Ethan Riley
CIT Bank, an online financial institution, became a division of First Citizens Bank in January 2022. First Citizens Bank, founded as the Bank of Smithfield, has 125 years of history and is FDIC-insured. Over time, the bank has expanded across the United States, with a presence in 23 states and over 500 branches. CIT Bank, as a division of First Citizens Bank, offers online banking services with high interest rates and low fees, providing convenience for customers who prefer digital transactions.
| Characteristics | Values |
|---|---|
| Date of becoming a bank holding company | December 2008 |
| Date of receiving funds from TARP | December 2008 |
| Amount of funds received from TARP | $2.33 billion |
| Date of CIT's request for Federal Deposit Insurance Corporation loan guarantees | July 15, 2009 |
| Date of CIT receiving funds from its bondholders | July 19, 2009 |
| Amount of funds received from bondholders | $3 billion |
| Date of CIT filing for bankruptcy | November 1, 2009 |
| Date of CIT emerging from bankruptcy protection | December 10, 2009 |
| Date of CIT Bank becoming a division of First Citizens Bank | January 2022 |
| Number of branches of First Citizens Bank | Over 500 |
| Number of states First Citizens Bank is present in | 23 |
| Assets of First Citizens Bank | Over $200 billion |
| Date of CIT Bank's founding | 125 years ago |
| Initial capital of CIT Bank | $10,000 |
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What You'll Learn
CIT Bank's history and ownership
CIT Bank, an online financial institution, became a division of First Citizens Bank in January 2022. First Citizens is based in North Carolina and has over 500 branches in 23 states in the US. The merger with CIT marked a major milestone for First Citizens and established it as a top 20 US bank based on asset size.
CIT Bank has a history of 125 years. It was founded as the Bank of Smithfield with just $10,000 of capital. It was Johnston County's sole bank and served primarily agricultural customers. After 17 years of astute leadership, R.P. Holding was elected president and chairman of First Citizens Bank & Trust Company. The bank's branch network stretched beyond Smithfield to Raleigh and into Eastern North Carolina. During the Great Recession, First Citizens remained safe and stable, entering new markets while keeping an eye on the long term. Frank B. Holding Jr., along with his sister, Vice Chairwoman Hope Holding Bryant, represent the third generation of Holding family leadership.
CIT Bank has gone through several acquisitions and sales over the years. In 1958, to diversify, the company acquired Picker X-Ray Corporation, a maker of X-ray and radiation equipment, for $1.9 million. In 1964, it acquired Gibson Greeting Cards for $36 million. In 1965, it acquired Meadow Brook Bank for $106.7 million in stock. In 1969, CIT entered the personal and home equity loan and leasing business and left auto financing. In 1979, restrictive banking rules forced CIT to sell its bank, the National Bank of North America. CIT was acquired by RCA Corporation in 1980, which promptly sold CIT's four manufacturing businesses. In 1984, CIT was sold to Manufacturers Hanover Trust, which sold 60% of CIT to Dai-Ichi Kangyo Bank of Japan in 1989. In 1991, the company acquired Fidelcor Business Credit Corporation, increasing its services to small businesses. In 1992, CIT opened 15 new offices in 7 states. In 1997, the company became a public company via an initial public offering that raised $850 million.
In December 2008, CIT became a bank holding company to receive $2.33 billion in funds from the Troubled Asset Relief Program (TARP). On July 19, 2009, the company received $3 billion from its bondholders, including Pacific Investment Management Company (PIMCO), to delay bankruptcy. On November 1, 2009, CIT filed for bankruptcy under Chapter 11 and emerged from bankruptcy protection on December 10, 2009. In August 2015, CIT Group acquired OneWest Bank, established in 2009, for $3.4 billion in cash and stock. In March 2016, CEO John Thain retired and was succeeded by Ellen Alemany, a member of the board of directors. In April 2017, the company sold its aircraft lease business to Avolon for $10.38 billion. In October 2018, the company sold its last overseas operation, its European rail leasing business, NACCO. In January 2020, CIT acquired Mutual of Omaha Bank.
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CIT Bank's merger with First Citizens Bank
CIT Bank, an online financial institution, became a division of First Citizens Bank in January 2022. First Citizens, with over 125 years of history, is one of the largest family-controlled banks in the US. Based in Raleigh, North Carolina, it has a network of over 500 branches in 22 to 23 states and assets of more than $200 billion.
The merger with CIT Bank and OneWest Bank (acquired by CIT Group in 2015) brings together two companies with a shared commitment to service and excellence. The merger strengthens First Citizens' position as a leading financial services provider, now operating over 600 branches across 19 to 23 states.
Customers of CIT Bank and OneWest Bank will continue to bank as usual, with access to their current branches, websites, mobile apps, bankers, and advisors. Over time, a transition to First Citizens' systems and operations will occur, providing customers with greater convenience and access to enhanced banking services.
The merger combines First Citizens' proven record of safety and long-term relationship focus with CIT's expertise and agility in providing sophisticated financial tools, including treasury management, loans, and specialized leasing, as well as advisory services to middle-market companies and small businesses.
With this merger, First Citizens Bank is well-positioned to be a comprehensive financial services destination, offering a diverse range of products and services, including retail, business, commercial, and wealth management options.
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CIT Bank's products and services
CIT Bank, an online financial institution, became a division of First Citizens Bank in January 2022. First Citizens, based in Raleigh, North Carolina, has over 500 branches in 23 states and more than $200 billion in assets.
CIT Bank offers a variety of deposit accounts, including savings accounts with high APYs (Annual Percentage Yield). Their most popular account is the CIT Platinum Savings account, which offers 4.00% APY with a balance of $5,000 or more, and no monthly fee. This account only requires a minimum of $100 to open. CIT also offers a range of other savings accounts and CDs (Certificates of Deposit).
CIT Bank has fewer fees than many other banks. Customers must handle all transactions online through the bank website, a mobile app, or an automated telephone line. This online-only business model allows CIT to offer higher interest rates than traditional banks like Citibank, which has physical branches.
CIT Bank has a long history, dating back to its founding as the Commercial Credit and Investment Company in 1908. Over the years, CIT has diversified its business, acquiring companies in various industries, including X-ray and radiation equipment, greeting cards, and office furniture. In 1969, CIT entered the personal and home equity loan and leasing business, and it left auto financing. In 1979, restrictive banking rules forced CIT to sell its bank, the National Bank of North America. In 1980, CIT was acquired by RCA Corporation, which promptly sold CIT's four manufacturing businesses.
In December 2008, CIT became a bank holding company and received $2.33 billion in funds from the Troubled Asset Relief Program (TARP). In 2015, CIT Group acquired OneWest Bank, and in 2016, CEO John Thain retired and was succeeded by Ellen Alemany. In 2017, the company sold its aircraft lease business to Avolon, and in 2018, it sold its last overseas operation, a European rail leasing business. In January 2020, CIT acquired Mutual of Omaha Bank.
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CIT Bank's financial troubles
CIT Group (CIT), a subsidiary of First Citizens BancShares, is an American financial services company that has been around since 1908. It was founded by Henry Ittleson, who established the Commercial Credit and Investment Company in St. Louis, Missouri, to finance accounts receivable at small companies. In 1915, the company moved its headquarters to New York City and renamed itself Commercial Investment Trust (CIT).
Over the years, CIT has faced several financial troubles and challenges. Here is a detailed overview of some of these difficulties:
Financial Troubles in the Late 1970s:
In 1979, restrictive banking rules forced CIT to sell its bank, the National Bank of North America. This was a challenging period for CIT, as it had to adapt to changing regulatory environments and ensure its compliance with banking regulations.
Acquisition by RCA Corporation:
In 1980, CIT was acquired by RCA Corporation. This led to significant changes in CIT's business structure as RCA promptly sold four of CIT's manufacturing businesses: Picker X-Ray, Gibson Greeting Cards, All-Steel (office furniture), and Raco (wall boxes for electric switches and outlets). The sale of these businesses marked a strategic shift for CIT and impacted its operations.
Sale to Manufacturers Hanover Trust:
In 1984, CIT was sold to Manufacturers Hanover Trust. This transition brought about changes in ownership and management, with Manufacturers Hanover Trust gaining control over CIT's operations and future strategic direction.
Partial Sale to Dai-Ichi Kangyo Bank:
In 1989, Manufacturers Hanover Trust sold 60% of CIT to Dai-Ichi Kangyo Bank of Japan. This partial sale resulted in a shift in international ownership and influenced the strategic direction and decision-making processes within CIT.
Bankruptcy and Reorganization:
One of the most significant financial troubles CIT faced occurred in 2008 and 2009. In December 2008, CIT became a bank holding company and received $2.33 billion in funds from the Troubled Asset Relief Program (TARP). However, in July 2009, CIT's request for Federal Deposit Insurance Corporation loan guarantees was rejected. This rejection led to a critical juncture where CIT received $3 billion from its bondholders, including Pacific Investment Management Company (PIMCO), to delay bankruptcy. Despite these efforts, on November 1, 2009, CIT filed for bankruptcy under Chapter 11. Fortunately, on December 10, 2009, CIT emerged from bankruptcy protection and named seven new independent directors as part of the reorganization plan.
Leadership Changes:
CIT also experienced leadership changes during financially challenging periods. In 2010, Peter J. Tobin, a member of the board of directors, replaced Jeff Peek as interim chief executive officer. Subsequently, former Merrill Lynch CEO John Thain was hired as chairman and chief executive officer. These leadership changes occurred during a time when CIT was navigating through financial challenges and seeking strategic direction.
In summary, CIT Bank, a division of First Citizens Bank, has a long history dating back to 1908. While it has faced financial troubles, including regulatory challenges, ownership changes, and bankruptcy, it has also demonstrated resilience and the ability to adapt. The bank continues to offer financial services and products to its customers, focusing on online banking and competitive interest rates.
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CIT Bank's acquisitions
CIT Bank, an online financial institution, became a division of First Citizens Bank in January 2022. First Citizens, based in Raleigh, North Carolina, has over 500 branches in 23 states and is one of the largest family-controlled banks in the US.
CIT Group, a subsidiary of First Citizens BancShares, is an American financial services company that has been around for over a century. It was founded in 1908 by Henry Ittleson as the Commercial Credit and Investment Company in St. Louis, Missouri, and moved its headquarters to New York City in 1915, renaming itself Commercial Investment Trust (CIT).
Over the years, CIT Group has made several acquisitions and diversified its business:
Picker X-Ray Corporation (1958)
CIT acquired Picker X-Ray Corporation, a maker of X-ray and radiation equipment, for $1.9 million.
Gibson Greeting Cards (1964)
CIT acquired Gibson Greeting Cards for $36 million.
Meadow Brook Bank (1965)
CIT acquired Meadow Brook Bank for $106.7 million in stock.
OneWest Bank (2015)
CIT Group acquired OneWest Bank, established in 2009 by a consortium of private equity investors led by Steven Mnuchin, for $3.4 billion in cash and stock.
Mutual of Omaha Bank (2020)
CIT acquired Mutual of Omaha Bank in January 2020.
CIT Bank, as a division of First Citizens Bank, now offers its customers the convenience of banking services from any First Citizens Bank location, in addition to its online platform.
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Frequently asked questions
CIT Bank has been around for over 125 years. It was founded as the Bank of Smithfield with just $10,000 of capital and served primarily agricultural customers.
CIT Bank is a division of First Citizens Bank, one of the largest family-controlled banks in the US. It is an online financial institution that offers accounts with high interest rates and low fees.
Yes, CIT Bank is a legitimate bank and your money is safe. It is FDIC-insured, which means that in the unlikely event that the bank closes, the federal government protects your savings up to $250,000.
CIT Bank offers easy-to-open accounts with low opening deposit requirements and high APYs. It provides the convenience of online and mobile banking, allowing customers to handle transactions through its website, mobile app, or automated telephone line.
