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    CIT Reports Fourth Quarter 2010 Net Income of $75 Million, $0.37 Per Diluted Share; Full-Year 2010 Net Income of $517 Million, $2.58 Per Diluted Share
    Business activity increased - new funded volume up 41% sequentially
    Portfolio optimization advanced - sold $1.2 billion of assets
    Credit quality remained stable - non-accrual loans declined 20%
    High cost debt reduced - $1.4 billion of Series B notes repaid
    Operating expenses declined excluding $32 million office consolidation charge
    Capital ratios remain strong - Tier One Capital ratio exceeds 19%
    Book value increased to $44.48 per share
    Tuesday, February 15, 2011 06:00 AM
    I am pleased with the significant progress we have made this past year

    NEW YORK--(BUSINESS WIRE)--CIT Group Inc. (NYSE: CIT), a leading provider of financing to small businesses and middle market companies, today reported net income for the quarter ended December 31, 2010 of $75 million, $0.37 per diluted share. Net income for the full year was $517 million, $2.58 per diluted share.

    “I am pleased with the significant progress we have made this past year,” said John A. Thain, Chairman and Chief Executive Officer. “We’ve completed the build out of our senior management team, eliminated more than $7 billion of high-cost debt, sold more than $5 billion of assets, and funded more than $4.5 billion in new business. We will continue to serve the small business and middle market sectors, the engines of economic growth in the U.S., as we remain focused on increasing the value of our franchise.”

    As announced on February 2, 2011, CIT will restate the financial results of the first three quarters of 2010 in conjunction with filing its Form 10-K. Information regarding the restatements is provided in the “2010 Quarterly Restatements” section and tables that follow. All comparisons to prior 2010 quarters are to this restated information.

    Summary of Fourth Quarter Financial Results

    Fourth quarter results reflect broad-based increases in new business volume, further progress reducing our funding costs and continued stabilization in credit trends. Net income declined sequentially reflecting a decrease in interest income, lower gains on asset sales and higher operating expenses, which included a $32 million pre-tax restructuring charge. Earnings also reflect a decline in net finance revenue, attributable in part to lower average earning assets, higher credit costs, and increased debt prepayment fees of $49 million, partially offset by favorable income tax settlements. Pre-tax income includes benefits from fresh start accounting (FSA) related items that totaled $289 million, up $9 million sequentially.

    Total assets declined $2.5 billion during the quarter to $51.0 billion at December 31, 2010, as contraction from the sale of non-core assets, prepayments and portfolio run-off exceeded new business activity. Significant asset sales included certain energy-related assets in Corporate Finance, several aircraft in Transportation Finance, and the private student loan portfolio in the Consumer segment. Assets held for sale at December 31, 2010 include vendor receivables, government-guaranteed student loans and corporate loans. New funded business volume increased to $1.5 billion from $1.1 billion last quarter, reflecting increased corporate lending and aircraft deliveries.

    Net finance revenue1 declined from the third quarter as the impact of lower average earning assets (down $2.5 billion) exceeded the slightly higher FSA accretion. Net operating lease revenues were down slightly from the third quarter as the benefit of higher equipment asset balances was offset by the impact of lower lease rates on renewals. As a percentage of average earning assets, net finance revenue was 3.04%, down from 3.44% in the third quarter, and included a 2.94% benefit from FSA. Excluding FSA and the effect of prepayment penalties on high-cost debt in both quarters, margin was 0.56%, down 39 basis points from the third quarter, as our changing portfolio mix more than offset the benefits of paying down high-cost debt. Asset yields declined due to the impact from the third quarter sale of higher yielding consumer receivables in Vendor Finance as well as compressed operating lease margins.

    Other income (excluding operating lease rentals) was down from the third quarter as lower gains on asset sales offset higher recoveries on receivables charged-off prior to the adoption of FSA.

    Operating expenses for the December 2010 quarter included $32 million of restructuring charges related primarily to the consolidation of office space in the New York region. Absent these charges, operating expenses declined from the prior quarter, primarily due to lower compensation costs.

    The current quarter includes an income tax benefit as favorable settlements of prior year international tax positions were partially offset by taxes on international operations and valuation allowances related to U.S. losses.

    Credit

    Non-accrual loans decreased over $400 million from the third quarter to $1.6 billion, due primarily to repayments and asset dispositions in Corporate Finance and Transportation Finance. Reported net charge-offs were $180 million, up from $101 million in the third quarter. This increase includes the acceleration of charge-offs based on delinquency status in selected small-ticket portfolios in Vendor Finance and Corporate Finance as well as charge-offs on loans moved to held for sale. These amounts do not reflect $69 million of recoveries of pre-FSA charge-offs recorded in other income.

    Management also evaluates credit performance using credit metrics that exclude the impact of FSA. On this basis, gross charge-offs were $306 million for the fourth quarter, up $72 million from the third quarter. Non-accrual loans of $2.0 billion decreased from $2.6 billion at the end of the third quarter. New inflows to non-accrual loans continued to decline.

    Allowance for Loan Losses

    The allowance for loan losses decreased to $416 million. Specific reserves increased largely due to pre-emergence loans, including energy exposures. Non-specific reserves declined as a result of the acceleration of charge-offs based upon delinquency status, portfolio contraction, and charge-offs on assets moved to held for sale, partially offset by reserve build for new volume. In aggregate, the provision rose $17 million from the third quarter.

    Capital and Funding

    Total cash at December 31, 2010 was $11.2 billion and consisted of $6.3 billion at the bank holding company, $1.3 billion at CIT Bank, $1.0 billion at operating subsidiaries and $2.6 billion in other restricted cash.

    We redeemed $1.4 billion of 10.25% Series B Notes during the fourth quarter and the remaining balance of Series B notes (approximately $750 million) on January 4, 2011. We also redeemed $500 million of the 7% Series A notes due in 2013 on January 31, 2011.

    Tier 1 and Total Capital ratios at year-end were 19.1% and 20.0%, respectively, up from 18.4% and 19.3% at September 30, 2010. Risk-weighted assets totaled $44.1 billion, down from $45.3 billion due to lower asset levels and partially offset by the Company’s commitment to purchase 38 new Boeing aircraft. Book value per share at December 31, 2010 was $44.48.

    Segment Highlights

    Corporate Finance

    Corporate Finance pre-tax earnings were $55 million, down from $139 million in the third quarter, as an increase in credit costs and lower gains on asset sales offset higher recoveries on loans charged-off prior to the adoption of FSA. Financing and leasing assets declined to $8.8 billion, largely due to sales of certain domestic energy-related assets and non-U.S. loans, partially offset by higher new business activity. Committed new volume more than doubled and funded loan volume increased 57% from the third quarter. Most of the U.S. volume was originated by CIT Bank. Non-accrual loans declined $276 million to $1.2 billion at December 31, 2010 on sales, repayments and charge-offs. The increase in provision for credit losses was largely concentrated in the small business lending and energy portfolios. Operating expenses declined from the third quarter on lower compensation costs, reflecting, in part, a 5% reduction in headcount.

    Transportation Finance

    Transportation Finance pre-tax earnings were $10 million, down from $19 million in the third quarter, as lower gains on asset sales offset a lower provision for credit losses. Rail fleet utilization, including commitments, increased slightly to above 94%, but that benefit was offset by lower renewal rates. Rental income in commercial aerospace was impacted by the redeployment of aircraft, including eight aircraft returned from a bankrupt carrier, as well as renewal rate pressure. Non-accrual loans declined, primarily due to a repayment by a business air customer. In the fourth quarter we placed six new aircraft and we have lease commitments for all aircraft to be delivered in 2011. We recently announced an order for 38 new Boeing aircraft that are scheduled for delivery between 2014 and 2017.

    Trade Finance

    Trade Finance pre-tax earnings were $5 million, reflecting lower credit costs, interest expense and operating expenses. Factoring volume was $7 billion, unchanged from the third quarter and reflected a net benefit from new accounts. Net interest revenue improved due to repayments of certain non-accrual accounts, which also reduced the non-accrual loan balance. Other income rose due to higher recoveries on accounts charged-off prior to the adoption of FSA. Net charge-offs were essentially flat with the third quarter and reserves on specific non-accrual accounts decreased in the fourth quarter.

    Vendor Finance

    Vendor Finance pre-tax earnings were $49 million, down from $89 million in the third quarter, reflecting lower gains on asset sales and a decline in asset yields. The reduced portfolio yields reflect the sales and run-off of higher-yielding consumer receivables, which had a higher risk profile. We funded $584 million of new business volume, an increase of 8%, with double-digit yields that were consistent with new business yields in the third quarter. Total financing and leasing assets declined $0.3 billion to $5.4 billion as the business continues to streamline its portfolio mix. Provision for credit losses decreased due to portfolio contraction, including transfers to held for sale. Non-accrual loans rose, while delinquencies declined from the third quarter.

    Consumer Finance

    Consumer Finance pre-tax earnings were $1 million, improved from a pre-tax loss of $14 million in the third quarter as asset margins improved due to accelerated FSA accretion. We completed the sale of the private student loan portfolio, which resulted in a slight loss that was recorded in other income. In January we announced that we will outsource the servicing of the remaining government-guaranteed student loan portfolio and completed the sale of approximately $250 million of government-guaranteed loans.

    CIT Bank

    CIT Bank continues to actively originate new loans. Committed loan volume was the highest for the year at $675 million, of which $370 million was funded, representing a 64% increase over the third quarter. Total assets declined from September 30, 2010, as cash was used to repay a borrowing facility, and loans remained flat at $5.2 billion. Total deposits declined modestly to $4.5 billion, due to reduced funding requirements. The bank established a $250 million conduit facility, which is currently undrawn and creates back-up liquidity. The Total Capital ratio at the Bank was 58.1% and the Tier 1 Leverage ratio was 24.4%.

    Full Year 2010 Results

    CIT’s 2010 results reflect the Company’s progress with respect to its strategic priorities including hiring key personnel, optimizing the portfolio, reducing the cost of capital and improving its operations as a bank holding company. Full year 2010 net income was $517 million, $2.58 per diluted share and included a significant contribution from FSA. Operating results reflect lower asset levels, increasing new business volumes, lower funding costs and re-establishment of the allowance for loan losses. Total finance and leasing assets declined to $37 billion, including the sale of over $5 billion of consumer or non-core commercial assets. Proceeds from asset sales, portfolio run-off and new financings enabled the repayment of $6 billion of high cost debt during 2010 and the Company’s capital ratios increased significantly as a result of the strong earnings and strategic portfolio reductions. Full-year FSA net accretion added $1.5 billion to pre-tax income; well above initial forecasts largely due to accelerated asset repayments. The effective tax rate of 32% for the full year primarily reflects taxes on income from certain international operations and valuation allowances recorded against U.S. losses.

    Reported net charge-offs were $465 million for the year, or 1.53% of average finance receivables. These amounts do not reflect $278 million of recoveries of pre-FSA charge-offs that were recorded in other income. Reported non-accrual loans were $1.6 billion, up $42 million from December 31, 2009. Excluding the impact of FSA, net charge-offs for the year were $982 million, or 2.91% of pre-FSA average finance receivables and exclude recoveries of $278 million in other income. On a pre-FSA basis, non-accrual loans declined from $2.8 billion at December 31, 2009 to $2.0 billion. New inflows to non-accrual loans for the past two quarters remained considerably below the quarterly rate for the first half of the year.

    2011 Commentary

    The Company expects 2011 results to reflect significantly reduced FSA benefits as expectations for asset repayments slow and voluntary Series A debt redemptions result in both prepayment fees and FSA-related costs since the debt is carried at a discount. The Company remains focused on increasing new business volume and utilizing cost efficient funding sources, such as deposits and conduit facilities, to improve pre-FSA net finance margins. The Company remains committed to reducing operating expenses but will continue to invest in infrastructure and controls.

    2010 Quarterly Restatements

    The Company recently announced it will restate its financial statements for each of the first three quarters of 2010. This restatement is to correct for errors that relate primarily to the application of FSA. These restated amounts will include previous revisions to the quarters ended March 31, 2010 and June 30, 2010 that were included in the September 30, 2010 Form 10-Q. The effect of the restatement from the revised results that were included in the Company's September 30, 2010 Form 10-Q was a $24 million increase in net income for the nine months ended September 30, 2010, resulting in net income of $442 million for that period. Net income increased for the quarters ended March 31, 2010 and June 30, 2010, by $29 million and $10 million, respectively and decreased for the quarter ended September 30, 2010 by $15 million. The December 31, 2009 balance sheet was revised for immaterial items. The combined impact of these changes is an increase of $0.10 per share to the previously reported book value and a slight change to the previously reported tangible book value, both as of September 30, 2010.

    Tables reflecting the previously reported balances, required corrections and restated amounts impacting the income statements and balance sheets, along with descriptions of significant corrections are included in the accompanying financial tables.

    See attached tables for financial statements and supplemental financial information.

    Conference Call and Web cast

    Chairman and Chief Executive Officer John A. Thain and Chief Financial Officer Scott T. Parker will discuss these results on a conference call and audio Web cast today, February 15, 2011, at 8:00 a.m. (EST). Interested parties may access the conference call live by dialing 866-831-6272 for U.S. and Canadian callers or 617-213-8859 for international callers and reference access code “CIT Group” or access the audio web cast at the following website: http://ir.cit.com. An audio replay of the call will be available until 11:59 p.m. (EST) on March 1, 2011, by dialing 888-286-8010 for U.S. and Canadian callers or 617-801-6888 for international callers with the access code 90041701, or at the following website: http://ir.cit.com.

    Individuals interested in receiving future updates on CIT via e-mail can register at http://newsalerts.cit.com.

    About CIT

    Founded in 1908, CIT (NYSE: CIT) is a bank holding company with more than $35 billion in finance and leasing assets. It provides financing and leasing capital to its more than one million small business and middle market clients and their customers across more than 30 industries. CIT maintains leadership positions in small business and middle market lending, factoring, retail finance, aerospace, equipment and rail leasing, and global vendor finance. www.cit.com

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of applicable federal securities laws that are based upon our current expectations and assumptions concerning future events, which are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. The words “expect,” “anticipate,” “estimate,” “forecast,” “initiative,” “objective,” “plan,” “goal,” “project,” “outlook,” “priorities,” “target,” “intend,” “evaluate,” “pursue,” “commence,” “seek,” “may,” “would,” “could,” “should,” “believe,” “potential,” “continue,” or the negative of any of those words or similar expressions is intended to identify forward-looking statements. All statements contained in this press release, other than statements of historical fact, including without limitation, statements about our plans, strategies, prospects and expectations regarding future events and our financial performance, are forward-looking statements that involve certain risks and uncertainties. While these statements represent our current judgment on what the future may hold, and we believe these judgments are reasonable, these statements are not guarantees of any events or financial results, and our actual results may differ materially. Important factors that could cause our actual results to be materially different from our expectations include, among others, the risk that CIT is unsuccessful in refining and implementing its strategy and business plan, the risk that CIT's changes in its senior management team affects CIT's ability to react to and address key business and regulatory issues, the risk that CIT is delayed in transitioning certain business platforms to CIT Bank and may not succeed in developing a stable, long-term source of funding, and the risk that CIT continues to be subject to liquidity constraints and higher funding costs. We describe these and other risks that could affect our actual results in Item 1A, “Risk Factors”, of our latest Annual Report on Form 10-K filed with the Securities and Exchange Commission. Accordingly, you should not place undue reliance on the forward-looking statements contained in this press release. These forward-looking statements speak only as of the date on which the statements were made. CIT undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except where expressly required by law.

    Non GAAP Measurements

    Net finance revenue is a non-GAAP measurement used by management to gauge portfolio performance. ‘Pre FSA’ is non-GAAP and provides the user with additional data that is more comparable to historical and peer disclosures.

    1 Net finance revenue is a non-GAAP measure, see page 18 for reconciliation of non-GAAP to GAAP financial information.

    CIT GROUP INC. AND SUBSIDIARIES
    UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
    (dollars in millions, except per share data)
                 
        Quarters Ended   Year Ended
        December 31,   September 30,   December 31,
          2010       2010       2010  
    Interest income       (Restated)    
    Interest and fees on loans   $ 746.9     $ 830.9     $ 3,691.7  
    Interest and dividends on investments     7.1       7.2       28.9  
    Total interest income     754.0       838.1       3,720.6  
    Interest expense            
    Interest on long-term borrowings     (679.1 )     (710.4 )     (2,989.3 )
    Interest on deposits     (24.6 )     (23.7 )     (87.4 )
    Total interest expense     (703.7 )     (734.1 )     (3,076.7 )
    Net interest revenue     50.3       104.0       643.9  
    Provision for credit losses     (182.4 )     (165.1 )     (820.3 )
    Net interest revenue, after credit provision     (132.1 )     (61.1 )     (176.4 )
    Other income            
    Rental income on operating leases     398.3       397.7       1,639.7  
    Other     223.8       289.5       1,002.2  
    Total other income     622.1       687.2       2,641.9  
    Other expenses            
    Depreciation on operating lease equipment     (166.6 )     (161.7 )     (679.1 )
    Operating expenses     (250.0 )     (228.8 )     (1,018.3 )
    Total other expenses     (416.6 )     (390.5 )     (1,697.4 )
    Income before provision for income taxes     73.4       235.6       768.1  
    Benefit (provision) for income taxes     2.0       (117.3 )     (246.9 )
    Net income before attribution of noncontrolling interests     75.4       118.3       521.2  
    Net (income) loss attributable to noncontrolling interests, after tax     (0.6 )     (2.5 )     (4.4 )
    Net income   $ 74.8     $ 115.8     $ 516.8  
                 
    Basic earnings per common share   $ 0.37     $ 0.58     $ 2.58  
    Diluted earnings per common share   $ 0.37     $ 0.58     $ 2.58  
    Average number of common shares - basic (thousands)     200,359       200,323       200,201  
    Average number of common shares - diluted (thousands)     200,905       200,668       200,575  
                             

    CIT GROUP INC. AND SUBSIDIARIES

    UNAUDITED CONSOLIDATED BALANCE SHEETS

    (dollars in millions, except per share data)

                 
        December 31,   September 30,   December 31,
          2010       2010     2009
            (Restated)   (Revised)

    Assets

               
    Total cash and deposits   $ 11,204.0     $ 11,201.7     $ 9,825.9
    Trading assets at fair value - derivatives     25.7       45.2       44.1
    Assets held for sale     1,218.5       887.7       343.8
                 
    Loans     24,500.5       27,237.0       34,837.6
    Allowance for loan losses     (416.2 )     (425.5 )     -
    Total loans, net of allowance for loan losses     24,084.3       26,811.5       34,837.6
                 
    Operating lease equipment, net     11,136.7       10,966.8       10,911.9
    Goodwill     277.4       277.4       277.4
    Intangible assets, net     119.2       141.5       225.1
    Unsecured counterparty receivable     534.5       682.5       1,094.5
    Other assets     2,357.9       2,495.8       2,467.1
    Total assets   $ 50,958.2     $ 53,510.1     $ 60,027.4
                 

    Liabilities

               
    Deposits   $ 4,536.2     $ 4,733.0     $ 5,177.7
    Trading liabilities at fair value - derivatives     126.3       123.0       41.9
    Credit balances of factoring clients     935.3       959.2       892.9
    Other liabilities     2,466.9       2,440.9       2,250.5
    Long-term borrowings            
    Secured borrowings     10,965.8       12,002.5       14,346.5
    Secured credit facility and expansion facility     3,042.6       3,044.2       7,716.6
    Series A notes     19,037.9       18,959.1       18,733.6
    Series B notes     765.8       2,192.9       2,198.2
    Other debt     167.7       209.4       268.1
    Total long-term borrowings     33,979.8       36,408.1       43,263.0
    Total liabilities     42,044.5       44,664.2       51,626.0

    Equity

               

    Stockholders' equity

               
    Common stock     2.0       2.0       2.0
    Paid-in capital     8,434.1       8,426.6       8,398.0
    Accumulated earnings     498.3       423.6       -
    Accumulated other comprehensive (loss) income     (9.6 )     1.1       -
    Treasury stock, at cost     (8.8 )     (4.0 )     -
    Total common stockholders' equity     8,916.0       8,849.3       8,400.0

    Noncontrolling interests

        (2.3 )     (3.4 )     1.4

    Total equity

        8,913.7       8,845.9       8,401.4
    Total liabilities and equity   $ 50,958.2     $ 53,510.1     $ 60,027.4
                 

    Book Value Per Common Share

               
    Book value per common share   $ 44.48     $ 44.19     $ 41.99
    Tangible book value per common share   $ 42.50     $ 42.10     $ 39.48
                           
    CIT GROUP INC. AND SUBSIDIARIES
    SELECT BALANCES
    (dollars in millions)
                             
    INCOME STATEMENT ITEMS   2010 Quarters Ended   Year Ended    
       

    December 31

     

    September 30(1)

     

    June 30(1)

     

    March 31(1)

     

    December 31, 2010

       
    Other Income                        
                             
    Recoveries of pre-FSA charge-offs   $ 69.3     $ 51.8     $ 113.1     $ 44.0     $ 278.2      
    Gains on loan and portfolio sales     35.3       104.4       75.1       37.0       251.8      
    Gains on sales of leasing equipment     28.4       44.1       54.2       27.9       154.6      
    Fees, commissions and other revenue     28.0       41.7       33.6       42.6       145.9      
    Factoring commissions     36.6       37.3       34.9       36.2       145.0      
    Counterparty receivable accretion     17.7       20.0       23.9       35.8       97.4      

    (Loss) gain on non-qualifying hedge derivatives and foreign currency exchange

        8.5    

     

    (9.8 )     3.7       (73.1 )     (70.7 )    
    Total other income   $ 223.8     $ 289.5     $ 338.5     $ 150.4     $ 1,002.2      
                             
    Operating Expenses                        
    Salaries and general operating expenses:                        
    Compensation and benefits   $ 114.2     $ 137.6     $ 179.4     $ 140.3     $ 571.5      
    Professional fees     37.4       23.1       25.6       29.7       115.8      
    Technology     18.0       19.6       18.2       19.2       75.0      
    Provision for severance and facilities exiting activities     31.5       6.2       2.6       11.9       52.2      
    Occupancy expense     10.8       11.9       11.3       14.9       48.9      
    Other expenses     38.1       30.4       40.7       45.7       154.9      
    Total operating expenses   $ 250.0     $ 228.8     $ 277.8     $ 261.7     $ 1,018.3      
                             
    Fresh Start Accounting:                        
    Accretion / (Amortization)                        
    Interest income   $ 331.4     $ 345.2     $ 439.9     $ 499.7     $ 1,616.2      
    Interest expense     (106.0 )     (120.8 )     (73.2 )     (94.7 )     (394.7 )    
    Rental income on operating leases     (20.5 )     (30.4 )     (26.6 )     (26.2 )     (103.7 )    
    Other income     17.7       20.0       23.9       35.8       97.4      
    Depreciation expense     66.5       66.5       71.0       68.5       272.5      
    Total   $ 289.1     $ 280.5     $ 435.0     $ 483.1     $ 1,487.7      
                             
    BALANCE SHEET ITEMS                        
    Fresh Start Accounting:   Accretable   Non-accretable   Accretable   Non-accretable        
    (Discount) / Premium   December 31, 2010   December 31, 2009(2)        
    Loans   $ (1,555.4 )   $ (372.2 )   $

    (3,619.2

    )

      $

    (1,668.7

    )

           
    Operating lease equipment, net     (3,022.0 )     -       (3,237.9 )     -          
    Goodwill and Intangible assets     119.2       277.4       225.1       277.4          
    Other assets     (223.4 )     -       (320.8 )     -          
    Total assets   $ (4,681.6 )   $ (94.8 )   $

    (6,952.8

    )

      $

    (1,391.3

    )

           
    Deposits   $ 38.5     $ -     $ 90.5     $ -          
    Long-term borrowings     (2,948.5 )     -       (3,396.5 )     -          
    Other liabilities     -       339.6       -       336.6          
    Total liabilities   $ (2,910.0 )   $ 339.6     $ (3,306.0 )   $ 336.6          
        Accretable   Non-accretable   Accretable   Non-accretable   Accretable   Non-accretable
        September 30, 2010(1)   June 30, 2010(1)   March 31, 2010(1)
    Loans   $ (1,932.4 )   $ (565.6 )   $ (2,387.5 )   $ (1,153.5 )   $ (3,131.6 )   $ (1,473.6 )
    Operating lease equipment, net     (3,052.8 )     -       (3,105.6 )     -       (3,150.8 )     -  
    Goodwill and Intangible assets     141.4       277.4       174.4       277.4       209.1       277.4  
    Other assets     (241.2 )     -       (261.2 )     -       (285.1 )     -  
    Total assets   $ (5,085.0 )   $ (288.2 )   $ (5,579.9 )   $ (876.1 )   $ (6,358.4 )   $ (1,196.2 )
    Deposits   $ 47.5     $ -     $ 58.4     $ -     $ 74.7     $ -  
    Long-term borrowings     (3,063.8 )     -       (3,195.0 )     -       (3,284.9 )     -  
    Other liabilities     -       220.4       -       285.4       -       306.7  
    Total liabilities   $ (3,016.3 )   $ 220.4     $ (3,136.6 )   $ 285.4     $ (3,210.2 )   $ 306.7  
                             
    (1) Certain balances have been restated.
    (2) Certain balances have been revised.
     
    CIT GROUP INC. AND SUBSIDIARIES
    (dollars in millions)
                                             
        December 31,  

    September 30,

      June 30,   March 31,   December 31,                    
        2010   2010(1)   2010(1)   2010(1)   2009                    
    FINANCING AND LEASING ASSETS                   (Revised)                    
    Corporate Finance                                        
    Finance receivables   $ 8,482.2   $ 9,730.0   $ 10,346.2   $ 12,145.3   $ 12,165.8                    
    Operating lease equipment, net     83.2     98.2     105.6     135.7     137.3                    
    Assets held for sale     219.2     439.3     514.8     287.8     292.6                    
    Financing and leasing assets     8,784.6     10,267.5     10,966.6     12,568.8     12,595.7                    
    Transportation Finance                                        
    Finance receivables     1,388.9     1,576.0     1,636.9     1,778.3     1,808.1                    
    Operating lease equipment, net     10,618.8     10,324.5     10,296.9     10,177.5     10,089.2                    
    Assets held for sale     2.8     28.1     10.4     11.6     17.2                    
    Financing and leasing assets     12,010.5     11,928.6     11,944.2     11,967.4     11,914.5                    
    Trade Finance                                        
    Finance receivables     2,387.4     2,605.5     2,514.6     2,794.1     2,991.0                    
    Vendor Finance                                        
    Finance receivables     4,166.1     5,117.3     6,101.3     6,795.9     8,189.0                    
    Operating lease equipment, net     434.7     544.1     551.9     620.4     685.4                    
    Assets held for sale     749.8     -     18.8     479.8     -                    
    Financing and leasing assets     5,350.6     5,661.4     6,672.0     7,896.1     8,874.4                    
    Consumer                                        
    Finance receivables - student lending     8,035.5     8,156.4     8,723.5     8,864.8     9,584.2                    
    Finance receivables - other     40.4     51.8     66.1     81.2     99.5                    
    Assets held for sale     246.7     420.3     28.5     589.6     34.0                    
    Financing and leasing assets     8,322.6     8,628.5     8,818.1     9,535.6     9,717.7                    
    Total financing and leasing assets   $ 36,855.7   $ 39,091.5   $ 40,915.5   $ 44,762.0   $ 46,093.3                    
                                             
    OTHER ASSETS                                        
    Deposits on commercial aerospace equipment   $ 609.7   $ 582.5   $ 619.8   $ 647.7   $ 635.9                    
    Equity and debt investments     328.5     348.3     342.4     336.1     373.6                    
    Other counterparty receivables     310.7     294.7     5.1     61.0     80.2                    
    Deferred debt costs     126.4     122.3     19.3     21.7     3.6                    
    Tax receivable, other than income taxes     125.1     127.8     109.0     197.3     215.9                    
    Maintenance fee receivables     115.3     109.3     115.1     104.2     70.3                    
    Accrued interest and dividend receivables     97.7     141.2     171.9     206.4     214.7                    
    Prepaid expenses     87.5     86.0     90.7     78.0     81.2                    
    Furniture and fixtures     79.3     90.3     91.8     93.8     102.8                    
    Retained interests in securitizations     -     -     -     -     139.7                    
    Other     477.7     593.4     1,166.2     692.8     549.2                    
    Total other assets   $ 2,357.9   $ 2,495.8   $ 2,731.3   $ 2,439.0   $ 2,467.1                    
                                             
    AVERAGE BALANCES AND RATES                                        
        Quarter Ended   Quarter Ended   Quarter Ended   Quarter Ended   Year Ended
        December 31, 2010  

    September 30, 2010(1)

      June 30, 2010(1)   March 31, 2010(1)   December 31, 2010
    Assets  

    Average

    Balance

      Rate  

    Average

    Balance

      Rate  

    Average

    Balance

      Rate  

    Average

    Balance

      Rate  

    Average

    Balance

      Rate
    Deposits with banks   $ 10,930.6   0.2%   $ 10,415.7   0.2%   $ 9,855.0   0.2%   $ 9,531.1   0.2%   $ 10,136.1   0.2%
    Investments     340.6   1.9%     346.8   1.8%     346.2   3.1%     347.7   3.9%     345.9   2.7%
    Loans (including held for sale assets)     27,065.0   11.4%     29,280.1   11.7%     31,908.9   13.1%     34,955.0   12.9%     30,840.1   12.3%
    Total interest earning assets / interest income     38,336.2   8.1%     40,042.6   8.6%     42,110.1   9.9%     44,833.8   10.1%     41,322.1   9.2%
    Operating lease equipment, net     11,017.3   8.4%     10,975.8   8.6%     10,973.5   8.7%     10,945.2   9.2%     10,981.0   8.7%
    Other     2,951.1         3,359.3         3,571.3         3,890.3         3,428.7    
    Total average assets   $ 52,304.6       $ 54,377.7       $ 56,654.9       $ 59,669.3       $ 55,731.8    
    Liabilities                                        
    Deposits   $ 4,644.4   2.1%   $ 4,710.4   2.0%   $ 4,723.2   1.5%   $ 5,005.8   1.7%   $ 4,780.1   1.8%
    Long-term borrowings     35,194.3   7.7%     37,321.6   7.6%     39,925.9   7.9%     42,929.3   7.6%     38,807.4   7.7%
    Total interest-bearing liabilities     39,838.7   7.1%     42,032.0   7.0%     44,649.1   7.2%     47,935.1   6.9%     43,587.5   7.1%
    Credit balances of factoring clients     954.9         949.3         867.7         866.8         910.5    
    Other     11,511.0         11,396.4         11,138.1         10,867.4         11,233.8    
    Total average liabilities and equity   $ 52,304.6       $ 54,377.7       $ 56,654.9       $ 59,669.3       $ 55,731.8    
                                             
    (1) Certain balances have been restated.
     
    CIT GROUP INC. AND SUBSIDIARIES
    (dollars in millions)
                                             
    CREDIT METRICS - AFTER FRESH START ACCOUNTING
        Quarter Ended   Quarter Ended   Quarter Ended   Quarter Ended   Year Ended

    Gross Charge-offs To Average Finance Receivables

     

    December 31, 2010

     

    September 30, 2010(1)

     

    June 30, 2010(1)

     

    March 31, 2010(1)

     

    December 31, 2010

    Corporate Finance   $ 109.8   4.73%   $ 41.1     1.61%   $ 53.2   1.82%   $ 62.2     1.98%   $ 266.3     2.43%
    Transportation Finance     4.8   1.28%     -     -     -   -     -     -     4.8     0.29%
    Trade Finance     6.8   1.07%     7.8     1.18%     12.5   1.90%     2.7     0.38%     29.8     1.12%
    Vendor Finance     79.8   6.60%     55.0     3.75%     38.2   2.38%     10.3     0.53%     183.3     2.94%
    Commercial Segments     201.2   4.43%     103.9     2.04%     103.9   1.85%     75.2     1.20%     484.2     2.25%
    Consumer     4.2   0.21%     8.0     0.37%     9.4   0.42%     4.5     0.19%     26.1     0.30%
    Total   $ 205.4   3.12%   $ 111.9     1.55%   $ 113.3   1.44%   $ 79.7     0.92%   $ 510.3     1.68%
                                             
    Net Charge-offs To Average Finance Receivables*                                    
    Corporate Finance   $ 100.2   4.31%   $ 40.5     1.59%   $ 51.9   1.77%   $ 60.8     1.93%   $ 253.4     2.32%
    Transportation Finance     4.8   1.28%     -     -     -   -     -     -     4.8     0.29%
    Trade Finance     6.2   0.98%     7.3     1.10%     12.4   1.89%     2.7     0.38%     28.6     1.08%
    Vendor Finance     64.4   5.32%     45.8     3.13%     32.7   2.04%     9.5     0.49%     152.4     2.45%
    Commercial Segments     175.6   3.86%     93.6     1.84%     97.0   1.72%     73.0     1.17%     439.2     2.04%
    Consumer     4.0   0.20%     7.5     0.35%     9.3   0.42%     4.5     0.19%     25.3     0.29%
    Total   $ 179.6   2.73%   $ 101.1     1.40%   $ 106.3   1.36%   $ 77.5     0.90%   $ 464.5     1.53%
                                             

    Non-accruing Loans To Finance Receivables**

      December 31, 2010   September 30, 2010   June 30, 2010(1)   March 31, 2010(1)   December 31, 2009
    Corporate Finance   $ 1,239.8   14.62%   $ 1,516.0     15.58%   $ 1,644.7   15.91%   $ 1,468.1     12.08%   $ 1,374.8     11.30%
    Transportation Finance     63.2   4.55%     182.7     11.59%     160.5   9.80%     172.8     9.72%     6.8     0.38%
    Trade Finance     164.4   6.89%     198.7     7.63%     96.0   3.82%     90.5     3.24%     90.5     3.03%
    Vendor Finance     147.9   3.55%     126.7     2.48%     149.2   2.45%     179.4     2.64%     102.2     1.25%
    Commercial Segments     1,615.3   9.84%     2,024.1     10.64%     2,050.4   9.95%     1,910.8     8.13%     1,574.3     6.26%
    Consumer     0.7   0.01%     1.2     0.01%     1.5   0.02%     0.7     0.01%     0.1     -
    Total   $ 1,616.0   6.60%   $ 2,025.3     7.44%   $ 2,051.9   6.98%   $ 1,911.5     5.89%   $ 1,574.4     4.52%
    * Net charge-offs do not include recoveries of $69.3 million, $51.8 million, $113.1 million, and $44.0 million recorded in Other Income for the quarters ended December 31, September 30, June 30, and March 31, 2010 and $278.2 million for the year ended December 31, 2010.
    ** Non-accrual loans include loans held for sale. Non-accrual loans at September 30, June 30, and March 31, 2010 do not include balances associated with an entity, which is now consolidated in accordance with 2010 accounting guidance.
    CREDIT METRICS - BEFORE FRESH START ACCOUNTING (NON-GAAP)
        Quarter Ended   Quarter Ended   Quarter Ended   Quarter Ended   Year Ended

    Gross Charge-offs To Average Finance Receivables

      December 31, 2010   September 30, 2010   June 30, 2010(1)   March 31, 2010(1)   December 31, 2010
    Corporate Finance   $ 182.9   6.95%   $ 129.7     4.42%   $ 164.2   4.75%   $ 135.9     3.60%   $ 612.7     4.78%
    Transportation Finance     5.0   1.21%     -     -     -   -     -     -     5.0     0.27%
    Trade Finance     6.8   1.07%     7.8     1.17%     12.5   1.90%     4.7     0.66%     31.8     1.19%
    Vendor Finance     101.5   8.03%     77.6     5.09%     55.1   3.19%     67.9     3.23%     302.1     4.54%
    Commercial Segments     296.2   5.99%     215.1     3.86%     231.8   3.66%     208.5     2.94%     951.6     3.96%
    Consumer     9.5   0.44%     18.2     0.76%     19.8   0.79%     28.6     1.08%     76.1     0.78%
    Total   $ 305.7   4.30%   $ 233.3     2.93%   $ 251.6   2.85%   $ 237.1     2.43%   $ 1,027.7     3.05%
                                             

    Non-accruing Loans To Finance Receivables

     

      December 31, 2010   September 30, 2010   June 30, 2010(1)   March 31, 2010(1)   December 31, 2009
    Corporate Finance   $ 1,604.0   16.76%   $ 1,990.0     17.78%   $ 2,290.9   18.80%   $ 2,280.2     15.38%   $ 2,226.1     14.64%
    Transportation Finance     71.3   4.64%     198.5     11.22%     175.2   9.44%     185.3     9.18%     8.4     0.38%
    Trade Finance     164.4   6.89%     198.7     7.62%     96.0   3.81%     90.5     3.23%     97.3     3.24%
    Vendor Finance     174.9   4.02%     191.3     3.53%     267.7   4.12%     324.6     4.43%     295.9     3.14%
    Commercial Segments     2,014.6   11.29%     2,578.5     12.28%     2,829.8   12.27%     2,880.6     10.68%     2,627.7     8.80%
    Consumer     1.0   0.01%     1.6     0.02%     197.2   2.00%     200.6     1.99%     197.7     1.74%
    Total   $ 2,015.6   7.63%   $ 2,580.1     8.68%   $ 3,027.0   9.19%   $ 3,081.2     8.31%   $ 2,825.4     6.86%
    Credit metrics before fresh start accounting are non-GAAP measurements and are used by management for credit trend analysis.
                                             
    PROVISION AND ALLOWANCE COMPONENTS    
        Provision for Credit Losses       Allowance for Loan Losses
        Quarters Ended           Year Ended                    
       

    December 31,

     

    September 30,

      June 30,   March 31,  

    December 31,

         

    December 31,

     

    September 30,

     

    June 30,

     

    March 31,

        2010   2010(1)   2010(1)   2010(1)   2010       2010   2010(1)   2010(1)   2010(1)
    Specific reserves - impaired loans   $ 47.1   $ 18.0   $ 27.8   $ 28.4   $ 121.3       $ 121.3   $ 74.2   $ 56.2   $ 28.4
    Non-specific reserves     (44.3)     46.0     112.6     120.2     234.5         294.9     351.3     300.7     185.5
    Charge-offs     179.6     101.1     106.3     77.5     464.5         -     -     -     -
    Totals   $ 182.4   $ 165.1   $ 246.7   $ 226.1   $ 820.3       $ 416.2   $ 425.5   $ 356.9   $ 213.9
    (1) Certain balances have been restated.
     
    CIT GROUP INC. AND SUBSIDIARIES
    (dollars in millions)
    SEGMENT RESULTS                                              
        Corporate     Transportation     Trade     Vendor     Commercial           Corporate      
        Finance     Finance     Finance     Finance     Segments     Consumer     and Other     Consolidated
    Quarter Ended December 31, 2010                                              
    Total interest income   $ 360.8     $ 53.4     $ 21.7     $ 234.5     $ 670.4     $ 77.9     $ 5.7     $ 754.0
    Total interest expense     (225.6)       (240.6)       (34.0)       (147.0)       (647.2)       (50.7)       (5.8)       (703.7)
    Provision for credit losses     (169.0)       (7.4)       (1.0)       (1.0)       (178.4)       (4.0)       -       (182.4)
    Rental income on operating leases     6.4       310.5       -       81.4       398.3       -       -       398.3
    Other income, excluding rental income     139.9       13.6       45.1       24.0       222.6       (5.8)       7.0       223.8
    Depreciation on operating lease equipment     (3.7)       (89.2)       -       (73.7)       (166.6)       -       -       (166.6)
    Other expenses     (53.6)       (30.4)       (26.8)       (68.9)       (179.7)       (16.1)       (54.2)       (250.0)
    Income (loss) before provision (benefit) for income taxes   $ 55.2     $ 9.9     $ 5.0     $ 49.3     $ 119.4     $ 1.3     $ (47.3)     $ 73.4

    Net income

     

    $

    47.6

        $ 3.4     $ 5.9    

    $

    8.2

       

    $

    65.1

        $ 1.5    

    $

    8.2

        $ 74.8
    Funded new business volume   $ 496.7     $ 425.4     $ -     $ 584.4     $ 1,506.5     $ -     $ -     $ 1,506.5
    Average Earning Assets   $ 9,653.4     $ 11,930.1     $ 1,553.8     $ 5,464.0     $ 28,601.3     $ 8,450.2     $ -     $ 37,051.5
    Average Finance Receivables   $ 9,285.8     $ 1,508.8     $ 2,540.4     $ 4,834.1     $ 18,169.1     $ 8,146.5     $ -     $ 26,315.6
                                                   
    Quarter ended September 30, 2010 (Restated)                                          
    Total interest income   $ 380.2     $ 55.8     $ 23.2     $ 284.4     $ 743.6     $ 89.1     $ 5.4     $ 838.1
    Total interest expense     (221.4)       (237.6)       (37.7)       (160.8)       (657.5)       (68.1)       (8.5)       (734.1)
    Provision for credit losses     (105.5)       (17.2)       (11.4)       (38.5)       (172.6)       (7.5)       15.0       (165.1)
    Rental income on operating leases     6.1       307.7       -       83.9       397.7       -       -       397.7
    Other income, excluding rental income     152.6       28.7       44.1       65.8       291.2       (8.3)       6.6       289.5
    Depreciation on operating lease equipment     (3.2)       (82.2)       -       (76.3)       (161.7)       -       -       (161.7)
    Other expenses     (69.7)       (36.7)       (30.7)       (69.6)       (206.7)       (19.1)       (3.0)       (228.8)
    Income (loss) before provision (benefit) for income taxes   $ 139.1     $ 18.5     $ (12.5)     $ 88.9     $ 234.0     $ (13.9)     $ 15.5     $ 235.6
    Net income (loss)  

    $

    66.1

        $ 11.5     $ (10.5)    

    $

    83.5

       

    $

    150.6

        $ (13.1)    

    $

    (21.7)

        $ 115.8
    Funded new business volume   $ 316.5     $ 209.5     $ -     $ 541.9     $ 1,067.9     $ -     $ -     $ 1,067.9
    Average Earning Assets   $ 10,719.1     $ 11,968.9     $ 1,703.4     $ 6,413.8     $ 30,805.2     $ 8,722.8     $ -     $ 39,528.0
    Average Finance Receivables   $ 10,220.5     $ 1,639.8     $ 2,641.8     $ 5,857.2     $ 20,359.3     $ 8,608.6     $ -     $ 28,967.9
                                                   
    Year Ended December 31, 2010                                              
    Total interest income   $ 1,783.7     $ 230.7     $ 99.8     $ 1,226.1     $ 3,340.3     $ 359.6     $ 20.7     $ 3,720.6
    Total interest expense     (1,021.8)       (970.8)       (162.8)       (666.1)       (2,821.5)       (245.0)       (10.2)       (3,076.7)
    Provision for credit losses     (503.6)       (28.9)       (58.6)       (203.9)       (795.0)       (25.3)       -       (820.3)
    Rental income on operating leases     28.6       1,240.0       -       372.2       1,640.8       -       (1.1)       1,639.7
    Other income, excluding rental income     601.5       82.7       189.8       161.8       1,035.8       10.0       (43.6)       1,002.2
    Depreciation on operating lease equipment     (15.6)       (335.9)       -       (328.1)       (679.6)       -       0.5       (679.1)
    Other expenses     (293.5)       (152.2)       (122.5)       (311.7)       (879.9)       (79.4)       (59.0)       (1,018.3)
    Income (loss) before provision (benefit) for income taxes   $ 579.3     $ 65.6     $ (54.3)     $ 250.3     $ 840.9     $ 19.9     $ (92.7)     $ 768.1
    Net income (loss)  

    $

    464.5

       

    $

    41.2

        $ (48.7)    

    $

    126.5

       

    $

    583.5

        $ 20.4    

    $

    (87.1)

        $ 516.8
    Funded new business volume   $ 1,203.7     $ 1,116.1     $ -     $ 2,191.0     $ 4,510.8     $ -     $ -     $ 4,510.8
    Average Earning Assets   $ 11,246.5     $ 11,980.9     $ 1,702.7     $ 6,946.0     $ 31,876.1     $ 8,968.2     $ -     $ 40,844.3
    Average Finance Receivables   $ 10,944.1     $ 1,681.4     $ 2,662.1     $ 6,230.4     $ 21,518.0     $ 8,791.4     $ -     $ 30,309.4
                                                                   
    CIT GROUP INC. AND SUBSIDIARIES
    RESTATED UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
    (dollars in millions, except per share data)
                                                     
        Quarter Ended March 31, 2010   Quarter Ended June 30, 2010   Quarter Ended September 30, 2010  

    Nine Months Ended September 30, 2010

        As Originally      

    As

      As Originally      

    As

      As Originally      

    As

      As Originally      

    As

        Reported   Corrections  

    Restated

      Reported   Corrections  

    Restated

      Reported   Corrections  

    Restated

      Reported   Corrections  

    Restated

    Interest income                                                
    Interest and fees on loans(1)(2)(3)   $ 1,043.5   $ 53.9   $ 1,097.4   $ 987.2   $ 29.3   $ 1,016.5   $ 809.5   $ 21.4   $ 830.9   $ 2,884.7   $ 60.1   $ 2,944.8
    Interest and dividends on investments(4)     5.5     1.8     7.3     6.3     1.0     7.3     6.2     1.0     7.2     18.0     3.8     21.8
    Total interest income     1,049.0     55.7     1,104.7     993.5     30.3     1,023.8     815.7     22.4     838.1     2,902.7     63.9     2,966.6
    Interest expense                                                
    Interest on long-term borrowings(1)(5)     (807.7)     (2.9)     (810.6)     (784.7)     (4.5)     (789.2)     (706.9)     (3.5)     (710.4)     (2,300.2)     (10.0)     (2,310.2)
    Interest on deposits(6)(7)     (30.1)     9.3     (20.8)     (28.9)     10.6     (18.3)     (25.3)     1.6     (23.7)     (77.5)     14.7     (62.8)
    Total interest expense     (837.8)     6.4     (831.4)     (813.6)     6.1     (807.5)     (732.2)     (1.9)     (734.1)     (2,377.7)     4.7     (2,373.0)
    Net interest revenue     211.2     62.1     273.3     179.9     36.4     216.3     83.5     20.5     104.0     525.0     68.6     593.6
    Provision for credit losses(1)(8)     (186.6)     (39.5)     (226.1)     (260.7)     14.0     (246.7)     (165.2)     0.1     (165.1)     (636.0)     (1.9)     (637.9)
    Net interest revenue, after credit provision     24.6     22.6     47.2     (80.8)     50.4     (30.4)     (81.7)     20.6     (61.1)     (111.0)     66.7     (44.3)
    Other income                                                
    Rental income on operating leases(9)     418.2     7.6     425.8     419.7     (1.8)     417.9     398.4     (0.7)     397.7     1,236.3     5.1     1,241.4
    Other(1)(10)     132.2     18.2     150.4     330.6     7.9     338.5     269.4     20.1     289.5     760.3     18.1     778.4
    Total other income     550.4     25.8     576.2     750.3     6.1     756.4     667.8     19.4     687.2     1,996.6     23.2     2,019.8
    Other expenses                                                
    Depreciation on operating lease equipment     (173.5)     0.8     (172.7)     (179.0)     0.9     (178.1)     (161.7)     -     (161.7)     (512.9)     0.4     (512.5)
    Operating expenses(1)     (261.9)     0.2     (261.7)     (277.0)     (0.8)     (277.8)     (228.8)     -     (228.8)     (767.2)     (1.1)     (768.3)
    Total other expenses     (435.4)     1.0     (434.4)     (456.0)     0.1     (455.9)     (390.5)     -     (390.5)     (1,280.1)     (0.7)     (1,280.8)
    Income before provision for income taxes     139.6     49.4     189.0     213.5     56.6     270.1     195.6     40.0     235.6     605.5     89.2     694.7
    Provision for income taxes(11)     (42.5)     (0.9)     (43.4)     (71.1)     (17.1)     (88.2)     (64.2)     (53.1)     (117.3)     (187.2)     (61.7)     (248.9)
    Net income before attribution of noncontrolling interests     97.1     48.5     145.6     142.4     39.5     181.9     131.4     (13.1)     118.3     418.3     27.5     445.8
    Net (income) loss attributable to noncontrolling interests, after tax     0.2     (1.2)     (1.0)     (0.3)     -     (0.3)     0.1     (2.6)     (2.5)     -     (3.8)     (3.8)
    Net income   $ 97.3   $ 47.3   $ 144.6   $ 142.1   $ 39.5   $ 181.6   $ 131.5   $ (15.7)   $ 115.8   $ 418.3   $ 23.7   $ 442.0
                                                     
    Basic earnings per common share   $ 0.49   $ 0.23   $ 0.72   $ 0.71   $ 0.20   $ 0.91   $ 0.66   $ (0.08)   $ 0.58   $ 2.09   $ 0.12   $ 2.21
    Average number of common shares - basic (thousands)     200,040         200,040     200,075         200,075     200,323         200,323     200,147         200,147
    Diluted earnings per common share   $ 0.49   $ 0.23   $ 0.72   $ 0.71   $ 0.20   $ 0.91   $ 0.66   $ (0.08)   $ 0.58   $ 2.09   $ 0.11   $ 2.20
    Average number of common shares - diluted (thousands)     200,076         200,076     200,644         200,644     200,668         200,668     200,464         200,464
                                                     
    "As Originally Reported" reflects balances reported in the March 31, 2010, June 30, 2010 and September 30, 2010 Form 10-Q.
     
    "Corrections" reflect changes to the originally reported balances and are described below. The sum of the quarterly corrections does not equal the nine months as the nine months already included certain corrections from the March and June quarters.
    "As Restated" reflects the final restated balances.
    Corrections                                                
    (1) The change in interest and fees on loans, interest on long term borrowings, provision for credit losses, other income and operating expenses due to the consolidation of an entity that should have been consolidated as of January 1, 2010 in accordance with the new consolidation accounting guidance is summarized as follows:
        March   June   September                                    
    Interest and fees on loans   $ 5.8   $ 7.2   $ 6.9                                    
    Interest on long term borrowings   $ (3.1)   $ (3.1)   $ (3.7)                                    
    Provision for credit losses   $ 0.4   $ (2.4)   $ 0.1                                    
    Other income   $ (1.2)   $ (1.0)   $ (0.2)                                    
    Operating expenses   $ (0.5)   $ (0.6)   $ (0.1)                                    
    (2) Correction of certain 2010 first quarter accretion-related errors were associated with performing loans in the Corporate Finance and Transportation Finance segments. This resulted in $10.9 million of accretion income that had been incorrectly reported in the second quarter being correctly reported in the first quarter. In addition, certain other accretion-related errors in Corporate Finance loans related to accretion income that had not been correctly recorded in the quarters ended March 31 and June 30, 2010, were corrected.
    (3) Interest and fees on loans corrected for cash proceeds received on loans that should have been recognized as interest income for the March, June and September quarters.
    (4) Interest and dividends on investments increased to reflect distributions received on an investment in a partnership that was incorrectly deferred.
    (5) Interest expense on long-term borrowings corrected for duplicative recognition of certain interest charges in the quarters ended March 31 and June 30, 2010.
    (6) Interest on deposits corrected to remove amortization of capitalized broker deposit fees that should have been written off at December 31, 2009 in conjunction with the application of FSA.
    (7) Interest on deposits corrected to reflect a reduction in the deposit balance as of December 31, 2009 of $40.9 million due to a duplication of an accrual for accrued interest payable and the associated amortization of the revised FSA deposit balance and to reflect early redemption of certain deposits.
    (8) Provision for credit losses restated principally to correct the inappropriate utilization of approximately $35 million of non-accretable discount in the first quarter of 2010 to offset loan impairments that should have been charged to provision for credit losses in that quarter, as well as reverse approximately $10 million of impairment charges taken in the second quarter of 2010 that should not have been recognized after re-establishing the aforementioned non-accretable discount.
    (9) Rental income on operating leases corrected to write off intangible assets at the time the underlying lease was terminated and to correct for certain intangible assets written off in the March quarter but the lease was terminated prior to the emergence date.
    (10) Other income corrected upward in the first and second quarters of 2010 to record fees earned on a Vendor Finance liquidating portfolio that had been incorrectly deferred. Other income also increased in the first and third quarters of 2010, and decreased in the second quarter, to correct errors in the recording of gains on certain asset sales as well as gains associated with certain derivative financial instruments.

    (11) Provision for income tax adjustment relates to (1) valuation allowances that should have been recorded against certain deferred tax assets during the quarters, (2) a reduction to deferred tax assets on net operating loss carryforwards consequent to the sale of a leveraged lease during the third quarter and (3) recording other corrections.

     
    CIT GROUP INC. AND SUBSIDIARIES
    RESTATED UNAUDITED CONSOLIDATED BALANCE SHEETS
    (dollars in millions, except per share data)
                                                     
        At September 30, 2010   At June 30, 2010   At March 31, 2010   At December 31, 2009
        As Originally       As   As Originally       As   As Originally       As   As Originally      

    As

        Reported   Corrections   Restated   Reported   Corrections   Restated   Reported   Corrections   Restated   Reported   Corrections  

    Revised

    Assets                                                
    Total cash and deposits(1)   $ 11,178.0   $ 23.7   $ 11,201.7   $ 10,666.4   $ 12.0   $ 10,678.4   $ 10,015.6   $ 50.0   $ 10,065.6   $ 9,825.9   $ -   $ 9,825.9
    Trading assets at fair value - derivatives     45.2     -     45.2     216.1     -     216.1     93.5     -     93.5     44.1     -     44.1
    Assets held for sale     887.7     -     887.7     572.5     -     572.5     1,368.8     -     1,368.8     343.8     -     343.8
    Loans(1)(2)(3)     26,753.4     483.6     27,237.0     28,883.2     505.4     29,388.6     32,025.7     433.9     32,459.6     34,865.8     (28.2)     34,837.6
    Allowance for loan losses(1)(4)     (397.1)     (28.4)     (425.5)     (337.8)     (19.1)    

    (356.9)

        (180.8)     (33.1)     (213.9)     -     -     -
    Total loans, net of allowance for loan losses     26,356.3     455.2     26,811.5     28,545.4     486.3     29,031.7     31,844.9     400.8     32,245.7     34,865.8     (28.2)     34,837.6
    Operating lease equipment, net     10,964.5     2.3     10,966.8     10,950.7     3.7     10,954.4     10,931.0     2.6     10,933.6     10,910.0     1.9     10,911.9
    Goodwill and intangible assets, net(5)     391.4     27.5     418.9     407.9     43.9     451.8     440.9     45.6     486.5     464.5     38.0     502.5
    Unsecured counterparty receivable     682.5     -     682.5     818.7     -     818.7     914.6     -     914.6     1,094.5     -     1,094.5
    Other assets(6)     2,476.4     19.4     2,495.8     2,739.1     (7.8)     2,731.3     2,451.2     (12.2)     2,439.0     2,480.5     (13.4)     2,467.1
    Total assets   $ 52,982.0   $ 528.1   $ 53,510.1   $ 54,916.8   $ 538.1   $ 55,454.9   $ 58,060.5   $ 486.8   $ 58,547.3   $ 60,029.1   $ (1.7)   $ 60,027.4
    Liabilities                                                
    Deposits(7)   $ 4,788.6   $ (55.6)   $ 4,733.0   $ 4,708.9   $ (53.9)   $ 4,655.0   $ 4,853.6   $ (47.0)   $ 4,806.6   $ 5,218.6   $ (40.9)   $ 5,177.7
    Trading liabilities at fair value - derivatives     123.0     -     123.0     46.9     -     46.9     55.7     -     55.7     41.9     -     41.9
    Credit balances of factoring clients     959.2     -     959.2     877.3     -     877.3     881.1     -     881.1     892.9     -     892.9
    Other liabilities     2,339.7     101.2     2,440.9     2,373.3     49.0     2,422.3     2,372.0     34.4     2,406.4     2,211.3     39.2     2,250.5
    Total long-term borrowings(1)     35,940.7     467.4     36,408.1     38,276.5     467.4     38,743.9     41,369.1     467.4     41,836.5     43,263.0     -     43,263.0
    Total liabilities     44,151.2     513.0     44,664.2     46,282.9     462.5     46,745.4     49,531.5     454.8     49,986.3     51,627.7     (1.7)     51,626.0
    Equity                                                
    Stockholders' equity                                                
    Common stock     2.0     -     2.0     2.0     -     2.0     2.0     -     2.0     2.0     -     2.0
    Paid-in capital     8,426.6     -     8,426.6     8,419.1     -     8,419.1     8,403.8     -     8,403.8     8,398.0     -     8,398.0
    Accumulated earnings(8)     403.9     19.7     423.6     225.0     82.8     307.8     82.9     43.3     126.2     -     -     -
    Accumulated other comprehensive (loss) income     1.1     -     1.1     (9.7)     -     (9.7)     39.2     (4.0)     35.2     -     -     -
    Treasury stock, at cost     (4.0)     -     (4.0)     (4.0)     -     (4.0)     (0.1)     -     (0.1)     -     -     -
    Total common stockholders' equity     8,829.6     19.7     8,849.3     8,632.4     82.8     8,715.2     8,527.8     39.3     8,567.1     8,400.0     -     8,400.0
    Noncontrolling interests(9)     1.2     (4.6)     (3.4)     1.5     (7.2)     (5.7)     1.2     (7.3)     (6.1)     1.4     -     1.4
    Total equity     8,830.8     15.1     8,845.9     8,633.9     75.6     8,709.5     8,529.0     32.0     8,561.0     8,401.4     -     8,401.4
    Total liabilities and equity   $ 52,982.0   $ 528.1   $ 53,510.1   $ 54,916.8   $ 538.1   $ 55,454.9   $ 58,060.5   $ 486.8   $ 58,547.3   $ 60,029.1   $ (1.7)   $ 60,027.4
                                                     
    Book Value Per Common Share                                                
    Book value per common share   $ 44.09   $ 0.10   $ 44.19   $ 43.11   $ 0.41   $ 43.52   $ 42.63   $ 0.20   $ 42.83   $ 41.99   $ -   $ 41.99
    Tangible book value per common share   $ 42.14   $ (0.04)   $ 42.10   $ 41.07   $ 0.19   $ 41.26   $ 40.43   $ (0.03)   $ 40.40   $ 39.67   $ (0.19)   $ 39.48
                                                     
    "As Originally Reported" reflects balances reported in the March 31, 2010, June 30, 2010 and September 30, 2010 Form 10-Q.
    "Corrections" reflect changes to the originally reported balances and are described below.
    "As Restated" reflects the final restated balances.
                                                     
    Corrections
    (1) The increase in cash, loans, allowance for loan losses and long term borrowings for the first three quarters of 2010 reflects the consolidation of an entity that should have been consolidated as of January 1, 2010 in accordance with the new consolation accounting guidance.
        March   June   September                                    
    Cash   $ 50.0   $ 12.0   $ 23.7                                    
    Loans   $ 434.3   $ 474.7   $ 465.2                                    
    Allowance for loan losses   $ (26.7)   $ (29.1)   $ (28.4)                                    
    Long term borrowings   $ 467.4   $ 467.4   $ 467.4                                    
    (2) Correction of the outstanding loan balance for the understatement of accretion in the first and second quarters of 2010.

    (3) The December 31, 2009 loans balance corrected due primarily to adjustment of the opening FSA balance associated with certain leveraged leases.

    (4) The allowance for loan losses corrected for the utilization of non-accretable discount in the first quarter of 2010, as discussed in footnote 8 to the previous table, Restated Consolidated Statement of Operations.
    (5) Corrections for goodwill correspond to (a) initial misapplication of FSA on certain loans, (b) an investment in partnership where income distributions received were incorrectly deferred, (c) decrease deposits due to a duplication of accrued interest payable, (d) increase the deferred tax asset valuation allowance, (e) decrease the valuation of certain leveraged leases and (f) capitalized broker deposit fees that should have been charged off at December 31, 2009. As stockholders’ equity was stated at fair value at December 31, 2009, as required by FSA, the net effect of the aforementioned corrections was an adjustment to Goodwill.
    (6) Other assets decreased due to the write-off of fees.
    (7) Decrease in deposits primarily reflects the correction of the over accrual of interest payable.
    (8) Accumulated earnings increased due to the corrections to net income.

    (9) Noncontrolling interest correction is due to the consolidation of an entity that should have been consolidated as of January 1, 2010 in accordance with the new consolidation accounting guidance.

     
    CIT GROUP INC. AND SUBSIDIARIES
    (dollars in millions)
    RESTATED SEGMENT RESULTS   Quarter Ended March 31, 2010   Quarter Ended June 30, 2010
       

    As Originally

    Reported

      Corrections   As Restated  

    As Originally

    Reported

      Corrections   As Restated
    Corporate Finance                        
    Total interest income   $ 504.0     $ 44.0     $ 548.0     $ 481.7     $ 13.0     $ 494.7  
    Total interest expense     (297.0 )     (1.8 )     (298.8 )     (273.6 )     (2.4 )     (276.0 )
    Provision for credit losses     (94.4 )     (39.5 )     (133.9 )     (109.2 )     14.0       (95.2 )
    Rental income on operating leases     8.8       -       8.8       7.3       -       7.3  
    Other income, excluding rental income     103.1       (0.5 )     102.6       205.9       0.5       206.4  
    Depreciation on operating lease equipment     (4.4 )     0.8       (3.6 )     (5.6 )     0.5       (5.1 )
    Other expenses     (79.4 )     (0.5 )     (79.9 )     (89.7 )     (0.6 )     (90.3 )

    Income before provision for income taxes

      $ 140.7     $ 2.5     $ 143.2     $ 216.8     $ 25.0     $ 241.8  

    Net income

      $ 128.3    

    $

    13.7

       

    $

    142.0

        $ 206.4    

    $

    2.4

       

    $

    208.8

     
    Transportation Finance                        
    Total interest income   $ 57.5     $ 6.2     $ 63.7     $ 53.4     $ 4.4     $ 57.8  
    Total interest expense     (258.5 )     0.2       (258.3 )     (234.6 )     0.3       (234.3 )
    Provision for credit losses     (1.3 )     -       (1.3 )     (3.0 )     -       (3.0 )
    Rental income on operating leases     299.2       7.6       306.8       316.8       (1.8 )     315.0  
    Other income, excluding rental income     22.2       -       22.2       18.2       -       18.2  
    Depreciation on operating lease equipment     (78.6 )     -       (78.6 )     (85.9 )     -       (85.9 )
    Other expenses     (39.6 )     -       (39.6 )     (45.5 )     -       (45.5 )

    Income before provision for income taxes

      $ 0.9     $ 14.0     $ 14.9     $ 19.4     $ 2.9     $ 22.3  
    Net income (loss)   $ (7.8 )  

    $

    25.1

       

    $

    17.3

        $ 25.1     $ (16.1 )   $ 9.0  
    Trade Finance                        
    Total interest income   $ 30.5     $ -     $ 30.5     $ 24.4     $ -     $ 24.4  
    Total interest expense     (38.5 )     (3.1 )     (41.6 )     (45.1 )     (4.4 )     (49.5 )
    Provision for credit losses     (33.9 )     -       (33.9 )     (12.3 )     -       (12.3 )
    Rental income on operating leases     -       -       -       -       -       -  
    Other income, excluding rental income     46.1       3.1       49.2       47.0       4.4       51.4  
    Depreciation on operating lease equipment     -       -       -       -       -       -  
    Other expenses     (32.0 )     -       (32.0 )     (33.0 )     -       (33.0 )
    Loss before provision for income taxes   $ (27.8 )   $ -     $ (27.8 )   $ (19.0 )   $ -     $ (19.0 )
    Net income (loss)   $ (27.8 )   $ 1.8     $ (26.0 )   $ (16.0 )   $ (2.1 )   $ (18.1 )
    Vendor Finance                        
    Total interest income   $ 359.6     $ 2.4     $ 362.0     $ 333.2     $ 12.0     $ 345.2  
    Total interest expense     (167.9 )     -       (167.9 )     (190.4 )     -       (190.4 )
    Provision for credit losses     (52.5 )     -       (52.5 )     (111.9 )     -       (111.9 )
    Rental income on operating leases     110.8       -       110.8       96.1       -       96.1  
    Other income, excluding rental income     27.2       11.6       38.8       26.2       7.0       33.2  
    Depreciation on operating lease equipment     (90.7 )     -       (90.7 )     (87.8 )     0.4       (87.4 )
    Other expenses     (86.9 )     -       (86.9 )     (86.3 )     -       (86.3 )
    Income (loss) before provision for income taxes   $ 99.6     $ 14.0     $ 113.6     $ (20.9 )   $ 19.4     $ (1.5 )
    Net income (loss)   $ 96.6    

    $

    (7.4

    )

     

    $

    89.2

        $ (62.1 )  

    $

    7.7

       

    $

    (54.4

    )

    Consumer                        
    Total interest income   $ 92.8     $ 3.1     $ 95.9     $ 95.8     $ 0.9     $ 96.7  
    Total interest expense     (70.9 )     4.1       (66.8 )     (64.2 )    

    4.8

          (59.4 )
    Provision for credit losses     (4.5 )     -       (4.5 )     (9.3 )    

    -

          (9.3 )
    Rental income on operating leases     -       -       -       -       -       -  
    Other income, excluding rental income     5.8       -       5.8       18.3       -       18.3  
    Depreciation on operating lease equipment     -       -       -       -       -       -  
    Other expenses     (21.5 )     -       (21.5 )     (22.7 )     -       (22.7 )
    Income before provision for income taxes   $ 1.7     $ 7.2     $ 8.9     $ 17.9     $ 5.7     $ 23.6  

    Net income

      $ 5.2     $ 3.4     $ 8.6     $ 14.2     $ 9.2     $ 23.4  
    Corporate and Other                        
    Total interest income   $ 4.6     $ -     $ 4.6     $ 5.0     $ -     $ 5.0  
    Total interest expense     (5.0 )     7.0       2.0       (5.7 )     7.8       2.1  
    Provision for credit losses     -       -       -       (15.0 )     -       (15.0 )
    Rental income on operating leases     (0.6 )     -       (0.6 )     (0.5 )     -       (0.5 )
    Other income, excluding rental income     (72.2 )     4.0       (68.2 )     15.0       (4.0 )     11.0  
    Depreciation on operating lease equipment     0.2       -       0.2       0.3       -       0.3  
    Other expenses     (2.5 )     0.7       (1.8 )     0.2       (0.2 )     -  
    Income (loss) before provision for income taxes   $ (75.5 )   $ 11.7     $ (63.8 )   $ (0.7 )   $ 3.6     $ 2.9  
    Net income (loss)   $ (97.2 )  

    $

    10.7

       

    $

    (86.5

    )

      $ (25.5 )  

    $

    38.4

       

    $

    12.9

     

    For description of Corrections, see Restated Unaudited Consolidated Statement of Operations.

                             

    "As Originally Reported" reflects balances reported in the March 31, 2010, June 30, 2010 and September 30, 2010 Form 10-Q.

    "Corrections" reflect changes to the originally reported balances and are described below.
    "As Restated" reflects the final restated balances.
     
    CIT GROUP INC. AND SUBSIDIARIES
    (dollars in millions)
    RESTATED SEGMENT RESULTS   Quarter Ended September 30, 2010   Nine Months Ended September 30, 2010
       

    As Originally

    Reported

      Corrections   As Restated  

    As Originally

    Reported

      Corrections   As Restated
    Corporate Finance                        
    Total interest income   $ 370.3     $ 9.9     $ 380.2     $ 1,397.3     $ 25.6     $ 1,422.9  
    Total interest expense     (218.3 )     (3.1 )     (221.4 )     (790.3 )     (5.9 )     (796.2 )
    Provision for credit losses     (105.6 )     0.1       (105.5 )     (332.7 )     (1.9 )     (334.6 )
    Rental income on operating leases     6.1       -       6.1       22.2       -       22.2  
    Other income, excluding rental income     132.5       20.1       152.6       443.5       18.1       461.6  
    Depreciation on operating lease equipment     (3.2 )     -       (3.2 )     (11.9 )     -       (11.9 )
    Other expenses     (69.7 )     -       (69.7 )     (238.8 )     (1.1 )     (239.9 )
    Income before provision for income taxes   $ 112.1     $ 27.0     $ 139.1     $ 489.3     $ 34.8     $ 524.1  

    Net income (loss)

      $ 87.6    

    $

    (21.5

    )

     

    $

    66.1

       

    $

    423.5

       

    $

    (6.6

    )

     

    $

    416.9

     
    Transportation Finance                        
    Total interest income   $ 51.0     $ 4.8     $ 55.8     $ 162.6     $ 14.7     $ 177.3  
    Total interest expense     (237.6 )     -       (237.6 )     (730.7 )     0.5       (730.2 )
    Provision for credit losses     (17.2 )     -       (17.2 )     (21.5 )     -       (21.5 )
    Rental income on operating leases     308.4       (0.7 )     307.7       924.4       5.1       929.5  
    Other income, excluding rental income     28.7       -       28.7       69.1       -       69.1  
    Depreciation on operating lease equipment     (82.2 )     -       (82.2 )     (246.7 )     -       (246.7 )
    Other expenses     (36.7 )     -       (36.7 )     (121.8 )     -       (121.8 )
    Income before provision for income taxes   $ 14.4     $ 4.1     $ 18.5     $ 35.4     $ 20.3     $ 55.7  
    Net income   $ 10.3     $ 1.2     $ 11.5     $ 27.3    

    $

    10.5

       

    $

    37.8

     
    Trade Finance                        
    Total interest income   $ 23.2     $ -     $ 23.2     $ 78.1     $ -     $ 78.1  
    Total interest expense     (37.7 )     -       (37.7 )     (128.8 )     -       (128.8 )
    Provision for credit losses     (11.4 )     -       (11.4 )     (57.6 )     -       (57.6 )
    Rental income on operating leases     -       -       -       -       -       -  
    Other income, excluding rental income     44.1       -       44.1       144.7       -       144.7  
    Depreciation on operating lease equipment     -       -       -       -       -       -  
    Other expenses     (30.7 )     -       (30.7 )     (95.7 )     -       (95.7 )
    Loss before provision for income taxes   $ (12.5 )   $ -     $ (12.5 )   $ (59.3 )   $ -     $ (59.3 )
    Net loss   $ (10.5 )   $ -     $ (10.5 )   $ (54.6 )   $ -     $ (54.6 )
    Vendor Finance                        
    Total interest income   $ 277.0     $ 7.4     $ 284.4     $ 969.8     $ 21.8     $ 991.6  
    Total interest expense     (160.8 )     -       (160.8 )     (519.1 )     -       (519.1 )
    Provision for credit losses     (38.5 )     -       (38.5 )     (202.9 )     -       (202.9 )
    Rental income on operating leases     83.9       -       83.9       290.8       -       290.8  
    Other income, excluding rental income     65.8       -       65.8       137.8       -       137.8  
    Depreciation on operating lease equipment     (76.3 )     -       (76.3 )     (254.8 )     0.4       (254.4 )
    Other expenses     (69.6 )     -       (69.6 )     (242.8 )     -       (242.8 )
    Income before provision for income taxes   $ 81.5     $ 7.4     $ 88.9     $ 178.8     $ 22.2     $ 201.0  

    Net income (loss)

      $ 79.1    

    $

    4.4

       

    $

    83.5

        $ 132.0    

    $

    (13.7

    )

     

    $

    118.3

     
    Consumer                        
    Total interest income   $ 88.8     $ 0.3     $ 89.1     $ 279.9     $ 1.8     $ 281.7  
    Total interest expense     (69.3 )     1.2       (68.1 )     (204.4 )     10.1       (194.3 )
    Provision for credit losses     (7.5 )     -       (7.5 )     (21.3 )     -       (21.3 )
    Rental income on operating leases     -       -       -       -       -       -  
    Other income, excluding rental income     (8.3 )     -       (8.3 )     15.8       -       15.8  
    Depreciation on operating lease equipment     -       -       -       -       -       -  
    Other expenses     (19.1 )     -       (19.1 )     (63.3 )     -       (63.3 )
    Income (loss) before provision for income taxes   $ (15.4 )   $ 1.5     $ (13.9 )   $ 6.7     $ 11.9     $ 18.6  
    Net income (loss)   $ (14.5 )   $ 1.4     $ (13.1 )   $ 7.0     $ 11.9     $ 18.9  
    Corporate and Other                        
    Total interest income   $ 5.4     $ -     $ 5.4     $ 15.0     $ -     $ 15.0  
    Total interest expense     (8.5 )     -       (8.5 )     (4.4 )     -       (4.4 )
    Provision for credit losses     15.0       -       15.0       -       -       -  
    Rental income on operating leases     -       -       -       (1.1 )     -       (1.1 )
    Other income, excluding rental income     6.6       -       6.6       (50.6 )     -       (50.6 )
    Depreciation on operating lease equipment     -       -       -       0.5       -       0.5  
    Other expenses     (3.0 )     -       (3.0 )     (4.8 )     -       (4.8 )
    Income (loss) before provision for income taxes   $ 15.5     $ -     $ 15.5     $ (45.4 )   $ -     $ (45.4 )

    Net income (loss)

      $ (20.5 )  

    $

    (1.2

    )

     

    $

    (21.7

    )

      $ (116.9 )  

    $

    21.6

       

    $

    (95.3

    )

    For description of Corrections, see Restated Unaudited Consolidated Statement of Operations.

    "As Originally Reported" reflects balances reported in the September 30, 2010 Form 10-Q.
    "Corrections" reflect changes to the originally reported balances and are described below.
    "As Restated" reflects the final restated balances.
     
    CIT GROUP INC. AND SUBSIDIARIES
    RESTATED FSA BALANCES
    (dollars in millions)
                             
    Fresh Start Accounting:   Accretable   Non-accretable
    (Discount) / Premium  

    As Originally

    Reported

      Corrections  

    As Restated

     

    As Originally

    Reported

      Corrections  

    As Restated

                             
    At September 30, 2010                        
    Loans   $ (1,927.3 )   $ (5.1 )   $ (1,932.4 )   $ (583.3 )   $ 17.7   $ (565.6 )
    Operating lease equipment, net     (3,055.1 )     2.3       (3,052.8 )     -       -     -  
    Goodwill and Intangible assets     136.3       5.1       141.4       255.1       22.3     277.4  
    Other assets     (241.2 )     -       (241.2 )     -       -     -  
    Total assets   $ (5,087.3 )   $ 2.3     $ (5,085.0 )   $ (328.2 )   $ 40.0   $ (288.2 )
    Deposits   $ 103.1     $ (55.6 )   $ 47.5     $ -     $ -   $ -  
    Long-term borrowings     (3,063.8 )     -       (3,063.8 )     -      

    -

        -  
    Other liabilities     -       -       -       220.4       -     220.4  
    Total liabilities   $ (2,960.7 )   $ (55.6 )   $ (3,016.3 )   $ 220.4     $ -   $ 220.4  
                             
    At June 30, 2010                        
    Loans   $ (2,369.8 )   $ (17.7 )   $ (2,387.5 )   $ (1,184.9 )   $ 31.4   $ (1,153.5 )
    Operating lease equipment, net     (3,109.3 )     3.7       (3,105.6 )     -       -     -  
    Goodwill and Intangible assets     168.5       5.9       174.4       239.4       38.0     277.4  
    Other assets     (261.2 )     -       (261.2 )     -       -     -  
    Total assets   $ (5,571.8 )   $ (8.1 )   $ (5,579.9 )   $ (945.5 )   $ 69.4   $ (876.1 )
    Deposits   $ 112.3     $ (53.9 )     58.4     $ -     $ -  

    $

    -

     
    Long-term borrowings     (3,195.0 )     -       (3,195.0 )     -       -     -  
    Other liabilities     -       -       -       285.4       -     285.4  
    Total liabilities   $ (3,082.7 )   $ (53.9 )   $ (3,136.6 )   $ 285.4     $ -   $ 285.4  
                             
    At March 31, 2010                        
    Loans   $ (3,030.0 )   $ (101.6 )   $ (3,131.6 )   $ (1,566.0 )   $ 92.4   $ (1,473.6 )
    Operating lease equipment, net     (3,153.4 )     2.6       (3,150.8 )     -       -     -  
    Goodwill and Intangible assets     201.5       7.6       209.1       239.4       38.0     277.4  
    Other assets     (285.2 )     0.1       (285.1 )     -       -     -  
    Total assets   $ (6,267.1 )   $ (91.3 )   $ (6,358.4 )   $ (1,326.6 )   $ 130.4   $ (1,196.2 )
    Deposits   $ 121.6     $ (46.9 )     74.7     $ -     $ -  

    $

    -

     
    Long-term borrowings     (3,284.9 )     -       (3,284.9 )     -       -     -  
    Other liabilities     -       -       -       306.7       -     306.7  
    Total liabilities   $ (3,163.3 )   $ (46.9 )   $ (3,210.2 )   $ 306.7     $ -   $ 306.7  
       

    As Originally

    Reported

      Corrections   As Revised  

    As Originally

    Reported

      Corrections   As Revised
    At December 31, 2009                        
    Loans   $ (3,507.3 )   $

    (111.9

    )   $

    (3,619.2

    )   $ (1,755.1 )  

    $

    86.4

     

    $

    (1,668.7

    )

    Operating lease equipment, net     (3,239.7 )     1.8       (3,237.9 )     -       -     -  
    Goodwill and Intangible assets     225.1       -       225.1       239.4       38.0     277.4  
    Other assets     (321.0 )     0.2       (320.8 )     -       -     -  
    Total assets   $ (6,842.9 )   $

    (109.9

    )   $

    (6,952.8

    )   $ (1,515.7 )  

    $

    124.4

     

    $

    (1,391.3

    )

    Deposits   $ 131.4     $ (40.9 )     90.5     $ -     $ -  

    $

    -

     
    Long-term borrowings     (3,396.5 )     -       (3,396.5 )     -       -     -  
    Other liabilities     -       -       -       336.6       -     336.6  
    Total liabilities   $ (3,265.1 )   $ (40.9 )   $ (3,306.0 )   $ 336.6     $ -   $ 336.6  
                             
    "As Originally Reported" reflects balances reported in the March 31, 2010, June 30, 2010 and September 30, 2010 Form 10-Q.
    "Corrections" reflect changes to the originally reported balances and are described below.
    "As Restated" reflects the final restated balances.
     
    CIT GROUP INC. AND SUBSIDIARIES    
    (dollars in millions)    
                                 
    NON-GAAP DISCLOSURES
    Non-GAAP financial measures disclosed by management are meant to provide additional information and insight relative to business trends to investors and, in certain cases, to present financial information as measured by rating agencies and other users of financial information. These measures are not in accordance with, or a substitute for, GAAP and may be different from, or inconsistent with, non-GAAP financial measures used by other companies.
        Quarter Ended       Year Ended                
       

    December 31,

         

    December 31,

                   
          2010         2010                
    Total net revenues(1)                            
    Interest income   $ 754.0       $ 3,720.6                
    Rental income on operating leases     398.3         1,639.7                
    Finance revenue     1,152.3         5,360.3                
    Interest expense     (703.7)         (3,076.7)                
    Depreciation on operating lease equipment     (166.6)         (679.1)                
    Net finance revenue     282.0         1,604.5                
    Other income     223.8         1,002.2                
    Total net revenues   $ 505.8       $ 2,606.7                
                                 
        Quarter Ended June 30, 2010       Quarter Ended March 31, 2010
        As Originally Reported   Corrections   As Restated       As Originally Reported   Corrections   As Restated

    Total net revenues(1)

                               
    Interest income   $ 993.5   $ 30.3   $ 1,023.8       $ 1,049.0   $ 55.7   $ 1,104.7
    Rental income on operating leases     419.7     (1.8)     417.9         418.2     7.6     425.8
    Finance revenue     1,413.2     28.5     1,441.7         1,467.2     63.3     1,530.5
    Interest expense     (813.6)     6.1     (807.5)         (837.8)     6.4     (831.4)
    Depreciation on operating lease equipment     (179.0)     0.9     (178.1)         (173.5)     0.8     (172.7)
    Net finance revenue     420.6     35.5     456.1         455.9     70.5     526.4
    Other income     330.6     7.9     338.5         132.2     18.2     150.4
    Total net revenues   $ 751.2   $ 43.4   $ 794.6       $ 588.1   $ 88.7   $ 676.8
                                 
        Quarter Ended September 30, 2010       Nine Months Ended September 30, 2010
        As Originally Reported   Corrections   As Restated       As Originally Reported   Corrections   As Restated

    Total net revenues(1)

                               
    Interest income   $ 815.7   $ 22.4   $ 838.1       $ 2,902.7   $ 63.9   $ 2,966.6
    Rental income on operating leases     398.4     (0.7)     397.7         1,236.3     5.1     1,241.4
    Finance revenue     1,214.1     21.7     1,235.8         4,139.0     69.0     4,208.0
    Interest expense     (732.2)     (1.9)     (734.1)         (2,377.7)     4.7     (2,373.0)
    Depreciation on operating lease equipment     (161.7)     -     (161.7)         (512.9)     0.4     (512.5)
    Net finance revenue     320.2     19.8     340.0         1,248.4     74.1     1,322.5
    Other income     269.4     20.1     289.5         760.3     18.1     778.4
    Total net revenues   $ 589.6   $ 39.9   $ 629.5       $ 2,008.7   $ 92.2   $ 2,100.9
                                 
    Net Finance Revenue as a % of Average Earning Assets        
        Quarters Ended   Year Ended        
        December 31,   September 30,   June 30,   March 31,   December 31,        
        2010   2010   2010   2010   2010        
            (Restated)   (Restated)   (Restated)            
    GAAP - net finance revenue %     3.04%     3.44%     4.32%   4.67%     3.93%        
    FSA     -2.94%     -2.74%     -3.95%   -4.07%     -3.48%        
    Secured credit facility prepayment penalty fee     0.46%     0.25%     0.36%   0.11%     0.29%        
    Non-GAAP - adjusted net finance revenue %     0.56%     0.95%     0.73%   0.71%     0.74%        
                                 

    (1) Total net revenues are combination of net finance revenues after depreciation on operating leases and other income.

     

     

    Contact:

    CIT MEDIA RELATIONS:
    C. Curtis Ritter, 973-740-5390
    Vice President - Director of External and Internal Communications & Media Relations
    Curt.Ritter@cit.com
    or
    CIT INVESTOR RELATIONS:
    Ken Brause, 212-771-9650
    Executive Vice President
    Ken.Brause@cit.com

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