0000891092-14-003262.txt : 20140423 0000891092-14-003262.hdr.sgml : 20140423 20140422185103 ACCESSION NUMBER: 0000891092-14-003262 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20140422 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20140423 DATE AS OF CHANGE: 20140422 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CIT GROUP INC CENTRAL INDEX KEY: 0001171825 STANDARD INDUSTRIAL CLASSIFICATION: FINANCE LESSORS [6172] IRS NUMBER: 651051192 STATE OF INCORPORATION: DE FISCAL YEAR END: 0812 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-31369 FILM NUMBER: 14777185 BUSINESS ADDRESS: STREET 1: 1 CIT DRIVE CITY: LIVINGSTON STATE: NJ ZIP: 07039 BUSINESS PHONE: 9737405000 MAIL ADDRESS: STREET 1: 1 CIT DRIVE CITY: LIVINGSTON STATE: NJ ZIP: 07039 FORMER COMPANY: FORMER CONFORMED NAME: CIT GROUP INC DEL DATE OF NAME CHANGE: 20020422 8-K 1 e58559-8k.htm CURRENT REPORT

UNITED STATES


SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 8-K



CURRENT REPORT


Pursuant to Section 13 or 15(d) of the



Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):April 22, 2014 (April 22, 2014)

CIT GROUP INC.

(Exact name of registrant as specified in its charter)

 

Delaware 001-31369 65-1051192
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)    

11 West 42nd Street

New York, New York 10036

(Address of registrant's principal executive office)

Registrant's telephone number, including area code: (212) 461-5200

 

 

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[  ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[  ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[  ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[  ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 
 

Section 8 – Other Events

Item 8.01. Other Events.

In connection with a realignment of the organizational structure of CIT Group Inc. (the “Company” or “CIT”) into three operating segments that was effective January 1, 2014, the Company is filing this Current Report on Form 8-K and attaching as an exhibit the financial data package of the Company as of and for the years ended December 31, 2013, 2012, and 2011 and as of and for the quarters ended March 31, June 30, September 30, and December 31 in each of 2013 and 2012, which have been recast in accordance with the new segments. The Company previously announced the changes to the organizational structure in a Form 8-K filed December 3, 2013. The financial data package, as recast, is attached as Exhibit 99.1. Exhibit 99.1 includes certain non-GAAP financial measures. A reconciliation of those measures to the most directly comparable GAAP measures is included as a table to Exhibit 99.1. The information furnished under this Item 8.01, including Exhibit 99.1, shall be considered filed for purposes of the Securities Exchange Act of 1934, as amended.

Management has (i) realigned and simplified its businesses and organizational structure, (ii) streamlined and consolidated certain business processes to achieve greater operating efficiencies, and (iii) leveraged CIT’s operational capabilities for the benefit of its clients and customers. Effective January 1, 2014, the Company is managing its business and will report its financial results in three operating segments (the “New Segments”):

  1. Transportation & International Finance;
  2. North American Commercial Finance; and
  3. Non-Strategic Portfolios.

The Company’s 4th quarter 2013 and full year 2013 financial results were previously reported based on CIT’s previous five operating segments:

  1. Corporate Finance;
  2. Transportation Finance;
  3. Trade Finance;
  4. Vendor Finance; and
  5. Consumer.

The Company’s New Segments were established based on how CIT’s business units are being managed prospectively and how products and services are provided to clients and customers by each business unit.

    “Transportation & International Finance” includes CIT’s commercial aircraft, business aircraft, rail, and maritime finance business units. Each of these businesses was previously included in CIT’s Transportation Finance segment. The Transportation & International Finance segment also includes corporate lending businesses outside of North America (previously part of the Corporate Finance segment) and equipment finance businesses in the U.K. and China (previously part of the Vendor Finance segment). CIT’s transportation lending business, which offers cash flow and asset-based loan products to commercial businesses in the transportation sector, was previously part of the Transportation Segment and now is included in the North American Commercial Finance segment.
    “North American Commercial Finance” consists of CIT’s former Trade Finance segment, U.S. and Canadian business units previously in the Company’s Corporate Finance and Vendor Finance segments, and the aforementioned transportation lending business, which was previously reflected in the Transportation Finance segment.
    “Non-Strategic Portfolios” consists of CIT’s run-off government-guaranteed student loan portfolio, small
 
 

 

    business lending portfolio, and other portfolios that the Company identified as subscale platforms during our international rationalization process, located in more than 20 countries throughout Europe, Asia, and Latin America.
    Certain activities that are not attributed to operating segments, which may include mark-to-market adjustments on non-qualifying derivatives and restructuring charges, will continue to be reported as “Corporate and Other.”

These planned changes became effective as of January 1, 2014, and, beginning with CIT’s reporting of results for the first quarter of 2014, all segment financial information will be reflected on this basis, including the presentation of historical financial results. The change in segment reporting will have no effect on CIT’s historical consolidated results of operations.

 

Section 9 – Financial Statements and Exhibits

Item 9.01.   Financial Statements and Exhibits.

 

(d) Exhibits.

  99.1 Financial data package of CIT Group Inc. as of and for the years ended December 31, 2013, 2012, and 2011, and as of and for the quarters ended March 31, June 30, September 30, and December 31 in each of 2013 and 2012, which have been recast in accordance with the new segment structure adopted by the Company effective January 1, 2014.

 

Forward-Looking Statements

     This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking statements (including statements regarding future financial and operating results) involve risks, uncertainties and contingencies, many of which are beyond CIT's control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. All statements contained in this document that are not clearly historical in nature are forward-looking, and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. Economic, business, funding market, competitive and/or regulatory factors, among others, affecting CIT's businesses are examples of factors that could cause actual results to differ materially from those described in the forward-looking statements. More detailed information about these factors are described in CIT's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2013. CIT is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

 

 
 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  CIT GROUP INC.
  (Registrant)
     
  By: /s/ Scott T. Parker
     
    Scott T. Parker
    Executive Vice President & Chief Financial Officer

Dated: April 22, 2014

 

 

 

 

 EX-99.1 2 e58559ex99-1.htm FINANCIAL STATEMENTS

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.

 

As of April 22, 2014

 

 
 

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

-Transportation and International Finance
-North American Commercial Finance
-Non-Strategic Portfolios

 

These new segments will consist of the following divisions:

 

Transportation and 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

-Student Lending (formerly in Consumer Finance)
-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 4
   
Average Balance Sheet 5
     
Average Balance Sheet - Full Year 6
     
Income Statement - Consolidated 7
   
Income Statement - Segment 8
   
Income Statement - Division 9
     
Financing and Leasing Assets  10
   
Financing and Leasing Assets - Division 11
     
Credit Metrics 12
   
Select Data and Ratios 13
   
CIT Bank 14
   
Non-GAAP Disclosures 15
   
Fresh Start Accounting 16
   
Financial Terms 17

3

 

CIT Group Inc. 
Balance Sheet Data        
(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
Assets                             
  Cash and interest bearing deposits $ 6,139.2 $ 5,974.3 $ 5,718.2 $ 5,540.8 $ 6,821.3 $ 6,455.5 $ 6,094.3 $ 6,337.2   $ 6,139.2 $ 6,821.3 $ 7,436.8
  Investment securities   2,630.7 2,498.9 1,558.0 1,724.1 1,065.5 1,016.2 1,194.1 1,343.0   2,630.7 1,065.5 1,257.8
  Assets held for sale   4,377.9 1,122.2 1,186.6 646.8 646.4 1,421.1 1,434.0 1,701.9   4,377.9 646.4 2,332.3
  Loans   18,629.2 21,822.7 21,678.3 22,120.4 20,847.6 20,383.4 20,097.9 20,511.5   18,629.2 20,847.6 19,905.9
  Allowance for loan losses   (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   18,273.1 21,466.6 21,311.1 21,734.4 20,468.3 19,985.5 19,683.7 20,091.5   18,273.1 20,468.3 19,498.1
  Operating lease equipment, net   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   584.1 626.2 642.6 630.8 649.1 584.4 629.8 697.4   584.1 649.1 729.5
  Goodwill 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)   1,764.0 1,620.4 1,543.8 1,650.0 1,603.8 1,704.8 1,513.2 1,745.8   1,764.0 1,603.8 1,656.6
  Total Assets   $ 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   $ 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   1,336.1 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)   2,676.4 2,895.6 2,567.5 2,544.7 2,769.7 2,626.6 2,527.1 2,665.8   2,676.4 2,769.7 2,650.4
  Long-term borrowings (3)    21,750.0 21,390.2 21,001.7 21,577.0 21,961.8 22,925.5 23,553.5 25,120.6   21,750.0 21,961.8 26,307.7
  Total Liabilities   $ 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
Stockholders' Equity                            
  Common stock   $ 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   8,555.4 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   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)   (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   (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   8,838.8 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   11.2 8.7 8.3 7.7 4.7 4.9 4.1 3.1   11.2 4.7 2.5
  Total Equity   $ 8,850.0 $ 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   $ 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   $ 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   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   158.5 153.0 156.4 164.4 172.2 169.9 146.4 138.1   158.5 172.2 124.2
  Tax receivable, other than income taxes   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   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   96.8 94.1 95.3 96.1 93.9 106.4 102.1 130.8   96.8 93.9 143.8
  Prepaid expenses   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   85.3 84.9 79.5 77.7 75.4 79.0 77.0 78.1   85.3 75.4 79.5
  Other   248.4 264.6 324.6 305.1 266.1 335.0 396.4 489.5   248.4 266.1 499.3
  Total Other Assets   $ 1,764.0 $ 1,620.4 $ 1,543.8 $ 1,650.0 $ 1,603.8 $ 1,704.8 $ 1,513.2 $ 1,745.8   $ 1,764.0 $ 1,603.8 $ 1,656.6
                           
(2)   Other Liabilities                          
  Valuation adjustment relating to aerospace commitments   $ 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   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 490.1 513.6 467.7 475.1 570.2 538.7 586.3 677.2   490.1 570.2 653.5
  Accrued interest payable   247.1 199.6 225.8 199.3 236.9 209.1 223.4 156.9   247.1 236.9 189.9
  Security and other deposits   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   179.8 158.8 134.1 157.4 185.5 125.2 121.1 87.4   179.8 185.5 38.7
  Other liabilities   490.3 782.4 455.0 435.6 507.4 515.4 420.7 573.9   490.3 507.4 625.1
  Total Other Liabilities   $ 2,676.4 $ 2,895.6 $ 2,567.5 $ 2,544.7 $ 2,769.7 $ 2,626.6 $ 2,527.1 $ 2,665.8   $ 2,676.4 $ 2,769.7 $ 2,650.4
                           
(3)   Long-term Borrowings                          
  Secured borrowings   $ 9,218.4 $ 8,858.7 $ 9,212.2 $ 9,775.3 $ 10,137.8 $ 10,590.6 $ 10,123.0 $ 10,289.1   $ 9,218.4 $ 10,137.8 $ 26,307.7
  Credit facility   - - - - - 500.0 500.0 -   - - -
  Senior unsecured   12,531.6 12,531.5 11,789.5 11,801.7 11,824.0 11,834.9 12,930.5 14,831.5   12,531.6 11,824.0 -
  Total Long-term Borrowings   $ 21,750.0 $ 21,390.2 $ 21,001.7 $ 21,577.0 $21,961.8 $22,925.5 $23,553.5 $25,120.6   $21,750.0 $21,961.8 $26,307.7

 

4

 

CIT Group Inc.

Average Balance Sheet, Net Interest Income and Yields / Rates

(dollars in millions)

 

      4Q 13   3Q 13    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   $ 5,660.4   $  4.8   0.34%   $  5,291.9   $  4.0   0.30%   $ 5,394.0   $  4.3   0.32%   $  5,866.9   $  3.5   0.24%
  Investments    2,338.8    3.8   0.65%    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.    18,738.9    242.0   5.56%    18,429.8    241.4   5.63%    18,106.2    248.1   5.88%    17,435.4    254.5   6.27%
  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    22,720.9    330.1   6.18%    22,619.1    331.4   6.21%    22,294.8    345.2   6.55%    21,617.9    350.3   6.86%
  Total interest earning assets / interest income    30,720.1    338.7   4.61%    29,952.3    338.2   4.72%    29,347.1    352.3   5.01%    29,021.0    356.7   5.13%
  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   43,639.0   624.0   5.90%   42,605.3   635.5   6.15%   42,061.6   662.7   6.49%   41,755.6   657.4   6.48%
  Non-interest earning assets                                                
  Cash and due from banks   730.5           672.8           434.0           315.5        
  Allowance for loan losses   (355.2)           (363.4)           (376.0)           (378.1)        
  All other non-interest bearing assets   2,611.8           2,567.2           2,565.1           2,597.8        
  Total Average Assets   $ 46,626.1           $ 45,481.9           $ 44,684.7           $ 44,290.8        
                                                   
  Borrowings                                                
  Deposits    $ 12,148.5   $ 48.5   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    21,558.2    238.2   4.42%    21,214.0    233.8   4.41%    21,320.7    236.6   4.44%    21,794.9    249.6   4.58%
  Total interest-bearing liabilities    33,706.7    286.7   3.40%    32,715.4    278.0   3.40%    32,330.3    281.4   3.48%    31,994.6    291.9   3.65%
  Credit balances of factoring clients    1,346.5            1,264.8            1,222.2            1,187.3        
  Other non-interest bearing liabilities    2,706.7            2,712.0            2,517.5            2,679.8        
  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           2.50%           2.75%           3.01%           2.83%
  Impact of non-interest bearing sources           0.69%           0.71%           0.72%           0.77%
  Net revenue / yield on earning assets       $ 337.3   3.19%       $ 357.5   3.46%       $ 381.3   3.73%       $ 365.5   3.60%
                                                   
      4Q 12   3Q 12   2Q 12   1Q 12
      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   $ 6,347.5   $ 6.0   0.38%   $ 6,963.6   $ 5.8   0.33%   $ 6,483.8   $ 5.1   0.31%   $ 5,957.0   $ 4.8   0.32%
  Investments    1,063.0    2.5   0.94%    1,115.3    2.2   0.79%    1,287.4    2.9   0.90%    1,715.4    2.9   0.68%
  Loans (including held for sale)                                                
  U.S.    16,989.9    250.4   6.37%    17,067.8    260.8   6.57%    16,998.0    298.9   7.55%    17,826.2    321.7   7.71%
  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    21,098.6    349.3   7.04%    21,033.7    368.3   7.43%    21,022.7    403.1   8.12%    21,843.4    419.4   8.10%
  Total interest earning assets / interest income    28,509.1    357.8   5.25%    29,112.6    376.3   5.39%    28,793.9    411.1   5.95%    29,515.8    427.1   6.02%
  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   41,128.5   678.7   6.81%   41,667.3   686.8   6.79%   41,150.1   725.7   7.26%   41,736.1   729.3   7.19%
  Non-interest earning assets                                                
  Cash and due from banks   332.3           385.5           415.4           741.1        
  Allowance for loan losses   (392.4)           (406.6)           (415.1)           (410.6)        
  All other non-interest bearing assets   2,574.0           2,559.5           2,684.0           2,847.8        
  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    22,193.1    324.1   5.84%    24,017.8    777.6   12.95%    24,715.2    598.9   9.69%    25,739.2    1,044.3   16.23%
  Total interest-bearing liabilities    31,463.2    366.6   4.66%    31,995.3    816.0   10.20%    31,637.8    634.2   8.02%    32,291.7    1,080.6   13.39%
  Credit balances of factoring clients    1,261.9            1,190.7            1,160.4            1,143.4        
  Other non-interest bearing liabilities    2,678.6            2,652.7            2,591.3            2,694.9        
  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           2.15%           -3.41%           -0.76%           -6.20%
  Impact of non-interest bearing sources           0.98%           2.13%           1.68%           2.74%
  Net revenue / yield on earning assets       $ 312.1   3.13%       $ (129.2)   -1.28%       $ 91.5   0.92%       $ (351.3)   -3.46%

 

5

 

CIT Group Inc.
Average Balance Sheet, Net Interest Income and Yields / Rates
(dollars in millions) 
                                       
      2013   2012   2011
      Average
Balance		   Revenue /
Expense		   Average
Rate (%)		   Average
Balance		   Revenue /
Expense		   Average
Rate (%)		   Average
Balance		   Revenue /
Expense		   Average
Rate (%)
  Interest bearing deposits   $  5,644.4   $  16.6   0.29%   $  6,551.7   $  21.8   0.33%   $  6,626.1   $  24.2   0.37%
  Investments    1,886.0    12.3   0.65%    1,320.9    10.5   0.79%    1,962.3    10.6   0.54%
  Loans (including held for sale)                                    
  U.S.    18,145.2    986.0   5.84%    17,190.7    1,131.7   7.07%    19,452.5    1,608.3   8.76%
  Non-U.S.    4,123.6    371.0   9.00%    4,029.1    408.3   10.13%    4,566.2    588.8   12.89%
  Total Loans    22,268.8    1,357.0   6.46%    21,219.8    1,540.0   7.69%    24,018.7    2,197.1   9.59%
  Total interest earning assets / interest income    29,799.2    1,385.9   4.86%    29,092.4    1,572.3   5.64%    32,607.1    2,231.9   7.08%
  Operating lease equipment, net (including held for sale)                                    
  U.S.    6,559.0    613.1   9.35%    6,139.0    596.9   9.72%    5,186.7    428.1   8.25%
  Non-U.S.    6,197.1    580.6   9.37%    6,299.0    651.3   10.34%    6,220.0    661.1   10.63%
  Total operating lease equipment, net    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   42,555.3   2,579.6   6.25%   41,530.4   2,820.5   6.99%   44,013.8   3,321.1   7.74%
  Non-interest earning assets                                    
  Cash and due from banks   527.2           495.9           1,344.8        
  Allowance for loan losses   (367.8 )         (405.1 )         (412.0 )      
  All other non-interest bearing assets   2,586.5           2,671.1           3,094.0        
  Total Average Assets   45,301.2           44,292.3           48,040.6        
                                       
  Borrowings                                    
  Deposits    $  11,212.1   $  179.8   1.60%   $  7,707.9   $  152.5   1.98%   $  4,796.6   $  111.2   2.32%
  Long-term borrowings    21,506.4    958.2   4.46%    24,235.5    2,744.9   11.33%    30,351.5    2,683.2   8.84%
  Total interest-bearing liabilities    32,718.5    1,138.0   3.48%    31,943.4    2,897.4   9.07%    35,148.1    2,794.4   7.95%
  Credit balances of factoring clients    1,258.6            1,194.4            1,098.1        
  Other non-interest bearing liabilities    2,650.5            2,665.5            2,834.1        
  Noncontrolling interests    9.2            5.0            1.1        
  Stockholders' equity    8,664.4            8,484.0            8,959.2        
  Total Average Liabilities and Stockholders' Equity   $  45,301.2           $  44,292.3           $  48,040.6        
                                       
  Net revenue spread           2.77%           -2.08%           -0.21%
  Impact of non-interest bearing sources           0.72%           1.89%           1.44%
  Net revenue / yield on earning assets       $  1,441.6   3.51%       $  (76.9 ) -0.19%       $  526.7   1.23%

 

6

 

CIT Group Inc.  
Income Statement   
(dollars in millions, except per share data)  
    4Q13 3Q13 2Q13 1Q13 4Q12 3Q12 2Q 12 1Q 12   2013 2012 2011  
Interest income   $  338.7  $  338.2  $  352.3  $  356.7  $  357.8  $ 376.3  $  411.1  $    427.1    $  1,385.9  $ 1,572.3  $  2,231.9 
Rental income on operating leases    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    802.5   811.1   836.6   833.1   838.1   851.4   886.6   897.0     3,283.3   3,473.1   4,017.5 
Interest expense   (286.7) (278.0) (281.4) (291.9) (366.6) (816.0) (634.2) 1,080.6)   (1,138.0)  2,897.4) (2,794.4)
Depreciation on operating lease equipment   (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* (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    337.3   357.5   381.3   365.5   312.1  (129.2)  91.5  (351.3)    1,441.6  (76.9)  526.7 
Other income (1)    127.9   104.8   79.3   70.1   171.7   86.7   139.4   255.3     382.1   653.1   952.8 
  Total Net Revenues    465.2   462.3   460.6   435.6   483.8  (42.5)  230.9  (96.0)    1,823.7   576.2   1,479.5 
Provision for credit losses   (14.4) (16.4) (14.6) (19.5) (0.1)  -    (8.9) (42.6)   (64.9) (51.6) (269.7)
  Net revenue, after credit provision    450.8   445.9   446.0   416.1   483.7  (42.5)  222.0 (138.6)    1,758.8   524.6   1,209.8 
Operating expenses (2)   (287.5) (232.2) (229.7) (235.3) (231.9) (235.2) (226.8) (224.3)   (984.7) (918.2) (896.6)
Gain / (Loss) on debt extinguishments    -    -    -    -    -   (16.8) (21.5) (22.9)    -   (61.2) (134.8)
  Income / (Loss) before provision for income taxes    163.3   213.7   216.3   180.8   251.8  (294.5) (26.3) (385.8)    774.1  (454.8)  178.4 
Benefit (Provision) for income taxes   (31.2) (13.9) (32.2) (15.2) (44.2) (3.9) (45.4) (40.3)   (92.5) (133.8) (158.6)
  Net income / (loss) before noncontrolling interests    132.1   199.8   184.1   165.6   207.6  (298.4) (71.7) (426.1)    681.6  (588.6)  19.8 
Net Income attributable to noncontrolling interests, after tax   (2.2) (0.2) (0.5) (3.0) (0.8) (0.8) (1.2) (0.9)   (5.9) (3.7) (5.0)
  Net income / (loss)   $ 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   $ 0.65  $ 0.99  $ 0.91  $ 0.81  $ 1.03  $ (1.49) $ (0.36) $ (2.13)   $ 3.37  $ (2.95) $ 0.07 
  Diluted   $ 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       $ 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       43.7   30.7   33.8   22.3   40.5   34.6   23.1   19.4     130.5   117.6   148.4 
  Fee revenue    28.4   25.3   27.4   20.4   22.7   18.6   22.6   22.2     101.5   86.1   97.5 
  (Losses) gains on loan and portfolio sales      24.3   23.5  (4.5)  5.3   19.8   4.7   24.9   142.9     48.6   192.3   305.9 
  Counterparty receivable accretion      3.2   1.0   2.0   3.1   43.6   3.3   39.0   10.2     9.3   96.1   109.9 
  Recoveries of loans charged off pre-emergence and loans HFS      5.1   6.3   6.3   4.2   17.4   8.6   18.6   10.4     21.9   55.0   124.1 
  Gains (Losses) on investment sales       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      (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     (34.7) (44.6) (22.1) (22.6) (37.4) (27.7) (28.9) (21.6)   (124.0) (115.6) (113.1)
  Other revenue  25.0   28.4   3.8   5.6   21.7   6.0   10.2   22.7     62.8   60.6   107.1 
  Total Other Income       $ 127.9  $  104.8  $ 79.3  $ 70.1  $ 171.7  $ 86.7  $ 139.4  $ 255.3    $ 382.1  $ 653.1  $ 952.8 
                           
(2)   Operating Expenses                          
  Compensation and benefits      $ 130.0  $ 133.2  $ 135.9  $ 137.0  $ 129.9  $ 138.5  $ 136.7  $ 133.6    $ 536.1  $ 538.7  $ 494.8 
  Technology        21.1   22.3   20.1   19.8   25.6   19.4   17.8   18.8     83.3   81.6   75.3 
  Professional fees       19.2   19.5   12.2   18.7   13.4   18.1   13.3   20.0     69.6   64.8   120.9 
  Advertising and marketing  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       8.3   9.0   8.6   9.4   8.1   9.2   9.8   9.1     35.3   36.2   39.4 
  Provision for severance and facilities exiting activities       18.5   3.2   9.5   5.7   11.7   5.0   1.5   4.5     36.9   22.7   13.1 
  Other expenses**        82.9   41.3   37.1   37.0   34.0   34.8   36.5   32.4     198.3   137.7   142.6 
  Total Operating Expenses      $ 287.5  $ 232.2  $ 229.7  $ 235.3  $ 231.9  $ 235.2  $ 226.8  $ 224.3    $ 984.7  $ 918.2  $ 896.6 
                           
*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 Tyco tax settlement.

7

 

CIT Group Inc.
Segment Data 
(dollars in millions) 
    4Q 13  3Q 13  2Q 13  1Q 13  4Q 12  3Q 12  2Q 12  1Q 12    2013  2012  2011 
Transportation and International Finance                        
  Interest income  $    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   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  (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  (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* (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   192.2   187.7   196.1   179.5   214.9  (71.5)  24.9  (165.5)    755.5   2.8   263.7 
  Other income   7.1   31.4   26.9   16.8   11.9   19.3   19.1   15.5     82.2   65.8   118.4 
  Provision for credit losses  (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 (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  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   $ 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   27.2   27.2   25.8   23.8   24.3   22.3   25.7   27.1     104.0   99.4   101.2 
  Interest expense  (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  (20.4) (19.8) (18.6) (16.3) (16.7) (18.0) (18.4) (18.8)   (75.1) (71.9) (98.3)
  Net finance revenue   139.3   140.1   145.6   148.2   143.3   44.4   94.1  (28.7)    573.2   253.1   509.5 
  Other income   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   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 (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  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   $ 65.0   $ 68.8   $ 76.0   $ 78.1   $ 79.7   $ 90.0   $ 93.9   $ 95.0     $ 287.9   $ 358.6   $ 514.2 
  Rental income on operating leases   10.9   30.2   34.7   35.2   34.3   33.4   33.2   34.2     111.0   135.1   170.1 
  Interest expense  (49.9) (51.2) (51.6) (54.6) (127.5) (117.1) (87.2) (162.4)   (207.3) (494.2) (549.0)
  Depreciation on operating lease equipment  (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   19.9   39.5   50.2   49.7  (21.4) (1.1)  32.3  (40.8)    159.3  (31.0)  58.1 
  Other income   12.7  (0.8) (15.8) (9.7)  28.4  (6.1)  12.5  (5.4)   (13.6)  29.4   106.5 
  Provision for credit losses  (2.2) (2.2) (6.1) (0.3) (3.1)  3.3   6.6   0.4    (10.8)  7.2  (20.8)
  Other expenses - including gain / (loss) on debt extinguishment (39.5) (41.9) (40.0) (45.1) (42.5) (51.9) (42.1) (48.6)   (166.5) (185.1) (235.5)
  Income (Loss) before taxes & noncontrolling interests  (9.1) (5.4) (11.7) (5.4) (38.6) (55.8) 9.3  (94.4)   (31.6) (179.5) (91.7)
                           
Corporate and Other                        
  Interest income   $ 4.4   $ 3.7   $ 3.7   $ 2.7   $ 5.0   $ 4.9   $ 4.5   $ 4.6     $ 14.5   $ 19.0   $ 20.7 
  Interest expense  (18.5) (13.5) (14.3) (14.6) (29.7) (105.9) (64.3) (120.9)   (60.9) (320.8) (325.3)
  Net finance revenue  (14.1) (9.8) (10.6) (11.9) (24.7) (101.0) (59.8) (116.3)   (46.4) (301.8) (304.6)
  Other income   1.6   2.7   3.4  (0.7)  1.6   2.9  (4.8)  3.0     7.0   2.7   2.7 
  Provision for credit losses  (0.1)  0.1   -   0.1  (0.3)          0.1  (0.3)  - 
  Other expenses - including gain / (loss) on debt extinguishment (66.8) (8.1) (9.8)  1.3  (16.4) (20.3) (30.2) (10.1)   (83.4) (77.0) (149.4)
  Income (Loss) before taxes & noncontrolling interests  (79.4) (15.1) (17.0) (11.2) (39.8) (118.4) (94.8) (123.4)   (122.7) (376.4) (451.3)
                           
Total                          
  Interest income  $ 338.7  $ 338.2  $ 352.3  $ 356.7  $ 357.8  $ 376.3  $  411.1  $ 427.1    $  1,385.9  $  1,572.3  $ 2,231.9 
  Rental income on operating leases   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  (286.7) (278.0) (281.4) (291.9) (366.6) (816.0) (634.2) (1,080.6)   (1,138.0) (2,897.4) (2,794.4)
  Depreciation on operating lease equipment  (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* (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   337.3   357.5   381.3   365.5   312.1  (129.2)  91.5  (351.3)    1,441.6  (76.9)  526.7 
  Other income   127.9   104.8   79.3   70.1   171.7   86.7  139.4   255.3     382.1   653.1   952.8 
  Provision for credit losses  (14.4) (16.4) (14.6) (19.5) (0.1)  -  (8.9) (42.6)   (64.9) (51.6) (269.7)
  Other expenses - including gain / (loss) on debt extinguishment (287.5) (232.2) (229.7) (235.3) (231.9) (252.0) (248.3) (247.2)   (984.7) (979.4) (1,031.4)
  Income (Loss) before taxes & noncontrolling interests  163.3  213.7  216.3  180.8  251.8  (294.5) (26.3) (385.8)   774.1  (454.8) 178.4 

 

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

8

 
CIT Group Inc.
Division Data  
(dollars in millions)  
    4Q 13  3Q 13  2Q 13  1Q 13  4Q 12  3Q 12  2Q 12  1Q 12      2013  2012  2011  
Transportation and International Finance                        
Average Earning Assets (AEA)                        
  Aerospace       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       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          376.4           350.0           305.7           208.3  -   -   -   -                300.1  -   -  
  International Finance       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 12.14% 12.25% 12.40% 12.18% 12.29% 12.51% 12.67% 12.65%   12.23% 12.53% 13.28%
  Rail 14.67% 14.77% 14.75% 14.58% 14.91% 14.74% 14.90% 14.87%   14.69% 14.87% 13.98%
  Maritime Finance 9.53% 5.97% 7.12% 7.44% -   -   -   -     7.83% -   -  
  International Finance 8.81% 9.13% 9.77% 9.58% 11.11% 12.08% 11.98% 17.82%   9.30% 13.01% 18.79%
                           
Total                        
  AEA     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 12.44% 12.49% 12.70% 12.57% 12.93% 13.09% 13.23% 13.57%   12.55% 13.21% 13.79%
  Net Finance Margin 4.83% 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) 4.83% 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       1,391.9        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       6,916.2        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       4,212.4        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          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 4.02% 4.22% 4.08% 4.31% 4.38% 3.76% 3.94% 1.98%   4.19% 4.01% 14.06%
  Corporate Finance 5.34% 5.38% 5.94% 6.58% 6.76% 7.10% 9.39% 9.45%   5.80% 8.15% 13.25%
  Equipment Finance 10.25% 10.53% 10.92% 11.51% 12.42% 12.67% 13.39% 14.29%   10.82% 13.20% 16.03%
  Commercial Services 5.39% 5.50% 5.51% 5.47% 5.63% 5.63% 5.14% 4.85%   5.47% 5.30% 5.29%
                           
Total                        
  AEA     13,456.5      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 6.74% 6.90% 7.34% 7.91% 8.38% 8.70% 10.23% 10.61%   7.22% 9.47% 13.34%
  Net Finance Margin 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) 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) 
    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 and International Finance                        
  Loans  $ 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   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   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   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   14,693.1   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   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   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   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  441.7   4,129.0   4,514.6   5,068.2   5,206.7   5,252.1   5,373.1   6,104.8    $ 441.7  $ 5,206.7  $ 6,163.1 
  Operating Lease Equipment, Net   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   4,181.2   1,007.6   895.1   424.2   430.7   958.9   963.4   1,502.5     4,181.2   430.7   2,061.7 
  Financing and Leasing Assets   4,639.3   5,181.8   5,475.5   5,574.6   5,720.2   6,283.3   6,403.4   7,677.8     4,639.3   5,720.2   8,291.1 
                           
Total                           
  Loans  $ 18,629.2  $ 21,822.7  $ 21,678.3  $ 22,120.4  $ 20,847.6  $ 20,383.4  $ 20,097.9  $ 20,511.5    $ 18,629.2  $ 20,847.6  $ 19,905.9 
  Operating Lease Equipment, Net   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   4,377.9   1,122.2   1,186.6   646.8   646.4   1,421.1   1,434.0   1,701.9     4,377.9   646.4   2,332.3 
  Financing and Leasing Assets   36,042.5   35,522.0   35,191.1   35,057.8   33,905.7   33,891.2   33,443.1   34,132.3     36,042.5   33,905.7   34,244.6 
                           
    4Q 13  3Q 13  2Q 13  1Q 13  4Q 12  3Q 12  2Q 12  1Q 12    2013  2012  2011 
Funded New Business Volume (by Segment)                        
  Transportation and International Finance $ 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  1,778.7   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  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 $ 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)
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 and International Finance
Aerospace
Loans $ 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  8,267.9  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  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  9,664.4  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  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  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  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  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  412.6  365.0  302.8  290.7  -  -  -  - $ 412.6 $ - $ -
Operating Lease Equipment, Net  -  -  7.2  7.5  -  -  -  -  -  -  -
Financing and Leasing Assets  412.6  365.0  310.0  298.2  -  -  -  -  412.6  -  -
International Finance
Loans  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  6.7  7.1  7.8  9.4  12.1  15.2  17.7  21.5  6.7  12.1  24.9
Assets Held for Sale  6.4  15.3  -  -  -  -  -  -  6.4  -  -
Financing and Leasing Assets  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  1,554.8  1,330.5  1,235.1  992.2  616.1  361.1  268.9  151.8 $ 1,554.8 $ 616.1 $ 1.0
Assets Held for Sale  -  -  -  -  -  -  -  -  -  -  23.0
Financing and Leasing Assets  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  6,831.8  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  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  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  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  4,044.1  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  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  4,278.4  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 - Factoring Receivables  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
Financing and Leasing Assets  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)
4Q 13 3Q 13 2Q 13 1Q 13 4Q 12 3Q 12 2Q 12 1Q 12 2013 2012 2011
$ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ %
Gross Charge-offs   
 Transportation and International Finance $ 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  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  6.2 0.62%  12.7 1.15%  29.5 2.36%  5.9 0.46%  6.6 0.51%  4.9 0.37%  5.5 0.36%  10.2 0.66%  54.3 1.17%  27.2 0.48%  49.3 0.56%
 Total CIT $ 29.6 0.54% $ 36.6 0.67% $ 48.1 0.87% $ 24.3 0.46% $ 34.1 0.67% $ 35.5 0.71% $ 28.0 0.55% $ 44.2 0.88% $ 138.6 0.64% $ 141.8 0.70% $ 368.8 1.61%
Net Charge-offs
 Transportation and International Finance $ 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 (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  5.6 0.55%  11.4 1.03%  25.7 2.06%  2.6 0.20%  4.2 0.32%  1.1 0.08%  2.5 0.17%  6.9 0.45%  45.3 0.97%  14.7 0.26%  31.8 0.36%
 Total CIT $ 15.0 0.27% $ 27.1 0.50% $ 29.1 0.53% $ 9.5 0.18% $ 17.4 0.34% $ 18.0 0.36% $ 16.8 0.33% $ 22.0 0.44% $ 80.7 0.37% $ 74.2 0.37% $ 265.2 1.16%
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 and International Finance $ 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  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  58.0 13.14%  68.6 1.66%  72.0 1.59%  74.0 1.46%  75.0 1.44%  84.0 1.60%  91.0 1.69%  121.1 1.98%  58.0 13.14%  75.0 1.44%  150.5 2.44%
 Total CIT $ 240.7 1.29% $ 258.3 1.18% $ 278.5 1.28% $ 294.1 1.33% $ 331.8 1.59% $ 412.0 2.02% $ 454.9 2.26% $ 481.9 2.35% $ 240.7 1.29% $ 331.8 1.59% $ 702.0 3.53%

12

CIT Group Inc.
Selected Data & Ratios
(dollars in millions, except per share data)
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)   $ 21,978.0   $ 21,881.4   $ 22,004.5   $ 21,322.3   $ 20,509.5  $ 20,079.7   $ 20,432.7   $ 20,135.6 $ 21,774.7   $ 20,307.9   $ 22,914.1
Average Earning Assets (AEA) (3) 34,168.5 33,904.8 33,678.1 33,022.8 32,344.3 32,264.0 32,337.5 33,096.3 33,649.6 32,522.0 34,371.6
Average Operating Leases (AOL) 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  8,855.6  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) 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) 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(1) 9.39% 9.57% 9.94% 10.09% 10.36% 10.56% 10.97% 10.84% 9.76% 10.68% 11.69%
Net Yield(2) 7.30% 7.50% 7.87% 7.96% 8.39% 8.51% 8.98% 8.81% 7.67% 8.67% 9.66%
Net Finance Revenue as percentage of AEA (Finance Margin) (3) 3.95% 4.22% 4.53% 4.43% 3.86% -1.60% 1.13% -4.25% 4.28% -0.24% 1.53%
Adjusted Net Finance Margin 4.00% 4.22% 4.62% 4.64% 4.88% 4.02% 4.41% 2.97% 4.37% 4.06% 2.68%
SG&A as percentage of AEA (4) 3.15% 2.70% 2.62% 2.78% 2.72% 2.85% 2.79% 2.66% 2.82% 2.75% 2.57%
Efficiency Ratio (5) 57.8% 49.5% 47.8% 52.7% 45.5% -541.6% 97.6% -229.0% 52.0% 155.4% 59.7%
Return on Average Earning Assets (ROA) 1.52% 2.35% 2.18% 1.97% 2.56% -3.71% -0.90% -5.16% 2.01% -1.82% 0.04%
Return on Average Common Stockholders' Equity (ROE) 5.9% 9.1% 8.5% 7.7% 10.0% -14.3% -3.5% -19.5% 7.8% -7.0% 0.2%
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 $ 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 8,439.5 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 8,791.2 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 16.7% 16.7% 16.3% 16.4% 16.2% 16.7% 18.0% 17.6% 16.7% 16.2% 18.8%
Total Capital Ratio 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) 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 $ 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 $ 42.98 $ 42.36 $ 41.33 $ 40.35 $ 39.61 $ 38.47 $ 39.86 $ 40.19 $ 42.98 $ 39.61 $ 42.23
(1)Gross Yield includes Rental Income plus Interest Income as a % of AEA
(2)Net Yield includes Rental Income plus Interest Income less Depreciation and Maintenance & operating lease expenses as a % of AEA

(3)See Non-GAAP Disclosures
(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)
    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  $ 2,528.6   $ 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   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   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   12,032.6   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  (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   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   1,248.9   1,100.4   946.8   788.4   621.6   455.5   274.6   91.1     1,248.9   621.6   9.2 
  Other assets   195.0   196.3   135.3   154.4   164.6   169.0   176.2   227.9     195.0   164.6   249.3 
  Total Assets  $ 16,131.3  $ 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  $ 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   854.6   147.1   49.3   47.2   49.6   487.6   504.0   511.5     854.6   49.6   576.7 
  Other liabilities   183.9   181.5   184.5   153.3   122.7   102.0   109.1   147.1     183.9   122.7   148.0 
  Total Liabilities   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   2,596.6   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  $ 16,131.3  $ 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  $ 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 and International Finance   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   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  $ 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) 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  16.8%  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  18.1%  19.8%  20.8%  21.3%  22.7%  27.4%  29.8%  32.9%    18.1%  22.7%  37.5% 
                           
    4Q 13  3Q 13  2Q 13  1Q 13  4Q 12  3Q 12  2Q 12  1Q 12    2013  2012  2011 
Income Statement                         
  Interest income  $ 149.0  $ 143.0  $ 135.7  $ 122.8  $ 111.0  $ 98.9  $ 87.5  $ 83.6    $ 550.5  $ 381.0  $ 273.1 
  Interest expense  (47.4) (42.6) (42.8) (39.3) (81.5) (38.0) (35.1) (37.1)   (172.1) (191.7) (118.6)
  Net Finance Revenue   101.6   100.4   92.9   83.5   29.5   60.9   52.4   46.5     378.4   189.3   154.5 
  Other income   68.9   60.6   56.1   48.3   54.4   40.2   49.7   27.2     233.9   171.5   70.5 
  Provision for credit losses  (25.3) (29.7) (17.1) (21.0) (48.3) (12.1) (20.6) (12.9)   (93.1) (93.9) (42.5)
  Other expenses  (90.5) (89.8) (86.9) (74.1) (50.0) (56.5) (47.1) (32.8)   (341.3) (186.4) (69.1)
  Income before taxes   54.7   41.5   45.0   36.7  (14.4)  32.5   34.4   28.0     177.9   80.5   113.4 
  Provision for income taxes  (19.9) (16.6) (18.3) (14.6) (4.6) (13.1) (12.1) (9.6)   (69.4) (39.4) (45.8)
  Net income  $ 34.8  $ 24.9  $ 26.7  $ 22.1  $ (19.0) $ 19.4  $ 22.3  $ 18.4    $ 108.5  $ 41.1  $ 67.6 
14

CIT Group Inc. 
Non-GAAP Disclosures (1) 
(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 
Earning assets(2):                         
  Loans   $ 18,629.2    $ 21,822.7    $ 21,678.3    $ 22,120.4    $ 20,847.6    $ 20,383.4    $ 20,097.9    $ 20,511.5      $ 18,629.2    $ 20,847.6    $ 19,905.9 
  Operating lease equipment, net  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   4,377.9   1,122.2   1,186.6   646.8   646.4   1,421.1   1,434.0   1,701.9     4,377.9   646.4   2,332.3 
  Credit balances of factoring clients  (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   $ 34,706.4   $ 34,243.6   $ 33,986.1   $ 33,820.1   $ 32,649.2   $ 32,666.3   $ 32,279.0   $ 33,022.5     $ 34,706.4   $ 32,649.2   $ 33,019.1 
                           
    4Q 13  3Q 13  2Q 13  1Q 13  4Q 12  3Q 12  2Q 12  1Q 12    2013  2012  2011 
Total Net Revenues (3):                         
  Interest income   $ 338.7   $ 338.2   $ 352.3   $ 356.7   $ 357.8   $ 376.3   $ 411.1   $ 427.1     $ 1,385.9   $ 1,572.3   $ 2,231.9 
  Rental income on operating leases   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   802.5   811.1   836.6   833.1   838.1   851.4   886.6   897.0     3,283.3   3,473.1   4,017.5 
  Interest expense  (286.7) (278.0) (281.4) (291.9) (366.6) (816.0) (634.2) (1,080.6)   (1,138.0) (2,897.4) (2,794.4)
  Depreciation on operating lease equipment  (139.5) (134.2) (133.6) (133.3) (127.5) (126.5) (125.3) (133.9)   (540.6) (513.2) (538.6)
  Maintenance & Other  (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)  337.3   357.5   381.3   365.5   312.1  (129.2)  91.5  (351.3)    1,441.6  (76.9)  526.7 
  Other income   127.9   104.8   79.3   70.1   171.7   86.7   139.4   255.3     382.1   653.1   952.8 
  Total net revenue   $ 465.2   $ 462.3   $ 460.6   $ 435.6   $ 483.8   $ (42.5)  $ 230.9   $ (96.0)    $ 1,823.7   $ 576.2   $ 1,479.5 
                           
Pre-tax Income ex. Accelerated Debt FSA, OID and Debt Related Transaction Costs                         
  Pre-tax income (loss)  $ 163.3   $ 213.7   $ 216.3   $ 180.8   $ 251.8   $ (294.5)  $ (26.3)  $ (385.8)    $ 774.1   $ (454.8)  $ 178.4 
  Accelerated FSA net discount/(premium) on debt extinguishments and repurchases   9.8   -   8.1   17.8   135.2   453.9   264.9   596.9     35.7   1,450.9   279.2 
  Accelerated original issue discount on debt extinguishments related to the TRS facility  (5.2)  -   -   -  (52.6)  -   -   -    (5.2) (52.6)  - 
  Debt Related - prepayment penalties   -   -   -   -   -   -   -   -     -   -   114.2 
  Debt Related - loss on debt extinguishments   -   -   -   -   -   16.8   21.5   22.9     -   61.2   134.8 
  Pre-tax income (loss) - excluding debt refinancing costs   $ 167.9   $ 213.7   $ 224.4   $ 198.6   $ 334.4   $ 176.2   $ 260.1   $ 234.0     $ 804.6   $ 1,004.7   $ 706.6 
  Pre-tax income (loss) - excluding debt refinancing costs                         
  Transportation and International Finance   $ 116.9   $ 150.6   $ 162.4   $ 148.5   $ 169.4   $ 106.6   $ 113.8   $ 75.7     578.4   465.5   247.9 
  North American Commercial Finance   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  (4.6) (5.4) (11.1) (4.2)  37.4  (30.9)  23.9  (60.3)   (25.3) (29.9)  21.0 
  Corporate and Other  (79.4) (15.1) (16.6) (10.5) (38.5) (33.9) (36.1) (25.7)   (121.6) (134.2) (182.8)
  Total   $ 167.9   $ 213.7   $ 224.4   $ 198.6   $ 334.4   $ 176.2   $ 260.1   $ 234.0     $ 804.6   $ 1,004.7   $ 706.6 
                           
NFR excluding accelerated FSA, OID and Debt Prepayment
Costs ($ and % of AEA) (4) 		                        
  Net finance revenue   $ 337.3   $ 357.5   $ 381.3   $ 365.5   $ 312.1   $ (129.2)  $ 91.5   $ (351.3)    $ 1,441.6   $ (76.9)  $ 526.7 
  Accelerated FSA net discount/(premium) on debt extinguishments and repurchases   9.8   -   8.1   17.8   135.2   453.9   264.9   596.9     35.7   1,450.9   279.2 
  Accelerated original issue discount on debt extinguishments related to the TRS facility  (5.2)  -   -   -  (52.6)  -   -   -    (5.2) (52.6)  - 
  Debt related - prepayment costs   -   -   -   -   -   -   -   -     -   -   114.2 
  Adjusted net finance revenue   $ 341.9   $ 357.5   $ 389.4   $ 383.3   $ 394.7   $ 324.7   $ 356.4   $ 245.6     $ 1,472.1   $ 1,321.4   $ 920.1 
                           
  Net finance revenue - reported  3.95%  4.22%  4.53%  4.43%  3.86%  -1.60%  1.13%  -4.25%    4.28%  -0.24%  1.53% 
  Accelerated FSA net discount/(premium) on debt extinguishments and repurchases  0.11%  -   0.09%  0.21%  1.67%  5.62%  3.28%  7.22%    0.11%  4.46%  0.81% 
  Accelerated original issue discount on debt extinguishments related to the TRS facility  -0.06%  -   -   -   -0.65%  -   -   -     -0.02%  -0.16%  -  
  Debt related - prepayment costs  -   -   -   -   -   -   -   -     -   -   0.33% 
  Adjusted net finance revenue  4.00%  4.22%  4.62%  4.64%  4.88%  4.02%  4.41%  2.97%    4.37%  4.06%  2.68% 
                           
Tangible book value                         
  Total common stockholders' equity   $ 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   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   $ 8,483.9   $ 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 FSA and debt prepay 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)   $  (238.3)   $  (261.1)   $ (326.0)   $ (355.3)   $ (401.0)   $ (452.5)   $ (543.5)     $ (35.0)   $ (355.3)   $ (621.8)
  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) (2,580.8) (2,650.3) (2,791.3) (2,894.8) (3,038.8) (3,148.8) (3,343.6)   (2,303.2) (2,894.8) (3,478.4)
  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  (283.6) (303.5) (313.7) (333.9) (369.4) (519.8) (1,016.3) (1,327.8)   (283.6) (369.4) (2,018.9)
  Other Liabilities   -   0.3   0.4   1.3   1.7   4.4   6.5   12.7     -   1.7   25.7 
  Total Liabilities  (284.4) (303.3) (312.6) (330.7) (364.2) (510.2) (1,002.7) (1,305.0)   (284.4) (364.2) (1,978.7)
  Net Accretable Discount  $ (2,018.8) $  (2,277.5) $ (2,337.7) $ (2,460.6) $ (2,530.6) $ (2,528.6) $ (2,146.1) $ (2,038.6)   $(2,018.8) $ (2,530.6) $ (1,499.7)
                           
    4Q 13  3Q 13  2Q 13  1Q 13  4Q 12  3Q 12  2Q 12  1Q 12    2013  2012  2011 
Income Statement Accretion / (Amortization):                         
  Interest Income          $ 40.7  $ 59.1  $ 76.7  $ 91.1      $ 267.6  $ 745.4 
  Interest Expense          (148.6) (494.7) (308.4) (686.8)     (1,638.5) (904.0)
  Rental Income on Operating Leases          (5.4) (4.9) (6.4) (8.1)     (24.8) (56.1)
  Depreciation Expense (1)          52.6   49.8   54.0   57.5       213.9   240.0 
     Other Income (2)          43.6   3.3   39.0   10.2       96.1   109.9 
  Total Impact (pre-tax)         $ (17.1) $ (387.4) $ (145.1) $ (536.1)     $ (1,085.7) $ 135.2 
                           

 

(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.

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 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

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