CIT Group said on Thursday it lost $438.1 million, or $1.30 a share, in the first quarter, compared with $240.7 million, or $1.36 a share, a year ago.

“Our results this quarter reflect the ongoing stress in the economy,” Jeffrey Peek, chairman and chief executive at CIT, said in a press release.

Peek said economic conditions have pressured segments of the middle market and tight credit market conditions have pushed up borrowing costs and compressed margins.

As of March 31, Tier 1 and Total Capital Ratios at CIT were 9.3% and 13%, respectively, on a consolidated basis.

The company said that CIT Bank raised more than $700 million of deposits in the quarter as part of the implementation of a bank strategy focused on stabilizing its long-term funding.

CIT also transferred $5.7 billion of assets into the bank through a waiver from the Federal Reserve.

As of March 31, assets at CIT Bank totaled $3.9 billion and deposits totaled $3 billion.
CIT applied to become a bank holding company last year. It was given regulatory approval for bank holding status in December.


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