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CIT Reports Core Loans, Leases Rise 8 percent in Q2 Y/Y

July 24, 2019, 07:02 AM
Filed Under: Corporate Earnings

CIT Group Inc. reported second-quarter net income available to common shareholders of $128 million compared with $117 million a year ago. It posted income from continuing operations, excluding noteworthy items, available to common shareholders of $127 million up from $125 million in the second quarter 2018.

“We posted another quarter of solid financial performance and increased tangible book value per share by 3.6 percent in the second quarter,” said CIT Chairwoman and Chief Executive Officer Ellen R. Alemany. “We continued to advance our strategic plan and delivered growth in core loans and leases, additional optimization of our balance sheet and improved operating efficiency. We remain committed to continued execution of our strategic plan and creating long-term shareholder value.”

Average loans and leases rose slightly from the prior and year-ago quarters. Average core loans and leases 1 percent from the prior quarter and 8 percent from the year-ago quarter. The company also noted continued strong origination levels across all core portfolios.

The company said it maintained strong credit quality and disciplined underwriting standards during the quarter. Credit reserves remain strong at 1.56 percent of total portfolio and 1.89 percent of Commercial Banking portfolio.

Selected Highlights

  • Other non-interest income increased $9 million from the prior quarter to $106 million, primarily driven by an increase in gains on the sale of loans in Commercial Banking.
  • Operating expenses, excluding intangible asset amortization, decreased $8 million from the prior quarter to $262 million, driven by lower advertising and marketing costs and lower employee costs.
  • Provision for credit losses was $29 million, down from $33 million in the prior quarter.
  • Net charge-offs of $31 million (0.40 percent of average loans) included $30 million (0.49 percent of average loans) in the Commercial Banking segment. Non-accrual loans declined by $26 million to 0.86 percent.

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