CIT Group has secured the go-ahead from US regulators to acquire OneWest Bank and its parent IMB Holdco in a $3.4bn deal.
The deal, which was originally announced on 22 July 2014, has received approval of the Federal Reserve Board, the Office of the Comptroller of the Currency (OCC), and other relevant state regulators.
The combined company, CIT Group, will have over $65bn in assets and over $30bn in deposits.
Its principal bank subsidiary, CIT Bank, will merge with and into OneWest Bank, operating an internet banking franchise, along with a retail banking network of 70 branches across Southern California.
CIT chairman and CEO John Thain said: "We are pleased to receive regulatory approval as we look to complete our acquisition of OneWest Bank.
"We welcome OneWest employees to CIT and we look forward to working with them to meet the needs of small and middle market businesses, the transportation industry, real estate sector and our retail bank customers."
The transaction is scheduled to close on 3 August 2015 subject to closing conditions.