Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
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 | 202,061,727 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Assets | |||
Cash and due from banks, including restricted balances of $239.2 and $601.4 at September 30, 2016 and December 31, 2015(1), respectively (see Note 8 for amounts pledged) | [1] | $ 920.5 | $ 1,481.2 |
Interest bearing deposits, including restricted balances of $614.1 and $229.5 at September 30, 2016 and December 31, 2015(1), respectively (see Note 8 for amounts pledged) | [1] | 6,513.1 | 6,820.3 |
Investment securities, including securities carried at fair value with changes recorded in net income of $301.3 and $339.7 at September 30, 2016 and December 31, 2015, respectively (see Note 8 for amounts pledged) | 3,592.4 | 2,953.8 | |
Assets held for sale | [1] | 2,462.1 | 2,092.4 |
Loans (see Note 8 for amounts pledged) | 29,918.2 | 31,671.7 | |
Allowance for loan losses | (421.7) | (360.2) | |
Total loans, net of allowance for loan losses(1) | [1] | 29,496.5 | 31,311.5 |
Operating lease equipment, net (see Note 8 for amounts pledged)(1) | [1] | 16,954.8 | 16,617 |
Indemnification assets | 362.2 | 414.8 | |
Unsecured counterparty receivable | 560.2 | 537.8 | |
Goodwill | 1,170.5 | 1,198.3 | |
Intangible assets | 161.3 | 176.3 | |
Other assets, including $174.3 and $195.9 at September 30, 2016 and December 31, 2015, | 3,319 | 3,297.6 | |
Assets of discontinued operations | 452.9 | 500.5 | |
Total Assets | 65,965.5 | 67,401.5 | |
Liabilities | |||
Deposits | 32,854.3 | 32,782.2 | |
Credit balances of factoring clients | 1,228.9 | 1,344 | |
Other liabilities, including $263.8 and $221.3 at September 30, 2016 and December 31, 2015, | 3,168.3 | 3,158.7 | |
Borrowings, including $3,977.3 and $3,361.2 contractually due within twelve months at September 30, 2016 and December 31, 2015, respectively | 16,548.7 | 18,441.8 | |
Liabilities of discontinued operations | 927.8 | 696.2 | |
Total Liabilities | 54,728 | 56,422.9 | |
Stockholders' Equity | |||
Common stock: $0.01 par value, 600,000,000 authorized, Issued: 206,140,114 and 204,447,769 at September 30, 2016 and December 31, 2015, respectively, Outstanding: 202,047,304 and 201,021,508 at September 30, 2016 and December 31, 2015, respectively | 2.1 | 2 | |
Paid-in capital | 8,758.2 | 8,718.1 | |
Retained earnings | 2,758.9 | 2,557.4 | |
Accumulated other comprehensive loss | (104.2) | (142.1) | |
Treasury stock: 4,092,810 and 3,426,261 shares at September 30, 2016 and December 31, 2015 at cost, respectively | (178) | (157.3) | |
Total Common Stockholders' Equity | 11,237 | 10,978.1 | |
Noncontrolling minority interests | 0.5 | 0.5 | |
Total Equity | 11,237.5 | 10,978.6 | |
Total Liabilities and Equity | 65,965.5 | 67,401.5 | |
Variable Interest Entities [Member] | |||
Assets | |||
Cash and due from banks, including restricted balances of $239.2 and $601.4 at September 30, 2016 and December 31, 2015(1), respectively (see Note 8 for amounts pledged) | 267.9 | 314.2 | |
Assets held for sale | 279.7 | ||
Total loans, net of allowance for loan losses(1) | 2,061.9 | 2,218.6 | |
Operating lease equipment, net (see Note 8 for amounts pledged)(1) | 3,723.6 | 3,985.9 | |
Other assets, including $174.3 and $195.9 at September 30, 2016 and December 31, 2015, | 11.2 | ||
Total Assets | 6,053.4 | 6,809.6 | |
Liabilities | |||
Beneficial interests issued by consolidated VIEs (classified as long-term borrowings) | 3,061.2 | 4,084.8 | |
Total Liabilities | $ 3,061.2 | $ 4,084.8 | |
[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. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Consolidated Balance Sheets [Abstract] | ||
Restricted cash and due from banks | $ 239.2 | $ 601.4 |
Restricted interest-bearing deposits | 614.1 | 229.5 |
Securities carried at fair value with changes recorded in net income | 301.3 | 339.7 |
Other assets at fair value | 174.3 | 195.9 |
Other liabilities at fair value | 263.7 | 221.3 |
Borrowings contractually due within twelve months | $ 3,977.3 | $ 3,361.2 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, shares issued | 206,140,114 | 204,447,769 |
Common stock, shares outstanding | 202,047,304 | 201,021,508 |
Treasury stock, shares at cost | 4,092,810 | 3,426,261 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest income | ||||
Interest and fees on loans | $ 457.6 | $ 414.2 | $ 1,385.7 | $ 961.4 |
Other interest and dividends | 32.5 | 23.5 | 95.1 | 41.1 |
Interest income | 490.1 | 437.7 | 1,480.8 | 1,002.5 |
Interest expense | ||||
Interest on borrowings | (180) | (190.6) | (550) | (585.9) |
Interest on deposits | (99.4) | (89.7) | (298.3) | (230.9) |
Interest expense | (279.4) | (280.3) | (848.3) | (816.8) |
Net interest revenue | 210.7 | 157.4 | 632.5 | 185.7 |
Provision for credit losses | (46.2) | (49.9) | (173.6) | (102.9) |
Net interest revenue, after credit provision | 164.5 | 107.5 | 458.9 | 82.8 |
Non-interest income | ||||
Rental income on operating leases | 563.6 | 539.3 | 1,708.3 | 1,601.6 |
Other income | 73.9 | 39.2 | 279.1 | 189.1 |
Total non-interest income | 637.5 | 578.5 | 1,987.4 | 1,790.7 |
Total revenue, net of interest expense and credit provision | 802 | 686 | 2,446.3 | 1,873.5 |
Non-interest expenses | ||||
Depreciation on operating lease equipment | (179.1) | (159.1) | (530.8) | (473.7) |
Maintenance and other operating lease expenses | (60.4) | (55.9) | (181.5) | (151.4) |
Operating expenses | (332) | (333.9) | (1,018) | (810.5) |
Loss on debt extinguishment and deposit redemption | (5.1) | (0.3) | (10.8) | (0.4) |
Total non-interest expenses | (576.6) | (549.2) | (1,741.1) | (1,436) |
Income from continuing operations before provision for income taxes | 225.4 | 136.8 | 705.2 | 437.5 |
(Provision) benefit for income taxes | (77) | 560 | (224) | 478.2 |
Income from continuing operations before attribution of noncontrolling interests | 148.4 | 696.8 | 481.2 | 915.7 |
Loss attributable to noncontrolling interests, after tax | 0.1 | |||
Income from continuing operations | 148.4 | 696.8 | 481.2 | 915.8 |
Discontinued Operations | ||||
Loss from discontinued operation, net of taxes | (15.6) | (3.7) | (187.4) | (3.7) |
Total loss from discontinued operations, net of tax | (15.6) | (3.7) | (187.4) | (3.7) |
Net income (loss) | $ 132.8 | $ 693.1 | $ 293.8 | $ 912.1 |
Basic income per common share | ||||
Income from continuing operations | $ 0.74 | $ 3.66 | $ 2.39 | $ 5.08 |
Loss from discontinued operation | (0.08) | (0.02) | (0.93) | (0.02) |
Basic income per share | 0.66 | 3.64 | 1.46 | 5.06 |
Diluted income per common share | ||||
Income from continuing operations | 0.73 | 3.63 | 2.38 | 5.05 |
Loss from discontinued operation | (0.08) | (0.02) | (0.93) | (0.02) |
Diluted income per share | $ 0.65 | $ 3.61 | $ 1.45 | $ 5.03 |
Average number of common shares (thousands) | ||||
Basic | 202,036 | 190,557 | 201,775 | 180,300 |
Diluted | 202,755 | 191,803 | 202,388 | 181,350 |
Dividends declared per common share | $ 0.15 | $ 0.15 | $ 0.45 | $ 0.45 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | ||||
Net Income before attribution of noncontrolling interests | $ 132.8 | $ 693.1 | $ 293.8 | $ 912 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (2.2) | (8.7) | 16.3 | (33.4) |
Net unrealized gains (losses) on available for sale securities | 5.6 | (6.1) | 20.3 | (5.9) |
Changes in benefit plans net gain (loss) and prior service (cost)/credit | 0.1 | (0.7) | 1.3 | (1.1) |
Other comprehensive income (loss), net of tax | 3.5 | (15.5) | 37.9 | (40.4) |
Comprehensive income before noncontrolling interests | 136.3 | 677.6 | 331.7 | 871.6 |
Comprehensive loss attributable to noncontrolling interests | 0.1 | |||
Comprehensive income | $ 136.3 | $ 677.6 | $ 331.7 | $ 871.7 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) $ in Millions | Common Stock [Member] | Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Noncontrolling Minority Interests [Member] | Total |
Beginning balance at Dec. 31, 2014 | $ 2 | $ 8,603.6 | $ 1,615.7 | $ (133.9) | $ (1,018.5) | $ (5.4) | $ 9,063.5 |
Net income (loss) | 912.1 | (0.1) | 912 | ||||
Other comprehensive income (loss), net of tax | (40.4) | (40.4) | |||||
Dividends paid | (84.4) | (84.4) | |||||
Amortization of restricted stock, stock option and performance shares expenses | 59.8 | (22) | 37.8 | ||||
Repurchase of common stock | (531.8) | (531.8) | |||||
Issuance of common stock - acquisition | 45.6 | 1,416.4 | 1,462 | ||||
Employee stock purchase plan | 1 | 1 | |||||
Purchase of noncontrolling interest and distribution of earnings and capital | (26.5) | 6 | (20.5) | ||||
Ending balance at Sep. 30, 2015 | 2 | 8,683.5 | 2,443.4 | (174.3) | (155.9) | 0.5 | 10,799.2 |
Beginning balance at Dec. 31, 2015 | 2 | 8,718.1 | 2,557.4 | (142.1) | (157.3) | 0.5 | 10,978.6 |
Net income (loss) | 293.8 | 293.8 | |||||
Other comprehensive income (loss), net of tax | 37.9 | 37.9 | |||||
Dividends paid | (92.3) | (92.3) | |||||
Amortization of restricted stock, stock option and performance shares expenses | 38.2 | (20.7) | 17.5 | ||||
Repurchase of common stock | |||||||
Issuance of common stock - acquisition | 0.1 | 0.1 | |||||
Employee stock purchase plan | 1.9 | 1.9 | |||||
Ending balance at Sep. 30, 2016 | $ 2.1 | $ 8,758.2 | $ 2,758.9 | $ (104.2) | $ (178) | $ 0.5 | $ 11,237.5 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows From Operations | ||||||||
Net income | $ 132.8 | $ 693.1 | $ 293.8 | $ 912.1 | ||||
Adjustments to reconcile net income to net cash flows from operations: | ||||||||
Provision for credit losses | 173.6 | 102.9 | ||||||
Net depreciation, amortization and (accretion) | 598.1 | 582.1 | ||||||
Net gains on asset sales and impairments on assets held for sale | (58.6) | (34.2) | ||||||
Provision (benefit) for deferred income taxes | 143.1 | (563.6) | ||||||
(Increase) decrease in finance receivables held for sale | 168.1 | (117.1) | ||||||
Net reimbursement of expense from FDIC | 3.1 | 2.2 | ||||||
Decrease in other assets | 166 | 9.7 | ||||||
Decrease in other liabilities | (5.8) | (100.4) | ||||||
Net cash flows provided by operations | $ 522.5 | $ 1,036.2 | 1,481.4 | 793.7 | $ 871.2 | $ 1,206.4 | ||
Cash Flows From Investing Activities | ||||||||
Changes in loans, net | 316.8 | (1,134.7) | ||||||
Purchases of investment securities | (3,344.5) | (6,964.8) | ||||||
Proceeds from maturities of investment securities | 2,813.3 | 7,139.2 | ||||||
Proceeds from asset and receivable sales | 1,182.5 | 1,427.7 | ||||||
Purchases of assets to be leased and other equipment | (1,382.8) | (1,859.1) | ||||||
Net decrease in short-term factoring receivables | (288.1) | (32.3) | ||||||
Purchases of restricted stock | (128.9) | |||||||
Proceeds from redemption of restricted stock | 32.3 | 20 | ||||||
Payments to the FDIC under loss share agreements | (2.2) | (17.4) | ||||||
Proceeds from the FDIC under loss share agreements and pariticpation agreements | 83.9 | 11.3 | ||||||
Proceeds from the sale of OREO, net of repurchases | 103.3 | 24.2 | ||||||
Acquisition, net of cash received | 2,521.2 | |||||||
Net change in restricted cash | (22.4) | 151.1 | ||||||
Net cash flows used in investing activities | (299.2) | (326.8) | (507.9) | 1,157.5 | 1,463.8 | (981.4) | ||
Cash Flows From Financing Activities | ||||||||
Proceeds from the issuance of term debt | 2.7 | 1,606.5 | ||||||
Repayments of term debt | (1,320) | (3,700.3) | ||||||
Proceeds from FHLB advances | 1,645.5 | 5,164.1 | ||||||
Repayments of FHLB debt | (2,324.9) | (5,168.8) | ||||||
Net increase in deposits | 80.9 | 1,943.1 | ||||||
Collection of security deposits and maintenance funds | 270.9 | 236.1 | ||||||
Use of security deposits and maintenance funds | (118.2) | (127.1) | ||||||
Repurchase of common stock | (531.8) | |||||||
Dividends paid | (92.3) | (84.4) | ||||||
Purchase of noncontrolling interest | (20.5) | |||||||
Payments on affordable housing investment credits | (8.4) | (0.2) | ||||||
Net cash flows used in financing activities | (375.4) | (1,863.8) | (683.3) | |||||
Decrease in unrestricted cash and cash equivalents | (890.3) | 1,267.9 | ||||||
Unrestricted cash and cash equivalents, beginning of period | $ 7,470.6 | $ 7,470.6 | 7,470.6 | 6,155.5 | 6,155.5 | |||
Unrestricted cash and cash equivalents, end of period | $ 6,580.3 | $ 7,423.4 | 6,580.3 | 7,423.4 | $ 7,470.6 | $ 6,155.5 | ||
Supplementary Cash Flow Disclosure | ||||||||
Interest paid | (902.9) | (859.3) | ||||||
Federal, foreign, state and local income taxes (paid) collected, net | 49.9 | (26.4) | ||||||
Supplementary Non Cash Flow Disclosure | ||||||||
Transfer of assets from held for investment to held for sale | 2,020.5 | 2,049 | ||||||
Transfer of assets from held for sale to held for investment | 91 | 93.1 | ||||||
Deposits on flight equipment purchases applied to acquisition of flight equipment purchases, capitalized interest, and buyer furnished equipment | 210.4 | 288.1 | ||||||
Transfer of assets from held for investment to OREO | 71.6 | 26.4 | ||||||
Issuance of common stock as consideration | $ 1,462 |
Business And Summary Of Signifi
Business And Summary Of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Business And Summary Of Significant Accounting Policies [Abstract] | |
Business And Summary Of Significant Accounting Policies | NOTE 1 — BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CIT Group Inc., together with its subsidiaries (collectively “CIT” or, the “Company”), has provided financial solutions to its clients since its formation in 1908. The Company provides financing, leasing and advisory services principally to middle market companies in a wide variety of industries primarily in North America, and equipment financing and leasing solutions to the transportation industry worldwide. CIT is a bank holding company (“BHC”) and a financial holding company (“FHC”). Through its bank subsidiary, CIT Bank, N.A., CIT provides a full range of commercial and consumer banking and related services to customers through 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, N.A. is regulated by the Office of the Comptroller of the Currency, U.S. Department of the Treasury (“OCC”). BASIS OF PRESENTATION Basis of Financial Information These consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q for interim financial information and accordingly do not include all information and note disclosures required by generally accepted accounting principles in the United States of America (“GAAP”) for complete financial statements. The financial statements in this Form 10-Q, in the opinion of management, include all adjustments, consisting only of normal recurring adjustments, n ecessary for a fair statement of CIT’s financial position, results of operations and cash flows in accordance with GAAP. These consolidated financial statements should be read in conjunction with our Form 10-K for the year ended December 31, 2015, as updated by the Company’s Current Report filed on Form 8-K filed on September 26, 2016, which are on file with the U.S. Securities and Exchange Commission. Effective March 31, 2016, CIT re-organized its reportable operating segments to Commercial Banking, Transportation Finance, Consumer and Community Banking and Non-Strategic Portfolios. Refer to Note 17—Business Segment Information for further discussion. The accounting and financial reporting policies of CIT Group Inc. conform to GAAP and the preparation of the consolidated financial statements requires management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates and assumptions. Som e o f th e mo re signifi can t estimate s include : allowanc e fo r loa n losses , loan impairment , fai r valu e determination , leas e r esidua l values , liabili tie s fo r uncertai n ta x positions , r ealizabilit y o f defer r e d ta x assets, pu r chas e accountin g adjustments , indemnificatio n assets , good will , intangibl e assets , an d contingen t liabilities, including amounts associated with the discontinued operation . Additionally whe re applicable , th e policie s confor m t o accountin g an d r eportin g guideline s p r escribe d b y ban k r egulator y authorities. Principles of Consolidation The accompanying consolidated financial statements include financial information related to CIT Group Inc. and its majority-owned subsidiaries and those variable interest entities (“VIEs”) where the Company is the primary beneficiary. 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. The results for the quarter and nine months ended September 30, 2016 contain activity of OneWest Bank, National Association (“OneWest Bank”) , acquired on August 3, 2015 . The comparable 2015 periods presented in this Form 10-Q includes activity only from the acquisition date through September 30, 2015. See Note 2 – Acquisition and Disposition Activities for details. The current period’s results of operations do not necessarily indicate the results that may be expected for any other interim period or for the full year as a whole. Discontinued Operations The Financial Freedom business, a division of CIT Bank, N.A. (formerly a division of OneWest Bank) that services reverse mortgage loans, was acquired as part of the OneWest Transaction. Pursuant to ASC 205-20, the Financial Freedom business was reflected as discontinued operations as of the August 3, 2015 OneWest Transaction and in the subsequent periods. The business includes the entire third party servicing of reverse mortgage operations, which consist of personnel, systems and servicing assets. The 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. Unrelated to the Financial Freedom business, continuing operations includes a portfolio of reverse mortgages, which is reported in the Consumer and Community Banking segment. In addition to the mortgage servicing rights, discontinued operations reflect HECM loans, which were pooled and securitized in the form of GNMA HMBS and sold into the secondary market with servicing retained. These HECM loans are insured by the Federal Housing Administration (“FHA”). Based upon the structure of the GNMA HMBS the Company has determined that the HECM loans that were securitized as GNMA HMB S had not met all of the requirements for sale accounting and therefore, has accounted for these transfers as a financing transaction. Under a financing transaction, the transferred loans remain on the Company’s statement of financial position and the proceeds received are recorded as a secured borrowing. Discontinued Operations are discussed in Note 2 — Acquisition and Disposition Activities. Revisions of Previously Issued Statements of Cash Flows In preparing the financial statements for the nine months ended September 30, 2016, the Company discovered and corrected immaterial errors impacting the classification of certain balances between line items and categories presented in the Consolidated Statements of Cash Flows. The most significant of these errors related to classification issues between the operating and investing sections. The Company has evaluated the impact of the errors and has concluded that individually and in the aggregate, the errors were not material to any previously issued Statement of Cash Flows. However, the Company has elected to revise the Statements of Cash Flows for the nine months ended September 30, 201 5 , in this filing, and will revise previously issued balances in the Statements of Cash Flows when they are next filed in the Company’s Form 10-Q for the quarter s ended March 31, 2017 and June 30, 2017, and in the Form 10-K for the year ended December 31, 2016. Q uarter ended September 30, 201 5 The amounts presented comparatively for the nine months ended September 30, 2015 have been revised for these misclassifications. For the nine months ended September 30, 2015, the misclassifications resulted in an under statement of net cash flows provided by operations of $ 13 million, an understatement of net cash flows provided by investing activities of $ 9 million, and an under statement of net cash flows used in financing activities of $22 million. Quarter ended June 30, 2016 The amounts presented comparatively for the six months ended June 30, 2016 in the Company’s Form 10-Q for the quar ter ended June 30, 2017 will be revised for these misclassifications. For the six months ended June 30, 2016, the misclassifications resulted in an understatement of net cash flows provided by operations of $20.4 million, which will result in a revised balance of $1,036.2 million, an understatement of net cash flows used in investing activities of $20.4 million, which will result in a revised balance of $(326.8) million, with no impact on net cash flows used in financing activities. Quarter ended March 31, 2016 The amounts presented comparatively for the three months ended March 31, 2016 in the Company’s Form 10-Q for the quarter ended March 31, 2017 will be revised for these misclassifications. For the three months ended March 31, 2016, the misclassifications resulted in an overstatement of net cash flows provided by operations of $43.5 million, which will result in a revised balance of $522.5 million, an overstatement of net cash flows used in investing activities of $73.2 million, which will result in a revised balance of $ (299.2) million, and an understatement of net cash flows used in financing activities of $29.7 million which will result in a revised balance of $ (375.4) million. Year ended December 31, 2015 The amounts presented comparatively for the year ended December 31, 2015 in the Company’s Form 10-K for the year ended December 31, 2016 will be revised for these misclassifications. For the year ended December 31, 2015, the misclassifications resulted in an understatement of net cash flows provided by operations of $19.3 million, which will result in a revised balance of $871.2 million, an overstatement of net cash flows provided by investing activities of $19.3 million, which will result in a revised balance of $1,463.8 million, with no impact on net cash flows used in financing activities. Year ended December 31, 2014 The amounts presented comparatively for the year ended December 31, 2014 in the Company’s Form 10-K for the year ended December 31, 2016 will be revised for these misclassifications. For the year ended December 31, 2014, the misclassifications resulted in an understatement of net cash flows provided by operations of $13.7 million, which will result in a revised balance of $1,206.4 million, an understatement of net cash flows used in investing activities of $13.7 million, which will result in a revised balance of $(981.4) million, with no impact on net cash flows used in financing activities. These revisions had no impact on the Company’s reported net income, shareholders’ equity, ne t change in cash, total assets, or total liabilities for any period. SIGNIFICANT ACCOUNTING POLICIES Significant accounting policies are included with the current Form 10-K on file. There were no material changes to these policies during the nine months ended September 30, 2016 except for applicable updates to reflect the change in segment and classes. Accounting Pronouncements Adopted During the first quarter of 2016, the Company adopted the following Accounting Standards Updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”): · ASU 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period ; · ASU 2015-01, Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items ; · ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis ; · ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs ; and · ASU 2015-15, Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting. Stock Compensation ASU 2014-12 directs that a performance target that affects vesting and can be achieved after the requisite service period is a performance condition. That is, compensation cost would be recognized over the required service period if it is probable that the performance condition would be achieved. The total amount of compensation cost recognized during and after the requisite service period would reflect the number of awards that are expected to vest and would be adjusted to reflect those awards that ultimately vest. The ASU does not require additional disclosures. CIT adopted this ASU, effective January 1, 2016, for all awards granted or modified after the effective date. Adoption of this guidance did not have a significant impact on CIT’s financial statements or disclosures. Extraordinary and Unusual Items ASU 2015-01 eliminates the concept of extraordinary item s and the need for entities to evaluate whether transactions or events are both unusual in nature and infrequently occurring. The ASU precludes (1) segregating an extraordinary item from the results of ordinary operations; (2) presenting separately an extraordinary item on the income statement, net of tax, after income from continuing operations; and (3) disclosing income taxes and earnings-per-share data applicable to an extraordinary item. However, the ASU does not affect the reporting and disclosure requirements for an event or transaction that is unusual in nature or that occurs infrequently. Consequently, although the Company will no longer need to determine whether a transaction or event is both unusual in nature and infrequently occurring, CIT will still need to assess whether items are unusual in nature or infrequent to determine if the additional presentation and disclosure requirements for these items apply. CIT adopted this ASU effective January 1, 2016 . Adoption of this guidance did not have a significant impact on CIT’s financial statements or disclosures. Consolidation ASU 2015-02 amended the current consolidation guidance to change 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 variable interest entity (“VIE”), and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. It also eliminates the VIE consolidation model based on majority exposure to variability that applied to certain investment companies and similar entities. The Board changed the way the voting rights characteristic in the VIE scope determination is evaluated for corporations, which may significantly impact entities for which decision making rights are conveyed through a contractual arrangement. Under ASU 2015-02: · More limited partnerships and similar entities will be evaluated for consolidation under the revised consolidation requirements that apply to VIEs. · Fees paid to a decision maker or service provider are less likely to be considered a variable interest in a VIE. · Variable interests in a VIE held by related parties of a reporting enterprise are less likely to require the reporting enterprise to consolidate the VIE. · There is a new approach for determining whether equity at-risk holders of entities that are not similar to limited partnerships have power to direct the entity’s key activities when the entity has an outsourced manager whose fee is a variable interest. · The deferral of consolidation requirements for certain investment companies and similar entities of the VIE in ASU 2009-17 is eliminated. The impacts of the update include: · A new consolidation analysis is required for VIEs, including many limited partnerships and similar entities that previously were not considered VIEs. · It is less likely that the general partner or managing member of limited partnerships and similar entities will be required to consolidate the entity when the other investors in the entity lack both participating rights and kick-out rights. · Limited partnerships and similar entities that are not VIEs will not be consolidated by the general partner. · It is less likely that decision makers or service providers involved with a VIE will be required to consolidate the VIE. · Entities for which decision making rights are conveyed through a contractual arrangement are less likely to be considered VIEs. · Reporting enterprises with interests in certain investment companies and similar entities that are considered VIEs will no longer evaluate those entities for consolidation based on majority exposure to variability. CIT adopted ASU 2015-02, effective January 1, 2016, under the modified retrospective approach. Based on CIT’s re-assessment of its VIEs under the amended guidance, the adoption of this ASU did not have a significant impact on CIT’s financial statements or disclosures. Debt Issuance Costs ASU 2015-03 requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. Debt issuance costs are specific incremental costs, other than those paid to the lender, that are directly attributable to issuing a debt instrument ( i.e., third party costs). Prior to the issuance of the standard, debt issuance costs were required to be presented in the balance sheet as a deferred charge ( i.e., an asset). ASU 2015-15 clarified ASU 2015-03, which did not address the balance sheet presentation of debt issuance costs that are either (1) incurred before a debt liability is recognized ( e.g., before the debt proceeds are received), or (2) associated with revolving debt arrangements. ASU 2015-15 states that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing deferred debt issuance costs ratably over the term of the LOC arrangement, regardless of whether there are outstanding borrowings under that LOC arrangement. In accordance with the new guidance, CIT reclassified deferred debt costs previously included in other assets to borrowings in the first quarter of 2016 and conformed prior periods. The adoption of this guidance did not have a significant impact on CIT’s financial statements or disclosures. Recent Accounting Pronouncements The following accounting pronouncements have been issued by the FASB but are not yet effective: · ASU 2014-09, Revenue from contracts with customers (Topic 606) · ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern; · ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date; · ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ; · ASU 2016-02, Leases (Topic 842) ; · ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships ; · ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments ; · ASU 2016-07, Investments—Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting ; · ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) ; · ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting; · ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing ; · ASU 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC guidance because of ASU 2014-09 and ASU 2014-16 pursuant to staff announcements at the March 3, 2016 EITF meeting; · ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients; · ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments; and · ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern ASU 2014-15 describes how entities should assess their ability to meet their obligations and sets disclosure requirements about how this information should be communicated. The standard will be used along with existing auditing standards, and provides the following key guidance: 1. Entities must perform a going concern assessment by evaluating their ability to meet their obligations for a look-forward period of one year from the financial statement issuance date (or date the financial statements are available to be issued). 2. Disclosures are required if it is probable an entity will be unable to meet its obligations within the look-forward period. Incremental substantial doubt disclosure is required if the probability is not mitigated by management’s plans. 3. Pursuant to the ASU, substantial doubt about an entity’s ability to continue as a going concern exists if it is probable that the entity will be unable to meet its obligations as they become due within one year after the date the annual or interim financial statements are issued or available to be issued (assessment date). The new standard applies to all entities for the first annual period ending after December 15, 2016. Company management is responsible for assessing going concern uncertainties at each annual and interim reporting period thereafter. The adoption of this guidance is not expected to have a significant impact on CIT’s financial statements or disclosures. Financial Instruments ASU 2016-01 addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The main objective is enhancing the reporting model for financial instruments to provide users of financial statements with more decision-useful information. The amendments to current GAAP are summarized as follows: · Supersede current guidance to classify equity securities into different categories ( i.e., trading or available-for-sale); · Require equity investments to be measured at fair value with changes in fair value recognized in net income, rather than other comprehensive income. This excludes those investments accounted for under the equity method, or those that result in consolidation of the investee; · Simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment (similar to goodwill); · Eliminate the requirement to disclose the method(s) and significant assumptions used to estimate fair value that is required to be disclosed for financial instruments measured at amortized cost; · Require the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes; · Require an entity to present separately in other comprehensive income the portion of the change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with fair value option for financial instruments; · Require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset ( i.e., securities, or loans and receivables) on the balance sheet or accompanying notes to the financial statements; · Clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. For public business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. CIT is currently evaluating the impact of adopting this amendment on its financial instruments. Leases ASU 2016-02, which is intended to increase transparency and comparability of accounting for lease transactions, will require all leases to be recognized on the balance sheet as lease assets and lease liabilities. 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. Lessees will need to recognize a right-of-use asset and a lease liability for virtually all of their leases. The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustment, such as for initial direct costs. 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. The ASU will require both quantitative and qualitative disclosures regarding key information about leasing arrangements. The standard is effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. 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. CIT is currently evaluating the effect of this ASU on its financial statements and disclosures. Derivatives and Hedge Accounting ASU 2016-05 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 dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. An entity will, however, still need to evaluate whether it is probable that the counterparty will perform under the contract as part of its ongoing effectiveness assessment for hedge accounting. Therefore, a novation (replacing one counterparty to a derivative instrument with a new counterparty) of a derivative to a counterparty with a sufficiently high credit risk could still result in the dedesignation of the hedging relationship. The new guidance, which may be applied either on a prospective basis or a modified retrospective basis, is effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. CIT is currently reviewing the impact of adopting this guidance on CIT’s financial statement or disclosures. ASU 2016-06 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 rates or credit risks. The new guidance is effective for public business entities in interim and annual periods in fiscal years beginning after December 15, 2016. Early adoption is permitted in any interim period for which the entity’s financial statements have not been issued but would be retroactively applied to the beginning of the year that includes that interim period. CIT is currently evaluating the effect of this ASU on its financial statements and disclosures. Equity Method and Joint Ventures ASU 2016-07 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 for investments that qualify for the equity method of accounting after the effective date. For all entities, public and nonpublic, the new standard is effective for interim and annual periods beginning after December 15, 2016. Early adoption is permitted. CIT is currently evaluating the effect of this ASU on its financial statements and disclosures. Revenue Recognition ASU 2014-09 will supersede virtually all of the revenue recognition guidance in GAAP, except as it relates to lease accounting. The core principle of the five-step model is that a company will recognize revenue when it transfers control of goods or services to customers at an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. In doing so, many companies will have to make more estimates and use more judgment than they do under current GAAP. The five-step analysis of transactions, to determine when and how revenue is recognized, includes: 1. Identify the contract with the customer. 2. Identify the performance obligations in the contract. 3. Determine the transaction price. 4. Allocate the transaction price to the performance obligations. 5. Recognize revenue when or as each performance obligation is satisfied. Companies can choose to apply the standard using either the full retrospective approach or a modified retrospective approach. Under the modified approach, financial statements will be prepared for the year of adoption using the new standard, but prior periods will not be adjusted. Instead, companies 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 today’s revenue guidance. ASU 2015-14 deferred the effective date one year for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period, which means CIT would apply the standard in their SEC filings for the first quarter of 2018. Public companies that choose full retrospective application will need to apply the standard to amounts they report for 2016 and 2017 on the face of their full year 2018 financial statements. ASU 2016-08 clarifies that when another party, along with the entity, is involved in providing a good or service to a customer, the entity must determine if the nature of its obligation is to provide a good or service to a customer (that is, to be a principal) or is to arrange for the good or service to be provided to the customer (that is, to act as an agent). When (or as) an entity that is a principal satisfies a performance obligation, the entity recognizes revenue in the gross amount of consideration to which it expects to be entitled in exchange for the specified good or service transferred to the customer. When (or as) an entity that is an agent satisfies a performance obligation, the entity recognizes revenue in the amount of any fee or commission to which it expects to be entitled in exchange for arranging for the specified good or service to be provided by the other party. ASU 2016-08 also amends the principal-versus agent implementation guidance and illustrations in ASU 2014-09. ASU 2016-10 clarifies identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. For identifying performance obligations, the ASU specifies that an entity is not required to assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract. In addition, an entity is permitted to account for shipping and handling activities that occur after the customer has obtained control of a good as an activity to fulfill the promise to transfer the good rather than as an additional promised service. The ASU also improves the guidance on assessing whether promises to transfer goods or services are separately identifiable. For licensing implementation, the ASU clarifies the timing of reven |
Acquisition And Disposition Act
Acquisition And Disposition Activities | 9 Months Ended |
Sep. 30, 2016 | |
Acquisition And Disposition Activities [Abstract] | |
Acquisition And Disposition Activities | NOTE 2 — ACQUISITION AND DISPOSITION ACTIVITIES ACQUISITION Duri ng 2015, the Company completed t he following significant business acquisition. OneWest Transaction Effective August 3, 2015 , CIT acquired IMB HoldCo, LLC (“IMB”) , the parent company of OneWest Bank . CIT Bank, a Utah-state chartered bank and a wholly owned subsidiary of CIT, merged with and into OneWest Bank, with OneWest Bank surviving as a wholly owned subsidiary of CIT with the name CIT Bank, National Association. CIT paid approximately $3.4 billion as consideration, comprised of approximately $1.9 billion in cash proceeds, approximately 30.9 million shares of CIT Group Inc. common stock (valued at approximately $1.5 billion at the time of closing), and approximately 168,000 restricted stock units of CIT (valued at approximately $8 million at the time of closing). Total consideration also included $116 million of cash retained by CIT as a holdback for certain potential liabilities relating to IMB and $2 million of cash for expenses of the holders’ representative. The acquisition was accounted for as a business combination, subject to the provisions of ASC 805-10-50, Business Combinations. The acquisition added approximately $21.8 billion of assets, and $18.4 billion of liabilities to CIT’s Consolidated Balance Sheet and 70 branches in Southern California. Primary reasons for the acquisition included advancing CIT’s bank deposit strategy, expanding the Company’s products and services offered to small and middle market customers, and improving CIT’s competitive position in the financial services industry. DISCONTINUED OPERATION Reverse Mortgage Servicing The Financial Freedom business, a division of CIT Bank (formerly a division of OneWest Bank) that services reverse mortgage loans, was acquired in conjunction with the OneWest Transaction. Pursuant to ASC 205-20, the Financial Freedom business is reflected as discontinued operations. The business includes the entire third party servicing of reverse mortgage operations, which consist of personnel, systems and servicing assets. The 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. In addition, continuing operations includes a portfolio of reverse mortgages, which are recorded in the Legacy Consumer Mortgage division of the Consumer and Community Banking segment, and are serviced by Financial Freedom. Based on the Company’s assessment of market and third party data, the Company recorded an impairment charge of $19 million to increase the servicing liability to $29 million at September 30, 2016, as compared to $10 million at December 31, 2015. 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. As disclosed in CIT’s Form 10-K for fiscal year 2015, CIT determined that there was a material weakness related to the HECM interest curtailment reserve included in the contingent servicing-related liability associated with this business. During the quarter ended June 30, 2016, as a result of the ongoing review to remediate the material weakness and taking into consideration the investigation being conducted by the Office of Insp ector General (“OIG”) for HUD , the Company recorded additional reserves, due to a change in estimate , of approximately $230 million, which is net of a corresponding increase in the indemnification receivable from the FDIC noted in the paragraph below. No additional net reserves were recorded to the interest curtailment reserve in the third quarter. However, in preparing the interim financial statements for the quarter ended September 30, 2016, the Company discovered and corrected an error, which was determined to be immaterial to the current and prior quarters, resulting in a $10 million pre-tax overstatement of the interest curtailment reserve that should have been recorded in the prior quarter, which was offset by other in creases to the reserve resulting from the Company’s quarterly reserving process. While the Company believes that such accrued liabilities are adequate, it is reasonably possible that such liabilities could ultimately exceed the Company’s reserve for probable and reasonably estimable losses by up to $5 million as of September 30, 2016, which decreased by $35 million from December 31, 2015. A corresponding indemnification receivable from the FDIC of $102 million and $66 million at September 30, 2016 and December 31, 2015, respectively, was recognized for the loans covered by indemnification agreements with the FDIC reported in continuing operations. The indemnification receivable is measured using the same assumptions used to measure the indemnified item (contingent liability) subject to management’s assessment of the collectability of the indemnification asset and any contractual limitations on the indemnified amount . Condensed Balance Sheet of Discontinued Operation (dollars in millions) September 30, 2016 December 31, 2015 Net Finance Receivables (1) $ 393.0 $ 449.5 Other assets (2) 59.9 51.0 Assets of discontinued operations $ 452.9 $ 500.5 Secured borrowings (1) $ 386.6 $ 440.6 Other liabilities (3) 541.2 255.6 Liabilities of discontinued operations $ 927.8 $ 696.2 (1) Net finance receivables include $385.6 million and $440.2 million of securitized balances at September 30, 2016 and December 31, 2015, respectively, and $7.4 million and $9.3 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. (3) Other liabilities include contingent liabilities, reverse mortgage servicing liabilities and other accrued liabilities. The results from discontinued operations for the quarter and nine months ended September 30, 2016 and 2015 are presented below. The three-month and nine-month results for 2016 include full period results while the three-month and nine-month results for 2015 include only the results of discontinued operations for a partial period in the third quarter of 2015 in connection with the OneWest Transaction for Financial Freedom. Condensed Statements of Operations (dollars in millions) Quarters Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Interest income (1) $ 2.8 $ 2.2 $ 8.7 $ 2.2 Interest expense (1) (2.5) (2.3) (8.1) (2.3) Other income (loss) (2) (10.3) 6.1 7.3 6.1 Operating expenses (3) (14.9) (11.8) (276.6) (11.8) Loss from discontinued operation before benefit for income taxes (24.9) (5.8) (268.7) (5.8) Benefit for income taxes (4) 9.3 2.1 81.3 2.1 Loss from discontinued operation, net of taxes $ (15.6) $ (3.7) $ (187.4) $ (3.7) (1) Includes amortization for the premium associated with the HECM loans and related secured borrowings. (2) For the quarter ended September 30, 2016, other income (loss) includes a $19 million impairment charge to the servicing liability related to our reverse mortgage servicing operations. (3) For the quarter and nine months ended September 30, 2016 , operating expense is comprised of $5.1 million and $11 million, respectively, in salaries and benefits, $6.6 million and $16.1 million, respectively, in professional and legal services, and $3.2 million and $10.5 million, respectively, for other expenses such as data processing, premises and equipment, and miscellaneous charges. In addition, operating expenses for the nine months ended September 30, 2016 included a one-time increase to the servicing-related reserve of approximately $230 million due to a change in estimate , which is net of a corresponding increase in the indemnification receivable from the FDIC . For the quarter and nine months ended September 30, 2015, operating expense is comprised of $4.4 million in salaries and benefits, $2.8 million in professional services and $4.6 million for other expenses such as data processing, premises and equipment, legal settlement, and miscellaneous charges. (4) For the quarter and nine months ended September 30, 2016, the Company’s tax rate for discontinued operations is 38% and 30% , respectively. For the quarter and nine months ended September 30, 2015, the Company’s tax rate for discontinued operations is 36.5% . Condensed Statement of Cash Flows (dollars in millions) Nine Months Ended September 30, 2016 September 30, 2015 Net cash flows used for operations $ (32.0) $ (1.4) Net cash flows provided by investing activities 69.8 9.8 |
Loans
Loans | 9 Months Ended |
Sep. 30, 2016 | |
Loans [Abstract] | |
Loans | NOTE 3 — LOANS The following tables and data as of September 30, 2016 include the loan balances acquired in the OneWest Transaction, which were recorded at fair value at the time of the acquisition ( August 3, 2015 ). See Note 2 — Acquisition and Disposition Activities in the Company’s Annual Report filed on Form 10-K for the year ended December 31, 2015 for details of the OneWest Transaction. Finance receivables, excluding those reflected as discontinued operations, consist of the following: Finance Receivables by Product (dollars in millions) September 30, December 31, 2016 2015 Commercial loans $ 20,341.8 $ 21,380.9 Direct financing leases and leveraged leases 2,833.7 3,427.5 Total commercial 23,175.5 24,808.4 Consumer loans 6,742.7 6,863.3 Total finance receivables 29,918.2 31,671.7 Finance receivables held for sale (1) 2,361.7 1,985.1 Finance receivables and held for sale receivables (1) $ 32,279.9 $ 33,656.8 (1) Assets held for sale on the Balance Sheet at September 30, 2016 includes finance receivables and operating lease equipment primarily related to portfolios in Canada, China, Business Air and Commercial Air . As discussed in subsequent tables, since the Company manages the credit risk and collections of finance receivables held for sale consistently with its finance receivables held for investment, the aggregate amount is presented in this table. The following table presents finance receivables by segment, based on obligor location: Finance Receivables (dollars in millions) September 30, 2016 December 31, 2015 Domestic Foreign Total Domestic Foreign Total Transportation Finance $ 317.3 $ 1,906.9 $ 2,224.2 $ 815.1 $ 2,727.0 $ 3,542.1 Commercial Banking 20,265.6 299.1 20,564.7 20,607.9 321.3 20,929.2 Consumer and Community Banking (1) 7,129.3 – 7,129.3 7,200.4 – 7,200.4 Total $ 27,712.2 $ 2,206.0 $ 29,918.2 $ 28,623.4 $ 3,048.3 $ 31,671.7 (1) The Consumer and Community 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 finance receivables: Components of Net Investment in Finance Receivables (dollars in millions) (1) September 30, December 31, 2016 2015 Unearned income $ (715.7) $ (870.4) Unamortized premiums / (discounts) (39.1) (34.0) Accretable yield on Purchased Credit-Impaired ("PCI") loans 1,256.8 1,294.0 Net unamortized deferred costs and (fees) (1) 49.0 42.9 (1) Balance relates to Commercial Banking and Transportation Finance segments. Certain of the following tables present credit-related information at the “class” level in accordance with ASC 310-10-50, Disclosures about the Credit Quality of Finance Receivables and the Allowance for Credit Losses . A class is generally a disaggregation of a portfolio segment. In determining the classes, CIT considered the finance receivable 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 – finance receivables 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 finance receivables 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 Finance and Held for Sale Receivables – Risk Rating by Class / Segment (dollars in millions) Grade: Pass Special Mention Classified- accruing Classified- non-accrual PCI Loans Total September 30, 2016 Transportation Finance Aerospace $ 1,301.6 $ 231.5 $ 53.0 $ 5.0 $ – $ 1,591.1 Rail 103.6 1.4 1.3 – – 106.3 Maritime Finance 845.6 170.3 496.1 49.4 – 1,561.4 Total Transportation 2,250.8 403.2 550.4 54.4 – 3,258.8 Commercial Banking Commercial Finance 7,049.5 751.9 602.4 131.1 45.1 8,580.0 Real Estate Finance 5,060.5 178.0 92.5 6.9 76.0 5,413.9 Business Capital 6,055.2 533.0 272.4 41.9 – 6,902.5 Total Commercial Banking 18,165.2 1,462.9 967.3 179.9 121.1 20,896.4 Consumer & Community Banking Other Consumer Banking (1) 348.5 13.5 20.2 0.1 4.3 386.6 Non- Strategic Portfolios 814.4 52.5 46.8 40.0 – 953.7 Total $ 21,578.9 $ 1,932.1 $ 1,584.7 $ 274.4 $ 125.4 $ 25,495.5 December 31, 2015 Transportation Finance Aerospace $ 1,635.7 $ 65.0 $ 46.2 $ 15.4 $ – $ 1,762.3 Rail 118.9 1.4 0.6 – – 120.9 Maritime Finance 1,309.0 162.0 207.4 – – 1,678.4 Total Transportation Finance 3,063.6 228.4 254.2 15.4 – 3,561.6 Commercial Banking Commercial Finance 8,215.0 626.4 389.9 131.5 69.4 9,432.2 Real Estate Finance 5,143.2 97.6 18.6 3.6 94.6 5,357.6 Business Capital 5,649.0 517.0 320.1 56.0 – 6,542.1 Total Commercial Banking 19,007.2 1,241.0 728.6 191.1 164.0 21,331.9 Consumer & Community Banking Other Consumer Banking (1) 300.6 12.1 18.3 – 5.3 336.3 Non- Strategic Portfolios 1,286.3 115.4 60.1 56.0 – 1,517.8 Total $ 23,657.7 $ 1,596.9 $ 1,061.2 $ 262.5 $ 169.3 $ 26,747.6 (1) The Consumer and Community 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. 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 finance receivables 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 if losses occur within the indemnification period . Covered loans are discussed further in Note 5 – Indemnif ication Assets . Included in the consumer loan balances as of September 30, 2016 and December 31, 2015, were loans with terms that permitted negative amortization with an unpaid principal balance of $813 million and $966 million, respectively. Consumer Loan LTV Distribution (dollars in millions) Single Family Residential Reverse Mortgage Covered Loans Non-covered Loans Total Single Family Covered Loans Non-covered loans Total Reverse Total Consumer LTV Range Non- PCI PCI Non- PCI PCI Residential Non- PCI Non- PCI PCI Mortgages Loans September 30, 2016 Greater than 125% $ 1.6 $ 296.0 $ 13.7 $ – $ 311.3 $ 0.6 $ 7.6 $ 33.0 $ 41.2 $ 352.5 101% - 125% 3.2 489.8 14.3 – 507.3 1.1 11.7 10.2 23.0 530.3 80% - 100% 281.7 577.7 34.3 – 893.7 26.5 40.8 8.2 75.5 969.2 Less than 80% 1,559.0 871.2 1,720.0 9.1 4,159.3 415.4 304.2 9.6 729.2 4,888.5 Not Applicable (1) – – 2.2 2.2 – – – – 2.2 Total $ 1,845.5 $ 2,234.7 $ 1,784.5 $ 9.1 $ 5,873.8 $ 443.6 $ 364.3 $ 61.0 $ 868.9 $ 6,742.7 December 31, 2015 Greater than 125% $ 1.1 $ 395.6 $ 0.8 $ 15.7 $ 413.2 $ 1.0 $ 3.9 $ 39.3 $ 44.2 $ 457.4 101% - 125% 3.6 619.9 0.2 14.9 638.6 2.5 6.5 17.0 26.0 664.6 80% - 100% 449.3 552.1 14.3 11.4 1,027.1 26.5 37.4 7.0 70.9 1,098.0 Less than 80% 1,621.0 829.3 1,416.1 12.9 3,879.3 432.6 312.5 11.1 756.2 4,635.5 Not Applicable (1) – – 7.8 – 7.8 – – – – 7.8 Total $ 2,075.0 $ 2,396.9 $ 1,439.2 $ 54.9 $ 5,966.0 $ 462.6 $ 360.3 $ 74.4 $ 897.3 $ 6,863.3 (1) Certain Consumer Loans do not have LTV’s, including the Credit Card portfolio. Covered loans are l imited to the Consumer and Community Ban king segment. The following table summarizes the covered loans (single family residential and reverse mortgages) as of September 30, 2016 and December 31, 2015 : Covered Loans (dollars in millions) September 30, 2016 December 31, 2015 Consumer and Community Banking loans HFI at carrying value PCI $ 2,234.7 $ 2,396.9 Non-PCI 2,289.1 2,537.6 Total $ 4,523.8 $ 4,934.5 Past Due and Non-accrual Loans The table that follows presents portfolio delinquency status, regardless of accrual/non-accrual classification: Past Due Finance and Held for Sale Receivables (dollars in millions) Past Due 30–59 Days 60–89 Days 90 Days or Total PCI Loans Past Due Past Due Greater Past Due Current (1) (2) Total Finance Receivables September 30, 2016 Transportation Finance Aerospace $ – $ 0.3 $ 0.2 $ 0.5 $ 1,590.6 $ – $ 1,591.1 Rail 1.4 0.7 1.9 4.0 102.3 – 106.3 Maritime Finance – – – – 1,561.4 – 1,561.4 Total Transportation Finance 1.4 1.0 2.1 4.5 3,254.3 – 3,258.8 Commercial Banking Commercial Finance – 34.9 32.1 67.0 8,467.9 45.1 8,580.0 Real Estate Finance – 0.1 – 0.1 5,337.8 76.0 5,413.9 Business Capital 93.5 24.4 13.0 130.9 6,771.6 – 6,902.5 Total Commercial Banking 93.5 59.4 45.1 198.0 20,577.3 121.1 20,896.4 Consumer & Community Banking Legacy Consumer Mortgages 24.4 7.2 33.5 65.1 2,670.9 2,304.8 5,040.8 Other Consumer Banking 6.7 – 1.0 7.7 2,118.2 4.3 2,130.2 Total Consumer & Community Banking 31.1 7.2 34.5 72.8 4,789.1 2,309.1 7,171.0 Non-Strategic Portfolios 6.9 3.5 15.0 25.4 928.3 – 953.7 Total $ 132.9 $ 71.1 $ 96.7 $ 300.7 $ 29,549.0 $ 2,430.2 $ 32,279.9 December 31, 2015 Transportation Finance Aerospace $ 1.4 $ – $ 15.4 $ 16.8 $ 1,745.5 $ – $ 1,762.3 Rail 8.5 2.0 2.1 12.6 108.3 – 120.9 Maritime Finance – – – – 1,678.4 – 1,678.4 Total Transportation Finance 9.9 2.0 17.5 29.4 3,532.2 – 3,561.6 Commercial Banking Commercial Finance – – 20.5 20.5 9,342.3 69.4 9,432.2 Real Estate Finance 1.9 – 0.7 2.6 5,260.4 94.6 5,357.6 Business Capital 131.1 32.8 26.8 190.7 6,351.4 – 6,542.1 Total Commercial Banking 133.0 32.8 48.0 213.8 20,954.1 164.0 21,331.9 Consumer & Community Banking Legacy Consumer Mortgages 15.8 1.7 4.1 21.6 2,923.8 2,526.2 5,471.6 Other Consumer Banking 2.7 0.3 0.4 3.4 1,765.2 5.3 1,773.9 Total Consumer & Community Banking 18.5 2.0 4.5 25.0 4,689.0 2,531.5 7,245.5 Non-Strategic Portfolios 18.7 22.1 33.7 74.5 1,443.3 – 1,517.8 Total $ 180.1 $ 58.9 $ 103.7 $ 342.7 $ 30,618.6 $ 2,695.5 $ 33,656.8 (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 greater than $500,000 ), as well as other, smaller balance loans placed on non-accrual due to delinquency (generally 90 days or more for smaller commercial loans and 120 or more days regarding real estate mortgage loans). 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 (OREO and repossessed assets ) and loans 90 days or more past due and still accruing. Finance Receivables on Non-Accrual Status (dollars in millions) September 30, 2016 December 31, 2015 Held for Investment Held for Sale Total Held for Investment Held for Sale Total Transportation Finance Aerospace $ – $ 5.0 $ 5.0 $ 15.4 $ – $ 15.4 Maritime Finance 49.4 – 49.4 – – – Total Transportation Finance 49.4 5.0 54.4 15.4 – 15.4 Commercial Banking Commercial Finance 117.9 13.2 131.1 120.5 11.0 131.5 Real Estate Finance 6.9 – 6.9 3.6 – 3.6 Business Capital 41.9 – 41.9 56.0 – 56.0 Total Commercial Banking 166.7 13.2 179.9 180.1 11.0 191.1 Consumer & Community Banking Legacy Consumer Mortgages 13.9 – 13.9 4.2 0.6 4.8 Other Consumer Banking 0.3 – 0.3 – 0.4 0.4 Total Consumer & Community Banking 14.2 – 14.2 4.2 1.0 5.2 Non-Strategic Portfolios – 40.0 40.0 – 56.0 56.0 Total $ 230.3 $ 58.2 $ 288.5 $ 199.7 $ 68.0 $ 267.7 OREO and repossessed assets 88.7 127.3 Total non-performing assets $ 377.2 $ 395.0 Commercial loans past due 90 days or more accruing $ 5.2 $ 15.6 Consumer loans past due 90 days or more accruing 24.4 0.2 Total Accruing loans past due 90 days or more $ 29.6 $ 15.8 Payments received on non-accrual financing receivables 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. The table below summarizes the residential mortgage loans in the process of foreclosure and OREO : Loans in Process of Foreclosure (dollars in millions) (dollars in millions) September 30, 2016 December 31, 2015 PCI $ 221.6 $ 320.0 Non-PCI 109.6 71.0 Loans in process of foreclosure $ 331.2 $ 391.0 OREO $ 83.5 $ 118.0 Impaired Loans The Company’s policy is to review for impairment finance receivables greater than $500,000 that are on non-accrual status. Consumer and small-ticket loan and lease receivables t hat have not been modified in a restructuring, as well as short-term factoring receivables, are included (if appropriate) in the reported non-accrual balances above, but are excluded from the impaired finance receivables disclosure below as charge-offs are typically determined and recorded for such loans when they are more than 90 – 150 days past due. The following table contains information about impaired finance receivables and the related allowance for loan losses by class, exclusive of finance receivables that were identified as impaired at the date of the OneWest Transaction (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) Average Recorded Investment Unpaid Three Months Ended Nine Months Ended Recorded Principal Related September 30, September 30, Investment Balance Allowance 2016 2015 2016 2015 September 30, 2016 With no related allowance recorded: Transportation Finance Aerospace $ – $ – $ – $ – $ – $ 0.2 $ – Commercial Banking Commercial Finance 17.5 34.0 – 13.6 7.7 13.2 4.3 Business Capital 2.0 6.1 – 5.5 5.6 6.2 5.8 Real Estate Finance 0.8 0.8 – 0.8 1.7 1.5 0.8 Non-Strategic Portfolios – – – – 6.1 – 9.2 With an allowance recorded: Transportation Finance Aerospace – – – – 4.7 3.8 2.4 Maritime Finance 49.4 49.4 6.8 24.7 – 12.3 – Commercial Banking Commercial Finance 100.4 107.7 23.8 113.6 45.5 117.1 40.8 Business Capital 4.0 4.0 2.8 5.9 8.6 8.6 4.3 Real Estate Finance 3.1 3.1 0.4 3.1 – 2.4 – Non-Strategic Portfolios – – – – 11.1 – 9.1 Total Impaired Loans (1) 177.2 205.1 33.8 167.2 91.0 165.3 76.7 Total Loans Impaired at Acquisition Date and Convenience Date (2) 2,430.2 3,556.9 13.8 2,459.3 1,421.6 2,543.8 711.1 Total $ 2,607.4 $ 3,762.0 $ 47.6 $ 2,626.5 $ 1,512.6 $ 2,709.1 $ 787.8 Unpaid Average Recorded Principal Related Recorded Investment Balance Allowance Investment (3) December 31, 2015 With no related allowance recorded: Commercial Banking Commercial Finance $ 15.4 $ 22.8 $ – $ 6.5 Business Capital 6.3 9.7 – 5.9 Real Estate Finance 0.2 0.8 – 0.7 Non-Strategic Portfolios – – – 7.3 With an allowance recorded: Transportation Finance Aerospace 15.4 15.4 0.4 5.0 Commercial Banking Commercial Finance 102.6 112.1 22.7 53.2 Business Capital 9.7 11.7 4.7 5.4 Non-Strategic Portfolios – – – 7.3 Total Impaired Loans (1) 149.6 172.5 27.8 91.3 Total Loans Impaired at Acquisition Date and Convenience Date (2) 2,695.5 3,977.3 4.9 1,108.0 Total $ 2,845.1 $ 4,149.8 $ 32.7 $ 1,199.3 (1) I nterest income recorded for the three and nine months ended September 30, 2016 and the year ended December 31, 2015 while the loans were impaired were $0.5 million, $1.4 million and $1. 5 million of which $0.2 million, $0.6 million and $0.5 million was interest recognized using cash-basis method of accounting, respectively. Interest income recorded for the three and nine months ended September 30, 2015 while the loans were impaired were $0.2 million and $0.8 million of which $0.1 million was interest recognized using cash-basis method of accounting . (2) Details of finance receivables that were identified as impaired at the Acquisition Date are presented under Loans Acquired with Deteriorated Credit Quality . (3) Average recorded investment for the year ended December 31, 2015. 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) a nd 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 related 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. Impairment is measured as the shortfall between estimated value and recorded investment in the finance receivable. A specific allowance or charge-off is recorded for the shortfall. In instances where the estimated value exceeds the recorded investment, no specific allowance is recorded. The estimated value is determined using fair value of collateral and other cash flows if the finance receivable is collateralized, the present value of expected future cash flows discounted at the contract’s effective interest rate, or market price. A shortfall between the estimated value and recorded investment in the finance receivable 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 . 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 (1) (dollars in millions) (1) September 30, 2016 Unpaid Principal Balance Carrying Value Allowance for Loan Losses Commercial Banking Commercial Finance $ 74.9 $ 45.1 $ 1.8 Real Estate Finance 122.1 76.0 3.8 Consumer & Community Banking Other Consumer Banking 5.6 4.3 – Legacy Consumer Mortgages 3,354.3 2,304.8 8.2 $ 3,556.9 $ 2,430.2 $ 13.8 December 31, 2015 Unpaid Principal Balance Carrying Value Allowance for Loan Losses Commercial Banking Commercial Finance $ 115.5 $ 69.4 $ 2.5 Real Estate Finance 161.1 94.6 0.6 Consumer & Community Banking Other Consumer Banking 6.8 5.3 – Legacy Consumer Mortgages 3,693.9 2,526.2 1.8 $ 3,977.3 $ 2,695.5 $ 4.9 (1) PCI loans from prior transactions were not significant and are not included. The following table summarizes commercial PCI loans within Commercial Banking , 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. September 30, 2016 (dollars in millions) Non- criticized Criticized Total Commercial Finance $ 5.2 $ 39.9 $ 45.1 Real Estate Finance 35.9 40.1 76.0 Total $ 41.1 $ 80.0 $ 121.1 December 31, 2015 Non- criticized Criticized Total Commercial Finance $ 5.3 $ 64.1 $ 69.4 Real Estate Finance 33.2 61.4 94.6 Total $ 38.5 $ 125.5 $ 164.0 Non-criticized loans generally include loans that are expected to be repaid in accordance with contractual loan terms. Criticized loans are risk rated as special mention or classified. 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 reco gnized 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. The difference between the cash flows contractually required to be paid, measured as of the Acquisition D ate, over the expected cash flows is referred to as the non-accretable difference. Subsequent to acquisition, we evaluate our estimates of the cash flows expected to be collected on a quarterly basis. Probable and significant d ecreases 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 credit losses. Probable and significant i ncreases in expected cash flows due to improved credit quality result in re versal 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. Changes in expected cash flows caused by changes in market interest rates or by prepayments are recognized as adjustments to the accretable yield on a prospective basis. Changes in the accretable yield for PCI loans are summarized below . (dollars in millions) September 30, 2016 Quarter Ended Nine Months Ended Beginning Balance $ 1,274.8 $ 1,294.0 Accretion into interest income (48.4) (149.3) Reclassification from non-accretable difference 35.8 146.2 Disposals and Other (5.4) (34.1) Balance at September 30, 2016 $ 1,256.8 $ 1,256.8 Quarter and Nine Months Ended September 30, 2015 Balance at August 3, 2015 (1) $ 1,254.8 Accretion into interest income (32.1) Reclassification from non-accretable difference 0.1 Disposals and Other (5.9) Balance at September 30, 2015 $ 1,216.9 (1) Balance at August 3, 2015 reflects reclassification of certain PCI loans and measurement period adjustments. Refer to the Company’s December 31, 2015 Form 10-K for further discussion. Troubled Debt Restructurings The Company periodically modifies the terms of finance receivables 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 its 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 receivable 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, which we classify and account for as TDRs. 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 (“MHA”) 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 and other MHA programs are set to expire on December 31, 2016 (the last day to submit an application). At September 30, 2016 , the loans in trial modification period were $37.8 million under HAMP, $0.3 million under 2MP and $4.7 million under proprietary programs. Trial modifications with a recorded investment of $41.9 million at September 30, 2016 were accruing loans and $0.9 million were non-accruing loans. At December 31, 2015, the loans in trial modification period were $26.2 million under HAMP, $0.1 million under 2MP and $5.2 million under proprietary programs. Trial modifications with a recorded investment of $31.4 million at December 31, 2015 were accruing loans and $0.1 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, at September 30, 2016 and December 31, 2015 was $62.2 million and $40.2 million, of which 87% and 63% , respectively, were on non-accrual. Commercial Banking , NSP and Consumer and Community Banking receivables accounted for 74% , 7% and 18% of the total TDRs, respectively, at September 30, 2016 . Commercial Banking and Transportation Finance receivables accounted for 61% and 26% of the total TDRs, respectively at December 31, 2015 . T here were $4.8 million and $1.4 million as of September 30, 2016 and December 31, 2015 , 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 quarters ended September 30, 2016 and 2015 were $39.4 million and $17.3 million, respectively , and $58.1 million and $20.1 million for the nine month periods, respectively . The recorded investment as of September 30, 2016 and 2015 of TDRs that experience a payment default (payment default is one missed payment), during the quarters ended September 30, 2016 and 2015, and for which the payment default occurred within one year of the modification totaled $10.5 million and $0.4 million, respectively , and $12.6 million and $4.5 million for the nine month periods, respectively . The defaults that occurred during the current quarter and year to date related to Commercial Banking, Consumer and Community Banking and Non-Strategic Portfolios and the September 30, 2015 defaults related to Commercial Banking and Non-Strategic Portfolios . The financial impact of the various modification strategies that the Company employs in response to borrower difficul |
Allowance For Loan Losses
Allowance For Loan Losses | 9 Months Ended |
Sep. 30, 2016 | |
Allowance For Loan Losses [Abstract] | |
Allowance For Loan Losses | NOTE 4 — ALLOWANCE FOR LOAN LOSSES The Company maintains an allowance for loan losses for estimated credit losses in its HFI loan portfolio. The allowance is adjusted through a provision for credit losses, which is charged against current period earnings, and reduced by any charge-offs for losses, net of recoveries. The Company maintains a separate reserve for credit losses on off-balance sheet commitments, which is reported in Other Liabilities. Off-balance sheet credit exposures include items such as unfunded loan commitments, issued standby letters of credit and deferred purchase agreements. The Company’s methodology for assessing the appropriateness of this reserve is similar to the allowance process for outstanding loans. Allowance for Loan Losses and Recorded Investment in Finance Receivables (dollars in millions) Transportation Finance Commercial Banking Consumer & Community Banking Non-Strategic Portfolios Corporate and Other Total Quarter Ended September 30, 2016 Balance - June 30, 2016 $ 51.3 327.6 $ 20.5 $ – $ – $ 399.4 Provision for credit losses 5.5 39.2 1.6 (0.1) – 46.2 Other (1) – (2.8) 2.3 – – (0.5) Gross charge-offs (2) (2.1) (27.7) (0.7) – – (30.5) Recoveries – 6.2 0.8 0.1 – 7.1 Balance - September 30, 2016 $ 54.7 $ 342.5 $ 24.5 $ – $ – $ 421.7 Nine Months Ended September 30, 2016 Balance - December 31, 2015 $ 39.4 $ 310.5 $ 10.3 $ – $ – $ 360.2 Provision for credit losses 43.8 124.1 5.8 (0.1) – 173.6 Other (1) (0.2) (4.1) 7.9 – 3.6 Gross charge-offs (2) (28.3) (101.5) (1.9) – – (131.7) Recoveries – 13.5 2.4 0.1 – 16.0 Balance - September 30, 2016 $ 54.7 $ 342.5 $ 24.5 $ – $ – $ 421.7 Allowance balance at September 30, 2016 Loans individually evaluated for impairment $ 6.8 $ 27.0 $ – $ – $ – $ 33.8 Loans collectively evaluated for impairment 47.9 309.9 16.3 – – 374.1 Loans acquired with deteriorated credit quality (3) – 5.6 8.2 – – 13.8 Allowance for loan losses $ 54.7 $ 342.5 $ 24.5 $ – $ – $ 421.7 Other reserves (1) $ 0.4 $ 47.1 $ 0.2 $ – $ – $ 47.7 Finance receivables at September 30, 2016 Loans individually evaluated for impairment $ 49.4 $ 127.8 $ – $ – $ – $ 177.2 Loans collectively evaluated for impairment 2,174.8 20,315.8 4,820.2 – – 27,310.8 Loans acquired with deteriorated credit quality (3) – 121.1 2,309.1 – – 2,430.2 Ending balance $ 2,224.2 $ 20,564.7 $ 7,129.3 $ – $ – $ 29,918.2 Percent of loans to total loans 7.4% 68.8% 23.8% 0% 0% 100% Transportation Finance Commercial Banking Consumer & Community Banking Non-Strategic Portfolios Corporate and Other Total Quarter Ended September 30, 2015 Balance - June 30, 2015 $ 33.4 $ 277.6 $ – $ 39.9 $ – $ 350.9 Provision for credit losses (1.6) 43.2 5.1 3.2 – 49.9 Other (1) 0.1 (3.1) – (1.5) – (4.5) Gross charge-offs (2) (0.1) (22.8) (1.6) (42.9) – (67.4) Recoveries – 4.3 0.5 1.3 – 6.1 Balance - September 30, 2015 $ 31.8 $ 299.2 $ 4.0 $ 0.0 $ – $ 335.0 Nine Months Ended September 30, 2015 Balance - December 31, 2014 $ 26.5 $ 282.5 $ – $ 37.4 $ – $ 346.4 Provision for credit losses 5.9 85.6 5.1 6.3 – 102.9 Other (1) 0.1 (5.9) – (2.8) – (8.6) Gross charge-offs (2) (0.8) (75.2) (1.6) (50.6) – (128.2) Recoveries 0.1 12.2 0.5 9.7 – 22.5 Balance - September 30, 2015 $ 31.8 $ 299.2 $ 4.0 $ – $ – $ 335.0 Allowance balance at September 30, 2015 Loans individually evaluated for impairment $ 0.9 $ 17.4 $ – $ – $ – $ 18.3 Loans collectively evaluated for impairment 30.9 281.8 3.6 – – 316.3 Loans acquired with deteriorated credit quality (3) – – 0.4 – – 0.4 Allowance for loan losses $ 31.8 $ 299.2 $ 4.0 $ – $ – $ 335.0 Other reserves (1) $ – $ 40.6 $ – $ 0.2 $ – $ 40.8 Finance receivables at September 30, 2015 Loans individually evaluated for impairment $ 4.7 $ 97.5 $ – $ – $ – $ 102.2 Loans collectively evaluated for impairment 3,300.8 21,553.3 4,606.8 – – 29,460.9 Loans acquired with deteriorated credit quality (3) – 198.7 2,644.4 – – 2,843.1 Ending balance $ 3,305.5 $ 21,849.5 $ 7,251.2 $ – $ – $ 32,406.2 Percentage of loans to total loans 10.2% 67.4% 22.4% 0% 0% 100% (1) “Other reserves” represents additional 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 changes relating to loans that were charged off and reimbursed by the FDIC under the indemnification provided by the FDIC, sales and foreign currency translations. (2) Gross charge-offs of amounts specifically reserved in prior periods that were charged directly to the Allowance for loan losses included $ 4 million and $27 million , for the quarter and nine months ended September 30, 2016, respectively , and $12 million and $17 million for the quarter and nine months ended September 30, 2015 . The current quarter charge-offs related to Commercial Banking for all periods . The prior year quarter charge-offs related to Commercial Banking. The prior year to date charge-offs related to Commercial Banking, and Non-Strategic Portfolios. (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). |
Idemnification Assets
Idemnification Assets | 9 Months Ended |
Sep. 30, 2016 | |
Idemnification Assets [Abstract] | |
Idemnification Assets | NOTE 5 – INDEMNIFICATION ASSETS The Company acquired the in demnifications provided by the F DIC 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”). 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 I ndyMac, 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. 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 and La Jolla Transactions as of September 30, 2016 and December 31, 2015, respectively. Indemnification Assets (dollars in millions) September 30, 2016 IndyMac La Jolla Transaction Transaction Total Loan indemnification (1) $ 249.0 $ – $ 249.0 Reverse mortgage indemnification 10.7 – 10.7 Agency claims indemnification (2) 102.5 – 102.5 Total $ 362.2 $ – $ 362.2 Receivable from (Payable to) the FDIC $ 5.5 $ (1.5) $ 4.0 December 31, 2015 IndyMac La Jolla Transaction Transaction Total Loan indemnification (1) $ 338.6 $ 0.3 $ 338.9 Reverse mortgage indemnification 10.3 – 10.3 Agency claims indemnification (2) 65.6 – 65.6 Total $ 414.5 $ 0.3 $ 414.8 Receivable from (Payable to) the FDIC $ 18.6 $ (1.9) $ 16.7 (1) As of September 30, 2016, the carrying value of the IndyM ac loan indemnification decreased by $89.6 million from December 31, 2015, which is comprised of $69.1 million in claim submissions filed with the FDIC during the period and $20.5 million in other (yield and provision for credit losses adjustments). (2) As of September 30, 2016, the carrying value of the IndyM ac agency claims indemnification increased by $36.9 million from December 31, 2015 , which is primarily attributable to an increase in the amount of servicing-related obligations covered by the loss share agreement related to reverse mortgage loans. 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 IndyMac indemnification program described below: 1. Single family residential (“SFR”) Mortgages, 2. Reverse Mortgages, and 3. Certain Servicing Obligations. SFR Mortgages 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 September 30, 2016 , the Company projects the cumulative losses will reach the final loss threshold of “meets or exceeds stated threshold” ( $3.826 billion) in July 2017 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 September 30, 2016 and December 31, 2015, respectively: Submission of Qualifying Losses for Reimbursement (dollars in millions) September 30, 2016 December 31, 2015 Unpaid principal balance $ 3,969.0 $ 4,372.8 Cumulative losses incurred 3,717.8 3,623.4 Cumulative claims 3,710.3 3,608.4 Cumulative reimbursement 884.8 802.6 Reverse Mortgages 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 September 30, 2016 and December 31, 2015, $145.7 million and $152.4 million , respectively, had been advanced on the reverse mortgage loans post March 20 09. Prior to the OneWest acquisition, the cumulative loss submissions and reimbursements totaled $1.8 million from the FDIC. From August 3, 2015 (the acquisition date of OneWest Bank) through September 30, 2016 , the Company was reimbursed $1.2 million from the FDIC for the cumulative losses incurred. 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 Indy Mac 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: 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. The Company had no submitted claims from acquisition date through September 30, 2016 . 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. 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. The Company ha d submitted $0.2 million in claim s from acquisition date through September 30, 2016 . Prior to the OneWest acquisition, 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. 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 September 30, 2016 , 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. The following table summarizes the submission of qualifying losses for reimbursement from the FDIC since inception of the loss share agreement: Submission of Qualifying Losses for Reimbursement (dollars in millions) September 30, 2016 SFR Commercial (1) Total Unpaid principal balance $ 1,302.3 $ – $ 1,302.3 Cumulative losses incurred 415.1 9.0 424.1 Cumulative claims 414.8 9.0 423.8 Cumulative reimbursement - – - December 31, 2015 SFR Commercial (1) Total Unpaid principal balance $ 1,456.8 $ – $ 1,456.8 Cumulative losses incurred 408.5 9.0 417.5 Cumulative claims 407.2 9.0 416.2 Cumulative reimbursement - - - (1) Due to the expiration of the loss share agreement covering commercial loans in December 2014, the outstanding unpaid principal balance eligible for reimbursement is zero . As provided by the loss share agreement, the loss recoveries for commercial loans extend for three years from expiration date (December 2017). As such, the cumulative losses incurred, claim submissions and reimbursements for commercial loans are reduced by the reported recoveries. As reflected above, the cumulative losses incurred have not reached the specified level ( $932 million) for FDIC reimbursement and the Company does not project to reach the specified level of losses. Accordingly, 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 to reach the First Loss Tranche ($932 million) for FDIC reimbursement, the Company does not expect that such true-up payment will be 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 September 30, 2016 , 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. The following table summarizes the submission of cumulative qualifying losses for reimbursement from the FDIC since inception of the loss share agreement: Submission of Qualifying Losses for Reimbursement (dollars in millions) September 30, 2016 SFR Commercial (1) Total Unpaid principal balance $ 73.0 $ – $ 73.0 Cumulative losses incurred 56.3 353.6 409.9 Cumulative claims 56.3 353.6 409.9 Cumulative reimbursement 45.0 282.9 327.9 December 31, 2015 SFR Commercial (1) Total Unpaid principal balance $ 89.3 $ – $ 89.3 Cumulative losses incurred 56.2 359.5 415.7 Cumulative claims 56.2 359.5 415.7 Cumulative reimbursement 45.0 287.6 332.6 (1) Due to the expiration of the loss share agreement covering commercial loans in March 2015, the outstanding unpaid principal balance eligible for reimbursement is zero . As provided by the loss share agreement, the loss recoveries for commercial loans extend for three years from expiration date (March 2018). As such, the cumulative losses incurred, claim submissions and reimbursements for commercial loans are reduced by the reported recoveries. 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 September 30, 2016 and December 31, 2015, an obligation of $61.3 million and $56.9 million, respectively, has been recorded as a FDIC true-up liability for the contingent paym ent measured at estimated fair value. Refer to Note 10 — Fair Value for further discussion . |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2016 | |
Investment Securities [Abstract] | |
Investment Securities | NOTE 6— INVESTMENT SECURITIES Investments include debt and equity securities. The Company’s debt securities include U.S. Government Agency securities, U.S. Treasury securities, residential mortgage-backed securities (“MBS”), and supranational and foreign government securities. Equity securities include common stock and warrants, along with restricted stock in the FHLB and FRB. Investment Securities (dollars in millions) September 30, December 31, 2016 2015 Available-for-sale securities Debt securities $ 2,729.2 $ 2,007.8 Equity securities 34.8 14.3 Held-to-maturity securities Debt securities (1) 254.4 300.1 Securities carried at fair value with changes recorded in net income Debt securities 301.3 339.7 Non-marketable investments (2) 272.7 291.9 Total investment securities $ 3,592.4 $ 2,953.8 (1) Recorded at amortized cost. (2) Non-marketable investments include securities of the FRB and FHLB carried at cost of $253.7 million at September 30, 2016 and $263.5 million at December 31, 2015. 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 $19.0 million and $28.4 million at September 30, 2016 and December 31, 2015, respectively. Realized investment gains totaled $5.1 million and $2. 1 million for the quarter s ended September 30, 2016 and 2015, and $6.6 million and $6.7 million for the nine months ended September 30, 2016 and 2015, respectively, and exclude losses from OTTI. In addition, the Company maintained $ 6.5 billion and $6. 8 billion of interest bearing deposits at September 30, 2016 and December 31, 2015 , 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) Quarters Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Interest income - investments $ 19.8 $ 4.5 $ 58.8 $ 11.9 Interest income - interest bearing deposits 9.5 15.0 26.7 24.2 Dividends - investments 3.2 4.0 9.6 5.0 Total interest and dividends $ 32.5 $ 23.5 $ 95.1 $ 41.1 Securities Available-for-Sale The following table presents amortized cost and fair value of securities available for sale (“ AFS ”) . Securities AFS — Amortized Cost and Fair Value (dollars in millions) Gross Gross Amortized Unrealized Unrealized Fair September 30, 2016 Cost Gains Losses Value Debt securities AFS Mortgage-backed Securities U.S. government agency securities $ 838.3 $ 5.9 $ (0.2) $ 844.0 Non-agency securities 495.1 15.8 (0.5) 510.4 U.S. government agency obligations 874.9 0.2 (0.3) 874.8 U.S. Treasury Securities 99.7 0.3 – 100.0 Supranational and foreign government securities 400.0 – – 400.0 Total debt securities AFS 2,708.0 22.2 (1.0) 2,729.2 Equity securities AFS 34.7 0.3 (0.2) 34.8 Total securities AFS $ 2,742.7 $ 22.5 $ (1.2) $ 2,764.0 December 31, 2015 Debt securities AFS Mortgage-backed Securities U.S. government agency securities $ 148.4 $ – $ (0.9) $ 147.5 Non-agency securities 573.9 0.4 (7.2) 567.1 U.S. government agency obligations 996.8 – (3.7) 993.1 Supranational and foreign government securities 300.1 – – 300.1 Total debt securities AFS 2,019.2 0.4 (11.8) 2,007.8 Equity securities AFS 14.4 0.1 (0.2) 14.3 Total securities AFS $ 2,033.6 $ 0.5 $ (12.0) $ 2,022.1 The following table presents the debt securities AFS by contractual maturity dates: Securities AFS – Maturities (dollars in millions) September 30, 2016 Amortized Fair Weighted Average Cost Value Yield Mortgage-backed securities - U.S. government agency securities Due after 10 years $ 838.3 $ 844.0 2.03% Total 838.3 844.0 2.03% Mortgage-backed securities - non agency securities After 5 but within 10 years 23.3 24.1 4.93% Due after 10 years 471.8 486.3 5.85% Total 495.1 510.4 5.81% U.S. government agency obligations After 1 but within 5 years 874.9 874.8 1.23% Total 874.9 874.8 1.23% U.S. Treasury Securities After 1 but within 5 years 99.7 100.0 0.93% Total 99.7 100.0 0.93% Supranational and foreign government securities Due within 1 year 400.0 400.0 0.31% Total 400.0 400.0 0.31% Total debt securities available-for-sale $ 2,708.0 $ 2,729.2 2.17% The following table summarizes the gross unrealized losses and estimated fair value of AFS securities aggregated by investment category and length of time that the securities have been in a continuous unrealized loss position. Securities AFS – Gross Unrealized Loss ( dollars in millions) September 30, 2016 Less than 12 months 12 months or greater Gross Gross Fair Unrealized Fair Unrealized Value Loss Value Loss Debt securities AFS Mortgage-backed securities U.S. government agency securities $ 33.0 $ (0.1) $ 11.0 $ (0.1) Non-agency securities 9.4 (0.1) 29.3 (0.4) U.S. government agency obligations 174.7 (0.3) – – Total debt securities AFS 217.1 (0.5) 40.3 (0.5) Equity securities AFS 20.3 (0.2) – – Total securities available-for-sale $ 237.4 $ (0.7) $ 40.3 $ (0.5) December 31, 2015 Less than 12 months 12 months or greater Gross Gross Fair Unrealized Fair Unrealized Value Loss Value Loss Debt securities AFS Mortgage-backed securities U.S. government agency securities $ 147.0 $ (0.9) $ – $ – Non-agency securities 495.5 (7.2) – – U.S. government agency obligations 943.0 (3.7) – – Total debt securities AFS 1,585.5 (11.8) – – Equity securities AFS 0.2 (0.2) – – Total securities available-for-sale $ 1,585.7 $ (12.0) $ – $ – 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 is probable that the Company will not collect all principal and interest payments contractually required at the time of purchase. Accounting for these adjustments is discussed in Note 1 — Business and Summary of Significant Accounting Policies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . Changes in the accretable yield for PCI securities are summarized below for the quarter and nine months ended September 30, 2016 : Changes in Accretable Yield (dollars in millions) Quarter Ended Nine Months Ended September 30, 2016 September 30, 2016 Beginning Balance $ 179.2 $ 189.0 Accretion into interest income (7.1) (22.3) Reclassifications from non-accretable difference 0.6 6.0 Balance at September 30, 2016 $ 172.7 $ 172.7 Quarter Ended Nine Months Ended September 30, 2015 September 30, 2015 Beginning Balance $ 298.4 $ 298.4 Accretion into interest income (8.2) (8.2) Balance at September 30, 2015 $ 290.2 $ 290.2 The estimated fair value of PCI securities was $503.1 million and $559.6 m ill ion with a par value of $640.9 m illion and $717.1 million as of September 30, 2016, and December 31, 2015, respectively . Securities Carried at Fair Value with Changes Recorded in Net Income (dollars in millions) Gross Gross Amortized Unrealized Unrealized Fair September 30, 2016 Cost Gains Losses Value Mortgage-backed Securities - Non-agency $ 295.9 $ 6.1 $ (0.7) $ 301.3 Total securities held at fair value with changes recorded in net income $ 295.9 $ 6.1 $ (0.7) $ 301.3 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2015 Cost Gains Losses Value Mortgage-backed Securities - Non-agency $ 343.8 $ 0.3 $ (4.4) $ 339.7 Total securities held at fair value with changes recorded in net income $ 343.8 $ 0.3 $ (4.4) $ 339.7 Securities Carried at Fair Value with changes Recorded in Net Income – Amortized Cost and Fair Value Maturities (dollars in millions) September 30, 2016 Amortized Fair Weighted Average Cost Value Yield Mortgage-backed securities - non agency securities After 5 but within 10 years $ 0.2 $ 0.3 37.26% Due after 10 years 295.7 301.0 4.89% Total $ 295.9 $ 301.3 4.92% Debt Securities Held-to-Maturity The carrying value and fair value of securities held to maturity (“ HTM ”) at September 30, 2016 and December 31, 2015 were as follows: Debt Securities HTM — Carrying Value and Fair Value (dollars in millions) Gross Gross Carrying Unrealized Unrealized Fair Value Gains Losses Value September 30, 2016 Mortgage-backed securities U.S. government agency securities $ 120.6 $ 1.9 $ (0.4) $ 122.1 State and municipal 27.7 0.1 (0.8) 27.0 Foreign government 2.4 0.1 – 2.5 Corporate - foreign 103.7 6.0 – 109.7 Total debt securities held-to-maturity $ 254.4 $ 8.1 $ (1.2) $ 261.3 December 31, 2015 Mortgage-backed securities U.S. government agency securities $ 147.2 $ 1.1 $ (2.6) $ 145.7 State and municipal 37.1 – (1.6) 35.5 Foreign government 13.5 – – 13.5 Corporate - foreign 102.3 4.5 – 106.8 Total debt securities held-to-maturity $ 300.1 $ 5.6 $ (4.2) $ 301.5 The following table presents the debt securities HTM by contractual maturity dates: Debt Securities HTM — Amortized Cost and Fair Value Maturities (dollars in millions) September 30, 2016 Amortized Fair Weighted Average Cost Value Yield Mortgage-backed securities - U.S. government agency securities After 5 but within 10 years $ 1.3 $ 1.3 2.22% Due after 10 years 119.3 120.8 2.26% Total 120.6 122.1 2.26% State and municipal Due within 1 year 0.5 0.5 2.09% After 1 but within 5 years 0.5 0.5 2.46% After 5 but within 10 years 0.5 0.5 2.70% Due after 10 years 26.2 25.5 2.30% Total 27.7 27.0 2.31% Foreign government Due within 1 year 2.4 2.5 2.43% Total 2.4 2.5 2.43% Corporate - Foreign securities After 1 but within 5 years 103.7 109.7 4.28% Total 103.7 109.7 4.28% Total debt securities held-to-maturity $ 254.4 $ 261.3 3.09% The following table summarizes the gross unrealized losses and estimated fair value of HTM securities aggregated by investment category and length of time that the securities have been in a continuous unrealized loss position. Debt Securities HTM – Gross Unrealized Loss (dollars in millions) September 30, 2016 Less than 12 months 12 months or greater Gross Gross Fair Unrealized Fair Unrealized Value Loss Value Loss Mortgage-backed securities U.S. government agency securities $ – $ – $ 30.1 $ (0.4) State and municipal – – 22.0 (0.8) Total securities held-to-maturity $ – $ – $ 52.1 $ (1.2) December 31, 2015 Less than 12 months 12 months or greater Gross Gross Fair Unrealized Fair Unrealized Value Loss Value Loss Mortgage-backed securities U.S. government agency securities $ 62.2 $ (0.9) $ 40.7 $ (1.7) State and municipal 3.1 (0.1) 28.2 (1.5) Total securities held-to-maturity $ 65.3 $ (1.0) $ 68.9 $ (3.2) Other Than Temporary Impairment (“OTTI”) 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 $0.1 million and $2. 2 million as permanent write-downs for the quarter and nine months ended September 30, 2016 . There were no write-downs for the respective 2015 periods. The Company reviewed debt securities AFS and HTM with unrealized losses and determined that the unrealized losses were not OTTI. The unrealized losses were not credit-related and the Company does not have an intent to sell 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. |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2016 | |
Deposits [Abstract] | |
Deposits | NOTE 7 – DEPOSITS The following table presents detail on the type, maturities and weighted average interest rates of deposits. Deposits (dollars in millions) September 30, December 31, 2016 2015 Deposits Outstanding $ 32,854.3 $ 32,782.2 Weighted average contractual interest rate 1.22% 1.26% Weighted average remaining number of days to maturity 685 days 864 days Nine Months Ended Year Ended September 30, December 31, 2016 2015 Daily average deposits for the period $ 32,771.4 $ 23,277.8 Maximum amount outstanding for the period 33,225.1 32,899.6 Weighted average contractual interest rate for the period 1.24% 1.45% The following table provides further detail s of deposit s . Deposits – Rates and Maturities (dollars in millions) September 30, 2016 Amount Average Rate Deposits – no stated maturity Non-interest-bearing checking $ 987.1 – Interest-bearing checking 3,074.8 0.55% Money market / sweeps (1) 6,334.9 0.82% Savings 4,325.5 0.88% Other 146.2 NM (2) Total checking and savings deposits 14,868.5 Certificates of deposit, remaining contractual maturity: Within one year 9,135.4 1.13% One to two years 2,689.4 1.44% Two to three years 1,797.8 2.20% Three to four years 2,150.9 2.24% Four to five years 783.7 2.41% Over five years 1,417.9 3.15% Total certificates of deposit 17,975.1 Premium / discount (0.7) Purchase accounting adjustments 11.4 Total Deposits $ 32,854.3 (1) Includes deposit sweep arrangements related to money market and healthcare savings accounts . (2) 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 Thousand or More (dollars in millions) September 30, December 31, 2016 2015 U.S. certificates of deposit: Three months or less $ 1,624.0 $ 1,476.5 After three months through six months 1,767.5 1,462.6 After six months through twelve months 3,482.0 2,687.2 After twelve months 7,823.0 9,245.8 Total U.S. certificates of deposit $100 thousand or more $ 14,696.5 $ 14,872.1 |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2016 | |
Borrowings [Abstract] | |
Borrowings | NOTE 8 —BORROWINGS The following table presents the carrying value of outstanding borrowings. Borrowings (dollars in millions) September 30, 2016 December 31, 2015 CIT Group Inc. Subsidiaries Total Total (1) Senior Unsecured $ 10,595.1 $ – $ 10,595.1 $ 10,636.3 Secured borrowings: Structured financings – 3,515.4 3,515.4 4,687.9 FHLB advances – 2,438.2 2,438.2 3,117.6 Total Borrowings $ 10,595.1 $ 5,953.6 $ 16,548.7 $ 18,441.8 (1) December 31, 2015 balances for Senior Unsecured and Structured Financing were adjusted to include deferred debt issuance costs of $41.4 million and $55.9 million, respectively, compared to balances presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, upon adoption and in accordance with the provision in ASU 2015-03. Previously these amounts were included in other assets. Unsecure d Borrowings Second Amended and Restated Revolving Credit Facility There were no outstanding borrowings under the Second Amended and Restated Revolving Credit and Guaranty Agreement (the “Revolving Credit Facility ”) at September 30, 2016 and December 31, 2015 . The amount available to draw upon at September 30, 2016 was approximately $1.4 billion, with the remaining amount of approximately $0.1 billion being utilized for issuance of letters of credit to customers . The Revolving Credit Facility has a total commitment amount of $1.5 billion and the maturity date of the commitment is January 26, 2018 . The total commitment amount consists of a $1.15 billion revolving loan tranche and a $350 million revolving loan tranche that can also be utilized for issuance of letters of credit to customers . The applicable margin charged under the facility is 2.25% for LIBOR Rate loans and 1.25% for Base Rate loans. 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. The Revolving Credit Facility is unsecured and is guaranteed by nine of the Company’s domestic operating subsidiaries. The facility was amended in February 2016 to extend the final maturity date of the lenders’ commitments and modify the applicable margin, which depends on the Company’s long-term senior unsecured, non-credit enhanced debt rating used to calculate the interest rate for LIBOR Rate and Base Rate loans . The applicable required minimum guarantor asset coverage ratio ranges from 1.0 : 1. 0 to 1.5 :1.0 and was 1.375 : 1. 0 at September 30, 2016. The amendment also added Fitch Ratings Ltd. as a provider of the Company’s long-term senior unsecured, non-credit enhanced debt rating. The Revolving Credit Facility is subject to a $6 billion minimum consolidated net worth covenant of the Company, tested quarterly, and also limits the Company’s ability to create liens, merge or consolidate, sell, transfer, lease or dispose of all or substantially all of its assets, grant a negative pledge or make certain restricted payments during the occurrence and continuance of an event of default. Senior Unsecured Notes The following tables present the principal amounts by maturity date. Senior Unsecured Notes (dollars in millions) Maturity Date Rate (%) Date of Issuance Par Value May 2017 5.000% May 2012 $ 1,208.7 August 2017 4.250% August 2012 1,725.8 March 2018 5.250% March 2012 1,465.0 April 2018 6.625% March 2011 695.0 February 2019 5.500% February 2012 1,750.0 February 2019 3.875% February 2014 1,000.0 May 2020 5.375% May 2012 750.0 August 2022 5.000% August 2012 1,250.0 August 2023 5.000% August 2013 750.0 Weighted average rate and total 5.02% $ 10,594.5 The Indentures for the s enior u nsecured n otes 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 s enior u nsecured n otes, holders of the s enior u nsecured n otes will have the right to require the Company, as applicable, to repurchase all or a portion of the s enior u nsecured n otes 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, ther e is an unse cured note with a 6.0% coupon and a carrying value of $39 million (par value of $51 million) that matures in 2036 . Secured Borrowings At September 30, 2016 the Company had pledged assets (including collateral for the FRB discount window ) of $16.4 billion, which included $11.3 billion of loans (including amounts held for sale), $4.2 billion of operating lease assets, $0.8 billion of cash and $0.1 billion of investment securities . 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 t he advances are secured by certain Bank assets and bear either a fixed or floating interest rate. The FHL B advances are collateralized by a variety of consumer and commercial loans and leases, including SFR mortgage loans, reverse 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, commercial loans, leases and/or equipment. As of September 30, 2016 , the Company had $5.6 billion of financing availability with the FHL B, of which $2.3 billion was unused and available , and $811.6 million was being utilized for issuance of letters of credit . FHLB Advances as of September 30, 2016 have a weighted average rate of 1.09% . The following table includes the total outstanding FHLB Advances, and respective pledged assets. FHLB Advances with Pledged Assets Summary (dollars in millions) September 30, 2016 December 31, 2015 FHLB Advances Pledged Assets FHLB Advances Pledged Assets Total $ 2,438.2 $ 6,555.5 $ 3,117.6 $ 6,783.1 Structured Financings Set forth in the following table are amounts primarily related to and 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 September 30, 2016 had a weighted average rate of 3.66% , which ranged from 0.0% to 5.74% . Structured Financings and Pledged Assets Summary (1) (dollars in millions) September 30, 2016 December 31, 2015 Secured Borrowing Pledged Assets Secured Borrowing Pledged Assets Rail (2) $ 840.7 $ 1,303.7 $ 917.0 $ 1,336.1 Aerospace (2) 1,864.7 3,516.8 2,091.5 3,732.2 Subtotal - Transportation Finance 2,705.4 4,820.5 3,008.5 5,068.3 Commercial Finance – 0.2 – 0.2 Business Capital 659.6 2,255.1 1,128.6 2,434.1 Subtotal - Commercial Banking 659.6 2,255.3 1,128.6 2,434.3 Legacy Consumer Mortgages 0.4 0.4 – – Subtotal - Consumer & Community Banking 0.4 0.4 – – Non-Strategic Portfolios 150.0 249.3 550.8 712.5 Total $ 3,515.4 $ 7,325.5 $ 4,687.9 $ 8,215.1 (1) As part of our liquidity management strategy, the Company pledges assets to secure financing transactions (which include securitizations), and for other purposes as required or permitted by law while CIT Bank, N.A. also pledges assets to secure borrowings from the FHLB and FRB. (2) At September 30, 2016, the TRS related borrowings and pledged assets, respectively, of $1.1 billion and $1.7 billion were included in Transportation Finance. The TRS is described in Note 9 — Derivative Financial Instruments. Not included in the above table , are liabilities of discontinued operations consisting of $386.6 million of secured borrowings related to HECM loans securitized in the form of GNMA HMBS. See Note 2 – Acquisition and Disposition Activities . 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 September 30, 2016 or December 31, 2015. Variable Interest Entities (“VIEs”) Below describes the results of the Company’s assessment of its variable interests to determine its current status with regards to being the primary beneficiary of a VIE. 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. The Company originates pools of assets and sells these to special purpose entities, which, in turn, issue debt instruments backed by the asset pools or sells individual interests in the assets to investors. CIT retains the servicing rights and participates in certain cash flows. These VIEs are typically organized as trusts or limited liability companies, and are intended to be bankruptcy remote, from a legal standpoint. 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 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. As a result of the OneWest Transaction, the Company has certain contractual obligations related to the HECM loans and the GNMA HMBS securitizations. 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 capitalizes the servicing fees and interest income earned and is obligated to fund guarantee fees associated with the GNMA HMBS. The Company periodically pools and securitizes certain of these funded advances through issuance of HMBS to third-party security holders, which did not qualify for sale accounting and rather, are treated as financing transactions. As a financing transaction, the HECM loans and related proceeds from the issuance of the HMBS recognized as secured borrowings remain on the Company’s Consolidated Balance Sheet . Due to the Company’s planned exit of third party servicing, HECM loans of $393 million and $ 449.5 million were included in Assets of discontinued operations and the associated secured borrowing of $386.6 million and $ 440.6 million (including an unamortized premium balance of $9.3 million and $13.2 million) were included in Liabilities of discontinued operations at September 30, 2016 and December 31, 2015, respectively. As servicer, 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 $166.2 million and $189.6 million of HMBS outstanding principal balance at September 30, 2016 and December 31, 2015, 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 September 30, 2016 and December 31, 2015. 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 or quantifiable. For Agency and private label securitizations where the Company is not the servicer, the maximum exposure to loss represents the recorded investment based on the Company’s beneficial interests held in the securitized assets. These interests are not expected to absorb losses or receive benefits that are significant to the VIE. As a limited partner, the nature of the Company’s ownership interest in tax credit equity investments is limited in its ability to direct the activities that drive the economic performance of the entity, as these entities are managed by the general or managing partner. As a result, the Company was not deemed to be the primary beneficiary of these 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 at the same time assuming no consideration of 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 (dollars in millions) Unconsolidated VIEs Carrying Value Unconsolidated VIEs Carrying Value September 30, 2016 December 31, 2015 Partnership Partnership Securities Investment Securities Investment Agency securities(1) $ 964.6 $ – $ 294.5 $ – Non agency securities—Other servicer 811.6 – 906.8 – Tax credit equity investments – 115.6 – 125.0 Total Assets $ 1,776.2 $ 115.6 $ 1,201.3 $ 125.0 Commitments to tax credit investments $ – $ 7.3 $ – $ 15.7 Total Liabilities $ – $ 7.3 $ – $ 15.7 Maximum loss exposure(2) $ 1,776.2 $ 115.6 $ 1,201.3 $ 125.0 (1) In preparing the interim financial statements for the quarter ended September 30, 2016, the Company discovered and corrected an immaterial error impacting the disclosure of agency securities in the amount of $147.0 million as of December 31, 2015 (2) 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 | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | NOTE 9 — DERIVATIVE FINANCIAL INSTRUMENTS As part of managing economic risk and exposure to interest rate and foreign currency risk, the Company primarily enters into derivative transactions in over-the-counter markets with other financial institutions. The Company does not enter into derivative financial instruments for speculative purposes. The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “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 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. See Note 1 — Business and Summary of Significant Accounting Policies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 for further description of its 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) September 30, 2016 December 31, 2015 Notional Asset Liability Notional Asset Liability Qualifying Hedges Amount Fair Value Fair Value Amount Fair Value Fair Value Foreign currency forward contracts – net investment hedges $ 775.2 $ 8.8 $ (2.1) $ 787.6 $ 45.5 $ (0.3) Total Qualifying Hedges 775.2 8.8 (2.1) 787.6 45.5 (0.3) Non-Qualifying Hedges Interest rate swaps (2) 5,064.8 104.2 (98.8) 4,645.7 45.1 (38.9) Written options 2,663.0 0.2 (0.2) 3,346.1 0.1 (2.5) Purchased options 2,049.1 0.2 (0.2) 2,342.5 2.2 (0.1) Foreign currency forward contracts 1,291.1 11.0 (5.7) 1,624.2 47.8 (6.6) Total Return Swap (TRS) 1,200.0 – (47.8) 1,152.8 – (54.9) Equity Warrants 1.0 0.1 – 1.0 0.3 – Interest Rate Lock Commitments 41.6 0.4 – 9.9 0.1 – Forward Sale Commitments on Agency MBS 24.0 – (0.1) – – – Credit derivatives 261.3 – (0.5) 37.6 – (0.3) Total Non-qualifying Hedges 12,595.9 116.1 (153.3) 13,159.8 95.6 (103.3) Total Hedges $ 13,371.1 $ 124.9 $ (155.4) $ 13,947.4 $ 141.1 $ (103.6) (1) Presented on a gross basis . (2) Fair value balances include accrued interest. Total Return Swaps Two financing facilities between two wholly-owned subsidiaries of CIT and Goldman Sachs International (“GSI”) are structured as total return swaps ( together, the “TRS”), under which amounts available for advances are accounted for as derivatives. Pursuant to applicable accounting guidance, the unutilized portion of the TRS is accounted for as a derivative and recorded at its estimated fair value. The CIT Financial Ltd. Facility (the “CFL Facility”) is $1.5 b illion and the CIT TRS Funding B.V. facility ( the “BV facility”) is $625 million. The aggregate notional amounts of the TRS of $1,200.0 million at September 30, 2016 and $1,152.8 million at December 31, 2015 represent the aggregate unused portions under the TRS and constitute derivative financial instruments. These aggregate notional amounts are calculated as the maximum aggregate facility commitment amounts, currently $2,125.0 million, less the aggregate actual adjusted qualifying borrowing base outstanding of $925.0 million at September 30, 2016 and $972.2 million at December 31, 2015 under the TRS . The notional amounts of the derivatives will increase as the adjusted qualifying borrowing base decreases due to repayment of the under lying asset-backed securities (ABS ) to investors. If CIT funds additional ABS under the CFL Facility and/or BV Facility , the aggregate adjusted qualifying borrowing base of the TRS will increase and the notional amount of the derivatives will decrease accordingly. The TRS allows for termination by CIT upon not less than 10 business days notification to Goldman Sachs International (“GSI”), as counterparty under the TRS. Such termination requires payment to GSI of the present value of the remaining facility fee that would be due under the terms of the agreement. Valuation of the derivatives related to the TRS facilities is based on several factors using a discounted cash flow (“DCF”) methodology, including: CIT’s funding costs for similar financings based on current market conditions; Forecasted usage of the long-dated facilities through the final maturity date in 2028; and Forecasted amortization, due to principal payments on the underlying ABS, which impacts the amount of the unutilized portion. Based on the Company’s valuation, a liability of $47.8 million and $54.9 million was recorded at September 30, 2016 and December 31, 2015 , respectively. The increase in liability of $19.7 million and decrease of $7.1 million were recognized as a decrease and an increase to Other Income for the quarter and nine months ended September 30, 2016, respectively. The increases in the liability of $24.3 million and $31.7 million were recognized as a reduction to Other Income for the quarter and nine months ended September 30, 2015, respectively. 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. D erivative transactions are documented under an International Swaps and Derivatives Association (“ISDA”) agreement. Offsetting of Derivative Assets and Liabilities (dollars in millions) 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 (1) Cash Collateral Pledged/ (Received) (1)(2) Net Amount September 30, 2016 Derivative assets $ 124.9 $ – $ 124.9 $ (6.3) $ (11.9) $ 106.7 Derivative liabilities (155.4) – (155.4) 6.3 93.3 (55.8) December 31, 2015 Derivative assets $ 141.1 $ – $ 141.1 $ (9.7) $ (82.7) $ 48.7 Derivative liabilities (103.6) – (103.6) 9.7 31.8 (62.1) (1) 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 . (2) Collateral pledged or received is included in Other assets or Other liabilities, respectively. Derivative Instrument Gains and Losses (dollars in millions) Quarters Ended September 30, Nine Months Ended September 30, Derivative Instruments Gain / (Loss) Recognized 2016 2015 2016 2015 Non Qualifying Hedges Interest rate swaps Other income $ 2.4 $ (2.2) $ (0.6) $ (1.1) Interest rate options Other income 0.1 1.2 0.5 1.1 Foreign currency forward contracts Other income 1.4 43.8 (10.9) 84.5 Equity warrants Other income 0.1 – (0.2) 0.1 Total Return Swap (TRS) Other income (19.7) (24.3) 7.1 (31.7) Interest Rate Lock Commitments Other income 0.2 – 0.3 – Forward Sale Commitments on Agency MBS Other income (0.1) – (0.1) – Credit Derivatives Other income 0.2 – 1.4 – Total Non-qualifying Hedges $ (15.4) $ 18.5 $ (2.5) $ 52.9 Total derivatives-income statement impact $ (15.4) $ 18.5 $ (2.5) $ 52.9 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 Hedge ineffectiveness recorded directly in income Total income statement impact Derivatives - effective portion recorded in OCI Total change in OCI for period Quarter Ended September 30, 2016 Foreign currency forward contracts - net investment hedges $ – $ $ – $ 4.2 $ 4.2 Total $ – $ – $ – $ 4.2 $ 4.2 Quarter Ended September 30, 2015 Foreign currency forward contracts - net investment hedges $ 4.3 $ – $ 4.3 $ 44.0 $ 39.7 Total $ 4.3 $ – $ 4.3 $ 44.0 $ 39.7 Nine Months Ended September 30, 2016 Foreign currency forward contracts - net investment hedges 1.8 $ – $ 1.8 $ (28.1) $ (29.9) Total $ 1.8 $ – $ 1.8 $ (28.1) $ (29.9) Nine Months Ended September 30, 2015 Foreign currency forward contracts - net investment hedges 8.5 – 8.5 106.3 97.8 Total $ 8.5 $ – $ 8.5 $ 106.3 $ 97.8 |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value [Abstract] | |
Fair Value | NOTE 1 0 — 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 a description of 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, including those management elected under the fair value option. September 30, 2016 Total Level 1 Level 2 Level 3 Assets Debt Securities AFS $ 2,729.2 $ – $ 2,218.8 $ 510.4 Securities carried at fair value with changes recorded in net income 301.3 – – 301.3 Equity Securities AFS 34.8 0.2 34.6 – FDIC receivable 49.3 – – 49.3 Derivative assets at fair value -non-qualifying hedges (1) 116.1 – 115.7 0.4 Derivative assets at fair value - qualifying hedges 8.8 – 8.8 – Total $ 3,239.5 $ 0.2 $ 2,377.9 $ 861.4 Liabilities Derivative liabilities at fair value - non-qualifying hedges (1) $ (153.3) $ – $ (105.0) $ (48.3) Derivative liabilities at fair value - qualifying hedges (2.1) – (2.1) – Consideration holdback liability (47.0) – – (47.0) FDIC True-up Liability (61.3) – – (61.3) Total $ (263.7) $ – $ (107.1) $ (156.6) December 31, 2015 Assets Debt Securities AFS $ 2,007.8 $ – $ 1,440.7 $ 567.1 Securities carried at fair value with changes recorded in net income 339.7 – – 339.7 Equity Securities AFS (2) 14.3 0.3 14.0 – FDIC receivable 54.8 – – 54.8 Derivative assets at fair value -non-qualifying hedges (1) 95.6 – 95.6 – Derivative assets at fair value - qualifying hedges 45.5 – 45.5 – Total $ 2,557.7 $ 0.3 $ 1,595.8 $ 961.6 Liabilities Derivative liabilities at fair value - non-qualifying hedges (1) $ (103.3) $ – $ (47.8) $ (55.5) Derivative liabilities at fair value - qualifying hedges (0.3) – (0.3) – Consideration holdback liability (60.8) – – (60.8) FDIC True-up Liability (56.9) – – (56.9) Total $ (221.3) $ – $ (48.1) $ (173.2) (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, L evel 2 or Level 3 inputs. Debt securities classified as AFS included investments in U.S. federal government agency , U.S. Treasury and supranational securities and were valued using Level 2 inputs, primarily quoted prices for similar securities. 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. FDIC Receivable —The Company elected to measure its receivable under a participation agreement with the FDIC in connection with the IndyMac Transaction at estimated fair value under the fair value option. The participation agreement provides the Company a secured interest in certain homebuilder, home construction and lot loans, which entitle the Company to a 40% share of the underlying loan cash flows. The receivable is valued by first grouping the loans into similar asset types and stratifying the loans based on their underlying key features such as product type, current payment status and other economic attributes in order to project future cash flows. The modeled underlying cash flows include estimated amounts expected to be collected from repayment of loan principal and interest and net proceeds from property liquidations through the clean up call date (when the portfolio falls below 10% of the original unpaid principal balance or June 2016) controlled by the FDIC whereby the underlying assets shall be sold six months from the earliest call date (September 2016), which was exercised by the FDIC during the second quarter of 2016. Projected future cash flows are estimated by taking the Company’s share (40%) of the future cash flows from the underlying loans and real estate properties that include proceeds and interest offset by servicing expenses and servicing fees. Estimated fair value of the FDIC receivable is based on a discounted cash flow technique using significant unobservable inputs, including prepayment rates, default rates, loss severities and liquidation assumptions. To determine the estimated fair value, the cash flows are discounted using a market interest rate that represents an overall weighted average discount rate based on the underlying collateral specific discount rates. Due to the reduced liquidity that exists for such loans and lack of observable market data available, this requires the use of significant unobservable inputs; as a result these measurements are classified as Level 3. Derivative Assets and Liabilities —The Company’s financial derivatives include interest rate swaps, floors, caps, forwards , forward sale commitments on Agency MBS and credit derivatives. 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 — In connection with the La Jolla Transaction, the Company recognized a FDIC True-up liability due to the FDIC 45 days after the tenth anniversary of the loss shar e agreement (the maturity) because the actual and estimated cumulative losses on the acquired covered PCI loans are lower than the cumulative losses originally estimated by the FDIC at the time of acquisition. The FDIC True-up liability was recorded at estimated fair value as of the Acquisition D ate 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 shar e 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 ed 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 mil lion, and currently is $47.0 million. The amount expected to be paid was discounted based on CIT’s cost of funds. This contingent consideration was measured at fair value at the Acquisition D ate 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 aver age 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 September 30, 2016 . Quantitative Information about Level 3 Fair Value Measurements—Recurring (dollars in millions) Financial Instrument Estimated Fair Value Valuation Technique(s) Significant Unobservable Inputs Range of Inputs Weighted Average September 30, 2016 Assets Securities—AFS $ 510.4 Discounted cash flow Discount Rate 2.7% - 81.4% 5.3% Prepayment Rate 1.7% - 20.6% 9.1% Default Rate 0.0% - 12.8% 4.1% Loss Severity 0.2% - 75.2% 36.1% Securities carried at fair value with changes recorded in net income 301.3 Discounted cash flow Discount Rate 0.0% - 37.8% 5.4% Prepayment Rate 5.4% - 35.8% 11.9% Default Rate 0.0% - 6.3% 4.0% Loss Severity 7.3% - 42.9% 24.7% FDIC Receivable 49.3 Discounted cash flow Discount Rate 7.8% - 18.4% 9.4% Prepayment Rate 2.0% - 14.0% 3.2% Default Rate 6.0% - 36.0% 10.5% Loss Severity 21.6% - 53.2% 29.2% Derivative assets - non qualifying 0.4 Internal valuation model Borrower Rate 2.9% - 4.5% 3.6% Total Assets $ 861.4 Liabilities FDIC True-up liability $ (61.3) Discounted cash flow Discount Rate 3.2 % - 3.2% 3.2% Consideration holdback liability (47.0) Discounted cash flow Payment Probability 0.0% - 100.0% 53.8% Discount Rate 1.3% - 4.0% 2.2% Derivative liabilities - non qualifying (48.3) Market Comparables (1) Total Liabilities $ (156.6) Financial Instrument Estimated Fair Value Valuation Technique(s) Significant Unobservable Inputs Range of Inputs Weighted Average December 31, 2015 Assets Securities—AFS $ 567.1 Discounted cash flow Discount Rate 0.0% - 94.5% 6.4% Prepayment Rate 2.7% - 20.8% 9.2% Default Rate 0.0% - 9.5% 4.1% Loss Severity 0.2% - 83.5% 36.4% Securities carried at fair value with changes recorded in net income 339.7 Discounted cash flow Discount Rate 0.0% - 19.9% 6.3% Prepayment Rate 2.5% - 22.4% 11.5% Default Rate 0.0% - 5.9% 4.1% Loss Severity 3.8% - 39.0% 25.1% FDIC Receivable 54.8 Discounted cash flow Discount Rate 7.8% - 18.4% 9.4% Prepayment Rate 2.0% - 14.0% 3.6% Default Rate 6.0% - 36.0% 10.8% Loss Severity 20.0% - 65.0% 31.6% Total Assets $ 961.6 Liabilities FDIC True-up liability $ (56.9) Discounted cash flow Discount Rate 4.1 % - 4.1% 4.1% Consideration holdback liability (60.8) Discounted cash flow Payment Probability 0% - 100% 53.8% Discount Rate 3.0% - 3.0% 3.0% Derivative liabilities - non qualifying (55.5) Market Comparables (1) Total Liabilities $ (173.2) (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 technique s 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. Generally, 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 assets - non qualifying (1) Derivative liabilities - non-qualifying (2) FDIC True-up Liability Consideration holdback Liability December 31, 2015 $ 567.1 $ 339.7 $ 54.8 $ – $ (55.5) $ (56.9) $ (60.8) Included in earnings (4.6) 11.6 4.8 0.4 7.2 (4.4) (0.5) Included in comprehensive income 22.1 – – – – – – Impairment (2.2) – – – – – – Settlements (72.0) (50.0) (10.3) – – – 14.3 Balance as of September 30, 2016 $ 510.4 $ 301.3 $ 49.3 $ 0.4 $ (48.3) $ (61.3) $ (47.0) December 31, 2014 $ – $ – $ – $ – $ (26.6) $ – $ – Included in earnings (0.2) – 0.7 – (30.5) – – Included in comprehensive income (10.9) – – – – – – Purchases 992.8 – 54.8 – – (56.3) (60.8) Settlements (29.2) – (1.3) – – – – Balance as of September 30, 2015 $ 952.5 $ – $ 54.2 $ – $ (57.1) $ (56.3) $ (60.8) (1) Valuation of Interest Rate Lock Commitments. (2) Primarily includes the valuation of the derivatives related to the TRS facilities 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 quarter s ended September 30, 2016 and 201 5 , 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 Level at Reporting Date Total Carrying Value Level 1 Level 2 Level 3 Total (Losses) Assets September 30, 2016 Assets held for sale $ 1,598.0 $ – $ 3.7 $ 1,594.3 $ (41.2) Other real estate owned and repossessed assets 88.7 – – 88.7 (5.8) Impaired loans 125.6 – – 125.6 (20.0) Total $ 1,812.3 $ – $ 3.7 $ 1,808.6 $ (67.0) December 31, 2015 Assets held for sale $ 1,648.3 $ – $ 31.0 $ 1,617.3 $ (32.0) Other real estate owned and repossessed assets 127.3 – – 127.3 (5.7) Impaired loans 127.6 – – 127.6 (21.9) Total $ 1,903.2 $ – $ 31.0 $ 1,872.2 $ (59.6) 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 . Loans are transferred from held for investment to AHFS 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, if applicable. Once classified as AHFS, the amount by which the carrying value exceeds fair value is recorded as a valuati on allowance. If there is no liquid secondary market for the operating lease and 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. Certain of the loans held for sale were valued utilizing Level 2 inputs. In those instances where third party valuations were utilized, the most significant assumptions were the discount rates which ranged from 5.0% to 12.2% . The estimated fair value of asset s held for sale with impairment was $1,598.0 million at September 30, 2016 and $1,652.5 million at December 31, 2015. Other Real Estate Owned — Other real estate owned represents collateral acquired from the foreclosure of secured real estate loans. Other real estate owned is measured at LOCOM less disposition costs. 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 is generally based upon 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 significant unobservable input is the appraised value or the sales price and thus is classified as Level 3. As of the reporting date, OREO carry ing value approximates fair value. Impaired Loans — Impaired finance receivables of $500,000 or greater that are placed on non-accrual status are subject to periodic individual review in conjunction with the Company’s ongoing problem loan management (PLM) function. 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 finance receivable, with the estimated value determined using fair value of collateral and other cash flows if the finance r eceivable is collateralized, the present value of expected future cash flows discounted at the co ntract’s effective interest rate, or observable market prices. The significant unobservable inputs result in the Level 3 classification. As of the reporting date, the carry ing value of impaired loans approximates fair value. Fair Value Option The Company has made an irrevocable option to elect fair value for the initial and subsequent measurement of the FDIC receivable acquired by OneWest Bank in the IndyMac Transaction, as it was determined at the time of election that this treatment would allow a better economic offset of the changes in estimated fair values of the loans. The following table summarizes the differences between the carrying value of the FDIC Receivable based upon the Bank’s contractual right to 40% of the cash flows of the underlying collateral measured at estimated fair value under the fair value option and the aggregate unpaid principal amount of the underlying collateral . FDIC Receivable (dollars in millions) September 30, 2016 Estimated Fair Value Carrying Amount Aggregate Unpaid Principal Difference Between Estimated Fair Value and Aggregate Unpaid Principal Balance FDIC Receivable $ 49.3 $ 178.8 $ 129.4 December 31, 2015 Estimated Fair Value Carrying Amount Aggregate Unpaid Principal Difference Between Estimated Fair Value and Aggregate Unpaid Principal Balance FDIC Receivable $ 54.8 $ 204.5 $ 149.7 The gains and losses due to changes in the estimated fair value of the FDIC receivable under the fair value option are included in earnings for the quarter ended September 30, 2016 and shown in the Financial Assets and Liabilities Measured at Estimated Fair Value on a Recurring Basis section of this Note. 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 September 30, 2016 Value Level 1 Level 2 Level 3 Total Financial Assets Cash and interest bearing deposits $ 7,433.6 $ 7,433.6 $ $ – $ 7,433.6 Derivative assets at fair value - non-qualifying hedges 116.1 – 115.7 0.4 116.1 Derivative assets at fair value - qualifying hedges 8.8 – 8.8 – 8.8 Assets held for sale (excluding leases) 1,125.3 – 164.5 968.4 1,132.9 Loans (excluding leases) 27,084.5 – 430.0 26,431.0 26,861.0 Investment securities (1) 3,592.4 0.2 2,446.6 1,152.5 3,599.3 Indemnification assets (2) 259.7 – – 215.8 215.8 Other assets subject to fair value disclosure and unsecured counterparty receivables ( 3) 1,094.9 – – 1,094.9 1,094.9 Financial Liabilities Deposits (4) (32,883.7) – – (33,145.8) (33,145.8) Derivative liabilities at fair value - non-qualifying hedges (153.3) – (105.0) (48.3) (153.3) Derivative liabilities at fair value - qualifying hedges (2.1) – (2.1) – (2.1) Borrowings (4) (16,667.8) – (15,214.2) (2,069.0) (17,283.2) Credit balances of factoring clients (1,228.9) – – (1,228.9) (1,228.9) Other liabilities subject to fair value disclosure (5) (1,973.2) – – (1,973.2) (1,973.2) December 31, 2015 Financial Assets Cash and interest bearing deposits $ 8,301.5 $ 8,301.5 $ – $ – $ 8,301.5 Derivative assets at fair value - non-qualifying hedges 95.6 – 95.6 – 95.6 Derivative assets at fair value - qualifying hedges 45.5 – 45.5 – 45.5 Assets held for sale (excluding leases) 738.8 21.8 55.8 669.1 746.7 Loans (excluding leases) 28,244.2 – 975.5 26,509.1 27,484.6 Investment securities (1) 2,953.8 11.5 1,678.7 1,265.0 2,955.2 Indemnification assets (2) 348.4 – – 323.2 323.2 Other assets subject to fair value disclosure and unsecured counterparty receivables ( 3) 1,004.5 – – 1,004.5 1,004.5 Financial Liabilities Deposits (4) (32,813.8) – – (32,972.2) (32,972.2) Derivative liabilities at fair value - non-qualifying hedges (103.3) – (47.8) (55.5) (103.3) Derivative counterparty liabilities at fair value (0.3) – (0.3) – (0.3) Borrowings (4) (18,717.1) – (16,358.2) (2,808.8) (19,167.0) Credit balances of factoring clients (1,344.0) – – (1,344.0) (1,344.0) Other liabilities subject to fair value disclosure (5) (1,943.5) – – (1,943.5) (1,943.5) (1) Level 3 estimated fair value at September 30, 2016, includes debt securities AFS ( $510.4 million), securities carried at fair value with changes recorded in net income ( $301.3 million), non-marketable investments ( $272.7 million), and debt securities HTM ( $68.1 million). Level 3 estimated fair value at December 31, 2015 included debt securities AFS ( $567.1 million), debt securities carried at fair value with changes recorded in net income ( $339.7 million), non-marketable investments ( $291.9 million), and debt securities HTM ( $66.3 million). (2) The indemnification assets at September 30, 2016, included in the above table does not include Agency claims indemnification ( $102.5 million), as they are not considered financial instruments. The indemnification assets at December 31, 2015 included in the above table does not include Agency claims indemnification ( $65.6 million) and Loan indemnification ( $0.7 million ) , 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 —The carrying values of cash and cash equivalents are at face amount. The impact of the time value of money from the unobservable discount rate for restricted cash is inconsequential as of September 30, 2016 and December 31, 2015 . Accordingly 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 9 — 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 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. 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 value |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | NOTE 1 1 — STOCKHOLDERS’ EQUITY 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) September 30, 2016 December 31, 2015 Gross Unrealized Income Taxes Net Unrealized Gross Unrealized Income Taxes Net Unrealized Foreign currency translation adjustments $ (26.8) $ (22.6) $ (49.4) $ (29.8) $ (35.9) $ (65.7) Changes in benefit plan net gain (loss) and prior service (cost)/credit (75.0) 7.0 (68.0) (76.3) 7.0 (69.3) Unrealized net gains (losses) on available for sale securities 21.3 (8.1) 13.2 (11.4) 4.3 (7.1) Total accumulated other comprehensive loss $ (80.5) $ (23.7) $ (104.2) $ (117.5) $ (24.6) $ (142.1) 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, 2015 $ (65.7) $ (69.3) $ (7.1) $ (142.1) AOCI activity before reclassifications 11.6 (0.2) 20.3 31.7 Amounts reclassified from AOCI 4.7 1.5 – 6.2 Net current period AOCI 16.3 1.3 20.3 37.9 Balance as of September 30, 2016 $ (49.4) $ (68.0) $ 13.2 $ (104.2) Balance as of December 31, 2014 $ (75.4) $ (58.5) $ – $ (133.9) AOCI activity before reclassifications (55.6) (1.7) (5.9) (63.2) Amounts reclassified from AOCI 22.2 0.6 – 22.8 Net current period AOCI (33.4) (1.1) (5.9) (40.4) Balance as of September 30, 2015 $ (108.8) $ (59.6) $ (5.9) $ (174.3) Other Comprehensive Income/(Loss) The amounts included in the Statement of Comprehensive Income are net of income taxes. Foreign currency translation reclassification adjustments impacting net income w as insignificant for the quarter ended September 30, 2016 and was $18.8 million for the prior year quarter ended September 30, 2015 and were $4.7 million and $22.2 million for the nine months ended September 30, 2016 and 2015, respectively. The change in income taxes associated with foreign currency translation adjustments was $(1.4) million and $(20.4) million for the quarters ended September 30, 2016 and 2015, respectively and was $13.3 million and $(33.5) million for the nine months ended September 30, 2016 and September 30, 2015, respectively . The changes in benefit plans net gain/(loss) and prior service (cost)/credit reclassification adjustments impacting net income was $0.1 million and $0.5 million for the quarters ended September 30, 2016 and 2015, respectively; and was $1.5 million and $0.6 million for the nine months ended September 30, 2016 and 2015, respectively. The change in income taxes associated with changes in benefit plans net gain/(loss) and prior service (cost)/credit was insignificant and $(0.3) million for the quarter s ended September 30, 2016 and 2015 and was insignificant for the year to date periods ended September 30, 2016 and 20 15 , respectively . There were no reclassification adjustments impacting net income for unrealized gains (losses) on available for sale securities for the quarters or year to date periods ended September 30, 2016 and 2015. The change in income taxes associated with net unrealized gains on available for sale securities was $(3.3) million an d approximately $4.0 million for the quarters ended September 30, 2016 and 2015, respectively and was $(12.4) million and $3.8 million for the nine months ended September 30, 2016 and 2015, respectively . The Company has operations in Canada and other countries. 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 Income. Reclassifications Out of Accumulated Other Comprehensive Income (dollars in millions) Quarters Ended September 30, 2016 2015 Income Gross Amount Tax Net Amount Gross Amount Tax Net Amount Statement line item Foreign currency translation adjustments gains (losses) $ – $ – $ – $ 19.2 $ (0.4) $ 18.8 Other Income Changes in benefit plan net gain/(loss) and prior service (cost)/credit gains (losses) 0.1 – 0.1 0.7 (0.2) 0.5 Operating Expenses Total Reclassifications out of AOCI $ 0.1 $ – $ 0.1 $ 19.9 $ (0.6) $ 19.3 Nine Months Ended September 30, 2016 2015 Income Gross Amount Tax Net Amount Gross Amount Tax Net Amount Statement line item Foreign currency translation adjustments gains (losses) $ 3.6 $ 1.1 $ 4.7 $ 22.6 $ (0.4) $ 22.2 Other Income Changes in benefit plan net gain/(loss) and prior service (cost)/credit gains (losses) 1.7 (0.2) 1.5 0.9 (0.3) 0.6 Operating Expenses Total Reclassifications out of AOCI $ 5.3 $ 0.9 $ 6.2 $ 23.5 $ (0.7) $ 22.8 |
Regulatory Capital
Regulatory Capital | 9 Months Ended |
Sep. 30, 2016 | |
Regulatory Capital [Abstract] | |
Regulatory Capital | NOTE 1 2 — 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 September 30, 2016 and December 31, 2015 , the regulatory capital guidelines applicable to the Company and the Bank were based on the Basel III Final Rule. The calculation of the Company’s regulatory capital ratios are subject to review and consultation with the FRB, which may result in refinements to amounts reported at September 30, 2016 . The following table summarizes the actual and minimum required capital ratios: Tier 1 Capital and Total Capital Components (dollars in millions) CIT CIT Bank, N.A. September 30, December 31, September 30, December 31, Tier 1 Capital 2016 2015 2016 2015 Total stockholders’ equity (1) $ 11,237.0 $ 10,978.1 $ 5,535.1 $ 5,606.4 Effect of certain items in accumulated other comprehensive loss excluded from Tier 1 Capital and qualifying noncontrolling interests 55.3 76.9 (13.3) 7.0 Adjusted total equity 11,292.3 11,055.0 5,521.8 5,613.4 Less: Goodwill (2) (1,099.8) (1,130.8) (810.3) (830.8) Disallowed deferred tax assets (804.4) (904.5) – – Disallowed intangible assets (2) (71.3) (53.6) (83.1) (58.3) Other Tier 1 components (3) (5.8) (0.1) – – Common Equity Tier 1 Capital 9,311.0 8,966.0 4,628.4 4,724.3 Tier 1 Capital 9,311.0 8,966.0 4,628.4 4,724.3 Tier 2 Capital Qualifying allowance for credit losses and other reserves (4) 469.3 403.3 439.5 374.7 Other Tier 2 components (5) – – 0.1 – Total qualifying capital $ 9,780.3 $ 9,369.3 $ 5,068.0 $ 5,099.0 Risk-weighted assets $ 66,802.2 $ 69,563.6 $ 35,239.4 $ 36,809.5 Common Equity Tier 1 Capital (to risk-weighted assets): Actual 13.9% 12.9% 13.1% 12.8% Effective minimum ratios under Basel III guidelines (6) 5.125% 4.5% 5.125% 4.5% Tier 1 Capital (to risk-weighted assets): Actual 13.9% 12.9% 13.1% 12.8% Effective minimum ratios under Basel III guidelines (6) 6.625% 6.0% 6.625% 6.0% Total Capital (to risk-weighted assets): Actual 14.6% 13.5% 14.4% 13.9% Effective minimum ratios under Basel III guidelines (6) 8.625% 8.0% 8.625% 8.0% Tier 1 Leverage Ratio: Actual 14.4% 13.5% 10.9% 10.9% Required minimum ratio for capital adequacy purposes 4.0% 4.0% 4.0% 4.0% (1) See Consolidated Balance Sheets for the components of Total stockholders’ equity. (2) Goodwill and disallowed intangible assets adjustments also reflect the portion included within assets held for sale. (3) September 30th, 2016 amount represents the Volcker Rule requirement of deducting covered funds from equity. This requirement was first implemented in the second quarter of 2016. December 31, 2015 amount includes the Tier 1 capital charge for nonfinancial equity instruments under Basel I. (4) “Other reserves” represents additional credit loss reserves for unfunded lending commitments, letters of credit, and deferred purchase agreements, all of which are recorded in Other Liabilities. (5) Banking organizations are permitted to include in Tier 2 Capital up to 45% of net unrealized pretax gains on available-for-sale equity securities with readily determinable fair values. (6) Required ratios under Basel III Final Rule in effect as of the reporting date. The Basel III Final Rule: (i) introduce d a new capital measure called “Common Equity Tier 1” (“CET1”) and related regulatory capital ratio of CET1 to risk-weighted assets; (ii) specifie d that Tier 1 capital consists of CET1 and “Additional Tier 1 capital” instruments meeting certain revised requirements; (iii) mandate d that most deductions/adjustments to regulatory capital measures be made to CET1 and not to the other components of capital; and (iv) expand ed the scope of the deductions from and adjustments to capital as compared to the prior regulations. The Basel III Final Rule also prescribed new approaches for risk weightings. Of these, CIT will calculate risk weightings using the Standardized Approach. This approach expands the risk-weighting categories from the former four Basel I-derived categories ( 0% , 20% , 50% and 100% ) to a larger and more risk-sensitive number of categories, depending on the nature of the exposure, ranging from 0% for U.S. government and agency securities to as high as 1,250% for such exposures as mortgage backed securities, credit-enhancing interest-only strips or unsettled security/commodity transactions. The Basel III Final Rule established new minimum capital ratios for CET1, Tier 1 capital, and Total capital of 4.5% , 6.0% and 8.0% , respectively. In addition, the Basel III Final Rule also introduced a new “capital conservation buffer”, composed entirely of CET1, on top of these minimum risk-weighted asset ratios. The capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of CET1 to risk-weighted assets above the minimum but below the capital conservation buffer will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall. This buffer w as implemented beginning January 1, 2016 at the 0.625% level and increase by 0.625% on each subsequent January 1, until it reaches 2.5% on January 1, 2019. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 13 – INCOME TAXES The Company’s global effective income tax rate from continuing operations for the third quarter and the nine months ended September 30, 2016 before discrete items was 27% and 31% , respectively, compared to 24% in the year-ago quarter and 27% in the year-ago nine months period. The increase in the global effective tax rate is primarily driven by the impact of higher domestic earnings, which shifted the geographic mix of earnings. The tax provision for the third quarter and the nine months ended September 30, 2016 reflected federal and state income taxes in the U.S. as well as taxes on earnings of certain international operations. Included in the net discrete tax expense of $ 16 mil lion and $8 million for the current quarter and year to date was: · $1 6 million tax expense recorded this quarter related to the establishment of valuation allowances against certain international net deferred tax assets due to the exit of our international non-strategic portfolios, · $14 million tax benefit, including interest and penalties, recorded in the first quarter resulting from favorable actions taken by the tax authorities related to uncertain tax positions taken on certain prio r year non-U.S. tax returns, and · Miscellaneous other $6 million of net tax expense items year to date . Included in the 2015 discrete tax benefit of $593 million and $598 million for the quarter and year to date was: · $647 million tax benefit recorded in the third quarter corresponding to a reduction to the U.S. federal deferred tax asset valuation allowance after considering the impact on earnings of the OneWest acquisition to support the Company’s ability to utilize the U.S. federal net operating losses, · $29 million tax expense including interest and penalties recorded in the third quarter related to an uncertain tax position taken on certain prior year international tax returns, · $28 million tax expense recorded in the third quarter related to establishment of domestic and international deferred tax liabilities as a result of Management’s decision to no longer assert its intent to indefinitely reinvest its unremitted earnings in China, and · $9 million tax benefit recorded in the prior quarter corresponding to a reduction of certain tax reserves upon the receipt of a favorable tax ruling on an uncertain tax position taken on prior years’ tax returns. The quarterly income tax expense is based on an updated projection of the Company’s annual effective tax rate. This updated annual effective tax rate is applied to the year-to-date consolidated pre-tax income to determine the interim provision for income taxes before discrete items. The impact of any change in the projected annual effective tax rate from the prior quarter is reflected in the quarterly income tax expense. The change in the effective tax rate each period is impacted by a number of factors, including the relative mix of domestic and international earnings, adjustments to the valuation allowances, and discrete items. The actual year-end 2016 effective tax rate may vary from the currently projected tax rate due to changes in these factors. The Company maintained a valuation allowance of $37 million against certain non-U.S. reporting entities’ net DTAs at September 30, 2016, down from $91 million at December 31, 2015. In January 2016, the Company sold its U.K. equipment finance business. Thus, there was a reduction of approximately $70 million to the respective U.K. reporting entities’ net DTAs along with their associated valuation allowances. During the third quarter, the Company established $16 million valuation allowance on the Chin a reporting entities’ net DTAs. 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. While GAAP equity increased as a result of the recognition of net DTAs corresponding to the release of the aforementioned valuation allowances, there was minimal benefit on regulatory capital. Liabilities for Uncertain Tax Positions The Company’s potential liability for uncertain tax positions before interest and penalties totaled $38.0 million at September 30, 2016 and $46.7 million at December 31, 2015. The decrease in the balance is mainly associated with favorable tax actions taken by the tax authorities related to uncertain tax positions taken on certain prior year non-U.S. income tax returns. The Company anticipates changes to its uncertain tax positions from the resolution of open tax matters and closure of statutes. Management estimates that the total potential liability before interest and penalties may be reduced by up to $5 million within the next twelve months. If these amounts are resolved in favor of the Company, they will have a favorable impact on the effective tax rate in future periods. The Company’s accrued liability for interest and penalties totaled $11.9 million at September 30, 2016 and $18.0 million at December 31, 2015. The change in balance is mainly related to the interest and penalties associated with the decrease in the above mentioned uncertain tax position taken on certain year-ago non-U.S. income tax returns. The Company recognizes accrued interest and penalties on unrecognized tax benefits in income tax expense. |
Commitments
Commitments | 9 Months Ended |
Sep. 30, 2016 | |
Commitments [Abstract] | |
Commitments | NOTE 14 — COMMITMENTS The accompanying table summarizes credit-related commitments , as well as purchase and funding commitments: Commitments (dollars in millions) September 30, 2016 December 31, Due to Expire 2015 Within After Total Total One Year One Year Outstanding Outstanding Financing Commitments Financing assets $ 1,417.1 $ 5,326.1 $ 6,743.2 $ 7,385.6 Letters of credit Standby letters of credit 31.9 197.9 229.8 315.3 Other letters of credit 11.5 - 11.5 18.3 Guarantees Deferred purchase agreements 2,076.5 - 2,076.5 1,806.5 Guarantees, acceptances and other recourse obligations 2.4 - 2.4 0.7 Purchase and Funding Commitments Aerospace purchase commitments 591.2 8,346.1 8,937.3 9,618.1 Rail and other purchase commitments 395.9 27.8 423.7 898.2 Financing Commitments Commercial Financing commitments, referred to as loan commitments or lines of credit, 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 $1.1 billion at September 30, 2016 and $859 million at December 31, 2015. Financing commitments also include credit line agreements to Commercial Services 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 $425 million at September 30, 2016 and $406 million at December 31, 2015. As financing commitments may not be fully drawn, may expire unused, may be reduced or cancelled 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 of undrawn financing commitments at September 30, 2016 and $1.7 billion at December 31, 2015 for instances where the customer is not in compliance with contractual obligations, and therefore CIT does not have the contractual obligation to lend. At September 30, 2016 , 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 Commercial Services to its clients for working capital purposes. In connection with these facilities, Commercial Services 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 Financing commitments in the table above include $44 million associated with discontinued operations at September 30, 2016 consisting of HECM reverse mortgage loan commitments. In conjunction with the OneWest Transaction, 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. The Company’s net exposure for loan commitments on the reverse mortgage draws on those purchased loans was $54 million at September 30, 2016. See Note 5 – Indemnification Assets for further discussion on loss sharing agreements with the FDIC. 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. 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 $1,984 million and $1,720 million of DPA credit protection at September 30, 2016 and December 31, 2015, 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 $92 million and $87 million available under DPA credit line agreements, net of the amount of DPA credit protection provided at September 30, 2016 and December 31, 2015, 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 receivables, 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 $5.7 million and $4.4 million at September 30, 2016 and December 31, 2015 , respectively. Purchase and Funding Commitments CIT’s purchase commitments relate primarily to purchases of commercial aircraft and rail equipment. Commitments to purchase new commercial aircraft are predominantly wit h Airbus Industries (“Airbus”) and The Boeing Company (“Boeing ”) . CIT may also commit to purchase an aircraft directly from an airline. Aerospace equipment purchases are contracted for specific models, using baseline aircraft specifications at fixed prices, which reflect discounts from fair market purchase prices prevailing at the time of commitment. The delivery price of an aircraft may change depending on final specifications. Equipment purchases are recorded at the delivery date. The estimated commitment amounts in the preceding table are based on contracted purchase prices reduced for pre-delivery payments to date and exclude buyer furnished equipment selected by the lessee. Pursuant to existing contractual commitments, 131 aircraft remain to be purchased from Airbus, Boeing and Embraer at September 30, 2016. Aircraft deliveries are scheduled periodically through 2020. Commitments exclude unexercised options to order additional aircraft. The Company’s rail business entered into commitments to purchase railcars from multiple manufacturers. At September 30, 2016, approximately 3,500 railcars remain to be purchased from manufacturers with deliveries through 201 8 . Rail equipment purchase commitments are at fixed prices subject to price increases for certain materials. Other vendor 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 are payable on demand. As of September 30, 2016, these commitments were $7 million . These commitments are recorded in accrued expenses and Other liabilities in the condensed Consolidated Balance Sheet . |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Contingencies [Abstract] | |
Contingencies | NOTE 15 — CONTINGENCIES Litigation 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 where losses are reasonably possible, management currently estimates the aggregate range of reasonably possible losses as up to $115 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 September 30, 2016. 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 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 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 Imposto sobre Circulaco de Mercadorias e Servicos (“ICMS”) taxes charged by Brazilian states in connection with the importation of equipment. The state of São Paulo claims that Banco CIT should have paid it ICMS taxes for tax years 2006 – 2009 because Banco CIT, the purchaser, was located in São Paulo. Instead, the ICMS taxes were paid to the state of Espirito Santo where the imported equipment arrived. A regulation issued by São Paulo in December 2013 reaffirms a 2009 agreement by São 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 São Paulo’s recognition of the taxes paid to Espirito Santo have been filed in a general amnesty program. In conjunction with the stock sale, the Company posted a letter of credit in the amount of 75 million Reais ( $23 million USD ) to secure the indemnity obligation for the ICMS Tax Appeals. 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. Subject to certain requirements, the loans acquired from the FDIC are covered by indemnification agreements. 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 request 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. The Company continues to cooperate with the investigation and has begun discussions with the HUD OIG regarding the potential resolution of the matter. We do not expect the outcome of the investigation to have a material adverse effect on the Company’s financial condition or results of operations in light of existing reserves. Forward Mortgage Obligations As owner and servicer of forward residential mortgage loans, the Company is exposed to contingent obligations for various obligations including breaches of servicer obligations and other contractual obligations as set forth in industry regulations, in servicing agreements and other agreements with the applicable counterparties, such as the FDIC, Fannie Mae and other third party investors. The Company has established reserves for contingent liabilities associated with continuing forward mortgage operations. While the Company believes that such accrued liabilities are adequate, management currently estimates the aggregate range of reasonably possible losses as up to $55 million in excess of established reserves and insurance, if any. This estimate is based on information currently available as of September 30, 2016. The obligations underlying the estimated range will change from time to time, and actual results may vary significantly from this estimate . 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 and expire three years from closing (February 2017). Ocwen is responsible for liabilities arising from servicer obligations following the service transfer date because substantially all risks and rewards of ownership have been transferred; except for certain Agency fees or loan repurchase amounts. As of September 30, 2016 , the cumulative indemnification obligation totaled approximately $49 million, which reduced the Company’s $150 million maximum potential indemnity obligation to Ocwen. Because of the uncertainty in the ultimate resolution and estimated amount of the indemnification obligation, it is reasonably possible that the obligation could exceed the Company’s recorded liability by up to approximately $25 million as of September 30, 2016. In addition, CIT assumed OneWest Bank’s obligations to indemnify Specialized Loan Servicing, LLC (“SLS”) against certain claims that may arise that are attributable to the period prior to September 2013, the servicing transfer date, when OneWest sold a portion of its servicing business to SLS, such as repurchase demands and non-recoverable servicing advances. SLS is responsible for substantially all liabilities arising from servicer obligations following the service transfer date . |
Certain Relationships And Relat
Certain Relationships And Related Transactions | 9 Months Ended |
Sep. 30, 2016 | |
Certain Relationships And Related Transactions [Abstract] | |
Certain Relationships And Related Transactions | NOTE 16 — CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS During the third quarter of 2015, Strategic Credit Partners Holdings LLC (the “JV”), a joint venture between CIT Group Inc. (“CIT”) and TPG Special Situations Partners (“TSSP”), was formed. The JV extends credit in senior-secured, middle-market corporate term loans, and, in certain circumstances, is a participant to such loans. Participation could be in corporate loans originated by CIT. 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 September 30, 2016, loans of $164 million were sold to the joint venture, while our investment was $9.5 million and $4.6 million at September 30, 2016 and December 31, 2015, respectively. CIT also maintains an equity interest of 10% in the JV. During 2014, the Company formed two joint ventures (collectively “TC-CIT Aviation”) between CIT Aerospace and Century Tokyo Leasing Corporation (“CTL”). CIT records its net investment under the equity method of accounting. Under the terms of the agreements, TC-CIT Aviation will acquire commercial aircraft that will be leased to airlines around the globe. CIT Aerospace is responsible for arranging future aircraft acquisitions, negotiating leases, servicing the portfolio and administering the entities. Initially, CIT Aerospace sold 14 commercial aircraft to TC-CIT Aviation in transactions with an aggregate value of approximately $0.6 billion; including nine aircraft sold in 2014 and five aircraft sold in the first quarter of 2015 (these five aircraft were sold at an aggregate amount of $240 million). In addition to the initial 14 commercial aircraft, CIT sold 5 commercial aircraft with an aggregate value of $226 million in the year ended December 31, 2015. There were no aircraft sold to TC-CIT Aviation year to date, as of September 30, 2016. In 2016, servicing fees of $7.1 million were billed by CIT to TC-CIT Aviation for the nine months ended September 30, 2016. CIT also made and maintains a minority equity investment in TC-CIT Aviation in the amount of approximately $65 million at September 30, 2016. CTL made and maintains a majority equity interest in the joint venture and is a lender to the companies. 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 $243 million and $224 million at September 30, 2016 and December 31, 2015, respectively, of tax credit investments and investments in non-consolidated entities (including the two joint ventures discussed above) 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. As of September 30, 2016 and December 31, 2015, a wholly-owned subsidiary of the Company subserviced loans for a related party with unpaid principal balances of $178.8 million and $204.5 million, respectively. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Business Segment Information [Abstract] | |
Business Segment Information | NOTE 17 — BUSINESS SEGMENT INFORMATION We changed our segment reporting effective January 1, 2016, following the previously announced reorganized management structure. CIT manages its business and reports its financial results in four operating segments: Commercial Banking, Transportation Finance, Consumer and Community Banking, and Non-Strategic Portfolios (“NSP”), and a fifth non-operating segment, Corporate and Other. The following summarizes changes to our segment presentation from December 31, 2015: · Commercial Banking (formerly North America Banking, or “NAB”) no longer includes the Consumer Banking division or the Canadian lending and equipment finance business. Commercial Banking is comprised of three divisions, Commercial Finance, Real Estate Finance, and Business Capital. Business Capital includes the former Equipment Finance and Commercial Services divisions. · Transportation Finance (formerly Transportation & International Finance or “TIF”) no longer includes the China and the U.K. businesses. Transportation Finance is comprised of three divisions, Aerospace, Rail, and Maritime Finance. · Consumer and Community Banking is a new segment that includes Legacy Consumer Mortgages (the former LCM segment) and other banking divisions that were included in the former NAB segment (Consumer Banking, Mortgage Lending, Wealth Management and SBA Lending). · NSP includes businesses that we no longer consider strat egic, including those in Canada, China and the recently exited U.K., that had been included in the former NAB and TIF segments. Historic al data will also include other businesses and portfolios that have been sold, such as Mexico and Brazil. All prior period comparisons are conformed to the current period presentation. Management’s Policy in Identifying Reportable Segments CIT’s reportable segments are comprised of divisions that 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. The Board of Directors and executive management receive and review financial data at the segment level . Types of Products and Services Commercial Banking provides a range of lending, leasing and deposit products, as well as ancillary products and services, including factoring, cash management and advisory services, to small and medium- sized companies and consumers in the U.S. Lending products include revolving lines of credit and term loans and, depending on the nature and quality of the collateral, may be referred to as asset-based loans or cash flow loans. These are primarily composed of senior secured loans collateralized by accounts receivable, inventory, machinery & equipment, real estate, and intangibles, to finance the various needs of our customers, such as working capital, plant expansion, acquisitions and recapitalizations. Loans are originated through direct relationships with borrowers or through relationships with private equity sponsors. Revenues generated by Commercial Banking include interest earned on loans, rents collected on leased assets, fees and other revenue from banking and leasing activities and capital markets transactions, and commissions earned on factoring and related activities. Transportation Finance offers secured lending and leasing products to midsize and larger companies across the aerospace, rail and maritime industries. Revenues are generated by rents collected on leased assets, interest on loans, fees, and gains from assets sold. As detailed in Note 19 – Subsequent Events, the Company entered into a definitive agreement to sell the vast majority of the existing Commercial Air business, except for certain aerospace loans funded in CIT Bank . Consumer and Community Banking, through its 70 branches and on-line channel, offers deposits and lending to borrowers who are buying or refinancing homes and custom loan products tailored to the clients’ financial needs. Products include checking, savings, certificates of deposit, and residential mortgage loans. The segment includes a wealth management group that offers banking services to high net worth individuals. The segment also originates qualified Small Business Administration (“SBA” ) 504 and 7(a) loans. Consumer and Community Banking also consists of legacy portfolios of single family residential mortgages and reverse mortgages, certain of which are covered by loss sharing agreements with the FDIC. Certain Covered Loans in this segment were previously acquired by OneWest Bank in connection with the lndyMac, First Federal and La Jolla transactions. The FDIC indemnified OneWest Bank against certain future losses sustained on these loans. CIT may now be reimbursed for losses under the terms of the loss shar e agreements with the FDIC. Eligible losses are submitted to the FDIC for reimbursement when a qualifying loss event occurs ( e.g., 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). Reimbursements approved by the FDIC are usually received within 60 days of submission. NSP consists of portfolios that we no longer consider strategic. The 2016 balances reflect activity from portfolios in Canada and China, as well as from the sale of a U.K portfolio. These portfolios include equipment financing, secured lending and leasing to small and middle-market businesses. The prior periods also include activity from other international portfolios in Mexico and Brazil, which were sold in August and December 2015, respectively , and the U.K., which was sold in January 2016. 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 Income), restructuring charges for severance and facilities exit activities (operating expenses), certain intangible asset amortization expenses (other expenses) and loss on debt extinguishments and deposit redemptions . Segment Profit and Assets The following table presents segment data. The three-month and nine-month results for 2015 include only the results of OneWest Bank’s operations for a partial period in the third quarter of 2015. Quarter Ended September 30, 2016 Transportation Finance Commercial Banking Consumer and Community Banking Non-Strategic Portfolios Corporate & Other Total CIT Interest income $ 51.3 $ 285.0 $ 102.9 $ 22.6 $ 28.3 $ 490.1 Interest expense (146.7) (76.2) (1.9) (12.7) (41.9) (279.4) Provision for credit losses (5.5) (39.2) (1.6) 0.1 – (46.2) Rental income on operating leases 527.9 31.9 – 3.8 – 563.6 Other income 6.5 65.9 7.1 4.9 (10.5) 73.9 Depreciation on operating lease equipment (154.7) (24.4) – – – (179.1) Maintenance and other operating lease expenses (60.4) – – – – (60.4) Operating expenses / loss on debt extinguishment and deposit redemption (61.8) (161.2) (87.7) (11.0) (15.4) (337.1) Income (loss) from continuing operations before (provision) benefit for income taxes $ 156.6 $ 81.8 $ 18.8 $ 7.7 $ (39.5) $ 225.4 Quarter Ended September 30, 2015 Interest income $ 50.2 $ 251.5 $ 73.9 $ 43.7 $ 18.4 $ 437.7 Interest expense (139.7) (67.3) (13.8) (27.3) (32.2) (280.3) Provision for credit losses 1.6 (43.2) (5.1) (3.2) – (49.9) Rental income on operating leases 505.7 24.6 – 9.0 – 539.3 Other income 23.0 70.7 0.1 (35.4) (19.2) 39.2 Depreciation on operating lease equipment (137.5) (18.1) – (3.5) – (159.1) Maintenance and other operating lease expenses (55.9) – – – – (55.9) Operating expenses / loss on debt extinguishment (53.6) (146.5) (59.0) (26.0) (49.1) (334.2) Income (loss) from continuing operations before (provision) benefit for income taxes $ 193.8 $ 71.7 $ (3.9) $ (42.7) $ (82.1) $ 136.8 Nine Months Ended September 30, 2016 Interest income $ 153.9 $ 861.3 $ 311.5 $ 70.8 $ 83.3 $ 1,480.8 Interest expense (441.3) (224.5) (16.7) (40.9) (124.9) (848.3) Provision for credit losses (43.8) (124.1) (5.8) 0.1 – (173.6) Rental income on operating leases 1,609.0 87.7 – 11.6 – 1,708.3 Other income 37.0 182.3 26.9 26.1 6.8 279.1 Depreciation on operating lease equipment (464.9) (65.9) – – – (530.8) Maintenance and other operating lease costs (181.5) – – – – (181.5) Operating expenses / loss on debt extinguishment (184.7) (468.3) (263.2) (35.2) (77.4) (1,028.8) Income (loss) from continuing operations before (provisions) benefit for income taxes $ 483.7 $ 248.5 $ 52.7 $ 32.5 $ (112.2) $ 705.2 Select Period End Balances Loans $ 2,224.2 $ 20,564.7 $ 7,129.3 $ – $ – $ 29,918.2 Credit balances of factoring clients – 1,228.9 – – – 1,228.9 Assets held for sale 1,084.6 331.7 41.7 1,004.1 – 2,462.1 Operating lease equipment, net 16,606.2 348.6 – – – 16,954.8 Nine Months Ended September 30, 2015 Interest income $ 137.3 $ 618.7 $ 73.9 $ 145.3 $ 27.3 $ 1,002.5 Interest expense (439.0) (196.8) (13.8) (99.3) (67.9) (816.8) Provision for credit losses (5.9) (85.6) (5.1) (6.3) – (102.9) Rental income on operating leases 1,500.3 71.5 – 29.8 1,601.6 Other income 72.2 201.6 0.1 (42.6) (42.2) 189.1 Depreciation on operating lease equipment (410.1) (52.8) – (10.8) – (473.7) Maintenance and other operating lease costs (151.4) – – – – (151.4) Operating expenses / loss on debt extinguishment (184.6) (410.5) (59.0) (97.6) (59.2) (810.9) Income (loss) from continuing operations before (provisions) benefit for income taxes $ 518.8 $ 146.1 $ (3.9) $ (81.5) $ (142.0) $ 437.5 Select Period End Balances Loans $ 3,305.5 $ 21,849.5 $ 7,251.2 $ – $ – $ 32,406.2 Credit balances of factoring clients – 1,609.3 – – – 1,609.3 Assets held for sale 142.3 174.4 45.8 1,791.8 – 2,154.3 Operating lease equipment, net 15,287.3 250.9 – – – 15,538.2 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill [Abstract] | |
Goodwill | NOTE 18 – GOODWILL The following table summarize s the goodwill balance by segment: Transportation Finance Commercial Banking Consumer and Community Banking Total December 31, 2015 (1) $ 245.0 $ 579.1 $ 374.2 $ 1,198.3 Additions, Other activity (2) (7.3) (8.9) (11.6) (27.8) September 30, 2016 $ 237.7 $ 570.2 $ 362.6 $ 1,170.5 (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 good will allocation among Consumer and Community 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) Includes purchase accounting measurement period adjustments in C ommercial Banking and Consumer and Community Banking as well as the transfer of assets to held for sale and foreign exchange translation adjustments in Transportation Finance. The December 31, 2015 goodwill included amounts from CIT’s emerge nce from bankruptcy in 2009, its 2014 acquisitions of Capital Direct Group and its subsidiaries (“Direct Capital”), and Nacco, an independent full service railcar lessor , and its 2015 acquisition of OneWest . On January 31, 2014, CIT acquired 100% of the outstanding shares of Paris-based Nacco, an independent full service railcar lessor in Europe. 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 at their estimated fair value as of the acquisition date resulting in $663.0 million of goodwill recorded as of December 31, 2015 . 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 to $642.5 million. $362.6 million of the goodwill balance is associated with the Consumer and Community Banking business segment. The remaining goodwill was all ocated to the Commercial Finance a nd Real Estate Finance reporting units in Commercial Banking . 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. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 19 – SUBSEQUENT EVENTS Agreement to Sell CIT Commercial Air Business On October 6, 2016, CIT Group Inc., a Delaware corporation (the “Company”) announced that it has agreed to sell CIT Commercial Air, its commercial aircraft leasing business, to Avolon Holdings Limited (“Avolon”), an international aircraft leasing company and a wholly-owned subsidiary of Bohai Capital Holding Co. Ltd. (“Bohai”), pursuant to a Purchase and Sale Agreement by and among C.I.T. Leasing Corporation, a wholly-owned subsidiary of the Company (“CIT Leasing”), Park Aerospace Holdings Limited, a wholly-owned subsidiary of Avolon, the Company, Bohai, and Avolon (the “Agreement”). The Agreement provides for the acquisition of all of the capital stock or other equity interests of C2 Aviation Capital, Inc., a Delaware corporation and wholly owned subsidiary of CIT Leasing (the “Transaction”). CIT is selling the CIT Commercial Air business (the “Business”) to Avolon, including its operations, forward order commitments, and as of June 30, 2016, certain assets of $11.1 billion and liabilities of $1.7 billion. The aggregate purchase price payable by Purchaser and its subsidiaries to CIT and its subsidiaries for the Transaction (the “Purchase Price”) is an amount in cash equal to (a) the adjusted net asset amount of the Business (the “Net Asset Value”) as of the closing of the Transaction (the “Closing”) plus (b) a premium of $627 million. As of June 30, 2016, the Net Asset Value was approximately $9.4 billion, which would have resulted in an aggregate purchase price of approximately $10.0 billion. The Net Asset Value is subject to fluctuation in the ordinary course of business through closing and there can be no assurances as to whether the Net Asset Value at closing will be higher, lower or the same as the Net Asset Value as of June 30, 2016. The transaction is subject to receipt of regulatory approvals in the United States, China and certain other foreign jurisdictions, the approval of Bohai’s shareholders and the satisfaction of customary closing conditions. The Transaction is expected to close by the end of the first quarter of 2017. HNA Group, Bohai’s majority shareholder, has agreed to vote its shares in Bohai in favor of the transaction. To reflect its commitment to the transaction, Avolon has deposited $500 million into an escrow account with a U.S. bank (which will be increased to $600 million during the pendency of the transaction), which is payable to CIT at closing as part of the purchase price and in certain circumstances if the transaction is not consummated. Amended Capital Plan The Company received a “non-objection” from the Federal Reserve Bank of New York to the Company’s Amended Capital Plan submitted to reflect the proposed sale or spin-off of Commercial Air under the 2016 Comprehensive Capital Analysis and Review (“CCAR”). In connection with the proposed transaction, the Amended Capital Plan includes a return to shareholders of common equity of $2.975 billion , and additional common equity returns of up to $ 325 million, contingent on the issuance of an equivalent amount of Tier 1 qualifying preferred stock. The Amended Capital Plan also include d dividends on common stock totaling $64 million per year after the Transaction is completed. The capital distributions are subject to approval of the Board of Directors of the Company (the “Board”) and may be in the form of share repurchases, special dividends, or a combination of the two. The Company’s quarterly dividends are subject to the Board’s approval at the customary times those dividends are declared. The Company’s management and the Board will determine the timing and amount of any share repurchases and special dividends that may be authorized based on market conditions and other considerations. Any share repurchases may be effected 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. CIT Completes Sale of Canadian Equipment Finance and Corporate Finance Businesses In October 2016, CIT completed the sale of its Canadian equipment finance and corporate finance businesses (CIT Canada), with assets of approximately $700 million, to Laurentian Bank of Canada. As part of the sale, CIT transfer red approximately 135 employees of CIT Canada to Laurentian Bank. |
Business And Summary Of Signi27
Business And Summary Of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Business And Summary Of Significant Accounting Policies [Abstract] | |
Basis of Financial Information | Basis of Financial Information These consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q for interim financial information and accordingly do not include all information and note disclosures required by generally accepted accounting principles in the United States of America (“GAAP”) for complete financial statements. The financial statements in this Form 10-Q, in the opinion of management, include all adjustments, consisting only of normal recurring adjustments, n ecessary for a fair statement of CIT’s financial position, results of operations and cash flows in accordance with GAAP. These consolidated financial statements should be read in conjunction with our Form 10-K for the year ended December 31, 2015, as updated by the Company’s Current Report filed on Form 8-K filed on September 26, 2016, which are on file with the U.S. Securities and Exchange Commission. Effective March 31, 2016, CIT re-organized its reportable operating segments to Commercial Banking, Transportation Finance, Consumer and Community Banking and Non-Strategic Portfolios. Refer to Note 17—Business Segment Information for further discussion. The accounting and financial reporting policies of CIT Group Inc. conform to GAAP and the preparation of the consolidated financial statements requires management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates and assumptions. Som e o f th e mo re signifi can t estimate s include : allowanc e fo r loa n losses , loan impairment , fai r valu e determination , leas e r esidua l values , liabili tie s fo r uncertai n ta x positions , r ealizabilit y o f defer r e d ta x assets, pu r chas e accountin g adjustments , indemnificatio n assets , good will , intangibl e assets , an d contingen t liabilities, including amounts associated with the discontinued operation . Additionally whe re applicable , th e policie s confor m t o accountin g an d r eportin g guideline s p r escribe d b y ban k r egulator y authorities. |
Principles Of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include financial information related to CIT Group Inc. and its majority-owned subsidiaries and those variable interest entities (“VIEs”) where the Company is the primary beneficiary. 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. The results for the quarter and nine months ended September 30, 2016 contain activity of OneWest Bank, National Association (“OneWest Bank”) , acquired on August 3, 2015 . The comparable 2015 periods presented in this Form 10-Q includes activity only from the acquisition date through September 30, 2015. See Note 2 – Acquisition and Disposition Activities for details. The current period’s results of operations do not necessarily indicate the results that may be expected for any other interim period or for the full year as a whole. |
Discontinued Operations | Discontinued Operations The Financial Freedom business, a division of CIT Bank, N.A. (formerly a division of OneWest Bank) that services reverse mortgage loans, was acquired as part of the OneWest Transaction. Pursuant to ASC 205-20, the Financial Freedom business was reflected as discontinued operations as of the August 3, 2015 OneWest Transaction and in the subsequent periods. The business includes the entire third party servicing of reverse mortgage operations, which consist of personnel, systems and servicing assets. The 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. Unrelated to the Financial Freedom business, continuing operations includes a portfolio of reverse mortgages, which is reported in the Consumer and Community Banking segment. In addition to the mortgage servicing rights, discontinued operations reflect HECM loans, which were pooled and securitized in the form of GNMA HMBS and sold into the secondary market with servicing retained. These HECM loans are insured by the Federal Housing Administration (“FHA”). Based upon the structure of the GNMA HMBS the Company has determined that the HECM loans that were securitized as GNMA HMB S had not met all of the requirements for sale accounting and therefore, has accounted for these transfers as a financing transaction. Under a financing transaction, the transferred loans remain on the Company’s statement of financial position and the proceeds received are recorded as a secured borrowing. Discontinued Operations are discussed in Note 2 — Acquisition and Disposition Activities. |
Revisions of Previously Issued Statements of Cash Flows | Revisions of Previously Issued Statements of Cash Flows In preparing the financial statements for the nine months ended September 30, 2016, the Company discovered and corrected immaterial errors impacting the classification of certain balances between line items and categories presented in the Consolidated Statements of Cash Flows. The most significant of these errors related to classification issues between the operating and investing sections. The Company has evaluated the impact of the errors and has concluded that individually and in the aggregate, the errors were not material to any previously issued Statement of Cash Flows. However, the Company has elected to revise the Statements of Cash Flows for the nine months ended September 30, 201 5 , in this filing, and will revise previously issued balances in the Statements of Cash Flows when they are next filed in the Company’s Form 10-Q for the quarter s ended March 31, 2017 and June 30, 2017, and in the Form 10-K for the year ended December 31, 2016. Q uarter ended September 30, 201 5 The amounts presented comparatively for the nine months ended September 30, 2015 have been revised for these misclassifications. For the nine months ended September 30, 2015, the misclassifications resulted in an under statement of net cash flows provided by operations of $ 13 million, an understatement of net cash flows provided by investing activities of $ 9 million, and an under statement of net cash flows used in financing activities of $22 million. Quarter ended June 30, 2016 The amounts presented comparatively for the six months ended June 30, 2016 in the Company’s Form 10-Q for the quar ter ended June 30, 2017 will be revised for these misclassifications. For the six months ended June 30, 2016, the misclassifications resulted in an understatement of net cash flows provided by operations of $20.4 million, which will result in a revised balance of $1,036.2 million, an understatement of net cash flows used in investing activities of $20.4 million, which will result in a revised balance of $(326.8) million, with no impact on net cash flows used in financing activities. Quarter ended March 31, 2016 The amounts presented comparatively for the three months ended March 31, 2016 in the Company’s Form 10-Q for the quarter ended March 31, 2017 will be revised for these misclassifications. For the three months ended March 31, 2016, the misclassifications resulted in an overstatement of net cash flows provided by operations of $43.5 million, which will result in a revised balance of $522.5 million, an overstatement of net cash flows used in investing activities of $73.2 million, which will result in a revised balance of $ (299.2) million, and an understatement of net cash flows used in financing activities of $29.7 million which will result in a revised balance of $ (375.4) million. Year ended December 31, 2015 The amounts presented comparatively for the year ended December 31, 2015 in the Company’s Form 10-K for the year ended December 31, 2016 will be revised for these misclassifications. For the year ended December 31, 2015, the misclassifications resulted in an understatement of net cash flows provided by operations of $19.3 million, which will result in a revised balance of $871.2 million, an overstatement of net cash flows provided by investing activities of $19.3 million, which will result in a revised balance of $1,463.8 million, with no impact on net cash flows used in financing activities. Year ended December 31, 2014 The amounts presented comparatively for the year ended December 31, 2014 in the Company’s Form 10-K for the year ended December 31, 2016 will be revised for these misclassifications. For the year ended December 31, 2014, the misclassifications resulted in an understatement of net cash flows provided by operations of $13.7 million, which will result in a revised balance of $1,206.4 million, an understatement of net cash flows used in investing activities of $13.7 million, which will result in a revised balance of $(981.4) million, with no impact on net cash flows used in financing activities. These revisions had no impact on the Company’s reported net income, shareholders’ equity, ne t change in cash, total assets, or total liabilities for any period. |
Accounting Pronouncements Adopted | Accounting Pronouncements Adopted During the first quarter of 2016, the Company adopted the following Accounting Standards Updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”): · ASU 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period ; · ASU 2015-01, Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items ; · ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis ; · ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs ; and · ASU 2015-15, Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting. Stock Compensation ASU 2014-12 directs that a performance target that affects vesting and can be achieved after the requisite service period is a performance condition. That is, compensation cost would be recognized over the required service period if it is probable that the performance condition would be achieved. The total amount of compensation cost recognized during and after the requisite service period would reflect the number of awards that are expected to vest and would be adjusted to reflect those awards that ultimately vest. The ASU does not require additional disclosures. CIT adopted this ASU, effective January 1, 2016, for all awards granted or modified after the effective date. Adoption of this guidance did not have a significant impact on CIT’s financial statements or disclosures. Extraordinary and Unusual Items ASU 2015-01 eliminates the concept of extraordinary item s and the need for entities to evaluate whether transactions or events are both unusual in nature and infrequently occurring. The ASU precludes (1) segregating an extraordinary item from the results of ordinary operations; (2) presenting separately an extraordinary item on the income statement, net of tax, after income from continuing operations; and (3) disclosing income taxes and earnings-per-share data applicable to an extraordinary item. However, the ASU does not affect the reporting and disclosure requirements for an event or transaction that is unusual in nature or that occurs infrequently. Consequently, although the Company will no longer need to determine whether a transaction or event is both unusual in nature and infrequently occurring, CIT will still need to assess whether items are unusual in nature or infrequent to determine if the additional presentation and disclosure requirements for these items apply. CIT adopted this ASU effective January 1, 2016 . Adoption of this guidance did not have a significant impact on CIT’s financial statements or disclosures. Consolidation ASU 2015-02 amended the current consolidation guidance to change 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 variable interest entity (“VIE”), and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. It also eliminates the VIE consolidation model based on majority exposure to variability that applied to certain investment companies and similar entities. The Board changed the way the voting rights characteristic in the VIE scope determination is evaluated for corporations, which may significantly impact entities for which decision making rights are conveyed through a contractual arrangement. Under ASU 2015-02: · More limited partnerships and similar entities will be evaluated for consolidation under the revised consolidation requirements that apply to VIEs. · Fees paid to a decision maker or service provider are less likely to be considered a variable interest in a VIE. · Variable interests in a VIE held by related parties of a reporting enterprise are less likely to require the reporting enterprise to consolidate the VIE. · There is a new approach for determining whether equity at-risk holders of entities that are not similar to limited partnerships have power to direct the entity’s key activities when the entity has an outsourced manager whose fee is a variable interest. · The deferral of consolidation requirements for certain investment companies and similar entities of the VIE in ASU 2009-17 is eliminated. The impacts of the update include: · A new consolidation analysis is required for VIEs, including many limited partnerships and similar entities that previously were not considered VIEs. · It is less likely that the general partner or managing member of limited partnerships and similar entities will be required to consolidate the entity when the other investors in the entity lack both participating rights and kick-out rights. · Limited partnerships and similar entities that are not VIEs will not be consolidated by the general partner. · It is less likely that decision makers or service providers involved with a VIE will be required to consolidate the VIE. · Entities for which decision making rights are conveyed through a contractual arrangement are less likely to be considered VIEs. · Reporting enterprises with interests in certain investment companies and similar entities that are considered VIEs will no longer evaluate those entities for consolidation based on majority exposure to variability. CIT adopted ASU 2015-02, effective January 1, 2016, under the modified retrospective approach. Based on CIT’s re-assessment of its VIEs under the amended guidance, the adoption of this ASU did not have a significant impact on CIT’s financial statements or disclosures. Debt Issuance Costs ASU 2015-03 requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. Debt issuance costs are specific incremental costs, other than those paid to the lender, that are directly attributable to issuing a debt instrument ( i.e., third party costs). Prior to the issuance of the standard, debt issuance costs were required to be presented in the balance sheet as a deferred charge ( i.e., an asset). ASU 2015-15 clarified ASU 2015-03, which did not address the balance sheet presentation of debt issuance costs that are either (1) incurred before a debt liability is recognized ( e.g., before the debt proceeds are received), or (2) associated with revolving debt arrangements. ASU 2015-15 states that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing deferred debt issuance costs ratably over the term of the LOC arrangement, regardless of whether there are outstanding borrowings under that LOC arrangement. In accordance with the new guidance, CIT reclassified deferred debt costs previously included in other assets to borrowings in the first quarter of 2016 and conformed prior periods. The adoption of this guidance did not have a significant impact on CIT’s 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: · ASU 2014-09, Revenue from contracts with customers (Topic 606) · ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern; · ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date; · ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ; · ASU 2016-02, Leases (Topic 842) ; · ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships ; · ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments ; · ASU 2016-07, Investments—Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting ; · ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) ; · ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting; · ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing ; · ASU 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC guidance because of ASU 2014-09 and ASU 2014-16 pursuant to staff announcements at the March 3, 2016 EITF meeting; · ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients; · ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments; and · ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern ASU 2014-15 describes how entities should assess their ability to meet their obligations and sets disclosure requirements about how this information should be communicated. The standard will be used along with existing auditing standards, and provides the following key guidance: 1. Entities must perform a going concern assessment by evaluating their ability to meet their obligations for a look-forward period of one year from the financial statement issuance date (or date the financial statements are available to be issued). 2. Disclosures are required if it is probable an entity will be unable to meet its obligations within the look-forward period. Incremental substantial doubt disclosure is required if the probability is not mitigated by management’s plans. 3. Pursuant to the ASU, substantial doubt about an entity’s ability to continue as a going concern exists if it is probable that the entity will be unable to meet its obligations as they become due within one year after the date the annual or interim financial statements are issued or available to be issued (assessment date). The new standard applies to all entities for the first annual period ending after December 15, 2016. Company management is responsible for assessing going concern uncertainties at each annual and interim reporting period thereafter. The adoption of this guidance is not expected to have a significant impact on CIT’s financial statements or disclosures. Financial Instruments ASU 2016-01 addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The main objective is enhancing the reporting model for financial instruments to provide users of financial statements with more decision-useful information. The amendments to current GAAP are summarized as follows: · Supersede current guidance to classify equity securities into different categories ( i.e., trading or available-for-sale); · Require equity investments to be measured at fair value with changes in fair value recognized in net income, rather than other comprehensive income. This excludes those investments accounted for under the equity method, or those that result in consolidation of the investee; · Simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment (similar to goodwill); · Eliminate the requirement to disclose the method(s) and significant assumptions used to estimate fair value that is required to be disclosed for financial instruments measured at amortized cost; · Require the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes; · Require an entity to present separately in other comprehensive income the portion of the change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with fair value option for financial instruments; · Require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset ( i.e., securities, or loans and receivables) on the balance sheet or accompanying notes to the financial statements; · Clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. For public business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. CIT is currently evaluating the impact of adopting this amendment on its financial instruments. Leases ASU 2016-02, which is intended to increase transparency and comparability of accounting for lease transactions, will require all leases to be recognized on the balance sheet as lease assets and lease liabilities. 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. Lessees will need to recognize a right-of-use asset and a lease liability for virtually all of their leases. The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustment, such as for initial direct costs. 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. The ASU will require both quantitative and qualitative disclosures regarding key information about leasing arrangements. The standard is effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. 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. CIT is currently evaluating the effect of this ASU on its financial statements and disclosures. Derivatives and Hedge Accounting ASU 2016-05 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 dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. An entity will, however, still need to evaluate whether it is probable that the counterparty will perform under the contract as part of its ongoing effectiveness assessment for hedge accounting. Therefore, a novation (replacing one counterparty to a derivative instrument with a new counterparty) of a derivative to a counterparty with a sufficiently high credit risk could still result in the dedesignation of the hedging relationship. The new guidance, which may be applied either on a prospective basis or a modified retrospective basis, is effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. CIT is currently reviewing the impact of adopting this guidance on CIT’s financial statement or disclosures. ASU 2016-06 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 rates or credit risks. The new guidance is effective for public business entities in interim and annual periods in fiscal years beginning after December 15, 2016. Early adoption is permitted in any interim period for which the entity’s financial statements have not been issued but would be retroactively applied to the beginning of the year that includes that interim period. CIT is currently evaluating the effect of this ASU on its financial statements and disclosures. Equity Method and Joint Ventures ASU 2016-07 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 for investments that qualify for the equity method of accounting after the effective date. For all entities, public and nonpublic, the new standard is effective for interim and annual periods beginning after December 15, 2016. Early adoption is permitted. CIT is currently evaluating the effect of this ASU on its financial statements and disclosures. Revenue Recognition ASU 2014-09 will supersede virtually all of the revenue recognition guidance in GAAP, except as it relates to lease accounting. The core principle of the five-step model is that a company will recognize revenue when it transfers control of goods or services to customers at an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. In doing so, many companies will have to make more estimates and use more judgment than they do under current GAAP. The five-step analysis of transactions, to determine when and how revenue is recognized, includes: 1. Identify the contract with the customer. 2. Identify the performance obligations in the contract. 3. Determine the transaction price. 4. Allocate the transaction price to the performance obligations. 5. Recognize revenue when or as each performance obligation is satisfied. Companies can choose to apply the standard using either the full retrospective approach or a modified retrospective approach. Under the modified approach, financial statements will be prepared for the year of adoption using the new standard, but prior periods will not be adjusted. Instead, companies 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 today’s revenue guidance. ASU 2015-14 deferred the effective date one year for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period, which means CIT would apply the standard in their SEC filings for the first quarter of 2018. Public companies that choose full retrospective application will need to apply the standard to amounts they report for 2016 and 2017 on the face of their full year 2018 financial statements. ASU 2016-08 clarifies that when another party, along with the entity, is involved in providing a good or service to a customer, the entity must determine if the nature of its obligation is to provide a good or service to a customer (that is, to be a principal) or is to arrange for the good or service to be provided to the customer (that is, to act as an agent). When (or as) an entity that is a principal satisfies a performance obligation, the entity recognizes revenue in the gross amount of consideration to which it expects to be entitled in exchange for the specified good or service transferred to the customer. When (or as) an entity that is an agent satisfies a performance obligation, the entity recognizes revenue in the amount of any fee or commission to which it expects to be entitled in exchange for arranging for the specified good or service to be provided by the other party. ASU 2016-08 also amends the principal-versus agent implementation guidance and illustrations in ASU 2014-09. ASU 2016-10 clarifies identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. For identifying performance obligations, the ASU specifies that an entity is not required to assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract. In addition, an entity is permitted to account for shipping and handling activities that occur after the customer has obtained control of a good as an activity to fulfill the promise to transfer the good rather than as an additional promised service. The ASU also improves the guidance on assessing whether promises to transfer goods or services are separately identifiable. For licensing implementation, the ASU clarifies the timing of revenue recognition from a license to intellectual property. In addition, a sales-based or usage-based royalty is promised in exchange for a license and, therefore, the royalty’s recognition constraint applies whenever a license is the sole or predominant item to which the royalty relates. ASU 2016-11 rescinds certain SEC guidance from the FASB Accounting Standards Codification in response to announcements made by the SEC staff at the EITF’s March 3, 2016, meetings. Specifically, the ASU supersedes SEC observer comments upon the adoption of ASU 2014-09 on topics related to revenue and expense recognition for freight services in process, and accounting for shipping and handling fees and costs, consideration given by a vendor to a customer, and gas-balancing arrangements. ASU 2016-12 amends certain aspects of ASU 2014-09, which includes the following: · Collectability — ASU 2016-12 clarifies the objective of the entity’s collectability assessment and contains new guidance on when an entity would recognize as revenue consideration it receives if the entity concludes that collectability is not probable; · Presentation of sales tax and other similar taxes collected from customers — Entities are permitted to present revenue net of sales taxes collected on behalf of governmental authorities ( i.e., to exclude from the transaction price sales taxes that meet certain criteria); · Noncash consideration — An entity’s calculation of the transaction price for contracts containing noncash consideration would include the fair value of the noncash consideration to be received as of the contract inception date. Further, subsequent changes in the fair value of noncash consideration after contract inception would be subject to the variable consideration constraint only if the fair value varies for reasons other than its form; · Contract modifications and completed contracts at transition — The ASU establishes a practical expedient for contract modifications at transition and defines completed contracts as those for which all (or substantially all) revenue was recognized under the applicable revenue guidance before the new revenue standard was initially applied; · Transition technical correction — Entities that elect to use the full retrospective transition method to adopt the new revenue standard would no longer be required to disclose the effect of the change in accounting principle on the period of adoption; however, entities would still be required to disclose the effects on pre-adoption periods that were retrospectively adjusted. The effective date and transition of ASU 2016-08, 2016-10, 2016-11 and 2016-12 aligns with ASU 2014-09, as amended by ASU 2015-14, effective for fiscal years beginning after December 15, 2017. CIT is currently reviewing the impact of adoption of these ASUs, the method of adoption and the effect of the standard on its ongoing financial reporting. Stock Compensation ASU 2016-09 simplifies several aspects of the accounting for share-based payment award transactions to employees, including: · Requiring companies to record all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement; a Company would account for excess tax benefits and deficiencies as discrete items in the period in which they occur (i.e., they would be excluded from the estimated annual effective tax rate). · Eliminating the requirement that excess tax benefits be realized ( i.e., reduce income taxes payable) before being recognized, and to require excess tax benefits to be presented as an operating activity in the statement of cash flows. · Using employee’s shares to satisfy the employers’ statutory income tax withholding obligation. The threshold to qualify for equity classification permits withholding up to the maximum statutory tax rates in the applicable jurisdictions. Cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity. · Allowing an entity to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. For the amendments that change the recognition and measurement of share-based payment awards, the new guidance requires transition under a modified retrospective approach, with a cumulative-effect adjustment made to retained earnings as of the beginning of the fiscal period in which the guidance is adopted. Prospective application is required for the accounting for excess tax benefits and tax deficiencies and for use of the practical expedient for estimating the expected term. An entity should apply the new guidance retrospectively for all periods presented related to the classification of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirements. It can elect to apply the new guidance either prospectively or retrospectively, however, to the presentation of excess tax benefits on the statement of cash flows. The guidance is effective for public entities for annual reporting periods beginning after December 15, 2016. Early adoption is permitted. CIT is currently evaluating the effect of this ASU on its financial statements and disclosures. Credit Losses ASU 2016-13 introduces a forward-looking “expected loss” model (the “Current Expected Credit Losses” (CECL) model) to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale (AFS) debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. CECL Model The CECL model will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes loans, held-to-maturity debt securities, loan commitments, financial guarantees, and net investments in leases, as well as reinsurance and trade receivables. Upon initial recognition of the exposure, the CECL model requires an entity to estimate the credit losses expected over the life of an exposure. The estimate of expected credit losses should consider historical information, current information, and reasonable and supportable forecasts, including estimates of prepayments. Financial instruments with similar risk characteristics should be grouped together when estimating expected credit losses. The ASU does not prescribe a specific method to make the estimate so its application will require significant judgment. Generally, the initial estimate of the expected credit losses and subsequent changes in the estimate will be reported in current earnings. The expected credit losses will be recorded through an allowance for loan and lease losses (ALLL) in the statement of financial position. AFS Debt Securities The FASB made targeted improvements to the existing other-than-temporary impairment (OTTI) model in ASC 320 for certain AFS debt securities to eliminate the concept of “other-than-temporary” from that model. The new model will require an estimate of expected credit losses only when the fair value is below the amortized cost of the asset. The notable changes under the ASU include: " Use of an ALLL approach (versus permanently writing down the security’s cost basis) for impairment; " Limit the ALLL to the amount at which the security’s fair value is less than its amortized cost basis; " Removing the consideration for the length of time fair value has been less than amortized cost when assessing credit loss; " Removing the consideration for recoveries in fair value after the balance sheet date when assessing whether a credit loss exists. Purchased Financial Assets with Credit Deterioration The purchased financial assets with credit deterioration (PCD) model applies to purchased financial assets (measured at amortized cost or AFS) that have experienced more than insignificant credit deterioration since origination. This represents a change from the scope of what are considered purchased credit-impaired (PCI) assets in ASC 310-30 under current GAAP. The initial estimate of expected credit losses for a PCD would be recognized through an ALLL with an offset to the cost basis of the related financial asset at acquisition ( i.e., increases the cost basis of the asset, the “gross-up” approach with no impact to net income at initial recognition). Subsequently, the accounting will follow the applicable CECL or AFS debt security impairment model with all adjustments of the ALLL recognized through earnings. Beneficial interests classified as held-to-maturity or AFS will need to apply the PCD model if the beneficial interest meets the definition of PCD or if there is a significant difference between contractual and expected cash flows at initial recognition. This guidance also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the ALLL. In addition, public business entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination (i .e., by vintage year). 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). A prospective transition approach is required for debt securities for which an OTTI had been recognized before the effective date. A prospective transition approach should be used for PCD assets where upon adoption; the amortized cost basis should be adjusted to reflect the addition of the allowance for credit losses. The ASU will be effective in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption of the guidance will be permitted for all entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. CIT is currently evaluating the effect of this ASU on its financial statements and disclosures. Statement of Cash Flows FASB issued ASU 2016-15 , Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments . The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The following issues are addressed: " Issue 1 - Debt prepayment or debt extinguishment costs – Cash payments for debt prepayment or debt extinguishment costs should be classified as cash outflows for financing activities. " Issue 2 - Settlement of zero-coupon debt instruments – Cash payments for the settlement of zero-coupon debt instruments, including other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, should be classified as cash outflows for operating activities for the portion attributable to interest and as cash outflows for financing activities for the portion attributable to principal. " Issue 3 - Contingent consideration payments made after a business combination– Cash payments made soon after an acquisition’s consummation date (i.e., approximately three months or less) should be classified as cash outflows for investing activities. Payments made thereafter should be classified as cash outflows for financing activities up to the amount of the original contingent consideration liability. Payments made in excess of the amount of the original contingent consideration liability should be classified as cash outflows for operating activities. " Issue 4 - Proceeds from the settlement of insurance claim – Cash payments received from the settlement of insurance claims should be classified on the basis of the nature of the loss (or each component loss, if an entity receives a lump-sum settlement). " Issue 5 - Proceeds from the settlement of corporate-owned life insurance (“COLI”) policies, including bank-owned life insurance (“BOLI”) policies – Cash payments received from the settlement of COLI or BOLI policies should be classified as cash inflows from investing activities. Cash payments for premiums on COLI or BOLI policies may be classified as cash outflows for investing, operating, or a combination of investing and operating activities. " Issue 6 - Distributions received from equity method investments – The guidance provides an accounting policy election for classifying distributions received from equity method investments. Such amounts can be classified using a 1) cumulative earnings approach, or 2) nature of distribution (or “look-through”) approach. Under the cumulative earnings approach, an investor would compare the distributions received to its cumulative equity-method earnings since inception. Any distributions received up to the amount of cumulative equity earnings would be considered a return on investment and classified in operating activities. Any excess distributions would be considered a return of investment and classified in investing activities. Alternatively, an investor can choose to classify the distributions based on the nature of activities of the investee that generated the distribution. If the necessary information is subsequently not available for an investee to determine the nature of the activities, the entity should use the cumulative earnings approach for that investee and report a change in accounting principle on a retrospective basis. " Issue 7 - Beneficial interests in securitization transactions – A transferor’s beneficial interest obtained in a securitization of financial assets should be disclosed as a noncash activity. Cash receipts from a transferor’s beneficial interests in securitized trade receivables should be classified as cash inflows from investing activities. " Issue 8 - Separately identifiable cash flows and application of the predominance principle – Entities should use reasonable judgment to separate cash flows. In the absence of specific guidance, an entity should classify each separately identifiable cash source and use on the basis of the nature of the underlying cash flows. For cash flows with aspects of more than one class that cannot be separated, the classification should be based on the activity that is likely to be the predominant source or use of cash flow. The ASU will be effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. CIT is currently evaluating the impact of the above eight issues identified on its cash flow statement and related disclosures. |
Acquisition And Disposition A28
Acquisition And Disposition Activities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Acquisition And Disposition Activities [Abstract] | |
Condensed Balance Sheet, Statement Of Operations, And Cash Flows From Discontinued Operations | Condensed Balance Sheet of Discontinued Operation (dollars in millions) September 30, 2016 December 31, 2015 Net Finance Receivables (1) $ 393.0 $ 449.5 Other assets (2) 59.9 51.0 Assets of discontinued operations $ 452.9 $ 500.5 Secured borrowings (1) $ 386.6 $ 440.6 Other liabilities (3) 541.2 255.6 Liabilities of discontinued operations $ 927.8 $ 696.2 (1) Net finance receivables include $385.6 million and $440.2 million of securitized balances at September 30, 2016 and December 31, 2015, respectively, and $7.4 million and $9.3 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. (3) Other liabilities include contingent liabilities, reverse mortgage servicing liabilities and other accrued liabilities. The results from discontinued operations for the quarter and nine months ended September 30, 2016 and 2015 are presented below. The three-month and nine-month results for 2016 include full period results while the three-month and nine-month results for 2015 include only the results of discontinued operations for a partial period in the third quarter of 2015 in connection with the OneWest Transaction for Financial Freedom. Condensed Statements of Operations (dollars in millions) Quarters Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Interest income (1) $ 2.8 $ 2.2 $ 8.7 $ 2.2 Interest expense (1) (2.5) (2.3) (8.1) (2.3) Other income (loss) (2) (10.3) 6.1 7.3 6.1 Operating expenses (3) (14.9) (11.8) (276.6) (11.8) Loss from discontinued operation before benefit for income taxes (24.9) (5.8) (268.7) (5.8) Benefit for income taxes (4) 9.3 2.1 81.3 2.1 Loss from discontinued operation, net of taxes $ (15.6) $ (3.7) $ (187.4) $ (3.7) (1) Includes amortization for the premium associated with the HECM loans and related secured borrowings. (2) For the quarter ended September 30, 2016, other income (loss) includes a $19 million impairment charge to the servicing liability related to our reverse mortgage servicing operations. (3) For the quarter and nine months ended September 30, 2016 , operating expense is comprised of $5.1 million and $11 million, respectively, in salaries and benefits, $6.6 million and $16.1 million, respectively, in professional and legal services, and $3.2 million and $10.5 million, respectively, for other expenses such as data processing, premises and equipment, and miscellaneous charges. In addition, operating expenses for the nine months ended September 30, 2016 included a one-time increase to the servicing-related reserve of approximately $230 million due to a change in estimate , which is net of a corresponding increase in the indemnification receivable from the FDIC . For the quarter and nine months ended September 30, 2015, operating expense is comprised of $4.4 million in salaries and benefits, $2.8 million in professional services and $4.6 million for other expenses such as data processing, premises and equipment, legal settlement, and miscellaneous charges. (4) For the quarter and nine months ended September 30, 2016, the Company’s tax rate for discontinued operations is 38% and 30% , respectively. For the quarter and nine months ended September 30, 2015, the Company’s tax rate for discontinued operations is 36.5% . Condensed Statement of Cash Flows (dollars in millions) Nine Months Ended September 30, 2016 September 30, 2015 Net cash flows used for operations $ (32.0) $ (1.4) Net cash flows provided by investing activities 69.8 9.8 |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Loans [Abstract] | |
Schedule Of Finance Receivables By Product | Finance Receivables by Product (dollars in millions) September 30, December 31, 2016 2015 Commercial loans $ 20,341.8 $ 21,380.9 Direct financing leases and leveraged leases 2,833.7 3,427.5 Total commercial 23,175.5 24,808.4 Consumer loans 6,742.7 6,863.3 Total finance receivables 29,918.2 31,671.7 Finance receivables held for sale (1) 2,361.7 1,985.1 Finance receivables and held for sale receivables (1) $ 32,279.9 $ 33,656.8 (1) Assets held for sale on the Balance Sheet at September 30, 2016 includes finance receivables and operating lease equipment primarily related to portfolios in Canada, China, Business Air and Commercial Air . As discussed in subsequent tables, since the Company manages the credit risk and collections of finance receivables held for sale consistently with its finance receivables held for investment, the aggregate amount is presented in this table. |
Schedule Of Finance Receivables By Segment, Based On Obligor Location | Finance Receivables (dollars in millions) September 30, 2016 December 31, 2015 Domestic Foreign Total Domestic Foreign Total Transportation Finance $ 317.3 $ 1,906.9 $ 2,224.2 $ 815.1 $ 2,727.0 $ 3,542.1 Commercial Banking 20,265.6 299.1 20,564.7 20,607.9 321.3 20,929.2 Consumer and Community Banking (1) 7,129.3 – 7,129.3 7,200.4 – 7,200.4 Total $ 27,712.2 $ 2,206.0 $ 29,918.2 $ 28,623.4 $ 3,048.3 $ 31,671.7 (1) The Consumer and Community 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 | Components of Net Investment in Finance Receivables (dollars in millions) (1) September 30, December 31, 2016 2015 Unearned income $ (715.7) $ (870.4) Unamortized premiums / (discounts) (39.1) (34.0) Accretable yield on Purchased Credit-Impaired ("PCI") loans 1,256.8 1,294.0 Net unamortized deferred costs and (fees) (1) 49.0 42.9 (1) Balance relates to Commercial Banking and Transportation Finance segments. |
Finance And Held-For-Sale Receivables - By Risk Rating | Commercial Finance and Held for Sale Receivables – Risk Rating by Class / Segment (dollars in millions) Grade: Pass Special Mention Classified- accruing Classified- non-accrual PCI Loans Total September 30, 2016 Transportation Finance Aerospace $ 1,301.6 $ 231.5 $ 53.0 $ 5.0 $ – $ 1,591.1 Rail 103.6 1.4 1.3 – – 106.3 Maritime Finance 845.6 170.3 496.1 49.4 – 1,561.4 Total Transportation 2,250.8 403.2 550.4 54.4 – 3,258.8 Commercial Banking Commercial Finance 7,049.5 751.9 602.4 131.1 45.1 8,580.0 Real Estate Finance 5,060.5 178.0 92.5 6.9 76.0 5,413.9 Business Capital 6,055.2 533.0 272.4 41.9 – 6,902.5 Total Commercial Banking 18,165.2 1,462.9 967.3 179.9 121.1 20,896.4 Consumer & Community Banking Other Consumer Banking (1) 348.5 13.5 20.2 0.1 4.3 386.6 Non- Strategic Portfolios 814.4 52.5 46.8 40.0 – 953.7 Total $ 21,578.9 $ 1,932.1 $ 1,584.7 $ 274.4 $ 125.4 $ 25,495.5 December 31, 2015 Transportation Finance Aerospace $ 1,635.7 $ 65.0 $ 46.2 $ 15.4 $ – $ 1,762.3 Rail 118.9 1.4 0.6 – – 120.9 Maritime Finance 1,309.0 162.0 207.4 – – 1,678.4 Total Transportation Finance 3,063.6 228.4 254.2 15.4 – 3,561.6 Commercial Banking Commercial Finance 8,215.0 626.4 389.9 131.5 69.4 9,432.2 Real Estate Finance 5,143.2 97.6 18.6 3.6 94.6 5,357.6 Business Capital 5,649.0 517.0 320.1 56.0 – 6,542.1 Total Commercial Banking 19,007.2 1,241.0 728.6 191.1 164.0 21,331.9 Consumer & Community Banking Other Consumer Banking (1) 300.6 12.1 18.3 – 5.3 336.3 Non- Strategic Portfolios 1,286.3 115.4 60.1 56.0 – 1,517.8 Total $ 23,657.7 $ 1,596.9 $ 1,061.2 $ 262.5 $ 169.3 $ 26,747.6 (1) The Consumer and Community 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. |
Schedule Of Consumer Loan LTV Distributions | Consumer Loan LTV Distribution (dollars in millions) Single Family Residential Reverse Mortgage Covered Loans Non-covered Loans Total Single Family Covered Loans Non-covered loans Total Reverse Total Consumer LTV Range Non- PCI PCI Non- PCI PCI Residential Non- PCI Non- PCI PCI Mortgages Loans September 30, 2016 Greater than 125% $ 1.6 $ 296.0 $ 13.7 $ – $ 311.3 $ 0.6 $ 7.6 $ 33.0 $ 41.2 $ 352.5 101% - 125% 3.2 489.8 14.3 – 507.3 1.1 11.7 10.2 23.0 530.3 80% - 100% 281.7 577.7 34.3 – 893.7 26.5 40.8 8.2 75.5 969.2 Less than 80% 1,559.0 871.2 1,720.0 9.1 4,159.3 415.4 304.2 9.6 729.2 4,888.5 Not Applicable (1) – – 2.2 2.2 – – – – 2.2 Total $ 1,845.5 $ 2,234.7 $ 1,784.5 $ 9.1 $ 5,873.8 $ 443.6 $ 364.3 $ 61.0 $ 868.9 $ 6,742.7 December 31, 2015 Greater than 125% $ 1.1 $ 395.6 $ 0.8 $ 15.7 $ 413.2 $ 1.0 $ 3.9 $ 39.3 $ 44.2 $ 457.4 101% - 125% 3.6 619.9 0.2 14.9 638.6 2.5 6.5 17.0 26.0 664.6 80% - 100% 449.3 552.1 14.3 11.4 1,027.1 26.5 37.4 7.0 70.9 1,098.0 Less than 80% 1,621.0 829.3 1,416.1 12.9 3,879.3 432.6 312.5 11.1 756.2 4,635.5 Not Applicable (1) – – 7.8 – 7.8 – – – – 7.8 Total $ 2,075.0 $ 2,396.9 $ 1,439.2 $ 54.9 $ 5,966.0 $ 462.6 $ 360.3 $ 74.4 $ 897.3 $ 6,863.3 (1) Certain Consumer Loans do not have LTV’s, including the Credit Card portfolio. |
Schedule Of Covered Loans By Segment | Covered Loans (dollars in millions) September 30, 2016 December 31, 2015 Consumer and Community Banking loans HFI at carrying value PCI $ 2,234.7 $ 2,396.9 Non-PCI 2,289.1 2,537.6 Total $ 4,523.8 $ 4,934.5 |
Finance And Held For Sale Receivables - Delinquency Status | Past Due Finance and Held for Sale Receivables (dollars in millions) Past Due 30–59 Days 60–89 Days 90 Days or Total PCI Loans Past Due Past Due Greater Past Due Current (1) (2) Total Finance Receivables September 30, 2016 Transportation Finance Aerospace $ – $ 0.3 $ 0.2 $ 0.5 $ 1,590.6 $ – $ 1,591.1 Rail 1.4 0.7 1.9 4.0 102.3 – 106.3 Maritime Finance – – – – 1,561.4 – 1,561.4 Total Transportation Finance 1.4 1.0 2.1 4.5 3,254.3 – 3,258.8 Commercial Banking Commercial Finance – 34.9 32.1 67.0 8,467.9 45.1 8,580.0 Real Estate Finance – 0.1 – 0.1 5,337.8 76.0 5,413.9 Business Capital 93.5 24.4 13.0 130.9 6,771.6 – 6,902.5 Total Commercial Banking 93.5 59.4 45.1 198.0 20,577.3 121.1 20,896.4 Consumer & Community Banking Legacy Consumer Mortgages 24.4 7.2 33.5 65.1 2,670.9 2,304.8 5,040.8 Other Consumer Banking 6.7 – 1.0 7.7 2,118.2 4.3 2,130.2 Total Consumer & Community Banking 31.1 7.2 34.5 72.8 4,789.1 2,309.1 7,171.0 Non-Strategic Portfolios 6.9 3.5 15.0 25.4 928.3 – 953.7 Total $ 132.9 $ 71.1 $ 96.7 $ 300.7 $ 29,549.0 $ 2,430.2 $ 32,279.9 December 31, 2015 Transportation Finance Aerospace $ 1.4 $ – $ 15.4 $ 16.8 $ 1,745.5 $ – $ 1,762.3 Rail 8.5 2.0 2.1 12.6 108.3 – 120.9 Maritime Finance – – – – 1,678.4 – 1,678.4 Total Transportation Finance 9.9 2.0 17.5 29.4 3,532.2 – 3,561.6 Commercial Banking Commercial Finance – – 20.5 20.5 9,342.3 69.4 9,432.2 Real Estate Finance 1.9 – 0.7 2.6 5,260.4 94.6 5,357.6 Business Capital 131.1 32.8 26.8 190.7 6,351.4 – 6,542.1 Total Commercial Banking 133.0 32.8 48.0 213.8 20,954.1 164.0 21,331.9 Consumer & Community Banking Legacy Consumer Mortgages 15.8 1.7 4.1 21.6 2,923.8 2,526.2 5,471.6 Other Consumer Banking 2.7 0.3 0.4 3.4 1,765.2 5.3 1,773.9 Total Consumer & Community Banking 18.5 2.0 4.5 25.0 4,689.0 2,531.5 7,245.5 Non-Strategic Portfolios 18.7 22.1 33.7 74.5 1,443.3 – 1,517.8 Total $ 180.1 $ 58.9 $ 103.7 $ 342.7 $ 30,618.6 $ 2,695.5 $ 33,656.8 (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 | Finance Receivables on Non-Accrual Status (dollars in millions) September 30, 2016 December 31, 2015 Held for Investment Held for Sale Total Held for Investment Held for Sale Total Transportation Finance Aerospace $ – $ 5.0 $ 5.0 $ 15.4 $ – $ 15.4 Maritime Finance 49.4 – 49.4 – – – Total Transportation Finance 49.4 5.0 54.4 15.4 – 15.4 Commercial Banking Commercial Finance 117.9 13.2 131.1 120.5 11.0 131.5 Real Estate Finance 6.9 – 6.9 3.6 – 3.6 Business Capital 41.9 – 41.9 56.0 – 56.0 Total Commercial Banking 166.7 13.2 179.9 180.1 11.0 191.1 Consumer & Community Banking Legacy Consumer Mortgages 13.9 – 13.9 4.2 0.6 4.8 Other Consumer Banking 0.3 – 0.3 – 0.4 0.4 Total Consumer & Community Banking 14.2 – 14.2 4.2 1.0 5.2 Non-Strategic Portfolios – 40.0 40.0 – 56.0 56.0 Total $ 230.3 $ 58.2 $ 288.5 $ 199.7 $ 68.0 $ 267.7 OREO and repossessed assets 88.7 127.3 Total non-performing assets $ 377.2 $ 395.0 Commercial loans past due 90 days or more accruing $ 5.2 $ 15.6 Consumer loans past due 90 days or more accruing 24.4 0.2 Total Accruing loans past due 90 days or more $ 29.6 $ 15.8 |
Schedule Of Loans In Process Of Foreclosure | Loans in Process of Foreclosure (dollars in millions) (dollars in millions) September 30, 2016 December 31, 2015 PCI $ 221.6 $ 320.0 Non-PCI 109.6 71.0 Loans in process of foreclosure $ 331.2 $ 391.0 OREO $ 83.5 $ 118.0 |
Impaired Loans | Impaired Loans (dollars in millions) Average Recorded Investment Unpaid Three Months Ended Nine Months Ended Recorded Principal Related September 30, September 30, Investment Balance Allowance 2016 2015 2016 2015 September 30, 2016 With no related allowance recorded: Transportation Finance Aerospace $ – $ – $ – $ – $ – $ 0.2 $ – Commercial Banking Commercial Finance 17.5 34.0 – 13.6 7.7 13.2 4.3 Business Capital 2.0 6.1 – 5.5 5.6 6.2 5.8 Real Estate Finance 0.8 0.8 – 0.8 1.7 1.5 0.8 Non-Strategic Portfolios – – – – 6.1 – 9.2 With an allowance recorded: Transportation Finance Aerospace – – – – 4.7 3.8 2.4 Maritime Finance 49.4 49.4 6.8 24.7 – 12.3 – Commercial Banking Commercial Finance 100.4 107.7 23.8 113.6 45.5 117.1 40.8 Business Capital 4.0 4.0 2.8 5.9 8.6 8.6 4.3 Real Estate Finance 3.1 3.1 0.4 3.1 – 2.4 – Non-Strategic Portfolios – – – – 11.1 – 9.1 Total Impaired Loans (1) 177.2 205.1 33.8 167.2 91.0 165.3 76.7 Total Loans Impaired at Acquisition Date and Convenience Date (2) 2,430.2 3,556.9 13.8 2,459.3 1,421.6 2,543.8 711.1 Total $ 2,607.4 $ 3,762.0 $ 47.6 $ 2,626.5 $ 1,512.6 $ 2,709.1 $ 787.8 Unpaid Average Recorded Principal Related Recorded Investment Balance Allowance Investment (3) December 31, 2015 With no related allowance recorded: Commercial Banking Commercial Finance $ 15.4 $ 22.8 $ – $ 6.5 Business Capital 6.3 9.7 – 5.9 Real Estate Finance 0.2 0.8 – 0.7 Non-Strategic Portfolios – – – 7.3 With an allowance recorded: Transportation Finance Aerospace 15.4 15.4 0.4 5.0 Commercial Banking Commercial Finance 102.6 112.1 22.7 53.2 Business Capital 9.7 11.7 4.7 5.4 Non-Strategic Portfolios – – – 7.3 Total Impaired Loans (1) 149.6 172.5 27.8 91.3 Total Loans Impaired at Acquisition Date and Convenience Date (2) 2,695.5 3,977.3 4.9 1,108.0 Total $ 2,845.1 $ 4,149.8 $ 32.7 $ 1,199.3 (1) I nterest income recorded for the three and nine months ended September 30, 2016 and the year ended December 31, 2015 while the loans were impaired were $0.5 million, $1.4 million and $1. 5 million of which $0.2 million, $0.6 million and $0.5 million was interest recognized using cash-basis method of accounting, respectively. Interest income recorded for the three and nine months ended September 30, 2015 while the loans were impaired were $0.2 million and $0.8 million of which $0.1 million was interest recognized using cash-basis method of accounting . (2) Details of finance receivables that were identified as impaired at the Acquisition Date are presented under Loans Acquired with Deteriorated Credit Quality . (3) Average recorded investment for the year ended December 31, 2015. |
Purchased Credit Impaired Loans With Deteriorated Credit Quality | Purchased Credit Impaired Loans (1) (dollars in millions) (1) September 30, 2016 Unpaid Principal Balance Carrying Value Allowance for Loan Losses Commercial Banking Commercial Finance $ 74.9 $ 45.1 $ 1.8 Real Estate Finance 122.1 76.0 3.8 Consumer & Community Banking Other Consumer Banking 5.6 4.3 – Legacy Consumer Mortgages 3,354.3 2,304.8 8.2 $ 3,556.9 $ 2,430.2 $ 13.8 December 31, 2015 Unpaid Principal Balance Carrying Value Allowance for Loan Losses Commercial Banking Commercial Finance $ 115.5 $ 69.4 $ 2.5 Real Estate Finance 161.1 94.6 0.6 Consumer & Community Banking Other Consumer Banking 6.8 5.3 – Legacy Consumer Mortgages 3,693.9 2,526.2 1.8 $ 3,977.3 $ 2,695.5 $ 4.9 (1) PCI loans from prior transactions were not significant and are not included. |
Summary Of Commercial PCI Loans | September 30, 2016 (dollars in millions) Non- criticized Criticized Total Commercial Finance $ 5.2 $ 39.9 $ 45.1 Real Estate Finance 35.9 40.1 76.0 Total $ 41.1 $ 80.0 $ 121.1 December 31, 2015 Non- criticized Criticized Total Commercial Finance $ 5.3 $ 64.1 $ 69.4 Real Estate Finance 33.2 61.4 94.6 Total $ 38.5 $ 125.5 $ 164.0 |
Schedule Of Changes To The Accretable Yield For PCI Loans | (dollars in millions) September 30, 2016 Quarter Ended Nine Months Ended Beginning Balance $ 1,274.8 $ 1,294.0 Accretion into interest income (48.4) (149.3) Reclassification from non-accretable difference 35.8 146.2 Disposals and Other (5.4) (34.1) Balance at September 30, 2016 $ 1,256.8 $ 1,256.8 Quarter and Nine Months Ended September 30, 2015 Balance at August 3, 2015 (1) $ 1,254.8 Accretion into interest income (32.1) Reclassification from non-accretable difference 0.1 Disposals and Other (5.9) Balance at September 30, 2015 $ 1,216.9 (1) Balance at August 3, 2015 reflects reclassification of certain PCI loans and measurement period adjustments. Refer to the Company’s December 31, 2015 Form 10-K for further discussion. |
Estimated Future Advances To Reverse Mortgages | Future Advances (dollars in millions) Year Ending: 2016 $ 3.7 2017 13.4 2018 11.2 2019 9.3 2020 7.7 Years 2021 - 2025 21.6 Years 2026 - 2030 7.0 Years 2031 - 2035 1.9 Thereafter 0.5 Total (1), (2) $ 76.3 (1) This table does not take into consideration cash inflows including payments from mortgagors or payoffs based on contractual terms. (2) This table includes the reverse mortgages supported by the Company as a result of the IndyMac loss-share agreements with the FDIC. As of September 30, 2016 , the Company is responsible for funding up to a remaining $54 million of the total amount. Refer to Note 5-Indemnification Asset for more information on this agreement and the Company’s responsibilities toward this reverse mortgage portfolio. |
Allowance For Loan Losses (Tabl
Allowance For Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 Finance Receivables (dollars in millions) Transportation Finance Commercial Banking Consumer & Community Banking Non-Strategic Portfolios Corporate and Other Total Quarter Ended September 30, 2016 Balance - June 30, 2016 $ 51.3 327.6 $ 20.5 $ – $ – $ 399.4 Provision for credit losses 5.5 39.2 1.6 (0.1) – 46.2 Other (1) – (2.8) 2.3 – – (0.5) Gross charge-offs (2) (2.1) (27.7) (0.7) – – (30.5) Recoveries – 6.2 0.8 0.1 – 7.1 Balance - September 30, 2016 $ 54.7 $ 342.5 $ 24.5 $ – $ – $ 421.7 Nine Months Ended September 30, 2016 Balance - December 31, 2015 $ 39.4 $ 310.5 $ 10.3 $ – $ – $ 360.2 Provision for credit losses 43.8 124.1 5.8 (0.1) – 173.6 Other (1) (0.2) (4.1) 7.9 – 3.6 Gross charge-offs (2) (28.3) (101.5) (1.9) – – (131.7) Recoveries – 13.5 2.4 0.1 – 16.0 Balance - September 30, 2016 $ 54.7 $ 342.5 $ 24.5 $ – $ – $ 421.7 Allowance balance at September 30, 2016 Loans individually evaluated for impairment $ 6.8 $ 27.0 $ – $ – $ – $ 33.8 Loans collectively evaluated for impairment 47.9 309.9 16.3 – – 374.1 Loans acquired with deteriorated credit quality (3) – 5.6 8.2 – – 13.8 Allowance for loan losses $ 54.7 $ 342.5 $ 24.5 $ – $ – $ 421.7 Other reserves (1) $ 0.4 $ 47.1 $ 0.2 $ – $ – $ 47.7 Finance receivables at September 30, 2016 Loans individually evaluated for impairment $ 49.4 $ 127.8 $ – $ – $ – $ 177.2 Loans collectively evaluated for impairment 2,174.8 20,315.8 4,820.2 – – 27,310.8 Loans acquired with deteriorated credit quality (3) – 121.1 2,309.1 – – 2,430.2 Ending balance $ 2,224.2 $ 20,564.7 $ 7,129.3 $ – $ – $ 29,918.2 Percent of loans to total loans 7.4% 68.8% 23.8% 0% 0% 100% Transportation Finance Commercial Banking Consumer & Community Banking Non-Strategic Portfolios Corporate and Other Total Quarter Ended September 30, 2015 Balance - June 30, 2015 $ 33.4 $ 277.6 $ – $ 39.9 $ – $ 350.9 Provision for credit losses (1.6) 43.2 5.1 3.2 – 49.9 Other (1) 0.1 (3.1) – (1.5) – (4.5) Gross charge-offs (2) (0.1) (22.8) (1.6) (42.9) – (67.4) Recoveries – 4.3 0.5 1.3 – 6.1 Balance - September 30, 2015 $ 31.8 $ 299.2 $ 4.0 $ 0.0 $ – $ 335.0 Nine Months Ended September 30, 2015 Balance - December 31, 2014 $ 26.5 $ 282.5 $ – $ 37.4 $ – $ 346.4 Provision for credit losses 5.9 85.6 5.1 6.3 – 102.9 Other (1) 0.1 (5.9) – (2.8) – (8.6) Gross charge-offs (2) (0.8) (75.2) (1.6) (50.6) – (128.2) Recoveries 0.1 12.2 0.5 9.7 – 22.5 Balance - September 30, 2015 $ 31.8 $ 299.2 $ 4.0 $ – $ – $ 335.0 Allowance balance at September 30, 2015 Loans individually evaluated for impairment $ 0.9 $ 17.4 $ – $ – $ – $ 18.3 Loans collectively evaluated for impairment 30.9 281.8 3.6 – – 316.3 Loans acquired with deteriorated credit quality (3) – – 0.4 – – 0.4 Allowance for loan losses $ 31.8 $ 299.2 $ 4.0 $ – $ – $ 335.0 Other reserves (1) $ – $ 40.6 $ – $ 0.2 $ – $ 40.8 Finance receivables at September 30, 2015 Loans individually evaluated for impairment $ 4.7 $ 97.5 $ – $ – $ – $ 102.2 Loans collectively evaluated for impairment 3,300.8 21,553.3 4,606.8 – – 29,460.9 Loans acquired with deteriorated credit quality (3) – 198.7 2,644.4 – – 2,843.1 Ending balance $ 3,305.5 $ 21,849.5 $ 7,251.2 $ – $ – $ 32,406.2 Percentage of loans to total loans 10.2% 67.4% 22.4% 0% 0% 100% (1) “Other reserves” represents additional 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 changes relating to loans that were charged off and reimbursed by the FDIC under the indemnification provided by the FDIC, sales and foreign currency translations. (2) Gross charge-offs of amounts specifically reserved in prior periods that were charged directly to the Allowance for loan losses included $ 4 million and $27 million , for the quarter and nine months ended September 30, 2016, respectively , and $12 million and $17 million for the quarter and nine months ended September 30, 2015 . The current quarter charge-offs related to Commercial Banking for all periods . The prior year quarter charge-offs related to Commercial Banking. The prior year to date charge-offs related to Commercial Banking, and Non-Strategic Portfolios. (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) | 9 Months Ended |
Sep. 30, 2016 | |
Indemnification Assets [Line Items] | |
Carrying Value Of Recognized Indemnification Assets And Related Receivables/Payables | Indemnification Assets (dollars in millions) September 30, 2016 IndyMac La Jolla Transaction Transaction Total Loan indemnification (1) $ 249.0 $ – $ 249.0 Reverse mortgage indemnification 10.7 – 10.7 Agency claims indemnification (2) 102.5 – 102.5 Total $ 362.2 $ – $ 362.2 Receivable from (Payable to) the FDIC $ 5.5 $ (1.5) $ 4.0 December 31, 2015 IndyMac La Jolla Transaction Transaction Total Loan indemnification (1) $ 338.6 $ 0.3 $ 338.9 Reverse mortgage indemnification 10.3 – 10.3 Agency claims indemnification (2) 65.6 – 65.6 Total $ 414.5 $ 0.3 $ 414.8 Receivable from (Payable to) the FDIC $ 18.6 $ (1.9) $ 16.7 (1) As of September 30, 2016, the carrying value of the IndyM ac loan indemnification decreased by $89.6 million from December 31, 2015, which is comprised of $69.1 million in claim submissions filed with the FDIC during the period and $20.5 million in other (yield and provision for credit losses adjustments). (2) As of September 30, 2016, the carrying value of the IndyM ac agency claims indemnification increased by $36.9 million from December 31, 2015 , which is primarily attributable to an increase in the amount of servicing-related obligations covered by the loss share agreement related to reverse mortgage loans. |
IndyMac Transaction [Member] | |
Indemnification Assets [Line Items] | |
Submission Of Qualifying Losses For Reimbursement From FDIC | Submission of Qualifying Losses for Reimbursement (dollars in millions) September 30, 2016 December 31, 2015 Unpaid principal balance $ 3,969.0 $ 4,372.8 Cumulative losses incurred 3,717.8 3,623.4 Cumulative claims 3,710.3 3,608.4 Cumulative reimbursement 884.8 802.6 |
First Federal Transaction [Member] | |
Indemnification Assets [Line Items] | |
Submission Of Qualifying Losses For Reimbursement From FDIC | Submission of Qualifying Losses for Reimbursement (dollars in millions) September 30, 2016 SFR Commercial (1) Total Unpaid principal balance $ 1,302.3 $ – $ 1,302.3 Cumulative losses incurred 415.1 9.0 424.1 Cumulative claims 414.8 9.0 423.8 Cumulative reimbursement - – - December 31, 2015 SFR Commercial (1) Total Unpaid principal balance $ 1,456.8 $ – $ 1,456.8 Cumulative losses incurred 408.5 9.0 417.5 Cumulative claims 407.2 9.0 416.2 Cumulative reimbursement - - - (1) Due to the expiration of the loss share agreement covering commercial loans in December 2014, the outstanding unpaid principal balance eligible for reimbursement is zero . As provided by the loss share agreement, the loss recoveries for commercial loans extend for three years from expiration date (December 2017). As such, the cumulative losses incurred, claim submissions and reimbursements for commercial loans are reduced by the reported recoveries. |
La Jolla Transaction [Member] | |
Indemnification Assets [Line Items] | |
Submission Of Qualifying Losses For Reimbursement From FDIC | Submission of Qualifying Losses for Reimbursement (dollars in millions) September 30, 2016 SFR Commercial (1) Total Unpaid principal balance $ 73.0 $ – $ 73.0 Cumulative losses incurred 56.3 353.6 409.9 Cumulative claims 56.3 353.6 409.9 Cumulative reimbursement 45.0 282.9 327.9 December 31, 2015 SFR Commercial (1) Total Unpaid principal balance $ 89.3 $ – $ 89.3 Cumulative losses incurred 56.2 359.5 415.7 Cumulative claims 56.2 359.5 415.7 Cumulative reimbursement 45.0 287.6 332.6 (1) Due to the expiration of the loss share agreement covering commercial loans in March 2015, the outstanding unpaid principal balance eligible for reimbursement is zero . As provided by the loss share agreement, the loss recoveries for commercial loans extend for three years from expiration date (March 2018). As such, the cumulative losses incurred, claim submissions and reimbursements for commercial loans are reduced by the reported recoveries. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Gain (Loss) on Investments [Line Items] | |
Schedule Of Investment Securities | Investment Securities (dollars in millions) September 30, December 31, 2016 2015 Available-for-sale securities Debt securities $ 2,729.2 $ 2,007.8 Equity securities 34.8 14.3 Held-to-maturity securities Debt securities (1) 254.4 300.1 Securities carried at fair value with changes recorded in net income Debt securities 301.3 339.7 Non-marketable investments (2) 272.7 291.9 Total investment securities $ 3,592.4 $ 2,953.8 (1) Recorded at amortized cost. (2) Non-marketable investments include securities of the FRB and FHLB carried at cost of $253.7 million at September 30, 2016 and $263.5 million at December 31, 2015. 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 $19.0 million and $28.4 million at September 30, 2016 and December 31, 2015, respectively. |
Schedule Of Interest And Dividend Income | Interest and Dividend Income (dollars in millions) Quarters Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Interest income - investments $ 19.8 $ 4.5 $ 58.8 $ 11.9 Interest income - interest bearing deposits 9.5 15.0 26.7 24.2 Dividends - investments 3.2 4.0 9.6 5.0 Total interest and dividends $ 32.5 $ 23.5 $ 95.1 $ 41.1 |
Amortized Cost And Fair Value Of Securities Available-For-Sale | Securities AFS — Amortized Cost and Fair Value (dollars in millions) Gross Gross Amortized Unrealized Unrealized Fair September 30, 2016 Cost Gains Losses Value Debt securities AFS Mortgage-backed Securities U.S. government agency securities $ 838.3 $ 5.9 $ (0.2) $ 844.0 Non-agency securities 495.1 15.8 (0.5) 510.4 U.S. government agency obligations 874.9 0.2 (0.3) 874.8 U.S. Treasury Securities 99.7 0.3 – 100.0 Supranational and foreign government securities 400.0 – – 400.0 Total debt securities AFS 2,708.0 22.2 (1.0) 2,729.2 Equity securities AFS 34.7 0.3 (0.2) 34.8 Total securities AFS $ 2,742.7 $ 22.5 $ (1.2) $ 2,764.0 December 31, 2015 Debt securities AFS Mortgage-backed Securities U.S. government agency securities $ 148.4 $ – $ (0.9) $ 147.5 Non-agency securities 573.9 0.4 (7.2) 567.1 U.S. government agency obligations 996.8 – (3.7) 993.1 Supranational and foreign government securities 300.1 – – 300.1 Total debt securities AFS 2,019.2 0.4 (11.8) 2,007.8 Equity securities AFS 14.4 0.1 (0.2) 14.3 Total securities AFS $ 2,033.6 $ 0.5 $ (12.0) $ 2,022.1 |
Schedule Of Debt Securities AFS - Estimated Unrealized Losses | Securities AFS – Gross Unrealized Loss ( dollars in millions) September 30, 2016 Less than 12 months 12 months or greater Gross Gross Fair Unrealized Fair Unrealized Value Loss Value Loss Debt securities AFS Mortgage-backed securities U.S. government agency securities $ 33.0 $ (0.1) $ 11.0 $ (0.1) Non-agency securities 9.4 (0.1) 29.3 (0.4) U.S. government agency obligations 174.7 (0.3) – – Total debt securities AFS 217.1 (0.5) 40.3 (0.5) Equity securities AFS 20.3 (0.2) – – Total securities available-for-sale $ 237.4 $ (0.7) $ 40.3 $ (0.5) December 31, 2015 Less than 12 months 12 months or greater Gross Gross Fair Unrealized Fair Unrealized Value Loss Value Loss Debt securities AFS Mortgage-backed securities U.S. government agency securities $ 147.0 $ (0.9) $ – $ – Non-agency securities 495.5 (7.2) – – U.S. government agency obligations 943.0 (3.7) – – Total debt securities AFS 1,585.5 (11.8) – – Equity securities AFS 0.2 (0.2) – – Total securities available-for-sale $ 1,585.7 $ (12.0) $ – $ – |
Schedule Of Securities Carried At Fair Value With Changes Recorded In Net Income | Securities Carried at Fair Value with Changes Recorded in Net Income (dollars in millions) Gross Gross Amortized Unrealized Unrealized Fair September 30, 2016 Cost Gains Losses Value Mortgage-backed Securities - Non-agency $ 295.9 $ 6.1 $ (0.7) $ 301.3 Total securities held at fair value with changes recorded in net income $ 295.9 $ 6.1 $ (0.7) $ 301.3 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2015 Cost Gains Losses Value Mortgage-backed Securities - Non-agency $ 343.8 $ 0.3 $ (4.4) $ 339.7 Total securities held at fair value with changes recorded in net income $ 343.8 $ 0.3 $ (4.4) $ 339.7 |
Schedule Of Amortized Cost And Fair Value Maturities With Changes Recorded In Net Income | Securities Carried at Fair Value with changes Recorded in Net Income – Amortized Cost and Fair Value Maturities (dollars in millions) September 30, 2016 Amortized Fair Weighted Average Cost Value Yield Mortgage-backed securities - non agency securities After 5 but within 10 years $ 0.2 $ 0.3 37.26% Due after 10 years 295.7 301.0 4.89% Total $ 295.9 $ 301.3 4.92% |
Carrying Value And Fair Value Of Securities Held-To-Maturity | Debt Securities HTM — Carrying Value and Fair Value (dollars in millions) Gross Gross Carrying Unrealized Unrealized Fair Value Gains Losses Value September 30, 2016 Mortgage-backed securities U.S. government agency securities $ 120.6 $ 1.9 $ (0.4) $ 122.1 State and municipal 27.7 0.1 (0.8) 27.0 Foreign government 2.4 0.1 – 2.5 Corporate - foreign 103.7 6.0 – 109.7 Total debt securities held-to-maturity $ 254.4 $ 8.1 $ (1.2) $ 261.3 December 31, 2015 Mortgage-backed securities U.S. government agency securities $ 147.2 $ 1.1 $ (2.6) $ 145.7 State and municipal 37.1 – (1.6) 35.5 Foreign government 13.5 – – 13.5 Corporate - foreign 102.3 4.5 – 106.8 Total debt securities held-to-maturity $ 300.1 $ 5.6 $ (4.2) $ 301.5 |
Schedule Of Debt Securities Held-To-Maturity, Amortized Cost And Fair Value Maturities | Debt Securities HTM — Amortized Cost and Fair Value Maturities (dollars in millions) September 30, 2016 Amortized Fair Weighted Average Cost Value Yield Mortgage-backed securities - U.S. government agency securities After 5 but within 10 years $ 1.3 $ 1.3 2.22% Due after 10 years 119.3 120.8 2.26% Total 120.6 122.1 2.26% State and municipal Due within 1 year 0.5 0.5 2.09% After 1 but within 5 years 0.5 0.5 2.46% After 5 but within 10 years 0.5 0.5 2.70% Due after 10 years 26.2 25.5 2.30% Total 27.7 27.0 2.31% Foreign government Due within 1 year 2.4 2.5 2.43% Total 2.4 2.5 2.43% Corporate - Foreign securities After 1 but within 5 years 103.7 109.7 4.28% Total 103.7 109.7 4.28% Total debt securities held-to-maturity $ 254.4 $ 261.3 3.09% |
Schedule Of Debt Securities HTM - Estimated Unrealized Losses | Debt Securities HTM – Gross Unrealized Loss (dollars in millions) September 30, 2016 Less than 12 months 12 months or greater Gross Gross Fair Unrealized Fair Unrealized Value Loss Value Loss Mortgage-backed securities U.S. government agency securities $ – $ – $ 30.1 $ (0.4) State and municipal – – 22.0 (0.8) Total securities held-to-maturity $ – $ – $ 52.1 $ (1.2) December 31, 2015 Less than 12 months 12 months or greater Gross Gross Fair Unrealized Fair Unrealized Value Loss Value Loss Mortgage-backed securities U.S. government agency securities $ 62.2 $ (0.9) $ 40.7 $ (1.7) State and municipal 3.1 (0.1) 28.2 (1.5) Total securities held-to-maturity $ 65.3 $ (1.0) $ 68.9 $ (3.2) |
Available-For-Sale Securities [Member] | |
Gain (Loss) on Investments [Line Items] | |
Amortized Cost And Fair Value Of Debt Securities By Contractual Maturity Dates | Securities AFS – Maturities (dollars in millions) September 30, 2016 Amortized Fair Weighted Average Cost Value Yield Mortgage-backed securities - U.S. government agency securities Due after 10 years $ 838.3 $ 844.0 2.03% Total 838.3 844.0 2.03% Mortgage-backed securities - non agency securities After 5 but within 10 years 23.3 24.1 4.93% Due after 10 years 471.8 486.3 5.85% Total 495.1 510.4 5.81% U.S. government agency obligations After 1 but within 5 years 874.9 874.8 1.23% Total 874.9 874.8 1.23% U.S. Treasury Securities After 1 but within 5 years 99.7 100.0 0.93% Total 99.7 100.0 0.93% Supranational and foreign government securities Due within 1 year 400.0 400.0 0.31% Total 400.0 400.0 0.31% Total debt securities available-for-sale $ 2,708.0 $ 2,729.2 2.17% |
OneWest Bank [Member] | Mortgage-Backed Securities [Member] | |
Gain (Loss) on Investments [Line Items] | |
Changes In Accretable Yield For Purchased Credit-Impaired Securities | Changes in Accretable Yield (dollars in millions) Quarter Ended Nine Months Ended September 30, 2016 September 30, 2016 Beginning Balance $ 179.2 $ 189.0 Accretion into interest income (7.1) (22.3) Reclassifications from non-accretable difference 0.6 6.0 Balance at September 30, 2016 $ 172.7 $ 172.7 Quarter Ended Nine Months Ended September 30, 2015 September 30, 2015 Beginning Balance $ 298.4 $ 298.4 Accretion into interest income (8.2) (8.2) Balance at September 30, 2015 $ 290.2 $ 290.2 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Deposits [Abstract] | |
Schedule Of Deposits | Deposits (dollars in millions) September 30, December 31, 2016 2015 Deposits Outstanding $ 32,854.3 $ 32,782.2 Weighted average contractual interest rate 1.22% 1.26% Weighted average remaining number of days to maturity 685 days 864 days Nine Months Ended Year Ended September 30, December 31, 2016 2015 Daily average deposits for the period $ 32,771.4 $ 23,277.8 Maximum amount outstanding for the period 33,225.1 32,899.6 Weighted average contractual interest rate for the period 1.24% 1.45% |
Schedule Of Rates And Maturities Of Deposits | Deposits – Rates and Maturities (dollars in millions) September 30, 2016 Amount Average Rate Deposits – no stated maturity Non-interest-bearing checking $ 987.1 – Interest-bearing checking 3,074.8 0.55% Money market / sweeps (1) 6,334.9 0.82% Savings 4,325.5 0.88% Other 146.2 NM (2) Total checking and savings deposits 14,868.5 Certificates of deposit, remaining contractual maturity: Within one year 9,135.4 1.13% One to two years 2,689.4 1.44% Two to three years 1,797.8 2.20% Three to four years 2,150.9 2.24% Four to five years 783.7 2.41% Over five years 1,417.9 3.15% Total certificates of deposit 17,975.1 Premium / discount (0.7) Purchase accounting adjustments 11.4 Total Deposits $ 32,854.3 (1) Includes deposit sweep arrangements related to money market and healthcare savings accounts . (2) Not Meaningful – includes certain deposits such as escrow accounts, security deposits and other similar accounts. |
Schedule Of Certificates Of Deposit $100 Thousand Or More | Certificates of Deposit $100 Thousand or More (dollars in millions) September 30, December 31, 2016 2015 U.S. certificates of deposit: Three months or less $ 1,624.0 $ 1,476.5 After three months through six months 1,767.5 1,462.6 After six months through twelve months 3,482.0 2,687.2 After twelve months 7,823.0 9,245.8 Total U.S. certificates of deposit $100 thousand or more $ 14,696.5 $ 14,872.1 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Instrument [Line Items] | |
Schedule Of Long-Term Borrowings | Borrowings (dollars in millions) September 30, 2016 December 31, 2015 CIT Group Inc. Subsidiaries Total Total (1) Senior Unsecured $ 10,595.1 $ – $ 10,595.1 $ 10,636.3 Secured borrowings: Structured financings – 3,515.4 3,515.4 4,687.9 FHLB advances – 2,438.2 2,438.2 3,117.6 Total Borrowings $ 10,595.1 $ 5,953.6 $ 16,548.7 $ 18,441.8 (1) December 31, 2015 balances for Senior Unsecured and Structured Financing were adjusted to include deferred debt issuance costs of $41.4 million and $55.9 million, respectively, compared to balances presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, upon adoption and in accordance with the provision in ASU 2015-03. Previously these amounts were included in other assets. |
Schedule Of FHLB Advances | FHLB Advances with Pledged Assets Summary (dollars in millions) September 30, 2016 December 31, 2015 FHLB Advances Pledged Assets FHLB Advances Pledged Assets Total $ 2,438.2 $ 6,555.5 $ 3,117.6 $ 6,783.1 |
Schedule Of Secured Financings And Pledged Assets | Structured Financings and Pledged Assets Summary (1) (dollars in millions) September 30, 2016 December 31, 2015 Secured Borrowing Pledged Assets Secured Borrowing Pledged Assets Rail (2) $ 840.7 $ 1,303.7 $ 917.0 $ 1,336.1 Aerospace (2) 1,864.7 3,516.8 2,091.5 3,732.2 Subtotal - Transportation Finance 2,705.4 4,820.5 3,008.5 5,068.3 Commercial Finance – 0.2 – 0.2 Business Capital 659.6 2,255.1 1,128.6 2,434.1 Subtotal - Commercial Banking 659.6 2,255.3 1,128.6 2,434.3 Legacy Consumer Mortgages 0.4 0.4 – – Subtotal - Consumer & Community Banking 0.4 0.4 – – Non-Strategic Portfolios 150.0 249.3 550.8 712.5 Total $ 3,515.4 $ 7,325.5 $ 4,687.9 $ 8,215.1 (1) As part of our liquidity management strategy, the Company pledges assets to secure financing transactions (which include securitizations), and for other purposes as required or permitted by law while CIT Bank, N.A. also pledges assets to secure borrowings from the FHLB and FRB. (2) At September 30, 2016, the TRS related borrowings and pledged assets, respectively, of $1.1 billion and $1.7 billion were included in Transportation Finance. The TRS is described in Note 9 — Derivative Financial Instruments. |
Assets and Liabilities in Unconsolidated VIEs | Unconsolidated VIEs (dollars in millions) Unconsolidated VIEs Carrying Value Unconsolidated VIEs Carrying Value September 30, 2016 December 31, 2015 Partnership Partnership Securities Investment Securities Investment Agency securities(1) $ 964.6 $ – $ 294.5 $ – Non agency securities—Other servicer 811.6 – 906.8 – Tax credit equity investments – 115.6 – 125.0 Total Assets $ 1,776.2 $ 115.6 $ 1,201.3 $ 125.0 Commitments to tax credit investments $ – $ 7.3 $ – $ 15.7 Total Liabilities $ – $ 7.3 $ – $ 15.7 Maximum loss exposure(2) $ 1,776.2 $ 115.6 $ 1,201.3 $ 125.0 (1) In preparing the interim financial statements for the quarter ended September 30, 2016, the Company discovered and corrected an immaterial error impacting the disclosure of agency securities in the amount of $147.0 million as of December 31, 2015 (2) Maximum loss exposure to the unconsolidated VIEs excludes the liability for representations and warranties, corporate guarantees and also excludes servicing advances. |
Senior Unsecured Notes [Member] | |
Debt Instrument [Line Items] | |
Schedule Of Long-Term Borrowings | Senior Unsecured Notes (dollars in millions) Maturity Date Rate (%) Date of Issuance Par Value May 2017 5.000% May 2012 $ 1,208.7 August 2017 4.250% August 2012 1,725.8 March 2018 5.250% March 2012 1,465.0 April 2018 6.625% March 2011 695.0 February 2019 5.500% February 2012 1,750.0 February 2019 3.875% February 2014 1,000.0 May 2020 5.375% May 2012 750.0 August 2022 5.000% August 2012 1,250.0 August 2023 5.000% August 2013 750.0 Weighted average rate and total 5.02% $ 10,594.5 |
Derivative Financial Instrume35
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Financial Instruments [Abstract] | |
Fair And Notional Values Of Derivative Financial Instruments | Fair and Notional Values of Derivative Financial Instruments (1) (dollars in millions) September 30, 2016 December 31, 2015 Notional Asset Liability Notional Asset Liability Qualifying Hedges Amount Fair Value Fair Value Amount Fair Value Fair Value Foreign currency forward contracts – net investment hedges $ 775.2 $ 8.8 $ (2.1) $ 787.6 $ 45.5 $ (0.3) Total Qualifying Hedges 775.2 8.8 (2.1) 787.6 45.5 (0.3) Non-Qualifying Hedges Interest rate swaps (2) 5,064.8 104.2 (98.8) 4,645.7 45.1 (38.9) Written options 2,663.0 0.2 (0.2) 3,346.1 0.1 (2.5) Purchased options 2,049.1 0.2 (0.2) 2,342.5 2.2 (0.1) Foreign currency forward contracts 1,291.1 11.0 (5.7) 1,624.2 47.8 (6.6) Total Return Swap (TRS) 1,200.0 – (47.8) 1,152.8 – (54.9) Equity Warrants 1.0 0.1 – 1.0 0.3 – Interest Rate Lock Commitments 41.6 0.4 – 9.9 0.1 – Forward Sale Commitments on Agency MBS 24.0 – (0.1) – – – Credit derivatives 261.3 – (0.5) 37.6 – (0.3) Total Non-qualifying Hedges 12,595.9 116.1 (153.3) 13,159.8 95.6 (103.3) Total Hedges $ 13,371.1 $ 124.9 $ (155.4) $ 13,947.4 $ 141.1 $ (103.6) (1) Presented on a gross basis . (2) Fair value balances include accrued interest. |
Offsetting Of Derivative Assets And Liabilities | Offsetting of Derivative Assets and Liabilities (dollars in millions) 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 (1) Cash Collateral Pledged/ (Received) (1)(2) Net Amount September 30, 2016 Derivative assets $ 124.9 $ – $ 124.9 $ (6.3) $ (11.9) $ 106.7 Derivative liabilities (155.4) – (155.4) 6.3 93.3 (55.8) December 31, 2015 Derivative assets $ 141.1 $ – $ 141.1 $ (9.7) $ (82.7) $ 48.7 Derivative liabilities (103.6) – (103.6) 9.7 31.8 (62.1) (1) 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 . (2) Collateral pledged or received is included in Other assets or Other liabilities, respectively. |
Derivative Instrument Gains And Losses | Derivative Instrument Gains and Losses (dollars in millions) Quarters Ended September 30, Nine Months Ended September 30, Derivative Instruments Gain / (Loss) Recognized 2016 2015 2016 2015 Non Qualifying Hedges Interest rate swaps Other income $ 2.4 $ (2.2) $ (0.6) $ (1.1) Interest rate options Other income 0.1 1.2 0.5 1.1 Foreign currency forward contracts Other income 1.4 43.8 (10.9) 84.5 Equity warrants Other income 0.1 – (0.2) 0.1 Total Return Swap (TRS) Other income (19.7) (24.3) 7.1 (31.7) Interest Rate Lock Commitments Other income 0.2 – 0.3 – Forward Sale Commitments on Agency MBS Other income (0.1) – (0.1) – Credit Derivatives Other income 0.2 – 1.4 – Total Non-qualifying Hedges $ (15.4) $ 18.5 $ (2.5) $ 52.9 Total derivatives-income statement impact $ (15.4) $ 18.5 $ (2.5) $ 52.9 |
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 Hedge ineffectiveness recorded directly in income Total income statement impact Derivatives - effective portion recorded in OCI Total change in OCI for period Quarter Ended September 30, 2016 Foreign currency forward contracts - net investment hedges $ – $ $ – $ 4.2 $ 4.2 Total $ – $ – $ – $ 4.2 $ 4.2 Quarter Ended September 30, 2015 Foreign currency forward contracts - net investment hedges $ 4.3 $ – $ 4.3 $ 44.0 $ 39.7 Total $ 4.3 $ – $ 4.3 $ 44.0 $ 39.7 Nine Months Ended September 30, 2016 Foreign currency forward contracts - net investment hedges 1.8 $ – $ 1.8 $ (28.1) $ (29.9) Total $ 1.8 $ – $ 1.8 $ (28.1) $ (29.9) Nine Months Ended September 30, 2015 Foreign currency forward contracts - net investment hedges 8.5 – 8.5 106.3 97.8 Total $ 8.5 $ – $ 8.5 $ 106.3 $ 97.8 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value [Abstract] | |
Assets And Liabilities Measured At Fair Value On A Recurring Basis | September 30, 2016 Total Level 1 Level 2 Level 3 Assets Debt Securities AFS $ 2,729.2 $ – $ 2,218.8 $ 510.4 Securities carried at fair value with changes recorded in net income 301.3 – – 301.3 Equity Securities AFS 34.8 0.2 34.6 – FDIC receivable 49.3 – – 49.3 Derivative assets at fair value -non-qualifying hedges (1) 116.1 – 115.7 0.4 Derivative assets at fair value - qualifying hedges 8.8 – 8.8 – Total $ 3,239.5 $ 0.2 $ 2,377.9 $ 861.4 Liabilities Derivative liabilities at fair value - non-qualifying hedges (1) $ (153.3) $ – $ (105.0) $ (48.3) Derivative liabilities at fair value - qualifying hedges (2.1) – (2.1) – Consideration holdback liability (47.0) – – (47.0) FDIC True-up Liability (61.3) – – (61.3) Total $ (263.7) $ – $ (107.1) $ (156.6) December 31, 2015 Assets Debt Securities AFS $ 2,007.8 $ – $ 1,440.7 $ 567.1 Securities carried at fair value with changes recorded in net income 339.7 – – 339.7 Equity Securities AFS (2) 14.3 0.3 14.0 – FDIC receivable 54.8 – – 54.8 Derivative assets at fair value -non-qualifying hedges (1) 95.6 – 95.6 – Derivative assets at fair value - qualifying hedges 45.5 – 45.5 – Total $ 2,557.7 $ 0.3 $ 1,595.8 $ 961.6 Liabilities Derivative liabilities at fair value - non-qualifying hedges (1) $ (103.3) $ – $ (47.8) $ (55.5) Derivative liabilities at fair value - qualifying hedges (0.3) – (0.3) – Consideration holdback liability (60.8) – – (60.8) FDIC True-up Liability (56.9) – – (56.9) Total $ (221.3) $ – $ (48.1) $ (173.2) (1) Derivative fair values include accrued interest |
Quantitative Information About Level 3 Fair Value Measurements-Recurring | Quantitative Information about Level 3 Fair Value Measurements—Recurring (dollars in millions) Financial Instrument Estimated Fair Value Valuation Technique(s) Significant Unobservable Inputs Range of Inputs Weighted Average September 30, 2016 Assets Securities—AFS $ 510.4 Discounted cash flow Discount Rate 2.7% - 81.4% 5.3% Prepayment Rate 1.7% - 20.6% 9.1% Default Rate 0.0% - 12.8% 4.1% Loss Severity 0.2% - 75.2% 36.1% Securities carried at fair value with changes recorded in net income 301.3 Discounted cash flow Discount Rate 0.0% - 37.8% 5.4% Prepayment Rate 5.4% - 35.8% 11.9% Default Rate 0.0% - 6.3% 4.0% Loss Severity 7.3% - 42.9% 24.7% FDIC Receivable 49.3 Discounted cash flow Discount Rate 7.8% - 18.4% 9.4% Prepayment Rate 2.0% - 14.0% 3.2% Default Rate 6.0% - 36.0% 10.5% Loss Severity 21.6% - 53.2% 29.2% Derivative assets - non qualifying 0.4 Internal valuation model Borrower Rate 2.9% - 4.5% 3.6% Total Assets $ 861.4 Liabilities FDIC True-up liability $ (61.3) Discounted cash flow Discount Rate 3.2 % - 3.2% 3.2% Consideration holdback liability (47.0) Discounted cash flow Payment Probability 0.0% - 100.0% 53.8% Discount Rate 1.3% - 4.0% 2.2% Derivative liabilities - non qualifying (48.3) Market Comparables (1) Total Liabilities $ (156.6) Financial Instrument Estimated Fair Value Valuation Technique(s) Significant Unobservable Inputs Range of Inputs Weighted Average December 31, 2015 Assets Securities—AFS $ 567.1 Discounted cash flow Discount Rate 0.0% - 94.5% 6.4% Prepayment Rate 2.7% - 20.8% 9.2% Default Rate 0.0% - 9.5% 4.1% Loss Severity 0.2% - 83.5% 36.4% Securities carried at fair value with changes recorded in net income 339.7 Discounted cash flow Discount Rate 0.0% - 19.9% 6.3% Prepayment Rate 2.5% - 22.4% 11.5% Default Rate 0.0% - 5.9% 4.1% Loss Severity 3.8% - 39.0% 25.1% FDIC Receivable 54.8 Discounted cash flow Discount Rate 7.8% - 18.4% 9.4% Prepayment Rate 2.0% - 14.0% 3.6% Default Rate 6.0% - 36.0% 10.8% Loss Severity 20.0% - 65.0% 31.6% Total Assets $ 961.6 Liabilities FDIC True-up liability $ (56.9) Discounted cash flow Discount Rate 4.1 % - 4.1% 4.1% Consideration holdback liability (60.8) Discounted cash flow Payment Probability 0% - 100% 53.8% Discount Rate 3.0% - 3.0% 3.0% Derivative liabilities - non qualifying (55.5) Market Comparables (1) Total Liabilities $ (173.2) (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 | 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 assets - non qualifying (1) Derivative liabilities - non-qualifying (2) FDIC True-up Liability Consideration holdback Liability December 31, 2015 $ 567.1 $ 339.7 $ 54.8 $ – $ (55.5) $ (56.9) $ (60.8) Included in earnings (4.6) 11.6 4.8 0.4 7.2 (4.4) (0.5) Included in comprehensive income 22.1 – – – – – – Impairment (2.2) – – – – – – Settlements (72.0) (50.0) (10.3) – – – 14.3 Balance as of September 30, 2016 $ 510.4 $ 301.3 $ 49.3 $ 0.4 $ (48.3) $ (61.3) $ (47.0) December 31, 2014 $ – $ – $ – $ – $ (26.6) $ – $ – Included in earnings (0.2) – 0.7 – (30.5) – – Included in comprehensive income (10.9) – – – – – – Purchases 992.8 – 54.8 – – (56.3) (60.8) Settlements (29.2) – (1.3) – – – – Balance as of September 30, 2015 $ 952.5 $ – $ 54.2 $ – $ (57.1) $ (56.3) $ (60.8) (1) Valuation of Interest Rate Lock Commitments. (2) Primarily includes the valuation of the derivatives related to the TRS facilities and written options on certain CIT Bank CDs. |
Carrying Value Of Assets Measured At Fair Value On A Non-Recurring Basis | Carrying Value of Assets Measured at Fair Value on a Non-recurring Basis (dollars in millions) Fair Value Level at Reporting Date Total Carrying Value Level 1 Level 2 Level 3 Total (Losses) Assets September 30, 2016 Assets held for sale $ 1,598.0 $ – $ 3.7 $ 1,594.3 $ (41.2) Other real estate owned and repossessed assets 88.7 – – 88.7 (5.8) Impaired loans 125.6 – – 125.6 (20.0) Total $ 1,812.3 $ – $ 3.7 $ 1,808.6 $ (67.0) December 31, 2015 Assets held for sale $ 1,648.3 $ – $ 31.0 $ 1,617.3 $ (32.0) Other real estate owned and repossessed assets 127.3 – – 127.3 (5.7) Impaired loans 127.6 – – 127.6 (21.9) Total $ 1,903.2 $ – $ 31.0 $ 1,872.2 $ (59.6) |
Summary Of Fair Value Option For FDIC Receivable | FDIC Receivable (dollars in millions) September 30, 2016 Estimated Fair Value Carrying Amount Aggregate Unpaid Principal Difference Between Estimated Fair Value and Aggregate Unpaid Principal Balance FDIC Receivable $ 49.3 $ 178.8 $ 129.4 December 31, 2015 Estimated Fair Value Carrying Amount Aggregate Unpaid Principal Difference Between Estimated Fair Value and Aggregate Unpaid Principal Balance FDIC Receivable $ 54.8 $ 204.5 $ 149.7 |
Carrying And Estimated Fair Values Of Financial Instruments | Financial Instruments (dollars in millions) Estimated Fair Value Carrying September 30, 2016 Value Level 1 Level 2 Level 3 Total Financial Assets Cash and interest bearing deposits $ 7,433.6 $ 7,433.6 $ $ – $ 7,433.6 Derivative assets at fair value - non-qualifying hedges 116.1 – 115.7 0.4 116.1 Derivative assets at fair value - qualifying hedges 8.8 – 8.8 – 8.8 Assets held for sale (excluding leases) 1,125.3 – 164.5 968.4 1,132.9 Loans (excluding leases) 27,084.5 – 430.0 26,431.0 26,861.0 Investment securities (1) 3,592.4 0.2 2,446.6 1,152.5 3,599.3 Indemnification assets (2) 259.7 – – 215.8 215.8 Other assets subject to fair value disclosure and unsecured counterparty receivables ( 3) 1,094.9 – – 1,094.9 1,094.9 Financial Liabilities Deposits (4) (32,883.7) – – (33,145.8) (33,145.8) Derivative liabilities at fair value - non-qualifying hedges (153.3) – (105.0) (48.3) (153.3) Derivative liabilities at fair value - qualifying hedges (2.1) – (2.1) – (2.1) Borrowings (4) (16,667.8) – (15,214.2) (2,069.0) (17,283.2) Credit balances of factoring clients (1,228.9) – – (1,228.9) (1,228.9) Other liabilities subject to fair value disclosure (5) (1,973.2) – – (1,973.2) (1,973.2) December 31, 2015 Financial Assets Cash and interest bearing deposits $ 8,301.5 $ 8,301.5 $ – $ – $ 8,301.5 Derivative assets at fair value - non-qualifying hedges 95.6 – 95.6 – 95.6 Derivative assets at fair value - qualifying hedges 45.5 – 45.5 – 45.5 Assets held for sale (excluding leases) 738.8 21.8 55.8 669.1 746.7 Loans (excluding leases) 28,244.2 – 975.5 26,509.1 27,484.6 Investment securities (1) 2,953.8 11.5 1,678.7 1,265.0 2,955.2 Indemnification assets (2) 348.4 – – 323.2 323.2 Other assets subject to fair value disclosure and unsecured counterparty receivables ( 3) 1,004.5 – – 1,004.5 1,004.5 Financial Liabilities Deposits (4) (32,813.8) – – (32,972.2) (32,972.2) Derivative liabilities at fair value - non-qualifying hedges (103.3) – (47.8) (55.5) (103.3) Derivative counterparty liabilities at fair value (0.3) – (0.3) – (0.3) Borrowings (4) (18,717.1) – (16,358.2) (2,808.8) (19,167.0) Credit balances of factoring clients (1,344.0) – – (1,344.0) (1,344.0) Other liabilities subject to fair value disclosure (5) (1,943.5) – – (1,943.5) (1,943.5) (1) Level 3 estimated fair value at September 30, 2016, includes debt securities AFS ( $510.4 million), securities carried at fair value with changes recorded in net income ( $301.3 million), non-marketable investments ( $272.7 million), and debt securities HTM ( $68.1 million). Level 3 estimated fair value at December 31, 2015 included debt securities AFS ( $567.1 million), debt securities carried at fair value with changes recorded in net income ( $339.7 million), non-marketable investments ( $291.9 million), and debt securities HTM ( $66.3 million). (2) The indemnification assets at September 30, 2016, included in the above table does not include Agency claims indemnification ( $102.5 million), as they are not considered financial instruments. The indemnification assets at December 31, 2015 included in the above table does not include Agency claims indemnification ( $65.6 million) and Loan indemnification ( $0.7 million ) , 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) | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity [Abstract] | |
Components Of Accumulated Other Comprehensive Income (Loss) | Components of Accumulated Other Comprehensive Loss (dollars in millions) September 30, 2016 December 31, 2015 Gross Unrealized Income Taxes Net Unrealized Gross Unrealized Income Taxes Net Unrealized Foreign currency translation adjustments $ (26.8) $ (22.6) $ (49.4) $ (29.8) $ (35.9) $ (65.7) Changes in benefit plan net gain (loss) and prior service (cost)/credit (75.0) 7.0 (68.0) (76.3) 7.0 (69.3) Unrealized net gains (losses) on available for sale securities 21.3 (8.1) 13.2 (11.4) 4.3 (7.1) Total accumulated other comprehensive loss $ (80.5) $ (23.7) $ (104.2) $ (117.5) $ (24.6) $ (142.1) |
Changes In Accumulated Other Comprehensive Loss By Component | 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, 2015 $ (65.7) $ (69.3) $ (7.1) $ (142.1) AOCI activity before reclassifications 11.6 (0.2) 20.3 31.7 Amounts reclassified from AOCI 4.7 1.5 – 6.2 Net current period AOCI 16.3 1.3 20.3 37.9 Balance as of September 30, 2016 $ (49.4) $ (68.0) $ 13.2 $ (104.2) Balance as of December 31, 2014 $ (75.4) $ (58.5) $ – $ (133.9) AOCI activity before reclassifications (55.6) (1.7) (5.9) (63.2) Amounts reclassified from AOCI 22.2 0.6 – 22.8 Net current period AOCI (33.4) (1.1) (5.9) (40.4) Balance as of September 30, 2015 $ (108.8) $ (59.6) $ (5.9) $ (174.3) |
Reclassifications Out Of Accumulated Other Comprehensive Income | Reclassifications Out of Accumulated Other Comprehensive Income (dollars in millions) Quarters Ended September 30, 2016 2015 Income Gross Amount Tax Net Amount Gross Amount Tax Net Amount Statement line item Foreign currency translation adjustments gains (losses) $ – $ – $ – $ 19.2 $ (0.4) $ 18.8 Other Income Changes in benefit plan net gain/(loss) and prior service (cost)/credit gains (losses) 0.1 – 0.1 0.7 (0.2) 0.5 Operating Expenses Total Reclassifications out of AOCI $ 0.1 $ – $ 0.1 $ 19.9 $ (0.6) $ 19.3 Nine Months Ended September 30, 2016 2015 Income Gross Amount Tax Net Amount Gross Amount Tax Net Amount Statement line item Foreign currency translation adjustments gains (losses) $ 3.6 $ 1.1 $ 4.7 $ 22.6 $ (0.4) $ 22.2 Other Income Changes in benefit plan net gain/(loss) and prior service (cost)/credit gains (losses) 1.7 (0.2) 1.5 0.9 (0.3) 0.6 Operating Expenses Total Reclassifications out of AOCI $ 5.3 $ 0.9 $ 6.2 $ 23.5 $ (0.7) $ 22.8 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Regulatory Capital [Abstract] | |
Tier 1 Capital And Total Capital Components | Tier 1 Capital and Total Capital Components (dollars in millions) CIT CIT Bank, N.A. September 30, December 31, September 30, December 31, Tier 1 Capital 2016 2015 2016 2015 Total stockholders’ equity (1) $ 11,237.0 $ 10,978.1 $ 5,535.1 $ 5,606.4 Effect of certain items in accumulated other comprehensive loss excluded from Tier 1 Capital and qualifying noncontrolling interests 55.3 76.9 (13.3) 7.0 Adjusted total equity 11,292.3 11,055.0 5,521.8 5,613.4 Less: Goodwill (2) (1,099.8) (1,130.8) (810.3) (830.8) Disallowed deferred tax assets (804.4) (904.5) – – Disallowed intangible assets (2) (71.3) (53.6) (83.1) (58.3) Other Tier 1 components (3) (5.8) (0.1) – – Common Equity Tier 1 Capital 9,311.0 8,966.0 4,628.4 4,724.3 Tier 1 Capital 9,311.0 8,966.0 4,628.4 4,724.3 Tier 2 Capital Qualifying allowance for credit losses and other reserves (4) 469.3 403.3 439.5 374.7 Other Tier 2 components (5) – – 0.1 – Total qualifying capital $ 9,780.3 $ 9,369.3 $ 5,068.0 $ 5,099.0 Risk-weighted assets $ 66,802.2 $ 69,563.6 $ 35,239.4 $ 36,809.5 Common Equity Tier 1 Capital (to risk-weighted assets): Actual 13.9% 12.9% 13.1% 12.8% Effective minimum ratios under Basel III guidelines (6) 5.125% 4.5% 5.125% 4.5% Tier 1 Capital (to risk-weighted assets): Actual 13.9% 12.9% 13.1% 12.8% Effective minimum ratios under Basel III guidelines (6) 6.625% 6.0% 6.625% 6.0% Total Capital (to risk-weighted assets): Actual 14.6% 13.5% 14.4% 13.9% Effective minimum ratios under Basel III guidelines (6) 8.625% 8.0% 8.625% 8.0% Tier 1 Leverage Ratio: Actual 14.4% 13.5% 10.9% 10.9% Required minimum ratio for capital adequacy purposes 4.0% 4.0% 4.0% 4.0% (1) See Consolidated Balance Sheets for the components of Total stockholders’ equity. (2) Goodwill and disallowed intangible assets adjustments also reflect the portion included within assets held for sale. (3) September 30th, 2016 amount represents the Volcker Rule requirement of deducting covered funds from equity. This requirement was first implemented in the second quarter of 2016. December 31, 2015 amount includes the Tier 1 capital charge for nonfinancial equity instruments under Basel I. (4) “Other reserves” represents additional credit loss reserves for unfunded lending commitments, letters of credit, and deferred purchase agreements, all of which are recorded in Other Liabilities. (5) Banking organizations are permitted to include in Tier 2 Capital up to 45% of net unrealized pretax gains on available-for-sale equity securities with readily determinable fair values. (6) Required ratios under Basel III Final Rule in effect as of the reporting date. |
Commitments (Tables)
Commitments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Commitments [Abstract] | |
Summary Of Commitments | Commitments (dollars in millions) September 30, 2016 December 31, Due to Expire 2015 Within After Total Total One Year One Year Outstanding Outstanding Financing Commitments Financing assets $ 1,417.1 $ 5,326.1 $ 6,743.2 $ 7,385.6 Letters of credit Standby letters of credit 31.9 197.9 229.8 315.3 Other letters of credit 11.5 - 11.5 18.3 Guarantees Deferred purchase agreements 2,076.5 - 2,076.5 1,806.5 Guarantees, acceptances and other recourse obligations 2.4 - 2.4 0.7 Purchase and Funding Commitments Aerospace purchase commitments 591.2 8,346.1 8,937.3 9,618.1 Rail and other purchase commitments 395.9 27.8 423.7 898.2 |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Business Segment Information [Abstract] | |
Segment Pre-Tax Income (Loss) | Segment Pre-tax Income (Loss) (dollars in millions) Quarter Ended September 30, 2016 Transportation Finance Commercial Banking Consumer and Community Banking Non-Strategic Portfolios Corporate & Other Total CIT Interest income $ 51.3 $ 285.0 $ 102.9 $ 22.6 $ 28.3 $ 490.1 Interest expense (146.7) (76.2) (1.9) (12.7) (41.9) (279.4) Provision for credit losses (5.5) (39.2) (1.6) 0.1 – (46.2) Rental income on operating leases 527.9 31.9 – 3.8 – 563.6 Other income 6.5 65.9 7.1 4.9 (10.5) 73.9 Depreciation on operating lease equipment (154.7) (24.4) – – – (179.1) Maintenance and other operating lease expenses (60.4) – – – – (60.4) Operating expenses / loss on debt extinguishment and deposit redemption (61.8) (161.2) (87.7) (11.0) (15.4) (337.1) Income (loss) from continuing operations before (provision) benefit for income taxes $ 156.6 $ 81.8 $ 18.8 $ 7.7 $ (39.5) $ 225.4 Quarter Ended September 30, 2015 Interest income $ 50.2 $ 251.5 $ 73.9 $ 43.7 $ 18.4 $ 437.7 Interest expense (139.7) (67.3) (13.8) (27.3) (32.2) (280.3) Provision for credit losses 1.6 (43.2) (5.1) (3.2) – (49.9) Rental income on operating leases 505.7 24.6 – 9.0 – 539.3 Other income 23.0 70.7 0.1 (35.4) (19.2) 39.2 Depreciation on operating lease equipment (137.5) (18.1) – (3.5) – (159.1) Maintenance and other operating lease expenses (55.9) – – – – (55.9) Operating expenses / loss on debt extinguishment (53.6) (146.5) (59.0) (26.0) (49.1) (334.2) Income (loss) from continuing operations before (provision) benefit for income taxes $ 193.8 $ 71.7 $ (3.9) $ (42.7) $ (82.1) $ 136.8 Nine Months Ended September 30, 2016 Interest income $ 153.9 $ 861.3 $ 311.5 $ 70.8 $ 83.3 $ 1,480.8 Interest expense (441.3) (224.5) (16.7) (40.9) (124.9) (848.3) Provision for credit losses (43.8) (124.1) (5.8) 0.1 – (173.6) Rental income on operating leases 1,609.0 87.7 – 11.6 – 1,708.3 Other income 37.0 182.3 26.9 26.1 6.8 279.1 Depreciation on operating lease equipment (464.9) (65.9) – – – (530.8) Maintenance and other operating lease costs (181.5) – – – – (181.5) Operating expenses / loss on debt extinguishment (184.7) (468.3) (263.2) (35.2) (77.4) (1,028.8) Income (loss) from continuing operations before (provisions) benefit for income taxes $ 483.7 $ 248.5 $ 52.7 $ 32.5 $ (112.2) $ 705.2 Select Period End Balances Loans $ 2,224.2 $ 20,564.7 $ 7,129.3 $ – $ – $ 29,918.2 Credit balances of factoring clients – 1,228.9 – – – 1,228.9 Assets held for sale 1,084.6 331.7 41.7 1,004.1 – 2,462.1 Operating lease equipment, net 16,606.2 348.6 – – – 16,954.8 Nine Months Ended September 30, 2015 Interest income $ 137.3 $ 618.7 $ 73.9 $ 145.3 $ 27.3 $ 1,002.5 Interest expense (439.0) (196.8) (13.8) (99.3) (67.9) (816.8) Provision for credit losses (5.9) (85.6) (5.1) (6.3) – (102.9) Rental income on operating leases 1,500.3 71.5 – 29.8 1,601.6 Other income 72.2 201.6 0.1 (42.6) (42.2) 189.1 Depreciation on operating lease equipment (410.1) (52.8) – (10.8) – (473.7) Maintenance and other operating lease costs (151.4) – – – – (151.4) Operating expenses / loss on debt extinguishment (184.6) (410.5) (59.0) (97.6) (59.2) (810.9) Income (loss) from continuing operations before (provisions) benefit for income taxes $ 518.8 $ 146.1 $ (3.9) $ (81.5) $ (142.0) $ 437.5 Select Period End Balances Loans $ 3,305.5 $ 21,849.5 $ 7,251.2 $ – $ – $ 32,406.2 Credit balances of factoring clients – 1,609.3 – – – 1,609.3 Assets held for sale 142.3 174.4 45.8 1,791.8 – 2,154.3 Operating lease equipment, net 15,287.3 250.9 – – – 15,538.2 |
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill [Abstract] | |
Summary Of Goodwill | Transportation Finance Commercial Banking Consumer and Community Banking Total December 31, 2015 (1) $ 245.0 $ 579.1 $ 374.2 $ 1,198.3 Additions, Other activity (2) (7.3) (8.9) (11.6) (27.8) September 30, 2016 $ 237.7 $ 570.2 $ 362.6 $ 1,170.5 (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 good will allocation among Consumer and Community 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) Includes purchase accounting measurement period adjustments in C ommercial Banking and Consumer and Community Banking as well as the transfer of assets to held for sale and foreign exchange translation adjustments in Transportation Finance. |
Business And Summary Of Signi42
Business And Summary Of Significant Accounting Policies (Narrative) (Details) $ in Millions | Aug. 03, 2015store | Sep. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2016USD ($)store | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||
Number of branches acquired | store | 70 | ||||||||
Net Cash Provided by (Used in) Operating Activities | $ 522.5 | $ 1,036.2 | $ 1,481.4 | $ 793.7 | $ 871.2 | $ 1,206.4 | |||
Net Cash Provided by (Used in) Investing Activities | (299.2) | (326.8) | (507.9) | 1,157.5 | 1,463.8 | (981.4) | |||
Net Cash Provided by (Used in) Financing Activities | (375.4) | (1,863.8) | (683.3) | ||||||
Increase (decrease) in unrestricted cash and cash equivalents | $ (890.3) | $ 1,267.9 | |||||||
OneWest Bank [Member] | |||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||
Number of branches acquired | store | 70 | ||||||||
Acquisition date | Aug. 3, 2015 | ||||||||
Restatement Adjustment [Member] | |||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||||
Net Cash Provided by (Used in) Operating Activities | 43.5 | $ 13 | 20.4 | 19.3 | 13.7 | ||||
Net Cash Provided by (Used in) Investing Activities | 73.2 | 9 | 20.4 | 19.3 | 13.7 | ||||
Net Cash Provided by (Used in) Financing Activities | $ 29.7 | 22 | $ 0 | $ 0 | $ 0 | ||||
Increase (decrease) in unrestricted cash and cash equivalents | $ 0 | $ 0 |
Acquisition And Disposition A43
Acquisition And Disposition Activities (Narrative) (Details) $ in Millions | Aug. 03, 2015USD ($)storeshares | Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($)store | Dec. 31, 2015USD ($) | Jun. 30, 2016USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of branches | store | 70 | ||||
Impairment charge | $ 19 | ||||
Additional reserves | 230 | $ 230 | $ 230 | ||
Interest curtailment reserve | 0 | ||||
Pre-tax expense related to interest curtailment reserve | 10 | ||||
Amount of decrease in estimable losses of contingent servicing - related liabilities | $ 35 | ||||
Idemnification receivable | 102.5 | 102.5 | 65.6 | ||
Indemnification Agreements [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Idemnification receivable | 102 | 102 | 66 | ||
Reverse Mortgages Portfolio [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Maximum estimable losses of contingent servicing-related liabilities | 5 | 5 | |||
Reverse Mortgages Portfolio [Member] | Reverse Mortgage Servicing [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Impairment charge | 19 | ||||
Servicing liability | 29 | $ 29 | 10 | ||
PCI Loans [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Purchase accounting adjustment premium | 13.2 | ||||
IMB Holdco LLC [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cash for expenses | $ 2 | ||||
OneWest Bank [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Acquisition date | Aug. 3, 2015 | ||||
Consideration amount | 3,400 | ||||
Cash consideration paid | 1,900 | ||||
Amount of cash held retained for potential liabilities | 116 | ||||
Assets acquired | 21,800 | ||||
Liabilities assumed | $ 18,400 | ||||
Number of branches | store | 70 | ||||
Percentage of outstanding shares acquired | 100.00% | ||||
Purchase price | $ 3,400 | ||||
IndyMac Transaction [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Idemnification receivable | $ 102.5 | $ 102.5 | $ 65.6 | ||
Common Stock [Member] | OneWest Bank [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Equity shares paid | shares | 30,900,000 | ||||
Value of equity shares paid | $ 1,500 | ||||
Restricted Stock Units (RSUs) [Member] | OneWest Bank [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Equity shares paid | shares | 168,000 | ||||
Value of equity shares paid | $ 8 |
Acquisition And Disposition A44
Acquisition And Disposition Activities (Schedule Of Condensed Balance Sheet Discontinued Operations) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Acquisition And Disposition Activities [Abstract] | ||
Net Finance Receivables | $ 393 | $ 449.5 |
Other assets | 59.9 | 51 |
Assets of discontinued operations | 452.9 | 500.5 |
Secured borrowings | 386.6 | 440.6 |
Other liabilities | 541.2 | 255.6 |
Liabilities of discontinued operations | 927.8 | 696.2 |
Net finance receivables of securitized balances | 385.6 | 440.2 |
Net finance receivables awaiting securitization | $ 7.4 | $ 9.3 |
Acquisition And Disposition A45
Acquisition And Disposition Activities (Schedule Of Condensed Statements of Operations Discontinued Operations And Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | |
Acquisition And Disposition Activities [Abstract] | |||||
Interest income | $ 2.8 | $ 2.2 | $ 8.7 | $ 2.2 | |
Interest expense | (2.5) | (2.3) | (8.1) | (2.3) | |
Other income (loss) | (10.3) | 6.1 | 7.3 | 6.1 | |
Operating expenses | (14.9) | (11.8) | (276.6) | (11.8) | |
Loss from discontinued operation before benefit for income taxes | (24.9) | (5.8) | (268.7) | (5.8) | |
Benefit for income taxes | 9.3 | 2.1 | 81.3 | 2.1 | |
Loss from discontinued operatoin, net of taxes | (15.6) | (3.7) | (187.4) | (3.7) | |
Impairment charge | 19 | ||||
Salaries and benefits expense | 5.1 | 4.4 | 11 | 4.4 | |
Professional and legal services expense | 6.6 | 2.8 | 16.1 | 2.8 | |
Other expenses | 3.2 | $ 4.6 | 10.5 | $ 4.6 | |
Servicing-related reserves | $ 230 | $ 230 | $ 230 | ||
Tax rate for discontinued operations | 38.00% | 36.50% | 30.00% | 36.50% | |
Net cash flows used for operations | $ (32) | $ (1.4) | |||
Net cash flows provided by investing activities | $ 69.8 | $ 9.8 |
Loans (Narrative) (Details)
Loans (Narrative) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)loan | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Percentage of TDRs non-accrual | 87.00% | 87.00% | 63.00% | ||
Recorded investment of TDRs | $ 62,200,000 | $ 62,200,000 | $ 40,200,000 | ||
Troubled debt restructuring related to modifications | 39,400,000 | $ 17,300,000 | 58,100,000 | $ 20,100,000 | |
Troubled debt restructurings that defaulted within one year | $ 10,500,000 | $ 400,000 | $ 12,600,000 | $ 4,500,000 | |
Troubled debt restructuring, payment deferral rate | 14.00% | 14.00% | 13.00% | ||
Troubled debt restructuring, covenant relief rate, other | 86.00% | 86.00% | 87.00% | ||
Repurchase of reverse mortgage loans | $ 22,500,000 | $ 118,100,000 | |||
Repurchased reverse mortgages, balance amount | 122,000,000 | $ 122,000,000 | |||
Minimum [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Impaired loan threshold for individual review for impairment | 500,000 | $ 500,000 | |||
Period threshold at which impaired finance receivables that are placed on non-accrual status are subject to individual review, days | 90 days | ||||
Percent required of claim amount for loan service | 98.00% | ||||
Reverse Mortgages Portfolio [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Reverse mortgages | 868,900,000 | $ 868,900,000 | $ 897,300,000 | ||
Number of loans in portfolio | loan | 1,800 | 1,960 | |||
Average borrower age in portfolio | 83 years | 82 years | |||
Amount of reverse mortgages uninsured | 779,600,000 | $ 779,600,000 | $ 812,600,000 | ||
Unpaid principal balance | 1,051,500,000 | 1,051,500,000 | 1,113,400,000 | ||
Accruing Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Recorded investment of TDRs | 41,900,000 | 41,900,000 | 31,400,000 | ||
Non-accruing Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Recorded investment of TDRs | $ 900,000 | $ 900,000 | $ 100,000 | ||
Transportation Finance [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Percentage of investments in Troubled Debt Restructurings ("TDR") | 26.00% | ||||
Commitments to lend additional funds to borrowers | $ 1,400,000 | ||||
Commercial Finance [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Percentage of investments in Troubled Debt Restructurings ("TDR") | 74.00% | 74.00% | |||
Commercial Banking [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Percentage of investments in Troubled Debt Restructurings ("TDR") | 61.00% | ||||
Commitments to lend additional funds to borrowers | $ 4,800,000 | $ 4,800,000 | |||
Non-Strategic Portfolios [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Percentage of investments in Troubled Debt Restructurings ("TDR") | 7.00% | 7.00% | |||
Consumer And Community Banking [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans with terms that permitted negative amortization, unpaid principal balance | $ 813,000,000 | $ 966,000,000 | |||
Percentage of investments in Troubled Debt Restructurings ("TDR") | 18.00% | 18.00% | |||
Real Estate Mortgage Loan [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Period threshold at which impaired finance receivables that are placed on non-accrual status are subject to individual review, days | 120 days | ||||
Home Affordable Modification Program (HAMP) [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans in trial modification period | $ 37,800,000 | 26,200,000 | |||
Second Lien Modification Program (2MP) [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans in trial modification period | 300,000 | 100,000 | |||
Proprietary Programs [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans in trial modification period | $ 4,700,000 | 5,200,000 | |||
OneWest Bank [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Acquisition date | Aug. 3, 2015 | ||||
Assets Held-For-Sale (AHFS) [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Repurchase of reverse mortgage loans | $ 16,000,000 | $ 32,800,000 | 20,200,000 | ||
Valuation allowance | 100,000 | 100,000 | |||
Associated purchased accounting discount | 100,000 | ||||
Assets Held-For-Investment (HFI) [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Repurchase of reverse mortgage loans | 6,500,000 | ||||
Valuation allowance | $ 70,800,000 | 70,800,000 | |||
Associated purchased accounting discount | 9,800,000 | 87,600,000 | |||
Serviced loans accounted for under effective yield method | $ 28,300,000 | 10,300,000 | |||
PCI Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Associated purchased accounting discount | $ 13,200,000 |
Loans (Schedule Of Finance Rece
Loans (Schedule Of Finance Receivables By Product) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Loans [Abstract] | ||
Commercial Loans | $ 20,341.8 | $ 21,380.9 |
Direct financing leases and leveraged leases | 2,833.7 | 3,427.5 |
Total commercial | 23,175.5 | 24,808.4 |
Consumer Loans | 6,742.7 | 6,863.3 |
Total finance receivables | 29,918.2 | 31,671.7 |
Finance receivables held for sale | 2,361.7 | 1,985.1 |
Finance receivables and held for sale receivables | $ 32,279.9 | $ 33,656.8 |
Loans (Schedule Of Finance Re48
Loans (Schedule Of Finance Receivables By Segment, Based On Obligor Location) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | $ 29,918.2 | $ 31,671.7 | $ 32,406.2 |
Transportation Finance [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 2,224.2 | 3,542.1 | 3,305.5 |
Commercial Banking [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 20,564.7 | 20,929.2 | 21,849.5 |
Consumer And Community Banking [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 7,129.3 | 7,200.4 | $ 7,251.2 |
Domestic [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 27,712.2 | 28,623.4 | |
Domestic [Member] | Transportation Finance [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 317.3 | 815.1 | |
Domestic [Member] | Commercial Banking [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 20,265.6 | 20,607.9 | |
Domestic [Member] | Consumer And Community Banking [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 7,129.3 | 7,200.4 | |
Foreign [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 2,206 | 3,048.3 | |
Foreign [Member] | Transportation Finance [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 1,906.9 | 2,727 | |
Foreign [Member] | Commercial Banking [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | $ 299.1 | $ 321.3 |
Loans (Components Of Net Invest
Loans (Components Of Net Investment In Finance Receivables) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Loans [Abstract] | ||
Unearned income | $ (715.7) | $ (870.4) |
Unamortized premiums / (discounts) | (39.1) | (34) |
Accretable yield on Purchased Credit-Impaired ("PCI") loans | 1,256.8 | 1,294 |
Net unamortized deferred costs and (fees) | $ 49 | $ 42.9 |
Loans (Finance And Held-For-Sal
Loans (Finance And Held-For-Sale Receivables - By Risk Rating) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | $ 25,495.5 | $ 26,747.6 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 21,578.9 | 23,657.7 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 1,932.1 | 1,596.9 |
Classified - Accruing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 1,584.7 | 1,061.2 |
Classified- Non-accrual [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 274.4 | 262.5 |
PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 125.4 | 169.3 |
Transportation Finance [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 3,258.8 | 3,561.6 |
Transportation Finance [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 2,250.8 | 3,063.6 |
Transportation Finance [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 403.2 | 228.4 |
Transportation Finance [Member] | Classified - Accruing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 550.4 | 254.2 |
Transportation Finance [Member] | Classified- Non-accrual [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 54.4 | 15.4 |
Transportation Finance [Member] | Aerospace [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 1,591.1 | 1,762.3 |
Transportation Finance [Member] | Aerospace [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 1,301.6 | 1,635.7 |
Transportation Finance [Member] | Aerospace [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 231.5 | 65 |
Transportation Finance [Member] | Aerospace [Member] | Classified - Accruing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 53 | 46.2 |
Transportation Finance [Member] | Aerospace [Member] | Classified- Non-accrual [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 5 | 15.4 |
Transportation Finance [Member] | Rail [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 106.3 | 120.9 |
Transportation Finance [Member] | Rail [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 103.6 | 118.9 |
Transportation Finance [Member] | Rail [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 1.4 | 1.4 |
Transportation Finance [Member] | Rail [Member] | Classified - Accruing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 1.3 | 0.6 |
Transportation Finance [Member] | Maritime Finance [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 1,561.4 | 1,678.4 |
Transportation Finance [Member] | Maritime Finance [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 845.6 | 1,309 |
Transportation Finance [Member] | Maritime Finance [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 170.3 | 162 |
Transportation Finance [Member] | Maritime Finance [Member] | Classified - Accruing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 496.1 | 207.4 |
Transportation Finance [Member] | Maritime Finance [Member] | Classified- Non-accrual [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 49.4 | |
Commercial Banking [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 20,896.4 | 21,331.9 |
Commercial Banking [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 18,165.2 | 19,007.2 |
Commercial Banking [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 1,462.9 | 1,241 |
Commercial Banking [Member] | Classified - Accruing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 967.3 | 728.6 |
Commercial Banking [Member] | Classified- Non-accrual [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 179.9 | 191.1 |
Commercial Banking [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 121.1 | 164 |
Commercial Banking [Member] | Commercial Finance [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 8,580 | 9,432.2 |
Commercial Banking [Member] | Commercial Finance [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 7,049.5 | 8,215 |
Commercial Banking [Member] | Commercial Finance [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 751.9 | 626.4 |
Commercial Banking [Member] | Commercial Finance [Member] | Classified - Accruing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 602.4 | 389.9 |
Commercial Banking [Member] | Commercial Finance [Member] | Classified- Non-accrual [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 131.1 | 131.5 |
Commercial Banking [Member] | Commercial Finance [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 45.1 | 69.4 |
Commercial Banking [Member] | Real Estate Finance [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 5,413.9 | 5,357.6 |
Commercial Banking [Member] | Real Estate Finance [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 5,060.5 | 5,143.2 |
Commercial Banking [Member] | Real Estate Finance [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 178 | 97.6 |
Commercial Banking [Member] | Real Estate Finance [Member] | Classified - Accruing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 92.5 | 18.6 |
Commercial Banking [Member] | Real Estate Finance [Member] | Classified- Non-accrual [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 6.9 | 3.6 |
Commercial Banking [Member] | Real Estate Finance [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 76 | 94.6 |
Commercial Banking [Member] | Business Capital [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 6,902.5 | 6,542.1 |
Commercial Banking [Member] | Business Capital [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 6,055.2 | 5,649 |
Commercial Banking [Member] | Business Capital [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 533 | 517 |
Commercial Banking [Member] | Business Capital [Member] | Classified - Accruing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 272.4 | 320.1 |
Commercial Banking [Member] | Business Capital [Member] | Classified- Non-accrual [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 41.9 | 56 |
Consumer And Community Banking [Member] | Other Consumer Banking [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 386.6 | 336.3 |
Consumer And Community Banking [Member] | Other Consumer Banking [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 348.5 | 300.6 |
Consumer And Community Banking [Member] | Other Consumer Banking [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 13.5 | 12.1 |
Consumer And Community Banking [Member] | Other Consumer Banking [Member] | Classified - Accruing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 20.2 | 18.3 |
Consumer And Community Banking [Member] | Other Consumer Banking [Member] | Classified- Non-accrual [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 0.1 | |
Consumer And Community Banking [Member] | Other Consumer Banking [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 4.3 | 5.3 |
Non-Strategic Portfolios [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 953.7 | 1,517.8 |
Non-Strategic Portfolios [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 814.4 | 1,286.3 |
Non-Strategic Portfolios [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 52.5 | 115.4 |
Non-Strategic Portfolios [Member] | Classified - Accruing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 46.8 | 60.1 |
Non-Strategic Portfolios [Member] | Classified- Non-accrual [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | $ 40 | $ 56 |
Loans (Schedule Of Consumer Loa
Loans (Schedule Of Consumer Loan LTV Distributions) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | $ 25,495.5 | $ 26,747.6 |
Single Family Residential Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 5,873.8 | 5,966 |
Single Family Residential Mortgages [Member] | Greater than 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 311.3 | 413.2 |
Single Family Residential Mortgages [Member] | 101% - 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 507.3 | 638.6 |
Single Family Residential Mortgages [Member] | 80% - 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 893.7 | 1,027.1 |
Single Family Residential Mortgages [Member] | Less than 80% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 4,159.3 | 3,879.3 |
Single Family Residential Mortgages [Member] | N/A [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 2.2 | 7.8 |
Reverse Mortgages Portfolio [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 868.9 | 897.3 |
Reverse Mortgages Portfolio [Member] | Greater than 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 41.2 | 44.2 |
Reverse Mortgages Portfolio [Member] | 101% - 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 23 | 26 |
Reverse Mortgages Portfolio [Member] | 80% - 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 75.5 | 70.9 |
Reverse Mortgages Portfolio [Member] | Less than 80% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 729.2 | 756.2 |
Consumer Portfolio [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 6,742.7 | 6,863.3 |
Consumer Portfolio [Member] | Greater than 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 352.5 | 457.4 |
Consumer Portfolio [Member] | 101% - 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 530.3 | 664.6 |
Consumer Portfolio [Member] | 80% - 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 969.2 | 1,098 |
Consumer Portfolio [Member] | Less than 80% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 4,888.5 | 4,635.5 |
Consumer Portfolio [Member] | N/A [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 2.2 | 7.8 |
PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 125.4 | 169.3 |
PCI Loans [Member] | Covered Loans [Member] | Single Family Residential Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 2,234.7 | 2,396.9 |
PCI Loans [Member] | Covered Loans [Member] | Single Family Residential Mortgages [Member] | Greater than 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 296 | 395.6 |
PCI Loans [Member] | Covered Loans [Member] | Single Family Residential Mortgages [Member] | 101% - 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 489.8 | 619.9 |
PCI Loans [Member] | Covered Loans [Member] | Single Family Residential Mortgages [Member] | 80% - 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 577.7 | 552.1 |
PCI Loans [Member] | Covered Loans [Member] | Single Family Residential Mortgages [Member] | Less than 80% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 871.2 | 829.3 |
PCI Loans [Member] | Non-covered Loans [Member] | Single Family Residential Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 9.1 | 54.9 |
PCI Loans [Member] | Non-covered Loans [Member] | Single Family Residential Mortgages [Member] | Greater than 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 15.7 | |
PCI Loans [Member] | Non-covered Loans [Member] | Single Family Residential Mortgages [Member] | 101% - 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 14.9 | |
PCI Loans [Member] | Non-covered Loans [Member] | Single Family Residential Mortgages [Member] | 80% - 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 11.4 | |
PCI Loans [Member] | Non-covered Loans [Member] | Single Family Residential Mortgages [Member] | Less than 80% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 9.1 | 12.9 |
PCI Loans [Member] | Non-covered Loans [Member] | Reverse Mortgages Portfolio [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 61 | 74.4 |
PCI Loans [Member] | Non-covered Loans [Member] | Reverse Mortgages Portfolio [Member] | Greater than 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 33 | 39.3 |
PCI Loans [Member] | Non-covered Loans [Member] | Reverse Mortgages Portfolio [Member] | 101% - 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 10.2 | 17 |
PCI Loans [Member] | Non-covered Loans [Member] | Reverse Mortgages Portfolio [Member] | 80% - 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 8.2 | 7 |
PCI Loans [Member] | Non-covered Loans [Member] | Reverse Mortgages Portfolio [Member] | Less than 80% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 9.6 | 11.1 |
Non-PCI Loans [Member] | Covered Loans [Member] | Single Family Residential Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 1,845.5 | 2,075 |
Non-PCI Loans [Member] | Covered Loans [Member] | Single Family Residential Mortgages [Member] | Greater than 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 1.6 | 1.1 |
Non-PCI Loans [Member] | Covered Loans [Member] | Single Family Residential Mortgages [Member] | 101% - 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 3.2 | 3.6 |
Non-PCI Loans [Member] | Covered Loans [Member] | Single Family Residential Mortgages [Member] | 80% - 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 281.7 | 449.3 |
Non-PCI Loans [Member] | Covered Loans [Member] | Single Family Residential Mortgages [Member] | Less than 80% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 1,559 | 1,621 |
Non-PCI Loans [Member] | Covered Loans [Member] | Reverse Mortgages Portfolio [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 443.6 | 462.6 |
Non-PCI Loans [Member] | Covered Loans [Member] | Reverse Mortgages Portfolio [Member] | Greater than 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 0.6 | 1 |
Non-PCI Loans [Member] | Covered Loans [Member] | Reverse Mortgages Portfolio [Member] | 101% - 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 1.1 | 2.5 |
Non-PCI Loans [Member] | Covered Loans [Member] | Reverse Mortgages Portfolio [Member] | 80% - 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 26.5 | 26.5 |
Non-PCI Loans [Member] | Covered Loans [Member] | Reverse Mortgages Portfolio [Member] | Less than 80% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 415.4 | 432.6 |
Non-PCI Loans [Member] | Non-covered Loans [Member] | Single Family Residential Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 1,784.5 | 1,439.2 |
Non-PCI Loans [Member] | Non-covered Loans [Member] | Single Family Residential Mortgages [Member] | Greater than 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 13.7 | 0.8 |
Non-PCI Loans [Member] | Non-covered Loans [Member] | Single Family Residential Mortgages [Member] | 101% - 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 14.3 | 0.2 |
Non-PCI Loans [Member] | Non-covered Loans [Member] | Single Family Residential Mortgages [Member] | 80% - 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 34.3 | 14.3 |
Non-PCI Loans [Member] | Non-covered Loans [Member] | Single Family Residential Mortgages [Member] | Less than 80% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 1,720 | 1,416.1 |
Non-PCI Loans [Member] | Non-covered Loans [Member] | Single Family Residential Mortgages [Member] | N/A [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 2.2 | 7.8 |
Non-PCI Loans [Member] | Non-covered Loans [Member] | Reverse Mortgages Portfolio [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 364.3 | 360.3 |
Non-PCI Loans [Member] | Non-covered Loans [Member] | Reverse Mortgages Portfolio [Member] | Greater than 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 7.6 | 3.9 |
Non-PCI Loans [Member] | Non-covered Loans [Member] | Reverse Mortgages Portfolio [Member] | 101% - 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 11.7 | 6.5 |
Non-PCI Loans [Member] | Non-covered Loans [Member] | Reverse Mortgages Portfolio [Member] | 80% - 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 40.8 | 37.4 |
Non-PCI Loans [Member] | Non-covered Loans [Member] | Reverse Mortgages Portfolio [Member] | Less than 80% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | $ 304.2 | $ 312.5 |
Loans (Schedule Of Covered Loan
Loans (Schedule Of Covered Loans By Segment) (Details) - Consumer And Community Banking [Member] - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Covered Loans [Line Items] | ||
Consumer and Community Banking | loans HFI at carrying value | $ 4,523.8 | $ 4,934.5 |
PCI Loans [Member] | ||
Covered Loans [Line Items] | ||
Consumer and Community Banking | loans HFI at carrying value | 2,234.7 | 2,396.9 |
Non-PCI Loans [Member] | ||
Covered Loans [Line Items] | ||
Consumer and Community Banking | loans HFI at carrying value | $ 2,289.1 | $ 2,537.6 |
Loans (Finance And Held For Sal
Loans (Finance And Held For Sale Receivables - Delinquency Status) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 300.7 | $ 342.7 |
Current | 29,549 | 30,618.6 |
Total Finance Receivables | 32,279.9 | 33,656.8 |
30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 132.9 | 180.1 |
60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 71.1 | 58.9 |
90 Days Or Greater [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 96.7 | 103.7 |
Transportation Finance [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4.5 | 29.4 |
Current | 3,254.3 | 3,532.2 |
Total Finance Receivables | 3,258.8 | 3,561.6 |
Transportation Finance [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1.4 | 9.9 |
Transportation Finance [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1 | 2 |
Transportation Finance [Member] | 90 Days Or Greater [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2.1 | 17.5 |
Commercial Banking [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 198 | 213.8 |
Current | 20,577.3 | 20,954.1 |
Total Finance Receivables | 20,896.4 | 21,331.9 |
Commercial Banking [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 93.5 | 133 |
Commercial Banking [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 59.4 | 32.8 |
Commercial Banking [Member] | 90 Days Or Greater [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 45.1 | 48 |
Consumer And Community Banking [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 72.8 | 25 |
Current | 4,789.1 | 4,689 |
Total Finance Receivables | 7,171 | 7,245.5 |
Consumer And Community Banking [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 31.1 | 18.5 |
Consumer And Community Banking [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7.2 | 2 |
Consumer And Community Banking [Member] | 90 Days Or Greater [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 34.5 | 4.5 |
Non-Strategic Portfolios [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 25.4 | 74.5 |
Current | 928.3 | 1,443.3 |
Total Finance Receivables | 953.7 | 1,517.8 |
Non-Strategic Portfolios [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6.9 | 18.7 |
Non-Strategic Portfolios [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3.5 | 22.1 |
Non-Strategic Portfolios [Member] | 90 Days Or Greater [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 15 | 33.7 |
Aerospace [Member] | Transportation Finance [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0.5 | 16.8 |
Current | 1,590.6 | 1,745.5 |
Total Finance Receivables | 1,591.1 | 1,762.3 |
Aerospace [Member] | Transportation Finance [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1.4 | |
Aerospace [Member] | Transportation Finance [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0.3 | |
Aerospace [Member] | Transportation Finance [Member] | 90 Days Or Greater [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0.2 | 15.4 |
Rail [Member] | Transportation Finance [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4 | 12.6 |
Current | 102.3 | 108.3 |
Total Finance Receivables | 106.3 | 120.9 |
Rail [Member] | Transportation Finance [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1.4 | 8.5 |
Rail [Member] | Transportation Finance [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0.7 | 2 |
Rail [Member] | Transportation Finance [Member] | 90 Days Or Greater [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1.9 | 2.1 |
Maritime Finance [Member] | Transportation Finance [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,561.4 | 1,678.4 |
Total Finance Receivables | 1,561.4 | 1,678.4 |
Commercial Finance [Member] | Commercial Banking [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 67 | 20.5 |
Current | 8,467.9 | 9,342.3 |
Total Finance Receivables | 8,580 | 9,432.2 |
Commercial Finance [Member] | Commercial Banking [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 34.9 | |
Commercial Finance [Member] | Commercial Banking [Member] | 90 Days Or Greater [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 32.1 | 20.5 |
Real Estate Finance [Member] | Commercial Banking [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0.1 | 2.6 |
Current | 5,337.8 | 5,260.4 |
Total Finance Receivables | 5,413.9 | 5,357.6 |
Real Estate Finance [Member] | Commercial Banking [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1.9 | |
Real Estate Finance [Member] | Commercial Banking [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0.1 | |
Real Estate Finance [Member] | Commercial Banking [Member] | 90 Days Or Greater [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0.7 | |
Business Capital [Member] | Commercial Banking [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 130.9 | 190.7 |
Current | 6,771.6 | 6,351.4 |
Total Finance Receivables | 6,902.5 | 6,542.1 |
Business Capital [Member] | Commercial Banking [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 93.5 | 131.1 |
Business Capital [Member] | Commercial Banking [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 24.4 | 32.8 |
Business Capital [Member] | Commercial Banking [Member] | 90 Days Or Greater [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 13 | 26.8 |
Legacy Consumer Mortgages [Member] | Consumer And Community Banking [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 65.1 | 21.6 |
Current | 2,670.9 | 2,923.8 |
Total Finance Receivables | 5,040.8 | 5,471.6 |
Legacy Consumer Mortgages [Member] | Consumer And Community Banking [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 24.4 | 15.8 |
Legacy Consumer Mortgages [Member] | Consumer And Community Banking [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7.2 | 1.7 |
Legacy Consumer Mortgages [Member] | Consumer And Community Banking [Member] | 90 Days Or Greater [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 33.5 | 4.1 |
Other Consumer Banking [Member] | Consumer And Community Banking [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7.7 | 3.4 |
Current | 2,118.2 | 1,765.2 |
Total Finance Receivables | 2,130.2 | 1,773.9 |
Other Consumer Banking [Member] | Consumer And Community Banking [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6.7 | 2.7 |
Other Consumer Banking [Member] | Consumer And Community Banking [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0.3 | |
Other Consumer Banking [Member] | Consumer And Community Banking [Member] | 90 Days Or Greater [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1 | 0.4 |
PCI Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance Receivables | 2,430.2 | 2,695.5 |
PCI Loans [Member] | Commercial Banking [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance Receivables | 121.1 | 164 |
PCI Loans [Member] | Consumer And Community Banking [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance Receivables | 2,309.1 | 2,531.5 |
PCI Loans [Member] | Commercial Finance [Member] | Commercial Banking [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance Receivables | 45.1 | 69.4 |
PCI Loans [Member] | Real Estate Finance [Member] | Commercial Banking [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance Receivables | 76 | 94.6 |
PCI Loans [Member] | Legacy Consumer Mortgages [Member] | Consumer And Community Banking [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance Receivables | 2,304.8 | 2,526.2 |
PCI Loans [Member] | Other Consumer Banking [Member] | Consumer And Community Banking [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance Receivables | $ 4.3 | $ 5.3 |
Loans (Finance Receivables On N
Loans (Finance Receivables On Non-accrual Status) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | $ 288.5 | $ 267.7 |
OREO and Repossessed assets | 88.7 | 127.3 |
Total non-performing assets | 377.2 | 395 |
Commercial loans past due 90 days or more accruing | 5.2 | 15.6 |
Consumer loans past due 90 days or more accruing | 24.4 | 0.2 |
Total Accruing loans past due 90 days or more | 29.6 | 15.8 |
Held For Investment [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 230.3 | 199.7 |
Held For Sale [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 58.2 | 68 |
Transportation Finance [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 54.4 | 15.4 |
Transportation Finance [Member] | Held For Investment [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 49.4 | 15.4 |
Transportation Finance [Member] | Held For Sale [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 5 | |
Transportation Finance [Member] | Aerospace [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 5 | 15.4 |
Transportation Finance [Member] | Aerospace [Member] | Held For Investment [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 15.4 | |
Transportation Finance [Member] | Aerospace [Member] | Held For Sale [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 5 | |
Transportation Finance [Member] | Maritime Finance [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 49.4 | |
Transportation Finance [Member] | Maritime Finance [Member] | Held For Investment [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 49.4 | |
Commercial Banking [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 179.9 | 191.1 |
Commercial Banking [Member] | Held For Investment [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 166.7 | 180.1 |
Commercial Banking [Member] | Held For Sale [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 13.2 | 11 |
Commercial Banking [Member] | Commercial Finance [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 131.1 | 131.5 |
Commercial Banking [Member] | Commercial Finance [Member] | Held For Investment [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 117.9 | 120.5 |
Commercial Banking [Member] | Commercial Finance [Member] | Held For Sale [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 13.2 | 11 |
Commercial Banking [Member] | Real Estate Finance [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 6.9 | 3.6 |
Commercial Banking [Member] | Real Estate Finance [Member] | Held For Investment [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 6.9 | 3.6 |
Commercial Banking [Member] | Business Capital [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 41.9 | 56 |
Commercial Banking [Member] | Business Capital [Member] | Held For Investment [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 41.9 | 56 |
Consumer And Community Banking [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 14.2 | 5.2 |
Consumer And Community Banking [Member] | Held For Investment [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 14.2 | 4.2 |
Consumer And Community Banking [Member] | Held For Sale [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 1 | |
Consumer And Community Banking [Member] | Legacy Consumer Mortgages [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 13.9 | 4.8 |
Consumer And Community Banking [Member] | Legacy Consumer Mortgages [Member] | Held For Investment [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 13.9 | 4.2 |
Consumer And Community Banking [Member] | Legacy Consumer Mortgages [Member] | Held For Sale [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 0.6 | |
Consumer And Community Banking [Member] | Other Consumer Banking [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 0.3 | 0.4 |
Consumer And Community Banking [Member] | Other Consumer Banking [Member] | Held For Investment [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 0.3 | |
Consumer And Community Banking [Member] | Other Consumer Banking [Member] | Held For Sale [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 0.4 | |
Non-Strategic Portfolios [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 40 | 56 |
Non-Strategic Portfolios [Member] | Held For Sale [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | $ 40 | $ 56 |
Loans (Schedule Of Loans In Pro
Loans (Schedule Of Loans In Process Of Foreclosure) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Loans In Process Of Foreclosure [Line Items] | ||
Loans in process of foreclosure, amount | $ 331.2 | $ 391 |
PCI Loans [Member] | ||
Loans In Process Of Foreclosure [Line Items] | ||
Loans in process of foreclosure, amount | 221.6 | 320 |
Non-PCI Loans [Member] | ||
Loans In Process Of Foreclosure [Line Items] | ||
Loans in process of foreclosure, amount | 109.6 | 71 |
OREO [Member] | ||
Loans In Process Of Foreclosure [Line Items] | ||
Loans in process of foreclosure, amount | $ 83.5 | $ 118 |
Loans (Impaired Loans) (Details
Loans (Impaired Loans) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Financing Receivable, Impaired [Line Items] | |||||
Recorded investment, total | $ 2,607.4 | $ 2,607.4 | $ 2,845.1 | ||
Unpaid principal balance, total | 3,762 | 3,762 | 4,149.8 | ||
Related allowance | 47.6 | 47.6 | 32.7 | ||
Average recorded investment, total | 2,626.5 | $ 1,512.6 | 2,709.1 | $ 787.8 | 1,199.3 |
Interest income recorded | 0.5 | 0.2 | 1.4 | 0.8 | 1.5 |
Interest income recognized using cash basis method | 0.2 | 0.6 | 0.1 | 0.5 | |
Impaired Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded investment, total | 177.2 | 177.2 | 149.6 | ||
Unpaid principal balance, total | 205.1 | 205.1 | 172.5 | ||
Related allowance | 33.8 | 33.8 | 27.8 | ||
Average recorded investment, total | 167.2 | 91 | 165.3 | 76.7 | 91.3 |
Loans Impaired At Acquisition Date And Convenience Date [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded investment, total | 2,430.2 | 2,430.2 | 2,695.5 | ||
Unpaid principal balance, total | 3,556.9 | 3,556.9 | 3,977.3 | ||
Related allowance | 13.8 | 13.8 | 4.9 | ||
Average recorded investment, total | 2,459.3 | 1,421.6 | 2,543.8 | 711.1 | 1,108 |
Non-Strategic Portfolios [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance, average recorded investment | 6.1 | 9.2 | 7.3 | ||
With related allowance, average recorded investment | 11.1 | 9.1 | 7.3 | ||
Aerospace [Member] | Transportation Finance [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With related allowance, recorded investment | 15.4 | ||||
With related allowance, unpaid principal balance | 15.4 | ||||
Related allowance | 0.4 | ||||
With no related allowance, average recorded investment | 0.2 | ||||
With related allowance, average recorded investment | 4.7 | 3.8 | 2.4 | 5 | |
Maritime Finance [Member] | Transportation Finance [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With related allowance, recorded investment | 49.4 | 49.4 | |||
With related allowance, unpaid principal balance | 49.4 | 49.4 | |||
Related allowance | 6.8 | 6.8 | |||
With related allowance, average recorded investment | 24.7 | 12.3 | |||
Commercial Finance [Member] | Commercial Banking [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance, recorded investment | 17.5 | 17.5 | 15.4 | ||
With related allowance, recorded investment | 100.4 | 100.4 | 102.6 | ||
With no related allowance, unpaid principal balance | 34 | 34 | 22.8 | ||
With related allowance, unpaid principal balance | 107.7 | 107.7 | 112.1 | ||
Related allowance | 23.8 | 23.8 | 22.7 | ||
With no related allowance, average recorded investment | 13.6 | 7.7 | 13.2 | 4.3 | 6.5 |
With related allowance, average recorded investment | 113.6 | 45.5 | 117.1 | 40.8 | 53.2 |
Business Capital [Member] | Commercial Banking [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance, recorded investment | 2 | 2 | 6.3 | ||
With related allowance, recorded investment | 4 | 4 | 9.7 | ||
With no related allowance, unpaid principal balance | 6.1 | 6.1 | 9.7 | ||
With related allowance, unpaid principal balance | 4 | 4 | 11.7 | ||
Related allowance | 2.8 | 2.8 | 4.7 | ||
With no related allowance, average recorded investment | 5.5 | 5.6 | 6.2 | 5.8 | 5.9 |
With related allowance, average recorded investment | 5.9 | 8.6 | 8.6 | 4.3 | 5.4 |
Real Estate Finance [Member] | Commercial Banking [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance, recorded investment | 0.8 | 0.8 | 0.2 | ||
With related allowance, recorded investment | 3.1 | 3.1 | |||
With no related allowance, unpaid principal balance | 0.8 | 0.8 | 0.8 | ||
With related allowance, unpaid principal balance | 3.1 | 3.1 | |||
Related allowance | 0.4 | 0.4 | |||
With no related allowance, average recorded investment | 0.8 | $ 1.7 | 1.5 | $ 0.8 | $ 0.7 |
With related allowance, average recorded investment | $ 3.1 | $ 2.4 |
Loans (Purchased Credit Impaire
Loans (Purchased Credit Impaired Loans With Deteriorated Credit Quality) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | $ 3,762 | $ 4,149.8 |
Allowance for Loan Losses | 47.6 | 32.7 |
Commercial Banking [Member] | Commercial Finance [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Allowance for Loan Losses | 23.8 | 22.7 |
Commercial Banking [Member] | Real Estate Finance [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Allowance for Loan Losses | 0.4 | |
Loans Acquired with Deteriorated Credit Quality [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 3,556.9 | 3,977.3 |
Carrying Value | 2,430.2 | 2,695.5 |
Allowance for Loan Losses | 13.8 | 4.9 |
Loans Acquired with Deteriorated Credit Quality [Member] | Commercial Banking [Member] | Commercial Finance [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 74.9 | 115.5 |
Carrying Value | 45.1 | 69.4 |
Allowance for Loan Losses | 1.8 | 2.5 |
Loans Acquired with Deteriorated Credit Quality [Member] | Commercial Banking [Member] | Real Estate Finance [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 122.1 | 161.1 |
Carrying Value | 76 | 94.6 |
Allowance for Loan Losses | 3.8 | 0.6 |
Loans Acquired with Deteriorated Credit Quality [Member] | Consumer And Community Banking [Member] | Other Consumer Banking [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 5.6 | 6.8 |
Carrying Value | 4.3 | 5.3 |
Loans Acquired with Deteriorated Credit Quality [Member] | Consumer And Community Banking [Member] | Legacy Consumer Mortgages [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 3,354.3 | 3,693.9 |
Carrying Value | 2,304.8 | 2,526.2 |
Allowance for Loan Losses | $ 8.2 | $ 1.8 |
Loans (Summary Of Commercial PC
Loans (Summary Of Commercial PCI Loans By Credit Quality) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | $ 25,495.5 | $ 26,747.6 |
Commercial PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 121.1 | 164 |
Commercial PCI Loans [Member] | Non-Criticized [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 41.1 | 38.5 |
Commercial PCI Loans [Member] | Criticized [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 80 | 125.5 |
Commercial Finance [Member] | Commercial PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 45.1 | 69.4 |
Commercial Finance [Member] | Commercial PCI Loans [Member] | Non-Criticized [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 5.2 | 5.3 |
Commercial Finance [Member] | Commercial PCI Loans [Member] | Criticized [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 39.9 | 64.1 |
Real Estate Finance [Member] | Commercial PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 76 | 94.6 |
Real Estate Finance [Member] | Commercial PCI Loans [Member] | Non-Criticized [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 35.9 | 33.2 |
Real Estate Finance [Member] | Commercial PCI Loans [Member] | Criticized [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | $ 40.1 | $ 61.4 |
Loans (Schedule Of Changes To T
Loans (Schedule Of Changes To The Accretable Yield For PCI Loans) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | |
Loans [Abstract] | |||
Beginning Balance | $ 1,274.8 | $ 1,254.8 | $ 1,294 |
Accretion into interest income | (48.4) | (32.1) | (149.3) |
Reclassfication from non-accretable difference | 35.8 | 0.1 | 146.2 |
Disposals and Other | (5.4) | (5.9) | (34.1) |
Ending Balance | $ 1,256.8 | $ 1,216.9 | $ 1,256.8 |
Loans (Estimated Future Advance
Loans (Estimated Future Advances To Reverse Mortgages) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Summary Of Estimated Future Advances To Reverse Mortgages [Line Items] | |
FDIC required funding amount of reverse mortgages | $ 54 |
Reverse Mortgages Portfolio [Member] | |
Summary Of Estimated Future Advances To Reverse Mortgages [Line Items] | |
2,016 | 3.7 |
2,017 | 13.4 |
2,018 | 11.2 |
2,019 | 9.3 |
2,020 | 7.7 |
Years 2021 - 2025 | 21.6 |
Years 2026 - 2030 | 7 |
Years 2031 - 2035 | 1.9 |
Thereafter | 0.5 |
Total | $ 76.3 |
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 | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Beginning balance | $ 399.4 | $ 350.9 | $ 360.2 | $ 346.4 | |
Provision for credit losses | 46.2 | 49.9 | 173.6 | 102.9 | |
Other | (0.5) | (4.5) | 3.6 | (8.6) | |
Gross charge-offs | (30.5) | (67.4) | (131.7) | (128.2) | |
Recoveries | 7.1 | 6.1 | 16 | 22.5 | |
Allowance balance - end of period | 421.7 | 335 | 421.7 | 335 | |
Allowance balance: Loans individually evaluated for impairment | 33.8 | 18.3 | 33.8 | 18.3 | |
Allowance balance: Loans collectively evaluated for impairment | 374.1 | 316.3 | 374.1 | 316.3 | |
Allowance for loan losses | 421.7 | 335 | |||
Other reserves | 47.7 | 40.8 | 47.7 | 40.8 | |
Finance receivables: Loans individually evaluated for impairment | 177.2 | 102.2 | 177.2 | 102.2 | |
Finance receivables: Loans collectively evaluated for impairment | 27,310.8 | 29,460.9 | 27,310.8 | 29,460.9 | |
Finance receivables: Loans acquired with deteriorated credit quality | 25,495.5 | 25,495.5 | $ 26,747.6 | ||
Ending balance | $ 29,918.2 | $ 32,406.2 | $ 29,918.2 | $ 32,406.2 | |
Percent of loans to total loans | 100.00% | 100.00% | 100.00% | 100.00% | |
Loans Acquired with Deteriorated Credit Quality [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans acquired with deteriorated credit quality--Allowance | $ 13.8 | $ 0.4 | $ 13.8 | $ 0.4 | |
Finance receivables: Loans acquired with deteriorated credit quality | 2,430.2 | 2,843.1 | 2,430.2 | 2,843.1 | |
Transportation Finance [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Beginning balance | 51.3 | 33.4 | 39.4 | 26.5 | |
Provision for credit losses | 5.5 | (1.6) | 43.8 | 5.9 | |
Other | 0.1 | (0.2) | 0.1 | ||
Gross charge-offs | (2.1) | (0.1) | (28.3) | (0.8) | |
Recoveries | 0.1 | ||||
Allowance balance - end of period | 54.7 | 31.8 | 54.7 | 31.8 | |
Allowance balance: Loans individually evaluated for impairment | 6.8 | 0.9 | 6.8 | 0.9 | |
Allowance balance: Loans collectively evaluated for impairment | 47.9 | 30.9 | 47.9 | 30.9 | |
Allowance for loan losses | 54.7 | 31.8 | |||
Other reserves | 0.4 | 0.4 | |||
Finance receivables: Loans individually evaluated for impairment | 49.4 | 4.7 | 49.4 | 4.7 | |
Finance receivables: Loans collectively evaluated for impairment | 2,174.8 | 3,300.8 | 2,174.8 | 3,300.8 | |
Finance receivables: Loans acquired with deteriorated credit quality | 3,258.8 | 3,258.8 | 3,561.6 | ||
Ending balance | $ 2,224.2 | $ 3,305.5 | $ 2,224.2 | $ 3,305.5 | |
Percent of loans to total loans | 7.40% | 10.20% | 7.40% | 10.20% | |
Transportation Finance [Member] | Loans Acquired with Deteriorated Credit Quality [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans acquired with deteriorated credit quality--Allowance | |||||
Finance receivables: Loans acquired with deteriorated credit quality | |||||
Commercial Banking [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Beginning balance | 327.6 | 277.6 | 310.5 | 282.5 | |
Provision for credit losses | 39.2 | 43.2 | 124.1 | 85.6 | |
Other | (2.8) | (3.1) | (4.1) | (5.9) | |
Gross charge-offs | (27.7) | (22.8) | (101.5) | (75.2) | |
Recoveries | 6.2 | 4.3 | 13.5 | 12.2 | |
Allowance balance - end of period | 342.5 | 299.2 | 342.5 | 299.2 | |
Allowance balance: Loans individually evaluated for impairment | 27 | 17.4 | 27 | 17.4 | |
Allowance balance: Loans collectively evaluated for impairment | 309.9 | 281.8 | 309.9 | 281.8 | |
Allowance for loan losses | 342.5 | 299.2 | |||
Other reserves | 47.1 | 40.6 | 47.1 | 40.6 | |
Finance receivables: Loans individually evaluated for impairment | 127.8 | 97.5 | 127.8 | 97.5 | |
Finance receivables: Loans collectively evaluated for impairment | 20,315.8 | 21,553.3 | 20,315.8 | 21,553.3 | |
Finance receivables: Loans acquired with deteriorated credit quality | 20,896.4 | 20,896.4 | 21,331.9 | ||
Ending balance | $ 20,564.7 | $ 21,849.5 | $ 20,564.7 | $ 21,849.5 | |
Percent of loans to total loans | 68.80% | 67.40% | 68.80% | 67.40% | |
Gross charge-offs charged directly into specific allowance for loan losses | $ 4 | $ 12 | $ 27 | $ 17 | |
Commercial Banking [Member] | Loans Acquired with Deteriorated Credit Quality [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans acquired with deteriorated credit quality--Allowance | 5.6 | 5.6 | |||
Finance receivables: Loans acquired with deteriorated credit quality | 121.1 | 198.7 | 121.1 | 198.7 | |
Consumer And Community Banking [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Beginning balance | 20.5 | 10.3 | |||
Provision for credit losses | 1.6 | 5.1 | 5.8 | 5.1 | |
Other | 2.3 | 7.9 | |||
Gross charge-offs | (0.7) | (1.6) | (1.9) | (1.6) | |
Recoveries | 0.8 | 0.5 | 2.4 | 0.5 | |
Allowance balance - end of period | 24.5 | 4 | 24.5 | 4 | |
Allowance balance: Loans individually evaluated for impairment | |||||
Allowance balance: Loans collectively evaluated for impairment | 16.3 | 3.6 | 16.3 | 3.6 | |
Allowance for loan losses | 24.5 | 4 | |||
Other reserves | 0.2 | 0.2 | |||
Finance receivables: Loans individually evaluated for impairment | |||||
Finance receivables: Loans collectively evaluated for impairment | 4,820.2 | 4,606.8 | 4,820.2 | 4,606.8 | |
Ending balance | $ 7,129.3 | $ 7,251.2 | $ 7,129.3 | $ 7,251.2 | |
Percent of loans to total loans | 23.80% | 22.40% | 23.80% | 22.40% | |
Consumer And Community Banking [Member] | Loans Acquired with Deteriorated Credit Quality [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans acquired with deteriorated credit quality--Allowance | $ 8.2 | $ 0.4 | $ 8.2 | $ 0.4 | |
Finance receivables: Loans acquired with deteriorated credit quality | 2,309.1 | 2,644.4 | 2,309.1 | 2,644.4 | |
Non-Strategic Portfolios [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Beginning balance | 39.9 | 37.4 | |||
Provision for credit losses | (0.1) | 3.2 | (0.1) | 6.3 | |
Other | (1.5) | (2.8) | |||
Gross charge-offs | (42.9) | (50.6) | |||
Recoveries | 0.1 | 1.3 | 0.1 | 9.7 | |
Allowance balance - end of period | |||||
Allowance balance: Loans individually evaluated for impairment | |||||
Allowance balance: Loans collectively evaluated for impairment | |||||
Allowance for loan losses | |||||
Other reserves | 0.2 | 0.2 | |||
Finance receivables: Loans individually evaluated for impairment | |||||
Finance receivables: Loans collectively evaluated for impairment | |||||
Finance receivables: Loans acquired with deteriorated credit quality | 953.7 | 953.7 | $ 1,517.8 | ||
Ending balance | |||||
Percent of loans to total loans | 0.00% | 0.00% | 0.00% | 0.00% | |
Non-Strategic Portfolios [Member] | Loans Acquired with Deteriorated Credit Quality [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans acquired with deteriorated credit quality--Allowance | |||||
Finance receivables: Loans acquired with deteriorated credit quality | |||||
Corporate And Other [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Beginning balance | |||||
Provision for credit losses | |||||
Other | |||||
Gross charge-offs | |||||
Recoveries | |||||
Allowance balance - end of period | |||||
Allowance balance: Loans individually evaluated for impairment | |||||
Allowance balance: Loans collectively evaluated for impairment | |||||
Allowance for loan losses | |||||
Other reserves | |||||
Finance receivables: Loans individually evaluated for impairment | |||||
Finance receivables: Loans collectively evaluated for impairment | |||||
Ending balance | |||||
Percent of loans to total loans | 0.00% | 0.00% | 0.00% | 0.00% | |
Corporate And Other [Member] | Loans Acquired with Deteriorated Credit Quality [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans acquired with deteriorated credit quality--Allowance | |||||
Finance receivables: Loans acquired with deteriorated credit quality |
Indemnification Assets (Narrati
Indemnification Assets (Narrative) (Details) $ in Millions | Aug. 02, 2015USD ($) | Jul. 31, 2017USD ($) | Sep. 30, 2016USD ($)claimsegment | Dec. 31, 2015USD ($) |
Indemnification Assets [Line Items] | ||||
Number of days before reimbursement approval by FDIC | 60 days | |||
Amount FDIC indemnifies against losses | $ 362.2 | $ 414.8 | ||
OneWest Bank [Member] | ||||
Indemnification Assets [Line Items] | ||||
Acquisition date | Aug. 3, 2015 | |||
OneWest Bank [Member] | Minimum [Member] | ||||
Indemnification Assets [Line Items] | ||||
FDIC fund advances threshold | $ 200 | |||
IndyMac Transaction [Member] | ||||
Indemnification Assets [Line Items] | ||||
Number of components to indemnification program | segment | 3 | |||
Amount FDIC indemnifies against losses | $ 362.2 | 414.5 | ||
FDIC fund advances threshold | 200 | |||
Advance on reverse mortgage loan | 145.7 | 152.4 | ||
Cumulative loss submissions and reimbursements | 1.8 | |||
Amount reinbursed by FDIC | $ 5.7 | $ 1.2 | ||
IndyMac Transaction [Member] | Single-family Residential Portfolio (SFR) [Member] | ||||
Indemnification Assets [Line Items] | ||||
Loss share agreements expiration date | March 2,019 | |||
First loss tranche | $ 2,551 | |||
Excess losses reimbursed by FDIC, percent | 80.00% | |||
Number of submitted claims | claim | 0 | |||
IndyMac Transaction [Member] | Single-family Residential Portfolio (SFR) [Member] | Future [Member] | ||||
Indemnification Assets [Line Items] | ||||
First loss tranche | $ 3,826 | |||
Excess losses reimbursed by FDIC, percent | 95.00% | |||
IndyMac Transaction [Member] | Reverse Mortgage Indemnification Assets [Member] | ||||
Indemnification Assets [Line Items] | ||||
Amount FDIC indemnifies against losses | $ 200 | |||
Amount in claims | 0.2 | |||
Cumulative loss submissions | 11.2 | |||
Cumulative reimbursements related to reverse mortgage loans sold to agencies | $ 10.7 | |||
First Federal Transaction [Member] | ||||
Indemnification Assets [Line Items] | ||||
Amount FDIC indemnifies against losses | $ 0 | |||
First Federal Transaction [Member] | Commercial Loan [Member] | ||||
Indemnification Assets [Line Items] | ||||
FDIC coverage expiration date | Dec. 1, 2014 | |||
Extendable period | 3 years | |||
First Federal Transaction [Member] | Single-family Residential Portfolio (SFR) [Member] | ||||
Indemnification Assets [Line Items] | ||||
Loss share agreements expiration date | December 2,019 | |||
FDIC coverage expiration date | Dec. 1, 2019 | |||
La Jolla Transaction [Member] | ||||
Indemnification Assets [Line Items] | ||||
Excess losses reimbursed by FDIC, percent | 80.00% | |||
Amount FDIC indemnifies against losses | 0.3 | |||
Threshold of reimbused cumulative losses since acquisition date | $ 1,007 | |||
FDIC true-up liability | $ 61.3 | $ 56.9 | ||
La Jolla Transaction [Member] | Commercial Loan [Member] | ||||
Indemnification Assets [Line Items] | ||||
Loss share agreements expiration date | March 2,015 | |||
Extendable period | 3 years | |||
La Jolla Transaction [Member] | Single-family Residential Portfolio (SFR) [Member] | ||||
Indemnification Assets [Line Items] | ||||
Loss share agreements expiration date | February 2,020 | |||
FDIC [Member] | First Federal Transaction [Member] | ||||
Indemnification Assets [Line Items] | ||||
First loss tranche | $ 932 |
Indemnification Assets (Carryin
Indemnification Assets (Carrying Value Of Recognized Indemnification Assets And Related Receivables/Payables) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Schedule Of Estimated Fair Value And Range Of Value For Indemnification Assets [Line Items] | ||
Loan indemnification | $ 249 | $ 338.9 |
Reverse mortgage indemnification | 10.7 | 10.3 |
Agency claims indemnification | 102.5 | 65.6 |
Total | 362.2 | 414.8 |
Receivable from (Payable to) the FDIC | 4 | 16.7 |
IndyMac Transaction [Member] | ||
Schedule Of Estimated Fair Value And Range Of Value For Indemnification Assets [Line Items] | ||
Loan indemnification | 249 | 338.6 |
Reverse mortgage indemnification | 10.7 | 10.3 |
Agency claims indemnification | 102.5 | 65.6 |
Total | 362.2 | 414.5 |
Receivable from (Payable to) the FDIC | 5.5 | 18.6 |
Decrease in loan indemnification | 89.6 | |
Claim submissions | 69.1 | |
Other yield and provision for credit losses adjustment | 20.5 | |
Increase in agency claims indemnification | 36.9 | |
La Jolla Transaction [Member] | ||
Schedule Of Estimated Fair Value And Range Of Value For Indemnification Assets [Line Items] | ||
Loan indemnification | 0.3 | |
Total | 0.3 | |
Receivable from (Payable to) the FDIC | $ (1.5) | $ (1.9) |
Indemnification Assets (Submiss
Indemnification Assets (Submission Of Qualifying Losses For Reimbursement From FDIC) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
IndyMac Transaction [Member] | Single-family Residential Portfolio (SFR) [Member] | ||||
Schedule Of Qualifying Losses For Reimbursement [Line Items] | ||||
Unpaid principal balance | $ 3,969 | $ 4,372.8 | ||
Cumulative losses incurred | 3,717.8 | 3,623.4 | ||
Cumulative claims | 3,710.3 | 3,608.4 | ||
Cumulative reimbursement | 884.8 | 802.6 | ||
First Federal Transaction [Member] | ||||
Schedule Of Qualifying Losses For Reimbursement [Line Items] | ||||
Unpaid principal balance | 1,302.3 | 1,456.8 | ||
Cumulative losses incurred | 424.1 | 417.5 | ||
Cumulative claims | 423.8 | 416.2 | ||
Cumulative reimbursement | $ 0 | |||
First Federal Transaction [Member] | Single-family Residential Portfolio (SFR) [Member] | ||||
Schedule Of Qualifying Losses For Reimbursement [Line Items] | ||||
Unpaid principal balance | 1,302.3 | 1,456.8 | ||
Cumulative losses incurred | 415.1 | 408.5 | ||
Cumulative claims | 414.8 | 407.2 | ||
First Federal Transaction [Member] | Commercial Loans Portfolio [Member] | ||||
Schedule Of Qualifying Losses For Reimbursement [Line Items] | ||||
Cumulative losses incurred | 9 | 9 | ||
Cumulative claims | 9 | 9 | ||
La Jolla Transaction [Member] | ||||
Schedule Of Qualifying Losses For Reimbursement [Line Items] | ||||
Unpaid principal balance | 73 | 89.3 | ||
Cumulative losses incurred | 409.9 | 415.7 | ||
Cumulative claims | 409.9 | 415.7 | ||
Cumulative reimbursement | 327.9 | 332.6 | ||
La Jolla Transaction [Member] | Single-family Residential Portfolio (SFR) [Member] | ||||
Schedule Of Qualifying Losses For Reimbursement [Line Items] | ||||
Unpaid principal balance | 73 | 89.3 | ||
Cumulative losses incurred | 56.3 | 56.2 | ||
Cumulative claims | 56.3 | 56.2 | ||
Cumulative reimbursement | 45 | 45 | ||
La Jolla Transaction [Member] | Commercial Loans Portfolio [Member] | ||||
Schedule Of Qualifying Losses For Reimbursement [Line Items] | ||||
Cumulative losses incurred | 353.6 | 359.5 | ||
Cumulative claims | 353.6 | 359.5 | ||
Cumulative reimbursement | $ 282.9 | $ 287.6 | $ 0 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | ||
Realized investment gains excluding losses from OTTI | $ 5.1 | $ 2 | $ 6.6 | $ 6.7 | ||
Interest bearing deposits | [1] | 6,513.1 | 6,513.1 | $ 6,820.3 | ||
OTTI credit-related losses, PCI securities | 0.1 | $ 0 | 2 | |||
OTTI unrealized losses on non-marketable investments | 0 | |||||
OneWest Bank [Member] | Mortgage-Backed Securities [Member] | ||||||
Estimated fair value of purchased credit-impaired securities | 503.1 | 503.1 | 559.6 | |||
Par value of purchased credit-impaired securities | $ 640.9 | $ 640.9 | $ 717.1 | |||
[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 (Schedule
Investment Securities (Schedule Of Investment Securities) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-sale securities | $ 2,764 | $ 2,022.1 |
Securities carried at fair value with changes recorded in net income | 301.3 | 339.7 |
Total investment securities | 3,592.4 | 2,953.8 |
Debt Securities [Member] | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-sale securities | 2,729.2 | 2,007.8 |
Equity Securities [Member] | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-sale securities | 34.8 | 14.3 |
Equity fund holdings and shares issued by customres during loan work out situations | 19 | 28.4 |
FRB and FHLB Securities [Member] | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Total investment securities | 3,592.4 | 2,953.8 |
FRB and FHLB Securities [Member] | Debt Securities [Member] | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-sale securities | 2,729.2 | 2,007.8 |
Held-to-maturity securities | 254.4 | 300.1 |
Securities carried at fair value with changes recorded in net income | 301.3 | 339.7 |
FRB and FHLB Securities [Member] | Equity Securities [Member] | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-sale securities | 34.8 | 14.3 |
Held-to-maturity securities | 253.7 | 263.5 |
FRB and FHLB Securities [Member] | Non-marketable Investments [Member] | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Total investment securities | $ 272.7 | $ 291.9 |
Minimum [Member] | Equity Securities [Member] | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Percentage of non-marketable equity method ownership interets | 3.00% | 3.00% |
Investment Securities (Schedu67
Investment Securities (Schedule Of Interest And Dividend Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Dividends - investments | $ 3.2 | $ 4 | $ 9.6 | $ 5 |
Total interest and dividends | 32.5 | 23.5 | 95.1 | 41.1 |
Investments [Member] | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Interest income | 19.8 | 4.5 | 58.8 | 11.9 |
Interest Bearing Deposits [Member] | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Interest income | $ 9.5 | $ 15 | $ 26.7 | $ 24.2 |
Investment Securities (Amortize
Investment Securities (Amortized Cost And Fair Value Of Securities Available-For-Sale) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 2,742.7 | $ 2,033.6 |
Gross Unrealized Gains | 22.5 | 0.5 |
Gross Unrealized Losses | (1.2) | (12) |
Fair Value | 2,764 | 2,022.1 |
U.S. Government Agency Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 838.3 | 148.4 |
Gross Unrealized Gains | 5.9 | |
Gross Unrealized Losses | (0.2) | (0.9) |
Fair Value | 844 | 147.5 |
Non-Agency Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 495.1 | 573.9 |
Gross Unrealized Gains | 15.8 | 0.4 |
Gross Unrealized Losses | (0.5) | (7.2) |
Fair Value | 510.4 | 567.1 |
U.S. Government Agency Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 874.9 | 996.8 |
Gross Unrealized Gains | 0.2 | |
Gross Unrealized Losses | (0.3) | (3.7) |
Fair Value | 874.8 | 993.1 |
U.S. Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 99.7 | |
Gross Unrealized Gains | 0.3 | |
Fair Value | 100 | |
Supranational And Foreign Government Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 400 | 300.1 |
Fair Value | 400 | 300.1 |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,708 | 2,019.2 |
Gross Unrealized Gains | 22.2 | 0.4 |
Gross Unrealized Losses | (1) | (11.8) |
Fair Value | 2,729.2 | 2,007.8 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 34.7 | 14.4 |
Gross Unrealized Gains | 0.3 | 0.1 |
Gross Unrealized Losses | (0.2) | (0.2) |
Fair Value | $ 34.8 | $ 14.3 |
Investment Securities (Amorti69
Investment Securities (Amortized Cost And Fair Value Of Debt Securities Available-For-Sale By Contractual Maturity Dates) (Details) $ in Millions | Sep. 30, 2016USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Total debt securities available-for-sale, Amortized Cost | $ 2,708 |
Total debt securities available-for-sale, Fair Value | $ 2,729.2 |
Average Yield | 2.17% |
U.S. Government Agency Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Due after 10 years, Amortized Cost | $ 838.3 |
Total debt securities available-for-sale, Amortized Cost | 838.3 |
Due after 10 years, Fair Value | 844 |
Total debt securities available-for-sale, Fair Value | $ 844 |
Due after 10 years, Average Yield | 2.03% |
Average Yield | 2.03% |
Non-Agency Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
After 5 but within 10 years, Amortized Cost | $ 23.3 |
Due after 10 years, Amortized Cost | 471.8 |
Total debt securities available-for-sale, Amortized Cost | 495.1 |
After 5 but within 10 years, Fair Value | 24.1 |
Due after 10 years, Fair Value | 486.3 |
Total debt securities available-for-sale, Fair Value | $ 510.4 |
After 5 but within 10 years, Average Yield | 4.93% |
Due after 10 years, Average Yield | 5.85% |
Average Yield | 5.81% |
U.S. Government Agency Obligations [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
After 1 but within 5 years, Amortized Cost | $ 874.9 |
Total debt securities available-for-sale, Amortized Cost | 874.9 |
After 1 but within 5 years, Fair Value | 874.8 |
Total debt securities available-for-sale, Fair Value | $ 874.8 |
After 1 but within 5 years, Average Yield | 1.23% |
Average Yield | 1.23% |
U.S. Treasury Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
After 1 but within 5 years, Amortized Cost | $ 99.7 |
Total debt securities available-for-sale, Amortized Cost | 99.7 |
After 1 but within 5 years, Fair Value | 100 |
Total debt securities available-for-sale, Fair Value | $ 100 |
After 1 but within 5 years, Average Yield | 0.93% |
Average Yield | 0.93% |
Supranational And Foreign Government Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Due within 1 year, Amortized Cost | $ 400 |
Total debt securities available-for-sale, Amortized Cost | 400 |
Due within 1 year, Fair Value | 400 |
Total debt securities available-for-sale, Fair Value | $ 400 |
Due within 1 year, Average Yield | 0.31% |
Average Yield | 0.31% |
Investment Securities (Schedu70
Investment Securities (Schedule Of Debt Securities AFS - Estimated Unrealized Losses) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Total securities available-for-sale, Less than 12 months, Fair Value | $ 237.4 | $ 1,585.7 |
Total securities available-for-sale, 12 months or greater, Fair Value | 40.3 | |
Total securities available-for-sale, Less than 12 months, Gross Unrealized Loss | (0.7) | (12) |
Total securities available-for-sale, 12 months or greater, Gross Unrealized Loss | (0.5) | |
U.S. Government Agency Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total securities available-for-sale, Less than 12 months, Fair Value | 33 | 147 |
Total securities available-for-sale, 12 months or greater, Fair Value | 11 | |
Total securities available-for-sale, Less than 12 months, Gross Unrealized Loss | (0.1) | (0.9) |
Total securities available-for-sale, 12 months or greater, Gross Unrealized Loss | (0.1) | |
Non-Agency Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total securities available-for-sale, Less than 12 months, Fair Value | 9.4 | 495.5 |
Total securities available-for-sale, 12 months or greater, Fair Value | 29.3 | |
Total securities available-for-sale, Less than 12 months, Gross Unrealized Loss | (0.1) | (7.2) |
Total securities available-for-sale, 12 months or greater, Gross Unrealized Loss | (0.4) | |
U.S. Government Agency Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total securities available-for-sale, Less than 12 months, Fair Value | 174.7 | 943 |
Total securities available-for-sale, Less than 12 months, Gross Unrealized Loss | (0.3) | (3.7) |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total securities available-for-sale, Less than 12 months, Fair Value | 217.1 | 1,585.5 |
Total securities available-for-sale, 12 months or greater, Fair Value | 40.3 | |
Total securities available-for-sale, Less than 12 months, Gross Unrealized Loss | (0.5) | (11.8) |
Total securities available-for-sale, 12 months or greater, Gross Unrealized Loss | (0.5) | |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total securities available-for-sale, Less than 12 months, Fair Value | 20.3 | 0.2 |
Total securities available-for-sale, Less than 12 months, Gross Unrealized Loss | $ (0.2) | $ (0.2) |
Investment Securities (Changes
Investment Securities (Changes In Accretable Yield For Purchased Credit-Impaired Securities) (Details) - OneWest Bank [Member] - Mortgage-Backed Securities [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities Accretable Yield Movement Schedules [Line Items] | ||||
Beginning Balance | $ 179.2 | $ 298.4 | $ 189 | $ 298.4 |
Accretion into interest income | (7.1) | (8.2) | (22.3) | (8.2) |
Reclassification from nonaccretable difference | 0.6 | 6 | ||
Ending Balance | $ 172.7 | $ 290.2 | $ 172.7 | $ 290.2 |
Investment Securities (Schedu72
Investment Securities (Schedule Of Securities Carried At Fair Value With Changes Recorded In Net Income) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 295.9 | $ 343.8 |
Gross Unrealized Gains | 6.1 | 0.3 |
Gross Unrealized Losses | (0.7) | (4.4) |
Fair Value | 301.3 | 339.7 |
Mortgage-Backed Securities - Non-Agency [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 295.9 | 343.8 |
Gross Unrealized Gains | 6.1 | 0.3 |
Gross Unrealized Losses | (0.7) | (4.4) |
Fair Value | $ 301.3 | $ 339.7 |
Investment Securities (Schedu73
Investment Securities (Schedule Of Amortized Cost And Fair Value Maturities With Changes Recorded In Net Income) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Total debt securities carried at fair value with changes recorded in net income, Amortized Cost | $ 295.9 | $ 343.8 |
Total debt securities carried at fair value with changes recorded in net income, Fair Value | $ 301.3 | $ 339.7 |
Average Yield | 4.92% | |
Non-Agency Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
After 5 but within 10 years, Amortized Cost | $ 0.2 | |
Due after 10 years, Amortized Cost | 295.7 | |
After 5 but within 10 years, Fair Value | 0.3 | |
Due after 10 years, Fair Value | $ 301 | |
After 5 but within 10 years, Average Yield | 37.26% | |
Due after 10 years, Average Yield | 4.89% |
Investment Securities (Carrying
Investment Securities (Carrying Value And Fair Value Of Securities Held-To-Maturity) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
U.S. Government Agency Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying Value | $ 120.6 | $ 147.2 |
Gross Unrealized Gains | 1.9 | 1.1 |
Gross Unrealized Losses | (0.4) | (2.6) |
Fair Value | 122.1 | 145.7 |
State And Municipal [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying Value | 27.7 | 37.1 |
Gross Unrealized Gains | 0.1 | |
Gross Unrealized Losses | (0.8) | (1.6) |
Fair Value | 27 | 35.5 |
Foreign Government [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying Value | 2.4 | 13.5 |
Gross Unrealized Gains | 0.1 | |
Fair Value | 2.5 | 13.5 |
Corporate - Foreign [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying Value | 103.7 | 102.3 |
Gross Unrealized Gains | 6 | 4.5 |
Fair Value | 109.7 | 106.8 |
Debt Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying Value | 254.4 | 300.1 |
Gross Unrealized Gains | 8.1 | 5.6 |
Gross Unrealized Losses | (1.2) | (4.2) |
Fair Value | $ 261.3 | $ 301.5 |
Investment Securities (Amorti75
Investment Securities (Amortized Cost And Fair Value Of Debt Securities Held-To-Maturity By Contractual Maturity Dates) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
U.S. Government Agency Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
After 5 but within 10 years, Amortized Cost | $ 1.3 | |
Due after 10 years, Amortized Cost | 119.3 | |
Amortized Cost | 120.6 | $ 147.2 |
After 5 but within 10 years, Fair Value | 1.3 | |
Due after 10 years, Fair Value | 120.8 | |
Fair Value | $ 122.1 | 145.7 |
After 5 but within 10 years, Average Yield | 2.22% | |
Due after 10 years, Average Yield | 2.26% | |
Average Yield | 2.26% | |
State And Municipal [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Due within 1 year, Amortized Cost | $ 0.5 | |
After 1 but within 5 years, Amortized Cost | 0.5 | |
After 5 but within 10 years, Amortized Cost | 0.5 | |
Due after 10 years, Amortized Cost | 26.2 | |
Amortized Cost | 27.7 | 37.1 |
Due within 1 year, Fair Value | 0.5 | |
After 1 but within 5 years, Fair Value | 0.5 | |
After 5 but within 10 years, Fair Value | 0.5 | |
Due after 10 years, Fair Value | 25.5 | |
Fair Value | $ 27 | 35.5 |
Due within 1 year, Average Yield | 2.09% | |
After 1 but within 5 years, Average Yield | 2.46% | |
After 5 but within 10 years, Average Yield | 2.70% | |
Due after 10 years, Average Yield | 2.30% | |
Average Yield | 2.31% | |
Foreign Government [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Due within 1 year, Amortized Cost | $ 2.4 | |
Amortized Cost | 2.4 | 13.5 |
Due within 1 year, Fair Value | 2.5 | |
Fair Value | $ 2.5 | 13.5 |
Due within 1 year, Average Yield | 2.43% | |
Average Yield | 2.43% | |
Corporate - Foreign [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
After 1 but within 5 years, Amortized Cost | $ 103.7 | |
Amortized Cost | 103.7 | 102.3 |
After 1 but within 5 years, Fair Value | 109.7 | |
Fair Value | $ 109.7 | 106.8 |
After 1 but within 5 years, Average Yield | 4.28% | |
Average Yield | 4.28% | |
Debt Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 254.4 | 300.1 |
Fair Value | $ 261.3 | $ 301.5 |
Average Yield | 3.09% |
Investment Securities (Schedu76
Investment Securities (Schedule Of Debt Securities HTM - Estimated Unrealized Losses) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Total securities held-to-maturity, Less than 12 months, Fair Value | $ 65.3 | |
Total securities held-to-maturity, Less than 12 months, Gross Unrealized Loss | (1) | |
Total securities held-to-maturity, 12 months or greater, Fair Value | $ 52.1 | 68.9 |
Total securities held-to-maturity, 12 months or greater, Gross Unrealized Loss | (1.2) | (3.2) |
U.S. Government Agency Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total securities held-to-maturity, Less than 12 months, Fair Value | 62.2 | |
Total securities held-to-maturity, Less than 12 months, Gross Unrealized Loss | (0.9) | |
Total securities held-to-maturity, 12 months or greater, Fair Value | 30.1 | 40.7 |
Total securities held-to-maturity, 12 months or greater, Gross Unrealized Loss | (0.4) | (1.7) |
State And Municipal [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total securities held-to-maturity, Less than 12 months, Fair Value | 3.1 | |
Total securities held-to-maturity, Less than 12 months, Gross Unrealized Loss | (0.1) | |
Total securities held-to-maturity, 12 months or greater, Fair Value | 22 | 28.2 |
Total securities held-to-maturity, 12 months or greater, Gross Unrealized Loss | $ (0.8) | $ (1.5) |
Deposits (Schedule Of Deposits)
Deposits (Schedule Of Deposits) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Deposits [Abstract] | ||
Deposits Outstanding | $ 32,854.3 | $ 32,782.2 |
Weighted average contractual interest rate | 1.22% | 1.26% |
Weighted average remaining number of days to maturity | 685 days | 864 days |
Daily average deposits for the year | $ 32,771.4 | $ 23,277.8 |
Maximum amount outstanding for the year | $ 33,225.1 | $ 32,899.6 |
Weighted average contractual interest rate for the year | 1.24% | 1.45% |
Deposits (Schedule Of Rates And
Deposits (Schedule Of Rates And Maturities Of Deposits) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Deposits [Abstract] | ||
Non-interest-bearing checking, Amount | $ 987.1 | |
Interest-bearing checking, Amount | 3,074.8 | |
Money market, Amount | 6,334.9 | |
Savings, Amount | 4,325.5 | |
Other, Amount | 146.2 | |
Total checking and savings deposits, Amount | 14,868.5 | |
Certificates of deposit, remaining contractual maturity: Within one year, Amount | 9,135.4 | |
Certificates of deposit, remaining contractual maturity: One to two years, Amount | 2,689.4 | |
Certificates of deposit, remaining contractual maturity: Two to three years, Amount | 1,797.8 | |
Certificates of deposit, remaining contractual maturity: Three to four years, Amount | 2,150.9 | |
Certificates of deposit, remaining contractual maturity: Four to five years, Amount | 783.7 | |
Certificates of deposit, remaining contractual maturity: Over five years, Amount | 1,417.9 | |
Total certificates of deposit, Amount | 17,975.1 | |
Premium / discount, Amount | (0.7) | |
Purchase accounting adjustments, Amount | 11.4 | |
Total Deposits, Amount | $ 32,854.3 | $ 32,782.2 |
Interest-bearing checking, Average Rate | 0.55% | |
Money market, Average Rate | 0.82% | |
Savings, Average Rate | 0.88% | |
Certificates of deposit, remaining contractual maturity: Within one year, Average Rate | 1.13% | |
Certificates of deposit, remaining contractual maturity: One to two years, Average Rate | 1.44% | |
Certificates of deposit, remaining contractual maturity: Two to three years, Average Rate | 2.20% | |
Certificates of deposit, remaining contractual maturity: Three to four years, Average Rate | 2.24% | |
Certificates of deposit, remaining contractual maturity: Four to five years, Average Rate | 2.41% | |
Certificates of deposit, remaining contractual maturity: Over five years, Average Rate | 3.15% | |
Total Deposits, Average Rate | 1.22% | 1.26% |
Deposits (Schedule Of Certifica
Deposits (Schedule Of Certificates Of Deposit $100 Thousand Or More) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Deposits [Abstract] | ||
U.S. certificates of deposits: Three months or less | $ 1,624 | $ 1,476.5 |
U.S. certificates of deposits: After three months through six months | 1,767.5 | 1,462.6 |
U.S. certificates of deposits: After six months through twelve months | 3,482 | 2,687.2 |
U.S. certificates of deposits: After twelve months | 7,823 | 9,245.8 |
Total U.S. certificates of deposit $100 thousand or more | $ 14,696.5 | $ 14,872.1 |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) | 9 Months Ended | |
Sep. 30, 2016USD ($)item | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | ||
Revolving Credit Facility, available draw amount | $ 1,400,000,000 | |
Revolving Credit Facility, domestic operating subsidiary guarantors | item | 9 | |
Revolving Credit Facility, minimum guarantor asset coverage ratio | 1.375 | |
Revolving Credit Facility, minimum consolidated net worth covenant | $ 6,000,000,000 | |
Senior Unsecured Notes, percent of purchase price to principal amount | 101.00% | |
FHLB Advances, financing availability | $ 5,600,000,000 | |
FHLB Advances, unused and available | $ 2,300,000,000 | |
FHLB Advances, weighted average rate | 1.09% | |
Premium purchase accounting adjustment | $ 6,555,500,000 | $ 6,783,100,000 |
Secured borrowings | 3,515,400,000 | 4,687,900,000 |
HECM loans | 393,000,000 | 449,500,000 |
Secured borrowings - HECM loans | 386,600,000 | 440,600,000 |
Pledged assets | 16,400,000,000 | |
Pledged assets, loans | 11,300,000,000 | |
Pledged assets, operating lease assets | 4,200,000,000 | |
Pledged assets, cash | 800,000,000 | |
Pledged assets, investments | 100,000,000 | |
HMBS [Member] | ||
Debt Instrument [Line Items] | ||
HECM loans | 393,000,000 | 449,500,000 |
Secured borrowings - HECM loans | $ 386,600,000 | 440,600,000 |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Revolving Credit Facility, minimum guarantor asset coverage ratio | 1.5 | |
Senior Unsecured Notes, percent of purchase price to principal amount | 98.00% | |
Percent required of claim amount for loan service | 98.00% | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Revolving Credit Facility, minimum guarantor asset coverage ratio | 1 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Revolving Credit Facility, outstanding | $ 0 | 0 |
Revolving Credit Facility, total commitment amount | $ 1,500,000,000 | |
Revolving Credit Facility, maturity date | Jan. 26, 2018 | |
Revolving Loan Tranche One [Member] | ||
Debt Instrument [Line Items] | ||
Revolving Credit Facility, total commitment amount | $ 1,150,000,000 | |
Revolving Loan Tranche Two [Member] | ||
Debt Instrument [Line Items] | ||
Revolving Credit Facility, total commitment amount | 350,000,000 | |
Letters of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Revolving Credit Facility, available draw amount | 100,000,000 | |
FHLB Advances, utilized | 811,600,000 | |
Senior Unsecured Note, 6.00% Maturing in 2036 [Member] | ||
Debt Instrument [Line Items] | ||
Carrying value | 39,000,000 | |
Face amount | $ 51,000,000 | |
Rate (%) | 6.00% | |
Maturity date | Dec. 31, 2036 | |
Structured Financings [Member] | ||
Debt Instrument [Line Items] | ||
Secured Borrowings, weighted average rate | 3.66% | |
Structured Financings [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Secured Borrowings, weighted average rate | 0.00% | |
Structured Financings [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Secured Borrowings, weighted average rate | 5.74% | |
LIBOR [Member] | Revolving Credit Facility [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Revolving Credit Facility, applicable margin | 2.25% | |
Base Rate [Member] | Revolving Credit Facility [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Revolving Credit Facility, applicable margin | 1.25% | |
OneWest Bank [Member] | Variable Interest Entities [Member] | ||
Debt Instrument [Line Items] | ||
unamortized premium balance | $ 9,300,000 | 13,200,000 |
OneWest Bank [Member] | Variable Interest Entities [Member] | HMBS [Member] | ||
Debt Instrument [Line Items] | ||
Secured borrowings | 166,200,000 | $ 189,600,000 |
OneWest Bank [Member] | Discontinued Operations [Member] | ||
Debt Instrument [Line Items] | ||
Secured borrowings | $ 386,600,000 |
Borrowings (Schedule Of Long-Te
Borrowings (Schedule Of Long-Term Borrowings) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 16,548.7 | $ 18,441.8 |
CIT Group Inc. [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 10,595.1 | |
Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 5,953.6 | |
Senior Unsecured Borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 10,595.1 | 10,636.3 |
Deferred debt issuance costs | 41.4 | |
Senior Unsecured Borrowings [Member] | CIT Group Inc. [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 10,595.1 | |
Structured Financings [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 3,515.4 | 4,687.9 |
Deferred debt issuance costs | 55.9 | |
Structured Financings [Member] | Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 3,515.4 | |
FHLB Advances [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 2,438.2 | $ 3,117.6 |
FHLB Advances [Member] | Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 2,438.2 |
Borrowings (Schedule Of Senior
Borrowings (Schedule Of Senior Unsecured Notes) (Details) - Senior Unsecured Notes [Member] | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Debt Instrument [Line Items] | |
Par Value | $ 10,594,500,000 |
Weighted Average Rate (%) | 5.02% |
May 2017 - 5.000% [Member] | |
Debt Instrument [Line Items] | |
Maturity Date | May 1, 2017 |
Rate (%) | 5.00% |
Date of Issuance | May 1, 2012 |
Par Value | $ 1,208,700,000 |
August 2017 - 4.250% [Member] | |
Debt Instrument [Line Items] | |
Maturity Date | Aug. 1, 2017 |
Rate (%) | 4.25% |
Date of Issuance | Aug. 1, 2012 |
Par Value | $ 1,725,800,000 |
March 2018 - 5.250% [Member] | |
Debt Instrument [Line Items] | |
Maturity Date | Mar. 1, 2018 |
Rate (%) | 5.25% |
Date of Issuance | Mar. 1, 2012 |
Par Value | $ 1,465,000,000 |
April 2018 - 6.625% [Member] | |
Debt Instrument [Line Items] | |
Maturity Date | Apr. 1, 2018 |
Rate (%) | 6.625% |
Date of Issuance | Mar. 1, 2011 |
Par Value | $ 695,000,000 |
February - 2019 - 5.500% [Member] | |
Debt Instrument [Line Items] | |
Maturity Date | Feb. 1, 2019 |
Rate (%) | 5.50% |
Date of Issuance | Feb. 1, 2012 |
Par Value | $ 1,750,000,000 |
February 2019 - 3.875% [Member] | |
Debt Instrument [Line Items] | |
Maturity Date | Feb. 1, 2019 |
Rate (%) | 3.875% |
Date of Issuance | Feb. 1, 2014 |
Par Value | $ 1,000,000,000 |
May 2020 - 5.375% [Member] | |
Debt Instrument [Line Items] | |
Maturity Date | May 1, 2020 |
Rate (%) | 5.375% |
Date of Issuance | May 1, 2012 |
Par Value | $ 750,000,000 |
August 2022 - 5.000% [Member] | |
Debt Instrument [Line Items] | |
Maturity Date | Aug. 1, 2022 |
Rate (%) | 5.00% |
Date of Issuance | Aug. 1, 2012 |
Par Value | $ 1,250,000,000 |
August 2023 - 5.000% [Member] | |
Debt Instrument [Line Items] | |
Maturity Date | Aug. 1, 2023 |
Rate (%) | 5.00% |
Date of Issuance | Aug. 1, 2013 |
Par Value | $ 750,000,000 |
Borrowings (Schedule Of FHLB Ad
Borrowings (Schedule Of FHLB Advances With Pledged Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Borrowings [Abstract] | ||
FHLB Advances | $ 2,438.2 | $ 3,117.6 |
Pledged Assets | $ 6,555.5 | $ 6,783.1 |
Borrowings (Schedule Of Secured
Borrowings (Schedule Of Secured Financings And Pledged Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowing | $ 3,515.4 | $ 4,687.9 |
Pledged Assets | 7,325.5 | 8,215.1 |
TRS [Member] | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowing | 1,100 | |
Pledged Assets | 1,700 | |
Transportation Finance [Member] | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowing | 2,705.4 | 3,008.5 |
Pledged Assets | 4,820.5 | 5,068.3 |
Transportation Finance [Member] | Rail [Member] | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowing | 840.7 | 917 |
Pledged Assets | 1,303.7 | 1,336.1 |
Transportation Finance [Member] | Aerospace [Member] | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowing | 1,864.7 | 2,091.5 |
Pledged Assets | 3,516.8 | 3,732.2 |
Commercial Banking [Member] | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowing | 659.6 | 1,128.6 |
Pledged Assets | 2,255.3 | 2,434.3 |
Commercial Banking [Member] | Commercial Finance [Member] | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Pledged Assets | 0.2 | 0.2 |
Commercial Banking [Member] | Business Capital [Member] | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowing | 659.6 | 1,128.6 |
Pledged Assets | 2,255.1 | 2,434.1 |
Consumer And Community Banking [Member] | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowing | 0.4 | |
Pledged Assets | 0.4 | |
Consumer And Community Banking [Member] | Legacy Consumer Mortgages [Member] | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowing | 0.4 | |
Pledged Assets | 0.4 | |
Non-Strategic Portfolios [Member] | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowing | 150 | 550.8 |
Pledged Assets | $ 249.3 | $ 712.5 |
Borrowings (Assets and Liabilit
Borrowings (Assets and Liabilities in Unconsolidated VIEs) (Details) - Unconsolidated Variable Interest Entities (VIEs) [Member] - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Securities [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | $ 1,776.2 | $ 1,201.3 |
Maximum loss exposure | 1,776.2 | 1,201.3 |
Debt Securities [Member] | Agency Securities [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 964.6 | 294.5 |
Debt Securities [Member] | Non-agency Securities - Other Servicer [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 811.6 | 906.8 |
Equity Securities [Member] | Tax Credit Equity Investment [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 115.6 | 125 |
Partnership Investment [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 115.6 | 125 |
Total Liabilities | 7.3 | 15.7 |
Maximum loss exposure | 115.6 | 125 |
Partnership Investment [Member] | Commitments To Tax Credit Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Liabilities | 7.3 | $ 15.7 |
Restatement Adjustment [Member] | Agency Securities [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | $ 147 |
Derivative Financial Instrume86
Derivative Financial Instruments (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($)item | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)item | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Derivative [Line Items] | |||||
Notional amount of derivative | $ 13,371.1 | $ 13,371.1 | $ 13,947.4 | ||
Maximum aggregate facility commitment amounts | 2,125 | 2,125 | |||
Aggregate actual adjusted qualifying borrowing base outstanding | 925 | $ 925 | 972.2 | ||
Minimum period of notification for total return swap | 10 days | ||||
Liability recorded based on Company's valuation | 47.8 | $ 47.8 | 54.9 | ||
Recognized reduction to other income | $ 19.7 | $ 24.3 | $ 7.1 | $ 31.7 | |
TRS [Member] | |||||
Derivative [Line Items] | |||||
Number of derivative financing facilities | item | 2 | 2 | |||
Number of wholly owned subsidiaries | item | 2 | 2 | |||
Notional amount of derivative | $ 1,200 | $ 1,200 | $ 1,152.8 | ||
TRS [Member] | CIT Financial, Ltd. Facility [Member] | |||||
Derivative [Line Items] | |||||
Unutilized portion of facility accounted for as a derivative | 1,500 | 1,500 | |||
TRS [Member] | CIT TRS Funding B.V. [Member] | |||||
Derivative [Line Items] | |||||
Unutilized portion of facility accounted for as a derivative | $ 625 | $ 625 |
Derivative Financial Instrume87
Derivative Financial Instruments (Fair And Notional Values Of Derivative Financial Instruments) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 13,371.1 | $ 13,947.4 |
Asset Fair Value | 124.9 | 141.1 |
Liability Fair Value | (155.4) | (103.6) |
TRS [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,200 | 1,152.8 |
Qualifying Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 775.2 | 787.6 |
Asset Fair Value | 8.8 | 45.5 |
Liability Fair Value | (2.1) | (0.3) |
Qualifying Hedges [Member] | Foreign Currency Forward Contracts - Net Investment Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 775.2 | 787.6 |
Asset Fair Value | 8.8 | 45.5 |
Liability Fair Value | (2.1) | (0.3) |
Non-Qualifying Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 12,595.9 | 13,159.8 |
Asset Fair Value | 116.1 | 95.6 |
Liability Fair Value | (153.3) | (103.3) |
Non-Qualifying Hedges [Member] | Interest Rate Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 5,064.8 | 4,645.7 |
Asset Fair Value | 104.2 | 45.1 |
Liability Fair Value | (98.8) | (38.9) |
Non-Qualifying Hedges [Member] | Written Options [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,663 | 3,346.1 |
Asset Fair Value | 0.2 | 0.1 |
Liability Fair Value | (0.2) | (2.5) |
Non-Qualifying Hedges [Member] | Purchased Options [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,049.1 | 2,342.5 |
Asset Fair Value | 0.2 | 2.2 |
Liability Fair Value | (0.2) | (0.1) |
Non-Qualifying Hedges [Member] | Foreign Currency Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,291.1 | 1,624.2 |
Asset Fair Value | 11 | 47.8 |
Liability Fair Value | (5.7) | (6.6) |
Non-Qualifying Hedges [Member] | TRS [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,200 | 1,152.8 |
Liability Fair Value | (47.8) | (54.9) |
Non-Qualifying Hedges [Member] | Equity Warrants [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1 | 1 |
Asset Fair Value | 0.1 | 0.3 |
Non-Qualifying Hedges [Member] | Interest Rate Lock Commitments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 41.6 | 9.9 |
Asset Fair Value | 0.4 | 0.1 |
Non-Qualifying Hedges [Member] | Forward Sale Commitments On Agency MBS [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 24 | |
Liability Fair Value | (0.1) | |
Non-Qualifying Hedges [Member] | Credit Derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 261.3 | 37.6 |
Liability Fair Value | $ (0.5) | $ (0.3) |
Derivative Financial Instrume88
Derivative Financial Instruments (Offsetting Of Derivative Assets And Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Derivative Financial Instruments [Abstract] | ||
Gross Amount Recognized, Derivative assets | $ 124.9 | $ 141.1 |
Total return swap facility | 124.9 | 141.1 |
Gross Amounts not offset on Statement Of Financial Position, Financial Instruments, Derivative assets | (6.3) | (9.7) |
Gross Amounts not offset on Statement of Financial Position, Cash Collateral Received (Pledged), Derivative assets | (11.9) | (82.7) |
Gross Amounts not offset on Statement of Financial Position, Net Amount, Derivative assets | 106.7 | 48.7 |
Gross Amount Recognized, Derivative liabilities | (155.4) | (103.6) |
Net Amount of (Liability) Presented on the Statement of Finacial Position, Derivative liabilities | (155.4) | (103.6) |
Gross Amounts not offset on Statement Of Financial Position, Financial Instruments, Derivative liabilities | 6.3 | 9.7 |
Gross Amounts not offset on Statement of Financial Position, Cash Collateral Received (Pledged), Derivative liabilities | 93.3 | 31.8 |
Gross Amounts not offset on Statement of Financial Position, Net Amount, Derivative liabilities | $ (55.8) | $ (62.1) |
Derivative Financial Instrume89
Derivative Financial Instruments (Derivative Instrument Gains And Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instrument - income statement impact | $ (15.4) | $ 18.5 | $ (2.5) | $ 52.9 |
Non-Qualifying Hedges [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instrument - income statement impact | (15.4) | 18.5 | (2.5) | 52.9 |
Non-Qualifying Hedges [Member] | Interest Rate Swaps [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instrument - income statement impact | 2.4 | (2.2) | (0.6) | (1.1) |
Non-Qualifying Hedges [Member] | Interest Rate Options [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instrument - income statement impact | 0.1 | 1.2 | 0.5 | 1.1 |
Non-Qualifying Hedges [Member] | Foreign Currency Forward Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instrument - income statement impact | 1.4 | 43.8 | (10.9) | 84.5 |
Non-Qualifying Hedges [Member] | Equity Warrants [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instrument - income statement impact | 0.1 | (0.2) | 0.1 | |
Non-Qualifying Hedges [Member] | TRS [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instrument - income statement impact | (19.7) | $ (24.3) | 7.1 | $ (31.7) |
Non-Qualifying Hedges [Member] | Interest Rate Lock Commitments [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instrument - income statement impact | 0.2 | 0.3 | ||
Non-Qualifying Hedges [Member] | Forward Sale Commitments On Agency MBS [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instrument - income statement impact | (0.1) | (0.1) | ||
Non-Qualifying Hedges [Member] | Credit Derivatives [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instrument - income statement impact | $ 0.2 | $ 1.4 |
Derivative Financial Instrume90
Derivative Financial Instruments (Changes In AOCI Relating To Derivatives) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives - effective portion reclassified from AOCI to income | $ 4.3 | $ 1.8 | $ 8.5 | |
Total income statement impact | 4.3 | 1.8 | 8.5 | |
Derivatives - effective portion recorded in OCI | $ 4.2 | 44 | (28.1) | 106.3 |
Total change in OCI for the period | 4.2 | 39.7 | (29.9) | 97.8 |
Foreign Currency Forward Contracts - Net Investment Hedges [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives - effective portion reclassified from AOCI to income | 4.3 | 1.8 | 8.5 | |
Total income statement impact | 4.3 | 1.8 | 8.5 | |
Derivatives - effective portion recorded in OCI | 4.2 | 44 | (28.1) | 106.3 |
Total change in OCI for the period | $ 4.2 | $ 39.7 | $ (29.9) | $ 97.8 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)item | Dec. 31, 2015USD ($) | ||||
Fair Value Disclosure [Line Items] | |||||||
Fair value of loans, percentage | 99.20% | 97.30% | |||||
Threshold of portfolio original unpaid principal balance for FIDC receivables | 10.00% | ||||||
Borrower rate, max effective period | 90 days | ||||||
Level 3 transfers | $ 0 | $ 0 | |||||
Contractual right to cash flows of underlying collateral measured at estimated fair value | 40.00% | ||||||
Classification error, securities held at fair value through net income | 301,300,000 | $ 301,300,000 | $ 339,700,000 | ||||
Unpaid principal balance | 3,762,000,000 | 3,762,000,000 | 4,149,800,000 | ||||
Impaired loans unpaid principal balance with no specific allowance | 40,900,000 | 40,900,000 | 33,300,000 | ||||
Impaired loans carrying value with no specific allowance | 20,300,000 | 20,300,000 | 21,900,000 | ||||
Carrying value of impaired loans | 2,607,400,000 | 2,607,400,000 | 2,845,100,000 | ||||
Impaired loans carrying amount | 143,400,000 | $ 143,400,000 | $ 121,800,000 | ||||
Carrying amount of impaired loans percentage of unpaid principal balance | 69.90% | 70.60% | |||||
Assets held for sale | 2,462,100,000 | [1] | $ 2,154,300,000 | $ 2,462,100,000 | [1] | $ 2,092,400,000 | [1] |
Leasing assets acquired | 20,341,800,000 | 20,341,800,000 | 21,380,900,000 | ||||
Level 2 [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Assets held for sale | 164,500,000 | 164,500,000 | |||||
Unsecured borrowings | 10,600,000,000 | 10,600,000,000 | 10,700,000,000 | ||||
Debt Instrument, Face Amount | 4,000,000,000 | 4,000,000,000 | 5,100,000,000 | ||||
Level 3 [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Assets held for sale (excluding leases) | 1,598,000,000 | 1,598,000,000 | 1,652,500,000 | ||||
Debt Instrument, Face Amount | 2,000,000,000 | $ 2,000,000,000 | $ 2,700,000,000 | ||||
Minimum [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Discount rate | 5.00% | ||||||
Threshold at which impaired finance receivables that are placed on non-accrual status are subject to individual review | 500,000 | $ 500,000 | |||||
Maximum [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Discount rate | 12.20% | ||||||
OneWest Bank [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Probable amount of holdback to be paid | $ 62,400,000 | ||||||
Contingent liabilites | 47,000,000 | 47,000,000 | |||||
OneWest Bank [Member] | Minimum [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Range of potential holdback to be paid | 0 | 0 | |||||
OneWest Bank [Member] | Maximum [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Range of potential holdback to be paid | 116,000,000 | $ 116,000,000 | |||||
Available-For-Sale Securities [Member] | Minimum [Member] | Level 3 [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Discount rate | 2.70% | 0.00% | |||||
Available-For-Sale Securities [Member] | Maximum [Member] | Level 3 [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Discount rate | 81.40% | 94.50% | |||||
Available-For-Sale Securities [Member] | Weighted Average [Member] | Level 3 [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Discount rate | 5.30% | 6.40% | |||||
FDIC Receivable [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Percent of future cash flows from underlying loans and real estate properties | 40.00% | ||||||
FDIC Receivable [Member] | Minimum [Member] | Level 3 [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Discount rate | 7.80% | 7.80% | |||||
FDIC Receivable [Member] | Maximum [Member] | Level 3 [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Discount rate | 18.40% | 18.40% | |||||
FDIC Receivable [Member] | Weighted Average [Member] | Level 3 [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Discount rate | 9.40% | 9.40% | |||||
Securities Carried At Fair Value With Changed Recorded In Net Income [Member] | Minimum [Member] | Level 3 [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Discount rate | 0.00% | 0.00% | |||||
Securities Carried At Fair Value With Changed Recorded In Net Income [Member] | Maximum [Member] | Level 3 [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Discount rate | 37.80% | 19.90% | |||||
Securities Carried At Fair Value With Changed Recorded In Net Income [Member] | Weighted Average [Member] | Level 3 [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Discount rate | 5.40% | 6.30% | |||||
FDIC True-Up Liability [Member] | Minimum [Member] | Level 3 [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Discount rate | 3.20% | 4.10% | |||||
FDIC True-Up Liability [Member] | Maximum [Member] | Level 3 [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Discount rate | 3.20% | 4.10% | |||||
FDIC True-Up Liability [Member] | Weighted Average [Member] | Level 3 [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Discount rate | 3.20% | 4.10% | |||||
FDIC True-Up Liability [Member] | La Jolla Transaction [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Number of days after the loss sharing agreement maturity | 45 days | ||||||
Consideration Holdback Liability [Member] | Minimum [Member] | Level 3 [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Discount rate | 1.30% | 3.00% | |||||
Consideration Holdback Liability [Member] | Maximum [Member] | Level 3 [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Discount rate | 4.00% | 3.00% | |||||
Consideration Holdback Liability [Member] | Weighted Average [Member] | Level 3 [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Discount rate | 2.20% | 3.00% | |||||
Consideration Holdback Liability [Member] | OneWest Bank [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Number of consideration holdback liabilities | item | 4 | ||||||
Reduction in cash consideration due to trailing risks | $ 116,000,000 | ||||||
Consideration Holdback Liability [Member] | OneWest Bank [Member] | Minimum [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Holdback periods | 1 year | ||||||
Consideration Holdback Liability [Member] | OneWest Bank [Member] | Maximum [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Holdback periods | 5 years | ||||||
Impaired Loans [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Unpaid principal balance | 205,100,000 | $ 205,100,000 | $ 172,500,000 | ||||
Carrying value of impaired loans | 177,200,000 | 177,200,000 | 149,600,000 | ||||
Estimated Fair Value [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Fair value of loans | 26,861,000,000 | 26,861,000,000 | 27,484,600,000 | ||||
Assets held for sale (excluding leases) | 1,132,900,000 | 1,132,900,000 | 746,700,000 | ||||
Estimated Fair Value [Member] | Level 1 [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Assets held for sale (excluding leases) | 21,800,000 | ||||||
Estimated Fair Value [Member] | Level 2 [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Fair value of loans | 430,000,000 | 430,000,000 | 975,500,000 | ||||
Assets held for sale (excluding leases) | 164,500,000 | 164,500,000 | 55,800,000 | ||||
Estimated Fair Value [Member] | Level 3 [Member] | |||||||
Fair Value Disclosure [Line Items] | |||||||
Fair value of loans | 26,431,000,000 | 26,431,000,000 | 26,509,100,000 | ||||
Assets held for sale (excluding leases) | $ 968,400,000 | $ 968,400,000 | $ 669,100,000 | ||||
[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. |
Fair Value (Assets And Liabilit
Fair Value (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities AFS | $ 2,729.2 | |
Securities carried at fair value with changes recorded in net income | 301.3 | $ 339.7 |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities AFS | 2,729.2 | 2,007.8 |
Securities carried at fair value with changes recorded in net income | 301.3 | 339.7 |
Equity Securities AFS | 34.8 | 14.3 |
FDIC receivable | 49.3 | 54.8 |
Total Assets | 3,239.5 | 2,557.7 |
Consideration holdback liability | (47) | (60.8) |
FDIC true-up liability | (61.3) | (56.9) |
Total Liabilities | (263.7) | (221.3) |
Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities AFS | 0.2 | 0.3 |
Total Assets | 0.2 | 0.3 |
Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities AFS | 2,218.8 | 1,440.7 |
Securities carried at fair value with changes recorded in net income | ||
Equity Securities AFS | 34.6 | 14 |
FDIC receivable | ||
Total Assets | 2,377.9 | 1,595.8 |
Consideration holdback liability | ||
FDIC true-up liability | ||
Total Liabilities | (107.1) | (48.1) |
Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities AFS | 510.4 | 567.1 |
Securities carried at fair value with changes recorded in net income | 301.3 | 339.7 |
FDIC receivable | 49.3 | 54.8 |
Total Assets | 861.4 | 961.6 |
Consideration holdback liability | (47) | (60.8) |
FDIC true-up liability | (61.3) | (56.9) |
Total Liabilities | (156.6) | (173.2) |
FDIC Receivable [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
FDIC receivable | 49.3 | 54.8 |
Non-Qualifying Hedges [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets at fair value | 116.1 | 95.6 |
Derivative liabilities at fair value | (153.3) | (103.3) |
Non-Qualifying Hedges [Member] | Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets at fair value | 115.7 | 95.6 |
Derivative liabilities at fair value | (105) | (47.8) |
Non-Qualifying Hedges [Member] | Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets at fair value | 0.4 | |
Derivative liabilities at fair value | (48.3) | (55.5) |
Qualifying Hedges [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets at fair value | 8.8 | 45.5 |
Derivative liabilities at fair value | (2.1) | (0.3) |
Qualifying Hedges [Member] | Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets at fair value | 8.8 | 45.5 |
Derivative liabilities at fair value | $ (2.1) | $ (0.3) |
Fair Value (Quantitative Inform
Fair Value (Quantitative Information About Level 3 Fair Value Measurements-Recurring) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Minimum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Inputs, Discount Rate | 5.00% | |
Maximum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Inputs, Discount Rate | 12.20% | |
Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Estimated fair value - assets | $ 861.4 | $ 961.6 |
Estimated fair value - liabilities | (156.6) | (173.2) |
Level 3 [Member] | FDIC True-Up Liability [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Estimated fair value - liabilities | $ (61.3) | (56.9) |
Valuation Techniques | Discounted cash flow | |
Level 3 [Member] | Consideration Holdback Liability [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Estimated fair value - liabilities | $ (47) | (60.8) |
Valuation Techniques | Discounted cash flow | |
Level 3 [Member] | Derivative Liabilities - Non Qualifying [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Estimated fair value - liabilities | $ (48.3) | (55.5) |
Valuation Techniques | Market Comparables(1) | |
Level 3 [Member] | Available-For-Sale Securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Estimated fair value - assets | $ 510.4 | 567.1 |
Valuation Techniques | Discounted cash flow | |
Level 3 [Member] | Securities Carried At Fair Value With Changed Recorded In Net Income [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Estimated fair value - assets | $ 301.3 | 339.7 |
Valuation Techniques | Discounted cash flow | |
Level 3 [Member] | FDIC Receivable [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Estimated fair value - assets | $ 49.3 | $ 54.8 |
Valuation Techniques | Discounted cash flow | |
Level 3 [Member] | Derivative Assets - Non Qualifying [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Estimated fair value - assets | $ 0.4 | |
Valuation Techniques | Internal valuation model | |
Level 3 [Member] | Minimum [Member] | FDIC True-Up Liability [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Inputs, Discount Rate | 3.20% | 4.10% |
Level 3 [Member] | Minimum [Member] | Consideration Holdback Liability [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair value measurements, Payment Probability | 0.00% | 0.00% |
Fair Value Inputs, Discount Rate | 1.30% | 3.00% |
Level 3 [Member] | Minimum [Member] | Available-For-Sale Securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Inputs, Discount Rate | 2.70% | 0.00% |
Fair Value Inputs, Prepayment Rate | 1.70% | 2.70% |
Fair Value Inputs, Probability of Default | 0.00% | 0.00% |
Fair Value Inputs, Loss Severity | 0.20% | 0.20% |
Level 3 [Member] | Minimum [Member] | Securities Carried At Fair Value With Changed Recorded In Net Income [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Inputs, Discount Rate | 0.00% | 0.00% |
Fair Value Inputs, Prepayment Rate | 5.40% | 2.50% |
Fair Value Inputs, Probability of Default | 0.00% | 0.00% |
Fair Value Inputs, Loss Severity | 7.30% | 3.80% |
Level 3 [Member] | Minimum [Member] | FDIC Receivable [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Inputs, Discount Rate | 7.80% | 7.80% |
Fair Value Inputs, Prepayment Rate | 2.00% | 2.00% |
Fair Value Inputs, Probability of Default | 6.00% | 6.00% |
Fair Value Inputs, Loss Severity | 21.60% | 20.00% |
Level 3 [Member] | Minimum [Member] | Derivative Assets - Non Qualifying [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair value measurements, Borrower Rate | 2.90% | |
Level 3 [Member] | Maximum [Member] | FDIC True-Up Liability [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Inputs, Discount Rate | 3.20% | 4.10% |
Level 3 [Member] | Maximum [Member] | Consideration Holdback Liability [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair value measurements, Payment Probability | 100.00% | 100.00% |
Fair Value Inputs, Discount Rate | 4.00% | 3.00% |
Level 3 [Member] | Maximum [Member] | Available-For-Sale Securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Inputs, Discount Rate | 81.40% | 94.50% |
Fair Value Inputs, Prepayment Rate | 20.60% | 20.80% |
Fair Value Inputs, Probability of Default | 12.80% | 9.50% |
Fair Value Inputs, Loss Severity | 75.20% | 83.50% |
Level 3 [Member] | Maximum [Member] | Securities Carried At Fair Value With Changed Recorded In Net Income [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Inputs, Discount Rate | 37.80% | 19.90% |
Fair Value Inputs, Prepayment Rate | 35.80% | 22.40% |
Fair Value Inputs, Probability of Default | 6.30% | 5.90% |
Fair Value Inputs, Loss Severity | 42.90% | 39.00% |
Level 3 [Member] | Maximum [Member] | FDIC Receivable [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Inputs, Discount Rate | 18.40% | 18.40% |
Fair Value Inputs, Prepayment Rate | 14.00% | 14.00% |
Fair Value Inputs, Probability of Default | 36.00% | 36.00% |
Fair Value Inputs, Loss Severity | 53.20% | 65.00% |
Level 3 [Member] | Maximum [Member] | Derivative Assets - Non Qualifying [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair value measurements, Borrower Rate | 4.50% | |
Level 3 [Member] | Weighted Average [Member] | FDIC True-Up Liability [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Inputs, Discount Rate | 3.20% | 4.10% |
Level 3 [Member] | Weighted Average [Member] | Consideration Holdback Liability [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair value measurements, Payment Probability | 53.80% | 53.80% |
Fair Value Inputs, Discount Rate | 2.20% | 3.00% |
Level 3 [Member] | Weighted Average [Member] | Available-For-Sale Securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Inputs, Discount Rate | 5.30% | 6.40% |
Fair Value Inputs, Prepayment Rate | 9.10% | 9.20% |
Fair Value Inputs, Probability of Default | 4.10% | 4.10% |
Fair Value Inputs, Loss Severity | 36.10% | 36.40% |
Level 3 [Member] | Weighted Average [Member] | Securities Carried At Fair Value With Changed Recorded In Net Income [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Inputs, Discount Rate | 5.40% | 6.30% |
Fair Value Inputs, Prepayment Rate | 11.90% | 11.50% |
Fair Value Inputs, Probability of Default | 4.00% | 4.10% |
Fair Value Inputs, Loss Severity | 24.70% | 25.10% |
Level 3 [Member] | Weighted Average [Member] | FDIC Receivable [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Inputs, Discount Rate | 9.40% | 9.40% |
Fair Value Inputs, Prepayment Rate | 3.20% | 3.60% |
Fair Value Inputs, Probability of Default | 10.50% | 10.80% |
Fair Value Inputs, Loss Severity | 29.20% | 31.60% |
Level 3 [Member] | Weighted Average [Member] | Derivative Assets - Non Qualifying [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair value measurements, Borrower Rate | 3.60% |
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 | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Liabilities - Non Qualifying [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $ (55.5) | $ (26.6) |
Included in earnings, liability | 7.2 | (30.5) |
Included in comprehensive income, liability | ||
Impairment, liability | ||
Purchases, liability | ||
Settlements, liability | ||
Ending balance | (48.3) | (57.1) |
FDIC True-Up Liability [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | (56.9) | |
Included in earnings, liability | (4.4) | |
Included in comprehensive income, liability | ||
Impairment, liability | ||
Purchases, liability | (56.3) | |
Settlements, liability | ||
Ending balance | (61.3) | (56.3) |
Consideration Holdback Liability [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | (60.8) | |
Included in earnings, liability | (0.5) | |
Included in comprehensive income, liability | ||
Impairment, liability | ||
Purchases, liability | (60.8) | |
Settlements, liability | 14.3 | |
Ending balance | (47) | (60.8) |
Available-For-Sale Securities [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | 567.1 | |
Included in earnings, assets | (4.6) | (0.2) |
Included in comprehensive income, assets | 22.1 | (10.9) |
Impairment | (2.2) | |
Purchases, assets | 992.8 | |
Settlements, assets | (72) | (29.2) |
Ending balance | 510.4 | 952.5 |
Securities Carried At Fair Value With Changed Recorded In Net Income [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | 339.7 | |
Included in earnings, assets | 11.6 | |
Included in comprehensive income, assets | ||
Impairment | ||
Purchases, assets | ||
Settlements, assets | (50) | |
Ending balance | 301.3 | |
FDIC Receivable [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | 54.8 | |
Included in earnings, assets | 4.8 | 0.7 |
Included in comprehensive income, assets | ||
Impairment | ||
Purchases, assets | 54.8 | |
Settlements, assets | (10.3) | (1.3) |
Ending balance | 49.3 | 54.2 |
Derivative Assets - Non Qualifying [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | ||
Included in earnings, assets | 0.4 | |
Included in comprehensive income, assets | ||
Impairment | ||
Purchases, assets | ||
Settlements, assets | ||
Ending balance | $ 0.4 |
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 | Sep. 30, 2016 | Dec. 31, 2015 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | $ 1,598 | $ 1,652.5 |
Non-Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | 1,598 | 1,648.3 |
Other real estate owned and repossessed assets | 88.7 | 127.3 |
Impaired loans | 125.6 | 127.6 |
Total | 1,812.3 | 1,903.2 |
Assets held for sale, Total (Losses) | (41.2) | (32) |
Other real estate owned and repossessed assets, Total (Losses) | (5.8) | (5.7) |
Impaired loans, Total (Losses) | (20) | (21.9) |
Total (Losses) | (67) | (59.6) |
Non-Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | ||
Other real estate owned and repossessed assets | ||
Impaired loans | ||
Total | ||
Non-Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | 3.7 | 31 |
Other real estate owned and repossessed assets | ||
Impaired loans | ||
Total | 3.7 | 31 |
Non-Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | 1,594.3 | 1,617.3 |
Other real estate owned and repossessed assets | 88.7 | 127.3 |
Impaired loans | 125.6 | 127.6 |
Total | 1,808.6 | 1,872.2 |
Carrying Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | $ 1,125.3 | $ 738.8 |
Fair Value (Summary Of Fair Val
Fair Value (Summary Of Fair Value Option For FDIC Receiable) (Details) - FDIC Receivable [Member] - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
FDIC receivable, estimated fair value carrying amount | $ 49.3 | $ 54.8 |
FDIC receivable, aggregate unpaid principal | 178.8 | 204.5 |
FDIC receivable, difference between estimated fair value and aggregate unpaid principal balance | $ 129.4 | $ 149.7 |
Fair Value (Carrying And Estima
Fair Value (Carrying And Estimated Fair Values Of Financial Instruments) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Credit balances of factoring clients | $ (1,228.9) | $ (1,344) | $ (1,609.3) |
Unpaid Principal Balance | 3,762 | 4,149.8 | |
Impaired loans carrying amount | $ 143.4 | $ 121.8 | |
Carrying amount of impaired loans percentage of unpaid principal balance | 69.90% | 70.60% | |
Fair value of loans, percentage | 99.20% | 97.30% | |
Unpaid Principal Balance | $ 3,762 | $ 4,149.8 | |
Available-for-sale debt securities | 2,729.2 | ||
Debt securities carried at fair value with changes recorded in net income | 301.3 | 339.7 | |
Loan indemnification | 249 | 338.9 | |
Non-Recurring [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets held for sale (excluding leases) | 1,598 | 1,648.3 | |
Recurring [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available-for-sale debt securities | 2,729.2 | 2,007.8 | |
Recurring [Member] | Non-Qualifying Hedges [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative assets at fair value | 116.1 | 95.6 | |
Derivative liabilities at fair value | (153.3) | (103.3) | |
Recurring [Member] | Qualifying Hedges [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative assets at fair value | 8.8 | 45.5 | |
Derivative liabilities at fair value | (2.1) | (0.3) | |
Commercial Loan [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans (excluding leases) | 26,900 | 27,500 | |
Carrying Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and interest bearing deposits | 7,433.6 | 8,301.5 | |
Assets held for sale (excluding leases) | 1,125.3 | 738.8 | |
Loans (excluding leases) | 27,084.5 | 28,244.2 | |
Investment securities | 3,592.4 | 2,953.8 | |
Indemnification assets | 259.7 | 348.4 | |
Other assets subject to fair value disclosure and unsecured counterparty receivables | 1,094.9 | 1,004.5 | |
Deposits | (32,883.7) | (32,813.8) | |
Borrowings | (16,667.8) | (18,717.1) | |
Credit balances of factoring clients | (1,228.9) | (1,344) | |
Other liabilities subject to fair value disclosure | (1,973.2) | (1,943.5) | |
Carrying Value [Member] | Non-Qualifying Hedges [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative assets at fair value | 116.1 | 95.6 | |
Derivative liabilities at fair value | (153.3) | (103.3) | |
Carrying Value [Member] | Qualifying Hedges [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative assets at fair value | 8.8 | 45.5 | |
Derivative liabilities at fair value | (2.1) | (0.3) | |
Estimated Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and interest bearing deposits | 7,433.6 | 8,301.5 | |
Assets held for sale (excluding leases) | 1,132.9 | 746.7 | |
Loans (excluding leases) | 26,861 | 27,484.6 | |
Investment securities | 3,599.3 | 2,955.2 | |
Indemnification assets | 215.8 | 323.2 | |
Other assets subject to fair value disclosure and unsecured counterparty receivables | 1,094.9 | 1,004.5 | |
Deposits | (33,145.8) | (32,972.2) | |
Borrowings | (17,283.2) | (19,167) | |
Credit balances of factoring clients | (1,228.9) | (1,344) | |
Other liabilities subject to fair value disclosure | (1,973.2) | (1,943.5) | |
Agency claimed indemnification assets | 102.5 | 65.6 | |
Loan indemnification | 0.7 | ||
Estimated Fair Value [Member] | Non-Qualifying Hedges [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative assets at fair value | 116.1 | 95.6 | |
Derivative liabilities at fair value | (153.3) | (103.3) | |
Estimated Fair Value [Member] | Qualifying Hedges [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative assets at fair value | 8.8 | 45.5 | |
Derivative liabilities at fair value | (2.1) | (0.3) | |
Level 1 [Member] | Non-Recurring [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets held for sale (excluding leases) | |||
Level 1 [Member] | Estimated Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and interest bearing deposits | 7,433.6 | 8,301.5 | |
Assets held for sale (excluding leases) | 21.8 | ||
Investment securities | 0.2 | 11.5 | |
Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Unsecured borrowings | 10,600 | 10,700 | |
Level 2 [Member] | Non-Recurring [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets held for sale (excluding leases) | 3.7 | 31 | |
Level 2 [Member] | Recurring [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available-for-sale debt securities | 2,218.8 | 1,440.7 | |
Level 2 [Member] | Recurring [Member] | Non-Qualifying Hedges [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative assets at fair value | 115.7 | 95.6 | |
Derivative liabilities at fair value | (105) | (47.8) | |
Level 2 [Member] | Recurring [Member] | Qualifying Hedges [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative assets at fair value | 8.8 | 45.5 | |
Derivative liabilities at fair value | (2.1) | (0.3) | |
Level 2 [Member] | Estimated Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets held for sale (excluding leases) | 164.5 | 55.8 | |
Loans (excluding leases) | 430 | 975.5 | |
Investment securities | 2,446.6 | 1,678.7 | |
Borrowings | (15,214.2) | (16,358.2) | |
Level 2 [Member] | Estimated Fair Value [Member] | Non-Qualifying Hedges [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative assets at fair value | 115.7 | 95.6 | |
Derivative liabilities at fair value | (105) | (47.8) | |
Level 2 [Member] | Estimated Fair Value [Member] | Qualifying Hedges [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative assets at fair value | 8.8 | 45.5 | |
Derivative liabilities at fair value | (2.1) | (0.3) | |
Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets held for sale (excluding leases) | 1,598 | 1,652.5 | |
Level 3 [Member] | Non-Recurring [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets held for sale (excluding leases) | 1,594.3 | 1,617.3 | |
Level 3 [Member] | Recurring [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available-for-sale debt securities | 510.4 | 567.1 | |
Level 3 [Member] | Recurring [Member] | Non-Qualifying Hedges [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative assets at fair value | 0.4 | ||
Derivative liabilities at fair value | (48.3) | (55.5) | |
Level 3 [Member] | Estimated Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets held for sale (excluding leases) | 968.4 | 669.1 | |
Loans (excluding leases) | 26,431 | 26,509.1 | |
Investment securities | 1,152.5 | 1,265 | |
Indemnification assets | 215.8 | 323.2 | |
Other assets subject to fair value disclosure and unsecured counterparty receivables | 1,094.9 | 1,004.5 | |
Deposits | (33,145.8) | (32,972.2) | |
Borrowings | (2,069) | (2,808.8) | |
Credit balances of factoring clients | (1,228.9) | (1,344) | |
Other liabilities subject to fair value disclosure | (1,973.2) | (1,943.5) | |
Available-for-sale debt securities | 510.4 | 567.1 | |
Debt securities carried at fair value with changes recorded in net income | 301.3 | 339.7 | |
Non-marketable investments | 272.7 | 291.9 | |
Held-to-maturity securities | 68.1 | 66.3 | |
Level 3 [Member] | Estimated Fair Value [Member] | Non-Qualifying Hedges [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative assets at fair value | 0.4 | ||
Derivative liabilities at fair value | $ (48.3) | $ (55.5) |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation reclassification adjustments | $ 18,800,000 | $ 4,700,000 | $ 22,200,000 | |
Foreign currency translation reclassification adjustments, tax | $ (1,400,000) | (20,400,000) | 13,300,000 | (33,500,000) |
Reclassification adjustments impacting net income for unrealized gains (losses) on AFS securities | 0 | 0 | ||
Changes in benefit plans net gain/(loss) and prior service (cost)/credit | 100,000 | 500,000 | 1,500,000 | 600,000 |
Reclassification adjustments impacting net income | 100,000 | 19,300,000 | 6,200,000 | 22,800,000 |
Change in income taxes associated with changes in benefit plans net gain/(loss) and prior service (cost)/credit | (300,000) | (300,000) | ||
Change in income taxes associated with net unrealized gains on available for sale securities | $ (3,300,000) | $ 4,000,000 | (12,400,000) | 3,800,000 |
Foreign Currency Translation Adjustments Gains (Losses) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification adjustments impacting net income | 4,700,000 | 22,200,000 | ||
Changes In Benefit Plan Net Gain (Loss) And Prior Service (Cost) Credit [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification adjustments impacting net income | 1,500,000 | 600,000 | ||
Unrealized Net Gains (Losses) On Available For Sale Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification adjustments impacting net income |
Stockholders' Equity (Component
Stockholders' Equity (Components Of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Gross Unrealized | $ (80.5) | $ (117.5) | ||
Income Taxes | (23.7) | (24.6) | ||
Total accumulated other comprehensive loss, Net Unrealized | (104.2) | (142.1) | $ (174.3) | $ (133.9) |
Foreign Currency Translation Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Gross Unrealized | (26.8) | (29.8) | ||
Income Taxes | (22.6) | (35.9) | ||
Total accumulated other comprehensive loss, Net Unrealized | (49.4) | (65.7) | ||
Changes In Benefit Plan Net Gain (Loss) And Prior Service (Cost) / Credit [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Gross Unrealized | (75) | (76.3) | ||
Income Taxes | 7 | 7 | ||
Total accumulated other comprehensive loss, Net Unrealized | (68) | (69.3) | ||
Unrealized Net Gains (Losses) On Available For Sale Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Gross Unrealized | 21.3 | (11.4) | ||
Income Taxes | (8.1) | 4.3 | ||
Total accumulated other comprehensive loss, Net Unrealized | $ 13.2 | $ (7.1) |
Stockholders' Equity (Changes I
Stockholders' Equity (Changes In Accumulated Other Comprehensive Loss By Component) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ (142.1) | $ (133.9) | ||
AOCI activity before reclassification | 31.7 | (63.2) | ||
Amounts reclassified from AOCI | $ 0.1 | $ 19.3 | 6.2 | 22.8 |
Net current period AOCI | 3.5 | (15.5) | 37.9 | (40.4) |
Ending balance | (104.2) | (174.3) | (104.2) | (174.3) |
Foreign Currency Translation Adjustments Gains (Losses) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (65.7) | (75.4) | ||
AOCI activity before reclassification | 11.6 | (55.6) | ||
Amounts reclassified from AOCI | 4.7 | 22.2 | ||
Net current period AOCI | 16.3 | (33.4) | ||
Ending balance | (49.4) | (108.8) | (49.4) | (108.8) |
Changes In Benefit Plan Net Gain (Loss) And Prior Service (Cost) Credit [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (69.3) | (58.5) | ||
AOCI activity before reclassification | (0.2) | (1.7) | ||
Amounts reclassified from AOCI | 1.5 | 0.6 | ||
Net current period AOCI | 1.3 | (1.1) | ||
Ending balance | (68) | (59.6) | (68) | (59.6) |
Unrealized Net Gains (Losses) On Available For Sale Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (7.1) | |||
AOCI activity before reclassification | 20.3 | (5.9) | ||
Amounts reclassified from AOCI | ||||
Net current period AOCI | 20.3 | (5.9) | ||
Ending balance | $ 13.2 | $ (5.9) | $ 13.2 | $ (5.9) |
Stockholders' Equity (Reclassif
Stockholders' Equity (Reclassifications Out Of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Gross Amount | $ 0.1 | $ 19.9 | $ 5.3 | $ 23.5 |
Tax | (0.6) | 0.9 | (0.7) | |
Net Amount | 0.1 | 19.3 | 6.2 | 22.8 |
Foreign Currency Translation Adjustments Gains (Losses) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net Amount | 4.7 | 22.2 | ||
Foreign Currency Translation Adjustments Gains (Losses) [Member] | Other Income [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Gross Amount | 19.2 | 3.6 | 22.6 | |
Tax | (0.4) | 1.1 | (0.4) | |
Net Amount | 18.8 | 4.7 | 22.2 | |
Changes In Benefit Plan Net Gain (Loss) And Prior Service (Cost) Credit [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net Amount | 1.5 | 0.6 | ||
Changes In Benefit Plan Net Gain (Loss) And Prior Service (Cost) Credit [Member] | Operating Expenses [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Gross Amount | 0.1 | 0.7 | 1.7 | 0.9 |
Tax | (0.2) | (0.2) | (0.3) | |
Net Amount | $ 0.1 | $ 0.5 | 1.5 | 0.6 |
Unrealized Net Gains (Losses) On Available For Sale Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net Amount |
Regulatory Capital (Narrative)
Regulatory Capital (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2016segment | |
Number of risk-weighting categories | 4 |
CET1 minimum ratio | 4.50% |
Tier 1 Capital minimum ratio | 6.00% |
Total Capital minimum ratio | 8.00% |
Risk-Weighting Category 1 [Member] | |
Risk rating category percentage | 0.00% |
Risk-Weighting Category 2 [Member] | |
Risk rating category percentage | 20.00% |
Risk-Weighting Category 3 [Member] | |
Risk rating category percentage | 50.00% |
Risk-Weighting Category 4 [Member] | |
Risk rating category percentage | 100.00% |
Minimum [Member] | |
Standardized Approach, risk-sensitive nature of exposure, percentage | 0.00% |
Capital conservation buffer future yearly increase, percentage | 0.625% |
Maximum [Member] | |
Standardized Approach, risk-sensitive nature of exposure, percentage | 1250.00% |
Final future percentage of capital conservation buffer | 2.50% |
Regulatory Capital (Tier 1 Capi
Regulatory Capital (Tier 1 Capital And Total Capital Components) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||||
Total stockholders' equity | $ 11,237 | $ 10,978.1 | ||||
Less: Goodwill | (1,170.5) | (1,198.3) | ||||
Qualifying allowance for credit losses and other reserves | $ 421.7 | $ 399.4 | 360.2 | $ 335 | $ 350.9 | $ 346.4 |
Total Capital (to risk-weighted assets), Actual | 4.50% | |||||
Effective minimum ratios under Basel III guidelines | 6.00% | |||||
Total Capital (to risk-weighted assets), Actual | 8.00% | |||||
Percentage of net unrealized pretax gains permitted in Tier 2 capital on AFS equity securities | 45.00% | |||||
CIT Group Inc [Member] | ||||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||||
Total stockholders' equity | $ 11,237 | 10,978.1 | ||||
Effect of certain items in accumulated other comprehensive loss excluded from Tier 1 Capital and qualifying noncontrolling interest | 55.3 | 76.9 | ||||
Adjusted total equity | 11,292.3 | 11,055 | ||||
Less: Goodwill | (1,099.8) | (1,130.8) | ||||
Disallowed deferred tax assets | (804.4) | (904.5) | ||||
Disallowed intangible assets | (71.3) | (53.6) | ||||
Other Tier 1 components | (5.8) | (0.1) | ||||
Common Equity Tier One Capital | 9,311 | 8,966 | ||||
Tier 1 Capital | 9,311 | 8,966 | ||||
Qualifying allowance for credit losses and other reserves | 469.3 | 403.3 | ||||
Total qualifying capital | 9,780.3 | 9,369.3 | ||||
Risk-weighted assets | $ 66,802.2 | $ 69,563.6 | ||||
Total Capital (to risk-weighted assets), Actual | 13.90% | 12.90% | ||||
Effective minimum ratios under Basel III guidelines | 5.125% | 4.50% | ||||
Tier 1 Capital (to risk-weighted assets), Actual | 13.90% | 12.90% | ||||
Effective minimum ratios under Basel III guidelines | 6.625% | 6.00% | ||||
Total Capital (to risk-weighted assets), Actual | 14.60% | 13.50% | ||||
Effective minimum ratios under Basel III guidelines | 8.625% | 8.00% | ||||
Tier 1 Leverage Ratio, Actual | 14.40% | 13.50% | ||||
Required minimum ratio for capital adequacy purposes | 4.00% | 4.00% | ||||
CIT Bank [Member] | ||||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||||
Total stockholders' equity | $ 5,535.1 | $ 5,606.4 | ||||
Effect of certain items in accumulated other comprehensive loss excluded from Tier 1 Capital and qualifying noncontrolling interest | (13.3) | 7 | ||||
Adjusted total equity | 5,521.8 | 5,613.4 | ||||
Less: Goodwill | (810.3) | (830.8) | ||||
Disallowed intangible assets | (83.1) | (58.3) | ||||
Common Equity Tier One Capital | 4,628.4 | 4,724.3 | ||||
Tier 1 Capital | 4,628.4 | 4,724.3 | ||||
Qualifying allowance for credit losses and other reserves | 439.5 | 374.7 | ||||
Other Tier 2 components | 0.1 | |||||
Total qualifying capital | 5,068 | 5,099 | ||||
Risk-weighted assets | $ 35,239.4 | $ 36,809.5 | ||||
Total Capital (to risk-weighted assets), Actual | 13.10% | 12.80% | ||||
Effective minimum ratios under Basel III guidelines | 5.125% | 4.50% | ||||
Tier 1 Capital (to risk-weighted assets), Actual | 13.10% | 12.80% | ||||
Effective minimum ratios under Basel III guidelines | 6.625% | 6.00% | ||||
Total Capital (to risk-weighted assets), Actual | 14.40% | 13.90% | ||||
Effective minimum ratios under Basel III guidelines | 8.625% | 8.00% | ||||
Tier 1 Leverage Ratio, Actual | 10.90% | 10.90% | ||||
Required minimum ratio for capital adequacy purposes | 4.00% | 4.00% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | ||||||
Effective income tax rate | 27.00% | 24.00% | 31.00% | 27.00% | ||
Net discrete expense (benefit) | $ (593) | $ (598) | ||||
Tax expense related to uncertain tax positions | 29 | |||||
Tax benefit related to uncertain tax positions | 9 | $ 9 | $ 14 | |||
Miscellaneous other adjustments | $ 6 | |||||
Decrease to deferred tax assets, foreign reporting entities | $ 70 | |||||
Liability for uncertain tax positions | 38 | 38 | $ 46.7 | |||
Potential decrease to tax benefits, minimum | 5 | 5 | ||||
Accrual for interest and penalties | 11.9 | 11.9 | 18 | |||
Domestic And International [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Net discrete expense (benefit) | 28 | |||||
U.S. Federal [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Tax expense (benefit) from deferred tax asset valuation allowance | $ 647 | |||||
Foreign Tax Authority [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Net discrete expense (benefit) | 16 | 8 | ||||
Tax expense (benefit) from deferred tax asset valuation allowance | 16 | |||||
Deferred tax assets, valuation allowance | 37 | 37 | $ 91 | |||
China Reporting Entities [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Deferred tax assets, valuation allowance | $ 16 | $ 16 |
Commitments (Narrative) (Detail
Commitments (Narrative) (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2016USD ($)item | Dec. 31, 2015USD ($) | |
Commitments [Line Items] | ||
Financing commitments on which criteria for funding have not been completed | $ 1,100 | $ 859 |
Financing commitments to Trade Finance clients that are cancelable only after a notice period, amount | 425 | 406 |
Additional funding commitments | 1,600 | 1,700 |
Other liabilities | 3,168.3 | 3,158.7 |
Commitments and investments that qualify for community reinvestment tax credit | 7 | |
Deferred Purchase Agreements [Member] | ||
Commitments [Line Items] | ||
DPA credit protection provided to clients | 1,984 | 1,720 |
DPA credit line agreements net of Deferred Purchase Agreement credit protection | 92 | 87 |
Other liabilities | $ 5.7 | $ 4.4 |
Contractual Commitments [Member] | ||
Commitments [Line Items] | ||
Railcars | item | 3,500 | |
Purchase and Funding Commitments [Member] | ||
Commitments [Line Items] | ||
Aircraft remaining to be purchased, contractual commitments | item | 131 | |
HECM Reverse Mortgage Loan Commitments [Member] | ||
Commitments [Line Items] | ||
Additional funding commitments | $ 44 | |
Maximum [Member] | ||
Commitments [Line Items] | ||
Typical notice period | 90 days | |
Maximum [Member] | Deferred Purchase Agreements [Member] | ||
Commitments [Line Items] | ||
DPA credit line agreements, cancellation notice period | 90 days | |
Minimum [Member] | ||
Commitments [Line Items] | ||
Percent required of claim amount for loan service | 98.00% | |
OneWest Bank [Member] | ||
Commitments [Line Items] | ||
Net exposure for loan commitments | $ 54 | |
OneWest Bank [Member] | Maximum [Member] | ||
Commitments [Line Items] | ||
FDIC Indemnification Asset, Additional Estimated Losses | 200 | |
OneWest Bank [Member] | Minimum [Member] | ||
Commitments [Line Items] | ||
FDIC Indemnification Asset, Period Increase (Decrease) | 200 | |
IndyMac Transaction [Member] | ||
Commitments [Line Items] | ||
FDIC Indemnification Asset, Period Increase (Decrease) | $ 200 |
Commitments (Summary Of Commitm
Commitments (Summary Of Commitments) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Commitments [Abstract] | ||
Financing assets - Due to Expire Within One Year | $ 1,417.1 | |
Financing assets - Due to Expire After One Year | 5,326.1 | |
Financing assets - Total Outstanding | 6,743.2 | $ 7,385.6 |
Standby letters of credit - Due to Expire Within One Year | 31.9 | |
Standby letters of credit - Due to Expire After One Year | 197.9 | |
Standby letters of credit - Total Outstanding | 229.8 | 315.3 |
Other letters of credit - Due to Expire Within One Year | 11.5 | |
Other letters of credit - Total Outstanding | 11.5 | 18.3 |
Deferred purchase credit protection agreements - Due to Expire Within One Year | 2,076.5 | |
Deferred purchase credit protection agreements - Total Outstanding | 2,076.5 | 1,806.5 |
Guarantees, acceptances and other recourse obligations - Due to Expire Within One Year | 2.4 | |
Guarantees, acceptances and other recourse obligations - Total Outstanding | 2.4 | 0.7 |
Aerospace purchase commitments - Due To Expire Within One Year | 591.2 | |
Aerospace purchase commitments - Due To Expire After One Year | 8,346.1 | |
Aerospace purchase commitments - Total Outstanding | 8,937.3 | 9,618.1 |
Rail and other purchase commitments - Due to Expire Within One Year | 395.9 | |
Rail and other purchase commitments - Due to Expire After One Year | 27.8 | |
Rail and other purchase commitments - Total Outstanding | $ 423.7 | $ 898.2 |
Contingencies (Narrative) (Deta
Contingencies (Narrative) (Details) - 9 months ended Sep. 30, 2016 BRL in Millions, $ in Millions | USD ($) | BRL | USD ($) |
Contingencies [Line Items] | |||
Reasonably possible litigation losses in excess of established reserves and insurance | $ 115 | ||
Indemnification liability | 25 | ||
Maximum [Member] | |||
Contingencies [Line Items] | |||
Accrued liability estimable losses | $ 55 | ||
Sao Paulo [Member] | Tax Years 2006 to 2009 [Member] | |||
Contingencies [Line Items] | |||
Tax assessments and penalties claimed | BRL 75 | 23 | |
Ocwen Loan Servicing, LLC ("Ocwen") [Member] | Indemnification Agreement [Member] | |||
Contingencies [Line Items] | |||
Indemnifications, aggregate amount | $ 150 | ||
Cumulative payments for claims arising from servicing errors | $ 49 | ||
Indemnification obligation expiration, term | 3 years |
Certain Relationships And Re108
Certain Relationships And Related Transactions (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2015USD ($)property | Sep. 30, 2016USD ($)property | Dec. 31, 2015USD ($)property | Dec. 31, 2014propertysegment | |
Related Party Transaction [Line Items] | ||||
Number of joint ventures | segment | 2 | |||
Other assets | $ 3,319 | $ 3,297.6 | ||
Unpaid balance of subserviced loans for related party | $ 178.8 | 204.5 | ||
Strategic Credit Partners Holdings LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Equity interest percentage | 10.00% | |||
Loans sold in joint venture | $ 164 | |||
Equity investment | 9.5 | 4.6 | ||
TC-CIT Aviation [Member] | ||||
Related Party Transaction [Line Items] | ||||
Equity investment | 65 | |||
Revolving Credit Facility [Member] | ||||
Related Party Transaction [Line Items] | ||||
Credit facility, amount | 0 | 0 | ||
Investments In Non-Consolidated Entities [Member] | ||||
Related Party Transaction [Line Items] | ||||
Other assets | $ 243 | $ 224 | ||
TC-CIT Aviation [Member] | ||||
Related Party Transaction [Line Items] | ||||
Number of commercial aircrafts sold | property | 5 | 0 | 14 | 9 |
Servicing fees | $ 7.1 | |||
Aggregate value of commercial aircrafts | $ 240 | $ 600 | ||
TC-CIT Aviation, Additional Aircraft Sold In Year [Member] | ||||
Related Party Transaction [Line Items] | ||||
Number of commercial aircrafts sold | property | 5 | |||
Aggregate value of commercial aircrafts | $ 226 |
Business Segment Information (N
Business Segment Information (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2016segmentstoreitem | |
Number of operating segments | segment | 4 |
Number of branches | store | 70 |
Commercial Banking [Member] | |
Number of divisions | 3 |
Transportation Finance [Member] | |
Number of divisions | 3 |
Business Segment Information (S
Business Segment Information (Segment Pre-Tax Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | ||||
Interest income | $ 490.1 | $ 437.7 | $ 1,480.8 | $ 1,002.5 | ||||
Interest expense | (279.4) | (280.3) | (848.3) | (816.8) | ||||
Provision for credit losses | (46.2) | (49.9) | (173.6) | (102.9) | ||||
Rental income on operating leases | 563.6 | 539.3 | 1,708.3 | 1,601.6 | ||||
Other income (expense) | 73.9 | 39.2 | 279.1 | 189.1 | ||||
Depreciation on operating lease equipment | (179.1) | (159.1) | (530.8) | (473.7) | ||||
Maintenance and other operating lease expenses | (60.4) | (55.9) | (181.5) | (151.4) | ||||
Operating expenses / loss on debt extinguishment and deposit redemption | (337.1) | (334.2) | (1,028.8) | (810.9) | ||||
Income (loss) from continuing operations before (provision) benefit for income taxes | 225.4 | 136.8 | 705.2 | 437.5 | ||||
Loans | 29,918.2 | 32,406.2 | 29,918.2 | 32,406.2 | $ 31,671.7 | |||
Credit balances of factoring clients | 1,228.9 | 1,609.3 | 1,228.9 | 1,609.3 | 1,344 | |||
Assets held for sale | 2,462.1 | [1] | 2,154.3 | 2,462.1 | [1] | 2,154.3 | 2,092.4 | [1] |
Operating lease equipment, net | 16,954.8 | [1] | 15,538.2 | 16,954.8 | [1] | 15,538.2 | $ 16,617 | [1] |
Transportation Finance [Member] | Operating Segments [Member] | ||||||||
Interest income | 51.3 | 50.2 | 153.9 | 137.3 | ||||
Interest expense | (146.7) | (139.7) | (441.3) | (439) | ||||
Provision for credit losses | (5.5) | 1.6 | (43.8) | (5.9) | ||||
Rental income on operating leases | 527.9 | 505.7 | 1,609 | 1,500.3 | ||||
Other income (expense) | 6.5 | 23 | 37 | 72.2 | ||||
Depreciation on operating lease equipment | (154.7) | (137.5) | (464.9) | (410.1) | ||||
Maintenance and other operating lease expenses | (60.4) | (55.9) | (181.5) | (151.4) | ||||
Operating expenses / loss on debt extinguishment and deposit redemption | (61.8) | (53.6) | (184.7) | (184.6) | ||||
Income (loss) from continuing operations before (provision) benefit for income taxes | 156.6 | 193.8 | 483.7 | 518.8 | ||||
Loans | 2,224.2 | 3,305.5 | 2,224.2 | 3,305.5 | ||||
Assets held for sale | 1,084.6 | 142.3 | 1,084.6 | 142.3 | ||||
Operating lease equipment, net | 16,606.2 | 15,287.3 | 16,606.2 | 15,287.3 | ||||
Commercial Banking [Member] | Operating Segments [Member] | ||||||||
Interest income | 285 | 251.5 | 861.3 | 618.7 | ||||
Interest expense | (76.2) | (67.3) | (224.5) | (196.8) | ||||
Provision for credit losses | (39.2) | (43.2) | (124.1) | (85.6) | ||||
Rental income on operating leases | 31.9 | 24.6 | 87.7 | 71.5 | ||||
Other income (expense) | 65.9 | 70.7 | 182.3 | 201.6 | ||||
Depreciation on operating lease equipment | (24.4) | (18.1) | (65.9) | (52.8) | ||||
Operating expenses / loss on debt extinguishment and deposit redemption | (161.2) | (146.5) | (468.3) | (410.5) | ||||
Income (loss) from continuing operations before (provision) benefit for income taxes | 81.8 | 71.7 | 248.5 | 146.1 | ||||
Loans | 20,564.7 | 21,849.5 | 20,564.7 | 21,849.5 | ||||
Credit balances of factoring clients | 1,228.9 | 1,609.3 | 1,228.9 | 1,609.3 | ||||
Assets held for sale | 331.7 | 174.4 | 331.7 | 174.4 | ||||
Operating lease equipment, net | 348.6 | 250.9 | 348.6 | 250.9 | ||||
Consumer And Community Banking [Member] | Operating Segments [Member] | ||||||||
Interest income | 102.9 | 73.9 | 311.5 | 73.9 | ||||
Interest expense | (1.9) | (13.8) | (16.7) | (13.8) | ||||
Provision for credit losses | (1.6) | (5.1) | (5.8) | (5.1) | ||||
Other income (expense) | 7.1 | 0.1 | 26.9 | 0.1 | ||||
Operating expenses / loss on debt extinguishment and deposit redemption | (87.7) | (59) | (263.2) | (59) | ||||
Income (loss) from continuing operations before (provision) benefit for income taxes | 18.8 | (3.9) | 52.7 | (3.9) | ||||
Loans | 7,129.3 | 7,251.2 | 7,129.3 | 7,251.2 | ||||
Assets held for sale | 41.7 | 45.8 | 41.7 | 45.8 | ||||
Non-Strategic Portfolios [Member] | Operating Segments [Member] | ||||||||
Interest income | 22.6 | 43.7 | 70.8 | 145.3 | ||||
Interest expense | (12.7) | (27.3) | (40.9) | (99.3) | ||||
Provision for credit losses | 0.1 | (3.2) | 0.1 | (6.3) | ||||
Rental income on operating leases | 3.8 | 9 | 11.6 | 29.8 | ||||
Other income (expense) | 4.9 | (35.4) | 26.1 | (42.6) | ||||
Depreciation on operating lease equipment | (3.5) | (10.8) | ||||||
Operating expenses / loss on debt extinguishment and deposit redemption | (11) | (26) | (35.2) | (97.6) | ||||
Income (loss) from continuing operations before (provision) benefit for income taxes | 7.7 | (42.7) | 32.5 | (81.5) | ||||
Assets held for sale | 1,004.1 | 1,791.8 | 1,004.1 | 1,791.8 | ||||
Corporate And Other [Member] | Corporate, Non-Segment [Member] | ||||||||
Interest income | 28.3 | 18.4 | 83.3 | 27.3 | ||||
Interest expense | (41.9) | (32.2) | (124.9) | (67.9) | ||||
Other income (expense) | (10.5) | (19.2) | 6.8 | (42.2) | ||||
Operating expenses / loss on debt extinguishment and deposit redemption | (15.4) | (49.1) | (77.4) | (59.2) | ||||
Income (loss) from continuing operations before (provision) benefit for income taxes | $ (39.5) | $ (82.1) | $ (112.2) | $ (142) | ||||
[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. |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) - USD ($) $ in Millions | Aug. 04, 2015 | Aug. 03, 2015 | Aug. 01, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Sep. 30, 2016 | Dec. 31, 2015 |
Nacco [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of outstanding shares acquired | 100.00% | 100.00% | |||||
Purchase price | $ 250 | ||||||
Goodwill acquired | $ 77 | ||||||
Direct Capital [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of outstanding shares acquired | 100.00% | ||||||
Purchase price | $ 230 | ||||||
Goodwill acquired | 170 | ||||||
Intangible assets acquired | $ 12 | ||||||
OneWest Bank [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of outstanding shares acquired | 100.00% | ||||||
Purchase price | $ 3,400 | ||||||
Goodwill acquired | $ 642.5 | $ 663 | |||||
Acquisition date | Aug. 3, 2015 | ||||||
Consumer And Community Banking [Member] | OneWest Bank [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill acquired | $ 362.6 |
Goodwill (Summary Of Goodwill)
Goodwill (Summary Of Goodwill) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Goodwill [Line Items] | |
December 31, 2015 | $ 1,198.3 |
Additions, Other activity | (27.8) |
June 30, 2016 | 1,170.5 |
Transportation Finance [Member] | |
Goodwill [Line Items] | |
December 31, 2015 | 245 |
Additions, Other activity | (7.3) |
June 30, 2016 | 237.7 |
Commercial Banking [Member] | |
Goodwill [Line Items] | |
December 31, 2015 | 579.1 |
Additions, Other activity | (8.9) |
June 30, 2016 | 570.2 |
Consumer And Community Banking [Member] | |
Goodwill [Line Items] | |
December 31, 2015 | 374.2 |
Additions, Other activity | (11.6) |
Prior period adjustment | 23.2 |
June 30, 2016 | $ 362.6 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | 1 Months Ended | ||||
Oct. 31, 2016USD ($)employee | Oct. 06, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Subsequent Event [Line Items] | |||||
Assets of discontinued operations | $ 452.9 | $ 500.5 | |||
Liabilities of discontinued operations | 927.8 | $ 696.2 | |||
Amended Capital Plan [Member] | |||||
Subsequent Event [Line Items] | |||||
Common equity return to shareholders | 2,975 | ||||
Dividends on common stock payable per year | 64 | ||||
Contingent additional common equity return | $ 325 | ||||
CIT Commercial Air Business [Member] | |||||
Subsequent Event [Line Items] | |||||
Assets of discontinued operations | $ 11.1 | ||||
Liabilities of discontinued operations | $ 1.7 | ||||
Subsequent Event [Member] | CIT Commercial Air Business [Member] | |||||
Subsequent Event [Line Items] | |||||
Adjusted net assets, total | $ 9.4 | ||||
Purchase price | 10 | ||||
Additional premium to purchase price | 627 | ||||
Escrow deposit | 500 | ||||
Increase to escrow deposit pending transaction | $ 600 | ||||
Subsequent Event [Member] | CIT Canada [Member] | |||||
Subsequent Event [Line Items] | |||||
Assets of discontinued operations | $ 700 | ||||
Number of employees, transferred | employee | 135 |