WAYZATA, Minn.--(BUSINESS WIRE)--TCF Financial Corporation (NYSE: TCB):
2012 HIGHLIGHTS
- Net interest margin of 4.65 percent, up 66 basis points from 2011
- Total loans and leases of $15.4 billion, up 9 percent from 2011
- Average deposits increased $1.2 billion, or 10.1 percent from 2011
FOURTH QUARTER HIGHLIGHTS
- Net interest margin of 4.79 percent, up 87 basis points from the fourth quarter of 2011
- Pre-tax pre-provision profit of $87.2 million, up 3.5 percent from the fourth quarter of 2011
- Average deposits increased $1.7 billion, or 13.7 percent from the fourth quarter of 2011
- Non-performing assets decreased $65.8 million, or 12.1 percent from the third quarter of 2012
- Over 60-day accruing delinquent loans improved by $3.2 million, or 3.2 percent from the third quarter of 2012
- Announced common and preferred stock dividend payments, payable February 28, 2013 and March 1, 2013, respectively
Summary of Financial Results |
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Table 1 |
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($ in thousands, except per-share data) | Percent Change | ||||||||||||||||||||||||||||||
4Q | 3Q |
4Q |
4Q12 vs |
4Q12 vs |
YTD |
YTD |
Percent |
||||||||||||||||||||||||
2012 |
2012 |
2011 |
3Q12 |
4Q11 |
2012(3) |
2011 |
Change |
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Net income (loss) | $ | 23,551 | $ | 9,322 | $ | 16,443 | 152.6 | % | 43.2 | % | $ | (218,490 | ) | $ | 109,394 | N.M. | |||||||||||||||
Net interest income | 201,063 | 200,559 | 173,434 | .3 | 15.9 | 780,019 | 699,688 | 11.5 | % | ||||||||||||||||||||||
Pre-tax pre-provision profit(1) | 87,151 | 115,809 | 84,191 | (24.7 | ) | 3.5 | 381,656 | 379,671 | .5 | ||||||||||||||||||||||
Diluted earnings (loss) per common share | .15 | .06 | .10 | 150.0 | 50.0 | (1.37 | ) | .71 | N.M. | ||||||||||||||||||||||
Financial Ratios(2) |
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Return on average assets | .63 | % | .30 | % | .37 | % | (1.14 | ) | % | .61 | % | ||||||||||||||||||||
Return on average common equity | 5.93 | 2.36 | 3.55 | (13.33 | ) | 6.32 | |||||||||||||||||||||||||
Net interest margin | 4.79 | 4.85 | 3.92 | 4.65 | 3.99 | ||||||||||||||||||||||||||
Net charge-offs as a percentage of average loans and leases |
1.18 | 2.74 | 1.63 | 1.54 | 1.45 | ||||||||||||||||||||||||||
N.M. = Not meaningful. | |||||||||||||||||||||||||||||||
(1) Pre-tax pre-provision profit (''PTPP'') is calculated as total revenues less non-interest expense. 2012 PTPP excludes the non-recurring net loss of $473.8 million related to the balance sheet repositioning completed in the first quarter of 2012. |
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(2) Annualized. | |||||||||||||||||||||||||||||||
(3) Includes a net, after-tax charge of $295.8 million, or $1.87 per share, related to the balance sheet repositioning. | |||||||||||||||||||||||||||||||
TCF Financial Corporation (“TCF”) (NYSE: TCB) today reported net income for the fourth quarter of 2012 of $23.6 million, compared with net income of $16.4 million in the fourth quarter of 2011 and net income of $9.3 million for the third quarter of 2012. Diluted earnings per common share was 15 cents for the fourth quarter of 2012, compared with 10 cents in the fourth quarter of 2011 and 6 cents in the third quarter of 2012.
TCF reported a net loss of $218.5 million for the year ended December 31, 2012, compared with net income of $109.4 million for the same period in 2011. The net loss for the year ended December 31, 2012 included (i) a net after-tax charge of $295.8 million, or $1.87 per common share, related to a balance sheet repositioning involving certain investments and borrowings and (ii) a net after-tax charge of $20.6 million, or 13 cents per common share, related to the implementation of clarifying bankruptcy-related regulatory guidance adopted in the third quarter, which requires loans subject to a borrower’s discharge from personal liability where the borrower has not reaffirmed the debt following Chapter 7 bankruptcy to be reported as non-accrual loans, and written down to the estimated collateral value, regardless of delinquency status. Diluted loss per common share for 2012 was $1.37, compared with diluted earnings per common share of 71 cents in 2011.
Chairman’s Statement
“TCF’s building and investing year was highlighted by several key actions, including the balance sheet repositioning, growth of our national lending businesses and a return to TCF Free Checking,” said William A. Cooper, Chairman and Chief Executive Officer. “I am pleased by the progress TCF made throughout 2012. In the fourth quarter we completed our second preferred stock issuance in 2012, saw continued checking account growth, reduced charge-offs and provision and an overall improvement in credit quality.
“The asset growth in our national platforms, the encouraging signs we are seeing in credit quality, and the execution on TCF Free Checking have provided significant momentum. I am confident that we will be able to continue to execute on the strategies we have put in place and deliver results to our stockholders.”
Revenue | |||||||||||||||||||||||||||||||||||
Total Revenue | Table 2 | ||||||||||||||||||||||||||||||||||
Percent Change | |||||||||||||||||||||||||||||||||||
4Q | 3Q | 4Q | 4Q12 vs | 4Q12 vs | YTD | YTD | Percent | ||||||||||||||||||||||||||||
($ in thousands) | 2012 | 2012 | 2011 | 3Q12 | 4Q11 | 2012 | 2011 | Change | |||||||||||||||||||||||||||
Net interest income | $ | 201,063 | $ | 200,559 | $ | 173,434 | .3 | % | 15.9 | % | $ | 780,019 | $ | 699,688 | 11.5 | % | |||||||||||||||||||
Fees and other revenue: | |||||||||||||||||||||||||||||||||||
Fees and service charges | 44,262 | 43,745 | 51,002 | 1.2 | (13.2 | ) | 177,953 | 219,363 | (18.9 | ) | |||||||||||||||||||||||||
Card revenue | 12,974 | 12,927 | 13,643 | .4 | (4.9 | ) | 52,638 | 96,147 | (45.3 | ) | |||||||||||||||||||||||||
ATM revenue | 5,584 | 6,122 | 6,608 | (8.8 | ) | (15.5 | ) | 24,181 | 27,927 | (13.4 | ) | ||||||||||||||||||||||||
Total banking fees | 62,820 | 62,794 | 71,253 | N.M. | (11.8 | ) | 254,772 | 343,437 | (25.8 | ) | |||||||||||||||||||||||||
Leasing and equipment finance | 26,149 | 20,498 | 18,492 | 27.6 | 41.4 | 92,721 | 89,167 | 4.0 | |||||||||||||||||||||||||||
Gains on sales of auto loans | 6,869 | 7,486 | 1,133 | (8.2 | ) | N.M. | 22,101 | 1,133 | N.M. | ||||||||||||||||||||||||||
Gains on sales of consumer real estate loans | 854 | 4,559 | - | (81.3 | ) | N.M. | 5,413 | - | N.M. | ||||||||||||||||||||||||||
Other | 3,973 | 3,688 | 1,570 | 7.7 | 153.1 | 13,184 | 3,434 | N.M. | |||||||||||||||||||||||||||
Total fees and other revenue | 100,665 | 99,025 | 92,448 | 1.7 | 8.9 | 388,191 | 437,171 | (11.2 | ) | ||||||||||||||||||||||||||
Subtotal | 301,728 | 299,584 | 265,882 | .7 | 13.5 | 1,168,210 | 1,136,859 | 2.8 | |||||||||||||||||||||||||||
(Losses) gains on securities, net | (528 | ) | 13,033 | 5,842 | (104.1 | ) | (109.0 | ) | 102,232 | 7,263 | N.M. | ||||||||||||||||||||||||
Total revenue | $ | 301,200 | $ | 312,617 | $ | 271,724 | (3.7 | ) | 10.8 | $ | 1,270,442 | $ | 1,144,122 | 11.0 | |||||||||||||||||||||
Net interest margin(1) | 4.79 | % | 4.85 | % | 3.92 | % | 4.65 | % | 3.99 | % | |||||||||||||||||||||||||
Fees and other revenue as a % of total revenue |
33.42 | 31.68 | 34.02 | 30.56 | 38.21 | ||||||||||||||||||||||||||||||
N.M. = Not meaningful. | |||||||||||||||||||||||||||||||||||
(1) Annualized. | |||||||||||||||||||||||||||||||||||
Net Interest Income
- Net interest income for the fourth quarter of 2012 increased $27.6 million, or 15.9 percent, compared with the fourth quarter of 2011. The increase was due to the balance sheet repositioning completed in the first quarter of 2012, which resulted in a $37.3 million reduction to the cost of borrowings, partially offset by a $17.1 million reduction of interest income on lower levels of mortgage-backed securities. Additionally, net interest income increased due to higher average loan balances in our national lending businesses, which includes leasing and equipment finance, inventory finance and auto finance businesses. These increases were offset by reduced interest income due to both lower yields and lower average balances of consumer real estate and commercial loans.
- Net interest margin in the fourth quarter of 2012 was 4.79 percent, compared with 3.92 percent in the fourth quarter of 2011 and 4.85 percent in the third quarter of 2012. The increase from the fourth quarter of 2011 was primarily due to lower average costs of borrowings as a result of the balance sheet repositioning. The decrease from the third quarter of 2012 was due to lower yields on new originations in the national lending portfolio in the current low rate environment.
Non-interest Income
- Banking fees and service charges in the fourth quarter of 2012 were $44.3 million, down $6.7 million, or 13.2 percent, from the fourth quarter of 2011. The decrease in banking fees and service charges from the fourth quarter of 2011 was primarily due to changes in our deposit product fee structure and the elimination of the monthly maintenance fee. Banking fees and service charges in the fourth quarter of 2012 increased $517 thousand from the third quarter of 2012 as seasonal decreases in incident rates were offset by an increase in checking accounts and additional fees related to accounts acquired from Prudential.
- Leasing and equipment finance revenue was $26.1 million during fourth quarter of 2012, up $7.7 million, or 41.4 percent, from the fourth quarter of 2011, and up $5.7 million, or 27.6 percent from the third quarter of 2012. The increases were primarily due to sales-type lease revenue growth in the leasing and equipment finance portfolio as a result of customer-driven events.
- TCF sold $159.6 million, $37.4 million and $161.1 million of auto loans during the fourth quarters of 2012 and 2011, and the third quarter of 2012, respectively, resulting in gains in the same respective periods.
- In the fourth quarter of 2012, TCF sold $25.8 million of consumer real estate loans, recognizing a gain of $854 thousand. In the third quarter of 2012, TCF sold $136.7 million of consumer real estate loans, recognizing a gain of $4.6 million.
Loans and Leases | ||||||||||||||||||||||||||||
Period-End and Average Loans and Leases | Table 3 | |||||||||||||||||||||||||||
Percent Change | ||||||||||||||||||||||||||||
($ in thousands) | 4Q | 3Q | 4Q | 4Q12 vs | 4Q12 vs | YTD | YTD | Percent | ||||||||||||||||||||
2012 | 2012 | 2011 | 3Q12 | 4Q11 | 2012 | 2011 | Change | |||||||||||||||||||||
Period-End: | ||||||||||||||||||||||||||||
Consumer real estate | $ | 6,674,501 | $ | 6,648,036 | $ | 6,895,291 | .4 | % | (3.2 | ) | % | |||||||||||||||||
Commercial | 3,405,235 | 3,511,234 | 3,449,492 | (3.0 | ) | (1.3 | ) | |||||||||||||||||||||
Leasing and equipment finance | 3,198,017 | 3,157,977 | 3,142,259 | 1.3 | 1.8 | |||||||||||||||||||||||
Inventory finance | 1,567,214 | 1,466,269 | 624,700 | 6.9 | 150.9 | |||||||||||||||||||||||
Auto finance | 552,833 | 407,091 | 3,628 | 35.8 | N.M. | |||||||||||||||||||||||
Other | 27,924 | 27,610 | 34,885 | 1.1 | (20.0 | ) | ||||||||||||||||||||||
Total | $ | 15,425,724 | $ | 15,218,217 | $ | 14,150,255 | 1.4 | 9.0 | ||||||||||||||||||||
Average: | ||||||||||||||||||||||||||||
Consumer real estate | $ | 6,663,660 | $ | 6,729,254 | $ | 6,933,051 | (1.0 | ) | (3.9 | ) | $ | 6,757,512 | $ | 7,013,281 | (3.6 | ) | % | |||||||||||
Commercial | 3,452,768 | 3,538,111 | 3,476,660 | (2.4 | ) | (.7 | ) | 3,485,218 | 3,565,085 | (2.2 | ) | |||||||||||||||||
Leasing and equipment finance | 3,184,540 | 3,164,592 | 3,043,329 | .6 | 4.6 | 3,155,946 | 3,074,207 | 2.7 | ||||||||||||||||||||
Inventory finance | 1,570,829 | 1,440,298 | 766,885 | 9.1 | 104.8 | 1,434,643 | 856,271 | 67.5 | ||||||||||||||||||||
Auto finance | 504,565 | 367,271 | 1,442 | 37.4 | N.M. | 296,083 | 363 | N.M. | ||||||||||||||||||||
Other | 14,704 | 16,280 | 17,944 | (9.7 | ) | (18.1 | ) | 16,549 | 19,324 | (14.4 | ) | |||||||||||||||||
Total | $ | 15,391,066 | $ | 15,255,806 | $ | 14,239,311 | .9 | 8.1 | $ | 15,145,951 | $ | 14,528,531 | 4.2 | |||||||||||||||
N.M. = Not meaningful. | ||||||||||||||||||||||||||||
- Loans and leases were $15.4 billion at December 31, 2012, an increase of $1.3 billion, or 9 percent, compared with December 31, 2011, and up slightly compared with September 30, 2012. The increase from 2011 was due to growth in inventory finance, primarily from the new program with Bombardier Recreational Products, Inc. (“BRP”), the continued growth of auto finance, acquired in November 2011, and growth in leasing and equipment finance, partially offset by decreases in consumer real estate loans driven by sales in the third and fourth quarter of 2012 and a decline in origination of first mortgages.
- Auto finance increased its portfolio of managed loans, which includes portfolio loans, loans held for sale, and loans sold and serviced for others, to $1.3 billion as of December 31, 2012, an increase of $242.1 million from September 30, 2012, and an increase of $864.5 million from December 31, 2011. At December 31, 2012, auto finance had 6,176 active dealers, compared with 6,087 at September 30, 2012 and 3,451 at December 31, 2011.
- Total loan and lease originations were $2.8 billion for the fourth quarter of 2012, an increase of $1.4 billion, or 105.1 percent, compared with the fourth quarter of 2011. This increase was primarily due to strong growth in our national lending businesses as it expanded its origination sources through new segments, programs and dealers. Total loan and lease originations increased $378.9 million, or 15.5 percent, compared with the third quarter of 2012, due to increases in the inventory finance portfolio as well as increased originations of commercial and leasing and equipment finance loans.
- Quarterly average loans and leases were $15.4 billion for the quarter ended December 31, 2012, an increase of $1.2 billion, or 8.1 percent, compared with the quarter ended December 31, 2011. The increase from the quarter ended December 31, 2011 was primarily due to growth in the inventory finance portfolio due to the funding of dealers of BRP products, as well as the growth in the auto finance portfolio since its acquisition in November 2011.
Credit Quality
(Table 4 - Credit Trends: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50544997&lang=en)
- Over 60-day delinquencies improved for the fourth consecutive quarter. Net charge-offs decreased $58.9 million from the third quarter, primarily due to the $43.9 million in charge-offs recorded at September 30, 2012 related to the implementation of clarifying bankruptcy-related regulatory guidance. Non-performing assets decreased from the third quarter due to decreases in commercial non-accrual loans and decreases in balances of commercial and consumer real estate other real estate owned.
- The over 60-day delinquency rate at December 31, 2012, was .64 percent, down from .85 percent at December 31, 2011. The decrease was primarily a result of reduced delinquencies in the consumer real estate portfolio.
- Non-accrual loans and leases were $379.5 million at December 31, 2012, a decrease of $42.4 million, or 10 percent, from September 30, 2012 and an increase of $81.1 million, or 27.2 percent, from December 31, 2011. The decrease from September 30, 2012 was primarily due to $27.7 million of commercial loans returning to accrual status, as well as payments received on commercial non-accrual loans. The increase from December 31, 2011 was primarily due to the implementation of clarifying bankruptcy-related regulatory guidance in the third quarter of 2012. At December 31, 2012, $117.7 million of non-accrual assets were associated with the clarifying bankruptcy-related guidance of which 87.5% were less than 60 days past due.
- Other real estate owned was $97 million at December 31, 2012, a decrease of $23.4 million from September 30, 2012, and a decrease of $37.9 million from December 31, 2011. Both decreases were primarily due to a decrease in the number of consumer and commercial properties owned driven by increased sales activity.
- Provision for credit losses was $48.5 million, a decrease of $47.8 million from the third quarter of 2012 and a decrease of $10.7 million from the fourth quarter of 2011. The decrease from the third quarter of 2012 was primarily due to the non-recurring impact resulting from the implementation of bankruptcy-related regulatory guidance in the third quarter. The decrease from the fourth quarter of 2011 was primarily due to decreasing net charge-offs.
Deposits | ||||||||||||||||||||||||||||||
Average Deposits | Table 5 | |||||||||||||||||||||||||||||
Percent Change | ||||||||||||||||||||||||||||||
($ in thousands) | 4Q | 3Q | 4Q | 4Q12 vs | 4Q12 vs | YTD | YTD | Percent | ||||||||||||||||||||||
2012 | 2012 | 2011 | 3Q12 | 4Q11 | 2012 | 2011 | Change | |||||||||||||||||||||||
Checking | $ | 4,627,627 | $ | 4,582,088 | $ | 4,449,640 | 1.0 | % | 4.0 | % | $ | 4,602,881 | $ | 4,499,211 | 2.3 | % | ||||||||||||||
Savings | 6,103,302 | 6,173,524 | 5,878,392 | (1.1 | ) | 3.8 | 6,059,237 | 5,692,324 | 6.4 | |||||||||||||||||||||
Money market | 819,596 | 848,899 | 662,024 | (3.5 | ) | 23.8 | 770,104 | 658,693 | 16.9 | |||||||||||||||||||||
Subtotal | 11,550,525 | 11,604,511 | 10,990,056 | (.5 | ) | 5.1 | 11,432,222 | 10,850,228 | 5.4 | |||||||||||||||||||||
Certificates | 2,206,173 | 1,953,208 | 1,112,735 |
13.0 |
98.3 | 1,727,859 | 1,103,231 | 56.6 | ||||||||||||||||||||||
Total average deposits | $ | 13,756,698 | $ | 13,557,719 | $ | 12,102,791 | 1.5 | 13.7 | $ | 13,160,081 | $ | 11,953,459 | 10.1 | |||||||||||||||||
Average interest rate on deposits (1) | .32 | % | .32 | % | .32 | % | .31 | % | .38 | % | ||||||||||||||||||||
(1) Annualized. | ||||||||||||||||||||||||||||||
- Total average deposits for the fourth quarter of 2012 increased $1.7 billion, or 13.7 percent, from the fourth quarter of 2011, primarily due to special programs for certificates of deposits, the assumption of $778 million of deposits from Prudential Bank & Trust, FSB in June 2012 and the reintroduction of free checking.
- The average interest rate on deposits in the fourth quarter of 2012 was .32 percent and has remained relatively flat for the past five quarters.
Non-interest Expense | ||||||||||||||||||||||||||||||
Non-interest Expense | Table 6 | |||||||||||||||||||||||||||||
Percent Change | ||||||||||||||||||||||||||||||
($ in thousands) | 4Q | 3Q | 4Q | 4Q12 vs | 4Q12 vs | YTD | YTD | Percent | ||||||||||||||||||||||
2012 | 2012 | 2011 | 3Q12 | 4Q11 | 2012 | 2011 | Change | |||||||||||||||||||||||
Compensation and employee benefits |
$ | 101,678 | $ | 98,409 | $ | 82,595 | 3.3 | % | 23.1 | % | $ | 393,841 | $ | 348,792 | 12.9 | % | ||||||||||||||
Occupancy and equipment | 32,809 | 33,006 | 32,366 | (.6 | ) | 1.4 | 130,792 | 126,437 | 3.4 | |||||||||||||||||||||
FDIC insurance | 8,671 | 6,899 | 6,647 | 25.7 | 30.4 | 30,425 | 28,747 | 5.8 | ||||||||||||||||||||||
Advertising and marketing | 4,303 | 4,248 | 2,250 | 1.3 | 91.2 | 16,572 | 10,034 | 65.2 | ||||||||||||||||||||||
Deposit account premiums | 523 | 485 | 6,482 | 7.8 | (91.9 | ) | 8,669 | 22,891 | (62.1 | ) | ||||||||||||||||||||
Operating lease depreciation | 5,905 | 6,325 | 6,811 | (6.6 | ) | (13.3 | ) | 25,378 | 30,007 | (15.4 | ) | |||||||||||||||||||
Other | 53,472 | 36,173 | 39,148 | 47.8 | 36.6 | 163,897 | 145,489 | 12.7 | ||||||||||||||||||||||
Core operating expenses | 207,361 | 185,545 | 176,299 | 11.8 | 17.6 | 769,574 | 712,397 | 8.0 | ||||||||||||||||||||||
Loss on termination of debt | - | - | - | - | - | 550,735 | - | N.M. | ||||||||||||||||||||||
Foreclosed real estate and repossessed assets, net |
7,582 | 10,670 | 11,323 | (28.9 | ) | (33.0 | ) | 41,358 | 49,238 | (16.0 | ) | |||||||||||||||||||
Other credit costs, net | (894 | ) | 593 | (89 | ) | N.M. | N.M. | 887 | 2,816 | (68.5 | ) | |||||||||||||||||||
Total non-interest expense | $ | 214,049 | $ | 196,808 | $ | 187,533 | 8.8 | 14.1 | $ | 1,362,554 | $ | 764,451 | 78.2 | |||||||||||||||||
N.M. = Not meaningful. | ||||||||||||||||||||||||||||||
- Compensation and employee benefits expense for the fourth quarter of 2012 increased $19.1 million, or 23.1 percent, from the fourth quarter of 2011. The increase was primarily due to increasing staff levels to support the growth of Gateway One, acquired in November 2011, as well as increased staffing levels to support the increased assets of the BRP program in Inventory Finance.
- The combined expense associated with advertising, marketing and deposit account premiums decreased $3.9 million from the fourth quarter of 2011. The decrease from the fourth quarter of 2011 is attributable to TCF’s shift in strategy for acquiring high quality accounts, through the reintroduction of a free checking product, versus the utilization of deposit account premiums.
- Included in other expense is $10 million for the civil money penalty assessed pursuant to previously disclosed deficiencies in TCF’s Bank Secrecy Act compliance program.
Capital | ||||||||||||||
Capital Information | Table 7 | |||||||||||||
At period end | ||||||||||||||
($ in thousands, except per-share data) | 4Q | 4Q | ||||||||||||
2012 | 2011 | |||||||||||||
Total equity | $ | 1,876,643 | $ | 1,878,627 | ||||||||||
Book value per common share | $ | 9.79 | $ | 11.65 | ||||||||||
Tangible realized common equity to tangible assets(1) | 7.52 | % | 8.42 | % | ||||||||||
Risk-based capital | ||||||||||||||
Tier 1 | $ | 1,633,336 | 11.09 | % | $ | 1,706,926 | 12.67 | % | ||||||
Total(2) | 2,007,835 | 13.63 | 1,994,875 | 14.80 | ||||||||||
Tier 1 leverage capital | $ | 1,633,336 | 9.21 | % | $ | 1,706,926 | 9.15 | % | ||||||
Tier 1 common capital(3) | $ | 1,356,826 | 9.21 | % | $ | 1,581,432 | 11.74 | % | ||||||
(1) Excludes the impact of goodwill, other intangibles and accumulated other comprehensive income (loss) (see “Reconciliation of GAAP to Non-GAAP Measures” table). |
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(2) The Company's capital ratios continue to be in excess of "Well-capitalized" regulatory benchmarks. | ||||||||||||||
(3) Excludes the effect of preferred shares, qualifying trust preferred securities and qualifying non-controlling interest in subsidiaries (see “Reconciliation of GAAP to Non-GAAP Measures” table). | ||||||||||||||
- During the fourth quarter of 2012, TCF issued $100 million of 6.45% Series B Non-Cumulative Perpetual Preferred Stock, par value $.01 per share, which qualifies as Tier 1 capital.
- On January 24, 2013, the Board of Directors of TCF declared a regular quarterly cash dividend of 5 cents per common share payable on February 28, 2013, to stockholders of record at the close of business on February 15, 2013. TCF also declared a dividend on the 7.50% Series A and 6.45% Series B Non-Cumulative Perpetual Preferred Stock payable on March 1, 2013, to stockholders of record at the close of business on February 15, 2013.
Webcast Information
A live webcast of TCF’s conference call to discuss 2012 year-end and fourth quarter earnings will be hosted at TCF’s website, http://ir.tcfbank.com, on January 30, 2013 at 8:00 a.m. CT. A slide presentation for the call will be available on the website prior to the call. Additionally, the webcast will be available for replay at TCF’s website after the conference call. The website also includes free access to company news releases, TCF’s annual report, investor presentations and SEC filings.
TCF is a Wayzata, Minnesota-based national bank holding company with $18.2 billion in total assets at December 31, 2012. TCF has nearly 430 branches in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana, Arizona and South Dakota, providing retail and commercial banking services. TCF, through its subsidiaries, also conducts commercial leasing and equipment finance business in all 50 states, commercial inventory finance business in the U.S. and Canada, and indirect auto finance business in over 40 states. For more information about TCF, please visit http://ir.tcfbank.com. |
Cautionary Statements for Purposes of the Safe Harbor Provisions of the Securities Litigation Reform Act
Any statements contained in this earnings release regarding the outlook for the Company’s businesses and their respective markets, such as projections of future performance, guidance, statements of the Company’s plans and objectives, forecasts of market trends and other matters, are forward-looking statements based on the Company’s assumptions and beliefs. Such statements may be identified by such words or phrases as “will likely result,” “are expected to,” “will continue,” “outlook,” “will benefit,” “is anticipated,” “estimate,” “project,” “management believes” or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those discussed in such statements and no assurance can be given that the results in any forward-looking statement will be achieved. For these statements, TCF claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Any forward-looking statement speaks only as of the date on which it is made, and we disclaim any obligation to subsequently revise any forward-looking statement to reflect events or circumstances after such date or to reflect the occurrence of anticipated or unanticipated events.
Certain factors could cause the Company’s future results to differ materially from those expressed or implied in any forward-looking statements contained in this earnings release. These factors include the factors discussed in Part I, Item 1A of the Company’s Annual Report on Form 10-K under the heading “Risk Factors,” the factors discussed below and any other cautionary statements, written or oral, which may be made or referred to in connection with any such forward-looking statements. Since it is not possible to foresee all such factors, these factors should not be considered as complete or exhaustive.
Adverse Economic or Business Conditions; Competitive Conditions; Credit and Other Risks. Deterioration in general economic and banking industry conditions, including defaults, anticipated defaults or rating agency downgrades of sovereign debt (including debt of the U.S.), or continued high rates of or increases in unemployment in TCF’s primary banking markets; adverse economic, business and competitive developments such as shrinking interest margins, reduced demand for financial services and loan and lease products, deposit outflows, deposit account attrition or an inability to increase the number of deposit accounts; customers completing financial transactions without using a bank; adverse changes in credit quality and other risks posed by TCF’s loan, lease, investment and securities available for sale portfolios, including declines in commercial or residential real estate values or changes in the allowance for loan and lease losses dictated by new market conditions or regulatory requirements; interest rate risks resulting from fluctuations in prevailing interest rates or other factors that result in a mismatch between yields earned on TCF’s interest-earning assets and the rates paid on its deposits and borrowings; foreign currency exchange risks; counterparty risk, including the risk of defaults by our counterparties or diminished availability of counterparties who satisfy our credit quality requirements; decreases in demand for the types of equipment that TCF leases or finances; the effect of any negative publicity.
Legislative and Regulatory Requirements. New consumer protection and supervisory requirements and regulations, including those resulting from action by the Consumer Financial Protection Bureau and changes in the scope of Federal preemption of state laws that could be applied to national banks; the imposition of requirements with an adverse impact relating to TCF’s lending, loan collection and other business activities as a result of the Dodd-Frank Act, or other legislative or regulatory developments such as mortgage foreclosure moratorium laws or imposition of underwriting or other limitations that impact the ability to use certain variable-rate products; impact of legislative, regulatory or other changes affecting customer account charges and fee income; changes to bankruptcy laws which would result in the loss of all or part of TCF’s security interest due to collateral value declines; deficiencies in TCF’s compliance under the Bank Secrecy Act in past or future periods, which may result in regulatory enforcement action including monetary penalties; increased health care costs resulting from Federal health care reform legislation; adverse regulatory examinations and resulting enforcement actions or other adverse consequences such as increased capital requirements or higher deposit insurance assessments; heightened regulatory practices, requirements or expectations, including, but not limited to, requirements related to the Bank Secrecy Act and anti-money laundering compliance activity.
Earnings/Capital Risks and Constraints, Liquidity Risks. Limitations on TCF’s ability to pay dividends or to increase dividends because of financial performance deterioration, regulatory restrictions or limitations; increased deposit insurance premiums, special assessments or other costs related to adverse conditions in the banking industry, the economic impact on banks of the Dodd-Frank Act and other regulatory reform legislation; the impact of financial regulatory reform, including additional capital, leverage, liquidity and risk management requirements or changes in the composition of qualifying regulatory capital (including those resulting from U.S. implementation of Basel III requirements); adverse changes in securities markets directly or indirectly affecting TCF’s ability to sell assets or to fund its operations; diminished unsecured borrowing capacity resulting from TCF credit rating downgrades and unfavorable conditions in the credit markets that restrict or limit various funding sources; costs associated with new regulatory requirements or interpretive guidance relating to liquidity; uncertainties relating to customer opt-in preferences with respect to overdraft fees on point of sale and ATM transactions or the success of TCF’s reintroduction of TCF Free CheckingSM which may have an adverse impact on TCF’s fee revenue; uncertainties relating to future retail deposit account changes, including limitations on TCF’s ability to predict customer behavior and the impact on TCF’s fee revenues.
Supermarket Branching Risk; Growth Risks. Adverse developments affecting TCF’s supermarket banking relationships or any of the supermarket chains in which TCF maintains supermarket branches, including the announcement on January 10, 2013 by SUPERVALU that it had entered into an agreement to sell several of its supermarket chains, including Jewel-Osco® in which TCF has 157 branches; slower than anticipated growth in existing or acquired businesses; inability to successfully execute on TCF’s growth strategy through acquisitions or cross-selling opportunities; failure to expand or diversify TCF’s balance sheet through programs or new opportunities; failure to successfully attract and retain new customers, including the failure to attract and retain manufacturers and dealers to expand the inventory finance business; product additions and addition of distribution channels (or entry into new markets) for existing products.
Technological and Operational Matters. Technological or operational difficulties, loss or theft of information, cyber-attacks and other security breaches, counterparty failures and the possibility that deposit account losses (fraudulent checks, etc.) may increase; failure to keep pace with technological change.
Litigation Risks. Results of litigation, including class action litigation concerning TCF’s lending or deposit activities including account servicing processes or fees or charges, or employment practices, and possible increases in indemnification obligations for certain litigation against Visa U.S.A. and potential reductions in card revenues resulting from such litigation or other litigation against Visa.
Accounting, Audit, Tax and Insurance Matters. Changes in accounting standards or interpretations of existing standards; federal or state monetary, fiscal or tax policies, including adoption of state legislation that would increase state taxes; ineffective internal controls; adverse state or Federal tax assessments or findings in tax audits; lack of or inadequate insurance coverage for claims against TCF; potential for claims and legal action related to TCF’s fiduciary responsibilities.
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||||
(Dollars in thousands, except per-share data) | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Three Months Ended December 31, | Change | ||||||||||||||||||
2012 | 2011 | $ | % | ||||||||||||||||
Interest income: | |||||||||||||||||||
Loans and leases | $ | 210,490 | $ | 205,415 | $ | 5,075 | 2.5 | % | |||||||||||
Securities available for sale | 4,615 | 22,559 | (17,944 | ) | (79.5 | ) | |||||||||||||
Investments and other | 3,922 | 2,333 | 1,589 | 68.1 | |||||||||||||||
Total interest income | 219,027 | 230,307 | (11,280 | ) | (4.9 | ) | |||||||||||||
Interest expense: | |||||||||||||||||||
Deposits | 10,972 | 9,791 | 1,181 | 12.1 | |||||||||||||||
Borrowings | 6,992 | 47,082 | (40,090 | ) | (85.1 | ) | |||||||||||||
Total interest expense | 17,964 | 56,873 | (38,909 | ) | (68.4 | ) | |||||||||||||
Net interest income | 201,063 | 173,434 | 27,629 | 15.9 | |||||||||||||||
Provision for credit losses | 48,520 | 59,249 | (10,729 | ) | (18.1 | ) | |||||||||||||
Net interest income after provision for credit losses |
152,543 | 114,185 | 38,358 | 33.6 | |||||||||||||||
Non-interest income: | |||||||||||||||||||
Fees and service charges | 44,262 | 51,002 | (6,740 | ) | (13.2 | ) | |||||||||||||
Card revenue | 12,974 | 13,643 | (669 | ) | (4.9 | ) | |||||||||||||
ATM revenue | 5,584 | 6,608 | (1,024 | ) | (15.5 | ) | |||||||||||||
Subtotal | 62,820 | 71,253 | (8,433 | ) | (11.8 | ) | |||||||||||||
Leasing and equipment finance | 26,149 | 18,492 | 7,657 | 41.4 | |||||||||||||||
Gain on sales of auto loans | 6,869 | 1,133 | 5,736 | N.M. | |||||||||||||||
Gain on sale of consumer real estate loans | 854 | - | 854 | N.M. | |||||||||||||||
Other | 3,973 | 1,570 | 2,403 | 153.1 | |||||||||||||||
Fees and other revenue | 100,665 | 92,448 | 8,217 | 8.9 | |||||||||||||||
(Losses) gains on securities, net | (528 | ) | 5,842 | (6,370 | ) | (109.0 | ) | ||||||||||||
Total non-interest income | 100,137 | 98,290 | 1,847 | 1.9 | |||||||||||||||
Non-interest expense: | |||||||||||||||||||
Compensation and employee benefits | 101,678 | 82,595 | 19,083 | 23.1 | |||||||||||||||
Occupancy and equipment | 32,809 | 32,366 | 443 | 1.4 | |||||||||||||||
FDIC insurance | 8,671 | 6,647 | 2,024 | 30.4 | |||||||||||||||
Advertising and marketing | 4,303 | 2,250 | 2,053 | 91.2 | |||||||||||||||
Deposit account premiums | 523 | 6,482 | (5,959 | ) | (91.9 | ) | |||||||||||||
Operating lease depreciation | 5,905 | 6,811 | (906 | ) | (13.3 | ) | |||||||||||||
Other | 53,472 | 39,148 | 14,324 | 36.6 | |||||||||||||||
Subtotal | 207,361 | 176,299 | 31,062 | 17.6 | |||||||||||||||
Foreclosed real estate and repossessed assets, net | 7,582 | 11,323 | (3,741 | ) | (33.0 | ) | |||||||||||||
Other credit costs, net | (894 | ) | (89 | ) | (805 | ) | N.M. | ||||||||||||
Total non-interest expense | 214,049 | 187,533 | 26,516 | 14.1 | |||||||||||||||
Income before income tax expense | 38,631 | 24,942 | 13,689 | 54.9 | |||||||||||||||
Income tax expense | 10,540 | 7,424 | 3,116 | 42.0 | |||||||||||||||
Income after income tax expense | 28,091 | 17,518 | 10,573 | 60.4 | |||||||||||||||
Income attributable to non-controlling interest | 1,306 | 1,075 | 231 | 21.5 | |||||||||||||||
Preferred stock dividends | 3,234 | - | 3,234 | N.M. | |||||||||||||||
Net income available to common stockholders | 23,551 | 16,443 | 7,108 | 43.2 | |||||||||||||||
Other comprehensive loss: | |||||||||||||||||||
Reclassification adjustment for securities gains included in net income |
- | (6,130 | ) | 6,130 | (100.0 | ) | |||||||||||||
Unrealized holding losses arising during the period on securities available for sale |
(8,589 | ) | (4,334 | ) | (4,255 | ) | (98.2 | ) | |||||||||||
Foreign currency hedge | 136 | (458 | ) | 594 | (129.7 | ) | |||||||||||||
Foreign currency translation adjustment | (170 | ) | 443 | (613 | ) | (138.4 | ) | ||||||||||||
Recognized postretirement prior service cost and transition obligation |
144 | 305 | (161 | ) | (52.8 | ) | |||||||||||||
Income tax expense | 2,855 | 3,890 | (1,035 | ) | (26.6 | ) | |||||||||||||
Total other comprehensive loss | (5,624 | ) | (6,284 | ) | 660 | 10.5 | |||||||||||||
Comprehensive income | $ | 17,927 | $ | 10,159 | $ | 7,768 | 76.5 | ||||||||||||
Net income per common share: | |||||||||||||||||||
Basic | $ | .15 | $ | .10 | $ | .05 | 50.0 | ||||||||||||
Diluted | .15 | .10 | .05 | 50.0 | |||||||||||||||
Dividends declared per common share | $ | .05 | $ | .05 | $ | - | - | ||||||||||||
|
|||||||||||||||||||
Average common and common equivalent shares outstanding (in thousands): |
|||||||||||||||||||
Basic | 159,914 | 157,829 | 2,085 | 1.3 | |||||||||||||||
Diluted | 160,500 | 158,152 | 2,348 | 1.5 | |||||||||||||||
N.M. Not meaningful. | |||||||||||||||||||
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||||
(Dollars in thousands, except per-share data) | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Year Ended December 31, | Change | ||||||||||||||||||
2012 | 2011 | $ | % | ||||||||||||||||
Interest income: | |||||||||||||||||||
Loans and leases | $ | 835,380 | $ | 844,796 | $ | (9,416 | ) | (1.1 | ) | % | |||||||||
Securities available for sale | 35,150 | 85,188 | (50,038 | ) | (58.7 | ) | |||||||||||||
Investments and other | 14,093 | 7,967 | 6,126 | 76.9 | |||||||||||||||
Total interest income | 884,623 | 937,951 | (53,328 | ) | (5.7 | ) | |||||||||||||
Interest expense: | |||||||||||||||||||
Deposits | 40,987 | 45,108 | (4,121 | ) | (9.1 | ) | |||||||||||||
Borrowings | 63,617 | 193,155 | (129,538 | ) | (67.1 | ) | |||||||||||||
Total interest expense | 104,604 | 238,263 | (133,659 | ) | (56.1 | ) | |||||||||||||
Net interest income | 780,019 | 699,688 | 80,331 | 11.5 | |||||||||||||||
Provision for credit losses | 247,443 | 200,843 | 46,600 | 23.2 | |||||||||||||||
Net interest income after provision for credit losses |
532,576 | 498,845 | 33,731 | 6.8 | |||||||||||||||
Non-interest income: | |||||||||||||||||||
Fees and service charges | 177,953 | 219,363 | (41,410 | ) | (18.9 | ) | |||||||||||||
Card revenue | 52,638 | 96,147 | (43,509 | ) | (45.3 | ) | |||||||||||||
ATM revenue | 24,181 | 27,927 | (3,746 | ) | (13.4 | ) | |||||||||||||
Subtotal | 254,772 | 343,437 | (88,665 | ) | (25.8 | ) | |||||||||||||
Leasing and equipment finance | 92,721 | 89,167 | 3,554 | 4.0 | |||||||||||||||
Gain on sales of auto loans | 22,101 | 1,133 | 20,968 | N.M. | |||||||||||||||
Gain on sale of consumer real estate loans | 5,413 | - | 5,413 | N.M. | |||||||||||||||
Other | 13,184 | 3,434 | 9,750 | N.M. | |||||||||||||||
Fees and other revenue | 388,191 | 437,171 | (48,980 | ) | (11.2 | ) | |||||||||||||
Gains on securities, net | 102,232 | 7,263 | 94,969 | N.M. | |||||||||||||||
Total non-interest income | 490,423 | 444,434 | 45,989 | 10.3 | |||||||||||||||
Non-interest expense: | |||||||||||||||||||
Compensation and employee benefits | 393,841 | 348,792 | 45,049 | 12.9 | |||||||||||||||
Occupancy and equipment | 130,792 | 126,437 | 4,355 | 3.4 | |||||||||||||||
FDIC insurance | 30,425 | 28,747 | 1,678 | 5.8 | |||||||||||||||
Advertising and marketing | 16,572 | 10,034 | 6,538 | 65.2 | |||||||||||||||
Deposit account premiums | 8,669 | 22,891 | (14,222 | ) | (62.1 | ) | |||||||||||||
Operating lease depreciation | 25,378 | 30,007 | (4,629 | ) | (15.4 | ) | |||||||||||||
Other | 163,897 | 145,489 | 18,408 | 12.7 | |||||||||||||||
Subtotal | 769,574 | 712,397 | 57,177 | 8.0 | |||||||||||||||
Loss on termination of debt | 550,735 | - | 550,735 | N.M. | |||||||||||||||
Foreclosed real estate and repossessed assets, net | 41,358 | 49,238 | (7,880 | ) | (16.0 | ) | |||||||||||||
Other credit costs, net | 887 | 2,816 | (1,929 | ) | (68.5 | ) | |||||||||||||
Total non-interest expense | 1,362,554 | 764,451 | 598,103 | 78.2 | |||||||||||||||
(Loss) income before income tax expense | (339,555 | ) | 178,828 | (518,383 | ) | N.M. | |||||||||||||
Income tax (benefit) expense | (132,858 | ) | 64,441 | (197,299 | ) | N.M. | |||||||||||||
(Loss) income after income tax expense | (206,697 | ) | 114,387 | (321,084 | ) | N.M. | |||||||||||||
Income attributable to non-controlling interest | 6,187 | 4,993 | 1,194 | 23.9 | |||||||||||||||
Preferred stock dividends | 5,606 | - | 5,606 | N.M. | |||||||||||||||
Net (loss) income available to common stockholders | (218,490 | ) | 109,394 | (327,884 | ) | N.M. | |||||||||||||
Other comprehensive (loss) income: | |||||||||||||||||||
Reclassification adjustment for securities gains included in net income |
(89,879 | ) | (8,045 | ) | (81,834 | ) | N.M. | ||||||||||||
Unrealized holding gains arising during the period on securities available for sale |
19,794 | 122,638 | (102,844 | ) | (83.9 | ) | |||||||||||||
Foreign currency hedge | (630 | ) | 261 | (891 | ) | N.M. | |||||||||||||
Foreign currency translation adjustment | 531 | (433 | ) | 964 | N.M. | ||||||||||||||
Recognized postretirement prior service cost and transition obligation |
123 | 308 | (185 | ) | (60.1 | ) | |||||||||||||
Income tax expense (benefit) | 25,678 | (42,211 | ) | 67,889 | (160.8 | ) | |||||||||||||
Total other comprehensive (loss) income | (44,383 | ) | 72,518 | (116,901 | ) | (161.2 | ) | ||||||||||||
Comprehensive (loss) income | $ | (262,873 | ) | $ | 181,912 | $ | (444,785 | ) | N.M. | ||||||||||
Net (loss) income per common share: | |||||||||||||||||||
Basic | $ | (1.37 | ) | $ | .71 | $ | (2.08 | ) | N.M. | ||||||||||
Diluted | (1.37 | ) | .71 | (2.08 | ) | N.M. | |||||||||||||
Dividends declared per common share | $ | .20 | $ | .20 | $ | - | - | ||||||||||||
Average common and common equivalent shares outstanding (in thousands): |
|||||||||||||||||||
Basic | 159,269 | 154,222 | 5,047 | 3.3 | |||||||||||||||
Diluted | 159,269 | 154,509 | 4,760 | 3.1 | |||||||||||||||
N.M. Not meaningful. | |||||||||||||||||||
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||||||||||||||
(Dollars in thousands, except per-share data) | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
At Dec. 31 | At Dec. 31 | Change | |||||||||||||||||
2012 | 2011 | $ | % | ||||||||||||||||
ASSETS | |||||||||||||||||||
Cash and due from banks | $ | 1,100,347 | $ | 1,389,704 | $ | (289,357 | ) | (20.8 | ) | % | |||||||||
Investments | 120,867 | 157,780 | (36,913 | ) | (23.4 | ) | |||||||||||||
Securities available for sale | 712,091 | 2,324,038 | (1,611,947 | ) | (69.4 | ) | |||||||||||||
Loans and leases held for sale | 10,289 | 14,321 | (4,032 | ) | (28.2 | ) | |||||||||||||
Loans and leases: | |||||||||||||||||||
Consumer real estate | 6,674,501 | 6,895,291 | (220,790 | ) | (3.2 | ) | |||||||||||||
Commercial | 3,405,235 | 3,449,492 | (44,257 | ) | (1.3 | ) | |||||||||||||
Leasing and equipment finance | 3,198,017 | 3,142,259 | 55,758 | 1.8 | |||||||||||||||
Inventory finance | 1,567,214 | 624,700 | 942,514 | 150.9 | |||||||||||||||
Auto finance | 552,833 | 3,628 | 549,205 | N.M. | |||||||||||||||
Other loans and leases | 27,924 | 34,885 | (6,961 | ) | (20.0 | ) | |||||||||||||
Total loans and leases | 15,425,724 | 14,150,255 | 1,275,469 | 9.0 | |||||||||||||||
Allowance for loan and lease losses | (267,128 | ) | (255,672 | ) | (11,456 | ) | (4.5 | ) | |||||||||||
Net loans and leases | 15,158,596 | 13,894,583 | 1,264,013 | 9.1 | |||||||||||||||
Premises and equipment, net | 440,466 | 436,281 | 4,185 | 1.0 | |||||||||||||||
Goodwill | 225,640 | 225,640 | - | - | |||||||||||||||
Other assets | 457,621 | 537,041 | (79,420 | ) | (14.8 | ) | |||||||||||||
Total assets | $ | 18,225,917 | $ | 18,979,388 | $ | (753,471 | ) | (4.0 | ) | ||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Checking | $ | 4,834,632 | $ | 4,629,749 | $ | 204,883 | 4.4 | ||||||||||||
Savings | 6,104,104 | 5,855,263 | 248,841 | 4.2 | |||||||||||||||
Money market | 820,553 | 651,377 | 169,176 | 26.0 | |||||||||||||||
Subtotal | 11,759,289 | 11,136,389 | 622,900 | 5.6 | |||||||||||||||
Certificates of deposit | 2,291,497 | 1,065,615 | 1,225,882 | 115.0 | |||||||||||||||
Total deposits | 14,050,786 | 12,202,004 | 1,848,782 | 15.2 | |||||||||||||||
Short-term borrowings | 2,619 | 6,416 | (3,797 | ) | (59.2 | ) | |||||||||||||
Long-term borrowings | 1,931,196 | 4,381,664 | (2,450,468 | ) | (55.9 | ) | |||||||||||||
Total borrowings | 1,933,815 | 4,388,080 | (2,454,265 | ) | (55.9 | ) | |||||||||||||
Accrued expenses and other liabilities | 364,673 | 510,677 | (146,004 | ) | (28.6 | ) | |||||||||||||
Total liabilities | 16,349,274 | 17,100,761 | (751,487 | ) | (4.4 | ) | |||||||||||||
Equity: | |||||||||||||||||||
Preferred stock, par value $.01 per share, 30,000,000 authorized; and 4,006,900 shares issued |
263,240 | - | 263,240 | N.M. | |||||||||||||||
Common stock, par value $.01 per share, 280,000,000 shares authorized; 163,428,763 and 160,366,380 shares issued |
1,634 | 1,604 | 30 | 1.9 | |||||||||||||||
Additional paid-in capital | 750,040 | 715,247 | 34,793 | 4.9 | |||||||||||||||
Retained earnings, subject to certain restrictions | 877,445 | 1,127,823 | (250,378 | ) | (22.2 | ) | |||||||||||||
Accumulated other comprehensive income | 12,443 | 56,826 | (44,383 | ) | (78.1 | ) | |||||||||||||
Treasury stock at cost, 42,566 shares, and other | (41,429 | ) | (33,367 | ) | (8,062 | ) | (24.2 | ) | |||||||||||
Total TCF Financial Corporation stockholders' equity | 1,863,373 | 1,868,133 | (4,760 | ) | (.3 | ) | |||||||||||||
Non-controlling interest in subsidiaries | 13,270 | 10,494 | 2,776 | 26.5 | |||||||||||||||
Total equity | 1,876,643 | 1,878,627 | (1,984 | ) | (.1 | ) | |||||||||||||
Total liabilities and equity | $ | 18,225,917 | $ | 18,979,388 | $ | (753,471 | ) | (4.0 | ) | ||||||||||
N.M. Not meaningful. | |||||||||||||||||||
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||
SUMMARY OF CREDIT QUALITY DATA | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||||
At | At | At | At | At | Change from | ||||||||||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Dec. 31, | |||||||||||||||||||||||||||||||||
2012 | 2012 | 2012 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||||||||||||
Delinquency Data - Principal Balances (1) |
|||||||||||||||||||||||||||||||||||||||
60 days or more: | |||||||||||||||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||||||||||||
First mortgage lien | $ | 76,020 | $ | 80,153 | $ | 86,714 | $ | 88,092 | $ | 87,358 | $ | (4,133 | ) | $ | (11,338 | ) | |||||||||||||||||||||||
Junior lien | 13,141 | 13,388 | 13,967 | 15,563 | 22,277 | (247 | ) | (9,136 | ) | ||||||||||||||||||||||||||||||
Total consumer real estate | 89,161 | 93,541 | 100,681 | 103,655 | 109,635 | (4,380 | ) | (20,474 | ) | ||||||||||||||||||||||||||||||
Commercial | 2,630 | 2,652 | 5,616 | 3,425 | 1,148 | (22 | ) | 1,482 | |||||||||||||||||||||||||||||||
Leasing and equipment finance | 2,568 | 1,554 | 1,492 | 4,919 | 3,512 | 1,014 | (944 | ) | |||||||||||||||||||||||||||||||
Inventory finance | 119 | 80 | 206 | 185 | 160 | 39 | (41 | ) | |||||||||||||||||||||||||||||||
Auto finance | 532 | 305 | 62 | 2 | - | 227 | 532 | ||||||||||||||||||||||||||||||||
Other | 31 | 22 | 34 | 52 | 41 | 9 | (10 | ) | |||||||||||||||||||||||||||||||
Subtotal | 95,041 | 98,154 | 108,091 | 112,238 | 114,496 | (3,113 | ) | (19,455 | ) | ||||||||||||||||||||||||||||||
Acquired portfolios | 982 | 1,069 | 1,483 | 2,198 | 3,140 | (87 | ) | (2,158 | ) | ||||||||||||||||||||||||||||||
Total delinquencies | $ | 96,023 | $ | 99,223 | $ | 109,574 | $ | 114,436 | $ | 117,636 | $ | (3,200 | ) | $ | (21,613 | ) | |||||||||||||||||||||||
Delinquency Data - % of Portfolio (1) |
|||||||||||||||||||||||||||||||||||||||
60 days or more: | |||||||||||||||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||||||||||||
First mortgage lien | 1.88 | % | 1.93 | % | 1.93 | % | 1.93 | % | 1.89 | % | (5 | ) | bps | (1 | ) | bps | |||||||||||||||||||||||
Junior lien | .55 | .59 | .64 | .74 | 1.04 | (4 | ) | (49 | ) | ||||||||||||||||||||||||||||||
Total consumer real estate | 1.38 | 1.46 | 1.51 | 1.55 | 1.63 | (8 | ) | (25 | ) | ||||||||||||||||||||||||||||||
Commercial | .08 | .08 | .17 | .10 | .03 | - | 5 | ||||||||||||||||||||||||||||||||
Leasing and equipment finance | .08 | .05 | .05 | .17 | .13 | 3 | (5 | ) | |||||||||||||||||||||||||||||||
Inventory finance | .01 | .01 | .01 | .01 | .03 | - | (2 | ) | |||||||||||||||||||||||||||||||
Auto finance | .10 | .08 | .02 | - | - | 2 | 10 | ||||||||||||||||||||||||||||||||
Other | .12 | .09 | .13 | .20 | .12 | 3 | - | ||||||||||||||||||||||||||||||||
Subtotal | .64 | .67 | .74 | .77 | .85 | (3 | ) | (21 | ) | ||||||||||||||||||||||||||||||
Acquired portfolios | .58 | .50 | .58 | .66 | .84 | 8 | (26 | ) | |||||||||||||||||||||||||||||||
Total delinquencies | .64 | .67 | .73 | .77 | .85 | (3 | ) | (21 | ) | ||||||||||||||||||||||||||||||
(1) Excludes non-accrual loans and leases. | |||||||||||||||||||||||||||||||||||||||
At | At | At | At | At | Change from | ||||||||||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Dec. 31, | |||||||||||||||||||||||||||||||||
2012 | 2012 | 2012 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||||||||||||
Non-Accrual Loans and Leases |
|||||||||||||||||||||||||||||||||||||||
Non-accrual loans and leases: | |||||||||||||||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||||||||||||
First mortgage lien | $ | 199,631 | $ | 197,649 | $ | 122,406 | $ | 125,895 | $ | 129,114 | $ | 1,982 | $ | 70,517 | |||||||||||||||||||||||||
Junior lien | 35,269 | 35,936 | 18,272 | 23,409 | 20,257 | (667 | ) | 15,012 | |||||||||||||||||||||||||||||||
Total consumer real estate | 234,900 | 233,585 | 140,678 | 149,304 | 149,371 | 1,315 | 85,529 | ||||||||||||||||||||||||||||||||
Commercial | 127,746 | 169,339 | 150,215 | 135,677 | 127,519 | (41,593 | ) | 227 | |||||||||||||||||||||||||||||||
Leasing and equipment finance | 13,652 | 15,812 | 29,429 | 20,015 | 20,583 | (2,160 | ) | (6,931 | ) | ||||||||||||||||||||||||||||||
Inventory finance | 1,487 | 1,120 | 1,900 | 1,109 | 823 | 367 | 664 | ||||||||||||||||||||||||||||||||
Auto finance | 101 | - | - | - | - | 101 | 101 | ||||||||||||||||||||||||||||||||
Other | 1,571 | 1,957 | 2,204 | 2,838 | 15 | (386 | ) | 1,556 | |||||||||||||||||||||||||||||||
Total non-accrual loans and leases | $ | 379,457 | $ | 421,813 | $ | 324,426 | $ | 308,943 | $ | 298,311 | $ | (42,356 | ) | $ | 81,146 | ||||||||||||||||||||||||
Non-accrual loans and leases - rollforward | |||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 421,813 | $ | 324,426 | $ | 308,943 | $ | 298,311 | $ | 307,672 | $ | 97,387 | $ | 114,141 | |||||||||||||||||||||||||
Additions | 88,235 | 210,916 | 111,739 | 85,670 | 125,893 | (122,681 | ) | (37,658 | ) | ||||||||||||||||||||||||||||||
Charge-offs | (27,657 | ) | (49,116 | ) | (28,228 | ) | (19,683 | ) | (38,263 | ) | 21,459 | 10,606 | |||||||||||||||||||||||||||
Transfers to other assets | (17,305 | ) | (24,632 | ) | (34,473 | ) | (25,603 | ) | (31,486 | ) | 7,327 | 14,181 | |||||||||||||||||||||||||||
Return to accrual status | (55,261 | ) | (30,300 | ) | (22,200 | ) | (21,243 | ) | (19,932 | ) | (24,961 | ) | (35,329 | ) | |||||||||||||||||||||||||
Payments received | (30,832 | ) | (9,652 | ) | (12,261 | ) | (9,202 | ) | (45,238 | ) | (21,180 | ) | 14,406 | ||||||||||||||||||||||||||
Other, net | 464 | 171 | 906 | 693 | (335 | ) | 293 | 799 | |||||||||||||||||||||||||||||||
Balance, end of period | $ | 379,457 | $ | 421,813 | $ | 324,426 | $ | 308,943 | $ | 298,311 | $ | (42,356 | ) | $ | 81,146 | ||||||||||||||||||||||||
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
SUMMARY OF CREDIT QUALITY DATA, CONTINUED | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Change from | ||||||||||||||||||||||||||||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Dec 31, | ||||||||||||||||||||||||||
2012 | 2012 | 2012 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||||||||
Other Real Estate Owned |
||||||||||||||||||||||||||||||||
Other real estate owned (1) | ||||||||||||||||||||||||||||||||
Consumer real estate | $ | 69,599 | $ | 85,764 | $ | 83,176 | $ | 84,996 | $ | 87,792 | $ | (16,165 | ) | $ | (18,193 | ) | ||||||||||||||||
Commercial real estate | 27,379 | 34,662 | 42,700 | 42,232 | 47,106 | (7,283 | ) | (19,727 | ) | |||||||||||||||||||||||
Total other real estate owned | $ | 96,978 | $ | 120,426 | $ | 125,876 | $ | 127,228 | $ | 134,898 | $ | (23,448 | ) | $ | (37,920 | ) | ||||||||||||||||
Other real estate owned - rollforward | ||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 120,426 | $ | 125,876 | $ | 127,228 | $ | 134,898 | $ | 130,414 | $ | (5,450 | ) | $ | (9,988 | ) | ||||||||||||||||
Transferred in | 18,444 | 26,097 | 33,739 | 25,624 | 33,864 | (7,653 | ) | (15,420 | ) | |||||||||||||||||||||||
Sales | (39,528 | ) | (28,479 | ) | (29,448 | ) | (28,601 | ) | (25,909 | ) | (11,049 | ) | (13,619 | ) | ||||||||||||||||||
Writedowns | (4,614 | ) | (3,493 | ) | (6,237 | ) | (5,267 | ) | (5,719 | ) | (1,121 | ) | 1,105 | |||||||||||||||||||
Other, net | 2,250 | 425 | 594 | 574 | 2,248 | 1,825 | 2 | |||||||||||||||||||||||||
Balance, end of period | $ | 96,978 | $ | 120,426 | $ | 125,876 | $ | 127,228 | $ | 134,898 | $ | (23,448 | ) | $ | (37,920 | ) | ||||||||||||||||
Ending number of properties owned | ||||||||||||||||||||||||||||||||
Consumer real estate | 418 | 425 | 426 | 466 | 465 | (7 | ) | (47 | ) | |||||||||||||||||||||||
Commercial real estate | 18 | 26 | 32 | 32 | 33 | (8 | ) | (15 | ) | |||||||||||||||||||||||
Total | 436 | 451 | 458 | 498 | 498 | (15 | ) | (62 | ) | |||||||||||||||||||||||
(1) Includes properties owned and foreclosed properties subject to redemption. | ||||||||||||||||||||||||||||||||
Change from | ||||||||||||||||||||||||||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Dec 31, | ||||||||||||||||||||||||
2012 | 2012 | 2012 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||||||
Non-Performing Assets |
||||||||||||||||||||||||||||||
Non-accrual loans and leases | $ | 261,796 | $ | 318,611 | $ | 324,426 | $ | 308,943 | $ | 298,311 | $ | (56,815 | ) | $ | (36,515 | ) | ||||||||||||||
Loans discharged in bankruptcy(1) | 117,661 | 103,202 | - | - | - | 14,459 | 117,661 | |||||||||||||||||||||||
Other real estate owned | 96,978 | 120,426 | 125,876 | 127,228 | 134,898 | (23,448 | ) | (37,920 | ) | |||||||||||||||||||||
Total non-performing assets | $ | 476,435 | $ | 542,239 | $ | 450,302 | $ | 436,171 | $ | 433,209 | $ | (65,804 | ) | $ | 43,226 | |||||||||||||||
Percent of total loans and leases and other real estate owned | 3.07 | % | 3.54 | % | 2.93 | % | 2.84 | % | 3.03 | % | (47 | ) | bps | 4 | bps | |||||||||||||||
|
(1) |
Consumer real estate loans required to be reported as nonaccrual loans, regardless of delinquency status, due to the implementation of clarifying regulatory guidance in the third quarter of 2012, related to the discharge of a borrowers' personal liability following Chapter 7 bankruptcy proceedings. |
|
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||
SUMMARY OF CREDIT QUALITY DATA, CONTINUED | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses |
||||||||||||||||||||||||||||||||||
At December 31, 2012 | At September 30, 2012 | At December 31, 2011 | Change from | |||||||||||||||||||||||||||||||
% of | % of | % of | Sep. 30, | Dec. 31, | ||||||||||||||||||||||||||||||
Balance | Portfolio | Balance | Portfolio | Balance | Portfolio | 2012 | 2011 | |||||||||||||||||||||||||||
Consumer real estate | $ | 182,013 | 2.73 | % | $ | 178,942 | 2.69 | % | $ | 183,435 | 2.66 |
% |
|
4 | bps | 7 | bps | |||||||||||||||||
Commercial | 51,575 | 1.51 | 53,756 | 1.53 | 46,954 | 1.36 | (2 | ) | 15 | |||||||||||||||||||||||||
Leasing and equipment finance |
21,037 | .66 | 21,331 | .68 | 21,173 | .67 | (2 | ) | (1 | ) | ||||||||||||||||||||||||
Inventory finance | 7,569 | .48 | 7,003 | .48 | 2,996 | .48 | - | - | ||||||||||||||||||||||||||
Auto finance | 4,136 | .75 | 3,059 | .75 | - | - | - | N.M. | ||||||||||||||||||||||||||
Other | 798 | 2.86 | 750 | 2.72 | 1,114 | 3.19 | 14 | (33 | ) | |||||||||||||||||||||||||
Total | $ | 267,128 | 1.73 | $ | 264,841 | 1.74 | $ | 255,672 | 1.81 | (1 | ) | (8 | ) | |||||||||||||||||||||
Net Charge-Offs |
||||||||||||||||||||||||||||||||||
Change from | ||||||||||||||||||||||||||||||||||
Quarter Ended | Quarter Ended | |||||||||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Dec. 31, | ||||||||||||||||||||||||||||
2012 | 2012 | 2012 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||||||||||
Consumer real estate | ||||||||||||||||||||||||||||||||||
First mortgage lien | $ | 22,163 | 40,469 | 18,369 | 19,526 | 23,081 | (18,306 | ) | (918 | ) | ||||||||||||||||||||||||
Junior lien | 11,757 | 34,202 | 16,487 | 16,162 | 14,219 | (22,445 | ) | (2,462 | ) | |||||||||||||||||||||||||
Total consumer real estate | 33,920 | 74,671 | 34,856 | 35,688 | 37,300 | (40,751 | ) | (3,380 | ) | |||||||||||||||||||||||||
Commercial | 8,351 | 20,547 | 8,455 | 1,524 | 15,577 | (12,196 | ) | (7,226 | ) | |||||||||||||||||||||||||
Leasing and equipment finance | 1,345 | 7,521 | 1,173 | 151 | 3,473 | (6,176 | ) | (2,128 | ) | |||||||||||||||||||||||||
Inventory finance | 193 | 444 | 225 | 643 | 53 | (251 | ) | 140 | ||||||||||||||||||||||||||
Auto finance | 771 | 280 | 81 | 2 | - | 491 | 771 | |||||||||||||||||||||||||||
Other | 940 | 991 | 69 | 925 | 1,519 | (51 | ) | (579 | ) | |||||||||||||||||||||||||
Total | $ | 45,520 | $ | 104,454 |
|
$ |
44,859 | $ | 38,933 | $ | 57,922 | $ | (58,934 | ) |
|
$ |
(12,402 | ) | ||||||||||||||||
Net Charge-Offs as a Percentage of Average Loans and Leases |
||||||||||||||||||||||||||||||||||
Change from | ||||||||||||||||||||||||||||||||||
Quarter Ended (1) | Quarter Ended | |||||||||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Dec. 31, | ||||||||||||||||||||||||||||
2012 | 2012 | 2012 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||||||||||
Consumer real estate | ||||||||||||||||||||||||||||||||||
First mortgage lien | 2.06 | % | 3.60 | % | 1.58 | % | 1.66 |
% |
|
1.94 |
% |
|
(154 | ) | bps | 12 | bps | |||||||||||||||||
Junior lien | 1.99 | 6.12 | 3.07 | 3.03 | 2.63 | (413 | ) | (64 | ) | |||||||||||||||||||||||||
Total consumer real estate | 2.04 | 4.44 | 2.05 | 2.09 | 2.15 | (240 | ) | (11 | ) | |||||||||||||||||||||||||
Commercial | .97 | 2.32 | .97 | .18 | 1.79 | (135 | ) | (82 | ) | |||||||||||||||||||||||||
Leasing and equipment finance | .17 | .95 | .15 | .02 | .46 | (78 | ) | (29 | ) | |||||||||||||||||||||||||
Inventory finance | .05 | .12 | .06 | .22 | .03 | (7 | ) | 2 | ||||||||||||||||||||||||||
Auto finance | .61 | .30 | .14 | .01 | - | 31 | N.M. | |||||||||||||||||||||||||||
Other | N.M. | N.M. | N.M. | N.M. | N.M. | N.M. | N.M. | |||||||||||||||||||||||||||
Total | 1.18 | 2.74 | 1.18 | 1.06 | 1.63 | (156 | ) | (45 | ) | |||||||||||||||||||||||||
(1) Annualized. | ||||||||||||||||||||||||||||||||||
N.M. Not Meaningful. | ||||||||||||||||||||||||||||||||||
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
Three Months Ended December 31, | ||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||
Average | Yields and | Average | Yields and | |||||||||||||||||||
Balance | Interest | Rates(1) (2) | Balance | Interest | Rates(1) (2) | |||||||||||||||||
ASSETS: | ||||||||||||||||||||||
Investments and other | $ | 642,580 | $ | 2,854 | 1.77 | % | $ | 1,046,883 | $ | 2,202 | .84 | % | ||||||||||
U.S. Government sponsored entities: | ||||||||||||||||||||||
Mortgage-backed securities, fixed-rate | 699,528 | 4,614 | 2.64 | 2,381,193 | 22,557 | 3.79 | ||||||||||||||||
Other securities | 115 | 1 | 2.52 | 237 | 2 | 3.36 | ||||||||||||||||
Total securities available for sale(3) | 699,643 | 4,615 | 2.64 | 2,381,430 | 22,559 | 3.79 | ||||||||||||||||
Loans and leases held for sale | 53,140 | 1,068 | 8.00 | 4,822 | 131 | 10.78 | ||||||||||||||||
Loans and leases: | ||||||||||||||||||||||
Consumer real estate: | ||||||||||||||||||||||
Fixed-rate | 4,012,702 | 59,968 | 5.95 | 4,528,165 | 68,919 | 6.04 | ||||||||||||||||
Variable-rate | 2,650,958 | 33,817 | 5.07 | 2,404,886 | 30,841 | 5.09 | ||||||||||||||||
Total consumer real estate | 6,663,660 | 93,785 | 5.60 | 6,933,051 | 99,760 | 5.71 | ||||||||||||||||
Commercial: | ||||||||||||||||||||||
Fixed- and adjustable-rate | 2,614,824 | 36,776 | 5.60 | 2,775,219 | 39,734 | 5.68 | ||||||||||||||||
Variable-rate | 837,944 | 7,475 | 3.55 | 701,441 | 7,569 | 4.28 | ||||||||||||||||
Total commercial | 3,452,768 | 44,251 | 5.10 | 3,476,660 | 47,303 | 5.40 | ||||||||||||||||
Leasing and equipment finance | 3,184,540 | 41,729 | 5.24 | 3,043,329 | 44,762 | 5.88 | ||||||||||||||||
Inventory finance | 1,570,829 | 24,124 | 6.11 | 766,885 | 13,767 | 7.12 | ||||||||||||||||
Auto finance | 504,565 | 7,016 | 5.53 | 1,442 | 12 | 3.30 | ||||||||||||||||
Other | 14,704 | 307 | 8.31 | 17,944 | 403 | 8.91 | ||||||||||||||||
Total loans and leases | 15,391,066 | 211,212 | 5.47 | 14,239,311 | 206,007 | 5.75 | ||||||||||||||||
Total interest-earning assets | 16,786,429 | 219,749 | 5.21 | 17,672,446 | 230,899 | 5.20 | ||||||||||||||||
Other assets | 1,161,959 | 1,248,000 | ||||||||||||||||||||
Total assets | $ | 17,948,388 | $ | 18,920,446 | ||||||||||||||||||
LIABILITIES AND EQUITY: | ||||||||||||||||||||||
Non-interest bearing deposits: | ||||||||||||||||||||||
Retail | $ | 1,294,027 | $ | 1,330,462 | ||||||||||||||||||
Small business | 775,334 | 738,867 | ||||||||||||||||||||
Commercial and custodial | 329,919 | 303,216 | ||||||||||||||||||||
Total non-interest bearing deposits | 2,399,280 | 2,372,545 | ||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||
Checking | 2,248,481 | 625 | .11 | 2,096,340 | 818 | .15 | ||||||||||||||||
Savings | 6,083,168 | 4,511 | .29 | 5,859,147 | 6,254 | .42 | ||||||||||||||||
Money market | 819,596 | 716 | .35 | 662,024 | 620 | .37 | ||||||||||||||||
Subtotal | 9,151,245 | 5,852 | .25 | 8,617,511 | 7,692 | .35 | ||||||||||||||||
Certificates of deposit | 2,206,173 | 5,120 | .92 | 1,112,735 | 2,099 | .75 | ||||||||||||||||
Total interest-bearing deposits | 11,357,418 | 10,972 | .38 | 9,730,246 | 9,791 | .40 | ||||||||||||||||
Total deposits | 13,756,698 | 10,972 | .32 | 12,102,791 | 9,791 | .32 | ||||||||||||||||
Borrowings: | ||||||||||||||||||||||
Short-term borrowings | 47,715 |
49 |
.41 |
37,081 | 27 | .29 | ||||||||||||||||
Long-term borrowings | 1,928,507 |
6,943 |
1.44 |
4,387,036 | 47,055 | 4.26 | ||||||||||||||||
Total borrowings | 1,976,222 | 6,992 | 1.41 | 4,424,117 | 47,082 | 4.23 | ||||||||||||||||
Total interest-bearing liabilities | 13,333,640 | 17,964 | .54 | 14,154,363 | 56,873 | 1.59 | ||||||||||||||||
Total deposits and borrowings | 15,732,920 | 17,964 | .45 | 16,526,908 | 56,873 | 1.37 | ||||||||||||||||
Other liabilities | 434,471 | 538,148 | ||||||||||||||||||||
Total liabilities | 16,167,391 | 17,065,056 | ||||||||||||||||||||
Total TCF Financial Corporation stockholders' equity | 1,768,002 | 1,850,968 | ||||||||||||||||||||
Non-controlling interest in subsidiaries | 12,995 | 4,422 | ||||||||||||||||||||
Total equity | 1,780,997 | 1,855,390 | ||||||||||||||||||||
Total liabilities and equity | $ | 17,948,388 | $ | 18,920,446 | ||||||||||||||||||
Net interest income and margin | $ | 201,785 | 4.79 | $ | 174,026 | 3.92 | ||||||||||||||||
(1) Annualized. | ||||||||||||||||||||||
(2) Interest and yields are presented on a fully tax equivalent basis. | ||||||||||||||||||||||
(3) Average balances and yields of securities available for sale are based upon the historical amortized cost and excludes equity securities. | ||||||||||||||||||||||
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||
Average | Yields and | Average | Yields and | |||||||||||||||||||
Balance | Interest |
Rates(1) |
Balance | Interest |
Rates(1) |
|||||||||||||||||
ASSETS: | ||||||||||||||||||||||
Investments and other | $ | 574,422 | $ | 10,404 | 1.81 | % | $ | 820,981 | $ | 7,836 | .95 | % | ||||||||||
U.S. Government sponsored entities: | ||||||||||||||||||||||
Mortgage-backed securities, fixed-rate | 1,055,868 | 35,143 | 3.33 | 2,198,188 | 85,138 | 3.87 | ||||||||||||||||
U.S. Treasury securities | - | - | - | 48,178 | 34 | .07 | ||||||||||||||||
Other securities | 180 | 7 | 3.70 | 329 | 16 | 4.86 | ||||||||||||||||
Total securities available for sale(2) |
1,056,048 | 35,150 | 3.33 | 2,246,695 | 85,188 | 3.79 | ||||||||||||||||
Loans and leases held for sale | 46,201 | 3,689 | 7.98 | 1,215 | 131 | 10.78 | ||||||||||||||||
Loans and leases: | ||||||||||||||||||||||
Consumer real estate: | ||||||||||||||||||||||
Fixed-rate | 4,254,039 | 252,233 | 5.93 | 4,627,047 | 281,427 | 6.08 | ||||||||||||||||
Variable-rate | 2,503,473 | 126,158 | 5.04 | 2,386,234 | 122,532 | 5.13 | ||||||||||||||||
Total consumer real estate | 6,757,512 | 378,391 | 5.60 | 7,013,281 | 403,959 | 5.76 | ||||||||||||||||
Commercial: | ||||||||||||||||||||||
Fixed- and adjustable-rate | 2,691,004 | 149,793 | 5.57 | 2,854,327 | 164,368 | 5.76 | ||||||||||||||||
Variable-rate | 794,214 | 30,653 | 3.86 | 710,758 | 30,742 | 4.33 | ||||||||||||||||
Total commercial | 3,485,218 | 180,446 | 5.18 | 3,565,085 | 195,110 | 5.47 | ||||||||||||||||
Leasing and equipment finance | 3,155,946 | 170,991 | 5.42 | 3,074,207 | 184,575 | 6.00 | ||||||||||||||||
Inventory finance | 1,434,643 | 88,934 | 6.20 | 856,271 | 61,583 | 7.19 | ||||||||||||||||
Auto finance | 296,083 | 17,949 | 6.06 | 363 | 13 | 3.31 | ||||||||||||||||
Other | 16,549 | 1,332 | 8.05 | 19,324 | 1,702 | 8.81 | ||||||||||||||||
Total loans and leases | 15,145,951 | 838,043 | 5.53 | 14,528,531 | 846,942 | 5.83 | ||||||||||||||||
Total interest-earning assets | 16,822,622 | 887,286 | 5.27 | 17,597,422 | 940,097 | 5.34 | ||||||||||||||||
Other assets | 1,233,042 | 1,194,550 | ||||||||||||||||||||
Total assets | $ | 18,055,664 | $ | 18,791,972 | ||||||||||||||||||
LIABILITIES AND EQUITY: | ||||||||||||||||||||||
Non-interest bearing deposits: | ||||||||||||||||||||||
Retail | $ | 1,311,561 | $ | 1,414,659 | ||||||||||||||||||
Small business | 738,949 | 698,903 | ||||||||||||||||||||
Commercial and custodial | 317,432 | 291,986 | ||||||||||||||||||||
Total non-interest bearing deposits | 2,367,942 | 2,405,548 | ||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||
Checking | 2,256,237 | 3,105 | .14 | 2,114,098 | 4,451 | .21 | ||||||||||||||||
Savings | 6,037,939 | 19,834 | .33 | 5,671,889 | 28,942 | .51 | ||||||||||||||||
Money market | 770,104 | 2,859 | .37 | 658,693 | 2,951 | .45 | ||||||||||||||||
Subtotal | 9,064,280 | 25,798 | .28 | 8,444,680 | 36,344 | .43 | ||||||||||||||||
Certificates of deposit | 1,727,859 | 15,189 | .88 | 1,103,231 | 8,764 | .79 | ||||||||||||||||
Total interest-bearing deposits | 10,792,139 | 40,987 | .38 | 9,547,911 | 45,108 | .47 | ||||||||||||||||
Total deposits | 13,160,081 | 40,987 | .31 | 11,953,459 | 45,108 | .38 | ||||||||||||||||
Borrowings: | ||||||||||||||||||||||
Short-term borrowings | 312,417 |
937 |
.30 |
49,442 | 171 | .35 | ||||||||||||||||
Long-term borrowings | 2,426,655 |
62,680 |
2.58 | 4,500,564 | 192,984 | 4.29 | ||||||||||||||||
Total borrowings | 2,739,072 | 63,617 | 2.32 | 4,550,006 | 193,155 | 4.24 | ||||||||||||||||
Total interest-bearing liabilities | 13,531,211 | 104,604 | .77 | 14,097,917 | 238,263 | 1.69 | ||||||||||||||||
Total deposits and borrowings | 15,899,153 | 104,604 | .66 | 16,503,465 | 238,263 | 1.44 | ||||||||||||||||
Other liabilities | 412,170 | 551,206 | ||||||||||||||||||||
Total liabilities | 16,311,323 | 17,054,671 | ||||||||||||||||||||
Total TCF Financial Corporation stockholders' equity | 1,729,537 | 1,729,660 | ||||||||||||||||||||
Non-controlling interest in subsidiaries | 14,804 | 7,641 | ||||||||||||||||||||
Total equity | 1,744,341 | 1,737,301 | ||||||||||||||||||||
Total liabilities and equity | $ | 18,055,664 | $ | 18,791,972 | ||||||||||||||||||
Net interest income and margin | $ | 782,682 | 4.65 | $ | 701,834 | 3.99 | ||||||||||||||||
|
||||||||||||||||||||||
(1) Interest and yields are presented on a fully tax equivalent basis. |
||||||||||||||||||||||
(2) Average balances and yields of securities available for sale are based upon the historical amortized cost and excludes equity securities. |
||||||||||||||||||||||
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||
CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME AND FINANCIAL HIGHLIGHTS | ||||||||||||||||||||||||||||
(Dollars in thousands, except per-share data) | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
At or For the Three Months Ended | ||||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | ||||||||||||||||||||||||
2012 | 2012 | 2012 | 2012 | 2011 | ||||||||||||||||||||||||
Interest income: | ||||||||||||||||||||||||||||
Loans and leases | $ | 210,490 | $ | 210,140 | $ | 208,766 | $ | 205,984 | $ | 205,415 | ||||||||||||||||||
Securities available for sale | 4,615 | 5,607 | 5,816 | 19,112 | 22,559 | |||||||||||||||||||||||
Investments and other | 3,922 | 4,105 | 3,633 | 2,433 | 2,333 | |||||||||||||||||||||||
Total interest income | 219,027 | 219,852 | 218,215 | 227,529 | 230,307 | |||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||
Deposits | 10,972 | 10,757 | 10,197 | 9,061 | 9,791 | |||||||||||||||||||||||
Borrowings | 6,992 | 8,536 | 9,794 | 38,295 | 47,082 | |||||||||||||||||||||||
Total interest expense | 17,964 | 19,293 | 19,991 | 47,356 | 56,873 | |||||||||||||||||||||||
Net interest income | 201,063 | 200,559 | 198,224 | 180,173 | 173,434 | |||||||||||||||||||||||
Provision for credit losses | 48,520 | 96,275 | 54,106 | 48,542 | 59,249 | |||||||||||||||||||||||
Net interest income after provision for credit losses |
152,543 | 104,284 | 144,118 | 131,631 | 114,185 | |||||||||||||||||||||||
Non-interest income: | ||||||||||||||||||||||||||||
Fees and service charges | 44,262 | 43,745 | 48,090 | 41,856 | 51,002 | |||||||||||||||||||||||
Card revenue | 12,974 | 12,927 | 13,530 | 13,207 | 13,643 | |||||||||||||||||||||||
ATM revenue | 5,584 | 6,122 | 6,276 | 6,199 | 6,608 | |||||||||||||||||||||||
Subtotal | 62,820 | 62,794 | 67,896 | 61,262 | 71,253 | |||||||||||||||||||||||
Leasing and equipment finance | 26,149 | 20,498 | 23,207 | 22,867 | 18,492 | |||||||||||||||||||||||
Gain on sale of auto loans | 6,869 | 7,486 | 5,496 | 2,250 | 1,133 | |||||||||||||||||||||||
Gain on sale of consumer real estate loans | 854 | 4,559 | - | - | - | |||||||||||||||||||||||
Other | 3,973 | 3,688 | 3,168 | 2,355 | 1,570 | |||||||||||||||||||||||
Fees and other revenue | 100,665 | 99,025 | 99,767 | 88,734 | 92,448 | |||||||||||||||||||||||
(Losses) gains on securities, net | (528 | ) | 13,033 | 13,116 | 76,611 | 5,842 | ||||||||||||||||||||||
Total non-interest income | 100,137 | 112,058 | 112,883 | 165,345 | 98,290 | |||||||||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||||||
Compensation and employee benefits | 101,678 | 98,409 | 97,787 | 95,967 | 82,595 | |||||||||||||||||||||||
Occupancy and equipment | 32,809 | 33,006 | 32,731 | 32,246 | 32,366 | |||||||||||||||||||||||
FDIC insurance | 8,671 | 6,899 | 8,469 | 6,386 | 6,647 | |||||||||||||||||||||||
Advertising and marketing | 4,303 | 4,248 | 5,404 | 2,617 | 2,250 | |||||||||||||||||||||||
Deposit account premiums | 523 | 485 | 1,690 | 5,971 | 6,482 | |||||||||||||||||||||||
Operating lease depreciation | 5,905 | 6,325 | 6,417 | 6,731 | 6,811 | |||||||||||||||||||||||
Other | 53,472 | 36,173 | 36,956 | 37,296 | 39,148 | |||||||||||||||||||||||
Subtotal | 207,361 | 185,545 | 189,454 | 187,214 | 176,299 | |||||||||||||||||||||||
Loss on termination of debt | - | - | - | 550,735 | - | |||||||||||||||||||||||
Foreclosed real estate and repossessed assets, net | 7,582 | 10,670 | 12,059 | 11,047 | 11,323 | |||||||||||||||||||||||
Other credit costs, net | (894 | ) | 593 | 1,476 | (288 | ) | (89 | ) | ||||||||||||||||||||
Total non-interest expense | 214,049 | 196,808 | 202,989 | 748,708 | 187,533 | |||||||||||||||||||||||
Income (loss) before income tax expense | 38,631 | 19,534 | 54,012 | (451,732 | ) | 24,942 | ||||||||||||||||||||||
Income tax expense (benefit) | 10,540 | 6,304 | 20,542 | (170,244 | ) | 7,424 | ||||||||||||||||||||||
Income (loss) after income tax expense | 28,091 | 13,230 | 33,470 | (281,488 | ) | 17,518 | ||||||||||||||||||||||
Income attributable to non-controlling interest | 1,306 | 1,536 | 1,939 | 1,406 | 1,075 | |||||||||||||||||||||||
Preferred stock dividends | 3,234 | 2,372 | - | - | - | |||||||||||||||||||||||
Net income (loss) available to common stockholders | 23,551 | 9,322 | 31,531 | (282,894 | ) | 16,443 | ||||||||||||||||||||||
Other comprehensive (loss) income: | ||||||||||||||||||||||||||||
Reclassification adjustment for securities gains included in net income |
- | (12,912 | ) | - | (76,967 | ) | (6,130 | ) | ||||||||||||||||||||
Unrealized holding (losses) gains arising during the period on securities available for sale |
(8,589 | ) | 16,283 | 19,868 | (7,768 | ) | (4,334 | ) | ||||||||||||||||||||
Foreign currency hedge | 136 | (630 | ) | 268 | (404 | ) | (458 | ) | ||||||||||||||||||||
Foreign currency translation adjustment | (170 | ) | 640 | (324 | ) | 385 | 443 | |||||||||||||||||||||
Recognized postretirement prior service cost and transition obligation |
144 | (7 | ) | (7 | ) | (7 | ) | 305 | ||||||||||||||||||||
Income tax expense (benefit) | 2,855 | (1,010 | ) | (7,375 | ) | 31,208 | 3,890 | |||||||||||||||||||||
Total other comprehensive (loss) income | (5,624 | ) | 2,364 | 12,430 | (53,553 | ) | (6,284 | ) | ||||||||||||||||||||
Comprehensive income (loss) | $ | 17,927 | $ | 11,686 | $ | 43,961 | $ | (336,447 | ) | $ | 10,159 | |||||||||||||||||
Net income (loss) per common share: | ||||||||||||||||||||||||||||
Basic | $ | .15 | $ | .06 | $ | .20 | $ | (1.78 | ) | $ | .10 | |||||||||||||||||
Diluted | .15 | .06 | .20 | (1.78 | ) | .10 | ||||||||||||||||||||||
Dividends declared per common share | $ | .05 | $ | .05 | $ | .05 | $ | .05 | $ | .05 | ||||||||||||||||||
Financial Highlights: | ||||||||||||||||||||||||||||
Pre-tax pre-provision profit(1) | $ | 87,151 | $ | 115,809 | 108,118 | 70,578 | 84,191 | |||||||||||||||||||||
Return on average assets(2) | .63 | % | .30 | % | .76 | % | (5.96 | ) | % | .37 | % | |||||||||||||||||
Return on average common equity(2) | 5.93 | 2.36 | 8.13 | (63.38 | ) | 3.55 | ||||||||||||||||||||||
Net interest margin(2) | 4.79 | 4.85 | 4.86 | 4.14 | 3.92 | |||||||||||||||||||||||
(1) Pre-tax pre-provision profit (''PTPP'') is calculated as total revenues less non-interest expense. First quarter 2012 PTPP excludes the net loss of $473.8 million related to the balance sheet repositioning completed in the first quarter of 2012. |
||||||||||||||||||||||||||||
(2) Annualized. | ||||||||||||||||||||||||||||
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||
CONSOLIDATED QUARTERLY AVERAGE BALANCE SHEETS | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | ||||||||||||||||||||||||
2012 | 2012 | 2012 | 2012 | 2011 | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Cash and due from banks | $ | 777,995 | $ | 628,697 | $ | 555,590 | $ | 863,310 | $ | 1,175,118 | ||||||||||||||||||
Investments | 122,970 | 123,223 | 149,813 | 168,805 | 162,359 | |||||||||||||||||||||||
U.S. Government sponsored entities: | ||||||||||||||||||||||||||||
Mortgage-backed securities | 696,506 | 701,155 | 736,251 | 2,021,574 | 2,374,026 | |||||||||||||||||||||||
Other securities | 2,150 | 2,224 | 2,097 | 1,678 | 1,816 | |||||||||||||||||||||||
Total securities available for sale | 698,656 | 703,379 | 738,348 | 2,023,252 | 2,375,842 | |||||||||||||||||||||||
Loans and leases held for sale | 53,140 | 80,549 | 44,788 | 5,872 | 4,822 | |||||||||||||||||||||||
Loans and leases: | ||||||||||||||||||||||||||||
Consumer real estate: | ||||||||||||||||||||||||||||
Fixed-rate | 4,012,702 | 4,197,903 | 4,365,670 | 4,443,148 | 4,528,165 | |||||||||||||||||||||||
Variable-rate | 2,650,958 | 2,531,351 | 2,427,745 | 2,401,915 | 2,404,886 | |||||||||||||||||||||||
Total consumer real estate | 6,663,660 | 6,729,254 | 6,793,415 | 6,845,063 | 6,933,051 | |||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||
Fixed- and adjustable-rate | 2,614,824 | 2,682,193 | 2,730,085 | 2,737,848 | 2,775,219 | |||||||||||||||||||||||
Variable-rate | 837,944 | 855,918 | 761,964 | 719,872 | 701,441 | |||||||||||||||||||||||
Total commercial | 3,452,768 | 3,538,111 | 3,492,049 | 3,457,720 | 3,476,660 | |||||||||||||||||||||||
Leasing and equipment finance | 3,184,540 | 3,164,592 | 3,145,914 | 3,128,329 | 3,043,329 | |||||||||||||||||||||||
Inventory finance | 1,570,829 | 1,440,298 | 1,571,004 | 1,145,183 | 766,885 | |||||||||||||||||||||||
Auto finance | 504,565 | 367,271 | 223,893 | 85,562 | 1,442 | |||||||||||||||||||||||
Other | 14,704 | 16,280 | 17,647 | 17,582 | 17,944 | |||||||||||||||||||||||
Total loans and leases | 15,391,066 | 15,255,806 | 15,243,922 | 14,679,439 | 14,239,311 | |||||||||||||||||||||||
Allowance for loan and lease losses | (269,578 | ) | (264,626 | ) | (266,187 | ) | (257,895 | ) | (251,158 | ) | ||||||||||||||||||
Net loans and leases | 15,121,488 | 14,991,180 | 14,977,735 | 14,421,544 | 13,988,153 | |||||||||||||||||||||||
Premises and equipment, net | 442,287 | 442,456 | 438,438 | 435,412 | 436,715 | |||||||||||||||||||||||
Goodwill | 225,640 | 225,640 | 225,640 | 225,640 | 179,070 | |||||||||||||||||||||||
Other assets | 506,212 | 521,397 | 524,466 | 753,873 | 598,367 | |||||||||||||||||||||||
Total assets | $ | 17,948,388 | $ | 17,716,521 | $ | 17,654,818 | $ | 18,897,708 | $ | 18,920,446 | ||||||||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||||||
Non-interest-bearing deposits: | ||||||||||||||||||||||||||||
Retail | $ | 1,294,027 | $ | 1,275,722 | $ | 1,316,767 | $ | 1,359,781 | $ | 1,330,462 | ||||||||||||||||||
Small business | 775,334 | 746,511 | 725,052 | 708,416 | 738,867 | |||||||||||||||||||||||
Commercial and custodial | 329,919 | 324,739 | 310,321 | 305,064 | 303,216 | |||||||||||||||||||||||
Total non-interest bearing deposits | 2,399,280 | 2,346,972 | 2,352,140 | 2,373,261 | 2,372,545 | |||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||||
Checking | 2,248,481 | 2,255,561 | 2,306,810 | 2,214,192 | 2,096,340 | |||||||||||||||||||||||
Savings | 6,083,168 | 6,153,079 | 6,031,015 | 5,882,730 | 5,859,147 | |||||||||||||||||||||||
Money market | 819,596 | 848,899 | 748,016 | 662,493 | 662,024 | |||||||||||||||||||||||
Subtotal | 9,151,245 | 9,257,539 | 9,085,841 | 8,759,415 | 8,617,511 | |||||||||||||||||||||||
Certificates of deposit | 2,206,173 | 1,953,208 | 1,608,653 | 1,135,673 | 1,112,735 | |||||||||||||||||||||||
Total interest-bearing deposits | 11,357,418 | 11,210,747 | 10,694,494 | 9,895,088 | 9,730,246 | |||||||||||||||||||||||
Total deposits | 13,756,698 | 13,557,719 | 13,046,634 | 12,268,349 | 12,102,791 | |||||||||||||||||||||||
Borrowings: | ||||||||||||||||||||||||||||
Short-term borrowings | 47,715 | 65,531 | 705,888 | 436,171 | 37,081 | |||||||||||||||||||||||
Long-term borrowings | 1,928,507 | 1,985,094 | 1,986,182 | 3,817,165 | 4,387,036 | |||||||||||||||||||||||
Total borrowings | 1,976,222 | 2,050,625 | 2,692,070 | 4,253,336 | 4,424,117 | |||||||||||||||||||||||
Accrued expenses and other liabilities | 434,471 | 343,336 | 335,113 | 577,142 | 538,148 | |||||||||||||||||||||||
Total liabilities | 16,167,391 | 15,951,680 | 16,073,817 | 17,098,827 | 17,065,056 | |||||||||||||||||||||||
Equity: | ||||||||||||||||||||||||||||
Preferred stock | 180,359 | 166,721 | 10,993 | - | - | |||||||||||||||||||||||
Common stock | 1,634 | 1,631 | 1,625 | 1,617 | 1,602 | |||||||||||||||||||||||
Additional paid-in capital | 749,445 | 742,598 | 738,089 | 727,596 | 711,914 | |||||||||||||||||||||||
Retained earnings, subject to certain restrictions | 866,895 | 862,570 | 846,349 | 1,052,632 | 1,121,866 | |||||||||||||||||||||||
Accumulated other comprehensive income | 13,131 | 19,321 | 11,601 | 46,029 | 48,618 | |||||||||||||||||||||||
Treasury stock at cost and other | (43,462 | ) | (42,890 | ) | (45,499 | ) | (42,499 | ) | (33,032 | ) | ||||||||||||||||||
Total TCF Financial Corporation stockholders equity | 1,768,002 | 1,749,951 | 1,563,158 | 1,785,375 | 1,850,968 | |||||||||||||||||||||||
Non-controlling interest in subsidiaries | 12,995 | 14,890 | 17,843 | 13,506 | 4,422 | |||||||||||||||||||||||
Total equity | 1,780,997 | 1,764,841 | 1,581,001 | 1,798,881 | 1,855,390 | |||||||||||||||||||||||
Total liabilities and equity | $ | 17,948,388 | $ | 17,716,521 | $ | 17,654,818 | $ | 18,897,708 | $ | 18,920,446 | ||||||||||||||||||
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||
CONSOLIDATED QUARTERLY YIELDS AND RATES(1) (2) | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | |||||||||||||||||||
2012 | 2012 | 2012 | 2012 | 2011 | |||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Investments and other | 1.77 | % | 2.09 | % | 2.48 | % | 1.29 | % | .84 | % | |||||||||||||
U.S. Government sponsored entities: | |||||||||||||||||||||||
Mortgage-backed securities, fixed-rate | 2.64 | 3.15 | 3.17 | 3.66 | 3.79 | ||||||||||||||||||
Other securities | 2.52 | 3.32 | 4.14 | 5.24 | 3.36 | ||||||||||||||||||
Total securities available for sale(3) | 2.64 | 3.15 | 3.17 | 3.66 | 3.79 | ||||||||||||||||||
Loans and leases held for sale | 8.00 | 7.89 | 8.80 | 3.08 | 10.78 | ||||||||||||||||||
Loans and leases: | |||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||
Fixed-rate | 5.95 | 5.94 | 5.84 | 5.99 | 6.04 | ||||||||||||||||||
Variable-rate | 5.07 | 5.04 | 5.00 | 5.03 | 5.09 | ||||||||||||||||||
Total consumer real estate | 5.60 | 5.60 | 5.54 | 5.65 | 5.71 | ||||||||||||||||||
Commercial: | |||||||||||||||||||||||
Fixed- and adjustable-rate | 5.60 | 5.57 | 5.49 | 5.61 | 5.68 | ||||||||||||||||||
Variable-rate | 3.55 | 3.77 | 3.99 | 4.20 | 4.28 | ||||||||||||||||||
Total commercial | 5.10 | 5.14 | 5.16 | 5.32 | 5.40 | ||||||||||||||||||
Leasing and equipment finance | 5.24 | 5.33 | 5.48 | 5.63 | 5.88 | ||||||||||||||||||
Inventory finance | 6.11 | 6.19 | 6.07 | 6.58 | 7.12 | ||||||||||||||||||
Auto finance | 5.53 | 5.97 | 6.89 | 7.44 | 3.30 | ||||||||||||||||||
Other | 8.31 | 7.83 | 7.66 | 8.42 | 8.91 | ||||||||||||||||||
Total loans and leases | 5.47 | 5.50 | 5.52 | 5.65 | 5.75 | ||||||||||||||||||
Total interest-earning assets | 5.21 | 5.32 | 5.34 | 5.24 | 5.20 | ||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||
Checking | .11 | .12 | .15 | .16 | .15 | ||||||||||||||||||
Savings | .29 | .31 | .34 | .37 | .42 | ||||||||||||||||||
Money market | .35 | .38 | .39 | .37 | .37 | ||||||||||||||||||
Subtotal | .25 | .27 | .30 | .32 | .35 | ||||||||||||||||||
Certificates of deposit | .92 | .92 | .86 | .75 | .75 | ||||||||||||||||||
Total interest-bearing deposits | .38 | .38 | .38 | .37 | .40 | ||||||||||||||||||
Total deposits | .32 | .32 | .31 | .30 | .32 | ||||||||||||||||||
Borrowings: | |||||||||||||||||||||||
Short-term borrowings |
.41 |
.24 |
.30 | .30 | .29 | ||||||||||||||||||
Long-term borrowings |
1.44 |
1.71 |
1.87 | 4.00 | 4.26 | ||||||||||||||||||
Total borrowings | 1.41 | 1.66 | 1.46 | 3.62 | 4.23 | ||||||||||||||||||
Total interest-bearing liabilities | .54 | .58 | .60 | 1.35 | 1.59 | ||||||||||||||||||
Net interest margin | 4.79 | 4.85 | 4.86 | 4.14 | 3.92 | ||||||||||||||||||
(1) Annualized. | |||||||||||||||||||||||
(2) Yields are presented on a fully tax equivalent basis. | |||||||||||||||||||||||
(3) Average yields of securities available for sale are based upon the historical amortized cost and excludes equity securities. | |||||||||||||||||||||||
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES(1) | ||||||||
(Dollars in thousands) | ||||||||
(Unaudited) | ||||||||
At Dec. 31, | At Dec. 31, | |||||||
2012 | 2011 | |||||||
Computation of tangible realized common equity to tangible assets: | ||||||||
Total equity | $ | 1,876,643 | $ | 1,878,627 | ||||
Less: Non-controlling interest in subsidiaries | 13,270 | 10,494 | ||||||
Total TCF Financial Corp. stockholders’ equity | 1,863,373 | 1,868,133 | ||||||
Less: | ||||||||
Preferred stock | 263,240 | - | ||||||
Goodwill | 225,640 | 225,640 | ||||||
Other intangibles | 8,674 | 7,134 | ||||||
Accumulated other comprehensive income | 12,443 | 56,826 | ||||||
Tangible realized common equity | $ | 1,353,376 | $ | 1,578,533 | ||||
Total assets | $ | 18,225,917 | $ | 18,979,388 | ||||
Less: | ||||||||
Goodwill | 225,640 | 225,640 | ||||||
Other intangibles | 8,674 | 7,134 | ||||||
Tangible assets | $ | 17,991,603 | $ | 18,746,614 | ||||
Tangible realized common equity to tangible assets | 7.52 | % | 8.42 | % | ||||
At Dec. 31, | At Dec. 31, | |||||||
2012 | 2011 | |||||||
Computation of tier 1 risk-based capital ratio: | ||||||||
Total tier 1 capital | $ | 1,633,336 | $ | 1,706,926 | ||||
Total risk-weighted assets | 14,733,203 | 13,475,330 | ||||||
Total tier 1 risk-based capital ratio | 11.09 | % | 12.67 | % | ||||
Computation of tier 1 common capital ratio: | ||||||||
Total tier 1 capital | $ | 1,633,336 | $ | 1,706,926 | ||||
Less: | ||||||||
Preferred stock | 263,240 | - | ||||||
Qualifying non-controlling interest in subsidiaries | 13,270 | 10,494 | ||||||
Qualifying trust preferred securities | - | 115,000 | ||||||
Total tier 1 common capital | $ | 1,356,826 | $ | 1,581,432 | ||||
Total tier 1 common capital ratio | 9.21 | % | 11.74 | % | ||||
(1) When evaluating capital adequacy and utilization, management considers financial measures such as Tangible Realized Common Equity to Tangible Assets and the Tier 1 Common Capital Ratio. These measures are non-GAAP financial measures and are viewed by management as useful indicators of capital levels available to withstand unexpected market or economic conditions, and also provide investors, regulators, and other users with information to be viewed in relation to other banking institutions.