CIT GROUP INC - FORM 8-K - EX-99.1 - FINANCIAL DATA PACKAGE - June 27, 2014

Attached files

file filename
8-K - FORM 8-K - CIT GROUP INCe59370_8k.htm

Exhibit 99.1

 

FINANCIAL DATA PACKAGE

 

 

The data provided herein has not been examined by independent accountants and may not be presented in accordance with generally accepted accounting principles (“GAAP”). As such, the data may vary from comparable data reported in CIT’s Forms 10-K & 10-Q. Modifications include, but are not limited to, the presentation of revised and restated financials, the reclassification of certain prior period data to conform to the current period presentation and differences due to rounding.

 

 

Please refer to the Company’s SEC filings on Forms 10-K and 10-Q for consolidated financial results prepared in accordance with GAAP.

 

Amounts shown are as of or for the period ending as applicable.

 

 
 

 

Effective January 1, 2014 CIT began managing its businesses and reporting its financial results in three operating segments:

- Transportation & International Finance

- North American Commercial Finance

- Non-Strategic Portfolios

These new segments will consist of the following divisions:

Transportation & International Finance

- Aerospace - Includes Commercial Air (operating leases and loans) and Business Aircraft Finance

- Rail

- Maritime Finance

- International Finance - Includes the corporate lending business in the U.K. ( formerly part of the Corporate Finance Segment) and the equipment financing businesses in the U.K. and China (formerly part of the Vendor Finance Segment)

North American Commercial Finance

- Real Estate Finance (formerly in Corporate Finance)

- Corporate Finance - Includes lending to the Aerospace and Defense sector (formerly Transportation Lending in Transportation Finance)

- Equipment Finance – Consists of Equipment Finance (formerly in Corporate Finance) and the U.S. and Canadian businesses formerly in Vendor Finance

- Commercial Services (formerly Trade Finance)

Non-Strategic Portfolios

- Small Business Lending (formerly in Corporate Finance)

- Non-Strategic portfolios from the former Vendor Finance business including:

Asia (excluding China)

Europe (excluding the U.K.)

Latin America (including Mexico)

The Dell Canada portfolio (sold in May 2011)

 
 

 

CIT Group Inc.
Financial Data Package
Table of Contents
   
Item Page
   
Balance Sheet Data 4
   
Average Balance Sheet 5
     
Average Balance Sheet - Continued 6
     
Income Statement - Consolidated Data 7
   
Income Statement - Segment Data 8
   
Division Data 9
     
Financing and Leasing Assets  10
   
Financing and Leasing Assets - Division 11
     
Credit Metrics 12
   
Select Data & Ratios 13
   
CIT Bank - Select Financial Data 14
   
Non-GAAP Disclosures 15
   
Fresh Start Accounting 16
   
Financial Terms 17

 

3
 

 

CIT Group Inc.

Balance Sheet Data

(dollars in millions)                                 

   3/31/2014  12/31/2013  9/30/2013  6/30/2013  3/31/2013  12/31/2012  9/30/2012  6/30/2012  3/31/2012     12/31/2013  12/31/2012  12/31/2011  
Assets                                                  
Cash and interest bearing deposits $6,693.9  $6,044.7  $5,888.8  $5,632.8  $5,431.4  $6,709.6  $6,339.3  $5,911.4  $6,228.0    $6,044.7  $6,709.6  $7,327.1 
Investment securities  2,255.0   2,630.7   2,498.9   1,558.0   1,724.1   1,065.5   1,016.2   1,194.1   1,318.2     2,590.6   1,065.5   1,257.8 
Assets held for sale  1,119.4   1,003.4   1,122.2   1,186.6   646.8   644.8   880.3   875.4   620.3     1,003.4   644.8   680.7 
Loans  18,571.7   18,629.2   18,371.0   18,155.3   18,525.7   17,153.1   16,630.6   16,202.4   15,925.1     18,629.2   17,153.1   15,225.8 
Allowance for loan losses  (352.6)  (356.1)  (356.1)  (367.2)  (386.0)  (379.3)  (397.9)  (414.2)  (420.0)    (356.1)  (379.3)  (407.8)
Total loans, net of allowance for loan losses  18,219.1   18,273.1   18,014.9   17,788.1   18,139.7   16,773.8   16,232.7   15,788.2   15,505.1     18,273.1   16,773.8   14,818.0 
Operating lease equipment, net  14,182.4   13,035.4   12,577.1   12,326.2   12,290.6   12,411.7   12,086.7   11,911.2   11,918.9     13,035.4   12,411.7   12,006.4 
Unsecured counterparty receivable  279.5   301.6   347.9   370.1   315.3   328.9   264.0   290.8   345.4     301.6   328.9   296.4 
Goodwill  403.5   334.6   338.3   344.5   345.9   345.9   345.9   345.9   345.9     334.6   345.9   345.9 
Other assets (1)  1,704.1   1,694.1   1,547.6   1,472.6   1,572.7   1,529.2   1,617.9   1,426.4   1,615.1     1,694.1   1,529.2   1,509.3 
Assets of discontinued operation  3,721.2   3,821.4   3,888.3   3,952.1   4,096.9   4,202.6   4,817.1   5,062.8   6,284.7     3,861.5   4,202.6   7,021.8 
Total Assets $48,578.1  $47,139.0  $46,224.0  $44,631.0  $44,563.4  $44,012.0  $43,600.1  $42,806.2  $44,181.6    $47,139.0  $44,012.0  $45,263.4 
                                                   
Liabilities                                                  
Deposits $13,189.3  $12,526.5  $11,806.1  $11,171.3  $10,701.9  $9,684.5  $8,709.3  $7,163.6  $6,814.7    $12,526.5  $9,684.5  $6,193.7 
Credit balances of factoring clients  1,213.5   1,336.1   1,278.4   1,205.0   1,237.7   1,256.5   1,224.9   1,164.1   1,109.8     1,336.1   1,256.5   1,225.5 
Other liabilities (2)  2,692.6   2,664.3   2,881.7   2,553.6   2,530.2   2,751.8   2,612.5   2,510.1   2,636.2     2,664.3   2,751.8   2,618.9 
Long-term borrowings (3)  19,508.8   18,484.5   18,041.2   17,569.4   18,040.8   18,330.9   18,752.7   19,200.7   20,604.2     18,444.4   18,330.9   21,743.9 
Liabilities of discontinued operation  3,172.1   3,277.6   3,362.9   3,446.2   3,550.7   3,648.8   4,186.9   4,369.8   4,546.0     3,317.7   3,648.8   4,595.3 
Total Liabilities $39,776.3  $38,289.0  $37,370.3  $35,945.5  $36,061.3  $35,672.5  $35,486.3  $34,408.3  $35,710.9    $38,289.0  $35,672.5  $36,377.3 
                                                   
Common stock $2.0  $2.0  $2.0  $2.0  $2.0  $2.0  $2.0  $2.0  $2.0    $2.0  $2.0  $2.0 
Paid-in capital  8,569.7   8,555.4   8,543.1   8,530.2   8,514.4   8,501.8   8,491.0   8,481.5   8,471.7     8,555.4   8,501.8   8,459.3 
(Accumulated deficit) / Retained earnings  678.4   581.0   471.2   271.6   88.0   (74.6)  (281.4)  17.8   90.7     581.0   (74.6)  517.7 
Accumulated other comprehensive income (loss)  (76.0)  (73.6)  (88.0)  (85.5)  (83.3)  (77.7)  (86.0)  (91.0)  (80.3)    (73.6)  (77.7)  (82.6)
Treasury stock, at cost  (378.1)  (226.0)  (83.3)  (41.1)  (26.7)  (16.7)  (16.7)  (16.5)  (16.5)    (226.0)  (16.7)  (12.8)
Total Common Stockholders' Equity  8,796.0   8,838.8   8,845.0   8,677.2   8,494.4   8,334.8   8,108.9   8,393.8   8,467.6     8,838.8   8,334.8   8,883.6 
Noncontrolling minority interests  5.8   11.2   8.7   8.3   7.7   4.7   4.9   4.1   3.1     11.2   4.7   2.5 
Total Equity $8,801.8  $8,850.0  $8,853.7  $8,685.5  $8,502.1  $8,339.5  $8,113.8  $8,397.9  $8,470.7    $8,850.0  $8,339.5  $8,886.1 
Total Liabilities and Equity $48,578.1  $47,139.0  $46,224.0  $44,631.0  $44,563.4  $44,012.0  $43,600.1  $42,806.2  $44,181.6    $47,139.0  $44,012.0  $45,263.4 
                                                   
(1) Other Assets                                                  
Deposits on commercial aerospace equipment $761.2  $831.3  $693.0  $612.9  $685.2  $615.3  $558.3  $495.8  $495.9    $831.3  $615.3  $463.7 
Other counterparty receivables  30.7   45.9   57.0   5.6   57.4   115.7   138.4   32.2   170.0     45.9   115.7   94.1 
Deferred debt costs and other deferred charges  160.8   158.5   149.7   153.6   161.5   169.8   168.5   144.9   136.6     158.5   169.8   121.8 
Tax receivable, other than income taxes  143.0   132.2   110.0   99.4   84.1   81.7   128.8   68.0   54.5     132.2   81.7   57.5 
Executive retirement plan and deferred compensation  100.0   101.3   100.4   104.0   104.1   109.7   109.4   110.1   114.7     101.3   109.7   110.2 
Accrued interest and dividends  29.8   33.0   31.3   31.5   31.0   27.5   31.3   28.8   25.1     33.0   27.5   17.8 
Prepaid expenses  68.8   64.3   63.4   66.1   75.9   73.8   79.6   85.2   74.2     64.3   73.8   84.3 
Furniture and fixtures  85.9   85.3   84.9   79.5   77.7   75.4   79.0   77.0   78.1     85.3   75.4   79.5 
Other  323.9   242.3   257.9   320.0   295.8   260.3   324.6   384.4   466.0     242.3   260.3   480.4 
Total Other Assets $1,704.1  $1,694.1  $1,547.6  $1,472.6  $1,572.7  $1,529.2  $1,617.9  $1,426.4  $1,615.1    $1,694.1  $1,529.2  $1,509.3 
                                                   
(2) Other Liabilities                                                  
Valuation adjustment relating to aerospace commitments $128.3  $137.5  $142.4  $158.9  $184.9  $188.1  $207.6  $210.9  $239.7    $137.5  $188.1  $252.8 
Equipment maintenance reserves  915.2   904.2   879.8   862.6   860.9   850.0   804.5   756.0   719.1     904.2   850.0   690.6 
Accrued expenses and accounts payable  363.1   478.1   501.3   455.1   462.1   554.0   527.1   571.0   649.8     478.1   554.0   624.3 
Accrued interest payable  215.2   247.1   198.1   224.3   197.8   235.3   206.8   221.9   154.8     247.1   235.3   187.6 
Security and other deposits  245.4   227.4   219.0   263.4   231.5   231.6   226.1   208.7   211.6     227.4   231.6   199.8 
Current taxes payable and deferred taxes  316.6   179.8   158.8   134.1   157.4   185.5   125.2   121.1   87.4     179.8   185.5   38.7 
Other liabilities  508.8   490.2   782.3   455.2   435.6   507.3   515.2   420.5   573.8     490.2   507.3   625.1 
Total Other Liabilities $2,692.6  $2,664.3  $2,881.7  $2,553.6  $2,530.2  $2,751.8  $2,612.5  $2,510.1  $2,636.2    $2,664.3  $2,751.8  $2,618.9 
                                                   
(3) Long-term Borrowings                                                  
Secured borrowings $5,976.5  $5,952.9  $5,509.8  $5,779.9  $6,239.1  $6,506.8  $6,417.8  $5,770.2  $5,772.8    $5,952.9  $6,506.8  $21,743.9 
Credit facility  -   -   -   -   -   -   500.0   500.0   -     -   -   - 
Senior unsecured  13,532.3   12,531.6   12,531.4   11,789.5   11,801.7   11,824.1   11,834.9   12,930.5   14,831.4     12,491.5   11,824.1   - 
Total Long-term Borrowings $19,508.8  $18,484.5  $18,041.2  $17,569.4  $18,040.8  $18,330.9  $18,752.7  $19,200.7  $20,604.2    $18,444.4  $18,330.9  $21,743.9 

 

4
 

 

CIT Group Inc.

Average Balance Sheet, Net Interest Income and Yields / Rates

(dollars in millions)

                                     
   1Q 14  2013  2012  2011
   Average Balance  Revenue / Expense  Average Rate (%)  Average Balance  Revenue / Expense  Average Rate (%)  Average Balance  Revenue / Expense  Average Rate (%)  Average Balance  Revenue / Expense  Average Rate (%)
Interest bearing deposits  $5,188.9   $4.6    0.35%  $5,531.6   $16.6    0.30%  $6,420.1   $21.6    0.34%  $6,588.2   $24.1    0.37%
Investments   2,499.7    4.2    0.67%   1,886.0    12.3    0.65%   1,316.7    10.5    0.80%   1,962.3    10.6    0.54%
Loans (including held for sale)                                                            
U.S.   15,816.3    214.4    5.90%   14,618.0    855.3    6.40%   12,403.4    953.6    8.51%   11,806.6    1,348.4    12.59%
Non-U.S.   3,736.7    79.0    8.45%   4,123.6    371.0    9.00%   4,029.1    408.3    10.13%   4,566.2    588.8    12.89%
Total Loans   19,553.0    293.4    6.42%   18,741.6    1,226.3    7.01%   16,432.5    1,361.9    8.94%   16,372.8    1,937.2    12.68%
Total interest earning assets / interest income   27,241.6    302.2    4.65%   26,159.2    1,255.2    5.04%   24,169.3    1,394.0    6.07%   24,923.3    1,971.9    8.28%
Operating lease equipment, net (including held for sale)                                                            
U.S.   7,349.6    156.2    8.50%   6,559.0    613.1    9.35%   6,139.0    596.9    9.72%   5,186.7    428.1    8.25%
Non-U.S.   6,551.2    135.3    8.26%   6,197.1    580.6    9.37%   6,299.0    651.3    10.34%   6,220.0    661.1    10.63%
Total operating lease equipment, net   13,900.8    291.5    8.39%   12,756.1    1,193.7    9.36%   12,438.0    1,248.2    10.04%   11,406.7    1,089.2    9.55%
Total earning assets   41,142.4    593.7    5.96%   38,915.3    2,448.9    6.50%   36,607.3    2,642.2    7.46%   35,330.0    3,061.1    8.69%
Non-interest earning assets                                                            
Cash and due from banks   1,055.0              522.1              441.2              1,216.6           
Allowance for loan losses   (357.8)             (367.8)             (405.1)             (412.0)          
All other non-interest bearing assets   2,357.3              2,215.3              2,228.2              2,760.1           
Assets of discontinued operation   3,792.3              4,016.3              5,420.7              8,145.9           
Total Average Assets  $47,989.2             $45,301.2             $44,292.3             $48,040.6           
                                                             
Borrowings                                                            
Deposits  $12,812.2   $51.9    1.62%  $11,212.1   $179.8    1.60%  $7,707.9   $152.5    1.98%  $4,796.6   $111.2    2.32%
Long-term borrowings   19,022.1    220.0    4.63%   18,044.5    881.1    4.88%   19,964.5    2,513.2    12.59%   25,752.0    2,393.0    9.29%
Total interest-bearing liabilities   31,834.3    271.9    3.42%   29,256.6    1,060.9    3.63%   27,672.4    2,665.7    9.63%   30,548.6    2,504.2    8.20%
Credit balances of factoring clients   1,276.3              1,258.6              1,194.4              1,098.1           
Other non-interest bearing liabilities   2,819.6              2,638.2              2,642.7              2,800.1           
Liabilities of discontinued operation   3,240.1              3,474.2              4,293.8              4,633.5           
Noncontrolling interests   11.1              9.2              5.0              1.1           
Stockholders' equity   8,807.8              8,664.4              8,484.0              8,959.2           
Total Average Liabilities and Stockholders' Equity  $47,989.2             $45,301.2             $44,292.3             $48,040.6           
                                                             
Net revenue spread             2.54%             2.87%             -2.17%             0.49%
Impact of non-interest bearing sources             0.69%             0.82%             2.11%             1.09%
Net revenue / yield on earning assets       $321.8    3.23%       $1,388.0    3.69%       $(23.5)   -0.06%       $556.9    1.58%

 

5
 

CIT Group Inc.

Average Balance Sheet, Net Interest Income and Yields / Rates

(dollars in millions)     

                                     
    4Q 13 3Q13    2Q 13   1Q 13
    Average
Balance		    Revenue /
Expense		    Average
Rate (%)		    Average
Balance		    Revenue /
Expense		    Average
Rate (%)		    Average
Balance		    Revenue /
Expense		    Average
Rate (%)		    Average
Balance		    Revenue /
Expense		    Average
Rate (%)		 
Interest bearing deposits  $5,554.6   $4.8    0.35%  $5,188.7   $4.0    0.31%  $5,281.9   $4.3    0.33%  $5,755.7   $3.5    0.24%
Investments   2,338.8    3.8    0.66%   2,041.3    2.8    0.55%   1,658.3    2.8    0.68%   1,536.2    2.9    0.76%
Loans (including held for sale)                                                            
U.S.   15,323.4    210.5    6.02%   14,943.2    209.6    6.13%   14,549.5    214.9    6.45%   13,788.6    220.3    7.00%
Non-U.S.   3,982.0    88.1    8.85%   4,189.3    90.0    8.59%   4,188.6    97.1    9.27%   4,182.5    95.8    9.16%
Total Loans   19,305.4    298.6    6.65%   19,132.5    299.6    6.71%   18,738.1    312.0    7.12%   17,971.1    316.1    7.53%
Total interest earning assets / interest income   27,198.8    307.2    4.75%   26,362.5    306.4    4.88%   25,678.3    319.1    5.22%   25,263.0    322.5    5.36%
Operating lease equipment, net (including held for sale)                                                            
U.S.   6,885.6    160.7    9.34%   6,497.9    148.2    9.12%   6,447.0    156.8    9.73%   6,391.2    147.4    9.23%
Non-U.S.   6,033.3    124.6    8.26%   6,155.1    149.1    9.69%   6,267.5    153.6    9.80%   6,343.4    153.3    9.67%
Total operating lease equipment, net   12,918.9    285.3    8.83%   12,653.0    297.3    9.40%   12,714.5    310.4    9.77%   12,734.6    300.7    9.45%
Total earning assets   40,117.7    592.5    6.11%   39,015.5    603.7    6.40%   38,392.8    629.5    6.77%   37,997.6    623.2    6.77%
Non-interest earning assets                                                            
Cash and due from banks   730.4              672.8              429.6              299.0           
Allowance for loan losses   (355.2)             (363.4)             (376.0)             (378.1)          
All other non-interest bearing assets   2,257.0              2,216.9              2,183.2              2,206.3           
Assets of discontinued operation   3,876.2              3,940.1              4,055.1              4,166.0           
Total Average Assets  $46,626.1             $45,481.9             $44,684.7             $44,290.8           
                                                             
Borrowings                                                            
Deposits  $12,148.5   $48.4    1.60%  $11,501.4   $44.2    1.54%  $11,009.6   $44.8    1.63%  $10,199.7   $42.3    1.66%
Long-term borrowings   18,235.9    219.1    4.81%   17,808.3    212.5    4.77%   17,817.5    217.8    4.89%   18,195.7    231.8    5.10%
Total interest-bearing liabilities   30,384.4    267.5    3.52%   29,309.7    256.7    3.50%   28,827.1    262.6    3.64%   28,395.4    274.1    3.86%
Credit balances of factoring clients   1,346.5              1,264.8              1,222.2              1,187.3           
Other non-interest bearing liabilities   2,695.6              2,699.6              2,504.8              2,665.3           
Liabilities of discontinued operation   3,333.4              3,418.1              3,515.9              3,613.7           
Noncontrolling interests   10.6              9.8              9.1              6.7           
Stockholders' equity   8,855.6              8,779.9              8,605.6              8,422.4           
Total Average Liabilities and Stockholders' Equity  $46,626.1             $45,481.9             $44,684.7             $44,290.8           
                                                             
Net revenue spread             2.59%             2.90%             3.13%             2.91%
Impact of non-interest bearing sources             0.76%             0.78%             0.82%             0.88%
Net revenue / yield on earning assets       $325.0    3.35%       $347.0    3.68%       $366.9    3.95%       $349.1    3.79%
                                                             
                                     
    4Q 13 3Q13    2Q 13   1Q 13
    Average
Balance		    Revenue /
Expense		    Average
Rate (%)		    Average
Balance		    Revenue /
Expense		    Average
Rate (%)		    Average
Balance		    Revenue /
Expense		    Average
Rate (%)		    Average
Balance		    Revenue /
Expense		    Average
Rate (%)		 
Interest bearing deposits  $6,216.3   $6.0    0.39%  $6,776.5   $5.7    0.34%  $6,328.3   $5.1    0.32%  $5,912.3   $4.8    0.32%
Investments   1,063.0    2.5    0.94%   1,115.3    2.2    0.79%   1,273.8    2.9    0.91%   1,709.2    2.9    0.68%
Loans (including held for sale)                                                            
U.S.   12,998.7    214.4    7.31%   12,703.3    215.9    7.50%   12,194.7    251.0    9.10%   11,822.7    272.3    10.20%
Non-U.S.   4,108.7    98.9    9.63%   3,965.9    107.5    10.84%   4,024.7    104.2    10.36%   4,017.2    97.7    9.73%
Total Loans   17,107.4    313.3    7.91%   16,669.2    323.4    8.36%   16,219.4    355.2    9.43%   15,839.9    370.0    10.07%
Total interest earning assets / interest income   24,386.7    321.8    5.57%   24,561.0    331.3    5.67%   23,821.5    363.2    6.41%   23,461.4    377.7    6.77%
Operating lease equipment, net (including held for sale)                                                            
U.S.   6,256.6    161.2    10.31%   6,302.6    147.5    9.36%   6,149.2    149.1    9.70%   5,886.1    139.1    9.45%
Non-U.S.   6,362.8    159.7    10.04%   6,252.1    163.0    10.43%   6,207.0    165.5    10.67%   6,334.2    163.1    10.30%
Total operating lease equipment, net   12,619.4    320.9    10.17%   12,554.7    310.5    9.89%   12,356.2    314.6    10.18%   12,220.3    302.2    9.89%
Total earning assets   37,006.1    642.7    7.19%   37,115.7    641.8    7.15%   36,177.7    677.8    7.74%   35,681.7    679.9    7.87%
Non-interest earning assets                                                            
Cash and due from banks   323.2              372.0              345.8              644.6           
Allowance for loan losses   (392.4)             (406.6)             (415.1)             (410.6)          
All other non-interest bearing assets   2,187.6              2,144.4              2,237.2              2,327.4           
Assets of discontinued operation   4,517.9              4,980.2              5,488.8              6,671.3           
Total Average Assets  $43,642.4             $44,205.7             $43,834.4             $44,914.4           
                                                             
Borrowings                                                            
Deposits  $9,270.1   $42.5    1.83%  $7,977.5   $38.4    1.93%  $6,922.6   $35.3    2.04%  $6,552.5   $36.3    2.22%
Long-term borrowings   18,381.5    227.3    4.95%   19,714.8    734.5    14.90%   20,247.4    572.5    11.31%   21,180.2    978.9    18.49%
Total interest-bearing liabilities   27,651.6    269.8    3.90%   27,692.3    772.9    11.16%   27,170.0    607.8    8.95%   27,732.7    1,015.2    14.64%
Credit balances of factoring clients   1,261.9              1,190.7              1,160.4              1,143.4           
Other non-interest bearing liabilities   2,661.2              2,638.2              2,567.2              2,662.0           
Liabilities of discontinued operation   3,829.0              4,317.5              4,491.9              4,591.9           
Noncontrolling interests   5.5              5.7              4.5              3.7           
Stockholders' equity   8,233.2              8,361.3              8,440.4              8,780.7           
Total Average Liabilities and Stockholders' Equity  $43,642.4             $44,205.7             $43,834.4             $44,914.4           
                                                             
Net revenue spread            3.29%             -4.01%             -1.21%             -6.77%
Impact of non-interest bearing sources             0.88%             2.56%             2.01%             2.89%
Net revenue / yield on earning assets       $372.9    4.17%       $(131.1)   -1.45%       $70.0    0.80%       $(335.3)   -3.88%

 

6
 

CIT Group Inc.

Income Statement - Consolidated Data

(dollars in millions, except per share data)  

 
        1Q14   4 Q13   3 Q13   2 Q13   1 Q13   4 Q12   3 Q12   2 Q 12   1 Q 12     2013     2012     2011  
Interest income $ 302.2   $ 307.2   $ 306.4   $ 319.1   $ 322.5   $ 321.8   $ 331.3   $ 363.2   $ 377.7     $ 1,255.2   $ 1,394.0   $ 1,971.9  
Rental income on operating leases   491.9     463.8     472.9     484.3     476.4     480.3     475.1     475.5     469.9       1,897.4     1,900.8     1,785.6  
    Finance Revenue   794.1     771.0     779.3     803.4     798.9     802.1     806.4     838.7     847.6       3,152.6     3,294.8     3,757.5  
Interest expense   (271.9 )   (267.5 )   (256.7 )   (262.6 )   (274.1 )   (269.8 )   (772.9 )   (607.8 )   (1,015.2 )     (1,060.9 )   (2,665.7 )   (2,504.2 )
Depreciation on operating lease equipment   (148.8 )   (139.5 )   (134.2 )   (133.6 )   (133.3 )   (127.5 )   (126.5 )   (125.3 )   (133.9 )     (540.6 )   (513.2 )   (538.6 )
Maintenance and other operating lease expenses*   (51.6 )   (39.0 )   (41.4 )   (40.3 )   (42.4 )   (31.9 )   (38.1 )   (35.6 )   (33.8 )     (163.1 )   (139.4 )   (157.8 )
    Net Finance Revenue   321.8     325.0     347.0     366.9     349.1     372.9     (131.1 )   70.0     (335.3 )     1,388.0     (23.5 )   556.9  
Other income (1)   71.1     127.6     104.5     79.2     70.0     152.4     85.6     123.1     253.6       381.3     614.7     954.2  
    Total Net Revenues   392.9     452.6     451.5     446.1     419.1     525.3     (45.5 )   193.1     (81.7 )     1,769.3     591.2     1,511.1  
Provision for credit losses   (36.7 )   (14.4 )   (16.4 )   (14.6 )   (19.5 )   -     -     (8.9 )   (42.5 )     (64.9 )   (51.4 )   (269.7 )
    Net revenue, after credit provision   356.2     438.2     435.1     431.5     399.6     525.3     (45.5 )   184.2     (124.2 )     1,704.4     539.8     1,241.4  
Operating expenses (2)   (233.5 )   (284.4 )   (228.8 )   (226.1 )   (230.9 )   (226.8 )   (229.1 )   (220.8 )   (217.3 )     (970.2 )   (894.0 )   (860.7 )
Gain / (loss) on debt extinguishments   -     -     -     -     -     -     (16.8 )   (21.5 )   (22.9 )     -     (61.2 )   (134.8 )
    Income / (Loss) from continuing operations before provision for                                                                          
    income taxes   122.7     153.8     206.3     205.4     168.7     298.5     (291.4 )   (58.1 )   (364.4 )     734.2     (415.4 )   245.9  
Provision for income taxes   (13.5 )   (28.6 )   (13.2 )   (29.3 )   (12.8 )   (37.0 )   (2.7 )   (38.5 )   (38.5 )     (83.9 )   (116.7 )   (157.0 )
    Income / (loss) from continuing operations, before attribution of                                                                          
    noncontrolling interests   109.2     125.2     193.1     176.1     155.9     261.5     (294.1 )   (96.6 )   (402.9 )     650.3     (532.1 )   88.9  
Net loss (income) attributable to noncontrolling interests, after tax   5.7     (2.2 )   (0.2 )   (0.5 )   (3.0 )   (0.8 )   (0.8 )   (1.2 )   (0.9 )     (5.9 )   (3.7 )   (5.0 )
Income (loss) from continuing operations   114.9     123.0     192.9     175.6     152.9     260.7     (294.9 )   (97.8 )   (403.8 )     644.4     (535.8 )   83.9  
 
Discontinued operation                                                                          
    Income / (loss) from discontinued operation   3.0     9.5     7.4     10.9     12.1     (46.7 )   (3.1 )   31.8     (21.4 )     39.9     (39.4 )   (67.5 )
    Provision for income taxes   (0.7 )   (2.6 )   (0.7 )   (2.9 )   (2.4 )   (7.2 )   (1.2 )   (6.9 )   (1.8 )     (8.6 )   (17.1 )   (1.6 )
    Income (loss) from discontinued operation, net of taxes   2.3     6.9     6.7     8.0     9.7     (53.9 )   (4.3 )   24.9     (23.2 )     31.3     (56.5 )   (69.1 )
Net income / (loss) $ 117.2   $ 129.9   $ 199.6   $ 183.6   $ 162.6   $ 206.8   $ (299.2 ) $ (72.9 ) $ (427.0 )   $ 675.7   $ (592.3 ) $ 14.8  
 
Earnings / (Loss) per common share:                                                                          
Basic earnings per share                                                                          
    Income from continuing operations $ 0.59   $ 0.62   $ 0.96   $ 0.87   $ 0.76   $ 1.30   $ (1.47 ) $ (0.49 ) $ (2.01 )   $ 3.21   $ (2.67 ) $ 0.42  
    Income (loss) from discontinued operation, net of taxes $ 0.01   $ 0.03   $ 0.03   $ 0.04   $ 0.05   $ (0.27 ) $ (0.02 ) $ 0.13   $ (0.12 )   $ 0.16   $ (0.28 ) $ (0.35 )
    Basic earnings per share $ 0.60   $ 0.65   $ 0.99   $ 0.91   $ 0.81   $ 1.03   $ (1.49 ) $ (0.36 ) $ (2.13 )   $ 3.37   $ (2.95 ) $ 0.07  
 
Diluted earnings per share                                                                          
    Income from continuing operations $ 0.58   $ 0.61   $ 0.95   $ 0.87   $ 0.76   $ 1.30   $ (1.47 ) $ (0.49 ) $ (2.01 )   $ 3.19   $ (2.67 ) $ 0.42  
    Income (loss) from discontinued operation, net of taxes $ 0.01   $ 0.04   $ 0.04   $ 0.04   $ 0.05   $ (0.27 ) $ (0.02 ) $ 0.13   $ (0.12 )   $ 0.16   $ (0.28 ) $ (0.35 )
    Diluted earnings per share $ 0.59   $ 0.65   $ 0.99   $ 0.91   $ 0.81   $ 1.03   $ (1.49 ) $ (0.36 ) $ (2.13 )   $ 3.35   $ (2.95 ) $ 0.07  
 
(1 ) Other Income                                                                          
    Factoring commissions $ 28.6   $ 31.0   $ 32.3   $ 29.0   $ 30.0   $ 32.2   $ 33.1   $ 28.9   $ 32.3     $ 122.3   $ 126.5   $ 132.5  
    Gains on sales of leasing equipment   8.4     43.7     30.7     33.8     22.3     40.5     34.6     23.1     19.4       130.5     117.6     148.4  
    Fee revenue   21.6     28.4     25.3     27.4     20.4     22.7     18.6     22.6     22.2       101.5     86.1     97.3  
    Gains (losses) on loan and portfolio sales   3.5     24.3     23.5     (4.5 )   5.5     3.6     4.7     11.9     142.1       48.8     162.3     290.8  
    Counterparty receivable accretion   2.0     2.9     0.9     1.9     2.9     40.3     3.0     36.0     9.4       8.6     88.7     101.4  
    Recoveries of loans charged off pre-emergence and loans HFS   5.2     5.1     6.3     6.3     4.2     17.4     8.6     18.0     10.3       21.9     54.3     124.1  
    Gains (losses) on investments   3.5     3.6     1.0     1.2     2.4     11.9     5.0     4.3     19.0       8.2     40.2     45.7  
    Gains (losses) on derivatives & foreign exchange   (7.1 )   (1.7 )   0.9     2.4     (0.6 )   (0.7 )   0.5     (3.3 )   (2.2 )     1.0     (5.7 )   (5.2 )
    Impairment on assets held for sale   (1.1 )   (34.7 )   (44.6 )   (22.1 )   (22.6 )   (37.4 )   (27.7 )   (28.4 )   (21.6 )     (124.0 )   (115.1 )   (89.0 )
    Other revenue   6.5     25.0     28.2     3.8     5.5     21.9     5.2     10.0     22.7       62.5     59.8     108.2  
    Total Other Income $ 71.1   $ 127.6   $ 104.5   $ 79.2   $ 70.0   $ 152.4   $ 85.6   $ 123.1   $ 253.6     $ 381.3   $ 614.7   $ 954.2  
 
(2 ) Operating Expenses                                                                          
    Compensation and benefits $ 138.9   $ 129.8   $ 133.0   $ 135.8   $ 136.8   $ 129.5   $ 138.1   $ 136.3   $ 133.2     $ 535.4   $ 537.1   $ 490.5  
    Technology   21.1     21.1     22.3     20.1     19.8     25.6     19.4     17.8     18.8       83.3     81.6     75.1  
    Professional fees   18.0     19.1     19.5     12.1     18.4     13.3     17.8     13.1     19.6       69.1     63.8     120.0  
    Advertising and marketing   7.9     7.5     3.7     6.3     7.7     9.2     10.2     11.2     5.9       25.2     36.5     10.5  
    Net occupancy expense   8.9     8.3     9.0     8.6     9.4     8.0     9.2     9.8     9.1       35.3     36.1     38.7  
    Provision for severance and facilities exiting activities   9.9     18.5     3.2     9.5     5.7     11.7     5.0     1.5     4.5       36.9     22.7     13.1  
    Other expenses**   28.8     80.1     38.1     33.7     33.1     29.5     29.4     31.1     26.2       185.0     116.2     112.8  
    Total Operating Expenses $ 233.5   $ 284.4   $ 228.8   $ 226.1   $ 230.9   $ 226.8   $ 229.1   $ 220.8   $ 217.3     $ 970.2   $ 894.0   $ 860.7  

 

*Previously included in rental income on operating leases and depreciation on operating lease equipment.
**Includes $45 million in 4Q13 and $5 million in 3Q13 related to the settlement of the Tyco Tax Agreement.
7
 

CIT Group Inc.
Income Statement - Segment Data
(dollars in millions)

    1Q 14   4Q 13   3Q 13   2Q 13   1Q 13   4Q 12   3Q 12   2Q 12     1Q 12       2013     2012     2011  
Transportation & International Finance                                                                            
Interest income $ 76.7   $ 69.6   $ 66.1   $ 62.6   $ 56.6   $ 52.4   $ 53.3   $ 52.0     $ 60.5     $ 254.9   $ 218.2   $ 236.1  
Rental income on operating leases   459.6     425.7     415.5     423.8     417.4     421.7     419.4     416.6     408.6       1,682.4     1,666.3     1,514.3  
Interest expense   (160.7 ) (151.1 )   (146.4 )   (143.9 )   (144.1 )   (124.4 )   (405.0 )   (308.8 )   (493.3 )     (585.5 )   (1,331.5 )   (965.8 )
Depreciation on operating lease equipment   (121.7 ) (113.0 )   (106.1 )   (106.2 )   (108.0 )   (103.0 )   (101.1 )   (99.3 )   (107.5 )     (433.3 )   (410.9 )   (363.1 )
Maintenance and other operating lease expenses*   (51.6 )   (39.0 )   (41.4 )   (40.2 )   (42.4 )   (31.8 )   (38.1 )   (35.6 )     (33.8 )     (163.0 )   (139.3 )   (157.8 )
Net finance revenue   202.3     192.2     187.7     196.1     179.5     214.9     (71.5 )   24.9     (165.5 )     755.5     2.8     263.7  
Other income   7.2     7.1     31.4     26.9     16.8     11.9     19.3     19.1       15.5       82.2     65.8     118.4  
Provision for credit losses   (12.4 )   (14.6 )   (6.0 )   (3.7 )   5.6     (3.1 )   (13.0 )   (5.4 )     7.0       (18.7 )   (14.5 )   (20.5 )
Other expenses - including gain / (loss) on debt extinguishment   (79.5 )   (67.9 )   (62.5 )   (61.5 )   (63.4 )   (57.1 )   (54.5 )   (52.7 )     (56.0 )     (255.3 )   (220.3 )   (198.0 )
Income (Loss) before taxes & noncontrolling interests   117.6     116.8     150.6     157.8     138.5     166.6     (119.7 )   (14.1 )   (199.0 )     563.7     (166.2 )   163.6  
 
North American Commercial Finance                                                                            
Interest income $ 193.4   $ 199.7   $ 199.6   $ 210.0   $ 219.3   $ 220.7   $ 228.1   $ 260.7   $ 267.0     $ 828.6   $ 976.5   $ 1,460.9  
Rental income on operating leases   22.8     27.2     27.2     25.8     23.8     24.3     22.3     25.7       27.1       104.0     99.4     101.2  
Interest expense   (68.9 )   (67.2 )   (66.9 )   (71.6 )   (78.6 )   (85.0 )   (188.0 )   (173.9 )   (304.0 )     (284.3 )   (750.9 )   (954.3 )
Depreciation on operating lease equipment   (21.9 )   (20.4 )   (19.8 )   (18.6 )   (16.3 )   (16.7 )   (18.0 )   (18.4 )     (18.8 )     (75.1 )   (71.9 )   (98.3 )
Maintenance and other operating lease expenses*   -     -     -     -     -     -     -     -       -       -     -     -  
Net finance revenue   125.4     139.3     140.1     145.6     148.2     143.3     44.4     94.1       (28.7 )     573.2     253.1     509.5  
Other income   61.8     106.5     71.5     64.8     63.7     129.8     70.6     112.6     242.2       306.5     555.2     725.2  
Provision for credit losses   (23.2 )   2.5     (8.3 )   (4.8 )   (24.9 )   6.4     9.7     (10.1 )     (50.0 )     (35.5 )   (44.0 )   (228.4 )
Other expenses - including gain / (loss) on debt extinguishment   (121.5 ) (113.3 )   (119.7 )   (118.4 )   (128.1 )   (115.9 )   (125.3 )   (123.3 )   (132.5 )     (479.5 )   (497.0 )   (448.5 )
Income (Loss) before taxes & noncontrolling interests   42.5     135.0     83.6     87.2     58.9     163.6     (0.6 )   73.3       31.0       364.7     267.3     557.8  
 
Non-Strategic Portfolios                                                                            
Interest income $ 28.4   $ 33.5   $ 37.0   $ 42.8   $ 43.9   $ 43.7   $ 45.0   $ 46.0     $ 45.6     $ 157.2   $ 180.3   $ 254.1  
Rental income on operating leases   9.5     10.9     30.2     34.7     35.2     34.3     33.4     33.2       34.2       111.0     135.1     170.1  
Interest expense   (24.9 )   (30.7 )   (29.9 )   (32.8 )   (36.8 )   (30.7 )   (74.0 )   (60.8 )     (96.9 )     (130.2 )   (262.4 )   (258.4 )
Depreciation on operating lease equipment   (5.2 )   (6.1 )   (8.3 )   (8.8 )   (9.0 )   (7.8 )   (7.4 )   (7.6 )     (7.6 )     (32.2 )   (30.4 )   (77.2 )
Maintenance and other operating lease expenses*   -     -     -     (0.1 )   -     (0.1 )   -     -       -       (0.1 )   (0.1 )   -  
Net finance revenue   7.8     7.6     29.0     35.8     33.3     39.4     (3.0 )   10.8       (24.7 )     105.7     22.5     88.6  
Other income   4.4     12.4     (1.1 )   (16.0 )   (9.9 )   9.2     (7.2 )   (3.9 )     (7.2 )     (14.6 )   (9.1 )   108.0  
Provision for credit losses   (1.0 )   (2.2 )   (2.2 )   (6.1 )   (0.3 )   (3.1 )   3.3     6.6       0.5       (10.8 )   7.3     (20.8 )
Other expenses - including gain / (loss) on debt extinguishment   (19.2 )   (34.2 )   (36.2 )   (34.2 )   (38.5 )   (33.5 )   (41.9 )   (32.7 )     (37.6 )     (143.1 )   (145.7 )   (170.1 )
Income (Loss) before taxes & noncontrolling interests   (8.0 )   (16.4 )   (10.5 )   (20.5 )   (15.4 )   12.0     (48.8 )   (19.2 )     (69.0 )     (62.8 )   (125.0 )   5.7  
 
Corporate and Other                                                                            
Interest income $ 3.7   $ 4.4   $ 3.7   $ 3.7   $ 2.7   $ 5.0   $ 4.9   $ 4.5     $ 4.6     $ 14.5   $ 19.0   $ 20.8  
Rental income on operating leases   -     -     -     -     -     -     -     -       -       -     -     -  
Interest expense   (17.4 )   (18.5 )   (13.5 )   (14.3 )   (14.6 )   (29.7 )   (105.9 )   (64.3 )   (121.0 )     (60.9 )   (320.9 )   (325.7 )
Depreciation on operating lease equipment   -     -     -     -     -     -     -     -       -       -     -     -  
Maintenance and other operating lease expenses*   -     -     -     -     -     -     -     -       -       -     -     -  
Net finance revenue   (13.7 )   (14.1 )   (9.8 )   (10.6 )   (11.9 )   (24.7 )   (101.0 )   (59.8 )   (116.4 )     (46.4 )   (301.9 )   (304.9 )
Other income   (2.3 )   1.6     2.7     3.5     (0.6 )   1.5     2.9     (4.7 )     3.1       7.2     2.8     2.6  
Provision for credit losses   (0.1 )   (0.1 )   0.1     -     0.1     (0.2 )   -     -       -       0.1     (0.2 )   -  
Other expenses - including gain / (loss) on debt extinguishment   (13.3 )   (69.0 )   (10.4 )   (12.0 )   (0.9 )   (20.3 )   (24.2 )   (33.6 )     (14.1 )     (92.3 )   (92.2 )   (178.9 )
Income (Loss) before taxes & noncontrolling interests   (29.4 )   (81.6 )   (17.4 )   (19.1 )   (13.3 )   (43.7 )   (122.3 )   (98.1 )   (127.4 )     (131.4 )   (391.5 )   (481.2 )
 
Total                                                                            
Interest income $ 302.2   $ 307.2   $ 306.4   $ 319.1   $ 322.5   $ 321.8   $ 331.3   $ 363.2   $ 377.7     $ 1,255.2   $ 1,394.0   $ 1,971.9  
Rental income on operating leases   491.9     463.8     472.9     484.3     476.4     480.3     475.1     475.5     469.9       1,897.4     1,900.8     1,785.6  
Interest expense   (271.9 ) (267.5 )   (256.7 )   (262.6 )   (274.1 )   (269.8 )   (772.9 )   (607.8 )   (1,015.2 )     (1,060.9 )   (2,665.7 )   (2,504.2 )
Depreciation on operating lease equipment   (148.8 ) (139.5 )   (134.2 )   (133.6 )   (133.3 )   (127.5 )   (126.5 )   (125.3 )   (133.9 )     (540.6 )   (513.2 )   (538.6 )
Maintenance and other operating lease expenses*   (51.6 )   (39.0 )   (41.4 )   (40.3 )   (42.4 )   (31.9 )   (38.1 )   (35.6 )     (33.8 )     (163.1 )   (139.4 )   (157.8 )
Net finance revenue   321.8     325.0     347.0     366.9     349.1     372.9     (131.1 )   70.0     (335.3 )     1,388.0     (23.5 )   556.9  
Other income   71.1     127.6     104.5     79.2     70.0     152.4     85.6     123.1     253.6       381.3     614.7     954.2  
Provision for credit losses   (36.7 )   (14.4 )   (16.4 )   (14.6 )   (19.5 )   -     -     (8.9 )     (42.5 )     (64.9 )   (51.4 )   (269.7 )
Other expenses - including gain / (loss) on debt extinguishment   (233.5 ) (284.4 )   (228.8 )   (226.1 )   (230.9 )   (226.8 )   (245.9 )   (242.3 )   (240.2 )     (970.2 )   (955.2 )   (995.5 )
Income (Loss) before taxes & noncontrolling interests   122.7     153.8     206.3     205.4     168.7     298.5     (291.4 )   (58.1 )   (364.4 )     734.2     (415.4 )   245.9  
                                                                           

* Previously included in rental income on operating leases and depreciation on operating lease equipment.                                                          

 

8
 

CIT Group Inc.
Division Data
(dollars in millions)

 
  1Q 14 4Q 13 3Q 13 2Q 13 1Q 13 4Q 12 3Q 12 2Q 12 1Q 12   2013   2012   2011  
Transportation & International Finance                                                  
Average Earning Assets (AEA)                                                  
Aerospace 9,773.9   9,346.0   9,146.4   9,346.6   9,400.0   9,390.6   9,427.8   9,372.9   9,250.3     9,317.9   9,358.3   8,320.0  
Rail 5,137.9   4,515.5   4,339.9   4,254.2   4,212.2   4,104.3   3,971.1   3,839.0   3,720.4     4,332.4   3,905.3   3,654.2  
Maritime 473.9   376.4   350.0   305.7   208.3   -   -   -   -     300.1   -   -  
International Finance 1,734.0   1,690.9   1,581.5   1,409.9   1,263.5   1,172.7   1,044.6   954.5   856.7     1,484.2   1,005.6   717.9  
 
Gross Yield (1)                                                  
Aerospace 12.56 % 12.14 % 12.25 % 12.40 % 12.18 % 12.29 % 12.51 % 12.67 % 12.65 %   12.23 % 12.53 % 13.28 %
Rail 14.56 % 14.67 % 14.77 % 14.75 % 14.58 % 14.91 % 14.74 % 14.90 % 14.87 %   14.69 % 14.87 % 13.98 %
Maritime Finance 4.88 % 9.53 % 5.97 % 7.12 % 7.44 % -   -   -   -     7.83 % -   -  
International Finance 8.46 % 8.81 % 9.13 % 9.77 % 9.58 % 11.11 % 12.08 % 11.98 % 17.82 %   9.30 % 13.01 % 18.79 %
 
Total                                                  
AEA 17,119.7   15,928.8   15,417.8   15,316.4   15,084.0   14,667.6   14,443.5   14,166.4   13,827.4     15,434.6   14,269.2   12,692.1  
Gross Yield 12.53 % 12.44 % 12.49 % 12.70 % 12.57 % 12.93 % 13.09 % 13.23 % 13.57 %   12.55 % 13.21 % 13.79 %
Net Finance Margin 4.73 % 4.83 % 4.87 % 5.12 % 4.76 % 5.86 % -1.98 % 0.70 % -4.79 %   4.89 % 0.02 % 2.08 %
Adjusted Net Finance Margin (2) 4.73 % 4.83 % 4.87 % 5.24 % 5.02 % 5.94 % 4.29 % 4.31 % 3.16 %   4.99 % 4.45 % 2.74 %
 
North American Commercial Finance                                                  
Average Earning Assets (AEA)                                                  
Real Estate Finance 1,592.9   1,391.9   1,291.3   1,069.9   773.1   477.1   318.9   192.0   44.2     1,119.0   257.5   68.7  
Corporate Finance 6,991.6   6,916.2   6,767.7   6,607.4   6,538.5   6,474.2   6,370.8   6,128.8   5,986.7     6,710.2   6,229.5   5,938.2  
Equipment Finance 4,239.5   4,212.4   4,141.7   4,106.8   3,915.3   3,745.3   3,768.5   3,778.0   3,861.9     4,083.3   3,787.8   4,317.6  
Commercial Services 940.7   936.0   955.3   1,059.1   1,065.8   996.0   1,059.9   1,100.6   1,196.8     1,003.7   1,087.9   1,383.9  
 
Gross Yield (1)                                                  
Real Estate Finance 3.99 % 4.02 % 4.22 % 4.08 % 4.31 % 4.38 % 3.76 % 3.94 % 1.98 %   4.19 % 4.01 % 14.06 %
Corporate Finance 5.02 % 5.34 % 5.38 % 5.94 % 6.58 % 6.76 % 7.10 % 9.39 % 9.45 %   5.80 % 8.15 % 13.25 %
Equipment Finance 9.54 % 10.25 % 10.53 % 10.92 % 11.51 % 12.42 % 12.67 % 13.39 % 14.29 %   10.82 % 13.20 % 16.03 %
Commercial Services 4.86 % 5.39 % 5.50 % 5.51 % 5.47 % 5.63 % 5.63 % 5.14 % 4.85 %   5.47 % 5.30 % 5.29 %
 
Total                                                  
AEA 13,764.7   13,456.5   13,156.0   12,843.2   12,292.7   11,692.6   11,518.1   11,199.4   11,089.6     12,916.2   11,362.7   11,708.4  
Gross Yield 6.28 % 6.74 % 6.90 % 7.34 % 7.91 % 8.38 % 8.70 % 10.23 % 10.61 %   7.22 % 9.47 % 13.34 %
Net Finance Margin 3.64 % 4.14 % 4.26 % 4.53 % 4.82 % 4.90 % 1.54 % 3.36 % -1.04 %   4.44 % 2.23 % 4.35 %
Adjusted Net Finance Margin (2) 3.64 % 4.14 % 4.26 % 4.61 % 5.02 % 4.99 % 6.23 % 6.40 % 6.66 %   4.50 % 6.06 % 4.89 %

 

(1)Gross Yield includes Rental Income plus Interest Income as a % of AEA.
(2)Excludes accelerated FSA on debt redemptions and OID.

9
 

CIT Group Inc.
Financing and Leasing Assets
(dollars in millions)

   3/31/2014  12/31/2013  9/30/2013  6/30/2013  3/31/2013  12/31/2012  9/30/2012  6/30/2012  3/31/2012  12/31/2013    12/31/2012  12/31/2011
Transportation & International Finance                                                           
Loans  $3,553.5   $3,494.4   $3,239.5   $3,114.6   $2,958.0   $2,556.5   $2,353.6   $2,224.9   $2,150.5   $3,494.4   $2,556.5   $1,848.1
Operating Lease Equipment, Net   13,926.9    12,778.5    12,303.5    12,041.9    12,024.6    12,178.0    11,869.4    11,696.8    11,697.7    12,778.5    12,178.0    11,770.7
Assets Held for Sale   92.6    158.5    82.4    273.4    214.1    173.6    371.4    394.5    161.6    158.5    173.6    84.0
Financing and Leasing Assets   17,573.0    16,431.4    15,625.4    15,429.9    15,196.7    14,908.1    14,594.4    14,316.2    14,009.8    16,431.4    14,908.1    13,702.8
North American Commercial Finance                                                           
Loans   14,902.8    14,693.1    14,454.2    14,049.1    14,094.2    13,084.4    12,777.7    12,499.9    12,256.2   $14,693.1   $13,084.4   $11,894.7
Operating Lease Equipment, Net   210.1    240.5    228.4    218.5    183.8    150.9    145.0    147.5    150.7    240.5    150.9    169.4
Assets Held for Sale   67.0    38.2    32.2    18.1    8.5    42.1    90.8    76.1    37.8    38.2    42.1    186.6
Financing and Leasing Assets   15,179.9    14,971.8    14,714.8    14,285.7    14,286.5    13,277.4    13,013.5    12,723.5    12,444.7    14,971.8    13,277.4    12,250.7
Non-Strategic Portfolios                                                           
Loans   115.4    441.7    677.3    991.6    1,473.5    1,512.2    1,499.3    1,477.6    1,518.4   $441.7   $1,512.2   $1,483.0
Operating Lease Equipment, Net   45.4    16.4    45.2    65.8    82.2    82.8    72.3    66.9    70.5    16.4    82.8    66.3
Assets Held for Sale   959.8    806.7    1,007.6    895.1    424.2    429.1    418.1    404.8    420.9    806.7    429.1    410.1
Financing and Leasing Assets   1,120.6    1,264.8    1,730.1    1,952.5    1,979.9    2,024.1    1,989.7    1,949.3    2,009.8    1,264.8    2,024.1    1,959.4
Total                                                           
Loans  $18,571.7   $18,629.2   $18,371.0   $18,155.3   $18,525.7   $17,153.1   $16,630.6   $16,202.4   $15,925.1   $18,629.2   $17,153.1   $15,225.8
Operating Lease Equipment, Net   14,182.4    13,035.4    12,577.1    12,326.2    12,290.6    12,411.7    12,086.7    11,911.2    11,918.9    13,035.4    12,411.7    12,006.4
Assets Held for Sale   1,119.4    1,003.4    1,122.2    1,186.6    646.8    644.8    880.3    875.4    620.3    1,003.4    644.8    680.7
Financing and Leasing Assets   33,873.5    32,668.0    32,070.3    31,668.1    31,463.1    30,209.6    29,597.6    28,989.0    28,464.3    32,668.0    30,209.6    27,912.9
                                                            
   1Q14  4Q13  3Q13  2Q13  1Q13  4Q12  3Q12  2Q12  1W12  2013  2012  2011
Funded New Business Volume (by Segment)                                                           
Transportation & International Finance  $1,054.6   $1,265.7   $982.0   $907.3   $423.0   $914.7   $650.8   $790.7   $469.5   $3,578.0   $2,825.7   $2,759.3
North American Commercial Finance, excluding factoring   1,372.9    1,778.7    1,423.8    1,709.4    1,333.0    1,891.2    1,293.3    1,364.7    1,313.7    6,244.9    5,862.9    4,135.1
Non-Strategic Portfolios   51.8    98.1    169.6    259.9    185.4    251.5    227.1    215.8    217.2    713.0    911.6    909.3
New Business Volume, excluding factoring  $2,479.3   $3,142.5   $2,575.4   $2,876.6   $1,941.4   $3,057.4   $2,171.2   $2,371.2   $2,000.4   $10,535.9   $9,600.2   $7,803.7

 

10
 

CIT Group Inc.
Financing and Leasing Assets - Division
(dollars in millions)

   3/31/2014  12/31/2013  9/30/2013  6/30/2013  3/31/2013  12/31/2012  9/30/2012  6/30/2012  3/31/2012  12/31/2013   12/31/2012  12/31/2011
Transportation & International Finance                                                            
Aerospace                                                            
Loans  $1,247.1   $1,247.7   $1,145.6   $1,233.5   $1,181.8   $1,217.6   $1,104.9   $1,094.0   $1,079.8   $1,247.7   $1,217.6   $904.8 
Operating Lease Equipment, Net   8,595.5    8,267.9    7,963.6    7,845.2    7,908.2    8,105.2    7,945.0    7,912.2    8,073.6    8,267.9    8,105.2    8,234.3 
Assets Held for Sale   24.8    148.8    62.7    268.6    213.9    171.8    368.7    384.2    146.4    148.8    171.8    58.5 
Financing and Leasing Assets   9,867.4    9,664.4    9,171.9    9,347.3    9,303.9    9,494.6    9,418.6    9,390.4    9,299.8    9,664.4    9,494.6    9,197.6 
Rail                                                            
Loans   123.3    107.2    97.2    118.4    128.2    117.0    146.9    155.2    161.1   $107.2   $117.0   $151.6 
Operating Lease Equipment, Net   5,325.0    4,503.9    4,332.8    4,181.7    4,099.5    4,060.7    3,909.2    3,766.9    3,602.6    4,503.9    4,060.7    3,511.5 
Assets Held for Sale   1.4    3.3    4.4    4.8    0.2    1.8    2.7    10.3    15.2    3.3    1.8    25.5 
Financing and Leasing Assets   5,449.7    4,614.4    4,434.4    4,304.9    4,227.9    4,179.5    4,058.8    3,932.4    3,778.9    4,614.4    4,179.5    3,688.6 
Maritime Finance                                                            
Loans   529.8    412.6    365.0    302.8    290.7    -    -    -    -   $412.6   $-   $- 
Operating Lease Equipment, Net   -    -    -    7.2    7.5    -    -    -    -    -    -    - 
Assets Held for Sale   -    -    -    -    -    -    -    -    -    -    -    - 
Financing and Leasing Assets   529.8    412.6    365.0    310.0    298.2    -    -    -    -    412.6    -    - 
International Finance                                                            
Loans   1,653.3    1,726.9    1,631.7    1,459.9    1,357.3    1,221.9    1,101.8    975.7    909.6   $1,726.9   $1,221.9   $791.7 
Operating Lease Equipment, Net   6.4    6.7    7.1    7.8    9.4    12.1    15.2    17.7    21.5    6.7    12.1    24.9 
Assets Held for Sale   66.4    6.4    15.3    -    -    -    -    -    -    6.4    -    - 
Financing and Leasing Assets   1,726.1    1,740.0    1,654.1    1,467.7    1,366.7    1,234.0    1,117.0    993.4    931.1    1,740.0    1,234.0    816.6 
North American Commercial Finance                                                            
Real Estate Finance                                                            
Loans   1,615.2    1,554.8    1,330.5    1,235.1    992.2    616.1    361.1    268.9    151.8   $1,554.8   $616.1   $1.0 
Operating Lease Equipment, Net   -    -    -    -    -    -    -    -    -    -    -    - 
Assets Held for Sale   -    -    -    -    -    -    -    -    -    -    -    23.0 
Financing and Leasing Assets   1,615.2    1,554.8    1,330.5    1,235.1    992.2    616.1    361.1    268.9    151.8    1,554.8    616.1    24.0 
Corporate Finance                                                            
Loans   6,974.3    6,831.8    6,866.8    6,575.8    6,650.5    6,501.0    6,380.1    6,207.8    6,016.9   $6,831.8   $6,501.0   $5,680.2 
Operating Lease Equipment, Net   11.5    6.2    6.8    7.4    8.0    16.2    18.7    22.9    23.9    6.2    16.2    37.2 
Assets Held for Sale   67.0    38.2    32.2    18.1    8.5    34.1    82.8    68.1    37.8    38.2    34.1    163.6 
Financing and Leasing Assets   7,052.8    6,876.2    6,905.8    6,601.3    6,667.0    6,551.3    6,481.6    6,298.8    6,078.6    6,876.2    6,551.3    5,881.0 
Equipment Finance                                                            
Loans   4,041.6    4,044.1    3,961.1    3,926.0    3,926.3    3,662.0    3,628.2    3,651.9    3,699.3   $4,044.1   $3,662.0   $3,782.1 
Operating Lease Equipment, Net   198.6    234.3    221.6    211.1    175.8    134.7    126.3    124.6    126.8    234.3    134.7    132.2 
Assets Held for Sale   -    -    -    -    -    8.0    8.0    8.0    -    -    8.0    - 
Financing and Leasing Assets   4,240.2    4,278.4    4,182.7    4,137.1    4,102.1    3,804.7    3,762.5    3,784.5    3,826.1    4,278.4    3,804.7    3,914.3 
Commercial Services                                                            
Loans and Factoring Receivables   2,271.7    2,262.4    2,295.8    2,312.2    2,525.2    2,305.3    2,408.3    2,371.3    2,388.2   $2,262.4   $2,305.3   $2,431.4 
Operating Lease Equipment, Net   -    -    -    -    -    -    -    -    -    -    -    - 
Assets Held for Sale   -    -    -    -    -    -    -    -    -    -    -    - 
Financing and Leasing Assets   2,271.7    2,262.4    2,295.8    2,312.2    2,525.2    2,305.3    2,408.3    2,371.3    2,388.2    2,262.4    2,305.3    2,431.4 

 

11
 

CIT Group Inc.
Credit Metrics
(dollars in millions, % of FR or average FR)

    1Q 14   4Q 13   3Q 13   2Q 13   1Q 13   4Q 12   3Q 12   2Q 12   1Q 12   2013     2012     2011  
    $ %     $ %     $ %     $   %   $   %     $ %     $ %     $ %     $   %   $   %     $ %     $ %  
Gross Charge-offs                                                                                                    
Transportation & International Finance $ 14.3 1.61 % $ 13.0 1.55 % $ 7.5 0.93 % $ 1.3   0.17 % $ 4.2 0.60 % $ 2.9 0.48 % $ 6.0 1.06 % $ 4.7 0.87 % $ 2.1   0.42 % $ 26.0 0.84 % $ 15.7 0.71 % $ 18.0 1.06 %
North American Commercial Finance   22.6 0.61 %   10.4 0.28 %   16.4 0.46 %   17.3   0.50 %   14.2 0.42 %   24.6 0.76 %   24.6 0.78 %   17.8 0.58 %   31.9   1.06 %   58.3 0.42 %   98.9 0.80 %   301.5 2.44 %
Non-Strategic Portfolios   7.5 9.94 %   6.2 4.05 %   12.7 5.53 %   29.5   8.17 %   5.9 1.60 %   6.6 1.78 %   4.9 1.31 %   5.4 1.45 %   10.2   2.70 %   54.3 4.82 %   27.1 1.81 %   49.3 3.23 %
Total CIT (Continuing Operations) $ 44.4 0.95 % $ 29.6 0.64 % $ 36.6 0.80 % $ 48.1   1.04 % $ 24.3 0.55 % $ 34.1 0.81 % $ 35.5 0.87 % $ 27.9 0.70 % $ 44.2   1.14 % $ 138.6 0.76 % $ 141.7 0.88 % $ 368.8 2.36 %
 
Net Charge-offs                                                                                                    
Transportation & International Finance $ 13.0 1.47 % $ 11.7 1.40 % $ 5.0 0.63 % $ (0.9 ) -0.12 % $ 1.1 0.15 % $ 1.7 0.28 % $ 5.0 0.89 % $ 3.5 0.65 % $ (3.2 ) -0.64 % $ 16.9 0.55 % $ 7.0 0.32 % $ 12.1 0.71 %
North American Commercial Finance   16.0 0.43 %   (2.3) -0.06 %   10.7 0.30 %   4.3   0.12 %   5.8 0.17 %   11.5 0.36 %   11.9 0.38 %   10.8 0.35 %   18.3   0.61 %   18.5 0.13 %   52.5 0.42 %   221.3 1.79 %
Non-Strategic Portfolios   6.6 8.77 %   5.6 3.60 %   11.4 4.95 %   25.7   7.13 %   2.6 0.71 %   4.2 1.11 %   1.1 0.28 %   2.4 0.68 %   6.9   1.83 %   45.3 4.01 %   14.6 0.98 %   31.8 2.08 %
Total CIT (Continuing Operations) $ 35.6 0.76 % $ 15.0 0.32 % $ 27.1 0.59 % $ 29.1   0.63 % $ 9.5 0.22 % $ 17.4 0.41 % $ 18.0 0.44 % $ 16.7 0.42 % $ 22.0   0.57 % $ 80.7 0.44 % $ 74.1 0.46 % $ 265.2 1.70 %
 
 
  3/31/2014   12/31/2013   9/30/2013   6/30/2013   3/31/2013   12/31/2012   9/30/2012   6/30/2012   3/31/2012   12/31/2013   12/31/2012   12/31/2011  
Non-accrual Loans                                                                                                    
Transportation & International Finance $ 35.9 1.01 % $ 35.3 1.01 % $ 22.7 0.70 % $ 28.3   0.91 % $ 23.6 0.80 % $ 39.0 1.52 % $ 51.9 2.20 % $ 10.4 0.47 % $ 18.7   0.87 % $ 35.3 1.01 % $ 39.0 1.52 % $ 35.2 1.90 %
North American Commercial Finance   131.3 0.88 %   147.4 1.00 %   167.0 1.16 %   178.2   1.27 %   196.5 1.39 %   217.8 1.66 %   276.1 2.16 %   353.5 2.83 %   342.1   2.79 %   147.4 1.00 %   217.8 1.66 %   516.3 4.34 %
Non-Strategic Portfolios   51.2 44.37 %   58.0 13.14 %   68.6 10.13 %   72.0   7.26 %   74.0 5.01 %   73.3 4.85 %   83.7 5.58 %   90.6 6.13 %   120.8   7.95 %   58.0 13.14 %   73.3 4.85 %   149.9 10.11 %
Total CIT (Continuing Operations) $ 218.4 1.18 % $ 240.7 1.29 % $ 258.3 1.41 % $ 278.5   1.53 % $ 294.1 1.59 % $ 330.1 1.92 % $ 411.7 2.48 % $ 454.5 2.80 % $ 481.6   3.02 % $ 240.7 1.29 % $ 330.1 1.92 % $ 701.4 4.61 %

 

12
 

CIT Group Inc.
Selected Data & Ratios
(dollars in millions, except per share data)

   1Q 14  4Q 13  3Q 13  2Q 13  1Q 13  4Q 12  3Q 12  2Q 12  1Q 12  2013  2012  2011
Average Balances:                                                            
Average Finance Receivables (AFR)  $18,655.1   $18,562.5   $18,394.9   $18,447.8   $17,676.7   $16,791.4   $16,352.2   $15,925.6   $15,498.4   $18,248.0   $16,116.3   $15,605.8 
Average Earning Assets (AEA) (1)   32,070.2    30,753.0    30,418.2    30,121.4    29,376.1    28,353.1    27,922.6    27,336.7    26,903.5    30,122.4    27,608.6    26,681.8 
Average Operating Leases (AOL)   13,735.8    12,757.1    12,383.9    12,295.8    12,369.1    12,210.7    12,017.3    12,014.5    11,973.6    12,463.8    12,072.9    11,228.9 
Average Common Stockholders' Equity   8,807.8    8,855.6    8,779.9    8,605.6    8,422.4    8,233.2    8,361.3    8,440.4    8,780.7    8,664.4    8,484.0    8,883.6 
Average number of Common Shares - Basic (000's)   196,089    198,774    200,811    201,313    201,149    200,916    200,917    200,901    200,812    200,503    200,887    200,678 
Average number of Common Shares - Diluted (000's)   197,047    200,394    202,329    202,313    201,779    201,142    200,917    200,901    200,812    201,695    200,887    200,815 
                                                              
Profitability Measures:                                                            
Gross Yield (2)   9.90%   10.03%   10.25%   10.67%   10.88%   11.32%   11.55%   12.27%   12.60%   10.47%   11.93%   14.08%
Net Yield (3)   7.41%   7.71%   7.94%   8.36%   8.49%   9.07%   9.19%   9.92%   10.11%   8.13%   9.57%   11.47%
Net Finance Revenue as percentage of AEA (Finance Margin) (1)   4.01%   4.23%   4.56%   4.87%   4.75%   5.26%   -1.88%   1.02%   -4.99%   4.61%   -0.09%   2.09%
Adjusted Net Finance Margin   4.01%   4.29%   4.56%   4.97%   4.99%   5.36%   4.44%   4.81%   3.65%   4.71%   4.58%   3.56%
SG&A as percentage of AEA (4)   2.79%   3.46%   2.97%   2.88%   3.07%   3.03%   3.21%   3.21%   3.16%   3.10%   3.16%   3.18%
Efficiency Ratio (5)   56.9%   58.7%   50.0%   48.6%   53.7%   40.9%   -492.5%   113.6%   -260.5%   52.7%   147.4%   56.1%
Return on Average Earning Assets (ROA)   1.43%   1.60%   2.54%   2.33%   2.08%   3.68%   -4.22%   -1.43%   -6.00%   2.14%   -1.94%   0.31%
Return on Average Common Stockholders' Equity (ROE)   5.2%   5.6%   8.8%   8.2%   7.3%   12.7%   -14.1%   -4.6%   -18.4%   7.4%   -6.3%   0.9%
                                                              
    3/31/2014   12/31/2013   9/30/2013   6/30/2013   3/31/2013   12/31/2012   9/30/2012   6/30/2012   3/31/2012   12/31/2013   12/31/2012   12/31/2011
Capital & Leverage:                                                            
Risk-weighted Assets  $51,752.3   $50,571.2   $50,533.0   $50,718.0   $49,313.4   $48,616.9   $45,929.1   $44,251.2   $45,531.5   $50,571.2   $48,616.9   $44,824.1 
Tier 1 Capital   8,333.4    8,439.5    8,451.1    8,278.0    8,064.3    7,894.9    7,669.6    7,945.9    8,009.1    8,439.5    7,894.9    8,425.9 
Total Capital   8,686.2    8,791.2    8,803.2    8,639.7    8,442.3    8,263.6    8,055.8    8,343.9    8,416.3    8,791.2    8,263.6    8,819.2 
Tier 1 Capital Ratio   16.1%   16.7%   16.7%   16.3%   16.4%   16.2%   16.7%   18.0%   17.6%   16.7%   16.2%   18.8%
Total Capital Ratio   16.8%   17.4%   17.4%   17.0%   17.1%   17.0%   17.5%   18.9%   18.5%   17.4%   17.0%   19.7%
                                                              
Outstanding Common Shares - Basic (000's)   195,030    197,404    200,302    201,030    201,247    200,869    200,850    200,837    200,817    197,404    200,869    200,660 
Book Value per Common Share  $45.10   $44.78   $44.16   $43.16   $42.21   $41.49   $40.37   $41.79   $42.17   $44.78   $41.49   $44.27 
Tangible Book Value per Common Share  $42.94   $42.98   $42.36   $41.33   $40.35   $39.61   $38.47   $39.86   $40.19   $42.98   $39.61   $42.23 

 

(1)See Non-GAAP Disclosures.
(2)Gross Yield includes Rental Income plus Interest Income as a % of AEA.
(3)Net Yield includes Rental Income plus Interest Income less Depreciation and Maintenance & operating lease expenses as a % of AEA.
(4)Excludes provision for severance and facility exiting activities.
(5)Ratio of operating expenses (excluding the provision for severance and facility exiting activities) to Total Net Revenues (see Non-GAAP disclosures).
13
 

CIT Bank
Select Financial Data
(dollars in millions)

  3/31/2014  12/31/2013  9/30/2013  6/30/2013  3/31/2013  12/31/2012  9/30/2012  6/30/2012  3/31/2012  12/31/2013  12/31/2012  12/31/2011
Balance Sheet                                                           
Assets                                                           
Cash and deposits with banks $2,377.2   $ 2,528.6   $ 2,459.7   $ 2,549.4   $2,795.6   $3,351.3   $3,602.7   $2,976.9   $2,564.5   $2,528.6   $3,351.3   $2,462.1 
Investment securities  236.4    234.6    170.0    174.4    126.3    123.3    85.2    80.8    162.9    234.6    123.3    166.7 
Assets held for sale  95.0    104.5    79.0    17.8    8.2    37.7    602.5    595.8    1,079.5    104.5    37.7    1,627.5 
Loans  12,562.0    12,032.6    10,850.6    10,208.1    9,583.6    8,060.5    6,771.1    5,996.2    5,534.0    12,032.6    8,060.5    4,500.1 
Allowance for loan losses  (223.3)   (212.9)   (189.7)   (165.2)   (151.7)   (134.6)   (86.9)   (75.7)   (60.9)   (212.9)   (134.6)   (49.4)
Loans, net of allowances for loan losses  12,338.7    11,819.7    10,660.9    10,042.9    9,431.9    7,925.9    6,684.2    5,920.5    5,473.1    11,819.7    7,925.9    4,450.7 
Operating lease equipment, net  1,530.6    1,248.9    1,100.4    946.8    788.4    621.6    455.5    274.6    91.1    1,248.9    621.6    9.2 
Other assets  188.5    195.0    196.3    135.3    154.4    164.6    169.0    176.2    227.9    195.0      164.6      249.3 
Total Assets $16,766.4   $16,131.3   $14,666.3   $13,866.6   $13,304.8   $12,224.4   $11,599.1   $10,024.8   $9,599.0   $16,131.3   $12,224.4   $8,965.5 
Liabilities & Equity                                                           
Deposits $13,129.8   $12,496.2   $11,784.4   $11,111.1   $10,627.5   $9,614.7   $8,640.2   $7,080.6   $6,731.7   $12,496.2   $9,614.7   $6,123.8 
Long-term borrowings  762.5    854.6    147.1    49.3    47.2    49.6    487.6    504.0    511.5    854.6    49.6    576.7 
Other liabilities  244.8    183.9    181.5    184.5    153.3    122.7    102.0    109.1    147.1    183.9      122.7      148.0 
Total Liabilities  14,137.1    13,534.7    12,113.0    11,344.9    10,828.0    9,787.0    9,229.8    7,693.7    7,390.3    13,534.7    9,787.0    6,848.5 
Stockholders' Equity  2,629.3    2,596.6    2,553.3    2,521.7    2,476.8    2,437.4    2,369.3    2,331.1    2,208.7    2,596.6      2,437.4      2,117.0 
Total Liabilities and Equity $16,766.4   $16,131.3   $14,666.3   $13,866.6   $13,304.8   $12,224.4   $11,599.1   $10,024.8   $9,599.0   $16,131.3   $12,224.4   $8,965.5 
Financing and Leasing Assets by Segment                                                           
North American Commercial Finance $11,105.6   $10,701.1   $9,825.7   $9,128.8   $8,586.6   $7,280.7   $6,203.8   $5,472.1   $4,448.9   $10,701.1   $7,280.7   $3,594.9 
Transportation & International Finance  3,006.2    2,606.8    2,126.8    1,966.7    1,721.9    1,370.6    1,036.1    835.5    619.6    2,606.8    1,370.6    348.9 
Non-Strategic Portfolios  75.8    78.1    77.5    77.2    71.7    68.5    589.2    559.0    1,636.1    78.1      68.5      2,193.0 
Total $14,187.6   $13,386.0   $12,030.0   $11,172.7   $10,380.2   $8,719.8   $7,829.1   $6,866.6   $6,704.6   $13,386.0   $8,719.8   $6,136.8 
Select Data                                                           
Tier 1 Capital to Average Assets (Leverage Ratio)  15.9%   16.9%   17.9%   18.5%   19.4%   20.2%   21.4%   23.3%   23.1%   16.9%   20.2%   24.7%
Tier 1 Capital to Risk Weighted Assets  16.1%   16.8%   18.5%   19.6%   20.0%   21.5%   26.3%   28.8%   32.0%   16.8%   21.5%   36.5%
Total Capital to Risk Weighed Assets  17.4 %   18.1%   19.8%   20.8%   21.3%   22.7%   27.4%   29.8%   32.9%   18.1%    22.7%    37.5%
                                                               
  1Q 14  4Q 13  3Q 13  2Q 13  1Q 13  4Q 12  3Q 12  2Q 12  1Q 12  2013  2012  2011
Income Statement
Interest income $157.8   $149.0   $142.9   $135.8   $122.8   $111.0   $98.9   $87.5   $83.6   $550.5   $381.0   $273.0 
Interest expense  (51.4)   (47.4)   (42.6)   (42.8)   (39.3)   (81.5)   (38.0)   (35.1)   (37.1)   (172.1)    (191.7)    (117.4)
Net Finance Revenue  106.4    101.6    100.3    93.0    83.5    29.5    60.9    52.4    46.5    378.4    189.3    155.6 
Other income  72.8    68.9    61.9    55.3    47.8    54.7    40.0    49.6    27.2    233.9      171.5      70.5 
Provision for credit losses  (24.8)   (25.3)   (29.7)   (17.1)   (21.0)   (48.4)   (12.1)   (20.5)   (12.9)   (93.1)   (93.9)   (46.1)
Other expenses  (103.6)   (87.9)   (90.9)   (87.8)   (74.7)   (49.9)   (56.7)   (47.0)   (32.8)   (341.3)   (186.4)   (66.6)
Income before taxes  50.8    57.3    41.6    43.4    35.6    (14.1)   32.1    34.5    28.0    177.9    80.5    113.4 
Provision for income taxes  (17.8)   (19.9)   (16.5)   (18.4)   (14.6)   (4.6)   (13.1)   (12.1)   (9.6)   (69.4)   (39.4)   (45.8)
Net income $33.0   $37.4   $25.1   $25.0   $21.0   $(18.7)   $19.0   $22.4   $18.4   $108.5   $41.1   $67.6 

 

14
 

CIT Group Inc.
Non-GAAP Disclosures(1)
(dollars in millions)

  3/31/2014   12/31/2013   9/30/2013   6/30/2013   3/31/2013   12/31/2012   9/30/2012   6/30/2012   3/31/2012   12/31/2013   12/31/2012   12/31/2011  
Earning assets(2):                                                                          
Loans $ 18,571.7   $ 18,629.2   $ 18,371.0   $ 18,155.3   $ 18,525.7   $ 17,153.1   $ 16,630.6   $ 16,202.4   $ 15,925.1   $ 18,629.2   $ 17,153.1   $ 15,225.8  
Operating lease equipment, net   14,182.4     13,035.4     12,577.1     12,326.2     12,290.6     12,411.7     12,086.7     11,911.2     11,918.9     13,035.4     12,411.7     12,006.4  
Assets held for sale   1,119.4     1,003.4     1,122.2     1,186.6     646.8     644.8     880.3     875.4       620.3     1,003.4     644.8     680.7  
Credit balances of factoring clients   (1,213.5 )   (1,336.1 )   (1,278.4 )   (1,205.0 )   (1,237.7 )   (1,256.5 )   (1,224.9 )   (1,164.1 )   (1,109.8 )   (1,336.1 )   (1,256.5 )   (1,225.5 )
Earning assets $ 32,660.0   $ 31,331.9   $ 30,791.9   $ 30,463.1   $ 30,225.4   $ 28,953.1   $ 28,372.7   $ 27,824.9   $ 27,354.5   $ 31,331.9   $ 28,953.1   $ 26,687.4  
 
  1Q14 4Q13 3Q13 2Q13 1Q13 4Q12 3Q12 2Q12   1Q12 2013   2012   2011  
Total Net Revenues(3):                                                                          
Interest income $ 302.2   $ 307.2   $ 306.4   $ 319.1   $ 322.5   $ 321.8   $ 331.3   $ 363.2     $ 377.7   $ 1,255.2   $ 1,394.0   $ 1,971.9  
Rental income on operating leases   491.9     463.8     472.9     484.3     476.4     480.3     475.1     475.5       469.9     1,897.4     1,900.8     1,785.6  
Finance revenue   794.1     771.0     779.3     803.4     798.9     802.1     806.4     838.7       847.6     3,152.6     3,294.8     3,757.5  
Interest expense   (271.9 )   (267.5 )   (256.7 )   (262.6 )   (274.1 )   (269.8 )   (772.9 )   (607.8 )   (1,015.2 )   (1,060.9 )   (2,665.7 )   (2,504.2 )
Depreciation on operating lease equipment   (148.8 )   (139.5 )   (134.2 )   (133.6 )   (133.3 )   (127.5 )   (126.5 )   (125.3 )   (133.9 )   (540.6 )   (513.2 )   (538.6 )
Maintenance & other operating lease expenses   (51.6 )   (39.0 )   (41.4 )   (40.3 )   (42.4 )   (31.9 )   (38.1 )   (35.6 )     (33.8 )   (163.1 )   (139.4 )   (157.8 )
Net finance revenue (NFR)   321.8     325.0     347.0     366.9     349.1     372.9     (131.1 )   70.0     (335.3 )   1,388.0     (23.5 )   556.9  
Other income   71.1     127.6     104.5     79.2     70.0     152.4     85.6     123.1       253.6     381.3     614.7     954.2  
Total net revenue $ 392.9   $ 452.6   $ 451.5   $ 446.1   $ 419.1   $ 525.3   $ (45.5 ) $ 193.1     $ (81.7 ) $ 1,769.3   $ 591.2   $ 1,511.1  
 
Pre-tax Income excluding Accelerated Debt FSA, OID and Debt Related Transaction Costs                                                                          
Income / (Loss) from continuing operations before provision for income taxes $ 122.7   $ 153.8   $ 206.3   $ 205.4   $ 168.7   $ 298.5   $ (291.4 ) $ (58.1 ) $ (364.4 ) $ 734.2   $ (415.4 ) $ 245.9  
Accelerated FSA net discount/(premium) on debt extinguishments and repurchases   -     9.8     -     7.7     17.1     13.7     441.7     258.4       581.1     34.6     1,294.9     279.2  
Accelerated original issue discount on debt extinguishments related to the TRS facility   -     (5.2 )   -     -     -     (6.9 )   -     -       -     (5.2 )   (6.9 )   -  
Debt Related - prepayment penalties   -     -     -     -     -     -     -     -       -     -     -     114.2  
Debt Related - loss on debt extinguishments   -     -     -     -     -     -     16.8     21.5       22.9     -     61.2     134.8  
Income / (Loss) from continuing operations before provision for income taxes - excluding debt refinancing costs $ 122.7   $ 158.4   $ 206.3   $ 213.1   $ 185.8   $ 305.3   $ 167.1   $ 221.8     $ 239.6   $ 763.6   $ 933.8   $ 774.1  
 
Income / (Loss) from continuing operations before provision for income taxes - excluding debt refinancing costs                                                                          
Transportation & International Finance $ 117.6   $ 116.8   $ 150.6   $ 162.4   $ 148.5   $ 169.4   $ 106.6   $ 113.8     $ 75.7     578.3     465.5     247.9  
North American Commercial Finance   42.5     135.0     83.6     89.7     64.8     166.1     134.4     158.5       244.3     373.1     703.3     620.5  
Non-Strategic Portfolios   (8.0 )   (11.8 )   (10.5 )   (20.2 )   (14.8 )   12.2     (35.9 )   (11.0 )     (50.8 )   (57.3 )   (85.5 )   118.4  
Corporate and Other   (29.4 )   (81.6 )   (17.4 )   (18.8 )   (12.7 )   (42.4 )   (38.0 )   (39.5 )     (29.6 )   (130.5 )   (149.5 )   (212.7 )
Total $ 122.7   $ 158.4   $ 206.3   $ 213.1   $ 185.8   $ 305.3   $ 167.1   $ 221.8     $ 239.6   $ 763.6   $ 933.8   $ 774.1  
 
NFR excluding Accelerated Debt FSA, OID and Debt Prepayment Costs ($ and % of AEA) (4)                                                                          
Net finance revenue $ 321.8   $ 325.0   $ 347.0   $ 366.9   $ 349.1   $ 372.9   $ (131.1 ) $ 70.0   $ (335.3 ) $ 1,388.0   $ (23.5 ) $ 556.9  
Accelerated FSA net discount/(premium) on debt extinguishments and repurchases   -     9.8     -     7.7     17.1     13.7     441.7     258.4       581.1     34.6     1,294.9     279.2  
Accelerated original issue discount on debt extinguishments related to the TRS facility   -     (5.2 )   -     -     -     (6.9 )   -     -       -     (5.2 )   (6.9 )   -  
Debt related - prepayment costs   -     -     -     -     -     -     -     -       -     -     -     114.2  
Adjusted net finance revenue $ 321.8   $ 329.6   $ 347.0   $ 374.6   $ 366.2   $ 379.7   $ 310.6   $ 328.4     $ 245.8   $ 1,417.4   $ 1,264.5   $ 950.3  
 
Net finance revenue - reported   4.01 %   4.23 %   4.56 %   4.87 %   4.75 %   5.26 %   -1.88 %   1.02 %   -4.99 %   4.61 %   -0.09 %   2.09 %
Accelerated FSA net discount/(premium) on debt extinguishments and repurchases   -     0.13 %   -     0.10 %   0.23 %   0.19 %   6.33 %   3.78 %     8.64 %   0.12 %   4.69 %   1.04 %
Accelerated original issue discount on debt extinguishments related to the TRS facility   -     -0.07 %   -     -     -     -0.09 %   -     -       -     -0.02 %   -0.02 %   -  
Debt related - prepayment costs   -     -     -     -     -     -     -     -       -     -     -     0.43 %
Adjusted net finance revenue   4.01 %   4.29 %   4.56 %   4.97 %   4.98 %   5.36 %   4.45 %   4.80 %     3.65 %   4.71 %   4.58 %   3.56 %
 
Tangible book value                                                                          
Total common stockholders' equity $ 8,796.0   $ 8,838.8   $ 8,845.0   $ 8,677.2   $ 8,494.4   $ 8,334.8   $ 8,108.9   $ 8,393.8   $ 8,467.6   $ 8,838.8   $ 8,334.8   $ 8,883.6  
Goodwill and intangible assets, net   421.7     354.9     360.7     369.3     373.6     377.8     383.2     388.2       395.9   $ 354.9   $ 377.8     409.5  
Tangible book value $ 8,374.3   $ 8,483.9   $ 8,484.3   $ 8,307.9   $ 8,120.8   $ 7,957.0   $ 7,725.7   $ 8,005.6   $ 8,071.7   $ 8,483.9   $ 7,957.0   $ 8,474.1  

 

(1)Non-GAAP financial measures disclosed by management are meant to provide additional information and insight relative to trends in the business to investors and, in certain cases, to present financial information as measured by rating agencies and other users of financial information. These measures are not in accordance with, or a substitute for, GAAP and maybe different from, or inconsistent with, non-GAAP financial measures used by other companies.
(2)Earning assets are utilized in certain revenue and earnings ratios. Earning assets are net of credit balances of factoring clients. This net amount, which corresponds to amounts funded, is a basis for revenues earned.
(3)Total net revenues are the combination of net finance revenues and other income.
(4)NFR excluding debt FSA, OID and debt prepayment costs is used in the analysis of operating margin.
15
 

CIT Group Inc.
APPENDIX - Fresh Start Accounting
(dollars in millions)

    12/31/2013     9/30/2013     6/30/2013     3/31/2013     12/31/2012     9/30/2012     6/30/2012     3/31/2012   12/31/2013   12/31/2012   12/31/2011  
Accretable Discount (by balance sheet line item)                                                                
Loans $ (35.0 ) $ (44.5 ) $ (58.2 ) $ (112.6 ) $ (131.1 ) $ (166.1 ) $ (201.0 ) $ (253.9 ) $ (35.0 ) $ (131.1 ) $ (318.5 )
Operating Lease Equipment, Net   (2,276.9 )   (2,350.2 )   (2,398.3 )   (2,475.3 )   (2,550.6 )   (2,610.6 )   (2,670.9 )   (2,743.3 )   (2,276.9 ) (2,550.6 )   (2,803.1 )
Intangible Assets   20.3     22.4     24.8     27.7     31.9     37.3     42.3     50.0     20.3   31.9     63.6  
Other Assets   (11.6 )   (14.7 )   (15.7 )   (17.7 )   (20.8 )   (64.5 )   (67.7 )   (106.8 )   (11.6 ) (20.8 )   (117.1 )
Total Assets   (2,303.2 )   (2,387.0 )   (2,447.4 )   (2,577.9 )   (2,670.6 )   (2,803.9 )   (2,897.3 )   (3,054.0 )   (2,303.2 ) (2,670.6 )   (3,175.1 )
Deposits   (0.8 )   (0.1 )   0.7     1.9     3.5     5.2     7.1     10.1     (0.8 ) 3.5     14.5  
Long-term Borrowings   (52.9 )   (68.1 )   (73.0 )   (90.4 )   (124.0 )   (149.6 )   (635.8 )   (949.1 )   (52.9 ) (124.0 )   (1,621.4 )
Other Liabilities   -     0.3     0.4     1.3     1.7     4.4     6.5     12.7     -   1.7     25.7  
Total Liabilities   (53.7 )   (67.9 )   (71.9 )   (87.2 )   (118.8 )   (140.0 )   (622.2 )   (926.3 )   (53.7 ) (118.8 )   (1,581.2 )
Net Accretable Discount $ (2,249.5 ) $ (2,319.1 ) $ (2,375.5 ) $ (2,490.7 ) $ (2,551.8 ) $ (2,663.9 ) $ (2,275.1 ) $ (2,127.7 ) $ (2,249.5 ) $ (2,551.8 ) $ (1,593.9 )
 
                                                                 
                            4Q 12   3Q 12   2Q 12   1Q 12       2012     2011  
Income Statement Accretion / (Amortization):                                                                
Interest Income                         $ 30.3   $ 43.4   $ 60.4   $ 78.2      $ 212.3   $ 666.4  
Interest Expense                           (23.7 )   (471.8 )   (303.2 )   (652.4 )       (1,451.1 )   (752.3 )
Rental Income on Operating Leases                           (5.4 )   (4.9 )   (6.4 )   (8.1 )       (24.8 )   (56.1 )
Depreciation Expense (1)                           52.7     49.8     54.0     57.5         214.0     240.0  
Other Income (2)                           40.3     3.0     36.0     9.4         88.7     101.4  
Total Impact (pre-tax)                         $ 94.2   $ (380.5 ) $ (159.2 ) $ (515.4 )    $ (960.9 ) $ 199.4  

 

(1) Represents additional depreciation expense that would have been recognized had the equipment values not been written down as part of FSA.

(2) Other Income impact excludes recoveries on amounts charged off pre-FSA which are recorded in and shown as a separate component of other income. The amounts represent the accretion of a fair value mark on a counterparty receivable related to a secured borrowing facility.

16
 

APPENDIX - Select Financial Terms

Accretable / Non-accretable fresh start accounting adjustments reflect components of the fair value adjustments to assets and liabilities. Accretable adjustments flow through the related line items on the statement of operations (interest income, interest expense, non-interest income and depreciation expense) on a regular basis over the remaining life of the asset or liability. These primarily relate to interest adjustments on loans and leases, as well as debt. Non-accretable adjustments, for instance credit related write-downs on loans, become adjustments to the basis of the asset and flow back through the statement of operations only upon the occurrence of certain events, such as repayment or sale.

Average Earning Assets (AEA) is computed using month end balances and is the average of finance receivables (defined below), operating lease equipment, and financing and leasing assets held for sale, less the credit balances of factoring clients. We use this average for certain key profitability ratios, including Gross Yield, Net Yield, Net Finance Margin and return on AEA.

Average Finance Receivables (AFR) is computed using month end balances and is the average of finance receivables (defined below). It excludes operating lease equipment. We use this average to measure the rate of net charge-offs for the period.

Book value per common share and tangible book value per common share are measurements of shareholder value.

Discontinued Operation reflects the student lending business, which had been included in the Non-Strategic Portfolios segment.

Efficiency Ratio is the percentage of operating expenses to Total Net Revenue (defined below). We use the efficiency ratio to measure the level of expenses in relation to revenue earned.

Finance receivables include loans, capital lease receivables and factoring receivables. In certain instances, we use the term “Loans” synonymously, as presented on the balance sheet.

Financing and Leasing Assets include finance receivables, operating lease equipment and assets held for sale.

Fresh Start Accounting (“FSA”) was adopted upon emergence from bankruptcy. FSA recognizes that CIT has a new enterprise value following its emergence from bankruptcy and required asset values to be remeasured using fair value in accordance with accounting requirements for business combinations. The excess of reorganization value over the fair value of tangible and intangible assets was recorded as goodwill. In addition, FSA also required all liabilities, other than deferred taxes, be stated at fair value. Deferred taxes were determined in conformity with accounting requirements for Income Taxes.

Gross Yield includes rental income and interest income as a % of AEA.

Held for Sale describes assets that we intend to sell in the near-term. These are carried at the lower of cost or market.

Interest income includes interest and fees earned on finance receivables and interest and dividends on interest bearing deposits and investments.

Lease – operating is a lease in which we retain ownership of the asset, collect rental payments, recognize depreciation on the asset, and retain the risks of ownership, including obsolescence.

Net Finance Margin (NFM) reflects Net Finance Revenue divided by AEA.

Net Finance Margin (adjusted) (Adjusted NFM) is NFM increased by accelerated FSA net discount/(premium) on debt extinguishments and repurchases and debt related prepayment costs, reduced by accelerated OID accretion.

Net Finance Revenue reflects Net Interest Revenue (defined below) plus rental income on operating leases less depreciation on operating lease equipment and maintenance & operating lease expenses, which are direct costs of equipment ownership.

Net Interest Revenue reflects interest and fees on finance receivables and interest/dividends on investments less interest expense on deposits and long term borrowings.

Net Yield includes rental income and interest income, reduced by depreciation and maintenance and other operating lease expenses as a % of AEA.

Non-accruing Assets include loans placed on non-accrual status, typically after becoming 90 days delinquent or prior to that time due to doubt of collectability of principal and interest.

Other Income includes gains on equipment sales, factoring commissions, and fee revenue from activities such as loan servicing and loan syndications. Also included are gains on loan sales and investment sales and, as a result of FSA, recoveries on pre-FSA loan charge-offs. Other income combined with rental income on operating leases is defined as Non-interest income.

Return on Common Equity (ROE) is net income available to common stockholders, expressed as a percentage of average common equity, and is a key measurement of profitability.

Risk Weighted Assets (RWA) is the denominator to which Total Capital and Tier 1 Capital is compared to derive the respective ratios. RWA is comprised of both on-balance sheet assets and certain off-balance sheet items (for example loan commitments, purchase commitments or derivative contracts), all of which are adjusted by certain risk-weightings as defined by the regulators, which are based upon, among other things, the relative credit risk of the counterparty.

Tier 1 Capital and Tier 2 Capital are regulatory capital as defined in the capital adequacy guidelines issued by the Federal Reserve. Tier 1 Capital is Total Stockholders Equity reduced by goodwill and intangibles and adjusted by elements of other comprehensive income and other items. Tier 2 Capital consists of, among other things, other preferred stock that does not qualify as Tier 1, mandatory convertible debt, limited amounts of subordinated debt, other qualifying term debt, and allowance for credit losses up to 1.25% of risk weighted assets.

Total Capital is the sum of Tier 1 and Tier 2 capital, subject to certain adjustments, as applicable.

Total Net Revenue is the combination of net finance revenue and non-interest income. This amount excludes provision for credit losses from total revenue and is a measurement of our revenue growth.

Yield-related Fees are collected in connection with our assumption of underwriting risk in certain transactions in addition to interest income. We recognize yield-related fees, which include prepayment fees and certain origination fees, in Interest Income over the life of the lending transaction.

 

17

Stock widget

Investing forum

CIT GROUP INC Reports