CIT Group

CIT Group

Company type	Subsidiary
Industry	Financial services
Founded	February 11, 1908 (1908-02-11) in St. Louis, Missouri, United States
Founder	Henry Ittleson
Headquarters	New York City , United States
Area served	North America
Key people	Ellen Alemany (CEO, as of 2016)
Products	Factoring, cash and treasury management, mortgage lending, Small Business Administration lending, leasing, consulting services, banking, locomotive and railcar leasing
Parent	First Citizens BancShares

CIT Group (CIT), a subsidiary under First Citizens BancShares, is a U.S.-based financial services firm headquartered in New York City. The company provides a variety of financing options such as factoring, cash and treasury management, mortgage and Small Business Administration lending, leasing, and consulting services. Its primary clientele includes individuals, mid-sized enterprises, and small businesses throughout North America. Operating under the reporting symbol CEFX, CIT leases locomotives and railcars to railroads and shipping firms across the continent. Additionally, it runs a direct banking operation. In January 2022, First Citizens BancShares completed its acquisition of CIT.

Origins and Initial Development

Established on February 11, 1908, by Henry Ittleson in St. Louis, Missouri, the Commercial Credit and Investment Company initially specialized in financing accounts receivable for small enterprises.

By 1915, the company had moved its headquarters to New York City and was renamed Commercial Investment Trust (CIT), broadening its financing services to include wholesale vendors and producers of consumer goods. In 1916, CIT became a pioneer in automobile financing through a partnership with Studebaker. During World War I, the firm financed the production of 150 submarine chasers and later collaborated with Thomas Edison, Inc. to support consumer radio manufacturing. The economic upswing following the war stimulated growth in financing for consumer appliances, furniture, and automobiles.

In 1924, CIT incorporated in Delaware and made its debut on the New York Stock Exchange. It introduced factoring services in 1928 and expanded into European markets by 1929. Due to escalating geopolitical tensions, operations in Germany were shut down in 1934. Arthur O. Dietz took over as president from Ittleson in 1939. Throughout World War II, CIT supported its employees with bonuses, insurance benefits, and guaranteed job security for those serving in the military. Net income rose from $7.3 million in 1947 to $30.8 million by 1950. Henry Ittleson died in 1948 at age 77.

Mid-20th Century to Late 1990s

In 1957, CIT relocated its headquarters to 650 Madison Avenue in Manhattan. Seeking diversification, it acquired Picker X-Ray Corporation—a manufacturer of X-ray and radiation devices—for $1.9 million in 1958. Walter Lundell assumed the presidency in 1960. The company grew further through acquisitions such as Gibson Greeting Cards for $36 million in 1964 and Meadow Brook Bank for $106.7 million in stock in 1965. By 1969, CIT had shifted its focus toward personal loans, home equity financing, and leasing activities while exiting the automobile financing sector. Due to stringent banking regulations, it divested National Bank of North America in 1979.

In 1980, CIT was acquired by RCA Corporation, which subsequently sold off its manufacturing units including Picker X-Ray and Gibson Greeting Cards. The corporate headquarters moved from Madison Avenue to Livingston, New Jersey, in 1983. Ownership changed again in 1984 when Manufacturers Hanover Trust purchased CIT; later in 1989, a majority stake (60%) was sold to Japan’s Dai-Ichi Kangyo Bank.

The early 1990s saw CIT expand its small business offerings by acquiring Fidelcor Business Credit Corporation in 1991 and establishing offices across seven states by 1992. The firm returned to public markets with an initial public offering in 1997 that generated $850 million.

A significant strategic acquisition occurred on November 15, 1999, when CIT purchased Toronto-based Newcourt Credit Group for $4.2 billion. This deal created one of the largest publicly traded leasing companies globally and greatly enhanced CIT’s market presence and international footprint.

Early 2000s

In 2001, Tyco purchased CIT for $9.2 billion in stock, subsequently renaming it Tyco Capital. Facing operational difficulties, Tyco decided to divest non-essential assets, including CIT. On July 8, 2002, Tyco conducted an IPO to distribute 100% of CIT Group Inc.'s common shares, generating $4.6 billion in proceeds.

CIT expanded its portfolio in 2004 by acquiring GATX's technology leasing division for around $200 million. By 2006, the company had moved its global headquarters to 11 West 42nd Street in New York City.

During Jeff Peek’s tenure as CEO, CIT’s asset base increased by 77% from 2004 through 2007, driven by acquisitions in education finance and subprime mortgage sectors. These expansions ultimately led to cumulative losses exceeding $3 billion over eight consecutive quarters, significantly weakening the company’s financial standing.

Bankruptcy and reorganization

On July 1, 2008, CIT divested its home lending business to Lone Star Funds for $1.5 billion in cash plus the assumption of $4.4 billion in debt and sold its manufactured housing loan portfolio to Vanderbilt Mortgage and Finance for approximately $300 million.

By December 2008, CIT transitioned into a bank holding company to gain access to $2.33 billion through the Troubled Asset Relief Program (TARP).

After the Federal Deposit Insurance Corporation declined CIT’s request for loan guarantees on July 15, 2009, the company secured $3 billion from bondholders—including Pacific Investment Management Company (PIMCO)—on July 19 to postpone bankruptcy proceedings.

CIT filed for Chapter 11 bankruptcy protection on November 1, 2009, marking one of the largest bankruptcies in U.S. history. The company successfully emerged from bankruptcy on December 10, 2009.

As part of its restructuring plan, CIT appointed seven new independent board members. On January 19, 2010, Peter J. Tobin was named interim CEO, replacing Jeff Peek. Shortly thereafter, on February 8, former Merrill Lynch CEO John Thain was brought on as chairman and CEO.

In June 2014, CIT enhanced its technology-focused lending capabilities by acquiring Direct Capital.

On August 3, 2015, CIT purchased OneWest Bank, originally established in 2009 by a private equity group led by Steven Mnuchin, for $3.4 billion in a combination of cash and stock. This acquisition expanded CIT’s market presence and diversified its financial services offerings.

2016 to present

March 2016 marked a leadership change as CEO John Thain retired and was succeeded by board member Ellen Alemany, signaling a strategic shift at the company.

In April 2017, CIT divested its aircraft leasing division to Avolon for $10.38 billion—an important step aligning with its renewed business focus.

Later that year in October, CIT sold Financial Freedom along with its reverse mortgage portfolio—assets originally acquired through the OneWest Bank deal—further refining its product lineup.

By October 2018, CIT exited international markets with the sale of NACCO, its European rail leasing subsidiary, concentrating efforts on core operations within the United States.

Expanding its commercial banking reach, CIT acquired Mutual of Omaha Bank in January 2020 for $1 billion.

Finally, in January 2022, CIT was acquired by First Citizens BancShares, ending its independent status and integrating into a larger banking organization.