Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 07, 2020 | Jun. 28, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | CIT GROUP INC. | ||
Entity Central Index Key | 0001171825 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity File Number | 001-31369 | ||
Entity Tax Identification Number | 65-1051192 | ||
Entity Address, Address Line One | 11 West 42nd Street | ||
Entity Address, City or Town | New York | ||
Entity Address, Postal Zip Code | 10036 | ||
City Area Code | 212 | ||
Local Phone Number | 461-5200 | ||
Entity Address, State or Province | NY | ||
Entity Shell Company | false | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 98,031,696 | ||
Entity Public Float | $ 4,951,528,691 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Interactive Data Current | Yes | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Portions of the registrant's definitive proxy statement relating to the 2020 Annual Meeting of Stockholders are incorporated by reference into Part III | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Security Exchange Name | NYSE | ||
Trading Symbol | CIT | ||
5.625% Non-Cumulative Perpetual Preferred Stock, Series B | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 5.625% Non-Cumulative Perpetual Preferred Stock, Series B, par value $0.01 per share | ||
Security Exchange Name | NYSE | ||
Trading Symbol | CITPRB |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets | |||
Cash and due from banks, including restricted balances of $875.2 at December 31, 2019 and $25.5 at December 31, 2018 (see Note 10 for amounts pledged) | $ 990.1 | $ 198.8 | |
Interest bearing cash, including restricted balances of $2.2 at December 31, 2019 and $2.5 at December 31, 2018 (see Note 10 for amounts pledged) | 1,695.5 | 1,596.8 | |
Securities purchased under agreement to resell | 950 | 400 | |
Investment securities, including securities carried at fair value with changes recorded in net income of $47.2 at December 31, 2019 and $44.6 at December 31, 2018 (see Note 10 for amounts pledged) | 6,276.8 | 6,233.8 | |
Assets held for sale | 32.1 | 88.4 | |
Loans (see Note 10 for amounts pledged) | 30,998.9 | 30,795.4 | |
Allowance for loan losses | (482.6) | (489.7) | |
Total loans, net of allowance for loan losses | 30,516.3 | 30,305.7 | |
Operating lease equipment, net (see Note 10 for amounts pledged) | [1] | 7,319.7 | 6,970.6 |
Bank-owned life insurance | 1,043.2 | 814.1 | |
Goodwill | 369.9 | 369.9 | |
Other assets, including $190.7 at December 31, 2019 and $119.9 at December 31, 2018, at fair value | 1,639.2 | 1,309.5 | |
Assets of discontinued operations | 0 | 249.8 | |
Total Assets | 50,832.8 | 48,537.4 | |
Liabilities | |||
Deposits | 35,139.5 | 31,239.5 | |
Credit balances of factoring clients | 1,176.2 | 1,674.4 | |
Other liabilities, including $100.8 at December 31, 2019 and $146.6 at December 31, 2018, at fair value | 1,704.7 | 1,261.1 | |
Borrowings, including $14.3 at December 31, 2019 and $0.9 at December 31, 2018 contractually due within twelve months | 6,473.4 | 8,118.8 | |
Liabilities of discontinued operations | 297 | ||
Total Liabilities | 44,493.8 | 42,590.8 | |
Stockholders’ Equity | |||
Preferred Stock: $0.01 par value, 100,000,000 shares authorized, 8,325,000 and 325,000 shares at December 31, 2019 and 2018, respectively, were issued and outstanding | 525 | 325 | |
Common Stock: $0.01 par value, 600,000,000 shares authorized. Issued: 162,188,287 at December 31, 2019 and 161,073,078 at December 31, 2018 Outstanding: 94,742,564 at December 31, 2019 and 100,919,707 at December 31, 2018 | 1.6 | 1.6 | |
Paid-in capital | 6,853.7 | 6,810.8 | |
Retained earnings | 2,307.6 | 1,924.4 | |
Accumulated other comprehensive loss | (52.1) | (178.3) | |
Treasury stock: 67,445,723 shares at December 31, 2019 and 60,153,371 shares at December 31, 2018 at cost | (3,296.8) | (2,936.9) | |
Total Common Stockholders’ Equity | 5,814 | 5,621.6 | |
Total Equity | 6,339 | 5,946.6 | |
Total Liabilities and Equity | $ 50,832.8 | $ 48,537.4 | |
[1] | Includes off-lease Rail equipment of $519.1 million and $380.4 million at December 31, 2019 and December 31, 2018, respectively. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Cash and interest bearing deposits, restricted | $ 875.2 | $ 25.5 |
Restricted interest-bearing deposits | 2.2 | 2.5 |
Securities carried at fair value with changes recorded in net income | 47.2 | 44.6 |
Other assets at fair value | 190.7 | 119.9 |
Other liabilities at fair value | 100.8 | 146.6 |
Borrowings contractually due within twelve months | $ 14.3 | $ 0.9 |
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred Stock, shares issued (in shares) | 8,325,000 | 325,000 |
Preferred Stock, shares outstanding (in shares) | 8,325,000 | 325,000 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common Stock, shares issued (in shares) | 162,188,287 | 161,073,078 |
Common Stock, shares outstanding (in shares) | 94,742,564 | 100,919,707 |
Treasury stock, shares at cost (in shares) | 67,445,723 | 60,153,371 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest income | |||
Interest and fees on loans | $ 1,783.3 | $ 1,671.8 | $ 1,638.1 |
Other interest and dividends | 233.5 | 218.6 | 197.5 |
Interest income | 2,016.8 | 1,890.4 | 1,835.6 |
Interest expense | |||
Interest on deposits | 664.9 | 460.4 | 373.3 |
Interest on borrowings | 287.1 | 354.7 | 344.4 |
Interest expense | 952 | 815.1 | 717.7 |
Net interest revenue | 1,064.8 | 1,075.3 | 1,117.9 |
Provision for credit losses | 110.8 | 171 | 114.6 |
Net interest revenue, after credit provision | 954 | 904.3 | 1,003.3 |
Non-interest income | |||
Rental income on operating leases | 857.7 | 1,009 | 1,007.4 |
Other non-interest income | 415.2 | 373.8 | 364.2 |
Total non-interest income | 1,272.9 | 1,382.8 | 1,371.6 |
Total revenue, net of interest expense and credit provision | 2,226.9 | 2,287.1 | 2,374.9 |
Non-interest expenses | |||
Depreciation on operating lease equipment | 308.6 | 311.1 | 296.3 |
Maintenance and other operating lease expenses | 180.7 | 230.4 | 222.9 |
Operating expenses | 1,113.2 | 1,070 | 1,188.5 |
Goodwill impairment | 255.6 | ||
Loss on debt extinguishment and deposit redemption | 0.5 | 38.6 | 220 |
Total non-interest expenses | 1,603 | 1,650.1 | 2,183.3 |
Income from continuing operations before provision (benefit) for income taxes | 623.9 | 637 | 191.6 |
Provision (benefit) for income taxes | 94.5 | 164.9 | (67.8) |
Income from continuing operations | 529.4 | 472.1 | 259.4 |
Discontinued operations | |||
Income (loss) from discontinued operations, net of taxes | 0.5 | (8.7) | 90.2 |
Gain (loss) on sale of discontinued operations, net of taxes | (16.3) | 118.6 | |
Total income (loss) from discontinued operations, net of taxes | 0.5 | (25) | 208.8 |
Net income | 529.9 | 447.1 | 468.2 |
Preferred stock dividends | 18.9 | 18.9 | 9.8 |
Net income available to common shareholders | 511 | 428.2 | 458.4 |
Income from continuing operations available to common shareholders | $ 510.5 | $ 453.2 | $ 249.6 |
Basic income per common share | |||
Income from continuing operations | $ 5.29 | $ 3.85 | $ 1.54 |
Income (loss) from discontinued operations | 0.01 | (0.21) | 1.28 |
Basic income per share | 5.30 | 3.64 | 2.82 |
Diluted income per common share | |||
Income from continuing operations | 5.27 | 3.82 | 1.52 |
Income (loss) from discontinued operations | (0.21) | 1.28 | |
Diluted income per share | $ 5.27 | $ 3.61 | $ 2.80 |
Average number of common shares (thousands) | |||
Basic | 96,503 | 117,653 | 162,290 |
Diluted | 96,921 | 118,777 | 163,950 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract] | |||
Net income | $ 529.9 | $ 447.1 | $ 468.2 |
Other comprehensive income (loss), net of tax | |||
Foreign currency translation adjustments | 11.8 | (16.2) | 53.4 |
Net unrealized gains (losses) on available for sale securities | 96.8 | (59.1) | (10.6) |
Changes in benefit plans net gains (loss) and prior service (cost)/credit | 17.6 | (16) | 10.8 |
Other comprehensive income (loss), net of tax | 126.2 | (91.3) | 53.6 |
Comprehensive income | $ 656.1 | $ 355.8 | $ 521.8 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock, at Cost | Noncontrolling Minority Interests |
Beginning balance at Dec. 31, 2016 | $ 10,003.1 | $ 2.1 | $ 8,765.8 | $ 1,553 | $ (140.1) | $ (178.1) | $ 0.4 | |
Adoption of Accounting Standard Update at Dec. 31, 2016 | 1 | (1) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 468.2 | 468.2 | ||||||
Other comprehensive income, net of tax | 53.6 | 53.6 | ||||||
Dividends paid | (113.7) | (113.7) | ||||||
Issuance of preferred stock | 318 | $ 325 | (7) | |||||
Share repurchases | (3,431.9) | (9.6) | (3,422.3) | |||||
Amortization of restricted stock, stock option and performance shares expenses | 20.3 | 45.1 | (24.8) | |||||
Employee stock purchase plan | 2.8 | 2.8 | ||||||
Other | (0.4) | $ (0.4) | ||||||
Ending balance at Dec. 31, 2017 | 7,320 | 325 | 2.1 | 8,798.1 | 1,906.5 | (86.5) | (3,625.2) | |
Adoption of Accounting Standard Update at Dec. 31, 2017 | 0.2 | 0.7 | (0.5) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 447.1 | 447.1 | ||||||
Other comprehensive income, net of tax | (91.3) | (91.3) | ||||||
Dividends paid | (115.9) | (115.9) | ||||||
Share repurchases | (1,626.7) | (1,626.7) | ||||||
Retirement of Treasury Stock | (0.5) | (2,029.1) | (314) | 2,343.6 | ||||
Amortization of restricted stock, stock option and performance shares expenses | 10.3 | 38.9 | (28.6) | |||||
Employee stock purchase plan | 2.9 | 2.9 | ||||||
Ending balance at Dec. 31, 2018 | 5,946.6 | 325 | 1.6 | 6,810.8 | 1,924.4 | (178.3) | (2,936.9) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 529.9 | 529.9 | ||||||
Other comprehensive income, net of tax | 126.2 | 126.2 | ||||||
Dividends paid | (146.7) | (146.7) | ||||||
Issuance of preferred stock | 195.1 | 200 | (4.9) | |||||
Share repurchases | (340.9) | (340.9) | ||||||
Amortization of stock compensation expenses | 25.8 | 44.8 | (19) | |||||
Employee stock purchase plan | 3 | 3 | ||||||
Ending balance at Dec. 31, 2019 | $ 6,339 | $ 525 | $ 1.6 | $ 6,853.7 | $ 2,307.6 | $ (52.1) | $ (3,296.8) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Stockholders Equity [Abstract] | |||
Dividends paid per common share | $ 1.30 | $ 0.82 | $ 0.61 |
Dividends paid per preferred share | $ 58 | $ 58 | $ 30.29 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operations | |||
Net income | $ 529.9 | $ 447.1 | $ 468.2 |
Adjustments to reconcile net income to net cash flows from operations: | |||
Provision for credit losses | 110.8 | 171 | 114.6 |
Depreciation on operating lease equipment | 308.6 | 311.1 | 296.3 |
Amortization of stock compensation expenses | 44.8 | 38.9 | 45.1 |
Net gain on asset sales and impairments on assets held for sale | (71.6) | (128.6) | (298.1) |
Loss on debt extinguishment and deposit redemption | 0.5 | 38.6 | 259 |
Provision for deferred income taxes | 115.1 | 118.3 | (39.7) |
Decrease (increase) in finance receivables held for sale | 33.9 | (57.4) | (96.2) |
Goodwill impairment | 255.6 | ||
(Increase) decrease in other assets | (303.8) | 0.1 | 172.3 |
Increase (decrease) in other liabilities | 80.8 | (143.7) | (712.5) |
Other operating activities | 78.2 | 187.1 | 69.6 |
Net cash flows provided by operations | 927.2 | 982.5 | 534.2 |
Cash Flows from Investing Activities | |||
Changes in loans, net | (1,598.3) | (1,883.7) | (195.6) |
Purchases of investment securities and securities purchased under agreement to resell | (12,953.8) | (3,020.9) | (7,022.8) |
Proceeds from sales and maturities of investment securities and securities purchased under agreement to resell | 12,543.2 | 2,882.3 | 4,752.5 |
Proceeds from asset and receivable sales | 1,009.5 | 1,548.6 | 907.6 |
Purchases of assets to be leased and other equipment | (807.9) | (655.6) | (793.3) |
Proceeds from sale of OREO, net of repurchases | 37.2 | 64.5 | 107.3 |
Purchase of bank owned life insurance | (200) | (781) | |
Other investing activities | 22.9 | 44 | 63.6 |
Net cash flows (used in) provided by investing activities | (1,947.2) | 43.8 | 7,064.3 |
Cash Flows from Financing Activities | |||
Proceeds from the issuance of term debt and FHLB advances | 2,694.3 | 4,608.9 | 2,465.3 |
Repayments of term debt, FHLB advances, and net settlements | (4,365.1) | (5,395.9) | (9,601.9) |
Net increase (decrease) in deposits | 3,898.1 | 1,679.6 | (2,729.1) |
Repurchase of common stock | (340.9) | (1,626.7) | (3,431.9) |
Net proceeds from issuance of preferred stock | 195.1 | 318 | |
Dividends paid | (146.7) | (115.9) | (113.7) |
Other financing activities | (26.7) | (92.1) | 10.2 |
Net cash flows provided by (used in) financing activities | 1,908.1 | (942.1) | (13,083.1) |
Effect of exchange rate changes on cash and cash equivalents | 1.9 | (15) | 15.6 |
Increase (decrease) in cash, cash equivalents and restricted cash | 890 | 69.2 | (5,469) |
Cash, cash equivalents, and restricted cash beginning of period | 1,795.6 | 1,726.4 | 7,195.4 |
Cash, cash equivalents, and restricted cash end of period | 2,685.6 | 1,795.6 | 1,726.4 |
Supplementary Cash Flow Disclosures | |||
Interest paid | (946) | (809.8) | (915.2) |
Federal, foreign, state and local income taxes refunded (paid), net | 41.3 | (25.2) | (40.5) |
Supplementary Non Cash Flow Disclosure | |||
Transfer of assets from held for investment to held for sale | 480.5 | 397.9 | 2,109.6 |
Transfer of assets from held for sale to held for investment | 25.5 | 64.8 | 174 |
Deposits on flight equipment purchases applied to acquisition of flight equipment purchases, and origination of finance leases, capitalized interest, and buyer furnished equipment | 91.2 | ||
Transfers of assets to OREO | 21.4 | 39.4 | 99 |
Finance lease unexercised bargain purchase options | 17.5 | ||
Commitments extended during the period on affordable housing investment credits | $ 80.5 | 64.1 | 60.1 |
NACCO | |||
Cash Flows from Investing Activities | |||
Proceeds from sale of business | $ 1,064.6 | ||
Commercial Air | |||
Cash Flows from Investing Activities | |||
Proceeds from sale of business | $ 10,026 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) $ in Millions | Dec. 31, 2017USD ($) |
Reconciliation of cash, cash equivalents and restricted cash | |
Cash and due from banks, including restricted balances of $875.2, $25.5, and $42.9 at December 31, 2019, December 31, 2018, and December 31, 2017, respectively | $ 278.6 |
Interest bearing cash, including restricted balances of $2.2, $2.5, and $81.8 at December 31, 2019, December 31, 2018, and December 31, 2017, respectively | 1,440.1 |
Cash included in assets of discontinued operations | 7.7 |
Total cash, cash equivalents, and restricted cash shown in the Statements of Cash Flows | 1,726.4 |
Cash and due from banks, restricted | 42.9 |
Restricted interest-bearing deposits | $ 81.8 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 — BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CIT Group Inc., together with its subsidiaries (collectively "we", "our", "CIT" or the "Company"), is a bank holding company ("BHC") and a financial holding company ("FHC"). CIT was formed in 1908 and provides financing, leasing and advisory services principally to middle-market companies in a wide variety of industries, primarily in North America. We also provide banking and related services to commercial and individual customers through our banking subsidiary, CIT Bank, N.A. ("CIT Bank" or the “Bank”), which includes over 60 branches located in Southern California and its online bank. CIT is regulated by the Board of Governors of the Federal Reserve System ("FRB") and the Federal Reserve Bank of New York ("FRBNY") under the U.S. Bank Holding Company Act of 1956, as amended. CIT Bank is regulated by the Office of the Comptroller of the Currency of the U.S. Department of the Treasury ("OCC"). On January 1, 2020, CIT acquired Mutual of Omaha Bank (“MOB”), the savings bank subsidiary of Mutual of Omaha Insurance Company and Omaha Financial Holdings, Inc. (“OFHI”) for approximately $1 billion in cash and stock. See Note 29 – Subsequent Events . BASIS OF PRESENTATION Basis of Financial Information The accounting and financial reporting policies of CIT conform to generally accepted accounting principles ("GAAP") in the United States and the preparation of the consolidated financial statements is in conformity with GAAP which requires management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates and assumptions. Some of the more significant estimates include: allowance for loan losses and loan impairment, realizability of deferred tax assets, and goodwill. Additionally, where applicable, the policies conform to accounting and reporting guidelines prescribed by bank regulatory authorities. Principles of Consolidation The accompanying consolidated financial statements include financial information related to CIT and its majority-owned subsidiaries and those variable interest entities (“VIEs”) where the Company is the primary beneficiary ("PB"). In preparing the consolidated financial statements, all significant inter-company accounts and transactions have been eliminated. Assets held in an agency or fiduciary capacity are not included in the consolidated financial statements. Discontinued Operations There were no discontinued operations as of December 31, 2019. Discontinued operations as of December 31, 2018 was comprised of the Business Air business and residual activity of the Financial Freedom business, which was sold in May 2018. Although the economic benefit and risk of the business had been transferred to the buyer, certain assets and liabilities of Financial Freedom remained as the required investor consent was not received to qualify for sale treatment. In conjunction with the sale of Financial Freedom, the Company also sold its reverse mortgage portfolio comprised of loans and related other real estate owned ("OREO") assets, which was serviced by Financial Freedom and was previously reported in continuing operations. Collectively, the sale of the Financial Freedom business and the reverse mortgage portfolio is referred to as the "Financial Freedom Transaction". In July 2019, CIT obtained the final investor consent to transfer the servicer obligation to a third party and derecognized the assets, which had previously not met the accounting requirements for sale treatment, and related secured borrowing. During the third quarter, the residual assets and liabilities of discontinued operations and related income statement activity were reclassified to continuing operations. Income (loss) from discontinued operations reflects the activities of the Business Air and Financial Freedom businesses for the years ended December 31, 2019, 2018 and 2017, and Commercial Air (a component of Aerospace) for the year ended December 31, 2017. We completed the sale of our Commercial Air business on April 4, 2017. See further discussion in Note 2 – Discontinued Operations SIGNIFICANT ACCOUNTING POLICIES Loans and Leases CIT extends credit to commercial customers through a variety of financing arrangements including term loans, revolving credit facilities, finance leases and operating leases. CIT also extends credit through Consumer Loans, including residential mortgages and had a portfolio of reverse mortgages, which was sold on May 31, 2018. The amounts outstanding on term loans, Consumer Loans, revolving credit facilities and finance leases are referred to as loans. These loans, when combined with Assets Held for Sale (“AHFS”) and Operating lease equipment, net It is CIT’s expectation that the majority of the loans and leases originated will be held for the foreseeable future or until maturity. In certain situations, for example to manage concentrations and/or credit risk or where returns no longer meet specified targets, some or all of certain exposures are sold. Loans for which the Company has the intent and ability to hold for the foreseeable future or until maturity are classified as held for investment (“HFI”). If the Company no longer has the intent or ability to hold loans for the foreseeable future, then the loans are transferred to AHFS. Loans originated with the intent to sell are classified as AHFS. Loans originated and classified as HFI are recorded at amortized cost. Loan origination fees and certain direct origination costs are deferred and recognized as adjustments to interest income over the contractual lives of the related loans. Unearned income on leases and discounts and premiums on loans purchased are amortized to interest income using the effective interest method. For loans classified as AHFS, the amortization of discounts and premiums on loans purchased and unearned income ceases. Finance leases originated and classified as HFI are recorded at the aggregate future minimum lease payments plus estimated residual values less unearned finance income. Management performs periodic reviews of estimated residual values, with other than temporary impairment (“OTTI”) recognized in current period earnings. If it is determined that a loan should be transferred from HFI to AHFS, then the loan is transferred at the lower of its amortized cost basis or fair value on the date of transfer, which excludes the allowance for credit losses. Prior to the transfer, CIT applies its write-off policy to the recorded investment. If the recorded investment exceeds the loan’s fair value at the date of transfer, a valuation allowance (“VA”) is established equal to the difference between the recorded investment and fair value. Once classified as AHFS, the amount by which the amortized cost exceeds fair value is recorded as a change in the VA and is reflected as a reduction to other non-interest income. If it is determined that a loan should be transferred from AHFS to HFI, the loan is transferred at the lower of cost or fair value on the transfer date, which coincides with the date of change in management’s intent. The difference between the carrying value of the loan and the fair value, if lower, is reflected as a loan discount at the transfer date, which reduces its carrying value. Subsequent to the transfer, the discount is accreted into earnings as an increase to interest income over the life of the loan using the effective interest method. Loans acquired are initially recorded at their fair value on the acquisition date. For loans that are not considered credit impaired at the date of acquisition and for which cash flows are evaluated based on contractual terms, a premium or discount is recorded, representing the difference between the unpaid principal balance and the fair value. The discount or premium is accreted or amortized to earnings using the effective interest method as a yield adjustment over the remaining contractual terms of the loans and is recorded in Interest Income. If the loan is prepaid, the remaining discount or premium is recognized in Interest Income. If the loan is sold, the remaining discount is considered in the resulting gain or loss on sale. If the loan is subsequently classified as non-accrual, or transferred to AHFS, accretion or amortization of the discount (premium) is ceased. For purposes of income recognition, and consistent with valuation models across loan portfolios, the Company has elected not to take a position on the movement of future interest rates in the applicable model. If interest rates rise, the loans will generate higher income. If rates fall, the loans will generate lower income. Purchased Credit-Impaired Loans Purchased credit-impaired loans (“PCI loans”) were determined as of the date of purchase to have evidence of credit quality deterioration since origination, which make it probable that the Company will be unable to collect all contractually required payments (principal and interest). Evidence of credit quality deterioration as of the purchase date may include past due status, recent borrower credit scores, credit rating (probability of obligor default) and recent loan-to-value ratios. Commercial PCI Loans are accounted for as individual loans. Conversely, Consumer PCI Loans with similar common risk characteristics are pooled together for accounting purposes at the cohort level. Common risk characteristics consist of similar credit risk (e.g., delinquency status, loan-to-value, or credit risk rating) and at least one other predominant risk characteristic (e.g., loan type, collateral type, interest rate index, date of origination or term). For pooled loans, each pool is accounted for as a single asset (i.e., one unit of account) with a single composite interest rate and an aggregate expectation of cash flows for the pool. At acquisition, PCI loans are initially recorded at estimated fair value, which is determined by discounting each Commercial Loan’s or consumer pool’s principal and interest cash flows expected to be collected using a discount rate for similar instruments with adjustments that management believes a market participant would consider. The Company estimates the cash flows expected to be collected at acquisition using internal credit risk and prepayment risk models that incorporate management’s best estimate of current key assumptions, such as default rates, loss severity and prepayment speeds of the loan. For PCI loans, the discount recorded includes accretable and non-accretable components. The accretable yield is measured as the excess of the cash flows expected to be collected, estimated at the acquisition date, over the recorded investment (estimated fair value at acquisition) and is recognized in interest income over the remaining life of the loan, or pool of loans, on an effective yield basis. The difference between the cash flows contractually required to be paid, measured as of the acquisition date, over the cash flows expected to be collected is referred to as the non-accretable difference. Subsequent to acquisition, the estimates of the cash flows expected to be collected are evaluated on a quarterly basis for both Commercial PCI Loans (evaluated individually) and Consumer PCI Loans (evaluated on a pool basis). During each subsequent reporting period, the cash flows expected to be collected will be reviewed but will be revised only if it is deemed probable that a significant change has occurred. Probable and significant decreases in expected cash flows as a result of further credit deterioration result in a charge to the provision for credit losses and a corresponding increase to the allowance for loan losses. Probable increases in cash flows expected to be collected due to improved credit quality result in recovery of any previously recorded allowance for loan losses, to the extent applicable, and an increase in the accretable yield applied prospectively for any remaining increase. The accretable yield is affected by revisions to previous expectations that result in an increase in expected cash flows, changes in interest rate indices for variable rate PCI loans, changes in prepayment assumptions and changes in expected principal and interest payments and collateral values. The Company assumes a flat forward interest curve when analyzing future cash flows for the mortgage loans. Changes in expected cash flows caused by changes in market interest rates are recognized as adjustments to the accretable yield on a prospective basis. Resolutions of loans may include sales to third parties, receipt of payments in settlement with the borrower, or foreclosure of the collateral. Upon resolution, the Company’s policy is to remove an individual Consumer PCI Loan from the pool at its carrying amount. Any difference between the loans carrying amount and the fair value of the collateral or other assets received does not affect the percentage yield calculation used to recognize accretable yield on the pool. This removal method assumes that the amount received from these resolutions approximates the pool performance expectations of cash flows. The accretable yield percentage is unaffected by the resolution. Modifications or refinancing of loans accounted for within a pool do not result in the removal of those loans from the pool; instead, the revised terms are reflected in the expected cash flows within the pool of loans. Reverse Mortgages Reverse mortgage loans are contracts in which a homeowner borrows against the equity in their home and receives cash in one lump sum payment, a line of credit, fixed monthly payments for either a specific term or for as long as the homeowner lives in the home or a combination of these options. Reverse mortgages feature no recourse to the borrower, no required repayment during the borrower’s occupancy of the home (as long as the borrower complies with the terms of the mortgage), and, in the event of foreclosure, a repayment amount that cannot exceed the lesser of either the unpaid principal balance of the loan or the proceeds recovered upon sale of the home. The mortgage balance consists of cash advanced, interest compounded over the life of the loan, capitalized mortgage insurance premiums, and other servicing advances capitalized into the loan. CIT sold its reverse mortgage portfolio on May 31, 2018 in connection with the Financial Freedom Transaction. The Company’s former uninsured reverse mortgages in continuing operations that were determined to be non-PCI were accounted for in accordance with the instructions provided by the staff of the Securities and Exchange Commission (“SEC”) entitled “Accounting for Pools of Uninsured Residential Reverse Mortgage Contracts.” The insured reverse mortgages in continuing operations that were determined to be PCI were accounted for in accordance with the guidance in ASC 310-30. As such, revenue recognition and income measurement for these loans was based on expected rather than contractual cash flows, and the fair value adjustment on these loans included both accretable and non-accretable components. Leases On January 1, 2019, CIT adopted ASU 2016-02, Leases (Topic 842), and subsequent related ASUs using January 1, 2019 as the date of initial application. The leasing standard modifies the accounting, presentation, and disclosures for both lessees and lessors. We elected the modified retrospective transition option which allows for application of the Topic 842 guidance at the adoption date. Therefore, comparative prior period financial information was not adjusted and will continue to be reported under the previous accounting guidance of ASC 840, Leases. No cumulative-effect adjustment to retained earnings as of January 1, 2019 was necessary as a result of adopting the new standard. CIT elected the “package of practical expedients” permitted under the transition guidance which allowed the Company not to reassess its prior conclusions regarding lease identification, lease classification of existing leases, and treatment of initial direct costs on existing leases. Any lease arrangements and significant modifications entered into subsequent to the adoption date (January 1, 2019) are accounted for in accordance with the new standard. Lessee Topic 842 Accounting The leasing standard requires recognition of leases on the consolidated balance sheets as right-of-use (“ROU”) assets and lease liabilities. ROU assets represent our right to use underlying assets for the lease terms and lease liabilities represent our obligation to make lease payments arising from the leases. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. We use our estimated incremental borrowing rate in determining the present value of lease payments. CIT recognized lease liabilities, with corresponding ROU assets, based on the present value of unpaid lease payments for existing operating leases longer than twelve months as of January 1, 2019. The ROU assets were adjusted per Topic 842 transition guidance for existing lease-related balances of accrued and prepaid rent, unamortized lease incentives provided by lessors, and restructuring liabilities. As a result, CIT recognized ROU assets of approximately $210 million in Other Assets and corresponding lease liabilities of approximately $260 million in Other liabilities as of January 1, 2019. The January 1, 2019 incremental borrowing rates determined on a collateralized basis for the remaining lease terms were utilized when determining the present value of lease payments at the date of initial adoption. The Company elected the lessee practical expedient not to separate lease and non-lease components. The Company also elected the short-term lease recognition exemption and will not recognize ROU assets or lease liabilities for leases with a term less than 12 months. Operating lease cost is recognized as a single lease cost on a straight-line basis over the lease term and is recorded in Operating Expenses. Variable lease payments for common area maintenance, property taxes and other operating expenses are recognized as expense in the period when the changes in facts and circumstances on which the variable lease payments are based occur. Lessee Accounting for Periods Prior to Adoption of Topic 842 (Prior to January 1, 2019) Under ASC 840, lessee operating lease arrangements were recorded off balance sheet and ROU assets and lease liabilities were not recognized. Operating lease rent expense was recognized on a straight-line basis over the lease term and recorded in Operating Expenses. Common area maintenance, property taxes, and other operating expenses related to leased premises were also recognized in Operating Expenses, consistent with similar costs for owned locations. Lessor Topic 842 Accounting We determine lease classification at commencement date. Leases not classified as sales-type or direct financing leases are classified as operating leases. The primary accounting criteria we use that results in sales-type lease classification are (a) the lease transfers ownership of the underlying asset to the lessee by the end of the lease term, (b) the lease grants the lessee a purchase option that the lessee is reasonably certain to exercise, (c) using a seventy-five percent or more threshold, the lease term is for a major part of the remaining economic life of the underlying asset (however, we do not use this classification criterion when the lease commencement date falls within the last 25 percent of the total economic life of the underlying asset) and (d) using a ninety percent or more threshold, the present value of the sum of the lease payments and residual value guarantee from the lessee equals or exceeds substantially all of the fair value of the underlying asset. When none of the sales-type lease criteria have been met, leases are classified as direct financing leases when, using a ninety percent or more threshold, the present value of the sum of the lease payments and residual value guarantee purchased from a third party equals or exceeds substantially all of the fair value of the underlying asset. The majority of our finance leases are sales-type leases. We do not lease equipment of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. Lease components are separated from non-lease components that transfer a good or service to the customer; and the non-lease components in our lease contracts are accounted for in accordance with loan accounting guidance. However, the Company elected the operating lease practical expedient for its Rail portfolio leases to not separate non-lease components of railcar maintenance services from associated lease components. This practical expedient is available when both of the following are met: (i) the timing and pattern of transfer of the non-lease components and associated lease component are the same and (ii) the lease component, if accounted for separately, would be classified as an operating lease. Residual realization risk varies by transaction type. Finance leases bear the least risk because contractual payments usually cover approximately 90% of the equipment's cost at the inception of the lease. A significant portion of our leasing portfolios are comprised of operating leases which have higher risk because a smaller percentage of the equipment's value is covered by contractual cash flows over the term of the lease. If the market value of leased equipment decreases at a rate greater than we projected, whether due to rapid technological or economic obsolescence, unusual wear and tear on the equipment, excessive use of the equipment, recession or other adverse economic conditions, or other factors, it could adversely affect the current values and the residual values of such equipment. CIT seeks to mitigate these risks by maintaining relatively young fleet assets with wide operator bases, which can facilitate attractive lease and utilization rates. CIT manages and evaluates residual risk by performing periodic reviews of estimated residual values and monitoring levels of residual realizations. A change in estimated operating lease residual values would result in a change in future depreciation expense. A change in estimated finance lease residual values during the lease term impacts the loss allowance as the lessor considers both the lease receivable and the unguaranteed residual asset when determining the finance lease net investment loss allowance. Incremental costs of a lease that would not have been incurred if the lease had not been obtained are capitalized as initial direct costs. Property taxes paid by the lessor which are reimbursed by the lessee are considered to be lessor costs of owning the asset, and are recorded gross with revenue included in Other non-interest income and expense recorded in Operating expenses. The Company elected a lessor accounting policy election to exclude from revenue and expenses sales taxes and other similar taxes assessed by a governmental authority on lease revenue-producing transactions and collected by the lessor from a lessee. Operating Leases - Operating lease equipment is carried at cost less accumulated depreciation. Operating lease equipment is depreciated to its estimated residual value using the straight-line method over the lease term or estimated useful life of the asset. Rail equipment has estimated useful lives of 40-50 years and other equipment useful lives are generally 3-10 years. Where management’s intention is to sell the operating lease equipment, these are marked to the lower of cost or fair value and classified as AHFS. Depreciation is no longer recognized, and the assets are evaluated for impairment, with any further marks to lower of cost or fair value recorded in other non-interest income. Equipment held for sale in discontinued operations follows the same treatment, with impairment charges reflected in discontinued operations - other non-interest income Equipment received at the end of the lease, which will be sold, is marked to the lower of cost or fair value with the adjustment recorded in other noninterest income. Initial direct costs are amortized over the lease term. Finance Leases - CIT’s finance lease activity primarily relates to leasing of new equipment with the equipment purchase price equal to fair value and therefore there is no selling profit or loss at lease commencement. When there is no selling profit or loss, initial direct costs are deferred at the commencement date and included in the measurement of the net investment in the lease. A lease receivable and unguaranteed residual asset, if any, are recorded for finance leases at present value discounted using the rate implicit in the lease. The lease receivable includes lease payments not yet paid and guarantee of the residual value by the lessee or unrelated third party. Interest income is recognized over the lease term at a constant periodic discount rate on the remaining balance of the lease net investment using the rate implicit in the lease. After the commencement date, lease payments collected are applied to reduce net investment, and net investment is increased for interest income recorded. Variable lease payments that are not included in the lease net investment are recognized as income in the Consolidated Statements of Income in the period when the changes in facts and circumstances on which the variable lease payments are based occur. Lessor Accounting for Periods Prior to Adoption of Topic 842 (Prior to January 1, 2019) Lessor accounting was not fundamentally changed by ASC 842 and remains similar to the prior accounting model, with updates to align with certain changes to the lessee model (e.g., certain definitions, such as initial direct costs, have been updated) and the new revenue recognition standard. The new rules did not have a significant impact on our classification of leases as finance or operating. Under ASC 840 our finance leases typically met criteria for classification as direct financing leases; however, due to a change in lease guidance similar leases are classified as sales-type leases under ASC 842 although there continues to be no selling profit or loss at lease commencement. The primary impact to the Company is related to initial direct costs and certain property taxes. The new lease guidance has a narrower definition of initial direct costs that may be capitalized. Allocated internal costs and professional fees to negotiate and arrange the lease agreements that would have been incurred, regardless of lease execution, no longer qualify as initial direct costs. On January 1, 2019, we began to record gross operating expenses and other non-interest income for property taxes paid by CIT as lessor that are reimbursed by the lessees. Revenue Recognition On January 1, 2018, CIT adopted ASU 2014-09, Revenue Recognition - Revenue from Contracts with Customers (ASC 606) "Interest Income" and "Rental Income on Operating Leases", CIT's two largest revenue items, are out of scope of the guidance, as are many other revenues relating to other financial assets and liabilities, including loans, leases, securities, and derivatives. As a result, the implementation of the new guidance was limited to certain revenue streams within Non-Interest Income, including some immaterial bank related fees and gains or losses related to the sale and disposition of leased equipment and other real estate owned (“OREO”) and requires the Company to apply certain recognition and measurement principles of ASC 606. CIT evaluated its in-scope revenue streams and concluded that ASU 2014-09 did not materially impact the current practice of revenue recognition as ASC 606 was consistent with the accounting policy being applied by the Company for those revenues. Therefore, no change in the timing or amount of income recognized was identified. CIT also determined that costs incurred to obtain or fulfill contracts and financing components relating to in-scope revenue streams were immaterial to the Company. Non-interest revenue, including amounts related to the sale and disposition of leased equipment and OREO, is recognized at an amount reflecting the consideration received, or expected to be received, when control of goods or services is transferred, which generally occurs when services are provided or control of leased equipment or OREO is liquidated. ASU 2014-09 was adopted using the modified retrospective transition method. CIT elected to apply this guidance only to contracts that were not completed at the date of the initial application. The adoption did not have a significant impact on CIT's financial statements or disclosures. No adjustment to the opening balance of retained earnings was necessary. Interest income on HFI loans is recognized using the effective interest method or on a basis approximating a level rate of return over the life of the asset. Interest income includes components of accretion of the fair value discount on loans and lease receivables recorded in connection with Purchase Accounting Adjustments (“PAA”), which are accreted using the effective interest method as a yield adjustment over the remaining contractual term of the loan and recorded in interest income. If the loan is subsequently classified as AHFS, accretion (amortization) of the discount (premium) will cease. Rental revenue on operating leases is recognized on a straight-line basis over the lease term and is included in Non-interest Income. Intangible assets related to acquisitions completed by the Company and to Fresh Start Accounting (“FSA”) adjustments that were applied as of December 31, 2009 (the Convenience Date) to adjust the carrying value of above or below market operating lease contracts to their fair value. The FSA related adjustments (net) are amortized into rental income on a straight-line basis over the remaining term of the respective lease. The recognition of interest income (including accretion) on Commercial Loans (exclusive of small ticket Commercial Loans) is suspended and an account is placed on non-accrual status when, in the opinion of management, full collection of all principal and interest due is doubtful. All future interest accruals, as well as amortization of deferred fees, costs, purchase premiums or discounts are suspended. To the extent the estimated cash flows, including fair value of collateral, does not satisfy both the principal and accrued interest outstanding, accrued but uncollected interest at the date an account is placed on non-accrual status is reversed and charged against interest income. Subsequent interest received is applied to the outstanding principal balance until such time as the account is collected, charged-off or returned to accrual status. Loans that are on cash basis non-accrual do not accrue interest income; however, payments designated by the borrower as interest payments may be recorded as interest income. To qualify for this treatment, the remaining recorded investment in the loan must be deemed fully collectable. The recognition of interest income (including accretion) on consumer mortgages and small ticket Commercial Loans is suspended, and all previously accrued but uncollected revenue is reversed, when payment of principal and/or interest is contractually delinquent for 90 days or more. Accounts, including accounts that have been modified, are returned to accrual status when, in the opinion of management, collection of remaining principal and interest is reasonably assured, and there is a sustained period of repayment performance, generally for a minimum of six months. The Company periodically modifies the terms of loans in response to borrowers’ financial difficulties. These modifications may include interest rate changes, principal forgiveness or payment deferments. Loans that are modified, where a concession has been made to the borrower, are accounted for as Troubled Debt Restructurings (“TDRs”). TDRs are generally placed on non-accrual upon their restructuring and remain on non-accrual until, in the opinion of management, collection of remaining principal and interest is reasonably assured, and upon collection of six consecutive scheduled payments. PCI loans in pools that the Company may modify as TDRs are not within the scope of the accounting guidance for TDRs. Allowance for Loan Losses The allowance for loan losses ("ALLL") is intended to provide for credit losses inherent in the HFI loan portfolio and is periodically reviewed for adequacy. ALLL is determined based on three key components: (1) specific al |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | NOTE 2 — DISCONTINUED OPERATIONS There were no discontinued operations as of December 31, 2019. As of December 31, 2018, discontinued operations was comprised of Business Air and residual activity of the Financial Freedom business, which was sold in May 2018. As part of the Financial Freedom Transaction, the sale of the Financial Freedom business included all the operations, mortgage servicing rights and related servicing assets and liabilities. In July 2019, CIT obtained the final investor consent from Government National Mortgage Association (“GNMA”) to transfer CIT’s servicer obligation to a third party and derecognized the assets, which had previously not met the accounting requirements for sale treatment, and related secured borrowing of approximately $152 million from the Financial Freedom business. In addition, during 2019 we continued to sell our business aircraft. During the third quarter of 2019, the residual assets and liabilities, and related income statement activity, were reclassified to continuing operations. The following tables reflect the combined results of the discontinued operations. Condensed Combined Balance Sheet (dollars in millions) December 31, December 31, 2019 2018 Net loans $ - $ 248.1 Other assets - 1.7 Assets of discontinued operations $ - $ 249.8 Secured borrowings $ - $ 195.0 Other liabilities - 102.0 Liabilities of discontinued operations $ - $ 297.0 At December 31, 2018, the assets and liabilities primarily related to the failed sale assets and related secured borrowing for Financial Freedom of $195 million as the required investor consent was not received to qualify for sale treatment, although the economic benefit and risk of the business had been transferred to the buyer. The remaining assets primarily related to Business Air loans and other liabilities of $102 million, which included the indemnification contingent liability and mortgage servicing liability of Financial Freedom and other liabilities of Business Air. Condensed Combined Statement of Income (dollars in millions) Years Ended December 31, 2019 2018 2017 Interest income $ 3.4 $ 14.6 $ 39.5 Interest expense 2.8 10.5 109.1 Rental income on operating leases - 0.5 312.5 Other income 3.0 19.9 (13.9 ) Maintenance and other operating lease expenses - - 4.2 Operating expenses 2.9 35.7 30.0 Loss on debt extinguishment - - 39.0 Income (loss) from discontinued operations before provision (benefit) for income taxes 0.7 (11.2 ) 155.8 Provision (benefit) for income taxes 0.2 (2.5 ) 65.6 Income (loss) on sale of discontinued operation, net of taxes - (16.3 ) 118.6 Income (loss) from discontinued operations, net of taxes $ 0.5 $ (25.0 ) $ 208.8 There was no discontinued operations income statement activity after the second quarter of 2019. The loss, net of taxes, of $25 million for the year ended December 31, 2018 was primarily due to the $16 million net loss on sale of the Financial Freedom business and operating expenses of $33 million. Income from the discontinued operations for the year ended December 31, 2017 was driven primarily by revenues on leased aircraft in the first quarter and the gain on sale of Commercial Air in April. The interest expense included amounts allocated to the businesses and on secured debt. Operating expenses included in discontinued operations consisted of direct expenses of the Commercial Air and Business Air businesses that were separate from ongoing CIT operations. Condensed Combined Statement of Cash Flows (dollars in millions) Years Ended December 31, 2019 2018 2017 Net cash flows (used in) provided by operations $ (4.4 ) $ 7.2 $ (5.0 ) Net cash flows provided by investing activities 54.9 148.7 10,391.7 |
Loans
Loans | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
LOANS | NOTE 3 — LOANS Loans, excluding those reflected as discontinued operations, consist of the following. Unless otherwise noted, loans held for sale are not included. Prior period balances have been conformed to the current presentation. Loans by Product (dollars in millions) December 31, 2019 December 31, 2018 Commercial loans $ 22,765.1 $ 22,285.7 Financing leases and leveraged leases 2,254.4 2,489.4 Total commercial 25,019.5 24,775.1 Consumer loans 5,979.4 6,020.3 Total loans $ 30,998.9 $ 30,795.4 The following table presents loans by segment, based on obligor location: Loans (dollars in millions) December 31, 2019 December 31, 2018 Domestic Foreign Total Domestic Foreign Total Commercial Banking $ 22,866.0 $ 1,527.4 $ 24,393.4 $ 22,732.8 $ 1,530.6 $ 24,263.4 Consumer Banking (1) 6,605.5 - 6,605.5 6,532.0 - 6,532.0 Total $ 29,471.5 $ 1,527.4 $ 30,998.9 $ 29,264.8 $ 1,530.6 $ 30,795.4 (1) The following table presents selected components of the net investment in loans: Components of Net Investment in Loans (dollars in millions) December 31, December 31, 2019 2018 Unearned income (1) $ (430.0 ) $ (778.8 ) Unamortized premiums / (discounts) 30.0 20.6 Accretable yield on PCI loans (745.4 ) (903.8 ) Net unamortized deferred costs and (fees) (1) 50.9 85.7 (1) Certain of the following tables present credit-related information at the “class” level. A class is generally a disaggregation of a portfolio segment. In determining the classes, CIT considered the loan characteristics and methods it applies in monitoring and assessing credit risk and performance. Credit Quality Information Commercial obligor risk ratings are reviewed on a regular basis by Credit Risk Management and are adjusted as necessary for updated information affecting the borrowers' ability to fulfill their obligations. The definitions of the commercial loan ratings are as follows: • Pass — loans in this category do not meet the criteria for classification in one of the categories below. • Special mention — a special mention asset exhibits potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects. • Classified — a classified asset ranges from: (1) assets that exhibit a well-defined weakness and are inadequately protected by the current sound worth and paying capacity of the borrower and are characterized by the distinct possibility that some loss will be sustained if the deficiencies are not corrected to (2) assets with weaknesses that make collection or liquidation in full unlikely on the basis of current facts, conditions, and values. Assets in this classification can be accruing or on non- accrual depending on the evaluation of these factors. The following table summarizes commercial loans by the risk ratings that bank regulatory agencies utilize to classify credit exposure and which are consistent with indicators the Company monitors. The consumer loan risk profiles are different from commercial loans and use loan-to-value (“LTV”) ratios in rating the credit quality, and therefore are presented separately below. Commercial Loans— Risk Rating by Class / Segment (dollars in millions) Grade: Pass Special Mention Classified- accrual Classified- non-accrual PCI Loans (2) Total December 31, 2019 Commercial Banking Commercial Finance (1) $ 12,601.1 $ 450.7 $ 614.3 $ 246.7 $ — $ 13,912.8 Real Estate Finance 5,007.0 341.0 6.3 0.4 27.8 5,382.5 Business Capital (1) 4,527.5 233.1 217.0 60.9 — 5,038.5 Rail 59.6 — — — — 59.6 Total Commercial Banking 22,195.2 1,024.8 837.6 308.0 27.8 24,393.4 Consumer Banking Consumer and Community Banking - Primarily SBA Loans 589.6 2.4 33.9 0.2 — 626.1 Total Consumer Banking 589.6 2.4 33.9 0.2 — 626.1 Total $ 22,784.8 $ 1,027.2 $ 871.5 $ 308.2 $ 27.8 $ 25,019.5 December 31, 2018 Commercial Banking Commercial Finance (1) $ 11,744.4 $ 801.2 $ 1,212.0 $ 195.8 $ 4.7 $ 13,958.1 Real Estate Finance 4,977.4 162.3 225.6 2.2 32.2 5,399.7 Business Capital (1) 4,433.3 164.9 183.8 39.9 — 4,821.9 Rail 82.6 0.5 0.6 — — 83.7 Total Commercial Banking 21,237.7 1,128.9 1,622.0 237.9 36.9 24,263.4 Consumer Banking Consumer and Community Banking - Primarily SBA Loans 446.4 7.1 56.0 0.4 1.8 511.7 Total Consumer Banking 446.4 7.1 56.0 0.4 1.8 511.7 Total $ 21,684.1 $ 1,136.0 $ 1,678.0 $ 238.3 $ 38.7 $ 24,775.1 (1) (2) The following table provides a summary of the consumer loan LTV distribution and the covered loans held for investment balances for single-family residential (“SFR”) mortgage loans. The average LTV for the Total Consumer Loans included below at December 31, 2019 and 2018, were 63% and 64%, respectively. Consumer Loans LTV Distribution (dollars in millions) Covered Loans (2) Non-covered Loans Total Consumer LTV Range Non-PCI PCI Non-PCI PCI Loans December 31, 2019 Greater than 125% $ — $ 2.8 $ 5.2 $ 53.2 $ 61.2 101% – 125% — 8.5 6.6 93.0 108.1 80% – 100% 0.3 48.1 183.4 239.3 471.1 Less than 80% 307.5 234.3 4,225.5 570.6 5,337.9 Not Applicable (1) — — 1.1 — 1.1 Total $ 307.8 $ 293.7 $ 4,421.8 $ 956.1 $ 5,979.4 December 31, 2018 Greater than 125% $ 1.3 $ 105.6 $ 4.9 $ — $ 111.8 101% – 125% 5.3 186.1 4.7 — 196.1 80% – 100% 27.3 446.8 220.3 — 694.4 Less than 80% 1,068.5 916.0 3,032.6 — 5,017.1 Not Applicable (1) — — 0.9 — 0.9 Total $ 1,102.4 $ 1,654.5 $ 3,263.4 $ — $ 6,020.3 (1) (2) The SFR amounts represent the carrying value, which differ from unpaid principal balances, and include the premiums or discounts and the accretable yield and non-accretable difference for PCI loans recorded in purchase accounting. Certain consumer SFR loans are “covered loans” for which the Company can be reimbursed for a portion of certain future losses. Covered loans relate to loans acquired from the OneWest Bank acquisition with indemnifications provided by the FDIC under LSAs for certain future losses. The LSAs with the FDIC relate to the FDIC-assisted transactions of IndyMac in March 2009, First Federal in December 2009 and La Jolla Bank in February 2010. The indemnification period for IndyMac ended in March 2019. Post March 2019, the covered loans are limited to First Federal and La Jolla with the indemnification period ending in December 2019 and February 2020, respectively. No indemnification asset was recognized in connection with First Federal and La Jolla. The Company separately recognizes a net receivable (recorded in other assets) for the claim submissions filed with the FDIC. At December 31, 2019, the indemnification asset is zero, as compared to $10.8 million at December 31, 2018 and there was a net receivable from the FDIC of zero and $6.4 million, respectively. Apart from the loss share reimbursements from the FDIC, the decline in the indemnification asset during 2018 reflects the reduction in the indemnification receivable from the FDIC related to covered servicer-related obligations for reverse mortgages from $29 million to zero, an impairment charge of $21 million and amortization of $40 million. During the year ended December 31, 2018, CIT performed a collectability assessment of the probable losses to be reimbursed by the FDIC given the significantly shorter remaining life of the indemnification asset in comparison to the weighted average life of the related covered loans and significant decline in loss share claims filed with the FDIC. Separate from the higher negative yield to amortize the reductions in expected indemnification asset cash flows due to an increase in expected cash flows on the covered loans from improved credit performance, CIT recorded an impairment of $21 million in other noninterest income for the amounts deemed uncollectable within the remaining indemnification period based on CIT’s loan level review of the covered loans. As of December 31, 2019, there was no remaining amount of negative amortization contractually permitted on consumer loans with terms that permitted negative amortization. Past Due and Non-accrual Loans The table that follows presents portfolio delinquency status, regardless of accrual/non-accrual classification: Loans - Delinquency Status (dollars in millions) Past Due Total 30-59 60-89 90 or more Past Due Current PCI Loans (2) Total December 31, 2019 Commercial Banking Commercial Finance (1) $ 58.7 $ 27.8 $ 49.0 $ 135.5 $ 13,777.3 $ — $ 13,912.8 Real Estate Finance 0.6 46.6 — 47.2 5,307.5 27.8 5,382.5 Business Capital (1) 113.8 35.0 22.0 170.8 4,867.7 — 5,038.5 Rail — — — — 59.6 — 59.6 Total Commercial Banking 173.1 109.4 71.0 353.5 24,012.1 27.8 24,393.4 Consumer Banking Legacy Consumer Mortgage 15.5 3.3 17.7 36.5 795.2 1,249.8 2,081.5 Consumer and Community Banking 16.4 3.3 7.6 27.3 4,496.7 — 4,524.0 Total Consumer Banking 31.9 6.6 25.3 63.8 5,291.9 1,249.8 6,605.5 Total $ 205.0 $ 116.0 $ 96.3 $ 417.3 $ 29,304.0 $ 1,277.6 $ 30,998.9 December 31, 2018 Commercial Banking Commercial Finance (1) $ 55.6 $ 0.4 $ 72.8 $ 128.8 $ 13,824.6 $ 4.7 $ 13,958.1 Real Estate Finance 8.9 12.0 5.1 26.0 5,341.5 32.2 5,399.7 Business Capital (1) 91.1 35.0 15.0 141.1 4,680.8 — 4,821.9 Rail 2.8 0.9 1.5 5.2 78.5 — 83.7 Total Commercial Banking 158.4 48.3 94.4 301.1 23,925.4 36.9 24,263.4 Consumer Banking Legacy Consumer Mortgage 25.9 5.9 37.6 69.4 1,063.6 1,654.5 2,787.5 Consumer and Community Banking 25.3 3.0 2.1 30.4 3,712.3 1.8 3,744.5 Total Consumer Banking 51.2 8.9 39.7 99.8 4,775.9 1,656.3 6,532.0 Total $ 209.6 $ 57.2 $ 134.1 $ 400.9 $ 28,701.3 $ 1,693.2 $ 30,795.4 (1) In the fourth quarter of 2019, we modified our reporting at the business level. Commercial Services and an equipment financing portfolio consisting mostly of leases were transferred from Business Capital to Commercial Finance. Prior period numbers have been conformed to the current period presentation. (2) Non-accrual loans include loans that are individually evaluated and determined to be impaired (generally loans with balances $500,000 or greater), as well as other, smaller balance loans placed on non-accrual due to delinquency (generally 90 days or more). Certain loans 90 days or more past due as to interest or principal are still accruing, because they are well-secured and in the process of collection. The following table sets forth non-accrual loans, assets received in satisfaction of loans (OREO and repossessed assets) and loans 90 days or more past due and still accruing. Loans on Non-Accrual Status (dollars in millions) (1) December 31, 2019 December 31, 2018 Held for Investment Held for Sale Total Held for Investment Held for Sale Total Commercial Banking Commercial Finance (2) $ 246.7 $ — $ 246.7 $ 195.8 $ — $ 195.8 Business Capital (2) 60.9 — 60.9 39.9 — 39.9 Real Estate Finance 0.4 — 0.4 2.2 — 2.2 Total Commercial Banking 308.0 — 308.0 237.9 — 237.9 Consumer Banking Consumer and Community Banking 4.0 — 4.0 6.1 — 6.1 Legacy Consumer Mortgages 13.3 1.0 14.3 32.2 — 32.2 Total Consumer Banking 17.3 1.0 18.3 38.3 — 38.3 Corporate (2) — — — — 6.1 6.1 Total $ 325.3 $ 1.0 $ 326.3 $ 276.2 $ 6.1 $ 282.3 Repossessed assets and OREO 20.1 33.0 Total non-performing assets $ 346.4 $ 315.3 Commercial loans past due 90 days or more accruing $ 25.6 $ 21.9 Consumer loans past due 90 days or more accruing 11.3 13.7 Total accruing loans past due 90 days or more $ 36.9 $ 35.6 (1) (2) Payments received on non-accrual loans are generally applied first against outstanding principal, though in certain instances where the remaining recorded investment is deemed fully collectible, interest income is recognized on a cash basis. The table below summarizes the residential mortgage loans in the process of foreclosure and OREO: Loans in Process of Foreclosure and OREO (1) (dollars in millions) 2019 2018 PCI $ 25.4 $ 122.6 Non-PCI 13.5 24.1 Loans in process of foreclosure $ 38.9 $ 146.7 OREO $ 17.7 $ 32.0 (1) Impaired Loans The following table contains information about impaired loans and the related allowance for loan losses by class. Impaired loans exclude PCI loans. Loans that were identified as impaired at the date of the OneWest Transaction (the “Acquisition Date”) for which the Company is applying the income recognition and disclosure guidance in ASC 310-30 ( Loans and Debt Securities Acquired with Deteriorated Credit Quality Loans Acquired with Deteriorated Credit Quality Impaired Loans (dollars in millions) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment (2) December 31, 2019 With no related allowance recorded: Commercial Banking Commercial Finance (3) $ 46.5 $ 69.0 $ — $ 68.0 Business Capital (3) 4.8 5.5 — 6.0 Real Estate Finance — — — 1.6 Consumer Banking Consumer and Community Banking 4.0 4.0 — 4.9 LCM 20.6 22.4 — 24.7 With an allowance recorded: Commercial Banking Commercial Finance (3) 223.9 267.3 86.0 166.6 Business Capital (3) 19.4 19.4 10.0 11.6 Real Estate Finance — — — 0.8 Consumer Banking Consumer and Community Banking 0.1 0.2 — — LCM 1.4 1.4 0.2 0.4 Total Impaired Loans (1) 320.7 389.2 96.2 284.6 Total Loans Impaired at Acquisition Date 1,277.6 1,936.1 17.4 1,504.4 Total $ 1,598.3 $ 2,325.3 $ 113.6 $ 1,789.0 December 31, 2018 With no related allowance recorded: Commercial Banking Commercial Finance (3) $ 89.4 $ 112.1 $ — $ 70.7 Business Capital (3) 7.1 9.5 — 9.4 Real Estate Finance 2.3 2.3 — 1.4 Consumer Banking Consumer and Community Banking 4.4 4.4 — 1.8 LCM 31.5 34.8 — 26.4 With an allowance recorded: Commercial Banking Commercial Finance (3) 109.2 128.2 46.4 107.8 Business Capital (3) 3.8 3.8 1.0 1.9 Real Estate Finance — — — 0.5 Consumer Banking Consumer and Community Banking — — — 0.1 Total Impaired Loans (1) 247.7 295.1 47.4 220.0 Total Loans Impaired at Acquisition Date 1,693.2 2,489.9 18.4 1,829.2 Total $ 1,940.9 $ 2,785.0 $ 65.8 $ 2,049.2 (1) ( 2 ) (3) Impairment occurs when, based on current information and events, it is probable that CIT will be unable to collect all amounts due according to contractual terms of the agreement. For commercial loans, the Company has established review and monitoring procedures designed to identify, as early as possible, customers that are experiencing financial difficulty. Credit risk is captured and analyzed based on the Company's PD and LGD ratings. A PD rating is determined by evaluating borrower credit-worthiness, including analyzing credit history, financial condition, cash flow adequacy, financial performance and management quality. An LGD rating is predicated on transaction structure, collateral valuation and related guarantees or recourse. Further, related considerations in determining probability of collection include the following: • Instances where the primary source of payment is no longer sufficient to repay the loan in accordance with the terms of the loan document; • Lack of current financial data related to the borrower or guarantor; • Delinquency status of the loan; • Borrowers experiencing problems, such as operating losses, marginal working capital, inadequate cash flow, excessive financial leverage or business interruptions; • Loans secured by collateral that is not readily marketable or that has experienced or is susceptible to deterioration in realizable value; and • Loans to borrowers in industries or countries experiencing severe economic instability. A shortfall between the estimated value and recorded investment in the loan is reported in the provision for credit losses. In instances when the Company measures impairment based on the present value of expected future cash flows, the change in present value is reported in the provision for credit losses. The following summarizes key elements of the Company's policy regarding the determination of collateral fair value in the measurement of impairment: • "Orderly liquidation value" is the basis for collateral valuation; • Appraisals are updated annually or more often as market conditions warrant; and • Appraisal values are discounted in the determination of impairment if the: • appraisal does not reflect current market conditions; or • collateral consists of inventory, accounts receivable, or other forms of collateral that may become difficult to locate or collect or may be subject to pilferage in a liquidation. Loans Acquired with Deteriorated Credit Quality The Company applied the income recognition and disclosure guidance in ASC 310-30 to loans that were identified as PCI as of the Acquisition Date. PCI loans were initially recorded at estimated fair value with no allowance for loan losses carried over, since the initial fair values reflected credit losses expected to be incurred over the remaining lives of the loans. The acquired loans are subject to the Company’s internal credit review. See Note 4 — Allowance for Loan Losses Purchased Credit Impaired Loans (dollars in millions) December 31, 2019 Carrying Value Unpaid Principal Balance Allowance for Loan Losses Commercial Banking Real Estate Finance $ 27.8 $ 30.4 $ 9.8 Consumer Banking Legacy Consumer Mortgages 1,249.8 1,905.7 7.6 $ 1,277.6 $ 1,936.1 $ 17.4 December 31, 2018 Commercial Banking Commercial Finance $ 4.7 $ 9.0 $ 0.4 Real Estate Finance 32.2 37.7 8.8 Consumer Banking Consumer and Community Banking 1.8 2.3 — Legacy Consumer Mortgages 1,654.5 2,440.9 9.2 $ 1,693.2 $ 2,489.9 $ 18.4 The following table summarizes the carrying value of commercial PCI loans, which are monitored for credit quality based on internal risk classifications. See previous table Consumer Loan LTV Distribution for credit quality metrics on consumer PCI loans. Carrying Value of Commercial PCI Loans (dollars in millions) December 31, 2019 December 31, 2018 Non- criticized Criticized Total Non- criticized Criticized Total Commercial Finance $ — $ — $ — $ — $ 4.7 $ 4.7 Real Estate Finance 20.7 7.1 27.8 14.6 17.6 32.2 Total $ 20.7 $ 7.1 $ 27.8 $ 14.6 $ 22.3 $ 36.9 Non-criticized loans generally include loans that are expected to be repaid in accordance with contractual loan terms. Criticized loans are risk rated as special mention or classified. Accretable Yield The excess of cash flows expected to be collected over the recorded investment (estimated fair value at acquisition) of the PCI loans represents the accretable yield and is recognized in interest income on an effective yield basis over the remaining life of the loan, or pools of loans. The accretable yield is adjusted for changes in interest rate indices for variable rate PCI loans, changes in prepayment assumptions and changes in expected principal and interest payments and collateral values. Further, if a loan within a pool of loans is modified, the modified loan remains part of the pool of loans. Changes in the accretable yield for PCI loans are summarized below. Change in Accretable Yield (dollars in millions) Years Ended December 31, 2019 2018 2017 Balance, beginning of period $ 903.8 $ 1,063.7 $ 1,261.4 Accretion into interest income (146.9 ) (167.5 ) (204.6 ) Reclassification from non-accretable difference 19.2 17.8 38.5 Disposals and Other (30.7 ) (10.2 ) (31.6 ) Balance, end of period $ 745.4 $ 903.8 $ 1,063.7 Troubled Debt Restructuring The Company periodically modifies the terms of loans in response to borrowers’ difficulties. Modifications that include a financial concession to the borrower are accounted for as TDRs. A restructuring of a debt constitutes a TDR for purposes of ASC 310-40, if CIT, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. A concession either stems from an agreement between CIT and the debtor or is imposed by law or a court of law. One key indicator of a concession is the lender granting a term or condition that it would not ordinarily consider, such as accepting assets other than cash in partial settlement of the obligation. Another key indicator of a concession is the lender agreeing to a term or condition that is below market, such as lowering the interest rate or agreeing to convert scheduled cash pay interest to Payment in Kind (“PIK”).” A TDR may include, but is not limited to, one or a combination of the following: • Transfer from the debtor to the creditor of receivables from third parties, real estate, or other assets to satisfy a debt in full or in part. This includes a transfer resulting from foreclosure or repossession. • Issuance or other granting of an equity interest by the debtor to the creditor as partial repayment of the debt, unless the equity interest is granted pursuant to existing terms for converting the debt into an equity interest. • Modification of the terms of a debt, such as one or a combination of the following: o Reduction (absolute or contingent) of the stated interest rate for the remaining original life of the debt, o Reduction (absolute or contingent) of the face amount or maturity extension of the debt, o Reduction (absolute or contingent) of accrued interest, or o Deferral of payments. Modified loans that meet the definition of a TDR are subject to the Company's impaired loan policy. The following table presents the recorded investment of TDRs, excluding those within a trial modification period of $5.5 million, $4.2 million and $12.5 million as of December 31, 2019, 2018 and 2017: TDRs (dollars in millions) December 31, 2019 December 31, 2018 December 31, 2017 Recorded Investment % Total TDR Recorded Investment % Total TDR Recorded Investment % Total TDR Commercial Banking $ 129.5 87 % $ 70.4 80 % $ 86.2 84 % Consumer Banking 19.3 13 % 17.2 20 % 16.9 16 % Total $ 148.8 100 % $ 87.6 100 % $ 103.1 100 % Percent non-accrual 71 % 79 % 63 % Modifications (dollars in millions) Years Ended 2019 2018 2017 Recorded investment related to modifications qualifying as TDRs that occurred during the years $ 89.9 $ 69.0 $ 92.5 Recorded investment at the time of default of TDRs that experienced a payment default (payment default is one missed payment) during the years and for which the payment default occurred within one year of the modification $ 23.2 $ 21.8 $ 41.1 There were $23.6 million and $6.1 million as of December 31, 2019 and December 31, 2018, respectively, of commitments to lend additional funds to borrowers whose loan terms have been modified in TDRs. The financial impact of the various modification strategies that the Company employs in response to borrower difficulties is presented below. Although the focus is on the December 31, 2019 amounts, the overall nature and impact of modification programs were comparable in the prior year. Modifications qualifying as TDRs based upon recorded investment at December 31, 2019 were comprised of payment deferrals (52%) and covenant relief and/or other (48%). At December 31, 2018, TDR recorded investment was comprised of payment deferrals (51%) and covenant relief and/or other (49%). • Payment deferrals result in lower net present value of cash flows, if not accompanied by additional interest or fees, and increased provision for credit losses to the extent applicable. The financial impact of these modifications is not significant given the moderate length of deferral periods. • Interest rate reductions result in lower amounts of interest being charged to the customer but are a relatively small part of the Company’s restructuring programs. The weighted average change in interest rates for all TDRs occurring during the years ended December 31, 2019 and 2018 was not significant. • Debt forgiveness, or the reduction in amount owed by borrower, results in incremental provision for credit losses, in the form of higher charge-offs. While these types of modifications have the greatest individual impact on the allowance, the amounts of principal forgiveness for TDRs occurring during years ended December 31, 2019 and 2018 was not significant, as debt forgiveness is a relatively small component of the Company’s modification programs. • The other elements of the Company’s modification programs that are not TDRs, do not have a significant impact on financial results given their relative size, or do not have a direct financial impact, as in the case of covenant changes. |
Allowance For Loan Losses
Allowance For Loan Losses | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
ALLOWANCE FOR LOAN LOSSES | NOTE 4 — ALLOWANCE FOR LOAN LOSSES The Company maintains an ALLL for estimated credit losses in its HFI loan portfolio. See Note 1 – Business and Summary of Significant Accounting Policies Allowance for Loan Losses and Recorded Investment in Loans (dollars in millions) Commercial Banking Consumer Banking Total Year Ended December 31, 2019 Balance - beginning of period $ 460.2 $ 29.5 $ 489.7 Provision (benefit) for credit losses 117.3 (6.5 ) 110.8 Other (1) 5.0 (0.6 ) 4.4 Gross charge-offs (151.2 ) (2.7 ) (153.9 ) Recoveries 29.1 2.5 31.6 Balance - end of period $ 460.4 $ 22.2 $ 482.6 Allowance Balance at December 31, 2019 Loans individually evaluated for impairment $ 96.0 $ 0.2 $ 96.2 Loans collectively evaluated for impairment 354.6 14.4 369.0 Loans acquired with deteriorated credit quality (2) 9.8 7.6 17.4 Allowance for loan losses 460.4 22.2 482.6 Other reserves (1) $ 36.4 $ 0.7 $ 37.1 Loans at December 31, 2019 Loans individually evaluated for impairment $ 294.6 $ 26.1 $ 320.7 Loans collectively evaluated for impairment 24,071.0 5,329.6 29,400.6 Loans acquired with deteriorated credit quality (2) 27.8 1,249.8 1,277.6 Ending balance $ 24,393.4 $ 6,605.5 $ 30,998.9 Percent of loans to total loans 78.7 % 21.3 % 100.0 % Year Ended December 31, 2018 Balance - beginning of period $ 402.2 $ 28.9 $ 431.1 Provision for credit losses 167.1 3.9 171.0 Other (1) 3.0 - 3.0 Gross charge-offs (138.7 ) (4.1 ) (142.8 ) Recoveries 26.6 0.8 27.4 Balance - end of period $ 460.2 $ 29.5 $ 489.7 Allowance Balance at December 31, 2018 Loans individually evaluated for impairment $ 47.4 $ - $ 47.4 Loans collectively evaluated for impairment 403.6 20.3 423.9 Loans acquired with deteriorated credit quality (2) 9.2 9.2 18.4 Allowance for loan losses 460.2 29.5 489.7 Other reserves (1) $ 41.4 $ 0.1 $ 41.5 Loans at December 31, 2018 Loans individually evaluated for impairment $ 211.8 $ 35.9 $ 247.7 Loans collectively evaluated for impairment 24,014.7 4,839.8 28,854.5 Loans acquired with deteriorated credit quality (2) 36.9 1,656.3 1,693.2 Ending balance $ 24,263.4 $ 6,532.0 $ 30,795.4 Percent of loans to total loans 78.8 % 21.2 % 100.0 % (1) (2) |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | NOTE 5 Lessee CIT leases primarily include office space and bank branches; and substantially all of our lease liabilities relate to United States real estate leases under operating lease arrangements. Our lessee finance leases are not significant. Our real estate leases have remaining lease terms of up to 14 years. Our lease terms may include options to extend or terminate the lease. The options are included in the lease term when it is determined that it is reasonably certain the option will be exercised. The following tables present supplemental balance sheet and cash flow information related to operating leases. ROU assets are included in Other assets and lease liabilities are included in Other liabilities. Supplemental Lease Balance Sheet Information (dollars in millions) December 31, 2019 ROU assets $ 194.9 Lease liabilities 242.6 Weighted-average remaining lease terms 9 Years Weighted-average discount rate 4.77 % Supplemental Cash Flow Information (dollars in millions): Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities $ 45.8 ROU assets obtained in exchange for new lease liabilities $ 18.0 The following table presents maturities of lease liabilities: Maturity of Lease Liabilities (dollars in millions) Years Ended December 31, 2020 $ 47.1 2021 35.0 2022 28.4 2023 28.0 2024 27.7 Thereafter 143.0 Total undiscounted lease payments 309.2 Difference between undiscounted cash flows and discounted cash flows (66.6 ) Lease liabilities, at present value $ 242.6 In addition to the table above, we have future operating lease commitments of $108 million (undiscounted) for a 15-year lease of office space in Morristown, NJ which was signed in September 2019. The estimated commencement date for this lease is late 2020 and the office space will be primarily occupied by corporate functional staff. The following table presents components of operating lease expense, which are included in operating expenses: Components of Operating Lease Expense (dollars in millions) Year Ended December 31, 2019 Operating lease cost (1) $ 43.1 Variable lease cost 10.6 Sublease income (14.9 ) Total operating lease expense $ 38.8 (1) The components of lease expense are recorded in Operating expenses. Variable lease cost includes common area maintenance, property taxes, and other operating expenses related to leased premises. Sublease income results from leasing excess building space that CIT is no longer utilizing under operating leases which have remaining lease terms of up to 2 years. Lessor The Company leases equipment to commercial end-users under operating lease and finance lease arrangements. The majority of operating lease equipment is long-lived rail equipment which is typically leased several times over the equipment’s life. We also lease technology and office equipment and large and small industrial, medical, and transportation equipment under both operating leases and finance leases. Our Rail operating leases typically do not include purchase options. Many of our finance leases, and other equipment operating leases, offer the lessee the option to purchase the equipment at fair market value or for a nominal fixed purchase option; and many of the leases that do not have a nominal purchase option include renewal provisions resulting in some leases continuing beyond initial contractual term. Our leases typically do not include early termination options; and continued rent payments are due if leased equipment is not returned at the end of the lease. The following table provides the net book value of operating lease equipment (net of accumulated depreciation of $1.4 billion at December 31, 2019 and $1.2 billion at December 31, 2018), by equipment type. Operating Lease Equipment (dollars in millions) December 31, December 31, 2019 2018 Railcars and locomotives $ 6,706.0 $ 6,420.7 Other equipment 613.7 549.9 Total (1) $ 7,319.7 $ 6,970.6 (1) The following table presents Components of Net Investment in Finance Leases (dollars in millions) December 31, 2019 Lease receivables $ 1,905.3 Unguaranteed residual assets 309.4 Total net investment in finance leases 2,214.7 Leveraged lease net investment (1) 39.7 Total $ 2,254.4 (1) leases The table that follows Lease Income (dollars in millions) Year Ended December 31, 2019 Lease income – Operating leases $ 800.8 Variable lease income – Operating leases (1) 56.9 Rental income on operating leases 857.7 Interest income - Sales type and direct financing leases 194.0 Variable lease income included in Other non-interest income (2) 46.0 Leveraged lease income 8.8 Total lease income $ 1,106.5 (1) (2) The following tables present lease payments due on non-cancellable operating leases and lease receivables due on finance leases at December 31, 2019. Excluded from these tables are variable lease payments, including rentals calculated based on asset usage levels, rentals from future renewal and re-leasing activity, and expected sales proceeds from remarketing equipment Maturity Analysis of Operating Lease Payments (dollars in millions) Years Ended December 31, 2020 $ 644.5 2021 478.1 2022 325.1 2023 193.7 2024 102.8 Thereafter 69.3 Total $ 1,813.5 Maturity Analysis of Lease Receivables - Sales Type and Direct Financing Leases (dollars in millions) Years Ended December 31, 2020 $ 832.2 2021 605.3 2022 383.4 2023 209.4 2024 76.6 Thereafter 31.4 Total undiscounted cash flows 2,138.3 Difference between undiscounted cash flows and discounted cash flows 233.0 Lease receivables, at present value $ 1,905.3 |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
INVESTMENT SECURITIES | NOTE 6 — INVESTMENT SECURITIES Investments include debt and equity securities. Investment Securities (dollars in millions) December 31, December 31, 2019 2018 AFS Securities Debt securities $ 6,011.8 $ 5,931.3 Securities carried at FV with changes in net income Equity securities 47.2 44.6 Non-marketable securities (1) 217.8 257.9 Total investment securities $ 6,276.8 $ 6,233.8 ( 1 ) Non-marketable investments include restricted stock of the FRB and FHLB carried at cost of $187.9 million at December 31, 2019 and $242.5 million at December 31, 2018. The remaining non-marketable investments without readily determinable fair values measured under the measurement exception totaled $29.9 million at December 31, 2019 and $15.4 million at December 31, 2018. Realized investment gains totaled $4.8 million, $16.5 million and $30.0 million for the years ended December 31, 2019, 2018 and 2017, respectively, and exclude losses from OTTI. The Company had $1.7 billion and $1.6 billion of interest-bearing cash at banks at December 31, 2019 and December 31, 2018, respectively, which are cash and cash equivalents and are classified separately on the balance sheet. The following table presents interest and dividends on investments and interest-bearing cash: Interest and Dividend Income (dollars in millions) Years Ended December 31, 2019 2018 2017 Interest income – debt securities (1) $ 187.9 $ 163.1 $ 128.9 Interest income – interest-bearing cash 37.1 42.3 57.7 Dividends – equity securities 8.5 13.2 10.9 Total interest and dividends $ 233.5 $ 218.6 $ 197.5 (1) Includes interest income on securities purchased under agreement to resell The following table presents amortized cost and fair value of securities AFS. Amortized Cost and Fair Value (dollars in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2019 Debt securities AFS Mortgage-backed securities U.S. government/sponsored agency – Residential $ 4,766.4 $ 24.1 $ (16.7 ) 4,773.8 U.S. government/sponsored agency – Commercial 554.5 12.1 (1.8 ) 564.8 U.S. government/sponsored agency obligations 449.4 — (5.4 ) 444.0 U.S. Treasury securities 11.2 0.1 — 11.3 Supranational securities 149.8 — — 149.8 State & municipal bonds 1.0 — — 1.0 Corporate bonds – foreign 65.9 1.2 — 67.1 Total debt securities AFS $ 5,998.2 $ 37.5 $ (23.9 ) $ 6,011.8 December 31, 2018 Debt securities AFS Mortgage-backed securities U.S. government/sponsored agency – Residential $ 5,341.2 $ 6.7 $ (122.7 ) $ 5,225.2 U.S. government/sponsored agency – Commercial 291.8 3.2 (0.4 ) 294.6 U.S. government/sponsored agency obligations 34.9 — (0.4 ) 34.5 U.S. Treasury securities 253.9 — (2.4 ) 251.5 Supranational securities 50.0 — (0.6 ) 49.4 State & municipal bonds 10.9 — (0.7 ) 10.2 Corporate bonds – foreign 65.8 0.1 — 65.9 Total debt securities AFS $ 6,048.5 $ 10.0 $ (127.2 ) $ 5,931.3 The following table presents the debt securities AFS by contractual maturity dates: Maturities - (dollars in millions) December 31, 2019 Amortized Cost Fair Value Weighted Average Yield Mortgage-backed securities — U.S. government/sponsored agency – Residential After 5 through 10 years $ 0.1 $ 0.1 7.10 % Due after 10 years 4,766.3 4,773.7 2.63 % Total 4,766.4 4,773.8 2.63 % Mortgage-backed securities — U.S. government/sponsored agency – Commercial After 1 through 5 years 12.1 12.3 3.11 % After 5 through 10 years 458.8 470.1 2.79 % Due after 10 years 83.6 82.4 2.25 % Total 554.5 564.8 2.71 % U.S. government/sponsored agency obligations After 1 through 5 years 24.9 24.9 2.43 % After 5 through 10 years 154.2 152.6 2.70 % Due after 10 years 270.3 266.5 2.82 % Total 449.4 444.0 2.75 % U.S. Treasury securities Due in 1 year or less 9.0 9.0 1.99 % After 1 through 5 years 0.2 0.2 1.63 % After 5 through 10 years 2.0 2.1 2.60 % Total 11.2 11.3 2.09 % Supranational securities Due in 1 year or less 149.8 149.8 1.56 % Total 149.8 149.8 1.56 % State & municipal bonds Due after 10 years 1.0 1.0 2.26 % Total 1.0 1.0 2.26 % Corporate bonds — foreign Due in 1 year or less 65.9 67.1 6.09 % Total 65.9 67.1 6.09 % Total debt securities AFS $ 5,998.2 $ 6,011.8 2.66 % At December 31, 2019 and December 31, 2018, certain securities AFS were in unrealized loss positions. The following tables summarize by investment category the gross unrealized losses, respective fair value and length of time that those securities have been in a continuous unrealized loss position. Gross Unrealized Loss (dollars in millions) December 31, 2019 Less than 12 months 12 months or greater Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Debt securities AFS Mortgage-backed securities U.S. government/sponsored agency – Residential $ 1,396.5 $ (4.6 ) $ 861.3 $ (12.1 ) U.S. government/sponsored agency – Commercial 282.7 (1.7 ) 17.6 (0.1 ) U.S. government/sponsored agency obligations 398.9 (5.4 ) — — Total debt securities AFS $ 2,078.1 $ (11.7 ) $ 878.9 $ (12.2 ) December 31, 2018 Debt securities AFS Mortgage-backed securities U.S. government/sponsored agency – Residential $ 582.1 $ (7.4 ) $ 3,842.7 $ (115.3 ) U.S. government/sponsored agency – Commercial 102.6 (0.4 ) — — U.S. government/sponsored agency obligations — — 24.6 (0.4 ) U.S. Treasury securities 247.5 (2.4 ) — — State & municipal bonds — — 8.1 (0.7 ) Supranational securities — — 49.4 (0.6 ) Total debt securities AFS $ 932.2 $ (10.2 ) $ 3,924.8 $ (117.0 ) Purchased Credit-Impaired AFS Securities As of December 31, 2019 and December 31, 2018, there was no balance in PCI securities. For the years ended December 31, 2018 and December 31, 2017, the accretable yield on PCI securities had a beginning balance of $101.7 million and $165.0 million, respectively. Adjustments to accretable yield primarily included accretion into interest income of $7.8 million and $23.4 million and disposals of $93.0 million and $40.1 million for the years ended December 31, 2018 and December 31, 2017, respectively. Securities Carried at Fair Value with Changes Recorded in Net Income As of December 31, 2019, equity securities were carried at a fair value of $47.2 million with an amortized cost of $48.2 million and unrealized losses of $1.0 million. As of December 31, 2018, the fair value and amortized cost of equity securities were Other Than Temporary Impairment As discussed in Note 1 — Business and Summary of Significant Accounting Policies There were no OTTI losses recognized for the year ended December 31, 2019. There were insignificant OTTI losses for the year ended December 31, 2018 and the Company recognized OTTI losses of For AFS debt securities with unrealized losses that were neither OTTI nor credit-related, the Company believes it is not more-likely-than-not that it will have to sell such securities with unrealized losses prior to the recovery of the amortized cost basis. There were no adjustments related to impairment for securities without readily determinable fair values measured under the measurement exception. There were immaterial unrealized losses on non-marketable investments. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Assets | NOTE 7 — OTHER ASSETS The following table presents the components of other assets. Other Assets (dollars in millions) December 31, December 31, 2019 2018 Tax credit investments (1) $ 365.6 $ 313.9 Right of use assets 194.9 - Fair value of derivative financial instruments 190.7 119.9 Property, furniture and fixtures 160.0 160.0 Counterparty receivables 126.5 57.0 Intangible assets, net 66.0 89.2 Current and deferred federal and state tax assets 55.6 137.0 Other (2) 479.9 432.5 Total other assets $ 1,639.2 $ 1,309.5 (1) in this balance are LIHTC of $263.3 million and $217.7 million as of December 31, 2019 and December 31, 2018, respectively, that provide tax benefits to investors in the form of tax deductions from operating losses and tax credits. Refer to Note 1 – Business and Summary of Significant Accounting Policy for additional information. During 2019, 2018 and 2017, the Company recognized total tax benefits of $35.5 million, $34.2 million and $29.6 million, respectively, which included tax credits of $28.0 million, $27.0 million, and $22.6 million recorded in income taxes. During 2019, 2018 and 2017, the Company recorded $29.8 million, $29.1 million and $50.8 million, respectively, in tax provisions under the proportional amortization method. The Company is periodically required to provide additional financial support during the investment period. The Company’s liability for these unfunded commitments are included in Note 12 – Other Liabilities. See also Note 9 – Variable Interest Entities. (2 ) |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
DEPOSITS | NOTE 8 — DEPOSITS The following table provides detail on deposit types. Deposits — Deposit types (dollars in millions) December 31, December 31, 2019 2018 Interest-bearing $ 33,546.4 $ 29,553.8 Non-interest bearing 1,593.1 1,685.7 Total deposits $ 35,139.5 $ 31,239.5 The following table presents the maturities of time deposits. Deposits —Maturities (dollars in millions) December 31, Time deposits, remaining contractual maturity: 2019 Within one year 7,671.8 One to two years 2,028.9 Two to three years 322.5 Three to four years 348.5 Four to five years 628.6 Over five years 168.0 Total Time deposits $ 11,168.3 The following table presents the maturity profile of time deposits with a denomination of $100,000 or more. Time Deposits $100,000 or More (dollars in millions) December 31, 2019 Time Deposits: Three months or less $ 1,658.5 After three months through six months 1,528.0 After six months through twelve months 2,655.7 After twelve months 3,060.1 Total $ 8,902.3 The Company also had aggregate time deposits of $4,705.6 million and $5,647.2 million in denominations that met or exceeded the FDIC current insurance limit of $250,000 at December 31, 2019 and 2018, respectively. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | NOTE 9 — VARIABLE INTEREST ENTITIES Variable Interest Entities Described below are the results of the Company’s assessment of its variable interests in order to determine its current status with regards to being the VIE PB. See Note 1 — Business and Summary of Significant Accounting Policies Consolidated VIEs At December 31, 2019 and 2018, there were no consolidated VIEs. Unconsolidated VIEs Unconsolidated VIEs include agency and non-agency securitization structures, limited partnership interests and joint ventures where the Company’s involvement is limited to an investor interest and the Company does not have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance or obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. In connection with the sale of Financial Freedom in 2018, CIT transferred the economic benefit and risk of the HECM loans and the GNMA HMBS securitizations to the buyer, but continued to act as master servicer. At December 31, 2018, these were VIEs for which CIT was not the PB and which were reported in discontinued operations. At December 31, 2019, there were no VIEs in Discontinued Operations as CIT transferred the servicer obligation to a third party upon receiving the GNMA consent. See Note 2 — Discontinued Operations. The table below presents potential losses that would be incurred under hypothetical circumstances, such that the value of its interests and any associated collateral declines to zero and assuming no recovery or offset from any economic hedges. The Company believes the possibility is remote under this hypothetical scenario; accordingly, this required disclosure is not an indication of expected loss. Unconsolidated VIEs (dollars in millions) December 31, 2019 December 31, 2018 Securities Partnership Investment Securities Partnership Investment Agency securities $ 5,338.6 $ — $ 5,519.9 $ — Tax credit equity investments — 277.1 — 233.4 Equity investments — 84.0 — 73.5 Total Assets $ 5,338.6 $ 361.1 $ 5,519.9 $ 306.9 Commitments to tax credit investments (1) $ — $ 120.1 $ — $ 97.8 Total Liabilities $ — $ 120.1 $ — $ 97.8 Maximum loss exposure ( 2 ) $ 5,338.6 $ 361.1 $ 5,519.9 $ 306.9 (1) Represents commitments to invest in affordable housing investments, and other investments qualifying for community reinvestment tax credits. These commitments are payable on demand and are recorded in Other liabilities. (2) Maximum loss exposure to the unconsolidated VIEs excludes the liability for representations and warranties and for corporate guarantees, and also excludes servicing advances. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
BORROWINGS | NOTE 10 — BORROWINGS The following table presents the carrying value of outstanding borrowings. Borrowings (dollars in millions) December 31, 2019 December 31, 2018 CIT Group Inc. Subsidiaries Total Total Unsecured borrowings: Senior $ 3,421.9 $ 546.0 $ 3,967.9 $ 3,413.0 Subordinated notes 494.4 - 494.4 395.4 Secured borrowings: FHLB advances - 1,650.0 1,650.0 3,600.0 Other secured and structured financings - 361.1 361.1 710.4 Total borrowings $ 3,916.3 $ 2,557.1 $ 6,473.4 $ 8,118.8 The following table summarizes contractual maturities of borrowings outstanding, which excludes PAA discounts, original issue discounts and FSA discounts. Contractual Maturities – Borrowings as of December 31, 2019 (dollars in millions) Total 2020 2021 2022 2023 Thereafter Senior Unsecured notes $ 3,998.4 $ — $ 500.0 $ 1,147.0 $ 750.0 $ 1,601.4 Subordinated unsecured notes 500.0 — — — — 500.0 FHLB advances 1,650.0 — 1,650.0 — — — Other secured and structured financings 364.3 14.3 350.0 — — — Total Long-term borrowings $ 6,512.7 $ 14.3 $ 2,500.0 $ 1,147.0 $ 750.0 $ 2,101.4 Unsecured Borrowings Revolving Credit Facility The Revolving Credit Facility had a total commitment amount of $400 million at December 31, 2019, which was reduced from a total commitment amount of $500 million at December 31, 2018. The applicable margin charged under the facility is 2.00% for LIBOR Rate loans and 1.00% for Base Rate loans. The final maturity date of the lenders’ commitments is March 1, 2021. The Revolving Credit Facility includes a covenant that requires that the Company maintain a minimum Tier 1 capital ratio of 9.0%. As of December 31, 2019, the Revolving Credit Facility was unsecured and was guaranteed by three of the Company’s domestic operating subsidiaries. In addition, the applicable required minimum guarantor asset coverage ratio ranged from 1.0:1.0 1.5:1.0 1.25:1.00 The Revolving Senior Unsecured Notes In September 2019, CIT Bank issued $550 million aggregate principal amount of 2.969% Senior Unsecured Fixed-to-Floating Rate Notes due 2025 (the “Notes”). Interest on the Notes is payable semi-annually. From September 27, 2024, through September 26, 2025, the Notes will bear interest at a rate per annum equal to a benchmark, the Secured Overnight Financing Rate (“SOFR”), plus a margin of 1.715%. The Notes mature on September 27, 2025. The following table presents maturity dates of senior unsecured notes by tranches. Senior Unsecured Notes (dollars in millions) Maturity Date Rate (%) Date of Issuance Par Value March 2021 4.125% March 2018 $ 500.0 August 2022 5.000% August 2012 1,147.0 August 2023 5.000% August 2013 750.0 February 2024 4.750% August 2018 500.0 March 2025 5.250% March 2018 500.0 September 2025 2.969% September 2019 550.0 Weighted average rate and total 4.606% $ 3,947.0 In addition to the notes shown in the above table, there is an unsecured note outstanding with a 6.0% coupon and a carrying value of $39.8 million (par value of $51 million) that matures in 2036. The structured financings and unsecured debt redemptions resulted in debt extinguishment losses of $0.5 million, $38.6 million and $220.0 million for the years ended December 31, 2019, 2018 and 2017, respectively. Subordinated Unsecured Notes In November 2019, CIT issued $100 million aggregate principal amount of 4.125% subordinated notes with a maturity date of November 13, 2029. In March 2018, CIT issued $400 million aggregate principal amount of 6.125% subordinated notes with a maturity date of March 9, 2028. The notes are subordinated in right of payment to the payment of CIT’s senior indebtedness and secured indebtedness. Secured Borrowings At December 31, 2019, the Company had pledged $11.3 billion of assets (including collateral for the FRB discount window that is currently not drawn). Effective April 5, 2019, the FHLB released its blanket lien covering approximately $18.9 billion (book value) of CIT Bank assets. At December 31, 2019, the collateral specifically identified and used to calculate available borrowings was $11.3 billion, which included $11.2 billion of loans and $0.1 billion of cash and cash equivalents. Under the FHLB Facility, CIT Bank, N.A. may at any time grant a security interest in, sell, convey or otherwise dispose of any of the assets used for collateral, provided that CIT Bank, N.A. is in compliance with the collateral maintenance requirement immediately following such disposition and all other requirements of the facility at the time of such disposition. FHLB Advances As a member of the FHLB of San Francisco, CIT Bank N.A. can access financing based on an evaluation of its creditworthiness, statement of financial position, size and eligibility of collateral. The interest rates charged by the FHLB for advances typically vary depending upon maturity, the cost of funds of the FHLB, and the collateral provided for the borrowing. Advances are secured by certain Bank assets and bear either a fixed or floating interest rate. The FHLB advances are collateralized by a variety of consumer and commercial loans, including SFR mortgage loans, multi-family mortgage loans, commercial real estate loans, certain foreclosed properties and certain amounts receivable under the IndyMac LSA with the FDIC, which expired in March 2019. As of December 31, 2019, the Company had $6.4 billion of financing capacity with the FHLB, of which $4.7 billion was unused and available. FHLB Advances as of December 31, 2019 have a weighted average rate of 2.04%. The following table includes the total outstanding FHLB Advances, and respective pledged assets. FHLB Advances with Pledged Assets (1) (dollars in millions) December 31, 2019 December 31, 2018 FHLB Advances Pledged Assets FHLB Advances Pledged Assets Total $ 1,650.0 $ 6,987.6 $ 3,600.0 $ 6,712.4 (1) For purposes of this table the term "Pledged Assets" means the assets required under the collateral maintenance requirement in connection with FHLB advances at each of the dates. Other Secured and Structured Financings Set forth in the following table are borrowings and pledged assets related to secured (other than FHLB) and structured financings of CIT-owned subsidiaries. The secured and structured financings as of December 31, 2019 had a weighted average rate of 3.03%, with rates ranging from 3.01% to 3.58%. Other Secured and Structured Financings and Pledged Assets Summary (dollars in millions) December 31, 2019 December 31, 2018 Secured Borrowing Pledged Assets Secured Borrowing Pledged Assets Commercial Finance $ 346.8 $ 2,188.5 $ 695.3 $ 2,833.7 Rail 14.3 17.4 15.1 17.8 Total $ 361.1 $ 2,205.9 $ 710.4 $ 2,851.5 Not included in the above table are secured borrowings of discontinued operations of $195.0 million at December 31, 2018. See Note 2 — Discontinued Operations FRB The Company has a borrowing facility with the FRB Discount Window that can be used for short-term, typically overnight borrowings. The borrowing capacity is determined by the FRB based on the collateral pledged. There were no outstanding borrowings with the FRB Discount Window as of December 31, 2019 and December 31, 2018. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | NOTE 11 — DERIVATIVE FINANCIAL INSTRUMENTS As part of managing exposure to interest rate and foreign currency risk, the Company enters into derivative transactions with other financial institutions. The Company also enters into derivative contracts with customers as part of its Commercial Banking business. The Company does not enter into derivative contracts for proprietary trading or speculative purposes. See Note 1 — Business and Summary of Significant Accounting Policies The following table presents fair values and notional values of derivative financial instruments, which includes the gross amounts of recognized financial assets and liabilities; the amounts offset in the consolidated balance sheet; the net amounts presented in the consolidated balance sheet; the amounts subject to an enforceable master netting arrangement or similar agreement that were not included in the offset Fair and Notional Values of Derivative Financial Instruments (1) (dollars in millions) December 31, 2019 December 31, 2018 Notional Amount Asset Fair Value Liability Fair Value Notional Amount Asset Fair Value Liability Fair Value Derivatives designated as hedging instruments Foreign exchange contracts $ 676.3 $ - $ (10.6 ) $ 646.1 $ 26.9 $ (0.3 ) Interest rate contracts (2) (4) 1,250.0 - - 250.0 1.9 - Total derivatives designated as hedging instruments 1,926.3 - (10.6 ) 896.1 28.8 (0.3 ) Derivatives not designated as hedging instruments Interest rate contracts (2) (4) 17,588.1 176.9 (14.5 ) 15,889.5 87.8 (59.7 ) Foreign exchange contracts 982.9 13.7 (6.1 ) 832.5 3.1 (19.7 ) Other contracts (3) 714.7 0.1 (0.8 ) 436.6 0.2 - Total derivatives not designated as hedging instruments 19,285.7 190.7 (21.4 ) 17,158.6 91.1 (79.4 ) Gross derivatives fair values presented in the Consolidated Balance Sheets $ 21,212.0 190.7 (32.0 ) $ 18,054.7 119.9 (79.7 ) Less: Gross amounts offset in the Consolidated Balance Sheets - - - - Net amount presented in the Consolidated Balance Sheet 190.7 (32.0 ) 119.9 (79.7 ) Less: Amounts subject to master netting agreements (5) (11.8 ) 11.8 (49.2 ) 49.2 Less: Cash collateral pledged (received) subject to master netting agreements (6) (1.2 ) 14.3 (15.4 ) 0.3 Total net derivative fair value $ 177.7 $ (5.9 ) $ 55.3 $ (30.2 ) (1) (2) (3) (4) (5) (6) CIT enters into interest rate swap agreements to manage interest rate exposure on its fixed-rate borrowings. The agreements that qualify for hedge accounting are designated as a fair value hedge. The following table represents the impact of fair value hedges recognized as interest expense on the consolidated statements of income. Qualifying Hedges (dollars in millions) Years Ended December 31, 2019 2018 2017 Recognized on derivatives $ 3.6 $ 0.3 $ - Recognized on hedged item (3.6 ) (0.3 ) - Net recognized on fair value hedges (No ineffectiveness) $ - $ - $ - The following table presents the impact of non-qualifying hedges recognized as other non-interest income on the consolidated statements of income Non Qualifying Hedges (dollars in millions) Years Ended December 31, 2019 2018 2017 Interest rate contracts $ 11.7 $ 17.1 $ 8.6 Foreign currency forward contracts 25.5 (13.5 ) (34.2 ) Other contracts 1.7 13.2 (3.1 ) Total non-qualifying hedges - income statement impact $ 38.9 $ 16.8 $ (28.7 ) The following table presents the pre-tax net gains (losses) recorded in the consolidated statements of comprehensive income relating to derivatives designated as net investment hedges: Pre-tax Net Gains (Losses) Relating to Derivatives Designated as Net Investment Hedges (dollars in millions) Amounts reclassified from Amounts Total change in AOCI to income recorded in OCI AOCI for period Contract Type Year ended December 31, 2019 Foreign currency forward contracts - net investment hedges $ - $ (27.3 ) $ (27.3 ) Year ended December 31, 2018 Foreign currency forward contracts - net investment hedges $ 51.5 $ 72.2 $ 20.7 Year ended December 31, 2017 Foreign currency forward contracts - net investment hedges $ 13.4 $ (74.7 ) $ (88.1 ) TRS Facility Two of CIT’s wholly-owned subsidiaries, one Canadian, CIT Financial Ltd. (“CFL”) and one Dutch, CIT TRS Funding B.V. (“BV”), were each party to a financing facility (the “Canadian TRS Facility” and the “Dutch TRS Facility”, respectively) that were structured as TRS with Goldman Sachs International (“GSI”). Under each TRS, the amount available for advances (otherwise known as the unused portion) was accounted for as a derivative financial instrument and recorded at its respective estimated fair value. As of December 31, 2017, the total facility capacity available under the Dutch TRS Facility was $625 million with a “notional amount” of $182.4 million representing the unused portion or derivative financial instrument. On October 5, 2018, BV issued an Optional Termination Notice (as that term is defined for purposes of that certain Master Agreement) to GSI to terminate the Dutch TRS Facility. Pursuant to the Optional Termination Notice, the Dutch TRS Facility was terminated on November 2, 2018 (the “Optional Termination Date”). The exercise of BV’s option to terminate the Dutch TRS Facility prior to maturity required an $85.6 million payment from BV to GSI representing the present value of the remaining facility fee (the “Optional Termination Fee”). This payment, in combination with the decrease of the Dutch TRS derivative liability of $13.3 million, contributed to a net pretax charge of $69.5 million in other non-interest income in the fourth quarter of 2018. For the year ended December 31, 2017, an increase in the derivative liability of $2.8 million was recognized in other non-interest income based on the Company’s valuation. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | NOTE 12 — OTHER LIABILITIES The following table presents the components of other liabilities. Other Liabilities (dollars in millions) December 31, December 31, 2019 2018 Accrued expenses and accounts payable $ 565.4 $ 561.5 Lease liabilities (1) 242.6 - Current and deferred taxes payable 167.2 106.9 Commitment to fund tax credit investments 119.5 97.1 Accrued interest payable 92.9 91.7 Fair value of derivative financial instruments 32.0 79.7 Other liabilities (2) 485.1 324.2 Total other liabilities $ 1,704.7 $ 1,261.1 (1) (2) Other consists of liabilities for taxes other than income, equipment maintenance reserves, cash collateral deposits, contingent liabilities and other miscellaneous liabilities. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 13 — FAIR VALUE Fair Value Hierarchy The Company measures certain financial assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP also establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three levels. See Note 1 — Business and Summary of Significant Accounting Policies Disclosures that follow in this note exclude assets and liabilities classified as discontinued operations. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table summarizes the Company’s assets and liabilities measured at estimated fair value on a recurring basis. Assets and Liabilities Measured at Fair Value on a Recurring Basis (dollars in millions) Total Level 1 Level 2 Level 3 December 31, 2019 Assets Residential MBS – U.S. government/sponsored agency $ 4,773.8 $ — $ 4,773.8 $ — U.S. treasury securities 11.3 4.7 6.6 — Other securities 1,226.7 — 1,159.6 67.1 Total debt securities AFS 6,011.8 4.7 5,940.0 67.1 Securities carried at fair value with changes recorded in net income 47.2 0.1 47.1 — Interest rate contracts — non-qualifying hedges 176.9 — 176.7 0.2 Other derivative — non-qualifying hedges 13.8 — 13.7 0.1 Total derivative assets at fair value — non-qualifying hedges (1) 190.7 — 190.4 0.3 Total $ 6,249.7 $ 4.8 $ 6,177.5 $ 67.4 Liabilities Interest rate contracts — non-qualifying hedges $ (14.5 ) $ — $ (14.5 ) $ — Other derivative— non-qualifying hedges (6.9 ) — (6.1 ) (0.8 ) Total derivative liabilities at fair value — non-qualifying hedges (1) (21.4 ) — (20.6 ) (0.8 ) Foreign currency forward contracts — net investment qualifying hedges (10.6 ) — (10.6 ) — Total derivative liabilities at fair value — qualifying hedges (10.6 ) — (10.6 ) — FDIC True-up liability (68.8 ) — — (68.8 ) Total $ (100.8 ) $ — $ (31.2 ) $ (69.6 ) December 31, 2018 Assets Residential MBS – U.S. government/sponsored agency $ 5,225.2 $ — $ 5,225.2 $ — U.S. treasury securities 251.5 53.9 197.6 — Other securities 454.6 — 388.7 65.9 Total debt securities AFS 5,931.3 53.9 5,811.5 65.9 Securities carried at fair value with changes recorded in net income 44.6 0.1 44.5 — Interest rate contracts — non-qualifying hedges 87.8 — 87.6 0.2 Other derivative — non-qualifying hedges 3.3 — 3.1 0.2 Total derivative assets at fair value — non-qualifying hedges (1) 91.1 — 90.7 0.4 Foreign currency forward contracts — net investment qualifying hedges 26.9 — 26.9 — Interest rate contracts —fair value qualifying hedges 1.9 — 1.9 — Total Derivative assets at fair value — qualifying hedges (1) 28.8 — 28.8 — Total $ 6,095.8 $ 54.0 $ 5,975.5 $ 66.3 Liabilities Interest rate contracts — non-qualifying hedges $ (59.7 ) $ — $ (59.7 ) $ — Other derivative— non-qualifying hedges (19.7 ) — (19.7 ) — Total derivative liabilities at fair value — non-qualifying hedges (1) (79.4 ) — (79.4 ) — Foreign currency forward contracts — net investment qualifying hedges (0.3 ) — (0.3 ) — Total derivative liabilities at fair value — qualifying hedges (0.3 ) — (0.3 ) — FDIC True-up liability (66.9 ) — — (66.9 ) Total $ (146.6 ) $ — $ (79.7 ) $ (66.9 ) (1) The methods and assumptions used to estimate the fair value of each class of financial instruments measured at fair value on a recurring basis are as follows: Debt securities AFS —Investments in U.S. government agency and sponsored agency guaranteed mortgage-backed securities, U.S. government agency and sponsored agency obligations, U.S. Treasury securities and supranational securities were valued using Level 2 inputs. The market for certain corporate bonds is not active, therefore the estimated fair value was determined using a discounted cash flow technique. Given the lack of observable market data, the estimated fair value of the corporate bonds was classified as Level 3. See for details on significant inputs and valuation techniques. Securities carried at fair value with changes recorded in net income — Most equity securities were valued using Level 2 inputs based on published net asset value, with the remaining securities being valued using Level 1 inputs. Derivative Assets and Liabilities — Derivatives were valued using models that incorporate inputs depending on the type of derivative. Besides the fair value of credit derivatives, which were estimated using Level 3 inputs, most derivative instruments were valued using Level 2 inputs based on quoted prices for similar assets and liabilities and model-based valuation techniques for which all significant assumptions are observable in the market. See Note 1 – Business and Summary of Significant Accounting Policies for details on significant inputs and valuation techniques. See Note 11 — Derivative Financial Instruments for notional principal amounts and fair values. FDIC True-up Liability — The FDIC True-up liability was recorded at estimated fair value as of the date of the OneWest Transaction related to the FDIC-assisted transaction of La Jolla and is measured at fair value at each reporting date until the contingency is resolved. Due to the significant unobservable inputs used, these measurements were classified as Level 3. The following tables summarize information about significant unobservable inputs related to the Company’s categories of Level 3 financial assets and liabilities measured on a recurring basis as of December 31, 2019 and December 31, 2018. Quantitative Information about Level 3 Fair Value Measurements — Recurring (dollars in millions) Financial Instrument Estimated Fair Value Valuation Technique(s) Significant Unobservable Inputs Range of Inputs Weighted Average December 31, 2019 Assets Debt Securities — AFS $ 67.1 Discounted cash flow Discount Rate 6.0% - 6.2% 6.0% Derivative assets — non qualifying 0.3 Internal valuation model Borrower Rate 2.8% - 5.0% 3.6% Total Assets $ 67.4 Liabilities FDIC True-up liability $ (68.8 ) Discounted cash flow Discount Rate 2.2% 2.2% Derivative liabilities — non-qualifying (0.8 ) Internal valuation model Total Liabilities $ (69.6 ) December 31, 2018 Assets Debt Securities — AFS $ 65.9 Discounted cash flow Discount Rate 6.0% - 6.2% 6.1% Derivative assets — non qualifying 0.4 Internal valuation model Borrower Rate 3.3% - 5.7% 4.4% Total Assets $ 66.3 Liabilities FDIC True-up liability $ (66.9 ) Discounted cash flow Discount Rate 4.5% 4.5% Total Liabilities $ (66.9 ) The following table summarizes the changes in estimated fair value for all assets and liabilities measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3): Changes in Estimated Fair Value of Level 3 Financial Assets and Liabilities Measured on a Recurring Basis (dollars in millions) Securities- AFS Securities Carried at Fair Value with Changes Recorded in Net Income Derivative Assets- Non- Qualifying Derivative Liabilities- Non- Qualifying FDIC True-up Liability Consideration Holdback Liability Balance as of December 31, 2018 $ 65.9 $ — $ 0.4 $ — $ (66.9 ) $ — Included in earnings 0.1 — (0.1 ) (0.8 ) (1.9 ) — Included in comprehensive income 1.1 — — — — — Balance as of December 31, 2019 $ 67.1 $ — $ 0.3 $ (0.8 ) $ (68.8 ) $ — Balance as of December 31, 2017 $ 385.8 $ 0.4 $ 0.1 $ (14.1 ) $ (65.1 ) $ (46.0 ) Included in earnings 16.8 — 0.3 14.1 (1.8 ) 8.0 Included in comprehensive income (22.7 ) — — — — — Sales, paydowns, and adjustments (314.0 ) (0.4 ) — — — 38.0 Balance as of December 31, 2018 $ 65.9 $ — $ 0.4 $ — $ (66.9 ) $ — Assets Measured at Fair Value on a Non-recurring Basis Certain assets or liabilities are required to be measured at estimated fair value on a non-recurring basis subsequent to initial recognition. Generally, these adjustments are the result of LOCOM or other impairment accounting. In determining the estimated fair values, the Company determined that substantially all the changes in estimated fair value were due to declines in market conditions versus instrument specific credit risk. This was determined by examining the changes in market factors relative to instrument specific factors. The following table presents assets measured at estimated fair value on a non-recurring basis for which a non-recurring change in fair value has been recorded in the current year: Carrying Value of Assets Measured at Fair Value on a Non-recurring Basis (dollars in millions) Carrying Value Fair Value Measurements at Reporting Date Using: Total Level 1 Level 2 Level 3 Total Gains (Losses) December 31, 2019 Assets held for sale $ 22.6 $ — $ 1.9 $ 20.7 $ 2.2 Impaired loans 244.8 — — 244.8 (73.5 ) Tax credit investments 82.0 — — 82.0 (5.1 ) Total $ 349.4 $ — $ 1.9 $ 347.5 $ (76.4 ) December 31, 2018 Assets held for sale $ 30.4 $ — $ 1.4 $ 29.0 $ 14.2 Impaired loans 111.5 — — 111.5 (42.6 ) Total $ 141.9 $ — $ 1.4 $ 140.5 $ (28.4 ) The methods and assumptions used to estimate the fair value of each class of financial instruments measured at fair value on a non-recurring basis are as follows: Assets Held for Sale — As there was no liquid secondary market for most AHFS, the fair value was primarily estimated based on Level 3 inputs. Impaired Loans — The value of impaired loans was assessed through the evaluation of their aggregate carrying values relative to contractual amounts owed (unpaid principal balance) from customers. See — . Tax Credit Investments – The fair value was estimated based on remaining future tax benefits and Level 3 inputs. During the fourth quarter of 2019, the Company recognized an impairment loss of $5.1 million on certain tax credit investments. See for carrying value of tax credit investments and for the information on accounting for tax credit investments. Financial Instruments not Measured at Fair Value The carrying values and estimated fair values of financial instruments not measured at fair value presented below exclude leases and certain other assets and liabilities, which were not required for disclosure. Financial Instruments (dollars in millions) Estimated Fair Value Carrying Value Level 1 Level 2 Level 3 Total December 31, 2019 Financial Assets Cash and interest bearing deposits $ 2,685.6 $ 2,685.6 $ — $ — $ 2,685.6 Assets held for sale (excluding leases) 29.6 — 7.5 22.2 29.7 Loans (excluding leases) 28,744.5 — 1,114.5 27,684.3 28,798.8 Securities purchased under agreement to resell 950.0 — 950.0 — 950.0 Investment securities (1) 217.8 — — 217.8 217.8 Other assets subject to fair value disclosure (2) 418.2 — — 418.2 418.2 Financial Liabilities Deposits (3) (35,156.2 ) — — (35,263.8 ) (35,263.8 ) Borrowings (3) (6,549.6 ) — (6,532.0 ) (365.2 ) (6,897.2 ) Credit balances of factoring clients (1,176.2 ) — — (1,176.2 ) (1,176.2 ) Other liabilities subject to fair value disclosure (4) (831.6 ) — — (831.6 ) (831.6 ) December 31, 2018 Financial Assets Cash and interest bearing deposits $ 1,795.6 $ 1,795.6 $ — $ — $ 1,795.6 Assets held for sale (excluding leases) 68.2 — 5.0 63.3 68.3 Loans (excluding leases) 28,306.0 — 983.4 26,893.4 27,876.8 Securities purchased under agreement to resell 400.0 — 400.0 — 400.0 Investment securities (1) 257.9 — — 257.9 257.9 Other assets subject to fair value disclosure (2) 419.7 — — 423.9 423.9 Financial Liabilities Deposits (3) (31,255.8 ) — — (31,245.0 ) (31,245.0 ) Borrowings (3) (8,194.2 ) — (7,463.0 ) (721.5 ) (8,184.5 ) Credit balances of factoring clients (1,674.4 ) — — (1,674.4 ) (1,674.4 ) Other liabilities subject to fair value disclosure (4) (657.0 ) — — (657.0 ) (657.0 ) (1) See in this note above for debt securities AFS and securities carried at fair value with changes recorded in net income. (2) (3) (4) The methods and assumptions used to estimate the fair value of each class of financial instruments not measured at fair value are as follows: Assets Held for Sale – See above in this note for fair value measurements of AHFS. Loans ▪ Commercial and Consumer Loans Note 1 – Business and Summary of Significant Accounting Policies ▪ PCI loans Securities Purchased Under Agreement to Resell – The fair value of securities purchased under agreement to resell was determined using a discount cash flow technique. Interest rates appropriate to the maturity and underlying collateral are used for discounting the estimated cash flows. As observable market interest rates are used, the fair value of securities purchased under agreement to resell was classified as Level 2. Investment Securities ▪ Non-marketable securities Deposits — The estimated fair value of deposits with no stated maturity, such as demand deposit accounts, money market accounts, and savings accounts was the amount payable on demand at the reporting date. The fair value of time deposits is estimated using Level 3 inputs. Borrowings The Level 2 fair value of borrowings were calculated using market inputs and discounted value of the contractual cash flows using current estimated market discount rates for borrowings with similar terms, remaining maturities and put dates and did not require significant judgment . ▪ Unsecured debt — Unsecured debt consisted of both senior debt and subordinated debt with a par value of $4.5 billion and $3.8 billion at December 31, 2019 and December 31, 2018, respectively. ▪ Secured borrowings — Secured borrowings consisted of FHLB advances with a par value of $1.7 billion and $3.6 billion at December 31, 2019 and December 31, 2018, respectively. The estimated fair value of FHLB advances was based on the discounted cash flow model. The cash flows were calculated using the contractual features of the advances and then discounted using observable rates The Level 3 fair value of borrowings included: ▪ Secured borrowings Credit balances of factoring clients — The impact of the time value of money from the unobservable discount rate for credit balances of factoring clients is inconsequential due to the short term nature of these balances (typically 90 days or less), therefore, the carrying value approximated fair value, and the credit balances were classified as Level 3 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 14 — STOCKHOLDERS' EQUITY A roll forward of common stock is presented in the following table. Issued Less Treasury Outstanding Common stock - December 31, 2018 161,073,078 (60,153,371 ) 100,919,707 Restricted stock issued 1,051,131 - 1,051,131 Repurchase of common stock - (6,901,574 ) (6,901,574 ) Shares held to cover taxes on vesting restricted shares and other - (390,778 ) (390,778 ) Employee stock purchase plan participation 64,078 - 64,078 Common stock - December 31, 2019 162,188,287 (67,445,723 ) 94,742,564 During the year ended December 31, 2019, CIT repurchased a total of 6,901,574 shares for $340.9 million via open market repurchases. The Company retired 48 million common shares in 2018, which reduced treasury stock by $2,343.6 million, with corresponding reductions in common stock ($0.5 million), paid-in capital ($2,029.1 million) and retained earnings ($314.0 million). Preferred Stock On May 31, 2017, CIT Group Inc. issued $325 million of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A (“Preferred Stock”). The shares pay at a perpetual dividend rate (non-cumulative) per annum equal to 5.80% from the original issue date to, but excluding, June 15, 2022. Thereafter, the shares pay at a floating rate per annum equal to three-month LIBOR on the related dividend determination date plus a spread of 3.972% per annum. Dividends are paid semi-annually in arrears on June 15 and December 15, ending on June 15, 2022. Thereafter, dividends will be paid quarterly in arrears on March 15, June 15, September 15 and December 15 of each year. The Issuer may redeem the Preferred Stock at its option, at a redemption price equal to $1,000 per share, plus any declared and unpaid dividends, without regard to any undeclared dividends, (i) in whole or in part, from time to time, on any dividend payment date on or after June 15, 2022, or (ii) in whole, but not in part, within 90 days following the occurrence of a “regulatory capital treatment event”. Net proceeds were $318.0 million. On November 13, 2019, the Company issued $200 million of 5.625% Non-Cumulative Perpetual Preferred Stock, Series B. Dividends are payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year. The Issuer may redeem the Preferred Stock at its option, at a redemption price equal to $25 per share, plus any declared and unpaid dividends, without regard to any undeclared dividends, (i) in whole or in part, from time to time, on any dividend payment date on or after December 15, 2024, or (ii) in whole, but not in part, within 90 days following the occurrence of a “regulatory capital treatment event”. Net proceeds were $195.1 million. The Company declared and paid dividends on our common and preferred stock totaling $146.7 million and $115.9 million during 2019 and 2018, respectively. Accumulated Other Comprehensive Income (Loss) ("AOCI") The following table details the components of AOCI, net of tax: Components of Accumulated Other Comprehensive Loss (dollars in millions) December 31, 2019 December 31, 2018 Gross Unrealized Income Taxes Net Unrealized Gross Unrealized Income Taxes Net Unrealized Foreign currency translation adjustments $ (1.9 ) $ (7.2 ) $ (9.1 ) $ (6.7 ) $ (14.2 ) $ (20.9 ) Changes in benefit plans net (loss) gains and prior service (cost)/credit (51.3 ) (1.3 ) (52.6 ) (74.9 ) 4.7 (70.2 ) Unrealized net gains (loss) on securities AFS 13.6 (4.0 ) 9.6 (117.1 ) 29.9 (87.2 ) Total Other comprehensive (loss) income $ (39.6 ) $ (12.5 ) $ (52.1 ) $ (198.7 ) $ 20.4 $ (178.3 ) The following table details the changes in the components of AOCI, net of income taxes: Changes in Accumulated Other Comprehensive Income (Loss) by Component (dollars in millions) Foreign currency translation adjustments Changes in benefit plan net gain (loss) and prior service (cost) credit Unrealized net gains (losses) on AFS securities Total AOCI Balance as of December 31, 2018 $ (20.9 ) $ (70.2 ) $ (87.2 ) $ (178.3 ) AOCI activity before reclassifications 11.8 17.6 100.4 129.8 Amounts reclassified from AOCI — — (3.6 ) (3.6 ) Net current period AOCI 11.8 17.6 96.8 126.2 Balance as of December 31, 2019 $ (9.1 ) $ (52.6 ) $ 9.6 $ (52.1 ) Balance as of December 31, 2017 $ (8.0 ) $ (54.5 ) $ (24.0 ) $ (86.5 ) Adoption of ASUs 2016-01 and 2018-02 3.3 0.3 (4.1 ) (0.5 ) AOCI activity before reclassifications (12.2 ) (16.5 ) (45.0 ) (73.7 ) Amounts reclassified from AOCI (4.0 ) 0.5 (14.1 ) (17.6 ) Net current period AOCI (16.2 ) (16.0 ) (59.1 ) (91.3 ) Balance as of December 31, 2018 $ (20.9 ) $ (70.2 ) $ (87.2 ) $ (178.3 ) Other Comprehensive Loss The amounts included in the Consolidated Statements of Comprehensive Income are net of income taxes. Reclassifications Out of AOCI (dollars in millions) Years Ended December 31, 2019 2018 Gross Amount Tax Net Amount Gross Amount Tax Net Amount Income Statement Line Item Foreign currency translation adjustments gains AOCI activity before reclassification $ 4.8 $ 7.0 $ 11.8 $ 3.2 $ (15.4 ) $ (12.2 ) Reclassifications Out of AOCI — — — (10.7 ) 6.7 (4.0 ) Other non-interest income Net change 4.8 7.0 11.8 (7.5 ) (8.7 ) (16.2 ) Changes in benefit plan net loss and prior service (cost)/credit losses AOCI activity before reclassification 23.6 (6.0 ) 17.6 (21.9 ) 5.4 (16.5 ) Reclassifications Out of AOCI — — — 0.6 (0.1 ) 0.5 Operating expenses Net change 23.6 (6.0 ) 17.6 (21.3 ) 5.3 (16.0 ) Unrealized net gains on securities AFS AOCI activity before reclassification 135.5 (35.1 ) 100.4 (59.5 ) 14.5 (45.0 ) Reclassifications Out of AOCI (4.8 ) 1.2 (3.6 ) (19.2 ) 5.1 (14.1 ) Other non-interest income Net change 130.7 (33.9 ) 96.8 (78.7 ) 19.6 (59.1 ) Net current period AOCI $ 159.1 $ (32.9 ) $ 126.2 $ (107.5 ) $ 16.2 $ (91.3 ) |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital | NOTE 15 — REGULATORY CAPITAL The Company and the Bank are each subject to various regulatory capital requirements administered by the FRB and the OCC. Quantitative measures established by regulation to ensure capital adequacy require that the Company and the Bank each maintain minimum amounts and ratios of Total, Tier 1 and Common Equity Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. We compute capital ratios in accordance with Federal Reserve capital guidelines and OCC capital guidelines for assessing adequacy of capital for the Company and CIT Bank, respectively. The regulatory capital guidelines applicable to the Company and Bank were the Basel III Rule and the Transition Final Rule (effective January 1, 2018 to extend the regulatory capital treatment under 2017 transition provisions for certain items). The following table summarizes the actual and effective minimum required capital ratios: Capital Components and Ratios (dollars in millions) CIT CIT Bank, N.A. December 31, December 31, December 31, December 31, 2019 2018 2019 2018 Common Equity Tier 1 Capital $ 5,444.4 $ 5,278.2 $ 4,879.6 $ 4,783.6 Tier 1 Capital 5,969.3 5,592.7 4,879.6 4,783.6 Total Capital 6,983.3 6,519.3 5,644.3 5,230.4 Risk-Weighted Assets 45,262.0 44,051.7 37,150.5 35,697.6 Common Equity Tier 1 Capital Ratio Actual 12.0 % 12.0 % 13.1 % 13.4 % Effective minimum ratios under Basel III guidelines (1) 7.0 % 6.375 % 7.0 % 6.375 % Tier 1 Capital Ratio: Actual 13.2 % 12.7 % 13.1 % 13.4 % Effective minimum ratios under Basel III guidelines (1) 8.5 % 7.875 % 8.5 % 7.875 % Total Capital Ratio: Actual 15.4 % 14.8 % 15.2 % 14.7 % Effective minimum ratios under Basel III guidelines (1) 10.5 % 9.875 % 10.5 % 9.875 % Tier 1 Leverage Ratio: Actual 11.9 % 11.6 % 11.0 % 11.6 % Required minimum ratio for capital adequacy purposes 4.0 % 4.0 % 4.0 % 4.0 % (1) Required ratios under Basel III Rule include the fully phased-in capital conservation buffer of 2.5% as of December 31, 2019, and the partially phased-in capital conservation buffer of 1.875% |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 16 — EARNINGS PER SHARE The following table sets forth the computation of the Basic and Diluted earnings per share: Earnings per Share (dollars in millions, except per share amounts; shares in thousands) Years Ended December 31, 2019 2018 2017 Income from continuing operations $ 529.4 $ 472.1 $ 259.4 Preferred stock dividends 18.9 18.9 9.8 Income from continuing operations available to common shareholders 510.5 453.2 249.6 Income (loss) from discontinued operations 0.5 (25.0 ) 208.8 Net income available to common shareholders $ 511.0 $ 428.2 $ 458.4 Weighted Average Common Shares Outstanding Basic shares outstanding 96,503 117,653 162,290 Stock-based awards (1) 418 1,124 1,660 Diluted shares outstanding 96,921 118,777 163,950 Basic Earnings Per Common Share Data Income from continuing operations $ 5.29 $ 3.85 $ 1.54 Income (loss) from discontinued operations 0.01 (0.21 ) 1.28 Basic income per common share $ 5.30 $ 3.64 $ 2.82 Diluted Earnings Per Common Share Data Income from continuing operations $ 5.27 $ 3.82 $ 1.52 Income (loss) from discontinued operations - (0.21 ) 1.28 Diluted income per common share $ 5.27 $ 3.61 $ 2.80 (1) |
Non-Interest Income
Non-Interest Income | 12 Months Ended |
Dec. 31, 2019 | |
Noninterest Income [Abstract] | |
Non-Interest Income | NOTE 17 — NON-INTEREST INCOME Non-interest Income (dollars in millions) Years Ended December 31, 2019 2018 2017 Rental income on operating leases $ 857.7 $ 1,009.0 $ 1,007.4 Other non-interest income 415.2 373.8 364.2 Total non-interest income $ 1,272.9 $ 1,382.8 $ 1,371.6 Other non-interest income Fee revenues $ 116.7 $ 103.5 $ 113.6 Factoring commissions 98.8 102.4 102.9 Gains on leasing equipment, net of impairments 71.1 59.5 43.1 BOLI income 29.1 25.5 7.6 Property tax income 22.2 - - Gains on investment securities, net of impairments 6.2 15.3 28.9 Other revenues 71.1 67.6 68.1 Total other non-interest income $ 415.2 $ 373.8 $ 364.2 |
Non-Interest Expenses
Non-Interest Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Noninterest Expense [Abstract] | |
Non-Interest Expenses | NOTE 18 — NON-INTEREST EXPENSES Non-Interest Expense (dollars in millions) Years Ended December 31, 2019 2018 2017 Depreciation on operating lease equipment $ 308.6 $ 311.1 $ 296.3 Maintenance and other operating lease expenses 180.7 230.4 222.9 Operating expenses 1,113.2 1,070.0 1,188.5 Goodwill impairment - - 255.6 Loss on debt extinguishments and deposit redemptions 0.5 38.6 220.0 Total non-interest expenses $ 1,603.0 $ 1,650.1 $ 2,183.3 Operating expenses Compensation and benefits $ 566.8 $ 558.4 $ 566.3 Technology 135.8 131.5 127.9 Net occupancy expense 91.3 65.6 67.8 Professional fees 75.9 82.7 132.3 Insurance 51.1 68.3 84.7 Advertising and marketing 40.4 47.6 42.2 Property tax expense 24.1 - - Intangible asset amortization 23.2 23.9 24.7 Restructuring costs 15.1 - 53.0 Other expenses 89.5 92.0 89.6 Total operating expenses $ 1,113.2 $ 1,070.0 $ 1,188.5 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 19 — INCOME TAXES The following table presents the U.S. and non-U.S. components of income before provision (benefit) for income taxes: Income from Continuing Operations Before Provision (Benefit) for Income Taxes (dollars in millions) Years Ended December 31, 2019 2018 2017 U.S. operations $ 609.2 $ 471.4 $ 251.9 Non-U.S. operations 14.7 165.6 (60.3 ) Income from continuing operations before provision / (benefit) for income taxes $ 623.9 $ 637.0 $ 191.6 The provision (benefit) for income taxes is comprised of the following: Provision (Benefit) for Income Taxes (dollars in millions) Years Ended December 31, 2019 2018 2017 Current U.S. federal income tax provision / (benefit) $ (10.9 ) $ 29.5 $ 73.7 Deferred U.S. federal income tax provision 118.1 56.1 24.8 Total federal income tax provision 107.2 85.6 98.5 Current state and local income tax provision / (benefit) (2.1 ) 8.4 (0.7 ) Deferred state and local income tax provision / (benefit) 51.4 24.8 (27.8 ) Total state and local income tax provision / (benefit) 49.3 33.2 (28.5 ) Total non-U.S. income tax provision / (benefit) (61.8 ) 37.6 (31.4 ) Total provision for income taxes $ 94.7 $ 156.4 $ 38.6 Continuing operations $ 94.5 $ 164.9 $ (67.8 ) Discontinued operations 0.2 (8.5 ) 106.4 Total provision for income taxes $ 94.7 $ 156.4 $ 38.6 A reconciliation from the U.S. Federal statutory rate to the Company's actual effective income tax rate is as follows: Percentage of Pretax Income Years Ended December 31 (dollars in millions) Effective Tax Rate 2019 2018 2017 Continuing Operations Pretax Income Income tax expense (benefit) Percent of pretax income Pretax Income Income tax expense (benefit) Percent of pretax Income Pretax Income Income tax expense (benefit) Percent of pretax income Federal income tax rate $ 623.9 $ 131.1 21.0 % $ 637.0 $ 133.8 21.0 % $ 191.6 $ 67.0 35.0 % Increase (decrease) due to: State and local income taxes, net of federal income tax benefit — 32.1 5.1 % — 30.2 4.7 % — 4.4 2.3 % Non-deductible goodwill — — — % — — — % — 58.7 30.7 % Domestic tax credits — (11.1 ) (1.8 )% — (13.2 ) (2.1 )% — (20.7 ) (10.8 )% Cumulative Method Change — Tax Advantaged Investments (1) — — — % — — — % — 26.6 13.9 % Effect of tax law changes — — — % — — — % — (22.6 ) (11.8 )% Difference in tax rates applicable to non-U.S. earnings — (1.4 ) (0.2 )% — 7.2 1.1 % — (1.6 ) (0.8 )% International income subject to U.S. tax — 1.1 0.2 % — 8.7 1.4 % — 1.2 0.6 % Unrecognized tax expense (benefit) — (12.1 ) (1.9 )% — 1.5 0.2 % — (0.2 ) (0.1 )% Deferred income taxes on international unremitted earnings (2) — (53.4 ) (8.6 )% — 12.4 1.9 % — 4.6 2.4 % International Restructuring — — — % — 13.6 2.2 % — (237.9 ) (124.2 )% Valuation allowances — (10.0 ) (1.6 )% — (28.9 ) (4.4 )% — 60.5 31.6 % Other — 18.2 2.9 % — (0.4 ) (0.1 )% — (7.8 ) (4.2 )% Effective Tax Rate — Continuing operations $ 94.5 15.1 % $ 164.9 25.9 % $ (67.8 ) (35.4 )% Discontinued Operation Federal income tax rate $ 0.7 $ 0.1 21.0 % $ (33.4 ) $ (7.0 ) 21.0 % $ 315.2 $ 110.3 35.0 % Increase (decrease) due to: State and local income taxes, net of federal income tax benefit — 0.1 4.7 % — (1.5 ) 4.3 % — 7.2 2.3 % Lower tax rates applicable to non-U.S. earnings — — — % — — — % — (93.2 ) (29.6 )% International income subject to U.S. tax — — — % — — — % — 44.2 14.0 % Deferred income taxes on international unremitted earnings — — % — — % 39.7 12.6 % Other — — — % — — — % — (1.8 ) (0.5 )% Effective Tax Rate — Discontinued operations $ 0.2 25.7 % $ (8.5 ) 25.3 % $ 106.4 33.8 % Total Effective Tax Rate $ 94.7 15.2 % $ 156.4 25.9 % $ 38.6 7.6 % (1) Amount relates to the change in accounting policy for LIHTC. See Note 1 — Business and Summary of Significant Accounting Policies. (2) Amount was primarily driven by the determination that earnings from Canadian operations will be reinvested indefinitely in Canada, thus reversing a previously established deferred tax liability resulting in a tax benefit. The tax effects of temporary differences that give rise to deferred income tax assets and liabilities are presented below: Components of Deferred Income Tax Assets and Liabilities (dollars in millions) December 31, 2019 2018 Deferred Tax Assets: Net operating loss (NOL) carry forwards $ 686.2 $ 765.1 Basis difference in loans 177.6 200.9 Provision for credit losses 130.6 127.5 Accrued liabilities and reserves 87.2 91.1 Deferred stock-based compensation 18.0 16.7 Domestic tax credits 117.3 124.1 Capital Loss Carryforward 2.5 11.4 Unrealized net losses on securities AFS — 28.1 Other 48.3 34.3 Total gross deferred tax assets 1,267.7 1,399.2 Deferred Tax Liabilities: Operating leases (1,153.4 ) (1,015.7 ) Loans and direct financing leases (20.8 ) (28.8 ) Basis difference in mortgage backed securities — (0.6 ) Basis difference in federal home loan bank stock (5.5 ) (15.8 ) Non-U.S. unremitted earnings (0.6 ) (55.1 ) Unrealized net gains on securities AFS (5.7 ) — Unrealized foreign exchange gains — (21.0 ) Goodwill and intangibles (23.3 ) (22.7 ) Other (25.0 ) (26.3 ) Total deferred tax liabilities (1,234.3 ) (1,186.0 ) Total net deferred tax asset before valuation allowances 33.4 213.2 Less: Valuation allowances (198.5 ) (229.8 ) Net deferred tax liability after valuation allowances $ (165.1 ) $ (16.6 ) Net Operating Loss Carryforwards and Valuation Adjustments As of December 31, 2019, CIT has deferred tax assets ("DTAs") from continuing operations totaling $686.2 million on its global NOLs. This includes: (1) a DTA of $387.2 million relating to its cumulative U.S. federal NOLs of $1.9 billion; (2) DTAs of $287.0 million relating to cumulative state NOLs of $5.0 billion, including amounts of reporting entities that file in multiple jurisdictions, and (3) DTAs of $12.0 million relating to cumulative non-U.S. NOLs of $47.3 million. The U.S. federal NOLs will begin to expire in 2029, state NOLs will begin to expire in 2020, and foreign NOLs will begin to expire in 2021. During 2019, Management updated the Company's long term forecast of future U.S. federal taxable income. The updated forecasts continue to support the realization of the U.S. federal DTAs on NOLs and therefore no VA is necessary. However, a VA of $183.2 million was retained on U.S. state DTAs on certain NOLs as of December 31, 2019. During 2017, the Company reported a net $177.4 million U.S. income tax benefit comprised of a gross $234.2 million tax benefit on a capital loss of $610.5 million realized on the liquidation of a wholly-owned foreign subsidiary partially offset by a $56.8 million charge to establish a VA against the unused portion of the capital loss. As a result of the change in the U.S. Federal income tax rate from 35 percent to 21 percent beginning in 2018, the VA against the capital loss carryforwards was revalued to $39.6 million as of December 31, 2017. During 2019, the Company released the remaining $9.0 million and $1.5 million of U.S. federal and state VA, respectively, on the DTA established on capital loss carryforwards, down from $10.5 million in 2018. The reduction was attributable to net capital gains recognized in 2019 in the normal course of business. Additionally, the Company generated $2.5 million of net capital losses during 2019 from the impairment of LIHTC investments which was partially offset by a $0.5 million VA against the unused portion of the capital loss. The Company will recognize the income tax benefit on the remaining portion of the DTA subject to the VA to the extent of additional capital gains. Capital losses can be carried forward for five years to offset future capital gains but require a VA until additional capital gains are identified. The Company maintained a VA of $14.8 million against certain non-U.S. reporting entities' net DTAs at December 31, 2019, down from $18.0 million at December 31, 2018. The decrease is mainly related to the write-off of DTAs for certain reporting entities due to the remote likelihood that they will ever utilize their respective DTAs. The Company's ability to recognize DTAs is evaluated on a quarterly basis to determine if there are any significant events that would affect our ability to utilize existing DTAs. If events are identified that affect our ability to utilize our DTAs, VAs may be adjusted accordingly. L iabilities for Unrecognized Tax Benefits A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Unrecognized Tax Benefits (dollars in millions) Liabilities for Unrecognized Tax Benefits Interest / Penalties Grand Total Balance at December 31, 2018 $ 13.8 $ 6.9 $ 20.7 Additions for tax positions related to prior years 15.2 4.5 19.7 Reductions for tax positions of prior years (3.8 ) (2.3 ) (6.1 ) Expiration of statutes of limitations (6.8 ) — (6.8 ) Settlements (5.3 ) (2.8 ) (8.1 ) Foreign currency revaluation 0.3 0.2 0.5 Balance at December 31, 2019 $ 13.4 $ 6.5 $ 19.9 During the year ended December 31, 2019, the Company recorded a net $0.8 million decrease in unrecognized tax benefits ("UTBs"), including interest and penalties. The majority of the net decrease is related to the reversal of a position in a foreign jurisdiction due to the expiration of the statute of limitations partially offset by the establishment of a new position related to the recognition of certain state NOLs. During the year ended December 31, 2019, the Company recognized $0.4 million income tax benefit relating to interest and penalties on its UTBs. The change in balance is mainly related to the reversal of interest and penalties associated with the above mentioned UTBs taken on a prior year Canadian position due to the expiration of statute of limitations. As of December 31, 2019, the accrued liability for interest and penalties is $6.5 million. The Company recognizes accrued interest and penalties on UTBs in income tax expense. The entire $19.9 million of UTBs including interest and penalties at December 31, 2019, would lower the Company's effective tax rate, if realized. Management believes that it is reasonably possible the total potential liability before interest and penalties may be increased or decreased by $10 million within the next twelve months of the reporting date because of anticipated settlement with taxing authorities, resolution of open tax matters, and the expiration of various statutes of limitations. Income Tax Audits The Company is subject to examinations by the U.S. Internal Revenue Service (“IRS”) and other taxing authorities in jurisdictions where the Company has significant business operations. The tax years under examination vary by jurisdiction. The Company does not expect completion of those audits to have a material impact on the firm’s financial condition, but it may be material to operating results for a particular period, depending, in part, on the operating results for that period. The table below presents the earliest tax years that remain subject to examination by major jurisdiction. Jurisdiction December 31, 2019 U.S. Federal 2017 New York State and City 2015 California 2014 Canada 2012 During 2019, the Company received notification from the IRS of commencement of a new federal income tax exam for the 2017 tax year. The audit will begin during the first quarter of 2020. IMB Holdco LLC and its subsidiaries are under examination by the California Franchise Tax Board ("FTB") for tax years 2014 through 2015. The Company and its subsidiaries are under examination in various states, provinces and countries for years ranging from 2012 through 2017. Management does not anticipate that these examination results will have any material financial impact. |
Retirement, Postretirement and
Retirement, Postretirement and Other Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement, Postretirement And Other Benefit Plans | NOTE 20 — RETIREMENT, POSTRETIREMENT AND OTHER BENEFIT PLANS CIT provides various benefit programs, including defined benefit retirement and postretirement plans, and defined contribution savings incentive plans. A summary of major plans is provided below. Retirement and Postretirement Benefit Plans Retirement Benefits CIT maintains a frozen U.S. non-contributory pension plan (the "Plan") qualified under the Internal Revenue Code (“IRC”). The Company also maintains a frozen U.S. non-contributory supplemental retirement plan (the "Supplemental Plan”), and an Executive Retirement Plan, which has been closed to new members since 2006, and whose participants are all inactive as of December 31, 2018. Accumulated balances under the Plan and the Supplemental Plan continue to receive periodic interest, subject to certain government limits. The interest credit was 2.98%, 2.60% and 2.84% for the years ended December 31, 2019, 2018 and 2017, respectively. Postretirement Benefits CIT provides healthcare and life insurance benefits to eligible retired employees. For most eligible retirees, healthcare is contributory and life insurance is non-contributory. All postretirement benefit plans are funded on a pay-as-you-go basis. The Company amended CIT's postretirement benefit plans to discontinue benefits effective December 31, 2012. CIT no longer offers retiree medical, dental and life insurance benefits to those who did not meet the eligibility criteria for these benefits by December 31, 2013. Obligations and Funded Status The following tables set forth changes in benefit obligation, plan assets, funded status and net periodic benefit cost of the retirement plans and postretirement plans: Obligations and Funded Status (dollars in millions) Retirement Benefits Post-Retirement Benefits 2019 2018 2019 2018 Change in benefit obligation Benefit obligation at beginning of year $ 414.0 $ 439.8 $ 29.8 $ 34.5 Interest cost 15.8 14.7 1.2 1.2 Actuarial (gain) / loss 26.5 (16.1 ) 3.1 (4.1 ) Benefits paid (29.7 ) (23.7 ) (3.9 ) (3.5 ) Other (0.8 ) (0.7 ) 1.1 1.7 Benefit obligation at end of year 425.8 414.0 31.3 29.8 Change in plan assets Fair value of plan assets at beginning of period 333.4 374.3 — — Actual return on plan assets 70.0 (23.3 ) — — Employer contributions 6.9 6.7 2.8 1.7 Benefits paid (29.7 ) (23.7 ) (3.9 ) (3.5 ) Other (0.8 ) (0.6 ) 1.1 1.8 Fair value of plan assets at end of period 379.8 333.4 — — Funded status at end of year (1) $ (46.0 ) $ (80.6 ) $ (31.3 ) $ (29.8 ) Information for pension plans with a benefit obligation in excess of plan assets Projected benefit obligation $ 425.8 $ 414.0 $ 31.3 $ 29.8 Accumulated benefit obligation $ 425.8 $ 414.0 N/A N/A Fair value of plan assets $ 379.8 $ 333.4 N/A N/A N/A – Not Applicable (1) Company assets of $79.3 million and $83.6 million as of December 31, 2019 and 2018, respectively, related to the non-qualified U.S. executive retirement plan obligation are not included in plan assets but related liabilities are in the benefit obligation The net periodic benefit cost and other amounts recognized in OCI consisted of the following: Net Periodic Benefit Costs and Other Amounts (dollars in millions) Retirement Benefits Post-Retirement Benefits 2019 2018 2017 2019 2018 2017 Interest cost $ 15.8 $ 14.7 $ 16.0 $ 1.2 $ 1.2 $ 1.2 Expected return on plan assets (16.7 ) (18.9 ) (19.3 ) - - - Other (1) 2.0 1.3 6.1 (1.9 ) (1.0 ) (1.5 ) Net periodic benefit cost (credit) 1.1 (2.9 ) 2.8 (0.7 ) 0.2 (0.3 ) Other Changes in Plan Assets and Benefit Obligations Recognized in OCI Net loss/(gain) (26.8 ) 26.2 (17.1 ) 3.1 (4.1 ) 0.5 Amortization, settlement or curtailment recognition (2.0 ) (1.3 ) (1.5 ) 1.9 1.0 1.6 Total recognized in OCI (28.8 ) 24.9 (18.6 ) 5.0 (3.1 ) 2.1 Total recognized in net periodic benefit cost and OCI $ (27.7 ) $ 22.0 $ (15.8 ) $ 4.3 $ (2.9 ) $ 1.8 (1) $4.7 million curtailment and special termination benefit costs were recorded in discontinued operations in the accompanying financial statements at December 31, 2017. The net (gain)/loss recognized in OCI for the years ended December 31, 2019, 2018 and 2017 are primarily due to the following factors: Significant Gains and Losses Affecting the Benefit Obligation (dollars in millions) 2019 2018 2017 Asset (Gains)/Losses $ (53.3 ) $ 42.2 $ (26.9 ) Discount Rate Decrease/(Increase) 39.0 (21.5 ) 12.7 Interest Crediting Rate (Decrease)/Increase (8.3 ) 4.3 (2.2 ) Other (6.2 ) (0.1 ) (2.2 ) (Increase)/Decrease in OCI $ (28.8 ) $ 24.9 $ (18.6 ) Assumptions Discount rate assumptions used for pension and post-retirement benefit plan accounting reflect prevailing rates available on high-quality, fixed-income debt instruments with maturities that match the benefit obligation. Expected long-term rate of return assumptions on assets are based on projected asset allocation and historical and expected future returns for each asset class. Independent analysis of historical and projected asset returns, inflation, and interest rates are provided by the Company's investment consultants and actuaries as part of the Company's assumptions process. The weighted average assumptions used in the measurement of benefit obligations are as follows: Weighted Average Assumptions Retirement Benefits Post-Retirement Benefits 2019 2018 2019 2018 Discount rate 3.00 % 4.00 % 3.00 % 4.00 % Interest crediting rate 1.75 % 2.75 % N/A N/A Pre-65 N/A N/A 5.80 % 6.10 % Post-65 N/A N/A 6.50 % 6.90 % Ultimate health care cost trend rate N/A N/A 4.50 % 4.50 % Year ultimate reached N/A N/A 2037 2037 N/A – Not Applicable The weighted average assumptions used to determine net periodic benefit costs are as follows: Weighted Average Assumptions Retirement Benefits Post-Retirement Benefits 2019 2018 2019 2018 Discount rate 4.00 % 3.50 % 4.00 % 3.50 % Expected long-term return on plan assets 5.25 % 5.25 % N/A N/A Interest crediting rate 2.75 % 2.25 % N/A N/A N/A – Not Applicable Healthcare rate trends have a significant effect on healthcare plan costs. The Company uses both external and historical data to determine healthcare rate trends. Plan Assets CIT maintains a "Statement of Investment Policies and Objectives" which specifies guidelines for the investment, supervision and monitoring of pension assets in order to manage the Company's objective of ensuring sufficient funds to finance future retirement benefits. The asset allocation policy allows assets to be invested between 15% to 35% in Equities, 35% to 65% in Fixed-Income, 15% to 25% in Global Asset Allocation, and 5% to 10% in Alternative Investments. The asset allocation follows a Liability Driven Investing ("LDI") strategy. The policy provides specific guidance on asset class objectives, fund manager guidelines and identification of prohibited and restricted transactions. It is reviewed periodically by the Company's Investment Committee and external investment consultants. There were no direct investments in equity securities of CIT or its subsidiaries included in pension plan assets in any of the years presented. Plan investments are stated at fair value. Common stock traded on security exchanges as well as mutual funds, exchange traded funds and short term investment funds are valued at closing market prices. Such investments are considered Level 1 per fair value hierarchy. Investments in Common Collective Trusts and Alternative Investment Funds are carried at fair value based upon reported net asset values ("NAV"). The tables below set forth asset fair value measurements. Fair Value Measurements (dollars in millions) December 31, 2019 Level 1 Level 2 Level 3 Not Classified 1 Total Fair Value Cash $ 1.6 $ — $ — $ — $ 1.6 Common Collective Trust, measured at NAV — — — 378.2 378.2 $ 1.6 $ — $ — $ 378.2 $ 379.8 December 31, 2018 Cash $ 11.8 $ — $ — $ — $ 11.8 Mutual Fund 76.0 — — — 76.0 Exchange Traded Funds 17.7 — — — 17.7 Common Stock 19.6 — — — 19.6 Short Term Investment Fund, measured at NAV 1.2 — — — 1.2 Common Collective Trust, measured at NAV — — — 188.2 188.2 Partnership, measured at NAV — — — 9.4 9.4 Hedge Fund, measured at NAV — — — 9.5 9.5 $ 126.3 $ — $ — $ 207.1 $ 333.4 (1) These investments have been measured using the net asset value per share practical expedient and are not required to be classified in the table above. Contributions The Company's policy is to make contributions so that they exceed the minimum required by laws and regulations, are consistent with the Company's objective of ensuring sufficient funds to finance future retirement benefits and are tax deductible. CIT currently does not expect to have a required minimum contribution to the U.S. Retirement Plan during 2020. For all other plans, CIT currently expects to contribute $9.1 million during 2020. Estimated Future Benefit Payments The following table depicts benefits projected to be paid from plan assets or from the Company's general assets calculated using current actuarial assumptions. Actual benefit payments may differ from projected benefit payments. Projected Benefits (dollars in millions) For the years ended December 31, Retirement Benefits Gross Postretirement Benefits Medicare Subsidy Receipts 2020 $ 28.6 $ 2.5 $ 0.2 2021 28.1 2.4 0.2 2022 26.9 2.3 0.1 2023 27.6 2.3 0.1 2024 26.7 2.2 0.1 2025 – 2029 134.9 9.9 0.4 Savings Incentive Plan CIT has defined contribution retirement plans covering certain of its U.S. employees which qualify under section 401(k) of the Internal Revenue Code. Employees may contribute a portion of their eligible compensation, as defined, subject to regulatory limits and plan provisions, and the Company matches these contributions up to a threshold. Participants are also eligible for an additional discretionary company contribution. The cost of these plans totaled $20.5 million, $19.2 million, and $18.7 million for the years ended December 31, 2019, 2018 and 2017, respectively. Stock-Based Compensation In February 2016, the Company adopted the CIT Group Inc. 2016 Omnibus Incentive Plan (the "2016 Plan"), which provides for grants of stock-based awards to employees, executive officers and directors, and replaced the Amended and Restated CIT Group Inc. Long-Term Incentive Plan (the "Prior Plan"). The number of shares of common stock that may be issued for all purposes under the 2016 Plan is (1) 5 million shares plus (2) the number of authorized shares remaining available under the Prior Plan plus (3) the number of shares relating to awards granted under the Prior Plan that subsequently are forfeited, expire, terminate or otherwise lapse or are settled for cash, in whole or in part, as provided by the 2016 Plan. At December 31, 2019, the total number of shares that may be issued under the 2016 Plan was 3,733,327 (excludes 2,014,049 shares underlying outstanding awards granted to employees and/or directors that are unvested and/or unsettled). Currently under the 2016 Plan, the issued and unvested awards consist mainly of Restricted Stock Units ("RSUs") and Performance Stock Units ("PSUs"). The fair value of RSUs and PSUs are based on the fair market value of CIT's common stock on the date of grant. Compensation expense is recognized over the vesting period or the requisite service period, which is generally three years for RSUs, under the graded vesting method, whereby each vesting tranche of the award is amortized separately as if each were a separate award. Compensation expense for PSUs that cliff vest are recognized over the vesting period, which is generally three years, and on a straight-line basis. Operating expenses includes $44.2 million of compensation expense related to equity-based awards granted to employees or members of the Board of Directors for the year ended December 31, 2019, including $43.8 million related to restricted and retention stock and unit awards and the remaining related to stock purchases. Compensation expense related to equity-based awards included $38.8 million and $41.9 million for the years ended December 31, 2018 and 2017, respectively. Total unrecognized compensation cost related to nonvested awards was $26.1 million at December 31, 2019. This cost is expected to be recognized over a weighted average period of 1.87 years. Employee Stock Purchase Plan Eligibility for participation in the Employee Stock Purchase Plan (“ESPP”) includes employees of CIT and its participating subsidiaries, except that any employees designated as highly compensated are not eligible to participate in the ESPP. Under the ESPP, CIT is authorized to issue up to 2,000,000 shares of common stock to eligible employees. Eligible employees can choose to have between 1% and 10% of their base salary withheld to purchase shares quarterly, at a purchase price equal to 85% of the fair market value of CIT common stock on the last business day of the quarterly offering period. The amount of common stock that may be purchased by a participant through the ESPP is generally limited to $25,000 per year. A total of 64,078, 61,722 and 54,684 shares were purchased under the plan in 2019, 2018 and 2017, respectively. Restricted Stock Units and Performance Stock Units RSUs and PSUs are awarded at no cost to the recipient upon grant. RSUs are generally granted annually at the discretion of the Company, but may also be granted during the year to new hires. RSUs granted to employees and members of the Board during 2019 and 2018 generally were scheduled to vest either one third Certain senior executives receive long-term incentive (“LTI”) awards, which are generally granted at the discretion of the Company annually. During 2019 and 2018, LTI has been awarded 50% in the form of PSUs based on after-tax ROTCE with a total shareholder return (“TSR”) adjustment factor (described more fully below), and 50% in the form of performance based RSUs (described above). PSUs awarded during 2019 and 2018 may be earned at the end of a three-year The fair value of RSUs and PSUs that vested and settled in stock during 2019, 2018 and 2017 was $51.1 million, $72.8 million and $59.0 million, respectively. The following tables summarize restricted stock and RSU activity for 2019 and 2018: Stock and Cash — Settled Awards Outstanding Stock-Settled Awards Cash-Settled Awards December 31, 2019 Number of Shares Weighted Average Grant Date Value Number of Shares Weighted Average Grant Date Value Unvested at beginning of period 1,901,266 $ 43.88 13,192 $ 47.92 Vested / unsettled awards at beginning of period 258,169 34.15 — — PSUs - granted to employee 178,075 53.42 — — PSUs - incremental for performance above 2012-14 targets (8,086 ) 32.75 — — RSUs - granted to employees 782,122 50.51 — — RSUs - granted to directors 28,960 50.33 5,244 51.01 Forfeited / cancelled (75,343 ) 45.48 — — Vested / settled awards (1,051,114 ) 37.89 (6,462 ) 44.97 Vested / unsettled awards (207,797 ) 41.58 — — Unvested at end of period 1,806,252 $ 50.14 11,974 $ 50.86 December 31, 2018 Unvested at beginning of period 2,529,441 $ 37.55 15,071 $ 42.22 Vested / unsettled awards at beginning of period 246,057 45.09 — — PSUs - granted to employee 149,067 55.09 — — PSUs - incremental for performance above 2012-14 targets 17,716 45.88 — — RSUs - granted to employees 702,231 51.33 — — RSUs - granted to directors 21,718 51.91 6,350 53.15 Forfeited / cancelled (123,950 ) 41.97 — — Vested / settled awards (1,382,845 ) 39.65 (8,229 ) 41.52 Vested / unsettled awards (258,169 ) 34.15 — — Unvested at end of period 1,901,266 $ 43.88 13,192 47.92 |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS | NOTE 21 — COMMITMENTS The accompanying table summarizes off-balance sheet credit-related commitments and other purchase and funding commitments: Commitments (dollars in millions) December 31, 2019 December 31, 2018 Due to Expire Within One Year After One Year Total Outstanding Total Outstanding Financing Commitments Financing assets (1) $ 2,445.1 $ 4,014.6 $ 6,459.7 $ 7,136.3 Letters of credit Standby letters of credit 31.4 168.2 199.6 226.2 Other letters of credit 5.2 1.5 6.7 12.0 Deferred purchase agreements 2,060.6 — 2,060.6 1,959.5 Purchase and Funding Commitments Rail and other purchase commitments 813.7 — 813.7 344.8 (1) Financing Commitments Commercial Financing commitments, referred to as loan commitments or lines of credit, primarily reflect CIT’s agreements to lend to its customers, subject to the customers’ compliance with contractual obligations. At December 31, 2019, substantially all undrawn financing commitments were senior facilities. Most of the Company’s undrawn and available financing commitments are in the Commercial Banking segment. Financing commitments also include credit line agreements to Commercial Finance clients that are cancellable by us only after a notice period. The notice period is typically 90 days or less. The amount available under these credit lines, net of the amount of receivables assigned to us, was $172 million and $318 million at December 31, 2019 and 2018 , As financing commitments may not be fully drawn, may expire unused, may be reduced or canceled at the customer’s request, and may require the customer to be in compliance with certain conditions, total commitment amounts do not necessarily reflect actual future cash flow requirements. The table above excludes uncommitted revolving credit facilities extended by Commercial Finance to its’ clients for working capital purposes. In connection with these facilities, Commercial Finance has the sole discretion throughout the duration of these facilities to determine the amount of credit that may be made available to its clients at any time and whether to honor any specific advance requests made by its clients under these credit facilities. Letters of Credit In the normal course of meeting the needs of clients, CIT sometimes enters into agreements to provide financing and letters of credit. Standby letters of credit obligate the issuer of the letter of credit to pay the beneficiary if a client on whose behalf the letter of credit was issued does not meet its obligation. These financial instruments generate fees and involve, to varying degrees, elements of credit risk in excess of amounts recognized in the Consolidated Balance Sheets. To minimize potential credit risk, CIT generally requires collateral and in some cases additional forms of credit support from the client. Deferred Purchase Agreements A Deferred Purchase Agreement (“DPA”) is provided in conjunction with factoring, whereby CIT provides a client with credit protection for trade receivables without purchasing the receivables. The trade receivable terms are generally 90 days or less. If the client’s customer is unable to pay an undisputed receivable solely as the result of credit risk, then CIT purchases the receivable from the client. The outstanding amount in the table above is the maximum potential exposure that CIT would be required to pay under all DPAs. This maximum amount would only occur if all receivables subject to DPAs default in the manner described above, thereby requiring CIT to purchase all such receivables from the DPA clients. The table above includes $1,966 million and $1,895 million of DPA credit protection at December 31, 2019 and 2018, respectively, related to receivables which have been presented to us for credit protection after shipment of goods has occurred and the customer has been invoiced. The table also includes $94 million and $64 million available under DPA credit line agreements, net of the amount of DPA credit protection provided at December 31, 2019 and 2018, respectively. The DPA credit line agreements specify a contractually committed amount of DPA credit protection and are cancellable by us only after a notice period. The notice period is typically 90 days or less. Purchase and Funding Commitments CIT’s purchase commitments primarily relate to the Rail and Equipment Finance businesses. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Loss Contingency [Abstract] | |
CONTINGENCIES | NOTE 22 — CONTINGENCIES Litigation and other Contingencies CIT is involved, and from time to time in the future may be involved, in a number of pending and threatened judicial, regulatory, and arbitration proceedings as well as proceedings, investigations, examinations and other actions brought or considered by governmental and self-regulatory agencies. These matters arise in connection with the conduct of CIT’s business. At any given time, CIT may also be in the process of responding to subpoenas, requests for documents, data and testimony relating to such matters and engaging in discussions to resolve the matters (all of the foregoing collectively being referred to as “Litigation”). While most Litigation relates to individual claims, CIT is also subject to putative class action claims and similar broader claims and indemnification obligations. In view of the inherent difficulty of predicting the outcome of Litigation matters and indemnification obligations, particularly when such matters are in their early stages or where the claimants seek indeterminate damages, CIT cannot state with confidence what the eventual outcome of the pending Litigation will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss, fines, or penalties related to each pending matter will be, if any. In accordance with applicable accounting guidance, CIT establishes reserves for Litigation when those matters present loss contingencies as to which it is both probable that a loss will occur and the amount of such loss can be reasonably estimated. Based on currently available information, CIT believes that the outcome of Litigation that is currently pending will not have a material adverse effect on the Company’s financial condition, but may be material to the Company’s operating results or cash flows for any particular period, depending in part on its operating results for that period. The actual results of resolving such matters may be substantially higher than the amounts reserved. For certain Litigation matters in which the Company is involved, the Company is able to estimate a range of reasonably possible losses in excess of established reserves and insurance. For other matters for which a loss is probable or reasonably possible, such an estimate cannot be determined. For Litigation and other matters where losses are reasonably possible, management currently estimates the aggregate range of reasonably possible losses as up to $60 million in excess of any established reserves and any insurance we reasonably believe we will collect related to those matters. This estimate represents reasonably possible losses (in excess of established reserves and insurance) over the life of such Litigation, which may span a currently indeterminable number of years, and is based on information currently available as of December 31, 2019. The Litigation matters underlying the estimated range will change from time to time, and actual results may vary significantly from this estimate. Those Litigation matters for which an estimate is not reasonably possible or as to which a loss does not appear to be reasonably possible, based on current information, are not included within this estimated range and, therefore, this estimated range does not represent the Company’s maximum loss exposure. The foregoing statements about CIT’s Litigation are based on the Company’s judgments, assumptions, and estimates and are necessarily subjective and uncertain. The Company has several hundred threatened and pending judicial, regulatory and arbitration proceedings at various stages. Several of the Company’s significant Litigation matters are described below. Brazilian Tax Matter Banco Commercial Investment Trust do Brasil S.A. (“Banco CIT”), CIT’s Brazilian bank subsidiary, was sold in a stock sale in the fourth quarter of 2015, thereby transferring the legal liabilities of Banco CIT to the buyer. Under the terms of the stock sale, CIT remains liable for indemnification to the buyer for any losses resulting from certain Imposto Sobre Circulaco de Mercadorias e Servicos (“ICMS”) tax appeals relating to disputed local tax assessments on leasing services and importation of equipment (the “ICMS Tax Appeals”). Notices of infraction were issued to Banco CIT relating to the payment of ICMS taxes charged by Brazilian states in connection with the importation of equipment. The state of São Paulo claims that Banco CIT should have paid it ICMS taxes for tax years 2006 - 2009 because Banco CIT, the purchaser, was located in São Paulo. Instead, the ICMS taxes were paid to the state of Espirito Santo where the imported equipment arrived. A regulation issued by São Paulo in December 2013 reaffirms a 2009 agreement by São Paulo to conditionally recognize ICMS tax payments made to Espirito Santo. An assessment related to taxes paid to Espirito Santo was upheld in a ruling issued by the administrative court in May 2014. That ruling has been appealed. Another assessment related to taxes paid to Espirito Santo remains pending. Petitions seeking São Paulo’s recognition of the taxes paid to Espirito Santo were also filed in a general amnesty program. The larger of the two amnesty petitions was granted in the first quarter of 2018 and the smaller amnesty petition was granted in the fourth quarter of 2019. Both matters are pending dismissal with the court. Hawaiian Foreclosure Litigation Claims Based on recent rulings of the Hawaii Supreme Court, 43 individual lawsuits were filed against CIT in Hawaii alleging technical violations in non-judicial foreclosures. Similar cases have been filed against other mortgage lenders in Hawaii. The Hawaii Supreme Court did not establish a clear methodology for calculating alleged damages if a violation is proven and there is substantial dispute in this regard. In many instances the borrower had no equity in the home at the time of foreclosure. Damages sought in these cases include any lost equity, compensation for loss of use of the house and, in some cases, treble or punitive damages under Hawaii's unfair practices law. The Company has settled all of the individual lawsuits alleging foreclosure violations. In addition |
Certain Relationships And Relat
Certain Relationships And Related Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS | NOTE 23 — CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS CIT has an equity interest in Strategic Credit Partners Holdings LLC (the "JV"), a joint venture between CIT and TPG Special Situations Partners ("TSSP"). The JV extends credit in senior-secured, middle-market corporate term loans, and, in certain circumstances, is a participant to such loans. The JV may participate in corporate loans originated by CIT or other third party lenders. The JV may acquire other types of loans, such as subordinate corporate loans, second lien loans, revolving loans, asset backed loans and real estate loans. Through the year ended December 31, 2019, loans of $252.6 million were sold to the joint venture. CIT also maintains an equity interest of 10% in the JV, and our investment was $1.9 million and $5.6 million at December 31, 2019 and 2018, respectively. On July 10, 2017, CIT Northbridge Credit LLC (“Northbridge”) was formed and extends credit in asset-based lending middle-market loans. Northbridge is an asset-based-lending joint venture between CIT Bank, N.A. (“CIT Bank”) and Allstate Insurance Company and its subsidiary (“Allstate”). CIT Bank holds a 20% equity investment in Northbridge, and CIT Asset Management LLC, a non-bank subsidiary of CIT, acts as an investment advisor and servicer of the loan portfolio. Allstate is an 80% equity investor. CIT Bank’s investment was $18.2 million and $13.6 million at December 31, 2019 and 2018, respectively, with the expectation of additional investment as the joint venture grows. Management fees were earned by CIT Asset Management on loans under management. The joint venture is not consolidated and the investment is being accounted for using the equity method. CIT invests in various trusts, partnerships, and limited liability corporations established in conjunction with structured financing transactions of equipment, power and infrastructure projects. CIT's interests in these entities were entered into in the ordinary course of business. Other assets included approximately $365.6 million and $313.9 million at December 31, 2019, and 2018, respectively, of investments in non-consolidated entities relating to such transactions that are accounted for under the equity or cost methods. The combination of investments in and loans to non-consolidated entities represents the Company's maximum exposure to loss, as the Company does not provide guarantees or other forms of indemnification to non-consolidated entities. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION | NOTE 24 — BUSINESS SEGMENT INFORMATION Management's Policy in Identifying Reportable Segments CIT's reportable segments are primarily based upon industry categories, geography, target markets and customers served, and, to a lesser extent, the core competencies relating to product origination, distribution methods, operations and servicing and the nature of their regulatory environment. This segment reporting is reflective of the Company's internal reporting structure and is consistent with the presentation of financial information to the chief operating decision maker. Summary of Changes to Reportable Segments As of December 31, 2019, we manage our business and report our financial results in two operating segments: Commercial Banking and Consumer Banking, and a non-operating segment, Corporate (formerly Corporate and Other). In the fourth quarter of 2019, we modified our business segment reporting. The former segment Non-Strategic Portfolios (“NSP”), which included a nominal amount of loans held for sale at December 31, 2019, is now reported in Corporate. In Consumer Banking, we changed the name of the “Other Consumer Banking” division to “Consumer and Community Banking”. All segment data has been reclassified to conform to the current presentation and nomenclature. Types of Products and Services Commercial Banking consists of four divisions. Through its Commercial Finance Business Capital Real Estate Finance Rail Consumer Banking includes Consumer and Community Banking Legacy Consumer Mortgages Consumer and Community Banking LCM includes acquired SFR mortgages that are being run-off or sold. Certain of these loans were covered by LSAs with the FDIC. Covered loans were previously acquired by OneWest Bank, N.A. in connection with the FDIC-assisted IndyMac LSA (expired March 2019), First Federal LSA (expired December 2019), and La Jolla LSA (expiring February 2020) transactions. The FDIC indemnified OneWest Bank, N.A. against certain future losses sustained on these loans. Corporate Certain items are not allocated to operating segments and are included in Corporate. Some of the more significant and recurring items include interest income on investment securities, a portion of interest expense primarily related to corporate funding costs, mark-to-market adjustments on foreign currency hedges and income on BOLI (other non-interest income), restructuring charges, as well as certain unallocated costs and intangible assets amortization expenses (operating expenses) and loss on debt extinguishments Segment Profit and Assets The following table presents segment data related to continuing operations. Segment Pre-tax Income (Loss) (dollars in millions) Commercial Banking Consumer Banking Corporate Total CIT Year Ended December 31, 2019 Interest income $ 1,425.7 $ 364.9 $ 226.2 $ 2,016.8 Interest expense (benefit) 758.3 (125.3 ) 319.0 952.0 Provision (benefit) for credit losses 117.3 (6.5 ) - 110.8 Rental income on operating leases 857.7 - - 857.7 Other non-interest income 331.6 33.8 49.8 415.2 Depreciation on operating lease equipment 308.6 - - 308.6 Maintenance and other operating lease expenses 180.7 - - 180.7 Operating expenses/loss on debt extinguishment and deposit redemption 701.5 345.0 67.2 1,113.7 Income (loss) from continuing operations before provision (benefit) for income taxes $ 548.6 $ 185.5 $ (110.2 ) $ 623.9 Select Period End Balances Loans $ 24,393.4 $ 6,605.5 $ - $ 30,998.9 Credit balances of factoring clients (1,176.2 ) - - (1,176.2 ) Assets held for sale 23.1 8.9 0.1 32.1 Operating lease equipment, net 7,319.7 - - 7,319.7 Year Ended December 31, 2018 Interest income $ 1,333.0 $ 338.9 $ 218.5 $ 1,890.4 Interest expense (benefit) 716.3 (143.5 ) 242.3 815.1 Provision for credit losses 167.1 3.9 - 171.0 Rental income on operating leases 1,009.0 - - 1,009.0 Other non-interest income 320.8 35.0 18.0 373.8 Depreciation on operating lease equipment 311.1 - - 311.1 Maintenance and other operating lease expenses 230.4 - - 230.4 Operating expenses/loss on debt extinguishment and deposit redemption 692.9 369.3 46.4 1,108.6 Income (loss) from continuing operations before provision (benefit) for income taxes $ 545.0 $ 144.2 $ (52.2 ) $ 637.0 Select Period End Balances Loans $ 24,263.4 $ 6,532.0 $ - $ 30,795.4 Credit balances of factoring clients (1,674.4 ) - - (1,674.4 ) Assets held for sale 64.3 3.9 20.2 88.4 Operating lease equipment, net 6,970.6 - - 6,970.6 Year Ended December 31, 2017 Interest income $ 1,248.0 $ 378.1 $ 209.5 $ 1,835.6 Interest expense (benefit) 517.7 (51.8 ) 251.8 717.7 Provision for credit losses 88.7 25.9 - 114.6 Rental income on operating leases 1,007.4 - - 1,007.4 Other non-interest income 291.0 4.1 69.1 364.2 Depreciation on operating lease equipment 296.3 - - 296.3 Maintenance and other operating lease expenses 222.9 - - 222.9 Goodwill impairment 255.6 - - 255.6 Operating expenses/loss on debt extinguishment and deposit redemption 691.7 401.5 315.3 1,408.5 Income (loss) from continuing operations before provision (benefit) for income taxes $ 473.5 $ 6.6 $ (288.5 ) $ 191.6 Select Period End Balances Loans $ 23,159.3 $ 5,954.6 $ - $ 29,113.9 Credit balances of factoring clients (1,468.6 ) - - (1,468.6 ) Assets held for sale 1,334.2 865.6 63.3 2,263.1 Operating lease equipment, net 6,738.9 - - 6,738.9 Geographic Information The following table presents information by major geographic region based upon the location of the Company's legal entities. Geographic Region (dollars in millions) Total Assets (1) Total Revenue from continuing operations Income (loss) from continuing operations before provision (benefit) for income taxes Income (loss) from continuing operations U.S. 2019 $ 50,044.7 $ 3,242.2 $ 609.2 $ 452.9 2018 47,676.3 3,080.7 471.4 344.7 2017 46,825.9 3,046.1 251.9 287.3 Foreign 2019 788.1 47.5 14.7 76.5 2018 861.1 192.5 165.6 127.4 2017 2,452.8 161.1 (60.3 ) (27.9 ) Total consolidated 2019 50,832.8 3,289.7 623.9 529.4 2018 48,537.4 3,273.2 637.0 472.1 2017 49,278.7 3,207.2 191.6 259.4 (1) |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | NOTE 25 — GOODWILL AND INTANGIBLE ASSETS Goodwill remained unchanged during 2019 and 2018 and totaled $369.9 million at December 31, 2019 and 2018, which consisted of $326.7 million in Commercial Banking and $43.2 million in Consumer Banking. Goodwill included amounts from CIT's emergence from bankruptcy in 2009 and the 2015 acquisition of IMB HoldCo LLC, the parent company of OneWest Bank. With respect to the goodwill related to the acquisition of OneWest Bank, Once goodwill has been assigned, it no longer retains its association with a particular event or acquisition, and all of the activities within a RU, whether acquired or internally generated, are available to support the value of goodwill. The Company performs its annual goodwill impairment test during the fourth quarter of each year or more often if events or circumstances have changed significantly from the annual test date, utilizing data as of September 30 to perform the test. Accordingly, during the fourth quarter of 2019, the Company performed its annual goodwill impairment test. For 2019, we performed the quantitative impairment test for all RUs with goodwill remaining, including Commercial Finance, Real Estate Finance, Rail and Consumer Banking, and it was determined that no impairment existed. Fair Value Determining the value of the RUs as part of the quantitative impairment test involves significant judgment. The Company used a combination of the Income Approach (i.e. discounted cash flow method) and the Market Approach (i.e. Guideline Public Company ("GPC") and, where applicable, Guideline Merged and Acquired Company ("GMAC") methods) to determine the fair value. In the application of the Income Approach, the Company determined the fair value of the RUs using a discounted cash flow ("DCF") analysis. The DCF model uses earnings projections and respective capitalization assumptions based on two-year financial plans presented to the Board of Directors. Beyond the initial two-year period, the projections converge toward a constant long-term growth rate of up to 3% based on the projected revenues of the RU, as well as expectations for the development of gross domestic product and inflation, which are captured in the terminal value. Estimating future earnings and capital requirements involves judgment and the consideration of past and current performance and overall macroeconomic and regulatory environments. The cash flows determined based on the process described above are discounted to their present value. The discount rate (cost of equity) applied is comprised of a risk-free interest rate, an equity risk premium, a size premium and a factor covering the systematic market risk (RU-specific beta) and, where applicable, a company specific risk premium. The values for the factors applied are determined primarily using external sources of information. The RU-specific betas are determined based on a group of peer companies. The discount rates applied to the RUs ranged from 10.75% to 12.75%. In our application of the market approach, for the GPC Method, the Company applied market based multiples derived from the stock prices of companies considered by management to be comparable to each of the RUs, to various financial metrics for each of the RUs, as determined applicable to those RUs, including tangible book or book value, earnings and projected earnings. In addition, the Company applied a 25% control premium based on our review of transactions observable in the market place that we determined were comparable. The control premium is management's estimate of how much a market participant would be willing to pay over the fair market value for control of the business. With respect to the application of the GMAC method, the Company used actual prices paid in merger and acquisition transactions for similar public and private companies in the banking industry. The multiples were then applied to relevant financial metrics of the RUs. A weighting is ascribed to each of the results of the Income and Market approaches to determine the concluded fair value of each RU. The weighting is judgmental and is based on the perceived level of appropriateness of the valuation methodology for each specific RU. Estimating the fair value of RUs involves the use of estimates and significant judgments that are based on a number of factors including actual operating results. If current conditions change from those expected, it is reasonably possible that the judgments and estimates described above could change in future periods. Carrying Amount The carrying amount of the RUs is determined using a capital allocation methodology. The allocation uses the Company's total equity at the date of valuation, which is allocated to each of the Company's businesses, including the RUs, and to the other areas of the Company not included in the RUs. The allocation is informed by internal analysis and the current target regulatory capital of the Company, to determine the allocated capital. Based on the quantitative analysis, as described above, the Company concluded in 2017 that the carrying amount of the Equipment Finance and Commercial Services RUs exceeded their estimated fair value and thus the Company recorded an impairment of the Equipment Finance and Commercial Services RUs of $247.0 million and $8.6 Intangible Assets The following table presents the gross carrying value and accumulated amortization for intangible assets, excluding fully amortized intangible assets. Intangible Assets (dollars in millions) December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Core deposit intangibles $ 126.3 $ (79.7 ) $ 46.6 $ 126.3 $ (61.7 ) $ 64.6 Trade names 24.7 (12.7 ) 12.0 24.7 (10.1 ) 14.6 Customer relationships 23.9 (16.2 ) 7.7 23.9 (13.6 ) 10.3 Other 7.4 (7.7 ) (0.3 ) 7.4 (7.7 ) (0.3 ) Total intangible assets $ 182.3 $ (116.3 ) $ 66.0 $ 182.3 $ (93.1 ) $ 89.2 The following table presents the changes in intangible assets: Intangible Assets Rollforward (dollars in millions) Core Deposit Intangibles Trade Names Customer Relationships Other Total December 31, 2017 $ 82.7 $ 17.0 $ 13.3 $ - $ 113.0 Amortization (1) (18.1 ) (2.4 ) (3.0 ) (0.3 ) (23.8 ) December 31, 2018 $ 64.6 $ 14.6 $ 10.3 $ (0.3 ) $ 89.2 Amortization (1) (18.0 ) (2.6 ) (2.6 ) - (23.2 ) December 31, 2019 $ 46.6 $ 12.0 $ 7.7 $ (0.3 ) $ 66.0 (1) The intangible asset balances primarily reflect the intangibles recognized as a result of the OneWest Bank acquisition. The largest component is related to the valuation of core deposits. Core deposit intangibles ("CDIs") represent future benefits arising from non-contractual customer relationships (e.g., account relationships with the depositors) acquired from the purchase of demand deposit accounts, including interest and non-interest bearing checking accounts, money market and savings accounts. The Company's CDI has a finite life and is amortized on a straight-line basis over the estimated useful life, with a remaining life of approximately three years. Amortization expense for the intangible assets is primarily recorded in operating expenses. Accumulated amortization totaled $116.3 million at December 31, 2019. Projected amortization for the years ended December 31, 2020 through December 31, 2024, is approximately $22.8 million, $22.0 million, $13.5 million, $3.0 million, and $3.0 million, respectively. |
Severance Liabilities
Severance Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Severance Liabilities [Abstract] | |
Severance Liabilities | NOTE 26 — SEVERANCE LIABILITIES The following table summarizes liabilities (pre-tax) related to employee severance: Severance Liabilities (dollars in millions) Number of Employees Liability December 31, 2017 538 $ 28.3 Additions and adjustments (25 ) (1.1 ) Utilization (293 ) (13.4 ) December 31, 2018 220 13.8 Additions and adjustments 36 15.1 Utilization (123 ) (11.9 ) December 31, 2019 133 $ 17.0 CIT continued to implement various organization efficiency and cost reduction initiatives and recorded a $15.1 million restructuring charge in 2019. There were no restructuring charges for 2018. The severance additions primarily relate to employee termination benefits incurred in conjunction with these initiatives. |
Parent Company Financial Statem
Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Company Financial Statements | NOTE 27 — PARENT COMPANY FINANCIAL STATEMENTS The following tables present the Parent Company only financial statements: Condensed Parent Company Only Balance Sheets (dollars in millions) December 31, December 31, 2019 2018 Assets: Cash and deposits $ 15.3 $ 17.1 Cash held at bank subsidiary 361.5 680.1 Securities purchased under agreements to resell - 100.0 Receivables from non-bank subsidiaries 2,401.1 2,435.2 Receivables from bank subsidiaries 654.8 305.5 Investment in non-bank subsidiaries 1,155.2 1,166.1 Investment in bank subsidiaries 5,266.3 5,091.0 Goodwill 46.9 46.9 Other assets 872.7 747.8 Total Assets $ 10,773.8 $ 10,589.7 Liabilities and Equity: Borrowings $ 3,916.3 $ 3,808.4 Liabilities to non-bank subsidiaries 158.6 468.9 Liabilities to bank subsidiaries 5.0 2.8 Other liabilities 354.9 363.0 Total Liabilities 4,434.8 4,643.1 Total Stockholders' Equity 6,339.0 5,946.6 Total Liabilities and Equity $ 10,773.8 $ 10,589.7 Prior period balances have been conformed to the current period presentation . Condensed Parent Company Only Statements of Income and Comprehensive Income (dollars in millions) Years Ended December 31, 2019 2018 2017 Income Interest income from nonbank subsidiaries $ 123.4 $ 113.4 $ 160.5 Interest income from bank subsidiaries 16.2 19.2 15.4 Interest and dividends on interest bearing deposits and investments 1.7 4.5 7.4 Dividends from nonbank subsidiaries 25.0 31.0 — Dividends from bank subsidiaries 356.0 218.6 359.0 Other non-interest income from subsidiaries 71.5 61.8 178.6 Other non-interest income 39.7 51.6 (127.9 ) Total income 633.5 500.1 593.0 Expenses Interest expense 202.8 222.0 324.7 Interest expense on liabilities to subsidiaries 15.4 40.5 50.3 Other non-interest expenses 156.5 189.9 499.4 Total expenses 374.7 452.4 874.4 Income (loss) before income taxes and equity in undistributed net income of subsidiaries 258.8 47.7 (281.4 ) (Benefit) provision for income taxes (160.9 ) (76.5 ) 163.4 Income (loss) before equity in undistributed net income of subsidiaries 419.7 124.2 (444.8 ) Equity in undistributed net income (loss) of bank subsidiaries 78.4 213.6 (55.6 ) Equity in undistributed net income of nonbank subsidiaries 31.8 109.3 968.6 Net income 529.9 447.1 468.2 Other Comprehensive income (loss), net of tax 126.2 (91.3 ) 53.6 Comprehensive income $ 656.1 $ 355.8 $ 521.8 Condensed Parent Company Only Statements of Cash Flows (dollars in millions) Years Ended December 31, 2019 2018 2017 Cash Flows from Operations: Net income $ 529.9 $ 447.1 $ 468.2 Equity in undistributed earnings of subsidiaries (110.2 ) (322.9 ) (1,272.0 ) Other operating activities, net (53.0 ) 1,411.1 621.5 Net cash flows provided by (used in) operations 366.7 1,535.3 (182.3 ) Cash Flows from Investing Activities: (Increase) decrease in investments in and advances to subsidiaries (250.7 ) 502.5 9,602.6 Decrease in investment securities and securities purchased under agreements to resell 100.0 50.0 250.3 Other investing activities (16.9 ) (1.8 ) — Net cash flows (used in) provided by investing activities (167.6 ) 550.7 9,852.9 Cash Flows from Financing Activities: Proceeds from the issuance of term debt 98.6 1,879.5 — Repayments of term debt — (1,854.8 ) (7,087.7 ) Net proceeds from issuance of preferred stock 195.1 — 318.0 Repurchase of common stock (340.9 ) (1,626.7 ) (3,431.9 ) Dividends paid (146.7 ) (115.9 ) (113.7 ) Net change in advances from subsidiaries (303.0 ) (376.0 ) 254.0 Other financing activities, net (22.6 ) (71.7 ) (20.7 ) Net cash flows used in financing activities (519.5 ) (2,165.6 ) (10,082.0 ) Net decrease in cash and cash equivalents (320.4 ) (79.6 ) (411.4 ) Cash and cash equivalents, beginning of period 697.2 776.8 1,188.2 Cash and cash equivalents, end of period $ 376.8 $ 697.2 $ 776.8 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | NOTE 28 — SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) The following presents quarterly data: Selected Quarterly Financial Data (dollars in millions, except per share amounts) Unaudited Fourth Quarter Third Quarter Second Quarter First Quarter Year Ended December 31, 2019 Interest income $ 481.4 $ 503.4 $ 515.5 $ 516.5 Interest expense 229.8 243.9 242.7 235.6 Provision for credit losses 22.6 26.6 28.6 33.0 Rental income on operating leases 215.3 211.7 213.0 217.7 Other non-interest income 111.3 101.0 106.1 96.8 Depreciation on operating lease equipment 76.4 76.0 76.8 79.4 Maintenance and other operating lease expenses 40.7 41.9 48.3 49.8 Operating expenses 258.5 310.8 267.8 276.1 Loss on debt extinguishment and deposit redemption 0.1 0.1 0.2 0.1 Provision (benefit) for income taxes 49.3 (26.0 ) 33.4 37.8 Income (loss) from discontinued operations, net of taxes - - 0.8 (0.3 ) Net income $ 130.6 $ 142.8 $ 137.6 $ 118.9 Net income applicable to common shareholders $ 121.1 $ 142.8 $ 128.2 $ 118.9 Income from continuing operations applicable to common shareholders $ 121.1 $ 142.8 $ 127.4 $ 119.2 Net income per diluted share $ 1.27 $ 1.50 $ 1.33 $ 1.18 Year Ended December 31, 2018 Interest income $ 492.0 $ 473.6 $ 473.6 $ 451.2 Interest expense 215.5 213.9 205.2 180.5 Provision for credit losses 31.2 38.1 32.9 68.8 Rental income on operating leases 229.8 264.3 261.3 253.6 Other non-interest income 47.5 86.2 135.4 104.7 Depreciation on operating lease equipment 79.5 78.0 77.2 76.4 Maintenance and other operating lease expenses 52.9 56.6 63.5 57.4 Operating expenses 257.9 263.3 267.5 281.3 Loss on debt extinguishment and deposit redemption 15.7 3.5 19.3 0.1 Provision for income taxes 24.9 41.3 57.4 41.3 Income (loss) from discontinued operations, net of taxes 0.1 2.1 (20.5 ) (6.7 ) Net income $ 91.8 $ 131.5 $ 126.8 $ 97.0 Net income applicable to common shareholders $ 82.3 $ 131.5 $ 117.4 $ 97.0 Income from continuing operations applicable to common shareholders $ 82.2 $ 129.4 $ 137.9 $ 103.7 Net (loss) income per diluted share $ 0.78 $ 1.15 $ 0.94 $ 0.74 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 29 — SUBSEQUENT EVENTS Mutual of Omaha Bank Acquisition On January 1, 2020, CIT acquired MOB, the savings bank subsidiary of Mutual of Omaha Insurance Company and OFHI. The acquisition enhances CIT’s deposit and commercial banking capabilities, by adding a new channel of deposits (Homeowners Association) and enhances CIT’s middle-market commercial banking through the addition of relationship banking teams and expanded product and technology solutions. CIT paid approximately $1 billion as consideration, comprised of $850 million in cash and approximately 3.1 million shares of CIT Group Inc. common stock (issued out of treasury stock and valued at approximately $141 million based on the closing market price on December 31, 2019, the last trading price before the acquisition), representing the maximum number of shares of Company common stock issuable, based on the fixed price of $48.47 per share. Total assets acquired by CIT were approximately $8.4 billion and deposits were approximately $7.0 billion. The acquisition will be accounted for as a business combination. Due to the timing of the acquisition, balances and results of operations of MOB are not included in CIT’s reported financial results in this Annual Report on Form 10-K as of or for the year ended December 31, 2019. |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Financial Information | Basis of Financial Information The accounting and financial reporting policies of CIT conform to generally accepted accounting principles ("GAAP") in the United States and the preparation of the consolidated financial statements is in conformity with GAAP which requires management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates and assumptions. Some of the more significant estimates include: allowance for loan losses and loan impairment, realizability of deferred tax assets, and goodwill. Additionally, where applicable, the policies conform to accounting and reporting guidelines prescribed by bank regulatory authorities. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include financial information related to CIT and its majority-owned subsidiaries and those variable interest entities (“VIEs”) where the Company is the primary beneficiary ("PB"). In preparing the consolidated financial statements, all significant inter-company accounts and transactions have been eliminated. Assets held in an agency or fiduciary capacity are not included in the consolidated financial statements. |
Discontinued Operations | Discontinued Operations There were no discontinued operations as of December 31, 2019. Discontinued operations as of December 31, 2018 was comprised of the Business Air business and residual activity of the Financial Freedom business, which was sold in May 2018. Although the economic benefit and risk of the business had been transferred to the buyer, certain assets and liabilities of Financial Freedom remained as the required investor consent was not received to qualify for sale treatment. In conjunction with the sale of Financial Freedom, the Company also sold its reverse mortgage portfolio comprised of loans and related other real estate owned ("OREO") assets, which was serviced by Financial Freedom and was previously reported in continuing operations. Collectively, the sale of the Financial Freedom business and the reverse mortgage portfolio is referred to as the "Financial Freedom Transaction". In July 2019, CIT obtained the final investor consent to transfer the servicer obligation to a third party and derecognized the assets, which had previously not met the accounting requirements for sale treatment, and related secured borrowing. During the third quarter, the residual assets and liabilities of discontinued operations and related income statement activity were reclassified to continuing operations. Income (loss) from discontinued operations reflects the activities of the Business Air and Financial Freedom businesses for the years ended December 31, 2019, 2018 and 2017, and Commercial Air (a component of Aerospace) for the year ended December 31, 2017. We completed the sale of our Commercial Air business on April 4, 2017. See further discussion in Note 2 – Discontinued Operations |
Loans and Leases | Loans and Leases CIT extends credit to commercial customers through a variety of financing arrangements including term loans, revolving credit facilities, finance leases and operating leases. CIT also extends credit through Consumer Loans, including residential mortgages and had a portfolio of reverse mortgages, which was sold on May 31, 2018. The amounts outstanding on term loans, Consumer Loans, revolving credit facilities and finance leases are referred to as loans. These loans, when combined with Assets Held for Sale (“AHFS”) and Operating lease equipment, net It is CIT’s expectation that the majority of the loans and leases originated will be held for the foreseeable future or until maturity. In certain situations, for example to manage concentrations and/or credit risk or where returns no longer meet specified targets, some or all of certain exposures are sold. Loans for which the Company has the intent and ability to hold for the foreseeable future or until maturity are classified as held for investment (“HFI”). If the Company no longer has the intent or ability to hold loans for the foreseeable future, then the loans are transferred to AHFS. Loans originated with the intent to sell are classified as AHFS. Loans originated and classified as HFI are recorded at amortized cost. Loan origination fees and certain direct origination costs are deferred and recognized as adjustments to interest income over the contractual lives of the related loans. Unearned income on leases and discounts and premiums on loans purchased are amortized to interest income using the effective interest method. For loans classified as AHFS, the amortization of discounts and premiums on loans purchased and unearned income ceases. Finance leases originated and classified as HFI are recorded at the aggregate future minimum lease payments plus estimated residual values less unearned finance income. Management performs periodic reviews of estimated residual values, with other than temporary impairment (“OTTI”) recognized in current period earnings. If it is determined that a loan should be transferred from HFI to AHFS, then the loan is transferred at the lower of its amortized cost basis or fair value on the date of transfer, which excludes the allowance for credit losses. Prior to the transfer, CIT applies its write-off policy to the recorded investment. If the recorded investment exceeds the loan’s fair value at the date of transfer, a valuation allowance (“VA”) is established equal to the difference between the recorded investment and fair value. Once classified as AHFS, the amount by which the amortized cost exceeds fair value is recorded as a change in the VA and is reflected as a reduction to other non-interest income. If it is determined that a loan should be transferred from AHFS to HFI, the loan is transferred at the lower of cost or fair value on the transfer date, which coincides with the date of change in management’s intent. The difference between the carrying value of the loan and the fair value, if lower, is reflected as a loan discount at the transfer date, which reduces its carrying value. Subsequent to the transfer, the discount is accreted into earnings as an increase to interest income over the life of the loan using the effective interest method. Loans acquired are initially recorded at their fair value on the acquisition date. For loans that are not considered credit impaired at the date of acquisition and for which cash flows are evaluated based on contractual terms, a premium or discount is recorded, representing the difference between the unpaid principal balance and the fair value. The discount or premium is accreted or amortized to earnings using the effective interest method as a yield adjustment over the remaining contractual terms of the loans and is recorded in Interest Income. If the loan is prepaid, the remaining discount or premium is recognized in Interest Income. If the loan is sold, the remaining discount is considered in the resulting gain or loss on sale. If the loan is subsequently classified as non-accrual, or transferred to AHFS, accretion or amortization of the discount (premium) is ceased. For purposes of income recognition, and consistent with valuation models across loan portfolios, the Company has elected not to take a position on the movement of future interest rates in the applicable model. If interest rates rise, the loans will generate higher income. If rates fall, the loans will generate lower income. Purchased Credit-Impaired Loans Purchased credit-impaired loans (“PCI loans”) were determined as of the date of purchase to have evidence of credit quality deterioration since origination, which make it probable that the Company will be unable to collect all contractually required payments (principal and interest). Evidence of credit quality deterioration as of the purchase date may include past due status, recent borrower credit scores, credit rating (probability of obligor default) and recent loan-to-value ratios. Commercial PCI Loans are accounted for as individual loans. Conversely, Consumer PCI Loans with similar common risk characteristics are pooled together for accounting purposes at the cohort level. Common risk characteristics consist of similar credit risk (e.g., delinquency status, loan-to-value, or credit risk rating) and at least one other predominant risk characteristic (e.g., loan type, collateral type, interest rate index, date of origination or term). For pooled loans, each pool is accounted for as a single asset (i.e., one unit of account) with a single composite interest rate and an aggregate expectation of cash flows for the pool. At acquisition, PCI loans are initially recorded at estimated fair value, which is determined by discounting each Commercial Loan’s or consumer pool’s principal and interest cash flows expected to be collected using a discount rate for similar instruments with adjustments that management believes a market participant would consider. The Company estimates the cash flows expected to be collected at acquisition using internal credit risk and prepayment risk models that incorporate management’s best estimate of current key assumptions, such as default rates, loss severity and prepayment speeds of the loan. For PCI loans, the discount recorded includes accretable and non-accretable components. The accretable yield is measured as the excess of the cash flows expected to be collected, estimated at the acquisition date, over the recorded investment (estimated fair value at acquisition) and is recognized in interest income over the remaining life of the loan, or pool of loans, on an effective yield basis. The difference between the cash flows contractually required to be paid, measured as of the acquisition date, over the cash flows expected to be collected is referred to as the non-accretable difference. Subsequent to acquisition, the estimates of the cash flows expected to be collected are evaluated on a quarterly basis for both Commercial PCI Loans (evaluated individually) and Consumer PCI Loans (evaluated on a pool basis). During each subsequent reporting period, the cash flows expected to be collected will be reviewed but will be revised only if it is deemed probable that a significant change has occurred. Probable and significant decreases in expected cash flows as a result of further credit deterioration result in a charge to the provision for credit losses and a corresponding increase to the allowance for loan losses. Probable increases in cash flows expected to be collected due to improved credit quality result in recovery of any previously recorded allowance for loan losses, to the extent applicable, and an increase in the accretable yield applied prospectively for any remaining increase. The accretable yield is affected by revisions to previous expectations that result in an increase in expected cash flows, changes in interest rate indices for variable rate PCI loans, changes in prepayment assumptions and changes in expected principal and interest payments and collateral values. The Company assumes a flat forward interest curve when analyzing future cash flows for the mortgage loans. Changes in expected cash flows caused by changes in market interest rates are recognized as adjustments to the accretable yield on a prospective basis. Resolutions of loans may include sales to third parties, receipt of payments in settlement with the borrower, or foreclosure of the collateral. Upon resolution, the Company’s policy is to remove an individual Consumer PCI Loan from the pool at its carrying amount. Any difference between the loans carrying amount and the fair value of the collateral or other assets received does not affect the percentage yield calculation used to recognize accretable yield on the pool. This removal method assumes that the amount received from these resolutions approximates the pool performance expectations of cash flows. The accretable yield percentage is unaffected by the resolution. Modifications or refinancing of loans accounted for within a pool do not result in the removal of those loans from the pool; instead, the revised terms are reflected in the expected cash flows within the pool of loans. Reverse Mortgages Reverse mortgage loans are contracts in which a homeowner borrows against the equity in their home and receives cash in one lump sum payment, a line of credit, fixed monthly payments for either a specific term or for as long as the homeowner lives in the home or a combination of these options. Reverse mortgages feature no recourse to the borrower, no required repayment during the borrower’s occupancy of the home (as long as the borrower complies with the terms of the mortgage), and, in the event of foreclosure, a repayment amount that cannot exceed the lesser of either the unpaid principal balance of the loan or the proceeds recovered upon sale of the home. The mortgage balance consists of cash advanced, interest compounded over the life of the loan, capitalized mortgage insurance premiums, and other servicing advances capitalized into the loan. CIT sold its reverse mortgage portfolio on May 31, 2018 in connection with the Financial Freedom Transaction. The Company’s former uninsured reverse mortgages in continuing operations that were determined to be non-PCI were accounted for in accordance with the instructions provided by the staff of the Securities and Exchange Commission (“SEC”) entitled “Accounting for Pools of Uninsured Residential Reverse Mortgage Contracts.” The insured reverse mortgages in continuing operations that were determined to be PCI were accounted for in accordance with the guidance in ASC 310-30. As such, revenue recognition and income measurement for these loans was based on expected rather than contractual cash flows, and the fair value adjustment on these loans included both accretable and non-accretable components. |
Leases | Leases On January 1, 2019, CIT adopted ASU 2016-02, Leases (Topic 842), and subsequent related ASUs using January 1, 2019 as the date of initial application. The leasing standard modifies the accounting, presentation, and disclosures for both lessees and lessors. We elected the modified retrospective transition option which allows for application of the Topic 842 guidance at the adoption date. Therefore, comparative prior period financial information was not adjusted and will continue to be reported under the previous accounting guidance of ASC 840, Leases. No cumulative-effect adjustment to retained earnings as of January 1, 2019 was necessary as a result of adopting the new standard. CIT elected the “package of practical expedients” permitted under the transition guidance which allowed the Company not to reassess its prior conclusions regarding lease identification, lease classification of existing leases, and treatment of initial direct costs on existing leases. Any lease arrangements and significant modifications entered into subsequent to the adoption date (January 1, 2019) are accounted for in accordance with the new standard. Lessee Topic 842 Accounting The leasing standard requires recognition of leases on the consolidated balance sheets as right-of-use (“ROU”) assets and lease liabilities. ROU assets represent our right to use underlying assets for the lease terms and lease liabilities represent our obligation to make lease payments arising from the leases. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. We use our estimated incremental borrowing rate in determining the present value of lease payments. CIT recognized lease liabilities, with corresponding ROU assets, based on the present value of unpaid lease payments for existing operating leases longer than twelve months as of January 1, 2019. The ROU assets were adjusted per Topic 842 transition guidance for existing lease-related balances of accrued and prepaid rent, unamortized lease incentives provided by lessors, and restructuring liabilities. As a result, CIT recognized ROU assets of approximately $210 million in Other Assets and corresponding lease liabilities of approximately $260 million in Other liabilities as of January 1, 2019. The January 1, 2019 incremental borrowing rates determined on a collateralized basis for the remaining lease terms were utilized when determining the present value of lease payments at the date of initial adoption. The Company elected the lessee practical expedient not to separate lease and non-lease components. The Company also elected the short-term lease recognition exemption and will not recognize ROU assets or lease liabilities for leases with a term less than 12 months. Operating lease cost is recognized as a single lease cost on a straight-line basis over the lease term and is recorded in Operating Expenses. Variable lease payments for common area maintenance, property taxes and other operating expenses are recognized as expense in the period when the changes in facts and circumstances on which the variable lease payments are based occur. Lessee Accounting for Periods Prior to Adoption of Topic 842 (Prior to January 1, 2019) Under ASC 840, lessee operating lease arrangements were recorded off balance sheet and ROU assets and lease liabilities were not recognized. Operating lease rent expense was recognized on a straight-line basis over the lease term and recorded in Operating Expenses. Common area maintenance, property taxes, and other operating expenses related to leased premises were also recognized in Operating Expenses, consistent with similar costs for owned locations. Lessor Topic 842 Accounting We determine lease classification at commencement date. Leases not classified as sales-type or direct financing leases are classified as operating leases. The primary accounting criteria we use that results in sales-type lease classification are (a) the lease transfers ownership of the underlying asset to the lessee by the end of the lease term, (b) the lease grants the lessee a purchase option that the lessee is reasonably certain to exercise, (c) using a seventy-five percent or more threshold, the lease term is for a major part of the remaining economic life of the underlying asset (however, we do not use this classification criterion when the lease commencement date falls within the last 25 percent of the total economic life of the underlying asset) and (d) using a ninety percent or more threshold, the present value of the sum of the lease payments and residual value guarantee from the lessee equals or exceeds substantially all of the fair value of the underlying asset. When none of the sales-type lease criteria have been met, leases are classified as direct financing leases when, using a ninety percent or more threshold, the present value of the sum of the lease payments and residual value guarantee purchased from a third party equals or exceeds substantially all of the fair value of the underlying asset. The majority of our finance leases are sales-type leases. We do not lease equipment of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. Lease components are separated from non-lease components that transfer a good or service to the customer; and the non-lease components in our lease contracts are accounted for in accordance with loan accounting guidance. However, the Company elected the operating lease practical expedient for its Rail portfolio leases to not separate non-lease components of railcar maintenance services from associated lease components. This practical expedient is available when both of the following are met: (i) the timing and pattern of transfer of the non-lease components and associated lease component are the same and (ii) the lease component, if accounted for separately, would be classified as an operating lease. Residual realization risk varies by transaction type. Finance leases bear the least risk because contractual payments usually cover approximately 90% of the equipment's cost at the inception of the lease. A significant portion of our leasing portfolios are comprised of operating leases which have higher risk because a smaller percentage of the equipment's value is covered by contractual cash flows over the term of the lease. If the market value of leased equipment decreases at a rate greater than we projected, whether due to rapid technological or economic obsolescence, unusual wear and tear on the equipment, excessive use of the equipment, recession or other adverse economic conditions, or other factors, it could adversely affect the current values and the residual values of such equipment. CIT seeks to mitigate these risks by maintaining relatively young fleet assets with wide operator bases, which can facilitate attractive lease and utilization rates. CIT manages and evaluates residual risk by performing periodic reviews of estimated residual values and monitoring levels of residual realizations. A change in estimated operating lease residual values would result in a change in future depreciation expense. A change in estimated finance lease residual values during the lease term impacts the loss allowance as the lessor considers both the lease receivable and the unguaranteed residual asset when determining the finance lease net investment loss allowance. Incremental costs of a lease that would not have been incurred if the lease had not been obtained are capitalized as initial direct costs. Property taxes paid by the lessor which are reimbursed by the lessee are considered to be lessor costs of owning the asset, and are recorded gross with revenue included in Other non-interest income and expense recorded in Operating expenses. The Company elected a lessor accounting policy election to exclude from revenue and expenses sales taxes and other similar taxes assessed by a governmental authority on lease revenue-producing transactions and collected by the lessor from a lessee. Operating Leases - Operating lease equipment is carried at cost less accumulated depreciation. Operating lease equipment is depreciated to its estimated residual value using the straight-line method over the lease term or estimated useful life of the asset. Rail equipment has estimated useful lives of 40-50 years and other equipment useful lives are generally 3-10 years. Where management’s intention is to sell the operating lease equipment, these are marked to the lower of cost or fair value and classified as AHFS. Depreciation is no longer recognized, and the assets are evaluated for impairment, with any further marks to lower of cost or fair value recorded in other non-interest income. Equipment held for sale in discontinued operations follows the same treatment, with impairment charges reflected in discontinued operations - other non-interest income Equipment received at the end of the lease, which will be sold, is marked to the lower of cost or fair value with the adjustment recorded in other noninterest income. Initial direct costs are amortized over the lease term. Finance Leases - CIT’s finance lease activity primarily relates to leasing of new equipment with the equipment purchase price equal to fair value and therefore there is no selling profit or loss at lease commencement. When there is no selling profit or loss, initial direct costs are deferred at the commencement date and included in the measurement of the net investment in the lease. A lease receivable and unguaranteed residual asset, if any, are recorded for finance leases at present value discounted using the rate implicit in the lease. The lease receivable includes lease payments not yet paid and guarantee of the residual value by the lessee or unrelated third party. Interest income is recognized over the lease term at a constant periodic discount rate on the remaining balance of the lease net investment using the rate implicit in the lease. After the commencement date, lease payments collected are applied to reduce net investment, and net investment is increased for interest income recorded. Variable lease payments that are not included in the lease net investment are recognized as income in the Consolidated Statements of Income in the period when the changes in facts and circumstances on which the variable lease payments are based occur. Lessor Accounting for Periods Prior to Adoption of Topic 842 (Prior to January 1, 2019) Lessor accounting was not fundamentally changed by ASC 842 and remains similar to the prior accounting model, with updates to align with certain changes to the lessee model (e.g., certain definitions, such as initial direct costs, have been updated) and the new revenue recognition standard. The new rules did not have a significant impact on our classification of leases as finance or operating. Under ASC 840 our finance leases typically met criteria for classification as direct financing leases; however, due to a change in lease guidance similar leases are classified as sales-type leases under ASC 842 although there continues to be no selling profit or loss at lease commencement. The primary impact to the Company is related to initial direct costs and certain property taxes. The new lease guidance has a narrower definition of initial direct costs that may be capitalized. Allocated internal costs and professional fees to negotiate and arrange the lease agreements that would have been incurred, regardless of lease execution, no longer qualify as initial direct costs. On January 1, 2019, we began to record gross operating expenses and other non-interest income for property taxes paid by CIT as lessor that are reimbursed by the lessees. |
Revenue Recognition | Revenue Recognition On January 1, 2018, CIT adopted ASU 2014-09, Revenue Recognition - Revenue from Contracts with Customers (ASC 606) "Interest Income" and "Rental Income on Operating Leases", CIT's two largest revenue items, are out of scope of the guidance, as are many other revenues relating to other financial assets and liabilities, including loans, leases, securities, and derivatives. As a result, the implementation of the new guidance was limited to certain revenue streams within Non-Interest Income, including some immaterial bank related fees and gains or losses related to the sale and disposition of leased equipment and other real estate owned (“OREO”) and requires the Company to apply certain recognition and measurement principles of ASC 606. CIT evaluated its in-scope revenue streams and concluded that ASU 2014-09 did not materially impact the current practice of revenue recognition as ASC 606 was consistent with the accounting policy being applied by the Company for those revenues. Therefore, no change in the timing or amount of income recognized was identified. CIT also determined that costs incurred to obtain or fulfill contracts and financing components relating to in-scope revenue streams were immaterial to the Company. Non-interest revenue, including amounts related to the sale and disposition of leased equipment and OREO, is recognized at an amount reflecting the consideration received, or expected to be received, when control of goods or services is transferred, which generally occurs when services are provided or control of leased equipment or OREO is liquidated. ASU 2014-09 was adopted using the modified retrospective transition method. CIT elected to apply this guidance only to contracts that were not completed at the date of the initial application. The adoption did not have a significant impact on CIT's financial statements or disclosures. No adjustment to the opening balance of retained earnings was necessary. Interest income on HFI loans is recognized using the effective interest method or on a basis approximating a level rate of return over the life of the asset. Interest income includes components of accretion of the fair value discount on loans and lease receivables recorded in connection with Purchase Accounting Adjustments (“PAA”), which are accreted using the effective interest method as a yield adjustment over the remaining contractual term of the loan and recorded in interest income. If the loan is subsequently classified as AHFS, accretion (amortization) of the discount (premium) will cease. Rental revenue on operating leases is recognized on a straight-line basis over the lease term and is included in Non-interest Income. Intangible assets related to acquisitions completed by the Company and to Fresh Start Accounting (“FSA”) adjustments that were applied as of December 31, 2009 (the Convenience Date) to adjust the carrying value of above or below market operating lease contracts to their fair value. The FSA related adjustments (net) are amortized into rental income on a straight-line basis over the remaining term of the respective lease. The recognition of interest income (including accretion) on Commercial Loans (exclusive of small ticket Commercial Loans) is suspended and an account is placed on non-accrual status when, in the opinion of management, full collection of all principal and interest due is doubtful. All future interest accruals, as well as amortization of deferred fees, costs, purchase premiums or discounts are suspended. To the extent the estimated cash flows, including fair value of collateral, does not satisfy both the principal and accrued interest outstanding, accrued but uncollected interest at the date an account is placed on non-accrual status is reversed and charged against interest income. Subsequent interest received is applied to the outstanding principal balance until such time as the account is collected, charged-off or returned to accrual status. Loans that are on cash basis non-accrual do not accrue interest income; however, payments designated by the borrower as interest payments may be recorded as interest income. To qualify for this treatment, the remaining recorded investment in the loan must be deemed fully collectable. The recognition of interest income (including accretion) on consumer mortgages and small ticket Commercial Loans is suspended, and all previously accrued but uncollected revenue is reversed, when payment of principal and/or interest is contractually delinquent for 90 days or more. Accounts, including accounts that have been modified, are returned to accrual status when, in the opinion of management, collection of remaining principal and interest is reasonably assured, and there is a sustained period of repayment performance, generally for a minimum of six months. The Company periodically modifies the terms of loans in response to borrowers’ financial difficulties. These modifications may include interest rate changes, principal forgiveness or payment deferments. Loans that are modified, where a concession has been made to the borrower, are accounted for as Troubled Debt Restructurings (“TDRs”). TDRs are generally placed on non-accrual upon their restructuring and remain on non-accrual until, in the opinion of management, collection of remaining principal and interest is reasonably assured, and upon collection of six consecutive scheduled payments. PCI loans in pools that the Company may modify as TDRs are not within the scope of the accounting guidance for TDRs. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses ("ALLL") is intended to provide for credit losses inherent in the HFI loan portfolio and is periodically reviewed for adequacy. ALLL is determined based on three key components: (1) specific allowances for loans that are impaired, based upon the value of underlying collateral or projected cash flows, or observable market price, (2) non-specific allowances for estimated losses inherent in the non-impaired portfolio based upon the expected loss over the loss emergence period, and (3) allowances for estimated losses inherent in the portfolio based upon economic risks, industry and geographic concentrations, and other factors, not in the non-specific allowance. Changes to ALLL are recorded in the Provision for Credit Losses. Determining an appropriate ALLL requires significant judgment that may change based on management’s ongoing process in analyzing the credit quality of the Company’s HFI loan portfolio. Loans are divided into the following portfolio segments, which correspond to the Company’s business segments: Commercial Banking and Consumer Banking. Within each portfolio segment, credit risk is assessed and monitored in the following classes of loans: within Commercial Banking, Commercial Finance; Real Estate Finance; Business Capital and Rail, are collectively referred to as “Commercial Loans”, and within Consumer Banking, classes include Legacy Consumer Mortgages (‘LCM”), and Consumer and Community Banking, collectively referred to as “Consumer Loans”. ALLL is estimated based upon the loans in the respective class. For each portfolio, impairment is generally measured individually for larger non-homogeneous loans ($500 thousand or greater) and collectively for groups of smaller loans with similar characteristics or for designated pools of PCI loans based on decreases in cash flows expected to be collected subsequent to acquisition. Loans acquired were initially recorded at estimated fair value at the time of acquisition. Expected credit losses were included in the determination of estimated fair value, no allowance was established on the acquisition date. |
Allowance Methodology | Allowance Methodology Commercial Loans With respect to commercial portfolios, the Company monitors credit quality indicators, including expected and historical losses and levels of, and trends in, past due loans, non-performing assets and impaired loans, collateral values and economic conditions. Commercial Loans are graded according to the Company’s internal rating system with respect to probability of default (“PD”) and loss given default (“LGD”) (severity) based on various risk factors. The non-specific allowance is determined based on the estimated PD, which reflects the borrower’s financial strength, the severity of loss in the event of default, considering the quality of the underlying collateral, and other borrower specific considerations. The PD and severity are derived through historical observations of default and subsequent losses within each risk grading. When loans are template graded at underwriting, or when updated periodically, a model is run to generate a risk rating. The model incorporates both internal and external historical default and loss data to develop loss rates for each risk rating. The risk rating assigned by the model can be adjusted as a result of borrower specific facts that in management’s judgment warrant a modification of the modelled risk rating to arrive at the final approved risk ratings. A specific allowance is also established for impaired Commercial Loans and Commercial Loans modified in a TDR. Refer to the Impairment of Loans Consumer Loans For residential mortgages, the Company develops a loss reserve factor by deriving the projected lifetime losses then adjusting for losses expected to be specifically identified within the loss emergence period. The key drivers of the projected lifetime losses include the type of loan, type of product, delinquency status of the underlying loans, loan-to-value and/or debt-to-income ratios, geographic location of the collateral, and any guarantees. Other Allowance Factors If Commercial or Consumer Loan losses are reimbursable by the Federal Deposit Insurance Corporation (“FDIC”) under the loss sharing agreement, the recorded provision is partially offset by any benefit expected to be derived from the related indemnification asset subject to management’s assessment of the collectability of the indemnification asset and any contractual limitations on the indemnified amount. See Indemnification Assets With respect to assets transferred from HFI to AHFS, a write-down of the recorded investment is recognized, to the extent the carrying value exceeds the fair value and the difference relates to credit quality. An approach similar to the ALLL is utilized to calculate a reserve for losses related to unfunded loan commitments and deferred purchase commitments. A reserve for unfunded loan commitments is maintained to absorb estimated probable losses related to these facilities. The adequacy of the reserve is determined based on periodic evaluations of the unfunded credit facilities, including an assessment of the probability of commitment usage, credit risk factors for loans outstanding to these same customers, and the terms and expiration dates of the unfunded credit facilities. The reserve for unfunded loan commitments and deferred purchase commitments are recorded as a liability on the Consolidated Balance Sheet. Net adjustments to the reserve for unfunded loan commitments and deferred purchase commitments are included in the provision for credit losses. The allowance policies described above relate to specific and non-specific allowances, and the impaired loans and charge-off policies that follow are applied across the portfolio segments and loan classes therein. Given the nature of the Company’s business, the specific allowance relates primarily to the Commercial Banking segments. The non-specific allowance, which considers the Company’s internal system of PD and loss severity ratings for Commercial Loans, among other factors, is applicable to both Commercial and Consumer Loans. Additionally, divisions in Commercial Banking and Consumer Banking segments also utilize methodologies under ASC 310-30 for PCI loans, as discussed below. PCI Loans See Purchased Credit-Impaired Loans |
Past Due and Non-Accrual Loans | Past Due and Non-Accrual Loans A loan is considered past due for financial reporting purposes if default of contractual principal or interest exists for a period of 30 days or more. Past due loans consist of loans that are still accruing interest as well as loans on non-accrual status. Loans are placed on non-accrual status when the financial condition of the borrower has deteriorated and payment in full of principal or interest is not expected or the scheduled payment of principal and interest has been delinquent for 90 days or more, unless the loan is both well secured and in the process of collection. PCI loans are written down at acquisition to their fair value using an estimate of cash flows deemed to be probable of collection. Accordingly, such loans are no longer classified as past due or non-accrual even though they may be contractually past due because we expect to fully collect the new carrying values of these loans. |
Impairment of Loans | Impairment of Loans Impairment occurs when, based on current information and events, it is probable that CIT will be unable to collect all amounts due according to contractual terms of the agreement. Impairment is measured as the shortfall between estimated value and recorded investment in the loan, with the estimated value determined using fair value of collateral and other cash flows if the loan is collateralized, the present value of expected future cash flows discounted at the contract’s effective interest rate, or observable market prices. Impaired loans of $500 thousand or greater that are placed on non-accrual status, largely in Commercial Finance, Real Estate Finance, and Business Capital, are subject to periodic individual review by the Company’s problem loan management (“PLM”) function. The Company excludes certain loan portfolios from its impaired loans disclosures as charge-offs are typically determined and recorded for such loans beginning at 90-150 days of contractual delinquency. These excluded loan portfolios include small-ticket loans, primarily in Business Capital and PCI loans primarily in Consumer Banking, as well as short-term factoring receivables in Commercial Finance. Loans that are within the scope of the accounting guidance for TDRs are all included in our impaired loan disclosures. |
Charge-off of Loans | Charge-off of Loans Charge-offs on loans are recorded after considering such factors as the borrower’s financial condition, the value of underlying collateral and guarantees (including recourse to dealers and manufacturers), and the status of collection activities. Such charge-offs are deducted from the carrying value of the related loans. This policy is largely applicable in the loan classes within Commercial Banking. In general, charge-offs of large ticket Commercial Loans ($500 thousand or greater) are determined based on the facts and circumstances related to the specific loan and the underlying borrower and the use of judgment by the Company. Charge-offs of small ticket Commercial Loans are recorded beginning at 90-150 days of contractual delinquency. Charge-offs of Consumer Loans are recorded beginning at 120 days of delinquency. The value of the underlying collateral will be considered when determining the charge-off amount if repossession is assured and in process. Charge-offs on loans originated are reflected in the provision for credit losses. In the event of a partial charge-off on loans with a PAA, the charge-off is first allocated to the respective loan’s discount. Then, to the extent the charge-off amount exceeds such discount, a provision for credit losses is recorded. Collections on accounts charged off post- acquisition are recorded as recoveries in the provision for credit losses. Collections on accounts that exceed the balance recorded at the date of acquisition or that were previously charged off prior to transfer to AHFS are recorded as recoveries in other non-interest income. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets A review for impairment of long-lived assets, such as operating lease equipment, is performed at least annually or when events or changes in circumstances indicate that the carrying amount of long-lived assets may not be recoverable. Impairment of long-lived assets is determined by comparing the carrying amount to future undiscounted net cash flows expected to be generated. If a long-lived asset is impaired, the impairment is the amount by which the carrying amount exceeds the fair value of the long-lived asset. Fair value is based upon discounted cash flow analysis and available market data. Current lease rentals, as well as relevant and available market information (including third party sales for similar equipment and published appraisal data), are considered both in determining undiscounted future cash flows when testing for the existence of impairment and in determining estimated fair value in measuring impairment. Depreciation expense is adjusted when the projected fair value at the end of the lease term is below the projected book value at the end of the lease term. Assets to be disposed of are included in AHFS in the Consolidated Balance Sheet and are reported at the lower of the cost or fair market value less disposal costs (“LOCOM”). |
Securities Purchased Under Agreement to Resell | Securities Purchased Under Agreement to Resell Securities purchased under agreement to resell (“reverse repos”) are accounted for as collateralized financing transactions as the terms of purchase agreement do not qualify for sale accounting and are therefore recorded at the amount of cash advanced. Accrued interest receivables are recorded in other assets. Interest earned is recorded in interest income. Reverse repos are generally collateralized by securities issued or guaranteed by the US Treasury, US Government/sponsored agencies and certain international agencies. The fair value of collateral is monitored daily and additional collateral is obtained or returned for margin maintenance purposes. Collateral accepted under reverse repo transactions is not permitted by contract to be sold or repledged. |
Investments | Investments Effective January 1, 2018, CIT adopted ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities CIT adopted this standard with a cumulative-effect adjustment to the balance sheet as of the adoption date. The cumulative-effect adjustment resulted in a decrease in retained earnings due to the reclassification of $1.1 million of unrealized losses from accumulated other comprehensive loss to the opening retained earnings in 2018. Investments in debt securities that have readily determinable fair values not classified as trading securities, investment securities carried at fair value with changes recorded in net income, or as held-to-maturity (“HTM”) securities are classified as AFS securities. Debt securities classified as AFS are carried at fair value with changes in fair value reported in AOCI, a component of stockholders’ equity, net of applicable income taxes. Mortgage-backed securities are classified as either AFS or securities carried at fair value with changes recorded in net income. Debt and marketable equity security purchases and sales are recorded as of the trade date. Realized gains and losses on sales are included in other non-interest income on a specific identification basis, and interest income on AFS securities is included within Other interest and dividend income. Credit-related declines in fair value that are determined to be OTTI are immediately recorded in earnings. Debt securities classified as HTM represent securities that the Company has both the ability and the intent to hold until maturity and are carried at amortized cost. Interest on such securities is included in other interest and dividends. Derivatives and Hedging (Topic 815) -Targeted Improvements to Accounting for Hedging Activities Debt securities classified as AFS that had evidence of credit deterioration as of the acquisition date and for which it was probable that the Company would not collect all contractually required principal and interest payments were classified as PCI debt securities. Subsequently, the accretable yield (based on the cash flows expected to be collected in excess of the recorded investment or fair value) is accreted to interest income using an effective interest method for PCI securities and securities carried at fair value with changes recorded in net income. The Company uses a flat interest rate forward curve for purposes of applying the effective interest method to PCI securities. On a quarterly basis, the cash flows expected to be collected are reviewed and updated. The expected cash flow estimates take into account relevant market and economic data as of the end of the reporting period including, for example, for securities issued in a securitization, underlying loan-level data, and structural features of the securitization, such as subordination, excess spread, overcollateralization or other forms of credit enhancement. OTTI with credit-related losses are recognized as permanent write-downs, while other changes in expected cash flows (e.g., significant increases and contractual interest rate changes) are recognized through a revised accretable yield in subsequent periods. The non-accretable discount is recorded as a reduction to the investments and will be reclassified to accretable discount should expected cash flows improve or used to absorb incurred losses as they occur. Equity securities without readily determinable fair values are generally carried at cost or reflect the equity method of accounting. Non-marketable Evaluating Investments for OTTI An unrealized loss exists when the current fair value of an individual debt security is less than its amortized cost basis. Unrealized losses that are determined to be temporary in nature are recorded, net of tax, in AOCI for AFS securities, while such losses related to HTM securities are not recorded, as these investments are carried at their amortized cost. Unrealized losses on securities carried at fair value would be recorded through earnings as part of the total change in fair value. The Company conducts and documents periodic reviews of all securities with unrealized losses to evaluate whether the impairment is other than temporary. Under the guidance for debt securities, OTTI is recognized in earnings for debt securities that the Company has an intent to sell or that the Company believes it is more-likely-than-not that it will be required to sell prior to the recovery of the amortized cost basis. For debt securities classified as HTM that are considered to have OTTI that the Company does not intend to sell and it is more likely than not that the Company will not be required to sell before recovery, the OTTI is separated into an amount representing the credit loss, which is recognized in other non-interest income in the Consolidated Statements of Income, and the amount related to all other factors, which is recognized in other comprehensive income (“ OCI”). OTTI on debt securities classified as AFS are recognized in other non-interest income in the Consolidated Statements of Income in the period determined. Impairment is evaluated and to the extent it is credit related amounts are reclassified out of AOCI to other non-interest income. If it is not credit related then, the amounts remain in AOCI. Amortized cost is defined as the original purchase cost, plus or minus any accretion or amortization of a purchase discount or premium. Regardless of the classification of the securities as AFS or HTM, the Company assesses each investment with an unrealized loss for impairment. Factors considered in determining whether a loss is temporary include: • the length of time that fair value has been below cost; • the severity of the impairment or the extent to which fair value has been below cost; • the cause of the impairment and the financial condition and the near-term prospects of the issuer; • activity in the market of the issuer that may indicate adverse credit conditions; and • the Company’s ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery. The Company’s review for impairment generally includes identification and evaluation of investments that have indications of possible impairment, in addition to: • analysis of individual investments that have fair values less than amortized cost, including consideration of the length of time the investment has been in an unrealized loss position and the expected recovery period; • discussion of evidential matter, including an evaluation of factors or triggers that could cause individual investments to qualify as having OTTI and those that would not support OTTI; and • documentation of the results of these analyses, as required under business policies. Investments in Restricted Stock As a condition of membership, the Company owns capital stock in both the Federal Home Loan Bank (“FHLB”) of San Francisco and the FRB. The Company’s ownership of capital stock in the FHLB is based upon its outstanding FHLB advances whereas the FRB stock owned is based on a specified ratio relative to the Company’s capital. FHLB and FRB stock may only be sold back to the member institutions at its carrying value and cannot be sold to other parties. For FHLB stock, cash dividends are recorded within other interest and dividends when declared by the FHLB. For FRB stock, the Company is legally entitled (without declaration) to a specified dividend paid semi-annually. Dividends are recorded when received in other interest and dividends in the Consolidated Statements of Income. Due to the restricted ownership requirements, the Company accounts for its investments in FHLB and FRB stock at cost, as nonmarketable equity stock. Purchases and redemptions of restricted stock are reflected in the investing section of the Consolidated Statements of Cash Flows. Impairment reviews of these investments are completed at least annually, or when events or circumstances indicate that their carrying amounts may not be recoverable. The Company’s impairment evaluation considers the long-term nature of the investments, the liquidity position of the member institutions, its recent dividend declarations and the intent and ability to hold these investments for a period of time sufficient to ultimately recover the Company’s recorded investment. |
Indemnification Assets | Indemnification Assets In connection with the OneWest Transaction, CIT assumed the loss sharing agreements (“LSAs”) with the FDIC related to its acquisitions of IndyMac Federal Bank, FSB (“IndyMac”), First Federal Bank of California, FSB (“First Federal”) and La Jolla Bank, FSB (“La Jolla”). The LSAs are accounted for as indemnification assets and were initially recognized at estimated fair value as of the acquisition date based on the discounted present value of expected future cash flows under the respective LSAs pursuant to ASC 805. The IndyMac LSA expired in March 2019, the First Federal LSA expired in December 2019 and the LaJolla LSA expires in February 2020. On a subsequent basis, the indemnification asset is measured on the same basis of accounting as the indemnified loans (e.g., as PCI loans under the effective yield method) subject to the lesser of the contractual term of the LSA and remaining life of the indemnified item. For PCI loans with an associated indemnification asset, if the increase in expected cash flows for the covered loans is recognized through a higher yield, a lower and potentially negative yield is applied to the related indemnification asset to mirror an accounting offset for the indemnified loans and recognized in interest income on loans over the lesser of the contractual term of the indemnification agreement or the remaining life of the indemnified loans. Separate from mirror accounting, the indemnification asset is assessed for collectability. Management monitors the realizability of the qualifying losses submitted to the FDIC based on the eligibility requirements pursuant to the terms of the contract. Any amount deemed not collectable from the FDIC is recognized as an impairment charge within other non-interest income. For further discussion, see Note 3 – Loans. In addition, the Company recorded a separate FDIC true-up liability for an estimated payment due to the FDIC at 45 days following the expiry of the La Jolla LSA (April 2020), given the estimated cumulative losses of the acquired covered assets are projected to be lower than the cumulative losses originally estimated by the FDIC at inception of the LSA. The true-up liability represents contingent consideration to the FDIC and is re-measured at estimated fair value on a quarterly basis, with the changes in fair value recognized in noninterest expense. There was no FDIC true-up liability recorded in connection with the First Federal or IndyMac transaction. For further discussion, see Note 13 – Fair value. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company’s goodwill primarily represents the excess of the purchase prices paid for acquired businesses over the respective fair value of net asset values acquired. The goodwill is assigned to reporting units (“RUs”) at the date the goodwill is initially recorded. Once the goodwill is assigned to the RU, it no longer retains its association with a particular transaction, and all of the activities within the RU, whether acquired or internally generated, are available to support the value of goodwill. A portion of the Goodwill balance also resulted from the excess of reorganization equity value over the fair value of tangible and identifiable intangible assets, net of liabilities, in connection with the Company’s emergence from bankruptcy in December 2009. CIT early adopted ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) Goodwill is not amortized but it is subject to impairment testing for each RU on an annual basis, or more often if events or circumstances indicate there may be impairment. The Company follows guidance in ASC 350 , Intangibles - Goodwill and Other If the Company does not perform the qualitative assessment, or upon performing the qualitative assessment, concludes that it is more likely than not that the fair value of a RU is less than its carrying amount, CIT would be required to perform the quantitative goodwill impairment test for that RU. The quantitative goodwill impairment test involves comparing the fair value of the RU with its carrying value, including goodwill as measured by allocated equity. If the fair value of the RU exceeds its carrying value, goodwill in that unit is not considered impaired. However, if the carrying value exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that RU. RU fair values are primarily estimated using discounted cash flow models. Goodwill and intangible assets relate to acquisitions and the remaining amount from FSA adjustments. Intangible assets have finite lives, and, depending on the component, are amortized on an accelerated or straight-line basis over the estimated useful lives. Amortization expense for the intangible assets is recorded in operating expenses. The Company reviews intangible assets for impairment annually or when events or circumstances indicate that their carrying amounts may not be recoverable. Impairment is recognized by writing down the asset to the extent that the carrying amount exceeds the estimated fair value, with any impairment recorded in operating expense. See Note 25 – Goodwill and Intangible Assets |
Other Assets | Other Assets Tax Credit Investments The Company has investments in limited liability entities that were formed to operate qualifying affordable housing projects, and other entities that make equity investments, provide debt financing or support community-based investments in tax-advantaged projects. Certain affordable housing investments qualify for credit under the Community Reinvestment Act (“CRA”), which requires regulated financial institutions to help meet the credit needs of the local communities in which they are chartered, particularly in neighborhoods with low or moderate incomes. These tax credit investments provide tax benefits to investors primarily through the receipt of federal and/or state income tax credits or tax benefits in the form of tax deductible operating losses or expenses. The Company invests as a limited partner and its ownership amount in each limited liability entity varies. As a limited partner, the Company is not the PB as it does not meet the power criterion, i.e., it has no power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and has no direct ability to unilaterally remove the general partner. Accordingly, the Company is not required to consolidate these entities on its financial statements. For further discussion on VIEs, see Note 9 – Variable Interest Entities. Effective in the fourth quarter of 2017, CIT changed its accounting policy for Low Income Housing Tax Credit ("LIHTC") investments from the equity method to the proportional amortization method as it was management's determination to be the preferable method. The proportional amortization method provides an improved presentation for the reporting of these investments by presenting the investment performance net of taxes as a component of income tax expense (benefit), which more fairly represents the economics and provides users with a better understanding of the returns from such investments than the prior equity method. Prior to the accounting change, the existing LIHTC investments represented primarily the acquired investments from the OneWest acquisition. As the accounting change had an immaterial impact to prior period financial statements, the effect of the change was recognized in the fourth quarter of 2017 with a net income decrease of $8.8 million (increase of $ 29.4 million in other non-interest income with a corresponding increase of $ 38.2 million in provision for income taxes) with a reduction to the tax credit investments by approximately $ 10.5 million (within Other Assets) and increase to Deferred tax asset of $ 1.8 million recognized in the quarter ended December 31, 2017. Tax credit investments are evaluated for potential impairment at least annually, or more frequently when events or conditions indicate that it is probable that the Company will not recover its investment. Potential indicators of impairment might arise when there is evidence that some or all tax credits previously claimed by the limited liability entities would be recaptured, or that expected remaining credits would no longer be available to the limited liability entities. If an investment is determined to be impaired, it is written down to its estimated fair value and the new cost basis of the investment is not adjusted for subsequent recoveries in value. These investments are included within other assets and any impairment loss would be recognized in other non-interest income. Other Real Estate Owned Other real estate owned (“OREO”) represents collateral acquired from the foreclosure of secured loans and is being actively marketed for sale. These assets are initially recorded at the lower of cost or fair value less disposition costs. Estimated fair value is generally based upon independent appraisals or broker price opinions, which are then modified based on assumptions and expectations that are determined by management. Any write-down as a result of differences between carrying and fair value on the date of transfer from loan classification is charged to the allowance for credit losses. Subsequently, the assets are recorded at the lower of its carrying value or estimated fair value less disposition costs. If the property or other collateral has lost value subsequent to foreclosure, a VA (contra asset) is established, and the charge is recorded in other non-interest income. OREO values are reviewed on a quarterly basis and subsequent declines in estimated fair value are recognized in earnings in the current period. Holding costs are expensed as incurred and reflected in operating expenses. Upon disposition of the property, any difference between the proceeds received and the carrying value is booked to gain or loss on disposition recorded in other non-interest income. Property and Equipment Property and equipment are included in other assets and are carried at cost less accumulated depreciation and amortization. Depreciation is expensed using the straight-line method over the estimated service lives of the assets. Estimated service lives generally range from 3 to 7 years for furniture, fixtures and equipment and 20 to 40 years for buildings. Leasehold improvements are amortized over the term of the respective lease or the estimated useful life of the improvement, whichever is shorter. Property and equipment that are held to be used are assessed for impairment where indications exist that their carrying amounts are not recoverable. The carrying amount of a fixed asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Fixed assets are impaired when their carrying amounts are not recoverable and exceed their fair values. An impairment loss is measured as the amount by which the carrying amount of a fixed asset exceeds its fair value. The related asset must then be written down and its depreciation adjusted prospectively over the asset’s remaining useful life. Where an impairment loss is recognized, the adjusted carrying amount of an asset will be its new cost basis. For a depreciable asset, the new cost basis is depreciated (amortized) over the remaining useful life of that asset. Restoration of a previously recognized impairment loss is prohibited. Servicing Advances The Company is required to make servicing advances in the normal course of servicing mortgage loans. These advances include customary, reasonable and necessary out-of-pocket costs incurred in the performance of its servicing obligation. They include advances related to mortgage insurance premiums, foreclosure activities, funding of principal and interest with respect to mortgage loans held in connection with a securitized transaction and taxes and other assessments which are or may become a lien upon the mortgage property. Servicing advances are generally reimbursed from cash flows collected from the loans. A receivable is recognized for the advances that are expected to be reimbursed, while a loss is recognized in operating expenses for advances deemed uncollectable. Advances not collected are generally due to payments made in excess of the limits established by the investor or as a result of servicing errors. For our owned loans, CIT’s policy is to write-off any outstanding servicing advances when the underlying loans are non-performing. For loans serviced for others, servicing advances are accrued through liquidation regardless of delinquency status. Any accrued amounts that are deemed uncollectible at liquidation are written off against existing reserves. Any amounts outstanding 180 days post liquidation are written off against established reserves. |
Derivative Financial Instruments | Derivative Financial Instruments The Company manages economic risk and exposure to interest rate and foreign currency risk through derivative transactions in over-the-counter markets with other financial institutions. The Company also offers derivative products to its customers in order for them to manage their interest rate and currency risks. The Company does not enter into derivative financial instruments for speculative purposes. Derivatives utilized by the Company may include swaps, forward settlement contracts and options contracts. A swap agreement is a contract between two parties to exchange cash flows based on specified underlying notional amounts, assets and/or indices. Forward settlement contracts are agreements to buy or sell a quantity of a financial instrument, index, currency or commodity at a predetermined future date, and rate or price. An option contract is an agreement that gives the buyer the right, but not the obligation, to buy or sell an underlying asset from or to another party at a predetermined price or rate over a specific period of time. CIT early adopted ASU 2017-12, Derivatives and Hedging (Topic 815) -Targeted Improvements to Accounting for Hedging Activities The hedging guidance better aligns the Company’s financial reporting for hedging activities with the economic objectives of those activities and simplifies the application of the hedge accounting model. Among other things, ASU 2017-12: (a) expanded the types of transactions eligible for hedge accounting; (b) eliminated the separate measurement and presentation of hedge ineffectiveness; (c) simplified the requirements around the assessment of hedge effectiveness; (d) provided companies more time to finalize hedge documentation; and (e) enhanced presentation and disclosure requirements. The Company documents, at inception, all relationships between hedging instruments and hedged items, as well as the risk management objectives and strategies for undertaking various hedges. Upon executing a derivative contract, the Company designates the derivative as either a qualifying hedge or non-qualifying hedge. The designation may change based upon management’s reassessment of circumstances. Upon de-designation or termination of a hedge relationship, if a de-designated derivative instrument continues to be held, changes in fair value of the derivative are reflected in earnings. For a fair value hedge, the basis adjustment on the hedged item is amortized to earnings over the remaining contractual life of the hedged item. For a net investment hedge, the amounts deferred remain in AOCI until the net investment is sold or liquidated. The Company utilizes derivative instruments to hedge the exposure to changes in fair value of assets and liabilities. These transactions are designated as fair value hedges and gains and losses on derivatives qualify for fair value hedge and hedged items attributable to the hedged risk are recognized in earnings. The Company presents the entire change in the fair value of the hedging instrument in the same income statement line as the earnings effect of the hedged item. The Company utilizes foreign currency forward contracts to hedge net investments in foreign operations. These transactions are classified as foreign currency net investment hedges with resulting gains and losses reflected in AOCI. For hedges of foreign currency net investment positions, the “forward” method is applied whereby effectiveness is assessed and measured based on the amounts and currencies of the individual hedged net investments versus the notional amounts and underlying currencies of the derivative contract. For those hedging relationships where the critical terms of the underlying net investment and the derivative are identical, and the credit-worthiness of the counterparty to the hedging instrument remains sound, there is an expectation of no hedge ineffectiveness so long as those conditions continue to be met. The Company uses foreign currency forward contracts, interest rate swaps, and options to hedge interest rate and foreign currency risks arising from its asset and liability mix. These are treated as economic hedges. The Company also provides interest rate derivative contracts to support the business requirements of its customers (“customer-related positions”). The derivative contracts include interest rate swap agreements and interest rate cap and floor agreements wherein the Company acts as a seller of these derivative contracts to its customers. To mitigate the market risk associated with these customer derivatives, the Company enters into similar offsetting positions with broker-dealers. CIT has both bought and sold credit protection in the form of participations on interest rate swaps (risk participations). These risk participations were entered into in the ordinary course of business to facilitate customer credit needs. Swap participations where CIT has sold credit protection have maturities ranging between 2020 and 2040 and may require CIT to make payment to the counterparty if the customer fails to make payment on any amounts due to the counterparty upon early termination of the swap transaction. All derivative instruments are recorded at their respective fair value. Derivative instruments that qualify for hedge accounting are presented in the balance sheet at their fair values in other assets or other liabilities. For qualifying derivatives with periodic interest settlements, e.g. interest rate swaps, interest income or interest expense is reported as a separate line item in the Consolidated Statements of Income. Derivatives that do not qualify for hedge accounting are also presented in the Balance Sheet in other assets or other liabilities, but with their resulting gains or losses recognized in other non-interest income. For non-qualifying derivatives with periodic interest settlements, the Company reports interest income with other changes in fair value in other non-interest income. Fair value is based on dealer quotes, pricing models, discounted cash flow methodologies, or similar techniques for which the determination of fair value may require significant management judgment or estimation. The fair value of the derivative is reported on a gross-by-counterparty basis. Valuations of derivative assets and liabilities reflect the value of the instrument including the Company’s and counterparty’s credit risk. CIT is exposed to credit risk to the extent that the counterparty fails to perform under the terms of a derivative. Losses related to credit risk are reflected in other non-interest income. The Company manages this credit risk by requiring that all derivative transactions entered into as hedges be conducted with counterparties rated investment grade at the initial transaction by nationally recognized rating agencies, and by setting limits on the exposure with any individual counterparty. In addition, pursuant to the terms of the Credit Support Annexes between the Company and its counterparties, CIT may be required to post collateral or may be entitled to receive collateral in the form of cash or highly liquid securities depending on the valuation of the derivative instruments as measured on a daily basis. |
Fair Value | Fair Value Fair Value Hierarchy CIT measures the fair value of its financial assets and liabilities in accordance with ASC 820, Fair Value Measurements • Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that are accessible at the measurement date. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain other securities that are highly liquid and are actively traded in over-the-counter markets; • Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes derivative contracts and certain loans held-for-sale; • Level 3 - Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments and certain Commercial and Consumer loans whose value is determined using valuation models, discounted cash flow methodologies or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category generally includes highly structured or long-term derivative contracts and structured finance securities where independent pricing information cannot be obtained for a significant portion of the underlying assets or liabilities. Valuation Process The Company has various processes and controls in place to ensure that fair value is reasonably estimated. The Company generally determines the estimated fair value of Level 3 assets and liabilities by using internally developed models and, to a lesser extent, prices obtained from third-party pricing services or broker dealers (collectively, third party vendors). The Company’s internally developed models primarily consist of discounted cash flow techniques, which require the use of relevant observable and unobservable inputs. Unobservable inputs are generally derived from actual historical performance of similar assets or are determined from previous market trades for similar instruments. These unobservable inputs include discount rates, default rates, loss severity and prepayment rates. Internal valuation models are subject to review prescribed by the Company’s model validation policy that governs the use and control of valuation models used to estimate fair value. This policy requires review and approval of significant models by the Company’s model review group, who are independent of the business units and perform model validation. Procedures and controls are in place to ensure new and existing models are subject to periodic validations by the Independent Model Validation Group (“IMV”). Model validation assesses the adequacy and appropriateness of the model, including reviewing its processing components, logic and output results and supporting model documentation. These procedures are designed to provide reasonable assurance that the model is appropriate for its intended use and performs as expected. Periodic re-assessments of models are performed to ensure that they are continuing to perform as designed. The Company updates model inputs and methodologies periodically as a result of the monitoring procedures in place. Oversight of the IMV is provided by the Model Governance Committee (“MGC”). All internal valuation models are subject to ongoing review by business unit level management. More complex models, such as those involved in the fair value analysis of financial instruments, are subject to additional oversight, at least quarterly, by the Company’s Valuation Reserve Working Group (“VRWG”), which consists of senior management and subject-matter experts. For valuations involving the use of third party vendors for pricing of the Company’s assets and liabilities, the Company performs due diligence procedures to ensure that the information obtained, and valuation techniques used are appropriate. The Company monitors and reviews the results (e.g., non-binding broker quotes and prices) from these third-party vendors to ensure the estimated fair values are reasonable. Although the inputs used by the third-party vendors are generally not available for review, the Company has procedures in place to provide reasonable assurance that the relied upon information is complete and accurate. Such procedures may include, as available and applicable, comparison with other pricing vendors, corroboration of pricing by reference to other independent market data and investigation of prices of individual assets and liabilities. Fair Value Option Certain MBS are carried at fair value with changes recorded in net income. Unrealized gains and losses are reflected as part of the overall changes in fair value. The Company recognizes interest income on an effective yield basis over the expected remaining life under the accretable yield method pursuant to ASC 310-30. Unrealized and realized gains or losses are reflected in other non-interest income. The determination of fair value for these securities is discussed in Note 13 – Fair Value |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the expected future taxation of events that have been reflected in the consolidated financial statements. Deferred tax assets and liabilities are determined based on the differences between the book values and the tax basis of particular assets and liabilities, using tax rates in effect for the years in which the differences are expected to reverse. A VA is provided to reduce the reported amount of any net deferred tax assets of a reporting entity if, based upon the relevant facts and circumstances, it is more likely than not that some or all of the deferred tax assets will not be realized. Additionally, in certain situations, it may be appropriate to write-off the deferred tax asset against the VA. This reduces the VA and the amount of the respective gross deferred tax asset that is disclosed. A write-off might be appropriate if there is only a remote likelihood that the reporting entity will ever utilize its respective deferred tax assets, thereby eliminating the need to disclose the gross amounts. The Company is subject to the income tax laws of the United States, its states and municipalities and those of the foreign jurisdictions in which the Company operates. These tax laws are complex, and the manner in which they apply to the taxpayer’s facts is sometimes open to interpretation. Given these inherent complexities, the Company must make judgments in assessing the likelihood that a beneficial income tax position will be sustained upon examination by the taxing authorities based on the technical merits of the tax position. An income tax benefit is recognized only when, based on management’s judgment regarding the application of income tax laws, it is more likely than not that the tax position will be sustained upon examination. The amount of benefit recognized for those tax positions that meet the “more-likely-than-not” recognition threshold is the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company adjusts the level of unrecognized tax benefits when there is new information available to assess the likelihood of the outcome. Liabilities for uncertain income tax positions are included in current taxes payable, which is reflected in accrued liabilities and payables. Accrued interest and penalties for unrecognized tax positions are recorded in income tax expense. See Note 19 – Income Taxes |
Other Comprehensive Income/Loss | Other Comprehensive Income/Loss Other Comprehensive Income/Loss includes unrealized gains and losses, unless other than temporarily impaired, on AFS debt investments, foreign currency translation adjustments for both net investment in foreign operations and related derivatives designated as hedges of such investments, changes in fair values of derivative instruments designated as hedges of future cash flows and certain pension and postretirement benefit obligations, all net of tax. |
Foreign Currency Translation | Foreign Currency Translation The Company has limited operations outside the U.S., primarily in Canada. The functional currency for foreign operations is generally the local currency. The value of assets and liabilities of the foreign operations is translated into U.S. dollars at the rate of exchange in effect at the balance sheet date. Revenue and expense items are translated at the average exchange rates during the year. The resulting foreign currency translation gains and losses, as well as offsetting gains and losses on hedges of net investments in foreign operations, are reflected in AOCI. Transaction gains and losses resulting from exchange rate changes on transactions denominated in currencies other than the functional currency are included in other non-interest income. |
Pension and Other Postretirement Benefit | Pension and Other Postretirement Benefits CIT has both funded and unfunded noncontributory defined benefit pension and postretirement plans covering certain U.S. and non-U.S. employees, each of which is designed in accordance with the practices and regulations in the related countries. Recognition of the funded status of a benefit plan, which is measured as the difference between plan assets at fair value and the benefit obligation, is included in the Balance Sheet. The Company recognizes as a component of OCI, net of tax, the net actuarial gains or losses and prior service cost or credit that arise during the period but are not recognized as components of net periodic benefit cost in the Consolidated Statements of Income. |
Variable Interest Entities | Variable Interest Entities A VIE is a corporation, partnership, limited liability company, or any other legal structure used to conduct activities or hold assets. These entities lack sufficient equity investment at risk to permit the entity to finance its activities without additional subordinated financial support from other parties; have equity owners who either do not have voting rights or lack the ability to make significant decisions affecting the entity’s operations; and/or have equity owners that do not have an obligation to absorb the entity’s losses or the right to receive the entity’s returns. ASC 810 requires qualified special purpose entities to be evaluated for consolidation and addressed the approach for determining a VIE’s PB and required companies to more frequently reassess whether they must consolidate VIEs. The PB is the party that has both (1) the power to direct the activities of an entity that most significantly impact the VIE’s economic performance; and (2) through its interests in the VIE, the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. ASU 2015-02 provides guidance on the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a VIE, and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. To assess whether the Company has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, the Company considers all facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes, first, identifying the activities that most significantly impact the VIE’s economic performance; and second, identifying which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the VIE (such as asset managers, collateral managers, servicers, or owners of call options or liquidation rights over the VIE’s assets) or have the right to unilaterally remove those decision-makers are deemed to have the power to direct the activities of a VIE. To assess whether the Company has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Company considers all of its economic interests, including debt and equity investments, servicing fees, and derivative or other arrangements deemed to be variable interests in the VIE. This assessment requires that the Company apply judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE’s capital structure; and the reasons why the interests are held by the Company. The Company performs on-going reassessments of: (1) whether any entities previously evaluated under the majority voting-interest framework have become VIEs, based on certain events, and are therefore subject to the VIE consolidation framework; and (2) whether changes in the facts and circumstances regarding the Company’s involvement with a VIE cause the Company’s consolidation conclusion regarding the VIE to change. When in the evaluation of its interest in each VIE it is determined that the Company is considered the PB, the VIE’s assets, liabilities and non-controlling interests are consolidated and included in the consolidated financial statements. See Note 9 – Variable Interest Entities Consolidated VIEs The most significant types of VIEs that CIT may utilize are 'on balance sheet' secured financings of pools of loans and leases originated by the Company where the Company is the PB. The main risks inherent in structured financings are deterioration in the credit performance of the vehicle's underlying asset portfolio and risk associated with the servicing of the underlying assets. With respect to events or circumstances that could expose CIT to a loss as these are accounted for as on balance sheet, the Company records an ALLL for the credit risks associated with the underlying leases and loans. The VIE has an obligation to pay the debt in accordance with the terms of the underlying agreements. Generally, third-party investors in the obligations of the consolidated VIEs have legal recourse only to the assets of the VIEs and do not have recourse to the Company beyond certain specific provisions that are customary for secured financing transactions, such as asset repurchase obligations for breaches of representations and warranties. In addition, the assets are generally restricted to pay only such liabilities. Unconsolidated VIE’s Unconsolidated VIEs include agency and non-agency securitization structures, limited partnership interests and joint ventures where the Company’s involvement is limited to an investor |
Non-Interest Income | Non-interest Income Non-interest income is recognized in accordance with relevant authoritative pronouncements and includes rental income on operating leases and other non-interest income. Other non-interest income includes (1) fee revenues, including fees on lines of credit, letters of credit, capital markets related fees, agent and advisory fees, service charges on deposit accounts, and servicing fees on loans CIT services for others, (2) factoring commissions, (3) gains and losses on leasing equipment, net of impairments, (4) bank-owned life insurance (“BOLI”) income, (5) property tax income, (6) gains and losses on investment securities, net of impairments, and (7) other revenues. Other revenues include gains and losses on OREO sales, gains and losses on derivatives and foreign currency exchange, gains and losses on loan and portfolio sales, and impairment on assets HFS. In addition, other revenues include items that are more episodic in nature, such as gains on work-out related claims, recoveries on acquired loans or loans charged off prior to transfer to AHFS, proceeds received in excess of carrying value on non-accrual accounts HFS that were repaid or had another workout resolution, insurance proceeds in excess of carrying value on damaged leased equipment, and also includes income from joint ventures. |
Non-Interest Expenses | Non-interest Expenses Non-interest expense is recognized in accordance with relevant authoritative pronouncements and includes depreciation on operating lease equipment, maintenance and other operating lease expenses, loss on debt extinguishments and deposit redemptions, goodwill impairment, and operating expenses. Operating expenses consists of (1) compensation and benefits, (2) technology costs, (3) professional fees, (4) insurance, (5) net occupancy expense, (6) advertising and marketing, (7) property tax expense, (8) intangible asset amortization, (9) restructuring costs and (10) other expenses. |
Prepaid Railcar Certification Costs | Prepaid Railcar Certification Costs The Company incurs certain costs related to rail tank car safety certifications. These certification costs provide a long-term benefit to the Company as they allow the rail tank cars to comply with government standards and, as such, secure the use of these assets over future periods. These costs are accounted for as a prepaid expense, are classified within Other Assets and are amortized over the life cycle of the anticipated benefit of the re-certification (approximately 10 years). |
Stock-Based Compensation | Stock-Based Compensation Compensation expense associated with equity-based awards is recognized over the vesting period (requisite service period), which is generally three years, under the “graded vesting” attribution method, whereby each vesting tranche of the award is amortized separately as if each were a separate award. The cost of awards granted to directors in lieu of cash is recognized using the single grant approach with immediate vesting and expense recognition. Expenses related to stock-based compensation are included in operating expenses (compensation and benefits). |
Bank-Owned Life Insurance | Bank-Owned Life Insurance CIT purchased life insurance policies on the lives of certain officers and employees and is the owner and beneficiary of the policies. These policies, known as BOLI, offset the cost of providing employee benefits. CIT records these BOLI policies as a separate line item in the Consolidated Balance Sheets at each policy’s respective cash surrender value, with changes recorded as other non-interest income in the Consolidated Statements of Income. |
Earnings per Share | Earnings per Share (“EPS”) Basic EPS is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding increased by the weighted-average potential impact of dilutive securities. The Company's potential dilutive instruments primarily include restricted unvested stock grants and performance stock grants. The dilutive effect is computed using the treasury stock method, which assumes the conversion of these instruments. However, in periods when there is a net loss, these shares would not be included in the EPS computation as the result would have an anti-dilutive effect. |
Treasury Stock Retirement | Treasury Stock Retirement The Company may choose to retire treasury shares that it acquires through share repurchases and return those shares to the status of authorized but unissued. The Company accounts for treasury stock transactions under the cost method. For each reacquisition of common stock, the number of shares and the acquisition price for those shares is added to the existing treasury stock count and total value. When treasury shares are retired, the Company's policy is to allocate the excess of the repurchase price over the par value of shares acquired to both retained earnings and paid-in capital. The portion allocated to paid-in capital is determined by applying a percentage, which is determined by dividing the number of shares to be retired by the number of shares issued, to the balance of additional paid-in capital as of the retirement date. |
Accounting for Costs Associated with Exit or Disposal Activities | Accounting for Costs Associated with Exit or Disposal Activities A liability for costs associated with exit or disposal activities, other than in a business combination, is recognized when the liability is incurred. The liability is measured at fair value, with adjustments for changes in estimated cash flows recognized in earnings. |
Consolidated Statements of Cash Flows | Consolidated Statements of Cash Flows Unrestricted cash and cash equivalents includes cash and interest-bearing deposits, which are primarily overnight money market investments and short term investments in mutual funds. The Company maintains cash balances principally at financial institutions located in the U.S. The balances are not insured in all cases. Cash and cash equivalents also include amounts at CIT Bank, which are only available for the bank’s funding and investment requirements. Cash inflows and outflows from customer deposits are presented on a net basis. Factoring receivables are presented on a net basis, as a part of change in loans, in the Consolidated Statements of Cash Flows, as factoring receivables are generally due in less than 90 days. Cash receipts and cash payments resulting from purchases and sales of loans, securities, and other financing and leasing assets are classified as operating cash flows when these assets are originated/acquired and designated specifically for sale. Activity for loans originated or acquired for investment purposes, including those subsequently transferred to AHFS, is classified in the investing section of the Consolidated Statements of Cash Flows. The vast majority of the Company’s loan originations are for investment purposes. Cash receipts resulting from sales of loans, beneficial interests and other loans and leases that were not specifically originated and/or acquired and designated for resale are classified as investing cash inflows regardless of subsequent classification. The cash flows related to investment securities and loans (excluding loans held for sale) purchased at a premium or discount are as follows: • CIT classifies the entire cash flow, including the premium, as investing outflow in the period of acquisition and on a subsequent basis, the premium amortization is classified in investing as a positive adjustment, similar to the cumulative earnings approach. • CIT classifies the entire cash flow, net of the discount, as investing outflow in the period of acquisition and on a subsequent basis, the discount accretion is classified in investing as a negative adjustment. Restricted cash includes cash on deposit with other banks that are legally restricted as to withdrawal and primarily serve as collateral for certain servicer obligations of the Company. At December 31, 2019, restricted cash included amounts set aside in escrow related to the acquisition of MOB. CIT presents restricted cash activity within the net change in cash and cash equivalents and as part of the beginning and ending balances of cash, cash equivalents and restricted cash in the Statements of Cash Flows, along with a reconciliation of those balances in the Statements of Cash Flows to those shown on the Balance Sheet. See Note 29 – Subsequent Events. Activity of discontinued operations is included in various line items of the Consolidated Statements of Cash Flows and summary items are disclosed in Note 2 – Discontinued Operations |
Accounting Pronouncements Adopted | Accounting Pronouncements Adopted On January 1, 2019, the Company adopted the following Accounting Standards Updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”): Leases and subsequent related ASUs ASU 2016-02, Leases (Topic 842), See further discussion in the Leases . Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities CIT adopted this guidance as of January 1, 2019 using a modified retrospective transition approach. The adoption of this standard did not have a material impact on CIT’s consolidated financial statements and disclosures as unamortized premiums on debt securities are immaterial. Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Base Payment Accounting ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Base Payment Accounting Equity-Equity-Based Payments to Non- Employees, . CIT adopted this guidance as of January 1, 2019 using a modified retrospective transition approach. The adoption of this standard did not have a material impact on CIT’s consolidated financial statements and disclosures as CIT’s current accounting for nonemployee share-based payment is consistent with the requirements for employee share-based awards. Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes SOFR transition and provide sufficient lead time for entities to prepare for changes to interest rate risk hedging strategies for both risk management and hedge accounting purposes. Entities should adopt this guidance on a prospective basis for qualifying new or redesignated hedging relationships entered into on or after the date of adoption. CIT adopted this guidance as of January 1, 2019. The adoption of this standard did not have a material impact on CIT’s consolidated financial statements and disclosures as this amendment requires adoption on a prospective basis for qualifying new or redesignated hedging relationships entered into on or after the date of adoption. |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS The following accounting pronouncements have been issued by the FASB but are not yet effective as of December 31, 2019: Standard Summary of Guidance Effect on CIT's Financial Statements ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, Issued June 2016 with Updates through November 2019 • ASU 2016-13 introduces a forward-looking “expected loss” model (the “Current Expected Credit Losses” (“CECL”) model) to estimate credit losses over the full remaining expected life of the portfolio upon adoption, rather than the incurred loss model under previous U.S. GAAP standards. Estimates of expected credit losses under the new model will be based on relevant information about past events, current conditions, and reasonable and supportable forecasts regarding the collectability of reported amounts. Generally, the new model requires that an allowance for credit losses (“ACL”) be estimated and recognized for financial assets measured at amortized cost within its scope. • The amendments in this standard eliminate existing guidance for Purchase Credit Impaired ("PCI") loans and require recognition of an allowance for expected credit losses on financial assets purchased with more than insignificant credit deterioration since origination (purchased credit deteriorated (“PCD”) loans). • Loans previously classified as PCI will be considered PCD at adoption, with a credit related discount reflected in the ACL and loan balance. • ASU 2016-13 amends existing impairment guidance for AFS securities to incorporate an allowance, which will allow for reversals of impairment losses if the credit of an issuer improves. • In addition, ASU 2016-13 expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the ACL. • ASU 2018-19 clarifies that receivables arising from operating leases are not within the scope of ASU 2016-13 and should be accounted for in accordance with Topic 842, Leases . • ASU 2019-04 clarifies certain aspects of the credit losses standard and addresses issues related to accrued interest receivable balances, recoveries, as well as extension and renewal options, among other items. • ASU 2019-05 allows companies to irrevocably elect, upon adoption of ASU 2016-13, the fair value option on financial instruments that (1) were previously recorded at amortized cost and (2) are within the scope of ASU 2016-13 if the instruments are eligible for the fair value option under ASC 825-10. The fair value option election does not apply to held-to-maturity debt securities. Entities are required to make this election on an instrument-by-instrument basis. • ASU 2019-11 permits entities to record a negative allowance when measuring the expected credit losses for a PCD financial asset, not to exceed the total amount of the amortized cost basis previously charged off and expected to be charged off. It allows entities to apply a similar approach when determining the ACL for PCD assets but does not permit the premature recognition of interest income. • Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted (modified-retrospective approach). • CIT adopted this guidance as of January 1, 2020. • CIT developed and implemented models and methodologies that are used to determine the CECL allowance. Key inputs into the models and methodologies include historical loss experience data, macroeconomic variable forecasts, position level data and management assumptions. CIT considers the macroeconomic forecasts used to be reasonable and supportable over the life of the loan portfolio. • As a result of the adoption, the ACL increases by approximately $225 - $275 million effective January 1, 2020 (excluding the impact of the MOB acquisition completed on January 1, 2020). The presentation of a range for the January 1, 2020 adoption impact is included pending final model review, which may impact the reserve as of such date. • Approximately $120 million of the increase is due to PCI loans that were reclassified as PCD loans with the credit related discount resulting in an increase to both the ACL and the loan balance. The reclassification from PCI to PCD does not; however, result in an adoption date adjustment to retained earnings. • The remaining increase in ACL results in a decrease of approximately $75 - $100 million in retained earnings (after-tax) effective January 1, 2020 (excluding the impact of the MOB acquisition completed on January 1, 2020). Management plans to phase-in the transitional amounts impacting regulatory capital as follows: 25% in the first year of adoption of CECL, 50% in the second year, 75% in the third year, with full impact beginning in the fourth year. Adoption of the new standard could produce higher volatility in the quarterly credit loss expense than the incurred loss model under current U.S. GAAP, depending on asset mix, forecast of future economic scenarios, or other factors, and could adversely impact our ongoing earnings. • For acquisitions subsequent to the adoption of CECL, CIT is required to record an allowance for non-PCD assets with a corresponding increase to the income statement Provision for credit losses. For acquired PCD loans, an allowance is required with a corresponding increase to the amortized cost basis as of the acquisition date. For PCD loans where all or a portion of the loan balance had been charged off prior to acquisition, for which active collection efforts are still underway, the CECL allowance included as part of the grossed-up loan balance at acquisition is immediately charged off. Additionally, CIT is required to consider its existing policies in determining whether to charge off any financial assets, regardless of whether a charge-off was recorded by the predecessor company. ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities Issued October 2018 • The amendments in this guidance change how entities that apply the VIE guidance evaluate decision-making fees. To determine whether decision-making fees represent a variable interest, an entity will consider indirect interests held through related parties under common control on a proportional basis rather than in their entirety, as currently required by GAAP. • Entities should adopt this standard retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented. • CIT adopted this guidance as of January 1, 2020. • The adoption of this standard did not have an impact on CIT’s consolidated financial statements and disclosures. ASU 2019-04 , Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Issued April 2019 • The FASB amended its standards on credit losses, hedging, and recognizing and measuring financial instruments to clarify them and address implementation issues. • Refer to ASU 2016-13 above for the amendments that clarify the scope of the credit losses standard. • With respect to codification improvements to Update 2017-12 and other hedge accounting, the amendments address partial-term fair value hedges, fair value hedge basis adjustments, and certain transition requirements, among other items. • CIT adopted this guidance as of January 1, 2020. • The adoption of this standard did not have a material impact on CIT’s consolidated financial statements and disclosures. ASU 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes Issued November 2019 • The amendments in this Update add new guidance to simplify accounting for income taxes, change the accounting for certain income tax transactions and make minor improvements to the codification. • The amendments in this Update have different transition requirements depending on the topic. • Effective for CIT as of January 1, 2021. Early adoption is permitted. • CIT is currently evaluating the impact of this standard; however, the Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements and disclosures. |
Litigation and other Contingencies | Litigation and other Contingencies CIT is involved, and from time to time in the future may be involved, in a number of pending and threatened judicial, regulatory, and arbitration proceedings as well as proceedings, investigations, examinations and other actions brought or considered by governmental and self-regulatory agencies. These matters arise in connection with the conduct of CIT’s business. At any given time, CIT may also be in the process of responding to subpoenas, requests for documents, data and testimony relating to such matters and engaging in discussions to resolve the matters (all of the foregoing collectively being referred to as “Litigation”). While most Litigation relates to individual claims, CIT is also subject to putative class action claims and similar broader claims and indemnification obligations. In view of the inherent difficulty of predicting the outcome of Litigation matters and indemnification obligations, particularly when such matters are in their early stages or where the claimants seek indeterminate damages, CIT cannot state with confidence what the eventual outcome of the pending Litigation will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss, fines, or penalties related to each pending matter will be, if any. In accordance with applicable accounting guidance, CIT establishes reserves for Litigation when those matters present loss contingencies as to which it is both probable that a loss will occur and the amount of such loss can be reasonably estimated. Based on currently available information, CIT believes that the outcome of Litigation that is currently pending will not have a material adverse effect on the Company’s financial condition, but may be material to the Company’s operating results or cash flows for any particular period, depending in part on its operating results for that period. The actual results of resolving such matters may be substantially higher than the amounts reserved. For certain Litigation matters in which the Company is involved, the Company is able to estimate a range of reasonably possible losses in excess of established reserves and insurance. For other matters for which a loss is probable or reasonably possible, such an estimate cannot be determined. For Litigation and other matters where losses are reasonably possible, management currently estimates the aggregate range of reasonably possible losses as up to $60 million in excess of any established reserves and any insurance we reasonably believe we will collect related to those matters. This estimate represents reasonably possible losses (in excess of established reserves and insurance) over the life of such Litigation, which may span a currently indeterminable number of years, and is based on information currently available as of December 31, 2019. The Litigation matters underlying the estimated range will change from time to time, and actual results may vary significantly from this estimate. Those Litigation matters for which an estimate is not reasonably possible or as to which a loss does not appear to be reasonably possible, based on current information, are not included within this estimated range and, therefore, this estimated range does not represent the Company’s maximum loss exposure. The foregoing statements about CIT’s Litigation are based on the Company’s judgments, assumptions, and estimates and are necessarily subjective and uncertain. The Company has several hundred threatened and pending judicial, regulatory and arbitration proceedings at various stages. Several of the Company’s significant Litigation matters are described below. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Condensed Balance Sheet, Statement of Operations, and Cash Flows from Discontinued Operations | The following tables reflect the combined results of the discontinued operations. Condensed Combined Balance Sheet (dollars in millions) December 31, December 31, 2019 2018 Net loans $ - $ 248.1 Other assets - 1.7 Assets of discontinued operations $ - $ 249.8 Secured borrowings $ - $ 195.0 Other liabilities - 102.0 Liabilities of discontinued operations $ - $ 297.0 Condensed Combined Statement of Income (dollars in millions) Years Ended December 31, 2019 2018 2017 Interest income $ 3.4 $ 14.6 $ 39.5 Interest expense 2.8 10.5 109.1 Rental income on operating leases - 0.5 312.5 Other income 3.0 19.9 (13.9 ) Maintenance and other operating lease expenses - - 4.2 Operating expenses 2.9 35.7 30.0 Loss on debt extinguishment - - 39.0 Income (loss) from discontinued operations before provision (benefit) for income taxes 0.7 (11.2 ) 155.8 Provision (benefit) for income taxes 0.2 (2.5 ) 65.6 Income (loss) on sale of discontinued operation, net of taxes - (16.3 ) 118.6 Income (loss) from discontinued operations, net of taxes $ 0.5 $ (25.0 ) $ 208.8 Condensed Combined Statement of Cash Flows (dollars in millions) Years Ended December 31, 2019 2018 2017 Net cash flows (used in) provided by operations $ (4.4 ) $ 7.2 $ (5.0 ) Net cash flows provided by investing activities 54.9 148.7 10,391.7 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Loans by Product | Loans, excluding those reflected as discontinued operations, consist of the following. Unless otherwise noted, loans held for sale are not included. Prior period balances have been conformed to the current presentation. Loans by Product (dollars in millions) December 31, 2019 December 31, 2018 Commercial loans $ 22,765.1 $ 22,285.7 Financing leases and leveraged leases 2,254.4 2,489.4 Total commercial 25,019.5 24,775.1 Consumer loans 5,979.4 6,020.3 Total loans $ 30,998.9 $ 30,795.4 |
Schedule Of Loans By Segment, Based On Obligor Location | The following table presents loans by segment, based on obligor location: Loans (dollars in millions) December 31, 2019 December 31, 2018 Domestic Foreign Total Domestic Foreign Total Commercial Banking $ 22,866.0 $ 1,527.4 $ 24,393.4 $ 22,732.8 $ 1,530.6 $ 24,263.4 Consumer Banking (1) 6,605.5 - 6,605.5 6,532.0 - 6,532.0 Total $ 29,471.5 $ 1,527.4 $ 30,998.9 $ 29,264.8 $ 1,530.6 $ 30,795.4 (1) |
Components Of Net Investment In Loans | The following table presents selected components of the net investment in loans: Components of Net Investment in Loans (dollars in millions) December 31, December 31, 2019 2018 Unearned income (1) $ (430.0 ) $ (778.8 ) Unamortized premiums / (discounts) 30.0 20.6 Accretable yield on PCI loans (745.4 ) (903.8 ) Net unamortized deferred costs and (fees) (1) 50.9 85.7 (1) |
Loans - By Risk Rating | The following table summarizes commercial loans by the risk ratings that bank regulatory agencies utilize to classify credit exposure and which are consistent with indicators the Company monitors. The consumer loan risk profiles are different from commercial loans and use loan-to-value (“LTV”) ratios in rating the credit quality, and therefore are presented separately below. Commercial Loans— Risk Rating by Class / Segment (dollars in millions) Grade: Pass Special Mention Classified- accrual Classified- non-accrual PCI Loans (2) Total December 31, 2019 Commercial Banking Commercial Finance (1) $ 12,601.1 $ 450.7 $ 614.3 $ 246.7 $ — $ 13,912.8 Real Estate Finance 5,007.0 341.0 6.3 0.4 27.8 5,382.5 Business Capital (1) 4,527.5 233.1 217.0 60.9 — 5,038.5 Rail 59.6 — — — — 59.6 Total Commercial Banking 22,195.2 1,024.8 837.6 308.0 27.8 24,393.4 Consumer Banking Consumer and Community Banking - Primarily SBA Loans 589.6 2.4 33.9 0.2 — 626.1 Total Consumer Banking 589.6 2.4 33.9 0.2 — 626.1 Total $ 22,784.8 $ 1,027.2 $ 871.5 $ 308.2 $ 27.8 $ 25,019.5 December 31, 2018 Commercial Banking Commercial Finance (1) $ 11,744.4 $ 801.2 $ 1,212.0 $ 195.8 $ 4.7 $ 13,958.1 Real Estate Finance 4,977.4 162.3 225.6 2.2 32.2 5,399.7 Business Capital (1) 4,433.3 164.9 183.8 39.9 — 4,821.9 Rail 82.6 0.5 0.6 — — 83.7 Total Commercial Banking 21,237.7 1,128.9 1,622.0 237.9 36.9 24,263.4 Consumer Banking Consumer and Community Banking - Primarily SBA Loans 446.4 7.1 56.0 0.4 1.8 511.7 Total Consumer Banking 446.4 7.1 56.0 0.4 1.8 511.7 Total $ 21,684.1 $ 1,136.0 $ 1,678.0 $ 238.3 $ 38.7 $ 24,775.1 (1) (2) |
Schedule Of Consumer Loans LTV Distributions | The following table provides a summary of the consumer loan LTV distribution and the covered loans held for investment balances for single-family residential (“SFR”) mortgage loans. The average LTV for the Total Consumer Loans included below at December 31, 2019 and 2018, were 63% and 64%, respectively. Consumer Loans LTV Distribution (dollars in millions) Covered Loans (2) Non-covered Loans Total Consumer LTV Range Non-PCI PCI Non-PCI PCI Loans December 31, 2019 Greater than 125% $ — $ 2.8 $ 5.2 $ 53.2 $ 61.2 101% – 125% — 8.5 6.6 93.0 108.1 80% – 100% 0.3 48.1 183.4 239.3 471.1 Less than 80% 307.5 234.3 4,225.5 570.6 5,337.9 Not Applicable (1) — — 1.1 — 1.1 Total $ 307.8 $ 293.7 $ 4,421.8 $ 956.1 $ 5,979.4 December 31, 2018 Greater than 125% $ 1.3 $ 105.6 $ 4.9 $ — $ 111.8 101% – 125% 5.3 186.1 4.7 — 196.1 80% – 100% 27.3 446.8 220.3 — 694.4 Less than 80% 1,068.5 916.0 3,032.6 — 5,017.1 Not Applicable (1) — — 0.9 — 0.9 Total $ 1,102.4 $ 1,654.5 $ 3,263.4 $ — $ 6,020.3 (1) (2) |
Loans - Delinquency Status | Past Due and Non-accrual Loans The table that follows presents portfolio delinquency status, regardless of accrual/non-accrual classification: Loans - Delinquency Status (dollars in millions) Past Due Total 30-59 60-89 90 or more Past Due Current PCI Loans (2) Total December 31, 2019 Commercial Banking Commercial Finance (1) $ 58.7 $ 27.8 $ 49.0 $ 135.5 $ 13,777.3 $ — $ 13,912.8 Real Estate Finance 0.6 46.6 — 47.2 5,307.5 27.8 5,382.5 Business Capital (1) 113.8 35.0 22.0 170.8 4,867.7 — 5,038.5 Rail — — — — 59.6 — 59.6 Total Commercial Banking 173.1 109.4 71.0 353.5 24,012.1 27.8 24,393.4 Consumer Banking Legacy Consumer Mortgage 15.5 3.3 17.7 36.5 795.2 1,249.8 2,081.5 Consumer and Community Banking 16.4 3.3 7.6 27.3 4,496.7 — 4,524.0 Total Consumer Banking 31.9 6.6 25.3 63.8 5,291.9 1,249.8 6,605.5 Total $ 205.0 $ 116.0 $ 96.3 $ 417.3 $ 29,304.0 $ 1,277.6 $ 30,998.9 December 31, 2018 Commercial Banking Commercial Finance (1) $ 55.6 $ 0.4 $ 72.8 $ 128.8 $ 13,824.6 $ 4.7 $ 13,958.1 Real Estate Finance 8.9 12.0 5.1 26.0 5,341.5 32.2 5,399.7 Business Capital (1) 91.1 35.0 15.0 141.1 4,680.8 — 4,821.9 Rail 2.8 0.9 1.5 5.2 78.5 — 83.7 Total Commercial Banking 158.4 48.3 94.4 301.1 23,925.4 36.9 24,263.4 Consumer Banking Legacy Consumer Mortgage 25.9 5.9 37.6 69.4 1,063.6 1,654.5 2,787.5 Consumer and Community Banking 25.3 3.0 2.1 30.4 3,712.3 1.8 3,744.5 Total Consumer Banking 51.2 8.9 39.7 99.8 4,775.9 1,656.3 6,532.0 Total $ 209.6 $ 57.2 $ 134.1 $ 400.9 $ 28,701.3 $ 1,693.2 $ 30,795.4 (1) In the fourth quarter of 2019, we modified our reporting at the business level. Commercial Services and an equipment financing portfolio consisting mostly of leases were transferred from Business Capital to Commercial Finance. Prior period numbers have been conformed to the current period presentation. (2) |
Loans On Non-accrual Status | The following table sets forth non-accrual loans, assets received in satisfaction of loans (OREO and repossessed assets) and loans 90 days or more past due and still accruing. Loans on Non-Accrual Status (dollars in millions) (1) December 31, 2019 December 31, 2018 Held for Investment Held for Sale Total Held for Investment Held for Sale Total Commercial Banking Commercial Finance (2) $ 246.7 $ — $ 246.7 $ 195.8 $ — $ 195.8 Business Capital (2) 60.9 — 60.9 39.9 — 39.9 Real Estate Finance 0.4 — 0.4 2.2 — 2.2 Total Commercial Banking 308.0 — 308.0 237.9 — 237.9 Consumer Banking Consumer and Community Banking 4.0 — 4.0 6.1 — 6.1 Legacy Consumer Mortgages 13.3 1.0 14.3 32.2 — 32.2 Total Consumer Banking 17.3 1.0 18.3 38.3 — 38.3 Corporate (2) — — — — 6.1 6.1 Total $ 325.3 $ 1.0 $ 326.3 $ 276.2 $ 6.1 $ 282.3 Repossessed assets and OREO 20.1 33.0 Total non-performing assets $ 346.4 $ 315.3 Commercial loans past due 90 days or more accruing $ 25.6 $ 21.9 Consumer loans past due 90 days or more accruing 11.3 13.7 Total accruing loans past due 90 days or more $ 36.9 $ 35.6 (1) (2) |
Schedule Of Loans In Process Of Foreclosure | The table below summarizes the residential mortgage loans in the process of foreclosure and OREO: Loans in Process of Foreclosure and OREO (1) (dollars in millions) 2019 2018 PCI $ 25.4 $ 122.6 Non-PCI 13.5 24.1 Loans in process of foreclosure $ 38.9 $ 146.7 OREO $ 17.7 $ 32.0 (1) |
Impaired Loans | The following table contains information about impaired loans and the related allowance for loan losses by class. Impaired loans exclude PCI loans. Loans that were identified as impaired at the date of the OneWest Transaction (the “Acquisition Date”) for which the Company is applying the income recognition and disclosure guidance in ASC 310-30 ( Loans and Debt Securities Acquired with Deteriorated Credit Quality Loans Acquired with Deteriorated Credit Quality Impaired Loans (dollars in millions) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment (2) December 31, 2019 With no related allowance recorded: Commercial Banking Commercial Finance (3) $ 46.5 $ 69.0 $ — $ 68.0 Business Capital (3) 4.8 5.5 — 6.0 Real Estate Finance — — — 1.6 Consumer Banking Consumer and Community Banking 4.0 4.0 — 4.9 LCM 20.6 22.4 — 24.7 With an allowance recorded: Commercial Banking Commercial Finance (3) 223.9 267.3 86.0 166.6 Business Capital (3) 19.4 19.4 10.0 11.6 Real Estate Finance — — — 0.8 Consumer Banking Consumer and Community Banking 0.1 0.2 — — LCM 1.4 1.4 0.2 0.4 Total Impaired Loans (1) 320.7 389.2 96.2 284.6 Total Loans Impaired at Acquisition Date 1,277.6 1,936.1 17.4 1,504.4 Total $ 1,598.3 $ 2,325.3 $ 113.6 $ 1,789.0 December 31, 2018 With no related allowance recorded: Commercial Banking Commercial Finance (3) $ 89.4 $ 112.1 $ — $ 70.7 Business Capital (3) 7.1 9.5 — 9.4 Real Estate Finance 2.3 2.3 — 1.4 Consumer Banking Consumer and Community Banking 4.4 4.4 — 1.8 LCM 31.5 34.8 — 26.4 With an allowance recorded: Commercial Banking Commercial Finance (3) 109.2 128.2 46.4 107.8 Business Capital (3) 3.8 3.8 1.0 1.9 Real Estate Finance — — — 0.5 Consumer Banking Consumer and Community Banking — — — 0.1 Total Impaired Loans (1) 247.7 295.1 47.4 220.0 Total Loans Impaired at Acquisition Date 1,693.2 2,489.9 18.4 1,829.2 Total $ 1,940.9 $ 2,785.0 $ 65.8 $ 2,049.2 (1) ( 2 ) (3) |
Purchased Credit Impaired Loans With Deteriorated Credit Quality | Purchased Credit Impaired Loans (dollars in millions) December 31, 2019 Carrying Value Unpaid Principal Balance Allowance for Loan Losses Commercial Banking Real Estate Finance $ 27.8 $ 30.4 $ 9.8 Consumer Banking Legacy Consumer Mortgages 1,249.8 1,905.7 7.6 $ 1,277.6 $ 1,936.1 $ 17.4 December 31, 2018 Commercial Banking Commercial Finance $ 4.7 $ 9.0 $ 0.4 Real Estate Finance 32.2 37.7 8.8 Consumer Banking Consumer and Community Banking 1.8 2.3 — Legacy Consumer Mortgages 1,654.5 2,440.9 9.2 $ 1,693.2 $ 2,489.9 $ 18.4 |
Summary of Carrying Value of Commercial PCI Loans | The following table summarizes the carrying value of commercial PCI loans, which are monitored for credit quality based on internal risk classifications. See previous table Consumer Loan LTV Distribution for credit quality metrics on consumer PCI loans. Carrying Value of Commercial PCI Loans (dollars in millions) December 31, 2019 December 31, 2018 Non- criticized Criticized Total Non- criticized Criticized Total Commercial Finance $ — $ — $ — $ — $ 4.7 $ 4.7 Real Estate Finance 20.7 7.1 27.8 14.6 17.6 32.2 Total $ 20.7 $ 7.1 $ 27.8 $ 14.6 $ 22.3 $ 36.9 |
Schedule Of Changes To The Accretable Yield For PCI Loans | Changes in the accretable yield for PCI loans are summarized below. Change in Accretable Yield (dollars in millions) Years Ended December 31, 2019 2018 2017 Balance, beginning of period $ 903.8 $ 1,063.7 $ 1,261.4 Accretion into interest income (146.9 ) (167.5 ) (204.6 ) Reclassification from non-accretable difference 19.2 17.8 38.5 Disposals and Other (30.7 ) (10.2 ) (31.6 ) Balance, end of period $ 745.4 $ 903.8 $ 1,063.7 |
Schedule Of Recorded Investments For TDRs | The following table presents the recorded investment of TDRs, excluding those within a trial modification period of $5.5 million, $4.2 million and $12.5 million as of December 31, 2019, 2018 and 2017: TDRs (dollars in millions) December 31, 2019 December 31, 2018 December 31, 2017 Recorded Investment % Total TDR Recorded Investment % Total TDR Recorded Investment % Total TDR Commercial Banking $ 129.5 87 % $ 70.4 80 % $ 86.2 84 % Consumer Banking 19.3 13 % 17.2 20 % 16.9 16 % Total $ 148.8 100 % $ 87.6 100 % $ 103.1 100 % Percent non-accrual 71 % 79 % 63 % Modifications (dollars in millions) Years Ended 2019 2018 2017 Recorded investment related to modifications qualifying as TDRs that occurred during the years $ 89.9 $ 69.0 $ 92.5 Recorded investment at the time of default of TDRs that experienced a payment default (payment default is one missed payment) during the years and for which the payment default occurred within one year of the modification $ 23.2 $ 21.8 $ 41.1 |
Allowance For Loan Losses (Tabl
Allowance For Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Allowance for Loan Losses and Recorded Investment in Finance Receivables | Allowance for Loan Losses and Recorded Investment in Loans (dollars in millions) Commercial Banking Consumer Banking Total Year Ended December 31, 2019 Balance - beginning of period $ 460.2 $ 29.5 $ 489.7 Provision (benefit) for credit losses 117.3 (6.5 ) 110.8 Other (1) 5.0 (0.6 ) 4.4 Gross charge-offs (151.2 ) (2.7 ) (153.9 ) Recoveries 29.1 2.5 31.6 Balance - end of period $ 460.4 $ 22.2 $ 482.6 Allowance Balance at December 31, 2019 Loans individually evaluated for impairment $ 96.0 $ 0.2 $ 96.2 Loans collectively evaluated for impairment 354.6 14.4 369.0 Loans acquired with deteriorated credit quality (2) 9.8 7.6 17.4 Allowance for loan losses 460.4 22.2 482.6 Other reserves (1) $ 36.4 $ 0.7 $ 37.1 Loans at December 31, 2019 Loans individually evaluated for impairment $ 294.6 $ 26.1 $ 320.7 Loans collectively evaluated for impairment 24,071.0 5,329.6 29,400.6 Loans acquired with deteriorated credit quality (2) 27.8 1,249.8 1,277.6 Ending balance $ 24,393.4 $ 6,605.5 $ 30,998.9 Percent of loans to total loans 78.7 % 21.3 % 100.0 % Year Ended December 31, 2018 Balance - beginning of period $ 402.2 $ 28.9 $ 431.1 Provision for credit losses 167.1 3.9 171.0 Other (1) 3.0 - 3.0 Gross charge-offs (138.7 ) (4.1 ) (142.8 ) Recoveries 26.6 0.8 27.4 Balance - end of period $ 460.2 $ 29.5 $ 489.7 Allowance Balance at December 31, 2018 Loans individually evaluated for impairment $ 47.4 $ - $ 47.4 Loans collectively evaluated for impairment 403.6 20.3 423.9 Loans acquired with deteriorated credit quality (2) 9.2 9.2 18.4 Allowance for loan losses 460.2 29.5 489.7 Other reserves (1) $ 41.4 $ 0.1 $ 41.5 Loans at December 31, 2018 Loans individually evaluated for impairment $ 211.8 $ 35.9 $ 247.7 Loans collectively evaluated for impairment 24,014.7 4,839.8 28,854.5 Loans acquired with deteriorated credit quality (2) 36.9 1,656.3 1,693.2 Ending balance $ 24,263.4 $ 6,532.0 $ 30,795.4 Percent of loans to total loans 78.8 % 21.2 % 100.0 % (1) (2) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet and Cash Flow Information Related to Leases | The following tables present supplemental balance sheet and cash flow information related to operating leases. ROU assets are included in Other assets and lease liabilities are included in Other liabilities. Supplemental Lease Balance Sheet Information (dollars in millions) December 31, 2019 ROU assets $ 194.9 Lease liabilities 242.6 Weighted-average remaining lease terms 9 Years Weighted-average discount rate 4.77 % Supplemental Cash Flow Information (dollars in millions): Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities $ 45.8 ROU assets obtained in exchange for new lease liabilities $ 18.0 |
Maturities of Lease Liabilities | The following table presents maturities of lease liabilities: Maturity of Lease Liabilities (dollars in millions) Years Ended December 31, 2020 $ 47.1 2021 35.0 2022 28.4 2023 28.0 2024 27.7 Thereafter 143.0 Total undiscounted lease payments 309.2 Difference between undiscounted cash flows and discounted cash flows (66.6 ) Lease liabilities, at present value $ 242.6 |
Components of Operating Lease Expense Included in Operating Expenses | The following table presents components of operating lease expense, which are included in operating expenses: Components of Operating Lease Expense (dollars in millions) Year Ended December 31, 2019 Operating lease cost (1) $ 43.1 Variable lease cost 10.6 Sublease income (14.9 ) Total operating lease expense $ 38.8 (1) |
Schedule of Net Book Value of Operating Lease Equipment by Equipment Type | The following table provides the net book value of operating lease equipment (net of accumulated depreciation of $1.4 billion at December 31, 2019 and $1.2 billion at December 31, 2018), by equipment type. Operating Lease Equipment (dollars in millions) December 31, December 31, 2019 2018 Railcars and locomotives $ 6,706.0 $ 6,420.7 Other equipment 613.7 549.9 Total (1) $ 7,319.7 $ 6,970.6 (1) |
Components of Finance Lease Net Investment on Discounted Basis | The following table presents Components of Net Investment in Finance Leases (dollars in millions) December 31, 2019 Lease receivables $ 1,905.3 Unguaranteed residual assets 309.4 Total net investment in finance leases 2,214.7 Leveraged lease net investment (1) 39.7 Total $ 2,254.4 (1) leases |
Schedule of Lease Income Related to Company's Operating and Finance Leases | The table that follows Lease Income (dollars in millions) Year Ended December 31, 2019 Lease income – Operating leases $ 800.8 Variable lease income – Operating leases (1) 56.9 Rental income on operating leases 857.7 Interest income - Sales type and direct financing leases 194.0 Variable lease income included in Other non-interest income (2) 46.0 Leveraged lease income 8.8 Total lease income $ 1,106.5 (1) (2) |
Maturity Analysis of Operating Lease Payments | The following tables present lease payments due on non-cancellable operating leases and lease receivables due on finance leases at December 31, 2019. Excluded from these tables are variable lease payments, including rentals calculated based on asset usage levels, rentals from future renewal and re-leasing activity, and expected sales proceeds from remarketing equipment Maturity Analysis of Operating Lease Payments (dollars in millions) Years Ended December 31, 2020 $ 644.5 2021 478.1 2022 325.1 2023 193.7 2024 102.8 Thereafter 69.3 Total $ 1,813.5 |
Maturity Analysis of Lease Receivables - Sales Type and Direct Financing Leases | Maturity Analysis of Lease Receivables - Sales Type and Direct Financing Leases (dollars in millions) Years Ended December 31, 2020 $ 832.2 2021 605.3 2022 383.4 2023 209.4 2024 76.6 Thereafter 31.4 Total undiscounted cash flows 2,138.3 Difference between undiscounted cash flows and discounted cash flows 233.0 Lease receivables, at present value $ 1,905.3 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Investment Securities | Investments include debt and equity securities. Investment Securities (dollars in millions) December 31, December 31, 2019 2018 AFS Securities Debt securities $ 6,011.8 $ 5,931.3 Securities carried at FV with changes in net income Equity securities 47.2 44.6 Non-marketable securities (1) 217.8 257.9 Total investment securities $ 6,276.8 $ 6,233.8 ( 1 ) Non-marketable investments include restricted stock of the FRB and FHLB carried at cost of $187.9 million at December 31, 2019 and $242.5 million at December 31, 2018. The remaining non-marketable investments without readily determinable fair values measured under the measurement exception totaled $29.9 million at December 31, 2019 and $15.4 million at December 31, 2018. |
Schedule of Interest and Dividend Income | The following table presents interest and dividends on investments and interest-bearing cash: Interest and Dividend Income (dollars in millions) Years Ended December 31, 2019 2018 2017 Interest income – debt securities (1) $ 187.9 $ 163.1 $ 128.9 Interest income – interest-bearing cash 37.1 42.3 57.7 Dividends – equity securities 8.5 13.2 10.9 Total interest and dividends $ 233.5 $ 218.6 $ 197.5 |
Amortized Cost and Fair Value of Securities Available-For-Sale | The following table presents amortized cost and fair value of securities AFS. Amortized Cost and Fair Value (dollars in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2019 Debt securities AFS Mortgage-backed securities U.S. government/sponsored agency – Residential $ 4,766.4 $ 24.1 $ (16.7 ) 4,773.8 U.S. government/sponsored agency – Commercial 554.5 12.1 (1.8 ) 564.8 U.S. government/sponsored agency obligations 449.4 — (5.4 ) 444.0 U.S. Treasury securities 11.2 0.1 — 11.3 Supranational securities 149.8 — — 149.8 State & municipal bonds 1.0 — — 1.0 Corporate bonds – foreign 65.9 1.2 — 67.1 Total debt securities AFS $ 5,998.2 $ 37.5 $ (23.9 ) $ 6,011.8 December 31, 2018 Debt securities AFS Mortgage-backed securities U.S. government/sponsored agency – Residential $ 5,341.2 $ 6.7 $ (122.7 ) $ 5,225.2 U.S. government/sponsored agency – Commercial 291.8 3.2 (0.4 ) 294.6 U.S. government/sponsored agency obligations 34.9 — (0.4 ) 34.5 U.S. Treasury securities 253.9 — (2.4 ) 251.5 Supranational securities 50.0 — (0.6 ) 49.4 State & municipal bonds 10.9 — (0.7 ) 10.2 Corporate bonds – foreign 65.8 0.1 — 65.9 Total debt securities AFS $ 6,048.5 $ 10.0 $ (127.2 ) $ 5,931.3 |
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity Dates | The following table presents the debt securities AFS by contractual maturity dates: Maturities - (dollars in millions) December 31, 2019 Amortized Cost Fair Value Weighted Average Yield Mortgage-backed securities — U.S. government/sponsored agency – Residential After 5 through 10 years $ 0.1 $ 0.1 7.10 % Due after 10 years 4,766.3 4,773.7 2.63 % Total 4,766.4 4,773.8 2.63 % Mortgage-backed securities — U.S. government/sponsored agency – Commercial After 1 through 5 years 12.1 12.3 3.11 % After 5 through 10 years 458.8 470.1 2.79 % Due after 10 years 83.6 82.4 2.25 % Total 554.5 564.8 2.71 % U.S. government/sponsored agency obligations After 1 through 5 years 24.9 24.9 2.43 % After 5 through 10 years 154.2 152.6 2.70 % Due after 10 years 270.3 266.5 2.82 % Total 449.4 444.0 2.75 % U.S. Treasury securities Due in 1 year or less 9.0 9.0 1.99 % After 1 through 5 years 0.2 0.2 1.63 % After 5 through 10 years 2.0 2.1 2.60 % Total 11.2 11.3 2.09 % Supranational securities Due in 1 year or less 149.8 149.8 1.56 % Total 149.8 149.8 1.56 % State & municipal bonds Due after 10 years 1.0 1.0 2.26 % Total 1.0 1.0 2.26 % Corporate bonds — foreign Due in 1 year or less 65.9 67.1 6.09 % Total 65.9 67.1 6.09 % Total debt securities AFS $ 5,998.2 $ 6,011.8 2.66 % |
Schedule of Debt Securities AFS - Estimated Unrealized Losses | The following tables summarize by investment category the gross unrealized losses, respective fair value and length of time that those securities have been in a continuous unrealized loss position. Gross Unrealized Loss (dollars in millions) December 31, 2019 Less than 12 months 12 months or greater Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Debt securities AFS Mortgage-backed securities U.S. government/sponsored agency – Residential $ 1,396.5 $ (4.6 ) $ 861.3 $ (12.1 ) U.S. government/sponsored agency – Commercial 282.7 (1.7 ) 17.6 (0.1 ) U.S. government/sponsored agency obligations 398.9 (5.4 ) — — Total debt securities AFS $ 2,078.1 $ (11.7 ) $ 878.9 $ (12.2 ) December 31, 2018 Debt securities AFS Mortgage-backed securities U.S. government/sponsored agency – Residential $ 582.1 $ (7.4 ) $ 3,842.7 $ (115.3 ) U.S. government/sponsored agency – Commercial 102.6 (0.4 ) — — U.S. government/sponsored agency obligations — — 24.6 (0.4 ) U.S. Treasury securities 247.5 (2.4 ) — — State & municipal bonds — — 8.1 (0.7 ) Supranational securities — — 49.4 (0.6 ) Total debt securities AFS $ 932.2 $ (10.2 ) $ 3,924.8 $ (117.0 ) |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Components Of Other Assets | The following table presents the components of other assets. Other Assets (dollars in millions) December 31, December 31, 2019 2018 Tax credit investments (1) $ 365.6 $ 313.9 Right of use assets 194.9 - Fair value of derivative financial instruments 190.7 119.9 Property, furniture and fixtures 160.0 160.0 Counterparty receivables 126.5 57.0 Intangible assets, net 66.0 89.2 Current and deferred federal and state tax assets 55.6 137.0 Other (2) 479.9 432.5 Total other assets $ 1,639.2 $ 1,309.5 (1) in this balance are LIHTC of $263.3 million and $217.7 million as of December 31, 2019 and December 31, 2018, respectively, that provide tax benefits to investors in the form of tax deductions from operating losses and tax credits. Refer to Note 1 – Business and Summary of Significant Accounting Policy for additional information. During 2019, 2018 and 2017, the Company recognized total tax benefits of $35.5 million, $34.2 million and $29.6 million, respectively, which included tax credits of $28.0 million, $27.0 million, and $22.6 million recorded in income taxes. During 2019, 2018 and 2017, the Company recorded $29.8 million, $29.1 million and $50.8 million, respectively, in tax provisions under the proportional amortization method. The Company is periodically required to provide additional financial support during the investment period. The Company’s liability for these unfunded commitments are included in Note 12 – Other Liabilities. See also Note 9 – Variable Interest Entities. (2 ) |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Schedule of Detail on Deposit Types | The following table provides detail on deposit types. Deposits — Deposit types (dollars in millions) December 31, December 31, 2019 2018 Interest-bearing $ 33,546.4 $ 29,553.8 Non-interest bearing 1,593.1 1,685.7 Total deposits $ 35,139.5 $ 31,239.5 |
Schedule of Maturities of Time Deposits | The following table presents the maturities of time deposits. Deposits —Maturities (dollars in millions) December 31, Time deposits, remaining contractual maturity: 2019 Within one year 7,671.8 One to two years 2,028.9 Two to three years 322.5 Three to four years 348.5 Four to five years 628.6 Over five years 168.0 Total Time deposits $ 11,168.3 |
Schedule of Certificates of Deposit $100 Thousand or More | The following table presents the maturity profile of time deposits with a denomination of $100,000 or more. Time Deposits $100,000 or More (dollars in millions) December 31, 2019 Time Deposits: Three months or less $ 1,658.5 After three months through six months 1,528.0 After six months through twelve months 2,655.7 After twelve months 3,060.1 Total $ 8,902.3 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Assets and Liabilities in Unconsolidated VIEs | The table below presents potential losses that would be incurred under hypothetical circumstances, such that the value of its interests and any associated collateral declines to zero and assuming no recovery or offset from any economic hedges. The Company believes the possibility is remote under this hypothetical scenario; accordingly, this required disclosure is not an indication of expected loss. Unconsolidated VIEs (dollars in millions) December 31, 2019 December 31, 2018 Securities Partnership Investment Securities Partnership Investment Agency securities $ 5,338.6 $ — $ 5,519.9 $ — Tax credit equity investments — 277.1 — 233.4 Equity investments — 84.0 — 73.5 Total Assets $ 5,338.6 $ 361.1 $ 5,519.9 $ 306.9 Commitments to tax credit investments (1) $ — $ 120.1 $ — $ 97.8 Total Liabilities $ — $ 120.1 $ — $ 97.8 Maximum loss exposure ( 2 ) $ 5,338.6 $ 361.1 $ 5,519.9 $ 306.9 (1) Represents commitments to invest in affordable housing investments, and other investments qualifying for community reinvestment tax credits. These commitments are payable on demand and are recorded in Other liabilities. (2) Maximum loss exposure to the unconsolidated VIEs excludes the liability for representations and warranties and for corporate guarantees, and also excludes servicing advances. |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Borrowings | The following table presents the carrying value of outstanding borrowings. Borrowings (dollars in millions) December 31, 2019 December 31, 2018 CIT Group Inc. Subsidiaries Total Total Unsecured borrowings: Senior $ 3,421.9 $ 546.0 $ 3,967.9 $ 3,413.0 Subordinated notes 494.4 - 494.4 395.4 Secured borrowings: FHLB advances - 1,650.0 1,650.0 3,600.0 Other secured and structured financings - 361.1 361.1 710.4 Total borrowings $ 3,916.3 $ 2,557.1 $ 6,473.4 $ 8,118.8 The following table presents maturity dates of senior unsecured notes by tranches. Senior Unsecured Notes (dollars in millions) Maturity Date Rate (%) Date of Issuance Par Value March 2021 4.125% March 2018 $ 500.0 August 2022 5.000% August 2012 1,147.0 August 2023 5.000% August 2013 750.0 February 2024 4.750% August 2018 500.0 March 2025 5.250% March 2018 500.0 September 2025 2.969% September 2019 550.0 Weighted average rate and total 4.606% $ 3,947.0 |
Schedule Of Contractual Maturities | The following table summarizes contractual maturities of borrowings outstanding, which excludes PAA discounts, original issue discounts and FSA discounts. Contractual Maturities – Borrowings as of December 31, 2019 (dollars in millions) Total 2020 2021 2022 2023 Thereafter Senior Unsecured notes $ 3,998.4 $ — $ 500.0 $ 1,147.0 $ 750.0 $ 1,601.4 Subordinated unsecured notes 500.0 — — — — 500.0 FHLB advances 1,650.0 — 1,650.0 — — — Other secured and structured financings 364.3 14.3 350.0 — — — Total Long-term borrowings $ 6,512.7 $ 14.3 $ 2,500.0 $ 1,147.0 $ 750.0 $ 2,101.4 |
Schedule of FHLB Advances | The following table includes the total outstanding FHLB Advances, and respective pledged assets. FHLB Advances with Pledged Assets (1) (dollars in millions) December 31, 2019 December 31, 2018 FHLB Advances Pledged Assets FHLB Advances Pledged Assets Total $ 1,650.0 $ 6,987.6 $ 3,600.0 $ 6,712.4 (1) For purposes of this table the term "Pledged Assets" means the assets required under the collateral maintenance requirement in connection with FHLB advances at each of the dates. |
Schedule Of Secured Borrowings And Pledged Assets Summary | Set forth in the following table are borrowings and pledged assets related to secured (other than FHLB) and structured financings of CIT-owned subsidiaries. The secured and structured financings as of December 31, 2019 had a weighted average rate of 3.03%, with rates ranging from 3.01% to 3.58%. Other Secured and Structured Financings and Pledged Assets Summary (dollars in millions) December 31, 2019 December 31, 2018 Secured Borrowing Pledged Assets Secured Borrowing Pledged Assets Commercial Finance $ 346.8 $ 2,188.5 $ 695.3 $ 2,833.7 Rail 14.3 17.4 15.1 17.8 Total $ 361.1 $ 2,205.9 $ 710.4 $ 2,851.5 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Fair and Notional Values of Derivative Financial Instruments | The following table presents fair values and notional values of derivative financial instruments, which includes the gross amounts of recognized financial assets and liabilities; the amounts offset in the consolidated balance sheet; the net amounts presented in the consolidated balance sheet; the amounts subject to an enforceable master netting arrangement or similar agreement that were not included in the offset Fair and Notional Values of Derivative Financial Instruments (1) (dollars in millions) December 31, 2019 December 31, 2018 Notional Amount Asset Fair Value Liability Fair Value Notional Amount Asset Fair Value Liability Fair Value Derivatives designated as hedging instruments Foreign exchange contracts $ 676.3 $ - $ (10.6 ) $ 646.1 $ 26.9 $ (0.3 ) Interest rate contracts (2) (4) 1,250.0 - - 250.0 1.9 - Total derivatives designated as hedging instruments 1,926.3 - (10.6 ) 896.1 28.8 (0.3 ) Derivatives not designated as hedging instruments Interest rate contracts (2) (4) 17,588.1 176.9 (14.5 ) 15,889.5 87.8 (59.7 ) Foreign exchange contracts 982.9 13.7 (6.1 ) 832.5 3.1 (19.7 ) Other contracts (3) 714.7 0.1 (0.8 ) 436.6 0.2 - Total derivatives not designated as hedging instruments 19,285.7 190.7 (21.4 ) 17,158.6 91.1 (79.4 ) Gross derivatives fair values presented in the Consolidated Balance Sheets $ 21,212.0 190.7 (32.0 ) $ 18,054.7 119.9 (79.7 ) Less: Gross amounts offset in the Consolidated Balance Sheets - - - - Net amount presented in the Consolidated Balance Sheet 190.7 (32.0 ) 119.9 (79.7 ) Less: Amounts subject to master netting agreements (5) (11.8 ) 11.8 (49.2 ) 49.2 Less: Cash collateral pledged (received) subject to master netting agreements (6) (1.2 ) 14.3 (15.4 ) 0.3 Total net derivative fair value $ 177.7 $ (5.9 ) $ 55.3 $ (30.2 ) (1) (2) (3) (4) (5) (6) |
Derivative Instrument Gains and Losses on Qualifying Hedges Recognized as Interest Expense | Qualifying Hedges (dollars in millions) Years Ended December 31, 2019 2018 2017 Recognized on derivatives $ 3.6 $ 0.3 $ - Recognized on hedged item (3.6 ) (0.3 ) - Net recognized on fair value hedges (No ineffectiveness) $ - $ - $ - |
Derivative Instrument Gains and Losses on Non Qualifying Hedges Recognized as Other Non-interest Income | The following table presents the impact of non-qualifying hedges recognized as other non-interest income on the consolidated statements of income Non Qualifying Hedges (dollars in millions) Years Ended December 31, 2019 2018 2017 Interest rate contracts $ 11.7 $ 17.1 $ 8.6 Foreign currency forward contracts 25.5 (13.5 ) (34.2 ) Other contracts 1.7 13.2 (3.1 ) Total non-qualifying hedges - income statement impact $ 38.9 $ 16.8 $ (28.7 ) |
Pre-tax Net Gains (Losses) Relating to Derivatives Designated as Net Investment Hedges | The following table presents the pre-tax net gains (losses) recorded in the consolidated statements of comprehensive income relating to derivatives designated as net investment hedges: Pre-tax Net Gains (Losses) Relating to Derivatives Designated as Net Investment Hedges (dollars in millions) Amounts reclassified from Amounts Total change in AOCI to income recorded in OCI AOCI for period Contract Type Year ended December 31, 2019 Foreign currency forward contracts - net investment hedges $ - $ (27.3 ) $ (27.3 ) Year ended December 31, 2018 Foreign currency forward contracts - net investment hedges $ 51.5 $ 72.2 $ 20.7 Year ended December 31, 2017 Foreign currency forward contracts - net investment hedges $ 13.4 $ (74.7 ) $ (88.1 ) |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Components of Other Liabilities | The following table presents the components of other liabilities. Other Liabilities (dollars in millions) December 31, December 31, 2019 2018 Accrued expenses and accounts payable $ 565.4 $ 561.5 Lease liabilities (1) 242.6 - Current and deferred taxes payable 167.2 106.9 Commitment to fund tax credit investments 119.5 97.1 Accrued interest payable 92.9 91.7 Fair value of derivative financial instruments 32.0 79.7 Other liabilities (2) 485.1 324.2 Total other liabilities $ 1,704.7 $ 1,261.1 (1) (2) Other consists of liabilities for taxes other than income, equipment maintenance reserves, cash collateral deposits, contingent liabilities and other miscellaneous liabilities. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table summarizes the Company’s assets and liabilities measured at estimated fair value on a recurring basis. Assets and Liabilities Measured at Fair Value on a Recurring Basis (dollars in millions) Total Level 1 Level 2 Level 3 December 31, 2019 Assets Residential MBS – U.S. government/sponsored agency $ 4,773.8 $ — $ 4,773.8 $ — U.S. treasury securities 11.3 4.7 6.6 — Other securities 1,226.7 — 1,159.6 67.1 Total debt securities AFS 6,011.8 4.7 5,940.0 67.1 Securities carried at fair value with changes recorded in net income 47.2 0.1 47.1 — Interest rate contracts — non-qualifying hedges 176.9 — 176.7 0.2 Other derivative — non-qualifying hedges 13.8 — 13.7 0.1 Total derivative assets at fair value — non-qualifying hedges (1) 190.7 — 190.4 0.3 Total $ 6,249.7 $ 4.8 $ 6,177.5 $ 67.4 Liabilities Interest rate contracts — non-qualifying hedges $ (14.5 ) $ — $ (14.5 ) $ — Other derivative— non-qualifying hedges (6.9 ) — (6.1 ) (0.8 ) Total derivative liabilities at fair value — non-qualifying hedges (1) (21.4 ) — (20.6 ) (0.8 ) Foreign currency forward contracts — net investment qualifying hedges (10.6 ) — (10.6 ) — Total derivative liabilities at fair value — qualifying hedges (10.6 ) — (10.6 ) — FDIC True-up liability (68.8 ) — — (68.8 ) Total $ (100.8 ) $ — $ (31.2 ) $ (69.6 ) December 31, 2018 Assets Residential MBS – U.S. government/sponsored agency $ 5,225.2 $ — $ 5,225.2 $ — U.S. treasury securities 251.5 53.9 197.6 — Other securities 454.6 — 388.7 65.9 Total debt securities AFS 5,931.3 53.9 5,811.5 65.9 Securities carried at fair value with changes recorded in net income 44.6 0.1 44.5 — Interest rate contracts — non-qualifying hedges 87.8 — 87.6 0.2 Other derivative — non-qualifying hedges 3.3 — 3.1 0.2 Total derivative assets at fair value — non-qualifying hedges (1) 91.1 — 90.7 0.4 Foreign currency forward contracts — net investment qualifying hedges 26.9 — 26.9 — Interest rate contracts —fair value qualifying hedges 1.9 — 1.9 — Total Derivative assets at fair value — qualifying hedges (1) 28.8 — 28.8 — Total $ 6,095.8 $ 54.0 $ 5,975.5 $ 66.3 Liabilities Interest rate contracts — non-qualifying hedges $ (59.7 ) $ — $ (59.7 ) $ — Other derivative— non-qualifying hedges (19.7 ) — (19.7 ) — Total derivative liabilities at fair value — non-qualifying hedges (1) (79.4 ) — (79.4 ) — Foreign currency forward contracts — net investment qualifying hedges (0.3 ) — (0.3 ) — Total derivative liabilities at fair value — qualifying hedges (0.3 ) — (0.3 ) — FDIC True-up liability (66.9 ) — — (66.9 ) Total $ (146.6 ) $ — $ (79.7 ) $ (66.9 ) (1) |
Quantitative Information about Level 3 Fair Value Measurements-Recurring | The following tables summarize information about significant unobservable inputs related to the Company’s categories of Level 3 financial assets and liabilities measured on a recurring basis as of December 31, 2019 and December 31, 2018. Quantitative Information about Level 3 Fair Value Measurements — Recurring (dollars in millions) Financial Instrument Estimated Fair Value Valuation Technique(s) Significant Unobservable Inputs Range of Inputs Weighted Average December 31, 2019 Assets Debt Securities — AFS $ 67.1 Discounted cash flow Discount Rate 6.0% - 6.2% 6.0% Derivative assets — non qualifying 0.3 Internal valuation model Borrower Rate 2.8% - 5.0% 3.6% Total Assets $ 67.4 Liabilities FDIC True-up liability $ (68.8 ) Discounted cash flow Discount Rate 2.2% 2.2% Derivative liabilities — non-qualifying (0.8 ) Internal valuation model Total Liabilities $ (69.6 ) December 31, 2018 Assets Debt Securities — AFS $ 65.9 Discounted cash flow Discount Rate 6.0% - 6.2% 6.1% Derivative assets — non qualifying 0.4 Internal valuation model Borrower Rate 3.3% - 5.7% 4.4% Total Assets $ 66.3 Liabilities FDIC True-up liability $ (66.9 ) Discounted cash flow Discount Rate 4.5% 4.5% Total Liabilities $ (66.9 ) |
Changes in Estimated Fair Value for Financial Assets and Liabilities Measured on Recurring Basis | The following table summarizes the changes in estimated fair value for all assets and liabilities measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3): Changes in Estimated Fair Value of Level 3 Financial Assets and Liabilities Measured on a Recurring Basis (dollars in millions) Securities- AFS Securities Carried at Fair Value with Changes Recorded in Net Income Derivative Assets- Non- Qualifying Derivative Liabilities- Non- Qualifying FDIC True-up Liability Consideration Holdback Liability Balance as of December 31, 2018 $ 65.9 $ — $ 0.4 $ — $ (66.9 ) $ — Included in earnings 0.1 — (0.1 ) (0.8 ) (1.9 ) — Included in comprehensive income 1.1 — — — — — Balance as of December 31, 2019 $ 67.1 $ — $ 0.3 $ (0.8 ) $ (68.8 ) $ — Balance as of December 31, 2017 $ 385.8 $ 0.4 $ 0.1 $ (14.1 ) $ (65.1 ) $ (46.0 ) Included in earnings 16.8 — 0.3 14.1 (1.8 ) 8.0 Included in comprehensive income (22.7 ) — — — — — Sales, paydowns, and adjustments (314.0 ) (0.4 ) — — — 38.0 Balance as of December 31, 2018 $ 65.9 $ — $ 0.4 $ — $ (66.9 ) $ — |
Carrying Value of Assets Measured at Fair Value on a Non-Recurring Basis | The following table presents assets measured at estimated fair value on a non-recurring basis for which a non-recurring change in fair value has been recorded in the current year: Carrying Value of Assets Measured at Fair Value on a Non-recurring Basis (dollars in millions) Carrying Value Fair Value Measurements at Reporting Date Using: Total Level 1 Level 2 Level 3 Total Gains (Losses) December 31, 2019 Assets held for sale $ 22.6 $ — $ 1.9 $ 20.7 $ 2.2 Impaired loans 244.8 — — 244.8 (73.5 ) Tax credit investments 82.0 — — 82.0 (5.1 ) Total $ 349.4 $ — $ 1.9 $ 347.5 $ (76.4 ) December 31, 2018 Assets held for sale $ 30.4 $ — $ 1.4 $ 29.0 $ 14.2 Impaired loans 111.5 — — 111.5 (42.6 ) Total $ 141.9 $ — $ 1.4 $ 140.5 $ (28.4 ) |
Carrying and Estimated Fair Values of Financial Instruments | The carrying values and estimated fair values of financial instruments not measured at fair value presented below exclude leases and certain other assets and liabilities, which were not required for disclosure. Financial Instruments (dollars in millions) Estimated Fair Value Carrying Value Level 1 Level 2 Level 3 Total December 31, 2019 Financial Assets Cash and interest bearing deposits $ 2,685.6 $ 2,685.6 $ — $ — $ 2,685.6 Assets held for sale (excluding leases) 29.6 — 7.5 22.2 29.7 Loans (excluding leases) 28,744.5 — 1,114.5 27,684.3 28,798.8 Securities purchased under agreement to resell 950.0 — 950.0 — 950.0 Investment securities (1) 217.8 — — 217.8 217.8 Other assets subject to fair value disclosure (2) 418.2 — — 418.2 418.2 Financial Liabilities Deposits (3) (35,156.2 ) — — (35,263.8 ) (35,263.8 ) Borrowings (3) (6,549.6 ) — (6,532.0 ) (365.2 ) (6,897.2 ) Credit balances of factoring clients (1,176.2 ) — — (1,176.2 ) (1,176.2 ) Other liabilities subject to fair value disclosure (4) (831.6 ) — — (831.6 ) (831.6 ) December 31, 2018 Financial Assets Cash and interest bearing deposits $ 1,795.6 $ 1,795.6 $ — $ — $ 1,795.6 Assets held for sale (excluding leases) 68.2 — 5.0 63.3 68.3 Loans (excluding leases) 28,306.0 — 983.4 26,893.4 27,876.8 Securities purchased under agreement to resell 400.0 — 400.0 — 400.0 Investment securities (1) 257.9 — — 257.9 257.9 Other assets subject to fair value disclosure (2) 419.7 — — 423.9 423.9 Financial Liabilities Deposits (3) (31,255.8 ) — — (31,245.0 ) (31,245.0 ) Borrowings (3) (8,194.2 ) — (7,463.0 ) (721.5 ) (8,184.5 ) Credit balances of factoring clients (1,674.4 ) — — (1,674.4 ) (1,674.4 ) Other liabilities subject to fair value disclosure (4) (657.0 ) — — (657.0 ) (657.0 ) (1) See in this note above for debt securities AFS and securities carried at fair value with changes recorded in net income. (2) (3) (4) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders Equity Note [Abstract] | |
Schedule of Common Stock Activity | A roll forward of common stock is presented in the following table. Issued Less Treasury Outstanding Common stock - December 31, 2018 161,073,078 (60,153,371 ) 100,919,707 Restricted stock issued 1,051,131 - 1,051,131 Repurchase of common stock - (6,901,574 ) (6,901,574 ) Shares held to cover taxes on vesting restricted shares and other - (390,778 ) (390,778 ) Employee stock purchase plan participation 64,078 - 64,078 Common stock - December 31, 2019 162,188,287 (67,445,723 ) 94,742,564 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table details the components of AOCI, net of tax: Components of Accumulated Other Comprehensive Loss (dollars in millions) December 31, 2019 December 31, 2018 Gross Unrealized Income Taxes Net Unrealized Gross Unrealized Income Taxes Net Unrealized Foreign currency translation adjustments $ (1.9 ) $ (7.2 ) $ (9.1 ) $ (6.7 ) $ (14.2 ) $ (20.9 ) Changes in benefit plans net (loss) gains and prior service (cost)/credit (51.3 ) (1.3 ) (52.6 ) (74.9 ) 4.7 (70.2 ) Unrealized net gains (loss) on securities AFS 13.6 (4.0 ) 9.6 (117.1 ) 29.9 (87.2 ) Total Other comprehensive (loss) income $ (39.6 ) $ (12.5 ) $ (52.1 ) $ (198.7 ) $ 20.4 $ (178.3 ) The following table details the changes in the components of AOCI, net of income taxes: Changes in Accumulated Other Comprehensive Income (Loss) by Component (dollars in millions) Foreign currency translation adjustments Changes in benefit plan net gain (loss) and prior service (cost) credit Unrealized net gains (losses) on AFS securities Total AOCI Balance as of December 31, 2018 $ (20.9 ) $ (70.2 ) $ (87.2 ) $ (178.3 ) AOCI activity before reclassifications 11.8 17.6 100.4 129.8 Amounts reclassified from AOCI — — (3.6 ) (3.6 ) Net current period AOCI 11.8 17.6 96.8 126.2 Balance as of December 31, 2019 $ (9.1 ) $ (52.6 ) $ 9.6 $ (52.1 ) Balance as of December 31, 2017 $ (8.0 ) $ (54.5 ) $ (24.0 ) $ (86.5 ) Adoption of ASUs 2016-01 and 2018-02 3.3 0.3 (4.1 ) (0.5 ) AOCI activity before reclassifications (12.2 ) (16.5 ) (45.0 ) (73.7 ) Amounts reclassified from AOCI (4.0 ) 0.5 (14.1 ) (17.6 ) Net current period AOCI (16.2 ) (16.0 ) (59.1 ) (91.3 ) Balance as of December 31, 2018 $ (20.9 ) $ (70.2 ) $ (87.2 ) $ (178.3 ) |
Reclassifications out of Accumulated Other Comprehensive Income | Reclassifications Out of AOCI (dollars in millions) Years Ended December 31, 2019 2018 Gross Amount Tax Net Amount Gross Amount Tax Net Amount Income Statement Line Item Foreign currency translation adjustments gains AOCI activity before reclassification $ 4.8 $ 7.0 $ 11.8 $ 3.2 $ (15.4 ) $ (12.2 ) Reclassifications Out of AOCI — — — (10.7 ) 6.7 (4.0 ) Other non-interest income Net change 4.8 7.0 11.8 (7.5 ) (8.7 ) (16.2 ) Changes in benefit plan net loss and prior service (cost)/credit losses AOCI activity before reclassification 23.6 (6.0 ) 17.6 (21.9 ) 5.4 (16.5 ) Reclassifications Out of AOCI — — — 0.6 (0.1 ) 0.5 Operating expenses Net change 23.6 (6.0 ) 17.6 (21.3 ) 5.3 (16.0 ) Unrealized net gains on securities AFS AOCI activity before reclassification 135.5 (35.1 ) 100.4 (59.5 ) 14.5 (45.0 ) Reclassifications Out of AOCI (4.8 ) 1.2 (3.6 ) (19.2 ) 5.1 (14.1 ) Other non-interest income Net change 130.7 (33.9 ) 96.8 (78.7 ) 19.6 (59.1 ) Net current period AOCI $ 159.1 $ (32.9 ) $ 126.2 $ (107.5 ) $ 16.2 $ (91.3 ) |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Capital Requirements [Abstract] | |
Tier 1 Capital And Total Capital Components | The following table summarizes the actual and effective minimum required capital ratios: Capital Components and Ratios (dollars in millions) CIT CIT Bank, N.A. December 31, December 31, December 31, December 31, 2019 2018 2019 2018 Common Equity Tier 1 Capital $ 5,444.4 $ 5,278.2 $ 4,879.6 $ 4,783.6 Tier 1 Capital 5,969.3 5,592.7 4,879.6 4,783.6 Total Capital 6,983.3 6,519.3 5,644.3 5,230.4 Risk-Weighted Assets 45,262.0 44,051.7 37,150.5 35,697.6 Common Equity Tier 1 Capital Ratio Actual 12.0 % 12.0 % 13.1 % 13.4 % Effective minimum ratios under Basel III guidelines (1) 7.0 % 6.375 % 7.0 % 6.375 % Tier 1 Capital Ratio: Actual 13.2 % 12.7 % 13.1 % 13.4 % Effective minimum ratios under Basel III guidelines (1) 8.5 % 7.875 % 8.5 % 7.875 % Total Capital Ratio: Actual 15.4 % 14.8 % 15.2 % 14.7 % Effective minimum ratios under Basel III guidelines (1) 10.5 % 9.875 % 10.5 % 9.875 % Tier 1 Leverage Ratio: Actual 11.9 % 11.6 % 11.0 % 11.6 % Required minimum ratio for capital adequacy purposes 4.0 % 4.0 % 4.0 % 4.0 % (1) Required ratios under Basel III Rule include the fully phased-in capital conservation buffer of 2.5% as of December 31, 2019, and the partially phased-in capital conservation buffer of 1.875% |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of the Basic and Diluted earnings per share: Earnings per Share (dollars in millions, except per share amounts; shares in thousands) Years Ended December 31, 2019 2018 2017 Income from continuing operations $ 529.4 $ 472.1 $ 259.4 Preferred stock dividends 18.9 18.9 9.8 Income from continuing operations available to common shareholders 510.5 453.2 249.6 Income (loss) from discontinued operations 0.5 (25.0 ) 208.8 Net income available to common shareholders $ 511.0 $ 428.2 $ 458.4 Weighted Average Common Shares Outstanding Basic shares outstanding 96,503 117,653 162,290 Stock-based awards (1) 418 1,124 1,660 Diluted shares outstanding 96,921 118,777 163,950 Basic Earnings Per Common Share Data Income from continuing operations $ 5.29 $ 3.85 $ 1.54 Income (loss) from discontinued operations 0.01 (0.21 ) 1.28 Basic income per common share $ 5.30 $ 3.64 $ 2.82 Diluted Earnings Per Common Share Data Income from continuing operations $ 5.27 $ 3.82 $ 1.52 Income (loss) from discontinued operations - (0.21 ) 1.28 Diluted income per common share $ 5.27 $ 3.61 $ 2.80 (1) |
Non-Interest Income (Tables)
Non-Interest Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Noninterest Income [Abstract] | |
Schedule Of Non-Interest Income | Non-interest Income (dollars in millions) Years Ended December 31, 2019 2018 2017 Rental income on operating leases $ 857.7 $ 1,009.0 $ 1,007.4 Other non-interest income 415.2 373.8 364.2 Total non-interest income $ 1,272.9 $ 1,382.8 $ 1,371.6 Other non-interest income Fee revenues $ 116.7 $ 103.5 $ 113.6 Factoring commissions 98.8 102.4 102.9 Gains on leasing equipment, net of impairments 71.1 59.5 43.1 BOLI income 29.1 25.5 7.6 Property tax income 22.2 - - Gains on investment securities, net of impairments 6.2 15.3 28.9 Other revenues 71.1 67.6 68.1 Total other non-interest income $ 415.2 $ 373.8 $ 364.2 |
Non-Interest Expenses (Tables)
Non-Interest Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Noninterest Expense [Abstract] | |
Schedule Of Non-Interest Expenses | Non-Interest Expense (dollars in millions) Years Ended December 31, 2019 2018 2017 Depreciation on operating lease equipment $ 308.6 $ 311.1 $ 296.3 Maintenance and other operating lease expenses 180.7 230.4 222.9 Operating expenses 1,113.2 1,070.0 1,188.5 Goodwill impairment - - 255.6 Loss on debt extinguishments and deposit redemptions 0.5 38.6 220.0 Total non-interest expenses $ 1,603.0 $ 1,650.1 $ 2,183.3 Operating expenses Compensation and benefits $ 566.8 $ 558.4 $ 566.3 Technology 135.8 131.5 127.9 Net occupancy expense 91.3 65.6 67.8 Professional fees 75.9 82.7 132.3 Insurance 51.1 68.3 84.7 Advertising and marketing 40.4 47.6 42.2 Property tax expense 24.1 - - Intangible asset amortization 23.2 23.9 24.7 Restructuring costs 15.1 - 53.0 Other expenses 89.5 92.0 89.6 Total operating expenses $ 1,113.2 $ 1,070.0 $ 1,188.5 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components Of Income Before Provision Benefit For Income Taxes | The following table presents the U.S. and non-U.S. components of income before provision (benefit) for income taxes: Income from Continuing Operations Before Provision (Benefit) for Income Taxes (dollars in millions) Years Ended December 31, 2019 2018 2017 U.S. operations $ 609.2 $ 471.4 $ 251.9 Non-U.S. operations 14.7 165.6 (60.3 ) Income from continuing operations before provision / (benefit) for income taxes $ 623.9 $ 637.0 $ 191.6 |
Schedule Of (Benefit)/Provision For Income Taxes | The provision (benefit) for income taxes is comprised of the following: Provision (Benefit) for Income Taxes (dollars in millions) Years Ended December 31, 2019 2018 2017 Current U.S. federal income tax provision / (benefit) $ (10.9 ) $ 29.5 $ 73.7 Deferred U.S. federal income tax provision 118.1 56.1 24.8 Total federal income tax provision 107.2 85.6 98.5 Current state and local income tax provision / (benefit) (2.1 ) 8.4 (0.7 ) Deferred state and local income tax provision / (benefit) 51.4 24.8 (27.8 ) Total state and local income tax provision / (benefit) 49.3 33.2 (28.5 ) Total non-U.S. income tax provision / (benefit) (61.8 ) 37.6 (31.4 ) Total provision for income taxes $ 94.7 $ 156.4 $ 38.6 Continuing operations $ 94.5 $ 164.9 $ (67.8 ) Discontinued operations 0.2 (8.5 ) 106.4 Total provision for income taxes $ 94.7 $ 156.4 $ 38.6 |
Schedule Of Percentage Of Pretax Income | A reconciliation from the U.S. Federal statutory rate to the Company's actual effective income tax rate is as follows: Percentage of Pretax Income Years Ended December 31 (dollars in millions) Effective Tax Rate 2019 2018 2017 Continuing Operations Pretax Income Income tax expense (benefit) Percent of pretax income Pretax Income Income tax expense (benefit) Percent of pretax Income Pretax Income Income tax expense (benefit) Percent of pretax income Federal income tax rate $ 623.9 $ 131.1 21.0 % $ 637.0 $ 133.8 21.0 % $ 191.6 $ 67.0 35.0 % Increase (decrease) due to: State and local income taxes, net of federal income tax benefit — 32.1 5.1 % — 30.2 4.7 % — 4.4 2.3 % Non-deductible goodwill — — — % — — — % — 58.7 30.7 % Domestic tax credits — (11.1 ) (1.8 )% — (13.2 ) (2.1 )% — (20.7 ) (10.8 )% Cumulative Method Change — Tax Advantaged Investments (1) — — — % — — — % — 26.6 13.9 % Effect of tax law changes — — — % — — — % — (22.6 ) (11.8 )% Difference in tax rates applicable to non-U.S. earnings — (1.4 ) (0.2 )% — 7.2 1.1 % — (1.6 ) (0.8 )% International income subject to U.S. tax — 1.1 0.2 % — 8.7 1.4 % — 1.2 0.6 % Unrecognized tax expense (benefit) — (12.1 ) (1.9 )% — 1.5 0.2 % — (0.2 ) (0.1 )% Deferred income taxes on international unremitted earnings (2) — (53.4 ) (8.6 )% — 12.4 1.9 % — 4.6 2.4 % International Restructuring — — — % — 13.6 2.2 % — (237.9 ) (124.2 )% Valuation allowances — (10.0 ) (1.6 )% — (28.9 ) (4.4 )% — 60.5 31.6 % Other — 18.2 2.9 % — (0.4 ) (0.1 )% — (7.8 ) (4.2 )% Effective Tax Rate — Continuing operations $ 94.5 15.1 % $ 164.9 25.9 % $ (67.8 ) (35.4 )% Discontinued Operation Federal income tax rate $ 0.7 $ 0.1 21.0 % $ (33.4 ) $ (7.0 ) 21.0 % $ 315.2 $ 110.3 35.0 % Increase (decrease) due to: State and local income taxes, net of federal income tax benefit — 0.1 4.7 % — (1.5 ) 4.3 % — 7.2 2.3 % Lower tax rates applicable to non-U.S. earnings — — — % — — — % — (93.2 ) (29.6 )% International income subject to U.S. tax — — — % — — — % — 44.2 14.0 % Deferred income taxes on international unremitted earnings — — % — — % 39.7 12.6 % Other — — — % — — — % — (1.8 ) (0.5 )% Effective Tax Rate — Discontinued operations $ 0.2 25.7 % $ (8.5 ) 25.3 % $ 106.4 33.8 % Total Effective Tax Rate $ 94.7 15.2 % $ 156.4 25.9 % $ 38.6 7.6 % (1) Amount relates to the change in accounting policy for LIHTC. See Note 1 — Business and Summary of Significant Accounting Policies. (2) Amount was primarily driven by the determination that earnings from Canadian operations will be reinvested indefinitely in Canada, thus reversing a previously established deferred tax liability resulting in a tax benefit. |
Schedule Of Tax Effects Of Deferred Income Tax Assets And Liabilities | The tax effects of temporary differences that give rise to deferred income tax assets and liabilities are presented below: Components of Deferred Income Tax Assets and Liabilities (dollars in millions) December 31, 2019 2018 Deferred Tax Assets: Net operating loss (NOL) carry forwards $ 686.2 $ 765.1 Basis difference in loans 177.6 200.9 Provision for credit losses 130.6 127.5 Accrued liabilities and reserves 87.2 91.1 Deferred stock-based compensation 18.0 16.7 Domestic tax credits 117.3 124.1 Capital Loss Carryforward 2.5 11.4 Unrealized net losses on securities AFS — 28.1 Other 48.3 34.3 Total gross deferred tax assets 1,267.7 1,399.2 Deferred Tax Liabilities: Operating leases (1,153.4 ) (1,015.7 ) Loans and direct financing leases (20.8 ) (28.8 ) Basis difference in mortgage backed securities — (0.6 ) Basis difference in federal home loan bank stock (5.5 ) (15.8 ) Non-U.S. unremitted earnings (0.6 ) (55.1 ) Unrealized net gains on securities AFS (5.7 ) — Unrealized foreign exchange gains — (21.0 ) Goodwill and intangibles (23.3 ) (22.7 ) Other (25.0 ) (26.3 ) Total deferred tax liabilities (1,234.3 ) (1,186.0 ) Total net deferred tax asset before valuation allowances 33.4 213.2 Less: Valuation allowances (198.5 ) (229.8 ) Net deferred tax liability after valuation allowances $ (165.1 ) $ (16.6 ) |
Reconciliation Of The Beginning And Ending Amount Of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Unrecognized Tax Benefits (dollars in millions) Liabilities for Unrecognized Tax Benefits Interest / Penalties Grand Total Balance at December 31, 2018 $ 13.8 $ 6.9 $ 20.7 Additions for tax positions related to prior years 15.2 4.5 19.7 Reductions for tax positions of prior years (3.8 ) (2.3 ) (6.1 ) Expiration of statutes of limitations (6.8 ) — (6.8 ) Settlements (5.3 ) (2.8 ) (8.1 ) Foreign currency revaluation 0.3 0.2 0.5 Balance at December 31, 2019 $ 13.4 $ 6.5 $ 19.9 |
Schedule of Earliest Tax Years That Remain Subject to Examination By Major Jurisdiction | The table below presents the earliest tax years that remain subject to examination by major jurisdiction. Jurisdiction December 31, 2019 U.S. Federal 2017 New York State and City 2015 California 2014 Canada 2012 |
Retirement, Postretirement an_2
Retirement, Postretirement and Other Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Changes in Benefit Obligation, Plan assets, Funded status and Net Periodic Benefit Cost | The following tables set forth changes in benefit obligation, plan assets, funded status and net periodic benefit cost of the retirement plans and postretirement plans: Obligations and Funded Status (dollars in millions) Retirement Benefits Post-Retirement Benefits 2019 2018 2019 2018 Change in benefit obligation Benefit obligation at beginning of year $ 414.0 $ 439.8 $ 29.8 $ 34.5 Interest cost 15.8 14.7 1.2 1.2 Actuarial (gain) / loss 26.5 (16.1 ) 3.1 (4.1 ) Benefits paid (29.7 ) (23.7 ) (3.9 ) (3.5 ) Other (0.8 ) (0.7 ) 1.1 1.7 Benefit obligation at end of year 425.8 414.0 31.3 29.8 Change in plan assets Fair value of plan assets at beginning of period 333.4 374.3 — — Actual return on plan assets 70.0 (23.3 ) — — Employer contributions 6.9 6.7 2.8 1.7 Benefits paid (29.7 ) (23.7 ) (3.9 ) (3.5 ) Other (0.8 ) (0.6 ) 1.1 1.8 Fair value of plan assets at end of period 379.8 333.4 — — Funded status at end of year (1) $ (46.0 ) $ (80.6 ) $ (31.3 ) $ (29.8 ) Information for pension plans with a benefit obligation in excess of plan assets Projected benefit obligation $ 425.8 $ 414.0 $ 31.3 $ 29.8 Accumulated benefit obligation $ 425.8 $ 414.0 N/A N/A Fair value of plan assets $ 379.8 $ 333.4 N/A N/A N/A – Not Applicable (1) Company assets of $79.3 million and $83.6 million as of December 31, 2019 and 2018, respectively, related to the non-qualified U.S. executive retirement plan obligation are not included in plan assets but related liabilities are in the benefit obligation |
Net Periodic Benefit Cost and Other Amounts Recognized in OCI | The net periodic benefit cost and other amounts recognized in OCI consisted of the following: Net Periodic Benefit Costs and Other Amounts (dollars in millions) Retirement Benefits Post-Retirement Benefits 2019 2018 2017 2019 2018 2017 Interest cost $ 15.8 $ 14.7 $ 16.0 $ 1.2 $ 1.2 $ 1.2 Expected return on plan assets (16.7 ) (18.9 ) (19.3 ) - - - Other (1) 2.0 1.3 6.1 (1.9 ) (1.0 ) (1.5 ) Net periodic benefit cost (credit) 1.1 (2.9 ) 2.8 (0.7 ) 0.2 (0.3 ) Other Changes in Plan Assets and Benefit Obligations Recognized in OCI Net loss/(gain) (26.8 ) 26.2 (17.1 ) 3.1 (4.1 ) 0.5 Amortization, settlement or curtailment recognition (2.0 ) (1.3 ) (1.5 ) 1.9 1.0 1.6 Total recognized in OCI (28.8 ) 24.9 (18.6 ) 5.0 (3.1 ) 2.1 Total recognized in net periodic benefit cost and OCI $ (27.7 ) $ 22.0 $ (15.8 ) $ 4.3 $ (2.9 ) $ 1.8 (1) $4.7 million curtailment and special termination benefit costs were recorded in discontinued operations in the accompanying financial statements at December 31, 2017. |
Schedule of Net Periodic Benefit Cost and Other Amounts Recognized in AOCI | The net (gain)/loss recognized in OCI for the years ended December 31, 2019, 2018 and 2017 are primarily due to the following factors: Significant Gains and Losses Affecting the Benefit Obligation (dollars in millions) 2019 2018 2017 Asset (Gains)/Losses $ (53.3 ) $ 42.2 $ (26.9 ) Discount Rate Decrease/(Increase) 39.0 (21.5 ) 12.7 Interest Crediting Rate (Decrease)/Increase (8.3 ) 4.3 (2.2 ) Other (6.2 ) (0.1 ) (2.2 ) (Increase)/Decrease in OCI $ (28.8 ) $ 24.9 $ (18.6 ) |
Weighted Average Assumptions Used in Measurement of Benefit Obligations | The weighted average assumptions used in the measurement of benefit obligations are as follows: Weighted Average Assumptions Retirement Benefits Post-Retirement Benefits 2019 2018 2019 2018 Discount rate 3.00 % 4.00 % 3.00 % 4.00 % Interest crediting rate 1.75 % 2.75 % N/A N/A Pre-65 N/A N/A 5.80 % 6.10 % Post-65 N/A N/A 6.50 % 6.90 % Ultimate health care cost trend rate N/A N/A 4.50 % 4.50 % Year ultimate reached N/A N/A 2037 2037 |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Costs | The weighted average assumptions used to determine net periodic benefit costs are as follows: Weighted Average Assumptions Retirement Benefits Post-Retirement Benefits 2019 2018 2019 2018 Discount rate 4.00 % 3.50 % 4.00 % 3.50 % Expected long-term return on plan assets 5.25 % 5.25 % N/A N/A Interest crediting rate 2.75 % 2.25 % N/A N/A N/A – Not Applicable |
Asset Fair Value Measurements | The tables below set forth asset fair value measurements. Fair Value Measurements (dollars in millions) December 31, 2019 Level 1 Level 2 Level 3 Not Classified 1 Total Fair Value Cash $ 1.6 $ — $ — $ — $ 1.6 Common Collective Trust, measured at NAV — — — 378.2 378.2 $ 1.6 $ — $ — $ 378.2 $ 379.8 December 31, 2018 Cash $ 11.8 $ — $ — $ — $ 11.8 Mutual Fund 76.0 — — — 76.0 Exchange Traded Funds 17.7 — — — 17.7 Common Stock 19.6 — — — 19.6 Short Term Investment Fund, measured at NAV 1.2 — — — 1.2 Common Collective Trust, measured at NAV — — — 188.2 188.2 Partnership, measured at NAV — — — 9.4 9.4 Hedge Fund, measured at NAV — — — 9.5 9.5 $ 126.3 $ — $ — $ 207.1 $ 333.4 (1) These investments have been measured using the net asset value per share practical expedient and are not required to be classified in the table above. |
Schedule of Benefits Projected to be Paid from Plan Assets or from General Assets Using Current Actuarial Assumptions | The following table depicts benefits projected to be paid from plan assets or from the Company's general assets calculated using current actuarial assumptions. Actual benefit payments may differ from projected benefit payments. Projected Benefits (dollars in millions) For the years ended December 31, Retirement Benefits Gross Postretirement Benefits Medicare Subsidy Receipts 2020 $ 28.6 $ 2.5 $ 0.2 2021 28.1 2.4 0.2 2022 26.9 2.3 0.1 2023 27.6 2.3 0.1 2024 26.7 2.2 0.1 2025 – 2029 134.9 9.9 0.4 |
Summary of Restricted Stock and RSU Activity | The following tables summarize restricted stock and RSU activity for 2019 and 2018: Stock and Cash — Settled Awards Outstanding Stock-Settled Awards Cash-Settled Awards December 31, 2019 Number of Shares Weighted Average Grant Date Value Number of Shares Weighted Average Grant Date Value Unvested at beginning of period 1,901,266 $ 43.88 13,192 $ 47.92 Vested / unsettled awards at beginning of period 258,169 34.15 — — PSUs - granted to employee 178,075 53.42 — — PSUs - incremental for performance above 2012-14 targets (8,086 ) 32.75 — — RSUs - granted to employees 782,122 50.51 — — RSUs - granted to directors 28,960 50.33 5,244 51.01 Forfeited / cancelled (75,343 ) 45.48 — — Vested / settled awards (1,051,114 ) 37.89 (6,462 ) 44.97 Vested / unsettled awards (207,797 ) 41.58 — — Unvested at end of period 1,806,252 $ 50.14 11,974 $ 50.86 December 31, 2018 Unvested at beginning of period 2,529,441 $ 37.55 15,071 $ 42.22 Vested / unsettled awards at beginning of period 246,057 45.09 — — PSUs - granted to employee 149,067 55.09 — — PSUs - incremental for performance above 2012-14 targets 17,716 45.88 — — RSUs - granted to employees 702,231 51.33 — — RSUs - granted to directors 21,718 51.91 6,350 53.15 Forfeited / cancelled (123,950 ) 41.97 — — Vested / settled awards (1,382,845 ) 39.65 (8,229 ) 41.52 Vested / unsettled awards (258,169 ) 34.15 — — Unvested at end of period 1,901,266 $ 43.88 13,192 47.92 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Commitments | The accompanying table summarizes off-balance sheet credit-related commitments and other purchase and funding commitments: Commitments (dollars in millions) December 31, 2019 December 31, 2018 Due to Expire Within One Year After One Year Total Outstanding Total Outstanding Financing Commitments Financing assets (1) $ 2,445.1 $ 4,014.6 $ 6,459.7 $ 7,136.3 Letters of credit Standby letters of credit 31.4 168.2 199.6 226.2 Other letters of credit 5.2 1.5 6.7 12.0 Deferred purchase agreements 2,060.6 — 2,060.6 1,959.5 Purchase and Funding Commitments Rail and other purchase commitments 813.7 — 813.7 344.8 (1) |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Pre-Tax Income (Loss) | The following table presents segment data related to continuing operations. Segment Pre-tax Income (Loss) (dollars in millions) Commercial Banking Consumer Banking Corporate Total CIT Year Ended December 31, 2019 Interest income $ 1,425.7 $ 364.9 $ 226.2 $ 2,016.8 Interest expense (benefit) 758.3 (125.3 ) 319.0 952.0 Provision (benefit) for credit losses 117.3 (6.5 ) - 110.8 Rental income on operating leases 857.7 - - 857.7 Other non-interest income 331.6 33.8 49.8 415.2 Depreciation on operating lease equipment 308.6 - - 308.6 Maintenance and other operating lease expenses 180.7 - - 180.7 Operating expenses/loss on debt extinguishment and deposit redemption 701.5 345.0 67.2 1,113.7 Income (loss) from continuing operations before provision (benefit) for income taxes $ 548.6 $ 185.5 $ (110.2 ) $ 623.9 Select Period End Balances Loans $ 24,393.4 $ 6,605.5 $ - $ 30,998.9 Credit balances of factoring clients (1,176.2 ) - - (1,176.2 ) Assets held for sale 23.1 8.9 0.1 32.1 Operating lease equipment, net 7,319.7 - - 7,319.7 Year Ended December 31, 2018 Interest income $ 1,333.0 $ 338.9 $ 218.5 $ 1,890.4 Interest expense (benefit) 716.3 (143.5 ) 242.3 815.1 Provision for credit losses 167.1 3.9 - 171.0 Rental income on operating leases 1,009.0 - - 1,009.0 Other non-interest income 320.8 35.0 18.0 373.8 Depreciation on operating lease equipment 311.1 - - 311.1 Maintenance and other operating lease expenses 230.4 - - 230.4 Operating expenses/loss on debt extinguishment and deposit redemption 692.9 369.3 46.4 1,108.6 Income (loss) from continuing operations before provision (benefit) for income taxes $ 545.0 $ 144.2 $ (52.2 ) $ 637.0 Select Period End Balances Loans $ 24,263.4 $ 6,532.0 $ - $ 30,795.4 Credit balances of factoring clients (1,674.4 ) - - (1,674.4 ) Assets held for sale 64.3 3.9 20.2 88.4 Operating lease equipment, net 6,970.6 - - 6,970.6 Year Ended December 31, 2017 Interest income $ 1,248.0 $ 378.1 $ 209.5 $ 1,835.6 Interest expense (benefit) 517.7 (51.8 ) 251.8 717.7 Provision for credit losses 88.7 25.9 - 114.6 Rental income on operating leases 1,007.4 - - 1,007.4 Other non-interest income 291.0 4.1 69.1 364.2 Depreciation on operating lease equipment 296.3 - - 296.3 Maintenance and other operating lease expenses 222.9 - - 222.9 Goodwill impairment 255.6 - - 255.6 Operating expenses/loss on debt extinguishment and deposit redemption 691.7 401.5 315.3 1,408.5 Income (loss) from continuing operations before provision (benefit) for income taxes $ 473.5 $ 6.6 $ (288.5 ) $ 191.6 Select Period End Balances Loans $ 23,159.3 $ 5,954.6 $ - $ 29,113.9 Credit balances of factoring clients (1,468.6 ) - - (1,468.6 ) Assets held for sale 1,334.2 865.6 63.3 2,263.1 Operating lease equipment, net 6,738.9 - - 6,738.9 Geographic Information |
Geographic Region | The following table presents information by major geographic region based upon the location of the Company's legal entities. Geographic Region (dollars in millions) Total Assets (1) Total Revenue from continuing operations Income (loss) from continuing operations before provision (benefit) for income taxes Income (loss) from continuing operations U.S. 2019 $ 50,044.7 $ 3,242.2 $ 609.2 $ 452.9 2018 47,676.3 3,080.7 471.4 344.7 2017 46,825.9 3,046.1 251.9 287.3 Foreign 2019 788.1 47.5 14.7 76.5 2018 861.1 192.5 165.6 127.4 2017 2,452.8 161.1 (60.3 ) (27.9 ) Total consolidated 2019 50,832.8 3,289.7 623.9 529.4 2018 48,537.4 3,273.2 637.0 472.1 2017 49,278.7 3,207.2 191.6 259.4 (1) |
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary Of Intangible Assets | The following table presents the gross carrying value and accumulated amortization for intangible assets, excluding fully amortized intangible assets. Intangible Assets (dollars in millions) December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Core deposit intangibles $ 126.3 $ (79.7 ) $ 46.6 $ 126.3 $ (61.7 ) $ 64.6 Trade names 24.7 (12.7 ) 12.0 24.7 (10.1 ) 14.6 Customer relationships 23.9 (16.2 ) 7.7 23.9 (13.6 ) 10.3 Other 7.4 (7.7 ) (0.3 ) 7.4 (7.7 ) (0.3 ) Total intangible assets $ 182.3 $ (116.3 ) $ 66.0 $ 182.3 $ (93.1 ) $ 89.2 |
Summary Of Intangible Assets Rollforward | The following table presents the changes in intangible assets: Intangible Assets Rollforward (dollars in millions) Core Deposit Intangibles Trade Names Customer Relationships Other Total December 31, 2017 $ 82.7 $ 17.0 $ 13.3 $ - $ 113.0 Amortization (1) (18.1 ) (2.4 ) (3.0 ) (0.3 ) (23.8 ) December 31, 2018 $ 64.6 $ 14.6 $ 10.3 $ (0.3 ) $ 89.2 Amortization (1) (18.0 ) (2.6 ) (2.6 ) - (23.2 ) December 31, 2019 $ 46.6 $ 12.0 $ 7.7 $ (0.3 ) $ 66.0 (1) |
Severance Liabilities (Tables)
Severance Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Severance Liabilities [Abstract] | |
Summary of Liabilities (Pre-Tax) Related to Employee Severance | The following table summarizes liabilities (pre-tax) related to employee severance: Severance Liabilities (dollars in millions) Number of Employees Liability December 31, 2017 538 $ 28.3 Additions and adjustments (25 ) (1.1 ) Utilization (293 ) (13.4 ) December 31, 2018 220 13.8 Additions and adjustments 36 15.1 Utilization (123 ) (11.9 ) December 31, 2019 133 $ 17.0 |
Parent Company Financial Stat_2
Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Parent Company Only Balance Sheet | The following tables present the Parent Company only financial statements: Condensed Parent Company Only Balance Sheets (dollars in millions) December 31, December 31, 2019 2018 Assets: Cash and deposits $ 15.3 $ 17.1 Cash held at bank subsidiary 361.5 680.1 Securities purchased under agreements to resell - 100.0 Receivables from non-bank subsidiaries 2,401.1 2,435.2 Receivables from bank subsidiaries 654.8 305.5 Investment in non-bank subsidiaries 1,155.2 1,166.1 Investment in bank subsidiaries 5,266.3 5,091.0 Goodwill 46.9 46.9 Other assets 872.7 747.8 Total Assets $ 10,773.8 $ 10,589.7 Liabilities and Equity: Borrowings $ 3,916.3 $ 3,808.4 Liabilities to non-bank subsidiaries 158.6 468.9 Liabilities to bank subsidiaries 5.0 2.8 Other liabilities 354.9 363.0 Total Liabilities 4,434.8 4,643.1 Total Stockholders' Equity 6,339.0 5,946.6 Total Liabilities and Equity $ 10,773.8 $ 10,589.7 |
Condensed Parent Company Only Statements Of Income And Comprehensive Income | Condensed Parent Company Only Statements of Income and Comprehensive Income (dollars in millions) Years Ended December 31, 2019 2018 2017 Income Interest income from nonbank subsidiaries $ 123.4 $ 113.4 $ 160.5 Interest income from bank subsidiaries 16.2 19.2 15.4 Interest and dividends on interest bearing deposits and investments 1.7 4.5 7.4 Dividends from nonbank subsidiaries 25.0 31.0 — Dividends from bank subsidiaries 356.0 218.6 359.0 Other non-interest income from subsidiaries 71.5 61.8 178.6 Other non-interest income 39.7 51.6 (127.9 ) Total income 633.5 500.1 593.0 Expenses Interest expense 202.8 222.0 324.7 Interest expense on liabilities to subsidiaries 15.4 40.5 50.3 Other non-interest expenses 156.5 189.9 499.4 Total expenses 374.7 452.4 874.4 Income (loss) before income taxes and equity in undistributed net income of subsidiaries 258.8 47.7 (281.4 ) (Benefit) provision for income taxes (160.9 ) (76.5 ) 163.4 Income (loss) before equity in undistributed net income of subsidiaries 419.7 124.2 (444.8 ) Equity in undistributed net income (loss) of bank subsidiaries 78.4 213.6 (55.6 ) Equity in undistributed net income of nonbank subsidiaries 31.8 109.3 968.6 Net income 529.9 447.1 468.2 Other Comprehensive income (loss), net of tax 126.2 (91.3 ) 53.6 Comprehensive income $ 656.1 $ 355.8 $ 521.8 |
Condensed Parent Company Only Statements Of Cash Flows | Condensed Parent Company Only Statements of Cash Flows (dollars in millions) Years Ended December 31, 2019 2018 2017 Cash Flows from Operations: Net income $ 529.9 $ 447.1 $ 468.2 Equity in undistributed earnings of subsidiaries (110.2 ) (322.9 ) (1,272.0 ) Other operating activities, net (53.0 ) 1,411.1 621.5 Net cash flows provided by (used in) operations 366.7 1,535.3 (182.3 ) Cash Flows from Investing Activities: (Increase) decrease in investments in and advances to subsidiaries (250.7 ) 502.5 9,602.6 Decrease in investment securities and securities purchased under agreements to resell 100.0 50.0 250.3 Other investing activities (16.9 ) (1.8 ) — Net cash flows (used in) provided by investing activities (167.6 ) 550.7 9,852.9 Cash Flows from Financing Activities: Proceeds from the issuance of term debt 98.6 1,879.5 — Repayments of term debt — (1,854.8 ) (7,087.7 ) Net proceeds from issuance of preferred stock 195.1 — 318.0 Repurchase of common stock (340.9 ) (1,626.7 ) (3,431.9 ) Dividends paid (146.7 ) (115.9 ) (113.7 ) Net change in advances from subsidiaries (303.0 ) (376.0 ) 254.0 Other financing activities, net (22.6 ) (71.7 ) (20.7 ) Net cash flows used in financing activities (519.5 ) (2,165.6 ) (10,082.0 ) Net decrease in cash and cash equivalents (320.4 ) (79.6 ) (411.4 ) Cash and cash equivalents, beginning of period 697.2 776.8 1,188.2 Cash and cash equivalents, end of period $ 376.8 $ 697.2 $ 776.8 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Selected Quarterly Financial Data | The following presents quarterly data: Selected Quarterly Financial Data (dollars in millions, except per share amounts) Unaudited Fourth Quarter Third Quarter Second Quarter First Quarter Year Ended December 31, 2019 Interest income $ 481.4 $ 503.4 $ 515.5 $ 516.5 Interest expense 229.8 243.9 242.7 235.6 Provision for credit losses 22.6 26.6 28.6 33.0 Rental income on operating leases 215.3 211.7 213.0 217.7 Other non-interest income 111.3 101.0 106.1 96.8 Depreciation on operating lease equipment 76.4 76.0 76.8 79.4 Maintenance and other operating lease expenses 40.7 41.9 48.3 49.8 Operating expenses 258.5 310.8 267.8 276.1 Loss on debt extinguishment and deposit redemption 0.1 0.1 0.2 0.1 Provision (benefit) for income taxes 49.3 (26.0 ) 33.4 37.8 Income (loss) from discontinued operations, net of taxes - - 0.8 (0.3 ) Net income $ 130.6 $ 142.8 $ 137.6 $ 118.9 Net income applicable to common shareholders $ 121.1 $ 142.8 $ 128.2 $ 118.9 Income from continuing operations applicable to common shareholders $ 121.1 $ 142.8 $ 127.4 $ 119.2 Net income per diluted share $ 1.27 $ 1.50 $ 1.33 $ 1.18 Year Ended December 31, 2018 Interest income $ 492.0 $ 473.6 $ 473.6 $ 451.2 Interest expense 215.5 213.9 205.2 180.5 Provision for credit losses 31.2 38.1 32.9 68.8 Rental income on operating leases 229.8 264.3 261.3 253.6 Other non-interest income 47.5 86.2 135.4 104.7 Depreciation on operating lease equipment 79.5 78.0 77.2 76.4 Maintenance and other operating lease expenses 52.9 56.6 63.5 57.4 Operating expenses 257.9 263.3 267.5 281.3 Loss on debt extinguishment and deposit redemption 15.7 3.5 19.3 0.1 Provision for income taxes 24.9 41.3 57.4 41.3 Income (loss) from discontinued operations, net of taxes 0.1 2.1 (20.5 ) (6.7 ) Net income $ 91.8 $ 131.5 $ 126.8 $ 97.0 Net income applicable to common shareholders $ 82.3 $ 131.5 $ 117.4 $ 97.0 Income from continuing operations applicable to common shareholders $ 82.2 $ 129.4 $ 137.9 $ 103.7 Net (loss) income per diluted share $ 0.78 $ 1.15 $ 0.94 $ 0.74 |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies (Narrative) (Details) | Jan. 01, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($)branchpayment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | Jan. 01, 2018USD ($) | Dec. 31, 2016USD ($) | Aug. 03, 2015USD ($) | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Number of branches | branch | 60 | |||||||||||||||||||
Right of use asset | $ 194,900,000 | $ 194,900,000 | $ 210,000,000 | |||||||||||||||||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | |||||||||||||||||||
Operating lease liability | 242,600,000 | [1] | $ 242,600,000 | [1] | $ 260,000,000 | |||||||||||||||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities | |||||||||||||||||||
Economic life of underlying assets, classification criteria percentage | 25.00% | |||||||||||||||||||
Selling profit or loss at lease commencement | $ 0 | |||||||||||||||||||
Period past due when loans go into non accrual status | 90 days | |||||||||||||||||||
Number of consecutive scheduled payments for TDRs to remain reasonably assured | payment | 6 | |||||||||||||||||||
Minimum value of loans to be individually assessed for impairment | 500,000 | $ 500,000 | ||||||||||||||||||
Reclassification of unrealized investment | $ 200,000 | $ 200,000 | ||||||||||||||||||
Net income | 130,600,000 | $ 142,800,000 | $ 137,600,000 | $ 118,900,000 | $ 91,800,000 | $ 131,500,000 | $ 126,800,000 | $ 97,000,000 | 529,900,000 | $ 447,100,000 | 468,200,000 | |||||||||
Non-interest income | 1,272,900,000 | 1,382,800,000 | 1,371,600,000 | |||||||||||||||||
Provision (benefit) for income taxes | 49,300,000 | $ (26,000,000) | $ 33,400,000 | $ 37,800,000 | 24,900,000 | $ 41,300,000 | $ 57,400,000 | $ 41,300,000 | 94,500,000 | 164,900,000 | (67,800,000) | |||||||||
Tax credit investments and investments in unconsolidated subsidiaries | [2] | 365,600,000 | 313,900,000 | 365,600,000 | 313,900,000 | |||||||||||||||
Current and deferred federal and state tax assets | 55,600,000 | $ 137,000,000 | $ 55,600,000 | 137,000,000 | ||||||||||||||||
Servicing advances, threshold period for allowance | 180 days | |||||||||||||||||||
Percentage of largest amount of tax benefit likely to be realized | 50.00% | |||||||||||||||||||
Performance Shares | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Share based compensation vesting period | 3 years | |||||||||||||||||||
Prepaid Railcar Certification Costs | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Estimated useful life | 10 years | |||||||||||||||||||
Adoption of Proportional Amortization Method | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Net income | (8,800,000) | |||||||||||||||||||
Non-interest income | 29,400,000 | |||||||||||||||||||
Provision (benefit) for income taxes | 38,200,000 | |||||||||||||||||||
Tax credit investments and investments in unconsolidated subsidiaries | (10,500,000) | (10,500,000) | ||||||||||||||||||
Current and deferred federal and state tax assets | 1,800,000 | 1,800,000 | ||||||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Reclassification of unrealized investment | (500,000) | (500,000) | ||||||||||||||||||
Retained Earnings | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Reclassification of unrealized investment | $ 700,000 | 700,000 | $ (1,000,000) | |||||||||||||||||
Net income | $ 529,900,000 | $ 447,100,000 | $ 468,200,000 | |||||||||||||||||
ASU 2016-01 | Accumulated Other Comprehensive Loss | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Reclassification of unrealized investment | $ (1,100,000) | |||||||||||||||||||
ASU 2016-01 | Retained Earnings | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Reclassification of unrealized investment | $ 1,100,000 | |||||||||||||||||||
ASU 2016-13 | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Increase in purchase credit impaired loans reclassified as purchased credit deteriorated loans | 120,000,000 | |||||||||||||||||||
Commercial Banking | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Minimum value of loans to be individually assessed for impairment | 500,000 | $ 500,000 | ||||||||||||||||||
Small Commercial Loans | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Period past due when loans go into non accrual status | 90 days | |||||||||||||||||||
Small Commercial Loans | Impaired Loans | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Minimum value of loans to be individually assessed for impairment | $ 500,000 | $ 500,000 | ||||||||||||||||||
Consumer Loan | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Delinquency period for loan charge offs | 120 days | 120 days | ||||||||||||||||||
Consumer and Small Commercial Borrower | Mortgages, Commercial Loans and Leases | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Period past due when loans go into non accrual status | 90 days | |||||||||||||||||||
Repayment period when loans are reclassified from non accrual status | 6 months | |||||||||||||||||||
Subsequent Event | ASU 2016-13 | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Impact in regulatory capital, first year of adoption | 25.00% | |||||||||||||||||||
Impact in regulatory capital, second year of adoption | 50.00% | |||||||||||||||||||
Impact in regulatory capital, third year of adoption | 75.00% | |||||||||||||||||||
Mutual of Omaha Bank (“MOB”) | Subsequent Event | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Purchase price of acquisition | $ 1,000,000,000 | |||||||||||||||||||
OneWest Bank | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Allowance for credit losses | $ 0 | |||||||||||||||||||
La Jolla Transaction | FDIC True-up Liability | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Number of days after the loss sharing agreement maturity | 45 days | |||||||||||||||||||
First Federal And IndyMac Transaction | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
FDIC true-up liability | $ 0 | $ 0 | ||||||||||||||||||
Maximum | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Interest rate swap agreements maturity period | 2040 | |||||||||||||||||||
Maximum | Small Commercial Loans | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Delinquency period for loan charge offs | 150 days | 150 days | ||||||||||||||||||
Maximum | Small Commercial Loans | Impaired Loans | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Delinquency period for loan charge offs | 150 days | 150 days | ||||||||||||||||||
Maximum | Rail Equipment | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Estimated useful lives | 50 years | |||||||||||||||||||
Maximum | Other Equipment | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Estimated useful lives | 10 years | |||||||||||||||||||
Maximum | Furniture, Fixtures and Equipment | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Estimated useful lives | 7 years | |||||||||||||||||||
Maximum | Buildings | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Estimated useful lives | 40 years | |||||||||||||||||||
Maximum | Subsequent Event | ASU 2016-13 | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Increase in allowance credit loss | 275,000,000 | |||||||||||||||||||
Maximum | Mutual of Omaha Bank (“MOB”) | Subsequent Event | ASU 2016-13 | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Decrease in retained earnings upon estimated capital impact, after tax | 100,000,000 | |||||||||||||||||||
Minimum | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Number of branches | branch | 60 | |||||||||||||||||||
Threshold percentage to lease term is for a major part of the remaining economic life | 75.00% | |||||||||||||||||||
Present value of sum of lease payments and residual value exceeds fair value of underlying asset threshold percentage | 90.00% | |||||||||||||||||||
Period past due when loans go into non accrual status | 90 days | |||||||||||||||||||
Period for which loans are considered past due | 30 days | |||||||||||||||||||
Interest rate swap agreements maturity period | 2020 | |||||||||||||||||||
Minimum | Small Commercial Loans | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Delinquency period for loan charge offs | 90 days | 90 days | ||||||||||||||||||
Minimum | Small Commercial Loans | Impaired Loans | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Delinquency period for loan charge offs | 90 days | 90 days | ||||||||||||||||||
Minimum | Rail Equipment | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Estimated useful lives | 40 years | |||||||||||||||||||
Minimum | Other Equipment | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Estimated useful lives | 3 years | |||||||||||||||||||
Minimum | Furniture, Fixtures and Equipment | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Estimated useful lives | 3 years | |||||||||||||||||||
Minimum | Buildings | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Estimated useful lives | 20 years | |||||||||||||||||||
Minimum | Subsequent Event | ASU 2016-13 | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Increase in allowance credit loss | 225,000,000 | |||||||||||||||||||
Minimum | Mutual of Omaha Bank (“MOB”) | Subsequent Event | ASU 2016-13 | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
Decrease in retained earnings upon estimated capital impact, after tax | $ 75,000,000 | |||||||||||||||||||
[1] | Reflects our obligation as lessee to make lease payments arising from our leases. See the discussion on the new lease accounting standard disclosed in Note 1 — Business and Summary of Significant Accounting Policies and Note 5 — Leases. | |||||||||||||||||||
[2] | Included in this balance are LIHTC of $263.3 million and $217.7 million as of December 31, 2019 and December 31, 2018, respectively, that provide tax benefits to investors in the form of tax deductions from operating losses and tax credits. Refer to Note 1 – Business and Summary of Significant Accounting Policy for additional information. During 2019, 2018 and 2017, the Company recognized total tax benefits of $35.5 million, $34.2 million and $29.6 million, respectively, which included tax credits of $28.0 million, $27.0 million, and $22.6 million recorded in income taxes. During 2019, 2018 and 2017, the Company recorded $29.8 million, $29.1 million and $50.8 million, respectively, in tax provisions under the proportional amortization method. The Company is periodically required to provide additional financial support during the investment period. The Company’s liability for these unfunded commitments are included in Note 12 – Other Liabilities. See also Note 9 – Variable Interest Entities. |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Income (loss) from discontinued operations, net of taxes | $ 800,000 | $ (300,000) | $ 100,000 | $ 2,100,000 | $ (20,500,000) | $ (6,700,000) | $ 500,000 | $ (25,000,000) | $ 208,800,000 | ||
Gain (loss) on sale of discontinued operations, net of taxes | (16,300,000) | 118,600,000 | |||||||||
Discontinued Operations | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Secured borrowings | 195,000,000 | 195,000,000 | |||||||||
Other liabilities | $ 102,000,000 | 102,000,000 | |||||||||
Income (loss) from discontinued operations, net of taxes | $ 0 | $ 500,000 | (25,000,000) | 208,800,000 | |||||||
Gain (loss) on sale of discontinued operations, net of taxes | (16,300,000) | $ 118,600,000 | |||||||||
Operating expenses | $ 33,000,000 | ||||||||||
Discontinued Operations | Service Obligation | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Secured borrowings | $ 152,000,000 |
Discontinued Operations (Schedu
Discontinued Operations (Schedule of Condensed Combined Balance Sheet Discontinued Operations) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Assets of discontinued operations | $ 0 | $ 249.8 | $ 501.3 |
Liabilities of discontinued operations | 297 | ||
Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net loans | 248.1 | ||
Other assets | 1.7 | ||
Assets of discontinued operations | 249.8 | ||
Secured borrowings | 195 | ||
Other liabilities | 102 | ||
Liabilities of discontinued operations | $ 297 |
Discontinued Operations (Sche_2
Discontinued Operations (Schedule of Condensed Combined Statements of Income and Cash Flow of Discontinued Operations) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Income (loss) on sale of discontinued operation, net of taxes | $ (16,300,000) | $ 118,600,000 | ||||||||
Total income (loss) from discontinued operations, net of taxes | $ 800,000 | $ (300,000) | $ 100,000 | $ 2,100,000 | $ (20,500,000) | $ (6,700,000) | $ 500,000 | (25,000,000) | 208,800,000 | |
Discontinued Operations | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Interest income | 3,400,000 | 14,600,000 | 39,500,000 | |||||||
Interest expense | 2,800,000 | 10,500,000 | 109,100,000 | |||||||
Rental income on operating leases | 500,000 | 312,500,000 | ||||||||
Other income | 3,000,000 | 19,900,000 | (13,900,000) | |||||||
Maintenance and other operating lease expenses | 4,200,000 | |||||||||
Operating expenses | 2,900,000 | 35,700,000 | 30,000,000 | |||||||
Loss on debt extinguishment | 39,000,000 | |||||||||
Income (loss) from discontinued operations before provision (benefit) for income taxes | 700,000 | (11,200,000) | 155,800,000 | |||||||
Provision (benefit) for income taxes | 200,000 | (2,500,000) | 65,600,000 | |||||||
Income (loss) on sale of discontinued operation, net of taxes | (16,300,000) | 118,600,000 | ||||||||
Total income (loss) from discontinued operations, net of taxes | $ 0 | 500,000 | (25,000,000) | 208,800,000 | ||||||
Net cash flows (used in) provided by operations | (4,400,000) | 7,200,000 | (5,000,000) | |||||||
Net cash flows provided by investing activities | $ 54,900,000 | $ 148,700,000 | $ 10,391,700,000 |
Loans (Schedule of Loans by Pro
Loans (Schedule of Loans by Product) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | $ 30,998.9 | $ 30,795.4 | $ 29,113.9 |
Commercial Banking | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 25,019.5 | 24,775.1 | |
Commercial Banking | Commercial loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 22,765.1 | 22,285.7 | |
Commercial Banking | Financing leases and leveraged leases | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 2,254.4 | 2,489.4 | |
Consumer Banking | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | $ 5,979.4 | $ 6,020.3 |
Loans (Schedule of Loans by Seg
Loans (Schedule of Loans by Segment, Based on Obligor Location) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 30,998.9 | $ 30,795.4 | $ 29,113.9 |
Domestic | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 29,471.5 | 29,264.8 | |
Foreign | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,527.4 | 1,530.6 | |
Commercial Banking | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 24,393.4 | 24,263.4 | |
Commercial Banking | Domestic | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 22,866 | 22,732.8 | |
Commercial Banking | Foreign | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,527.4 | 1,530.6 | |
Consumer Banking | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 6,605.5 | 6,532 | |
Consumer Banking | Domestic | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 6,605.5 | $ 6,532 |
Loans (Components of Net Invest
Loans (Components of Net Investment in Loans) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Unearned income | $ (430) | $ (778.8) |
Unamortized premiums / (discounts) | 30 | 20.6 |
Accretable yield on PCI loans | (745.4) | (903.8) |
Net unamortized deferred costs and (fees) | $ 50.9 | $ 85.7 |
Loans (Commercial Loans - By Ri
Loans (Commercial Loans - By Risk Rating) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | $ 30,998.9 | $ 30,795.4 | $ 29,113.9 |
Commercial Banking | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 24,393.4 | 24,263.4 | |
Commercial Banking | Commercial Finance | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 13,912.8 | 13,958.1 | |
Commercial Banking | Real Estate Finance | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 5,382.5 | 5,399.7 | |
Commercial Banking | Business Capital | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 5,038.5 | 4,821.9 | |
Commercial Banking | Rail | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 59.6 | 83.7 | |
Consumer Banking | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 6,605.5 | 6,532 | |
Consumer Banking | Consumer and Community Banking - SBA Loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 4,524 | 3,744.5 | |
PCI Loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,277.6 | 1,693.2 | |
PCI Loans | Commercial Banking | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 27.8 | 36.9 | |
PCI Loans | Commercial Banking | Commercial Finance | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 4.7 | |
PCI Loans | Commercial Banking | Real Estate Finance | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 27.8 | 32.2 | |
PCI Loans | Commercial Banking | Business Capital | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
PCI Loans | Commercial Banking | Rail | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
PCI Loans | Consumer Banking | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,249.8 | 1,656.3 | |
PCI Loans | Consumer Banking | Consumer and Community Banking - SBA Loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 1.8 | |
Commercial Banking | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 25,019.5 | 24,775.1 | |
Commercial Banking | Commercial Banking | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 24,393.4 | 24,263.4 | |
Commercial Banking | Commercial Banking | Commercial Finance | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 13,912.8 | 13,958.1 | |
Commercial Banking | Commercial Banking | Real Estate Finance | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 5,382.5 | 5,399.7 | |
Commercial Banking | Commercial Banking | Business Capital | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 5,038.5 | 4,821.9 | |
Commercial Banking | Commercial Banking | Rail | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 59.6 | 83.7 | |
Commercial Banking | Consumer Banking | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 626.1 | 511.7 | |
Commercial Banking | Consumer Banking | Consumer and Community Banking - SBA Loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 626.1 | 511.7 | |
Commercial Banking | PCI Loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 27.8 | 38.7 | |
Commercial Banking | PCI Loans | Commercial Banking | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 27.8 | 36.9 | |
Commercial Banking | PCI Loans | Commercial Banking | Commercial Finance | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 4.7 | |
Commercial Banking | PCI Loans | Commercial Banking | Real Estate Finance | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 27.8 | 32.2 | |
Commercial Banking | PCI Loans | Commercial Banking | Business Capital | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Commercial Banking | PCI Loans | Commercial Banking | Rail | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Commercial Banking | PCI Loans | Consumer Banking | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 1.8 | |
Commercial Banking | PCI Loans | Consumer Banking | Consumer and Community Banking - SBA Loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 1.8 | |
Commercial Banking | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 22,784.8 | 21,684.1 | |
Commercial Banking | Pass | Commercial Banking | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 22,195.2 | 21,237.7 | |
Commercial Banking | Pass | Commercial Banking | Commercial Finance | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 12,601.1 | 11,744.4 | |
Commercial Banking | Pass | Commercial Banking | Real Estate Finance | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 5,007 | 4,977.4 | |
Commercial Banking | Pass | Commercial Banking | Business Capital | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 4,527.5 | 4,433.3 | |
Commercial Banking | Pass | Commercial Banking | Rail | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 59.6 | 82.6 | |
Commercial Banking | Pass | Consumer Banking | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 589.6 | 446.4 | |
Commercial Banking | Pass | Consumer Banking | Consumer and Community Banking - SBA Loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 589.6 | 446.4 | |
Commercial Banking | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,027.2 | 1,136 | |
Commercial Banking | Special Mention | Commercial Banking | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,024.8 | 1,128.9 | |
Commercial Banking | Special Mention | Commercial Banking | Commercial Finance | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 450.7 | 801.2 | |
Commercial Banking | Special Mention | Commercial Banking | Real Estate Finance | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 341 | 162.3 | |
Commercial Banking | Special Mention | Commercial Banking | Business Capital | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 233.1 | 164.9 | |
Commercial Banking | Special Mention | Commercial Banking | Rail | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0.5 | |
Commercial Banking | Special Mention | Consumer Banking | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2.4 | 7.1 | |
Commercial Banking | Special Mention | Consumer Banking | Consumer and Community Banking - SBA Loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2.4 | 7.1 | |
Commercial Banking | Classified- accrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 871.5 | 1,678 | |
Commercial Banking | Classified- accrual | Commercial Banking | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 837.6 | 1,622 | |
Commercial Banking | Classified- accrual | Commercial Banking | Commercial Finance | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 614.3 | 1,212 | |
Commercial Banking | Classified- accrual | Commercial Banking | Real Estate Finance | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 6.3 | 225.6 | |
Commercial Banking | Classified- accrual | Commercial Banking | Business Capital | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 217 | 183.8 | |
Commercial Banking | Classified- accrual | Commercial Banking | Rail | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0.6 | |
Commercial Banking | Classified- accrual | Consumer Banking | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 33.9 | 56 | |
Commercial Banking | Classified- accrual | Consumer Banking | Consumer and Community Banking - SBA Loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 33.9 | 56 | |
Commercial Banking | Classified- non-accrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 308.2 | 238.3 | |
Commercial Banking | Classified- non-accrual | Commercial Banking | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 308 | 237.9 | |
Commercial Banking | Classified- non-accrual | Commercial Banking | Commercial Finance | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 246.7 | 195.8 | |
Commercial Banking | Classified- non-accrual | Commercial Banking | Real Estate Finance | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0.4 | 2.2 | |
Commercial Banking | Classified- non-accrual | Commercial Banking | Business Capital | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 60.9 | 39.9 | |
Commercial Banking | Classified- non-accrual | Commercial Banking | Rail | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Commercial Banking | Classified- non-accrual | Consumer Banking | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0.2 | 0.4 | |
Commercial Banking | Classified- non-accrual | Consumer Banking | Consumer and Community Banking - SBA Loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | $ 0.2 | $ 0.4 |
Loans (Narrative) (Details)
Loans (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average Loans to Value Percentage | 63.00% | 64.00% | ||
Loans individually evaluated for impairment | $ 320,700,000 | $ 247,700,000 | ||
Period past due when loans go into non accrual status | 90 days | |||
Trial modification, amount | $ 5,500,000 | 4,200,000 | $ 12,500,000 | |
Commitments to lend additional funds to borrowers whose loan terms have been modified in TDRs | $ 23,600,000 | $ 6,100,000 | ||
Troubled debt restructuring, payment deferral rate (percentage) | 52.00% | 51.00% | ||
Troubled debt restructuring, covenant relief rate, other (percentage) | 48.00% | 49.00% | ||
Small Commercial Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Period past due when loans go into non accrual status | 90 days | |||
Minimum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans individually evaluated for impairment | $ 500,000 | |||
Period past due when loans go into non accrual status | 90 days | |||
Consumer Banking | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans with terms that permitted negative amortization, unpaid principal balance | $ 0 | |||
Other Non-Interest Income | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Impairment charge on indemnification asset | $ 21,000,000 | |||
First Federal and La Jolla | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
FDIC claim in excess of first threshold | $ 0 | |||
IndyMac Transaction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value of indemnification asset | 0 | 10,800,000 | ||
Indemnification net receivable from the FDIC | $ 0 | 6,400,000 | ||
Reduction in indemnification receivable from mortgages | 29,000,000 | $ 0 | ||
Impairment charge on indemnification asset | 21,000,000 | |||
Indemnification asset amortization | $ 40,000,000 |
Loans (Schedule of Consumer Loa
Loans (Schedule of Consumer Loans LTV Distributions) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | $ 30,998.9 | $ 30,795.4 | $ 29,113.9 |
PCI Loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,277.6 | 1,693.2 | |
Single Family Residential | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 5,979.4 | 6,020.3 | |
Single Family Residential | Greater than 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 61.2 | 111.8 | |
Single Family Residential | 101% - 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 108.1 | 196.1 | |
Single Family Residential | 80% - 100% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 471.1 | 694.4 | |
Single Family Residential | Less than 80% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 5,337.9 | 5,017.1 | |
Single Family Residential | Not Applicable | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1.1 | 0.9 | |
Single Family Residential | Covered Loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 307.8 | 1,102.4 | |
Single Family Residential | Covered Loans | Greater than 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 1.3 | |
Single Family Residential | Covered Loans | 101% - 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 5.3 | |
Single Family Residential | Covered Loans | 80% - 100% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0.3 | 27.3 | |
Single Family Residential | Covered Loans | Less than 80% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 307.5 | 1,068.5 | |
Single Family Residential | Covered Loans | Not Applicable | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Single Family Residential | Covered Loans | PCI Loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 293.7 | 1,654.5 | |
Single Family Residential | Covered Loans | PCI Loans | Greater than 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2.8 | 105.6 | |
Single Family Residential | Covered Loans | PCI Loans | 101% - 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 8.5 | 186.1 | |
Single Family Residential | Covered Loans | PCI Loans | 80% - 100% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 48.1 | 446.8 | |
Single Family Residential | Covered Loans | PCI Loans | Less than 80% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 234.3 | 916 | |
Single Family Residential | Covered Loans | PCI Loans | Not Applicable | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Single Family Residential | Non-covered Loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 4,421.8 | 3,263.4 | |
Single Family Residential | Non-covered Loans | Greater than 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 5.2 | 4.9 | |
Single Family Residential | Non-covered Loans | 101% - 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 6.6 | 4.7 | |
Single Family Residential | Non-covered Loans | 80% - 100% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 183.4 | 220.3 | |
Single Family Residential | Non-covered Loans | Less than 80% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 4,225.5 | 3,032.6 | |
Single Family Residential | Non-covered Loans | Not Applicable | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1.1 | 0.9 | |
Single Family Residential | Non-covered Loans | PCI Loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 956.1 | 0 | |
Single Family Residential | Non-covered Loans | PCI Loans | Greater than 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 53.2 | 0 | |
Single Family Residential | Non-covered Loans | PCI Loans | 101% - 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 93 | 0 | |
Single Family Residential | Non-covered Loans | PCI Loans | 80% - 100% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 239.3 | 0 | |
Single Family Residential | Non-covered Loans | PCI Loans | Less than 80% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 570.6 | 0 | |
Single Family Residential | Non-covered Loans | PCI Loans | Not Applicable | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | $ 0 | $ 0 |
Loans (Delinquency Status) (Det
Loans (Delinquency Status) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 417.3 | $ 400.9 | |
Current | 29,304 | 28,701.3 | |
Total loans | 30,998.9 | 30,795.4 | $ 29,113.9 |
30-59 Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 205 | 209.6 | |
60 to 89 Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 116 | 57.2 | |
90 or More Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 96.3 | 134.1 | |
Commercial Banking | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 353.5 | 301.1 | |
Current | 24,012.1 | 23,925.4 | |
Total loans | 24,393.4 | 24,263.4 | |
Commercial Banking | Commercial Finance | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 135.5 | 128.8 | |
Current | 13,777.3 | 13,824.6 | |
Total loans | 13,912.8 | 13,958.1 | |
Commercial Banking | Real Estate Finance | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 47.2 | 26 | |
Current | 5,307.5 | 5,341.5 | |
Total loans | 5,382.5 | 5,399.7 | |
Commercial Banking | Business Capital | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 170.8 | 141.1 | |
Current | 4,867.7 | 4,680.8 | |
Total loans | 5,038.5 | 4,821.9 | |
Commercial Banking | Rail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 5.2 | |
Current | 59.6 | 78.5 | |
Total loans | 59.6 | 83.7 | |
Commercial Banking | 30-59 Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 173.1 | 158.4 | |
Commercial Banking | 30-59 Past Due | Commercial Finance | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 58.7 | 55.6 | |
Commercial Banking | 30-59 Past Due | Real Estate Finance | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0.6 | 8.9 | |
Commercial Banking | 30-59 Past Due | Business Capital | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 113.8 | 91.1 | |
Commercial Banking | 30-59 Past Due | Rail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 2.8 | |
Commercial Banking | 60 to 89 Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 109.4 | 48.3 | |
Commercial Banking | 60 to 89 Past Due | Commercial Finance | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 27.8 | 0.4 | |
Commercial Banking | 60 to 89 Past Due | Real Estate Finance | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 46.6 | 12 | |
Commercial Banking | 60 to 89 Past Due | Business Capital | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 35 | 35 | |
Commercial Banking | 60 to 89 Past Due | Rail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0.9 | |
Commercial Banking | 90 or More Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 71 | 94.4 | |
Commercial Banking | 90 or More Past Due | Commercial Finance | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 49 | 72.8 | |
Commercial Banking | 90 or More Past Due | Real Estate Finance | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 5.1 | |
Commercial Banking | 90 or More Past Due | Business Capital | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 22 | 15 | |
Commercial Banking | 90 or More Past Due | Rail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 1.5 | |
Consumer Banking | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 63.8 | 99.8 | |
Current | 5,291.9 | 4,775.9 | |
Total loans | 6,605.5 | 6,532 | |
Consumer Banking | Legacy Consumer Mortgage | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 36.5 | 69.4 | |
Current | 795.2 | 1,063.6 | |
Total loans | 2,081.5 | 2,787.5 | |
Consumer Banking | Consumer and Community Banking | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 27.3 | 30.4 | |
Current | 4,496.7 | 3,712.3 | |
Total loans | 4,524 | 3,744.5 | |
Consumer Banking | 30-59 Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 31.9 | 51.2 | |
Consumer Banking | 30-59 Past Due | Legacy Consumer Mortgage | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 15.5 | 25.9 | |
Consumer Banking | 30-59 Past Due | Consumer and Community Banking | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 16.4 | 25.3 | |
Consumer Banking | 60 to 89 Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 6.6 | 8.9 | |
Consumer Banking | 60 to 89 Past Due | Legacy Consumer Mortgage | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3.3 | 5.9 | |
Consumer Banking | 60 to 89 Past Due | Consumer and Community Banking | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3.3 | 3 | |
Consumer Banking | 90 or More Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 25.3 | 39.7 | |
Consumer Banking | 90 or More Past Due | Legacy Consumer Mortgage | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 17.7 | 37.6 | |
Consumer Banking | 90 or More Past Due | Consumer and Community Banking | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 7.6 | 2.1 | |
PCI Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans | 1,277.6 | 1,693.2 | |
PCI Loans | Commercial Banking | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans | 27.8 | 36.9 | |
PCI Loans | Commercial Banking | Commercial Finance | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans | 0 | 4.7 | |
PCI Loans | Commercial Banking | Real Estate Finance | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans | 27.8 | 32.2 | |
PCI Loans | Commercial Banking | Business Capital | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans | 0 | 0 | |
PCI Loans | Commercial Banking | Rail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans | 0 | 0 | |
PCI Loans | Consumer Banking | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans | 1,249.8 | 1,656.3 | |
PCI Loans | Consumer Banking | Legacy Consumer Mortgage | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans | 1,249.8 | 1,654.5 | |
PCI Loans | Consumer Banking | Consumer and Community Banking | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans | $ 0 | $ 1.8 |
Loans (Loans on Non-accrual Sta
Loans (Loans on Non-accrual Status) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | $ 326.3 | $ 282.3 |
Repossessed assets and OREO | 20.1 | 33 |
Total non-performing assets | 346.4 | 315.3 |
Total accruing loans past due 90 days or more | 36.9 | 35.6 |
Commercial Banking | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 308 | 237.9 |
Total accruing loans past due 90 days or more | 25.6 | 21.9 |
Commercial Banking | Commercial Finance | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 246.7 | 195.8 |
Commercial Banking | Real Estate Finance | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 0.4 | 2.2 |
Commercial Banking | Business Capital | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 60.9 | 39.9 |
Consumer Banking | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 18.3 | 38.3 |
Total accruing loans past due 90 days or more | 11.3 | 13.7 |
Consumer Banking | Consumer and Community Banking | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 4 | 6.1 |
Consumer Banking | Legacy Consumer Mortgages | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 14.3 | 32.2 |
Corporate | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 0 | 6.1 |
Held for Investment | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 325.3 | 276.2 |
Held for Investment | Commercial Banking | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 308 | 237.9 |
Held for Investment | Commercial Banking | Commercial Finance | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 246.7 | 195.8 |
Held for Investment | Commercial Banking | Real Estate Finance | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 0.4 | 2.2 |
Held for Investment | Commercial Banking | Business Capital | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 60.9 | 39.9 |
Held for Investment | Consumer Banking | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 17.3 | 38.3 |
Held for Investment | Consumer Banking | Consumer and Community Banking | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 4 | 6.1 |
Held for Investment | Consumer Banking | Legacy Consumer Mortgages | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 13.3 | 32.2 |
Held for Investment | Corporate | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 0 | 0 |
Held for Sale | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 1 | 6.1 |
Held for Sale | Commercial Banking | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 0 | 0 |
Held for Sale | Commercial Banking | Commercial Finance | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 0 | 0 |
Held for Sale | Commercial Banking | Real Estate Finance | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 0 | 0 |
Held for Sale | Commercial Banking | Business Capital | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 0 | 0 |
Held for Sale | Consumer Banking | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 1 | 0 |
Held for Sale | Consumer Banking | Consumer and Community Banking | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 0 | 0 |
Held for Sale | Consumer Banking | Legacy Consumer Mortgages | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 1 | 0 |
Held for Sale | Corporate | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | $ 0 | $ 6.1 |
Loans (Schedule of Loans In Pro
Loans (Schedule of Loans In Process of Foreclosure and OREO) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Loans In Process Of Foreclosure [Line Items] | ||
Loans in process of foreclosure | $ 38.9 | $ 146.7 |
Non-PCI | ||
Loans In Process Of Foreclosure [Line Items] | ||
Loans in process of foreclosure | 13.5 | 24.1 |
OREO | ||
Loans In Process Of Foreclosure [Line Items] | ||
Loans in process of foreclosure | 17.7 | 32 |
PCI Loans | ||
Loans In Process Of Foreclosure [Line Items] | ||
Loans in process of foreclosure | $ 25.4 | $ 122.6 |
Loans (Impaired Loans) (Details
Loans (Impaired Loans) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | ||
Recorded investment, total | $ 1,598.3 | $ 1,940.9 |
Unpaid principal balance, total | 2,325.3 | 2,785 |
Related Allowance | 113.6 | 65.8 |
Average Recorded Investment, total | 1,789 | 2,049.2 |
PCI Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment, total | 1,277.6 | 1,693.2 |
Unpaid principal balance, total | 1,936.1 | 2,489.9 |
Related Allowance | 17.4 | 18.4 |
Average Recorded Investment, total | 1,504.4 | 1,829.2 |
Impaired Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment, total | 320.7 | 247.7 |
Unpaid principal balance, total | 389.2 | 295.1 |
Related Allowance | 96.2 | 47.4 |
Average Recorded Investment, total | 284.6 | 220 |
Commercial Banking | Commercial Finance | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance, Recorded Investment | 46.5 | 89.4 |
With related allowance, recorded investment | 223.9 | 109.2 |
With no related allowance, Unpaid Principal Balance | 69 | 112.1 |
With related allowance, unpaid principal balance | 267.3 | 128.2 |
Related Allowance | 86 | 46.4 |
With no related allowance, Average Recorded Investment | 68 | 70.7 |
With related allowance, average recorded investment | 166.6 | 107.8 |
Commercial Banking | Commercial Finance | PCI Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment, total | 4.7 | |
Unpaid principal balance, total | 9 | |
Related Allowance | 0.4 | |
Commercial Banking | Business Capital | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance, Recorded Investment | 4.8 | 7.1 |
With related allowance, recorded investment | 19.4 | 3.8 |
With no related allowance, Unpaid Principal Balance | 5.5 | 9.5 |
With related allowance, unpaid principal balance | 19.4 | 3.8 |
Related Allowance | 10 | 1 |
With no related allowance, Average Recorded Investment | 6 | 9.4 |
With related allowance, average recorded investment | 11.6 | 1.9 |
Commercial Banking | Real Estate Finance | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance, Recorded Investment | 2.3 | |
With no related allowance, Unpaid Principal Balance | 2.3 | |
With no related allowance, Average Recorded Investment | 1.6 | 1.4 |
With related allowance, average recorded investment | 0.8 | 0.5 |
Commercial Banking | Real Estate Finance | PCI Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment, total | 27.8 | 32.2 |
Unpaid principal balance, total | 30.4 | 37.7 |
Related Allowance | 9.8 | 8.8 |
Consumer Banking | Consumer and Community Banking | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance, Recorded Investment | 4 | 4.4 |
With related allowance, recorded investment | 0.1 | |
With no related allowance, Unpaid Principal Balance | 4 | 4.4 |
With related allowance, unpaid principal balance | 0.2 | |
With no related allowance, Average Recorded Investment | 4.9 | 1.8 |
With related allowance, average recorded investment | 0.1 | |
Consumer Banking | Consumer and Community Banking | PCI Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment, total | 1.8 | |
Unpaid principal balance, total | 2.3 | |
Related Allowance | 0 | |
Consumer Banking | LCM | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance, Recorded Investment | 20.6 | 31.5 |
With related allowance, recorded investment | 1.4 | |
With no related allowance, Unpaid Principal Balance | 22.4 | 34.8 |
With related allowance, unpaid principal balance | 1.4 | |
Related Allowance | 0.2 | |
With no related allowance, Average Recorded Investment | 24.7 | $ 26.4 |
With related allowance, average recorded investment | $ 0.4 |
Loans (Impaired Loans) (Parenth
Loans (Impaired Loans) (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | ||
Interest income recorded | $ 2.1 | $ 1 |
Loans (Purchased Credit Impaire
Loans (Purchased Credit Impaired Loans) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Impaired [Line Items] | ||
Carrying Value | $ 1,598.3 | $ 1,940.9 |
Unpaid Principal Balance | 2,325.3 | 2,785 |
Allowance for Loan Losses | 113.6 | 65.8 |
Commercial Banking | Commercial Finance | ||
Financing Receivable, Impaired [Line Items] | ||
Allowance for Loan Losses | 86 | 46.4 |
PCI Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Carrying Value | 1,277.6 | 1,693.2 |
Unpaid Principal Balance | 1,936.1 | 2,489.9 |
Allowance for Loan Losses | 17.4 | 18.4 |
PCI Loans | Commercial Banking | Real Estate Finance | ||
Financing Receivable, Impaired [Line Items] | ||
Carrying Value | 27.8 | 32.2 |
Unpaid Principal Balance | 30.4 | 37.7 |
Allowance for Loan Losses | 9.8 | 8.8 |
PCI Loans | Commercial Banking | Commercial Finance | ||
Financing Receivable, Impaired [Line Items] | ||
Carrying Value | 4.7 | |
Unpaid Principal Balance | 9 | |
Allowance for Loan Losses | 0.4 | |
PCI Loans | Consumer Banking | Legacy Consumer Mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Carrying Value | 1,249.8 | 1,654.5 |
Unpaid Principal Balance | 1,905.7 | 2,440.9 |
Allowance for Loan Losses | $ 7.6 | 9.2 |
PCI Loans | Consumer Banking | Consumer and Community Banking | ||
Financing Receivable, Impaired [Line Items] | ||
Carrying Value | 1.8 | |
Unpaid Principal Balance | 2.3 | |
Allowance for Loan Losses | $ 0 |
Loans (Summary of Carrying Valu
Loans (Summary of Carrying Value of Commercial PCI Loans (Details) - Commercial Banking - PCI Loans - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 27.8 | $ 36.9 |
Non- criticized | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 20.7 | 14.6 |
Criticized | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 7.1 | 22.3 |
Commercial Finance | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 4.7 |
Commercial Finance | Non- criticized | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial Finance | Criticized | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 4.7 |
Real Estate Finance | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 27.8 | 32.2 |
Real Estate Finance | Non- criticized | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 20.7 | 14.6 |
Real Estate Finance | Criticized | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 7.1 | $ 17.6 |
Loans (Schedule of Changes to t
Loans (Schedule of Changes to the Accretable Yield for PCI Loans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Beginning Balance | $ 903.8 | $ 1,063.7 | $ 1,261.4 |
Accretion into interest income | (146.9) | (167.5) | (204.6) |
Reclassification from non-accretable difference | 19.2 | 17.8 | 38.5 |
Disposals and Other | (30.7) | (10.2) | (31.6) |
Ending Balance | $ 745.4 | $ 903.8 | $ 1,063.7 |
Loans (Summary of Recorded Inve
Loans (Summary of Recorded Investments of TDRs (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Recorded Investment | $ 148.8 | $ 87.6 | $ 103.1 |
% Total TDR | 100.00% | 100.00% | 100.00% |
Percent non-accrual | 71.00% | 79.00% | 63.00% |
Commercial Banking | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Recorded Investment | $ 129.5 | $ 70.4 | $ 86.2 |
% Total TDR | 87.00% | 80.00% | 84.00% |
Consumer Banking | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Recorded Investment | $ 19.3 | $ 17.2 | $ 16.9 |
% Total TDR | 13.00% | 20.00% | 16.00% |
Loans (Summary of Recorded In_2
Loans (Summary of Recorded Investments of Modifications) (Details) - Commercial Loan - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Recorded investment related to modifications qualifying as TDRs that occurred during the years | $ 89.9 | $ 69 | $ 92.5 |
Recorded investment at the time of default of TDRs that experienced a payment default (payment default is one missed payment) during the years and for which the payment default occurred within one year of the modification | $ 23.2 | $ 21.8 | $ 41.1 |
Allowance For Loan Losses (Sche
Allowance For Loan Losses (Schedule of Allowance for Loan Losses and Recorded Investment in Finance Receivables) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | $ 489.7 | $ 431.1 | |||
Provision (benefit) for credit losses | 110.8 | 171 | |||
Other | 4.4 | 3 | |||
Gross charge-offs | (153.9) | (142.8) | |||
Recoveries | 31.6 | 27.4 | |||
Allowance balance - end of period | 482.6 | 489.7 | |||
Allowance balance | |||||
Loans individually evaluated for impairment | $ 96.2 | $ 47.4 | |||
Loans collectively evaluated for impairment | 369 | 423.9 | |||
Allowance for loan losses | 489.7 | 431.1 | 482.6 | 489.7 | $ 431.1 |
Other reserves | 37.1 | 41.5 | |||
Loans receivables | |||||
Loans individually evaluated for impairment | 320.7 | 247.7 | |||
Loans collectively evaluated for impairment | 29,400.6 | 28,854.5 | |||
Ending balance | $ 30,998.9 | $ 30,795.4 | 29,113.9 | ||
Percent of loans to total loans | 100.00% | 100.00% | |||
PCI Loans | |||||
Loans receivables | |||||
Ending balance | $ 1,277.6 | $ 1,693.2 | |||
PCI Loans | OneWest Bank | |||||
Allowance balance | |||||
Loans acquired with deteriorated credit quality | 17.4 | 18.4 | |||
Loans receivables | |||||
Loans acquired with deteriorated credit quality | 1,277.6 | 1,693.2 | |||
Commercial Banking | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | 460.2 | 402.2 | |||
Provision (benefit) for credit losses | 117.3 | 167.1 | |||
Other | 5 | 3 | |||
Gross charge-offs | (151.2) | (138.7) | |||
Recoveries | 29.1 | 26.6 | |||
Allowance balance - end of period | 460.4 | 460.2 | |||
Allowance balance | |||||
Loans individually evaluated for impairment | 96 | 47.4 | |||
Loans collectively evaluated for impairment | 354.6 | 403.6 | |||
Allowance for loan losses | 460.4 | 402.2 | 460.4 | 460.2 | 402.2 |
Other reserves | 36.4 | 41.4 | |||
Loans receivables | |||||
Loans individually evaluated for impairment | 294.6 | 211.8 | |||
Loans collectively evaluated for impairment | 24,071 | 24,014.7 | |||
Ending balance | $ 24,393.4 | $ 24,263.4 | |||
Percent of loans to total loans | 78.70% | 78.80% | |||
Commercial Banking | PCI Loans | |||||
Loans receivables | |||||
Ending balance | $ 27.8 | $ 36.9 | |||
Commercial Banking | PCI Loans | OneWest Bank | |||||
Allowance balance | |||||
Loans acquired with deteriorated credit quality | 9.8 | 9.2 | |||
Loans receivables | |||||
Loans acquired with deteriorated credit quality | 27.8 | 36.9 | |||
Consumer Banking | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | 29.5 | 28.9 | |||
Provision (benefit) for credit losses | (6.5) | 3.9 | |||
Other | (0.6) | ||||
Gross charge-offs | (2.7) | (4.1) | |||
Recoveries | 2.5 | 0.8 | |||
Allowance balance - end of period | 22.2 | 29.5 | |||
Allowance balance | |||||
Loans individually evaluated for impairment | 0.2 | ||||
Loans collectively evaluated for impairment | 14.4 | 20.3 | |||
Allowance for loan losses | $ 22.2 | $ 28.9 | 22.2 | 29.5 | $ 28.9 |
Other reserves | 0.7 | 0.1 | |||
Loans receivables | |||||
Loans individually evaluated for impairment | 26.1 | 35.9 | |||
Loans collectively evaluated for impairment | 5,329.6 | 4,839.8 | |||
Ending balance | $ 6,605.5 | $ 6,532 | |||
Percent of loans to total loans | 21.30% | 21.20% | |||
Consumer Banking | PCI Loans | |||||
Loans receivables | |||||
Ending balance | $ 1,249.8 | $ 1,656.3 | |||
Consumer Banking | PCI Loans | OneWest Bank | |||||
Allowance balance | |||||
Loans acquired with deteriorated credit quality | 7.6 | 9.2 | |||
Loans receivables | |||||
Loans acquired with deteriorated credit quality | $ 1,249.8 | $ 1,656.3 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Line Items] | ||
Lessee, operating lease, option to extend | true | |
Lessee, operating lease, option to terminate | true | |
Lessee, future operating lease commitments, undiscounted | $ 309.2 | |
Accumulated depreciation | 1,400 | $ 1,200 |
Morristown, NJ | ||
Leases [Line Items] | ||
Lessee, future operating lease commitments, undiscounted | $ 108 | |
Lessee, future operating lease, term of contract | 15 years | |
Maximum | ||
Leases [Line Items] | ||
Lessee, operating lease, remaining lease term | 14 years | |
Lessee, operating lease, sublease remaining lease term | 2 years |
Leases (Schedule of Supplementa
Leases (Schedule of Supplemental Balance Sheet and Cash Flow Information Related to Leases) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | ||
Leases [Abstract] | |||
ROU assets | $ 194.9 | $ 210 | |
Lease liabilities | $ 242.6 | [1] | $ 260 |
Weighted-average remaining lease terms | 9 years | ||
Weighted-average discount rate | 4.77% | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 45.8 | ||
ROU assets obtained in exchange for new lease liabilities | $ 18 | ||
[1] | Reflects our obligation as lessee to make lease payments arising from our leases. See the discussion on the new lease accounting standard disclosed in Note 1 — Business and Summary of Significant Accounting Policies and Note 5 — Leases. |
Leases (Maturities of Lease Lia
Leases (Maturities of Lease Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | |
Leases [Abstract] | |||
2020 | $ 47.1 | ||
2021 | 35 | ||
2022 | 28.4 | ||
2023 | 28 | ||
2024 | 27.7 | ||
Thereafter | 143 | ||
Total undiscounted lease payments | 309.2 | ||
Difference between undiscounted cash flows and discounted cash flows | (66.6) | ||
Lease liabilities, at present value | $ 242.6 | [1] | $ 260 |
[1] | Reflects our obligation as lessee to make lease payments arising from our leases. See the discussion on the new lease accounting standard disclosed in Note 1 — Business and Summary of Significant Accounting Policies and Note 5 — Leases. |
Leases (Components of Operating
Leases (Components of Operating Lease Expense Included in Operating Expenses) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($) | ||
Leases [Abstract] | ||
Operating lease cost | $ 43.1 | [1] |
Variable lease cost | 10.6 | |
Sublease income | (14.9) | |
Total operating lease expense | $ 38.8 | |
[1] | Includes short-term lease cost which is immaterial. |
Leases (Schedule of Net Book Va
Leases (Schedule of Net Book Value of Operating Lease Equipment by Equipment Type) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Lessor Lease Description [Line Items] | |||||
Operating lease equipment, net | $ 7,319.7 | [1] | $ 6,970.6 | [1] | $ 6,738.9 |
Railcars and Locomotives | |||||
Lessor Lease Description [Line Items] | |||||
Operating lease equipment, net | 6,706 | 6,420.7 | |||
Other Equipment | |||||
Lessor Lease Description [Line Items] | |||||
Operating lease equipment, net | $ 613.7 | $ 549.9 | |||
[1] | Includes off-lease Rail equipment of $519.1 million and $380.4 million at December 31, 2019 and December 31, 2018, respectively. |
Leases (Schedule of Net Book _2
Leases (Schedule of Net Book Value of Operating Lease Equipment by Equipment Type) (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Off-lease rail equipment | $ 519.1 | $ 380.4 |
Leases (Components of Finance L
Leases (Components of Finance Lease Net Investment on Discounted Basis) (Details) $ in Millions | Dec. 31, 2019USD ($) | |
Leases [Abstract] | ||
Lease receivables | $ 1,905.3 | |
Unguaranteed residual assets | 309.4 | |
Total net investment in finance leases | 2,214.7 | |
Leveraged lease net investment | 39.7 | [1] |
Total | $ 2,254.4 | |
[1] | Leveraged leases are reported net of $56.4 million of non-recourse debt. Our leveraged lease arrangements commenced before the ASC 842 effective date and continue to be reported under the leveraged lease accounting model. ASC 842 eliminated leveraged lease accounting for new leases |
Leases (Components of Finance_2
Leases (Components of Finance Lease Net Investment on Discounted Basis) (Parenthetical) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Leverage leases, net of non-recourse debt | $ 56.4 |
Leases (Schedule of Lease Incom
Leases (Schedule of Lease Income Related to Company's Operating and Finance Leases) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($) | ||
Leases [Abstract] | ||
Lease income – Operating leases | $ 800.8 | |
Variable lease income – Operating leases | 56.9 | [1] |
Rental income on operating leases | 857.7 | |
Interest income - Sales type and direct financing leases | 194 | |
Variable lease income included in Other non-interest income | 46 | [2] |
Leveraged lease income | 8.8 | |
Total lease income | $ 1,106.5 | |
[1] | Primarily includes per diem railcar operating lease rental income earned on a time or mileage usage basis. | |
[2] | Includes leased equipment property tax reimbursements due from customers of $22.2 million for the year ended December 31, 2019 and revenue related to insurance coverage on Business Capital leased equipment of $23.8 million for the year ended December 31, 2019. |
Leases (Schedule of Lease Inc_2
Leases (Schedule of Lease Income Related to Company's Operating and Finance Leases) (Parenthetical) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Leased equipment property tax reimbursements due from customers | $ 22.2 |
Revenue related to insurance coverage Commercial Finance leased equipment | $ 23.8 |
Leases (Maturity Analysis of Op
Leases (Maturity Analysis of Operating Lease Payments) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 644.5 |
2021 | 478.1 |
2022 | 325.1 |
2023 | 193.7 |
2024 | 102.8 |
Thereafter | 69.3 |
Total | $ 1,813.5 |
Leases (Maturity Analysis of Le
Leases (Maturity Analysis of Lease Receivables - Sales Type and Direct Financing Leases) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 832.2 |
2021 | 605.3 |
2022 | 383.4 |
2023 | 209.4 |
2024 | 76.6 |
Thereafter | 31.4 |
Total undiscounted cash flows | 2,138.3 |
Difference between undiscounted cash flows and discounted cash flows | 233 |
Lease receivables, at present value | $ 1,905.3 |
Investment Securities (Schedule
Investment Securities (Schedule of Investment Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Debt securities | $ 6,011.8 | $ 5,931.3 |
Securities carried at fair value with changes recorded in net income | 47.2 | 44.6 |
Total investment securities | 6,276.8 | 6,233.8 |
Non-marketable securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Total investment securities | $ 217.8 | $ 257.9 |
Investment Securities (Schedu_2
Investment Securities (Schedule of Investment Securities) (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Investments Debt And Equity Securities [Abstract] | ||
Restricted Stock of FRB and FHLB | $ 187.9 | $ 242.5 |
Non-marketable investments without readily determinable fair values | $ 29.9 | $ 15.4 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | ||||
Realized investment gains excluding losses from other than temporary impairment ("OTTI") | $ 4,800,000 | $ 16,500,000 | $ 30,000,000 | |
Cash and interest bearing deposits | 1,695,500,000 | 1,596,800,000 | 1,440,100,000 | |
Accretable yield on PCI securities balance | 0 | 0 | 101,700,000 | $ 165,000,000 |
Accretion into interest income | 7,800,000 | 23,400,000 | ||
Disposals | 93,000,000 | 40,100,000 | ||
Equity securities carried at fair value with changes recorded in net income, amortized cost | 48,200,000 | 46,900,000 | ||
Securities carried at fair value with changes recorded in net income | 47,200,000 | 44,600,000 | ||
Equity securities carried at fair value with changes recorded in net income, unrealized losses | 1,000,000 | $ 2,300,000 | ||
OTTI credit-related losses, PCI securities | $ 0 | $ 1,100,000 |
Investment Securities (Schedu_3
Investment Securities (Schedule of Interest and Dividend Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | |||
Interest income - debt securities | $ 187.9 | $ 163.1 | $ 128.9 |
Interest income – interest-bearing cash | 37.1 | 42.3 | 57.7 |
Dividends – equity securities | 8.5 | 13.2 | 10.9 |
Total interest and dividends | $ 233.5 | $ 218.6 | $ 197.5 |
Investment Securities (Amortize
Investment Securities (Amortized Cost and Fair Value of AFS and HTM Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Debt securities, Amortized Cost | $ 5,998.2 | $ 6,048.5 |
Debt securities, Unrealized Gains Gross | 37.5 | 10 |
Debt securities, Unrealized Losses Gross | (23.9) | (127.2) |
Debt securities, Fair Value | 6,011.8 | 5,931.3 |
U.S. government/sponsored agency – Residential | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt securities, Amortized Cost | 4,766.4 | 5,341.2 |
Debt securities, Unrealized Gains Gross | 24.1 | 6.7 |
Debt securities, Unrealized Losses Gross | (16.7) | (122.7) |
Debt securities, Fair Value | 4,773.8 | 5,225.2 |
U.S. government/sponsored agency – Commercial | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt securities, Amortized Cost | 554.5 | 291.8 |
Debt securities, Unrealized Gains Gross | 12.1 | 3.2 |
Debt securities, Unrealized Losses Gross | (1.8) | (0.4) |
Debt securities, Fair Value | 564.8 | 294.6 |
U.S. government/sponsored agency obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt securities, Amortized Cost | 449.4 | 34.9 |
Debt securities, Unrealized Gains Gross | 0 | 0 |
Debt securities, Unrealized Losses Gross | (5.4) | (0.4) |
Debt securities, Fair Value | 444 | 34.5 |
U.S. Treasury securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt securities, Amortized Cost | 11.2 | 253.9 |
Debt securities, Unrealized Gains Gross | 0.1 | 0 |
Debt securities, Unrealized Losses Gross | 0 | (2.4) |
Debt securities, Fair Value | 11.3 | 251.5 |
Supranational securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt securities, Amortized Cost | 149.8 | 50 |
Debt securities, Unrealized Gains Gross | 0 | 0 |
Debt securities, Unrealized Losses Gross | 0 | (0.6) |
Debt securities, Fair Value | 149.8 | 49.4 |
State & municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt securities, Amortized Cost | 1 | 10.9 |
Debt securities, Unrealized Gains Gross | 0 | 0 |
Debt securities, Unrealized Losses Gross | 0 | (0.7) |
Debt securities, Fair Value | 1 | 10.2 |
Corporate bonds - foreign | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt securities, Amortized Cost | 65.9 | 65.8 |
Debt securities, Unrealized Gains Gross | 1.2 | 0.1 |
Debt securities, Unrealized Losses Gross | 0 | 0 |
Debt securities, Fair Value | $ 67.1 | $ 65.9 |
Investment Securities (Schedu_4
Investment Securities (Schedule of Amortized Cost and Fair Value Maturities with Changes Recorded in Net Income) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Debt securities, Amortized Cost | $ 5,998.2 | $ 6,048.5 |
Total debt securities available-for-sale, Fair Value | $ 6,011.8 | 5,931.3 |
Weighted Average Yield | 2.66% | |
U.S. government/sponsored agency – Residential | ||
Schedule of Available-for-sale Securities [Line Items] | ||
After 5 through 10 years, Amortized Cost | $ 0.1 | |
Due after 10 years, Amortized Cost | 4,766.3 | |
Debt securities, Amortized Cost | 4,766.4 | 5,341.2 |
After 5 through 10 years, Fair value | 0.1 | |
Due after 10 years, Fair Value | 4,773.7 | |
Total debt securities available-for-sale, Fair Value | $ 4,773.8 | 5,225.2 |
After 5 through 10 years, Weighted Average Yield | 7.10% | |
Due after 10 years, Weighted Average Yield | 2.63% | |
Weighted Average Yield | 2.63% | |
U.S. government/sponsored agency – Commercial | ||
Schedule of Available-for-sale Securities [Line Items] | ||
After 1 through 5 years, Amortized Cost | $ 12.1 | |
After 5 through 10 years, Amortized Cost | 458.8 | |
Due after 10 years, Amortized Cost | 83.6 | |
Debt securities, Amortized Cost | 554.5 | 291.8 |
After 1 through 5 years, Fair Value | 12.3 | |
After 5 through 10 years, Fair value | 470.1 | |
Due after 10 years, Fair Value | 82.4 | |
Total debt securities available-for-sale, Fair Value | $ 564.8 | 294.6 |
After 1 through 5 years, Weighted Average Yield | 3.11% | |
After 5 through 10 years, Weighted Average Yield | 2.79% | |
Due after 10 years, Weighted Average Yield | 2.25% | |
Weighted Average Yield | 2.71% | |
U.S. government/sponsored agency obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
After 1 through 5 years, Amortized Cost | $ 24.9 | |
After 5 through 10 years, Amortized Cost | 154.2 | |
Due after 10 years, Amortized Cost | 270.3 | |
Debt securities, Amortized Cost | 449.4 | 34.9 |
After 1 through 5 years, Fair Value | 24.9 | |
After 5 through 10 years, Fair value | 152.6 | |
Due after 10 years, Fair Value | 266.5 | |
Total debt securities available-for-sale, Fair Value | $ 444 | 34.5 |
After 1 through 5 years, Weighted Average Yield | 2.43% | |
After 5 through 10 years, Weighted Average Yield | 2.70% | |
Due after 10 years, Weighted Average Yield | 2.82% | |
Weighted Average Yield | 2.75% | |
U.S. Treasury securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Due in 1 year or less, Amortized Cost | $ 9 | |
After 1 through 5 years, Amortized Cost | 0.2 | |
After 5 through 10 years, Amortized Cost | 2 | |
Debt securities, Amortized Cost | 11.2 | 253.9 |
Due in 1 year or less, Fair Value | 9 | |
After 1 through 5 years, Fair Value | 0.2 | |
After 5 through 10 years, Fair value | 2.1 | |
Total debt securities available-for-sale, Fair Value | $ 11.3 | 251.5 |
Due in 1 year or less, Weighted Average Yield | 1.99% | |
After 1 through 5 years, Weighted Average Yield | 1.63% | |
After 5 through 10 years, Weighted Average Yield | 2.60% | |
Weighted Average Yield | 2.09% | |
Supranational securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Due in 1 year or less, Amortized Cost | $ 149.8 | |
Debt securities, Amortized Cost | 149.8 | 50 |
Due in 1 year or less, Fair Value | 149.8 | |
Total debt securities available-for-sale, Fair Value | $ 149.8 | 49.4 |
Due in 1 year or less, Weighted Average Yield | 1.56% | |
Weighted Average Yield | 1.56% | |
State & municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Due after 10 years, Amortized Cost | $ 1 | |
Debt securities, Amortized Cost | 1 | 10.9 |
Due after 10 years, Fair Value | 1 | |
Total debt securities available-for-sale, Fair Value | $ 1 | 10.2 |
Due after 10 years, Weighted Average Yield | 2.26% | |
Weighted Average Yield | 2.26% | |
Corporate bonds - foreign | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Due in 1 year or less, Amortized Cost | $ 65.9 | |
Debt securities, Amortized Cost | 65.9 | 65.8 |
Due in 1 year or less, Fair Value | 67.1 | |
Total debt securities available-for-sale, Fair Value | $ 67.1 | $ 65.9 |
Due in 1 year or less, Weighted Average Yield | 6.09% | |
Weighted Average Yield | 6.09% |
Investment Securities (Schedu_5
Investment Securities (Schedule of AFS and HTM - Estimated Unrealized Losses) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Total securities available-for-sale, Less than 12 months, Debt securities, Fair Value | $ 2,078.1 | $ 932.2 |
Total securities available-for-sale, Less than 12 months, Debt securities, Gross Unrealized Loss | (11.7) | (10.2) |
Total securities available-for-sale, 12 months or greater, Debt securities, Fair Value | 878.9 | 3,924.8 |
Total securities available-for-sale, 12 months or greater, Debt securities, Gross Unrealized Loss | (12.2) | (117) |
U.S. government/sponsored agency – Residential | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total securities available-for-sale, Less than 12 months, Debt securities, Fair Value | 1,396.5 | 582.1 |
Total securities available-for-sale, Less than 12 months, Debt securities, Gross Unrealized Loss | (4.6) | (7.4) |
Total securities available-for-sale, 12 months or greater, Debt securities, Fair Value | 861.3 | 3,842.7 |
Total securities available-for-sale, 12 months or greater, Debt securities, Gross Unrealized Loss | (12.1) | (115.3) |
U.S. government/sponsored agency – Commercial | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total securities available-for-sale, Less than 12 months, Debt securities, Fair Value | 282.7 | 102.6 |
Total securities available-for-sale, Less than 12 months, Debt securities, Gross Unrealized Loss | (1.7) | (0.4) |
Total securities available-for-sale, 12 months or greater, Debt securities, Fair Value | 17.6 | 0 |
Total securities available-for-sale, 12 months or greater, Debt securities, Gross Unrealized Loss | (0.1) | 0 |
U.S. government/sponsored agency obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total securities available-for-sale, Less than 12 months, Debt securities, Fair Value | 398.9 | 0 |
Total securities available-for-sale, Less than 12 months, Debt securities, Gross Unrealized Loss | (5.4) | 0 |
Total securities available-for-sale, 12 months or greater, Debt securities, Fair Value | 0 | 24.6 |
Total securities available-for-sale, 12 months or greater, Debt securities, Gross Unrealized Loss | $ 0 | (0.4) |
U.S. Treasury securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total securities available-for-sale, Less than 12 months, Debt securities, Fair Value | 247.5 | |
Total securities available-for-sale, Less than 12 months, Debt securities, Gross Unrealized Loss | (2.4) | |
Total securities available-for-sale, 12 months or greater, Debt securities, Fair Value | 0 | |
Total securities available-for-sale, 12 months or greater, Debt securities, Gross Unrealized Loss | 0 | |
State & municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total securities available-for-sale, Less than 12 months, Debt securities, Fair Value | 0 | |
Total securities available-for-sale, Less than 12 months, Debt securities, Gross Unrealized Loss | 0 | |
Total securities available-for-sale, 12 months or greater, Debt securities, Fair Value | 8.1 | |
Total securities available-for-sale, 12 months or greater, Debt securities, Gross Unrealized Loss | (0.7) | |
Supranational securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total securities available-for-sale, Less than 12 months, Debt securities, Fair Value | 0 | |
Total securities available-for-sale, Less than 12 months, Debt securities, Gross Unrealized Loss | 0 | |
Total securities available-for-sale, 12 months or greater, Debt securities, Fair Value | 49.4 | |
Total securities available-for-sale, 12 months or greater, Debt securities, Gross Unrealized Loss | $ (0.6) |
Other Assets (Components of Oth
Other Assets (Components of Other Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||||
Tax credit investments and investments in unconsolidated subsidiaries | [1] | $ 365.6 | $ 313.9 | |
Right of use asset | 194.9 | $ 210 | ||
Fair value of derivative financial instruments | 190.7 | 119.9 | ||
Property, furniture and fixtures | 160 | 160 | ||
Counterparty receivables | 126.5 | 57 | ||
Intangible assets, net | 66 | 89.2 | ||
Current and deferred federal and state tax assets | 55.6 | 137 | ||
Other | [2] | 479.9 | 432.5 | |
Total other assets | $ 1,639.2 | $ 1,309.5 | ||
[1] | Included in this balance are LIHTC of $263.3 million and $217.7 million as of December 31, 2019 and December 31, 2018, respectively, that provide tax benefits to investors in the form of tax deductions from operating losses and tax credits. Refer to Note 1 – Business and Summary of Significant Accounting Policy for additional information. During 2019, 2018 and 2017, the Company recognized total tax benefits of $35.5 million, $34.2 million and $29.6 million, respectively, which included tax credits of $28.0 million, $27.0 million, and $22.6 million recorded in income taxes. During 2019, 2018 and 2017, the Company recorded $29.8 million, $29.1 million and $50.8 million, respectively, in tax provisions under the proportional amortization method. The Company is periodically required to provide additional financial support during the investment period. The Company’s liability for these unfunded commitments are included in Note 12 – Other Liabilities. See also Note 9 – Variable Interest Entities. | |||
[2] | “Other” includes executive retirement plan and deferred compensation, prepaid expenses, accrued interest and dividends, servicing advances, OREO and other miscellaneous assets. |
Other Assets (Components of O_2
Other Assets (Components of Other Assets) (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |||
Affordable housing investments | $ 263.3 | $ 217.7 | |
Tax benefits from affordable housing investments | 35.5 | 34.2 | $ 29.6 |
Tax credits from affordable housing investments | 28 | 27 | 22.6 |
Amortization expense on affordable housing investments | $ 29.8 | $ 29.1 | $ 50.8 |
Deposits (Schedule of Detail on
Deposits (Schedule of Detail on Deposit Types) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
Interest-bearing | $ 33,546.4 | $ 29,553.8 |
Non-interest bearing | 1,593.1 | 1,685.7 |
Total deposits | $ 35,139.5 | $ 31,239.5 |
Deposits (Schedule of Maturitie
Deposits (Schedule of Maturities of Time Deposits) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Time deposits, remaining contractual maturity: | |
Within one year | $ 7,671.8 |
One to two years | 2,028.9 |
Two to three years | 322.5 |
Three to four years | 348.5 |
Four to five years | 628.6 |
Over five years | 168 |
Total Time deposits | $ 11,168.3 |
Deposits (Schedule of Certifica
Deposits (Schedule of Certificates of Deposit $100 Thousand or More) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Time Deposits: | |
Three months or less | $ 1,658.5 |
After three months through six months | 1,528 |
After six months through twelve months | 2,655.7 |
After twelve months | 3,060.1 |
Total | $ 8,902.3 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
Aggregate time deposits, $250,000 or more | $ 4,705.6 | $ 5,647.2 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - Entity | Dec. 31, 2019 | Dec. 31, 2018 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Consolidated VIEs | 0 | 0 |
Variable Interest Entities (Ass
Variable Interest Entities (Assets and Liabilities in Unconsolidated VIEs) (Details) - Unconsolidated Variable Interest Entities (VIEs) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Partnership Investment | ||
Variable Interest Entity [Line Items] | ||
Total Assets | $ 361.1 | $ 306.9 |
Total Liabilities | 120.1 | 97.8 |
Maximum loss exposure | 361.1 | 306.9 |
Commitments to tax credit investments | Partnership Investment | ||
Variable Interest Entity [Line Items] | ||
Total Liabilities | 120.1 | 97.8 |
Debt Securities | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 5,338.6 | 5,519.9 |
Maximum loss exposure | 5,338.6 | 5,519.9 |
Debt Securities | Agency securities | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 5,338.6 | 5,519.9 |
Equity securities | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 84 | 73.5 |
Equity securities | Tax credit equity investments | ||
Variable Interest Entity [Line Items] | ||
Total Assets | $ 277.1 | $ 233.4 |
Borrowings (Schedule of Long-Te
Borrowings (Schedule of Long-Term Borrowings) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 6,473.4 | $ 8,118.8 |
CIT Group Inc. | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 3,916.3 | 3,808.4 |
Subsidiaries | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 2,557.1 | |
Senior | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 3,967.9 | 3,413 |
Senior | CIT Group Inc. | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 3,421.9 | |
Senior | Subsidiaries | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 546 | |
Subordinated notes | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 494.4 | 395.4 |
Subordinated notes | CIT Group Inc. | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 494.4 | |
FHLB advances | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 1,650 | 3,600 |
FHLB advances | Subsidiaries | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 1,650 | |
Other secured and structured financings | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 361.1 | $ 710.4 |
Other secured and structured financings | Subsidiaries | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 361.1 |
Borrowings (Schedule of Contrac
Borrowings (Schedule of Contractual Maturities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Contractual Maturities | $ 6,512.7 | |
Borrowings contractually due within twelve months | 14.3 | $ 0.9 |
2021 | 2,500 | |
2022 | 1,147 | |
2023 | 750 | |
Thereafter | 2,101.4 | |
Senior unsecured | ||
Debt Instrument [Line Items] | ||
Contractual Maturities | 3,998.4 | |
2021 | 500 | |
2022 | 1,147 | |
2023 | 750 | |
Thereafter | 1,601.4 | |
Subordinated unsecured notes | ||
Debt Instrument [Line Items] | ||
Contractual Maturities | 500 | |
Thereafter | 500 | |
FHLB advances | ||
Debt Instrument [Line Items] | ||
Contractual Maturities | 1,650 | |
2021 | 1,650 | |
Other secured and structured financings | ||
Debt Instrument [Line Items] | ||
Contractual Maturities | 364.3 | |
Borrowings contractually due within twelve months | 14.3 | |
2021 | $ 350 |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) | Nov. 30, 2019USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2019USD ($) | May 31, 2017 | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)subsidiary | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Apr. 05, 2019USD ($) | Apr. 04, 2017 | |
Debt Instrument [Line Items] | ||||||||||||||||||
Tier 1 Capital minimum ratio | [1] | 8.50% | 7.875% | 8.50% | 7.875% | |||||||||||||
Losses on extinguishment of debt | $ (100,000) | $ (100,000) | $ (200,000) | $ (100,000) | $ (15,700,000) | $ (3,500,000) | $ (19,300,000) | $ (100,000) | $ (500,000) | $ (38,600,000) | $ (220,000,000) | |||||||
Pledged assets | 11,300,000 | 11,300,000 | ||||||||||||||||
Collateral specifically identified and used to calculate available borrowings | 11,300,000 | 11,300,000 | ||||||||||||||||
FHLB released blanket lien covering book value of assets | $ 18,900,000 | |||||||||||||||||
Pledged assets, loans | 11,200,000 | 11,200,000 | ||||||||||||||||
Pledged assets, cash | 100,000 | 100,000 | ||||||||||||||||
FHLB advances, financing capacity | 6,400,000,000 | 6,400,000,000 | ||||||||||||||||
FHLB advances, unused and available | 4,700,000,000 | 4,700,000,000 | ||||||||||||||||
Long-term borrowings | 6,473,400,000 | 8,118,800,000 | 6,473,400,000 | 8,118,800,000 | ||||||||||||||
Federal Reserve System ("FRB") | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term borrowings | 0 | 0 | 0 | 0 | ||||||||||||||
Discontinued Operations | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Secured borrowings | 195,000,000 | 195,000,000 | ||||||||||||||||
Structured financings | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Losses on extinguishment of debt | (500,000) | (38,600,000) | $ (220,000,000) | |||||||||||||||
Subordinated notes | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term borrowings | $ 494,400,000 | 395,400,000 | $ 494,400,000 | 395,400,000 | ||||||||||||||
Other secured and structured financings | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Weighted average percentage rate | 3.03% | 3.03% | ||||||||||||||||
Long-term borrowings | $ 361,100,000 | 710,400,000 | $ 361,100,000 | 710,400,000 | ||||||||||||||
2.969% Senior Unsecured Fixed-to-Floating Rate Notes due 2025 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Face amount | $ 550,000,000 | $ 550,000,000 | ||||||||||||||||
Interest rate | 2.969% | 2.969% | ||||||||||||||||
Interest payable, description | semi-annually | |||||||||||||||||
Debt, maturity date | Sep. 27, 2025 | |||||||||||||||||
Senior Unsecured Note, 6.00% Maturing in 2036 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Face amount | $ 51,000,000 | $ 51,000,000 | ||||||||||||||||
Interest rate | 6.00% | 6.00% | ||||||||||||||||
Carrying value | $ 39,800,000 | $ 39,800,000 | ||||||||||||||||
4.125% Subordinated Unsecured Notes Due November 2029 | Subordinated notes | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Face amount | $ 100,000,000 | |||||||||||||||||
Interest rate | 4.125% | |||||||||||||||||
Debt, maturity date | Nov. 13, 2029 | |||||||||||||||||
6.125% Subordinated Unsecured Notes Due March 2028 | Subordinated notes | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Face amount | $ 400,000,000 | $ 400,000,000 | ||||||||||||||||
Interest rate | 6.125% | 6.125% | ||||||||||||||||
Debt, maturity date | Mar. 9, 2028 | |||||||||||||||||
Maximum | Other secured and structured financings | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Weighted average percentage rate | 3.58% | 3.58% | ||||||||||||||||
Minimum | Other secured and structured financings | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Weighted average percentage rate | 3.01% | 3.01% | ||||||||||||||||
Weighted Average | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
FHLB advances, weighted average percentage rate | 2.04% | 2.04% | ||||||||||||||||
LIBOR | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt, applicable margin (percentage) | 3.972% | |||||||||||||||||
Secured Overnight Financing Rate (“SOFR”) | 2.969% Senior Unsecured Fixed-to-Floating Rate Notes due 2025 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt, applicable margin (percentage) | 1.715% | |||||||||||||||||
Revolving Credit Facility | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Revolving credit facility, total commitment amount | $ 400,000,000 | $ 500,000,000 | $ 400,000,000 | $ 500,000,000 | ||||||||||||||
Tier 1 Capital minimum ratio | 9.00% | |||||||||||||||||
Revolving credit facility, domestic operating subsidiary guarantors | subsidiary | 3 | |||||||||||||||||
Revolving credit facility, extended maturity date | Mar. 1, 2021 | |||||||||||||||||
Revolving credit facility, minimum guarantor asset coverage ratio | 1.25 | 1.25 | ||||||||||||||||
Revolving Credit Facility | Maximum | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Revolving credit facility, minimum guarantor asset coverage ratio | 1.5 | 1.5 | ||||||||||||||||
Revolving Credit Facility | Minimum | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Revolving credit facility, minimum guarantor asset coverage ratio | 1 | 1 | ||||||||||||||||
Revolving Credit Facility | LIBOR | Maximum | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt, applicable margin (percentage) | 2.00% | |||||||||||||||||
Revolving Credit Facility | Base Rate | Maximum | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt, applicable margin (percentage) | 1.00% | |||||||||||||||||
Letters of Credit | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Revolving credit facility, total commitment amount | $ 100,000,000 | $ 100,000,000 | ||||||||||||||||
Outstanding borrowings | 41,000,000 | 41,000,000 | ||||||||||||||||
Revolving Credit Facility, Not Letter of Credit | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Revolving credit facility, total commitment amount | $ 300,000,000 | $ 300,000,000 | ||||||||||||||||
[1] | Required ratios under Basel III Rule include the fully phased-in capital conservation buffer of 2.5% as of December 31, 2019, and the partially phased-in capital conservation buffer of 1.875% |
Borrowings (Schedule of Senior
Borrowings (Schedule of Senior Unsecured Notes) (Details) - Senior Unsecured | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |
Par Value | $ 3,947,000,000 |
Weighted Average Rate (%) | 4.606% |
4.125% Senior Unsecured Notes Due March 2021 | |
Debt Instrument [Line Items] | |
Rate (%) | 4.125% |
Par Value | $ 500,000,000 |
5.000% Senior Unsecured Notes Due August 2022 | |
Debt Instrument [Line Items] | |
Rate (%) | 5.00% |
Par Value | $ 1,147,000,000 |
5.000% Senior Unsecured Notes Due August 2023 | |
Debt Instrument [Line Items] | |
Rate (%) | 5.00% |
Par Value | $ 750,000,000 |
4.750% Senior Unsecured Notes Due August 2024 | |
Debt Instrument [Line Items] | |
Rate (%) | 4.75% |
Par Value | $ 500,000,000 |
5.250% Senior Unsecured Notes Due March 2025 | |
Debt Instrument [Line Items] | |
Rate (%) | 5.25% |
Par Value | $ 500,000,000 |
2.969% Senior Unsecured Notes Due September 2025 | |
Debt Instrument [Line Items] | |
Rate (%) | 2.969% |
Par Value | $ 550,000,000 |
Borrowings (Schedule of FHLB Ad
Borrowings (Schedule of FHLB Advances with Pledged Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
FHLB Advances | $ 1,650 | $ 3,600 |
Pledged Assets | $ 6,987.6 | $ 6,712.4 |
Borrowings (Schedule of Structu
Borrowings (Schedule of Structured Financings and Pledged Assets) (Details) - Commercial Banking - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowing | $ 361.1 | $ 710.4 |
Pledged Assets | 2,205.9 | 2,851.5 |
Commercial Finance | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowing | 346.8 | 695.3 |
Pledged Assets | 2,188.5 | 2,833.7 |
Rail | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowing | 14.3 | 15.1 |
Pledged Assets | $ 17.4 | $ 17.8 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Fair and Notional Values of Derivative Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | $ 21,212 | $ 18,054.7 |
Asset Fair Value | 190.7 | 119.9 |
Liability Fair Value | (32) | (79.7) |
Less: Gross amounts offset in the Consolidated Balance Sheets, Asset Fair Value | 0 | 0 |
Less: Gross amounts offset in the Consolidated Balance Sheets, Liability Fair Value | 0 | 0 |
Less: Amounts subject to master netting agreements, Asset Fair Value | (11.8) | (49.2) |
Less: Amounts subject to master netting agreements, Liability Fair Value | 11.8 | 49.2 |
Cash collateral pledged (received) subject to master netting agreements, Asset Fair Value | (1.2) | (15.4) |
Cash collateral pledged (received) subject to master netting agreements Liability Fair Value | 14.3 | 0.3 |
Total net derivative fair values, Asset Fair Value | 177.7 | 55.3 |
Total net derivative fair values, Liability Fair Value | (5.9) | (30.2) |
Net amount presented in the Consolidated Balance Sheets, Derivative assets | 190.7 | 119.9 |
Net amount presented in the Consolidated Balance Sheets, Derivative liabilities | (32) | (79.7) |
Derivatives designated as hedging instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 1,926.3 | 896.1 |
Asset Fair Value | 0 | 28.8 |
Liability Fair Value | (10.6) | (0.3) |
Derivatives designated as hedging instruments | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 676.3 | 646.1 |
Asset Fair Value | 0 | 26.9 |
Liability Fair Value | (10.6) | (0.3) |
Derivatives designated as hedging instruments | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 1,250 | 250 |
Asset Fair Value | 0 | 1.9 |
Liability Fair Value | 0 | 0 |
Derivatives not designated as hedging instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 19,285.7 | 17,158.6 |
Asset Fair Value | 190.7 | 91.1 |
Liability Fair Value | (21.4) | (79.4) |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 982.9 | 832.5 |
Asset Fair Value | 13.7 | 3.1 |
Liability Fair Value | (6.1) | (19.7) |
Derivatives not designated as hedging instruments | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 17,588.1 | 15,889.5 |
Asset Fair Value | 176.9 | 87.8 |
Liability Fair Value | (14.5) | (59.7) |
Derivatives not designated as hedging instruments | Other contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 714.7 | 436.6 |
Asset Fair Value | 0.1 | 0.2 |
Liability Fair Value | $ (0.8) | $ 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Fair and Notional Values of Derivative Financial Instruments) ((Parenthetical) ) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Variable margin balances, assets | $ 16.2 |
Variable margin balances, liabilities | $ 142.8 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Impact of Fair Value Qualifying Hedges Recognized as Interest Expense) (Details) - Fair Value Hedges - Qualifying Hedges - Interest Expense - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Recognized on Derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net recognized on fair value hedges (No Ineffectiveness) | $ 3.6 | $ 0.3 |
Recognized on Hedged Item | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net recognized on fair value hedges (No Ineffectiveness) | $ (3.6) | $ (0.3) |
Derivative Financial Instrume_6
Derivative Financial Instruments (Impact of Non-Qualifying Hedges Recognized as Other Non-interest Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-qualifying hedges - income statement impact | $ 38.9 | $ 16.8 | $ (28.7) |
Non-Qualifying Hedges | Interest rate contracts | Other Non-Interest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-qualifying hedges - income statement impact | 11.7 | 17.1 | 8.6 |
Non-Qualifying Hedges | Foreign currency forward contracts | Other Non-Interest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-qualifying hedges - income statement impact | 25.5 | (13.5) | (34.2) |
Non-Qualifying Hedges | Other contracts | Other Non-Interest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-qualifying hedges - income statement impact | $ 1.7 | $ 13.2 | $ (3.1) |
Derivative Financial Instrume_7
Derivative Financial Instruments (Pre-tax Net Gains (Losses) Relating to Derivatives Designated as Net Investment Hedges) (Details) - Qualifying Hedges - Foreign currency forward contracts - Net Investment Hedges - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amounts reclassified from AOCI to income | $ 0 | $ 51.5 | $ 13.4 |
Amounts recorded in OCI | (27.3) | 72.2 | (74.7) |
Total change in AOCI for period | $ (27.3) | $ 20.7 | $ (88.1) |
Derivative Financial Instrume_8
Derivative Financial Instruments (Narrative) (Details) - USD ($) | Oct. 05, 2018 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | |||||
Notional amount of derivative | $ 18,054,700,000 | $ 21,212,000,000 | $ 18,054,700,000 | ||
Non-qualifying hedges - income statement impact | $ 38,900,000 | 16,800,000 | $ (28,700,000) | ||
Canadian Total Return Swap (TRS) | |||||
Derivative [Line Items] | |||||
Unutilized portion of facility accounted for as a derivative | 625,000,000 | ||||
Notional amount of derivative | 182,400,000 | ||||
Present value of remaining facility fee | 85,600,000 | $ 85,600,000 | |||
Decrease in liability associated with TRS transaction | 13,300,000 | ||||
Net pretax charges on termination | $ 69,500,000 | ||||
Non-qualifying hedges - income statement impact | $ 2,800,000 | ||||
Canadian Total Return Swap (TRS) | Goldman Sachs International | |||||
Derivative [Line Items] | |||||
Termination Date For Agreement | Nov. 2, 2018 |
Other Liabilities (Components O
Other Liabilities (Components Of Other Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | ||
Other Liabilities Disclosure [Abstract] | |||||
Accrued expenses and accounts payable | $ 565.4 | $ 561.5 | |||
Lease liabilities | 242.6 | [1] | $ 260 | ||
Current and deferred taxes payable | 167.2 | 106.9 | |||
Commitment to fund tax credit investments | 119.5 | 97.1 | |||
Accrued interest payable | 92.9 | 91.7 | |||
Fair value of derivative financial instruments | 32 | 79.7 | |||
Other liabilities | [2] | 485.1 | 324.2 | ||
Total other liabilities | $ 1,704.7 | $ 1,261.1 | |||
[1] | Reflects our obligation as lessee to make lease payments arising from our leases. See the discussion on the new lease accounting standard disclosed in Note 1 — Business and Summary of Significant Accounting Policies and Note 5 — Leases. | ||||
[2] | Other consists of liabilities for taxes other than income, equipment maintenance reserves, cash collateral deposits, contingent liabilities and other miscellaneous liabilities. |
Fair Value (Assets and Liabilit
Fair Value (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, Fair Value | $ 6,011.8 | $ 5,931.3 |
Securities carried at fair value with changes recorded in net income | 47.2 | 44.6 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, Fair Value | 11.3 | 251.5 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, Fair Value | 6,011.8 | 5,931.3 |
Securities carried at fair value with changes recorded in net income | 47.2 | 44.6 |
Total derivative assets at fair value — non-qualifying hedges | 190.7 | 91.1 |
Total Assets | 6,249.7 | 6,095.8 |
FDIC True-up liability | (68.8) | (66.9) |
Total Liabilities | (100.8) | (146.6) |
Recurring | Derivatives not designated as hedging instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative liabilities at fair value — non-qualifying hedges | (21.4) | (79.4) |
Recurring | Derivatives designated as hedging instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets at fair value — non-qualifying hedges | 28.8 | |
Total derivative liabilities at fair value — non-qualifying hedges | (10.6) | (0.3) |
Recurring | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets at fair value — non-qualifying hedges | 176.9 | 87.8 |
Total derivative liabilities at fair value — non-qualifying hedges | (14.5) | (59.7) |
Recurring | Interest rate contracts | Fair Value Hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets at fair value — non-qualifying hedges | 1.9 | |
Recurring | Other Derivative Non qualifying Hedges | Derivatives not designated as hedging instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets at fair value — non-qualifying hedges | 13.8 | 3.3 |
Total derivative liabilities at fair value — non-qualifying hedges | (6.9) | (19.7) |
Recurring | Foreign Currency Forward Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets at fair value — non-qualifying hedges | 26.9 | |
Total derivative liabilities at fair value — non-qualifying hedges | (10.6) | (0.3) |
Recurring | Residential MBS – U.S. government/sponsored agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, Fair Value | 4,773.8 | 5,225.2 |
Recurring | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, Fair Value | 11.3 | 251.5 |
Recurring | Other Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, Fair Value | 1,226.7 | 454.6 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, Fair Value | 4.7 | 53.9 |
Securities carried at fair value with changes recorded in net income | 0.1 | 0.1 |
Total derivative assets at fair value — non-qualifying hedges | 0 | |
Total Assets | 4.8 | 54 |
FDIC True-up liability | 0 | |
Total Liabilities | 0 | |
Recurring | Level 1 | Derivatives not designated as hedging instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative liabilities at fair value — non-qualifying hedges | 0 | |
Recurring | Level 1 | Derivatives designated as hedging instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets at fair value — non-qualifying hedges | 0 | |
Total derivative liabilities at fair value — non-qualifying hedges | 0 | |
Recurring | Level 1 | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets at fair value — non-qualifying hedges | 0 | |
Total derivative liabilities at fair value — non-qualifying hedges | 0 | |
Recurring | Level 1 | Interest rate contracts | Fair Value Hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets at fair value — non-qualifying hedges | 0 | |
Recurring | Level 1 | Other Derivative Non qualifying Hedges | Derivatives not designated as hedging instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets at fair value — non-qualifying hedges | 0 | |
Total derivative liabilities at fair value — non-qualifying hedges | 0 | |
Recurring | Level 1 | Foreign Currency Forward Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets at fair value — non-qualifying hedges | 0 | |
Total derivative liabilities at fair value — non-qualifying hedges | 0 | |
Recurring | Level 1 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, Fair Value | 4.7 | 53.9 |
Recurring | Level 1 | Other Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, Fair Value | 0 | |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, Fair Value | 5,940 | 5,811.5 |
Securities carried at fair value with changes recorded in net income | 47.1 | 44.5 |
Total derivative assets at fair value — non-qualifying hedges | 190.4 | 90.7 |
Total Assets | 6,177.5 | 5,975.5 |
FDIC True-up liability | 0 | |
Total Liabilities | (31.2) | (79.7) |
Recurring | Level 2 | Derivatives not designated as hedging instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative liabilities at fair value — non-qualifying hedges | (20.6) | (79.4) |
Recurring | Level 2 | Derivatives designated as hedging instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets at fair value — non-qualifying hedges | 28.8 | |
Total derivative liabilities at fair value — non-qualifying hedges | (10.6) | (0.3) |
Recurring | Level 2 | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets at fair value — non-qualifying hedges | 176.7 | 87.6 |
Total derivative liabilities at fair value — non-qualifying hedges | (14.5) | (59.7) |
Recurring | Level 2 | Interest rate contracts | Fair Value Hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets at fair value — non-qualifying hedges | 1.9 | |
Recurring | Level 2 | Other Derivative Non qualifying Hedges | Derivatives not designated as hedging instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets at fair value — non-qualifying hedges | 13.7 | 3.1 |
Total derivative liabilities at fair value — non-qualifying hedges | (6.1) | (19.7) |
Recurring | Level 2 | Foreign Currency Forward Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets at fair value — non-qualifying hedges | 26.9 | |
Total derivative liabilities at fair value — non-qualifying hedges | (10.6) | (0.3) |
Recurring | Level 2 | Residential MBS – U.S. government/sponsored agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, Fair Value | 4,773.8 | 5,225.2 |
Recurring | Level 2 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, Fair Value | 6.6 | 197.6 |
Recurring | Level 2 | Other Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, Fair Value | 1,159.6 | 388.7 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, Fair Value | 67.1 | 65.9 |
Securities carried at fair value with changes recorded in net income | 0 | |
Total derivative assets at fair value — non-qualifying hedges | 0.3 | 0.4 |
Total Assets | 67.4 | 66.3 |
FDIC True-up liability | (68.8) | (66.9) |
Total Liabilities | (69.6) | (66.9) |
Recurring | Level 3 | Derivatives not designated as hedging instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative liabilities at fair value — non-qualifying hedges | (0.8) | 0 |
Recurring | Level 3 | Derivatives designated as hedging instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets at fair value — non-qualifying hedges | 0 | |
Total derivative liabilities at fair value — non-qualifying hedges | 0 | |
Recurring | Level 3 | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets at fair value — non-qualifying hedges | 0.2 | 0.2 |
Total derivative liabilities at fair value — non-qualifying hedges | 0 | |
Recurring | Level 3 | Interest rate contracts | Fair Value Hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets at fair value — non-qualifying hedges | 0 | |
Recurring | Level 3 | Other Derivative Non qualifying Hedges | Derivatives not designated as hedging instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets at fair value — non-qualifying hedges | 0.1 | 0.2 |
Total derivative liabilities at fair value — non-qualifying hedges | (0.8) | 0 |
Recurring | Level 3 | Foreign Currency Forward Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets at fair value — non-qualifying hedges | 0 | |
Total derivative liabilities at fair value — non-qualifying hedges | 0 | |
Recurring | Level 3 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, Fair Value | 0 | |
Recurring | Level 3 | Other Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, Fair Value | $ 67.1 | $ 65.9 |
Fair Value (Quantitative Inform
Fair Value (Quantitative Information about Level 3 Fair Value Measurements-Recurring) (Details) $ in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value - assets | $ 6,249.7 | $ 6,095.8 |
Estimated fair value liabilities | (100.8) | (146.6) |
Level 3 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value - assets | 67.4 | 66.3 |
Estimated fair value liabilities | (69.6) | (66.9) |
Level 3 | Derivative Assets — Non-Qualifying | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value - assets | $ 0.3 | $ 0.4 |
Level 3 | FDIC True-up Liability | Discount Rate | Discounted Cash Flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability measurement input | 2.2 | 4.5 |
Level 3 | FDIC True-up Liability | Weighted Average | Discount Rate | Discounted Cash Flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability measurement input | 2.2 | 4.5 |
Level 3 | FDIC True-up Liability | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value liabilities | $ (68.8) | $ (66.9) |
Level 3 | Derivative Liabilities — Non-Qualifying | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value liabilities | $ (0.8) | |
Level 3 | Debt Securities — AFS | Minimum | Discount Rate | Discounted Cash Flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities — AFS measurement input | 6 | 6 |
Level 3 | Debt Securities — AFS | Maximum | Discount Rate | Discounted Cash Flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities — AFS measurement input | 6.2 | 6.2 |
Level 3 | Debt Securities — AFS | Weighted Average | Discount Rate | Discounted Cash Flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities — AFS measurement input | 6 | 6.1 |
Level 3 | Debt Securities — AFS | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value - assets | $ 67.1 | $ 65.9 |
Level 3 | Derivative Assets — Non-Qualifying | Minimum | Borrower Rate | Internal Valuation Model | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets — non qualifying, measurement input | 2.8 | 3.3 |
Level 3 | Derivative Assets — Non-Qualifying | Maximum | Borrower Rate | Internal Valuation Model | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets — non qualifying, measurement input | 5 | 5.7 |
Level 3 | Derivative Assets — Non-Qualifying | Weighted Average | Borrower Rate | Internal Valuation Model | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets — non qualifying, measurement input | 3.6 | 4.4 |
Fair Value (Changes in Estimate
Fair Value (Changes in Estimated Fair Value for Financial Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Securities — AFS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 65.9 | $ 385.8 |
Included in earnings | 0.1 | 16.8 |
Included in comprehensive income | 1.1 | (22.7) |
Sales, paydowns, and adjustments | (314) | |
Ending Balance | 67.1 | 65.9 |
Securities Carried at Fair Value with Changes Recorded in Net Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 0 | 0.4 |
Included in earnings | 0 | 0 |
Included in comprehensive income | 0 | 0 |
Sales, paydowns, and adjustments | (0.4) | |
Ending Balance | 0 | 0 |
Derivative Assets — Non-Qualifying | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 0.4 | 0.1 |
Included in earnings | (0.1) | 0.3 |
Included in comprehensive income | 0 | 0 |
Sales, paydowns, and adjustments | 0 | |
Ending Balance | 0.3 | 0.4 |
Derivative Liabilities — Non-Qualifying | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 0 | (14.1) |
Included in earnings | (0.8) | 14.1 |
Included in comprehensive income | 0 | 0 |
Sales, paydowns, and adjustments | 0 | |
Ending Balance | (0.8) | 0 |
FDIC True-up Liability | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | (66.9) | (65.1) |
Included in earnings | (1.9) | (1.8) |
Included in comprehensive income | 0 | 0 |
Sales, paydowns, and adjustments | 0 | |
Ending Balance | (68.8) | (66.9) |
Consideration Holdback Liability | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 0 | (46) |
Included in earnings | 0 | 8 |
Included in comprehensive income | 0 | 0 |
Sales, paydowns, and adjustments | 38 | |
Ending Balance | $ 0 | $ 0 |
Fair Value (Carrying Value of A
Fair Value (Carrying Value of Assets Measured at Fair Value on a Non-Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | $ 29.6 | $ 68.2 |
Carrying Value | Non-Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | 22.6 | 30.4 |
Impaired loans | 244.8 | 111.5 |
Tax credit investments | 82 | |
Total Assets | 349.4 | 141.9 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | 29.7 | 68.3 |
Fair Value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | 0 | 0 |
Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | 7.5 | 5 |
Fair Value | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | 22.2 | 63.3 |
Fair Value | Non-Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | 0 | 0 |
Impaired loans | 0 | 0 |
Tax credit investments | 0 | |
Total Assets | 0 | 0 |
Fair Value | Non-Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | 1.9 | 1.4 |
Impaired loans | 0 | 0 |
Tax credit investments | 0 | |
Total Assets | 1.9 | 1.4 |
Fair Value | Non-Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | 20.7 | 29 |
Impaired loans | 244.8 | 111.5 |
Tax credit investments | 82 | |
Total Assets | 347.5 | 140.5 |
Total Gains (Losses) | Non-Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | 2.2 | 14.2 |
Impaired loans | (73.5) | (42.6) |
Tax credit investments | (5.1) | |
Total Assets | $ (76.4) | $ (28.4) |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Disclosure [Line Items] | |||
Impairment loss on tax credit investments | $ 5.1 | ||
Borrower rate, max effective period | 90 days | ||
Level 2 | |||
Fair Value Disclosure [Line Items] | |||
Unsecured borrowings | 4,500 | $ 4,500 | $ 3,800 |
Face amount | 1,700 | 1,700 | 3,600 |
Level 3 | |||
Fair Value Disclosure [Line Items] | |||
Face amount | $ 400 | $ 400 | $ 700 |
Fair Value (Carrying and Estima
Fair Value (Carrying and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financial Assets | |||
Cash and interest bearing deposits | $ 1,695.5 | $ 1,596.8 | $ 1,440.1 |
Securities purchased under agreement to resell | 950 | 400 | |
Financial Liabilities | |||
Credit balances of factoring clients | (1,176.2) | (1,674.4) | $ (1,468.6) |
Carrying Value | |||
Financial Assets | |||
Cash and interest bearing deposits | 2,685.6 | 1,795.6 | |
Assets held for sale (excluding leases) | 29.6 | 68.2 | |
Loans (excluding leases) | 28,744.5 | 28,306 | |
Securities purchased under agreement to resell | 950 | 400 | |
Investment securities | 217.8 | 257.9 | |
Other assets subject to fair value disclosure | 418.2 | 419.7 | |
Financial Liabilities | |||
Deposits | (35,156.2) | (31,255.8) | |
Borrowings | (6,549.6) | (8,194.2) | |
Credit balances of factoring clients | (1,176.2) | (1,674.4) | |
Other liabilities subject to fair value disclosure | (831.6) | (657) | |
Estimated Fair Value | |||
Financial Assets | |||
Cash and interest bearing deposits | 2,685.6 | 1,795.6 | |
Assets held for sale (excluding leases) | 29.7 | 68.3 | |
Loans (excluding leases) | 28,798.8 | 27,876.8 | |
Securities purchased under agreement to resell | 950 | 400 | |
Investment securities | 217.8 | 257.9 | |
Other assets subject to fair value disclosure | 418.2 | 423.9 | |
Financial Liabilities | |||
Deposits | (35,263.8) | (31,245) | |
Borrowings | (6,897.2) | (8,184.5) | |
Credit balances of factoring clients | (1,176.2) | (1,674.4) | |
Other liabilities subject to fair value disclosure | (831.6) | (657) | |
Estimated Fair Value | Level 1 | |||
Financial Assets | |||
Cash and interest bearing deposits | 2,685.6 | 1,795.6 | |
Assets held for sale (excluding leases) | 0 | 0 | |
Loans (excluding leases) | 0 | 0 | |
Securities purchased under agreement to resell | 0 | 0 | |
Investment securities | 0 | 0 | |
Other assets subject to fair value disclosure | 0 | 0 | |
Financial Liabilities | |||
Deposits | 0 | 0 | |
Borrowings | 0 | 0 | |
Credit balances of factoring clients | 0 | 0 | |
Other liabilities subject to fair value disclosure | 0 | 0 | |
Estimated Fair Value | Level 2 | |||
Financial Assets | |||
Cash and interest bearing deposits | 0 | 0 | |
Assets held for sale (excluding leases) | 7.5 | 5 | |
Loans (excluding leases) | 1,114.5 | 983.4 | |
Securities purchased under agreement to resell | 950 | 400 | |
Investment securities | 0 | 0 | |
Other assets subject to fair value disclosure | 0 | 0 | |
Financial Liabilities | |||
Deposits | 0 | 0 | |
Borrowings | (6,532) | (7,463) | |
Credit balances of factoring clients | 0 | 0 | |
Other liabilities subject to fair value disclosure | 0 | 0 | |
Estimated Fair Value | Level 3 | |||
Financial Assets | |||
Cash and interest bearing deposits | 0 | 0 | |
Assets held for sale (excluding leases) | 22.2 | 63.3 | |
Loans (excluding leases) | 27,684.3 | 26,893.4 | |
Securities purchased under agreement to resell | 0 | 0 | |
Investment securities | 217.8 | 257.9 | |
Other assets subject to fair value disclosure | 418.2 | 423.9 | |
Financial Liabilities | |||
Deposits | (35,263.8) | (31,245) | |
Borrowings | (365.2) | (721.5) | |
Credit balances of factoring clients | (1,176.2) | (1,674.4) | |
Other liabilities subject to fair value disclosure | $ (831.6) | $ (657) |
Stockholder's Equity (Schedule
Stockholder's Equity (Schedule of Common Stock Activity) (Details) | 12 Months Ended |
Dec. 31, 2019shares | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Beginning balance, outstanding (in shares) | 100,919,707 |
Beginning balance, issued (in shares) | 161,073,078 |
Restricted stock issued (in shares) | 1,051,131 |
Repurchase of common stock (in shares) | (6,901,574) |
Shares held to cover taxes on vesting restricted shares and other (in shares) | (390,778) |
Employee stock purchase plan participation (in shares) | 64,078 |
Ending balance, outstanding (in shares) | 94,742,564 |
Ending balance, issued (in shares) | 162,188,287 |
Issued | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Beginning balance, issued (in shares) | 161,073,078 |
Restricted stock issued (in shares) | 1,051,131 |
Employee stock purchase plan participation (in shares) | 64,078 |
Ending balance, issued (in shares) | 162,188,287 |
Less Treasury | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Beginning balance, outstanding (in shares) | (60,153,371) |
Repurchase of common stock (in shares) | (6,901,574) |
Shares held to cover taxes on vesting restricted shares and other (in shares) | (390,778) |
Ending balance, outstanding (in shares) | (67,445,723) |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 13, 2019 | May 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Equity, Class of Treasury Stock [Line Items] | |||||
Retirement of common stock | 48,000,000 | ||||
Preferred stock issued value | $ 525 | $ 325 | |||
Perpetual preferred stock dividend rate | 5.625% | 5.80% | |||
Preferred stock, redemption price per share | $ 25 | $ 1,000 | |||
Net proceeds from preferred stock issued | $ 195.1 | $ 318 | 195.1 | $ 318 | |
Dividends | 146.7 | 115.9 | 113.7 | ||
LIBOR | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Description of variable rate basis | three-month LIBOR | ||||
Basis spread on variable rate | 3.972% | ||||
Series A Preferred Stock | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Preferred stock issued value | $ 200 | $ 325 | |||
Treasury Stock, at Cost | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Reduction in treasury stock | (2,343.6) | ||||
Common Stock | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Reduction in treasury stock | 0.5 | ||||
Paid-in Capital | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Reduction in treasury stock | 2,029.1 | ||||
Retained Earnings | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Reduction in treasury stock | 314 | ||||
Dividends | 146.7 | $ 115.9 | $ 113.7 | ||
Open Market Repurchases | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Common shares repurchases | $ 340.9 | ||||
Number of shares repurchased (in shares) | 6,901,574 |
Stockholders' Equity (Component
Stockholders' Equity (Components of Accumulated Other Comprehensive Income (Loss) ("AOCI")) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Gross Unrealized | $ (39.6) | $ (198.7) |
Income Taxes | (12.5) | 20.4 |
Net Unrealized | (52.1) | (178.3) |
Foreign currency translation adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Gross Unrealized | (1.9) | (6.7) |
Income Taxes | (7.2) | (14.2) |
Net Unrealized | (9.1) | (20.9) |
Changes in benefit plans net (loss) gains and prior service (cost)/credit | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Gross Unrealized | (51.3) | (74.9) |
Income Taxes | (1.3) | 4.7 |
Net Unrealized | (52.6) | (70.2) |
Unrealized net gains (loss) on securities AFS | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Gross Unrealized | 13.6 | (117.1) |
Income Taxes | (4) | 29.9 |
Net Unrealized | $ 9.6 | $ (87.2) |
Stockholders' Equity (Changes i
Stockholders' Equity (Changes in Accumulated Other Comprehensive Income (Loss) by Component) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ 5,946.6 | $ 7,320 | $ 10,003.1 |
Adoption of ASUs 2016-01 and 2018-02 | 0.2 | ||
Net current period AOCI | 126.2 | (91.3) | 53.6 |
Ending balance | 6,339 | 5,946.6 | 7,320 |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (20.9) | (8) | |
Adoption of ASUs 2016-01 and 2018-02 | 3.3 | ||
AOCI activity before reclassifications | 11.8 | (12.2) | |
Amounts reclassified from AOCI | (4) | ||
Net current period AOCI | 11.8 | (16.2) | |
Ending balance | (9.1) | (20.9) | (8) |
Changes in benefit plan net gain (loss) and prior service (cost)/credit | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (70.2) | (54.5) | |
Adoption of ASUs 2016-01 and 2018-02 | 0.3 | ||
AOCI activity before reclassifications | 17.6 | (16.5) | |
Amounts reclassified from AOCI | 0.5 | ||
Net current period AOCI | 17.6 | (16) | |
Ending balance | (52.6) | (70.2) | (54.5) |
Unrealized net gains (losses) on AFS securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (87.2) | (24) | |
Adoption of ASUs 2016-01 and 2018-02 | (4.1) | ||
AOCI activity before reclassifications | 100.4 | (45) | |
Amounts reclassified from AOCI | (3.6) | (14.1) | |
Net current period AOCI | 96.8 | (59.1) | |
Ending balance | 9.6 | (87.2) | (24) |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (178.3) | (86.5) | (140.1) |
Adoption of ASUs 2016-01 and 2018-02 | (0.5) | ||
AOCI activity before reclassifications | 129.8 | (73.7) | |
Amounts reclassified from AOCI | (3.6) | (17.6) | |
Net current period AOCI | 126.2 | (91.3) | 53.6 |
Ending balance | $ (52.1) | $ (178.3) | $ (86.5) |
Stockholders' Equity (Reclassif
Stockholders' Equity (Reclassifications out of AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Gross Amount | $ 159.1 | $ (107.5) | |
Tax | (32.9) | 16.2 | |
Net current period AOCI | 126.2 | (91.3) | $ 53.6 |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Gross Amount | 4.8 | (7.5) | |
Tax | 7 | (8.7) | |
Net current period AOCI | 11.8 | (16.2) | |
Foreign currency translation adjustments | Reclassifications Out of AOCI | Other Non-Interest Income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Gross Amount | (10.7) | ||
Tax | 6.7 | ||
Net current period AOCI | (4) | ||
Foreign currency translation adjustments | AOCI activity before reclassification | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Gross Amount | 4.8 | 3.2 | |
Tax | 7 | (15.4) | |
Net current period AOCI | 11.8 | (12.2) | |
Changes in benefit plan net gain (loss) and prior service (cost)/credit | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Gross Amount | 23.6 | (21.3) | |
Tax | (6) | 5.3 | |
Net current period AOCI | 17.6 | (16) | |
Changes in benefit plan net gain (loss) and prior service (cost)/credit | Reclassifications Out of AOCI | Operating expenses | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Gross Amount | 0.6 | ||
Tax | (0.1) | ||
Net current period AOCI | 0.5 | ||
Changes in benefit plan net gain (loss) and prior service (cost)/credit | AOCI activity before reclassification | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Gross Amount | 23.6 | (21.9) | |
Tax | (6) | 5.4 | |
Net current period AOCI | 17.6 | (16.5) | |
Unrealized net gains (losses) on AFS securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Gross Amount | 130.7 | (78.7) | |
Tax | (33.9) | 19.6 | |
Net current period AOCI | 96.8 | (59.1) | |
Unrealized net gains (losses) on AFS securities | Reclassifications Out of AOCI | Other Non-Interest Income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Gross Amount | (4.8) | (19.2) | |
Tax | 1.2 | 5.1 | |
Net current period AOCI | (3.6) | (14.1) | |
Unrealized net gains (losses) on AFS securities | AOCI activity before reclassification | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Gross Amount | 135.5 | (59.5) | |
Tax | (35.1) | 14.5 | |
Net current period AOCI | $ 100.4 | $ (45) |
Regulatory Capital (Tier 1 Capi
Regulatory Capital (Tier 1 Capital And Total Capital Components) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Common Equity Tier 1 Capital | $ 5,444.4 | $ 5,278.2 | |
Tier 1 Capital | 5,969.3 | 5,592.7 | |
Total Capital | 6,983.3 | 6,519.3 | |
Risk-Weighted Assets | $ 45,262 | $ 44,051.7 | |
Common Equity Tier 1 Capital Ratio | |||
Actual | 12.00% | 12.00% | |
Effective minimum ratios under Basel III guidelines | [1] | 7.00% | 6.375% |
Tier 1 Capital Ratio: | |||
Actual | 13.20% | 12.70% | |
Effective minimum ratios under Basel III guidelines | [1] | 8.50% | 7.875% |
Total Capital Ratio: | |||
Actual | 15.40% | 14.80% | |
Effective minimum ratios under Basel III guidelines | [1] | 10.50% | 9.875% |
Tier 1 Leverage Ratio: | |||
Actual | 11.90% | 11.60% | |
Required minimum ratio for capital adequacy purposes | 4.00% | 4.00% | |
Capital conservation buffer rate | 2.50% | 1.875% | |
CIT Bank, N.A. | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Common Equity Tier 1 Capital | $ 4,879.6 | $ 4,783.6 | |
Tier 1 Capital | 4,879.6 | 4,783.6 | |
Total Capital | 5,644.3 | 5,230.4 | |
Risk-Weighted Assets | $ 37,150.5 | $ 35,697.6 | |
Common Equity Tier 1 Capital Ratio | |||
Actual | 13.10% | 13.40% | |
Effective minimum ratios under Basel III guidelines | [1] | 7.00% | 6.375% |
Tier 1 Capital Ratio: | |||
Actual | 13.10% | 13.40% | |
Effective minimum ratios under Basel III guidelines | [1] | 8.50% | 7.875% |
Total Capital Ratio: | |||
Actual | 15.20% | 14.70% | |
Effective minimum ratios under Basel III guidelines | [1] | 10.50% | 9.875% |
Tier 1 Leverage Ratio: | |||
Actual | 11.00% | 11.60% | |
Required minimum ratio for capital adequacy purposes | 4.00% | 4.00% | |
Capital conservation buffer rate | 2.50% | 1.875% | |
[1] | Required ratios under Basel III Rule include the fully phased-in capital conservation buffer of 2.5% as of December 31, 2019, and the partially phased-in capital conservation buffer of 1.875% |
Earnings Per Share (Computation
Earnings Per Share (Computation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income from continuing operations | $ 529.4 | $ 472.1 | $ 259.4 | |||||||||
Preferred stock dividends | 18.9 | 18.9 | 9.8 | |||||||||
Income from continuing operations available to common shareholders | $ 121.1 | $ 142.8 | $ 127.4 | $ 119.2 | $ 82.2 | $ 129.4 | $ 137.9 | $ 103.7 | 510.5 | 453.2 | 249.6 | |
Income (loss) from discontinued operations | 0.5 | (25) | 208.8 | |||||||||
Net income available to common shareholders | $ 121.1 | $ 142.8 | $ 128.2 | $ 118.9 | $ 82.3 | $ 131.5 | $ 117.4 | $ 97 | $ 511 | $ 428.2 | $ 458.4 | |
Weighted Average Common Shares Outstanding | ||||||||||||
Basic shares outstanding (in shares) | 96,503 | 117,653 | 162,290 | |||||||||
Stock-based awards (in shares) | [1] | 418 | 1,124 | 1,660 | ||||||||
Diluted shares outstanding (in shares) | 96,921 | 118,777 | 163,950 | |||||||||
Basic Earnings Per Common Share Data | ||||||||||||
Income from continuing operations | $ 5.29 | $ 3.85 | $ 1.54 | |||||||||
Income (loss) from discontinued operations | 0.01 | (0.21) | 1.28 | |||||||||
Basic income per share | 5.30 | 3.64 | 2.82 | |||||||||
Diluted Earnings Per Common Share Data | ||||||||||||
Income from continuing operations | 5.27 | 3.82 | 1.52 | |||||||||
Income (loss) from discontinued operations | (0.21) | 1.28 | ||||||||||
Diluted income per share | $ 1.27 | $ 1.50 | $ 1.33 | $ 1.18 | $ 0.78 | $ 1.15 | $ 0.94 | $ 0.74 | $ 5.27 | $ 3.61 | $ 2.80 | |
Restricted Shares, Performance Shares, and Out-Of-The Money Options | ||||||||||||
Diluted Earnings Per Common Share Data | ||||||||||||
Weighted average shares excluded from diluted earnings per share (in shares) | 800 | 500 | 1,300 | |||||||||
[1] | Represents the incremental shares from non-qualified restricted stock awards, performance shares, and in-the-money stock options. Weighted average restricted shares, performance shares and options that were either out-of-the money or did not meet performance targets and therefore excluded from diluted earnings per share totaled 0.8 million, 0.5 million, and 1.3 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Non-Interest Income (Schedule O
Non-Interest Income (Schedule Of Non-Interest Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Rental income on operating leases | $ 215.3 | $ 211.7 | $ 213 | $ 217.7 | $ 229.8 | $ 264.3 | $ 261.3 | $ 253.6 | $ 857.7 | $ 1,009 | $ 1,007.4 |
Other non-interest income | 111.3 | 101 | 106.1 | 96.8 | 47.5 | 86.2 | 135.4 | 104.7 | 415.2 | 373.8 | 364.2 |
Total non-interest income | 1,272.9 | 1,382.8 | 1,371.6 | ||||||||
Other non-interest income | |||||||||||
Gains on leasing equipment, net of impairments | 71.1 | 59.5 | 43.1 | ||||||||
BOLI income | 29.1 | 25.5 | 7.6 | ||||||||
Property tax income | 22.2 | ||||||||||
Gains on investment securities, net of impairments | 6.2 | 15.3 | 28.9 | ||||||||
Other revenues | 71.1 | 67.6 | 68.1 | ||||||||
Total other non-interest income | $ 111.3 | $ 101 | $ 106.1 | $ 96.8 | $ 47.5 | $ 86.2 | $ 135.4 | $ 104.7 | 415.2 | 373.8 | 364.2 |
Fee Revenues | |||||||||||
Other non-interest income | |||||||||||
Revenues | 116.7 | 103.5 | 113.6 | ||||||||
Factoring Commissions | |||||||||||
Other non-interest income | |||||||||||
Revenues | $ 98.8 | $ 102.4 | $ 102.9 |
Non-Interest Expenses (Schedule
Non-Interest Expenses (Schedule Of Non-Interest Expenses) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Noninterest Expense [Abstract] | |||||||||||
Depreciation on operating lease equipment | $ 76,400,000 | $ 76,000,000 | $ 76,800,000 | $ 79,400,000 | $ 79,500,000 | $ 78,000,000 | $ 77,200,000 | $ 76,400,000 | $ 308,600,000 | $ 311,100,000 | $ 296,300,000 |
Maintenance and other operating lease expenses | 40,700,000 | 41,900,000 | 48,300,000 | 49,800,000 | 52,900,000 | 56,600,000 | 63,500,000 | 57,400,000 | 180,700,000 | 230,400,000 | 222,900,000 |
Operating expenses | 258,500,000 | 310,800,000 | 267,800,000 | 276,100,000 | 257,900,000 | 263,300,000 | 267,500,000 | 281,300,000 | 1,113,200,000 | 1,070,000,000 | 1,188,500,000 |
Goodwill impairment | 255,600,000 | ||||||||||
Loss on debt extinguishments and deposit redemptions | 100,000 | 100,000 | 200,000 | 100,000 | 15,700,000 | 3,500,000 | 19,300,000 | 100,000 | 500,000 | 38,600,000 | 220,000,000 |
Total non-interest expenses | 1,603,000,000 | 1,650,100,000 | 2,183,300,000 | ||||||||
Operating expenses | |||||||||||
Compensation and benefits | 566,800,000 | 558,400,000 | 566,300,000 | ||||||||
Technology | 135,800,000 | 131,500,000 | 127,900,000 | ||||||||
Net occupancy expense | 91,300,000 | 65,600,000 | 67,800,000 | ||||||||
Professional fees | 75,900,000 | 82,700,000 | 132,300,000 | ||||||||
Insurance | 51,100,000 | 68,300,000 | 84,700,000 | ||||||||
Advertising and marketing | 40,400,000 | 47,600,000 | 42,200,000 | ||||||||
Property tax expense | 24,100,000 | ||||||||||
Intangible asset amortization | 23,200,000 | 23,900,000 | 24,700,000 | ||||||||
Restructuring costs | 15,100,000 | 0 | 53,000,000 | ||||||||
Other expenses | 89,500,000 | 92,000,000 | 89,600,000 | ||||||||
Total operating expenses | $ 258,500,000 | $ 310,800,000 | $ 267,800,000 | $ 276,100,000 | $ 257,900,000 | $ 263,300,000 | $ 267,500,000 | $ 281,300,000 | $ 1,113,200,000 | $ 1,070,000,000 | $ 1,188,500,000 |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income Before (Benefit)/Provision for Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Examination [Line Items] | |||
Income from continuing operations before provision / (benefit) for income taxes | $ 623.9 | $ 637 | $ 191.6 |
U.S. operations | |||
Income Tax Examination [Line Items] | |||
Income from continuing operations before provision / (benefit) for income taxes | 609.2 | 471.4 | 251.9 |
Non-U.S. operations | |||
Income Tax Examination [Line Items] | |||
Income from continuing operations before provision / (benefit) for income taxes | $ 14.7 | $ 165.6 | $ (60.3) |
Income Taxes (Schedule of Provi
Income Taxes (Schedule of Provision (Benefit) for Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Current U.S. federal income tax provision / (benefit) | $ (10.9) | $ 29.5 | $ 73.7 | ||||||||
Deferred U.S. federal income tax provision | 118.1 | 56.1 | 24.8 | ||||||||
Total federal income tax provision | 107.2 | 85.6 | 98.5 | ||||||||
Current state and local income tax provision / (benefit) | (2.1) | 8.4 | (0.7) | ||||||||
Deferred state and local income tax provision / (benefit) | 51.4 | 24.8 | (27.8) | ||||||||
Total state and local income tax provision / (benefit) | 49.3 | 33.2 | (28.5) | ||||||||
Total non-U.S. income tax provision / (benefit) | (61.8) | 37.6 | (31.4) | ||||||||
Total Effective Tax Rate | 94.7 | 156.4 | 38.6 | ||||||||
Continuing operations | $ 49.3 | $ (26) | $ 33.4 | $ 37.8 | $ 24.9 | $ 41.3 | $ 57.4 | $ 41.3 | 94.5 | 164.9 | (67.8) |
Discontinued operations | $ 0.2 | $ (8.5) | $ 106.4 |
Income Taxes (Schedule Of Perce
Income Taxes (Schedule Of Percentage Of Pretax Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income tax expense (benefit) | |||||||||||
Federal income tax rate | 21.00% | 35.00% | |||||||||
Increase (decrease) due to: | |||||||||||
Effective Tax Rate — Continuing operations | $ 49.3 | $ (26) | $ 33.4 | $ 37.8 | $ 24.9 | $ 41.3 | $ 57.4 | $ 41.3 | $ 94.5 | $ 164.9 | $ (67.8) |
Total Effective Tax Rate | $ 94.7 | $ 156.4 | $ 38.6 | ||||||||
Total Effective Tax Rate | 15.20% | 25.90% | 7.60% | ||||||||
Continuing Operations | |||||||||||
Effective Income Tax Rate Reconciliation [Line Items] | |||||||||||
Pretax Income | $ 623.9 | $ 637 | $ 191.6 | ||||||||
Income tax expense (benefit) | |||||||||||
Federal income tax rate | $ 131.1 | $ 133.8 | $ 67 | ||||||||
Federal income tax rate | 21.00% | 21.00% | 35.00% | ||||||||
Increase (decrease) due to: | |||||||||||
State and local income taxes, net of federal income tax benefit | $ 32.1 | $ 30.2 | $ 4.4 | ||||||||
Non-deductible goodwill | 58.7 | ||||||||||
Domestic tax credits | (11.1) | (13.2) | (20.7) | ||||||||
Cumulative Method Change — Tax Advantaged Investments | 26.6 | ||||||||||
Effect of tax law changes | (22.6) | ||||||||||
Difference in tax rates applicable to non-U.S. earnings | (1.4) | 7.2 | (1.6) | ||||||||
International income subject to U.S. tax | 1.1 | 8.7 | 1.2 | ||||||||
Unrecognized tax expense (benefit) | (12.1) | 1.5 | (0.2) | ||||||||
Deferred income taxes on international unremitted earnings | (53.4) | 12.4 | 4.6 | ||||||||
International Restructuring | 13.6 | (237.9) | |||||||||
Valuation allowances | (10) | (28.9) | 60.5 | ||||||||
Other | 18.2 | (0.4) | (7.8) | ||||||||
Effective Tax Rate — Continuing operations | $ 94.5 | $ 164.9 | $ (67.8) | ||||||||
State and local income taxes, net of federal income tax benefit | 5.10% | 4.70% | 2.30% | ||||||||
Non-deductible goodwill | 30.70% | ||||||||||
Domestic tax credits | (1.80%) | (2.10%) | (10.80%) | ||||||||
Cumulative Method Change — Tax Advantaged Investments | 13.90% | ||||||||||
Effect of tax law changes | (11.8) | ||||||||||
Difference in tax rates applicable to non-U.S. earnings | (0.20%) | 1.10% | (0.80%) | ||||||||
International income subject to U.S. tax | 0.20% | 1.40% | 0.60% | ||||||||
Unrecognized tax expense (benefit) | (1.90%) | 0.20% | (0.10%) | ||||||||
Deferred income taxes on international unremitted earnings | (8.60%) | 1.90% | 2.40% | ||||||||
International Restructuring | 2.20% | (124.20%) | |||||||||
Valuation allowances | (1.60%) | (4.40%) | 31.60% | ||||||||
Other | 2.90% | (0.10%) | (4.20%) | ||||||||
Effective Tax Rate — Continuing operations | 15.10% | 25.90% | (35.40%) | ||||||||
Discontinued Operations | |||||||||||
Effective Income Tax Rate Reconciliation [Line Items] | |||||||||||
Pretax Income | $ 0.7 | $ (33.4) | $ 315.2 | ||||||||
Income tax expense (benefit) | |||||||||||
Federal income tax rate | $ 0.1 | $ (7) | $ 110.3 | ||||||||
Federal income tax rate | 21.00% | 21.00% | 35.00% | ||||||||
Increase (decrease) due to: | |||||||||||
State and local income taxes, net of federal income tax benefit | $ 0.1 | $ (1.5) | $ 7.2 | ||||||||
Difference in tax rates applicable to non-U.S. earnings | (93.2) | ||||||||||
International income subject to U.S. tax | 44.2 | ||||||||||
Deferred income taxes on international unremitted earnings | 39.7 | ||||||||||
Other | (1.8) | ||||||||||
Effective Tax Rate — Discontinued operations | $ 0.2 | $ (8.5) | $ 106.4 | ||||||||
State and local income taxes, net of federal income tax benefit | 4.70% | 4.30% | 2.30% | ||||||||
Difference in tax rates applicable to non-U.S. earnings | (29.60%) | ||||||||||
International income subject to U.S. tax | 14.00% | ||||||||||
Deferred income taxes on international unremitted earnings | 12.60% | ||||||||||
Other | (0.50%) | ||||||||||
Effective Tax Rate — Discontinued operations | 25.70% | 25.30% | 33.80% | ||||||||
Discontinued Operation | $ 0.2 | $ (8.5) | $ 106.4 |
Income Taxes (Schedule Of Tax E
Income Taxes (Schedule Of Tax Effects Of Deferred Income Tax Assets And Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Tax Assets: | ||
Net operating loss (NOL) carry forwards | $ 686.2 | $ 765.1 |
Basis difference in loans | 177.6 | 200.9 |
Provision for credit losses | 130.6 | 127.5 |
Accrued liabilities and reserves | 87.2 | 91.1 |
Deferred stock-based compensation | 18 | 16.7 |
Domestic tax credits | 117.3 | 124.1 |
Capital Loss Carryforward | 2.5 | 11.4 |
Unrealized net losses on securities AFS | 28.1 | |
Other | 48.3 | 34.3 |
Total gross deferred tax assets | 1,267.7 | 1,399.2 |
Deferred Tax Liabilities: | ||
Operating leases | (1,153.4) | (1,015.7) |
Loans and direct financing leases | (20.8) | (28.8) |
Basis difference in mortgage backed securities | (0.6) | |
Basis difference in federal home loan bank stock | (5.5) | (15.8) |
Non-U.S. unremitted earnings | (0.6) | (55.1) |
Unrealized net gains on securities AFS | (5.7) | |
Unrealized foreign exchange gains | (21) | |
Goodwill and intangibles | (23.3) | (22.7) |
Other | (25) | (26.3) |
Total deferred tax liabilities | (1,234.3) | (1,186) |
Total net deferred tax asset before valuation allowances | 33.4 | 213.2 |
Less: Valuation allowances | (198.5) | (229.8) |
Net deferred tax liability after valuation allowances | $ (165.1) | $ (16.6) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | |||||||||||
Net operating loss (NOL) carry forwards | $ 686.2 | $ 765.1 | $ 686.2 | $ 765.1 | |||||||
Continuing operations | 49.3 | $ (26) | $ 33.4 | $ 37.8 | 24.9 | $ 41.3 | $ 57.4 | $ 41.3 | 94.5 | 164.9 | $ (67.8) |
Gross tax benefit | 1,267.7 | 1,399.2 | 1,267.7 | 1,399.2 | |||||||
Capital loss | 2.5 | 11.4 | 2.5 | 11.4 | |||||||
Partially offset of valuation allowance against unused portion of capital loss | $ 0.5 | ||||||||||
Federal income tax rate | 21.00% | 35.00% | |||||||||
Capital loss carryforwards valuation allowance | 10.5 | 10.5 | $ 39.6 | ||||||||
Capital losses carry forward period | 5 years | ||||||||||
Deferred tax assets, valuation allowance | 198.5 | 229.8 | $ 198.5 | 229.8 | |||||||
Reduction in uncertain tax positions | (0.8) | ||||||||||
Recognized increase in interest and penalties associated with uncertain tax positions | 0.4 | ||||||||||
Accrual for interest and penalties | 6.5 | 6.5 | |||||||||
Unrecognized tax benefits | 19.9 | 20.7 | 19.9 | 20.7 | |||||||
Increase(decrease) to tax benefits potential liability penalties | 10 | 10 | |||||||||
U.S. Federal | |||||||||||
Income Tax Contingency [Line Items] | |||||||||||
Deferred tax asset | 387.2 | 387.2 | |||||||||
Operating loss carryforwards | 1,900 | $ 1,900 | |||||||||
Operating loss carryforwards, expiration period | 2029 | ||||||||||
Operating loss carryforwards, valuation allowance | 0 | $ 0 | |||||||||
Continuing operations | $ 177.4 | ||||||||||
Gross tax benefit | 234.2 | ||||||||||
Capital loss | 610.5 | ||||||||||
Partially offset of valuation allowance against unused portion of capital loss | $ 56.8 | ||||||||||
Capital loss carryforwards valuation allowance | 9 | 9 | |||||||||
U.S. State | |||||||||||
Income Tax Contingency [Line Items] | |||||||||||
Deferred tax asset | 287 | 287 | |||||||||
Operating loss carryforwards | 5,000 | $ 5,000 | |||||||||
Operating loss carryforwards, expiration period | 2020 | ||||||||||
Operating loss carryforwards, valuation allowance | 183.2 | $ 183.2 | |||||||||
Capital loss carryforwards valuation allowance | 1.5 | 1.5 | |||||||||
Foreign Tax Authority | |||||||||||
Income Tax Contingency [Line Items] | |||||||||||
Deferred tax asset | 12 | 12 | |||||||||
Operating loss carryforwards | 47.3 | $ 47.3 | |||||||||
Operating loss carryforwards, expiration period | 2021 | ||||||||||
Deferred tax assets, valuation allowance | $ 14.8 | $ 18 | $ 14.8 | $ 18 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of The Beginning And Ending Amount Of Unrecognized Tax Benefits) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Income Tax Contingency [Line Items] | |
Beginning balance | $ 20.7 |
Additions for tax positions related to prior years | 19.7 |
Reductions for tax positions of prior years | (6.1) |
Expiration of statutes of limitations | (6.8) |
Settlements | (8.1) |
Foreign currency revaluation | 0.5 |
Ending balance | 19.9 |
Liabilities for Unrecognized Tax Benefits | |
Income Tax Contingency [Line Items] | |
Beginning balance | 13.8 |
Additions for tax positions related to prior years | 15.2 |
Reductions for tax positions of prior years | (3.8) |
Expiration of statutes of limitations | (6.8) |
Settlements | (5.3) |
Foreign currency revaluation | 0.3 |
Ending balance | 13.4 |
Interest / Penalties | |
Income Tax Contingency [Line Items] | |
Beginning balance | 6.9 |
Additions for tax positions related to prior years | 4.5 |
Reductions for tax positions of prior years | (2.3) |
Settlements | (2.8) |
Foreign currency revaluation | 0.2 |
Ending balance | $ 6.5 |
Income Taxes (Schedule of Earli
Income Taxes (Schedule of Earliest Tax Years That Remain Subject to Examination By Major Jurisdiction (Details) - Earliest Tax Years | 12 Months Ended |
Dec. 31, 2019 | |
U.S. Federal | |
Income Tax Examination [Line Items] | |
Income tax year under examination, jurisdiction | 2017 |
New York State and City | |
Income Tax Examination [Line Items] | |
Income tax year under examination, jurisdiction | 2015 |
California | |
Income Tax Examination [Line Items] | |
Income tax year under examination, jurisdiction | 2014 |
Canada | |
Income Tax Examination [Line Items] | |
Income tax year under examination, jurisdiction | 2012 |
Retirement, Postretirement an_3
Retirement, Postretirement and Other Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Interest credit for accumulated balances | 2.98% | 2.60% | 2.84% |
Cost of defined contribution plans | $ 20.5 | $ 19.2 | $ 18.7 |
Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected future contributions for defined benefit plans in next fiscal year | $ 9.1 | ||
Retirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Direct investments in equity securities of CIT or its subsidiaries | 0 | ||
Equity securities | Retirement Benefits | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation percentage allowed by asset allocation policy | 15.00% | ||
Equity securities | Retirement Benefits | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation percentage allowed by asset allocation policy | 35.00% | ||
Debt Securities | Retirement Benefits | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation percentage allowed by asset allocation policy | 35.00% | ||
Debt Securities | Retirement Benefits | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation percentage allowed by asset allocation policy | 65.00% | ||
Global Asset Allocations | Retirement Benefits | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation percentage allowed by asset allocation policy | 15.00% | ||
Global Asset Allocations | Retirement Benefits | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation percentage allowed by asset allocation policy | 25.00% | ||
Hedge Fund, measured at NAV | Retirement Benefits | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation percentage allowed by asset allocation policy | 5.00% | ||
Hedge Fund, measured at NAV | Retirement Benefits | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation percentage allowed by asset allocation policy | 10.00% |
Retirement, Postretirement an_4
Retirement, Postretirement and Other Benefit Plans (Schedule of Changes in Benefit Obligation, Plan assets, Funded status and Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | $ 414 | $ 439.8 | |
Interest cost | 15.8 | 14.7 | $ 16 |
Actuarial (gain) / loss | 26.5 | (16.1) | |
Benefits paid | (29.7) | (23.7) | |
Other | (0.8) | (0.7) | |
Benefit obligation at end of year | 425.8 | 414 | 439.8 |
Change in plan assets | |||
Fair value of plan assets at beginning of period | 333.4 | 374.3 | |
Actual return on plan assets | 70 | (23.3) | |
Employer contributions | 6.9 | 6.7 | |
Benefits paid | (29.7) | (23.7) | |
Other | (0.8) | (0.6) | |
Fair value of plan assets at end of period | 379.8 | 333.4 | 374.3 |
Funded status at end of year | (46) | (80.6) | |
Information for pension plans with a benefit obligation in excess of plan assets | |||
Projected benefit obligation | 425.8 | 414 | |
Accumulated benefit obligation | 425.8 | 414 | |
Fair value of plan assets | 379.8 | 333.4 | |
Post-Retirement Benefits | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | 29.8 | 34.5 | |
Interest cost | 1.2 | 1.2 | 1.2 |
Actuarial (gain) / loss | 3.1 | (4.1) | |
Benefits paid | (3.9) | (3.5) | |
Other | 1.1 | 1.7 | |
Benefit obligation at end of year | 31.3 | 29.8 | $ 34.5 |
Change in plan assets | |||
Employer contributions | 2.8 | 1.7 | |
Benefits paid | (3.9) | (3.5) | |
Other | 1.1 | 1.8 | |
Funded status at end of year | (31.3) | (29.8) | |
Information for pension plans with a benefit obligation in excess of plan assets | |||
Projected benefit obligation | $ 31.3 | $ 29.8 |
Retirement, Postretirement an_5
Retirement, Postretirement and Other Benefit Plans (Schedule of Changes in Benefit Obligation, Plan assets, Funded status and Net Periodic Benefit Cost) (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Compensation And Retirement Disclosure [Abstract] | ||
Company assets related to non-qualified US executive retirement plan obligation not included in plan assets | $ 79.3 | $ 83.6 |
Retirement, Postretirement an_6
Retirement, Postretirement and Other Benefit Plans (Net Periodic Benefit Cost and Other Amounts Recognized in OCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Changes in Plan Assets and Benefit Obligations Recognized in OCI | |||
Net loss/(gain) | $ (53.3) | $ 42.2 | $ (26.9) |
Total recognized in OCI | (28.8) | 24.9 | (18.6) |
Retirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | 15.8 | 14.7 | 16 |
Expected return on plan assets | (16.7) | (18.9) | (19.3) |
Other | 2 | 1.3 | 6.1 |
Net periodic benefit cost (credit) | 1.1 | (2.9) | 2.8 |
Other Changes in Plan Assets and Benefit Obligations Recognized in OCI | |||
Net loss/(gain) | (26.8) | 26.2 | (17.1) |
Amortization, settlement or curtailment recognition | (2) | (1.3) | (1.5) |
Total recognized in OCI | (28.8) | 24.9 | (18.6) |
Total recognized in net periodic benefit cost and OCI | (27.7) | 22 | (15.8) |
Post-Retirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | 1.2 | 1.2 | 1.2 |
Other | (1.9) | (1) | (1.5) |
Net periodic benefit cost (credit) | (0.7) | 0.2 | (0.3) |
Other Changes in Plan Assets and Benefit Obligations Recognized in OCI | |||
Net loss/(gain) | 3.1 | (4.1) | 0.5 |
Amortization, settlement or curtailment recognition | 1.9 | 1 | 1.6 |
Total recognized in OCI | 5 | (3.1) | 2.1 |
Total recognized in net periodic benefit cost and OCI | $ 4.3 | $ (2.9) | $ 1.8 |
Retirement, Postretirement an_7
Retirement, Postretirement and Other Benefit Plans (Net Periodic Benefit Cost and Other Amounts Recognized in OCI) (Parenthetical) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Discontinued Operations | Retirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Curtailment and special termination benefit costs | $ 4.7 |
Retirement, Postretirement an_8
Retirement, Postretirement and Other Benefit Plans (Schedule of Net Periodic Benefit Cost and Other Amounts Recognized in AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |||
Asset (Gains)/Losses | $ (53.3) | $ 42.2 | $ (26.9) |
Discount Rate Decrease/(Increase) | 39 | (21.5) | 12.7 |
Interest Crediting Rate (Decrease)/Increase | (8.3) | 4.3 | (2.2) |
Other | (6.2) | (0.1) | (2.2) |
Total recognized in OCI | $ (28.8) | $ 24.9 | $ (18.6) |
Retirement, Postretirement an_9
Retirement, Postretirement and Other Benefit Plans (Weighted Average Assumptions Used in Measurement of Benefit Obligations) (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.00% | 4.00% |
Interest crediting rate | 1.75% | 2.75% |
Post-Retirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.00% | 4.00% |
Health care cost trend rate, Pre-65 | 5.80% | 6.10% |
Health care cost trend rate, Post-65 | 6.50% | 6.90% |
Ultimate health care cost trend rate | 4.50% | 4.50% |
Year ultimate reached | 2037 | 2037 |
Retirement, Postretirement a_10
Retirement, Postretirement and Other Benefit Plans (Weighted Average Assumptions Used to Determine Net Periodic Benefit Costs) (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.00% | 3.50% |
Expected long-term return on plan assets | 5.25% | 5.25% |
Interest crediting rate | 2.75% | 2.25% |
Post-Retirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.00% | 3.50% |
Retirement, Postretirement a_11
Retirement, Postretirement and Other Benefit Plans (Asset Fair Value Measurements) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at net asset value | $ 378.2 | $ 207.1 |
Total assets at fair value and net asset value | 379.8 | 333.4 |
Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 1.6 | 11.8 |
Mutual Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 76 | |
Exchange Traded Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 17.7 | |
Common Stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 19.6 | |
Short Term Investment Fund, measured at NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 1.2 | |
Common Collective Trust, measured at NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at net asset value | 378.2 | 188.2 |
Partnership, measured at NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at net asset value | 9.4 | |
Hedge Fund, measured at NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at net asset value | 9.5 | |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 1.6 | 126.3 |
Level 1 | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | $ 1.6 | 11.8 |
Level 1 | Mutual Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 76 | |
Level 1 | Exchange Traded Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 17.7 | |
Level 1 | Common Stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 19.6 | |
Level 1 | Short Term Investment Fund, measured at NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | $ 1.2 |
Retirement, Postretirement a_12
Retirement, Postretirement and Other Benefit Plans (Schedule of Benefits Projected to be Paid from Plan Assets or from General Assets Using Current Actuarial Assumptions) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Retirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 28.6 |
2021 | 28.1 |
2022 | 26.9 |
2023 | 27.6 |
2024 | 26.7 |
2025 – 2029 | 134.9 |
Post-Retirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 2.5 |
2021 | 2.4 |
2022 | 2.3 |
2023 | 2.3 |
2024 | 2.2 |
2025 – 2029 | 9.9 |
Medicare Subsidy Receipts | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 0.2 |
2021 | 0.2 |
2022 | 0.1 |
2023 | 0.1 |
2024 | 0.1 |
2025 – 2029 | $ 0.4 |
Retirement, Postretirement A_13
Retirement, Postretirement And Other Benefit Plans (Share-Based Compensation Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 29, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense related to equity-based awards | $ 44,200,000 | $ 38,800,000 | $ 41,900,000 | |
Compensation expense related to non-vested awards | $ 26,100,000 | |||
Compensation expense related to non-vested awards, period for recognition | 1 year 10 months 13 days | |||
Percentage mix of long-term incentive awards that are performance-based RSU | 50.00% | 50.00% | ||
Percentage mix of long-term incentive awards that are PSUs | 50.00% | 50.00% | ||
Awards vested and settled in stock | $ 51,100,000 | $ 72,800,000 | $ 59,000,000 | |
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance period | 3 years | |||
Compensation expense related to equity-based awards | $ 43,800,000 | |||
Award vesting percentage at end of vesting period | 100.00% | |||
Restricted Stock Units | Vesting Tranche One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 33.33% | |||
Restricted Stock Units | Vesting Tranche Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 33.33% | |||
Restricted Stock Units | Vesting Tranche Three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 33.33% | |||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance period | 3 years | |||
Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 2,000,000 | |||
Minimum withholding percentage for ESPP | 1.00% | |||
Maximum withholding percentage for ESPP | 10.00% | |||
Purchase price for employees under ESPP | 85.00% | |||
Maximum purchase per employee per year under ESPP | $ 25,000 | |||
Number of shares purchased under ESPP (in shares) | 64,078 | 61,722 | 54,684 | |
2017 and 2018 PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance period | 3 years | |||
2017 and 2018 PSUs | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage at end of vesting period | 150.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other Than Options, Allowed Adjustment to ROTCE for Performance Based Award | 20.00% | |||
2017 and 2018 PSUs | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage at end of vesting period | 0.00% | |||
2016 Omnibus Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of new shares authorized (in shares) | 3,733,327 | 5,000,000 | ||
Number of options outstanding (in shares) | 2,014,049 |
Retirement, Postretirement a_14
Retirement, Postretirement and Other Benefit Plans (Summary of Restricted Stock and RSU Activity) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Stock-Settled Restricted Stock, RSUs and PSUs | ||
Number of Shares | ||
Unvested at beginning of period (in shares) | 1,901,266 | 2,529,441 |
Vested / unsettled awards at beginning of period (in shares) | 258,169 | 246,057 |
Forfeited/cancelled (in shares) | (75,343) | (123,950) |
Vested/settled award (in shares) | (1,051,114) | (1,382,845) |
Vested / unsettled awards (in shares) | (207,797) | (258,169) |
Unvested at end of period (in shares) | 1,806,252 | 1,901,266 |
Weighted Average Grant Date Value | ||
Unvested at beginning of period (in dollars per share) | $ 43.88 | $ 37.55 |
Vested / unsettled awards at beginning of period (in dollars per share) | 34.15 | 45.09 |
Forfeited/cancelled (in dollars per share) | 45.48 | 41.97 |
Vested/settled award (in dollars per share) | 37.89 | 39.65 |
Vested / settled awards (in dollars per share) | 41.58 | 34.15 |
Unvested at end of period (in dollars per share) | $ 50.14 | $ 43.88 |
Stock-Settled PSUs | ||
Number of Shares | ||
PSUs - granted to employees (in shares) | 178,075 | 149,067 |
PSUs - incremental for performance above 2012-14 targets (in shares) | (8,086) | 17,716 |
Weighted Average Grant Date Value | ||
PSUs - granted to employee (in dollars per share) | $ 53.42 | $ 55.09 |
PSUs - incremental for performance above 2012-14 targets (in dollars per share) | $ 32.75 | $ 45.88 |
Cash-Settled Restricted Stock, RSUs and PSUs | ||
Number of Shares | ||
Unvested at beginning of period (in shares) | 13,192 | 15,071 |
Vested/settled award (in shares) | (6,462) | (8,229) |
Unvested at end of period (in shares) | 11,974 | 13,192 |
Weighted Average Grant Date Value | ||
Unvested at beginning of period (in dollars per share) | $ 47.92 | $ 42.22 |
Vested/settled award (in dollars per share) | 44.97 | 41.52 |
Unvested at end of period (in dollars per share) | $ 50.86 | $ 47.92 |
Employees | Stock-Settled RSUs | ||
Number of Shares | ||
RSUs - granted (in shares) | 782,122 | 702,231 |
Weighted Average Grant Date Value | ||
RSUs - granted (in dollars per share) | $ 50.51 | $ 51.33 |
Director | Stock-Settled RSUs | ||
Number of Shares | ||
RSUs - granted (in shares) | 28,960 | 21,718 |
Weighted Average Grant Date Value | ||
RSUs - granted (in dollars per share) | $ 50.33 | $ 51.91 |
Director | Cash-Settled RSUs | ||
Number of Shares | ||
RSUs - granted (in shares) | 5,244 | 6,350 |
Weighted Average Grant Date Value | ||
RSUs - granted (in dollars per share) | $ 51.01 | $ 53.15 |
Commitments (Summary of Commitm
Commitments (Summary of Commitments) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments And Contingencies Disclosure [Abstract] | ||
Financing assets - Due to Expire Within One Year | $ 2,445.1 | |
Financing assets - Due to Expire After One Year | 4,014.6 | |
Financing assets - Total Outstanding | 6,459.7 | $ 7,136.3 |
Standby letters of credit - Due to Expire Within One Year | 31.4 | |
Standby letters of credit - Due to Expire After One Year | 168.2 | |
Standby letters of credit - Total Outstanding | 199.6 | 226.2 |
Other letters of credit - Due to Expire Within One Year | 5.2 | |
Other letters of credit - Due to Expire After One Year | 1.5 | |
Other letters of credit - Total Outstanding | 6.7 | 12 |
Deferred purchase credit protection agreements - Due to Expire Within One Year | 2,060.6 | |
Deferred purchase credit protection agreements - Due to Expire After One Year | 0 | |
Deferred purchase credit protection agreements - Total Outstanding | 2,060.6 | 1,959.5 |
Rail and other purchase commitments - Due to Expire Within One Year | 813.7 | |
Rail and other purchase commitments - Total Outstanding | $ 813.7 | $ 344.8 |
Commitments (Summary of Commi_2
Commitments (Summary of Commitments) (Parenthetical) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Reverse mortgage loan commitments associated with discontinued operations | $ 23 |
Commitments (Narrative) (Detail
Commitments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments [Line Items] | ||
Financing commitments to trade finance clients that are cancelable only after a notice period, amount | $ 172 | $ 318 |
Deferred Purchase Agreements | ||
Commitments [Line Items] | ||
DPA credit protection provided to clients | 1,966 | 1,895 |
DPA credit line agreements net of deferred purchase agreement credit protection | $ 94 | $ 64 |
Maximum | ||
Commitments [Line Items] | ||
Typical notice period | 90 days | |
Maximum | Deferred Purchase Agreements | ||
Commitments [Line Items] | ||
DPA credit line agreements, cancellation notice period | 90 days |
Contingencies (Narrative) (Deta
Contingencies (Narrative) (Details) $ in Thousands | 1 Months Ended | 12 Months Ended |
Nov. 30, 2019USD ($) | Dec. 31, 2019USD ($)Lawsuit | |
Contingencies [Line Items] | ||
Individual lawsuits Filed | Lawsuit | 43 | |
Litigation settlement amount | $ 9,250 | |
Maximum | ||
Contingencies [Line Items] | ||
Amount of losses in excess of established reserves and insurance related to those matters | $ 60,000 |
Certain Relationships And Rel_2
Certain Relationships And Related Transactions (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Related Party Transaction [Line Items] | |||
Investment in joint venture | [1] | $ 365.6 | $ 313.9 |
Other assets | $ 1,639.2 | 1,309.5 | |
Strategic Credit Partners Holdings LLC | |||
Related Party Transaction [Line Items] | |||
Equity interest percentage | 10.00% | ||
Investment in joint venture | $ 1.9 | 5.6 | |
Strategic Credit Partners Holdings LLC | Loans | |||
Related Party Transaction [Line Items] | |||
Loans sold in joint venture | $ 252.6 | ||
CIT Northbridge | |||
Related Party Transaction [Line Items] | |||
Equity interest percentage | 20.00% | ||
Equity interest percentage owned by other investors | 80.00% | ||
Equity investment | $ 18.2 | 13.6 | |
Investments In Non-Consolidated Entities | |||
Related Party Transaction [Line Items] | |||
Other assets | $ 365.6 | $ 313.9 | |
[1] | Included in this balance are LIHTC of $263.3 million and $217.7 million as of December 31, 2019 and December 31, 2018, respectively, that provide tax benefits to investors in the form of tax deductions from operating losses and tax credits. Refer to Note 1 – Business and Summary of Significant Accounting Policy for additional information. During 2019, 2018 and 2017, the Company recognized total tax benefits of $35.5 million, $34.2 million and $29.6 million, respectively, which included tax credits of $28.0 million, $27.0 million, and $22.6 million recorded in income taxes. During 2019, 2018 and 2017, the Company recorded $29.8 million, $29.1 million and $50.8 million, respectively, in tax provisions under the proportional amortization method. The Company is periodically required to provide additional financial support during the investment period. The Company’s liability for these unfunded commitments are included in Note 12 – Other Liabilities. See also Note 9 – Variable Interest Entities. |
Business Segment Information (N
Business Segment Information (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2019branchSegmentdivision | |
Segment Reporting Information [Line Items] | |
Number of operating segments | Segment | 2 |
Number of branches acquired | branch | 60 |
Commercial Banking | |
Segment Reporting Information [Line Items] | |
Number of divisions | division | 4 |
Business Segment Information (S
Business Segment Information (Segment Pre-Tax Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Segment Pre-tax Income (Loss) | |||||||||||||||
Interest income | $ 481.4 | $ 503.4 | $ 515.5 | $ 516.5 | $ 492 | $ 473.6 | $ 473.6 | $ 451.2 | $ 2,016.8 | $ 1,890.4 | $ 1,835.6 | ||||
Interest expense (benefit) | 952 | 815.1 | 717.7 | ||||||||||||
Provision (benefit) for credit losses | 110.8 | 171 | 114.6 | ||||||||||||
Rental income on operating leases | 215.3 | 211.7 | 213 | 217.7 | 229.8 | 264.3 | 261.3 | 253.6 | 857.7 | 1,009 | 1,007.4 | ||||
Other non-interest income | 111.3 | 101 | 106.1 | 96.8 | 47.5 | 86.2 | 135.4 | 104.7 | 415.2 | 373.8 | 364.2 | ||||
Depreciation on operating lease equipment | 76.4 | 76 | 76.8 | 79.4 | 79.5 | 78 | 77.2 | 76.4 | 308.6 | 311.1 | 296.3 | ||||
Maintenance and other operating lease expenses | 40.7 | $ 41.9 | $ 48.3 | $ 49.8 | 52.9 | $ 56.6 | $ 63.5 | $ 57.4 | 180.7 | 230.4 | 222.9 | ||||
Goodwill impairment | 255.6 | ||||||||||||||
Operating expenses/loss on debt extinguishment and deposit redemption | 1,113.7 | 1,108.6 | 1,408.5 | ||||||||||||
Income from continuing operations before provision (benefit) for income taxes | 623.9 | 637 | 191.6 | ||||||||||||
Select Period End Balances | |||||||||||||||
Loans | 30,998.9 | 30,795.4 | 30,998.9 | 30,795.4 | 29,113.9 | ||||||||||
Credit balances of factoring clients | (1,176.2) | (1,674.4) | (1,176.2) | (1,674.4) | (1,468.6) | ||||||||||
Assets held for sale | 32.1 | 88.4 | 32.1 | 88.4 | 2,263.1 | ||||||||||
Operating lease equipment, net | 7,319.7 | [1] | 6,970.6 | [1] | 7,319.7 | [1] | 6,970.6 | [1] | 6,738.9 | ||||||
Corporate | |||||||||||||||
Segment Pre-tax Income (Loss) | |||||||||||||||
Interest income | 226.2 | 218.5 | 209.5 | ||||||||||||
Interest expense (benefit) | 319 | 242.3 | 251.8 | ||||||||||||
Other non-interest income | 49.8 | 18 | 69.1 | ||||||||||||
Operating expenses/loss on debt extinguishment and deposit redemption | 67.2 | 46.4 | 315.3 | ||||||||||||
Income from continuing operations before provision (benefit) for income taxes | (110.2) | (52.2) | (288.5) | ||||||||||||
Select Period End Balances | |||||||||||||||
Assets held for sale | 0.1 | 20.2 | 0.1 | 20.2 | 63.3 | ||||||||||
Commercial Banking | |||||||||||||||
Select Period End Balances | |||||||||||||||
Loans | 24,393.4 | 24,263.4 | 24,393.4 | 24,263.4 | |||||||||||
Commercial Banking | Operating Segments | |||||||||||||||
Segment Pre-tax Income (Loss) | |||||||||||||||
Interest income | 1,425.7 | 1,333 | 1,248 | ||||||||||||
Interest expense (benefit) | 758.3 | 716.3 | 517.7 | ||||||||||||
Provision (benefit) for credit losses | 117.3 | 167.1 | 88.7 | ||||||||||||
Rental income on operating leases | 857.7 | 1,009 | 1,007.4 | ||||||||||||
Other non-interest income | 331.6 | 320.8 | 291 | ||||||||||||
Depreciation on operating lease equipment | 308.6 | 311.1 | 296.3 | ||||||||||||
Maintenance and other operating lease expenses | 180.7 | 230.4 | 222.9 | ||||||||||||
Goodwill impairment | 255.6 | ||||||||||||||
Operating expenses/loss on debt extinguishment and deposit redemption | 701.5 | 692.9 | 691.7 | ||||||||||||
Income from continuing operations before provision (benefit) for income taxes | 548.6 | 545 | 473.5 | ||||||||||||
Select Period End Balances | |||||||||||||||
Loans | 24,393.4 | 24,263.4 | 24,393.4 | 24,263.4 | 23,159.3 | ||||||||||
Credit balances of factoring clients | (1,176.2) | (1,674.4) | (1,176.2) | (1,674.4) | (1,468.6) | ||||||||||
Assets held for sale | 23.1 | 64.3 | 23.1 | 64.3 | 1,334.2 | ||||||||||
Operating lease equipment, net | 7,319.7 | 6,970.6 | 7,319.7 | 6,970.6 | 6,738.9 | ||||||||||
Consumer Banking | |||||||||||||||
Select Period End Balances | |||||||||||||||
Loans | 6,605.5 | 6,532 | 6,605.5 | 6,532 | |||||||||||
Consumer Banking | Operating Segments | |||||||||||||||
Segment Pre-tax Income (Loss) | |||||||||||||||
Interest income | 364.9 | 338.9 | 378.1 | ||||||||||||
Interest expense (benefit) | (125.3) | (143.5) | (51.8) | ||||||||||||
Provision (benefit) for credit losses | (6.5) | 3.9 | 25.9 | ||||||||||||
Other non-interest income | 33.8 | 35 | 4.1 | ||||||||||||
Operating expenses/loss on debt extinguishment and deposit redemption | 345 | 369.3 | 401.5 | ||||||||||||
Income from continuing operations before provision (benefit) for income taxes | 185.5 | 144.2 | 6.6 | ||||||||||||
Select Period End Balances | |||||||||||||||
Loans | 6,605.5 | 6,532 | 6,605.5 | 6,532 | 5,954.6 | ||||||||||
Assets held for sale | $ 8.9 | $ 3.9 | $ 8.9 | $ 3.9 | $ 865.6 | ||||||||||
[1] | Includes off-lease Rail equipment of $519.1 million and $380.4 million at December 31, 2019 and December 31, 2018, respectively. |
Business Segment Information (G
Business Segment Information (Geographic Region) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Assets | $ 50,832.8 | $ 48,537.4 | $ 49,278.7 |
Total Revenue from continuing operations | 3,289.7 | 3,273.2 | 3,207.2 |
Income (loss) from continuing operations before provision (benefit) for income taxes | 623.9 | 637 | 191.6 |
Income (loss) from continuing operations | 529.4 | 472.1 | 259.4 |
Assets of discontinued operations | 0 | 249.8 | 501.3 |
U.S. | |||
Segment Reporting Information [Line Items] | |||
Assets | 50,044.7 | 47,676.3 | 46,825.9 |
Total Revenue from continuing operations | 3,242.2 | 3,080.7 | 3,046.1 |
Income (loss) from continuing operations before provision (benefit) for income taxes | 609.2 | 471.4 | 251.9 |
Income (loss) from continuing operations | 452.9 | 344.7 | 287.3 |
Non-U.S. operations | |||
Segment Reporting Information [Line Items] | |||
Assets | 788.1 | 861.1 | 2,452.8 |
Total Revenue from continuing operations | 47.5 | 192.5 | 161.1 |
Income (loss) from continuing operations before provision (benefit) for income taxes | 14.7 | 165.6 | (60.3) |
Income (loss) from continuing operations | $ 76.5 | $ 127.4 | $ (27.9) |
Goodwill And Intangible Asset_2
Goodwill And Intangible Assets (Narrative) (Details) $ in Millions | Aug. 05, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2016USD ($) |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 369.9 | $ 369.9 | |||||
Goodwill impairment | $ 255.6 | ||||||
Accumulated amortization | 116.3 | 93.1 | |||||
Projected amortization for 2020 | 22.8 | ||||||
Projected amortization for 2021 | 22 | ||||||
Projected amortization for 2022 | 13.5 | ||||||
Projected amortization for 2023 | 3 | ||||||
Projected amortization for 2024 | $ 3 | ||||||
Core deposit intangibles | |||||||
Business Acquisition [Line Items] | |||||||
Estimated useful life | 3 years | ||||||
Accumulated amortization | $ 79.7 | $ 61.7 | |||||
Equipment Finance | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill impairment | $ 247 | ||||||
Commercial Services | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill impairment | $ 8.6 | ||||||
Long-Term Revenue Growth Rate | Reporting Units | |||||||
Business Acquisition [Line Items] | |||||||
Fair value input rate | 3 | ||||||
Discount Rate | Reporting Units | Minimum | |||||||
Business Acquisition [Line Items] | |||||||
Fair value input rate | 10.75 | ||||||
Discount Rate | Reporting Units | Maximum | |||||||
Business Acquisition [Line Items] | |||||||
Fair value input rate | 12.75 | ||||||
Control Premium | Reporting Units | |||||||
Business Acquisition [Line Items] | |||||||
Fair value input rate | 25 | ||||||
OneWest Bank | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill impairment | $ 319.4 | ||||||
Commercial Banking | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 326.7 | ||||||
Consumer and Community Banking | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 43.2 | ||||||
Consumer and Community Banking | OneWest Bank | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 362.6 | ||||||
Customer Relationships and Trade Names | OneWest Bank | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets acquired | $ 165 |
Goodwill And Intangible Asset_3
Goodwill And Intangible Assets (Summary Of Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | $ 182.3 | $ 182.3 | |
Accumulated Amortization | (116.3) | (93.1) | |
Net Carrying Amount | 66 | 89.2 | $ 113 |
Core deposit intangibles | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | 126.3 | 126.3 | |
Accumulated Amortization | (79.7) | (61.7) | |
Net Carrying Amount | 46.6 | 64.6 | 82.7 |
Trade names | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | 24.7 | 24.7 | |
Accumulated Amortization | (12.7) | (10.1) | |
Net Carrying Amount | 12 | 14.6 | 17 |
Customer relationships | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | 23.9 | 23.9 | |
Accumulated Amortization | (16.2) | (13.6) | |
Net Carrying Amount | 7.7 | 10.3 | $ 13.3 |
Other | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | 7.4 | 7.4 | |
Accumulated Amortization | (7.7) | (7.7) | |
Intangible Assets, Rentals Below Current Market Rates | $ (0.3) | $ (0.3) |
Goodwill And Intangible Asset_4
Goodwill And Intangible Assets (Summary Of Intangible Assets Rollforward) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Intangible Assets, Beginning Balance | $ 89.2 | $ 113 |
Amortization | (23.2) | (23.8) |
Intangible Assets, Ending Balance | 66 | 89.2 |
Core deposit intangibles | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Intangible Assets, Beginning Balance | 64.6 | 82.7 |
Amortization | (18) | (18.1) |
Intangible Assets, Ending Balance | 46.6 | 64.6 |
Trade names | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Intangible Assets, Beginning Balance | 14.6 | 17 |
Amortization | (2.6) | (2.4) |
Intangible Assets, Ending Balance | 12 | 14.6 |
Customer relationships | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Intangible Assets, Beginning Balance | 10.3 | 13.3 |
Amortization | (2.6) | (3) |
Intangible Assets, Ending Balance | 7.7 | 10.3 |
Other | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Amortization | (0.3) | |
Intangible Assets, Rentals Below Current Market Rates | $ (0.3) | $ (0.3) |
Severance Liabilities (Summary
Severance Liabilities (Summary of Liabilities (Pre-Tax) Related to Employee Severance) (Details) - Severance $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)employee | Dec. 31, 2018USD ($)employee | |
Number of Employees | ||
Beginning balance | employee | 220 | 538 |
Additions and adjustments | employee | 36 | (25) |
Utilization | employee | (123) | (293) |
Ending balance | employee | 133 | 220 |
Liability | ||
Beginning balance | $ | $ 13.8 | $ 28.3 |
Additions and adjustments | $ | 15.1 | (1.1) |
Utilization | $ | (11.9) | (13.4) |
Ending balance | $ | $ 17 | $ 13.8 |
Severance Liabilities (Narrativ
Severance Liabilities (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Facilities | |||
Provisions for severance | $ 15,100,000 | $ 0 | $ 53,000,000 |
Parent Company Financial Stat_3
Parent Company Financial Statements (Condensed Parent Company Only Balance Sheets) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | |||
Cash and deposits | $ 990.1 | $ 198.8 | $ 278.6 |
Securities purchased under agreement to resell | 950 | 400 | |
Goodwill | 369.9 | 369.9 | |
Other assets | 1,639.2 | 1,309.5 | |
Total Assets | 50,832.8 | 48,537.4 | $ 49,278.7 |
Liabilities and Equity: | |||
Borrowings | 6,473.4 | 8,118.8 | |
Other liabilities | 1,704.7 | 1,261.1 | |
Total Liabilities | 44,493.8 | 42,590.8 | |
Total Stockholders' Equity | 6,339 | 5,946.6 | |
Total Liabilities and Equity | 50,832.8 | 48,537.4 | |
CIT Group Inc. | |||
Assets: | |||
Cash and deposits | 15.3 | 17.1 | |
Cash held at bank subsidiary | 361.5 | 680.1 | |
Securities purchased under agreement to resell | 100 | ||
Receivables from non-bank subsidiaries | 2,401.1 | 2,435.2 | |
Receivables from bank subsidiaries | 654.8 | 305.5 | |
Investment in non-bank subsidiaries | 1,155.2 | 1,166.1 | |
Investment in bank subsidiaries | 5,266.3 | 5,091 | |
Goodwill | 46.9 | 46.9 | |
Other assets | 872.7 | 747.8 | |
Total Assets | 10,773.8 | 10,589.7 | |
Liabilities and Equity: | |||
Borrowings | 3,916.3 | 3,808.4 | |
Liabilities to non-bank subsidiaries | 158.6 | 468.9 | |
Liabilities to bank subsidiaries | 5 | 2.8 | |
Other liabilities | 354.9 | 363 | |
Total Liabilities | 4,434.8 | 4,643.1 | |
Total Stockholders' Equity | 6,339 | 5,946.6 | |
Total Liabilities and Equity | $ 10,773.8 | $ 10,589.7 |
Parent Company Financial Stat_4
Parent Company Financial Statements (Condensed Parent Company Only Statements Of Income And Comprehensive Income ) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income | |||||||||||
Interest income from nonbank subsidiaries | $ 481.4 | $ 503.4 | $ 515.5 | $ 516.5 | $ 492 | $ 473.6 | $ 473.6 | $ 451.2 | $ 2,016.8 | $ 1,890.4 | $ 1,835.6 |
Interest and dividends on interest bearing deposits and investments | 233.5 | 218.6 | 197.5 | ||||||||
Expenses | |||||||||||
Interest expense | 229.8 | 243.9 | 242.7 | 235.6 | 215.5 | 213.9 | 205.2 | 180.5 | 952 | 815.1 | 717.7 |
Total non-interest expenses | 1,603 | 1,650.1 | 2,183.3 | ||||||||
Income from continuing operations before provision (benefit) for income taxes | 623.9 | 637 | 191.6 | ||||||||
(Benefit) provision for income taxes | 49.3 | (26) | 33.4 | 37.8 | 24.9 | 41.3 | 57.4 | 41.3 | 94.5 | 164.9 | (67.8) |
Net income | $ 130.6 | $ 142.8 | $ 137.6 | $ 118.9 | $ 91.8 | $ 131.5 | $ 126.8 | $ 97 | 529.9 | 447.1 | 468.2 |
Other Comprehensive income (loss), net of tax | 126.2 | (91.3) | 53.6 | ||||||||
CIT Group Inc. | |||||||||||
Income | |||||||||||
Interest income from nonbank subsidiaries | 123.4 | 113.4 | 160.5 | ||||||||
Interest income from bank subsidiaries | 16.2 | 19.2 | 15.4 | ||||||||
Interest and dividends on interest bearing deposits and investments | 1.7 | 4.5 | 7.4 | ||||||||
Dividends from nonbank subsidiaries | 25 | 31 | 0 | ||||||||
Dividends from bank subsidiaries | 356 | 218.6 | 359 | ||||||||
Other non-interest income from subsidiaries | 71.5 | 61.8 | 178.6 | ||||||||
Other non-interest income | 39.7 | 51.6 | (127.9) | ||||||||
Total income | 633.5 | 500.1 | 593 | ||||||||
Expenses | |||||||||||
Interest expense | 202.8 | 222 | 324.7 | ||||||||
Interest expense on liabilities to subsidiaries | 15.4 | 40.5 | 50.3 | ||||||||
Other non-interest expenses | 156.5 | 189.9 | 499.4 | ||||||||
Total non-interest expenses | 374.7 | 452.4 | 874.4 | ||||||||
Income from continuing operations before provision (benefit) for income taxes | 258.8 | 47.7 | (281.4) | ||||||||
(Benefit) provision for income taxes | (160.9) | (76.5) | 163.4 | ||||||||
Income (loss) before equity in undistributed net income of subsidiaries | 419.7 | 124.2 | (444.8) | ||||||||
Equity in undistributed net income (loss) of bank subsidiaries | 78.4 | 213.6 | (55.6) | ||||||||
Equity in undistributed net income of nonbank subsidiaries | 31.8 | 109.3 | 968.6 | ||||||||
Net income | 529.9 | 447.1 | 468.2 | ||||||||
Other Comprehensive income (loss), net of tax | 126.2 | (91.3) | 53.6 | ||||||||
Comprehensive income | $ 656.1 | $ 355.8 | $ 521.8 |
Parent Company Financial Stat_5
Parent Company Financial Statements (Condensed Parent Company Only Statements Of Cash Flows) (Details) - USD ($) $ in Millions | Nov. 13, 2019 | May 31, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash Flows from Operations | |||||||||||||
Net income | $ 130.6 | $ 142.8 | $ 137.6 | $ 118.9 | $ 91.8 | $ 131.5 | $ 126.8 | $ 97 | $ 529.9 | $ 447.1 | $ 468.2 | ||
Other operating activities, net | 78.2 | 187.1 | 69.6 | ||||||||||
Net cash flows provided by operations | 927.2 | 982.5 | 534.2 | ||||||||||
Cash Flows from Investing Activities | |||||||||||||
Other investing activities | 22.9 | 44 | 63.6 | ||||||||||
Net cash flows (used in) provided by investing activities | (1,947.2) | 43.8 | 7,064.3 | ||||||||||
Cash Flows from Financing Activities | |||||||||||||
Proceeds from the issuance of term debt | 2,694.3 | 4,608.9 | 2,465.3 | ||||||||||
Repayments of term debt | (4,365.1) | (5,395.9) | (9,601.9) | ||||||||||
Net proceeds from issuance of preferred stock | $ 195.1 | $ 318 | 195.1 | 318 | |||||||||
Repurchase of common stock | (340.9) | (1,626.7) | (3,431.9) | ||||||||||
Dividends paid | (146.7) | (115.9) | (113.7) | ||||||||||
Other financing activities, net | (26.7) | (92.1) | 10.2 | ||||||||||
Net cash flows provided by (used in) financing activities | 1,908.1 | (942.1) | (13,083.1) | ||||||||||
CIT Group Inc. | |||||||||||||
Cash Flows from Operations | |||||||||||||
Net income | 529.9 | 447.1 | 468.2 | ||||||||||
Equity in undistributed earnings of subsidiaries | (110.2) | (322.9) | (1,272) | ||||||||||
Other operating activities, net | (53) | 1,411.1 | 621.5 | ||||||||||
Net cash flows provided by operations | 366.7 | 1,535.3 | (182.3) | ||||||||||
Cash Flows from Investing Activities | |||||||||||||
(Increase) decrease in investments in and advances to subsidiaries | (250.7) | 502.5 | 9,602.6 | ||||||||||
Decrease in investment securities and securities purchased under agreements to resell | 100 | 50 | 250.3 | ||||||||||
Other investing activities | (16.9) | (1.8) | |||||||||||
Net cash flows (used in) provided by investing activities | (167.6) | 550.7 | 9,852.9 | ||||||||||
Cash Flows from Financing Activities | |||||||||||||
Proceeds from the issuance of term debt | 98.6 | 1,879.5 | |||||||||||
Repayments of term debt | (1,854.8) | (7,087.7) | |||||||||||
Net proceeds from issuance of preferred stock | 195.1 | 318 | |||||||||||
Repurchase of common stock | (340.9) | (1,626.7) | (3,431.9) | ||||||||||
Dividends paid | (146.7) | (115.9) | (113.7) | ||||||||||
Net change in advances from subsidiaries | (303) | (376) | 254 | ||||||||||
Other financing activities, net | (22.6) | (71.7) | (20.7) | ||||||||||
Net cash flows provided by (used in) financing activities | (519.5) | (2,165.6) | (10,082) | ||||||||||
Net decrease in cash and cash equivalents | (320.4) | (79.6) | (411.4) | ||||||||||
Cash and cash equivalents, beginning of period | $ 697.2 | $ 776.8 | 697.2 | 776.8 | 1,188.2 | ||||||||
Cash and cash equivalents, end of period | $ 376.8 | $ 697.2 | $ 376.8 | $ 697.2 | $ 776.8 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Schedule Of Selected Quarterly Financial Data) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |||||||||||
Interest income | $ 481.4 | $ 503.4 | $ 515.5 | $ 516.5 | $ 492 | $ 473.6 | $ 473.6 | $ 451.2 | $ 2,016.8 | $ 1,890.4 | $ 1,835.6 |
Interest expense | 229.8 | 243.9 | 242.7 | 235.6 | 215.5 | 213.9 | 205.2 | 180.5 | 952 | 815.1 | 717.7 |
Provision for credit losses | 22.6 | 26.6 | 28.6 | 33 | 31.2 | 38.1 | 32.9 | 68.8 | 110.8 | 171 | 114.6 |
Rental income on operating leases | 215.3 | 211.7 | 213 | 217.7 | 229.8 | 264.3 | 261.3 | 253.6 | 857.7 | 1,009 | 1,007.4 |
Other non-interest income | 111.3 | 101 | 106.1 | 96.8 | 47.5 | 86.2 | 135.4 | 104.7 | 415.2 | 373.8 | 364.2 |
Depreciation on operating lease equipment | 76.4 | 76 | 76.8 | 79.4 | 79.5 | 78 | 77.2 | 76.4 | 308.6 | 311.1 | 296.3 |
Maintenance and other operating lease expenses | 40.7 | 41.9 | 48.3 | 49.8 | 52.9 | 56.6 | 63.5 | 57.4 | 180.7 | 230.4 | 222.9 |
Operating expenses | 258.5 | 310.8 | 267.8 | 276.1 | 257.9 | 263.3 | 267.5 | 281.3 | 1,113.2 | 1,070 | 1,188.5 |
Loss on debt extinguishments and deposit redemptions | 0.1 | 0.1 | 0.2 | 0.1 | 15.7 | 3.5 | 19.3 | 0.1 | 0.5 | 38.6 | 220 |
Provision (benefit) for income taxes | 49.3 | (26) | 33.4 | 37.8 | 24.9 | 41.3 | 57.4 | 41.3 | 94.5 | 164.9 | (67.8) |
Income (loss) from discontinued operations, net of taxes | 0.8 | (0.3) | 0.1 | 2.1 | (20.5) | (6.7) | 0.5 | (25) | 208.8 | ||
Net income | 130.6 | 142.8 | 137.6 | 118.9 | 91.8 | 131.5 | 126.8 | 97 | 529.9 | 447.1 | 468.2 |
Net income applicable to common shareholders | 121.1 | 142.8 | 128.2 | 118.9 | 82.3 | 131.5 | 117.4 | 97 | 511 | 428.2 | 458.4 |
Income from continuing operations applicable to common shareholders | $ 121.1 | $ 142.8 | $ 127.4 | $ 119.2 | $ 82.2 | $ 129.4 | $ 137.9 | $ 103.7 | $ 510.5 | $ 453.2 | $ 249.6 |
Net income per diluted share | $ 1.27 | $ 1.50 | $ 1.33 | $ 1.18 | $ 0.78 | $ 1.15 | $ 0.94 | $ 0.74 | $ 5.27 | $ 3.61 | $ 2.80 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - Subsequent Event - MOB $ / shares in Units, shares in Millions, $ in Millions | Jan. 01, 2020USD ($)$ / sharesshares |
Subsequent Event [Line Items] | |
Total consideration paid | $ 1,000 |
Consideration paid in cash | 850 |
Total assets acquired | 8,400 |
Total deposits assumed | $ 7,000 |
Common Stock | |
Subsequent Event [Line Items] | |
Business combination, number of shares issued | shares | 3.1 |
Business combination, value of shares issued | $ 141 |
Business combination, fixed price of shares issued per share | $ / shares | $ 48.47 |