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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):

October 25, 2013

 


 

 

TCF FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

 


 

Delaware

(State or other jurisdiction of
incorporation)

001-10253

(Commission File Number)

41-1591444

(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 October 25, 2013, attached to this Form 8-K as Exhibit 99.1, announcing its results of operations for the quarter ended September 30, 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 third 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 October 25, 2013 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 October 25, 2013

 

 

 

99.2

 

Slide presentation prepared for use with the Earnings
Release, dated October 25, 2013

 



 

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:  October 25, 2013

 


(Back To Top)

Section 2: EX-99.1 (EX-99.1)

Exhibit 99.1

NEWS RELEASE

 

CONTACT:  Jason Korstange

(952) 745-2755

tcfbank.com

FOR IMMEDIATE RELEASE

 

 

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

 

TCF Reports Quarterly Net Income of $37.9 Million, or 23 Cents Per Share

 

THIRD QUARTER HIGHLIGHTS

-  Earnings per share of 23 cents, up 17 cents from the third quarter of 2012

-       Core revenue(1) of $305.9 million, up 2.1 percent from the third quarter of 2012

-  Provision for credit losses of $24.6 million, down 74.4 percent from the third quarter of 2012

-  Non-accrual loans and leases of $282.9 million, down 32.9 percent from the third quarter of 2012

-  Loan and lease originations increased $595.5 million, or 23.9 percent, from the third quarter of 2012

-       Average deposits increased $758.2 million, or 5.6 percent, from the third quarter of 2012

-  Announced common and preferred stock dividend payments payable November 29, 2013 and December 2, 2013, respectively

 

Summary of Financial Results

Table 1

(Dollars in thousands, except per-share data)

 

 

 

 

 

 

 

Percent Change

 

 

 

 

 

 

 

 

3Q

 

2Q

 

3Q

 

3Q13 vs

 

3Q13 vs

 

YTD

 

YTD

 

Percent

 

 

2013 

 

2013 

 

2012 

 

2Q13

 

3Q12

 

2013 

 

2012 (2)

 

Change

Net income (loss)

 

$

37,948

 

$

34,057

 

$

9,322

 

11.4

 %

N.M.

 %

$

97,455

 

$

(242,041

)

N.M.%

Net interest income

 

199,627

 

202,044

 

200,559

 

(1.2

)

(0.5

)

600,762

 

578,956

 

3.8   

Diluted earnings (loss) per common share

 

.23

 

.21

 

.06

 

9.5

 

N.M.

 

.60

 

(1.52

)

N.M.   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Ratios (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

2.04

%

2.04

%

2.61

%

 

 

 

 

2.00

%

(1.32

)%

 

Return on average assets

 

.97

 

.90

 

.30

 

 

 

 

 

.86

 

(1.73

)

 

Return on average common equity

 

9.28

 

8.39

 

2.36

 

 

 

 

 

8.03

 

(19.50

)

 

Net interest margin

 

4.62

 

4.72

 

4.85

 

 

 

 

 

4.69

 

4.61

 

 

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

 

.71

 

.70

 

2.74

 

 

 

 

 

.82

 

1.67

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N.M. Not Meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)     Core revenue is calculated as total revenue less gains (losses) on sales of securities of $(80) thousand and $13 million at September 30, 2013 and September 30, 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. Year-to-date 2012 PTPP excludes the non-recurring net loss of $473.8 million related to the balance sheet repositioning completed in the first quarter of 2012.

 



 

2

 

WAYZATA, MN, October 25, 2013 – TCF Financial Corporation (“TCF” or the “Company”) (NYSE: TCB) today reported net income for the third quarter of 2013 of $37.9 million, compared with  $9.3 million for the third quarter of 2012, and $34.1 million for the second quarter of 2013. Diluted earnings per common share was 23 cents for the third quarter of 2013, compared with 6 cents for the third quarter of 2012, and 21 cents for the second quarter of 2013.

 

TCF reported net income for the first nine months of 2013 of $97.5 million, compared with a net loss of $242 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 and a net after-tax gain of $8.2 million, or 5 cents per common share, related to the sale of Visa® Class B stock in the second quarter of 2012). Diluted earnings per common share was 60 cents for the first nine months of 2013, compared with a diluted loss per common share of $1.52 for the same period in 2012 (earnings per common share of 30 cents excluding the balance sheet repositioning charge and the net gain related to the sale of Visa Class B stock).

 

-more-

 



 

3

 

Chairman’s Statement

“TCF’s credit quality showed steady improvement for the fourth consecutive quarter,” said William A. Cooper, Chairman and Chief Executive Officer. “The third quarter was highlighted by meaningful reductions in provision, delinquencies, and commercial classified assets.”

 

“During the quarter, TCF continued to take advantage of loan and lease origination opportunities. Meanwhile, TCF’s fifth consecutive quarter of net checking account growth has offset some of the banking fee pressure caused by a change in consumer behavior leading to reduced transaction volumes.

 

“I am pleased by the progress we have made in executing on our business strategies over the past two years. There is more work to be done, but we believe TCF is now in a much better position for future success, especially as interest rates eventually begin to rise.”

 

-more-

 



 

4

 

Revenue

 

Total Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 2

 

 

 

 

 

 

 

 

 

Percent Change

 

 

 

 

 

 

 

 

 

3Q

 

2Q

 

3Q

 

3Q13
vs

 

3Q13
vs

 

YTD

 

YTD

 

Percent

 

(Dollars in thousands)

 

2013 

 

2013 

 

2012 

 

2Q13

 

3Q12

 

2013 

 

2012 

 

Change

 

Net interest income

 

$

199,627

 

$

202,044

 

$

200,559

 

(1.2

)%

(.5

)%

$

600,762

 

$

578,956

 

3.8

 %

Fees and other revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees and service charges

 

42,457

 

41,572

 

43,745

 

2.1

 

(2.9

)

123,352

 

133,691

 

(7.7

)

Card revenue

 

13,167

 

13,270

 

12,927

 

(.8

)

1.9

 

38,854

 

39,664

 

(2.0

)

ATM revenue

 

5,941

 

5,828

 

6,122

 

1.9

 

(3.0

)

17,274

 

18,597

 

(7.1

)

Total banking fees

 

61,565

 

60,670

 

62,794

 

1.5

 

(2.0

)

179,480

 

191,952

 

(6.5

)

Leasing and equipment finance

 

29,079

 

22,874

 

20,498

 

27.1

 

41.9

 

68,413

 

66,572

 

2.8

 

Gains on sales of auto loans

 

7,140

 

8,135

 

7,486

 

(12.2

)

(4.6

)

22,421

 

15,232

 

47.2

 

Gains on sales of consumer real estate loans

 

4,152

 

4,069

 

4,559

 

2.0

 

(8.9

)

16,347

 

4,559

 

N.M.

 

Other

 

4,304

 

4,035

 

3,688

 

6.7

 

16.7

 

12,065

 

9,211

 

31.0

 

Total fees and other revenue

 

106,240

 

99,783

 

99,025

 

6.5

 

7.3

 

298,726

 

287,526

 

3.9

 

Subtotal - core revenue

 

305,867

 

301,827

 

299,584

 

1.3

 

2.1

 

899,488

 

866,482

 

3.8

 

(Losses) gains on securities, net

 

(80

)

 

13,033

 

N.M.

 

N.M.

 

(80

)

102,760

 

N.M.

 

Total revenue

 

$

305,787

 

$

301,827

 

$

312,617

 

1.3

 

(2.2

)

$

899,408

 

$

969,242

 

(7.2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (1)

 

4.62

%

4.72

%

4.85

%

 

 

 

 

4.69

%

4.61

%

 

 

Fees and other revenue as a % of total revenue

 

34.74

 

33.06

 

31.68

 

 

 

 

 

33.21

 

29.67

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N.M. Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

·                 Net interest income for the third quarter of 2013 decreased $932 thousand, or .5 percent, compared with the third quarter of 2012. The decrease was driven by downward pressure on yields across the lending businesses due to the prolonged low interest rate environment, partially offset by increases in average loan and lease balances primarily in the auto finance, inventory finance and leasing and equipment finance businesses.

 

·                 Net interest income for the third quarter of 2013 decreased $2.4 million, or 1.2 percent, compared with the second quarter of 2013. The decrease was attributable to a combination of downward pressure on yields within the quarter mainly in auto finance and consumer real estate and lower average loan balances in the inventory finance portfolio from seasonal liquidations.

 

-more-

 



 

5

 

·                 Net interest margin in the third quarter of 2013 was 4.62 percent, compared with 4.85 percent in the third quarter of 2012 and 4.72 percent in the second quarter of 2013. The decrease from the third quarter of 2012 was primarily due to increased cash held at the Federal Reserve. The decrease from the second quarter of 2013 was primarily due to run-off of higher yielding fixed-rate first mortgages exceeding originations and margin pressure within auto finance, as well as the impact of increased cash held at the Federal Reserve.

 

Non-interest Income

 

·                 Fees and service charges in the third quarter of 2013 were $42.5 million, down $1.3 million, or 2.9 percent, from the third quarter of 2012 and up $885 thousand, or 2.1 percent, from the second quarter of 2013. The decrease from the third quarter of 2012 was due to fewer average transactions per customer, partially offset by a higher account base. The increase from the second quarter of 2013 was primarily due to growth in the account base for the fifth consecutive quarter.

 

·                 Leasing and equipment finance revenue was $29.1 million during the third quarter of 2013, up $8.6 million, or 41.9 percent, from the third quarter of 2012 and up $6.2 million, or 27.1 percent, from the second quarter of 2013. The increase was primarily due to higher sales-type lease revenue in the leasing and equipment finance portfolio as a result of customer-driven events.

 

·                 TCF sold $182.5 million, $161.1 million and $196.9 million of auto loans during the third quarters of 2013 and 2012, and the second quarter of 2013, respectively, resulting in gains in the same respective periods.

 

·                 TCF sold $142.4 million, $136 million and $139.2 million of consumer real estate loans during the third quarters of 2013 and 2012, and the second 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)

 

3Q

 

2Q

 

3Q

 

3Q13 vs

 

3Q13 vs

 

 

YTD

 

YTD

 

Percent

 

 

 

2013

 

2013

 

2012

 

2Q13

 

3Q12

 

 

2013

 

2012

 

Change

 

Period-End:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate

 

 $

6,415,632

 

$

6,356,426

 

$

6,648,036

 

.9

 %

(3.5

)%

 

 

 

 

 

 

Commercial

 

3,137,088

 

3,350,334

 

3,511,234

 

(6.4

)

(10.7

)

 

 

 

 

 

 

Leasing and equipment finance

 

3,286,506

 

3,251,703

 

3,157,977

 

1.1

 

4.1

 

 

 

 

 

 

 

Inventory finance

 

1,716,542

 

1,713,528

 

1,466,269

 

.2

 

17.1

 

 

 

 

 

 

 

Auto finance

 

1,069,053

 

882,202

 

407,091

 

21.2

 

162.6

 

 

 

 

 

 

 

Other

 

26,827

 

25,099

 

27,610

 

6.9

 

(2.8

)

 

 

 

 

 

 

Total

 

 $

15,651,648

 

$

15,579,292

 

$

15,218,217

 

.5

 

2.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate

 

 $

6,402,612

 

$

6,430,685

 

$

6,729,254

 

(.4

)%

(4.9

)%

 $

6,462,677

 

$

6,789,026

 

(4.8

)%

Commercial

 

3,282,880

 

3,336,406

 

3,538,111

 

(1.6

)

(7.2

)

3,321,458

 

3,496,114

 

(5.0

)

Leasing and equipment finance

 

3,261,638

 

3,236,799

 

3,164,592

 

.8

 

3.1

 

3,232,873

 

3,146,345

 

2.8

 

Inventory finance

 

1,637,538

 

1,875,810

 

1,440,298

 

(12.7

)

13.7

 

1,731,022

 

1,392,828

 

24.3

 

Auto finance

 

973,418

 

823,102

 

367,271

 

18.3

 

165.0

 

823,316

 

226,092

 

N.M

.

Other

 

12,299

 

13,060

 

16,280

 

(5.8

)

(24.5

)

12,996

 

17,166

 

(24.3

)

Total

 

 $

15,570,385

 

$

15,715,862

 

$

15,255,806

 

(.9

)

2.1

 

 $

15,584,342

 

$

15,067,571

 

3.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N.M. Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·     Loans and leases were $15.7 billion at September 30, 2013, an increase of $433.4 million, or 2.8 percent, compared with September 30, 2012. Quarterly average loans and leases were $15.6 billion for the third quarter of 2013, an increase of $314.6 million, or 2.1 percent, compared with the third 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 the penetration of existing territories, as well as an increase in the inventory finance portfolio. These increases were partially offset by decreases in commercial loans, primarily due to payoffs in this low interest rate environment exceeding new originations, as well as decreases in consumer real estate loans driven by ongoing loan sales and run-off of first mortgages exceeding originations.

 

-more-

 



 

7

 

·     Loan and lease originations were $3.1 billion for the third quarter of 2013, an increase of $595.5 million, or 23.9 percent, compared with the third quarter of 2012. This increase was due to increased fundings in the inventory finance business, execution of strategies in the consumer business and continued growth within auto finance, partially offset by a decrease in leasing and equipment finance originations. Loan and lease originations decreased $94.8 million, or 3 percent, compared with the second quarter of 2013, due to low seasonal balances in the inventory finance portfolio and lower leasing and equipment finance originations, partially offset by continued growth within auto finance.

 

-more-

 



 

8

 

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.

(2) Excluding the effect of the consumer real estate non-accrual policy change would decrease the non-accrual loans and leases and other real estate owned balance by $48.6 million to $299.9 million.

 

 

 

 

 

·     Non-accrual loans and leases were $282.9 million at September 30, 2013, an increase of $4.4 million, or 1.6 percent, from June 30, 2013 and a decrease of $138.9 million, or 32.9 percent, from September 30, 2012. The increase from June 30, 2013 was primarily due to a change in the non-accrual policy for consumer real estate loans which resulted in an additional $48.6 million, primarily offset by a decrease in the commercial non-accrual balance of $39.8 million as the portfolio improves. The reduction from September 30, 2012 was primarily due to fewer non-accrual commercial and consumer real estate loans, which was the result of improved credit quality in those portfolios resulting in fewer loans entering non-accrual status, as well as the sale of $40.5 million of loans during the second quarter of 2013. The reduction was partially offset by the change in the non-accrual policy for consumer real estate loans.

 

-more-

 



 

9

 

·     Other real estate owned was $65.6 million at September 30, 2013, a decrease of $653 thousand from June 30, 2013 and a decrease of $54.8 million from September 30, 2012. The decrease from September 30, 2012 was primarily due to a portfolio sale of 184 consumer properties during the first quarter of 2013 and continued efforts to actively workout problem loans.

 

·     The over 60-day delinquency rate, excluding acquired portfolios and non-accrual loans and leases, at September 30, 2013 was .25 percent, down from .52 percent at June 30, 2013 and .67 percent at September 30, 2012. The decreases from June 30, 2013 and September 30, 2012 were primarily a result of reduced over 60-day delinquencies in the consumer real estate portfolio due to a change in the non-accrual policy.

 

·     Net charge-offs decreased $76.8 million from the third quarter of 2012. The decrease was primarily due to improved credit quality in the consumer real estate portfolio and the impact of the clarifying bankruptcy-related regulatory guidance implemented in the third quarter of 2012, as well as improved credit quality in the commercial portfolio and continued efforts to actively workout problem loans. Consumer real estate net charge-offs were down for the fourth consecutive quarter.

 

·     Provision for credit losses was $24.6 million for the third quarter of 2013, a decrease of $8 million from the second quarter of 2013 and a decrease of $71.7 million from the third quarter of 2012. The decrease from second quarter of 2013 was primarily due to decreased net charge-offs in the consumer real estate portfolio. The decrease from third quarter of 2012 was primarily due to decreased net charge-offs in the consumer real estate portfolio due to improved credit quality and the impact of the clarifying bankruptcy-related regulatory guidance implemented in the third quarter of 2012, as well as commercial portfolios due to improved credit quality and continued efforts to actively workout problem loans.

 

-more-

 



 

10

 

Deposits

 

Average Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 5

 

 

 

 

 

 

 

 

 

   Percent Change

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

3Q

 

2Q

 

3Q

 

3Q13 vs

 

3Q13 vs

 

YTD

 

YTD

 

Percent

 

 

 

2013

 

2013

 

2012

 

2Q13

 

3Q12

 

2013

 

2012

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

 $

4,833,196

 

$

4,884,433

 

$

4,582,088

 

(1.0

)%

5.5

 %

 $

4,834,368

 

$

4,594,572

 

5.2

 %

Savings

 

6,258,866

 

6,082,200

 

6,173,524

 

2.9

 

1.4

 

6,152,292

 

6,044,442

 

1.8

 

Money market

 

822,094

 

791,859

 

848,899

 

3.8

 

(3.2

)

809,800

 

753,486

 

7.5

 

Subtotal

 

11,914,156

 

11,758,492

 

11,604,511

 

1.3

 

2.7

 

11,796,460

 

11,392,500

 

3.5

 

Certificates

 

2,401,811

 

2,360,881

 

1,953,208

 

1.7

 

23.0

 

2,362,274

 

1,567,258

 

50.7

 

Total average deposits

 

 $

14,315,967

 

$

14,119,373

 

$

13,557,719

 

1.4

 

5.6

 

 $

14,158,734

 

$

12,959,758

 

9.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average interest rate on deposits (1)

 

.27%

 

.25%

 

.32%

 

 

 

 

 

.27%

 

.31%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·     Total average deposits for the third quarter of 2013 increased $758.2 million, or 5.6 percent, from the third quarter of 2012 and increased $196.6 million, or 1.4 percent, from the second quarter of 2013. The increase from the third quarter of 2012 was primarily due to special programs for certificates of deposit, as well as checking account growth. The increase from the second quarter of 2013 was primarily due to higher average savings balances, offset by lower average checking balances on a greater number of accounts.

 

·     The average interest rate on deposits in the third quarter of 2013 was .27 percent, down five basis points from the third quarter of 2012 and up two basis points from the second quarter of 2013. The decrease from the third quarter of 2012 was primarily due to declines in average interest rates on various savings accounts. The increase from second quarter of 2013 was due to increased balances in savings and money market accounts with higher rates.

 

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11

 

Non-interest Expense

 

Non-interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 6

 

 

 

 

 

 

 

 

 

 

Percent Change

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

3Q

 

2Q

 

3Q

 

3Q13 vs

 

3Q13 vs

 

 

YTD

 

YTD

 

Percent

 

 

 

 

2013

 

2013

 

2012

 

2Q13

 

3Q12

 

 

2013

 

2012

 

Change

 

Compensation and employee benefits

 

 

$

110,833

 

$

105,537

 

$

98,409

 

 

5.0

 %

12.6

 %

 

$

320,599

 

$

292,163

 

 

9.7

 %

Occupancy and equipment

 

 

33,253

 

33,062

 

33,006

 

 

.6

 

.7

 

 

99,190

 

97,983

 

 

1.2

 

FDIC insurance

 

 

8,102

 

8,362

 

6,899

 

 

(3.1

)

17.4

 

 

24,174

 

21,754

 

 

11.1

 

Operating lease depreciation

 

 

6,706

 

6,150

 

6,325

 

 

9.0

 

6.0

 

 

18,491

 

19,473

 

 

(5.0

)

Advertising and marketing

 

 

4,593

 

5,532

 

4,248

 

 

(17.0

)

8.1

 

 

15,857

 

12,269

 

 

29.2

 

Deposit account premiums

 

 

664

 

600

 

485

 

 

10.7

 

36.9

 

 

1,866

 

8,146

 

 

(77.1

)

Other

 

 

43,675

 

41,946

 

36,173

 

 

4.1

 

20.7

 

 

123,560

 

110,425

 

 

11.9

 

Core operating expenses

 

 

207,826

 

201,189

 

185,545

 

 

3.3

 

12.0

 

 

603,737

 

562,213

 

 

7.4

 

Loss on termination of debt

 

 

55

 

-

 

-

 

 

N.M

.

N.M

.

 

55

 

550,735

 

 

(100.0

)

Foreclosed real estate and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

repossessed assets, net

 

 

4,162

 

7,555

 

10,670

 

 

(44.9

)

(61.0

)

 

21,884

 

33,776

 

 

(35.2

)

Other credit costs, net

 

 

189

 

(228

)

593

 

 

N.M

.

(68.1

)

 

(876

)

1,781

 

 

N.M

.

Total non-interest expense

 

 

$

212,232

 

$

208,516

 

$

196,808

 

 

1.8

 

7.8

 

 

$

624,800

 

$

1,148,505

 

 

(45.6

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N.M. Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·     Compensation and employee benefits expense for the third quarter of 2013 increased $12.4 million, or 12.6 percent, from the third quarter of 2012 and increased $5.3 million, or 5 percent, from the second quarter of 2013. The increase from both periods 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 $6.5 million, or 61 percent, from the third quarter of 2012 and decreased $3.4 million, or 44.9 percent, from the second quarter of 2013. The decrease from the third quarter of 2012 was driven by reduced expenses related to fewer foreclosed properties in consumer and commercial. The decrease from the second quarter of 2013 was due to a reduction in write-downs of values of existing foreclosed real estate properties as a result of improved real estate property values.

 

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12

 

Capital

 

Capital Information

 

 

 

 

 

 

 

 

Table 7

 

At period end

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per-share data)

 

3Q

 

 

4Q

 

 

 

2013

 

 

2012

 

Total equity

$

1,941,243

 

 

 

$

1,876,643

 

 

 

Book value per common share

$

10.10

 

 

 

$

9.79

 

 

 

Tangible realized common equity to tangible assets (1)

 

7.99

 %

 

 

 

7.52

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk-based capital (2)

 

 

 

 

 

 

 

 

 

 

Tier 1

$

1,729,992

 

11.36

 %

$

1,633,336

 

11.09

 %

Total

 

2,071,454

 

13.61

 

 

2,007,835

 

13.63

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage capital

$

1,729,992

 

9.53

 %

$

1,633,336

 

9.21

 %

 

 

 

 

 

 

 

 

 

 

 

Tier 1 common capital (3)

$

1,453,474

 

9.55

 %

$

1,356,826

 

9.21

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes the impact of 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 October 21, 2013, the Board of Directors of TCF declared a regular quarterly cash dividend of 5 cents per common share payable on November 29, 2013, to stockholders of record at the close of business on November 15, 2013. TCF also declared dividends on the 7.50% Series A and 6.45% Series B Non-Cumulative Perpetual Preferred Stock, both payable on December 2, 2013, to stockholders of record at the close of business on November 15, 2013.

 

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13

 

Webcast Information

 

A live webcast of TCF’s conference call to discuss the third quarter earnings will be hosted at TCF’s website, http://ir.tcfbank.com, on October 25, 2013 at 8:00 a.m. CT. A slide presentation for the call will be available on the website prior to the call. Additionally, the webcast will be available for replay at TCF’s website after the conference call. The website also includes free access to company news releases, TCF’s annual report, investor presentations and SEC filings.

 

 

 

 

TCF is a Wayzata, Minnesota-based national bank holding company with $18.4 billion in total assets at  September 30, 2013. TCF has over 425 branches in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana, Arizona and South Dakota, providing retail and commercial banking services. TCF, through its subsidiaries, also conducts commercial leasing and equipment finance business in all 50 states, commercial inventory finance business in the U.S. and Canada, and indirect auto finance business in over 40 states. For more information about TCF, please visit http://ir.tcfbank.com.

 

 

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14

 

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 for the year ended December 31, 2012 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; changes to bankruptcy laws which would result in the loss of all or part of TCF’s security interest due to collateral value declines; deficiencies in TCF’s compliance under the Bank Secrecy Act in past or future periods, which may result in regulatory enforcement action including monetary penalties; increased health care costs resulting from Federal health care reform legislation; adverse regulatory examinations and resulting enforcement actions or other adverse consequences such as increased capital requirements or higher deposit insurance assessments; heightened regulatory practices, requirements or expectations, including, but not limited to, requirements related to the Bank Secrecy Act and anti-money laundering compliance activity.

 

Earnings/Capital Risks and Constraints, Liquidity Risks. Limitations on TCF’s ability to pay dividends or to increase dividends because of financial performance deterioration, regulatory restrictions or limitations; increased deposit insurance premiums, special assessments or other costs related to adverse conditions in the banking industry, the economic impact on banks of the Dodd-Frank Act and other regulatory reform legislation; the impact of financial

 

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15

 

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, 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-

 



 

16

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

 

 

 

Three Months Ended September 30,

 

Change

 

 

2013

 

2012

 

$

 

%

Interest income:

 

 

 

 

 

 

 

 

 

Loans and leases

 

  $

203,879

 

  $

210,140

 

  $

(6,261)

 

(3.0

)%

Securities available for sale

 

4,448

 

5,607

 

(1,159)

 

(20.7

)

Investments and other

 

7,126

 

4,105

 

3,021

 

73.6

 

Total interest income

 

215,453

 

219,852

 

(4,399)

 

(2.0

)

Interest expense:

 

 

 

 

 

 

 

 

 

Deposits

 

9,644

 

10,757

 

(1,113)

 

(10.3

)

Borrowings

 

6,182

 

8,536

 

(2,354)

 

(27.6

)

Total interest expense

 

15,826

 

19,293

 

(3,467)

 

(18.0

)

Net interest income

 

199,627

 

200,559

 

(932)

 

(.5

)

Provision for credit losses

 

24,602

 

96,275

 

(71,673)

 

(74.4

)

Net interest income after provision for credit losses

 

175,025

 

104,284

 

70,741

 

67.8

 

Non-interest income:

 

 

 

 

 

 

 

 

 

Fees and service charges

 

42,457

 

43,745

 

(1,288)

 

(2.9

)

Card revenue

 

13,167

 

12,927

 

240

 

1.9

 

ATM revenue

 

5,941

 

6,122

 

(181)

 

(3.0

)

Subtotal

 

61,565

 

62,794

 

(1,229)

 

(2.0

)

Leasing and equipment finance

 

29,079

 

20,498

 

8,581

 

41.9

 

Gains on sales of auto loans

 

7,140

 

7,486

 

(346)

 

(4.6

)

Gains on sales of consumer real estate loans

 

4,152

 

4,559

 

(407)

 

(8.9

)

Other

 

4,304

 

3,688

 

616

 

16.7

 

Fees and other revenue

 

106,240

 

99,025

 

7,215

 

7.3

 

(Losses) gains on securities, net

 

(80)

 

13,033

 

(13,113)

 

N.M

.

Total non-interest income

 

106,160

 

112,058

 

(5,898)

 

(5.3

)

Non-interest expense:

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

110,833

 

98,409

 

12,424

 

12.6

 

Occupancy and equipment

 

33,253

 

33,006

 

247

 

.7

 

FDIC insurance

 

8,102

 

6,899

 

1,203

 

17.4

 

Operating lease depreciation

 

6,706

 

6,325

 

381

 

6.0

 

Advertising and marketing

 

4,593

 

4,248

 

345

 

8.1

 

Deposit account premiums

 

664

 

485

 

179

 

36.9

 

Other

 

43,675

 

36,173

 

7,502

 

20.7

 

Subtotal

 

207,826

 

185,545

 

22,281

 

12.0

 

Loss on termination of debt

 

55

 

-

 

55

 

N.M

.

Foreclosed real estate and repossessed assets, net

 

4,162

 

10,670

 

(6,508)

 

(61.0

)

Other credit costs, net

 

189

 

593

 

(404)

 

(68.1

)

Total non-interest expense

 

212,232

 

196,808

 

15,424

 

7.8

 

Income before income tax expense

 

68,953

 

19,534

 

49,419

 

N.M

.

Income tax expense

 

24,551

 

6,304

 

18,247

 

N.M

.

Income after income tax expense

 

44,402

 

13,230

 

31,172

 

N.M

.

Income attributable to non-controlling interest

 

1,607

 

1,536

 

71

 

4.6

 

Net income attributable to TCF Financial Corporation

 

42,795

 

11,694

 

31,101

 

N.M

.

Preferred stock dividends

 

4,847

 

2,372

 

2,475

 

104.3

 

Net income available to common stockholders

 

  $

37,948

 

  $

9,322

 

  $

28,626

 

N.M

.

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

Basic

 

  $

.24

 

  $

.06

 

  $

.18

 

N.M

.

Diluted

 

.23

 

.06

 

.17

 

N.M

.

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

  $

.05

 

  $

.05

 

  $

-

 

-

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Basic

 

161,220

 

159,533

 

1,687

 

1.1

 

Diluted

 

162,184

 

160,016

 

2,168

 

1.4

 

 

 

 

 

 

 

 

 

 

 

N.M. Not meaningful.

 

 

 

 

 

 

 

 

 

 

-more-

 


 


 

17

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

 

 

 

Nine Months Ended September 30,

 

Change

 

 

 

2013

 

2012

 

$

 

%

 

Interest income:

 

 

 

 

 

 

 

 

 

 

Loans and leases

 

  $

615,459

 

  $

624,890

 

  $

(9,431)

 

(1.5

)%

 

Securities available for sale

 

13,880

 

30,535

 

(16,655)

 

(54.5

)

 

Investments and other

 

19,272

 

10,171

 

9,101

 

89.5

 

 

Total interest income

 

648,611

 

665,596

 

(16,985)

 

(2.6

)

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

Deposits

 

28,176

 

30,015

 

(1,839)

 

(6.1

)

 

Borrowings

 

19,673

 

56,625

 

(36,952)

 

(65.3

)

 

Total interest expense

 

47,849

 

86,640

 

(38,791)

 

(44.8

)

 

Net interest income

 

600,762

 

578,956

 

21,806

 

3.8

 

 

Provision for credit losses

 

95,576

 

198,923

 

(103,347)

 

(52.0

)

 

Net interest income after provision for credit losses

 

505,186

 

380,033

 

125,153

 

32.9

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

Fees and service charges

 

123,352

 

133,691

 

(10,339)

 

(7.7

)

 

Card revenue

 

38,854

 

39,664

 

(810)

 

(2.0

)

 

ATM revenue

 

17,274

 

18,597

 

(1,323)

 

(7.1

)

 

Subtotal

 

179,480

 

191,952

 

(12,472)

 

(6.5

)

 

Leasing and equipment finance

 

68,413

 

66,572

 

1,841

 

2.8

 

 

Gains on sales of auto loans

 

22,421

 

15,232

 

7,189

 

47.2

 

 

Gains on sales of consumer real estate loans

 

16,347

 

4,559

 

11,788

 

N.M

.

 

Other

 

12,065

 

9,211

 

2,854

 

31.0

 

 

Fees and other revenue

 

298,726

 

287,526

 

11,200

 

3.9

 

 

(Losses) gains on securities, net

 

(80)

 

102,760

 

(102,840)

 

N.M

.

 

Total non-interest income

 

298,646

 

390,286

 

(91,640)

 

(23.5

)

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

320,599

 

292,163

 

28,436

 

9.7

 

 

Occupancy and equipment

 

99,190

 

97,983

 

1,207

 

1.2

 

 

FDIC insurance

 

24,174

 

21,754

 

2,420

 

11.1

 

 

Operating lease depreciation

 

18,491

 

19,473

 

(982)

 

(5.0

)

 

Advertising and marketing

 

15,857

 

12,269

 

3,588

 

29.2

 

 

Deposit account premiums

 

1,866

 

8,146

 

(6,280)

 

(77.1

)

 

Other

 

123,560

 

110,425

 

13,135

 

11.9

 

 

Subtotal

 

603,737

 

562,213

 

41,524

 

7.4

 

 

Loss on termination of debt

 

55

 

550,735

 

(550,680)

 

(100.0

)

 

Foreclosed real estate and repossessed assets, net

 

21,884

 

33,776

 

(11,892)

 

(35.2

)

 

Other credit costs, net

 

(876)

 

1,781

 

(2,657)

 

N.M

.

 

Total non-interest expense

 

624,800

 

1,148,505

 

(523,705)

 

(45.6

)

 

Income (loss) before income tax expense (benefit)

 

179,032

 

(378,186)

 

557,218

 

N.M

.

 

Income tax expense (benefit)

 

61,554

 

(143,398)

 

204,952

 

N.M

.

 

Income (loss) after income tax expense (benefit)

 

117,478

 

(234,788)

 

352,266

 

N.M

.

 

Income attributable to non-controlling interest

 

5,805

 

4,881

 

924

 

18.9

 

 

Net income (loss) attributable to TCF Financial Corporation

 

111,673

 

(239,669)

 

351,342

 

N.M

.

 

Preferred stock dividends

 

14,218

 

2,372

 

11,846

 

N.M

.

 

Net income (loss) available to common stockholders

 

  $

97,455

 

  $

(242,041)

 

  $

339,496

 

N.M

.

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common share:

 

 

 

 

 

 

 

 

 

 

Basic

 

  $

.61

 

  $

(1.52)

 

  $

2.13

 

N.M

.

 

Diluted

 

.60

 

(1.52)

 

2.12

 

N.M

.

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

  $

.15

 

  $

.15

 

  $

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

Basic

 

160,838

 

159,052

 

1,786

 

1.1

 

 

Diluted

 

161,694

 

159,052

 

2,642

 

1.7

 

 

 

 

 

 

 

 

 

 

 

 

 

N.M. Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

-more-

 



 

18

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

(Dollars in thousands)

 

(Unaudited)

 

 

 

Three Months Ended September 30,

 

Change

 

 

 

2013

 

2012

 

$

 

%

 

Net income attributable to TCF Financial Corporation

 

  $

42,795

 

  $

11,694

 

  $

31,101

 

N.M.

%

Other comprehensive income:

 

 

 

 

 

 

 

 

 

Reclassification adjustment for securities gains included in net income

 

-

 

(12,912)

 

12,912

 

(100.0)

 

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

 

850

 

16,283

 

(15,433)

 

(94.8)

 

Foreign currency hedge

 

(647)

 

(630)

 

(17)

 

(2.7)

 

Foreign currency translation adjustment

 

615

 

640

 

(25)

 

(3.9)

 

Recognized postretirement prior service cost and transition obligation

 

(11)

 

(7)

 

(4)

 

(57.1)

 

Income tax expense

 

(72)

 

(1,010)

 

938

 

92.9

 

Total other comprehensive income

 

735

 

2,364

 

(1,629)

 

(68.9)

 

Comprehensive income

 

  $

43,530

 

  $

14,058

 

  $

29,472

 

N.M.

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

Change

 

 

 

2013

 

2012

 

$

 

%

 

Net income (loss) attributable to TCF Financial Corporation

 

  $

111,673

 

  $

(239,669)

 

  $

351,342

 

N.M.

%

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

Reclassification adjustment for securities gains included in net income

 

-

 

(89,879)

 

89,879

 

(100.0)

 

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

 

(47,399)

 

28,383

 

(75,782)

 

N.M.

 

Foreign currency hedge

 

764

 

(766)

 

1,530

 

N.M.

 

Foreign currency translation adjustment

 

(980)

 

701

 

(1,681)

 

N.M.

 

Recognized postretirement prior service cost and transition obligation

 

(35)

 

(21)

 

(14)

 

(66.7)

 

Income tax benefit

 

17,609

 

22,823

 

(5,214)

 

(22.8)

 

Total other comprehensive loss

 

(30,041)

 

(38,759)

 

8,718

 

22.5

 

Comprehensive income (loss)

 

  $

81,632

 

  $

(278,428)

 

  $

360,060

 

N.M.

 

 

N.M.  Not meaningful.

 

-more-

 



 

19

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in thousands, except per-share data)

(Unaudited)

 

 

 

At Sep. 30,

 

At Dec. 31,

 

Change

 

 

 

2013

 

2012

 

$

 

%

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

983,846

 

$

1,100,347

 

$

(116,501)

 

(10.6

)  %

 

Investments

 

101,950

 

120,867

 

(18,917)

 

(15.7

)

 

Securities available for sale

 

631,677

 

712,091

 

(80,414)

 

(11.3

)

 

Loans and leases held for sale

 

170,699

 

10,289

 

160,410

 

N.M

.

 

Loans and leases:

 

 

 

 

 

 

 

 

 

 

Consumer real estate

 

6,415,632

 

6,674,501

 

(258,869)

 

(3.9

)

 

Commercial

 

3,137,088

 

3,405,235

 

(268,147)

 

(7.9

)

 

Leasing and equipment finance

 

3,286,506

 

3,198,017

 

88,489

 

2.8

 

 

Inventory finance

 

1,716,542

 

1,567,214

 

149,328

 

9.5

 

 

Auto finance

 

1,069,053

 

552,833

 

516,220

 

93.4

 

 

Other loans and leases

 

26,827

 

27,924

 

(1,097)

 

(3.9

)

 

Total loans and leases

 

15,651,648

 

15,425,724

 

225,924

 

1.5

 

 

Allowance for loan and lease losses