CIT Reports Fourth Quarter and Full Year Results; Completes Strategic Transition to Bank Holding Company.* Fourth quarter loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $0.54 per share driven by credit reserve build and lower interest margin * Raised over $4 billion of bank regulatory capital in December NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- CIT n. 1. A citizen; an inhabitant of a city; a pert townsman; - used contemptuously. Which past endurance sting the tender cit. - Emerson. Group Inc. (NYSE NYSE See: New York Stock Exchange : CIT), a bank holding company, today reported a loss from continuing operations of $139.4 million ($159.8 million after preferred dividends preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) ), or $0.54 per share, for the fourth quarter of 2008, compared to income from continuing operations of $62.4 million ($54.9 million after preferred dividends), or $0.29 per share for the comparable 2007 quarter. The fourth quarter culminated with the Company's strategic transition to a bank holding company and was marked by a number of significant capital and funding transactions, which strengthens our position for the future. Through the capital initiatives executed as part of the bank holding company process, we created over $4 billion of regulatory capital and improved our tangible capital to managed assets to 14.3% at December 31, 2008 from 9.2% at September 30, 2008. We ended the year with $8.4 billion of cash, up from $7.4 billion at September 30, 2008. Our operating results included pre-tax gains on debt related retirements and lower operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , but were hampered by weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. credit trends that lead to higher provisioning for credit losses,
charges to write-off certain account reconciliation balances in our
European Vendor Finance operations The execution of the joint finance mission to provide financial advice and guidance, support of the procurement process, providing pay support, and providing disbursing support.See also financial management. , costs of becoming a bank holding
company and continued compression of interest margins.
"In 2008, where agility and decisiveness were essential, CIT demonstrated tremendous fortitude Fortitude See also Bravery. Fratricide (See MURDER.) Asia despite torture, refuses to deny Moses. [Islam: Walsh Classical, 35] Calantha fulfills wifely and queenly duties despite losses. [Br. Lit. undertaking a fundamental and strategic transformation," said Jeffrey M. Peek, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "We exited our consumer businesses, secured more than $18 billion in liquidity, realigned our balance sheet to dramatically improve regulatory capital ratios, and converted to a bank holding company. Although our fourth quarter results were disappointing overall, they reflect the current economic realities. "We enter this year with leading middle market franchises, a strong balance sheet and plans to leverage our new status as a bank holding company to further stabilize stabilize See peg. our funding model. Our commitment to provide financing to our middle market and small business clients will not waver as we work to return CIT to profitability." For the full year 2008, we recorded a loss from continuing operations of $644.6 million ($709.3 million after preferred dividends), or $2.74 per share, compared to income of $792.0 million ($762.0 million after preferred dividends), or $3.93 per share for 2007. These results reflect the Company's primary focus on managing for liquidity and include the write-off of goodwill and intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. in Vendor Finance, higher credit costs, and higher funding costs, partially offset by lower operating expenses. Bank Holding Company Transformation We believe that being a bank holding company will provide CIT with expanded opportunities for funding and greater access to capital, which will lead to a more stable and diverse long-term funding model. Currently we are in the process of furthering our bank strategy. We have hired regulatory experts to assist in our transition and incurred related operating expenses during the fourth quarter of 2008 in this transition. Capital Raising Actions During the fourth quarter, we strengthened our capital position and increased bank regulatory capital through the following transactions: * Sold $2.33 billion of CIT perpetual preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. and related warrants to the U.S. Department of the Treasury as a participant in the federal government's Capital Purchase Program, part of the Troubled Assets Relief Program (TARP). * Raised approximately $328 million of common equity, net of commissions paid, through the sale of 86.25 million common shares. * Completed an exchange offer for our Equity Units that resulted in the extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of approximately $490 million of senior debt in exchange for the issuance of 14 million shares of common stock and payment of approximately $80 million of cash to participating investors. The transaction generated $413 million of additional Tier I capital, including a gain on debt extinguishment of approximately $99 million. * Issued $1.15 billion of new subordinated notes, which qualify as Tier II capital, and paid approximately $550 million in cash in exchange for $1.7 billion of previously outstanding senior notes. * Purchased for $250 million an aggregate equivalent of approximately $360 million of Euro- and Sterling-denominated senior unsecured notes, which resulted in a $110 million pre-tax gain. These actions improved our ratio of total tangible capital to managed assets, which includes securitized securitized Of, related to, or being debt securities that are secured with assets. For example, mortgage purchase bonds are secured by mortgages that have been purchased with the bond issue's proceeds. assets, at December 31, 2008 to 14.3% from 9.2% at September 30, 2008 and resulted in estimated Tier I and Total Capital Ratios for regulatory purposes of 9.8% and 13.4% at December 31, 2008, to be finalized See finalization. in our Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . Liquidity Actions We continued to focus on liquidity by executing on a number of other initiatives during the quarter including: * Reduced managed assets by 5% ($3.3 billion) through the combination of lower origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real volume, seasonal factors, and the sale or syndication of approximately $875 million of assets (primarily Vendor Finance loans and commercial aircraft). * Renewed a $1.3 billion Trade Finance funding facility for one year. * Extended the maturity of an equipment conduit conduit /con·du·it/ (kon´doo-it) channel. ileal conduit the surgical anastomosis of the ureters to one end of a detached segment of ileum, the other end being used to form a stoma on the to the first quarter of 2009 and concurrently reduced its size from $1.25 billion to $650 million reflecting current volume levels. * Increased outstanding deposits at CIT Bank by approximately $200 million. * Borrowed approximately $150 million through a secured aircraft financing facility, under which we expect to finance an additional $0.7 billion of Airbus plane deliveries in 2009. We ended the quarter with $8.4 billion of cash, up from $7.4 billion at September 30, 2008, including $1.2 billion of cash and short-term investments at CIT Bank (available to fund commercial originations by the bank). As we implement our transition to a bank holding company, we continue to maintain a plan that we expect will satisfy our funding requirements, estimated at $12 billion for 2009, without accessing the unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. markets. In addition, we have recently applied for the Temporary Liquidity Guarantee Program of the Federal Deposit Insurance Corporation Federal Deposit Insurance Corporation (FDIC), an independent U.S. federal executive agency designed to promote public confidence in banks and to provide insurance coverage for bank deposits up to $100,000. . Participation in this program would enable us to issue government-guaranteed debt, which would significantly enhance our funding flexibility and support business growth. Consolidated Financial Highlights of Continuing Operations: The following discussions and accompanying financial statements and tables do not incorporate potential presentation changes to conform with bank holding company reporting requirements that we plan to include when we file our annual report on Form 10-K. The changes will include changing the order of line items on the financial statements and reclassifying certain balances within the line items. The fourth quarter results reflect our continued focus on maximizing liquidity and managing credit risk in the current environment. During the quarter, we increased the reserve for credit losses by approximately $240 million, as economic conditions continued to weaken. We continued to lower salaries and operating expenses, reducing them by approximately $18 million from last quarter, and initiated further cost savings actions that are anticipated to result in savings of $40 million in 2009. The quarter also included the following noteworthy items that in the aggregate, including a true-up of the tax rate for the year, favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impacted results by approximately $10 million on an after tax basis: * Pre-tax gains of approximately $216 million primarily relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the early extinguishment of debt previously mentioned. * A pre-tax charge of $82 million in the European Vendor Finance business resulting from the remediation of reconciliation items that relate primarily to a number of prior year periods. These adjustments are reflected in several lines on the income statement, most notably a $7.5 million reduction to finance revenue, $24.5 million decrease to other income, $32.7 million increase to operating expenses and $12.7 million increase to goodwill and intangible assets impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges. * A work force reduction and facility closing charge of $52 million pre-tax, primarily reflecting the elimination of approximately 185 employees. Employee headcount for continuing operations totaled approximately 4,995 at December 31, 2008, down from 5,245 at September 30, 2008, and 6,375 a year ago. * Costs of approximately $31 million related to our transition to a bank holding company. * A $15 million pre-tax valuation charge related to approximately $33 million due from Lehman Brothers Lehman Brothers Holdings Inc. (NYSE: LEH), founded in 1850, is a diversified, global financial services firm. It is a participant in investment banking, equity and fixed income sales, research and trading, investment management, private equity, and private banking. on previously terminated derivative transactions. Net Finance Revenue * Finance revenue decreased 8% from last quarter reflecting lower operating lease Operating Lease A lease contract that allows the use of an asset, but does not convey rights similar to ownership of the asset. Notes: An operating lease is not capitalized it is accounted for as a rental expense. rental rates, higher levels of non-accrual assets, the repricing Repricing To change the price of an asset. In derivatives, it sometimes refers to the exchange of options of with different strike prices. repricing of certain assets at lower rates, the impact of foreign exchange rates and lower asset levels. * Interest expense increased 4% over last quarter as lower debt balances associated with lower asset levels and the impact of lower market interest rates were more than offset by the incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. impact of higher funding costs associated with new and renewed facilities. * Net finance revenue as a percentage of average earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin was 1.38%, down from 2.20% last quarter, primarily reflecting higher funding and liquidity costs, including higher conduit refinancing Refinancing An extension and/or increase in amount of existing debt. costs, and to a lesser extent, lower operating lease margins, higher nonaccruals, foreign exchange rates, asset repricings and remediation items noted above. * Operating lease net revenue was 5.97% of average operating leases, down from 6.60% last quarter, as a weakening economy drove rail utilization down. Other Income * Factoring commissions declined from last quarter reflecting the weakened retail environment and lower factoring volumes. * Commercial loan sales and syndication volume and the respective gains and fees were down from last quarter consistent with the constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. market conditions. * Equipment gains were up from last quarter, primarily reflecting sales of aircraft. * The current quarter fees and other income included $61 million of impairment charges on previously foreclosed, and interests in, commercial real estate properties, $25 million of write-offs related to the reconciliation items noted above and the above mentioned $15 million valuation charge on a receivable due from a Lehman Brothers entity, partially offset by $27 million of gains on derivatives that do not qualify for hedge accounting Why is hedge accounting necessary? Many financial institutions and corporate businesses (entities) use derivative financial instruments to hedge their exposure to different risks (eg interest rate risk, foreign exchange risk, commodity risk, etc). treatment, including foreign exchange derivatives and swaps that previously hedged our commercial paper program. Credit Quality - Commercial * Net charge-offs as a percentage of average finance receivables were 1.42% for the commercial businesses, up from 0.95% last quarter. The current quarter increase primarily reflects higher charge-offs in Corporate Finance, most notably in the communications, media and entertainment and commercial real estate sectors, and in Vendor Finance. The commercial net charge-off ratio for the full year of 2008 was 0.89%. * Non-performing assets for the commercial businesses were 3.06% of finance receivables at December 31, 2008, up from 2.08% at September 30, 2008, driven by increases in Corporate Finance in the same industries as noted above. Commercial non-performing assets are specifically reserved to estimated realizable value based on assessments of underlying collateral and cash flows. * Historically, we reported 60+ day owned delinquencies including non-accrual loans, which increased to 3.29% from 1.96% last quarter. To conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" bank reporting practices, we are now reporting 60+ day owned delinquencies excluding non-accrual loans. On this basis, past dues increased to 1.03% of finance receivables, from 0.53% last quarter. * Credit reserves for the commercial segments increased by $222 million to $858 million at December 31, 2008. The reserve as a percentage of finance receivables increased to 2.11% from 1.52% last quarter. Credit Quality - Consumer Segment * Net charge-offs in the Consumer segment were $31 million, essentially flat with the prior quarter, and primarily reflect losses in the private student loan portfolio. * 60+ day owned delinquencies including non-accrual loans increased to 5.63% of finance receivables, from 5.10% last quarter. 60+ day owned delinquencies excluding non-accrual loans increased to 5.47% of finance receivables, from 4.98% last quarter. Non-performing assets increased slightly. * Credit reserves for the Consumer segment, primarily relating to private student loans, were increased by $18 million during the quarter to $238 million. Salaries and General Operating Expenses * Expenses in the quarter were $288 million before $33 million of charges related to the reconciliation balances in Vendor Finance and $31 million for expenses associated with the transition to a bank holding company. On this basis, expenses were down $18 million from last quarter and $75 million (20%) from the year-ago quarter, primarily reflecting lower headcount. * Charges for severance and the disposition of facilities during the fourth quarter ($52 million) brought the year to date charges to approximately $166 million and reflect reductions of over 1,100 employees, approximately 17% of the workforce. A portion of the savings from these actions will be reinvested in infrastructure and resources to support bank compliance requirements Compliance requirements are a series of directives established by United States Federal government agencies that summarize hundreds of Federal laws and regulations applicable to Federal assistance (also known as Federal aid or Federal funds). . Income Tax Provision * The tax benefit on the loss from continuing operations for the quarter was favorably impacted by the gain on the extinguishment of the mandatory convertible securities mandatory convertible security A debt security that automatically converts to another security, generally shares of common stock, on a specified date. , which was not taxable, and the resolution of certain tax audit matters. These favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. items were partially offset by a true-up to reflect the actual mix of foreign and domestic results from estimates used in the third quarter effective tax rate. Assets * Total managed assets were $67.8 billion, down $3.3 billion (5%) from last quarter. Estimated risk weighted assets, which include both on-balance sheet and off-balance sheet assets and unfunded commitments in accordance with Basel I Basel I is the term which refers to a round of deliberations by central bankers from around the world, and in 1988, the Basel Committee (BCBS) in Basel, Switzerland, published a set of minimal capital requirements for banks. requirements, were $78 billion at December 31, 2008. * Origination volume in our commercial businesses, excluding factoring, was $3.3 billion for the quarter, down from $3.9 billion last quarter, due primarily to economic conditions and our balancing of liquidity with customer needs. Transportation Finance was the only segment to report a sequential period volume increase primarily due to scheduled aircraft deliveries. * During the quarter we restructured a securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. conduit that resulted in bringing $1.5 billion of previously securitized assets back on the balance sheet. * Loan sales and syndication activity for the current quarter totaled $0.5 billion, flat with the prior quarter, reflecting continued illiquid Illiquid An asset or security that cannot be converted into cash very quickly (or near prevailing market prices). Notes: A house is a good example of an illiquid asset. See also: Cash, Liquidity Illiquid In the context of finance. markets. * Financing and leasing assets held for sale were $0.2 billion at December 31, 2008, down from $0.6 billion last quarter due to completed sales. * Commercial receivables at CIT Bank grew approximately $135 million during the quarter to $1.7 billion, reflecting approximately $283 million of originations. Common Stock * We ended 2008 with approximately 389 million common shares outstanding, up from 285 million at September 30, 2008. The increase primarily relates to the sale of 86.25 million common shares in a public offering and the issuance of approximately 14 million shares in the Equity Unit exchange offer, both in December. * Average common shares outstanding for the fourth quarter increased to 295 million from 285 million for the prior quarter due to the impact of the issuances noted above. * Given our current income levels and stock price, the earnings per share and other per share calculations do not include the potential dilutive effects Dilutive effect Result of a transaction that decreases earnings per common share (EPS). of outstanding convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". (convertible into 45.5 million common shares) and other potentially dilutive securities. * In conjunction with the TARP funding, we issued warrants to purchase approximately 88.7 million shares of common stock at an initial exercise price of $3.94. Segment Results: The following discussions reflect a change in the methodology for allocating the provision for credit loss, whereby certain amounts previously included in Corporate and Other are now in the results of the business segments. This change principally increased the amounts allocated to Corporate Finance, while the impact on the other segments were not as pronounced. Corporate Finance * Total net revenues (the sum of net finance revenue and other income) decreased from last quarter due to approximately $61 million of impairment charges on real estate assets, lower rates and a smaller average asset base. * Net finance revenue as a percentage of average earning assets after depreciation remained relatively stable with the previous quarter. * New business volume was $0.8 billion for the quarter, down 44% from last quarter, reflecting both weak market conditions and liquidity management. * Credit metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. , including net charge-offs, non-performing and delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. accounts weakened this quarter. Industry groups that were most affected included communications, media and entertainment and commercial real estate. * Due to the significant provision for credit losses, returns were negative for the quarter. Transportation Finance * Total net revenues were down slightly from last quarter, as increased gains from aircraft sales were offset by lower lease rates, primarily in rail. Our commercial aircraft portfolio was 100% leased and rail utilization declined slightly to 95%. * Net finance revenue as a percentage of average earning assets after depreciation was down from last quarter on lower operating lease margins and adjustments on certain lease residual balances. * Volume increased from last quarter as we took delivery of and placed 11 aircraft. * Credit quality remained stable. There were no charge-offs and delinquencies and non-performing assets remained at low levels. * Return on risk-adjusted capital was 19% compared to 16% last quarter. Trade Finance * Total net revenues were down 4% from last quarter, reflecting the weak retail environment. Both factoring commissions and volumes were down from the third quarter. * Net finance revenue as a percentage of average earning assets declined modestly from last quarter. * Net charge-offs trended up over last quarter as the weak retail and manufacturing environments weighed on credit quality while delinquencies and non-performing asset balances were relatively flat. * Return on risk-adjusted capital decreased slightly to 12% from last quarter on lower revenues noted above. Vendor Finance * Segment results for the quarter include an $82 million pre-tax charge associated with the remediation of reconciliation items in the European Vendor Finance business. The following points exclude this remediation charge. * Fourth quarter total net revenues were up $7 million sequentially on increased syndication fees and higher end-of-lease gains. * Net finance revenue after depreciation was down from the prior quarter as a result of lower assets. * New business volume was essentially flat with last quarter as we strategically managed volume. * Net charge-offs and delinquencies trended up over last quarter as a result of bringing previously securitized assets back on balance sheet, but non-performing assets were lower. * Excluding the reconciliation remediation charge, return on risk-adjusted capital was 14%. Consumer * Total net revenues were down from last quarter reflecting assets that repriced at lower rates, higher funding costs and lower assets, as we no longer originate o·rig·i·nate v. 1. To bring into being; create. 2. To come into being; start. student loans. * Net charge-offs increased nominally from last quarter. Delinquencies were up reflecting a modest increase in U.S. government-guaranteed student loans, while non-performing assets rose in the private student loan portfolio. * Reserves for credit losses were increased by $18 million, relating to the private student loan portfolio. * Our student loan portfolio decreased by $175 million during the quarter. We continue to service the $12.2 billion portfolio, $11.4 billion of which are U.S. government-guaranteed loans. * Returns were negative for the quarter on this liquidating portfolio. Corporate and Other * The current quarter includes the pre-tax gain of $216 million from debt-related transactions, the continued drag from interest costs on debt associated with discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. and costs incurred for maintaining higher than average cash balances for liquidity. * Corporate and other results also include $20.4 million of preferred stock dividends. Discontinued Operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. (Home Lending) * We expect to conclude the transfer of servicing operations and receive final payment of approximately $45 million from the sale of the home lending business as scheduled during the first quarter of 2009. * Results for the quarter included the reversal of $29 million of excess accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). . * The unfavorable tax rate on discontinued operations was principally due to an increase in our valuation allowance against net operating losses Net operating losses Losses that a firm can take advantage of to reduce taxes. . Conference Call and Webcast: We will discuss this quarter's results, as well as ongoing strategy, on a conference call and audio webcast today at 9:00 am (EST EST electroshock therapy. EST abbr. electroshock therapy ). Interested parties may access the conference call live today 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 webcast at the following website: http://ir.cit.com. An audio replay of the call will be available beginning shortly after the conclusion of the call until 11:59 pm (EST) February 5, 2009, by dialing 888-286-8010 for U.S. and Canadian callers or 617-801-6888 for international callers with the access code 57820406, or at the following website: http://ir.cit.com. About CIT: CIT (NYSE: CIT) is a bank holding company with more than $60 billion in managed assets that provides financial products and advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal to small and middle market businesses. Operating in more than 50 countries across 30 industries, CIT provides an unparalleled combination of relationship, intellectual and financial capital to its customers worldwide. CIT maintains leadership positions in aerospace, equipment and rail leasing, small business and middle market lending, vendor financing Vendor Financing The lending of money by a company to one of its customers so that the customer can buy products from it. By doing this, the company increases its sales even though it is basically buying its own products. and factoring. Founded in 1908 and headquartered in New York, CIT is a member of the S&P 500 and Fortune 500. www.cit.com. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release contains forward-looking statements within the meaning of applicable federal securities laws, including the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, 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 due to numerous important factors that are described in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2007, as updated by our Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended September 30, 2008 and our Current Reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. . Many of these risks, uncertainties and assumptions are beyond our control, and may cause our actual results and performance to differ materially from our expectations. Important factors that could cause our actual results to be materially different from our expectations include, among others, capital markets liquidity; risks of and/or actual economic slowdown, downturn or recession; industry cycles and trends; demographic trends; risks inherent in changes in market interest rates and quality spreads; funding opportunities and borrowing costs; conditions and/or changes in funding markets, including commercial paper, term debt and the asset-backed securitization markets; uncertainties associated with risk management, including credit, prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. , asset/liability, interest rate and currency risks; adequacy of reserves for credit losses; risks associated with the value and recoverability of leased equipment and lease residual values Residual value Usually refers to the value of a lessor's property at the time the lease expires. residual value The price at which a fixed asset is expected to be sold at the end of its useful life. ; application of fair value accounting in volatile markets; changes in laws or regulations governing our business and operations; changes in competitive factors; future acquisitions and dispositions of businesses or asset portfolios; the risks associated with our being a bank holding company, including, but not limited to, whether our existing business activities are permissible per·mis·si·ble adj. Permitted; allowable: permissible tax deductions; permissible behavior in school. per·mis activities. 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. Individuals interested in receiving future updates on CIT via e-mail can register at http://newsalerts.cit.com [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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