIT to purchase OneWest Bank to boost middle-market lending, (NYSE: CIT)

U.S. small-business lender CIT Group Inc said it would purchase California lender OneWest Bank NA for $3.4 billion in cash and stock, its second deal in two months to boost its middle-market lending.The company also said it would buyback up to $500 million in common stock, sending its shares up 12 percent in premarket trading.Shareholders of IMB Holdco LLC, OneWest's parent company that CIT is acquiring, will get $2 billion in cash and the rest through the issuance of 31.3 million CIT shares, assuming a stock price of $44.33, CIT said in a statement.CIT also posted a better-than-expected profit for the second quarter, helped by strong gains at its aerospace and railcar leasing business. CIT Bank reported a 25 percent jump in deposits to $13.9 billion as of June 30.

CIT Group Inc. is a bank holding company (BHC) together with its owned subsidiaries (CIT), provides primarily commercial financing and leasing products and other services to small and middle market businesses across a range of industries. Shares of CIT remained unchanged at $43.95. In the past year, the shares have traded as low as $41.06 and as high as $52.72. On average, 1786470 shares of CIT exchange hands on a given day and today's volume is recorded at 0.