Exhibit 99.1

 

CIT Announces Third Quarter 2019 Results                

NEW YORK – Oct. 22, 2019 – CIT Group Inc. (NYSE: CIT) today reported third quarter 2019 results.

Financial Results

Net income available to common shareholders of $143 million or $1.50 per diluted common share.

Excluding noteworthy items, net income available to common shareholders of $123 million or $1.29 per diluted common share1.

 

Chairwoman and CEO Commentary

“We posted solid third quarter results, despite a challenging rate environment,” said CIT Chairwoman and Chief Executive Officer Ellen R. Alemany. “We grew average core loans and leases by 2 percent, had strong credit performance, maintained disciplined expense management and increased tangible book value per share to $55.60. We expect the acquisition of Mutual of Omaha Bank to accelerate our strategic plan and improve returns. We remain focused on closing the transaction in the first quarter, pending regulatory approval.”

 

Strategic Pillars

Grow Core Businesses

Average loans and leases up 1% from the prior quarter. Average core loans and leases2 up 2% from the prior quarter.

Pending acquisition of Mutual of Omaha Bank to provide low-cost stable Homeowners Association deposits and expand our commercial banking franchise.

Optimize Balance Sheet

Issued $550 million in senior unsecured debt due 2025 at 2.969% at CIT Bank.

Tangible book value per share3 of $55.60, up 11% in the past year.

Enhance Operating Efficiency

Continued disciplined expense management.

Remain on track to achieve operating expense reduction target.

Maintain Strong Risk Management

Maintained strong credit performance and disciplined underwriting standards.

Credit reserves stable at 1.55% of total portfolio and 1.87% of Commercial Banking portfolio.

 

1 

Net income available to common shareholders excluding noteworthy items is a non-GAAP measure. See “Non-GAAP Measurements” at the end of this press release and starting on page 17 for a reconciliation of non-GAAP to GAAP financial information.

2 

Average core loans and leases is a non-GAAP measure. Core portfolios are total loans and leases net of credit balances of factoring clients, NACCO assets held for sale, Legacy Consumer Mortgages (LCM) and Non-Strategic Portfolios (NSP). See “Non-GAAP Measurements” at the end of this press release and starting on page 17 for a reconciliation of non-GAAP to GAAP financial information.

3 

Tangible book value per share is a non-GAAP measure. See “Non-GAAP Measurements” at the end of this press release and starting on page 17 for a reconciliation of non-GAAP to GAAP financial information.

 

 

1

 


 

 

 

 

Selected Financial Highlights:

 

 

Select Financial Highlights*

 

 

 

 

 

 

 

 

 

 

 

 

3Q19 change from

 

($ in millions)

3Q19

 

 

2Q19

 

 

3Q18

 

 

2Q19

 

 

3Q18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net finance revenue(1)

$

353

 

 

$

361

 

 

$

389

 

 

$

(7

)

 

-2

%

 

$

(36

)

 

-9

%

Non-interest income

 

101

 

 

 

106

 

 

 

86

 

 

 

(5

)

 

-5

%

 

 

15

 

 

17

%

Total net revenue(1)

 

454

 

 

 

467

 

 

 

476

 

 

 

(13

)

 

-3

%

 

 

(21

)

 

-4

%

Operating expenses and loss on debt extinguishment

 

311

 

 

 

268

 

 

 

267

 

 

 

43

 

 

16

%

 

 

44

 

 

17

%

Income from continuing operations before credit provision

 

143

 

 

 

199

 

 

 

209

 

 

 

(55

)

 

-28

%

 

 

(65

)

 

-31

%

Provision for credit losses

 

27

 

 

 

29

 

 

 

38

 

 

 

(2

)

 

-7

%

 

 

(12

)

 

-30

%

Income from continuing operations before (benefit) provision for income taxes

 

117

 

 

 

170

 

 

 

171

 

 

 

(53

)

 

-31

%

 

 

(54

)

 

-32

%

(Benefit) provision for income taxes

 

(26

)

 

 

33

 

 

 

41

 

 

 

(59

)

NM

 

 

 

(67

)

NM

 

Income from continuing operations

 

143

 

 

 

137

 

 

 

129

 

 

 

6

 

 

4

%

 

 

13

 

 

10

%

Income from discontinued operations, net of taxes

 

-

 

 

 

1

 

 

 

2

 

 

 

(1

)

 

-100

%

 

 

(2

)

 

-100

%

Net income

 

143

 

 

 

138

 

 

 

132

 

 

 

5

 

 

4

%

 

 

11

 

 

9

%

Preferred stock dividends

 

-

 

 

 

9

 

 

 

-

 

 

 

(9

)

NM

 

 

 

-

 

NM

 

Net income available to common shareholders

$

143

 

 

$

128

 

 

$

132

 

 

$

15

 

 

11

%

 

$

11

 

 

9

%

Income from continuing operations available to common shareholders

$

143

 

 

$

127

 

 

$

129

 

 

$

15

 

 

12

%

 

$

13

 

 

10

%

Noteworthy items(2)

 

(20

)

 

 

-

 

 

 

2

 

 

 

(20

)

 

 

 

 

 

(22

)

 

 

 

Income from continuing operations available to common shareholders, excluding noteworthy items(1)(2)

$

123

 

 

$

127

 

 

$

131

 

 

$

(5

)

 

-4

%

 

$

(9

)

 

-6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted income per common share

$

1.50

 

 

$

1.33

 

 

$

1.15

 

 

$

0.17

 

 

13

%

 

$

0.35

 

 

31

%

Diluted income per common share, excluding noteworthy items

$

1.29

 

 

$

1.33

 

 

$

1.17

 

 

$

(0.04

)

 

-3

%

 

$

0.12

 

 

10

%

Average diluted common shares outstanding (in thousands)

 

95,018

 

 

 

96,483

 

 

 

114,007

 

 

 

(1,465

)

 

-2

%

 

 

(18,989

)

 

-17

%

Tangible book value per common share (TBVPS)(1)

$

55.60

 

 

$

54.29

 

 

$

50.02

 

 

$

1.32

 

 

2

%

 

$

5.58

 

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average loans and leases (includes HFS and net of credit balances)

$

37,133

 

 

$

36,658

 

 

$

36,441

 

 

$

476

 

 

1

%

 

$

693

 

 

2

%

Average core loans and leases (includes HFS and net of credit balances)

 

34,798

 

 

 

34,014

 

 

 

32,224

 

 

 

783

 

 

2

%

 

 

2,574

 

 

8

%

Average earning assets (AEA)(1)

 

46,245

 

 

 

46,148

 

 

 

45,377

 

 

 

97

 

 

0

%

 

 

868

 

 

2

%

New business volume

 

3,369

 

 

 

3,411

 

 

 

3,130

 

 

 

(42

)

 

-1

%

 

 

238

 

 

8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key performance metrics, continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net finance margin(1)

 

3.06

%

 

 

3.13

%

 

 

3.43

%

 

-7bps

 

 

 

 

 

-38bps

 

 

 

 

Net efficiency ratio(1)

 

63.8

%

 

 

56.1

%

 

 

54.1

%

 

NM

 

 

 

 

 

NM

 

 

 

 

Net charge-offs

 

0.34

%

 

 

0.40

%

 

 

0.35

%

 

-6bps

 

 

 

 

 

-1bps

 

 

 

 

Return on AEA (ROAEA)(1)

 

1.24

%

 

 

1.10

%

 

 

1.14

%

 

13bps

 

 

 

 

 

9bps

 

 

 

 

Return on tangible common equity (ROTCE)(1)

 

11.39

%

 

 

10.34

%

 

 

9.66

%

 

NM

 

 

 

 

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key performance metrics, continuing operations excluding Noteworthy Items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net finance margin(1)(2)

 

3.06

%

 

 

3.13

%

 

 

3.36

%

 

-7bps

 

 

 

 

 

-30bps

 

 

 

 

Net efficiency ratio(1)(2)

 

57.5

%

 

 

56.1

%

 

 

53.9

%

 

NM

 

 

 

 

 

NM

 

 

 

 

Net charge-offs

 

0.34

%

 

 

0.40

%

 

 

0.35

%

 

-6bps

 

 

 

 

 

-1bps

 

 

 

 

ROAEA(1)(2)

 

1.06

%

 

 

1.10

%

 

 

1.15

%

 

-4bps

 

 

 

 

 

-10bps

 

 

 

 

ROTCE(1)(2)

 

9.82

%

 

 

10.34

%

 

 

9.78

%

 

-52bps

 

 

 

 

 

4bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)These balances and metrics are non-GAAP measures. See "Non-GAAP Measurements" at the end of this press release and beginning on page 17 for a reconciliation of non-GAAP to GAAP financial information and noteworthy items. TBVPS is detailed on page 15.

 

(2)We exclude noteworthy items due to their episodic nature and size. See "Non-GAAP Measurements" at the end of this press release and beginning on page 17 for a reconciliation of non-GAAP to GAAP financial information and noteworthy items.

 

*Certain balances may not sum due to rounding.

 

Unless otherwise indicated, all references below relate to continuing operations.

 

 

 

 

2

 


 

 

 

Third Quarter Financial Highlights:

Net finance margin of 3.06% was down 7 bps from the prior quarter, primarily reflecting lower yields on loans and cash & investment securities.

Other non-interest income decreased $5 million from the prior quarter to $101 million, primarily driven by a decrease in net gains on sale of loans in Commercial Finance from the prior quarter.

Operating expenses, excluding noteworthy items and intangible asset amortization, decreased $1 million from the prior quarter to $261 million, including the impact of higher professional fees related to the pending Mutual of Omaha Bank transaction.

Net efficiency ratio excluding noteworthy items of 57% increased slightly from 56% in the prior quarter, reflecting the decrease in total net revenue.

Provision for credit losses was $27 million, down from $29 million in the prior quarter.

Net charge-offs of $26 million (0.34% of average loans) included $27 million (0.43% of average loans) in the Commercial Banking segment. Non-accrual loans increased $27 million and represents 0.95% of loans.

Effective tax rate excluding noteworthy items of 24%.

Loans and leases to deposit ratio was 91% at CIT Bank and 108% at CIT Group, both down slightly from the prior quarter primarily due to deposit growth.

Tangible book value per share of $55.60 increased 2.4% from the prior quarter.

CET1 ratio remained unchanged at 11.6%, reflecting quarterly earnings, growth in risk weighted assets (RWA) and a decrease in disallowed deferred tax assets.

ROTCE excluding noteworthy items was 9.8%. ROTCE excluding noteworthy items, normalized for the preferred dividend4, was 9.5%.

 

Noteworthy Items

Financial results for the third quarter included the following noteworthy items:

$53 million ($0.56 per diluted common share) positive tax provision resulting from the assertion of indefinite reinvestment of undistributed earnings in our Canadian operations.

$22 million (after tax) ($0.23 per diluted common share) impairment related to the sale of our Livingston, NJ, office building.

$11 million (after tax) ($0.12 per diluted common share) restructuring charge related to our strategic initiatives to support operating efficiency improvement.

 

 

 

4 

ROTCE, normalized for the preferred dividend, is a non-GAAP measure. See “Non-GAAP Measurements” at the end of this press release and starting on page 17 for a reconciliation of non-GAAP to GAAP financial information.

 

 

3

 


 

 

 

Income Statement Highlights:

Net Finance Revenue

 

Net Finance Revenue*

 

 

 

 

 

 

 

 

 

 

 

 

3Q19 change from

 

($ in millions)

3Q19

 

 

2Q19

 

 

3Q18

 

 

2Q19

 

 

3Q18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

503

 

 

$

516

 

 

$

474

 

 

$

(12

)

 

-2

%

 

$

30

 

 

6

%

Net operating lease revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income on operating leases

 

212

 

 

 

213

 

 

 

264

 

 

 

(1

)

 

-1

%

 

 

(53

)

 

-20

%

Depreciation on operating lease equipment

 

76

 

 

 

77

 

 

 

78

 

 

 

(1

)

 

-1

%

 

 

(2

)

 

-3

%

Maintenance and other operating lease expenses

 

42

 

 

 

48

 

 

 

57

 

 

 

(6

)

 

-13

%

 

 

(15

)

 

-26

%

Total net operating lease revenue(1)

 

94

 

 

 

88

 

 

 

130

 

 

 

6

 

 

7

%

 

 

(36

)

 

-28

%

Interest expense

 

244

 

 

 

243

 

 

 

214

 

 

 

1

 

 

0

%

 

 

30

 

 

14

%

Net finance revenue (2)

$

353

 

 

$

361

 

 

$

389

 

 

$

(7

)

 

-2

%

 

$

(36

)

 

-9

%

Noteworthy items(3)

 

-

 

 

 

-

 

 

 

(9

)

 

 

-

 

 

 

 

 

 

9

 

 

 

 

Net finance revenue, excluding noteworthy items(2)

$

353

 

 

$

361

 

 

$

381

 

 

$

(7

)

 

-2

%

 

$

(28

)

 

-7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average earning assets

$

46,245

 

 

$

46,148

 

 

$

45,377

 

 

$

97

 

 

0

%

 

$

868

 

 

2

%

Net finance margin(2)

 

3.06

%

 

 

3.13

%

 

 

3.43

%

 

-7bps

 

 

 

 

 

-38bps

 

 

 

 

Net finance margin, excluding noteworthy items(2)

 

3.06

%

 

 

3.13

%

 

 

3.36

%

 

-7bps

 

 

 

 

 

-30bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)Net operating lease revenue is a non-GAAP measure, and is reconciled in the table as a combination of GAAP balances, rental income on operating leases less depreciation on operating lease equipment and maintenance and other operating lease expenses. Net operating lease revenue is used by management to monitor portfolio performance and returns on purchased equipment.

 

(2)These balances and metrics are non-GAAP measures used to measure the profitability of our earning assets. See "Non-GAAP Measurements" at the end of this press release and beginning on page 17 for a reconciliation of non-GAAP to GAAP financial information and noteworthy items.

 

(3)See "Non-GAAP measurements" for a listing of Noteworthy items.

 

*Certain balances may not sum due to rounding.

 

Net finance revenue was $353 million, down from $361 million in the prior quarter.

 

o

Lower income on loans and cash & investment securities from lower market rates.

 

o

Lower income from interest recoveries on commercial loans and lower purchase accounting accretion.

 

o

Lower maintenance expenses from productivity improvements and a $3 million lease warranty recovery.

Net finance margin (net finance revenue as a percentage of average earning assets) was 3.06%, a 7 bps decrease from 3.13% in the prior quarter driven by the trends noted above.

Excluding noteworthy items, which impacted depreciation on operating lease equipment in the year-ago quarter, net finance revenue decreased $28 million compared to the year-ago quarter.

 

o

Higher interest costs driven by a higher level of deposits.

 

o

Higher interest income on commercial loans driven by loan growth.

 

o

Lower net operating lease revenue, as NACCO was sold in the fourth quarter of 2018.

Compared to the year-ago quarter, net finance margin excluding noteworthy items decreased 30 bps.

 

o

Lower operating lease net yields in Rail.

 

o

Higher deposit rates.

 

o

Lower borrowing costs from decreases in unsecured, secured and FHLB debt balances.


 

 

4

 


 

 

 

 

Other Non-Interest Income

 

Other Non-Interest Income*

 

 

 

 

 

 

 

 

 

 

 

 

3Q19 change from

 

($ in millions)

3Q19

 

 

2Q19

 

 

3Q18

 

 

2Q19

 

 

3Q18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fee revenues

$

29

 

 

$

28

 

 

$

28

 

 

$

2

 

 

6

%

 

$

1

 

 

4

%

Factoring commissions

 

25

 

 

 

24

 

 

 

27

 

 

 

1

 

 

6

%

 

 

(2

)

 

-7

%

Gains on leasing equipment, net of impairments

 

18

 

 

 

17

 

 

 

14

 

 

 

1

 

 

5

%

 

 

4

 

 

32

%

BOLI income

 

8

 

 

 

7

 

 

 

7

 

 

 

1

 

 

8

%

 

 

1

 

 

20

%

Gains on investment securities, net of impairments

 

2

 

 

 

2

 

 

 

4

 

 

 

(1

)

 

-24

%

 

 

(2

)

 

-56

%

Property tax income

 

5

 

 

 

6

 

 

 

-

 

 

 

(1

)

 

-12

%

 

 

5

 

NM

 

Other revenues

 

14

 

 

 

23

 

 

 

7

 

 

 

(9

)

 

-37

%

 

 

7

 

 

100

%

Total other non-interest income

 

101

 

 

 

106

 

 

 

86

 

 

 

(5

)

 

-5

%

 

 

15

 

 

17

%

Noteworthy items(1)

 

-

 

 

 

-

 

 

 

11

 

 

 

-

 

 

 

 

 

 

(11

)

 

 

 

Total other non-interest income, excluding noteworthy items(2)

$

101

 

 

$

106

 

 

$

97

 

 

$

(5

)

 

-5

%

 

$

4

 

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)See "Non-GAAP measurements" for a listing of Noteworthy items.

 

(2)Total other non-interest income, excluding noteworthy items is a non-GAAP measure and is reconciled to the GAAP balance, total other non-interest income, in the table above. Total other non-interest income, excluding noteworthy items is used by management to monitor the underlying level of income.

 

*Certain balances may not sum due to rounding.

 

Other non-interest income was $101 million, compared to $106 million in the prior quarter.

 

o

Lower other revenues from a decrease in net gains on sale of loans in Commercial Finance.

Excluding noteworthy items, which impacted other revenues in the year-ago quarter, other non-interest income increased by $4 million compared to the year-ago quarter.

 

o

Higher property tax income from the adoption of the lease accounting standard in 2019.

 

o

Higher gains on sale of leasing equipment.

 

o

Lower factoring commissions.

 

o

Lower gains on investment securities.

 

o

Lower other revenues, which included lower income on derivatives partially offset by higher net gains on the sale of loans.


 

 

5

 


 

 

 

 

Operating Expenses

 

Operating Expenses*

 

 

 

 

 

 

 

 

 

 

 

 

3Q19 change from

 

($ in millions)

3Q19

 

 

2Q19

 

 

3Q18

 

 

2Q19

 

 

3Q18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

$

138

 

 

$

141

 

 

$

137

 

 

$

(4

)

 

-3

%

 

$

0

 

 

0

%

Technology

 

34

 

 

 

35

 

 

 

32

 

 

 

(0

)

 

-1

%

 

 

2

 

 

6

%

Professional fees

 

21

 

 

 

17

 

 

 

17

 

 

 

4

 

 

27

%

 

 

4

 

 

26

%

Insurance

 

13

 

 

 

14

 

 

 

16

 

 

 

(1

)

 

-8

%

 

 

(3

)

 

-21

%

Net occupancy expense

 

45

 

 

 

15

 

 

 

16

 

 

 

30

 

NM

 

 

 

28

 

NM

 

Advertising and marketing

 

14

 

 

 

6

 

 

 

11

 

 

 

9

 

NM

 

 

 

4

 

 

36

%

Property tax expense

 

6

 

 

 

6

 

 

 

-

 

 

 

-

 

 

0

%

 

 

6

 

NM

 

Restructuring costs

 

15

 

 

 

-

 

 

 

-

 

 

 

15

 

NM

 

 

 

15

 

NM

 

Intangible asset amortization

 

6

 

 

 

6

 

 

 

6

 

 

 

-

 

 

0

%

 

 

(0

)

 

-3

%

Other expenses

 

20

 

 

 

30

 

 

 

28

 

 

 

(10

)

 

-33

%

 

 

(9

)

 

-30

%

Total operating expenses

 

311

 

 

 

268

 

 

 

263

 

 

 

43

 

 

16

%

 

 

48

 

 

18

%

Noteworthy items

 

44

 

 

 

-

 

 

 

-

 

 

 

44

 

NM

 

 

 

44

 

NM

 

Intangible asset amortization

 

6

 

 

 

6

 

 

 

6

 

 

 

-

 

 

0

%

 

 

(0

)

 

-3

%

Operating expenses, excluding noteworthy items and intangible asset amortization(1)

$

261

 

 

$

262

 

 

$

257

 

 

$

(1

)

 

0

%

 

$

4

 

 

1

%

Net efficiency ratio(2)

 

63.8

%

 

 

56.1

%

 

 

54.1

%

 

NM

 

 

 

 

 

NM

 

 

 

 

Net efficiency ratio, excluding noteworthy items and intangible asset amortization(2)

 

57.5

%

 

 

56.1

%

 

 

53.9

%

 

NM

 

 

 

 

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)Operating expenses excluding intangible asset amortization is used by management to compare period over period expenses, absent the strategic nature of the adjustments. Due to the exclusion of intangible amortization, this is considered a non-GAAP measure, as reconciled to total operating expenses in the table.

 

(2)These metrics are non-GAAP measures. See "Non-GAAP Measurements" at the end of this press release and beginning on page 17 for details on the calculation and description of the use of the metric. See non-GAAP disclosures for reconciliation of total net revenues.

 

*Certain balances may not sum due to rounding.

 

Operating expenses, excluding noteworthy items, which impacted net occupancy expense and restructuring costs in the current quarter, and intangible asset amortization, was $261 million compared to $262 million in the prior quarter.

 

o

Higher advertising and marketing costs, primarily driven by higher costs related to deposit gathering.

 

o

Higher professional fees, primarily due to elevated costs related to the pending Mutual of Omaha Bank transaction.

 

o

Lower employee costs.

 

o

Lower other operating expenses, primarily in the Consumer Banking segment.

Excluding noteworthy items in the current quarter, operating expenses excluding intangible asset amortization increased by $4 million compared to the year-ago quarter.

 

o

Higher advertising and marketing costs, primarily driven by higher costs related to deposit gathering.

 

o

Higher professional fees, primarily due to elevated costs related to the pending Mutual of Omaha Bank transaction.

 

o

Lower FDIC insurance costs.

 

o

The gross-up of property taxes and the expensing of lease origination costs previously capitalized due to the adoption of the new lease accounting standard in 2019.

 

o

Decrease in other expenses, primarily in the Consumer Banking segment.

 

 

6

 


 

 

 

The net efficiency ratio, which excludes the restructuring charge and intangible asset amortization, was 64% compared to 56% in the prior quarter.

 

o

The increase was driven by a decrease in total net revenue and an increase in operating expenses.

The net efficiency ratio excluding noteworthy items and intangible asset amortization was 57% compared to 56% in the prior quarter.

 

o

The increase was driven by the decrease in total net revenue.

The net efficiency ratio excluding intangible asset amortization was 54% in the year-ago quarter.

 

o

The increase from the year-ago quarter was driven primarily by the decrease in total net revenue and increase in operating expenses.

 

o