CIT will gain nearly $7 billion in low-cost deposits, mostly tied to homeowners associations, as part of the acquisition.
The companies said the merger will provide scale and help them update technology more efficiently.
Margin expansion may grind to a halt if the Fed holds rates steady or cuts them further. The problem is regionals tend to lack the side businesses that the big banks possess to offset lending slumps.
The bank will buy First State Bank of Mobeetie.
The company will pay $13 million for the parent of Western Bank of Wolf Point.
Consolidation heated up in recent weeks after a tepid start this year. Here is an overview of noteworthy deals announced in June and July.
The company will pay $43 million in cash for a bank with seven branches and $209 million in deposits.
With margins under pressure and competition intensifying, a number of community banks are zeroing in on underserved markets.
Beacon Business Bank hired former Boston Private executive John Delaney as its new leader.
These banks posted strong quarterly results at a time when many others struggled with thinner margins and rising expenses.
