First Citizens, CIT extend merger agreement as Fed approval remains outstanding

First Citizens BancShares Inc. and CIT Group Inc. have extended their merger agreement as they continue to await Federal Reserve Board approval for their merger of equals.

The companies on Sept. 30 agreed to amend their merger agreement and extend it to March 1, 2022, from Oct. 15, 2021, to provide additional time to obtain regulatory approval from the Federal Reserve Board, according to a Form 8-K.

In their joint news release, the companies said they have responded to all questions from the Fed and were informed that the agency does not have any further questions at this time. The application is currently at the governor level, and the companies have not been informed of a time frame regarding a decision on the application.

First Citizens and CIT Group have extended the expected closing date of their MOE twice since announcing it on Oct. 16, 2020. The companies originally expected the deal to close in the first half of 2021, but on First Citizens' first-quarter earnings conference call April 28, management pushed the anticipated closing date to mid-2021 and shut down analysts' speculation that there may be regulatory scrutiny surrounding the MOE.

More than three months later on First Citizens' second-quarter earnings conference call, management again fielded questions about the Fed's pending approval and extended the expected closing date to the third quarter.

"It is also our understanding that there are no concerns that may impact ultimate approval," CFO Craig Nix said on the Aug. 3 call.

Both companies' shareholders approved the transaction in February. The merger has also already received approval from the Office of the North Carolina Commissioner of Banks and the Federal Deposit Insurance Corp.