First Citizens BancShares and CIT Group have received regulatory clearance for their merger from the Board of Governors of the Federal Reserve System.

The deal, announced in October 2020, will create a top 20 bank in the US with over $100bn in assets. The all-stock deal is valued at approximately $2.16bn.

First Citizens BancShares and CIT Group own First-Citizens Bank & Trust Company, and CIT Bank respectively.

The merger is subject to a 15-day waiting period and the satisfaction of other customary closing conditions.

Upon completion, which is expected in January 2022, the combined firm will operate under the First Citizens name.

Notably, the Federal Deposit Insurance Corporation and the Office of the North Carolina Commissioner of Banks have already approved the merger.

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First Citizens chairman and CEO Frank Holding said: “We’re very pleased to have received regulatory approvals as we continue our preparations for completing this transformational merger.

“We look forward to combining the capabilities of both banks to serve a broader spectrum of businesses and individuals while offering even more convenience, scale and value.”

CIT chairwoman and CEO Ellen R. Alemany said: “This marks another key milestone in our journey to build on the extensive expertise of CIT and First Citizens and leverage the best of both companies to deliver greater opportunities for our clients and support the needs of our communities.”

Earlier this year, Columbia Banking System signed a deal to acquire Umpqua for $5bn.