Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 05, 2021 | Jun. 30, 2020 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
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 | 98,707,907 | ||
Entity Public Float | $ 2,027,584,301 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation flag | true | ||
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, 2020 | Dec. 31, 2019 | |
Assets | |||
Cash and due from banks, including restricted balances of $41.7 at December 31, 2020 and $875.2 at December 31, 2019 (see Note 10 for amounts pledged) | $ 174.6 | $ 990.1 | |
Interest bearing cash (see Note 10 for amounts pledged) | 3,837.1 | 1,695.5 | |
Securities purchased under agreement to resell | 150 | 950 | |
Investment securities, including securities carried at fair value with changes recorded in net income of $0.0 at December 31, 2020 and $47.2 at December 31, 2019 (see Notes 6 and 10 for amounts pledged) | 6,889 | 6,276.8 | |
Assets held for sale | 721.2 | 32.1 | |
Loans (see Note 10 for amounts pledged) | 36,144.6 | 30,998.9 | |
Allowance for loan losses | (1,063.8) | (482.6) | |
Total loans, net of allowance for loan losses | 35,080.8 | 30,516.3 | |
Operating lease equipment, net (see Note 10 for amounts pledged) | [1] | 7,836.6 | 7,319.7 |
Bank-owned life insurance | 1,168.8 | 1,043.2 | |
Goodwill | 369.9 | ||
Other assets, including $431.6 at December 31, 2020 and $190.7 at December 31, 2019, at fair value | 2,248.5 | 1,639.2 | |
Total Assets | 58,106.6 | 50,832.8 | |
Liabilities | |||
Deposits | 43,071.6 | 35,139.5 | |
Credit balances of factoring clients | 1,719.9 | 1,176.2 | |
Other liabilities, including $79.2 at December 31, 2020 and $100.8 at December 31, 2019, at fair value | 1,754.9 | 1,704.7 | |
Borrowings, including $500.0 at December 31, 2020 and $14.3 at December 31, 2019 contractually due within twelve months | 5,837.3 | 6,473.4 | |
Total Liabilities | 52,383.7 | 44,493.8 | |
Stockholders’ Equity | |||
Preferred Stock: $0.01 par value, 100,000,000 shares authorized, 8,325,000 shares issued and outstanding at December 31, 2020 and December 31, 2019 | 525 | 525 | |
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 | 6,892 | 6,853.7 | |
Retained earnings | 1,428.3 | 2,307.6 | |
Accumulated other comprehensive income (loss) | 35.7 | (52.1) | |
Treasury stock: 64,700,466 shares at December 31, 2020 and 67,445,723 shares at December 31, 2019 at cost | (3,159.7) | (3,296.8) | |
Total Common Stockholders’ Equity | 5,197.9 | 5,814 | |
Total Equity | 5,722.9 | 6,339 | |
Total Liabilities and Equity | $ 58,106.6 | $ 50,832.8 | |
[1] | Includes off-lease Rail equipment of $1,110.2 million and $519.1 million at December 31, 2020 and 2019, respectively. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Cash and interest bearing deposits, restricted | $ 41.7 | $ 875.2 |
Securities carried at fair value with changes recorded in net income | 0 | 47.2 |
Other assets at fair value | 431.6 | 190.7 |
Other liabilities at fair value | 79.2 | 100.8 |
Borrowings contractually due within twelve months | $ 500 | $ 14.3 |
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 | 8,325,000 |
Preferred Stock, shares outstanding (in shares) | 8,325,000 | 8,325,000 |
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) | 163,309,861 | 162,188,287 |
Common Stock, shares outstanding (in shares) | 98,609,395 | 94,742,564 |
Treasury stock, shares at cost (in shares) | 64,700,466 | 67,445,723 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Interest income | ||||
Interest and fees on loans | $ 1,667.8 | $ 1,783.3 | $ 1,671.8 | |
Other interest and dividends | 131.2 | 233.5 | 218.6 | |
Interest income | 1,799 | 2,016.8 | 1,890.4 | |
Interest expense | ||||
Interest on deposits | 475.8 | 664.9 | 460.4 | |
Interest on borrowings | 257.5 | 287.1 | 354.7 | |
Interest expense | 733.3 | 952 | 815.1 | |
Net interest revenue | 1,065.7 | 1,064.8 | 1,075.3 | |
Provision for credit losses | 800.3 | 110.8 | 171 | |
Net interest revenue, after credit provision | 265.4 | 954 | 904.3 | |
Non-interest income | ||||
Rental income on operating leases | 810.9 | 857.7 | 1,009 | |
Other non-interest income | 540.5 | 415.2 | 373.8 | |
Total non-interest income | 1,351.4 | 1,272.9 | 1,382.8 | |
Total revenue, net of interest expense and credit provision | 1,616.8 | 2,226.9 | 2,287.1 | |
Non-interest expenses | ||||
Depreciation on operating lease equipment | 327.4 | 308.6 | 311.1 | |
Maintenance and other operating lease expenses | 212.5 | 180.7 | 230.4 | |
Operating expenses | 1,309.9 | 1,113.2 | 1,070 | |
Goodwill impairment | 485.1 | |||
(Gain) loss on debt extinguishment and deposit redemption | (14.7) | 0.5 | 38.6 | |
Total non-interest expenses | 2,320.2 | 1,603 | 1,650.1 | |
(Loss) income from continuing operations before (benefit) provision for income taxes | (703.4) | 623.9 | 637 | |
(Benefit) provision for income taxes | (88.1) | 94.5 | 164.9 | |
(Loss) income from continuing operations | (615.3) | 529.4 | 472.1 | |
Discontinued operations | ||||
Income (loss) from discontinued operations, net of taxes | 0.5 | (8.7) | ||
Gain (loss) on sale of discontinued operations, net of taxes | (16.3) | |||
Total income (loss) from discontinued operations, net of taxes | 0.5 | (25) | ||
Net (loss) income | (615.3) | 529.9 | 447.1 | |
Preferred stock dividends | 31.1 | 18.9 | 18.9 | |
Net (loss) income available to common shareholders | (646.4) | 511 | 428.2 | |
(Loss) income from continuing operations available to common shareholders | $ (646.4) | $ 510.5 | $ 453.2 | |
Basic (loss) income per common share | ||||
(Loss) income from continuing operations | $ (6.57) | $ 5.29 | $ 3.85 | |
Income (loss) from discontinued operations | 0.01 | (0.21) | ||
Basic (loss) income per share | (6.57) | 5.30 | 3.64 | |
Diluted (loss) income per common share | ||||
(Loss) income from continuing operations | [1] | (6.57) | 5.27 | 3.82 |
Income (loss) from discontinued operations | 0 | 0 | (0.21) | |
Diluted (loss) income per share | [1] | $ (6.57) | $ 5.27 | $ 3.61 |
Average number of common shares (thousands) | ||||
Basic | 98,405 | 96,503 | 117,653 | |
Diluted | 98,405 | 96,921 | 118,777 | |
[1] | Due to the net loss for the year ended December 31, 2020, the diluted earnings per share calculation excluded an insignificant amount of weighted average restricted shares, performance shares, and options, as they were anti-dilutive. The basic weighted average shares outstanding and net loss for the year ended December 31, 2020 were utilized for the diluted earnings per share calculation. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract] | |||
Net (loss) income | $ (615.3) | $ 529.9 | $ 447.1 |
Other comprehensive income (loss), net of tax | |||
Foreign currency translation adjustments | 11.8 | (16.2) | |
Net unrealized gains (losses) on available for sale securities | 81.3 | 96.8 | (59.1) |
Changes in benefit plans net gains and prior service (cost)/credit | 6.5 | 17.6 | (16) |
Other comprehensive income (loss), net of tax | 87.8 | 126.2 | (91.3) |
Comprehensive (loss) income | $ (527.5) | $ 656.1 | $ 355.8 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Preferred Stock | Common Stock | Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Cumulative Effect, Period of Adoption, Adjustment | Treasury Stock, at Cost |
Beginning balance at Dec. 31, 2017 | $ 7,320 | $ 0.2 | $ 325 | $ 2.1 | $ 8,798.1 | $ 1,906.5 | $ 0.7 | $ (86.5) | $ (0.5) | $ (3,625.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accounting Standards Update Extensible List | cit:AccountingStandardsUpdate201601201616And201802Member | cit:AccountingStandardsUpdate201601201616And201802Member | cit:AccountingStandardsUpdate201601201616And201802Member | |||||||
Net (loss) income | 447.1 | 447.1 | ||||||||
Other comprehensive income (loss), 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 (loss) income | 529.9 | 529.9 | ||||||||
Other comprehensive income (loss), net of tax | 126.2 | 126.2 | ||||||||
Dividends paid | (146.7) | (146.7) | ||||||||
Share repurchases | (340.9) | (340.9) | ||||||||
Issuance of preferred stock | 195.1 | 200 | (4.9) | |||||||
Amortization of restricted stock, stock option and performance shares expenses | 25.8 | 44.8 | (19) | |||||||
Employee stock purchase plan | 3 | 3 | ||||||||
Ending balance at Dec. 31, 2019 | $ 6,339 | $ (82.4) | 525 | 1.6 | 6,853.7 | 2,307.6 | $ (82.4) | (52.1) | (3,296.8) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | |||||||
Net (loss) income | $ (615.3) | (615.3) | ||||||||
Other comprehensive income (loss), net of tax | 87.8 | 87.8 | ||||||||
Dividends paid | (171.5) | (171.5) | ||||||||
Issuance of common stock - acquisition | 141.2 | (10.1) | 151.3 | |||||||
Amortization of restricted stock, stock option and performance shares expenses | 19.9 | 34.1 | (14.2) | |||||||
Employee stock purchase plan | 4.2 | 4.2 | ||||||||
Ending balance at Dec. 31, 2020 | $ 5,722.9 | $ 525 | $ 1.6 | $ 6,892 | $ 1,428.3 | $ 35.7 | $ (3,159.7) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Dividends paid per common share | $ 1.40 | $ 1.30 | $ 0.82 |
Dividends paid per preferred share | $ 58 | $ 58 | |
Series A Preferred Stock | |||
Dividends paid per preferred share | 58 | ||
Series B Preferred Stock | |||
Dividends paid per preferred share | $ 1.53 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows from Operations | |||
Net (loss) income | $ (615,300) | $ 529,900 | $ 447,100 |
Adjustments to reconcile net (loss) income to net cash flows from operations: | |||
Provision for credit losses | 800,300 | 110,800 | 171,000 |
Depreciation on operating lease equipment | 327,400 | 308,600 | 311,100 |
Amortization of stock compensation expenses | 34,100 | 44,800 | 38,900 |
Net gain on asset sales and impairments on assets held for sale | (209,700) | (71,600) | (128,600) |
(Gain) loss on debt extinguishment and deposit redemption | (14,700) | 500 | 38,600 |
(Benefit) provision for deferred income taxes | (95,800) | 115,100 | 118,300 |
(Increase) decrease in loans held for sale | (15,300) | 33,900 | (57,400) |
Goodwill impairment | 485,100 | ||
(Increase) decrease in other assets | (266,600) | (303,800) | 100 |
(Decrease) increase in other liabilities | (32,100) | 80,800 | (143,700) |
Other operating activities | 83,000 | 78,200 | 187,100 |
Net cash flows provided by operations | 480,400 | 927,200 | 982,500 |
Cash Flows from Investing Activities | |||
Changes in loans, net | 478,200 | (1,598,300) | (1,883,700) |
Purchases of investment securities and securities purchased under agreement to resell | (5,751,300) | (12,953,800) | (3,020,900) |
Proceeds from sales and maturities of investment securities and securities purchased under agreement to resell | 7,645,200 | 12,543,200 | 2,882,300 |
Proceeds from asset and receivable sales | 688,300 | 1,009,500 | 1,548,600 |
Purchases of assets to be leased and other equipment | (1,018,600) | (807,900) | (655,600) |
Proceeds from sale of OREO, net of repurchases | 13,700 | 37,200 | 64,500 |
Purchase of bank owned life insurance | (100,000) | (200,000) | |
Acquisition, net of cash received | (720,100) | ||
Other investing activities | (46,300) | 22,900 | 44,000 |
Net cash flows provided by (used in) investing activities | 1,189,100 | (1,947,200) | 43,800 |
Cash Flows from Financing Activities | |||
Proceeds from the issuance of term debt and FHLB advances | 2,207,500 | 2,694,300 | 4,608,900 |
Repayments of term debt, FHLB advances, and net settlements | (3,129,100) | (4,365,100) | (5,395,900) |
Net increase in deposits | 947,200 | 3,898,100 | 1,679,600 |
Repurchase of common stock | (340,900) | (1,626,700) | |
Net proceeds from issuance of preferred stock | 195,100 | ||
Dividends paid | (171,500) | (146,700) | (115,900) |
Other financing activities | (199,800) | (26,700) | (92,100) |
Net cash flows (used in) provided by financing activities | (345,700) | 1,908,100 | (942,100) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 2,300 | 1,900 | (15,000) |
Increase (decrease) in cash, cash equivalents and restricted cash | 1,326,100 | 890,000 | 69,200 |
Cash, cash equivalents and restricted cash beginning of period | 2,685,600 | 1,795,600 | 1,726,400 |
Cash, cash equivalents and restricted cash end of period | 4,011,700 | 2,685,600 | 1,795,600 |
Supplementary Cash Flow Disclosures | |||
Interest paid | (725,500) | (946,000) | (809,800) |
Federal, foreign, state and local income taxes refunded (paid), net | 66,400 | 41,300 | (25,200) |
Supplementary Non Cash Flow Disclosure | |||
Transfer of assets from held for investment to held for sale | 1,068,200 | 480,500 | 397,900 |
Transfer of assets from held for sale to held for investment | 26,500 | 25,500 | 64,800 |
Transfers of assets to OREO | 300 | 21,400 | 39,400 |
Commitments extended during the period on affordable housing investment credits | 106,100 | $ 80,500 | 64,100 |
Issuance of common stock - acquisition | $ 141,200 | ||
NACCO | |||
Cash Flows from Investing Activities | |||
Proceeds from sale of business | $ 1,064,600 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Reconciliation of cash, cash equivalents and restricted cash | |||
Cash and due from banks, including restricted balances of $41.7, $875.2, and $25.5 at December 31, 2020, 2019, and 2018, respectively | $ 174.6 | $ 990.1 | $ 198.8 |
Interest-bearing cash, including restricted balances of $2.6, $2.2 and $2.5 at December 31, 2020, 2019 and 2018, respectively | 3,837.1 | 1,695.5 | 1,596.8 |
Total cash, cash equivalents, and restricted cash shown in the Statement of Cash Flows | 4,011.7 | 2,685.6 | 1,795.6 |
Cash and due from banks, restricted | 41.7 | 875.2 | 25.5 |
Restricted interest-bearing deposits | $ 2.6 | $ 2.2 | $ 2.5 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 — BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CIT Group Inc. is bank holding company ("BHC") and a financial holding company ("FHC"). CIT Group Inc., together with its subsidiaries (collectively "we", "our", "CIT" or the "Company"), 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 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 a regional branch network of 80 branches and its online bank. CIT Bank is regulated by the Office of the Comptroller of the Currency of the U.S. Department of the Treasury ("OCC"). In addition, CIT Bank, as an insured depository institution, is supervised by the Federal Deposit Insurance Corporation (“FDIC”). 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 credit losses (“ACL”), 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"), if any. 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. Announcement of Definitive Merger Agreement On October 16, 2020, First Citizens BancShares, Inc. ("First Citizens"), the parent company of First-Citizens Bank & Trust Company, and CIT, the parent company of CIT Bank, N.A., jointly announced that they have entered into a definitive agreement under which the companies will combine in an all-stock merger. Acquisition 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 (the “MOB Acquisition”). The results for 2020 include the activity of MOB whereas no MOB activity is included in the results for 2019. See further discussion in Note 2 – Acquisition and Discontinued Operations Discontinued Operations There were no discontinued operations as of December 31, 2020 and 2019. Income (loss) from discontinued operations reflects the activities of the Business Air and Financial Freedom businesses for the years ended December 31, 2019 and 2018. See further discussion in Note 2 – Acquisition and Discontinued Operations The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and Interagency Statement On March 27, 2020, the CARES Act was signed into law. Section 4013 of the CARES Act gives financial institutions temporary relief from the accounting and disclosure requirements related to troubled debt restructurings (“TDRs”) under ASC 310-40 and past due and non-accrual reporting in certain situations. Under the CARES Act, banks may elect to deem that loan modifications do not result in TDRs if they are: (1) related to the novel coronavirus disease (“COVID-19”) pandemic; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the national emergency declared by the President under the National Emergencies Act with respect to COVID-19 (the “National Emergency”) or (B) December 31, 2020. With respect to past due and non-accrual loans, the CARES Act provides that financial institutions are not expected to designate loans with payment accommodations granted due to COVID-19 as past due or non-accrual if they were current on the date used to determine borrower’s delinquency status for the purpose of providing the deferment. On December 27, 2020 the Consolidated Appropriations Act, 2021 was signed into law. It provides additional COVID-19 focused relief and extends certain provisions of the CARES Act. The termination of the temporary relief from TDR accounting under the CARES Act was extended to the earlier of (1) 60 days after the national emergency termination date or (2) January 1, 2022. Additionally, on April 7, 2020, a group of federal and state government banking agencies issued an Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised) (the “Interagency Statement”) that offers some practical expedients for evaluating whether loan modifications that occur in response to the COVID-19 pandemic are TDRs. The Interagency Statement indicates that a lender can conclude that a borrower is not experiencing financial difficulty if either (1) short-term (e.g., six months or less) modifications are made in response to COVID-19, such as payment deferrals, fee waivers , extensions of repayment terms, or other delays in payment that are insignificant related to loans in which the borrower is less than 30 days past due on its contractual payments at the time a modification program is implemented, or (2) the modification or deferral program is related to COVID-19 and mandated by the federal government or a state government (e.g., a state program that requires all institutions within that state to suspend mortgage payments for a specified period). The Interagency Statement interprets , but does not suspend, ASC 310-40, as any loan modification that meets either of these practical expedients would not automatically be considered a TDR because the borrower is presumed not to be experiencing financial difficulty at the time of the loan modification. As provided for under the CARES Act, a financial institution may account for an eligible loan modification either under Section 4013 or in accordance with ASC Subtopic 310-40. The Interagency Statement provides that with respect to loans not otherwise reportable as past due, financial institutions are not expected to designate loans with deferrals granted due to COVID-19 as past due because of the deferral, and that “each financial institution should refer to the applicable regulatory reporting instructions, as well as its internal accounting policies, to determine if loans to stressed borrowers should be reported as non-accrual assets in regulatory reports.” However, during the short- term arrangements discussed in the Interagency Statement , these current loans generally should not be reported as non-accrual. The Interagency Statement did not provide a specific end date regarding COVID-19 related TDRs as long as the loan meets the criteria for eligibility. CIT applies the TDR provisions of the CARES Act on a product-type basis, or on a loan-by-loan basis, for eligible loan modifications. For eligible loans for which the CARES Act is not applied, CIT follows the applicable guidance of the Interagency Statement. For payment deferrals granted to borrowers impacted by COVID-19, CIT has elected to continue to recognize interest income (at a modified effective rate) subject to consideration of whether the loan should be placed on non-accrual status. In addition, CIT has established a credit loss reserve for the estimated amount of accrued interest that will not be recovered for COVID-19 loans, as further detailed in the Allowance Methodology section below. After the initial payment deferral period granted due to COVID-19, on a case by case basis where requested, borrowers may be offered an additional deferral of up to 90 days pursuant to the CARES Act or Interagency Statement guidance outlined above. After the deferral period, CIT will apply its credit policies, and amounts deferred must be repaid based on modified terms, including adding the unpaid amounts to the end of the contract term, spread throughout the remaining term, or other arrangements made on a case by case basis. Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic On April 10, 2020, the FASB Staff issued a question-and-answer document (the “Lease Concessions Q&A”) on Topic 842: Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic. The Lease Concessions Q&A provides that entities may elect to apply or not apply the lease modification guidance in ASC 842, Leases, for lease concessions provided by lessors as a result of the COVID-19 pandemic. This election is available for concessions that result in the total payments required by the modified contract being substantially the same as or less than total payments required by the original contract. CIT has elected not to apply the lease modification guidance in ASC 842 for such lease concessions as permitted by the Lease Concessions Q&A. We account for these lease concessions prospectively recognizing income on a straight-line basis for operating leases and a modified effective rate for finance leases. 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 are referred to as loans and leases. 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 to HFI , the discount is accreted into earnings as an increase to interest income over the life of the loan using the effective interest method and subject to CIT’s allowance for credit loss review. 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. ASU 2016-13 Financial Instruments – Credit Losses (Topic 326) On January 1, 2020, CIT adopted ASU 2016-13 Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ASU 2016-13 was adopted using a modified-retrospective approach with a cumulative-effect adjustment to the opening balance of retained earnings. As of January 1, 2020, retained earnings was decreased by $82.4 million due to the adoption of this new standard. Comparative prior period financial information was not adjusted and will continue to be reported under previously applicable accounting guidance. Allowance Methodology Topic 326 requires estimating and recognizing expected credit losses over the remaining expected life for applicable financial assets. However, the standard does not prescribe a specific credit loss methodology, requiring CIT to use judgment in determining the relevant information and estimation methods that are appropriate, which must be applied consistently over time. Determining an appropriate ACL requires significant judgment that may change based on management’s ongoing process for analyzing the credit quality of the Company’s loan portfolio. The amounts outstanding on term loans, consumer loans, revolving credit facilities and finance leases are referred to as loans. CIT estimates the ACL for financial assets with similar risk characteristics on a collective basis. A financial asset is measured individually only if it does not share similar risk characteristics with other financial assets. The ACL for AFS debt securities is estimated by using the discounted cash flow method, which reflects the differences between the amortized cost basis and the present value of the principal and interest cash flows expected to be collected. The ACL for loans (bifurcated between commercial and consumer loans) is estimated by using a method other than a discounted cash flow method, and therefore reflects CIT’s expected credit losses on the amortized cost basis of the financial assets as of the reporting date. The estimate of ACL is based on relevant information about past events, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amounts. CIT utilizes a forecast that extends over the contractual term of the loans, and which CIT considers reasonable and supportable for the life of the loan. This forecast uses historical information and takes into consideration current conditions and economic expectations before converging to a long-run trend. The ACL is a valuation account that is deducted from the amortized cost basis of the financial asset to present the net amount expected to be collected on the financial asset. At the reporting date, CIT records an ACL on the amortized cost of financial assets, including purchased financial assets. Any changes in the current estimate of the ACL from the estimated ACL previously recorded are reported in net income as provision for credit losses expense or reversal of provision for credit losses. Amortized cost basis is defined as the amount at which a loan or investment is originated or acquired, adjusted for applicable accrued interest, accretion, or amortization of premium, discount, and net of deferred fees or costs, collection of cash, write-offs, foreign exchange, and fair value hedge accounting adjustments. Accrued interest is generally separately reported from the loan’s amortized cost basis as accrued interest receivable within Other Assets. Accrued interest receivable that is excluded from the amortized cost basis is disclosed in Note 3 – Loans by CECL, the Company has elected not to measure an ACL for accrued interest receivable. Rather, CIT’s general policy is to reverse all previously accrued but uncollected interest with a charge against interest income when an account is placed on non-accrual status (for commercial loans) or is contractually delinquent for 90 days or more (for consumer mortgages and small ticket commercial loans). However, for loan deferments granted in response to the COVID-19 pandemic with no contractual payments due during the deferral period, the loans will generally not be reported as past due or placed on non-accrual or written off during the period of the deferral. Given CIT’s election to accrue interest during the payment deferral period for loan modifications made in response to the COVID-19 pandemic, CIT has established a reserve against the accrued interest receivable for loans for which a payment deferral has been granted (via a charge to the provision for credit losses) for amounts deemed potentially unrecoverable. After the payment deferment period, CIT may require the immediate payment of deferred amounts, provide for the payment of deferred amounts over time, provide for deferred amounts to be paid at the end of the original term, or otherwise modify or restructure the loan. Where the deferred interest is added to the loan, the accrued interest will be recorded as part of the loan balance. Additionally, the Company applies qualitative adjustments that continued to affect the allowance for the collectively evaluated loans. Qualitative reserve adjustments are applied for items not directly captured in the quantitative component of the reserve and included items such as macroeconomic uncertainty, risk to specific industries or portfolio segments, potential changes in collateral value and other factors. The Company’s approach to macroeconomic uncertainty utilizes weighting of the differences between the forecasted baseline and upside and downside scenarios. An ACL is not recognized for receivables arising from operating leases as these receivables are not within the scope of Topic 326. The accrual of rental income on operating leases is suspended when the collection of substantially all rental payments is no longer probable and rental income for such leases is recognized when cash payments are received. In the period we conclude that collection of rental payments is no longer probable, accrued but uncollected rental revenue, including operating lease receivables resulting from payment deferrals made in response to COVID-19, is reversed against rental income. Commercial Loans With respect to commercial loans, the Company monitors various factors, including expected and historical losses and levels of, and trends in, past due loans, non-performing assets, collateral values and economic conditions. These risk factors are considered when commercial loans are graded according to the Company’s internal rating system with respect to probability of default (“PD”) and loss given default (“LGD” or “severity”). The PD and severity are derived through historical observations of default and subsequent losses within each risk grading. Credit quality indicators used in determining risk ratings are monitored and updated at least annually. CECL models are employed to develop a lifetime PD which is used to establish the ACL for financial assets that are measured on a collective basis. These models utilize external and internal historical loan performance data together with historical macroeconomic data to identify correlations and select macro variables such as unemployment rate and gross domestic product growth rate that would be appropriate predictors of loan losses in the future to determine the ACL. See Note 3 – Loans Consumer Loans With respect to consumer loans, the Company monitors loan performance metrics, including delinquency and non-accrual status, and credit quality risk indicators such as the loan-to-value ratio (“LTV”) of the underlying collateral and the credit score developed by the Fair Isaac Corporation (the “FICO score”) of borrowers excluding government insured loans (which are discussed in the Zero Loss Assumption section below). LTV refers to the ratio comparing the loan's unpaid principal balance to the property's current collateral value as an indicator of the potential loss severity in the event of default. The borrower’s current FICO score, which is obtained quarterly is a secondary credit quality indicator to evaluate borrower’s credit payment history. For consumer loans that are evaluated collectively, ACL and cash flow projections are developed with models that utilize historical loan performance data together with historical macroeconomic data to identify correlations and select macro variables that would be appropriate in estimating future loan losses. The macroeconomic variables considered include measurements of the regional economy, home price changes and unemployment rates, which may have an impact on credit quality. Refer to Note 3 – Loans Purchased Credit Deteriorated (“PCD”) Financial Assets PCD assets are acquired individual financial assets (or acquired groups of financial assets with similar risk characteristics) that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by an acquirer’s assessment. A single asset can be deemed a PCD asset, or a group of assets acquired together that have similar risk characteristics can be classified as PCD assets. PCD assets are recorded at their purchase price plus the ACL expected at the time of acquisition, or “gross up” of the amortized cost basis. Day 1 ACL is established for these loans without a statement of operations effect. Any changes in the current estimate of the ACL after acquisition from the estimated ACL previously recorded are reported in net income as provision for credit losses expense or reversal of provision for credit losses in subsequent periods as they arise. A purchased financial asset that does not qualify as a PCD asset is accounted for similarly to originated assets, whereby an ACL is recognized with a corresponding increase to the provision for credit losses. Determining which assets meet the PCD definition requires management’s judgment as there is no definition provided for “more-than-insignificant deterioration in credit quality”. Credit deterioration attributes such as credit risk ratings, FICO score, delinquency status and other standard indicators (e.g., TDR, non-accrual status, charge-offs and bankruptcy) are used to classify PCD assets either at the level of the individual asset or on the basis of a group or pool in an asset acquisition or business combination. In terms of CIT’s former purchased credit-impaired loans (“PCI”) under ASC 310-30, the Company elected to transition from pool level to loan level by using the undiscounted expected cash flows for each asset within the pool to allocate the respective non-credit discount pursuant to ASC 326-20. PCI assets became PCD assets via the re-characterization of existing non-accretable discount as ACL using the undiscounted contractual cash flows method at the loan level, with no equity impact at transition. In transitioning from PCI to PCD, accrued interest was recognized separately from the loan balance because of the Company’s accounting policy election not to measure an ACL on accrued interest receivables within other assets. Zero Loss Assumption Measurement of expected credit losses is not required for a financial asset or group of financial assets if historical credit loss information adjusted for current conditions and reasonable and supportable forecasts results in an expectation of nonpayment of the amortized cost basis of zero. Government-insured loans (e.g., Federal Housing Administration (“FHA”)), U.S. treasury securities, U.S. government agency issued securities and certain commercial agency securities are within the scope of the zero loss assumption under CECL given these securities have the highest credit ratings, a long history of no credit losses, and are guaranteed by high credit quality entities. MOB Acquisition In connection with the MOB Acquisition, the Company incorporated MOB’s financial assets into CIT’s CECL framework. CIT was required to record an allowance for non-PCD assets with a corresponding increase to the provision for credit losses. For acquired PCD loans, an allowance was 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 has been previously written-off, or would be subject to write-off under CIT’s charge-off policy, the CECL allowance included as part of the grossed-up loan balance at acquisition was immediately written-off, resulting in a zero period-end allowance balance and no impact on the ACL rollforward. Refer to Note 2 Acquisition and Discontinued Operations Other Allowance Factors With respect to loans transferred from held for investment (“HFI”) to assets held for sale (“AHFS”), prior to transfer to AHFS a write-down of the amortized cost basis is recognized with a charge to the provision for credit losses, to the extent the carrying value exceeds the fair value and the difference relates to credit quality. After the asset is transferred to AHFS, a valuation allowance is recognized in other income to the extent the amortized cost basis exceeds fair value, and changes in valuation are included in the determination of net income of the period in which the change occurs. With respect to loans transferred from AHFS to HFI, any valuation allowance previously recorded on the AHFS is reversed through earnings prior to the transfer. CIT then reclassifies the loan into HFI at its amortized cost basis (which is reduced by any previous charge-offs but excludes any valuation allowance). After transferring back into HFI, the loan is evaluated in accordance with CIT’s normal credit review policies with any necessary ACL recognized with a corresponding increase to the provision for credit losses. An approach similar to the ACL process is utilized to calculate the allowance for off-balance sheet credit exposures related to unfunded loan commitments, letters of credit and deferred purchase agreements (“DPAs”). The allowance for off-balance-sheet credit exposures is maintained to absorb estimated credit losses related to these facilities and includes an assumption of the likelihood that funding will occur prior to an obligor defaulting. The allowance for off-balance-sheet credit exposures is recorded as a liability within other liabilities on the Consolidated Balance Sheets. Net adjustments to the allowance for off-balance-sheet credit exposures are included in the provision for credit losses. A loan or lease is determined to be collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. Collateral dependent loans and leases are recorded at their amortized cost basis. An ACL is established for an excess of amortized cost of collateral-dependent loans or leases over the fair value of the underlying collateral (less costs to sell, if applicable) at the reporting date. Collateral-dependent loans and leases are identified on a quarterly basis. The underlying collateral is primarily equipment and real estate. CECL requires that entities do not extend the contractual term for expected extensions, renewals, and modifications unless it has a reasonable expectation at the reporting date that it will execute a TDR with the borrower. In addition, extension or renewal options (excluding those that are accounted for as a derivative) that are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the entity are considered when determining the contractual term of a loan. Under CIT’s allowance methodology, CIT defines a TDR as reasonably expected when the Company has identified and approved a TDR for commercial loans and when CIT as a Lender has approved the terms of a trial modification for a borrower experiencing financial difficulty (typically the beginning of the three- to four-month Accounting for Purchased Credit-Impaired Loans Prior to the Adoption of the CECL Guidance Purchased credit-impaired loans (“PCI loans”) were determined as of the date of purchase to have evidence of credit quality deterioration since origination, which made it probable that the Company would be unable to collect all contractually required payments (principal and interest). Evidence of credit quality deterioration as of the purchase date included past due status, recent borrower credit scores, credit rating (probability of obligor default) and recent loan-to-value ratios. Commercial PCI loans were accounted for as individual loans. Conversely, consumer PCI loans with similar common risk characteristics were pooled together for accounting purposes at the cohort level. Common risk characteristics consisted 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 was 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 were initially recorded at estimated fair value, which was 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 believed a market participant would consider. The Company estimated the cash flows expected to be collected at acquisition using internal credit risk and prepayment risk models that incorporated 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 included accretable and non-accretable components. The accretable yield was 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 was 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 |
Acquisition and Discontinued Op
Acquisition and Discontinued Operations | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
ACQUISITION AND DISCONTINUED OPERATIONS | NOTE 2 — ACQUISITION AND DISCONTINUED OPERATIONS ACQUISITION On January 1, 2020, CIT Bank acquired MOB, the savings bank subsidiary of Mutual of Omaha Insurance Company and OFHI, for approximately $1 billion in exchange for 100% of all outstanding shares of MOB common stock. The original consideration was comprised of approximately $850 million in cash and approximately 3.1 million shares of CIT Group Inc. common stock (valued at approximately $141 million based on the closing market price on December 31, 2019, the last trading price before the acquisition). The acquisition enhances CIT’s deposit and commercial banking capabilities by adding a new channel of deposits related to homeowners’ associations (“HOA”) and enhances CIT’s middle-market commercial banking business through the addition of relationship banking teams and expanded product and technology solutions. The acquisition was accounted for as a business combination. Assets acquired totaled approximately $8.6 billion, including $115.2 million of goodwill and $102.6 million of intangible assets and included $7.6 billion of assumed liabilities and 25 bank branches. The assets acquired, liabilities assumed and consideration exchanged were recorded at their preliminary estimated fair value on the acquisition date. Consideration and Net Assets Acquired (dollars in millions) Original Purchase Measurement Period Adjusted Purchase Price Adjustment Price Purchase price $ 993.1 $ (7.0 ) $ 986.1 Recognized amounts of identifiable assets acquired and liabilities assumed, at fair value Cash and interest-bearing cash 123.1 - 123.1 Investment securities 1,717.6 - 1,717.6 Loans 6,297.9 - 6,297.9 Other assets 199.5 - 199.5 Total Assets $ 8,338.1 $ - $ 8,338.1 Deposits 6,992.9 - 6,992.9 Securities sold under agreements to repurchase 193.2 - 193.2 Other liabilities 93.1 0.6 93.7 Borrowings 290.0 - 290.0 Total liabilities $ 7,569.2 $ 0.6 $ 7,569.8 Total fair value of identifiable net assets 768.9 (0.6 ) 768.3 Intangible assets 102.6 - 102.6 Goodwill $ 121.6 $ (6.4 ) $ 115.2 The determination of estimated fair values required management to make certain estimates about discount rates, future expected cash flows (that may reflect collateral values), market conditions at the time of the acquisition and other future events that are highly subjective in nature and may require adjustments. Subsequent to the acquisition, management continued to review information relating to events or circumstances existing at the acquisition date. This review resulted in adjustments to the acquisition date valuation amounts which decreased the goodwill balance to $115.2 million. This goodwill decrease was primarily related to the purchase price true up adjustment. The remaining goodwill balance was written off as part of the Company’s annual goodwill impairment assessment. See Note 25 – Goodwill and Intangible Assets Cash and interest-bearing cash The Company acquired cash and interest-bearing cash of $123.1 million, which includes cash on deposit with the FRB and other banks, deposits in transit, vault cash and highly liquid money market investments with original maturities of three months or less. Given the short-term nature and insignificant risk of changes in value because of changes in interest rates, the carrying amount of the acquired cash and interest-bearing cash was determined to equal the fair value. Investment securities The Company acquired a portfolio of debt securities and other equity investments valued at approximately $1.7 billion as of the acquisition date. The debt securities portfolio contains U.S. Government guaranteed / sponsored agency commercial and residential mortgage-backed securities, private label asset-backed securities and state and municipal bonds. These securities are classified as AFS debt securities. The acquisition date fair value of the securities was based on third-party dealer quotes which reflect exit prices pursuant to the guidance on fair value measurement. Loans The acquired loan portfolio, with an aggregate unpaid principal balance (“UPB”) and a fair value of approximately $6.3 billion at the acquisition date, is comprised of various types of loan products. The loan portfolio has been bucketed considering similar risk characteristics and product types and was further segmented into a commercial loan portfolio and a consumer loan portfolio to align with CIT’s business segmentation. The following table presents the loan valuations by division in each segment. Loans (dollars in millions) UPB Fair Value Commercial Banking Commercial Finance $ 2,316.4 $ 2,249.4 Real Estate Finance 2,107.3 2,106.4 Consumer Banking Consumer and Community Banking 1,926.7 1,942.1 Total loans $ 6,350.4 $ 6,297.9 The acquired loan portfolios above were valued using the direct method under the income approach. The income approach derives an estimate of value based on the present value of the projected future cash flows of each loan using a discount rate that incorporates the relevant risks associated with the asset and the time value of money. To perform the valuation, the loan portfolio was divided into approximately twenty cohorts based on risk characteristics, nature and collateral of the underlying loans and product type. The loan cohorts were further bifurcated for fixed and adjustable rate loans and then stratified based on credit risk rating for commercial loans and FICO scores for consumer loans. The key cash flow assumptions related to the above acquired loan portfolios were: prepayment rate, default rate, severity rate and discount rate, as applicable. The Company applied the recovery approach to value the commercial loans identified as individually impaired loans. The fair value of the loans was estimated by discounting the estimated recovery amount to be collected The table below summarizes the key valuation input assumptions by division for the acquired loans, excluding the individually impaired loans: Discount Rate Severity Rate Prepayment Rate Default Rate Loan portfolio Range Weighted Avg. Range Weighted Avg. Range Weighted Avg. Range Weighted Avg. Commercial Banking Commercial Finance 3.25% -15.50% 4.33% 15.00% - 60.00% 18.59% 1.25% - 26.75% 17.99% 0.25% - 7.00% 1.90% Real Estate Finance 3.25% - 5.50% 3.86% 15.00% - 30.00% 18.37% 0.50% - 26.75% 17.77% 0.10% - 7.00% 2.67% Consumer Banking Consumer and Community Banking 2.50% - 6.75% 3.42% 5.00% - 35.00% 9.95% 1.50% - 30.0% 21.93% 0.05% - 7.00% 0.33% Goodwill and intangible assets The goodwill recorded is attributable to advancing CIT’s bank deposit strategy by establishing a leading market share in HOA banking, improving CIT’s competitive position in the financial services industry, and the related synergies that are expected to result from the acquisition. The $115.2 million of goodwill recorded represents the excess of the purchase price over the estimated fair value of the net assets acquired by CIT, including intangible assets. See Note 25 – Goodwill and Intangible Assets The following table presents the intangible assets recorded in conjunction with the MOB Acquisition related to the valuation of core deposits, customer relationships and trade name. Intangible Assets (dollars in millions) Fair Value Estimated Useful Life Amortization Method Core deposit intangibles $ 96.1 10 years Straight line Customer relationships 3.5 7 years Accelerated Trade name 3.0 7 years Straight line Total intangible assets $ 102.6 • Core Deposit Intangibles — Certain core deposits were acquired as part of the transaction, which provide an additional source of funds for CIT. The core deposit intangibles represent the costs saved by CIT by acquiring the core deposits rather than sourcing the funds elsewhere. This intangible was valued using the income approach: after-tax cost savings method. • Customer Relationships — Certain customer relationships were acquired as part of the transaction related to the various MOB product offerings. These relationships include those that are both consumer and commercial based, as well as those related to Community Association Banking (“CAB”) products. The acquired customer relationships were valued using the income approach: multi-period excess earnings method. • Trade Name — CIT acquired the CAB name, which is commercially recognized and expected to drive value for the HOA business. The acquired trade name was valued using the income approach: relief from royalty method. See Note 25 – Goodwill and Intangible Assets Other assets The following table details the other assets acquired. Other Assets (dollars in millions) Adjusted Fair Value Right of use assets $ 45.5 Property, furniture and fixtures 27.4 Tax credit investments and investments in unconsolidated entities 23.9 Fair value of derivative financial instruments 19.9 Other 82.8 Total other assets $ 199.5 As of the acquisition date, MOB held investments in certain restricted equity, low income housing tax credits (“LIHTC”), equity equivalents in not for profits, limited partner interests in CRA funds and FHLB Stock. The fair value of the LIHTC investments considered the ongoing equity installments that are regularly allocated to each of the underlying tax credit funds comprising the LIHTC Investments, along with changes to projected tax benefits and the impact this has on future capital contributions, and an appropriately determined discount rate. At acquisition, MOB also held equity interests in four limited partnerships, which have been valued using the net asset value (“NAV”) published by each fund. The acquisition included various property, furniture and fixtures inclusive of leasehold improvements. CIT considered the income, market and cost approaches in estimating the fair value of the property, furniture and fixtures. Leasehold improvements, machinery and equipment and computer software were valued under the cost approach. Computer hardware was valued using the percent of cost method under the market approach. Office furniture and equipment were valued under market and cost approaches. The fair value of the property, furniture and fixtures was estimated at $14.9 million. The Company acquired Mortgage Servicing Rights (“MSRs”) (included in other in the above table), which represent a contract for the right to receive future revenue associated with the servicing of financial assets and thus are considered a non-financial asset. The estimated fair value of the MSRs was valued under the income approach using the discounted cash flow model which utilizes certain key assumptions including prepayment speed, discount rates and cost to service. Deposits Deposits of $7.0 billion includes $1.2 billion of certificate of deposits (“CDs”), which allow depositors to lock in interest rates for varying periods of time, and $5.8 billion of deposits with no stated maturities. CDs had contractual maturities ranging from 30 days to 5 years. These deposits were valued using the indirect method of the income approach, which is based on discounting the cash flows associated with the CDs. Value under the indirect method was a function of the projected contractual cash flows of the CDs and a credit adjusted discount rate, as observed from similar risk instruments. In order to best capture the features and risks of the CDs, they were grouped along two dimensions; maturity groups, based on the remaining fixed term of the deposits (e.g., 0 to 1 year, 1 to 2 years, etc.), and balance (e.g., less than $100,000 and greater than or equal to $100,000). The valuation of term deposits resulted in a purchase accounting adjustment (“PAA”) premium of $14.3 million. For non-maturity deposits (primarily checking, savings and money market deposits), the fair value was assumed to equal the carrying value, therefore no PAA was recorded. Securities sold under agreement to repurchase Securities sold under agreements to repurchase (“Repos”) of $193.2 million were accounted for as collateralized financing transactions as the terms of sale agreements do not qualify for sale accounting and are therefore recorded at the amount of cash received. Accrued interest payables are recorded in other liabilities. Interest incurred is recorded in Interest expense. Repos are collateralized by securities reported as assets on the condensed Consolidated Balance Sheets. The fair value of collateral is monitored daily and additional collateral is provided or excess collateral is returned for margin maintenance purposes. All Repos were overnight and collateralized by securities issued or guaranteed by U.S. government/sponsored agencies. Given that the Repos mature each business day, the carrying values were assumed to approximate the fair value. Borrowings Borrowings reflects the Federal Home Loan Bank (“FHLB”) advances of $290.0 million. The fair value is assumed to be equal to the outstanding balance since these advances mature the next day with the interest rate set to the overnight market rate. Other liabilities Other liabilities of $93.7 million includes lease liabilities related to the application of ASC 842 Leases, various amounts accrued for compensation related costs and other payables. Unaudited Pro Forma Information The amount of MOB interest income, non-interest income and net loss of $241.0 million, $32.8 million and $138.6 million, respectively, were included in CIT’s Consolidated Statement of Operations for the year ended December 31, 2020. ended December 31 , 2020 to 2019; and (c) inclusion of estimated PAA accretion on interest income and interest expense and the recording of intangible asset amortization in 2019. CIT expects to achieve operating cost savings and other business synergies as a result of the acquisition that are not reflected in the pro forma amounts that follow. The pro forma information is not indicative of what would have occurred had the acquisition taken place on January 1, 2019. Therefore, actual results may differ from the unaudited pro forma information presented and the differences could be significant. Selected Unaudited Pro Forma Financial Information for Consolidated CIT (dollars in millions) Years Ended December 31, 2020 2019 Interest income $ 1,799.0 $ 2,345.0 Non-interest income 1,351.4 1,293.4 Net (loss) income (529.8 ) 509.6 DISCONTINUED OPERATIONS There were no discontinued operations at December 31, 2020 and 2019. At 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 reverse mortgage servicing 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 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 statement of operations activity, were reclassified to continuing operations. Condensed Combined Statement of Operations (dollars in millions) Years Ended December 31, 2020 2019 2018 Interest income $ - $ 3.4 $ 14.6 Interest expense - 2.8 10.5 Rental income on operating leases - - 0.5 Other income - 3.0 19.9 Operating expenses - 2.9 35.7 Income (loss) from discontinued operations before provision (benefit) for income taxes - 0.7 (11.2 ) Provision (benefit) for income taxes - 0.2 (2.5 ) Income (loss) on sale of discontinued operation, net of taxes - - (16.3 ) Income (loss) from discontinued operations, net of taxes $ - $ 0.5 $ (25.0 ) Discontinued operations activity ended during 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. Condensed Combined Statement of Cash Flows (dollars in millions) Years Ended December 31, 2020 2019 2018 Net cash flows (used in) provided by operations $ - $ (4.4 ) $ 7.2 Net cash flows provided by investing activities - 54.9 148.7 |
Loans
Loans | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
LOANS | NOTE 3 — LOANS The following tables and data as of December 31, 2020 include the loan balances acquired in the MOB Acquisition, which were recorded at fair value on the acquisition date. See Note 2 — Acquisition and Discontinued Operations Unless otherwise noted, loans held for sale are not included in the amounts presented throughout this note. Loans by Product (dollars in millions) December 31, 2020 December 31, 2019 Commercial loans $ 27,410.9 $ 22,765.1 Financing leases and leverage leases 2,318.0 2,254.4 Total commercial 29,728.9 25,019.5 Consumer loans 6,415.7 5,979.4 Total loans $ 36,144.6 $ 30,998.9 The following table presents loans by segment, based on obligor location: Loans (dollars in millions) December 31, 2020 December 31, 2019 Domestic Foreign Total Domestic Foreign Total Commercial Banking $ 27,323.4 $ 1,313.1 $ 28,636.5 $ 22,866.0 $ 1,527.4 $ 24,393.4 Consumer Banking ( 1) 7,508.1 - 7,508.1 6,605.5 - 6,605.5 Total $ 34,831.5 $ 1,313.1 $ 36,144.6 $ 29,471.5 $ 1,527.4 $ 30,998.9 (1) The Consumer Banking segment includes certain commercial loans, primarily consisting of a portfolio of Small Business Administration ("SBA") loans. These loans are excluded from the Consumer loan balances and included in the Commercial loan balances in product related tables in this note. The following table presents selected components of the net investment in loans: Components of Net Investment (dollars in millions) December 31, December 31, 2020 2019 Unearned income $ (373.9 ) $ (430.0 ) Unamortized (discounts) premium (434.4 ) 30.0 Accretable yield on PCI loans ( 1) — (745.4 ) Net unamortized deferred costs 35.8 50.9 (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 Indicators Management monitors credit quality of commercial loans and financing leases based upon risk rating classifications consistent with bank regulatory guidance and consumer loans based upon FICO scores and LTV. 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 — loans in this category exhibit potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of a loan’s repayment prospects. • Classified — loans in this category range from: (1) loans 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) loans with weaknesses that make collection or liquidation in full unlikely on the basis of current facts, conditions, and values. Classified loans can accrue interest or be placed on non-accrual depending on the Company’s evaluation of these factors. Commercial criticized loans include loans with a rating of special mention or classified. For consumer loans, we monitor credit quality utilizing the borrower FICO scores to evaluate borrowers’ credit payment history and current LTV of the underlying collateral to assess potential loss severity in the event of default. A loan to a borrower with a low FICO score (less than 660) is considered to be of higher risk than a loan to a borrower with a higher FICO score. The Company examines LTV migration and stratifies LTV into categories to monitor risk in the loan classes. The Company periodically updates the property values of real estate collateral (for home equity and residential mortgages) to calculate current LTV ratios, adjusted based on the Case-Shiller Home Price Indices. Further, a loan to a borrower with a high LTV ratio and a low FICO score is at greater risk of default than a loan to a borrower that has both a high LTV ratio and a high FICO score. The following table summarizes commercial loans disaggregated by year of origination and by risk rating. The consumer loan LTV ratios and FICO scores by year of origination are also presented below. Following the Company’s adoption of CECL, prior period risk rating disclosures were not conformed to current disclosure requirements and will continue to be reported under previously applicable accounting guidance. The tables reflect the amortized cost basis of the loans. Accrued interest receivable (within other assets) is reported separately from the loan’s amortized cost basis. Commercial Loans— Risk Rating by Class (dollars in millions) Grade Term Loans by Origination Year Revolving Loans Converted December 31, 2020 2020 2019 2018 2017 2016 2015 & Prior Revolving Loans to Term Loans Total ( 1) Commercial Finance Pass $ 4,819.9 $ 2,132.5 $ 2,000.1 $ 678.0 $ 181.1 $ 745.6 $ 3,329.4 $ 61.1 $ 13,947.7 Special Mention 81.2 206.4 210.8 18.4 30.8 119.9 313.3 2.8 983.6 Classified-accrual 82.4 161.7 49.8 169.2 107.2 183.1 314.2 5.6 1,073.2 Classified-non-accrual 0.5 9.0 53.9 9.6 22.1 60.7 83.6 — 239.4 Total Commercial Finance 4,984.0 2,509.6 2,314.6 875.2 341.2 1,109.3 4,040.5 69.5 16,243.9 Real Estate Finance Pass 1,075.9 2,089.2 1,212.3 663.5 480.3 493.0 28.1 — 6,042.3 Special Mention 65.9 333.7 126.4 225.5 93.5 46.3 — — 891.3 Classified-accrual 0.3 184.4 124.2 74.6 78.0 75.8 — — 537.3 Classified-non-accrual — 33.3 0.2 15.3 0.2 28.0 6.2 — 83.2 Total Real Estate Finance 1,142.1 2,640.6 1,463.1 978.9 652.0 643.1 34.3 — 7,554.1 Business Capital Pass 1,678.9 1,371.4 809.5 299.3 106.3 15.6 14.4 0.8 4,296.2 Special Mention 29.6 67.2 42.4 32.4 12.3 0.3 — — 184.2 Classified-accrual 34.3 80.8 71.5 25.9 11.2 0.9 — — 224.6 Classified-non-accrual 8.0 33.0 17.1 10.9 2.8 1.0 — — 72.8 Total Business Capital 1,750.8 1,552.4 940.5 368.5 132.6 17.8 14.4 0.8 4,777.8 Rail Pass — 0.8 — 0.1 3.1 56.7 — — 60.7 Total Rail — 0.8 — 0.1 3.1 56.7 — — 60.7 Total Commercial Banking Pass 7,574.7 5,593.9 4,021.9 1,640.9 770.8 1,310.9 3,371.9 61.9 24,346.9 Special Mention 176.7 607.3 379.6 276.3 136.6 166.5 313.3 2.8 2,059.1 Classified-accrual 117.0 426.9 245.5 269.7 196.4 259.8 314.2 5.6 1,835.1 Classified-non-accrual 8.5 75.3 71.2 35.8 25.1 89.7 89.8 — 395.4 Total Commercial Banking 7,876.9 6,703.4 4,718.2 2,222.7 1,128.9 1,826.9 4,089.2 70.3 28,636.5 Consumer Banking - Consumer and Community Banking ( 2) Pass 507.6 157.1 104.5 62.3 50.0 67.3 0.1 — 948.9 Special Mention — 13.1 4.3 2.8 2.6 0.9 — — 23.7 Classified-accrual 21.0 19.3 17.0 11.0 13.8 17.6 0.3 — 100.0 Classified-non-accrual — 11.8 3.0 3.2 1.0 0.8 — — 19.8 Total Consumer Banking 528.6 201.3 128.8 79.3 67.4 86.6 0.4 — 1,092.4 Commercial Loans Pass 8,082.3 5,751.0 4,126.4 1,703.2 820.8 1,378.2 3,372.0 61.9 25,295.8 Special Mention 176.7 620.4 383.9 279.1 139.2 167.4 313.3 2.8 2,082.8 Classified-accrual 138.0 446.2 262.5 280.7 210.2 277.4 314.5 5.6 1,935.1 Classified-non-accrual 8.5 87.1 74.2 39.0 26.1 90.5 89.8 — 415.2 Total Commercial Loans $ 8,405.5 $ 6,904.7 $ 4,847.0 $ 2,302.0 $ 1,196.3 $ 1,913.5 $ 4,089.6 $ 70.3 $ 29,728.9 (1) Amortized cost excludes accrued interest receivable of $48.6 million that is included in other assets, of which $6.1 million relates to loan modifications made in response to the COVID-19 pandemic. (2) Primarily SBA loans. Commercial Loans — Risk Rating by Class (dollars in millions) Grade Pass Special Mention Classified- accrual Classified- non-accrual PCI Loans ( 1) Total December 31, 2019 Commercial Banking Commercial Finance $ 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 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 (1) PCI Loans had $20.7 million of non-criticized loans and $7.1 million of criticized loans (special mention or classified The following table provides a summary of the consumer loan LTV distribution for primarily single-family residential (“SFR”) mortgage loans. The average LTV was 58% and 63% for the total consumer loans included below at December 31, 2020 and December 31, 2019, respectively. For loans with active deferment arrangements due to COVID-19, the average LTV was 62% at December 31, 2020. Following the Company’s adoption of CECL, the comparative prior period financial information was not adjusted for the Consumer Loan LTV Distribution and will continue to be reported under previously applicable accounting guidance. Consumer Loans LTV Distribution (dollars in millions) Term Loans Amortized Cost Basis by Origination Year Revolving Loans Converted LTV Range 2020 2019 2018 2017 2016 2015 & Prior Revolving Loans to Term Loans Total ( 4) December 31, 2020 Legacy Consumer Mortgages Greater than 125% $ — $ — $ — $ — $ — $ 37.5 $ — $ 0.4 $ 37.9 101% – 125% — — — — — 60.5 — 1.1 61.6 80% – 100% — — — — — 189.2 — 3.4 192.6 Less than 80% — — — — — 1,344.3 — 34.7 1,379.0 Government-guaranteed ( 1) — — — — — 20.8 — — 20.8 No LTV available ( 2) — — — — — 0.1 — 1.7 1.8 Total Legacy Consumer Mortgages — — — — — 1,652.4 — 41.3 1,693.7 Consumer and Community Banking Greater than 125% — — — — — — — — — 101% – 125% — — — — — — — — — 80% – 100% 21.3 17.1 3.5 — — 1.7 2.4 — 46.0 Less than 80% 1,328.4 1,022.7 445.8 507.2 380.1 778.8 41.5 — 4,504.5 Government-guaranteed ( 1) 12.0 33.7 15.7 68.2 9.5 7.8 — — 146.9 No LTV available ( 2) — — 0.2 0.2 0.2 0.7 1.3 — 2.6 No LTV required ( 3) 2.0 1.0 1.0 0.6 1.0 13.4 3.0 — 22.0 Total Consumer and Community Banking 1,363.7 1,074.5 466.2 576.2 390.8 802.4 48.2 — 4,722.0 Total Consumer Loans (4) $ 1,363.7 $ 1,074.5 $ 466.2 $ 576.2 $ 390.8 $ 2,454.8 $ 48.2 $ 41.3 $ 6,415.7 (1) (2) (3) (4) Prior to 2020, certain consumer SFR loans were “covered loans” for which the Company was eligible for reimbursement for a portion of certain future losses with indemnifications provided by the FDIC under loss share agreements (“LSAs”). At December 31, 2019, the covered loans reflected below related to the FDIC-assisted transactions of First Federal Bank of California in December 2009 (“First Federal Transaction”) and La Jolla Bank, FSB in February 2010 (“La Jolla Transaction”) for which the indemnification period ended in December 2019 and February 2020, respectively. All of the LSAs have expired and there are no covered loans at December 31, 2020. Consumer Loans LTV Distribution (dollars in millions) Covered Loans 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 (1) Certain Consumer Loans do not have LTV's. The following table provides a summary of the FICO score distribution for consumer loans by origination year and revolving loans. The average FICO score was 755 and 751 for the total consumer loans included below at December 31, 2020 and December 31, 2019, respectively. For loans with active deferment arrangements due to COVID-19, the average FICO score of the borrowers was 695 at December 31, 2020. These borrower’s FICO scores are not impacted during the payment deferral period as the credit reporting will not be negatively impacted given no contractual payments are due. Current FICO Score Distribution (dollars in millions) Term Loans Amortized Cost Basis by Origination Year Revolving Loans Converted Current FICO 2020 2019 2018 2017 2016 2015 & Prior Revolving Loans to Term Loans Total (4) December 31, 2020 Legacy Consumer Mortgages Greater than or equal to 730 $ — $ — $ — $ — $ — $ 729.1 $ — $ 17.9 $ 747.0 Greater than or equal to 660 and less than 730 — — — — — 499.3 — 13.0 512.3 Less than 660 — — — — — 369.4 — 9.4 378.8 Government-guaranteed (1) — — — — — 20.8 — - 20.8 No FICO score available (2) — — — — — 33.8 — 1.0 34.8 Total Legacy Consumer Mortgages — — — — — 1,652.4 — 41.3 1,693.7 Consumer and Community Banking Greater than or equal to 730 1,152.3 923.7 372.3 453.5 339.7 596.7 34.2 — 3,872.4 Greater than or equal to 660 and less than 730 186.3 104.7 68.7 46.3 34.5 125.6 10.0 — 576.1 Less than 660 11.0 11.2 8.4 7.3 5.5 40.8 3.1 — 87.3 Government-guaranteed (1) 12.0 33.7 15.7 68.2 9.5 7.8 — — 146.9 No FICO score available (2) 0.1 0.5 0.1 0.3 0.6 18.2 0.2 — 20.0 FICO score not required (3) 2.0 0.7 1.0 0.6 1.0 13.3 0.7 — 19.3 Total Consumer and Community Banking 1,363.7 1,074.5 466.2 576.2 390.8 802.4 48.2 — 4,722.0 Total Consumer Loans (4) $ 1,363.7 $ 1,074.5 $ 466.2 $ 576.2 $ 390.8 $ 2,454.8 $ 48.2 $ 41.3 $ 6,415.7 (1) (2) (3) (4) FICO Score Distribution at December 31, 2019 (dollars in millions) Covered Loans Non-covered Loans Total Consumer FICO Range Non-PCI PCI Non-PCI PCI Loans December 31, 2019 Legacy Consumer Mortgages Greater than or equal to 730 $ 202.2 $ 98.6 $ 320.0 $ 252.5 $ 873.3 Greater than or equal to 660 and less than 730 71.3 98.8 123.2 324.7 618.0 Less than 660 16.8 89.8 51.0 370.5 528.1 Government-guaranteed ( 1) — — 24.5 — 24.5 No FICO score available ( 2) 17.5 6.5 5.2 8.4 37.6 Total Legacy Consumer Mortgages 307.8 293.7 523.9 956.1 2,081.5 Consumer and Community Banking Greater than or equal to 730 — — 3,319.0 — 3,319.0 Greater than or equal to 660 and less than 730 — — 332.6 — 332.6 Less than 660 — — 29.6 — 29.6 Government-guaranteed ( 1) — — 193.8 — 193.8 No FICO score available — — 21.8 — 21.8 FICO score not required ( 2) — — 1.1 — 1.1 Total Consumer and Community Banking — — 3,897.9 — 3,897.9 Total Consumer Banking $ 307.8 $ 293.7 $ 4,421.8 $ 956.1 $ 5,979.4 (1) (2) As of December 31, 2020 and December 31, 2019, there was no remaining amount of negative amortization contractually permitted on consumer loans with terms that allowed negative amortization. Past Due and Non-accrual Loans For additional information on reporting of past due and non-accrual loans, see discussion of the CARES Act and Interagency Statement in Note 1 – Business and Summary of Significant Accounting Policies The table that follows presents portfolio delinquency status, regardless of accrual or non-accrual classification: Loans - Delinquency Status (dollars in millions) Past Due 30-59 60-89 90 or more Total Past Due Current ( 1) PCI Loans ( 2) Total December 31, 2020 Commercial Banking Commercial Finance $ 59.9 $ 2.8 $ 122.0 $ 184.7 $ 16,059.2 $ — $ 16,243.9 Real Estate Finance 71.7 38.3 82.4 192.4 7,361.7 — 7,554.1 Business Capital 113.6 40.2 16.6 170.4 4,607.4 — 4,777.8 Rail — — — — 60.7 — 60.7 Total Commercial Banking 245.2 81.3 221.0 547.5 28,089.0 — 28,636.5 Consumer Banking Legacy Consumer Mortgages 61.0 17.6 79.7 158.3 1,535.5 — 1,693.8 Consumer and Community Banking 173.1 10.6 34.0 217.7 5,596.6 — 5,814.3 Total Consumer Banking 234.1 28.2 113.7 376.0 7,132.1 — 7,508.1 Total $ 479.3 $ 109.5 $ 334.7 $ 923.5 $ 35,221.1 $ — $ 36,144.6 December 31, 2019 Commercial Banking Commercial Finance $ 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 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 Mortgages 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 (1) The “Current” balance at December 31, 2020 includes $459 million of loans with active COVID-19 related payment deferment (comprised of $347 million Commercial Banking and $112 million Consumer Banking loans) that are not classified as past due given no contractual payment is due during the deferment period. In addition, total loans with active COVID-19 related deferment of approximately $49 million, $3 million, and $26 million are in the 30-59,60-89, and 90 or more past due balances, respectively (2) Prior to 2020, 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 that are 90 or more days past due guaranteed by government agencies are not placed on non-accrual status. Loans on Non-Accrual Status (dollars in millions) ( 1 ) December 31, 2019 CECL Adoption ( 2 ) MOB Acquisition January 1, 2020 December 31, 2020 With No Allowance Recorded ( 3 ) Commercial Banking Commercial Finance ( 4 ) $ 246.7 $ — $ 61.1 $ 307.8 $ 239.4 $ 8.0 Business Capital 60.9 — — 60.9 72.8 1.5 Real Estate Finance 0.4 0.6 — 1.0 83.2 16.0 Total Commercial Banking 308.0 0.6 61.1 369.7 395.4 25.5 Consumer Banking Consumer and Community Banking 4.0 — 7.2 11.2 53.4 38.2 Legacy Consumer Mortgages ( 5 ) 14.3 81.6 — 95.9 139.3 30.0 Total Consumer Banking 18.3 81.6 7.2 107.1 192.7 68.2 Total $ 326.3 $ 82.2 $ 68.3 $ 476.8 $ 588.1 $ 93.7 Repossessed assets and OREO ( 6 ) 20.1 7.9 Total non-performing assets $ 346.4 $ 596.0 Commercial loans past due 90 days or more accruing $ 25.6 $ 92.5 Consumer loans past due 90 days or more accruing 11.3 11.3 Total accruing loans past due 90 days or more ( 7 ) $ 36.9 $ 103.8 (1) Accrued interest that was reversed when the loan went to non-accrual status was $6.2 million for the year ended December 31, 2020. (2) CECL adoption is before the MOB Acquisition, detail of which is separately disclosed. Upon adoption, the increase in non-accrual loans relates to loans previously classified as PCI that historically were not subject to non-accrual classification. (3) Includes loans that have been charged off to their net realizable value and loans where the collateral or enterprise value exceeds the expected pay off value. (4) Factored receivables within our Commercial Finance division do not accrue interest and therefore are not considered within non-accrual loan balances; however factored receivables are considered for credit provisioning purposes. Loans that are 90 or more days past due guaranteed by government agencies are not placed on non-accrual status. (5) December 31, 2020 (6) Balances consist primarily of single-family residential OREO. (7) Balance as of December 31, 2020 includes $65 million of loans that have or had COVID-19 related deferments (i.e. active deferment or exited). 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. Interest income recognized on a cash basis for the year ended December 31, 2020 was $2.2 million. Loans are in the process of foreclosure when repayment is expected to be provided substantially through the sale of the underlying real estate and the borrower is experiencing financial difficulty. The table below summarizes the residential mortgage loans in the process of foreclosure. Consistent with the government agency guidance, CIT has suspended residential property foreclosures and evictions until at least March 31, 2021 to single family homeowners due to the COVID-19 pandemic. Loans in Process of Foreclosure (dollars in millions) December 31, December 31, 2020 2019 Loans in process of foreclosure ( 1) $ 22.9 $ 38.9 (1) Impaired Loans The following table contains prior period information about impaired loans and the related allowance for loan losses by class, pre-adoption of CECL. CECL did not carry forward the concept of impaired loans, therefore only the prior period is presented. PCI loans, which were excluded from impaired loan balances, included loans that were identified as impaired at the date of the OneWest Transaction (the “Acquisition Date”) for which the Company applied 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) Average Recorded Investment December 31, 2019 Recorded Investment Unpaid Principal Balance Related Allowance Year Ended December 31, 2019 With no related allowance recorded: Commercial Banking Commercial Finance $ 46.5 $ 69.0 $ — $ 68.0 Business Capital 4.8 5.5 — 6.0 Real Estate Finance — — — 1.6 Consumer Banking Consumer and Community Banking 4.0 4.0 — 4.9 Legacy Consumer Mortgages 20.6 22.4 — 24.7 With an allowance recorded: Commercial Banking Commercial Finance 223.9 267.3 86.0 166.6 Business Capital 19.4 19.4 10.0 11.6 Real Estate Finance — — — 0.8 Consumer Banking Consumer and Community Banking 0.1 0.2 — — Legacy Consumer Mortgages 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 (1) Loans Acquired with Deteriorated Credit Quality Effective with the adoption of CECL, PCD loans are recorded at an initial amortized cost comprised of the sum of (1) the purchase price and (2) the estimate of credit losses which is recorded in the ACL. Subsequent to the initial recognition, PCD loans are accounted for under the same methodology as non-PCD loans. The following table provides a reconciliation of the purchase price and the unpaid principal balance / contractual cash flows owed to CIT as of the acquisition date for loans acquired during the respective period. For the period ended December 31, 2020, the PCD loans acquired related to the MOB Acquisition. PCD Loans acquired during the year ended December 31, 2020 (dollars in millions) Commercial Banking Consumer Banking Total Par value (UPB) $ 347.8 $ 58.4 $ 406.2 Allowance for credit losses ( 1) (56.1 ) (2.7 ) (58.8 ) (Discount) premium (9.0 ) 2.4 (6.6 ) Purchase price $ 282.7 $ 58.1 $ 340.8 (1) Under the CECL standard, the initial ACL recognized on PCD assets was $58.8 million, of which $38.6 million was charged-off for loans that had been written-off prior to acquisition (whether full or partial) or which met CIT’s charge-off policy at the time of acquisition. After considering loans that were immediately charged-off upon acquisition, the net impact was $20.2 million of additional PCD reserves Pre-adoption of CECL, 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 Credit Losses. PCI 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 Accretable Yield Changes in the accretable yield for PCI loans are summarized below. Prior to 2020, the changes in the accretable yield was presented for PCI loans. See the Company’s 2019 Form 10-K, Note 1 — Business and Summary of Significant Accounting Policies Change in Accretable Yield (dollars in millions) Years Ended December 31, 2019 2018 Balance, beginning of period $ 903.8 $ 1,063.7 Accretion into interest income (146.9 ) (167.5 ) Reclassification from non-accretable difference 19.2 17.8 Disposals and Other (30.7 ) (10.2 ) Balance, end of period $ 745.4 $ 903.8 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 when 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 may be either by agreement between CIT and the debtor or imposed by law or a court of law. The CARES Act and Interagency Statement offer some practical expedients for evaluating whether loan modifications that occur in response to the COVID-19 pandemic are TDRs. See Note 1 — Business and Summary of Significant Accounting Policies 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 individually reviewed loans policy. The following table presents the recorded investment of TDRs, excluding those within a trial modification period of $4.5 million, $5.5 million and $4.2 million as of December 31, 2020, 2019 and 2018: TDRs (dollars in millions) December 31, 2020 December 31, 2019 December 31, 2018 Recorded Investment % Total TDR Recorded Investment % Total TDR Recorded Investment % Total TDR Commercial Banking $ 109.8 82 % $ 129.5 87 % $ 70.4 80 % Consumer Banking 24.6 18 % 19.3 13 % 17.2 20 % Total $ 134.4 100 % $ 148.8 100 % $ 87.6 100 % Percent non-accrual 73 % 71 % 79 % Modifications (dollars in millions) Years Ended 2020 2019 2018 Recorded investment related to modifications qualifying as TDRs that occurred during the years $ 88.4 $ 89.9 $ 69.0 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 $ 24.0 $ 23.2 $ 21.8 There were $28.3 million and $23.6 million as of December 31, 2020 and December 31, 2019, 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, 2020 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, 2020 were comprised of payment deferrals (40%) and covenant relief and/or other (60%). At December 31, 2019, TDR recorded investment was comprised of payment deferrals (52%) and covenant relief and/or other (48%). • 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, 2020 and 2019 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, 2020 and 2019 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. Except as it related to the modifications made for COVID-19 impacted borrowers, 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 Credit Losses
Allowance For Credit Losses | 12 Months Ended |
Dec. 31, 2020 | |
Credit Loss [Abstract] | |
ALLOWANCE FOR CREDIT LOSSES | NOTE 4 — ALLOWANCE FOR CREDIT LOSSES The ACL and the allowance for off-balance sheet credit exposures are reported on the Condensed Consolidated Balance Sheets in the allowance for credit losses and in other liabilities, respectively. Provision for credit losses related to the loans and leases portfolio and the unfunded lending commitments are reported in the Consolidated Statements of Operations as provision for credit losses. As described in Note 1 – Business and Summary of Significant Accounting Policies Allowance for Credit Losses and Recorded Investment in Loans (dollars in millions) Commercial Banking Consumer Banking Total Commercial Banking Consumer Banking Total Year Ended December 31, 2020 Year Ended December 31, 2019 Balance - beginning of period $ 460.4 $ 22.2 $ 482.6 $ 460.2 $ 29.5 $ 489.7 CECL adoption ( 1) 74.7 148.9 223.6 - - - Provision (benefit) for credit losses ( 2) 834.2 (33.9 ) 800.3 117.3 (6.5 ) 110.8 The initial ACL recognized on PCD assets ( 3) 18.8 1.4 20.2 - - - Other ( 4) (32.1 ) (3.8 ) (35.9 ) 5.0 (0.6 ) 4.4 Gross charge-offs ( 4) (488.0 ) (7.1 ) (495.1 ) (151.2 ) (2.7 ) (153.9 ) Recoveries 65.7 2.4 68.1 29.1 2.5 31.6 Balance - end of period $ 933.7 $ 130.1 $ 1,063.8 $ 460.4 $ 22.2 $ 482.6 Allowance Balance at December 31, 2020 Allowance Balance at December 31, 2019 Loans individually evaluated for impairment $ 100.8 $ 5.5 $ 106.3 $ 96.0 $ 0.2 $ 96.2 Loans collectively evaluated for impairment 832.9 124.6 957.5 354.6 14.4 369.0 PCI loans ( 5) - - - 9.8 7.6 17.4 Allowance for credit losses 933.7 130.1 1,063.8 460.4 22.2 482.6 Allowance for off-balance sheet credit exposures $ 76.8 $ 1.5 $ 78.3 $ 36.4 $ 0.7 $ 37.1 Loans at December 31, 2020 Loans at December 31, 2020 Loans at December 31, 2019 Loans individually evaluated for impairment $ 346.3 $ 86.4 $ 432.7 $ 294.6 $ 26.1 $ 320.7 Loans collectively evaluated for impairment 28,290.2 7,421.7 35,711.9 24,071.0 5,329.6 29,400.6 PCI loans ( 5) - - - 27.8 1,249.8 1,277.6 Ending balance $ 28,636.5 $ 7,508.1 $ 36,144.6 $ 24,393.4 $ 6,605.5 $ 30,998.9 Percent of loans to total loans 79.2 % 20.8 % 100.0 % 78.7 % 21.3 % 100.0 % (1) CECL adoption was before the MOB Acquisition. (2) Included in the provision for credit losses was $33.4 million for the year ended December 31, 2020, related to the provision for off-balance sheet credit exposures, which is not part of the ACL and is offset in the “Other” line. The provision for off-balance sheet credit exposures was $(4.4) million year ended December 31, 2019. (3) Under the CECL standard, the initial ACL recognized on PCD assets was $58.8 million, of which $38.6 million was charged-off for loans that had been written-off prior to acquisition (whether full or partial) or which met CIT’s charge-off policy at the time of acquisition. After considering loans that were immediately charged-off upon acquisition, the net impact was $20.2 million of additional PCD reserves on January 1, 2020. (4) “Other” primarily includes the transfer of the “Allowance for off balance sheet credit exposures,” which represents credit loss reserves for unfunded lending commitments, DPA’s, and letters of credit, to other liabilities. (5) Represents PCI loans under ASC 310-30. PCI loans transitioned to PCD loans under CECL and are evaluated for impairment consistent with the non-PCD loans under the Company’s policies surrounding loans individually and collectively evaluated. The ACL was $1,063.8 million as of December 31, 2020, compared to $482.6 million at December 31, 2019. The Provision for credit losses was $800.3 million for the year ended December 31, 2020, compared to $110.8 million for the year ended December 31, 2019. The significant increase in the ACL and the provision compared to the prior year periods reflects the impact of the global COVID-19 pandemic and the associated impact on the market environment across our portfolio, along with the adoption of the CECL standard and the impact of the MOB Acquisition on January 1, 2020. During the year ended December 31, 2020, the allowance for off-balance sheet credit exposures increased from $37.1 million at December 31, 2019 to $78.3 million at December 31, 2020. The increase from $37.1 million at December 31, 2019 was primarily driven by the impact of the global COVID-19 pandemic and the associated impact on the market environment across our portfolio and the associated effect under the CECL standard. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
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, December 31, 2020 2019 ROU assets $ 198.8 $ 194.9 Lease liabilities 249.9 242.6 Weighted-average remaining lease terms 9 Years 9 Years Weighted-average discount rate 4.32 % 4.77 % Supplemental Cash Flow Information (dollars in millions): Years Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities $ 56.3 $ 45.8 ROU assets obtained in exchange for new lease liabilities 18.1 18.0 The following table presents maturities of lease liabilities at December 31, 2020: Maturity of Lease Liabilities (dollars in millions) Years Ending December 31, 2021 $ 44.6 2022 35.7 2023 33.9 2024 32.7 2025 30.4 Thereafter 131.7 Total undiscounted lease payments $ 309.0 Difference between undiscounted cash flows and discounted cash flows (59.1 ) Lease liabilities, at present value $ 249.9 In addition to the table above, we have future operating lease commitments of $103 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 April 2021 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) Years Ended December 31, 2020 2019 Operating lease cost ( 1) $ 50.6 $ 43.1 Variable lease cost 19.6 10.6 Sublease income (11.3 ) (14.9 ) Total operating lease expense $ 58.9 $ 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. Variable lease expense also includes lease termination expense of $6.3 million and $0.4 million for the years ended December 31, 2020 and 2019, respectively. As a result of these terminations, the remaining balances of the ROU assets and lease liabilities for these leased facilities were derecognized. 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 3 years. The Company incurred ROU asset impairment charges of $6.1 million for the year ended December 31, 2020, representing the carrying amount of ROU assets for leased facilities which were not recoverable. These impaired ROU assets were written down to fair value, which was determined based on the discounted cash flows of estimated rental income for the office space to be subleased, using market participant assumptions. The ROU asset impairment charges are included in Operating expenses and are not included in Operating lease expense in the table above. There were no ROU asset impairment charges in 2019. 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 $1.6 billion at December 31, 2020 and $1.4 billion at December 31, 2019), by equipment type. Operating Lease Equipment (dollars in millions) December 31, December 31, 2020 2019 Railcars and locomotives $ 7,098.9 $ 6,706.0 Other equipment 737.7 613.7 Total ( 1) $ 7,836.6 $ 7,319.7 (1) The following table presents Components of Net Investment in Finance Leases (dollars in millions) December 31, December 31, 2020 2019 Lease receivables $ 1,986.0 $ 1,905.3 Unguaranteed residual assets 287.4 309.4 Total net investment in finance leases 2,273.4 2,214.7 Leveraged lease net investment ( 1) 44.6 39.7 Total $ 2,318.0 $ 2,254.4 (1) leases The table that follows Lease Income (dollars in millions) Years Ended December 31, 2020 2019 Lease income – Operating leases $ 765.7 $ 800.8 Variable lease income – Operating leases ( 1) 45.2 56.9 Rental income on operating leases 810.9 857.7 Interest income - Sales type and direct financing leases 170.6 194.0 Variable lease income included in Other non-interest income ( 2) 42.8 46.0 Leveraged lease income 11.4 8.8 Total lease income $ 1,035.7 $ 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, 2020. 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 Ending December 31, 2021 $ 615.5 2022 456.1 2023 299.9 2024 192.0 2025 99.4 Thereafter 187.2 Total $ 1,850.1 Maturity Analysis of Lease Receivable Payments - Sales Type and Direct Financing Leases (dollars in millions) Years Ending December 31, 2021 $ 884.3 2022 611.1 2023 374.0 2024 184.0 2025 89.0 Thereafter 33.9 Total undiscounted cash flows 2,176.3 Difference between undiscounted cash flows and discounted cash flows 190.3 Lease receivables, at present value $ 1,986.0 |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
INVESTMENT SECURITIES | NOTE 6 — INVESTMENT SECURITIES Investments include debt and equity securities. Note 1 — Business and Summary of Significant Accounting Policies Carrying Value of Investment Securities (dollars in millions) December 31, December 31, 2020 2019 AFS Securities Debt securities $ 6,673.5 $ 6,011.8 Securities carried at fair value with changes in net income Equity securities — 47.2 Non-marketable securities ( 1) 215.5 217.8 Total investment securities $ 6,889.0 $ 6,276.8 ( 1 ) Non-marketable investments include restricted stock of the FRB and FHLB carried at cost of $181.7 million at December 31, 2020 and $187.9 million at December 31, 2019. The remaining non-marketable investments without readily determinable fair values measured under the measurement exception totaled $33.8 million at December 31, 2020 and $29.9 million at December 31, 2019. Accrued interest receivables on debt securities totaled $13.7 million and $21.5 million as of December 31, 2020 and 2019, respectively, and were included in other assets on the consolidated balance sheet. The Company had $3.8 billion and $1.7 billion of interest-bearing cash at banks at December 31, 2020 and December 31, 2019, respectively, which are cash and cash equivalents and are classified separately on the consolidated 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, 2020 2019 2018 Interest income - debt securities ( 1) $ 114.9 $ 187.9 $ 163.1 Interest income - interest-bearing cash 11.1 37.1 42.3 Dividends - equity securities 5.2 8.5 13.2 Total interest and dividends $ 131.2 $ 233.5 $ 218.6 (1) Includes interest income on securities purchased under agreement to resell and insignificant amounts of non-taxable interest income. The following table presents proceeds and realized gains (losses) from sales of debt securities AFS for the years ended December 31, 2020, 2019 and 2018, respectively. Realized Gains (Losses) and Proceeds from Sales of Debt Securities AFS (dollars in millions) Years Ended December 31, 2020 2019 2018 Proceeds from sales of debt securities AFS $ 3,066.6 $ 2,545.4 $ 338.3 Gross realized gains $ 38.1 $ 6.2 $ 23.1 Gross realized losses (1.8 ) (1.4 ) (6.6 ) Net realized gains (losses) on sales of securities available-for-sale $ 36.3 $ 4.8 $ 16.5 The following table presents amortized cost and fair value of debt securities AFS. Amortized Cost and Fair Value (dollars in millions) Amortized Cost ( 1) Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2020 Debt securities AFS Mortgage-backed securities U.S. government/sponsored agency – Residential $ 2,503.4 $ 76.5 $ (0.1 ) $ 2,579.8 U.S. government/sponsored agency – Commercial 1,725.0 56.3 (0.5 ) 1,780.8 U.S. government/sponsored agency obligations 1,474.2 0.5 (3.9 ) 1,470.8 U.S. Treasury securities 505.9 — (3.2 ) 502.7 Supranational securities 330.2 0.2 (2.9 ) 327.5 Agency asset-backed securities 1.5 0.1 — 1.6 Corporate bonds - foreign 10.3 — — 10.3 Total debt securities AFS $ 6,550.5 $ 133.6 $ (10.6 ) $ 6,673.5 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 (1 ) The amortized cost is net of the ACL. ACL relating to debt securities as of December 31, 2020 was insignificant. The following table presents the debt securities AFS by contractual maturity dates: Maturities - (dollars in millions) December 31, 2020 Amortized Cost Fair Value Weighted Average Yield Mortgage-backed securities — U.S. government/sponsored agency – Residential After 5 through 10 years $ 5.7 $ 6.0 3.09 % After 10 years 2,497.7 2,573.8 2.34 % Total 2,503.4 2,579.8 2.35 % Mortgage-backed securities — U.S. government/sponsored agency – Commercial After 1 through 5 years 32.4 35.0 3.54 % After 5 through 10 years 242.7 265.2 3.03 % After 10 years 1,449.9 1,480.6 1.73 % Total 1,725.0 1,780.8 1.95 % U.S. government/sponsored agency obligations After 1 through 5 years 420.4 420.6 0.63 % After 5 through 10 years 1,053.8 1,050.2 0.96 % Total 1,474.2 1,470.8 0.86 % U.S. Treasury securities 1 year or less 8.1 8.1 0.13 % After 1 through 5 years 104.6 104.4 0.28 % After 5 through 10 years 393.2 390.2 0.50 % Total 505.9 502.7 0.45 % Supranational securities 1 year or less 20.5 20.5 0.15 % After 1 through 5 years 56.9 57.0 0.47 % After 5 through 10 years 252.8 250.0 0.85 % Total 330.2 327.5 0.74 % Agency asset-backed securities After 10 years 1.5 1.6 2.24 % Total 1.5 1.6 2.24 % Corporate bonds — foreign 1 year or less 10.3 10.3 6.03 % Total 10.3 10.3 6.03 % Total debt securities AFS $ 6,550.5 $ 6,673.5 1.69 % At December 31, 2020 and December 31, 2019, certain debt 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, 2020 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 $ 39.3 $ (0.1 ) $ — $ — U.S. government/sponsored agency - Commercial 267.3 (0.5 ) — — U.S. government/sponsored agency obligations 628.5 (3.9 ) — — U.S. Treasury securities 489.9 (3.2 ) — — Supranational securities 245.4 (2.9 ) — — Total debt securities AFS $ 1,670.4 $ (10.6 ) $ - $ - 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 ) Purchased Credit Deteriorated AFS Securities As of December 31, 2020 and December 31, 2019, there was no balance in PCD or PCI securities. For the year ended December 31, 2018, the accretable yield on PCI securities had a beginning balance of $101.7 million. Adjustments to accretable yield primarily included accretion into interest income of $7.8 million and disposals of $93.0 million for the year ended December 31, 2018. Securities Carried at Fair Value with Changes Recorded in Net Income As of December 31, 2020, equity securities were carried at an insignificant fair value, with a cost of $0.4 million and unrealized losses of $0.4 million. As of December 31, 2019, the fair value and cost of equity securities were Impairment of Investment Securities There was a $1.7 million impairment loss recognized on debt securities AFS for the year ended December 31, 2020. There were no OTTI losses recognized for the year ended December 31, 2019 and there were insignificant OTTI losses for the year ended December 31, 2018. There were insignificant adjustments for non-marketable securities without readily determinable fair values measured under the measurement alternative for the year ended December 31, 2020. There were no adjustments for non-marketable securities without readily determinable fair values measured under the measurement alternative for the years ended December 31, 2019 and December 31, 2018. There were insignificant unrealized gain and losses on non-marketable investments as of December 31, 2020. There were insignificant unrealized losses on non-marketable investments as of December 31, 2019. The ACL relating to investment securities was insignificant as of December 31, 2020. Pledged Securities Securities with a carrying value of $1,926.2 million |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 Fair value of derivative financial instruments $ 431.6 $ 190.7 Tax credit investments ( 1) 427.0 365.6 Right of use assets 198.8 194.9 Property, furniture and fixtures 187.0 160.0 Counterparty receivables 174.1 126.5 Prepaid expenses 169.9 98.3 Intangible assets, net 134.9 66.0 Current and deferred federal and state tax assets 60.8 55.6 Other ( 2) 464.4 381.6 Total other assets $ 2,248.5 $ 1,639.2 (1) in this balance are LIHTC of $299.2 million and $263.3 million as of December 31, 2020 and December 31, 2019, respectively, that provide tax benefits to investors in the form of tax deductions from operating losses and tax credits. During 2020, 2019 and 2018, the Company recorded $27.4 million, $29.8 million and $29.1 million, respectively, in tax provisions under the proportional amortization method. During 2020, 2019 and 2018, the Company recognized total tax benefits of $35.9 million, $35.5 million and $34.2 million, respectively, which included tax credits of $26.7 million, $28.0 million, and $27.0 million recorded in income taxes. 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. Refer to Note 1 – Business and Summary of Significant Accounting Policy for additional information. See also Note 9 – Variable Interest Entities. (2 ) |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2020 | |
Deposits [Abstract] | |
DEPOSITS | NOTE 8 — DEPOSITS The following table provides detail on deposit types. Deposits — Deposit types (dollars in millions) December 31, December 31, 2020 2019 Interest-bearing $ 39,686.9 $ 33,546.4 Non-interest bearing 3,384.7 1,593.1 Total deposits $ 43,071.6 $ 35,139.5 The following table presents the maturities of time deposits. Deposits —Maturities (dollars in millions) December 31, 2020 Time deposits, remaining contractual maturity: Within one year $ 7,638.3 One to two years 1,387.0 Two to three years 434.0 Three to four years 647.4 Four to five years 315.4 Over five years 3.1 Total Time deposits $ 10,425.2 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, 2020 Time Deposits: Three months or less $ 2,243.2 After three months through six months 1,446.3 After six months through twelve months 1,539.8 After twelve months 939.8 Total $ 6,169.1 The Company also had aggregate time deposits of $2,091.8 million and $2,284.3 million in denominations of more than $250,000 at December 31, 2020 and 2019, respectively. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019, 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. 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, 2020 December 31, 2019 Securities Partnership Investment Securities Partnership Investment Agency securities $ 4,362.2 $ — $ 5,338.6 $ — Tax credit equity investments — 311.5 — 277.1 Equity investments — 111.9 — 84.0 Total Assets $ 4,362.2 $ 423.4 $ 5,338.6 $ 361.1 Commitments to tax credit investments ( 1) $ — $ 168.3 $ — $ 120.1 Total Liabilities $ — $ 168.3 $ — $ 120.1 Maximum loss exposure $ 4,362.2 $ 423.4 $ 5,338.6 $ 361.1 (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. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
BORROWINGS | NOTE 10 — BORROWINGS The following table presents the carrying value of outstanding borrowings. Borrowings (dollars in millions) December 31, 2020 December 31, 2019 CIT Group Inc. Subsidiaries Total Total Unsecured borrowings: Senior $ 3,923.3 $ 313.0 $ 4,236.3 $ 3,967.9 Subordinated notes 494.9 — 494.9 494.4 Secured borrowings: FHLB advances — 1,100.0 1,100.0 1,650.0 Other secured and structured financings — 6.1 6.1 361.1 Total borrowings $ 4,418.2 $ 1,419.1 $ 5,837.3 $ 6,473.4 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, 2020 (dollars in millions) Total 2021 2022 2023 2024 Thereafter Senior Unsecured notes $ 4,263.6 $ 500.0 $ 1,147.0 $ 750.0 $ 1,000.0 $ 866.6 Subordinated unsecured notes 500.0 — — — — 500.0 FHLB advances 1,100.0 — 1,100.0 — — — Other secured and structured financings 7.5 — — — 7.5 — Total Long-term borrowings $ 5,871.1 $ 500.0 $ 2,247.0 $ 750.0 $ 1,007.5 $ 1,366.6 Unsecured Borrowings Revolving Credit Facility The Revolving Credit Facility had a total commitment amount of $300 million at December 31, 2020, compared to $400 million at December 31, 2019. The facility was amended during the first quarter of 2020 to 1) reduce the total commitment amount by $100 million, 2) extend the final maturity date of the lenders’ commitments from March 1, 2021 to November 1, 2021, 3) reduce the Tier 1 capital ratio requirement from 9.0% to 8.5%, and 4) lower the applicable margin charged under the facility to 1.75% for LIBOR Rate loans and 0.75% for Base Rate loans. At December 31, 2020, 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 ranges from 1.0:1.0 to 1.5:1.0 based on CIT’s credit ratings and was 1.25:1.00 at December 31, 2020. The Revolving Senior Unsecured Notes On June 19, 2020, CIT Group Inc. issued $500 million aggregate principal amount of 3.929% senior unsecured fixed-to-floating rate notes due 2024 (the "Notes"). Beginning June 19, 2023 until the maturity date, the Notes will bear interest at a floating rate based on SOFR plus a margin of 3.827% payable quarterly in arrears if not called. During the second quarter of 2020, CIT Bank initiated and completed a cash tender offer to purchase up to $550 million of bank notes due in 2025, with $234.8 million tendered. Such tendering holders received the purchase price in the amount of $930 for each $ 1,000 principal amount of bank notes tendered, plus accrued and unpaid interest. CIT recognized a gain of approximately $ 15 million on the tender. 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 June 2024 3.929% June 2020 500.0 March 2025 5.250% March 2018 500.0 September 2025 2.969% September 2019 315.2 Weighted average rate and total 4.617% $ 4,212.2 On February 9, 2021, we redeemed all of the aggregate principal amount ($500 million) of outstanding 4.125% Senior Notes due March 2021 at par. 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 $40.5 million (par value of $51.4 million) that matures in 2036. The debt redemptions resulted in debt extinguishment net gains of $14.7 million for the year ended December 31, 2020 and losses of $0.5 million and $38.6 million for the years ended December 31, 2019 and 2018, 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, 2020, the Company had pledged $14.3 billion of assets to several financing facilities (including collateral for the FRB discount window that is currently not drawn) FHLB Advances The following table presents FHLB balances. FHLB Balances Summary (dollars in millions) December 31, December 31, 2020 2019 Lending Assets High Quality Liquid Securities Total Total Total borrowing capacity $ 5,494.1 $ 1,681.2 $ 7,175.3 $ 6,350.5 Less: Advances (1,100.0 ) — (1,100.0 ) (1,650.0 ) Available capacity $ 4,394.1 $ 1,681.2 $ 6,075.3 $ 4,700.5 Pledged assets (1) $ 7,083.6 $ 1,784.4 $ 8,868.0 $ 6,987.6 Weighted Average Rate 0.82 % 2.04 % (1) December 31, 2019 pledged assets included $50.4 million of HQL securities. Other Secured and Structured Financings Other secured (other than FHLB) and structured financings of CIT-owned subsidiaries totaled $6.1 million and $361.1 million at December 31, 2020 and 2019, respectively. Pledged assets related to these borrowings and the undrawn ABL facility totaled $2,486.4 million and $2,205.9 million at December 31, 2020 and 2019, respectively. The outstanding secured and structured financings as of December 31, 2020 had a weighted average rate of 4.39%, compared to a weighted average rate of 3.03% at December 31, 2019. FRB There were no outstanding borrowings with the FRB Discount Window as of December 31, 2020 and December 31, 2019. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | NOTE 11 — DERIVATIVE FINANCIAL INSTRUMENTS See Derivative Financial Instruments Recent Accounting Pronouncements sections in Note 1 — Business and Summary of Significant Accounting Policies In October 2020, the Chicago Mercantile Exchange and LCH Clearnet completed the discounting transition process for USD interest rate swaps from U.S. Federal Funds Rate to SOFR. The transition did not have a significant impact on CIT’s financial statements. In addition, on October 23, 2020, the International Swaps and Derivatives Association (“ISDA”) published the Interbank offered rate (“IBOR”) Fallbacks Supplement and IBOR Fallbacks Protocol, effective January 25, 2021. The supplement incorporates the fallbacks into new covered IBOR derivatives referencing the 2006 ISDA Definitions unless the parties specifically agree to exclude them. Supervisory authorities encourage all market participants to adhere to the protocol. CIT Bank adhered to the protocol in January 2021. The following table presents notional amount and fair value of derivative financial instruments on a gross basis. Notional Amount and Fair Value of Derivative Financial Instruments (dollars in millions) December 31, 2020 December 31, 2019 Notional Amount Asset Fair Value Liability Fair Value Notional Amount Asset Fair Value Liability Fair Value Derivatives designated as hedging instruments (Qualifying hedges) Foreign exchange contracts $ 33.9 $ - $ (0.3 ) $ 676.3 $ - $ (10.6 ) Interest rate contracts ( 1)(3) 500.0 - - 1,250.0 - - Total derivatives designated as hedging instruments 533.9 - (0.3 ) 1,926.3 - (10.6 ) Derivatives not designated as hedging instruments (Non-qualifying hedges) Interest rate contracts ( 1)(3) 21,192.9 429.6 (72.2 ) 17,588.1 176.9 (14.5 ) Foreign exchange contracts 247.8 1.7 (6.0 ) 982.9 13.7 (6.1 ) Other contracts ( 2) 875.8 0.3 (0.7 ) 714.7 0.1 (0.8 ) Total derivatives not designated as hedging instruments 22,316.5 431.6 (78.9 ) 19,285.7 190.7 (21.4 ) Gross derivatives fair values presented in the Consolidated Balance Sheets $ 22,850.4 431.6 (79.2 ) $ 21,212.0 190.7 (32.0 ) Less: Gross amounts offset in the Consolidated Balance Sheets - - - - Net amount presented in the Consolidated Balance Sheet 431.6 (79.2 ) 190.7 (32.0 ) Less: Amounts subject to master netting agreements ( 4) (4.7 ) 4.7 (11.8 ) 11.8 Less: Cash collateral pledged (received) subject to master netting agreements ( 5) - 42.9 (1.2 ) 14.3 Total net derivative fair value $ 426.9 $ (31.6 ) $ 177.7 $ (5.9 ) (1) Fair value balances include accrued interest. (2) Other derivative contracts not designated as hedging instruments include risk participation agreements. (3) The Company accounts for swap contracts cleared by the Chicago Mercantile Exchange and LCH Clearnet as “settled-to-market”. As a result, variation margin payments are characterized as settlement of the derivative exposure and variation margin balances are netted against the corresponding derivative mark-to-market balances. Gross amounts of recognized assets and liabilities were lowered by $20.5 million and $339.9 million, respectively at December 31, 2020 and $16.2 million and $142.8 million, respectively at December 31, 2019. (4) The Company’s derivative transactions are governed by ISDA agreements that allow for net settlements of certain payments as well as offsetting of all contracts with a given counterparty in the event of bankruptcy or default of one of the two parties to the transaction. We believe our ISDA agreements meet the definition of a master netting arrangement or similar agreement for purposes of the above disclosure. (5) In conjunction with the ISDA agreements described above, the Company has entered into collateral arrangements with its counterparties, which provide for the exchange of cash depending on change in the market valuation of the derivative contracts outstanding. Such collateral is available to be applied in settlement of the net balances upon an event of default of one of the counterparties. Qualifying Hedges 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 fair value hedges. The following table represents gains (losses) of fair value hedges recognized as interest expense on the consolidated statements of operations. Gains (Losses) on Qualifying Hedges (dollars in millions) Years Ended December 31, 2020 2019 2018 Recognized on derivatives ( 1) $ 0.2 $ 3.6 $ 0.3 Recognized on hedged item (0.2 ) (3.6 ) (0.3 ) Net recognized on fair value hedges (No ineffectiveness) $ - $ - $ - (1) Gains (losses) exclude amounts related to interest settlements on derivatives. The following table presents the carrying value of hedged items and associated cumulative hedging adjustment related to fair value hedges. Cumulative Fair Value Hedging Adjustments (dollars in millions) Cumulative Fair Value Hedging Adjustment Included in the Carrying Value of Hedged Items Carrying Value of Hedged Items ( 1) Currently Designated No Longer Designated December 31, 2020 Long-term Debt $ 1,534.4 $ 1.1 $ 1.8 December 31, 2019 Long-term Debt $ 1,747.0 $ 2.1 $ 1.5 (1) Carrying value includes $1,033.9 million The following table presents the pre-tax net gains (losses) recorded in the consolidated statements of operations and the consolidated statements of comprehensive income (loss) 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 Amounts Recorded in Other Reclassified from Comprehensive Total Change in AOCI to Income Income AOCI for Period Contract Type Year ended December 31, 2020 Foreign currency forward contracts - net investment hedges $ - $ (2.8 ) $ (2.8 ) 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 Non-Qualifying Hedges The following table presents gains (losses) of non-qualifying hedges recognized as other non-interest income on the consolidated statements of operations. Gains (Losses) on Non-Qualifying Hedges (dollars in millions) Years Ended December 31, 2020 2019 2018 Interest rate contracts $ 17.3 $ 11.7 $ 17.1 Foreign currency forward contracts (12.8 ) 25.5 (13.5 ) Other contracts (0.5 ) 1.7 13.2 Total non-qualifying hedges – statement of operations impact $ 4.0 $ 38.9 $ 16.8 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. Both were terminated in 2018. The exercise of BV’s option to terminate the Dutch TRS Facility prior to maturity required an $85.6 million payment, representing the present value of the remaining facility 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 2018. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 Accrued expenses and accounts payable $ 546.4 $ 565.4 Lease liabilities 249.9 242.6 Commitment to fund tax credit investments 167.7 119.5 Current and deferred taxes payable 122.1 167.2 Accrued interest payable 88.2 92.9 Fair value of derivative financial instruments 79.2 32.0 Allowance for off-balance sheet credit exposure 78.3 37.1 Other ( 1 ) 423.1 448.0 Total other liabilities $ 1,754.9 $ 1,704.7 (1) |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2020 | |
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 The Company considered the impact of the COVID-19 pandemic on the markets related to the Company’s assets and liabilities for the purpose of fair value measurement. The Company observed increased volatility in those markets with significant effects on market prices and interest rates, in addition to significant decreases in the level of activity in the markets for its assets and liabilities. However, the Company did not identify persuasive evidence to conclude that the markets were not orderly. As a result, the fair value of the Company’s assets and liabilities were measured based on market conditions that existed as of December 31, 2020. 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, 2020 Assets Residential MBS – U.S. government/sponsored agency $ 2,579.8 $ — $ 2,579.8 $ — U.S. treasury securities 502.7 7.8 494.9 — Other securities 3,591.0 — 3,580.7 10.3 Total debt securities AFS 6,673.5 7.8 6,655.4 10.3 Securities carried at fair value with changes recorded in net income — — — — Interest rate contracts — non-qualifying hedges 429.6 — 428.1 1.5 Other derivative — non-qualifying hedges 2.0 — 1.7 0.3 Total derivative assets at fair value — non-qualifying hedges (1) 431.6 — 429.8 1.8 Total $ 7,105.1 $ 7.8 $ 7,085.2 $ 12.1 Liabilities Interest rate contracts — non-qualifying hedges $ (72.2 ) $ — $ (72.2 ) $ — Other derivative— non-qualifying hedges (6.7 ) — (6.0 ) (0.7 ) Total derivative liabilities at fair value — non-qualifying hedges (1) (78.9 ) — (78.2 ) (0.7 ) Foreign currency forward contracts — net investment qualifying hedges (0.3 ) — (0.3 ) — Total derivative liabilities at fair value — qualifying hedges (0.3 ) — (0.3 ) — Total $ (79.2 ) $ — $ (78.5 ) $ (0.7 ) 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 ) (1) Derivative fair values include accrued interest. 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 for details on significant inputs and valuation techniques. See 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 was measured at fair value at each reporting date until the contingency was resolved. Due to the significant unobservable inputs used, these measurements were classified as Level 3. The FDIC True-up liability was settled in April 2020. 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. 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, 2020 Assets Debt Securities — AFS $ 10.3 Discounted cash flow Discount Rate 8.5% - 10.4% 9.5% Derivative assets — non qualifying 1.8 Internal valuation model Borrower Rate 1.9% - 3.6% 2.7% Total Assets $ 12.1 Liabilities Derivative liabilities — non-qualifying $ (0.7 ) Internal valuation model Total Liabilities $ (0.7 ) 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 ) 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 Derivative Assets- Non- Qualifying Derivative Liabilities- Non- Qualifying FDIC True-up Liability Balance as of December 31, 2019 $ 67.1 $ 0.3 $ (0.8 ) $ (68.8 ) Included in earnings 0.1 1.5 0.1 (0.2 ) Included in comprehensive income (1.2 ) — — — Maturity and settlements (54.0 ) — — 69.0 Impairment (1.7 ) — — — Balance as of December 31, 2020 $ 10.3 $ 1.8 $ (0.7 ) $ — 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 ) 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. The Company performed its annual goodwill impairment test during the fourth quarter of 2020. Based on our annual assessment, a full impairment was taken on the goodwill. See Note 25 – Goodwill and Intangible Assets The following table presents carrying value of assets measured at estimated fair value on a non-recurring basis for which gains and losses from a non-recurring fair value adjustment have been recorded in the periods. Assets Measured at Fair Value on a Non-recurring Basis (dollars in millions) Fair Value Measurements Total Level 1 Level 2 Level 3 Total Gains (Losses) December 31, 2020 Assets held for sale $ 701.6 $ — $ — $ 701.6 $ (112.7 ) Loans 106.4 — — 106.4 (55.6 ) Mortgage servicing rights 4.3 — — 4.3 (4.5 ) ROU assets 4.4 — — 4.4 (6.1 ) Total $ 816.7 $ — $ — $ 816.7 $ (178.9 ) 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 ) 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 — The fair value of Level 2 assets was primarily estimated based on the prices of recent trades of similar assets. The fair value of Level 3 assets was valued under the income approach using the discounted cash flow model based on level 3 inputs including discount rate. Loans — Loans that are collateral-dependent were measured based on the fair value of the underlying collateral less costs to sell. These loans are classified as Level 3 as the fair value of underlying collateral is estimated primarily based on third party appraisals or opinions adjusted for the Company’s experience with liquidation value. Mortgage Servicing Rights — Under the amortization method, the carrying value of the MSRs was reduced to its fair value for the impairment loss recognized. The fair value of the MSRs was valued under the income approach using the discounted cash flow model based on level 3 inputs including prepayment speed, discount rates and cost to service. ROU Assets — During 2020, the Company recognized an impairment loss on ROU assets for certain leased facilities. The fair value of ROU assets was measured based on the discounted cash flows of estimated rental income for the office space to be subleased, using market participant assumptions. As unobservable inputs are used, ROU assets are classified as Level 3. See for details. 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 for methods and assumptions used. Tax Credit Investments — The fair value was estimated based on remaining future tax benefits and Level 3 inputs including market yields of comparable investments. During the fourth quarter of 2019, the Company recognized an impairment loss of $5.1 million on certain 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. Carrying Value and Fair Value of Financial Instruments (dollars in millions) Estimated Fair Value Carrying Value Level 1 Level 2 Level 3 Total December 31, 2020 Financial Assets Cash and interest bearing deposits $ 4,011.7 $ 4,011.7 $ — $ — $ 4,011.7 Assets held for sale (excluding leases) 720.0 — 14.5 706.2 720.7 Loans (excluding leases) (1) 32,812.9 — 1,332.1 32,285.4 33,617.5 Securities purchased under agreements to resell 150.0 — 150.0 — 150.0 Investment securities (2) 215.5 — — 215.5 215.5 Financial Liabilities Deposits (3) (43,086.0 ) — — (43,224.0 ) (43,224.0 ) Borrowings (3) (5,911.1 ) — (6,371.3 ) (8.0 ) (6,379.3 ) Credit balances of factoring clients (1,719.9 ) — — (1,719.9 ) (1,719.9 ) 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) (1) 28,297.4 — 1,114.5 27,684.3 28,798.8 Securities purchased under agreement to resell 950.0 — 950.0 — 950.0 Investment securities (2) 217.8 — — 217.8 217.8 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 ) (1) Carrying value of loans (excluding leases) is net of the ACL. (2) Non-marketable investments carried at cost. See Assets and Liabilities Measured at Fair Value on a Recurring Basis in this note above for debt securities AFS and securities carried at fair value with changes recorded in net income. (3) Deposits and borrowings include accrued interest, which is included in Other liabilities. The methods and assumptions used to estimate the fair value of each class of financial instruments not measured at fair value are as follows: Loans — Loans are generally valued by discounting expected cash flows using market inputs with adjustments based on cohort level assumptions for certain loan types as well as internally developed estimates at a business segment level. Due to the significance of the unobservable market inputs and assumptions, as well as the absence of a liquid secondary market for most loans, these loans are classified as Level 3. Certain loans are measured based on observable market prices sourced from external data providers and classified as Level 2. Nonaccrual loans are written down and reported at their estimated recovery value which approximates their fair value and classified as Level 3. Securities Purchased Under Agreement to Resell — The fair value of securities purchased under agreement to resell (reverse repo) 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 – — Utilize Level 3 inputs to estimate fair value and were generally recorded under the measurement alternative. FHLB and FRB stock carrying values approximate fair value. Of the remaining non-marketable securities, the fair value is determined based on techniques that use significant assumptions that are not observable in the market. 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 was estimated based on a discounted cash flow technique using Level 3 inputs appropriate to the contractual maturity. Borrowings The Level 2 fair value of borrowings included: ▪ Unsecured debt — consists of both senior debt and subordinated debt. Unsecured debt was valued using observable market prices of identical instruments . ▪ Secured borrowings — consists of FHLB advances. The estimated fair value of FHLB advances was based on a discounted cash flow technique. The cash flows were calculated using the contractual features of the advance and then discounted using observable market . The Level 3 fair value of borrowings included: ▪ Secured borrowings — consists of structured financings and other secured borrowings. The fair value of structured financings was estimated based on a discounted cash flow technique using observable market interest rates adjusted for estimated spreads. The fair value of other secured borrowings was estimated based on unobservable inputs. 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, 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, 2020 | |
Stockholders Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 14 — STOCKHOLDERS' EQUITY In conjunction with the MOB Acquisition, consideration paid included the issuance of approximately 3.1 million shares of CIT Group Inc. common stock. A roll forward of common stock is presented in the following table. Issued Less Treasury Outstanding Common stock - December 31, 2019 162,188,287 (67,445,723 ) 94,742,564 Common stock issuance - acquisition - 3,094,697 3,094,697 Restricted stock issued 923,505 - 923,505 Shares held to cover taxes on vesting restricted shares and other - (349,440 ) (349,440 ) Employee stock purchase plan participation 198,069 - 198,069 Common stock - December 31, 2020 163,309,861 (64,700,466 ) 98,609,395 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 $171.5 million and $146.7 million during 2020 and 2019, 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, 2020 December 31, 2019 Gross Unrealized Income Taxes Net Unrealized Gross Unrealized Income Taxes Net Unrealized Foreign currency translation adjustments $ (2.6 ) $ (6.5 ) $ (9.1 ) $ (1.9 ) $ (7.2 ) $ (9.1 ) Changes in benefit plans net loss and prior service (cost)/credit (42.5 ) (3.6 ) (46.1 ) (51.3 ) (1.3 ) (52.6 ) Net gains (loss) on securities AFS 123.0 (32.1 ) 90.9 13.6 (4.0 ) 9.6 Total accumulated other comprehensive income (loss) $ 77.9 $ (42.2 ) $ 35.7 $ (39.6 ) $ (12.5 ) $ (52.1 ) 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, 2019 $ (9.1 ) $ (52.6 ) $ 9.6 $ (52.1 ) AOCI activity before reclassifications — 6.1 108.9 115.0 Amounts reclassified from AOCI — 0.4 (27.6 ) (27.2 ) Net current period AOCI — 6.5 81.3 87.8 Balance as of December 31, 2020 $ (9.1 ) $ (46.1 ) $ 90.9 $ 35.7 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 ) Other Comprehensive Income (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, 2020 2019 Gross Amount Tax Net Amount Gross Amount Tax Net Amount Income Statement Line Item Foreign currency translation adjustments gains (losses) AOCI activity before reclassification $ (0.7 ) $ 0.7 $ — $ 4.8 $ 7.0 $ 11.8 Net change (0.7 ) 0.7 — 4.8 7.0 11.8 Changes in benefit plan net loss and prior service (cost)/credit losses AOCI activity before reclassification 8.3 (2.2 ) 6.1 23.6 (6.0 ) 17.6 Reclassifications Out of AOCI 0.5 (0.1 ) 0.4 — — — Operating expenses Net change 8.8 (2.3 ) 6.5 23.6 (6.0 ) 17.6 Unrealized net gains on securities AFS AOCI activity before reclassification 146.5 (37.6 ) 108.9 135.5 (35.1 ) 100.4 Reclassifications Out of AOCI (37.1 ) 9.5 (27.6 ) (4.8 ) 1.2 (3.6 ) Other non-interest income Net change 109.4 (28.1 ) 81.3 130.7 (33.9 ) 96.8 Net current period OCI $ 117.5 $ (29.7 ) $ 87.8 $ 159.1 $ (32.9 ) $ 126.2 |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 31, 2020 | |
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 rules for assessing adequacy of capital for the Company and CIT Bank, respectively. The regulatory capital rules applicable to the Company and the Bank were the Basel III Rule and the Simplification Final Rule for the period ended December 31, 2020, and the Basel III Rule and the Transition Final Rule for the period ended December 31, 2019. CIT and CIT Bank are also subject to certain capital ratio requirements based on Regulation Y for Bank Holding Companies (“BHC”) and the FDIC’s Prompt Corrective Action (“PCA”) framework. CIT Group and CIT Bank capital ratios were all in excess of minimum capital ratios to be considered well-capitalized under Regulation Y and the PCA framework, respectively, at December 31, 2020 and 2019. During 2020, the OCC, FRB and FDIC collectively adopted a rule that allows banking organizations to delay for two years the impact of CECL’s effect on regulatory capital, followed by a three-year five-year 25% 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, 2020 2019 2020 2019 Common Equity Tier 1 Capital $ 5,192.8 $ 5,444.4 $ 4,907.7 $ 4,879.6 Tier 1 Capital 5,717.8 5,969.3 4,907.7 4,879.6 Total Capital 6,863.2 6,983.3 5,760.1 5,644.3 Risk-Weighted Assets 51,847.0 45,262.0 43,962.5 37,150.5 Common Equity Tier 1 Capital Ratio: Actual 10.0 % 12.0 % 11.2 % 13.1 % Effective minimum ratios under Basel III guidelines ( 1) 7.0 % 7.0 % 7.0 % 7.0 % BHC and PCA Well-Capitalized (2) (2) 6.5 % 6.5 % Tier 1 Capital Ratio: Actual 11.0 % 13.2 % 11.2 % 13.1 % Effective minimum ratios under Basel III guidelines ( 1) 8.5 % 8.5 % 8.5 % 8.5 % BHC and PCA Well-Capitalized 6.0 % 6.0 % 8.0 % 8.0 % Total Capital Ratio: Actual 13.2 % 15.4 % 13.1 % 15.2 % Effective minimum ratios under Basel III guidelines ( 1) 10.5 % 10.5 % 10.5 % 10.5 % BHC and PCA Well-Capitalized 10.0 % 10.0 % 10.0 % 10.0 % Tier 1 Leverage Ratio: Actual 9.5 % 11.9 % 8.9 % 11.0 % Required minimum ratio for capital adequacy purposes ( 1) 4.0 % 4.0 % 4.0 % 4.0 % BHC and PCA Well-Capitalized (2) (2) 5.0 % 5.0 % (1) Required minimum ratios include stated minimums of 4.5%, 6% and 8% for CET1 capital, Tier 1 capital and Total capital ratios, respectively, plus the fully phased-in capital conservation buffer of 2.5%. (2) |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 2018 (Loss) income from continuing operations $ (615.3 ) $ 529.4 $ 472.1 Preferred stock dividends 31.1 18.9 18.9 (Loss) income from continuing operations available to common shareholders (646.4 ) 510.5 453.2 Income (loss) from discontinued operations - 0.5 (25.0 ) Net (loss) income available to common shareholders $ (646.4 ) $ 511.0 $ 428.2 Weighted Average Common Shares Outstanding Basic shares outstanding 98,405 96,503 117,653 Stock-based awards ( 1 )(2 ) - 418 1,124 Diluted shares outstanding 98,405 96,921 118,777 Basic Earnings Per Common Share Data (Loss) income from continuing operations $ (6.57 ) $ 5.29 $ 3.85 Income (loss) from discontinued operations - 0.01 (0.21 ) Basic (loss) income per common share $ (6.57 ) $ 5.30 $ 3.64 Diluted Earnings Per Common Share Data ( 2) (Loss) income from continuing operations $ (6.57 ) $ 5.27 $ 3.82 Loss from discontinued operations - - (0.21 ) Diluted (loss) income per common share $ (6.57 ) $ 5.27 $ 3.61 (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 0.9 million, 0.8 million, and 0.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. (2) Due to the net loss for the year ended December 31, 2020, the diluted earnings per share calculation excluded an insignificant amount of weighted average restricted shares, performance shares, and options, as they were anti-dilutive. The basic weighted average shares outstanding and net loss for the year ended December 31, 2020 were utilized for the diluted earnings per share calculation. |
Non-Interest Income
Non-Interest Income | 12 Months Ended |
Dec. 31, 2020 | |
Noninterest Income [Abstract] | |
Non-Interest Income | NOTE 17 — NON-INTEREST INCOME Non-interest Income (dollars in millions) Years Ended December 31, 2020 2019 2018 Rental income on operating leases $ 810.9 $ 857.7 $ 1,009.0 Other non-interest income 540.5 415.2 373.8 Total non-interest income $ 1,351.4 $ 1,272.9 $ 1,382.8 Other non-interest income Fee income $ 133.2 $ 116.7 $ 103.5 Gains on leasing equipment, net of impairments 92.5 71.1 59.5 Factoring commissions 83.3 98.8 102.4 BOLI income 39.9 29.1 25.5 Gains on investment securities, net of impairments 38.1 6.2 15.3 Property tax income 17.9 22.2 - Other income 135.6 71.1 67.6 Total other non-interest income $ 540.5 $ 415.2 $ 373.8 |
Non-Interest Expenses
Non-Interest Expenses | 12 Months Ended |
Dec. 31, 2020 | |
Noninterest Expense [Abstract] | |
Non-Interest Expenses | NOTE 18 — NON-INTEREST EXPENSES Non-Interest Expense (dollars in millions) Years Ended December 31, 2020 2019 2018 Depreciation on operating lease equipment $ 327.4 $ 308.6 $ 311.1 Maintenance and other operating lease expenses 212.5 180.7 230.4 Operating expenses 1,309.9 1,113.2 1,070.0 Goodwill impairment 485.1 - - (Gain) loss on debt extinguishments and deposit redemptions (14.7 ) 0.5 38.6 Total non-interest expenses $ 2,320.2 $ 1,603.0 $ 1,650.1 Operating expenses Compensation and benefits $ 649.4 $ 566.8 $ 558.4 Technology 157.0 135.8 131.5 Professional fees 104.3 75.9 82.7 Net occupancy expense 93.5 91.3 65.6 Insurance 81.5 51.1 68.3 Restructuring costs 37.2 15.1 - Advertising and marketing 34.1 40.4 47.6 Intangible asset amortization 33.9 23.2 23.9 Property tax expense 19.1 24.1 - Other expenses 99.9 89.5 92.0 Total operating expenses $ 1,309.9 $ 1,113.2 $ 1,070.0 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 2018 U.S. operations $ (759.2 ) $ 609.2 $ 471.4 Non-U.S. operations 55.8 14.7 165.6 Income from continuing operations before provision / (benefit) for income taxes $ (703.4 ) $ 623.9 $ 637.0 The provision (benefit) for income taxes is comprised of the following: Provision (Benefit) for Income Taxes (dollars in millions) Years Ended December 31, 2020 2019 2018 Current U.S. federal income tax provision / (benefit) $ (16.0 ) $ (10.9 ) $ 29.5 Deferred U.S. federal income tax provision / (benefit) (52.2 ) 118.1 56.1 Total federal income tax provision / (benefit) (68.2 ) 107.2 85.6 Current state and local income tax provision / (benefit) 22.3 (2.1 ) 8.4 Deferred state and local income tax provision / (benefit) (44.9 ) 51.4 24.8 Total state and local income tax provision / (benefit) (22.6 ) 49.3 33.2 Total non-U.S. income tax provision / (benefit) 2.7 (61.8 ) 37.6 Total provision / (benefit) for income taxes $ (88.1 ) $ 94.7 $ 156.4 Continuing operations $ (88.1 ) $ 94.5 $ 164.9 Discontinued operations — 0.2 (8.5 ) Total provision / (benefit) for income taxes $ (88.1 ) $ 94.7 $ 156.4 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 2020 2019 2018 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 $ (703.4 ) $ (147.7 ) 21.0 % $ 623.9 $ 131.1 21.0 % $ 637.0 $ 133.8 21.0 % Increase (decrease) due to: State and local income taxes, net of federal income tax (benefit) provision — (30.5 ) 4.3 % — 32.1 5.1 % — 30.2 4.7 % Non-deductible goodwill — 80.8 (11.5 )% — — — % — — — % Domestic tax credits — (12.6 ) 1.8 % — (11.1 ) (1.8 )% — (13.2 ) (2.1 )% Deferred tax asset adjustment — 21.2 (3.0 )% — — — % — — — % Effect of tax law changes — (1.7 ) 0.3 % — — — % — — — % Difference in tax rates applicable to non-U.S. earnings — 0.4 (0.1 )% — (1.4 ) (0.2 )% — 7.2 1.1 % International income subject to U.S. tax — — — % — 1.1 0.2 % — 8.7 1.4 % Unrecognized tax expense (benefit) — (3.6 ) 0.5 % — (12.1 ) (1.9 )% — 1.5 0.2 % Deferred income taxes on international unremitted earnings — — — (53.4 ) (8.6 )% — 12.4 1.9 % International restructuring — — — — — % — 13.6 2.2 % Valuation allowances — (1.0 ) 0.1 % — (10.0 ) (1.6 )% — (28.9 ) (4.4 )% Other — 6.6 (0.9 )% — 18.2 2.9 % — (0.4 ) (0.1 )% Effective Tax Rate — continuing operations $ (88.1 ) 12.5 % $ 94.5 15.1 % $ 164.9 25.9 % Discontinued Operation Federal income tax rate $ — $ — — % $ 0.7 $ 0.1 21.0 % $ (33.4 ) $ (7.0 ) 21.0 % Increase (decrease) due to: State and local income taxes, net of federal income tax benefit — — — % — 0.1 4.7 % — (1.5 ) 4.3 % Effective Tax Rate — discontinued operations $ — — % $ 0.2 25.7 % $ (8.5 ) 25.3 % Total Effective Tax Rate $ (88.1 ) 12.5 % $ 94.7 15.2 % $ 156.4 25.9 % 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, 2020 2019 Deferred Tax Assets: Net operating loss (NOL) carry forwards $ 410.7 $ 686.2 Basis difference in loans 101.7 177.6 Provision for credit losses 313.7 130.6 Accrued liabilities and reserves 100.3 87.2 Deferred stock-based compensation 14.9 18.0 Domestic tax credits 102.7 117.3 Capital loss carryforward 2.8 2.5 Goodwill and intangible assets 18.9 — Capitalized costs 218.0 — Other 61.9 48.3 Total gross deferred tax assets 1,345.6 1,267.7 Deferred Tax Liabilities: Operating leases (1,214.0 ) (1,153.4 ) Loans and direct financing leases (23.6 ) (20.8 ) Basis difference in federal home loan bank stock (5.5 ) (5.5 ) Non-U.S. unremitted earnings — (0.6 ) Unrealized net gains on securities AFS (30.4 ) (5.7 ) Goodwill and intangibles — (23.3 ) Other (29.3 ) (25.0 ) Total deferred tax liabilities (1,302.8 ) (1,234.3 ) Total net deferred tax asset before valuation allowances 42.8 33.4 Less: valuation allowances (111.0 ) (198.5 ) Net deferred tax liability after valuation allowances $ (68.2 ) $ (165.1 ) Net Operating Loss Carryforwards and Valuation Adjustments As of December 31, 2020, CIT has deferred tax assets ("DTAs") from continuing operations totaling $410.7 million on its global NOLs. This includes: (1) a DTA of $208.6 million relating to its cumulative U.S. federal NOLs of $1.0 billion; (2) DTAs of $192.9 million relating to cumulative state NOLs of $3.2 billion, including amounts of reporting entities that file in multiple jurisdictions, and (3) DTAs of $9.2 million relating to cumulative non-U.S. NOLs of $36.9 million. The U.S. federal NOLs will begin to expire in 2029, state NOLs will begin to expire in 2021. Non-U.S. NOLs are fully valued. During 2020, the Company determined that the likelihood of utilizing NOLs from certain states is remote and therefore those state NOLs are considered worthless. As such, the Company wrote-off $85.0 million of the DTA relating to those state NOLs and reversed $85.0 million of the corresponding VA. During 2020, Management updated the Company's long-term forecast of future U.S. federal taxable income. The updated forecast continues to support the realization of the U.S. federal DTAs on NOLs and therefore no VA is necessary. However, a VA of $97.1 million was retained on U.S. state DTAs relating to certain state NOLs as of December 31, 2020. During 2020, the Company released the remaining $0.4 million and $0.1 million of U.S. federal and state VA, respectively, on the DTA established on capital loss carryforwards, down from $0.5 million in 2019. The reduction was attributable to net capital gains recognized in 2020 in the normal course of business. 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 $13.9 million against certain non-U.S. reporting entities' net DTAs at December 31, 2020, down from $14.8 million at December 31, 2019. 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. As of December 31, 2020, the Company has deferred tax assets of $102.7 from its domestic tax credits. This includes: (1) DTAs of $92.4 million from federal tax credits and (2) DTAs of $10.3 from state tax credits. The federal tax credits and state tax credits begin to expire in 2035 and 2025 respectively. 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. Liabilities 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, 2019 $ 13.4 $ 6.5 $ 19.9 Additions for tax positions related to prior years 1.0 0.9 1.9 Reductions for tax positions of prior years (0.5 ) (0.3 ) (0.8 ) Expiration of statutes of limitations (3.8 ) (0.9 ) (4.7 ) Settlements 0.2 0.1 0.3 Foreign currency revaluation 0.1 — 0.1 Balance at December 31, 2020 $ 10.4 $ 6.3 $ 16.7 During the year ended December 31, 2020, the Company recorded a net $3.2 million decrease in unrecognized tax benefits ("UTBs"), including interest and penalties. The majority of the net decrease is related to the reversal of a state position due to the expiration of the statute of limitations. During the year ended December 31, 2020, the Company recognized $0.2 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 state position due to the expiration of statute of limitations. As of December 31, 2020, the accrued liability for interest and penalties is $6.3 million. The Company recognizes accrued interest and penalties on UTBs in income tax expense. The entire $16.7 million of UTBs including interest and penalties at December 31, 2020, 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. December 31, Jurisdiction 2020 U.S. Federal 2017 New York State and City 2015 California 2014 Canada 2012 The Company and its subsidiaries are under examination federally, in various states, provinces and countries for years ranging from 2012 through 2019. 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, 2020 | |
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 2.16%, 2.98% and 2.60% for the years ended December 31, 2020, 2019 and 2018, 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. 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 2020 2019 2020 2019 Change in benefit obligation Benefit obligation at beginning of year $ 425.8 $ 414.0 $ 31.3 $ 29.8 Interest cost 12.2 15.8 0.9 1.2 Actuarial (gain) / loss 21.5 26.5 2.2 3.1 Benefits paid (27.1 ) (29.7 ) (3.3 ) (3.9 ) Other (1.0 ) (0.8 ) 1.0 1.1 Benefit obligation at end of year 431.4 425.8 32.1 31.3 Change in plan assets Fair value of plan assets at beginning of period 379.8 333.4 — — Actual return on plan assets 50.0 70.0 — — Employer contributions 7.0 6.9 2.3 2.8 Benefits paid (27.2 ) (29.7 ) (3.3 ) (3.9 ) Other (1.0 ) (0.8 ) 1.0 1.1 Fair value of plan assets at end of period 408.6 379.8 — — Funded status at end of year ( 1) $ (22.8 ) $ (46.0 ) $ (32.1 ) $ (31.3 ) Information for pension plans with a benefit obligation in excess of plan assets Projected benefit obligation $ 78.4 $ 425.8 $ 32.1 $ 31.3 Accumulated benefit obligation $ 78.4 $ 425.8 N/A N/A Fair value of plan assets $ — $ 379.8 N/A N/A N/A – Not Applicable (1) Company assets of $ 78.6 million and $ 79.3 million as of December 31, 20 20 and 201 9 , respectively, related to the non-qualified U.S. 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 2020 2019 2018 2020 2019 2018 Interest cost $ 12.2 $ 15.8 $ 14.7 $ 0.9 $ 1.2 $ 1.2 Expected return on plan assets (18.2 ) (16.7 ) (18.9 ) — — — Other ( 1) 1.5 2.0 1.3 (0.8 ) (1.9 ) (1.0 ) Net periodic benefit cost (credit) (4.5 ) 1.1 (2.9 ) 0.1 (0.7 ) 0.2 Other Changes in Plan Assets and Benefit Obligations Recognized in OCI Net loss/(gain) (10.3 ) (26.8 ) 26.2 2.2 3.1 (4.1 ) Amortization, settlement or curtailment recognition (1.5 ) (2.0 ) (1.3 ) 0.8 1.9 1.0 Total recognized in OCI (11.8 ) (28.8 ) 24.9 3.0 5.0 (3.1 ) Total recognized in net periodic benefit cost and OCI $ (16.3 ) $ (27.7 ) $ 22.0 $ 3.1 $ 4.3 $ (2.9 ) The net (gain)/loss recognized in OCI for the years ended December 31, 2020, 2019 and 2018 are primarily due to the following factors: Significant Gains and Losses Affecting the Benefit Obligation (dollars in millions) 2020 2019 2018 Asset (Gains)/Losses $ (31.7 ) $ (53.3 ) $ 42.2 Discount Rate Decrease/(Increase) 32.6 39.0 (21.5 ) Interest Crediting Rate (Decrease)/Increase (6.4 ) (8.3 ) 4.3 Other (6.3 ) (6.2 ) (0.1 ) (Increase)/Decrease in OCI $ (11.8 ) $ (28.8 ) $ 24.9 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 2020 2019 2020 2019 Discount rate 2.21 % 3.00 % 2.25 % 3.00 % Interest crediting rate 1.00 % 1.75 % N/A N/A Pre-65 N/A N/A 5.60 % 5.80 % Post-65 N/A N/A 6.00 % 6.50 % 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 2020 2019 2020 2019 Discount rate 3.00 % 4.00 % 3.00 % 4.00 % Expected long-term return on plan assets 5.00 % 5.25 % N/A N/A Interest crediting rate 1.75 % 2.75 % 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 policy targets a percentage of 24% in growth assets (split among 7.2% international equity, 7.2% US equity, 4.8 % global equity, 4.8 % other fixed income) and 76 % in liability-hedging assets. Tolerances are +/- 5 % on the growth and liability hedging portfolios. The policy also 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 Pension 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. The tables below set forth asset fair value measurements. Fair Value Measurements (dollars in millions) December 31, 2020 Level 1 Level 2 Level 3 Not Classified ( 1 ) Total Fair Value Cash $ 4.4 $ — $ — $ — $ 4.4 Common Collective Trust, measured at NAV — — — 404.2 404.2 $ 4.4 $ — $ — $ 404.2 $ 408.6 December 31, 2019 Cash $ 1.6 $ — $ — $ — $ 1.6 Common Collective Trust, measured at NAV — — — 378.2 378.2 $ 1.6 $ — $ — $ 378.2 $ 379.8 (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 $8.1 million during 2021. 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 2021 $ 27.8 $ 2.4 $ 0.2 2022 26.5 2.3 0.1 2023 27.3 2.2 0.1 2024 26.3 2.1 0.1 2025 27.5 2.1 0.1 2026 – 2030 127.0 9.5 0.2 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 $16.6 million, $20.5 million, and $19.2 million for the years ended December 31, 2020, 2019 and 2018, 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, 2020, the total number of shares that may be issued under the 2016 Plan was 2,700,052 (excludes 2,123,831 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. CIT issues new shares for the settlement of vested awards. Operating expenses includes $32.7 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, 2020, including $32.1 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 $44.2 million and $38.8 million for the years ended December 31, 2019 and 2018, respectively. Total unrecognized compensation cost related to nonvested awards was $20.0 million at December 31, 2020. This cost is expected to be recognized over a weighted average period of 1.77 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 198,069, 64,078 and 61,722 shares were purchased under the plan in 2020, 2019 and 2018, 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 2020 and 2019 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 2020 and 2019, 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 2020 and 2019 may be earned at the end of a three-year The fair value of RSUs and PSUs that vested and settled in stock during 2020, 2019 and 2018 was $36.9 million, $51.1 million and $72.8 million, respectively. The following tables summarize restricted stock and RSU activity for 2020 and 2019: Stock and Cash — Settled Awards Outstanding Stock-Settled Awards Cash-Settled Awards December 31, 2020 Number of Shares Weighted Average Grant Date Value Number of Shares Weighted Average Grant Date Value Unvested at beginning of period 1,806,252 $ 50.14 11,974 $ 50.86 Vested / unsettled awards at beginning of period 207,797 41.58 — — PSUs - granted to employee 191,624 49.77 — — PSUs - incremental for performance above 2012-14 targets (35,769 ) 41.84 — — RSUs - granted to employees 903,846 45.69 — — RSUs - granted to directors 77,354 15.00 26,119 14.74 Forfeited / cancelled (103,781 ) 48.97 — — Vested / settled awards (923,492 ) 45.17 (9,857 ) 50.37 Vested / unsettled awards (202,243 ) 51.06 — — Unvested at end of period 1,921,588 $ 48.18 28,236 $ 17.62 December 31, 2019 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 |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS | NOTE 21 — COMMITMENTS The accompanying table summarizes credit-related commitments and other purchase and funding commitments. Commitments (dollars in millions) December 31, 2020 December 31, 2019 Due to Expire Within One Year After One Year Total Outstanding Total Outstanding Financing Commitments Financing assets (excluding leases) $ 2,813.4 $ 4,894.9 $ 7,708.3 $ 6,459.7 Letters of credit Standby letters of credit 27.3 232.3 259.6 199.6 Other letters of credit 5.1 3.9 9.0 6.7 Deferred purchase agreements 1,929.4 — 1,929.4 2,060.6 Purchase and Funding Commitments Lessor commitments (1) $ 628.3 $ — $ 628.3 $ 813.7 (1) CIT’s purchase and funding commitments relate to the equipment leasing businesses’ commitments to fund finance leases and operating leases, and Rail’s railcar manufacturer purchase commitments. Financing Commitments 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, 2020, substantially all undrawn financing commitments were senior facilities. Most of the Company’s undrawn and available financing commitments are in the Commercial Banking segment. 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 are issued by CIT to guarantee payment to 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 a guarantee provided in conjunction with factoring, whereby CIT provides a client with credit protection for trade receivables without purchasing the receivables. The trade receivable terms generally require payment in 90 days or less. If the client’s customer is unable to pay an undisputed receivable solely as the result of credit risk, CIT is then required to purchase the receivable from the client, less any borrowings for such client. The outstanding amount in the table above, less $157.9 million and $139.5 million at December 31, 2020 and 2019, respectively, of borrowings for such clients, is the maximum amount 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 $1,881.9 million and $1,966.4 million of DPA credit protection at December 31, 2020 and 2019, 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 $47.5 million and $94.2 million available under DPA credit line agreements provided at December 31, 2020 and 2019, 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. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
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 reasonably be 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 $20 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, 2020. 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. On October 21, 2016, CIT and CIT Bank were named as defendants in an existing lawsuit brought as a qui tam (i.e., whistleblower) action by a former OneWest employee on behalf of the U.S. government. The lawsuit asserted claims related to OneWest’s participation in the Home Affordable Modification Program (“HAMP”) administered by the United States Treasury Department, as well as Federal Housing Administration (“FHA”) and Veterans Administration (“VA”) insurance programs. On October 15, 2019, the plaintiff filed a second amended complaint in the United States District Court for the Eastern District of Texas alleging that, beginning in 2009, CIT (and its predecessor, OneWest ) falsely certified its compliance with HAMP, submitted false claims for incentive payments for loan modifications, submitted false claims for FHA insurance payments and failed to self-report these violations. Plaintiff seeks the return of all U.S. government payments to CIT under the HAMP, FHA or VA programs. CIT has received approximately $ 93 million in servicer incentives under HAMP, and the government has paid more than $ 400 million in the aggregate in borrower, servicer and investor incentives in connection with loans modified by OneWest or CIT under HAMP. The Department of Justice has declined to intervene in this case. On May 5, 2020, a federal court judge in the Eastern District of Texas denied CIT’s motion to dismiss the second amended complaint, and the case is now in discovery. There is currently no scheduled trial date. CIT is defending this litigation vigorously and believes that it has meritorious defenses . |
Certain Relationships And Relat
Certain Relationships And Related Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS | NOTE 23 — CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS CIT Northbridge Credit LLC (“Northbridge”) is an asset-based-lending joint venture between CIT Bank, N.A. (“CIT Bank”) and Allstate Insurance Company and its subsidiary (“Allstate”) that extends credit in asset-based lending middle-market loans. 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 $25.5 million and $18.2 million at December 31, 2020 and 2019, 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 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, 2020, 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 $2.0 million and $1.9 million at December 31, 2020 and 2019, respectively. We are in the process of liquidating this joint venture. 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 $427.0 million and $365.6 million at December 31, 2020, and 2019, 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, 2020 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION | NOTE 24 — BUSINESS SEGMENT INFORMATION Management's Policy in Identifying Reportable Segments As of December 31, 2020, we manage our business and report our financial results in two operating segments: Commercial Banking and Consumer Banking, and a non-operating segment, Corporate. 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. 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. As mentioned in Note 2 – Acquisition and Discontinued Operations complementary businesses and assets from MOB were included with Commercial Finance and Real Estate Finance in Commercial Banking and Consumer and Community Banking. In addition, the HOA deposits were included in Commercial Banking. Types of Products and Services Commercial Banking consists of four divisions. Through its Commercial Finance Business Capital Real Estate Finance Rail Low-cost HOA deposits were added from the MOB Acquisition. Consumer Banking includes Consumer and Community Banking Legacy Consumer Mortgages Consumer and Community Banking and lending products to meet the needs of our customers, including checking, money market, savings, certificates of deposit, residential mortgage loans, and fiduciary services. The division also originates qualified SBA 504 loans and 7(a) loans . SBA 504 loans generally provide growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. SBA 7(a) loans provide working capital, acquisition of inventory, machinery, equipment, furniture, and fixtures, the refinance of outstanding debt subject to any program guidelines, and acquisition of businesses, including partnership buyouts. LCM includes acquired SFR mortgages from the OneWest Bank acquisition that are being run-off or sold. 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, 2020 Interest income $ 1,299.4 $ 373.7 $ 125.9 $ 1,799.0 Interest expense (benefit) 501.5 (29.0 ) 260.8 733.3 Provision (benefit) for credit losses 834.2 (33.9 ) - 800.3 Rental income on operating leases 810.9 - - 810.9 Other non-interest income 359.2 76.1 105.2 540.5 Depreciation on operating lease equipment 327.4 - - 327.4 Maintenance and other operating lease expenses 212.5 - - 212.5 Operating expenses/(gain) loss on debt extinguishment and deposit redemption 802.8 386.6 105.8 1,295.2 Goodwill impairment 436.9 48.2 - 485.1 (Loss) income from continuing operations before provision (benefit) for income taxes $ (645.8 ) $ 77.9 $ (135.5 ) $ (703.4 ) Select Period End Balances Total assets $ 37,884.1 $ 7,829.7 $ 12,392.8 $ 58,106.6 Loans 28,636.5 7,508.1 - 36,144.6 Credit balances of factoring clients (1,719.9 ) - - (1,719.9 ) Assets held for sale 702.4 18.8 - 721.2 Operating lease equipment, net 7,836.6 - - 7,836.6 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 Total assets $ 32,616.7 $ 6,905.0 $ 11,311.1 $ 50,832.8 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 Total assets $ 31,917.0 $ 6,995.5 $ 9,624.9 $ 48,537.4 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 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. 2020 $ 57,291.9 $ 3,062.9 $ (759.2 ) $ (668.4 ) 2019 50,044.7 3,242.2 609.2 452.9 2018 47,676.3 3,080.7 471.4 344.7 Foreign 2020 814.7 87.5 55.8 53.1 2019 788.1 47.5 14.7 76.5 2018 861.1 192.5 165.6 127.4 Total Consolidated 2020 58,106.6 3,150.4 (703.4 ) (615.3 ) 2019 50,832.8 3,289.7 623.9 529.4 2018 48,537.4 3,273.2 637.0 472.1 (1) Includes assets of discontinued operations of $249.8 million at December 31, 2018. There were no assets of discontinued operations at December 31, 2020 and December 31, 2019. |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | NOTE 25 — GOODWILL AND INTANGIBLE ASSETS Goodwill (dollars in millions) Commercial Banking Consumer Banking Total CIT December 31, 2018 $ 326.7 $ 43.2 $ 369.9 December 31, 2019 326.7 43.2 369.9 Additions ( 1) 110.3 4.9 115.2 Impairments (437.0 ) (48.1 ) (485.1 ) December 31, 2020 $ - $ - $ - (1) Includes measurement period adjustments related to the MOB Acquisition, as described below. The December 31, 2018 and 2019 goodwill included amounts recorded from CIT's emergence from bankruptcy in 2009 and from the 2015 acquisition of IMB HoldCo LLC, the parent company of OneWest Bank. The balances are shown net of goodwill impairment charges recognized prior to 2018 related to the goodwill from the acquisition of OneWest Bank of $319.4 million associated with the Consumer Banking and impairments in the Equipment Finance and Commercial Services RUs of $247.0 million and $8.6 million, respectively, representing the full amount of goodwill assigned to those RUs in Commercial Banking. As detailed in Note 2 Acquisition and Discontinued Operations Note 2 Acquisition and Discontinued Operations Once goodwill has been assigned, it no longer retains its association with a particular event or acquisition, and all of the activities within a Reporting Unit (“RU”), whether acquired or internally generated, are available to support the value of goodwill. Goodwill is assessed for impairment at least annually, or more often if events or circumstances have changed significantly from the annual test date that would indicate a potential reduction in the fair value of the RU below its carrying value. The Company performs its annual goodwill impairment test during the fourth quarter of each year utilizing data as of September 30 to perform the test, or more often if events or circumstances have changed significantly from the annual test date. The overall deterioration in the macroeconomic environment, challenges in the banking industry, including the low rate environment, and, in particular, the sustained decrease in CIT’s and its peer companies’ stock prices triggered the need for an interim goodwill impairment test in the first quarter of 2020, which was done under similar parameters to the annual goodwill test described below. We performed the interim impairment test for all RUs with goodwill remaining, including Commercial Finance, Real Estate Finance, Rail and Consumer Banking. Prior to the fourth quarter, the goodwill associated with the MOB Acquisition remained in its own separate RUs within the Commercial Banking and Consumer Banking segments as MOB had not yet been fully integrated with CIT. During the fourth quarter of 2020, MOB was fully integrated into their RUs, including $80.0 million, $30.3 million and $4.9 million into Commercial Finance, Real Estate Finance, and Consumer Banking, respectively. Based on the interim quantitative analysis, as described above, the Company concluded that the carrying amount of the Commercial Finance, Real Estate Finance and Consumer Banking RUs exceeded their estimated fair value and the Company recorded an impairment of goodwill in the first quarter of 2020 in the Commercial Finance, Real Estate Finance and Consumer Banking RUs of $159.9 million, $141.6 million and $43.2 million, respectively, or an aggregate of $344.7 million, representing the full amount of goodwill assigned to the RUs, prior to the integration of MOB. Based on the annual quantitative analysis, after the integration of MOB, as described above, the Company concluded that the carrying amounts of the Rail, Commercial Finance, Real Estate Finance, and Consumer Banking RUs e xceeded their estimated fair value, and the Company recorded an impairment of the goodwill in the fourth quarter of 2020 for $ 25.2 million, $ 80.0 million, $ 30.3 million and $ 4.9 million respectively, or an aggregate of $140.4 million . As a result of impairments recorded in the fourth quarter, goodwill has been fully impaired as of December 31, 2020. Determining the value of the RUs as part of the quantitative impairment test involves significant judgment. The methodology used to assess impairment during the first quarter of 2020 was largely consistent with that used in our annual analysis, as seen below whereby a combination of the income approach (i.e. discounted cash flow (“DCF”) method) and the market approach (i.e. Guideline Public Company ("GPC") method) were used to determine the fair value. Fair Value In the application of the Income Approach, the Company determined the fair value of the RUs using a 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 10.25% to 11.25% for the interim impairment test and from 11.0% to 13.0% for the annual impairment test. 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, for the interim and annual test, the Company applied a 40% and 25% control premium, respectively, 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. 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. 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. 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, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Core deposit intangibles $ 222.4 $ (107.4 ) $ 115.0 $ 126.3 $ (79.7 ) $ 46.6 Trade names 27.7 (15.9 ) 11.8 24.7 (12.7 ) 12.0 Customer relationships 27.4 (19.3 ) 8.1 23.9 (16.2 ) 7.7 Other - - - 7.4 (7.7 ) (0.3 ) Total intangible assets $ 277.5 $ (142.6 ) $ 134.9 $ 182.3 $ (116.3 ) $ 66.0 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, 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 Additions 96.1 3.0 3.5 - 102.6 Amortization ( 1) (27.7 ) (3.2 ) (3.1 ) 0.3 (33.7 ) December 31, 2020 $ 115.0 $ 11.8 $ 8.1 $ - $ 134.9 (1) Includes amortization recorded in operating expenses and operating lease rental income. The addition to intangible asset balances after December 31.2019 reflect the intangibles recognized as a result of the MOB Acquisition. The largest component related to the valuation of core deposits. Core deposit intangibles (“CDIs”) represent future benefits arising from noncontractual customer relationships (e.g., account relationships with the depositors) acquired from the purchase of demand deposit accounts, including interest and Accumulated amortization totaled $142.6 million at December 31, 2020. Projected amortization for the years ended December 31, 2021 through December 31, 2025, is approximately $32.8 million, $24.1 million, $13.4 million, $13.3 million, and $12.1 million, respectively. |
Severance Liabilities
Severance Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
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, 2018 220 $ 13.8 Additions and adjustments 36 15.1 Utilization (123 ) (11.9 ) December 31, 2019 133 17.0 Additions and adjustments 431 33.6 Utilization (171 ) (17.2 ) December 31, 2020 393 $ 33.4 CIT continued to implement various organization efficiency and cost reduction initiatives and recorded restructuring charges of $33.4 million and $15.1 million in 2020 and 2019, respectively. The severance additions primarily related to employee termination benefits incurred in conjunction with these initiatives. |
Parent Company Financial Statem
Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 Assets: Cash and deposits $ 15.5 $ 15.3 Cash held at bank subsidiary 962.8 361.5 Receivables from nonbank subsidiaries 2,543.4 2,401.1 Receivables from bank subsidiaries 556.5 654.8 Investment in nonbank subsidiaries 898.3 1,155.2 Investment in bank subsidiaries 4,943.0 5,266.3 Goodwill — 46.9 Other assets 775.6 872.7 Total Assets $ 10,695.1 $ 10,773.8 Liabilities and Equity: Borrowings $ 4,418.2 $ 3,916.3 Liabilities to nonbank subsidiaries 219.1 158.6 Liabilities to bank subsidiaries 12.2 5.0 Other liabilities 322.7 354.9 Total Liabilities 4,972.2 4,434.8 Total Stockholders' Equity 5,722.9 6,339.0 Total Liabilities and Equity $ 10,695.1 $ 10,773.8 Condensed Parent Company Only Statements of Operations and Comprehensive Income (dollars in millions) Years Ended December 31, 2020 2019 2018 Income Interest income from nonbank subsidiaries $ 99.0 $ 123.4 $ 113.4 Interest income from bank subsidiaries 14.4 16.2 19.2 Interest and dividends on interest bearing deposits and investments — 1.7 4.5 Dividends from nonbank subsidiaries 271.0 25.0 31.0 Dividends from bank subsidiaries — 356.0 218.6 Other non-interest income from subsidiaries 89.0 71.5 61.8 Other non-interest income 15.0 39.7 51.6 Total income 488.4 633.5 500.1 Expenses Interest expense 208.8 202.8 222.0 Interest expense on liabilities to subsidiaries 6.6 15.4 40.5 Other non-interest expenses 204.1 156.5 189.9 Total expenses 419.5 374.7 452.4 Income before income taxes and equity in undistributed net income of subsidiaries 68.9 258.8 47.7 Benefit for income taxes (42.6 ) (160.9 ) (76.5 ) Income before equity in undistributed net income of subsidiaries 111.5 419.7 124.2 Equity in undistributed net (loss) income of bank subsidiaries (449.7 ) 78.4 213.6 Equity in undistributed net (loss) income of nonbank subsidiaries (277.1 ) 31.8 109.3 Net (loss) income (615.3 ) 529.9 447.1 Other comprehensive income (loss), net of tax 87.8 126.2 (91.3 ) Comprehensive (loss) income $ (527.5 ) $ 656.1 $ 355.8 Condensed Parent Company Only Statements of Cash Flows (dollars in millions) Years Ended December 31, 2020 2019 2018 Cash Flows from Operations: Net (loss) income $ (615.3 ) $ 529.9 $ 447.1 Equity in undistributed loss (earnings) of subsidiaries 726.8 (110.2 ) (322.9 ) Other operating activities, net 171.1 (53.0 ) 1,411.1 Net cash flows provided by operations 282.6 366.7 1,535.3 Cash Flows from Investing Activities: (Increase) decrease in investments in and advances to subsidiaries (45.0 ) (250.7 ) 502.5 Decrease in investment securities and securities purchased under agreements to resell — 100.0 50.0 Other investing activities (17.1 ) (16.9 ) (1.8 ) Net cash flows (used in) provided by investing activities (62.1 ) (167.6 ) 550.7 Cash Flows from Financing Activities: Proceeds from the issuance of term debt 500.0 98.6 1,879.5 Repayments of term debt — — (1,854.8 ) Net proceeds from issuance of preferred stock — 195.1 — Repurchase of common stock — (340.9 ) (1,626.7 ) Dividends paid (171.5 ) (146.7 ) (115.9 ) Net change in advances from subsidiaries 63.5 (303.0 ) (376.0 ) Other financing activities, net (11.0 ) (22.6 ) (71.7 ) Net cash flows provided by (used in) financing activities 381.0 (519.5 ) (2,165.6 ) Net increase (decrease) in cash and cash equivalents 601.5 (320.4 ) (79.6 ) Cash and cash equivalents, beginning of period 376.8 697.2 776.8 Cash and cash equivalents, end of period $ 978.3 $ 376.8 $ 697.2 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 Interest income $ 415.2 $ 423.3 $ 446.9 $ 513.6 Interest expense 139.6 165.5 202.5 225.7 (Benefit) provision for credit losses (0.5 ) 63.3 223.6 513.9 Rental income on operating leases 198.9 201.3 200.9 209.8 Other non-interest income 161.3 146.0 102.6 130.6 Depreciation on operating lease equipment 85.5 82.5 81.1 78.3 Maintenance and other operating lease expenses 54.2 48.6 56.1 53.6 Operating expenses 319.6 295.5 360.4 334.4 Goodwill impairment 140.4 - - 344.7 Loss (gain) on debt extinguishment and deposit redemption 0.1 - (14.8 ) - Provision (benefit) for income taxes 27.9 29.5 (73.2 ) (72.3 ) Net income (loss) $ 8.6 $ 85.7 $ (85.3 ) $ (624.3 ) Net (loss) income applicable to common shareholders $ (3.6 ) $ 82.9 $ (97.6 ) $ (628.1 ) (Loss) income from continuing operations applicable to common shareholders $ (3.6 ) $ 82.9 $ (97.6 ) $ (628.1 ) Net (loss) income per diluted share $ (0.04 ) $ 0.84 $ (0.99 ) $ (6.40 ) 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 |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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 credit losses (“ACL”), 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"), if any. 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. |
Announcement of Definitive Merger Agreement | Announcement of Definitive Merger Agreement On October 16, 2020, First Citizens BancShares, Inc. ("First Citizens"), the parent company of First-Citizens Bank & Trust Company, and CIT, the parent company of CIT Bank, N.A., jointly announced that they have entered into a definitive agreement under which the companies will combine in an all-stock merger. |
Acquisition | Acquisition 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 (the “MOB Acquisition”). The results for 2020 include the activity of MOB whereas no MOB activity is included in the results for 2019. See further discussion in Note 2 – Acquisition and Discontinued Operations |
Discontinued Operations | Discontinued Operations There were no discontinued operations as of December 31, 2020 and 2019. Income (loss) from discontinued operations reflects the activities of the Business Air and Financial Freedom businesses for the years ended December 31, 2019 and 2018. See further discussion in Note 2 – Acquisition and Discontinued Operations |
Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) and Interagency Statement | The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and Interagency Statement On March 27, 2020, the CARES Act was signed into law. Section 4013 of the CARES Act gives financial institutions temporary relief from the accounting and disclosure requirements related to troubled debt restructurings (“TDRs”) under ASC 310-40 and past due and non-accrual reporting in certain situations. Under the CARES Act, banks may elect to deem that loan modifications do not result in TDRs if they are: (1) related to the novel coronavirus disease (“COVID-19”) pandemic; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the national emergency declared by the President under the National Emergencies Act with respect to COVID-19 (the “National Emergency”) or (B) December 31, 2020. With respect to past due and non-accrual loans, the CARES Act provides that financial institutions are not expected to designate loans with payment accommodations granted due to COVID-19 as past due or non-accrual if they were current on the date used to determine borrower’s delinquency status for the purpose of providing the deferment. On December 27, 2020 the Consolidated Appropriations Act, 2021 was signed into law. It provides additional COVID-19 focused relief and extends certain provisions of the CARES Act. The termination of the temporary relief from TDR accounting under the CARES Act was extended to the earlier of (1) 60 days after the national emergency termination date or (2) January 1, 2022. Additionally, on April 7, 2020, a group of federal and state government banking agencies issued an Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised) (the “Interagency Statement”) that offers some practical expedients for evaluating whether loan modifications that occur in response to the COVID-19 pandemic are TDRs. The Interagency Statement indicates that a lender can conclude that a borrower is not experiencing financial difficulty if either (1) short-term (e.g., six months or less) modifications are made in response to COVID-19, such as payment deferrals, fee waivers , extensions of repayment terms, or other delays in payment that are insignificant related to loans in which the borrower is less than 30 days past due on its contractual payments at the time a modification program is implemented, or (2) the modification or deferral program is related to COVID-19 and mandated by the federal government or a state government (e.g., a state program that requires all institutions within that state to suspend mortgage payments for a specified period). The Interagency Statement interprets , but does not suspend, ASC 310-40, as any loan modification that meets either of these practical expedients would not automatically be considered a TDR because the borrower is presumed not to be experiencing financial difficulty at the time of the loan modification. As provided for under the CARES Act, a financial institution may account for an eligible loan modification either under Section 4013 or in accordance with ASC Subtopic 310-40. The Interagency Statement provides that with respect to loans not otherwise reportable as past due, financial institutions are not expected to designate loans with deferrals granted due to COVID-19 as past due because of the deferral, and that “each financial institution should refer to the applicable regulatory reporting instructions, as well as its internal accounting policies, to determine if loans to stressed borrowers should be reported as non-accrual assets in regulatory reports.” However, during the short- term arrangements discussed in the Interagency Statement , these current loans generally should not be reported as non-accrual. The Interagency Statement did not provide a specific end date regarding COVID-19 related TDRs as long as the loan meets the criteria for eligibility. CIT applies the TDR provisions of the CARES Act on a product-type basis, or on a loan-by-loan basis, for eligible loan modifications. For eligible loans for which the CARES Act is not applied, CIT follows the applicable guidance of the Interagency Statement. For payment deferrals granted to borrowers impacted by COVID-19, CIT has elected to continue to recognize interest income (at a modified effective rate) subject to consideration of whether the loan should be placed on non-accrual status. In addition, CIT has established a credit loss reserve for the estimated amount of accrued interest that will not be recovered for COVID-19 loans, as further detailed in the Allowance Methodology section below. After the initial payment deferral period granted due to COVID-19, on a case by case basis where requested, borrowers may be offered an additional deferral of up to 90 days pursuant to the CARES Act or Interagency Statement guidance outlined above. After the deferral period, CIT will apply its credit policies, and amounts deferred must be repaid based on modified terms, including adding the unpaid amounts to the end of the contract term, spread throughout the remaining term, or other arrangements made on a case by case basis. Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic On April 10, 2020, the FASB Staff issued a question-and-answer document (the “Lease Concessions Q&A”) on Topic 842: Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic. The Lease Concessions Q&A provides that entities may elect to apply or not apply the lease modification guidance in ASC 842, Leases, for lease concessions provided by lessors as a result of the COVID-19 pandemic. This election is available for concessions that result in the total payments required by the modified contract being substantially the same as or less than total payments required by the original contract. CIT has elected not to apply the lease modification guidance in ASC 842 for such lease concessions as permitted by the Lease Concessions Q&A. We account for these lease concessions prospectively recognizing income on a straight-line basis for operating leases and a modified effective rate for finance leases. |
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 are referred to as loans and leases. 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 to HFI , the discount is accreted into earnings as an increase to interest income over the life of the loan using the effective interest method and subject to CIT’s allowance for credit loss review. 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. |
ASU 2016-13 Financial Instruments – Credit Losses (Topic 326) | ASU 2016-13 Financial Instruments – Credit Losses (Topic 326) On January 1, 2020, CIT adopted ASU 2016-13 Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ASU 2016-13 was adopted using a modified-retrospective approach with a cumulative-effect adjustment to the opening balance of retained earnings. As of January 1, 2020, retained earnings was decreased by $82.4 million due to the adoption of this new standard. Comparative prior period financial information was not adjusted and will continue to be reported under previously applicable accounting guidance. |
Allowance Methodology | Allowance Methodology Topic 326 requires estimating and recognizing expected credit losses over the remaining expected life for applicable financial assets. However, the standard does not prescribe a specific credit loss methodology, requiring CIT to use judgment in determining the relevant information and estimation methods that are appropriate, which must be applied consistently over time. Determining an appropriate ACL requires significant judgment that may change based on management’s ongoing process for analyzing the credit quality of the Company’s loan portfolio. The amounts outstanding on term loans, consumer loans, revolving credit facilities and finance leases are referred to as loans. CIT estimates the ACL for financial assets with similar risk characteristics on a collective basis. A financial asset is measured individually only if it does not share similar risk characteristics with other financial assets. The ACL for AFS debt securities is estimated by using the discounted cash flow method, which reflects the differences between the amortized cost basis and the present value of the principal and interest cash flows expected to be collected. The ACL for loans (bifurcated between commercial and consumer loans) is estimated by using a method other than a discounted cash flow method, and therefore reflects CIT’s expected credit losses on the amortized cost basis of the financial assets as of the reporting date. The estimate of ACL is based on relevant information about past events, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amounts. CIT utilizes a forecast that extends over the contractual term of the loans, and which CIT considers reasonable and supportable for the life of the loan. This forecast uses historical information and takes into consideration current conditions and economic expectations before converging to a long-run trend. The ACL is a valuation account that is deducted from the amortized cost basis of the financial asset to present the net amount expected to be collected on the financial asset. At the reporting date, CIT records an ACL on the amortized cost of financial assets, including purchased financial assets. Any changes in the current estimate of the ACL from the estimated ACL previously recorded are reported in net income as provision for credit losses expense or reversal of provision for credit losses. Amortized cost basis is defined as the amount at which a loan or investment is originated or acquired, adjusted for applicable accrued interest, accretion, or amortization of premium, discount, and net of deferred fees or costs, collection of cash, write-offs, foreign exchange, and fair value hedge accounting adjustments. Accrued interest is generally separately reported from the loan’s amortized cost basis as accrued interest receivable within Other Assets. Accrued interest receivable that is excluded from the amortized cost basis is disclosed in Note 3 – Loans by CECL, the Company has elected not to measure an ACL for accrued interest receivable. Rather, CIT’s general policy is to reverse all previously accrued but uncollected interest with a charge against interest income when an account is placed on non-accrual status (for commercial loans) or is contractually delinquent for 90 days or more (for consumer mortgages and small ticket commercial loans). However, for loan deferments granted in response to the COVID-19 pandemic with no contractual payments due during the deferral period, the loans will generally not be reported as past due or placed on non-accrual or written off during the period of the deferral. Given CIT’s election to accrue interest during the payment deferral period for loan modifications made in response to the COVID-19 pandemic, CIT has established a reserve against the accrued interest receivable for loans for which a payment deferral has been granted (via a charge to the provision for credit losses) for amounts deemed potentially unrecoverable. After the payment deferment period, CIT may require the immediate payment of deferred amounts, provide for the payment of deferred amounts over time, provide for deferred amounts to be paid at the end of the original term, or otherwise modify or restructure the loan. Where the deferred interest is added to the loan, the accrued interest will be recorded as part of the loan balance. Additionally, the Company applies qualitative adjustments that continued to affect the allowance for the collectively evaluated loans. Qualitative reserve adjustments are applied for items not directly captured in the quantitative component of the reserve and included items such as macroeconomic uncertainty, risk to specific industries or portfolio segments, potential changes in collateral value and other factors. The Company’s approach to macroeconomic uncertainty utilizes weighting of the differences between the forecasted baseline and upside and downside scenarios. An ACL is not recognized for receivables arising from operating leases as these receivables are not within the scope of Topic 326. The accrual of rental income on operating leases is suspended when the collection of substantially all rental payments is no longer probable and rental income for such leases is recognized when cash payments are received. In the period we conclude that collection of rental payments is no longer probable, accrued but uncollected rental revenue, including operating lease receivables resulting from payment deferrals made in response to COVID-19, is reversed against rental income. Commercial Loans With respect to commercial loans, the Company monitors various factors, including expected and historical losses and levels of, and trends in, past due loans, non-performing assets, collateral values and economic conditions. These risk factors are considered when commercial loans are graded according to the Company’s internal rating system with respect to probability of default (“PD”) and loss given default (“LGD” or “severity”). The PD and severity are derived through historical observations of default and subsequent losses within each risk grading. Credit quality indicators used in determining risk ratings are monitored and updated at least annually. CECL models are employed to develop a lifetime PD which is used to establish the ACL for financial assets that are measured on a collective basis. These models utilize external and internal historical loan performance data together with historical macroeconomic data to identify correlations and select macro variables such as unemployment rate and gross domestic product growth rate that would be appropriate predictors of loan losses in the future to determine the ACL. See Note 3 – Loans Consumer Loans With respect to consumer loans, the Company monitors loan performance metrics, including delinquency and non-accrual status, and credit quality risk indicators such as the loan-to-value ratio (“LTV”) of the underlying collateral and the credit score developed by the Fair Isaac Corporation (the “FICO score”) of borrowers excluding government insured loans (which are discussed in the Zero Loss Assumption section below). LTV refers to the ratio comparing the loan's unpaid principal balance to the property's current collateral value as an indicator of the potential loss severity in the event of default. The borrower’s current FICO score, which is obtained quarterly is a secondary credit quality indicator to evaluate borrower’s credit payment history. For consumer loans that are evaluated collectively, ACL and cash flow projections are developed with models that utilize historical loan performance data together with historical macroeconomic data to identify correlations and select macro variables that would be appropriate in estimating future loan losses. The macroeconomic variables considered include measurements of the regional economy, home price changes and unemployment rates, which may have an impact on credit quality. Refer to Note 3 – Loans Purchased Credit Deteriorated (“PCD”) Financial Assets PCD assets are acquired individual financial assets (or acquired groups of financial assets with similar risk characteristics) that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by an acquirer’s assessment. A single asset can be deemed a PCD asset, or a group of assets acquired together that have similar risk characteristics can be classified as PCD assets. PCD assets are recorded at their purchase price plus the ACL expected at the time of acquisition, or “gross up” of the amortized cost basis. Day 1 ACL is established for these loans without a statement of operations effect. Any changes in the current estimate of the ACL after acquisition from the estimated ACL previously recorded are reported in net income as provision for credit losses expense or reversal of provision for credit losses in subsequent periods as they arise. A purchased financial asset that does not qualify as a PCD asset is accounted for similarly to originated assets, whereby an ACL is recognized with a corresponding increase to the provision for credit losses. Determining which assets meet the PCD definition requires management’s judgment as there is no definition provided for “more-than-insignificant deterioration in credit quality”. Credit deterioration attributes such as credit risk ratings, FICO score, delinquency status and other standard indicators (e.g., TDR, non-accrual status, charge-offs and bankruptcy) are used to classify PCD assets either at the level of the individual asset or on the basis of a group or pool in an asset acquisition or business combination. In terms of CIT’s former purchased credit-impaired loans (“PCI”) under ASC 310-30, the Company elected to transition from pool level to loan level by using the undiscounted expected cash flows for each asset within the pool to allocate the respective non-credit discount pursuant to ASC 326-20. PCI assets became PCD assets via the re-characterization of existing non-accretable discount as ACL using the undiscounted contractual cash flows method at the loan level, with no equity impact at transition. In transitioning from PCI to PCD, accrued interest was recognized separately from the loan balance because of the Company’s accounting policy election not to measure an ACL on accrued interest receivables within other assets. Zero Loss Assumption Measurement of expected credit losses is not required for a financial asset or group of financial assets if historical credit loss information adjusted for current conditions and reasonable and supportable forecasts results in an expectation of nonpayment of the amortized cost basis of zero. Government-insured loans (e.g., Federal Housing Administration (“FHA”)), U.S. treasury securities, U.S. government agency issued securities and certain commercial agency securities are within the scope of the zero loss assumption under CECL given these securities have the highest credit ratings, a long history of no credit losses, and are guaranteed by high credit quality entities. MOB Acquisition In connection with the MOB Acquisition, the Company incorporated MOB’s financial assets into CIT’s CECL framework. CIT was required to record an allowance for non-PCD assets with a corresponding increase to the provision for credit losses. For acquired PCD loans, an allowance was 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 has been previously written-off, or would be subject to write-off under CIT’s charge-off policy, the CECL allowance included as part of the grossed-up loan balance at acquisition was immediately written-off, resulting in a zero period-end allowance balance and no impact on the ACL rollforward. Refer to Note 2 Acquisition and Discontinued Operations Other Allowance Factors With respect to loans transferred from held for investment (“HFI”) to assets held for sale (“AHFS”), prior to transfer to AHFS a write-down of the amortized cost basis is recognized with a charge to the provision for credit losses, to the extent the carrying value exceeds the fair value and the difference relates to credit quality. After the asset is transferred to AHFS, a valuation allowance is recognized in other income to the extent the amortized cost basis exceeds fair value, and changes in valuation are included in the determination of net income of the period in which the change occurs. With respect to loans transferred from AHFS to HFI, any valuation allowance previously recorded on the AHFS is reversed through earnings prior to the transfer. CIT then reclassifies the loan into HFI at its amortized cost basis (which is reduced by any previous charge-offs but excludes any valuation allowance). After transferring back into HFI, the loan is evaluated in accordance with CIT’s normal credit review policies with any necessary ACL recognized with a corresponding increase to the provision for credit losses. An approach similar to the ACL process is utilized to calculate the allowance for off-balance sheet credit exposures related to unfunded loan commitments, letters of credit and deferred purchase agreements (“DPAs”). The allowance for off-balance-sheet credit exposures is maintained to absorb estimated credit losses related to these facilities and includes an assumption of the likelihood that funding will occur prior to an obligor defaulting. The allowance for off-balance-sheet credit exposures is recorded as a liability within other liabilities on the Consolidated Balance Sheets. Net adjustments to the allowance for off-balance-sheet credit exposures are included in the provision for credit losses. A loan or lease is determined to be collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. Collateral dependent loans and leases are recorded at their amortized cost basis. An ACL is established for an excess of amortized cost of collateral-dependent loans or leases over the fair value of the underlying collateral (less costs to sell, if applicable) at the reporting date. Collateral-dependent loans and leases are identified on a quarterly basis. The underlying collateral is primarily equipment and real estate. CECL requires that entities do not extend the contractual term for expected extensions, renewals, and modifications unless it has a reasonable expectation at the reporting date that it will execute a TDR with the borrower. In addition, extension or renewal options (excluding those that are accounted for as a derivative) that are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the entity are considered when determining the contractual term of a loan. Under CIT’s allowance methodology, CIT defines a TDR as reasonably expected when the Company has identified and approved a TDR for commercial loans and when CIT as a Lender has approved the terms of a trial modification for a borrower experiencing financial difficulty (typically the beginning of the three- to four-month Accounting for Purchased Credit-Impaired Loans Prior to the Adoption of the CECL Guidance Purchased credit-impaired loans (“PCI loans”) were determined as of the date of purchase to have evidence of credit quality deterioration since origination, which made it probable that the Company would be unable to collect all contractually required payments (principal and interest). Evidence of credit quality deterioration as of the purchase date included past due status, recent borrower credit scores, credit rating (probability of obligor default) and recent loan-to-value ratios. Commercial PCI loans were accounted for as individual loans. Conversely, consumer PCI loans with similar common risk characteristics were pooled together for accounting purposes at the cohort level. Common risk characteristics consisted 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 was 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 were initially recorded at estimated fair value, which was 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 believed a market participant would consider. The Company estimated the cash flows expected to be collected at acquisition using internal credit risk and prepayment risk models that incorporated 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 included accretable and non-accretable components. The accretable yield was 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 was 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 was referred to as the non-accretable difference. Subsequent to acquisition, the estimates of the cash flows expected to be collected were 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 was reviewed but would be revised only if it was deemed probable that a significant change had occurred. Probable and significant decreases in expected cash flows as a result of further credit deterioration resulted 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 resulted 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 was affected by revisions to previous expectations that resulted 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 assumed 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 were recognized as adjustments to the accretable yield on a prospective basis. Resolutions of loans may have included sales to third parties, receipt of payments in settlement with the borrower, or foreclosure of the collateral. Upon resolution, the Company’s policy was 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 did not affect the percentage yield calculation used to recognize accretable yield on the pool. This removal method assumed that the amount received from these resolutions approximated the pool performance expectations of cash flows. The accretable yield percentage was unaffected by the resolution. Modifications or refinancing of loans accounted for within a pool did not result in the removal of those loans from the pool; instead, the revised terms were reflected in the expected cash flows within the pool of loans. |
Past Due and Non-Accrual Loans | Past Due and Non-Accrual Loans A loan is considered past due for financial reporting purposes if a default of contractual principal or interest exists for a period of 30 days or more. For consumer mortgage loans, under the Mortgage Bankers Association’s method of reporting delinquencies, a loan is delinquent if a monthly payment has not been received by the end of the day immediately preceding the loan’s next due date. All other loans use a method of reporting delinquencies that considers a loan delinquent if a monthly payment has not been received by the close of business on the loan’s next due date. 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. The Company elected that at the time a loan is placed on non-accrual status (for commercial loans) or is contractually delinquent for 90 days Regarding payment deferrals granted due to COVID-19, as there are no contractual payments due during the deferral period, these loans will generally not be reported as past due or placed on non-accrual during the period of the deferral. The loans modified for payment deferral shall maintain the borrower’s delinquency status that existed prior to entering the forbearance or deferment period and is frozen for the duration of the payment deferral period as no contractual payments are due. The frozen delinquency status applies to both initial payment deferrals and any additional payment deferrals granted after the initial deferral period. |
Individually Reviewed Loans | Individually Reviewed Loans CECL guidance provides that a financial asset is measured individually if it does not share similar risk characteristics with other financial assets. For CIT, loans which are identified to be individually reviewed under CECL typically would have been evaluated individually as impaired loans using accounting guidance in effect in periods prior to the adoption of CECL. Loans of $500 thousand or greater that are placed on non-accrual status are subject to periodic individual review by the Company’s problem loan management (“PLM”) function. The Company excludes certain loan portfolios from its individually reviewed loan disclosures as charge-offs are typically determined and recorded for such loans beginning at 90-150 days of contractual delinquency, depending on loan type. These excluded loan portfolios include small-ticket loans, primarily in Business Capital, as well as short-term factoring receivables in Commercial Finance. |
Charge-Offs on Loans | Charge-Offs on 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 delinquency, depending on loan type. 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 reasonably assured and in process. Charge-offs on the Company’s loans are reflected in the provision for credit losses. Expected recoveries of amounts previously written off and expected to be written off are included in CIT’s loss estimates as decreases to the ACL and the provision for credit losses. In some circumstances, the ACL for a specific portfolio or loan may be negative because the amount expected to be collected, including expected recoveries, exceeds the financial asset’s amortized cost basis. The negative ACL is limited to the amounts previously written off and expected to be written off by the Company. For acquired PCD loans where all or a portion of the loan balance had been charged off prior to acquisition, and 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 if required by CIT’s existing charge-off policy. 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. The initial ACL recognized on PCD assets includes the gross-up of the loan balance reduced by immediate charge-offs for loans previously charged off by the predecessor company or which meet CIT’s charge-off policy on the date of acquisition. Charge-offs against the allowance related to such acquired PCD loans do not result in a statement of operations impact. See Note 4 – Allowance for Credit Losses |
Regulatory Capital | Regulatory Capital In March 2020, the OCC, FRB and Deposit Insurance Corporation (“FDIC”) collectively issued an interim final rule on the Revised Transition of the Current Expected Credit Losses Methodology for Allowances (“Revised CECL Transition Rule”) for regulatory capital. See Note 15 – Regulatory Capital for more details |
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 based on the estimated present value of future lease payments over the lease term. As our leases do not provide an implicit rate and the rate is not readily determinable, we use our estimated incremental borrowing rate in determining the present value of lease payments. 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 does 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. As a result of the adoption of Topic ASC 842 guidance as of January 1, 2019, CIT recognized lease liabilities, with corresponding ROU assets, based on the present value of unpaid lease payments for existing leases. 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. Lessee Accounting for Periods Prior to Adoption of Topic 842 (Prior to January 1, 2019 adoption of Topic 842) 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 Operations 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 adoption of Topic 842) 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 insignificant 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 not significant 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 sold. 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 were established 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. Prior to the adoption of ASU 2016-13 Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
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 Sheets and are reported at the lower of the cost or fair market value less disposal costs (“LOCOM”). |
Securities Sold Under Agreements to Repurchase | Securities Sold Under Agreements to Repurchase Securities sold under agreements to repurchase (“repos”) are accounted for as collateralized financing transactions as the terms of the sale agreements do not qualify for sale accounting and are therefore recorded at the amount of cash received. Accrued interest payables are recorded in other liabilities. Interest incurred is recorded in interest expense. Repos are collateralized by securities reported as assets on the Consolidated Balance Sheets. The fair value of collateral is monitored daily and additional collateral is provided or excess collateral is returned for margin maintenance purposes. All repos are overnight and collateralized by securities issued or guaranteed by U.S. government/sponsored agencies. Given that repos mature each business day, the carrying values are assumed to approximate the fair value. |
Securities Purchased Under Agreement to Resell | Securities Purchased Under Agreements to Resell Securities purchased under agreements to resell (“reverse repos”) are accounted for as collateralized financing transactions as the terms of purchase agreements 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 excess collateral is returned for margin maintenance purposes. Collateral accepted under reverse repo transactions is not permitted by contract to be sold or repledged. |
Investments | Investments Debt Securities Investments in debt securities that are not classified as trading securities or 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. Debt security purchases and sales are recorded as of the trade date. Realized gains and losses on sales are included in other non-interest income based on a specific identification method, and interest income on AFS securities is included within Other interest and dividend income. Evaluating AFS Debt Securities for Credit Losses An unrealized loss exists when the current fair value of an individual debt security is less than its amortized cost basis. Debt securities classified as AFS that are in an unrealized loss position, which the Company does not intend to sell or is not likely to be required to sell, are evaluated to determine whether the decline in fair value has resulted from credit losses or other factors at the individual security level, if they do not qualify for zero-loss assumption. If evidence of credit loss exists, the present value of expected cash flows is compared with the amortized cost basis and an allowance is recorded as a deduction from the security balance, with a corresponding increase in the provision for credit losses, limited by the amount that the fair value is less than the amortized cost basis. Non-credit related impairment losses are recorded in Other Comprehensive Income (“OCI”). Any changes in the current estimate of the ACL from the estimated ACL previously recorded are reported in net income as provision for credit losses expense or reversal of provision for credit losses. Losses are charged against the ACL when the uncollectibility of an AFS debt security is confirmed by management. Change in the ACL due to changes in time value is reported as provision for credit losses. If the Company intends to sell the debt security, or more likely than not will be required to sell the security before recovery of its amortized cost basis, any existing ACL is written off and the amortized cost basis of the security is written down to the fair value at the reporting date with any incremental impairment reported in earnings. An AFS debt security is deemed to be a PCD asset if it has a non-investment grade public debt rating at acquisition. The ACL for PCD assets is measured at the individual security level and is added to the purchase price at the time of acquisition to establish the amortized cost basis. Accrued Interest Receivable on AFS The Company elected to present the accrued interest receivable balance separately within Other Assets. Accrued interest is excluded from both the fair value and the amortized cost basis of the AFS debt security for the purpose of identifying and measuring impairment. The Company elected not to measure an ACL for accrued interest receivable, rather, all previously accrued but uncollected interest is reversed and charged against interest income when the AFS security is deemed uncollectible by management. Evaluating Investments for OTTI Prior to the adoption of ASU 2016-13, unrealized losses that were determined to be temporary in nature were recorded, net of tax, in AOCI for AFS securities, as these investments were carried at their amortized cost. Unrealized losses on securities carried at fair value were recorded through earnings as part of the total change in fair value. The Company conducted and documented periodic reviews of all securities with unrealized losses to evaluate whether the impairment was other than temporary. Under the legacy guidance for debt securities, OTTI was recognized in earnings for debt securities that the Company had an intent to sell or that the Company believed it is more-likely-than-not that it will be required to sell prior to the recovery of the amortized cost basis. OTTI on debt securities classified as AFS were recognized in other non-interest income in the Consolidated Statements of Operations in the period determined. Impairment was evaluated and to the extent it was credit related amounts were reclassified out of AOCI to other non-interest income. If it was not credit related then, the amounts remain in AOCI. Equity Securities 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. Equity securities with readily determinable fair values are carried at fair value with changes in value recorded in earnings. The Company has made an accounting policy election to measure equity securities without readily determinable fair values at cost, less any impairment, adjusted for any changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Securities accounted for under e quity method are recorded at cost in Other Assets , adjusted to reflect the Company’s portion of income, loss or dividend of the investee and are periodically assessed for OTTI, with the net asset values reduced when impairment is deemed to be other-than-temporary. 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 their 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 Operations. 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 performed 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 expired 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 (February 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. During 2020, the Company impaired all of its goodwill. 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. CIT uses the proportional amortization method to account for low income housing tax credit ("LIHTC") investments. Under the proportional amortization method, the investment performance is presented net of taxes as a component of income tax expense (benefit), which provides users with a better understanding of the returns from such investments. 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 is 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 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. 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 statement of operations 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 2021 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 in other assets or other liabilities. CIT does not offset derivative assets and liabilities and cash collaterals under master netting agreements and reports all derivatives on a gross basis in the Consolidated Balance Sheets. 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 Operations. 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, as well as inputs 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 market-based 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 may include prices, 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. |
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. The functional currency for certain of these foreign operations is the local currency. The value of assets and liabilities of these 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 Operations. |
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 legal entities to be evaluated for consolidation and addresses the approach for determining a VIE’s PB and requires 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. ASC 810 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 CIT did not have any consolidated VIEs in 2018, 2019 and 2020. 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 and letters of credit, capital markets related fees, agent and advisory fees, insurance fees, and servicing fees on loans CIT services for others, (2) gains and losses on leasing equipment, net of impairments, (3) factoring commissions, (4) bank-owned life insurance (“BOLI”) income, (5) gains and losses on investment securities, net of impairments, (6) property tax income, and (7) other revenues. Other revenues include items that are more episodic in nature, such as gains and losses on receivables sales, gains and losses on OREO sales and work-out related claims, gains and losses on derivatives and foreign currency exchange, 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, operating expenses, goodwill impairment, and loss on debt extinguishments and deposit redemptions. Operating expenses consists of (1) compensation and benefits, (2) technology costs, (3) professional fees, (4) net occupancy expense, (5) insurance, (6) restructuring costs, (7) advertising and marketing, (8) intangible asset amortization, (9) property tax expense, and (10) other expenses. |
Prepaid Railcar Certification Costs | Prepaid Railcar Certification Costs The Company incurs certain costs mainly 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 The fair value measure of stock-based equity awards is primarily based on the fair market value of CIT’s common stock on the date of grant. Compensation expense associated with restricted stock units (“RSUs”) is recognized over the requisite service period, which is generally three years. For “graded vesting” awards, each vesting tranche of the award is amortized separately as if each were a separate award. Compensation expense for performance stock units (“PSUs”) that are “cliff vesting” is recognized over the requisite service period and adjusted based on the probability of achieving the performance condition. CIT recognizes the effect of forfeitures in compensation expense when they occur. Stock-based awards that are designed to settle in cash and are accounted for as liability awards. The values of these cash-settled awards are re-measured at the end of each reporting period until the award is settled. 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 Operations. |
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 Consolidated Balance Sheets. 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 – Acquisition and Discontinued Operations |
Accounting Pronouncements Adopted | Accounting Pronouncements Adopted On January 1, 2020, the Company adopted the following Accounting Standards Updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”): CECL and subsequent related ASUs ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), See further discussion in the ASU 2016-13 Financial Instruments – Credit Losses (Topic 326) ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities 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. 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 ASU 2019-04 , Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments amended the standards on credit losses, hedging, and recognizing and measuring financial instruments to clarify them and address implementation issues. 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. |
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, 2020: Standard Summary of Guidance Effect on CIT's Financial Statements 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. • CIT adopted this guidance as of January 1, 2021. The adoption of this standard did not have a material impact on CIT’s consolidated financial statements and disclosures. ASU 2020-09 Debt (Topic 470) Amendments to SEC Paragraphs Pursuant to SEC Release No. 33-10762 Issued October 2020 • This ASU amended and superseded SEC paragraphs in the Accounting Standards Codification to reflect the issuance of Sec Release No. 33-10762 related to financial disclosure requirements for subsidiary issuers and guarantors of registered debt securities and affiliates whose securities are pledged as collateral for registered securities. • The final rules are effective on January 4, 2021. Voluntary compliance with the final amendments in advance of January 4, 2021 is permitted. • CIT adopted the final rules as of January 1, 2021. • The adoption did not have a material impact on CIT’s consolidated financial statements and disclosures, as CIT does not have subsidiary issuers or guarantors within the scope of this rule. ASU 2020-08 Codification Improvements to Subtopic 310-20, Receivables - Nonrefundable Fees and Other Costs Issued October 2020 • The amendments in this update clarify that the premium on a callable debt security should be amortized to the next call date, unless estimated prepayment is considered. Once the call date is reached, if there is no remaining premium or if there are no further call dates, the entity shall reset the effective yield using the payment terms of the debt security. • CIT adopted this guidance as of January 1, 2021. • The adoption of this standard did not have a significant impact on CIT’s financial statements and disclosures as CIT’s current securities within the scope of this ASU have no premium. ASU 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting, Issued March 2020 with Updates through January 2021 • The amendments in this update provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. • The amendments in this update apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. • For contract modifications, the amendments provide the optional relief of accounting for the modification as a continuation of the existing contract without additional analysis. In addition, companies can consider embedded features to be clearly and closely related to the host contract without reassessment. • For hedge accounting, entities can continue hedge accounting when certain critical terms of a hedging relationship change. Moreover, companies can perform some effectiveness assessments in ways that disregard certain potential sources of ineffectiveness. • Entities may make a one-time election to sell and/or transfer debt securities classified as held-to-maturity (“HTM”), that both reference an eligible reference rate and were classified as HTM before January 1, 2020. This one-time election may be made at any time after March 12, 2020 but no later than December 31, 2022. • The ASU applies prospectively to contract modifications and hedging relationships. • ASU 2021-01 clarifies that certain optional expedients and exceptions in Topic 848 apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. An entity may elect to apply the amendments in this Update on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final Update, up to the date that financial statements are available to be issued. • Entities can apply the amendments in this update as of the beginning of the interim period that includes March 12, 2020 (January 1, 2020 for calendar year-end companies) or any date thereafter. However, the guidance will only be available for a limited time (generally through December 31, 2022). • CIT is currently evaluating the optional expedients and exceptions provided by this ASU, the timing of the election of the standard, and its impact on the Company’s consolidated financial statements and disclosures. • In Q4 2020, CIT elected to apply the contract modification relief to the interest rate swap contracts for which the discount rate changed from the Federal Funds Rates to the Secured Overnight Financing Rate (“SOFR”) due to discounting transition by the Central Counterparties (i.e., Chicago Mercantile Exchange and LCH Clearnet). In addition, CIT elected to apply the hedge accounting relief to the hedging interest rate swaps, which allows the Company to not consider a change in the interest rate used for the discounting of a derivative hedging instrument as a change to the critical terms of the hedging relationship. • The Company will continue to assess the impact as the reference rate transition occurs through December 31, 2022. • CIT did not have any HTM debt securities as of January 1, 2020. ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity Issued August 2020 • The amendments in this update reduce the number of models used to account for convertible instruments, amends diluted earnings per share calculations for convertible instruments, amends the requirements for a contract (or embedded derivative) that is potentially settled in an entity’s own shares to be classified in equity, and expands disclosure requirements for convertible instruments. • Effective for CIT as of January 1, 2022. Early adoption is permitted. • This ASU is not expected to have a material impact on CIT’s consolidated statements and disclosures as the Company currently does not hold any convertible instrument within the scope of this ASU. |
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 reasonably be 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 $20 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, 2020. 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. On October 21, 2016, CIT and CIT Bank were named as defendants in an existing lawsuit brought as a qui tam (i.e., whistleblower) action by a former OneWest employee on behalf of the U.S. government. The lawsuit asserted claims related to OneWest’s participation in the Home Affordable Modification Program (“HAMP”) administered by the United States Treasury Department, as well as Federal Housing Administration (“FHA”) and Veterans Administration (“VA”) insurance programs. On October 15, 2019, the plaintiff filed a second amended complaint in the United States District Court for the Eastern District of Texas alleging that, beginning in 2009, CIT (and its predecessor, OneWest ) falsely certified its compliance with HAMP, submitted false claims for incentive payments for loan modifications, submitted false claims for FHA insurance payments and failed to self-report these violations. Plaintiff seeks the return of all U.S. government payments to CIT under the HAMP, FHA or VA programs. CIT has received approximately $ 93 million in servicer incentives under HAMP, and the government has paid more than $ 400 million in the aggregate in borrower, servicer and investor incentives in connection with loans modified by OneWest or CIT under HAMP. The Department of Justice has declined to intervene in this case. On May 5, 2020, a federal court judge in the Eastern District of Texas denied CIT’s motion to dismiss the second amended complaint, and the case is now in discovery. There is currently no scheduled trial date. CIT is defending this litigation vigorously and believes that it has meritorious defenses . |
Acquisition and Discontinued _2
Acquisition and Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Acquisition [Line Items] | |
Summary of Other Assets | The following table presents the components of other assets. Other Assets (dollars in millions) December 31, December 31, 2020 2019 Fair value of derivative financial instruments $ 431.6 $ 190.7 Tax credit investments ( 1) 427.0 365.6 Right of use assets 198.8 194.9 Property, furniture and fixtures 187.0 160.0 Counterparty receivables 174.1 126.5 Prepaid expenses 169.9 98.3 Intangible assets, net 134.9 66.0 Current and deferred federal and state tax assets 60.8 55.6 Other ( 2) 464.4 381.6 Total other assets $ 2,248.5 $ 1,639.2 (1) in this balance are LIHTC of $299.2 million and $263.3 million as of December 31, 2020 and December 31, 2019, respectively, that provide tax benefits to investors in the form of tax deductions from operating losses and tax credits. During 2020, 2019 and 2018, the Company recorded $27.4 million, $29.8 million and $29.1 million, respectively, in tax provisions under the proportional amortization method. During 2020, 2019 and 2018, the Company recognized total tax benefits of $35.9 million, $35.5 million and $34.2 million, respectively, which included tax credits of $26.7 million, $28.0 million, and $27.0 million recorded in income taxes. 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. Refer to Note 1 – Business and Summary of Significant Accounting Policy for additional information. See also Note 9 – Variable Interest Entities. (2 ) |
Condensed Statement of Operations, and Cash Flows from Discontinued Operations | Condensed Combined Statement of Operations (dollars in millions) Years Ended December 31, 2020 2019 2018 Interest income $ - $ 3.4 $ 14.6 Interest expense - 2.8 10.5 Rental income on operating leases - - 0.5 Other income - 3.0 19.9 Operating expenses - 2.9 35.7 Income (loss) from discontinued operations before provision (benefit) for income taxes - 0.7 (11.2 ) Provision (benefit) for income taxes - 0.2 (2.5 ) Income (loss) on sale of discontinued operation, net of taxes - - (16.3 ) Income (loss) from discontinued operations, net of taxes $ - $ 0.5 $ (25.0 ) Condensed Combined Statement of Cash Flows (dollars in millions) Years Ended December 31, 2020 2019 2018 Net cash flows (used in) provided by operations $ - $ (4.4 ) $ 7.2 Net cash flows provided by investing activities - 54.9 148.7 |
MOB | |
Business Acquisition [Line Items] | |
Consideration and Net Assets Acquired | Consideration and Net Assets Acquired (dollars in millions) Original Purchase Measurement Period Adjusted Purchase Price Adjustment Price Purchase price $ 993.1 $ (7.0 ) $ 986.1 Recognized amounts of identifiable assets acquired and liabilities assumed, at fair value Cash and interest-bearing cash 123.1 - 123.1 Investment securities 1,717.6 - 1,717.6 Loans 6,297.9 - 6,297.9 Other assets 199.5 - 199.5 Total Assets $ 8,338.1 $ - $ 8,338.1 Deposits 6,992.9 - 6,992.9 Securities sold under agreements to repurchase 193.2 - 193.2 Other liabilities 93.1 0.6 93.7 Borrowings 290.0 - 290.0 Total liabilities $ 7,569.2 $ 0.6 $ 7,569.8 Total fair value of identifiable net assets 768.9 (0.6 ) 768.3 Intangible assets 102.6 - 102.6 Goodwill $ 121.6 $ (6.4 ) $ 115.2 |
Summary of Loan Valuations by Division in Each Segment | The following table presents the loan valuations by division in each segment. Loans (dollars in millions) UPB Fair Value Commercial Banking Commercial Finance $ 2,316.4 $ 2,249.4 Real Estate Finance 2,107.3 2,106.4 Consumer Banking Consumer and Community Banking 1,926.7 1,942.1 Total loans $ 6,350.4 $ 6,297.9 |
Summary of Key Valuation Input Assumptions by Division | The table below summarizes the key valuation input assumptions by division for the acquired loans, excluding the individually impaired loans: Discount Rate Severity Rate Prepayment Rate Default Rate Loan portfolio Range Weighted Avg. Range Weighted Avg. Range Weighted Avg. Range Weighted Avg. Commercial Banking Commercial Finance 3.25% -15.50% 4.33% 15.00% - 60.00% 18.59% 1.25% - 26.75% 17.99% 0.25% - 7.00% 1.90% Real Estate Finance 3.25% - 5.50% 3.86% 15.00% - 30.00% 18.37% 0.50% - 26.75% 17.77% 0.10% - 7.00% 2.67% Consumer Banking Consumer and Community Banking 2.50% - 6.75% 3.42% 5.00% - 35.00% 9.95% 1.50% - 30.0% 21.93% 0.05% - 7.00% 0.33% |
Summary of Intangible Assets Recorded in Conjunction with MOB Acquisition | The following table presents the intangible assets recorded in conjunction with the MOB Acquisition related to the valuation of core deposits, customer relationships and trade name. Intangible Assets (dollars in millions) Fair Value Estimated Useful Life Amortization Method Core deposit intangibles $ 96.1 10 years Straight line Customer relationships 3.5 7 years Accelerated Trade name 3.0 7 years Straight line Total intangible assets $ 102.6 |
Summary of Other Assets | The following table details the other assets acquired. Other Assets (dollars in millions) Adjusted Fair Value Right of use assets $ 45.5 Property, furniture and fixtures 27.4 Tax credit investments and investments in unconsolidated entities 23.9 Fair value of derivative financial instruments 19.9 Other 82.8 Total other assets $ 199.5 |
Selected Unaudited Pro Forma Financial Information | Selected Unaudited Pro Forma Financial Information for Consolidated CIT (dollars in millions) Years Ended December 31, 2020 2019 Interest income $ 1,799.0 $ 2,345.0 Non-interest income 1,351.4 1,293.4 Net (loss) income (529.8 ) 509.6 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of Loans by Product | The following tables and data as of December 31, 2020 include the loan balances acquired in the MOB Acquisition, which were recorded at fair value on the acquisition date. See Note 2 — Acquisition and Discontinued Operations Unless otherwise noted, loans held for sale are not included in the amounts presented throughout this note. Loans by Product (dollars in millions) December 31, 2020 December 31, 2019 Commercial loans $ 27,410.9 $ 22,765.1 Financing leases and leverage leases 2,318.0 2,254.4 Total commercial 29,728.9 25,019.5 Consumer loans 6,415.7 5,979.4 Total loans $ 36,144.6 $ 30,998.9 |
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, 2020 December 31, 2019 Domestic Foreign Total Domestic Foreign Total Commercial Banking $ 27,323.4 $ 1,313.1 $ 28,636.5 $ 22,866.0 $ 1,527.4 $ 24,393.4 Consumer Banking ( 1) 7,508.1 - 7,508.1 6,605.5 - 6,605.5 Total $ 34,831.5 $ 1,313.1 $ 36,144.6 $ 29,471.5 $ 1,527.4 $ 30,998.9 (1) The Consumer Banking segment includes certain commercial loans, primarily consisting of a portfolio of Small Business Administration ("SBA") loans. These loans are excluded from the Consumer loan balances and included in the Commercial loan balances in product related tables in this note. |
Components Of Net Investment | The following table presents selected components of the net investment in loans: Components of Net Investment (dollars in millions) December 31, December 31, 2020 2019 Unearned income $ (373.9 ) $ (430.0 ) Unamortized (discounts) premium (434.4 ) 30.0 Accretable yield on PCI loans ( 1) — (745.4 ) Net unamortized deferred costs 35.8 50.9 (1) |
Loans - Delinquency Status | Past Due and Non-accrual Loans For additional information on reporting of past due and non-accrual loans, see discussion of the CARES Act and Interagency Statement in Note 1 – Business and Summary of Significant Accounting Policies The table that follows presents portfolio delinquency status, regardless of accrual or non-accrual classification: Loans - Delinquency Status (dollars in millions) Past Due 30-59 60-89 90 or more Total Past Due Current ( 1) PCI Loans ( 2) Total December 31, 2020 Commercial Banking Commercial Finance $ 59.9 $ 2.8 $ 122.0 $ 184.7 $ 16,059.2 $ — $ 16,243.9 Real Estate Finance 71.7 38.3 82.4 192.4 7,361.7 — 7,554.1 Business Capital 113.6 40.2 16.6 170.4 4,607.4 — 4,777.8 Rail — — — — 60.7 — 60.7 Total Commercial Banking 245.2 81.3 221.0 547.5 28,089.0 — 28,636.5 Consumer Banking Legacy Consumer Mortgages 61.0 17.6 79.7 158.3 1,535.5 — 1,693.8 Consumer and Community Banking 173.1 10.6 34.0 217.7 5,596.6 — 5,814.3 Total Consumer Banking 234.1 28.2 113.7 376.0 7,132.1 — 7,508.1 Total $ 479.3 $ 109.5 $ 334.7 $ 923.5 $ 35,221.1 $ — $ 36,144.6 December 31, 2019 Commercial Banking Commercial Finance $ 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 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 Mortgages 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 (1) The “Current” balance at December 31, 2020 includes $459 million of loans with active COVID-19 related payment deferment (comprised of $347 million Commercial Banking and $112 million Consumer Banking loans) that are not classified as past due given no contractual payment is due during the deferment period. In addition, total loans with active COVID-19 related deferment of approximately $49 million, $3 million, and $26 million are in the 30-59,60-89, and 90 or more past due balances, respectively (2) Prior to 2020, |
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 that are 90 or more days past due guaranteed by government agencies are not placed on non-accrual status. Loans on Non-Accrual Status (dollars in millions) ( 1 ) December 31, 2019 CECL Adoption ( 2 ) MOB Acquisition January 1, 2020 December 31, 2020 With No Allowance Recorded ( 3 ) Commercial Banking Commercial Finance ( 4 ) $ 246.7 $ — $ 61.1 $ 307.8 $ 239.4 $ 8.0 Business Capital 60.9 — — 60.9 72.8 1.5 Real Estate Finance 0.4 0.6 — 1.0 83.2 16.0 Total Commercial Banking 308.0 0.6 61.1 369.7 395.4 25.5 Consumer Banking Consumer and Community Banking 4.0 — 7.2 11.2 53.4 38.2 Legacy Consumer Mortgages ( 5 ) 14.3 81.6 — 95.9 139.3 30.0 Total Consumer Banking 18.3 81.6 7.2 107.1 192.7 68.2 Total $ 326.3 $ 82.2 $ 68.3 $ 476.8 $ 588.1 $ 93.7 Repossessed assets and OREO ( 6 ) 20.1 7.9 Total non-performing assets $ 346.4 $ 596.0 Commercial loans past due 90 days or more accruing $ 25.6 $ 92.5 Consumer loans past due 90 days or more accruing 11.3 11.3 Total accruing loans past due 90 days or more ( 7 ) $ 36.9 $ 103.8 (1) Accrued interest that was reversed when the loan went to non-accrual status was $6.2 million for the year ended December 31, 2020. (2) CECL adoption is before the MOB Acquisition, detail of which is separately disclosed. Upon adoption, the increase in non-accrual loans relates to loans previously classified as PCI that historically were not subject to non-accrual classification. (3) Includes loans that have been charged off to their net realizable value and loans where the collateral or enterprise value exceeds the expected pay off value. (4) Factored receivables within our Commercial Finance division do not accrue interest and therefore are not considered within non-accrual loan balances; however factored receivables are considered for credit provisioning purposes. Loans that are 90 or more days past due guaranteed by government agencies are not placed on non-accrual status. (5) December 31, 2020 (6) Balances consist primarily of single-family residential OREO. (7) Balance as of December 31, 2020 includes $65 million of loans that have or had COVID-19 related deferments (i.e. active deferment or exited). |
Schedule of Loans in Process of Foreclosure | Loans in Process of Foreclosure (dollars in millions) December 31, December 31, 2020 2019 Loans in process of foreclosure ( 1) $ 22.9 $ 38.9 (1) |
Impaired Loans | The following table contains prior period information about impaired loans and the related allowance for loan losses by class, pre-adoption of CECL. CECL did not carry forward the concept of impaired loans, therefore only the prior period is presented. PCI loans, which were excluded from impaired loan balances, included loans that were identified as impaired at the date of the OneWest Transaction (the “Acquisition Date”) for which the Company applied 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) Average Recorded Investment December 31, 2019 Recorded Investment Unpaid Principal Balance Related Allowance Year Ended December 31, 2019 With no related allowance recorded: Commercial Banking Commercial Finance $ 46.5 $ 69.0 $ — $ 68.0 Business Capital 4.8 5.5 — 6.0 Real Estate Finance — — — 1.6 Consumer Banking Consumer and Community Banking 4.0 4.0 — 4.9 Legacy Consumer Mortgages 20.6 22.4 — 24.7 With an allowance recorded: Commercial Banking Commercial Finance 223.9 267.3 86.0 166.6 Business Capital 19.4 19.4 10.0 11.6 Real Estate Finance — — — 0.8 Consumer Banking Consumer and Community Banking 0.1 0.2 — — Legacy Consumer Mortgages 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 (1) |
Purchased Credit Impaired Loans With Deteriorated Credit Quality | PCD Loans acquired during the year ended December 31, 2020 (dollars in millions) Commercial Banking Consumer Banking Total Par value (UPB) $ 347.8 $ 58.4 $ 406.2 Allowance for credit losses ( 1) (56.1 ) (2.7 ) (58.8 ) (Discount) premium (9.0 ) 2.4 (6.6 ) Purchase price $ 282.7 $ 58.1 $ 340.8 (1) Under the CECL standard, the initial ACL recognized on PCD assets was $58.8 million, of which $38.6 million was charged-off for loans that had been written-off prior to acquisition (whether full or partial) or which met CIT’s charge-off policy at the time of acquisition. After considering loans that were immediately charged-off upon acquisition, the net impact was $20.2 million of additional PCD reserves Pre-adoption of CECL, 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 Credit Losses. PCI 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 |
Schedule Of Changes To The Accretable Yield For PCI Loans | Changes in the accretable yield for PCI loans are summarized below. Prior to 2020, the changes in the accretable yield was presented for PCI loans. See the Company’s 2019 Form 10-K, Note 1 — Business and Summary of Significant Accounting Policies Change in Accretable Yield (dollars in millions) Years Ended December 31, 2019 2018 Balance, beginning of period $ 903.8 $ 1,063.7 Accretion into interest income (146.9 ) (167.5 ) Reclassification from non-accretable difference 19.2 17.8 Disposals and Other (30.7 ) (10.2 ) Balance, end of period $ 745.4 $ 903.8 |
Schedule Of Recorded Investments For TDRs | The following table presents the recorded investment of TDRs, excluding those within a trial modification period of $4.5 million, $5.5 million and $4.2 million as of December 31, 2020, 2019 and 2018: TDRs (dollars in millions) December 31, 2020 December 31, 2019 December 31, 2018 Recorded Investment % Total TDR Recorded Investment % Total TDR Recorded Investment % Total TDR Commercial Banking $ 109.8 82 % $ 129.5 87 % $ 70.4 80 % Consumer Banking 24.6 18 % 19.3 13 % 17.2 20 % Total $ 134.4 100 % $ 148.8 100 % $ 87.6 100 % Percent non-accrual 73 % 71 % 79 % Modifications (dollars in millions) Years Ended 2020 2019 2018 Recorded investment related to modifications qualifying as TDRs that occurred during the years $ 88.4 $ 89.9 $ 69.0 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 $ 24.0 $ 23.2 $ 21.8 |
Commercial Loans | |
Loans - By Risk Rating | The following table summarizes commercial loans disaggregated by year of origination and by risk rating. The consumer loan LTV ratios and FICO scores by year of origination are also presented below. Following the Company’s adoption of CECL, prior period risk rating disclosures were not conformed to current disclosure requirements and will continue to be reported under previously applicable accounting guidance. The tables reflect the amortized cost basis of the loans. Accrued interest receivable (within other assets) is reported separately from the loan’s amortized cost basis. Commercial Loans— Risk Rating by Class (dollars in millions) Grade Term Loans by Origination Year Revolving Loans Converted December 31, 2020 2020 2019 2018 2017 2016 2015 & Prior Revolving Loans to Term Loans Total ( 1) Commercial Finance Pass $ 4,819.9 $ 2,132.5 $ 2,000.1 $ 678.0 $ 181.1 $ 745.6 $ 3,329.4 $ 61.1 $ 13,947.7 Special Mention 81.2 206.4 210.8 18.4 30.8 119.9 313.3 2.8 983.6 Classified-accrual 82.4 161.7 49.8 169.2 107.2 183.1 314.2 5.6 1,073.2 Classified-non-accrual 0.5 9.0 53.9 9.6 22.1 60.7 83.6 — 239.4 Total Commercial Finance 4,984.0 2,509.6 2,314.6 875.2 341.2 1,109.3 4,040.5 69.5 16,243.9 Real Estate Finance Pass 1,075.9 2,089.2 1,212.3 663.5 480.3 493.0 28.1 — 6,042.3 Special Mention 65.9 333.7 126.4 225.5 93.5 46.3 — — 891.3 Classified-accrual 0.3 184.4 124.2 74.6 78.0 75.8 — — 537.3 Classified-non-accrual — 33.3 0.2 15.3 0.2 28.0 6.2 — 83.2 Total Real Estate Finance 1,142.1 2,640.6 1,463.1 978.9 652.0 643.1 34.3 — 7,554.1 Business Capital Pass 1,678.9 1,371.4 809.5 299.3 106.3 15.6 14.4 0.8 4,296.2 Special Mention 29.6 67.2 42.4 32.4 12.3 0.3 — — 184.2 Classified-accrual 34.3 80.8 71.5 25.9 11.2 0.9 — — 224.6 Classified-non-accrual 8.0 33.0 17.1 10.9 2.8 1.0 — — 72.8 Total Business Capital 1,750.8 1,552.4 940.5 368.5 132.6 17.8 14.4 0.8 4,777.8 Rail Pass — 0.8 — 0.1 3.1 56.7 — — 60.7 Total Rail — 0.8 — 0.1 3.1 56.7 — — 60.7 Total Commercial Banking Pass 7,574.7 5,593.9 4,021.9 1,640.9 770.8 1,310.9 3,371.9 61.9 24,346.9 Special Mention 176.7 607.3 379.6 276.3 136.6 166.5 313.3 2.8 2,059.1 Classified-accrual 117.0 426.9 245.5 269.7 196.4 259.8 314.2 5.6 1,835.1 Classified-non-accrual 8.5 75.3 71.2 35.8 25.1 89.7 89.8 — 395.4 Total Commercial Banking 7,876.9 6,703.4 4,718.2 2,222.7 1,128.9 1,826.9 4,089.2 70.3 28,636.5 Consumer Banking - Consumer and Community Banking ( 2) Pass 507.6 157.1 104.5 62.3 50.0 67.3 0.1 — 948.9 Special Mention — 13.1 4.3 2.8 2.6 0.9 — — 23.7 Classified-accrual 21.0 19.3 17.0 11.0 13.8 17.6 0.3 — 100.0 Classified-non-accrual — 11.8 3.0 3.2 1.0 0.8 — — 19.8 Total Consumer Banking 528.6 201.3 128.8 79.3 67.4 86.6 0.4 — 1,092.4 Commercial Loans Pass 8,082.3 5,751.0 4,126.4 1,703.2 820.8 1,378.2 3,372.0 61.9 25,295.8 Special Mention 176.7 620.4 383.9 279.1 139.2 167.4 313.3 2.8 2,082.8 Classified-accrual 138.0 446.2 262.5 280.7 210.2 277.4 314.5 5.6 1,935.1 Classified-non-accrual 8.5 87.1 74.2 39.0 26.1 90.5 89.8 — 415.2 Total Commercial Loans $ 8,405.5 $ 6,904.7 $ 4,847.0 $ 2,302.0 $ 1,196.3 $ 1,913.5 $ 4,089.6 $ 70.3 $ 29,728.9 (1) Amortized cost excludes accrued interest receivable of $48.6 million that is included in other assets, of which $6.1 million relates to loan modifications made in response to the COVID-19 pandemic. (2) Primarily SBA loans. Commercial Loans — Risk Rating by Class (dollars in millions) Grade Pass Special Mention Classified- accrual Classified- non-accrual PCI Loans ( 1) Total December 31, 2019 Commercial Banking Commercial Finance $ 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 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 (1) PCI Loans had $20.7 million of non-criticized loans and $7.1 million of criticized loans (special mention or classified |
Consumer Loans | |
Loans - By Risk Rating | Following the Company’s adoption of CECL, the comparative prior period financial information was not adjusted for the Consumer Loan LTV Distribution and will continue to be reported under previously applicable accounting guidance. Consumer Loans LTV Distribution (dollars in millions) Term Loans Amortized Cost Basis by Origination Year Revolving Loans Converted LTV Range 2020 2019 2018 2017 2016 2015 & Prior Revolving Loans to Term Loans Total ( 4) December 31, 2020 Legacy Consumer Mortgages Greater than 125% $ — $ — $ — $ — $ — $ 37.5 $ — $ 0.4 $ 37.9 101% – 125% — — — — — 60.5 — 1.1 61.6 80% – 100% — — — — — 189.2 — 3.4 192.6 Less than 80% — — — — — 1,344.3 — 34.7 1,379.0 Government-guaranteed ( 1) — — — — — 20.8 — — 20.8 No LTV available ( 2) — — — — — 0.1 — 1.7 1.8 Total Legacy Consumer Mortgages — — — — — 1,652.4 — 41.3 1,693.7 Consumer and Community Banking Greater than 125% — — — — — — — — — 101% – 125% — — — — — — — — — 80% – 100% 21.3 17.1 3.5 — — 1.7 2.4 — 46.0 Less than 80% 1,328.4 1,022.7 445.8 507.2 380.1 778.8 41.5 — 4,504.5 Government-guaranteed ( 1) 12.0 33.7 15.7 68.2 9.5 7.8 — — 146.9 No LTV available ( 2) — — 0.2 0.2 0.2 0.7 1.3 — 2.6 No LTV required ( 3) 2.0 1.0 1.0 0.6 1.0 13.4 3.0 — 22.0 Total Consumer and Community Banking 1,363.7 1,074.5 466.2 576.2 390.8 802.4 48.2 — 4,722.0 Total Consumer Loans (4) $ 1,363.7 $ 1,074.5 $ 466.2 $ 576.2 $ 390.8 $ 2,454.8 $ 48.2 $ 41.3 $ 6,415.7 (1) (2) (3) (4) Prior to 2020, certain consumer SFR loans were “covered loans” for which the Company was eligible for reimbursement for a portion of certain future losses with indemnifications provided by the FDIC under loss share agreements (“LSAs”). At December 31, 2019, the covered loans reflected below related to the FDIC-assisted transactions of First Federal Bank of California in December 2009 (“First Federal Transaction”) and La Jolla Bank, FSB in February 2010 (“La Jolla Transaction”) for which the indemnification period ended in December 2019 and February 2020, respectively. All of the LSAs have expired and there are no covered loans at December 31, 2020. Consumer Loans LTV Distribution (dollars in millions) Covered Loans 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 (1) Certain Consumer Loans do not have LTV's. The following table provides a summary of the FICO score distribution for consumer loans by origination year and revolving loans. The average FICO score was 755 and 751 for the total consumer loans included below at December 31, 2020 and December 31, 2019, respectively. For loans with active deferment arrangements due to COVID-19, the average FICO score of the borrowers was 695 at December 31, 2020. These borrower’s FICO scores are not impacted during the payment deferral period as the credit reporting will not be negatively impacted given no contractual payments are due. Current FICO Score Distribution (dollars in millions) Term Loans Amortized Cost Basis by Origination Year Revolving Loans Converted Current FICO 2020 2019 2018 2017 2016 2015 & Prior Revolving Loans to Term Loans Total (4) December 31, 2020 Legacy Consumer Mortgages Greater than or equal to 730 $ — $ — $ — $ — $ — $ 729.1 $ — $ 17.9 $ 747.0 Greater than or equal to 660 and less than 730 — — — — — 499.3 — 13.0 512.3 Less than 660 — — — — — 369.4 — 9.4 378.8 Government-guaranteed (1) — — — — — 20.8 — - 20.8 No FICO score available (2) — — — — — 33.8 — 1.0 34.8 Total Legacy Consumer Mortgages — — — — — 1,652.4 — 41.3 1,693.7 Consumer and Community Banking Greater than or equal to 730 1,152.3 923.7 372.3 453.5 339.7 596.7 34.2 — 3,872.4 Greater than or equal to 660 and less than 730 186.3 104.7 68.7 46.3 34.5 125.6 10.0 — 576.1 Less than 660 11.0 11.2 8.4 7.3 5.5 40.8 3.1 — 87.3 Government-guaranteed (1) 12.0 33.7 15.7 68.2 9.5 7.8 — — 146.9 No FICO score available (2) 0.1 0.5 0.1 0.3 0.6 18.2 0.2 — 20.0 FICO score not required (3) 2.0 0.7 1.0 0.6 1.0 13.3 0.7 — 19.3 Total Consumer and Community Banking 1,363.7 1,074.5 466.2 576.2 390.8 802.4 48.2 — 4,722.0 Total Consumer Loans (4) $ 1,363.7 $ 1,074.5 $ 466.2 $ 576.2 $ 390.8 $ 2,454.8 $ 48.2 $ 41.3 $ 6,415.7 (1) (2) (3) (4) FICO Score Distribution at December 31, 2019 (dollars in millions) Covered Loans Non-covered Loans Total Consumer FICO Range Non-PCI PCI Non-PCI PCI Loans December 31, 2019 Legacy Consumer Mortgages Greater than or equal to 730 $ 202.2 $ 98.6 $ 320.0 $ 252.5 $ 873.3 Greater than or equal to 660 and less than 730 71.3 98.8 123.2 324.7 618.0 Less than 660 16.8 89.8 51.0 370.5 528.1 Government-guaranteed ( 1) — — 24.5 — 24.5 No FICO score available ( 2) 17.5 6.5 5.2 8.4 37.6 Total Legacy Consumer Mortgages 307.8 293.7 523.9 956.1 2,081.5 Consumer and Community Banking Greater than or equal to 730 — — 3,319.0 — 3,319.0 Greater than or equal to 660 and less than 730 — — 332.6 — 332.6 Less than 660 — — 29.6 — 29.6 Government-guaranteed ( 1) — — 193.8 — 193.8 No FICO score available — — 21.8 — 21.8 FICO score not required ( 2) — — 1.1 — 1.1 Total Consumer and Community Banking — — 3,897.9 — 3,897.9 Total Consumer Banking $ 307.8 $ 293.7 $ 4,421.8 $ 956.1 $ 5,979.4 (1) (2) |
Allowance For Credit Losses (Ta
Allowance For Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Credit Loss [Abstract] | |
Schedule of Allowance for Credit Losses and Recorded Investment in Finance Receivables | Allowance for Credit Losses and Recorded Investment in Loans (dollars in millions) Commercial Banking Consumer Banking Total Commercial Banking Consumer Banking Total Year Ended December 31, 2020 Year Ended December 31, 2019 Balance - beginning of period $ 460.4 $ 22.2 $ 482.6 $ 460.2 $ 29.5 $ 489.7 CECL adoption ( 1) 74.7 148.9 223.6 - - - Provision (benefit) for credit losses ( 2) 834.2 (33.9 ) 800.3 117.3 (6.5 ) 110.8 The initial ACL recognized on PCD assets ( 3) 18.8 1.4 20.2 - - - Other ( 4) (32.1 ) (3.8 ) (35.9 ) 5.0 (0.6 ) 4.4 Gross charge-offs ( 4) (488.0 ) (7.1 ) (495.1 ) (151.2 ) (2.7 ) (153.9 ) Recoveries 65.7 2.4 68.1 29.1 2.5 31.6 Balance - end of period $ 933.7 $ 130.1 $ 1,063.8 $ 460.4 $ 22.2 $ 482.6 Allowance Balance at December 31, 2020 Allowance Balance at December 31, 2019 Loans individually evaluated for impairment $ 100.8 $ 5.5 $ 106.3 $ 96.0 $ 0.2 $ 96.2 Loans collectively evaluated for impairment 832.9 124.6 957.5 354.6 14.4 369.0 PCI loans ( 5) - - - 9.8 7.6 17.4 Allowance for credit losses 933.7 130.1 1,063.8 460.4 22.2 482.6 Allowance for off-balance sheet credit exposures $ 76.8 $ 1.5 $ 78.3 $ 36.4 $ 0.7 $ 37.1 Loans at December 31, 2020 Loans at December 31, 2020 Loans at December 31, 2019 Loans individually evaluated for impairment $ 346.3 $ 86.4 $ 432.7 $ 294.6 $ 26.1 $ 320.7 Loans collectively evaluated for impairment 28,290.2 7,421.7 35,711.9 24,071.0 5,329.6 29,400.6 PCI loans ( 5) - - - 27.8 1,249.8 1,277.6 Ending balance $ 28,636.5 $ 7,508.1 $ 36,144.6 $ 24,393.4 $ 6,605.5 $ 30,998.9 Percent of loans to total loans 79.2 % 20.8 % 100.0 % 78.7 % 21.3 % 100.0 % (1) CECL adoption was before the MOB Acquisition. (2) Included in the provision for credit losses was $33.4 million for the year ended December 31, 2020, related to the provision for off-balance sheet credit exposures, which is not part of the ACL and is offset in the “Other” line. The provision for off-balance sheet credit exposures was $(4.4) million year ended December 31, 2019. (3) Under the CECL standard, the initial ACL recognized on PCD assets was $58.8 million, of which $38.6 million was charged-off for loans that had been written-off prior to acquisition (whether full or partial) or which met CIT’s charge-off policy at the time of acquisition. After considering loans that were immediately charged-off upon acquisition, the net impact was $20.2 million of additional PCD reserves on January 1, 2020. (4) “Other” primarily includes the transfer of the “Allowance for off balance sheet credit exposures,” which represents credit loss reserves for unfunded lending commitments, DPA’s, and letters of credit, to other liabilities. (5) Represents PCI loans under ASC 310-30. PCI loans transitioned to PCD loans under CECL and are evaluated for impairment consistent with the non-PCD loans under the Company’s policies surrounding loans individually and collectively evaluated. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, December 31, 2020 2019 ROU assets $ 198.8 $ 194.9 Lease liabilities 249.9 242.6 Weighted-average remaining lease terms 9 Years 9 Years Weighted-average discount rate 4.32 % 4.77 % Supplemental Cash Flow Information (dollars in millions): Years Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities $ 56.3 $ 45.8 ROU assets obtained in exchange for new lease liabilities 18.1 18.0 |
Maturities of Lease Liabilities | The following table presents maturities of lease liabilities at December 31, 2020: Maturity of Lease Liabilities (dollars in millions) Years Ending December 31, 2021 $ 44.6 2022 35.7 2023 33.9 2024 32.7 2025 30.4 Thereafter 131.7 Total undiscounted lease payments $ 309.0 Difference between undiscounted cash flows and discounted cash flows (59.1 ) Lease liabilities, at present value $ 249.9 |
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) Years Ended December 31, 2020 2019 Operating lease cost ( 1) $ 50.6 $ 43.1 Variable lease cost 19.6 10.6 Sublease income (11.3 ) (14.9 ) Total operating lease expense $ 58.9 $ 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 $1.6 billion at December 31, 2020 and $1.4 billion at December 31, 2019), by equipment type. Operating Lease Equipment (dollars in millions) December 31, December 31, 2020 2019 Railcars and locomotives $ 7,098.9 $ 6,706.0 Other equipment 737.7 613.7 Total ( 1) $ 7,836.6 $ 7,319.7 (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, December 31, 2020 2019 Lease receivables $ 1,986.0 $ 1,905.3 Unguaranteed residual assets 287.4 309.4 Total net investment in finance leases 2,273.4 2,214.7 Leveraged lease net investment ( 1) 44.6 39.7 Total $ 2,318.0 $ 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) Years Ended December 31, 2020 2019 Lease income – Operating leases $ 765.7 $ 800.8 Variable lease income – Operating leases ( 1) 45.2 56.9 Rental income on operating leases 810.9 857.7 Interest income - Sales type and direct financing leases 170.6 194.0 Variable lease income included in Other non-interest income ( 2) 42.8 46.0 Leveraged lease income 11.4 8.8 Total lease income $ 1,035.7 $ 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, 2020. 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 Ending December 31, 2021 $ 615.5 2022 456.1 2023 299.9 2024 192.0 2025 99.4 Thereafter 187.2 Total $ 1,850.1 |
Maturity Analysis of Lease Receivable Payments - Sales Type and Direct Financing Leases | Maturity Analysis of Lease Receivable Payments - Sales Type and Direct Financing Leases (dollars in millions) Years Ending December 31, 2021 $ 884.3 2022 611.1 2023 374.0 2024 184.0 2025 89.0 Thereafter 33.9 Total undiscounted cash flows 2,176.3 Difference between undiscounted cash flows and discounted cash flows 190.3 Lease receivables, at present value $ 1,986.0 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Investment Securities | Investments include debt and equity securities. Note 1 — Business and Summary of Significant Accounting Policies Carrying Value of Investment Securities (dollars in millions) December 31, December 31, 2020 2019 AFS Securities Debt securities $ 6,673.5 $ 6,011.8 Securities carried at fair value with changes in net income Equity securities — 47.2 Non-marketable securities ( 1) 215.5 217.8 Total investment securities $ 6,889.0 $ 6,276.8 ( 1 ) Non-marketable investments include restricted stock of the FRB and FHLB carried at cost of $181.7 million at December 31, 2020 and $187.9 million at December 31, 2019. The remaining non-marketable investments without readily determinable fair values measured under the measurement exception totaled $33.8 million at December 31, 2020 and $29.9 million at December 31, 2019. |
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, 2020 2019 2018 Interest income - debt securities ( 1) $ 114.9 $ 187.9 $ 163.1 Interest income - interest-bearing cash 11.1 37.1 42.3 Dividends - equity securities 5.2 8.5 13.2 Total interest and dividends $ 131.2 $ 233.5 $ 218.6 |
Amortized Cost and Fair Value of Securities Available-For-Sale | The following table presents amortized cost and fair value of debt securities AFS. Amortized Cost and Fair Value (dollars in millions) Amortized Cost ( 1) Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2020 Debt securities AFS Mortgage-backed securities U.S. government/sponsored agency – Residential $ 2,503.4 $ 76.5 $ (0.1 ) $ 2,579.8 U.S. government/sponsored agency – Commercial 1,725.0 56.3 (0.5 ) 1,780.8 U.S. government/sponsored agency obligations 1,474.2 0.5 (3.9 ) 1,470.8 U.S. Treasury securities 505.9 — (3.2 ) 502.7 Supranational securities 330.2 0.2 (2.9 ) 327.5 Agency asset-backed securities 1.5 0.1 — 1.6 Corporate bonds - foreign 10.3 — — 10.3 Total debt securities AFS $ 6,550.5 $ 133.6 $ (10.6 ) $ 6,673.5 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 |
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity Dates | (1 ) The amortized cost is net of the ACL. ACL relating to debt securities as of December 31, 2020 was insignificant. The following table presents the debt securities AFS by contractual maturity dates: Maturities - (dollars in millions) December 31, 2020 Amortized Cost Fair Value Weighted Average Yield Mortgage-backed securities — U.S. government/sponsored agency – Residential After 5 through 10 years $ 5.7 $ 6.0 3.09 % After 10 years 2,497.7 2,573.8 2.34 % Total 2,503.4 2,579.8 2.35 % Mortgage-backed securities — U.S. government/sponsored agency – Commercial After 1 through 5 years 32.4 35.0 3.54 % After 5 through 10 years 242.7 265.2 3.03 % After 10 years 1,449.9 1,480.6 1.73 % Total 1,725.0 1,780.8 1.95 % U.S. government/sponsored agency obligations After 1 through 5 years 420.4 420.6 0.63 % After 5 through 10 years 1,053.8 1,050.2 0.96 % Total 1,474.2 1,470.8 0.86 % U.S. Treasury securities 1 year or less 8.1 8.1 0.13 % After 1 through 5 years 104.6 104.4 0.28 % After 5 through 10 years 393.2 390.2 0.50 % Total 505.9 502.7 0.45 % Supranational securities 1 year or less 20.5 20.5 0.15 % After 1 through 5 years 56.9 57.0 0.47 % After 5 through 10 years 252.8 250.0 0.85 % Total 330.2 327.5 0.74 % Agency asset-backed securities After 10 years 1.5 1.6 2.24 % Total 1.5 1.6 2.24 % Corporate bonds — foreign 1 year or less 10.3 10.3 6.03 % Total 10.3 10.3 6.03 % Total debt securities AFS $ 6,550.5 $ 6,673.5 1.69 % |
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, 2020 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 $ 39.3 $ (0.1 ) $ — $ — U.S. government/sponsored agency - Commercial 267.3 (0.5 ) — — U.S. government/sponsored agency obligations 628.5 (3.9 ) — — U.S. Treasury securities 489.9 (3.2 ) — — Supranational securities 245.4 (2.9 ) — — Total debt securities AFS $ 1,670.4 $ (10.6 ) $ - $ - 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 ) |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Summary of Other Assets | The following table presents the components of other assets. Other Assets (dollars in millions) December 31, December 31, 2020 2019 Fair value of derivative financial instruments $ 431.6 $ 190.7 Tax credit investments ( 1) 427.0 365.6 Right of use assets 198.8 194.9 Property, furniture and fixtures 187.0 160.0 Counterparty receivables 174.1 126.5 Prepaid expenses 169.9 98.3 Intangible assets, net 134.9 66.0 Current and deferred federal and state tax assets 60.8 55.6 Other ( 2) 464.4 381.6 Total other assets $ 2,248.5 $ 1,639.2 (1) in this balance are LIHTC of $299.2 million and $263.3 million as of December 31, 2020 and December 31, 2019, respectively, that provide tax benefits to investors in the form of tax deductions from operating losses and tax credits. During 2020, 2019 and 2018, the Company recorded $27.4 million, $29.8 million and $29.1 million, respectively, in tax provisions under the proportional amortization method. During 2020, 2019 and 2018, the Company recognized total tax benefits of $35.9 million, $35.5 million and $34.2 million, respectively, which included tax credits of $26.7 million, $28.0 million, and $27.0 million recorded in income taxes. 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. Refer to Note 1 – Business and Summary of Significant Accounting Policy for additional information. See also Note 9 – Variable Interest Entities. (2 ) |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 Interest-bearing $ 39,686.9 $ 33,546.4 Non-interest bearing 3,384.7 1,593.1 Total deposits $ 43,071.6 $ 35,139.5 |
Schedule of Maturities of Time Deposits | The following table presents the maturities of time deposits. Deposits —Maturities (dollars in millions) December 31, 2020 Time deposits, remaining contractual maturity: Within one year $ 7,638.3 One to two years 1,387.0 Two to three years 434.0 Three to four years 647.4 Four to five years 315.4 Over five years 3.1 Total Time deposits $ 10,425.2 |
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, 2020 Time Deposits: Three months or less $ 2,243.2 After three months through six months 1,446.3 After six months through twelve months 1,539.8 After twelve months 939.8 Total $ 6,169.1 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 December 31, 2019 Securities Partnership Investment Securities Partnership Investment Agency securities $ 4,362.2 $ — $ 5,338.6 $ — Tax credit equity investments — 311.5 — 277.1 Equity investments — 111.9 — 84.0 Total Assets $ 4,362.2 $ 423.4 $ 5,338.6 $ 361.1 Commitments to tax credit investments ( 1) $ — $ 168.3 $ — $ 120.1 Total Liabilities $ — $ 168.3 $ — $ 120.1 Maximum loss exposure $ 4,362.2 $ 423.4 $ 5,338.6 $ 361.1 (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. |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Borrowings | The following table presents the carrying value of outstanding borrowings. Borrowings (dollars in millions) December 31, 2020 December 31, 2019 CIT Group Inc. Subsidiaries Total Total Unsecured borrowings: Senior $ 3,923.3 $ 313.0 $ 4,236.3 $ 3,967.9 Subordinated notes 494.9 — 494.9 494.4 Secured borrowings: FHLB advances — 1,100.0 1,100.0 1,650.0 Other secured and structured financings — 6.1 6.1 361.1 Total borrowings $ 4,418.2 $ 1,419.1 $ 5,837.3 $ 6,473.4 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 June 2024 3.929% June 2020 500.0 March 2025 5.250% March 2018 500.0 September 2025 2.969% September 2019 315.2 Weighted average rate and total 4.617% $ 4,212.2 |
Schedule of Borrowings with 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, 2020 (dollars in millions) Total 2021 2022 2023 2024 Thereafter Senior Unsecured notes $ 4,263.6 $ 500.0 $ 1,147.0 $ 750.0 $ 1,000.0 $ 866.6 Subordinated unsecured notes 500.0 — — — — 500.0 FHLB advances 1,100.0 — 1,100.0 — — — Other secured and structured financings 7.5 — — — 7.5 — Total Long-term borrowings $ 5,871.1 $ 500.0 $ 2,247.0 $ 750.0 $ 1,007.5 $ 1,366.6 |
Schedule of FHLB Balances | The following table presents FHLB balances. FHLB Balances Summary (dollars in millions) December 31, December 31, 2020 2019 Lending Assets High Quality Liquid Securities Total Total Total borrowing capacity $ 5,494.1 $ 1,681.2 $ 7,175.3 $ 6,350.5 Less: Advances (1,100.0 ) — (1,100.0 ) (1,650.0 ) Available capacity $ 4,394.1 $ 1,681.2 $ 6,075.3 $ 4,700.5 Pledged assets (1) $ 7,083.6 $ 1,784.4 $ 8,868.0 $ 6,987.6 Weighted Average Rate 0.82 % 2.04 % (1) December 31, 2019 pledged assets included $50.4 million of HQL securities. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Notional Amount and Fair Values of Derivative Financial Instruments | The following table presents notional amount and fair value of derivative financial instruments on a gross basis. Notional Amount and Fair Value of Derivative Financial Instruments (dollars in millions) December 31, 2020 December 31, 2019 Notional Amount Asset Fair Value Liability Fair Value Notional Amount Asset Fair Value Liability Fair Value Derivatives designated as hedging instruments (Qualifying hedges) Foreign exchange contracts $ 33.9 $ - $ (0.3 ) $ 676.3 $ - $ (10.6 ) Interest rate contracts ( 1)(3) 500.0 - - 1,250.0 - - Total derivatives designated as hedging instruments 533.9 - (0.3 ) 1,926.3 - (10.6 ) Derivatives not designated as hedging instruments (Non-qualifying hedges) Interest rate contracts ( 1)(3) 21,192.9 429.6 (72.2 ) 17,588.1 176.9 (14.5 ) Foreign exchange contracts 247.8 1.7 (6.0 ) 982.9 13.7 (6.1 ) Other contracts ( 2) 875.8 0.3 (0.7 ) 714.7 0.1 (0.8 ) Total derivatives not designated as hedging instruments 22,316.5 431.6 (78.9 ) 19,285.7 190.7 (21.4 ) Gross derivatives fair values presented in the Consolidated Balance Sheets $ 22,850.4 431.6 (79.2 ) $ 21,212.0 190.7 (32.0 ) Less: Gross amounts offset in the Consolidated Balance Sheets - - - - Net amount presented in the Consolidated Balance Sheet 431.6 (79.2 ) 190.7 (32.0 ) Less: Amounts subject to master netting agreements ( 4) (4.7 ) 4.7 (11.8 ) 11.8 Less: Cash collateral pledged (received) subject to master netting agreements ( 5) - 42.9 (1.2 ) 14.3 Total net derivative fair value $ 426.9 $ (31.6 ) $ 177.7 $ (5.9 ) (1) Fair value balances include accrued interest. (2) Other derivative contracts not designated as hedging instruments include risk participation agreements. (3) The Company accounts for swap contracts cleared by the Chicago Mercantile Exchange and LCH Clearnet as “settled-to-market”. As a result, variation margin payments are characterized as settlement of the derivative exposure and variation margin balances are netted against the corresponding derivative mark-to-market balances. Gross amounts of recognized assets and liabilities were lowered by $20.5 million and $339.9 million, respectively at December 31, 2020 and $16.2 million and $142.8 million, respectively at December 31, 2019. (4) The Company’s derivative transactions are governed by ISDA agreements that allow for net settlements of certain payments as well as offsetting of all contracts with a given counterparty in the event of bankruptcy or default of one of the two parties to the transaction. We believe our ISDA agreements meet the definition of a master netting arrangement or similar agreement for purposes of the above disclosure. (5) In conjunction with the ISDA agreements described above, the Company has entered into collateral arrangements with its counterparties, which provide for the exchange of cash depending on change in the market valuation of the derivative contracts outstanding. Such collateral is available to be applied in settlement of the net balances upon an event of default of one of the counterparties. |
Gains (Losses) of Fair Value Hedges Recognized as Interest Expense | Gains (Losses) on Qualifying Hedges (dollars in millions) Years Ended December 31, 2020 2019 2018 Recognized on derivatives ( 1) $ 0.2 $ 3.6 $ 0.3 Recognized on hedged item (0.2 ) (3.6 ) (0.3 ) Net recognized on fair value hedges (No ineffectiveness) $ - $ - $ - (1) Gains (losses) exclude amounts related to interest settlements on derivatives. |
Carrying Value of Hedged Items and Associated Cumulative Hedging Adjustment Related to Fair Value Hedges | The following table presents the carrying value of hedged items and associated cumulative hedging adjustment related to fair value hedges. Cumulative Fair Value Hedging Adjustments (dollars in millions) Cumulative Fair Value Hedging Adjustment Included in the Carrying Value of Hedged Items Carrying Value of Hedged Items ( 1) Currently Designated No Longer Designated December 31, 2020 Long-term Debt $ 1,534.4 $ 1.1 $ 1.8 December 31, 2019 Long-term Debt $ 1,747.0 $ 2.1 $ 1.5 $1,033.9 million |
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 operations and the consolidated statements of comprehensive income (loss) 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 Amounts Recorded in Other Reclassified from Comprehensive Total Change in AOCI to Income Income AOCI for Period Contract Type Year ended December 31, 2020 Foreign currency forward contracts - net investment hedges $ - $ (2.8 ) $ (2.8 ) 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 |
Derivative Instrument Gains and Losses on Non Qualifying Hedges Recognized as Other Non-interest Income | The following table presents gains (losses) of non-qualifying hedges recognized as other non-interest income on the consolidated statements of operations. Gains (Losses) on Non-Qualifying Hedges (dollars in millions) Years Ended December 31, 2020 2019 2018 Interest rate contracts $ 17.3 $ 11.7 $ 17.1 Foreign currency forward contracts (12.8 ) 25.5 (13.5 ) Other contracts (0.5 ) 1.7 13.2 Total non-qualifying hedges – statement of operations impact $ 4.0 $ 38.9 $ 16.8 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 Accrued expenses and accounts payable $ 546.4 $ 565.4 Lease liabilities 249.9 242.6 Commitment to fund tax credit investments 167.7 119.5 Current and deferred taxes payable 122.1 167.2 Accrued interest payable 88.2 92.9 Fair value of derivative financial instruments 79.2 32.0 Allowance for off-balance sheet credit exposure 78.3 37.1 Other ( 1 ) 423.1 448.0 Total other liabilities $ 1,754.9 $ 1,704.7 (1) |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 Assets Residential MBS – U.S. government/sponsored agency $ 2,579.8 $ — $ 2,579.8 $ — U.S. treasury securities 502.7 7.8 494.9 — Other securities 3,591.0 — 3,580.7 10.3 Total debt securities AFS 6,673.5 7.8 6,655.4 10.3 Securities carried at fair value with changes recorded in net income — — — — Interest rate contracts — non-qualifying hedges 429.6 — 428.1 1.5 Other derivative — non-qualifying hedges 2.0 — 1.7 0.3 Total derivative assets at fair value — non-qualifying hedges (1) 431.6 — 429.8 1.8 Total $ 7,105.1 $ 7.8 $ 7,085.2 $ 12.1 Liabilities Interest rate contracts — non-qualifying hedges $ (72.2 ) $ — $ (72.2 ) $ — Other derivative— non-qualifying hedges (6.7 ) — (6.0 ) (0.7 ) Total derivative liabilities at fair value — non-qualifying hedges (1) (78.9 ) — (78.2 ) (0.7 ) Foreign currency forward contracts — net investment qualifying hedges (0.3 ) — (0.3 ) — Total derivative liabilities at fair value — qualifying hedges (0.3 ) — (0.3 ) — Total $ (79.2 ) $ — $ (78.5 ) $ (0.7 ) 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 ) (1) Derivative fair values include accrued interest. |
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. 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, 2020 Assets Debt Securities — AFS $ 10.3 Discounted cash flow Discount Rate 8.5% - 10.4% 9.5% Derivative assets — non qualifying 1.8 Internal valuation model Borrower Rate 1.9% - 3.6% 2.7% Total Assets $ 12.1 Liabilities Derivative liabilities — non-qualifying $ (0.7 ) Internal valuation model Total Liabilities $ (0.7 ) 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 ) |
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 Derivative Assets- Non- Qualifying Derivative Liabilities- Non- Qualifying FDIC True-up Liability Balance as of December 31, 2019 $ 67.1 $ 0.3 $ (0.8 ) $ (68.8 ) Included in earnings 0.1 1.5 0.1 (0.2 ) Included in comprehensive income (1.2 ) — — — Maturity and settlements (54.0 ) — — 69.0 Impairment (1.7 ) — — — Balance as of December 31, 2020 $ 10.3 $ 1.8 $ (0.7 ) $ — 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 ) |
Assets Measured at Fair Value on a Non-Recurring Basis | The following table presents carrying value of assets measured at estimated fair value on a non-recurring basis for which gains and losses from a non-recurring fair value adjustment have been recorded in the periods. Assets Measured at Fair Value on a Non-recurring Basis (dollars in millions) Fair Value Measurements Total Level 1 Level 2 Level 3 Total Gains (Losses) December 31, 2020 Assets held for sale $ 701.6 $ — $ — $ 701.6 $ (112.7 ) Loans 106.4 — — 106.4 (55.6 ) Mortgage servicing rights 4.3 — — 4.3 (4.5 ) ROU assets 4.4 — — 4.4 (6.1 ) Total $ 816.7 $ — $ — $ 816.7 $ (178.9 ) 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 ) |
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. Carrying Value and Fair Value of Financial Instruments (dollars in millions) Estimated Fair Value Carrying Value Level 1 Level 2 Level 3 Total December 31, 2020 Financial Assets Cash and interest bearing deposits $ 4,011.7 $ 4,011.7 $ — $ — $ 4,011.7 Assets held for sale (excluding leases) 720.0 — 14.5 706.2 720.7 Loans (excluding leases) (1) 32,812.9 — 1,332.1 32,285.4 33,617.5 Securities purchased under agreements to resell 150.0 — 150.0 — 150.0 Investment securities (2) 215.5 — — 215.5 215.5 Financial Liabilities Deposits (3) (43,086.0 ) — — (43,224.0 ) (43,224.0 ) Borrowings (3) (5,911.1 ) — (6,371.3 ) (8.0 ) (6,379.3 ) Credit balances of factoring clients (1,719.9 ) — — (1,719.9 ) (1,719.9 ) 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) (1) 28,297.4 — 1,114.5 27,684.3 28,798.8 Securities purchased under agreement to resell 950.0 — 950.0 — 950.0 Investment securities (2) 217.8 — — 217.8 217.8 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 ) (1) Carrying value of loans (excluding leases) is net of the ACL. (2) Non-marketable investments carried at cost. See Assets and Liabilities Measured at Fair Value on a Recurring Basis in this note above for debt securities AFS and securities carried at fair value with changes recorded in net income. (3) Deposits and borrowings include accrued interest, which is included in Other liabilities. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2019 162,188,287 (67,445,723 ) 94,742,564 Common stock issuance - acquisition - 3,094,697 3,094,697 Restricted stock issued 923,505 - 923,505 Shares held to cover taxes on vesting restricted shares and other - (349,440 ) (349,440 ) Employee stock purchase plan participation 198,069 - 198,069 Common stock - December 31, 2020 163,309,861 (64,700,466 ) 98,609,395 |
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, 2020 December 31, 2019 Gross Unrealized Income Taxes Net Unrealized Gross Unrealized Income Taxes Net Unrealized Foreign currency translation adjustments $ (2.6 ) $ (6.5 ) $ (9.1 ) $ (1.9 ) $ (7.2 ) $ (9.1 ) Changes in benefit plans net loss and prior service (cost)/credit (42.5 ) (3.6 ) (46.1 ) (51.3 ) (1.3 ) (52.6 ) Net gains (loss) on securities AFS 123.0 (32.1 ) 90.9 13.6 (4.0 ) 9.6 Total accumulated other comprehensive income (loss) $ 77.9 $ (42.2 ) $ 35.7 $ (39.6 ) $ (12.5 ) $ (52.1 ) 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, 2019 $ (9.1 ) $ (52.6 ) $ 9.6 $ (52.1 ) AOCI activity before reclassifications — 6.1 108.9 115.0 Amounts reclassified from AOCI — 0.4 (27.6 ) (27.2 ) Net current period AOCI — 6.5 81.3 87.8 Balance as of December 31, 2020 $ (9.1 ) $ (46.1 ) $ 90.9 $ 35.7 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 ) |
Reclassifications out of Accumulated Other Comprehensive Income | Reclassifications Out of AOCI (dollars in millions) Years Ended December 31, 2020 2019 Gross Amount Tax Net Amount Gross Amount Tax Net Amount Income Statement Line Item Foreign currency translation adjustments gains (losses) AOCI activity before reclassification $ (0.7 ) $ 0.7 $ — $ 4.8 $ 7.0 $ 11.8 Net change (0.7 ) 0.7 — 4.8 7.0 11.8 Changes in benefit plan net loss and prior service (cost)/credit losses AOCI activity before reclassification 8.3 (2.2 ) 6.1 23.6 (6.0 ) 17.6 Reclassifications Out of AOCI 0.5 (0.1 ) 0.4 — — — Operating expenses Net change 8.8 (2.3 ) 6.5 23.6 (6.0 ) 17.6 Unrealized net gains on securities AFS AOCI activity before reclassification 146.5 (37.6 ) 108.9 135.5 (35.1 ) 100.4 Reclassifications Out of AOCI (37.1 ) 9.5 (27.6 ) (4.8 ) 1.2 (3.6 ) Other non-interest income Net change 109.4 (28.1 ) 81.3 130.7 (33.9 ) 96.8 Net current period OCI $ 117.5 $ (29.7 ) $ 87.8 $ 159.1 $ (32.9 ) $ 126.2 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 2020 2019 Common Equity Tier 1 Capital $ 5,192.8 $ 5,444.4 $ 4,907.7 $ 4,879.6 Tier 1 Capital 5,717.8 5,969.3 4,907.7 4,879.6 Total Capital 6,863.2 6,983.3 5,760.1 5,644.3 Risk-Weighted Assets 51,847.0 45,262.0 43,962.5 37,150.5 Common Equity Tier 1 Capital Ratio: Actual 10.0 % 12.0 % 11.2 % 13.1 % Effective minimum ratios under Basel III guidelines ( 1) 7.0 % 7.0 % 7.0 % 7.0 % BHC and PCA Well-Capitalized (2) (2) 6.5 % 6.5 % Tier 1 Capital Ratio: Actual 11.0 % 13.2 % 11.2 % 13.1 % Effective minimum ratios under Basel III guidelines ( 1) 8.5 % 8.5 % 8.5 % 8.5 % BHC and PCA Well-Capitalized 6.0 % 6.0 % 8.0 % 8.0 % Total Capital Ratio: Actual 13.2 % 15.4 % 13.1 % 15.2 % Effective minimum ratios under Basel III guidelines ( 1) 10.5 % 10.5 % 10.5 % 10.5 % BHC and PCA Well-Capitalized 10.0 % 10.0 % 10.0 % 10.0 % Tier 1 Leverage Ratio: Actual 9.5 % 11.9 % 8.9 % 11.0 % Required minimum ratio for capital adequacy purposes ( 1) 4.0 % 4.0 % 4.0 % 4.0 % BHC and PCA Well-Capitalized (2) (2) 5.0 % 5.0 % (1) Required minimum ratios include stated minimums of 4.5%, 6% and 8% for CET1 capital, Tier 1 capital and Total capital ratios, respectively, plus the fully phased-in capital conservation buffer of 2.5%. (2) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 2018 (Loss) income from continuing operations $ (615.3 ) $ 529.4 $ 472.1 Preferred stock dividends 31.1 18.9 18.9 (Loss) income from continuing operations available to common shareholders (646.4 ) 510.5 453.2 Income (loss) from discontinued operations - 0.5 (25.0 ) Net (loss) income available to common shareholders $ (646.4 ) $ 511.0 $ 428.2 Weighted Average Common Shares Outstanding Basic shares outstanding 98,405 96,503 117,653 Stock-based awards ( 1 )(2 ) - 418 1,124 Diluted shares outstanding 98,405 96,921 118,777 Basic Earnings Per Common Share Data (Loss) income from continuing operations $ (6.57 ) $ 5.29 $ 3.85 Income (loss) from discontinued operations - 0.01 (0.21 ) Basic (loss) income per common share $ (6.57 ) $ 5.30 $ 3.64 Diluted Earnings Per Common Share Data ( 2) (Loss) income from continuing operations $ (6.57 ) $ 5.27 $ 3.82 Loss from discontinued operations - - (0.21 ) Diluted (loss) income per common share $ (6.57 ) $ 5.27 $ 3.61 (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 0.9 million, 0.8 million, and 0.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. (2) Due to the net loss for the year ended December 31, 2020, the diluted earnings per share calculation excluded an insignificant amount of weighted average restricted shares, performance shares, and options, as they were anti-dilutive. The basic weighted average shares outstanding and net loss for the year ended December 31, 2020 were utilized for the diluted earnings per share calculation. |
Non-Interest Income (Tables)
Non-Interest Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Noninterest Income [Abstract] | |
Schedule Of Non-Interest Income | Non-interest Income (dollars in millions) Years Ended December 31, 2020 2019 2018 Rental income on operating leases $ 810.9 $ 857.7 $ 1,009.0 Other non-interest income 540.5 415.2 373.8 Total non-interest income $ 1,351.4 $ 1,272.9 $ 1,382.8 Other non-interest income Fee income $ 133.2 $ 116.7 $ 103.5 Gains on leasing equipment, net of impairments 92.5 71.1 59.5 Factoring commissions 83.3 98.8 102.4 BOLI income 39.9 29.1 25.5 Gains on investment securities, net of impairments 38.1 6.2 15.3 Property tax income 17.9 22.2 - Other income 135.6 71.1 67.6 Total other non-interest income $ 540.5 $ 415.2 $ 373.8 |
Non-Interest Expenses (Tables)
Non-Interest Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Noninterest Expense [Abstract] | |
Schedule Of Non-Interest Expenses | Non-Interest Expense (dollars in millions) Years Ended December 31, 2020 2019 2018 Depreciation on operating lease equipment $ 327.4 $ 308.6 $ 311.1 Maintenance and other operating lease expenses 212.5 180.7 230.4 Operating expenses 1,309.9 1,113.2 1,070.0 Goodwill impairment 485.1 - - (Gain) loss on debt extinguishments and deposit redemptions (14.7 ) 0.5 38.6 Total non-interest expenses $ 2,320.2 $ 1,603.0 $ 1,650.1 Operating expenses Compensation and benefits $ 649.4 $ 566.8 $ 558.4 Technology 157.0 135.8 131.5 Professional fees 104.3 75.9 82.7 Net occupancy expense 93.5 91.3 65.6 Insurance 81.5 51.1 68.3 Restructuring costs 37.2 15.1 - Advertising and marketing 34.1 40.4 47.6 Intangible asset amortization 33.9 23.2 23.9 Property tax expense 19.1 24.1 - Other expenses 99.9 89.5 92.0 Total operating expenses $ 1,309.9 $ 1,113.2 $ 1,070.0 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 2018 U.S. operations $ (759.2 ) $ 609.2 $ 471.4 Non-U.S. operations 55.8 14.7 165.6 Income from continuing operations before provision / (benefit) for income taxes $ (703.4 ) $ 623.9 $ 637.0 |
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, 2020 2019 2018 Current U.S. federal income tax provision / (benefit) $ (16.0 ) $ (10.9 ) $ 29.5 Deferred U.S. federal income tax provision / (benefit) (52.2 ) 118.1 56.1 Total federal income tax provision / (benefit) (68.2 ) 107.2 85.6 Current state and local income tax provision / (benefit) 22.3 (2.1 ) 8.4 Deferred state and local income tax provision / (benefit) (44.9 ) 51.4 24.8 Total state and local income tax provision / (benefit) (22.6 ) 49.3 33.2 Total non-U.S. income tax provision / (benefit) 2.7 (61.8 ) 37.6 Total provision / (benefit) for income taxes $ (88.1 ) $ 94.7 $ 156.4 Continuing operations $ (88.1 ) $ 94.5 $ 164.9 Discontinued operations — 0.2 (8.5 ) Total provision / (benefit) for income taxes $ (88.1 ) $ 94.7 $ 156.4 |
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 2020 2019 2018 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 $ (703.4 ) $ (147.7 ) 21.0 % $ 623.9 $ 131.1 21.0 % $ 637.0 $ 133.8 21.0 % Increase (decrease) due to: State and local income taxes, net of federal income tax (benefit) provision — (30.5 ) 4.3 % — 32.1 5.1 % — 30.2 4.7 % Non-deductible goodwill — 80.8 (11.5 )% — — — % — — — % Domestic tax credits — (12.6 ) 1.8 % — (11.1 ) (1.8 )% — (13.2 ) (2.1 )% Deferred tax asset adjustment — 21.2 (3.0 )% — — — % — — — % Effect of tax law changes — (1.7 ) 0.3 % — — — % — — — % Difference in tax rates applicable to non-U.S. earnings — 0.4 (0.1 )% — (1.4 ) (0.2 )% — 7.2 1.1 % International income subject to U.S. tax — — — % — 1.1 0.2 % — 8.7 1.4 % Unrecognized tax expense (benefit) — (3.6 ) 0.5 % — (12.1 ) (1.9 )% — 1.5 0.2 % Deferred income taxes on international unremitted earnings — — — (53.4 ) (8.6 )% — 12.4 1.9 % International restructuring — — — — — % — 13.6 2.2 % Valuation allowances — (1.0 ) 0.1 % — (10.0 ) (1.6 )% — (28.9 ) (4.4 )% Other — 6.6 (0.9 )% — 18.2 2.9 % — (0.4 ) (0.1 )% Effective Tax Rate — continuing operations $ (88.1 ) 12.5 % $ 94.5 15.1 % $ 164.9 25.9 % Discontinued Operation Federal income tax rate $ — $ — — % $ 0.7 $ 0.1 21.0 % $ (33.4 ) $ (7.0 ) 21.0 % Increase (decrease) due to: State and local income taxes, net of federal income tax benefit — — — % — 0.1 4.7 % — (1.5 ) 4.3 % Effective Tax Rate — discontinued operations $ — — % $ 0.2 25.7 % $ (8.5 ) 25.3 % Total Effective Tax Rate $ (88.1 ) 12.5 % $ 94.7 15.2 % $ 156.4 25.9 % |
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, 2020 2019 Deferred Tax Assets: Net operating loss (NOL) carry forwards $ 410.7 $ 686.2 Basis difference in loans 101.7 177.6 Provision for credit losses 313.7 130.6 Accrued liabilities and reserves 100.3 87.2 Deferred stock-based compensation 14.9 18.0 Domestic tax credits 102.7 117.3 Capital loss carryforward 2.8 2.5 Goodwill and intangible assets 18.9 — Capitalized costs 218.0 — Other 61.9 48.3 Total gross deferred tax assets 1,345.6 1,267.7 Deferred Tax Liabilities: Operating leases (1,214.0 ) (1,153.4 ) Loans and direct financing leases (23.6 ) (20.8 ) Basis difference in federal home loan bank stock (5.5 ) (5.5 ) Non-U.S. unremitted earnings — (0.6 ) Unrealized net gains on securities AFS (30.4 ) (5.7 ) Goodwill and intangibles — (23.3 ) Other (29.3 ) (25.0 ) Total deferred tax liabilities (1,302.8 ) (1,234.3 ) Total net deferred tax asset before valuation allowances 42.8 33.4 Less: valuation allowances (111.0 ) (198.5 ) Net deferred tax liability after valuation allowances $ (68.2 ) $ (165.1 ) |
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, 2019 $ 13.4 $ 6.5 $ 19.9 Additions for tax positions related to prior years 1.0 0.9 1.9 Reductions for tax positions of prior years (0.5 ) (0.3 ) (0.8 ) Expiration of statutes of limitations (3.8 ) (0.9 ) (4.7 ) Settlements 0.2 0.1 0.3 Foreign currency revaluation 0.1 — 0.1 Balance at December 31, 2020 $ 10.4 $ 6.3 $ 16.7 |
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. December 31, Jurisdiction 2020 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, 2020 | |
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 2020 2019 2020 2019 Change in benefit obligation Benefit obligation at beginning of year $ 425.8 $ 414.0 $ 31.3 $ 29.8 Interest cost 12.2 15.8 0.9 1.2 Actuarial (gain) / loss 21.5 26.5 2.2 3.1 Benefits paid (27.1 ) (29.7 ) (3.3 ) (3.9 ) Other (1.0 ) (0.8 ) 1.0 1.1 Benefit obligation at end of year 431.4 425.8 32.1 31.3 Change in plan assets Fair value of plan assets at beginning of period 379.8 333.4 — — Actual return on plan assets 50.0 70.0 — — Employer contributions 7.0 6.9 2.3 2.8 Benefits paid (27.2 ) (29.7 ) (3.3 ) (3.9 ) Other (1.0 ) (0.8 ) 1.0 1.1 Fair value of plan assets at end of period 408.6 379.8 — — Funded status at end of year ( 1) $ (22.8 ) $ (46.0 ) $ (32.1 ) $ (31.3 ) Information for pension plans with a benefit obligation in excess of plan assets Projected benefit obligation $ 78.4 $ 425.8 $ 32.1 $ 31.3 Accumulated benefit obligation $ 78.4 $ 425.8 N/A N/A Fair value of plan assets $ — $ 379.8 N/A N/A N/A – Not Applicable (1) Company assets of $ 78.6 million and $ 79.3 million as of December 31, 20 20 and 201 9 , respectively, related to the non-qualified U.S. 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 2020 2019 2018 2020 2019 2018 Interest cost $ 12.2 $ 15.8 $ 14.7 $ 0.9 $ 1.2 $ 1.2 Expected return on plan assets (18.2 ) (16.7 ) (18.9 ) — — — Other ( 1) 1.5 2.0 1.3 (0.8 ) (1.9 ) (1.0 ) Net periodic benefit cost (credit) (4.5 ) 1.1 (2.9 ) 0.1 (0.7 ) 0.2 Other Changes in Plan Assets and Benefit Obligations Recognized in OCI Net loss/(gain) (10.3 ) (26.8 ) 26.2 2.2 3.1 (4.1 ) Amortization, settlement or curtailment recognition (1.5 ) (2.0 ) (1.3 ) 0.8 1.9 1.0 Total recognized in OCI (11.8 ) (28.8 ) 24.9 3.0 5.0 (3.1 ) Total recognized in net periodic benefit cost and OCI $ (16.3 ) $ (27.7 ) $ 22.0 $ 3.1 $ 4.3 $ (2.9 ) |
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, 2020, 2019 and 2018 are primarily due to the following factors: Significant Gains and Losses Affecting the Benefit Obligation (dollars in millions) 2020 2019 2018 Asset (Gains)/Losses $ (31.7 ) $ (53.3 ) $ 42.2 Discount Rate Decrease/(Increase) 32.6 39.0 (21.5 ) Interest Crediting Rate (Decrease)/Increase (6.4 ) (8.3 ) 4.3 Other (6.3 ) (6.2 ) (0.1 ) (Increase)/Decrease in OCI $ (11.8 ) $ (28.8 ) $ 24.9 |
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 2020 2019 2020 2019 Discount rate 2.21 % 3.00 % 2.25 % 3.00 % Interest crediting rate 1.00 % 1.75 % N/A N/A Pre-65 N/A N/A 5.60 % 5.80 % Post-65 N/A N/A 6.00 % 6.50 % 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 2020 2019 2020 2019 Discount rate 3.00 % 4.00 % 3.00 % 4.00 % Expected long-term return on plan assets 5.00 % 5.25 % N/A N/A Interest crediting rate 1.75 % 2.75 % N/A N/A |
Asset Fair Value Measurements | The tables below set forth asset fair value measurements. Fair Value Measurements (dollars in millions) December 31, 2020 Level 1 Level 2 Level 3 Not Classified ( 1 ) Total Fair Value Cash $ 4.4 $ — $ — $ — $ 4.4 Common Collective Trust, measured at NAV — — — 404.2 404.2 $ 4.4 $ — $ — $ 404.2 $ 408.6 December 31, 2019 Cash $ 1.6 $ — $ — $ — $ 1.6 Common Collective Trust, measured at NAV — — — 378.2 378.2 $ 1.6 $ — $ — $ 378.2 $ 379.8 (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 2021 $ 27.8 $ 2.4 $ 0.2 2022 26.5 2.3 0.1 2023 27.3 2.2 0.1 2024 26.3 2.1 0.1 2025 27.5 2.1 0.1 2026 – 2030 127.0 9.5 0.2 |
Summary of Restricted Stock and RSU Activity | The following tables summarize restricted stock and RSU activity for 2020 and 2019: Stock and Cash — Settled Awards Outstanding Stock-Settled Awards Cash-Settled Awards December 31, 2020 Number of Shares Weighted Average Grant Date Value Number of Shares Weighted Average Grant Date Value Unvested at beginning of period 1,806,252 $ 50.14 11,974 $ 50.86 Vested / unsettled awards at beginning of period 207,797 41.58 — — PSUs - granted to employee 191,624 49.77 — — PSUs - incremental for performance above 2012-14 targets (35,769 ) 41.84 — — RSUs - granted to employees 903,846 45.69 — — RSUs - granted to directors 77,354 15.00 26,119 14.74 Forfeited / cancelled (103,781 ) 48.97 — — Vested / settled awards (923,492 ) 45.17 (9,857 ) 50.37 Vested / unsettled awards (202,243 ) 51.06 — — Unvested at end of period 1,921,588 $ 48.18 28,236 $ 17.62 December 31, 2019 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 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Commitments | The accompanying table summarizes credit-related commitments and other purchase and funding commitments. Commitments (dollars in millions) December 31, 2020 December 31, 2019 Due to Expire Within One Year After One Year Total Outstanding Total Outstanding Financing Commitments Financing assets (excluding leases) $ 2,813.4 $ 4,894.9 $ 7,708.3 $ 6,459.7 Letters of credit Standby letters of credit 27.3 232.3 259.6 199.6 Other letters of credit 5.1 3.9 9.0 6.7 Deferred purchase agreements 1,929.4 — 1,929.4 2,060.6 Purchase and Funding Commitments Lessor commitments (1) $ 628.3 $ — $ 628.3 $ 813.7 (1) CIT’s purchase and funding commitments relate to the equipment leasing businesses’ commitments to fund finance leases and operating leases, and Rail’s railcar manufacturer purchase commitments. |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 Interest income $ 1,299.4 $ 373.7 $ 125.9 $ 1,799.0 Interest expense (benefit) 501.5 (29.0 ) 260.8 733.3 Provision (benefit) for credit losses 834.2 (33.9 ) - 800.3 Rental income on operating leases 810.9 - - 810.9 Other non-interest income 359.2 76.1 105.2 540.5 Depreciation on operating lease equipment 327.4 - - 327.4 Maintenance and other operating lease expenses 212.5 - - 212.5 Operating expenses/(gain) loss on debt extinguishment and deposit redemption 802.8 386.6 105.8 1,295.2 Goodwill impairment 436.9 48.2 - 485.1 (Loss) income from continuing operations before provision (benefit) for income taxes $ (645.8 ) $ 77.9 $ (135.5 ) $ (703.4 ) Select Period End Balances Total assets $ 37,884.1 $ 7,829.7 $ 12,392.8 $ 58,106.6 Loans 28,636.5 7,508.1 - 36,144.6 Credit balances of factoring clients (1,719.9 ) - - (1,719.9 ) Assets held for sale 702.4 18.8 - 721.2 Operating lease equipment, net 7,836.6 - - 7,836.6 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 Total assets $ 32,616.7 $ 6,905.0 $ 11,311.1 $ 50,832.8 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 Total assets $ 31,917.0 $ 6,995.5 $ 9,624.9 $ 48,537.4 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 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. 2020 $ 57,291.9 $ 3,062.9 $ (759.2 ) $ (668.4 ) 2019 50,044.7 3,242.2 609.2 452.9 2018 47,676.3 3,080.7 471.4 344.7 Foreign 2020 814.7 87.5 55.8 53.1 2019 788.1 47.5 14.7 76.5 2018 861.1 192.5 165.6 127.4 Total Consolidated 2020 58,106.6 3,150.4 (703.4 ) (615.3 ) 2019 50,832.8 3,289.7 623.9 529.4 2018 48,537.4 3,273.2 637.0 472.1 (1) Includes assets of discontinued operations of $249.8 million at December 31, 2018. There were no assets of discontinued operations at December 31, 2020 and December 31, 2019. |
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill | Goodwill (dollars in millions) Commercial Banking Consumer Banking Total CIT December 31, 2018 $ 326.7 $ 43.2 $ 369.9 December 31, 2019 326.7 43.2 369.9 Additions ( 1) 110.3 4.9 115.2 Impairments (437.0 ) (48.1 ) (485.1 ) December 31, 2020 $ - $ - $ - (1) Includes measurement period adjustments related to the MOB Acquisition, as described below. |
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, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Core deposit intangibles $ 222.4 $ (107.4 ) $ 115.0 $ 126.3 $ (79.7 ) $ 46.6 Trade names 27.7 (15.9 ) 11.8 24.7 (12.7 ) 12.0 Customer relationships 27.4 (19.3 ) 8.1 23.9 (16.2 ) 7.7 Other - - - 7.4 (7.7 ) (0.3 ) Total intangible assets $ 277.5 $ (142.6 ) $ 134.9 $ 182.3 $ (116.3 ) $ 66.0 |
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, 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 Additions 96.1 3.0 3.5 - 102.6 Amortization ( 1) (27.7 ) (3.2 ) (3.1 ) 0.3 (33.7 ) December 31, 2020 $ 115.0 $ 11.8 $ 8.1 $ - $ 134.9 (1) Includes amortization recorded in operating expenses and operating lease rental income. |
Severance Liabilities (Tables)
Severance Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2018 220 $ 13.8 Additions and adjustments 36 15.1 Utilization (123 ) (11.9 ) December 31, 2019 133 17.0 Additions and adjustments 431 33.6 Utilization (171 ) (17.2 ) December 31, 2020 393 $ 33.4 |
Parent Company Financial Stat_2
Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 Assets: Cash and deposits $ 15.5 $ 15.3 Cash held at bank subsidiary 962.8 361.5 Receivables from nonbank subsidiaries 2,543.4 2,401.1 Receivables from bank subsidiaries 556.5 654.8 Investment in nonbank subsidiaries 898.3 1,155.2 Investment in bank subsidiaries 4,943.0 5,266.3 Goodwill — 46.9 Other assets 775.6 872.7 Total Assets $ 10,695.1 $ 10,773.8 Liabilities and Equity: Borrowings $ 4,418.2 $ 3,916.3 Liabilities to nonbank subsidiaries 219.1 158.6 Liabilities to bank subsidiaries 12.2 5.0 Other liabilities 322.7 354.9 Total Liabilities 4,972.2 4,434.8 Total Stockholders' Equity 5,722.9 6,339.0 Total Liabilities and Equity $ 10,695.1 $ 10,773.8 |
Condensed Parent Company Only Statements Of Operations And Comprehensive Income | Condensed Parent Company Only Statements of Operations and Comprehensive Income (dollars in millions) Years Ended December 31, 2020 2019 2018 Income Interest income from nonbank subsidiaries $ 99.0 $ 123.4 $ 113.4 Interest income from bank subsidiaries 14.4 16.2 19.2 Interest and dividends on interest bearing deposits and investments — 1.7 4.5 Dividends from nonbank subsidiaries 271.0 25.0 31.0 Dividends from bank subsidiaries — 356.0 218.6 Other non-interest income from subsidiaries 89.0 71.5 61.8 Other non-interest income 15.0 39.7 51.6 Total income 488.4 633.5 500.1 Expenses Interest expense 208.8 202.8 222.0 Interest expense on liabilities to subsidiaries 6.6 15.4 40.5 Other non-interest expenses 204.1 156.5 189.9 Total expenses 419.5 374.7 452.4 Income before income taxes and equity in undistributed net income of subsidiaries 68.9 258.8 47.7 Benefit for income taxes (42.6 ) (160.9 ) (76.5 ) Income before equity in undistributed net income of subsidiaries 111.5 419.7 124.2 Equity in undistributed net (loss) income of bank subsidiaries (449.7 ) 78.4 213.6 Equity in undistributed net (loss) income of nonbank subsidiaries (277.1 ) 31.8 109.3 Net (loss) income (615.3 ) 529.9 447.1 Other comprehensive income (loss), net of tax 87.8 126.2 (91.3 ) Comprehensive (loss) income $ (527.5 ) $ 656.1 $ 355.8 |
Condensed Parent Company Only Statements Of Cash Flows | Condensed Parent Company Only Statements of Cash Flows (dollars in millions) Years Ended December 31, 2020 2019 2018 Cash Flows from Operations: Net (loss) income $ (615.3 ) $ 529.9 $ 447.1 Equity in undistributed loss (earnings) of subsidiaries 726.8 (110.2 ) (322.9 ) Other operating activities, net 171.1 (53.0 ) 1,411.1 Net cash flows provided by operations 282.6 366.7 1,535.3 Cash Flows from Investing Activities: (Increase) decrease in investments in and advances to subsidiaries (45.0 ) (250.7 ) 502.5 Decrease in investment securities and securities purchased under agreements to resell — 100.0 50.0 Other investing activities (17.1 ) (16.9 ) (1.8 ) Net cash flows (used in) provided by investing activities (62.1 ) (167.6 ) 550.7 Cash Flows from Financing Activities: Proceeds from the issuance of term debt 500.0 98.6 1,879.5 Repayments of term debt — — (1,854.8 ) Net proceeds from issuance of preferred stock — 195.1 — Repurchase of common stock — (340.9 ) (1,626.7 ) Dividends paid (171.5 ) (146.7 ) (115.9 ) Net change in advances from subsidiaries 63.5 (303.0 ) (376.0 ) Other financing activities, net (11.0 ) (22.6 ) (71.7 ) Net cash flows provided by (used in) financing activities 381.0 (519.5 ) (2,165.6 ) Net increase (decrease) in cash and cash equivalents 601.5 (320.4 ) (79.6 ) Cash and cash equivalents, beginning of period 376.8 697.2 776.8 Cash and cash equivalents, end of period $ 978.3 $ 376.8 $ 697.2 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 Interest income $ 415.2 $ 423.3 $ 446.9 $ 513.6 Interest expense 139.6 165.5 202.5 225.7 (Benefit) provision for credit losses (0.5 ) 63.3 223.6 513.9 Rental income on operating leases 198.9 201.3 200.9 209.8 Other non-interest income 161.3 146.0 102.6 130.6 Depreciation on operating lease equipment 85.5 82.5 81.1 78.3 Maintenance and other operating lease expenses 54.2 48.6 56.1 53.6 Operating expenses 319.6 295.5 360.4 334.4 Goodwill impairment 140.4 - - 344.7 Loss (gain) on debt extinguishment and deposit redemption 0.1 - (14.8 ) - Provision (benefit) for income taxes 27.9 29.5 (73.2 ) (72.3 ) Net income (loss) $ 8.6 $ 85.7 $ (85.3 ) $ (624.3 ) Net (loss) income applicable to common shareholders $ (3.6 ) $ 82.9 $ (97.6 ) $ (628.1 ) (Loss) income from continuing operations applicable to common shareholders $ (3.6 ) $ 82.9 $ (97.6 ) $ (628.1 ) Net (loss) income per diluted share $ (0.04 ) $ 0.84 $ (0.99 ) $ (6.40 ) 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 |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies (Narrative) (Details) | Mar. 27, 2020 | Jan. 01, 2020USD ($) | Dec. 31, 2020USD ($)branchpaymentEntity | Dec. 31, 2019USD ($)Entity | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($)Entity | Jan. 01, 2018USD ($) | Dec. 31, 2017USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Decrease in retained earnings | $ (1,428,300,000) | $ (2,307,600,000) | ||||||
Period for which loans are considered past due | 30 days | |||||||
Period past due when loans go into non accrual status | 90 days | |||||||
Minimum value of loans to be individually assessed for impairment | $ 500,000 | |||||||
Right of use asset | 198,800,000 | 194,900,000 | $ 210,000,000 | |||||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | |||||||
Operating lease liability | $ 249,900,000 | 242,600,000 | $ 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 | |||||||
Number of consecutive scheduled payments for TDRs to remain reasonably assured | payment | 6 | |||||||
Reclassification of unrealized investment | $ 5,722,900,000 | $ 6,339,000,000 | $ 5,946,600,000 | $ 7,320,000,000 | ||||
Servicing advances, threshold period for allowance | 180 days | |||||||
Percentage of largest amount of tax benefit likely to be realized | 50.00% | |||||||
Consolidated VIEs | Entity | 0 | 0 | 0 | |||||
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 | |||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Reclassification of unrealized investment | $ 35,700,000 | $ (52,100,000) | $ (178,300,000) | (86,500,000) | ||||
Retained Earnings | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Reclassification of unrealized investment | $ 1,428,300,000 | 2,307,600,000 | $ 1,924,400,000 | 1,906,500,000 | ||||
Consumer Mortgage | ||||||||
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 | ||||||||
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 | |||||||
Consumer Loan | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Delinquency period for loan charge offs | 120 days | |||||||
Mortgages, Commercial Loans and Leases | Consumer and Small Commercial Borrower | ||||||||
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 | |||||||
ASU 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | |||||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2020 | |||||||
ASU 2018-17 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | |||||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2020 | |||||||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | false | |||||||
ASU 2019-04 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | |||||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2020 | |||||||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | false | |||||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Reclassification of unrealized investment | (82,400,000) | 200,000 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Reclassification of unrealized investment | (500,000) | |||||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Reclassification of unrealized investment | $ (82,400,000) | $ 700,000 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Decrease in retained earnings | $ 82,400,000 | |||||||
Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-01 | Accumulated Other Comprehensive Income (Loss) | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Reclassification of unrealized investment | $ (1,100,000) | |||||||
Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-01 | Retained Earnings | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Reclassification of unrealized investment | $ 1,100,000 | |||||||
MOB | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Purchase price of acquisition | $ 986,100,000 | |||||||
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 | |||||||
Maximum | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Additional payment deferral period offered CARES Act | 90 days | |||||||
Trial modification period for modified payment terms | 4 months | |||||||
Interest rate swap agreements maturity period | 2040 | |||||||
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 | Small Commercial Loans | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Delinquency period for loan charge offs | 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 | |||||||
Minimum | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Number of branches | branch | 80 | |||||||
Trial modification period for modified payment terms | 3 months | |||||||
Period past due when loans go into non accrual status | 90 days | |||||||
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% | |||||||
Interest rate swap agreements maturity period | 2021 | |||||||
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 | Small Commercial Loans | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Delinquency period for loan charge offs | 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 |
Acquisition and Discontinued _3
Acquisition and Discontinued Operations (Narrative) (Details) shares in Millions, $ in Millions | Jan. 01, 2020USD ($)branchshares | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | ||||||||||||
Goodwill | $ 369.9 | $ 369.9 | $ 369.9 | |||||||||
Interest income | $ 415.2 | $ 423.3 | $ 446.9 | $ 513.6 | 481.4 | $ 503.4 | $ 515.5 | $ 516.5 | $ 1,799 | 2,016.8 | 1,890.4 | |
Non-interest income | 1,351.4 | 1,272.9 | 1,382.8 | |||||||||
Net loss | (8.6) | (85.7) | 85.3 | 624.3 | (130.6) | (142.8) | (137.6) | (118.9) | 615.3 | (529.9) | (447.1) | |
Provision for credit losses | $ (0.5) | 63.3 | $ 223.6 | $ 513.9 | $ 22.6 | $ 26.6 | 28.6 | 33 | ||||
Restructuring charge | 37.2 | 15.1 | ||||||||||
Income (loss) from discontinued operations, net of taxes | $ 0.8 | $ (0.3) | 0.5 | (25) | ||||||||
Gain (loss) on sale of discontinued operations, net of taxes | (16.3) | |||||||||||
Discontinued Operations | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Income (loss) from discontinued operations, net of taxes | 0.5 | (25) | ||||||||||
Gain (loss) on sale of discontinued operations, net of taxes | (16.3) | |||||||||||
Operating expenses | $ 33 | |||||||||||
MOB | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Consideration paid | $ 986.1 | |||||||||||
Business combination, percentage of outstanding shares of common stock | 100.00% | |||||||||||
Original consideration paid in cash | $ 850 | |||||||||||
Assets acquired | 8,600 | |||||||||||
Goodwill | 115.2 | $ 115.2 | ||||||||||
Intangible assets | 102.6 | |||||||||||
Assumed liabilities | $ 7,569.8 | |||||||||||
Number of bank branches acquired | branch | 25 | |||||||||||
Cash and interest-bearing cash | $ 123.1 | |||||||||||
Investment securities | 1,717.6 | |||||||||||
Fair value of loans | 6,297.9 | |||||||||||
Fair value of property, furniture and fixtures | 14.9 | |||||||||||
Technology assets | 12.5 | |||||||||||
Deposits | 6,992.9 | |||||||||||
Certificate of deposits with maturity | 1,200 | |||||||||||
Certificate of deposits without maturity | 5,800 | |||||||||||
PAA premium | 14.3 | |||||||||||
Securities sold under agreements to repurchase | 193.2 | |||||||||||
Federal Home Loan Bank advances | 290 | |||||||||||
Other liabilities | $ 93.7 | |||||||||||
Interest income | 241 | |||||||||||
Non-interest income | 32.8 | |||||||||||
Net loss | 138.6 | |||||||||||
Provision for credit losses | 115.2 | |||||||||||
Integration costs | 59.2 | |||||||||||
Restructuring charge | $ 21.3 | $ 21.3 | ||||||||||
MOB | Minimum | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Certificates of deposit, maturity term | 30 days | |||||||||||
MOB | Maximum | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Certificates of deposit, maturity term | 5 years | |||||||||||
MOB | Common Stock | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business combination, number of shares issued | shares | 3.1 | |||||||||||
Business combination, value of shares issued | $ 141 |
Acquisition and Discontinued _4
Acquisition and Discontinued Operations (Consideration and Net Assets Acquired) (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Recognized amounts of identifiable assets acquired and liabilities assumed, at fair value | ||||
Goodwill | $ 369.9 | $ 369.9 | ||
MOB | ||||
Business Acquisition [Line Items] | ||||
Consideration paid | $ 986.1 | |||
Recognized amounts of identifiable assets acquired and liabilities assumed, at fair value | ||||
Cash and interest-bearing cash | 123.1 | |||
Investment securities | 1,717.6 | |||
Loans | 6,297.9 | |||
Other assets | 199.5 | |||
Total Assets | 8,338.1 | |||
Deposits | 6,992.9 | |||
Securities sold under agreements to repurchase | 193.2 | |||
Other liabilities | 93.7 | |||
Borrowings | 290 | |||
Total liabilities | 7,569.8 | |||
Total fair value of identifiable net assets | 768.3 | |||
Intangible assets | 102.6 | |||
Goodwill | 115.2 | $ 115.2 | ||
MOB | Original Purchase Price | ||||
Business Acquisition [Line Items] | ||||
Consideration paid | 993.1 | |||
Recognized amounts of identifiable assets acquired and liabilities assumed, at fair value | ||||
Cash and interest-bearing cash | 123.1 | |||
Investment securities | 1,717.6 | |||
Loans | 6,297.9 | |||
Other assets | 199.5 | |||
Total Assets | 8,338.1 | |||
Deposits | 6,992.9 | |||
Securities sold under agreements to repurchase | 193.2 | |||
Other liabilities | 93.1 | |||
Borrowings | 290 | |||
Total liabilities | 7,569.2 | |||
Total fair value of identifiable net assets | 768.9 | |||
Intangible assets | 102.6 | |||
Goodwill | 121.6 | |||
MOB | Measurement Period Adjustment | ||||
Business Acquisition [Line Items] | ||||
Consideration paid | (7) | |||
Recognized amounts of identifiable assets acquired and liabilities assumed, at fair value | ||||
Other liabilities | 0.6 | |||
Total liabilities | 0.6 | |||
Total fair value of identifiable net assets | (0.6) | |||
Goodwill | $ (6.4) | $ 6.4 |
Acquisition and Discontinued _5
Acquisition and Discontinued Operations (Summary of Loan Valuations by Division in Each Segment) (Details) - MOB $ in Millions | Jan. 01, 2020USD ($) |
Business Acquisition [Line Items] | |
Total loans, unpaid principal balance | $ 6,350.4 |
Loans | 6,297.9 |
Commercial Banking | Commercial Finance | |
Business Acquisition [Line Items] | |
Total loans, unpaid principal balance | 2,316.4 |
Loans | 2,249.4 |
Commercial Banking | Real Estate Finance | |
Business Acquisition [Line Items] | |
Total loans, unpaid principal balance | 2,107.3 |
Loans | 2,106.4 |
Consumer Banking | Consumer and Community Banking | |
Business Acquisition [Line Items] | |
Total loans, unpaid principal balance | 1,926.7 |
Loans | $ 1,942.1 |
Acquisition and Discontinued _6
Acquisition and Discontinued Operations (Summary of Key Valuation Input Assumptions by Division) (Details) - MOB | Jan. 01, 2020 |
Commercial Banking | Commercial Finance | Discount Rate | Minimum | |
Business Acquisition [Line Items] | |
Discount Rate | 3.25 |
Commercial Banking | Commercial Finance | Discount Rate | Maximum | |
Business Acquisition [Line Items] | |
Discount Rate | 15.50 |
Commercial Banking | Commercial Finance | Discount Rate | Weighted Avg. | |
Business Acquisition [Line Items] | |
Discount Rate | 4.33 |
Commercial Banking | Commercial Finance | Severity Rate | Minimum | |
Business Acquisition [Line Items] | |
Discount Rate | 15 |
Commercial Banking | Commercial Finance | Severity Rate | Maximum | |
Business Acquisition [Line Items] | |
Discount Rate | 60 |
Commercial Banking | Commercial Finance | Severity Rate | Weighted Avg. | |
Business Acquisition [Line Items] | |
Discount Rate | 18.59 |
Commercial Banking | Commercial Finance | Prepayment Rate | |
Business Acquisition [Line Items] | |
Discount Rate | 17.99 |
Commercial Banking | Commercial Finance | Prepayment Rate | Minimum | |
Business Acquisition [Line Items] | |
Discount Rate | 1.25 |
Commercial Banking | Commercial Finance | Prepayment Rate | Maximum | |
Business Acquisition [Line Items] | |
Discount Rate | 26.75 |
Commercial Banking | Commercial Finance | Default Rate | Minimum | |
Business Acquisition [Line Items] | |
Discount Rate | 0.25 |
Commercial Banking | Commercial Finance | Default Rate | Maximum | |
Business Acquisition [Line Items] | |
Discount Rate | 7 |
Commercial Banking | Commercial Finance | Default Rate | Weighted Avg. | |
Business Acquisition [Line Items] | |
Discount Rate | 1.90 |
Commercial Banking | Real Estate Finance | Discount Rate | Minimum | |
Business Acquisition [Line Items] | |
Discount Rate | 3.25 |
Commercial Banking | Real Estate Finance | Discount Rate | Maximum | |
Business Acquisition [Line Items] | |
Discount Rate | 5.50 |
Commercial Banking | Real Estate Finance | Discount Rate | Weighted Avg. | |
Business Acquisition [Line Items] | |
Discount Rate | 3.86 |
Commercial Banking | Real Estate Finance | Severity Rate | Minimum | |
Business Acquisition [Line Items] | |
Discount Rate | 15 |
Commercial Banking | Real Estate Finance | Severity Rate | Maximum | |
Business Acquisition [Line Items] | |
Discount Rate | 30 |
Commercial Banking | Real Estate Finance | Severity Rate | Weighted Avg. | |
Business Acquisition [Line Items] | |
Discount Rate | 18.37 |
Commercial Banking | Real Estate Finance | Prepayment Rate | |
Business Acquisition [Line Items] | |
Discount Rate | 17.77 |
Commercial Banking | Real Estate Finance | Prepayment Rate | Minimum | |
Business Acquisition [Line Items] | |
Discount Rate | 0.50 |
Commercial Banking | Real Estate Finance | Prepayment Rate | Maximum | |
Business Acquisition [Line Items] | |
Discount Rate | 26.75 |
Commercial Banking | Real Estate Finance | Default Rate | Minimum | |
Business Acquisition [Line Items] | |
Discount Rate | 0.10 |
Commercial Banking | Real Estate Finance | Default Rate | Maximum | |
Business Acquisition [Line Items] | |
Discount Rate | 7 |
Commercial Banking | Real Estate Finance | Default Rate | Weighted Avg. | |
Business Acquisition [Line Items] | |
Discount Rate | 2.67 |
Consumer Banking | Consumer and Community Banking | Discount Rate | Minimum | |
Business Acquisition [Line Items] | |
Discount Rate | 2.50 |
Consumer Banking | Consumer and Community Banking | Discount Rate | Maximum | |
Business Acquisition [Line Items] | |
Discount Rate | 6.75 |
Consumer Banking | Consumer and Community Banking | Discount Rate | Weighted Avg. | |
Business Acquisition [Line Items] | |
Discount Rate | 3.42 |
Consumer Banking | Consumer and Community Banking | Severity Rate | Minimum | |
Business Acquisition [Line Items] | |
Discount Rate | 5 |
Consumer Banking | Consumer and Community Banking | Severity Rate | Maximum | |
Business Acquisition [Line Items] | |
Discount Rate | 35 |
Consumer Banking | Consumer and Community Banking | Severity Rate | Weighted Avg. | |
Business Acquisition [Line Items] | |
Discount Rate | 9.95 |
Consumer Banking | Consumer and Community Banking | Prepayment Rate | |
Business Acquisition [Line Items] | |
Discount Rate | 21.93 |
Consumer Banking | Consumer and Community Banking | Prepayment Rate | Minimum | |
Business Acquisition [Line Items] | |
Discount Rate | 1.50 |
Consumer Banking | Consumer and Community Banking | Prepayment Rate | Maximum | |
Business Acquisition [Line Items] | |
Discount Rate | 30 |
Consumer Banking | Consumer and Community Banking | Default Rate | Minimum | |
Business Acquisition [Line Items] | |
Discount Rate | 0.05 |
Consumer Banking | Consumer and Community Banking | Default Rate | Maximum | |
Business Acquisition [Line Items] | |
Discount Rate | 7 |
Consumer Banking | Consumer and Community Banking | Default Rate | Weighted Avg. | |
Business Acquisition [Line Items] | |
Discount Rate | 0.33 |
Acquisition and Discontinued _7
Acquisition and Discontinued Operations (Summary of Intangible Assets Recorded in Conjunction with MOB Acquisition ) (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||
Intangible assets, Fair Value | $ 102.6 | |
Core Deposit Intangibles | ||
Business Acquisition [Line Items] | ||
Intangible assets, Fair Value | 96.1 | |
Customer Relationships | ||
Business Acquisition [Line Items] | ||
Intangible assets, Fair Value | 3.5 | |
Trade Name | ||
Business Acquisition [Line Items] | ||
Intangible assets, Fair Value | $ 3 | |
MOB | ||
Business Acquisition [Line Items] | ||
Intangible assets, Fair Value | $ 102.6 | |
MOB | Core Deposit Intangibles | ||
Business Acquisition [Line Items] | ||
Intangible assets, Fair Value | $ 96.1 | |
Estimated useful life | 10 years | |
Intangible assets, Amortization Method | Straight line | |
MOB | Customer Relationships | ||
Business Acquisition [Line Items] | ||
Intangible assets, Fair Value | $ 3.5 | |
Estimated useful life | 7 years | |
Intangible assets, Amortization Method | Accelerated | |
MOB | Trade Name | ||
Business Acquisition [Line Items] | ||
Intangible assets, Fair Value | $ 3 | |
Estimated useful life | 7 years | |
Intangible assets, Amortization Method | Straight line |
Acquisition and Discontinued _8
Acquisition and Discontinued Operations (Summary of Other Assets Acquired) (Details) - MOB $ in Millions | Jan. 01, 2020USD ($) |
Business Acquisition [Line Items] | |
Right of use assets | $ 45.5 |
Property, furniture and fixtures | 27.4 |
Tax credit investments and investments in unconsolidated entities | 23.9 |
Fair value of derivative financial instruments | 19.9 |
Other | 82.8 |
Total other assets | $ 199.5 |
Acquisition and Discontinued _9
Acquisition and Discontinued Operations (Selected Unaudited Pro Forma Financial Information) (Details) - MOB - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | ||
Interest income | $ 1,799 | $ 2,345 |
Non-interest income | 1,351.4 | 1,293.4 |
Net (loss) income | $ (529.8) | $ 509.6 |
Acquisition and Discontinued_10
Acquisition and Discontinued Operations (Schedule of Condensed Combined Statements of Operations and Cash Flow of Discontinued Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
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 | $ (16.3) | |||
Total income (loss) from discontinued operations, net of taxes | $ 0.8 | $ (0.3) | $ 0.5 | (25) |
Discontinued Operations | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Interest income | 3.4 | 14.6 | ||
Interest expense | 2.8 | 10.5 | ||
Rental income on operating leases | 0.5 | |||
Other income | 3 | 19.9 | ||
Operating expenses | 2.9 | 35.7 | ||
Income (loss) from discontinued operations before provision (benefit) for income taxes | 0.7 | (11.2) | ||
Provision (benefit) for income taxes | 0.2 | (2.5) | ||
Income (loss) on sale of discontinued operation, net of taxes | (16.3) | |||
Total income (loss) from discontinued operations, net of taxes | 0.5 | (25) | ||
Net cash flows (used in) provided by operations | (4.4) | 7.2 | ||
Net cash flows provided by investing activities | $ 54.9 | $ 148.7 |
Loans (Schedule of Loans by Pro
Loans (Schedule of Loans by Product) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | $ 36,144.6 | $ 30,998.9 |
Commercial Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 29,728.9 | 25,019.5 |
Commercial Loans | Commercial loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 27,410.9 | 22,765.1 |
Commercial Loans | Financing leases and leverage leases | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 2,318 | 2,254.4 |
Consumer Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | $ 6,415.7 | $ 5,979.4 |
Loans (Schedule of Loans by Seg
Loans (Schedule of Loans by Segment, Based on Obligor Location) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 36,144.6 | $ 30,998.9 |
Domestic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 34,831.5 | 29,471.5 |
Foreign | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,313.1 | 1,527.4 |
Commercial Banking | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 28,636.5 | 24,393.4 |
Commercial Banking | Domestic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 27,323.4 | 22,866 |
Commercial Banking | Foreign | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,313.1 | 1,527.4 |
Consumer Banking | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 7,508.1 | 6,605.5 |
Consumer Banking | Domestic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 7,508.1 | $ 6,605.5 |
Loans (Components of Net Invest
Loans (Components of Net Investment in Loans) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Unearned income | $ (373.9) | $ (430) |
Unamortized (discounts) premium | (434.4) | 30 |
Accretable yield on PCI loans | (745.4) | |
Net unamortized deferred costs | $ 35.8 | $ 50.9 |
Loans (Commercial Loans - By Ri
Loans (Commercial Loans - By Risk Rating) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 36,144.6 | $ 30,998.9 |
PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 1,277.6 |
Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 28,636.5 | 24,393.4 |
Consumer Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 7,508.1 | 6,605.5 |
Commercial Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 8,405.5 | |
2019 | 6,904.7 | |
2018 | 4,847 | |
2017 | 2,302 | |
2016 | 1,196.3 | |
2015 & Prior | 1,913.5 | |
Revolving Loans | 4,089.6 | |
Revolving Loans Converted to Term Loans | 70.3 | |
Loans | 29,728.9 | 25,019.5 |
Commercial Loans | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 27.8 | |
Commercial Loans | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 8,082.3 | |
2019 | 5,751 | |
2018 | 4,126.4 | |
2017 | 1,703.2 | |
2016 | 820.8 | |
2015 & Prior | 1,378.2 | |
Revolving Loans | 3,372 | |
Revolving Loans Converted to Term Loans | 61.9 | |
Loans | 25,295.8 | 22,784.8 |
Commercial Loans | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 176.7 | |
2019 | 620.4 | |
2018 | 383.9 | |
2017 | 279.1 | |
2016 | 139.2 | |
2015 & Prior | 167.4 | |
Revolving Loans | 313.3 | |
Revolving Loans Converted to Term Loans | 2.8 | |
Loans | 2,082.8 | 1,027.2 |
Commercial Loans | Classified- accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 138 | |
2019 | 446.2 | |
2018 | 262.5 | |
2017 | 280.7 | |
2016 | 210.2 | |
2015 & Prior | 277.4 | |
Revolving Loans | 314.5 | |
Revolving Loans Converted to Term Loans | 5.6 | |
Loans | 1,935.1 | 871.5 |
Commercial Loans | Classified- non-accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 8.5 | |
2019 | 87.1 | |
2018 | 74.2 | |
2017 | 39 | |
2016 | 26.1 | |
2015 & Prior | 90.5 | |
Revolving Loans | 89.8 | |
Loans | 415.2 | 308.2 |
Commercial Loans | Real Estate Finance | Pass | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 20.7 | |
Commercial Loans | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 7,876.9 | |
2019 | 6,703.4 | |
2018 | 4,718.2 | |
2017 | 2,222.7 | |
2016 | 1,128.9 | |
2015 & Prior | 1,826.9 | |
Revolving Loans | 4,089.2 | |
Revolving Loans Converted to Term Loans | 70.3 | |
Loans | 28,636.5 | 24,393.4 |
Commercial Loans | Commercial Banking | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 27.8 | |
Commercial Loans | Commercial Banking | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 7,574.7 | |
2019 | 5,593.9 | |
2018 | 4,021.9 | |
2017 | 1,640.9 | |
2016 | 770.8 | |
2015 & Prior | 1,310.9 | |
Revolving Loans | 3,371.9 | |
Revolving Loans Converted to Term Loans | 61.9 | |
Loans | 24,346.9 | 22,195.2 |
Commercial Loans | Commercial Banking | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 176.7 | |
2019 | 607.3 | |
2018 | 379.6 | |
2017 | 276.3 | |
2016 | 136.6 | |
2015 & Prior | 166.5 | |
Revolving Loans | 313.3 | |
Revolving Loans Converted to Term Loans | 2.8 | |
Loans | 2,059.1 | 1,024.8 |
Commercial Loans | Commercial Banking | Classified- accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 117 | |
2019 | 426.9 | |
2018 | 245.5 | |
2017 | 269.7 | |
2016 | 196.4 | |
2015 & Prior | 259.8 | |
Revolving Loans | 314.2 | |
Revolving Loans Converted to Term Loans | 5.6 | |
Loans | 1,835.1 | 837.6 |
Commercial Loans | Commercial Banking | Classified- non-accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 8.5 | |
2019 | 75.3 | |
2018 | 71.2 | |
2017 | 35.8 | |
2016 | 25.1 | |
2015 & Prior | 89.7 | |
Revolving Loans | 89.8 | |
Loans | 395.4 | 308 |
Commercial Loans | Commercial Banking | Commercial Finance | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 4,984 | |
2019 | 2,509.6 | |
2018 | 2,314.6 | |
2017 | 875.2 | |
2016 | 341.2 | |
2015 & Prior | 1,109.3 | |
Revolving Loans | 4,040.5 | |
Revolving Loans Converted to Term Loans | 69.5 | |
Loans | 16,243.9 | 13,912.8 |
Commercial Loans | Commercial Banking | Commercial Finance | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | |
Commercial Loans | Commercial Banking | Commercial Finance | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 4,819.9 | |
2019 | 2,132.5 | |
2018 | 2,000.1 | |
2017 | 678 | |
2016 | 181.1 | |
2015 & Prior | 745.6 | |
Revolving Loans | 3,329.4 | |
Revolving Loans Converted to Term Loans | 61.1 | |
Loans | 13,947.7 | 12,601.1 |
Commercial Loans | Commercial Banking | Commercial Finance | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 81.2 | |
2019 | 206.4 | |
2018 | 210.8 | |
2017 | 18.4 | |
2016 | 30.8 | |
2015 & Prior | 119.9 | |
Revolving Loans | 313.3 | |
Revolving Loans Converted to Term Loans | 2.8 | |
Loans | 983.6 | 450.7 |
Commercial Loans | Commercial Banking | Commercial Finance | Classified- accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 82.4 | |
2019 | 161.7 | |
2018 | 49.8 | |
2017 | 169.2 | |
2016 | 107.2 | |
2015 & Prior | 183.1 | |
Revolving Loans | 314.2 | |
Revolving Loans Converted to Term Loans | 5.6 | |
Loans | 1,073.2 | 614.3 |
Commercial Loans | Commercial Banking | Commercial Finance | Classified- non-accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 0.5 | |
2019 | 9 | |
2018 | 53.9 | |
2017 | 9.6 | |
2016 | 22.1 | |
2015 & Prior | 60.7 | |
Revolving Loans | 83.6 | |
Loans | 239.4 | 246.7 |
Commercial Loans | Commercial Banking | Real Estate Finance | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 1,142.1 | |
2019 | 2,640.6 | |
2018 | 1,463.1 | |
2017 | 978.9 | |
2016 | 652 | |
2015 & Prior | 643.1 | |
Revolving Loans | 34.3 | |
Loans | 7,554.1 | 5,382.5 |
Commercial Loans | Commercial Banking | Real Estate Finance | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 27.8 | |
Commercial Loans | Commercial Banking | Real Estate Finance | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 1,075.9 | |
2019 | 2,089.2 | |
2018 | 1,212.3 | |
2017 | 663.5 | |
2016 | 480.3 | |
2015 & Prior | 493 | |
Revolving Loans | 28.1 | |
Loans | 6,042.3 | 5,007 |
Commercial Loans | Commercial Banking | Real Estate Finance | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 65.9 | |
2019 | 333.7 | |
2018 | 126.4 | |
2017 | 225.5 | |
2016 | 93.5 | |
2015 & Prior | 46.3 | |
Loans | 891.3 | 341 |
Commercial Loans | Commercial Banking | Real Estate Finance | Classified- accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 0.3 | |
2019 | 184.4 | |
2018 | 124.2 | |
2017 | 74.6 | |
2016 | 78 | |
2015 & Prior | 75.8 | |
Loans | 537.3 | 6.3 |
Commercial Loans | Commercial Banking | Real Estate Finance | Classified- non-accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2019 | 33.3 | |
2018 | 0.2 | |
2017 | 15.3 | |
2016 | 0.2 | |
2015 & Prior | 28 | |
Revolving Loans | 6.2 | |
Loans | 83.2 | 0.4 |
Commercial Loans | Commercial Banking | Business Capital | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 1,750.8 | |
2019 | 1,552.4 | |
2018 | 940.5 | |
2017 | 368.5 | |
2016 | 132.6 | |
2015 & Prior | 17.8 | |
Revolving Loans | 14.4 | |
Revolving Loans Converted to Term Loans | 0.8 | |
Loans | 4,777.8 | 5,038.5 |
Commercial Loans | Commercial Banking | Business Capital | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | |
Commercial Loans | Commercial Banking | Business Capital | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 1,678.9 | |
2019 | 1,371.4 | |
2018 | 809.5 | |
2017 | 299.3 | |
2016 | 106.3 | |
2015 & Prior | 15.6 | |
Revolving Loans | 14.4 | |
Revolving Loans Converted to Term Loans | 0.8 | |
Loans | 4,296.2 | 4,527.5 |
Commercial Loans | Commercial Banking | Business Capital | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 29.6 | |
2019 | 67.2 | |
2018 | 42.4 | |
2017 | 32.4 | |
2016 | 12.3 | |
2015 & Prior | 0.3 | |
Loans | 184.2 | 233.1 |
Commercial Loans | Commercial Banking | Business Capital | Classified- accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 34.3 | |
2019 | 80.8 | |
2018 | 71.5 | |
2017 | 25.9 | |
2016 | 11.2 | |
2015 & Prior | 0.9 | |
Loans | 224.6 | 217 |
Commercial Loans | Commercial Banking | Business Capital | Classified- non-accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 8 | |
2019 | 33 | |
2018 | 17.1 | |
2017 | 10.9 | |
2016 | 2.8 | |
2015 & Prior | 1 | |
Loans | 72.8 | 60.9 |
Commercial Loans | Commercial Banking | Rail | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2019 | 0.8 | |
2017 | 0.1 | |
2016 | 3.1 | |
2015 & Prior | 56.7 | |
Loans | 60.7 | 59.6 |
Commercial Loans | Commercial Banking | Rail | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | |
Commercial Loans | Commercial Banking | Rail | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2019 | 0.8 | |
2017 | 0.1 | |
2016 | 3.1 | |
2015 & Prior | 56.7 | |
Loans | 60.7 | 59.6 |
Commercial Loans | Commercial Banking | Rail | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | |
Commercial Loans | Commercial Banking | Rail | Classified- accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | |
Commercial Loans | Commercial Banking | Rail | Classified- non-accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | |
Commercial Loans | Consumer Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 626.1 | |
Commercial Loans | Consumer Banking | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | |
Commercial Loans | Consumer Banking | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 589.6 | |
Commercial Loans | Consumer Banking | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2.4 | |
Commercial Loans | Consumer Banking | Classified- accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 33.9 | |
Commercial Loans | Consumer Banking | Classified- non-accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0.2 | |
Commercial Loans | Consumer Banking | Consumer and Community Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 528.6 | |
2019 | 201.3 | |
2018 | 128.8 | |
2017 | 79.3 | |
2016 | 67.4 | |
2015 & Prior | 86.6 | |
Revolving Loans | 0.4 | |
Loans | 1,092.4 | 626.1 |
Commercial Loans | Consumer Banking | Consumer and Community Banking | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | |
Commercial Loans | Consumer Banking | Consumer and Community Banking | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 507.6 | |
2019 | 157.1 | |
2018 | 104.5 | |
2017 | 62.3 | |
2016 | 50 | |
2015 & Prior | 67.3 | |
Revolving Loans | 0.1 | |
Loans | 948.9 | 589.6 |
Commercial Loans | Consumer Banking | Consumer and Community Banking | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2019 | 13.1 | |
2018 | 4.3 | |
2017 | 2.8 | |
2016 | 2.6 | |
2015 & Prior | 0.9 | |
Loans | 23.7 | 2.4 |
Commercial Loans | Consumer Banking | Consumer and Community Banking | Classified- accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 21 | |
2019 | 19.3 | |
2018 | 17 | |
2017 | 11 | |
2016 | 13.8 | |
2015 & Prior | 17.6 | |
Revolving Loans | 0.3 | |
Loans | 100 | 33.9 |
Commercial Loans | Consumer Banking | Consumer and Community Banking | Classified- non-accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2019 | 11.8 | |
2018 | 3 | |
2017 | 3.2 | |
2016 | 1 | |
2015 & Prior | 0.8 | |
Loans | $ 19.8 | $ 0.2 |
Loans (Commercial Loans - By _2
Loans (Commercial Loans - By Risk Rating) (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 36,144.6 | $ 30,998.9 |
PCI Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 1,277.6 |
Commercial Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 29,728.9 | 25,019.5 |
Commercial Loans | PCI Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 27.8 | |
Commercial Loans | Non-Criticized Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 25,295.8 | 22,784.8 |
Commercial Loans | Non-Criticized Loans | PCI Loans | Real Estate Finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 20.7 | |
Commercial Loans | Criticized Loans | PCI Loans | Real Estate Finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 7.1 | |
Commercial Loans | Other Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest receivable | 48.6 | |
Commercial Loans | Other Assets | COVID-19 Pandemic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest receivable | $ 6.1 |
Loans (Narrative) (Details)
Loans (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)Score | Dec. 31, 2019USD ($)Score | Dec. 31, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Loans to Value Percentage | 58.00% | 63.00% | |
Loans | $ 36,144,600,000 | $ 30,998,900,000 | |
Average FICO score | Score | 755 | 751 | |
Period past due when loans go into non accrual status | 90 days | ||
Interest on non-accrual loan | $ 2,200,000 | ||
Trial modification, amount | 4,500,000 | $ 5,500,000 | $ 4,200,000 |
Commitments to lend additional funds to borrowers whose loan terms have been modified in TDRs | $ 28,300,000 | $ 23,600,000 | |
Troubled debt restructuring, payment deferral rate (percentage) | 40.00% | 52.00% | |
Troubled debt restructuring, covenant relief rate, other (percentage) | 60.00% | 48.00% | |
Consumer Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 6,415,700,000 | $ 5,979,400,000 | |
Loans with terms that permitted negative amortization, unpaid principal balance | 0 | 0 | |
Covered Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 0 | ||
Covered Loans | Consumer Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 307,800,000 | ||
COVID-19 Pandemic | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Loans to Value Percentage | 62.00% | ||
Average FICO score | Score | 695 |
Loans (Schedule of Consumer Loa
Loans (Schedule of Consumer Loans LTV Distributions) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 36,144,600,000 | $ 30,998,900,000 |
PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 1,277,600,000 |
Covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | |
Consumer Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 1,363,700,000 | |
2019 | 1,074,500,000 | |
2018 | 466,200,000 | |
2017 | 576,200,000 | |
2016 | 390,800,000 | |
2015 & Prior | 2,454,800,000 | |
Revolving Loans | 48,200,000 | |
Revolving Loans Converted to Term Loans | 41,300,000 | |
Loans | 6,415,700,000 | 5,979,400,000 |
Consumer Loans | Covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 307,800,000 | |
Consumer Loans | Covered Loans | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 293,700,000 | |
Consumer Loans | Non-covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,421,800,000 | |
Consumer Loans | Non-covered Loans | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 956,100,000 | |
Consumer Loans | LTV Greater Than 125 Percent | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 61,200,000 | |
Consumer Loans | LTV Greater Than 125 Percent | Covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | |
Consumer Loans | LTV Greater Than 125 Percent | Covered Loans | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,800,000 | |
Consumer Loans | LTV Greater Than 125 Percent | Non-covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5,200,000 | |
Consumer Loans | LTV Greater Than 125 Percent | Non-covered Loans | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 53,200,000 | |
Consumer Loans | LTV 101% – 125% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 108,100,000 | |
Consumer Loans | LTV 101% – 125% | Covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | |
Consumer Loans | LTV 101% – 125% | Covered Loans | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 8,500,000 | |
Consumer Loans | LTV 101% – 125% | Non-covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 6,600,000 | |
Consumer Loans | LTV 101% – 125% | Non-covered Loans | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 93,000,000 | |
Consumer Loans | LTV 80% – 100% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 471,100,000 | |
Consumer Loans | LTV 80% – 100% | Covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 300,000 | |
Consumer Loans | LTV 80% – 100% | Covered Loans | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 48,100,000 | |
Consumer Loans | LTV 80% – 100% | Non-covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 183,400,000 | |
Consumer Loans | LTV 80% – 100% | Non-covered Loans | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 239,300,000 | |
Consumer Loans | LTV Less than 80% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5,337,900,000 | |
Consumer Loans | LTV Less than 80% | Covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 307,500,000 | |
Consumer Loans | LTV Less than 80% | Covered Loans | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 234,300,000 | |
Consumer Loans | LTV Less than 80% | Non-covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,225,500,000 | |
Consumer Loans | LTV Less than 80% | Non-covered Loans | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 570,600,000 | |
Consumer Loans | Loan To Value Not Available | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,100,000 | |
Consumer Loans | Loan To Value Not Available | Covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | |
Consumer Loans | Loan To Value Not Available | Covered Loans | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | |
Consumer Loans | Loan To Value Not Available | Non-covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,100,000 | |
Consumer Loans | Loan To Value Not Available | Non-covered Loans | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 0 | |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2015 & Prior | 1,652,400,000 | |
Revolving Loans Converted to Term Loans | 41,300,000 | |
Loans | 1,693,700,000 | |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | Junior Lien Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2015 & Prior | 100,000 | |
Revolving Loans Converted to Term Loans | 1,700,000 | |
Loans | 1,800,000 | |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | Loans Insured or Guaranteed by US Government Authorities | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2015 & Prior | 20,800,000 | |
Loans | 20,800,000 | |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | LTV Greater Than 125 Percent | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2015 & Prior | 37,500,000 | |
Revolving Loans Converted to Term Loans | 400,000 | |
Loans | 37,900,000 | |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | LTV 101% – 125% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2015 & Prior | 60,500,000 | |
Revolving Loans Converted to Term Loans | 1,100,000 | |
Loans | 61,600,000 | |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | LTV 80% – 100% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2015 & Prior | 189,200,000 | |
Revolving Loans Converted to Term Loans | 3,400,000 | |
Loans | 192,600,000 | |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | LTV Less than 80% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2015 & Prior | 1,344,300,000 | |
Revolving Loans Converted to Term Loans | 34,700,000 | |
Loans | 1,379,000,000 | |
Consumer Loans | Consumer Banking | Consumer and Community Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 1,363,700,000 | |
2019 | 1,074,500,000 | |
2018 | 466,200,000 | |
2017 | 576,200,000 | |
2016 | 390,800,000 | |
2015 & Prior | 802,400,000 | |
Revolving Loans | 48,200,000 | |
Loans | 4,722,000,000 | |
Consumer Loans | Consumer Banking | Consumer and Community Banking | Junior Lien Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2018 | 200,000 | |
2017 | 200,000 | |
2016 | 200,000 | |
2015 & Prior | 700,000 | |
Revolving Loans | 1,300,000 | |
Loans | 2,600,000 | |
Consumer Loans | Consumer Banking | Consumer and Community Banking | Loans Insured or Guaranteed by US Government Authorities | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 12,000,000 | |
2019 | 33,700,000 | |
2018 | 15,700,000 | |
2017 | 68,200,000 | |
2016 | 9,500,000 | |
2015 & Prior | 7,800,000 | |
Loans | 146,900,000 | |
Consumer Loans | Consumer Banking | Consumer and Community Banking | LTV 80% – 100% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 21,300,000 | |
2019 | 17,100,000 | |
2018 | 3,500,000 | |
2015 & Prior | 1,700,000 | |
Revolving Loans | 2,400,000 | |
Loans | 46,000,000 | |
Consumer Loans | Consumer Banking | Consumer and Community Banking | LTV Less than 80% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 1,328,400,000 | |
2019 | 1,022,700,000 | |
2018 | 445,800,000 | |
2017 | 507,200,000 | |
2016 | 380,100,000 | |
2015 & Prior | 778,800,000 | |
Revolving Loans | 41,500,000 | |
Loans | 4,504,500,000 | |
Consumer Loans | Consumer Banking | Consumer and Community Banking | No LTV required | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 2,000,000 | |
2019 | 1,000,000 | |
2018 | 1,000,000 | |
2017 | 600,000 | |
2016 | 1,000,000 | |
2015 & Prior | 13,400,000 | |
Revolving Loans | 3,000,000 | |
Loans | $ 22,000,000 |
Loans (Schedule of Consumer L_2
Loans (Schedule of Consumer Loans LTV Distributions) (Parenthetical) (Details) - Other Assets - Consumer Loans $ in Millions | Dec. 31, 2020USD ($) |
Financing Receivable, Recorded Investment [Line Items] | |
Accrued interest receivable | $ 19 |
COVID-19 Pandemic | |
Financing Receivable, Recorded Investment [Line Items] | |
Accrued interest receivable | $ 1.1 |
Loans (Schedule of Consumer L_3
Loans (Schedule of Consumer Loans Current FICO Score Distributions) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 36,144,600,000 | $ 30,998,900,000 |
PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 1,277,600,000 |
Covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | |
Consumer Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 7,508,100,000 | 6,605,500,000 |
Consumer Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 1,363,700,000 | |
2019 | 1,074,500,000 | |
2018 | 466,200,000 | |
2017 | 576,200,000 | |
2016 | 390,800,000 | |
2015 & Prior | 2,454,800,000 | |
Revolving Loans | 48,200,000 | |
Revolving Loans Converted to Term Loans | 41,300,000 | |
Loans | 6,415,700,000 | 5,979,400,000 |
Consumer Loans | Covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 307,800,000 | |
Consumer Loans | Covered Loans | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 293,700,000 | |
Consumer Loans | Non-covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,421,800,000 | |
Consumer Loans | Non-covered Loans | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 956,100,000 | |
Consumer Loans | Consumer Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5,979,400,000 | |
Consumer Loans | Consumer Banking | Covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 307,800,000 | |
Consumer Loans | Consumer Banking | Covered Loans | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 293,700,000 | |
Consumer Loans | Consumer Banking | Non-covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,421,800,000 | |
Consumer Loans | Consumer Banking | Non-covered Loans | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 956,100,000 | |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2015 & Prior | 1,652,400,000 | |
Revolving Loans Converted to Term Loans | 41,300,000 | |
Loans | 1,693,700,000 | 2,081,500,000 |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | Covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 307,800,000 | |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | Covered Loans | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 293,700,000 | |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | Non-covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 523,900,000 | |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | Non-covered Loans | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 956,100,000 | |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | Loans Insured or Guaranteed by US Government Authorities | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2015 & Prior | 20,800,000 | |
Loans | 20,800,000 | 24,500,000 |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | Loans Insured or Guaranteed by US Government Authorities | Non-covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 24,500,000 | |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | Greater than or Equal to 730 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2015 & Prior | 729,100,000 | |
Revolving Loans Converted to Term Loans | 17,900,000 | |
Loans | 747,000,000 | 873,300,000 |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | Greater than or Equal to 730 | Covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 202,200,000 | |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | Greater than or Equal to 730 | Covered Loans | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 98,600,000 | |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | Greater than or Equal to 730 | Non-covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 320,000,000 | |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | Greater than or Equal to 730 | Non-covered Loans | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 252,500,000 | |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | Greater than or Equal to 660 and Less than 730 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2015 & Prior | 499,300,000 | |
Revolving Loans Converted to Term Loans | 13,000,000 | |
Loans | 512,300,000 | 618,000,000 |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | Greater than or Equal to 660 and Less than 730 | Covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 71,300,000 | |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | Greater than or Equal to 660 and Less than 730 | Covered Loans | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 98,800,000 | |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | Greater than or Equal to 660 and Less than 730 | Non-covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 123,200,000 | |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | Greater than or Equal to 660 and Less than 730 | Non-covered Loans | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 324,700,000 | |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | Less than 660 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2015 & Prior | 369,400,000 | |
Revolving Loans Converted to Term Loans | 9,400,000 | |
Loans | 378,800,000 | 528,100,000 |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | Less than 660 | Covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 16,800,000 | |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | Less than 660 | Covered Loans | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 89,800,000 | |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | Less than 660 | Non-covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 51,000,000 | |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | Less than 660 | Non-covered Loans | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 370,500,000 | |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | No FICO Score Available | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2015 & Prior | 33,800,000 | |
Revolving Loans Converted to Term Loans | 1,000,000 | |
Loans | 34,800,000 | 37,600,000 |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | No FICO Score Available | Covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 17,500,000 | |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | No FICO Score Available | Covered Loans | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 6,500,000 | |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | No FICO Score Available | Non-covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5,200,000 | |
Consumer Loans | Consumer Banking | Legacy Consumer Mortgages | No FICO Score Available | Non-covered Loans | PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 8,400,000 | |
Consumer Loans | Consumer Banking | Consumer and Community Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 1,363,700,000 | |
2019 | 1,074,500,000 | |
2018 | 466,200,000 | |
2017 | 576,200,000 | |
2016 | 390,800,000 | |
2015 & Prior | 802,400,000 | |
Revolving Loans | 48,200,000 | |
Loans | 4,722,000,000 | 3,897,900,000 |
Consumer Loans | Consumer Banking | Consumer and Community Banking | Non-covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,897,900,000 | |
Consumer Loans | Consumer Banking | Consumer and Community Banking | Loans Insured or Guaranteed by US Government Authorities | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 12,000,000 | |
2019 | 33,700,000 | |
2018 | 15,700,000 | |
2017 | 68,200,000 | |
2016 | 9,500,000 | |
2015 & Prior | 7,800,000 | |
Loans | 146,900,000 | 193,800,000 |
Consumer Loans | Consumer Banking | Consumer and Community Banking | Loans Insured or Guaranteed by US Government Authorities | Non-covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 193,800,000 | |
Consumer Loans | Consumer Banking | Consumer and Community Banking | Greater than or Equal to 730 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 1,152,300,000 | |
2019 | 923,700,000 | |
2018 | 372,300,000 | |
2017 | 453,500,000 | |
2016 | 339,700,000 | |
2015 & Prior | 596,700,000 | |
Revolving Loans | 34,200,000 | |
Loans | 3,872,400,000 | 3,319,000,000 |
Consumer Loans | Consumer Banking | Consumer and Community Banking | Greater than or Equal to 730 | Non-covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,319,000,000 | |
Consumer Loans | Consumer Banking | Consumer and Community Banking | Greater than or Equal to 660 and Less than 730 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 186,300,000 | |
2019 | 104,700,000 | |
2018 | 68,700,000 | |
2017 | 46,300,000 | |
2016 | 34,500,000 | |
2015 & Prior | 125,600,000 | |
Revolving Loans | 10,000,000 | |
Loans | 576,100,000 | 332,600,000 |
Consumer Loans | Consumer Banking | Consumer and Community Banking | Greater than or Equal to 660 and Less than 730 | Non-covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 332,600,000 | |
Consumer Loans | Consumer Banking | Consumer and Community Banking | Less than 660 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 11,000,000 | |
2019 | 11,200,000 | |
2018 | 8,400,000 | |
2017 | 7,300,000 | |
2016 | 5,500,000 | |
2015 & Prior | 40,800,000 | |
Revolving Loans | 3,100,000 | |
Loans | 87,300,000 | 29,600,000 |
Consumer Loans | Consumer Banking | Consumer and Community Banking | Less than 660 | Non-covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 29,600,000 | |
Consumer Loans | Consumer Banking | Consumer and Community Banking | No FICO Score Available | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 100,000 | |
2019 | 500,000 | |
2018 | 100,000 | |
2017 | 300,000 | |
2016 | 600,000 | |
2015 & Prior | 18,200,000 | |
Revolving Loans | 200,000 | |
Loans | 20,000,000 | 21,800,000 |
Consumer Loans | Consumer Banking | Consumer and Community Banking | No FICO Score Available | Non-covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 21,800,000 | |
Consumer Loans | Consumer Banking | Consumer and Community Banking | FICO Score Not Required | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 2,000,000 | |
2019 | 700,000 | |
2018 | 1,000,000 | |
2017 | 600,000 | |
2016 | 1,000,000 | |
2015 & Prior | 13,300,000 | |
Revolving Loans | 700,000 | |
Loans | $ 19,300,000 | 1,100,000 |
Consumer Loans | Consumer Banking | Consumer and Community Banking | FICO Score Not Required | Non-covered Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 1,100,000 |
Loans (Schedule of Consumer L_4
Loans (Schedule of Consumer Loans Current FICO Score Distributions) (Parenthetical) (Details) - Consumer Loans - Other Assets $ in Millions | Dec. 31, 2020USD ($) |
Financing Receivable, Recorded Investment [Line Items] | |
Accrued interest receivable | $ 19 |
COVID-19 Pandemic | |
Financing Receivable, Recorded Investment [Line Items] | |
Accrued interest receivable | $ 1.1 |
Loans (Delinquency Status) (Det
Loans (Delinquency Status) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 923.5 | $ 417.3 |
Current | 35,221.1 | 29,304 |
Total loans | 36,144.6 | 30,998.9 |
30-59 Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 479.3 | 205 |
60-89 Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 109.5 | 116 |
90 or more Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 334.7 | 96.3 |
Commercial Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 547.5 | 353.5 |
Current | 28,089 | 24,012.1 |
Total loans | 28,636.5 | 24,393.4 |
Commercial Banking | Commercial Finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 184.7 | 135.5 |
Current | 16,059.2 | 13,777.3 |
Total loans | 16,243.9 | 13,912.8 |
Commercial Banking | Real Estate Finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 192.4 | 47.2 |
Current | 7,361.7 | 5,307.5 |
Total loans | 7,554.1 | 5,382.5 |
Commercial Banking | Business Capital | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 170.4 | 170.8 |
Current | 4,607.4 | 4,867.7 |
Total loans | 4,777.8 | 5,038.5 |
Commercial Banking | Rail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 60.7 | 59.6 |
Total loans | 60.7 | 59.6 |
Commercial Banking | 30-59 Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 245.2 | 173.1 |
Commercial Banking | 30-59 Past Due | Commercial Finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 59.9 | 58.7 |
Commercial Banking | 30-59 Past Due | Real Estate Finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 71.7 | 0.6 |
Commercial Banking | 30-59 Past Due | Business Capital | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 113.6 | 113.8 |
Commercial Banking | 30-59 Past Due | Rail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Banking | 60-89 Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 81.3 | 109.4 |
Commercial Banking | 60-89 Past Due | Commercial Finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2.8 | 27.8 |
Commercial Banking | 60-89 Past Due | Real Estate Finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 38.3 | 46.6 |
Commercial Banking | 60-89 Past Due | Business Capital | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 40.2 | 35 |
Commercial Banking | 60-89 Past Due | Rail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Banking | 90 or more Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 221 | 71 |
Commercial Banking | 90 or more Past Due | Commercial Finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 122 | 49 |
Commercial Banking | 90 or more Past Due | Real Estate Finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 82.4 | 0 |
Commercial Banking | 90 or more Past Due | Business Capital | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 16.6 | 22 |
Commercial Banking | 90 or more Past Due | Rail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 376 | 63.8 |
Current | 7,132.1 | 5,291.9 |
Total loans | 7,508.1 | 6,605.5 |
Consumer Banking | Legacy Consumer Mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 158.3 | 36.5 |
Current | 1,535.5 | 795.2 |
Total loans | 1,693.8 | 2,081.5 |
Consumer Banking | Consumer and Community Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 217.7 | 27.3 |
Current | 5,596.6 | 4,496.7 |
Total loans | 5,814.3 | 4,524 |
Consumer Banking | 30-59 Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 234.1 | 31.9 |
Consumer Banking | 30-59 Past Due | Legacy Consumer Mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 61 | 15.5 |
Consumer Banking | 30-59 Past Due | Consumer and Community Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 173.1 | 16.4 |
Consumer Banking | 60-89 Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 28.2 | 6.6 |
Consumer Banking | 60-89 Past Due | Legacy Consumer Mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 17.6 | 3.3 |
Consumer Banking | 60-89 Past Due | Consumer and Community Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 10.6 | 3.3 |
Consumer Banking | 90 or more Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 113.7 | 25.3 |
Consumer Banking | 90 or more Past Due | Legacy Consumer Mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 79.7 | 17.7 |
Consumer Banking | 90 or more Past Due | Consumer and Community Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 34 | 7.6 |
PCI Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 0 | 1,277.6 |
PCI Loans | Commercial Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 0 | 27.8 |
PCI Loans | Commercial Banking | Commercial Finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 0 | 0 |
PCI Loans | Commercial Banking | Real Estate Finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 0 | 27.8 |
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 | 0 | 1,249.8 |
PCI Loans | Consumer Banking | Legacy Consumer Mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 0 | 1,249.8 |
PCI Loans | Consumer Banking | Consumer and Community Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | $ 0 | $ 0 |
Loans (Loans - Delinquency Stat
Loans (Loans - Delinquency Status) (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 35,221.1 | $ 29,304 |
Total past due | 923.5 | 417.3 |
COVID-19 Pandemic | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 459 | |
30-59 Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 479.3 | 205 |
30-59 Past Due | COVID-19 Pandemic | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 49 | |
60-89 Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 109.5 | 116 |
60-89 Past Due | COVID-19 Pandemic | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 3 | |
90 or more Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 334.7 | 96.3 |
90 or more Past Due | COVID-19 Pandemic | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 26 | |
Commercial Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 28,089 | 24,012.1 |
Total past due | 547.5 | 353.5 |
Commercial Banking | COVID-19 Pandemic | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 347 | |
Commercial Banking | 30-59 Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 245.2 | 173.1 |
Commercial Banking | 60-89 Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 81.3 | 109.4 |
Commercial Banking | 90 or more Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 221 | $ 71 |
Consumer Loans | COVID-19 Pandemic | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 112 |
Loans (Loans on Non-accrual Sta
Loans (Loans on Non-accrual Status) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | |||
Total non-accrual loans | $ 588.1 | $ 476.8 | $ 326.3 |
Repossessed assets and OREO | 7.9 | 20.1 | |
Total non-performing assets | 596 | 346.4 | |
Total accruing loans past due 90 days or more | 103.8 | 36.9 | |
Total non-accrual, With No Allowance Recorded | 93.7 | ||
CECL Adoption | |||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | |||
Total non-accrual loans | 82.2 | ||
Commercial Loans | |||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | |||
Total non-accrual loans | 395.4 | 369.7 | 308 |
Total accruing loans past due 90 days or more | 92.5 | 25.6 | |
Total non-accrual, With No Allowance Recorded | 25.5 | ||
Commercial Loans | Commercial Finance | |||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | |||
Total non-accrual loans | 239.4 | 307.8 | 246.7 |
Total non-accrual, With No Allowance Recorded | 8 | ||
Commercial Loans | Business Capital | |||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | |||
Total non-accrual loans | 72.8 | 60.9 | 60.9 |
Total non-accrual, With No Allowance Recorded | 1.5 | ||
Commercial Loans | Real Estate Finance | |||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | |||
Total non-accrual loans | 83.2 | 1 | 0.4 |
Total non-accrual, With No Allowance Recorded | 16 | ||
Commercial Loans | CECL Adoption | |||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | |||
Total non-accrual loans | 0.6 | ||
Commercial Loans | CECL Adoption | Real Estate Finance | |||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | |||
Total non-accrual loans | 0.6 | ||
Consumer Loans | |||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | |||
Total non-accrual loans | 192.7 | 107.1 | 18.3 |
Total accruing loans past due 90 days or more | 11.3 | 11.3 | |
Total non-accrual, With No Allowance Recorded | 68.2 | ||
Consumer Loans | Consumer and Community Banking | |||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | |||
Total non-accrual loans | 53.4 | 11.2 | 4 |
Total non-accrual, With No Allowance Recorded | 38.2 | ||
Consumer Loans | Legacy Consumer Mortgages | |||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | |||
Total non-accrual loans | 139.3 | 95.9 | $ 14.3 |
Total non-accrual, With No Allowance Recorded | $ 30 | ||
Consumer Loans | CECL Adoption | |||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | |||
Total non-accrual loans | 81.6 | ||
Consumer Loans | CECL Adoption | Legacy Consumer Mortgages | |||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | |||
Total non-accrual loans | 81.6 | ||
MOB | |||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | |||
Total non-accrual loans | 68.3 | ||
MOB | Commercial Loans | |||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | |||
Total non-accrual loans | 61.1 | ||
MOB | Commercial Loans | Commercial Finance | |||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | |||
Total non-accrual loans | 61.1 | ||
MOB | Consumer Loans | |||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | |||
Total non-accrual loans | 7.2 | ||
MOB | Consumer Loans | Consumer and Community Banking | |||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | |||
Total non-accrual loans | $ 7.2 |
Loans (Loans on Non-accrual S_2
Loans (Loans on Non-accrual Status) (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | |
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | |||
Accrued interest reversed to non-accrual status | $ 6.2 | ||
Non-accrual loans | 588.1 | $ 476.8 | $ 326.3 |
Total accruing loans past due 90 days or more | 103.8 | 36.9 | |
COVID-19 Pandemic | |||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | |||
Total accruing loans past due 90 days or more | 65 | ||
Consumer Loans | |||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | |||
Non-accrual loans | 192.7 | 107.1 | 18.3 |
Total accruing loans past due 90 days or more | 11.3 | 11.3 | |
Consumer Loans | Legacy Consumer Mortgages | |||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | |||
Non-accrual loans | 139.3 | $ 95.9 | $ 14.3 |
Consumer Loans | Legacy Consumer Mortgages | Purchased Credit Deteriorated Loans | |||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | |||
Non-accrual loans | $ 33 |
Loans (Schedule of Loans In Pro
Loans (Schedule of Loans In Process of Foreclosure (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Loans in process of foreclosure | $ 22.9 | $ 38.9 |
Loans (Schedule of Loans In P_2
Loans (Schedule of Loans In Process of Foreclosure) (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Loans In Process Of Foreclosure [Line Items] | ||
Loans in process of foreclosure | $ 22.9 | $ 38.9 |
PCI Loans | ||
Loans In Process Of Foreclosure [Line Items] | ||
Loans in process of foreclosure | $ 25.4 |
Loans (Impaired Loans) (Details
Loans (Impaired Loans) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Financing Receivable Impaired [Line Items] | |
Recorded investment, total | $ 1,598.3 |
Unpaid principal balance, total | 2,325.3 |
Related Allowance | 113.6 |
Average Recorded Investment, total | 1,789 |
PCI Loans | |
Financing Receivable Impaired [Line Items] | |
Recorded investment, total | 1,277.6 |
Unpaid principal balance, total | 1,936.1 |
Related Allowance | 17.4 |
Average Recorded Investment, total | 1,504.4 |
Impaired Loans | |
Financing Receivable Impaired [Line Items] | |
Recorded investment, total | 320.7 |
Unpaid principal balance, total | 389.2 |
Related Allowance | 96.2 |
Average Recorded Investment, total | 284.6 |
Commercial Loans | Commercial Finance | |
Financing Receivable Impaired [Line Items] | |
With no related allowance, Recorded Investment | 46.5 |
With related allowance, recorded investment | 223.9 |
With no related allowance, Unpaid Principal Balance | 69 |
With related allowance, unpaid principal balance | 267.3 |
Related Allowance | 86 |
With no related allowance, Average Recorded Investment | 68 |
With related allowance, average recorded investment | 166.6 |
Commercial Loans | Business Capital | |
Financing Receivable Impaired [Line Items] | |
With no related allowance, Recorded Investment | 4.8 |
With related allowance, recorded investment | 19.4 |
With no related allowance, Unpaid Principal Balance | 5.5 |
With related allowance, unpaid principal balance | 19.4 |
Related Allowance | 10 |
With no related allowance, Average Recorded Investment | 6 |
With related allowance, average recorded investment | 11.6 |
Commercial Loans | Real Estate Finance | |
Financing Receivable Impaired [Line Items] | |
With no related allowance, Average Recorded Investment | 1.6 |
With related allowance, average recorded investment | 0.8 |
Commercial Loans | Real Estate Finance | PCI Loans | |
Financing Receivable Impaired [Line Items] | |
Recorded investment, total | 27.8 |
Unpaid principal balance, total | 30.4 |
Related Allowance | 9.8 |
Consumer Loans | Consumer and Community Banking | |
Financing Receivable Impaired [Line Items] | |
With no related allowance, Recorded Investment | 4 |
With related allowance, recorded investment | 0.1 |
With no related allowance, Unpaid Principal Balance | 4 |
With related allowance, unpaid principal balance | 0.2 |
With no related allowance, Average Recorded Investment | 4.9 |
Consumer Loans | Legacy Consumer Mortgages | |
Financing Receivable Impaired [Line Items] | |
With no related allowance, Recorded Investment | 20.6 |
With related allowance, recorded investment | 1.4 |
Recorded investment, total | 1.4 |
With no related allowance, Unpaid Principal Balance | 22.4 |
With related allowance, unpaid principal balance | 1.4 |
Unpaid principal balance, total | 1.4 |
Related Allowance | 0.2 |
With no related allowance, Average Recorded Investment | 24.7 |
With related allowance, average recorded investment | 0.4 |
Average Recorded Investment, total | 0.4 |
Consumer Loans | Legacy Consumer Mortgages | PCI Loans | |
Financing Receivable Impaired [Line Items] | |
Recorded investment, total | 1,249.8 |
Unpaid principal balance, total | 1,905.7 |
Related Allowance | $ 7.6 |
Loans (Impaired Loans) (Parenth
Loans (Impaired Loans) (Parenthetical) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Receivables [Abstract] | |
Interest income recorded | $ 2.1 |
Loans (PCD Loans) (Details)
Loans (PCD Loans) (Details) - PCD Loans - USD ($) $ in Millions | Jan. 01, 2020 | Dec. 31, 2020 |
Financing Receivable Impaired [Line Items] | ||
Par value (UPB) | $ 406.2 | |
Allowance for credit losses | $ (58.8) | (58.8) |
(Discount) premium | (6.6) | |
Purchase price | 340.8 | |
Commercial Loans | ||
Financing Receivable Impaired [Line Items] | ||
Par value (UPB) | 347.8 | |
Allowance for credit losses | (56.1) | |
(Discount) premium | (9) | |
Purchase price | 282.7 | |
Consumer Loans | ||
Financing Receivable Impaired [Line Items] | ||
Par value (UPB) | 58.4 | |
Allowance for credit losses | (2.7) | |
(Discount) premium | 2.4 | |
Purchase price | $ 58.1 |
Loans (PCD Loans) (Parenthetica
Loans (PCD Loans) (Parenthetical) (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable Impaired [Line Items] | |||
Loans charged-off | $ 495.1 | $ 153.9 | |
Net impact of additional PCD reserves | 20.2 | ||
PCD Loans | |||
Financing Receivable Impaired [Line Items] | |||
Initial ACL recognized on PCD assets | $ 58.8 | 58.8 | |
Loans charged-off | 38.6 | ||
Net impact of additional PCD reserves | $ 20.2 | $ 20.2 |
Loans (PCI Loans) (Details)
Loans (PCI Loans) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Financing Receivable Impaired [Line Items] | |
Carrying Value | $ 1,598.3 |
Unpaid Principal Balance | 2,325.3 |
Allowance for Loan Losses | 113.6 |
PCI Loans | |
Financing Receivable Impaired [Line Items] | |
Carrying Value | 1,277.6 |
Unpaid Principal Balance | 1,936.1 |
Allowance for Loan Losses | 17.4 |
Commercial Loans | Real Estate Finance | PCI Loans | |
Financing Receivable Impaired [Line Items] | |
Carrying Value | 27.8 |
Unpaid Principal Balance | 30.4 |
Allowance for Loan Losses | 9.8 |
Consumer Loans | Legacy Consumer Mortgages | |
Financing Receivable Impaired [Line Items] | |
Carrying Value | 1.4 |
Unpaid Principal Balance | 1.4 |
Allowance for Loan Losses | 0.2 |
Consumer Loans | Legacy Consumer Mortgages | PCI Loans | |
Financing Receivable Impaired [Line Items] | |
Carrying Value | 1,249.8 |
Unpaid Principal Balance | 1,905.7 |
Allowance for Loan Losses | $ 7.6 |
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 | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Balance, beginning of period | $ 903.8 | $ 1,063.7 |
Accretion into interest income | (146.9) | (167.5) |
Reclassification from non-accretable difference | 19.2 | 17.8 |
Disposals and Other | (30.7) | (10.2) |
Balance, end of period | $ 745.4 | $ 903.8 |
Loans (Summary of Recorded Inve
Loans (Summary of Recorded Investments of TDRs (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Recorded Investment | $ 134.4 | $ 148.8 | $ 87.6 |
% Total TDR | 100.00% | 100.00% | 100.00% |
Percent non-accrual | 73.00% | 71.00% | 79.00% |
Commercial Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Recorded Investment | $ 109.8 | $ 129.5 | $ 70.4 |
% Total TDR | 82.00% | 87.00% | 80.00% |
Consumer Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Recorded Investment | $ 24.6 | $ 19.3 | $ 17.2 |
% Total TDR | 18.00% | 13.00% | 20.00% |
Loans (Summary of Recorded In_2
Loans (Summary of Recorded Investments of Modifications) (Details) - Commercial Loan - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Recorded investment related to modifications qualifying as TDRs that occurred during the years | $ 88.4 | $ 89.9 | $ 69 |
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 | $ 24 | $ 23.2 | $ 21.8 |
Allowance For Credit Losses (Sc
Allowance For Credit Losses (Schedule of Allowance for Credit Losses and Recorded Investment in Finance Receivables) (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning balance | $ 482.6 | $ 482.6 | $ 489.7 | |||
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201613Member | |||||
Provision (benefit) for credit losses | $ 800.3 | 110.8 | $ 171 | |||
The initial ACL recognized on PCD assets | 20.2 | |||||
Other | (35.9) | 4.4 | ||||
Gross charge-offs | (495.1) | (153.9) | ||||
Recoveries | 68.1 | 31.6 | ||||
Allowance balance - end of period | 1,063.8 | 482.6 | 489.7 | |||
Allowance balance | ||||||
Loans individually evaluated for impairment | $ 106.3 | $ 96.2 | ||||
Loans collectively evaluated for impairment | 957.5 | 369 | ||||
Allowance for credit losses | 482.6 | 1,063.8 | 489.7 | $ 489.7 | 1,063.8 | 482.6 |
Allowance for off-balance sheet credit exposures | 78.3 | 37.1 | ||||
Loans receivables | ||||||
Loans individually evaluated for impairment | 432.7 | 320.7 | ||||
Loans collectively evaluated for impairment | 35,711.9 | 29,400.6 | ||||
Loans | $ 36,144.6 | $ 30,998.9 | ||||
Percent of loans to total loans | 100.00% | 100.00% | ||||
PCI Loans | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
The initial ACL recognized on PCD assets | 20.2 | 20.2 | ||||
Gross charge-offs | (38.6) | |||||
Loans receivables | ||||||
Loans | $ 0 | $ 1,277.6 | ||||
PCI Loans | OneWest Bank | ||||||
Allowance balance | ||||||
Allowance | 17.4 | |||||
Loans receivables | ||||||
Loans | 1,277.6 | |||||
Cumulative Effect of Adoption | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning balance | 223.6 | $ 223.6 | ||||
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201613Member | cit:AccountingStandardsUpdate201601201616And201802Member | ||||
Allowance balance - end of period | 223.6 | |||||
Allowance balance | ||||||
Allowance for credit losses | 223.6 | $ 223.6 | 223.6 | 223.6 | ||
Commercial Banking | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning balance | 460.4 | $ 460.4 | 460.2 | |||
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201613Member | |||||
Provision (benefit) for credit losses | $ 834.2 | 117.3 | ||||
The initial ACL recognized on PCD assets | 18.8 | |||||
Other | (32.1) | 5 | ||||
Gross charge-offs | (488) | (151.2) | ||||
Recoveries | 65.7 | 29.1 | ||||
Allowance balance - end of period | 933.7 | 460.4 | $ 460.2 | |||
Allowance balance | ||||||
Loans individually evaluated for impairment | 100.8 | 96 | ||||
Loans collectively evaluated for impairment | 832.9 | 354.6 | ||||
Allowance for credit losses | 460.4 | 933.7 | 460.2 | 460.2 | 933.7 | 460.4 |
Allowance for off-balance sheet credit exposures | 76.8 | 36.4 | ||||
Loans receivables | ||||||
Loans individually evaluated for impairment | 346.3 | 294.6 | ||||
Loans collectively evaluated for impairment | 28,290.2 | 24,071 | ||||
Loans | $ 28,636.5 | $ 24,393.4 | ||||
Percent of loans to total loans | 79.20% | 78.70% | ||||
Commercial Banking | PCI Loans | OneWest Bank | ||||||
Allowance balance | ||||||
Allowance | $ 9.8 | |||||
Loans receivables | ||||||
Loans | 27.8 | |||||
Commercial Banking | Cumulative Effect of Adoption | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning balance | 74.7 | 74.7 | ||||
Allowance balance - end of period | 74.7 | |||||
Allowance balance | ||||||
Allowance for credit losses | 74.7 | 74.7 | 74.7 | 74.7 | ||
Consumer Banking | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning balance | 22.2 | $ 22.2 | 29.5 | |||
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201613Member | |||||
Provision (benefit) for credit losses | $ (33.9) | (6.5) | ||||
The initial ACL recognized on PCD assets | 1.4 | |||||
Other | (3.8) | (0.6) | ||||
Gross charge-offs | (7.1) | (2.7) | ||||
Recoveries | 2.4 | 2.5 | ||||
Allowance balance - end of period | 130.1 | 22.2 | 29.5 | |||
Allowance balance | ||||||
Loans individually evaluated for impairment | $ 5.5 | 0.2 | ||||
Loans collectively evaluated for impairment | 124.6 | 14.4 | ||||
Allowance for credit losses | 22.2 | 130.1 | 29.5 | $ 29.5 | 130.1 | 22.2 |
Allowance for off-balance sheet credit exposures | 1.5 | 0.7 | ||||
Loans receivables | ||||||
Loans individually evaluated for impairment | 86.4 | 26.1 | ||||
Loans collectively evaluated for impairment | 7,421.7 | 5,329.6 | ||||
Loans | $ 7,508.1 | $ 6,605.5 | ||||
Percent of loans to total loans | 20.80% | 21.30% | ||||
Consumer Banking | PCI Loans | OneWest Bank | ||||||
Allowance balance | ||||||
Allowance | $ 7.6 | |||||
Loans receivables | ||||||
Loans | 1,249.8 | |||||
Consumer Banking | Cumulative Effect of Adoption | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning balance | 148.9 | 148.9 | ||||
Allowance balance - end of period | 148.9 | |||||
Allowance balance | ||||||
Allowance for credit losses | $ 148.9 | $ 148.9 | $ 148.9 | $ 148.9 |
Allowance For Credit Losses (_2
Allowance For Credit Losses (Schedule of Allowance for Credit Losses and Recorded Investment in Finance Receivables) (Parenthetical) (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Provision for off-balance sheet credit exposures | $ 33.4 | $ (4.4) | |
Loans charged-off | 495.1 | $ 153.9 | |
Net impact of additional PCD reserves | 20.2 | ||
PCD Loans | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Initial ACL recognized on PCD assets | $ 58.8 | 58.8 | |
Loans charged-off | 38.6 | ||
Net impact of additional PCD reserves | $ 20.2 | $ 20.2 |
Allowance For Credit Losses (Na
Allowance For Credit Losses (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Credit Loss [Abstract] | |||
Provision for credit losses | $ 800.3 | $ 110.8 | $ 171 |
Allowance for credit losses | 1,063.8 | 482.6 | $ 489.7 |
Allowance for off-balance sheet, credit exposures | $ 78.3 | $ 37.1 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Line Items] | ||
Lessee, operating lease, option to extend | true | |
Lessee, operating lease, option to terminate | true | |
Lessee, future operating lease commitments, undiscounted | $ 309,000,000 | |
Lessee, operating lease, lease termination expense | 6,300,000 | $ 400,000 |
Operating lease, ROU asset impairment charges | 6,100,000 | 0 |
Accumulated depreciation | 1,600,000,000 | $ 1,400,000,000 |
Morristown, NJ | ||
Leases [Line Items] | ||
Lessee, future operating lease commitments, undiscounted | $ 103,000,000 | |
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 | 3 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, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Leases [Abstract] | |||
ROU assets | $ 198.8 | $ 194.9 | $ 210 |
Lease liabilities | $ 249.9 | $ 242.6 | $ 260 |
Weighted-average remaining lease terms | 9 years | 9 years | |
Weighted-average discount rate | 4.32% | 4.77% | |
Cash paid for amounts included in the measurement of lease liabilities | $ 56.3 | $ 45.8 | |
ROU assets obtained in exchange for new lease liabilities | $ 18.1 | $ 18 |
Leases (Maturities of Lease Lia
Leases (Maturities of Lease Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | |||
2021 | $ 44.6 | ||
2022 | 35.7 | ||
2023 | 33.9 | ||
2024 | 32.7 | ||
2025 | 30.4 | ||
Thereafter | 131.7 | ||
Total undiscounted lease payments | 309 | ||
Difference between undiscounted cash flows and discounted cash flows | (59.1) | ||
Lease liabilities, at present value | $ 249.9 | $ 242.6 | $ 260 |
Leases (Components of Operating
Leases (Components of Operating Lease Expense Included in Operating Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Leases [Abstract] | |||
Operating lease cost | [1] | $ 50.6 | $ 43.1 |
Variable lease cost | 19.6 | 10.6 | |
Sublease income | (11.3) | (14.9) | |
Total operating lease expense | $ 58.9 | $ 38.8 | |
[1] | Includes short-term lease cost which is not significant. |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Lessor Lease Description [Line Items] | |||||
Operating lease equipment, net | $ 7,836.6 | [1] | $ 7,319.7 | [1] | $ 6,970.6 |
Railcars and Locomotives | |||||
Lessor Lease Description [Line Items] | |||||
Operating lease equipment, net | 7,098.9 | 6,706 | |||
Other Equipment | |||||
Lessor Lease Description [Line Items] | |||||
Operating lease equipment, net | $ 737.7 | $ 613.7 | |||
[1] | Includes off-lease Rail equipment of $1,110.2 million and $519.1 million at December 31, 2020 and 2019, respectively. |
Leases (Schedule of Net Book _2
Leases (Schedule of Net Book Value of Operating Lease Equipment by Equipment Type) (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Off-lease rail equipment | $ 1,110.2 | $ 519.1 |
Leases (Components of Finance L
Leases (Components of Finance Lease Net Investment on Discounted Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Lease receivables | $ 1,986 | $ 1,905.3 | |
Unguaranteed residual assets | 287.4 | 309.4 | |
Total net investment in finance leases | 2,273.4 | 2,214.7 | |
Leveraged lease net investment | [1] | 44.6 | 39.7 |
Total | $ 2,318 | $ 2,254.4 | |
[1] | Leveraged leases are reported net of non-recourse debt of $41.8 million and $56.4 million at December 31, 2020 and 2019, respectively. Our leveraged lease arrangements commenced before the ASC 842 effective date and continue to be reported under the leveraged lease accounting model. ASC 842 eliminated leveraged lease accounting for new leases |
Leases (Components of Finance_2
Leases (Components of Finance Lease Net Investment on Discounted Basis) (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Leverage leases, net of non-recourse debt | $ 41.8 | $ 56.4 |
Leases (Schedule of Lease Incom
Leases (Schedule of Lease Income Related to Company's Operating and Finance Leases) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Leases [Abstract] | |||
Lease income – Operating leases | $ 765.7 | $ 800.8 | |
Variable lease income – Operating leases | [1] | 45.2 | 56.9 |
Rental income on operating leases | 810.9 | 857.7 | |
Interest income - Sales type and direct financing leases | 170.6 | 194 | |
Variable lease income included in Other non-interest income | [2] | 42.8 | 46 |
Leveraged lease income | 11.4 | 8.8 | |
Total lease income | $ 1,035.7 | $ 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 $17.9 million and $22.2 million for the years ended December 31, 2020 and 2019, respectively, as well as revenue related to insurance coverage on Business Capital leased equipment of $24.9 million and $23.8 million for the years ended December 31, 2020 and 2019, respectively. |
Leases (Schedule of Lease Inc_2
Leases (Schedule of Lease Income Related to Company's Operating and Finance Leases) (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Leased equipment property tax reimbursements due from customers | $ 17.9 | $ 22.2 |
Revenue related to insurance coverage Commercial Finance leased equipment | $ 24.9 | $ 23.8 |
Leases (Maturity Analysis of Op
Leases (Maturity Analysis of Operating Lease Payments) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 615.5 |
2022 | 456.1 |
2023 | 299.9 |
2024 | 192 |
2025 | 99.4 |
Thereafter | 187.2 |
Total | $ 1,850.1 |
Leases (Maturity Analysis of Le
Leases (Maturity Analysis of Lease Receivable Payments - Sales Type and Direct Financing Leases) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 884.3 |
2022 | 611.1 |
2023 | 374 |
2024 | 184 |
2025 | 89 |
Thereafter | 33.9 |
Total undiscounted cash flows | 2,176.3 |
Difference between undiscounted cash flows and discounted cash flows | 190.3 |
Lease receivables, at present value | $ 1,986 |
Investment Securities (Schedule
Investment Securities (Schedule of Carrying Value of Investment Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Debt securities | $ 6,673.5 | $ 6,011.8 |
Equity securities | 0 | 47.2 |
Total investment securities | 6,889 | 6,276.8 |
Non-marketable securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Total investment securities | $ 215.5 | $ 217.8 |
Investment Securities (Schedu_2
Investment Securities (Schedule of Carrying Value of Investment Securities) (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Investments Debt And Equity Securities [Abstract] | ||
Restricted Stock of FRB and FHLB | $ 181.7 | $ 187.9 |
Non-marketable investments without readily determinable fair values | $ 33.8 | $ 29.9 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investment Holdings [Line Items] | ||||
Accrued interest receivables on debt securities | $ 13,700,000 | $ 21,500,000 | ||
Cash and interest bearing deposits | 3,837,100,000 | 1,695,500,000 | $ 1,596,800,000 | |
Accretable yield on PCI securities balance | 0 | 0 | $ 101,700,000 | |
Accretion into interest income | 7,800,000 | |||
Disposals | $ 93,000,000 | |||
Equity securities carried at fair value with changes recorded in net income, amortized cost | 400,000 | 48,200,000 | ||
Equity securities | 0 | 47,200,000 | ||
Equity securities carried at fair value with changes recorded in net income, unrealized losses | 400,000 | 1,000,000 | ||
Other than temporary impairment losses | 1,700,000 | 0 | ||
Pledged securities carrying value | $ 1,926,200,000 | $ 50,400,000 |
Investment Securities (Schedu_3
Investment Securities (Schedule of Interest and Dividend Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |||
Interest income - debt securities | $ 114.9 | $ 187.9 | $ 163.1 |
Interest income - interest-bearing cash | 11.1 | 37.1 | 42.3 |
Dividends - equity securities | 5.2 | 8.5 | 13.2 |
Total interest and dividends | $ 131.2 | $ 233.5 | $ 218.6 |
Investment Securities (Schedu_4
Investment Securities (Schedule of Realized Gains (Losses) and Proceeds from Sales of Debt Securities AFS) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |||
Proceeds from sales of debt securities AFS | $ 3,066.6 | $ 2,545.4 | $ 338.3 |
Gross realized gains | 38.1 | 6.2 | 23.1 |
Gross realized losses | (1.8) | (1.4) | (6.6) |
Net realized gains (losses) on sales of securities available-for-sale | $ 36.3 | $ 4.8 | $ 16.5 |
Investment Securities (Amortize
Investment Securities (Amortized Cost and Fair Value of AFS and HTM Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Debt securities, Amortized Cost | $ 6,550.5 | $ 5,998.2 |
Debt securities, Unrealized Gains Gross | 133.6 | 37.5 |
Debt securities, Unrealized Losses Gross | (10.6) | (23.9) |
Debt securities, Fair Value | 6,673.5 | 6,011.8 |
U.S. government/sponsored agency – Residential | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt securities, Amortized Cost | 2,503.4 | 4,766.4 |
Debt securities, Unrealized Gains Gross | 76.5 | 24.1 |
Debt securities, Unrealized Losses Gross | (0.1) | (16.7) |
Debt securities, Fair Value | 2,579.8 | 4,773.8 |
U.S. government/sponsored agency – Commercial | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt securities, Amortized Cost | 1,725 | 554.5 |
Debt securities, Unrealized Gains Gross | 56.3 | 12.1 |
Debt securities, Unrealized Losses Gross | (0.5) | (1.8) |
Debt securities, Fair Value | 1,780.8 | 564.8 |
U.S. government/sponsored agency obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt securities, Amortized Cost | 1,474.2 | 449.4 |
Debt securities, Unrealized Gains Gross | 0.5 | 0 |
Debt securities, Unrealized Losses Gross | (3.9) | (5.4) |
Debt securities, Fair Value | 1,470.8 | 444 |
U.S. Treasury securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt securities, Amortized Cost | 505.9 | 11.2 |
Debt securities, Unrealized Gains Gross | 0 | 0.1 |
Debt securities, Unrealized Losses Gross | (3.2) | 0 |
Debt securities, Fair Value | 502.7 | 11.3 |
Supranational Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt securities, Amortized Cost | 330.2 | 149.8 |
Debt securities, Unrealized Gains Gross | 0.2 | 0 |
Debt securities, Unrealized Losses Gross | (2.9) | 0 |
Debt securities, Fair Value | 327.5 | 149.8 |
Agency Asset-Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt securities, Amortized Cost | 1.5 | |
Debt securities, Unrealized Gains Gross | 0.1 | |
Debt securities, Unrealized Losses Gross | 0 | |
Debt securities, Fair Value | 1.6 | |
Corporate bonds - foreign | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt securities, Amortized Cost | 10.3 | 65.9 |
Debt securities, Unrealized Gains Gross | 0 | 1.2 |
Debt securities, Unrealized Losses Gross | 0 | 0 |
Debt securities, Fair Value | $ 10.3 | 67.1 |
State & municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt securities, Amortized Cost | 1 | |
Debt securities, Unrealized Gains Gross | 0 | |
Debt securities, Unrealized Losses Gross | 0 | |
Debt securities, Fair Value | $ 1 |
Investment Securities (Schedu_5
Investment Securities (Schedule of Amortized Cost and Fair Value Maturities with Changes Recorded in Net Income) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Debt securities, Amortized Cost | $ 6,550.5 | $ 5,998.2 |
Total debt securities available-for-sale, Fair Value | $ 6,673.5 | 6,011.8 |
Weighted Average Yield | 1.69% | |
U.S. government/sponsored agency – Residential | ||
Schedule of Available-for-sale Securities [Line Items] | ||
After 5 through 10 years, Amortized Cost | $ 5.7 | |
After 10 years, Amortized Cost | 2,497.7 | |
Debt securities, Amortized Cost | 2,503.4 | 4,766.4 |
After 5 through 10 years, Fair value | 6 | |
After 10 years, Fair Value | 2,573.8 | |
Total debt securities available-for-sale, Fair Value | $ 2,579.8 | 4,773.8 |
After 5 through 10 years, Weighted Average Yield | 3.09% | |
After 10 years, Weighted Average Yield | 2.34% | |
Weighted Average Yield | 2.35% | |
U.S. government/sponsored agency – Commercial | ||
Schedule of Available-for-sale Securities [Line Items] | ||
After 1 through 5 years, Amortized Cost | $ 32.4 | |
After 5 through 10 years, Amortized Cost | 242.7 | |
After 10 years, Amortized Cost | 1,449.9 | |
Debt securities, Amortized Cost | 1,725 | 554.5 |
After 1 through 5 years, Fair Value | 35 | |
After 5 through 10 years, Fair value | 265.2 | |
After 10 years, Fair Value | 1,480.6 | |
Total debt securities available-for-sale, Fair Value | $ 1,780.8 | 564.8 |
After 1 through 5 years, Weighted Average Yield | 3.54% | |
After 5 through 10 years, Weighted Average Yield | 3.03% | |
After 10 years, Weighted Average Yield | 1.73% | |
Weighted Average Yield | 1.95% | |
U.S. government/sponsored agency obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
After 1 through 5 years, Amortized Cost | $ 420.4 | |
After 5 through 10 years, Amortized Cost | 1,053.8 | |
Debt securities, Amortized Cost | 1,474.2 | 449.4 |
After 1 through 5 years, Fair Value | 420.6 | |
After 5 through 10 years, Fair value | 1,050.2 | |
Total debt securities available-for-sale, Fair Value | $ 1,470.8 | 444 |
After 1 through 5 years, Weighted Average Yield | 0.63% | |
After 5 through 10 years, Weighted Average Yield | 0.96% | |
Weighted Average Yield | 0.86% | |
U.S. Treasury securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
1 year or less, Amortized Cost | $ 8.1 | |
After 1 through 5 years, Amortized Cost | 104.6 | |
After 5 through 10 years, Amortized Cost | 393.2 | |
Debt securities, Amortized Cost | 505.9 | 11.2 |
1 year or less, Fair Value | 8.1 | |
After 1 through 5 years, Fair Value | 104.4 | |
After 5 through 10 years, Fair value | 390.2 | |
Total debt securities available-for-sale, Fair Value | $ 502.7 | 11.3 |
1 year or less, Weighted Average Yield | 0.13% | |
After 1 through 5 years, Weighted Average Yield | 0.28% | |
After 5 through 10 years, Weighted Average Yield | 0.50% | |
Weighted Average Yield | 0.45% | |
Supranational Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
1 year or less, Amortized Cost | $ 20.5 | |
After 1 through 5 years, Amortized Cost | 56.9 | |
After 5 through 10 years, Amortized Cost | 252.8 | |
Debt securities, Amortized Cost | 330.2 | 149.8 |
1 year or less, Fair Value | 20.5 | |
After 1 through 5 years, Fair Value | 57 | |
After 5 through 10 years, Fair value | 250 | |
Total debt securities available-for-sale, Fair Value | $ 327.5 | 149.8 |
1 year or less, Weighted Average Yield | 0.15% | |
After 1 through 5 years, Weighted Average Yield | 0.47% | |
After 5 through 10 years, Weighted Average Yield | 0.85% | |
Weighted Average Yield | 0.74% | |
Agency Asset-Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
After 10 years, Amortized Cost | $ 1.5 | |
Debt securities, Amortized Cost | 1.5 | |
After 10 years, Fair Value | 1.6 | |
Total debt securities available-for-sale, Fair Value | $ 1.6 | |
After 10 years, Weighted Average Yield | 2.24% | |
Weighted Average Yield | 2.24% | |
Corporate bonds - foreign | ||
Schedule of Available-for-sale Securities [Line Items] | ||
1 year or less, Amortized Cost | $ 10.3 | |
Debt securities, Amortized Cost | 10.3 | 65.9 |
1 year or less, Fair Value | 10.3 | |
Total debt securities available-for-sale, Fair Value | $ 10.3 | $ 67.1 |
1 year or less, Weighted Average Yield | 6.03% | |
Weighted Average Yield | 6.03% |
Investment Securities (Schedu_6
Investment Securities (Schedule of AFS and HTM - Estimated Unrealized Losses) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Total securities available-for-sale, Less than 12 months, Debt securities, Fair Value | $ 1,670.4 | $ 2,078.1 |
Total securities available-for-sale, Less than 12 months, Debt securities, Gross Unrealized Loss | (10.6) | (11.7) |
Total securities available-for-sale, 12 months or greater, Debt securities, Fair Value | 0 | 878.9 |
Total securities available-for-sale, 12 months or greater, Debt securities, Gross Unrealized Loss | 0 | (12.2) |
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 | 39.3 | 1,396.5 |
Total securities available-for-sale, Less than 12 months, Debt securities, Gross Unrealized Loss | (0.1) | (4.6) |
Total securities available-for-sale, 12 months or greater, Debt securities, Fair Value | 0 | 861.3 |
Total securities available-for-sale, 12 months or greater, Debt securities, Gross Unrealized Loss | 0 | (12.1) |
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 | 267.3 | 282.7 |
Total securities available-for-sale, Less than 12 months, Debt securities, Gross Unrealized Loss | (0.5) | (1.7) |
Total securities available-for-sale, 12 months or greater, Debt securities, Fair Value | 0 | 17.6 |
Total securities available-for-sale, 12 months or greater, Debt securities, Gross Unrealized Loss | 0 | (0.1) |
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 | 628.5 | 398.9 |
Total securities available-for-sale, Less than 12 months, Debt securities, Gross Unrealized Loss | (3.9) | (5.4) |
Total securities available-for-sale, 12 months or greater, Debt securities, Fair Value | 0 | 0 |
Total securities available-for-sale, 12 months or greater, Debt securities, Gross Unrealized Loss | 0 | $ 0 |
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 | 489.9 | |
Total securities available-for-sale, Less than 12 months, Debt securities, Gross Unrealized Loss | (3.2) | |
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 | |
Supranational Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total securities available-for-sale, Less than 12 months, Debt securities, Fair Value | 245.4 | |
Total securities available-for-sale, Less than 12 months, Debt securities, Gross Unrealized Loss | (2.9) | |
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 |
Other Assets (Components of Oth
Other Assets (Components of Other Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||||
Fair value of derivative financial instruments | $ 431.6 | $ 190.7 | ||
Tax credit investments and investments in unconsolidated entities | [1] | 427 | 365.6 | |
Right of use asset | 198.8 | 194.9 | $ 210 | |
Property, furniture and fixtures | 187 | 160 | ||
Counterparty receivables | 174.1 | 126.5 | ||
Prepaid expenses | 169.9 | 98.3 | ||
Intangible assets, net | 134.9 | 66 | ||
Current and deferred federal and state tax assets | 60.8 | 55.6 | ||
Other | [2] | 464.4 | 381.6 | |
Total other assets | $ 2,248.5 | $ 1,639.2 | ||
[1] | Included in this balance are LIHTC of $299.2 million and $263.3 million as of December 31, 2020 and December 31, 2019, respectively, that provide tax benefits to investors in the form of tax deductions from operating losses and tax credits. During 2020, 2019 and 2018, the Company recorded $27.4 million, $29.8 million and $29.1 million, respectively, in tax provisions under the proportional amortization method. During 2020, 2019 and 2018, the Company recognized total tax benefits of $35.9 million, $35.5 million and $34.2 million, respectively, which included tax credits of $26.7 million, $28.0 million, and $27.0 million recorded in income taxes. The Company is periodically required to provide additional financial support during the investment period. The Company’s liability for these unfunded commitments are included in Note 12 – Other Liabilities. Refer to Note 1 – Business and Summary of Significant Accounting Policy for additional information. See also Note 9 – Variable Interest Entities. | |||
[2] | Other includes accrued interest and dividends, assets supporting legacy non-qualified compensation plans, accrued rent on operating leases, servicing advances, OREO and other miscellaneous assets. |
Other Assets (Components of O_2
Other Assets (Components of Other Assets) (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |||
Affordable housing investments | $ 299.2 | $ 263.3 | |
Tax benefits from affordable housing investments | 35.9 | 35.5 | $ 34.2 |
Tax credits from affordable housing investments | 26.7 | 28 | 27 |
Amortization expense on affordable housing investments | $ 27.4 | $ 29.8 | $ 29.1 |
Deposits (Schedule of Detail on
Deposits (Schedule of Detail on Deposit Types) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deposits [Abstract] | ||
Interest-bearing | $ 39,686.9 | $ 33,546.4 |
Non-interest bearing | 3,384.7 | 1,593.1 |
Total deposits | $ 43,071.6 | $ 35,139.5 |
Deposits (Schedule of Maturitie
Deposits (Schedule of Maturities of Time Deposits) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Time deposits, remaining contractual maturity: | |
Within one year | $ 7,638.3 |
One to two years | 1,387 |
Two to three years | 434 |
Three to four years | 647.4 |
Four to five years | 315.4 |
Over five years | 3.1 |
Total Time deposits | $ 10,425.2 |
Deposits (Schedule of Certifica
Deposits (Schedule of Certificates of Deposit $100 Thousand or More) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Time Deposits: | |
Three months or less | $ 2,243.2 |
After three months through six months | 1,446.3 |
After six months through twelve months | 1,539.8 |
After twelve months | 939.8 |
Total | $ 6,169.1 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deposits [Abstract] | ||
Aggregate time deposits, $250,000 or more | $ 2,091.8 | $ 2,284.3 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - Entity | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||
Consolidated VIEs | 0 | 0 | 0 |
Variable Interest Entities (Ass
Variable Interest Entities (Assets and Liabilities in Unconsolidated VIEs) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | |||
Total Assets | $ 58,106.6 | $ 50,832.8 | $ 48,537.4 |
Total Liabilities | 52,383.7 | 44,493.8 | |
Unconsolidated Variable Interest Entities (VIEs) | Partnership Investment | |||
Variable Interest Entity [Line Items] | |||
Total Assets | 423.4 | 361.1 | |
Total Liabilities | 168.3 | 120.1 | |
Maximum loss exposure | 423.4 | 361.1 | |
Unconsolidated Variable Interest Entities (VIEs) | Commitments to tax credit investments | Partnership Investment | |||
Variable Interest Entity [Line Items] | |||
Total Liabilities | 168.3 | 120.1 | |
Unconsolidated Variable Interest Entities (VIEs) | Debt Securities | |||
Variable Interest Entity [Line Items] | |||
Total Assets | 4,362.2 | 5,338.6 | |
Maximum loss exposure | 4,362.2 | 5,338.6 | |
Unconsolidated Variable Interest Entities (VIEs) | Debt Securities | Agency securities | |||
Variable Interest Entity [Line Items] | |||
Total Assets | 4,362.2 | 5,338.6 | |
Unconsolidated Variable Interest Entities (VIEs) | Equity securities | |||
Variable Interest Entity [Line Items] | |||
Total Assets | 111.9 | 84 | |
Unconsolidated Variable Interest Entities (VIEs) | Equity securities | Tax credit equity investments | |||
Variable Interest Entity [Line Items] | |||
Total Assets | $ 311.5 | $ 277.1 |
Borrowings (Schedule of Long-Te
Borrowings (Schedule of Long-Term Borrowings) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 5,837.3 | $ 6,473.4 |
CIT Group Inc. | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 4,418.2 | 3,916.3 |
Subsidiaries | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 1,419.1 | |
Senior | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 4,236.3 | 3,967.9 |
Senior | CIT Group Inc. | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 3,923.3 | |
Senior | Subsidiaries | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 313 | |
Subordinated notes | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 494.9 | 494.4 |
Subordinated notes | CIT Group Inc. | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 494.9 | |
FHLB advances | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 1,100 | 1,650 |
FHLB advances | Subsidiaries | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 1,100 | |
Other secured and structured financings | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 6.1 | $ 361.1 |
Other secured and structured financings | Subsidiaries | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 6.1 |
Borrowings (Schedule of Borrowi
Borrowings (Schedule of Borrowings with Contractual Maturities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Contractual Maturities | $ 5,871.1 | |
2021 | 500 | $ 14.3 |
2022 | 2,247 | |
2023 | 750 | |
2024 | 1,007.5 | |
Thereafter | 1,366.6 | |
Senior Unsecured notes | ||
Debt Instrument [Line Items] | ||
Contractual Maturities | 4,263.6 | |
2021 | 500 | |
2022 | 1,147 | |
2023 | 750 | |
2024 | 1,000 | |
Thereafter | 866.6 | |
Subordinated unsecured notes | ||
Debt Instrument [Line Items] | ||
Contractual Maturities | 500 | |
Thereafter | 500 | |
FHLB advances | ||
Debt Instrument [Line Items] | ||
Contractual Maturities | 1,100 | |
2022 | 1,100 | |
Other secured and structured financings | ||
Debt Instrument [Line Items] | ||
Contractual Maturities | 7.5 | |
2024 | $ 7.5 |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) | Feb. 09, 2021USD ($) | Jun. 19, 2020USD ($) | Nov. 30, 2019USD ($) | Mar. 31, 2018USD ($) | May 31, 2017 | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)subsidiary | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | |||||||||||||||
Net gains (losses) on extinguishment of debt | $ (100,000) | $ 14,800,000 | $ (100,000) | $ (100,000) | $ (200,000) | $ (100,000) | $ 14,700,000 | $ (500,000) | $ (38,600,000) | ||||||
Pledged assets | 14,300,000,000 | 14,300,000,000 | |||||||||||||
Pledged assets, loans | 12,500,000,000 | 12,500,000,000 | |||||||||||||
Pledged assets, investments | 1,800,000,000 | 1,800,000,000 | |||||||||||||
Pledged assets | 2,486,400,000 | 2,205,900,000 | 2,486,400,000 | 2,205,900,000 | |||||||||||
Long-term borrowings | 5,837,300,000 | 6,473,400,000 | 5,837,300,000 | 6,473,400,000 | |||||||||||
Federal Reserve System ("FRB") | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term borrowings | 0 | 0 | 0 | 0 | |||||||||||
CIT-owned Subsidiaries | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Secured borrowings | 6,100,000 | 361,100,000 | 6,100,000 | 361,100,000 | |||||||||||
Long-term borrowings | 1,419,100,000 | 1,419,100,000 | |||||||||||||
Subordinated notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term borrowings | $ 494,900,000 | $ 494,400,000 | $ 494,900,000 | $ 494,400,000 | |||||||||||
Other secured and structured financings | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Outstanding secured borrowings, weighted average percentage rate | 4.39% | 3.03% | 4.39% | 3.03% | |||||||||||
Long-term borrowings | $ 6,100,000 | $ 361,100,000 | $ 6,100,000 | $ 361,100,000 | |||||||||||
Other secured and structured financings | CIT-owned Subsidiaries | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term borrowings | 6,100,000 | 6,100,000 | |||||||||||||
3.929% Senior Unsecured Fixed-to-Floating Rate Notes due 2024 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Face amount | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | ||||||||||||
Interest rate | 3.929% | 3.929% | 3.929% | ||||||||||||
Interest payable, description | quarterly | ||||||||||||||
2.969% Senior Unsecured Fixed-to-Floating Rate Notes due 2025 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt, amount tendered | 234,800,000 | ||||||||||||||
Net gains (losses) on extinguishment of debt | 15,000,000 | ||||||||||||||
Debt instrument, purchase price of bank notes tendered | 930 | ||||||||||||||
Debt instrument, par value of bank notes tendered | 1,000 | ||||||||||||||
Senior Unsecured Note, 6.00% Maturing in 2036 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Face amount | $ 51,400,000 | $ 51,400,000 | |||||||||||||
Interest rate | 6.00% | 6.00% | |||||||||||||
Carrying value | $ 40,500,000 | $ 40,500,000 | |||||||||||||
4.125% Senior Unsecured Notes Due March 2021 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Face amount | $ 500,000,000 | $ 500,000,000 | |||||||||||||
Interest rate | 4.125% | 4.125% | |||||||||||||
4.125% Senior Unsecured Notes Due March 2021 | Subsequent Event | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate | 4.125% | ||||||||||||||
Repayments of senior notes | $ 500,000,000 | ||||||||||||||
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 | ||||||||||||||
Interest rate | 6.125% | ||||||||||||||
Debt, maturity date | Mar. 9, 2028 | ||||||||||||||
Maximum | 2.969% Senior Unsecured Fixed-to-Floating Rate Notes due 2025 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Maximum cash tender offer to purchase | $ 550,000,000 | ||||||||||||||
LIBOR | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt, applicable margin (percentage) | 3.972% | ||||||||||||||
Secured Overnight Financing Rate ("SOFR") | 3.929% Senior Unsecured Fixed-to-Floating Rate Notes due 2024 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt, applicable margin (percentage) | 3.827% | ||||||||||||||
Revolving Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Revolving credit facility, total commitment amount | $ 300,000,000 | $ 400,000,000 | $ 300,000,000 | $ 400,000,000 | |||||||||||
Revolving credit facility, reduction in total commitment amount | $ 100,000,000 | ||||||||||||||
Tier 1 Capital ratio | 0.085 | 0.090 | 0.090 | ||||||||||||
Revolving credit facility, maturity date | Mar. 1, 2021 | ||||||||||||||
Revolving credit facility, extended maturity date | Nov. 1, 2021 | ||||||||||||||
Revolving credit facility, domestic operating subsidiary guarantors | subsidiary | 3 | ||||||||||||||
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) | 1.75% | ||||||||||||||
Revolving Credit Facility | Base Rate | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt, applicable margin (percentage) | 0.75% | ||||||||||||||
Revolving Credit Facility, Not Letter of Credit | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Revolving credit facility, total commitment amount | $ 200,000,000 | $ 200,000,000 | |||||||||||||
Letters of Credit | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Revolving credit facility, total commitment amount | 100,000,000 | 100,000,000 | |||||||||||||
Outstanding borrowings | $ 35,000,000 | $ 35,000,000 |
Borrowings (Schedule of Senior
Borrowings (Schedule of Senior Unsecured Notes) (Details) - USD ($) | Dec. 31, 2020 | Jun. 19, 2020 |
Senior Unsecured notes | ||
Debt Instrument [Line Items] | ||
Par Value | $ 4,212,200,000 | |
Weighted Average Rate (%) | 4.617% | |
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 | |
3.929% Senior Unsecured Fixed-to-Floating Rate Notes due 2024 | ||
Debt Instrument [Line Items] | ||
Rate (%) | 3.929% | 3.929% |
Par Value | $ 500,000,000 | $ 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 | $ 315,200,000 |
Borrowings (Schedule of FHLB Ba
Borrowings (Schedule of FHLB Balances) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | ||
Debt Instrument [Line Items] | ||||
Total borrowing capacity | $ 7,175.3 | $ 6,350.5 | ||
Advances | (1,100) | (1,650) | ||
Available capacity | 6,075.3 | 4,700.5 | ||
Pledged assets | [1] | $ 8,868 | $ 6,987.6 | |
Weighted Average Rate | 0.82% | 2.04% | ||
Lending Assets | ||||
Debt Instrument [Line Items] | ||||
Total borrowing capacity | $ 5,494.1 | |||
Advances | (1,100) | |||
Available capacity | 4,394.1 | |||
Pledged assets | [1] | 7,083.6 | ||
High Quality Liquid Securities | ||||
Debt Instrument [Line Items] | ||||
Total borrowing capacity | 1,681.2 | |||
Available capacity | 1,681.2 | |||
Pledged assets | $ 1,784.4 | [1] | $ 50.4 | |
[1] | December 31, 2019 pledged assets included $50.4 million of HQL securities. |
Borrowings (Schedule of FHLB _2
Borrowings (Schedule of FHLB Balances) (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | ||
Debt Instrument [Line Items] | ||||
Pledged assets | [1] | $ 8,868 | $ 6,987.6 | |
HQL securities | ||||
Debt Instrument [Line Items] | ||||
Pledged assets | $ 1,784.4 | [1] | $ 50.4 | |
[1] | December 31, 2019 pledged assets included $50.4 million of HQL securities. |
Derivative Financial Instrume_3
Derivative Financial Instruments (Notional Amount and Fair Values of Derivative Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | $ 22,850.4 | $ 21,212 |
Asset Fair Value | 431.6 | 190.7 |
Liability Fair Value | (79.2) | (32) |
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 | (4.7) | (11.8) |
Less: Amounts subject to master netting agreements, Liability Fair Value | 4.7 | 11.8 |
Cash collateral pledged (received) subject to master netting agreements, Asset Fair Value | (1.2) | |
Cash collateral pledged (received) subject to master netting agreements Liability Fair Value | 42.9 | 14.3 |
Total net derivative fair values, Asset Fair Value | 426.9 | 177.7 |
Total net derivative fair values, Liability Fair Value | (31.6) | (5.9) |
Net amount presented in the Consolidated Balance Sheets, Derivative assets | 431.6 | 190.7 |
Net amount presented in the Consolidated Balance Sheets, Derivative liabilities | (79.2) | (32) |
Derivatives designated as hedging instruments (Qualifying Hedges) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 533.9 | 1,926.3 |
Asset Fair Value | 0 | 0 |
Liability Fair Value | (0.3) | (10.6) |
Derivatives designated as hedging instruments (Qualifying Hedges) | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 33.9 | 676.3 |
Asset Fair Value | 0 | 0 |
Liability Fair Value | (0.3) | (10.6) |
Derivatives designated as hedging instruments (Qualifying Hedges) | Cash flow hedge | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 500 | 1,250 |
Asset Fair Value | 0 | 0 |
Liability Fair Value | 0 | 0 |
Derivatives not designated as hedging instruments (Non-qualifying Hedges) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 22,316.5 | 19,285.7 |
Asset Fair Value | 431.6 | 190.7 |
Liability Fair Value | (78.9) | (21.4) |
Derivatives not designated as hedging instruments (Non-qualifying Hedges) | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 247.8 | 982.9 |
Asset Fair Value | 1.7 | 13.7 |
Liability Fair Value | (6) | (6.1) |
Derivatives not designated as hedging instruments (Non-qualifying Hedges) | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 21,192.9 | 17,588.1 |
Asset Fair Value | 429.6 | 176.9 |
Liability Fair Value | (72.2) | (14.5) |
Derivatives not designated as hedging instruments (Non-qualifying Hedges) | Other contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 875.8 | 714.7 |
Asset Fair Value | 0.3 | 0.1 |
Liability Fair Value | $ (0.7) | $ (0.8) |
Derivative Financial Instrume_4
Derivative Financial Instruments (Notional Amount and Fair Values of Derivative Financial Instruments) (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Variable margin balances, assets | $ 20.5 | $ 16.2 |
Variable margin balances, liabilities | $ 339.9 | $ 142.8 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Gains (Losses) of Fair Value Hedges Recognized as Interest Expense) (Details) - Fair Value Hedges - Qualifying Hedges - Interest Expense - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Recognized on Derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net recognized on fair value hedges (No ineffectiveness) | $ 0.2 | $ 3.6 | $ 0.3 |
Recognized on Hedged Item | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net recognized on fair value hedges (No ineffectiveness) | $ (0.2) | $ (3.6) | $ (0.3) |
Derivative Financial Instrume_6
Derivative Financial Instruments (Carrying Value of Hedged Items and Associated Cumulative Hedging Adjustment Related to Fair Value Hedges) (Details) - Fair Value Hedges - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Carrying Value | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Long-term Debt | $ 1,534.4 | $ 1,747 |
Carrying Value | Derivatives not designated as hedging instruments (Non-qualifying Hedges) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Long-term Debt | 1,033.9 | 499.4 |
Fair Value | Derivatives designated as hedging instruments (Qualifying Hedges) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Long-term Debt | 1.1 | 2.1 |
Fair Value | Derivatives not designated as hedging instruments (Non-qualifying Hedges) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Long-term Debt | $ 1.8 | $ 1.5 |
Derivative Financial Instrume_7
Derivative Financial Instruments (Carrying Value of Hedged Items and Associated Cumulative Hedging Adjustment Related to Fair Value Hedges) (Parenthetical) (Details) - Fair Value Hedges - Carrying Value - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Long-term Debt | $ 1,534.4 | $ 1,747 |
Derivatives not designated as hedging instruments (Non-qualifying Hedges) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Long-term Debt | $ 1,033.9 | $ 499.4 |
Derivative Financial Instrume_8
Derivative Financial Instruments (Pre-tax Net Gains (Losses) Relating to Derivatives Designated as Net Investment Hedges) (Details) - Derivatives designated as hedging instruments (Qualifying Hedges) - Foreign currency forward contracts - Net Investment Hedges - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amounts Reclassified from AOCI to Income | $ 0 | $ 0 | $ 51.5 |
Amounts Recorded in Other Comprehensive Income | (2.8) | (27.3) | 72.2 |
Total Change in AOCI for Period | $ (2.8) | $ (27.3) | $ 20.7 |
Derivative Financial Instrume_9
Derivative Financial Instruments (Gains (Losses) of Non-Qualifying Hedges Recognized as Other Non-interest Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-qualifying hedges - statement of operations impact | $ 4 | $ 38.9 | $ 16.8 |
Non-Qualifying Hedges | Interest rate contracts | Other Non-Interest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-qualifying hedges - statement of operations impact | 17.3 | 11.7 | 17.1 |
Non-Qualifying Hedges | Foreign currency forward contracts | Other Non-Interest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-qualifying hedges - statement of operations impact | (12.8) | 25.5 | (13.5) |
Non-Qualifying Hedges | Other contracts | Other Non-Interest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-qualifying hedges - statement of operations impact | $ (0.5) | $ 1.7 | $ 13.2 |
Derivative Financial Instrum_10
Derivative Financial Instruments (Narrative) (Details) - Canadian Total Return Swap (TRS) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Derivative [Line Items] | |
Termination year for agreement | 2018 |
Present value of remaining facility fee | $ 85.6 |
Decrease in liability associated with TRS transaction | 13.3 |
Net pretax charges on termination | $ 69.5 |
Other Liabilities (Components O
Other Liabilities (Components Of Other Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Other Liabilities Disclosure [Abstract] | ||||
Accrued expenses and accounts payable | $ 546.4 | $ 565.4 | ||
Lease liabilities | 249.9 | 242.6 | $ 260 | |
Commitment to fund tax credit investments | 167.7 | 119.5 | ||
Current and deferred taxes payable | 122.1 | 167.2 | ||
Accrued interest payable | 88.2 | 92.9 | ||
Fair value of derivative financial instruments | 79.2 | 32 | ||
Allowance for off-balance sheet credit exposure | 78.3 | 37.1 | ||
Other | [1] | 423.1 | 448 | |
Total other liabilities | $ 1,754.9 | $ 1,704.7 | ||
[1] | Other consists of liabilities for taxes other than income, equipment maintenance liabilities, 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, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, Fair Value | $ 6,673.5 | $ 6,011.8 |
Securities carried at fair value with changes recorded in net income | 0 | 47.2 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, Fair Value | 502.7 | 11.3 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, Fair Value | 6,673.5 | 6,011.8 |
Securities carried at fair value with changes recorded in net income | 47.2 | |
Total derivative assets at fair value — non-qualifying hedges | 431.6 | 190.7 |
Total Assets | 7,105.1 | 6,249.7 |
FDIC True-up liability | (68.8) | |
Total Liabilities | (79.2) | (100.8) |
Recurring | Derivatives not designated as hedging instruments (Non-qualifying Hedges) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative liabilities at fair value — non-qualifying hedges | (78.9) | (21.4) |
Recurring | Derivatives designated as hedging instruments (Qualifying Hedges) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative liabilities at fair value — non-qualifying hedges | (0.3) | (10.6) |
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 | 429.6 | 176.9 |
Total derivative liabilities at fair value — non-qualifying hedges | (72.2) | (14.5) |
Recurring | Other Derivative Non qualifying Hedges | Derivatives not designated as hedging instruments (Non-qualifying Hedges) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets at fair value — non-qualifying hedges | 2 | 13.8 |
Total derivative liabilities at fair value — non-qualifying hedges | (6.7) | (6.9) |
Recurring | Foreign Currency Forward Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative liabilities at fair value — non-qualifying hedges | (0.3) | (10.6) |
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 | 2,579.8 | 4,773.8 |
Recurring | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, Fair Value | 502.7 | 11.3 |
Recurring | Other Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, Fair Value | 3,591 | 1,226.7 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, Fair Value | 7.8 | 4.7 |
Securities carried at fair value with changes recorded in net income | 0.1 | |
Total derivative assets at fair value — non-qualifying hedges | 0 | |
Total Assets | 7.8 | 4.8 |
FDIC True-up liability | 0 | |
Total Liabilities | 0 | |
Recurring | Level 1 | Derivatives not designated as hedging instruments (Non-qualifying Hedges) | ||
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 (Qualifying Hedges) | ||
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 | 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 | Other Derivative Non qualifying Hedges | Derivatives not designated as hedging instruments (Non-qualifying Hedges) | ||
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 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 | 7.8 | 4.7 |
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 | 6,655.4 | 5,940 |
Securities carried at fair value with changes recorded in net income | 47.1 | |
Total derivative assets at fair value — non-qualifying hedges | 429.8 | 190.4 |
Total Assets | 7,085.2 | 6,177.5 |
FDIC True-up liability | 0 | |
Total Liabilities | (78.5) | (31.2) |
Recurring | Level 2 | Derivatives not designated as hedging instruments (Non-qualifying Hedges) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative liabilities at fair value — non-qualifying hedges | (78.2) | (20.6) |
Recurring | Level 2 | Derivatives designated as hedging instruments (Qualifying Hedges) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative liabilities at fair value — non-qualifying hedges | (0.3) | (10.6) |
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 | 428.1 | 176.7 |
Total derivative liabilities at fair value — non-qualifying hedges | (72.2) | (14.5) |
Recurring | Level 2 | Other Derivative Non qualifying Hedges | Derivatives not designated as hedging instruments (Non-qualifying Hedges) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets at fair value — non-qualifying hedges | 1.7 | 13.7 |
Total derivative liabilities at fair value — non-qualifying hedges | (6) | (6.1) |
Recurring | Level 2 | Foreign Currency Forward Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative liabilities at fair value — non-qualifying hedges | (0.3) | (10.6) |
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 | 2,579.8 | 4,773.8 |
Recurring | Level 2 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, Fair Value | 494.9 | 6.6 |
Recurring | Level 2 | Other Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, Fair Value | 3,580.7 | 1,159.6 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, Fair Value | 10.3 | 67.1 |
Securities carried at fair value with changes recorded in net income | 0 | |
Total derivative assets at fair value — non-qualifying hedges | 1.8 | 0.3 |
Total Assets | 12.1 | 67.4 |
FDIC True-up liability | (68.8) | |
Total Liabilities | (0.7) | (69.6) |
Recurring | Level 3 | Derivatives not designated as hedging instruments (Non-qualifying Hedges) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative liabilities at fair value — non-qualifying hedges | (0.7) | (0.8) |
Recurring | Level 3 | Derivatives designated as hedging instruments (Qualifying Hedges) | ||
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 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 | 1.5 | 0.2 |
Total derivative liabilities at fair value — non-qualifying hedges | 0 | |
Recurring | Level 3 | Other Derivative Non qualifying Hedges | Derivatives not designated as hedging instruments (Non-qualifying Hedges) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets at fair value — non-qualifying hedges | 0.3 | 0.1 |
Total derivative liabilities at fair value — non-qualifying hedges | (0.7) | (0.8) |
Recurring | Level 3 | Foreign Currency Forward Contract | ||
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 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 | $ 10.3 | $ 67.1 |
Fair Value (Quantitative Inform
Fair Value (Quantitative Information about Level 3 Fair Value Measurements-Recurring) (Details) $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value - assets | $ 7,105.1 | $ 6,249.7 |
Estimated fair value liabilities | (79.2) | (100.8) |
Level 3 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value - assets | 12.1 | 67.4 |
Estimated fair value liabilities | (0.7) | (69.6) |
Level 3 | Derivative Assets — Non-Qualifying | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value - assets | 1.8 | 0.3 |
Level 3 | Derivative Liabilities — Non-Qualifying | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value liabilities | $ (0.7) | $ (0.8) |
Level 3 | FDIC True-up Liability | Discount Rate | Valuation Technique, Discounted Cash Flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability measurement input | 2.2 | |
Level 3 | FDIC True-up Liability | Weighted Avg. | Discount Rate | Valuation Technique, Discounted Cash Flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability measurement input | 2.2 | |
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) | |
Level 3 | Debt Securities — AFS | Minimum | Discount Rate | Valuation Technique, Discounted Cash Flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities — AFS price measurement input | 8.5 | 6 |
Level 3 | Debt Securities — AFS | Maximum | Discount Rate | Valuation Technique, Discounted Cash Flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities — AFS price measurement input | 10.4 | 6.2 |
Level 3 | Debt Securities — AFS | Weighted Avg. | Discount Rate | Valuation Technique, Discounted Cash Flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities — AFS price measurement input | 9.5 | 6 |
Level 3 | Debt Securities — AFS | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value - assets | $ 10.3 | $ 67.1 |
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 | 1.9 | 2.8 |
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 | 3.6 | 5 |
Level 3 | Derivative Assets — Non-Qualifying | Weighted Avg. | Borrower Rate | Internal Valuation Model | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets — non qualifying, measurement input | 2.7 | 3.6 |
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, 2020 | Dec. 31, 2019 | |
Securities — AFS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 67.1 | $ 65.9 |
Included in earnings | 0.1 | 0.1 |
Included in comprehensive income | (1.2) | 1.1 |
Maturity and settlements | (54) | |
Impairment | (1.7) | |
Ending Balance | 10.3 | 67.1 |
Derivative Assets — Non-Qualifying | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 0.3 | 0.4 |
Included in earnings | 1.5 | (0.1) |
Included in comprehensive income | 0 | 0 |
Ending Balance | 1.8 | 0.3 |
Derivative Liabilities — Non-Qualifying | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | (0.8) | |
Included in earnings | 0.1 | (0.8) |
Included in comprehensive income | 0 | 0 |
Ending Balance | (0.7) | (0.8) |
FDIC True-up Liability | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | (68.8) | (66.9) |
Included in earnings | (0.2) | (1.9) |
Included in comprehensive income | 0 | 0 |
Maturity and settlements | $ 69 | |
Ending Balance | $ (68.8) |
Fair Value (Assets Measured at
Fair Value (Assets Measured at Fair Value on a Non-Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | $ 720.7 | $ 29.7 |
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 | 14.5 | 7.5 |
Fair Value | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | 706.2 | 22.2 |
Fair Value | Fair Value, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | 701.6 | 22.6 |
Loans | 106.4 | |
Mortgage servicing rights | 4.3 | |
Impaired loans | 244.8 | |
Tax credit investments | 82 | |
ROU assets | 4.4 | |
Total Assets | 816.7 | 349.4 |
Fair Value | Fair Value, Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | 0 | 0 |
Loans | 0 | |
Mortgage servicing rights | 0 | |
Impaired loans | 0 | |
Tax credit investments | 0 | |
ROU assets | 0 | |
Total Assets | 0 | 0 |
Fair Value | Fair Value, Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | 0 | 1.9 |
Loans | 0 | |
Mortgage servicing rights | 0 | |
Impaired loans | 0 | |
Tax credit investments | 0 | |
ROU assets | 0 | |
Total Assets | 0 | 1.9 |
Fair Value | Fair Value, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | 701.6 | 20.7 |
Loans | 106.4 | |
Mortgage servicing rights | 4.3 | |
Impaired loans | 244.8 | |
Tax credit investments | 82 | |
ROU assets | 4.4 | |
Total Assets | 816.7 | 347.5 |
Total Gains (Losses) | Fair Value, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | (112.7) | 2.2 |
Loans | (55.6) | |
Mortgage servicing rights | (4.5) | |
Impaired loans | (73.5) | |
Tax credit investments | (5.1) | |
ROU assets | (6.1) | |
Total Assets | $ (178.9) | $ (76.4) |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Fair Value Disclosures [Abstract] | |
Impairment loss on tax credit investments | $ 5.1 |
Fair Value (Carrying and Estima
Fair Value (Carrying and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Assets | |||
Cash and interest bearing deposits | $ 3,837.1 | $ 1,695.5 | $ 1,596.8 |
Securities purchased under agreement to resell | 150 | 950 | |
Financial Liabilities | |||
Credit balances of factoring clients | (1,719.9) | (1,176.2) | $ (1,674.4) |
Carrying Value | |||
Financial Assets | |||
Cash and interest bearing deposits | 4,011.7 | 2,685.6 | |
Assets held for sale (excluding leases) | 720 | 29.6 | |
Loans (excluding leases) | 32,812.9 | 28,297.4 | |
Securities purchased under agreement to resell | 150 | 950 | |
Investment securities | 215.5 | 217.8 | |
Financial Liabilities | |||
Deposits | (43,086) | (35,156.2) | |
Borrowings | (5,911.1) | (6,549.6) | |
Credit balances of factoring clients | (1,719.9) | (1,176.2) | |
Fair Value | |||
Financial Assets | |||
Cash and interest bearing deposits | 4,011.7 | 2,685.6 | |
Assets held for sale (excluding leases) | 720.7 | 29.7 | |
Loans (excluding leases) | 33,617.5 | 28,798.8 | |
Securities purchased under agreement to resell | 150 | 950 | |
Investment securities | 215.5 | 217.8 | |
Financial Liabilities | |||
Deposits | (43,224) | (35,263.8) | |
Borrowings | (6,379.3) | (6,897.2) | |
Credit balances of factoring clients | (1,719.9) | (1,176.2) | |
Fair Value | Level 1 | |||
Financial Assets | |||
Cash and interest bearing deposits | 4,011.7 | 2,685.6 | |
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 | |
Financial Liabilities | |||
Deposits | 0 | 0 | |
Borrowings | 0 | 0 | |
Credit balances of factoring clients | 0 | 0 | |
Fair Value | Level 2 | |||
Financial Assets | |||
Cash and interest bearing deposits | 0 | 0 | |
Assets held for sale (excluding leases) | 14.5 | 7.5 | |
Loans (excluding leases) | 1,332.1 | 1,114.5 | |
Securities purchased under agreement to resell | 150 | 950 | |
Investment securities | 0 | 0 | |
Financial Liabilities | |||
Deposits | 0 | 0 | |
Borrowings | (6,371.3) | (6,532) | |
Credit balances of factoring clients | 0 | 0 | |
Fair Value | Level 3 | |||
Financial Assets | |||
Cash and interest bearing deposits | 0 | 0 | |
Assets held for sale (excluding leases) | 706.2 | 22.2 | |
Loans (excluding leases) | 32,285.4 | 27,684.3 | |
Securities purchased under agreement to resell | 0 | 0 | |
Investment securities | 215.5 | 217.8 | |
Financial Liabilities | |||
Deposits | (43,224) | (35,263.8) | |
Borrowings | (8) | (365.2) | |
Credit balances of factoring clients | $ (1,719.9) | $ (1,176.2) |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Jan. 01, 2020 | Nov. 13, 2019 | May 31, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Equity Class Of Treasury Stock [Line Items] | ||||||
Preferred stock issued value | $ 525 | $ 525 | ||||
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 | |||
Dividends | $ 171.5 | $ 146.7 | $ 115.9 | |||
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 | ||||
MOB | Common Stock | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Number of shares issued | 3.1 |
Stockholder's Equity (Schedule
Stockholder's Equity (Schedule of Common Stock Activity) (Details) | 12 Months Ended |
Dec. 31, 2020shares | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Beginning balance, outstanding (in shares) | 94,742,564 |
Beginning balance, issued (in shares) | 162,188,287 |
Common stock issuance - acquisition | 3,094,697 |
Restricted stock issued (in shares) | 923,505 |
Shares held to cover taxes on vesting restricted shares and other (in shares) | (349,440) |
Employee stock purchase plan participation (in shares) | 198,069 |
Ending balance, outstanding (in shares) | 98,609,395 |
Ending balance, issued (in shares) | 163,309,861 |
Issued | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Beginning balance, issued (in shares) | 162,188,287 |
Restricted stock issued (in shares) | 923,505 |
Employee stock purchase plan participation (in shares) | 198,069 |
Ending balance, issued (in shares) | 163,309,861 |
Less Treasury | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Beginning balance, outstanding (in shares) | (67,445,723) |
Common stock issuance - acquisition | 3,094,697 |
Shares held to cover taxes on vesting restricted shares and other (in shares) | (349,440) |
Ending balance, outstanding (in shares) | (64,700,466) |
Stockholders' Equity (Component
Stockholders' Equity (Components of Accumulated Other Comprehensive Income (Loss) ("AOCI")) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Gross Unrealized | $ 77.9 | $ (39.6) |
Income Taxes | (42.2) | (12.5) |
Net Unrealized | 35.7 | (52.1) |
Foreign currency translation adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Gross Unrealized | (2.6) | (1.9) |
Income Taxes | (6.5) | (7.2) |
Net Unrealized | (9.1) | (9.1) |
Changes in benefit plans net loss and prior service (cost)/credit | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Gross Unrealized | (42.5) | (51.3) |
Income Taxes | (3.6) | (1.3) |
Net Unrealized | (46.1) | (52.6) |
Net gains (loss) on securities AFS | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Gross Unrealized | 123 | 13.6 |
Income Taxes | (32.1) | (4) |
Net Unrealized | $ 90.9 | $ 9.6 |
Stockholders' Equity (Changes i
Stockholders' Equity (Changes in Accumulated Other Comprehensive Income (Loss) by Component) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net current period AOCI | $ 87.8 | $ 126.2 | $ (91.3) |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (9.1) | (20.9) | |
AOCI activity before reclassifications | 11.8 | ||
Net current period AOCI | 11.8 | ||
Ending balance | (9.1) | (9.1) | (20.9) |
Changes in benefit plan net gain (loss) and prior service (cost) credit | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (52.6) | (70.2) | |
AOCI activity before reclassifications | 6.1 | 17.6 | |
Amounts reclassified from AOCI | 0.4 | ||
Net current period AOCI | 6.5 | 17.6 | |
Ending balance | (46.1) | (52.6) | (70.2) |
Unrealized net gains (losses) on AFS securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 9.6 | (87.2) | |
AOCI activity before reclassifications | 108.9 | 100.4 | |
Amounts reclassified from AOCI | (27.6) | (3.6) | |
Net current period AOCI | 81.3 | 96.8 | |
Ending balance | 90.9 | 9.6 | (87.2) |
Total AOCI | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (52.1) | (178.3) | |
AOCI activity before reclassifications | 115 | 129.8 | |
Amounts reclassified from AOCI | (27.2) | (3.6) | |
Net current period AOCI | 87.8 | 126.2 | (91.3) |
Ending balance | $ 35.7 | $ (52.1) | $ (178.3) |
Stockholders' Equity (Reclassif
Stockholders' Equity (Reclassifications out of AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Gross Amount | $ 117.5 | $ 159.1 | |
Tax | (29.7) | (32.9) | |
Net current period AOCI | 87.8 | 126.2 | $ (91.3) |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Gross Amount | (0.7) | 4.8 | |
Tax | 0.7 | 7 | |
Net current period AOCI | 11.8 | ||
Foreign currency translation adjustments | AOCI activity before reclassification | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Gross Amount | (0.7) | 4.8 | |
Tax | 0.7 | 7 | |
Net current period AOCI | 11.8 | ||
Changes in benefit plans net loss and prior service (cost)/credit | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Gross Amount | 8.8 | 23.6 | |
Tax | (2.3) | (6) | |
Net current period AOCI | 6.5 | 17.6 | |
Changes in benefit plans net loss and prior service (cost)/credit | Reclassifications Out of AOCI | Operating Expenses | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Gross Amount | 0.5 | ||
Tax | (0.1) | ||
Net current period AOCI | 0.4 | ||
Changes in benefit plans net loss and prior service (cost)/credit | AOCI activity before reclassification | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Gross Amount | 8.3 | 23.6 | |
Tax | (2.2) | (6) | |
Net current period AOCI | 6.1 | 17.6 | |
Unrealized net gains (losses) on AFS securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Gross Amount | 109.4 | 130.7 | |
Tax | (28.1) | (33.9) | |
Net current period AOCI | 81.3 | 96.8 | |
Unrealized net gains (losses) on AFS securities | Reclassifications Out of AOCI | Other Non-interest income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Gross Amount | (37.1) | (4.8) | |
Tax | 9.5 | 1.2 | |
Net current period AOCI | (27.6) | (3.6) | |
Unrealized net gains (losses) on AFS securities | AOCI activity before reclassification | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Gross Amount | 146.5 | 135.5 | |
Tax | (37.6) | (35.1) | |
Net current period AOCI | $ 108.9 | $ 100.4 |
Regulatory Capital (Narrative)
Regulatory Capital (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Option to delay term | 2 years | |||
Transition period | 3 years | |||
Transition period including option to delay term | 5 years | |||
Transition period start date | Jan. 1, 2022 | |||
Impact to retained earnings | $ (1,428.3) | $ (2,307.6) | ||
Initial non-PCD Charge | $ 91.5 | |||
Percentage of scaling factor of change in reserve for Non-PCD Loans | 25.00% | |||
Percentage of scaling factor of change in Non-PCD ACL year two | 25.00% | |||
Percentage of transitional benefits recognized in regulatory capital in year three | 75.00% | |||
Percentage of transitional benefits recognized in regulatory capital in year four | 50.00% | |||
Percentage of transitional benefits recognized in regulatory capital in year five | 25.00% | |||
Increase to CET1 Capital | $ 174 | |||
Mutual of Omaha Bank ("MOB") | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Initial non-PCD Charge | $ 366.1 | |||
Initial non-PCD charge percentage | 25.00% | |||
Cumulative Effect of Adoption | ASU 2016-13 | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Impact to retained earnings | $ 82.4 |
Regulatory Capital (Tier 1 Capi
Regulatory Capital (Tier 1 Capital And Total Capital Components) (Details) $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Common Equity Tier 1 Capital | $ 5,192.8 | $ 5,444.4 | |
Tier 1 Capital | 5,717.8 | 5,969.3 | |
Total Capital | 6,863.2 | 6,983.3 | |
Risk-Weighted Assets | $ 51,847 | $ 45,262 | |
Common Equity Tier 1 Capital Ratio: | |||
Actual | 0.100 | 0.120 | |
Effective minimum ratios under Basel III guidelines | [1] | 0.070 | 0.070 |
Tier 1 Capital Ratio: | |||
Actual | 0.110 | 0.132 | |
Effective minimum ratios under Basel III guidelines | [1] | 0.085 | 0.085 |
BHC and PCA Well-Capitalized | 0.060 | 0.060 | |
Total Capital Ratio: | |||
Actual | 0.132 | 0.154 | |
Effective minimum ratios under Basel III guidelines | [1] | 0.105 | 0.105 |
BHC and PCA Well-Capitalized | 0.100 | 0.100 | |
Tier 1 Leverage Ratio: | |||
Actual | 0.095 | 0.119 | |
Required minimum ratio for capital adequacy purposes | [1] | 0.040 | 0.040 |
CIT Bank, N.A. | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Common Equity Tier 1 Capital | $ 4,907.7 | $ 4,879.6 | |
Tier 1 Capital | 4,907.7 | 4,879.6 | |
Total Capital | 5,760.1 | 5,644.3 | |
Risk-Weighted Assets | $ 43,962.5 | $ 37,150.5 | |
Common Equity Tier 1 Capital Ratio: | |||
Actual | 0.112 | 0.131 | |
Effective minimum ratios under Basel III guidelines | [1] | 0.070 | 0.070 |
BHC and PCA Well-Capitalized | 0.065 | 0.065 | |
Tier 1 Capital Ratio: | |||
Actual | 0.112 | 0.131 | |
Effective minimum ratios under Basel III guidelines | [1] | 0.085 | 0.085 |
BHC and PCA Well-Capitalized | 0.080 | 0.080 | |
Total Capital Ratio: | |||
Actual | 0.131 | 0.152 | |
Effective minimum ratios under Basel III guidelines | [1] | 0.105 | 0.105 |
BHC and PCA Well-Capitalized | 0.100 | 0.100 | |
Tier 1 Leverage Ratio: | |||
Actual | 0.089 | 0.110 | |
Required minimum ratio for capital adequacy purposes | [1] | 0.040 | 0.040 |
BHC and PCA Well-Capitalized | 0.050 | 0.050 | |
[1] | Required minimum ratios include stated minimums of 4.5%, 6% and 8% for CET1 capital, Tier 1 capital and Total capital ratios, respectively, plus the fully phased-in capital conservation buffer of 2.5%. |
Regulatory Capital (Tier 1 Ca_2
Regulatory Capital (Tier 1 Capital And Total Capital Components) (Parenthetical) (Details) | Dec. 31, 2020 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Common equity Tier 1 Capital ratio, minimum stated | 4.50% |
Tier 1 capital ratio, minimum stated | 6.00% |
Total capital ratio, minimum stated | 8.00% |
Capital conservation buffer rate | 2.50% |
CIT Bank, N.A. | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Capital conservation buffer rate | 2.50% |
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, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||
Earnings Per Share [Abstract] | |||||||||||||||
(Loss) income from continuing operations | $ (615.3) | $ 529.4 | $ 472.1 | ||||||||||||
Preferred stock dividends | 31.1 | 18.9 | 18.9 | ||||||||||||
(Loss) income from continuing operations available to common shareholders | $ (3.6) | $ 82.9 | $ (97.6) | $ (628.1) | $ 121.1 | $ 142.8 | $ 127.4 | $ 119.2 | (646.4) | 510.5 | 453.2 | ||||
Income (loss) from discontinued operations | 0.5 | (25) | |||||||||||||
Net (loss) income available to common shareholders | $ (3.6) | $ 82.9 | $ (97.6) | $ (628.1) | $ 121.1 | $ 142.8 | $ 128.2 | $ 118.9 | $ (646.4) | $ 511 | $ 428.2 | ||||
Weighted Average Common Shares Outstanding | |||||||||||||||
Basic shares outstanding (in shares) | 98,405 | 96,503 | 117,653 | ||||||||||||
Stock-based awards (in shares) | [1],[2] | 418 | 1,124 | ||||||||||||
Diluted shares outstanding (in shares) | 98,405 | 96,921 | 118,777 | ||||||||||||
Basic (loss) income per common share | |||||||||||||||
(Loss) income from continuing operations | $ (6.57) | $ 5.29 | $ 3.85 | ||||||||||||
Income (loss) from discontinued operations | 0.01 | (0.21) | |||||||||||||
Basic (loss) income per share | (6.57) | 5.30 | 3.64 | ||||||||||||
Diluted (loss) income per common share | |||||||||||||||
(Loss) income from continuing operations | [1] | (6.57) | 5.27 | 3.82 | |||||||||||
Loss from discontinued operations | 0 | 0 | (0.21) | ||||||||||||
Diluted (loss) income per share | $ (0.04) | $ 0.84 | $ (0.99) | $ (6.40) | $ 1.27 | $ 1.50 | $ 1.33 | $ 1.18 | $ (6.57) | [1] | $ 5.27 | [1] | $ 3.61 | [1] | |
[1] | Due to the net loss for the year ended December 31, 2020, the diluted earnings per share calculation excluded an insignificant amount of weighted average restricted shares, performance shares, and options, as they were anti-dilutive. The basic weighted average shares outstanding and net loss for the year ended December 31, 2020 were utilized for the diluted earnings per share calculation. | ||||||||||||||
[2] | 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 0.9 million, 0.8 million, and 0.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
Earnings Per Share (Computati_2
Earnings Per Share (Computation of Basic and Diluted Earnings Per Share) (Parenthetical) (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Shares, Performance Shares, and Out-Of-The Money Options | |||
Weighted average shares excluded from diluted earnings per share (in shares) | 0.9 | 0.8 | 0.5 |
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, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Rental income on operating leases | $ 198.9 | $ 201.3 | $ 200.9 | $ 209.8 | $ 215.3 | $ 211.7 | $ 213 | $ 217.7 | $ 810.9 | $ 857.7 | $ 1,009 |
Other non-interest income | 161.3 | 146 | 102.6 | 130.6 | 111.3 | 101 | 106.1 | 96.8 | 540.5 | 415.2 | 373.8 |
Total non-interest income | 1,351.4 | 1,272.9 | 1,382.8 | ||||||||
Other non-interest income | |||||||||||
Gains on leasing equipment, net of impairments | 92.5 | 71.1 | 59.5 | ||||||||
BOLI income | 39.9 | 29.1 | 25.5 | ||||||||
Gains on investment securities, net of impairments | 38.1 | 6.2 | 15.3 | ||||||||
Property tax income | 17.9 | 22.2 | |||||||||
Other income | 135.6 | 71.1 | 67.6 | ||||||||
Total other non-interest income | $ 161.3 | $ 146 | $ 102.6 | $ 130.6 | $ 111.3 | $ 101 | $ 106.1 | $ 96.8 | 540.5 | 415.2 | 373.8 |
Factoring Commissions | |||||||||||
Other non-interest income | |||||||||||
Revenues | 83.3 | 98.8 | 102.4 | ||||||||
Fee Income | |||||||||||
Other non-interest income | |||||||||||
Revenues | $ 133.2 | $ 116.7 | $ 103.5 |
Non-Interest Expenses (Schedule
Non-Interest Expenses (Schedule Of Non-Interest Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Noninterest Expense [Abstract] | |||||||||||
Depreciation on operating lease equipment | $ 85.5 | $ 82.5 | $ 81.1 | $ 78.3 | $ 76.4 | $ 76 | $ 76.8 | $ 79.4 | $ 327.4 | $ 308.6 | $ 311.1 |
Maintenance and other operating lease expenses | 54.2 | 48.6 | 56.1 | 53.6 | 40.7 | 41.9 | 48.3 | 49.8 | 212.5 | 180.7 | 230.4 |
Operating expenses | 319.6 | 295.5 | 360.4 | 334.4 | 258.5 | 310.8 | 267.8 | 276.1 | 1,309.9 | 1,113.2 | 1,070 |
Goodwill impairment | 140.4 | 344.7 | 485.1 | ||||||||
(Gain) loss on debt extinguishments and deposit redemptions | 0.1 | (14.8) | 0.1 | 0.1 | 0.2 | 0.1 | (14.7) | 0.5 | 38.6 | ||
Total non-interest expenses | 2,320.2 | 1,603 | 1,650.1 | ||||||||
Operating expenses | |||||||||||
Compensation and benefits | 649.4 | 566.8 | 558.4 | ||||||||
Technology | 157 | 135.8 | 131.5 | ||||||||
Professional fees | 104.3 | 75.9 | 82.7 | ||||||||
Net occupancy expense | 93.5 | 91.3 | 65.6 | ||||||||
Insurance | 81.5 | 51.1 | 68.3 | ||||||||
Restructuring charge | 37.2 | 15.1 | |||||||||
Advertising and marketing | 34.1 | 40.4 | 47.6 | ||||||||
Intangible asset amortization | 33.9 | 23.2 | 23.9 | ||||||||
Property tax expense | 19.1 | 24.1 | |||||||||
Other expenses | 99.9 | 89.5 | 92 | ||||||||
Total operating expenses | $ 319.6 | $ 295.5 | $ 360.4 | $ 334.4 | $ 258.5 | $ 310.8 | $ 267.8 | $ 276.1 | $ 1,309.9 | $ 1,113.2 | $ 1,070 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Examination [Line Items] | |||
Income from continuing operations before provision / (benefit) for income taxes | $ (703.4) | $ 623.9 | $ 637 |
U.S. operations | |||
Income Tax Examination [Line Items] | |||
Income from continuing operations before provision / (benefit) for income taxes | (759.2) | 609.2 | 471.4 |
Non-U.S. operations | |||
Income Tax Examination [Line Items] | |||
Income from continuing operations before provision / (benefit) for income taxes | $ 55.8 | $ 14.7 | $ 165.6 |
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, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||||||||
Current U.S. federal income tax provision / (benefit) | $ (16) | $ (10.9) | $ 29.5 | ||||||||
Deferred U.S. federal income tax provision / (benefit) | (52.2) | 118.1 | 56.1 | ||||||||
Total federal income tax provision / (benefit) | (68.2) | 107.2 | 85.6 | ||||||||
Current state and local income tax provision / (benefit) | 22.3 | (2.1) | 8.4 | ||||||||
Deferred state and local income tax provision / (benefit) | (44.9) | 51.4 | 24.8 | ||||||||
Total state and local income tax provision / (benefit) | (22.6) | 49.3 | 33.2 | ||||||||
Total non-U.S. income tax provision / (benefit) | 2.7 | (61.8) | 37.6 | ||||||||
Total provision / (benefit) for income taxes | (88.1) | 94.7 | 156.4 | ||||||||
Continuing operations | $ 27.9 | $ 29.5 | $ (73.2) | $ (72.3) | $ 49.3 | $ (26) | $ 33.4 | $ 37.8 | $ (88.1) | 94.5 | 164.9 |
Discontinued operations | $ 0.2 | $ (8.5) |
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, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Increase (decrease) due to: | |||||||||||
Effective Tax Rate — continuing operations | $ 27.9 | $ 29.5 | $ (73.2) | $ (72.3) | $ 49.3 | $ (26) | $ 33.4 | $ 37.8 | $ (88.1) | $ 94.5 | $ 164.9 |
Total provision / (benefit) for income taxes | $ (88.1) | $ 94.7 | $ 156.4 | ||||||||
Total Effective Tax Rate | 12.50% | 15.20% | 25.90% | ||||||||
Continuing Operations | |||||||||||
Effective Income Tax Rate Reconciliation [Line Items] | |||||||||||
Pretax Income | $ (703.4) | $ 623.9 | $ 637 | ||||||||
Income tax expense (benefit) | |||||||||||
Federal income tax rate | $ (147.7) | $ 131.1 | $ 133.8 | ||||||||
Federal income tax rate | 21.00% | 21.00% | 21.00% | ||||||||
Increase (decrease) due to: | |||||||||||
State and local income taxes, net of federal income tax (benefit) provision | $ (30.5) | $ 32.1 | $ 30.2 | ||||||||
Non-deductible goodwill | 80.8 | ||||||||||
Domestic tax credits | (12.6) | (11.1) | (13.2) | ||||||||
Deferred tax asset adjustment | 21.2 | ||||||||||
Effect of tax law changes | (1.7) | ||||||||||
Difference in tax rates applicable to non-U.S. earnings | 0.4 | (1.4) | 7.2 | ||||||||
International income subject to U.S. tax | 1.1 | 8.7 | |||||||||
Unrecognized tax expense (benefit) | (3.6) | (12.1) | 1.5 | ||||||||
Deferred income taxes on international unremitted earnings | (53.4) | 12.4 | |||||||||
International restructuring | 13.6 | ||||||||||
Valuation allowances | (1) | (10) | (28.9) | ||||||||
Other | 6.6 | 18.2 | (0.4) | ||||||||
Effective Tax Rate — continuing operations | $ (88.1) | $ 94.5 | $ 164.9 | ||||||||
State and local income taxes, net of federal income tax (benefit) provision | 4.30% | 5.10% | 4.70% | ||||||||
Non-deductible goodwill | (11.50%) | ||||||||||
Domestic tax credits | 1.80% | (1.80%) | (2.10%) | ||||||||
Deferred tax asset adjustment | (3.00%) | ||||||||||
Effect of tax law changes | 0.3 | ||||||||||
Difference in tax rates applicable to non-U.S. earnings | (0.10%) | (0.20%) | 1.10% | ||||||||
International income subject to U.S. tax | 0.20% | 1.40% | |||||||||
Unrecognized tax expense (benefit) | 0.50% | (1.90%) | 0.20% | ||||||||
Deferred income taxes on international unremitted earnings | (8.60%) | 1.90% | |||||||||
International restructuring | 2.20% | ||||||||||
Valuation allowances | 0.10% | (1.60%) | (4.40%) | ||||||||
Other | (0.90%) | 2.90% | (0.10%) | ||||||||
Effective Tax Rate — continuing operations | 12.50% | 15.10% | 25.90% | ||||||||
Discontinued Operations | |||||||||||
Effective Income Tax Rate Reconciliation [Line Items] | |||||||||||
Pretax Income | $ 0.7 | $ (33.4) | |||||||||
Income tax expense (benefit) | |||||||||||
Federal income tax rate | $ 0.1 | $ (7) | |||||||||
Federal income tax rate | 21.00% | 21.00% | |||||||||
Increase (decrease) due to: | |||||||||||
State and local income taxes, net of federal income tax (benefit) provision | $ 0.1 | $ (1.5) | |||||||||
Effective Tax Rate — discontinued operations | $ 0.2 | $ (8.5) | |||||||||
State and local income taxes, net of federal income tax (benefit) provision | 4.70% | 4.30% | |||||||||
Effective Tax Rate — discontinued operations | 25.70% | 25.30% |
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, 2020 | Dec. 31, 2019 |
Deferred Tax Assets: | ||
Net operating loss (NOL) carry forwards | $ 410.7 | $ 686.2 |
Basis difference in loans | 101.7 | 177.6 |
Provision for credit losses | 313.7 | 130.6 |
Accrued liabilities and reserves | 100.3 | 87.2 |
Deferred stock-based compensation | 14.9 | 18 |
Domestic tax credits | 102.7 | 117.3 |
Capital loss carryforward | 2.8 | 2.5 |
Goodwill and intangible assets | 18.9 | |
Capitalized costs | 218 | |
Other | 61.9 | 48.3 |
Total gross deferred tax assets | 1,345.6 | 1,267.7 |
Deferred Tax Liabilities: | ||
Operating leases | (1,214) | (1,153.4) |
Loans and direct financing leases | (23.6) | (20.8) |
Basis difference in federal home loan bank stock | (5.5) | (5.5) |
Non-U.S. unremitted earnings | (0.6) | |
Unrealized net gains on securities AFS | (30.4) | (5.7) |
Goodwill and intangibles | (23.3) | |
Other | (29.3) | (25) |
Total deferred tax liabilities | (1,302.8) | (1,234.3) |
Total net deferred tax asset before valuation allowances | 42.8 | 33.4 |
Less: valuation allowances | (111) | (198.5) |
Net deferred tax liability after valuation allowances | $ (68.2) | $ (165.1) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | ||
Net operating loss (NOL) carry forwards | $ 410.7 | $ 686.2 |
Capital loss carryforwards valuation allowance | 0.5 | |
Capital losses carry forward period | 5 years | |
Deferred tax assets, valuation allowance | $ 111 | 198.5 |
Domestic tax credits | 102.7 | 117.3 |
Reduction in uncertain tax positions | (3.2) | |
Recognized increase in interest and penalties associated with uncertain tax positions | 0.2 | |
Accrual for interest and penalties | 6.3 | |
Unrecognized tax benefits | 16.7 | 19.9 |
Increase(decrease) to tax benefits potential liability penalties | 10 | |
U.S. Federal | ||
Income Tax Contingency [Line Items] | ||
Deferred tax asset | 208.6 | |
Operating loss carryforwards | $ 1,000 | |
Operating loss carryforwards, expiration period | 2029 | |
Operating loss carryforwards, valuation allowance | $ 0 | |
Capital loss carryforwards valuation allowance | 0.4 | |
Domestic tax credits | $ 92.4 | |
Tax credit carryforward expiration period | 2035 | |
U.S. State | ||
Income Tax Contingency [Line Items] | ||
Deferred tax asset | $ 192.9 | |
Operating loss carryforwards | $ 3,200 | |
Operating loss carryforwards, expiration period | 2021 | |
Deferred tax assets related to net operating loss (NOL), wrote-off | $ 85 | |
Reversal of valuation allowance | 85 | |
Operating loss carryforwards, valuation allowance | 97.1 | |
Capital loss carryforwards valuation allowance | 0.1 | |
Domestic tax credits | $ 10.3 | |
Tax credit carryforward expiration period | 2025 | |
Foreign Tax Authority | ||
Income Tax Contingency [Line Items] | ||
Deferred tax asset | $ 9.2 | |
Operating loss carryforwards | 36.9 | |
Deferred tax assets, valuation allowance | $ 13.9 | $ 14.8 |
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, 2020USD ($) | |
Income Tax Contingency [Line Items] | |
Beginning balance | $ 19.9 |
Additions for tax positions related to prior years | 1.9 |
Reductions for tax positions of prior years | (0.8) |
Expiration of statutes of limitations | (4.7) |
Settlements | 0.3 |
Foreign currency revaluation | 0.1 |
Ending balance | 16.7 |
Liabilities for Unrecognized Tax Benefits | |
Income Tax Contingency [Line Items] | |
Beginning balance | 13.4 |
Additions for tax positions related to prior years | 1 |
Reductions for tax positions of prior years | (0.5) |
Expiration of statutes of limitations | (3.8) |
Settlements | 0.2 |
Foreign currency revaluation | 0.1 |
Ending balance | 10.4 |
Interest / Penalties | |
Income Tax Contingency [Line Items] | |
Beginning balance | 6.5 |
Additions for tax positions related to prior years | 0.9 |
Reductions for tax positions of prior years | (0.3) |
Expiration of statutes of limitations | (0.9) |
Settlements | 0.1 |
Ending balance | $ 6.3 |
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, 2020 | |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Interest credit for accumulated balances | 2.16% | 2.98% | 2.60% |
Cost of defined contribution plans | $ 16.6 | $ 20.5 | $ 19.2 |
Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected future contributions for defined benefit plans in next fiscal year | $ 8.1 | ||
Retirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Policy target percentage in growth assets | 24.00% | ||
Policy target percentage in liability hedging assets | 76.00% | ||
Tolerances percentage on the growth and liability hedging portfolios | 5.00% | ||
Direct investments in equity securities of CIT or its subsidiaries | 0 | ||
International Equity | Retirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Policy target percentage in growth assets | 7.20% | ||
U S Equity | Retirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Policy target percentage in growth assets | 7.20% | ||
Global Equity | Retirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Policy target percentage in growth assets | 4.80% | ||
Other Fixed Income | Retirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Policy target percentage in growth assets | 4.80% |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | $ 425.8 | $ 414 | |
Interest cost | 12.2 | 15.8 | $ 14.7 |
Actuarial (gain) / loss | 21.5 | 26.5 | |
Benefits paid | (27.1) | (29.7) | |
Other | (1) | (0.8) | |
Benefit obligation at end of year | 431.4 | 425.8 | 414 |
Change in plan assets | |||
Fair value of plan assets at beginning of period | 379.8 | 333.4 | |
Actual return on plan assets | 50 | 70 | |
Employer contributions | 7 | 6.9 | |
Benefits paid | (27.2) | (29.7) | |
Other | (1) | (0.8) | |
Fair value of plan assets at end of period | 408.6 | 379.8 | 333.4 |
Funded status at end of year | (22.8) | (46) | |
Information for pension plans with a benefit obligation in excess of plan assets | |||
Projected benefit obligation | 78.4 | 425.8 | |
Accumulated benefit obligation | 78.4 | 425.8 | |
Fair value of plan assets | 379.8 | ||
Post-Retirement Benefits | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | 31.3 | 29.8 | |
Interest cost | 0.9 | 1.2 | 1.2 |
Actuarial (gain) / loss | 2.2 | 3.1 | |
Benefits paid | (3.3) | (3.9) | |
Other | 1 | 1.1 | |
Benefit obligation at end of year | 32.1 | 31.3 | $ 29.8 |
Change in plan assets | |||
Employer contributions | 2.3 | 2.8 | |
Benefits paid | (3.3) | (3.9) | |
Other | 1 | 1.1 | |
Funded status at end of year | (32.1) | (31.3) | |
Information for pension plans with a benefit obligation in excess of plan assets | |||
Projected benefit obligation | $ 32.1 | $ 31.3 |
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, 2020 | Dec. 31, 2019 |
Compensation And Retirement Disclosure [Abstract] | ||
Company assets related to non-qualified US executive retirement plan obligation not included in plan assets | $ 78.6 | $ 79.3 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Changes in Plan Assets and Benefit Obligations Recognized in OCI | |||
Net loss/(gain) | $ (31.7) | $ (53.3) | $ 42.2 |
Total recognized in OCI | (11.8) | (28.8) | 24.9 |
Retirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | 12.2 | 15.8 | 14.7 |
Expected return on plan assets | (18.2) | (16.7) | (18.9) |
Other | 1.5 | 2 | 1.3 |
Net periodic benefit cost (credit) | (4.5) | 1.1 | (2.9) |
Other Changes in Plan Assets and Benefit Obligations Recognized in OCI | |||
Net loss/(gain) | (10.3) | (26.8) | 26.2 |
Amortization, settlement or curtailment recognition | (1.5) | (2) | (1.3) |
Total recognized in OCI | (11.8) | (28.8) | 24.9 |
Total recognized in net periodic benefit cost and OCI | (16.3) | (27.7) | 22 |
Post-Retirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | 0.9 | 1.2 | 1.2 |
Other | (0.8) | (1.9) | (1) |
Net periodic benefit cost (credit) | 0.1 | (0.7) | 0.2 |
Other Changes in Plan Assets and Benefit Obligations Recognized in OCI | |||
Net loss/(gain) | 2.2 | 3.1 | (4.1) |
Amortization, settlement or curtailment recognition | 0.8 | 1.9 | 1 |
Total recognized in OCI | 3 | 5 | (3.1) |
Total recognized in net periodic benefit cost and OCI | $ 3.1 | $ 4.3 | $ (2.9) |
Retirement, Postretirement an_7
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |||
Asset (Gains)/Losses | $ (31.7) | $ (53.3) | $ 42.2 |
Discount Rate Decrease/(Increase) | 32.6 | 39 | (21.5) |
Interest Crediting Rate (Decrease)/Increase | (6.4) | (8.3) | 4.3 |
Other | (6.3) | (6.2) | (0.1) |
Total recognized in OCI | $ (11.8) | $ (28.8) | $ 24.9 |
Retirement, Postretirement an_8
Retirement, Postretirement and Other Benefit Plans (Weighted Average Assumptions Used in Measurement of Benefit Obligations) (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.21% | 3.00% |
Interest crediting rate | 1.00% | 1.75% |
Post-Retirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.25% | 3.00% |
Health care cost trend rate, Pre-65 | 5.60% | 5.80% |
Health care cost trend rate, Post-65 | 6.00% | 6.50% |
Ultimate health care cost trend rate | 4.50% | 4.50% |
Year ultimate reached | 2037 | 2037 |
Retirement, Postretirement an_9
Retirement, Postretirement and Other Benefit Plans (Weighted Average Assumptions Used to Determine Net Periodic Benefit Costs) (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.00% | 4.00% |
Expected long-term return on plan assets | 5.00% | 5.25% |
Interest crediting rate | 1.75% | 2.75% |
Post-Retirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.00% | 4.00% |
Retirement, Postretirement a_10
Retirement, Postretirement and Other Benefit Plans (Asset Fair Value Measurements) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at net asset value | $ 404.2 | $ 378.2 |
Total assets at fair value and net asset value | 408.6 | 379.8 |
Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 4.4 | 1.6 |
Common Collective Trust, measured at NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at net asset value | 404.2 | 378.2 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 4.4 | 1.6 |
Level 1 | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | $ 4.4 | $ 1.6 |
Retirement, Postretirement a_11
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, 2020USD ($) |
Retirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | $ 27.8 |
2022 | 26.5 |
2023 | 27.3 |
2024 | 26.3 |
2025 | 27.5 |
2026 – 2030 | 127 |
Post-Retirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | 2.4 |
2022 | 2.3 |
2023 | 2.2 |
2024 | 2.1 |
2025 | 2.1 |
2026 – 2030 | 9.5 |
Medicare Subsidy Receipts | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | 0.2 |
2022 | 0.1 |
2023 | 0.1 |
2024 | 0.1 |
2025 | 0.1 |
2026 – 2030 | $ 0.2 |
Retirement, Postretirement A_12
Retirement, Postretirement And Other Benefit Plans (Share-Based Compensation Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 29, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense related to equity-based awards | $ 32,700,000 | $ 44,200,000 | $ 38,800,000 | |
Compensation expense related to non-vested awards | $ 20,000,000 | |||
Compensation expense related to non-vested awards, period for recognition | 1 year 9 months 7 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 | $ 36,900,000 | $ 51,100,000 | $ 72,800,000 | |
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 | $ 32,100,000 | |||
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) | 198,069 | 64,078 | 61,722 | |
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) | 2,700,052 | 5,000,000 | ||
Number of options outstanding (in shares) | 2,123,831 |
Retirement, Postretirement a_13
Retirement, Postretirement and Other Benefit Plans (Summary of Restricted Stock and RSU Activity) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Stock-Settled Restricted Stock, RSUs and PSUs | ||
Number of Shares | ||
Unvested at beginning of period (in shares) | 1,806,252 | 1,901,266 |
Vested / unsettled awards at beginning of period (in shares) | 207,797 | 258,169 |
Forfeited/cancelled (in shares) | (103,781) | (75,343) |
Vested/settled award (in shares) | (923,492) | (1,051,114) |
Vested / unsettled awards (in shares) | (202,243) | (207,797) |
Unvested at end of period (in shares) | 1,921,588 | 1,806,252 |
Weighted Average Grant Date Value | ||
Unvested at beginning of period (in dollars per share) | $ 50.14 | $ 43.88 |
Vested / unsettled awards at beginning of period (in dollars per share) | 41.58 | 34.15 |
Forfeited/cancelled (in dollars per share) | 48.97 | 45.48 |
Vested/settled award (in dollars per share) | 45.17 | 37.89 |
Vested / settled awards (in dollars per share) | 51.06 | 41.58 |
Unvested at end of period (in dollars per share) | $ 48.18 | $ 50.14 |
Stock-Settled PSUs | ||
Number of Shares | ||
PSUs - granted to employees (in shares) | 191,624 | 178,075 |
PSUs - incremental for performance above 2012-14 targets (in shares) | (35,769) | (8,086) |
Weighted Average Grant Date Value | ||
PSUs - granted to employee (in dollars per share) | $ 49.77 | $ 53.42 |
PSUs - incremental for performance above 2012-14 targets (in dollars per share) | $ 41.84 | $ 32.75 |
Cash-Settled Restricted Stock, RSUs and PSUs | ||
Number of Shares | ||
Unvested at beginning of period (in shares) | 11,974 | 13,192 |
Vested/settled award (in shares) | (9,857) | (6,462) |
Unvested at end of period (in shares) | 28,236 | 11,974 |
Weighted Average Grant Date Value | ||
Unvested at beginning of period (in dollars per share) | $ 50.86 | $ 47.92 |
Vested/settled award (in dollars per share) | 50.37 | 44.97 |
Unvested at end of period (in dollars per share) | $ 17.62 | $ 50.86 |
Employees | Stock-Settled RSUs | ||
Number of Shares | ||
RSUs - granted (in shares) | 903,846 | 782,122 |
Weighted Average Grant Date Value | ||
RSUs - granted (in dollars per share) | $ 45.69 | $ 50.51 |
Director | Stock-Settled RSUs | ||
Number of Shares | ||
RSUs - granted (in shares) | 77,354 | 28,960 |
Weighted Average Grant Date Value | ||
RSUs - granted (in dollars per share) | $ 15 | $ 50.33 |
Director | Cash-Settled RSUs | ||
Number of Shares | ||
RSUs - granted (in shares) | 26,119 | 5,244 |
Weighted Average Grant Date Value | ||
RSUs - granted (in dollars per share) | $ 14.74 | $ 51.01 |
Commitments (Summary of Commitm
Commitments (Summary of Commitments) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments And Contingencies Disclosure [Abstract] | ||
Financing assets (excluding leases) - Due to Expire Within One Year | $ 2,813.4 | |
Financing assets (excluding leases) - Due to Expire After One Year | 4,894.9 | |
Financing assets (excluding leases) - Total Outstanding | 7,708.3 | $ 6,459.7 |
Standby letters of credit - Due to Expire Within One Year | 27.3 | |
Standby letters of credit - Due to Expire After One Year | 232.3 | |
Standby letters of credit - Total Outstanding | 259.6 | 199.6 |
Other letters of credit - Due to Expire Within One Year | 5.1 | |
Other letters of credit - Due to Expire After One Year | 3.9 | |
Other letters of credit - Total Outstanding | 9 | 6.7 |
Deferred purchase credit protection agreements - Due to Expire Within One Year | 1,929.4 | |
Deferred purchase credit protection agreements - Total Outstanding | 1,929.4 | 2,060.6 |
Lessor commitments - Due to Expire Within One Year | 628.3 | |
Lessor commitments - Total Outstanding | $ 628.3 | $ 813.7 |
Commitments (Narrative) (Detail
Commitments (Narrative) (Details) - Deferred Purchase Agreements - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments [Line Items] | ||
DPA, borrowings by client | $ 157.9 | $ 139.5 |
DPA credit protection provided to clients | 1,881.9 | 1,966.4 |
DPA credit line agreements net of deferred purchase agreement credit protection | $ 47.5 | $ 94.2 |
Maximum | ||
Commitments [Line Items] | ||
DPA credit line agreements, cancellation notice period | 90 days |
Contingencies (Narrative) (Deta
Contingencies (Narrative) (Details) - USD ($) | Oct. 15, 2019 | Dec. 31, 2020 |
Home Affordable Modification Program (HAMP) | ||
Contingencies [Line Items] | ||
Servicer incentives received | $ 93,000,000 | |
Maximum | ||
Contingencies [Line Items] | ||
Amount of losses in excess of established reserves and insurance related to those matters | $ 20,000,000 | |
Minimum | Home Affordable Modification Program (HAMP) | ||
Contingencies [Line Items] | ||
Litigation settlement, amount awarded from other party | $ 400,000,000 |
Certain Relationships And Rel_2
Certain Relationships And Related Transactions (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Related Party Transaction [Line Items] | |||
Investment in joint venture | [1] | $ 427 | $ 365.6 |
Other assets | $ 2,248.5 | 1,639.2 | |
CIT Northbridge | |||
Related Party Transaction [Line Items] | |||
Equity interest percentage | 20.00% | ||
Equity interest percentage owned by other investors | 80.00% | ||
Equity investment | $ 25.5 | 18.2 | |
Strategic Credit Partners Holdings LLC | |||
Related Party Transaction [Line Items] | |||
Equity interest percentage | 10.00% | ||
Investment in joint venture | $ 2 | 1.9 | |
Strategic Credit Partners Holdings LLC | Loans | |||
Related Party Transaction [Line Items] | |||
Loans sold in joint venture | 252.6 | ||
Investments In Non-Consolidated Entities | |||
Related Party Transaction [Line Items] | |||
Other assets | $ 427 | $ 365.6 | |
[1] | Included in this balance are LIHTC of $299.2 million and $263.3 million as of December 31, 2020 and December 31, 2019, respectively, that provide tax benefits to investors in the form of tax deductions from operating losses and tax credits. During 2020, 2019 and 2018, the Company recorded $27.4 million, $29.8 million and $29.1 million, respectively, in tax provisions under the proportional amortization method. During 2020, 2019 and 2018, the Company recognized total tax benefits of $35.9 million, $35.5 million and $34.2 million, respectively, which included tax credits of $26.7 million, $28.0 million, and $27.0 million recorded in income taxes. The Company is periodically required to provide additional financial support during the investment period. The Company’s liability for these unfunded commitments are included in Note 12 – Other Liabilities. Refer to Note 1 – Business and Summary of Significant Accounting Policy for additional information. See also Note 9 – Variable Interest Entities. |
Business Segment Information (N
Business Segment Information (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2020Segmentdivision | |
Segment Reporting Information [Line Items] | |
Number of operating segments | Segment | 2 |
Commercial Banking | |
Segment Reporting Information [Line Items] | |
Number of divisions | division | 4 |
Business Segment Information (S
Business Segment Information (Segment Pre-Tax Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||
Segment Pre-tax Income (Loss) | |||||||||||||||
Interest income | $ 415.2 | $ 423.3 | $ 446.9 | $ 513.6 | $ 481.4 | $ 503.4 | $ 515.5 | $ 516.5 | $ 1,799 | $ 2,016.8 | $ 1,890.4 | ||||
Interest expense (benefit) | 733.3 | 952 | 815.1 | ||||||||||||
Provision (benefit) for credit losses | 800.3 | 110.8 | 171 | ||||||||||||
Rental income on operating leases | 198.9 | 201.3 | 200.9 | 209.8 | 215.3 | 211.7 | 213 | 217.7 | 810.9 | 857.7 | 1,009 | ||||
Other non-interest income | 161.3 | 146 | 102.6 | 130.6 | 111.3 | 101 | 106.1 | 96.8 | 540.5 | 415.2 | 373.8 | ||||
Depreciation on operating lease equipment | 85.5 | 82.5 | 81.1 | 78.3 | 76.4 | 76 | 76.8 | 79.4 | 327.4 | 308.6 | 311.1 | ||||
Maintenance and other operating lease expenses | 54.2 | $ 48.6 | $ 56.1 | 53.6 | 40.7 | $ 41.9 | $ 48.3 | $ 49.8 | 212.5 | 180.7 | 230.4 | ||||
Operating expenses/(gain) loss on debt extinguishment and deposit redemption | 1,295.2 | 1,113.7 | 1,108.6 | ||||||||||||
Goodwill impairment | 140.4 | $ 344.7 | 485.1 | ||||||||||||
(Loss) income from continuing operations before (benefit) provision for income taxes | (703.4) | 623.9 | 637 | ||||||||||||
Select Period End Balances | |||||||||||||||
Total assets | 58,106.6 | 50,832.8 | 58,106.6 | 50,832.8 | 48,537.4 | ||||||||||
Loans | 36,144.6 | 30,998.9 | 36,144.6 | 30,998.9 | 30,795.4 | ||||||||||
Credit balances of factoring clients | (1,719.9) | (1,176.2) | (1,719.9) | (1,176.2) | (1,674.4) | ||||||||||
Assets held for sale | 721.2 | 32.1 | 721.2 | 32.1 | 88.4 | ||||||||||
Operating lease equipment, net | 7,836.6 | [1] | 7,319.7 | [1] | 7,836.6 | [1] | 7,319.7 | [1] | 6,970.6 | ||||||
Corporate | |||||||||||||||
Segment Pre-tax Income (Loss) | |||||||||||||||
Interest income | 125.9 | 226.2 | 218.5 | ||||||||||||
Interest expense (benefit) | 260.8 | 319 | 242.3 | ||||||||||||
Other non-interest income | 105.2 | 49.8 | 18 | ||||||||||||
Operating expenses/(gain) loss on debt extinguishment and deposit redemption | 105.8 | 67.2 | 46.4 | ||||||||||||
(Loss) income from continuing operations before (benefit) provision for income taxes | (135.5) | (110.2) | (52.2) | ||||||||||||
Select Period End Balances | |||||||||||||||
Total assets | 12,392.8 | 11,311.1 | 12,392.8 | 11,311.1 | 9,624.9 | ||||||||||
Assets held for sale | 0.1 | 0.1 | 20.2 | ||||||||||||
Commercial Banking | |||||||||||||||
Segment Pre-tax Income (Loss) | |||||||||||||||
Provision (benefit) for credit losses | 834.2 | 117.3 | |||||||||||||
Goodwill impairment | 437 | ||||||||||||||
Commercial Banking | Operating Segments | |||||||||||||||
Segment Pre-tax Income (Loss) | |||||||||||||||
Interest income | 1,299.4 | 1,425.7 | 1,333 | ||||||||||||
Interest expense (benefit) | 501.5 | 758.3 | 716.3 | ||||||||||||
Provision (benefit) for credit losses | 834.2 | 117.3 | 167.1 | ||||||||||||
Rental income on operating leases | 810.9 | 857.7 | 1,009 | ||||||||||||
Other non-interest income | 359.2 | 331.6 | 320.8 | ||||||||||||
Depreciation on operating lease equipment | 327.4 | 308.6 | 311.1 | ||||||||||||
Maintenance and other operating lease expenses | 212.5 | 180.7 | 230.4 | ||||||||||||
Operating expenses/(gain) loss on debt extinguishment and deposit redemption | 802.8 | 701.5 | 692.9 | ||||||||||||
Goodwill impairment | 436.9 | ||||||||||||||
(Loss) income from continuing operations before (benefit) provision for income taxes | (645.8) | 548.6 | 545 | ||||||||||||
Select Period End Balances | |||||||||||||||
Total assets | 37,884.1 | 32,616.7 | 37,884.1 | 32,616.7 | 31,917 | ||||||||||
Loans | 28,636.5 | 24,393.4 | 28,636.5 | 24,393.4 | 24,263.4 | ||||||||||
Credit balances of factoring clients | (1,719.9) | (1,176.2) | (1,719.9) | (1,176.2) | (1,674.4) | ||||||||||
Assets held for sale | 702.4 | 23.1 | 702.4 | 23.1 | 64.3 | ||||||||||
Operating lease equipment, net | 7,836.6 | 7,319.7 | 7,836.6 | 7,319.7 | 6,970.6 | ||||||||||
Consumer Banking | |||||||||||||||
Segment Pre-tax Income (Loss) | |||||||||||||||
Provision (benefit) for credit losses | (33.9) | (6.5) | |||||||||||||
Goodwill impairment | 48.1 | ||||||||||||||
Consumer Banking | Operating Segments | |||||||||||||||
Segment Pre-tax Income (Loss) | |||||||||||||||
Interest income | 373.7 | 364.9 | 338.9 | ||||||||||||
Interest expense (benefit) | (29) | (125.3) | (143.5) | ||||||||||||
Provision (benefit) for credit losses | (33.9) | (6.5) | 3.9 | ||||||||||||
Other non-interest income | 76.1 | 33.8 | 35 | ||||||||||||
Operating expenses/(gain) loss on debt extinguishment and deposit redemption | 386.6 | 345 | 369.3 | ||||||||||||
Goodwill impairment | 48.2 | ||||||||||||||
(Loss) income from continuing operations before (benefit) provision for income taxes | 77.9 | 185.5 | 144.2 | ||||||||||||
Select Period End Balances | |||||||||||||||
Total assets | 7,829.7 | 6,905 | 7,829.7 | 6,905 | 6,995.5 | ||||||||||
Loans | 7,508.1 | 6,605.5 | 7,508.1 | 6,605.5 | 6,532 | ||||||||||
Assets held for sale | $ 18.8 | $ 8.9 | $ 18.8 | $ 8.9 | $ 3.9 | ||||||||||
[1] | Includes off-lease Rail equipment of $1,110.2 million and $519.1 million at December 31, 2020 and 2019, respectively. |
Business Segment Information (G
Business Segment Information (Geographic Region) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Total Assets | $ 58,106.6 | $ 50,832.8 | $ 48,537.4 |
Total Revenue from Continuing Operations | 3,150.4 | 3,289.7 | 3,273.2 |
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes | (703.4) | 623.9 | 637 |
Income (Loss) from Continuing Operations | (615.3) | 529.4 | 472.1 |
Assets of discontinued operations | 0 | 0 | 249.8 |
U.S. | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 57,291.9 | 50,044.7 | 47,676.3 |
Total Revenue from Continuing Operations | 3,062.9 | 3,242.2 | 3,080.7 |
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes | (759.2) | 609.2 | 471.4 |
Income (Loss) from Continuing Operations | (668.4) | 452.9 | 344.7 |
Non-U.S. operations | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 814.7 | 788.1 | 861.1 |
Total Revenue from Continuing Operations | 87.5 | 47.5 | 192.5 |
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes | 55.8 | 14.7 | 165.6 |
Income (Loss) from Continuing Operations | $ 53.1 | $ 76.5 | $ 127.4 |
Goodwill And Intangible Asset_2
Goodwill And Intangible Assets (Summary of Goodwill) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | |
Finite Lived Intangible Assets [Line Items] | |||
Beginning Balance | $ 369.9 | $ 369.9 | |
Additions | 115.2 | ||
Impairments | $ (140.4) | (344.7) | (485.1) |
Commercial Banking | |||
Finite Lived Intangible Assets [Line Items] | |||
Beginning Balance | 326.7 | 326.7 | |
Additions | 110.3 | ||
Impairments | (437) | ||
Consumer Banking | |||
Finite Lived Intangible Assets [Line Items] | |||
Beginning Balance | $ 43.2 | 43.2 | |
Additions | 4.9 | ||
Impairments | $ (48.1) |
Goodwill And Intangible Asset_3
Goodwill And Intangible Assets (Narrative) (Details) $ in Millions | Jan. 01, 2020USD ($) | Aug. 05, 2015USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | ||||||||
Goodwill impairment | $ 140.4 | $ 344.7 | $ 485.1 | |||||
Goodwill | $ 369.9 | $ 369.9 | ||||||
Intangible assets acquired | 102.6 | |||||||
Accumulated amortization | 142.6 | 142.6 | 116.3 | |||||
Projected amortization for 2021 | 32.8 | 32.8 | ||||||
Projected amortization for 2022 | 24.1 | 24.1 | ||||||
Projected amortization for 2023 | 13.4 | 13.4 | ||||||
Projected amortization for 2024 | 13.3 | 13.3 | ||||||
Projected amortization for 2025 | 12.1 | 12.1 | ||||||
Core deposit intangibles | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets acquired | 96.1 | |||||||
Accumulated amortization | $ 107.4 | $ 107.4 | 79.7 | |||||
Maximum | Core deposit intangibles | ||||||||
Business Acquisition [Line Items] | ||||||||
Estimated useful life | 7 years | |||||||
Long-Term Growth Rate | Reporting Units | ||||||||
Business Acquisition [Line Items] | ||||||||
Fair value input rate | 3 | 3 | ||||||
Commercial Banking | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill impairment | $ 437 | |||||||
Goodwill | 326.7 | 326.7 | ||||||
Consumer Banking | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill impairment | $ 48.1 | |||||||
Goodwill | $ 43.2 | $ 43.2 | ||||||
Interim Impairment Test | Discount Rate | Reporting Units | Minimum | ||||||||
Business Acquisition [Line Items] | ||||||||
Fair value input rate | 10.25 | 10.25 | ||||||
Interim Impairment Test | Discount Rate | Reporting Units | Maximum | ||||||||
Business Acquisition [Line Items] | ||||||||
Fair value input rate | 11.25 | 11.25 | ||||||
Interim Impairment Test | Control Premium | Reporting Units | ||||||||
Business Acquisition [Line Items] | ||||||||
Fair value input rate | 40 | 40 | ||||||
Annual Impairment Test | Discount Rate | Reporting Units | Minimum | ||||||||
Business Acquisition [Line Items] | ||||||||
Fair value input rate | 11 | 11 | ||||||
Annual Impairment Test | Discount Rate | Reporting Units | Maximum | ||||||||
Business Acquisition [Line Items] | ||||||||
Fair value input rate | 13 | 13 | ||||||
Annual Impairment Test | Control Premium | Reporting Units | ||||||||
Business Acquisition [Line Items] | ||||||||
Fair value input rate | 25 | 25 | ||||||
OneWest Bank | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill impairment | $ 319.4 | |||||||
OneWest Bank | Customer Relationships and Trade Names | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets acquired | $ 102.6 | |||||||
MOB | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 115.2 | $ 115.2 | ||||||
Intangible assets acquired | 102.6 | |||||||
MOB | Core deposit intangibles | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets acquired | $ 96.1 | |||||||
Estimated useful life | 10 years | |||||||
MOB | Original Purchase Price | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 121.6 | |||||||
MOB | Original Purchase Price | Commercial Banking | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 116.4 | |||||||
MOB | Original Purchase Price | Consumer Banking | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 5.2 | |||||||
MOB | Measurement Period Adjustment | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ (6.4) | 6.4 | ||||||
MOB | Measurement Period Adjustment | Commercial Banking | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 6.1 | |||||||
MOB | Measurement Period Adjustment | Consumer Banking | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 0.3 | |||||||
Equipment Finance | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill impairment | 247 | |||||||
Commercial Services | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill impairment | 8.6 | |||||||
Commercial Finance | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill impairment | $ 80 | 159.9 | ||||||
Commercial Finance | MOB | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 80 | 80 | ||||||
Real Estate Finance | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill impairment | 30.3 | 141.6 | ||||||
Real Estate Finance | MOB | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 30.3 | 30.3 | ||||||
Consumer Banking | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill impairment | 4.9 | $ 43.2 | ||||||
Consumer Banking | MOB | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 4.9 | $ 4.9 | ||||||
Rail | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill impairment | $ 25.2 |
Goodwill And Intangible Asset_4
Goodwill And Intangible Assets (Summary of Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | $ 277.5 | $ 182.3 | |
Accumulated Amortization | (142.6) | (116.3) | |
Net Carrying Amount | 134.9 | 66 | $ 89.2 |
Core deposit intangibles | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | 222.4 | 126.3 | |
Accumulated Amortization | (107.4) | (79.7) | |
Net Carrying Amount | 115 | 46.6 | 64.6 |
Trade names | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | 27.7 | 24.7 | |
Accumulated Amortization | (15.9) | (12.7) | |
Net Carrying Amount | 11.8 | 12 | 14.6 |
Customer relationships | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | 27.4 | 23.9 | |
Accumulated Amortization | (19.3) | (16.2) | |
Net Carrying Amount | $ 8.1 | 7.7 | 10.3 |
Other | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | 7.4 | ||
Accumulated Amortization | (7.7) | ||
Intangible Assets, Rentals Below Current Market Rates | $ (0.3) | $ (0.3) |
Goodwill And Intangible Asset_5
Goodwill And Intangible Assets (Summary of Intangible Assets Rollforward) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Intangible Assets, Beginning Balance | $ 66 | $ 89.2 |
Additions | 102.6 | |
Amortization | (33.7) | (23.2) |
Intangible Assets, Ending Balance | 134.9 | 66 |
Core deposit intangibles | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Intangible Assets, Beginning Balance | 46.6 | 64.6 |
Additions | 96.1 | |
Amortization | (27.7) | (18) |
Intangible Assets, Ending Balance | 115 | 46.6 |
Trade names | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Intangible Assets, Beginning Balance | 12 | 14.6 |
Additions | 3 | |
Amortization | (3.2) | (2.6) |
Intangible Assets, Ending Balance | 11.8 | 12 |
Customer relationships | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Intangible Assets, Beginning Balance | 7.7 | 10.3 |
Additions | 3.5 | |
Amortization | (3.1) | (2.6) |
Intangible Assets, Ending Balance | 8.1 | 7.7 |
Other | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Intangible Assets, Rentals Below Current Market Rates, Beginning Balance | (0.3) | (0.3) |
Intangible Assets Amortization, Rentals Below Current Market Rates | $ 0.3 | |
Intangible Assets, Rentals Below Current Market Rates, Ending Balance | $ (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, 2020USD ($)employee | Dec. 31, 2019USD ($)employee | |
Number of Employees | ||
Beginning balance | employee | 133 | 220 |
Additions and adjustments | employee | 431 | 36 |
Utilization | employee | (171) | (123) |
Ending balance | employee | 393 | 133 |
Liability | ||
Beginning balance | $ | $ 17 | $ 13.8 |
Additions and adjustments | $ | 33.6 | 15.1 |
Utilization | $ | (17.2) | (11.9) |
Ending balance | $ | $ 33.4 | $ 17 |
Severance Liabilities (Narrativ
Severance Liabilities (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost And Reserve [Line Items] | ||
Provisions for severance | $ 37.2 | $ 15.1 |
Severance | ||
Restructuring Cost And Reserve [Line Items] | ||
Provisions for severance | $ 33.4 | $ 15.1 |
Parent Company Financial Stat_3
Parent Company Financial Statements (Condensed Parent Company Only Balance Sheets) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||||
Cash and deposits | $ 174.6 | $ 990.1 | $ 198.8 | |
Goodwill | 369.9 | 369.9 | ||
Other assets | 2,248.5 | 1,639.2 | ||
Total Assets | 58,106.6 | 50,832.8 | 48,537.4 | |
Liabilities and Equity: | ||||
Borrowings | 5,837.3 | 6,473.4 | ||
Other liabilities | 1,754.9 | 1,704.7 | ||
Total Liabilities | 52,383.7 | 44,493.8 | ||
Total Stockholders' Equity | 5,722.9 | 6,339 | $ 5,946.6 | $ 7,320 |
Total Liabilities and Equity | 58,106.6 | 50,832.8 | ||
CIT Group Inc. | ||||
Assets: | ||||
Cash and deposits | 15.5 | 15.3 | ||
Cash held at bank subsidiary | 962.8 | 361.5 | ||
Receivables from nonbank subsidiaries | 2,543.4 | 2,401.1 | ||
Receivables from bank subsidiaries | 556.5 | 654.8 | ||
Investment in nonbank subsidiaries | 898.3 | 1,155.2 | ||
Investment in bank subsidiaries | 4,943 | 5,266.3 | ||
Goodwill | 46.9 | |||
Other assets | 775.6 | 872.7 | ||
Total Assets | 10,695.1 | 10,773.8 | ||
Liabilities and Equity: | ||||
Borrowings | 4,418.2 | 3,916.3 | ||
Liabilities to nonbank subsidiaries | 219.1 | 158.6 | ||
Liabilities to bank subsidiaries | 12.2 | 5 | ||
Other liabilities | 322.7 | 354.9 | ||
Total Liabilities | 4,972.2 | 4,434.8 | ||
Total Stockholders' Equity | 5,722.9 | 6,339 | ||
Total Liabilities and Equity | $ 10,695.1 | $ 10,773.8 |
Parent Company Financial Stat_4
Parent Company Financial Statements (Condensed Parent Company Only Statements Of Operations And Comprehensive Income ) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income | |||||||||||
Interest income from nonbank subsidiaries | $ 415.2 | $ 423.3 | $ 446.9 | $ 513.6 | $ 481.4 | $ 503.4 | $ 515.5 | $ 516.5 | $ 1,799 | $ 2,016.8 | $ 1,890.4 |
Interest and dividends on interest bearing deposits and investments | 131.2 | 233.5 | 218.6 | ||||||||
Expenses | |||||||||||
Interest expense | 139.6 | 165.5 | 202.5 | 225.7 | 229.8 | 243.9 | 242.7 | 235.6 | 733.3 | 952 | 815.1 |
Total non-interest expenses | 2,320.2 | 1,603 | 1,650.1 | ||||||||
(Loss) income from continuing operations before (benefit) provision for income taxes | (703.4) | 623.9 | 637 | ||||||||
Benefit for income taxes | 27.9 | 29.5 | (73.2) | (72.3) | 49.3 | (26) | 33.4 | 37.8 | (88.1) | 94.5 | 164.9 |
Net (loss) income | $ 8.6 | $ 85.7 | $ (85.3) | $ (624.3) | $ 130.6 | $ 142.8 | $ 137.6 | $ 118.9 | (615.3) | 529.9 | 447.1 |
Other comprehensive income (loss), net of tax | 87.8 | 126.2 | (91.3) | ||||||||
CIT Group Inc. | |||||||||||
Income | |||||||||||
Interest income from nonbank subsidiaries | 99 | 123.4 | 113.4 | ||||||||
Interest income from bank subsidiaries | 14.4 | 16.2 | 19.2 | ||||||||
Interest and dividends on interest bearing deposits and investments | 1.7 | 4.5 | |||||||||
Dividends from nonbank subsidiaries | 271 | 25 | 31 | ||||||||
Dividends from bank subsidiaries | 356 | 218.6 | |||||||||
Other non-interest income from subsidiaries | 89 | 71.5 | 61.8 | ||||||||
Other non-interest income | 15 | 39.7 | 51.6 | ||||||||
Total income | 488.4 | 633.5 | 500.1 | ||||||||
Expenses | |||||||||||
Interest expense | 208.8 | 202.8 | 222 | ||||||||
Interest expense on liabilities to subsidiaries | 6.6 | 15.4 | 40.5 | ||||||||
Other non-interest expenses | 204.1 | 156.5 | 189.9 | ||||||||
Total non-interest expenses | 419.5 | 374.7 | 452.4 | ||||||||
(Loss) income from continuing operations before (benefit) provision for income taxes | 68.9 | 258.8 | 47.7 | ||||||||
Benefit for income taxes | (42.6) | (160.9) | (76.5) | ||||||||
Income before equity in undistributed net income of subsidiaries | 111.5 | 419.7 | 124.2 | ||||||||
Equity in undistributed net (loss) income of bank subsidiaries | (449.7) | 78.4 | 213.6 | ||||||||
Equity in undistributed net (loss) income of nonbank subsidiaries | (277.1) | 31.8 | 109.3 | ||||||||
Net (loss) income | (615.3) | 529.9 | 447.1 | ||||||||
Other comprehensive income (loss), net of tax | 87.8 | 126.2 | (91.3) | ||||||||
Comprehensive (loss) income | $ (527.5) | $ 656.1 | $ 355.8 |
Parent Company Financial Stat_5
Parent Company Financial Statements (Condensed Parent Company Only Statements Of Cash Flows) (Details) - USD ($) $ in Thousands | Nov. 13, 2019 | May 31, 2017 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Cash Flows from Operations | |||||||||||||
Net (loss) income | $ 8,600 | $ 85,700 | $ (85,300) | $ (624,300) | $ 130,600 | $ 142,800 | $ 137,600 | $ 118,900 | $ (615,300) | $ 529,900 | $ 447,100 | ||
Other operating activities, net | 83,000 | 78,200 | 187,100 | ||||||||||
Net cash flows provided by operations | 480,400 | 927,200 | 982,500 | ||||||||||
Cash Flows from Investing Activities | |||||||||||||
Other investing activities | (46,300) | 22,900 | 44,000 | ||||||||||
Net cash flows provided by (used in) investing activities | 1,189,100 | (1,947,200) | 43,800 | ||||||||||
Cash Flows from Financing Activities | |||||||||||||
Proceeds from the issuance of term debt | 2,207,500 | 2,694,300 | 4,608,900 | ||||||||||
Repayments of term debt | (3,129,100) | (4,365,100) | (5,395,900) | ||||||||||
Net proceeds from issuance of preferred stock | $ 195,100 | $ 318,000 | 195,100 | ||||||||||
Repurchase of common stock | (340,900) | (1,626,700) | |||||||||||
Dividends paid | (171,500) | (146,700) | (115,900) | ||||||||||
Other financing activities, net | (199,800) | (26,700) | (92,100) | ||||||||||
Net cash flows (used in) provided by financing activities | (345,700) | 1,908,100 | (942,100) | ||||||||||
CIT Group Inc. | |||||||||||||
Cash Flows from Operations | |||||||||||||
Net (loss) income | (615,300) | 529,900 | 447,100 | ||||||||||
Equity in undistributed loss (earnings) of subsidiaries | 726,800 | (110,200) | (322,900) | ||||||||||
Other operating activities, net | 171,100 | (53,000) | 1,411,100 | ||||||||||
Net cash flows provided by operations | 282,600 | 366,700 | 1,535,300 | ||||||||||
Cash Flows from Investing Activities | |||||||||||||
(Increase) decrease in investments in and advances to subsidiaries | (45,000) | (250,700) | 502,500 | ||||||||||
Decrease in investment securities and securities purchased under agreements to resell | 100,000 | 50,000 | |||||||||||
Other investing activities | (17,100) | (16,900) | (1,800) | ||||||||||
Net cash flows provided by (used in) investing activities | (62,100) | (167,600) | 550,700 | ||||||||||
Cash Flows from Financing Activities | |||||||||||||
Proceeds from the issuance of term debt | 500,000 | 98,600 | 1,879,500 | ||||||||||
Repayments of term debt | (1,854,800) | ||||||||||||
Net proceeds from issuance of preferred stock | 195,100 | ||||||||||||
Repurchase of common stock | (340,900) | (1,626,700) | |||||||||||
Dividends paid | (171,500) | (146,700) | (115,900) | ||||||||||
Net change in advances from subsidiaries | 63,500 | (303,000) | (376,000) | ||||||||||
Other financing activities, net | (11,000) | (22,600) | (71,700) | ||||||||||
Net cash flows (used in) provided by financing activities | 381,000 | (519,500) | (2,165,600) | ||||||||||
Net increase (decrease) in cash and cash equivalents | 601,500 | (320,400) | (79,600) | ||||||||||
Cash and cash equivalents, beginning of period | $ 376,800 | $ 697,200 | 376,800 | 697,200 | 776,800 | ||||||||
Cash and cash equivalents, end of period | $ 978,300 | $ 376,800 | $ 978,300 | $ 376,800 | $ 697,200 |
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, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Quarterly Financial Data [Abstract] | ||||||||||||||
Interest income | $ 415.2 | $ 423.3 | $ 446.9 | $ 513.6 | $ 481.4 | $ 503.4 | $ 515.5 | $ 516.5 | $ 1,799 | $ 2,016.8 | $ 1,890.4 | |||
Interest expense | 139.6 | 165.5 | 202.5 | 225.7 | 229.8 | 243.9 | 242.7 | 235.6 | 733.3 | 952 | 815.1 | |||
Provision for credit losses | (0.5) | 63.3 | 223.6 | 513.9 | 22.6 | 26.6 | 28.6 | 33 | ||||||
Rental income on operating leases | 198.9 | 201.3 | 200.9 | 209.8 | 215.3 | 211.7 | 213 | 217.7 | 810.9 | 857.7 | 1,009 | |||
Other non-interest income | 161.3 | 146 | 102.6 | 130.6 | 111.3 | 101 | 106.1 | 96.8 | 540.5 | 415.2 | 373.8 | |||
Depreciation on operating lease equipment | 85.5 | 82.5 | 81.1 | 78.3 | 76.4 | 76 | 76.8 | 79.4 | 327.4 | 308.6 | 311.1 | |||
Maintenance and other operating lease expenses | 54.2 | 48.6 | 56.1 | 53.6 | 40.7 | 41.9 | 48.3 | 49.8 | 212.5 | 180.7 | 230.4 | |||
Operating expenses | 319.6 | 295.5 | 360.4 | 334.4 | 258.5 | 310.8 | 267.8 | 276.1 | 1,309.9 | 1,113.2 | 1,070 | |||
Goodwill impairment | 140.4 | 344.7 | 485.1 | |||||||||||
(Gain) loss on debt extinguishments and deposit redemptions | 0.1 | (14.8) | 0.1 | 0.1 | 0.2 | 0.1 | (14.7) | 0.5 | 38.6 | |||||
(Benefit) provision for income taxes | 27.9 | 29.5 | (73.2) | (72.3) | 49.3 | (26) | 33.4 | 37.8 | (88.1) | 94.5 | 164.9 | |||
Income (loss) from discontinued operations, net of taxes | 0.8 | (0.3) | 0.5 | (25) | ||||||||||
Net (loss) income | 8.6 | 85.7 | (85.3) | (624.3) | 130.6 | 142.8 | 137.6 | 118.9 | (615.3) | 529.9 | 447.1 | |||
Net (loss) income applicable to common shareholders | (3.6) | 82.9 | (97.6) | (628.1) | 121.1 | 142.8 | 128.2 | 118.9 | (646.4) | 511 | 428.2 | |||
(Loss) income from continuing operations applicable to common shareholders | $ (3.6) | $ 82.9 | $ (97.6) | $ (628.1) | $ 121.1 | $ 142.8 | $ 127.4 | $ 119.2 | $ (646.4) | $ 510.5 | $ 453.2 | |||
Net (loss) income per diluted share | $ (0.04) | $ 0.84 | $ (0.99) | $ (6.40) | $ 1.27 | $ 1.50 | $ 1.33 | $ 1.18 | $ (6.57) | [1] | $ 5.27 | [1] | $ 3.61 | [1] |
[1] | Due to the net loss for the year ended December 31, 2020, the diluted earnings per share calculation excluded an insignificant amount of weighted average restricted shares, performance shares, and options, as they were anti-dilutive. The basic weighted average shares outstanding and net loss for the year ended December 31, 2020 were utilized for the diluted earnings per share calculation. |