Toggle SGML Header (+)


Section 1: 8-K (8-K)

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 


 

FORM 8-K

 


 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):

January 29, 2014

 


 

 

 

TCF FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

 


 

Delaware

 

001-10253

 

41-1591444

(State or other jurisdiction of

incorporation)

 

(Commission File Number)

 

(IRS Employer Identification No.)

 

200 Lake Street East, Mail Code EX0-03-A, Wayzata, Minnesota 55391-1693

(Address of principal executive offices, including Zip Code)

 

(952) 745-2760

(Registrant’s telephone number, including area code)

 


 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

[ ]   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

[ ]   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

[ ]   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

[ ]   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 


 

Item 2.02  Results of Operations and Financial Condition.

 

The following information, including Exhibit 99.1, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall such information and Exhibit be deemed incorporated by reference in any filing under the Securities Act of 1933, except as may be expressly set forth by specific reference in such a filing.

 

TCF Financial Corporation (the “Company”) issued a press release dated January 29, 2014, attached to this Form 8-K as Exhibit 99.1, announcing its results of operations for the quarter and year ended December 31, 2013.

 

The earnings release is also available on the Investor Relations section of the Company’s web site at http://ir.tcfbank.com. The Company’s Annual Report to Shareholders and its reports on Forms 10-K, 10-Q and 8-K and other publicly available information should be consulted for other important information about the Company.

 

Item 7.01 Regulation FD Disclosure.

 

Information is being furnished herein in Exhibit 99.2 with respect to the slide presentation prepared for use with the press release. This information includes selected financial and operational information through the fourth quarter of 2013 and does not represent a complete set of financial statements and related notes prepared in conformity with generally accepted accounting principles (“GAAP”). Most, but not all, of the selected financial information furnished herein is derived from the Company’s consolidated financial statements and related notes prepared in accordance with GAAP and management’s discussion and analysis included in the Company’s reports on Forms 10-K and 10-Q. The Company’s annual financial statements are subject to independent audit. These materials are dated January 29, 2014 and TCF does not undertake to update the materials after that date.

 

The presentation is also available on the Investor Relations section of the Company’s web site at http://ir.tcfbank.com. The Company’s Annual Report to Shareholders and its reports on Forms 10-K, 10-Q and 8-K and other publicly available information should be consulted for other important information about the Company.

 

Information contained herein, including Exhibit 99.2, shall not be deemed filed for the purposes of the Securities Exchange Act of 1934, nor shall such information and Exhibit be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such a filing.

 

Item 9.01    Financial Statements and Exhibits.

 

(d)

Exhibits.

 

 

 

 

 

 

 

 

 

 

Exhibit No.

 

Description

 

 

 

 

 

 

 

99.1 

 

Earnings Release of TCF Financial Corporation,
dated January 29, 2014

 

 

 

 

 

 

 

99.2 

 

Slide presentation prepared for use with the Earnings
Release, dated January 29, 2014

 

2


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

TCF FINANCIAL CORPORATION

 

 

 

 

 

/s/ William A. Cooper

 

William A. Cooper,

 

Chairman and Chief Executive Officer

 

(Principal Executive Officer)

 

 

 

 

 

/s/ Michael S. Jones

 

Michael S. Jones,

 

Executive Vice President and Chief Financial Officer

 

(Principal Financial Officer)

 

 

 

 

 

/s/ Susan D. Bode

 

Susan D. Bode,

 

Senior Vice President and Chief Accounting Officer

 

(Principal Accounting Officer)

 

Dated:  January 29, 2014

 

3

 

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

 

Exhibit 99.1

NEWS RELEASE

 

 

 

 

 

Investors:

Media:

 

 

 

 

Jason Korstange

Mark Goldman

 

 

 

 

(952) 745-2755

(952) 475-7050

 

 

 

 

 

 

 

 

 

 

FOR IMMEDIATE RELEASE

 

TCF FINANCIAL CORPORATION 200 Lake Street East, Wayzata, MN 55391-1693

 

TCF Reports Quarterly Net Income of $35.1 Million, or 22 Cents Per Share and

Annual Net Income of $132.6 Million, or 82 Cents Per Share

 

2013 HIGHLIGHTS

-  Net interest margin of 4.68 percent, up 3 basis points from 2012

-       Core revenue(1) of $1.2 billion, up 3.2 percent from 2012

-  Provision for credit losses of $118.4 million, down 52.2 percent from 2012

-  Non-accrual loans and leases of $277 million, down 27 percent from 2012

-  Loan and lease originations increased $1.3 billion, or 12.4 percent, from 2012

-  Average deposits increased $1 billion, or 8 percent, from 2012

 

FOURTH QUARTER HIGHLIGHTS

-  Earnings per share of 22 cents, up 7 cents from the fourth quarter of 2012

-       Core revenue(1) of $306.2 million, up 1.5 percent from the fourth quarter of 2012

-  Provision for credit losses of $22.8 million, down 53 percent from the fourth quarter of 2012

-  Loan and lease originations increased $213.4 million, or 7.4 percent, from the fourth quarter of 2012

-       Average deposits increased $603.5 million, or 4.4 percent, from the fourth quarter of 2012

-  Announced that the OCC has lifted the regulatory order related to TCF’s BSA compliance program

-  Branch realignment after-tax charge of $5.6 million, or 3 cents per share, related to 46 branches to be consolidated in the first quarter of 2014

 

Summary of Financial Results

Table 1

(Dollars in thousands, except per-share data)

 

 

 

 

 

 

 

Percent Change

 

 

 

 

 

 

 

 

4Q
2013 

 

3Q
2013 

 

4Q
2012 

 

4Q13 vs
3Q13

 

4Q13 vs
4Q12

 

YTD
2013 

 

YTD  
2012
(2)

 

Percent
Change

Net income (loss)

 

$

35,148

 

$

37,948

 

$

23,551

 

(7.4)

%

49.2

 %

$

132,603

 

$

(218,490)

 

N.M.

%

Net interest income

 

201,862

 

199,627

 

201,063

 

1.1 

 

.4

 

802,624

 

780,019 

 

2.9

 

Diluted earnings (loss) per common share

 

.22

 

.23

 

.15

 

(4.3)

 

46.7

 

.82

 

(1.37)

 

N.M.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Ratios (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax pre-provision return on average assets (4)

 

1.90

 %

2.04

 %

1.94

 %

 

 

 

 

1.98

 %

(.51)

%

 

 

Return on average assets

 

.90

 

.97

 

.63

 

 

 

 

 

.87

 

(1.14)

 

 

 

Return on average common equity

 

8.39

 

9.28

 

5.93

 

 

 

 

 

8.12

 

(13.33)

 

 

 

Net interest margin

 

4.67

 

4.62

 

4.79

 

 

 

 

 

4.68

 

4.65 

 

 

 

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

 

.76

 

.71

 

1.18

 

 

 

 

 

.81

 

1.54 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N.M. Not Meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)  Core revenue is calculated as total revenue less gains (losses) on sales of securities of $1 million and $(528) thousand for the three months ended December 31, 2013 and 2012, respectively, and $964 thousand and $102.2 million for the year ended December 31, 2013 and 2012, respectively.

(2)  Includes a net, after-tax charge of $295.8 million, or $1.87 per common share, related to the balance sheet repositioning.

(3)  Annualized.

(4)  Pre-tax pre-provision profit (‘‘PTPP’’) is calculated as total revenues less non-interest expense.

 


 

2

 

WAYZATA, MN, January 29, 2014 – TCF Financial Corporation (“TCF” or the “Company”) (NYSE: TCB) today reported net income of $35.1 million for the fourth quarter of 2013, compared with net income of $23.6 million for the fourth quarter of 2012, and net income of $37.9 million for the third quarter of 2013. Diluted earnings per common share was 22 cents for the fourth quarter of 2013 (inclusive of a net after-tax charge of $5.6 million, or 3 cents per common share, related to the realignment of 46 branches), compared with 15 cents for the fourth quarter of 2012, and 23 cents for the third quarter of 2013.

 

TCF reported net income of $132.6 million for the year ended December 31, 2013, compared with a net loss of $218.5 million for the same period in 2012 (inclusive of a net after-tax charge of $295.8 million, or $1.87 per common share, related to a balance sheet repositioning involving certain investments and borrowings in the first quarter of 2012). Diluted earnings per common share was 82 cents for the year ended December 31, 2013, compared with a diluted loss per common share of $1.37 for the same period in 2012 (or earnings per common share of 49 cents when excluding the balance sheet repositioning charge).

 

-more-

 


 

3

 

Chairman’s Statement

 

“TCF’s focus in 2013 was to execute on the numerous investments we made in 2012,” said William A. Cooper, Chairman and Chief Executive Officer. “Earnings per share increased 67 percent to 82 cents in 2013 from 49 cents in 2012, excluding the balance sheet repositioning charge, reflecting the positive impact that the balance sheet repositioning had on the organization. Throughout the year, we have been successful on several initiatives as we maintained our strong pre-tax pre-provision return on average assets and significantly improved our overall credit quality. At 4.68 percent, TCF has one of the highest net interest margins in the industry. Loan and lease growth and strong origination volume and diversity continue to be a positive part of the TCF story while significant changes made to the branch system will pave the way for future customer experience enhancements in 2014.

 

“TCF is a much different looking bank than it was two years ago and we believe its strength and diversity will serve our customers and shareholders well in today’s banking environment. The investments in 2012 and the execution in 2013 have positioned TCF to capitalize on opportunities in 2014 and beyond. I am very excited about what lies ahead.”

 

-more-

 


 

4

 

Revenue

 

Total Revenue

Table 2

 

 

 

 

 

 

 

 

    Percent Change

 

 

 

 

 

 

(Dollars in thousands)

 

4Q
2013 

 

3Q
2013 

 

4Q
2012

 

4Q13 vs
3Q13

 

4Q13 vs
4Q12

 

YTD
2013 

 

YTD
2012 

 

Percent
Change

Net interest income

 

$

  201,862 

 

$

  199,627 

 

$

  201,063 

 

1.1 

%

.4 

%

$

802,624 

 

$

780,019 

 

2.9 

%

Fees and other revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees and service charges

 

43,254 

 

42,457 

 

44,262 

 

1.9 

 

(2.3)

 

166,606 

 

177,953 

 

(6.4)

 

Card revenue

 

13,066 

 

13,167 

 

12,974 

 

(.8)

 

.7 

 

51,920 

 

52,638 

 

(1.4)

 

ATM revenue

 

5,382 

 

5,941 

 

5,584 

 

(9.4)

 

(3.6)

 

22,656 

 

24,181 

 

(6.3)

 

Total banking fees

 

61,702 

 

61,565 

 

62,820 

 

.2 

 

(1.8)

 

241,182 

 

254,772 

 

(5.3)

 

Leasing and equipment finance

 

23,624 

 

29,079 

 

26,149 

 

(18.8)

 

(9.7)

 

92,037 

 

92,721 

 

(.7)

 

Gains on sales of auto loans

 

7,278 

 

7,140 

 

6,869 

 

1.9 

 

6.0 

 

29,699 

 

22,101 

 

34.4 

 

Gains on sales of consumer real estate loans

 

5,345 

 

4,152 

 

854 

 

28.7 

 

N.M.

 

21,692 

 

5,413 

 

N.M.

 

Other

 

6,419 

 

4,304 

 

3,973 

 

49.1 

 

61.6 

 

18,484 

 

13,184 

 

40.2 

 

Total fees and other revenue

 

104,368 

 

106,240 

 

100,665 

 

(1.8)

 

3.7 

 

403,094 

 

388,191 

 

3.8 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal - core revenue

 

306,230 

 

305,867 

 

301,728 

 

.1 

 

1.5 

 

1,205,718 

 

1,168,210 

 

3.2 

 

Gains (losses) on securities, net

 

1,044 

 

(80)

 

(528)

 

N.M.

 

N.M.

 

964 

 

102,232 

 

(99.1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

$

307,274 

 

$

305,787 

 

$

301,200 

 

.5 

 

2.0 

 

$

  1,206,682 

 

$

  1,270,442 

 

(5.0)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (1)

 

4.67 

%

4.62 

%

4.79 

%

 

 

 

 

4.68 

%

4.65 

%

 

 

Fees and other revenue as
a % of total revenue

 

33.97 

 

34.74 

 

33.42 

 

 

 

 

 

33.41 

 

30.56 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N.M. Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

·                 Net interest income for the fourth quarter of 2013 increased $799 thousand, or .4 percent, compared with the fourth quarter of 2012. The increase was driven by higher average loan and lease balances in the auto finance and inventory finance businesses as well as decreased rates on various deposit products. This increase was partially offset by downward pressure on yields across the lending businesses in this low interest rate environment as well as lower average balances of consumer real estate and commercial fixed-rate loans due to run-off exceeding originations.

·                 Net interest income for the fourth quarter of 2013 increased $2.2 million, or 1.1 percent, compared with the third quarter of 2013. The increase was attributable to higher average loan and lease balances in the auto finance and inventory finance businesses as well as decreased rates on various deposit products, partially offset by lower average balances of fixed-rate commercial loans primarily resulting from run-off and the impact of a portfolio loan sale.

 

-more-

 


 

5

 

·                 Net interest margin in the fourth quarter of 2013 was 4.67 percent, compared with 4.79 percent in the fourth quarter of 2012 and 4.62 percent in the third quarter of 2013. The decrease from the fourth quarter of 2012 was primarily due to downward pressure on origination yields in the lending businesses due to the low interest rate environment as well as a shift in commercial real estate from higher yielding fixed-rate loans to lower yielding variable-rate loans due to marketplace demand. The increase from the third quarter of 2013 was primarily due to cash balances held at the Federal Reserve in the previous quarter being utilized to fund asset growth and a decline in overall funding costs.

 

 

Non-interest Income

 

·                 Fees and service charges in the fourth quarter of 2013 were $43.3 million, down $1 million, or 2.3 percent, from the fourth quarter of 2012. The decrease from the fourth quarter of 2012 was due to lower transaction activity and higher average checking account balances per customer, partially offset by a larger account base.

·                 Leasing and equipment finance revenue was $23.6 million during the fourth quarter of 2013, down $2.5 million, or 9.7 percent, from the fourth quarter of 2012 and down $5.5 million, or 18.8 percent, from the third quarter of 2013. These decreases were primarily due to lower sales-type lease revenue in the leasing and equipment finance portfolio as a result of customer-driven events.

·                 TCF sold $236 million, $159.6 million and $182.5 million of auto loans during the fourth quarters of 2013 and 2012, and the third quarter of 2013, respectively, resulting in gains in the same respective periods.

·                 TCF sold $202.3 million, $25.7 million and $142.4 million of consumer real estate loans during the fourth quarters of 2013 and 2012, and the third quarter of 2013, respectively, resulting in gains in the same respective periods.

 

-more-

 


 

6

 

Loans and Leases

 

Period-End and Average Loans and Leases

 

 

 

 

 

 

 

 

 

 

Table 3

 

 

 

 

 

 

 

 

 

Percent Change

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

4Q
2013

 

3Q
2013

 

4Q
2012

 

4Q13 vs
3Q13

 

4Q13 vs
4Q12

 

 

YTD
2013

 

YTD
2012

 

Percent
Change

 

Period-End:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate

 

$

6,339,326

 

$

6,415,632

 

$

6,674,501

 

(1.2

)%

(5.0

)%

 

 

 

 

 

 

 

Commercial

 

3,148,352

 

3,137,088

 

3,405,235

 

.4

 

(7.5

)

 

 

 

 

 

 

 

Leasing and equipment finance

 

3,428,755

 

3,286,506

 

3,198,017

 

4.3

 

7.2

 

 

 

 

 

 

 

 

Inventory finance

 

1,664,377

 

1,716,542

 

1,567,214

 

(3.0

)

6.2

 

 

 

 

 

 

 

 

Auto finance

 

1,239,386

 

1,069,053

 

552,833

 

15.9

 

124.2

 

 

 

 

 

 

 

 

Other

 

26,743

 

26,827

 

27,924

 

(.3

)

(4.2

)

 

 

 

 

 

 

 

Total

 

$

15,846,939

 

$

15,651,648

 

$

15,425,724

 

1.2

 

2.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate

 

$

6,412,182

 

$

6,402,612

 

$

6,663,660

 

.1

 %

(3.8

)%

 

$

6,449,950

 

$

6,757,512

 

(4.6

)%

Commercial

 

3,088,524

 

3,282,880

 

3,452,768

 

(5.9

)

(10.5

)

 

3,262,746

 

3,485,218

 

(6.4

)

Leasing and equipment finance

 

3,342,182

 

3,261,638

 

3,184,540

 

2.5

 

5.0

 

 

3,260,425

 

3,155,946

 

3.3

 

Inventory finance

 

1,734,286

 

1,637,538

 

1,570,829

 

5.9

 

10.4

 

 

1,723,253

 

1,434,643

 

20.1

 

Auto finance

 

1,157,586

 

973,418

 

504,565

 

18.9

 

129.4

 

 

907,571

 

296,083

 

N.M

.

Other

 

13,369

 

12,299

 

14,704

 

8.7

 

(9.1

)

 

13,088

 

16,549

 

(20.9

)

Total

 

$

15,748,129

 

$

15,570,385

 

$

15,391,066

 

1.1

 

2.3

 

 

$

15,617,033

 

$

15,145,951

 

3.1

 

N.M. Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·                 Loans and leases were $15.8 billion at December 31, 2013, an increase of $421.2 million, or 2.7 percent, compared with December 31, 2012. Average loans and leases were $15.7 billion for the fourth quarter of 2013, an increase of $357.1 million, or 2.3 percent, compared with the fourth quarter of 2012. The increases in period-end and average loans and leases were primarily due to the continued growth of the auto finance portfolio as TCF expands the number of active dealers and sales force in its network and further penetrates existing territories, as well as an increase in both the leasing and equipment finance and inventory finance portfolios. These increases were partially offset by decreases in commercial loans, primarily due to run-off exceeding new originations, as well as decreases in consumer real estate loans driven by run-off in the first mortgage real estate business and ongoing loan sales.

·                 Loan and lease originations were $3.1 billion for the fourth quarter of 2013, an increase of $213.4 million, or 7.4 percent, compared with the fourth quarter of 2012. This increase was due to the continued growth within auto finance, as well as an increase in leasing and equipment finance originations as a result of an improving economic environment and customer-driven events.

 

-more-

 


 

7

 

Credit Quality

 

 

 

 

Credit Trends

 

Table 4

(Dollars in millions)

 

 

(At the Quarter Ended)

 

(At or for the Quarter Ended)

 

 

 

(1)  Excludes acquired portfolios and non-accrual loans and leases.

 

·                 Non-accrual loans and leases were $277 million at December 31, 2013, a decrease of $102.4 million, or 27 percent, from December 31, 2012. The decrease from December 31, 2012 was primarily due to continued efforts to actively work out problem loans in the commercial portfolio. The decrease was further driven by fewer non-accrual consumer real estate loans as a result of improved credit quality, and the sale of $40.5 million of non-accrual loans during the second quarter of 2013. The reduction was partially offset by $48.6 million of delinquent loans entering non-accrual status due to a change in the non-accrual policy for consumer real estate loans during the third quarter of 2013.

·                 Other real estate owned was $68.9 million at December 31, 2013, a decrease of $28.1 million from December 31, 2012. The decrease was primarily due to a portfolio sale of 184 consumer properties during the first quarter of 2013 and continued efforts to actively work out problem assets.

 

-more-

 


 

8

 

·                 The over 60-day delinquency rate, excluding acquired portfolios and non-accrual loans and leases, at December 31, 2013 was .19 percent, down from .25 percent at September 30, 2013 and .64 percent at December 31, 2012. The decrease from September 30, 2013 was primarily driven by loans in the commercial portfolio which were previously delinquent becoming current during the quarter. The decrease from December 31, 2012 was primarily a result of reduced over 60-day delinquencies in the consumer real estate portfolio due to a change in the non-accrual policy for consumer real estate loans during the third quarter of 2013.

·                 Net charge-offs were $30.1 million for the fourth quarter of 2013, an increase of $2.5 million from the third quarter of 2013 and a decrease of $15.4 million from the fourth quarter of 2012. The increase from September 30, 2013 was primarily driven by a charge-off on one large commercial loan reserved for in a previous quarter. The decrease from December 31, 2012 was primarily due to improved credit quality in the consumer real estate portfolio as home values improve and incident rates of default decline. Consumer real estate net charge-offs were down for the fifth consecutive quarter.

·                 Provision for credit losses was $22.8 million for the fourth quarter of 2013, a decrease of $1.8 million from the third quarter of 2013 and a decrease of $25.7 million from the fourth quarter of 2012. The decrease from the third quarter of 2013 was due to reduced reserve requirements in the commercial and consumer real estate portfolios as credit quality in those portfolios improved. The decrease from the fourth quarter of 2012 was primarily due to decreased net charge-offs in the consumer real estate portfolio resulting from improved home values and a reduction in incidents of default.

 

-more-

 


 

9

 

Deposits

 

Average Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 5

 

 

 

 

 

 

 

 

 

Percent Change

 

 

 

 

 

 

 

(Dollars in thousands)

 

4Q

 

3Q

 

4Q

 

4Q13 vs

 

4Q13 vs

 

YTD

 

YTD

 

Percent

 

 

 

2013

 

2013

 

2012

 

3Q13

 

4Q12

 

2013

 

2012

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$

4,904,125

 

$

4,833,196

 

$

4,627,627

 

1.5

 %

 

6.0

 %

 

$

4,851,952

 

$

4,602,881

 

5.4

 %

Savings

 

6,217,662

 

6,258,866

 

6,103,302

 

(.7

)

 

1.9

 

 

6,168,768

 

6,059,237

 

1.8

 

Money market

 

845,562

 

822,094

 

819,596

 

2.9

 

 

3.2

 

 

818,814

 

770,104

 

6.3

 

Subtotal

 

11,967,349

 

11,914,156

 

11,550,525

 

.4

 

 

3.6

 

 

11,839,534

 

11,432,222

 

3.6

 

Certificates of deposit

 

2,392,896

 

2,401,811

 

2,206,173

 

(.4

)

 

8.5

 

 

2,369,992

 

1,727,859

 

37.2

 

Total average deposits

 

$

14,360,245

 

$

14,315,967

 

$

13,756,698

 

.3

 

 

4.4

 

 

$

14,209,526

 

$

13,160,081

 

8.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average interest rate on deposits (1) 

 

.23%

 

.27%

 

.32%

 

 

 

 

 

 

.26%

 

.31%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·    Total average deposits for the fourth quarter of 2013 increased $603.5 million, or 4.4 percent, from the fourth quarter of 2012 and increased $44.3 million, or .3 percent, from the third quarter of 2013. The increase from the fourth quarter of 2012 was primarily due to checking account growth, as well as special campaigns for certificates of deposit. The increase from the third quarter of 2013 was primarily due to higher average checking account balances per customer as well as higher average money market balances, partially offset by lower average savings balances.

·    The average interest rate on deposits in the fourth quarter of 2013 was .23 percent, down nine basis points from the fourth quarter of 2012 and down four basis points from the third quarter of 2013. The decreases from both periods were primarily due to reduced average interest rates on various savings accounts and certificates of deposit.

 

-more-

 


 

10

 

Non-interest Expense

 

Non-interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 6

 

 

 

 

 

 

 

 

 

Percent Change

 

 

 

 

 

 

 

(Dollars in thousands)

 

4Q

 

3Q

 

4Q

 

4Q13 vs

 

4Q13 vs

 

 

YTD

 

YTD

 

Percent

 

 

 

2013

 

2013

 

2012

 

3Q13

 

4Q12

 

 

2013

 

2012

 

Change

 

Compensation and
employee benefits

 

$

108,589

 

$

110,833

 

$

101,678

 

(2.0

)%

6.8

 %

 

$

429,188

 

$

393,841

 

9.0

 %

Occupancy and equipment

 

35,504

 

33,253

 

32,809

 

6.8

 

8.2

 

 

134,694

 

130,792

 

3.0

 

FDIC insurance

 

7,892

 

8,102

 

8,671

 

(2.6

)

(9.0

)

 

32,066

 

30,425

 

5.4

 

Operating lease depreciation

 

6,009

 

6,706

 

5,905

 

(10.4

)

1.8

 

 

24,500

 

25,378

 

(3.5

)

Advertising and marketing

 

3,275

 

4,593

 

4,303

 

(28.7

)

(23.9

)

 

19,132

 

16,572

 

15.4

 

Deposit account premiums

 

479

 

664

 

523

 

(27.9

)

(8.4

)

 

2,345

 

8,669

 

(72.9

)

Other

 

44,162

 

43,730

 

53,472

 

1.0

 

(17.4

)

 

167,777

 

163,897

 

2.4

 

Core operating expenses

 

205,910

 

207,881

 

207,361

 

(.9

)

(.7

)

 

809,702

 

769,574

 

5.2

 

Loss on termination of debt

 

-

 

-

 

-

 

-

 

-

 

 

-

 

550,735

 

(100.0

)

Branch realignment

 

8,869

 

-

 

-

 

N.M

.

N.M

.

 

8,869

 

-

 

N.M

.

Foreclosed real estate and
repossessed assets, net

 

6,066

 

4,162

 

7,582

 

45.7

 

(20.0

)

 

27,950

 

41,358

 

(32.4

)

Other credit costs, net

 

(376

)

189

 

(894

)

N.M.

 

57.9

 

 

(1,252

)

887

 

N.M

.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest expense

 

$

220,469

 

$

212,232

 

$

214,049

 

3.9

 

3.0

 

 

$

845,269

 

$

1,362,554

 

(38.0

)

N.M. Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·    Compensation and employee benefits expense for the fourth quarter of 2013 increased $6.9 million, or 6.8 percent, from the fourth quarter of 2012. The increase from the fourth quarter of 2012 was primarily due to increased staff levels to support the growth of auto finance and expenses related to higher commissions based on production results and performance incentives.

·    Foreclosed real estate and repossessed assets expense decreased $1.5 million, or 20 percent, from the fourth quarter of 2012 and increased $1.9 million, or 45.7 percent, from the third quarter of 2013. The decrease from the fourth quarter of 2012 was driven by reduced expenses related to fewer foreclosed consumer properties and a reduction in write-downs in balances of existing foreclosed real estate properties as a result of improved real estate property values. The increase from the third quarter of 2013 was primarily due to continued efforts to actively work out problem commercial loans.

·    TCF executed a realignment of its retail banking system to support its strategic initiatives, which resulted in a pre-tax charge of $8.9 million in the fourth quarter of 2013. The consolidation of 46 branches in Illinois and Minnesota (45 in-store branches and 1 traditional branch) will occur near the end of the first quarter of 2014. The ongoing benefit of this branch realignment is expected to exceed the pre-tax charges, together with the estimated financial impact of related ongoing account attrition, over a period of approximately one year.

 

-more-

 


 

11

 

Capital

 

Capital Information

 

 

 

 

 

 

 

 

Table 7

 

At period end

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per-share data)

 

4Q

 

 

4Q

 

 

 

2013

 

 

2012

 

Total equity

1,964,759

 

 

 

1,876,643

 

 

 

Book value per common share

10.23

 

 

 

9.79

 

 

 

Tangible realized common equity to tangible assets (1)

 

8.18

 %

 

 

 

7.52

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk-based capital (2)

 

 

 

 

 

 

 

 

 

 

Tier 1

1,763,682

 

11.41

 %

1,633,336

 

11.09

 % 

Total

 

2,107,981

 

13.64

 

 

2,007,835

 

13.63

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage capital

1,763,682

 

9.71

 %

1,633,336

 

9.21

 % 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 common capital (3)

1,488,651

 

9.63

 %

1,356,826

 

9.21

 % 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes the impact of preferred shares, goodwill, other intangibles and accumulated other comprehensive (loss) income (see “Reconciliation of GAAP to Non-GAAP Financial Measures” table).

(2) The Company’s capital ratios continue to be in excess of “well-capitalized” regulatory benchmarks.

(3) Excludes the effect of preferred shares and qualifying non-controlling interest in subsidiaries (see “Reconciliation of GAAP to Non-GAAP Financial Measures” table).

 

·    On January 25, 2014, the Board of Directors of TCF declared a regular quarterly cash dividend of 5 cents per common share, payable on March 3, 2014, to stockholders of record at the close of business on February 14, 2014. TCF also declared dividends on the 7.50% Series A and 6.45% Series B Non-Cumulative Perpetual Preferred Stock, both payable on March 3, 2014, to stockholders of record at the close of business on February 14, 2014.

·    All capital ratios improved during the period, with retained earnings less dividends supporting the asset growth of the organization.

 

-more-


 

12

 

Webcast Information

 

A live webcast of TCF’s conference call to discuss the 2013 year-end and fourth quarter earnings will be hosted at TCF’s website, http://ir.tcfbank.com, on January 29, 2014 at 8:00 a.m. CT. A slide presentation for the call will be available on the website prior to the call. Additionally, the webcast will be available for replay at TCF’s website after the conference call. The website also includes free access to company news releases, TCF’s annual report, investor presentations and SEC filings.

 

 

TCF is a Wayzata, Minnesota-based national bank holding company. As of December 31, 2013, TCF had $18.4 billion in total assets and nearly 430 branches in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana, Arizona and South Dakota, providing retail and commercial banking services. TCF, through its subsidiaries, also conducts commercial leasing and equipment finance business in all 50 states, commercial inventory finance business in the U.S. and Canada, and indirect auto finance business in 45 states. For more information about TCF, please visit http://ir.tcfbank.com.

 

 

-more-


 

13

 

Cautionary Statements for Purposes of the Safe Harbor Provisions of the Securities Litigation Reform Act

 

Any statements contained in this earnings release regarding the outlook for the Company’s businesses and their respective markets, such as projections of future performance, guidance, statements of the Company’s plans and objectives, forecasts of market trends and other matters, are forward-looking statements based on the Company’s assumptions and beliefs. Such statements may be identified by such words or phrases as “will likely result,” “are expected to,” “will continue,” “outlook,” “will benefit,” “is anticipated,” “estimate,” “project,” “management believes” or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those discussed in such statements and no assurance can be given that the results in any forward-looking statement will be achieved. For these statements, TCF claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Any forward-looking statement speaks only as of the date on which it is made, and we disclaim any obligation to subsequently revise any forward-looking statement to reflect events or circumstances after such date or to reflect the occurrence of anticipated or unanticipated events.

 

Certain factors could cause the Company’s future results to differ materially from those expressed or implied in any forward-looking statements contained in this earnings release. These factors include the factors discussed in Part I, Item 1A of the Company’s Annual Report on Form 10-K under the heading “Risk Factors,” the factors discussed below and any other cautionary statements, written or oral, which may be made or referred to in connection with any such forward-looking statements. Since it is not possible to foresee all such factors, these factors should not be considered as complete or exhaustive.

 

Adverse Economic or Business Conditions; Competitive Conditions; Credit and Other Risks. Deterioration in general economic and banking industry conditions, including those arising from government shutdowns, defaults, anticipated defaults or rating agency downgrades of sovereign debt (including debt of the U.S.), or continued high rates of or increases in unemployment in TCF’s primary banking markets; adverse economic, business and competitive developments such as shrinking interest margins, reduced demand for financial services and loan and lease products, deposit outflows, deposit account attrition or an inability to increase the number of deposit accounts; customers completing financial transactions without using a bank; adverse changes in credit quality and other risks posed by TCF’s loan, lease, investment and securities available for sale portfolios, including declines in commercial or residential real estate values, changes in the allowance for loan and lease losses dictated by new market conditions or regulatory requirements, or the inability of home equity line borrowers to make increased payments caused by increased interest rates or amortization of principal; deviations from estimates of prepayment rates and fluctuations in interest rates that result in decreases in value of assets such as interest-only strips that arise in connection with TCF’s loan sales activity; interest rate risks resulting from fluctuations in prevailing interest rates or other factors that result in a mismatch between yields earned on TCF’s interest-earning assets and the rates paid on its deposits and borrowings; foreign currency exchange risks; counterparty risk, including the risk of defaults by our counterparties or diminished availability of counterparties who satisfy our credit quality requirements; decreases in demand for the types of equipment that TCF leases or finances; the effect of any negative publicity.

 

Legislative and Regulatory Requirements. New consumer protection and supervisory requirements and regulations, including those resulting from action by the Consumer Financial Protection Bureau and changes in the scope of Federal preemption of state laws that could be applied to national banks and their subsidiaries; the imposition of requirements that adversely impact TCF’s lending, loan collection and other business activities as a result of the Dodd-Frank Act, or other legislative or regulatory developments such as mortgage foreclosure moratorium laws, use by municipalities of eminent domain on underwater mortgages, or imposition of underwriting or other limitations that impact the ability to use certain variable-rate products; impact of legislative, regulatory or other changes affecting customer account charges and fee income; application of bankruptcy laws which result in the loss of all or part of TCF’s security interest due to collateral value declines; deficiencies in TCF’s regulatory compliance programs, which may result in regulatory enforcement actions, including monetary penalties; increased health care costs resulting from Federal health care reform legislation; adverse regulatory examinations and resulting adverse consequences such as increased capital requirements or higher deposit insurance assessments; heightened regulatory practices, requirements or expectations, including, but not limited to, requirements related to the Bank Secrecy Act and anti-money laundering compliance activity.

 

-more-


 

14

 

Earnings/Capital Risks and Constraints, Liquidity Risks. Limitations on TCF’s ability to pay dividends or to increase dividends because of financial performance deterioration, regulatory restrictions or limitations; increased deposit insurance premiums, special assessments or other costs related to adverse conditions in the banking industry, the economic impact on banks of the Dodd-Frank Act and other regulatory reform legislation; the impact of financial regulatory reform, including additional capital, leverage, liquidity and risk management requirements or changes in the composition of qualifying regulatory capital (including those resulting from U.S. implementation of Basel III requirements); adverse changes in securities markets directly or indirectly affecting TCF’s ability to sell assets or to fund its operations; diminished unsecured borrowing capacity resulting from TCF credit rating downgrades and unfavorable conditions in the credit markets that restrict or limit various funding sources; costs associated with new regulatory requirements or interpretive guidance relating to liquidity; uncertainties relating to regulatory requirements or customer opt-in preferences with respect to overdraft, which may have an adverse impact on TCF’s fee revenue; uncertainties relating to future retail deposit account changes, including limitations on TCF’s ability to predict customer behavior and the impact on TCF’s fee revenues.

 

Supermarket Branching Risk; Growth Risks. Adverse developments affecting TCF’s supermarket banking relationships or any of the supermarket chains in which TCF maintains supermarket branches; costs related to closing underperforming branches; slower than anticipated growth in existing or acquired businesses; inability to successfully execute on TCF’s growth strategy through acquisitions or cross-selling opportunities; failure to expand or diversify TCF’s balance sheet through programs or new opportunities; failure to successfully attract and retain new customers, including the failure to attract and retain manufacturers and dealers to expand the inventory finance business; failure to effectuate, and risks of claims related to, sales and securitizations of loans; risks related to new product additions and addition of distribution channels (or entry into new markets) for existing products.

 

Technological and Operational Matters. Technological or operational difficulties, loss or theft of information (including the loss of account information by, or theft from, third parties such as merchants), cyber-attacks and other security breaches, counterparty failures and the possibility that deposit account losses (fraudulent checks, etc.) may increase; failure to keep pace with technological change.

 

Litigation Risks. Results of litigation, including class action litigation concerning TCF’s lending or deposit activities including account servicing processes or fees or charges, or employment practices, the effect of interchange rate litigation against the Federal Reserve on debit card interchange fees and possible increases in indemnification obligations for certain litigation against Visa U.S.A. and potential reductions in card revenues resulting from such litigation or other litigation against Visa.

 

Accounting, Audit, Tax and Insurance Matters. Changes in accounting standards or interpretations of existing standards; federal or state monetary, fiscal or tax policies, including adoption of state legislation that would increase state taxes; ineffective internal controls; adverse federal, state or foreign tax assessments or findings in tax audits; lack of or inadequate insurance coverage for claims against TCF; potential for claims and legal action related to TCF’s fiduciary responsibilities.

 

-more-


 

15

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

 

 

 

Three Months Ended December 31,

 

Change

 

 

 

2013

 

2012

 

$

 

%

 

Interest income:

 

 

 

 

 

 

 

 

 

 

Loans and leases

 

$

204,042

 

$

210,490

 

$

(6,448)

 

   (3.1

)%

 

Securities available for sale

 

4,194

 

4,615

 

(421)

 

(9.1

)

 

Investments and other

 

7,693

 

3,922

 

3,771

 

 96.1

 

 

Total interest income

 

215,929

 

219,027

 

(3,098)

 

(1.4

)

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

Deposits

 

8,428

 

10,972

 

(2,544)

 

(23.2

)

 

Borrowings

 

5,639

 

6,992

 

(1,353)

 

(19.4

)

 

Total interest expense

 

14,067

 

17,964

 

(3,897)

 

(21.7

)

 

Net interest income

 

201,862

 

201,063

 

799

 

  .4

 

 

Provision for credit losses

 

22,792

 

48,520

 

(25,728)

 

(53.0

)

 

Net interest income after provision for credit losses

 

179,070

 

152,543

 

26,527

 

17.4

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

Fees and service charges

 

43,254

 

44,262

 

(1,008)

 

(2.3

)

 

Card revenue

 

13,066

 

12,974

 

92

 

  .7

 

 

ATM revenue

 

5,382

 

5,584

 

(202)

 

(3.6

)

 

Subtotal

 

61,702

 

62,820

 

(1,118)

 

(1.8

)

 

Leasing and equipment finance

 

23,624

 

26,149

 

(2,525)

 

(9.7

)

 

Gains on sales of auto loans

 

7,278

 

6,869

 

409

 

6.0

 

 

Gains on sales of consumer real estate loans

 

5,345

 

854

 

4,491

 

N.M.

 

 

Other

 

6,419

 

3,973

 

2,446

 

61.6

 

 

Fees and other revenue

 

104,368

 

100,665

 

3,703

 

3.7

 

 

Gains (losses) on securities, net

 

1,044

 

(528)

 

1,572

 

N.M.

 

 

Total non-interest income

 

105,412

 

100,137

 

5,275

 

5.3

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

108,589

 

101,678

 

6,911

 

6.8

 

 

Occupancy and equipment

 

35,504

 

32,809

 

2,695

 

8.2

 

 

FDIC insurance

 

7,892

 

8,671

 

(779)

 

(9.0

)

 

Operating lease depreciation

 

6,009

 

5,905

 

104

 

1.8

 

 

Advertising and marketing

 

3,275

 

4,303

 

(1,028)

 

(23.9

)

 

Deposit account premiums

 

479

 

523

 

(44)

 

(8.4

)

 

Other

 

44,162

 

53,472

 

(9,310)

 

(17.4

)

 

Subtotal

 

205,910

 

207,361

 

(1,451)

 

  (.7

)

 

Branch realignment

 

8,869

 

-

 

8,869

 

N.M.

 

 

Foreclosed real estate and repossessed assets, net

 

6,066

 

7,582

 

(1,516)

 

(20.0

)

 

Other credit costs, net

 

(376)

 

(894)

 

518

 

57.9

 

 

Total non-interest expense

 

220,469

 

214,049

 

6,420

 

3.0

 

 

Income before income tax expense

 

64,013

 

38,631

 

25,382

 

65.7

 

 

Income tax expense

 

22,791

 

10,540

 

12,251

 

116.2

 

 

Income after income tax expense

 

41,222

 

28,091

 

13,131

 

46.7

 

 

Income attributable to non-controlling interest

 

1,227

 

1,306

 

(79)

 

(6.0

)

 

Net income attributable to TCF Financial Corporation

 

39,995

 

26,785

 

13,210

 

49.3

 

 

Preferred stock dividends

 

4,847

 

3,234

 

1,613

 

49.9

 

 

Net income available to common stockholders

 

$

35,148

 

$

23,551

 

$

11,597

 

49.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

Basic

 

$

.22

 

$

.15

 

$

.07

 

46.7

 %

 

Diluted

 

.22

 

.15

 

.07

 

46.7

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

.05

 

$

.05

 

$

-

 

  -

 %

 

 

 

 

 

 

 

 

 

 

 

 

Average common and common equivalent
shares outstanding (in thousands):

 

 

 

 

 

 

 

 

 

 

Basic

 

161,544

 

159,914

 

1,630

 

1.0

 %

 

Diluted

 

162,625

 

160,500

 

2,125

 

1.3

 

 

 

 

 

 

 

 

 

 

 

 

 

N.M. Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

-more-

 


 

16

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

 

 

 

Year Ended December 31,

 

Change

 

 

 

2013

 

2012

 

$

 

%

 

Interest income:

 

 

 

 

 

 

 

 

 

 

Loans and leases

 

$

819,501

 

$

835,380

 

$

(15,879)

 

(1.9

)%

 

Securities available for sale

 

18,074

 

35,150

 

(17,076)

 

(48.6

)

 

Investments and other

 

26,965

 

14,093

 

12,872

 

91.3

 

 

Total interest income

 

864,540

 

884,623

 

(20,083)

 

(2.3

)

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

Deposits

 

36,604

 

40,987

 

(4,383)

 

(10.7

)

 

Borrowings

 

25,312

 

63,617

 

(38,305)

 

(60.2

)

 

Total interest expense

 

61,916

 

104,604

 

(42,688)

 

(40.8

)

 

Net interest income

 

802,624

 

780,019

 

22,605

 

2.9

 

 

Provision for credit losses

 

118,368

 

247,443

 

(129,075)

 

(52.2

)

 

Net interest income after provision for credit losses

 

684,256

 

532,576

 

151,680

 

28.5

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

Fees and service charges

 

166,606

 

177,953

 

(11,347)

 

(6.4

)

 

Card revenue

 

51,920

 

52,638

 

(718)

 

(1.4

)

 

ATM revenue

 

22,656

 

24,181

 

(1,525)

 

(6.3

)

 

Subtotal

 

241,182

 

254,772

 

(13,590)

 

(5.3

)

 

Leasing and equipment finance

 

92,037

 

92,721

 

(684)

 

  (.7

)

 

Gains on sales of auto loans

 

29,699

 

22,101

 

7,598

 

34.4

 

 

Gains on sales of consumer real estate loans

 

21,692

 

5,413

 

16,279

 

N.M.

 

 

Other

 

18,484

 

13,184

 

5,300

 

40.2

 

 

Fees and other revenue

 

403,094

 

388,191

 

14,903

 

3.8

 

 

Gains on securities, net

 

964

 

102,232

 

(101,268)

 

(99.1

)

 

Total non-interest income

 

404,058

 

490,423

 

(86,365)

 

(17.6

)

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

429,188

 

393,841

 

35,347

 

9.0

 

 

Occupancy and equipment

 

134,694

 

130,792

 

3,902

 

3.0

 

 

FDIC insurance

 

32,066

 

30,425

 

1,641

 

5.4

 

 

Operating lease depreciation

 

24,500

 

25,378

 

(878)

 

(3.5

)

 

Advertising and marketing

 

19,132

 

16,572

 

2,560

 

15.4

 

 

Deposit account premiums

 

2,345

 

8,669

 

(6,324)

 

(72.9

)

 

Other

 

167,777

 

163,897

 

3,880

 

2.4

 

 

Subtotal

 

809,702

 

769,574

 

40,128

 

5.2

 

 

Loss on termination of debt

 

-

 

550,735

 

(550,735)

 

(100.0

)

 

Branch realignment

 

8,869

 

-

 

8,869

 

N.M.

 

 

Foreclosed real estate and repossessed assets, net

 

27,950

 

41,358

 

(13,408)

 

(32.4

)

 

Other credit costs, net

 

(1,252)

 

887

 

(2,139)

 

N.M.

 

 

Total non-interest expense

 

845,269

 

1,362,554

 

(517,285)

 

(38.0

)

 

Income (loss) before income tax expense (benefit)

 

243,045

 

(339,555)

 

582,600

 

N.M.

 

 

Income tax expense (benefit)

 

84,345

 

(132,858)

 

217,203

 

N.M.

 

 

Income (loss) after income tax expense (benefit)

 

158,700

 

(206,697)

 

365,397

 

N.M.

 

 

Income attributable to non-controlling interest

 

7,032

 

6,187

 

845

 

13.7

 

 

Net income (loss) attributable to TCF Financial Corporation

 

151,668

 

(212,884)

 

364,552

 

N.M.

 

 

Preferred stock dividends

 

19,065

 

5,606

 

13,459

 

N.M.

 

 

Net income (loss) available to common stockholders

 

$

132,603

 

$

(218,490)

 

$

351,093

 

N.M.

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common share:

 

 

 

 

 

 

 

 

 

 

Basic

 

$

.82

 

$

(1.37)

 

$

2.19

 

N.M.

 

 

Diluted

 

.82

 

(1.37)

 

2.19

 

N.M.

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

.20

 

$

.20

 

$

-

 

   -

 %

 

 

 

 

 

 

 

 

 

 

 

 

Average common and common equivalent
shares outstanding (in thousands):

 

 

 

 

 

 

 

 

 

 

Basic

 

161,016

 

159,269

 

1,747

 

1.1

 %

 

Diluted

 

161,927

 

159,269

 

2,658

 

1.7

 

 

 

 

 

 

 

 

 

 

 

 

 

N.M. Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

-more-


 

17

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in thousands)

(Unaudited)

 

 

 

Three Months Ended December 31,

 

Change

 

 

 

2013

 

2012

 

$

 

%

 

Net income attributable to TCF Financial Corporation

 

$

39,995

 

$

26,785

 

$

13,210

 

49.3

 %

 

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

Reclassification adjustment for securities gains
included in net income

 

(860)

 

-

 

(860)

 

N.M

.

 

Unrealized holding losses arising during
the period on securities available for sale

 

(13,778)

 

(8,589)

 

(5,189)

 

(60.4

)

 

Foreign currency hedge

 

861

 

136

 

725

 

N.M

.

 

Foreign currency translation adjustment

 

(999)

 

(170)

 

(829)

 

N.M

.

 

Recognized postretirement prior service cost
and transition obligation

 

(11)

 

144

 

(155)

 

N.M

.

 

Income tax benefit

 

5,172

 

2,855

 

2,317

 

81.2

 

 

Total other comprehensive loss

 

(9,615)

 

(5,624)

 

(3,991)

 

(71.0

)

 

Comprehensive income

 

$

30,380

 

$

21,161

 

$

9,219

 

43.6

 

 

 

 

 

Year Ended December 31,

 

Change

 

 

 

2013

 

2012

 

$

 

%

 

Net income (loss) attributable to TCF Financial Corporation

 

$

151,668

 

$

(212,884)

 

$

364,552

 

N.M

.%

 

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

Reclassification adjustment for securities gains
included in net income

 

(860)

 

(89,879)

 

89,019

 

99.0

 

 

Unrealized holding (losses) gains arising during
the period on securities available for sale

 

(61,177)

 

19,794

 

(80,971)

 

N.M

.

 

Foreign currency hedge

 

1,625

 

(630)

 

2,255

 

N.M

.

 

Foreign currency translation adjustment

 

(1,979)

 

531

 

(2,510)

 

N.M

.

 

Recognized postretirement prior service cost
and transition obligation

 

(46)

 

123

 

(169)

 

N.M

.

 

Income tax benefit

 

22,781

 

25,678

 

(2,897)

 

(11.3

)

 

Total other comprehensive loss

 

(39,656)

 

(44,383)

 

4,727

 

10.7

 

 

Comprehensive income (loss)

 

$

112,012

 

$

(257,267)

 

$

369,279

 

N.M

 

 

 

 

 

 

 

 

 

 

 

 

 

N.M. Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

-more-


 

18

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in thousands, except per-share data)

(Unaudited)

 

 

 

At Dec. 31,

 

Change

 

 

 

2013

 

2012

 

$

 

%

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

915,076

 

$

1,100,347

 

$

(185,271)

 

    (16.8) %

 

Investments

 

114,238

 

120,867

 

(6,629)

 

(5.5)

 

Securities available for sale

 

551,064

 

712,091

 

(161,027)

 

(22.6)  

 

Loans and leases held for sale

 

79,768

 

10,289

 

69,479

 

N.M.

 

Loans and leases:

 

 

 

 

 

 

 

 

 

Consumer real estate

 

6,339,326

 

6,674,501

 

(335,175)

 

(5.0)

 

Commercial

 

3,148,352

 

3,405,235

 

(256,883)

 

(7.5)

 

Leasing and equipment finance

 

3,428,755

 

3,198,017

 

230,738

 

7.2

 

Inventory finance

 

1,664,377

 

1,567,214

 

97,163

 

6.2

 

Auto finance

 

1,239,386

 

552,833

 

686,553

 

124.2    

 

Other loans and leases

 

26,743

 

27,924

 

(1,181)

 

(4.2)

 

Total loans and leases

 

15,846,939

 

15,425,724

 

421,215

 

2.7

 

Allowance for loan and lease losses

 

(252,230)

 

(267,128)

 

14,898

 

5.6

 

Net loans and leases

 

15,594,709

 

15,158,596

 

436,113

 

2.9

 

Premises and equipment, net

 

437,602

 

440,466

 

(2,864)

 

  (.7)

 

Goodwill

 

225,640

 

225,640

 

-

 

   -

 

Other assets

 

461,743

 

457,621

 

4,122

 

  .9

 

Total assets

 

$

18,379,840

 

$

18,225,917

 

$

153,923

 

  .8

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

Checking

 

$

4,980,451

 

$

4,834,632

 

$

145,819

 

3.0

 

Savings

 

6,194,003

 

6,104,104

 

89,899

 

1.5

 

Money market

 

831,910

 

820,553

 

11,357

 

1.4

 

Subtotal

 

12,006,364

 

11,759,289

 

247,075

 

2.1

 

Certificates of deposit

 

2,426,412

 

2,291,497

 

134,915

 

5.9

 

Total deposits

 

14,432,776

 

14,050,786

 

381,990

 

2.7

 

Short-term borrowings

 

4,918

 

2,619

 

2,299

 

87.8  

 

Long-term borrowings

 

1,483,325

 

1,931,196

 

(447,871)

 

(23.2)  

 

Total borrowings

 

1,488,243

 

1,933,815

 

(445,572)

 

(23.0)  

 

Accrued expenses and other liabilities

 

494,062

 

364,673

 

129,389

 

35.5  

 

Total liabilities

 

16,415,081

 

16,349,274

 

65,807

 

  .4

&nbs