CIT Agrees to Acquire Commercial Loan Portfolio from Flagstar Bank

  CIT Agrees to Acquire Commercial Loan Portfolio from Flagstar Bank

Business Wire

NEW YORK -- January 2, 2013

CIT Group Inc. (NYSE: CIT) cit.com, a leading provider of financing and
advisory services to small businesses and middle market companies, today
announced that it has agreed to acquire a commercial loan portfolio from
Flagstar Bank (FSB), a wholly-owned subsidiary of Flagstar Bancorp, Inc.
(NYSE: FBC).

Under 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.

"We are pleased to be able to acquire a pool of commercial loans that
complements our existing corporate finance portfolio and will further expand
our middle market customer base,” said Nelson J. Chai, President of CIT. “We
will continue to look for opportunities to deploy our capital in transactions
that generate good returns.”

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About Flagstar

Flagstar Bancorp, Inc. is the holding company for Flagstar Bank, a
full-service financial institution offering a range of products and services
to consumers, businesses, and homeowners. With $14.9 billion in total assets
at September 30, 2012, Flagstar is the largest publicly held savings bank
headquartered in the Midwest. As of September 30, 2012, Flagstar operated 111
branches in Michigan, 31 home loan centers in 14 states, and a total of four
commercial banking offices in Massachusetts, Connecticut, and Rhode Island.
Flagstar originates loans nationwide and is one of the leading originators of
residential first mortgage loans. For more information, please visit
flagstar.com

About CIT Bank

Founded in 2000, CIT Bank (Member FDIC) is a wholly-owned subsidiary of CIT
Group Inc.(NYSE: CIT). It is regulated by the Federal Deposit Insurance
Corporation and the Utah Department of Financial Institutions. As of September
30, 2012, CIT Bank had $8.6 billion of deposits and $11.6 billion of assets.
CIT Bank makes loans without regard to race, color, religion, national origin,
sex, handicap or familial status. BankOnCIT.com

About CIT

Founded in 1908, CIT (NYSE: CIT) is a bank holding company with more than $33
billion in financing and leasing assets. A member of the Fortune 500, it
provides financing and leasing capital as well as advisory services to its
small business and middle market clients and their customers across more than
30 industries. CIT maintains leadership positions in small business and middle
market lending, factoring, retail finance, aerospace, equipment and rail
leasing, and global vendor finance. CIT also operates CIT Bank (Member FDIC),
BankOnCIT.com, its primary bank subsidiary, which offers a suite of savings
options designed to help customers achieve a range of financial goals. cit.com

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
applicable federal securities laws that are based upon our current
expectations and assumptions concerning future events, which are subject to a
number of risks and uncertainties that could cause actual results to differ
materially from those anticipated. The words “expect,” “anticipate,”
“estimate,” “forecast,” “initiative,” “objective,” “plan,” “goal,” “project,”
“outlook,” “priorities,” “target,” “intend,” “evaluate,” “pursue,” “commence,”
“seek,” “may,” “would,” “could,” “should,” “believe,” “potential,” “continue,”
or the negative of any of those words or similar expressions is intended to
identify forward-looking statements. All statements contained in this press
release, other than statements of historical fact, including without
limitation, statements about our plans, strategies, prospects and expectations
regarding future events and our financial performance, are forward-looking
statements that involve certain risks and uncertainties. While these
statements represent our current judgment on what the future may hold, and we
believe these judgments are reasonable, these statements are not guarantees of
any events or financial results, and our actual results may differ materially.
Important factors that could cause our actual results to be materially
different from our expectations include, among others, the risk that CIT is
unsuccessful in refining and implementing its strategy and business plan, the
risk that CIT is unable to quickly react to and address key business and
regulatory issues, the risk that CIT is delayed in transitioning certain
business platforms to CIT Bank and may not succeed in developing a stable,
long-term source of funding, and the risk that CIT continues to be subject to
liquidity constraints and higher funding costs. We describe these and other
risks that could affect our actual results in Item 1A, “Risk Factors”, of our
Annual Report on Form 10-K for the year ended December 31, 2011 and our
Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 filed
with the Securities and Exchange Commission. Accordingly, you should not place
undue reliance on the forward-looking statements contained in this press
release. These forward-looking statements speak only as of the date on which
the statements were made. CIT undertakes no obligation to update publicly or
otherwise revise any forward-looking statements, except where expressly
required by law.

Contact:

CIT MEDIA RELATIONS:
C. Curtis Ritter, 973-740-5390
Director of Corporate Communications
Curt.Ritter@cit.com
or
Matt Klein, 973-597-2020
Vice President, Media Relations
Matt.Klein@cit.com
or
CIT INVESTOR RELATIONS:
Ken Brause, 212-771-9650
Executive Vice President
Ken.Brause@cit.com