Allowance For Credit Losses (Tables)

3 Months Ended

Mar. 31, 2020

Schedule of Allowance for Credit Losses and Recorded Investment in Finance Receivables

Allowance for Credit Losses and Recorded Investment in Loans (dollars in millions)

	Commercial Banking			Consumer Banking			Total			Commercial Banking			Consumer Banking			Total
	Quarter Ended March 31, 2020									Quarter Ended March 31, 2019
Balance - beginning of period	$	460.4		$	22.2		$	482.6		$	460.2		$	29.5		$	489.7
Legacy CIT⁽¹⁾ CECL adoption		74.7			148.9			223.6			-			-			-
Provision for credit losses⁽³⁾		508.9			5.0			513.9			35.1			(2.1	)		33.0
The initial ACL recognized on PCD assets⁽²⁾		18.8			1.4			20.2			-			-			-
Other⁽⁴⁾		(73.4	)		(2.2	)		(75.6	)		(1.3	)		(0.3	)		(1.6	)
Gross charge-offs⁽²⁾		(60.8	)		(2.2	)		(63.0	)		(38.9	)		(0.7	)		(39.6	)
Recoveries		9.0			0.4			9.4			5.7			0.3			6.0
Balance - end of period	$	937.6		$	173.5		$	1,111.1		$	460.8		$	26.7		$	487.5

										Commercial Banking			Consumer Banking			Total
										Allowance Balance at December 31, 2019
Loans individually evaluated for impairment										$	96.0		$	0.2		$	96.2
Loans collectively evaluated for impairment											354.6			14.4			369.0
Loans acquired with deteriorated credit quality⁽⁵⁾											9.8			7.6			17.4
Allowance for credit losses										$	460.4		$	22.2		$	482.6
Other reserves⁽¹⁾										$	36.4		$	0.7		$	37.1
										Loans at December 31, 2019
Loans individually evaluated for impairment										$	294.6		$	26.1		$	320.7
Loans collectively evaluated for impairment											24,071.0			5,329.6			29,400.6
Loans acquired with deteriorated credit quality⁽⁵⁾											27.8			1,249.8			1,277.6
Ending balance										$	24,393.4		$	6,605.5		$	30,998.9
Percent of loans to total loans											78.7	%		21.3	%		100.0	%

⁽¹⁾	^{Legacy CIT represents the Company before the MOB Acquisition.}

⁽²⁾

^{The quarter ended March 31, 2020 excludes the MOB day 1 charge-offs. Under the new CECL standard, the initial ACL recognized on PCD assets was $58.8 million, of which $38.6 million was charged-off for loans that had been written-off prior to acquisition (whether full or partial) or which met CIT’s charge-off policy at the time of acquisition. After considering loans that were immediately charged-off upon acquisition, the net impact was $20.2 million of additional PCD reserves on January 1, 2020.}

⁽³⁾	^{Includes a provision for off-balance sheet credit exposures of $75.1 million, which is not part of the ACL and is offset in the “Other” line.}

⁽⁴⁾	^{“Other” primarily includes the transfer of the “Allowance for off balance sheet credit exposures,” which represents credit loss reserves for unfunded lending commitments, letters of credit and DPA’s, to Other liabilities.}

⁽⁵⁾	^{Represents PCI loans.}