CIT Group announced financial results for the first quarter ended March 31, 2017.

For the quarter ended March 31, 2017, the Company reported net income of $180 million compared to $146 million for the year-ago quarter.  Income from continuing operations for the first quarter was $78 million compared to $61 million in the year-ago quarter. Net income excluding noteworthy items for the first quarter was $163 million compared to $142 million for the year-ago quarter. Income from continuing operations excluding noteworthy items for the first quarter was $109 million compared to $57 million in the year-ago quarter.

"We are off to a solid start for the year," said Chairwoman and Chief Executive Officer Ellen R. Alemany. "The sale of Commercial Air was completed, $5.8 billion in liability management actions were initiated, progress on our operating expense goal was achieved and our core business trends were stable. We remain committed to maintaining a strong balance sheet while making further progress on our strategic priorities, including building on our strengths in the commercial and consumer banking franchises, and creating value for shareholders."

Selected Highlights:

Commercial Banking - Financing and Leasing Assets

Financing and leasing assets, which comprise the vast majority of earning assets, was $30.7 billion at March 31, 2017, up 1% from December 31, 2016, driven by higher factoring receivables. The 1% decrease from March 31, 2016, was driven by sales in the Commercial Finance division, which offset increases in each of the other divisions.

New lending and leasing volume of $1.6 billion was down from the prior quarter, reflecting seasonality and market trends, and down from the year-ago quarter primarily due to weak market conditions in middle market lending.

Factored volume of $6.8 billion was flat with the prior quarter and up 16% compared to the year-ago quarter, driven by increased volume across all industries, especially technology.

Commercial Banking Divisions

Commercial Finance

• Financing and Leasing Assets declined 3% from the prior quarter as we continue to position Commercial Finance to emphasize opportunities that build upon our specialty lending expertise by providing credit as well as other bank products and deposits.
• Gross yield, net finance revenue and net finance margin were all impacted by lower purchase accounting accretion and prepayment benefits.

Rail

• Financing and Leasing Assets were flat and the utilization rate remained at 94% as improvement in sand car utilization was offset by declines in tank car utilization.
• Renewal lease rates are re-pricing 20-30% lower on average.

Real Estate Finance

• Financing and Leasing Assets grew 1.6% in the current quarter, reflecting growth of 2.5% in core assets partially offset by run-off of legacy portfolio assets.
• Gross yields, net finance revenue and net finance margin were all impacted by lower purchase accounting accretion and prepayment benefits.

Business Capital

• Financing and Leasing Asset growth of 7% from the prior quarter was primarily driven by growth in the Commercial Services business.
• Increase in portfolio yields reflects the repayment of a non-accrual loan.

Read the full release here.