Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 14, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | CIT GROUP INC | ||
Entity Central Index Key | 1,171,825 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 130,769,978 | ||
Entity Public Float | $ 6,578,164,870 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Assets: | |||
Cash and deposits | [1] | $ 278.6 | $ 822.1 |
Cash and interest bearing deposits, restricted | 42.9 | 176.1 | |
Cash and interest bearing deposits | [1] | 1,440.1 | 5,608.5 |
Securities purchased under agreement to resell | 150 | 0 | |
Securities purchased under agreement to resell | 6,469.9 | 4,491.1 | |
Assets held for sale | [1] | 2,263.1 | 636 |
Loans (see Note 10 for amounts pledged) | 29,113.9 | 29,535.9 | |
Allowance for loan losses | (431.1) | (432.6) | |
Total loans, net of allowance for loan losses | [1] | 28,682.8 | 29,103.3 |
Operating lease equipment, net (see Note 10 for amounts pledged) | [1] | 6,738.9 | 7,486.1 |
Goodwill | 369.9 | 685.4 | |
Bank owned life insurance | 788.6 | 0 | |
Other assets, including $68.7 and $111.6 at December 31, 2017 and 2016, respectively, at fair value | 1,595.5 | 2,117 | |
Assets of discontinued operations | 501.3 | 13,220.7 | |
Total Assets | 49,278.7 | 64,170.2 | |
Liabilities | |||
Deposits | 29,569.3 | 32,304.3 | |
Credit balances of factoring clients | 1,468.6 | 1,292 | |
Other liabilities, including $198.1 and $177.9 at December 31, 2017 and 2016, respectively, at fair value | 1,437.1 | 1,897.6 | |
Borrowings, including $1,626.3 and $2,321.7 contractually due within twelve months at December 31, 2017 and 2016, respectively | 8,974.4 | 14,935.5 | |
Liabilities of discontinued operations | 509.3 | 3,737.7 | |
Total Liabilities | 41,958.7 | 54,167.1 | |
Stockholders' Equity | |||
Preferred Stock | 325 | 0 | |
Common stock: $0.01 par value, 600,000,000 authorized, Issued: 207,628,491 and 206,182,213 at December 31, 2017 and December 31, 2016, respectively, Outstanding: 131,352,924 and 202,087,672 at December 31, 2017 and December 31, 2016, respectively | 2.1 | 2.1 | |
Paid-in capital | 8,798.1 | 8,765.8 | |
Retained earnings | 1,906.5 | 1,553 | |
Accumulated other comprehensive loss | (86.5) | (140.1) | |
Treasury stock: 76,275,567 and 4,094,541 shares at December 31, 2017 and 2016 at cost, respectively | (3,625.2) | (178.1) | |
Total Common Stockholders' Equity | 6,995 | 10,002.7 | |
Noncontrolling minority interests | 0 | 0.4 | |
Total Equity | 7,320 | 10,003.1 | |
Total Liabilities and Equity | 49,278.7 | 64,170.2 | |
Variable Interest Entities | |||
Assets: | |||
Cash and interest bearing deposits, restricted | 80.4 | 99.9 | |
Total loans, net of allowance for loan losses | 119.1 | 300.5 | |
Operating lease equipment, net (see Note 10 for amounts pledged) | 763.3 | 775.8 | |
Assets of discontinued operations | 0 | 2,321.7 | |
Total Assets | 962.8 | 3,497.9 | |
Liabilities | |||
Beneficial interests issued by consolidated VIEs (classified as long-term borrowings) | 566.6 | 770 | |
Liabilities of discontinued operations | 0 | 1,204.6 | |
Total Liabilities | $ 566.6 | $ 1,974.6 | |
[1] | The following table presents information on assets and liabilities related to Variable Interest Entities (VIEs) that are consolidated by the Company. The difference between VIE total assets and total liabilities represents the Company's interests in those entities, which were eliminated in consolidation. The assets of the consolidated VIEs will be used to settle the liabilities of those entities and, except for the Company's interest in the VIEs, are not available to the creditors of CIT or any affiliates of CIT. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Cash and interest bearing deposits, restricted | $ 42.9 | $ 176.1 |
Restricted interest-bearing deposits | 81.8 | 102.8 |
Securities carried at fair value with changes recorded in net income | 0.4 | 283.5 |
Other assets at fair value | 68.7 | 111.6 |
Other liabilities at fair value | 198.1 | 177.9 |
Borrowings contractually due within twelve months | $ 1,626.3 | $ 2,321.7 |
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) | 207,628,491 | 206,182,213 |
Common stock, shares outstanding (in shares) | 131,352,924 | 202,087,672 |
Treasury stock, shares at cost (in shares) | 76,275,567 | 4,094,541 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest income | |||
Interest and fees on loans | $ 1,638.1 | $ 1,779.6 | $ 1,374 |
Other interest and dividends | 197.5 | 131.9 | 71.2 |
Interest income | 1,835.6 | 1,911.5 | 1,445.2 |
Interest expense | |||
Interest on borrowings | 344.4 | 358.4 | 401.3 |
Interest on deposits | 373.3 | 394.8 | 330.1 |
Interest expense | 717.7 | 753.2 | 731.4 |
Net interest revenue | 1,117.9 | 1,158.3 | 713.8 |
Provision for credit losses | 114.6 | 194.7 | 158.6 |
Net interest revenue, after credit provision | 1,003.3 | 963.6 | 555.2 |
Non-interest income | |||
Rental income on operating leases | 1,007.4 | 1,031.6 | 1,018.1 |
Other non-interest income | 364.2 | 150.6 | 149.6 |
Total non-interest income | 1,371.6 | 1,182.2 | 1,167.7 |
Total revenue, net of interest expense and credit provision | 2,374.9 | 2,145.8 | 1,722.9 |
Non-interest expenses | |||
Depreciation on operating lease equipment | 296.3 | 261.1 | 229.2 |
Maintenance and other operating lease expenses | 222.9 | 213.6 | 185.1 |
Operating expenses | 1,188.5 | 1,283.5 | 1,121.1 |
Goodwill impairment | 255.6 | 354.2 | 0 |
Loss on debt extinguishment and deposit redemption | 220 | 12.5 | 1.5 |
Total non-interest expenses | 2,183.3 | 2,124.9 | 1,536.9 |
Income from continuing operations before (benefit) provision for income taxes | 191.6 | 20.9 | 186 |
(Benefit) provision for income taxes | (67.8) | 203.5 | (538) |
Income (loss) from continuing operations before attribution of noncontrolling interests | 259.4 | (182.6) | 724 |
Loss attributable to noncontrolling interests, after tax | 0 | 0 | 0.1 |
Income (loss) from continuing operations | 259.4 | (182.6) | 724.1 |
Discontinued operations | |||
Income (loss) from discontinued operations, net of taxes | 90.2 | (665.4) | 310 |
Gain on sale of discontinued operations, net of taxes | 118.6 | 0 | 0 |
Total income (loss) from discontinued operations, net of taxes | 208.8 | (665.4) | 310 |
Net income (loss) | 468.2 | (848) | 1,034.1 |
Preferred dividends | 9.8 | 0 | 0 |
Net income (loss) available to common shareholders | 458.4 | (848) | 1,034.1 |
Income (loss) from continuing operations available to common shareholders | $ 249.6 | $ (182.6) | $ 724.1 |
Basic income per common share | |||
(Loss) income from continuing operations (in dollars per share) | $ 1.54 | $ (0.90) | $ 3.90 |
(Loss) income from discontinued operations, net of taxes (in dollars per share) | 1.28 | (3.30) | 1.67 |
(Loss) income from discontinued operations, net of taxes (in dollars per share) | 2.82 | (4.20) | 5.57 |
Diluted income per common share | |||
(Loss) income from continuing operations (in dollars per share) | 1.52 | (0.90) | 3.89 |
(Loss) income from discontinued operations, net of taxes (in dollars per share) | 1.28 | (3.30) | 1.66 |
Diluted (loss) income per common share (in dollars per share) | $ 2.80 | $ (4.20) | $ 5.55 |
Average number of common shares — (thousands) | |||
Basic (in shares) | 162,290 | 201,850 | 185,500 |
Diluted (in shares) | 163,950 | 201,850 | 186,388 |
Dividends declared per common share (in dollars per share) | $ 0.61 | $ 0.60 | $ 0.60 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Net income (loss) before attribution of noncontrolling interests | $ 468.2 | $ (848) | $ 1,034 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | 53.4 | 4.3 | 9.7 |
Net unrealized gains (losses) on available for sale securities | (10.6) | (6.3) | (7.1) |
Changes in benefit plans net gain (loss) and prior service (cost)/credit | 10.8 | 4 | (10.8) |
Other comprehensive income (loss), net of tax | 53.6 | 2 | (8.2) |
Comprehensive income (loss) before noncontrolling interests | 521.8 | (846) | 1,025.8 |
Comprehensive loss attributable to noncontrolling interests | 0 | 0 | 0.1 |
Comprehensive income (loss) | $ 521.8 | $ (846) | $ 1,025.9 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Non-controlling Minority Interests |
Beginning balance at Dec. 31, 2014 | $ 9,052.6 | $ 0 | $ 2 | $ 8,603.6 | $ 1,604.8 | $ (133.9) | $ (1,018.5) | $ (5.4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 1,034 | 1,034.1 | (0.1) | |||||
Other comprehensive income (loss), net of tax | (8.2) | (8.2) | ||||||
Dividends paid | (114.9) | (114.9) | ||||||
Amortization of restricted stock, stock option, and performance shares and other expenses | 70 | 93.4 | (23.4) | |||||
Repurchase of common stock | (531.8) | (531.8) | ||||||
Issuance of common stock — acquisition | 1,462 | 45.6 | 1,416.4 | |||||
Employee stock purchase plan | 2 | 2 | ||||||
Distribution of earnings and capital | (20.5) | (26.5) | 6 | |||||
Ending balance at Dec. 31, 2015 | 10,945.2 | 0 | 2 | 8,718.1 | 2,524 | (142.1) | (157.3) | 0.5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (848) | (848) | ||||||
Other comprehensive income (loss), net of tax | 2 | 2 | ||||||
Dividends paid | (123) | (123) | ||||||
Amortization of restricted stock, stock option, and performance shares and other expenses | 24.7 | 0.1 | 45.4 | (20.8) | ||||
Employee stock purchase plan | 2.3 | 2.3 | ||||||
Other | (0.1) | (0.1) | ||||||
Ending balance at Dec. 31, 2016 | 10,003.1 | 0 | 2.1 | 8,765.8 | 1,553 | (140.1) | (178.1) | 0.4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Adoption of ASU 2016-09 | 1 | (1) | ||||||
Beginning balance, adjusted | 10,003.1 | 0 | 2.1 | 8,766.8 | 1,552 | (140.1) | (178.1) | 0.4 |
Net income (loss) | 468.2 | 468.2 | ||||||
Other comprehensive income (loss), net of tax | 53.6 | 53.6 | ||||||
Dividends paid | (113.7) | (113.7) | ||||||
Issuance of preferred stock | 318 | 325 | (7) | |||||
Share repurchases | (3,431.9) | (9.6) | (3,422.3) | |||||
Amortization of restricted stock, stock option, and performance shares and other expenses | 20.3 | 45.1 | (24.8) | |||||
Employee stock purchase plan | 2.8 | 2.8 | ||||||
Other | (0.4) | (0.4) | ||||||
Ending balance at Dec. 31, 2017 | $ 7,320 | $ 325 | $ 2.1 | $ 8,798.1 | $ 1,906.5 | $ (86.5) | $ (3,625.2) | $ 0 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows From Operations | |||
Net income (loss) | $ 468.2 | $ (848) | $ 1,034.1 |
Adjustments to reconcile net income (loss) to net cash flows from operations: | |||
Provision for credit losses | 114.6 | 210.3 | 160.5 |
Net depreciation, amortization and (accretion) | 392.6 | 700 | 783.9 |
Net (gains) losses on asset sales and impairments of assets held for sale and other | (283.4) | 152 | 5.1 |
Loss on debt extinguishment and deposit redemption | 259 | 20.8 | 0 |
(Benefit) provision for deferred income taxes | (39.7) | 978.5 | (572.9) |
(Increase) decrease in loans held for sale | (96.2) | 336.7 | (251.3) |
Goodwill and intangible assets impairment | 255.6 | 358.4 | 15 |
Net (payment) reimbursement of expenses from FDIC | (5.5) | 1.8 | 7.2 |
Decrease in other assets | 170.2 | 230.1 | 53.3 |
(Decrease) increase in other liabilities | (715.6) | 258.6 | (45.1) |
Net cash flows provided by operations | 519.8 | 2,399.2 | 1,189.8 |
Cash Flows From Investing Activities | |||
Change in loans, net | 65.7 | 831.9 | (1,759.2) |
Purchases of investment securities | (6,990.4) | (4,939.2) | (8,316.3) |
Proceeds from sales and maturities of investment securities | 4,741.9 | 3,585.5 | 9,226.6 |
Proceeds from asset and receivable sales | 909.9 | 1,753.9 | 2,252.4 |
Proceeds from sale of commercial air | 10,026 | 0 | 0 |
Purchases of assets to be leased and other equipment | (793.3) | (1,866.8) | (3,088.7) |
Net (increase) decrease in short-term factoring receivables | (260.5) | (170.6) | 124.7 |
Purchases of restricted stock | (32.4) | (1.7) | (128.9) |
Proceeds from redemption of restricted stock | 10.6 | 25.5 | 20.3 |
Payments to the FDIC under loss share agreements | (0.2) | (2.9) | (18.1) |
Proceeds from FDIC under loss share agreements and participation agreements | 63.8 | 147.8 | 33.7 |
Proceeds from the sale of OREO, net of repurchases | 107.3 | 129.2 | 60.8 |
Purchase of bank owned life insurance | (781) | 0 | 0 |
Acquisition, net of cash received | 0 | 0 | 2,521.2 |
Net change in restricted cash | 687.8 | 12.1 | 156.7 |
Net cash flows provided by (used in) investing activities | 7,755.2 | (495.3) | 1,085.2 |
Cash Flows From Financing Activities | |||
Proceeds from the issuance of term debt | 15.3 | 781.1 | 1,626.9 |
Repayments of term debt and net settlements | (8,427.3) | (2,619) | (4,325.3) |
Proceeds from FHLB advances | 2,450 | 1,645.5 | 5,964.1 |
Repayments of FHLB debt | (1,165.4) | (2,352.3) | (6,070.2) |
Net (decrease) increase in deposits | (2,729.1) | (459.1) | 2,419.2 |
Collection of security deposits and maintenance funds | 70.9 | 341.7 | 330.9 |
Use of security deposits and maintenance funds | (37.6) | (149.3) | (147.5) |
Repurchase of common stock | (3,431.9) | 0 | (531.8) |
Net proceeds from issuance of preferred stock | 318 | 0 | 0 |
Dividends paid | (113.7) | (123) | (114.9) |
Taxes paid through withholding of common stock under employee stock plans | (21) | (21.9) | (22.2) |
Purchase of noncontrolling interest | 0 | 0 | (20.5) |
Payments on affordable housing investment credits | 0 | (8.4) | (4.8) |
Net cash flows used in financing activities | (13,071.8) | (2,964.7) | (896.1) |
Effect of exchange rate changes on cash and cash equivalents | 15.6 | (34.6) | (63.8) |
(Decrease) increase in unrestricted cash and cash equivalents | (4,781.2) | (1,095.4) | 1,315.1 |
Unrestricted cash and cash equivalents, beginning of period | 6,375.2 | 7,470.6 | 6,155.5 |
Unrestricted cash and cash equivalents, end of period | 1,594 | 6,375.2 | 7,470.6 |
Supplementary Cash Flow Disclosure | |||
Interest paid | (915.2) | (1,149.7) | (1,112) |
Federal, foreign, state and local income taxes (paid) refunded, net | (40.5) | 61.2 | (9.5) |
Supplementary Non Cash Flow Disclosure | |||
Transfer of assets from held for investment to held for sale | 2,109.6 | 2,093.6 | 3,039.4 |
Transfer of assets from held for investment to held for sale | 174 | 124.4 | 208.7 |
Deposits on flight equipment purchases applied to acquisition of flight equipment purchases, and origination of finance leases, capitalized interest and buyer furnished equipment | 91.2 | 286.6 | 554.2 |
Transfers of assets from held for investment to OREO | 99 | 90.2 | 65.8 |
Capital lease unexercised bargain purchase options | 17.5 | 7.1 | 0 |
Unfunded payments on affordable housing investments credits committed during the period | 60.1 | 55 | 0 |
Issuance of common stock as consideration | $ 0 | $ 0 | $ 1,462 |
Business And Summary Of Signifi
Business And Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Business And Summary Of Significant Accounting Policies | BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CIT Group Inc., together with its subsidiaries (collectively "we", "our", "CIT" or the "Company"), is a bank holding company ("BHC") and a financial holding company ("FHC"). CIT was formed in 1908 and provides financing, leasing and advisory services principally to middle-market companies in a wide variety of industries, primarily in North America. We also provide banking and related services to commercial and individual customers through our banking subsidiary, CIT Bank, N.A. ("CIT Bank"), which includes 70 branches located in Southern California and its online bank, bankoncit.com. CIT is regulated by the Board of Governors of the Federal Reserve System ("FRB") and the Federal Reserve Bank of New York ("FRBNY") under the U.S. Bank Holding Company Act of 1956, as amended. CIT Bank is regulated by the Office of the Comptroller of the Currency of the U.S. Department of the Treasury ("OCC"). BASIS OF PRESENTATION Basis of Financial Information The accounting and financial reporting policies of CIT conform to generally accepted accounting principles ("GAAP") in the United States and the preparation of the consolidated financial statements is in conformity with GAAP which requires management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates and assumptions. Some of the more significant estimates include: allowance for loan losses, loan impairment, fair value determination, lease residual values, liabilities for uncertain tax positions, realizability of deferred tax assets, purchase accounting adjustments, indemnification assets, goodwill, intangible assets, and contingent liabilities. Additionally where applicable, the policies conform to accounting and reporting guidelines prescribed by bank regulatory authorities. Principles of Consolidation The accompanying consolidated financial statements include financial information related to CIT and its majority-owned subsidiaries and those variable interest entities ("VIEs") where the Company is the primary beneficiary ("PB"). In preparing the consolidated financial statements, all significant inter-company accounts and transactions have been eliminated. Assets held in an agency or fiduciary capacity are not included in the consolidated financial statements. Effective as of August 3, 2015 , CIT Group Inc. ("CIT") acquired IMB HoldCo LLC ("IMB"), the parent company of OneWest Bank, National Association, a national bank ("OneWest Bank"). CIT Bank, then a Utah-state chartered bank and a wholly-owned subsidiary of CIT, merged with and into OneWest Bank (the "OneWest Transaction"), with OneWest Bank surviving as a wholly-owned subsidiary of CIT with the name CIT Bank, National Association ("CIT Bank, N.A." or "CIT Bank"). As such, the results for the year ended December 31, 2015 contain activity of OneWest Bank for approximately five months . Discontinued Operations Discontinued Operations as of December 31, 2017 included certain assets and liabilities of the business air business, along with the Financial Freedom business that was acquired as part of the OneWest Transaction. Assets and liabilities as of December 31, 2016 also included the commercial air business. We sold the Commercial Air business, except for certain Commercial Air loans and investments in CIT Bank, on April 4, 2017. Income (loss) from discontinued operations reflects the activities of the aerospace (commercial air and business air) businesses for the years ended December 31, 2017 , 2016 , and 2015 . Income (loss) from discontinued operations also included the activities of Financial Freedom for the periods since its acquisition date, August 3, 2015 . On October 6, 2017, CIT announced that CIT Bank, N.A. has agreed to sell Financial Freedom, its reverse mortgage servicing business and the reverse mortgage portfolio serviced by Financial Freedom (the “Financial Freedom Transaction”). The Financial Freedom Transaction is expected to close in the second quarter of 2018 and is subject to certain regulatory and investor approvals and other customary closing conditions. See Note 2 - Discontinued Operations . Revisions The Company has revised the Consolidated Statements of Cash Flows for the year ended December 31, 2016 in connection with immaterial errors impacting the classification of certain balances between line items and categories in the Consolidated Statements of Cash Flows. The misclassifications resulted in an overstatement of net cash flows provided by operations of $ 3.6 million (which included an overstatement of the "decrease in other assets" line item of $ 935.0 million and an overstatement of the "decrease in accrued liabilities and payables" line item of $ 936.4 million for prior year errors identified in 2017), and an understatement of net cash flows used in investing activities of $ 3.6 million . SIGNIFICANT ACCOUNTING POLICIES Loans and Leases CIT extends credit to commercial customers through a variety of financing arrangements including term loans, revolving credit facilities, capital (direct finance) leases and operating leases. CIT also extends credit through consumer loans, including residential mortgages and has a portfolio of reverse mortgages, which is currently recorded in Assets Held for Sale ("AHFS"). The amounts outstanding on term loans, consumer loans, revolving credit facilities and capital leases, along with past due lease payments on operating lease equipment, are referred to as loans. These loans, when combined with 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 resell 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. Direct financing 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 cost or fair value. At the time of transfer, a write-down of the loan is recorded as a charge-off when the carrying amount exceeds fair value and the difference relates to credit quality, otherwise the write-down is recorded as a reduction to other non-interest income, and any allowance for loan loss is reversed. Once classified as AHFS, the amount by which the carrying value exceeds fair value is recorded as a valuation allowance and is reflected as a reduction to other non-interest income. If it is determined that a loan should be transferred from AHFS to HFI, the loan is transferred at the lower of cost or fair value on the transfer date, which coincides with the date of change in management’s intent. The difference between the carrying value of the loan and the fair value, if lower, is reflected as a loan discount at the transfer date, which reduces its carrying value. Subsequent to the transfer, the discount is accreted into earnings as an increase to interest income over the life of the loan using the effective interest method. 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. 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 is marked to the lower of cost or fair value with the adjustment recorded in other non-interest income. In the operating lease portfolio in discontinued operations at December 31, 2016, maintenance costs incurred that exceed maintenance funds collected for commercial aircraft are expensed if they do not provide a future economic benefit and do not extend the useful life of the aircraft. Such costs may include costs of routine aircraft operation and costs of maintenance and spare parts incurred in connection with re-leasing an aircraft and during the transition between leases. For such maintenance costs that are not capitalized, a charge is recorded in expense at the time the costs are incurred. Income recognition related to maintenance funds collected and not used during the life of the lease is deferred to the extent management estimates costs will be incurred by subsequent lessees performing scheduled maintenance. Upon the disposition of an aircraft, any excess maintenance funds that exist are recognized in discontinued operations - other non-interest income. Loans acquired are initially recorded at their fair value on the acquisition date. For loans that were not considered credit impaired at the date of acquisition and for which cash flows were evaluated based on contractual terms, a premium or discount was 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 will be recognized in Interest Income. If the loan is sold, the remaining discount will be considered in the resulting gain or loss on sale. If the loan is subsequently classified as non-accrual, or transferred to AHFS, accretion / amortization of the discount (premium) will cease. For loans that were purchased with evidence of credit quality deterioration since origination, the discount recorded includes accretable and non-accretable components. For purposes of income recognition, and consistent with valuation models across loan portfolios, the Company has elected to not take a position on the movement of future interest rates in the model. If interest rates rise, the loans will generate higher income. If rates fall, the loans will generate lower income. Purchased Credit-Impaired Loans Purchased credit-impaired loans (“PCI loans”) are accounted for in accordance with ASC 310-30 Loans and Debt Securities Acquired with Deteriorated Credit Quality (“ASC 310-30”) . PCI loans were determined as of the date of purchase to have evidence of credit quality deterioration, which make it probable that the Company will be unable to collect all contractually required payments (principal and interest). Evidence of credit quality deterioration as of the purchase date may include past due status, recent borrower credit scores, credit rating (probability of obligor default) and recent loan-to-value ratios. Commercial PCI loans are accounted for as individual loans. Conversely, consumer PCI loans with similar common risk characteristics are pooled together for accounting purposes (i.e., into one unit of account). Common risk characteristics consist of similar credit risk (e.g., delinquency status, loan-to-value, or credit risk rating) and at least one other predominant risk characteristic (e.g., loan type, collateral type, interest rate index, date of origination or term). For pooled loans, each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows for the pool. At acquisition, PCI loans are initially recorded at estimated fair value, which is determined by discounting each commercial loan’s or consumer pool’s principal and interest cash flows expected to be collected using a discount rate for similar instruments with adjustments that management believes a market participant would consider. The Company estimates the cash flows expected to be collected at acquisition using internal credit risk and prepayment risk models that incorporate management’s best estimate of current key assumptions, such as default rates, loss severity and prepayment speeds of the loan. For PCI loans, an accretable yield is measured as the excess of the cash flows expected to be collected, estimated at the acquisition date, over the recorded investment (estimated fair value at acquisition) and is recognized in interest income over the remaining life of the loan, or pool of loans, on an effective yield basis. The difference between the cash flows contractually required to be paid, measured as of the acquisition date, over the cash flows expected to be collected is referred to as the non-accretable difference. Subsequent to acquisition, the estimates of the cash flows expected to be collected are evaluated on a quarterly basis for both commercial PCI loans (evaluated individually) and consumer PCI loans (evaluated on a pool basis). During each subsequent reporting period, the cash flows expected to be collected shall be reviewed but will be revised only if it is deemed probable that a significant change has occurred. Probable and significant decreases in expected cash flows as a result of further credit deterioration result in a charge to the provision for credit losses and a corresponding increase to the allowance for loan losses. Probable increases in cash flows expected to be collected due to improved credit quality result in recovery of any previously recorded allowance for loan losses, to the extent applicable, and an increase in the accretable yield applied prospectively for any remaining increase. The accretable yield is affected by revisions to previous expectations that result in an increase in expected cash flows, changes in interest rate indices for variable rate PCI loans, changes in prepayment assumptions and changes in expected principal and interest payments and collateral values. The Company assumes a flat forward interest curve when analyzing future cash flows for the mortgage loans. Changes in expected cash flows caused by changes in market interest rates are recognized as adjustments to the accretable yield on a prospective basis. Resolutions of loans may include sales to third parties, receipt of payments in settlement with the borrower, or foreclosure of the collateral. Upon resolution, the Company’s policy is to remove an individual consumer PCI loan from the pool at its carrying amount. Any difference between the loans carrying amount and the fair value of the collateral or other assets received does not affect the percentage yield calculation used to recognize accretable yield on the pool. This removal method assumes that the amount received from these resolutions approximates the pool performance expectations of cash flows. The accretable yield percentage is unaffected by the resolution. Modifications or refinancing of loans accounted for within a pool do not result in the removal of those loans from the pool; instead, the revised terms are reflected in the expected cash flows within the pool of loans. Reverse Mortgages Reverse mortgage loans are contracts in which a homeowner borrows against the equity in their home and receives cash in one lump sum payment, a line of credit, fixed monthly payments for either a specific term or for as long as the homeowner lives in the home or a combination of these options. Reverse mortgages feature no recourse to the borrower, no required repayment during the borrower’s occupancy of the home (as long as the borrower complies with the terms of the mortgage), and, in the event of foreclosure, a repayment amount that cannot exceed the lesser of either the unpaid principal balance of the loan or the proceeds recovered upon sale of the home. The mortgage balance consists of cash advanced, interest compounded over the life of the loan, capitalized mortgage insurance premiums, and other servicing advances capitalized into the loan. Revenue Recognition 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. See Purchase Accounting Adjustments in Note 2 - Discontinued Operations. Uninsured reverse mortgages in continuing operations that were determined to be non-PCI are accounted for in accordance with the instructions provided by the staff of the Securities and Exchange Commission (“SEC”) entitled “Accounting for Pools of Uninsured Residential Reverse Mortgage Contracts.” For these uninsured reverse mortgages, the Company has determined that as a result of the similarities between both the reverse mortgage borrowers’ demographics and the terms of the reverse mortgage loan contracts, these reverse mortgages are accounted for at the pool level. To determine the effective yield of the pool, we project the pool’s cash inflows and outflows including actuarial projections of the life expectancy of the individual contract holder and changes in the collateral value of the residence are projected. At each reporting date, a new economic forecast is made of the cash inflows and outflows for the population of reverse mortgages. Projections of cash flows assume the use of flat forward rate interest curves. The effective yield of the pool is recomputed and income is adjusted to retrospectively reflect the revised rate of return. Because of this accounting, the recorded value of reverse mortgage loans and interest income can result in significant volatility associated with the estimates. As a result, income recognition can vary significantly from period to period. The pool method of accounting results in the establishment of an Actuarial Valuation Allowance (“AVA”) related to the deferral of net gains from loans exiting the pool. The AVA is a component of the net book value of the portfolio and has the ability to absorb potential collectability short-falls. Insured reverse mortgages included in continuing operations were determined to be PCI, even though these loans are Home Equity Conversion Mortgages (“HECMs”) insured by the Federal Housing Administration, based on management’s consideration of the loan’s loan-to-value (“LTV”) and its relationship to the loan’s Maximum Claim Amount. As such, based on the guidance in ASC 310-30, revenue recognition and income measurement for these loans is based on expected rather than contractual cash flows; and, the fair value adjustment on these loans included both accretable and non-accretable components. 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 recorded related to acquisitions completed by the Company and 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 and lease receivables 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 for a minimum of six months . The recognition of interest income on reverse mortgages is suspended upon the latter of the foreclosure sale date or date on which marketable title has been acquired (i.e. property becomes OREO). The Company periodically modifies the terms of loan in response to borrowers’ financial difficulties. These modifications may include interest rate changes, principal forgiveness or payment deferments. Loans that are modified, where a concession has been made to the borrower, are accounted for as Troubled Debt Restructurings (“TDRs”). TDRs are generally placed on non-accrual upon their restructuring and remain on non-accrual until, in the opinion of management, collection of remaining principal and interest is reasonably assured, and upon collection of six consecutive scheduled payments. PCI loans in pools that the Company may modify as TDRs are not within the scope of the accounting guidance for TDRs. Allowance for Loan Losses on Loans The allowance for loan losses ("ALLL") is intended to provide for credit losses inherent in the HFI loan portfolio and is periodically reviewed for adequacy. The allowance for loan losses is determined based on three key components: (1) specific allowances for loans that are impaired, based upon the value of underlying collateral or projected cash flows, or observable market price, (2) non-specific allowances for estimated losses inherent in the non-impaired portfolio based upon the expected loss over the loss emergence period, and (3) allowances for estimated losses inherent in the portfolio based upon economic risks, industry and geographic concentrations, and other factors, not in the non-specific allowance. Changes to the Allowance for Loan Losses are recorded in the Provision for Credit Losses. Determining an appropriate allowance for loan losses requires significant judgment that may change based on management’s ongoing process in analyzing the credit quality of the Company’s HFI loan portfolio. Loans are divided into the following portfolio segments, which correspond to the Company’s business segments: Commercial Banking, Consumer Banking and Non-Strategic Portfolios (“NSP”). Within each portfolio segment, credit risk is assessed and monitored in the following classes of loans; within Commercial Banking, Commercial Finance, Real Estate Finance, Business Capital, and Rail, are collectively referred to as Commercial Loans. Within Consumer Banking, classes include Legacy Consumer Mortgages (“LCM”) and Other Consumer Lending, collectively referred to as Consumer Loans. The allowance is estimated based upon the loans in the respective class. For each portfolio, impairment is generally measured individually for larger non-homogeneous loans ( $500 thousand or greater) and collectively for groups of smaller loans with similar characteristics or for designated pools of PCI loans based on decreases in cash flows expected to be collected subsequent to acquisition. Loans acquired were initially recorded at estimated fair value at the time of acquisition. Expected credit losses were included in the determination of estimated fair value, no allowance was established on the acquisition date. Allowance Methodology Commercial Loans With respect to commercial portfolios, the Company monitors credit quality indicators, including expected and historical losses and levels of, and trends in, past due loans, non-performing assets and impaired loans, collateral values and economic conditions. Commercial loans are graded according to the Company’s internal rating system with respect to probability of default and loss given default (severity) based on various risk factors. The non-specific allowance is determined based on the estimated probability of default, which reflects the borrower’s financial strength, and the severity of loss in the event of default, considering the quality of the underlying collateral. The probability of default and severity are derived through historical observations of default and subsequent losses within each risk grading. A specific allowance is also established for impaired commercial loans and commercial loans modified in a TDR. Refer to the Impairment of Loans section of this Note for details. Consumer Loans For residential mortgages, the Company develops a loss reserve factor by deriving the projected lifetime losses then adjusting for losses expected to be specifically identified within the loss emergence period. The key drivers of the projected lifetime losses include the type of loan, type of product, delinquency status of the underlying loans, loan-to-value and/or debt-to-income ratios, geographic location of the collateral, and any guarantees. For uninsured reverse mortgage loans in continuing operations, an allowance is established if the Company is likely to experience losses on the disposition of the property that are not reflected in the recorded investment, including the AVA, as the source of repayment of the loan is tied to the home’s collateral value alone. A reverse mortgage matures when one of the following events occur: 1) the property is sold or transferred, 2) the last remaining borrower dies, 3) the property ceases to be the borrower’s principal residence, 4) the borrower fails to occupy the residence for more than 12 consecutive months or 5) the borrower defaults under the terms of the mortgage or note. A maturity event other than death is also referred to as a mobility event. The level of any required allowance for loan losses on reverse mortgage loans is based on the Company’s estimate of the fair value of the property at the maturity event based on current conditions and trends. The allowance for loan losses assessment on uninsured reverse mortgage loans is performed on a pool basis and is based on the Company’s estimate of the future fair value of the properties at the maturity event based on current conditions and trends. Other Allowance Factors If commercial or consumer loan losses are reimbursable by the Federal Deposit Insurance Corporation (“FDIC”) under the loss sharing agreement, the recorded provision is partially offset by any benefit expected to be derived from the related indemnification asset subject to management’s assessment of the collectability of the indemnification asset and any contractual limitations on the indemnified amount. See Indemnification Assets later in this section. With respect to assets transferred from HFI to AHFS, a charge-off is recognized to the extent carrying value exceeds the fair value and the difference relates to credit quality. An approach similar to the allowance for loan losses is utilized to calculate a reserve for losses related to unfunded loan commitments and deferred purchase commitments. A reserve for unfunded loan commitments is maintained to absorb estimated probable losses related to these facilities. The adequacy of the reserve is determined based on periodic evaluations of the unfunded credit facilities, including an assessment of the probability of commitment usage, credit risk factors for loans outstanding to these same customers, and the terms and expiration dates of the unfunded credit facilities. The reserve for unfunded loan commitments and deferred purchase commitments are recorded as a liability on the Consolidated Balance Sheet. Net adjustments to the reserve for unfunded loan commitments and deferred purchase commitments are included in the provision for credit losses. The allowance policies described above relate to specific and non-specific allowances, and the impaired loans and charge-off policies that follow are applied across the portfolio segments and loan classes therein. Given the nature of the Company’s business, the specific allowance relates to the Commercial Banking segments. The non-specific allowance, which considers the Company’s internal system of probability of default and loss severity ratings for commercial loans, among other factors, is applicable to both commercial and consumer loans. Additionally, divisions in Commercial Banking and Consumer Banking segments also utilize methodologies under ASC 310-30 for PCI loans, as discussed below. PCI Loans See Purchased Credit-Impaired Loans in Loans and Leases for description of allowance factors. Past Due and Non-Accrual Loans A loan is considered past due for financial reporting purposes if default of contractual principal or interest exists for a period of 30 days or more. Past due loans consist of loans that are still accruing interest as well as loans on non-accrual status. Loans are placed on non-accrual status when the financial condition of the borrower has deteriorated and payment in full of principal or interest is not expected or the scheduled payment of principal and interest has been delinquent for 90 days or more, unless the loan is both well secured and in the process of collection. PCI loans are written down at acquisition to their fair value using an estimate of cash flows deemed to be probable of collection. Accordingly, such loans are no longer classified as past due or non-accrual even though they may be contractually past due because we expect to fully collect the new carrying values of these loans. Due to the nature of reverse mortgage loans (i.e., these loans do not contain a contractual due date or regularly scheduled payments due from the borrower), they are considered current for purposes of past due reporting and are excluded from reported non-accrual loan balances. Impairment of Loans Impairment occurs when, based on current information and events, it is probable that CIT will be unable to collect all amounts due according to contractual terms of the agreement. Impairment is measured as the shortfall between estimated value and recorded investment in the loan, with the estimated value determined using fair value of collateral and other cash flows if the loan is collateralized, the present value of expected future cash flows discounted at the contract’s effective interest rate, or observable market prices. Impaired loans of $500 thousand or greater that are placed on non-accrual status, largely in Commercial Finance, Real Estate Finance, and Business Capital, are subject to periodic individual review by the Company’s problem loan management (“PLM”) function. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS Aerospace The following condensed balance sheet reflects the Business Air business as of December 31, 2017 and a combination of the Commercial Air and Business Air businesses as of December 31, 2016 . The condensed statements of income include Commercial Air up to the sale on April 4, 2017, and Business Air for all periods. The Commercial Air sale price was $ 10.4 billion , and we recorded a pre-tax gain of $ 146 million ($ 106 million after tax), which is included in the Condensed Statement of Income below for the year ended December 31, 2017 . Business Air offered financing and leasing programs for corporate and private owners of business jets. Products included term loans, leases, pre-delivery financing, fractional share financing and vendor / manufacturer financing. Condensed Balance Sheet — Aerospace Discontinued Operations (dollars in millions) December 31, 2017 December 31, 2016 Total cash and deposits $ — $ 759.0 Net Loans 165.8 1,047.7 Operating lease equipment, net 18.4 9,677.6 Goodwill — 126.8 Other assets (1) — 1,161.5 Assets of discontinued operations $ 184.2 $ 12,772.6 Secured borrowings $ — $ 1,204.6 Other liabilities (2) 8.8 1,597.3 Liabilities of discontinued operations $ 8.8 $ 2,801.9 (1) Amount includes deposits on commercial aerospace equipment of $1,013.7 million at December 31, 2016 . (2) Amount includes commercial aerospace maintenance reserves of $1,084.9 million and security deposits of $167.0 million at December 31, 2016 . Condensed Statement of Income — Aerospace Discontinued Operations (dollars in millions) Years Ended December 31, 2017 2016 2015 Interest income $ 29.3 $ 72.8 $ 70.2 Interest expense 99.6 369.3 366.5 Provision for credit losses — 15.6 1.8 Rental income on operating leases 312.5 1,236.8 1,134.4 Other non-interest income (1) 9.0 22.5 56.5 Depreciation on operating lease equipment (2) — 345.6 411.4 Maintenance and other operating lease expenses 4.2 32.1 45.8 Operating expenses (3) 39.6 101.9 68.2 Loss on debt extinguishment (4) 39.0 8.3 1.1 Income from discontinued operations before provision for income taxes 168.4 459.3 366.3 Provision for income taxes (5) 70.5 914.6 45.9 Gain on sale of discontinued operations, net of taxes 118.6 — — Income (loss) from discontinued operations, net of taxes $ 216.5 $ (455.3 ) $ 320.4 (1) Other non-interest income includes impairment charges on assets transferred to AHFS of $32 million and $4 million for the years ended 2016 and 2015 , respectively. (2) Depreciation on operating lease equipment is suspended when an operating lease asset is placed in Assets Held for Sale. Pre-tax income for 2016 benefited from $ 106 million of suspended depreciation related to operating lease equipment (3) Operating expenses include salaries and benefits and other operating expenses in prior quarters. Operating expenses included costs related to the commercial air separation initiative for the years ended December 31, 2017 and 2016. (4) The Company repaid approximately $1 billion of secured borrowings in the first quarter of 2017 within discontinued operations and recorded a loss of $39 million in relation to the extinguishment of those borrowings. (5) Provision for income taxes for the year ended December 31, 2016 includes $847 million net tax expense related to the Company's decision to no longer assert that it would indefinitely reinvest the unremitted earnings of Commercial Air. For the years ended December 31, 2017 , 2016 and 2015 , the Company's tax rate for discontinued operations was 42% , 199% and 12% , respectively. Income from the discontinued operations for the years ended December 31, 2017, 2016, and 2015 was driven primarily by revenues on leased aircraft, while 2017 also reflected the gain on sale of Commercial Air. The interest expense included amounts allocated to the businesses and on secured debt included in the Condensed Balance Sheet. Operating expenses included in discontinued operations consisted of direct expenses of the Commercial Air and Business Air businesses that were separate from ongoing CIT operations. In connection with the classification of the Aerospace businesses as discontinued operations, certain indirect operating expenses that previously had been allocated to the businesses have instead been re-allocated as part of continuing operations. The total incremental pretax amounts of indirect overhead expenses that were previously allocated to the Aerospace businesses and remain in continuing operations were approximately $19 million and $39 million for the years ended December 31, 2016 and 2015 , respectively. Condensed Statement of Cash Flows — Aerospace Discontinued Operations (dollars in millions) Years Ended December 31, 2017 2016 2015 Net cash flows provided by operations $ 32.4 $ 35.7 $ 942.1 Net cash flows provided by (used in) investing activities 10,812.7 (655.9 ) (749.6 ) Reverse Mortgage Servicing The Financial Freedom business, a division of CIT Bank that services reverse mortgage loans, was acquired in conjunction with the OneWest Transaction. The Financial Freedom business is reflected as discontinued operations. Assets of discontinued operations primarily include Home Equity Conversion Mortgage ("HECM") loans and servicing advances. The liabilities of discontinued operations include reverse mortgage servicing liabilities, which relates primarily to loans serviced for third party investors, secured borrowings and contingent liabilities. Continuing operations includes a separate portfolio of reverse mortgage loans of $861 million and other real estate owned assets of $21 million at December 31, 2017 , which are recorded on the Consumer Banking segment (refer to Note 3-Loans) and are serviced by Financial Freedom. On October 6, 2017, CIT entered into a definitive agreement to sell the Financial Freedom business and the reverse mortgage loan portfolio and OREO serviced by Financial Freedom (the "Financial Freedom Transaction"). The Financial Freedom Transaction is expected to close in the second quarter of 2018 and is subject to customary closing conditions, including the approval of certain government agencies and the consent of private investors related to the reverse mortgage servicing business. The agreement between the Company and the buyer contains representations and warranties, including but not limited to the conduct of the business, the servicing practices, and compliance with the servicing standards set by HUD and the FHA and by private investors, as well as covenants regarding the conduct of business both pre-closing and post-closing. The agreement contains certain indemnifications to allocate risks between the parties, subject to certain caps and limitations, including but not limited to the conduct of the business and compliance with servicing standards pre-closing. CIT also will retain certain pre-closing liabilities, including the cost of legacy and future litigation matters related to pre-closing actions. As a mortgage servicer of residential reverse mortgage loans, the Company is exposed to contingent liabilities for breaches of servicer obligations as set forth in industry regulations established by the Department of Housing and Urban Development ("HUD") and the Federal Housing Administration ("FHA") and in servicing agreements with the applicable counterparties, such as third party investors. Under these agreements, the servicer may be liable for failure to perform its servicing obligations, which could include fees imposed for failure to comply with foreclosure timeframe requirements established by servicing guides and agreements to which CIT is a party as the servicer of the loans. The Company has established reserves for contingent servicing-related liabilities associated with discontinued operations. During the year ended December 31, 2017 , the Company and the FDIC resolved the selling and servicing-related obligations for certain reverse mortgage loans with Fannie Mae. In connection with the settlement, the Company released the FDIC from its indemnification obligation to CIT with respect to the Fannie Mae serviced loans, which reduced the indemnification asset by $77 million . As of December 31, 2017 , the indemnification asset from the FDIC was $29 million for covered servicing-related obligations related to reverse mortgage loans pursuant to the loss share agreement between CIT Bank and the FDIC related to the acquisition by OneWest Bank from the FDIC of certain assets of IndyMac Federal Bank FSB ("IndyMac") (the "IndyMac Transaction"). Refer to Note 5 - Indemnification Assets , for further information . During the year ended December 31, 2017 , Financial Freedom results were driven by a net release of the curtailment reserve of $111 million , partially offset by an increase of $40 million in other servicing-related reserves in connection with the settlement with Fannie Mae. In addition, during the year ended December 31, 2017, the Company entered into a settlement of approximately $89 million with the HUD OIG and Department of Justice to resolve servicing related claims. See Note 22 - Contingencies , for further discussion. Further, the Company recognized an impairment of its mortgage servicing rights liability of approximately $50 million , included in Other liabilities. Condensed Balance Sheet — Financial Freedom Discontinued Operation (dollars in millions) December 31, 2017 December 31, 2016 Total cash and deposits, all of which is restricted $ 7.7 $ 5.8 Net Loans (1) 272.8 374.0 Other assets (2) 36.6 68.3 Assets of discontinued operations $ 317.1 $ 448.1 Secured borrowings (1) $ 268.2 $ 366.4 Other liabilities (3) 232.3 569.4 Liabilities of discontinued operations $ 500.5 $ 935.8 (1) Net finance receivables include $267.2 million and $365.5 million of securitized balances at December 31, 2017 and December 31, 2016 , respectively, and $5.6 million and $8.5 million of additional draws awaiting securitization respectively. Secured borrowings relate to those receivables. (2) Amount includes servicing advances, servicer receivables and property and equipment, net of accumulated depreciation. The loans serviced for others total $ 14.1 billion and $ 15.6 billion for reverse mortgage loans as of December 31, 2017 and 2016. (3) Other liabilities include $137.8 million and $518.2 million of contingent liabilities, $79.5 million and $28.8 million of reverse mortgage servicing liabilities and $15.0 million and $22.3 million of other accrued liabilities at December 31, 2017 and December 31, 2016 , respectively. The results from discontinued operations for the years ended December 31, 2017 , 2016 and 2015 , which includes approximately five months of activity, are presented below. Condensed Statements of Income — Financial Freedom Discontinued Operation (dollars in millions) Years Ended December 31, 2017 2016 2015 Interest income (1) $ 10.2 $ 11.6 $ 4.3 Interest expense (1) 9.5 10.7 4.4 Other non-interest income (loss) (2) (22.9 ) 15.4 16.7 Operating expenses (benefit) (3) (9.6 ) 330.1 33.7 Loss from discontinued operations before benefit for income taxes (12.6 ) (313.8 ) (17.1 ) (Benefit) for income taxes (4) (4.9 ) (103.7 ) (6.7 ) Loss from discontinued operations, net of taxes $ (7.7 ) $ (210.1 ) $ (10.4 ) (1) Includes amortization for the premium associated with the HECM loans and related secured borrowings. (2) For the year ended December 31, 2017 and December 31, 2016 , other non-interest income (loss) included an impairment charge of approximately $50 million and $ 19 million , respectively, on the mortgage servicing liability. (3) For the year ended December 31, 2017 , 2016 and 2015, operating expense is comprised of approximately $19 million , $16 million and $11 million in salaries and benefits, $11 million , $27 million and $6 million in professional and legal services, and $17 million , $22 million and $16 million for other expenses such as data processing, premises and equipment, and miscellaneous charges, respectively. In addition, for the year ended December 31, 2017 operating expenses included a net release of the curtailment reserve of $111 million which is net of a corresponding decrease in the indemnification receivable from the FDIC, partially offset by an increase of $40 million in other servicing-related reserve. For the year ended December 31, 2016, operating expenses included an increase in servicing-related reserve of approximately $260 million net of a corresponding increase in the indemnification receivable from the FDIC. (4) For the years ended December 31, 2017 , 2016 and 2015 the Company's tax rate for discontinued operations is 39% , 33% and 39% , respectively. Condensed Statements of Cash Flow — Financial Freedom Discontinued Operation (dollars in millions) Years Ended December 31, 2017 2016 2015 Net cash flows (used) in provided by operations $ (47.0 ) $ (40.0 ) $ 18.5 Net cash flows provided by investing activities 112.6 88.5 27.9 Combined Results for Discontinued Operations The following tables reflect the combined results of discontinued operations. Details of balances are discussed in the prior tables. Condensed Combined Balance Sheets of Discontinued Operations (dollars in millions) December 31, 2017 December 31, 2016 Total cash and deposits $ 7.7 $ 764.8 Net Loans 438.6 1,421.7 Operating lease equipment, net 18.4 9,677.6 Goodwill — 126.8 Other assets 36.6 1,229.8 Assets of discontinued operations $ 501.3 $ 13,220.7 Secured borrowings $ 268.2 $ 1,571.0 Other liabilities 241.1 2,166.7 Liabilities of discontinued operations $ 509.3 $ 3,737.7 Condensed Combined Statements of Income of Discontinued Operations (dollars in millions) Years Ended December 31, 2017 2016 2015 Interest income $ 39.5 $ 84.4 $ 74.5 Interest expense 109.1 380.0 370.9 Provision for credit losses — 15.6 1.8 Rental income on operating leases 312.5 1,236.8 1,134.4 Other non-interest income (loss) (13.9 ) 37.9 73.2 Depreciation on operating lease equipment — 345.6 411.4 Maintenance and other operating lease expenses 4.2 32.1 45.8 Operating expenses 30.0 432.0 101.9 Loss on debt extinguishment 39.0 8.3 1.1 Income from discontinued operations before provision for income taxes 155.8 145.5 349.2 Provision for income taxes 65.6 810.9 39.2 Gain on sale of discontinued operations, net of taxes 118.6 — — Income (loss) from discontinued operations, net of taxes $ 208.8 $ (665.4 ) $ 310.0 Condensed Combined Statement of Cash Flows of Discontinued Operations (dollars in millions) Years Ended December 31, 2017 2016 2015 Net cash flows (used in) provided by operations $ (14.6 ) $ (4.3 ) $ 960.6 Net cash flows provided by (used in) investing activities 10,925.3 (567.4 ) (721.7 ) |
Loans
Loans | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Loans | LOANS Loans, excluding those reflected as discontinued operations, consist of the following: Loans by Product (dollars in millions) December 31, 2017 December 31, 2016 Commercial Loans $ 20,892.1 $ 20,117.8 Direct financing leases and leveraged leases 2,685.8 2,852.9 Total commercial 23,577.9 22,970.7 Consumer Loans 5,536.0 6,565.2 Total loans 29,113.9 29,535.9 Loans held for sale 1,095.7 635.8 Loans held for investment and held for sale (1) $ 30,209.6 $ 30,171.7 (1) Assets held for sale on the Balance Sheet as of December 31, 2017 and December 31, 2016 includes loans and operating lease equipment primarily related to portfolios in Commercial Banking, Consumer Banking and the China portfolio in NSP. As discussed in subsequent tables, since the Company manages the credit risk and collection of loans held for sale consistently with its loans held for investment, the aggregate amount is presented in this table. The following table presents loans by segment, based on obligor location: Loans (dollars in millions) December 31, 2017 December 31, 2016 Domestic Foreign Total Domestic Foreign Total Commercial Banking $ 21,368.7 $ 1,790.6 $ 23,159.3 $ 20,440.7 $ 2,121.6 $ 22,562.3 Consumer Banking (1) 5,954.6 — 5,954.6 6,973.6 — 6,973.6 Total $ 27,323.3 $ 1,790.6 $ 29,113.9 $ 27,414.3 $ 2,121.6 $ 29,535.9 (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 balance and included in the Commercial loan balances in the tables throughout this note. The following table presents selected components of the net investment in loans: Components of Net Investment in Loans (dollars in millions) December 31, 2017 December 31, 2016 Unearned income $ (727.8 ) $ (727.1 ) Equipment residual values 522.6 583.4 Net unamortized premiums / (discounts) 3.7 (31.0 ) Accretable yield on PCI loans 1,063.7 1,261.4 Net unamortized deferred costs and (fees) (1) 68.7 55.8 Leveraged lease third party non-recourse debt payable (97.3 ) (109.7 ) (1) Balance relates to the Commercial Banking segment. Certain of the following tables present credit-related information at the "class" level. A class is generally a disaggregation of a portfolio segment. In determining the classes, CIT considered the loan characteristics and methods it applies in monitoring and assessing credit risk and performance. Credit Quality Information Commercial obligor risk ratings are reviewed on a regular basis by Credit Risk Management and are adjusted as necessary for updated information affecting the borrowers' ability to fulfill their obligations. The definitions of the commercial loan ratings are as follows: • Pass — loans in this category do not meet the criteria for classification in one of the categories below. • Special mention — a special mention asset exhibits potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects. • Classified — a classified asset ranges from: (1) assets that exhibit a well-defined weakness and are inadequately protected by the current sound worth and paying capacity of the borrower, and are characterized by the distinct possibility that some loss will be sustained if the deficiencies are not corrected to (2) assets with weaknesses that make collection or liquidation in full unlikely on the basis of current facts, conditions, and values. Assets in this classification can be accruing or on non-accrual depending on the evaluation of these factors. The following table summarizes commercial loans by the risk ratings that bank regulatory agencies utilize to classify credit exposure and which are consistent with indicators the Company monitors. The consumer loan risk profiles are different from commercial loans, and use loan-to-value ("LTV") ratios in rating the credit quality, and therefore are presented separately below. Commercial Loans and Held for Sale Loans — Risk Rating by Class / Segment (dollars in millions) Grade: Pass Special Mention Classified- accruing Classified- non-accrual PCI Loans Total December 31, 2017 Commercial Banking Commercial Finance $ 8,284.1 $ 640.9 $ 981.9 $ 134.8 $ 10.6 $ 10,052.3 Real Estate Finance 5,228.1 139.9 174.3 2.8 45.1 5,590.2 Business Capital 7,028.6 269.2 228.8 53.2 — 7,579.8 Rail 100.6 2.0 1.2 — — 103.8 Total Commercial Banking 20,641.4 1,052.0 1,386.2 190.8 55.7 23,326.1 Consumer Banking Other Consumer Banking (1) 378.5 5.9 31.9 — 2.2 418.5 Total Consumer Banking 378.5 5.9 31.9 — 2.2 418.5 Non-Strategic Portfolios 35.7 7.6 10.2 9.8 — 63.3 Total $ 21,055.6 $ 1,065.5 $ 1,428.3 $ 200.6 $ 57.9 $ 23,807.9 December 31, 2016 Commercial Banking Commercial Finance $ 8,184.7 $ 677.6 $ 1,181.7 $ 188.8 $ 42.7 $ 10,275.5 Real Estate Finance 5,191.4 168.7 115.6 20.4 70.5 5,566.6 Business Capital 6,238.7 422.0 271.7 41.7 — 6,974.1 Rail 88.7 14.1 0.9 — — 103.7 Total Commercial Banking 19,703.5 1,282.4 1,569.9 250.9 113.2 22,919.9 Consumer Banking Other Consumer Banking (2) 374.9 8.3 22.4 — 2.8 408.4 Total Consumer Banking 374.9 8.3 22.4 — 2.8 408.4 Non- Strategic Portfolios 143.7 36.9 19.1 10.3 — 210.0 Total $ 20,222.1 $ 1,327.6 $ 1,611.4 $ 261.2 $ 116.0 $ 23,538.3 (1) At December 31, 2017 Other Consumer Banking loans consisted of SBA loans. (2) At December 31, 2016 Other Consumer Banking loans consisted of SBA loans ($ 370.1 million ) and Private Banking loans ($ 38.3 million ). For consumer loans, the Company monitors credit risk based on indicators such as delinquencies and LTV, which the Company believes are relevant credit quality indicators. LTV refers to the ratio comparing the loan's unpaid principal balance to the property's collateral value. We examine LTV migration and stratify LTV into categories to monitor the risk in the loan classes. The following table provides a summary of the consumer portfolio credit quality. The amounts represent the carrying value, which differ from unpaid principal balances, and include the premiums or discounts and the accretable yield and non-accretable difference for PCI loans recorded in purchase accounting. Included in the consumer loans are "covered loans" for which the Company can be reimbursed for a substantial portion of future losses under the terms of loss sharing agreements with the FDIC. Covered loans are limited to the Other Consumer Banking and Legacy Consumer Mortgage ("LCM") division. Covered Loans are discussed further in Note 5 — Indemnification Assets. Included in the consumer loan balances as of December 31, 2017 and December 31, 2016 were loans with terms that permitted negative amortization with an unpaid principal balance of $484 million and $761 million , respectively. The table below summarizes the Consumer loan LTV distribution and covered loan balances. Consumer Loan LTV Distributions (dollars in millions) Single Family Residential Reverse Mortgage (2) Covered Loans Non-covered Loans Non-covered loans Non-PCI PCI Non-PCI PCI Total Single Family Residential Covered Loans Non-PCI Non-PCI PCI Total Reverse Mortgages Total Consumer Loans December 31, 2017 Greater than 125% $ 2.7 $ 160.0 $ 7.7 $ — $ 170.4 $ — $ — $ — $ — $ 170.4 101% — 125% 6.4 291.5 4.4 — 302.3 — — — — 302.3 80% — 100% 77.4 566.2 137.3 — 780.9 — — — — 780.9 Less than 80% 1,306.1 878.1 2,089.7 7.7 4,281.6 — — — — 4,281.6 Not Applicable (1) — — 0.8 — 0.8 — — — — 0.8 Total $ 1,392.6 $ 1,895.8 $ 2,239.9 $ 7.7 $ 5,536.0 $ — $ — $ — $ — $ 5,536.0 December 31, 2016 Greater than 125% $ 2.2 $ 261.4 $ 12.3 $ — $ 275.9 $ 0.6 $ 8.8 $ 33.8 $ 43.2 $ 319.1 101% — 125% 4.7 443.7 13.6 — 462.0 1.2 12.7 7.9 21.8 483.8 80% — 100% 226.6 588.1 40.5 — 855.2 24.0 42.3 7.5 73.8 929.0 Less than 80% 1,515.6 872.4 1,713.1 9.2 4,110.3 405.4 304.9 9.8 720.1 4,830.4 Not Applicable (1) — — 2.9 — 2.9 — — — — 2.9 Total $ 1,749.1 $ 2,165.6 $ 1,782.4 $ 9.2 $ 5,706.3 $ 431.2 $ 368.7 $ 59.0 $ 858.9 $ 6,565.2 (1) Certain Consumer Loans do not have LTV's, including the Credit Card portfolio. The Credit Card portfolio was not significant at December 31, 2017 and 2016. (2) Reverse mortgage loans transferred to AHFS are excluded from the table above. As of December 31, 2017 these loans had a total carrying value of $ 861.0 million , of which $ 411.0 million were covered loans. Past Due and Non-accrual Loans The table that follows presents portfolio delinquency status, regardless of accrual/non-accrual classification: Loans and Held for Sale Loans — Delinquency Status (dollars in millions) Past Due 30 — 59 Days Past Due 60 — 89 Days Past Due 90 Days or Greater Total Past Due Current (1) PCI Loans (2) Total December 31, 2017 Commercial Banking Commercial Finance $ 4.5 $ — $ 49.3 $ 53.8 $ 9,987.9 $ 10.6 $ 10,052.3 Real Estate Finance 8.7 — 4.1 12.8 5,532.3 45.1 5,590.2 Business Capital 172.2 33.4 19.1 224.7 7,355.1 — 7,579.8 Rail 3.9 1.4 0.8 6.1 97.7 — 103.8 Total Commercial Banking 189.3 34.8 73.3 297.4 22,973.0 55.7 23,326.1 Consumer Banking Legacy Consumer Mortgages 26.7 7.6 34.8 69.1 1,358.5 1,903.5 3,331.1 Other Consumer Banking 9.6 0.5 0.4 10.5 3,476.4 2.2 3,489.1 Total Consumer Banking 36.3 8.1 35.2 79.6 4,834.9 1,905.7 6,820.2 Non-Strategic Portfolios 1.8 7.7 9.4 18.9 44.4 — 63.3 Total $ 227.4 $ 50.6 $ 117.9 $ 395.9 $ 27,852.3 $ 1,961.4 $ 30,209.6 December 31, 2016 Commercial Banking Commercial Finance $ 21.4 $ — $ 17.6 $ 39.0 $ 10,193.8 $ 42.7 $ 10,275.5 Real Estate Finance 0.1 — — 0.1 5,496.0 70.5 5,566.6 Business Capital 143.6 42.4 16.3 202.3 6,771.8 — 6,974.1 Rail 5.9 0.6 2.3 8.8 94.9 — 103.7 Total Commercial Banking 171.0 43.0 36.2 250.2 22,556.5 113.2 22,919.9 Consumer Banking Legacy Consumer Mortgages 22.6 6.1 36.6 65.3 2,563.6 2,233.8 4,862.7 Other Consumer Banking 7.4 4.9 0.6 12.9 2,163.4 2.8 2,179.1 Total Consumer Banking 30.0 11.0 37.2 78.2 4,727.0 2,236.6 7,041.8 Non-Strategic Portfolios 3.0 1.1 7.0 11.1 198.9 — 210.0 Total $ 204.0 $ 55.1 $ 80.4 $ 339.5 $ 27,482.4 $ 2,349.8 $ 30,171.7 (1) Due to their nature, reverse mortgage loans are included in Current, as they do not have contractual payments due at a specified time. (2) PCI loans are written down at acquisition to their fair value using an estimate of cash flows deemed to be collectible. Accordingly, such loans are no longer classified as past due or non-accrual even though they may be contractually past due as we expect to fully collect the new carrying values of these loans. 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 (1) well-secured and in the process of collection or (2) real estate mortgage loans or consumer loans exempt under regulatory rules from being classified as nonaccrual until later delinquency, usually 120 days past due. The following table sets forth non-accrual loans, assets received in satisfaction of loans (repossessed assets and OREO) and loans 90 days or more past due and still accruing. Loans on Non-Accrual Status (dollars in millions) December 31, 2017 December 31, 2016 Held for Investment Held for Sale Total Held for Investment Held for Sale Total Commercial Banking Commercial Finance $ 134.8 $ — $ 134.8 $ 156.7 $ 32.1 $ 188.8 Real Estate Finance 2.8 — 2.8 20.4 — 20.4 Business Capital 53.2 — 53.2 41.7 — 41.7 Total Commercial Banking 190.8 — 190.8 218.8 32.1 250.9 Consumer Banking Legacy Consumer Mortgages 19.9 — 19.9 17.3 — 17.3 Other Consumer Banking 0.4 — 0.4 0.1 — 0.1 Total Consumer Banking 20.3 — 20.3 17.4 — 17.4 Non-Strategic Portfolios — 9.8 9.8 — 10.3 10.3 Total $ 211.1 $ 9.8 $ 220.9 $ 236.2 $ 42.4 $ 278.6 Repossessed assets and OREO 54.6 72.7 Total non-performing assets $ 275.5 $ 351.3 Commercial loans past due 90 days or more accruing $ 11.7 $ 7.2 Consumer loans past due 90 days or more accruing 20.2 24.8 Total Accruing loans past due 90 days or more $ 31.9 $ 32.0 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. Reverse mortgages are not included in the non-accrual balances due to the nature of the mortgage product. Loans in Process of Foreclosure The table below summarizes the residential mortgage loans in the process of foreclosure and OREO: (dollars in millions) December 31, 2017 December 31, 2016 PCI $ 133.7 $ 201.7 Non-PCI 140.9 106.3 Loans in process of foreclosure $ 274.6 $ 308.0 OREO $ 52.1 $ 69.9 As of December 31, 2017, the table included $ 122.5 million of reverse mortgage loans in the process of foreclosure that were transferred from AHFI to AHFS in September 2017 and $ 21 million of reverse mortgage OREO. Impaired Loans The following table contains information about impaired loans and the related allowance for loan losses by class, exclusive of loans that were identified as impaired at the Acquisition Date for which the Company is applying the income recognition and disclosure guidance in ASC 310-30 ( Loans and Debt Securities Acquired with Deteriorated Credit Quality ), which are disclosed further below in this note. Impaired loans exclude PCI loans. Impaired Loans (dollars in millions) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment (3) December 31, 2017 With no related allowance recorded: Commercial Banking Commercial Finance $ 51.9 $ 72.7 $ — $ 59.9 Business Capital 11.7 13.4 — 5.7 Real Estate Finance — — — 0.4 With an allowance recorded: Commercial Banking Commercial Finance 95.9 96.1 21.3 136.6 Business Capital 10.5 10.5 4.3 14.2 Real Estate Finance 2.7 2.8 0.4 5.6 Total Impaired Loans (1) 172.7 195.5 26.0 222.4 Total Loans Impaired at Acquisition Date (2) 1,961.4 2,870.2 19.1 2,168.8 Total $ 2,134.1 $ 3,065.7 $ 45.1 $ 2,391.2 December 31, 2016 With no related allowance recorded: Commercial Banking Commercial Finance $ 54.3 $ 72.2 $ — $ 29.5 Business Capital 0.5 1.8 — 5.1 Real Estate Finance 0.7 0.7 — 1.3 With an allowance recorded: Commercial Banking Commercial Finance 143.0 146.2 25.5 132.1 Business Capital 6.6 6.6 4.2 8.2 Real Estate Finance 16.7 16.8 4.0 5.2 Total Impaired Loans (1) 221.8 244.3 33.7 181.4 Total Loans Impaired at Acquisition Date (2) 2,349.8 3,440.7 13.6 2,504.4 Total $ 2,571.6 $ 3,685.0 $ 47.3 $ 2,685.8 (1) Interest income recorded for the years ended December 31, 2017 and December 31, 2016 while the loans were impaired were $2.4 million and $1.6 million , of which $0.0 million and $0.6 million was interest recognized using cash-basis method of accounting for each year, respectively. (2) Details of loans that were identified as impaired at the Acquisition Date are presented under Loans Acquired with Deteriorated Credit Quality. (3) Average recorded investment for the years ended December 31, 2017 and 2016. Impairment occurs when, based on current information and events, it is probable that CIT will be unable to collect all amounts due according to contractual terms of the agreement. For commercial loans, the Company has established review and monitoring procedures designed to identify, as early as possible, customers that are experiencing financial difficulty. Credit risk is captured and analyzed based on the Company's internal probability of obligor default (PD) and loss given default (LGD) ratings. A PD rating is determined by evaluating borrower credit-worthiness, including analyzing credit history, financial condition, cash flow adequacy, financial performance and management quality. An LGD rating is predicated on transaction structure, collateral valuation and related guarantees or recourse. Further, related considerations in determining probability of collection include the following: • Instances where the primary source of payment is no longer sufficient to repay the loan in accordance with terms of the loan document; • Lack of current financial data related to the borrower or guarantor; • Delinquency status of the loan; • Borrowers experiencing problems, such as operating losses, marginal working capital, inadequate cash flow, excessive financial leverage or business interruptions; • Loans secured by collateral that is not readily marketable or that has experienced or is susceptible to deterioration in realizable value; and • Loans to borrowers in industries or countries experiencing severe economic instability. A shortfall between the estimated value and recorded investment in the loan is reported in the provision for credit losses. In instances when the Company measures impairment based on the present value of expected future cash flows, the change in present value is reported in the provision for credit losses. The following summarizes key elements of the Company's policy regarding the determination of collateral fair value in the measurement of impairment: • "Orderly liquidation value" is the basis for collateral valuation; • Appraisals are updated annually or more often as market conditions warrant; and • Appraisal values are discounted in the determination of impairment if the: • appraisal does not reflect current market conditions; or • collateral consists of inventory, accounts receivable, or other forms of collateral that may become difficult to locate, or collect or may be subject to pilferage in a liquidation. Loans Acquired with Deteriorated Credit Quality For purposes of this presentation, the Company is applying the income recognition and disclosure guidance in ASC 310-30 ( Loans and Debt Securities Acquired with Deteriorated Credit Quality ) to loans that were identified as impaired as of the acquisition date of OneWest Bank. PCI loans were initially recorded at estimated fair value with no allowance for loan losses carried over, since the initial fair values reflected credit losses expected to be incurred over the remaining lives of the loans. The acquired loans are subject to the Company's internal credit review. See Note 4 — Allowance for Loan Losses. Purchased Credit Impaired Loans (dollars in millions) December 31, 2017 December 31, 2016 Unpaid Principal Balance Carrying Value Allowance for Loan Losses Unpaid Principal Balance Carrying Value Allowance for Loan Losses Commercial Banking Commercial Finance $ 16.4 $ 10.6 $ 0.7 $ 70.0 $ 42.7 $ 2.4 Real Estate Finance 60.1 45.1 7.0 108.1 70.5 4.9 Consumer Banking Other Consumer Banking 3.0 2.2 — 3.7 2.8 — Legacy Consumer Mortgages 2,790.7 1,903.5 11.4 3,258.9 2,233.8 6.3 $ 2,870.2 $ 1,961.4 $ 19.1 $ 3,440.7 $ 2,349.8 $ 13.6 The following table summarizes commercial PCI loans, which are monitored for credit quality based on internal risk classifications. See previous table Consumer Loan LTV Distributions for credit quality metrics on consumer PCI loans. December 31, 2017 December 31, 2016 (dollars in millions) Non-criticized Criticized Total Non-criticized Criticized Total Commercial Finance $ — $ 10.6 $ 10.6 $ 5.4 $ 37.3 $ 42.7 Real Estate Finance 21.8 23.3 45.1 35.6 34.9 70.5 Total $ 21.8 $ 33.9 $ 55.7 $ 41.0 $ 72.2 $ 113.2 Accretable Yield The excess of cash flows expected to be collected over the recorded investment (estimated fair value at acquisition) of the PCI loans represents the accretable yield and is recognized in interest income on an effective yield basis over the remaining life of the loan, or pools of loans. The accretable yield is adjusted for changes in interest rate indices for variable rate PCI loans, changes in prepayment assumptions and changes in expected principal and interest payments and collateral values. Further, if a loan within a pool of loans is modified, the modified loan remains part of the pool of loans. Changes in the Accretable Yield for PCI Loans (dollars in millions) Years Ended December 31, 2017 2016 2015 Balance at beginning of the year (1) $ 1,261.4 $ 1,299.1 $ 1,254.8 Accretion into interest income (204.6 ) (208.3 ) (76.2 ) Reclassification from non-accretable difference 38.5 213.7 133.2 Disposals and Other (31.6 ) (43.1 ) (12.7 ) Balance at end of the year $ 1,063.7 $ 1,261.4 $ 1,299.1 (1) For year ended December 31, 2015, the beginning balance is as of August 3, 2015, the acquisition date of OneWest Bank. Troubled Debt Restructurings 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 troubled debt restructurings (TDRs). CIT uses a consistent methodology across all loans to determine if a modification is with a borrower that has been determined to be in financial difficulty and was granted a concession. Specifically, the Company's policies on TDR identification include the following examples of indicators used to determine whether the borrower is in financial difficulty: • Borrower is in default with CIT or other material creditor • Borrower has declared bankruptcy • Growing doubt about the borrower's ability to continue as a going concern • Borrower has (or is expected to have) insufficient cash flow to service debt • Borrower is de-listing securities • Borrower's inability to obtain funds from other sources • Breach of financial covenants by the borrower. If the borrower is determined to be in financial difficulty, then CIT utilizes the following criteria to determine whether a concession has been granted to the borrower: • Assets used to satisfy debt are less than CIT's recorded investment in the loan • Modification of terms — interest rate changed to below market rate • Maturity date extension at an interest rate less than market rate • The borrower does not otherwise have access to funding for debt with similar risk characteristics in the market at the restructured rate and terms • Capitalization of interest • Increase in interest reserves • Conversion of credit to Payment-In-Kind (PIK) • Delaying principal and/or interest for a period of three months or more • Partial forgiveness of the balance. Modified loans that meet the definition of a TDR are subject to the Company's standard impaired loan policy, namely that non-accrual loans in excess of $500,000 are individually reviewed for impairment, while non-accrual loans less than $500,000 are considered as part of homogenous pools and are included in the determination of the non-specific allowance. We may require some consumer borrowers experiencing financial difficulty to make trial payments generally for a period of three to four months, according to the terms of a planned permanent modification, to determine if they can perform according to those terms. These arrangements represent trial modifications. While loans are in trial payment programs, their original terms are not considered modified and they continue to advance through delinquency status and accrue interest according to their original terms. The planned modifications for these arrangements predominantly involve interest rate reductions or other interest rate concessions; however, the exact concession type and resulting financial effect are usually not finalized and do not take effect until the loan is permanently modified. The trial period terms are developed in accordance with our proprietary programs or the U.S. Treasury's Making Homes Affordable programs for real estate 1-4 family first lien (i.e. Home Affordable Modification Program — HAMP) and junior lien (i.e. Second Lien Modification Program — 2MP) mortgage loans. HAMP expired on December 31, 2017 , which was the last day to submit an application. At December 31, 2017 , the loans in trial modification period were $0.3 million under HAMP and $12.2 million under proprietary programs. Trial modifications with a recorded investment of $12.3 million at December 31, 2017 were accruing loans and $0.2 million were non-accruing loans. At December 31, 2016, the loans in trial modification period were $ 36.4 million under HAMP, $ 0.1 million under 2MP and $ 3.0 million under proprietary programs. Trial modifications with a recorded investment of $ 38.1 million at December 31, 2016 were accruing loans and $ 1.4 million were non-accruing loans. Our experience is that substantially all of the mortgages that enter a trial payment period program are successful in completing the program requirements and are then permanently modified at the end of the trial period. Our allowance process considers the impact of those modifications that are probable to occur. The recorded investment of TDRs, excluding those classified as PCI and those within a trial modification period discussed in the preceding paragraph, at December 31, 2017 and December 31, 2016 , was $103.5 million and $82.3 million , of which 63% and 41% , respectively, were on non-accrual. Commercial Banking and Consumer Banking loans accounted for 83% and 17% , respectively of the total TDRs at December 31, 2017 . At December 31, 2016 , Commercial Banking and Consumer banking loans accounted for 85% and 15% , respectively of total TDRs. There were $13.4 million and $5.4 million , as of December 31, 2017 and 2016 , respectively, of commitments to lend additional funds to borrowers whose loan terms have been modified in TDRs. The recorded investment related to modifications qualifying as TDRs that occurred during the years ended December 31, 2017 and 2016 were $92.5 million and $80.5 million , respectively. The recorded investment at the time of default of TDRs that experienced a payment default (payment default is one missed payment), during the years ended December 31, 2017 and 2016 , and for which the payment default occurred within one year of the modification totaled $47.0 million and $11.3 million , respectively. The December 31, 2017 defaults related to Commercial Banking and Consumer Banking, were 93% and 7% , respectively. The financial impact of the various modification strategies that the Company employs in response to borrower difficulties is described below. While the discussion focuses on the 2017 amounts, the overall nature and impact of modification programs were comparable in the prior year. • The nature of modifications qualifying as TDR's based upon recorded investment at December 31, 2017 was comprised of payment deferrals for 31% and covenant relief and/or other for 69% . For December 31, 2016 TDR recorded investment was comprised of payment deferrals for 12% and covenant relief and/or other for 88% . • 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 quarters ended December 31, 2017 and 2016 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 the years ended December 31, 2017 and 2016 was not significant, as debt forgiveness is a relatively small component of the Company's modification programs; and • 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. Reverse Mortgages At December 31, 2017 reverse mortgage loans of $861.0 million were classified as assets held for sale within continuing operations related to the Financial Freedom Transaction; of which $724.7 million related to uninsured proprietary reverse mortgage loans and the remaining related to FHA insured HECM loans. At December 31, 2016, the reverse mortgage loans had an outstanding balance of $859.0 million , of which $769.6 million related to the uninsured proprietary reverse mortgage loans. The uninsured reverse mortgage portfolio consists of approximately 1,500 loans with an unpaid principal balance of $944.0 million at December 31, 2017 . The uninsured reverse mortgage portfolio consisted of approximately 1,700 loans with an average borrowers' age of 83 years old and an unpaid principal balance of $1,027.9 million at December 31, 2016 . There is currently over collateralization in the portfolio, as the realizable collateral value (the lower of collectible principal and interest, or estimated value of the home) exceeds the outstanding book balance at December 31, 2017 and 2016 . From the acquisition date through December 31, 2017 , any changes to the portfolio value as a result of re-estimated cash flows due to changes in actuarial assumptions or actual or expected appreciation or depreciation in property values was immaterial to the portfolio as a whole. See Note 1 — Business and Summary of Significant Accounting Policies for further details. Serviced Loans In conjunction with the OneWest Transaction, the Company services HECM reverse mortgage loans sold to Agencies (Fannie Mae) and securitized in GNMA HMBS pools. HECM loans transferred into the HMBS program have not met all of the requirements for sale accounting and, therefore, the Company has accounted for these transfers as a financing transaction with the loans remaining on the Company's statement of financial position and the proceeds received are recorded as a secured borrowing. The pledged loans and secured borrowings are reported in Assets of discontinued operations and Liabilities of discontinued operations, respectively. See Note 2 — Acquisition and Disposition Activities. As servicer of HECM loans, the Company is required to repurchase loans out of the HMBS pool upon completion of foreclosure or once the outstanding principal balance is equal to or greater than 98% of the maximum claim amount. These HECM loans are repurchased at a price equal to the unpaid principal balance outstanding on the loan plus accrued interest. The repurchase transaction represents extinguishment of debt. As a result, the HECM loan basis and accounting methodology (retrospective effective interest) would carry forward. However, if the Company classifies these repurchased loans as AHFS, that classification would result in a new accounting methodology. Loans classified as AHFS are carried at LOCOM pending assignment to the Department of Housing and Urban Development ("HUD"). Loans classified as HFI are not assignable to HUD and are subject to periodic impairment assessment. Although permitted under the GNMA HMBS program, the Company does not conduct optional repurchases upon the loan reaching a maturity event (i.e. borrower's death or the property ceases to be the borrower's principal residence). Upon investor consent to servicing transfer in connection with the Financial Freedom Transaction, CIT shall no longer have this obligation. Refer to Note 2 - Discontinued Operations . In the year ended December 31, 2017 , the Company repurchased $118.0 million (unpaid principal balance) of additional HECM loans, all of which were classified as AHFS resulting from the transfer of all reverse mortgage loans to AHFS in connection with the Financial Freedom Transaction. As of December 31, 2017 , the Company had an outstanding balance of $136.3 million of HECM loans, of which $177.6 million (unpaid principal balance) is classified as AHFS. As of December 31, 2016 , the Company had an outstanding balance of $122.2 million of HECM loans, of which $32.8 million (unpaid principal balance) were classified as AHFS, $68.1 million were classified as HFI accounted for as PCI loans with an associated remaining purchase discount of $9.1 million . Serviced loans also included $30.4 million that were classified as HFI, accounted for under the effective yield method and have no remaining purchase discount. |
Allowance For Loan Losses
Allowance For Loan Losses | 12 Months Ended |
Dec. 31, 2017 | |
Allowance For Loan Losses [Abstract] | |
Allowance For Loan Losses | ALLOWANCE FOR LOAN LOSSES See Note 1 for the Company's methodology for recording the allowance for loan losses. Allowance for Loan Losses and Recorded Investment in Loans (dollars in millions) Commercial Banking Consumer Banking Total Year Ended December 31, 2017 Balance — December 31, 2016 $ 408.4 $ 24.2 $ 432.6 Provision for credit losses 88.7 25.9 114.6 Other (1) (0.8 ) (0.1 ) (0.9 ) Gross charge-offs (2) (115.2 ) (22.5 ) (137.7 ) Recoveries 21.1 1.4 22.5 Balance — December 31, 2017 $ 402.2 $ 28.9 $ 431.1 Allowance balance at December 31, 2017 Loans individually evaluated for impairment $ 26.0 $ — $ 26.0 Loans collectively evaluated for impairment 368.5 17.5 386.0 Loans acquired with deteriorated credit quality (3) 7.7 11.4 19.1 Allowance for loan losses $ 402.2 $ 28.9 $ 431.1 Other reserves (1) $ 44.5 $ — $ 44.5 Finance receivables at December 31, 2017 Loans individually evaluated for impairment $ 172.7 $ — $ 172.7 Loans collectively evaluated for impairment 22,930.9 4,048.9 26,979.8 Loans acquired with deteriorated credit quality (3) 55.7 1,905.7 1,961.4 Ending balance $ 23,159.3 $ 5,954.6 $ 29,113.9 Percent of loans to total loans 79.5 % 20.5 % 100 % Year Ended December 31, 2016 Balance — December 31, 2015 $ 336.8 $ 10.2 $ 347.0 Provision for credit losses 183.0 11.7 194.7 Other (1) 0.2 2.0 2.2 Gross charge-offs (2) (133.8 ) (2.8 ) (136.6 ) Recoveries 22.2 3.1 25.3 Balance — December 31, 2016 $ 408.4 $ 24.2 $ 432.6 Allowance balance at December 31, 2016 Loans individually evaluated for impairment $ 33.7 $ — $ 33.7 Loans collectively evaluated for impairment 367.4 17.9 385.3 Loans acquired with deteriorated credit quality (3) 7.3 6.3 13.6 Allowance for loan losses $ 408.4 $ 24.2 $ 432.6 Other reserves (1) $ 43.6 $ 0.1 $ 43.7 Finance receivables at December 31, 2016 Loans individually evaluated for impairment $ 221.8 $ — $ 221.8 Loans collectively evaluated for impairment 22,227.3 4,737.0 26,964.3 Loans acquired with deteriorated credit quality (3) 113.2 2,236.6 2,349.8 Ending balance $ 22,562.3 $ 6,973.6 $ 29,535.9 Percentage of loans to total loans 76.4 % 23.6 % 100 % (1) "Other reserves" represents credit loss reserves for unfunded lending commitments, letters of credit and for deferred purchase agreements, all of which is recorded in Other liabilities. "Other" also includes allowance for loan losses associated with loan sales and foreign currency translations. (2) Gross charge-offs of amounts specifically reserved in prior periods included $45.9 million and $35.8 million charged directly to the Allowance for loan losses for the years ended December 31, 2017 and December 31, 2016 , respectively. These charge offs related to Commercial Banking for both years. (3) Represents loans considered impaired as part of the OneWest transaction and are accounted for under the guidance in ASC 310-30 (Loans and Debt Securities Acquired with Deteriorated Credit Quality). |
Indemnification Assets
Indemnification Assets | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Indemnification Assets | INDEMNIFICATION ASSETS The Company acquired the indemnifications provided by the FDIC under the loss sharing agreements from previous transactions entered into by OneWest Bank. The loss share agreements with the FDIC relates to the FDIC-assisted transactions of IndyMac in March 2009 (“IndyMac Transaction”), First Federal in December 2009 (“First Federal Transaction”) and La Jolla in February 2010 (“La Jolla Transaction”). The loss sharing agreements generally require CIT Bank, N.A. to obtain FDIC approval prior to transferring or selling loans and related indemnification assets. Eligible losses are submitted to the FDIC for reimbursement when a qualifying loss event occurs (e.g., loan modification, charge-off of loan balance or liquidation of collateral). Reimbursements approved by the FDIC are received usually within 60 days of submission. In connection with the lndyMac, First Federal and La Jolla Transactions, the FDIC indemnified the Company against certain future losses for covered loans. For the IndyMac Transaction, First Federal Transaction and La Jolla Transaction, the loss share agreement covering SFR mortgage loans is set to expire March 2019 , December 2019 and February 2020 , respectively. As of December 31, 2017 and 2016, the recognized indemnification asset is limited to the IndyMac Transaction. No indemnification asset was recognized in connection with the First Federal Transaction and an insignificant indemnification asset balance was associated with the La Jolla Transaction. In addition, in connection with the IndyMac Transaction, the Company recorded an indemnification receivable for estimated reimbursements due from the FDIC for loss exposure arising from breach in origination and servicing obligations associated with covered reverse mortgage loans sold to the Agencies prior to March 2009 pursuant to the loss share agreement with the FDIC. Below provides the carrying value of the recognized indemnification assets and related receivable/payable balance with the FDIC associated with indemnified losses under the IndyMac Transaction. Indemnification Assets — IndyMac Transaction (dollars in millions) Years Ended December 31, 2017 2016 Loan indemnification (1) $ 113.5 $ 223.0 Reverse mortgage indemnification (2) — 10.4 Agency claims indemnification (3) 28.9 108.0 Total $ 142.4 $ 341.4 Receivable with the FDIC $ 9.2 $ 12.7 (1) As of December 31, 2017 , the carrying value of the loan indemnification decreased by $109.5 million from December 31, 2016 , which comprised of $ 53.1 million in claim submissions filed with the FDIC during the period and $ 56.4 million in other (yield and provision for credit losses adjustments). (2) During the year ended December 31, 2017, the reverse mortgage indemnification was impaired by its full value within other non-interest income in connection with the agreement to sell the reverse mortgage portfolio as part of the Financial Freedom Transaction. (3) During the year ended December 31, 2017, the Company and the FDIC resolved the selling and servicing-related obligations of IndyMac for certain reverse mortgage loans with Fannie Mae. In connection with the settlement, the Company released the FDIC from its indemnification obligation to CIT with respect to the Fannie Mae settled loans, which reduced the indemnification receivable by $ 77 million . The amount of net amortization recognized on the indemnification asset from the IndyMac Transaction was $47 million and $22 million for the years ended December 31, 2017 and 2016 , respectively. Due to the improving credit quality of the indemnified PCI loans, the decrease in expected credit losses from the indemnified PCI loans results in a decline in expected reimbursements from the FDIC for qualifying losses. Consistent with mirror accounting, the declines in expected cash flows from the FDIC result in a higher negative yield on the indemnification asset applied prospectively over the remaining contract period. The Company separately recognizes a net receivable (recorded in other assets) for the claim submissions filed with the FDIC and a net payable (recorded in other liabilities) for the remittances due to the FDIC for previously submitted claims that were later recovered by investor ( e.g., guarantor payments, recoveries). IndyMac Transaction There are three components to the Indy Mac indemnification program described below: 1. SFR Mortgages, 2. Reverse Mortgages, and 3. Certain Servicing Obligations. Single Family Residential (SFR) Mortgage Loan Indemnification Asset The FDIC indemnifies the Company against certain credit losses on SFR mortgage loans based on specified thresholds. Prior to the OneWest acquisition, the cumulative losses of the SFR portfolio exceeded the First Loss Tranche ( $2.551 billion ) with the excess losses reimbursed 80% by the FDIC. As of December 31, 2017 , the Company projects the cumulative losses will reach the final loss threshold of "meets or exceeds stated threshold" ( $3.826 billion ) in May 2018 at which time the excess losses will be reimbursed 95% by the FDIC. The following table summarizes the submission of qualifying losses (net of recoveries) for reimbursement from the FDIC since inception of the loss share agreement as of December 31, 2017 and 2016 , respectively: Submission of Qualifying Losses for Reimbursement (dollars in millions) December 31, 2017 December 31, 2016 Unpaid principal balance $ 3,196.5 $ 3,832.1 Cumulative losses incurred 3,800.6 3,727.8 Cumulative claims 3,794.7 3,722.9 Cumulative reimbursement 939.9 893.7 Reverse Mortgage Indemnification Asset The FDIC indemnifies the Company against losses on the first $200.0 million of funds advanced post March 2009, and to fund any advances above $200.0 million . As of December 31, 2017 and 2016 , $134.4 million and $145.2 million , respectively, had been advanced on the reverse mortgage loans post March 2009. Prior to the OneWest Transaction, the cumulative loss submissions and reimbursements totaled $1.8 million from the FDIC. From August 3, 2015 (the date of OneWest Transaction) through December 31, 2017 , the Company was reimbursed $2.9 million from the FDIC for the cumulative losses incurred. As of December 31, 2017, the reverse mortgage indemnification asset was zero . Indemnification from Certain Servicing Obligations Subject to certain requirements and limitations, the FDIC agreed to indemnify the Company, among other things, for third party claims from the Agencies related to the selling representations and warranties of IndyMac as well as liabilities arising from the acts or omissions, including, without limitation, breaches of servicer obligations of IndyMac for SFR mortgage loans and reverse mortgage loans as follows: 1) SFR mortgage loans sold to the Agencies The FDIC indemnification for third party claims by the Agencies for servicer obligations expired as of the acquisition date; however, for any claims, issues or matters relating to the servicing obligations that are known or identified as of the end of the expired term, the FDIC indemnification protection continues until resolution of such claims, issues or matters. Prior to the OneWest acquisition, the cumulative loss submissions and reimbursements totaled $5.7 million from the FDIC to cover third party claims made by the Agencies for SFR loans. No material claim submission was made post acquisition. During the year ended December 31, 2017, the Company and the FDIC resolved the selling and servicing-related obligations of IndyMac for SFR mortgage loans with Fannie Mae and the Company released the FDIC from its indemnification obligation to CIT with respect to the settled loans. As of December 31, 2017, the indemnification receivable related to pre-March 2009 servicer obligations for SFR mortgage loans was zero . 2) Reverse mortgage loans sold to the Agencies The FDIC indemnifies the Company through March 2019 for third party claims made by the Agencies relating to any liabilities or obligations imposed on the seller of HECM loans acquired by the Agencies from IndyMac resulting from servicing errors or servicing obligations prior to March 2009. Prior to the OneWest Transaction, the cumulative loss submissions totaled $11.2 million and reimbursements totaled $10.7 million from the FDIC to cover third party claims made by the Agencies for reverse mortgage loans. No material claim submission was made post acquisition. During the year ended December 31, 2017, the Company and the FDIC resolved the selling and servicing-related obligations of IndyMac for certain reverse mortgage loans with Fannie Mae. As of December 31, 2017, the indemnification receivable from the FDIC was $ 29 million related to the pre-March 2009 servicer obligations for certain reverse mortgage loans. First Federal Transaction The FDIC agreed to indemnify the Company against certain losses on SFR and commercial HFI loans based on established thresholds. As of December 31, 2017 , the loss share agreements covering the SFR mortgage loans remain in effect (expiring in December 2019 ) while the agreement covering commercial loans expired (in December 2014 ). However, pursuant to the terms of the shared-loss agreement, the loss recovery provisions for commercial loans extend for three years past the expiration date (December 2017). The loss thresholds apply to the covered loans collectively. Pursuant to the loss share agreement, the first $932 million (First Loss Tranche) of cumulative losses are borne by the Company without reimbursement by the FDIC. As the Company does not project to reach the required threshold for reimbursement, no indemnification asset was recognized in connection with the First Federal Transaction. Separately, as part of the loss sharing agreement, the Company is required to make a true-up payment to the FDIC in the event that losses do not exceed a specified level by December 2019. As the Company does not project FDIC reimbursement, there is no indemnification asset and no true-up payment required for the First Federal portfolio. La Jolla Transaction The FDIC agreed to indemnify the Company against certain losses on SFR and commercial loans HFI based on established thresholds. As of December 31, 2017 , the loss share agreement covering the SFR mortgage loans remain in effect (expiring in February 2020 ) while the agreement covering commercial loans expired (in March 2015). However, pursuant to the terms of the loss share agreement, the loss recovery provisions for commercial loans extend for three years past the expiration date (March 2018). The loss thresholds apply to the covered loans collectively. Pursuant to the loss share agreement, the Company's cumulative losses since the acquisition date by OneWest Bank are reimbursed by the FDIC at 80% until the stated threshold ( $1.007 billion ) is met. Separately, as part of the loss share agreement with La Jolla, the Company is required to make a true-up payment to the FDIC in the event that losses do not exceed a specified level by the tenth anniversary of the agreement ( February 2020 ). The Company currently expects that such payment will be required based upon its forecasted loss estimates for the La Jolla portfolio as the actual and estimated cumulative losses of the acquired covered assets are projected to be lower than the cumulative losses. As of December 31, 2017 and 2016 , an obligation of $65.1 million and $61.9 million , respectively, has been recorded as a FDIC true-up liability for the contingent payment measured at estimated fair value. Refer to Note 13 — Fair Value for further discussion. |
Operating Lease Equipment
Operating Lease Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Leases, Operating [Abstract] | |
Operating Lease Equipment | OPERATING LEASE EQUIPMENT The following table provides the net book value (net of accumulated depreciation of $1.0 billion at December 31, 2017 and $0.9 billion at December 31, 2016 ) of operating lease equipment, by equipment type. Operating Lease Equipment (dollars in millions) December 31, 2017 December 31, 2016 Railcars and locomotives $ 6,260.5 $ 7,116.5 Other equipment 478.4 369.6 Total (1) $ 6,738.9 $ 7,486.1 (1) Includes equipment off-lease of $488.2 million and $823.5 million at December 31, 2017 and 2016 , respectively, primarily consisting of rail assets. The following table presents future minimum lease rentals due on non-cancellable operating leases at December 31, 2017. Excluded from this table are variable rentals calculated on asset usage levels, re-leasing rentals, and expected sales proceeds from remarketing equipment at lease expiration, all of which are components of operating lease profitability. Minimum Lease Rentals Due (dollars in millions) Years Ended December 31, 2018 $ 675.7 2019 487.2 2020 328.8 2021 198.6 2022 107.9 Thereafter 73.1 Total $ 1,871.3 |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES Investments include debt and equity securities. The Company's debt securities include residential mortgage-backed securities ("MBS"), U.S. Government Agency securities, U.S. Treasury securities, and supranational securities. Equity securities include common stock and warrants, along with restricted stock in the FHLB and FRB. Investment Securities (dollars in millions) December 31, 2017 December 31, 2016 Available-for-sale securities Debt securities $ 6,123.6 $ 3,674.1 Equity securities 44.7 34.1 Held-to-maturity securities Debt securities (1) — 243.0 Securities carried at fair value with changes recorded in net income Debt securities 0.4 283.5 Non-marketable investments (2) 301.2 256.4 Total investment securities $ 6,469.9 $ 4,491.1 (1) Recorded at amortized cost. (2) Non-marketable investments include securities of the FRB and FHLB carried at cost of $258.9 million at December 31, 2017 and $239.7 million at December 31, 2016 . The remaining non-marketable investments include ownership interests greater than 3% in limited partnership investments that are accounted for under the equity method, other investments carried at cost, which include qualified Community Reinvestment Act (CRA) investments, equity fund holdings and shares issued by customers during loan work out situations or as part of an original loan investment, totaling $42.3 million and $16.7 million at December 31, 2017 and December 31, 2016 , respectively. CIT early adopted ASU 2017-12, Derivatives and Hedging (Topic 815) -Targeted Improvements to Accounting for Hedging Activities, in the fourth quarter of 2017, effective January 01, 2017. As a result of the adoption, CIT reclassified HTM debt securities with an amortized cost of $ 207 million , as of the date of transfer, to AFS after evaluating and confirming that these debt securities met the eligibility criteria. For further discussion, see Note 1- Business and Summary of Significant Accounting Policies . Realized investment gains totaled $33.9 million , $29.3 million , and $8.1 million for the years ended 2017 , 2016 , and 2015 , respectively. In addition, the Company maintained $1.4 billion and $5.6 billion of interest bearing deposits at December 31, 2017 and December 31, 2016 , respectively, which are cash equivalents and are classified separately on the balance sheet. The following table presents interest and dividends on interest bearing deposits and investments: Interest and Dividend Income (dollars in millions) Years Ended December 31, 2017 2016 2015 Interest income — investments / reverse repos $ 128.9 $ 82.1 $ 43.7 Interest income — interest bearing deposits 57.7 33.1 17.1 Dividends — investments 10.9 16.7 10.4 Total interest and dividends $ 197.5 $ 131.9 $ 71.2 Securities Available-for-Sale The following table presents amortized cost and fair value of securities AFS and securities held-to-maturity ("HTM"). Amortized Cost and Fair Value (dollars in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2017 Debt securities AFS Mortgage-backed Securities U.S. government agency securities $ 5,010.2 $ 2.1 $ (62.1 ) $ 4,950.2 Non-agency securities 297.3 21.7 (0.5 ) 318.5 U.S. government agency obligations 25.0 — (0.2 ) 24.8 U.S. Treasury securities 297.7 0.2 (0.2 ) 297.7 Supranational securities 449.8 — (0.3 ) 449.5 State & Municipal Bonds 16.2 — (0.4 ) 15.8 Corporate Bonds - Foreign 65.7 1.4 — 67.1 Total debt securities AFS 6,161.9 25.4 (63.7 ) 6,123.6 Equity securities AFS 45.8 — (1.1 ) 44.7 Total securities AFS $ 6,207.7 $ 25.4 $ (64.8 ) $ 6,168.3 December 31, 2016 Debt securities AFS Mortgage-backed Securities U.S. government agency securities $ 2,073.6 $ 1.6 $ (32.3 ) $ 2,042.9 Non-agency securities 471.7 15.6 (1.8 ) 485.5 U.S. government agency obligations 649.9 — (3.9 ) 646.0 U.S. Treasury securities 299.9 — (0.4 ) 299.5 Supranational securities 200.2 — — 200.2 Total debt securities AFS 3,695.3 17.2 (38.4 ) 3,674.1 Equity securities AFS 35.0 — (0.9 ) 34.1 Total securities AFS 3,730.3 17.2 (39.3 ) 3,708.2 Debt Securities HTM Mortgage-backed securities U.S. government agency securities 110.0 0.7 (3.3 ) 107.4 State and municipal 27.7 — (0.5 ) 27.2 Foreign government 2.4 — — 2.4 Corporate — foreign 102.9 6.2 — 109.1 Total debt securities HTM 243.0 6.9 (3.8 ) 246.1 Total $ 3,973.3 $ 24.1 $ (43.1 ) $ 3,954.3 The following table presents the debt securities AFS by contractual maturity dates: Maturities (dollars in millions) December 31, 2017 Amortized Cost Fair Value Weighted Average Yields Mortgage-backed securities - U.S. government agency securities After 5 but within 10 years $ 198.7 $ 196.9 2.05 % Due after 10 years 4,811.5 4,753.3 2.50 % Total 5,010.2 4,950.2 2.48 % Mortgage-backed securities - non agency securities After 1 but within 5 years 12.5 12.5 5.16 % After 5 but within 10 years 6.9 7.4 4.56 % Due after 10 years 277.9 298.6 5.72 % Total 297.3 318.5 5.67 % U.S. government agency obligations After 1 but within 5 years 25.0 24.8 2.14 % Total 25.0 24.8 2.14 % U.S. Treasury Securities Due within 1 year 199.3 199.1 1.19 % After 5 but within 10 years 98.4 98.6 2.44 % Total 297.7 297.7 1.60 % Supranational securities Due within 1 year 399.8 399.8 1.19 % After 1 but within 5 years 50.0 49.7 2.02 % Total 449.8 449.5 1.28 % State and Municipal Bonds Due within 1 year 0.1 0.1 2.36 % After 1 but within 5 years 0.1 0.1 2.56 % After 5 but within 10 years 0.3 0.3 2.70 % Due after 10 years 15.7 15.3 2.35 % Total 16.2 15.8 2.36 % Corporate Bonds - Foreign After 1 but within 5 years 65.7 67.1 6.12 % Total 65.7 67.1 6.12 % Total debt securities available-for-sale $ 6,161.9 $ 6,123.6 2.54 % The following table summarizes the gross unrealized losses and estimated fair value of AFS securities and HTM securities aggregated by investment category and length of time that the securities have been in a continuous unrealized loss position. Gross Unrealized Losses (dollars in millions) December 31, 2017 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 agency securities $ 3,492.2 $ (30.9 ) $ 1,151.4 $ (31.2 ) Non-agency securities 2.1 — 0.4 (0.5 ) U.S. government agency obligations 24.8 (0.2 ) — — U.S. Treasury Securities 199.1 (0.2 ) — — State and Municipal Bonds — — 13.6 (0.4 ) Supranational securities 349.5 (0.3 ) — — Total debt securities AFS 4,067.7 (31.6 ) 1,165.4 (32.1 ) Equity securities AFS 0.1 (0.2 ) 44.5 (0.9 ) Total securities available-for-sale $ 4,067.8 $ (31.8 ) $ 1,209.9 $ (33.0 ) December 31, 2016 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 agency securities $ 1,589.6 $ (31.8 ) $ 13.8 $ (0.5 ) Non-agency securities 56.5 (1.4 ) 15.8 (0.4 ) U.S. government agency obligations 546.1 (3.9 ) — — U.S. Treasury Securities 299.5 (0.4 ) — — Total debt securities AFS 2,491.7 (37.5 ) 29.6 (0.9 ) Equity securities AFS 34.1 (0.9 ) — — Total securities available-for-sale 2,525.8 (38.4 ) 29.6 (0.9 ) Debt securities HTM Mortgage-backed securities U.S. government agency securities 68.2 (1.7 ) 26.7 (1.6 ) State and municipal 3.8 (0.1 ) 22.4 (0.4 ) Total securities held-to-maturity 72.0 (1.8 ) 49.1 (2.0 ) Total $ 2,597.8 $ (40.2 ) $ 78.7 $ (2.9 ) Purchased Credit-Impaired AFS Securities In connection with the OneWest acquisition, the Company classified AFS mortgage-backed securities as PCI due to evidence of credit deterioration since issuance and for which it was probable that the Company will not collect all principal and interest payments contractually required at the time of purchase. Accounting for these PCI securities is discussed in Note 1 — Business and Summary of Significant Accounting Policies . Changes in Accretable Yield for PCI Securities (dollars in millions) Years Ended December 31, 2017 2016 2015 Beginning Balance (1) $ 165.0 $ 189.0 $ 204.4 Accretion into interest income (23.4 ) (29.2 ) (13.5 ) Reclassifications from non-accretable difference due to increasing cash flows 2.4 4.7 — Reclassifications to non-accretable difference due to decreasing cash flows (2.2 ) 0.5 (1.7 ) Disposals (40.1 ) — (0.2 ) Balance at year end $ 101.7 $ 165.0 $ 189.0 (1) For year ended December 31, 2015, the beginning balance is as of August 3, 2015, the acquisition date of OneWest Bank. The estimated fair value of PCI securities was $312.5 million and $478.9 million with a par value of $387.6 million and $615.2 million as of December 31, 2017 and December 31, 2016 , respectively. Securities Carried at Fair Value with changes Recorded in Net Income The amortized cost and the fair value of Securities Carried at Fair Value with changes Recorded in Net Income were $0.4 million as of December 31, 2017 with a weighted average yield of 41.8% . The amortized cost and the fair value were $277.5 million and $283.5 million as of December 31, 2016, respectively. The unrealized losses totaled to $0.7 million and unrealized gains to $6.7 million as of December 31, 2016. No unrealized losses were reported as of December 31, 2017. Other Than Temporary Impairment As discussed in Note 1 — Business and Summary of Significant Accounting Policies, the Company conducted and documented its periodic review of all securities with unrealized losses, which it performs to evaluate whether the impairment is other than temporary. For PCI securities, management determined certain PCI securities with unrealized losses were deemed credit-related and recognized OTTI credit-related losses of $1.1 million , $3.3 million and $ 2.8 million as other than temporary write-downs for the years ended December 31, 2017 , December 31, 2016 and December 31, 2015, respectively. The Company reviewed debt securities AFS with unrealized losses and determined that the unrealized losses were not OTTI. The unrealized losses were not credit-related and believes it is not more-likely-than-not that the Company will have to sell prior to the recovery of the amortized cost basis. The Company reviewed equity securities classified as AFS with unrealized losses and determined that the unrealized losses were not OTTI. The unrealized losses were not credit-related. There were no unrealized losses on non-marketable investments. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | OTHER ASSETS The following table presents the components of other assets. Other Assets (dollars in millions) December 31, 2017 December 31, 2016 Tax credit investments and investments in unconsolidated subsidiaries (1) $ 247.6 $ 220.2 Counterparty receivables 241.3 437.3 Current and deferred federal and state tax assets 205.2 201.3 Property, furniture and fixtures 173.9 191.1 Indemnification assets 142.4 341.4 Intangible assets 113.0 140.7 Other (2)(3) 472.1 585.0 Total other assets $ 1,595.5 $ 2,117.0 (1) Included in this balance are LIHTC of $182.8 million and $151.3 million as of December 31, 2017 , and December 31, 2016 , respectively, that provide tax benefits to investors in the form of tax deductions from operating losses and tax credits. As a limited partner, the Company has no significant influence over the operations. During 2017 , the Company recorded a cumulative earnings adjustment due to its accounting policy change for LIHTC from the equity method to the proportional amortization method as the preferable method. Refer to Note 1 - Business and Summary of Significant Accounting Policy for additional information. The Company had recognized a pre-tax loss of $12.1 million and no post-tax amortization expense during 2016. In addition, during 2017 and 2016, the Company recognized total tax benefits of $29.6 million and $20.6 million , respectively, which included tax credits of $22.6 million and $15.9 million recorded in income taxes. During 2017, the Company recorded $50.8 million in tax provision under the proportional amortization method. The Company is periodically required to provide additional financial support during the investment period. The Company's liability for these unfunded commitments was $66.6 million and $62.3 million at December 31, 2017 , and December 31, 2016 , respectively. See Note 10 — Borrowings. (2) Other includes executive retirement plan and deferred compensation, other deferred charges, prepaid expenses, accrued interest and dividends, and other miscellaneous assets. (3) Other also includes servicing advances. As of December 31, 2017 and December 31, 2016 , the loans serviced for others total $34.1 million and $55.1 million for single family mortgage loans, respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
Deposits | DEPOSITS The following table provides detail on the types, rates and maturities of deposits. Deposits — Rates and Maturities (dollars in millions) December 31, 2017 Amount Rate Deposits — no stated maturity Non-interest-bearing checking $ 1,352.0 —% Interest-bearing checking 2,653.3 0.59% Money market 5,075.5 0.85% Savings 5,986.7 1.12% Other 153.7 NM Total checking and savings deposits 15,221.2 Certificates of deposit, remaining contractual maturity: Within one year 7,832.5 1.27% One to two years 3,069.7 1.94% Two to three years 1,619.8 2.23% Three to four years 633.2 2.40% Four to five years 167.1 2.35% Over five years 1,021.5 3.32% Total certificates of deposit 14,343.8 1.73% Purchase accounting adjustments 4.3 Total Deposits $ 29,569.3 NM Not meaningful — includes certain deposits such as escrow accounts, security deposits, and other similar accounts. The following table presents the maturity profile of other time deposits with a denomination of $100,000 or more. Certificates of Deposit $100,000 or More (dollars in millions) December 31, 2017 December 31, 2016 U.S. certificates of deposits: Three months or less $ 1,414.6 $ 1,725.4 After three months through six months 1,519.0 1,902.6 After six months through twelve months 2,825.3 2,907.7 After twelve months 5,713.4 7,013.4 Total $ 11,472.3 $ 13,549.1 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS The following table presents the carrying value of outstanding borrowings. Borrowings (dollars in millions) December 31, 2017 December 31, 2016 CIT Group Inc. Subsidiaries Total Total Senior Unsecured $ 3,737.5 $ — $ 3,737.5 $ 10,599.0 Secured borrowings: Structured financings — 1,541.4 1,541.4 1,925.7 FHLB advances — 3,695.5 3,695.5 2,410.8 Total Borrowings $ 3,737.5 $ 5,236.9 $ 8,974.4 $ 14,935.5 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, 2017 (dollars in millions) 2018 2019 2020 2021 2022 Thereafter Contractual Maturities Senior unsecured notes $ — $ 1,383.0 $ 435.6 $ — $ 1,150.0 $ 801.4 $ 3,770.0 Structured financings 226.3 770.7 70.5 63.4 58.0 360.0 1,548.9 FHLB advances 1,400.0 1,145.5 1,150.0 — — — 3,695.5 $ 1,626.3 $ 3,299.2 $ 1,656.1 $ 63.4 $ 1,208.0 $ 1,161.4 $ 9,014.4 Unsecured Borrowings Revolving Credit Facility In February 2018, the Company's existing revolving credit facility was amended. See Note 30 - Subsequent Events . The following information was in effect at December 31, 2017. The Revolving Credit Facility had a total commitment amount of $750 million and the maturity date of the commitment was January 25, 2019 . The applicable margin charged under the facility was 2.00% for LIBOR Rate loans and 1.00% for Base Rate loans. The Revolving Credit Facility was amended in February 2017 to lower the total commitments from $1.5 billion to $1.4 billion and to further extend the final maturity date of the lenders’ commitments. On April 4, 2017, upon consummation of the Commercial Air Sale, the total commitment amount under the Revolving Credit Facility was reduced from $1.4 billion to $750 million and the covenant requiring that the Company maintain a minimum $6 billion consolidated net worth was replaced by a covenant requiring that the Company maintain a minimum Tier 1 capital ratio of 9.0% . Also upon the consummation of the Commercial Air Sale, one of the nine domestic operating subsidiaries of the Company was discharged and released as a guarantor under the Revolving Credit Facility. As of December 31, 2017 , the Revolving Credit Facility was unsecured and was guaranteed by eight of the Company’s domestic operating subsidiaries. In addition, the applicable required minimum guarantor asset coverage ratio ranged from 1.0 :1.0 to 1.5 :1.0 and was 1.25 :1.0 at this date. The Revolving Credit Facility may be drawn and prepaid at the option of CIT. The unutilized portion of any commitment under the Revolving Credit Facility may be reduced permanently or terminated by CIT at any time without penalty. There were no outstanding borrowings at December 31, 2017 and 2016 . The amount available to draw upon at December 31, 2017 was $695 million , with the remaining amount of approximately $55 million being utilized for issuance of letters of credit to customers. Senior Unsecured Notes The following table presents the principal amounts by maturity date. Maturity Date Rate (%) Date of Issuance Par Value February 2019 5.500 % February 2012 $ 383.0 February 2019 3.875 % February 2014 1,000.0 May 2020 5.375 % May 2012 435.6 August 2022 5.000 % August 2012 1,150.0 August 2023 5.000 % August 2013 750.0 Weighted average rate and total 4.793 % $ 3,718.6 CIT redeemed on May 4, 2017 , 100% of the aggregate principal amount (approximately $4.84 billion ) of its outstanding (i) $1,725.8 million , 4.250% Senior Unsecured Notes due August 2017 ; (ii) $1,465.0 million , 5.250% Senior Unsecured Notes due March 2018 ; (iii) $695.0 million , 6.625% Series C Unsecured Notes due April 2018 ; and (iv) $955.9 million , 5.000% Senior Unsecured Notes due May 2018 , at an aggregate premium of $98 million . In addition, on April 4, 2017 , CIT commenced an offer to purchase for cash (the “Debt Tender Offer”) up to $950 million in the aggregate of its (i) 5.500% Series C Unsecured Notes due February 2019 ; (the "2019 Notes") (ii) 5.375% Senior Unsecured Notes due May 2020 (the "2020 Notes"); and (iii) 5.000% Senior Unsecured Notes due August 2022 (the “2022 Notes” and, together with the 2019 Notes and the 2020 Notes, the “Notes”). On April 18, 2017 , CIT elected to increase the aggregate maximum principal amount of Notes accepted for purchase in the Tender Offer and a total principal amount of $969 million of our 5.500% Series C Unsecured Notes due 2019 were repurchased for total consideration of $1.04 billion , including a premium of $59 million and accrued interest of $9 million . On September 15, 2017, CIT announced an offer to purchase for cash (the "Tender Offer") up to $800 million in aggregate of its outstanding (i) 5.500% Series C Unsecured Notes due February 2019 (the "2019 Notes"), (ii) 5.375% Senior Unsecured Notes due May 2020 (the "2020 Notes") and (iii) 5.000% Senior Unsecured Notes due August 2022 (the "2022 Notes"). On September 28, 2017, CIT announced that all $800 million of the tender offer had been subscribed as of the early participation deadline for total consideration of $861.2 million , including a premium of $50.6 million and accrued interest of $9.3 million . CIT purchased $398 million of the "2019 Notes", $302 million of the "2020 Notes" and $100 million of the "2022 Notes" that were tendered. In addition to the premium payments noted above, included in the loss on debt extinguishment of $220.0 million for the year ended December 31, 2017 are transaction costs and acceleration of deferred costs. The Indentures for the senior unsecured notes limit the Company's ability to create liens, merge or consolidate, or sell, transfer, lease or dispose of all or substantially all of its assets. Upon a Change of Control Triggering Event, as defined in the Indentures for the senior unsecured notes, holders of the senior unsecured notes will have the right to require the Company, as applicable, to repurchase all or a portion of the senior unsecured notes at a purchase price equal to 101% of the principal amount, plus accrued and unpaid interest to the date of such repurchase. In addition to the above table, there is an unsecured note outstanding with a 6.0% coupon and a carrying value of $39.6 million (par value of $51 million ) that matures in 2036 . Secured Borrowings At December 31, 2017 the Company had pledged $ 28.2 billion of assets (including collateral for the FRB discount window that is currently not drawn) although the collateral specifically identified and used to calculate available borrowings was $13.1 billion , which included $11.6 billion of loans (including amounts held for sale), $1.2 billion of operating lease assets, $0.2 billion of cash and $0.1 billion of investment securities. Under the FHLB Facility, CIT Bank may at any time grant a security interest in, sell, convey or otherwise dispose of any of the assets used for collateral provided that CIT Bank is in compliance with the collateral maintenance requirement immediately following such disposition and all other requirements of the facility at the time of such disposition. FHLB Advances As a member of the FHLB of San Francisco, CIT Bank N.A. can access financing based on an evaluation of its creditworthiness, statement of financial position, size and eligibility of collateral. The interest rates charged by the FHLB for advances typically vary depending upon maturity, the cost of funds of the FHLB, and the collateral provided for the borrowing and the advances are secured by certain Bank assets and bear either a fixed or floating interest rate. The FHLB advances are collateralized by a variety of consumer and commercial loans, including SFR mortgage loans, multi-family mortgage loans, commercial real estate loans, certain foreclosed properties and certain amounts receivable under a loss sharing agreement with the FDIC. As of December 31, 2017 , the Company had $5.2 billion of financing availability with the FHLB, of which $1.4 billion was unused and available, and $87.8 million was being utilized for issuance of letters of credit related to deposits. FHLB Advances as of December 31, 2017 , have a weighted average rate of 1.56% . The following table includes the total carrying value of FHLB Advances and pledged assets (1) . FHLB Advances with Pledged Assets (1) Summary (dollars in millions) December 31, 2017 December 31, 2016 FHLB Advances Pledged Assets (1) FHLB Advances Pledged Assets (1) Total $ 3,695.5 $ 6,154.1 $ 2,410.8 $ 6,389.7 (1) For purposes of this table the term “Pledged Assets” means the assets required under the collateral maintenance requirement in connection with FHLB advances at each of the dates. Structured Financings Set forth in the following table are amounts primarily related to structured financings of and assets owned by consolidated VIEs. Creditors of these VIEs received ownership and/or security interests in the assets. These entities are intended to be bankruptcy remote so that such assets are not available to creditors of CIT or any affiliates of CIT until and unless the related secured borrowings have been fully discharged. These transactions do not meet accounting requirements for sales treatment and are recorded as secured borrowings. Structured financings as of December 31, 2017 , had a weighted average rate of 3.75% , which ranged from 0.55% to 5.5% . Structured Financings and Pledged Assets Summary (dollars in millions) December 31, 2017 December 31, 2016 Secured Borrowing Pledged Assets Secured Borrowing Pledged Assets Business Capital $ 768.8 $ 2,838.6 $ 949.8 $ 2,608.0 Rail (1)(2) 772.6 1,272.0 860.1 1,327.5 Commercial Finance — — — 0.2 Subtotal — Commercial Banking 1,541.4 4,110.6 1,809.9 3,935.7 Non-Strategic Portfolios — — 115.8 212.6 Total $ 1,541.4 $ 4,110.6 $ 1,925.7 $ 4,148.3 (1) At December 31, 2017 , the TRS Transactions related borrowings and pledged assets, respectively, of $493.0 million and $818.6 million were included in Rail. The TRS Transactions are described in Note 11 — Derivative Financial Instruments. (2) At December 31, 2017 , secured borrowings and pledged assets, respectively, of $250.3 million and $421.9 million were related to the pending sale of our European Rail business, NACCO, and will be transferred to the buyer upon sale of that business. Not included in the above table are current borrowings of discontinued operations of $268.2 million and $1,571 million , at December 31, 2017 and 2016 , respectively. See Note 2 — Discontinued Operations . FRB The Company has a borrowing facility with the FRB Discount Window that can be used for short-term, typically overnight, borrowings. The borrowing capacity is determined by the FRB based on the collateral pledged. There were no outstanding borrowings with the FRB Discount Window as of December 31, 2017 and 2016 . Variable Interest Entities ("VIEs") 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 primary beneficiary. Consolidated VIEs The Company utilizes VIEs in the ordinary course of business to support its own and its customers' financing needs. Each VIE is a separate legal entity and maintains its own books and records. The most significant types of VIEs that CIT utilizes are 'on balance sheet' secured financings of pools of leases and loans originated by the Company where the Company is the primary beneficiary. Refer to Note 1 — Business and Summary of Significant Accounting Policies for further discussion. Unconsolidated VIEs Unconsolidated VIEs include government sponsored entity ("GSE") securitization structures, private-label securitizations and limited partnership interests where the Company's involvement is limited to an investor interest where the Company does not have the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE and limited partnership interests. The Company has certain contractual obligations related to the HECM loans and the GNMA HMBS securitizations, which are VIEs for which CIT is not the PB. The Company, as servicer of these HECM loans, is currently obligated to fund future borrower advances, which include fees paid to taxing authorities for borrowers' unpaid taxes and insurance, mortgage insurance premiums and payments made to borrowers for line of credit draws on HECM loans. In addition, the Company is required to repurchase the HECM loans once the outstanding principal balance is equal to or greater than 98% of the maximum claim amount or when the property forecloses to OREO, which reduces the secured borrowing balance. Additionally the Company services $140.3 million and $160.2 million of HMBS outstanding principal balance at December 31, 2017 , and December 31, 2016 , respectively, for transferred loans securitized by IndyMac for which OneWest Bank prior to the acquisition had purchased the mortgage servicing rights ("MSRs") in connection with the IndyMac Transaction. The carrying value of the MSRs was not significant at December 31, 2017 and December 31, 2016 . As the HECM loans are federally insured by the FHA and the secured borrowings guaranteed to the investors by GNMA, the Company does not believe maximum loss exposure as a result of its involvement is material. 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 Carrying Value (dollars in millions) December 31, 2017 December 31, 2016 Securities Partnership Investment Securities Partnership Investment Agency securities $ 4,950.2 $ — $ 2,152.9 $ — Non agency securities — Other servicer 318.8 — 769.0 — Tax credit equity investments — 198.8 — 167.7 Equity investments — 38.6 — 11.4 Total Assets $ 5,269.0 $ 237.4 $ 2,921.9 $ 179.1 Commitments to tax credit investments $ — $ 66.6 $ — $ 62.3 Total Liabilities $ — $ 66.6 $ — $ 62.3 Maximum loss exposure (1) $ 5,269.0 $ 237.4 $ 2,921.9 $ 179.1 (1) Maximum loss exposure to the unconsolidated VIEs excludes the liability for representations and warranties, corporate guarantees and also excludes servicing advances. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS As part of managing exposure to interest rate and foreign currency risk, the Company enters into derivative transactions with other financial institutions. The Company also enters into derivative contracts with customers as part of its Commercial Banking business. The Company does not enter into derivative financial instruments for proprietary trading or speculative purposes. See Note 1 — Business and Summary of Significant Accounting Policies for further description of the Company's derivative transaction policies. The following table presents fair values and notional values of derivative financial instruments: Fair and Notional Values of Derivative Financial Instruments (1) (dollars in millions) December 31, 2017 December 31, 2016 Notional Amount Asset Fair Value Liability Fair Value Notional Amount Asset Fair Value Liability Fair Value Qualifying Hedges Foreign currency forward contracts — net investment hedges $ 977.3 $ 0.2 $ (18.7 ) $ 817.9 $ 16.9 $ — Total Qualifying Hedges 977.3 0.2 (18.7 ) 817.9 16.9 — Non-Qualifying Hedges Interest rate swaps (2) 7,112.0 60.8 (38.6 ) 5,309.2 63.0 (50.1 ) Written options 2,744.3 — (0.7 ) 2,626.5 0.1 (1.0 ) Purchased options 2,571.5 0.7 — 2,129.6 1.0 (0.1 ) Foreign currency forward contracts 1,375.5 6.9 (14.9 ) 1,329.8 30.2 (6.0 ) Total Return Swap (TRS) 182.4 — (14.1 ) 587.5 — (11.3 ) Equity Warrants 0.8 — — 1.0 0.2 — Interest Rate Lock Commitments 7.7 0.1 — 20.7 0.1 (0.1 ) Forward sale commitments on agency MBS 8.0 — — 39.0 0.1 — Credit derivatives 285.1 — — 267.6 — (0.2 ) Total Non-qualifying Hedges 14,287.3 68.5 (68.3 ) 12,310.9 94.7 (68.8 ) Total Hedges $ 15,264.6 $ 68.7 $ (87.0 ) $ 13,128.8 $ 111.6 $ (68.8 ) (1) Presented on a gross basis. (2) Fair value balances include accrued interest. TRS Transactions As of December 31, 2017 , CIT was party to a financing facility between a Dutch wholly-owned subsidiary of CIT and Goldman Sachs International ("GSI"), which was structured as a total return swap ("TRS"). Amounts available for advances (otherwise known as the unused portion) were accounted for as derivatives and recorded at the estimated fair value. The total facility capacity available under the Dutch TRS was $625 million at December 31, 2017 and 2016 . The utilized portion reflects the borrowing. The aggregate "notional amounts" of the Dutch TRS of $182.4 million at December 31, 2017 , and the Dutch TRS and Canadian TRS of $587.5 million at December 31, 2016 , represent the aggregate unused portions and constitute derivative financial instruments. These notional amounts were calculated as the maximum facility commitment amount, $625 million , under the Dutch TRS less the actual adjusted qualifying borrowing outstanding of $442.6 million under the facility at December 31, 2017 , and the maximum aggregate facility commitment amount, $1,062.3 million at December 31, 2016 , under the Dutch TRS and Canadian TRS less the aggregate actual adjusted qualifying borrowing base outstanding of $474.8 million at December 31, 2016 . The notional amounts of the derivatives will increase as the adjusted qualifying borrowing base decreases due to repayment of the underlying asset-backed securities ("ABS") to investors. If CIT funds additional ABS under the Dutch TRS, the aggregate adjusted qualifying borrowing base of the total return swap will increase and the notional amount of the derivative will decrease accordingly. Valuation of the derivatives related to the TRS Transactions is based on several factors using a discounted cash flow (“DCF”) methodology, including: • Funding costs for similar financings based on current market conditions; • Forecasted amortization, due to principal payments on the underlying ABS, which impacts the amount of the unutilized portion; and • Specific to the Dutch TRS, forecasted usage of the long-dated facilities through the final maturity date in 2028. Based on the Company's valuation, a liability of $14.1 million and $11.3 million was recorded at December 31, 2017 , and 2016 , respectively. The increase in liability of $2.8 million and the decrease in liability of $43.6 million for the years ended December 31, 2017 , and 2016 , respectively, were recognized in Other Non-Interest Income. As of December 31, 2016 CIT was also party to a TRS with its wholly owned Canadian subsidiary ("CFL"). In order to prepare for the previously announced sale of the Company's commercial aircraft leasing business to Avolon Holdings Limited, CIT redeemed in December 2016 the commercial aircraft securitization transaction utilized as a reference obligation in the Canadian TRS, causing the Canadian TRS to become fully unutilized. As a result, the Company and its Board of Directors decided to terminate the Canadian TRS in order to further simplify the Company's business model and reduce earnings volatility resulting from the mark-to-market of the Canadian TRS derivative. On December 7, 2016, CFL entered into a Fourth Amendment and Restated Confirmation (the "Termination Agreement") with GSI to terminate the Canadian TRS and the facility was terminated on January 17, 2017. The Termination agreement required payment by CFL to GSI on December 7, 2016, of the present value of the remaining facility fee in an amount equal to approximately $ 280 million . The reduction of liability associated with the TRS Transaction of approximately $37 million resulted in a net pretax charge for the Company of approximately $245 million in the fourth quarter of 2016. As a result of the Termination agreement, the unsecured counterparty receivable held by GSI under the Canadian TRS was also released. Interest expense related to the TRS Transactions is affected by the following: * A fixed facility fee of 2.85% per annum times the maximum facility commitment amount, * A variable amount based on one-month or three-month USD LIBOR time the "utilized amount" (effectively the "adjusted qualifying borrowing base") of the total return swap, and * A reduction in interest expense due to the recognition of the payment of any original issue discount from GSI on the various ABS. Impact of Collateral and Netting Arrangements on the Total Derivative Portfolio The following tables present a summary of our derivative portfolio, which includes the gross amounts of recognized financial assets and liabilities; the amounts offset in the consolidated balance sheet; the net amounts presented in the consolidated balance sheet; the amounts subject to an enforceable master netting arrangement or similar agreement that were not included in the offset amount above, and the amount of cash collateral received or pledged. Derivative transactions are documented under an International Swaps and Derivatives Association ("ISDA") agreement. Offsetting of Derivative Assets and Liabilities (dollars in millions) (1) Gross Amounts not offset in the Consolidated Balance Sheet Gross Amount of Recognized Assets (Liabilities) Gross Amount Offset in the Consolidated Balance Sheet Net Amount Presented in the Consolidated Balance Sheet Derivative Financial Instruments (2) Cash Collateral Pledged / (Received) (2)(3) Net Amount December 31, 2017 Derivative assets $ 68.7 $ — $ 68.7 $ (18.7 ) $ (8.4 ) $ 41.6 Derivative liabilities (87.0 ) — (87.0 ) 18.7 23.0 (45.3 ) December 31, 2016 Derivative assets $ 111.6 $ — $ 111.6 $ (30.9 ) $ (48.7 ) $ 32.0 Derivative liabilities (68.8 ) — (68.8 ) 30.9 5.0 (32.9 ) (1) Due to a change in clearinghouse rules, the Company accounts for swap contracts cleared by the Chicago Mercantile Exchange (“CME”) as “settled-to-market” effective January 2017. 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. The Company’s swap contracts cleared by LCH Clearnet (“LCH”) continue to be accounted for as “collateralized-to-market” and variation margin balances are characterized as collateral against derivative exposures. At December 31, 2017 , gross amount of recognized assets and liabilities were lower by $5.4 million and 10.4 million , respectively. (2) 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 ("Derivative Financial Instruments") 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. In conjunction with the ISDA agreements, 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. (3) Collateral pledged or received is included in Other assets or Other liabilities, respectively. The following table presents the impact of derivatives on the statements of income. Derivative Instrument Gains and Losses (dollars in millions) Years Ended December 31, Derivative Instruments Gain / (Loss) Recognized 2017 2016 2015 Non Qualifying Hedges Interest rate swaps Other non-interest income $ 8.5 $ 7.9 $ 4.6 Interest rate options Other non-interest income 0.4 0.6 1.6 Foreign currency forward contracts Other non-interest income (34.2 ) 26.2 116.5 Equity warrants Other non-interest income (0.2 ) (0.2 ) 0.2 Total Return Swaps (TRS) Other non-interest income (2.8 ) 43.6 (30.4 ) Interest Rate Lock Commitments Other non-interest income 0.1 (0.2 ) — Forward sale commitments on agency MBS Other non-interest income (0.4 ) 1.1 — Risk Participation Agreements Other non-interest income (0.1 ) 1.8 — Total Non-qualifying Hedges (28.7 ) 80.8 92.5 Total derivatives-income statement impact $ (28.7 ) $ 80.8 $ 92.5 The following table presents the changes in AOCI relating to derivatives: Changes in AOCI Relating to Derivatives (dollars in millions) Contract Type Derivatives — effective portion reclassified from AOCI to income Total income statement impact Derivatives — effective portion recorded in OCI Total change in OCI for period Year Ended December 31, 2017 Foreign currency forward contracts — net investment hedges $ 13.4 $ 13.4 $ (74.7 ) $ (88.1 ) Total $ 13.4 $ 13.4 $ (74.7 ) $ (88.1 ) Year Ended December 31, 2016 Foreign currency forward contracts — net investment hedges $ 1.8 $ 1.8 $ 2.7 $ 0.9 Total $ 1.8 $ 1.8 $ 2.7 $ 0.9 Year Ended December 31, 2015 Foreign currency forward contracts — net investment hedges $ 33.8 $ 33.8 $ 128.4 $ 94.6 Total $ 33.8 $ 33.8 $ 128.4 $ 94.6 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | OTHER LIABILITIES The following table presents components of other liabilities: December 31, 2017 December 31, 2016 Accrued expenses and accounts payable $ 584.8 $ 580.4 Current and deferred taxes payable 204.3 250.6 Fair value of derivative financial instruments, and other 87.5 69.0 Accrued interest payable 86.6 181.2 Other (1) 473.9 816.4 Total other liabilities $ 1,437.1 $ 1,897.6 (1) Other consists of unsettled investment security purchased of $0 million and $201.2 million as of December 31, 2017 and 2016 , respectively, contingent performance liability, and other miscellaneous liabilities. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value | FAIR VALUE Fair Value Hierarchy The Company is required to report fair value measurements for specified classes of assets and liabilities. See Note 1 — "Business and Summary of Significant Accounting Policies" for fair value measurement policy. The Company characterizes inputs in the determination of fair value according to the fair value hierarchy. The fair value of the Company's assets and liabilities where the measurement objective specifically requires the use of fair value are set forth in the tables below. Disclosures that follow in this note exclude assets and liabilities classified as discontinued operations. Financial Assets and Liabilities Measured at Estimated 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, 2017 Assets Debt Securities AFS $ 6,123.6 $ 199.0 $ 5,538.8 $ 385.8 Securities carried at fair value with changes recorded in net income 0.4 — — 0.4 Equity Securities AFS 44.7 0.2 44.5 — Derivative assets at fair value — non-qualifying hedges (1) 68.5 — 68.4 0.1 Derivative assets at fair value — qualifying hedges 0.2 — 0.2 — Total $ 6,237.4 $ 199.2 $ 5,651.9 $ 386.3 Liabilities Derivative liabilities at fair value — non-qualifying hedges (1) $ (68.3 ) $ — $ (54.2 ) $ (14.1 ) Derivative liabilities at fair value — qualifying hedges (18.7 ) — (18.7 ) — Consideration holdback liability (46.0 ) — — (46.0 ) FDIC True-up Liability (65.1 ) — — (65.1 ) Total $ (198.1 ) $ — $ (72.9 ) $ (125.2 ) December 31, 2016 Assets Debt Securities AFS $ 3,674.1 $ 200.1 $ 2,988.5 $ 485.5 Securities carried at fair value with changes recorded in net income 283.5 — — 283.5 Equity Securities AFS 34.1 0.3 33.8 — Derivative assets at fair value — non-qualifying hedges (1) 94.7 — 94.7 — Derivative assets at fair value — qualifying hedges 16.9 — 16.9 — Total $ 4,103.3 $ 200.4 $ 3,133.9 $ 769.0 Liabilities Derivative liabilities at fair value — non-qualifying hedges (1) $ (68.8 ) $ — $ (57.3 ) $ (11.5 ) Consideration holdback liability (47.2 ) — — (47.2 ) FDIC True-up Liability (61.9 ) — — (61.9 ) Total $ (177.9 ) $ — $ (57.3 ) $ (120.6 ) (1) Derivative fair values include accrued interest. Debt and Equity Securities Classified as AFS and Securities carried at fair value with changes recorded in net income — Debt and equity securities classified as AFS are carried at fair value, as determined either by Level 1, Level 2 or Level 3 inputs. Debt securities classified as AFS included investments in U.S. federal government agency, U.S. Treasury Notes and supranational securities and were valued using Level 2 inputs, primarily quoted prices for similar securities. U.S. Treasury Bills and certain equity securities classified as AFS were valued using Level 1 inputs, primarily quoted prices in active markets. For Agency pass-through MBS, which are classified as Level 2, the Company generally determines estimated fair value utilizing prices obtained from independent broker dealers and recent trading activity for similar assets. Debt securities classified as AFS and securities carried at fair value with changes recorded in net income represent non-Agency MBS, the market for such securities is not active and the estimated fair value was determined using a discounted cash flow technique. The significant unobservable assumptions, which are verified to the extent possible using broker dealer quotes, are estimated by type of underlying collateral, including credit loss assumptions, estimated prepayment speeds and appropriate discount rates. Given the lack of observable market data, the estimated fair value of the non-agency MBS is classified as Level 3. Derivative Assets and Liabilities — These derivatives are valued using models that incorporate inputs depending on the type of derivative, such as interest rate curves, foreign exchange rates and volatility. Readily observable market inputs to models can be validated to external sources, including industry pricing services, or corroborated through recent trades, broker dealer quotes, yield curves, or other market-related data. As such, these derivative instruments are valued using a Level 2 methodology. In addition, these derivative values incorporate an assessment of the risk of counterparty nonperformance, measured based on the Company's evaluation of credit risk. The fair value of the TRS derivative, written options on certain CIT Bank CDs and credit derivatives were estimated using Level 3 inputs. FDIC True-up Liability —The FDIC True-up liability was recorded at estimated fair value as of the Acquisition Date and is remeasured to fair value at each reporting date until the contingency is resolved. The FDIC True-up liability was valued using the discounted cash flow method based on the terms specified in the loss share agreement with the FDIC, the actual FDIC payments collected and significant unobservable inputs, including a risk-adjusted discount rate (reflecting the Company's credit risk plus a liquidity premium), prepayment and default rates. Due to the significant unobservable inputs used to calculate the estimated fair value, these measurements are classified as Level 3. Consideration Holdback Liability — In connection with the OneWest acquisition, the parties negotiated 4 separate holdbacks related to select trailing risks, totaling $116 million , which reduced the cash consideration paid at closing. Any unapplied Holdback funds at the end of the respective holdback periods, which range from 1 — 5 years, are payable to the former OneWest shareholders. Unused funds for any of the four holdbacks cannot be applied against another holdback amount. The range of potential holdback to be paid is from $0 to $116 million . Based on management's estimate of the probability of each holdback it was determined that the probable amount of holdback to be paid was originally recorded at $62.4 million and currently is $46.0 million . The amount expected to be paid was discounted based on CIT's cost of funds, which approximates a market rate. This contingent consideration was measured at fair value at the Acquisition Date and is re-measured at fair value in subsequent accounting periods, with the changes in fair value recorded in the statement of income, until the related contingent issues are resolved. Gross payments, which are determined based on the Company's probability assessment, are discounted at a rate approximating the Company's average coupon rate on deposits and borrowings. Due to the significant unobservable inputs used to calculate the estimated fair value, these measurements are classified as Level 3. The following tables summarize information about significant unobservable inputs related to the Company's categories of Level 3 financial assets and liabilities measured on a recurring basis as of December 31, 2017 and 2016 . Quantitative Information about Level 3 Fair Value Measurements — Recurring (dollars in millions) Financial Instrument Estimated Valuation Technique(s) Significant Range of Inputs Weighted December 31, 2017 Assets Securities — AFS $ 385.8 Discounted cash flow Discount Rate 0.0% – 37.1% 4.6 % Prepayment Rate 2.1% – 22.3% 8.8 % Default Rate 0.0% – 7.3% 3.7 % Loss Severity 0.3% – 72.4% 35.3 % Securities carried at fair value with changes recorded in net income 0.4 Discounted cash flow Discount Rate 31.1 % 31.1 % Prepayment Rate 10.9 % 10.9 % Default Rate 2.4 % 2.4 % Loss Severity 59.2 % 59.2 % Derivative assets — non qualifying 0.1 Internal valuation model Borrower Rate 3.0% – 4.4% 3.8 % Total Assets $ 386.3 Liabilities FDIC True-up liability $ (65.1 ) Discounted cash flow Discount Rate 2.9 % 2.9 % Consideration holdback liability (46.0 ) Discounted cash flow Payment Probability 0% – 100% 48.0 % Derivative liabilities — non qualifying (14.1 ) Market Comparables (1) Total Liabilities $ (125.2 ) December 31, 2016 Securities — AFS $ 485.5 Discounted cash flow Discount Rate 0.0% – 96.4% 5.5 % Prepayment Rate 3.2% – 21.2% 8.8 % Default Rate 0.0% – 9.0% 3.9 % Loss Severity 1.0% – 79.8% 36.3 % Securities carried at fair value with changes recorded in net income 283.5 Discounted cash flow Discount Rate 0.0% – 34.6% 5.6 % Prepayment Rate 6.1% – 16.2% 11.9 % Default Rate 1.9% – 8.1% 4.6 % Loss Severity 22.2% – 44.7% 25.8 % Total Assets $ 769.0 FDIC True-up liability $ (61.9 ) Discounted cash flow Discount Rate 3.2 % 3.2 % Consideration holdback liability (47.2 ) Discounted cash flow Payment Probability 0% – 100% 40.9 % Discount Rate 1.3% – 4.0% 2.1 % Derivative liabilities – non qualifying (11.5 ) Market Comparables (1) Total Liabilities $ (120.6 ) (1) The valuation of these derivatives is primarily related to the GSI facilities, which is based on several factors using a discounted cash flow methodology, including a) funding costs for similar financings based on current market conditions; b) forecasted usage of long-dated facilities through the final maturity date in 2028; and c) forecasted amortization, due to principal payments on the underlying ABS, which impacts the amount of the unutilized portion. The level of aggregation and diversity within the products disclosed in the tables results in certain ranges of inputs being wide and unevenly distributed across asset and liability categories. For instruments backed by residential real estate, diversity in the portfolio is reflected in a wide range for loss severity due to varying levels of default. The lower end of the range represents high performing loans with a low probability of default while the higher end of the range relates to more distressed loans with a greater risk of default. The valuation techniques used for the Company's Level 3 assets and liabilities, as presented in the previous tables, are described as follows: • Discounted cash flow — Discounted cash flow valuation techniques generally consist of developing an estimate of future cash flows that are expected to occur over the life of an instrument and then discounting those cash flows at a rate of return that results in the estimated fair value amount. The Company utilizes both the direct and indirect valuation methods. Under the direct method, contractual cash flows are adjusted for expected losses. The adjusted cash flows are discounted at a rate which considers other costs and risks, such as market risk and liquidity. Under the indirect method, contractual cash flows are discounted at a rate which reflects the costs and risks associated with the likelihood of generating the contractual cash flows. • Market comparables — Market comparable(s) pricing valuation techniques are used to determine the estimated fair value of certain instruments by incorporating known inputs such as recent transaction prices, pending transactions, or prices of other similar investments which require significant adjustment to reflect differences in instrument characteristics. • Internal valuation model — The internal model for rate lock valuation uses the spread on borrower mortgage rate and the Fannie Mae pass through rate and applies a conversion factor to assess the derivative value. Significant unobservable inputs presented in the previous tables are those the Company considers significant to the estimated fair value of the Level 3 asset or liability. The Company considers unobservable inputs to be significant if, by their exclusion, the estimated fair value of the Level 3 asset or liability would be significantly impacted based on qualitative factors such as nature of the instrument, type of valuation technique used, and the significance of the unobservable inputs on the values relative to other inputs used within the valuation. Following is a description of the significant unobservable inputs provided in the tables. • Default rate — is an estimate of the likelihood of not collecting contractual amounts owed expressed as a constant default rate. • Discount rate — is a rate of return used to present value the future expected cash flows to arrive at the estimated fair value of an instrument. The discount rate consists of a benchmark rate component and a risk premium component. The benchmark rate component, for example, LIBOR or U.S. Treasury rates, is generally observable within the market and is necessary to appropriately reflect the time value of money. The risk premium component reflects the amount of compensation market participants require due to the uncertainty inherent in the instruments' cash flows resulting from risks such as credit and liquidity. • Loss severity — is the percentage of contractual cash flows lost in the event of a default. • Prepayment rate — is the estimated rate at which forecasted prepayments of principal of the related loan or debt instrument are expected to occur, expressed as a constant prepayment rate ("CPR"). • Payment Probability — is an estimate of the likelihood the consideration holdback amount will be required to be paid expressed as a percentage. • Borrower rate - Mortgage rate committed to the borrower by CIT Bank, effective for up to 90 days. As reflected above, the Company generally uses discounted cash flow techniques to determine the estimated fair value of Level 3 assets and liabilities. Use of these techniques requires determination of relevant inputs and assumptions, some of which represent significant unobservable inputs and assumptions and as a result, changes in these unobservable inputs (in isolation) may have a significant impact to the estimated fair value. Increases in the probability of default and loss severities will result in lower estimated fair values, as these increases reduce expected cash flows. Increases in the discount rate will result in lower estimated fair values, as these increases reduce the present value of the expected cash flows. Alternatively a change in one unobservable input may result in a change to another unobservable input due to the interrelationship among inputs, which may counteract or magnify the estimated fair value impact from period to period. The value of the Level 3 assets and liabilities estimated using a discounted cash flow technique would decrease (increase) upon an increase (decrease) in discount rate, default rate, loss severity or weighted average life inputs. Discount rates are influenced by market expectations for the underlying collateral performance, and therefore may directionally move with probability and severity of default; however, discount rates are also impacted by broader market forces, such as competing investment yields, sector liquidity, economic news, and other macroeconomic factors. There is no direct interrelationship between prepayments and discount rate. Prepayment rates generally move in the opposite direction of market interest rates. Increase in the probability of default will generally be accompanied with an increase in loss severity, as both are impacted by underlying collateral values. The following table summarizes the changes in estimated fair value for all assets and liabilities measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3): Changes in Estimated Fair Value of Level 3 Financial Assets and Liabilities Measured on a Recurring Basis (dollars in millions) Securities- AFS Securities carried at fair value with changes recorded in net income FDIC Receivable Derivative (1) Derivative liabilities — non-qualifying (1) FDIC True-up Liability Consideration holdback Liability December 31, 2016 $ 485.5 $ 283.5 $ 0.6 $ — $ (11.5 ) $ (61.9 ) $ (47.2 ) Included in earnings 6.6 23.0 0.8 0.1 (2.6 ) (3.2 ) 1.2 Included in comprehensive income 7.7 — — — — — — Impairment (1.1 ) — — — — — — Transfer from Securities- HTM 66.8 — — — — — — Sales, paydowns and adjustments (179.7 ) (306.1 ) (1.0 ) — — — — December 31, 2017 $ 385.8 $ 0.4 $ 0.4 $ 0.1 $ (14.1 ) $ (65.1 ) $ (46.0 ) December 31, 2015 $ 567.1 $ 339.7 $ 54.8 $ — $ (55.5 ) $ (56.9 ) $ (60.8 ) Included in earnings (5.8 ) 13.0 10.7 — 44.0 (5.0 ) (0.7 ) Included in comprehensive income 20.6 — — — — — — Impairment (3.3 ) — — — — — — Sales, paydowns and adjustments (93.1 ) (69.2 ) (64.9 ) — — — — 14.3 December 31, 2016 $ 485.5 $ 283.5 $ 0.6 $ — $ (11.5 ) $ (61.9 ) $ (47.2 ) (1) Valuation of the derivatives related to the TRS Transactions and written options on certain CIT Bank CDs. The Company monitors the availability of observable market data to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in the observability of key inputs to a fair value measurement may result in a transfer of assets or liabilities between Level 1, 2 and 3. The Company's policy is to recognize transfers in and transfers out as of the end of the reporting period. For the years ended December 31, 2017 and 2016 , there were no transfers into or out of Level 3. Assets Measured at Estimated Fair Value on a Non-recurring Basis Certain assets or liabilities are required to be measured at estimated fair value on a nonrecurring basis subsequent to initial recognition. Generally, these adjustments are the result of LOCOM or other impairment accounting. In determining the estimated fair values during the period, the Company determined that substantially all the changes in estimated fair value were due to declines in market conditions versus instrument specific credit risk. This was determined by examining the changes in market factors relative to instrument specific factors. The following table presents assets measured at estimated fair value on a non-recurring basis for which a non-recurring change in fair value has been recorded in the current year: Carrying Value of Assets Measured at Fair Value on a Non-recurring Basis (dollars in millions) Fair Value Measurements at Reporting Date Using: Total Level 1 Level 2 Level 3 Total (Losses) Assets December 31, 2017 Assets held for sale $ 177.8 $ — $ — $ 177.8 $ (15.0 ) Other real estate owned 18.8 — — 18.8 (4.4 ) Impaired loans 89.1 — — 89.1 (21.9 ) Total $ 285.7 $ — $ — $ 285.7 $ (41.3 ) December 31, 2016 Goodwill $ 51.8 $ — $ — $ 51.8 $ (354.2 ) Assets held for sale 201.6 — — 201.6 (14.7 ) Other real estate owned 22.5 — — 22.5 (3.2 ) Impaired loans 151.9 — — 151.9 (26.8 ) Total $ 427.8 $ — $ — $ 427.8 $ (398.9 ) Assets of continuing operations that are measured at fair value on a non-recurring basis are as follows: Assets Held for Sale — Assets held for sale are recorded at the lower of cost or fair value on the balance sheet. As there is no liquid secondary market for the assets held for sale in the Company's portfolio, the fair value is estimated based on a binding contract, current letter of intent or other third-party valuation, or using internally generated valuations or discounted cash flow technique, all of which are Level 3 inputs. Carrying value of assets held for sale with impairment approximates fair value at December 31, 2017 and December 31, 2016. Other Real Estate Owned — Estimated fair values of other real estate owned are reviewed on a quarterly basis and any decline in value below cost is recorded as impairment. Estimated fair value approximates carrying value and is generally based on market data, if available, or broker price opinions or independent appraisals, adjusted for costs to sell. The estimated costs to sell are incremental direct costs to transact a sale, such as broker commissions, legal fees, closing costs and title transfer fees. The costs must be essential to the sale and would not have been incurred if the decision to sell had not been made. The range of inputs used to estimate cost to sell were 5.4% to 52.6% , which resulted in a weighted average of 6.5% at December 31, 2017. Also a significant unobservable input is the binding contract, appraised value or the sales price and thus is classified as Level 3. Impaired Loans — Impairment occurs when, based on current information and events, it is probable that CIT will be unable to collect all amounts due according to contractual terms of the agreement. Impairment is measured as the shortfall between estimated value and recorded investment in the loan, with the estimated value determined using fair value of collateral and other cash flows if the loan is collateralized, the present value of expected future cash flows discounted at the contract's effective interest rate, or observable market prices. The significant unobservable inputs result in the Level 3 classification. As of the reporting date, the carrying value of impaired loans approximates fair value. Goodwill — In accordance with ASC 350, Intangibles - Goodwill and other, 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 reporting unit below its carrying value. During the fourth quarter of 2016, the Company performed its annual goodwill impairment test. Based on our assessments under both Step 1 and Step 2, the Company recorded an impairment of the Consumer Banking and Commercial Services RUs of $ 319.4 million and $ 34.8 million , respectively. See Note 26 - Goodwill and Intangible Assets for further information. Fair Values of Financial Instruments The carrying values and estimated fair values of financial instruments presented below exclude leases and certain other assets and liabilities, which are not required for disclosure. Financial Instruments (dollars in millions) Estimated Fair Value Carrying Value Level 1 Level 2 Level 3 Total December 31, 2017 Financial Assets Cash and interest bearing deposits $ 1,718.7 $ 1,718.7 $ — $ — $ 1,718.7 Derivative assets at fair value — non-qualifying hedges 68.5 — 68.4 0.1 68.5 Derivative assets at fair value — qualifying hedges 0.2 — 0.2 — 0.2 Assets held for sale (excluding leases) 1,011.4 — 4.7 1,044.8 1,049.5 Loans (excluding leases) 26,428.1 — 624.3 26,220.5 26,844.8 Securities purchased under agreement to resell 150.0 — 150.0 — 150.0 Investment securities (1) 6,469.9 199.2 5,583.3 687.4 6,469.9 Indemnification assets (2) 113.5 — — 87.4 87.4 Other assets subject to fair value disclosure and unsecured counterparty receivables (3) 542.2 — — 542.2 542.2 Financial Liabilities Deposits (4) (29,586.5 ) — — (29,668.6 ) (29,668.6 ) Derivative liabilities at fair value — non-qualifying hedges (68.3 ) — (54.2 ) (14.1 ) (68.3 ) Derivative liabilities at fair value — qualifying hedges (18.7 ) — (18.7 ) — (18.7 ) Borrowings (4) (9,043.8 ) — (8,281.7 ) (991.2 ) (9,272.9 ) Credit balances of factoring clients (1,468.6 ) — — (1,468.6 ) (1,468.6 ) Other liabilities subject to fair value disclosure (5) (725.2 ) — — (725.2 ) (725.2 ) December 31, 2016 Financial Assets Cash and interest bearing deposits $ 6,430.6 $ 6,430.6 $ — $ — $ 6,430.6 Derivative assets at fair value — non-qualifying hedges 94.7 — 94.7 — 94.7 Derivative assets at fair value — qualifying hedges 16.9 — 16.9 — 16.9 Assets held for sale (excluding leases) 428.4 — 175.0 264.6 439.6 Loans (excluding leases) 26,683.0 — 390.3 26,456.4 26,846.7 Investment securities (1) 4,491.1 200.4 3,199.6 1,094.2 4,494.2 Indemnification assets (2) 233.4 — — 201.0 201.0 Other assets subject to fair value disclosure and unsecured counterparty receivables (3) 712.2 — — 712.2 712.2 Financial Liabilities Deposits (4) (32,323.2 ) — — (32,490.9 ) (32,490.9 ) Derivative liabilities at fair value — non-qualifying hedges (68.8 ) — (57.3 ) (11.5 ) (68.8 ) Borrowings (4) (15,097.8 ) — (14,457.8 ) (1,104.9 ) (15,562.7 ) Credit balances of factoring clients (1,292.0 ) — — (1,292.0 ) (1,292.0 ) Other liabilities subject to fair value disclosure (5) (1,003.6 ) — — (1,003.6 ) (1,003.6 ) (1) Level 3 estimated fair value at December 31, 2017 , includes debt securities AFS ( $385.8 million ), debt securities carried at fair value with changes recorded in net income ( $0.4 million ), and non-marketable investments ( $301.2 million ). Level 3 estimated fair value at December 31, 2016 , included debt securities AFS ( $485.5 million ), debt securities carried at fair value with changes recorded in net income ( $283.5 million ), non-marketable investments ( $256.4 million ), and debt securities HTM ( $68.8 million ). (2) The indemnification assets included in the above table do not include Agency claims indemnification ( $28.9 million and $108.0 million at December 31, 2017 and 2016 , respectively), as they are not considered financial instruments. (3) Other assets subject to fair value disclosure primarily include accrued interest receivable and miscellaneous receivables. These assets have carrying values that approximate fair value generally due to the short-term nature and are classified as Level 3. The unsecured counterparty receivables primarily consist of amounts owed to CIT from GSI for debt discount, return of collateral posted to GSI and settlements resulting from market value changes to asset-backed securities underlying the TRS. (4) Deposits and borrowings include accrued interest, which is included in "Other liabilities" in the Balance Sheet. (5) Other liabilities subject to fair value disclosure include accounts payable, accrued liabilities, customer security and maintenance deposits and miscellaneous liabilities. The fair value of these approximate carrying value and are classified as level 3. The methods and assumptions used to estimate the fair value of each class of financial instruments are explained below: Cash and interest bearing deposits — Cash and cash equivalents and restricted cash approximate estimated fair value and are classified as Level 1. Derivatives — The estimated fair values of derivatives were calculated using observable market data and represent the gross amount receivable or payable to terminate, taking into account current market rates, which represent Level 2 inputs, except for the TRS derivative and written options on certain CIT Bank CDs and credit derivatives that utilized Level 3 inputs. See Note 11 — Derivative Financial Instruments for notional principal amounts and fair values. Investment Securities — Debt and equity securities classified as AFS are carried at fair value, as determined either by Level 1, Level 2 or Level 3 inputs. Debt securities classified as AFS included investments in U.S. federal government agency securities, U.S. Treasury Notes and supranational securities and were valued using Level 2 inputs, primarily quoted prices for similar securities. Debt securities carried at fair value with changes recorded in net income include non-agency MBS where the market for such securities is not active; therefore the estimated fair value was determined using a discounted cash flow technique, which is a Level 3 input. U.S. Treasury Bills and certain equity securities classified as AFS were valued using Level 1 inputs, primarily quoted prices in active markets. Debt securities classified as HTM include government agency securities and were valued using Level 2 inputs, primarily quoted prices for similar securities. For debt securities HTM where no market rate was available, Level 3 inputs were utilized. Non-marketable equity investments utilize Level 3 inputs to estimate fair value and are generally recorded under the cost or equity method of accounting and are periodically assessed for OTTI, with the net asset values reduced when impairment is deemed to be other-than-temporary. For investments in limited partnership equity interests, the Company used the net asset value provided by the fund manager as an appropriate measure of fair value. Assets held for sale — Of the assets held for sale above, $4.7 million carrying amount at December 31, 2017 was valued using Level 2 inputs. As there is no liquid secondary market for the other assets held for sale in the Company's portfolio, the fair value is estimated based on a binding contract, current letter of intent or other third-party valuation, or using internally generated valuations or discounted cash flow technique, all of which are Level 3 inputs. Commercial loans are generally valued individually, while small ticket commercial loans are valued on an aggregate portfolio basis. Loans — Within the Loans category, there are several types of loans as follows: • Commercial and Consumer Loans — Of the loan balance above, $624.3 million at December 31, 2017 and $390.3 million at December 31, 2016 , respectively, were valued using Level 2 inputs. As there is no liquid secondary market for the other loans in the Company's portfolio, the fair value is estimated based on discounted cash flow analyses which use Level 3 inputs at both December 31, 2017 and December 31, 2016 . In addition to the characteristics of the underlying contracts, key inputs to the analysis include interest rates, prepayment rates, and credit spreads. For the commercial loan portfolio, the market based credit spread inputs are derived from instruments with comparable credit risk characteristics obtained from independent third party vendors. As these Level 3 unobservable inputs are specific to individual loans / collateral types, management does not believe that sensitivity analysis of individual inputs is meaningful, but rather that sensitivity is more meaningfully assessed through the evaluation of aggregate carrying values of the loans. The fair value of loans at December 31, 2017 was $26.8 billion , which was 101.6% of carrying value. The fair value of loans at December 31, 2016 was $26.8 billion , which was 100.6% of carrying value. • Impaired Loans — The value of impaired loans is estimated using the fair value of collateral (on an orderly liquidation basis) if the loan is collateralized, the present value of expected cash flows utilizing the current market rate for such loan, or observable market price. As these Level 3 unobservable inputs are specific to individual loans / collateral types, management does not believe that sensitivity analysis of individual inputs is meaningful, but rather that sensitivity is more meaningfully assessed through the evaluation of aggregate carrying values of impaired loans relative to contractual amounts owed (unpaid principal balance or "UPB") from customers. As of December 31, 2017 , the UPB related to impaired loans totaled $ 195.5 million . Including related allowances, these loans are carried at $146.7 million , or 75.0% of UPB. Of these amounts, $86.1 million and $63.6 million of UPB and carrying value, respectively, relate to loans with no specific allowance. As of December 31, 2016 the UPB related to impaired loans, including PCI loans, totaled $244.3 million . Including related allowances, these loans were carried at $188.2 million , or 77.0% of UPB. Of these amounts, $74.7 million and $55.5 million of UPB and carrying value, respectively, relate to loans with no specific allowance. The difference between UPB and carrying value reflects cumulative charge-offs on accounts remaining in process of collection, FSA discounts and allowances. See Note 3 — Loans for more information. • PCI loans — These loans are valued by grouping the loans into performing and non-performing groups and stratifying the loans based on common risk characteristics such as product type, FICO score and other economic attributes. Due to a lack of observable market data, the estimated fair value of these loan portfolios was based on an internal model using unobservable inputs, including discount rates, prepayment rates, delinquency roll-rates, and loss severities. Due to the significance of the unobservable inputs, these instruments are classified as Level 3. • Jumbo Mortgage Loans — The estimated fair value was determined by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Due to the unobservable nature of the inputs used in deriving the estimated fair value of these instruments, these loans are classified as Level 3. Indemnification Assets — The Company's indemnification assets relating to the SFR loans purchased in the OneWest Bank Transaction are measured on the same basis as the related indemnified item, and the underlying SFR loans. The estimated fair values reflect the present value of expected reimbursements under the indemnification agreements based on the loan performance discounted at an estimated market rate, and classified as Level 3. Deposits — The estimated fair value of deposits with no stated maturity such as: demand deposit accounts (including custodial deposits), money market accounts and savings accounts is the amount payable on dem |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY A roll forward of common stock activity is presented in the following table. Issued Less Treasury Outstanding Common Stock — December 31, 2016 206,182,213 (4,094,541 ) 202,087,672 Restricted stock issued 1,391,588 — 1,391,588 Repurchase of common stock — (71,598,013 ) (71,598,013 ) Shares held to cover taxes on vesting restricted shares and other — (583,013 ) (583,013 ) Employee stock purchase plan participation 54,690 — 54,690 Common Stock — December 31, 2017 207,628,491 (76,275,567 ) 131,352,924 During 2017, CIT repurchased a total of $ 3.4 billion in common shares via various capital actions including; an equity tender offer, in which we repurchased approximately 57.3 million common shares at a purchase price of $ 48.00 per share; open market repurchases, in which we repurchased 3,600,560 common shares at an average share price of $ 45.27 ; and an accelerated share repurchase program (ASR), in which CIT paid to the dealer $ 512 million in exchange for the initial delivery of approximately 9,253,668 common shares and upon settlement CIT received an additional 1,452,119 common shares where the overall average price of the ASR was $ 47.82 per share. We declared and paid dividends on our common and preferred stock totaling $ 113.7 million during 2017 and $ 123.0 million on our common stock during 2016 . Accumulated Other Comprehensive Income/(Loss) Total comprehensive income was $521.8 million for the year ended December 31, 2017 , compared to total comprehensive loss of $846.0 million for the year ended December 31, 2016 and comprehensive income of $1,025.9 million for the year ended December 31, 2015 , including accumulated other comprehensive loss of $86.5 million and $140.1 million at December 2017 and 2016 , respectively. The following table details the components of Accumulated Other Comprehensive Loss, net of tax: Components of Accumulated Other Comprehensive Loss (dollars in millions) December 31, 2017 December 31, 2016 Gross Unrealized Income Taxes Net Unrealized Gross Unrealized Income Taxes Net Unrealized Foreign currency translation adjustments $ 0.8 $ (8.8 ) $ (8.0 ) $ (28.6 ) $ (32.8 ) $ (61.4 ) Changes in benefit plan net gain (loss) and prior service (cost)/credit (53.6 ) (0.9 ) (54.5 ) (70.6 ) 5.3 (65.3 ) Unrealized net gains (losses) on available for sale securities (39.5 ) 15.5 (24.0 ) (22.0 ) 8.6 (13.4 ) Total accumulated other comprehensive loss $ (92.3 ) $ 5.8 $ (86.5 ) $ (121.2 ) $ (18.9 ) $ (140.1 ) The following table details the changes in the components of Accumulated Other Comprehensive Loss, net of income taxes: Changes in Accumulated Other Comprehensive 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 available for sale securities Total AOCI Balance as of December 31, 2016 $ (61.4 ) $ (65.3 ) $ (13.4 ) $ (140.1 ) AOCI activity before reclassifications 27.2 10.1 (6.9 ) 30.4 Amounts reclassified from AOCI 26.2 0.7 (3.7 ) 23.2 Net current period AOCI 53.4 10.8 (10.6 ) 53.6 Balance as of December 31, 2017 $ (8.0 ) $ (54.5 ) $ (24.0 ) $ (86.5 ) Balance as of December 31, 2015 $ (65.7 ) $ (69.3 ) $ (7.1 ) $ (142.1 ) AOCI activity before reclassifications (0.4 ) 2.4 (6.3 ) (4.3 ) Amounts reclassified from AOCI 4.7 1.6 — 6.3 Net current period AOCI 4.3 4.0 (6.3 ) 2.0 Balance as of December 31, 2016 $ (61.4 ) $ (65.3 ) $ (13.4 ) $ (140.1 ) Other Comprehensive Income/(Loss) The amounts included in the Statement of Comprehensive Income (Loss) are net of income taxes. Foreign currency translation reclassification adjustments impacting net income were $26.2 million for 2017 , $4.7 million for 2016 and $80.5 million for 2015 . The change in income taxes associated with foreign currency translation adjustments was $24.0 million for the year ended December 31, 2017 , and $3.1 million for the year ended December 31, 2016 , and there were $(35.9) million taxes associated with foreign currency translation adjustments for 2015 . The changes in benefit plans net gain/(loss) and prior service (cost)/credit reclassification adjustments impacting net income was $0.7 million , $1.6 million and $2.0 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The change in income taxes associated with changes in benefit plans net gain/(loss) and prior service (cost)/credit was $(6.2) million , $(1.7) million and $6.8 million for the years ended December 31, 2017 , 2016 , and 2015 respectively. There were $(3.7) million reclassification adjustments impacting net income related to unrealized gains (losses) on available for sale securities for the year ended December 31, 2017 , compared to no reclassification adjustments impacting net income related to unrealized gains (losses) on available for sale securities for the years ended December 31, 2016 and 2015 . The change in income taxes associated with net unrealized gains on available for sale securities was $6.9 million , $4.3 million and $4.3 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The Company has operations primarily in North America. The functional currency for foreign operations is generally the local currency. The value of assets and liabilities of these 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 recorded in other non-interest income. Reclassifications Out of Accumulated Other Comprehensive Loss (dollars in millions) Years Ended December 31, 2017 2016 Gross Amount Tax Net Amount Gross Amount Tax Net Amount Affected Income Statement line item Foreign currency translation adjustments gains (losses) $ 24.1 $ 2.1 $ 26.2 $ 3.5 $ 1.2 $ 4.7 Other Non-interest Income Changes in benefit plan net gain/(loss) and prior service (cost)/credit gains (losses) 0.7 — 0.7 1.8 (0.2 ) 1.6 Operating Expenses Unrealized net gains (losses) on available for sale securities (5.9 ) 2.2 (3.7 ) — — — Other Non-interest Income Total Reclassifications out of AOCI $ 18.9 $ 4.3 $ 23.2 $ 5.3 $ 1.0 $ 6.3 |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital | REGULATORY CAPITAL The Company and the Bank are each subject to various regulatory capital requirements administered by the FRB and the OCC. Quantitative measures established by regulation to ensure capital adequacy require that the Company and the Bank each maintain minimum amounts and ratios of Total, Tier 1 and Common Equity Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. We compute capital ratios in accordance with Federal Reserve capital guidelines and OCC capital guidelines for assessing adequacy of capital for the Company and CIT Bank, respectively. At December 31, 2017 and December 31, 2016 , the regulatory capital guidelines applicable to the Company and Bank were based on the Basel III Final Rule. 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, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Common Equity Tier 1 Capital $ 6,479.8 $ 9,058.9 $ 4,751.6 $ 4,623.2 Tier 1 Capital 6,775.4 9,058.9 4,751.6 4,623.2 Total Capital 7,251.0 9,535.2 5,183.3 5,053.4 Risk-Weighted Assets (1) 44,537.7 64,586.3 34,527.2 34,410.3 Common Equity Tier 1 Capital Ratio Actual 14.5 % 14.0 % 13.8 % 13.4 % Effective minimum ratios under Basel III guidelines (2) 5.750 % 5.125 % 5.750 % 5.125 % Tier 1 Capital Ratio: Actual 15.2 % 14.0 % 13.8 % 13.4 % Effective minimum ratios under Basel III guidelines (2) 7.250 % 6.625 % 7.250 % 6.625 % Total Capital Ratio: Actual 16.3 % 14.8 % 15.0 % 14.7 % Effective minimum ratios under Basel III guidelines (2) 9.250 % 8.625 % 9.250 % 8.625 % Tier 1 Leverage Ratio: Actual 13.8 % 13.9 % 11.8 % 10.9 % Required minimum ratio for capital adequacy purposes 4.0 % 4.0 % 4.0 % 4.0 % (1) The decrease in CIT's Risk-Weighted Assets from December 31, 2016 to December 31, 2017, reflects the sale of the Commercial Air business. (2) Required ratios under Basel III Final Rule in effect as of the reporting date including the partially phased-in capital conservation buffer. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table sets forth the computation of the Basic and Diluted earnings per share: Years Ended December 31, (dollars in millions, except per share amounts; shares in thousands) 2017 2016 2015 Earnings / (Loss) Income (loss) from continuing operations $ 259.4 $ (182.6 ) $ 724.1 Preferred stock dividends 9.8 — — Income (loss) from continuing operations available to common shareholders 249.6 (182.6 ) 724.1 Income (loss) from discontinued operations net of taxes 208.8 (665.4 ) 310.0 Net income (loss) available to common shareholders $ 458.4 $ (848.0 ) $ 1,034.1 Weighted Average Common Shares Outstanding Basic shares outstanding 162,290 201,850 185,500 Stock-based awards (1)(2) 1,660 — 888 Diluted shares outstanding 163,950 201,850 186,388 Basic Earnings Per Common Share Data Income (Loss) from continuing operations $ 1.54 $ (0.90 ) $ 3.90 Income (Loss) from discontinued operation 1.28 (3.30 ) 1.67 Basic income (loss)per common share $ 2.82 $ (4.20 ) $ 5.57 Diluted Earnings Per Common Share Data (2) Income (Loss) from continuing operations $ 1.52 $ (0.90 ) $ 3.89 Income (Loss) from discontinued operation 1.28 (3.30 ) 1.66 Diluted Income (loss) per common share $ 2.80 $ (4.20 ) $ 5.55 (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 1.3 million , 2.7 million , and 2.0 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. (2) Due to the net loss for the year ended December 31, 2016 , the Diluted Earnings Per Share calculation excluded 0.7 million 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, 2016 were utilized for the Diluted Earnings Per Share calculation. |
Non-Interest Income
Non-Interest Income | 12 Months Ended |
Dec. 31, 2017 | |
Noninterest Income [Abstract] | |
Non-Interest Income | NON-INTEREST INCOME The following table sets forth the components of non-interest income: Non-interest Income (dollars in millions) Years Ended December 31, 2017 2016 2015 Rental income on operating leases $ 1,007.4 $ 1,031.6 $ 1,018.1 Other non-interest Income: Fee revenues 113.6 111.6 105.7 Factoring commissions 102.9 105.0 116.5 Gains on sales of leasing equipment 43.8 51.1 57.0 Gains on investments 31.2 34.6 0.9 Gains (losses) on loan and portfolio sales 22.9 34.2 (47.2 ) Gains (losses) on OREO sales 4.3 10.2 (5.4 ) Net gains (losses) on derivatives and foreign currency exchange (5.4 ) 55.9 (37.9 ) Impairment on assets held for sale (32.2 ) (36.6 ) (55.9 ) Termination fees on Canadian total return swap — (280.8 ) — Other revenues 83.1 65.4 15.9 Total other non-interest income 364.2 150.6 149.6 Total non-interest income $ 1,371.6 $ 1,182.2 $ 1,167.7 |
Non-Interest Expenses
Non-Interest Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Noninterest Expense [Abstract] | |
Non-Interest Expenses | NON-INTEREST EXPENSES The following table sets forth the components of Non-interest expenses: Non-interest Expense (dollars in millions) Years Ended December 31, 2017 2016 2015 Depreciation on operating lease equipment $ 296.3 $ 261.1 $ 229.2 Maintenance and other operating lease expenses 222.9 213.6 185.1 Operating expenses: Compensation and benefits 566.3 585.5 549.6 Professional fees 132.3 175.8 135.0 Technology 127.9 133.7 109.2 Insurance 84.7 96.5 61.6 Net occupancy expense 67.8 71.9 49.1 Advertising and marketing 42.2 20.5 30.4 Other 89.6 137.8 114.6 Operating expenses, excluding restructuring costs and intangible asset amortization 1,110.8 1,221.7 1,049.5 Intangible asset amortization 24.7 25.6 13.3 Restructuring costs 53.0 36.2 58.3 Total operating expenses 1,188.5 1,283.5 1,121.1 Goodwill impairment 255.6 354.2 — Loss on debt extinguishments and deposit redemptions 220.0 12.5 1.5 Total non-interest expenses $ 2,183.3 $ 2,124.9 $ 1,536.9 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The following table presents the U.S. and non-U.S. components of income/ (loss) before provision (benefit) for income taxes: Income (Loss) From Continuing Operations Before Provision (Benefit) for Income Taxes (dollars in millions) Years Ended December 31, 2017 2016 2015 U.S. operations $ 251.9 $ 157.5 $ 227.6 Non-U.S. operations (60.3 ) (136.6 ) (41.6 ) Income from continuing operations before (benefit) / provision for income taxes $ 191.6 $ 20.9 $ 186.0 The (benefit) provision for income taxes is comprised of the following: (Benefit) Provision for Income Taxes (dollars in millions) Years Ended December 31, 2017 2016 2015 Current U.S. federal income tax provision $ 73.7 $ 0.3 $ 0.3 Deferred U.S. federal income tax (benefit) / provision 24.8 906.9 (566.3 ) Total federal income tax (benefit) / provision 98.5 907.2 (566.0 ) Current state and local income tax (benefit) / provision (0.7 ) 14.6 5.8 Deferred state and local income tax (benefit) / provision (27.8 ) 1.8 (21.0 ) Total state and local income tax (benefit) / provision (28.5 ) 16.4 (15.2 ) Total non-U.S. income tax (benefit) / provision (31.4 ) 90.8 82.4 Total provision / (benefit) for income taxes $ 38.6 $ 1,014.4 $ (498.8 ) Continuing operations (benefit) / provision $ (67.8 ) $ 203.5 $ (538.0 ) Discontinued operations (benefit) / provision 106.4 810.9 39.2 Total provision / (benefit) for income taxes $ 38.6 $ 1,014.4 $ (498.8 ) 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 2017 2016 2015 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 $ 191.6 $ 67.0 35.0 % $ 20.9 $ 7.3 35.0 % $ 186.0 $ 65.1 35.0 % Increase (decrease) due to: State and local income taxes, net of federal income tax benefit — 4.4 2.3 — 21.0 101.0 — (10.8 ) (5.9 ) Non-deductible goodwill — 58.7 30.7 — 126.2 606.6 — 8.3 4.5 Domestic tax credits — (20.7 ) (10.8 ) — (18.1 ) (87.0 ) — (7.5 ) (4.0 ) Cumulative Method Change — Tax Advantaged Investments (1) — 26.6 13.9 — — — — — — Effect of tax law changes — (22.6 ) (11.8 ) — — — — — — Lower tax rates applicable to non-U.S. earnings — (1.6 ) (0.8 ) — (10.3 ) (49.6 ) — 0.6 0.3 International income subject to U.S. tax — 1.2 0.6 — 29.2 140.3 — 42.1 22.6 Unrecognized tax expense (benefit) — (0.2 ) (0.1 ) — (14.4 ) (69.3 ) — 4.5 2.4 Deferred income taxes on international unremitted earnings — 4.6 2.4 — 41.8 200.7 — 30.2 16.2 International Restructuring — (237.9 ) (124.2 ) — — — — — — Valuation allowances — 60.5 31.6 — 14.7 70.6 — (693.8 ) (373.0 ) International tax settlements — (3.5 ) (1.8 ) — (0.6 ) (2.7 ) — (3.5 ) (1.9 ) Other — (4.3 ) (2.4 ) — 6.7 32.4 — 26.8 14.6 Effective Tax Rate — Continuing operations $ (67.8 ) (35.4 )% $ 203.5 978.0 % $ (538.0 ) (289.2 )% Discontinued Operation Federal income tax rate $ 315.2 $ 110.3 35.0 % $ 145.5 $ 50.9 35.0 % $ 349.2 $ 122.2 35.0 % Increase (decrease) due to: State and local income taxes, net of federal income tax benefit — 7.2 2.3 — (9.5 ) (6.5 ) — 0.6 0.2 Non-deductible penalties — — — — 16.6 11.4 — — — Lower tax rates applicable to non-U.S. earnings — (93.2 ) (29.6 ) — (110.8 ) (76.1 ) — (89.3 ) (25.6 ) International income subject to U.S. tax — 44.2 14.0 — 16.7 11.5 — 8.1 2.3 Deferred income taxes on international unremitted earnings 39.7 12.6 847.3 582.1 — — Other — (1.8 ) (0.5 ) — (0.3 ) (0.3 ) — (2.4 ) (0.7 ) Effective Tax Rate — Discontinued operation $ 106.4 33.8 % $ 810.9 557.1 % $ 39.2 11.2 % Total Effective Tax Rate $ 38.6 7.6 % $ 1,014.4 609.7 % $ (498.8 ) (93.2 )% (1) Amount relates to the change in accounting policy for LIHTC. See Note 1 — Business and Summary of Significant Accounting Policies . 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, 2017 2016 Deferred Tax Assets: Net operating loss (NOL) carry forwards $ 877.3 $ 2,528.3 Basis difference in loans 181.5 281.4 Provision for credit losses 117.8 185.7 Accrued liabilities and reserves 116.6 274.9 FSA adjustments — aircraft and rail contracts — 24.2 Deferred stock-based compensation 19.5 34.5 Domestic tax credits 87.1 40.5 Capital Loss Carryforward 54.0 3.3 Other 46.8 75.8 Total gross deferred tax assets 1,500.6 3,448.6 Deferred Tax Liabilities: Operating leases (1,066.5 ) (1,818.5 ) Loans and direct financing leases (38.1 ) (100.3 ) Basis difference in mortgage backed securities (24.6 ) (100.0 ) Basis difference in federal home loan bank stock (17.5 ) (28.1 ) Non-U.S. unremitted earnings (61.0 ) (1,032.6 ) Unrealized foreign exchange gains (12.5 ) (27.7 ) Goodwill and intangibles (23.5 ) (116.7 ) Other (16.9 ) (21.6 ) Total deferred tax liabilities (1,260.6 ) (3,245.5 ) Total net deferred tax asset before valuation allowances 240.0 203.1 Less: Valuation allowances (280.6 ) (278.4 ) Net deferred tax asset (liability) after valuation allowances $ (40.6 ) $ (75.3 ) Tax Cuts and Jobs Act The Tax Cuts and Jobs Act (or “U.S. Tax Reform legislation”) was enacted on December 22, 2017. The Tax Cuts and Jobs Act signed the following key changes to U.S. tax law: • Reduces the corporate federal income tax rate to 21%, • Creates a territorial tax system (with a one-time mandatory tax on previously deferred foreign earnings), • Broadens the tax base, • Allows for immediate capital expensing of certain qualified property, • Creates anti-base erosion rules that require companies to pay global minimum taxes on foreign earnings, • Subjects certain payments from U.S. corporations to foreign related parties to additional taxes. As a result of the U.S. Tax Reform legislation, the Company recognized a net deferred tax benefit of $ 11.6 million . The Tax Cuts and Jobs Act required management to make certain adjustments to the Company’s year-end financial statements for the effects of the law relating to the remeasurement of deferred taxes, liabilities for taxes due on mandatory deemed repatriation, liabilities for taxes due on other foreign income, and the reassessment of the Company’s valuation allowance. The SEC staff has afforded registrants a measurement period, per Staff Accounting Bulletin No. 118 Income Tax Accounting Implications of the Tax Cuts and Jobs Act, similar to the measurement period used when accounting for business combinations to record adjustments for the effects of the law. As of December 31, 2017, the Company has reviewed information relating to these tax law changes, and concluded that the procedures and methods utilized in developing assumptions, estimates and judgments for final and provisional amounts recorded in the financial statements are appropriate. The Company anticipates refinements to the amounts resulting from the issuance of future legislative and accounting guidance as well as those in the normal course of business, including true-ups resulting from the tax return to be filed later in 2018. However, Management does not anticipate any adjustments to the provisional amounts arising from further analysis of these tax law changes would be material. Net Operating Loss Carry-forwards CIT's reorganization in 2009 constituted an ownership change under Section 382 of the Internal Revenue Code, which placed an annual dollar limit on the use of the remaining pre-bankruptcy NOLs. In general, the Company's annual limitation on use of pre-bankruptcy NOLs is approximately $265 million per annum. NOLs arising in post-emergence years are not subject to this limitation absent another ownership change as defined by Section 382. The OneWest Transaction created no further annual dollar limit under Section 382. As of December 31, 2017 , CIT has deferred tax assets ("DTAs") from continuing operations totaling $877.3 million on its global NOLs. This includes: (1) a DTA of $504.0 million relating to its cumulative U.S. federal NOLs of $2.4 billion ; (2) DTAs of $322.0 million relating to cumulative state NOLs of $6.1 billion , including amounts of reporting entities that file in multiple jurisdictions, and (3) DTAs of $51.1 million relating to cumulative non-U.S. NOLs of $203.8 million . Of the $2.4 billion U.S. federal NOLs, approximately $1.0 billion relate to the pre-emergence bankruptcy period and are subject to the Section 382 limitation discussed above. Approximately $1.4 billion of the U.S. federal NOL is not subject to the limitation. The U.S. federal NOLs will start to expire beginning in 2028 through 2036 . Approximately $188 million of state NOLs will expire in 2018 . While most of the non-U.S. NOLs have no expiration date, a small portion will expire over various periods, including an insignificant amount expiring in 2018 . Valuation Allowances The determination of whether or not to maintain the valuation allowances on certain reporting entities' DTAs requires significant judgment and an analysis of all positive and negative evidence to determine whether it is more likely than not that these future benefits will be realized. ASC 740-10-30-18 states that "future realization of the tax benefit of an existing deductible temporary difference or NOL carry-forward ultimately depends on the existence of sufficient taxable income within the carryback and carry-forward periods available under the tax law." As such, the Company considered the following potential sources of taxable income in its assessment of a reporting entity's ability to recognize its net DTA: • Taxable income in carryback years, • Future reversals of existing taxable temporary differences (deferred tax liabilities), • Prudent and feasible tax planning strategies, and • Future taxable income forecasts. During the third quarter of 2015, Management updated the Company's long-term forecast of future U.S. federal taxable income to include the anticipated impact of the OneWest Bank acquisition. The updated long-term forecast supports the utilization of all of the U.S. federal DTAs (including those relating to the NOLs prior to their expiration). Accordingly, Management concluded that it is more likely than not that the Company will generate sufficient future taxable income within the applicable carry-forward periods to enable the Company to reverse the remaining $690 million of U.S. federal valuation allowance, $647 million of which was recorded as a discrete item in the third quarter, and the remainder of which was included in determining the annual effective tax rate as normal course in the third and fourth quarters of 2015 as the Company recognized additional U.S. taxable income related to the OneWest Bank acquisition. The Company also evaluated the impact of the OneWest Bank acquisition on its ability to utilize the NOLs of its state income tax reporting entities and concluded that no additional reduction to the U.S. state valuation allowance was required in 2015. These state income tax reporting entities include both combined unitary state income tax reporting entities and separate state income tax reporting entities in various jurisdictions. The Company analyzed the state net operating loss carry-forwards for each of these reporting entities to determine the amounts that are expected to expire unused. Based on this analysis, it was determined that the valuation allowance was still required on U.S. state DTAs on certain net operating loss carry-forwards. The Company retained a valuation allowance of $250 million against the DTA on the U.S. state NOLs at December 31, 2016 . During 2017 , Management updated the Company's long term forecast of future U.S. federal taxable income incorporating recent actions including its decision to sell Commercial Air, which closed in the second quarter of 2017. The updated forecasts continue to support no valuation allowance on the U.S. federal DTAs on NOLs but the valuation allowance of $208.6 million was retained on U.S. state DTAs on certain NOLs as of December 31, 2017 . Additionally, as of December 31, 2017, the Company maintained a $ 33.2 million and $ 6.4 million U.S. federal and state valuation allowance, respectively, on the deferred tax asset established on capital loss carryforwards mainly generated from the liquidation of a foreign subsidiary. Capital losses can be carried forward for 5 years to offset future capital gains but requires a valuation allowance until additional capital gains are identified. The Company maintained a valuation allowance of $32.4 million against certain non-U.S. reporting entities' net DTAs at December 31, 2017 , down from $38.9 million at December 31, 2016 . In the evaluation process related to the net DTAs of the Company's other international reporting entities, uncertainties surrounding the future international business operations have made it challenging to reliably project future taxable income. Management will continue to assess the forecast of future taxable income as the business plans for these international reporting entities evolve and evaluate potential tax planning strategies to utilize these net DTAs. The Company's ability to recognize DTAs will be 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, valuation allowances may be adjusted accordingly. Indefinite Reinvestment Assertion The 2017 Tax Cuts and Jobs Act will require a mandatory deemed repatriation of post-1986 undistributed Non-U.S. earnings and profits (“Toll Tax”). The rate applied varies depending on whether the earnings and profit ("E&P") is held in liquid or non-liquid assets, and U.S. Corporations would be subject to a one-time mandatory repatriation toll charge of 15.5% for cash and liquid assets and 8% for non-liquid assets. The toll charge will be assessed regardless of whether or not the company brings back the earnings. The Company has a net deficit in E&P and therefore has no liability for the Toll Tax. As of December 31, 2017, the Company has a deferred income tax liability of $ 61 million for U.S. and non-U.S. taxes mainly related to international withholding taxes. The net reduction of $ 967 million in the deferred income tax liabilities from 2016 was comprised of $ 964 million net reversal of deferred tax liabilities accrued in the current and prior years related to the sale of the Commercial Air business, $ 13.6 million deferred income tax benefit related to the reduction of deferred tax liabilities on previously untaxed E&P due to provisions in the U.S. Tax Reform mentioned above, partially offset by current year earnings activity in Canada and China pre Tax Reform. 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, 2016 $ 36.4 $ 11.7 $ 48.1 Additions for tax positions related to prior years 1.1 1.9 3.0 Reductions for tax positions of prior years (6.4 ) (4.2 ) (10.6 ) Income Tax Audit Settlements (16.6 ) (4.4 ) (21.0 ) Other (1.0 ) 1.3 0.3 Balance at December 31, 2017 $ 13.5 $ 6.3 $ 19.8 During the year ended December 31, 2017 , the Company recorded a net $28.3 million reduction on uncertain tax positions ("UTPs"), including interest and penalties. The majority of the net reduction related to a $21.0 million decrease resulting from favorable audit resolutions with state taxing authorities on UTPs taken on prior year U.S. state income tax returns , and $ 6.6 million related to UTPs in entities that were transferred with the Commercial Air sale. During the year ended December 31, 2017 , the Company recognized $5.4 million income tax benefit relating to interest and penalties on its UTPs. The change in balance is mainly related to the interest and penalties associated with the above mentioned UTPs taken on certain prior-year U.S. state income tax returns and reduction related to UTPs in entities that were transferred with the Commercial Air sale. As of December 31, 2017 , the accrued liability for interest and penalties is $6.3 million . The Company recognizes accrued interest and penalties on unrecognized tax benefits in income tax expense. The entire $19.8 million of unrecognized tax benefits including interest and penalties at December 31, 2017 , would lower the Company's effective tax rate, if realized. The Company believes that the total unrecognized tax benefits before interest and penalties may decrease, in the range of $0 to $5 million , from the resolution of open tax matters, settlements of audits, and the expiration of various statutes of limitations prior to December 31, 2018. Income Tax Audits In December 2017, the Company received notification from the IRS of commencement of a new federal income tax exam for the 2015 tax year. There are no material tax issues raised by the IRS at this initial state of the audit. On January 27, 2016, and June 13, 2016, the Company and the IRS concluded the audit examination of IMB Holdco LLC, the parent company of OneWest Bank and its subsidiaries, which was acquired on August 3, 2015 by CIT, for taxable years ended December 31, 2012, and December 31, 2013, respectively. The audit settlement resulted in no additional regular or alternative minimum tax liability but resulted in a significant cash tax refund, which was reflected in the acquisition date balance sheet. IMB Holdco LLC and its subsidiaries are also under examination by the California Franchise Tax Board ("FTB") for tax years 2009 through 2013. The FTB has completed its audit of the 2009 return and has issued a notice of proposed assessment. The Company, working with its outside advisors, is currently in negotiations to agree to a final Closing Agreement that would settle all outstanding issues for 2009 through 2013. The Company expects final resolution and favorable settlement of the issues in 2018. The issues raised by California were anticipated by the Company, and the Company believes it has provided adequate reserves in accordance with ASC 740 for any potential adjustments. The Company and its subsidiaries are under examination in various states, provinces and countries for years ranging from 2005 through 2015. 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, 2017 | |
Retirement Benefits, Description [Abstract] | |
Retirement, Postretirement And Other Benefit Plans | 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). Benefits under the Plan are based on an employee's age, years of service and qualifying compensation. 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, 2017 . In addition, CIT has a frozen non-contributory, non-US retirement plan which covers a small number of retired participants. Accumulated balances under the Plan and the Supplemental Plan continue to receive periodic interest, subject to certain government limits. The interest credit was 2.84% , 2.61% , and 2.55% for the years ended December 31, 2017 , 2016 , and 2015 , respectively. Postretirement Benefits CIT provides healthcare and life insurance benefits to eligible retired employees. For most eligible retirees, healthcare is contributory and life insurance is non-contributory. All postretirement benefit plans are funded on a pay-as-you-go basis. The Company amended CIT's postretirement benefit plans to discontinue benefits effective December 31, 2012. CIT no longer offers retiree medical, dental and life insurance benefits to those who did not meet the eligibility criteria for these benefits by December 31, 2013. Employees who met the eligibility requirements for retiree health insurance by December 31, 2013 will be offered retiree medical and dental coverage upon retirement. To receive retiree life insurance, employees must have met the eligibility criteria for retiree life insurance by, and must have retired from CIT on or before, December 31, 2013. Obligations and Funded Status The following tables set forth changes in benefit obligation, plan assets, funded status and net periodic benefit cost of the retirement plans and postretirement plans: Obligations and Funded Status (dollars in millions) Retirement Benefits Post-Retirement Benefits 2017 2016 2017 2016 Change in benefit obligation Benefit obligation at beginning of year $ 443.6 $ 445.5 $ 35.2 $ 35.1 Service cost — 0.1 — — Interest cost 16.0 17.1 1.2 1.4 Plan amendments, curtailments, and settlements 3.2 (1.8 ) — — Actuarial loss 9.5 4.7 0.5 0.2 Benefits paid (27.1 ) (21.8 ) (4.1 ) (3.6 ) Other (1) (5.4 ) (0.2 ) 1.7 2.1 Benefit obligation at end of year 439.8 443.6 34.5 35.2 Change in plan assets Fair value of plan assets at beginning of period 355.5 337.9 — — Actual return on plan assets 46.0 28.2 — — Employer contributions 7.9 13.2 2.5 1.5 Plan settlements (0.6 ) (1.8 ) — — Benefits paid (27.1 ) (21.8 ) (4.1 ) (3.6 ) Other (1) (7.4 ) (0.2 ) 1.6 2.1 Fair value of plan assets at end of period 374.3 355.5 — — Funded status at end of year (2)(3) $ (65.5 ) $ (88.1 ) $ (34.5 ) $ (35.2 ) Information on accumulated benefit obligation in excess of plan assets Projected benefit obligation (6) / Accumulated benefit obligation (4)(6) $ 84.7 $ 437.4 (5) (5) Fair value of plan assets $ — $ 349.3 (1) Consists of the following: special termination benefits, plan participants' contributions and currency translation adjustments, primarily related to CIT's Germany pension plan. (2) These amounts were recognized as liabilities in the Consolidated Balance Sheet at December 31, 2017 and 2016 . (3) Company assets of $82.9 million and $86.1 million as of December 31, 2017 and 2016 , respectively, related to the non-qualified U.S. executive retirement plan obligation are not included in plan assets but related liabilities are in the benefit obligation. (4) Since the Plans' benefits are frozen, the rate of compensation increase is no longer an assumption used to calculate the accumulated benefit obligation. Therefore, the accumulated benefit obligation was the same as the projected benefit obligation at December 31, 2017 and 2016 . (5) Not applicable (6) As of December 31, 2017 , the assets for CIT's qualified pension plan exceeded the projected benefit obligations of the Plan. The net periodic benefit cost and other amounts recognized in AOCI consisted of the following: Net Periodic Benefit Costs and Other Amounts (dollars in millions) Retirement Benefits Post-Retirement Benefits 2017 2016 2015 2017 2016 2015 Service cost $ — $ 0.1 $ 0.2 $ — $ — $ — Interest cost 16.0 17.1 16.9 1.2 1.4 1.4 Expected return on plan assets (19.3 ) (18.5 ) (20.1 ) — — — Amortization of prior service cost — — — (0.5 ) (0.5 ) (0.5 ) Amortization of net loss/(gain) 1.6 2.9 2.6 (1.0 ) (0.7 ) (0.3 ) Net settlement and curtailment (gain)/loss and special termination benefit (1) 4.5 — — — — — Net periodic benefit cost (credit) 2.8 1.6 (0.4 ) (0.3 ) 0.2 0.6 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Net loss/(gain) (17.1 ) (5.0 ) 20.9 0.5 0.9 (1.5 ) Amortization, settlement or curtailment recognition of net (loss)/gain (1.5 ) (2.9 ) (2.6 ) 1.1 0.7 0.3 Amortization, settlement or curtailment recognition of prior service credit — — — 0.5 0.5 0.5 Total recognized in OCI (18.6 ) (7.9 ) 18.3 2.1 2.1 (0.7 ) Total recognized in net periodic benefit cost and OCI $ (15.8 ) $ (6.3 ) $ 17.9 $ 1.8 $ 2.3 $ (0.1 ) (1) $ 4.7 million curtailment and special termination benefit costs were recorded in discontinued operations in the accompanying financial statements The estimated net loss for CIT’s retirement benefits that will be amortized from AOCI into net periodic benefit cost over the next fiscal year is $ 1.2 million . The estimated prior service credit and net gain for CIT’s post-retirement benefits that will be amortized from AOCI into net periodic benefit cost over the next fiscal year is $ 0.5 million and $ 0.4 million , respectively. 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 2017 2016 2017 2016 Discount rate 3.45 % 3.73 % 3.50 % 3.75 % Rate of compensation increases — — (1 ) (1 ) Health care cost trend rate Pre-65 (1 ) (1 ) 6.30 % 6.50 % Post-65 (1 ) (1 ) 7.40 % 7.80 % Ultimate health care cost trend rate (1 ) (1 ) 4.50 % 4.50 % Year ultimate reached (1 ) (1 ) 2037 2037 The weighted average assumptions used to determine net periodic benefit costs are as follows: Weighted Average Assumptions Retirement Benefits Post-Retirement Benefits 2017 2016 2017 2016 Discount rate 3.73 % 3.97 % 3.75 % 3.99 % Expected long-term return on plan assets 5.69 % 5.68 % (1 ) (1 ) (1) 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. An increase (decrease) of one-percentage point in assumed healthcare rate trends would increase (decrease) the postretirement benefit obligation by $0.7 million and ( $0.6 million ), respectively. The service and interest cost are not material. Plan Assets CIT maintains a "Statement of Investment Policies and Objectives" which specifies guidelines for the investment, supervision and monitoring of pension assets in order to manage the Company's objective of ensuring sufficient funds to finance future retirement benefits. The asset allocation policy allows assets to be invested between 15% to 35% in Equities, 35% to 65% in Fixed-Income, 15% to 25% in Global Asset Allocation, and 5% to 10% in Alternative Investments. The asset allocation follows a Liability Driven Investing ("LDI") strategy. The policy provides specific guidance on asset class objectives, fund manager guidelines and identification of prohibited and restricted transactions. It is reviewed periodically by the Company's Investment Committee and external investment consultants. There were no direct investments in equity securities of CIT or its subsidiaries included in pension plan assets in any of the years presented. Plan investments are stated at fair value. Common stock traded on security exchanges as well as mutual funds, exchange traded funds and short term investment funds are valued at closing market prices. Such investments are considered Level 1 per fair value hierarchy. Investments in Common Collective Trusts and Alternative Investment Funds are carried at fair value based upon reported net asset values ("NAV"). ASU 2015-7 removes the requirements to categorize investments for which fair value is measured using the NAV per share as practical expedient from the fair value hierarchy. There were no transfers of assets between Levels during 2017 and 2016 . The tables below set forth asset fair value measurements. Fair Value Measurements (dollars in millions) December 31, 2017 Level 1 Level 2 Level 3 Not Classified 1 Total Fair Value Cash $ 8.3 $ — $ — $ — $ 8.3 Mutual Fund 82.5 — — — 82.5 Exchange Traded Funds 18.6 — — — 18.6 Common Stock 21.5 — — — 21.5 Short Term Investment Fund, measured at NAV 1.2 — — — 1.2 Common Collective Trust, measured at NAV — — — 206.8 206.8 Partnership, measured at NAV — — — 9.9 9.9 Hedge Fund, measured at NAV — — — 25.5 25.5 $ 132.1 $ — $ — $ 242.2 $ 374.3 December 31, 2016 Cash $ 5.8 $ — $ — $ — $ 5.8 Mutual Fund 69.9 — — — 69.9 Exchange Traded Funds 26.1 — — — 26.1 Common Stock 16.0 — — — 16.0 Short Term Investment Fund, measured at NAV 1.4 — — — 1.4 Insurance Contracts, measured at NAV — — 6.1 — 6.1 Common Collective Trust, measured at NAV — — — 195.2 195.2 Partnership, measured at NAV — — — 8.6 8.6 Hedge Fund, measured at NAV — — — 26.4 26.4 $ 119.2 $ — $ 6.1 $ 230.2 $ 355.5 (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, in accordance with ASU 2015-7. The table below sets forth changes in the fair value of the Plan's Level 3 assets for the year ended December 31, 2017 : Fair Value of Level 3 Assets (dollars in millions) Insurance Contracts December 31, 2016 $ 6.1 Realized and Unrealized losses (0.3 ) Purchases, sales, and settlements, net (5.8 ) December 31, 2017 $ — 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 2018 . For all other plans, CIT currently expects to contribute $10 million during 2018 . 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 2018 $ 28.0 $ 2.9 $ 0.2 2019 27.2 2.9 0.3 2020 29.0 2.8 0.3 2021 29.1 2.7 0.3 2022 28.0 2.6 0.3 2023 – 2027 138.0 11.4 0.5 Savings Incentive Plan CIT has a number of defined contribution retirement plans covering certain of its U.S. employees which qualify under section 401(k) of the Internal Revenue Code. Generally, 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 $18.7 million , $15.8 million and $19.0 million for the years ended December 31, 2017 , 2016 , and 2015 , 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 — 5,405,837 at December 31, 2017 (excludes 2,775,499 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"). Compensation expense related to equity-based awards are measured and recorded in accordance with ASC 718, Stock Compensation. 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 (requisite service period), which is generally three years for restricted stock/units, under the graded vesting method, whereby each vesting tranche of the award is amortized separately as if each were a separate award. Compensation expenses for PSUs that cliff vest are recognized over the vesting period, which is generally three years, and on a straight-line basis. Operating expenses includes $41.9 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, 2017 , including $41.3 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 $36.6 million in 2016 and $63.4 million in 2015 . Total unrecognized compensation cost related to nonvested awards was $21.9 million at December 31, 2017 . That cost is expected to be recognized over a weighted average period of 1.88 years . Employee Stock Purchase Plan In December 2010, the Company adopted the CIT Group Inc. 2011 Employee Stock Purchase Plan (the "ESPP"), which was approved by shareholders in May 2011. Eligibility for participation in the 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. The ESPP is available to employees in the United States and to certain international employees. 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 54,684 , 72,325 , and 46,770 shares were purchased under the plan in 2017 , 2016 and 2015 , respectively. Restricted Stock Units and Performance Stock Units Under the 2016 Plan, 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 or for retention or other purposes. RSUs granted to employees and members of the Board during 2017 and 2016 generally were scheduled to vest either one third per year for three years or 100% after three years . Beginning in 2014 , RSUs granted to employees were also subject to performance-based vesting based on the Company's pre-tax income results or beginning in 2016 , for certain employees, a minimum Tier 1 Capital ratio. A limited number of vested stock awards are scheduled to remain subject to transfer restrictions through the first anniversary of the grant date for members of the Board who elected to receive stock in lieu of cash compensation for their retainer. Certain RSUs granted to directors, and in limited instances to employees, are designed to settle in cash and are accounted for as "liability" awards as prescribed by ASC 718. The values of these cash-settled RSUs are re-measured at the end of each reporting period until the award is settled. Certain senior executives receive long-term incentive (LTI) awards, which are generally granted at the discretion of the Company annually. During 2017 and 2016, LTI has been awarded 50% in the form of Performance Share Units (PSUs) based on after-tax Return on Tangible Common Stockholder's Equity (ROTCE), and 50% in the form of performance based RSUs (described above). A total shareholder return (TSR) adjustment factor, described more fully below, was introduced to the 2016 PSUs. During 2015 , LTI was awarded by the Company as two forms of PSUs. The 2017 PSUs may be earned at the end of a three -year performance period ( 2017 - 2019 ) based on after-tax ROTCE, which may be increased or decreased by up to 20% depending on the Company’s 3-year cumulative TSR results relative to the component companies of the KBW Nasdaq Bank Index for the performance period. No increase is permitted if the Company’s TSR for the performance period is negative, and the overall payout for the 2017 PSUs, including the TSR adjustment factor, may range from 0% to a maximum of 150% of target. The 2016 PSUs may be earned at the end of a three -year performance period ( 2016 — 2018 ) from 0% to 150% of target based on after-tax ROTCE. The first form of 2015 PSUs, "2015 PSUs-Return on Average Earnings Assets (ROA) / Earnings Per Share (EPS)," may also be earned at the end of a three -year performance period ( 2015 — 2017 ) from 0% to 150% of target based on performance against two pre-established performance measures: fully diluted EPS (weighted 75% ) and pre-tax ROA (weighted 25% ). The second form of 2015 PSUs, "2015 PSUs-PreTax ROTCE," are earned in each year during a three -year performance period ( 2015 — 2017 ) from 0% to a maximum of 150% of target based on pre-tax ROTCE as follows: (1) one-third based on the pre-tax ROTCE for the first year of the performance period; (2) one-third based on the average pre-tax ROTCE for the first two years of the performance period; and (3) one-third based on the three-year average ROTCE during the performance period. Performance measures for all PSU awards have a minimum threshold level of performance that must be achieved to trigger any payout; if the threshold level of performance is not achieved, then no portion of the PSU target will be payable. The fair value of RSUs and PSUs that vested and settled in stock during 2017 , 2016 and 2015 was $59.0 million , $52.4 million and $56.2 million , respectively. The fair value of RSUs that vested and settled in cash during 2017 , 2016 and 2015 was $0.3 million , $0.2 million and $0.2 million , respectively. The following tables summarize restricted stock and RSU activity for 2017 and 2016 : Stock and Cash — Settled Awards Outstanding Stock-Settled Awards Cash-Settled Awards December 31, 2017 Number of Shares Weighted Average Grant Date Value Number of Shares Weighted Average Grant Date Value Unvested at beginning of period 3,043,451 $ 37.70 12,072 $ 37.81 Vested / unsettled awards at beginning of period 243,335 46.10 — — PSUs - granted to employee 194,979 41.67 — — PSUs - adjustments for performance versus targets (30,758 ) 47.76 — — RSUs - granted to employees 826,634 41.30 — — RSUs - granted to directors 32,623 46.03 8,506 46.66 Forfeited / cancelled (144,615 ) 36.41 — — Vested / settled awards (1,390,151 ) 40.92 (5,507 ) 39.42 Vested / unsettled awards (246,057 ) 45.09 — — Unvested at end of period 2,529,441 $ 37.55 15,071 $ 42.22 December 31, 2016 Unvested at beginning of period 3,384,297 $ 45.55 9,623 $ 44.97 Vested / unsettled awards at beginning of period 39,626 40.46 — — PSUs - granted to employee 284,640 32.80 — — PSUs - incremental for performance above 2012-14 targets 19,938 42.21 — — RSUs - granted to employees 1,429,554 30.32 — — RSUs - granted to directors 38,957 33.37 7,496 33.35 Forfeited / cancelled (276,627 ) 38.61 — — Vested / settled awards (1,633,599 ) 45.28 (5,047 ) 44.83 Vested / unsettled awards (243,335 ) 46.10 — — Unvested at end of period 3,043,451 $ 37.70 12,072 $ 37.81 |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2017 | |
Commitments [Abstract] | |
Commitments | COMMITMENTS The accompanying table summarizes credit-related commitments, as well as purchase and funding commitments: Commitments (dollars in millions) December 31, 2017 Due to Expire December 31, 2016 Within One Year After One Year Total Outstanding Total Outstanding Financing Commitments Financing assets $ 1,594.9 $ 4,669.6 $ 6,264.5 $ 6,008.1 Letters of credit Standby letters of credit 21.2 192.1 213.3 232.2 Other letters of credit 14.2 — 14.2 14.0 Guarantees Deferred purchase agreements 2,068.1 — 2,068.1 2,060.5 Guarantees, acceptances and other recourse obligations 2.1 — 2.1 1.6 Purchase and Funding Commitments Aerospace purchase commitments (1) — — — 8,683.5 Rail and other purchase commitments 187.8 8.3 196.1 300.7 (1) The Aerospace purchase commitments in the table above are associated with Aerospace discontinued operations, which were transferred to the purchaser when Aerospace was sold in April 2017. Discontinued operations Financing commitments include HECM reverse mortgage loan commitments associated with Financial Freedom discontinued operations of $34 million at December 31, 2017 and $42 million at December 31, 2016 . In addition, as servicer of HECM loans, the Company is required to repurchase the loan out of the GNMA HMBS securitization pools once the outstanding principal balance is equal to or greater than 98% of the maximum claim amount or when the property forecloses to OREO. In October 2017, the Company announced the sale of the Financial Freedom business and reverse mortgage loans in connection with the Financial Freedom Transaction. Upon investor consent to servicing transfer in connection with the sale, CIT shall no longer have this obligation. Refer to Note 2 - Discontinued Operations . Financing Commitments Commercial Financing commitments, referred to as loan commitments or lines of credit, primarily reflect CIT's agreements to lend to its customers, subject to the customers' compliance with contractual obligations. Included in the table above are commitments that have been extended to and accepted by customers, clients or agents, but on which the criteria for funding have not been completed of $881.3 million at December 31, 2017 and $572 million at December 31, 2016 . Financing commitments also include credit line agreements to Business Capital clients that are cancellable by us only after a notice period. The notice period is typically 90 days or less. The amount available under these credit lines, net of the amount of receivables assigned to us, was $190 million at December 31, 2017 and $335 million at December 31, 2016 . 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 includes approximately $1.6 billion and $ 1.7 billion of undrawn financing commitments at December 31, 2017 and December 31, 2016 , respectively, for instances where the customer is not in compliance with contractual obligations or does not have adequate collateral to borrow against the unused facility, and therefore CIT does not have the contractual obligation to lend. At December 31, 2017 , substantially all undrawn financing commitments were senior facilities. Most of the Company's undrawn and available financing commitments are in the Commercial Banking segment. The table above excludes uncommitted revolving credit facilities extended by Business Capital to its clients for working capital purposes. In connection with these facilities, Business Capital 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. Consumer The Company is committed to fund draws on certain reverse mortgages in conjunction with loss sharing agreements with the FDIC. The FDIC agreed to indemnify the Company for losses on the first $200 million of draws that occur subsequent to the purchase date. In addition, the FDIC agreed to fund any other draws in excess of the $200 million . As of December 31, 2017 and December 31, 2016 , $134 million and $145 million , respectively, had been advanced on the reverse mortgage loans post March 2009. The Company's exposure for additional draws on loan commitments on these purchased reverse mortgage loans was $66 million at December 31, 2017 and $55 million at December 31, 2016 . The aggregate amount advanced and the remaining loan commitments on these purchased loans increase or decrease as the Company funds additional draws or outstanding draws are repaid. See Note 5 — Indemnification Assets for further discussion on the loss sharing agreements with the FDIC. Also included was the Company's commitment to fund draws on certain home equity lines of credit ("HELOCs"). Under the HELOC participation and servicing agreement entered into with the FDIC, the FDIC agreed to reimburse the Company for a portion of the draws that the Company made on the purchased HELOCs. Letters of Credit In the normal course of meeting the needs of clients, CIT sometimes enters into agreements to provide financing and letters of credit. Standby letters of credit obligate the issuer of the letter of credit to pay the beneficiary if a client on whose behalf the letter of credit was issued does not meet its obligation. These financial instruments generate fees and involve, to varying degrees, elements of credit risk in excess of amounts recognized in the Consolidated Balance Sheets. To minimize potential credit risk, CIT generally requires collateral and in some cases additional forms of credit support from the client. Deferred Purchase Agreements A Deferred Purchase Agreement ("DPA") is provided in conjunction with factoring, whereby CIT provides a client with credit protection for trade receivables without purchasing the receivables. The trade receivable terms are generally ninety days or less. If the client's customer is unable to pay an undisputed receivable solely as the result of credit risk, then CIT purchases the receivable from the client. The outstanding amount in the table above is the maximum potential exposure that CIT would be required to pay under all DPAs. This maximum amount would only occur if all receivables subject to DPAs default in the manner described above, thereby requiring CIT to purchase all such receivables from the DPA clients. The table above includes $1,979 million and $1,962 million of DPA credit protection at December 31, 2017 and December 31, 2016 , 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 $89 million and $99 million available under DPA credit line agreements, net of the amount of DPA credit protection provided at December 31, 2017 and December 31, 2016 , 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. The methodology used to determine the DPA liability is similar to the methodology used to determine the allowance for loan losses associated with the finance loans, which reflects embedded losses based on various factors, including expected losses reflecting the Company's internal customer and facility credit ratings. The liability recorded in Other Liabilities related to the DPAs totaled $5.3 million and $6.1 million at December 31, 2017 and December 31, 2016 , respectively. Purchase and Funding Commitments CIT's purchase commitments relate primarily to purchases of rail equipment. The Company's rail business entered into commitments to purchase railcars from multiple manufacturers. At December 31, 2017 , approximately 1,550 railcars remain to be purchased from manufacturers with deliveries through 2019 . Rail equipment purchase commitments are at fixed prices subject to price increases for certain materials. Other purchase commitments primarily relate to Equipment Finance. Other Commitments The Company has commitments to invest in affordable housing investments, and other investments qualifying for community reinvestment tax credits. These commitments were $67 million at December 31, 2017 and $62 million at December 31, 2016 . These commitments are payable on demand and are recorded in Other liabilities. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Loss Contingency [Abstract] | |
Contingencies | 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 relating to matters that arise in connection with the conduct of its business (collectively, "Litigation"). In view of the inherent difficulty of predicting the outcome of Litigation matters, particularly when such matters are in their early stages or where the claimants seek indeterminate damages, CIT cannot state with confidence what the eventual outcome of the pending Litigation will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss, fines, or penalties related to each pending matter will be, if any. In accordance with applicable accounting guidance, CIT establishes reserves for Litigation when those matters present loss contingencies as to which it is both probable that a loss will occur and the amount of such loss can be reasonably estimated. Based on currently available information, CIT believes that the results of Litigation that is currently pending, taken together, 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 $90 million in excess of established reserves and insurance related to those matters, if any. 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, 2017 . The matters underlying the estimated range will change from time to time, and actual results may vary significantly from this estimate. Those Litigation matters for which an estimate is not reasonably possible or as to which a loss does not appear to be reasonably possible, based on current information, are not included within this estimated range and, therefore, this estimated range does not represent the Company's maximum loss exposure. The foregoing statements about CIT's Litigation are based on the Company's judgments, assumptions, and estimates and are necessarily subjective and uncertain. The Company has several hundred threatened and pending judicial, regulatory and arbitration proceedings at various stages. Several of the Company's significant Litigation matters are described below. Brazilian Tax Matter Banco Commercial Investment Trust do Brasil S.A. ("Banco CIT"), CIT's Brazilian bank subsidiary, was sold in a stock sale in the fourth quarter of 2015, thereby transferring the legal liabilities of Banco CIT to the buyer. Under the terms of the stock sale, CIT remains liable for indemnification to the buyer for any losses resulting from certain Imposto Sobre Circulaco de Mercadorias e Servicos ("ICMS") tax appeals relating to disputed local tax assessments on leasing services and importation of equipment (the "ICMS Tax Appeals"). Notices of infraction were issued to Banco CIT relating to the payment of ICMS taxes charged by Brazilian states in connection with the importation of equipment. The state of S ã o Paulo claims that Banco CIT should have paid it ICMS taxes for tax years 2006 — 2009 because Banco CIT, the purchaser, was located in S ã o Paulo. Instead, the ICMS taxes were paid to the state of Espirito Santo where the imported equipment arrived. A regulation issued by S ã o Paulo in December 2013 reaffirms a 2009 agreement by S ã o Paulo to conditionally recognize ICMS tax payments made to Espirito Santo. An assessment related to taxes paid to Espirito Santo was upheld in a ruling issued by the administrative court in May 2014. That ruling has been appealed. Another assessment related to taxes paid to Espirito Santo remains pending. Petitions seeking S ã o Paulo's recognition of the taxes paid to Espirito Santo have been filed in a general amnesty program. Hawaiian Foreclosure Litigation Claims Based on recent rulings of the Hawaii Supreme Court, lawsuits have been filed against CIT in Hawaii alleging technical violations in non-judicial foreclosures. Similar cases have been filed against other mortgage lenders in Hawaii. The Hawaii Supreme Court did not establish a clear methodology for calculating alleged damages if a violation is proven and there is substantial dispute in this regard. In many instances the borrower had no equity in the home at the time of foreclosure. Damages sought in these cases include any lost equity, compensation for loss of use of the house and, in some cases, treble or punitive damages under Hawaii's unfair practices law. At this time, the Company does not have sufficient information to make an assessment of the outcome or the impact of these cases. HUD OIG Investigation In 2009, OneWest Bank acquired the reverse mortgage loan portfolio and related servicing rights of Financial Freedom Senior Funding Corporation, including HECM loans, from the FDIC as Receiver for IndyMac Federal Bank. HECM loans are insured by the FHA, and administered by HUD. In addition, Financial Freedom is the servicer of HECM loans owned by third party investors. Beginning in the third quarter of 2015, the Office of the Inspector General for HUD (the "HUD OIG"), served a series of subpoenas on the Company regarding HECM loans. The subpoenas requested documents and other information related to Financial Freedom's HECM loan origination and servicing business, including the curtailment of interest payments on HECM insurance claims. On May 16, 2017 CIT entered into a settlement of approximately $ 89 million to resolve the servicing related claims. The settlement was within CIT’s existing reserves and included interest to be reimbursed to HUD. CIT has provided information and documents responsive to the subpoena’s request for information relating to the mortgage originations and does not currently expect the outcome of the remaining loan origination matter to have a material adverse effect on CIT’s financial condition or results of operations. NY Attorney General In the second quarter of 2017, the Office of the Attorney General of the State of New York (“NYAG”), served a subpoena on the Company regarding HECM loans. The subpoena requested documents and other information related to Financial Freedom’s HECM loan business in the State of New York. The NYAG subsequently withdrew the subpoena and has requested the Company’s continued voluntary cooperation with the inquiry. The Company is continuing to cooperate with the NYAG’s office and has produced certain documents. The Company does not have sufficient information to make an assessment of the outcome or the impact of the NYAG’s ongoing inquiry. Ocwen Indemnification Obligations In connection with the OneWest acquisition, CIT assumed the obligation to indemnify Ocwen Loan Servicing, LLC (“Ocwen”) against certain claims that may arise from servicing errors, which are deemed attributable to the period prior to June 2013, when OneWest sold its servicing business to Ocwen, such as repurchase demands, non-recoverable servicing advances and compensatory fees imposed by the GSEs for servicer delays in completing the foreclosure process within the prescribed timeframe established by the servicer guides or agreements, exclusive of losses or repurchase obligations and certain agency fees, and which are limited to an aggregate amount of $ 150 million for claims noticed by February 28, 2017 to CIT. Ocwen is responsible for liabilities arising from servicer obligations following the service transfer date because substantially all risks and rewards of ownership were transferred; except for certain Agency fees or loan repurchase amounts. As of September 30, 2017, the cumulative indemnification payments totaled approximately $ 56 million , which reduced the Company’s $ 150 million maximum potential indemnity obligation to Ocwen. On August 12, 2016, Ocwen filed a Demand for Arbitration against CIT alleging that CIT failed to meet its contractual obligations to indemnify Ocwen for losses allegedly suffered in connection with the sale. Among other things, Ocwen alleged that CIT failed to perform its obligations under the sale agreement and breached its representations and warranties in the agreement. On November 30, 2017, the Company filed a Form 8-K announcing that CIT and Ocwen agreed to a settlement of $ 29.9 million to resolve the claims and that the Company was adequately reserved for the settlement which would not have a material effect on the Company’s financial condition or results of operations. Mortgage Servicing Consent Orders As a result of CIT Group Inc.’s acquisition of OneWest Bank, CIT (as successor to IMB Holdco LLC) is subject to a Consent Order with the FRB related to residential mortgage servicing operations. The original consent order was entered into with IMB Holdco LLC and the Office of Thrift Supervision in April 2011. Following IMB Holdco’s conversion to a bank holding company the Consent Order was amended in March 2014 to name the FRB as the appropriate regulator to administer the Order. A similar Consent Order had been entered into with the OCC, but in July 2015, immediately prior to completion of CIT’s acquisition of OneWest Bank the OCC terminated its Consent Order. However, the FRB continued its Consent Order in place and oversight was transferred to the Federal Reserve Bank New York and CIT succeeded to the Consent Order obligations. The improvements required by the Consent Order had been implemented including the completion of an Independent Foreclosure Review in 2014, resulting in approximately $ 12.7 million of remediation payments being made to borrowers. On January 12, 2018, the FRB announced the termination of enforcement actions related to residential mortgage loan servicing and foreclosure processing issued in 2011 and 2012 against 10 banks including CIT. The FRB also announced civil money penalties against certain of the banks that had not yet been fined for their mortgage servicing deficiencies related to those enforcement actions. CIT was adequately reserved for the penalty which will not have a material effect on the Company’s financial condition or results of operations. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Lease Commitments | LEASE COMMITMENTS Lease Commitments The following table presents future minimum rental payments under non-cancellable long-term lease agreements for premises and equipment at December 31, 2017 : Future Minimum Rentals (dollars in millions) Years Ended December 31, 2018 $ 47.5 2019 46.0 2020 40.1 2021 29.6 2022 16.9 Thereafter 69.7 Total $ 249.8 In addition to fixed lease rentals, leases generally require payment of maintenance expenses and real estate taxes, both of which are subject to escalation provisions. Minimum payments include $49.2 million ( $16.4 million for 2018 ) which will be recorded against the facility exiting liability when paid and therefore will not be recorded as rental expense in future periods. Minimum payments have not been reduced by minimum sublease rentals of $39.9 million due in the future under non-cancellable subleases which will be recorded against the facility exiting liability when received. Rental expense for premises and equipment was as follows. The 2015 balances include five months of activity related to OneWest Bank. Years Ended December 31, (dollars in millions) 2017 2016 2015 Premises $ 34.9 $ 42.1 $ 28.7 Equipment 1.7 1.7 1.8 Total $ 36.6 $ 43.8 $ 30.5 |
Certain Relationships And Relat
Certain Relationships And Related Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Certain Relationships And Related Transactions | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS CIT has an equity interest in Strategic Credit Partners Holdings LLC (the "JV"), a joint venture between CIT Group Inc. ("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, 2017 , loans of $241.1 million were sold to the joint venture. CIT also maintains an equity interest of 10% in the JV, and our investment was $7.3 million and $5.4 million at December 31, 2017 and 2016 , respectively. On July 10, 2017, CIT Northbridge Credit LLC (“Northbridge”) was formed. Northbridge is an asset-based-lending joint venture between CIT Bank, N.A. (“CIT Bank”) and Allstate Insurance Company and its subsidiary (“Allstate”) that will extend credit in asset-based lending middle-market loans. CIT 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. At December 31, 2017 CIT’s investment was $ 5 million , with the expectation of additional investment as the joint venture grows. Management fees were earned by CIT on loans under management. The joint venture is not consolidated and the investment is being accounted for using the equity method. CIT invests in various trusts, partnerships, and limited liability corporations established in conjunction with structured financing transactions of equipment, power and infrastructure projects. CIT's interests in these entities were entered into in the ordinary course of business. Other assets included approximately $248 million and $220 million at December 31, 2017 , and 2016 , 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, 2017 | |
Segment Reporting [Abstract] | |
Business Segment Information | BUSINESS SEGMENT INFORMATION Management's Policy in Identifying Reportable Segments CIT's reportable segments are primarily based upon industry categories, geography, target markets and customers served, and, to a lesser extent, the core competencies relating to product origination, distribution methods, operations and servicing and the nature of their regulatory environment. This segment reporting is reflective of the Company's internal reporting structure and is consistent with the presentation of financial information to the chief operating decision maker. Types of Products and Services Commercial Banking consists of four divisions. Through its Commercial Finance, Real Estate Finance, and Business Capital divisions, Commercial Banking provides lending, leasing and other financial and advisory services, primarily to small and middle-market companies across select industries. Business Capital also provides factoring, receivables management products and secured financing to the retail supply chain. The fourth division, Rail, provides equipment leasing and secured financing to the rail industry. Revenue is generated from interest earned on loans, rents on equipment leased, fees and other revenue from lending and leasing activities, capital markets transactions and banking services, commissions earned on factoring and related activities, and to a lesser extent, interest and dividends on investments. Revenue is also generated from gains on asset sales. Consumer Banking includes Other Consumer Banking and Legacy Consumer Mortgages. Other Consumer Banking offers mortgage loans, and deposits to its consumer customers. The division offers jumbo residential mortgage loans and conforming residential mortgage loans, primarily in Southern California. Mortgage loans are originated directly through leads generated from the retail branch network, the commercial business units, as well as indirectly through institutional intermediaries. Consumer lending includes product specialists, internal sales support and origination processing, structuring and closing. Retail banking is the primary deposit gathering business of CIT Bank and operates through 70 retail branches in Southern California and an online direct channel. We offer a broad range of deposit 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 Small Business Administration ("SBA") 504 loans (generally, the financing provides growing small businesses with long-term, fixed-rate financing for major fixed assets, such as land and building) and 7(a) (generally, for purchase/refinance of owner occupied commercial real estate, 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 holds the reverse mortgage and SFR mortgage portfolios acquired in the OneWest Transaction. Certain of these assets and related receivables include loss sharing arrangements with the FDIC, which will continue to reimburse CIT Bank, N.A. for certain losses realized due to foreclosure, short-sale, charge-offs or a restructuring of a single family residential mortgage loan pursuant to an agreed upon loan modification framework. NSP includes businesses and portfolios that we no longer consider strategic. The China portfolio was predominately the remaining operation at December 31, 2017 . Corporate and Other Certain items are not allocated to operating segments and are included in Corporate & Other. Some of the more significant items include interest income on investment securities, a portion of interest expense, primarily related to corporate liquidity costs (interest expense), mark-to-market adjustments on non-qualifying derivatives (other non-interest income), restructuring charges for severance and facilities exit activities (operating expenses), certain intangible asset amortization expenses (other expenses) and loss on debt extinguishments. Segment Profit and Assets The following table presents segment data. The 2015 include results of OneWest Bank's operations for approximately five months compared to a full year in 2016. Segment Pre-tax Income (Loss) (dollars in millions) For the year ended December 31, 2017 Commercial Banking Consumer Banking Non-Strategic Portfolios Corporate & Other Total CIT Interest income $ 1,248.0 $ 378.1 $ 22.9 $ 186.6 $ 1,835.6 Interest expense (benefit) 517.7 (51.8 ) 15.2 236.6 717.7 Provision for credit losses 88.7 25.9 — — 114.6 Rental income on operating leases 1,007.4 — — — 1,007.4 Other non-interest income 291.0 4.1 3.1 66.0 364.2 Depreciation on operating lease equipment 296.3 — — — 296.3 Maintenance and other operating lease expenses 222.9 — — — 222.9 Goodwill impairment 255.6 — — — 255.6 Operating expenses / loss on debt extinguishment 691.7 401.5 12.7 302.6 1,408.5 Income (loss) from continuing operations before provision (benefit) for income taxes $ 473.5 $ 6.6 $ (1.9 ) $ (286.6 ) $ 191.6 Select Period End Balances Loans $ 23,159.3 $ 5,954.6 $ — $ — $ 29,113.9 Credit balances of factoring clients (1,468.6 ) — — — (1,468.6 ) Assets held for sale 1,334.2 865.6 63.3 — 2,263.1 Operating lease equipment, net 6,738.9 — — — 6,738.9 For the year ended December 31, 2016 Interest income $ 1,287.9 $ 420.8 $ 80.8 $ 122.0 $ 1,911.5 Interest expense 519.1 10.2 47.2 176.7 753.2 Provision for credit losses 183.1 11.7 (0.1 ) — 194.7 Rental income on operating leases 1,020.0 — 11.6 — 1,031.6 Other non-interest income 293.8 40.0 52.1 (235.3 ) 150.6 Depreciation on operating lease equipment 261.1 — — — 261.1 Maintenance and other operating lease expenses 213.6 — — — 213.6 Goodwill impairment 34.8 319.4 — — 354.2 Operating expenses / loss on debt extinguishment 761.6 380.9 42.2 111.3 1,296.0 Income (loss) from continuing operations before provision (benefit) for income taxes $ 628.4 $ (261.4 ) $ 55.2 $ (401.3 ) $ 20.9 Select Period End Balances Loans $ 22,562.3 $ 6,973.6 $ — $ — $ 29,535.9 Credit balances of factoring clients (1,292.0 ) — — — (1,292.0 ) Assets held for sale 357.7 68.2 210.1 — 636.0 Operating lease equipment, net 7,486.1 — — — 7,486.1 For the Year Ended December 31, 2015 Interest income $ 1,029.1 $ 176.1 $ 184.8 $ 55.2 $ 1,445.2 Interest expense 481.4 24.9 121.4 103.7 731.4 Provision for credit losses 143.7 8.7 6.2 — 158.6 Rental income on operating leases 981.4 — 36.7 — 1,018.1 Other non-interest income 302.6 5.4 (96.8 ) (61.6 ) 149.6 Depreciation on operating lease equipment 218.3 — 10.9 — 229.2 Maintenance and other operating lease costs 185.1 — — — 185.1 Operating expenses / loss on debt extinguishment 727.4 158.4 123.9 112.9 1,122.6 Income (loss) from continuing operations before provision (benefit) for income taxes $ 557.2 $ (10.5 ) $ (137.7 ) $ (223.0 ) $ 186.0 Select Period End Balances Loans $ 23,332.4 $ 7,186.3 $ — $ — $ 30,518.7 Credit balances of factoring clients (1,344.0 ) — — — (1,344.0 ) Assets held for sale 435.1 45.1 1,577.5 — 2,057.7 Operating lease equipment, net 6,851.7 — — — 6,851.7 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 before attribution of noncontrolling interests U.S. 2017 $ 46,825.9 $ 3,046.1 $ 251.9 $ 287.3 2016 53,252.9 2,755.6 157.5 99.3 2015 55,491.1 2,084.5 227.6 876.7 Europe 2017 1,424.0 119.6 (34.5 ) (19.8 ) 2016 8,575.7 139.7 (189.2 ) (246.8 ) 2015 8,351.8 125.0 (227.6 ) (304.6 ) Other foreign 2017 1,028.8 41.5 (25.8 ) (8.1 ) 2016 2,341.6 198.4 52.6 (35.1 ) 2015 3,549.0 403.4 186.0 151.9 Total consolidated 2017 49,278.7 3,207.2 191.6 259.4 2016 64,170.2 3,093.7 20.9 (182.6 ) 2015 67,391.9 2,612.9 186.0 724.0 (1) Includes Assets of discontinued operation of $501.3 million at December 31, 2017 , $13,220.7 million at December 31, 2016 and $13,059.6 million at December 31, 2015 . |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets | GOODWILL AND INTANGIBLE ASSETS The following table summarizes the goodwill balance by segment. Goodwill (dollars in millions) Commercial Consumer Total December 31, 2015 (1) $ 689.0 $ 374.2 $ 1,063.2 Impairment (2) (34.8 ) (319.4 ) (354.2 ) Other activity (3) (12.0 ) (11.6 ) (23.6 ) December 31, 2016 642.2 43.2 685.4 Impairment (2) (255.6 ) — (255.6 ) Transfers to Held for Sale (65.1 ) — (65.1 ) Foreign exchange translation 5.2 — 5.2 December 31, 2017 $ 326.7 $ 43.2 $ 369.9 (1) In preparing the interim financial statements for the quarter ended June 30, 2016, the Company discovered and corrected an immaterial error impacting the December 31, 2015 goodwill allocation among Consumer Banking and Commercial Banking in the amount of $23.2 million . The reclassification had no impact on the Company's Balance Sheet and Statements of Income or Cash Flows for any period. (2) The impairment charges exclude goodwill impairment recorded upon transfer of assets to held for sale of $4 million and $15 million for the years ended December 31, 2016 and 2015, respectively. (3) Includes measurement period adjustments related to the OneWest transaction, as described below, and foreign exchange translation. The December 31, 2015 goodwill included amounts from CIT's emergence from bankruptcy in 2009, and its 2014 acquisitions of Capital Direct Group and its subsidiaries ("Direct Capital"), and NACCO, an independent full service railcar lessor in Europe. On January 31, 2014, CIT acquired 100% of the outstanding shares of Paris-based NACCO. The purchase price was approximately $250 million and the acquired assets and liabilities were recorded at their estimated fair values as of the acquisition date, resulting in $77 million of goodwill. On August 1, 2014, CIT Bank acquired 100% of Direct Capital, a U.S. based lender providing equipment financing to small and mid-sized businesses operating across a range of industries. The purchase price was approximately $230 million and the acquired assets and liabilities were recorded at their estimated fair values as of the acquisition date resulting in approximately $170 million of goodwill. In addition, intangible assets of approximately $12 million were recorded relating mainly to the valuation of existing customer relationships and trade names. On August 3, 2015 , CIT acquired 100% of IMB HoldCo LLC, the parent company of OneWest Bank. The purchase price was approximately $3.4 billion and the acquired assets and liabilities were recorded during the third quarter 2016 at their estimated fair value as of the acquisition date resulting in $598 million of goodwill recorded in the third quarter of 2016 , which was ultimately adjusted to $642.5 million as a result of measurement period adjustments. 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 and other future events that are highly subjective in nature and may require adjustments, which can be updated throughout the year following the acquisition. 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 from $663 million as of December 31, 2015, to $642.5 million as of the end of the measurement period in the third quarter of 2016. Prior to the impairment charge of $319.4 million taken during the fourth quarter of 2016, $362.6 million of the goodwill balance was associated with the Consumer Banking business segment. The remaining goodwill was allocated to the Commercial Finance and Real Estate Finance reporting units in Commercial Banking. Additionally, intangible assets of approximately $165 million were recorded relating mainly to the valuation of core deposit intangibles, trade name and customer relationships, as detailed in the table below. The table above does not include approximately $136 million of goodwill that was transferred to discontinued operations as a result of the movement of the Commercial Air and Business Air businesses to discontinued operations during 2016. In addition, during the second quarter of 2017, we announced that we reached a definitive agreement to sell NACCO, and therefore transferred the portfolio to held for sale. As a result, approximately $ 65 million of goodwill within Commercial Banking, including foreign exchange translation adjustments, was transferred to held for sale. 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, whether acquired or internally generated, are available to support the value of goodwill. In accordance with ASC 350, Intangibles — Goodwill and other, 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 reporting unit below its carrying value. CIT defines its reporting units as Commercial Finance, Real Estate Finance, Equipment Finance, Commercial Services, Rail and Consumer Banking. The Company performs its annual goodwill impairment test during the fourth quarter of each year or more often if events or circumstances have changed significantly from the annual test date, utilizing data as of September 30 to perform the test. Accordingly, during the fourth quarter of 2017 , the Company performed its annual goodwill impairment test. As discussed in Note 1 - Business and Summary of Significant Accounting Policies, the Company adopted ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment which requires entities to record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value (the "quantitative impairment test"). Companies can also choose to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, before applying the quantitative approach. For 2017 , we performed the quantitative impairment test for all Reporting Units ("RUs"), including Commercial Finance, Commercial Services, Equipment Finance, Rail, Real Estate Finance and Consumer Banking. Fair Value Determining the value of the RUs as part of the quantitative impairment test involves significant judgment. The Company used a combination of the Income Approach (i.e. discounted cash flow method) and the Market Approach (i.e. Guideline Public Company ("GPC") and, where applicable, Guideline Merged and Acquired Company ("GMAC") methods) to determine the fair value. In the application of the Income Approach, the Company determined the fair value of the RUs using a discounted cash flow ("DCF") analysis. The DCF model uses earnings projections and respective capitalization assumptions based on two-year financial plans presented to the Board of Directors. Beyond the initial two-year period, the projections converge toward a constant long-term growth rate of up to 3% based on the projected revenues of the RU, as well as expectations for the development of gross domestic product and inflation, which are captured in the terminal value. Estimating future earnings and capital requirements involves judgment and the consideration of past and current performance and overall macroeconomic and regulatory environments. The cash flows determined based on the process described above are discounted to their present value. The discount rate (cost of equity) applied is comprised of a risk-free interest rate, an equity risk premium, a size premium and a factor covering the systematic market risk (RU-specific beta) and, where applicable, a company specific risk premium. The values for the factors applied are determined primarily using external sources of information. The RU-specific betas are determined based on a group of peer companies. The discount rates applied to the RUs ranged from 10% to 12.75% . In our application of the market approach, for the GPC Method, the Company applied market based multiples derived from the stock prices of companies considered by management to be comparable to each of the RUs, to various financial metrics for each of the Reporting Units, as determined applicable to those reporting units, including tangible book or book value, earnings and projected earnings. In addition, the Company applied a 25% control premium based on our review of transactions observable in the market place that we determined were comparable. The control premium is management's estimate of how much a market participant would be willing to pay over the fair market value for control of the business. With respect to the application of the GMAC method, the Company used actual prices paid in merger and acquisition transactions for similar public and private companies in the banking industry. The multiples were then applied to relevant financial metrics of the RUs. A weighting is ascribed to each of the results of the Income and Market approaches to determine the concluded fair value of each RU. The weighting is judgmental and is based on the perceived level of appropriateness of the valuation methodology for each specific RU. Estimating the fair value of reporting units involves the use of estimates and significant judgments that are based on a number of factors including actual operating results. If current conditions change from those expected, it is reasonably possible that the judgments and estimates described above could change in future periods. Carrying Amount The carrying amount of the RUs is determined using a capital allocation methodology. The allocation uses the Company's total equity at the date of valuation, which is allocated to each of the Company's businesses, including the RUs, and to the other areas of the Company not included in the RUs. The allocation is informed by internal analysis and the current target regulatory capital of the Company, to determine the allocated capital. Based on the quantitative analysis, as described above, the Company concluded that the carrying amount of the Equipment Finance and Commercial Services RUs exceeded their estimated fair value and thus the Company recorded an impairment of the Equipment Finance and Commercial Services RUs of $247.0 million and $8.6 million , respectively, representing the full amount of goodwill assigned to the RUs. As described above, approximately $ 170 million of Equipment Finance's goodwill was recorded in August of 2014 as a result of the Direct Capital acquisition. Equipment Finance's remaining goodwill balance of approximately $ 80 million was attributed to the RU at the time of emergence from bankruptcy in 2009. The impairment charge in 2017 was primarily the result of forecasted margin compression on new business due to a limited ability to fully pass on interest rate increases to our higher yielding customers, a shift in volume to lower yielding, lower risk businesses that are not yet at scale, and lower than expected end-of-lease activity. Goodwill for Commercial Services of approximately $43 million was attributed at the time of emergence from bankruptcy in 2009. During 2016, the Company recorded goodwill impairment of $34.8 million for the RU as the fundamentals of the factoring business had come under increasing pressure from a challenging retail environment and tighter pricing on factoring commissions. The remaining goodwill of $ 8.6 million was impaired during the fourth quarter of 2017. 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, 2017 December 31, 2016 Gross Accumulated Net Gross Accumulated Net Core deposit intangibles $ 126.3 $ (43.6 ) $ 82.7 $ 126.3 $ (25.4 ) $ 100.9 Trade names 24.7 (7.7 ) 17.0 27.4 (6.1 ) 21.3 Customer relationships 23.9 (10.6 ) 13.3 23.9 (7.1 ) 16.8 Other 7.4 (7.4 ) — 9.7 (8.0 ) 1.7 Total intangible assets $ 182.3 $ (69.3 ) $ 113.0 $ 187.3 $ (46.6 ) $ 140.7 The following table presents the changes in intangible assets: Intangible Assets Rollforward (dollars in millions) Customer Core Deposit Trade Names Other Total December 31, 2015 $ 20.7 $ 118.8 $ 24.4 $ 2.2 $ 166.1 Additions — — — 1.8 1.8 Amortization (1) (3.9 ) (17.9 ) (3.1 ) (2.3 ) (27.2 ) December 31, 2016 16.8 100.9 21.3 1.7 140.7 Amortization (1) (3.5 ) (18.2 ) (2.8 ) (0.8 ) (25.3 ) Other (2) — — (1.5 ) (0.9 ) (2.4 ) December 31, 2017 $ 13.3 $ 82.7 $ 17.0 $ — $ 113.0 (1) Includes amortization recorded in operating expenses and operating lease rental income. (2) Includes adjustments as a result of the transfer of NACCO to held for sale. The intangible asset balances primarily reflect the intangibles recognized as a result of the OneWest Bank Transaction. The largest component is related to the valuation of core deposits. Core deposit intangibles ("CDIs") represent future benefits arising from non-contractual customer relationships (e.g., account relationships with the depositors) acquired from the purchase of demand deposit accounts, including interest and non-interest bearing checking accounts, money market and savings accounts. The Company's CDI has a finite life and is amortized on a straight line basis over the estimated useful life, with a remaining life of five years . Amortization expense for the intangible assets is primarily recorded in operating expenses. Intangible assets prior to the OneWest Transaction included the operating lease rental intangible assets comprised of amounts related to net favorable (above current market rates) operating leases. The intangible assets also include approximately $6.1 million , net, related to the valuation of existing customer relationships and trade names recorded in conjunction with the acquisition of Direct Capital in 2014. Accumulated amortization totaled $69.3 million at December 31, 2017 . Projected amortization for the years ended December 31, 2018 through December 31, 2022 , is approximately $23.8 million , $23.2 million , $22.8 million , $22.0 million , and $13.4 million , respectively. |
Severance And Facility Exiting
Severance And Facility Exiting Liabilities Severance And Facility Exiting Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Severance And Facility Exiting Liabilities [Abstract] | |
Severance And Facility Exiting Liabilities | SEVERANCE AND FACILITY EXITING LIABILITIES The following table summarizes liabilities (pre-tax) related to closing facilities and employee severance: Severance and Facility Exiting Liabilities (dollars in millions) Severance Facilities Number of Employees Liability Number of Facilities Liability Total Liabilities December 31, 2015 53 $ 36.9 8 $ 19.1 $ 56.0 Additions and adjustments 165 28.6 5 (0.6 ) 28.0 Utilization (183 ) (62.3 ) (2 ) (3.4 ) (65.7 ) December 31, 2016 35 3.2 11 15.1 18.3 Additions and adjustments 718 41.5 3 4.9 46.4 Utilization (215 ) (16.4 ) (4 ) (5.0 ) (21.4 ) December 31, 2017 538 $ 28.3 10 $ 15.0 $ 43.3 CIT continued to implement various organization efficiency and cost reduction initiatives. The severance additions primarily relate to employee termination benefits incurred in conjunction with these initiatives. The facility additions primarily relate to location closings and consolidations in connection with these initiatives. These additions, along with charges related to accelerated vesting of equity and other benefits, were recorded as part of the $53.0 million and $36.2 million provisions for the years ended December 31, 2017 and 2016 , respectively. |
Parent Company Financial Statem
Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Parent Company Financial Statements | 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, 2017 December 31, 2016 Assets: Cash and deposits $ 311.0 $ 1,172.8 Cash held at bank subsidiary 465.8 15.4 Securities purchased under agreements to resell 150.0 — Investment securities — 400.3 Receivables from nonbank subsidiaries 2,340.3 9,172.9 Receivables from bank subsidiaries 449.4 34.7 Investment in nonbank subsidiaries 2,943.3 3,597.4 Investment in bank subsidiaries 5,121.5 5,187.9 Goodwill 46.9 261.4 Other assets 723.6 2,217.7 Total Assets $ 12,551.8 $ 22,060.5 Liabilities and Equity: Borrowings $ 3,737.5 $ 10,599.0 Liabilities to nonbank subsidiaries 1,148.0 907.9 Liabilities to bank subsidiaries — 4.6 Other liabilities 346.3 546.3 Total Liabilities 5,231.8 12,057.8 Total Stockholders' Equity 7,320.0 10,002.7 Total Liabilities and Equity $ 12,551.8 $ 22,060.5 Condensed Parent Company Only Statements of Income and Comprehensive Income (dollars in millions) Years Ended Years Ended December 31, 2017 2016 2015 Income Interest income from nonbank subsidiaries $ 160.5 $ 488.3 $ 435.1 Interest and dividends on interest bearing deposits and investments 7.4 2.7 3.2 Dividends from nonbank subsidiaries — 399.9 630.3 Dividends from bank subsidiaries 359.0 223.0 459.2 Other non-interest income from subsidiaries 194.0 146.3 (138.8 ) Other non-interest income (127.9 ) 21.0 128.8 Total income 593.0 1,281.2 1,517.8 Expenses Interest expense 324.7 548.2 570.7 Interest expense on liabilities to subsidiaries 50.3 51.1 43.9 Other non-interest expenses 499.4 565.0 267.2 Total expenses 874.4 1,164.3 881.8 (Loss) income before income taxes and equity in undistributed net income of subsidiaries (281.4 ) 116.9 636.0 Provision (benefit) for income taxes 163.4 (308.5 ) (827.2 ) (Loss) income before equity in undistributed net income of subsidiaries (444.8 ) 425.4 1,463.2 Equity in undistributed net income of bank subsidiaries (55.6 ) (349.8 ) (265.1 ) Equity in undistributed net income of nonbank subsidiaries 968.6 (923.6 ) (164.0 ) Net income (loss) 468.2 (848.0 ) 1,034.1 Other Comprehensive income (loss), net of tax 53.6 2.0 (8.2 ) Comprehensive income (loss) $ 521.8 $ (846.0 ) $ 1,025.9 Condensed Parent Company Only Statements of Cash Flows (dollars in millions) Years Ended Years Ended December 31, 2017 2016 2015 Cash Flows From Operating Activities: Net income (loss) $ 468.2 $ (848.0 ) $ 1,034.1 Equity in undistributed earnings of subsidiaries (1,272.0 ) 650.4 429.1 Other operating activities, net 621.5 69.0 (566.4 ) Net cash flows (used in) provided by operations (182.3 ) (128.6 ) 896.8 Cash Flows From Investing Activities: Decrease in investments in subsidiaries 2,096.7 1,023.1 620.1 Acquisitions — — (1,559.5 ) Decrease (increase) in Investment securities and securities purchased under agreements to resell 250.3 (100.2 ) 1,454.1 Net cash flows provided by investing activities 2,347.0 922.9 514.7 Cash Flows From Financing Activities: Repayments of term debt (7,087.7 ) (359.5 ) (1,256.7 ) Net proceeds from issuance of preferred stock 318.0 — — Repurchase of common stock (3,431.9 ) — (531.8 ) Dividends paid (113.7 ) (123.0 ) (114.9 ) Net change in advances from (to) subsidiaries 7,759.9 (131.5 ) 91.0 Other financing activities, net (20.7 ) (21.9 ) (22.2 ) Net cash flows used in financing activities (2,576.1 ) (635.9 ) (1,834.6 ) Net (decrease) increase in cash and cash equivalents (411.4 ) 158.4 (423.1 ) Cash and cash equivalents, beginning of period 1,188.2 1,029.8 1,452.9 Cash and cash equivalents, end of period $ 776.8 $ 1,188.2 $ 1,029.8 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) The following presents quarterly data: Selected Quarterly Financial Data (dollars in millions) Unaudited Fourth Quarter Third Quarter Second Quarter First Quarter For the year ended December 31, 2017 Interest income $ 447.7 $ 454.0 $ 478.2 $ 455.7 Interest expense 168.7 176.7 209.2 163.1 Provision for credit losses 30.4 30.1 4.4 49.7 Rental income on operating leases 252.6 252.3 251.2 251.3 Other non-interest income 137.2 63.3 84.6 79.1 Depreciation on operating lease equipment 74.3 71.1 77.4 73.5 Goodwill Impairment 255.6 — — — Maintenance and other operating lease expenses 57.9 57.9 53.3 53.8 Operating expenses 304.0 277.3 295.6 311.6 Loss on debt extinguishment and deposit redemption 1.7 53.5 164.8 — Provision (benefit) for income taxes 27.7 (119.8 ) (31.9 ) 56.2 (Loss) income from discontinued operations, net of taxes (5.2 ) (3.2 ) 115.5 101.7 Net (loss) income $ (88.0 ) $ 219.6 $ 156.7 $ 179.9 Net Income (loss) applicable to common shareholders $ (97.8 ) $ 219.6 $ 156.7 $ 179.9 Income (loss) from continuing operations applicable to common shareholders $ (92.6 ) $ 222.8 $ 41.2 $ 78.2 Net (loss) income per diluted share $ (0.74 ) $ 1.61 $ 0.85 $ 0.88 For the year ended December 31, 2016 Interest income $ 474.1 $ 475.7 $ 478.7 $ 482.9 Interest expense 178.3 188.2 191.6 195.0 Provision for credit losses 36.7 45.1 23.3 89.5 Rental income on operating leases 252.2 254.3 261.0 264.1 Other non-interest income (117.6 ) 83.6 99.8 84.8 Depreciation on operating lease equipment 69.8 66.9 63.1 61.3 Maintenance and other operating lease expenses 57.5 56.6 50.6 48.9 Goodwill Impairment 354.2 — — — Operating expenses 341.3 302.9 309.3 330.1 Loss on debt extinguishment and deposit redemption 3.3 5.2 2.4 1.6 Provision (benefit) for income taxes (6.6 ) 54.5 111.2 44.4 Income (loss) from discontinued operation, net of taxes (716.7 ) 37.3 (71.0 ) 85.0 Net income (loss) $ (1,142.5 ) $ 131.5 $ 17.0 $ 146.0 Net Income (loss) applicable to common shareholders $ (1,142.5 ) $ 131.5 $ 17.0 $ 146.0 Income (loss) from continuing operations applicable to common shareholders $ (425.8 ) $ 94.2 $ 88.0 $ 61.0 Net income (loss) per diluted share $ (5.65 ) $ 0.65 $ 0.08 $ 0.72 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Revolving Credit Facility Amendment On February 16, 2018, the Revolving Credit Facility was amended. Changes effected include the extension of the final maturity date of the commitments of all but one of the lenders to February 29, 2020 and reduction of the lenders’ total commitments from $ 750 million to $ 500 million . The non-extending lender’s commitments of approximately $ 42 million will terminate on January 25, 2019. The $ 500 million total commitment amount consisted of an approximately $ 375 million revolving loan tranche and an approximately $ 125 million revolving loan tranche that can also be utilized for issuance of letters of credit. As of February 16, 2018, there were no amounts drawn under the Credit Agreement other than approximately $ 55 million that was utilized for letters of credit. Amended Capital Plan On February 1, 2018, the Company received a “non-objection” from the Federal Reserve Bank of New York to an amendment (the “Amended Capital Plan”) to the 2017 Capital Plan dated April 5, 2017 (“Original Plan”) filed by the Company under the 2017 Comprehensive Capital Analysis and Review (“CCAR”). The Amended Capital Plan includes (i) the issuance of up to $ 400 million in Tier 2 qualifying subordinated debt; and (ii) an increase in common equity distribution of up to $ 800 million for the remainder of the four-quarter period that began July 1, 2017 and ends on June 30, 2018, provided that if the Company does not issue qualifying subordinated debt, or issues less than $ 400 million of qualifying subordinated debt, the Company will reduce the total amount of common equity distributions by a commensurate amount. These actions would be in addition to those which received a non-objection from the Federal Reserve on June 28, 2017 for the same period, of which approximately $100 million of repurchases remained at December 31, 2017. The Company will determine the timing and amount of any share repurchases, special dividends, or combination of the two that may be authorized based on market conditions and other considerations. Any share repurchases may be effected through tender offer, in the open market, through derivative, accelerated repurchase and other negotiated transactions, and through plans designed to comply with Rule 10b5-1(c) under the Securities Exchange Act of 1934. |
Business And Summary Of Signi38
Business And Summary Of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Financial Information | Basis of Financial Information The accounting and financial reporting policies of CIT conform to generally accepted accounting principles ("GAAP") in the United States and the preparation of the consolidated financial statements is in conformity with GAAP which requires management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates and assumptions. Some of the more significant estimates include: allowance for loan losses, loan impairment, fair value determination, lease residual values, liabilities for uncertain tax positions, realizability of deferred tax assets, purchase accounting adjustments, indemnification assets, goodwill, intangible assets, and contingent liabilities. Additionally where applicable, the policies conform to accounting and reporting guidelines prescribed by bank regulatory authorities. |
Principles Of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include financial information related to CIT and its majority-owned subsidiaries and those variable interest entities ("VIEs") where the Company is the primary beneficiary ("PB"). In preparing the consolidated financial statements, all significant inter-company accounts and transactions have been eliminated. Assets held in an agency or fiduciary capacity are not included in the consolidated financial statements. Effective as of August 3, 2015 , CIT Group Inc. ("CIT") acquired IMB HoldCo LLC ("IMB"), the parent company of OneWest Bank, National Association, a national bank ("OneWest Bank"). CIT Bank, then a Utah-state chartered bank and a wholly-owned subsidiary of CIT, merged with and into OneWest Bank (the "OneWest Transaction"), with OneWest Bank surviving as a wholly-owned subsidiary of CIT with the name CIT Bank, National Association ("CIT Bank, N.A." or "CIT Bank"). As such, the results for the year ended December 31, 2015 contain activity of OneWest Bank for approximately five months . |
Discontinued Operations | Discontinued Operations Discontinued Operations as of December 31, 2017 included certain assets and liabilities of the business air business, along with the Financial Freedom business that was acquired as part of the OneWest Transaction. Assets and liabilities as of December 31, 2016 also included the commercial air business. We sold the Commercial Air business, except for certain Commercial Air loans and investments in CIT Bank, on April 4, 2017. Income (loss) from discontinued operations reflects the activities of the aerospace (commercial air and business air) businesses for the years ended December 31, 2017 , 2016 , and 2015 . Income (loss) from discontinued operations also included the activities of Financial Freedom for the periods since its acquisition date, August 3, 2015 . On October 6, 2017, CIT announced that CIT Bank, N.A. has agreed to sell Financial Freedom, its reverse mortgage servicing business and the reverse mortgage portfolio serviced by Financial Freedom (the “Financial Freedom Transaction”). The Financial Freedom Transaction is expected to close in the second quarter of 2018 and is subject to certain regulatory and investor approvals and other customary closing conditions. See Note 2 - Discontinued Operations . |
Revisions | Revisions The Company has revised the Consolidated Statements of Cash Flows for the year ended December 31, 2016 in connection with immaterial errors impacting the classification of certain balances between line items and categories in the Consolidated Statements of Cash Flows. The misclassifications resulted in an overstatement of net cash flows provided by operations of $ 3.6 million (which included an overstatement of the "decrease in other assets" line item of $ 935.0 million and an overstatement of the "decrease in accrued liabilities and payables" line item of $ 936.4 million for prior year errors identified in 2017), and an understatement of net cash flows used in investing activities of $ 3.6 million . |
Loans and Leases | Loans and Leases CIT extends credit to commercial customers through a variety of financing arrangements including term loans, revolving credit facilities, capital (direct finance) leases and operating leases. CIT also extends credit through consumer loans, including residential mortgages and has a portfolio of reverse mortgages, which is currently recorded in Assets Held for Sale ("AHFS"). The amounts outstanding on term loans, consumer loans, revolving credit facilities and capital leases, along with past due lease payments on operating lease equipment, are referred to as loans. These loans, when combined with 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 resell 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. Direct financing 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 cost or fair value. At the time of transfer, a write-down of the loan is recorded as a charge-off when the carrying amount exceeds fair value and the difference relates to credit quality, otherwise the write-down is recorded as a reduction to other non-interest income, and any allowance for loan loss is reversed. Once classified as AHFS, the amount by which the carrying value exceeds fair value is recorded as a valuation allowance and is reflected as a reduction to other non-interest income. If it is determined that a loan should be transferred from AHFS to HFI, the loan is transferred at the lower of cost or fair value on the transfer date, which coincides with the date of change in management’s intent. The difference between the carrying value of the loan and the fair value, if lower, is reflected as a loan discount at the transfer date, which reduces its carrying value. Subsequent to the transfer, the discount is accreted into earnings as an increase to interest income over the life of the loan using the effective interest method. 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. 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 is marked to the lower of cost or fair value with the adjustment recorded in other non-interest income. In the operating lease portfolio in discontinued operations at December 31, 2016, maintenance costs incurred that exceed maintenance funds collected for commercial aircraft are expensed if they do not provide a future economic benefit and do not extend the useful life of the aircraft. Such costs may include costs of routine aircraft operation and costs of maintenance and spare parts incurred in connection with re-leasing an aircraft and during the transition between leases. For such maintenance costs that are not capitalized, a charge is recorded in expense at the time the costs are incurred. Income recognition related to maintenance funds collected and not used during the life of the lease is deferred to the extent management estimates costs will be incurred by subsequent lessees performing scheduled maintenance. Upon the disposition of an aircraft, any excess maintenance funds that exist are recognized in discontinued operations - other non-interest income. Loans acquired are initially recorded at their fair value on the acquisition date. For loans that were not considered credit impaired at the date of acquisition and for which cash flows were evaluated based on contractual terms, a premium or discount was 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 will be recognized in Interest Income. If the loan is sold, the remaining discount will be considered in the resulting gain or loss on sale. If the loan is subsequently classified as non-accrual, or transferred to AHFS, accretion / amortization of the discount (premium) will cease. For loans that were purchased with evidence of credit quality deterioration since origination, the discount recorded includes accretable and non-accretable components. For purposes of income recognition, and consistent with valuation models across loan portfolios, the Company has elected to not take a position on the movement of future interest rates in the model. If interest rates rise, the loans will generate higher income. If rates fall, the loans will generate lower income. Purchased Credit-Impaired Loans Purchased credit-impaired loans (“PCI loans”) are accounted for in accordance with ASC 310-30 Loans and Debt Securities Acquired with Deteriorated Credit Quality (“ASC 310-30”) . PCI loans were determined as of the date of purchase to have evidence of credit quality deterioration, which make it probable that the Company will be unable to collect all contractually required payments (principal and interest). Evidence of credit quality deterioration as of the purchase date may include past due status, recent borrower credit scores, credit rating (probability of obligor default) and recent loan-to-value ratios. Commercial PCI loans are accounted for as individual loans. Conversely, consumer PCI loans with similar common risk characteristics are pooled together for accounting purposes (i.e., into one unit of account). Common risk characteristics consist of similar credit risk (e.g., delinquency status, loan-to-value, or credit risk rating) and at least one other predominant risk characteristic (e.g., loan type, collateral type, interest rate index, date of origination or term). For pooled loans, each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows for the pool. At acquisition, PCI loans are initially recorded at estimated fair value, which is determined by discounting each commercial loan’s or consumer pool’s principal and interest cash flows expected to be collected using a discount rate for similar instruments with adjustments that management believes a market participant would consider. The Company estimates the cash flows expected to be collected at acquisition using internal credit risk and prepayment risk models that incorporate management’s best estimate of current key assumptions, such as default rates, loss severity and prepayment speeds of the loan. For PCI loans, an accretable yield is measured as the excess of the cash flows expected to be collected, estimated at the acquisition date, over the recorded investment (estimated fair value at acquisition) and is recognized in interest income over the remaining life of the loan, or pool of loans, on an effective yield basis. The difference between the cash flows contractually required to be paid, measured as of the acquisition date, over the cash flows expected to be collected is referred to as the non-accretable difference. Subsequent to acquisition, the estimates of the cash flows expected to be collected are evaluated on a quarterly basis for both commercial PCI loans (evaluated individually) and consumer PCI loans (evaluated on a pool basis). During each subsequent reporting period, the cash flows expected to be collected shall be reviewed but will be revised only if it is deemed probable that a significant change has occurred. Probable and significant decreases in expected cash flows as a result of further credit deterioration result in a charge to the provision for credit losses and a corresponding increase to the allowance for loan losses. Probable increases in cash flows expected to be collected due to improved credit quality result in recovery of any previously recorded allowance for loan losses, to the extent applicable, and an increase in the accretable yield applied prospectively for any remaining increase. The accretable yield is affected by revisions to previous expectations that result in an increase in expected cash flows, changes in interest rate indices for variable rate PCI loans, changes in prepayment assumptions and changes in expected principal and interest payments and collateral values. The Company assumes a flat forward interest curve when analyzing future cash flows for the mortgage loans. Changes in expected cash flows caused by changes in market interest rates are recognized as adjustments to the accretable yield on a prospective basis. Resolutions of loans may include sales to third parties, receipt of payments in settlement with the borrower, or foreclosure of the collateral. Upon resolution, the Company’s policy is to remove an individual consumer PCI loan from the pool at its carrying amount. Any difference between the loans carrying amount and the fair value of the collateral or other assets received does not affect the percentage yield calculation used to recognize accretable yield on the pool. This removal method assumes that the amount received from these resolutions approximates the pool performance expectations of cash flows. The accretable yield percentage is unaffected by the resolution. Modifications or refinancing of loans accounted for within a pool do not result in the removal of those loans from the pool; instead, the revised terms are reflected in the expected cash flows within the pool of loans. Reverse Mortgages Reverse mortgage loans are contracts in which a homeowner borrows against the equity in their home and receives cash in one lump sum payment, a line of credit, fixed monthly payments for either a specific term or for as long as the homeowner lives in the home or a combination of these options. Reverse mortgages feature no recourse to the borrower, no required repayment during the borrower’s occupancy of the home (as long as the borrower complies with the terms of the mortgage), and, in the event of foreclosure, a repayment amount that cannot exceed the lesser of either the unpaid principal balance of the loan or the proceeds recovered upon sale of the home. The mortgage balance consists of cash advanced, interest compounded over the life of the loan, capitalized mortgage insurance premiums, and other servicing advances capitalized into the loan. |
Revenue Recognition | Revenue Recognition 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. See Purchase Accounting Adjustments in Note 2 - Discontinued Operations. Uninsured reverse mortgages in continuing operations that were determined to be non-PCI are accounted for in accordance with the instructions provided by the staff of the Securities and Exchange Commission (“SEC”) entitled “Accounting for Pools of Uninsured Residential Reverse Mortgage Contracts.” For these uninsured reverse mortgages, the Company has determined that as a result of the similarities between both the reverse mortgage borrowers’ demographics and the terms of the reverse mortgage loan contracts, these reverse mortgages are accounted for at the pool level. To determine the effective yield of the pool, we project the pool’s cash inflows and outflows including actuarial projections of the life expectancy of the individual contract holder and changes in the collateral value of the residence are projected. At each reporting date, a new economic forecast is made of the cash inflows and outflows for the population of reverse mortgages. Projections of cash flows assume the use of flat forward rate interest curves. The effective yield of the pool is recomputed and income is adjusted to retrospectively reflect the revised rate of return. Because of this accounting, the recorded value of reverse mortgage loans and interest income can result in significant volatility associated with the estimates. As a result, income recognition can vary significantly from period to period. The pool method of accounting results in the establishment of an Actuarial Valuation Allowance (“AVA”) related to the deferral of net gains from loans exiting the pool. The AVA is a component of the net book value of the portfolio and has the ability to absorb potential collectability short-falls. Insured reverse mortgages included in continuing operations were determined to be PCI, even though these loans are Home Equity Conversion Mortgages (“HECMs”) insured by the Federal Housing Administration, based on management’s consideration of the loan’s loan-to-value (“LTV”) and its relationship to the loan’s Maximum Claim Amount. As such, based on the guidance in ASC 310-30, revenue recognition and income measurement for these loans is based on expected rather than contractual cash flows; and, the fair value adjustment on these loans included both accretable and non-accretable components. 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 recorded related to acquisitions completed by the Company and 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 and lease receivables 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 for a minimum of six months . The recognition of interest income on reverse mortgages is suspended upon the latter of the foreclosure sale date or date on which marketable title has been acquired (i.e. property becomes OREO). The Company periodically modifies the terms of loan in response to borrowers’ financial difficulties. These modifications may include interest rate changes, principal forgiveness or payment deferments. Loans that are modified, where a concession has been made to the borrower, are accounted for as Troubled Debt Restructurings (“TDRs”). TDRs are generally placed on non-accrual upon their restructuring and remain on non-accrual until, in the opinion of management, collection of remaining principal and interest is reasonably assured, and upon collection of six consecutive scheduled payments. PCI loans in pools that the Company may modify as TDRs are not within the scope of the accounting guidance for TDRs. |
Allowance For Loan Losses On Loans | Allowance for Loan Losses on Loans The allowance for loan losses ("ALLL") is intended to provide for credit losses inherent in the HFI loan portfolio and is periodically reviewed for adequacy. The allowance for loan losses is determined based on three key components: (1) specific allowances for loans that are impaired, based upon the value of underlying collateral or projected cash flows, or observable market price, (2) non-specific allowances for estimated losses inherent in the non-impaired portfolio based upon the expected loss over the loss emergence period, and (3) allowances for estimated losses inherent in the portfolio based upon economic risks, industry and geographic concentrations, and other factors, not in the non-specific allowance. Changes to the Allowance for Loan Losses are recorded in the Provision for Credit Losses. Determining an appropriate allowance for loan losses requires significant judgment that may change based on management’s ongoing process in analyzing the credit quality of the Company’s HFI loan portfolio. Loans are divided into the following portfolio segments, which correspond to the Company’s business segments: Commercial Banking, Consumer Banking and Non-Strategic Portfolios (“NSP”). Within each portfolio segment, credit risk is assessed and monitored in the following classes of loans; within Commercial Banking, Commercial Finance, Real Estate Finance, Business Capital, and Rail, are collectively referred to as Commercial Loans. Within Consumer Banking, classes include Legacy Consumer Mortgages (“LCM”) and Other Consumer Lending, collectively referred to as Consumer Loans. The allowance is estimated based upon the loans in the respective class. For each portfolio, impairment is generally measured individually for larger non-homogeneous loans ( $500 thousand or greater) and collectively for groups of smaller loans with similar characteristics or for designated pools of PCI loans based on decreases in cash flows expected to be collected subsequent to acquisition. Loans acquired were initially recorded at estimated fair value at the time of acquisition. Expected credit losses were included in the determination of estimated fair value, no allowance was established on the acquisition date. |
Allowance Methodology | Allowance Methodology Commercial Loans With respect to commercial portfolios, the Company monitors credit quality indicators, including expected and historical losses and levels of, and trends in, past due loans, non-performing assets and impaired loans, collateral values and economic conditions. Commercial loans are graded according to the Company’s internal rating system with respect to probability of default and loss given default (severity) based on various risk factors. The non-specific allowance is determined based on the estimated probability of default, which reflects the borrower’s financial strength, and the severity of loss in the event of default, considering the quality of the underlying collateral. The probability of default and severity are derived through historical observations of default and subsequent losses within each risk grading. A specific allowance is also established for impaired commercial loans and commercial loans modified in a TDR. Refer to the Impairment of Loans section of this Note for details. Consumer Loans For residential mortgages, the Company develops a loss reserve factor by deriving the projected lifetime losses then adjusting for losses expected to be specifically identified within the loss emergence period. The key drivers of the projected lifetime losses include the type of loan, type of product, delinquency status of the underlying loans, loan-to-value and/or debt-to-income ratios, geographic location of the collateral, and any guarantees. For uninsured reverse mortgage loans in continuing operations, an allowance is established if the Company is likely to experience losses on the disposition of the property that are not reflected in the recorded investment, including the AVA, as the source of repayment of the loan is tied to the home’s collateral value alone. A reverse mortgage matures when one of the following events occur: 1) the property is sold or transferred, 2) the last remaining borrower dies, 3) the property ceases to be the borrower’s principal residence, 4) the borrower fails to occupy the residence for more than 12 consecutive months or 5) the borrower defaults under the terms of the mortgage or note. A maturity event other than death is also referred to as a mobility event. The level of any required allowance for loan losses on reverse mortgage loans is based on the Company’s estimate of the fair value of the property at the maturity event based on current conditions and trends. The allowance for loan losses assessment on uninsured reverse mortgage loans is performed on a pool basis and is based on the Company’s estimate of the future fair value of the properties at the maturity event based on current conditions and trends. Other Allowance Factors If commercial or consumer loan losses are reimbursable by the Federal Deposit Insurance Corporation (“FDIC”) under the loss sharing agreement, the recorded provision is partially offset by any benefit expected to be derived from the related indemnification asset subject to management’s assessment of the collectability of the indemnification asset and any contractual limitations on the indemnified amount. See Indemnification Assets later in this section. With respect to assets transferred from HFI to AHFS, a charge-off is recognized to the extent carrying value exceeds the fair value and the difference relates to credit quality. An approach similar to the allowance for loan losses is utilized to calculate a reserve for losses related to unfunded loan commitments and deferred purchase commitments. A reserve for unfunded loan commitments is maintained to absorb estimated probable losses related to these facilities. The adequacy of the reserve is determined based on periodic evaluations of the unfunded credit facilities, including an assessment of the probability of commitment usage, credit risk factors for loans outstanding to these same customers, and the terms and expiration dates of the unfunded credit facilities. The reserve for unfunded loan commitments and deferred purchase commitments are recorded as a liability on the Consolidated Balance Sheet. Net adjustments to the reserve for unfunded loan commitments and deferred purchase commitments are included in the provision for credit losses. The allowance policies described above relate to specific and non-specific allowances, and the impaired loans and charge-off policies that follow are applied across the portfolio segments and loan classes therein. Given the nature of the Company’s business, the specific allowance relates to the Commercial Banking segments. The non-specific allowance, which considers the Company’s internal system of probability of default and loss severity ratings for commercial loans, among other factors, is applicable to both commercial and consumer loans. Additionally, divisions in Commercial Banking and Consumer Banking segments also utilize methodologies under ASC 310-30 for PCI loans, as discussed below. PCI Loans See Purchased Credit-Impaired Loans in Loans and Leases for description of allowance factors. |
Past Due And Non-Accrual Loans | Past Due and Non-Accrual Loans A loan is considered past due for financial reporting purposes if default of contractual principal or interest exists for a period of 30 days or more. Past due loans consist of loans that are still accruing interest as well as loans on non-accrual status. Loans are placed on non-accrual status when the financial condition of the borrower has deteriorated and payment in full of principal or interest is not expected or the scheduled payment of principal and interest has been delinquent for 90 days or more, unless the loan is both well secured and in the process of collection. PCI loans are written down at acquisition to their fair value using an estimate of cash flows deemed to be probable of collection. Accordingly, such loans are no longer classified as past due or non-accrual even though they may be contractually past due because we expect to fully collect the new carrying values of these loans. Due to the nature of reverse mortgage loans (i.e., these loans do not contain a contractual due date or regularly scheduled payments due from the borrower), they are considered current for purposes of past due reporting and are excluded from reported non-accrual loan balances. |
Impairment Of Loans | Impairment of Loans Impairment occurs when, based on current information and events, it is probable that CIT will be unable to collect all amounts due according to contractual terms of the agreement. Impairment is measured as the shortfall between estimated value and recorded investment in the loan, with the estimated value determined using fair value of collateral and other cash flows if the loan is collateralized, the present value of expected future cash flows discounted at the contract’s effective interest rate, or observable market prices. Impaired loans of $500 thousand or greater that are placed on non-accrual status, largely in Commercial Finance, Real Estate Finance, and Business Capital, are subject to periodic individual review by the Company’s problem loan management (“PLM”) function. The Company excludes certain loan portfolios from its impaired loans disclosures as charge-offs are typically determined and recorded for such loans beginning at 90 - 180 days of contractual delinquency. These include small-ticket loans, largely in Business Capital and NSP, and consumer loans, including single family residential mortgages, in Consumer Banking that have not been modified in a TDR, as well as short-term factoring receivables in Business Capital. |
Charge-Off Of Loans | Charge-off of Loans Charge-offs on loans are recorded after considering such factors as the borrower’s financial condition, the value of underlying collateral and guarantees (including recourse to dealers and manufacturers), and the status of collection activities. Such charge-offs are deducted from the carrying value of the related loans. This policy is largely applicable in the loan classes within Commercial Banking. In general, charge-offs of large ticket commercial loans ( $500 thousand or greater) are determined based on the facts and circumstances related to the specific loan and the underlying borrower and the use of judgment by the Company. Charge-offs of small ticket commercial loans are recorded beginning at 90 - 180 days of contractual delinquency. Charge-offs of Consumer loans are recorded beginning at 120 days of delinquency. The value of the underlying collateral will be considered when determining the charge-off amount if repossession is assured and in process. Charge-offs on loans originated are reflected in the provision for credit losses. Charge-offs are recognized on consumer loans for which losses are reimbursable under loss sharing agreements with the FDIC, with a provision benefit recorded to the extent applicable via an increase to the related indemnification asset. In the event of a partial charge-off on loans with a PAA, the charge-off is first allocated to the respective loan’s discount. Then, to the extent the charge-off amount exceeds such discount, a provision for credit losses is recorded. Collections on accounts charged off post- acquisition are recorded as recoveries in the provision for credit losses. Collections on accounts that exceed the balance recorded at the date of acquisition are recorded as recoveries in other non-interest income. Collections on accounts previously charged off prior to transfer to AHFS are recorded as recoveries in other non-interest income. |
Impairment Of Long-Lived Assets | Impairment of Long-Lived Assets A review for impairment of long-lived assets, such as operating lease equipment, is performed at least annually or when events or changes in circumstances indicate that the carrying amount of long-lived assets may not be recoverable. Impairment of assets is determined by comparing the carrying amount to future undiscounted net cash flows expected to be generated. If an asset is impaired, the impairment is the amount by which the carrying amount exceeds the fair value of the asset. Fair value is based upon discounted cash flow analysis and available market data. Current lease rentals, as well as relevant and available market information (including third party sales for similar equipment and published appraisal data), are considered both in determining undiscounted future cash flows when testing for the existence of impairment and in determining estimated fair value in measuring impairment. Depreciation expense is adjusted when the projected fair value at the end of the lease term is below the projected book value at the end of the lease term. Assets to be disposed of are included in AHFS in the Consolidated Balance Sheet and are reported at the lower of the cost or fair market value less disposal costs (“LOCOM”). |
Investments | Investments Investments in debt securities and equity securities that have readily determinable fair values not classified as trading securities, investment securities carried at fair value with changes recorded in net income, or as held-to-maturity (“HTM”) securities are classified as available-for-sale (“AFS”) securities. Debt and equity securities classified as AFS are carried at fair value with changes in fair value reported in accumulated other comprehensive income (“AOCI”), a component of stockholders’ equity, net of applicable income taxes. Credit-related declines in fair value that are determined to be OTTI are immediately recorded in earnings. Realized gains and losses on sales are included in other non-interest income on a specific identification basis, and interest and dividend income on AFS securities is included in other interest and dividends. Debt securities classified as HTM represent securities that the Company has both the ability and the intent to hold until maturity, and are carried at amortized cost. Interest on such securities is included in other interest and dividends. Debt and marketable equity security purchases and sales are recorded as of the trade date. Mortgage-backed securities are classified as either AFS or securities carried at fair value with changes recorded in net income. Debt securities classified as AFS that had evidence of credit deterioration as of the acquisition date and for which it was probable that the Company would not collect all contractually required principal and interest payments were classified as PCI debt securities. Subsequently, the accretable yield (based on the cash flows expected to be collected in excess of the recorded investment or fair value) is accreted to interest income using an effective interest method pursuant to ASC 310-30 for PCI securities and securities carried at fair value with changes recorded in net income. The Company uses a flat interest rate forward curve for purposes of applying the effective interest method to PCI securities. On a quarterly basis, the cash flows expected to be collected are reviewed and updated. The expected cash flow estimates take into account relevant market and economic data as of the end of the reporting period including, for example, for securities issued in a securitization, underlying loan-level data, and structural features of the securitization, such as subordination, excess spread, overcollateralization or other forms of credit enhancement. OTTI with credit-related losses are recognized as permanent write-downs, while other changes in expected cash flows (e.g., significant increases and contractual interest rate changes) are recognized through a revised accretable yield in subsequent periods. The non-accretable discount is recorded as a reduction to the investments and will be reclassified to accretable discount should expected cash flows improve or used to absorb incurred losses as they occur. Equity securities without readily determinable fair values are generally carried at cost or the equity method of accounting and periodically assessed for OTTI, with the net asset values reduced when impairment is deemed to be other-than-temporary. Equity method investments are recorded at cost, adjusted to reflect the Company’s portion of income, loss or dividend of the investee. All other non-marketable equity investments are carried at cost and periodically assessed for OTTI. Evaluating Investments for OTTI An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Unrealized losses that are determined to be temporary in nature are recorded, net of tax, in AOCI for AFS securities, while such losses related to HTM securities are not recorded, as these investments are carried at their amortized cost. Unrealized losses on securities carried at fair value would be recorded through earnings as part of the total change in fair value. The Company conducts and documents periodic reviews of all securities with unrealized losses to evaluate whether the impairment is other than temporary. The Company accounts for investment impairments in accordance with ASC 320-10-35-34, Investments - Debt and Equity Securities: Recognition of an Other-Than-Temporary Impairment . Under the guidance for debt securities, OTTI is recognized in earnings for debt securities that the Company has an intent to sell or that the Company believes it is more-likely-than-not that it will be required to sell prior to the recovery of the amortized cost basis. For debt securities classified as HTM that are considered to have OTTI that the Company does not intend to sell and it is more likely than not that the Company will not be required to sell before recovery, the OTTI is separated into an amount representing the credit loss, which is recognized in other non-interest income in the Consolidated Statements of Income, and the amount related to all other factors, which is recognized in OCI. OTTI on debt securities and equity securities classified as AFS and non-marketable equity investments are recognized in other non-interest income in the Consolidated Statements of Income in the period determined. Impairment is evaluated and to the extent it is credit related amounts are reclassified out of AOCI to other non-interest income. If it is not credit related then, the amounts remain in AOCI. Amortized cost is defined as the original purchase cost, plus or minus any accretion or amortization of a purchase discount or premium. Regardless of the classification of the securities as AFS or HTM, the Company assesses each investment with an unrealized loss for impairment. Factors considered in determining whether a loss is temporary include: · the length of time that fair value has been below cost; · the severity of the impairment or the extent to which fair value has been below cost; · the cause of the impairment and the financial condition and the near-term prospects of the issuer; · activity in the market of the issuer that may indicate adverse credit conditions; and · the Company’s ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery. The Company’s review for impairment generally includes identification and evaluation of investments that have indications of possible impairment, in addition to: · analysis of individual investments that have fair values less than amortized cost, including consideration of the length of time the investment has been in an unrealized loss position and the expected recovery period; · discussion of evidential matter, including an evaluation of factors or triggers that could cause individual investments to qualify as having OTTI and those that would not support OTTI; and · documentation of the results of these analyses, as required under business policies. Investments in Restricted Stock The Company is a member of, and owns capital stock in, the Federal Home Loan Bank (“FHLB”) of San Francisco and the FRB. As a condition of membership, the Company is required to own capital stock in the FHLB based upon outstanding FHLB advances and FRB stock based on a specified ratio relative to the Company’s capital. FHLB and FRB stock may only be sold back to the member institutions at its carrying value and cannot be sold to other parties. For FHLB stock, cash dividends are recorded within other interest and dividends when declared by the FHLB. For FRB stock, the Company is legally entitled (without declaration) to a specified dividend paid semi-annually. Dividends are recorded in other interest and dividends in the Consolidated Statements of Income. Due to the restricted ownership requirements, the Company accounts for its investments in FHLB and FRB stock as a nonmarketable equity stock accounted for under the cost method. Purchases and redemptions of restricted stock are reflected in the investing section of the Consolidated Statements of Cash Flows. Impairment reviews of the investment are completed at least annually, or when events or circumstances indicate that their carrying amounts may not be recoverable. The Company’s impairment evaluation considers the long-term nature of the investment, the liquidity position of the member institutions, its recent dividend declarations and the intent and ability to hold this investment 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 shared loss agreements 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 loss sharing agreements 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 loss sharing agreements pursuant to ASC 805. 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 loss share agreement and remaining life of the indemnified item. A yield is determined based on the expected cash flows to be collected from the FDIC over the recorded investment. The expected cash flows on the indemnification asset are reviewed and updated on a quarterly basis. Changes in expected cash flows caused by changes in market interest rates or by prepayments of principal are recognized as adjustments to the effective yield on a prospective basis in interest income. For PCI loans with an associated indemnification asset, if the increase in expected cash flows is recognized through a higher yield, a lower and potentially negative yield (i.e. due to a decline in expected cash flows in excess of the current carrying value) is applied to the related indemnification asset to mirror an accounting offset for the indemnified loans. Any negative yield is determined based on the remaining term of the indemnification agreement. Both accretion (positive yield) and amortization (negative yield) from the indemnification asset are 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. A decrease in expected cash flows is recorded in the indemnification asset for the portion that previously was expected to be reimbursed from the FDIC resulting in an increase in the Provision for credit losses that was previously recorded in the allowance for loan losses. 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. The IndyMac transaction encompassed multiple loss sharing agreements that provided protection from certain losses related to purchased SFR loans and reverse mortgage proprietary loans. In addition, CIT is party to the FDIC agreement to indemnify OneWest Bank, subject to certain requirements and limitations, for third party claims from the Government Sponsored Enterprises (“GSEs” or “Agencies”) related to IndyMac selling representations and warranties, as well as liabilities arising from the acts or omissions (including, without limitation, breaches of servicer obligations) of IndyMac as servicer. In addition, the Company recorded a separate FDIC true-up liability for an estimated payment due to the FDIC at the expiry of the La Jolla loss share agreement, 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 loss share agreement. There is no FDIC true-up liability recorded in connection with the First Federal or IndyMac transaction. 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. For further discussion, see Note 5 - Indemnification Assets . |
Goodwill And Intangible Assets | Prepaid Railcar Certification Costs The Company incurs certain costs related to rail tank car safety certifications. These certification costs provide a long term benefit to the Company as they allow the rail tank cars to comply with government standards and as such, secure the use of these assets over future periods. These costs are accounted for as a prepaid expense and classified within Other Assets and are amortized over the life cycle of the anticipated benefit of the re-certification (approximately 10 years ). Goodwill and Intangible Assets The Company’s goodwill primarily represented the excess of the purchase prices paid for acquired businesses over the respective fair value of net asset values acquired. The goodwill was assigned to reporting units at the date the goodwill was initially recorded. Once the goodwill was assigned to the reporting unit level, it no longer retained its association with a particular transaction, and all of the activities within the reporting unit, 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) as of January 1, 2017. ASU 2017-04 eliminates the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of the goodwill impairment test under current GAAP) to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value (i.e., measure the charge based on today’s Step 1). The one-step impairment test will be applied to goodwill for all reporting units, even those with zero or negative carrying amounts. This guidance was applied prospectively to transactions occurring within the period of adoption. The adoption did not result in any impact on the Company’s financial statements. Goodwill is not amortized but it is subject to impairment testing at the reporting unit 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 that includes the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount before performing the quantitative goodwill impairment test. Examples of qualitative factors to assess include macroeconomic conditions, industry and market considerations, market changes affecting the Company’s products and services, overall financial performance, and Company specific events affecting operations. 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 reporting unit is less than its carrying amount, CIT would be required to perform the quantitative goodwill impairment test for that reporting unit. The quantitative goodwill impairment test involves comparing the fair value of the reporting unit with its carrying value, including goodwill as measured by allocated equity. If the fair value of the reporting unit 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 reporting unit. Reporting unit fair values are primarily estimated using discounted cash flow models. See Note 26 - Goodwill and Intangible Assets for further details. Intangible assets relate to acquisitions and the remaining amount from FSA adjustments. Intangible assets have finite lives and as detailed in Note 26 - Goodwill and Intangible Assets , 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. |
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., 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 10 - Borrowings. Tax credit investments that were acquired in the OneWest Bank Transaction, including the commitment to contribute additional capital over the term of the investment, were recorded at fair value at the acquisition date. Effective in the fourth quarter of 2017, CIT changed its accounting policy for Low Income Housing Tax Credit ("LIHTC") investments from the equity method to the proportional amortization method as it was management's determination to be the preferable method. The proportional amortization method provides an improved presentation for the reporting of these investments by presenting the investment performance net of taxes as a component of income tax expense (benefit), which more fairly represents the economics and provides users with a better understanding of the returns from such investments than the prior equity method. Prior to the accounting change, the existing LIHTC investments represented primarily the acquired investments from the OneWest acquisition. As the accounting change had an immaterial impact to prior period financial statements (for the years ended December 31, 2016 and 2015, and the first, second and third quarter of 2017), the effect of the change was recognized in the fourth quarter of 2017 with a net income decrease of $ 8.8 million (increase of $ 29.4 million in other non-interest income with a corresponding increase of $ 38.2 million in provision for income taxes) with a reduction to the tax credit investments by approximately $ 10.5 million (within Other Assets) and increase to Deferred tax asset of $ 1.8 million recognized in the quarter ended December 31, 2017. Tax credit investments are evaluated for potential impairment at least annually, or more frequently when events or conditions indicate that it is probable that the Company will not recover its investment. Potential indicators of impairment might arise when there is evidence that some or all tax credits previously claimed by the limited liability entities would be recaptured, or that expected remaining credits would no longer be available to the limited liability entities. If an investment is determined to be impaired, it is written down to its estimated fair value and the new cost basis of the investment is not adjusted for subsequent recoveries in value. These investments are included within other assets and any impairment loss would be recognized in other non-interest income. Other Real Estate Owned Other real estate owned (“OREO”) represents collateral acquired from the foreclosure of secured loans and is being actively marketed for sale. These assets are initially recorded at the lower of cost or market value less disposition costs. Estimated market 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 market 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 valuation allowance (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 shall 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. As the servicer of securitizations of loans or equipment leases, the Company may be required to make servicing advances on behalf of obligors if the Company determines that any scheduled payment was not received prior to the end of the applicable collection period. Such advances may be limited by the Company based on its assessment of recoverability of such amounts in subsequent collection periods. The reimbursement of servicing advances to the Company is generally prioritized over the distribution of any payments to the investors in the securitizations. A receivable is recognized for the advances that are expected to be reimbursed, while a loss is recognized in operating expenses for advances that are not expected to be reimbursed. 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 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. Due to the Company’s planned exit of third party servicing operations, the servicing advances for third party serviced reverse mortgage loans are designated as Assets of discontinued operations held for sale. |
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. The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) includes measures to broaden the scope of derivative instruments subject to regulation by requiring clearing and exchange trading of certain derivatives, and imposing margin, reporting and registration requirements for certain market participants. Since the Company does not meet the definition of a Swap Dealer or Major Swap Participant under the Dodd-Frank Act, the reporting and clearing obligations apply to a limited number of derivative transactions executed with its lending customers in order to manage their interest rate risk. Derivatives utilized by the Company may include swaps, forward settlement contracts and options contracts. A swap agreement is a contract between two parties to exchange cash flows based on specified underlying notional amounts, assets and/or indices. Forward settlement contracts are agreements to buy or sell a quantity of a financial instrument, index, currency or commodity at a predetermined future date, and rate or price. An option contract is an agreement that gives the buyer the right, but not the obligation, to buy or sell an underlying asset from or to another party at a predetermined price or rate over a specific period of time. CIT early adopted ASU 2017-12, Derivatives and Hedging (Topic 815) -Targeted Improvements to Accounting for Hedging Activities , in the fourth quarter of 2017, effective January 01, 2017, under the modified retrospective approach. The new hedging guidance better aligns the Company’s financial reporting for hedging activities with the economic objectives of those activities and simplifies the application of the hedge accounting model. Among other things, ASU 2017-12: (a) expands the types of transactions eligible for hedge accounting; (b) eliminates the separate measurement and presentation of hedge ineffectiveness; (c) simplifies the requirements around the assessment of hedge effectiveness; (d) provides companies more time to finalize hedge documentation; and (e) enhances presentation and disclosure requirements. As a result of the adoption, in the fourth quarter of 2017, CIT reclassified all of its HTM debt securities to AFS after evaluating and confirming that these portfolios met the eligibility criteria. There was no impact to the Consolidated Statements of Income. 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, changes in fair value of the derivative is reflected in earnings. The Company utilizes cross-currency swaps and 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 also enters into foreign currency forward contracts to manage the foreign currency risk associated with its non-U.S. subsidiaries’ funding activities and designates these as foreign currency cash flow hedges for which certain components are reflected in AOCI and others recognized in noninterest income when the underlying transaction impacts earnings. The Company uses foreign currency forward contracts, interest rate swaps, cross currency 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. All derivative instruments are recorded at their respective fair value. Derivative instruments that qualify for hedge accounting are presented in the balance sheet at their fair values in other assets or other liabilities, with changes in fair value (gains and losses) of cash flow hedges deferred in AOCI, a component of equity. For qualifying derivatives with periodic interest settlements, e.g. interest rate swaps, interest income or interest expense is reported as a separate line item in the Consolidated Statements of Income. Derivatives that do not qualify for hedge accounting are also presented in the Balance Sheet in other assets or other liabilities, but with their resulting gains or losses recognized in other non-interest income. For non-qualifying derivatives with periodic interest settlements, the Company reports interest income with other changes in fair value in other non-interest income. Fair value is based on dealer quotes, pricing models, discounted cash flow methodologies, or similar techniques for which the determination of fair value may require significant management judgment or estimation. The fair value of the derivative is reported on a gross-by-counterparty basis. Valuations of derivative assets and liabilities reflect the value of the instrument including the Company’s and counterparty’s credit risk. CIT is exposed to credit risk to the extent that the counterparty fails to perform under the terms of a derivative. Losses related to credit risk are reflected in other non-interest income. The Company manages this credit risk by requiring that all derivative transactions entered into as hedges be conducted with counterparties rated investment grade at the initial transaction by nationally recognized rating agencies, and by setting limits on the exposure with any individual counterparty. In addition, pursuant to the terms of the Credit Support Annexes between the Company and its counterparties, CIT may be required to post collateral or may be entitled to receive collateral in the form of cash or highly liquid securities depending on the valuation of the derivative instruments as measured on a daily basis. |
Fair Value | Fair Value Fair Value Hierarchy CIT measures the fair value of its financial assets and liabilities in accordance with ASC 820, Fair Value Measurements, which defines fair value, establishes a consistent framework for measuring fair value and requires disclosures about fair value measurements. The Company categorizes its financial instruments, based on the significance of inputs to the valuation techniques, according to the following three-tier fair value hierarchy: · 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 that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using valuation models, discounted cash flow methodologies or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category generally includes highly structured or long-term derivative contracts and structured finance securities where independent pricing information cannot be obtained for a significant portion of the underlying assets or liabilities. Valuation Process The Company has various processes and controls in place to ensure that fair value is reasonably estimated. The Company generally determines the estimated fair value of Level 3 assets and liabilities by using internally developed models and, to a lesser extent, prices obtained from third-party pricing services or broker dealers (collectively, third party vendors). The Company’s internally developed models primarily consist of discounted cash flow techniques, which require the use of relevant observable and unobservable inputs. Unobservable inputs are generally derived from actual historical performance of similar assets or are determined from previous market trades for similar instruments. These unobservable inputs include discount rates, default rates, loss severity and prepayment rates. Internal valuation models are subject to review prescribed by the Company’s model validation policy that governs the use and control of valuation models used to estimate fair value. This policy requires review and approval of significant models by the Company’s model review group, who are independent of the business units and perform model validation. 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. Procedures and controls are in place to ensure new and existing models are subject to periodic validations by the Independent Model Validation Group (“IMV”). 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, are subject to additional oversight, at least quarterly, by the Company’s Valuation Reserve Working Group (“VRWG”), which consists of senior management, which reviews the Company’s valuations for complex instruments. 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 information obtained and valuation techniques used are appropriate. The Company monitors and reviews the results (e.g., non-binding broker quotes and prices) from these third party vendors to ensure the estimated fair values are reasonable. Although the inputs used by the third party vendors are generally not available for review, the Company has procedures in place to provide reasonable assurance that the relied upon information is complete and accurate. Such procedures may include, as available and applicable, comparison with other pricing vendors, corroboration of pricing by reference to other independent market data and investigation of prices of individual assets and liabilities. Fair Value Option Certain MBS securities are carried at fair value with changes recorded in net income. Unrealized gains and losses are reflected as part of the overall changes in fair value. The Company recognizes interest income on an effective yield basis over the expected remaining life under the accretable yield method pursuant to ASC 310-30. Unrealized and realized gains or losses are reflected in other non-interest income. The determination of fair value for these securities is discussed in Note 13 - Fair Value . |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the expected future taxation of events that have been reflected in the consolidated financial statements. Deferred tax assets and liabilities are determined based on the differences between the book values and the tax basis of particular assets and liabilities, using tax rates in effect for the years in which the differences are expected to reverse. A valuation allowance 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 valuation allowance. This reduces the valuation allowance 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 financial reporting purposes is based on management’s best judgment of the most likely outcome resulting from examination given the facts, circumstances and information available at the reporting date. 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. The Tax Cuts and Jobs Act was enacted on December 22, 2017 and is expected to significantly impact CIT's accounting for and reporting of income taxes, and related processes and controls. CIT will account for the effect of this change in the period of enactment (i.e., 2017). 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 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 In addition to U.S. operations, the Company has operations in Europe and other jurisdictions. The functional currency for foreign operations is generally the local currency, other than in the Commercial Air business. In this business, most of which is reported as discontinued operations, the U.S. dollar is typically the functional currency. The value of assets and liabilities of the foreign operations is translated into U.S. dollars at the rate of exchange in effect at the balance sheet date. Revenue and expense items are translated at the average exchange rates during the year. The resulting foreign currency translation gains and losses, as well as offsetting gains and losses on hedges of net investments in foreign operations, are reflected in AOCI. Transaction gains and losses resulting from exchange rate changes on transactions denominated in currencies other than the functional currency are included in other non-interest income. |
Pension and Other Postretirement Benefit | Pension and Other Postretirement Benefits CIT has both funded and unfunded noncontributory defined benefit pension and postretirement plans covering certain U.S. and non-U.S. employees, each of which is designed in accordance with the practices and regulations in the related countries. Recognition of the funded status of a benefit plan, which is measured as the difference between plan assets at fair value and the benefit obligation, is included in the Balance Sheet. The Company recognizes as a component of Other Comprehensive Income, net of tax, the net actuarial gains or losses and prior service cost or credit that arise during the period but are not recognized as components of net periodic benefit cost in the Consolidated Statements of Income. |
Variable Interest Entities | Variable Interest Entities A VIE is a corporation, partnership, limited liability company, or any other legal structure used to conduct activities or hold assets. These entities: lack sufficient equity investment at risk to permit the entity to finance its activities without additional subordinated financial support from other parties; have equity owners who either do not have voting rights or lack the ability to make significant decisions affecting the entity’s operations; and/or have equity owners that do not have an obligation to absorb the entity’s losses or the right to receive the entity’s returns. The Company accounts for its VIEs in accordance with Accounting Standards Update (“ASU”) 2009-16, Transfers and Servicing (Topic 860) - Accounting for Transfers of Financial Assets and ASU 2009-17, Consolidations (Topic 810) - Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities as updated by ASU 2015-02. ASC 810 requires qualified special purpose entities to be evaluated for consolidation and addressed the approach for determining a VIE’s PB and required companies to more frequently reassess whether they must consolidate VIEs. The PB is the party that has both (1) the power to direct the activities of an entity that most significantly impact the VIE’s economic performance; and (2) through its interests in the VIE, the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. ASU 2015-02 provides guidance on the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a VIE, and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. To assess whether the Company has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, the Company considers all facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes, first, identifying the activities that most significantly impact the VIE’s economic performance; and second, identifying which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the VIE (such as asset managers, collateral managers, servicers, or owners of call options or liquidation rights over the VIE’s assets) or have the right to unilaterally remove those decision-makers are deemed to have the power to direct the activities of a VIE. To assess whether the Company has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Company considers all of its economic interests, including debt and equity investments, servicing fees, and derivative or other arrangements deemed to be variable interests in the VIE. This assessment requires that the Company apply judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE’s capital structure; and the reasons why the interests are held by the Company. The Company performs on-going reassessments of: (1) whether any entities previously evaluated under the majority voting-interest framework have become VIEs, based on certain events, and are therefore subject to the VIE consolidation framework; and (2) whether changes in the facts and circumstances regarding the Company’s involvement with a VIE cause the Company’s consolidation conclusion regarding the VIE to change. When in the evaluation of its interest in each VIE it is determined that the Company is considered the PB, the VIE’s assets, liabilities and non-controlling interests are consolidated and included in the consolidated financial statements. See Note 10 - Borrowings for further details. Consolidated VIEs The most significant types of VIEs that CIT utilizes are 'on balance sheet' secured financings of pools of leases and loans originated by the Company where the Company is the primary beneficiary. The main risks inherent in structured financings are deterioration in the credit performance of the vehicle's underlying asset portfolio and risk associated with the servicing of the underlying assets. Lenders typically have recourse to the assets in the VIEs and may benefit from other credit enhancements, such as: (1) a reserve or cash collateral account that requires the Company to deposit cash in an account, which will first be used to cover any defaulted obligor payments, (2) over-collateralization in the form of excess assets in the VIE, or (3) subordination, whereby the Company retains a subordinate position in the secured borrowing which would absorb losses due to defaulted obligor payments before the senior certificate holders. The VIE may also enter into derivative contracts in order to convert the debt issued by the VIEs to match the underlying assets or to limit or change the risk of the VIE. With respect to events or circumstances that could expose CIT to a loss as these are accounted for as on balance sheet, the Company records an allowance for loan losses for the credit risks associated with the underlying leases and loans. The VIE has an obligation to pay the debt in accordance with the terms of the underlying agreements. Generally, third-party investors in the obligations of the consolidated VIEs have legal recourse only to the assets of the VIEs and do not have recourse to the Company beyond certain specific provisions that are customary for secured financing transactions, such as asset repurchase obligations for breaches of representations and warranties. In addition, the assets are generally restricted to pay only such liabilities. Unconsolidated VIE’s Unconsolidated VIEs include government sponsored entity ("GSE") securitization structures, private-label securitizations and limited partnership interests where the Company's involvement is limited to an investor interest where the Company does not have the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE and limited partnership interests. |
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) factoring commissions, (2) gains and losses on sales of leasing equipment, (3) fee revenues, including fees on lines of credit, letters of credit, capital markets related fees, agent and advisory fees, service charges on deposit accounts, and servicing fees on loans CIT services for others, (4) gains and losses on loan and portfolio sales, (5) gains and losses on OREO sales, (6) gains and losses on investments, (7) gains and losses on derivatives and foreign currency exchange, (8) impairment on assets held for sale, and (9) other revenues. Other revenues include items that are more episodic in nature, such as gains on work-out related claims, recoveries on acquired loans or loans charged off prior to transfer to AHFS, proceeds received in excess of carrying value on non-accrual accounts held for sale 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 deprecation on operating lease equipment, maintenance and other operating lease expenses, loss on debt extinguishments and deposit redemptions and operating expenses. Operating expenses consists of (1) compensation and benefits, (2) technology costs, (3) professional fees, (4) insurance, (5) net occupancy expenses, (6) restructuring costs, (7) advertising and marketing, (8) intangible assets amortization, and (9) other expenses. |
Stock-Based Compensation | Stock-Based Compensation Compensation expense associated with equity-based awards is recognized over the vesting period (requisite service period), generally three years, under the “graded vesting” attribution method, whereby each vesting tranche of the award is amortized separately as if each were a separate award. The cost of awards granted to directors in lieu of cash is recognized using the single grant approach with immediate vesting and expense recognition. Expenses related to stock-based compensation are included in operating expenses (compensation and benefits). |
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. |
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. Most factoring receivables are presented on a net basis 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 in accordance with ASC 230-10-45-21 when these assets are originated/acquired and designated specifically for resale. 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 in accordance with ASC 230-10-45-12 and 230-10-45-13. 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. Because the restricted cash results from a contractual requirement to invest cash balances as stipulated, CIT’s change in restricted cash balances is classified as cash flows from (used for) investing activities. Activity of discontinued operations is included in various line items of the Consolidated Statements of Cash Flows and summary items are disclosed in Note 2 - Discontinued Operations . |
Accounting Pronouncements Adopted | Accounting Pronouncements Adopted During 2017, the Company adopted the following Accounting Standards Updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”): Derivatives and Hedging ASU 2016-05, Derivatives and Hedging (Topic 815) - Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships , clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. CIT adopted ASU 2016-05, effective January 1, 2017. Historically, CIT has not novated any derivative instrument that was designated as a hedging instrument and as such the adoption of this ASU had no impact on CIT’s consolidated financial statements or disclosures. ASU 2016-06, Derivatives and Hedging (Topic 815) - Contingent Put and Call Options in Debt Instruments , clarifies that in assessing whether an embedded contingent put or call option is clearly and closely related to the debt host, an entity is required to perform only the four-step decision sequence in ASC 815, as amended by the ASU. Accordingly, when a call (put) option is contingently exercisable, there is no requirement that an entity must assess whether the event that triggers the ability to exercise a call (put) option is related to interest rate or credit risk. CIT adopted ASU 2016-06 as of January 1, 2017. The adoption did not have a material impact on the Company’s consolidated financial statements or disclosures. ASU 2017-12, Derivatives and Hedging (Topic 815) -Targeted Improvements to Accounting for Hedging Activities , better aligns a company’s financial reporting for hedging activities with the economic objectives of those activities and simplifies the application of the hedge accounting model. Among other things, ASU 2017-12: (a) expands the types of transactions eligible for hedge accounting; (b) eliminates the separate measurement and presentation of hedge ineffectiveness; (c) simplifies the requirements around the assessment of hedge effectiveness; (d) provides companies more time to finalize hedge documentation; and (e) enhances presentation and disclosure requirements. CIT early adopted ASU 2017-12 in the fourth quarter of 2017, effective January 1, 2017, under the modified retrospective approach. As a result of the adoption, CIT reclassified its HTM debt securities to AFS after evaluating and confirming that these portfolios met the eligibility criteria. There was no impact to the Company's Consolidated Statements of Income. Investments - Equity Method and Joint Ventures ASU 2016-07, Investments - Equity Method and Joint Ventures (Topic 323) - Simplifying the Transition to the Equity Method of Accounting , eliminates the requirement that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. For available-for-sale securities that become eligible for the equity method of accounting, any unrealized gain or loss recorded within accumulated other comprehensive income should be recognized in earnings at the date the investment initially qualifies for the use of the equity method. The new standard should be applied prospectively to investments that qualify for the equity method of accounting after the effective date. CIT adopted this amendment as of January 1, 2017. The adoption did not have a material impact on the Company’s consolidated financial statements or disclosures. Compensation - Stock Compensation In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Account . The amendments simplify several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures, statutory tax withholding requirements, and cash flow statements. CIT adopted this update as of January 1, 2017. The adoption did not have a material impact on CIT’s financial statements or disclosures. CIT has changed its accounting policy to account for forfeitures as they occur in order to determine the amount of compensation cost to be recognized in each period. The Company also retrospectively applied the presentation requirements for cash flows related to employee taxes paid for withheld shares resulting in a reclassification of $21.9 million and $22.2 million from operating activities to financing activities for December 31, 2016 and December 31, 2015, respectively in the Company’s Consolidated Statements of Cash Flows and also in the Parent Company Statements of Cash Flows in Note 28. Accounting Changes and Error Corrections and Investments - Equity Method and Joint Ventures ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments - Equity Method and Joint Ventures (Topic 323), amends certain SEC paragraphs to incorporate SEC staff announcements made at the September 22, 2016, and November 17, 2016, Emerging Issues Task Force meetings. ASU 2017-03 incorporates these SEC staff views into ASC 250 and adds references to that guidance in the transition paragraphs of each of the three new standards ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , ASU 2016-02, Leases (Topic 842) , and ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments relating to expanded disclosures under SAB 74, Topic 11.M. The ASU also conforms with ASC 323-740-S99-2, which describes the SEC staff’s views on accounting for investments in qualified affordable housing projects, to the guidance issued in ASU 2014-01. CIT adopted the guidance as it relates to Topic 250, Accounting Changes and Error Corrections, and ASC Topic 323, Investments - Equity Method and Joint Ventures as of January 1, 2017. The adoption did not have a material impact on the Company’s consolidated financial statements or disclosures. CIT plans to align the adoption of the update with the relevant adoption dates of these standards. Intangibles - Goodwill and Other ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) , eliminates the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of the goodwill impairment test under current GAAP) to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value (i.e., measure the charge based on Step 1). The one-step impairment test will be applied to goodwill for all reporting units, even those with zero or negative carrying amounts. This guidance is required to be applied prospectively to transactions occurring within the period of adoption. CIT early adopted this standard as of January 1, 2017. The adoption did not result in any impact on the Company’s consolidated financial statements or disclosures. |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS The following accounting pronouncements have been issued by the FASB but are not yet effective: Standard Summary of Guidance Effect on CIT's Financial Statements ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , and subsequent related ASUs Issued May 2014, with Updates through May 2016 • Establishes the principles to apply in determining the amount and timing of revenue recognition. • The guidance specifies the accounting for certain costs related to revenue, and requires additional disclosures about the nature, amount, timing and uncertainty of revenues and related cash flows. • The core principle is that a company will recognize revenue when it transfers control of goods or services to customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. • The standard defers to existing guidance where revenue recognitions models are already in place, which applies to the majority of CIT's revenue streams; however certain components of our "Other non-interest income" required assessment at a detail level. • Under the modified retrospective adoption method elected by CIT, financial statements will be prepared for the year of adoption using the new standard, but prior periods will not be adjusted. Instead, the Company will recognize a cumulative catch-up adjustment to the opening balance of retained earnings at the effective date for contracts that still require performance by the Company and disclose all line items in the year of adoption as if they were prepared under current revenue guidance. • CIT adopted this guidance as of January 1, 2018. • “Interest Income” and “Rental Income on Operating Leases”, CIT’s two largest revenue items, are out of scope of the new guidance; as are many other revenues relating to financial assets and liabilities, including loans, leases, securities and derivatives. As such, the majority of our revenues are not impacted; however, certain ancillary revenues and components of “Other non-interest income” are impacted by the new standard. • There was not a material impact on our consolidated financial statements and disclosures. Disclosure enhancements are more qualitative in nature. • CIT adopted the standard using the modified retrospective method. ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) Issued February 2017 • This guidance clarifies the scope of accounting for derecognition or partial sale of nonfinancial assets to exclude all businesses and non-profit activities. • ASU 2017-05 also provides a definition for in-substance nonfinancial assets and additional guidance on partial sales of nonfinancial assets. • CIT adopted this guidance as of January 1, 2018 in conjunction with the new revenue recognition standard on a modified retrospective basis. • The adoption of this standard did not have a material impact on our consolidated financial statements and disclosures. Disclosure enhancements are more qualitative in nature. ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities Issued June 2016 • Includes amendments on recognition, measurement, presentation and disclosure of financial instruments. • Adds a new Topic ( ASC 321, Investments - Equity Securities ) to the FASB Accounting Standards Codification, which provides guidance on accounting for equity investments. • The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption of the Update. • Requires adoption by applying a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. • CIT adopted this guidance as of January 1, 2018. • The adoption of this standard did not have a material impact on CIT’s consolidated financial statements and disclosures. ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory Issued October 2016 • Requires that the Company recognize the tax expense from the sale of an asset in the seller’s tax jurisdiction when the transfer occurs, and any deferred tax asset that arises in the buyer’s jurisdiction would also be recognized at the time of the transfer even though the pre-tax effects of the transaction are eliminated in consolidation. • The modified retrospective approach is required for transition to the new guidance, with a cumulative-effect adjustment recorded in retained earnings as of the beginning of the period of adoption. • CIT adopted this guidance as of January 1, 2018. • The adoption of this standard did not have a material impact on CIT's consolidated financial statements and disclosures. ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments Issued August 2016 • Clarifies how entities should classify certain cash receipts and cash payments on the Statement of Cash Flows. The new guidance also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. • Requires retrospective application to all periods presented. • CIT adopted this guidance as of January 1, 2018. • The adoption of this standard did not have a material impact on CIT’s consolidated financial statements and disclosures. ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash Issued November 2016 • Requires that the Statement of Cash Flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. • Requires adoption using a retrospective transition method for each period presented. • CIT adopted this guidance as of January 1, 2018. • The adoption of this standard did not have a material impact on CIT’s consolidated financial statements and disclosures. ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business Issued January 2017 • This guidance narrows the definition of a business. This standard provides guidance to assist entities with evaluating when a set of transferred assets and activities is a business. • This guidance must be applied prospectively, on and after the date of adoption. • CIT adopted this guidance as of January 1, 2018. • The adoption of this standard did not have a material impact on CIT’s consolidated financial statements and disclosures. ASU 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost Issued March 2017 • Requires employers that present a measure of operating income in their Statement of Income to include only the service cost component of net periodic pension cost and net periodic postretirement benefit cost in operating expenses (together with other employee compensation costs). • The other components of net benefit cost, including amortization of prior service cost/credit, and settlement and curtailment effects, are to be included in non-operating expenses in a separate line item(s). • Stipulates that only the service cost component of net benefit cost is eligible for capitalization. • The amendments related to presentation of service cost and other components in the Income Statements must be applied retrospectively to all periods presented. The amendments related to the capitalization of the service cost component should be applied prospectively, on and after the date of adoption. • CIT adopted this guidance as of January 1, 2018. • The adoption of this guidance did not have a material impact on CIT’s consolidated financial statements and disclosures. ASU 2017-09, Compensation -Stock Compensation (Topic 718): Scope of Modification Accounting Issued May 2017 • The amendments in this Update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. • This guidance must be adopted prospectively to an award modified on or after the adoption date. • CIT adopted this guidance as of January 1, 2018. • This standard was adopted prospectively and did not have a material impact on CIT’s consolidated financial statements and disclosures. ASU 2017-08, Receivables -Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities Issued March 2017 • ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. • The new guidance applies to all entities that hold investments in callable debt securities for which the amortized cost basis exceeds the amount repayable by the issuer at the earliest call date (i.e., at a premium). • This guidance must be adopted on a modified retrospective basis through a cumulative-effect adjustment to retained earnings. • Effective for CIT as of January 1, 2019. • CIT is currently evaluating the impact of this standard on its consolidated financial statements and disclosures and does not intend to early adopt this standard. ASU 2016-02, Leases (Topic 842) Issued February 2016 • Lessees will need to recognize all leases longer than twelve months on the consolidated balance sheets as lease liabilities with corresponding right-of-use assets. For Income Statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit thresholds. • Lessor accounting remains similar to the current model, but updated 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. Lease classifications by lessors are similar, operating, direct financing, or sales-type. • The ASU requires both quantitative and qualitative disclosures regarding key information about leasing arrangements. The new standard must be adopted using a modified retrospective transition, and provides for certain practical expedients. Transition will require application of the new guidance at the beginning of the earliest comparative period presented. Early adoption is permitted. • Effective for CIT as of January 1, 2019. • CIT will need to determine the impact where it is both a lessee and a lessor: • Lessor accounting: CIT is analyzing the impact of changes to the definition of ‘initial direct costs’ under the new guidance. The new standard has a narrower definition of initial direct costs, which will result in CIT recognizing increased upfront expenses offset by higher yield over the lease term. CIT is currently evaluating the bifurcation of certain non-lease components from lease revenue streams. If goods or services are determined to be a non-lease component and accounted for under ASC 606 or other applicable GAAP guidance, the income recognition may differ from current accounting. CIT expects that it will bifurcate certain maintenance components relating to our railcar business. • Lessee accounting: CIT is continuing to evaluate the impact of the amended guidance on its Condensed consolidated financial statements. CIT expects to recognize right-of-use assets and lease liabilities for substantially all of its operating lease commitments based on the present value of unpaid lease payments as of the date of adoption. • CIT management has assembled a project committee to assess the impact of this guidance. Initial scoping and assessment is complete and CIT is continuing to evaluate the impact on its consolidated financial statements and disclosures. ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Issued June 2016 • Introduces a forward-looking “expected loss” model (the “Current Expected Credit Losses” (“CECL”) model) to estimate credit losses to cover the full remaining expected life of the portfolio upon adoption, rather than the incurred loss model under current U.S. GAAP, on certain types of financial instruments. • It eliminates existing guidance for PCI loans, and requires recognition of an allowance for expected credit losses on financial assets purchased with more than insignificant credit deterioration since origination. • It amends existing impairment guidance for AFS securities to incorporate an allowance, which will allow for reversals of impairment losses in the event that the credit of an issuer improves. • In addition, it expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the ALLL. • Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted (modified-retrospective approach). • Effective for CIT as of January 1, 2020. • CIT management has established a project team and an oversight committee to assess the impact of this guidance and implement this standard. Initial gap assessment is complete and CIT is continuing to evaluate the impact on its consolidated financial statements and disclosures. • While CIT is currently in the process of evaluating the impact of the amended guidance on its Condensed consolidated financial statements, it currently expects the ALLL to increase upon adoption given that the allowance will be required to cover the full remaining expected life of the portfolio upon adoption, rather than the incurred loss model under current U.S. GAAP. The extent of this increase is still being evaluated and will depend on economic conditions and the composition of CIT’s loan and lease portfolios at adoption date. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Condensed Balance Sheet, Statement Of Operations, And Cash Flows From Discontinued Operations | The following condensed balance sheet reflects the Business Air business as of December 31, 2017 and a combination of the Commercial Air and Business Air businesses as of December 31, 2016 . The condensed statements of income include Commercial Air up to the sale on April 4, 2017, and Business Air for all periods. The Commercial Air sale price was $ 10.4 billion , and we recorded a pre-tax gain of $ 146 million ($ 106 million after tax), which is included in the Condensed Statement of Income below for the year ended December 31, 2017 . Business Air offered financing and leasing programs for corporate and private owners of business jets. Products included term loans, leases, pre-delivery financing, fractional share financing and vendor / manufacturer financing. Condensed Balance Sheet — Aerospace Discontinued Operations (dollars in millions) December 31, 2017 December 31, 2016 Total cash and deposits $ — $ 759.0 Net Loans 165.8 1,047.7 Operating lease equipment, net 18.4 9,677.6 Goodwill — 126.8 Other assets (1) — 1,161.5 Assets of discontinued operations $ 184.2 $ 12,772.6 Secured borrowings $ — $ 1,204.6 Other liabilities (2) 8.8 1,597.3 Liabilities of discontinued operations $ 8.8 $ 2,801.9 (1) Amount includes deposits on commercial aerospace equipment of $1,013.7 million at December 31, 2016 . (2) Amount includes commercial aerospace maintenance reserves of $1,084.9 million and security deposits of $167.0 million at December 31, 2016 . Condensed Statement of Income — Aerospace Discontinued Operations (dollars in millions) Years Ended December 31, 2017 2016 2015 Interest income $ 29.3 $ 72.8 $ 70.2 Interest expense 99.6 369.3 366.5 Provision for credit losses — 15.6 1.8 Rental income on operating leases 312.5 1,236.8 1,134.4 Other non-interest income (1) 9.0 22.5 56.5 Depreciation on operating lease equipment (2) — 345.6 411.4 Maintenance and other operating lease expenses 4.2 32.1 45.8 Operating expenses (3) 39.6 101.9 68.2 Loss on debt extinguishment (4) 39.0 8.3 1.1 Income from discontinued operations before provision for income taxes 168.4 459.3 366.3 Provision for income taxes (5) 70.5 914.6 45.9 Gain on sale of discontinued operations, net of taxes 118.6 — — Income (loss) from discontinued operations, net of taxes $ 216.5 $ (455.3 ) $ 320.4 (1) Other non-interest income includes impairment charges on assets transferred to AHFS of $32 million and $4 million for the years ended 2016 and 2015 , respectively. (2) Depreciation on operating lease equipment is suspended when an operating lease asset is placed in Assets Held for Sale. Pre-tax income for 2016 benefited from $ 106 million of suspended depreciation related to operating lease equipment (3) Operating expenses include salaries and benefits and other operating expenses in prior quarters. Operating expenses included costs related to the commercial air separation initiative for the years ended December 31, 2017 and 2016. (4) The Company repaid approximately $1 billion of secured borrowings in the first quarter of 2017 within discontinued operations and recorded a loss of $39 million in relation to the extinguishment of those borrowings. (5) Provision for income taxes for the year ended December 31, 2016 includes $847 million net tax expense related to the Company's decision to no longer assert that it would indefinitely reinvest the unremitted earnings of Commercial Air. For the years ended December 31, 2017 , 2016 and 2015 , the Company's tax rate for discontinued operations was 42% , 199% and 12% , respectively. The following tables reflect the combined results of discontinued operations. Details of balances are discussed in the prior tables. Condensed Combined Balance Sheets of Discontinued Operations (dollars in millions) December 31, 2017 December 31, 2016 Total cash and deposits $ 7.7 $ 764.8 Net Loans 438.6 1,421.7 Operating lease equipment, net 18.4 9,677.6 Goodwill — 126.8 Other assets 36.6 1,229.8 Assets of discontinued operations $ 501.3 $ 13,220.7 Secured borrowings $ 268.2 $ 1,571.0 Other liabilities 241.1 2,166.7 Liabilities of discontinued operations $ 509.3 $ 3,737.7 Condensed Combined Statements of Income of Discontinued Operations (dollars in millions) Years Ended December 31, 2017 2016 2015 Interest income $ 39.5 $ 84.4 $ 74.5 Interest expense 109.1 380.0 370.9 Provision for credit losses — 15.6 1.8 Rental income on operating leases 312.5 1,236.8 1,134.4 Other non-interest income (loss) (13.9 ) 37.9 73.2 Depreciation on operating lease equipment — 345.6 411.4 Maintenance and other operating lease expenses 4.2 32.1 45.8 Operating expenses 30.0 432.0 101.9 Loss on debt extinguishment 39.0 8.3 1.1 Income from discontinued operations before provision for income taxes 155.8 145.5 349.2 Provision for income taxes 65.6 810.9 39.2 Gain on sale of discontinued operations, net of taxes 118.6 — — Income (loss) from discontinued operations, net of taxes $ 208.8 $ (665.4 ) $ 310.0 Condensed Combined Statement of Cash Flows of Discontinued Operations (dollars in millions) Years Ended December 31, 2017 2016 2015 Net cash flows (used in) provided by operations $ (14.6 ) $ (4.3 ) $ 960.6 Net cash flows provided by (used in) investing activities 10,925.3 (567.4 ) (721.7 ) The results from discontinued operations for the years ended December 31, 2017 , 2016 and 2015 , which includes approximately five months of activity, are presented below. Condensed Statements of Income — Financial Freedom Discontinued Operation (dollars in millions) Years Ended December 31, 2017 2016 2015 Interest income (1) $ 10.2 $ 11.6 $ 4.3 Interest expense (1) 9.5 10.7 4.4 Other non-interest income (loss) (2) (22.9 ) 15.4 16.7 Operating expenses (benefit) (3) (9.6 ) 330.1 33.7 Loss from discontinued operations before benefit for income taxes (12.6 ) (313.8 ) (17.1 ) (Benefit) for income taxes (4) (4.9 ) (103.7 ) (6.7 ) Loss from discontinued operations, net of taxes $ (7.7 ) $ (210.1 ) $ (10.4 ) (1) Includes amortization for the premium associated with the HECM loans and related secured borrowings. (2) For the year ended December 31, 2017 and December 31, 2016 , other non-interest income (loss) included an impairment charge of approximately $50 million and $ 19 million , respectively, on the mortgage servicing liability. (3) For the year ended December 31, 2017 , 2016 and 2015, operating expense is comprised of approximately $19 million , $16 million and $11 million in salaries and benefits, $11 million , $27 million and $6 million in professional and legal services, and $17 million , $22 million and $16 million for other expenses such as data processing, premises and equipment, and miscellaneous charges, respectively. In addition, for the year ended December 31, 2017 operating expenses included a net release of the curtailment reserve of $111 million which is net of a corresponding decrease in the indemnification receivable from the FDIC, partially offset by an increase of $40 million in other servicing-related reserve. For the year ended December 31, 2016, operating expenses included an increase in servicing-related reserve of approximately $260 million net of a corresponding increase in the indemnification receivable from the FDIC. (4) For the years ended December 31, 2017 , 2016 and 2015 the Company's tax rate for discontinued operations is 39% , 33% and 39% , respectively. Condensed Statements of Cash Flow — Financial Freedom Discontinued Operation (dollars in millions) Years Ended December 31, 2017 2016 2015 Net cash flows (used) in provided by operations $ (47.0 ) $ (40.0 ) $ 18.5 Net cash flows provided by investing activities 112.6 88.5 27.9 Condensed Statement of Cash Flows — Aerospace Discontinued Operations (dollars in millions) Years Ended December 31, 2017 2016 2015 Net cash flows provided by operations $ 32.4 $ 35.7 $ 942.1 Net cash flows provided by (used in) investing activities 10,812.7 (655.9 ) (749.6 ) Further, the Company recognized an impairment of its mortgage servicing rights liability of approximately $50 million , included in Other liabilities. Condensed Balance Sheet — Financial Freedom Discontinued Operation (dollars in millions) December 31, 2017 December 31, 2016 Total cash and deposits, all of which is restricted $ 7.7 $ 5.8 Net Loans (1) 272.8 374.0 Other assets (2) 36.6 68.3 Assets of discontinued operations $ 317.1 $ 448.1 Secured borrowings (1) $ 268.2 $ 366.4 Other liabilities (3) 232.3 569.4 Liabilities of discontinued operations $ 500.5 $ 935.8 (1) Net finance receivables include $267.2 million and $365.5 million of securitized balances at December 31, 2017 and December 31, 2016 , respectively, and $5.6 million and $8.5 million of additional draws awaiting securitization respectively. Secured borrowings relate to those receivables. (2) Amount includes servicing advances, servicer receivables and property and equipment, net of accumulated depreciation. The loans serviced for others total $ 14.1 billion and $ 15.6 billion for reverse mortgage loans as of December 31, 2017 and 2016. (3) Other liabilities include $137.8 million and $518.2 million of contingent liabilities, $79.5 million and $28.8 million of reverse mortgage servicing liabilities and $15.0 million and $22.3 million of other accrued liabilities at December 31, 2017 and December 31, 2016 , respectively. |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule Of Finance Receivables By Product | Loans, excluding those reflected as discontinued operations, consist of the following: Loans by Product (dollars in millions) December 31, 2017 December 31, 2016 Commercial Loans $ 20,892.1 $ 20,117.8 Direct financing leases and leveraged leases 2,685.8 2,852.9 Total commercial 23,577.9 22,970.7 Consumer Loans 5,536.0 6,565.2 Total loans 29,113.9 29,535.9 Loans held for sale 1,095.7 635.8 Loans held for investment and held for sale (1) $ 30,209.6 $ 30,171.7 (1) Assets held for sale on the Balance Sheet as of December 31, 2017 and December 31, 2016 includes loans and operating lease equipment primarily related to portfolios in Commercial Banking, Consumer Banking and the China portfolio in NSP. As discussed in subsequent tables, since the Company manages the credit risk and collection of loans held for sale consistently with its loans held for investment, the aggregate amount is presented in this table. |
Schedule Of Finance Receivables By Segment, Based On Obligor Location | The following table presents loans by segment, based on obligor location: Loans (dollars in millions) December 31, 2017 December 31, 2016 Domestic Foreign Total Domestic Foreign Total Commercial Banking $ 21,368.7 $ 1,790.6 $ 23,159.3 $ 20,440.7 $ 2,121.6 $ 22,562.3 Consumer Banking (1) 5,954.6 — 5,954.6 6,973.6 — 6,973.6 Total $ 27,323.3 $ 1,790.6 $ 29,113.9 $ 27,414.3 $ 2,121.6 $ 29,535.9 (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 balance and included in the Commercial loan balances in the tables throughout this note. |
Components Of Net Investment In Finance Receivables | The following table presents selected components of the net investment in loans: Components of Net Investment in Loans (dollars in millions) December 31, 2017 December 31, 2016 Unearned income $ (727.8 ) $ (727.1 ) Equipment residual values 522.6 583.4 Net unamortized premiums / (discounts) 3.7 (31.0 ) Accretable yield on PCI loans 1,063.7 1,261.4 Net unamortized deferred costs and (fees) (1) 68.7 55.8 Leveraged lease third party non-recourse debt payable (97.3 ) (109.7 ) (1) Balance relates to the Commercial Banking segment. |
Finance And Held-For-Sale Receivables - By Risk Rating | The following table summarizes commercial loans by the risk ratings that bank regulatory agencies utilize to classify credit exposure and which are consistent with indicators the Company monitors. The consumer loan risk profiles are different from commercial loans, and use loan-to-value ("LTV") ratios in rating the credit quality, and therefore are presented separately below. Commercial Loans and Held for Sale Loans — Risk Rating by Class / Segment (dollars in millions) Grade: Pass Special Mention Classified- accruing Classified- non-accrual PCI Loans Total December 31, 2017 Commercial Banking Commercial Finance $ 8,284.1 $ 640.9 $ 981.9 $ 134.8 $ 10.6 $ 10,052.3 Real Estate Finance 5,228.1 139.9 174.3 2.8 45.1 5,590.2 Business Capital 7,028.6 269.2 228.8 53.2 — 7,579.8 Rail 100.6 2.0 1.2 — — 103.8 Total Commercial Banking 20,641.4 1,052.0 1,386.2 190.8 55.7 23,326.1 Consumer Banking Other Consumer Banking (1) 378.5 5.9 31.9 — 2.2 418.5 Total Consumer Banking 378.5 5.9 31.9 — 2.2 418.5 Non-Strategic Portfolios 35.7 7.6 10.2 9.8 — 63.3 Total $ 21,055.6 $ 1,065.5 $ 1,428.3 $ 200.6 $ 57.9 $ 23,807.9 December 31, 2016 Commercial Banking Commercial Finance $ 8,184.7 $ 677.6 $ 1,181.7 $ 188.8 $ 42.7 $ 10,275.5 Real Estate Finance 5,191.4 168.7 115.6 20.4 70.5 5,566.6 Business Capital 6,238.7 422.0 271.7 41.7 — 6,974.1 Rail 88.7 14.1 0.9 — — 103.7 Total Commercial Banking 19,703.5 1,282.4 1,569.9 250.9 113.2 22,919.9 Consumer Banking Other Consumer Banking (2) 374.9 8.3 22.4 — 2.8 408.4 Total Consumer Banking 374.9 8.3 22.4 — 2.8 408.4 Non- Strategic Portfolios 143.7 36.9 19.1 10.3 — 210.0 Total $ 20,222.1 $ 1,327.6 $ 1,611.4 $ 261.2 $ 116.0 $ 23,538.3 (1) At December 31, 2017 Other Consumer Banking loans consisted of SBA loans. (2) At December 31, 2016 Other Consumer Banking loans consisted of SBA loans ($ 370.1 million ) and Private Banking loans ($ 38.3 million ). |
Schedule Of Consumer Loan LTV Distributions | Consumer Loan LTV Distributions (dollars in millions) Single Family Residential Reverse Mortgage (2) Covered Loans Non-covered Loans Non-covered loans Non-PCI PCI Non-PCI PCI Total Single Family Residential Covered Loans Non-PCI Non-PCI PCI Total Reverse Mortgages Total Consumer Loans December 31, 2017 Greater than 125% $ 2.7 $ 160.0 $ 7.7 $ — $ 170.4 $ — $ — $ — $ — $ 170.4 101% — 125% 6.4 291.5 4.4 — 302.3 — — — — 302.3 80% — 100% 77.4 566.2 137.3 — 780.9 — — — — 780.9 Less than 80% 1,306.1 878.1 2,089.7 7.7 4,281.6 — — — — 4,281.6 Not Applicable (1) — — 0.8 — 0.8 — — — — 0.8 Total $ 1,392.6 $ 1,895.8 $ 2,239.9 $ 7.7 $ 5,536.0 $ — $ — $ — $ — $ 5,536.0 December 31, 2016 Greater than 125% $ 2.2 $ 261.4 $ 12.3 $ — $ 275.9 $ 0.6 $ 8.8 $ 33.8 $ 43.2 $ 319.1 101% — 125% 4.7 443.7 13.6 — 462.0 1.2 12.7 7.9 21.8 483.8 80% — 100% 226.6 588.1 40.5 — 855.2 24.0 42.3 7.5 73.8 929.0 Less than 80% 1,515.6 872.4 1,713.1 9.2 4,110.3 405.4 304.9 9.8 720.1 4,830.4 Not Applicable (1) — — 2.9 — 2.9 — — — — 2.9 Total $ 1,749.1 $ 2,165.6 $ 1,782.4 $ 9.2 $ 5,706.3 $ 431.2 $ 368.7 $ 59.0 $ 858.9 $ 6,565.2 (1) Certain Consumer Loans do not have LTV's, including the Credit Card portfolio. The Credit Card portfolio was not significant at December 31, 2017 and 2016. (2) Reverse mortgage loans transferred to AHFS are excluded from the table above. As of December 31, 2017 these loans had a total carrying value of $ 861.0 million , of which $ 411.0 million were covered loans. |
Finance And Held For Sale Receivables - Delinquency Status | The table that follows presents portfolio delinquency status, regardless of accrual/non-accrual classification: Loans and Held for Sale Loans — Delinquency Status (dollars in millions) Past Due 30 — 59 Days Past Due 60 — 89 Days Past Due 90 Days or Greater Total Past Due Current (1) PCI Loans (2) Total December 31, 2017 Commercial Banking Commercial Finance $ 4.5 $ — $ 49.3 $ 53.8 $ 9,987.9 $ 10.6 $ 10,052.3 Real Estate Finance 8.7 — 4.1 12.8 5,532.3 45.1 5,590.2 Business Capital 172.2 33.4 19.1 224.7 7,355.1 — 7,579.8 Rail 3.9 1.4 0.8 6.1 97.7 — 103.8 Total Commercial Banking 189.3 34.8 73.3 297.4 22,973.0 55.7 23,326.1 Consumer Banking Legacy Consumer Mortgages 26.7 7.6 34.8 69.1 1,358.5 1,903.5 3,331.1 Other Consumer Banking 9.6 0.5 0.4 10.5 3,476.4 2.2 3,489.1 Total Consumer Banking 36.3 8.1 35.2 79.6 4,834.9 1,905.7 6,820.2 Non-Strategic Portfolios 1.8 7.7 9.4 18.9 44.4 — 63.3 Total $ 227.4 $ 50.6 $ 117.9 $ 395.9 $ 27,852.3 $ 1,961.4 $ 30,209.6 December 31, 2016 Commercial Banking Commercial Finance $ 21.4 $ — $ 17.6 $ 39.0 $ 10,193.8 $ 42.7 $ 10,275.5 Real Estate Finance 0.1 — — 0.1 5,496.0 70.5 5,566.6 Business Capital 143.6 42.4 16.3 202.3 6,771.8 — 6,974.1 Rail 5.9 0.6 2.3 8.8 94.9 — 103.7 Total Commercial Banking 171.0 43.0 36.2 250.2 22,556.5 113.2 22,919.9 Consumer Banking Legacy Consumer Mortgages 22.6 6.1 36.6 65.3 2,563.6 2,233.8 4,862.7 Other Consumer Banking 7.4 4.9 0.6 12.9 2,163.4 2.8 2,179.1 Total Consumer Banking 30.0 11.0 37.2 78.2 4,727.0 2,236.6 7,041.8 Non-Strategic Portfolios 3.0 1.1 7.0 11.1 198.9 — 210.0 Total $ 204.0 $ 55.1 $ 80.4 $ 339.5 $ 27,482.4 $ 2,349.8 $ 30,171.7 (1) Due to their nature, reverse mortgage loans are included in Current, as they do not have contractual payments due at a specified time. (2) PCI loans are written down at acquisition to their fair value using an estimate of cash flows deemed to be collectible. Accordingly, such loans are no longer classified as past due or non-accrual even though they may be contractually past due as we expect to fully collect the new carrying values of these loans. |
Finance Receivables On Non-accrual Status | The following table sets forth non-accrual loans, assets received in satisfaction of loans (repossessed assets and OREO) and loans 90 days or more past due and still accruing. Loans on Non-Accrual Status (dollars in millions) December 31, 2017 December 31, 2016 Held for Investment Held for Sale Total Held for Investment Held for Sale Total Commercial Banking Commercial Finance $ 134.8 $ — $ 134.8 $ 156.7 $ 32.1 $ 188.8 Real Estate Finance 2.8 — 2.8 20.4 — 20.4 Business Capital 53.2 — 53.2 41.7 — 41.7 Total Commercial Banking 190.8 — 190.8 218.8 32.1 250.9 Consumer Banking Legacy Consumer Mortgages 19.9 — 19.9 17.3 — 17.3 Other Consumer Banking 0.4 — 0.4 0.1 — 0.1 Total Consumer Banking 20.3 — 20.3 17.4 — 17.4 Non-Strategic Portfolios — 9.8 9.8 — 10.3 10.3 Total $ 211.1 $ 9.8 $ 220.9 $ 236.2 $ 42.4 $ 278.6 Repossessed assets and OREO 54.6 72.7 Total non-performing assets $ 275.5 $ 351.3 Commercial loans past due 90 days or more accruing $ 11.7 $ 7.2 Consumer loans past due 90 days or more accruing 20.2 24.8 Total Accruing loans past due 90 days or more $ 31.9 $ 32.0 |
Schedule Of Loans In Process Of Foreclosure | The table below summarizes the residential mortgage loans in the process of foreclosure and OREO: (dollars in millions) December 31, 2017 December 31, 2016 PCI $ 133.7 $ 201.7 Non-PCI 140.9 106.3 Loans in process of foreclosure $ 274.6 $ 308.0 OREO $ 52.1 $ 69.9 |
Impaired Loans | The following table contains information about impaired loans and the related allowance for loan losses by class, exclusive of loans that were identified as impaired at the Acquisition Date for which the Company is applying the income recognition and disclosure guidance in ASC 310-30 ( Loans and Debt Securities Acquired with Deteriorated Credit Quality ), which are disclosed further below in this note. Impaired loans exclude PCI loans. Impaired Loans (dollars in millions) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment (3) December 31, 2017 With no related allowance recorded: Commercial Banking Commercial Finance $ 51.9 $ 72.7 $ — $ 59.9 Business Capital 11.7 13.4 — 5.7 Real Estate Finance — — — 0.4 With an allowance recorded: Commercial Banking Commercial Finance 95.9 96.1 21.3 136.6 Business Capital 10.5 10.5 4.3 14.2 Real Estate Finance 2.7 2.8 0.4 5.6 Total Impaired Loans (1) 172.7 195.5 26.0 222.4 Total Loans Impaired at Acquisition Date (2) 1,961.4 2,870.2 19.1 2,168.8 Total $ 2,134.1 $ 3,065.7 $ 45.1 $ 2,391.2 December 31, 2016 With no related allowance recorded: Commercial Banking Commercial Finance $ 54.3 $ 72.2 $ — $ 29.5 Business Capital 0.5 1.8 — 5.1 Real Estate Finance 0.7 0.7 — 1.3 With an allowance recorded: Commercial Banking Commercial Finance 143.0 146.2 25.5 132.1 Business Capital 6.6 6.6 4.2 8.2 Real Estate Finance 16.7 16.8 4.0 5.2 Total Impaired Loans (1) 221.8 244.3 33.7 181.4 Total Loans Impaired at Acquisition Date (2) 2,349.8 3,440.7 13.6 2,504.4 Total $ 2,571.6 $ 3,685.0 $ 47.3 $ 2,685.8 (1) Interest income recorded for the years ended December 31, 2017 and December 31, 2016 while the loans were impaired were $2.4 million and $1.6 million , of which $0.0 million and $0.6 million was interest recognized using cash-basis method of accounting for each year, respectively. (2) Details of loans that were identified as impaired at the Acquisition Date are presented under Loans Acquired with Deteriorated Credit Quality. (3) Average recorded investment for the years ended December 31, 2017 and 2016. |
Purchased Credit Impaired Loans With Deteriorated Credit Quality | Purchased Credit Impaired Loans (dollars in millions) December 31, 2017 December 31, 2016 Unpaid Principal Balance Carrying Value Allowance for Loan Losses Unpaid Principal Balance Carrying Value Allowance for Loan Losses Commercial Banking Commercial Finance $ 16.4 $ 10.6 $ 0.7 $ 70.0 $ 42.7 $ 2.4 Real Estate Finance 60.1 45.1 7.0 108.1 70.5 4.9 Consumer Banking Other Consumer Banking 3.0 2.2 — 3.7 2.8 — Legacy Consumer Mortgages 2,790.7 1,903.5 11.4 3,258.9 2,233.8 6.3 $ 2,870.2 $ 1,961.4 $ 19.1 $ 3,440.7 $ 2,349.8 $ 13.6 |
Summary Of Commercial PCI Loans | The following table summarizes commercial PCI loans, which are monitored for credit quality based on internal risk classifications. See previous table Consumer Loan LTV Distributions for credit quality metrics on consumer PCI loans. December 31, 2017 December 31, 2016 (dollars in millions) Non-criticized Criticized Total Non-criticized Criticized Total Commercial Finance $ — $ 10.6 $ 10.6 $ 5.4 $ 37.3 $ 42.7 Real Estate Finance 21.8 23.3 45.1 35.6 34.9 70.5 Total $ 21.8 $ 33.9 $ 55.7 $ 41.0 $ 72.2 $ 113.2 |
Schedule Of Changes To The Accretable Yield For PCI Loans | Changes in the Accretable Yield for PCI Loans (dollars in millions) Years Ended December 31, 2017 2016 2015 Balance at beginning of the year (1) $ 1,261.4 $ 1,299.1 $ 1,254.8 Accretion into interest income (204.6 ) (208.3 ) (76.2 ) Reclassification from non-accretable difference 38.5 213.7 133.2 Disposals and Other (31.6 ) (43.1 ) (12.7 ) Balance at end of the year $ 1,063.7 $ 1,261.4 $ 1,299.1 (1) For year ended December 31, 2015, the beginning balance is as of August 3, 2015, the acquisition date of OneWest Bank. |
Allowance For Loan Losses (Tabl
Allowance For Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Allowance For Loan Losses [Abstract] | |
Schedule Of Allowance For Loan Losses And Recorded Investment In Finance Receivables | Allowance for Loan Losses and Recorded Investment in Loans (dollars in millions) Commercial Banking Consumer Banking Total Year Ended December 31, 2017 Balance — December 31, 2016 $ 408.4 $ 24.2 $ 432.6 Provision for credit losses 88.7 25.9 114.6 Other (1) (0.8 ) (0.1 ) (0.9 ) Gross charge-offs (2) (115.2 ) (22.5 ) (137.7 ) Recoveries 21.1 1.4 22.5 Balance — December 31, 2017 $ 402.2 $ 28.9 $ 431.1 Allowance balance at December 31, 2017 Loans individually evaluated for impairment $ 26.0 $ — $ 26.0 Loans collectively evaluated for impairment 368.5 17.5 386.0 Loans acquired with deteriorated credit quality (3) 7.7 11.4 19.1 Allowance for loan losses $ 402.2 $ 28.9 $ 431.1 Other reserves (1) $ 44.5 $ — $ 44.5 Finance receivables at December 31, 2017 Loans individually evaluated for impairment $ 172.7 $ — $ 172.7 Loans collectively evaluated for impairment 22,930.9 4,048.9 26,979.8 Loans acquired with deteriorated credit quality (3) 55.7 1,905.7 1,961.4 Ending balance $ 23,159.3 $ 5,954.6 $ 29,113.9 Percent of loans to total loans 79.5 % 20.5 % 100 % Year Ended December 31, 2016 Balance — December 31, 2015 $ 336.8 $ 10.2 $ 347.0 Provision for credit losses 183.0 11.7 194.7 Other (1) 0.2 2.0 2.2 Gross charge-offs (2) (133.8 ) (2.8 ) (136.6 ) Recoveries 22.2 3.1 25.3 Balance — December 31, 2016 $ 408.4 $ 24.2 $ 432.6 Allowance balance at December 31, 2016 Loans individually evaluated for impairment $ 33.7 $ — $ 33.7 Loans collectively evaluated for impairment 367.4 17.9 385.3 Loans acquired with deteriorated credit quality (3) 7.3 6.3 13.6 Allowance for loan losses $ 408.4 $ 24.2 $ 432.6 Other reserves (1) $ 43.6 $ 0.1 $ 43.7 Finance receivables at December 31, 2016 Loans individually evaluated for impairment $ 221.8 $ — $ 221.8 Loans collectively evaluated for impairment 22,227.3 4,737.0 26,964.3 Loans acquired with deteriorated credit quality (3) 113.2 2,236.6 2,349.8 Ending balance $ 22,562.3 $ 6,973.6 $ 29,535.9 Percentage of loans to total loans 76.4 % 23.6 % 100 % (1) "Other reserves" represents credit loss reserves for unfunded lending commitments, letters of credit and for deferred purchase agreements, all of which is recorded in Other liabilities. "Other" also includes allowance for loan losses associated with loan sales and foreign currency translations. (2) Gross charge-offs of amounts specifically reserved in prior periods included $45.9 million and $35.8 million charged directly to the Allowance for loan losses for the years ended December 31, 2017 and December 31, 2016 , respectively. These charge offs related to Commercial Banking for both years. (3) Represents loans considered impaired as part of the OneWest transaction and are accounted for under the guidance in ASC 310-30 (Loans and Debt Securities Acquired with Deteriorated Credit Quality). |
Indemnification Assets (Tables)
Indemnification Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Carrying Value Of Recognized Indemnification Assets And Related Receivables/Payables | Indemnification Assets — IndyMac Transaction (dollars in millions) Years Ended December 31, 2017 2016 Loan indemnification (1) $ 113.5 $ 223.0 Reverse mortgage indemnification (2) — 10.4 Agency claims indemnification (3) 28.9 108.0 Total $ 142.4 $ 341.4 Receivable with the FDIC $ 9.2 $ 12.7 (1) As of December 31, 2017 , the carrying value of the loan indemnification decreased by $109.5 million from December 31, 2016 , which comprised of $ 53.1 million in claim submissions filed with the FDIC during the period and $ 56.4 million in other (yield and provision for credit losses adjustments). (2) During the year ended December 31, 2017, the reverse mortgage indemnification was impaired by its full value within other non-interest income in connection with the agreement to sell the reverse mortgage portfolio as part of the Financial Freedom Transaction. (3) During the year ended December 31, 2017, the Company and the FDIC resolved the selling and servicing-related obligations of IndyMac for certain reverse mortgage loans with Fannie Mae. In connection with the settlement, the Company released the FDIC from its indemnification obligation to CIT with respect to the Fannie Mae settled loans, which reduced the indemnification receivable by $ 77 million . |
Submission Of Qualifying Losses For Reimbursement From FDIC | The following table summarizes the submission of qualifying losses (net of recoveries) for reimbursement from the FDIC since inception of the loss share agreement as of December 31, 2017 and 2016 , respectively: Submission of Qualifying Losses for Reimbursement (dollars in millions) December 31, 2017 December 31, 2016 Unpaid principal balance $ 3,196.5 $ 3,832.1 Cumulative losses incurred 3,800.6 3,727.8 Cumulative claims 3,794.7 3,722.9 Cumulative reimbursement 939.9 893.7 |
Operating Lease Equipment (Tabl
Operating Lease Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases, Operating [Abstract] | |
Book Value of Operating Lease Equipment | The following table provides the net book value (net of accumulated depreciation of $1.0 billion at December 31, 2017 and $0.9 billion at December 31, 2016 ) of operating lease equipment, by equipment type. Operating Lease Equipment (dollars in millions) December 31, 2017 December 31, 2016 Railcars and locomotives $ 6,260.5 $ 7,116.5 Other equipment 478.4 369.6 Total (1) $ 6,738.9 $ 7,486.1 (1) Includes equipment off-lease of $488.2 million and $823.5 million at December 31, 2017 and 2016 , respectively, primarily consisting of rail assets. |
Schedule Of Future Minimum Lease Rentals Due On Non-Cancelable Operating Leases | The following table presents future minimum lease rentals due on non-cancellable operating leases at December 31, 2017. Excluded from this table are variable rentals calculated on asset usage levels, re-leasing rentals, and expected sales proceeds from remarketing equipment at lease expiration, all of which are components of operating lease profitability. Minimum Lease Rentals Due (dollars in millions) Years Ended December 31, 2018 $ 675.7 2019 487.2 2020 328.8 2021 198.6 2022 107.9 Thereafter 73.1 Total $ 1,871.3 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule Of Investment Securities | Investment Securities (dollars in millions) December 31, 2017 December 31, 2016 Available-for-sale securities Debt securities $ 6,123.6 $ 3,674.1 Equity securities 44.7 34.1 Held-to-maturity securities Debt securities (1) — 243.0 Securities carried at fair value with changes recorded in net income Debt securities 0.4 283.5 Non-marketable investments (2) 301.2 256.4 Total investment securities $ 6,469.9 $ 4,491.1 (1) Recorded at amortized cost. (2) Non-marketable investments include securities of the FRB and FHLB carried at cost of $258.9 million at December 31, 2017 and $239.7 million at December 31, 2016 . The remaining non-marketable investments include ownership interests greater than 3% in limited partnership investments that are accounted for under the equity method, other investments carried at cost, which include qualified Community Reinvestment Act (CRA) investments, equity fund holdings and shares issued by customers during loan work out situations or as part of an original loan investment, totaling $42.3 million and $16.7 million at December 31, 2017 and December 31, 2016 , respectively. |
Schedule Of Interest And Dividend Income | The following table presents interest and dividends on interest bearing deposits and investments: Interest and Dividend Income (dollars in millions) Years Ended December 31, 2017 2016 2015 Interest income — investments / reverse repos $ 128.9 $ 82.1 $ 43.7 Interest income — interest bearing deposits 57.7 33.1 17.1 Dividends — investments 10.9 16.7 10.4 Total interest and dividends $ 197.5 $ 131.9 $ 71.2 |
Amortized Cost And Fair Value Of Securities Available-For-Sale | The following table presents amortized cost and fair value of securities AFS and securities held-to-maturity ("HTM"). Amortized Cost and Fair Value (dollars in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2017 Debt securities AFS Mortgage-backed Securities U.S. government agency securities $ 5,010.2 $ 2.1 $ (62.1 ) $ 4,950.2 Non-agency securities 297.3 21.7 (0.5 ) 318.5 U.S. government agency obligations 25.0 — (0.2 ) 24.8 U.S. Treasury securities 297.7 0.2 (0.2 ) 297.7 Supranational securities 449.8 — (0.3 ) 449.5 State & Municipal Bonds 16.2 — (0.4 ) 15.8 Corporate Bonds - Foreign 65.7 1.4 — 67.1 Total debt securities AFS 6,161.9 25.4 (63.7 ) 6,123.6 Equity securities AFS 45.8 — (1.1 ) 44.7 Total securities AFS $ 6,207.7 $ 25.4 $ (64.8 ) $ 6,168.3 December 31, 2016 Debt securities AFS Mortgage-backed Securities U.S. government agency securities $ 2,073.6 $ 1.6 $ (32.3 ) $ 2,042.9 Non-agency securities 471.7 15.6 (1.8 ) 485.5 U.S. government agency obligations 649.9 — (3.9 ) 646.0 U.S. Treasury securities 299.9 — (0.4 ) 299.5 Supranational securities 200.2 — — 200.2 Total debt securities AFS 3,695.3 17.2 (38.4 ) 3,674.1 Equity securities AFS 35.0 — (0.9 ) 34.1 Total securities AFS 3,730.3 17.2 (39.3 ) 3,708.2 Debt Securities HTM Mortgage-backed securities U.S. government agency securities 110.0 0.7 (3.3 ) 107.4 State and municipal 27.7 — (0.5 ) 27.2 Foreign government 2.4 — — 2.4 Corporate — foreign 102.9 6.2 — 109.1 Total debt securities HTM 243.0 6.9 (3.8 ) 246.1 Total $ 3,973.3 $ 24.1 $ (43.1 ) $ 3,954.3 |
Amortized Cost And Fair Value Of Securities Held-To-Maturity | The following table presents amortized cost and fair value of securities AFS and securities held-to-maturity ("HTM"). Amortized Cost and Fair Value (dollars in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2017 Debt securities AFS Mortgage-backed Securities U.S. government agency securities $ 5,010.2 $ 2.1 $ (62.1 ) $ 4,950.2 Non-agency securities 297.3 21.7 (0.5 ) 318.5 U.S. government agency obligations 25.0 — (0.2 ) 24.8 U.S. Treasury securities 297.7 0.2 (0.2 ) 297.7 Supranational securities 449.8 — (0.3 ) 449.5 State & Municipal Bonds 16.2 — (0.4 ) 15.8 Corporate Bonds - Foreign 65.7 1.4 — 67.1 Total debt securities AFS 6,161.9 25.4 (63.7 ) 6,123.6 Equity securities AFS 45.8 — (1.1 ) 44.7 Total securities AFS $ 6,207.7 $ 25.4 $ (64.8 ) $ 6,168.3 December 31, 2016 Debt securities AFS Mortgage-backed Securities U.S. government agency securities $ 2,073.6 $ 1.6 $ (32.3 ) $ 2,042.9 Non-agency securities 471.7 15.6 (1.8 ) 485.5 U.S. government agency obligations 649.9 — (3.9 ) 646.0 U.S. Treasury securities 299.9 — (0.4 ) 299.5 Supranational securities 200.2 — — 200.2 Total debt securities AFS 3,695.3 17.2 (38.4 ) 3,674.1 Equity securities AFS 35.0 — (0.9 ) 34.1 Total securities AFS 3,730.3 17.2 (39.3 ) 3,708.2 Debt Securities HTM Mortgage-backed securities U.S. government agency securities 110.0 0.7 (3.3 ) 107.4 State and municipal 27.7 — (0.5 ) 27.2 Foreign government 2.4 — — 2.4 Corporate — foreign 102.9 6.2 — 109.1 Total debt securities HTM 243.0 6.9 (3.8 ) 246.1 Total $ 3,973.3 $ 24.1 $ (43.1 ) $ 3,954.3 |
Amortized Cost And Fair Value Of Debt Securities By Contractual Maturity Dates | The following table presents the debt securities AFS by contractual maturity dates: Maturities (dollars in millions) December 31, 2017 Amortized Cost Fair Value Weighted Average Yields Mortgage-backed securities - U.S. government agency securities After 5 but within 10 years $ 198.7 $ 196.9 2.05 % Due after 10 years 4,811.5 4,753.3 2.50 % Total 5,010.2 4,950.2 2.48 % Mortgage-backed securities - non agency securities After 1 but within 5 years 12.5 12.5 5.16 % After 5 but within 10 years 6.9 7.4 4.56 % Due after 10 years 277.9 298.6 5.72 % Total 297.3 318.5 5.67 % U.S. government agency obligations After 1 but within 5 years 25.0 24.8 2.14 % Total 25.0 24.8 2.14 % U.S. Treasury Securities Due within 1 year 199.3 199.1 1.19 % After 5 but within 10 years 98.4 98.6 2.44 % Total 297.7 297.7 1.60 % Supranational securities Due within 1 year 399.8 399.8 1.19 % After 1 but within 5 years 50.0 49.7 2.02 % Total 449.8 449.5 1.28 % State and Municipal Bonds Due within 1 year 0.1 0.1 2.36 % After 1 but within 5 years 0.1 0.1 2.56 % After 5 but within 10 years 0.3 0.3 2.70 % Due after 10 years 15.7 15.3 2.35 % Total 16.2 15.8 2.36 % Corporate Bonds - Foreign After 1 but within 5 years 65.7 67.1 6.12 % Total 65.7 67.1 6.12 % Total debt securities available-for-sale $ 6,161.9 $ 6,123.6 2.54 % |
Schedule Of Securities - Estimated Unrealized Losses | The following table summarizes the gross unrealized losses and estimated fair value of AFS securities and HTM securities aggregated by investment category and length of time that the securities have been in a continuous unrealized loss position. Gross Unrealized Losses (dollars in millions) December 31, 2017 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 agency securities $ 3,492.2 $ (30.9 ) $ 1,151.4 $ (31.2 ) Non-agency securities 2.1 — 0.4 (0.5 ) U.S. government agency obligations 24.8 (0.2 ) — — U.S. Treasury Securities 199.1 (0.2 ) — — State and Municipal Bonds — — 13.6 (0.4 ) Supranational securities 349.5 (0.3 ) — — Total debt securities AFS 4,067.7 (31.6 ) 1,165.4 (32.1 ) Equity securities AFS 0.1 (0.2 ) 44.5 (0.9 ) Total securities available-for-sale $ 4,067.8 $ (31.8 ) $ 1,209.9 $ (33.0 ) December 31, 2016 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 agency securities $ 1,589.6 $ (31.8 ) $ 13.8 $ (0.5 ) Non-agency securities 56.5 (1.4 ) 15.8 (0.4 ) U.S. government agency obligations 546.1 (3.9 ) — — U.S. Treasury Securities 299.5 (0.4 ) — — Total debt securities AFS 2,491.7 (37.5 ) 29.6 (0.9 ) Equity securities AFS 34.1 (0.9 ) — — Total securities available-for-sale 2,525.8 (38.4 ) 29.6 (0.9 ) Debt securities HTM Mortgage-backed securities U.S. government agency securities 68.2 (1.7 ) 26.7 (1.6 ) State and municipal 3.8 (0.1 ) 22.4 (0.4 ) Total securities held-to-maturity 72.0 (1.8 ) 49.1 (2.0 ) Total $ 2,597.8 $ (40.2 ) $ 78.7 $ (2.9 ) |
Changes In Accretable Yield For Purchased Credit-Impaired Securities | Changes in Accretable Yield for PCI Securities (dollars in millions) Years Ended December 31, 2017 2016 2015 Beginning Balance (1) $ 165.0 $ 189.0 $ 204.4 Accretion into interest income (23.4 ) (29.2 ) (13.5 ) Reclassifications from non-accretable difference due to increasing cash flows 2.4 4.7 — Reclassifications to non-accretable difference due to decreasing cash flows (2.2 ) 0.5 (1.7 ) Disposals (40.1 ) — (0.2 ) Balance at year end $ 101.7 $ 165.0 $ 189.0 (1) For year ended December 31, 2015, the beginning balance is as of August 3, 2015, the acquisition date of OneWest Bank. |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Components Of Other Assets | The following table presents the components of other assets. Other Assets (dollars in millions) December 31, 2017 December 31, 2016 Tax credit investments and investments in unconsolidated subsidiaries (1) $ 247.6 $ 220.2 Counterparty receivables 241.3 437.3 Current and deferred federal and state tax assets 205.2 201.3 Property, furniture and fixtures 173.9 191.1 Indemnification assets 142.4 341.4 Intangible assets 113.0 140.7 Other (2)(3) 472.1 585.0 Total other assets $ 1,595.5 $ 2,117.0 (1) Included in this balance are LIHTC of $182.8 million and $151.3 million as of December 31, 2017 , and December 31, 2016 , respectively, that provide tax benefits to investors in the form of tax deductions from operating losses and tax credits. As a limited partner, the Company has no significant influence over the operations. During 2017 , the Company recorded a cumulative earnings adjustment due to its accounting policy change for LIHTC from the equity method to the proportional amortization method as the preferable method. Refer to Note 1 - Business and Summary of Significant Accounting Policy for additional information. The Company had recognized a pre-tax loss of $12.1 million and no post-tax amortization expense during 2016. In addition, during 2017 and 2016, the Company recognized total tax benefits of $29.6 million and $20.6 million , respectively, which included tax credits of $22.6 million and $15.9 million recorded in income taxes. During 2017, the Company recorded $50.8 million in tax provision under the proportional amortization method. The Company is periodically required to provide additional financial support during the investment period. The Company's liability for these unfunded commitments was $66.6 million and $62.3 million at December 31, 2017 , and December 31, 2016 , respectively. See Note 10 — Borrowings. (2) Other includes executive retirement plan and deferred compensation, other deferred charges, prepaid expenses, accrued interest and dividends, and other miscellaneous assets. (3) Other also includes servicing advances. As of December 31, 2017 and December 31, 2016 , the loans serviced for others total $34.1 million and $55.1 million for single family mortgage loans, respectively. |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
Schedule Of Rates And Maturities Of Deposits | The following table provides detail on the types, rates and maturities of deposits. Deposits — Rates and Maturities (dollars in millions) December 31, 2017 Amount Rate Deposits — no stated maturity Non-interest-bearing checking $ 1,352.0 —% Interest-bearing checking 2,653.3 0.59% Money market 5,075.5 0.85% Savings 5,986.7 1.12% Other 153.7 NM Total checking and savings deposits 15,221.2 Certificates of deposit, remaining contractual maturity: Within one year 7,832.5 1.27% One to two years 3,069.7 1.94% Two to three years 1,619.8 2.23% Three to four years 633.2 2.40% Four to five years 167.1 2.35% Over five years 1,021.5 3.32% Total certificates of deposit 14,343.8 1.73% Purchase accounting adjustments 4.3 Total Deposits $ 29,569.3 NM Not meaningful — includes certain deposits such as escrow accounts, security deposits, and other similar accounts. |
Schedule Of Certificates Of Deposit $100 Thousand Or More | The following table presents the maturity profile of other time deposits with a denomination of $100,000 or more. Certificates of Deposit $100,000 or More (dollars in millions) December 31, 2017 December 31, 2016 U.S. certificates of deposits: Three months or less $ 1,414.6 $ 1,725.4 After three months through six months 1,519.0 1,902.6 After six months through twelve months 2,825.3 2,907.7 After twelve months 5,713.4 7,013.4 Total $ 11,472.3 $ 13,549.1 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule Of Long-Term Borrowings | The following table presents the principal amounts by maturity date. Maturity Date Rate (%) Date of Issuance Par Value February 2019 5.500 % February 2012 $ 383.0 February 2019 3.875 % February 2014 1,000.0 May 2020 5.375 % May 2012 435.6 August 2022 5.000 % August 2012 1,150.0 August 2023 5.000 % August 2013 750.0 Weighted average rate and total 4.793 % $ 3,718.6 The following table presents the carrying value of outstanding borrowings. Borrowings (dollars in millions) December 31, 2017 December 31, 2016 CIT Group Inc. Subsidiaries Total Total Senior Unsecured $ 3,737.5 $ — $ 3,737.5 $ 10,599.0 Secured borrowings: Structured financings — 1,541.4 1,541.4 1,925.7 FHLB advances — 3,695.5 3,695.5 2,410.8 Total Borrowings $ 3,737.5 $ 5,236.9 $ 8,974.4 $ 14,935.5 |
Schedule Of Contractual Maturities | The following table summarizes contractual maturities of borrowings outstanding, which excludes PAA discounts, original issue discounts, and FSA discounts. Contractual Maturities — Borrowings as of December 31, 2017 (dollars in millions) 2018 2019 2020 2021 2022 Thereafter Contractual Maturities Senior unsecured notes $ — $ 1,383.0 $ 435.6 $ — $ 1,150.0 $ 801.4 $ 3,770.0 Structured financings 226.3 770.7 70.5 63.4 58.0 360.0 1,548.9 FHLB advances 1,400.0 1,145.5 1,150.0 — — — 3,695.5 $ 1,626.3 $ 3,299.2 $ 1,656.1 $ 63.4 $ 1,208.0 $ 1,161.4 $ 9,014.4 |
Schedule Of FHLB Advances | The following table includes the total carrying value of FHLB Advances and pledged assets (1) . FHLB Advances with Pledged Assets (1) Summary (dollars in millions) December 31, 2017 December 31, 2016 FHLB Advances Pledged Assets (1) FHLB Advances Pledged Assets (1) Total $ 3,695.5 $ 6,154.1 $ 2,410.8 $ 6,389.7 |
Schedule Of Secured Borrowings And Pledged Assets Summary | Set forth in the following table are amounts primarily related to structured financings of and assets owned by consolidated VIEs. Creditors of these VIEs received ownership and/or security interests in the assets. These entities are intended to be bankruptcy remote so that such assets are not available to creditors of CIT or any affiliates of CIT until and unless the related secured borrowings have been fully discharged. These transactions do not meet accounting requirements for sales treatment and are recorded as secured borrowings. Structured financings as of December 31, 2017 , had a weighted average rate of 3.75% , which ranged from 0.55% to 5.5% . Structured Financings and Pledged Assets Summary (dollars in millions) December 31, 2017 December 31, 2016 Secured Borrowing Pledged Assets Secured Borrowing Pledged Assets Business Capital $ 768.8 $ 2,838.6 $ 949.8 $ 2,608.0 Rail (1)(2) 772.6 1,272.0 860.1 1,327.5 Commercial Finance — — — 0.2 Subtotal — Commercial Banking 1,541.4 4,110.6 1,809.9 3,935.7 Non-Strategic Portfolios — — 115.8 212.6 Total $ 1,541.4 $ 4,110.6 $ 1,925.7 $ 4,148.3 (1) At December 31, 2017 , the TRS Transactions related borrowings and pledged assets, respectively, of $493.0 million and $818.6 million were included in Rail. The TRS Transactions are described in Note 11 — Derivative Financial Instruments. (2) At December 31, 2017 , secured borrowings and pledged assets, respectively, of $250.3 million and $421.9 million were related to the pending sale of our European Rail business, NACCO, and will be transferred to the buyer upon sale of that business. |
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 Carrying Value (dollars in millions) December 31, 2017 December 31, 2016 Securities Partnership Investment Securities Partnership Investment Agency securities $ 4,950.2 $ — $ 2,152.9 $ — Non agency securities — Other servicer 318.8 — 769.0 — Tax credit equity investments — 198.8 — 167.7 Equity investments — 38.6 — 11.4 Total Assets $ 5,269.0 $ 237.4 $ 2,921.9 $ 179.1 Commitments to tax credit investments $ — $ 66.6 $ — $ 62.3 Total Liabilities $ — $ 66.6 $ — $ 62.3 Maximum loss exposure (1) $ 5,269.0 $ 237.4 $ 2,921.9 $ 179.1 (1) Maximum loss exposure to the unconsolidated VIEs excludes the liability for representations and warranties, corporate guarantees and also excludes servicing advances. |
Derivative Financial Instrume48
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair And Notional Values Of Derivative Financial Instruments | The following table presents fair values and notional values of derivative financial instruments: Fair and Notional Values of Derivative Financial Instruments (1) (dollars in millions) December 31, 2017 December 31, 2016 Notional Amount Asset Fair Value Liability Fair Value Notional Amount Asset Fair Value Liability Fair Value Qualifying Hedges Foreign currency forward contracts — net investment hedges $ 977.3 $ 0.2 $ (18.7 ) $ 817.9 $ 16.9 $ — Total Qualifying Hedges 977.3 0.2 (18.7 ) 817.9 16.9 — Non-Qualifying Hedges Interest rate swaps (2) 7,112.0 60.8 (38.6 ) 5,309.2 63.0 (50.1 ) Written options 2,744.3 — (0.7 ) 2,626.5 0.1 (1.0 ) Purchased options 2,571.5 0.7 — 2,129.6 1.0 (0.1 ) Foreign currency forward contracts 1,375.5 6.9 (14.9 ) 1,329.8 30.2 (6.0 ) Total Return Swap (TRS) 182.4 — (14.1 ) 587.5 — (11.3 ) Equity Warrants 0.8 — — 1.0 0.2 — Interest Rate Lock Commitments 7.7 0.1 — 20.7 0.1 (0.1 ) Forward sale commitments on agency MBS 8.0 — — 39.0 0.1 — Credit derivatives 285.1 — — 267.6 — (0.2 ) Total Non-qualifying Hedges 14,287.3 68.5 (68.3 ) 12,310.9 94.7 (68.8 ) Total Hedges $ 15,264.6 $ 68.7 $ (87.0 ) $ 13,128.8 $ 111.6 $ (68.8 ) (1) Presented on a gross basis. (2) Fair value balances include accrued interest. |
Offsetting of Derivative Assets | Offsetting of Derivative Assets and Liabilities (dollars in millions) (1) Gross Amounts not offset in the Consolidated Balance Sheet Gross Amount of Recognized Assets (Liabilities) Gross Amount Offset in the Consolidated Balance Sheet Net Amount Presented in the Consolidated Balance Sheet Derivative Financial Instruments (2) Cash Collateral Pledged / (Received) (2)(3) Net Amount December 31, 2017 Derivative assets $ 68.7 $ — $ 68.7 $ (18.7 ) $ (8.4 ) $ 41.6 Derivative liabilities (87.0 ) — (87.0 ) 18.7 23.0 (45.3 ) December 31, 2016 Derivative assets $ 111.6 $ — $ 111.6 $ (30.9 ) $ (48.7 ) $ 32.0 Derivative liabilities (68.8 ) — (68.8 ) 30.9 5.0 (32.9 ) (1) Due to a change in clearinghouse rules, the Company accounts for swap contracts cleared by the Chicago Mercantile Exchange (“CME”) as “settled-to-market” effective January 2017. 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. The Company’s swap contracts cleared by LCH Clearnet (“LCH”) continue to be accounted for as “collateralized-to-market” and variation margin balances are characterized as collateral against derivative exposures. At December 31, 2017 , gross amount of recognized assets and liabilities were lower by $5.4 million and 10.4 million , respectively. (2) 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 ("Derivative Financial Instruments") 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. In conjunction with the ISDA agreements, 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. (3) Collateral pledged or received is included in Other assets or Other liabilities, respectively. |
Offsetting Of Derivative Liabilities | Offsetting of Derivative Assets and Liabilities (dollars in millions) (1) Gross Amounts not offset in the Consolidated Balance Sheet Gross Amount of Recognized Assets (Liabilities) Gross Amount Offset in the Consolidated Balance Sheet Net Amount Presented in the Consolidated Balance Sheet Derivative Financial Instruments (2) Cash Collateral Pledged / (Received) (2)(3) Net Amount December 31, 2017 Derivative assets $ 68.7 $ — $ 68.7 $ (18.7 ) $ (8.4 ) $ 41.6 Derivative liabilities (87.0 ) — (87.0 ) 18.7 23.0 (45.3 ) December 31, 2016 Derivative assets $ 111.6 $ — $ 111.6 $ (30.9 ) $ (48.7 ) $ 32.0 Derivative liabilities (68.8 ) — (68.8 ) 30.9 5.0 (32.9 ) (1) Due to a change in clearinghouse rules, the Company accounts for swap contracts cleared by the Chicago Mercantile Exchange (“CME”) as “settled-to-market” effective January 2017. 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. The Company’s swap contracts cleared by LCH Clearnet (“LCH”) continue to be accounted for as “collateralized-to-market” and variation margin balances are characterized as collateral against derivative exposures. At December 31, 2017 , gross amount of recognized assets and liabilities were lower by $5.4 million and 10.4 million , respectively. (2) 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 ("Derivative Financial Instruments") 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. In conjunction with the ISDA agreements, 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. (3) Collateral pledged or received is included in Other assets or Other liabilities, respectively. |
Derivative Instrument Gains And Losses | The following table presents the impact of derivatives on the statements of income. Derivative Instrument Gains and Losses (dollars in millions) Years Ended December 31, Derivative Instruments Gain / (Loss) Recognized 2017 2016 2015 Non Qualifying Hedges Interest rate swaps Other non-interest income $ 8.5 $ 7.9 $ 4.6 Interest rate options Other non-interest income 0.4 0.6 1.6 Foreign currency forward contracts Other non-interest income (34.2 ) 26.2 116.5 Equity warrants Other non-interest income (0.2 ) (0.2 ) 0.2 Total Return Swaps (TRS) Other non-interest income (2.8 ) 43.6 (30.4 ) Interest Rate Lock Commitments Other non-interest income 0.1 (0.2 ) — Forward sale commitments on agency MBS Other non-interest income (0.4 ) 1.1 — Risk Participation Agreements Other non-interest income (0.1 ) 1.8 — Total Non-qualifying Hedges (28.7 ) 80.8 92.5 Total derivatives-income statement impact $ (28.7 ) $ 80.8 $ 92.5 |
Changes In AOCI Relating To Derivatives | The following table presents the changes in AOCI relating to derivatives: Changes in AOCI Relating to Derivatives (dollars in millions) Contract Type Derivatives — effective portion reclassified from AOCI to income Total income statement impact Derivatives — effective portion recorded in OCI Total change in OCI for period Year Ended December 31, 2017 Foreign currency forward contracts — net investment hedges $ 13.4 $ 13.4 $ (74.7 ) $ (88.1 ) Total $ 13.4 $ 13.4 $ (74.7 ) $ (88.1 ) Year Ended December 31, 2016 Foreign currency forward contracts — net investment hedges $ 1.8 $ 1.8 $ 2.7 $ 0.9 Total $ 1.8 $ 1.8 $ 2.7 $ 0.9 Year Ended December 31, 2015 Foreign currency forward contracts — net investment hedges $ 33.8 $ 33.8 $ 128.4 $ 94.6 Total $ 33.8 $ 33.8 $ 128.4 $ 94.6 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Components Of Other Liabilities | The following table presents components of other liabilities: December 31, 2017 December 31, 2016 Accrued expenses and accounts payable $ 584.8 $ 580.4 Current and deferred taxes payable 204.3 250.6 Fair value of derivative financial instruments, and other 87.5 69.0 Accrued interest payable 86.6 181.2 Other (1) 473.9 816.4 Total other liabilities $ 1,437.1 $ 1,897.6 (1) Other consists of unsettled investment security purchased of $0 million and $201.2 million as of December 31, 2017 and 2016 , respectively, contingent performance liability, and other miscellaneous liabilities. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
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, 2017 Assets Debt Securities AFS $ 6,123.6 $ 199.0 $ 5,538.8 $ 385.8 Securities carried at fair value with changes recorded in net income 0.4 — — 0.4 Equity Securities AFS 44.7 0.2 44.5 — Derivative assets at fair value — non-qualifying hedges (1) 68.5 — 68.4 0.1 Derivative assets at fair value — qualifying hedges 0.2 — 0.2 — Total $ 6,237.4 $ 199.2 $ 5,651.9 $ 386.3 Liabilities Derivative liabilities at fair value — non-qualifying hedges (1) $ (68.3 ) $ — $ (54.2 ) $ (14.1 ) Derivative liabilities at fair value — qualifying hedges (18.7 ) — (18.7 ) — Consideration holdback liability (46.0 ) — — (46.0 ) FDIC True-up Liability (65.1 ) — — (65.1 ) Total $ (198.1 ) $ — $ (72.9 ) $ (125.2 ) December 31, 2016 Assets Debt Securities AFS $ 3,674.1 $ 200.1 $ 2,988.5 $ 485.5 Securities carried at fair value with changes recorded in net income 283.5 — — 283.5 Equity Securities AFS 34.1 0.3 33.8 — Derivative assets at fair value — non-qualifying hedges (1) 94.7 — 94.7 — Derivative assets at fair value — qualifying hedges 16.9 — 16.9 — Total $ 4,103.3 $ 200.4 $ 3,133.9 $ 769.0 Liabilities Derivative liabilities at fair value — non-qualifying hedges (1) $ (68.8 ) $ — $ (57.3 ) $ (11.5 ) Consideration holdback liability (47.2 ) — — (47.2 ) FDIC True-up Liability (61.9 ) — — (61.9 ) Total $ (177.9 ) $ — $ (57.3 ) $ (120.6 ) (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 as of December 31, 2017 and 2016 . Quantitative Information about Level 3 Fair Value Measurements — Recurring (dollars in millions) Financial Instrument Estimated Valuation Technique(s) Significant Range of Inputs Weighted December 31, 2017 Assets Securities — AFS $ 385.8 Discounted cash flow Discount Rate 0.0% – 37.1% 4.6 % Prepayment Rate 2.1% – 22.3% 8.8 % Default Rate 0.0% – 7.3% 3.7 % Loss Severity 0.3% – 72.4% 35.3 % Securities carried at fair value with changes recorded in net income 0.4 Discounted cash flow Discount Rate 31.1 % 31.1 % Prepayment Rate 10.9 % 10.9 % Default Rate 2.4 % 2.4 % Loss Severity 59.2 % 59.2 % Derivative assets — non qualifying 0.1 Internal valuation model Borrower Rate 3.0% – 4.4% 3.8 % Total Assets $ 386.3 Liabilities FDIC True-up liability $ (65.1 ) Discounted cash flow Discount Rate 2.9 % 2.9 % Consideration holdback liability (46.0 ) Discounted cash flow Payment Probability 0% – 100% 48.0 % Derivative liabilities — non qualifying (14.1 ) Market Comparables (1) Total Liabilities $ (125.2 ) December 31, 2016 Securities — AFS $ 485.5 Discounted cash flow Discount Rate 0.0% – 96.4% 5.5 % Prepayment Rate 3.2% – 21.2% 8.8 % Default Rate 0.0% – 9.0% 3.9 % Loss Severity 1.0% – 79.8% 36.3 % Securities carried at fair value with changes recorded in net income 283.5 Discounted cash flow Discount Rate 0.0% – 34.6% 5.6 % Prepayment Rate 6.1% – 16.2% 11.9 % Default Rate 1.9% – 8.1% 4.6 % Loss Severity 22.2% – 44.7% 25.8 % Total Assets $ 769.0 FDIC True-up liability $ (61.9 ) Discounted cash flow Discount Rate 3.2 % 3.2 % Consideration holdback liability (47.2 ) Discounted cash flow Payment Probability 0% – 100% 40.9 % Discount Rate 1.3% – 4.0% 2.1 % Derivative liabilities – non qualifying (11.5 ) Market Comparables (1) Total Liabilities $ (120.6 ) (1) The valuation of these derivatives is primarily related to the GSI facilities, which is based on several factors using a discounted cash flow methodology, including a) funding costs for similar financings based on current market conditions; b) forecasted usage of long-dated facilities through the final maturity date in 2028; and c) forecasted amortization, due to principal payments on the underlying ABS, which impacts the amount of the unutilized portion. |
Changes In Estimated Fair Value For Financial Assets And Liabilities Measured On Recurring Basis | The following table summarizes the changes in estimated fair value for all assets and liabilities measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3): Changes in Estimated Fair Value of Level 3 Financial Assets and Liabilities Measured on a Recurring Basis (dollars in millions) Securities- AFS Securities carried at fair value with changes recorded in net income FDIC Receivable Derivative (1) Derivative liabilities — non-qualifying (1) FDIC True-up Liability Consideration holdback Liability December 31, 2016 $ 485.5 $ 283.5 $ 0.6 $ — $ (11.5 ) $ (61.9 ) $ (47.2 ) Included in earnings 6.6 23.0 0.8 0.1 (2.6 ) (3.2 ) 1.2 Included in comprehensive income 7.7 — — — — — — Impairment (1.1 ) — — — — — — Transfer from Securities- HTM 66.8 — — — — — — Sales, paydowns and adjustments (179.7 ) (306.1 ) (1.0 ) — — — — December 31, 2017 $ 385.8 $ 0.4 $ 0.4 $ 0.1 $ (14.1 ) $ (65.1 ) $ (46.0 ) December 31, 2015 $ 567.1 $ 339.7 $ 54.8 $ — $ (55.5 ) $ (56.9 ) $ (60.8 ) Included in earnings (5.8 ) 13.0 10.7 — 44.0 (5.0 ) (0.7 ) Included in comprehensive income 20.6 — — — — — — Impairment (3.3 ) — — — — — — Sales, paydowns and adjustments (93.1 ) (69.2 ) (64.9 ) — — — — 14.3 December 31, 2016 $ 485.5 $ 283.5 $ 0.6 $ — $ (11.5 ) $ (61.9 ) $ (47.2 ) (1) Valuation of the derivatives related to the TRS Transactions and written options on certain CIT Bank CDs. |
Carrying Value Of Assets Measured At Fair Value On A Non-Recurring Basis | The following table presents assets measured at estimated fair value on a non-recurring basis for which a non-recurring change in fair value has been recorded in the current year: Carrying Value of Assets Measured at Fair Value on a Non-recurring Basis (dollars in millions) Fair Value Measurements at Reporting Date Using: Total Level 1 Level 2 Level 3 Total (Losses) Assets December 31, 2017 Assets held for sale $ 177.8 $ — $ — $ 177.8 $ (15.0 ) Other real estate owned 18.8 — — 18.8 (4.4 ) Impaired loans 89.1 — — 89.1 (21.9 ) Total $ 285.7 $ — $ — $ 285.7 $ (41.3 ) December 31, 2016 Goodwill $ 51.8 $ — $ — $ 51.8 $ (354.2 ) Assets held for sale 201.6 — — 201.6 (14.7 ) Other real estate owned 22.5 — — 22.5 (3.2 ) Impaired loans 151.9 — — 151.9 (26.8 ) Total $ 427.8 $ — $ — $ 427.8 $ (398.9 ) |
Carrying And Estimated Fair Values Of Financial Instruments | The carrying values and estimated fair values of financial instruments presented below exclude leases and certain other assets and liabilities, which are not required for disclosure. Financial Instruments (dollars in millions) Estimated Fair Value Carrying Value Level 1 Level 2 Level 3 Total December 31, 2017 Financial Assets Cash and interest bearing deposits $ 1,718.7 $ 1,718.7 $ — $ — $ 1,718.7 Derivative assets at fair value — non-qualifying hedges 68.5 — 68.4 0.1 68.5 Derivative assets at fair value — qualifying hedges 0.2 — 0.2 — 0.2 Assets held for sale (excluding leases) 1,011.4 — 4.7 1,044.8 1,049.5 Loans (excluding leases) 26,428.1 — 624.3 26,220.5 26,844.8 Securities purchased under agreement to resell 150.0 — 150.0 — 150.0 Investment securities (1) 6,469.9 199.2 5,583.3 687.4 6,469.9 Indemnification assets (2) 113.5 — — 87.4 87.4 Other assets subject to fair value disclosure and unsecured counterparty receivables (3) 542.2 — — 542.2 542.2 Financial Liabilities Deposits (4) (29,586.5 ) — — (29,668.6 ) (29,668.6 ) Derivative liabilities at fair value — non-qualifying hedges (68.3 ) — (54.2 ) (14.1 ) (68.3 ) Derivative liabilities at fair value — qualifying hedges (18.7 ) — (18.7 ) — (18.7 ) Borrowings (4) (9,043.8 ) — (8,281.7 ) (991.2 ) (9,272.9 ) Credit balances of factoring clients (1,468.6 ) — — (1,468.6 ) (1,468.6 ) Other liabilities subject to fair value disclosure (5) (725.2 ) — — (725.2 ) (725.2 ) December 31, 2016 Financial Assets Cash and interest bearing deposits $ 6,430.6 $ 6,430.6 $ — $ — $ 6,430.6 Derivative assets at fair value — non-qualifying hedges 94.7 — 94.7 — 94.7 Derivative assets at fair value — qualifying hedges 16.9 — 16.9 — 16.9 Assets held for sale (excluding leases) 428.4 — 175.0 264.6 439.6 Loans (excluding leases) 26,683.0 — 390.3 26,456.4 26,846.7 Investment securities (1) 4,491.1 200.4 3,199.6 1,094.2 4,494.2 Indemnification assets (2) 233.4 — — 201.0 201.0 Other assets subject to fair value disclosure and unsecured counterparty receivables (3) 712.2 — — 712.2 712.2 Financial Liabilities Deposits (4) (32,323.2 ) — — (32,490.9 ) (32,490.9 ) Derivative liabilities at fair value — non-qualifying hedges (68.8 ) — (57.3 ) (11.5 ) (68.8 ) Borrowings (4) (15,097.8 ) — (14,457.8 ) (1,104.9 ) (15,562.7 ) Credit balances of factoring clients (1,292.0 ) — — (1,292.0 ) (1,292.0 ) Other liabilities subject to fair value disclosure (5) (1,003.6 ) — — (1,003.6 ) (1,003.6 ) (1) Level 3 estimated fair value at December 31, 2017 , includes debt securities AFS ( $385.8 million ), debt securities carried at fair value with changes recorded in net income ( $0.4 million ), and non-marketable investments ( $301.2 million ). Level 3 estimated fair value at December 31, 2016 , included debt securities AFS ( $485.5 million ), debt securities carried at fair value with changes recorded in net income ( $283.5 million ), non-marketable investments ( $256.4 million ), and debt securities HTM ( $68.8 million ). (2) The indemnification assets included in the above table do not include Agency claims indemnification ( $28.9 million and $108.0 million at December 31, 2017 and 2016 , respectively), as they are not considered financial instruments. (3) Other assets subject to fair value disclosure primarily include accrued interest receivable and miscellaneous receivables. These assets have carrying values that approximate fair value generally due to the short-term nature and are classified as Level 3. The unsecured counterparty receivables primarily consist of amounts owed to CIT from GSI for debt discount, return of collateral posted to GSI and settlements resulting from market value changes to asset-backed securities underlying the TRS. (4) Deposits and borrowings include accrued interest, which is included in "Other liabilities" in the Balance Sheet. (5) Other liabilities subject to fair value disclosure include accounts payable, accrued liabilities, customer security and maintenance deposits and miscellaneous liabilities. The fair value of these approximate carrying value and are classified as level 3. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule Of Common Stock Activity | A roll forward of common stock activity is presented in the following table. Issued Less Treasury Outstanding Common Stock — December 31, 2016 206,182,213 (4,094,541 ) 202,087,672 Restricted stock issued 1,391,588 — 1,391,588 Repurchase of common stock — (71,598,013 ) (71,598,013 ) Shares held to cover taxes on vesting restricted shares and other — (583,013 ) (583,013 ) Employee stock purchase plan participation 54,690 — 54,690 Common Stock — December 31, 2017 207,628,491 (76,275,567 ) 131,352,924 |
Components Of Accumulated Other Comprehensive Loss | The following table details the components of Accumulated Other Comprehensive Loss, net of tax: Components of Accumulated Other Comprehensive Loss (dollars in millions) December 31, 2017 December 31, 2016 Gross Unrealized Income Taxes Net Unrealized Gross Unrealized Income Taxes Net Unrealized Foreign currency translation adjustments $ 0.8 $ (8.8 ) $ (8.0 ) $ (28.6 ) $ (32.8 ) $ (61.4 ) Changes in benefit plan net gain (loss) and prior service (cost)/credit (53.6 ) (0.9 ) (54.5 ) (70.6 ) 5.3 (65.3 ) Unrealized net gains (losses) on available for sale securities (39.5 ) 15.5 (24.0 ) (22.0 ) 8.6 (13.4 ) Total accumulated other comprehensive loss $ (92.3 ) $ 5.8 $ (86.5 ) $ (121.2 ) $ (18.9 ) $ (140.1 ) The following table details the changes in the components of Accumulated Other Comprehensive Loss, net of income taxes: Changes in Accumulated Other Comprehensive 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 available for sale securities Total AOCI Balance as of December 31, 2016 $ (61.4 ) $ (65.3 ) $ (13.4 ) $ (140.1 ) AOCI activity before reclassifications 27.2 10.1 (6.9 ) 30.4 Amounts reclassified from AOCI 26.2 0.7 (3.7 ) 23.2 Net current period AOCI 53.4 10.8 (10.6 ) 53.6 Balance as of December 31, 2017 $ (8.0 ) $ (54.5 ) $ (24.0 ) $ (86.5 ) Balance as of December 31, 2015 $ (65.7 ) $ (69.3 ) $ (7.1 ) $ (142.1 ) AOCI activity before reclassifications (0.4 ) 2.4 (6.3 ) (4.3 ) Amounts reclassified from AOCI 4.7 1.6 — 6.3 Net current period AOCI 4.3 4.0 (6.3 ) 2.0 Balance as of December 31, 2016 $ (61.4 ) $ (65.3 ) $ (13.4 ) $ (140.1 ) |
Reclassifications Out Of Accumulated Other Comprehensive Income | Reclassifications Out of Accumulated Other Comprehensive Loss (dollars in millions) Years Ended December 31, 2017 2016 Gross Amount Tax Net Amount Gross Amount Tax Net Amount Affected Income Statement line item Foreign currency translation adjustments gains (losses) $ 24.1 $ 2.1 $ 26.2 $ 3.5 $ 1.2 $ 4.7 Other Non-interest Income Changes in benefit plan net gain/(loss) and prior service (cost)/credit gains (losses) 0.7 — 0.7 1.8 (0.2 ) 1.6 Operating Expenses Unrealized net gains (losses) on available for sale securities (5.9 ) 2.2 (3.7 ) — — — Other Non-interest Income Total Reclassifications out of AOCI $ 18.9 $ 4.3 $ 23.2 $ 5.3 $ 1.0 $ 6.3 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Common Equity Tier 1 Capital $ 6,479.8 $ 9,058.9 $ 4,751.6 $ 4,623.2 Tier 1 Capital 6,775.4 9,058.9 4,751.6 4,623.2 Total Capital 7,251.0 9,535.2 5,183.3 5,053.4 Risk-Weighted Assets (1) 44,537.7 64,586.3 34,527.2 34,410.3 Common Equity Tier 1 Capital Ratio Actual 14.5 % 14.0 % 13.8 % 13.4 % Effective minimum ratios under Basel III guidelines (2) 5.750 % 5.125 % 5.750 % 5.125 % Tier 1 Capital Ratio: Actual 15.2 % 14.0 % 13.8 % 13.4 % Effective minimum ratios under Basel III guidelines (2) 7.250 % 6.625 % 7.250 % 6.625 % Total Capital Ratio: Actual 16.3 % 14.8 % 15.0 % 14.7 % Effective minimum ratios under Basel III guidelines (2) 9.250 % 8.625 % 9.250 % 8.625 % Tier 1 Leverage Ratio: Actual 13.8 % 13.9 % 11.8 % 10.9 % Required minimum ratio for capital adequacy purposes 4.0 % 4.0 % 4.0 % 4.0 % (1) The decrease in CIT's Risk-Weighted Assets from December 31, 2016 to December 31, 2017, reflects the sale of the Commercial Air business. (2) Required ratios under Basel III Final Rule in effect as of the reporting date including the partially phased-in capital conservation buffer. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation Of Numerator And Denominator Of Basic EPS With Diluted EPS | The following table sets forth the computation of the Basic and Diluted earnings per share: Years Ended December 31, (dollars in millions, except per share amounts; shares in thousands) 2017 2016 2015 Earnings / (Loss) Income (loss) from continuing operations $ 259.4 $ (182.6 ) $ 724.1 Preferred stock dividends 9.8 — — Income (loss) from continuing operations available to common shareholders 249.6 (182.6 ) 724.1 Income (loss) from discontinued operations net of taxes 208.8 (665.4 ) 310.0 Net income (loss) available to common shareholders $ 458.4 $ (848.0 ) $ 1,034.1 Weighted Average Common Shares Outstanding Basic shares outstanding 162,290 201,850 185,500 Stock-based awards (1)(2) 1,660 — 888 Diluted shares outstanding 163,950 201,850 186,388 Basic Earnings Per Common Share Data Income (Loss) from continuing operations $ 1.54 $ (0.90 ) $ 3.90 Income (Loss) from discontinued operation 1.28 (3.30 ) 1.67 Basic income (loss)per common share $ 2.82 $ (4.20 ) $ 5.57 Diluted Earnings Per Common Share Data (2) Income (Loss) from continuing operations $ 1.52 $ (0.90 ) $ 3.89 Income (Loss) from discontinued operation 1.28 (3.30 ) 1.66 Diluted Income (loss) per common share $ 2.80 $ (4.20 ) $ 5.55 (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 1.3 million , 2.7 million , and 2.0 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. (2) Due to the net loss for the year ended December 31, 2016 , the Diluted Earnings Per Share calculation excluded 0.7 million 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, 2016 were utilized for the Diluted Earnings Per Share calculation. |
Non-Interest Income (Tables)
Non-Interest Income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Noninterest Income [Abstract] | |
Schedule Of Non-Interest Income | The following table sets forth the components of non-interest income: Non-interest Income (dollars in millions) Years Ended December 31, 2017 2016 2015 Rental income on operating leases $ 1,007.4 $ 1,031.6 $ 1,018.1 Other non-interest Income: Fee revenues 113.6 111.6 105.7 Factoring commissions 102.9 105.0 116.5 Gains on sales of leasing equipment 43.8 51.1 57.0 Gains on investments 31.2 34.6 0.9 Gains (losses) on loan and portfolio sales 22.9 34.2 (47.2 ) Gains (losses) on OREO sales 4.3 10.2 (5.4 ) Net gains (losses) on derivatives and foreign currency exchange (5.4 ) 55.9 (37.9 ) Impairment on assets held for sale (32.2 ) (36.6 ) (55.9 ) Termination fees on Canadian total return swap — (280.8 ) — Other revenues 83.1 65.4 15.9 Total other non-interest income 364.2 150.6 149.6 Total non-interest income $ 1,371.6 $ 1,182.2 $ 1,167.7 |
Non-Interest Expenses (Tables)
Non-Interest Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Noninterest Expense [Abstract] | |
Schedule Of Non-Interest Expenses | The following table sets forth the components of Non-interest expenses: Non-interest Expense (dollars in millions) Years Ended December 31, 2017 2016 2015 Depreciation on operating lease equipment $ 296.3 $ 261.1 $ 229.2 Maintenance and other operating lease expenses 222.9 213.6 185.1 Operating expenses: Compensation and benefits 566.3 585.5 549.6 Professional fees 132.3 175.8 135.0 Technology 127.9 133.7 109.2 Insurance 84.7 96.5 61.6 Net occupancy expense 67.8 71.9 49.1 Advertising and marketing 42.2 20.5 30.4 Other 89.6 137.8 114.6 Operating expenses, excluding restructuring costs and intangible asset amortization 1,110.8 1,221.7 1,049.5 Intangible asset amortization 24.7 25.6 13.3 Restructuring costs 53.0 36.2 58.3 Total operating expenses 1,188.5 1,283.5 1,121.1 Goodwill impairment 255.6 354.2 — Loss on debt extinguishments and deposit redemptions 220.0 12.5 1.5 Total non-interest expenses $ 2,183.3 $ 2,124.9 $ 1,536.9 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components Of Income (Loss) Before (Benefit)/Provision For Income Taxes | The following table presents the U.S. and non-U.S. components of income/ (loss) before provision (benefit) for income taxes: Income (Loss) From Continuing Operations Before Provision (Benefit) for Income Taxes (dollars in millions) Years Ended December 31, 2017 2016 2015 U.S. operations $ 251.9 $ 157.5 $ 227.6 Non-U.S. operations (60.3 ) (136.6 ) (41.6 ) Income from continuing operations before (benefit) / provision for income taxes $ 191.6 $ 20.9 $ 186.0 |
Schedule Of (Benefit)/Provision For Income Taxes | The (benefit) provision for income taxes is comprised of the following: (Benefit) Provision for Income Taxes (dollars in millions) Years Ended December 31, 2017 2016 2015 Current U.S. federal income tax provision $ 73.7 $ 0.3 $ 0.3 Deferred U.S. federal income tax (benefit) / provision 24.8 906.9 (566.3 ) Total federal income tax (benefit) / provision 98.5 907.2 (566.0 ) Current state and local income tax (benefit) / provision (0.7 ) 14.6 5.8 Deferred state and local income tax (benefit) / provision (27.8 ) 1.8 (21.0 ) Total state and local income tax (benefit) / provision (28.5 ) 16.4 (15.2 ) Total non-U.S. income tax (benefit) / provision (31.4 ) 90.8 82.4 Total provision / (benefit) for income taxes $ 38.6 $ 1,014.4 $ (498.8 ) Continuing operations (benefit) / provision $ (67.8 ) $ 203.5 $ (538.0 ) Discontinued operations (benefit) / provision 106.4 810.9 39.2 Total provision / (benefit) for income taxes $ 38.6 $ 1,014.4 $ (498.8 ) |
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 2017 2016 2015 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 $ 191.6 $ 67.0 35.0 % $ 20.9 $ 7.3 35.0 % $ 186.0 $ 65.1 35.0 % Increase (decrease) due to: State and local income taxes, net of federal income tax benefit — 4.4 2.3 — 21.0 101.0 — (10.8 ) (5.9 ) Non-deductible goodwill — 58.7 30.7 — 126.2 606.6 — 8.3 4.5 Domestic tax credits — (20.7 ) (10.8 ) — (18.1 ) (87.0 ) — (7.5 ) (4.0 ) Cumulative Method Change — Tax Advantaged Investments (1) — 26.6 13.9 — — — — — — Effect of tax law changes — (22.6 ) (11.8 ) — — — — — — Lower tax rates applicable to non-U.S. earnings — (1.6 ) (0.8 ) — (10.3 ) (49.6 ) — 0.6 0.3 International income subject to U.S. tax — 1.2 0.6 — 29.2 140.3 — 42.1 22.6 Unrecognized tax expense (benefit) — (0.2 ) (0.1 ) — (14.4 ) (69.3 ) — 4.5 2.4 Deferred income taxes on international unremitted earnings — 4.6 2.4 — 41.8 200.7 — 30.2 16.2 International Restructuring — (237.9 ) (124.2 ) — — — — — — Valuation allowances — 60.5 31.6 — 14.7 70.6 — (693.8 ) (373.0 ) International tax settlements — (3.5 ) (1.8 ) — (0.6 ) (2.7 ) — (3.5 ) (1.9 ) Other — (4.3 ) (2.4 ) — 6.7 32.4 — 26.8 14.6 Effective Tax Rate — Continuing operations $ (67.8 ) (35.4 )% $ 203.5 978.0 % $ (538.0 ) (289.2 )% Discontinued Operation Federal income tax rate $ 315.2 $ 110.3 35.0 % $ 145.5 $ 50.9 35.0 % $ 349.2 $ 122.2 35.0 % Increase (decrease) due to: State and local income taxes, net of federal income tax benefit — 7.2 2.3 — (9.5 ) (6.5 ) — 0.6 0.2 Non-deductible penalties — — — — 16.6 11.4 — — — Lower tax rates applicable to non-U.S. earnings — (93.2 ) (29.6 ) — (110.8 ) (76.1 ) — (89.3 ) (25.6 ) International income subject to U.S. tax — 44.2 14.0 — 16.7 11.5 — 8.1 2.3 Deferred income taxes on international unremitted earnings 39.7 12.6 847.3 582.1 — — Other — (1.8 ) (0.5 ) — (0.3 ) (0.3 ) — (2.4 ) (0.7 ) Effective Tax Rate — Discontinued operation $ 106.4 33.8 % $ 810.9 557.1 % $ 39.2 11.2 % Total Effective Tax Rate $ 38.6 7.6 % $ 1,014.4 609.7 % $ (498.8 ) (93.2 )% |
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, 2017 2016 Deferred Tax Assets: Net operating loss (NOL) carry forwards $ 877.3 $ 2,528.3 Basis difference in loans 181.5 281.4 Provision for credit losses 117.8 185.7 Accrued liabilities and reserves 116.6 274.9 FSA adjustments — aircraft and rail contracts — 24.2 Deferred stock-based compensation 19.5 34.5 Domestic tax credits 87.1 40.5 Capital Loss Carryforward 54.0 3.3 Other 46.8 75.8 Total gross deferred tax assets 1,500.6 3,448.6 Deferred Tax Liabilities: Operating leases (1,066.5 ) (1,818.5 ) Loans and direct financing leases (38.1 ) (100.3 ) Basis difference in mortgage backed securities (24.6 ) (100.0 ) Basis difference in federal home loan bank stock (17.5 ) (28.1 ) Non-U.S. unremitted earnings (61.0 ) (1,032.6 ) Unrealized foreign exchange gains (12.5 ) (27.7 ) Goodwill and intangibles (23.5 ) (116.7 ) Other (16.9 ) (21.6 ) Total deferred tax liabilities (1,260.6 ) (3,245.5 ) Total net deferred tax asset before valuation allowances 240.0 203.1 Less: Valuation allowances (280.6 ) (278.4 ) Net deferred tax asset (liability) after valuation allowances $ (40.6 ) $ (75.3 ) |
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, 2016 $ 36.4 $ 11.7 $ 48.1 Additions for tax positions related to prior years 1.1 1.9 3.0 Reductions for tax positions of prior years (6.4 ) (4.2 ) (10.6 ) Income Tax Audit Settlements (16.6 ) (4.4 ) (21.0 ) Other (1.0 ) 1.3 0.3 Balance at December 31, 2017 $ 13.5 $ 6.3 $ 19.8 |
Retirement, Postretirement An57
Retirement, Postretirement And Other Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits, Description [Abstract] | |
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 2017 2016 2017 2016 Change in benefit obligation Benefit obligation at beginning of year $ 443.6 $ 445.5 $ 35.2 $ 35.1 Service cost — 0.1 — — Interest cost 16.0 17.1 1.2 1.4 Plan amendments, curtailments, and settlements 3.2 (1.8 ) — — Actuarial loss 9.5 4.7 0.5 0.2 Benefits paid (27.1 ) (21.8 ) (4.1 ) (3.6 ) Other (1) (5.4 ) (0.2 ) 1.7 2.1 Benefit obligation at end of year 439.8 443.6 34.5 35.2 Change in plan assets Fair value of plan assets at beginning of period 355.5 337.9 — — Actual return on plan assets 46.0 28.2 — — Employer contributions 7.9 13.2 2.5 1.5 Plan settlements (0.6 ) (1.8 ) — — Benefits paid (27.1 ) (21.8 ) (4.1 ) (3.6 ) Other (1) (7.4 ) (0.2 ) 1.6 2.1 Fair value of plan assets at end of period 374.3 355.5 — — Funded status at end of year (2)(3) $ (65.5 ) $ (88.1 ) $ (34.5 ) $ (35.2 ) Information on accumulated benefit obligation in excess of plan assets Projected benefit obligation (6) / Accumulated benefit obligation (4)(6) $ 84.7 $ 437.4 (5) (5) Fair value of plan assets $ — $ 349.3 (1) Consists of the following: special termination benefits, plan participants' contributions and currency translation adjustments, primarily related to CIT's Germany pension plan. (2) These amounts were recognized as liabilities in the Consolidated Balance Sheet at December 31, 2017 and 2016 . (3) Company assets of $82.9 million and $86.1 million as of December 31, 2017 and 2016 , respectively, related to the non-qualified U.S. executive retirement plan obligation are not included in plan assets but related liabilities are in the benefit obligation. (4) Since the Plans' benefits are frozen, the rate of compensation increase is no longer an assumption used to calculate the accumulated benefit obligation. Therefore, the accumulated benefit obligation was the same as the projected benefit obligation at December 31, 2017 and 2016 . (5) Not applicable (6) As of December 31, 2017 , the assets for CIT's qualified pension plan exceeded the projected benefit obligations of the Plan |
Net Periodic Benefit Cost And Other Amounts Recognized In OCI | The net periodic benefit cost and other amounts recognized in AOCI consisted of the following: Net Periodic Benefit Costs and Other Amounts (dollars in millions) Retirement Benefits Post-Retirement Benefits 2017 2016 2015 2017 2016 2015 Service cost $ — $ 0.1 $ 0.2 $ — $ — $ — Interest cost 16.0 17.1 16.9 1.2 1.4 1.4 Expected return on plan assets (19.3 ) (18.5 ) (20.1 ) — — — Amortization of prior service cost — — — (0.5 ) (0.5 ) (0.5 ) Amortization of net loss/(gain) 1.6 2.9 2.6 (1.0 ) (0.7 ) (0.3 ) Net settlement and curtailment (gain)/loss and special termination benefit (1) 4.5 — — — — — Net periodic benefit cost (credit) 2.8 1.6 (0.4 ) (0.3 ) 0.2 0.6 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Net loss/(gain) (17.1 ) (5.0 ) 20.9 0.5 0.9 (1.5 ) Amortization, settlement or curtailment recognition of net (loss)/gain (1.5 ) (2.9 ) (2.6 ) 1.1 0.7 0.3 Amortization, settlement or curtailment recognition of prior service credit — — — 0.5 0.5 0.5 Total recognized in OCI (18.6 ) (7.9 ) 18.3 2.1 2.1 (0.7 ) Total recognized in net periodic benefit cost and OCI $ (15.8 ) $ (6.3 ) $ 17.9 $ 1.8 $ 2.3 $ (0.1 ) |
Weighted Average Assumptions Used To Determine Net Periodic Benefit Costs | The weighted average assumptions used in the measurement of benefit obligations are as follows: Weighted Average Assumptions Retirement Benefits Post-Retirement Benefits 2017 2016 2017 2016 Discount rate 3.45 % 3.73 % 3.50 % 3.75 % Rate of compensation increases — — (1 ) (1 ) Health care cost trend rate Pre-65 (1 ) (1 ) 6.30 % 6.50 % Post-65 (1 ) (1 ) 7.40 % 7.80 % Ultimate health care cost trend rate (1 ) (1 ) 4.50 % 4.50 % Year ultimate reached (1 ) (1 ) 2037 2037 |
Weighted Average Assumptions Used In Measurement Of 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 2017 2016 2017 2016 Discount rate 3.73 % 3.97 % 3.75 % 3.99 % Expected long-term return on plan assets 5.69 % 5.68 % (1 ) (1 ) (1) Not applicable |
Asset Fair Value Measurements | The tables below set forth asset fair value measurements. Fair Value Measurements (dollars in millions) December 31, 2017 Level 1 Level 2 Level 3 Not Classified 1 Total Fair Value Cash $ 8.3 $ — $ — $ — $ 8.3 Mutual Fund 82.5 — — — 82.5 Exchange Traded Funds 18.6 — — — 18.6 Common Stock 21.5 — — — 21.5 Short Term Investment Fund, measured at NAV 1.2 — — — 1.2 Common Collective Trust, measured at NAV — — — 206.8 206.8 Partnership, measured at NAV — — — 9.9 9.9 Hedge Fund, measured at NAV — — — 25.5 25.5 $ 132.1 $ — $ — $ 242.2 $ 374.3 December 31, 2016 Cash $ 5.8 $ — $ — $ — $ 5.8 Mutual Fund 69.9 — — — 69.9 Exchange Traded Funds 26.1 — — — 26.1 Common Stock 16.0 — — — 16.0 Short Term Investment Fund, measured at NAV 1.4 — — — 1.4 Insurance Contracts, measured at NAV — — 6.1 — 6.1 Common Collective Trust, measured at NAV — — — 195.2 195.2 Partnership, measured at NAV — — — 8.6 8.6 Hedge Fund, measured at NAV — — — 26.4 26.4 $ 119.2 $ — $ 6.1 $ 230.2 $ 355.5 (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, in accordance with ASU 2015-7. |
Changes In Fair Value Of Plans Level 3 Assets | The table below sets forth changes in the fair value of the Plan's Level 3 assets for the year ended December 31, 2017 : Fair Value of Level 3 Assets (dollars in millions) Insurance Contracts December 31, 2016 $ 6.1 Realized and Unrealized losses (0.3 ) Purchases, sales, and settlements, net (5.8 ) December 31, 2017 $ — |
Summary Of Projected Benefits 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 2018 $ 28.0 $ 2.9 $ 0.2 2019 27.2 2.9 0.3 2020 29.0 2.8 0.3 2021 29.1 2.7 0.3 2022 28.0 2.6 0.3 2023 – 2027 138.0 11.4 0.5 |
Summary Of Restricted Stock and RSU Activity | The following tables summarize restricted stock and RSU activity for 2017 and 2016 : Stock and Cash — Settled Awards Outstanding Stock-Settled Awards Cash-Settled Awards December 31, 2017 Number of Shares Weighted Average Grant Date Value Number of Shares Weighted Average Grant Date Value Unvested at beginning of period 3,043,451 $ 37.70 12,072 $ 37.81 Vested / unsettled awards at beginning of period 243,335 46.10 — — PSUs - granted to employee 194,979 41.67 — — PSUs - adjustments for performance versus targets (30,758 ) 47.76 — — RSUs - granted to employees 826,634 41.30 — — RSUs - granted to directors 32,623 46.03 8,506 46.66 Forfeited / cancelled (144,615 ) 36.41 — — Vested / settled awards (1,390,151 ) 40.92 (5,507 ) 39.42 Vested / unsettled awards (246,057 ) 45.09 — — Unvested at end of period 2,529,441 $ 37.55 15,071 $ 42.22 December 31, 2016 Unvested at beginning of period 3,384,297 $ 45.55 9,623 $ 44.97 Vested / unsettled awards at beginning of period 39,626 40.46 — — PSUs - granted to employee 284,640 32.80 — — PSUs - incremental for performance above 2012-14 targets 19,938 42.21 — — RSUs - granted to employees 1,429,554 30.32 — — RSUs - granted to directors 38,957 33.37 7,496 33.35 Forfeited / cancelled (276,627 ) 38.61 — — Vested / settled awards (1,633,599 ) 45.28 (5,047 ) 44.83 Vested / unsettled awards (243,335 ) 46.10 — — Unvested at end of period 3,043,451 $ 37.70 12,072 $ 37.81 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments [Abstract] | |
Summary Of Commitments | The accompanying table summarizes credit-related commitments, as well as purchase and funding commitments: Commitments (dollars in millions) December 31, 2017 Due to Expire December 31, 2016 Within One Year After One Year Total Outstanding Total Outstanding Financing Commitments Financing assets $ 1,594.9 $ 4,669.6 $ 6,264.5 $ 6,008.1 Letters of credit Standby letters of credit 21.2 192.1 213.3 232.2 Other letters of credit 14.2 — 14.2 14.0 Guarantees Deferred purchase agreements 2,068.1 — 2,068.1 2,060.5 Guarantees, acceptances and other recourse obligations 2.1 — 2.1 1.6 Purchase and Funding Commitments Aerospace purchase commitments (1) — — — 8,683.5 Rail and other purchase commitments 187.8 8.3 196.1 300.7 (1) The Aerospace purchase commitments in the table above are associated with Aerospace discontinued operations, which were transferred to the purchaser when Aerospace was sold in April 2017. |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Future Minimum Rental Payments | The following table presents future minimum rental payments under non-cancellable long-term lease agreements for premises and equipment at December 31, 2017 : Future Minimum Rentals (dollars in millions) Years Ended December 31, 2018 $ 47.5 2019 46.0 2020 40.1 2021 29.6 2022 16.9 Thereafter 69.7 Total $ 249.8 |
Schedule Of Rental Expense For Premises, Net Of Sublease Income, And Equipment | Rental expense for premises and equipment was as follows. The 2015 balances include five months of activity related to OneWest Bank. Years Ended December 31, (dollars in millions) 2017 2016 2015 Premises $ 34.9 $ 42.1 $ 28.7 Equipment 1.7 1.7 1.8 Total $ 36.6 $ 43.8 $ 30.5 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Pre-Tax Income (Loss) | The following table presents segment data. The 2015 include results of OneWest Bank's operations for approximately five months compared to a full year in 2016. Segment Pre-tax Income (Loss) (dollars in millions) For the year ended December 31, 2017 Commercial Banking Consumer Banking Non-Strategic Portfolios Corporate & Other Total CIT Interest income $ 1,248.0 $ 378.1 $ 22.9 $ 186.6 $ 1,835.6 Interest expense (benefit) 517.7 (51.8 ) 15.2 236.6 717.7 Provision for credit losses 88.7 25.9 — — 114.6 Rental income on operating leases 1,007.4 — — — 1,007.4 Other non-interest income 291.0 4.1 3.1 66.0 364.2 Depreciation on operating lease equipment 296.3 — — — 296.3 Maintenance and other operating lease expenses 222.9 — — — 222.9 Goodwill impairment 255.6 — — — 255.6 Operating expenses / loss on debt extinguishment 691.7 401.5 12.7 302.6 1,408.5 Income (loss) from continuing operations before provision (benefit) for income taxes $ 473.5 $ 6.6 $ (1.9 ) $ (286.6 ) $ 191.6 Select Period End Balances Loans $ 23,159.3 $ 5,954.6 $ — $ — $ 29,113.9 Credit balances of factoring clients (1,468.6 ) — — — (1,468.6 ) Assets held for sale 1,334.2 865.6 63.3 — 2,263.1 Operating lease equipment, net 6,738.9 — — — 6,738.9 For the year ended December 31, 2016 Interest income $ 1,287.9 $ 420.8 $ 80.8 $ 122.0 $ 1,911.5 Interest expense 519.1 10.2 47.2 176.7 753.2 Provision for credit losses 183.1 11.7 (0.1 ) — 194.7 Rental income on operating leases 1,020.0 — 11.6 — 1,031.6 Other non-interest income 293.8 40.0 52.1 (235.3 ) 150.6 Depreciation on operating lease equipment 261.1 — — — 261.1 Maintenance and other operating lease expenses 213.6 — — — 213.6 Goodwill impairment 34.8 319.4 — — 354.2 Operating expenses / loss on debt extinguishment 761.6 380.9 42.2 111.3 1,296.0 Income (loss) from continuing operations before provision (benefit) for income taxes $ 628.4 $ (261.4 ) $ 55.2 $ (401.3 ) $ 20.9 Select Period End Balances Loans $ 22,562.3 $ 6,973.6 $ — $ — $ 29,535.9 Credit balances of factoring clients (1,292.0 ) — — — (1,292.0 ) Assets held for sale 357.7 68.2 210.1 — 636.0 Operating lease equipment, net 7,486.1 — — — 7,486.1 For the Year Ended December 31, 2015 Interest income $ 1,029.1 $ 176.1 $ 184.8 $ 55.2 $ 1,445.2 Interest expense 481.4 24.9 121.4 103.7 731.4 Provision for credit losses 143.7 8.7 6.2 — 158.6 Rental income on operating leases 981.4 — 36.7 — 1,018.1 Other non-interest income 302.6 5.4 (96.8 ) (61.6 ) 149.6 Depreciation on operating lease equipment 218.3 — 10.9 — 229.2 Maintenance and other operating lease costs 185.1 — — — 185.1 Operating expenses / loss on debt extinguishment 727.4 158.4 123.9 112.9 1,122.6 Income (loss) from continuing operations before provision (benefit) for income taxes $ 557.2 $ (10.5 ) $ (137.7 ) $ (223.0 ) $ 186.0 Select Period End Balances Loans $ 23,332.4 $ 7,186.3 $ — $ — $ 30,518.7 Credit balances of factoring clients (1,344.0 ) — — — (1,344.0 ) Assets held for sale 435.1 45.1 1,577.5 — 2,057.7 Operating lease equipment, net 6,851.7 — — — 6,851.7 |
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 before attribution of noncontrolling interests U.S. 2017 $ 46,825.9 $ 3,046.1 $ 251.9 $ 287.3 2016 53,252.9 2,755.6 157.5 99.3 2015 55,491.1 2,084.5 227.6 876.7 Europe 2017 1,424.0 119.6 (34.5 ) (19.8 ) 2016 8,575.7 139.7 (189.2 ) (246.8 ) 2015 8,351.8 125.0 (227.6 ) (304.6 ) Other foreign 2017 1,028.8 41.5 (25.8 ) (8.1 ) 2016 2,341.6 198.4 52.6 (35.1 ) 2015 3,549.0 403.4 186.0 151.9 Total consolidated 2017 49,278.7 3,207.2 191.6 259.4 2016 64,170.2 3,093.7 20.9 (182.6 ) 2015 67,391.9 2,612.9 186.0 724.0 (1) Includes Assets of discontinued operation of $501.3 million at December 31, 2017 , $13,220.7 million at December 31, 2016 and $13,059.6 million at December 31, 2015 . |
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary Of Goodwill | The following table summarizes the goodwill balance by segment. Goodwill (dollars in millions) Commercial Consumer Total December 31, 2015 (1) $ 689.0 $ 374.2 $ 1,063.2 Impairment (2) (34.8 ) (319.4 ) (354.2 ) Other activity (3) (12.0 ) (11.6 ) (23.6 ) December 31, 2016 642.2 43.2 685.4 Impairment (2) (255.6 ) — (255.6 ) Transfers to Held for Sale (65.1 ) — (65.1 ) Foreign exchange translation 5.2 — 5.2 December 31, 2017 $ 326.7 $ 43.2 $ 369.9 (1) In preparing the interim financial statements for the quarter ended June 30, 2016, the Company discovered and corrected an immaterial error impacting the December 31, 2015 goodwill allocation among Consumer Banking and Commercial Banking in the amount of $23.2 million . The reclassification had no impact on the Company's Balance Sheet and Statements of Income or Cash Flows for any period. (2) The impairment charges exclude goodwill impairment recorded upon transfer of assets to held for sale of $4 million and $15 million for the years ended December 31, 2016 and 2015, respectively. (3) Includes measurement period adjustments related to the OneWest transaction, as described below, and foreign exchange translation. |
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, 2017 December 31, 2016 Gross Accumulated Net Gross Accumulated Net Core deposit intangibles $ 126.3 $ (43.6 ) $ 82.7 $ 126.3 $ (25.4 ) $ 100.9 Trade names 24.7 (7.7 ) 17.0 27.4 (6.1 ) 21.3 Customer relationships 23.9 (10.6 ) 13.3 23.9 (7.1 ) 16.8 Other 7.4 (7.4 ) — 9.7 (8.0 ) 1.7 Total intangible assets $ 182.3 $ (69.3 ) $ 113.0 $ 187.3 $ (46.6 ) $ 140.7 |
Summary Of Intangible Assets Rollforward | The following table presents the changes in intangible assets: Intangible Assets Rollforward (dollars in millions) Customer Core Deposit Trade Names Other Total December 31, 2015 $ 20.7 $ 118.8 $ 24.4 $ 2.2 $ 166.1 Additions — — — 1.8 1.8 Amortization (1) (3.9 ) (17.9 ) (3.1 ) (2.3 ) (27.2 ) December 31, 2016 16.8 100.9 21.3 1.7 140.7 Amortization (1) (3.5 ) (18.2 ) (2.8 ) (0.8 ) (25.3 ) Other (2) — — (1.5 ) (0.9 ) (2.4 ) December 31, 2017 $ 13.3 $ 82.7 $ 17.0 $ — $ 113.0 (1) Includes amortization recorded in operating expenses and operating lease rental income. (2) Includes adjustments as a result of the transfer of NACCO to held for sale. |
Severance And Facility Exitin62
Severance And Facility Exiting Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Severance And Facility Exiting Liabilities [Abstract] | |
Summary Of Liabilities (Pre-Tax) Related To Closing Facilities And Employee Severance | The following table summarizes liabilities (pre-tax) related to closing facilities and employee severance: Severance and Facility Exiting Liabilities (dollars in millions) Severance Facilities Number of Employees Liability Number of Facilities Liability Total Liabilities December 31, 2015 53 $ 36.9 8 $ 19.1 $ 56.0 Additions and adjustments 165 28.6 5 (0.6 ) 28.0 Utilization (183 ) (62.3 ) (2 ) (3.4 ) (65.7 ) December 31, 2016 35 3.2 11 15.1 18.3 Additions and adjustments 718 41.5 3 4.9 46.4 Utilization (215 ) (16.4 ) (4 ) (5.0 ) (21.4 ) December 31, 2017 538 $ 28.3 10 $ 15.0 $ 43.3 |
Parent Company Financial Stat63
Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 December 31, 2016 Assets: Cash and deposits $ 311.0 $ 1,172.8 Cash held at bank subsidiary 465.8 15.4 Securities purchased under agreements to resell 150.0 — Investment securities — 400.3 Receivables from nonbank subsidiaries 2,340.3 9,172.9 Receivables from bank subsidiaries 449.4 34.7 Investment in nonbank subsidiaries 2,943.3 3,597.4 Investment in bank subsidiaries 5,121.5 5,187.9 Goodwill 46.9 261.4 Other assets 723.6 2,217.7 Total Assets $ 12,551.8 $ 22,060.5 Liabilities and Equity: Borrowings $ 3,737.5 $ 10,599.0 Liabilities to nonbank subsidiaries 1,148.0 907.9 Liabilities to bank subsidiaries — 4.6 Other liabilities 346.3 546.3 Total Liabilities 5,231.8 12,057.8 Total Stockholders' Equity 7,320.0 10,002.7 Total Liabilities and Equity $ 12,551.8 $ 22,060.5 |
Condensed Parent Company Only Statement Of Operations And Comprehensive Income | Condensed Parent Company Only Statements of Income and Comprehensive Income (dollars in millions) Years Ended Years Ended December 31, 2017 2016 2015 Income Interest income from nonbank subsidiaries $ 160.5 $ 488.3 $ 435.1 Interest and dividends on interest bearing deposits and investments 7.4 2.7 3.2 Dividends from nonbank subsidiaries — 399.9 630.3 Dividends from bank subsidiaries 359.0 223.0 459.2 Other non-interest income from subsidiaries 194.0 146.3 (138.8 ) Other non-interest income (127.9 ) 21.0 128.8 Total income 593.0 1,281.2 1,517.8 Expenses Interest expense 324.7 548.2 570.7 Interest expense on liabilities to subsidiaries 50.3 51.1 43.9 Other non-interest expenses 499.4 565.0 267.2 Total expenses 874.4 1,164.3 881.8 (Loss) income before income taxes and equity in undistributed net income of subsidiaries (281.4 ) 116.9 636.0 Provision (benefit) for income taxes 163.4 (308.5 ) (827.2 ) (Loss) income before equity in undistributed net income of subsidiaries (444.8 ) 425.4 1,463.2 Equity in undistributed net income of bank subsidiaries (55.6 ) (349.8 ) (265.1 ) Equity in undistributed net income of nonbank subsidiaries 968.6 (923.6 ) (164.0 ) Net income (loss) 468.2 (848.0 ) 1,034.1 Other Comprehensive income (loss), net of tax 53.6 2.0 (8.2 ) Comprehensive income (loss) $ 521.8 $ (846.0 ) $ 1,025.9 |
Condensed Parent Company Only Statements Of Cash Flows | Condensed Parent Company Only Statements of Cash Flows (dollars in millions) Years Ended Years Ended December 31, 2017 2016 2015 Cash Flows From Operating Activities: Net income (loss) $ 468.2 $ (848.0 ) $ 1,034.1 Equity in undistributed earnings of subsidiaries (1,272.0 ) 650.4 429.1 Other operating activities, net 621.5 69.0 (566.4 ) Net cash flows (used in) provided by operations (182.3 ) (128.6 ) 896.8 Cash Flows From Investing Activities: Decrease in investments in subsidiaries 2,096.7 1,023.1 620.1 Acquisitions — — (1,559.5 ) Decrease (increase) in Investment securities and securities purchased under agreements to resell 250.3 (100.2 ) 1,454.1 Net cash flows provided by investing activities 2,347.0 922.9 514.7 Cash Flows From Financing Activities: Repayments of term debt (7,087.7 ) (359.5 ) (1,256.7 ) Net proceeds from issuance of preferred stock 318.0 — — Repurchase of common stock (3,431.9 ) — (531.8 ) Dividends paid (113.7 ) (123.0 ) (114.9 ) Net change in advances from (to) subsidiaries 7,759.9 (131.5 ) 91.0 Other financing activities, net (20.7 ) (21.9 ) (22.2 ) Net cash flows used in financing activities (2,576.1 ) (635.9 ) (1,834.6 ) Net (decrease) increase in cash and cash equivalents (411.4 ) 158.4 (423.1 ) Cash and cash equivalents, beginning of period 1,188.2 1,029.8 1,452.9 Cash and cash equivalents, end of period $ 776.8 $ 1,188.2 $ 1,029.8 |
Selected Quarterly Financial 64
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |
Selected Quarterly Financial Data | The following presents quarterly data: Selected Quarterly Financial Data (dollars in millions) Unaudited Fourth Quarter Third Quarter Second Quarter First Quarter For the year ended December 31, 2017 Interest income $ 447.7 $ 454.0 $ 478.2 $ 455.7 Interest expense 168.7 176.7 209.2 163.1 Provision for credit losses 30.4 30.1 4.4 49.7 Rental income on operating leases 252.6 252.3 251.2 251.3 Other non-interest income 137.2 63.3 84.6 79.1 Depreciation on operating lease equipment 74.3 71.1 77.4 73.5 Goodwill Impairment 255.6 — — — Maintenance and other operating lease expenses 57.9 57.9 53.3 53.8 Operating expenses 304.0 277.3 295.6 311.6 Loss on debt extinguishment and deposit redemption 1.7 53.5 164.8 — Provision (benefit) for income taxes 27.7 (119.8 ) (31.9 ) 56.2 (Loss) income from discontinued operations, net of taxes (5.2 ) (3.2 ) 115.5 101.7 Net (loss) income $ (88.0 ) $ 219.6 $ 156.7 $ 179.9 Net Income (loss) applicable to common shareholders $ (97.8 ) $ 219.6 $ 156.7 $ 179.9 Income (loss) from continuing operations applicable to common shareholders $ (92.6 ) $ 222.8 $ 41.2 $ 78.2 Net (loss) income per diluted share $ (0.74 ) $ 1.61 $ 0.85 $ 0.88 For the year ended December 31, 2016 Interest income $ 474.1 $ 475.7 $ 478.7 $ 482.9 Interest expense 178.3 188.2 191.6 195.0 Provision for credit losses 36.7 45.1 23.3 89.5 Rental income on operating leases 252.2 254.3 261.0 264.1 Other non-interest income (117.6 ) 83.6 99.8 84.8 Depreciation on operating lease equipment 69.8 66.9 63.1 61.3 Maintenance and other operating lease expenses 57.5 56.6 50.6 48.9 Goodwill Impairment 354.2 — — — Operating expenses 341.3 302.9 309.3 330.1 Loss on debt extinguishment and deposit redemption 3.3 5.2 2.4 1.6 Provision (benefit) for income taxes (6.6 ) 54.5 111.2 44.4 Income (loss) from discontinued operation, net of taxes (716.7 ) 37.3 (71.0 ) 85.0 Net income (loss) $ (1,142.5 ) $ 131.5 $ 17.0 $ 146.0 Net Income (loss) applicable to common shareholders $ (1,142.5 ) $ 131.5 $ 17.0 $ 146.0 Income (loss) from continuing operations applicable to common shareholders $ (425.8 ) $ 94.2 $ 88.0 $ 61.0 Net income (loss) per diluted share $ (5.65 ) $ 0.65 $ 0.08 $ 0.72 |
Business And Summary Of Signi65
Business And Summary Of Significant Accounting Policies (Details) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)branch | Dec. 31, 2016USD ($)payment | Dec. 31, 2015USD ($) | Aug. 03, 2015USD ($) | |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||
Number of branches acquired | branch | 70 | |||||||||||
Period past due when loans go into non accrual status | 90 days | |||||||||||
Number of consecutive scheduled payments for TDRs to remain reasonably assured | payment | 6 | |||||||||||
Minimum value of loans to be individually assessed for impairment | $ 500,000 | $ 500,000 | ||||||||||
Period for which loans are considered past due | 30 days | |||||||||||
Net income (loss) before attribution of noncontrolling interests | (88,000,000) | $ 219,600,000 | $ 156,700,000 | $ 179,900,000 | $ (1,142,500,000) | $ 131,500,000 | $ 17,000,000 | $ 146,000,000 | $ 468,200,000 | $ (848,000,000) | $ 1,034,000,000 | |
Non-interest income | 1,371,600,000 | 1,182,200,000 | 1,167,700,000 | |||||||||
Provision for income taxes | 27,700,000 | $ (119,800,000) | $ (31,900,000) | $ 56,200,000 | (6,600,000) | $ 54,500,000 | $ 111,200,000 | $ 44,400,000 | (67,800,000) | 203,500,000 | (538,000,000) | |
Tax credit investments and investments in unconsolidated subsidiaries | 247,600,000 | 220,200,000 | 247,600,000 | 220,200,000 | ||||||||
Current and deferred federal and state tax assets | 205,200,000 | $ 201,300,000 | $ 205,200,000 | 201,300,000 | ||||||||
Servicing advances, threshold period for allowance | 180 days | |||||||||||
Net cash flows provided by operations | $ 519,800,000 | 2,399,200,000 | 1,189,800,000 | |||||||||
Increase in other assets | (170,200,000) | (230,100,000) | (53,300,000) | |||||||||
Decrease in accrued liabilities and payables | (715,600,000) | 258,600,000 | (45,100,000) | |||||||||
Net cash flows used in investing activities | $ 7,755,200,000 | (495,300,000) | $ 1,085,200,000 | |||||||||
Prepaid Railcar Certification Costs | ||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||
Estimated useful life | 10 years | |||||||||||
Adoption of Proportional Amortization Method | ||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||
Net income (loss) before attribution of noncontrolling interests | (8,800,000) | |||||||||||
Non-interest income | 29,400,000 | |||||||||||
Provision for income taxes | 38,200,000 | |||||||||||
Tax credit investments and investments in unconsolidated subsidiaries | (10,500,000) | $ (10,500,000) | ||||||||||
Current and deferred federal and state tax assets | 1,800,000 | $ 1,800,000 | ||||||||||
Adjustment | ||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||
Net cash flows provided by operations | (3,600,000) | |||||||||||
Increase in other assets | 935,000,000 | |||||||||||
Decrease in accrued liabilities and payables | 936,400,000 | |||||||||||
Net cash flows used in investing activities | $ (3,600,000) | |||||||||||
Minimum | Furniture, Fixtures and Equipment | ||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||
Service lives | 3 years | |||||||||||
Minimum | Buildings | ||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||
Service lives | 20 years | |||||||||||
Maximum | Furniture, Fixtures and Equipment | ||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||
Service lives | 7 years | |||||||||||
Maximum | Buildings | ||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||
Service lives | 40 years | |||||||||||
Commercial Banking | ||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||
Minimum value of loans to be individually assessed for impairment | $ 500,000 | $ 500,000 | ||||||||||
Reverse Mortgage | ||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||
Period for which company will establish an allowance if borrower does not occupy residence | 12 months | |||||||||||
Small Commercial Loans | ||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||
Period past due when loans go into non accrual status | 90 days | |||||||||||
Small Commercial Loans | Minimum | ||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||
Delinquency period for loan charge offs | 90 days | |||||||||||
Small Commercial Loans | Maximum | ||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||
Delinquency period for loan charge offs | 180 days | |||||||||||
Consumer Loans | ||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||
Delinquency period for loan charge offs | 120 days | |||||||||||
Consumer and Small Commercial Borrower | Mortgages, Commercial Loans and Leases | ||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [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 | |||||||||||
OneWest Bank | ||||||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||||||
Duration of acquisition activity reported | 5 months | |||||||||||
Allowance for credit losses | $ 0 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) $ in Millions | May 16, 2017 | Apr. 04, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain on sale of discontinued operations, net of taxes | $ 118.6 | $ 0 | $ 0 | |||
Loan portfolio | [1] | 28,682.8 | 29,103.3 | |||
Indemnification assets | 142.4 | 341.4 | ||||
Settled Litigation | HUD OIG Investigation | Unfavorable Regulatory Action | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Settlement | $ 89 | |||||
Consumer Banking | Operating Segments | Reverse Mortgage | OneWest Bank | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Loan portfolio | 861 | |||||
Real estate owned assets | 21 | |||||
Discontinued Operations, Disposed of by Sale | Commercial Air | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Purchase price of business sold | $ 10,400 | |||||
Gain on business sold | 146 | |||||
Gain on sale of discontinued operations, net of taxes | $ 106 | |||||
Discontinued Operations, Disposed of by Sale | Aerospace | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain on sale of discontinued operations, net of taxes | 118.6 | 0 | 0 | |||
Incremental pretax amount of indirect overhead expense in continuing operations | 19 | 39 | ||||
Discontinued Operation | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain on sale of discontinued operations, net of taxes | 118.6 | 0 | $ 0 | |||
Discontinued Operation | Financial Freedom | Settled Litigation | HUD OIG Investigation | Unfavorable Regulatory Action | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Settlement | 89 | |||||
Discontinued Operation | Financial Freedom | Residential Mortgage | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Indemnification receivable released | 77 | |||||
Indemnification assets | 29 | |||||
Net release of curtailment reserve | (111) | |||||
Increase in other servicing related reserves | 40 | |||||
Impairment charge to servicing liability | $ 50 | $ 19 | ||||
[1] | The following table presents information on assets and liabilities related to Variable Interest Entities (VIEs) that are consolidated by the Company. The difference between VIE total assets and total liabilities represents the Company's interests in those entities, which were eliminated in consolidation. The assets of the consolidated VIEs will be used to settle the liabilities of those entities and, except for the Company's interest in the VIEs, are not available to the creditors of CIT or any affiliates of CIT. |
Discontinued Operations (Schedu
Discontinued Operations (Schedule Of Condensed Balance Sheet Aerospace Discontinued Operations) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Assets of discontinued operations | $ 501.3 | $ 13,220.7 | $ 13,059.6 |
Liabilities of discontinued operations | 509.3 | 3,737.7 | |
Discontinued Operations, Disposed of by Sale | Aerospace | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total cash and deposits | 0 | 759 | |
Net Loans | 165.8 | 1,047.7 | |
Operating lease equipment, net | 18.4 | 9,677.6 | |
Goodwill | 0 | 126.8 | |
Other assets | 0 | 1,161.5 | |
Assets of discontinued operations | 184.2 | 12,772.6 | |
Secured borrowings | 0 | 1,204.6 | |
Other liabilities | 8.8 | 1,597.3 | |
Liabilities of discontinued operations | $ 8.8 | 2,801.9 | |
Deposits on commercial aerospace equipment | 1,013.7 | ||
Maintenance reserves | 1,084.9 | ||
Security deposits | $ 167 |
Discontinued Operations (Sche68
Discontinued Operations (Schedule Of Condensed Statements Of Income And Cash Flow Of Aerospace Discontinued Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Provision for income taxes | $ 106.4 | $ 810.9 | $ 39.2 | |
Gain on sale of discontinued operations, net of taxes | 118.6 | 0 | 0 | |
Total income (loss) from discontinued operations, net of taxes | 208.8 | (665.4) | 310 | |
Discontinued Operations, Disposed of by Sale | Aerospace | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Interest income | 29.3 | 72.8 | 70.2 | |
Interest expense | 99.6 | 369.3 | 366.5 | |
Provision for credit losses | 0 | 15.6 | 1.8 | |
Rental income on operating leases | 312.5 | 1,236.8 | 1,134.4 | |
Other income | 9 | 22.5 | 56.5 | |
Depreciation on operating lease equipment | 0 | 345.6 | 411.4 | |
Maintenance and other operating lease expenses | 4.2 | 32.1 | 45.8 | |
Operating expenses | (39.6) | (101.9) | (68.2) | |
Loss on debt extinguishment | $ 39 | 39 | 8.3 | 1.1 |
Income from discontinued operations before provision for income taxes | 168.4 | 459.3 | 366.3 | |
Provision for income taxes | 70.5 | 914.6 | 45.9 | |
Gain on sale of discontinued operations, net of taxes | 118.6 | 0 | 0 | |
Total income (loss) from discontinued operations, net of taxes | 216.5 | (455.3) | 320.4 | |
Impairment charge | $ 32 | $ 4 | ||
Suspended depreciation | 106 | |||
Repayments on borrowings | $ 1,000 | |||
Tax expense | $ (847) | |||
Tax rate for discontinued operations | 42.00% | 199.00% | 12.00% | |
Net cash flows provided by operations | $ 32.4 | $ 35.7 | $ 942.1 | |
Net cash flows provided by (used in) investing activities | $ 10,812.7 | $ (655.9) | $ (749.6) |
Discontinued Operations (Sche69
Discontinued Operations (Schedule Of Condensed Balance Sheet Financial Freedom Discontinued Operations) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Assets of discontinued operations | $ 501.3 | $ 13,220.7 | $ 13,059.6 |
Liabilities of discontinued operations | 509.3 | 3,737.7 | |
Discontinued Operation | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total cash and deposits, all of which is restricted | 7.7 | 764.8 | |
Net Loans | 438.6 | 1,421.7 | |
Other assets | 36.6 | 1,229.8 | |
Assets of discontinued operations | 501.3 | 13,220.7 | |
Secured borrowings | 268.2 | 1,571 | |
Other liabilities | 241.1 | 2,166.7 | |
Liabilities of discontinued operations | 509.3 | 3,737.7 | |
Discontinued Operation | Financial Freedom | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total cash and deposits, all of which is restricted | 7.7 | 5.8 | |
Net Loans | 272.8 | 374 | |
Other assets | 36.6 | 68.3 | |
Assets of discontinued operations | 317.1 | 448.1 | |
Secured borrowings | 268.2 | 366.4 | |
Other liabilities | 232.3 | 569.4 | |
Liabilities of discontinued operations | 500.5 | 935.8 | |
Net finance receivables of securitized balances | 267.2 | 365.5 | |
Net finance receivables awaiting securitization | 5.6 | 8.5 | |
Loans serviced for others | 14,100 | 15,600 | |
Contingent Liabilities | Discontinued Operation | Financial Freedom | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Other liabilities | 0 | 0 | |
Reversed Mortgage Servicing Liabilities | Discontinued Operation | Financial Freedom | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Other liabilities | 0 | 0 | |
Other Accrued Liabilities | Discontinued Operation | Financial Freedom | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Other liabilities | $ 0 | $ 0 |
Discontinued Operations (Sche70
Discontinued Operations (Schedule Of Condensed Statements Of Income And Cash Flow Of Financial Freedom Discontinued Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
(Loss) income from discontinued operations, net of taxes | $ (5.2) | $ (3.2) | $ 115.5 | $ 101.7 | $ (716.7) | $ 37.3 | $ (71) | $ 85 | $ 90.2 | $ (665.4) | $ 310 |
Financial Freedom | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Net cash flows provided by operations | (47) | (40) | 18.5 | ||||||||
Net cash flows provided by (used in) investing activities | 112.6 | 88.5 | 27.9 | ||||||||
Discontinued Operation | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Interest income | 39.5 | 84.4 | 74.5 | ||||||||
Interest expense | 109.1 | 380 | 370.9 | ||||||||
Other non-interest income (loss) | (13.9) | 37.9 | 73.2 | ||||||||
Operating expenses | (30) | (432) | (101.9) | ||||||||
Income from discontinued operations before provision for income taxes | 155.8 | 145.5 | 349.2 | ||||||||
Benefit for income taxes | 65.6 | 810.9 | 39.2 | ||||||||
Other expenses | 4.2 | 32.1 | 45.8 | ||||||||
Net cash flows provided by operations | (14.6) | (4.3) | 960.6 | ||||||||
Net cash flows provided by (used in) investing activities | 10,925.3 | (567.4) | (721.7) | ||||||||
Discontinued Operation | Financial Freedom | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Interest income | 10.2 | 11.6 | 4.3 | ||||||||
Interest expense | 9.5 | 10.7 | 4.4 | ||||||||
Other non-interest income (loss) | (22.9) | 15.4 | 16.7 | ||||||||
Operating expenses | 9.6 | (330.1) | (33.7) | ||||||||
Income from discontinued operations before provision for income taxes | (12.6) | (313.8) | (17.1) | ||||||||
Benefit for income taxes | (4.9) | (103.7) | (6.7) | ||||||||
(Loss) income from discontinued operations, net of taxes | (7.7) | (210.1) | (10.4) | ||||||||
Salaries and benefits expense | 19 | 16 | 11 | ||||||||
Professional and legal fees | 11 | 27 | 6 | ||||||||
Other expenses | $ 17 | $ 22 | $ 16 | ||||||||
Additional reserves | $ 260 | ||||||||||
Tax rate for discontinued operations | 39.00% | 33.00% | 39.00% | ||||||||
Discontinued Operation | Financial Freedom | Residential Mortgage | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Impairment charge related to servicing liability | $ 50 | $ 19 | |||||||||
Net release of curtailment reserve | (111) | ||||||||||
Increase in other servicing related reserves | $ 40 |
Discontinued Operations (Sche71
Discontinued Operations (Schedule Of Condensed Balance Sheet Of Discontinued Operations) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Assets of discontinued operations | $ 501.3 | $ 13,220.7 | $ 13,059.6 |
Liabilities of discontinued operations | 509.3 | 3,737.7 | |
Discontinued Operation | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total cash and deposits | 7.7 | 764.8 | |
Net Loans | 438.6 | 1,421.7 | |
Operating lease equipment, net | 18.4 | 9,677.6 | |
Goodwill | 0 | 126.8 | |
Other assets | 36.6 | 1,229.8 | |
Assets of discontinued operations | 501.3 | 13,220.7 | |
Secured borrowings | 268.2 | 1,571 | |
Other liabilities | 241.1 | 2,166.7 | |
Liabilities of discontinued operations | $ 509.3 | $ 3,737.7 |
Discontinued Operations (Sche72
Discontinued Operations (Schedule Of Condensed Statements Of Income And Cash Flow Of Discontinued Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain on sale of discontinued operations, net of taxes | $ 118.6 | $ 0 | $ 0 |
Total income (loss) from discontinued operations, net of taxes | 208.8 | (665.4) | 310 |
Discontinued Operation | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Interest income | 39.5 | 84.4 | 74.5 |
Interest expense | 109.1 | 380 | 370.9 |
Provision for credit losses | 0 | 15.6 | 1.8 |
Rental income on operating leases | 312.5 | 1,236.8 | 1,134.4 |
Other non-interest income (loss) | (13.9) | 37.9 | 73.2 |
Depreciation on operating lease equipment | 0 | 345.6 | 411.4 |
Maintenance and other operating lease expenses | 4.2 | 32.1 | 45.8 |
Operating expenses | (30) | (432) | (101.9) |
Loss on debt extinguishment | 39 | 8.3 | 1.1 |
Income from discontinued operations before provision for income taxes | 155.8 | 145.5 | 349.2 |
Provision for income taxes | 65.6 | 810.9 | 39.2 |
Gain on sale of discontinued operations, net of taxes | 118.6 | 0 | 0 |
Total income (loss) from discontinued operations, net of taxes | 208.8 | (665.4) | 310 |
Net cash flows provided by operations | (14.6) | (4.3) | 960.6 |
Net cash flows provided by (used in) investing activities | $ 10,925.3 | $ (567.4) | $ (721.7) |
Loans (Schedule Of Loans by Pro
Loans (Schedule Of Loans by Product) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | $ 29,113.9 | $ 29,535.9 | $ 30,518.7 |
Loans held for sale | 1,095.7 | 635.8 | |
Total | 30,209.6 | 30,171.7 | |
Commercial Banking | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 23,577.9 | 22,970.7 | |
Total | 23,807.9 | 23,538.3 | |
Consumer Portfolio | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 5,536 | 6,565.2 | |
Loans | Commercial Banking | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 20,892.1 | 20,117.8 | |
Direct financing leases and leveraged leases | Commercial Banking | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | $ 2,685.8 | $ 2,852.9 |
Loans (Schedule Of Loans By Seg
Loans (Schedule Of Loans By Segment, Based On Obligor Location) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | $ 29,113.9 | $ 29,535.9 | $ 30,518.7 |
Commercial Banking | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 23,159.3 | 22,562.3 | |
Consumer Banking | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 5,954.6 | 6,973.6 | |
Domestic | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 27,323.3 | 27,414.3 | |
Domestic | Commercial Banking | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 21,368.7 | 20,440.7 | |
Domestic | Consumer Banking | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 5,954.6 | 6,973.6 | |
Foreign | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 1,790.6 | 2,121.6 | |
Foreign | Commercial Banking | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 1,790.6 | 2,121.6 | |
Foreign | Consumer Banking | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | $ 0 | $ 0 |
Loans (Components Of Net Invest
Loans (Components Of Net Investment In Loans) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Unearned income | $ (727.8) | $ (727.1) |
Equipment residual values | 522.6 | 583.4 |
Net unamortized premiums / (discounts) | 3.7 | (31) |
Accretable yield on PCI loans | 1,063.7 | 1,261.4 |
Leveraged lease third party non-recourse debt payable | (97.3) | (109.7) |
Commercial Banking | ||
Net unamortized deferred costs and (fees) | $ 68.7 | $ 55.8 |
Loans (Finance And Held-For-Sal
Loans (Finance And Held-For-Sale Loans - By Risk Rating) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 30,209.6 | $ 30,171.7 |
Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 23,807.9 | 23,538.3 |
Commercial Banking | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 21,055.6 | 20,222.1 |
Commercial Banking | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,065.5 | 1,327.6 |
Commercial Banking | Classified- accruing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,428.3 | 1,611.4 |
Commercial Banking | Classified- non-accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 200.6 | 261.2 |
Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 23,326.1 | 22,919.9 |
Commercial Banking | Commercial Finance | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 10,052.3 | 10,275.5 |
Commercial Banking | Real Estate Finance | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 5,590.2 | 5,566.6 |
Commercial Banking | Business Capital | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 7,579.8 | 6,974.1 |
Commercial Banking | Rail | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 103.8 | 103.7 |
Commercial Banking | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 23,326.1 | 22,919.9 |
Commercial Banking | Commercial Banking | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 20,641.4 | 19,703.5 |
Commercial Banking | Commercial Banking | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,052 | 1,282.4 |
Commercial Banking | Commercial Banking | Classified- accruing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,386.2 | 1,569.9 |
Commercial Banking | Commercial Banking | Classified- non-accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 190.8 | 250.9 |
Commercial Banking | Commercial Banking | Commercial Finance | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 10,052.3 | 10,275.5 |
Commercial Banking | Commercial Banking | Commercial Finance | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 8,284.1 | 8,184.7 |
Commercial Banking | Commercial Banking | Commercial Finance | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 640.9 | 677.6 |
Commercial Banking | Commercial Banking | Commercial Finance | Classified- accruing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 981.9 | 1,181.7 |
Commercial Banking | Commercial Banking | Commercial Finance | Classified- non-accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 134.8 | 188.8 |
Commercial Banking | Commercial Banking | Real Estate Finance | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 5,590.2 | 5,566.6 |
Commercial Banking | Commercial Banking | Real Estate Finance | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 5,228.1 | 5,191.4 |
Commercial Banking | Commercial Banking | Real Estate Finance | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 139.9 | 168.7 |
Commercial Banking | Commercial Banking | Real Estate Finance | Classified- accruing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 174.3 | 115.6 |
Commercial Banking | Commercial Banking | Real Estate Finance | Classified- non-accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2.8 | 20.4 |
Commercial Banking | Commercial Banking | Business Capital | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 7,579.8 | 6,974.1 |
Commercial Banking | Commercial Banking | Business Capital | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 7,028.6 | 6,238.7 |
Commercial Banking | Commercial Banking | Business Capital | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 269.2 | 422 |
Commercial Banking | Commercial Banking | Business Capital | Classified- accruing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 228.8 | 271.7 |
Commercial Banking | Commercial Banking | Business Capital | Classified- non-accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 53.2 | 41.7 |
Commercial Banking | Commercial Banking | Rail | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 103.8 | 103.7 |
Commercial Banking | Commercial Banking | Rail | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 100.6 | 88.7 |
Commercial Banking | Commercial Banking | Rail | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2 | 14.1 |
Commercial Banking | Commercial Banking | Rail | Classified- accruing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1.2 | 0.9 |
Commercial Banking | Commercial Banking | Rail | Classified- non-accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Consumer Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 6,820.2 | 7,041.8 |
Consumer Banking | Other Consumer Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,489.1 | 2,179.1 |
Consumer Banking | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 418.5 | 408.4 |
Consumer Banking | Commercial Banking | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 378.5 | 374.9 |
Consumer Banking | Commercial Banking | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 5.9 | 8.3 |
Consumer Banking | Commercial Banking | Classified- accruing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 31.9 | 22.4 |
Consumer Banking | Commercial Banking | Classified- non-accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Consumer Banking | Commercial Banking | Other Consumer Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 418.5 | 408.4 |
Consumer Banking | Commercial Banking | Other Consumer Banking | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 378.5 | 374.9 |
Consumer Banking | Commercial Banking | Other Consumer Banking | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 5.9 | 8.3 |
Consumer Banking | Commercial Banking | Other Consumer Banking | Classified- accruing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 31.9 | 22.4 |
Consumer Banking | Commercial Banking | Other Consumer Banking | Classified- non-accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Consumer Banking | Commercial Banking | SBA Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 370.1 | |
Consumer Banking | Commercial Banking | Private Banking Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 38.3 | |
Non-Strategic Portfolios | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 63.3 | 210 |
Non-Strategic Portfolios | Commercial Banking | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 35.7 | 143.7 |
Non-Strategic Portfolios | Commercial Banking | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 7.6 | 36.9 |
Non-Strategic Portfolios | Commercial Banking | Classified- accruing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 10.2 | 19.1 |
Non-Strategic Portfolios | Commercial Banking | Classified- non-accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 9.8 | 10.3 |
PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,961.4 | 2,349.8 |
PCI Loans | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 57.9 | 116 |
PCI Loans | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 55.7 | 113.2 |
PCI Loans | Commercial Banking | Commercial Finance | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 10.6 | 42.7 |
PCI Loans | Commercial Banking | Real Estate Finance | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 45.1 | 70.5 |
PCI Loans | Commercial Banking | Business Capital | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
PCI Loans | Commercial Banking | Rail | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
PCI Loans | Commercial Banking | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 55.7 | 113.2 |
PCI Loans | Commercial Banking | Commercial Banking | Commercial Finance | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 10.6 | 42.7 |
PCI Loans | Commercial Banking | Commercial Banking | Real Estate Finance | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 45.1 | 70.5 |
PCI Loans | Commercial Banking | Commercial Banking | Business Capital | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
PCI Loans | Commercial Banking | Commercial Banking | Rail | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
PCI Loans | Consumer Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,905.7 | 2,236.6 |
PCI Loans | Consumer Banking | Other Consumer Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2.2 | 2.8 |
PCI Loans | Consumer Banking | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2.2 | 2.8 |
PCI Loans | Consumer Banking | Commercial Banking | Other Consumer Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2.2 | 2.8 |
PCI Loans | Non-Strategic Portfolios | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 0 | $ 0 |
Loans (Narrative) (Details)
Loans (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($)loan | Dec. 31, 2016USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans individually evaluated for impairment | $ 172,700,000 | $ 221,800,000 |
Period past due when loans go into non accrual status | 90 days | |
Recorded investment in loans with modifications | $ 103,500,000 | $ 82,300,000 |
Percentage of TDRs on non-accrual | 63.00% | 41.00% |
Commitments to lend to borrowers whose loans terms have been modified in TDRs | $ 13,400,000 | $ 5,400,000 |
Recorded investment related to modifications qualifying as TDRs | $ 92,500,000 | 80,500,000 |
Number of payments for default of TDR | loan | 1 | |
Recorded investment of TDRs that experience a payment default within one year of the modification | $ 47,000,000 | $ 11,300,000 |
Payments deferral rate for TDRs | 31.00% | 12.00% |
Covenant relief rate for TDRs | 69.00% | 88.00% |
PCI Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Purchase discount on repurchased loans | $ 9,100,000 | |
Reverse Mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans in portfolio | loan | 1,500 | |
Unpaid principal balance of portfolio | $ 944,000,000 | |
HAMP | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans in trial modification period | 300,000 | 36,400,000 |
2MP | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans in trial modification period | 100,000 | |
Proprietary Programs | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans in trial modification period | 12,200,000 | 3,000,000 |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans individually evaluated for impairment | $ 500,000 | |
Trial payment period for consumer borrowers experiencing financing difficulty | 3 months | |
Principal as a percent of maximum claim amount for which company is required to repurchase loans | 98.00% | |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trial payment period for consumer borrowers experiencing financing difficulty | 4 months | |
Small Commercial Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Period past due when loans go into non accrual status | 90 days | |
Real Estate Mortgage Loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Period past due when loans go into non accrual status | 120 days | |
Accruing Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded investment in loans with modifications | $ 12,300,000 | 38,100,000 |
Non-Accruing Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded investment in loans with modifications | $ 200,000 | $ 1,400,000 |
Reverse Mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans in portfolio | loan | 1,700 | |
Unpaid principal balance of portfolio | $ 1,027,900,000 | |
Average borrower age in portfolio | 83 years | |
Reverse Mortgages, HFI | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Service loans accounted for under the effective yield method | $ 30,400,000 | |
Commercial Banking | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of investment in TDRs | 83.00% | 85.00% |
Defaults on TDRs | 93.00% | |
Consumer Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of investment in TDRs | 17.00% | 15.00% |
Defaults on TDRs | 7.00% | |
Consumer Banking | Reverse Mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding balance of loans | $ 859,000,000 | |
Consumer Banking | Reverse Mortgages Uninsured | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding balance of loans | 769,600,000 | |
HECM Reverse Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding balance of loans | $ 136,300,000 | 122,200,000 |
Payments to repurchase loans | 118,000,000 | |
HECM Reverse Mortgages | Reverse Mortgages, AHFS | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding balance of loans | 177,600,000 | 32,800,000 |
HECM Reverse Mortgages | Reverse Mortgages, HFI | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Purchase discount on repurchased loans | 68,100,000 | |
Consumer Banking | Commercial Banking | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans with terms that permit negative amortization | 484,000,000 | $ 761,000,000 |
Financial Freedom | Discontinued Operations, Held-for-sale | Consumer Banking | Reverse Mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding balance of loans | 861,000,000 | |
Financial Freedom | Discontinued Operations, Held-for-sale | Consumer Banking | Reverse Mortgages Uninsured | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding balance of loans | $ 724,700,000 |
Loans (Schedule Of Consumer Loa
Loans (Schedule Of Consumer Loan LTV Distributions) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 29,113.9 | $ 29,535.9 | $ 30,518.7 |
Reverse Mortgage | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans transferred to AHFS | 861 | ||
Consumer Portfolio | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 5,536 | 6,565.2 | |
Consumer Portfolio | Greater than 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 170.4 | 319.1 | |
Consumer Portfolio | 101% — 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 302.3 | 483.8 | |
Consumer Portfolio | 80% — 100% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 780.9 | 929 | |
Consumer Portfolio | Less than 80% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 4,281.6 | 4,830.4 | |
Consumer Portfolio | Not Applicable | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0.8 | 2.9 | |
Consumer Portfolio | Single Family Residential | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 5,536 | 5,706.3 | |
Consumer Portfolio | Single Family Residential | Greater than 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 170.4 | 275.9 | |
Consumer Portfolio | Single Family Residential | 101% — 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 302.3 | 462 | |
Consumer Portfolio | Single Family Residential | 80% — 100% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 780.9 | 855.2 | |
Consumer Portfolio | Single Family Residential | Less than 80% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 4,281.6 | 4,110.3 | |
Consumer Portfolio | Single Family Residential | Not Applicable | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0.8 | 2.9 | |
Consumer Portfolio | Reverse Mortgage | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 858.9 | |
Consumer Portfolio | Reverse Mortgage | Greater than 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 43.2 | |
Consumer Portfolio | Reverse Mortgage | 101% — 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 21.8 | |
Consumer Portfolio | Reverse Mortgage | 80% — 100% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 73.8 | |
Consumer Portfolio | Reverse Mortgage | Less than 80% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 720.1 | |
Consumer Portfolio | Reverse Mortgage | Not Applicable | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Covered Loans | Reverse Mortgage | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans transferred to AHFS | 411 | ||
Covered Loans | Consumer Portfolio | Single Family Residential | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,392.6 | 1,749.1 | |
Covered Loans | Consumer Portfolio | Single Family Residential | Greater than 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 2.7 | 2.2 | |
Covered Loans | Consumer Portfolio | Single Family Residential | 101% — 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 6.4 | 4.7 | |
Covered Loans | Consumer Portfolio | Single Family Residential | 80% — 100% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 77.4 | 226.6 | |
Covered Loans | Consumer Portfolio | Single Family Residential | Less than 80% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,306.1 | 1,515.6 | |
Covered Loans | Consumer Portfolio | Single Family Residential | Not Applicable | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Covered Loans | Consumer Portfolio | Reverse Mortgage | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 431.2 | |
Covered Loans | Consumer Portfolio | Reverse Mortgage | Greater than 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0.6 | |
Covered Loans | Consumer Portfolio | Reverse Mortgage | 101% — 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 1.2 | |
Covered Loans | Consumer Portfolio | Reverse Mortgage | 80% — 100% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 24 | |
Covered Loans | Consumer Portfolio | Reverse Mortgage | Less than 80% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 405.4 | |
Covered Loans | Consumer Portfolio | Reverse Mortgage | Not Applicable | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Covered Loans | Consumer Portfolio | PCI Loans | Single Family Residential | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,895.8 | 2,165.6 | |
Covered Loans | Consumer Portfolio | PCI Loans | Single Family Residential | Greater than 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 160 | 261.4 | |
Covered Loans | Consumer Portfolio | PCI Loans | Single Family Residential | 101% — 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 291.5 | 443.7 | |
Covered Loans | Consumer Portfolio | PCI Loans | Single Family Residential | 80% — 100% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 566.2 | 588.1 | |
Covered Loans | Consumer Portfolio | PCI Loans | Single Family Residential | Less than 80% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 878.1 | 872.4 | |
Covered Loans | Consumer Portfolio | PCI Loans | Single Family Residential | Not Applicable | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Non-covered Loans | Consumer Portfolio | Single Family Residential | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 2,239.9 | 1,782.4 | |
Non-covered Loans | Consumer Portfolio | Single Family Residential | Greater than 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 7.7 | 12.3 | |
Non-covered Loans | Consumer Portfolio | Single Family Residential | 101% — 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 4.4 | 13.6 | |
Non-covered Loans | Consumer Portfolio | Single Family Residential | 80% — 100% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 137.3 | 40.5 | |
Non-covered Loans | Consumer Portfolio | Single Family Residential | Less than 80% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 2,089.7 | 1,713.1 | |
Non-covered Loans | Consumer Portfolio | Single Family Residential | Not Applicable | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0.8 | 2.9 | |
Non-covered Loans | Consumer Portfolio | Reverse Mortgage | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 368.7 | |
Non-covered Loans | Consumer Portfolio | Reverse Mortgage | Greater than 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 8.8 | |
Non-covered Loans | Consumer Portfolio | Reverse Mortgage | 101% — 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 12.7 | |
Non-covered Loans | Consumer Portfolio | Reverse Mortgage | 80% — 100% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 42.3 | |
Non-covered Loans | Consumer Portfolio | Reverse Mortgage | Less than 80% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 304.9 | |
Non-covered Loans | Consumer Portfolio | Reverse Mortgage | Not Applicable | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Non-covered Loans | Consumer Portfolio | PCI Loans | Single Family Residential | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 7.7 | 9.2 | |
Non-covered Loans | Consumer Portfolio | PCI Loans | Single Family Residential | Greater than 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Non-covered Loans | Consumer Portfolio | PCI Loans | Single Family Residential | 101% — 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Non-covered Loans | Consumer Portfolio | PCI Loans | Single Family Residential | 80% — 100% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Non-covered Loans | Consumer Portfolio | PCI Loans | Single Family Residential | Less than 80% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 7.7 | 9.2 | |
Non-covered Loans | Consumer Portfolio | PCI Loans | Single Family Residential | Not Applicable | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Non-covered Loans | Consumer Portfolio | PCI Loans | Reverse Mortgage | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 59 | |
Non-covered Loans | Consumer Portfolio | PCI Loans | Reverse Mortgage | Greater than 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 33.8 | |
Non-covered Loans | Consumer Portfolio | PCI Loans | Reverse Mortgage | 101% — 125% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 7.9 | |
Non-covered Loans | Consumer Portfolio | PCI Loans | Reverse Mortgage | 80% — 100% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 7.5 | |
Non-covered Loans | Consumer Portfolio | PCI Loans | Reverse Mortgage | Less than 80% | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 9.8 | |
Non-covered Loans | Consumer Portfolio | PCI Loans | Reverse Mortgage | Not Applicable | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 0 | $ 0 |
Loans (Finance And Held For Sal
Loans (Finance And Held For Sale Loans - Delinquency Status) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 395.9 | $ 339.5 |
Current | 27,852.3 | 27,482.4 |
Total | 30,209.6 | 30,171.7 |
30 — 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 227.4 | 204 |
60 — 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 50.6 | 55.1 |
90 Days or Greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 117.9 | 80.4 |
Commercial Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 297.4 | 250.2 |
Current | 22,973 | 22,556.5 |
Total | 23,326.1 | 22,919.9 |
Commercial Banking | 30 — 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 189.3 | 171 |
Commercial Banking | 60 — 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 34.8 | 43 |
Commercial Banking | 90 Days or Greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 73.3 | 36.2 |
Commercial Banking | Commercial Finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 53.8 | 39 |
Current | 9,987.9 | 10,193.8 |
Total | 10,052.3 | 10,275.5 |
Commercial Banking | Commercial Finance | 30 — 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 4.5 | 21.4 |
Commercial Banking | Commercial Finance | 60 — 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial Banking | Commercial Finance | 90 Days or Greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 49.3 | 17.6 |
Commercial Banking | Real Estate Finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 12.8 | 0.1 |
Current | 5,532.3 | 5,496 |
Total | 5,590.2 | 5,566.6 |
Commercial Banking | Real Estate Finance | 30 — 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 8.7 | 0.1 |
Commercial Banking | Real Estate Finance | 60 — 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial Banking | Real Estate Finance | 90 Days or Greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 4.1 | 0 |
Commercial Banking | Business Capital | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 224.7 | 202.3 |
Current | 7,355.1 | 6,771.8 |
Total | 7,579.8 | 6,974.1 |
Commercial Banking | Business Capital | 30 — 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 172.2 | 143.6 |
Commercial Banking | Business Capital | 60 — 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 33.4 | 42.4 |
Commercial Banking | Business Capital | 90 Days or Greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 19.1 | 16.3 |
Commercial Banking | Rail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 6.1 | 8.8 |
Current | 97.7 | 94.9 |
Total | 103.8 | 103.7 |
Commercial Banking | Rail | 30 — 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 3.9 | 5.9 |
Commercial Banking | Rail | 60 — 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1.4 | 0.6 |
Commercial Banking | Rail | 90 Days or Greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0.8 | 2.3 |
Consumer Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 79.6 | 78.2 |
Current | 4,834.9 | 4,727 |
Total | 6,820.2 | 7,041.8 |
Consumer Banking | 30 — 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 36.3 | 30 |
Consumer Banking | 60 — 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 8.1 | 11 |
Consumer Banking | 90 Days or Greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 35.2 | 37.2 |
Consumer Banking | LCM | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 69.1 | 65.3 |
Current | 1,358.5 | 2,563.6 |
Total | 3,331.1 | 4,862.7 |
Consumer Banking | LCM | 30 — 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 26.7 | 22.6 |
Consumer Banking | LCM | 60 — 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 7.6 | 6.1 |
Consumer Banking | LCM | 90 Days or Greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 34.8 | 36.6 |
Consumer Banking | Other Consumer Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 10.5 | 12.9 |
Current | 3,476.4 | 2,163.4 |
Total | 3,489.1 | 2,179.1 |
Consumer Banking | Other Consumer Banking | 30 — 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 9.6 | 7.4 |
Consumer Banking | Other Consumer Banking | 60 — 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0.5 | 4.9 |
Consumer Banking | Other Consumer Banking | 90 Days or Greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0.4 | 0.6 |
PCI Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 1,961.4 | 2,349.8 |
PCI Loans | Commercial Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 55.7 | 113.2 |
PCI Loans | Commercial Banking | Commercial Finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 10.6 | 42.7 |
PCI Loans | Commercial Banking | Real Estate Finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 45.1 | 70.5 |
PCI Loans | Commercial Banking | Business Capital | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
PCI Loans | Commercial Banking | Rail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
PCI Loans | Consumer Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 1,905.7 | 2,236.6 |
PCI Loans | Consumer Banking | LCM | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 1,903.5 | 2,233.8 |
PCI Loans | Consumer Banking | Other Consumer Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 2.2 | 2.8 |
Non-Strategic Portfolios | Non-Strategic Portfolios | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 18.9 | 11.1 |
Current | 44.4 | 198.9 |
Total | 63.3 | 210 |
Non-Strategic Portfolios | Non-Strategic Portfolios | 30 — 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1.8 | 3 |
Non-Strategic Portfolios | Non-Strategic Portfolios | 60 — 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 7.7 | 1.1 |
Non-Strategic Portfolios | Non-Strategic Portfolios | 90 Days or Greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 9.4 | 7 |
Non-Strategic Portfolios | PCI Loans | Non-Strategic Portfolios | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 0 | $ 0 |
Loans (Loans On Non-accrual Sta
Loans (Loans On Non-accrual Status) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total | $ 220.9 | $ 278.6 |
Repossessed assets and OREO | 54.6 | 72.7 |
Total non-performing assets | 275.5 | 351.3 |
Commercial loans past due 90 days or more accruing | 11.7 | 7.2 |
Consumer loans past due 90 days or more accruing | 20.2 | 24.8 |
Total Accruing loans past due 90 days or more | 31.9 | 32 |
Held for Investment | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total | 211.1 | 236.2 |
Held for Sale | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total | 9.8 | 42.4 |
Commercial Banking | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total | 190.8 | 250.9 |
Commercial Banking | Held for Investment | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total | 190.8 | 218.8 |
Commercial Banking | Held for Sale | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total | 0 | 32.1 |
Commercial Banking | Commercial Finance | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total | 134.8 | 188.8 |
Commercial Banking | Commercial Finance | Held for Investment | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total | 134.8 | 156.7 |
Commercial Banking | Real Estate Finance | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total | 2.8 | 20.4 |
Commercial Banking | Real Estate Finance | Held for Investment | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total | 2.8 | 20.4 |
Commercial Banking | Business Capital | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total | 53.2 | 41.7 |
Commercial Banking | Business Capital | Held for Investment | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total | 53.2 | 41.7 |
Consumer Banking | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total | 20.3 | 17.4 |
Consumer Banking | Held for Investment | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total | 20.3 | 17.4 |
Consumer Banking | Held for Sale | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total | 0 | |
Consumer Banking | LCM | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total | 19.9 | 17.3 |
Consumer Banking | LCM | Held for Investment | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total | 19.9 | 17.3 |
Consumer Banking | LCM | Held for Sale | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total | 0 | |
Consumer Banking | Other Consumer Banking | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total | 0.4 | 0.1 |
Consumer Banking | Other Consumer Banking | Held for Investment | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total | 0.4 | 0.1 |
Consumer Banking | Other Consumer Banking | Held for Sale | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total | 0 | |
Non-Strategic Portfolios | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total | 9.8 | 10.3 |
Non-Strategic Portfolios | Held for Sale | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total | $ 9.8 | $ 10.3 |
Loans (Schedule Of Loans In Pro
Loans (Schedule Of Loans In Process Of Foreclosure) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Loans In Process Of Foreclosure [Line Items] | ||
Loans in process of foreclosure | $ 274.6 | $ 308 |
PCI Loans | ||
Loans In Process Of Foreclosure [Line Items] | ||
Loans in process of foreclosure | 133.7 | 201.7 |
Non-PCI | ||
Loans In Process Of Foreclosure [Line Items] | ||
Loans in process of foreclosure | 140.9 | 106.3 |
OREO | ||
Loans In Process Of Foreclosure [Line Items] | ||
Loans in process of foreclosure | 52.1 | $ 69.9 |
Reverse Mortgage | ||
Loans In Process Of Foreclosure [Line Items] | ||
Loans in process of foreclosure, transfered from AHFI to AHFS | 122.5 | |
Reverse Mortgage | OREO | ||
Loans In Process Of Foreclosure [Line Items] | ||
Loans in process of foreclosure, transfered from AHFI to AHFS | $ 21 |
Loans (Impaired Loans) (Details
Loans (Impaired Loans) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | $ 2,134.1 | $ 2,571.6 |
Unpaid Principal Balance | 3,065.7 | 3,685 |
Related Allowance | 45.1 | 47.3 |
Average Recorded Investment | 2,391.2 | 2,685.8 |
Commercial Finance | Commercial Banking | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance, Recorded Investment | 51.9 | 54.3 |
With related allowance, Recorded Investment | 95.9 | 143 |
With no related allowance, Unpaid Principal Balance | 72.7 | 72.2 |
With related allowance, Unpaid Principal Balance | 96.1 | 146.2 |
Related Allowance | 21.3 | 25.5 |
With no related allowance, Average Recorded Investment | 59.9 | 29.5 |
With related allowance, Average Recorded Investment | 136.6 | 132.1 |
Business Capital | Commercial Banking | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance, Recorded Investment | 11.7 | 0.5 |
With related allowance, Recorded Investment | 10.5 | 6.6 |
With no related allowance, Unpaid Principal Balance | 13.4 | 1.8 |
With related allowance, Unpaid Principal Balance | 10.5 | 6.6 |
Related Allowance | 4.3 | 4.2 |
With no related allowance, Average Recorded Investment | 5.7 | 5.1 |
With related allowance, Average Recorded Investment | 14.2 | 8.2 |
Real Estate Finance | Commercial Banking | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance, Recorded Investment | 0 | 0.7 |
With related allowance, Recorded Investment | 2.7 | 16.7 |
With no related allowance, Unpaid Principal Balance | 0 | 0.7 |
With related allowance, Unpaid Principal Balance | 2.8 | 16.8 |
Related Allowance | 0.4 | 4 |
With no related allowance, Average Recorded Investment | 0.4 | 1.3 |
With related allowance, Average Recorded Investment | 5.6 | 5.2 |
Impaired Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 172.7 | 221.8 |
Unpaid Principal Balance | 195.5 | 244.3 |
Related Allowance | 26 | 33.7 |
Average Recorded Investment | 222.4 | 181.4 |
Interest income recorded | 2.4 | 1.6 |
Interest income recognized using cash basis method | 0 | 0.6 |
PCI Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 1,961.4 | 2,349.8 |
Unpaid Principal Balance | 2,870.2 | 3,440.7 |
Related Allowance | 19.1 | 13.6 |
Average Recorded Investment | 2,168.8 | 2,504.4 |
PCI Loans | Commercial Finance | Commercial Banking | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 10.6 | 42.7 |
Unpaid Principal Balance | 16.4 | 70 |
Related Allowance | 0.7 | 2.4 |
PCI Loans | Real Estate Finance | Commercial Banking | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 45.1 | 70.5 |
Unpaid Principal Balance | 60.1 | 108.1 |
Related Allowance | $ 7 | $ 4.9 |
Loans (Purchased Credit Impaire
Loans (Purchased Credit Impaired Loans With Deteriorated Credit Quality) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | $ 3,065.7 | $ 3,685 |
Carrying Value | 2,134.1 | 2,571.6 |
Allowance for Loan Losses | 45.1 | 47.3 |
Commercial Banking | Commercial Finance | ||
Financing Receivable, Impaired [Line Items] | ||
Allowance for Loan Losses | 21.3 | 25.5 |
Commercial Banking | Real Estate Finance | ||
Financing Receivable, Impaired [Line Items] | ||
Allowance for Loan Losses | 0.4 | 4 |
PCI Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 2,870.2 | 3,440.7 |
Carrying Value | 1,961.4 | 2,349.8 |
Allowance for Loan Losses | 19.1 | 13.6 |
PCI Loans | Commercial Banking | Commercial Finance | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 16.4 | 70 |
Carrying Value | 10.6 | 42.7 |
Allowance for Loan Losses | 0.7 | 2.4 |
PCI Loans | Commercial Banking | Real Estate Finance | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 60.1 | 108.1 |
Carrying Value | 45.1 | 70.5 |
Allowance for Loan Losses | 7 | 4.9 |
PCI Loans | Consumer Banking | Other Consumer Banking | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 3 | 3.7 |
Carrying Value | 2.2 | 2.8 |
Allowance for Loan Losses | 0 | 0 |
PCI Loans | Consumer Banking | LCM | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 2,790.7 | 3,258.9 |
Carrying Value | 1,903.5 | 2,233.8 |
Allowance for Loan Losses | $ 11.4 | $ 6.3 |
Loans (Summary Of Commercial PC
Loans (Summary Of Commercial PCI Loans By Credit Quality) (Details) - Commercial PCI Loans - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 55.7 | $ 113.2 |
Non-criticized | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 21.8 | 41 |
Criticized | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 33.9 | 72.2 |
Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 10.6 | 42.7 |
Commercial Banking | Non-criticized | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 5.4 |
Commercial Banking | Criticized | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 10.6 | 37.3 |
Real Estate Finance | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 45.1 | 70.5 |
Real Estate Finance | Non-criticized | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 21.8 | 35.6 |
Real Estate Finance | Criticized | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 23.3 | $ 34.9 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Beginning Balance | $ 1,261.4 | $ 1,299.1 | $ 1,254.8 |
Accretion into interest income | (204.6) | (208.3) | (76.2) |
Reclassification from non-accretable difference | 38.5 | 213.7 | 133.2 |
Disposals and Other | (31.6) | (43.1) | (12.7) |
Ending Balance | $ 1,063.7 | $ 1,261.4 | $ 1,299.1 |
Allowance For Loan Losses (Sche
Allowance For Loan Losses (Schedule Of Allowance For Loan Losses And Recorded Investment In Finance Receivables) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning balance | $ 432.6 | $ 347 | $ 432.6 | $ 347 | |||||||
Provision for credit losses | $ 30.4 | $ 30.1 | $ 4.4 | 49.7 | $ 36.7 | $ 45.1 | $ 23.3 | 89.5 | 114.6 | 194.7 | $ 158.6 |
Other | (0.9) | 2.2 | |||||||||
Gross charge-offs | (137.7) | (136.6) | |||||||||
Recoveries | 22.5 | 25.3 | |||||||||
Ending balance | 431.1 | 432.6 | 431.1 | 432.6 | 347 | ||||||
Allowance balance | |||||||||||
Loans individually evaluated for impairment | 26 | 33.7 | 26 | 33.7 | |||||||
Loans collectively evaluated for impairment | 386 | 385.3 | 386 | 385.3 | |||||||
Allowance for loan losses | 431.1 | 432.6 | |||||||||
Other reserves | 44.5 | 43.7 | 44.5 | 43.7 | |||||||
Finance receivables | |||||||||||
Loans individually evaluated for impairment | 172.7 | 221.8 | 172.7 | 221.8 | |||||||
Loans collectively evaluated for impairment | 26,979.8 | 26,964.3 | 26,979.8 | 26,964.3 | |||||||
Ending balance | $ 29,113.9 | $ 29,535.9 | $ 29,113.9 | $ 29,535.9 | 30,518.7 | ||||||
Percent of loans to total loans | 100.00% | 100.00% | 100.00% | 100.00% | |||||||
Gross charge-offs charged directly to allowance for loan losses | $ 45.9 | $ 35.8 | |||||||||
PCI Loans | |||||||||||
Allowance balance | |||||||||||
Loans acquired with deteriorated credit quality | $ 19.1 | $ 13.6 | 19.1 | 13.6 | |||||||
Finance receivables | |||||||||||
Loans acquired with deteriorated credit quality | 1,961.4 | 2,349.8 | 1,961.4 | 2,349.8 | |||||||
Commercial Banking | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning balance | 408.4 | 336.8 | 408.4 | 336.8 | |||||||
Provision for credit losses | 88.7 | 183 | |||||||||
Other | (0.8) | 0.2 | |||||||||
Gross charge-offs | (115.2) | (133.8) | |||||||||
Recoveries | 21.1 | 22.2 | |||||||||
Ending balance | 402.2 | 408.4 | 402.2 | 408.4 | 336.8 | ||||||
Allowance balance | |||||||||||
Loans individually evaluated for impairment | 26 | 33.7 | 26 | 33.7 | |||||||
Loans collectively evaluated for impairment | 368.5 | 367.4 | 368.5 | 367.4 | |||||||
Allowance for loan losses | 402.2 | 408.4 | |||||||||
Other reserves | 44.5 | 43.6 | 44.5 | 43.6 | |||||||
Finance receivables | |||||||||||
Loans individually evaluated for impairment | 172.7 | 221.8 | 172.7 | 221.8 | |||||||
Loans collectively evaluated for impairment | 22,930.9 | 22,227.3 | 22,930.9 | 22,227.3 | |||||||
Ending balance | $ 23,159.3 | $ 22,562.3 | $ 23,159.3 | $ 22,562.3 | |||||||
Percent of loans to total loans | 79.50% | 76.40% | 79.50% | 76.40% | |||||||
Commercial Banking | PCI Loans | |||||||||||
Allowance balance | |||||||||||
Loans acquired with deteriorated credit quality | $ 7.7 | $ 7.3 | $ 7.7 | $ 7.3 | |||||||
Finance receivables | |||||||||||
Loans acquired with deteriorated credit quality | 55.7 | 113.2 | 55.7 | 113.2 | |||||||
Consumer Banking | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning balance | $ 24.2 | $ 10.2 | 24.2 | 10.2 | |||||||
Provision for credit losses | 25.9 | 11.7 | |||||||||
Other | (0.1) | 2 | |||||||||
Gross charge-offs | (22.5) | (2.8) | |||||||||
Recoveries | 1.4 | 3.1 | |||||||||
Ending balance | 28.9 | 24.2 | 28.9 | 24.2 | $ 10.2 | ||||||
Allowance balance | |||||||||||
Loans individually evaluated for impairment | 0 | 0 | 0 | 0 | |||||||
Loans collectively evaluated for impairment | 17.5 | 17.9 | 17.5 | 17.9 | |||||||
Allowance for loan losses | 28.9 | 24.2 | |||||||||
Other reserves | 0 | 0.1 | 0 | 0.1 | |||||||
Finance receivables | |||||||||||
Loans individually evaluated for impairment | 0 | 0 | 0 | 0 | |||||||
Loans collectively evaluated for impairment | 4,048.9 | 4,737 | 4,048.9 | 4,737 | |||||||
Ending balance | $ 5,954.6 | $ 6,973.6 | $ 5,954.6 | $ 6,973.6 | |||||||
Percent of loans to total loans | 20.50% | 23.60% | 20.50% | 23.60% | |||||||
Consumer Banking | PCI Loans | |||||||||||
Allowance balance | |||||||||||
Loans acquired with deteriorated credit quality | $ 11.4 | $ 6.3 | $ 11.4 | $ 6.3 | |||||||
Finance receivables | |||||||||||
Loans acquired with deteriorated credit quality | $ 1,905.7 | $ 2,236.6 | $ 1,905.7 | $ 2,236.6 |
Indemnification Assets (Narrati
Indemnification Assets (Narrative) (Details) | 12 Months Ended | 77 Months Ended | |
Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Aug. 02, 2015USD ($) | |
Indemnification Assets [Line Items] | |||
Number of days before reimbursement approval by FDIC | 60 days | ||
Amount FDIC indemnifies against losses | $ 142,400,000 | $ 341,400,000 | |
SFR | |||
Indemnification Assets [Line Items] | |||
Excess losses reimbursed by FDIC, percent | 80.00% | ||
IndyMac Transaction | |||
Indemnification Assets [Line Items] | |||
Net amortization on indemnification assets | $ 47,000,000 | 22,000,000 | |
Number of components to indemnification program | segment | 3 | ||
Amount FDIC indemnifies against losses | $ 142,400,000 | 341,400,000 | |
Advance on reverse mortgage loan | 134,400,000 | 145,200,000 | |
Cumulative loss submissions and reimbursements | $ 1,800,000 | ||
Reimbursement from FDIC for cumulative losses | 2,900,000 | ||
Agency claims indemnification | 28,900,000 | 108,000,000 | |
Reverse mortgage indemnification released | 77,000,000 | ||
Reverse mortgage indemnification | 0 | 10,400,000 | |
IndyMac Transaction | SFR | |||
Indemnification Assets [Line Items] | |||
First loss tranche | 2,551,000,000 | ||
Final loss threshold | $ 3,826,000,000 | ||
Excess loss reimbursement at final loss threshold, percent | 95.00% | ||
Amount reinbursed by FDIC | 5,700,000 | ||
IndyMac Transaction | SFR, Servicing Obligations Prior to March 2009 | |||
Indemnification Assets [Line Items] | |||
Agency claims indemnification | $ 0 | ||
Reverse mortgage indemnification | 29,000,000 | ||
IndyMac Transaction | Reverse Mortgage Indemnification Assets | |||
Indemnification Assets [Line Items] | |||
Cumulative loss submissions | 11,200,000 | ||
Cumulative reimbursements related to reverse mortgage loans sold to agencies | $ 10,700,000 | ||
IndyMac Transaction | Reverse Mortgage Indemnification Assets | Minimum | |||
Indemnification Assets [Line Items] | |||
FDIC fund advances threshold | 200,000,000 | ||
IndyMac Transaction | Reverse Mortgage Indemnification Assets | Maximum | |||
Indemnification Assets [Line Items] | |||
Amount FDIC indemnifies against losses | 200,000,000 | ||
First Federal Transaction | |||
Indemnification Assets [Line Items] | |||
First loss tranche | $ 932,000,000 | ||
First Federal Transaction | Commercial Loans | |||
Indemnification Assets [Line Items] | |||
Extendable period | 3 years | ||
La Jolla Transaction | |||
Indemnification Assets [Line Items] | |||
FDIC true-up liability | $ 65,100,000 | $ 61,900,000 | |
La Jolla Transaction | Commercial Loans | |||
Indemnification Assets [Line Items] | |||
Extendable period | 3 years | ||
La Jolla Transaction | SFR | |||
Indemnification Assets [Line Items] | |||
Excess losses reimbursed by FDIC, percent | 80.00% | ||
Final loss threshold | $ 1,007,000,000 |
Indemnification Assets (Carryin
Indemnification Assets (Carrying Value of Indemnification Assets and Receivables (Payables) to the FDIC) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Estimated Fair Value and Range of Fair Value for Indemnification Assets [Line Items] | ||
Total | $ 142,400,000 | $ 341,400,000 |
IndyMac Transaction | ||
Schedule of Estimated Fair Value and Range of Fair Value for Indemnification Assets [Line Items] | ||
Loan indemnification | 113,500,000 | 223,000,000 |
Reverse mortgage indemnification | 0 | 10,400,000 |
Agency claims indemnification | 28,900,000 | 108,000,000 |
Total | 142,400,000 | 341,400,000 |
Receivable with the FDIC | 9,200,000 | $ 12,700,000 |
Decrease in carrying value of loan indemnification | 109,500,000 | |
Other adjustments | 53,100,000 | |
Increase in agency claims indemnification | 56,400,000 | |
Reverse mortgage indemnification released | $ 77,000,000 |
Indemnification Assets (Submiss
Indemnification Assets (Submission Of Qualifying Losses For Reimbursement From FDIC) (Details) - IndyMac Transaction - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Qualifying Losses for Reimbursement [Line Items] | ||
Unpaid principal balance | $ 3,196.5 | $ 3,832.1 |
Cumulative losses incurred | 3,800.6 | 3,727.8 |
Cumulative claims | 3,794.7 | 3,722.9 |
Cumulative reimbursement | $ 939.9 | $ 893.7 |
Operating Lease Equipment (Sche
Operating Lease Equipment (Schedule Of Operating Lease Equipment By Type) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Property Subject to or Available for Operating Lease [Line Items] | |||||
Accumulated depreciation | $ 1,000 | $ 900 | |||
Operating lease equipment, net | 6,738.9 | [1] | 7,486.1 | [1] | $ 6,851.7 |
Off-lease equipment | 488.2 | 823.5 | |||
Railcars and locomotives | |||||
Property Subject to or Available for Operating Lease [Line Items] | |||||
Operating lease equipment, net | 6,260.5 | 7,116.5 | |||
Other equipment | |||||
Property Subject to or Available for Operating Lease [Line Items] | |||||
Operating lease equipment, net | $ 478.4 | $ 369.6 | |||
[1] | The following table presents information on assets and liabilities related to Variable Interest Entities (VIEs) that are consolidated by the Company. The difference between VIE total assets and total liabilities represents the Company's interests in those entities, which were eliminated in consolidation. The assets of the consolidated VIEs will be used to settle the liabilities of those entities and, except for the Company's interest in the VIEs, are not available to the creditors of CIT or any affiliates of CIT. |
Operating Lease Equipment (Sc91
Operating Lease Equipment (Schedule Of Future Minimum Lease Rentals Due On Non-Cancelable Operating Leases) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Leases, Operating [Abstract] | |
2,018 | $ 675.7 |
2,019 | 487.2 |
2,020 | 328.8 |
2,021 | 198.6 |
2,022 | 107.9 |
Thereafter | 73.1 |
Total | $ 1,871.3 |
Investment Securities (Schedule
Investment Securities (Schedule Of Investment Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-sale securities | $ 6,168.3 | $ 3,708.2 |
Securities carried at fair value with changes recorded in net income | 0.4 | 283.5 |
Total investment securities | 6,469.9 | 4,491.1 |
Debt securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-sale securities | 6,123.6 | 3,674.1 |
Held-to-maturity securities | 0 | 243 |
Securities carried at fair value with changes recorded in net income | 0.4 | 283.5 |
Equity securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-sale securities | 44.7 | 34.1 |
Equity fund holdings issued by customers during loan work out situations | 42.3 | 16.7 |
Equity securities | FRB and FHLB Securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Held-to-maturity securities | $ 258.9 | 239.7 |
Equity securities | Minimum | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Percentage of non-marketable equity method ownership interets | 3.00% | |
Non-marketable investments | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Total investment securities | $ 301.2 | $ 256.4 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | ||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||
Available-for-sale securities | $ 6,168,300,000 | $ 3,708,200,000 | |||
Realized investment gains excluding losses from OTTI | 33,900,000 | 29,300,000 | $ 8,100,000 | ||
Interest bearing deposits | [1] | 1,440,100,000 | 5,608,500,000 | ||
Estimated fair value of PCI securities | 312,500,000 | 478,900,000 | |||
Par value of PCI securities | 387,600,000 | 615,200,000 | |||
Securities carried at fair value with changes recorded in net income, fair value | 400,000 | 283,500,000 | |||
Securities carried at fair value with changes recorded in net income, amortized cost | 277,500,000 | ||||
Securities carried at fair value with changes recorded in net income, unrealized holding loss | 0 | 700,000 | |||
Securities carried at fair value with changes recorded in net income, unrealized holding gains | 6,700,000 | ||||
Securities carried at fair value with changes recorded in net income, weighted average yield | 41.80% | ||||
OTTI credit-related losses, PCI securities | 1,100,000 | 3,300,000 | $ 2,800,000 | ||
OTTI unrealized losses on non-marketable investments | 0 | ||||
Debt securities | |||||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||
Held-to-maturity securities | 0 | 243,000,000 | |||
Available-for-sale securities | 6,123,600,000 | 3,674,100,000 | |||
Securities carried at fair value with changes recorded in net income, fair value | $ 400,000 | 283,500,000 | |||
Debt securities | Accounting Standards Update 2017-12 | New Accounting Pronouncement, Early Adoption, Effect | |||||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||
Held-to-maturity securities | (207,000,000) | ||||
Available-for-sale securities | $ 207,000,000 | ||||
[1] | The following table presents information on assets and liabilities related to Variable Interest Entities (VIEs) that are consolidated by the Company. The difference between VIE total assets and total liabilities represents the Company's interests in those entities, which were eliminated in consolidation. The assets of the consolidated VIEs will be used to settle the liabilities of those entities and, except for the Company's interest in the VIEs, are not available to the creditors of CIT or any affiliates of CIT. |
Investment Securities (Schedu94
Investment Securities (Schedule Of Interest And Dividend Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Investment Income [Line Items] | |||
Dividends — investments | $ 10.9 | $ 16.7 | $ 10.4 |
Total interest and dividends | 197.5 | 131.9 | 71.2 |
Investments / Reverse Repos | |||
Net Investment Income [Line Items] | |||
Interest income | 128.9 | 82.1 | 43.7 |
Interest-bearing Deposits | |||
Net Investment Income [Line Items] | |||
Interest income | $ 57.7 | $ 33.1 | $ 17.1 |
Investment Securities (Amortize
Investment Securities (Amortized Cost And Fair Value Of Securities Available-For-Sale) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
AFS | ||
Amortized Cost | $ 6,207.7 | $ 3,730.3 |
Gross Unrealized Gains | 25.4 | 17.2 |
Gross Unrealized Losses | (64.8) | (39.3) |
Fair Value | 6,168.3 | 3,708.2 |
Total | ||
Amortized Cost | 3,973.3 | |
Gross Unrealized Gains | 24.1 | |
Gross Unrealized Losses | (43.1) | |
Fair Value | 3,954.3 | |
Mortgage-backed Securities, U.S. government agency securities | ||
HTM | ||
Carrying Value | 110 | |
Gross Unrealized Gains | 0.7 | |
Gross Unrealized Losses | (3.3) | |
Fair Value | 107.4 | |
State and municipal | ||
HTM | ||
Carrying Value | 27.7 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (0.5) | |
Fair Value | 27.2 | |
Foreign government | ||
HTM | ||
Carrying Value | 2.4 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 2.4 | |
Corporate — foreign | ||
HTM | ||
Carrying Value | 102.9 | |
Gross Unrealized Gains | 6.2 | |
Gross Unrealized Losses | 0 | |
Fair Value | 109.1 | |
Debt securities | ||
HTM | ||
Carrying Value | 243 | |
Gross Unrealized Gains | 6.9 | |
Gross Unrealized Losses | (3.8) | |
Fair Value | 246.1 | |
Mortgage-backed Securities, U.S. government agency securities | ||
AFS | ||
Amortized Cost | 5,010.2 | 2,073.6 |
Gross Unrealized Gains | 2.1 | 1.6 |
Gross Unrealized Losses | (62.1) | (32.3) |
Fair Value | 4,950.2 | 2,042.9 |
Mortgage-backed Securities, Non-agency securities | ||
AFS | ||
Amortized Cost | 297.3 | 471.7 |
Gross Unrealized Gains | 21.7 | 15.6 |
Gross Unrealized Losses | (0.5) | (1.8) |
Fair Value | 318.5 | 485.5 |
U.S. government agency obligations | ||
AFS | ||
Amortized Cost | 25 | 649.9 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (0.2) | (3.9) |
Fair Value | 24.8 | 646 |
U.S. Treasury securities | ||
AFS | ||
Amortized Cost | 297.7 | 299.9 |
Gross Unrealized Gains | 0.2 | 0 |
Gross Unrealized Losses | (0.2) | (0.4) |
Fair Value | 297.7 | 299.5 |
Supranational securities | ||
AFS | ||
Amortized Cost | 449.8 | 200.2 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (0.3) | 0 |
Fair Value | 449.5 | 200.2 |
State and municipal | ||
AFS | ||
Amortized Cost | 16.2 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (0.4) | |
Fair Value | 15.8 | |
Corporate — foreign | ||
AFS | ||
Amortized Cost | 65.7 | |
Gross Unrealized Gains | 1.4 | |
Gross Unrealized Losses | 0 | |
Fair Value | 67.1 | |
Debt securities | ||
AFS | ||
Amortized Cost | 6,161.9 | 3,695.3 |
Gross Unrealized Gains | 25.4 | 17.2 |
Gross Unrealized Losses | (63.7) | (38.4) |
Fair Value | 6,123.6 | 3,674.1 |
HTM | ||
Carrying Value | 0 | 243 |
Equity securities | ||
AFS | ||
Amortized Cost | 45.8 | 35 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1.1) | (0.9) |
Fair Value | $ 44.7 | $ 34.1 |
Investment Securities (Amorti96
Investment Securities (Amortized Cost And Fair Value Of Debt Securities Available-For-Sale By Contractual Maturity Dates) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Total, Amortized Cost | $ 6,161.9 |
Total, Fair Value | $ 6,123.6 |
Total, Weighted Average Yield | 2.54% |
Mortgage-backed Securities, U.S. government agency securities | |
Schedule of Available-for-sale Securities [Line Items] | |
After 5 but within 10 years, Amortized Cost | $ 198.7 |
Due after 10 years, Amortized Cost | 4,811.5 |
Total, Amortized Cost | 5,010.2 |
After 5 but within 10 years, Fair Value | 196.9 |
Due after 10 years, Fair Value | 4,753.3 |
Total, Fair Value | $ 4,950.2 |
After 5 but within 10 years, Weighted Average Yield | 2.05% |
Due after 10 years, Weighted Average Yield | 2.50% |
Total, Weighted Average Yield | 2.48% |
Mortgage-backed Securities, Non-agency securities | |
Schedule of Available-for-sale Securities [Line Items] | |
After 1 but within 5 years, Amortized Cost | $ 12.5 |
After 5 but within 10 years, Amortized Cost | 6.9 |
Due after 10 years, Amortized Cost | 277.9 |
Total, Amortized Cost | 297.3 |
After 1 but within 5 years, Fair Value | 12.5 |
After 5 but within 10 years, Fair Value | 7.4 |
Due after 10 years, Fair Value | 298.6 |
Total, Fair Value | $ 318.5 |
After 1 but within 5 years, Weighted Average Yield | 5.16% |
After 5 but within 10 years, Weighted Average Yield | 4.56% |
Due after 10 years, Weighted Average Yield | 5.72% |
Total, Weighted Average Yield | 5.67% |
U.S. government agency obligations | |
Schedule of Available-for-sale Securities [Line Items] | |
After 1 but within 5 years, Amortized Cost | $ 25 |
Total, Amortized Cost | 25 |
After 1 but within 5 years, Fair Value | 24.8 |
Total, Fair Value | $ 24.8 |
After 1 but within 5 years, Weighted Average Yield | 2.14% |
Total, Weighted Average Yield | 2.14% |
U.S. Treasury securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Due within 1 year, Amortized Cost | $ 199.3 |
After 5 but within 10 years, Amortized Cost | 98.4 |
Total, Amortized Cost | 297.7 |
Due within 1 year, Fair Value | 199.1 |
After 5 but within 10 years, Fair Value | 98.6 |
Total, Fair Value | $ 297.7 |
Due within 1 year, Weighted Average Yield | 1.19% |
After 5 but within 10 years, Weighted Average Yield | 2.44% |
Total, Weighted Average Yield | 1.60% |
Supranational securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Due within 1 year, Amortized Cost | $ 399.8 |
After 1 but within 5 years, Amortized Cost | 50 |
Total, Amortized Cost | 449.8 |
Due within 1 year, Fair Value | 399.8 |
After 1 but within 5 years, Fair Value | 49.7 |
Total, Fair Value | $ 449.5 |
Due within 1 year, Weighted Average Yield | 1.19% |
After 1 but within 5 years, Weighted Average Yield | 2.02% |
Total, Weighted Average Yield | 1.28% |
State and municipal | |
Schedule of Available-for-sale Securities [Line Items] | |
Due within 1 year, Amortized Cost | $ 0.1 |
After 1 but within 5 years, Amortized Cost | 0.1 |
After 5 but within 10 years, Amortized Cost | 0.3 |
Due after 10 years, Amortized Cost | 15.7 |
Total, Amortized Cost | 16.2 |
Due within 1 year, Fair Value | 0.1 |
After 1 but within 5 years, Fair Value | 0.1 |
After 5 but within 10 years, Fair Value | 0.3 |
Due after 10 years, Fair Value | 15.3 |
Total, Fair Value | $ 15.8 |
Due within 1 year, Weighted Average Yield | 2.36% |
After 1 but within 5 years, Weighted Average Yield | 2.56% |
After 5 but within 10 years, Weighted Average Yield | 2.70% |
Due after 10 years, Weighted Average Yield | 2.35% |
Total, Weighted Average Yield | 2.36% |
Corporate — foreign | |
Schedule of Available-for-sale Securities [Line Items] | |
After 1 but within 5 years, Amortized Cost | $ 65.7 |
Total, Amortized Cost | 65.7 |
After 1 but within 5 years, Fair Value | 67.1 |
Total, Fair Value | $ 67.1 |
After 1 but within 5 years, Weighted Average Yield | 6.12% |
Total, Weighted Average Yield | 6.12% |
Investment Securities (Schedu97
Investment Securities (Schedule Of Debt Securities AFS - Estimated Unrealized Losses) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
AFS | ||
Less than 12 months, Fair Value | $ 4,067.8 | $ 2,525.8 |
Less than 12 months, Gross Unrealized Loss | (31.8) | (38.4) |
12 months or greater, Fair Value | 1,209.9 | 29.6 |
12 months or greater, Gross Unrealized Loss | (33) | (0.9) |
HTM | ||
Less than 12 months, Fair Value | 72 | |
Less than 12 months, Gross Unrealized Losses | (1.8) | |
12 months or greater, Fair Value | 49.1 | |
12 months or greater, Gross Unrealized Losses | (2) | |
Total | ||
Less than 12 months, Fair Value | 2,597.8 | |
Less than 12 months, Gross Unrealized Losses | (40.2) | |
12 months or greater, Fair Value | 78.7 | |
12 months or greater, Gross Unrealized Losses | (2.9) | |
Mortgage-backed Securities, U.S. government agency securities | ||
HTM | ||
Less than 12 months, Fair Value | 68.2 | |
Less than 12 months, Gross Unrealized Losses | (1.7) | |
12 months or greater, Fair Value | 26.7 | |
12 months or greater, Gross Unrealized Losses | (1.6) | |
State and municipal | ||
HTM | ||
Less than 12 months, Fair Value | 3.8 | |
Less than 12 months, Gross Unrealized Losses | (0.1) | |
12 months or greater, Fair Value | 22.4 | |
12 months or greater, Gross Unrealized Losses | (0.4) | |
Mortgage-backed Securities, U.S. government agency securities | ||
AFS | ||
Less than 12 months, Fair Value | 3,492.2 | 1,589.6 |
Less than 12 months, Gross Unrealized Loss | (30.9) | (31.8) |
12 months or greater, Fair Value | 1,151.4 | 13.8 |
12 months or greater, Gross Unrealized Loss | (31.2) | (0.5) |
Mortgage-backed Securities, Non-agency securities | ||
AFS | ||
Less than 12 months, Fair Value | 2.1 | 56.5 |
Less than 12 months, Gross Unrealized Loss | 0 | (1.4) |
12 months or greater, Fair Value | 0.4 | 15.8 |
12 months or greater, Gross Unrealized Loss | (0.5) | (0.4) |
U.S. government agency obligations | ||
AFS | ||
Less than 12 months, Fair Value | 24.8 | 546.1 |
Less than 12 months, Gross Unrealized Loss | (0.2) | (3.9) |
12 months or greater, Fair Value | 0 | 0 |
12 months or greater, Gross Unrealized Loss | 0 | 0 |
U.S. Treasury securities | ||
AFS | ||
Less than 12 months, Fair Value | 199.1 | 299.5 |
Less than 12 months, Gross Unrealized Loss | (0.2) | (0.4) |
12 months or greater, Fair Value | 0 | 0 |
12 months or greater, Gross Unrealized Loss | 0 | 0 |
State and municipal | ||
AFS | ||
Less than 12 months, Fair Value | 0 | |
Less than 12 months, Gross Unrealized Loss | 0 | |
12 months or greater, Fair Value | 13.6 | |
12 months or greater, Gross Unrealized Loss | (0.4) | |
Supranational securities | ||
AFS | ||
Less than 12 months, Fair Value | 349.5 | |
Less than 12 months, Gross Unrealized Loss | (0.3) | |
12 months or greater, Fair Value | 0 | |
12 months or greater, Gross Unrealized Loss | 0 | |
Debt securities | ||
AFS | ||
Less than 12 months, Fair Value | 4,067.7 | 2,491.7 |
Less than 12 months, Gross Unrealized Loss | (31.6) | (37.5) |
12 months or greater, Fair Value | 1,165.4 | 29.6 |
12 months or greater, Gross Unrealized Loss | (32.1) | (0.9) |
Equity securities | ||
AFS | ||
Less than 12 months, Fair Value | 0.1 | 34.1 |
Less than 12 months, Gross Unrealized Loss | (0.2) | (0.9) |
12 months or greater, Fair Value | 44.5 | 0 |
12 months or greater, Gross Unrealized Loss | $ (0.9) | $ 0 |
Investment Securities (Changes
Investment Securities (Changes In Accretable Yield For Purchased Credit-Impaired Securities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Beginning Balance(1) | $ 165 | $ 189 | $ 204.4 |
Accretion into interest income | (23.4) | (29.2) | (13.5) |
Reclassifications from non-accretable difference due to increasing cash flows | 2.4 | 4.7 | 0 |
Reclassifications to non-accretable difference due to decreasing cash flows | (2.2) | 0.5 | (1.7) |
Disposals | (40.1) | 0 | (0.2) |
Ending balance | $ 101.7 | $ 165 | $ 189 |
Investment Securities (Carrying
Investment Securities (Carrying Value And Fair Value Of Securities Held-To-Maturity) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Mortgage-backed Securities, U.S. government agency securities | |
Schedule of Held-to-maturity Securities [Line Items] | |
Carrying Value | $ 110 |
Gross Unrealized Gains | 0.7 |
Gross Unrealized Losses | (3.3) |
Fair Value | 107.4 |
State and municipal | |
Schedule of Held-to-maturity Securities [Line Items] | |
Carrying Value | 27.7 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | (0.5) |
Fair Value | 27.2 |
Foreign government | |
Schedule of Held-to-maturity Securities [Line Items] | |
Carrying Value | 2.4 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | 0 |
Fair Value | 2.4 |
Corporate — foreign | |
Schedule of Held-to-maturity Securities [Line Items] | |
Carrying Value | 102.9 |
Gross Unrealized Gains | 6.2 |
Gross Unrealized Losses | 0 |
Fair Value | 109.1 |
Debt securities | |
Schedule of Held-to-maturity Securities [Line Items] | |
Carrying Value | 243 |
Gross Unrealized Gains | 6.9 |
Gross Unrealized Losses | (3.8) |
Fair Value | $ 246.1 |
Other Assets (Components Of Oth
Other Assets (Components Of Other Assets) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Other Assets [Line Items] | ||
Tax credit investments and investments in unconsolidated subsidiaries | $ 247,600,000 | $ 220,200,000 |
Counterparty receivables | 241,300,000 | 437,300,000 |
Current and deferred federal and state tax assets | 205,200,000 | 201,300,000 |
Property, furniture and fixtures | 173,900,000 | 191,100,000 |
Indemnification assets | 142,400,000 | 341,400,000 |
Intangible assets | 113,000,000 | 140,700,000 |
Other | 472,100,000 | 585,000,000 |
Total other assets | 1,595,500,000 | 2,117,000,000 |
Affordable housing investments | 182,800,000 | 151,300,000 |
Pre-tax losses from affodable housing investments | 12,100,000 | |
Amortization expense on affordable housing investments | 50,800,000 | 0 |
Tax benefits from affordable housing investments | 29,600,000 | 20,600,000 |
Tax credits from affordable housing investments | 22,600,000 | 15,900,000 |
Liability for unfuded commitments from affordable housing investments | 66,600,000 | 62,300,000 |
Single Family Mortgage Loans | ||
Schedule Of Other Assets [Line Items] | ||
Loans serviced for others | $ 34,100,000 | $ 55,100,000 |
Deposits (Schedule Of Rates And
Deposits (Schedule Of Rates And Maturities Of Deposits) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deposits, no stated maturity, Amount | ||
Non-interest-bearing checking | $ 1,352 | |
Interest-bearing checking | 2,653.3 | |
Money market | 5,075.5 | |
Savings | 5,986.7 | |
Other | 153.7 | |
Total checking and savings deposits | 15,221.2 | |
Certificates of deposit, remaining contractual maturity, Amount | ||
Within one year | 7,832.5 | |
One to two years | 3,069.7 | |
Two to three years | 1,619.8 | |
Three to four years | 633.2 | |
Four to five years | 167.1 | |
Over five years | 1,021.5 | |
Total certificates of deposit | 14,343.8 | |
Purchase accounting adjustments | 4.3 | |
Total Deposits | $ 29,569.3 | $ 32,304.3 |
Deposits — no stated maturity, Rate | ||
Interest-bearing checking | 0.59% | |
Money market | 0.85% | |
Savings | 1.12% | |
Certificates of deposit, remaining contractual maturity, Rate | ||
Within one year | 1.27% | |
One to two years | 1.94% | |
Two to three years | 2.23% | |
Three to four years | 2.40% | |
Four to five years | 2.35% | |
Over five years | 3.32% | |
Total certificates of deposit | 1.73% |
Deposits (Schedule Of Certifica
Deposits (Schedule Of Certificates Of Deposit $100 Thousand Or More) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
U.S. certificates of deposits: | ||
Three months or less | $ 1,414.6 | $ 1,725.4 |
After three months through six months | 1,519 | 1,902.6 |
After six months through twelve months | 2,825.3 | 2,907.7 |
After twelve months | 5,713.4 | 7,013.4 |
Total | $ 11,472.3 | $ 13,549.1 |
Borrowings (Schedule Of Long-Te
Borrowings (Schedule Of Long-Term Borrowings) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Total Borrowings | $ 8,974.4 | $ 14,935.5 |
CIT Group Inc. | ||
Debt Instrument [Line Items] | ||
Total Borrowings | 3,737.5 | 10,599 |
Subsidiaries | ||
Debt Instrument [Line Items] | ||
Total Borrowings | 5,236.9 | |
Senior Unsecured | ||
Debt Instrument [Line Items] | ||
Total Borrowings | 3,737.5 | 10,599 |
Senior Unsecured | CIT Group Inc. | ||
Debt Instrument [Line Items] | ||
Total Borrowings | 3,737.5 | |
Senior Unsecured | Subsidiaries | ||
Debt Instrument [Line Items] | ||
Total Borrowings | 0 | |
Structured financings | ||
Debt Instrument [Line Items] | ||
Total Borrowings | 1,541.4 | 1,925.7 |
Structured financings | CIT Group Inc. | ||
Debt Instrument [Line Items] | ||
Total Borrowings | 0 | |
Structured financings | Subsidiaries | ||
Debt Instrument [Line Items] | ||
Total Borrowings | 1,541.4 | |
FHLB advances | ||
Debt Instrument [Line Items] | ||
Total Borrowings | 3,695.5 | $ 2,410.8 |
FHLB advances | CIT Group Inc. | ||
Debt Instrument [Line Items] | ||
Total Borrowings | 0 | |
FHLB advances | Subsidiaries | ||
Debt Instrument [Line Items] | ||
Total Borrowings | $ 3,695.5 |
Borrowings (Schedule Of Contrac
Borrowings (Schedule Of Contractual Maturities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
2,018 | $ 1,626.3 | $ 2,321.7 |
2,019 | 3,299.2 | |
2,020 | 1,656.1 | |
2,021 | 63.4 | |
2,022 | 1,208 | |
Thereafter | 1,161.4 | |
Contractual Maturities | 9,014.4 | |
Senior Unsecured | ||
Debt Instrument [Line Items] | ||
2,018 | 0 | |
2,019 | 1,383 | |
2,020 | 435.6 | |
2,021 | 0 | |
2,022 | 1,150 | |
Thereafter | 801.4 | |
Contractual Maturities | 3,770 | |
Structured financings | ||
Debt Instrument [Line Items] | ||
2,018 | 226.3 | |
2,019 | 770.7 | |
2,020 | 70.5 | |
2,021 | 63.4 | |
2,022 | 58 | |
Thereafter | 360 | |
Contractual Maturities | 1,548.9 | |
FHLB advances | ||
Debt Instrument [Line Items] | ||
2,018 | 1,400 | |
2,019 | 1,145.5 | |
2,020 | 1,150 | |
2,021 | 0 | |
2,022 | 0 | |
Thereafter | 0 | |
Contractual Maturities | $ 3,695.5 |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) | Sep. 28, 2017USD ($) | May 04, 2017USD ($) | Apr. 18, 2017USD ($) | Dec. 31, 2017USD ($)subsidiary | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 15, 2017USD ($) | Apr. 04, 2017USD ($) | Apr. 03, 2017USD ($)subsidiary | Feb. 28, 2017USD ($) | Jan. 31, 2017USD ($) |
Debt Instrument [Line Items] | |||||||||||
Tier 1 capital minimum ratio | 7.25% | 6.625% | |||||||||
Number of domestic operating subsidiaries of which the company is a guarantor | subsidiary | 8 | 9 | |||||||||
Minimum guarantor asset coverage ratio | 1.25 | ||||||||||
Debt redeemed | $ 4,840,000,000 | ||||||||||
Premium to redemption of debt | $ 98,000,000 | ||||||||||
Loss on debt extinguishment | $ 220,000,000 | $ 12,500,000 | $ 1,500,000 | ||||||||
Percent of purchase price to principal amount which holders of debt can require company to repurchase debt upon a change in control triggering event | 101.00% | ||||||||||
Pledged assets | $ 28,200,000,000 | ||||||||||
Pledged assets, collateral amount | 13,100,000,000 | ||||||||||
Financing availability with the FHLB | 5,200,000,000 | ||||||||||
Financing unused and available with the FHLB | 1,400,000,000 | ||||||||||
Outstanding borrowings | 1,541,400,000 | 1,925,700,000 | |||||||||
HMBS | OneWest Bank | Variable Interest Entities | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding borrowings | $ 140,300,000 | 160,200,000 | |||||||||
4.250% Senior Unsecured Notes Due August 2017 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Percent of principal to be redeemed | 100.00% | ||||||||||
Tender Offer | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt redeemed | $ 861,200,000 | ||||||||||
Debt purchased | 800,000,000 | ||||||||||
Premium on debt purchased | 50,600,000 | $ 59,000,000 | |||||||||
Accrued interest on debt purchased | 9,300,000 | 9,000,000 | |||||||||
5.500% Series C Unsecured Notes Due February 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt redeemed | 398,000,000 | 1,040,000,000 | |||||||||
Debt purchased | $ 969,000,000 | ||||||||||
5.375% Senior Unsecured Notes Due May 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt redeemed | 302,000,000 | ||||||||||
5.000% Senior Senior Unsecured Notes Due August 2022 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt redeemed | $ 100,000,000 | ||||||||||
Structured financings | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Weighted average interest rate for debt | 3.75% | ||||||||||
6.0% Senior Unsecured Debt Due in 2036 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate | 6.00% | ||||||||||
Carrying value of debt | $ 39,600,000 | ||||||||||
Par value of debt | 51,000,000 | ||||||||||
Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Par value of debt | $ 3,718,600,000 | ||||||||||
Senior Notes | 4.250% Senior Unsecured Notes Due August 2017 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt redeemed | $ 1,725,800,000 | ||||||||||
Stated interest rate | 4.25% | ||||||||||
Senior Notes | 5.250% Senior Unsecured Notes Due March 2018 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt redeemed | $ 1,465,000,000 | ||||||||||
Stated interest rate | 5.25% | ||||||||||
Senior Notes | 6.625% Series C Unsecured Notes Due April 2018 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt redeemed | $ 695,000,000 | ||||||||||
Stated interest rate | 6.625% | ||||||||||
Senior Notes | 5.000% Senior Unsecured Notes Due May 2018 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt redeemed | $ 955,900,000 | ||||||||||
Stated interest rate | 5.00% | ||||||||||
Senior Notes | 5.500% Series C Unsecured Notes Due February 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate | 5.50% | 5.50% | 5.50% | 5.50% | |||||||
Par value of debt | $ 383,000,000 | ||||||||||
Senior Notes | 5.375% Senior Unsecured Notes Due May 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate | 5.375% | 5.375% | 5.375% | ||||||||
Par value of debt | $ 435,600,000 | ||||||||||
Senior Notes | 5.000% Senior Senior Unsecured Notes Due August 2022 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate | 5.00% | 5.00% | 5.00% | ||||||||
Par value of debt | $ 1,150,000,000 | ||||||||||
Discontinued Operation | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Current borrowings of discontinued operations | 268,200,000 | 1,571,000,000 | |||||||||
Commercial Air | Discontinued Operations, Disposed of by Sale | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Current borrowings of discontinued operations | $ 0 | 1,204,600,000 | |||||||||
Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Minimum guarantor asset coverage ratio | 1.5 | ||||||||||
Principal as a percent of maximum claim amount for which company is required to repurchase loans | 98.00% | ||||||||||
Minimum | Structured financings | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Weighted average interest rate for debt | 0.55% | ||||||||||
Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Minimum guarantor asset coverage ratio | 1 | ||||||||||
Maximum | Tender Offer | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt purchased | $ 800,000,000 | $ 950,000,000 | |||||||||
Maximum | Structured financings | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Weighted average interest rate for debt | 5.50% | ||||||||||
Weighted Average | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate for FHLB advances | 1.56% | ||||||||||
Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total commitment | $ 750,000,000 | $ 1,400,000,000 | $ 1,500,000,000 | ||||||||
Outstanding borrowings | 0 | 0 | |||||||||
Amount available to be drawn | $ 695,000,000 | ||||||||||
Revolving Credit Facility | Commercial Air | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total commitment | $ 750,000,000 | ||||||||||
Revolving Credit Facility | Commercial Air | Discontinued Operations, Disposed of by Sale | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total commitment | $ 1,400,000,000 | ||||||||||
Minimum consolidated net worth covenant | $ 6,000,000,000 | ||||||||||
Tier 1 capital minimum ratio | 9.00% | ||||||||||
Revolving Credit Facility | LIBOR | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Applicable margin | 2.00% | ||||||||||
Revolving Credit Facility | Base Rate | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Applicable margin | 1.00% | ||||||||||
Letter of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Amount available to be drawn | $ 55,000,000 | ||||||||||
Amount of financing being utilized from FHLB | 87,800,000 | ||||||||||
FRB Discount Window | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding borrowings | 0 | $ 0 | |||||||||
Loans | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Pledged assets, collateral amount | 11,600,000,000 | ||||||||||
Operating Lease Assets | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Pledged assets, collateral amount | 1,200,000,000 | ||||||||||
Cash | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Pledged assets, collateral amount | 200,000,000 | ||||||||||
Securities | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Pledged assets, collateral amount | $ 100,000,000 |
Borrowings (Schedule Of Senior
Borrowings (Schedule Of Senior Unsecured Notes) (Details) - Senior Notes - USD ($) | Dec. 31, 2017 | Sep. 15, 2017 | Apr. 18, 2017 | Apr. 04, 2017 |
Debt Instrument [Line Items] | ||||
Rate (%) | 4.793% | |||
Par Value | $ 3,718,600,000 | |||
February 1, 2019 | ||||
Debt Instrument [Line Items] | ||||
Rate (%) | 5.50% | 5.50% | 5.50% | 5.50% |
Par Value | $ 383,000,000 | |||
February 1, 2019 | ||||
Debt Instrument [Line Items] | ||||
Rate (%) | 3.875% | |||
Par Value | $ 1,000,000,000 | |||
May 1, 2020 | ||||
Debt Instrument [Line Items] | ||||
Rate (%) | 5.375% | 5.375% | 5.375% | |
Par Value | $ 435,600,000 | |||
August 1, 2022 | ||||
Debt Instrument [Line Items] | ||||
Rate (%) | 5.00% | 5.00% | 5.00% | |
Par Value | $ 1,150,000,000 | |||
August 1, 2023 | ||||
Debt Instrument [Line Items] | ||||
Rate (%) | 5.00% | |||
Par Value | $ 750,000,000 |
Borrowings (Schedule Of FHLB Ad
Borrowings (Schedule Of FHLB Advances With Pledged Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
FHLB Advances | $ 3,695.5 | $ 2,410.8 |
Pledged Assets(1) | $ 6,154.1 | $ 6,389.7 |
Borrowings (Schedule Of Structu
Borrowings (Schedule Of Structured Financings And Pledged Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowing | $ 1,541.4 | $ 1,925.7 |
Pledged Assets | 4,110.6 | 4,148.3 |
Total Return Swap (TRS) | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowing | 493 | |
Pledged Assets | 818.6 | |
Commercial Banking | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowing | 1,541.4 | 1,809.9 |
Pledged Assets | 4,110.6 | 3,935.7 |
Non-Strategic Portfolios | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowing | 0 | 115.8 |
Pledged Assets | 0 | 212.6 |
Disposal Group, Held-for-sale, Not Discontinued Operations | Sale of Nacco | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Secured debt related to sale of business | 250.3 | |
Pledged assets related to sale of business | 421.9 | |
Business Capital | Commercial Banking | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowing | 768.8 | 949.8 |
Pledged Assets | 2,838.6 | 2,608 |
Rail | Commercial Banking | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowing | 772.6 | 860.1 |
Pledged Assets | 1,272 | 1,327.5 |
Commercial Finance | Commercial Banking | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowing | 0 | 0 |
Pledged Assets | $ 0 | $ 0.2 |
Borrowings (Assets and Liabilit
Borrowings (Assets and Liabilities in Unconsolidated VIEs) (Details) - Unconsolidated VIEs - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt securities | ||
Variable Interest Entity [Line Items] | ||
Total Assets | $ 5,269 | $ 2,921.9 |
Maximum loss exposure | 5,269 | 2,921.9 |
Debt securities | Agency securities | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 4,950.2 | 2,152.9 |
Debt securities | Non agency securities — Other servicer | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 318.8 | 769 |
Equity securities | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 38.6 | 11.4 |
Equity securities | Tax credit equity investments | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 198.8 | 167.7 |
Partnership Investment | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 237.4 | 179.1 |
Total Liabilities | 66.6 | 62.3 |
Maximum loss exposure | 237.4 | 179.1 |
Partnership Investment | Commitments to tax credit investments | ||
Variable Interest Entity [Line Items] | ||
Total Liabilities | $ 66.6 | $ 62.3 |
Derivative Financial Instrum110
Derivative Financial Instruments (Fair And Notional Values Of Derivative Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 15,264.6 | $ 13,128.8 |
Asset Fair Value | 68.7 | 111.6 |
Liability Fair Value | (87) | (68.8) |
Total Return Swap (TRS) | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 182.4 | 587.5 |
Qualifying Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 977.3 | 817.9 |
Asset Fair Value | 0.2 | 16.9 |
Liability Fair Value | (18.7) | 0 |
Qualifying Hedges | Foreign currency forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 977.3 | 817.9 |
Asset Fair Value | 0.2 | 16.9 |
Liability Fair Value | (18.7) | 0 |
Non-Qualifying Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 14,287.3 | 12,310.9 |
Asset Fair Value | 68.5 | 94.7 |
Liability Fair Value | (68.3) | (68.8) |
Non-Qualifying Hedges | Foreign currency forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,375.5 | 1,329.8 |
Asset Fair Value | 6.9 | 30.2 |
Liability Fair Value | (14.9) | (6) |
Non-Qualifying Hedges | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 7,112 | 5,309.2 |
Asset Fair Value | 60.8 | 63 |
Liability Fair Value | (38.6) | (50.1) |
Non-Qualifying Hedges | Options | Written | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,744.3 | 2,626.5 |
Asset Fair Value | 0 | 0.1 |
Liability Fair Value | (0.7) | (1) |
Non-Qualifying Hedges | Options | Purchased | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,571.5 | 2,129.6 |
Asset Fair Value | 0.7 | 1 |
Liability Fair Value | 0 | (0.1) |
Non-Qualifying Hedges | Total Return Swap (TRS) | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 182.4 | 587.5 |
Asset Fair Value | 0 | 0 |
Liability Fair Value | (14.1) | (11.3) |
Non-Qualifying Hedges | Equity Warrants | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0.8 | 1 |
Asset Fair Value | 0 | 0.2 |
Liability Fair Value | 0 | 0 |
Non-Qualifying Hedges | Interest Rate Lock Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 7.7 | 20.7 |
Asset Fair Value | 0.1 | 0.1 |
Liability Fair Value | 0 | (0.1) |
Non-Qualifying Hedges | Forward sale commitments on agency MBS | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 8 | 39 |
Asset Fair Value | 0 | 0.1 |
Liability Fair Value | 0 | 0 |
Non-Qualifying Hedges | Credit derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 285.1 | 267.6 |
Asset Fair Value | 0 | 0 |
Liability Fair Value | $ 0 | $ (0.2) |
Derivative Financial Instrum111
Derivative Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 07, 2016 | |
Derivative [Line Items] | |||||
Notional amount of derivative | $ 15,264.6 | $ 13,128.8 | $ 15,264.6 | $ 13,128.8 | |
Total Return Swap (TRS) | |||||
Derivative [Line Items] | |||||
Unutilized portion of facility accounted for as a derivative | 625 | 625 | 625 | 625 | |
Notional amount of derivative | 182.4 | 587.5 | 182.4 | 587.5 | |
Actual adjusted qualifying borrowing outstanding | 442.6 | 474.8 | 442.6 | 474.8 | |
Maximum aggregate facility commitment amounts | 1,062.3 | 1,062.3 | |||
Liability recorded based on Company's valuation | $ 14.1 | 11.3 | 14.1 | 11.3 | |
Increase (decrease in liability) | $ 2.8 | $ (43.6) | |||
Present value of remaining facility fee | $ 280 | ||||
Decrease in liability associated with TRS transaction | 37 | ||||
Pretax charge | $ 245 | ||||
Fixed facility fee | 2.85% |
Derivative Financial Instrum112
Derivative Financial Instruments (Offsetting Of Derivative Assets And Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative assets, Gross Amount of Recognized Assets (Liabilities) | $ 68.7 | $ 111.6 |
Derivative assets, Gross Amount Offset in the Consolidated Balance Sheet | 0 | 0 |
Derivative assets, Net Amount Presented in the Consolidated Balance Sheet | 68.7 | 111.6 |
Derivative assets, Gross Amounts not offset in the Consolidated Balance Sheet, Derivative Financial Instruments | (18.7) | (30.9) |
Derivative assets, Gross Amounts not offset in the Consolidated Balance Sheet, Cash Collateral Pledged/(Received) | (8.4) | (48.7) |
Derivative assets, Gross Amounts not offset in the Consolidated Balance Sheet, Net Amount | 41.6 | 32 |
Derivative liabilities, Gross Amount of Recognized Assets (Liabilities) | (87) | (68.8) |
Derivative liabilities, Gross Amount Offset in the Consolidated Balance Sheet | 0 | 0 |
Derivative Liability, Net Amount Presented in the Consolidated Balance Sheet | (87) | (68.8) |
Derivative liabilities, Gross Amounts not offset in the Consolidated Balance Sheet, Derivative Financial Instruments | 18.7 | 30.9 |
Derivative liabilities, Gross Amounts not offset in the Consolidated Balance Sheet, Cash Collateral Pledged/(Received) | 23 | 5 |
Derivative liabilities, Gross Amounts not offset in the Consolidated Balance Sheet, Net Amount | $ (45.3) | $ (32.9) |
Derivative Financial Instrum113
Derivative Financial Instruments (Derivative Instrument Gains And Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Total Return Swap (TRS) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instrument - income statement impact | $ (2.8) | $ 43.6 | |
Non-Qualifying Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instrument - income statement impact | (28.7) | 80.8 | $ 92.5 |
Non-Qualifying Hedges | Interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instrument - income statement impact | 8.5 | 7.9 | 4.6 |
Non-Qualifying Hedges | Interest rate options | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instrument - income statement impact | 0.4 | 0.6 | 1.6 |
Non-Qualifying Hedges | Foreign currency forward contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instrument - income statement impact | (34.2) | 26.2 | 116.5 |
Non-Qualifying Hedges | Equity Warrants | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instrument - income statement impact | (0.2) | (0.2) | 0.2 |
Non-Qualifying Hedges | Total Return Swap (TRS) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instrument - income statement impact | (2.8) | 43.6 | (30.4) |
Non-Qualifying Hedges | Interest Rate Lock Commitments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instrument - income statement impact | 0.1 | (0.2) | 0 |
Non-Qualifying Hedges | Forward sale commitments on agency MBS | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instrument - income statement impact | (0.4) | 1.1 | 0 |
Non-Qualifying Hedges | Credit derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instrument - income statement impact | $ (0.1) | $ 1.8 | $ 0 |
Derivative Financial Instrum114
Derivative Financial Instruments (Changes In AOCI Relating To Derivatives) (Details) - Qualifying Hedges - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives — effective portion reclassified from AOCI to income | $ 13.4 | $ 1.8 | $ 33.8 |
Total income statement impact | 13.4 | 1.8 | 33.8 |
Derivatives — effective portion recorded in OCI | (74.7) | 2.7 | 128.4 |
Total change in OCI for period | (88.1) | 0.9 | 94.6 |
Foreign currency forward contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives — effective portion reclassified from AOCI to income | 13.4 | 1.8 | 33.8 |
Total income statement impact | 13.4 | 1.8 | 33.8 |
Derivatives — effective portion recorded in OCI | (74.7) | 2.7 | 128.4 |
Total change in OCI for period | $ (88.1) | $ 0.9 | $ 94.6 |
Other Liabilities (Components O
Other Liabilities (Components Of Other Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other Liabilities Disclosure [Abstract] | ||
Accrued expenses and accounts payable | $ 584.8 | $ 580.4 |
Current and deferred taxes payable | 204.3 | 250.6 |
Fair value of derivative financial instruments, and other | 87.5 | 69 |
Accrued interest payable | 86.6 | 181.2 |
Other | 473.9 | 816.4 |
Total other liabilities | 1,437.1 | 1,897.6 |
Unsettled investment security purchased | $ 0 | $ 201.2 |
Fair Value (Assets And Liabilit
Fair Value (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities AFS | $ 6,123.6 | |
Securities carried at fair value with changes recorded in net income | 0.4 | $ 283.5 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities AFS | 6,123.6 | 3,674.1 |
Securities carried at fair value with changes recorded in net income | 0.4 | 283.5 |
Equity Securities AFS | 44.7 | 34.1 |
Total Assets | 6,237.4 | 4,103.3 |
Consideration holdback liability | (46) | (47.2) |
FDIC True-up Liability | (65.1) | (61.9) |
Total Liabilities | (198.1) | (177.9) |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities AFS | 199 | 200.1 |
Securities carried at fair value with changes recorded in net income | 0 | 0 |
Equity Securities AFS | 0.2 | 0.3 |
Total Assets | 199.2 | 200.4 |
Consideration holdback liability | 0 | 0 |
FDIC True-up Liability | 0 | 0 |
Total Liabilities | 0 | 0 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities AFS | 5,538.8 | 2,988.5 |
Securities carried at fair value with changes recorded in net income | 0 | 0 |
Equity Securities AFS | 44.5 | 33.8 |
Total Assets | 5,651.9 | 3,133.9 |
Consideration holdback liability | 0 | 0 |
FDIC True-up Liability | 0 | 0 |
Total Liabilities | (72.9) | (57.3) |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities AFS | 385.8 | 485.5 |
Securities carried at fair value with changes recorded in net income | 0.4 | 283.5 |
Equity Securities AFS | 0 | 0 |
Total Assets | 386.3 | 769 |
Consideration holdback liability | (46) | (47.2) |
FDIC True-up Liability | (65.1) | (61.9) |
Total Liabilities | (125.2) | (120.6) |
Non-Qualifying Hedges | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets at fair value | 68.5 | 94.7 |
Derivative liabilities at fair value | (68.3) | (68.8) |
Non-Qualifying Hedges | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets at fair value | 0 | 0 |
Derivative liabilities at fair value | 0 | 0 |
Non-Qualifying Hedges | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets at fair value | 68.4 | 94.7 |
Derivative liabilities at fair value | (54.2) | (57.3) |
Non-Qualifying Hedges | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets at fair value | 0.1 | 0 |
Derivative liabilities at fair value | (14.1) | (11.5) |
Qualifying Hedges | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets at fair value | 0.2 | 16.9 |
Derivative liabilities at fair value | (18.7) | |
Qualifying Hedges | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets at fair value | 0 | 0 |
Qualifying Hedges | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets at fair value | 0.2 | 16.9 |
Derivative liabilities at fair value | (18.7) | |
Qualifying Hedges | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets at fair value | $ 0 | $ 0 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) $ in Millions | Aug. 03, 2015USD ($)holdback | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | ||||
Fair Value Disclosure [Line Items] | ||||||||||||||||
Borrower rate, max effective period | 90 days | |||||||||||||||
Goodwill impairment | $ 255.6 | $ 0 | $ 0 | $ 0 | $ 354.2 | $ 0 | $ 0 | $ 0 | $ 255.6 | $ 354.2 | $ 0 | |||||
Assets held for sale | 2,263.1 | [1] | 636 | [1] | $ 2,263.1 | [1] | $ 636 | [1] | $ 2,057.7 | |||||||
Fair value of loans as a percentage of carrying value | 101.60% | 100.60% | ||||||||||||||
Unpaid Principal Balance | 3,065.7 | 3,685 | $ 3,065.7 | $ 3,685 | ||||||||||||
Impaired loans with related allowance carrying amount | 146.7 | 188.2 | $ 146.7 | $ 188.2 | ||||||||||||
Impaired loans with related allowance carrying amount as a percentage of unpaid principal balance | 75.00% | 77.00% | ||||||||||||||
Impaired loans with no specific allowance unpaid principal balance | 86.1 | 74.7 | $ 86.1 | $ 74.7 | ||||||||||||
Impaired loans with no specific allowance carrying value | 63.6 | 55.5 | 63.6 | 55.5 | ||||||||||||
Estimated Fair Value | ||||||||||||||||
Fair Value Disclosure [Line Items] | ||||||||||||||||
Loans (excluding leases) | 26,844.8 | 26,846.7 | 26,844.8 | 26,846.7 | ||||||||||||
Impaired Loans | ||||||||||||||||
Fair Value Disclosure [Line Items] | ||||||||||||||||
Unpaid Principal Balance | 195.5 | 244.3 | 195.5 | 244.3 | ||||||||||||
Level 2 | ||||||||||||||||
Fair Value Disclosure [Line Items] | ||||||||||||||||
Assets held for sale | 4.7 | 4.7 | ||||||||||||||
Unsecured debt | 3,800 | 10,600 | 3,800 | 10,600 | ||||||||||||
Par value of debt | 4,300 | 3,300 | 4,300 | 3,300 | ||||||||||||
Level 2 | Estimated Fair Value | ||||||||||||||||
Fair Value Disclosure [Line Items] | ||||||||||||||||
Loans (excluding leases) | 624.3 | 390.3 | 624.3 | 390.3 | ||||||||||||
Level 3 | ||||||||||||||||
Fair Value Disclosure [Line Items] | ||||||||||||||||
Par value of debt | 1,000 | 1,100 | 1,000 | 1,100 | ||||||||||||
Level 3 | Estimated Fair Value | ||||||||||||||||
Fair Value Disclosure [Line Items] | ||||||||||||||||
Loans (excluding leases) | 26,220.5 | 26,456.4 | 26,220.5 | $ 26,456.4 | ||||||||||||
OneWest Bank | ||||||||||||||||
Fair Value Disclosure [Line Items] | ||||||||||||||||
Probable amount of holdback to be paid | 62.4 | |||||||||||||||
Consideration holdback liability | 46 | 46 | ||||||||||||||
Goodwill impairment | 319.4 | |||||||||||||||
OneWest Bank | Minimum | ||||||||||||||||
Fair Value Disclosure [Line Items] | ||||||||||||||||
Range of potential holdback to be paid | 0 | 0 | ||||||||||||||
OneWest Bank | Maximum | ||||||||||||||||
Fair Value Disclosure [Line Items] | ||||||||||||||||
Range of potential holdback to be paid | 116 | $ 116 | ||||||||||||||
FDIC True-up liability | Level 3 | ||||||||||||||||
Fair Value Disclosure [Line Items] | ||||||||||||||||
Discount Rate | 2.90% | 3.20% | ||||||||||||||
FDIC True-up liability | Weighted Average | Level 3 | ||||||||||||||||
Fair Value Disclosure [Line Items] | ||||||||||||||||
Discount Rate | 2.90% | 3.20% | ||||||||||||||
Consideration holdback liability | Minimum | Level 3 | ||||||||||||||||
Fair Value Disclosure [Line Items] | ||||||||||||||||
Discount Rate | 1.30% | |||||||||||||||
Consideration holdback liability | Maximum | Level 3 | ||||||||||||||||
Fair Value Disclosure [Line Items] | ||||||||||||||||
Discount Rate | 4.00% | |||||||||||||||
Consideration holdback liability | Weighted Average | Level 3 | ||||||||||||||||
Fair Value Disclosure [Line Items] | ||||||||||||||||
Discount Rate | 2.10% | |||||||||||||||
Consideration holdback liability | OneWest Bank | ||||||||||||||||
Fair Value Disclosure [Line Items] | ||||||||||||||||
Number of seperate holdbacks | holdback | 4 | |||||||||||||||
Reduction in cash consideration due to trailing risks | $ 116 | |||||||||||||||
Consideration holdback liability | OneWest Bank | Minimum | ||||||||||||||||
Fair Value Disclosure [Line Items] | ||||||||||||||||
Holdback periods | 1 year | |||||||||||||||
Consideration holdback liability | OneWest Bank | Maximum | ||||||||||||||||
Fair Value Disclosure [Line Items] | ||||||||||||||||
Holdback periods | 5 years | |||||||||||||||
Other Real Estate Owned | Minimum | Level 3 | ||||||||||||||||
Fair Value Disclosure [Line Items] | ||||||||||||||||
Costs to sell | 5.40% | |||||||||||||||
Other Real Estate Owned | Maximum | Level 3 | ||||||||||||||||
Fair Value Disclosure [Line Items] | ||||||||||||||||
Costs to sell | 52.60% | |||||||||||||||
Other Real Estate Owned | Weighted Average | Level 3 | ||||||||||||||||
Fair Value Disclosure [Line Items] | ||||||||||||||||
Costs to sell | 6.50% | |||||||||||||||
Securities carried at fair value with changes recorded in net income | Level 3 | ||||||||||||||||
Fair Value Disclosure [Line Items] | ||||||||||||||||
Discount Rate | 31.10% | |||||||||||||||
Securities carried at fair value with changes recorded in net income | Minimum | Level 3 | ||||||||||||||||
Fair Value Disclosure [Line Items] | ||||||||||||||||
Discount Rate | 0.00% | |||||||||||||||
Securities carried at fair value with changes recorded in net income | Maximum | Level 3 | ||||||||||||||||
Fair Value Disclosure [Line Items] | ||||||||||||||||
Discount Rate | 34.60% | |||||||||||||||
Securities carried at fair value with changes recorded in net income | Weighted Average | Level 3 | ||||||||||||||||
Fair Value Disclosure [Line Items] | ||||||||||||||||
Discount Rate | 31.10% | 5.60% | ||||||||||||||
Consumer Banking Reporting Unit | ||||||||||||||||
Fair Value Disclosure [Line Items] | ||||||||||||||||
Goodwill impairment | $ 319.4 | |||||||||||||||
Commercial Services | ||||||||||||||||
Fair Value Disclosure [Line Items] | ||||||||||||||||
Goodwill impairment | $ 8.6 | $ 8.6 | $ 34.8 | |||||||||||||
[1] | The following table presents information on assets and liabilities related to Variable Interest Entities (VIEs) that are consolidated by the Company. The difference between VIE total assets and total liabilities represents the Company's interests in those entities, which were eliminated in consolidation. The assets of the consolidated VIEs will be used to settle the liabilities of those entities and, except for the Company's interest in the VIEs, are not available to the creditors of CIT or any affiliates of CIT. |
Fair Value (Quantitative Inform
Fair Value (Quantitative Information About Level 3 Fair Value Measurements-Recurring) (Details) - Level 3 - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Estimated fair value - assets | $ 386.3 | $ 769 |
Estimated fair value - liabilities | (125.2) | (120.6) |
FDIC True-up liability | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Estimated fair value - liabilities | $ (65.1) | $ (61.9) |
Discount Rate | 2.90% | 3.20% |
Consideration holdback liability | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Estimated fair value - liabilities | $ (46) | $ (47.2) |
Derivative liabilities — non qualifying | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Estimated fair value - liabilities | (14.1) | (11.5) |
Securities — AFS | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Estimated fair value - assets | 385.8 | 485.5 |
Securities carried at fair value with changes recorded in net income | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Estimated fair value - assets | $ 0.4 | $ 283.5 |
Discount Rate | 31.10% | |
Prepayment Rate | 10.90% | |
Default Rate | 2.40% | |
Loss Severity | 59.20% | |
Derivative assets — non qualifying | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Estimated fair value - assets | $ 0.1 | |
Minimum | Consideration holdback liability | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount Rate | 1.30% | |
Payment Probability | 0.00% | 0.00% |
Minimum | Securities — AFS | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount Rate | 0.00% | 0.00% |
Prepayment Rate | 2.10% | 3.20% |
Default Rate | 0.00% | 0.00% |
Loss Severity | 0.30% | 1.00% |
Minimum | Securities carried at fair value with changes recorded in net income | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount Rate | 0.00% | |
Prepayment Rate | 6.10% | |
Default Rate | 1.90% | |
Loss Severity | 22.20% | |
Minimum | Derivative assets — non qualifying | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Borrower Rate | 3.00% | |
Maximum | Consideration holdback liability | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount Rate | 4.00% | |
Payment Probability | 100.00% | 100.00% |
Maximum | Securities — AFS | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount Rate | 37.10% | 96.40% |
Prepayment Rate | 22.30% | 21.20% |
Default Rate | 7.30% | 9.00% |
Loss Severity | 72.40% | 79.80% |
Maximum | Securities carried at fair value with changes recorded in net income | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount Rate | 34.60% | |
Prepayment Rate | 16.20% | |
Default Rate | 8.10% | |
Loss Severity | 44.70% | |
Maximum | Derivative assets — non qualifying | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Borrower Rate | 4.40% | |
Weighted Average | FDIC True-up liability | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount Rate | 2.90% | 3.20% |
Weighted Average | Consideration holdback liability | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount Rate | 2.10% | |
Payment Probability | 48.00% | 40.90% |
Weighted Average | Securities — AFS | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount Rate | 4.60% | 5.50% |
Prepayment Rate | 8.80% | 8.80% |
Default Rate | 3.70% | 3.90% |
Loss Severity | 35.30% | 36.30% |
Weighted Average | Securities carried at fair value with changes recorded in net income | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount Rate | 31.10% | 5.60% |
Prepayment Rate | 10.90% | 11.90% |
Default Rate | 2.40% | 4.60% |
Loss Severity | 59.20% | 25.80% |
Weighted Average | Derivative assets — non qualifying | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Borrower Rate | 3.80% |
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, 2017 | Dec. 31, 2016 | |
Derivative liabilities — non qualifying | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ (11.5) | $ (55.5) |
Included in earnings | (2.6) | 44 |
Included in comprehensive income | 0 | 0 |
Impairment | 0 | 0 |
Transfer from Securities- HTM | 0 | |
Sales, paydowns and adjustments | 0 | |
Ending balance | (14.1) | (11.5) |
FDIC True-up liability | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | (61.9) | (56.9) |
Included in earnings | (3.2) | (5) |
Included in comprehensive income | 0 | 0 |
Impairment | 0 | 0 |
Transfer from Securities- HTM | 0 | |
Sales, paydowns and adjustments | 0 | |
Ending balance | (65.1) | (61.9) |
Consideration holdback liability | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | (47.2) | (60.8) |
Included in earnings | 1.2 | (0.7) |
Included in comprehensive income | 0 | 0 |
Impairment | 0 | 0 |
Transfer from Securities- HTM | 0 | |
Sales, paydowns and adjustments | 0 | 14.3 |
Ending balance | (46) | (47.2) |
Securities — AFS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 485.5 | 567.1 |
Included in earnings | 6.6 | (5.8) |
Included in comprehensive income | 7.7 | 20.6 |
Impairment | (1.1) | (3.3) |
Transfer from Securities- HTM | 66.8 | |
Sales, paydowns and adjustments | (179.7) | (93.1) |
Ending balance | 385.8 | 485.5 |
Securities carried at fair value with changes recorded in net income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 283.5 | 339.7 |
Included in earnings | 23 | 13 |
Included in comprehensive income | 0 | 0 |
Impairment | 0 | 0 |
Transfer from Securities- HTM | 0 | |
Sales, paydowns and adjustments | (306.1) | (69.2) |
Ending balance | 0.4 | 283.5 |
FDIC Receivable | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 0.6 | 54.8 |
Included in earnings | 0.8 | 10.7 |
Included in comprehensive income | 0 | 0 |
Impairment | 0 | 0 |
Transfer from Securities- HTM | 0 | |
Sales, paydowns and adjustments | (1) | (64.9) |
Ending balance | 0.4 | 0.6 |
Derivative assets — non qualifying | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 0 | 0 |
Included in earnings | 0.1 | 0 |
Included in comprehensive income | 0 | 0 |
Impairment | 0 | 0 |
Transfer from Securities- HTM | 0 | |
Sales, paydowns and adjustments | 0 | 0 |
Ending balance | $ 0.1 | $ 0 |
Fair Value (Carrying Value Of A
Fair Value (Carrying Value Of Assets Measured At Fair Value On A Non-Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Total | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | $ 1,011.4 | $ 428.4 |
Total | Non-Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill | 51.8 | |
Assets held for sale | 177.8 | 201.6 |
Other real estate owned | 18.8 | 22.5 |
Impaired loans | 89.1 | 151.9 |
Total | 285.7 | 427.8 |
Fair Value Measurements at Reporting Date | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | 1,049.5 | 439.6 |
Fair Value Measurements at Reporting Date | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | 0 | 0 |
Fair Value Measurements at Reporting Date | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | 4.7 | 175 |
Fair Value Measurements at Reporting Date | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | 1,044.8 | 264.6 |
Fair Value Measurements at Reporting Date | Non-Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill | 0 | |
Assets held for sale | 0 | 0 |
Other real estate owned | 0 | 0 |
Impaired loans | 0 | 0 |
Total | 0 | 0 |
Fair Value Measurements at Reporting Date | Non-Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill | 0 | |
Assets held for sale | 0 | 0 |
Other real estate owned | 0 | 0 |
Impaired loans | 0 | 0 |
Total | 0 | 0 |
Fair Value Measurements at Reporting Date | Non-Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill | 51.8 | |
Assets held for sale | 177.8 | 201.6 |
Other real estate owned | 18.8 | 22.5 |
Impaired loans | 89.1 | 151.9 |
Total | 285.7 | 427.8 |
Total (Losses) | Non-Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill | (354.2) | |
Assets held for sale | (15) | (14.7) |
Other real estate owned | (4.4) | (3.2) |
Impaired loans | (21.9) | (26.8) |
Total | $ (41.3) | $ (398.9) |
Fair Value (Carrying And Estima
Fair Value (Carrying And Estimated Fair Values Of Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financial Assets | ||||
Cash and interest bearing deposits | [1] | $ 1,440.1 | $ 5,608.5 | |
Financial Liabilities | ||||
Credit balances of factoring clients | (1,468.6) | (1,292) | $ (1,344) | |
Debt Securities AFS | 6,123.6 | |||
Securities carried at fair value with changes recorded in net income | 0.4 | 283.5 | ||
Carrying Value | ||||
Financial Assets | ||||
Cash and interest bearing deposits | 1,718.7 | 6,430.6 | ||
Assets held for sale (excluding leases) | 1,011.4 | 428.4 | ||
Loans (excluding leases) | 26,428.1 | 26,683 | ||
Securities purchased under agreement to resell | 150 | |||
Investment securities | 6,469.9 | 4,491.1 | ||
Indemnification assets | 113.5 | 233.4 | ||
Other assets subject to fair value disclosure and unsecured counterparty receivables | 542.2 | 712.2 | ||
Financial Liabilities | ||||
Deposits | (29,586.5) | (32,323.2) | ||
Borrowings | (9,043.8) | (15,097.8) | ||
Credit balances of factoring clients | (1,468.6) | (1,292) | ||
Other liabilities subject to fair value disclosure | (725.2) | (1,003.6) | ||
Carrying Value | Non-Qualifying Hedges | ||||
Financial Assets | ||||
Derivative assets at fair value | 68.5 | 94.7 | ||
Financial Liabilities | ||||
Derivative liabilities at fair value | (68.3) | (68.8) | ||
Carrying Value | Qualifying Hedges | ||||
Financial Assets | ||||
Derivative assets at fair value | 0.2 | 16.9 | ||
Financial Liabilities | ||||
Derivative liabilities at fair value | (18.7) | |||
Estimated Fair Value | ||||
Financial Assets | ||||
Cash and interest bearing deposits | 1,718.7 | 6,430.6 | ||
Assets held for sale (excluding leases) | 1,049.5 | 439.6 | ||
Loans (excluding leases) | 26,844.8 | 26,846.7 | ||
Securities purchased under agreement to resell | 150 | |||
Investment securities | 6,469.9 | 4,494.2 | ||
Indemnification assets | 87.4 | 201 | ||
Other assets subject to fair value disclosure and unsecured counterparty receivables | 542.2 | 712.2 | ||
Financial Liabilities | ||||
Deposits | (29,668.6) | (32,490.9) | ||
Borrowings | (9,272.9) | (15,562.7) | ||
Credit balances of factoring clients | (1,468.6) | (1,292) | ||
Other liabilities subject to fair value disclosure | (725.2) | (1,003.6) | ||
Agency claimed indemnification assets | 28.9 | 108 | ||
Estimated Fair Value | Non-Qualifying Hedges | ||||
Financial Assets | ||||
Derivative assets at fair value | 68.5 | 94.7 | ||
Financial Liabilities | ||||
Derivative liabilities at fair value | (68.3) | (68.8) | ||
Estimated Fair Value | Qualifying Hedges | ||||
Financial Assets | ||||
Derivative assets at fair value | 0.2 | 16.9 | ||
Financial Liabilities | ||||
Derivative liabilities at fair value | (18.7) | |||
Level 1 | Estimated Fair Value | ||||
Financial Assets | ||||
Cash and interest bearing deposits | 1,718.7 | 6,430.6 | ||
Assets held for sale (excluding leases) | 0 | 0 | ||
Loans (excluding leases) | 0 | 0 | ||
Securities purchased under agreement to resell | 0 | |||
Investment securities | 199.2 | 200.4 | ||
Indemnification assets | 0 | 0 | ||
Other assets subject to fair value disclosure and unsecured counterparty receivables | 0 | 0 | ||
Financial Liabilities | ||||
Deposits | 0 | 0 | ||
Borrowings | 0 | 0 | ||
Credit balances of factoring clients | 0 | 0 | ||
Other liabilities subject to fair value disclosure | 0 | 0 | ||
Level 1 | Estimated Fair Value | Non-Qualifying Hedges | ||||
Financial Assets | ||||
Derivative assets at fair value | 0 | 0 | ||
Financial Liabilities | ||||
Derivative liabilities at fair value | 0 | 0 | ||
Level 1 | Estimated Fair Value | Qualifying Hedges | ||||
Financial Assets | ||||
Derivative assets at fair value | 0 | 0 | ||
Financial Liabilities | ||||
Derivative liabilities at fair value | 0 | |||
Level 2 | Estimated Fair Value | ||||
Financial Assets | ||||
Cash and interest bearing deposits | 0 | 0 | ||
Assets held for sale (excluding leases) | 4.7 | 175 | ||
Loans (excluding leases) | 624.3 | 390.3 | ||
Securities purchased under agreement to resell | 150 | |||
Investment securities | 5,583.3 | 3,199.6 | ||
Indemnification assets | 0 | 0 | ||
Other assets subject to fair value disclosure and unsecured counterparty receivables | 0 | 0 | ||
Financial Liabilities | ||||
Deposits | 0 | 0 | ||
Borrowings | (8,281.7) | (14,457.8) | ||
Credit balances of factoring clients | 0 | 0 | ||
Other liabilities subject to fair value disclosure | 0 | 0 | ||
Level 2 | Estimated Fair Value | Non-Qualifying Hedges | ||||
Financial Assets | ||||
Derivative assets at fair value | 68.4 | 94.7 | ||
Financial Liabilities | ||||
Derivative liabilities at fair value | (54.2) | (57.3) | ||
Level 2 | Estimated Fair Value | Qualifying Hedges | ||||
Financial Assets | ||||
Derivative assets at fair value | 0.2 | 16.9 | ||
Financial Liabilities | ||||
Derivative liabilities at fair value | (18.7) | |||
Level 3 | Estimated Fair Value | ||||
Financial Assets | ||||
Cash and interest bearing deposits | 0 | 0 | ||
Assets held for sale (excluding leases) | 1,044.8 | 264.6 | ||
Loans (excluding leases) | 26,220.5 | 26,456.4 | ||
Securities purchased under agreement to resell | 0 | |||
Investment securities | 687.4 | 1,094.2 | ||
Indemnification assets | 87.4 | 201 | ||
Other assets subject to fair value disclosure and unsecured counterparty receivables | 542.2 | 712.2 | ||
Financial Liabilities | ||||
Deposits | (29,668.6) | (32,490.9) | ||
Borrowings | (991.2) | (1,104.9) | ||
Credit balances of factoring clients | (1,468.6) | (1,292) | ||
Other liabilities subject to fair value disclosure | (725.2) | (1,003.6) | ||
Debt Securities AFS | 385.8 | 485.5 | ||
Debt securities HFM | 68.8 | |||
Non-marketable securities | 301.2 | 256.4 | ||
Level 3 | Estimated Fair Value | Non-Qualifying Hedges | ||||
Financial Assets | ||||
Derivative assets at fair value | 0.1 | 0 | ||
Financial Liabilities | ||||
Derivative liabilities at fair value | (14.1) | (11.5) | ||
Level 3 | Estimated Fair Value | Qualifying Hedges | ||||
Financial Assets | ||||
Derivative assets at fair value | 0 | 0 | ||
Financial Liabilities | ||||
Derivative liabilities at fair value | 0 | |||
Recurring | ||||
Financial Liabilities | ||||
Debt Securities AFS | 6,123.6 | 3,674.1 | ||
Securities carried at fair value with changes recorded in net income | 0.4 | 283.5 | ||
Recurring | Non-Qualifying Hedges | ||||
Financial Assets | ||||
Derivative assets at fair value | 68.5 | 94.7 | ||
Financial Liabilities | ||||
Derivative liabilities at fair value | (68.3) | (68.8) | ||
Recurring | Qualifying Hedges | ||||
Financial Assets | ||||
Derivative assets at fair value | 0.2 | 16.9 | ||
Financial Liabilities | ||||
Derivative liabilities at fair value | (18.7) | |||
Recurring | Level 1 | ||||
Financial Liabilities | ||||
Debt Securities AFS | 199 | 200.1 | ||
Securities carried at fair value with changes recorded in net income | 0 | 0 | ||
Recurring | Level 1 | Non-Qualifying Hedges | ||||
Financial Assets | ||||
Derivative assets at fair value | 0 | 0 | ||
Financial Liabilities | ||||
Derivative liabilities at fair value | 0 | 0 | ||
Recurring | Level 1 | Qualifying Hedges | ||||
Financial Assets | ||||
Derivative assets at fair value | 0 | 0 | ||
Recurring | Level 2 | ||||
Financial Liabilities | ||||
Debt Securities AFS | 5,538.8 | 2,988.5 | ||
Securities carried at fair value with changes recorded in net income | 0 | 0 | ||
Recurring | Level 2 | Non-Qualifying Hedges | ||||
Financial Assets | ||||
Derivative assets at fair value | 68.4 | 94.7 | ||
Financial Liabilities | ||||
Derivative liabilities at fair value | (54.2) | (57.3) | ||
Recurring | Level 2 | Qualifying Hedges | ||||
Financial Assets | ||||
Derivative assets at fair value | 0.2 | 16.9 | ||
Financial Liabilities | ||||
Derivative liabilities at fair value | (18.7) | |||
Recurring | Level 3 | ||||
Financial Liabilities | ||||
Debt Securities AFS | 385.8 | 485.5 | ||
Securities carried at fair value with changes recorded in net income | 0.4 | 283.5 | ||
Recurring | Level 3 | Non-Qualifying Hedges | ||||
Financial Assets | ||||
Derivative assets at fair value | 0.1 | 0 | ||
Financial Liabilities | ||||
Derivative liabilities at fair value | (14.1) | (11.5) | ||
Recurring | Level 3 | Qualifying Hedges | ||||
Financial Assets | ||||
Derivative assets at fair value | $ 0 | $ 0 | ||
[1] | The following table presents information on assets and liabilities related to Variable Interest Entities (VIEs) that are consolidated by the Company. The difference between VIE total assets and total liabilities represents the Company's interests in those entities, which were eliminated in consolidation. The assets of the consolidated VIEs will be used to settle the liabilities of those entities and, except for the Company's interest in the VIEs, are not available to the creditors of CIT or any affiliates of CIT. |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule Of Common Stock Activity) (Details) | 12 Months Ended |
Dec. 31, 2017shares | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Common Stock Issued, Beginning Balance (in shares) | 206,182,213 |
Common Stock Outstanding, Beginning Balance (in shares) | 202,087,672 |
Restricted stock issued (in shares) | 1,391,588 |
Repurchase of common stock (in shares) | (71,598,013) |
Shares held to cover taxes on vesting restricted shares and other (in shares) | (583,013) |
Employee stock purchase plan participation (in shares) | 54,690 |
Common Stock Issued, Ending Balance (in shares) | 207,628,491 |
Common Stock Outstanding, Ending Balance (in shares) | 131,352,924 |
Common Stock | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Common Stock Issued, Beginning Balance (in shares) | 206,182,213 |
Restricted stock issued (in shares) | 1,391,588 |
Employee stock purchase plan participation (in shares) | 54,690 |
Common Stock Issued, Ending Balance (in shares) | 207,628,491 |
Treasury Stock | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Common Stock Outstanding, Beginning Balance (in shares) | (4,094,541) |
Repurchase of common stock (in shares) | (71,598,013) |
Shares held to cover taxes on vesting restricted shares and other (in shares) | (583,013) |
Common Stock Outstanding, Ending Balance (in shares) | (76,275,567) |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Shares repurchased | $ 3,431,900,000 | ||
Dividends | 113,700,000 | $ 123,000,000 | $ 114,900,000 |
Total comprehensive income (loss) | 521,800,000 | (846,000,000) | 1,025,900,000 |
Accumulated other comprehensive loss | 86,500,000 | 140,100,000 | |
Reclassification adjustments impacting net income | 23,200,000 | 6,300,000 | |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive loss | 8,000,000 | 61,400,000 | |
Reclassification adjustments impacting net income | 26,200,000 | 4,700,000 | 80,500,000 |
Change in income taxes related to other comprehensive income (loss) | 24,000,000 | 3,100,000 | (35,900,000) |
Changes in benefit plan net gain (loss) and prior service (cost) credit | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive loss | 54,500,000 | 65,300,000 | |
Reclassification adjustments impacting net income | 700,000 | 1,600,000 | 2,000,000 |
Change in income taxes related to other comprehensive income (loss) | (6,200,000) | (1,700,000) | 6,800,000 |
Unrealized net gains (losses) on available for sale securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive loss | 24,000,000 | 13,400,000 | |
Reclassification adjustments impacting net income | (3,700,000) | 0 | |
Change in income taxes related to other comprehensive income (loss) | 6,900,000 | $ 4,300,000 | $ 4,300,000 |
Common Share Repurchases | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Shares repurchased | $ 3,400,000,000 | ||
Equity Tender Offer | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Share repurchased (in shares) | 57,300,000 | ||
Average share price of shares repurchased (in shares) | $ 48 | ||
Open Market Repurchases | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Share repurchased (in shares) | 3,600,560 | ||
Average share price of shares repurchased (in shares) | $ 45.27 | ||
Accelerated Share Repurchase Program, Initial Settlement | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Shares repurchased | $ 512,000,000 | ||
Share repurchased (in shares) | 9,253,668 | ||
Accelerated Share Repurchase Program, Final Settlement | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Share repurchased (in shares) | 1,452,119 | ||
Average share price of shares repurchased (in shares) | $ 47.82 |
Stockholders' Equity (Component
Stockholders' Equity (Components of Accumulated Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Gross Unrealized | $ (92.3) | $ (121.2) |
Income Taxes | 5.8 | (18.9) |
Net Unrealized | (86.5) | (140.1) |
Foreign currency translation adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Gross Unrealized | 0.8 | (28.6) |
Income Taxes | (8.8) | (32.8) |
Net Unrealized | (8) | (61.4) |
Changes in benefit plan net gain (loss) and prior service (cost) credit | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Gross Unrealized | (53.6) | (70.6) |
Income Taxes | (0.9) | 5.3 |
Net Unrealized | (54.5) | (65.3) |
Unrealized net gains (losses) on available for sale securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Gross Unrealized | (39.5) | (22) |
Income Taxes | 15.5 | 8.6 |
Net Unrealized | $ (24) | $ (13.4) |
Stockholders' Equity (Changes I
Stockholders' Equity (Changes In Accumulated Other Comprehensive Loss By Component) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ 10,003,100,000 | $ 10,945,200,000 | $ 9,052,600,000 |
Amounts reclassified from AOCI | 23,200,000 | 6,300,000 | |
Net current period AOCI | 53,600,000 | 2,000,000 | (8,200,000) |
Ending balance | 7,320,000,000 | 10,003,100,000 | 10,945,200,000 |
Total AOCI | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (140,100,000) | (142,100,000) | (133,900,000) |
AOCI activity before reclassifications | 30,400,000 | (4,300,000) | |
Amounts reclassified from AOCI | 23,200,000 | 6,300,000 | |
Net current period AOCI | 53,600,000 | 2,000,000 | (8,200,000) |
Ending balance | (86,500,000) | (140,100,000) | (142,100,000) |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (61,400,000) | (65,700,000) | |
AOCI activity before reclassifications | 27,200,000 | (400,000) | |
Amounts reclassified from AOCI | 26,200,000 | 4,700,000 | 80,500,000 |
Net current period AOCI | 53,400,000 | 4,300,000 | |
Ending balance | (8,000,000) | (61,400,000) | (65,700,000) |
Changes in benefit plan net gain (loss) and prior service (cost) credit | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (65,300,000) | (69,300,000) | |
AOCI activity before reclassifications | 10,100,000 | 2,400,000 | |
Amounts reclassified from AOCI | 700,000 | 1,600,000 | 2,000,000 |
Net current period AOCI | 10,800,000 | 4,000,000 | |
Ending balance | (54,500,000) | (65,300,000) | (69,300,000) |
Unrealized net gains (losses) on available for sale securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (13,400,000) | (7,100,000) | |
AOCI activity before reclassifications | (6,900,000) | (6,300,000) | |
Amounts reclassified from AOCI | (3,700,000) | 0 | |
Net current period AOCI | (10,600,000) | (6,300,000) | |
Ending balance | $ (24,000,000) | $ (13,400,000) | $ (7,100,000) |
Stockholders' Equity (Reclassif
Stockholders' Equity (Reclassifications Out Of Accumulated Other Comprehensive Income) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Gross Amount | $ 18,900,000 | $ 5,300,000 | |
Reclassification from AOCI, Current Period, Tax | 4,300,000 | 1,000,000 | |
Net Amount | 23,200,000 | 6,300,000 | |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net Amount | 26,200,000 | 4,700,000 | $ 80,500,000 |
Foreign currency translation adjustments | Other Non-interest Income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Gross Amount | 24,100,000 | 3,500,000 | |
Reclassification from AOCI, Current Period, Tax | 2,100,000 | 1,200,000 | |
Net Amount | 26,200,000 | 4,700,000 | |
Changes in benefit plan net gain (loss) and prior service (cost) credit | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net Amount | 700,000 | 1,600,000 | $ 2,000,000 |
Changes in benefit plan net gain (loss) and prior service (cost) credit | Operating Expenses | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Gross Amount | 700,000 | 1,800,000 | |
Reclassification from AOCI, Current Period, Tax | 0 | (200,000) | |
Net Amount | 700,000 | 1,600,000 | |
Unrealized net gains (losses) on available for sale securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net Amount | (3,700,000) | 0 | |
Unrealized net gains (losses) on available for sale securities | Other Non-interest Income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Gross Amount | (5,900,000) | 0 | |
Reclassification from AOCI, Current Period, Tax | 2,200,000 | 0 | |
Net Amount | $ (3,700,000) | $ 0 |
Regulatory Capital (Tier 1 Capi
Regulatory Capital (Tier 1 Capital And Total Capital Components) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common Equity Tier 1 Capital | $ 6,479.8 | $ 9,058.9 |
Tier 1 Capital | 6,775.4 | 9,058.9 |
Total Capital | 7,251 | 9,535.2 |
Risk-Weighted Assets | $ 44,537.7 | $ 64,586.3 |
Common Equity Tier 1 Capital Ratio | ||
Actual | 14.50% | 14.00% |
Effective minimum ratios under Basel III guidelines | 5.75% | 5.125% |
Tier 1 Capital Ratio: | ||
Actual | 15.20% | 14.00% |
Effective minimum ratios under Basel III guidelines | 7.25% | 6.625% |
Total Capital Ratio: | ||
Actual | 16.30% | 14.80% |
Effective minimum ratios under Basel III guidelines | 9.25% | 8.625% |
Tier 1 Leverage Ratio: | ||
Actual | 13.80% | 13.90% |
Required minimum ratio for capital adequacy purposes | 4.00% | 4.00% |
CIT Bank, N.A. | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common Equity Tier 1 Capital | $ 4,751.6 | $ 4,623.2 |
Tier 1 Capital | 4,751.6 | 4,623.2 |
Total Capital | 5,183.3 | 5,053.4 |
Risk-Weighted Assets | $ 34,527.2 | $ 34,410.3 |
Common Equity Tier 1 Capital Ratio | ||
Actual | 13.80% | 13.40% |
Effective minimum ratios under Basel III guidelines | 5.75% | 5.125% |
Tier 1 Capital Ratio: | ||
Actual | 13.80% | 13.40% |
Effective minimum ratios under Basel III guidelines | 7.25% | 6.625% |
Total Capital Ratio: | ||
Actual | 15.00% | 14.70% |
Effective minimum ratios under Basel III guidelines | 9.25% | 8.625% |
Tier 1 Leverage Ratio: | ||
Actual | 11.80% | 10.90% |
Required minimum ratio for capital adequacy purposes | 4.00% | 4.00% |
Earnings Per Share (Reconciliat
Earnings Per Share (Reconciliation Of Numerator And Denominator Of Basic EPS With Diluted EPS) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings / (Loss) | |||||||||||
Income (loss) from continuing operations | $ 259.4 | $ (182.6) | $ 724.1 | ||||||||
Preferred stock dividends | 9.8 | 0 | 0 | ||||||||
Income (loss) from continuing operations available to common shareholders | $ (92.6) | $ 222.8 | $ 41.2 | $ 78.2 | $ (425.8) | $ 94.2 | $ 88 | $ 61 | 249.6 | (182.6) | 724.1 |
Income (loss) from discontinued operations net of taxes | 208.8 | (665.4) | 310 | ||||||||
Net income (loss) available to common shareholders | $ (97.8) | $ 219.6 | $ 156.7 | $ 179.9 | $ (1,142.5) | $ 131.5 | $ 17 | $ 146 | $ 458.4 | $ (848) | $ 1,034.1 |
Weighted Average Common Shares Outstanding | |||||||||||
Basic shares outstanding (in shares) | 162,290 | 201,850 | 185,500 | ||||||||
Stock-based awards (in shares) | 1,660 | 0 | 888 | ||||||||
Diluted shares outstanding (in shares) | 163,950 | 201,850 | 186,388 | ||||||||
Basic Earnings Per Common Share Data | |||||||||||
Income (Loss) from continuing operations (in dollars per share) | $ 1.54 | $ (0.90) | $ 3.90 | ||||||||
Income (Loss) from discontinued operation (in dollars per share) | 1.28 | (3.30) | 1.67 | ||||||||
(Loss) income from discontinued operations, net of taxes (in dollars per share) | 2.82 | (4.20) | 5.57 | ||||||||
Diluted Earnings Per Common Share Data | |||||||||||
Income (Loss) from continuing operations (in dollars per share) | 1.52 | (0.90) | 3.89 | ||||||||
Income (Loss) from discontinued operation (in dollars per share) | 1.28 | (3.30) | 1.66 | ||||||||
Diluted (loss) income per common share (in dollars per share) | $ (0.74) | $ 1.61 | $ 0.85 | $ 0.88 | $ (5.65) | $ 0.65 | $ 0.08 | $ 0.72 | $ 2.80 | $ (4.20) | $ 5.55 |
Restricted Shares, Performance Shares, and Out-Of-The Money Options | |||||||||||
Diluted Earnings Per Common Share Data | |||||||||||
Weighted average shares excluded from diluted earnings per share (in shares) | 1,300 | 2,700 | 2,000 | ||||||||
Restricted Shares, Performance Shares, and Options | |||||||||||
Diluted Earnings Per Common Share Data | |||||||||||
Weighted average shares excluded from diluted earnings per share (in shares) | 700 |
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, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Noninterest Income [Abstract] | |||||||||||
Rental income on operating leases | $ 252.6 | $ 252.3 | $ 251.2 | $ 251.3 | $ 252.2 | $ 254.3 | $ 261 | $ 264.1 | $ 1,007.4 | $ 1,031.6 | $ 1,018.1 |
Other non-interest Income: | |||||||||||
Fee revenues | 113.6 | 111.6 | 105.7 | ||||||||
Factoring commissions | 102.9 | 105 | 116.5 | ||||||||
Gains on sales of leasing equipment | 43.8 | 51.1 | 57 | ||||||||
Gains on investments | 31.2 | 34.6 | 0.9 | ||||||||
Gains (losses) on loan and portfolio sales | 22.9 | 34.2 | (47.2) | ||||||||
Gains (losses) on OREO sales | 4.3 | 10.2 | (5.4) | ||||||||
Net gains (losses) on derivatives and foreign currency exchange | (5.4) | 55.9 | (37.9) | ||||||||
Impairment on assets held for sale | (32.2) | (36.6) | (55.9) | ||||||||
Termination fees on Canadian total return swap | 0 | (280.8) | 0 | ||||||||
Other revenues | 83.1 | 65.4 | 15.9 | ||||||||
Total other non-interest income | $ 137.2 | $ 63.3 | $ 84.6 | $ 79.1 | $ (117.6) | $ 83.6 | $ 99.8 | $ 84.8 | 364.2 | 150.6 | 149.6 |
Total non-interest income | $ 1,371.6 | $ 1,182.2 | $ 1,167.7 |
Non-Interest Expenses (Schedule
Non-Interest Expenses (Schedule Of Non-Interest Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Noninterest Expense [Abstract] | |||||||||||
Depreciation on operating lease equipment | $ 74.3 | $ 71.1 | $ 77.4 | $ 73.5 | $ 69.8 | $ 66.9 | $ 63.1 | $ 61.3 | $ 296.3 | $ 261.1 | $ 229.2 |
Maintenance and other operating lease expenses | 57.9 | 57.9 | 53.3 | 53.8 | 57.5 | 56.6 | 50.6 | 48.9 | 222.9 | 213.6 | 185.1 |
Operating expenses: | |||||||||||
Compensation and benefits | 566.3 | 585.5 | 549.6 | ||||||||
Professional fees | 132.3 | 175.8 | 135 | ||||||||
Technology | 127.9 | 133.7 | 109.2 | ||||||||
Insurance | 84.7 | 96.5 | 61.6 | ||||||||
Net occupancy expense | 67.8 | 71.9 | 49.1 | ||||||||
Advertising and marketing | 42.2 | 20.5 | 30.4 | ||||||||
Other | 89.6 | 137.8 | 114.6 | ||||||||
Operating expenses, excluding restructuring costs and intangible asset amortization | 1,110.8 | 1,221.7 | 1,049.5 | ||||||||
Intangible asset amortization | 24.7 | 25.6 | 13.3 | ||||||||
Restructuring costs | 53 | 36.2 | 58.3 | ||||||||
Total operating expenses | 304 | 277.3 | 295.6 | 311.6 | 341.3 | 302.9 | 309.3 | 330.1 | 1,188.5 | 1,283.5 | 1,121.1 |
Goodwill impairment | 255.6 | 0 | 0 | 0 | 354.2 | 0 | 0 | 0 | 255.6 | 354.2 | 0 |
Loss on debt extinguishments and deposit redemptions | $ 1.7 | $ 53.5 | $ 164.8 | $ 0 | $ 3.3 | $ 5.2 | $ 2.4 | $ 1.6 | 220 | 12.5 | 1.5 |
Total non-interest expenses | $ 2,183.3 | $ 2,124.9 | $ 1,536.9 |
Income Taxes (Schedule of Inco
Income Taxes (Schedule of Income/(Loss) Before (Benefit)/Provision for Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Examination [Line Items] | |||
Income from continuing operations before (benefit) / provision for income taxes | $ 191.6 | $ 20.9 | $ 186 |
U.S. operations | |||
Income Tax Examination [Line Items] | |||
Income from continuing operations before (benefit) / provision for income taxes | 251.9 | 157.5 | 227.6 |
Non-U.S. operations | |||
Income Tax Examination [Line Items] | |||
Income from continuing operations before (benefit) / provision for income taxes | $ (60.3) | $ (136.6) | $ (41.6) |
Income Taxes (Schedule of (Bene
Income Taxes (Schedule of (Benefit) Provision for Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||
Current U.S. federal income tax provision | $ 73.7 | $ 0.3 | $ 0.3 | ||||||||
Deferred U.S. federal income tax (benefit) / provision | 24.8 | 906.9 | (566.3) | ||||||||
Total federal income tax (benefit) / provision | 98.5 | 907.2 | (566) | ||||||||
Current state and local income tax (benefit) / provision | (0.7) | 14.6 | 5.8 | ||||||||
Deferred state and local income tax (benefit) / provision | (27.8) | 1.8 | (21) | ||||||||
Total state and local income tax (benefit) / provision | (28.5) | 16.4 | (15.2) | ||||||||
Total non-U.S. income tax (benefit) / provision | (31.4) | 90.8 | 82.4 | ||||||||
Total Effective Tax Rate | 38.6 | 1,014.4 | (498.8) | ||||||||
Continuing operations (benefit) / provision | $ 27.7 | $ (119.8) | $ (31.9) | $ 56.2 | $ (6.6) | $ 54.5 | $ 111.2 | $ 44.4 | (67.8) | 203.5 | (538) |
Discontinued operations (benefit) / provision | $ 106.4 | $ 810.9 | $ 39.2 |
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, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Increase (decrease) due to: | |||||||||||
Effective Tax Rate — Continuing operations | $ 27.7 | $ (119.8) | $ (31.9) | $ 56.2 | $ (6.6) | $ 54.5 | $ 111.2 | $ 44.4 | $ (67.8) | $ 203.5 | $ (538) |
Total Effective Tax Rate | $ 38.6 | $ 1,014.4 | $ (498.8) | ||||||||
Total Effective Tax Rate | 7.60% | 609.70% | (93.20%) | ||||||||
Continuing Operations | |||||||||||
Effective Income Tax Rate Reconciliation [Line Items] | |||||||||||
Pretax Income | $ 191.6 | $ 20.9 | $ 186 | ||||||||
Income tax expense (benefit) | |||||||||||
Federal income tax rate | $ 67 | $ 7.3 | $ 65.1 | ||||||||
Federal income tax rate | 35.00% | 35.00% | 35.00% | ||||||||
Increase (decrease) due to: | |||||||||||
State and local income taxes, net of federal income tax benefit | $ 4.4 | $ 21 | $ (10.8) | ||||||||
State and local income taxes, net of federal income tax benefit | 2.30% | 101.00% | (5.90%) | ||||||||
Non-deductible goodwill | $ 58.7 | $ 126.2 | $ 8.3 | ||||||||
Non-deductible goodwill | 30.70% | 606.60% | 4.50% | ||||||||
Domestic tax credits | $ (20.7) | $ (18.1) | $ (7.5) | ||||||||
Domestic tax credits | (10.80%) | (87.00%) | (4.00%) | ||||||||
Cumulative Method Change — Tax Advantaged Investments | $ 26.6 | $ 0 | $ 0 | ||||||||
Cumulative Method Change — Tax Advantaged Investments | 13.90% | (0.00%) | (0.00%) | ||||||||
Effect of tax law changes | $ (22.6) | $ 0 | $ 0 | ||||||||
Effect of tax law changes | (11.80%) | 0.00% | 0.00% | ||||||||
Lower tax rates applicable to non-U.S. earnings | $ (1.6) | $ (10.3) | $ 0.6 | ||||||||
Lower tax rates applicable to non-U.S. earnings | (0.80%) | (49.60%) | 0.30% | ||||||||
International income subject to U.S. tax | $ 1.2 | $ 29.2 | $ 42.1 | ||||||||
International income subject to U.S. tax | 0.60% | 140.30% | 22.60% | ||||||||
Unrecognized tax expense (benefit) | $ (0.2) | $ (14.4) | $ 4.5 | ||||||||
Unrecognized tax expense (benefit) | (0.10%) | (69.30%) | 2.40% | ||||||||
Deferred income taxes on international unremitted earnings | $ 4.6 | $ 41.8 | $ 30.2 | ||||||||
Deferred income taxes on international unremitted earnings | 2.40% | 200.70% | 16.20% | ||||||||
International Restructuring | $ (237.9) | $ 0 | $ 0 | ||||||||
International Restructuring | (124.20%) | 0.00% | 0.00% | ||||||||
Valuation allowances | $ 60.5 | $ 14.7 | $ (693.8) | ||||||||
Valuation allowances | 31.60% | 70.60% | (373.00%) | ||||||||
International tax settlements | $ (3.5) | $ (0.6) | $ (3.5) | ||||||||
International tax settlements | (1.80%) | (2.70%) | (1.90%) | ||||||||
Other | $ (4.3) | $ 6.7 | $ 26.8 | ||||||||
Other | (2.40%) | 32.40% | 14.60% | ||||||||
Effective Tax Rate — Continuing operations | $ (67.8) | $ 203.5 | $ (538) | ||||||||
Effective Tax Rate — Continuing operations | (35.40%) | 978.00% | (289.20%) | ||||||||
Discontinued Operation | |||||||||||
Effective Income Tax Rate Reconciliation [Line Items] | |||||||||||
Pretax Income | $ 315.2 | $ 145.5 | $ 349.2 | ||||||||
Income tax expense (benefit) | |||||||||||
Federal income tax rate | $ 110.3 | $ 50.9 | $ 122.2 | ||||||||
Federal income tax rate | 35.00% | 35.00% | 35.00% | ||||||||
Increase (decrease) due to: | |||||||||||
State and local income taxes, net of federal income tax benefit | $ 7.2 | $ (9.5) | $ 0.6 | ||||||||
State and local income taxes, net of federal income tax benefit | 2.30% | (6.50%) | 0.20% | ||||||||
Non-deductible penalties | $ 0 | $ 16.6 | $ 0 | ||||||||
Non-deductible penalties | 0.00% | 11.40% | 0.00% | ||||||||
Lower tax rates applicable to non-U.S. earnings | $ (93.2) | $ (110.8) | $ (89.3) | ||||||||
Lower tax rates applicable to non-U.S. earnings | (29.60%) | (76.10%) | (25.60%) | ||||||||
International income subject to U.S. tax | $ 44.2 | $ 16.7 | $ 8.1 | ||||||||
International income subject to U.S. tax | 14.00% | 11.50% | 2.30% | ||||||||
Deferred income taxes on international unremitted earnings | $ 39.7 | $ 847.3 | $ 0 | ||||||||
Deferred income taxes on international unremitted earnings | 12.60% | 582.10% | 0.00% | ||||||||
Other | $ (1.8) | $ (0.3) | $ (2.4) | ||||||||
Other | (0.50%) | (0.30%) | (0.70%) | ||||||||
Effective Tax Rate — Discontinued operation | $ 106.4 | $ 810.9 | $ 39.2 | ||||||||
Effective Tax Rate — Discontinued operation | 33.80% | 557.10% | 11.20% |
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, 2017 | Dec. 31, 2016 |
Deferred Tax Assets: | ||
Net operating loss (NOL) carry forwards | $ 877.3 | $ 2,528.3 |
Basis difference in loans | 181.5 | 281.4 |
Provision for credit losses | 117.8 | 185.7 |
Accrued liabilities and reserves | 116.6 | 274.9 |
FSA adjustments — aircraft and rail contracts | 0 | 24.2 |
Deferred stock-based compensation | 19.5 | 34.5 |
Domestic tax credits | 87.1 | 40.5 |
Capital Loss Carryforward | 54 | 3.3 |
Other | 46.8 | 75.8 |
Total gross deferred tax assets | 1,500.6 | 3,448.6 |
Deferred Tax Liabilities: | ||
Operating leases | (1,066.5) | (1,818.5) |
Loans and direct financing leases | (38.1) | (100.3) |
Basis difference in mortgage backed securities | (24.6) | (100) |
Basis difference in federal home loan bank stock | (17.5) | (28.1) |
Non-U.S. unremitted earnings | (61) | (1,032.6) |
Unrealized foreign exchange gains | (12.5) | (27.7) |
Goodwill and intangibles | (23.5) | (116.7) |
Other | (16.9) | (21.6) |
Total deferred tax liabilities | (1,260.6) | (3,245.5) |
Total net deferred tax asset before valuation allowances | 240 | 203.1 |
Less: Valuation allowances | (280.6) | (278.4) |
Net deferred tax asset (liability) after valuation allowances | $ (40.6) | $ (75.3) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | |
Income Tax Contingency [Line Items] | |||
Deferred tax benefit from tax cuts and jobs act | $ 11.6 | ||
Limit on net operating loss usage, per annum | 265 | ||
Net operating loss (NOL) carry forwards | 877.3 | $ 2,528.3 | |
Deferred tax assets, valuation allowance | 280.6 | 278.4 | |
Deferred income tax liability | 61 | ||
Reduction in deferred income tax liabilities | 967 | ||
Reduction in deferred income tax liabilities, sale of commercial air business | 964 | ||
Reduction in deferred income tax liabilities, U.S. tax reform | 13.6 | ||
Reduction in uncertain tax positions | 28.3 | ||
Reductions for tax positions of prior years | 10.6 | ||
Reductions for disposal | 6.6 | ||
Recognized increase in interest and penalties associated with uncertain tax positions | 5.4 | ||
Accrual for interest and penalties | 6.3 | ||
Unrecognized tax benefits | 19.8 | 48.1 | |
Potential decrease to tax benefits, minimum | 0 | ||
Potential decrease to tax benefits, maximum | 5 | ||
U.S. Federal | |||
Income Tax Contingency [Line Items] | |||
Net operating loss (NOL) carry forwards | 2,400 | ||
Deferred tax asset | 504 | ||
Operating loss carryforwards | 2,400 | ||
Deferred tax assets no longer subject to limitation/adjustment | 1,400 | ||
Deferred tax assets, valuation allowance | 690 | $ 647 | |
Operating loss carryforwards, valuation allowance | 0 | ||
U.S. Federal | Pre-Emergence Bankruptcy | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | 1,000 | ||
U.S. State | |||
Income Tax Contingency [Line Items] | |||
Deferred tax asset | 322 | ||
Operating loss carryforwards | 6,100 | ||
State NOLs expiring in next fiscal year | 188 | ||
Operating loss carryforwards, valuation allowance | 208.6 | 250 | |
Foreign Tax Authority | |||
Income Tax Contingency [Line Items] | |||
Deferred tax asset | 51.1 | ||
Operating loss carryforwards | 203.8 | ||
Deferred tax assets, valuation allowance | 32.4 | ||
Deferred tax asset valuation, change in amount | $ 38.9 | ||
Reductions for tax positions of prior years | 21 | ||
Capital Loss Carryforward | U.S. Federal | |||
Income Tax Contingency [Line Items] | |||
Capital loss carryforwards, valuation allowance | 33.2 | ||
Capital Loss Carryforward | U.S. State | |||
Income Tax Contingency [Line Items] | |||
Capital loss carryforwards, valuation allowance | $ 6.4 |
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, 2017USD ($) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Beginning balance | $ 48.1 |
Additions for tax positions related to prior years | 3 |
Reductions for tax positions of prior years | (10.6) |
Income Tax Audit Settlements | (21) |
Other | 0.3 |
Ending balance | 19.8 |
Liabilities for Unrecognized Tax Benefits | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Beginning balance | 36.4 |
Additions for tax positions related to prior years | 1.1 |
Reductions for tax positions of prior years | (6.4) |
Income Tax Audit Settlements | (16.6) |
Other | (1) |
Ending balance | 13.5 |
Interest / Penalties | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Beginning balance | 11.7 |
Additions for tax positions related to prior years | 1.9 |
Reductions for tax positions of prior years | (4.2) |
Income Tax Audit Settlements | (4.4) |
Other | 1.3 |
Ending balance | $ 6.3 |
Retirement, Postretirement A137
Retirement, Postretirement And Other Benefit Plans (Retirement and Postretirement Benefit Plans - Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Interest credit for accumulated balances | 2.61% | 2.55% | |
Effect of one percent increase in assumed healthcare trend rates on postretirement benefit obligation | $ 0.7 | ||
Effect of one percent decrease in assumed healthcare trend rates on postretirement benefit obligation | 0.6 | ||
Cost of defined contribution plans | 18.7 | $ 15.8 | $ 19 |
Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected future contributions for defined benefit plans in next fiscal year | 10 | ||
Retirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial gain (loss) | (9.5) | (4.7) | |
Net losses (gains) recognized in AOCI before taxes | (18.6) | (7.9) | 18.3 |
Gain (loss) amortized from AOCI into net periodic benefit cost | $ (1.5) | $ (2.9) | (2.6) |
Discount rate | 3.45% | 3.73% | |
Expected service cost (credit) to be amortized from AOCI into net periodic benefit cost in the next fiscal year | $ 1.2 | ||
Direct investments in equity securities of CIT or its subsidiaries | 0 | ||
Retirement Benefits | Minimum | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation percentage allowed by asset allocation policy | 15.00% | ||
Retirement Benefits | Minimum | Debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation percentage allowed by asset allocation policy | 35.00% | ||
Retirement Benefits | Minimum | Global Asset Allocations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation percentage allowed by asset allocation policy | 15.00% | ||
Retirement Benefits | Minimum | Hedge Fund, measured at NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation percentage allowed by asset allocation policy | 5.00% | ||
Retirement Benefits | Maximum | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation percentage allowed by asset allocation policy | 35.00% | ||
Retirement Benefits | Maximum | Debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation percentage allowed by asset allocation policy | 65.00% | ||
Retirement Benefits | Maximum | Global Asset Allocations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation percentage allowed by asset allocation policy | 25.00% | ||
Retirement Benefits | Maximum | Hedge Fund, measured at NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation percentage allowed by asset allocation policy | 10.00% | ||
Pension Plan and Supplemental Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest credit for accumulated balances | 2.84% | ||
Post-Retirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial gain (loss) | $ (0.5) | $ (0.2) | |
Expected recognition of gain (loss) next fiscal year | 0.4 | ||
Net losses (gains) recognized in AOCI before taxes | 2.1 | 2.1 | (0.7) |
Gain (loss) amortized from AOCI into net periodic benefit cost | $ 1.1 | $ 0.7 | $ 0.3 |
Discount rate | 3.50% | 3.75% | |
Expected service cost (credit) to be amortized from AOCI into net periodic benefit cost in the next fiscal year | $ 0.5 |
Retirement, Postretirement A138
Retirement, Postretirement And Other Benefit Plans (Summary Of Changes In Benefit Obligation Plan Assets Funded Status And Net Periodic Benefit Cost Of Retirement And Postretirement Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Information on accumulated benefit obligation in excess of plan assets | |||
Company assets related to non-qualified US executive retirement plan obligation not included in plan assets | $ 82.9 | $ 86.1 | |
Retirement Benefits | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | 443.6 | 445.5 | |
Service cost | 0 | 0.1 | $ 0.2 |
Interest cost | 16 | 17.1 | 16.9 |
Plan amendments, curtailments, and settlements | (3.2) | 1.8 | |
Actuarial loss | 9.5 | 4.7 | |
Benefits paid | (27.1) | (21.8) | |
Other | (5.4) | (0.2) | |
Benefit obligation at end of year | 439.8 | 443.6 | 445.5 |
Change in plan assets | |||
Fair value of plan assets at beginning of period | 355.5 | 337.9 | |
Actual return on plan assets | 46 | 28.2 | |
Employer contributions | 7.9 | 13.2 | |
Plan settlements | (0.6) | (1.8) | |
Other | (7.4) | (0.2) | |
Fair value of plan assets at end of period | 374.3 | 355.5 | 337.9 |
Funded status at end of year | (65.5) | (88.1) | |
Information on accumulated benefit obligation in excess of plan assets | |||
Projected benefit obligation / Accumulated benefit obligation | 84.7 | 437.4 | |
Fair value of plan assets | 0 | 349.3 | |
Post-Retirement Benefits | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | 35.2 | 35.1 | |
Service cost | 0 | 0 | 0 |
Interest cost | 1.2 | 1.4 | 1.4 |
Plan amendments, curtailments, and settlements | 0 | 0 | |
Actuarial loss | 0.5 | 0.2 | |
Benefits paid | (4.1) | (3.6) | |
Other | 1.7 | 2.1 | |
Benefit obligation at end of year | 34.5 | 35.2 | 35.1 |
Change in plan assets | |||
Fair value of plan assets at beginning of period | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 2.5 | 1.5 | |
Plan settlements | 0 | 0 | |
Other | 1.6 | 2.1 | |
Fair value of plan assets at end of period | 0 | 0 | $ 0 |
Funded status at end of year | $ (34.5) | $ (35.2) |
Retirement, Postretirement A139
Retirement, Postretirement And Other Benefit Plans (Schedule Of Net Periodic Benefit Cost And Other Amount Recognized in OCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0 | $ 0.1 | $ 0.2 |
Interest cost | 16 | 17.1 | 16.9 |
Expected return on plan assets | (19.3) | (18.5) | (20.1) |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net loss/(gain) | 1.6 | 2.9 | 2.6 |
Net settlement and curtailment (gain)/loss and special termination benefit | 4.5 | 0 | 0 |
Net periodic benefit cost (credit) | 2.8 | 1.6 | (0.4) |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | |||
Net loss/(gain) | (17.1) | (5) | 20.9 |
Amortization, settlement or curtailment recognition of net (loss)/gain | (1.5) | (2.9) | (2.6) |
Amortization, settlement or curtailment recognition of prior service credit | 0 | 0 | 0 |
Total recognized in OCI | (18.6) | (7.9) | 18.3 |
Total recognized in net periodic benefit cost and OCI | (15.8) | (6.3) | 17.9 |
Post-Retirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 1.2 | 1.4 | 1.4 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service cost | (0.5) | (0.5) | (0.5) |
Amortization of net loss/(gain) | (1) | (0.7) | (0.3) |
Net settlement and curtailment (gain)/loss and special termination benefit | 0 | 0 | 0 |
Net periodic benefit cost (credit) | (0.3) | 0.2 | 0.6 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | |||
Net loss/(gain) | 0.5 | 0.9 | (1.5) |
Amortization, settlement or curtailment recognition of net (loss)/gain | 1.1 | 0.7 | 0.3 |
Amortization, settlement or curtailment recognition of prior service credit | 0.5 | 0.5 | 0.5 |
Total recognized in OCI | 2.1 | 2.1 | (0.7) |
Total recognized in net periodic benefit cost and OCI | 1.8 | $ 2.3 | $ (0.1) |
Discontinued Operation | Retirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net settlement and curtailment (gain)/loss and special termination benefit | $ 4.7 |
Retirement, Postretirement A140
Retirement, Postretirement And Other Benefit Plans (Weighted Average Assumptions Used In Measurement Of Benefit Obligations) (Details) | Dec. 31, 2017 | Dec. 31, 2016 |
Retirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.45% | 3.73% |
Rate of compensation increases | 0.00% | 0.00% |
Post-Retirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.50% | 3.75% |
Health care cost trend rate, Pre-65 | 6.30% | 6.50% |
Health care cost trend rate, Post-65 | 7.40% | 7.80% |
Ultimate health care cost trend rate | 4.50% | 4.50% |
Retirement, Postretirement A141
Retirement, Postretirement And Other Benefit Plans (Weighted Average Assumptions Used To Determine Net Periodic Benefit Costs) (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.73% | 3.97% |
Expected long-term return on plan assets | 5.69% | 5.68% |
Post-Retirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.75% | 3.99% |
Retirement, Postretirement A142
Retirement, Postretirement And Other Benefit Plans (Schedule Of Asset Fair Value Measurements) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at net asset value | $ 242.2 | $ 230.2 |
Total assets at fair value and net asset value | 374.3 | 355.5 |
Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 8.3 | 5.8 |
Mutual Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 82.5 | 69.9 |
Exchange Traded Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 18.6 | 26.1 |
Common Stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 21.5 | 16 |
Short Term Investment Fund, measured at NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 1.2 | 1.4 |
Insurance Contracts, measured at NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 6.1 | |
Common Collective Trust, measured at NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at net asset value | 206.8 | 195.2 |
Partnership, measured at NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at net asset value | 9.9 | 8.6 |
Hedge Fund, measured at NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at net asset value | 25.5 | 26.4 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 132.1 | 119.2 |
Level 1 | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 8.3 | 5.8 |
Level 1 | Mutual Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 82.5 | 69.9 |
Level 1 | Exchange Traded Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 18.6 | 26.1 |
Level 1 | Common Stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 21.5 | 16 |
Level 1 | Short Term Investment Fund, measured at NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 1.2 | 1.4 |
Level 1 | Insurance Contracts, measured at NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 0 | |
Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 0 | 0 |
Level 2 | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 0 | 0 |
Level 2 | Mutual Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 0 | 0 |
Level 2 | Exchange Traded Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 0 | 0 |
Level 2 | Common Stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 0 | 0 |
Level 2 | Short Term Investment Fund, measured at NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 0 | 0 |
Level 2 | Insurance Contracts, measured at NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 0 | |
Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 0 | 6.1 |
Level 3 | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 0 | 0 |
Level 3 | Mutual Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 0 | 0 |
Level 3 | Exchange Traded Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 0 | 0 |
Level 3 | Common Stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 0 | 0 |
Level 3 | Short Term Investment Fund, measured at NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 0 | 0 |
Level 3 | Insurance Contracts, measured at NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | $ 0 | $ 6.1 |
Retirement, Postretirement A143
Retirement, Postretirement And Other Benefit Plans (Changes In Fair Value Of Plans Level 3 Assets) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Insurance Contracts | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | |
Fair value of plan assets at beginning of period | $ 6.1 |
Fair value of plan assets at end of period | |
Level 3 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | |
Fair value of plan assets at beginning of period | 6.1 |
Fair value of plan assets at end of period | 0 |
Level 3 | Insurance Contracts | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | |
Fair value of plan assets at beginning of period | 6.1 |
Actual return on plan assets | (0.3) |
Purchases, sales, and settlements, net | (5.8) |
Fair value of plan assets at end of period | $ 0 |
Retirement, Postretirement A144
Retirement, Postretirement And Other Benefit Plans (Summary Of Projected Benefits To Be Paid From Plan Assets Or From General Assets Using Current Actuarial Assumptions) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Retirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 28 |
2,019 | 27.2 |
2,020 | 29 |
2,021 | 29.1 |
2,022 | 28 |
2023 – 2027 | 138 |
Post-Retirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 2.9 |
2,019 | 2.9 |
2,020 | 2.8 |
2,021 | 2.7 |
2,022 | 2.6 |
2023 – 2027 | 11.4 |
Medicare Subsidy Receipts | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 0.2 |
2,019 | 0.3 |
2,020 | 0.3 |
2,021 | 0.3 |
2,022 | 0.3 |
2023 – 2027 | $ 0.5 |
Retirement, Postretirement A145
Retirement, Postretirement And Other Benefit Plans (Share-Based Compensation Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense related to equity-based awards | $ 41,900,000 | $ 36,600,000 | $ 63,400,000 |
Compensation expense related to non-vested awards | $ 21,900,000 | ||
Compensation expense related to non-vested awards, period for recognition | 1 year 10 months 17 days | ||
Awards vested and settled in stock | $ 59,000,000 | 52,400,000 | 56,200,000 |
Awards vested and settled in cash | 300,000 | $ 200,000 | $ 200,000 |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense related to equity-based awards | $ 41,300,000 | ||
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% | ||
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) | 54,684 | 72,325 | 46,770 |
2017 PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years | ||
2017 PSUs | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage at end of vesting period | 0.00% | ||
2017 PSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other Than Options, Allowed Adjustment to ROTCE for Performance Based Award | 20.00% | ||
Award vesting percentage at end of vesting period | 150.00% | ||
2016 PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years | ||
2016 PSUs | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage at end of vesting period | 0.00% | ||
2016 PSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage at end of vesting period | 150.00% | ||
First Form 2015 PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years | ||
Weighted average percent of fully diluted EPS | 75.00% | ||
Weighted average percent of pre-tax ROA | 25.00% | ||
First Form 2015 PSUs | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage at end of vesting period | 0.00% | ||
First Form 2015 PSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage at end of vesting period | 150.00% | ||
Second Form 2015 PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years | ||
Second Form 2015 PSUs | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage at end of vesting period | 0.00% | ||
Second Form 2015 PSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage at end of vesting period | 150.00% | ||
Restricted Stock and Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years | ||
2016 Omnibus Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of new shares authorized (in shares) | 5,000,000 | ||
Number of shares authorized, relating to awards forfeited, expired, terminated, otherwise lapsed or settled in cash as provided by new plan (in shares) | 5,405,837 | ||
Number of options outstanding (in shares) | 2,775,499 | ||
2016 Omnibus Incentive Plan | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years |
Retirement, Postretirement A146
Retirement, Postretirement And Other Benefit Plans (Summary Of Restricted Stock And RSU Activity) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Stock-Settled Restricted Stock, RSUs and PSUs | ||
Number of Shares | ||
Unvested at beginning of period (in shares) | 3,043,451 | 3,384,297 |
Vested / unsettled awards at beginning of period (in shares) | 243,335 | 39,626 |
Forfeited/cancelled (in shares) | (144,615) | (276,627) |
Vested/settled award (in shares) | (1,390,151) | (1,633,599) |
Vested / unsettled awards (in shares) | (246,057) | (243,335) |
Unvested at end of period (in shares) | 2,529,441 | 3,043,451 |
Weighted Average Grant Date Value | ||
Unvested at beginning of period (in dollars per share) | $ 37.70 | $ 45.55 |
Vested / unsettled awards at beginning of period (in dollars per share) | 45.09 | 46.10 |
Forfeited/cancelled (in dollars per share) | 36.41 | 38.61 |
Vested/settled award (in dollars per share) | 40.92 | 45.28 |
Vested / settled awards (in dollars per share) | 46.10 | 40.46 |
Unvested at end of period (in dollars per share) | $ 37.55 | $ 37.70 |
Stock-Settled PSUs | ||
Number of Shares | ||
PSUs - granted to employees (in shares) | 194,979 | 284,640 |
PSUs - adjustments for performance versus targets (in shares) | (30,758) | 19,938 |
Weighted Average Grant Date Value | ||
PSUs - granted to employee (in dollars per share) | $ 41.67 | $ 32.80 |
PSUs - adjustments for performance versus targets (in dollars per share) | $ 47.76 | $ 42.21 |
Cash-Settled Restricted Stock, RSUs and PSUs | ||
Number of Shares | ||
Unvested at beginning of period (in shares) | 12,072 | 9,623 |
Vested / unsettled awards at beginning of period (in shares) | 0 | 0 |
Forfeited/cancelled (in shares) | 0 | 0 |
Vested/settled award (in shares) | (5,507) | (5,047) |
Vested / unsettled awards (in shares) | 0 | 0 |
Unvested at end of period (in shares) | 15,071 | 12,072 |
Weighted Average Grant Date Value | ||
Unvested at beginning of period (in dollars per share) | $ 37.81 | $ 44.97 |
Vested / unsettled awards at beginning of period (in dollars per share) | 0 | 0 |
Forfeited/cancelled (in dollars per share) | 0 | 0 |
Vested/settled award (in dollars per share) | 39.42 | 44.83 |
Vested / settled awards (in dollars per share) | 0 | 0 |
Unvested at end of period (in dollars per share) | $ 42.22 | $ 37.81 |
Cash-Settled PSUs | ||
Number of Shares | ||
PSUs - granted to employees (in shares) | 0 | 0 |
PSUs - adjustments for performance versus targets (in shares) | 0 | 0 |
Weighted Average Grant Date Value | ||
PSUs - granted to employee (in dollars per share) | $ 0 | $ 0 |
PSUs - adjustments for performance versus targets (in dollars per share) | $ 0 | $ 0 |
Employees | Stock-Settled RSUs | ||
Number of Shares | ||
RSUs - granted (in shares) | 826,634 | 1,429,554 |
Weighted Average Grant Date Value | ||
RSUs - granted (in dollars per share) | $ 41.30 | $ 30.32 |
Employees | Cash-Settled RSUs | ||
Number of Shares | ||
RSUs - granted (in shares) | 0 | 0 |
Weighted Average Grant Date Value | ||
RSUs - granted (in dollars per share) | $ 0 | $ 0 |
Director | Stock-Settled RSUs | ||
Number of Shares | ||
RSUs - granted (in shares) | 32,623 | 38,957 |
Weighted Average Grant Date Value | ||
RSUs - granted (in dollars per share) | $ 46.03 | $ 33.37 |
Director | Cash-Settled RSUs | ||
Number of Shares | ||
RSUs - granted (in shares) | 8,506 | 7,496 |
Weighted Average Grant Date Value | ||
RSUs - granted (in dollars per share) | $ 46.66 | $ 33.35 |
Commitments (Summary Of Commitm
Commitments (Summary Of Commitments) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Commitments [Abstract] | ||
Financing assets - Due to Expire Within One Year | $ 1,594.9 | |
Financing assets - Due to Expire After One Year | 4,669.6 | |
Financing assets - Total Outstanding | 6,264.5 | $ 6,008.1 |
Standby letters of credit - Due to Expire Within One Year | 21.2 | |
Standby letters of credit - Due to Expire After One Year | 192.1 | |
Standby letters of credit - Total Outstanding | 213.3 | 232.2 |
Other letters of credit - Due to Expire Within One Year | 14.2 | |
Other letters of credit - Total Outstanding | 14.2 | 14 |
Deferred purchase protection agreements - Due to Expire Within One Year | 2,068.1 | |
Deferred purchase protection agreements - Total Outstanding | 2,068.1 | 2,060.5 |
Guarantees, acceptances and other recourse obligations - Due to Expire Within One Year | 2.1 | |
Guarantees, acceptances and other recourse obligations - Total Outstanding | 2.1 | 1.6 |
Aerospace purchase commitments - Due to Expire Within One Year | 0 | |
Aerospace purchase commitments - Due to Expire After One Year | 0 | |
Aerospace purchase commitments - Total Outstanding | 0 | 8,683.5 |
Rail and other purchase commitments - Due to Expire Within One Year | 187.8 | |
Rail and other purchase commitments - Due to Expire After One Year | 8.3 | |
Rail and other purchase commitments - Total Outstanding | $ 196.1 | $ 300.7 |
Commitments (Narrative) (Detail
Commitments (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($)railcar | Dec. 31, 2016USD ($) | |
Commitments [Line Items] | ||
Financing commitments on which criteria for funding have not been completed | $ 881,300,000 | $ 572,000,000 |
Financing commitments which are only cancellable under notice period | 190,000,000 | 335,000,000 |
Undrawn financing commitments with no contractual obligation to lend | 1,600,000,000 | 1,700,000,000 |
Other liabilities | 1,437,100,000 | 1,897,600,000 |
Commitments to investments in affordable housing investments and other investments qualifying for community reinvestment tax credits | 67,000,000 | 62,000,000 |
Deferred Purchase Agreements | ||
Commitments [Line Items] | ||
DPA credit protection provided to clients | 1,979,000,000 | 1,962,000,000 |
DPA credit line agreements net of deferred purchase agreement credit protection | 89,000,000 | 99,000,000 |
Other liabilities | $ 5,300,000 | 6,100,000 |
Purchase Commitments | ||
Commitments [Line Items] | ||
Railcars | railcar | 1,550 | |
Minimum | ||
Commitments [Line Items] | ||
Percent required of claim amount for loan service | 98.00% | |
Maximum | ||
Commitments [Line Items] | ||
Typical notice period | 90 days | |
Maximum | Deferred Purchase Agreements | ||
Commitments [Line Items] | ||
DPA credit line agreements, cancellation notice period | 90 days | |
OneWest Bank | ||
Commitments [Line Items] | ||
Losses incurred related to indemnification asset | $ 134,000,000 | 145,000,000 |
OneWest Bank | Minimum | ||
Commitments [Line Items] | ||
Amount FDIC agreed to fund any other draws | 200,000,000 | |
OneWest Bank | Maximum | ||
Commitments [Line Items] | ||
Amount of indemnification for losses by FDIC | 200,000,000 | |
Reverse Mortgage | ||
Commitments [Line Items] | ||
Exposure for additional draws on loan commitments | 66,000,000 | 55,000,000 |
Discontinued Operation | Financial Freedom | ||
Commitments [Line Items] | ||
Financing commitments | $ 34,000,000 | $ 42,000,000 |
Contingencies (Narrative) (Deta
Contingencies (Narrative) (Details) - USD ($) | May 16, 2017 | Dec. 31, 2014 | Dec. 31, 2017 |
Ocwen Loan Servicing, LLC Arbitration | |||
Contingencies [Line Items] | |||
Settlement | $ 29,900,000 | ||
Maximum | |||
Contingencies [Line Items] | |||
Reasonably possible litigation losses in excess of established reserves and insurance | $ 90,000,000 | ||
Indemnification Agreement | Ocwen Loan Servicing LlC | |||
Contingencies [Line Items] | |||
Indemnification obligation | 56,000,000 | ||
Indemnification Agreement | Maximum | Ocwen Loan Servicing LlC | |||
Contingencies [Line Items] | |||
Indemnifications, aggregate amount | $ 150,000,000 | ||
Unfavorable Regulatory Action | Settled Litigation | HUD OIG Investigation | |||
Contingencies [Line Items] | |||
Settlement | $ 89,000,000 | ||
Unfavorable Regulatory Action | Maximum | Pending Litigation | Mortgage Servicing Consent Orders | |||
Contingencies [Line Items] | |||
Settlement | $ 12,700,000 |
Lease Commitments (Future Minim
Lease Commitments (Future Minimum Rental Payments) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Leases [Abstract] | |
2,018 | $ 47.5 |
2,019 | 46 |
2,020 | 40.1 |
2,021 | 29.6 |
2,022 | 16.9 |
Thereafter | 69.7 |
Total | 249.8 |
Minimum payment recorded against the facility | 49.2 |
Minimum payment recorded against the facility, 2018 | 16.4 |
Minimum sublease rentals | $ 39.9 |
Lease Commitments (Schedule Of
Lease Commitments (Schedule Of Rental Expense For Premises, Net Of Sublease Income, And Equipment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Rental expense | $ 36.6 | $ 43.8 | $ 30.5 |
Premises | |||
Property, Plant and Equipment [Line Items] | |||
Rental expense | 34.9 | 42.1 | 28.7 |
Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Rental expense | $ 1.7 | $ 1.7 | $ 1.8 |
Certain Relationships And Re152
Certain Relationships And Related Transactions (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||
Investment in joint venture | $ 247.6 | $ 220.2 |
Other assets | $ 1,595.5 | 2,117 |
Strategic Credit Partners Holdings LLC | ||
Related Party Transaction [Line Items] | ||
Equity interest percentage | 10.00% | |
Investment in joint venture | $ 7.3 | 5.4 |
Strategic Credit Partners Holdings LLC | Loans | ||
Related Party Transaction [Line Items] | ||
Loans sold in joint venture | $ 241.1 | |
CIT Northbridge | ||
Related Party Transaction [Line Items] | ||
Equity interest percentage | 20.00% | |
Equity interest percentage owned by other investors | 80.00% | |
Equity investment | $ 5 | |
Investments In Non-Consolidated Entities | ||
Related Party Transaction [Line Items] | ||
Other assets | $ 248 | $ 220 |
Business Segment Information (N
Business Segment Information (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017branchdivision | |
Segment Reporting [Abstract] | |
Number of branches acquired | branch | 70 |
Operating Segments | Commercial Banking | |
Segment Reporting Information [Line Items] | |
Number of divisions | division | 4 |
Business Segment (Segment Profi
Business Segment (Segment Profit and Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Segment Reporting Information [Line Items] | |||||||||||||||
Interest income | $ 447.7 | $ 454 | $ 478.2 | $ 455.7 | $ 474.1 | $ 475.7 | $ 478.7 | $ 482.9 | $ 1,835.6 | $ 1,911.5 | $ 1,445.2 | ||||
Interest expense (benefit) | 168.7 | 176.7 | 209.2 | 163.1 | 178.3 | 188.2 | 191.6 | 195 | 717.7 | 753.2 | 731.4 | ||||
Provision for credit losses | 30.4 | 30.1 | 4.4 | 49.7 | 36.7 | 45.1 | 23.3 | 89.5 | 114.6 | 194.7 | 158.6 | ||||
Rental income on operating leases | 252.6 | 252.3 | 251.2 | 251.3 | 252.2 | 254.3 | 261 | 264.1 | 1,007.4 | 1,031.6 | 1,018.1 | ||||
Other non-interest income | 364.2 | 150.6 | 149.6 | ||||||||||||
Depreciation on operating lease equipment | 74.3 | 71.1 | 77.4 | 73.5 | 69.8 | 66.9 | 63.1 | 61.3 | 296.3 | 261.1 | 229.2 | ||||
Maintenance and other operating lease expenses | 57.9 | 57.9 | 53.3 | 53.8 | 57.5 | 56.6 | 50.6 | 48.9 | 222.9 | 213.6 | 185.1 | ||||
Goodwill impairment | 255.6 | $ 0 | $ 0 | $ 0 | 354.2 | $ 0 | $ 0 | $ 0 | 255.6 | 354.2 | 0 | ||||
Operating expenses / loss on debt extinguishment | 1,408.5 | 1,296 | 1,122.6 | ||||||||||||
Income from continuing operations before (benefit) provision for income taxes | 191.6 | 20.9 | 186 | ||||||||||||
Total loans | 29,113.9 | 29,535.9 | 29,113.9 | 29,535.9 | 30,518.7 | ||||||||||
Credit balances of factoring clients | (1,468.6) | (1,292) | (1,468.6) | (1,292) | (1,344) | ||||||||||
Assets held for sale | 2,263.1 | [1] | 636 | [1] | 2,263.1 | [1] | 636 | [1] | 2,057.7 | ||||||
Operating lease equipment, net | 6,738.9 | [1] | 7,486.1 | [1] | 6,738.9 | [1] | 7,486.1 | [1] | 6,851.7 | ||||||
Commercial Banking | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total loans | 23,159.3 | 22,562.3 | 23,159.3 | 22,562.3 | |||||||||||
Consumer Banking | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total loans | 5,954.6 | 6,973.6 | 5,954.6 | 6,973.6 | |||||||||||
Non-Strategic Portfolios | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Goodwill impairment | 255.6 | 354.2 | |||||||||||||
Operating Segments | Commercial Banking | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Interest income | 1,248 | 1,287.9 | 1,029.1 | ||||||||||||
Interest expense (benefit) | 517.7 | 519.1 | 481.4 | ||||||||||||
Provision for credit losses | 88.7 | 183.1 | 143.7 | ||||||||||||
Rental income on operating leases | 1,007.4 | 1,020 | 981.4 | ||||||||||||
Other non-interest income | 291 | 293.8 | 302.6 | ||||||||||||
Depreciation on operating lease equipment | 296.3 | 261.1 | 218.3 | ||||||||||||
Maintenance and other operating lease expenses | 222.9 | 213.6 | 185.1 | ||||||||||||
Goodwill impairment | 255.6 | 34.8 | |||||||||||||
Operating expenses / loss on debt extinguishment | 691.7 | 761.6 | 727.4 | ||||||||||||
Income from continuing operations before (benefit) provision for income taxes | 473.5 | 628.4 | 557.2 | ||||||||||||
Total loans | 23,159.3 | 22,562.3 | 23,159.3 | 22,562.3 | 23,332.4 | ||||||||||
Credit balances of factoring clients | (1,468.6) | (1,292) | (1,468.6) | (1,292) | (1,344) | ||||||||||
Assets held for sale | 1,334.2 | 357.7 | 1,334.2 | 357.7 | 435.1 | ||||||||||
Operating lease equipment, net | 6,738.9 | 7,486.1 | 6,738.9 | 7,486.1 | 6,851.7 | ||||||||||
Operating Segments | Consumer Banking | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Interest income | 378.1 | 420.8 | 176.1 | ||||||||||||
Interest expense (benefit) | (51.8) | 10.2 | 24.9 | ||||||||||||
Provision for credit losses | 25.9 | 11.7 | 8.7 | ||||||||||||
Rental income on operating leases | 0 | 0 | 0 | ||||||||||||
Other non-interest income | 4.1 | 40 | 5.4 | ||||||||||||
Depreciation on operating lease equipment | 0 | 0 | 0 | ||||||||||||
Maintenance and other operating lease expenses | 0 | 0 | 0 | ||||||||||||
Goodwill impairment | 0 | 319.4 | |||||||||||||
Operating expenses / loss on debt extinguishment | 401.5 | 380.9 | 158.4 | ||||||||||||
Income from continuing operations before (benefit) provision for income taxes | 6.6 | (261.4) | (10.5) | ||||||||||||
Total loans | 5,954.6 | 6,973.6 | 5,954.6 | 6,973.6 | 7,186.3 | ||||||||||
Credit balances of factoring clients | 0 | 0 | 0 | 0 | 0 | ||||||||||
Assets held for sale | 865.6 | 68.2 | 865.6 | 68.2 | 45.1 | ||||||||||
Operating lease equipment, net | 0 | 0 | 0 | 0 | 0 | ||||||||||
Operating Segments | Non-Strategic Portfolios | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Interest income | 22.9 | 80.8 | 184.8 | ||||||||||||
Interest expense (benefit) | 15.2 | 47.2 | 121.4 | ||||||||||||
Provision for credit losses | 0 | (0.1) | 6.2 | ||||||||||||
Rental income on operating leases | 0 | 11.6 | 36.7 | ||||||||||||
Other non-interest income | 3.1 | 52.1 | (96.8) | ||||||||||||
Depreciation on operating lease equipment | 0 | 0 | 10.9 | ||||||||||||
Maintenance and other operating lease expenses | 0 | 0 | 0 | ||||||||||||
Goodwill impairment | 0 | 0 | |||||||||||||
Operating expenses / loss on debt extinguishment | 12.7 | 42.2 | 123.9 | ||||||||||||
Income from continuing operations before (benefit) provision for income taxes | (1.9) | 55.2 | (137.7) | ||||||||||||
Total loans | 0 | 0 | 0 | 0 | 0 | ||||||||||
Credit balances of factoring clients | 0 | 0 | 0 | 0 | 0 | ||||||||||
Assets held for sale | 63.3 | 210.1 | 63.3 | 210.1 | 1,577.5 | ||||||||||
Operating lease equipment, net | 0 | 0 | 0 | 0 | 0 | ||||||||||
Corporate & Other | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Interest income | 186.6 | 122 | 55.2 | ||||||||||||
Interest expense (benefit) | 236.6 | 176.7 | 103.7 | ||||||||||||
Provision for credit losses | 0 | 0 | 0 | ||||||||||||
Rental income on operating leases | 0 | 0 | 0 | ||||||||||||
Other non-interest income | 66 | (235.3) | (61.6) | ||||||||||||
Depreciation on operating lease equipment | 0 | 0 | 0 | ||||||||||||
Maintenance and other operating lease expenses | 0 | 0 | 0 | ||||||||||||
Goodwill impairment | 0 | 0 | |||||||||||||
Operating expenses / loss on debt extinguishment | 302.6 | 111.3 | 112.9 | ||||||||||||
Income from continuing operations before (benefit) provision for income taxes | (286.6) | (401.3) | (223) | ||||||||||||
Total loans | 0 | 0 | 0 | 0 | 0 | ||||||||||
Credit balances of factoring clients | 0 | 0 | 0 | 0 | 0 | ||||||||||
Assets held for sale | 0 | 0 | 0 | 0 | 0 | ||||||||||
Operating lease equipment, net | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||||
[1] | The following table presents information on assets and liabilities related to Variable Interest Entities (VIEs) that are consolidated by the Company. The difference between VIE total assets and total liabilities represents the Company's interests in those entities, which were eliminated in consolidation. The assets of the consolidated VIEs will be used to settle the liabilities of those entities and, except for the Company's interest in the VIEs, are not available to the creditors of CIT or any affiliates of CIT. |
Business Segment Information (G
Business Segment Information (Geographic Region) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Total Assets | $ 49,278.7 | $ 64,170.2 | $ 67,391.9 |
Total Revenue from continuing operations | 3,207.2 | 3,093.7 | 2,612.9 |
Income (Loss) from continuing operations before provision (benefit) for income taxes | 191.6 | 20.9 | 186 |
Income (loss) from continuing operations before attribution of noncontrolling interests | 259.4 | (182.6) | 724 |
Assets of discontinued operations | 501.3 | 13,220.7 | 13,059.6 |
U.S. | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 46,825.9 | 53,252.9 | 55,491.1 |
Total Revenue from continuing operations | 3,046.1 | 2,755.6 | 2,084.5 |
Income (Loss) from continuing operations before provision (benefit) for income taxes | 251.9 | 157.5 | 227.6 |
Income (loss) from continuing operations before attribution of noncontrolling interests | 287.3 | 99.3 | 876.7 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 1,424 | 8,575.7 | 8,351.8 |
Total Revenue from continuing operations | 119.6 | 139.7 | 125 |
Income (Loss) from continuing operations before provision (benefit) for income taxes | (34.5) | (189.2) | (227.6) |
Income (loss) from continuing operations before attribution of noncontrolling interests | (19.8) | (246.8) | (304.6) |
Other foreign | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 1,028.8 | 2,341.6 | 3,549 |
Total Revenue from continuing operations | 41.5 | 198.4 | 403.4 |
Income (Loss) from continuing operations before provision (benefit) for income taxes | (25.8) | 52.6 | 186 |
Income (loss) from continuing operations before attribution of noncontrolling interests | $ (8.1) | $ (35.1) | $ 151.9 |
Goodwill And Intangible Asse156
Goodwill And Intangible Assets (Summary Of Goodwill) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | |||||||||||
Beginning Balance | $ 685.4 | $ 685.4 | |||||||||
Impairment | $ (255.6) | $ 0 | $ 0 | 0 | $ (354.2) | $ 0 | $ 0 | $ 0 | (255.6) | $ (354.2) | $ 0 |
Ending Balance | 369.9 | 685.4 | 369.9 | 685.4 | |||||||
Impairment adjustment | 4 | 15 | |||||||||
Commercial Banking | |||||||||||
Goodwill [Roll Forward] | |||||||||||
Beginning Balance | 642.2 | 689 | 642.2 | 689 | |||||||
Impairment | (255.6) | (34.8) | |||||||||
Other activity | (12) | ||||||||||
Transfers to Held for Sale | (65.1) | ||||||||||
Foreign exchange translation | 5.2 | ||||||||||
Ending Balance | 326.7 | 642.2 | 326.7 | 642.2 | 689 | ||||||
Consumer Banking | |||||||||||
Goodwill [Roll Forward] | |||||||||||
Beginning Balance | 43.2 | 374.2 | 43.2 | 374.2 | |||||||
Impairment | 0 | (319.4) | |||||||||
Other activity | (11.6) | ||||||||||
Transfers to Held for Sale | 0 | ||||||||||
Foreign exchange translation | 0 | ||||||||||
Ending Balance | 43.2 | 43.2 | 43.2 | 43.2 | 374.2 | ||||||
Non-Strategic Portfolios | |||||||||||
Goodwill [Roll Forward] | |||||||||||
Beginning Balance | $ 685.4 | $ 1,063.2 | 685.4 | 1,063.2 | |||||||
Impairment | (255.6) | (354.2) | |||||||||
Other activity | (23.6) | ||||||||||
Transfers to Held for Sale | (65.1) | ||||||||||
Foreign exchange translation | 5.2 | ||||||||||
Ending Balance | $ 369.9 | $ 685.4 | $ 369.9 | $ 685.4 | $ 1,063.2 | ||||||
Consumer Banking And Commercial Banking | |||||||||||
Goodwill [Roll Forward] | |||||||||||
Impairment adjustment | $ 23.2 |
Goodwill And Intangible Asse157
Goodwill And Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | Aug. 03, 2015 | Aug. 01, 2014 | Jan. 31, 2014 | Aug. 31, 2014 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2009 |
Business Acquisition [Line Items] | ||||||||||||||||
Intangible assets acquired | $ 1.8 | |||||||||||||||
Goodwill | $ 369.9 | $ 685.4 | $ 369.9 | 685.4 | ||||||||||||
Goodwill impairment | 255.6 | $ 0 | $ 0 | $ 0 | 354.2 | $ 0 | $ 0 | $ 0 | 255.6 | 354.2 | $ 0 | |||||
Net intangible assets | 113 | 140.7 | 113 | 140.7 | 166.1 | |||||||||||
Accumulated amortization | 69.3 | 46.6 | 69.3 | 46.6 | ||||||||||||
Projected amortization for 2018 | 23.8 | 23.8 | ||||||||||||||
Projected amortization for 2019 | 23.2 | 23.2 | ||||||||||||||
Projected amortization for 2020 | 22.8 | 22.8 | ||||||||||||||
Projected amortization for 2021 | 22 | 22 | ||||||||||||||
Projected amortization for 2022 | 13.4 | $ 13.4 | ||||||||||||||
Core deposit intangibles | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Intangible assets acquired | 0 | |||||||||||||||
Estimated useful life | 5 years | |||||||||||||||
Net intangible assets | 82.7 | 100.9 | $ 82.7 | 100.9 | 118.8 | |||||||||||
Accumulated amortization | 43.6 | 25.4 | $ 43.6 | 25.4 | ||||||||||||
Reporting Units | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Growth rate | 3.00% | |||||||||||||||
Control premium | 25.00% | |||||||||||||||
Reporting Units | Minimum | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Discount rate | 10.00% | |||||||||||||||
Reporting Units | Maximum | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Discount rate | 12.75% | |||||||||||||||
Consumer Banking | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Goodwill | 43.2 | 43.2 | $ 43.2 | 43.2 | 374.2 | |||||||||||
Transfers to Held for Sale | 0 | |||||||||||||||
Goodwill impairment | 0 | 319.4 | ||||||||||||||
Commercial Banking | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Transfers to Held for Sale | $ 65 | |||||||||||||||
Aerospace | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Goodwill | 136 | 136 | ||||||||||||||
Nacco | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Percentage of outstanding shares acquired | 100.00% | |||||||||||||||
Purchase price | $ 250 | |||||||||||||||
Goodwill acquired | $ 77 | |||||||||||||||
Direct Capital | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Percentage of outstanding shares acquired | 100.00% | |||||||||||||||
Purchase price | $ 230 | |||||||||||||||
Goodwill acquired | 170 | |||||||||||||||
Intangible assets acquired | $ 12 | |||||||||||||||
Direct Capital | Customer Relationships and Trade Names | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Net intangible assets | 6.1 | |||||||||||||||
OneWest Bank | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Percentage of outstanding shares acquired | 100.00% | |||||||||||||||
Purchase price | $ 3,400 | |||||||||||||||
Intangible assets acquired | 165 | |||||||||||||||
Goodwill | 642.5 | $ 663 | ||||||||||||||
Goodwill impairment | $ 319.4 | |||||||||||||||
OneWest Bank | Consumer Banking | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Goodwill | 362.6 | |||||||||||||||
OneWest Bank | Originally Reported | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Goodwill | 598 | |||||||||||||||
OneWest Bank | Adjustment | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Goodwill | $ 642.5 | |||||||||||||||
Equipment Finance | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Goodwill | 80 | 80 | ||||||||||||||
Goodwill impairment | 247 | |||||||||||||||
Equipment Finance | Direct Capital | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Goodwill acquired | $ 170 | |||||||||||||||
Commercial Services | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Goodwill | $ 43 | |||||||||||||||
Goodwill impairment | $ 8.6 | $ 8.6 | $ 34.8 |
Goodwill And Intangible Asse158
Goodwill And Intangible Assets (Summary Of Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | $ 182.3 | $ 187.3 | |
Accumulated Amortization | (69.3) | (46.6) | |
Net Carrying Amount | 113 | 140.7 | $ 166.1 |
Core deposit intangibles | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | 126.3 | 126.3 | |
Accumulated Amortization | (43.6) | (25.4) | |
Net Carrying Amount | 82.7 | 100.9 | 118.8 |
Trade names | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | 24.7 | 27.4 | |
Accumulated Amortization | (7.7) | (6.1) | |
Net Carrying Amount | 17 | 21.3 | 24.4 |
Customer relationships | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | 23.9 | 23.9 | |
Accumulated Amortization | (10.6) | (7.1) | |
Net Carrying Amount | 13.3 | 16.8 | 20.7 |
Other | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | 7.4 | 9.7 | |
Accumulated Amortization | (7.4) | (8) | |
Net Carrying Amount | $ 0 | $ 1.7 | $ 2.2 |
Goodwill And Intangible Asse159
Goodwill And Intangible Assets (Summary Of Intangible Assets Rollforward) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Intangible Assets, Beginning Balance | $ 140.7 | $ 166.1 |
Additions | 1.8 | |
Amortization | (25.3) | (27.2) |
Other | (2.4) | |
Intangible Assets, Ending Balance | 113 | 140.7 |
Customer relationships | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Intangible Assets, Beginning Balance | 16.8 | 20.7 |
Additions | 0 | |
Amortization | (3.5) | (3.9) |
Other | 0 | |
Intangible Assets, Ending Balance | 13.3 | 16.8 |
Core deposit intangibles | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Intangible Assets, Beginning Balance | 100.9 | 118.8 |
Additions | 0 | |
Amortization | (18.2) | (17.9) |
Other | 0 | |
Intangible Assets, Ending Balance | 82.7 | 100.9 |
Trade names | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Intangible Assets, Beginning Balance | 21.3 | 24.4 |
Additions | 0 | |
Amortization | (2.8) | (3.1) |
Other | (1.5) | |
Intangible Assets, Ending Balance | 17 | 21.3 |
Other | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Intangible Assets, Beginning Balance | 1.7 | 2.2 |
Additions | 1.8 | |
Amortization | (0.8) | (2.3) |
Other | (0.9) | |
Intangible Assets, Ending Balance | $ 0 | $ 1.7 |
Severance And Facility Exiti160
Severance And Facility Exiting Liabilities (Summary Of Liabilities (Pre-Tax) Related To Closing Facilities And Employee Severance) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)facilityemployee | Dec. 31, 2016USD ($)facilityemployee | Dec. 31, 2015USD ($)facilityemployee | |
Liability | |||
Beginning balance | $ 18.3 | $ 56 | |
Additions and adjustments | 46.4 | 28 | |
Utilization | (21.4) | (65.7) | |
Ending balance | 43.3 | 18.3 | $ 56 |
Number of Facilities | |||
Provisions for severance | $ 53 | $ 36.2 | $ 58.3 |
Severance | |||
Number of Employees | |||
Beginning balance | employee | 35 | 53 | |
Additions and adjustments | employee | 718 | 165 | |
Utilization | employee | (215) | (183) | |
Ending balance | employee | 538 | 35 | 53 |
Liability | |||
Beginning balance | $ 3.2 | $ 36.9 | |
Additions and adjustments | 41.5 | 28.6 | |
Utilization | (16.4) | (62.3) | |
Ending balance | 28.3 | 3.2 | $ 36.9 |
Facilities | |||
Liability | |||
Beginning balance | 15.1 | 19.1 | |
Additions and adjustments | 4.9 | (0.6) | |
Utilization | (5) | (3.4) | |
Ending balance | $ 15 | $ 15.1 | $ 19.1 |
Number of Facilities | |||
Beginning balance | facility | 11 | 8 | |
Additions and adjustments | facility | 3 | 5 | |
Utilization | facility | (4) | (2) | |
Ending balance | facility | 10 | 11 | 8 |
Parent Company Financial Sta161
Parent Company Financial Statements (Condensed Parent Company Only Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Assets: | ||||
Cash and deposits | [1] | $ 278.6 | $ 822.1 | |
Securities purchased under agreement to resell | 150 | 0 | ||
Total investment securities | 6,469.9 | 4,491.1 | ||
Goodwill | 369.9 | 685.4 | ||
Other assets | 1,595.5 | 2,117 | ||
Total Assets | 49,278.7 | 64,170.2 | $ 67,391.9 | |
Liabilities and Equity: | ||||
Borrowings | 8,974.4 | 14,935.5 | ||
Other liabilities | 1,437.1 | 1,897.6 | ||
Total Liabilities | 41,958.7 | 54,167.1 | ||
Total Liabilities and Equity | 49,278.7 | 64,170.2 | ||
CIT Group Inc. | ||||
Assets: | ||||
Cash and deposits | 311 | 1,172.8 | ||
Cash held at bank subsidiary | 465.8 | 15.4 | ||
Securities purchased under agreement to resell | 150 | 0 | ||
Total investment securities | 0 | 400.3 | ||
Receivables from nonbank subsidiaries | 2,340.3 | 9,172.9 | ||
Receivables from nonbank subsidiaries | 449.4 | 34.7 | ||
Investment in nonbank subsidiaries | 2,943.3 | 3,597.4 | ||
Investment in bank subsidiaries | 5,121.5 | 5,187.9 | ||
Goodwill | 46.9 | 261.4 | ||
Other assets | 723.6 | 2,217.7 | ||
Total Assets | 12,551.8 | 22,060.5 | ||
Liabilities and Equity: | ||||
Borrowings | 3,737.5 | 10,599 | ||
Liabilities to nonbank subsidiaries | 1,148 | 907.9 | ||
Liabilities to bank subsidiaries | 0 | 4.6 | ||
Other liabilities | 346.3 | 546.3 | ||
Total Liabilities | 5,231.8 | 12,057.8 | ||
Total Stockholders' Equity | 7,320 | 10,002.7 | ||
Total Liabilities and Equity | $ 12,551.8 | $ 22,060.5 | ||
[1] | The following table presents information on assets and liabilities related to Variable Interest Entities (VIEs) that are consolidated by the Company. The difference between VIE total assets and total liabilities represents the Company's interests in those entities, which were eliminated in consolidation. The assets of the consolidated VIEs will be used to settle the liabilities of those entities and, except for the Company's interest in the VIEs, are not available to the creditors of CIT or any affiliates of CIT. |
Parent Company Financial Sta162
Parent Company Financial Statements (Condensed Parent Company Only Statement Of Operations And Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income | |||||||||||
Interest income from nonbank subsidiaries | $ 447.7 | $ 454 | $ 478.2 | $ 455.7 | $ 474.1 | $ 475.7 | $ 478.7 | $ 482.9 | $ 1,835.6 | $ 1,911.5 | $ 1,445.2 |
Interest and dividends on interest bearing deposits and investments | 197.5 | 131.9 | 71.2 | ||||||||
Other non-interest income | 137.2 | 63.3 | 84.6 | 79.1 | (117.6) | 83.6 | 99.8 | 84.8 | 364.2 | 150.6 | 149.6 |
Expenses | |||||||||||
Interest expense (benefit) | 168.7 | 176.7 | 209.2 | 163.1 | 178.3 | 188.2 | 191.6 | 195 | 717.7 | 753.2 | 731.4 |
Total non-interest expenses | 2,183.3 | 2,124.9 | 1,536.9 | ||||||||
Income from continuing operations before (benefit) provision for income taxes | 191.6 | 20.9 | 186 | ||||||||
Continuing operations (benefit) / provision | 27.7 | (119.8) | (31.9) | 56.2 | (6.6) | 54.5 | 111.2 | 44.4 | (67.8) | 203.5 | (538) |
Net income (loss) | 468.2 | (848) | 1,034.1 | ||||||||
Net income (loss) | $ (88) | $ 219.6 | $ 156.7 | $ 179.9 | $ (1,142.5) | $ 131.5 | $ 17 | $ 146 | 468.2 | (848) | 1,034 |
Other Comprehensive income (loss), net of tax | 53.6 | 2 | (8.2) | ||||||||
Comprehensive income (loss) | 521.8 | (846) | 1,025.9 | ||||||||
CIT Group Inc. | |||||||||||
Income | |||||||||||
Interest income from nonbank subsidiaries | 160.5 | 488.3 | 435.1 | ||||||||
Interest and dividends on interest bearing deposits and investments | 7.4 | 2.7 | 3.2 | ||||||||
Dividends from nonbank subsidiaries | 0 | 399.9 | 630.3 | ||||||||
Dividends from bank subsidiaries | 359 | 223 | 459.2 | ||||||||
Other non-interest income from subsidiaries | 194 | 146.3 | (138.8) | ||||||||
Other non-interest income | (127.9) | 21 | 128.8 | ||||||||
Total income | 593 | 1,281.2 | 1,517.8 | ||||||||
Expenses | |||||||||||
Interest expense (benefit) | 324.7 | 548.2 | 570.7 | ||||||||
Interest expense on liabilities to subsidiaries | (50.3) | (51.1) | (43.9) | ||||||||
Other non-interest expenses | (499.4) | (565) | (267.2) | ||||||||
Total non-interest expenses | 874.4 | 1,164.3 | 881.8 | ||||||||
Income from continuing operations before (benefit) provision for income taxes | (281.4) | 116.9 | 636 | ||||||||
Continuing operations (benefit) / provision | 163.4 | (308.5) | (827.2) | ||||||||
Net income (loss) | (444.8) | 425.4 | 1,463.2 | ||||||||
Equity in undistributed net income of bank subsidiaries | (55.6) | (349.8) | (265.1) | ||||||||
Equity in undistributed net income of nonbank subsidiaries | 968.6 | (923.6) | (164) | ||||||||
Net income (loss) | 468.2 | (848) | 1,034.1 | ||||||||
Other Comprehensive income (loss), net of tax | 53.6 | 2 | (8.2) | ||||||||
Comprehensive income (loss) | $ 521.8 | $ (846) | $ 1,025.9 |
Parent Company Financial Sta163
Parent Company Financial Statements (Condensed Parent Company Only Statements Of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows From Operations | |||||||||||
Net income (loss) before attribution of noncontrolling interests | $ (88) | $ 219.6 | $ 156.7 | $ 179.9 | $ (1,142.5) | $ 131.5 | $ 17 | $ 146 | $ 468.2 | $ (848) | $ 1,034 |
Net cash flows provided by operations | 519.8 | 2,399.2 | 1,189.8 | ||||||||
Cash Flows From Investing Activities | |||||||||||
Acquisitions | 0 | 0 | 2,521.2 | ||||||||
Net cash flows provided by (used in) investing activities | 7,755.2 | (495.3) | 1,085.2 | ||||||||
Cash Flows From Financing Activities | |||||||||||
Proceeds from the issuance of term debt | 15.3 | 781.1 | 1,626.9 | ||||||||
Repayments of term debt and net settlements | (8,427.3) | (2,619) | (4,325.3) | ||||||||
Net proceeds from issuance of preferred stock | 318 | 0 | 0 | ||||||||
Repurchase of common stock | (3,431.9) | 0 | (531.8) | ||||||||
Dividends paid | (113.7) | (123) | (114.9) | ||||||||
Net cash flows used in financing activities | (13,071.8) | (2,964.7) | (896.1) | ||||||||
(Decrease) increase in unrestricted cash and cash equivalents | (4,781.2) | (1,095.4) | 1,315.1 | ||||||||
Unrestricted cash and cash equivalents, beginning of period | 6,375.2 | 7,470.6 | 6,375.2 | 7,470.6 | 6,155.5 | ||||||
Unrestricted cash and cash equivalents, end of period | 1,594 | 6,375.2 | 1,594 | 6,375.2 | 7,470.6 | ||||||
CIT Group Inc. | |||||||||||
Cash Flows From Operations | |||||||||||
Net income (loss) before attribution of noncontrolling interests | 468.2 | (848) | 1,034.1 | ||||||||
Equity in undistributed earnings of subsidiaries | (1,272) | 650.4 | 429.1 | ||||||||
Other operating activities, net | 621.5 | 69 | (566.4) | ||||||||
Net cash flows provided by operations | (182.3) | (128.6) | 896.8 | ||||||||
Cash Flows From Investing Activities | |||||||||||
Decrease in investments in subsidiaries | 2,096.7 | 1,023.1 | 620.1 | ||||||||
Acquisitions | 0 | 0 | (1,559.5) | ||||||||
Decrease (increase) in Investment securities and securities purchased under agreements to resell | 250.3 | (100.2) | 1,454.1 | ||||||||
Net cash flows provided by (used in) investing activities | 2,347 | 922.9 | 514.7 | ||||||||
Cash Flows From Financing Activities | |||||||||||
Repayments of term debt and net settlements | (7,087.7) | (359.5) | (1,256.7) | ||||||||
Net proceeds from issuance of preferred stock | 318 | 0 | 0 | ||||||||
Repurchase of common stock | (3,431.9) | 0 | (531.8) | ||||||||
Dividends paid | (113.7) | (123) | (114.9) | ||||||||
Net change in advances from (to) subsidiaries | 7,759.9 | (131.5) | 91 | ||||||||
Other financing activities, net | (20.7) | (21.9) | (22.2) | ||||||||
Net cash flows used in financing activities | (2,576.1) | (635.9) | (1,834.6) | ||||||||
(Decrease) increase in unrestricted cash and cash equivalents | (411.4) | 158.4 | (423.1) | ||||||||
Unrestricted cash and cash equivalents, beginning of period | $ 1,188.2 | $ 1,029.8 | 1,188.2 | 1,029.8 | 1,452.9 | ||||||
Unrestricted cash and cash equivalents, end of period | $ 776.8 | $ 1,188.2 | $ 776.8 | $ 1,188.2 | $ 1,029.8 |
Selected Quarterly Financial164
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, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |||||||||||
Interest income | $ 447.7 | $ 454 | $ 478.2 | $ 455.7 | $ 474.1 | $ 475.7 | $ 478.7 | $ 482.9 | $ 1,835.6 | $ 1,911.5 | $ 1,445.2 |
Interest expense (benefit) | 168.7 | 176.7 | 209.2 | 163.1 | 178.3 | 188.2 | 191.6 | 195 | 717.7 | 753.2 | 731.4 |
Provision for credit losses | 30.4 | 30.1 | 4.4 | 49.7 | 36.7 | 45.1 | 23.3 | 89.5 | 114.6 | 194.7 | 158.6 |
Rental income on operating leases | 252.6 | 252.3 | 251.2 | 251.3 | 252.2 | 254.3 | 261 | 264.1 | 1,007.4 | 1,031.6 | 1,018.1 |
Other non-interest income | 137.2 | 63.3 | 84.6 | 79.1 | (117.6) | 83.6 | 99.8 | 84.8 | 364.2 | 150.6 | 149.6 |
Depreciation on operating lease equipment | 74.3 | 71.1 | 77.4 | 73.5 | 69.8 | 66.9 | 63.1 | 61.3 | 296.3 | 261.1 | 229.2 |
Maintenance and other operating lease expenses | 57.9 | 57.9 | 53.3 | 53.8 | 57.5 | 56.6 | 50.6 | 48.9 | 222.9 | 213.6 | 185.1 |
Goodwill impairment | 255.6 | 0 | 0 | 0 | 354.2 | 0 | 0 | 0 | 255.6 | 354.2 | 0 |
Operating expenses | 304 | 277.3 | 295.6 | 311.6 | 341.3 | 302.9 | 309.3 | 330.1 | 1,188.5 | 1,283.5 | 1,121.1 |
Loss on debt extinguishments and deposit redemptions | 1.7 | 53.5 | 164.8 | 0 | 3.3 | 5.2 | 2.4 | 1.6 | 220 | 12.5 | 1.5 |
Continuing operations (benefit) / provision | 27.7 | (119.8) | (31.9) | 56.2 | (6.6) | 54.5 | 111.2 | 44.4 | (67.8) | 203.5 | (538) |
Income (loss) from discontinued operations, net of taxes | (5.2) | (3.2) | 115.5 | 101.7 | (716.7) | 37.3 | (71) | 85 | 90.2 | (665.4) | 310 |
Net income (loss) | (88) | 219.6 | 156.7 | 179.9 | (1,142.5) | 131.5 | 17 | 146 | 468.2 | (848) | 1,034 |
Net Income (loss) applicable to common shareholders | (97.8) | 219.6 | 156.7 | 179.9 | (1,142.5) | 131.5 | 17 | 146 | 458.4 | (848) | 1,034.1 |
Income (loss) from continuing operations applicable to common shareholders | $ (92.6) | $ 222.8 | $ 41.2 | $ 78.2 | $ (425.8) | $ 94.2 | $ 88 | $ 61 | $ 249.6 | $ (182.6) | $ 724.1 |
Net (loss) income per diluted share (in dollars per share) | $ (0.74) | $ 1.61 | $ 0.85 | $ 0.88 | $ (5.65) | $ 0.65 | $ 0.08 | $ 0.72 | $ 2.80 | $ (4.20) | $ 5.55 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Feb. 01, 2018 | Feb. 16, 2018 | Feb. 15, 2018 | Dec. 31, 2017 | Feb. 28, 2017 | Jan. 31, 2017 | Dec. 31, 2016 |
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Additional Tier 2 qualifying subordinated debt approved | $ 400,000,000 | ||||||
Additional Tier 2 common equity distribution approved | 800,000,000 | ||||||
Tier 2 qualifying subordinated debt required for additional common equity distribution | $ 400,000,000 | ||||||
Revolving Credit Facility | |||||||
Subsequent Event [Line Items] | |||||||
Total commitment | $ 750,000,000 | $ 1,400,000,000 | $ 1,500,000,000 | ||||
Outstanding borrowings | $ 0 | $ 0 | |||||
Revolving Credit Facility | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Total commitment | $ 500,000,000 | $ 750,000,000 | |||||
Commitment not extended | 42,000,000 | ||||||
Revolving Credit Facility, Not Letter of Credit | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Total commitment | 375,000,000 | ||||||
Outstanding borrowings | 0 | ||||||
Letter of Credit | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Total commitment | 125,000,000 | ||||||
Outstanding borrowings | $ 55,000,000 |