CIT Reports Second Quarter 2016 Net Income of $14 Million ($0.07 Per Diluted Share); Income from Continuing Operations of $181 Million ($0.90 Per Diluted Share)

CIT
Group Inc. (NYSE:CIT), today reported net income of $14 million,
$0.07 per diluted share, for the quarter ended June 30, 2016, compared
to net income of $115 million, $0.66 per diluted share for the year-ago
quarter. Income from continuing operations for the second quarter was
$181 million, $0.90 per diluted share compared to $115 million, $0.66
per diluted share in the year-ago quarter.

Net income for the six month period ended June 30, 2016 was $161
million, $0.80 per diluted share, compared to $219 million, $1.24 per
diluted share, for the period ended June 30, 2015. Income from
continuing operations for the six month period ended June 30, 2016 was
$333 million, $1.65 per diluted share, compared to $219 million, $1.24
per diluted share for the six month period ended June 30, 2015.

The loss of $167 million in discontinued operations relates to Financial
Freedom, a reverse mortgage servicing business that was part of the
OneWest Bank acquisition in August 2015. As disclosed in CIT’s Form 10-K
for fiscal year 2015, CIT determined that there was a material weakness
related to the Home Equity Conversion Mortgage (“HECM”) interest
curtailment reserve associated with this business. During the current
quarter, as a result of the ongoing process to remediate the material
weakness and taking into consideration the investigation being conducted
by the Office of Inspector General (“OIG”) for the Department of Housing
and Urban Development, the Company recorded additional reserves, due to
a change in estimate, of $230 million. This review and the related
investigation are ongoing and, as a result, the amount of this reserve
could change prior to the filing of the current quarter Form 10-Q.

“We are disappointed that the additional charges arising from the legacy
Financial Freedom business, which was part of the OneWest Bank
acquisition, offset the improved earnings from continuing operations.
Despite the impact it had on our financial results, we made good
progress this quarter advancing our strategic goals,” said Ellen
Alemany, Chief Executive Officer. “We filed the initial Form 10
Registration Statement for C2 Aviation Capital as part of our Commercial
Air separation and have advanced to the second round of the bidding
process. We entered into a definitive agreement to sell our Canadian
Equipment and Corporate Finance Business and we transferred our
remaining Business Air assets to held for sale. We remain committed to
executing on our strategy to grow our core businesses, reduce operating
expenses and improve returns.”

Summary of Second Quarter Financial Results
from Continuing Operations

All references in this section relate to continuing operations and
therefore do not include any of the assets or results of operations of
the discontinued operations.

On August 3, 2015, CIT acquired IMB HoldCo LLC, the parent company of
OneWest Bank, which impacts the comparability of current results to
prior periods. The current and prior quarters reflect a full
quarter of OneWest Bank’s results of operations while the prior-year
period does not include any results from OneWest Bank.

Selected Financial Highlights (Continuing
Operations)

Income from continuing operations of $181 million included net after-tax
charges of $9 million from discrete items related to our strategic
initiatives. Discrete items included charges related to a goodwill
impairment on the business aircraft assets transferred to held for sale
and a restructuring charge resulting from operating expense reduction
initiatives. In addition to these items, income this quarter included a
lower credit provision primarily in the oil and gas portfolio and a
mark-to-market benefit on the total return swap (“TRS”).

Tangible book value per share¹ increased slightly to $48.45.
Estimated Common Equity Tier 1 and Total Capital ratios at June 30, 2016
increased to 13.4% and 14.1%, respectively, as calculated under the
fully phased-in Regulatory Capital Rules. Average earning assets²
for the June 30, 2016 quarter were relatively flat at $59.2 billion
reflecting growth in Transportation Finance offset by a reduction in
Commercial Banking and run-off in the liquidating portfolios. The ROTCE³
of 8.26% increased from the prior quarter reflecting earnings from
continuing operations while the increase from the year-ago quarter
reflects the lower capital levels primarily due to the acquisition of
OneWest Bank.

Income Statement Highlights:

Net finance revenue⁴ was $541 million in the current quarter,
compared to $553 million in the prior quarter and $343 million in the
year-ago quarter. Net finance revenue as a percentage of average earning
assets (“net finance margin”) decreased from the prior quarter and
increased from the year-ago quarter. The decreases in net finance
revenue and net finance margin from the prior quarter were driven
primarily by higher maintenance and other operating lease costs and
lower rental revenue as the prior quarter reflected elevated collections
on remarketed aircraft.

Average earning assets were essentially flat compared to the prior
quarter reflecting growth in Aerospace, Rail, Real Estate Finance, and
Other Consumer Banking, driven by new business volume, offset by assets
sales and higher prepayments in Commercial Finance and run-off in the
liquidating portfolios.

The increases in net finance revenue, net finance margin and average
earning assets from the year-ago quarter reflected the benefits from the
OneWest Bank acquisition.

Other income of $104 million included gains on assets sales, primarily
in Rail, mostly offset by impairment charges on certain rail assets when
transferred to held for sale, and a $4 million goodwill impairment
charge on the remaining business aircraft assets, also transferred to
assets held for sale. The current quarter also included a $9 million
mark-to-market benefit on the TRS and a $5 million mark-to-market
benefit on the mortgage backed securities. The prior quarter included
$10 million of net benefits from international business exits,$18
million benefit from the mark-to-market on the TRS partially offset by a
$4 million mark-to-market charge on the mortgage backed securities. The
year-ago quarter included a $9 million tax-related charge (that was
fully offset with a benefit to the tax provision) and a $6 million
negative mark-to-market on the TRS.

Operating expenses excluding restructuring costs and intangible asset
amortization⁵ were relatively flat to the prior quarter at
$321 million. The current quarter reflected elevated costs primarily
associated with the Commercial Air separation and higher FDIC insurance,
offset by lower employee cost as the prior quarter included the annual
benefit restarts. The current quarter also included $8 million of other
expenses related to real estate owned (“REO”) that occurred in prior
periods. The increase from the prior year reflected the addition of
OneWest Bank. The net efficiency ratio⁵ of 50% reflected
lower net finance revenue partially offset by lower operating expenses
as compared to the prior quarter and improvement from the prior year
reflects the addition of OneWest Bank. Headcount at June 30, 2016 was
4,650, down from 4,740 in the prior quarter, due to strategic
initiatives, and up from 3,360 a year-ago, due to the OneWest Bank
acquisition. Restructuring costs in this quarter and the prior quarter
related to our strategic initiatives to reduce operating expenses, while
the amortization of intangibles was primarily due to the OneWest Bank
acquisition.

Income Taxes

The provision for income taxes of $94 million for the quarter included
$4 million of net discrete tax expense. The prior quarter had an income
tax expense of $53 million for the quarter, including $14 million of
discrete tax benefits from the resolution of a tax position on an
international portfolio that had been previously sold. The current
effective tax rate was 34% for the quarter, up from 26% in the prior
quarter and 25% in the year-ago quarter. The increase in the effective
tax rate is mainly attributable to the impact of discrete items compared
to the prior quarter and increased domestic earnings, which shifted the
geographic mix of earnings compared to the year-ago quarter. Cash taxes
were a net payment of $6 million compared to less than $1 million in the
prior quarter and $4 million in the year-ago quarter.

Balance Sheet Highlights:

Earning assets at June 30, 2016 declined slightly from the prior
quarter, as collections and sales of loans offset $2.8 billion in new
originations. The increase from the year-ago quarter principally
reflects the assets acquired from OneWest Bank.

Interest bearing cash and investment securities were $10.3 billion at
June 30, 2016, and consisted of $7.1 billion of cash ($0.6 billion of
which was restricted cash), and $3.2 billion of investment securities,
primarily debt securities, Federal Home Loan Bank (“FHLB”) stock and
equities. The increase in investment securities from the prior quarter
reflects the initiative to deploy cash into liquid investments. In
addition, there was $1.0 billion of non-interest bearing cash and other
restricted balances.

Of the total cash and investment securities $1.7 billion of the interest
bearing cash and investment securities was at the financial holding
company, $8.2 billion was at CIT Bank and the remaining $1.4 billion
includes amounts at the operating subsidiaries and restricted balances.
In addition, there was $1.0 billion of non-interest bearing cash
primarily at the operating subsidiaries and other restricted balances.

Deposits were essentially flat from the prior quarter. The decline in
secured borrowings related to the amortization, redemption and
maturities of structured financings. The increase in secured borrowings
from June 30, 2015 primarily reflected FHLB borrowings related to the
acquisition of OneWest Bank in the third quarter of 2015, offset by a
reduction in other secured borrowings. At June 30, 2016, deposits
represented approximately 65% of CIT’s funding, with unsecured and
secured borrowings comprising 21% and 14% of the funding mix,
respectively. The weighted average coupon rate on outstanding deposits
and borrowings was 2.20% at June 30, 2016, down from 2.22% at March 31,
2016 and 3.04% at June 30, 2015.

Common stockholders’ equity and tangible common equity were essentially
unchanged from the prior quarter. The acquisition of OneWest Bank was
the main contributor to the increase from June 30, 2015, primarily due
to the issuance of common shares and the reversal of the valuation
allowance on our Federal deferred tax asset in the third quarter of
2015. Tangible common equity also increased from June 30, 2015, but by a
lower amount due to the increase in goodwill and intangibles resulting
from the acquisition of OneWest Bank. While regulatory capital also
reflected the trends noted above, the increase was less than the common
equity increase since the majority of the deferred tax asset balance is
disallowed for regulatory capital purposes. All regulatory capital
ratios increased from the prior quarter reflecting a reduction in risk
weighted assets. The decline in capital ratios from the prior year
reflected the acquisition of OneWest Bank as growth in regulatory
capital was more than offset by the increase in the risk-weighted
assets. The ratios presented are estimated Common Equity Tier 1 and
Total Capital ratios under the fully phased-in Regulatory Capital Rules.

Book value per share and tangible book value per share were relatively
flat. Both amounts also increased from June 30, 2015, as the increase in
equity outpaced the increase in shares outstanding.

In July 2016, the Board approved a $0.15 cash dividend payable on August
26, 2016 to common shareholders of record as of August 12, 2016.

Asset Quality

Excluding the impact relating to assets transferred to held for sale in
all periods, net charge-offs were $16 million (0.21% of average finance
receivables), compared to $42 million (0.53%) in the prior quarter and
$22 million (0.45%) in the year-ago quarter. The current quarter net
charge-offs includes $17 million in the energy (oil and gas) portfolio,
of which $10 million related to loans which were sold or transferred to
assets held for sale. Prior quarter net charge-offs included $15 million
in the energy (oil and gas) portfolio.

Non-accrual loans of $283 million (0.93% of finance receivables)
decreased from the prior quarter as charge-offs and asset sales
generally offset a modest level of new non-accruals. The increase
compared to the year-ago quarter is primarily due to increases in the
energy portfolio. The provision for credit losses decreased from the
prior quarter elevated levels, as portfolio quality was relatively
unchanged and charge-offs, excluding the impact relating to assets
transferred to held for sale, were lower.

The allowance for loan losses was $399 million (1.31% of finance
receivables, 1.55% excluding loans subject to loss sharing agreements
with the FDIC) at June 30, 2016, compared to $405 million (1.29% of
finance receivables, 1.52% excluding loans subject to loss sharing
agreements with the FDIC) at March 31, 2016 and $351 million (1.79% of
finance receivables) at June 30, 2015. The slight decrease in allowance
for loan losses from the prior quarter primarily reflected a reduction
due to energy related charge-offs and lower loan balances, partially
offset by approximately $10 million increase in the reserve for maritime
finance loans, while the increase from the year-ago quarter was
concentrated in the energy and maritime portfolios. Including the impact
of the principal loss discount on credit impaired loans, which is
essentially a reserve for credit losses on the discounted loans, the
commercial loan allowance to finance receivables was 1.83% compared to
1.87% at March 31, 2016. The consumer loans ratio was 7.20% at June 30,
2016 and 7.86% at March 31, 2016, respectively, as most of the consumer
loans purchased were credit impaired and are partially covered by loss
sharing agreements with the FDIC. The decrease from the prior quarter
was driven by the shift in asset mix as new originations offset the
run-off of the purchased credit impaired portfolio.

CIT’s loans to the oil and gas industry totaled $0.8 billion or 2.7% of
total loans at June 30, 2016, of which 47% were criticized. The decline
of $0.1 billion in oil and gas loans was driven by loan sales and pay
downs. The portfolio has loss coverage of about 10.5% of the principal
balance, reflecting the purchase accounting discount for loans acquired
from OneWest Bank and the allowance for loan losses. If market
conditions remain the same, the portfolio will likely experience
additional downward credit migration.

Commercial Banking

Commercial Banking pre-tax earnings increased from the prior quarter due
to lower credit costs and operating expenses, while the increase from
the year-ago quarter also reflects the addition from OneWest Bank.

Financing and leasing assets, which comprise the majority of earning
assets, were $21.5 billion at June 30, 2016, down slightly from $22.0
billion at March 31, 2016, mostly driven by the decrease in financing
and leasing assets in Commercial Finance, and up from $15.4 billion a
year-ago, reflecting the acquisition of OneWest Bank. New lending and
leasing volume exceeded $2 billion and was up from the prior and
year-ago quarters, driven by strong origination activity in Real Estate
Finance, while factored volume was down from both the prior and year-ago
quarters.

Net finance revenue was essentially flat to the prior quarter, and
included interest recoveries of $6 million on a loan previously charged
off. The increase from the year-ago quarter reflected higher earning
assets and purchase accounting accretion on loans acquired from OneWest
Bank. Net finance margin of 4.31% was up slightly from the prior and
year-ago quarters from interest recoveries on loans previously charged
off. In addition, the increase from the prior year was also due to
purchase accounting accretion on acquired loans.

Other income increased from the prior quarter primarily due to gains on
asset sales and recoveries of previous impairments on assets held for
sale, partially offset by lower capital market fees and factoring
commissions. The decline from the year-ago quarter reflected lower gains
on asset sales and lower factoring commissions.

Operating expenses decreased from the prior quarter, as the prior
quarter included higher legal expenses in Commercial Finance and higher
sales and local taxes in Business Capital. The increase from the
year-ago quarter reflected the acquisition of OneWest Bank.

Net charge-offs were $35 million (0.66% of average finance receivables),
compared to $32 million (0.60%) in the prior quarter and $25 million
(0.67%) in the year-ago quarter. Excluding assets transferred to held
for sale in all periods, net charge-offs were $16 million in the current
quarter, compared to $30 million in the prior quarter and $24 million in
the year-ago quarter. The decrease in the current quarter compared to
the prior quarter primarily related to energy loans. Non-accrual loans
were $208 million (1.00% of finance receivables), compared to $215
million (1.00%) at March 31, 2016, and $98 million (0.65%) a year-ago.
The increase in balances from the year-ago quarter was primarily related
to loans in the energy sector. The provision for credit losses decreased
from the prior quarter, which included higher reserves and charge-offs
related to the energy portfolio.

Transportation Finance

Transportation Finance pre-tax earnings decreased from the prior
quarter, as lower net finance revenue and other income offset lower
credit costs, and were essentially flat with the year-ago quarter, as
higher net finance revenue on increased average earning assets was
offset by higher credit costs, largely in Maritime. The current quarter
results also reflected charges related to the transfer of the remaining
Business Air portfolio to held for sale and increased operating expenses
related to the planned Commercial Air separation.

Financing and leasing assets totaled $20.0 billion at June 30, 2016,
compared to $19.9 billion at March 31, 2016 and $18.3 billion at June
30, 2015. Assets grew sequentially in Aerospace and Rail and grew in all
three divisions (Aerospace, Rail and Maritime) from a year ago. Assets
held for sale of $0.8 billion principally included the Business Air
portfolio, as the remaining Business Air assets were transferred to held
for sale during the quarter. New business volume for the quarter totaled
$0.5 billion, up from the prior quarter reflecting additional aircraft
and railcar deliveries.

Net finance revenue was down from the prior quarter, as the impact of
higher maintenance and other operating lease expenses and lower rentals
offset lower funding costs. Net finance revenue increased from the
year-ago quarter primarily reflecting higher average operating lease
assets partially offset by higher maintenance and other operating lease
expenses. Net finance margin was down from the prior and year-ago
quarters reflecting the net finance revenue trends described above.
Gross yields in Aerospace and Rail decreased from the prior quarter to
10.9% and 13.2%, respectively, reflecting lower rental rates and higher
cash balances in Aerospace.

Other income declined from the prior and year-ago quarters largely
reflecting higher gains on asset sales in rail, which were offset by
impairments, including a $4 million goodwill impairment charge related
to the business aircraft assets transferred to held for sale.

Operating expenses were relatively flat with the prior quarter, as
higher costs related to the Commercial Air separation offset lower
employee costs. The current and prior quarter included $9 million and $4
million of costs related to the Commercial Air separation initiative,
respectively.

Net charge-offs, excluding assets transferred to held for sale, were
negligible for the current and year-ago quarters, compared to net
charge-offs of $12 million (1.49% of average finance receivables)
related to the Aerospace loan portfolio in the prior quarter.
Non-accrual loans of $18 million (0.70% of finance receivables)
decreased from $22 million (0.78%) at March 31, 2016 and increased from
$5 million (0.15%) a year-ago, and principally consisted of business
aircraft loans in each of the periods. The provision for credit losses
decreased from the prior quarter, but continues to reflect reserve
increases in Maritime and elevated charges in the Business Air portfolio
related to the assets transferred to held for sale.

Utilization trends were relatively unchanged compared to the prior
quarter. All aircraft were on lease or under a commitment at quarter-end
resulting in 100% utilization, while Rail utilization remained at
approximately 94%. All of our aircraft scheduled for delivery in the
next 12 months and approximately 41% of the total railcar order-book
have lease commitments.

Consumer and Community Banking

Consumer and Community Banking pre-tax earnings remained consistent with
the prior quarter. The quarter benefited from higher net finance
revenue, higher other income due to gains on REO, and lower credit
provision, which were offset by higher operating expenses, primarily
from REO expenses ($8 million of which related to prior periods).

Financing and leasing assets totaled $7.2 billion at June 30, 2016, down
slightly from March 31, 2016, as the run-off of the Legacy Consumer
Mortgage (“LCM”) portfolios offset new volume. The LCM portfolios make
up $5.2 billion of the current quarter balance with a significant
portion covered by loss sharing agreements with the FDIC. The benefit of
these agreements is recorded within the indemnification asset.

Non-accrual loans were $12 million (0.16% of finance receivables) at
June 30, 2016, up from $7 million (0.10% of finance receivables) at
March 31, 2016. The provision for credit losses decreased slightly from
the prior quarter.

Non-Strategic Portfolios (NSP)

NSP pre-tax earnings for the quarter reflected operations for the
remaining businesses in Canada and China. The prior quarter reflected a
gain of $24 million from the sale of the U.K. business, partially offset
by an $11 million impairment charge on assets held for sale. The
year-ago pre-tax loss was driven by the higher level of operating
expenses, reflective of the remaining businesses at that time. Financing
and leasing assets at June 30, 2016 totaled $1.1 billion, down slightly
from $1.2 billion at March 31, 2016 and from $2.1 billion at June 30,
2015. Our remaining NSP businesses are classified as held for sale.
During this quarter we reached a definitive agreement to sell the
Canadian Equipment and Corporate Finance business (approximately $750
million in financing and leasing assets), subject to regulatory
approvals, and expect the transaction to close in the fourth quarter of
this year.

Corporate & Other

Certain items are not allocated to operating segments and are included
in Corporate and Other, including interest expense, primarily related to
corporate liquidity costs, mark-to-market on certain derivatives,
restructuring charges, certain legal costs and other operating expenses.
Interest income increased slightly from the prior quarter and is up from
a year-ago quarter primarily related to income generated from the
investment portfolio. Other income included a $9 million mark-to-market
benefit on the TRS and a $5 million mark-to-market benefit on mortgage
backed securities in the current quarter, compared to an $18 million
benefit on the TRS offset by a $4 million mark-to-market charge on
mortgage backed securities in the prior quarter. The prior year quarter
included a $9 million tax-related charge, (that was fully offset with a
benefit to the tax provision) and a negative mark-to-market adjustment
on the TRS of $6 million. Operating expenses for the quarter reflected
restructuring charges of $10 million, compared to $20 million in the
prior quarter, reflecting our previously announced organizational
changes, and $1 million in the year-ago quarter.

Discontinued Operations

Income from discontinued operations, net of taxes, was a loss of $167
million in the current quarter compared to a loss of $5 million in the
prior quarter. In the current period, discontinued operations
predominantly relates to third-party reverse mortgage servicing
activity, known as Financial Freedom, which the Company acquired in the
OneWest Bank acquisition.

As a result of the ongoing review to remediate the material weakness,
and taking into consideration the investigation being conducted by the
OIG, the Company recorded additional reserves, due to a change in
estimate, of $230 million during the current quarter.

Conference Call and Webcast

Chairwoman and Chief Executive Officer Ellen
Alemany and Chief Financial Officer Carol
Hayles will discuss these results on a conference call and audio
webcast today, July 28, at 8:00 a.m. (EDT). Interested parties may
access the conference call live by dialing 888-317-6003 for U.S.,
866-284-3684 for Canadian callers or 412-317-6061 for international
callers and reference access code “0603321” or access the audio webcast
at cit.com/investor.
An audio replay of the call will be available until 11:59 p.m. (EDT) on
August 28, 2016, by dialing 877-344-7529 for U.S. callers, 855-669-9658
for Canadian callers or 412-317-0088 for international callers with the
access code “10089399”, or at cit.com/investor.

About CIT

Founded in 1908, CIT (NYSE: CIT) is a financial holding company with
more than $65 billion in assets. Its principal bank subsidiary, CIT
Bank, N.A., (Member FDIC, Equal Housing Lender) has more than $30
billion of deposits and more than $40 billion of assets. It provides
financing, leasing and advisory services principally to middle market
companies across a wide variety of industries primarily in North
America, and equipment financing and leasing solutions to the
transportation sector. It also offers products and services to consumers
through its Internet bank franchise and a network of retail branches in
Southern California, operating as OneWest Bank, a division of CIT Bank,
N.A. cit.com

Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of applicable federal securities laws 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. Important factors that could
cause our actual results to be materially different from our
expectations include, among others, the risk that CIT is unsuccessful in
implementing its strategy and business plan, the risk that CIT is unable
to react to and address key business and regulatory issues, the risk
that CIT is unable to achieve the projected revenue growth from its new
business initiatives or the projected expense reductions from efficiency
improvements, and the risk that CIT becomes subject to liquidity
constraints and higher funding costs. We describe these and other
risks that could affect our results in Item 1A, “Risk Factors,” of our
latest Annual Report on Form 10-K for the year ended December 31, 2015,
which was filed with the Securities and Exchange Commission. 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.

Non-GAAP Measurements

Net finance revenue, net operating lease revenue and average earning
assets are non-GAAP measurements used by management to gauge portfolio
performance. Operating expenses excluding restructuring costs and
intangible amortization is a non-GAAP measurement used by management to
compare period over period expenses. Net efficiency ratio measures
operating expenses (net of restructuring costs and intangible
amortization) to our level of total net revenues. Total assets
from continuing operations is a non-GAAP measurement used by management
to analyze the total asset change on a more consistent basis. Tangible
book value and tangible book value per share are non-GAAP metrics used
to analyze banks.

______________________________

¹ Adjusted ROATCE, Tangible book value and tangible book
value per share are non-GAAP measures. See “Non-GAAP Measurements” at
the end of this press release and page 25 for reconciliation of non-GAAP
to GAAP financial information.

² Average earning asset components include interest earning
cash, investments, securities and indemnification assets. See “Non-GAAP
Measurements” at the end of this press release and page 25 for
reconciliation of Earning Assets non-GAAP to GAAP financial information.

³ Adjusted Return on Tangible Common Equity, which adjusts
tangible common equity for the reversal of the valuation allowance and
the amortization of intangibles in the numerator and the disallowed
deferred tax asset related to regulatory capital in the denominator, is
a non-GAAP measure. See “Non-GAAP Measurements” at the end of this press
release and page 25 for reconciliation of non-GAAP to GAAP financial
information.

⁴ Net finance revenue, net finance margin and net operating
lease revenue are non-GAAP measures. See “Non-GAAP Measurements” at the
end of this press release and page 25 for reconciliation of non-GAAP to
GAAP financial information.

⁵ Operating expenses excluding restructuring costs and
intangible asset amortization and Net efficiency ratio is a non-GAAP
measure. See “Non-GAAP Measurements” at the end of this press release
and page 25 for reconciliation of non-GAAP to GAAP financial information.