NEW YORK (AP) -- Commercial lender CIT Group Inc. on Wednesday agreed to buy most of Flagstar Bank's Northeast-based commercial loans portfolio for $779 million.
The companies said CIT will acquire about $1.26 billion in commercial loan commitments, $785 million of which are outstanding. The companies agreed to the deal on Monday and CIT expects to complete the purchase during the first quarter. Flagstar Bank is a subsidiary of Flagstar Bancorp Inc.
Flagstar Bancorp, based in Troy, Mich., said it plans to focus on its nationwide mortgage business and its Michigan community banking business.
Shares of CIT rose 40 cents to close at $39.04. Flagstar Bancorp stock rose 85 cents, or 4.4 percent, to close at $20.25.