CIT Group is buying regional bank OneWest Bank in a $3.4 billion cash-and-stock deal.
OneWest, whose parent company is IMB Holdco LLC, runs 73 retail branches in southern California. The bank is privately owned.
IMB shareholders will receive $2 billion in cash and 31.3 million CIT Group shares that are currently valued at $1.4 billion.
When the transaction closes, CIT Group Inc.'s banking subsidiary CIT Bank will merge with OneWest Bank under the CIT Bank sign.
John Thain will still serve as Chairman and CEO of CIT Group, based in Livingston, New Jersey. The company's board will increase from 13, to 15 directors.
The deal is expected to add 20 percent to CIT Group's 2016 earnings per share.
The boards of both companies have approved the sale.