TCF Reports Quarterly Net Income of $90.4 Million, or $0.54 Per Share

Adjusted diluted earnings per common share of $0.56,(1) excluding 2 cents per share after-tax impact of merger-related expenses

WAYZATA, Minn.--()--TCF Financial Corporation (NYSE: TCF):

Second Quarter Observations

  • Diluted earnings per common share of 54 cents, up 58.8% from the second quarter of 2018; adjusted diluted earnings per common share of 56 cents(1), up 14.3% from the second quarter of 2018
  • Efficiency ratio of 65.11%, down 944 basis points from the second quarter of 2018; adjusted efficiency ratio of 63.95%(1), down 183 basis points from the second quarter of 2018
  • Non-interest expense down 12.9% from the second quarter of 2018; adjusted non-interest expense(1) down 3.1% from the second quarter of 2018
  • Revenue of $363.8 million, consistent with the second quarter of 2018
  • Net interest income consistent with the second quarter of 2018
  • Average interest-earning asset growth of 4.9% from the second quarter of 2018
  • Period-end loans and leases up 3.1% from June 30, 2018; period-end loans and leases excluding auto finance up 10.7%(2) from June 30, 2018
  • Net charge-off rate of 0.29%; net charge-off rate excluding auto finance net charge-offs of 0.19%(1)
  • Return on average common equity ("ROACE") of 14.27%; return on average tangible common equity ("ROATCE") of 15.46%(1); adjusted ROATCE of 16.02%(1)
  • Repurchased 1,324,920 shares of common stock at a cost of $26.5 million during the second quarter of 2019

Summary of Financial Results

 

 

 

 

 

 

 

 

 

 

 

 

 

At or For the Quarter Ended

 

Change From

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

Jun. 30,

(Dollars in thousands, except per share data)

2019

 

2019

 

2018

 

2018

 

2018

 

2019

 

2018

Net income attributable to TCF

$

90,427

 

 

$

70,494

 

 

$

85,652

 

 

$

86,196

 

 

$

58,749

 

 

28.3

 

%

53.9

 

%

Net interest income

 

250,324

 

 

 

250,907

 

 

 

248,888

 

 

 

249,121

 

 

 

250,799

 

 

(0.2

)

 

(0.2

)

 

Basic earnings per common share

 

0.54

 

 

 

0.42

 

 

 

0.51

 

 

 

0.51

 

 

 

0.34

 

 

28.6

 

 

58.8

 

 

Diluted earnings per common share

 

0.54

 

 

 

0.42

 

 

 

0.51

 

 

 

0.51

 

 

 

0.34

 

 

28.6

 

 

58.8

 

 

Adjusted diluted earnings per common share(1)

 

0.56

 

 

 

0.46

 

 

 

0.51

 

 

 

0.51

 

 

 

0.49

 

 

21.7

 

 

14.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets(3)

 

1.54

%

 

 

1.22

%

 

 

1.52

%

 

 

1.55

%

 

 

1.08

%

 

32

 

bps

46

 

bps

ROACE(3)

 

14.27

 

 

 

11.40

 

 

 

14.30

 

 

 

14.44

 

 

 

9.72

 

 

287

 

 

455

 

 

Adjusted ROACE(1)(3)

 

14.79

 

 

 

12.61

 

 

 

14.30

 

 

 

14.44

 

 

 

14.11

 

 

218

 

 

68

 

 

ROATCE(1)(3)

 

15.46

 

 

 

12.42

 

 

 

15.59

 

 

 

15.76

 

 

 

10.65

 

 

304

 

 

481

 

 

Adjusted ROATCE(1)(3)

 

16.02

 

 

 

13.72

 

 

 

15.59

 

 

 

15.76

 

 

 

15.39

 

 

230

 

 

63

 

 

Net interest margin(3)

 

4.43

 

 

 

4.56

 

 

 

4.60

 

 

 

4.66

 

 

 

4.67

 

 

(13

)

 

(24

)

 

Net charge-offs as a percentage of average loans and leases(3)

 

0.29

 

 

 

0.39

 

 

 

0.46

 

 

 

0.15

 

 

 

0.27

 

 

(10

)

 

2

 

 

Non-performing assets as a percentage of total loans and leases and other real estate owned

 

0.62

 

 

 

0.63

 

 

 

0.65

 

 

 

0.59

 

 

 

0.54

 

 

(1

)

 

8

 

 

Efficiency ratio

 

65.11

 

 

 

70.70

 

 

 

66.30

 

 

 

67.41

 

 

 

74.55

 

 

(559

)

 

(944

)

 

Adjusted efficiency ratio(1)

 

63.95

 

 

 

68.06

 

 

 

66.30

 

 

 

67.41

 

 

 

65.78

 

 

(411

)

 

(183

)

 

(1) See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables.
(2) Calculated by subtracting auto finance loans of $1.5 billion and $2.6 billion at June 30, 2019 and 2018, respectively, from total loans and leases of $19.2 billion and $18.6 billion at June 30, 2019 and 2018, respectively.
(3) Annualized

TCF Financial Corporation ("TCF" or the "Company") (NYSE: TCF) today reported net income of $90.4 million for the second quarter of 2019, compared with $58.7 million for the second quarter of 2018 and $70.5 million for the first quarter of 2019. Diluted earnings per common share was 54 cents for the second quarter of 2019 (inclusive of a 2 cents per common share after-tax impact of merger-related expenses), compared with 34 cents for the second quarter of 2018 and 42 cents for the first quarter of 2019 (inclusive of a 4 cents per common share after-tax impact of merger-related expenses). Adjusted diluted earnings per common share was 56 cents for the second quarter of 2019, an increase of 14.3% from the second quarter of 2018 and an increase of 21.7% from the first quarter of 2019 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).

"We generated strong financial results in the second quarter as we look forward to closing our merger with Chemical Financial Corporation on August 1, 2019," said Craig R. Dahl, chairman and chief executive officer. "Our second quarter performance was highlighted by lower expenses, growth in both average loans and average deposits, stable credit quality and the continuation of our risk reduction strategy. As a result, we continued to demonstrate progress toward our two primary strategic objectives, improving return on capital and lowering the efficiency ratio. In addition, our integration planning activities remain on track to support the combination of Chemical and TCF, and we are excited about bringing together the best of both companies that we believe positions us to deliver value for our shareholders and communities upon completion of the merger."

Net Interest Income and Net Interest Margin
Net interest income was $250.3 million for the second quarter of 2019, consistent with both the second quarter of 2018 and first quarter of 2019. Net interest margin was 4.43% for the second quarter of 2019, down 24 basis points from the second quarter of 2018 and down 13 basis points from the first quarter of 2019. The decrease in net interest margin from the second quarter of 2018 was primarily due to higher average rates on deposits, partially offset by higher average yields on the variable- and adjustable-rate loan portfolios. The decrease in net interest margin from the first quarter of 2019 was primarily due to lower average loan and lease yields and higher average rates on deposits. The decreases were also impacted by the partial reinvestment of the auto finance portfolio run-off into the available for sale mortgage-backed debt securities portfolio.

Non-interest Income
Non-interest income was $113.5 million for the second quarter of 2019, a decrease of $0.7 million, or 0.6%, from the second quarter of 2018 and an increase of $6.4 million, or 6.0%, from the first quarter of 2019. The decrease from the second quarter of 2018 was primarily due to a decrease in servicing fee income driven by continued run-off in the auto finance serviced for others portfolio and a decrease in leasing and equipment finance non-interest income, partially offset by an increase in gains on sales of loans. The increase from the first quarter of 2019 was primarily due to increases in gains on sales of loans, card revenue and fees and service charges.

Non-interest Expense
Non-interest expense was $236.8 million for the second quarter of 2019, a decrease of $35.2 million, or 12.9%, from the second quarter of 2018 and a decrease of $16.2 million, or 6.4%, from the first quarter of 2019. The decrease in non-interest expense from the second quarter of 2018 was primarily due to the $32.0 million settlement with the Consumer Financial Protection Bureau (the "CFPB") and Office of the Comptroller of the Currency (the "OCC") in the second quarter of 2018 and a decrease in compensation and employee benefits expense, partially offset by merger-related expenses of $4.2 million. The decrease in non-interest expense from the first quarter of 2019 was primarily due to decreases in compensation and employee benefits expense and merger-related expenses. The decrease in compensation and employee benefits expense from the second quarter of 2018 was primarily due to lower commissions. The decrease in compensation and employee benefits expense from the first quarter of 2019 was primarily due to seasonality of payroll taxes. Adjusted non-interest expense was $232.6 million for the second quarter of 2019, a decrease of $7.4 million, or 3.1%, from the second quarter of 2018 and $11.0 million, or 4.5%, from the first quarter of 2019 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).

Income Tax Expense
The Company's effective income tax rate was 17.0% for the second quarter of 2019, compared with 20.9% for the second quarter of 2018 and 22.5% for the first quarter of 2019. The effective tax rate for the second quarter of 2019 was impacted by favorable state tax examination developments.

Credit Quality
Provision for credit losses The provision for credit losses was $13.6 million for the second quarter of 2019, a decrease of $0.7 million, or 4.7%, from the second quarter of 2018 and an increase of $3.4 million, or 34.1%, from the first quarter of 2019. The decrease from the second quarter of 2018 was primarily due to a decrease in the provision for credit losses attributable to the auto finance portfolio, partially offset by increases in the provision for credit losses attributable to the commercial and leasing and equipment finance portfolios. The increase from the first quarter of 2019 was primarily due to an increase in the provision for credit losses attributable to the commercial portfolio, partially offset by decreases in the provision for credit losses attributable to the inventory finance and auto finance portfolios.

Net charge-off rate The annualized net charge-off rate was 0.29% for the second quarter of 2019, up 2 basis points from the second quarter of 2018 and down 10 basis points from the first quarter of 2019. The increase from the second quarter of 2018 was primarily due to increased net charge-offs in the commercial portfolio, partially offset by decreased net charge-offs in the auto finance portfolio. The decrease from the first quarter of 2019 was primarily due to decreased net charge-offs in the auto finance portfolio. The annualized net charge-off rate excluding auto finance net charge-offs was 0.19% for the second quarter of 2019, up 9 basis points from the second quarter of 2018 and down 1 basis point from the first quarter of 2019 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).

Over 60-day delinquency rate The over 60-day delinquency rate, excluding non-accrual loans and leases, was 0.14% at June 30, 2019, up 3 basis points from the June 30, 2018 rate and up 2 basis points from the March 31, 2019 rate. The increases from both periods were primarily due to higher delinquencies in the leasing and equipment finance portfolio.

Non-performing assets Non-performing assets, consisting of non-accrual loans and leases and other real estate owned, were $120.0 million at June 30, 2019, an increase of $18.8 million, or 18.6%, from June 30, 2018 and a decrease of $1.7 million, or 1.4%, from March 31, 2019. The increase from June 30, 2018 was primarily due to an increase in consumer real estate non-accrual loans. The decrease from March 31, 2019 was primarily due to a decrease in other real estate owned, partially offset by increases in leasing and equipment finance non-accrual loans and leases and consumer real estate non-accrual loans.

Balance Sheet
Average debt securities held to maturity and debt securities available for sale The total average debt securities portfolio was $3.1 billion for the second quarter of 2019, an increase of $834.3 million, or 37.1%, from the second quarter of 2018 and an increase of $295.1 million, or 10.6%, from the first quarter of 2019. The increases from both periods were primarily due to purchases of available for sale mortgage-backed debt securities, partially offset by sales of available for sale obligations of states and political subdivisions debt securities.

Average loans and leases Average loans and leases were $19.2 billion for the second quarter of 2019, an increase of $145.6 million, or 0.8%, from the second quarter of 2018 and an increase of $52.9 million, or 0.3%, from the first quarter of 2019. The increase from the second quarter of 2018 was primarily due to increases in the consumer real estate, inventory finance and commercial loan portfolios, partially offset by run-off of the auto finance portfolio. The increase from the first quarter of 2019 was primarily due to increases in the commercial and inventory finance loan portfolios, partially offset by run-off of the auto finance portfolio. Average loans and leases excluding auto finance loans were $17.7 billion for the second quarter of 2019, an increase of $1.3 billion, or 7.7%, from the second quarter of 2018 and an increase of $318.3 million, or 1.8%, from the first quarter of 2019 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).

Average deposits Average deposits were $18.9 billion for the second quarter of 2019, an increase of $507.2 million, or 2.8%, from the second quarter of 2018 and an increase of $127.3 million, or 0.7%, from the first quarter of 2019. The increases from both periods were primarily due to increases in savings account balances, partially offset by decreases in certificates of deposit and money market account balances.

Capital TCF continues to maintain strong capital ratios, with a common equity Tier 1 capital ratio of 10.99%. TCF repurchased 1,324,920 shares of its common stock during the second quarter of 2019 and had the authority to repurchase an additional $51.6 million in aggregate value of shares at June 30, 2019, pursuant to its share repurchase program.

On June 27, 2019 TCF priced $150.0 million of 4.125% fixed-to-floating rate subordinated bank notes due 2029, which closed on July 2, 2019.

If the proposed merger with Chemical Financial Corporation closes as anticipated on August 1, 2019, the combined company Board of Directors intends to declare the third quarter 2019 common and preferred stock dividends on that date for the combined company. These dividends are expected to be payable in the third quarter of 2019.

TCF is a Wayzata, Minnesota-based national bank holding company. As of June 30, 2019, TCF had $24.6 billion in total assets and 312 bank branches in Illinois, Minnesota, Michigan, Colorado, Wisconsin, 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 and commercial inventory finance business in all 50 states and Canada. 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, targets, 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 herein. These factors include the factors discussed in Part I, Item 1A. of the Company's Annual Report on Form 10-K for the year ended December 31, 2018 under the heading "Risk Factors" 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.

Use of Non-GAAP Financial Measures

Management uses the adjusted diluted earnings per common share, adjusted ROACE, ROATCE, adjusted ROATCE, adjusted efficiency ratio, net charge-off rate excluding auto finance net charge-offs, tangible book value per common share and tangible common equity to tangible assets internally to measure performance and believes that these financial measures not recognized under generally accepted accounting principles in the United States ("GAAP") (i.e. non-GAAP) provide meaningful information to investors that will permit them to assess the Company's capital and ability to withstand unexpected market or economic conditions and to assess the performance of the Company in relation to other banking institutions on the same basis as that applied by management, analysts and banking regulators. TCF adjusts certain results to exclude merger-related expenses and the settlement with the CFPB and the OCC, as management believes it is useful to investors in understanding TCF's business and operating results. In addition, TCF adjusts certain results to exclude auto finance because TCF no longer originates auto finance loans, and therefore management believes it is useful to investors in understanding TCF's business and operating results.

These non-GAAP financial measures are not defined by GAAP and other entities may calculate them differently than TCF does. Non-GAAP financial measures have inherent limitations and are not required to be uniformly applied. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of results as reported under GAAP. In particular, a measure of earnings that excludes selected items does not represent the amount that effectively accrues directly to stockholders.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Financial Condition (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Change From

(Dollars in thousands)

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Mar. 31, 2019

Jun. 30, 2018

2019

 

2019

 

2018

 

2018

 

2018

 

$

 

%

$

 

%

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

555,271

 

 

$

463,822

 

 

$

587,057

 

 

$

569,968

 

 

$

581,876

 

 

$

91,449

 

 

19.7

%

$

(26,605

)

 

(4.6

)%

Investments

 

105,659

 

 

 

103,644

 

 

 

91,654

 

 

 

80,672

 

 

 

95,661

 

 

 

2,015

 

 

1.9

 

 

9,998

 

 

10.5

 

Debt securities held to maturity

 

144,919

 

 

 

148,024

 

 

 

148,852

 

 

 

152,881

 

 

 

155,962

 

 

 

(3,105

)

 

(2.1

)

 

(11,043

)

 

(7.1

)

Debt securities available for sale

 

3,109,803

 

 

 

2,945,342

 

 

 

2,470,065

 

 

 

2,379,546

 

 

 

2,249,784

 

 

 

164,461

 

 

5.6

 

 

860,019

 

 

38.2

 

Loans and leases held for sale

 

74,410

 

 

 

64,468

 

 

 

90,664

 

 

 

114,198

 

 

 

291,871

 

 

 

9,942

 

 

15.4

 

 

(217,461

)

 

(74.5

)

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First mortgage lien

 

2,472,066

 

 

 

2,480,750

 

 

 

2,444,380

 

 

 

1,960,756

 

 

 

1,800,885

 

 

 

(8,684

)

 

(0.4

)

 

671,181

 

 

37.3

 

Junior lien

 

2,821,099

 

 

 

2,872,807

 

 

 

2,965,960

 

 

 

2,940,701

 

 

 

2,830,029

 

 

 

(51,708

)

 

(1.8

)

 

(8,930

)

 

(0.3

)

Total consumer real estate

 

5,293,165

 

 

 

5,353,557

 

 

 

5,410,340

 

 

 

4,901,457

 

 

 

4,630,914

 

 

 

(60,392

)

 

(1.1

)

 

662,251

 

 

14.3

 

Commercial

 

4,185,811

 

 

 

3,884,106

 

 

 

3,851,303

 

 

 

3,741,164

 

 

 

3,706,401

 

 

 

301,705

 

 

7.8

 

 

479,410

 

 

12.9

 

Leasing and equipment finance

 

4,826,785

 

 

 

4,674,309

 

 

 

4,699,740

 

 

 

4,601,887

 

 

 

4,648,049

 

 

 

152,476

 

 

3.3

 

 

178,736

 

 

3.8

 

Inventory finance

 

3,404,214

 

 

 

3,749,146

 

 

 

3,107,356

 

 

 

2,880,404

 

 

 

3,005,165

 

 

 

(344,932

)

 

(9.2

)

 

399,049

 

 

13.3

 

Auto finance

 

1,456,138

 

 

 

1,704,614

 

 

 

1,982,277

 

 

 

2,275,134

 

 

 

2,603,260

 

 

 

(248,476

)

 

(14.6

)

 

(1,147,122

)

 

(44.1

)

Other

 

18,341

 

 

 

17,943

 

 

 

21,295

 

 

 

21,107

 

 

 

20,957

 

 

 

398

 

 

2.2

 

 

(2,616

)

 

(12.5

)

Total loans and leases

 

19,184,454

 

 

 

19,383,675

 

 

 

19,072,311

 

 

 

18,421,153

 

 

 

18,614,746

 

 

 

(199,221

)

 

(1.0

)

 

569,708

 

 

3.1

 

Allowance for loan and lease losses

 

(146,503

)

 

 

(147,972

)

 

 

(157,446

)

 

 

(160,621

)

 

 

(165,619

)

 

 

1,469

 

 

1.0

 

 

19,116

 

 

11.5

 

Net loans and leases

 

19,037,951

 

 

 

19,235,703

 

 

 

18,914,865

 

 

 

18,260,532

 

 

 

18,449,127

 

 

 

(197,752

)

 

(1.0

)

 

588,824

 

 

3.2

 

Premises and equipment, net

 

432,751

 

 

 

429,711

 

 

 

427,534

 

 

 

429,648

 

 

 

430,956

 

 

 

3,040

 

 

0.7

 

 

1,795

 

 

0.4

 

Goodwill, net

 

154,757

 

 

 

154,757

 

 

 

154,757

 

 

 

154,757

 

 

 

154,757

 

 

 

 

Other assets

 

1,011,309

 

 

 

873,244

 

 

 

814,164

 

 

 

762,583

 

 

 

774,468

 

 

 

138,065

 

 

15.8

 

 

236,841

 

 

30.6

 

Total assets

$

24,626,830

 

 

$

24,418,715

 

 

$

23,699,612

 

 

$

22,904,785

 

 

$

23,184,462

 

 

$

208,115

 

 

0.9

 

$

1,442,368

 

 

6.2

 

LIABILITIES AND EQUITY:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

$

6,544,470

 

 

$

6,621,261

 

 

$

6,381,327

 

 

$

6,382,667

 

 

$

6,408,174

 

 

$

(76,791

)

 

(1.2

)%

$

136,296

 

 

2.1

%

Savings

 

6,519,587

 

 

 

6,442,544

 

 

 

6,122,257

 

 

 

5,737,144

 

 

 

5,570,979

 

 

 

77,043

 

 

1.2

 

 

948,608

 

 

17.0

 

Money market

 

1,443,003

 

 

 

1,468,308

 

 

 

1,609,422

 

 

 

1,504,952

 

 

 

1,562,008

 

 

 

(25,305

)

 

(1.7

)

 

(119,005

)

 

(7.6

)

Certificates of deposit

 

4,605,327

 

 

 

4,491,998

 

 

 

4,790,680

 

 

 

4,871,748

 

 

 

4,822,112

 

 

 

113,329

 

 

2.5

 

 

(216,785

)

 

(4.5

)

Total deposits

 

19,112,387

 

 

 

19,024,111

 

 

 

18,903,686

 

 

 

18,496,511

 

 

 

18,363,273

 

 

 

88,276

 

 

0.5

 

 

749,114

 

 

4.1

 

Borrowings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

350,764

 

 

 

355,992

 

 

 

 

2,324

 

 

 

761

 

 

 

(5,228

)

 

(1.5

)

 

350,003

 

 

N.M.

Long-term borrowings

 

1,617,531

 

 

 

1,411,426

 

 

 

1,449,472

 

 

 

1,171,541

 

 

 

1,554,569

 

 

 

206,105

 

 

14.6

 

 

62,962

 

 

4.1

 

Total borrowings

 

1,968,295

 

 

 

1,767,418

 

 

 

1,449,472

 

 

 

1,173,865

 

 

 

1,555,330

 

 

 

200,877

 

 

11.4

 

 

412,965

 

 

26.6

 

Accrued expenses and other liabilities

 

835,630

 

 

 

981,341

 

 

 

790,194

 

 

 

706,397

 

 

 

761,281

 

 

 

(145,711

)

 

(14.8

)

 

74,349

 

 

9.8

 

Total liabilities

 

21,916,312

 

 

 

21,772,870

 

 

 

21,143,352

 

 

 

20,376,773

 

 

 

20,679,884

 

 

 

143,442

 

 

0.7

 

 

1,236,428

 

 

6.0

 

Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

169,302

 

 

 

169,302

 

 

 

169,302

 

 

 

169,302

 

 

 

169,302

 

 

 

 

Common stock

 

1,731

 

 

 

1,733

 

 

 

1,736

 

 

 

1,736

 

 

 

1,735

 

 

 

(2

)

 

(0.1

)

 

(4

)

 

(0.2

)

Additional paid-in capital

 

868,001

 

 

 

875,797

 

 

 

885,089

 

 

 

882,321

 

 

 

877,364

 

 

 

(7,796

)

 

(0.9

)

 

(9,363

)

 

(1.1

)

Retained earnings, subject to certain restrictions

 

1,874,308

 

 

 

1,810,701

 

 

 

1,766,994

 

 

 

1,708,410

 

 

 

1,649,449

 

 

 

63,607

 

 

3.5

 

 

224,859

 

 

13.6

 

Accumulated other comprehensive income (loss)

 

37,334

 

 

 

5,481

 

 

 

(33,138

)

 

 

(65,259

)

 

 

(52,811

)

 

 

31,853

 

 

N.M.

 

90,145

 

 

N.M.

Treasury stock at cost and other

 

(265,016

)

 

 

(246,621

)

 

 

(252,182

)

 

 

(189,652

)

 

 

(164,107

)

 

 

(18,395

)

 

(7.5

)

 

(100,909

)

 

(61.5

)

Total TCF Financial Corporation stockholders' equity

 

2,685,660

 

 

 

2,616,393

 

 

 

2,537,801

 

 

 

2,506,858

 

 

 

2,480,932

 

 

 

69,267

 

 

2.6

 

 

204,728

 

 

8.3

 

Non-controlling interest in subsidiaries

 

24,858

 

 

 

29,452

 

 

 

18,459

 

 

 

21,154

 

 

 

23,646

 

 

 

(4,594

)

 

(15.6

)

 

1,212

 

 

5.1

 

Total equity

 

2,710,518

 

 

 

2,645,845

 

 

 

2,556,260

 

 

 

2,528,012

 

 

 

2,504,578

 

 

 

64,673

 

 

2.4

 

 

205,940

 

 

8.2

 

Total liabilities and equity

$

24,626,830

 

 

$

24,418,715

 

 

$

23,699,612

 

 

$

22,904,785

 

 

$

23,184,462

 

 

$

208,115

 

 

0.9

 

$

1,442,368

 

 

6.2

 

 

N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

Change From

(Dollars in thousands)

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Mar. 31, 2019

 

Jun. 30, 2018

2019

 

2019

 

2018

 

2018

 

2018

 

$

 

%

 

$

 

 

%

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and leases

$

279,447

 

$

279,594

 

$

270,804

 

$

264,678

 

$

269,280

 

$

(147

)

 

(0.1

)%

 

$

10,167

 

 

3.8

%

Debt securities available for sale

 

22,325

 

 

18,815

 

 

17,097

 

 

14,838

 

 

12,516

 

 

3,510

 

 

18.7

 

 

 

9,809

 

 

78.4

 

Debt securities held to maturity

 

924

 

 

535

 

 

965

 

 

988

 

 

998

 

 

389

 

 

72.7

 

 

 

(74

)

 

(7.4

)

Loans held for sale and other

 

4,247

 

 

4,301

 

 

4,631

 

 

6,678

 

 

3,529

 

 

(54

)

 

(1.3

)

 

 

718

 

 

20.3

 

Total interest income

 

306,943

 

 

303,245

 

 

293,497

 

 

287,182

 

 

286,323

 

 

3,698

 

 

1.2

 

 

 

20,620

 

 

7.2

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

40,542

 

 

37,480

 

 

33,315

 

 

27,335

 

 

23,953

 

 

3,062

 

 

8.2

 

 

 

16,589

 

 

69.3

 

Borrowings

 

16,077

 

 

14,858

 

 

11,294

 

 

10,726

 

 

11,571

 

 

1,219

 

 

8.2

 

 

 

4,506

 

 

38.9

 

Total interest expense

 

56,619

 

 

52,338

 

 

44,609

 

 

38,061

 

 

35,524

 

 

4,281

 

 

8.2

 

 

 

21,095

 

 

59.4

 

Net interest income

 

250,324

 

 

250,907

 

 

248,888

 

 

249,121

 

 

250,799

 

 

(583

)

 

(0.2

)

 

 

(475

)

 

(0.2

)

Provision for credit losses

 

13,569

 

 

10,122

 

 

18,894

 

 

2,270

 

 

14,236

 

 

3,447

 

 

34.1

 

 

 

(667

)

 

(4.7

)

Net interest income after provision for credit losses

 

236,755

 

 

240,785

 

 

229,994

 

 

246,851

 

 

236,563

 

 

(4,030

)

 

(1.7

)

 

 

192

 

 

0.1

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leasing and equipment finance

 

42,126

 

 

41,139

 

 

55,311

 

 

45,045

 

 

42,904

 

 

987

 

 

2.4

 

 

 

(778

)

 

(1.8

)

Fees and service charges

 

32,477

 

 

31,324

 

 

36,206

 

 

32,574

 

 

32,670

 

 

1,153

 

 

3.7

 

 

 

(193

)

 

(0.6

)

Card revenue

 

15,632

 

 

14,243

 

 

15,078

 

 

15,065

 

 

14,962

 

 

1,389

 

 

9.8

 

 

 

670

 

 

4.5

 

ATM revenue

 

4,863

 

 

4,440

 

 

5,054

 

 

5,053

 

 

4,933

 

 

423

 

 

9.5

 

 

 

(70

)

 

(1.4

)

Gains on sales of loans, net

 

10,828

 

 

7,972

 

 

8,419

 

 

8,764

 

 

7,192

 

 

2,856

 

 

35.8

 

 

 

3,636

 

 

50.6

 

Servicing fee income

 

4,523

 

 

5,110

 

 

5,523

 

 

6,032

 

 

7,484

 

 

(587

)

 

(11.5

)

 

 

(2,961

)

 

(39.6

)

Gains (losses) on debt securities, net

 

1,066

 

 

451

 

 

167

 

 

94

 

 

24

 

 

615

 

 

136.4

 

 

 

1,042

 

 

N.M.

Other

 

1,936

 

 

2,347

 

 

2,375

 

 

3,818

 

 

3,934

 

 

(411

)

 

(17.5

)

 

 

(1,998

)

 

(50.8

)

Total non-interest income

 

113,451

 

 

107,026

 

 

128,133

 

 

116,445

 

 

114,103

 

 

6,425

 

 

6.0

 

 

 

(652

)

 

(0.6

)

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

114,369

 

 

121,557

 

 

129,521

 

 

123,127

 

 

120,575

 

 

(7,188

)

 

(5.9

)

 

 

(6,206

)

 

(5.1

)

Occupancy and equipment

 

41,828

 

 

41,737

 

 

42,250

 

 

42,337

 

 

40,711

 

 

91

 

 

0.2

 

 

 

1,117

 

 

2.7

 

Lease financing equipment depreciation

 

19,133

 

 

19,256

 

 

19,085

 

 

19,525

 

 

17,945

 

 

(123

)

 

(0.6

)

 

 

1,188

 

 

6.6

 

Foreclosed real estate and repossessed assets, net

 

2,448

 

 

4,630

 

 

4,396

 

 

3,881

 

 

3,857

 

 

(2,182

)

 

(47.1

)

 

 

(1,409

)

 

(36.5

)

Merger-related expenses

 

4,226

 

 

9,458

 

 

 

 

 

(5,232

)

 

(55.3

)

 

 

4,226

 

 

N.M.

Other

 

54,845

 

 

56,437

 

 

54,706

 

 

57,553

 

 

88,951

 

 

(1,592

)

 

(2.8

)

 

 

(34,106

)

 

(38.3

)

Total non-interest expense

 

236,849

 

 

253,075

 

 

249,958

 

 

246,423

 

 

272,039

 

 

(16,226

)

 

(6.4

)

 

 

(35,190

)

 

(12.9

)

Income before income tax expense

 

113,357

 

 

94,736

 

 

108,169

 

 

116,873

 

 

78,627

 

 

18,621

 

 

19.7

 

 

 

34,730

 

 

44.2

 

Income tax expense

 

19,314

 

 

21,287

 

 

20,013

 

 

28,034

 

 

16,418

 

 

(1,973

)

 

(9.3

)

 

 

2,896

 

 

17.6

 

Income after income tax expense

 

94,043

 

 

73,449

 

 

88,156

 

 

88,839

 

 

62,209

 

 

20,594

 

 

28.0

 

 

 

31,834

 

 

51.2

 

Income attributable to non-controlling interest

 

3,616

 

 

2,955

 

 

2,504

 

 

2,643

 

 

3,460

 

 

661

 

 

22.4

 

 

 

156

 

 

4.5

 

Net income attributable to TCF Financial Corporation

 

90,427

 

 

70,494

 

 

85,652

 

 

86,196

 

 

58,749

 

 

19,933

 

 

28.3

 

 

 

31,678

 

 

53.9

 

Preferred stock dividends

 

2,494

 

 

2,493

 

 

2,494

 

 

2,494

 

 

2,494

 

 

1

 

 

 

 

Net income available to common stockholders

$

87,933

 

$

68,001

 

$

83,158

 

$

83,702

 

$

56,255

 

$

19,932

 

 

29.3

 

 

$

31,678

 

 

56.3

 

 

N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income (Unaudited)

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

Change

(Dollars in thousands, except per share data)

2019

 

2018

 

$

 

%

Interest income:

 

 

 

 

 

 

 

 

Loans and leases

$

559,041

 

$

529,655

 

$

29,386

 

 

5.5

 

%

Debt securities available for sale

 

41,140

 

 

22,639

 

 

18,501

 

 

81.7

 

 

Debt securities held to maturity

 

1,459

 

 

2,017

 

 

(558

)

 

(27.7

)

 

Loans held for sale and other

 

8,548

 

 

7,274

 

 

1,274

 

 

17.5

 

 

Total interest income

 

610,188

 

 

561,585

 

 

48,603

 

 

8.7

 

 

Interest expense:

 

 

 

 

 

 

 

 

Deposits

 

78,022

 

 

46,463

 

 

31,559

 

 

67.9

 

 

Borrowings

 

30,935

 

 

21,124

 

 

9,811

 

 

46.4

 

 

Total interest expense

 

108,957

 

 

67,587

 

 

41,370

 

 

61.2

 

 

Net interest income

 

501,231

 

 

493,998

 

 

7,233

 

 

1.5

 

 

Provision for credit losses

 

23,691

 

 

25,604

 

 

(1,913

)

 

(7.5

)

 

Net interest income after provision for credit losses

 

477,540

 

 

468,394

 

 

9,146

 

 

2.0

 

 

Non-interest income:

 

 

 

 

 

 

 

 

Leasing and equipment finance

 

83,265

 

 

84,751

 

 

(1,486

)

 

(1.8

)

 

Fees and service charges

 

63,801

 

 

63,421

 

 

380

 

 

0.6

 

 

Card revenue

 

29,875

 

 

28,721

 

 

1,154

 

 

4.0

 

 

ATM revenue

 

9,303

 

 

9,583

 

 

(280

)

 

(2.9

)

 

Gains on sales of loans, net

 

18,800

 

 

16,315

 

 

2,485

 

 

15.2

 

 

Servicing fee income

 

9,633

 

 

15,779

 

 

(6,146

)

 

(39.0

)

 

Gains (losses) on debt securities, net

 

1,517

 

 

87

 

 

1,430

 

 

N.M.

 

Other

 

4,283

 

 

7,650

 

 

(3,367

)

 

(44.0

)

 

Total non-interest income

 

220,477

 

 

226,307

 

 

(5,830

)

 

(2.6

)

 

Non-interest expense:

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

235,926

 

 

244,415

 

 

(8,489

)

 

(3.5

)

 

Occupancy and equipment

 

83,565

 

 

81,225

 

 

2,340

 

 

2.9

 

 

Lease financing equipment depreciation

 

38,389

 

 

35,219

 

 

3,170

 

 

9.0

 

 

Foreclosed real estate and repossessed assets, net

 

7,078

 

 

8,773

 

 

(1,695

)

 

(19.3

)

 

Merger-related expenses

 

13,684

 

 

 

13,684

 

 

N.M.

 

Other

 

111,282

 

 

148,387

 

 

(37,105

)

 

(25.0

)

 

Total non-interest expense

 

489,924

 

 

518,019

 

 

(28,095

)

 

(5.4

)

 

Income before income tax expense

 

208,093

 

 

176,682

 

 

31,411

 

 

17.8

 

 

Income tax expense

 

40,601

 

 

38,049

 

 

2,552

 

 

6.7

 

 

Income after income tax expense

 

167,492

 

 

138,633

 

 

28,859

 

 

20.8

 

 

Income attributable to non-controlling interest

 

6,571

 

 

6,123

 

 

448

 

 

7.3

 

 

Net income attributable to TCF Financial Corporation

 

160,921

 

 

132,510

 

 

28,411

 

 

21.4

 

 

Preferred stock dividends

 

4,987

 

 

6,600

 

 

(1,613

)

 

(24.4

)

 

Impact of preferred stock redemption

 

 

3,481

 

 

(3,481

)

 

(100.0

)

 

Net income available to common stockholders

$

155,934

 

$

122,429

 

$

33,505

 

 

27.4

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

Basic

$

0.96

 

$

0.73

 

$

0.23

 

 

31.5

 

%

Diluted

 

0.96

 

 

0.73

 

 

0.23

 

 

31.5

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

$

0.30

 

$

0.30

 

$

 

%

 

N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Average Balance Sheets, Yields and Rates (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended June 30,

 

2019

 

2018

 

Average

 

 

 

Yields and

 

Average

 

 

 

Yields and

(Dollars in thousands)

Balance

 

Interest(1)

 

Rates(1)(2)

 

Balance

 

Interest(1)

 

Rates(1)(2)

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

Investments and other

$

392,193

 

$

3,651

 

3.71

%

 

$

309,120

 

$

2,857

 

3.71

%

Debt securities held to maturity

 

146,296

 

 

924

 

2.53

 

 

 

155,779

 

 

998

 

2.56

 

Debt securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

2,711,984

 

 

21,117

 

3.11

 

 

 

1,262,642

 

 

8,163

 

2.59

 

Tax-exempt(3)

 

222,534

 

 

1,530

 

2.75

 

 

 

828,131

 

 

5,510

 

2.66

 

Loans and leases held for sale

 

40,835

 

 

596

 

5.86

 

 

 

45,525

 

 

672

 

5.93

 

Loans and leases:(4)

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate:

 

 

 

 

 

 

 

 

 

 

 

Fixed-rate

 

2,349,154

 

 

29,159

 

4.97

 

 

 

1,715,289

 

 

23,612

 

5.52

 

Variable- and adjustable-rate

 

2,985,714

 

 

50,673

 

6.81

 

 

 

3,026,310

 

 

48,331

 

6.41

 

Total consumer real estate

 

5,334,868

 

 

79,832

 

6.00

 

 

 

4,741,599

 

 

71,943

 

6.09

 

Commercial:

 

 

 

 

 

 

 

 

 

 

 

Fixed-rate

 

817,744

 

 

9,013

 

4.42

 

 

 

900,462

 

 

10,087

 

4.49

 

Variable- and adjustable-rate

 

3,168,127

 

 

44,843

 

5.68

 

 

 

2,802,059

 

 

38,044

 

5.45

 

Total commercial

 

3,985,871

 

 

53,856

 

5.42

 

 

 

3,702,521

 

 

48,131

 

5.21

 

Leasing and equipment finance

 

4,743,747

 

 

60,554

 

5.11

 

 

 

4,639,703

 

 

57,236

 

4.93

 

Inventory finance

 

3,588,051

 

 

64,967

 

7.26

 

 

 

3,299,996

 

 

57,138

 

6.94

 

Auto finance

 

1,575,715

 

 

21,121

 

5.38

 

 

 

2,695,943

 

 

35,632

 

5.30

 

Other

 

10,918

 

 

131

 

4.78

 

 

 

13,845

 

 

143

 

4.10

 

Total loans and leases

 

19,239,170

 

 

280,461

 

5.84

 

 

 

19,093,607

 

 

270,223

 

5.67

 

Total interest-earning assets

 

22,753,012

 

 

308,279

 

5.43

 

 

 

21,694,804

 

 

288,423

 

5.33

 

Other assets

 

1,730,810

 

 

 

 

 

 

1,430,621

 

 

 

 

Total assets

$

24,483,822

 

 

 

 

 

$

23,125,425

 

 

 

 

LIABILITIES AND EQUITY:

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing deposits

$

3,980,811

 

 

 

 

 

$

3,879,048

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

Checking

 

2,479,814

 

 

440

 

0.07

 

 

 

2,460,709

 

 

119

 

0.02

 

Savings

 

6,452,510

 

 

12,314

 

0.77

 

 

 

5,542,565

 

 

3,736

 

0.27

 

Money market

 

1,430,556

 

 

4,588

 

1.29

 

 

 

1,572,560

 

 

2,620

 

0.67

 

Certificates of deposit

 

4,527,822

 

 

23,200

 

2.05

 

 

 

4,909,422

 

 

17,478

 

1.43

 

Total interest-bearing deposits

 

14,890,702

 

 

40,542

 

1.09

 

 

 

14,485,256

 

 

23,953

 

0.66

 

Total deposits

 

18,871,513

 

 

40,542

 

0.86

 

 

 

18,364,304

 

 

23,953

 

0.52

 

Borrowings:

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

321,043

 

 

2,131

 

2.63

 

 

 

3,116

 

 

18

 

2.33

 

Long-term borrowings

 

1,657,527

 

 

13,946

 

3.34

 

 

 

1,531,389

 

 

11,553

 

3.02

 

Total borrowings

 

1,978,570

 

 

16,077

 

3.23

 

 

 

1,534,505

 

 

11,571

 

3.02

 

Total interest-bearing liabilities

 

16,869,272

 

 

56,619

 

1.34

 

 

 

16,019,761

 

 

35,524

 

0.89

 

Total deposits and borrowings

 

20,850,083

 

 

56,619

 

1.09

 

 

 

19,898,809

 

 

35,524

 

0.72

 

Accrued expenses and other liabilities

 

969,723

 

 

 

 

 

 

714,488

 

 

 

 

Total liabilities

 

21,819,806

 

 

 

 

 

 

20,613,297

 

 

 

 

Total TCF Financial Corporation stockholders' equity

 

2,634,386

 

 

 

 

 

 

2,483,474

 

 

 

 

Non-controlling interest in subsidiaries

 

29,630

 

 

 

 

 

 

28,654

 

 

 

 

Total equity

 

2,664,016

 

 

 

 

 

 

2,512,128

 

 

 

 

Total liabilities and equity

$

24,483,822

 

 

 

 

 

$

23,125,425

 

 

 

 

Net interest income and margin

 

 

$

251,660

 

4.43

 

 

 

 

$

252,899

 

4.67

 

(1) Interest and yields are presented on a fully tax-equivalent basis.
(2) Annualized
(3) The yield on tax-exempt debt securities available for sale is computed on a tax-equivalent basis using a statutory federal income tax rate of 21%.
(4) Average balances of loans and leases include non-accrual loans and leases and are presented net of unearned income.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Average Balance Sheets, Yields and Rates (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

2019

 

2018

 

Average

 

 

 

Yields and

 

Average

 

 

 

Yields and

(Dollars in thousands)

Balance

 

Interest(1)

 

Rates(1)(2)

 

Balance

 

Interest(1)

 

Rates(1)(2)

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

Investments and other

$

379,513

 

$

7,132

 

3.77

%

 

$

320,655

 

$

5,633

 

3.54

%

Debt securities held to maturity

 

146,922

 

 

1,459

 

1.99

 

 

 

157,450

 

 

2,017

 

2.56

 

Debt securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

2,418,221

 

 

37,248

 

3.08

 

 

 

1,123,017

 

 

13,976

 

2.49

 

Tax-exempt(3)

 

368,952

 

 

4,927

 

2.67

 

 

 

824,906

 

 

10,966

 

2.66

 

Loans and leases held for sale

 

47,980

 

 

1,416

 

5.94

 

 

 

54,261

 

 

1,641

 

6.09

 

Loans and leases:(4)

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate:

 

 

 

 

 

 

 

 

 

 

 

Fixed-rate

 

2,350,946

 

 

59,046

 

5.05

 

 

 

1,750,765

 

 

48,225

 

5.55

 

Variable- and adjustable-rate

 

3,013,329

 

 

102,360

 

6.85

 

 

 

3,019,212

 

 

94,212

 

6.29

 

Total consumer real estate

 

5,364,275

 

 

161,406

 

6.06

 

 

 

4,769,977

 

 

142,437

 

6.02

 

Commercial:

 

 

 

 

 

 

 

 

 

 

 

Fixed-rate

 

817,498

 

 

18,077

 

4.46

 

 

 

915,784

 

 

20,684

 

4.55

 

Variable- and adjustable-rate

 

3,090,597

 

 

88,375

 

5.77

 

 

 

2,736,267

 

 

71,204

 

5.25

 

Total commercial

 

3,908,095

 

 

106,452

 

5.49

 

 

 

3,652,051

 

 

91,888

 

5.07

 

Leasing and equipment finance

 

4,699,969

 

 

119,775

 

5.10

 

 

 

4,665,144

 

 

113,643

 

4.87

 

Inventory finance

 

3,521,537

 

 

127,832

 

7.32

 

 

 

3,214,618

 

 

108,333

 

6.80

 

Auto finance

 

1,707,690

 

 

45,336

 

5.35

 

 

 

2,857,169

 

 

74,917

 

5.29

 

Other

 

11,298

 

 

264

 

4.69

 

 

 

14,145

 

 

290

 

4.13

 

Total loans and leases

 

19,212,864

 

 

561,065

 

5.88

 

 

 

19,173,104

 

 

531,508

 

5.58

 

Total interest-earning assets

 

22,574,452

 

 

613,247

 

5.46

 

 

 

21,653,393

 

 

565,741

 

5.26

 

Other assets

 

1,721,970

 

 

 

 

 

 

1,442,117

 

 

 

 

Total assets

$

24,296,422

 

 

 

 

 

$

23,095,510

 

 

 

 

LIABILITIES AND EQUITY:

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing deposits

$

3,950,447

 

 

 

 

 

$

3,812,765

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

Checking

 

2,468,852

 

 

827

 

0.07

 

 

 

2,461,126

 

 

232

 

0.02

 

Savings

 

6,353,800

 

 

22,984

 

0.73

 

 

 

5,469,523

 

 

6,901

 

0.25

 

Money market

 

1,460,427

 

 

9,041

 

1.25

 

 

 

1,634,965

 

 

5,029

 

0.62

 

Certificates of deposit

 

4,574,710

 

 

45,170

 

1.99

 

 

 

4,953,533

 

 

34,301

 

1.40

 

Total interest-bearing deposits

 

14,857,789

 

 

78,022

 

1.06

 

 

 

14,519,147

 

 

46,463

 

0.65

 

Total deposits

 

18,808,236

 

 

78,022

 

0.84

 

 

 

18,331,912

 

 

46,463

 

0.51

 

Borrowings:

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

307,347

 

 

4,088

 

2.65

 

 

 

3,532

 

 

37

 

2.14

 

Long-term borrowings

 

1,579,613

 

 

26,847

 

3.39

 

 

 

1,477,531

 

 

21,087

 

2.87

 

Total borrowings

 

1,886,960

 

 

30,935

 

3.27

 

 

 

1,481,063

 

 

21,124

 

2.87

 

Total interest-bearing liabilities

 

16,744,749

 

 

108,957

 

1.31

 

 

 

16,000,210

 

 

67,587

 

0.85

 

Total deposits and borrowings

 

20,695,196

 

 

108,957

 

1.06

 

 

 

19,812,975

 

 

67,587

 

0.69

 

Accrued expenses and other liabilities

 

979,359

 

 

 

 

 

 

736,201

 

 

 

 

Total liabilities

 

21,674,555

 

 

 

 

 

 

20,549,176

 

 

 

 

Total TCF Financial Corporation stockholders' equity

 

2,594,778

 

 

 

 

 

 

2,520,396

 

 

 

 

Non-controlling interest in subsidiaries

 

27,089

 

 

 

 

 

 

25,938

 

 

 

 

Total equity

 

2,621,867

 

 

 

 

 

 

2,546,334

 

 

 

 

Total liabilities and equity

$

24,296,422

 

 

 

 

 

$

23,095,510

 

 

 

 

Net interest income and margin

 

 

$

504,290

 

4.49

 

 

 

 

$

498,154

 

4.63

 

(1) Interest and yields are presented on a fully tax-equivalent basis.
(2) Annualized
(3) The yield on tax-exempt debt securities available for sale is computed on a tax-equivalent basis using a statutory federal income tax rate of 21%.
(4) Average balances of loans and leases include non-accrual loans and leases and are presented net of unearned income.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Quarterly Average Balance Sheets (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

Change From

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Mar. 31, 2019

 

Jun. 30, 2018

(Dollars in thousands)

2019

 

2019

 

2018

 

2018

 

2018

 

$

 

%

 

$

 

%

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments and other

$

392,193

 

$

366,691

 

$

330,359

 

$

306,257

 

$

309,120

 

$

25,502

 

 

7.0

%

 

$

83,073

 

 

26.9

%

Debt securities held to maturity

 

146,296

 

 

147,556

 

 

150,016

 

 

153,652

 

 

155,779

 

 

(1,260

)

 

(0.9

)

 

 

(9,483

)

 

(6.1

)

Debt securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

2,711,984

 

 

2,121,196

 

 

1,779,654

 

 

1,525,665

 

 

1,262,642

 

 

590,788

 

 

27.9

 

 

 

1,449,342

 

 

114.8

 

Tax-exempt

 

222,534

 

 

516,995

 

 

788,806

 

 

823,854

 

 

828,131

 

 

(294,461

)

 

(57.0

)

 

 

(605,597

)

 

(73.1

)

Loans and leases held for sale

 

40,835

 

 

55,204

 

 

86,169

 

 

216,669

 

 

45,525

 

 

(14,369

)

 

(26.0

)

 

 

(4,690

)

 

(10.3

)

Loans and leases:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-rate

 

2,349,154

 

 

2,352,758

 

 

1,962,804

 

 

1,694,661

 

 

1,715,289

 

 

(3,604

)

 

(0.2

)

 

 

633,865

 

 

37.0

 

Variable- and adjustable-rate

 

2,985,714

 

 

3,041,252

 

 

3,067,216

 

 

3,002,225

 

 

3,026,310

 

 

(55,538

)

 

(1.8

)

 

 

(40,596

)

 

(1.3

)

Total consumer real estate

 

5,334,868

 

 

5,394,010

 

 

5,030,020

 

 

4,696,886

 

 

4,741,599

 

 

(59,142

)

 

(1.1

)

 

 

593,269

 

 

12.5

 

Commercial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-rate

 

817,744

 

 

817,250

 

 

815,626

 

 

856,324

 

 

900,462

 

 

494

 

 

0.1

 

 

 

(82,718

)

 

(9.2

)

Variable- and adjustable-rate

 

3,168,127

 

 

3,012,206

 

 

2,932,739

 

 

2,921,471

 

 

2,802,059

 

 

155,921

 

 

5.2

 

 

 

366,068

 

 

13.1

 

Total commercial

 

3,985,871

 

 

3,829,456

 

 

3,748,365

 

 

3,777,795

 

 

3,702,521

 

 

156,415

 

 

4.1

 

 

 

283,350

 

 

7.7

 

Leasing and equipment finance

 

4,743,747

 

 

4,655,705

 

 

4,616,715

 

 

4,624,968

 

 

4,639,703

 

 

88,042

 

 

1.9

 

 

 

104,044

 

 

2.2

 

Inventory finance

 

3,588,051

 

 

3,454,283

 

 

3,024,961

 

 

2,866,460

 

 

3,299,996

 

 

133,768

 

 

3.9

 

 

 

288,055

 

 

8.7

 

Auto finance

 

1,575,715

 

 

1,841,130

 

 

2,121,969

 

 

2,435,868

 

 

2,695,943

 

 

(265,415

)

 

(14.4

)

 

 

(1,120,228

)

 

(41.6

)

Other

 

10,918

 

 

11,682

 

 

12,599

 

 

13,547

 

 

13,845

 

 

(764

)

 

(6.5

)

 

 

(2,927

)

 

(21.1

)

Total loans and leases

 

19,239,170

 

 

19,186,266

 

 

18,554,629

 

 

18,415,524

 

 

19,093,607

 

 

52,904

 

 

0.3

 

 

 

145,563

 

 

0.8

 

Total interest-earning assets

 

22,753,012

 

 

22,393,908

 

 

21,689,633

 

 

21,441,621

 

 

21,694,804

 

 

359,104

 

 

1.6

 

 

 

1,058,208

 

 

4.9

 

Other assets

 

1,730,810

 

 

1,713,033

 

 

1,464,620

 

 

1,462,783

 

 

1,430,621

 

 

17,777

 

 

1.0

 

 

 

300,189

 

 

21.0

 

Total assets

$

24,483,822

 

$

24,106,941

 

$

23,154,253

 

$

22,904,404

 

$

23,125,425

 

$

376,881

 

 

1.6

 

 

$

1,358,397

 

 

5.9

 

LIABILITIES AND EQUITY:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing deposits

$

3,980,811

 

$

3,919,746

 

$

3,873,023

 

$

3,874,421

 

$

3,879,048

 

$

61,065

 

 

1.6

%

 

$

101,763

 

 

2.6

%

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

2,479,814

 

 

2,457,767

 

 

2,403,370

 

 

2,427,288

 

 

2,460,709

 

 

22,047

 

 

0.9

 

 

 

19,105

 

 

0.8

 

Savings

 

6,452,510

 

 

6,253,992

 

 

5,922,724

 

 

5,620,161

 

 

5,542,565

 

 

198,518

 

 

3.2

 

 

 

909,945

 

 

16.4

 

Money market

 

1,430,556

 

 

1,490,631

 

 

1,449,531

 

 

1,496,223

 

 

1,572,560

 

 

(60,075

)

 

(4.0

)

 

 

(142,004

)

 

(9.0

)

Certificates of deposit

 

4,527,822

 

 

4,622,120

 

 

4,818,211

 

 

4,868,286

 

 

4,909,422

 

 

(94,298

)

 

(2.0

)

 

 

(381,600

)

 

(7.8

)

Total interest-bearing deposits

 

14,890,702

 

 

14,824,510

 

 

14,593,836

 

 

14,411,958

 

 

14,485,256

 

 

66,192

 

 

0.4

 

 

 

405,446

 

 

2.8

 

Total deposits

 

18,871,513

 

 

18,744,256

 

 

18,466,859

 

 

18,286,379

 

 

18,364,304

 

 

127,257

 

 

0.7

 

 

 

507,209

 

 

2.8

 

Borrowings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

321,043

 

 

293,499

 

 

2,738

 

 

3,357

 

 

3,116

 

 

27,544

 

 

9.4

 

 

 

317,927

 

 

N.M.

Long-term borrowings

 

1,657,527

 

 

1,500,832

 

 

1,344,228

 

 

1,351,585

 

 

1,531,389

 

 

156,695

 

 

10.4

 

 

 

126,138

 

 

8.2

 

Total borrowings

 

1,978,570

 

 

1,794,331

 

 

1,346,966

 

 

1,354,942

 

 

1,534,505

 

 

184,239

 

 

10.3

 

 

 

444,065

 

 

28.9

 

Total interest-bearing liabilities

 

16,869,272

 

 

16,618,841

 

 

15,940,802

 

 

15,766,900

 

 

16,019,761

 

 

250,431

 

 

1.5

 

 

 

849,511

 

 

5.3

 

Total deposits and borrowings

 

20,850,083

 

 

20,538,587

 

 

19,813,825

 

 

19,641,321

 

 

19,898,809

 

 

311,496

 

 

1.5

 

 

 

951,274

 

 

4.8

 

Accrued expenses and other liabilities

 

969,723

 

 

989,104

 

 

822,558

 

 

751,100

 

 

714,488

 

 

(19,381

)

 

(2.0

)

 

 

255,235

 

 

35.7

 

Total liabilities

 

21,819,806

 

 

21,527,691

 

 

20,636,383

 

 

20,392,421

 

 

20,613,297

 

 

292,115

 

 

1.4

 

 

 

1,206,509

 

 

5.9

 

Total TCF Financial Corporation stockholders' equity

 

2,634,386

 

 

2,554,729

 

 

2,495,952

 

 

2,488,435

 

 

2,483,474

 

 

79,657

 

 

3.1

 

 

 

150,912

 

 

6.1

 

Non-controlling interest in subsidiaries

 

29,630

 

 

24,521

 

 

21,918

 

 

23,548

 

 

28,654

 

 

5,109

 

 

20.8

 

 

 

976

 

 

3.4

 

Total equity

 

2,664,016

 

 

2,579,250

 

 

2,517,870

 

 

2,511,983

 

 

2,512,128

 

 

84,766

 

 

3.3

 

 

 

151,888

 

 

6.0

 

Total liabilities and equity

$

24,483,822

 

$

24,106,941

 

$

23,154,253

 

$

22,904,404

 

$

23,125,425

 

$

376,881

 

 

1.6

 

 

$

1,358,397

 

 

5.9

 

N.M. Not Meaningful
(1) Average balances of loans and leases include non-accrual loans and leases and are presented net of unearned income.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Quarterly Yields and Rates(1)(2) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

Change From

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

Jun. 30,

 

2019

 

2019

 

2018

 

2018

 

2018

 

2019

 

2018

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

Investments and other

3.71

%

 

3.82

%

 

3.90

%

 

4.01

%

 

3.71

%

 

(11

)

bps

bps

Debt securities held to maturity

2.53

 

 

1.45

 

 

2.58

 

 

2.57

 

 

2.56

 

 

108

 

 

(3

)

 

Debt securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

3.11

 

 

3.04

 

 

2.91

 

 

2.76

 

 

2.59

 

 

7

 

 

52

 

 

Tax-exempt(3)

2.75

 

 

2.63

 

 

2.66

 

 

2.66

 

 

2.66

 

 

12

 

 

9

 

 

Loans and leases held for sale

5.86

 

 

6.01

 

 

6.40

 

 

6.57

 

 

5.93

 

 

(15

)

 

(7

)

 

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-rate

4.97

 

 

5.12

 

 

5.33

 

 

5.46

 

 

5.52

 

 

(15

)

 

(55

)

 

Variable- and adjustable-rate

6.81

 

 

6.89

 

 

6.77

 

 

6.57

 

 

6.41

 

 

(8

)

 

40

 

 

Total consumer real estate

6.00

 

 

6.12

 

 

6.21

 

 

6.17

 

 

6.09

 

 

(12

)

 

(9

)

 

Commercial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-rate

4.42

 

 

4.50

 

 

4.51

 

 

4.55

 

 

4.49

 

 

(8

)

 

(7

)

 

Variable- and adjustable-rate

5.68

 

 

5.86

 

 

5.65

 

 

5.45

 

 

5.45

 

 

(18

)

 

23

 

 

Total commercial

5.42

 

 

5.57

 

 

5.40

 

 

5.25

 

 

5.21

 

 

(15

)

 

21

 

 

Leasing and equipment finance

5.11

 

 

5.09

 

 

5.11

 

 

5.00

 

 

4.93

 

 

2

 

 

18

 

 

Inventory finance

7.26

 

 

7.38

 

 

7.11

 

 

7.16

 

 

6.94

 

 

(12

)

 

32

 

 

Auto finance

5.38

 

 

5.33

 

 

5.39

 

 

5.36

 

 

5.30

 

 

5

 

 

8

 

 

Other

4.78

 

 

4.61

 

 

4.55

 

 

4.25

 

 

4.10

 

 

17

 

 

68

 

 

Total loans and leases

5.84

 

 

5.91

 

 

5.82

 

 

5.73

 

 

5.67

 

 

(7

)

 

17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest-earning assets

5.43

 

 

5.50

 

 

5.42

 

 

5.36

 

 

5.33

 

 

(7

)

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

0.07

 

 

0.06

 

 

0.04

 

 

0.04

 

 

0.02

 

 

1

 

 

5

 

 

Savings

0.77

 

 

0.69

 

 

0.54

 

 

0.35

 

 

0.27

 

 

8

 

 

50

 

 

Money market

1.29

 

 

1.21

 

 

0.99

 

 

0.78

 

 

0.67

 

 

8

 

 

62

 

 

Certificates of deposit

2.05

 

 

1.93

 

 

1.76

 

 

1.56

 

 

1.43

 

 

12

 

 

62

 

 

Total interest-bearing deposits

1.09

 

 

1.02

 

 

0.91

 

 

0.75

 

 

0.66

 

 

7

 

 

43

 

 

Total deposits

0.86

 

 

0.81

 

 

0.72

 

 

0.59

 

 

0.52

 

 

5

 

 

34

 

 

Borrowings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

2.63

 

 

2.67

 

 

2.76

 

 

2.46

 

 

2.33

 

 

(4

)

 

30

 

 

Long-term borrowings

3.34

 

 

3.44

 

 

3.34

 

 

3.15

 

 

3.02

 

 

(10

)

 

32

 

 

Total borrowings

3.23

 

 

3.31

 

 

3.34

 

 

3.15

 

 

3.02

 

 

(8

)

 

21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest-bearing liabilities

1.34

 

 

1.27

 

 

1.11

 

 

0.96

 

 

0.89

 

 

7

 

 

45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

4.43

 

 

4.56

 

 

4.60

 

 

4.66

 

 

4.67

 

 

(13

)

 

(24

)

 

(1) Annualized
(2) Yields are presented on a fully tax-equivalent basis.
(3) The yield on tax-exempt debt securities available for sale is computed on a tax-equivalent basis using a statutory federal income tax rate of 21%.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Summary of Credit Quality Data (Unaudited)

 

Allowance for Loan and Lease Losses

 

 

 

 

 

 

 

 

 

 

 

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

2019

 

2019

 

2018

 

2018

 

2018

 

 

% of

 

% of

 

% of

 

% of

 

% of

(Dollars in thousands)

Balance

Portfolio

Balance

Portfolio

Balance

Portfolio

Balance

Portfolio

Balance

Portfolio

Consumer real estate

$

43,980

0.83

%

$

43,820

0.82

%

$

44,866

0.83

%

$

45,258

0.92

%

$

43,954

0.95

%

Commercial

36,789

0.88

 

34,711

0.89

 

41,182

1.07

 

40,470

1.08

 

40,291

1.09

 

Leasing and equipment finance

26,270

0.54

 

24,832

0.53

 

23,791

0.51

 

22,926

0.50

 

22,247

0.48

 

Inventory finance

12,733

0.37

 

14,132

0.38

 

12,456

0.40

 

11,361

0.39

 

11,840

0.39

 

Auto finance

25,940

1.78

 

29,854

1.75

 

34,329

1.73

 

39,852

1.75

 

46,608

1.79

 

Other

791

4.31

 

623

3.47

 

822

3.86

 

754

3.57

 

679

3.24

 

Total

$

146,503

0.76

 

$

147,972

0.76

 

$

157,446

0.83

 

$

160,621

0.87

 

$

165,619

0.89

 

Changes in Allowance for Loan and Lease Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

Change From

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Jun. 30,

(In thousands)

2019

 

2019

 

2018

 

2018

 

2018

 

2019

 

2018

Balance, beginning of period

$

147,972

 

 

$

157,446

 

 

$

160,621

 

 

$

165,619

 

 

$

167,703

 

 

$

(9,474

)

 

$

(19,731

)

Charge-offs

 

(21,066

)

 

 

(24,431

)

 

 

(27,227

)

 

 

(19,448

)

 

 

(18,188

)

 

 

3,365

 

 

 

(2,878

)

Recoveries

 

6,984

 

 

 

5,777

 

 

 

5,913

 

 

 

12,658

 

 

 

5,418

 

 

 

1,207

 

 

 

1,566

 

Net (charge-offs) recoveries

 

(14,082

)

 

 

(18,654

)

 

 

(21,314

)

 

 

(6,790

)

 

 

(12,770

)

 

 

4,572

 

 

 

(1,312

)

Provision for credit losses

 

13,569

 

 

 

10,122

 

 

 

18,894

 

 

 

2,270

 

 

 

14,236

 

 

 

3,447

 

 

 

(667

)

Other

 

(956

)

 

 

(942

)

 

 

(755

)

 

 

(478

)

 

 

(3,550

)

 

 

(14

)

 

 

2,594

 

Balance, end of period

$

146,503

 

 

$

147,972

 

 

$

157,446

 

 

$

160,621

 

 

$

165,619

 

 

$

(1,469

)

 

$

(19,116

)

Net Charge-offs

 

 

 

 

 

Quarter Ended

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

2019

 

2019

 

2018

 

2018

 

2018

(Dollars in thousands)

Balance

 

Rate(1)

 

Balance

 

Rate(1)

 

Balance

 

Rate(1)

 

Balance

 

Rate(1)

 

Balance

 

Rate(1)

Consumer real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First mortgage lien

$

162

 

0.03

%

 

$

628

 

 

0.10

%

 

$

123

 

 

0.02

%

 

$

(3,721

)

 

(0.82

)%

 

$

714

 

 

0.16

%

Junior lien

 

152

 

0.02

 

 

 

(180

)

 

(0.02

)

 

 

(210

)

 

(0.03

)

 

 

(2,709

)

 

(0.37

)

 

 

64

 

 

0.01

 

Total consumer real estate

 

314

 

0.02

 

 

 

448

 

 

0.03

 

 

 

(87

)

 

(0.01

)

 

 

(6,430

)

 

(0.55

)

 

 

778

 

 

0.07

 

Commercial

 

3,445

 

0.35

 

 

 

2,088

 

 

0.22

 

 

 

3,406

 

 

0.36

 

 

 

(8

)

 

 

 

(27

)

 

Leasing and equipment finance

 

2,043

 

0.17

 

 

 

2,470

 

 

0.21

 

 

 

2,067

 

 

0.18

 

 

 

1,930

 

 

0.17

 

 

 

2,106

 

 

0.18

 

Inventory finance

 

1,289

 

0.14

 

 

 

2,087

 

 

0.24

 

 

 

4,629

 

 

0.61

 

 

 

637

 

 

0.09

 

 

 

517

 

 

0.06

 

Auto finance

 

5,903

 

1.50

 

 

 

10,182

 

 

2.21

 

 

 

9,887

 

 

1.86

 

 

 

9,485

 

 

1.56

 

 

 

8,516

 

 

1.26

 

Other

 

1,088

 

N.M.

 

 

1,379

 

 

N.M.

 

 

1,412

 

 

N.M.

 

 

1,176

 

 

N.M.

 

 

880

 

 

N.M.

Total

$

14,082

 

0.29

 

 

$

18,654

 

 

0.39

 

 

$

21,314

 

 

0.46

 

 

$

6,790

 

 

0.15

 

 

$

12,770

 

 

0.27

 

N.M. Not Meaningful
(1) Annualized net charge-off rate based on average loans and leases

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Summary of Credit Quality Data (Unaudited), Continued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Over 60-Day Delinquencies as a Percentage of Portfolio(1)

 

 

 

 

 

 

 

 

 

 

 

Change From

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Jun. 30,

 

2019

 

2019

 

2018

 

2018

 

2018

 

2019

 

2018

Consumer real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First mortgage lien

0.17

%

 

0.20

%

 

0.19

%

 

0.18

%

 

0.20

%

 

(3

)

bps

(3

)

bps

Junior lien

0.06

 

 

0.08

 

 

0.04

 

 

0.04

 

 

0.07

 

 

(2

)

 

(1

)

 

Total consumer real estate

0.11

 

 

0.14

 

 

0.11

 

 

0.10

 

 

0.12

 

 

(3

)

 

(1

)

 

Commercial

 

 

 

 

 

 

 

Leasing and equipment finance

0.25

 

 

0.20

 

 

0.23

 

 

0.15

 

 

0.11

 

 

5

 

 

14

 

 

Inventory finance

 

 

0.01

 

 

 

 

 

 

Auto finance

0.54

 

 

0.38

 

 

0.59

 

 

0.41

 

 

0.33

 

 

16

 

 

21

 

 

Other

0.15

 

 

0.11

 

 

0.14

 

 

0.30

 

 

0.16

 

 

4

 

 

(1

)

 

Subtotal

0.13

 

 

0.12

 

 

0.15

 

 

0.11

 

 

0.11

 

 

1

 

 

2

 

 

Portfolios acquired with deteriorated credit quality

19.87

 

 

6.75

 

 

4.65

 

 

16.70

 

 

13.48

 

 

1312

 

 

639

 

 

Total delinquencies

0.14

 

 

0.12

 

 

0.15

 

 

0.12

 

 

0.11

 

 

2

 

 

3

 

 

(1) Excludes non-accrual loans and leases

Non-performing Assets

 

 

 

 

 

 

 

 

 

 

 

Change From

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Jun. 30,

(Dollars in thousands)

2019

 

2019

 

2018

 

2018

 

2018

 

2019

 

2018

Non-accrual loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate

$67,446

 

$65,518

 

$58,765

 

$55,092

 

$49,155

 

$1,928

 

$18,291

 

Commercial

6,793

 

7,529

 

15,025

 

9,888

 

9,978

 

(736)

 

(3,185)

 

Leasing and equipment finance

22,708

 

20,235

 

15,264

 

16,061

 

16,300

 

2,473

 

6,408

 

Inventory finance

2,413

 

969

 

8,283

 

1,640

 

2,093

 

1,444

 

320

 

Auto finance

8,633

 

9,033

 

8,578

 

7,613

 

7,312

 

(400)

 

1,321

 

Other

 

1

 

3

 

2

 

21

 

(1)

 

(21)

 

Total non-accrual loans and leases

107,993

 

103,285

 

105,918

 

90,296

 

84,859

 

4,708

 

23,134

 

Other real estate owned

11,964

 

18,361

 

17,403

 

19,079

 

16,266

 

(6,397)

 

(4,302)

 

Total non-performing assets

$119,957

 

$121,646

 

$123,321

 

$109,375

 

$101,125

 

$(1,689)

 

$18,832

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans and leases as a percentage of total loans and leases

0.56%

 

0.53%

 

0.56%

 

0.49%

 

0.46%

 

3

bps

10

bps

Non-performing assets as a percentage of total loans and leases and other real estate owned

0.62

 

0.63

 

0.65

 

0.59

 

0.54

 

(1)

 

8

 

Allowance for loan and lease losses as a percentage of non-accrual loans and leases

135.66

 

143.27

 

148.65

 

177.88

 

195.17

 

(761)

 

(5,951)

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Capital Information (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At or For the Quarter Ended

 

Change From

(Dollars in thousands, except per share data)

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Jun. 30,

2019

 

2019

 

2018

 

2018

 

2018

 

2019

 

2018

Dividends declared per common share

$

0.15

 

 

$

0.15

 

 

$

0.15

 

 

$

0.15

 

 

$

0.15

 

 

%

%

Book value per common share

 

15.46

 

 

 

14.93

 

 

 

14.45

 

 

 

14.01

 

 

 

13.79

 

 

3.5

 

12.1

 

 

Tangible book value per common share(1)

 

14.39

 

 

 

13.86

 

 

 

13.38

 

 

 

12.96

 

 

 

12.73

 

 

3.8

 

13.0

 

 

Common equity to assets

 

10.22

%

 

 

10.02

%

 

 

9.99

%

 

 

10.21

%

 

 

9.97

%

 

20

bps

25

 

bps

Tangible common equity to tangible assets(1)

 

9.58

 

 

 

9.37

 

 

 

9.32

 

 

 

9.51

 

 

 

9.28

 

 

21

 

30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regulatory Capital:(2)