WASHINGTON (dpa-AFX) - CIT Group Inc. (CIT) announced that it has agreed to acquire a commercial loan portfolio from Flagstar Bank or FSB, a wholly-owned subsidiary of Flagstar Bancorp, Inc. (FBC).
As per the terms of the agreement, CIT Bank, the U.S. commercial bank subsidiary of CIT, will acquire approximately $1.3 billion in commercial loan commitments, of which approximately $800 million is currently outstanding.
The assets represent a substantial portion of FSB's Northeast-based commercial loan portfolio, which consists primarily of asset-based, commercial real estate, and equipment finance loans and leases.
The purchase is expected to be substantially completed during the first quarter of 2013.
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