CIT Group

CIT Group was an American financial services company whose roots lay in commercial finance. Henry Ittleson founded the Commercial Credit and Investment Company in St. Louis in 1908 to finance accounts receivable for small businesses. The company moved to New York in 1915 and adopted the name Commercial Investment Trust, later shortened to CIT. Its early business developed around lending to wholesalers, manufacturers and consumer-goods producers, with the company adding automobile finance in 1916 through an arrangement with Studebaker. It subsequently financed consumer appliances, furniture, radios and other durable goods, helping establish a business model centered on lending against commercial transactions and productive assets. CIT became a public company in 1924 and expanded into factoring in 1928. It also developed an international presence, although its foreign operations were later reduced, including the closure of its German business in 1934. Over the following decades, CIT pursued diversification through banking, leasing, consumer credit and several non-financial acquisitions. It acquired Picker X-Ray, Gibson Greeting Cards and other manufacturing-related businesses during the 1950s and 1960s, but later divested those operations. In 1969, it entered personal lending, home-equity lending and leasing while leaving automobile finance. Regulatory restrictions led it to sell its bank in 1979. Ownership changed repeatedly. RCA acquired CIT in 1980, Manufacturers Hanover Trust acquired it in 1984, and Dai-Ichi Kangyo Bank obtained a majority stake in 1989. CIT returned to the public markets in 1997, then expanded substantially through its 1999 acquisition of Newcourt Credit Group, a large leasing company. Tyco International acquired CIT in 2001 and renamed it Tyco Capital, but Tyco later divested the business through a 2002 public offering that restored the CIT Group identity. During the middle of the 2000s, CIT broadened its exposure to education lending, subprime mortgages, equipment finance and other specialized markets. Under chief executive Jeff Peek, its assets grew rapidly, but several acquisitions and lending businesses performed poorly as credit conditions deteriorated. CIT sold its home-lending division and a manufactured-housing loan portfolio in 2008. It became a bank holding company later that year and received capital through the Troubled Asset Relief Program. After the Federal Deposit Insurance Corporation declined to provide requested loan guarantees in July 2009, CIT obtained additional support from bondholders but filed for prepackaged Chapter 11 bankruptcy protection on November 1, 2009. The company emerged in December 2009 after a financial and governance restructuring. Following reorganization, CIT rebuilt itself around commercial lending, leasing, factoring, treasury services and banking. John Thain became chairman and chief executive in 2010, followed by Ellen Alemany in 2016. Major transactions included the acquisition of Direct Capital in 2014, OneWest Bank in 2015 and Mutual of Omaha Bank in 2020. CIT also sold businesses to simplify its portfolio, including its aircraft-leasing operation to Avolon in 2017 and European rail leasing in 2018. Its rail-leasing activities in North America operated under reporting marks including CEFX and CITX. First Citizens BancShares completed its acquisition of CIT in January 2022. CIT was subsequently integrated into First Citizens rather than continuing as an independent publicly traded company. Its banking and commercial-finance capabilities became part of the acquiring organization, marking the end of CIT Group as a standalone listed enterprise.

CIT began on February 11, 1908, when Henry Ittleson established the Commercial Credit and Investment Company in St. Louis to provide accounts-receivable finance to small companies. After moving to New York in 1915, the company adopted the Commercial Investment Trust name and broadened its lending to wholesalers and producers of consumer goods. Its 1916 automobile-finance agreement with Studebaker was an early example of manufacturer-linked vehicle finance. During World War I, CIT financed the production of submarine chasers, while its consumer division supported radio purchases through an arrangement involving Thomas Edison, Inc. The postwar consumer boom expanded CIT's appliance, furniture and automobile-finance businesses. The company incorporated in Delaware and completed an initial public offering on the New York Stock Exchange in 1924. It added factoring in 1928 and entered Europe in 1929, but closed its German operations in 1934 as international tensions increased. During World War II, CIT supported employees who entered military service with compensation and reemployment protections. Net income rose substantially between 1947 and 1950. CIT pursued diversification in the 1950s and 1960s, acquiring businesses such as Picker X-Ray and Gibson Greeting Cards and taking a stake in Meadow Brook Bank. In 1969, it entered personal and home-equity lending and leasing while exiting automobile finance. Banking regulation forced the sale of National Bank of North America in 1979. RCA acquired CIT in 1980 and sold its manufacturing subsidiaries. Manufacturers Hanover Trust purchased CIT in 1984, and Dai-Ichi Kangyo Bank acquired 60 percent of the company in 1989. The company expanded its commercial-finance franchise in the 1990s, including through the acquisition of Fidelcor Business Credit Corporation in 1991. It returned to public ownership in 1997 through an offering that raised $850 million and acquired Newcourt Credit Group in 1999 for approximately $4.2 billion. Newcourt made CIT one of the largest publicly traded leasing businesses of its time. Tyco International acquired CIT in 2001 and renamed it Tyco Capital. Tyco later separated the business through a 2002 initial public offering. CIT then expanded in technology leasing, education lending, subprime mortgages and other specialized finance. Rapid asset growth before the 2008 financial crisis left the company exposed to deteriorating credit conditions. It sold its home-lending unit and manufactured-housing portfolio in 2008, became a bank holding company and received TARP support. After unsuccessful efforts to obtain additional federal guarantees and a bondholder financing package, CIT filed for Chapter 11 in November 2009 and emerged the following month. The reorganized company appointed new independent directors, Peter J. Tobin as interim chief executive and John Thain as chairman and chief executive. CIT subsequently emphasized commercial banking, equipment finance, factoring, treasury management and specialized lending. It acquired Direct Capital, OneWest Bank and Mutual of Omaha Bank, while disposing of aircraft leasing, reverse-mortgage and European rail assets. First Citizens BancShares acquired CIT in January 2022, bringing its standalone corporate history to a close and incorporating its businesses into First Citizens.

1. 2022Acquired by First Citizens BancShares

   First Citizens completed the acquisition and integrated CIT into its operations.

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2. 2020Mutual of Omaha Bank acquired

   The acquisition strengthened CIT's commercial and retail banking capabilities.

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3. 2015OneWest Bank acquired

   CIT acquired OneWest Bank in a cash-and-stock transaction.

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4. 2009Chapter 11 restructuring

   CIT filed for prepackaged Chapter 11 protection in November and emerged in December.

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5. 2002Tyco divested CIT

   Tyco separated the business through a public offering of CIT shares.

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6. 2001Acquired by Tyco

   Tyco International acquired CIT and renamed it Tyco Capital.

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7. 1999Acquired Newcourt Credit Group

   The acquisition expanded CIT's leasing platform and international commercial-finance scale.

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8. 1997Returned to public markets

   CIT completed an initial public offering that raised $850 million.

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9. 1928Factoring business launched

   CIT began offering factoring services.

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10. 1924Initial public offering

    CIT incorporated in Delaware and became publicly traded on the New York Stock Exchange.

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11. 1916Automobile finance added

    CIT entered automobile finance through an agreement with Studebaker.

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12. 1915Headquarters moved to New York and name changed

    The company moved to New York City and became Commercial Investment Trust, later known as CIT.

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13. 1908Company founded in St. Louis

    Henry Ittleson founded the Commercial Credit and Investment Company to finance small-business receivables.

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Specialist commercial-finance and banking provider focused on small businesses, middle-market companies and asset-based lending.

• Commercial lendingBusiness finance1908

  CIT provided loans and other credit facilities to small businesses and middle-market companies. Its commercial-finance model included working-capital support, receivables-based lending and financing tied to business assets and operating requirements.

• Equipment finance and leasingAsset finance1969

  Equipment finance was a core CIT activity, covering business machinery, technology and other productive assets. The company also financed transportation assets, including railcars and locomotives, with North American rail activities associated with the CEFX and CITX reporting marks.

• FactoringWorking-capital finance1928

  CIT entered factoring in 1928, purchasing or financing eligible receivables to provide businesses with liquidity and credit-management support. The service reflected the company's original focus on receivables finance.

• Commercial bankingBanking2008

  Through CIT Bank and acquired banking platforms, the company offered deposit, lending, cash-management and treasury services to businesses and selected consumers. Its direct-bank structure complemented its specialized commercial-finance operations.

• Transportation financeTransportation finance

  CIT financed and leased transportation assets, including rail equipment and aircraft. It later sold the aircraft-leasing business and its European rail-leasing operation, retaining a primarily North American commercial-finance focus before its acquisition by First Citizens.

• 2022Acquisition by First Citizens BancSharesM&A

  CIT remained a specialized commercial-finance and banking company after rebuilding from its 2009 bankruptcy, while First Citizens pursued expansion.

  What changed. First Citizens BancShares acquired CIT and integrated its operations.

  Aftermath. CIT ceased to operate as an independent listed company and became part of First Citizens.

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• 2017Sale of aircraft leasing businessM&A

  CIT reviewed its portfolio and prioritized businesses more closely aligned with its commercial-banking and specialized-finance strategy.

  What changed. The company sold its aircraft-leasing operation to Avolon.

  Aftermath. The disposal reduced CIT's exposure to aircraft ownership and leasing.

  Transaction value. $10.38 billion (April 2017)

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• 2015Acquisition of OneWest BankM&A

  CIT sought to expand its banking platform and strengthen its deposit and commercial-banking capabilities.

  What changed. CIT acquired OneWest Bank using cash and stock.

  Aftermath. The transaction increased CIT's banking scale, although CIT later sold the Financial Freedom reverse-mortgage business obtained through the deal.

  Transaction value. $3.4 billion (August 2015)

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• 2009Prepackaged Chapter 11 restructuringStrategy

  CIT faced prolonged losses, constrained funding and unsuccessful efforts to obtain additional federal loan guarantees.

  What changed. CIT filed for Chapter 11 protection on November 1 after securing a restructuring framework with key creditors.

  Aftermath. The company emerged on December 10 with a restructured balance sheet and seven new independent directors.

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• 2008Became a bank holding companyStrategy

  CIT sought access to capital-support mechanisms during the global financial crisis and converted to bank-holding-company status.

  What changed. The company changed its regulatory structure and received $2.33 billion through the Troubled Asset Relief Program.

  Aftermath. The move did not resolve CIT's liquidity and credit problems, and the company later pursued bondholder support and bankruptcy reorganization.

  TARP funding. $2.33 billion (December 2008)

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• 2009Bankruptcy and federal-support controversyControversy

  CIT's exposure to weakened lending businesses and difficulty obtaining additional federal guarantees culminated in a prepackaged Chapter 11 filing. The company had already become a bank holding company and received TARP funding, making its failure and restructuring part of the broader financial-crisis debate.

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• 2022First Citizens BancShares completes acquisition of CIT

  First Citizens acquired CIT and integrated its banking and commercial-finance activities, ending CIT's independent public-company status.

  M&ALeadership change
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• 2020CIT acquires Mutual of Omaha Bank

  CIT expanded its banking platform through the acquisition of Mutual of Omaha Bank.

  M&A
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• 2018CIT sells European rail leasing business

  The disposal of NACCO ended CIT's overseas rail-leasing operations.

  M&A
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• 2017CIT sells aircraft leasing business to Avolon

  CIT agreed to sell its aircraft-leasing operation as part of a portfolio simplification strategy.

  M&A
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• 2016Ellen Alemany succeeds John Thain as chief executive

  Ellen Alemany became CIT's chief executive after Thain's retirement.

  Leadership change
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• 2015CIT acquires OneWest Bank

  CIT completed the acquisition of OneWest Bank in a transaction combining cash and stock.

  M&A
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• 2009CIT emerges from bankruptcy protection

  The company completed its court-supervised restructuring and resumed operations as a recapitalized financial institution.

  Bankruptcy
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1. CIT Group
2. CIT official website