TCF Reports Fourth Quarter 2020 Results

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

Fourth Quarter 2020 Highlights

  • Quarterly net income of $91.4 million, or $0.58 per diluted share, up 63.9% from the third quarter of 2020
  • Adjusted diluted earnings per common share of $0.75(1), up 19.0% from the third quarter of 2020. Adjusted diluted earnings per common share excludes $24.7 million, or $0.17 per share, after-tax impact of merger-related expenses and notable items
  • Loan and lease balances grew 0.4% from September 30, 2020. Loan and lease balances, excluding PPP loans, grew 1.2% from September 30, 2020
  • Net charge-offs of $11.6 million, or 0.14% of average loans and leases (annualized)
  • Provision for credit losses of $11.8 million, down 83.0% from the third quarter of 2020
  • Allowance for credit losses, which includes the reserve for unfunded lending commitments, of 1.59% of total loans and leases, compared to 1.60% at September 30, 2020
  • Nonaccrual loans and leases of $677.3 million, up $300.6 million, or 79.8%, from September 30, 2020
  • Efficiency ratio of 74.53%, improved 76 basis points from the third quarter of 2020. Adjusted efficiency ratio of 64.80%(1), up 363 basis points from the third quarter of 2020
  • Common equity Tier 1 capital ratio of 11.45%, compared to 11.45% at September 30, 2020
  • On December 13, 2020, announced merger with Huntington Bancshares Incorporated ("Huntington"), which is expected to close in the second quarter of 2021

Merger-related Expenses and Notable items in the Fourth Quarter of 2020 and Third Quarter of 2020(1)

  • Pre-tax merger-related expenses of $31.5 million, $24.4 million net of tax, or $0.17 per diluted common share for the fourth quarter of 2020, compared to pre-tax merger-related expenses of $54.0 million, $42.8 million net of tax, or $0.28 per diluted common share for the third quarter of 2020
  • Pre-tax expenses of $357 thousand, $276 thousand net of tax, related to notable items for the fourth quarter of 2020, compared to pre-tax expenses of $154 thousand, $122 thousand net of tax, related to notable items for the third quarter of 2020, see summary of notable items adjustments below

(1)

Denotes a non-GAAP financial measure. See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables and the following table detailing merger-related expenses and notable items.

Summary of Financial Results

 

 

 

 

 

 

 

 

 

 

 

 

 

At or For the Quarter Ended

 

Change From

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

Dec. 31,

(Dollars in thousands, except per share data)

2020

 

2020

 

2020

 

2020

 

2019

 

2020

2019

Financial Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to TCF

$

91,358

 

 

$

55,738

 

 

$

23,764

 

 

$

51,899

 

 

$

112,399

 

 

63.9

 

%

(18.7)

 

%

Net interest income

381,394

 

 

377,167

 

 

378,359

 

 

401,481

 

 

408,753

 

 

1.1

 

 

(6.7)

 

 

Basic earnings per common share

$

0.58

 

 

$

0.35

 

 

$

0.14

 

 

$

0.33

 

 

$

0.72

 

 

65.7

 

 

(19.4)

 

 

Diluted earnings per common share

0.58

 

 

0.35

 

 

0.14

 

 

0.32

 

 

0.72

 

 

65.7

 

 

(19.4)

 

 

Return on average assets ("ROAA")(1)

0.78

%

 

0.46

%

 

0.21

%

 

0.46

%

 

0.99

%

 

32

 

bps

(21)

 

bps

ROACE(1)

6.44

 

 

3.87

 

 

1.56

 

 

3.64

 

 

8.00

 

 

257

 

 

(156)

 

 

ROATCE (non-GAAP)(1)(2)

9.18

 

 

5.71

 

 

2.57

 

 

5.42

 

 

11.35

 

 

347

 

 

(217)

 

 

Net interest margin

3.53

 

 

3.31

 

 

3.33

 

 

3.73

 

 

3.86

 

 

22

 

 

(33)

 

 

Net interest margin (FTE)(1)(2)

3.55

 

 

3.34

 

 

3.35

 

 

3.76

 

 

3.89

 

 

21

 

 

(34)

 

 

Net charge-offs as a percentage of average loans and leases(1)

0.14

 

 

0.28

 

 

0.04

 

 

0.06

 

 

0.07

 

 

(14)

 

 

7

 

 

Nonperforming assets as a percentage of total loans and leases and other real estate owned(3)

2.06

 

 

1.20

 

 

0.94

 

 

0.80

 

 

0.59

 

 

86

 

 

147

 

 

Efficiency ratio

74.53

 

 

75.29

 

 

78.26

 

 

69.57

 

 

73.49

 

 

(76)

 

 

104

 

 

Adjusted Financial Results (non-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income attributable to TCF(1)(2)

$116,054

 

$98,696

 

$84,862

 

$89,855

 

$161,581

 

17.6

 

%

(28.2)

 

%

Adjusted diluted earnings per common

share(2)

$

0.75

 

 

$

0.63

 

 

$

0.54

 

 

$

0.57

 

 

$

1.04

 

 

19.0

 

 

(27.9)

 

 

Adjusted ROAA(1)(2)

0.99

%

 

0.81

%

 

0.70

%

 

0.78

%

 

1.42

%

 

18

 

bps

(43)

 

bps

Adjusted ROACE(1)(2)

8.23

 

 

6.99

 

 

6.03

 

 

6.43

 

 

11.57

 

 

124

 

 

(334)

 

 

Adjusted ROATCE(1)(2)

11.62

 

 

9.96

 

 

8.70

 

 

9.24

 

 

16.25

 

 

166

 

 

(463)

 

 

Adjusted efficiency ratio(2)

64.80

 

 

61.17

 

 

59.80

 

 

58.24

 

 

58.51

 

 

363

 

 

629

 

 

(1)

Annualized.

(2)

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

(3)

Prior to the adoption of CECL as of January 1, 2020, purchased credit impaired loans were not classified as nonaccrual loans because they were recorded at their net realizable value based on the principal and interest expected to be collected on the loans. At January 1, 2020, $73.4 million of previous purchased credit impaired loans were reclassified to nonaccrual loans as a result of the adoption of CECL.

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

 

For the Quarter Ended December 31, 2020

 

For the Quarter Ended September 30, 2020

(Dollars in thousands, except per share data)

Pre-tax income (loss)

 

After-tax benefit (loss)(1)

 

Per Share

 

Pre-tax income (loss)

 

After-tax benefit (loss)(1)

 

Per Share

Merger-related expenses

$

(31,530)

 

 

$

(24,420)

 

 

$

(0.17)

 

 

$

(54,011)

 

 

(42,836)

 

 

$

(0.28)

 

Notable items:

 

 

 

 

 

 

 

 

 

 

 

Loan servicing rights impairment(2)

(357)

 

 

(276)

 

 

 

 

(154)

 

 

(122)

 

 

 

Total notable items

(357)

 

 

(276)

 

 

 

 

(154)

 

 

(122)

 

 

 

Total merger-related and notable items

$

(31,887)

 

 

$

(24,696)

 

 

$

(0.17)

 

 

$

(54,165)

 

 

$

(42,958)

 

 

$

(0.28)

 

(1)

Net of tax benefit at our normal tax rate and other tax benefits.

(2)

Included within other noninterest income.

TCF Financial Corporation ("TCF" or the "Corporation") (NASDAQ: TCF) today reported net income of $91.4 million, or diluted earnings per common share of $0.58, for the fourth quarter of 2020, compared with $55.7 million, or diluted earnings per common share of $0.35, for the third quarter of 2020. Adjusted net income was $116.1 million, or $0.75 per diluted common share for the fourth quarter of 2020, compared with $98.7 million, or $0.63 per diluted common share, for the third quarter of 2020 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).

“The fourth quarter was highlighted by strong momentum across the bank which helped drive higher loan and lease balances, increased revenues, net interest margin expansion, and strong capital ratios, all of which position us well as we prepare to complete our announced merger with Huntington in the second quarter of 2021,” said David T. Provost, chief executive officer. "We believe this merger will benefit our key stakeholders through leading market share in top Midwest markets, increased scale, a broader product set, enhanced technology capabilities and investments, and significant earnings per share accretion. As we look forward to the closing of the merger, our focus over the next several months will be on taking care of our team members, serving both our consumer and commercial customers, and growing the business.”

Net Interest Income and Net Interest Margin

Net interest income was $381.4 million for the fourth quarter of 2020, an increase of $4.2 million, or 1.1%, from the third quarter of 2020. Purchase accounting accretion and amortization included in net interest income was $23.0 million for the fourth quarter of 2020, compared to $17.7 million for the third quarter of 2020. At December 31, 2020, the remaining fair value discount from purchase accounting on acquired loans totaled $108.1 million. Additionally, fourth quarter of 2020 net interest income recorded included $19.1 million of interest and fee income from PPP less funding costs, compared to $14.7 million for the third quarter of 2020. Adjusted net interest income, including FTE adjustments and excluding purchase accounting accretion and amortization and the impact from PPP loans, a non-GAAP financial measure, was $342.5 million for the fourth quarter of 2020, compared to $347.6 million for the third quarter of 2020.

Net interest margin was 3.53% for the fourth quarter of 2020, compared to 3.31% in the third quarter of 2020, while net interest margin on a fully tax-equivalent basis (FTE), a non-GAAP financial measure, was 3.55%, up 21 basis points from the third quarter of 2020. The increase in net interest margin from the third quarter of 2020 was primarily driven by lower cash balances, lower cost of funds and overall higher yields on loans benefited by PPP forgiveness and higher accretion, partially offset by new loan and lease originations at lower yields than loan and lease runoff. Deposit costs continued to reprice lower as they declined from 0.32% in the third quarter of 2020 to 0.22% in the fourth quarter of 2020. Adjusted net interest margin FTE, excluding a 21 basis point impact related to purchase accounting accretion and amortization and a four basis point impact related to PPP loans, a non-GAAP financial measure, was 3.30% for the fourth quarter of 2020, up 11 basis point from the third quarter of 2020. See the "Reconciliation of GAAP to Non-GAAP Financial Measures" tables for reconciliations of our noted non-GAAP measures.

Noninterest Income

Noninterest income was $127.2 million for the fourth quarter of 2020, an increase of $8.4 million, or 7.1%, from the third quarter of 2020. Noninterest income for the fourth quarter of 2020 included a notable item of a $357 thousand loan servicing rights impairment, included in other noninterest income. Noninterest income for the third quarter of 2020 included a notable item of an $154 thousand loan servicing rights impairment, included in other noninterest income. Adjusted noninterest income, a non-GAAP financial measure, for the fourth quarter of 2020 was $127.6 million, compared to $119.0 million in the third quarter of 2020. The fourth quarter of 2020 noninterest income, compared to the third quarter of 2020, also included increases of $8.2 million in leasing revenue due to an increase in sales-type lease revenue through our equipment financing activity and $4.3 million in fees and service charges on deposit accounts, partially offset by decreases of $9.8 million in net gains on sales of loans and leases and $2.3 million in net gains on investment securities. The decrease in net gains on sales of loans and leases was primarily due to lower volume and gain on sale rate. The fourth quarter of 2020 also included a $2.4 million favorable interest rate swap mark-to-market adjustment resulting from changes in the interest rate environment, included in other noninterest income, compared to an unfavorable interest rate swap mark-to-market adjustment of $2.6 million in the third quarter of 2020.

Noninterest Expense

Noninterest expense was $379.1 million for the fourth quarter of 2020, an increase of $5.7 million, or 1.5%, from the third quarter of 2020. The fourth quarter of 2020 included $31.5 million of merger-related expenses, $15.5 million of executive severance expense recorded in compensation and benefits expense, and $3.6 million of historic tax credit amortization recorded in other noninterest expense. The increase in the fourth quarter of 2020 primarily reflected increases of $22.7 million in compensation and benefits expense, $3.7 million in other noninterest expense and $1.8 million in occupancy and equipment expense, partially offset by a decrease of $22.5 million in merger-related expenses. Compensation and benefits expense also included $4.5 million of higher commission expense, compared to the third quarter of 2020 driven by stronger leasing activity and loan originations.

Income Tax Expense

Income tax expense for the fourth quarter of 2020 was $25.0 million, an effective tax rate of 21.3%, compared to income tax benefit of $4.4 million for the third quarter of 2020. Income tax expense for the third quarter included a $16.0 million benefit attributable to tax net operating loss carryback benefits associated with the CARES Act. Excluding the benefit provided by the CARES Act, our effective tax rate was 21.9% for the third quarter of 2020.

Credit Quality

Provision for credit losses Provision for credit losses was $11.8 million for the fourth quarter of 2020, a decrease of $57.8 million, from the third quarter of 2020. The provision for credit losses in the fourth quarter of 2020 reflects stabilization in the overall level of allowance for credit losses ("ACL") primarily resulting from improvement in both current and forecasted macro-economic conditions, offset by continued uncertainty around the performance of sectors more heavily impacted by COVID-19. Fourth quarter 2020 net charge-offs were $11.6 million, compared to $24.6 million in the third quarter of 2020.

Net charge-off rate The annualized net charge-offs as a percentage of average loans and leases were 0.14% for the fourth quarter of 2020, down 14 basis points from the third quarter of 2020.

Allowance for Credit Losses The ACL includes both the allowance for loan and lease losses, which is presented separately on the Consolidated Statements of Financial Condition, and the reserve for unfunded lending commitments, which is included in other liabilities on the Consolidated Statements of Financial Condition. The ACL was $549.2 million, or 1.59% of total loans and leases, at December 31, 2020, compared to $549.4 million, or 1.60%, at September 30, 2020. The ACL as a percentage of total loans and leases, excluding PPP loans, a non-GAAP financial measure, was relatively stable at 1.67% at December 31, 2020, compared to 1.69% at September 30, 2020 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables). The PPP loans are individually guaranteed by the Small Business Administration and therefore the accounting under CECL does not require reserves to be recorded on such loans.

Nonaccrual loans and leases Nonaccrual loans and leases were $677.3 million at December 31, 2020 and represented 1.97% of total loans and leases, compared to $376.7 million, or 1.10% of total loans and leases, at September 30, 2020. The $300.6 million increase in nonaccrual loans and leases from September 30, 2020 included a $251.9 million increase from the commercial portfolio and a $48.6 million increase from the consumer portfolio. The increase within the commercial portfolio was primarily driven by certain sectors more heavily impacted by COVID-19, including the motor coach, shuttle bus, and hotel sectors.

Nonaccrual loans and leases in the motor coach sector were $104.0 million, an increase of $65.7 million from September 30, 2020, while nonaccrual loans and leases in the shuttle bus sector were $36.4 million, an increase of $24.0 million from September 30, 2020, and nonaccrual loans in the hotel sector were $78.5 million, an increase of $57.1 million from September 30, 2020. Due to the prolonged recovery of revenues for borrowers in these sectors given the dependency on travel and related activity levels, we have taken a proactive approach by working with borrowers to extend deferrals into 2021 where necessary, many of which have been moved to nonaccrual status.

Loan and Lease Deferrals Loans and leases on deferral status were $329.8 million at December 31, 2020, a decrease of $73.8 million, or 18.3%, from September 30, 2020. Loans and leases on deferral status included $218.0 million of balances that are included in nonaccrual balances at December 31, 2020, the majority of which have been on deferral for over 180 days.

Balance Sheet

 

 

Loans and leases

 

Dec. 31,

 

Sep. 30,

 

Change

(Dollars in thousands)

2020

 

2020

 

$

%

Total loans and leases

$

34,466,408

 

$

34,343,691

 

$

122,717

 

 

0.4

%

PPP loans

1,553,908

 

1,836,850

 

$

(282,942

)

 

(15.4

)

Adjusted total loans and leases, excluding PPP(1)

$

32,912,500

 

$

32,506,841

 

$

405,659

 

 

1.2

%

(1)

Denotes a non-GAAP financial measure.

Loans and leases were $34.5 billion at December 31, 2020, an increase of $122.7 million, or 0.4%, compared to $34.3 billion at September 30, 2020. At December 31, 2020 we had $1.6 billion of PPP loans outstanding, compared to $1.8 billion at September 30, 2020, all included in our commercial and industrial loan portfolio. Loans and leases excluding PPP loans, a non-GAAP financial measure, increased $405.7 million, or 1.2%, from September 30, 2020, primarily due to increases in the residential mortgage, lease financing and commercial and industrial portfolios.

Investment securities The investment securities portfolio was $8.5 billion at December 31, 2020, an increase of $852.6 million, or 11.2%, compared to $7.6 billion at September 30, 2020. The increase from September 30, 2020 was primarily due to purchases of residential mortgage-backed securities.

Deposits Deposits were $38.9 billion at December 31, 2020, a decrease of $315.8 million, or 0.8%, compared to September 30, 2020. Increases in noninterest-bearing deposits of $345.0 million, savings account balances of $214.5 million and money market accounts of $166.3 million were offset by decreases in certificates of deposits of $810.4 million and checking deposit account balances of $231.2 million as of December 31, 2020 compared to September 30, 2020. On a year-over-year basis, noninterest-bearing deposits increased $3.1 billion, or 38.5%.

Capital The common equity Tier 1 capital ratio was 11.45% at December 31, 2020, compared to 11.45% at September 30, 2020. Our capital ratios reflect our election of the five-year CECL transition for regulatory capital purposes.

TCF Financial Corporation (NASDAQ: TCF) is a Detroit, Michigan-based financial holding company with $48 billion in total assets at December 31, 2020 and a top 10 deposit market share in the Midwest. 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 approximately 475 banking centers primarily located in Michigan, Illinois and Minnesota with additional locations in Colorado, 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 statements regarding 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.

This release also contains forward-looking statements regarding TCF's outlook or expectations with respect to the planned merger with Huntington. Examples of forward-looking statements include, but are not limited to, statements regarding the outlook and expectations of TCF and Huntington with respect to the planned merger, the strategic benefits and financial benefits of the merger, including the expected impact of the merger on the combined corporation's future financial performance (including anticipated accretion to earnings per share, the tangible book value earn-back period and other operating and return metrics), and the timing of the closing of the merger. Such risks, uncertainties and assumptions, include, among others:

  • the failure to obtain necessary regulatory approvals when expected or at all (and the risk that such approvals may result in the imposition of conditions that could adversely affect TCF or Huntington or the expected benefits of the merger);
  • the failure of either TCF or Huntington to obtain shareholder approval, or to satisfy any of the other closing conditions to the merger on a timely basis or at all;
  • the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement;
  • the possibility that the anticipated benefits of the merger, including anticipated cost savings and strategic gains, are not realized when expected or at all, including as a result of the impact of, or problems arising from, economic weakness, competitive factors in the areas where TCF and Huntington do business, or as a result of other unexpected factors or events;
  • the impact of purchase accounting with respect to the merger, or any change in the assumptions used regarding the assets purchased and liabilities assumed to determine their fair value;
  • diversion of management's attention from ongoing business operations and opportunities;
  • potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the merger;
  • the ability of either TCF or Huntington to repurchase their stock and the prices at which such repurchases may be made;
  • the outcome of any legal proceedings that may be instituted against TCF or Huntington;
  • the integration of the businesses and operations of TCF and Huntington, which may take longer than anticipated or be more costly than anticipated or have unanticipated adverse results relating to our businesses;
  • business disruptions following the merger; and
  • other factors that may affect future results of TCF and Huntington including changes in asset quality and credit risk; the inability to grow revenue and earnings; changes in interest rates and capital markets; inflation; customer borrowing, repayment, investment and deposit practices; the impact, extent and timing of technological changes; capital management activities; and other actions of the Federal Reserve Board and legislative and regulatory actions and reforms.

Additional factors that could cause results to differ materially from those described above can be found in the risk factors described in Part I, Item 1A of TCF’s Annual Report on Form 10-K under the heading "Risk Factors" filed with the SEC for the year ended December 31, 2019 or otherwise disclosed in documents filed or furnished by us with or to the SEC after the filing of the Annual Report on Form 10-K. TCF disclaims any obligation to update or revise any forward-looking statements contained in this communication, which speak only as of the date hereof, whether as a result of new information, future events or otherwise, except as required by law. 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 net income, adjusted diluted earnings per common share, adjusted ROAA, adjusted ROACE, ROATCE, adjusted ROATCE, adjusted efficiency ratio, adjusted net interest income, net interest margin (FTE), adjusted net interest margin (FTE), adjusted noninterest income, adjusted noninterest expense, tangible book value per common share, tangible common equity to tangible assets and the allowance for credit losses as percentage of total loans and leases, excluding PPP loans, 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 notable items in addition to presenting net interest income and net interest margin (FTE) excluding purchase accounting accretion and amortization and the impact of PPP loans. Management believes these measures are 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. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measure may be found in the reconciliation tables included in this press release.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Financial Condition (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Change From

(Dollars in thousands)

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30, 2020

Dec. 31, 2019

2020

 

 

2020

 

 

2020

 

 

2020

 

 

2019

 

 

$

%

$

%

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

531,918

 

 

$

538,481

 

 

$

535,507

 

 

$

713,413

 

 

$

491,787

 

 

$

(6,563

)

 

(1.2

)%

$

40,131

 

 

8.2

%

Interest-bearing deposits with other banks

728,677

 

 

 

1,232,773

 

 

 

2,545,170

 

 

 

565,458

 

 

 

736,584

 

 

 

(504,096

)

 

(40.9

)

(7,907

)

 

(1.1

)

Total cash and cash equivalents

1,260,595

 

 

 

1,771,254

 

 

 

3,080,677

 

 

 

1,278,871

 

 

 

1,228,371

 

 

 

(510,659

)

 

(28.8

)

32,224

 

 

2.6

 

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

320,436

 

 

 

300,444

 

 

 

386,483

 

 

 

484,461

 

 

 

442,440

 

 

 

19,992

 

 

6.7

 

(122,004

)

 

(27.6

)

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale, at fair value

8,284,723

 

 

 

7,446,163

 

 

 

7,219,373

 

 

 

7,025,224

 

 

 

6,720,001

 

 

 

838,560

 

 

11.3

 

1,564,722

 

 

23.3

 

Held-to-maturity, at amortized cost

184,359

 

 

 

170,309

 

 

 

130,101

 

 

 

135,619

 

 

 

139,445

 

 

 

14,050

 

 

8.2

 

44,914

 

 

32.2

 

Total investment securities

8,469,082

 

 

 

7,616,472

 

 

 

7,349,474

 

 

 

7,160,843

 

 

 

6,859,446

 

 

 

852,610

 

 

11.2

 

1,609,636

 

 

23.5

 

Loans and leases held-for-sale

222,028

 

 

 

460,427

 

 

 

532,799

 

 

 

287,177

 

 

 

199,786

 

 

 

(238,399

)

 

(51.8

)

22,242

 

 

11.1

 

Loans and leases

34,466,408

 

 

 

34,343,691

 

 

 

35,535,824

 

 

 

35,921,614

 

 

 

34,497,464

 

 

 

122,717

 

 

0.4

 

(31,056

)

 

(0.1

)

Allowance for loan and lease losses

(525,868

)

 

 

(515,229

)

 

 

(461,114

)

 

 

(406,383

)

 

 

(113,052

)

 

 

(10,639

)

 

(2.1

)

(412,816

)

 

N.M.

Loans and leases, net

33,940,540

 

 

 

33,828,462

 

 

 

35,074,710

 

 

 

35,515,231

 

 

 

34,384,412

 

 

 

112,078

 

 

0.3

 

(443,872

)

 

(1.3

)

Premises and equipment, net

470,131

 

 

 

469,699

 

 

 

472,240

 

 

 

516,454

 

 

 

533,138

 

 

 

432

 

 

0.1

 

(63,007

)

 

(11.8

)

Goodwill

1,313,046

 

 

 

1,313,046

 

 

 

1,313,046

 

 

 

1,313,046

 

 

 

1,299,878

 

 

 

0

 

 

0.0

 

13,168

 

 

1.0

 

Other intangible assets, net

146,377

 

 

 

151,875

 

 

 

157,373

 

 

 

162,887

 

 

 

168,368

 

 

 

(5,498

)

 

(3.6

)

(21,991

)

 

(13.1

)

Loan servicing rights

38,303

 

 

 

38,253

 

 

 

38,816

 

 

 

47,283

 

 

 

56,313

 

 

 

50

 

 

0.1

 

(18,010

)

 

(32.0

)

Other assets

1,621,949

 

 

 

1,615,857

 

 

 

1,656,842

 

 

 

1,828,130

 

 

 

1,479,401

 

 

 

6,092

 

 

0.4

 

142,548

 

 

9.6

 

Total assets

$

47,802,487

 

 

 

$

47,565,789

 

 

 

$

50,062,460

 

 

 

$

48,594,383

 

 

 

$

46,651,553

 

 

 

$

236,698

 

 

0.5

%

$

1,150,934

 

 

2.5

%

LIABILITIES AND EQUITY:

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing

$

11,036,086

 

 

$

10,691,041

 

 

$

10,480,245

 

 

$

8,237,916

 

 

$

7,970,590

 

 

$

345,045

 

 

3.2

%

$

3,065,496

 

 

38.5

%

Interest-bearing

27,820,233

 

 

 

28,481,056

 

 

 

28,730,627

 

 

 

27,561,387

 

 

 

26,497,873

 

 

 

(660,823

)

 

(2.3

)

1,322,360

 

 

5.0

 

Total deposits

38,856,319

 

 

 

39,172,097

 

 

 

39,210,872

 

 

 

35,799,303

 

 

 

34,468,463

 

 

 

(315,778

)

 

(0.8

)

4,387,856

 

 

12.7

 

Short-term borrowings

617,363

 

 

 

655,461

 

 

 

2,772,998

 

 

 

3,482,535

 

 

 

2,669,145

 

 

 

(38,098

)

 

(5.8

)

(2,051,782

)

 

(76.9

)

Long-term borrowings

1,374,732

 

 

 

871,845

 

 

 

936,908

 

 

 

2,600,594

 

 

 

2,354,448

 

 

 

502,887

 

 

57.7

 

(979,716

 

)

(41.6

)

Other liabilities

1,264,776

 

 

 

1,207,966

 

 

 

1,483,127

 

 

 

1,056,118

 

 

 

1,432,256

 

 

 

56,810

 

 

4.7

 

(167,480

)

 

(11.7

)

Total liabilities

42,113,190

 

 

 

41,907,369

 

 

 

44,403,905

 

 

 

42,938,550

 

 

 

40,924,312

 

 

 

205,821

 

 

0.5

 

1,188,878

 

 

2.9

 

Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

169,302

 

 

 

169,302

 

 

 

169,302

 

 

 

169,302

 

 

 

169,302

 

 

 

 

 

 

 

 

 

Common stock

152,566

 

 

 

152,380

 

 

 

152,233

 

 

 

152,186

 

 

 

152,966

 

 

 

186

 

 

0.1

 

(400

)

 

(0.3

)

Additional paid-in capital

3,457,802

 

 

 

3,450,669

 

 

 

3,441,925

 

 

 

3,433,234

 

 

 

3,462,080

 

 

 

7,133

 

 

0.2

 

(4,278

)

 

(0.1

)

Retained earnings

1,735,201

 

 

 

1,700,044

 

 

 

1,700,480

 

 

 

1,732,932

 

 

 

1,896,427

 

 

 

35,157

 

 

2.1

 

(161,226

)

 

(8.5

)

Accumulated other comprehensive income

182,673

 

 

 

191,771

 

 

 

198,408

 

 

 

166,170

 

 

 

54,277

 

 

 

(9,098

)

 

(4.7

)

128,396

 

 

N.M.

Other

(26,731

)

 

 

(27,122

)

 

 

(27,093

)

 

 

(28,140

)

 

 

(28,037

)

 

 

391

 

 

1.4

 

1,306

 

 

4.7

 

Total TCF Financial Corporation shareholders' equity

5,670,813

 

 

 

5,637,044

 

 

 

5,635,255

 

 

 

5,625,684

 

 

 

5,707,015

 

 

 

33,769

 

 

0.6

 

(36,202

)

 

(0.6

)

Non-controlling interest

18,484

 

 

 

21,376

 

 

 

23,300

 

 

 

30,149

 

 

 

20,226

 

 

 

(2,892

)

 

(13.5

)

(1,742

)

 

(8.6

)

Total equity

5,689,297

 

 

 

5,658,420

 

 

 

5,658,555

 

 

 

5,655,833

 

 

 

5,727,241

 

 

 

30,877

 

 

0.5

 

(37,944

)

 

(0.7

)

Total liabilities and equity

$

47,802,487

 

 

 

$

47,565,789

 

 

 

$

50,062,460

 

 

 

$

48,594,383

 

 

 

$

46,651,553

 

 

 

$

236,698

 

 

0.5

%

$

1,150,934

 

 

2.5

%

N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

 

 

 

 

 

 

 

 

Consolidated Statements of Income (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

Change From

(Dollars in thousands)

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30, 2020

 

Dec. 31, 2019

2020

 

2020

 

 

2020

 

2020

 

2019

 

$

 

%

 

$

 

%

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans and leases

$

366,152

 

 

$

373,112

 

 

 

$

392,826

 

 

$

443,096

 

 

$

446,738

 

 

$

(6,960

)

 

 

(1.9

)%

 

$

(80,586

)

 

 

(18.0

)%

Interest on investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

35,389

 

 

35,648

 

 

 

32,505

 

 

40,920

 

 

36,282

 

 

(259

)

 

 

(0.7

)

 

(893

)

 

 

(2.5

)

Tax-exempt

3,772

 

 

3,892

 

 

 

4,155

 

 

4,349

 

 

4,374

 

 

(120

)

 

 

(3.1

)

 

(602

)

 

 

(13.8

)

Interest on loans held-for-sale

2,682

 

 

3,829

 

 

 

3,322

 

 

1,561

 

 

15,767

 

 

(1,147

)

 

 

(30.0

)

 

(13,085

)

 

 

(83.0

)

Interest on other earning assets

3,457

 

 

3,967

 

 

 

5,562

 

 

5,466

 

 

6,617

 

 

(510

)

 

 

(12.9

)

 

(3,160

)

 

 

(47.8

)

Total interest income

411,452

 

 

420,448

 

 

 

438,370

 

 

495,392

 

 

509,778

 

 

(8,996

)

 

 

(2.1

)

 

(98,326

)

 

 

(19.3

)

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

20,930

 

 

31,852

 

 

 

46,785

 

 

67,419

 

 

77,003

 

 

(10,922

)

 

 

(34.3

)

 

(56,073

)

 

 

(72.8

)

Interest on borrowings

9,128

 

 

11,429

 

 

 

13,226

 

 

26,492

 

 

24,022

 

 

(2,301

)

 

 

(20.1

)

 

(14,894

)

 

 

(62.0

)

Total interest expense

30,058

 

 

43,281

 

 

 

60,011

 

 

93,911

 

 

101,025

 

 

(13,223

)

 

 

(30.6

)

 

(70,967

)

 

 

(70.2

)

Net interest income

381,394

 

 

377,167

 

 

 

378,359

 

 

401,481

 

 

408,753

 

 

4,227

 

 

 

1.1

 

 

(27,359

)

 

 

(6.7

)

Provision for credit losses

11,818

 

 

69,664

 

 

 

78,726

 

 

96,943

 

 

14,403

 

 

(57,846

)

 

 

(83.0

)

 

(2,585

)

 

 

(17.9

)

Net interest income after provision for credit losses

369,576

 

 

307,503

 

 

 

299,633

 

 

304,538

 

 

394,350

 

 

62,073

 

 

 

20.2

 

 

(24,774

)

 

 

(6.3

)

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leasing revenue

40,081

 

 

31,905

 

 

 

37,172

 

 

33,565

 

 

46,686

 

 

8,176

 

 

 

25.6

 

 

(6,605

)

 

 

(14.1

)

Fees and service charges on deposit accounts

29,782

 

 

25,470

 

 

 

22,832

 

 

34,597

 

 

39,356

 

 

4,312

 

 

 

16.9

 

 

(9,574

)

 

 

(24.3

)

Card and ATM revenue

22,995

 

 

23,383

 

 

 

20,636

 

 

21,685

 

 

24,751

 

 

(388

)

 

 

(1.7

)

 

(1,756

)

 

 

(7.1

)

Net gains on sales of loans and leases

13,662

 

 

23,490

 

 

 

29,034

 

 

20,590

 

 

12,934

 

 

(9,828

)

 

 

(41.8

)

 

728

 

 

 

5.6

 

Wealth management revenue

6,838

 

 

6,506

 

 

 

6,206

 

 

6,151

 

 

6,172

 

 

332

 

 

 

5.1

 

 

666

 

 

 

10.8

 

Servicing fee revenue

449

 

 

321

 

 

 

3,041

 

 

6,792

 

 

6,022

 

 

128

 

 

 

39.9

 

 

(5,573

)

 

 

(92.5

)

Net gains on investment securities

6

 

 

2,324

 

 

 

8

 

 

0

 

 

8

 

 

(2,318

)

 

 

(99.7

)

 

(2

)

 

 

(25.0

)

Other

13,423

 

 

5,411

 

 

 

14,125

 

 

13,583

 

 

22,123

 

 

8,012

 

 

 

148.1

 

 

(8,700

)

 

 

(39.3

)

Total noninterest income

127,236

 

 

118,810

 

 

 

133,054

 

 

136,963

 

 

158,052

 

 

8,426

 

 

 

7.1

 

 

(30,816

)

 

 

(19.5

)

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

191,052

 

 

168,323

 

 

 

171,799

 

 

171,528

 

 

180,969

 

 

22,729

 

 

 

13.5

 

 

10,083

 

 

 

5.6

 

Occupancy and equipment

50,062

 

 

48,233

 

 

 

54,107

 

 

57,288

 

 

56,771

 

 

1,829

 

 

 

3.8

 

 

(6,709

)

 

 

(11.8

)

Lease financing equipment depreciation

18,610

 

 

17,932

 

 

 

18,212

 

 

18,450

 

 

18,629

 

 

678

 

 

 

3.8

 

 

(19

)

 

 

(0.1

)

Net foreclosed real estate and repossessed assets

761

 

 

1,518

 

 

 

998

 

 

1,859

 

 

4,242

 

 

(757

)

 

 

(49.9

)

 

(3,481

)

 

 

(82.1

)

Merger-related expenses

31,530

 

 

54,011

 

 

 

81,619

 

 

36,728

 

 

47,025

 

 

(22,481

)

 

 

(41.6

)

 

(15,495

)

 

 

(33.0

)

Other

87,076

 

 

83,423

 

 

 

73,506

 

 

88,746

 

 

108,935

 

 

3,653

 

 

 

4.4

 

 

(21,859

)

 

 

(20.1

)

Total noninterest expense

379,091

 

 

373,440

 

 

 

400,241

 

 

374,599

 

 

416,571

 

 

5,651

 

 

 

1.5

 

 

(37,480

)

 

 

(9.0

)

Income before income tax expense (benefit)

117,721

 

 

52,873

 

 

 

32,446

 

 

66,902

 

 

135,831

 

 

64,848

 

 

 

122.6

 

 

(18,110

)

 

 

(13.3

)

Income tax expense (benefit)

25,031

 

 

(4,429

)

 

 

6,213

 

 

13,086

 

 

21,375

 

 

29,460

 

 

 

N.M.

 

3,656

 

 

 

17.1

 

Income after income tax expense (benefit)

92,690

 

 

57,302

 

 

 

26,233

 

 

53,816

 

 

114,456

 

 

35,388

 

 

 

61.8

 

 

(21,766

)

 

 

(19.0

)

Income attributable to non-controlling interest

1,332

 

 

1,564

 

 

 

2,469

 

 

1,917

 

 

2,057

 

 

(232

)

 

 

(14.8

)

 

(725

)

 

 

(35.2

)

Net income attributable to TCF Financial Corporation

91,358

 

 

55,738

 

 

 

23,764

 

 

51,899

 

 

112,399

 

 

35,620

 

 

 

63.9

 

 

(21,041

)

 

 

(18.7

)

Preferred stock dividends

2,494

 

 

2,494

 

 

 

2,494

 

 

2,493

 

 

2,494

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

$

88,864

 

 

$

53,244

 

 

 

$

21,270

 

 

$

49,406

 

 

$

109,905

 

 

$

35,620

 

 

 

66.9

%

 

$

(21,041

)

 

 

(19.1

)%

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income (Unaudited)

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

Change

(Dollars in thousands, except per share data)

2020

 

2019

 

$

 

%

Interest income:

 

 

 

 

 

 

 

Interest and fees on loans and leases

$

1,575,186

 

 

$

1,430,628

 

 

$

144,558

 

 

 

10.1

%

Interest on investment securities:

 

 

 

 

 

 

 

Taxable

144,462

 

 

106,027

 

 

38,435

 

 

 

36.3

 

Tax-exempt

16,168

 

 

11,651

 

 

4,517

 

 

 

38.8

 

Interest on loans held-for-sale

11,394

 

 

18,599

 

 

(7,205

)

 

 

(38.7

)

Interest on other earning assets

18,452

 

 

20,356

 

 

(1,904

)

 

 

(9.4

)

Total interest income

1,765,662

 

 

1,587,261

 

 

178,401

 

 

 

11.2

 

Interest expense:

 

 

 

 

 

 

 

Interest on deposits

166,986

 

 

226,157

 

 

(59,171

)

 

 

(26.2

)

Interest on borrowings

60,275

 

 

72,072

 

 

(11,797

)

 

 

(16.4

)

Total interest expense

227,261

 

 

298,229

 

 

(70,968

)

 

 

(23.8

)

Net interest income

1,538,401

 

 

1,289,032

 

 

249,369

 

 

 

19.3

 

Provision for credit losses

257,151

 

 

65,282

 

 

191,869

 

 

 

N.M.

Net interest income after provision for credit losses

1,281,250

 

 

1,223,750

 

 

57,500

 

 

 

4.7

 

Noninterest income:

 

 

 

 

 

 

 

Leasing revenue

142,723

 

 

163,718

 

 

(20,995

)

 

 

(12.8

)

Fees and service charges on deposit accounts

112,681

 

 

127,860

 

 

(15,179

)

 

 

(11.9

)

Card and ATM revenue

88,699

 

 

87,221

 

 

1,478

 

 

 

1.7

 

Net gains on sales of loans and leases

86,776

 

 

26,308

 

 

60,468

 

 

 

N.M.

Wealth management revenue

25,701

 

 

10,413

 

 

15,288

 

 

 

146.8

 

Servicing fee revenue

10,603

 

 

20,776

 

 

(10,173

)

 

 

(49.0

)

Net gains on investment securities

2,338

 

 

7,425

 

 

(5,087

)

 

 

(68.5

)

Other

46,542

 

 

21,811

 

 

24,731

 

 

 

113.4

 

Total noninterest income

516,063

 

 

465,532

 

 

50,531

 

 

 

10.9

 

Noninterest expense:

 

 

 

 

 

 

 

Compensation and employee benefits

702,702

 

 

576,922

 

 

125,780

 

 

 

21.8

 

Occupancy and equipment

209,690

 

 

189,560

 

 

20,130

 

 

 

10.6

 

Lease financing equipment depreciation

73,204

 

 

76,426

 

 

(3,222

)

 

 

(4.2

)

Net foreclosed real estate and repossessed assets

5,136

 

 

13,523

 

 

(8,387

)

 

 

(62.0

)

Merger-related expenses

203,888

 

 

171,968

 

 

31,920

 

 

 

18.6

 

Other

332,751

 

 

303,716

 

 

29,035

 

 

 

9.6

 

Total noninterest expense

1,527,371

 

 

1,332,115

 

 

195,256

 

 

 

14.7

 

Income before income tax expense

269,942

 

 

357,167

 

 

(87,225

)

 

 

(24.4

)

Income tax expense

39,901

 

 

50,241

 

 

(10,340

)

 

 

(20.6

)

Income after income tax expense

230,041

 

 

306,926

 

 

(76,885

)

 

 

(25.1

)

Income attributable to non-controlling interest

7,282

 

 

11,458

 

 

(4,176

)

 

 

(36.4

)

Net income attributable to TCF Financial Corporation

222,759

 

 

295,468

 

 

(72,709

)

 

 

(24.6

)

Preferred stock dividends

9,975

 

 

9,975

 

 

 

 

 

 

Net income available to common shareholders

$

212,784

 

 

$

285,493

 

 

$

(72,709

)

 

 

(25.5

)%

N.M. Not Meaningful

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Average Balance Sheets, Yields and Rates (Unaudited)

 

Quarter Ended

 

Dec. 31, 2020

 

Sep. 30, 2020

 

Dec. 31, 2019

 

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

$

301,460

$

 

2,855

3.77

%

 

$

361,320

$

 

2,973

3.27

%

 

$

388,640

$

 

3,170

3.24

%

Investment securities held-to-maturity

162,590

 

 

638

1.57

 

 

135,332

 

 

573

1.69

 

 

140,434

 

 

889

2.53

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

Taxable

6,553,126

 

 

34,751

2.12

 

 

6,021,643

 

 

35,075

2.33

 

 

4,960,520

 

 

35,393

2.85

 

Tax-exempt(3)

652,743

 

 

4,774

2.93

 

 

685,652

 

 

4,972

2.90

 

 

778,994

 

 

5,536

2.84

 

Loans and leases held-for-sale

419,704

 

 

2,682

2.56

 

 

490,886

 

 

3,829

3.13

 

 

1,121,326

 

 

15,767

5.58

 

Loans and leases(3)(4)

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

11,425,226

 

 

130,654

4.51

 

 

11,740,727

 

 

127,751

4.30

 

 

10,955,937

 

 

156,246

5.63

 

Commercial real estate

9,623,256

 

 

96,278

3.91

 

 

9,616,301

 

 

95,779

3.90

 

 

9,057,834

 

 

124,431

5.38

 

Lease financing

2,700,298

 

 

32,617

4.83

 

 

2,679,142

 

 

32,696

4.88

 

 

2,616,360

 

 

33,431

5.11

 

Residential mortgage

5,788,514

 

 

52,711

3.64

 

 

5,987,754

 

 

57,610

3.86

 

 

6,023,647

 

 

61,072

4.05

 

Home equity

3,202,321

 

 

39,722

4.93

 

 

3,399,468

 

 

43,489

5.09

 

 

3,604,153

 

 

53,910

5.93

 

Consumer installment

1,288,382

 

 

16,396

5.06

 

 

1,386,448

 

 

17,551

5.04

 

 

1,546,952

 

 

19,382

4.97

 

Total loans and leases(3)(4)

34,027,997

 

 

368,378

4.28

 

 

34,809,840

 

 

374,876

4.26

 

 

33,804,883

 

 

448,472

5.24

 

Interest-bearing deposits with banks and other

706,114

 

 

602

0.34

 

 

2,572,254

 

 

994

0.16

 

 

656,555

 

 

3,448

2.07

 

Total interest-earning assets

42,823,734

 

 

414,680

3.83

 

 

45,076,927

 

 

423,292

3.72

 

 

41,851,352

 

 

512,675

4.85

 

Other assets

4,537,786

 

 

 

 

4,462,673

 

 

 

 

4,268,162

 

 

 

Total assets

$

47,361,520

 

 

 

 

$

49,539,600

 

 

 

 

$

46,119,514

 

 

 

LIABILITIES AND EQUITY:

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

$

10,942,071

 

 

 

$

10,654,288

 

 

 

$

7,968,769

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

Savings

9,395,608

 

1,759

0.07

 

 

9,301,198

 

4,050

 

0.17

 

 

8,404,460

 

14,993

0.71

 

Certificates of deposit

5,784,759

 

11,580

0.80

 

 

6,657,697

 

18,446

 

1.10

 

 

7,825,573

 

38,859

1.97

 

Checking

7,029,938

 

1,763

0.10

 

 

7,029,914

 

2,025

 

0.11

 

 

5,891,566

 

7,614

0.51

 

Money market

5,478,528

 

5,828

0.42

 

 

5,501,747

 

7,331

 

0.53

 

 

4,463,476

 

15,537

1.38

 

Total interest-bearing deposits

27,688,833

 

20,930

0.30

 

 

28,490,556

 

31,852

 

0.44

 

 

26,585,075

 

77,003

1.15

 

Total deposits

38,630,904

 

20,930

0.22

 

 

39,144,844

 

31,852

 

0.32

 

 

34,553,844

 

77,003

0.88

 

Borrowings:

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

252,749

 

101

0.16

 

 

2,153,030

 

2,511

 

0.46

 

 

2,585,682

 

11,403

1.73

 

Long-term borrowings

1,253,556

 

9,027

2.87

 

 

910,149

 

8,918

 

3.91

 

 

1,739,852

 

12,620

2.87

 

Total borrowings

1,506,305

 

9,128

2.41

 

 

3,063,179

 

11,429

 

1.48

 

 

4,325,534

 

24,023

2.19

 

Total interest-bearing liabilities

29,195,138

 

30,058

0.41

 

 

31,553,735

 

43,281

 

0.55

 

 

30,910,609

 

101,026

1.29

 

Total deposits and borrowings

40,137,209

 

30,058

0.30

 

 

42,208,023

 

43,281

 

0.41

 

 

38,879,378

 

101,026

1.03

 

Accrued expenses and other liabilities

1,517,120

 

 

 

 

1,633,850

 

 

 

 

1,549,017

 

 

 

Total liabilities

41,654,329

 

 

 

 

43,841,873

 

 

 

 

40,428,395

 

 

 

Total TCF Financial Corporation shareholders' equity

5,687,196

 

 

 

 

5,675,089

 

 

 

 

5,667,436

 

 

 

Non-controlling interest in subsidiaries

19,995

 

 

 

 

22,638

 

 

 

 

23,683

 

 

 

Total equity

5,707,191

 

 

 

 

5,697,727

 

 

 

 

5,691,119

 

 

 

Total liabilities and equity

$

47,361,520

 

 

 

 

$

49,539,600

 

 

 

 

$

46,119,514

 

 

 

Net interest spread (FTE)

 

 

3.53

%

 

 

 

3.31

%

 

 

 

3.82

%

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

 

$

384,622

3.55

%

 

 

$

380,011

3.34

%

 

 

$

411,649

3.89

%

Reconciliation to Reported Net Interest Income

 

 

 

 

 

 

 

 

 

Net interest income and net interest margin (GAAP)

 

$

381,394

3.53

%

 

 

$

377,167

3.31

%

 

 

$

408,753

3.86

%

Adjustments for taxable equivalent

interest(1)(3)

 

 

 

 

 

 

 

 

 

 

 

Loans and leases

 

2,226

 

 

 

1,764

 

 

 

1,734

 

Tax-exempt investment securities

 

1,002

 

 

 

1,080

 

 

 

1,162

 

Total FTE adjustments

 

3,228

 

 

 

2,844

 

 

 

2,896

 

Net interest income and net interest margin (FTE)

 

$

384,622

3.55

%

 

 

$

380,011

3.34

%

 

 

$

411,649

3.89

%

(1)

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

(2)

Annualized.

(3)

The yield on tax-exempt loans 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 nonaccrual loans and leases and are presented net of unearned income.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Average Balance Sheets, Yields and Rates (Unaudited)

 

Year Ended

 

December 31, 2020

 

December 31, 2019

 

Average

 

 

 

Yields &

 

Average

 

 

 

Yields &

(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

$

379,482

 

$

13,356

 

 

3.52

%

 

$

210,001

 

$

6,030

 

 

2.87

%

Investment securities held-to-maturity

141,604

 

 

1,842

 

 

1.30

 

 

144,318

 

 

2,950

 

 

2.04

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

Taxable

6,050,684

 

 

142,620

 

 

2.36

 

 

3,516,413

 

 

103,077

 

 

2.93

 

Tax-exempt(3)

713,658

 

 

20,470

 

 

2.87

 

 

541,525

 

 

14,746

 

 

2.72

 

Loans and leases held-for-sale

351,898

 

 

11,394

 

 

3.24

 

 

336,292

 

 

18,599

 

 

5.53

 

Loans and leases(3)(4)

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

11,924,867

 

 

559,783

 

 

4.66

 

 

8,371,066

 

 

519,506

 

 

6.18

 

Commercial real estate

9,547,701

 

 

405,173

 

 

4.17

 

 

5,523,347

 

 

298,414

 

 

5.33

 

Lease financing

2,693,493

 

 

133,272

 

 

4.95

 

 

2,570,109

 

 

131,547

 

 

5.12

 

Residential mortgage

6,053,036

 

 

233,723

 

 

3.86

 

 

3,902,959

 

 

170,706

 

 

4.37

 

Home equity

3,405,718

 

 

179,628

 

 

5.27

 

 

3,272,760

 

 

214,116

 

 

6.54

 

Consumer installment

1,412,510

 

 

71,392

 

 

5.05

 

 

1,844,714

 

 

101,687

 

 

5.51

 

Total loans and leases(3)(4)

35,037,325

 

 

1,582,971

 

 

4.49

 

 

25,484,955

 

 

1,435,976

 

 

5.61

 

Interest-bearing deposits with banks and other

1,352,825

 

 

5,096

 

 

0.38

 

 

534,979

 

 

14,326

 

 

2.66

 

Total interest-earning assets

44,027,476

 

 

1,777,749

 

 

4.01

 

 

30,768,483

 

 

1,595,704

 

 

5.17

 

Other assets

4,373,462

 

 

 

 

 

 

2,758,447

 

 

 

 

 

Total assets

$

48,400,938

 

 

 

 

 

$

33,526,930

 

 

 

 

LIABILITIES AND EQUITY:

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

$

9,844,485

 

 

 

 

 

$

5,622,092

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

Savings

9,093,600

 

 

28,408

 

 

0.31

 

 

7,203,987

 

 

52,087

 

 

0.72

 

Certificates of deposit

6,812,648

 

 

89,835

 

 

1.32

 

 

6,086,251

 

 

122,494

 

 

2.01

 

Checking

6,676,803

 

 

11,947

 

 

0.18

 

 

3,920,613

 

 

13,961

 

 

0.36

 

Money market

5,289,371

 

 

36,796

 

 

0.70

 

 

2,729,156

 

 

37,615

 

 

1.38

 

Total interest-bearing deposits

27,872,422

 

 

166,986

 

 

0.60

 

 

19,940,007

 

 

226,157

 

 

1.13

 

Total deposits

37,716,907

 

 

166,986

 

 

0.44

 

 

25,562,099

 

 

226,157

 

 

0.88

 

Borrowings:

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

2,023,374

 

 

17,279

 

 

0.84

 

 

1,279,073

 

 

20,836

 

 

1.61

 

Long-term borrowings

1,459,004

 

 

42,996

 

 

2.93

 

 

1,592,915

 

 

51,236

 

 

3.19

 

Total borrowings

3,482,378

 

 

60,275

 

 

1.72

 

 

2,871,988

 

 

72,072

 

 

2.49

 

Total interest-bearing liabilities

31,354,800

 

 

227,261

 

 

0.72

 

 

22,811,995

 

 

298,229

 

 

1.30

 

Total deposits and borrowings

41,199,285

 

 

227,261

 

 

0.55

 

 

28,434,087

 

 

298,229

 

 

1.05

 

Accrued expenses and other liabilities

1,528,080

 

 

 

 

 

 

1,177,805

 

 

 

 

 

Total liabilities

42,727,365

 

 

 

 

 

 

29,611,892

 

 

 

 

 

Total TCF Financial Corporation shareholders' equity

5,649,567

 

 

 

 

 

 

3,889,204

 

 

 

 

 

Non-controlling interest in subsidiaries

24,006

 

 

 

 

 

 

25,834

 

 

 

 

 

Total equity

5,673,573

 

 

 

 

 

 

3,915,038

 

 

 

 

 

Total liabilities and equity

$

48,400,938

 

 

 

 

 

$

33,526,930

 

 

 

 

Net interest spread (FTE)

 

 

 

 

3.46

%

 

 

 

 

 

4.12

%

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

 

 

$

1,550,488

 

3.50

%

 

 

 

$

1,297,475

 

4.20

%

Reconciliation to Reported Net Interest Income

 

 

 

 

 

 

 

 

 

 

Net interest income and net interest margin (GAAP)

 

 

$

1,538,401

 

3.47

%

 

 

 

$

1,289,032

 

4.17

%

Adjustments for taxable equivalent interest(1)(3)

 

 

 

 

 

 

 

 

 

 

 

Loans

 

 

7,785

 

 

 

 

 

 

5,348

 

 

 

Tax-exempt investment securities

 

 

4,302

 

 

 

 

 

 

3,095

 

 

 

Total FTE adjustments

 

 

12,087

 

 

 

 

 

 

8,443

 

 

 

Net interest income and net interest margin (FTE)

 

 

$

1,550,488

 

3.50

%

 

 

 

$

1,297,475

 

4.20

%

(1)

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

(2)

Annualized.

(3)

The yield on tax-exempt loans 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 nonaccrual 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

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30, 2020

 

Dec. 31, 2019

(Dollars in thousands)

2020

 

2020

 

2020

 

2020

 

2019

 

$

 

%

 

$

 

%

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Home Loan Bank and Federal Reserve Bank stocks

$

301,460

 

$

361,320

 

$

401,532

 

$

454,675

 

$

388,640

 

$

(59,860

)

 

 

(16.6

)%

 

$

(87,180

)

 

 

(22.4

)%

Investment securities held-to-maturity

162,590

 

 

135,332

 

 

132,054

 

 

136,277

 

 

140,434

 

 

27,258

 

 

 

20.1

 

 

 

22,156

 

 

 

15.8

 

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

6,553,126

 

 

6,021,643

 

 

5,730,762

 

 

5,892,006

 

 

4,960,520

 

 

531,483

 

 

 

8.8

 

 

 

1,592,606

 

 

 

32.1

 

 

Tax-exempt

652,743

 

 

685,652

 

 

743,744

 

 

773,468

 

 

778,994

 

 

(32,909

)

 

 

(4.8

)

 

 

(126,251

)

 

 

(16.2

)

 

Loans and leases held-for-sale

419,704

 

 

490,886

 

 

356,671

 

 

138,058

 

 

1,121,326

 

 

(71,182

)

 

 

(14.5

)

 

 

(701,622

)

 

 

(62.6

)

Loans and leases(1) :

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

11,425,226

 

 

11,740,727

 

 

12,713,714

 

 

11,827,315

 

 

10,955,937

 

 

(315,501

)

 

 

(2.7

)

 

 

469,289

 

 

 

4.3

 

 

Commercial real estate

9,623,256

 

 

9,616,301

 

 

9,658,124

 

 

9,291,540

 

 

9,057,834

 

 

6,955

 

 

 

0.1

 

 

 

565,422

 

 

 

6.2

 

 

Lease financing

2,700,298

 

 

2,679,142

 

 

2,712,291

 

 

2,682,323

 

 

2,616,360

 

 

21,156

 

 

 

0.8

 

 

 

83,938

 

 

 

3.2

 

 

Residential mortgage

5,788,514

 

 

5,987,754

 

 

6,326,227

 

 

6,113,279

 

 

6,023,647

 

 

(199,240

)

 

 

(3.3

)

 

 

(235,133

)

 

 

(3.9

)

 

Home equity

3,202,321

 

 

3,399,468

 

 

3,509,107

 

 

3,514,278

 

 

3,604,153

 

 

(197,147

)

 

 

(5.8

)

 

 

(401,832

)

 

 

(11.1

)

 

Consumer installment

1,288,382

 

 

1,386,448

 

 

1,459,446

 

 

1,517,412

 

 

1,546,952

 

 

(98,066

)

 

 

(7.1

)

 

 

(258,570

)

 

 

(16.7

)

 

Total loans and

leases(1)

34,027,997

 

 

34,809,840

 

 

36,378,909

 

 

34,946,147

 

 

33,804,883

 

 

(781,843

)

 

 

(2.2

)

 

 

223,114

 

 

 

0.7

 

 

Interest-bearing deposits with banks and other

706,114

 

 

2,572,254

 

 

1,587,665

 

 

538,971

 

 

656,555

 

 

(1,866,140

)

 

 

(72.5

)

 

 

49,559

 

 

 

7.5

 

 

Total interest-earning assets

42,823,734

 

 

45,076,927

 

 

45,331,337

 

 

42,879,602

 

 

41,851,352

 

 

(2,253,193

)

 

 

(5.0

)

 

 

972,382

 

 

 

2.3

 

 

Other assets

4,537,786

 

 

4,462,673

 

 

4,384,779

 

 

4,105,824

 

 

4,268,162

 

 

75,113

 

 

 

1.7

 

 

 

269,624

 

 

 

6.3

 

 

Total assets

$

47,361,520

 

$

49,539,600

 

$

49,716,116

 

$

46,985,426

 

$

46,119,514

 

$

(2,178,080

)

 

 

(4.4

)%

 

$

1,242,006

 

 

 

2.7

%

LIABILITIES AND EQUITY:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

$

10,942,071

 

$

10,654,288

 

$

9,830,687

 

$

7,929,933

 

$

7,968,769

 

$

287,783

 

 

 

2.7

%

 

$

2,973,302

 

 

 

37.3

%

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings

9,395,608

 

 

9,301,198

 

 

9,082,184

 

 

8,589,815

 

 

8,404,460

 

 

94,410

 

 

 

1.0

 

 

 

991,148

 

 

 

11.8

 

 

Certificates of deposit

5,784,759

 

 

6,657,697

 

 

7,491,502

 

 

7,329,632

 

 

7,825,573

 

 

(872,938

)

 

 

(13.1

)

 

 

(2,040,814

)

 

 

(26.1

)

 

Checking

7,029,938

 

 

7,029,914

 

 

6,649,288

 

 

5,990,309

 

 

5,891,566

 

 

24

 

 

 

0.0

 

 

1,138,372

 

 

 

19.3

 

 

Money market

5,478,528

 

 

5,501,747

 

 

5,380,547

 

 

4,792,248

 

 

4,463,476

 

 

(23,219

)

 

 

(0.4

)

 

1,015,052

 

 

 

22.7

 

 

Total interest-bearing deposits

27,688,833

 

 

28,490,556

 

 

28,603,521

 

 

26,702,004

 

 

26,585,075

 

 

(801,723

)

 

 

(2.8

)

 

 

1,103,758

 

 

 

4.2

 

 

Total deposits

38,630,904

 

 

39,144,844

 

 

38,434,208

 

 

34,631,937

 

 

34,553,844

 

 

(513,940

)

 

 

(1.3

)

 

4,077,060

 

 

 

11.8

 

 

Borrowings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

252,749

 

 

2,153,030

 

 

3,016,490

 

 

2,689,262

 

 

2,585,682

 

 

(1,900,281

)

 

 

(88.3

)

 

 

(2,332,933

)

 

 

(90.2

)

Long-term borrowings

1,253,556

 

 

910,149

 

 

1,072,394

 

 

2,608,204

 

 

1,739,852

 

 

343,407

 

 

 

37.7

 

 

 

(486,296

)

 

 

(28.0

)

 

Total borrowings

1,506,305

 

 

3,063,179

 

 

4,088,884

 

 

5,297,466

 

 

4,325,534

 

 

(1,556,874

)

 

 

(50.8

)

 

 

(2,819,229

)

 

 

(65.2

)

 

Total interest-bearing liabilities

29,195,138

 

 

31,553,735

 

 

32,692,405

 

 

31,999,470

 

 

30,910,609

 

 

(2,358,597

)

 

 

(7.5

)

 

 

(1,715,471

)

 

 

(5.5

)

Total deposits and borrowings

40,137,209

 

 

42,208,023

 

 

42,523,092

 

 

39,929,403

 

 

38,879,378

 

 

(2,070,814

)

 

 

(4.9

)

 

 

1,257,831

 

 

 

3.2

 

Accrued expenses and other liabilities

1,517,120

 

 

1,633,850

 

 

1,534,769

 

 

1,425,536

 

 

1,549,017

 

 

(116,730

)

 

 

(7.1

)

 

(31,897

)

 

 

(2.1

)

Total liabilities

41,654,329

 

 

43,841,873

 

 

44,057,861

 

 

41,354,939

 

 

40,428,395

 

 

(2,187,544

)

 

 

(5.0

)

 

 

1,225,934

 

 

 

3.0

 

Total TCF Financial Corporation shareholders' equity

5,687,196

 

 

5,675,089

 

 

5,630,133

 

 

5,605,159

 

 

5,667,436

 

 

12,107

 

 

 

0.2

 

 

19,760

 

 

 

0.3

 

Non-controlling interest in subsidiaries

19,995

 

 

22,638

 

 

28,122

 

 

25,328

 

 

23,683

 

 

(2,643

)

 

 

(11.7

)

 

 

(3,688

)

 

 

(15.6

)

 

Total equity

5,707,191

 

 

5,697,727

 

 

5,658,255

 

 

5,630,487

 

 

5,691,119

 

 

9,464

 

 

0.2

 

 

16,072

 

 

0.3

 

Total liabilities and equity

$

47,361,520

 

$

49,539,600

 

$

49,716,116

 

$

46,985,426

 

$

46,119,514

 

$

(2,178,080

)

 

 

(4.4

)%

 

$

1,242,006

 

 

 

2.7

%

N.M. Not Meaningful

(1)

Average balances of loans and leases include nonaccrual 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

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

Dec. 31,

 

2020

 

2020

 

2020

 

2020

 

2019

 

2020

2019

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

Federal Home Loan Bank and Federal Reserve Bank stocks

3.77

%

 

3.27

%

 

4.38

%

 

2.79

%

 

3.24

%

 

50

 

bps

53

 

bps

Investment securities held-to-maturity

1.57

 

 

1.69

 

 

0.21

 

 

1.64

 

 

2.53

 

 

(12

)

 

(96

)

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

2.12

 

 

2.33

 

 

2.26

 

 

2.74

 

 

2.85

 

 

(21

)

 

(73

)

 

Tax-exempt(3)

2.93

 

 

2.90

 

 

2.81

 

 

2.85

 

 

2.84

 

 

3

 

 

9

 

 

Loans and leases held-for-sale

2.56

 

 

3.13

 

 

3.73

 

 

4.53

 

 

5.58

 

 

(57

)

 

(302

)

 

Loans and leases(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

4.51

 

 

4.30

 

 

4.41

 

 

5.42

 

 

5.63

 

 

21

 

 

(112

)

 

Commercial real estate

3.91

 

 

3.90

 

 

3.91

 

 

5.01

 

 

5.38

 

 

1

 

 

(147

)

 

Lease financing

4.83

 

 

4.88

 

 

4.99

 

 

5.09

 

 

5.11

 

 

(5

)

 

(28

)

 

Residential mortgage

3.64

 

 

3.86

 

 

3.93

 

 

4.02

 

 

4.05

 

 

(22

)

 

(41

)

 

Home equity

4.93

 

 

5.09

 

 

5.19

 

 

5.85

 

 

5.93

 

 

(16

)

 

(100

)

 

Consumer installment

5.06

 

 

5.04

 

 

4.88

 

 

5.23

 

 

4.97

 

 

2

 

 

9

 

 

Total loans and leases(3)

4.28

 

 

4.26

 

 

4.33

 

 

5.08

 

 

5.24

 

 

2

 

 

(96

)

 

Interest-bearing deposits with banks and other

0.34

 

 

0.16

 

 

0.30

 

 

1.72

 

 

2.07

 

 

18

 

 

(173

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest-earning assets

3.83

 

 

3.72

 

 

3.88

 

 

4.64

 

 

4.85

 

 

11

 

 

(102

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings

0.07

 

 

0.17

 

 

0.40

 

 

0.64

 

 

0.71

 

 

(10

)

 

(64

)

 

Certificates of deposit

0.80

 

 

1.10

 

 

1.44

 

 

1.81

 

 

1.97

 

 

(30

)

 

(117

)

 

Checking

0.10

 

 

0.11

 

 

0.14

 

 

0.39

 

 

0.51

 

 

(1

)

 

(41

)

 

Money market

0.42

 

 

0.53

 

 

0.66

 

 

1.25

 

 

1.38

 

 

(11

)

 

(96

)

 

Total interest-bearing deposits

0.30

 

 

0.44

 

 

0.66

 

 

1.02

 

 

1.15

 

 

(14

)

 

(85

)

 

Total deposits

0.22

 

 

0.32

 

 

0.49

 

 

0.78

 

 

0.88

 

 

(10

)

 

(66

)

 

Borrowings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

0.16

 

 

0.46

 

 

0.54

 

 

1.56

 

 

1.73

 

 

(30

)

 

(157

)

 

Long-term borrowings

2.87

 

 

3.91

 

 

3.40

 

 

2.42

 

 

2.87

 

 

(104

)

 

0

 

 

Total borrowings

2.41

 

 

1.48

 

 

1.29

 

 

1.98

 

 

2.19

 

 

93

 

 

22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest-bearing liabilities

0.41

 

 

0.55

 

 

0.74

 

 

1.18

 

 

1.29

 

 

(14

)

 

(88

)

 

Total deposits and borrowings

0.30

 

 

0.41

 

 

0.57

 

 

0.94

 

 

1.03

 

 

(11

)

 

(73

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (GAAP)

3.53

 

 

3.31

 

 

3.33

 

 

3.73

 

 

3.86

 

 

22

 

 

(33

)

 

Net interest margin (FTE)

3.55

 

 

3.34

 

 

3.35

 

 

3.76

 

 

3.89

 

 

21

 

 

(34

)

 

(1)

Annualized.

(2)

 

Yields are presented on a fully tax-equivalent basis.

(3)

 

The yield on tax-exempt loans and investment 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

Composition of Loans (Unaudited)

 

 

 

 

 

 

 

Quarter Ended

 

Change From

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30, 2020

Dec. 31, 2019

(Dollars in thousands)

2020

 

2020

 

2020

 

2020

 

2019

 

$

%

$

%

Commercial and industrial

$

11,422,383

 

$

11,557,237

 

$

12,200,721

 

$

12,326,943

 

$

11,439,602

 

$

(134,854

)

 

(1.2

)%

$

(17,219

)

 

(0.2

)%

Commercial real estate

9,702,587

 

 

9,627,330

 

 

9,628,344

 

 

9,486,904

 

 

9,136,870

 

 

75,257

 

 

0.8

 

565,717

 

 

6.2

 

Lease financing

2,817,231

 

 

2,724,686

 

 

2,707,402

 

 

2,708,998

 

 

2,699,869

 

 

92,545

 

 

3.4

 

117,362

 

 

4.3

 

Total commercial loan and lease portfolio

23,942,201

 

 

23,909,253

 

 

24,536,467

 

 

24,522,845

 

 

23,276,341

 

 

32,948

 

 

0.1

 

665,860

 

 

2.9

 

Residential mortgage

6,182,045

 

 

5,790,251

 

 

6,123,118

 

 

6,435,314

 

 

6,179,805

 

 

391,794

 

 

6.8

 

2,240

 

 

0.0

 

Home equity

3,108,736

 

 

3,302,983

 

 

3,445,584

 

 

3,453,502

 

 

3,498,907

 

 

(194,247

)

 

(5.9

)

(390,171

)

 

(11.2

)

Consumer installment

1,233,426

 

 

1,341,204

 

 

1,430,655

 

 

1,509,953

 

 

1,542,411

 

 

(107,778

)

 

(8.0

)

(308,985

)

 

(20.0

)

Total consumer loan portfolio

10,524,207

 

 

10,434,438

 

 

10,999,357

 

 

11,398,769

 

 

11,221,123

 

 

89,769

 

 

0.9

 

(696,916

)

 

(6.2

)

Total

$

34,466,408

 

$

34,343,691

 

$

35,535,824

 

$

35,921,614

 

$

34,497,464

 

$

122,717

 

 

0.4

%

$

(31,056

)

 

(0.1

)%

Composition of Deposits (Unaudited)

 

 

 

 

 

 

 

Quarter Ended

 

Change From

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sep. 30, 2020

Dec. 31, 2019

(Dollars in thousands)

2020

 

2020

 

2020

 

2020

 

2019

 

$

%

$

%

Noninterest-bearing deposits

$

11,036,086

 

$

10,691,041

 

$

10,480,245

 

$

8,237,916

 

$

7,970,590

 

$

345,045

 

 

3.2

%

$

3,065,496

 

 

38.5

 

%

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings

9,509,963

 

 

9,295,467

 

 

9,310,362

 

 

8,703,864

 

 

8,506,058

 

 

214,496

 

 

2.3

 

1,003,905

 

 

11.8

 

 

Checking

7,222,275

 

 

7,453,504

 

 

6,693,092

 

 

6,289,046

 

 

5,966,178

 

 

(231,229

)

 

(3.1

)

1,256,097

 

 

21.1

 

 

Certificates of deposit

5,524,381

 

 

6,334,760

 

 

7,142,996

 

 

7,463,192

 

 

7,455,556

 

 

(810,379

)

 

(12.8

)

(1,931,175

)

 

(25.9

)

 

Money market

5,563,614

 

 

5,397,325

 

 

5,584,177

 

 

5,105,285

 

 

4,570,081

 

 

166,289

 

 

3.1

 

993,533

 

 

21.7

 

 

Total interest-bearing deposits

27,820,233

 

 

28,481,056

 

 

28,730,627

 

 

27,561,387

 

 

26,497,873

 

 

(660,823

)

 

(2.3

)

1,322,360

 

 

5.0

 

 

Total deposits

$

38,856,319

 

$

39,172,097

 

$

39,210,872

 

$

35,799,303

 

$

34,468,463

 

$

(315,778

)

 

(0.8

)%

$

4,387,856

 

 

12.7

 

%

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

Summary of Credit Quality Data

 

Allowance for Credit Losses (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Jan. 1,

 

Dec. 31,

 

2020

 

2020

 

2020

 

2020

 

2020

 

2019

(Dollars in thousands)

Balance

Reserve

Rate

Balance

Reserve

Rate

Balance

Reserve

Rate

Balance

Reserve

Rate

Adjusted for

adoption

of CECL

 

Balance

Reserve

Rate

Allowance for loan and lease losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

$

155,665

 

1.36

%

 

$

145,814

 

1.26

%

 

$

122,024

 

1.00

%

 

$

117,507

 

0.95

%

 

$

93,884

 

 

$

42,430

 

0.38

%

Commercial real estate

192,331

 

 

1.98

 

 

197,892

 

 

2.06

 

 

162,364

 

 

1.69

 

 

86,209

 

 

0.91

 

 

67,620

 

 

27,308