Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 31, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
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 | 135,428,246 |
Consolidated Balance Sheets (U
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Assets | |||
Cash and due from banks, including restricted balances of $114.9 and $176.1 at June 30, 2017 and December 31, 2016, respectively (see Note 6 for amounts pledged) | [1] | $ 598.9 | $ 822.1 |
Cash and interest bearing deposits | [1] | 4,739 | 5,608.5 |
Investment securities, including securities carried at fair value with changes recorded in net income of $255.6 and $283.5 at June 30, 2017 and December 31, 2016, respectively (see Note 6 for amounts pledged) | 5,530 | 4,491.1 | |
Assets held for sale | [1] | 1,324.8 | 636 |
Loans | 29,031.7 | 29,535.9 | |
Allowance for loan losses | (426) | (432.6) | |
Total loans, net of allowance for loan losses | [1] | 28,605.7 | 29,103.3 |
Operating lease equipment, net | [1] | 6,736 | 7,486.1 |
Indemnification assets | 208.5 | 341.4 | |
Unsecured counterparty receivable | 205 | 394.5 | |
Goodwill | 625.5 | 685.4 | |
Intangible assets | 125.4 | 140.7 | |
Other assets, including $79.4 and $111.6 at June 30, 2017 and December 31, 2016, respectively, at fair value | 1,149.2 | 1,240.4 | |
Assets of discontinued operations | 630.9 | 13,220.7 | |
Total Assets | 50,478.9 | 64,170.2 | |
Liabilities | |||
Deposits | 30,925 | 32,304.3 | |
Credit balances of factoring clients | 1,405.3 | 1,292 | |
Other liabilities, including $225.4 and $177.9 at June 30, 2017 and December 31, 2016, respectively, at fair value | 1,567.9 | 1,897.6 | |
Borrowings, including $250.6 and $2,321.7 contractually due within twelve months at June 30, 2017 and December 31, 2016, respectively | 8,621.4 | 14,935.5 | |
Liabilities of discontinued operations | 607.8 | 3,737.7 | |
Total Liabilities | 43,127.4 | 54,167.1 | |
Stockholders’ Equity | |||
Preferred Stock: $0.01 par value, 100,000,000 authorized, 325,000 shares issued and outstanding | 325 | 0 | |
Issued: 207,336,689 and 206,182,213 at June 30, 2017 and December 31, 2016, respectively | 2.1 | 2.1 | |
Paid-in capital | 8,711.8 | 8,765.8 | |
Retained earnings | 1,826.9 | 1,553 | |
Accumulated other comprehensive loss | (88.4) | (140.1) | |
Treasury stock: 71,918,094 and 4,094,541 shares at June 30, 2017 and December 31, 2016 at cost, respectively | (3,426.2) | (178.1) | |
Total Common Stockholders’ Equity | 7,026.2 | 10,002.7 | |
Noncontrolling minority interests | 0.3 | 0.4 | |
Total Equity | 7,351.5 | 10,003.1 | |
Total Liabilities and Equity | 50,478.9 | 64,170.2 | |
Variable Interest Entities [Member] | |||
Assets | |||
Cash and due from banks, including restricted balances of $114.9 and $176.1 at June 30, 2017 and December 31, 2016, respectively (see Note 6 for amounts pledged) | 93.2 | 99.9 | |
Total loans, net of allowance for loan losses | 181.4 | 300.5 | |
Operating lease equipment, net | 764.4 | 775.8 | |
Assets of discontinued operations | 0 | 2,321.7 | |
Total Assets | 1,039 | 3,497.9 | |
Liabilities | |||
Beneficial interests issued by consolidated VIEs (classified as long-term borrowings) | 647.4 | 770 | |
Liabilities of discontinued operations | 0 | 1,204.6 | |
Total Liabilities | $ 647.4 | $ 1,974.6 | |
[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.Assets Cash and interest bearing deposits, restricted$93.2 $99.9Total loans, net of allowance for loan losses181.4 300.5Operating lease equipment, net764.4 775.8Assets of discontinued operations— 2,321.7Total Assets$1,039.0 $3,497.9Liabilities Beneficial interests issued by consolidated VIEs (classified as long-term borrowings)$647.4 $770.0Liabilities of discontinued operations— 1,204.6Total Liabilities$647.4 $1,974.6 |
Consolidated Balance Sheets (3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Restricted cash and due from banks | $ 114.9 | $ 176.1 |
Restricted interest-bearing deposits | 93.6 | 102.8 |
Securities carried at fair value with changes recorded in net income | 255.6 | 283.5 |
Other assets at fair value | 79.4 | 111.6 |
Other liabilities at fair value | 225.4 | 177.9 |
Borrowings contractually due within twelve months | $ 250.6 | $ 2,321.7 |
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0 |
Preferred Stock, shares authorized | 100,000,000 | 0 |
Preferred Stock, shares issued | 325,000 | 0 |
Preferred Stock, shares outstanding | 325,000 | 0 |
Common Stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 600,000,000 | 600,000,000 |
Common Stock, shares issued | 207,336,689 | 206,182,213 |
Common Stock, shares outstanding | 135,418,595 | 202,087,672 |
Treasury stock, shares at cost | 71,918,094 | 4,094,541 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Interest income | ||||
Interest and fees on loans | $ 421.3 | $ 447.6 | $ 833.4 | $ 899.5 |
Other interest and dividends | 56.9 | 31.1 | 100.5 | 62.1 |
Interest income | 478.2 | 478.7 | 933.9 | 961.6 |
Interest expense | ||||
Interest on borrowings | (114.6) | (92.2) | (183.7) | (187.7) |
Interest on deposits | (94.6) | (99.4) | (188.6) | (198.9) |
Interest expense | (209.2) | (191.6) | (372.3) | (386.6) |
Net interest revenue | 269 | 287.1 | 561.6 | 575 |
Provision for credit losses | (4.4) | (23.3) | (54.1) | (112.8) |
Net interest revenue, after credit provision | 264.6 | 263.8 | 507.5 | 462.2 |
Non-interest income | ||||
Rental income on operating leases | 251.2 | 261 | 502.5 | 525.1 |
Other non-interest income | 84.6 | 99.8 | 163.7 | 184.6 |
Total non-interest income | 335.8 | 360.8 | 666.2 | 709.7 |
Total revenue, net of interest expense and credit provision | 600.4 | 624.6 | 1,173.7 | 1,171.9 |
Non-interest expenses | ||||
Depreciation on operating lease equipment | (77.4) | (63.1) | (150.9) | (124.4) |
Maintenance and other operating lease expenses | (53.3) | (50.6) | (107.1) | (99.5) |
Operating expenses | (295.6) | (309.3) | (607.2) | (639.4) |
Loss on debt extinguishment and deposit redemption | (164.8) | (2.4) | (164.8) | (4) |
Total non-interest expenses | (591.1) | (425.4) | (1,030) | (867.3) |
Income from continuing operations before benefit (provision) for income taxes | 9.3 | 199.2 | 143.7 | 304.6 |
Benefit (provision) for income taxes | 31.9 | (111.2) | (24.3) | (155.6) |
Income from continuing operations | 41.2 | 88 | 119.4 | 149 |
Discontinued Operations | ||||
Income (loss) from discontinued operations, net of taxes | 8.3 | (71) | 97.3 | 14 |
Gain on sale of discontinued operations, net of taxes | 107.2 | 0 | 119.9 | 0 |
Total income (loss) from discontinued operations, net of taxes | 115.5 | (71) | 217.2 | 14 |
Net Income | $ 156.7 | $ 17 | $ 336.6 | $ 163 |
Basic income per common share | ||||
Income from continuing operations (in dollars per share) | $ 0.23 | $ 0.43 | $ 0.62 | $ 0.74 |
Income (loss) from discontinued operations (in dollars per share) | 0.63 | (0.35) | 1.13 | 0.07 |
Basic income per share | 0.86 | 0.08 | 1.75 | 0.81 |
Diluted income per common share | ||||
Income from continuing operations (in dollars per share) | 0.22 | 0.43 | 0.62 | 0.74 |
Income from discontinued operations (in dollars per share) | 0.63 | (0.35) | 1.12 | 0.07 |
Diluted income per share | $ 0.85 | $ 0.08 | $ 1.74 | $ 0.81 |
Average number of common shares (thousands) | ||||
Basic (in shares) | 182,347 | 201,893 | 192,286 | 201,647 |
Diluted (in shares) | 183,796 | 202,275 | 193,460 | 202,208 |
Dividends declared per common share | $ 0.15 | $ 0.15 | $ 0.30 | $ 0.30 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Net Income | $ 156.7 | $ 17 | $ 336.6 | $ 163 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustments | 30.7 | (2.7) | 43.5 | 18.5 |
Net unrealized gains on available for sale securities | 4 | 12.1 | 6.7 | 14.7 |
Changes in benefit plans net gain (loss) and prior service (cost)/credit | 0.6 | 0.3 | 1.5 | 1.3 |
Other comprehensive income, net of tax | 35.3 | 9.7 | 51.7 | 34.5 |
Comprehensive income | $ 192 | $ 26.7 | $ 388.3 | $ 197.5 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Preferred Stock [Member] | Common Stock [Member] | Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Noncontrolling Minority Interests [Member] |
Beginning balance at Dec. 31, 2015 | $ 10,945.2 | $ 2 | $ 8,718.1 | $ 2,524 | $ (142.1) | $ (157.3) | $ 0.5 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | 163 | 163 | ||||||
Other comprehensive income, net of tax | 34.5 | 34.5 | ||||||
Dividends paid | (61.5) | (61.5) | ||||||
Amortization of restricted stock, stock option and performance shares expenses | 10.8 | 30.5 | (19.7) | |||||
Issuance of common stock — acquisition | 0.1 | 0.1 | ||||||
Employee stock purchase plan | 1.2 | 1.2 | ||||||
Ending balance at Jun. 30, 2016 | 11,093.3 | $ 0 | 2.1 | 8,749.8 | 2,625.5 | (107.6) | (177) | 0.5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Adoption of Accounting Standard Update 2016-09 | 1 | (1) | ||||||
December 31, 2016 | 10,003.1 | 0 | 2.1 | 8,766.8 | 1,552 | (140.1) | (178.1) | 0.4 |
Beginning balance at Dec. 31, 2016 | 10,003.1 | 0 | 2.1 | 8,765.8 | 1,553 | (140.1) | (178.1) | 0.4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | 336.6 | 336.6 | ||||||
Other comprehensive income, net of tax | 51.7 | 51.7 | ||||||
Dividends paid | (61.7) | (61.7) | ||||||
Issuance of preferred stock | 318 | 325 | (7) | |||||
Share repurchases | (3,306) | (76.8) | (3,229.2) | |||||
Amortization of restricted stock, stock option and performance shares expenses | 8.5 | 27.4 | (18.9) | |||||
Employee stock purchase plan | 1.4 | 1.4 | ||||||
Other | (0.1) | (0.1) | ||||||
Ending balance at Jun. 30, 2017 | $ 7,351.5 | $ 325 | $ 2.1 | $ 8,711.8 | $ 1,826.9 | $ (88.4) | $ (3,426.2) | $ 0.3 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Cash Flows From Operations | |||||
Net income | $ 156.7 | $ 17 | $ 336.6 | $ 163 | |
Adjustments to reconcile net income to net cash flows from operations: | |||||
Provision for credit losses | 54.1 | 127.4 | |||
Net depreciation, amortization and (accretion) | 200.4 | 402.1 | |||
Net gains on asset sales and impairments on assets held for sale and other | (253.6) | (43.4) | |||
Loss on debt extinguishment | 203.8 | 0 | |||
Provision for deferred income taxes | 111 | 87.9 | |||
Decrease in loans held for sale | 80.3 | 244.3 | |||
Goodwill and intangible assets - impairment | 0 | 4.2 | |||
Net (payment) reimbursement of expense from FDIC | (3.8) | 4.4 | |||
Decrease (increase) in other assets | 130.1 | (37) | |||
(Decrease) increase in other liabilities | (636.6) | 42.4 | |||
Net cash flows provided by operations | 222.3 | 995.3 | |||
Cash Flows From Investing Activities | |||||
Changes in loans, net | 758.9 | 94.5 | |||
Purchases of investment securities | (3,339) | (1,855.2) | |||
Proceeds from maturities of investment securities | 2,215.2 | 1,624.1 | |||
Proceeds from asset and receivable sales | 677.4 | 784.4 | |||
Net proceeds from sale of commercial air | 10,004 | 0 | |||
Purchases of assets to be leased and other equipment | (604.2) | (935.8) | |||
Net decrease in short-term factoring receivables | (91.4) | (129.1) | |||
Purchases of restricted stock | (4.8) | 0 | |||
Proceeds from redemption of restricted stock | 8.6 | 2.2 | |||
Payments to the FDIC under loss share agreements | (0.1) | (2.1) | |||
Proceeds from the FDIC under loss share agreements and participation agreements | 43.4 | 59.8 | |||
Proceeds from sale of OREO, net of repurchases | 51.4 | 72.7 | |||
Net change in restricted cash | 600.3 | 26.7 | |||
Net cash flows provided by (used in) investing activities | 10,319.7 | (257.8) | |||
Cash Flows From Financing Activities | |||||
Proceeds from the issuance of term debt | 16.8 | 8.5 | |||
Repayments of term debt and net settlements | (7,387.3) | (915.3) | |||
Proceeds from FHLB advances | 0 | 1,645.5 | |||
Repayments of FHLB advances | (15.4) | (1,768) | |||
Net (decrease) increase in deposits | (1,360.8) | 102.6 | |||
Collection of security deposits and maintenance funds | 63.8 | 168.5 | |||
Use of security deposits and maintenance funds | (34.2) | (58.3) | |||
Repurchase of common stock | (3,306) | 0 | |||
Net proceeds from issuance of preferred stock | 318 | 0 | |||
Dividends paid | (61.7) | (61.5) | |||
Taxes paid through withholding of common stock under employee stock plans | (18.9) | (15.6) | |||
Payments on affordable housing investment credits | (12.1) | (8.1) | |||
Net cash flows used in financing activities | (11,797.8) | (901.7) | |||
Effect of exchange rate changes on cash and cash equivalents | 10 | (2.3) | |||
Decrease in unrestricted cash and cash equivalents | (1,245.8) | (166.5) | |||
Unrestricted cash and cash equivalents, beginning of period | 6,375.2 | 7,470.6 | $ 7,470.6 | ||
Unrestricted cash and cash equivalents, end of period | 5,129.4 | 7,304.1 | 5,129.4 | 7,304.1 | $ 6,375.2 |
Supplementary Cash Flow Disclosure | |||||
Interest paid | (561) | (581.3) | |||
Federal, foreign, state and local income taxes paid, net | (13.8) | (6.4) | |||
Supplementary Non Cash Flow Disclosure | |||||
Transfer of assets from held for investment to held for sale | 1,220 | 1,528.3 | |||
Transfer of assets from held for sale to held for investment | 88.2 | 76.8 | |||
Deposits on flight equipment purchases applied to acquisition of flight equipment purchases, and origination of finance leases, capitalized interest, and buyer furnished equipment | 91.2 | 179.9 | |||
Transfers of assets from held for investment to OREO | 61.6 | 45.3 | |||
Capital lease unexercised bargain purchase options | 17.5 | 7.1 | |||
Unfunded payments on affordable housing investment credits committed during the period | $ 50.1 | $ 0 | $ 50.1 | $ 0 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CIT Group Inc., together with its subsidiaries (collectively “we”, “our”, “CIT” or the “Company”), has provided financial solutions to its clients since 1908. The Company provides financing, leasing and advisory services principally to middle market companies in a wide variety of industries primarily in North America. 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 of the U.S. Department of the Treasury (“OCC”). Effective August 3, 2015, CIT acquired IMB HoldCo LLC ("IMB") and its wholly owned subsidiary, OneWest Bank, National Association ("OneWest Bank") and merged CIT Bank, a Utah state bank, into OneWest Bank (the "OneWest Bank Transaction"). 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, necessary 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, 2016 . 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. Some of the more significant estimates include: allowance for loan losses, loan impairment, fair value determination, lease residual values, liabilities for uncertain tax positions, realizability of deferred tax assets, purchase accounting adjustments, indemnification assets, goodwill, intangible assets, and contingent liabilities, including amounts associated with the discontinued operation. Additionally where applicable, the policies conform to accounting and reporting guidelines prescribed by bank regulatory 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 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 as of June 30, 2017 and December 31, 2016 included certain assets and liabilities of the Financial Freedom business that was acquired as part of the OneWest Transaction and the Business Air business, while December 31, 2016 also included certain assets and liabilities of the Commercial Air business. Income from discontinued operations reflects the activities of the Aerospace (Commercial Air and Business Air) and Financial Freedom businesses for the quarters ended June 30, 2017 and 2016 . We completed the sale of our Commercial Air business in April 2017. See further discussions in Note 2 — Discontinued Operations . Revisions of Previously Issued Statements of Cash Flows The Company has revised the Statement of Cash Flows for the six months ended June 30, 2016 in connection with immaterial errors impacting the classification of certain balances between line items and categories as previously disclosed in its Form 10-K, Note 29 — Selected Quarterly Financial Data , for the year ended December 31, 2016 , in addition to immaterial errors identified during 2017. The misclassifications resulted in an overstatement of net cash flows provided by operations of $ 36.1 million (which included an understatement of the 'increase in other assets' line item of $57.8 million and an understatement of the 'increase in accrued liabilities and payables' line item for the same amount for the prior year errors identified in 2017), an overstatement of net cash flows used in investing activities of $ 48.6 million , and an understatement of net cash flows used in financing activities of $ 5.8 million . The revision also resulted in a negative impact of $6.7 million disclosed as a separate line item within the Statement of Cash Flows reflecting the cumulative effect of exchange rate changes. The Company evaluated the impact of the errors and has concluded that individually and in the aggregate, the errors were not material to any previously issued financial statements. SIGNIFICANT ACCOUNTING POLICIES Significant accounting policies are included with the current Form 10-K for the year ended December 31, 2016 . There were no material changes to these policies during the six months ended June 30, 2017 . Newly Adopted Accounting Standards The following pronouncements were issued by the Financial Accounting Standards Board (“FASB”) a nd adopted by CIT as of January 1, 2017. Refer to Note 1 - Business and Summary of Significant Accounting Policies on Form 10-Q for the quarter ended March 31, 2017 for a detailed description of these pronouncements: • Accounting Standards Update (“ASU”) 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. • ASU 2016-06, Derivatives and Hedging (Top 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 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. • ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments - Equity Method and Joint Ventures (Topic 323). • ASU 2017-04, Intangibles-Goodwill and Other (Topic 350). Recent Accounting Pronouncements The following accounting pronouncements were issued by the FASB but are not yet effective for CIT. Refer to Note 1, Business and Summary of Significant Accounting Policies on Form 10-K for the year ended December 31, 2016 for a detailed description of the pronouncements. Standard Summary of Guidance Effect on CIT's Financial Statements ASU 2014-09, Revenue from Contracts with Customers (Topic 606), and subsequent related ASUs Issued May 2014, with Updates through May 2016 • Establishes the principles to apply in determining the amount and timing of revenue recognition. • The guidance specifies the accounting for certain costs related to revenue, and requires additional disclosures about the nature, amount, timing and uncertainty of revenues and related cash flows. • The core principle is that a company will recognize revenue when it transfers control of goods or services to customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. • May be adopted using a full retrospective approach or a modified, cumulative effect approach. • Effective for CIT as of January 1, 2018. • The review and analysis of CIT’s individual revenue streams is substantially complete. “Interest Income” and “Rental Income on Operating Leases”, CIT’s two largest revenue items, are out of scope for the new guidance; as are many other revenues relating to financial assets and liabilities, including loans, leases, securities and derivatives. As such, the majority of our revenues will not be impacted; however, certain ancillary revenues and components of “Other income” are being assessed at a contractual level pursuant to the new standard. We expect our accounting policies will not change materially. • CIT does not anticipate a significant impact on our financial statements and disclosures upon adoption of the standard. Our evaluations are not final and we continue to assess the impact of the Update on our revenue contracts. • CIT plans to adopt the standard using the modified retrospective method (cumulative initial effect recognized at the date of adoption, with additional footnote disclosures). ASU 2016-02, Leases (Topic 842 Issued February 2016 • Lessees will need to recognize all leases longer than twelve months on the consolidated balance sheets as lease liabilities with corresponding right-of-use assets. 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. • 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. • The ASU requires both quantitative and qualitative disclosures regarding key information about leasing arrangements. 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. Early adoption is permitted. • Effective for CIT as of January 1, 2019. • Although the new guidance does not significantly change lessor accounting, CIT will need to determine the impact where it is both a lessee and a lessor: ◦ Lessor accounting: Given limited changes to Lessor accounting, we do not expect material changes to recognition or measurement. Current lease administration and/or reporting systems and processes will need to be evaluated and updated as required to ensure appropriate lease-type identification and classification. ◦ Lessee accounting: CIT expects to recognize right of-use assets and lease liabilities on the balance sheet. The impact on lessee accounting also includes identification of any embedded leases included in service contracts that CIT has with vendors. • CIT management has assembled a project committee and is currently evaluating the potential impact of this ASU on its financial statements and disclosures. Standard Summary of Guidance Effect on CIT's Financial Statements ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Issued June 2016 • Introduces a forward-looking “expected loss” model (the “Current Expected Credit Losses” (“CECL”) model) to estimate credit losses to cover the full remaining expected life of the portfolio upon adoption, rather than the incurred loss model under current U.S. GAAP, on certain types of financial instruments. • It eliminates existing guidance for purchase credit impaired (“PCI”) loans, and requires recognition of an allowance for expected credit losses on financial assets purchased with more than insignificant credit deterioration since origination. • It amends existing impairment guidance for Available for Sale (“AFS”) securities to incorporate an allowance, which will allow for reversals of impairment losses in the event that the credit of an issuer improves. • In addition, it expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for loan and lease losses (ALLL). • 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). • Effective for CIT as of January 1, 2020. • CIT has begun its implementation efforts by establishing a company-wide, cross-discipline governance structure. As part of the assessment phase, CIT is currently identifying key interpretive issues and potential gaps, and is comparing existing credit loss forecasting models and processes with the new guidance. ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities Issued June 2016 • Includes amendments on recognition, measurement, presentation and disclosure of financial instruments. • Adds a new Topic ( ASC 321, Investments - Equity Securities ) to the FASB Accounting Standards Codification, which provides guidance on accounting for equity investments. • Amendments of this guidance should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. • The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption of the Update. • Effective for CIT as of January 1, 2018. • CIT is currently evaluating the impact of this new guidance on the Consolidated Financial Statements and our implementation efforts include the identification of securities within the scope of the guidance and the related impact to accounting policies, presentation, and disclosures. Standard Summary of Guidance Effect on CIT's Financial Statements ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory Issued October 2016 • Requires that the Company recognize the tax expense from the sale of the asset in the seller's tax jurisdiction when the transfer occurs. Any deferred tax asset that arises in the buyer's jurisdiction would also be recognized at the time of the transfer even though the pre-tax effects of the transaction are eliminated in consolidation. • The modified retrospective approach will be required for transition to the new guidance, with a cumulative-effect adjustment recorded in retained earnings as of the beginning of the period of adoption. • Effective for CIT as of January 1, 2018. • CIT is currently evaluating the impact of this new guidance on the Consolidated Financial Statements. ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments Issued August 2016 • Clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows. The new guidance also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. • Requires retrospective application to all periods presented. • Effective for CIT as of January 1, 2018. • CIT is currently evaluating the potential impact on the Consolidated Financial Statements. ASU 2016-18, Statement of Cash Flows (Topic 230):Restricted Cash Issued November 2016 • Requires that the Statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. • Requires retrospective application to all periods presented. • Effective for CIT as of January 1, 2018. • CIT is currently evaluating the potential impact on the Consolidated Financial Statements. ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business Issued January 2017 • This guidance narrows the definition of a business and provides guidance to assist entities with evaluating when a set of transferred assets and activities is a business. • The standard must be applied prospectively to transactions occurring within the period of adoption. • Effective for CIT as of January 1, 2018. • The Company is currently evaluating the impact of this ASU, but does not expect the adoption of this guidance to have a material impact on its Consolidated Financial Statements. ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) Issued February 2017 • This guidance clarifies the scope of accounting for derecognition or partial sale of nonfinancial assets to exclude all businesses and non-profit activities. • ASU 2017-05 also provides a definition for in substance nonfinancial assets and additional guidance on partial sales of nonfinancial assets. • Effective for CIT as of January 1, 2018. • CIT will adopt this guidance in conjunction with the new revenue recognition guidance on a modified retrospective basis. Standard Summary of Guidance Effect on CIT's Financial Statements ASU 2017-07, Compensation- Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost Issued March 2017 • Requires employers that present a measure of operating income in their statement of income to include only the service cost component of net periodic pension cost and net periodic postretirement benefit cost in operating expenses (together with other employee compensation costs). • The other components of net benefit cost, including amortization of prior service cost/credit, and settlement and curtailment effects, are to be included in non-operating expenses in a separate line item(s). • Employers that do not present a measure of operating income are required to include the service cost component in the same line item as other employee compensation costs. • Stipulates that only the service cost component of net benefit cost is eligible for capitalization. • Early adoption is permitted as of the beginning of an annual period for which financial statements have not yet been issued or made available for issuance. The amendments related to presentation of service cost and other components in the income statements must be applied retrospectively to all periods presented. The amendments related to the capitalization of the service cost component should be applied prospectively, on and after the date of adoption • Effective for CIT as of January 1, 2018. • The Company is currently evaluating the impact of this ASU on its financial statements and disclosures and does not intend to early adopt this standard. ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities Issued March 2017 • This amendment shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. • It does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. • Effective for CIT as of January 1, 2019. • The Company is currently evaluating the impact of this ASU on its financial statements and disclosures and does not intend to early adopt this standard. ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting Issued May 2017 • The amendments in this Update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. • Effective for CIT as of January 1, 2018. • Early adoption is permitted, including adoption in any interim period. • The Company does not expect the adoption of this guidance to have a material impact on its Consolidated Financial Statements. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS Aerospace As discussed in Note 2 — Acquisitions and Discontinued Operations in our Annual Report on Form 10-K for the year ended December 31, 2016 , the activity associated with the Commercial Air and Business Air businesses were included in discontinued operations. The Commercial Air business was sold on April 4, 2017. The following condensed financial information reflects the Business Air business as of June 30, 2017 and a combination of the Commercial Air and Business Air businesses as of December 31, 2016 . Condensed Balance Sheet — Aerospace Discontinued Operations (dollars in millions) June 30, 2017 December 31, 2016 Total cash and deposits $ — $ 759.0 Net Loans 226.7 1,047.7 Operating lease equipment, net 21.0 9,677.6 Goodwill — 126.8 Other assets (1) (2.8 ) 1,161.5 Assets of discontinued operations $ 244.9 $ 12,772.6 Secured borrowings $ — $ 1,204.6 Other liabilities (2) 23.7 1,597.3 Liabilities of discontinued operations $ 23.7 $ 2,801.9 (1) Amount includes Deposits on commercial aerospace equipment of $ 1,013.7 million at December 31, 2016 . (2) Amount includes commercial aerospace maintenance reserves of $ 1,084.9 million and security deposits of $ 167.0 million at December 31, 2016 . As described above, we completed the sale of Commercial Air in April 2017. The purchase price was $10.4 billion , and we recorded a pre-tax gain of $146 million , which is included in the Condensed Statement of Income below for the June 30, 2017 quarter and year to date periods. Operating results for the quarter ended June 30, 2017 were not significant, as the sale occurred at the beginning of the quarter. Condensed Statement of Income — Aerospace Discontinued Operations (dollars in millions) Quarters Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Interest income $ 3.6 $ 15.8 $ 23.8 $ 31.8 Interest expense (1.4 ) (90.9 ) (97.3 ) (182.3 ) Provision for credit losses — (4.8 ) — (14.7 ) Rental income on operating leases 2.0 308.2 308.7 619.5 Other Income — 4.5 13.4 20.5 Depreciation on operating lease equipment (1) — (113.2 ) — (227.1 ) Maintenance and other operating lease expenses — (14.3 ) (4.2 ) (21.6 ) Operating expenses (2) (13.7 ) (23.7 ) (38.6 ) (46.9 ) Loss on debt extinguishment (3) — (1.6 ) (39.0 ) (1.6 ) (Loss) income from discontinued operation before benefit (provision) for income taxes (9.5 ) 80.0 166.8 177.6 Benefit (provision) for income taxes 7.4 15.4 (70.7 ) 7.6 Gain on sale of discontinued operations, net of taxes 107.2 — 119.9 — Income from discontinued operations, net of taxes $ 105.1 $ 95.4 $ 216.0 $ 185.2 (1) Depreciation on operating lease equipment is suspended when an operating lease asset is placed in Assets Held for Sale. (2) Operating expenses for the quarter ended June 30, 2017 , include costs related to the commercial air separation initiative. Operating expense includes salaries and benefits and other operating expenses in the prior quarters. (3) The Company repaid approximately $ 1 billion of secured borrowings in the first quarter of 2017 within discontinued operations and recorded a loss of $ 39 million in relation to the extinguishment of those borrowings. Condensed Statement of Cash Flows — Aerospace Discontinued Operations (dollars in millions) Six Months Ended June 30, 2017 2016 Net cash flows provided by operations $ 31.7 $ 525.7 Net cash flows provided by (used in) investing activities 10,730.2 (296.1 ) Reverse Mortgage Servicing The Financial Freedom business, a division of CIT 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. 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 had established reserves for contingent servicing-related liabilities associated with discontinued operations. During the quarter ended June 30, 2017 , the Company and the FDIC resolved the selling and servicing-related obligations for certain reverse mortgage loans with Fannie Mae. In connection with the settlement, the Company released the FDIC from its indemnification obligation to CIT with respect to the Fannie Mae serviced loans, which reduced the indemnification receivable by $ 77 million. As of June 30, 2017 , the indemnification receivable from the FDIC was $29 million for covered servicing-related obligations related to reverse mortgage loans pursuant to the loss share agreement between CIT Bank and the FDIC related to the acquisition by OneWest Bank from the FDIC of certain assets of IndyMac Federal Bank FSB ("IndyMac") (the "IndyMac Transaction"). See the Company's Report on Form 10-K for the year ended December 31, 2016, Note 5 - Indemnification Assets, for further information. For the quarter ended June 30, 2017, income from Financial Freedom was driven by a net release of the curtailment reserve of $ 111 million, partially offset by an increase of $ 40 million in other servicing-related reserves. In addition, during the current quarter, the Company entered into a settlement of approximately $89 million with the HUD OIG and Department of Justice to resolve servicing related claims, which was within the Company’s existing reserves. Further, the Company recognized a write-down of its servicing operations of $54 million , of which $50 million related to impairment of its mortgage servicing rights, included in Other liabilities below. Condensed Balance Sheet — Financial Freedom Discontinued Operations (dollars in millions) June 30, 2017 December 31, 2016 Total cash and deposits, all of which is restricted $ 11.4 $ 5.8 Net Loans (1) 327.6 374.0 Other assets (2) 47.0 68.3 Assets of discontinued operations $ 386.0 $ 448.1 Secured borrowings (1) $ 321.6 $ 366.4 Other liabilities (3) 262.5 569.4 Liabilities of discontinued operations $ 584.1 $ 935.8 (1) Net loans include $ 320.7 million and $ 365.5 million of securitized balances at June 30, 2017 and December 31, 2016 , respectively, and $ 6.9 million and $ 8.5 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 quarters ended June 30, 2017 and 2016 are presented below. Condensed Statement of Income — Financial Freedom Discontinued Operations (dollars in millions) Quarters Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Interest income (1) $ 2.7 $ 3.0 $ 5.5 $ 6.0 Interest expense (1) (2.4 ) (2.7 ) (4.9 ) (5.7 ) Other income (losses) (2) (42.8 ) 8.7 (35.5 ) 17.5 Operating expenses (3) 59.6 (244.4 ) 36.9 (260.6 ) Income (loss) from discontinued operation before benefit for income taxes 17.1 (235.4 ) 2.0 (242.8 ) (Provision) benefit for income taxes (4) (6.7 ) 69.0 (0.8 ) 71.6 Income (loss) from discontinued operation, net of taxes $ 10.4 $ (166.4 ) $ 1.2 $ (171.2 ) (1) Includes amortization for the premium associated with the HECM loans and related secured borrowings. (2) For the quarter and six months ended June 30, 2017, other income included an impairment charge of approximately $50 million on the mortgage servicing rights. (3) For the quarter and six months ended June 30, 2017 , operating expense is comprised of approximately $ 5 million and $9 million in salaries and benefits, $2 million and $8 million in professional and legal services, and $ 3 million and $4 million for other expenses such as data processing, premises and equipment, and miscellaneous charges. In addition, in the quarter and six months ended June 2017 , operating expenses included a net release of the curtailment reserve of $111 million , partially offset by an increase of $40 million in other servicing-related reserves. For the quarter and six months ended June 30, 2016 , operating expense is comprised of approximately $ 5 million and $6 million in salaries and benefits, $ 6 million and $10 million in professional services and $ 3 million and $6 million for other expenses such as data processing, premises and equipment, legal settlement, and miscellaneous charges. In addition, in the quarter and six months ended June 30, 2016 , operating expenses included a net increase to the servicing-related reserve of approximately $230 million . (4) For the quarter and six months ended June 30, 2017 , the Company's tax rate for discontinued operations was 39% and 42% , respectively. For the quarter and six months ended June 30 2016 , the Company’s tax rate for discontinued operations was 29% . Condensed Statement of Cash Flows — Financial Freedom Discontinued Operations (dollars in millions) Six Months Ended June 30, 2017 2016 Net cash flows used for operations $ (21.4 ) $ (20.6 ) Net cash flows provided by investing activities 48.3 45.8 CIT's Consolidated Statement of Cash Flows for the six months ended June 30, 2017 included $102 million of activity within the decrease in other liabilities related to the Company's net release of servicing-related reserves partially offset by the impairment charge to the servicing liability, and $77 million of activity within the decrease in other assets related to the Company's release of the FDIC from its indemnification obligation to CIT with respect to the Fannie Mae serviced loans. For the six months ended June 30, 2016, there was $230 million of activity within the increase in other liabilities related to the Company’s net increase in servicing-related reserves. Combined Results for Discontinued Operations The following tables reflect the combined results of the discontinued operations. Details of the balances are discussed in prior tables. Condensed Combined Balance Sheet Discontinued Operations (dollars in millions) June 30, 2017 December 31, 2016 Total cash and deposits $ 11.4 $ 764.8 Net Loans 554.3 1,421.7 Operating lease equipment, net 21.0 9,677.6 Goodwill — 126.8 Other assets 44.2 1,229.8 Assets of discontinued operations $ 630.9 $ 13,220.7 Secured borrowings $ 321.6 $ 1,571.0 Other liabilities 286.2 2,166.7 Liabilities of discontinued operations $ 607.8 $ 3,737.7 Condensed Combined Statement of Income Discontinued Operations (dollars in millions) Quarters Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Interest income $ 6.3 $ 18.8 $ 29.2 $ 37.8 Interest expense (3.8 ) (93.6 ) (102.2 ) (188.0 ) Provision for credit losses — (4.8 ) — (14.6 ) Rental income on operating leases 2.0 308.2 308.7 619.5 Other income (losses) (42.8 ) 13.2 (22.1 ) 38.0 Depreciation on operating lease equipment — (113.2 ) — (227.1 ) Maintenance and other operating lease expenses — (14.3 ) (4.2 ) (21.6 ) Operating expenses 45.9 (268.1 ) (1.7 ) (307.6 ) Loss on debt extinguishment — (1.6 ) (39.0 ) (1.6 ) Income (loss) from discontinued operations before benefit (provision) for income taxes 7.6 (155.4 ) 168.7 (65.2 ) Benefit (provision) for income taxes 0.7 84.4 (71.4 ) 79.2 Gain on sale of discontinued operations, net of taxes 107.2 — 119.9 — Income (loss) from discontinued operations, net of taxes $ 115.5 $ (71.0 ) $ 217.2 $ 14.0 Condensed Combined Statement of Cash Flows Discontinued Operations (dollars in millions) Six Months Ended June 30, 2017 2016 Net cash flows used for operations $ 10.3 $ 505.1 Net cash flows provided by (used in) investing activities 10,778.5 (250.3 ) |
Loans
Loans | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
LOANS | LOANS Loans, excluding those reflected as discontinued operations, consist of the following: Loans by Product (dollars in millions) June 30, December 31, Commercial loans $ 19,902.3 $ 20,117.8 Direct financing leases and leveraged leases 2,820.6 2,852.9 Total commercial 22,722.9 22,970.7 Consumer loans 6,308.8 6,565.2 Total loans 29,031.7 29,535.9 Loans held for sale (1) 305.4 635.8 Loans and held for sale loans (1) $ 29,337.1 $ 30,171.7 (1) Loans held for sale includes loans primarily related to portfolios in Commercial Banking and the China portfolio in NSP. As discussed in subsequent tables, since the Company manages the credit risk and collections of loans held for sale consistently with its loans held for investment, the aggregate amount is presented in this table. The following table presents loans, excluding loans held for sale, by segment, based on obligor location: Loans (dollars in millions) June 30, 2017 December 31, 2016 Domestic Foreign Total Domestic Foreign Total Commercial Banking $ 20,398.0 $ 1,943.2 $ 22,341.2 $ 20,440.7 $ 2,121.6 $ 22,562.3 Consumer Banking (1) 6,690.5 — 6,690.5 6,973.6 — 6,973.6 Total $ 27,088.5 $ 1,943.2 $ 29,031.7 $ 27,414.3 $ 2,121.6 $ 29,535.9 (1) The Consumer 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 loans: Components of Net Investment in Loans (dollars in millions) June 30, December 31, Unearned income $ (811.7 ) $ (727.1 ) Unamortized premiums / (discounts) (23.4 ) (31.0 ) Accretable yield on Purchased Credit-Impaired (“PCI”) loans (1,176.0 ) (1,261.4 ) Net unamortized deferred costs and (fees) (1) 60.9 55.8 (1) Balance relates to the Commercial Banking segment. 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 loan 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 following table summarizes commercial loans 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 Loans and Held for Sale Loans — Risk Rating by Class / Segment (dollars in millions) Grade: Pass Special Mention Classified- accruing Classified- non-accrual PCI Loans Total June 30, 2017 Commercial Banking Commercial Finance $ 7,702.0 $ 488.9 $ 1,162.3 $ 166.1 $ 35.6 $ 9,554.9 Real Estate Finance 5,200.7 165.1 166.4 3.6 65.4 5,601.2 Business Capital 6,612.9 303.5 240.1 59.5 — 7,216.0 Rail 88.8 13.8 1.0 — — 103.6 Total Commercial Banking 19,604.4 971.3 1,569.8 229.2 101.0 22,475.7 Consumer Banking Other Consumer Banking 353.5 4.7 21.2 — 2.4 381.8 Total Consumer Banking 353.5 4.7 21.2 — 2.4 381.8 Non- Strategic Portfolios 68.7 26.0 11.8 8.1 — 114.6 Total $ 20,026.6 $ 1,002.0 $ 1,602.8 $ 237.3 $ 103.4 $ 22,972.1 December 31, 2016 Commercial Banking Commercial Finance $ 8,184.7 $ 677.6 $ 1,181.7 $ 188.8 $ 42.7 $ 10,275.5 Real Estate Finance 5,191.4 168.7 115.6 20.4 70.5 5,566.6 Business Capital 6,238.7 422.0 271.7 41.7 — 6,974.1 Rail 88.7 14.1 0.9 — — 103.7 Total Commercial Banking 19,703.5 1,282.4 1,569.9 250.9 113.2 22,919.9 Consumer Banking Other Consumer Banking 374.9 8.3 22.4 — 2.8 408.4 Total Consumer Banking 374.9 8.3 22.4 — 2.8 408.4 Non- Strategic Portfolios 143.7 36.9 19.1 10.3 — 210.0 Total $ 20,222.1 $ 1,327.6 $ 1,611.4 $ 261.2 $ 116.0 $ 23,538.3 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 loans 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. As of June 30, 2017 and December 31, 2016 , the carrying value of the indemnification asset for covered single family residential and reverse mortgage loans totaled $180 million and $233 million , respectively, under the IndyMac Transaction. No indemnification asset was recognized in connection with the First Federal or La Jolla Transaction. The indemnification asset is measured on the same basis of accounting as the covered loans (e.g., as PCI loans under the effective yield method). Covered loans are further discussed in our Form 10-K for the year ended December 31, 2016 , Note 5 — Indemnification Assets . Covered loans are limited to the Consumer Banking, Legacy Consumer Mortgages ("LCM") division. Included in the consumer loan balances as of June 30, 2017 and December 31, 2016 , were loans with terms that permitted negative amortization with an unpaid principal balance of $670 million and $761 million , respectively. The table below summarizes the Consumer loan LTV distribution and the covered loan balances as of June 30, 2017 and December 31, 2016 . Consumer Loan LTV Distribution (dollars in millions) Single Family Residential Reverse Mortgage Covered Loans Non-covered Loans Total Single Family Residential Covered Loans Non-PCI Non-covered Loans Total Reverse Mortgages Total Consumer Loans LTV Range Non-PCI PCI Non-PCI PCI Non-PCI PCI June 30, 2017 Greater than 125% $ 2.3 $ 200.3 $ 9.6 $ — $ 212.2 $ 0.8 $ 10.6 $ 29.8 $ 41.2 $ 253.4 101% – 125% 5.3 356.8 6.3 — 368.4 0.8 14.3 7.3 22.4 390.8 80% – 100% 132.3 601.0 38.6 — 771.9 22.8 35.8 7.6 66.2 838.1 Less than 80% 1,438.0 879.8 1,781.2 7.4 4,106.4 396.8 303.2 11.2 711.2 4,817.6 Not Applicable (1) — — 8.9 — 8.9 — — — — 8.9 Total $ 1,577.9 $ 2,037.9 $ 1,844.6 $ 7.4 $ 5,467.8 $ 421.2 $ 363.9 $ 55.9 $ 841.0 $ 6,308.8 December 31, 2016 Greater than 125% $ 2.2 $ 261.4 $ 12.3 $ — $ 275.9 $ 0.6 $ 8.8 $ 33.8 $ 43.2 $ 319.1 101% – 125% 4.7 443.7 13.6 — 462.0 1.2 12.7 7.9 21.8 483.8 80% – 100% 226.6 588.1 40.5 — 855.2 24.0 42.3 7.5 73.8 929.0 Less than 80% 1,515.6 872.4 1,713.1 9.2 4,110.3 405.4 304.9 9.8 720.1 4,830.4 Not Applicable (1) — — 2.9 — 2.9 — — — — 2.9 Total $ 1,749.1 $ 2,165.6 $ 1,782.4 $ 9.2 $ 5,706.3 $ 431.2 $ 368.7 $ 59.0 $ 858.9 $ 6,565.2 (1) Certain Consumer Loans do not have LTV’s, including the Credit Card portfolio. 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 Loans (dollars in millions) Past Due 30–59 Days Past Due 60–89 Days Past Due 90 Days or Greater Total Past Due Current (1) PCI Loans (2) Total June 30, 2017 Commercial Banking Commercial Finance $ 19.7 $ 11.6 $ 68.7 $ 100.0 $ 9,419.3 $ 35.6 $ 9,554.9 Real Estate Finance — — 3.3 3.3 5,532.5 65.4 5,601.2 Business Capital 95.7 30.3 16.0 142.0 7,074.0 — 7,216.0 Rail 1.0 0.6 0.6 2.2 101.4 — 103.6 Total Commercial Banking 116.4 42.5 88.6 247.5 22,127.2 101.0 22,475.7 Consumer Banking Legacy Consumer Mortgages 20.9 3.8 37.1 61.8 2,392.6 2,101.1 4,555.5 Other Consumer Banking 0.6 — 1.0 1.6 2,187.4 2.4 2,191.4 Total Consumer Banking 21.5 3.8 38.1 63.4 4,580.0 2,103.5 6,746.9 Non-Strategic Portfolios 3.9 3.8 6.7 14.4 100.2 — 114.6 Total $ 141.8 $ 50.1 $ 133.4 $ 325.3 $ 26,807.4 $ 2,204.5 $ 29,337.2 December 31, 2016 Commercial Banking Commercial Finance $ 21.4 $ — $ 17.6 $ 39.0 $ 10,193.8 $ 42.7 $ 10,275.5 Real Estate Finance 0.1 — — 0.1 5,496.0 70.5 5,566.6 Business Capital 143.6 42.4 16.3 202.3 6,771.8 — 6,974.1 Rail 5.9 0.6 2.3 8.8 94.9 — 103.7 Total Commercial Banking 171.0 43.0 36.2 250.2 22,556.5 113.2 22,919.9 Consumer Banking Legacy Consumer Mortgages 22.6 6.1 36.6 65.3 2,563.6 2,233.8 4,862.7 Other Consumer Banking 7.4 4.9 0.6 12.9 2,163.4 2.8 2,179.1 Total Consumer Banking 30.0 11.0 37.2 78.2 4,727.0 2,236.6 7,041.8 Non-Strategic Portfolios 3.0 1.1 7.0 11.1 198.9 — 210.0 Total $ 204.0 $ 55.1 $ 80.4 $ 339.5 $ 27,482.4 $ 2,349.8 $ 30,171.7 (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. 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. Loans on Non-Accrual Status (dollars in millions) (1) June 30, 2017 December 31, 2016 Held for Investment Held for Sale Total Held for Investment Held for Sale Total Commercial Banking Commercial Finance $ 158.1 $ 8.0 $ 166.1 $ 156.7 $ 32.1 $ 188.8 Real Estate Finance 3.6 — 3.6 20.4 — 20.4 Business Capital 59.5 — 59.5 41.7 — 41.7 Total Commercial Banking 221.2 8.0 229.2 218.8 32.1 250.9 Consumer Banking Legacy Consumer Mortgages 18.7 — 18.7 17.3 — 17.3 Other Consumer Banking 0.8 — 0.8 0.1 — 0.1 Total Consumer Banking 19.5 — 19.5 17.4 — 17.4 Non-Strategic Portfolios — 8.1 8.1 — 10.3 10.3 Total $ 240.7 $ 16.1 $ 256.8 $ 236.2 $ 42.4 $ 278.6 Repossessed assets and OREO 78.6 72.7 Total non-performing assets $ 335.4 $ 351.3 Commercial loans past due 90 days or more accruing $ 12.0 $ 7.2 Consumer loans past due 90 days or more accruing 21.0 24.8 Total Accruing loans past due 90 days or more $ 33.0 $ 32.0 (1) Factored receivables within our Business Capital division do not accrue interest and therefore are not considered within non-accrual loan balances, however are considered for credit provisioning purposes. 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) June 30, December 31, PCI $ 172.3 $ 201.7 Non-PCI 117.6 106.3 Loans in process of foreclosure $ 289.9 $ 308.0 OREO $ 65.4 $ 69.9 Impaired Loans The Company’s policy is to review for impairment loans greater than $500,000 that are on non-accrual status, as well as short-term factoring receivables greater than $500,000 when events or circumstances indicate that it is probable that CIT will be unable to collect all amounts due according to the contractual terms of the factoring agreement. Small-ticket loan and lease receivables that have not been modified in a restructuring are included (if appropriate) in the reported non-accrual balances above, but are excluded from the impaired loans 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 loans and the related allowance for loan losses by class, exclusive of loans 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 (3) Recorded Investment Unpaid Principal Balance Related Allowance Quarter Ended June 30, 2017 Quarter Ended June 30, 2016 Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 June 30, 2017 With no related allowance recorded: Commercial Banking Commercial Finance $ 70.5 $ 80.0 $ — $ 67.5 $ 10.0 $ 63.1 $ 11.8 Business Capital 3.5 4.1 — 6.4 8.3 4.5 7.7 Real Estate Finance 0.7 0.7 — 0.7 2.5 0.7 1.7 With an allowance recorded: Commercial Banking Commercial Finance 135.3 135.4 22.6 135.1 132.6 137.7 122.6 Business Capital 18.7 18.7 10.4 23.2 10.4 17.7 10.2 Real Estate Finance 2.9 2.9 0.4 2.9 3.2 7.5 2.1 Total Impaired Loans (1) 231.6 241.8 33.4 235.8 167.0 231.2 156.1 Total Loans Impaired at Acquisition Date (2) 2,204.5 3,210.3 17.7 2,243.3 2,516.9 2,278.8 2,575.2 Total $ 2,436.1 $ 3,452.1 $ 51.1 $ 2,479.1 $ 2,683.9 $ 2,510.0 $ 2,731.3 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment (3) December 31, 2016 With no related allowance recorded: Commercial Banking Commercial Finance $ 54.3 $ 72.2 $ — $ 29.5 Business Capital 0.5 1.8 — 5.1 Real Estate Finance 0.7 0.7 — 1.3 With an allowance recorded: Commercial Banking Commercial Finance 143.0 146.2 25.5 132.1 Business Capital 6.6 6.6 4.2 8.2 Real Estate Finance 16.7 16.8 4.0 5.2 Total Impaired Loans (1) 221.8 244.3 33.7 181.4 Total Loans Impaired at Acquisition Date (2) 2,349.8 3,440.7 13.6 2,504.4 Total $ 2,571.6 $ 3,685.0 $ 47.3 $ 2,685.8 (1) Interest income recorded for the three and six months ended June 30, 2017 while the loans were impaired was $1.0 million of which none was recognized using cash-basis method of accounting. Interest income recorded for the year ended December 31, 2016 while the loans were impaired was $1.6 million of which $0.6 million was interest recognized using cash-basis method of accounting. (2) Details of finance loans that were identified as impaired at the Acquisition Date are presented under Loans Acquired with Deteriorated Credit Quality. (3) Average recorded investment for the quarters and six months ended June 30, 2017 , June 30, 2016 and year ended December 31, 2016 . Loans Acquired with Deteriorated Credit Quality The Company applied 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 (dollars in millions) June 30, 2017 Unpaid Principal Balance Carrying Value Allowance for Loan Losses Commercial Banking Commercial Finance $ 60.1 $ 35.6 $ 1.2 Real Estate Finance 91.1 65.4 6.2 Consumer Banking Other Consumer Banking 3.1 2.4 — Legacy Consumer Mortgages 3,056.0 2,101.1 10.3 $ 3,210.3 $ 2,204.5 $ 17.7 December 31, 2016 Commercial Banking Commercial Finance $ 70.0 $ 42.7 $ 2.4 Real Estate Finance 108.1 70.5 4.9 Consumer Banking Other Consumer Banking 3.7 2.8 — Legacy Consumer Mortgages 3,258.9 2,233.8 6.3 $ 3,440.7 $ 2,349.8 $ 13.6 The following table summarizes the carrying value of 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. June 30, 2017 December 31, 2016 (dollars in millions) Non- criticized Criticized Total Non- criticized Criticized Total Commercial Finance $ 6.1 $ 29.5 $ 35.6 $ 5.4 $ 37.3 $ 42.7 Real Estate Finance 25.8 39.6 65.4 35.6 34.9 70.5 Total $ 31.9 $ 69.1 $ 101.0 $ 41.0 $ 72.2 $ 113.2 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 recognized 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 Date, 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 decreases 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 increases in expected cash flows due to improved credit quality result in reversal 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 for the quarters ended June 30, 2017 and 2016. Change in Accretable Yield (dollars in millions) June 30, 2017 (dollars in millions) Quarter Ended Six months ended Balance, beginning of period $ 1,233.7 $ 1,261.4 Accretion into interest income (53.7 ) (106.3 ) Reclassification from non-accretable difference 0.3 33.7 Disposals and Other (4.3 ) (12.8 ) Balance at June 30, 2017 $ 1,176.0 $ 1,176.0 June 30, 2016 Quarter Ended Six months ended Balance, beginning of period $ 1,281.4 $ 1,299.1 Accretion into interest income (50.5 ) (103.5 ) Reclassification from non-accretable difference 55.8 110.4 Disposals and Other (9.4 ) (28.7 ) Balance at June 30, 2016 $ 1,277.3 $ 1,277.3 Troubled Debt Restructuring The Company periodically modifies the terms of loans in response to borrowers’ difficulties. Modifications that include a financial concession to the borrower are accounted for as troubled debt restructurings (TDRs). See the Company's Annual Report on Form 10-K for the year ended December 31, 2016 for discussion of policies on TDRs. At June 30, 2017 , the loans in trial modification period were $5.6 million under the Home Affordable Modification Program ("HAMP"), $0.3 million under the Second Lien Modification Program ("2MP") and $12.0 million under proprietary programs. Trial modifications with a recorded investment of $17.2 million at June 30, 2017 were accruing loans and $0.7 million were non-accruing loans. At December 31, 2016 , the loans in trial modification period were $36.4 million under HAMP, $0.1 million under 2MP and $3.0 million under proprietary programs. Trial modifications with a recorded investment of $38.1 million at December 31, 2016 were accruing loans and $1.4 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 and those within a trial modification period discussed in the preceding paragraph, at June 30, 2017 and December 31, 2016 was $114.7 million and $82.3 million , of which 46% and 41% , respectively, were on non-accrual. See the preceding paragraph on discussion related to TDRs in trial modification period. Commercial Banking and Consumer Banking receivables accounted for 86% and 14% of the total TDRs, respectively, at June 30, 2017 . Commercial Banking and Consumer Banking receivables accounted for 85.0% and 15.0% of the total TDRs, respectively at December 31, 2016 . There were $7.7 million and $5.4 million as of June 30, 2017 and December 31, 2016 , 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 June 30, 2017 and 2016 were $18.7 million and $6.1 million , and $92.7 million and $19.8 million for the six month periods, respectively. The recorded investment as of June 30, 2017 and 2016 of TDRs that experience a payment default (payment default is one missed payment), during the quarters ended June 30, 2017 and 2016 , and for which the payment default occurred within one year of the modification totaled $64.0 million and $2.0 million , respectively, and $65.6 million and $4.1 million for the six month periods, respectively. The defaults that occurred during the current quarter and year to date related to Commercial Banking and Consumer Banking. The financial impact of the various modification strategies that the Company employs in response to borrower difficulties is described below. While the discussion focuses on the 2017 amounts, the overall nature and impact of modification programs were comparable in the prior year. ▪ The nature of modifications qualifying as TDR’s based upon recorded investment at June 30, 2017 was comprised of payment deferrals for 44% and covenant relief and/or other for 56% . December 31, 2016 TDR recorded investment was comprised of payment deferrals for 12% and covenant relief and/or other for 88% . ▪ Payment deferrals result in lower net present value of cash flows, if not accompanied by additional interest or fees, and increased provision for credit losses to the extent applicable. The financial impact of these modifications is not significant given the moderate length of deferral periods. ▪ Interest rate reductions result in lower amounts of interest being charged to the customer, but are a relatively small part of the Company’s restructuring programs. Additionally, in some instances, modifications improve the Company’s economic return through increased interest rates and fees, but are reported as TDRs due to assessments regarding the borrowers’ ability to independently obtain similar funding in the market and assessments of the relationship between modified rates and terms and comparable market rates and terms. The weighted average change in interest rates for all TDRs occurring during the quarters ended June 30, 2017 and 2016 was not significant. ▪ Debt forgiveness, or the reduction in amount owed by borrower, results in incremental provision for credit losses, in the form of higher charge-offs. While these types of modifications have the greatest individual impact on the allowance, the amounts of principal forgiveness for TDRs occurring during quarters ended June 30, 2017 and 2016 was not significant, as debt forgiveness is a relatively small component of the Company’s modification programs. ▪ The other elements of the Company’s modification programs that are not TDRs, do not have a significant impact on financial results given their relative size, or do not have a direct financial impact, as in the case of covenant changes. Reverse Mortgages Consumer loans within continuing operations include an outstanding balance of $841.0 million and $858.9 million at June 30, 2017 and December 31, 2016 , respectively, related to the reverse mortgage portfolio, of which $746.3 million and $769.6 million at June 30, 2017 and December 31, 2016 , respectively, was uninsured. The uninsured reverse mortgage portfolio consists of approximately 1,600 loans with an average borrowers’ age of 83 years old and an unpaid principal balance of $984.1 million at June 30, 2017 . At December 31, 2016 , the uninsured reverse mortgage portfolio consisted of approximately 1,700 loans with an average borrowers’ age of 83 years old and an unpaid principal balance of $1,027.9 million . The realizable collateral value (the lower of the collectible principal and interest or the estimated value of the home) exceeds the outstanding book balance at June 30, 2017 and December 31, 2016 . As of June 30, 2017 , the Company’s estimated future advances to reverse mortgagors are as follows: Future Advances (dollars in millions) Year Ending: 2017 $ 7.7 2018 11.4 2019 9.5 2020 7.8 2021 6.4 Years 2022 – 2026 17.6 Years 2027 – 2031 5.4 Years 2032 – 2036 1.4 Thereafter 0.3 Total (1),(2) $ 67.5 (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 June 30, 2017 , the Company is responsible for funding up to a remaining $62 million of the total amount. Serviced Loans As a result of the OneWest Transaction, the Company services Home Equity Conversion Mortgages (“HECM”) reverse mortgage loans sold to Agencies (Fannie Mae) and securitized into GNMA HECM mortgage-backed securities (“HMBS”) pools. HECM loans transferred into the HMBS program have not met all the requirements for sale accounting, and therefore, the Company has accounted for these transfers as a financing transaction with the loans remaining on the Company’s statement of financial position and the proceeds received are recorded as a secured borrowing. The pledged loans and secured borrowings are reported in Assets of discontinued operations and Liabilities of discontinued operations, respectively. See Note 2 — Discontinued Operations . In the quarter ended June 30, 2017 , the Company repurchased $27.4 million (unpaid principal balance) of additional HECM loans, of which $21.2 million were classified as AHFS and the remaining $6.2 million were classified as HFI. As of June 30, 2017 , the Company had an outstanding balance of $147.1 million of HECM loans, of which $52.4 million (unpaid principal balance) is classified as AHFS with no remaining purchase discount and $63.7 million is classified as HFI accounted for as PCI loans with an associated remaining purchase discount of $7.9 million . Serviced loans also include $38.9 million that are classified as HFI, which are accounted for under the effective yield method, with no remaining purchase discount. As of December 31, 2016 , the Company had an outstanding balance of $122.2 million of HECM loans, of which $32.8 million (unpaid principal balance) were classified as AHFS with a remaining purchase discount of $0.1 million , $68.1 million were classified as HFI accounted for as PCI loans with an associated remaining purchase discount of $9.1 million . Serviced loans also included $30.4 million that were classified as HFI, accounted for under the effective yield method and have no remaining purchase discount. |
Allowance For Loan Losses
Allowance For Loan Losses | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
ALLOWANCE FOR LOAN LOSSES | 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 Loans (dollars in millions) Commercial Consumer Total Quarter Ended June 30, 2017 Balance - March 31, 2017 $ 424.0 $ 24.6 $ 448.6 Provision for credit losses (0.2 ) 4.6 4.4 Other (1) 1.0 (0.3 ) 0.7 Gross charge-offs (2) (32.3 ) (0.9 ) (33.2 ) Recoveries 5.3 0.2 5.5 Balance - June 30, 2017 $ 397.8 $ 28.2 $ 426.0 Six Months Ended June 30, 2017 Balance - December 31, 2016 $ 408.4 $ 24.2 $ 432.6 Provision for credit losses 49.0 5.1 54.1 Other (1) (5.2 ) (0.3 ) (5.5 ) Gross charge-offs (2) (64.7 ) (1.5 ) (66.2 ) Recoveries 10.3 0.7 11.0 Balance - June 30, 2017 $ 397.8 $ 28.2 $ 426.0 Allowance balance at June 30, 2017 Loans individually evaluated for impairment $ 33.4 $ — $ 33.4 Loans collectively evaluated for impairment 357.0 17.9 374.9 Loans acquired with deteriorated credit quality (3) 7.4 10.3 17.7 Allowance for loan losses $ 397.8 $ 28.2 $ 426.0 Other reserves (1) $ 49.0 $ — $ 49.0 Loans at June 30, 2017 Loans individually evaluated for impairment $ 231.6 $ — $ 231.6 Loans collectively evaluated for impairment 22,008.6 4,587.0 26,595.6 Loans acquired with deteriorated credit quality (3) 101.0 2,103.5 2,204.5 Ending balance $ 22,341.2 $ 6,690.5 $ 29,031.7 Percent of loans to total loans 77.0 % 23.0 % 100 % Allowance for Loan Losses and Recorded Investment in Loans (dollars in millions) Commercial Banking Consumer Banking Total Quarter Ended June 30, 2016 Balance - March 31, 2016 $ 386.0 $ 14.8 $ 400.8 Provision for credit losses 22.2 1.1 23.3 Other (1) 3.5 (0.1 ) 3.4 Gross charge-offs (2) (38.0 ) (0.5 ) (38.5 ) Recoveries 3.3 0.8 4.1 Balance - June 30, 2016 $ 377.0 $ 16.1 $ 393.1 Six Months Ended June 30, 2016 Balance - December 31, 2015 $ 336.8 $ 10.2 $ 347.0 Provision for credit losses 108.6 4.2 112.8 Other (1) (1.6 ) 1.3 (0.3 ) Gross charge-offs (2) (74.1 ) (1.2 ) (75.3 ) Recoveries 7.3 1.6 8.9 Balance - June 30, 2016 $ 377.0 $ 16.1 $ 393.1 Allowance balance at June 30, 2016 Loans individually evaluated for impairment $ 29.4 $ — $ 29.4 Loans collectively evaluated for impairment 345.0 15.4 360.4 Loans acquired with deteriorated credit quality (3) 2.6 0.7 3.3 Allowance for loan losses $ 377.0 $ 16.1 $ 393.1 Other reserves (1) $ 44.7 $ 0.2 $ 44.9 Loans at June 30, 2016 Loans individually evaluated for impairment $ 157.3 $ — $ 157.3 Loans collectively evaluated for impairment 22,691.2 4,767.3 27,458.5 Loans acquired with deteriorated credit quality (3) 125.2 2,352.8 2,478.0 Ending balance $ 22,973.7 $ 7,120.1 $ 30,093.8 Percentage of loans to total loans 76.3 % 23.7 % 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 $16.8 million and $31.6 million for the quarter and six months ended June 30, 2017 , respectively, and $15.0 million and $22.4 million for the quarter and six months ended June 30, 2016 , respectively. The charge-offs related to Commercial Banking for all periods. (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). |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | 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 securities. Equity securities include common stock and warrants, along with restricted stock in the Federal Home Loan Bank (“FHLB”) and FRB. Investment Securities (dollars in millions) June 30, December 31, Available-for-sale securities Debt securities $ 4,765.0 $ 3,674.1 Equity securities 34.5 34.1 Held-to-maturity securities Debt securities (1) 218.6 243.0 Securities carried at fair value with changes recorded in net income Debt securities 255.6 283.5 Non-marketable investments (2) 256.3 256.4 Total investment securities $ 5,530.0 $ 4,491.1 (1) Recorded at amortized cost. (2) Non-marketable investments include restricted stock of the FRB and FHLB carried at cost of $233.4 million at June 30, 2017 and $239.7 million at December 31, 2016 . 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 $22.9 million and $16.7 million at June 30, 2017 and December 31, 2016 , respectively. Realized investment gains totaled $0.8 million and $0.9 million for the quarters ended June 30, 2017 and 2016 , and $2.3 million and $1.5 million for the six months ended June 30, 2017 and 2016 , respectively, and exclude losses from OTTI. In addition, the Company had $4.7 billion and $5.6 billion of interest bearing deposits at banks at June 30, 2017 and December 31, 2016 , 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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 Interest income — investments $ 30.6 $ 19.8 $ 58.4 $ 39.0 Interest income — interest bearing deposits 23.8 8.3 36.3 16.7 Dividends — investments 2.5 3.0 5.8 6.4 Total interest and dividends $ 56.9 $ 31.1 $ 100.5 $ 62.1 The following table presents amortized cost and fair value of securities available for sale (“AFS”) and securities held-to-maturity ("HTM"). Amortized Cost and Fair Value (dollars in millions) June 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Debt securities AFS Mortgage-backed Securities U.S. government agency securities $ 3,124.7 $ 2.3 $ (35.9 ) $ 3,091.1 Non-agency securities 429.0 28.7 (0.8 ) 456.9 U.S. government agency obligations 549.9 — (4.2 ) 545.7 U.S. Treasury Securities 372.3 — (0.3 ) 372.0 Supranational securities 299.3 — — 299.3 Total debt securities AFS 4,775.2 31.0 (41.2 ) 4,765.0 Equity securities AFS 35.4 — (0.9 ) 34.5 Total securities AFS 4,810.6 31.0 (42.1 ) 4,799.5 Debt securities HTM Mortgage-backed securities U.S. government agency securities 95.5 0.5 (2.7 ) 93.3 State and municipal 18.8 — (0.4 ) 18.4 Corporate — foreign 104.3 7.6 — 111.9 Total debt securities HTM 218.6 8.1 (3.1 ) 223.6 Total $ 5,029.2 $ 39.1 $ (45.2 ) $ 5,023.1 December 31, 2016 Debt Securities AFS Mortgage-backed Securities U.S. government agency securities $ 2,073.6 $ 1.6 $ (32.3 ) $ 2,042.9 Non-agency securities 471.7 15.6 (1.8 ) 485.5 U.S. government agency obligations 649.9 — (3.9 ) 646.0 U.S. Treasury Securities 299.9 — (0.4 ) 299.5 Supranational securities 200.2 — — 200.2 Total debt securities AFS 3,695.3 17.2 (38.4 ) 3,674.1 Equity securities AFS 35.0 — (0.9 ) 34.1 Total securities AFS 3,730.3 17.2 (39.3 ) 3,708.2 Debt securities HTM Mortgage-backed securities U.S. government agency securities 110.0 0.7 (3.3 ) 107.4 State and municipal 27.7 — (0.5 ) 27.2 Foreign government 2.4 — — 2.4 Corporate — foreign 102.9 6.2 — 109.1 Total debt securities HTM 243.0 6.9 (3.8 ) 246.1 Total $ 3,973.3 $ 24.1 $ (43.1 ) $ 3,954.3 The following table presents the debt securities AFS and debt securities HTM by contractual maturity dates: Maturities (dollars in millions) June 30, 2017 Amortized Cost Fair Value Weighted Average Yield Debt securities AFS Mortgage-backed securities — U.S. government agency securities After 5 but within 10 years $ 49.2 $ 48.4 1.52 % Due after 10 years 3,075.5 3,042.7 2.36 % Total 3,124.7 3,091.1 2.35 % Mortgage-backed securities — non-agency securities After 5 but within 10 years 21.5 21.5 4.94 % Due after 10 years 407.5 435.4 6.01 % Total 429.0 456.9 5.95 % U.S. government agency obligations After 1 but within 5 years 549.9 545.7 1.22 % Total 549.9 545.7 1.22 % U.S. Treasury Securities Due within 1 year 349.4 349.2 0.88 % After 1 but within 5 years 22.9 22.8 1.01 % Total 372.3 372.0 0.89 % Supranational securities Due within 1 year 299.3 299.3 1.06 % Total 299.3 299.3 1.06 % Total debt securities AFS $ 4,775.2 $ 4,765.0 2.35 % Debt securities HTM Mortgage-backed securities — U.S. government agency securities Due after 10 years $ 95.5 $ 93.3 2.42 % Total 95.5 93.3 2.42 % State and municipal Due within 1 year 0.4 0.4 2.09 % After 1 but within 5 years 0.3 0.3 2.46 % After 5 but within 10 years 0.3 0.3 2.70 % Due after 10 years 17.8 17.4 2.33 % Total 18.8 18.4 2.34 % Corporate — Foreign securities After 1 but within 5 years 104.3 111.9 4.16 % Total 104.3 111.9 4.16 % Total debt securities HTM $ 218.6 $ 223.6 3.24 % The following table summarizes the gross unrealized losses and estimated fair value of AFS securities and HTM securities aggregated by investment category and length of time that the securities have been in a continuous unrealized loss position. Gross Unrealized Loss (dollars in millions) June 30, 2017 Less than 12 months 12 months or greater Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Securities AFS Debt securities AFS Mortgage-backed securities U.S. government agency securities $ 2,379.5 $ (35.4 ) $ 14.1 $ (0.5 ) Non-agency securities 14.1 (0.4 ) 0.5 (0.4 ) U.S. government agency obligations 545.7 (4.2 ) — — U.S. Treasury Securities 222.2 (0.3 ) — — Total debt securities AFS 3,161.5 (40.3 ) 14.6 (0.9 ) Equity securities AFS 34.3 (0.6 ) 0.1 (0.3 ) Total securities available-for-sale 3,195.8 (40.9 ) 14.7 (1.2 ) Debt Securities HTM Mortgage-backed securities U.S. government agency securities 58.6 (1.4 ) 24.3 (1.3 ) State and municipal 0.9 — 14.9 (0.4 ) Total debt securities held-to-maturity 59.5 (1.4 ) 39.2 (1.7 ) Total $ 3,255.3 $ (42.3 ) $ 53.9 $ (2.9 ) December 31, 2016 Less than 12 months 12 months or greater Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Debt securities AFS Mortgage-backed securities U.S. government agency securities $ 1,589.6 $ (31.8 ) $ 13.8 $ (0.5 ) Non-agency securities 56.5 (1.4 ) 15.8 (0.4 ) U.S. government agency obligations 546.1 (3.9 ) — — U.S. Treasury Securities 299.5 (0.4 ) — — Total debt securities AFS 2,491.7 (37.5 ) 29.6 (0.9 ) Equity securities AFS 34.1 (0.9 ) — — Total securities available-for-sale 2,525.8 (38.4 ) 29.6 (0.9 ) Debt securities HTM Mortgage-backed securities U.S. government agency securities 68.2 (1.7 ) 26.7 (1.6 ) State and municipal 3.8 (0.1 ) 22.4 (0.4 ) Total securities held-to-maturity 72.0 (1.8 ) 49.1 (2.0 ) Total $ 2,597.8 $ (40.2 ) $ 78.7 $ (2.9 ) 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, 2016 . Changes in the accretable yield for PCI securities are summarized below for the quarter ended June 30, 2017 and June 30, 2016 : Changes in Accretable Yield (dollars in millions) Quarter Ended Six Months Ended June 30, 2017 Balance, beginning of period $ 158.2 $ 165.0 Accretion into interest income (6.3 ) (12.8 ) Reclassifications from non-accretable difference due to improving cash flows 0.4 0.5 Reclassifications to non-accretable difference due to decreasing cash flows (0.3 ) (0.7 ) Disposals and other 0.1 0.1 Balance at June 30, 2017 $ 152.1 $ 152.1 Quarter Ended Six Months Ended June 30, 2016 Balance, beginning of period $ 185.1 $ 189.0 Accretion into interest income (7.4 ) (15.2 ) Reclassifications from non-accretable difference 1.5 5.4 Balance at June 30, 2016 $ 179.2 $ 179.2 The estimated fair value of PCI securities was $450.5 million and $478.9 million with a par value of $569.6 million and $615.2 million as of June 30, 2017 , and December 31, 2016 , respectively. Securities Carried at Fair Value with Changes Recorded in Net Income (dollars in millions) June 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Mortgage-backed Securities — Non-agency $ 243.0 $ 12.7 $ (0.1 ) $ 255.6 Total securities held at fair value with changes recorded in net income $ 243.0 $ 12.7 $ (0.1 ) $ 255.6 December 31, 2016 Mortgage-backed Securities — Non-agency $ 277.5 $ 6.7 $ (0.7 ) $ 283.5 Total securities held at fair value with changes recorded in net income $ 277.5 $ 6.7 $ (0.7 ) $ 283.5 Securities Carried at Fair Value with Changes Recorded in Net Income — Amortized Cost and Fair Value Maturities (dollars in millions) June 30, 2017 Amortized Cost Fair Value Weighted Average Yield Mortgage-backed securities — non-agency securities After 5 but within 10 years $ 0.3 $ 0.3 41.82 % Due after 10 years 242.7 255.3 4.89 % Total $ 243.0 $ 255.6 4.94 % 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. There was no OTTI credit-related losses recognized for the quarter ended June 30, 2017 and $0.2 million was recognized as permanent write-downs for the quarter ended June 30, 2016 , and $0.1 million and $2.2 million for the six months ended June 30, 2017 and June 30, 2016 , respectively. 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. |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS The following table presents the carrying value of outstanding borrowings. Borrowings (dollars in millions) June 30, 2017 December 31, 2016 CIT Group Inc. Subsidiaries Total Total Senior Unsecured $ 4,545.1 $ — $ 4,545.1 $ 10,599.0 Secured borrowings: Structured financings — 1,680.8 1,680.8 1,925.7 FHLB advances — 2,395.5 2,395.5 2,410.8 Total Borrowings $ 4,545.1 $ 4,076.3 $ 8,621.4 $ 14,935.5 Unsecured Borrowings Revolving Credit Facility The Revolving Credit Facility has a total commitment amount of $750 million and the maturity date of the commitment is January 25, 2019 . The applicable margin charged under the facility is 2.00% for LIBOR Rate loans and 1.00% for Base Rate loans. The Revolving Credit Facility was amended in February 2017 to lower the total commitments from $1.5 billion to $1.4 billion and to further extend the final maturity date of the lenders’ commitments. On April 4, 2017 , upon consummation of the Commercial Air Sale, the total commitment amount under the Revolving Credit Facility was reduced from $1.4 billion to $750 million and the covenant requiring that the Company maintain a minimum $6 billion consolidated net worth was replaced by a covenant requiring that the Company maintain a minimum Tier 1 capital ratio of 9.0% . Also upon the consummation of the Commercial Air Sale, one of the nine domestic operating subsidiaries of the Company was discharged and released as a guarantor under the Revolving Credit Facility. As of June 30, 2017 , the Revolving Credit Facility was unsecured and was guaranteed by eight of the Company’s domestic operating subsidiaries. In addition, the applicable required minimum guarantor asset coverage ratio ranged from 1.0 :1.0 to 1.5 :1.0 and was 1.25 :1.0 at this date. 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. There were no outstanding borrowings at June 30, 2017 and December 31, 2016 . The amount available to draw upon at June 30, 2017 was approximately $640 million , with the remaining amount of approximately $110 million being utilized for issuance of letters of credit to customers. Senior Unsecured Notes The following table presents the principal amounts by maturity date. Senior Unsecured Notes (dollars in millions) Maturity Date Rate (%) Date of Issuance Par Value February 2019 5.500% February 2012 $ 781.0 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 4.900% $ 4,531.0 On April 4, 2017 , CIT gave notice and redeemed on May 4, 2017 , 100% of the aggregate principal amount (approximately $4.84 billion ) of its outstanding (i) $1,725.8 million , 4.250% Senior Unsecured Notes due August 2017 ; (ii) $1,465.0 million , 5.250% Senior Unsecured Notes due March 2018 ; (iii) $695.0 million , 6.625% Series C Unsecured Notes due April 2018 ; and (iv) $955.9 million , 5.000% Senior Unsecured Notes due May 2018 , at an aggregate premium of $98 million . In addition, on April 4, 2017 , CIT commenced an offer to purchase for cash (the “Debt Tender Offer”) up to $950 million in the aggregate of its (i) 5.500% Series C Unsecured Notes due February 2019 ; (the "2019 Notes") (ii) 5.375% Senior Unsecured Notes due May 2020 (the "2020 Notes"); and (iii) 5.000% Senior Unsecured Notes due August 2022 (the “2022 Notes” and, together with the 2019 Notes and the 2020 Notes, the “Notes”). On April 18, 2017 , CIT elected to increase the aggregate maximum principal amount of Notes accepted for purchase in the Tender Offer and a total principal amount of $969 million of our 5.500% Series C Unsecured Notes due 2019 were repurchased for total consideration of $1.04 billion , including a premium of $59 million and accrued interest of $9 million . In addition to the premium payments noted above, included in the loss on debt extinquishments of $164.8 million for the quarter ended June 30, 2017 are transaction costs and acceleration of deferred costs. The Indentures for the senior unsecured notes 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 senior unsecured notes, holders of the senior unsecured notes will have the right to require the Company, as applicable, to repurchase all or a portion of the senior unsecured notes 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, there is an unsecured note outstanding with a 6.0% coupon and a carrying value of $39 million (par value of $51 million ) that matures in 2036 . Secured Borrowings At June 30, 2017 , the Company had pledged assets (including collateral for the FRB discount window) of $13.7 billion , which included $12.2 billion of loans, $1.2 billion of operating lease assets, $0.2 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 the advances are secured by certain Bank assets and bear either a fixed or floating interest rate. The FHLB advances are collateralized by MBS securities and a variety of consumer and commercial loans, including SFR 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. As of June 30, 2017 , the Company had $5.1 billion of financing availability with the FHLB, of which $2.5 billion was unused and available, and $197.4 million was being utilized for issuance of letters of credit related to deposits. FHLB Advances as of June 30, 2017 have a weighted average rate of 1.45% . The following table includes the total outstanding FHLB Advances, and respective pledged assets. FHLB Advances with Pledged Assets Summary (dollars in millions) June 30, 2017 December 31, 2016 FHLB Advances Pledged Assets FHLB Advances Pledged Assets Total $ 2,395.5 $ 6,048.9 $ 2,410.8 $ 6,389.7 Structured Financings Set forth in the following table are amounts primarily related to structured financings of and assets 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 June 30, 2017 had a weighted average rate of 3.58% , which ranged from 0.56% to 5.74% . Structured Financings and Pledged Assets Summary (dollars in millions) June 30, 2017 December 31, 2016 Secured Borrowing Pledged Assets Secured Borrowing Pledged Assets Business Capital $ 830.1 $ 2,704.4 $ 949.8 $ 2,608.0 Rail (1) 812.1 1,294.6 860.1 1,327.5 Commercial Finance — — — 0.2 Subtotal — Commercial Banking 1,642.2 3,999.0 1,809.9 3,935.7 Non-Strategic Portfolios 38.6 38.6 115.8 212.6 Total $ 1,680.8 $ 4,037.6 $ 1,925.7 $ 4,148.3 (1) At June 30, 2017 , the TRS Transactions related borrowings and pledged assets, respectively, of $511.3 million and $827.2 million were included in Commercial Banking. The TRS Transactions are described in Note 7 — Derivative Financial Instruments . Not included in the above table are secured borrowings of discontinued operations of $321.6 million and $1,571.0 million , at June 30, 2017 , and December 31, 2016 , respectively. See Note 2 — Discontinued Operations . 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 June 30, 2017 and December 31, 2016 . Variable Interest Entities (“VIEs”) Described below are the results of the Company’s assessment of its variable interests in order to determine its current status with regards to being the VIE primary beneficiary. 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. Refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 for further discussion. 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, which is a VIE for which CIT is not the primary beneficiary. 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 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 $149.4 million and $160.2 million of HMBS outstanding principal balance at June 30, 2017 and December 31, 2016 , 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 June 30, 2017 and December 31, 2016 . 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. 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 June 30, 2017 December 31, 2016 Securities Partnership Investment Securities Partnership Investment Agency securities $ 3,186.7 $ — $ 2,152.9 $ — Non agency securities — Other servicer 712.3 — 769.0 — Tax credit equity investments — 215.4 — 167.7 Equity investments — 14.0 — 11.4 Total Assets $ 3,899.0 $ 229.4 $ 2,921.9 $ 179.1 Commitments to tax credit investments $ — $ 100.2 $ — $ 62.3 Total Liabilities $ — $ 100.2 $ — $ 62.3 Maximum loss exposure (1) $ 3,899.0 $ 229.4 $ 2,921.9 $ 179.1 (1) 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 | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS As part of managing exposure to interest rate and foreign currency risk, the Company enters into derivative transactions with other financial institutions. The Company also enters into derivative contracts with customers as part of its Commercial Banking business. The Company does not enter into derivative financial instruments for proprietary trading or speculative purposes. 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, 2016 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) June 30, 2017 December 31, 2016 Qualifying Hedges Notional Amount Asset Fair Value Liability Fair Value Notional Amount Asset Fair Value Liability Fair Value Foreign currency forward contracts — net investment hedges $ 952.5 $ — $ (42.8 ) $ 817.9 $ 16.9 $ — Total Qualifying Hedges 952.5 — (42.8 ) 817.9 16.9 — Non-Qualifying Hedges Interest rate swaps (2) 6,335.7 61.6 (31.2 ) 5,309.2 63.0 (50.1 ) Written options 2,732.7 — (0.8 ) 2,626.5 0.1 (1.0 ) Purchased options 2,518.4 0.8 — 2,129.6 1.0 (0.1 ) Foreign currency forward contracts 1,425.3 16.6 (27.5 ) 1,329.8 30.2 (6.0 ) Total Return Swap (TRS) 165.8 — (12.6 ) 587.5 — (11.3 ) Equity Warrants 1.0 0.3 — 1.0 0.2 — Interest Rate Lock Commitments 6.9 0.1 — 20.7 0.1 (0.1 ) Forward Sale Commitments on Agency MBS 9.0 — — 39.0 0.1 — Credit derivatives 265.4 — (0.1 ) 267.6 — (0.2 ) Total Non-qualifying Hedges 13,460.2 79.4 (72.2 ) 12,310.9 94.7 (68.8 ) Total Hedges $ 14,412.7 $ 79.4 $ (115.0 ) $ 13,128.8 $ 111.6 $ (68.8 ) (1) Presented on a gross basis. (2) Fair value balances include accrued interest. TRS Transactions As of December 31, 2016 , CIT was party to two financing facilities between two wholly-owned subsidiaries of CIT, one Canadian (“CFL”) and one Dutch, and Goldman Sachs International (“GSI”), respectively, which were structured as total return swaps (“TRS”). Amounts available for advances (otherwise known as the unused portion) were accounted for as derivatives and recorded at the estimated fair value. On December 7, 2016 , CFL entered into a Fourth Amended and Restated Confirmation (the “Termination Agreement”) with GSI to terminate the Canadian TRS and the facility was terminated on January 17, 2017. The total facility capacity available under the Dutch TRS was $625 million at June 30, 2017 and December 31, 2016 . The utilized portion reflects the borrowing. The aggregate “notional amounts” of the Dutch TRS of $165.8 million at June 30, 2017 , and the TRS Transactions of $587.5 million at December 31, 2016 , represent the aggregate unused portions and constitute derivative financial instruments. These notional amounts were calculated as the maximum facility commitment amount, $625 million , under the Dutch TRS less the actual adjusted qualifying borrowing base outstanding of $459.2 million under the facility at June 30, 2017 , and the maximum aggregate facility commitment amount, $1,062.3 million , under the Canadian TRS and Dutch TRS less the aggregate actual adjusted qualifying borrowing base outstanding of $474.8 million under the facilities at December 31, 2016 . The notional amounts of the derivative will increase as the adjusted qualifying borrowing base decreases due to repayment of the underlying ABS to investors. If CIT funds additional ABS under the Dutch TRS, the aggregate adjusted qualifying borrowing base of the total return swaps will increase and the notional amount of the derivatives will decrease accordingly. Based on the Company’s valuation, a liability of $12.6 million and $11.3 million was recorded at June 30, 2017 , and December 31, 2016 , respectively. The increase in liability of $0.4 million and $1.3 million was recognized as a reduction to Other Income for the quarter and six months ended June 30, 2017 , respectively. The decrease in liability of $8.6 million and $26.8 million was recognized as an increase to Other Income for the quarter and six months ended June 30, 2016 , 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. Derivative transactions are documented under an International Swaps and Derivatives Association (“ISDA”) agreement. Offsetting of Derivative Assets and Liabilities (dollars in millions) (1) 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 (2) Cash Collateral Pledged/ (Received) (2)(3) Net Amount June 30, 2017 Derivative assets $ 79.4 $ — $ 79.4 $ (26.5 ) $ (3.5 ) $ 49.4 Derivative liabilities (115.0 ) — (115.0 ) 26.5 55.6 (32.9 ) December 31, 2016 Derivative assets $ 111.6 $ — $ 111.6 $ (30.9 ) $ (48.7 ) $ 32.0 Derivative liabilities (68.8 ) — (68.8 ) 30.9 5.0 (32.9 ) (1) Due to a change in clearinghouse rules, the Company accounts for swap contracts cleared by the Chicago Mercantile Exchange (“CME”) as “settled-to-market” effective January 201 7. As a result, variation margin payments are characterized as settlement of the derivative exposure and variation margin balances are netted against the corresponding derivative mark-to-market balances. The Company’s swap contracts cleared by LCH Clearnet (“LCH”) continue to be accounted for as “collateralized-to-market” and variation margin balances are characterized as collateral against derivative exposures. At June 30, 2017 , gross amount of recognized assets and liabilities were lower by $4.1 million and $20.4 million , respectively. (2) 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. (3) Collateral pledged or received is included in Other assets or Other liabilities, respectively. The following table presents the impact of derivatives on the statements of income. Derivative Instrument Gains and Losses (dollars in millions) Quarters Ended June 30, Six Months Ended June 30, Derivative Instruments Gain / (Loss) Recognized 2017 2016 2017 2016 Non Qualifying Hedges Interest rate swaps Other income $ 0.5 $ — $ 2.7 $ (2.6 ) Interest rate options Other income 0.1 — 0.2 0.4 Foreign currency forward contracts Other income (20.8 ) 21.6 (27.8 ) (12.3 ) Equity warrants Other income 0.2 — 0.1 (0.3 ) Total Return Swap (TRS) Other income (0.4 ) 8.6 (1.3 ) 26.8 Interest Rate Lock Commitments Other income — 0.1 0.1 0.1 Forward Sale Commitments on Agency MBS Other income (0.2 ) — (0.3 ) — Credit Derivatives Other income — 0.3 — 1.2 Total Non-qualifying Hedges $ (20.6 ) $ 30.6 $ (26.3 ) $ 13.3 Total derivatives-income statement impact $ (20.6 ) $ 30.6 $ (26.3 ) $ 13.3 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 June 30, 2017 Foreign currency forward contracts — net investment hedges $ 6.5 $ — $ 6.5 $ (32.8 ) $ (39.3 ) Total $ 6.5 $ — $ 6.5 $ (32.8 ) $ (39.3 ) Quarter Ended June 30, 2016 Foreign currency forward contracts — net investment hedges $ — $ — $ — $ 5.7 $ 5.7 Total $ — $ — $ — $ 5.7 $ 5.7 Six Months Ended June 30, 2017 Foreign currency forward contracts — net investment hedges $ 13.4 $ — $ 13.4 $ (41.7 ) $ (55.1 ) Total $ 13.4 $ — $ 13.4 $ (41.7 ) $ (55.1 ) Six Months Ended June 30, 2016 Foreign currency forward contracts — net investment hedges $ 1.8 $ — $ 1.8 $ (32.3 ) $ (34.1 ) Total $ 1.8 $ — $ 1.8 $ (32.3 ) $ (34.1 ) |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | 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. Assets and Liabilities Measured at Fair Value on a Recurring Basis (dollars in millions) Total Level 1 Level 2 Level 3 June 30, 2017 Assets Debt Securities AFS $ 4,765.0 $ 349.3 $ 3,958.9 $ 456.8 Securities carried at fair value with changes recorded in net income 255.6 — — 255.6 Equity Securities AFS 34.5 0.2 34.3 — Derivative assets at fair value — non-qualifying hedges (1) 79.4 — 79.3 0.1 Total $ 5,134.5 $ 349.5 $ 4,072.5 $ 712.5 Liabilities Derivative liabilities at fair value — non-qualifying hedges (1) $ (72.2 ) $ — $ (59.5 ) $ (12.7 ) Derivative liabilities at fair value — qualifying hedges (42.8 ) — (42.8 ) — Consideration holdback liability (46.1 ) — — (46.1 ) FDIC True-up Liability (64.3 ) — — (64.3 ) Total $ (225.4 ) $ — $ (102.3 ) $ (123.1 ) December 31, 2016 Assets Debt Securities AFS $ 3,674.1 $ 200.1 $ 2,988.5 $ 485.5 Securities carried at fair value with changes recorded in net income 283.5 — — 283.5 Equity Securities AFS (2) 34.1 0.3 33.8 — Derivative assets at fair value — non-qualifying hedges (1) 94.7 — 94.7 — Derivative assets at fair value — qualifying hedges 16.9 — 16.9 — Total $ 4,103.3 $ 200.4 $ 3,133.9 $ 769.0 Liabilities Derivative liabilities at fair value — non-qualifying hedges (1) $ (68.8 ) $ — $ (57.3 ) $ (11.5 ) Consideration holdback liability (47.2 ) — — (47.2 ) FDIC True-up Liability (61.9 ) — — (61.9 ) Total $ (177.9 ) $ — $ (57.3 ) $ (120.6 ) (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, Level 2 or Level 3 inputs. Debt securities classified as AFS included investments in U.S. federal government agency, U.S. Treasury Notes and supranational securities and were valued using Level 2 inputs, primarily quoted prices for similar securities. U.S. Treasury Bills and 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. 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 share 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 Date 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 share 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 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 million , and currently is $46.1 million . The amount expected to be paid was discounted based on CIT’s cost of funds, which approximates a market rate. This contingent consideration was measured at fair value at the Acquisition Date 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 average 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 June 30, 2017 and December 31, 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 June 30, 2017 Assets Securities — AFS $ 456.8 Discounted cash flow Discount Rate 0.0% – 52.9% 4.8% Prepayment Rate 3.6% – 22.7% 9.0% Default Rate 0.0% – 9.3% 3.6% Loss Severity 0.6% – 76.4% 38.0% Securities carried at fair value with changes recorded in net income 255.6 Discounted cash flow Discount Rate 1.5% – 47.7% 4.9% Prepayment Rate 5.3% – 18.8% 11.9% Default Rate 3.0% – 8.8% 4.6% Loss Severity 13.1% – 43.8% 25.9% Derivative assets — non qualifying 0.1 Internal valuation model Borrower Rate 3.4% – 5.0% 4.1% Total Assets $ 712.5 Liabilities FDIC True-up liability $ (64.3 ) Discounted cash flow Discount Rate 2.5% 2.5% Consideration holdback liability (46.1 ) Discounted cash flow Payment Probability 28.0% – 100% 40.9% Discount Rate 1.2% – 4.2% 1.8% Derivative liabilities — non-qualifying (12.7 ) Market Comparables (1) Total Liabilities $ (123.1 ) December 31, 2016 Assets Securities — AFS $ 485.5 Discounted cash flow Discount Rate 0.0% – 96.4% 5.5% Prepayment Rate 3.2% – 21.2% 8.8% Default Rate 0.0% – 9.0% 3.9% Loss Severity 1.0% – 79.8% 36.3% Securities carried at fair value with changes recorded in net income 283.5 Discounted cash flow Discount Rate 0.0% – 34.6% 5.6% Prepayment Rate 6.1% – 16.2% 11.9% Default Rate 1.9% – 8.1% 4.6% Loss Severity 22.2% – 44.7% 25.8% Total Assets $ 769.0 Liabilities FDIC True-up liability $ (61.9 ) Discounted cash flow Discount Rate 3.2% 3.2% Consideration holdback liability (47.2 ) Discounted cash flow Payment Probability 0% – 100% 40.9% Discount Rate 1.3% – 4.0% 2.1% Derivative liabilities — non-qualifying (11.5 ) Market Comparables (1) Total Liabilities $ (120.6 ) (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 techniques 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, 2016 $ 485.5 $ 283.5 $ 0.6 $ — $ (11.5 ) $ (61.9 ) $ (47.2 ) Included in earnings (2.9 ) 8.0 0.7 0.1 (1.2 ) (2.4 ) 1.1 Included in comprehensive income 14.0 — — — — — — Impairment (0.1 ) — — — — — — Settlements (39.7 ) (35.9 ) — — — — — Balance as of June 30, 2017 $ 456.8 $ 255.6 $ 1.3 $ 0.1 $ (12.7 ) $ (64.3 ) $ (46.1 ) December 31, 2015 $ 567.1 $ 339.7 $ 54.8 $ — $ (55.5 ) $ (56.9 ) $ (60.8 ) Included in earnings (3.1 ) 5.5 5.0 0.2 26.8 (2.8 ) (0.7 ) Included in comprehensive income 12.5 — — — — — — Impairment (2.2 ) — — — — — — Settlements (50.9 ) (32.6 ) (6.6 ) — — — 14.3 Balance as of June 30, 2016 $ 523.4 $ 312.6 $ 53.2 $ 0.2 $ (28.7 ) $ (59.7 ) $ (47.2 ) (1) Valuation of Interest Rate Lock Commitments (2) Valuation of the derivatives related to the TRS Transactions 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 quarters ended June 30, 2017 and 2016 , 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 June 30, 2017 Assets held for sale $ 123.6 $ — $ — $ 123.6 $ (1.9 ) Other real estate owned 17.7 — — 17.7 (1.3 ) Impaired loans 100.7 — — 100.7 (23.5 ) Total $ 242.0 $ — $ — $ 242.0 $ (26.7 ) December 31, 2016 Goodwill $ 51.8 $ — $ — $ 51.8 $ (354.2 ) Assets held for sale 201.6 — — 201.6 (14.7 ) Other real estate owned 22.5 — — 22.5 (3.2 ) Impaired loans 151.9 — — 151.9 (26.8 ) Total $ 427.8 $ — $ — $ 427.8 $ (398.9 ) 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. As there is no liquid secondary market for the 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. Carrying value of assets held for sale with impairment approximates fair value at June 30, 2017 and December 31, 2016 . 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 range of inputs used to estimate cost to sell were 5.3% – 9.4% ; which resulted in a weighted average of 5.7% at June 30, 2017 . Also a significant unobservable input is the appraised value or the sales price and thus is classified as Level 3. As of the reporting date, OREO estimated fair value, including costs to sell, was $18.0 million . Impaired Loans — Impaired finance loans 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 loan, with the estimated value determined using fair value of collateral and other cash flows if the loan is collateralized, the present value of expected future cash flows discounted at the contract’s effective interest rate, or observable market prices. The significant unobservable inputs result in the Level 3 classification. As of the reporting date, the carrying value of impaired loans approximates fair value. 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 Value Level 1 Level 2 Level 3 Total June 30, 2017 Financial Assets Cash and interest bearing deposits $ 5,337.9 $ 5,337.9 $ — $ — $ 5,337.9 Derivative assets at fair value — non-qualifying hedges 79.4 — 79.3 0.1 79.4 Assets held for sale (excluding leases) 170.8 — 7.4 163.8 171.2 Loans (excluding leases) 26,211.1 — 392.2 26,257.0 26,649.2 Investment securities (1) 5,530.0 349.5 4,145.9 1,039.6 5,535.0 Indemnification assets (2) 179.5 — — 136.0 136.0 Other assets subject to fair value disclosure and unsecured counterparty receivables (3) 597.2 — — 597.2 597.2 Financial Liabilities Deposits (4) (30,942.9 ) — — (31,072.7 ) (31,072.7 ) Derivative liabilities at fair value — non-qualifying hedges (72.2 ) — (59.5 ) (12.7 ) (72.2 ) Derivative liabilities at fair value — qualifying hedges (42.8 ) — (42.8 ) — (42.8 ) Borrowings (4) (8,700.5 ) — (7,982.0 ) (1,055.3 ) (9,037.3 ) Credit balances of factoring clients (1,405.3 ) — — (1,405.3 ) (1,405.3 ) Other liabilities subject to fair value disclosure (5) (682.5 ) — — (682.5 ) (682.5 ) December 31, 2016 Financial Assets Cash and interest bearing deposits $ 6,430.6 $ 6,430.6 $ — $ — $ 6,430.6 Derivative assets at fair value — non-qualifying hedges 94.7 — 94.7 — 94.7 Derivative assets at fair value — qualifying hedges 16.9 — 16.9 — 16.9 Assets held for sale (excluding leases) 428.4 — 175.0 264.6 439.6 Loans (excluding leases) 26,683.0 — 390.3 26,456.4 26,846.7 Investment securities (1) 4,491.1 200.4 3,199.6 1,094.2 4,494.2 Indemnification assets (2) 233.4 — — 201.0 201.0 Other assets subject to fair value disclosure and unsecured counterparty receivables (3) 712.2 — — 712.2 712.2 Financial Liabilities Deposits (4) (32,323.2 ) — — (32,490.9 ) (32,490.9 ) Derivative liabilities at fair value — non-qualifying hedges (68.8 ) — (57.3 ) (11.5 ) (68.8 ) Borrowings (4) (15,097.8 ) — (14,457.8 ) (1,104.9 ) (15,562.7 ) Credit balances of factoring clients (1,292.0 ) — — (1,292.0 ) (1,292.0 ) Other liabilities subject to fair value disclosure (5) (1,003.6 ) — — (1,003.6 ) (1,003.6 ) (1) Level 3 estimated fair value at June 30, 2017 , includes debt securities AFS ( $457 million ), securities carried at fair value with changes recorded in net income ( $256 million ), non-marketable investments ( $256 million ), and debt securities HTM ( $71 million ). Level 3 estimated fair value at December 31, 2016 included debt securities AFS ( $485.5 million ), debt securities carried at fair value with changes recorded in net income ( $283.5 million ), non-marketable investments ( $256.4 million ), and debt securities HTM ( $68.8 million ). (2) The indemnification assets included in the above table do not include Agency claims indemnification ( $28.9 million and $108.0 million at June 30, 2017 and December 31, 2016, respectively), 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 June 30, 2017 and December 31, 2016 . 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 7 — 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 Notes 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. U.S. Treasury Bills and 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 valued using Level 2 inputs, primarily quoted prices for similar securities. For debt securities HTM where no market rate was available, Level 3 inputs were utilized. Debt securities HTM are securities that the Company has both the ability and the intent to hold until maturity and are carried at amortized cost and periodically assessed for OTTI, with the cost basis reduced when impairment is deemed to be other-than-temporary. Non-marketable equity investments utilize Level 3 inputs to estimate fair value and are generally recorded under the cost or equity method of accounting and are periodically assessed for OTTI, with the net asset values reduced when impairment is deemed to be other-than-temporary. For investments in limited partnership equity interests, the Company used the net asset value provided by the fund manager as an appropriate measure of fair value. Assets held for sale — Assets held for sale are recorded at the lower of cost or fair value on the balance sheet. Of the assets held for sale above, $7.0 million carrying amount at June 30, 2017 was valued using Level 2 inputs. As there is no liquid secondary market for the 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. Commercial loans are generally valued individually, while small ticket commercial loans are valued on an aggregate portfolio basis. Loans — Within the Loans category, there are several types of loans as follows: ▪ Commercial and Consumer Loans — Of the loan balance above, $392.2 million and $390.3 million at June 30, 2017 and December 31, 2016 , respectively, were valued using Level 2 inputs. As there is no liquid secondary market for the other loans in the Company’s portfolio, the fair value is estimated based on discounted cash flow analyses which use Level 3 inputs at both June 30, 2017 and December 31, 2016 . In addition to the characteristics of the underlying contracts, key inputs to the analysis include interest rates, prepayment rates, and credit spreads. For the commercial loan portfolio, the market based credit spread inputs are derived from instruments with comparable credit risk characteristics obtained from independent third party vendors. As these Level 3 unobservable inputs are specific to individual loans/collateral types, management does not believe that sensitivity analysis of individual inputs is meaningful, but rather that sensitivity is more meaningfully assessed through the evaluation of aggregate carrying values of the loans. The fair value of loans at June 30, 2017 was $26.6 billion which was 101.7% of carrying value. The fair value of loans at December 31, 2016 was $26.8 billion , which was 100.6% of carrying value. ▪ Impaired Loans — The value of impaired loans is estimated using the fair value of collateral (on an orderly liquidation basis) if the loan is collateralized, the present value of expected cash flows utilizing the current market rate for such loan, or observable market price. As these Level 3 unobservable inputs are specific to individual loans/collateral types, management does not believe that sensitivity analysis of individual inputs is meaningful, but rather that sensitivity is more meaningfully assessed through the evaluation of aggregate carrying values of impaired loans relative to contractual amounts owed (unpaid principal balance or “UPB”) from customers. As of June 30, 2017 , the UPB related to impaired loans totaled $241.8 million . Including related allowances, these loans are carried at $198.2 million , or 82.0% of UPB. Of these amounts, $84.8 million and $74.7 million of UPB and carrying value, respectively, relate to loans with no specific allowance. As of December 31, 2016 the UPB related to impaired loans including loans for which the Company was applying the income recognition and disclosure guidance in ASC 310-30 (Loans and Debt Securities Acquired with Deteriorated Credit Quality), totaled $244.3 million . Including related allowances, these loans were carried at $188.2 million , or 77.0% of UPB. Of these amounts, $74.7 million and $55.5 million of UPB and carrying value, respectively, relate to loans with no specific allowance. The difference between UPB and carrying value reflects cumulative charge-offs on accounts remaining in process of collection, FSA discounts and allowances. See Note 3 — Loans for more information. ▪ PCI loans — These loans are valued by grouping the loans into performing and non-performing groups and stratifying the loans based on common risk characteristics such as product type, FICO score and other economic attributes. Due to a lack of observable market data, the estimated fair value of these loan portfolios was based on an internal model using unobservable inputs, including discount rates, prepayment rates, delinquency roll-rates, and loss severities. Due to the significance of the unobservable inputs, these instruments are classified as Level 3. ▪ Jumbo Mortgage Loans — The estimated fair value was determi |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY A roll forward of common stock is presented in the following table. Number of Shares of Common Stock Issued Less Outstanding Common Stock – December 31, 2016 206,182,213 (4,094,541 ) 202,087,672 Restricted stock issued 1,127,202 – 1,127,202 Repurchase of common stock – (67,363,405 ) (67,363,405 ) Shares held to cover taxes on vesting restricted shares and other – (460,148 ) (460,148 ) Employee stock purchase plan participation 27,274 – 27,274 Common Stock – June 30, 2017 207,336,689 (71,918,094 ) 135,418,595 During the quarter, we repurchased a total of $3.3 billion in common shares via: • an equity tender offer, in which we repurchased approximately 57.3 million common shares at a purchase price of $48 per share; • open market repurchases of 818,071 common shares at an average share price of $46.45 ; and • an accelerated share repurchase program (ASR), in which CIT paid to the dealer $512 million in exchange for the initial delivery of approximately 9.25 million common shares. The total share delivery is subject to a true-up upon the final settlement of the ASR, which is expected to occur by the end of the third quarter of 2017 . 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) June 30, 2017 December 31, 2016 Gross Unrealized Income Taxes Net Unrealized Gross Unrealized Income Taxes Net Unrealized Foreign currency translation adjustments $ (2.2 ) $ (15.7 ) $ (17.9 ) $ (28.6 ) $ (32.8 ) $ (61.4 ) Changes in benefit plan net gain (loss) and prior service (cost)/credit (68.5 ) 4.7 (63.8 ) (70.6 ) 5.3 (65.3 ) Unrealized net gains on available for sale securities (11.1 ) 4.4 (6.7 ) (22.0 ) 8.6 (13.4 ) Total accumulated other comprehensive loss $ (81.8 ) $ (6.6 ) $ (88.4 ) $ (121.2 ) $ (18.9 ) $ (140.1 ) 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, 2016 $ (61.4 ) $ (65.3 ) $ (13.4 ) $ (140.1 ) AOCI activity before reclassifications 17.3 0.9 6.9 25.1 Amounts reclassified from AOCI 26.2 0.6 (0.2 ) 26.6 Net current period AOCI 43.5 1.5 6.7 51.7 Balance as of June 30, 2017 $ (17.9 ) $ (63.8 ) $ (6.7 ) $ (88.4 ) Balance as of December 31, 2015 $ (65.7 ) $ (69.3 ) $ (7.1 ) $ (142.1 ) AOCI activity before reclassifications 13.9 (0.2 ) 14.7 28.4 Amounts reclassified from AOCI 4.7 1.4 — 6.1 Net current period AOCI 18.6 1.2 14.7 34.5 Balance as of June 30, 2016 $ (47.1 ) $ (68.1 ) $ 7.6 $ (107.6 ) 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 were $16.7 million and insignificant for the quarters ended June 30, 2017 and 2016 , and $26.2 million and $4.7 million for the six months ended June 30, 2017 and 2016 , respectively. $16.7 million of the reclassification from AOCI during the second quarter of 2017 was a result of the sale of the Commercial Air business and is recorded in gain on sale of discontinued operations. The change in income taxes associated with foreign currency translation adjustments was $12.7 million and $(0.9) million for the quarters ended June 30, 2017 and 2016 , and $17.1 million and $14.7 million for the six months ended June 30, 2017 and 2016 , respectively. The changes in benefit plans net gain/(loss) and prior service (cost)/credit reclassification adjustments impacting net income were $0.6 million for the three and six months ended June 30, 2017 and $0.4 million and $1.4 million for the three and six months ended and June 30, 2016 , respectively. The change in income taxes associated with changes in benefit plans net gain/(loss) and prior service (cost)/credit was insignificant for the quarters ended June 30, 2017 and 2016 , and was $(0.6) million and insignificant for the year to date periods ended June 30, 2017 and June 30, 2016 , respectively. Reclassification adjustments impacting net income for unrealized gains (losses) on available for sale securities was $(0.2) million for the three and six months ended June 30, 2017 . There were no reclassification adjustments impacting net income in the prior year periods. The change in income taxes associated with net unrealized gains on available for sale securities was $(2.6) million and $(7.4) million for quarters ended June 30, 2017 and 2016 , respectively and was $(4.2) million and $(9.0) million for the six months ended June 30, 2017 and 2016 , respectively. The Company has operations primarily in North America. 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 June 30, 2017 2016 Gross Amount Tax Net Amount Gross Amount Tax Net Amount Income Statement line item Foreign currency translation adjustments losses $ 16.0 $ 0.7 $ 16.7 $ — $ — $ — Gain on sale, discontinued operations Changes in benefit plan net gain/(loss) and prior service (cost)/credit gains (losses) 0.6 — 0.6 0.5 (0.1 ) 0.4 Operating Expenses Unrealized net gains on available for sale securities (0.2 ) — (0.2 ) — — — Other Income Total Reclassifications out of AOCI $ 16.4 $ 0.7 $ 17.1 $ 0.5 $ (0.1 ) $ 0.4 Six Months Ended June 30, 2017 2016 Gross Amount Tax Net Amount Gross Amount Tax Net Amount Income Statement line item Foreign currency translation adjustments losses (1) $ 24.1 $ 2.1 $ 26.2 $ 3.6 $ 1.1 $ 4.7 Other Income Changes in benefit plan net gain/(loss) and prior service (cost)/credit gains (losses) 0.6 — 0.6 1.6 (0.2 ) 1.4 Operating Expenses Unrealized net gains on available for sale securities (0.2 ) — (0.2 ) — — — Other Income Total Reclassifications out of AOCI $ 24.5 $ 2.1 $ 26.6 $ 5.2 $ 0.9 $ 6.1 (1) $16.7 million of the reclassification from AOCI during the second quarter of 2017 was a result of the sale of the Commercial Air business and is recorded in gain on sale of discontinued operations. |
Regulatory Capital
Regulatory Capital | 6 Months Ended |
Jun. 30, 2017 | |
Regulatory Capital Requirements [Abstract] | |
REGULATORY CAPITAL | 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. In July 2013 the FRB, OCC and Federal Deposit Insurance Corporation issued a final rule (the “Basel III Final Rule”) establishing risk-based capital guidelines. 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 June 30, 2017 and December 31, 2016 , 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 June 30, 2017 . The following table summarizes the actual and minimum required capital ratios: Capital Components and Ratios (dollars in millions, except ratios) CIT CIT Bank, N.A. June 30, December 31, June 30, December 31, Common Equity Tier 1 Capital $ 6,319.5 $ 9,058.9 $ 4,804.8 $ 4,623.2 Tier 1 Capital $ 6,622.1 $ 9,058.9 $ 4,804.8 $ 4,623.2 Total Capital $ 7,097.0 $ 9,535.2 $ 5,228.8 $ 5,053.4 Risk-Weighted Assets (1) $ 43,392.7 $ 64,586.3 $ 33,904.7 $ 34,410.3 Capital Ratios: Common Equity Tier 1 Capital Ratio: Actual 14.6 % 14.0 % 14.2 % 13.4 % Effective minimum ratios under Basel III guidelines (2) 5.750 % 5.125 % 5.750 % 5.125 % Tier 1 Capital Ratio: Actual 15.3 % 14.0 % 14.2 % 13.4 % Effective minimum ratios under Basel III guidelines (2) 7.250 % 6.625 % 7.250 % 6.625 % Total Capital Ratio: Actual 16.4 % 14.8 % 15.4 % 14.7 % Effective minimum ratios under Basel III guidelines (2) 9.250 % 8.625 % 9.250 % 8.625 % Tier 1 Leverage Ratio: Actual 12.1 % 13.9 % 10.5 % 10.9 % Required minimum ratio for capital adequacy purposes 4.0 % 4.0 % 4.0 % 4.0 % (1) The decrease in CIT's Risk-Weighted Assets from December 31, 2016 to June 30, 2017 , reflects the sale of the Commercial Air business. (2) Required ratios under Basel III Final Rule in effect as of the reporting date including the partially phased-in capital conservation buffer. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s global effective income tax rate from continuing operations including discrete tax items for the second quarter and the six months ended June 30, 2017 was (343)% and 17% , respectively, down from 56% in the year-ago quarter and 51% in the year-ago six months period. The decrease in the global effective tax rate is primarily driven by discrete items that occurred in the current quarter. The effective tax rate in the year-ago quarter and six months period was meaningfully above the U.S. federal statutory tax rate due to the impact of certain unfavorable tax adjustments, including certain international income that was subject to incremental tax in the U.S. Included in the net discrete tax benefit of $ 93.4 million and $ 82.1 million for the current quarter and year to date was: • $19.3 million net current tax benefit, including interest and penalties, recognized for the resolution of an uncertain tax position taken on certain prior year income tax returns and certain refunds expected of previously paid taxes, all related to legacy OneWest Bank matters, • $65.2 million deferred tax benefit on the debt extinguishment costs, • $6.9 million deferred tax benefit related to the recognition of a deferred tax asset related to the Company’s investment in Nacco, which is now categorized as “held for sale.” • $13.9 million in deferred tax expense recorded in the prior quarter related to the restructuring of legal entities in preparation for the Commercial Air sale, and • $4.6 million of miscellaneous other year to date net tax benefit items. Included in the $ 7.4 million of net discrete tax benefit for the year-ago six months period was a $13.9 million tax benefit, including interest and penalties, recorded in the prior year first quarter resulting from favorable resolution of a tax position on an international portfolio previously sold, which was partially offset by $ 6.5 million of other miscellaneous net tax expense items, of which $3.6 million was recorded in the year-ago quarter. 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 near term future periods effective tax rate may vary from the actual year-end 2017 effective tax rate due to the changes in these factors. The Company maintained a valuation allowance of $ 35 million against certain non-U.S. reporting entities’ net DTAs and $ 240 million against U.S. state DTAs on certain NOLs as of June 30, 2017 . 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. Liabilities for Uncertain Tax Positions The Company’s liability for uncertain tax positions before interest and penalties totaled $ 15.1 million at June 30, 2017 and $ 36.4 million at December 31, 2016 . The Company anticipates changes to its uncertain tax positions from the resolution of open tax matters and closure of statutes of limitations. The majority of the net reduction related to a $ 15.7 million decrease recorded in the second quarter from favorable tax actions taken by the tax authorities related to positions taken on certain prior year U.S. state income tax returns. Approximately $ 4.9 million of the total $ 21.3 million net reduction resided in entities that were included in the Commercial Air sale. Management estimates that the total potential liability before interest and penalties may be reduced by up to $ 5 million within the next twelve months. The Company’s accrued liability for interest and penalties totaled $ 8.0 million at June 30, 2017 and $ 11.7 million at December 31, 2016 . The change in balance is mainly related to interest and penalties associated with the above mentioned uncertain tax position taken on certain prior-year U.S. state income tax returns and uncertain tax positions related to entities included in Commercial Air sale. The Company recognizes accrued interest and penalties on unrecognized tax benefits in income tax expense. |
Commitments
Commitments | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | COMMITMENTS The accompanying table summarizes credit-related commitments, as well as purchase and funding commitments: Commitments (dollars in millions) June 30, 2017 Due to Expire December 31, Within One Year After One Year Total Outstanding Total Outstanding Financing Commitments Financing assets $ 1,793.8 $ 4,811.8 $ 6,605.6 $ 6,008.1 Letters of credit Standby letters of credit 55.1 191.0 246.1 232.2 Other letters of credit 26.7 — 26.7 14.0 Guarantees Deferred purchase agreements 1,494.1 — 1,494.1 2,060.5 Guarantees, acceptances and other recourse obligations 1.1 — 1.1 1.6 Purchase and Funding Commitments Aerospace purchase commitments (1) — — — 8,683.5 Rail and other purchase commitments 236.1 33.2 269.3 300.7 (1) The Aerospace purchase commitments in the table above are associated with Aerospace discontinued operations which has been sold in April 2017. Discontinued Operations Financing commitments include HECM reverse mortgage loan commitments associated with Financial Freedom discontinued operations of $38 million at June 30, 2017 and $42 million at December 31, 2016 . 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 $1.3 billion at June 30, 2017 and $572 million at December 31, 2016 . Financing commitments also include credit line agreements to Business Capital 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 $435 million at June 30, 2017 and $335 million at December 31, 2016 . 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 June 30, 2017 and $1.7 billion at December 31, 2016 for instances where the customer is not in compliance with contractual obligations or does not have adequate collateral to borrow against the unused facility, and therefore CIT does not have the contractual obligation to lend. At June 30, 2017 , 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 Business Capital to its clients for working capital purposes. In connection with these facilities, Business Capital 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 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 $62 million at June 30, 2017 and $55 million at December 31, 2016 . See Note 5 — Indemnification Assets of the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 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 $1,398 million and $1,962 million of DPA credit protection at June 30, 2017 and December 31, 2016 , 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 $96 million and $99 million available under DPA credit line agreements, net of the amount of DPA credit protection provided at June 30, 2017 and December 31, 2016 , 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 loans, 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 $9.5 million and $6.1 million at June 30, 2017 and December 31, 2016 , respectively. Purchase and Funding Commitments CIT’s purchase commitments relate primarily to purchases of rail equipment. The Company’s rail business entered into commitments to purchase railcars from multiple manufacturers. At June 30, 2017 , approximately 2,200 railcars remain to be purchased from manufacturers with deliveries through 2018 . Rail equipment purchase commitments are at fixed prices subject to price increases for certain materials. Other 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 were $100 million at June 30, 2017 and $62 million at December 31, 2016 . These commitments are payable on demand and are recorded in Other liabilities. In addition, as servicer of HECM loans, the Company is required to purchase loans out of the GNMA HMBS securitization pools once the outstanding principal balance is equal to or greater than 98% of the maximum claim amount. Refer to Note 3 — Loans for further detail regarding the purchased HECM loans due to this servicer obligation. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Loss Contingency [Abstract] | |
CONTINGENCIES | CONTINGENCIES Litigation and other Contingencies 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 and other matters where losses are reasonably possible, management currently estimates the aggregate range of reasonably possible losses as up to $95 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 June 30, 2017 . 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 significant 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 Imposto Sobre Circulaco de Mercadorias e Servicos (“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 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 to secure the indemnity obligation for the ICMS Tax Appeals. Brazilian Indemnification Claims In connection with the 2015 sale of CIT’s Equipment Finance business in Brazil, CIT has received notice from the purchaser regarding indemnification claims for losses incurred in connection with employment lawsuits filed by former employees related to the period prior to the closing of the sale. The demands of the former employees include, among other things, payment of compensation for overtime work, equal pay for performing the same work as others at a lower salary, salary differences for failing to include requisite payments in plaintiffs' salaries; and treatment of certain plaintiffs as an employee instead of an independent contractor. Thirty ( 30 ) labor lawsuits have been filed and as many as thirty-five ( 35 ) current employees and ten ( 10 ) former employees can still file similar lawsuits for which the purchaser may seek indemnification from CIT. Additional lawsuits asserting similar claims may also be brought by independent contractors claiming to be employees. Under Brazilian law, an employee/independent contractor can recover damages for employment-related claims for the five ( 5 ) year period preceding the filing of a lawsuit thus the effective statute of limitations for damages potentially compensable by CIT does not expire until November 2020 , five years after the transaction closed. 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. 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 requested 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. On May 16, 2017 CIT entered into a settlement of approximately $89 million to resolve the servicing related claims. The settlement was within CIT’s existing reserves and includes interest to be reimbursed to HUD. CIT has provided information and documents responsive to the subpoena’s request for information relating to the mortgage originations and does not currently expect the outcome of the remaining loan origination matter to have a material adverse effect on CIT’s financial condition or results of operations. NY Attorney General In the second quarter of 2017, the Office of the Attorney General of the State of New York (“NYAG”), served a subpoena on the Company regarding HECM loans. The subpoena requests documents and other information related to Financial Freedom’s HECM loan business in the State of New York. The Company is in the process of responding to the subpoena and does not have sufficient information to make an assessment of the outcome or the impact of the NYAG subpoena. Ocwen 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 for claims noticed by February 28, 2017 to CIT. 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 June 30, 2017, the cumulative indemnification obligation totaled approximately $56 million, which reduced the Company’s $150 million maximum potential indemnity obligation to Ocwen. On August 12, 2016, Ocwen filed a Demand for Arbitration against CIT alleging that CIT failed to meet its contractual obligations to indemnify Ocwen for losses allegedly suffered in connection with the sale. Among other things, Ocwen alleges that CIT failed to perform its obligations under the sale agreement and breached its representations and warranties in the agreement. 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 reserves. Mortgage Servicing Consent Orders As a result of CIT Group Inc.’s acquisition of OneWest Bank, CIT (as successor to IMB Holdco LLC) is subject to a Consent Order with the FRB related to residential mortgage servicing operations. The original consent order was entered into with IMB Holdco LLC and the Office of Thrift Supervision in April 2011. Following IMB Holdco’s conversion to a bank holding company the Consent Order was amended in March 2014 to name the FRB as the appropriate regulator to administer the Order. A similar Consent Order had been entered into with the OCC, but in July 2015, immediately prior to completion of CIT’s acquisition of OneWest Bank the OCC terminated its Consent Order. However, the FRB continued its Consent Order in place and oversight was transferred to the Federal Reserve Bank New York and CIT succeeded to the Consent Order obligations. The FRB’s Consent Order remains outstanding although improvements required by the Consent Order have been implemented including the completion of an Independent Foreclosure Review in 2014, resulting in approximately $12.7 million of remediation payments being made payable to borrowers. |
Certain Relationships and Relat
Certain Relationships and Related Transactions | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS During the third quarter of 2015, Strategic Credit Partners Holdings LLC (the “JV”), a joint venture between 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. The JV may participate in corporate loans originated by CIT or other third party lenders. 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 June 30, 2017 , loans of $235.0 million were sold to the joint venture. CIT maintains an equity interest of 10% in the JV, and our investment was $7.4 million and $5.4 million at June 30, 2017 and December 31, 2016 , respectively. 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 $266 million and $220 million at June 30, 2017 and December 31, 2016 , respectively, of investments in non-consolidated entities 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. |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION Segment Profit and Assets The following table presents segment data related to continuing operations. Refer to Note 25 — Business Segment Information in our Annual Report on Form 10-K for the year ended December 31, 2016 for further detailed information. Segment Pre-tax Income (Loss) (dollars in millions) Commercial Banking Consumer Banking Non-Strategic Portfolios Corporate and Other Total CIT Quarter Ended June 30, 2017 Interest income $ 316.6 $ 101.6 $ 6.2 $ 53.8 $ 478.2 Interest (expense) benefit (127.8 ) 9.6 (5.0 ) (86.0 ) (209.2 ) Provision for credit losses 0.2 (4.6 ) — — (4.4 ) Rental income on operating leases 251.2 — — — 251.2 Other non-interest income 74.8 5.7 0.2 3.9 84.6 Depreciation on operating lease equipment (77.4 ) — — — (77.4 ) Maintenance and other operating lease expenses (53.3 ) — — — (53.3 ) Operating expenses / loss on debt extinguishment and deposit redemption (176.5 ) (96.2 ) (1.8 ) (185.9 ) (460.4 ) Income (loss) from continuing operations before (provision) benefit for income taxes $ 207.8 $ 16.1 $ (0.4 ) $ (214.2 ) $ 9.3 Quarter Ended June 30, 2016 Interest income $ 323.4 $ 103.5 $ 23.2 $ 28.6 $ 478.7 Interest expense (130.3 ) (4.8 ) (13.8 ) (42.7 ) (191.6 ) Provision for credit losses (22.2 ) (1.1 ) — — (23.3 ) Rental income on operating leases 257.0 — 4.0 — 261.0 Other non-interest income 68.0 11.7 6.7 13.4 99.8 Depreciation on operating lease equipment (63.1 ) — — — (63.1 ) Maintenance and other operating lease expenses (50.6 ) — — — (50.6 ) Operating expenses / loss on debt extinguishment (188.0 ) (86.0 ) (12.0 ) (25.7 ) (311.7 ) Income (loss) from continuing operations before (provision) benefit for income taxes $ 194.2 $ 23.3 $ 8.1 $ (26.4 ) $ 199.2 Segment Pre-tax Income (Loss) continued (dollars in millions) Commercial Banking Consumer Banking Non-Strategic Portfolios Corporate and Other Total CIT Six Months Ended June 30, 2017 Interest income $ 624.1 $ 201.6 $ 13.2 $ 95.0 $ 933.9 Interest (expense) benefit (247.6 ) 16.1 (10.0 ) (130.8 ) (372.3 ) Provision for credit losses (49.0 ) (5.1 ) — — (54.1 ) Rental income on operating leases 502.5 — — — 502.5 Other non-interest income 147.1 13.6 (2.7 ) 5.7 163.7 Depreciation on operating lease equipment (150.9 ) — — — (150.9 ) Maintenance and other operating lease expenses (107.1 ) — — — (107.1 ) Operating expenses / loss on debt extinguishment and deposit redemption (355.2 ) (191.8 ) (3.8 ) (221.2 ) (772.0 ) Income (loss) from continuing operations before (provision) benefit for income taxes $ 363.9 $ 34.4 $ (3.3 ) $ (251.3 ) $ 143.7 Select Period End Balances Loans $ 22,341.2 $ 6,690.5 $ — $ — $ 29,031.7 Credit balances of factoring clients 1,405.3 — — — 1,405.3 Assets held for sale 1,153.8 56.4 114.6 — 1,324.8 Operating lease equipment, net 6,736.0 — — — 6,736.0 Six Months Ended June 30, 2016 Interest income $ 647.3 $ 208.8 $ 48.2 $ 57.3 $ 961.6 Interest expense (260.4 ) (12.8 ) (28.3 ) (85.1 ) (386.6 ) Provision for credit losses (108.6 ) (4.2 ) — — (112.8 ) Rental income on operating leases 517.3 — 7.8 — 525.1 Other non-interest income 126.0 19.9 21.2 17.5 184.6 Depreciation on operating lease equipment (124.4 ) — — — (124.4 ) Maintenance and other operating lease expenses (99.5 ) — — — (99.5 ) Operating expenses / loss on debt extinguishment (385.4 ) (171.1 ) (24.2 ) (62.7 ) (643.4 ) Income (loss) from continuing operations before (provision) benefit for income taxes $ 312.3 $ 40.6 $ 24.7 $ (73.0 ) $ 304.6 Select Period End Balances Loans $ 22,973.7 $ 7,120.1 $ — $ — $ 30,093.8 Credit balances of factoring clients 1,215.2 — — — 1,215.2 Assets held for sale 508.2 37.8 1,093.1 — 1,639.1 Operating lease equipment, net 7,179.1 — — — 7,179.1 |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL The following table summarizes the goodwill balance by segment: Goodwill (dollars in millions) Commercial Banking Consumer Banking Total December 31, 2016 $ 642.2 $ 43.2 $ 685.4 Transfers to Held for Sale (65.1 ) — (65.1 ) Foreign exchange translation 5.2 — 5.2 June 30, 2017 $ 582.3 $ 43.2 $ 625.5 During the second quarter of 2017 , we announced that we reached a definitive agreement to sell Nacco, and therefore transferred the portfolio to held for sale. As a result, approximately $65 million of goodwill within Commercial Banking, including foreign exchange translation adjustments, was transferred to held for sale. |
Business and Summary of Signi24
Business and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
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, necessary 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, 2016 . 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. Some of the more significant estimates include: allowance for loan losses, loan impairment, fair value determination, lease residual values, liabilities for uncertain tax positions, realizability of deferred tax assets, purchase accounting adjustments, indemnification assets, goodwill, intangible assets, and contingent liabilities, including amounts associated with the discontinued operation. Additionally where applicable, the policies conform to accounting and reporting guidelines prescribed by bank regulatory 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 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 Discontinued Operations as of June 30, 2017 and December 31, 2016 included certain assets and liabilities of the Financial Freedom business that was acquired as part of the OneWest Transaction and the Business Air business, while December 31, 2016 also included certain assets and liabilities of the Commercial Air business. Income from discontinued operations reflects the activities of the Aerospace (Commercial Air and Business Air) and Financial Freedom businesses for the quarters ended June 30, 2017 and 2016 . We completed the sale of our Commercial Air business in April 2017. |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES Significant accounting policies are included with the current Form 10-K for the year ended December 31, 2016 . There were no material changes to these policies during the six months ended June 30, 2017 . Newly Adopted Accounting Standards The following pronouncements were issued by the Financial Accounting Standards Board (“FASB”) a nd adopted by CIT as of January 1, 2017. Refer to Note 1 - Business and Summary of Significant Accounting Policies on Form 10-Q for the quarter ended March 31, 2017 for a detailed description of these pronouncements: • Accounting Standards Update (“ASU”) 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. • ASU 2016-06, Derivatives and Hedging (Top 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 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. • ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments - Equity Method and Joint Ventures (Topic 323). • ASU 2017-04, Intangibles-Goodwill and Other (Topic 350). Recent Accounting Pronouncements The following accounting pronouncements were issued by the FASB but are not yet effective for CIT. Refer to Note 1, Business and Summary of Significant Accounting Policies on Form 10-K for the year ended December 31, 2016 for a detailed description of the pronouncements. Standard Summary of Guidance Effect on CIT's Financial Statements ASU 2014-09, Revenue from Contracts with Customers (Topic 606), and subsequent related ASUs Issued May 2014, with Updates through May 2016 • Establishes the principles to apply in determining the amount and timing of revenue recognition. • The guidance specifies the accounting for certain costs related to revenue, and requires additional disclosures about the nature, amount, timing and uncertainty of revenues and related cash flows. • The core principle is that a company will recognize revenue when it transfers control of goods or services to customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. • May be adopted using a full retrospective approach or a modified, cumulative effect approach. • Effective for CIT as of January 1, 2018. • The review and analysis of CIT’s individual revenue streams is substantially complete. “Interest Income” and “Rental Income on Operating Leases”, CIT’s two largest revenue items, are out of scope for the new guidance; as are many other revenues relating to financial assets and liabilities, including loans, leases, securities and derivatives. As such, the majority of our revenues will not be impacted; however, certain ancillary revenues and components of “Other income” are being assessed at a contractual level pursuant to the new standard. We expect our accounting policies will not change materially. • CIT does not anticipate a significant impact on our financial statements and disclosures upon adoption of the standard. Our evaluations are not final and we continue to assess the impact of the Update on our revenue contracts. • CIT plans to adopt the standard using the modified retrospective method (cumulative initial effect recognized at the date of adoption, with additional footnote disclosures). ASU 2016-02, Leases (Topic 842 Issued February 2016 • Lessees will need to recognize all leases longer than twelve months on the consolidated balance sheets as lease liabilities with corresponding right-of-use assets. 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. • 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. • The ASU requires both quantitative and qualitative disclosures regarding key information about leasing arrangements. 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. Early adoption is permitted. • Effective for CIT as of January 1, 2019. • Although the new guidance does not significantly change lessor accounting, CIT will need to determine the impact where it is both a lessee and a lessor: ◦ Lessor accounting: Given limited changes to Lessor accounting, we do not expect material changes to recognition or measurement. Current lease administration and/or reporting systems and processes will need to be evaluated and updated as required to ensure appropriate lease-type identification and classification. ◦ Lessee accounting: CIT expects to recognize right of-use assets and lease liabilities on the balance sheet. The impact on lessee accounting also includes identification of any embedded leases included in service contracts that CIT has with vendors. • CIT management has assembled a project committee and is currently evaluating the potential impact of this ASU on its financial statements and disclosures. Standard Summary of Guidance Effect on CIT's Financial Statements ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Issued June 2016 • Introduces a forward-looking “expected loss” model (the “Current Expected Credit Losses” (“CECL”) model) to estimate credit losses to cover the full remaining expected life of the portfolio upon adoption, rather than the incurred loss model under current U.S. GAAP, on certain types of financial instruments. • It eliminates existing guidance for purchase credit impaired (“PCI”) loans, and requires recognition of an allowance for expected credit losses on financial assets purchased with more than insignificant credit deterioration since origination. • It amends existing impairment guidance for Available for Sale (“AFS”) securities to incorporate an allowance, which will allow for reversals of impairment losses in the event that the credit of an issuer improves. • In addition, it expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for loan and lease losses (ALLL). • 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). • Effective for CIT as of January 1, 2020. • CIT has begun its implementation efforts by establishing a company-wide, cross-discipline governance structure. As part of the assessment phase, CIT is currently identifying key interpretive issues and potential gaps, and is comparing existing credit loss forecasting models and processes with the new guidance. ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities Issued June 2016 • Includes amendments on recognition, measurement, presentation and disclosure of financial instruments. • Adds a new Topic ( ASC 321, Investments - Equity Securities ) to the FASB Accounting Standards Codification, which provides guidance on accounting for equity investments. • Amendments of this guidance should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. • The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption of the Update. • Effective for CIT as of January 1, 2018. • CIT is currently evaluating the impact of this new guidance on the Consolidated Financial Statements and our implementation efforts include the identification of securities within the scope of the guidance and the related impact to accounting policies, presentation, and disclosures. Standard Summary of Guidance Effect on CIT's Financial Statements ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory Issued October 2016 • Requires that the Company recognize the tax expense from the sale of the asset in the seller's tax jurisdiction when the transfer occurs. Any deferred tax asset that arises in the buyer's jurisdiction would also be recognized at the time of the transfer even though the pre-tax effects of the transaction are eliminated in consolidation. • The modified retrospective approach will be required for transition to the new guidance, with a cumulative-effect adjustment recorded in retained earnings as of the beginning of the period of adoption. • Effective for CIT as of January 1, 2018. • CIT is currently evaluating the impact of this new guidance on the Consolidated Financial Statements. ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments Issued August 2016 • Clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows. The new guidance also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. • Requires retrospective application to all periods presented. • Effective for CIT as of January 1, 2018. • CIT is currently evaluating the potential impact on the Consolidated Financial Statements. ASU 2016-18, Statement of Cash Flows (Topic 230):Restricted Cash Issued November 2016 • Requires that the Statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. • Requires retrospective application to all periods presented. • Effective for CIT as of January 1, 2018. • CIT is currently evaluating the potential impact on the Consolidated Financial Statements. ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business Issued January 2017 • This guidance narrows the definition of a business and provides guidance to assist entities with evaluating when a set of transferred assets and activities is a business. • The standard must be applied prospectively to transactions occurring within the period of adoption. • Effective for CIT as of January 1, 2018. • The Company is currently evaluating the impact of this ASU, but does not expect the adoption of this guidance to have a material impact on its Consolidated Financial Statements. ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) Issued February 2017 • This guidance clarifies the scope of accounting for derecognition or partial sale of nonfinancial assets to exclude all businesses and non-profit activities. • ASU 2017-05 also provides a definition for in substance nonfinancial assets and additional guidance on partial sales of nonfinancial assets. • Effective for CIT as of January 1, 2018. • CIT will adopt this guidance in conjunction with the new revenue recognition guidance on a modified retrospective basis. Standard Summary of Guidance Effect on CIT's Financial Statements ASU 2017-07, Compensation- Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost Issued March 2017 • Requires employers that present a measure of operating income in their statement of income to include only the service cost component of net periodic pension cost and net periodic postretirement benefit cost in operating expenses (together with other employee compensation costs). • The other components of net benefit cost, including amortization of prior service cost/credit, and settlement and curtailment effects, are to be included in non-operating expenses in a separate line item(s). • Employers that do not present a measure of operating income are required to include the service cost component in the same line item as other employee compensation costs. • Stipulates that only the service cost component of net benefit cost is eligible for capitalization. • Early adoption is permitted as of the beginning of an annual period for which financial statements have not yet been issued or made available for issuance. The amendments related to presentation of service cost and other components in the income statements must be applied retrospectively to all periods presented. The amendments related to the capitalization of the service cost component should be applied prospectively, on and after the date of adoption • Effective for CIT as of January 1, 2018. • The Company is currently evaluating the impact of this ASU on its financial statements and disclosures and does not intend to early adopt this standard. ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities Issued March 2017 • This amendment shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. • It does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. • Effective for CIT as of January 1, 2019. • The Company is currently evaluating the impact of this ASU on its financial statements and disclosures and does not intend to early adopt this standard. ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting Issued May 2017 • The amendments in this Update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. • Effective for CIT as of January 1, 2018. • Early adoption is permitted, including adoption in any interim period. • The Company does not expect the adoption of this guidance to have a material impact on its Consolidated Financial Statements. |
Impaired Loans | Impaired Loans The Company’s policy is to review for impairment loans greater than $500,000 that are on non-accrual status, as well as short-term factoring receivables greater than $500,000 when events or circumstances indicate that it is probable that CIT will be unable to collect all amounts due according to the contractual terms of the factoring agreement. Small-ticket loan and lease receivables that have not been modified in a restructuring are included (if appropriate) in the reported non-accrual balances above, but are excluded from the impaired loans disclosure below as charge-offs are typically determined and recorded for such loans when they are more than 90 – 150 days past due. |
Litigation and other Contingencies | Litigation and other Contingencies 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 and other matters where losses are reasonably possible, management currently estimates the aggregate range of reasonably possible losses as up to $95 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 June 30, 2017 . 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 significant Litigation matters are described below. |
Business and Summary of Signi25
Business and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following accounting pronouncements were issued by the FASB but are not yet effective for CIT. Refer to Note 1, Business and Summary of Significant Accounting Policies on Form 10-K for the year ended December 31, 2016 for a detailed description of the pronouncements. Standard Summary of Guidance Effect on CIT's Financial Statements ASU 2014-09, Revenue from Contracts with Customers (Topic 606), and subsequent related ASUs Issued May 2014, with Updates through May 2016 • Establishes the principles to apply in determining the amount and timing of revenue recognition. • The guidance specifies the accounting for certain costs related to revenue, and requires additional disclosures about the nature, amount, timing and uncertainty of revenues and related cash flows. • The core principle is that a company will recognize revenue when it transfers control of goods or services to customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. • May be adopted using a full retrospective approach or a modified, cumulative effect approach. • Effective for CIT as of January 1, 2018. • The review and analysis of CIT’s individual revenue streams is substantially complete. “Interest Income” and “Rental Income on Operating Leases”, CIT’s two largest revenue items, are out of scope for the new guidance; as are many other revenues relating to financial assets and liabilities, including loans, leases, securities and derivatives. As such, the majority of our revenues will not be impacted; however, certain ancillary revenues and components of “Other income” are being assessed at a contractual level pursuant to the new standard. We expect our accounting policies will not change materially. • CIT does not anticipate a significant impact on our financial statements and disclosures upon adoption of the standard. Our evaluations are not final and we continue to assess the impact of the Update on our revenue contracts. • CIT plans to adopt the standard using the modified retrospective method (cumulative initial effect recognized at the date of adoption, with additional footnote disclosures). ASU 2016-02, Leases (Topic 842 Issued February 2016 • Lessees will need to recognize all leases longer than twelve months on the consolidated balance sheets as lease liabilities with corresponding right-of-use assets. 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. • 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. • The ASU requires both quantitative and qualitative disclosures regarding key information about leasing arrangements. 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. Early adoption is permitted. • Effective for CIT as of January 1, 2019. • Although the new guidance does not significantly change lessor accounting, CIT will need to determine the impact where it is both a lessee and a lessor: ◦ Lessor accounting: Given limited changes to Lessor accounting, we do not expect material changes to recognition or measurement. Current lease administration and/or reporting systems and processes will need to be evaluated and updated as required to ensure appropriate lease-type identification and classification. ◦ Lessee accounting: CIT expects to recognize right of-use assets and lease liabilities on the balance sheet. The impact on lessee accounting also includes identification of any embedded leases included in service contracts that CIT has with vendors. • CIT management has assembled a project committee and is currently evaluating the potential impact of this ASU on its financial statements and disclosures. Standard Summary of Guidance Effect on CIT's Financial Statements ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Issued June 2016 • Introduces a forward-looking “expected loss” model (the “Current Expected Credit Losses” (“CECL”) model) to estimate credit losses to cover the full remaining expected life of the portfolio upon adoption, rather than the incurred loss model under current U.S. GAAP, on certain types of financial instruments. • It eliminates existing guidance for purchase credit impaired (“PCI”) loans, and requires recognition of an allowance for expected credit losses on financial assets purchased with more than insignificant credit deterioration since origination. • It amends existing impairment guidance for Available for Sale (“AFS”) securities to incorporate an allowance, which will allow for reversals of impairment losses in the event that the credit of an issuer improves. • In addition, it expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for loan and lease losses (ALLL). • 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). • Effective for CIT as of January 1, 2020. • CIT has begun its implementation efforts by establishing a company-wide, cross-discipline governance structure. As part of the assessment phase, CIT is currently identifying key interpretive issues and potential gaps, and is comparing existing credit loss forecasting models and processes with the new guidance. ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities Issued June 2016 • Includes amendments on recognition, measurement, presentation and disclosure of financial instruments. • Adds a new Topic ( ASC 321, Investments - Equity Securities ) to the FASB Accounting Standards Codification, which provides guidance on accounting for equity investments. • Amendments of this guidance should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. • The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption of the Update. • Effective for CIT as of January 1, 2018. • CIT is currently evaluating the impact of this new guidance on the Consolidated Financial Statements and our implementation efforts include the identification of securities within the scope of the guidance and the related impact to accounting policies, presentation, and disclosures. Standard Summary of Guidance Effect on CIT's Financial Statements ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory Issued October 2016 • Requires that the Company recognize the tax expense from the sale of the asset in the seller's tax jurisdiction when the transfer occurs. Any deferred tax asset that arises in the buyer's jurisdiction would also be recognized at the time of the transfer even though the pre-tax effects of the transaction are eliminated in consolidation. • The modified retrospective approach will be required for transition to the new guidance, with a cumulative-effect adjustment recorded in retained earnings as of the beginning of the period of adoption. • Effective for CIT as of January 1, 2018. • CIT is currently evaluating the impact of this new guidance on the Consolidated Financial Statements. ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments Issued August 2016 • Clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows. The new guidance also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. • Requires retrospective application to all periods presented. • Effective for CIT as of January 1, 2018. • CIT is currently evaluating the potential impact on the Consolidated Financial Statements. ASU 2016-18, Statement of Cash Flows (Topic 230):Restricted Cash Issued November 2016 • Requires that the Statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. • Requires retrospective application to all periods presented. • Effective for CIT as of January 1, 2018. • CIT is currently evaluating the potential impact on the Consolidated Financial Statements. ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business Issued January 2017 • This guidance narrows the definition of a business and provides guidance to assist entities with evaluating when a set of transferred assets and activities is a business. • The standard must be applied prospectively to transactions occurring within the period of adoption. • Effective for CIT as of January 1, 2018. • The Company is currently evaluating the impact of this ASU, but does not expect the adoption of this guidance to have a material impact on its Consolidated Financial Statements. ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) Issued February 2017 • This guidance clarifies the scope of accounting for derecognition or partial sale of nonfinancial assets to exclude all businesses and non-profit activities. • ASU 2017-05 also provides a definition for in substance nonfinancial assets and additional guidance on partial sales of nonfinancial assets. • Effective for CIT as of January 1, 2018. • CIT will adopt this guidance in conjunction with the new revenue recognition guidance on a modified retrospective basis. Standard Summary of Guidance Effect on CIT's Financial Statements ASU 2017-07, Compensation- Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost Issued March 2017 • Requires employers that present a measure of operating income in their statement of income to include only the service cost component of net periodic pension cost and net periodic postretirement benefit cost in operating expenses (together with other employee compensation costs). • The other components of net benefit cost, including amortization of prior service cost/credit, and settlement and curtailment effects, are to be included in non-operating expenses in a separate line item(s). • Employers that do not present a measure of operating income are required to include the service cost component in the same line item as other employee compensation costs. • Stipulates that only the service cost component of net benefit cost is eligible for capitalization. • Early adoption is permitted as of the beginning of an annual period for which financial statements have not yet been issued or made available for issuance. The amendments related to presentation of service cost and other components in the income statements must be applied retrospectively to all periods presented. The amendments related to the capitalization of the service cost component should be applied prospectively, on and after the date of adoption • Effective for CIT as of January 1, 2018. • The Company is currently evaluating the impact of this ASU on its financial statements and disclosures and does not intend to early adopt this standard. ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities Issued March 2017 • This amendment shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. • It does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. • Effective for CIT as of January 1, 2019. • The Company is currently evaluating the impact of this ASU on its financial statements and disclosures and does not intend to early adopt this standard. ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting Issued May 2017 • The amendments in this Update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. • Effective for CIT as of January 1, 2018. • Early adoption is permitted, including adoption in any interim period. • The Company does not expect the adoption of this guidance to have a material impact on its Consolidated Financial Statements. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Condensed Balance Sheet, Statement of Operations, and Cash Flows from Discontinued Operations | The following tables reflect the combined results of the discontinued operations. Details of the balances are discussed in prior tables. Condensed Combined Balance Sheet Discontinued Operations (dollars in millions) June 30, 2017 December 31, 2016 Total cash and deposits $ 11.4 $ 764.8 Net Loans 554.3 1,421.7 Operating lease equipment, net 21.0 9,677.6 Goodwill — 126.8 Other assets 44.2 1,229.8 Assets of discontinued operations $ 630.9 $ 13,220.7 Secured borrowings $ 321.6 $ 1,571.0 Other liabilities 286.2 2,166.7 Liabilities of discontinued operations $ 607.8 $ 3,737.7 Condensed Combined Statement of Income Discontinued Operations (dollars in millions) Quarters Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Interest income $ 6.3 $ 18.8 $ 29.2 $ 37.8 Interest expense (3.8 ) (93.6 ) (102.2 ) (188.0 ) Provision for credit losses — (4.8 ) — (14.6 ) Rental income on operating leases 2.0 308.2 308.7 619.5 Other income (losses) (42.8 ) 13.2 (22.1 ) 38.0 Depreciation on operating lease equipment — (113.2 ) — (227.1 ) Maintenance and other operating lease expenses — (14.3 ) (4.2 ) (21.6 ) Operating expenses 45.9 (268.1 ) (1.7 ) (307.6 ) Loss on debt extinguishment — (1.6 ) (39.0 ) (1.6 ) Income (loss) from discontinued operations before benefit (provision) for income taxes 7.6 (155.4 ) 168.7 (65.2 ) Benefit (provision) for income taxes 0.7 84.4 (71.4 ) 79.2 Gain on sale of discontinued operations, net of taxes 107.2 — 119.9 — Income (loss) from discontinued operations, net of taxes $ 115.5 $ (71.0 ) $ 217.2 $ 14.0 Condensed Combined Statement of Cash Flows Discontinued Operations (dollars in millions) Six Months Ended June 30, 2017 2016 Net cash flows used for operations $ 10.3 $ 505.1 Net cash flows provided by (used in) investing activities 10,778.5 (250.3 ) |
Aerospace [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Condensed Balance Sheet, Statement of Operations, and Cash Flows from Discontinued Operations | The following condensed financial information reflects the Business Air business as of June 30, 2017 and a combination of the Commercial Air and Business Air businesses as of December 31, 2016 . Condensed Balance Sheet — Aerospace Discontinued Operations (dollars in millions) June 30, 2017 December 31, 2016 Total cash and deposits $ — $ 759.0 Net Loans 226.7 1,047.7 Operating lease equipment, net 21.0 9,677.6 Goodwill — 126.8 Other assets (1) (2.8 ) 1,161.5 Assets of discontinued operations $ 244.9 $ 12,772.6 Secured borrowings $ — $ 1,204.6 Other liabilities (2) 23.7 1,597.3 Liabilities of discontinued operations $ 23.7 $ 2,801.9 (1) Amount includes Deposits on commercial aerospace equipment of $ 1,013.7 million at December 31, 2016 . (2) Amount includes commercial aerospace maintenance reserves of $ 1,084.9 million and security deposits of $ 167.0 million at December 31, 2016 . As described above, we completed the sale of Commercial Air in April 2017. The purchase price was $10.4 billion , and we recorded a pre-tax gain of $146 million , which is included in the Condensed Statement of Income below for the June 30, 2017 quarter and year to date periods. Operating results for the quarter ended June 30, 2017 were not significant, as the sale occurred at the beginning of the quarter. Condensed Statement of Income — Aerospace Discontinued Operations (dollars in millions) Quarters Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Interest income $ 3.6 $ 15.8 $ 23.8 $ 31.8 Interest expense (1.4 ) (90.9 ) (97.3 ) (182.3 ) Provision for credit losses — (4.8 ) — (14.7 ) Rental income on operating leases 2.0 308.2 308.7 619.5 Other Income — 4.5 13.4 20.5 Depreciation on operating lease equipment (1) — (113.2 ) — (227.1 ) Maintenance and other operating lease expenses — (14.3 ) (4.2 ) (21.6 ) Operating expenses (2) (13.7 ) (23.7 ) (38.6 ) (46.9 ) Loss on debt extinguishment (3) — (1.6 ) (39.0 ) (1.6 ) (Loss) income from discontinued operation before benefit (provision) for income taxes (9.5 ) 80.0 166.8 177.6 Benefit (provision) for income taxes 7.4 15.4 (70.7 ) 7.6 Gain on sale of discontinued operations, net of taxes 107.2 — 119.9 — Income from discontinued operations, net of taxes $ 105.1 $ 95.4 $ 216.0 $ 185.2 (1) Depreciation on operating lease equipment is suspended when an operating lease asset is placed in Assets Held for Sale. (2) Operating expenses for the quarter ended June 30, 2017 , include costs related to the commercial air separation initiative. Operating expense includes salaries and benefits and other operating expenses in the prior quarters. (3) The Company repaid approximately $ 1 billion of secured borrowings in the first quarter of 2017 within discontinued operations and recorded a loss of $ 39 million in relation to the extinguishment of those borrowings. Condensed Statement of Cash Flows — Aerospace Discontinued Operations (dollars in millions) Six Months Ended June 30, 2017 2016 Net cash flows provided by operations $ 31.7 $ 525.7 Net cash flows provided by (used in) investing activities 10,730.2 (296.1 ) |
Financial Freedom [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Condensed Balance Sheet, Statement of Operations, and Cash Flows from Discontinued Operations | Condensed Balance Sheet — Financial Freedom Discontinued Operations (dollars in millions) June 30, 2017 December 31, 2016 Total cash and deposits, all of which is restricted $ 11.4 $ 5.8 Net Loans (1) 327.6 374.0 Other assets (2) 47.0 68.3 Assets of discontinued operations $ 386.0 $ 448.1 Secured borrowings (1) $ 321.6 $ 366.4 Other liabilities (3) 262.5 569.4 Liabilities of discontinued operations $ 584.1 $ 935.8 (1) Net loans include $ 320.7 million and $ 365.5 million of securitized balances at June 30, 2017 and December 31, 2016 , respectively, and $ 6.9 million and $ 8.5 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 quarters ended June 30, 2017 and 2016 are presented below. Condensed Statement of Income — Financial Freedom Discontinued Operations (dollars in millions) Quarters Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Interest income (1) $ 2.7 $ 3.0 $ 5.5 $ 6.0 Interest expense (1) (2.4 ) (2.7 ) (4.9 ) (5.7 ) Other income (losses) (2) (42.8 ) 8.7 (35.5 ) 17.5 Operating expenses (3) 59.6 (244.4 ) 36.9 (260.6 ) Income (loss) from discontinued operation before benefit for income taxes 17.1 (235.4 ) 2.0 (242.8 ) (Provision) benefit for income taxes (4) (6.7 ) 69.0 (0.8 ) 71.6 Income (loss) from discontinued operation, net of taxes $ 10.4 $ (166.4 ) $ 1.2 $ (171.2 ) (1) Includes amortization for the premium associated with the HECM loans and related secured borrowings. (2) For the quarter and six months ended June 30, 2017, other income included an impairment charge of approximately $50 million on the mortgage servicing rights. (3) For the quarter and six months ended June 30, 2017 , operating expense is comprised of approximately $ 5 million and $9 million in salaries and benefits, $2 million and $8 million in professional and legal services, and $ 3 million and $4 million for other expenses such as data processing, premises and equipment, and miscellaneous charges. In addition, in the quarter and six months ended June 2017 , operating expenses included a net release of the curtailment reserve of $111 million , partially offset by an increase of $40 million in other servicing-related reserves. For the quarter and six months ended June 30, 2016 , operating expense is comprised of approximately $ 5 million and $6 million in salaries and benefits, $ 6 million and $10 million in professional services and $ 3 million and $6 million for other expenses such as data processing, premises and equipment, legal settlement, and miscellaneous charges. In addition, in the quarter and six months ended June 30, 2016 , operating expenses included a net increase to the servicing-related reserve of approximately $230 million . (4) For the quarter and six months ended June 30, 2017 , the Company's tax rate for discontinued operations was 39% and 42% , respectively. For the quarter and six months ended June 30 2016 , the Company’s tax rate for discontinued operations was 29% . Condensed Statement of Cash Flows — Financial Freedom Discontinued Operations (dollars in millions) Six Months Ended June 30, 2017 2016 Net cash flows used for operations $ (21.4 ) $ (20.6 ) Net cash flows provided by investing activities 48.3 45.8 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Schedule Of Finance Receivables By Product | Loans, excluding those reflected as discontinued operations, consist of the following: Loans by Product (dollars in millions) June 30, December 31, Commercial loans $ 19,902.3 $ 20,117.8 Direct financing leases and leveraged leases 2,820.6 2,852.9 Total commercial 22,722.9 22,970.7 Consumer loans 6,308.8 6,565.2 Total loans 29,031.7 29,535.9 Loans held for sale (1) 305.4 635.8 Loans and held for sale loans (1) $ 29,337.1 $ 30,171.7 (1) Loans held for sale includes loans primarily related to portfolios in Commercial Banking and the China portfolio in NSP. As discussed in subsequent tables, since the Company manages the credit risk and collections of loans held for sale consistently with its loans held for investment, the aggregate amount is presented in this table. |
Schedule Of Finance Receivables By Segment, Based On Obligor Location | The following table presents loans, excluding loans held for sale, by segment, based on obligor location: Loans (dollars in millions) June 30, 2017 December 31, 2016 Domestic Foreign Total Domestic Foreign Total Commercial Banking $ 20,398.0 $ 1,943.2 $ 22,341.2 $ 20,440.7 $ 2,121.6 $ 22,562.3 Consumer Banking (1) 6,690.5 — 6,690.5 6,973.6 — 6,973.6 Total $ 27,088.5 $ 1,943.2 $ 29,031.7 $ 27,414.3 $ 2,121.6 $ 29,535.9 (1) The Consumer 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 | The following table presents selected components of the net investment in loans: Components of Net Investment in Loans (dollars in millions) June 30, December 31, Unearned income $ (811.7 ) $ (727.1 ) Unamortized premiums / (discounts) (23.4 ) (31.0 ) Accretable yield on Purchased Credit-Impaired (“PCI”) loans (1,176.0 ) (1,261.4 ) Net unamortized deferred costs and (fees) (1) 60.9 55.8 (1) Balance relates to the Commercial Banking segment. |
Finance And Held-For-Sale Receivables - By Risk Rating | The following table summarizes commercial loans 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 Loans and Held for Sale Loans — Risk Rating by Class / Segment (dollars in millions) Grade: Pass Special Mention Classified- accruing Classified- non-accrual PCI Loans Total June 30, 2017 Commercial Banking Commercial Finance $ 7,702.0 $ 488.9 $ 1,162.3 $ 166.1 $ 35.6 $ 9,554.9 Real Estate Finance 5,200.7 165.1 166.4 3.6 65.4 5,601.2 Business Capital 6,612.9 303.5 240.1 59.5 — 7,216.0 Rail 88.8 13.8 1.0 — — 103.6 Total Commercial Banking 19,604.4 971.3 1,569.8 229.2 101.0 22,475.7 Consumer Banking Other Consumer Banking 353.5 4.7 21.2 — 2.4 381.8 Total Consumer Banking 353.5 4.7 21.2 — 2.4 381.8 Non- Strategic Portfolios 68.7 26.0 11.8 8.1 — 114.6 Total $ 20,026.6 $ 1,002.0 $ 1,602.8 $ 237.3 $ 103.4 $ 22,972.1 December 31, 2016 Commercial Banking Commercial Finance $ 8,184.7 $ 677.6 $ 1,181.7 $ 188.8 $ 42.7 $ 10,275.5 Real Estate Finance 5,191.4 168.7 115.6 20.4 70.5 5,566.6 Business Capital 6,238.7 422.0 271.7 41.7 — 6,974.1 Rail 88.7 14.1 0.9 — — 103.7 Total Commercial Banking 19,703.5 1,282.4 1,569.9 250.9 113.2 22,919.9 Consumer Banking Other Consumer Banking 374.9 8.3 22.4 — 2.8 408.4 Total Consumer Banking 374.9 8.3 22.4 — 2.8 408.4 Non- Strategic Portfolios 143.7 36.9 19.1 10.3 — 210.0 Total $ 20,222.1 $ 1,327.6 $ 1,611.4 $ 261.2 $ 116.0 $ 23,538.3 |
Schedule Of Consumer Loan LTV Distributions | The table below summarizes the Consumer loan LTV distribution and the covered loan balances as of June 30, 2017 and December 31, 2016 . Consumer Loan LTV Distribution (dollars in millions) Single Family Residential Reverse Mortgage Covered Loans Non-covered Loans Total Single Family Residential Covered Loans Non-PCI Non-covered Loans Total Reverse Mortgages Total Consumer Loans LTV Range Non-PCI PCI Non-PCI PCI Non-PCI PCI June 30, 2017 Greater than 125% $ 2.3 $ 200.3 $ 9.6 $ — $ 212.2 $ 0.8 $ 10.6 $ 29.8 $ 41.2 $ 253.4 101% – 125% 5.3 356.8 6.3 — 368.4 0.8 14.3 7.3 22.4 390.8 80% – 100% 132.3 601.0 38.6 — 771.9 22.8 35.8 7.6 66.2 838.1 Less than 80% 1,438.0 879.8 1,781.2 7.4 4,106.4 396.8 303.2 11.2 711.2 4,817.6 Not Applicable (1) — — 8.9 — 8.9 — — — — 8.9 Total $ 1,577.9 $ 2,037.9 $ 1,844.6 $ 7.4 $ 5,467.8 $ 421.2 $ 363.9 $ 55.9 $ 841.0 $ 6,308.8 December 31, 2016 Greater than 125% $ 2.2 $ 261.4 $ 12.3 $ — $ 275.9 $ 0.6 $ 8.8 $ 33.8 $ 43.2 $ 319.1 101% – 125% 4.7 443.7 13.6 — 462.0 1.2 12.7 7.9 21.8 483.8 80% – 100% 226.6 588.1 40.5 — 855.2 24.0 42.3 7.5 73.8 929.0 Less than 80% 1,515.6 872.4 1,713.1 9.2 4,110.3 405.4 304.9 9.8 720.1 4,830.4 Not Applicable (1) — — 2.9 — 2.9 — — — — 2.9 Total $ 1,749.1 $ 2,165.6 $ 1,782.4 $ 9.2 $ 5,706.3 $ 431.2 $ 368.7 $ 59.0 $ 858.9 $ 6,565.2 (1) Certain Consumer Loans do not have LTV’s, including the Credit Card portfolio. |
Finance And Held For Sale Receivables - Delinquency Status | The table that follows presents portfolio delinquency status, regardless of accrual/non-accrual classification: Past Due Finance and Held for Sale Loans (dollars in millions) Past Due 30–59 Days Past Due 60–89 Days Past Due 90 Days or Greater Total Past Due Current (1) PCI Loans (2) Total June 30, 2017 Commercial Banking Commercial Finance $ 19.7 $ 11.6 $ 68.7 $ 100.0 $ 9,419.3 $ 35.6 $ 9,554.9 Real Estate Finance — — 3.3 3.3 5,532.5 65.4 5,601.2 Business Capital 95.7 30.3 16.0 142.0 7,074.0 — 7,216.0 Rail 1.0 0.6 0.6 2.2 101.4 — 103.6 Total Commercial Banking 116.4 42.5 88.6 247.5 22,127.2 101.0 22,475.7 Consumer Banking Legacy Consumer Mortgages 20.9 3.8 37.1 61.8 2,392.6 2,101.1 4,555.5 Other Consumer Banking 0.6 — 1.0 1.6 2,187.4 2.4 2,191.4 Total Consumer Banking 21.5 3.8 38.1 63.4 4,580.0 2,103.5 6,746.9 Non-Strategic Portfolios 3.9 3.8 6.7 14.4 100.2 — 114.6 Total $ 141.8 $ 50.1 $ 133.4 $ 325.3 $ 26,807.4 $ 2,204.5 $ 29,337.2 December 31, 2016 Commercial Banking Commercial Finance $ 21.4 $ — $ 17.6 $ 39.0 $ 10,193.8 $ 42.7 $ 10,275.5 Real Estate Finance 0.1 — — 0.1 5,496.0 70.5 5,566.6 Business Capital 143.6 42.4 16.3 202.3 6,771.8 — 6,974.1 Rail 5.9 0.6 2.3 8.8 94.9 — 103.7 Total Commercial Banking 171.0 43.0 36.2 250.2 22,556.5 113.2 22,919.9 Consumer Banking Legacy Consumer Mortgages 22.6 6.1 36.6 65.3 2,563.6 2,233.8 4,862.7 Other Consumer Banking 7.4 4.9 0.6 12.9 2,163.4 2.8 2,179.1 Total Consumer Banking 30.0 11.0 37.2 78.2 4,727.0 2,236.6 7,041.8 Non-Strategic Portfolios 3.0 1.1 7.0 11.1 198.9 — 210.0 Total $ 204.0 $ 55.1 $ 80.4 $ 339.5 $ 27,482.4 $ 2,349.8 $ 30,171.7 (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. |
Finance Receivables On Non-accrual Status | 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. Loans on Non-Accrual Status (dollars in millions) (1) June 30, 2017 December 31, 2016 Held for Investment Held for Sale Total Held for Investment Held for Sale Total Commercial Banking Commercial Finance $ 158.1 $ 8.0 $ 166.1 $ 156.7 $ 32.1 $ 188.8 Real Estate Finance 3.6 — 3.6 20.4 — 20.4 Business Capital 59.5 — 59.5 41.7 — 41.7 Total Commercial Banking 221.2 8.0 229.2 218.8 32.1 250.9 Consumer Banking Legacy Consumer Mortgages 18.7 — 18.7 17.3 — 17.3 Other Consumer Banking 0.8 — 0.8 0.1 — 0.1 Total Consumer Banking 19.5 — 19.5 17.4 — 17.4 Non-Strategic Portfolios — 8.1 8.1 — 10.3 10.3 Total $ 240.7 $ 16.1 $ 256.8 $ 236.2 $ 42.4 $ 278.6 Repossessed assets and OREO 78.6 72.7 Total non-performing assets $ 335.4 $ 351.3 Commercial loans past due 90 days or more accruing $ 12.0 $ 7.2 Consumer loans past due 90 days or more accruing 21.0 24.8 Total Accruing loans past due 90 days or more $ 33.0 $ 32.0 (1) Factored receivables within our Business Capital division do not accrue interest and therefore are not considered within non-accrual loan balances, however are considered for credit provisioning purposes. |
Schedule Of Loans In Process Of Foreclosure | The table below summarizes the residential mortgage loans in the process of foreclosure and OREO: Loans in Process of Foreclosure (dollars in millions) June 30, December 31, PCI $ 172.3 $ 201.7 Non-PCI 117.6 106.3 Loans in process of foreclosure $ 289.9 $ 308.0 OREO $ 65.4 $ 69.9 |
Impaired Loans | The following table contains information about impaired loans and the related allowance for loan losses by class, exclusive of loans 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 (3) Recorded Investment Unpaid Principal Balance Related Allowance Quarter Ended June 30, 2017 Quarter Ended June 30, 2016 Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 June 30, 2017 With no related allowance recorded: Commercial Banking Commercial Finance $ 70.5 $ 80.0 $ — $ 67.5 $ 10.0 $ 63.1 $ 11.8 Business Capital 3.5 4.1 — 6.4 8.3 4.5 7.7 Real Estate Finance 0.7 0.7 — 0.7 2.5 0.7 1.7 With an allowance recorded: Commercial Banking Commercial Finance 135.3 135.4 22.6 135.1 132.6 137.7 122.6 Business Capital 18.7 18.7 10.4 23.2 10.4 17.7 10.2 Real Estate Finance 2.9 2.9 0.4 2.9 3.2 7.5 2.1 Total Impaired Loans (1) 231.6 241.8 33.4 235.8 167.0 231.2 156.1 Total Loans Impaired at Acquisition Date (2) 2,204.5 3,210.3 17.7 2,243.3 2,516.9 2,278.8 2,575.2 Total $ 2,436.1 $ 3,452.1 $ 51.1 $ 2,479.1 $ 2,683.9 $ 2,510.0 $ 2,731.3 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment (3) December 31, 2016 With no related allowance recorded: Commercial Banking Commercial Finance $ 54.3 $ 72.2 $ — $ 29.5 Business Capital 0.5 1.8 — 5.1 Real Estate Finance 0.7 0.7 — 1.3 With an allowance recorded: Commercial Banking Commercial Finance 143.0 146.2 25.5 132.1 Business Capital 6.6 6.6 4.2 8.2 Real Estate Finance 16.7 16.8 4.0 5.2 Total Impaired Loans (1) 221.8 244.3 33.7 181.4 Total Loans Impaired at Acquisition Date (2) 2,349.8 3,440.7 13.6 2,504.4 Total $ 2,571.6 $ 3,685.0 $ 47.3 $ 2,685.8 (1) Interest income recorded for the three and six months ended June 30, 2017 while the loans were impaired was $1.0 million of which none was recognized using cash-basis method of accounting. Interest income recorded for the year ended December 31, 2016 while the loans were impaired was $1.6 million of which $0.6 million was interest recognized using cash-basis method of accounting. (2) Details of finance loans that were identified as impaired at the Acquisition Date are presented under Loans Acquired with Deteriorated Credit Quality. (3) Average recorded investment for the quarters and six months ended June 30, 2017 , June 30, 2016 and year ended December 31, 2016 . |
Purchased Credit Impaired Loans With Deteriorated Credit Quality | Purchased Credit Impaired Loans (dollars in millions) June 30, 2017 Unpaid Principal Balance Carrying Value Allowance for Loan Losses Commercial Banking Commercial Finance $ 60.1 $ 35.6 $ 1.2 Real Estate Finance 91.1 65.4 6.2 Consumer Banking Other Consumer Banking 3.1 2.4 — Legacy Consumer Mortgages 3,056.0 2,101.1 10.3 $ 3,210.3 $ 2,204.5 $ 17.7 December 31, 2016 Commercial Banking Commercial Finance $ 70.0 $ 42.7 $ 2.4 Real Estate Finance 108.1 70.5 4.9 Consumer Banking Other Consumer Banking 3.7 2.8 — Legacy Consumer Mortgages 3,258.9 2,233.8 6.3 $ 3,440.7 $ 2,349.8 $ 13.6 |
Summary Of Commercial PCI Loans | The following table summarizes the carrying value of 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. June 30, 2017 December 31, 2016 (dollars in millions) Non- criticized Criticized Total Non- criticized Criticized Total Commercial Finance $ 6.1 $ 29.5 $ 35.6 $ 5.4 $ 37.3 $ 42.7 Real Estate Finance 25.8 39.6 65.4 35.6 34.9 70.5 Total $ 31.9 $ 69.1 $ 101.0 $ 41.0 $ 72.2 $ 113.2 |
Schedule Of Changes To The Accretable Yield For PCI Loans | Changes in the accretable yield for PCI loans are summarized below for the quarters ended June 30, 2017 and 2016. Change in Accretable Yield (dollars in millions) June 30, 2017 (dollars in millions) Quarter Ended Six months ended Balance, beginning of period $ 1,233.7 $ 1,261.4 Accretion into interest income (53.7 ) (106.3 ) Reclassification from non-accretable difference 0.3 33.7 Disposals and Other (4.3 ) (12.8 ) Balance at June 30, 2017 $ 1,176.0 $ 1,176.0 June 30, 2016 Quarter Ended Six months ended Balance, beginning of period $ 1,281.4 $ 1,299.1 Accretion into interest income (50.5 ) (103.5 ) Reclassification from non-accretable difference 55.8 110.4 Disposals and Other (9.4 ) (28.7 ) Balance at June 30, 2016 $ 1,277.3 $ 1,277.3 |
Estimated Future Advances To Reverse Mortgages | As of June 30, 2017 , the Company’s estimated future advances to reverse mortgagors are as follows: Future Advances (dollars in millions) Year Ending: 2017 $ 7.7 2018 11.4 2019 9.5 2020 7.8 2021 6.4 Years 2022 – 2026 17.6 Years 2027 – 2031 5.4 Years 2032 – 2036 1.4 Thereafter 0.3 Total (1),(2) $ 67.5 (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 June 30, 2017 , the Company is responsible for funding up to a remaining $62 million of the total amount. |
Allowance For Loan Losses (Tabl
Allowance For Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Schedule of Allowance for Loan Losses and Recorded Investment in Finance Receivables | Allowance for Loan Losses and Recorded Investment in Loans (dollars in millions) Commercial Consumer Total Quarter Ended June 30, 2017 Balance - March 31, 2017 $ 424.0 $ 24.6 $ 448.6 Provision for credit losses (0.2 ) 4.6 4.4 Other (1) 1.0 (0.3 ) 0.7 Gross charge-offs (2) (32.3 ) (0.9 ) (33.2 ) Recoveries 5.3 0.2 5.5 Balance - June 30, 2017 $ 397.8 $ 28.2 $ 426.0 Six Months Ended June 30, 2017 Balance - December 31, 2016 $ 408.4 $ 24.2 $ 432.6 Provision for credit losses 49.0 5.1 54.1 Other (1) (5.2 ) (0.3 ) (5.5 ) Gross charge-offs (2) (64.7 ) (1.5 ) (66.2 ) Recoveries 10.3 0.7 11.0 Balance - June 30, 2017 $ 397.8 $ 28.2 $ 426.0 Allowance balance at June 30, 2017 Loans individually evaluated for impairment $ 33.4 $ — $ 33.4 Loans collectively evaluated for impairment 357.0 17.9 374.9 Loans acquired with deteriorated credit quality (3) 7.4 10.3 17.7 Allowance for loan losses $ 397.8 $ 28.2 $ 426.0 Other reserves (1) $ 49.0 $ — $ 49.0 Loans at June 30, 2017 Loans individually evaluated for impairment $ 231.6 $ — $ 231.6 Loans collectively evaluated for impairment 22,008.6 4,587.0 26,595.6 Loans acquired with deteriorated credit quality (3) 101.0 2,103.5 2,204.5 Ending balance $ 22,341.2 $ 6,690.5 $ 29,031.7 Percent of loans to total loans 77.0 % 23.0 % 100 % Allowance for Loan Losses and Recorded Investment in Loans (dollars in millions) Commercial Banking Consumer Banking Total Quarter Ended June 30, 2016 Balance - March 31, 2016 $ 386.0 $ 14.8 $ 400.8 Provision for credit losses 22.2 1.1 23.3 Other (1) 3.5 (0.1 ) 3.4 Gross charge-offs (2) (38.0 ) (0.5 ) (38.5 ) Recoveries 3.3 0.8 4.1 Balance - June 30, 2016 $ 377.0 $ 16.1 $ 393.1 Six Months Ended June 30, 2016 Balance - December 31, 2015 $ 336.8 $ 10.2 $ 347.0 Provision for credit losses 108.6 4.2 112.8 Other (1) (1.6 ) 1.3 (0.3 ) Gross charge-offs (2) (74.1 ) (1.2 ) (75.3 ) Recoveries 7.3 1.6 8.9 Balance - June 30, 2016 $ 377.0 $ 16.1 $ 393.1 Allowance balance at June 30, 2016 Loans individually evaluated for impairment $ 29.4 $ — $ 29.4 Loans collectively evaluated for impairment 345.0 15.4 360.4 Loans acquired with deteriorated credit quality (3) 2.6 0.7 3.3 Allowance for loan losses $ 377.0 $ 16.1 $ 393.1 Other reserves (1) $ 44.7 $ 0.2 $ 44.9 Loans at June 30, 2016 Loans individually evaluated for impairment $ 157.3 $ — $ 157.3 Loans collectively evaluated for impairment 22,691.2 4,767.3 27,458.5 Loans acquired with deteriorated credit quality (3) 125.2 2,352.8 2,478.0 Ending balance $ 22,973.7 $ 7,120.1 $ 30,093.8 Percentage of loans to total loans 76.3 % 23.7 % 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 $16.8 million and $31.6 million for the quarter and six months ended June 30, 2017 , respectively, and $15.0 million and $22.4 million for the quarter and six months ended June 30, 2016 , respectively. The charge-offs related to Commercial Banking for all periods. (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). |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Gain (Loss) on Investments [Line Items] | |
Schedule Of Investment Securities | Investment Securities (dollars in millions) June 30, December 31, Available-for-sale securities Debt securities $ 4,765.0 $ 3,674.1 Equity securities 34.5 34.1 Held-to-maturity securities Debt securities (1) 218.6 243.0 Securities carried at fair value with changes recorded in net income Debt securities 255.6 283.5 Non-marketable investments (2) 256.3 256.4 Total investment securities $ 5,530.0 $ 4,491.1 (1) Recorded at amortized cost. (2) Non-marketable investments include restricted stock of the FRB and FHLB carried at cost of $233.4 million at June 30, 2017 and $239.7 million at December 31, 2016 . 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 $22.9 million and $16.7 million at June 30, 2017 and December 31, 2016 , respectively. |
Schedule Of Interest And Dividend Income | The following table presents interest and dividends on interest bearing deposits and investments: Interest and Dividend Income (dollars in millions) Quarters Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Interest income — investments $ 30.6 $ 19.8 $ 58.4 $ 39.0 Interest income — interest bearing deposits 23.8 8.3 36.3 16.7 Dividends — investments 2.5 3.0 5.8 6.4 Total interest and dividends $ 56.9 $ 31.1 $ 100.5 $ 62.1 |
Amortized Cost And Fair Value Of Securities Available-For-Sale | The following table presents amortized cost and fair value of securities available for sale (“AFS”) and securities held-to-maturity ("HTM"). Amortized Cost and Fair Value (dollars in millions) June 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Debt securities AFS Mortgage-backed Securities U.S. government agency securities $ 3,124.7 $ 2.3 $ (35.9 ) $ 3,091.1 Non-agency securities 429.0 28.7 (0.8 ) 456.9 U.S. government agency obligations 549.9 — (4.2 ) 545.7 U.S. Treasury Securities 372.3 — (0.3 ) 372.0 Supranational securities 299.3 — — 299.3 Total debt securities AFS 4,775.2 31.0 (41.2 ) 4,765.0 Equity securities AFS 35.4 — (0.9 ) 34.5 Total securities AFS 4,810.6 31.0 (42.1 ) 4,799.5 Debt securities HTM Mortgage-backed securities U.S. government agency securities 95.5 0.5 (2.7 ) 93.3 State and municipal 18.8 — (0.4 ) 18.4 Corporate — foreign 104.3 7.6 — 111.9 Total debt securities HTM 218.6 8.1 (3.1 ) 223.6 Total $ 5,029.2 $ 39.1 $ (45.2 ) $ 5,023.1 December 31, 2016 Debt Securities AFS Mortgage-backed Securities U.S. government agency securities $ 2,073.6 $ 1.6 $ (32.3 ) $ 2,042.9 Non-agency securities 471.7 15.6 (1.8 ) 485.5 U.S. government agency obligations 649.9 — (3.9 ) 646.0 U.S. Treasury Securities 299.9 — (0.4 ) 299.5 Supranational securities 200.2 — — 200.2 Total debt securities AFS 3,695.3 17.2 (38.4 ) 3,674.1 Equity securities AFS 35.0 — (0.9 ) 34.1 Total securities AFS 3,730.3 17.2 (39.3 ) 3,708.2 Debt securities HTM Mortgage-backed securities U.S. government agency securities 110.0 0.7 (3.3 ) 107.4 State and municipal 27.7 — (0.5 ) 27.2 Foreign government 2.4 — — 2.4 Corporate — foreign 102.9 6.2 — 109.1 Total debt securities HTM 243.0 6.9 (3.8 ) 246.1 Total $ 3,973.3 $ 24.1 $ (43.1 ) $ 3,954.3 |
Carrying Value And Fair Value Of Securities Held-To-Maturity | The following table presents amortized cost and fair value of securities available for sale (“AFS”) and securities held-to-maturity ("HTM"). Amortized Cost and Fair Value (dollars in millions) June 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Debt securities AFS Mortgage-backed Securities U.S. government agency securities $ 3,124.7 $ 2.3 $ (35.9 ) $ 3,091.1 Non-agency securities 429.0 28.7 (0.8 ) 456.9 U.S. government agency obligations 549.9 — (4.2 ) 545.7 U.S. Treasury Securities 372.3 — (0.3 ) 372.0 Supranational securities 299.3 — — 299.3 Total debt securities AFS 4,775.2 31.0 (41.2 ) 4,765.0 Equity securities AFS 35.4 — (0.9 ) 34.5 Total securities AFS 4,810.6 31.0 (42.1 ) 4,799.5 Debt securities HTM Mortgage-backed securities U.S. government agency securities 95.5 0.5 (2.7 ) 93.3 State and municipal 18.8 — (0.4 ) 18.4 Corporate — foreign 104.3 7.6 — 111.9 Total debt securities HTM 218.6 8.1 (3.1 ) 223.6 Total $ 5,029.2 $ 39.1 $ (45.2 ) $ 5,023.1 December 31, 2016 Debt Securities AFS Mortgage-backed Securities U.S. government agency securities $ 2,073.6 $ 1.6 $ (32.3 ) $ 2,042.9 Non-agency securities 471.7 15.6 (1.8 ) 485.5 U.S. government agency obligations 649.9 — (3.9 ) 646.0 U.S. Treasury Securities 299.9 — (0.4 ) 299.5 Supranational securities 200.2 — — 200.2 Total debt securities AFS 3,695.3 17.2 (38.4 ) 3,674.1 Equity securities AFS 35.0 — (0.9 ) 34.1 Total securities AFS 3,730.3 17.2 (39.3 ) 3,708.2 Debt securities HTM Mortgage-backed securities U.S. government agency securities 110.0 0.7 (3.3 ) 107.4 State and municipal 27.7 — (0.5 ) 27.2 Foreign government 2.4 — — 2.4 Corporate — foreign 102.9 6.2 — 109.1 Total debt securities HTM 243.0 6.9 (3.8 ) 246.1 Total $ 3,973.3 $ 24.1 $ (43.1 ) $ 3,954.3 |
Amortized Cost And Fair Value Of Debt Securities By Contractual Maturity Dates | The following table presents the debt securities AFS and debt securities HTM by contractual maturity dates: Maturities (dollars in millions) June 30, 2017 Amortized Cost Fair Value Weighted Average Yield Debt securities AFS Mortgage-backed securities — U.S. government agency securities After 5 but within 10 years $ 49.2 $ 48.4 1.52 % Due after 10 years 3,075.5 3,042.7 2.36 % Total 3,124.7 3,091.1 2.35 % Mortgage-backed securities — non-agency securities After 5 but within 10 years 21.5 21.5 4.94 % Due after 10 years 407.5 435.4 6.01 % Total 429.0 456.9 5.95 % U.S. government agency obligations After 1 but within 5 years 549.9 545.7 1.22 % Total 549.9 545.7 1.22 % U.S. Treasury Securities Due within 1 year 349.4 349.2 0.88 % After 1 but within 5 years 22.9 22.8 1.01 % Total 372.3 372.0 0.89 % Supranational securities Due within 1 year 299.3 299.3 1.06 % Total 299.3 299.3 1.06 % Total debt securities AFS $ 4,775.2 $ 4,765.0 2.35 % Debt securities HTM Mortgage-backed securities — U.S. government agency securities Due after 10 years $ 95.5 $ 93.3 2.42 % Total 95.5 93.3 2.42 % State and municipal Due within 1 year 0.4 0.4 2.09 % After 1 but within 5 years 0.3 0.3 2.46 % After 5 but within 10 years 0.3 0.3 2.70 % Due after 10 years 17.8 17.4 2.33 % Total 18.8 18.4 2.34 % Corporate — Foreign securities After 1 but within 5 years 104.3 111.9 4.16 % Total 104.3 111.9 4.16 % Total debt securities HTM $ 218.6 $ 223.6 3.24 % |
Schedule Of Debt Securities AFS - Estimated Unrealized Losses | The following table summarizes the gross unrealized losses and estimated fair value of AFS securities and HTM securities aggregated by investment category and length of time that the securities have been in a continuous unrealized loss position. Gross Unrealized Loss (dollars in millions) June 30, 2017 Less than 12 months 12 months or greater Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Securities AFS Debt securities AFS Mortgage-backed securities U.S. government agency securities $ 2,379.5 $ (35.4 ) $ 14.1 $ (0.5 ) Non-agency securities 14.1 (0.4 ) 0.5 (0.4 ) U.S. government agency obligations 545.7 (4.2 ) — — U.S. Treasury Securities 222.2 (0.3 ) — — Total debt securities AFS 3,161.5 (40.3 ) 14.6 (0.9 ) Equity securities AFS 34.3 (0.6 ) 0.1 (0.3 ) Total securities available-for-sale 3,195.8 (40.9 ) 14.7 (1.2 ) Debt Securities HTM Mortgage-backed securities U.S. government agency securities 58.6 (1.4 ) 24.3 (1.3 ) State and municipal 0.9 — 14.9 (0.4 ) Total debt securities held-to-maturity 59.5 (1.4 ) 39.2 (1.7 ) Total $ 3,255.3 $ (42.3 ) $ 53.9 $ (2.9 ) December 31, 2016 Less than 12 months 12 months or greater Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Debt securities AFS Mortgage-backed securities U.S. government agency securities $ 1,589.6 $ (31.8 ) $ 13.8 $ (0.5 ) Non-agency securities 56.5 (1.4 ) 15.8 (0.4 ) U.S. government agency obligations 546.1 (3.9 ) — — U.S. Treasury Securities 299.5 (0.4 ) — — Total debt securities AFS 2,491.7 (37.5 ) 29.6 (0.9 ) Equity securities AFS 34.1 (0.9 ) — — Total securities available-for-sale 2,525.8 (38.4 ) 29.6 (0.9 ) Debt securities HTM Mortgage-backed securities U.S. government agency securities 68.2 (1.7 ) 26.7 (1.6 ) State and municipal 3.8 (0.1 ) 22.4 (0.4 ) Total securities held-to-maturity 72.0 (1.8 ) 49.1 (2.0 ) Total $ 2,597.8 $ (40.2 ) $ 78.7 $ (2.9 ) |
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) June 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Mortgage-backed Securities — Non-agency $ 243.0 $ 12.7 $ (0.1 ) $ 255.6 Total securities held at fair value with changes recorded in net income $ 243.0 $ 12.7 $ (0.1 ) $ 255.6 December 31, 2016 Mortgage-backed Securities — Non-agency $ 277.5 $ 6.7 $ (0.7 ) $ 283.5 Total securities held at fair value with changes recorded in net income $ 277.5 $ 6.7 $ (0.7 ) $ 283.5 |
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) June 30, 2017 Amortized Cost Fair Value Weighted Average Yield Mortgage-backed securities — non-agency securities After 5 but within 10 years $ 0.3 $ 0.3 41.82 % Due after 10 years 242.7 255.3 4.89 % Total $ 243.0 $ 255.6 4.94 % |
Onewest Bank [Member] | Mortgage-Backed Securities [Member] | |
Gain (Loss) on Investments [Line Items] | |
Changes In Accretable Yield For Purchased Credit-Impaired Securities | Changes in the accretable yield for PCI securities are summarized below for the quarter ended June 30, 2017 and June 30, 2016 : Changes in Accretable Yield (dollars in millions) Quarter Ended Six Months Ended June 30, 2017 Balance, beginning of period $ 158.2 $ 165.0 Accretion into interest income (6.3 ) (12.8 ) Reclassifications from non-accretable difference due to improving cash flows 0.4 0.5 Reclassifications to non-accretable difference due to decreasing cash flows (0.3 ) (0.7 ) Disposals and other 0.1 0.1 Balance at June 30, 2017 $ 152.1 $ 152.1 Quarter Ended Six Months Ended June 30, 2016 Balance, beginning of period $ 185.1 $ 189.0 Accretion into interest income (7.4 ) (15.2 ) Reclassifications from non-accretable difference 1.5 5.4 Balance at June 30, 2016 $ 179.2 $ 179.2 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Instrument [Line Items] | |
Schedule of Long-Term Borrowings | The following table presents the carrying value of outstanding borrowings. Borrowings (dollars in millions) June 30, 2017 December 31, 2016 CIT Group Inc. Subsidiaries Total Total Senior Unsecured $ 4,545.1 $ — $ 4,545.1 $ 10,599.0 Secured borrowings: Structured financings — 1,680.8 1,680.8 1,925.7 FHLB advances — 2,395.5 2,395.5 2,410.8 Total Borrowings $ 4,545.1 $ 4,076.3 $ 8,621.4 $ 14,935.5 |
Schedule of FHLB Advances | The following table includes the total outstanding FHLB Advances, and respective pledged assets. FHLB Advances with Pledged Assets Summary (dollars in millions) June 30, 2017 December 31, 2016 FHLB Advances Pledged Assets FHLB Advances Pledged Assets Total $ 2,395.5 $ 6,048.9 $ 2,410.8 $ 6,389.7 |
Schedule of Secured Financings and Pledged Assets | Set forth in the following table are amounts primarily related to structured financings of and assets 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 June 30, 2017 had a weighted average rate of 3.58% , which ranged from 0.56% to 5.74% . Structured Financings and Pledged Assets Summary (dollars in millions) June 30, 2017 December 31, 2016 Secured Borrowing Pledged Assets Secured Borrowing Pledged Assets Business Capital $ 830.1 $ 2,704.4 $ 949.8 $ 2,608.0 Rail (1) 812.1 1,294.6 860.1 1,327.5 Commercial Finance — — — 0.2 Subtotal — Commercial Banking 1,642.2 3,999.0 1,809.9 3,935.7 Non-Strategic Portfolios 38.6 38.6 115.8 212.6 Total $ 1,680.8 $ 4,037.6 $ 1,925.7 $ 4,148.3 (1) At June 30, 2017 , the TRS Transactions related borrowings and pledged assets, respectively, of $511.3 million and $827.2 million were included in Commercial Banking. The TRS Transactions are described in Note 7 — Derivative Financial Instruments . |
Assets and Liabilities in Unconsolidated 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 June 30, 2017 December 31, 2016 Securities Partnership Investment Securities Partnership Investment Agency securities $ 3,186.7 $ — $ 2,152.9 $ — Non agency securities — Other servicer 712.3 — 769.0 — Tax credit equity investments — 215.4 — 167.7 Equity investments — 14.0 — 11.4 Total Assets $ 3,899.0 $ 229.4 $ 2,921.9 $ 179.1 Commitments to tax credit investments $ — $ 100.2 $ — $ 62.3 Total Liabilities $ — $ 100.2 $ — $ 62.3 Maximum loss exposure (1) $ 3,899.0 $ 229.4 $ 2,921.9 $ 179.1 (1) 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 | The following table presents the principal amounts by maturity date. Senior Unsecured Notes (dollars in millions) Maturity Date Rate (%) Date of Issuance Par Value February 2019 5.500% February 2012 $ 781.0 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 4.900% $ 4,531.0 |
Derivative Financial Instrume31
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair and Notional Values of Derivative Financial Instruments | 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) June 30, 2017 December 31, 2016 Qualifying Hedges Notional Amount Asset Fair Value Liability Fair Value Notional Amount Asset Fair Value Liability Fair Value Foreign currency forward contracts — net investment hedges $ 952.5 $ — $ (42.8 ) $ 817.9 $ 16.9 $ — Total Qualifying Hedges 952.5 — (42.8 ) 817.9 16.9 — Non-Qualifying Hedges Interest rate swaps (2) 6,335.7 61.6 (31.2 ) 5,309.2 63.0 (50.1 ) Written options 2,732.7 — (0.8 ) 2,626.5 0.1 (1.0 ) Purchased options 2,518.4 0.8 — 2,129.6 1.0 (0.1 ) Foreign currency forward contracts 1,425.3 16.6 (27.5 ) 1,329.8 30.2 (6.0 ) Total Return Swap (TRS) 165.8 — (12.6 ) 587.5 — (11.3 ) Equity Warrants 1.0 0.3 — 1.0 0.2 — Interest Rate Lock Commitments 6.9 0.1 — 20.7 0.1 (0.1 ) Forward Sale Commitments on Agency MBS 9.0 — — 39.0 0.1 — Credit derivatives 265.4 — (0.1 ) 267.6 — (0.2 ) Total Non-qualifying Hedges 13,460.2 79.4 (72.2 ) 12,310.9 94.7 (68.8 ) Total Hedges $ 14,412.7 $ 79.4 $ (115.0 ) $ 13,128.8 $ 111.6 $ (68.8 ) (1) Presented on a gross basis. (2) Fair value balances include accrued interest. |
Offsetting Assets | 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. Derivative transactions are documented under an International Swaps and Derivatives Association (“ISDA”) agreement. Offsetting of Derivative Assets and Liabilities (dollars in millions) (1) 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 (2) Cash Collateral Pledged/ (Received) (2)(3) Net Amount June 30, 2017 Derivative assets $ 79.4 $ — $ 79.4 $ (26.5 ) $ (3.5 ) $ 49.4 Derivative liabilities (115.0 ) — (115.0 ) 26.5 55.6 (32.9 ) December 31, 2016 Derivative assets $ 111.6 $ — $ 111.6 $ (30.9 ) $ (48.7 ) $ 32.0 Derivative liabilities (68.8 ) — (68.8 ) 30.9 5.0 (32.9 ) (1) Due to a change in clearinghouse rules, the Company accounts for swap contracts cleared by the Chicago Mercantile Exchange (“CME”) as “settled-to-market” effective January 201 7. As a result, variation margin payments are characterized as settlement of the derivative exposure and variation margin balances are netted against the corresponding derivative mark-to-market balances. The Company’s swap contracts cleared by LCH Clearnet (“LCH”) continue to be accounted for as “collateralized-to-market” and variation margin balances are characterized as collateral against derivative exposures. At June 30, 2017 , gross amount of recognized assets and liabilities were lower by $4.1 million and $20.4 million , respectively. (2) 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. (3) Collateral pledged or received is included in Other assets or Other liabilities, respectively. |
Offsetting Liabilities | 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. Derivative transactions are documented under an International Swaps and Derivatives Association (“ISDA”) agreement. Offsetting of Derivative Assets and Liabilities (dollars in millions) (1) 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 (2) Cash Collateral Pledged/ (Received) (2)(3) Net Amount June 30, 2017 Derivative assets $ 79.4 $ — $ 79.4 $ (26.5 ) $ (3.5 ) $ 49.4 Derivative liabilities (115.0 ) — (115.0 ) 26.5 55.6 (32.9 ) December 31, 2016 Derivative assets $ 111.6 $ — $ 111.6 $ (30.9 ) $ (48.7 ) $ 32.0 Derivative liabilities (68.8 ) — (68.8 ) 30.9 5.0 (32.9 ) (1) Due to a change in clearinghouse rules, the Company accounts for swap contracts cleared by the Chicago Mercantile Exchange (“CME”) as “settled-to-market” effective January 201 7. As a result, variation margin payments are characterized as settlement of the derivative exposure and variation margin balances are netted against the corresponding derivative mark-to-market balances. The Company’s swap contracts cleared by LCH Clearnet (“LCH”) continue to be accounted for as “collateralized-to-market” and variation margin balances are characterized as collateral against derivative exposures. At June 30, 2017 , gross amount of recognized assets and liabilities were lower by $4.1 million and $20.4 million , respectively. (2) 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. (3) Collateral pledged or received is included in Other assets or Other liabilities, respectively. |
Derivative Instrument Gains And Losses | The following table presents the impact of derivatives on the statements of income. Derivative Instrument Gains and Losses (dollars in millions) Quarters Ended June 30, Six Months Ended June 30, Derivative Instruments Gain / (Loss) Recognized 2017 2016 2017 2016 Non Qualifying Hedges Interest rate swaps Other income $ 0.5 $ — $ 2.7 $ (2.6 ) Interest rate options Other income 0.1 — 0.2 0.4 Foreign currency forward contracts Other income (20.8 ) 21.6 (27.8 ) (12.3 ) Equity warrants Other income 0.2 — 0.1 (0.3 ) Total Return Swap (TRS) Other income (0.4 ) 8.6 (1.3 ) 26.8 Interest Rate Lock Commitments Other income — 0.1 0.1 0.1 Forward Sale Commitments on Agency MBS Other income (0.2 ) — (0.3 ) — Credit Derivatives Other income — 0.3 — 1.2 Total Non-qualifying Hedges $ (20.6 ) $ 30.6 $ (26.3 ) $ 13.3 Total derivatives-income statement impact $ (20.6 ) $ 30.6 $ (26.3 ) $ 13.3 |
Changes In AOCI Relating To Derivatives | 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 June 30, 2017 Foreign currency forward contracts — net investment hedges $ 6.5 $ — $ 6.5 $ (32.8 ) $ (39.3 ) Total $ 6.5 $ — $ 6.5 $ (32.8 ) $ (39.3 ) Quarter Ended June 30, 2016 Foreign currency forward contracts — net investment hedges $ — $ — $ — $ 5.7 $ 5.7 Total $ — $ — $ — $ 5.7 $ 5.7 Six Months Ended June 30, 2017 Foreign currency forward contracts — net investment hedges $ 13.4 $ — $ 13.4 $ (41.7 ) $ (55.1 ) Total $ 13.4 $ — $ 13.4 $ (41.7 ) $ (55.1 ) Six Months Ended June 30, 2016 Foreign currency forward contracts — net investment hedges $ 1.8 $ — $ 1.8 $ (32.3 ) $ (34.1 ) Total $ 1.8 $ — $ 1.8 $ (32.3 ) $ (34.1 ) |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at 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. Assets and Liabilities Measured at Fair Value on a Recurring Basis (dollars in millions) Total Level 1 Level 2 Level 3 June 30, 2017 Assets Debt Securities AFS $ 4,765.0 $ 349.3 $ 3,958.9 $ 456.8 Securities carried at fair value with changes recorded in net income 255.6 — — 255.6 Equity Securities AFS 34.5 0.2 34.3 — Derivative assets at fair value — non-qualifying hedges (1) 79.4 — 79.3 0.1 Total $ 5,134.5 $ 349.5 $ 4,072.5 $ 712.5 Liabilities Derivative liabilities at fair value — non-qualifying hedges (1) $ (72.2 ) $ — $ (59.5 ) $ (12.7 ) Derivative liabilities at fair value — qualifying hedges (42.8 ) — (42.8 ) — Consideration holdback liability (46.1 ) — — (46.1 ) FDIC True-up Liability (64.3 ) — — (64.3 ) Total $ (225.4 ) $ — $ (102.3 ) $ (123.1 ) December 31, 2016 Assets Debt Securities AFS $ 3,674.1 $ 200.1 $ 2,988.5 $ 485.5 Securities carried at fair value with changes recorded in net income 283.5 — — 283.5 Equity Securities AFS (2) 34.1 0.3 33.8 — Derivative assets at fair value — non-qualifying hedges (1) 94.7 — 94.7 — Derivative assets at fair value — qualifying hedges 16.9 — 16.9 — Total $ 4,103.3 $ 200.4 $ 3,133.9 $ 769.0 Liabilities Derivative liabilities at fair value — non-qualifying hedges (1) $ (68.8 ) $ — $ (57.3 ) $ (11.5 ) Consideration holdback liability (47.2 ) — — (47.2 ) FDIC True-up Liability (61.9 ) — — (61.9 ) Total $ (177.9 ) $ — $ (57.3 ) $ (120.6 ) (1) Derivative fair values include accrued interest |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques | 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 June 30, 2017 and December 31, 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 June 30, 2017 Assets Securities — AFS $ 456.8 Discounted cash flow Discount Rate 0.0% – 52.9% 4.8% Prepayment Rate 3.6% – 22.7% 9.0% Default Rate 0.0% – 9.3% 3.6% Loss Severity 0.6% – 76.4% 38.0% Securities carried at fair value with changes recorded in net income 255.6 Discounted cash flow Discount Rate 1.5% – 47.7% 4.9% Prepayment Rate 5.3% – 18.8% 11.9% Default Rate 3.0% – 8.8% 4.6% Loss Severity 13.1% – 43.8% 25.9% Derivative assets — non qualifying 0.1 Internal valuation model Borrower Rate 3.4% – 5.0% 4.1% Total Assets $ 712.5 Liabilities FDIC True-up liability $ (64.3 ) Discounted cash flow Discount Rate 2.5% 2.5% Consideration holdback liability (46.1 ) Discounted cash flow Payment Probability 28.0% – 100% 40.9% Discount Rate 1.2% – 4.2% 1.8% Derivative liabilities — non-qualifying (12.7 ) Market Comparables (1) Total Liabilities $ (123.1 ) December 31, 2016 Assets Securities — AFS $ 485.5 Discounted cash flow Discount Rate 0.0% – 96.4% 5.5% Prepayment Rate 3.2% – 21.2% 8.8% Default Rate 0.0% – 9.0% 3.9% Loss Severity 1.0% – 79.8% 36.3% Securities carried at fair value with changes recorded in net income 283.5 Discounted cash flow Discount Rate 0.0% – 34.6% 5.6% Prepayment Rate 6.1% – 16.2% 11.9% Default Rate 1.9% – 8.1% 4.6% Loss Severity 22.2% – 44.7% 25.8% Total Assets $ 769.0 Liabilities FDIC True-up liability $ (61.9 ) Discounted cash flow Discount Rate 3.2% 3.2% Consideration holdback liability (47.2 ) Discounted cash flow Payment Probability 0% – 100% 40.9% Discount Rate 1.3% – 4.0% 2.1% Derivative liabilities — non-qualifying (11.5 ) Market Comparables (1) Total Liabilities $ (120.6 ) (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 | 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, 2016 $ 485.5 $ 283.5 $ 0.6 $ — $ (11.5 ) $ (61.9 ) $ (47.2 ) Included in earnings (2.9 ) 8.0 0.7 0.1 (1.2 ) (2.4 ) 1.1 Included in comprehensive income 14.0 — — — — — — Impairment (0.1 ) — — — — — — Settlements (39.7 ) (35.9 ) — — — — — Balance as of June 30, 2017 $ 456.8 $ 255.6 $ 1.3 $ 0.1 $ (12.7 ) $ (64.3 ) $ (46.1 ) December 31, 2015 $ 567.1 $ 339.7 $ 54.8 $ — $ (55.5 ) $ (56.9 ) $ (60.8 ) Included in earnings (3.1 ) 5.5 5.0 0.2 26.8 (2.8 ) (0.7 ) Included in comprehensive income 12.5 — — — — — — Impairment (2.2 ) — — — — — — Settlements (50.9 ) (32.6 ) (6.6 ) — — — 14.3 Balance as of June 30, 2016 $ 523.4 $ 312.6 $ 53.2 $ 0.2 $ (28.7 ) $ (59.7 ) $ (47.2 ) (1) Valuation of Interest Rate Lock Commitments (2) Valuation of the derivatives related to the TRS Transactions and written options on certain CIT Bank CDs. |
Carrying Value of Assets Measured at Fair Value on a Non-Recurring Basis | 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 June 30, 2017 Assets held for sale $ 123.6 $ — $ — $ 123.6 $ (1.9 ) Other real estate owned 17.7 — — 17.7 (1.3 ) Impaired loans 100.7 — — 100.7 (23.5 ) Total $ 242.0 $ — $ — $ 242.0 $ (26.7 ) December 31, 2016 Goodwill $ 51.8 $ — $ — $ 51.8 $ (354.2 ) Assets held for sale 201.6 — — 201.6 (14.7 ) Other real estate owned 22.5 — — 22.5 (3.2 ) Impaired loans 151.9 — — 151.9 (26.8 ) Total $ 427.8 $ — $ — $ 427.8 $ (398.9 ) |
Carrying and Estimated 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 Value Level 1 Level 2 Level 3 Total June 30, 2017 Financial Assets Cash and interest bearing deposits $ 5,337.9 $ 5,337.9 $ — $ — $ 5,337.9 Derivative assets at fair value — non-qualifying hedges 79.4 — 79.3 0.1 79.4 Assets held for sale (excluding leases) 170.8 — 7.4 163.8 171.2 Loans (excluding leases) 26,211.1 — 392.2 26,257.0 26,649.2 Investment securities (1) 5,530.0 349.5 4,145.9 1,039.6 5,535.0 Indemnification assets (2) 179.5 — — 136.0 136.0 Other assets subject to fair value disclosure and unsecured counterparty receivables (3) 597.2 — — 597.2 597.2 Financial Liabilities Deposits (4) (30,942.9 ) — — (31,072.7 ) (31,072.7 ) Derivative liabilities at fair value — non-qualifying hedges (72.2 ) — (59.5 ) (12.7 ) (72.2 ) Derivative liabilities at fair value — qualifying hedges (42.8 ) — (42.8 ) — (42.8 ) Borrowings (4) (8,700.5 ) — (7,982.0 ) (1,055.3 ) (9,037.3 ) Credit balances of factoring clients (1,405.3 ) — — (1,405.3 ) (1,405.3 ) Other liabilities subject to fair value disclosure (5) (682.5 ) — — (682.5 ) (682.5 ) December 31, 2016 Financial Assets Cash and interest bearing deposits $ 6,430.6 $ 6,430.6 $ — $ — $ 6,430.6 Derivative assets at fair value — non-qualifying hedges 94.7 — 94.7 — 94.7 Derivative assets at fair value — qualifying hedges 16.9 — 16.9 — 16.9 Assets held for sale (excluding leases) 428.4 — 175.0 264.6 439.6 Loans (excluding leases) 26,683.0 — 390.3 26,456.4 26,846.7 Investment securities (1) 4,491.1 200.4 3,199.6 1,094.2 4,494.2 Indemnification assets (2) 233.4 — — 201.0 201.0 Other assets subject to fair value disclosure and unsecured counterparty receivables (3) 712.2 — — 712.2 712.2 Financial Liabilities Deposits (4) (32,323.2 ) — — (32,490.9 ) (32,490.9 ) Derivative liabilities at fair value — non-qualifying hedges (68.8 ) — (57.3 ) (11.5 ) (68.8 ) Borrowings (4) (15,097.8 ) — (14,457.8 ) (1,104.9 ) (15,562.7 ) Credit balances of factoring clients (1,292.0 ) — — (1,292.0 ) (1,292.0 ) Other liabilities subject to fair value disclosure (5) (1,003.6 ) — — (1,003.6 ) (1,003.6 ) (1) Level 3 estimated fair value at June 30, 2017 , includes debt securities AFS ( $457 million ), securities carried at fair value with changes recorded in net income ( $256 million ), non-marketable investments ( $256 million ), and debt securities HTM ( $71 million ). Level 3 estimated fair value at December 31, 2016 included debt securities AFS ( $485.5 million ), debt securities carried at fair value with changes recorded in net income ( $283.5 million ), non-marketable investments ( $256.4 million ), and debt securities HTM ( $68.8 million ). (2) The indemnification assets included in the above table do not include Agency claims indemnification ( $28.9 million and $108.0 million at June 30, 2017 and December 31, 2016, respectively), 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) | 6 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Common Stock Activity | A roll forward of common stock is presented in the following table. Number of Shares of Common Stock Issued Less Outstanding Common Stock – December 31, 2016 206,182,213 (4,094,541 ) 202,087,672 Restricted stock issued 1,127,202 – 1,127,202 Repurchase of common stock – (67,363,405 ) (67,363,405 ) Shares held to cover taxes on vesting restricted shares and other – (460,148 ) (460,148 ) Employee stock purchase plan participation 27,274 – 27,274 Common Stock – June 30, 2017 207,336,689 (71,918,094 ) 135,418,595 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table details the components of Accumulated Other Comprehensive Loss, net of tax: Components of Accumulated Other Comprehensive Loss (dollars in millions) June 30, 2017 December 31, 2016 Gross Unrealized Income Taxes Net Unrealized Gross Unrealized Income Taxes Net Unrealized Foreign currency translation adjustments $ (2.2 ) $ (15.7 ) $ (17.9 ) $ (28.6 ) $ (32.8 ) $ (61.4 ) Changes in benefit plan net gain (loss) and prior service (cost)/credit (68.5 ) 4.7 (63.8 ) (70.6 ) 5.3 (65.3 ) Unrealized net gains on available for sale securities (11.1 ) 4.4 (6.7 ) (22.0 ) 8.6 (13.4 ) Total accumulated other comprehensive loss $ (81.8 ) $ (6.6 ) $ (88.4 ) $ (121.2 ) $ (18.9 ) $ (140.1 ) 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, 2016 $ (61.4 ) $ (65.3 ) $ (13.4 ) $ (140.1 ) AOCI activity before reclassifications 17.3 0.9 6.9 25.1 Amounts reclassified from AOCI 26.2 0.6 (0.2 ) 26.6 Net current period AOCI 43.5 1.5 6.7 51.7 Balance as of June 30, 2017 $ (17.9 ) $ (63.8 ) $ (6.7 ) $ (88.4 ) Balance as of December 31, 2015 $ (65.7 ) $ (69.3 ) $ (7.1 ) $ (142.1 ) AOCI activity before reclassifications 13.9 (0.2 ) 14.7 28.4 Amounts reclassified from AOCI 4.7 1.4 — 6.1 Net current period AOCI 18.6 1.2 14.7 34.5 Balance as of June 30, 2016 $ (47.1 ) $ (68.1 ) $ 7.6 $ (107.6 ) |
Reclassifications out of Accumulated Other Comprehensive Income | Reclassifications Out of Accumulated Other Comprehensive Income (dollars in millions) Quarters Ended June 30, 2017 2016 Gross Amount Tax Net Amount Gross Amount Tax Net Amount Income Statement line item Foreign currency translation adjustments losses $ 16.0 $ 0.7 $ 16.7 $ — $ — $ — Gain on sale, discontinued operations Changes in benefit plan net gain/(loss) and prior service (cost)/credit gains (losses) 0.6 — 0.6 0.5 (0.1 ) 0.4 Operating Expenses Unrealized net gains on available for sale securities (0.2 ) — (0.2 ) — — — Other Income Total Reclassifications out of AOCI $ 16.4 $ 0.7 $ 17.1 $ 0.5 $ (0.1 ) $ 0.4 Six Months Ended June 30, 2017 2016 Gross Amount Tax Net Amount Gross Amount Tax Net Amount Income Statement line item Foreign currency translation adjustments losses (1) $ 24.1 $ 2.1 $ 26.2 $ 3.6 $ 1.1 $ 4.7 Other Income Changes in benefit plan net gain/(loss) and prior service (cost)/credit gains (losses) 0.6 — 0.6 1.6 (0.2 ) 1.4 Operating Expenses Unrealized net gains on available for sale securities (0.2 ) — (0.2 ) — — — Other Income Total Reclassifications out of AOCI $ 24.5 $ 2.1 $ 26.6 $ 5.2 $ 0.9 $ 6.1 (1) $16.7 million of the reclassification from AOCI during the second quarter of 2017 was a result of the sale of the Commercial Air business and is recorded in gain on sale of discontinued operations. |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Regulatory Capital Requirements [Abstract] | |
Tier 1 Capital And Total Capital Components | The following table summarizes the actual and minimum required capital ratios: Capital Components and Ratios (dollars in millions, except ratios) CIT CIT Bank, N.A. June 30, December 31, June 30, December 31, Common Equity Tier 1 Capital $ 6,319.5 $ 9,058.9 $ 4,804.8 $ 4,623.2 Tier 1 Capital $ 6,622.1 $ 9,058.9 $ 4,804.8 $ 4,623.2 Total Capital $ 7,097.0 $ 9,535.2 $ 5,228.8 $ 5,053.4 Risk-Weighted Assets (1) $ 43,392.7 $ 64,586.3 $ 33,904.7 $ 34,410.3 Capital Ratios: Common Equity Tier 1 Capital Ratio: Actual 14.6 % 14.0 % 14.2 % 13.4 % Effective minimum ratios under Basel III guidelines (2) 5.750 % 5.125 % 5.750 % 5.125 % Tier 1 Capital Ratio: Actual 15.3 % 14.0 % 14.2 % 13.4 % Effective minimum ratios under Basel III guidelines (2) 7.250 % 6.625 % 7.250 % 6.625 % Total Capital Ratio: Actual 16.4 % 14.8 % 15.4 % 14.7 % Effective minimum ratios under Basel III guidelines (2) 9.250 % 8.625 % 9.250 % 8.625 % Tier 1 Leverage Ratio: Actual 12.1 % 13.9 % 10.5 % 10.9 % Required minimum ratio for capital adequacy purposes 4.0 % 4.0 % 4.0 % 4.0 % (1) The decrease in CIT's Risk-Weighted Assets from December 31, 2016 to June 30, 2017 , reflects the sale of the Commercial Air business. (2) Required ratios under Basel III Final Rule in effect as of the reporting date including the partially phased-in capital conservation buffer. |
Commitments (Tables)
Commitments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Commitments | The accompanying table summarizes credit-related commitments, as well as purchase and funding commitments: Commitments (dollars in millions) June 30, 2017 Due to Expire December 31, Within One Year After One Year Total Outstanding Total Outstanding Financing Commitments Financing assets $ 1,793.8 $ 4,811.8 $ 6,605.6 $ 6,008.1 Letters of credit Standby letters of credit 55.1 191.0 246.1 232.2 Other letters of credit 26.7 — 26.7 14.0 Guarantees Deferred purchase agreements 1,494.1 — 1,494.1 2,060.5 Guarantees, acceptances and other recourse obligations 1.1 — 1.1 1.6 Purchase and Funding Commitments Aerospace purchase commitments (1) — — — 8,683.5 Rail and other purchase commitments 236.1 33.2 269.3 300.7 (1) The Aerospace purchase commitments in the table above are associated with Aerospace discontinued operations which has been sold in April 2017. |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Pre-Tax Income (Loss) | The following table presents segment data related to continuing operations. Refer to Note 25 — Business Segment Information in our Annual Report on Form 10-K for the year ended December 31, 2016 for further detailed information. Segment Pre-tax Income (Loss) (dollars in millions) Commercial Banking Consumer Banking Non-Strategic Portfolios Corporate and Other Total CIT Quarter Ended June 30, 2017 Interest income $ 316.6 $ 101.6 $ 6.2 $ 53.8 $ 478.2 Interest (expense) benefit (127.8 ) 9.6 (5.0 ) (86.0 ) (209.2 ) Provision for credit losses 0.2 (4.6 ) — — (4.4 ) Rental income on operating leases 251.2 — — — 251.2 Other non-interest income 74.8 5.7 0.2 3.9 84.6 Depreciation on operating lease equipment (77.4 ) — — — (77.4 ) Maintenance and other operating lease expenses (53.3 ) — — — (53.3 ) Operating expenses / loss on debt extinguishment and deposit redemption (176.5 ) (96.2 ) (1.8 ) (185.9 ) (460.4 ) Income (loss) from continuing operations before (provision) benefit for income taxes $ 207.8 $ 16.1 $ (0.4 ) $ (214.2 ) $ 9.3 Quarter Ended June 30, 2016 Interest income $ 323.4 $ 103.5 $ 23.2 $ 28.6 $ 478.7 Interest expense (130.3 ) (4.8 ) (13.8 ) (42.7 ) (191.6 ) Provision for credit losses (22.2 ) (1.1 ) — — (23.3 ) Rental income on operating leases 257.0 — 4.0 — 261.0 Other non-interest income 68.0 11.7 6.7 13.4 99.8 Depreciation on operating lease equipment (63.1 ) — — — (63.1 ) Maintenance and other operating lease expenses (50.6 ) — — — (50.6 ) Operating expenses / loss on debt extinguishment (188.0 ) (86.0 ) (12.0 ) (25.7 ) (311.7 ) Income (loss) from continuing operations before (provision) benefit for income taxes $ 194.2 $ 23.3 $ 8.1 $ (26.4 ) $ 199.2 Segment Pre-tax Income (Loss) continued (dollars in millions) Commercial Banking Consumer Banking Non-Strategic Portfolios Corporate and Other Total CIT Six Months Ended June 30, 2017 Interest income $ 624.1 $ 201.6 $ 13.2 $ 95.0 $ 933.9 Interest (expense) benefit (247.6 ) 16.1 (10.0 ) (130.8 ) (372.3 ) Provision for credit losses (49.0 ) (5.1 ) — — (54.1 ) Rental income on operating leases 502.5 — — — 502.5 Other non-interest income 147.1 13.6 (2.7 ) 5.7 163.7 Depreciation on operating lease equipment (150.9 ) — — — (150.9 ) Maintenance and other operating lease expenses (107.1 ) — — — (107.1 ) Operating expenses / loss on debt extinguishment and deposit redemption (355.2 ) (191.8 ) (3.8 ) (221.2 ) (772.0 ) Income (loss) from continuing operations before (provision) benefit for income taxes $ 363.9 $ 34.4 $ (3.3 ) $ (251.3 ) $ 143.7 Select Period End Balances Loans $ 22,341.2 $ 6,690.5 $ — $ — $ 29,031.7 Credit balances of factoring clients 1,405.3 — — — 1,405.3 Assets held for sale 1,153.8 56.4 114.6 — 1,324.8 Operating lease equipment, net 6,736.0 — — — 6,736.0 Six Months Ended June 30, 2016 Interest income $ 647.3 $ 208.8 $ 48.2 $ 57.3 $ 961.6 Interest expense (260.4 ) (12.8 ) (28.3 ) (85.1 ) (386.6 ) Provision for credit losses (108.6 ) (4.2 ) — — (112.8 ) Rental income on operating leases 517.3 — 7.8 — 525.1 Other non-interest income 126.0 19.9 21.2 17.5 184.6 Depreciation on operating lease equipment (124.4 ) — — — (124.4 ) Maintenance and other operating lease expenses (99.5 ) — — — (99.5 ) Operating expenses / loss on debt extinguishment (385.4 ) (171.1 ) (24.2 ) (62.7 ) (643.4 ) Income (loss) from continuing operations before (provision) benefit for income taxes $ 312.3 $ 40.6 $ 24.7 $ (73.0 ) $ 304.6 Select Period End Balances Loans $ 22,973.7 $ 7,120.1 $ — $ — $ 30,093.8 Credit balances of factoring clients 1,215.2 — — — 1,215.2 Assets held for sale 508.2 37.8 1,093.1 — 1,639.1 Operating lease equipment, net 7,179.1 — — — 7,179.1 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes the goodwill balance by segment: Goodwill (dollars in millions) Commercial Banking Consumer Banking Total December 31, 2016 $ 642.2 $ 43.2 $ 685.4 Transfers to Held for Sale (65.1 ) — (65.1 ) Foreign exchange translation 5.2 — 5.2 June 30, 2017 $ 582.3 $ 43.2 $ 625.5 |
Business and Summary of Signi38
Business and Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017USD ($)store | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Accounting Policies [Abstract] | |||
Number of branches acquired | store | 70 | ||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Overstatement of net cash flows provided by operations | $ (222.3) | $ (995.3) | |
Understatement of the increase in other assets line item | 130.1 | (37) | |
Understatement of increase in accrued liabilities and payables line item | (636.6) | 42.4 | |
Overstatement of net cash flows used in investing activities | 10,319.7 | (257.8) | |
Understatement of net cash flows used in financing activities | 11,797.8 | 901.7 | |
Cumulative effect of exchange rates | $ (10) | 2.3 | |
Revisions of Previously Issued Statements of Cash Flows [Member] | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Overstatement of net cash flows provided by operations | $ 36.1 | ||
Understatement of the increase in other assets line item | 57.8 | ||
Understatement of increase in accrued liabilities and payables line item | 57.8 | ||
Overstatement of net cash flows used in investing activities | 48.6 | ||
Understatement of net cash flows used in financing activities | $ 5.8 | ||
Cumulative effect of exchange rates | $ 6.7 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) $ in Millions | May 16, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Apr. 30, 2017 | Dec. 31, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Indemnification receivable from the FDIC | $ 208.5 | $ 208.5 | $ 341.4 | ||||
HUD OIG Investigation [Member] | Unfavorable Regulatory Action [Member] | Settled Litigation [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Amount of settlement | $ 89 | ||||||
Commercial Air [Member] | Discontinued Operations, Disposed of by Sale [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Purchase price | $ 10,400 | ||||||
Pre-tax gain from sale | 146 | 146 | |||||
Financial Freedom [Member] | Discontinued Operations [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Net (decrease) increase to servicing-related reserve | $ 230 | $ 230 | |||||
Financial Freedom [Member] | Discontinued Operations [Member] | HUD OIG Investigation [Member] | Unfavorable Regulatory Action [Member] | Settled Litigation [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Amount of settlement | 89 | ||||||
Financial Freedom [Member] | Discontinued Operations [Member] | Residential Mortgage [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Reduction in indemnification receivable | 77 | 77 | |||||
Indemnification receivable from the FDIC | 29 | 29 | |||||
Net release of curtailment reserve | 111 | 111 | |||||
Increase in other servicing related reserves | 40 | 40 | |||||
Write down of servicing operations | 54 | ||||||
Impairment of mortgage servicing rights liability | $ 50 | ||||||
Net (decrease) increase to servicing-related reserve | $ (102) |
Discontinued Operations (Schedu
Discontinued Operations (Schedule of Condensed Balance Sheet Aerospace Discontinued Operations) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets of discontinued operations | $ 630.9 | $ 13,220.7 |
Liabilities of discontinued operations | 607.8 | 3,737.7 |
Aerospace [Member] | Discontinued Operations, Disposed of by Sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total cash and deposits | 0 | |
Net Loans | 226.7 | |
Operating lease equipment, net | 21 | |
Goodwill | 0 | |
Other assets | (2.8) | |
Assets of discontinued operations | 244.9 | |
Secured borrowings | 0 | |
Other liabilities | 23.7 | |
Liabilities of discontinued operations | $ 23.7 | |
Aerospace [Member] | Discontinued Operations, Held-for-sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total cash and deposits | 759 | |
Net Loans | 1,047.7 | |
Operating lease equipment, net | 9,677.6 | |
Goodwill | 126.8 | |
Other assets | 1,161.5 | |
Assets of discontinued operations | 12,772.6 | |
Secured borrowings | 1,204.6 | |
Other liabilities | 1,597.3 | |
Liabilities of discontinued operations | 2,801.9 | |
Deposits on commercial aerospace equipment | 1,013.7 | |
Maintenance reserves | 1,084.9 | |
Security deposits | $ 167 |
Discontinued Operations (Sche41
Discontinued Operations (Schedule of Condensed Statements of Income and Cash Flow of Aerospace Discontinued Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on sale of discontinued operations, net of taxes | $ 107.2 | $ 0 | $ 119.9 | $ 0 | |
Total income (loss) from discontinued operations, net of taxes | 115.5 | (71) | 217.2 | 14 | |
Aerospace [Member] | Discontinued Operations, Disposed of by Sale [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Interest income | 3.6 | 23.8 | |||
Interest expense | (1.4) | (97.3) | |||
Provision for credit losses | 0 | 0 | |||
Rental income on operating leases | 2 | 308.7 | |||
Other Income | 0 | 13.4 | |||
Depreciation on operating lease equipment | 0 | 0 | |||
Maintenance and other operating lease expenses | 0 | (4.2) | |||
Operating expenses | (13.7) | (38.6) | |||
Loss on debt extinguishment | 0 | (39) | |||
Income from discontinued operation before provision for income taxes | (9.5) | 166.8 | |||
Provision for income taxes | 7.4 | (70.7) | |||
Gain on sale of discontinued operations, net of taxes | 107.2 | 119.9 | |||
Total income (loss) from discontinued operations, net of taxes | 105.1 | $ 216 | |||
Net cash flows used for operations | 31.7 | ||||
Net cash flows provided by (used in) investing activities | $ 10,730.2 | ||||
Aerospace [Member] | Discontinued Operations, Held-for-sale [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Interest income | 15.8 | 31.8 | |||
Interest expense | (90.9) | (182.3) | |||
Provision for credit losses | (4.8) | (14.7) | |||
Rental income on operating leases | 308.2 | 619.5 | |||
Other Income | 4.5 | 20.5 | |||
Depreciation on operating lease equipment | (113.2) | (227.1) | |||
Maintenance and other operating lease expenses | (14.3) | (21.6) | |||
Operating expenses | (23.7) | (46.9) | |||
Loss on debt extinguishment | (1.6) | (1.6) | |||
Income from discontinued operation before provision for income taxes | 80 | 177.6 | |||
Provision for income taxes | 15.4 | 7.6 | |||
Gain on sale of discontinued operations, net of taxes | 0 | 0 | |||
Total income (loss) from discontinued operations, net of taxes | 95.4 | $ 185.2 | |||
Repayment of secured borrowings | $ 1,000 | ||||
Loss from extinguishment of secured borrowings | $ 39 | ||||
Net cash flows used for operations | 525.7 | ||||
Net cash flows provided by (used in) investing activities | $ (296.1) |
Discontinued Operations (Sche42
Discontinued Operations (Schedule of Condensed Balance Sheet Financial Freedom Discontinued Operations) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets of discontinued operations | $ 630.9 | $ 13,220.7 |
Liabilities of discontinued operations | 607.8 | 3,737.7 |
Discontinued Operations [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total cash and deposits, all of which is restricted | 11.4 | 764.8 |
Net Loans | 554.3 | 1,421.7 |
Other assets | 44.2 | 1,229.8 |
Assets of discontinued operations | 630.9 | 13,220.7 |
Secured borrowings | 321.6 | 1,571 |
Other liabilities | 286.2 | 2,166.7 |
Liabilities of discontinued operations | 607.8 | 3,737.7 |
Financial Freedom [Member] | Discontinued Operations [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total cash and deposits, all of which is restricted | 11.4 | 5.8 |
Net Loans | 327.6 | 374 |
Other assets | 47 | 68.3 |
Assets of discontinued operations | 386 | 448.1 |
Secured borrowings | 321.6 | 366.4 |
Other liabilities | 262.5 | 569.4 |
Liabilities of discontinued operations | 584.1 | 935.8 |
Financial Freedom [Member] | Discontinued Operations [Member] | Asset-backed Securities, Securitized Loans and Receivables [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net Loans | 320.7 | 365.5 |
Financial Freedom [Member] | Discontinued Operations [Member] | Asset-backed Securities, Loans and Receivables awaiting Securitization [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net Loans | $ 6.9 | $ 8.5 |
Discontinued Operations (Sche43
Discontinued Operations (Schedule of Condensed Statements of Income and Cash Flow of Financial Freedom Discontinued Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Total income (loss) from discontinued operations, net of taxes | $ 115.5 | $ (71) | $ 217.2 | $ 14 |
Discontinued Operations [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Interest income | 6.3 | 18.8 | 29.2 | 37.8 |
Interest expense | (3.8) | (93.6) | (102.2) | (188) |
Other Income | (42.8) | 13.2 | (22.1) | 38 |
Operating expenses | 45.9 | (268.1) | (1.7) | (307.6) |
Income from discontinued operation before provision for income taxes | 7.6 | (155.4) | 168.7 | (65.2) |
Benefit for income taxes | 0.7 | 84.4 | (71.4) | 79.2 |
Total income (loss) from discontinued operations, net of taxes | 115.5 | (71) | 217.2 | 14 |
Net cash flows used for operations | 10.3 | 505.1 | ||
Net cash flows provided by investing activities | 10,778.5 | (250.3) | ||
Financial Freedom [Member] | Discontinued Operations [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Interest income | 2.7 | 3 | 5.5 | 6 |
Interest expense | (2.4) | (2.7) | (4.9) | (5.7) |
Other Income | (42.8) | 8.7 | (35.5) | 17.5 |
Operating expenses | 59.6 | (244.4) | 36.9 | (260.6) |
Income from discontinued operation before provision for income taxes | 17.1 | (235.4) | 2 | (242.8) |
Benefit for income taxes | (6.7) | 69 | (0.8) | 71.6 |
Total income (loss) from discontinued operations, net of taxes | 10.4 | (166.4) | 1.2 | (171.2) |
Salaries and benefits expense | 5 | 5 | 9 | 6 |
Professional and legal services expense | 2 | 6 | 8 | 10 |
Other expenses | $ 3 | 3 | $ 4 | 6 |
Net (decrease) increase to servicing-related reserve | $ 230 | $ 230 | ||
Tax rate for discontinued operations | 39.00% | 29.00% | 42.00% | 29.00% |
Net cash flows used for operations | $ (21.4) | $ (20.6) | ||
Net cash flows provided by investing activities | 48.3 | $ 45.8 | ||
Financial Freedom [Member] | Discontinued Operations [Member] | Residential Mortgage [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Impairment of mortgage servicing rights liability | $ 50 | |||
Net release of curtailment reserve | 111 | 111 | ||
Increase in other servicing related reserves | $ 40 | 40 | ||
Net (decrease) increase to servicing-related reserve | $ (102) |
Discontinued Operations (Sche44
Discontinued Operations (Schedule of Condensed Combined Balance Sheet of Discontinued Operations) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets of discontinued operations | $ 630.9 | $ 13,220.7 |
Liabilities of discontinued operations | 607.8 | 3,737.7 |
Discontinued Operations [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total cash and deposits | 11.4 | 764.8 |
Net Loans | 554.3 | 1,421.7 |
Operating lease equipment, net | 21 | 9,677.6 |
Goodwill | 0 | 126.8 |
Other assets | 44.2 | 1,229.8 |
Assets of discontinued operations | 630.9 | 13,220.7 |
Secured borrowings | 321.6 | 1,571 |
Other liabilities | 286.2 | 2,166.7 |
Liabilities of discontinued operations | $ 607.8 | $ 3,737.7 |
Discontinued Operations (Sche45
Discontinued Operations (Schedule of Condensed Combined Statements of Income and Cash Flow of Discontinued Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on sale of discontinued operations, net of taxes | $ 107.2 | $ 0 | $ 119.9 | $ 0 |
Total income (loss) from discontinued operations, net of taxes | 115.5 | (71) | 217.2 | 14 |
Discontinued Operations [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Interest income | 6.3 | 18.8 | 29.2 | 37.8 |
Interest expense | (3.8) | (93.6) | (102.2) | (188) |
Provision for credit losses | 0 | (4.8) | 0 | (14.6) |
Rental income on operating leases | 2 | 308.2 | 308.7 | 619.5 |
Other Income | (42.8) | 13.2 | (22.1) | 38 |
Depreciation on operating lease equipment | 0 | (113.2) | 0 | (227.1) |
Maintenance and other operating leases expenses | 0 | (14.3) | (4.2) | (21.6) |
Operating expenses | 45.9 | (268.1) | (1.7) | (307.6) |
Loss on debt extinguishment | 0 | (1.6) | (39) | (1.6) |
Income from discontinued operation before provision for income taxes | 7.6 | (155.4) | 168.7 | (65.2) |
Provision for income taxes | 0.7 | 84.4 | (71.4) | 79.2 |
Gain on sale of discontinued operations, net of taxes | 107.2 | 0 | 119.9 | 0 |
Total income (loss) from discontinued operations, net of taxes | $ 115.5 | $ (71) | 217.2 | 14 |
Net cash flows used for operations | 10.3 | 505.1 | ||
Net cash flows provided by investing activities | $ 10,778.5 | $ (250.3) |
Loans (Schedule of Finance Rece
Loans (Schedule of Finance Receivables by Product) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | $ 29,031.7 | $ 29,535.9 |
Finance receivables held for sale | 305.4 | 635.8 |
Finance receivables and held for sale receivables | 29,337.1 | 30,171.7 |
Commercial Banking [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 22,722.9 | 22,970.7 |
Commercial Banking [Member] | Loans Receivable [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 19,902.3 | 20,117.8 |
Commercial Banking [Member] | Financing Receivable [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 2,820.6 | 2,852.9 |
Consumer Banking [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | $ 6,308.8 | $ 6,565.2 |
Loans (Narrative) (Details)
Loans (Narrative) (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)loan | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Amount FDIC indemnifies against losses | $ 208,500,000 | $ 208,500,000 | $ 341,400,000 | ||
Impaired loan threshold for individual review for impairment | 231,600,000 | $ 157,300,000 | 231,600,000 | $ 157,300,000 | |
Recorded investment of TDRs | $ 114,700,000 | $ 114,700,000 | $ 82,300,000 | ||
Percentage of TDRs non-accrual | 46.00% | 46.00% | 41.00% | ||
Troubled debt restructuring related to modifications | $ 18,700,000 | 6,100,000 | $ 92,700,000 | 19,800,000 | |
Troubled debt restructurings that defaulted within one year | $ 64,000,000 | 2,000,000 | $ 65,600,000 | 4,100,000 | |
Troubled debt restructuring, payment deferral rate (percentage) | 44.00% | 44.00% | 12.00% | ||
Troubled debt restructuring, covenant relief rate, other (percentage) | 56.00% | 56.00% | 88.00% | ||
Financing Receivable | $ 22,972,100,000 | $ 22,972,100,000 | $ 23,538,300,000 | ||
Repurchase of reverse mortgage loans | 122,200,000 | ||||
Repurchased reverse mortgages, balance amount | 147,100,000 | 147,100,000 | |||
Assets Held-For-Sale (AHFS) [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Repurchase of reverse mortgage loans | 21,200,000 | 32,800,000 | |||
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 | 6,200,000 | ||||
Associated purchased accounting discount | 7,900,000 | 68,100,000 | |||
Serviced loans accounted for under effective yield method | 38,900,000 | 30,400,000 | |||
PCI Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable | 103,400,000 | 103,400,000 | 116,000,000 | ||
Associated purchased accounting discount | 9,100,000 | ||||
Minimum [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Impaired loan threshold for individual review for impairment | 500,000 | $ 500,000 | |||
Days past due | 90 days | ||||
Maximum [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Days past due | 150 days | ||||
Reverse Mortgages [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Amount of reverse mortgages uninsured | 746,300,000 | $ 746,300,000 | $ 769,600,000 | ||
Number of loans in portfolio | loan | 1,600 | 1,700 | |||
Average borrower age in portfolio | 83 years | 83 years | |||
Unpaid principal balance | 984,100,000 | $ 984,100,000 | $ 1,027,900,000 | ||
Accruing Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Recorded investment of TDRs | 17,200,000 | 17,200,000 | 38,100,000 | ||
Non-accruing Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Recorded investment of TDRs | 700,000 | 700,000 | 1,400,000 | ||
Reverse Mortgages [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable | 841,000,000 | 841,000,000 | 858,900,000 | ||
Asset-backed Securities, Securitized Loans and Receivables [Member] | Minimum [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Impaired loan threshold for individual review for impairment | 500,000 | 500,000 | |||
Home Affordable Modification Program (HAMP) [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans in trial modification period | 5,600,000 | 36,400,000 | |||
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 | 12,000,000 | 3,000,000 | |||
Single-Family Residential And Reverse Mortgage Loans, IndyMac Transaction [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Amount FDIC indemnifies against losses | 180,000,000 | 180,000,000 | 233,000,000 | ||
Consumer Banking [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans with terms that permitted negative amortization, unpaid principal balance | 670,000,000 | $ 761,000,000 | |||
Impaired loan threshold for individual review for impairment | $ 0 | 0 | $ 0 | 0 | |
Percentage of investments in Troubled Debt Restructurings ("TDR") | 14.00% | 14.00% | 15.00% | ||
Commitments to lend additional funds to borrowers | $ 7,700,000 | $ 7,700,000 | $ 5,400,000 | ||
Financing Receivable | 381,800,000 | 381,800,000 | 408,400,000 | ||
Consumer Banking [Member] | PCI Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable | 2,400,000 | 2,400,000 | $ 2,800,000 | ||
Commercial Banking [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Impaired loan threshold for individual review for impairment | $ 231,600,000 | $ 157,300,000 | $ 231,600,000 | $ 157,300,000 | |
Percentage of investments in Troubled Debt Restructurings ("TDR") | 86.00% | 86.00% | 85.00% | ||
Financing Receivable | $ 22,475,700,000 | $ 22,475,700,000 | $ 22,919,900,000 | ||
Commercial Banking [Member] | PCI Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable | 101,000,000 | 101,000,000 | $ 113,200,000 | ||
HECM Reverse Mortgages [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Repurchase of reverse mortgage loans | 27,400,000 | ||||
HECM Reverse Mortgages [Member] | Assets Held-For-Sale (AHFS) [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Repurchase of reverse mortgage loans | 52,400,000 | ||||
Valuation allowance | 0 | 0 | |||
HECM Reverse Mortgages [Member] | Assets Held-For-Investment (HFI) [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Valuation allowance | $ 63,700,000 | $ 63,700,000 |
Loans (Schedule of Finance Re48
Loans (Schedule of Finance Receivables by Segment, Based on Obligor Location) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | $ 29,031.7 | $ 29,535.9 | $ 30,093.8 |
Domestic [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 27,088.5 | 27,414.3 | |
Foreign [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 1,943.2 | 2,121.6 | |
Commercial Banking [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 22,341.2 | 22,562.3 | 22,973.7 |
Commercial Banking [Member] | Domestic [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 20,398 | 20,440.7 | |
Commercial Banking [Member] | Foreign [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 1,943.2 | 2,121.6 | |
Consumer Banking [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 6,690.5 | 6,973.6 | $ 7,120.1 |
Consumer Banking [Member] | Domestic [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | $ 6,690.5 | $ 6,973.6 |
Loans (Components of Net Invest
Loans (Components of Net Investment in Finance Receivables) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Unearned income | $ (811.7) | $ (727.1) |
Unamortized premiums / (discounts) | (23.4) | (31) |
Accretable yield on Purchased Credit-Impaired (“PCI”) loans | (1,176) | (1,261.4) |
Net unamortized deferred costs and (fees) | $ 60.9 | $ 55.8 |
Loans (Finance and Held-For-Sal
Loans (Finance and Held-For-Sale Receivables - By Risk Rating) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | $ 22,972.1 | $ 23,538.3 |
PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 103.4 | 116 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 20,026.6 | 20,222.1 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 1,002 | 1,327.6 |
Classified - Accruing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 1,602.8 | 1,611.4 |
Classified- Non-accrual [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 237.3 | 261.2 |
Non-Strategic Portfolios [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 210 | |
Non-Strategic Portfolios [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 143.7 | |
Non-Strategic Portfolios [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 36.9 | |
Non-Strategic Portfolios [Member] | Classified - Accruing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 19.1 | |
Non-Strategic Portfolios [Member] | Classified- Non-accrual [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 10.3 | |
Commercial Banking [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 22,475.7 | 22,919.9 |
Commercial Banking [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 101 | 113.2 |
Commercial Banking [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 19,604.4 | 19,703.5 |
Commercial Banking [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 971.3 | 1,282.4 |
Commercial Banking [Member] | Classified - Accruing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 1,569.8 | 1,569.9 |
Commercial Banking [Member] | Classified- Non-accrual [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 229.2 | 250.9 |
Commercial Banking [Member] | Commercial Finance [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 9,554.9 | 10,275.5 |
Commercial Banking [Member] | Commercial Finance [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 35.6 | 42.7 |
Commercial Banking [Member] | Commercial Finance [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 7,702 | 8,184.7 |
Commercial Banking [Member] | Commercial Finance [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 488.9 | 677.6 |
Commercial Banking [Member] | Commercial Finance [Member] | Classified - Accruing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 1,162.3 | 1,181.7 |
Commercial Banking [Member] | Commercial Finance [Member] | Classified- Non-accrual [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 166.1 | 188.8 |
Commercial Banking [Member] | Real Estate Finance [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 5,601.2 | 5,566.6 |
Commercial Banking [Member] | Real Estate Finance [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 65.4 | 70.5 |
Commercial Banking [Member] | Real Estate Finance [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 5,200.7 | 5,191.4 |
Commercial Banking [Member] | Real Estate Finance [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 165.1 | 168.7 |
Commercial Banking [Member] | Real Estate Finance [Member] | Classified - Accruing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 166.4 | 115.6 |
Commercial Banking [Member] | Real Estate Finance [Member] | Classified- Non-accrual [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 3.6 | 20.4 |
Commercial Banking [Member] | Business Capital [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 7,216 | 6,974.1 |
Commercial Banking [Member] | Business Capital [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 6,612.9 | 6,238.7 |
Commercial Banking [Member] | Business Capital [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 303.5 | 422 |
Commercial Banking [Member] | Business Capital [Member] | Classified - Accruing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 240.1 | 271.7 |
Commercial Banking [Member] | Business Capital [Member] | Classified- Non-accrual [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 59.5 | 41.7 |
Commercial Banking [Member] | Rail [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 103.6 | 103.7 |
Commercial Banking [Member] | Rail [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 88.8 | 88.7 |
Commercial Banking [Member] | Rail [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 13.8 | 14.1 |
Commercial Banking [Member] | Rail [Member] | Classified - Accruing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 1 | 0.9 |
Consumer Banking [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 381.8 | 408.4 |
Consumer Banking [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 2.4 | 2.8 |
Consumer Banking [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 353.5 | 374.9 |
Consumer Banking [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 4.7 | 8.3 |
Consumer Banking [Member] | Classified - Accruing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 21.2 | 22.4 |
Consumer Banking [Member] | Other Consumer Banking [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 381.8 | 408.4 |
Consumer Banking [Member] | Other Consumer Banking [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 2.4 | 2.8 |
Consumer Banking [Member] | Other Consumer Banking [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 353.5 | 374.9 |
Consumer Banking [Member] | Other Consumer Banking [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 4.7 | 8.3 |
Consumer Banking [Member] | Other Consumer Banking [Member] | Classified - Accruing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 21.2 | $ 22.4 |
Consumer Banking [Member] | Non-Strategic Portfolios [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 114.6 | |
Consumer Banking [Member] | Non-Strategic Portfolios [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 68.7 | |
Consumer Banking [Member] | Non-Strategic Portfolios [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 26 | |
Consumer Banking [Member] | Non-Strategic Portfolios [Member] | Classified - Accruing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 11.8 | |
Consumer Banking [Member] | Non-Strategic Portfolios [Member] | Classified- Non-accrual [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | $ 8.1 |
Loans (Schedule of Consumer Loa
Loans (Schedule of Consumer Loan LTV Distributions) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | $ 22,972.1 | $ 23,538.3 |
PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 103.4 | 116 |
Single Family Residential Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 5,467.8 | 5,706.3 |
Single Family Residential Mortgages [Member] | Greater than 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 212.2 | 275.9 |
Single Family Residential Mortgages [Member] | 101% - 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 368.4 | 462 |
Single Family Residential Mortgages [Member] | 80% - 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 771.9 | 855.2 |
Single Family Residential Mortgages [Member] | Less than 80% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 4,106.4 | 4,110.3 |
Single Family Residential Mortgages [Member] | Not Applicable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 8.9 | 2.9 |
Single Family Residential Mortgages [Member] | Covered Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 1,577.9 | 1,749.1 |
Single Family Residential Mortgages [Member] | Covered Loans [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 2,037.9 | 2,165.6 |
Single Family Residential Mortgages [Member] | Covered Loans [Member] | Greater than 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 2.3 | 2.2 |
Single Family Residential Mortgages [Member] | Covered Loans [Member] | Greater than 125% [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 200.3 | 261.4 |
Single Family Residential Mortgages [Member] | Covered Loans [Member] | 101% - 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 5.3 | 4.7 |
Single Family Residential Mortgages [Member] | Covered Loans [Member] | 101% - 125% [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 356.8 | 443.7 |
Single Family Residential Mortgages [Member] | Covered Loans [Member] | 80% - 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 132.3 | 226.6 |
Single Family Residential Mortgages [Member] | Covered Loans [Member] | 80% - 100% [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 601 | 588.1 |
Single Family Residential Mortgages [Member] | Covered Loans [Member] | Less than 80% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 1,438 | 1,515.6 |
Single Family Residential Mortgages [Member] | Covered Loans [Member] | Less than 80% [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 879.8 | 872.4 |
Single Family Residential Mortgages [Member] | Non-covered Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 1,844.6 | 1,782.4 |
Single Family Residential Mortgages [Member] | Non-covered Loans [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 7.4 | 9.2 |
Single Family Residential Mortgages [Member] | Non-covered Loans [Member] | Greater than 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 9.6 | 12.3 |
Single Family Residential Mortgages [Member] | Non-covered Loans [Member] | 101% - 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 6.3 | 13.6 |
Single Family Residential Mortgages [Member] | Non-covered Loans [Member] | 80% - 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 38.6 | 40.5 |
Single Family Residential Mortgages [Member] | Non-covered Loans [Member] | Less than 80% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 1,781.2 | 1,713.1 |
Single Family Residential Mortgages [Member] | Non-covered Loans [Member] | Less than 80% [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 7.4 | 9.2 |
Single Family Residential Mortgages [Member] | Non-covered Loans [Member] | Not Applicable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 8.9 | 2.9 |
Reverse Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 841 | 858.9 |
Reverse Mortgages [Member] | Greater than 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 41.2 | 43.2 |
Reverse Mortgages [Member] | 101% - 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 22.4 | 21.8 |
Reverse Mortgages [Member] | 80% - 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 66.2 | 73.8 |
Reverse Mortgages [Member] | Less than 80% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 711.2 | 720.1 |
Reverse Mortgages [Member] | Covered Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 421.2 | 431.2 |
Reverse Mortgages [Member] | Covered Loans [Member] | Greater than 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 0.8 | 0.6 |
Reverse Mortgages [Member] | Covered Loans [Member] | 101% - 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 0.8 | 1.2 |
Reverse Mortgages [Member] | Covered Loans [Member] | 80% - 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 22.8 | 24 |
Reverse Mortgages [Member] | Covered Loans [Member] | Less than 80% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 396.8 | 405.4 |
Reverse Mortgages [Member] | Non-covered Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 363.9 | 368.7 |
Reverse Mortgages [Member] | Non-covered Loans [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 55.9 | 59 |
Reverse Mortgages [Member] | Non-covered Loans [Member] | Greater than 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 10.6 | 8.8 |
Reverse Mortgages [Member] | Non-covered Loans [Member] | Greater than 125% [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 29.8 | 33.8 |
Reverse Mortgages [Member] | Non-covered Loans [Member] | 101% - 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 14.3 | 12.7 |
Reverse Mortgages [Member] | Non-covered Loans [Member] | 101% - 125% [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 7.3 | 7.9 |
Reverse Mortgages [Member] | Non-covered Loans [Member] | 80% - 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 35.8 | 42.3 |
Reverse Mortgages [Member] | Non-covered Loans [Member] | 80% - 100% [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 7.6 | 7.5 |
Reverse Mortgages [Member] | Non-covered Loans [Member] | Less than 80% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 303.2 | 304.9 |
Reverse Mortgages [Member] | Non-covered Loans [Member] | Less than 80% [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 11.2 | 9.8 |
Consumer Banking [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 6,308.8 | 6,565.2 |
Consumer Banking [Member] | Greater than 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 253.4 | 319.1 |
Consumer Banking [Member] | 101% - 125% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 390.8 | 483.8 |
Consumer Banking [Member] | 80% - 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 838.1 | 929 |
Consumer Banking [Member] | Less than 80% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 4,817.6 | 4,830.4 |
Consumer Banking [Member] | Not Applicable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | $ 8.9 | $ 2.9 |
Loans (Finance and Held For Sal
Loans (Finance and Held For Sale Receivables - Delinquency Status) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 325.3 | $ 339.5 |
Current | 26,807.4 | 27,482.4 |
Total Finance Receivables | 29,337.2 | 30,171.7 |
30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 141.8 | 204 |
60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 50.1 | 55.1 |
90 Days Or Greater [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 133.4 | 80.4 |
Non-Strategic Portfolios [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 14.4 | 11.1 |
Current | 100.2 | 198.9 |
Total Finance Receivables | 114.6 | 210 |
Non-Strategic Portfolios [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3.9 | 3 |
Non-Strategic Portfolios [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3.8 | 1.1 |
Non-Strategic Portfolios [Member] | 90 Days Or Greater [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6.7 | 7 |
PCI Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance Receivables | 2,204.5 | 2,349.8 |
Commercial Banking [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 247.5 | 250.2 |
Current | 22,127.2 | 22,556.5 |
Total Finance Receivables | 22,475.7 | 22,919.9 |
Commercial Banking [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 116.4 | 171 |
Commercial Banking [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 42.5 | 43 |
Commercial Banking [Member] | 90 Days Or Greater [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 88.6 | 36.2 |
Commercial Banking [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance Receivables | 101 | 113.2 |
Consumer Banking [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 63.4 | 78.2 |
Current | 4,580 | 4,727 |
Total Finance Receivables | 6,746.9 | 7,041.8 |
Consumer Banking [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 21.5 | 30 |
Consumer Banking [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3.8 | 11 |
Consumer Banking [Member] | 90 Days Or Greater [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 38.1 | 37.2 |
Consumer Banking [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance Receivables | 2,103.5 | 2,236.6 |
Commercial Finance [Member] | Commercial Banking [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 100 | 39 |
Current | 9,419.3 | 10,193.8 |
Total Finance Receivables | 9,554.9 | 10,275.5 |
Commercial Finance [Member] | Commercial Banking [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 19.7 | 21.4 |
Commercial Finance [Member] | Commercial Banking [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 11.6 | |
Commercial Finance [Member] | Commercial Banking [Member] | 90 Days Or Greater [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 68.7 | 17.6 |
Commercial Finance [Member] | Commercial Banking [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance Receivables | 35.6 | 42.7 |
Real Estate Finance [Member] | Commercial Banking [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3.3 | 0.1 |
Current | 5,532.5 | 5,496 |
Total Finance Receivables | 5,601.2 | 5,566.6 |
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 | 0 | 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 | 3.3 | |
Real Estate Finance [Member] | Commercial Banking [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance Receivables | 65.4 | 70.5 |
Business Capital [Member] | Commercial Banking [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 142 | 202.3 |
Current | 7,074 | 6,771.8 |
Total Finance Receivables | 7,216 | 6,974.1 |
Business Capital [Member] | Commercial Banking [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 95.7 | 143.6 |
Business Capital [Member] | Commercial Banking [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 30.3 | 42.4 |
Business Capital [Member] | Commercial Banking [Member] | 90 Days Or Greater [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 16 | 16.3 |
Rail [Member] | Commercial Banking [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2.2 | 8.8 |
Current | 101.4 | 94.9 |
Total Finance Receivables | 103.6 | 103.7 |
Rail [Member] | Commercial Banking [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1 | 5.9 |
Rail [Member] | Commercial Banking [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0.6 | 0.6 |
Rail [Member] | Commercial Banking [Member] | 90 Days Or Greater [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0.6 | 2.3 |
Legacy Consumer Mortgages [Member] | Consumer Banking [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 61.8 | 65.3 |
Current | 2,392.6 | 2,563.6 |
Total Finance Receivables | 4,555.5 | 4,862.7 |
Legacy Consumer Mortgages [Member] | Consumer Banking [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 20.9 | 22.6 |
Legacy Consumer Mortgages [Member] | Consumer Banking [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3.8 | 6.1 |
Legacy Consumer Mortgages [Member] | Consumer Banking [Member] | 90 Days Or Greater [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 37.1 | 36.6 |
Legacy Consumer Mortgages [Member] | Consumer Banking [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance Receivables | 2,101.1 | 2,233.8 |
Other Consumer Banking [Member] | Consumer Banking [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1.6 | 12.9 |
Current | 2,187.4 | 2,163.4 |
Total Finance Receivables | 2,191.4 | 2,179.1 |
Other Consumer Banking [Member] | Consumer Banking [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0.6 | 7.4 |
Other Consumer Banking [Member] | Consumer Banking [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4.9 | |
Other Consumer Banking [Member] | Consumer Banking [Member] | 90 Days Or Greater [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1 | 0.6 |
Other Consumer Banking [Member] | Consumer Banking [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Finance Receivables | $ 2.4 | $ 2.8 |
Loans (Finance Receivables on N
Loans (Finance Receivables on Non-accrual Status) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | $ 256.8 | $ 278.6 |
Repossessed assets and OREO | 78.6 | 72.7 |
Total non-performing assets | 335.4 | 351.3 |
Total Accruing loans past due 90 days or more | 33 | 32 |
Non-Strategic Portfolios [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 8.1 | 10.3 |
Held For Investment [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 240.7 | 236.2 |
Held For Sale [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 16.1 | 42.4 |
Held For Sale [Member] | Non-Strategic Portfolios [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 8.1 | 10.3 |
Commercial Banking [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 229.2 | 250.9 |
Total Accruing loans past due 90 days or more | 12 | 7.2 |
Commercial Banking [Member] | Held For Investment [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 221.2 | 218.8 |
Commercial Banking [Member] | Held For Sale [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 8 | 32.1 |
Consumer Banking [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 19.5 | 17.4 |
Total Accruing loans past due 90 days or more | 21 | 24.8 |
Consumer Banking [Member] | Held For Investment [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 19.5 | 17.4 |
Commercial Finance [Member] | Commercial Banking [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 166.1 | 188.8 |
Commercial Finance [Member] | Commercial Banking [Member] | Held For Investment [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 158.1 | 156.7 |
Commercial Finance [Member] | Commercial Banking [Member] | Held For Sale [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 8 | 32.1 |
Real Estate Finance [Member] | Commercial Banking [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 3.6 | 20.4 |
Real Estate Finance [Member] | Commercial Banking [Member] | Held For Investment [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 3.6 | 20.4 |
Business Capital [Member] | Commercial Banking [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 59.5 | 41.7 |
Business Capital [Member] | Commercial Banking [Member] | Held For Investment [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 59.5 | 41.7 |
Legacy Consumer Mortgages [Member] | Consumer Banking [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 18.7 | 17.3 |
Legacy Consumer Mortgages [Member] | Consumer Banking [Member] | Held For Investment [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 18.7 | 17.3 |
Other Consumer Banking [Member] | Consumer Banking [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | 0.8 | 0.1 |
Other Consumer Banking [Member] | Consumer Banking [Member] | Held For Investment [Member] | ||
Finance Receivables Non Accrual Status By Type Of Holding [Line Items] | ||
Total non-accrual loans | $ 0.8 | $ 0.1 |
Loans (Schedule of Loans In Pro
Loans (Schedule of Loans In Process of Foreclosure) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Loans In Process Of Foreclosure [Line Items] | ||
Loans in process of foreclosure | $ 289.9 | $ 308 |
Non-PCI Loans [Member] | ||
Loans In Process Of Foreclosure [Line Items] | ||
Loans in process of foreclosure | 117.6 | 106.3 |
OREO [Member] | ||
Loans In Process Of Foreclosure [Line Items] | ||
Loans in process of foreclosure | 65.4 | 69.9 |
PCI Loans [Member] | ||
Loans In Process Of Foreclosure [Line Items] | ||
Loans in process of foreclosure | $ 172.3 | $ 201.7 |
Loans (Impaired Loans) (Details
Loans (Impaired Loans) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Financing Receivable, Impaired [Line Items] | |||||
Recorded investment, total | $ 2,436.1 | $ 2,436.1 | $ 2,571.6 | ||
Unpaid principal balance, total | 3,452.1 | 3,452.1 | 3,685 | ||
Related allowance | 51.1 | 51.1 | 47.3 | ||
Average recorded investment, total | 2,479.1 | $ 2,683.9 | 2,510 | $ 2,731.3 | 2,685.8 |
PCI Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded investment, total | 2,204.5 | 2,204.5 | 2,349.8 | ||
Unpaid principal balance, total | 3,210.3 | 3,210.3 | 3,440.7 | ||
Related allowance | 17.7 | 17.7 | 13.6 | ||
Average recorded investment, total | 2,243.3 | 2,516.9 | 2,278.8 | 2,575.2 | 2,504.4 |
Impaired Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded investment, total | 231.6 | 231.6 | 221.8 | ||
Unpaid principal balance, total | 241.8 | 241.8 | 244.3 | ||
Related allowance | 33.4 | 33.4 | 33.7 | ||
Average recorded investment, total | 235.8 | 167 | 231.2 | 156.1 | 181.4 |
Interest income recorded | 1 | 1 | 1.6 | ||
Interest income recognized using cash basis method | 0 | 0 | 0.6 | ||
Commercial Finance [Member] | Commercial Banking [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance, recorded investment | 70.5 | 70.5 | 54.3 | ||
With related allowance, recorded investment | 135.3 | 135.3 | 143 | ||
With no related allowance, unpaid principal balance | 80 | 80 | 72.2 | ||
With related allowance, unpaid principal balance | 135.4 | 135.4 | 146.2 | ||
Related allowance | 22.6 | 22.6 | 25.5 | ||
With no related allowance, average recorded investment | 67.5 | 10 | 63.1 | 11.8 | 29.5 |
With related allowance, average recorded investment | 135.1 | 132.6 | 137.7 | 122.6 | 132.1 |
Commercial Finance [Member] | Commercial Banking [Member] | PCI Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid principal balance, total | 60.1 | 60.1 | 70 | ||
Related allowance | 1.2 | 1.2 | 2.4 | ||
Business Capital [Member] | Commercial Banking [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance, recorded investment | 3.5 | 3.5 | 0.5 | ||
With related allowance, recorded investment | 18.7 | 18.7 | 6.6 | ||
With no related allowance, unpaid principal balance | 4.1 | 4.1 | 1.8 | ||
With related allowance, unpaid principal balance | 18.7 | 18.7 | 6.6 | ||
Related allowance | 10.4 | 10.4 | 4.2 | ||
With no related allowance, average recorded investment | 6.4 | 8.3 | 4.5 | 7.7 | 5.1 |
With related allowance, average recorded investment | 23.2 | 10.4 | 17.7 | 10.2 | 8.2 |
Real Estate Finance [Member] | Commercial Banking [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance, recorded investment | 0.7 | 0.7 | 0.7 | ||
With related allowance, recorded investment | 2.9 | 2.9 | 16.7 | ||
With no related allowance, unpaid principal balance | 0.7 | 0.7 | 0.7 | ||
With related allowance, unpaid principal balance | 2.9 | 2.9 | 16.8 | ||
Related allowance | 0.4 | 0.4 | 4 | ||
With no related allowance, average recorded investment | 0.7 | 2.5 | 0.7 | 1.7 | 1.3 |
With related allowance, average recorded investment | 2.9 | $ 3.2 | 7.5 | $ 2.1 | 5.2 |
Real Estate Finance [Member] | Commercial Banking [Member] | PCI Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid principal balance, total | 91.1 | 91.1 | 108.1 | ||
Related allowance | $ 6.2 | $ 6.2 | $ 4.9 |
Loans (Purchased Credit Impaire
Loans (Purchased Credit Impaired Loans with Deteriorated Credit Quality) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | $ 3,452.1 | $ 3,685 |
Allowance for Loan Losses | 51.1 | 47.3 |
Commercial Banking [Member] | Commercial Finance [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Allowance for Loan Losses | 22.6 | 25.5 |
Commercial Banking [Member] | Real Estate Finance [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Allowance for Loan Losses | 0.4 | 4 |
PCI Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 3,210.3 | 3,440.7 |
Carrying Value | 2,204.5 | 2,349.8 |
Allowance for Loan Losses | 17.7 | 13.6 |
PCI Loans [Member] | Commercial Banking [Member] | Commercial Finance [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 60.1 | 70 |
Carrying Value | 35.6 | 42.7 |
Allowance for Loan Losses | 1.2 | 2.4 |
PCI Loans [Member] | Commercial Banking [Member] | Real Estate Finance [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 91.1 | 108.1 |
Carrying Value | 65.4 | 70.5 |
Allowance for Loan Losses | 6.2 | 4.9 |
PCI Loans [Member] | Consumer Banking [Member] | Other Consumer Banking [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 3.1 | 3.7 |
Carrying Value | 2.4 | 2.8 |
PCI Loans [Member] | Consumer Banking [Member] | Legacy Consumer Mortgages [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 3,056 | 3,258.9 |
Carrying Value | 2,101.1 | 2,233.8 |
Allowance for Loan Losses | $ 10.3 | $ 6.3 |
Loans (Summary of Commercial PC
Loans (Summary of Commercial PCI Loans by Credit Quality) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | $ 22,972.1 | $ 23,538.3 |
Commercial PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 101 | 113.2 |
Commercial PCI Loans [Member] | Non-Criticized [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 31.9 | 41 |
Commercial PCI Loans [Member] | Criticized [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 69.1 | 72.2 |
Commercial Banking [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 22,475.7 | 22,919.9 |
Commercial Banking [Member] | Commercial Finance [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 9,554.9 | 10,275.5 |
Commercial Banking [Member] | Commercial Finance [Member] | Commercial PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 35.6 | 42.7 |
Commercial Banking [Member] | Commercial Finance [Member] | Commercial PCI Loans [Member] | Non-Criticized [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 6.1 | 5.4 |
Commercial Banking [Member] | Commercial Finance [Member] | Commercial PCI Loans [Member] | Criticized [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 29.5 | 37.3 |
Commercial Banking [Member] | Real Estate Finance [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 5,601.2 | 5,566.6 |
Commercial Banking [Member] | Real Estate Finance [Member] | Commercial PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 65.4 | 70.5 |
Commercial Banking [Member] | Real Estate Finance [Member] | Commercial PCI Loans [Member] | Non-Criticized [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | 25.8 | 35.6 |
Commercial Banking [Member] | Real Estate Finance [Member] | Commercial PCI Loans [Member] | Criticized [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable | $ 39.6 | $ 34.9 |
Loans (Schedule of Changes to t
Loans (Schedule of Changes to the Accretable Yield for PCI Loans) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Beginning Balance | $ 1,233.7 | $ 1,281.4 | $ 1,261.4 | $ 1,299.1 |
Accretion into interest income | (53.7) | (50.5) | (106.3) | (103.5) |
Reclassification from non-accretable difference | 0.3 | 55.8 | 33.7 | 110.4 |
Disposals and Other | (4.3) | (9.4) | (12.8) | (28.7) |
Ending Balance | $ 1,176 | $ 1,277.3 | $ 1,176 | $ 1,277.3 |
Loans (Estimated Future Advance
Loans (Estimated Future Advances to Reverse Mortgages) (Details) - Reverse Mortgages [Member] - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Summary Of Estimated Future Advances To Reverse Mortgages [Line Items] | ||
2,017 | $ 7.7 | |
2,018 | 11.4 | |
2,019 | 9.5 | |
2,020 | 7.8 | |
2,021 | 6.4 | |
Years 2022 – 2026 | 17.6 | |
Years 2027 – 2031 | 5.4 | |
Years 2032 – 2036 | 1.4 | |
Thereafter | 0.3 | |
Total | 67.5 | |
FDIC required funding amount of reverse mortgages | $ 62 | $ 55 |
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 | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | $ 448.6 | $ 400.8 | $ 432.6 | $ 347 | |
Provision for credit losses | 4.4 | 23.3 | 54.1 | 112.8 | |
Other | 0.7 | 3.4 | (5.5) | (0.3) | |
Gross charge-offs | (33.2) | (38.5) | (66.2) | (75.3) | |
Recoveries | 5.5 | 4.1 | 11 | 8.9 | |
Allowance balance - end of period | 426 | 393.1 | 426 | 393.1 | |
Allowance balance: Loans individually evaluated for impairment | 33.4 | 29.4 | 33.4 | 29.4 | |
Allowance balance: Loans collectively evaluated for impairment | 374.9 | 360.4 | 374.9 | 360.4 | |
Allowance for loan losses | 426 | 393.1 | |||
Other reserves | 49 | 44.9 | 49 | 44.9 | |
Financing receivables: Loans individually evaluated for impairment | 231.6 | 157.3 | 231.6 | 157.3 | |
Financing receivables: Loans collectively evaluated for impairment | 26,595.6 | 27,458.5 | 26,595.6 | 27,458.5 | |
Finance receivables: Loans acquired with deteriorated credit quality | 22,972.1 | 22,972.1 | $ 23,538.3 | ||
Ending balance | $ 29,031.7 | $ 30,093.8 | $ 29,031.7 | $ 30,093.8 | |
Percentage of loans to total loans | 100.00% | 100.00% | 100.00% | 100.00% | |
PCI Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Finance receivables: Loans acquired with deteriorated credit quality | $ 103.4 | $ 103.4 | 116 | ||
PCI Loans [Member] | Onewest Bank [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Loans acquired with deteriorated credit quality--Allowance | 17.7 | $ 3.3 | 17.7 | $ 3.3 | |
Finance receivables: Loans acquired with deteriorated credit quality | 2,204.5 | 2,478 | 2,204.5 | 2,478 | |
Commercial Banking [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | 424 | 386 | 408.4 | 336.8 | |
Provision for credit losses | (0.2) | 22.2 | 49 | 108.6 | |
Other | 1 | 3.5 | (5.2) | (1.6) | |
Gross charge-offs | (32.3) | (38) | (64.7) | (74.1) | |
Recoveries | 5.3 | 3.3 | 10.3 | 7.3 | |
Allowance balance - end of period | 397.8 | 377 | 397.8 | 377 | |
Allowance balance: Loans individually evaluated for impairment | 33.4 | 29.4 | 33.4 | 29.4 | |
Allowance balance: Loans collectively evaluated for impairment | 357 | 345 | 357 | 345 | |
Allowance for loan losses | 397.8 | 377 | |||
Other reserves | 49 | 44.7 | 49 | 44.7 | |
Financing receivables: Loans individually evaluated for impairment | 231.6 | 157.3 | 231.6 | 157.3 | |
Financing receivables: Loans collectively evaluated for impairment | 22,008.6 | 22,691.2 | 22,008.6 | 22,691.2 | |
Finance receivables: Loans acquired with deteriorated credit quality | 22,475.7 | 22,475.7 | 22,919.9 | ||
Ending balance | $ 22,341.2 | $ 22,973.7 | $ 22,341.2 | $ 22,973.7 | |
Percentage of loans to total loans | 77.00% | 76.30% | 77.00% | 76.30% | |
Gross charge-offs charged directly into specific allowance for loan losses | $ 16.8 | $ 15 | $ 31.6 | $ 22.4 | |
Commercial Banking [Member] | PCI Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Finance receivables: Loans acquired with deteriorated credit quality | 101 | 101 | 113.2 | ||
Commercial Banking [Member] | PCI Loans [Member] | Onewest Bank [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Loans acquired with deteriorated credit quality--Allowance | 7.4 | 2.6 | 7.4 | 2.6 | |
Finance receivables: Loans acquired with deteriorated credit quality | 101 | 125.2 | 101 | 125.2 | |
Consumer Banking [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | 24.6 | 14.8 | 24.2 | 10.2 | |
Provision for credit losses | 4.6 | 1.1 | 5.1 | 4.2 | |
Other | (0.3) | (0.1) | (0.3) | 1.3 | |
Gross charge-offs | (0.9) | (0.5) | (1.5) | (1.2) | |
Recoveries | 0.2 | 0.8 | 0.7 | 1.6 | |
Allowance balance - end of period | 28.2 | 16.1 | 28.2 | 16.1 | |
Allowance balance: Loans individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Allowance balance: Loans collectively evaluated for impairment | 17.9 | 15.4 | 17.9 | 15.4 | |
Allowance for loan losses | 28.2 | 16.1 | |||
Other reserves | 0 | 0.2 | 0 | 0.2 | |
Financing receivables: Loans individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Financing receivables: Loans collectively evaluated for impairment | 4,587 | 4,767.3 | 4,587 | 4,767.3 | |
Finance receivables: Loans acquired with deteriorated credit quality | 381.8 | 381.8 | 408.4 | ||
Ending balance | $ 6,690.5 | $ 7,120.1 | $ 6,690.5 | $ 7,120.1 | |
Percentage of loans to total loans | 23.00% | 23.70% | 23.00% | 23.70% | |
Consumer Banking [Member] | PCI Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Finance receivables: Loans acquired with deteriorated credit quality | $ 2.4 | $ 2.4 | $ 2.8 | ||
Consumer Banking [Member] | PCI Loans [Member] | Onewest Bank [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Loans acquired with deteriorated credit quality--Allowance | 10.3 | $ 0.7 | 10.3 | $ 0.7 | |
Finance receivables: Loans acquired with deteriorated credit quality | $ 2,103.5 | $ 2,352.8 | $ 2,103.5 | $ 2,352.8 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | ||
Investment Holdings [Line Items] | ||||||
Realized investment gains excluding losses from OTTI | $ 0.8 | $ 0.9 | $ 2.3 | $ 1.5 | ||
Interest bearing deposits | [1] | 4,739 | 4,739 | $ 5,608.5 | ||
OTTI credit-related losses, PCI securities | 0 | $ 0.2 | 0.1 | $ 2.2 | ||
Onewest Bank [Member] | Mortgage-Backed Securities [Member] | ||||||
Investment Holdings [Line Items] | ||||||
Estimated fair value of purchased credit-impaired securities | 450.5 | 450.5 | 478.9 | |||
Par value of purchased credit-impaired securities | $ 569.6 | $ 569.6 | $ 615.2 | |||
[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.Assets Cash and interest bearing deposits, restricted$93.2 $99.9Total loans, net of allowance for loan losses181.4 300.5Operating lease equipment, net764.4 775.8Assets of discontinued operations— 2,321.7Total Assets$1,039.0 $3,497.9Liabilities Beneficial interests issued by consolidated VIEs (classified as long-term borrowings)$647.4 $770.0Liabilities of discontinued operations— 1,204.6Total Liabilities$647.4 $1,974.6 |
Investment Securities (Schedule
Investment Securities (Schedule of Investment Securities) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-sale securities | $ 4,799.5 | $ 3,708.2 |
Securities carried at fair value with changes recorded in net income | 255.6 | 283.5 |
Total investment securities | 5,530 | 4,491.1 |
Debt Securities [Member] | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-sale securities | 4,765 | 3,674.1 |
Held-to-maturity securities | 218.6 | 243 |
Securities carried at fair value with changes recorded in net income | 255.6 | 283.5 |
Equity Securities [Member] | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-sale securities | 34.5 | 34.1 |
Equity fund holdings and shares issued by customers during loan work out situations | 22.9 | 16.7 |
Equity Securities [Member] | Federal Reserve Bank Advances [Member] | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Held-to-maturity securities | 233.4 | $ 239.7 |
Equity Securities [Member] | Minimum [Member] | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Percentage of non-marketable equity method ownership interests | 3.00% | |
Non-marketable Investments [Member] | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Total investment securities | $ 256.3 | $ 256.4 |
Investment Securities (Schedu63
Investment Securities (Schedule of Interest and Dividend Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net Investment Income [Line Items] | ||||
Dividends — investments | $ 2.5 | $ 3 | $ 5.8 | $ 6.4 |
Total interest and dividends | 56.9 | 31.1 | 100.5 | 62.1 |
Investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Interest income | 30.6 | 19.8 | 58.4 | 39 |
Interest-bearing Deposits [Member] | ||||
Net Investment Income [Line Items] | ||||
Interest income | $ 23.8 | $ 8.3 | $ 36.3 | $ 16.7 |
Investment Securities (Amortize
Investment Securities (Amortized Cost and Fair Value of AFS and HTM Securities) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 4,810.6 | $ 3,730.3 |
Gross Unrealized Gains | 31 | 17.2 |
Gross Unrealized Losses | (42.1) | (39.3) |
Fair Value | 4,799.5 | 3,708.2 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 5,029.2 | 3,973.3 |
Gross Unrealized Gains | 39.1 | 24.1 |
Gross Unrealized Losses | (45.2) | (43.1) |
Fair Value | 5,023.1 | 3,954.3 |
U.S. Government Agency Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,124.7 | 2,073.6 |
Gross Unrealized Gains | 2.3 | 1.6 |
Gross Unrealized Losses | (35.9) | (32.3) |
Fair Value | 3,091.1 | 2,042.9 |
Non-Agency Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 429 | 471.7 |
Gross Unrealized Gains | 28.7 | 15.6 |
Gross Unrealized Losses | (0.8) | (1.8) |
Fair Value | 456.9 | 485.5 |
U.S. Government Agency Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 549.9 | 649.9 |
Gross Unrealized Losses | (4.2) | (3.9) |
Fair Value | 545.7 | 646 |
U.S. Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 372.3 | 299.9 |
Gross Unrealized Losses | (0.3) | (0.4) |
Fair Value | 372 | 299.5 |
Supranational Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 299.3 | 200.2 |
Fair Value | 299.3 | 200.2 |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,775.2 | 3,695.3 |
Gross Unrealized Gains | 31 | 17.2 |
Gross Unrealized Losses | (41.2) | (38.4) |
Fair Value | 4,765 | 3,674.1 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying Value | 218.6 | 243 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 35.4 | 35 |
Gross Unrealized Losses | (0.9) | (0.9) |
Fair Value | 34.5 | 34.1 |
U.S. Government Agency Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying Value | 95.5 | 110 |
Gross Unrealized Gains | 0.5 | 0.7 |
Gross Unrealized Losses | (2.7) | (3.3) |
Fair Value | 93.3 | 107.4 |
State And Municipal [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying Value | 18.8 | 27.7 |
Gross Unrealized Losses | (0.4) | (0.5) |
Fair Value | 18.4 | 27.2 |
Foreign Government [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying Value | 2.4 | |
Fair Value | 2.4 | |
Corporate - Foreign [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying Value | 104.3 | 102.9 |
Gross Unrealized Gains | 7.6 | 6.2 |
Fair Value | 111.9 | 109.1 |
Debt Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying Value | 218.6 | 243 |
Gross Unrealized Gains | 8.1 | 6.9 |
Gross Unrealized Losses | (3.1) | (3.8) |
Fair Value | $ 223.6 | $ 246.1 |
Investment Securities (Schedu65
Investment Securities (Schedule of Amortized Cost and Fair Value Maturities with Changes Recorded in Net Income) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Total debt securities available-for-sale, Amortized Cost | $ 4,775.2 | |
Total debt securities available-for-sale, Fair Value | $ 4,765 | |
Weighted Average Yield | 2.35% | |
U.S. Government Agency Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
After 5 but within 10 years, Amortized Cost | $ 49.2 | |
Due after 10 years, Amortized Cost | 3,075.5 | |
Total debt securities available-for-sale, Amortized Cost | 3,124.7 | |
After 5 but within 10 years, Fair Value | 48.4 | |
Due after 10 years, Fair Value | 3,042.7 | |
Total debt securities available-for-sale, Fair Value | $ 3,091.1 | |
After 5 but within 10 years, Weighted Average Yield | 1.52% | |
Due after 10 years, Weighted Average Yield | 2.36% | |
Weighted Average Yield | 2.35% | |
Non-Agency Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
After 5 but within 10 years, Amortized Cost | $ 21.5 | |
Due after 10 years, Amortized Cost | 407.5 | |
Total debt securities available-for-sale, Amortized Cost | 429 | |
After 5 but within 10 years, Fair Value | 21.5 | |
Due after 10 years, Fair Value | 435.4 | |
Total debt securities available-for-sale, Fair Value | $ 456.9 | |
After 5 but within 10 years, Weighted Average Yield | 4.94% | |
Due after 10 years, Weighted Average Yield | 6.01% | |
Weighted Average Yield | 5.95% | |
U.S. Government Agency Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
After 1 but within 5 years, Amortized Cost | $ 549.9 | |
Total debt securities available-for-sale, Amortized Cost | 549.9 | |
After 1 but within 5 years, Fair Value | 545.7 | |
Total debt securities available-for-sale, Fair Value | $ 545.7 | |
After 1 but within 5 years, Weighted Average Yield | 1.22% | |
Weighted Average Yield | 1.22% | |
U.S. Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Due within 1 year, Amortized Cost | $ 349.4 | |
After 1 but within 5 years, Amortized Cost | 22.9 | |
Total debt securities available-for-sale, Amortized Cost | 372.3 | |
Due within 1 year, Fair Value | 349.2 | |
After 1 but within 5 years, Fair Value | 22.8 | |
Total debt securities available-for-sale, Fair Value | $ 372 | |
Due within 1 year, Weighted Average Yield | 0.88% | |
After 1 but within 5 years, Weighted Average Yield | 1.01% | |
Weighted Average Yield | 0.89% | |
Supranational Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Due within 1 year, Amortized Cost | $ 299.3 | |
Total debt securities available-for-sale, Amortized Cost | 299.3 | |
Due within 1 year, Fair Value | 299.3 | |
Total debt securities available-for-sale, Fair Value | $ 299.3 | |
Due within 1 year, Weighted Average Yield | 1.06% | |
Weighted Average Yield | 1.06% | |
State And Municipal [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Due within 1 year, Amortized Cost | $ 0.4 | |
After 1 but within 5 years, Amortized Cost | 0.3 | |
After 5 but within 10 years, Amortized Cost | 0.3 | |
Due after 10 years, Amortized Cost | 17.8 | |
Carrying Value | 18.8 | $ 27.7 |
Due within 1 year, Fair Value | 0.4 | |
After 1 but within 5 years, Fair Value | 0.3 | |
After 5 but within 10 years, Fair Value | 0.3 | |
Due after 10 years, Fair Value | 17.4 | |
Fair Value | $ 18.4 | 27.2 |
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 | 2.33% | |
Average Yield | 2.34% | |
U.S. Government Agency Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Due after 10 years, Amortized Cost | $ 95.5 | |
Carrying Value | 95.5 | 110 |
Due after 10 years, Fair Value | 93.3 | |
Fair Value | $ 93.3 | 107.4 |
Due after 10 years, Average Yield | 2.42% | |
Average Yield | 2.42% | |
Corporate - Foreign [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
After 1 but within 5 years, Amortized Cost | $ 104.3 | |
Carrying Value | 104.3 | 102.9 |
After 1 but within 5 years, Fair Value | 111.9 | |
Fair Value | $ 111.9 | 109.1 |
After 1 but within 5 years, Average Yield | 4.16% | |
Average Yield | 4.16% | |
Debt Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying Value | $ 218.6 | 243 |
Fair Value | $ 223.6 | $ 246.1 |
Average Yield | 3.24% |
Investment Securities (Schedu66
Investment Securities (Schedule of AFS and HTM - Estimated Unrealized Losses) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Total securities available-for-sale, Less than 12 months, Fair Value | $ 3,195.8 | $ 2,525.8 |
Total securities available-for-sale, Less than 12 months, Gross Unrealized Loss | (40.9) | (38.4) |
Total securities available-for-sale, 12 months or greater, Fair Value | 14.7 | 29.6 |
Total securities available-for-sale, 12 months or greater, Gross Unrealized Loss | (1.2) | (0.9) |
Schedule of Held-to-maturity Securities [Line Items] | ||
Total securities held-to-maturity, Less than 12 months, Fair Value | 59.5 | 72 |
Total securities held-to-maturity, Less than 12 months, Gross Unrealized Loss | (1.4) | (1.8) |
Total securities held-to-maturity, 12 months or greater, Fair Value | 39.2 | 49.1 |
Total securities held-to-maturity, 12 months or greater, Gross Unrealized Loss | (1.7) | (2) |
Total, Less than 12 months, Fair Value | 3,255.3 | 2,597.8 |
Total, Less than 12 months, Gross Unrealized Loss | (42.3) | (40.2) |
Total, 12 months or greater, Fair Value | 53.9 | 78.7 |
Total, 12 months or greater, Gross Unrealized Loss | (2.9) | (2.9) |
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 | 2,379.5 | 1,589.6 |
Total securities available-for-sale, Less than 12 months, Gross Unrealized Loss | (35.4) | (31.8) |
Total securities available-for-sale, 12 months or greater, Fair Value | 14.1 | 13.8 |
Total securities available-for-sale, 12 months or greater, Gross Unrealized Loss | (0.5) | (0.5) |
Non-Agency Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total securities available-for-sale, Less than 12 months, Fair Value | 14.1 | 56.5 |
Total securities available-for-sale, Less than 12 months, Gross Unrealized Loss | (0.4) | (1.4) |
Total securities available-for-sale, 12 months or greater, Fair Value | 0.5 | 15.8 |
Total securities available-for-sale, 12 months or greater, Gross Unrealized Loss | (0.4) | (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 | 545.7 | 546.1 |
Total securities available-for-sale, Less than 12 months, Gross Unrealized Loss | (4.2) | (3.9) |
U.S. Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total securities available-for-sale, Less than 12 months, Fair Value | 222.2 | 299.5 |
Total securities available-for-sale, Less than 12 months, Gross Unrealized Loss | (0.3) | (0.4) |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total securities available-for-sale, Less than 12 months, Fair Value | 3,161.5 | 2,491.7 |
Total securities available-for-sale, Less than 12 months, Gross Unrealized Loss | (40.3) | (37.5) |
Total securities available-for-sale, 12 months or greater, Fair Value | 14.6 | 29.6 |
Total securities available-for-sale, 12 months or greater, Gross Unrealized Loss | (0.9) | (0.9) |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total securities available-for-sale, Less than 12 months, Fair Value | 34.3 | 34.1 |
Total securities available-for-sale, Less than 12 months, Gross Unrealized Loss | (0.6) | (0.9) |
Total securities available-for-sale, 12 months or greater, Fair Value | 0.1 | |
Total securities available-for-sale, 12 months or greater, Gross Unrealized Loss | (0.3) | |
U.S. Government Agency Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total securities held-to-maturity, Less than 12 months, Fair Value | 58.6 | 68.2 |
Total securities held-to-maturity, Less than 12 months, Gross Unrealized Loss | (1.4) | (1.7) |
Total securities held-to-maturity, 12 months or greater, Fair Value | 24.3 | 26.7 |
Total securities held-to-maturity, 12 months or greater, Gross Unrealized Loss | (1.3) | (1.6) |
State And Municipal [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total securities held-to-maturity, Less than 12 months, Fair Value | 0.9 | 3.8 |
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 | 14.9 | 22.4 |
Total securities held-to-maturity, 12 months or greater, Gross Unrealized Loss | $ (0.4) | $ (0.4) |
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 | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Beginning Balance | $ 158.2 | $ 185.1 | $ 165 | $ 189 |
Accretion into interest income | (6.3) | (7.4) | (12.8) | (15.2) |
Reclassifications from non-accretable difference due to improving cash flows | 0.4 | 1.5 | 0.5 | 5.4 |
Reclassifications to non-accretable difference due to decreasing cash flows | (0.3) | (0.7) | ||
Disposals and other | 0.1 | 0.1 | ||
Ending Balance | $ 152.1 | $ 179.2 | $ 152.1 | $ 179.2 |
Investment Securities (Schedu68
Investment Securities (Schedule of Securities Carried at Fair Value with Changes Recorded in Net Income) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 243 | $ 277.5 |
Gross Unrealized Gains | 12.7 | 6.7 |
Gross Unrealized Losses | (0.1) | (0.7) |
Fair Value | 255.6 | 283.5 |
Mortgage-Backed Securities - Non-Agency [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 243 | 277.5 |
Gross Unrealized Gains | 12.7 | 6.7 |
Gross Unrealized Losses | (0.1) | (0.7) |
Fair Value | $ 255.6 | $ 283.5 |
Investment Securities (Amorti69
Investment Securities (Amortized Cost and Fair Value of Debt Securities Held-To-Maturity by Contractual Maturity Dates) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 243 | $ 277.5 |
Fair Value | 255.6 | $ 283.5 |
Non-Agency Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost, After 5 but within 10 years | 0.3 | |
Fair Value, After 5 but within 10 years | $ 0.3 | |
Weighted Average Yield, After 5 but within 10 years | 41.82% | |
Amortized Cost, Due after 10 years | $ 242.7 | |
Fair Value, Due after 10 years | $ 255.3 | |
Weighted Average Yield, Due after 10 years | 4.89% | |
Amortized Cost | $ 243 | |
Fair Value | $ 255.6 | |
Weighted Average Yield | 4.94% |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) | Apr. 18, 2017USD ($) | Jun. 30, 2017USD ($)subsidiary | Jun. 30, 2017USD ($)subsidiary | May 04, 2017USD ($) | Apr. 04, 2017USD ($) | Apr. 03, 2017USD ($)subsidiary | Feb. 28, 2017USD ($) | Jan. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | |||||||||
Revolving credit facility, domestic operating subsidiary guarantors | subsidiary | 8 | 8 | 9 | ||||||
Revolving credit facility, minimum guarantor asset coverage ratio | 1.25 | 1.25 | |||||||
Revolving credit facility, available draw amount | $ 640,000,000 | $ 640,000,000 | |||||||
Repurchase of debt | $ 4,840,000,000 | ||||||||
Additional premium to purchase price | $ 98,000,000 | ||||||||
Senior unsecured notes, percent of purchase price to principal amount | 101.00% | ||||||||
Pledged assets | 13,700,000,000 | $ 13,700,000,000 | |||||||
Pledged assets, loans | 12,200,000,000 | 12,200,000,000 | |||||||
Pledged assets, operating lease assets | 1,200,000,000 | 1,200,000,000 | |||||||
Pledged assets, cash | 200,000,000 | 200,000,000 | |||||||
Pledged assets, investments | 100,000,000 | 100,000,000 | |||||||
FHLB advances, financing availability | 5,100,000,000 | 5,100,000,000 | |||||||
FHLB advances, unused and available | 2,500,000,000 | 2,500,000,000 | |||||||
Secured borrowings | $ 1,680,800,000 | $ 1,680,800,000 | $ 1,925,700,000 | ||||||
Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Revolving credit facility, minimum guarantor asset coverage ratio | 1 | 1 | |||||||
Minimum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Revolving credit facility, minimum guarantor asset coverage ratio | 1.5 | 1.5 | |||||||
Senior unsecured notes, percent of purchase price to principal amount | 98.00% | ||||||||
Weighted Average [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
FHLB advances, weighted average percentage rate | 1.45% | 1.45% | |||||||
Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Revolving credit facility, total commitment amount | $ 750,000,000 | $ 750,000,000 | $ 1,400,000,000 | $ 1,500,000,000 | |||||
Revolving Credit Facility [Member] | CIT Commercial Air Business [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Revolving credit facility, total commitment amount | $ 750,000,000 | ||||||||
Revolving Credit Facility [Member] | CIT Commercial Air Business [Member] | Discontinued Operations, Disposed of by Sale [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Revolving credit facility, total commitment amount | $ 1,400,000,000 | ||||||||
Minimum consolidated net worth covenant | $ 6,000,000,000 | ||||||||
Tier 1 Capital minimum ratio | 9.00% | ||||||||
Letters of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Revolving credit facility, available draw amount | 110,000,000 | 110,000,000 | |||||||
FHLB advances, utilized for issuance of letters of credit | 197,400,000 | 197,400,000 | |||||||
August 2017 - 4.250% [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Percent of principal amounts redeemed | 100.00% | ||||||||
Tender Offer [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repurchase of debt | $ 1,040,000,000 | ||||||||
Unamortized premium balance | 59,000,000 | ||||||||
Accrued interest | 9,000,000 | ||||||||
Tender Offer [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repurchase of debt | $ 950,000,000 | ||||||||
February 2019 - 5.500% [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repurchase of debt | $ 969,000,000 | ||||||||
Senior Unsecured Note, 6.00% Maturing in 2036 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount | $ 51,000,000 | $ 51,000,000 | |||||||
Rate (%) | 6.00% | 6.00% | |||||||
Carrying value | $ 39,000,000 | $ 39,000,000 | |||||||
Structured Financings [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Secured borrowings, weighted average percentage rate | 3.58% | 3.58% | |||||||
Structured Financings [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Secured borrowings, weighted average percentage rate | 5.74% | 5.74% | |||||||
Structured Financings [Member] | Minimum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Secured borrowings, weighted average percentage rate | 0.56% | 0.56% | |||||||
Senior Unsecured Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount | $ 4,531,000,000 | $ 4,531,000,000 | |||||||
Senior Unsecured Notes [Member] | August 2017 - 4.250% [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount | $ 1,725,800,000 | ||||||||
Rate (%) | 4.25% | ||||||||
Senior Unsecured Notes [Member] | March 2018 - 5.250% [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount | $ 1,465,000,000 | ||||||||
Rate (%) | 5.25% | ||||||||
Senior Unsecured Notes [Member] | April 2018 - 6.625% [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount | $ 695,000,000 | ||||||||
Rate (%) | 6.625% | ||||||||
Senior Unsecured Notes [Member] | May 2018 - 5.000% [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount | $ 955,900,000 | ||||||||
Rate (%) | 5.00% | ||||||||
Senior Unsecured Notes [Member] | February 2019 - 5.500% [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount | $ 781,000,000 | $ 781,000,000 | |||||||
Rate (%) | 5.50% | 5.50% | 5.50% | ||||||
Senior Unsecured Notes [Member] | May 2020 - 5.375% [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount | $ 750,000,000 | $ 750,000,000 | |||||||
Rate (%) | 5.375% | 5.375% | 5.375% | ||||||
Senior Unsecured Notes [Member] | August 2022 - 5.000% [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount | $ 1,250,000,000 | $ 1,250,000,000 | |||||||
Rate (%) | 5.00% | 5.00% | 5.00% | ||||||
Senior Unsecured Borrowings [Member] | Tender Offer [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Transaction costs and deferred cost acceleration on debt extinguishment | $ 164,800,000 | ||||||||
LIBOR [Member] | Revolving Credit Facility [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Revolving credit facility, applicable margin (percentage) | 2.00% | ||||||||
Base Rate [Member] | Revolving Credit Facility [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Revolving credit facility, applicable margin (percentage) | 1.00% | ||||||||
Onewest Bank [Member] | Variable Interest Entities [Member] | HMBS [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Secured borrowings | 149,400,000 | $ 149,400,000 | 160,200,000 | ||||||
Onewest Bank [Member] | Discontinued Operations [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Secured borrowings | $ 321,600,000 | $ 321,600,000 | $ 1,571,000,000 |
Borrowings (Schedule of Long-Te
Borrowings (Schedule of Long-Term Borrowings) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 8,621.4 | $ 14,935.5 |
Parent Company [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 4,545.1 | |
Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 4,076.3 | |
Senior Unsecured Borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 4,545.1 | 10,599 |
Senior Unsecured Borrowings [Member] | Parent Company [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 4,545.1 | |
Senior Unsecured Borrowings [Member] | Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 0 | |
Structured Financings [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 1,680.8 | 1,925.7 |
Structured Financings [Member] | Parent Company [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 0 | |
Structured Financings [Member] | Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 1,680.8 | |
FHLB Advances [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 2,395.5 | $ 2,410.8 |
FHLB Advances [Member] | Parent Company [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 0 | |
FHLB Advances [Member] | Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 2,395.5 |
Borrowings (Schedule of Senior
Borrowings (Schedule of Senior Unsecured Notes) (Details) - Senior Unsecured Notes [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Apr. 04, 2017 | |
Debt Instrument [Line Items] | ||
Par Value | $ 4,531,000,000 | |
Weighted Average Rate (%) | 4.90% | |
February 2019 - 5.500% [Member] | ||
Debt Instrument [Line Items] | ||
Rate (%) | 5.50% | 5.50% |
Date of Issuance | Feb. 1, 2012 | |
Par Value | $ 781,000,000 | |
February 2019 - 3.875% [Member] | ||
Debt Instrument [Line Items] | ||
Rate (%) | 3.875% | |
Date of Issuance | Feb. 1, 2014 | |
Par Value | $ 1,000,000,000 | |
May 2020 - 5.375% [Member] | ||
Debt Instrument [Line Items] | ||
Rate (%) | 5.375% | 5.375% |
Date of Issuance | May 1, 2012 | |
Par Value | $ 750,000,000 | |
August 2022 - 5.000% [Member] | ||
Debt Instrument [Line Items] | ||
Rate (%) | 5.00% | 5.00% |
Date of Issuance | Aug. 1, 2012 | |
Par Value | $ 1,250,000,000 | |
August 2023 - 5.000% [Member] | ||
Debt Instrument [Line Items] | ||
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 | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
FHLB Advances | $ 2,395.5 | $ 2,410.8 |
Pledged Assets | $ 6,048.9 | $ 6,389.7 |
Borrowings (Schedule of Structu
Borrowings (Schedule of Structured Financings and Pledged Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowing | $ 1,680.8 | $ 1,925.7 |
Pledged Assets | 4,037.6 | 4,148.3 |
TRS [Member] | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowing | 511.3 | |
Pledged Assets | 827.2 | |
Commercial Banking [Member] | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowing | 1,642.2 | 1,809.9 |
Pledged Assets | 3,999 | 3,935.7 |
Commercial Banking [Member] | Business Capital [Member] | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowing | 830.1 | 949.8 |
Pledged Assets | 2,704.4 | 2,608 |
Commercial Banking [Member] | Rail [Member] | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowing | 812.1 | 860.1 |
Pledged Assets | 1,294.6 | 1,327.5 |
Commercial Banking [Member] | Commercial Finance [Member] | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowing | 0 | 0 |
Pledged Assets | 0 | 0.2 |
Non-Strategic Portfolios [Member] | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Secured Borrowing | 38.6 | 115.8 |
Pledged Assets | $ 38.6 | $ 212.6 |
Borrowings (Assets and Liabilit
Borrowings (Assets and Liabilities in Unconsolidated VIEs) (Details) - Unconsolidated Variable Interest Entities (VIEs) [Member] - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Securities [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | $ 3,899 | $ 2,921.9 |
Maximum loss exposure | 3,899 | 2,921.9 |
Debt Securities [Member] | Agency Securities [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 3,186.7 | 2,152.9 |
Debt Securities [Member] | Non-agency Securities - Other Servicer [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 712.3 | 769 |
Equity Securities [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 14 | 11.4 |
Equity Securities [Member] | Tax Credit Equity Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 215.4 | 167.7 |
Partnership Investment [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 229.4 | 179.1 |
Total Liabilities | 100.2 | 62.3 |
Maximum loss exposure | 229.4 | 179.1 |
Partnership Investment [Member] | Commitments to Tax Credit Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Liabilities | $ 100.2 | $ 62.3 |
Derivative Financial Instrume76
Derivative Financial Instruments (Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($)subsidiaryfinancing_facility | |
Derivative [Line Items] | |||||
Notional amount of derivative | $ 14,412.7 | $ 14,412.7 | $ 13,128.8 | ||
Aggregate actual adjusted qualifying borrowing base outstanding | 459.2 | 459.2 | |||
Liability recorded based on Company's valuation | 12.6 | 12.6 | $ 11.3 | ||
Increase (decrease) of liability | 0.4 | $ (8.6) | 1.3 | $ (26.8) | |
TRS [Member] | |||||
Derivative [Line Items] | |||||
Number of derivative financing facilities | financing_facility | 2 | ||||
Number of wholly owned subsidiaries | subsidiary | 2 | ||||
Unutilized portion of facility accounted for as a derivative | 625 | 625 | $ 625 | ||
Notional amount of derivative | 165.8 | 165.8 | 587.5 | ||
Canadian TRS [Member] | |||||
Derivative [Line Items] | |||||
Maximum aggregate facility commitment amounts | $ 1,062.3 | $ 1,062.3 | $ 474.8 |
Derivative Financial Instrume77
Derivative Financial Instruments (Fair and Notional Values of Derivative Financial Instruments) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 14,412.7 | $ 13,128.8 |
Asset Fair Value | 79.4 | 111.6 |
Liability Fair Value | (115) | (68.8) |
TRS [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 165.8 | 587.5 |
Qualifying Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 952.5 | 817.9 |
Asset Fair Value | 0 | 16.9 |
Liability Fair Value | (42.8) | |
Qualifying Hedges [Member] | Net Investment Hedging [Member] | Foreign Currency Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 952.5 | 817.9 |
Asset Fair Value | 0 | 16.9 |
Liability Fair Value | (42.8) | |
Non-Qualifying Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 13,460.2 | 12,310.9 |
Asset Fair Value | 79.4 | 94.7 |
Liability Fair Value | (72.2) | (68.8) |
Non-Qualifying Hedges [Member] | Foreign Currency Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,425.3 | 1,329.8 |
Asset Fair Value | 16.6 | 30.2 |
Liability Fair Value | (27.5) | (6) |
Non-Qualifying Hedges [Member] | Interest Rate Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 6,335.7 | 5,309.2 |
Asset Fair Value | 61.6 | 63 |
Liability Fair Value | (31.2) | (50.1) |
Non-Qualifying Hedges [Member] | Interest Rate Option [Member] | Written options [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,732.7 | 2,626.5 |
Asset Fair Value | 0.1 | |
Liability Fair Value | (0.8) | (1) |
Non-Qualifying Hedges [Member] | Interest Rate Option [Member] | Purchased options [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,518.4 | 2,129.6 |
Asset Fair Value | 0.8 | 1 |
Liability Fair Value | (0.1) | |
Non-Qualifying Hedges [Member] | TRS [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 165.8 | 587.5 |
Liability Fair Value | (12.6) | (11.3) |
Non-Qualifying Hedges [Member] | Equity Warrants [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1 | 1 |
Asset Fair Value | 0.3 | 0.2 |
Non-Qualifying Hedges [Member] | Interest Rate Lock Commitments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 6.9 | 20.7 |
Asset Fair Value | 0.1 | 0.1 |
Liability Fair Value | (0.1) | |
Non-Qualifying Hedges [Member] | Forward Sale Commitments On Agency MBS [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 9 | 39 |
Asset Fair Value | 0.1 | |
Liability Fair Value | 0 | |
Non-Qualifying Hedges [Member] | Credit Derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 265.4 | 267.6 |
Liability Fair Value | $ (0.1) | $ (0.2) |
Derivative Financial Instrume78
Derivative Financial Instruments (Offsetting of Derivative Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Asset Fair Value | $ 79.4 | $ 111.6 |
Gross Amount Offset in the Consolidated Balance Sheet, Derivative assets | 0 | 0 |
Net Amount Presented in the Consolidated Balance Sheet, Derivative assets | 79.4 | 111.6 |
Derivative Financial Instruments, Derivative assets | (26.5) | (30.9) |
Cash Collateral Pledged/ (Received), Derivative assets | (3.5) | (48.7) |
Net Amount | 49.4 | $ 32 |
Variable margin balances | $ 4.1 |
Derivative Financial Instrume79
Derivative Financial Instruments (Offsetting of Derivative Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross Amount of Recognized Liabilities, Derivative liabilities | $ (115) | $ (68.8) |
Gross Amount Offset in the Consolidated Balance Sheet, Derivative liabilities | 0 | 0 |
Net Amount Presented in the Consolidated Balance Sheet, Derivative liabilities | (115) | (68.8) |
Derivative Financial Instruments, Derivative liabilities | 26.5 | 30.9 |
Cash Collateral Pledged/ (Received), Derivative liabilities | 55.6 | 5 |
Net Amount | (32.9) | $ (32.9) |
Variable margin balances | $ 20.4 |
Derivative Financial Instrume80
Derivative Financial Instruments (Derivative Instrument Gains and Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total derivatives-income statement impact | $ (20.6) | $ 30.6 | $ (26.3) | $ 13.3 |
Non-Qualifying Hedges [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total derivatives-income statement impact | (20.6) | 30.6 | (26.3) | 13.3 |
Non-Qualifying Hedges [Member] | Interest Rate Swaps [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total derivatives-income statement impact | 0.5 | 0 | 2.7 | (2.6) |
Non-Qualifying Hedges [Member] | Interest Rate Options [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total derivatives-income statement impact | 0.1 | 0 | 0.2 | 0.4 |
Non-Qualifying Hedges [Member] | Foreign Currency Forward Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total derivatives-income statement impact | (20.8) | 21.6 | (27.8) | (12.3) |
Non-Qualifying Hedges [Member] | Equity Warrants [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total derivatives-income statement impact | 0.2 | 0 | 0.1 | (0.3) |
Non-Qualifying Hedges [Member] | TRS [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total derivatives-income statement impact | (0.4) | 8.6 | (1.3) | 26.8 |
Non-Qualifying Hedges [Member] | Interest Rate Lock Commitments [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total derivatives-income statement impact | 0 | 0.1 | 0.1 | 0.1 |
Non-Qualifying Hedges [Member] | Forward Sale Commitments On Agency MBS [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total derivatives-income statement impact | (0.2) | 0 | (0.3) | 0 |
Non-Qualifying Hedges [Member] | Credit Derivatives [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total derivatives-income statement impact | $ 0 | $ 0.3 | $ 0 | $ 1.2 |
Derivative Financial Instrume81
Derivative Financial Instruments (Changes in AOCI Relating to Derivatives) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives - effective portion reclassified from AOCI to income | $ 6.5 | $ 0 | $ 13.4 | $ 1.8 |
Total income statement impact | 6.5 | 0 | 13.4 | 1.8 |
Derivatives - effective portion recorded in OCI | (32.8) | 5.7 | (41.7) | (32.3) |
Total change in OCI for period | (39.3) | 5.7 | (55.1) | (34.1) |
Qualifying Hedges [Member] | Foreign Currency Forward Contracts [Member] | Net Investment Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives - effective portion reclassified from AOCI to income | 6.5 | 0 | 13.4 | 1.8 |
Total income statement impact | 6.5 | 0 | 13.4 | 1.8 |
Derivatives - effective portion recorded in OCI | (32.8) | 5.7 | (41.7) | (32.3) |
Total change in OCI for period | $ (39.3) | $ 5.7 | $ (55.1) | $ (34.1) |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017USD ($)holdback | Dec. 31, 2016USD ($) | Jun. 30, 2016USD ($) | |||
Fair Value Disclosure [Line Items] | |||||
Borrower rate, max effective period | 90 days | ||||
Assets held for sale | $ 1,324,800,000 | [1] | $ 636,000,000 | [1] | $ 1,639,100,000 |
Fair value of loans, percentage | 101.70% | 100.60% | |||
Unpaid principal balance | $ 3,452,100,000 | $ 3,685,000,000 | |||
Impaired loans carrying amount | $ 198,200,000 | $ 188,200,000 | |||
Carrying amount of impaired loans percentage of unpaid principal balance | 82.00% | 77.00% | |||
Impaired loans unpaid principal balance with no specific allowance | $ 84,800,000 | $ 74,700,000 | |||
Impaired loans carrying value with no specific allowance | 74,700,000 | 55,500,000 | |||
Level 2 [Member] | |||||
Fair Value Disclosure [Line Items] | |||||
Assets held for sale | 7,000,000 | ||||
Face amount | 3,000,000,000 | 3,300,000,000 | |||
Unsecured borrowings | 4,600,000,000 | 10,600,000 | |||
Level 3 [Member] | |||||
Fair Value Disclosure [Line Items] | |||||
Face amount | 1,000,000,000 | 1,100,000,000 | |||
Minimum [Member] | |||||
Fair Value Disclosure [Line Items] | |||||
Threshold at which impaired finance receivables that are placed on non-accrual status are subject to individual review | 500,000 | ||||
Onewest Bank [Member] | |||||
Fair Value Disclosure [Line Items] | |||||
Probable amount of holdback to be paid | 62,400,000 | ||||
Contingent liabilities | (46,100,000) | ||||
Onewest Bank [Member] | Minimum [Member] | |||||
Fair Value Disclosure [Line Items] | |||||
Range of potential holdback to be paid | 0 | ||||
Onewest Bank [Member] | Maximum [Member] | |||||
Fair Value Disclosure [Line Items] | |||||
Range of potential holdback to be paid | 116,000,000 | ||||
Impaired Loans [Member] | |||||
Fair Value Disclosure [Line Items] | |||||
Unpaid principal balance | 241,800,000 | 244,300,000 | |||
Estimated Fair Value [Member] | |||||
Fair Value Disclosure [Line Items] | |||||
Fair value of loans | 26,649,200,000 | 26,846,700,000 | |||
Estimated Fair Value [Member] | Level 2 [Member] | |||||
Fair Value Disclosure [Line Items] | |||||
Fair value of loans | 392,200,000 | 390,300,000 | |||
Estimated Fair Value [Member] | Level 3 [Member] | |||||
Fair Value Disclosure [Line Items] | |||||
Non-marketable securities | 256,000,000 | 256,400,000 | |||
OREO estimated fair value | 18,000,000 | ||||
Fair value of loans | $ 26,257,000,000 | $ 26,456,400,000 | |||
Other Real Estate Owned [Member] | Minimum [Member] | Level 3 [Member] | |||||
Fair Value Disclosure [Line Items] | |||||
Inputs used to estimate cost to sell | 5.30% | ||||
Other Real Estate Owned [Member] | Maximum [Member] | Level 3 [Member] | |||||
Fair Value Disclosure [Line Items] | |||||
Inputs used to estimate cost to sell | 9.40% | ||||
Other Real Estate Owned [Member] | Weighted Average [Member] | Level 3 [Member] | |||||
Fair Value Disclosure [Line Items] | |||||
Inputs used to estimate cost to sell | 5.70% | ||||
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] | Onewest Bank [Member] | |||||
Fair Value Disclosure [Line Items] | |||||
Number of consideration holdback liabilities | holdback | 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 | ||||
[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.Assets Cash and interest bearing deposits, restricted$93.2 $99.9Total loans, net of allowance for loan losses181.4 300.5Operating lease equipment, net764.4 775.8Assets of discontinued operations— 2,321.7Total Assets$1,039.0 $3,497.9Liabilities Beneficial interests issued by consolidated VIEs (classified as long-term borrowings)$647.4 $770.0Liabilities of discontinued operations— 1,204.6Total Liabilities$647.4 $1,974.6 |
Fair Value (Assets and Liabilit
Fair Value (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities AFS | $ 4,765 | |
Securities carried at fair value with changes recorded in net income | 255.6 | $ 283.5 |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities AFS | 4,765 | 3,674.1 |
Securities carried at fair value with changes recorded in net income | 255.6 | 283.5 |
Equity Securities AFS | 34.5 | 34.1 |
Total Assets | 5,134.5 | 4,103.3 |
Consideration holdback liability | (46.1) | (47.2) |
FDIC True-up Liability | (64.3) | (61.9) |
Total Liabilities | (225.4) | (177.9) |
Recurring [Member] | Non-Qualifying Hedges [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets at fair value | 79.4 | 94.7 |
Derivative liabilities at fair value | (72.2) | (68.8) |
Recurring [Member] | Qualifying Hedges [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets at fair value | 16.9 | |
Derivative liabilities at fair value | (42.8) | |
Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities AFS | 349.3 | 200.1 |
Equity Securities AFS | 0.2 | 0.3 |
Total Assets | 349.5 | 200.4 |
Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities AFS | 3,958.9 | 2,988.5 |
Equity Securities AFS | 34.3 | 33.8 |
Total Assets | 4,072.5 | 3,133.9 |
Total Liabilities | (102.3) | (57.3) |
Recurring [Member] | Level 2 [Member] | Non-Qualifying Hedges [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets at fair value | 79.3 | 94.7 |
Derivative liabilities at fair value | (59.5) | (57.3) |
Recurring [Member] | Level 2 [Member] | Qualifying Hedges [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets at fair value | 16.9 | |
Derivative liabilities at fair value | (42.8) | |
Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities AFS | 485.5 | |
Securities carried at fair value with changes recorded in net income | 283.5 | |
Total Assets | 712.5 | 769 |
Consideration holdback liability | (47.2) | |
FDIC True-up Liability | (64.3) | (61.9) |
Total Liabilities | (123.1) | (120.6) |
Recurring [Member] | Level 3 [Member] | Non-Qualifying Hedges [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets at fair value | 0.1 | |
Derivative liabilities at fair value | $ (12.7) | $ (11.5) |
Fair Value (Quantitative Inform
Fair Value (Quantitative Information about Level 3 Fair Value Measurements-Recurring) (Details) - Level 3 [Member] - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Estimated fair value - assets | $ 712.5 | $ 769 |
Estimated fair value liabilities | (123.1) | (120.6) |
FDIC True-Up Liability [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Estimated fair value liabilities | $ (64.3) | $ (61.9) |
Valuation Techniques | Discounted cash flow | |
Fair Value Inputs, Discount Rate (percentage) | 2.50% | 3.20% |
Consideration Holdback Liability [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Estimated fair value liabilities | $ (46.1) | $ (47.2) |
Valuation Techniques | Discounted cash flow | |
Derivative Liabilities - Non Qualifying [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Estimated fair value liabilities | $ (12.7) | (11.5) |
Valuation Techniques | Market Comparables(1) | |
Available-For-Sale Securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Estimated fair value - assets | $ 456.8 | 485.5 |
Valuation Techniques | Discounted cash flow | |
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 | $ 255.6 | $ 283.5 |
Valuation Techniques | Discounted cash flow | |
Derivative Assets - Non Qualifying [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Estimated fair value - assets | $ 0.1 | |
Valuation Techniques | Internal valuation model | |
Minimum [Member] | Consideration Holdback Liability [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Inputs, Discount Rate (percentage) | 1.20% | 1.30% |
Fair value measurements, Payment Probability (percentage) | 28.00% | 0.00% |
Minimum [Member] | Available-For-Sale Securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Inputs, Discount Rate (percentage) | 0.00% | 0.00% |
Fair Value Inputs, Prepayment Rate (percentage) | 3.60% | 3.20% |
Fair Value Inputs, Probability of Default (percentage) | 0.00% | 0.00% |
Fair Value Inputs, Loss Severity (percentage) | 0.60% | 1.00% |
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 (percentage) | 1.50% | 0.00% |
Fair Value Inputs, Prepayment Rate (percentage) | 5.30% | 6.10% |
Fair Value Inputs, Probability of Default (percentage) | 3.00% | 1.90% |
Fair Value Inputs, Loss Severity (percentage) | 13.10% | 22.20% |
Minimum [Member] | Derivative Assets - Non Qualifying [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Inputs, Borrower Rate (percentage) | 3.40% | |
Maximum [Member] | Consideration Holdback Liability [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Inputs, Discount Rate (percentage) | 4.20% | 4.00% |
Fair value measurements, Payment Probability (percentage) | 100.00% | 100.00% |
Maximum [Member] | Available-For-Sale Securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Inputs, Discount Rate (percentage) | 52.90% | 96.40% |
Fair Value Inputs, Prepayment Rate (percentage) | 22.70% | 21.20% |
Fair Value Inputs, Probability of Default (percentage) | 9.30% | 9.00% |
Fair Value Inputs, Loss Severity (percentage) | 76.40% | 79.80% |
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 (percentage) | 47.70% | 34.60% |
Fair Value Inputs, Prepayment Rate (percentage) | 18.80% | 16.20% |
Fair Value Inputs, Probability of Default (percentage) | 8.80% | 8.10% |
Fair Value Inputs, Loss Severity (percentage) | 43.80% | 44.70% |
Maximum [Member] | Derivative Assets - Non Qualifying [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Inputs, Borrower Rate (percentage) | 5.00% | |
Weighted Average [Member] | FDIC True-Up Liability [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Inputs, Discount Rate (percentage) | 2.50% | 3.20% |
Weighted Average [Member] | Consideration Holdback Liability [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Inputs, Discount Rate (percentage) | 1.80% | 2.10% |
Fair value measurements, Payment Probability (percentage) | 40.90% | 40.90% |
Weighted Average [Member] | Available-For-Sale Securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Inputs, Discount Rate (percentage) | 4.80% | 5.50% |
Fair Value Inputs, Prepayment Rate (percentage) | 9.00% | 8.80% |
Fair Value Inputs, Probability of Default (percentage) | 3.60% | 3.90% |
Fair Value Inputs, Loss Severity (percentage) | 38.00% | 36.30% |
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 (percentage) | 4.90% | 5.60% |
Fair Value Inputs, Prepayment Rate (percentage) | 11.90% | 11.90% |
Fair Value Inputs, Probability of Default (percentage) | 4.60% | 4.60% |
Fair Value Inputs, Loss Severity (percentage) | 25.90% | 25.80% |
Weighted Average [Member] | Derivative Assets - Non Qualifying [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Inputs, Borrower Rate (percentage) | 4.10% |
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 | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Liabilities - Non Qualifying [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ (11.5) | $ (55.5) |
Included in earnings, liability | 1.2 | (26.8) |
Included in comprehensive income, liability | 0 | 0 |
Impairment, liability | 0 | 0 |
Settlements, liability | 0 | 0 |
Ending Balance | (12.7) | (28.7) |
FDIC True-Up Liability [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | (61.9) | (56.9) |
Included in earnings, liability | 2.4 | 2.8 |
Included in comprehensive income, liability | 0 | 0 |
Impairment, liability | 0 | 0 |
Settlements, liability | 0 | 0 |
Ending Balance | (64.3) | (59.7) |
Consideration Holdback Liability [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | (47.2) | (60.8) |
Included in earnings, liability | (1.1) | 0.7 |
Included in comprehensive income, liability | 0 | 0 |
Impairment, liability | 0 | 0 |
Settlements, liability | 0 | 14.3 |
Ending Balance | (46.1) | (47.2) |
Available-For-Sale Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 485.5 | 567.1 |
Included in earnings, assets | (2.9) | (3.1) |
Included in comprehensive income, assets | 14 | 12.5 |
Impairment, assets | (0.1) | (2.2) |
Settlements, assets | (39.7) | (50.9) |
Ending Balance | 456.8 | 523.4 |
Securities Carried At Fair Value With Changed Recorded In Net Income [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 283.5 | 339.7 |
Included in earnings, assets | 8 | 5.5 |
Included in comprehensive income, assets | 0 | 0 |
Impairment, assets | 0 | 0 |
Settlements, assets | (35.9) | (32.6) |
Ending Balance | 255.6 | 312.6 |
FDIC Receivable [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 0.6 | 54.8 |
Included in earnings, assets | 0.7 | 5 |
Included in comprehensive income, assets | 0 | 0 |
Impairment, assets | 0 | 0 |
Settlements, assets | 0 | (6.6) |
Ending Balance | 1.3 | 53.2 |
Derivative Assets - Non Qualifying [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 0 | 0 |
Included in earnings, assets | 0.1 | 0.2 |
Included in comprehensive income, assets | 0 | 0 |
Impairment, assets | 0 | 0 |
Settlements, assets | 0 | 0 |
Ending Balance | $ 0.1 | $ 0.2 |
Fair Value (Carrying Value of A
Fair Value (Carrying Value of Assets Measured at Fair Value on a Non-Recurring Basis) (Details) - Non-Recurring [Member] - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill | $ 51.8 | |
Assets held for sale | $ 123.6 | 201.6 |
Other real estate owned | 17.7 | 22.5 |
Impaired loans | 100.7 | 151.9 |
Total | 242 | 427.8 |
Goodwill, Total (Losses) | (354.2) | |
Assets held for sale, Total (Losses) | (1.9) | (14.7) |
Other real estate owned, Total (Losses) | (1.3) | (3.2) |
Impaired loans, Total (Losses) | (23.5) | (26.8) |
Total (Losses) | (26.7) | (398.9) |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill | 0 | |
Assets held for sale | 0 | 0 |
Other real estate owned | 0 | 0 |
Impaired loans | 0 | 0 |
Total | 0 | 0 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill | 0 | |
Assets held for sale | 0 | 0 |
Other real estate owned | 0 | 0 |
Impaired loans | 0 | 0 |
Total | 0 | 0 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill | 51.8 | |
Assets held for sale | 123.6 | 201.6 |
Other real estate owned | 17.7 | 22.5 |
Impaired loans | 100.7 | 151.9 |
Total | $ 242 | $ 427.8 |
Fair Value (Carrying and Estima
Fair Value (Carrying and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and interest bearing deposits | [1] | $ 4,739 | $ 5,608.5 | |
Credit balances of factoring clients | (1,405.3) | (1,292) | $ (1,215.2) | |
Available-for-sale debt securities | 4,765 | |||
Debt securities carried at fair value with changes recorded in net income | 255.6 | 283.5 | ||
Carrying Value [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and interest bearing deposits | 5,337.9 | 6,430.6 | ||
Assets held for sale (excluding leases) | 170.8 | 428.4 | ||
Loans (excluding leases) | 26,211.1 | 26,683 | ||
Investment securities | 5,530 | 4,491.1 | ||
Indemnification assets | 179.5 | 233.4 | ||
Other assets subject to fair value disclosure and unsecured counterparty receivables | 597.2 | 712.2 | ||
Deposits | (30,942.9) | (32,323.2) | ||
Borrowings | (8,700.5) | (15,097.8) | ||
Credit balances of factoring clients | (1,405.3) | (1,292) | ||
Other liabilities subject to fair value disclosure | (682.5) | (1,003.6) | ||
Carrying Value [Member] | Non-Qualifying Hedges [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative assets at fair value | 79.4 | 94.7 | ||
Derivative liabilities at fair value | (72.2) | (68.8) | ||
Carrying Value [Member] | Qualifying Hedges [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative assets at fair value | 16.9 | |||
Derivative liabilities at fair value | (42.8) | |||
Estimated Fair Value [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and interest bearing deposits | 5,337.9 | 6,430.6 | ||
Assets held for sale (excluding leases) | 171.2 | 439.6 | ||
Loans (excluding leases) | 26,649.2 | 26,846.7 | ||
Investment securities | 5,535 | 4,494.2 | ||
Indemnification assets | 136 | 201 | ||
Other assets subject to fair value disclosure and unsecured counterparty receivables | 597.2 | 712.2 | ||
Deposits | (31,072.7) | (32,490.9) | ||
Borrowings | (9,037.3) | (15,562.7) | ||
Credit balances of factoring clients | (1,405.3) | (1,292) | ||
Other liabilities subject to fair value disclosure | (682.5) | (1,003.6) | ||
Agency claimed indemnification assets | 28.9 | 108 | ||
Estimated Fair Value [Member] | Non-Qualifying Hedges [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative assets at fair value | 79.4 | 94.7 | ||
Derivative liabilities at fair value | (72.2) | (68.8) | ||
Estimated Fair Value [Member] | Qualifying Hedges [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative assets at fair value | 16.9 | |||
Derivative liabilities at fair value | (42.8) | |||
Level 1 [Member] | Estimated Fair Value [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and interest bearing deposits | 5,337.9 | 6,430.6 | ||
Investment securities | 349.5 | 200.4 | ||
Level 2 [Member] | Estimated Fair Value [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Assets held for sale (excluding leases) | 7.4 | 175 | ||
Loans (excluding leases) | 392.2 | 390.3 | ||
Investment securities | 4,145.9 | 3,199.6 | ||
Borrowings | (7,982) | (14,457.8) | ||
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 | 79.3 | 94.7 | ||
Derivative liabilities at fair value | (59.5) | (57.3) | ||
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 | 16.9 | |||
Derivative liabilities at fair value | (42.8) | |||
Level 3 [Member] | Estimated Fair Value [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Assets held for sale (excluding leases) | 163.8 | 264.6 | ||
Loans (excluding leases) | 26,257 | 26,456.4 | ||
Investment securities | 1,039.6 | 1,094.2 | ||
Indemnification assets | 136 | 201 | ||
Other assets subject to fair value disclosure and unsecured counterparty receivables | 597.2 | 712.2 | ||
Deposits | (31,072.7) | (32,490.9) | ||
Borrowings | (1,055.3) | (1,104.9) | ||
Credit balances of factoring clients | (1,405.3) | (1,292) | ||
Other liabilities subject to fair value disclosure | (682.5) | (1,003.6) | ||
Available-for-sale debt securities | 456.8 | 485.5 | ||
Debt securities carried at fair value with changes recorded in net income | 255.6 | 283.5 | ||
Non-marketable securities | 256 | 256.4 | ||
Held-to-maturity securities | 71 | 68.8 | ||
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 | 0.1 | |||
Derivative liabilities at fair value | $ (12.7) | $ (11.5) | ||
[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.Assets Cash and interest bearing deposits, restricted$93.2 $99.9Total loans, net of allowance for loan losses181.4 300.5Operating lease equipment, net764.4 775.8Assets of discontinued operations— 2,321.7Total Assets$1,039.0 $3,497.9Liabilities Beneficial interests issued by consolidated VIEs (classified as long-term borrowings)$647.4 $770.0Liabilities of discontinued operations— 1,204.6Total Liabilities$647.4 $1,974.6 |
Stockholder's Equity (Schedule
Stockholder's Equity (Schedule of Common Stock Activity) (Details) | 6 Months Ended |
Jun. 30, 2017shares | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Common Stock – December 31, 2016 (in shares) | 202,087,672 |
Common Stock – December 31, 2016, Issued (in shares) | 206,182,213 |
Restricted stock issued (in shares) | 1,127,202 |
Repurchase of common stock (in shares) | (67,363,405) |
Shares held to cover taxes on vesting restricted shares and other (in shares) | (460,148) |
Employee stock purchase plan participation (in shares) | 27,274 |
Common Stock – June 30, 2017, Issued (in shares) | 207,336,689 |
Common Stock – June 30, 2017 (in shares) | 135,418,595 |
Issued [Member] | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Common Stock – December 31, 2016, Issued (in shares) | 206,182,213 |
Restricted stock issued (in shares) | 1,127,202 |
Employee stock purchase plan participation (in shares) | 27,274 |
Common Stock – June 30, 2017, Issued (in shares) | 207,336,689 |
Less Treasury [Member] | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Common Stock – December 31, 2016 (in shares) | (4,094,541) |
Repurchase of common stock (in shares) | (67,363,405) |
Shares held to cover taxes on vesting restricted shares and other (in shares) | (460,148) |
Common Stock – June 30, 2017 (in shares) | (71,918,094) |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Common shares repurchases | $ 3,306 | |||
Foreign currency translation reclassification adjustments | $ 16.7 | $ 0 | 26.2 | $ 4.7 |
Foreign currency translation reclassification adjustments, tax | 12.7 | (0.9) | 17.1 | 14.7 |
Changes in benefit plans net gain/ (loss) and prior service (cost)/ credit reclassification adjustments impacting net income | 0.6 | 0.4 | 0.6 | 1.4 |
Changes in income taxes associated with changes in benefit plans net gain/ (loss) and prior service (cost)/ credit | 0 | 0 | (0.6) | 0 |
Reclassification adjustments impacting net income for unrealized gains (losses on available for sale securities | (0.2) | 0 | (0.2) | 0 |
Change in income taxes associated with net unrealized gains on available for sale securities | (2.6) | $ (7.4) | (4.2) | $ (9) |
Commercial Air [Member] | Discontinued Operations, Disposed of by Sale [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Reclassification adjustment from sale of the Commercial Air business | 16.7 | |||
Accelerated Share Repurchase Program, Final Settlement in Third Quarter of 2017 [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Common shares repurchases | $ 512 | |||
Number of shares repurchased | 9,250,000 | |||
Common Share Repurchases [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Common shares repurchases | $ 3,300 | |||
Equity Tender Offer [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Number of shares repurchased | 57,300,000 | |||
Purchase price per share | $ 48 | |||
Open Market Repurchases [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Number of shares repurchased | 818,071 | |||
Purchase price per share | $ 46.45 |
Stockholders' Equity (Component
Stockholders' Equity (Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Gross Unrealized | $ (81.8) | $ (121.2) |
Income Taxes | (6.6) | (18.9) |
Net Unrealized | (88.4) | (140.1) |
Foreign currency translation adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Gross Unrealized | (2.2) | (28.6) |
Income Taxes | (15.7) | (32.8) |
Net Unrealized | (17.9) | (61.4) |
Changes in benefit plan net gain (loss) and prior service (cost) credit [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Gross Unrealized | (68.5) | (70.6) |
Income Taxes | 4.7 | 5.3 |
Net Unrealized | (63.8) | (65.3) |
Unrealized net gains (losses) on available for sale securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Gross Unrealized | (11.1) | (22) |
Income Taxes | 4.4 | 8.6 |
Net Unrealized | $ (6.7) | $ (13.4) |
Stockholders' Equity (Changes i
Stockholders' Equity (Changes in Accumulated Other Comprehensive Loss by Component) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 10,003.1 | $ 10,945.2 | ||
Amounts reclassified from AOCI | $ 17.1 | $ 0.4 | 26.6 | 6.1 |
Other comprehensive income, net of tax | 51.7 | 34.5 | ||
Foreign currency translation reclassification adjustments, tax | (12.7) | 0.9 | (17.1) | (14.7) |
Ending balance | 7,351.5 | 11,093.3 | 7,351.5 | 11,093.3 |
Total AOCI [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (140.1) | (142.1) | ||
AOCI activity before reclassification | 25.1 | 28.4 | ||
Amounts reclassified from AOCI | 26.6 | 6.1 | ||
Other comprehensive income, net of tax | 51.7 | 34.5 | ||
Ending balance | (88.4) | (107.6) | (88.4) | (107.6) |
Foreign currency translation adjustments [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (61.4) | (65.7) | ||
AOCI activity before reclassification | 17.3 | 13.9 | ||
Amounts reclassified from AOCI | 26.2 | 4.7 | ||
Other comprehensive income, net of tax | 43.5 | 18.6 | ||
Ending balance | (17.9) | (47.1) | (17.9) | (47.1) |
Changes in benefit plan net gain (loss) and prior service (cost) credit [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (65.3) | (69.3) | ||
AOCI activity before reclassification | 0.9 | (0.2) | ||
Amounts reclassified from AOCI | 0.6 | 1.4 | ||
Other comprehensive income, net of tax | 1.5 | 1.2 | ||
Ending balance | (63.8) | (68.1) | (63.8) | (68.1) |
Unrealized net gains (losses) on available for sale securities [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (13.4) | (7.1) | ||
AOCI activity before reclassification | 6.9 | 14.7 | ||
Amounts reclassified from AOCI | (0.2) | |||
Other comprehensive income, net of tax | 6.7 | 14.7 | ||
Ending balance | $ (6.7) | $ 7.6 | $ (6.7) | $ 7.6 |
Stockholders' Equity (Reclassif
Stockholders' Equity (Reclassifications out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Gross Amount | $ 16.4 | $ 0.5 | $ 24.5 | $ 5.2 |
Tax | 0.7 | (0.1) | 2.1 | 0.9 |
Net Amount | 17.1 | 0.4 | 26.6 | 6.1 |
Foreign currency translation adjustments losses [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net Amount | 26.2 | 4.7 | ||
Foreign currency translation adjustments losses [Member] | Gain on Sale, Discontinued Operations [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Gross Amount | 16 | 0 | ||
Tax | 0.7 | 0 | ||
Net Amount | 16.7 | 0 | ||
Foreign currency translation adjustments losses [Member] | Other Income [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Gross Amount | 24.1 | 3.6 | ||
Tax | 2.1 | 1.1 | ||
Net Amount | 26.2 | 4.7 | ||
Changes in benefit plan net gain (loss) and prior service (cost) credit [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net Amount | 0.6 | 1.4 | ||
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 | 0.6 | 0.5 | 0.6 | 1.6 |
Tax | 0 | (0.1) | 0 | (0.2) |
Net Amount | 0.6 | 0.4 | 0.6 | 1.4 |
Unrealized net gains on available for sale securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net Amount | (0.2) | |||
Unrealized net gains on available for sale securities [Member] | Other Income [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Gross Amount | (0.2) | 0 | (0.2) | 0 |
Tax | 0 | 0 | 0 | 0 |
Net Amount | $ (0.2) | $ 0 | $ (0.2) | $ 0 |
Regulatory Capital (Tier 1 Capi
Regulatory Capital (Tier 1 Capital and Total Capital Components) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
CIT [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common Equity Tier 1 Capital | $ 6,319.5 | $ 9,058.9 |
Tier 1 Capital | 6,622.1 | 9,058.9 |
Total Capital | 7,097 | 9,535.2 |
Risk-weighted assets | $ 43,392.7 | $ 64,586.3 |
Common Equity Tier 1 Capital Ratio, Actual | 14.60% | 14.00% |
Effective minimum ratios under Basel III guidelines | 5.75% | 5.125% |
Tier 1 Capital (to risk-weighted assets), Actual | 15.30% | 14.00% |
Effective minimum ratios under Basel III guidelines | 7.25% | 6.625% |
Total Capital Ratio, Actual | 16.40% | 14.80% |
Effective minimum ratios under Basel III guidelines | 9.25% | 8.625% |
Tier 1 Leverage Ratio, Actual | 12.10% | 13.90% |
Required minimum ratio for capital adequacy purposes | 4.00% | 4.00% |
CIT Bank, N.A. [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common Equity Tier 1 Capital | $ 4,804.8 | $ 4,623.2 |
Tier 1 Capital | 4,804.8 | 4,623.2 |
Total Capital | 5,228.8 | 5,053.4 |
Risk-weighted assets | $ 33,904.7 | $ 34,410.3 |
Common Equity Tier 1 Capital Ratio, Actual | 14.20% | 13.40% |
Effective minimum ratios under Basel III guidelines | 5.75% | 5.125% |
Tier 1 Capital (to risk-weighted assets), Actual | 14.20% | 13.40% |
Effective minimum ratios under Basel III guidelines | 7.25% | 6.625% |
Total Capital Ratio, Actual | 15.40% | 14.70% |
Effective minimum ratios under Basel III guidelines | 9.25% | 8.625% |
Tier 1 Leverage Ratio, Actual | 10.50% | 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 | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | |||||
Effective income tax rate percentage | (343.00%) | 56.00% | 17.00% | 51.00% | |
Net discrete tax benefit | $ (93.4) | $ (82.1) | $ (7.4) | ||
Net current tax benefit recognized for resolution of uncertain tax position taken in prior year income tax returns | 19.3 | ||||
Deferred tax benefit on debt extinguishment costs | 65.2 | ||||
Miscellaneous other tax (benefit) expense items | $ 3.6 | (4.6) | 6.5 | ||
Favorable reduction in certain tax reserves | $ 13.9 | ||||
Liability for uncertain tax positions | 15.1 | 15.1 | $ 36.4 | ||
Net reduction | 21.3 | ||||
Accrual for interest and penalties | 8 | 8 | $ 11.7 | ||
NACCO Subsidiaries [Member] | Assets Held-For-Sale (AHFS) [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Deferred tax benefit for disposition of investments | 6.9 | ||||
CIT Commercial Air Business [Member] | Discontinued Operations, Disposed of by Sale [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Deferred tax expense related to restructuring of legal entities in preparation for Commercial Air sale | 13.9 | ||||
Net reduction | 4.9 | ||||
Maximum [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Potential decrease to tax benefits | 5 | 5 | |||
Foreign Tax Authority [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Deferred tax assets, valuation allowance | 35 | 35 | |||
U.S. State [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Deferred tax assets, valuation allowance | 240 | $ 240 | |||
Net reduction related to decrease from favorable tax actions | $ 15.7 |
Commitments (Summary of Commitm
Commitments (Summary of Commitments) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Commitments and Contingencies Disclosure [Abstract] | ||
Financing assets - Due to Expire Within One Year | $ 1,793.8 | |
Financing assets - Due to Expire After One Year | 4,811.8 | |
Financing assets - Total Outstanding | 6,605.6 | $ 6,008.1 |
Standby letters of credit - Due to Expire Within One Year | 55.1 | |
Standby letters of credit - Due to Expire After One Year | 191 | |
Standby letters of credit - Total Outstanding | 246.1 | 232.2 |
Other letters of credit - Due to Expire Within One Year | 26.7 | |
Other letters of credit - Total Outstanding | 26.7 | 14 |
Deferred purchase credit protection agreements - Due to Expire Within One Year | 1,494.1 | |
Deferred purchase credit protection agreements - Total Outstanding | 1,494.1 | 2,060.5 |
Guarantees, acceptances and other recourse obligations - Due to Expire Within One Year | 1.1 | |
Guarantees, acceptances and other recourse obligations - Total Outstanding | 1.1 | 1.6 |
Aerospace purchase commitments - Due to Expire Within One Year | 0 | |
Aerospace purchase commitments - Due to Expire After One Year | 0 | |
Aerospace purchase commitments - Total Outstanding | 0 | 8,683.5 |
Rail and other purchase commitments - Due to Expire Within One Year | 236.1 | |
Rail and other purchase commitments - Due to Expire After One Year | 33.2 | |
Rail and other purchase commitments - Total Outstanding | $ 269.3 | $ 300.7 |
Commitments (Narrative) (Detail
Commitments (Narrative) (Details) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017USD ($)railcar | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Commitments [Line Items] | |||
Financing commitments on which criteria for funding have not been completed | $ 1,300 | $ 572 | |
Financing commitments to Trade Finance clients that are cancelable only after a notice period, amount | 435 | 335 | |
Additional funding commitments | 1,600 | 1,700 | |
Other liabilities | 1,567.9 | 1,897.6 | |
Commitments and investments that qualify for community reinvestment tax credit | 100 | 62 | |
Deferred Purchase Agreements [Member] | |||
Commitments [Line Items] | |||
DPA credit protection provided to clients | 1,398 | 1,962 | |
DPA credit line agreements net of Deferred Purchase Agreement credit protection | 96 | 99 | |
Other liabilities | $ 9.5 | 6.1 | |
Contractual Commitments [Member] | |||
Commitments [Line Items] | |||
Railcars | railcar | 2,200 | ||
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] | Maximum [Member] | |||
Commitments [Line Items] | |||
Amount of indemnification for losses by FDIC | $ 200 | ||
Onewest Bank [Member] | Minimum [Member] | |||
Commitments [Line Items] | |||
Amount FDIC agreed to fund any other draws | 200 | ||
Financial Freedom [Member] | Discontinued Operations [Member] | |||
Commitments [Line Items] | |||
Financing commitments | 38 | $ 42 | |
Reverse Mortgages [Member] | |||
Commitments [Line Items] | |||
FDIC required funding amount of reverse mortgages | $ 62 | $ 55 |
Contingencies (Narrative) (Deta
Contingencies (Narrative) (Details) $ in Millions | May 16, 2017USD ($) | Jun. 30, 2017USD ($)employeelabor_lawsuit | Dec. 31, 2014USD ($) | Feb. 28, 2017USD ($) |
Maximum [Member] | ||||
Contingencies [Line Items] | ||||
Amount of losses in excess of established reserves and insurance related to those matters | $ 95 | |||
Indemnification Agreement [Member] | Ocwen Loan Servicing Llc [Member] | ||||
Contingencies [Line Items] | ||||
Indemnification obligation | 56 | |||
Indemnification Agreement [Member] | Ocwen Loan Servicing Llc [Member] | Maximum [Member] | ||||
Contingencies [Line Items] | ||||
Aggregate amount of claims | $ 150 | |||
Indemnification obligation | $ 150 | |||
Brazilian Indemnification Claims [Member] | Unasserted Claim [Member] | Pending Litigation [Member] | ||||
Contingencies [Line Items] | ||||
Number of labor lawsuits | labor_lawsuit | 30 | |||
Number of current employees | employee | 35 | |||
Number of former employees | employee | 10 | |||
Period employee/ independent contractor can recover damages for employment related claims | 5 years | |||
HUD OIG Investigation [Member] | Unfavorable Regulatory Action [Member] | Settled Litigation [Member] | ||||
Contingencies [Line Items] | ||||
Amount of settlement | $ 89 | |||
Mortgage Servicing Consent Orders [Member] | Unfavorable Regulatory Action [Member] | Pending Litigation [Member] | Maximum [Member] | ||||
Contingencies [Line Items] | ||||
Amount of settlement | $ 12.7 |
Certain Relationships and Rel98
Certain Relationships and Related Transactions (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
Other assets | $ 1,149.2 | $ 1,240.4 |
Strategic Credit Partners Holdings LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Loans sold in joint venture | $ 235 | |
Equity interest percentage | 10.00% | |
Equity investment | $ 7.4 | 5.4 |
Investments In Non-Consolidated Entities [Member] | ||
Related Party Transaction [Line Items] | ||
Other assets | $ 266 | $ 220 |
Business Segment Information (S
Business Segment Information (Segment Pre-Tax Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | ||||
Segment Pre-tax Income (Loss) | ||||||||
Interest income | $ 478.2 | $ 478.7 | $ 933.9 | $ 961.6 | ||||
Interest (expense) benefit | (209.2) | (191.6) | (372.3) | (386.6) | ||||
Provision for credit losses | (4.4) | (23.3) | (54.1) | (112.8) | ||||
Rental income on operating leases | 251.2 | 261 | 502.5 | 525.1 | ||||
Other non-interest income | 84.6 | 99.8 | 163.7 | 184.6 | ||||
Depreciation on operating lease equipment | (77.4) | (63.1) | (150.9) | (124.4) | ||||
Maintenance and other operating lease expenses | (53.3) | (50.6) | (107.1) | (99.5) | ||||
Operating expenses / loss on debt extinguishment and deposit redemption | (460.4) | (311.7) | (772) | (643.4) | ||||
Income from continuing operations before benefit (provision) for income taxes | 9.3 | 199.2 | 143.7 | 304.6 | ||||
Select Period End Balances | ||||||||
Loans | 29,031.7 | 30,093.8 | 29,031.7 | 30,093.8 | $ 29,535.9 | |||
Credit balances of factoring clients | 1,405.3 | 1,215.2 | 1,405.3 | 1,215.2 | 1,292 | |||
Assets held for sale | 1,324.8 | [1] | 1,639.1 | 1,324.8 | [1] | 1,639.1 | 636 | [1] |
Operating lease equipment, net | 6,736 | [1] | 7,179.1 | 6,736 | [1] | 7,179.1 | $ 7,486.1 | [1] |
Corporate and Other [Member] | ||||||||
Segment Pre-tax Income (Loss) | ||||||||
Interest income | 53.8 | 28.6 | 95 | 57.3 | ||||
Interest (expense) benefit | (86) | (42.7) | (130.8) | (85.1) | ||||
Other non-interest income | 3.9 | 13.4 | 5.7 | 17.5 | ||||
Operating expenses / loss on debt extinguishment and deposit redemption | (185.9) | (25.7) | (221.2) | (62.7) | ||||
Income from continuing operations before benefit (provision) for income taxes | (214.2) | (26.4) | (251.3) | (73) | ||||
Commercial Banking [Member] | Operating Segments [Member] | ||||||||
Segment Pre-tax Income (Loss) | ||||||||
Interest income | 316.6 | 323.4 | 624.1 | 647.3 | ||||
Interest (expense) benefit | (127.8) | (130.3) | (247.6) | (260.4) | ||||
Provision for credit losses | 0.2 | (22.2) | (49) | (108.6) | ||||
Rental income on operating leases | 251.2 | 257 | 502.5 | 517.3 | ||||
Other non-interest income | 74.8 | 68 | 147.1 | 126 | ||||
Depreciation on operating lease equipment | (77.4) | (63.1) | (150.9) | (124.4) | ||||
Maintenance and other operating lease expenses | (53.3) | (50.6) | (107.1) | (99.5) | ||||
Operating expenses / loss on debt extinguishment and deposit redemption | (176.5) | (188) | (355.2) | (385.4) | ||||
Income from continuing operations before benefit (provision) for income taxes | 207.8 | 194.2 | 363.9 | 312.3 | ||||
Select Period End Balances | ||||||||
Loans | 22,341.2 | 22,973.7 | 22,341.2 | 22,973.7 | ||||
Credit balances of factoring clients | 1,405.3 | 1,215.2 | 1,405.3 | 1,215.2 | ||||
Assets held for sale | 1,153.8 | 508.2 | 1,153.8 | 508.2 | ||||
Operating lease equipment, net | 6,736 | 7,179.1 | 6,736 | 7,179.1 | ||||
Consumer Banking [Member] | Operating Segments [Member] | ||||||||
Segment Pre-tax Income (Loss) | ||||||||
Interest income | 101.6 | 103.5 | 201.6 | 208.8 | ||||
Interest (expense) benefit | 9.6 | (4.8) | 16.1 | (12.8) | ||||
Provision for credit losses | (4.6) | (1.1) | (5.1) | (4.2) | ||||
Other non-interest income | 5.7 | 11.7 | 13.6 | 19.9 | ||||
Operating expenses / loss on debt extinguishment and deposit redemption | (96.2) | (86) | (191.8) | (171.1) | ||||
Income from continuing operations before benefit (provision) for income taxes | 16.1 | 23.3 | 34.4 | 40.6 | ||||
Select Period End Balances | ||||||||
Loans | 6,690.5 | 7,120.1 | 6,690.5 | 7,120.1 | ||||
Assets held for sale | 56.4 | 37.8 | 56.4 | 37.8 | ||||
Non-Strategic Portfolios [Member] | Operating Segments [Member] | ||||||||
Segment Pre-tax Income (Loss) | ||||||||
Interest income | 6.2 | 23.2 | 13.2 | 48.2 | ||||
Interest (expense) benefit | (5) | (13.8) | (10) | (28.3) | ||||
Rental income on operating leases | 4 | 7.8 | ||||||
Other non-interest income | 0.2 | 6.7 | (2.7) | 21.2 | ||||
Operating expenses / loss on debt extinguishment and deposit redemption | (1.8) | (12) | (3.8) | (24.2) | ||||
Income from continuing operations before benefit (provision) for income taxes | (0.4) | 8.1 | (3.3) | 24.7 | ||||
Select Period End Balances | ||||||||
Assets held for sale | $ 114.6 | $ 1,093.1 | $ 114.6 | $ 1,093.1 | ||||
[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.Assets Cash and interest bearing deposits, restricted$93.2 $99.9Total loans, net of allowance for loan losses181.4 300.5Operating lease equipment, net764.4 775.8Assets of discontinued operations— 2,321.7Total Assets$1,039.0 $3,497.9Liabilities Beneficial interests issued by consolidated VIEs (classified as long-term borrowings)$647.4 $770.0Liabilities of discontinued operations— 1,204.6Total Liabilities$647.4 $1,974.6 |
Goodwill (Schedule of Goodwill)
Goodwill (Schedule of Goodwill) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 685.4 | |
Transfers to Held for Sale | (65.1) | |
Foreign exchange translation | 5.2 | |
Goodwill, ending balance | $ 625.5 | 625.5 |
Commercial Banking [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 642.2 | |
Transfers to Held for Sale | 65 | (65.1) |
Foreign exchange translation | 5.2 | |
Goodwill, ending balance | 582.3 | 582.3 |
Consumer Banking [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 43.2 | |
Transfers to Held for Sale | 0 | |
Foreign exchange translation | 0 | |
Goodwill, ending balance | $ 43.2 | $ 43.2 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Goodwill [Line Items] | ||
Transfers | $ (65.1) | |
Commercial Banking [Member] | ||
Goodwill [Line Items] | ||
Transfers | $ 65 | $ (65.1) |