CIT Group 2019 Net Income Up 18.6%, Revenue Down 3.6% Y/Y
JAN 29, 2020 - 6:50 am
CIT Group reported Q4/19 net income was $131 million up from $92 million in Q4/18. Full year net income was $530 million, up from $447 million in 2018. 2019 net revenue was $1.848 billion, down from $1.917 billion year over year.
“We continued to deliver solid performance on our strategic plan in 2019 and laid the foundation for future value creation through the accelerated completion of the Mutual of Omaha Bank acquisition,” said CIT Chairwoman and Chief Executive Officer Ellen R. Alemany. “We achieved our core asset growth target, exceeded our operating expense goal, optimized our funding mix, improved our credit profile and grew earnings per diluted share by 28 percent, excluding noteworthy items.”
Alemany continued, “CIT enters 2020 as a stronger company, and we are poised to build momentum in the business through the addition of a lower-cost, leading homeowner association deposit channel and the expansion of relationship-based middle market banking teams. Looking ahead, we are focused on successful integration of our new franchises, steady execution of the next phase of our plan and creating sustainable long-term shareholder value.”
Acquisition of Mutual of Omaha Bank on Jan. 1, 2020 provides lower-cost stable HOA2 deposits and builds on CIT’s commercial banking strengths. Adds 34 middle market bankers.
Average loans and leases in 2019 up 1% from 2018. Average core loans and leases3 in 2019 up 7% from 2018.
Issued $100 million in 4.125% subordinated debt due 2029 and $200 million in 5.625% preferred stock to fund a portion of the Mutual of Omaha Bank transaction.
Reduced criticized assets by 28% in 2019.
Credit reserves strong at 1.56% of total portfolio and 1.89% of Commercial banking portfolio.
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