CIT Reports $119MM in Net Income for Q1/2019

CIT’s first quarter net income available to common shareholders and income from continuing operations available to common shareholders were each $119 million or $1.18 per diluted common share.

“We posted solid first quarter financial results,” said CIT Chairwoman and CEO Ellen R. Alemany. “We continued to execute on our strategic plan and delivered strong growth in deposits and core loans and leases. In addition, we returned more than $200 million of capital to common shareholders and increased tangible book value per share by 2.5%. Going forward, we remain focused on further unlocking the full potential of CIT.”

Highlights from Q1/2019 included:

  • Average loans and leases growth of 1% from the prior quarter. Average core loans and leases1 growth of 2% from the prior quarter
  • Funded volume of $2.7 billion. Commercial Banking volume up 5% from the year-ago quarter
  • Repurchased 3.7 million common shares at an average price of $49.16
  • Using technology and digitization to drive greater operating efficiency, enhance customer experience and support growth
  • Credit reserves remain strong at 1.56% of the total portfolio and 1.87% of Commercial Banking
  • Net finance margin of 3.20% was down 19 bps from the prior quarter, primarily reflecting higher average deposit rates, lower net yields on operating leases and a higher level of cash and investment securities.
  • Other non-interest income increased $5 million from the prior quarter to $97 million and included an approximately $6 million benefit from the lease accounting standard change.
  • Net efficiency ratio of 58% was up from 54% in the prior quarter, reflecting seasonal elevated operating expenses and the impact of the new lease accounting standard.
  • Provision for credit losses was $33 million, up modestly from the prior quarter.
  • Net charge-offs of $34 million (0.43% of average loans) included $33 million (0.54% of average loans) in the Commercial Banking segment.
  • Loans and leases to deposit ratio was 92% at CIT Bank and 110% at CIT Group, both reflecting deposit growth in the current quarter.
  • Book value per share of $57.05 increased 2.4% from the prior quarter. Tangible book value per share of $52.42 increased 2.5% from the prior quarter.

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