CIT Group reported Q3/16 net income of $133 million compared to net income of $693 million for Q3/15, which included $647 million of income tax benefits associated with the reversal of the valuation allowance related to the U.S. federal deferred tax asset. Income from continuing operations for Q3/16 was $148 million compared to $697 million in Q3/15, which included $647 million of income tax benefits associated with the reversal of the valuation allowance.

“I am pleased with the solid financial results we achieved this quarter in what continues to be a highly-competitive operating environment,” said Ellen Alemany, CEO. “We continue to focus on the execution of our strategic initiatives as demonstrated by the agreement to sell our Commercial Air business and the closing of the sale of our Canadian Equipment and Corporate Finance Businesses. Our recent actions will simplify our business, improve our overall financial profile and allow us to return significant capital to our shareholders.”

The following highlights were excerpted from CIT’s full earnings report:

• On August 3, 2015, CIT acquired IMB HoldCo, the parent company of OneWest Bank, which impacts the comparability of current results to prior periods. The three-month and nine-month results for 2016 include full period results of OneWest Bank’s operations while the three-month and nine-month results for 2015 include only the results of OneWest Bank’s operations for a partial period in Q3/15.
• Signed definitive agreement to sell CIT Commercial Air for $10.0 billion, which represents a 6.7% premium to net assets.
• Closed sale of Canadian Equipment and Corporate Finance Businesses
• Financing and leasing assets of $49.3 billion were down 1.6% from $50.1 billion a year earlier.
• Total Transportation Finance – Aerospace, Rail and Maritime Finance – for Q3/16 was $19.92 billion compared to $18.74 billion at the end of the same period in 2015. CIT noted that Transportation Finance currently includes the Commercial Air and Business Air businesses, which will be reclassified to discontinued operations in the fourth quarter.
• Transportation Finance funded new business volume in Q2/16 of $372 million was down from $1,144.0 million for the same quarter in 2015.