CIT Group reported on Tuesday a profitable quarter (its second since emerging from bankruptcy) and progress toward paying down debt.

The company earned $142 million during the second quarter, beating analyst expectations by nearly half. Though most of those gains were based on dispositions and its postbankruptcy, fresh-start accounting, CIT reported gains in its aircraft and rail leasing operations. CIT's assets shrank 5%, to $54.9 billion from the previous quarter, with the company paying down $3 billion of debt.

CIT also announced its intent to restructure some of its debt at a lower rate and with less restrictive covenants in short order. Likewise, executives said they had the ability to do "multiple billions of dollars of securitized financings" in its rail leasing segment.

On CIT's earnings call, analysts repeatedly pressed management about plans to shift more of the company's funding inside its banking unit, a cost-saving move that would need regulatory approval. According to CIT, it has already moved much of its commercial loan origination within the bank, and continues to discuss other possibilities with regulators.

"We have a constructive dialogue with all of our regulators and in particular constructive dialogues with the [Federal Deposit Insurance Corp.]," said CEO John Thain.

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