CIT Group reported Q3/17 net income of $220 million compared to $131 million for the same quarter a year ago. Income from continuing operations for the third quarter was $223 million compared to $94 million in the year-ago quarter.

The following highlights were extracted from the Q3/17 earnings report:

• CIT reached a definitive agreement to sell Financial Freedom, its reverse mortgage servicing business and its reverse mortgage loan portfolio. The transaction, which is expected to close in Q2/18, included approximately $900 million in reverse mortgages and other real estate owned.
• Commercial finance average earning assets for the nine months ended September 30, 2017 were $9.88 billion, down from $11.50 billion for the same nine months in 2016. Net finance revenue for the period was $293.5 million compared to $337.2 million in the same period in 2016. The gross yield was 5.44%, up from $5.30% in the same period in 2016. The net finance margin also rose from 3.91% to 3.96% in the first nine months of 2017.
• Rail financing average earning assets for the nine months ended September 30, 2017 were $7.42 billion, up from $7.03 billion for the same period in 2016. Revenue for the period was $240.3 million, down from $271.7 million in 2016. The gross yield for the period was 11.70% compared to 13.08% a year earlier. The net finance margin of 4.32% was down 84 basis points from 5.16% a year earlier.
• Business Capital average earning assets for the nine months ended September 30, 2017 were $6.23 billion, up from $5.89 billion a year earlier. Net finance revenue for the period was $237.4 million, up from $227.6 million for the same nine months in 2016. The gross yield of 8.85% was up from 8.44% from a year earlier. The net finance margin of 5.05% was down from 5.15% in 2016.
• The operating lease equipment net balance at the end of Q3/17 was $7,637.1 million, up from $7,171.5 million a year earlier. The “rate” was 6.42% at the most recent period end compared to 8.03% a year earlier.
• Commercial banking funded new business volume for the nine months ended September 30, 2017 of $5,705.7 million was down from $6,174. million a year earlier.

“In the third quarter, we posted solid results and delivered additional progress on our transformation plan,” said Chairwoman and CEO Ellen R. Alemany. “We reduced operating expenses, completed an $800 million debt tender, grew the investment portfolio and improved our deposit mix. In addition, we addressed another legacy issue with the agreement to sell our reverse mortgage servicing business and loan portfolio, which will reduce our risk profile and support our goal to exit non-core businesses.

“In the commercial banking space, competition for asset growth intensified in certain sectors. We remain focused on a disciplined approach to the business and continuing to invest in talent and infrastructure to drive profitable growth.”