TCF Reports Third Quarter 2019 Results and Announces $150 Million Share Repurchase Authorization

TCF also announces quarterly cash dividends on common and preferred stock

DETROIT--()--TCF Financial Corporation (NYSE: TCF):

Third Quarter Highlights

  • Quarterly net income of $22.1 million, or $0.15 per diluted share
  • Adjusted diluted earnings per common share of $0.98(1), excluding $106.2 million, or $0.83 per share, after-tax impact of merger-related expenses and non-core items
  • Successfully closed merger of equals between Legacy TCF Financial Corporation (Legacy TCF) and Chemical Financial Corporation (Chemical) on August 1, 2019
  • Purchase accounting fair value credit mark of $183 million and interest rate mark of $66 million on the Chemical loans
  • Efficiency ratio of 91.32%; adjusted efficiency ratio of 58.74%(1)
  • Return on average common equity ("ROACE") of 1.75%; return on average tangible common equity ("ROATCE") of 2.68%(1); adjusted ROATCE of 14.96%(1)
  • Repositioned assets through investment securities sales and termination of interest rate swaps to lower the risk profile, reduce asset sensitivity and and enhance capital efficiency and liquidity
  • Transferred Legacy TCF auto finance portfolio to held-for-sale ($1.2 billion at September 30, 2019), resulting in a $19.3 million pre-tax loss, or $14.7 million after tax
  • Net charge-off rate as a percentage of average loans and leases of 0.39%, annualized
  • Common equity Tier 1 capital ratio of 10.88%
  • Announced $150 million share repurchase authorization on October 28, 2019
  • Announced quarterly cash dividends on common stock of $0.35 per share on October 28, 2019

Merger-related Expenses and Non-core Items in the Third Quarter(1)

  • Pre-tax merger-related expenses of $111.3 million, $82.9 million net of tax, or 64 cents per diluted common share
  • Pre-tax loss of $41.1 million, $23.3 million net of tax, or 19 cents per diluted common share related to non-core items, see summary of non-core adjustments below
(1)

Denotes a non-GAAP financial measure. See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables.

Note: TCF’s financial results for any periods ended prior to August 1, 2019 reflect Legacy TCF financial results only on a standalone basis. In addition, TCF’s reported financial results for the third quarter of 2019 reflect Legacy TCF financial results only for the month of July and the post-merger combined TCF financial results for August and September. As a result of these two factors, TCF’s financial results for the third quarter of 2019 may not be directly comparable to prior reported periods. The number of shares issued and outstanding, earnings per share, additional paid-in-capital and all references to share quantities of TCF have been retrospectively restated to reflect the equivalent number of shares issued in the Merger as the Merger was treated as a reverse merger.

Summary of Financial Results(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

At or For the Quarter Ended

 

Change From

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

Sep. 30,

(Dollars in thousands, except per share data)

2019

 

2019

 

2019

 

2018

 

2018

 

2019

 

2018

Financial Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to TCF

$

22,148

 

 

$

90,427

 

 

$

70,494

 

 

$

85,652

 

 

$

86,196

 

 

(75.5

)

%

(74.3

)

%

Net interest income

 

371,793

 

 

 

254,057

 

 

 

254,429

 

 

 

253,153

 

 

 

253,502

 

 

46.3

 

 

46.7

 

 

Basic earnings per common share

 

0.15

 

 

 

1.07

 

 

 

0.83

 

 

 

1.00

 

 

 

1.00

 

 

(86.0

)

 

(85.0

)

 

Diluted earnings per common share

 

0.15

 

 

 

1.07

 

 

 

0.83

 

 

 

1.00

 

 

 

1.00

 

 

(86.0

)

 

(85.0

)

 

Return on average assets ("ROAA")(3)

 

0.26

%

 

 

1.54

%

 

 

1.22

%

 

 

1.52

%

 

 

1.55

%

 

(128

)

bps

(129

)

bps

ROACE(3)

 

1.75

 

 

 

14.27

 

 

 

11.40

 

 

 

14.30

 

 

 

14.44

 

 

(1,252

)

 

(1,269

)

 

ROATCE(2)(3)

 

2.68

 

 

 

15.46

 

 

 

12.42

 

 

 

15.58

 

 

 

15.76

 

 

(1,278

)

 

(1,308

)

 

Net interest margin (FTE)(3)

 

4.14

 

 

 

4.49

 

 

 

4.61

 

 

 

4.67

 

 

 

4.73

 

 

(35

)

 

(59

)

 

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

 

0.39

 

 

 

0.29

 

 

 

0.39

 

 

 

0.46

 

 

 

0.15

 

 

10

 

 

24

 

 

Nonperforming assets as a percentage of total loans and leases and other real estate owned

 

0.62

 

 

 

0.62

 

 

 

0.63

 

 

 

0.65

 

 

 

0.59

 

 

 

 

3

 

 

Efficiency ratio

 

91.32

 

 

 

65.11

 

 

 

70.70

 

 

 

66.30

 

 

 

67.41

 

 

2,621

 

 

2,391

 

 

Adjusted Financial Results (non-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income attributable to TCF(2)

$

128,301

 

 

$

93,650

 

 

$

77,700

 

 

$

85,652

 

 

$

86,196

 

 

37.0

 

%

48.8

 

%

Adjusted diluted earnings per common share(2)

 

0.98

 

 

 

1.11

 

 

 

0.91

 

 

 

1.00

 

 

 

1.00

 

 

(11.7

)

 

(2.0

)

 

Adjusted ROAA(2)(3)

 

1.34

%

 

 

1.59

%

 

 

1.34

%

 

 

1.52

%

 

 

1.55

%

 

(25

)

bps

(21

)

bps

Adjusted ROACE(2)(3)

 

11.21

 

 

 

14.79

 

 

 

12.61

 

 

 

14.30

 

 

 

14.44

 

 

(358

)

 

(323

)

 

Adjusted ROATCE(2)(3)

 

14.96

 

 

 

16.02

 

 

 

13.72

 

 

 

15.58

 

 

 

15.76

 

 

(106

)

 

(80

)

 

Adjusted efficiency ratio(2)

 

58.74

 

 

 

61.48

 

 

 

65.67

 

 

 

63.89

 

 

 

64.91

 

 

(274

)

 

(617

)

 

(1) Financial results for any periods ended prior to August 1, 2019 reflect Legacy TCF financials on a standalone basis. Certain reclassifications have been made to prior period financial statements to conform to the current period presentation.

(2) Denotes a non-GAAP financial measure. See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables.

(3) Annualized.

The following table includes merger-related expenses and non-core items used to arrive at adjusted net income in the Adjusted Financial Results (non-GAAP) (see Reconciliation of Non-GAAP Financial Measures).

 

For the quarter ended September 30, 2019

(Dollars in thousands, except per share data)

Pre-tax income
(loss)

 

After-tax
benefit (loss)(1)

 

Per Share

Merger-related expenses

$

(111,259)

 

$

(82,862)

 

$

(0.64)

Non-core items:

 

 

 

 

 

Transfer of Legacy TCF auto finance portfolio to held-for-sale(2)

(19,264)

 

(14,664)

 

(0.11)

Termination of interest rate swaps(3)

(17,302)

 

(13,170)

 

(0.10)

Write-down of company-owned vacant land parcels(4)

(5,890)

 

(4,483)

 

(0.04)

Sale of certain investment securities(5)

5,869

 

4,467

 

0.03

Loan servicing rights impairment(3)

(4,520)

 

(3,441)

 

(0.03)

Tax basis adjustment benefit(6)

 

8,000

 

0.06

Total non-core items

$

(41,107)

 

$

(23,291)

 

$

(0.19)

Total merger-related and non-core items

$

(152,366)

 

$

(106,153)

 

$

(0.83)

(1) Net of tax benefit at TCF's normal tax rate and other tax benefits.

(2) Included within Net (loss) gain on sales of loans and leases.

(3) Included within Other noninterest income.

(4) Included within Other noninterest expense.

(5) Included within Net gains on investment securities.

(6) Included within Income tax (benefit) expense.

TCF Financial Corporation ("TCF" or the "Corporation") (NASDAQ: TCF) today reported net income of $22.1 million and diluted earnings per common share of 15 cents for the third quarter of 2019. Adjusted net income was $128.3 million, or 98 cents per diluted earnings per common share, for the third quarter of 2019, excluding merger-related expenses and non-core items of 83 cents per common share (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).

"Following the closing of the merger of equals on August 1, we continue to make progress on integration initiatives and I am optimistic about the growth outlook of the organization as we establish our roadmaps for execution on business synergy opportunities," said Craig R. Dahl, president and chief executive officer. "Our integration program and activities remain on track, and we continue to be focused on achieving targeted cost savings, planning for systems conversions and leveraging our full-scale product offering across our broader consumer and commercial customer base throughout the Midwest. Our teams are collaborating across the organization to ensure we continue to build on the momentum that each bank brings to the table, for both continued organic growth and taking care of our customers. As we go to market as One TCF, we are well positioned to deliver shareholder value through improved efficiency and return on capital, while maintaining an exceptional customer experience."

Net Interest Income and Net Interest Margin

Net interest income was $371.8 million for the third quarter of 2019. Purchase accounting accretion and amortization included in net interest income was $28.4 million. Net interest income, excluding purchase accounting accretion and amortization, was $343.4 million. Net interest margin on a fully tax-equivalent basis (FTE) was 4.14% for the third quarter of 2019. Net interest margin FTE, excluding purchase accounting accretion and amortization, was 3.83% (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).

Noninterest Income

Noninterest income was $94.3 million for the third quarter of 2019. Noninterest income included the following balance sheet repositioning actions considered to be non-core items: a $19.3 million loss related to the transfer of the Legacy TCF auto finance portfolio to held-for-sale, a $17.3 million loss related to the termination of interest rate swaps, and a gain of $5.9 million related to the sale of $1.6 billion of certain investment securities. Noninterest income additionally included $4.5 million of loan servicing rights impairment, also considered a non-core item. Adjusted noninterest income for the third quarter of 2019 was $129.5 million (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables). The third quarter of 2019 also included a $2.1 million unrealized loss related to interest rate swaps mark-to-market adjustments resulting from changes in the interest rate environment. Noninterest income, excluding the interest rate swap mark-to-market adjustment and non-core items discussed previously, was $131.6 million for the third quarter of 2019.

Noninterest Expense

Noninterest expense was $425.6 million for the third quarter of 2019 and included $111.3 million of merger-related expenses. Noninterest expense also included $5.9 million of expense, included within other noninterest expense, related to the write-down of company-owned vacant land parcels, considered a non-core item. Excluding merger-related expenses and the write-down of company-owned vacant land parcels, adjusted noninterest expense was $308.5 million (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).

Income Tax (Benefit) Expense

Income tax benefit for the third quarter of 2019 was $11.7 million. The third quarter of 2019 included an $8.0 million tax basis adjustment benefit. The third quarter of 2019 also included a $5.7 million benefit provided by the repricing of TCF's net deferred tax position in conjunction with the completion of the merger and is reflected in the after-tax impact of merger-related expenses.

Credit Quality

Provision for credit losses Provision for credit losses was $27.2 million for the third quarter of 2019.

Net charge-off rate The annualized net charge-offs as a percentage of average loans and leases was 0.39% for the third quarter of 2019.

Allowance for Loan and Lease Losses Allowance for loan and lease losses was $121.2 million, or 0.36% of total loans and leases, at September 30, 2019. Loans acquired in the Merger were recorded at their fair value as of the merger date without a carryover of the related allowance, and as of September 30, 2019, the determination was made that no allowance was needed for this population of loans. Allowance for loan and lease losses and the credit discount on acquired loans was $297.0 million, or 0.89% of total loans and leases at September 30, 2019.

Nonaccrual loans and leases Nonaccrual loans and leases were $181.8 million at September 30, 2019 and represented 0.54% of total loans and leases.

Balance Sheet

Loans and leases Loans and leases were $33.5 billion at September 30, 2019, compared to $19.2 billion at June 30, 2019. Loan and lease balances were impacted by the addition of Chemical's $15.7 billion loan and lease portfolio, partially offset by the transfer of the Legacy TCF auto finance portfolio to held-for-sale ($1.2 billion at September 30, 2019).

Investment securities The investment securities portfolio was $5.7 billion at September 30, 2019, compared to $3.3 billion at June 30, 2019. Portfolio balances were impacted by the addition of Chemical's $3.8 billion investment securities portfolio and the subsequent sale of $1.6 billion of these investment securities during the third quarter of 2019.

Deposits Deposits were $35.3 billion at September 30, 2019, compared to $19.1 billion at June 30, 2019. Deposit balances were impacted by the addition of $16.8 billion of Chemical deposits during the third quarter of 2019.

Capital The common equity Tier 1 capital ratio was 10.88% at September 30, 2019.

TCF's board of directors approved an authorization to repurchase up to $150 million of TCF common stock.

TCF's board of directors also declared a regular quarterly cash dividend of $0.35 per common share payable on December 2, 2019 to shareholders of record at the close of business on November 15, 2019. In addition, the board of directors declared a quarterly cash dividend of $0.35625 per depositary share payable on December 2, 2019 to shareholders of record of the depositary shares, representing a 1/1,000th interest in a share of the 5.70% Series C Non-Cumulative Perpetual Preferred Stock, at the close of business on November 15, 2019.

Conference Call Details TCF will host a conference call to discuss third quarter 2019 results on Tuesday, October 29, 2019 at 10:00 a.m. Eastern Daylight Time. The conference call will be available via a live webcast on the Investor Relations section of TCF's website, ir.tcfbank.com, and archived for replay. The conference call can also be accessed by dialing (844) 512-2926 and entering access code 3865677. To listen to the replay via phone, please dial (877) 344-7529 and enter access code 10135947. The replay begins approximately one hour after the call is completed on Tuesday, October 29, 2019 and will be available through Tuesday, November 5, 2019.

TCF Financial Corporation (NASDAQ: TCF) is a Detroit, Michigan-based financial holding company with $46 billion in total assets and a top 10 deposit market share in the Midwest at September 30, 2019. TCF’s primary banking subsidiary, TCF National Bank, is a premier Midwest bank offering consumer and commercial banking, trust and wealth management, and specialty leasing and lending products and services to consumers, small businesses and commercial clients. TCF has more than 500 branches primarily located in Michigan, Illinois and Minnesota with additional locations in Arizona, Colorado, Indiana, Ohio, South Dakota and Wisconsin. TCF also conducts business across all 50 states and Canada through its specialty lending and leasing businesses. To learn more about TCF, visit 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 Corporation's businesses and their respective markets, such as projections of future performance, targets, guidance, statements of the Corporation's plans and objectives, forecasts of market trends and other matters are forward-looking statements based on the Corporation'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 Corporation'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 Corporation'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 ROAA, adjusted ROACE, ROATCE, adjusted ROATCE, adjusted efficiency ratio, 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 Corporation's capital and ability to withstand unexpected market or economic conditions and to assess the performance of the Corporation 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 non-core items 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 corporation, 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 shareholders.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Financial Condition (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Change From

(Dollars in thousands)

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

Jun. 30, 2019

 

Sep. 30, 2018

2019

 

2019

 

2019

 

2018

 

2018

 

$

 

%

 

$

 

%

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

586,060

 

$

294,566

 

$

283,659

 

$

279,267

 

$

306,834

 

$

291,494

 

99.0

%

$

279,226

 

91.0

%

Interest-bearing deposits with other banks

736,954

 

260,705

 

180,163

 

307,790

 

263,134

 

476,249

 

182.7

 

473,820

 

180.1

 

Total cash and cash equivalents

1,323,014

 

555,271

 

463,822

 

587,057

 

569,968

 

767,743

 

138.3

 

753,046

 

132.1

 

Federal Home Loan Bank and Federal Reserve Bank stocks, at cost

290,238

 

105,659

 

103,644

 

91,654

 

80,672

 

184,579

 

174.7

209,566

 

N.M.

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carried at fair value

5,579,835

 

3,109,803

 

2,945,342

 

2,470,065

 

2,379,546

 

2,470,032

 

79.4

 

3,200,289

 

134.5

 

Held-to-maturity, at amortized cost

144,000

 

144,919

 

148,024

 

148,852

 

152,881

 

(919)

 

(0.6)

 

(8,881)

 

(5.8)

 

Total investment securities

5,723,835

 

3,254,722

 

3,093,366

 

2,618,917

 

2,532,427

 

2,469,113

 

75.9

 

3,191,408

 

126.0

 

Loans and leases held-for-sale

1,436,069

 

74,410

 

64,468

 

90,664

 

114,198

 

1,361,659

 

N.M.

1,321,871

 

N.M.

Loans and leases

33,510,752

 

19,185,137

 

19,384,210

 

19,073,020

 

18,422,088

 

14,325,615

 

74.7

 

15,088,664

 

81.9

 

Allowance for loan and lease losses

(121,218)

 

(146,503)

 

(147,972)

 

(157,446)

 

(160,621)

 

25,285

 

17.3

 

39,403

 

24.5

 

Loans and leases, net

33,389,534

 

19,038,634

 

19,236,238

 

18,915,574

 

18,261,467

 

14,350,900

 

75.4

 

15,128,067

 

82.8

 

Premises and equipment, net

554,194

 

432,751

 

429,711

 

427,534

 

429,648

 

121,443

 

28.1

 

124,546

 

29.0

 

Goodwill

1,265,111

 

154,757

 

154,757

 

154,757

 

154,757

 

1,110,354

 

N.M.

1,110,354

 

N.M.

Other intangible assets, net

215,910

 

18,885

 

19,684

 

20,496

 

21,339

 

197,025

 

N.M.

194,571

 

N.M.

Loan servicing rights

55,301

 

19

 

20

 

23

 

25

 

55,282

 

N.M.

55,276

 

N.M.

Other assets

1,439,305

 

991,722

 

853,005

 

792,936

 

740,284

 

447,583

 

45.1

 

699,021

 

94.4

 

Total assets

$

45,692,511

 

$

24,626,830

 

$

24,418,715

 

$

23,699,612

 

$

22,904,785

 

$

21,065,681

 

85.5

 

$

22,787,726

 

99.5

 

LIABILITIES AND EQUITY:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing

$

7,979,900

 

$

4,062,912

 

$

4,104,652

 

$

3,936,155

 

$

3,974,333

 

$

3,916,988

 

96.4

%

$

4,005,567

 

100.8

%

Interest-bearing

27,306,174

 

15,049,475

 

14,919,459

 

14,967,531

 

14,522,178

 

12,256,699

 

81.4

 

12,783,996

 

88.0

 

Total deposits

35,286,074

 

19,112,387

 

19,024,111

 

18,903,686

 

18,496,511

 

16,173,687

 

84.6

 

16,789,563

 

90.8

 

Short-term borrowings

2,607,300

 

350,764

 

355,992

 

 

2,324

 

2,256,536

 

N.M.

2,604,976

 

N.M.

Long-term borrowings

860,482

 

1,617,531

 

1,411,426

 

1,449,472

 

1,171,541

 

(757,049)

 

(46.8)

 

(311,059)

 

(26.6)

 

Other liabilities

1,245,238

 

835,630

 

981,341

 

790,194

 

706,397

 

409,608

 

49.0

 

538,841

 

76.3

 

Total liabilities

39,999,094

 

21,916,312

 

21,772,870

 

21,143,352

 

20,376,773

 

18,082,782

 

82.5

 

19,622,321

 

96.3

 

Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

169,302

 

169,302

 

169,302

 

169,302

 

169,302

 

 

 

 

 

Common stock

153,571

 

87,944

 

88,063

 

88,198

 

88,201

 

65,627

 

74.6

 

65,370

 

74.1

 

Additional paid-in capital

3,478,159

 

781,788

 

789,467

 

798,627

 

795,856

 

2,696,371

 

N.M.

2,682,303

 

N.M.

Retained earnings

1,840,214

 

1,874,308

 

1,810,701

 

1,766,994

 

1,708,410

 

(34,094)

 

(1.8)

 

131,804

 

7.7

 

Accumulated other comprehensive income (loss)

56,228

 

37,334

 

5,481

 

(33,138)

 

(65,259)

 

18,894

 

50.6

121,487

 

N.M.

Treasury stock at cost and other

(27,370)

 

(265,016)

 

(246,621)

 

(252,182)

 

(189,652)

 

237,646

 

89.7

 

162,282

 

85.6

 

Total TCF Financial Corporation shareholders' equity

5,670,104

 

2,685,660

 

2,616,393

 

2,537,801

 

2,506,858

 

2,984,444

 

111.1

 

3,163,246

 

126.2

 

Non-controlling interest

23,313

 

24,858

 

29,452

 

18,459

 

21,154

 

(1,545)

 

(6.2)

 

2,159

 

10.2

 

Total equity

5,693,417

 

2,710,518

 

2,645,845

 

2,556,260

 

2,528,012

 

2,982,899

 

110.0

 

3,165,405

 

125.2

 

Total liabilities and equity

$

45,692,511

 

$

24,626,830

 

$

24,418,715

 

$

23,699,612

 

$

22,904,785

 

$

21,065,681

 

85.5

 

$

22,787,726

 

99.5

 

N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

Change From

(Dollars in thousands)

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

Jun. 30, 2019

 

Sep. 30, 2018

2019

 

2019

 

2019

 

2018

 

2018

 

$

 

%

 

$

 

%

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans and leases

$

417,370

 

$

283,282

 

$

283,238

 

$

275,200

 

$

269,167

 

$

134,088

 

47.3

%

 

$

148,203

 

55.1

%

Interest on investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

31,038

 

22,041

 

16,666

 

13,915

 

11,498

 

8,997

 

40.8

 

 

19,540

 

169.9

 

Tax-exempt

3,385

 

1,208

 

2,684

 

4,147

 

4,328

 

2,177

 

180.2

 

 

(943)

 

(21.8)

 

Interest on loans held-for-sale

1,408

 

599

 

825

 

1,405

 

3,625

 

809

 

135.1

 

 

(2,217)

 

(61.2)

 

Interest on other earning assets

6,607

 

3,651

 

3,481

 

3,242

 

3,089

 

2,956

 

81.0

 

 

3,518

 

113.9

 

Total interest income

459,808

 

310,781

 

306,894

 

297,909

 

291,707

 

149,027

 

48.0

 

 

168,101

 

57.6

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

70,900

 

40,646

 

37,608

 

33,462

 

27,479

 

30,254

 

74.4

 

 

43,421

 

158.0

 

Interest on borrowings

17,115

 

16,078

 

14,857

 

11,294

 

10,726

 

1,037

 

6.4

 

 

6,389

 

59.6

 

Total interest expense

88,015

 

56,724

 

52,465

 

44,756

 

38,205

 

31,291

 

55.2

 

 

49,810

 

130.4

 

Net interest income

371,793

 

254,057

 

254,429

 

253,153

 

253,502

 

117,736

 

46.3

 

 

118,291

 

46.7

 

Provision for credit losses

27,188

 

13,569

 

10,122

 

18,894

 

2,270

 

13,619

 

100.4

 

 

24,918

 

N.M.

Net interest income after provision for credit losses

344,605

 

240,488

 

244,307

 

234,259

 

251,232

 

104,117

 

43.3

 

 

93,373

 

37.2

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees and service charges on deposit accounts

34,384

 

27,842

 

26,278

 

29,539

 

29,175

 

6,542

 

23.5

 

 

5,209

 

17.9

 

Leasing revenue

39,590

 

39,277

 

38,165

 

51,602

 

41,944

 

313

 

0.8

 

 

(2,354)

 

(5.6)

 

Wealth management revenue

4,241

 

 

 

 

 

4,241

 

N.M.

 

4,241

 

N.M.

Card and ATM revenue

23,315

 

20,496

 

18,659

 

20,093

 

20,074

 

2,819

 

13.8

 

 

3,241

 

16.1

 

Net (loss) gain on sales of loans and leases

(5,984)

 

11,141

 

8,217

 

8,795

 

8,502

 

(17,125)

 

N.M.

 

(14,486)

 

N.M.

Servicing fee revenue

5,121

 

4,523

 

5,110

 

5,523

 

6,032

 

598

 

13.2

 

 

(911)

 

(15.1)

 

Net gains on investment securities

5,900

 

1,066

 

451

 

167

 

94

 

4,834

 

N.M.

 

5,806

 

N.M.

Other

(12,309)

 

5,373

 

6,624

 

8,149

 

6,243

 

(17,682)

 

N.M.

 

(18,552)

 

N.M.

Total noninterest income

94,258

 

109,718

 

103,504

 

123,868

 

112,064

 

(15,460)

 

(14.1)

 

 

(17,806)

 

(15.9)

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

155,745

 

116,266

 

123,942

 

130,022

 

124,996

 

39,479

 

34.0

 

 

30,749

 

24.6

 

Occupancy and equipment

49,229

 

41,850

 

41,710

 

42,277

 

42,337

 

7,379

 

17.6

 

 

6,892

 

16.3

 

Lease financing equipment depreciation

19,408

 

19,133

 

19,256

 

19,085

 

19,525

 

275

 

1.4

 

 

(117)

 

(0.6)

 

Net foreclosed real estate and repossessed assets

2,203

 

2,448

 

4,630

 

4,396

 

3,880

 

(245)

 

(10.0)

 

 

(1,677)

 

(43.2)

 

Merger-related expenses

111,259

 

4,226

 

9,458

 

 

 

107,033

 

N.M.

 

111,259

 

N.M.

Other

87,776

 

52,926

 

54,079

 

54,178

 

55,685

 

34,850

 

65.8

 

 

32,091

 

57.6

 

Total noninterest expense

425,620

 

236,849

 

253,075

 

249,958

 

246,423

 

188,771

 

79.7

 

 

179,197

 

72.7

 

Income before income tax expense

13,243

 

113,357

 

94,736

 

108,169

 

116,873

 

(100,114)

 

(88.3)

 

 

(103,630)

 

(88.7)

 

Income tax (benefit) expense

(11,735)

 

19,314

 

21,287

 

20,013

 

28,034

 

(31,049)

 

N.M.

 

(39,769)

 

N.M.

Income after income tax expense

24,978

 

94,043

 

73,449

 

88,156

 

88,839

 

(69,065)

 

(73.4)

 

 

(63,861)

 

(71.9)

 

Income attributable to non-controlling interest

2,830

 

3,616

 

2,955

 

2,504

 

2,643

 

(786)

 

(21.7)

 

 

187

 

7.1

 

Net income attributable to TCF Financial Corporation

22,148

 

90,427

 

70,494

 

85,652

 

86,196

 

(68,279)

 

(75.5)

 

 

(64,048)

 

(74.3)

 

Preferred stock dividends

2,494

 

2,494

 

2,493

 

2,494

 

2,494

 

 

 

 

 

 

Net income available to common shareholders

$

19,654

 

$

87,933

 

$

68,001

 

$

83,158

 

$

83,702

 

$

(68,279)

 

(77.6)

 

 

$

(64,048)

 

(76.5)

 

N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income (Unaudited)

 

 

 

 

 

 

 

 

 

 

Nine Months Ended
September 30,

 

Change

(Dollars in thousands, except per share data)

2019

 

2018

 

$

 

%

 

Interest income:

 

 

 

 

 

 

 

 

Interest and fees on loans and leases

$

983,890

 

$

806,935

 

$

176,955

 

21.9

 

%

Interest on investment securities:

 

 

 

 

 

 

 

 

Taxable

69,745

 

27,491

 

42,254

 

153.7

 

 

Tax-exempt

7,277

 

12,991

 

(5,714)

 

(44.0)

 

 

Interest on loans held-for-sale

2,832

 

5,281

 

(2,449)

 

(46.4)

 

 

Interest on other earning assets

13,739

 

8,722

 

5,017

 

57.5

 

 

Total interest income

1,077,483

 

861,420

 

216,063

 

25.1

 

 

Interest expense:

 

 

 

 

 

 

 

 

Interest on deposits

149,154

 

74,228

 

74,926

 

100.9

 

 

Interest on borrowings

48,050

 

31,850

 

16,200

 

50.9

 

 

Total interest expense

197,204

 

106,078

 

91,126

 

85.9

 

 

Net interest income

880,279

 

755,342

 

124,937

 

16.5

 

 

Provision for credit losses

50,879

 

27,874

 

23,005

 

82.5

 

 

Net interest income after provision for credit losses

829,400

 

727,468

 

101,932

 

14.0

 

 

Noninterest income:

 

 

 

 

 

 

 

 

Fees and service charges on deposit accounts

88,504

 

83,703

 

4,801

 

5.7

 

 

Leasing revenue

117,032

 

121,001

 

(3,969)

 

(3.3)

 

 

Wealth management revenue

4,241

 

 

4,241

 

N.M.

 

Card and ATM revenue

62,470

 

58,313

 

4,157

 

7.1

 

 

Net gains on sales of loans and leases

13,374

 

24,900

 

(11,526)

 

(46.3)

 

 

Servicing fee revenue

14,754

 

21,811

 

(7,057)

 

(32.4)

 

 

Net gains (losses) on investment securities

7,417

 

181

 

7,236

 

N.M.

 

Other

(312)

 

20,620

 

(20,932)

 

N.M.

 

Total noninterest income

307,480

 

330,529

 

(23,049)

 

(7.0)

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

Compensation and employee benefits

395,953

 

372,174

 

23,779

 

6.4

 

 

Occupancy and equipment

132,789

 

123,562

 

9,227

 

7.5

 

 

Lease financing equipment depreciation

57,797

 

54,744

 

3,053

 

5.6

 

 

Net foreclosed real estate and repossessed assets

9,281

 

12,654

 

(3,373)

 

(26.7)

 

 

Merger-related expenses

124,943

 

 

124,943

 

N.M.

 

Other

194,781

 

201,308

 

(6,527)

 

(3.2)

 

 

Total noninterest expense

915,544

 

764,442

 

151,102

 

19.8

 

 

Income before income tax expense

221,336

 

293,555

 

(72,219)

 

(24.6)

 

 

Income tax expense

28,866

 

66,083

 

(37,217)

 

(56.3)

 

 

Income after income tax expense

192,470

 

227,472

 

(35,002)

 

(15.4)

 

 

Income attributable to non-controlling interest

9,401

 

8,766

 

635

 

7.2

 

 

Net income attributable to TCF Financial Corporation

183,069

 

218,706

 

(35,637)

 

(16.3)

 

 

Preferred stock dividends

7,481

 

9,094

 

(1,613)

 

(17.7)

 

 

Impact of preferred stock redemption

 

3,481

 

(3,481)

 

(100.0)

 

 

Net income available to common shareholders

$

175,588

 

$

206,131

 

$

(30,543)

 

(14.8)

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

Basic

$

1.79

 

$

2.44

 

$

(0.65)

 

(26.6)

 

%

Diluted

1.79

 

2.43

 

(0.64)

 

(26.3)

 

 

N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Average Balance Sheets, Yields and Rates (Unaudited)

 

Three Months Ended

 

September 30, 2019

 

June 30, 2019

 

September 30, 2018

 

Average

 

 

 

Yields &

 

Average

 

 

 

Yields &

 

Average

 

 

 

Yields &

(Dollars in thousands)

Balance

 

Interest(1)

 

Rates(1)(2)

 

Balance

 

Interest(1)

 

Rates(1)(2)

 

Balance

 

Interest(1)

 

Rates(1)(2)

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Home Loan Bank and Federal Reserve Bank stocks

$

230,767

 

$

806

 

1.39

%

 

$

112,118

 

$

1,093

 

3.91

%

 

$

87,485

 

$

1,057

 

4.81

%

Investment securities held-to-maturity

143,078

 

602

 

1.68

 

 

146,296

 

924

 

2.53

 

 

153,652

 

988

 

2.57

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

4,232,878

 

30,436

 

2.88

 

 

2,711,984

 

21,117

 

3.11

 

 

1,525,665

 

10,511

 

2.76

 

Tax-exempt(3)

643,576

 

4,283

 

2.66

 

 

222,534

 

1,530

 

2.75

 

 

823,854

 

5,478

 

2.66

 

Loans and leases held-for-sale

118,482

 

1,408

 

4.74

 

 

40,835

 

599

 

5.88

 

 

216,669

 

3,625

 

6.64

 

Loans and leases(1)(3)(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

9,290,978

 

146,865

 

6.25

 

 

6,683,060

 

109,679

 

6.56

 

 

5,956,211

 

94,971

 

6.33

 

Commercial real estate

6,964,643

 

97,042

 

5.45

 

 

3,069,969

 

39,204

 

5.05

 

 

2,840,005

 

35,214

 

4.85

 

Lease financing

2,570,567

 

32,833

 

5.11

 

 

2,565,175

 

32,899

 

5.13

 

 

2,473,793

 

32,110

 

5.19

 

Residential mortgage

4,853,627

 

51,511

 

4.23

 

 

2,337,818

 

28,665

 

5.91

 

 

1,691,691

 

22,642

 

5.32

 

Consumer installment

2,389,830

 

34,543

 

5.73

 

 

1,586,633

 

22,262

 

3.64

 

 

2,449,414

 

34,439

 

5.58

 

Home equity

3,433,830

 

56,166

 

6.49

 

 

2,997,050

 

51,588

 

5.48

 

 

3,005,196

 

50,753

 

6.70

 

Total loans and leases(1)(3)(4)

29,503,475

 

418,960

 

5.62

 

 

19,239,705

 

284,297

 

5.91

 

 

18,416,310

 

270,129

 

5.82

 

Interest-bearing deposits with banks and other

933,014

 

5,800

 

2.44

 

 

280,075

 

2,557

 

3.64

 

 

218,771

 

2,031

 

3.69

 

Total interest-earning assets

35,805,270

 

462,295

 

5.11

 

 

22,753,547

 

312,117

 

5.48

 

 

21,442,406

 

293,819

 

5.44

 

Other assets

3,289,096

 

 

 

 

 

1,730,275

 

 

 

 

 

1,461,998

 

 

 

 

Total assets

$

39,094,366

 

 

 

 

 

$

24,483,822

 

 

 

 

 

$

22,904,404

 

 

 

 

LIABILITIES AND EQUITY:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest bearing deposits

$

6,564,195

 

 

 

 

 

$

3,980,811

 

 

 

 

 

$

3,874,421

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

4,805,843

 

5,520

 

0.46

%

 

2,479,814

 

440

 

0.07

%

 

2,427,288

 

234

 

0.04

%

Savings

7,676,165

 

14,110

 

0.73

 

 

6,452,510

 

12,314

 

0.77

 

 

5,620,161

 

4,994

 

0.35

 

Money market

3,490,922

 

13,037

 

1.48

 

 

1,430,556

 

4,588

 

1.29

 

 

1,496,223

 

2,941

 

0.78

 

Certificates of deposit

7,320,720

 

38,233

 

2.07

 

 

4,527,822

 

23,304

 

2.06

 

 

4,868,286

 

19,310

 

1.57

 

Total interest-bearing deposits

23,293,650

 

70,900

 

1.21

 

 

14,890,702

 

40,646

 

1.09

 

 

14,411,958

 

27,479

 

0.76

 

Total deposits

29,857,845

 

70,900

 

0.94

 

 

18,871,513

 

40,646

 

0.86

 

 

18,286,379

 

27,479

 

0.60

 

Borrowings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

1,884,228

 

5,345

 

1.11

 

 

321,043

 

2,131

 

2.63

 

 

3,357

 

21

 

2.44

 

Long-term borrowings

1,472,150

 

11,769

 

3.17

 

 

1,657,527

 

13,946

 

3.34

 

 

1,351,585

 

10,705

 

3.13

 

Total borrowings

3,356,378

 

17,114

 

2.01

 

 

1,978,570

 

16,077

 

3.23

 

 

1,354,942

 

10,726

 

3.13

 

Total interest-bearing liabilities

26,650,028

 

88,014

 

1.31

 

 

16,869,272

 

56,723

 

1.34

 

 

15,766,900

 

38,205

 

0.96

 

Total deposits and borrowings

33,214,223

 

88,014

 

1.05

 

 

20,850,083

 

56,723

 

1.09

 

 

19,641,321

 

38,205

 

0.77

 

Accrued expenses and other liabilities

1,197,014

 

 

 

 

 

969,723

 

 

 

 

 

751,100

 

 

 

 

Total liabilities

34,411,237

 

 

 

 

 

21,819,806

 

 

 

 

 

20,392,421

 

 

 

 

Total TCF Financial Corporation shareholders' equity

4,657,613

 

 

 

 

 

2,634,386

 

 

 

 

 

2,488,435

 

 

 

 

Non-controlling interest in subsidiaries

25,516

 

 

 

 

 

29,630

 

 

 

 

 

23,548

 

 

 

 

Total equity

4,683,129

 

 

 

 

 

2,664,016

 

 

 

 

 

2,511,983

 

 

 

 

Total liabilities and equity

$

39,094,366

 

 

 

 

 

$

24,483,822

 

 

 

 

 

$

22,904,404

 

 

 

 

Net interest spread (FTE)

 

 

 

 

4.06

%

 

 

 

 

 

4.39

%

 

 

 

 

 

4.67

%

Net interest income(FTE) and net interest margin(FTE)

 

 

$

374,281

 

4.14

%

 

 

 

$

255,394

 

4.49

%

 

 

 

$

255,614

 

4.73

%

Reconciliation to Reported Net Interest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (FTE)

 

 

$

374,281

 

 

 

 

 

$

255,394

 

 

 

 

 

$

255,614

 

 

Adjustments for taxable equivalent interest(1)(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and leases

 

 

(1,590)

 

 

 

 

 

(1,015)

 

 

 

 

 

(962)

 

 

Tax-exempt investment securities

 

 

(898)

 

 

 

 

 

(322)

 

 

 

 

 

(1,150)

 

 

Total FTE adjustments

 

 

(2,488)

 

 

 

 

 

(1,337)

 

 

 

 

 

(2,112)

 

 

Net interest income (GAAP)

 

 

$

371,793

 

 

 

 

 

$

254,057

 

 

 

 

 

$

253,502

 

 

Net interest margin (GAAP)

 

 

4.12

%

 

 

 

 

 

4.48

%

 

 

 

 

 

4.69

%

 

 

(1) Interest and yields are presented on a fully tax-equivalent basis.

(2) Annualized

(3) The yield on tax-exempt loans, leases and investment 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 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:

 

 

 

 

 

 

 

 

 

 

 

Federal Home Loan Bank and Federal Reserve Bank stocks

$

149,801

 

$

2,860

 

2.55

%

 

$

90,600

 

$

2,698

 

3.98

%

Investment securities held-to-maturity

145,627

 

2,061

 

1.89

 

 

156,170

 

3,005

 

2.57

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

Taxable

3,029,754

 

67,684

 

2.98

 

 

1,258,708

 

24,487

 

2.59

 

Tax-exempt(3)

461,499

 

9,210

 

2.66

 

 

824,551

 

16,444

 

2.66

 

Loans and leases held-for-sale

71,739

 

2,832

 

5.27

 

 

108,992

 

5,281

 

6.48

 

Loans and leases(1)(3)(4)

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

7,499,975

 

363,260

 

6.45

 

 

6,189,854

 

288,522

 

6.21

 

Commercial real estate

4,332,238

 

173,983

 

5.30

 

 

2,800,912

 

99,940

 

4.71

 

Lease financing

2,554,521

 

98,116

 

5.12

 

 

2,453,344

 

92,201

 

5.01

 

Residential mortgage

3,188,294

 

109,634

 

4.59

 

 

1,731,913

 

69,424

 

5.36

 

Consumer installment

1,945,059

 

82,305

 

5.66

 

 

2,729,135

 

112,454

 

5.51

 

Home equity

3,161,083

 

160,206

 

6.78

 

 

3,013,433

 

147,210

 

6.53

 

Total loans and leases(1)(3)(4)

22,681,170

 

987,504

 

5.80

 

 

18,918,591

 

809,751

 

5.71

 

Interest-bearing deposits with banks and other

494,007

 

10,878

 

2.92

 

 

225,203

 

6,023

 

3.58

 

Total interest-earning assets

27,033,597

 

1,083,029

 

5.33

 

 

21,582,815

 

867,689

 

5.36

 

Other assets

2,249,678

 

 

 

 

 

1,448,293

 

 

 

 

Total assets

$

29,283,275

 

 

 

 

 

$

23,031,108

 

 

 

 

LIABILITIES AND EQUITY:

 

 

 

 

 

 

 

 

 

 

 

Noninterest bearing deposits

$

4,831,271

 

 

 

 

 

$

3,833,543

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

Checking

3,256,409

 

6,347

 

0.26

%

 

2,449,723

 

466

 

0.03

%

Savings

6,799,432

 

37,094

 

0.73

 

 

5,520,287

 

11,895

 

0.29

 

Money market

2,144,697

 

22,078

 

1.38

 

 

1,588,210

 

7,970

 

0.67

 

Certificates of deposit

5,500,105

 

83,635

 

2.03

 

 

4,924,804

 

53,897

 

1.46

 

Total interest-bearing deposits

17,700,643

 

149,154

 

1.13

 

 

14,483,024

 

74,228

 

0.69

 

Total deposits

22,531,914

 

149,154

 

0.88

 

 

18,316,567

 

74,228

 

0.54

 

Borrowings:

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

838,750

 

9,433

 

1.48

 

 

3,473

 

58

 

2.23

 

Long-term borrowings

1,543,398

 

38,616

 

3.32

 

 

1,435,088

 

31,792

 

2.94

 

Total borrowings

2,382,148

 

48,049

 

2.67

 

 

1,438,561

 

31,850

 

2.93

 

Total interest-bearing liabilities

20,082,791

 

197,203

 

1.31

 

 

15,921,585

 

106,078

 

0.89

 

Total deposits and borrowings

24,914,062

 

197,203

 

1.06

 

 

19,755,128

 

106,078

 

0.72

 

Accrued expenses and other liabilities

1,052,709

 

 

 

 

 

741,222

 

 

 

 

Total liabilities

25,966,771

 

 

 

 

 

20,496,350

 

 

 

 

Total TCF Financial Corporation shareholders' equity

3,289,946

 

 

 

 

 

2,509,625

 

 

 

 

Non-controlling interest in subsidiaries

26,558

 

 

 

 

 

25,133

 

 

 

 

Total equity

3,316,504

 

 

 

 

 

2,534,758

 

 

 

 

Total liabilities and equity

$

29,283,275

 

 

 

 

 

$

23,031,108

 

 

 

 

Net interest spread (FTE)

 

 

 

 

4.27

 

 

 

 

 

 

4.64

 

Net interest income (FTE) and net interest margin (FTE)

 

 

$

885,826

 

4.36

 

 

 

 

$

761,611

 

4.70

 

Reconciliation to Reported Net Interest Income

 

 

 

 

 

 

 

 

 

 

 

Net interest income (FTE)

 

 

$

885,826

 

 

 

 

 

$

761,611

 

 

Adjustments for taxable equivalent interest(1)(3)

 

 

 

 

 

 

 

 

 

 

 

Loans

 

 

(3,614)

 

 

 

 

 

(2,816)

 

 

Tax-exempt investment securities

 

 

(1,933)

 

 

 

 

 

(3,453)

 

 

Total FTE adjustments

 

 

(5,547)

 

 

 

 

 

(6,269)

 

 

Net interest income (GAAP)

 

 

$

880,279

 

 

 

 

 

$

755,342

 

 

Net interest margin (GAAP)

 

 

4.35

%

 

 

 

 

 

4.68

%

 

 

(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

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

Jun. 30, 2019

 

Sep. 30, 2018

(Dollars in thousands)

2019

 

2019

 

2019

 

2018

 

2018

 

$

 

%

 

$

 

%

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Home Loan Bank and Federal Reserve Bank stocks

$

230,767

 

$

112,118

 

$

105,135

 

$

87,321

 

$

87,485

 

$

118,649

 

105.8

%

 

$

143,282

 

163.8

%

Investment securities held-to-maturity

143,078

 

146,296

 

147,556

 

150,016

 

153,652

 

(3,218)

 

(2.2)

 

 

(10,574)

 

(6.9)

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

4,232,878

 

2,711,984

 

2,121,196

 

1,779,654

 

1,525,665

 

1,520,894

 

56.1

 

 

2,707,213

 

177.4

 

Tax-exempt

643,576

 

222,534

 

516,995

 

788,806

 

823,854

 

421,042

 

189.2

 

 

(180,278)

 

(21.9)

 

Loans and leases held-for-sale

118,482

 

40,835

 

55,204

 

86,169

 

216,669

 

77,647

 

190.1

 

 

(98,187)

 

(45.3)

 

Loans and leases(1) :

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

9,290,978

 

6,683,060

 

6,495,163

 

6,116,369

 

5,956,211

 

2,607,918

 

39.0

 

 

3,334,767

 

56.0

 

Commercial real estate

6,964,643

 

3,069,969

 

2,917,631

 

2,795,403

 

2,840,005

 

3,894,674

 

126.9

 

 

4,124,638

 

145.2

 

Lease financing

2,570,567

 

2,565,175

 

2,527,346

 

2,479,045

 

2,473,793

 

5,392

 

0.2

 

 

96,774

 

3.9

 

Residential mortgage

4,853,627

 

2,337,818

 

2,345,881

 

1,957,323

 

1,691,691

 

2,515,809

 

107.6

 

 

3,161,936

 

186.9

 

Consumer installment

2,389,830

 

1,586,633

 

1,852,813

 

2,134,568

 

2,449,414

 

803,197

 

50.6

 

 

(59,584)

 

(2.4)

 

Home equity

3,433,830

 

2,997,050

 

3,048,128

 

3,072,697

 

3,005,196

 

436,780

 

14.6

 

 

428,634

 

14.3

 

Total loans and leases(1)

29,503,475

 

19,239,705

 

19,186,962

 

18,555,405

 

18,416,310

 

10,263,770

 

53.3

 

 

11,087,165

 

60.2

 

Interest-bearing deposits with banks and other

933,014

 

280,075

 

261,556

 

243,038

 

218,771

 

652,939

 

N.M.

 

714,243

 

N.M.

Total interest-earning assets

35,805,270

 

22,753,547

 

22,394,604

 

21,690,409

 

21,442,406

 

13,051,723

 

57.4

 

 

14,362,864

 

67.0

 

Other assets

3,289,096

 

1,730,275

 

1,712,337

 

1,463,844

 

1,461,998

 

1,558,821

 

90.1

 

 

1,827,098

 

125.0

 

Total assets

$

39,094,366

 

$

24,483,822

 

$

24,106,941

 

$

23,154,253

 

$

22,904,404

 

$

14,610,544

 

59.7

 

 

$

16,189,962

 

70.7

 

LIABILITIES AND EQUITY:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest bearing deposits

$

6,564,195

 

$

3,980,811

 

$

3,919,746

 

$

3,873,023

 

$

3,874,421

 

$

2,583,384

 

64.9

%

 

$

2,689,774

 

69.4

%

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

4,805,843

 

2,479,814

 

2,457,767

 

2,403,370

 

2,427,288

 

2,326,029

 

93.8

 

 

2,378,555

 

98.0

 

Savings

7,676,165

 

6,452,510

 

6,253,992

 

5,922,724

 

5,620,161

 

1,223,655

 

19.0

 

 

2,056,004

 

36.6

 

Money market

3,490,922

 

1,430,556

 

1,490,631

 

1,449,531

 

1,496,223

 

2,060,366

 

144.0

 

 

1,994,699

 

133.3

 

Certificates of deposit

7,320,720

 

4,527,822

 

4,622,120

 

4,818,211

 

4,868,286

 

2,792,898

 

61.7

 

 

2,452,434

 

50.4

 

Total interest-bearing deposits

23,293,650

 

14,890,702

 

14,824,510

 

14,593,836

 

14,411,958

 

8,402,948

 

56.4

 

 

8,881,692

 

61.6

 

Total deposits

29,857,845

 

18,871,513

 

18,744,256

 

18,466,859

 

18,286,379

 

10,986,332

 

58.2

 

 

11,571,466

 

63.3

 

Borrowings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

1,884,228

 

321,043

 

293,499

 

2,738

 

3,357

 

1,563,185

 

N.M.

 

1,880,871

 

N.M.

Long-term borrowings

1,472,150

 

1,657,527

 

1,500,832

 

1,344,228

 

1,351,585

 

(185,377)

 

(11.2)

 

 

120,565

 

8.9

 

Total borrowings

3,356,378

 

1,978,570

 

1,794,331

 

1,346,966

 

1,354,942

 

1,377,808

 

69.6

 

 

2,001,436

 

147.7

 

Total interest-bearing liabilities

26,650,028

 

16,869,272

 

16,618,841

 

15,940,802

 

15,766,900

 

9,780,756

 

58.0

 

 

10,883,128

 

69.0

 

Total deposits and borrowings

33,214,223

 

20,850,083

 

20,538,587

 

19,813,825

 

19,641,321

 

12,364,140

 

59.3

 

 

13,572,902

 

69.1

 

Accrued expenses and other liabilities

1,197,014

 

969,723

 

989,104

 

822,558

 

751,100

 

227,291

 

23.4

 

 

445,914

 

59.4

 

Total liabilities

34,411,237

 

21,819,806

 

21,527,691

 

20,636,383

 

20,392,421

 

12,591,431

 

57.7

 

 

14,018,816

 

68.7

 

Total TCF Financial Corporation shareholders' equity

4,657,613

 

2,634,386

 

2,554,729

 

2,495,952

 

2,488,435

 

2,023,227

 

76.8

 

 

2,169,178

 

87.2

 

Non-controlling interest in subsidiaries

25,516

 

29,630

 

24,521

 

21,918

 

23,548

 

(4,114)

 

(13.9)

 

 

1,968

 

8.4

 

Total equity

4,683,129

 

2,664,016

 

2,579,250

 

2,517,870

 

2,511,983

 

2,019,113

 

75.8

 

 

2,171,146

 

86.4

 

Total liabilities and equity

$

39,094,366

 

$

24,483,822

 

$

24,106,941

 

$

23,154,253

 

$

22,904,404

 

$

14,610,544

 

59.7

 

 

$

16,189,962

 

70.7

 

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

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Sep. 30,

 

2019

 

2019

 

2019

 

2018

 

2018

 

2019

 

2018

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

Federal Home Loan Bank and Federal Reserve Bank stocks

1.39

%

 

3.91

%

 

3.70

%

 

4.19

%

 

4.81

%

 

(252)

bps

(342)

bps

Investment securities held-to-maturity

1.68

 

 

2.53

 

 

1.45

 

 

2.58

 

 

2.57

 

 

(85)

 

(89)

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

2.88

 

 

3.11

 

 

3.04

 

 

2.91

 

 

2.76

 

 

(23)

 

12

 

Tax-exempt(3)

2.66

 

 

2.75

 

 

2.63

 

 

2.66

 

 

2.66

 

 

(9)

 

 

Loans and leases held-for-sale

4.74

 

 

5.88

 

 

6.05

 

 

6.48

 

 

6.64

 

 

(114)

 

(190)

 

Loans and leases(1)(3):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

6.25

 

 

6.56

 

 

6.63

 

 

6.36

 

 

6.33

 

 

(31)

 

(8)

 

Commercial real estate

5.45

 

 

5.05

 

 

5.17

 

 

5.02

 

 

4.85

 

 

40

 

60

 

Lease financing

5.11

 

 

5.13

 

 

5.13

 

 

5.32

 

 

5.19

 

 

(2)

 

(8)

 

Residential mortgage

4.23

 

 

5.91

 

 

5.97

 

 

5.27

 

 

5.32

 

 

(168)

 

(109)

 

Consumer installment

5.73

 

 

3.64

 

 

3.87

 

 

5.62

 

 

5.58

 

 

209

 

15

 

Home equity

6.49

 

 

5.48

 

 

5.55

 

 

6.86

 

 

6.70

 

 

101

 

(21)

 

Total loans and leases(1)

5.62

 

 

5.91

 

 

5.97

 

 

5.90

 

 

5.82

 

 

(29)

 

(20)

 

Interest-bearing deposits with banks and other

2.44

 

 

3.64

 

 

3.87

 

 

3.79

 

 

3.69

 

 

(120)

 

(125)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest-earning assets

5.11

 

 

5.48

 

 

5.55

 

 

5.49

 

 

5.44

 

 

(37)

 

(33)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

0.46

 

 

0.07

 

 

0.06

 

 

0.04

 

 

0.04

 

 

39

 

42

 

Savings

0.73

 

 

0.77

 

 

0.69

 

 

0.54

 

 

0.35

 

 

(4)

 

38

 

Money market

1.48

 

 

1.29

 

 

1.21

 

 

0.99

 

 

0.78

 

 

19

 

70

 

Certificates of deposit

2.07

 

 

2.06

 

 

1.94

 

 

1.77

 

 

1.57

 

 

1

 

50

 

Total interest-bearing deposits

1.21

 

 

1.09

 

 

1.03

 

 

0.91

 

 

0.76

 

 

12

 

45

 

Total deposits

0.94

 

 

0.86

 

 

0.81

 

 

0.72

 

 

0.60

 

 

8

 

34

 

Borrowings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

1.11

 

 

2.63

 

 

2.67

 

 

2.74

 

 

2.44

 

 

(152)

 

(133)

 

Long-term borrowings

3.17

 

 

3.34

 

 

3.44

 

 

3.31

 

 

3.13

 

 

(17)

 

4

 

Total borrowings

2.01

 

 

3.23

 

 

3.31

 

 

3.31

 

 

3.13

 

 

(122)

 

(112)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest-bearing liabilities

1.31

 

 

1.34

 

 

1.28

 

 

1.11

 

 

0.96

 

 

(3)

 

35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (FTE)

4.14

 

 

4.49

 

 

4.61

 

 

4.67

 

 

4.73

 

 

(35)

 

(59)

 

(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 Loans (Unaudited)

 

 

 

 

 

Composition of Loans

 

 

 

 

 

 

Quarter Ended

 

Change From

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Sep. 30,

(Dollars in thousands)

2019

 

2019

 

2019

 

2018

 

2018

 

2019

 

2018

Commercial and industrial

$

10,810,534

 

$

6,572,393

 

$

6,790,956

 

$

6,220,632

 

$

5,995,118

 

$

4,238,141

 

$

4,815,416

Commercial real estate

8,876,779

 

3,262,487

 

2,965,796

 

2,908,313

 

2,773,761

 

5,614,292

 

6,103,018

Lease financing

2,594,373

 

2,582,613

 

2,551,344

 

2,530,163

 

2,455,511

 

11,760

 

138,862

Residential mortgage

6,057,404

 

2,368,411

 

2,376,878

 

2,335,835

 

1,847,130

 

3,688,993

 

4,210,274

Consumer installment

1,562,252

 

1,474,480

 

1,722,557

 

2,003,572

 

2,296,241

 

87,772

 

(733,989)

Home equity

3,609,410

 

2,924,753

 

2,976,679

 

3,074,505

 

3,054,327

 

684,657

 

555,083

Total

$

33,510,752

 

$

19,185,137

 

$

19,384,210

 

$

19,073,020

 

$

18,422,088

 

$

14,325,615

 

$

15,088,664

Composition of Deposits

 

 

 

 

 

 

Quarter Ended

 

Change From

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Sep. 30,

(Dollars in thousands)

2019

 

2019

 

2019

 

2018

 

2018

 

2019

 

2018

Noninterest-bearing deposits

$

7,979,900

 

$

4,062,912

 

$

4,104,652

 

$

3,936,155

 

$

3,974,333

 

$

3,916,988

 

$

4,005,567

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

6,266,740

 

2,498,042

 

2,532,688

 

2,459,617

 

2,420,896

 

3,768,698

 

3,845,844

Savings

8,347,541

 

6,503,102

 

6,426,465

 

6,107,812

 

5,724,582

 

1,844,439

 

2,622,959

Money market

4,305,921

 

1,443,004

 

1,468,308

 

1,609,422

 

1,504,952

 

2,862,917

 

2,800,969

Certificates of deposit

8,385,972

 

4,605,327

 

4,491,998

 

4,790,680

 

4,871,748

 

3,780,645

 

3,514,224

Total interest-bearing deposits

27,306,174

 

15,049,475

 

14,919,459

 

14,967,531

 

14,522,178

 

12,256,699

 

12,783,996

Total deposits

$

35,286,074

 

$

19,112,387

 

$

19,024,111

 

$

18,903,686

 

$

18,496,511

 

$

16,173,687

 

$

16,789,563

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Summary of Credit Quality Data (Unaudited)

 

Allowance for Loan and Lease Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

2019

 

2019

 

2019

 

2018

 

2018

 

 

 

% of

 

 

 

% of

 

 

 

% of

 

 

 

% of

 

 

 

% of

(Dollars in thousands)

Balance

 

Portfolio

Balance

 

Portfolio

Balance

 

Portfolio

Balance

 

Portfolio

Balance

 

Portfolio

Commercial and industrial

$

39,974

 

0.37

%

 

$

38,605

 

0.59

%

 

$

38,639

 

0.57

%

 

$

41,103

 

0.66

%

 

$

40,211

 

0.67

%

Commercial real estate

24,090

 

0.27

 

 

22,747

 

0.70

 

 

20,659

 

0.70

 

 

22,877

 

0.79

 

 

22,119

 

0.80

 

Lease financing

14,367

 

0.55

 

 

14,440

 

0.56

 

 

14,377

 

0.56

 

 

13,449

 

0.53

 

 

12,427

 

0.51

 

Residential mortgage

19,816

 

0.33

 

 

21,102

 

0.89

 

 

20,281

 

0.85

 

 

21,436

 

0.92

 

 

22,312

 

1.21

 

Consumer installment

1,859

 

0.12

 

 

26,731

 

1.81

 

 

30,477

 

1.77

 

 

35,151

 

1.75

 

 

40,606

 

1.77

 

Home equity

21,112

 

0.58

 

 

22,878

 

0.78

 

 

23,539

 

0.79

 

 

23,430

 

0.76

 

 

22,946

 

0.75

 

Total

$

121,218

 

0.36

%

 

$

146,503

 

0.76

%

 

$

147,972

 

0.76

%

 

$

157,446

 

0.83

%

 

$

160,621

 

0.87

%

Credit discount on acquired loans

175,759

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total allowance and discount on acquired loans

$

296,977

 

0.89

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in Allowance for Loan and Lease Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

Change From

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Sep. 30,

(In thousands)

2019

 

2019

 

2019

 

2018

 

2018

 

2019

 

2018

Balance, beginning of period

$

146,503

 

$

147,972

 

$

157,446

 

$

160,621

 

$

165,619

 

$

(1,469)

 

$

(19,116)

Charge-offs

(35,547)

 

(21,066)

 

(24,431)

 

(27,227)

 

(19,448)

 

(14,481)

 

(16,099)

Recoveries

6,969

 

6,984

 

5,777

 

5,913

 

12,658

 

(15)

 

(5,689)

Net (charge-offs) recoveries

(28,578)

 

(14,082)

 

(18,654)

 

(21,314)

 

(6,790)

 

(14,496)

 

(21,788)

Provision for credit losses

27,188

 

13,569

 

10,122

 

18,894

 

2,270

 

13,619

 

24,918

Other(1)

(23,895)

 

(956)

 

(942)

 

(755)

 

(478)

 

(22,939)

 

(23,417)

Balance, end of period

$

121,218

 

$

146,503

 

$

147,972

 

$

157,446

 

$

160,621

 

$

(25,285)

 

$

(39,403)

(1) Primarily includes the transfer of the allowance for loan and lease losses to loans and leases held for sale.

Net Charge-offs

 

 

 

 

 

Quarter Ended

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

2019

 

2019

 

2019

 

2018

 

2018

(Dollars in thousands)

Balance

 

Rate(1)

 

Balance

 

Rate(1)

 

Balance

 

Rate(1)

 

Balance

 

Rate(1)

 

Balance

 

Rate(1)

Commercial and industrial

$

(17,631)

 

0.76

%

 

$

(5,820)

 

0.35

%

 

$

(5,259)

 

0.32

%

 

$

(9,678)

 

0.63

%

 

$

(2,081)

 

0.14

%

Commercial real estate

13

 

 

 

9

 

 

 

5

 

 

 

150

 

(0.02)

 

 

19

 

 

Lease financing

(2,192)

 

0.34

 

 

(966)

 

0.15

 

 

(1,391)

 

0.22

 

 

(574)

 

0.09

 

 

(497)

 

0.08

 

Residential mortgage

(189)

 

0.02

 

 

(80)

 

0.01

 

 

(468)

 

0.08

 

 

(109)

 

0.02

 

 

3390

 

(0.80)

 

Consumer installment

(8,984)

 

1.50

 

 

(6,990)

 

1.76

 

 

(11,561)

 

2.50

 

 

(11,299)

 

2.12

 

 

(10,662)

 

1.74

 

Home equity

405

 

(0.05)

 

 

(235)

 

0.03

 

 

20

 

 

 

196

 

(0.03)

 

 

3041

 

(0.40)

 

Total

$

(28,578)

 

0.39

%

 

$

(14,082)

 

0.29

%

 

$

(18,654)

 

0.39

%

 

$

(21,314)

 

0.46

%

 

$

(6,790)

 

0.15

%

(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 90-Day Delinquencies as a Percentage of Portfolio(1)

 

 

 

 

 

 

 

 

 

 

 

Change From

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Sep. 30,

 

2019

 

2019

 

2019

 

2018

 

2018

 

2019

 

2018

Commercial and industrial

0.02

%

 

%

 

%

 

0.01

%

 

%

 

2

bps

2

bps

Commercial real estate

0.09

 

 

 

 

 

 

 

 

 

 

9

 

9

 

Lease financing

0.09

 

 

0.12

 

 

0.10

 

 

0.07

 

 

0.07

 

 

(3)

 

2

 

Residential mortgage

0.01

 

 

0.05

 

 

0.07

 

 

0.06

 

 

0.04

 

 

(4)

 

(3)

 

Consumer installment

 

 

0.14

 

 

0.14

 

 

0.17

 

 

0.13

 

 

(14)

 

(13)

 

Home equity

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal

0.04

 

 

0.03

 

 

0.04

 

 

0.04

 

 

0.03

 

 

1

 

1

 

Portfolios acquired with deteriorated credit quality

5.47

 

 

18.92

 

 

6.75

 

 

4.65

 

 

16.70

 

 

(1,345)

 

(1,123)

 

Total delinquencies

0.09

 

 

0.04

 

 

0.04

 

 

0.04

 

 

0.03

 

 

5

 

6

 

(1) Excludes non-accrual loans and leases

Nonperforming Assets

 

 

 

 

 

 

 

 

 

 

 

Change From

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Sep. 30,

(Dollars in thousands)

2019

 

2019

 

2019

 

2018

 

2018

 

2019

 

2018

Nonaccrual loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

$

55,039

 

$

18,483

 

$

17,150

 

$

26,061

 

$

15,073

 

$

36,556

 

$

39,966

 

Commercial real estate

26,518

 

545

 

607

 

4,518

 

5,210

 

25,973

 

21,308

 

Lease financing

11,503

 

12,886

 

10,976

 

7,993

 

7,306

 

(1,383)

 

4,197

 

Residential mortgage

48,816

 

34,760

 

35,227

 

33,111

 

33,136

 

14,056

 

15,680

 

Consumer installment

636

 

8,633

 

9,034

 

8,581

 

7,614

 

(7,997)

 

(6,978)

 

Home equity

39,296

 

32,686

 

30,291

 

25,654

 

21,957

 

6,610

 

17,339

 

Total nonaccrual loans and leases

181,808

 

107,993

 

103,285

 

105,918

 

90,296

 

73,815

 

91,512

 

Other real estate owned

27,638

 

11,964

 

18,361

 

17,403

 

19,079

 

15,674

 

8,559

 

Total nonperforming assets

$

209,446

 

$

119,957

 

$

121,646

 

$

123,321

 

$

109,375

 

$

89,489

 

$

100,071

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans and leases as a percentage of total loans and leases

0.54

%

 

0.56

%

 

0.53

%

 

0.56

%

 

0.49

%

 

(2)

bps

5

bps

Allowance for loan and lease losses as a percentage of total loans and leases

66.67

 

 

135.66

 

 

143.27

 

 

148.65

 

 

177.88

 

 

(6,899)

 

(11,121)

 

Nonperforming assets as a percentage of total loans and leases and other real estate owned

0.62

 

 

0.62

 

 

0.63

 

 

0.65

 

 

0.59

 

 

 

3

 

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Capital Information (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At or For the Quarter Ended

 

Change From

(Dollars in thousands, except per share data)

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Sep. 30,

2019

 

2019

 

2019

 

2018

 

2018

 

2019

 

2018

Dividends declared per common share

$

0.35

 

 

$

0.15

 

 

$

0.15

 

 

$

0.15

 

 

$

0.15

 

 

133.3

 

%

133.3

 

%

Book value per common share

 

35.82

 

 

 

30.43

 

 

$

29.38

 

 

$

28.44

 

 

$

27.58

 

 

17.7

 

 

29.9

 

 

Tangible book value per common share(1)

 

26.18

 

 

 

28.33

 

 

 

27.28

 

 

 

26.33

 

 

 

25.50

 

 

(7.6

)

 

2.7

 

 

Common equity to assets

 

12.04

%

 

 

10.22

%

 

 

10.02

%

 

 

9.99

%

 

 

10.21

%

 

182

 

bps

183

 

bps

Tangible common equity to tangible assets(1)

 

9.09

 

 

 

9.58

 

 

 

9.37

 

 

 

9.32

 

 

 

9.51

 

 

(49

)

 

(42

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regulatory Capital:(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity Tier 1 capital

$

4,009,214

 

 

$

2,305,706

 

 

$

2,266,244

 

 

$

2,224,183

 

 

$

2,226,820

 

 

73.9

 

%

80.0

 

%

Tier 1 capital

 

4,197,706

 

 

 

2,495,178

 

 

 

2,459,132

 

 

 

2,408,393

 

 

 

2,412,869

 

 

68.2

 

 

74.0

 

 

Total capital

 

4,652,708

 

 

 

2,811,347

 

 

 

2,792,419

 

 

 

2,750,581

 

 

 

2,754,615

 

 

65.5