With an aim of focusing on core operations, CIT Group (CIT - Free Report) has sold the trust and wealth advisory business to Sunflower Bank, N.A., a subsidiary of Denver, CO-based FirstSun Capital Bancorp. The financial terms of the transaction are not yet disclosed by either party.
The divested business was part of Mutual of Omaha Bank, which was acquired by CIT Group in January 2020. The unit had approximately $800 million in assets under management and 20 wealth advisors, trust specialists, as well as investment professionals, who have now become part of Sunflower Bank.
CIT Group’s chairwoman and chief executive officer Ellen R. Alemany said, “We remain focused on our core strengths and creating an integrated banking offering for our key commercial and consumer segments of the market.”
For FirstSun Capital, the deal is expected to strengthen its capacity to meet clients' financial management and generational family planning requirements, as well as enable it to expand in Southwestern markets. Mollie Carter, chairman of FirstSun Capital and Sunflower Bank, N.A. said, “Sunflower Bank has leveraged its strong capital base to build a state-of-the-art investment platform, and we look forward to sharing our risk- and tax-optimized wealth solutions with our valued clients.”
Over the years, CIT Group remains focused on strengthening core commercial and consumer operations. To this end, the company sold Financial Freedom and the reverse mortgage portfolio in June 2018. Additionally, it divested stakes in the joint venture with Tokyo Century Corporation and sold the aircraft leasing business. Further, it has divested businesses in Europe, Canada, Brazil and Mexico, among others.
Shares of CIT Group have lost 48% over the past six months compared with a 1.6% decline for the industry.
Currently, CIT Group carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Amid coronavirus-induced economic slowdown, several financial firms are undertaking initiatives to focus on core businesses. In June, Associated Banc-Corp (ASB - Free Report) sold the insurance business — Associated Benefits & Risk Consulting — to USI Insurance Services LLC. Further, in July, Hilltop Holdings Inc. (HTH - Free Report) concluded the sale of its wholly-owned subsidiary — National Lloyds Corporation — to Align Financial Holdings, LLC. Last week, Midland States Bancorp, Inc. (MSBI - Free Report) divested the commercial FHA origination platform to Dwight Capital, a nationwide mortgage banking firm based in New York.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>