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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):  April 21, 2011

 


 

 

TCF FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

 


 

Delaware

 

001-10253

 

41-1591444

(State or other jurisdiction of

 

(Commission File Number)

 

(IRS Employer Identification No.)

incorporation or organization)

 

 

 

 

 

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

(Address of principal executive offices)

 

(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:

 

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

 

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

 

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

 

o   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 April 21, 2011, attached to this Form 8-K as Exhibit 99.1, announcing its results of operations for the quarter ended March 31, 2011.

 

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 9.01  Financial Statements and Exhibits.

 

(d)         Exhibits.

 

Exhibit No.

Description

 

 

99.1

Earnings Release of TCF Financial Corporation, dated April 21, 2011

 

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/ Thomas F. Jasper

 

 

Thomas F. Jasper, Executive Vice President and

Chief Financial Officer

(Principal Financial Officer)

 

 

 

 

 

/s/ David M. Stautz

 

 

David M. Stautz, Senior Vice President,

Controller and Assistant Treasurer

(Principal Accounting Officer)

 

Dated:    April 21, 2011

 

3

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

 

Exhibit 99.1

 

NEWS RELEASE

 

 

CONTACT:

Jason Korstange

 

 

(952) 745-2755

 

 

 

 

 

www.tcfbank.com

 

 

 

 

FOR IMMEDIATE RELEASE

 

 

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

 

TCF Reports 64th Consecutive Quarter of Net Income – Earns $.20 Per Share

 

FIRST QUARTER HIGHLIGHTS

·                  Diluted earnings per common share of 20 cents

·                  Net income of $29.7 million

·                  Net interest margin of 4.06 percent

·                  Average deposits increased $257.3 million, or 2.2 percent, from the fourth quarter of 2010

·                  Over 60-day delinquency rate decreased 10 bps from December 31, 2010

·                  Total non-performing assets decreased $25.1 million, or 5.2 percent, from December 31, 2010

·                  Completed a $230 million common stock public offering

·                  Announced quarterly cash dividend of 5 cents per common share, payable May 31, 2011

 

Earnings Summary

 

Table 1

 

($ in thousands, except per-share data)

 

 

 

 

 

 

 

Percent Change

 

 

 

1Q
2011

 

4Q
2010

 

1Q
2010

 

1Q11 vs
4Q10

 

1Q11 vs
1Q10

 

Net income

 

$29,686

 

$30,725

 

$33,921

 

    (3.4) %

 

    (12.5) %

 

Diluted earnings per common share

 

.20

 

.22

 

.26

 

(9.1)

 

(23.1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Ratios(1)

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

.66  

%

.68  

%

.76  

%

 

 

 

 

Return on average common equity

 

7.84  

 

8.25  

 

10.68  

 

 

 

 

 

Net interest margin

 

4.06  

 

4.05  

 

4.21  

 

 

 

 

 

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

 

1.51  

 

1.75  

 

1.22  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

-more-

 


 

2

 

WAYZATA, MN, April 21, 2011 – TCF Financial Corporation (“TCF”) (NYSE: TCB) today reported diluted earnings per common share of 20 cents for the first quarter of 2011, compared with 26 cents in the first quarter of 2010.  Net income for the first quarter of 2011 was $29.7 million, compared with $33.9 million in the first quarter of 2010.

 

TCF declared a quarterly cash dividend of five cents per common share payable on May 31, 2011 to stockholders of record at the close of business on April 29, 2011.

 

Chairman’s Statement

 

“TCF’s 64th consecutive quarter of profitability was highlighted by significant credit quality improvements including decreases in non-performing assets, net charge-offs and delinquencies. In fact, delinquencies, a leading indicator, have fallen to levels not seen in the last couple of years,” said William A. Cooper, TCF Chairman and Chief Executive Officer.  “In addition to these positive signs on the credit quality front, we are also pleased with the support shown by members of Congress, bank regulators, banks and other non-financial organizations and consumer advocacy groups in favor of the bipartisan bills introduced by the Senate and House of Representatives to delay and study the impact of the Durbin Amendment.  The outcome of the debit card interchange issue is uncertain but we remain optimistic that a favorable outcome can be achieved.”

 

-more-

 


 

3

 

Total Revenue

 

Table 2

 

 

 

 

 

 

 

 

 

Percent Change

 

($ in thousands)

 

 

1Q
2011

 

4Q
2010

 

1Q
2010

 

1Q11 vs
4Q10

 

1Q11 vs
1Q10

 

Net interest income

 

$174,040

 

$174,286

 

$174,662 

 

(.1

) %

 

(.4

) %

 

Fees and other revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees and service charges

 

53,513

 

61,480

 

66,172 

 

(13.0

)

 

(19.1

)

 

Card revenue

 

26,584

 

27,625

 

27,072 

 

(3.8

)

 

(1.8

)

 

ATM revenue

 

6,705

 

6,985

 

7,022 

 

(4.0

)

 

(4.5

)

 

Total banking fees

 

86,802

 

96,090

 

100,266 

 

(9.7

)

 

(13.4

)

 

Leasing and equipment finance

 

26,750

 

23,402

 

20,352 

 

14.3

 

 

31.4

 

 

Other

 

694

 

817

 

2,455 

 

(15.1

)

 

(71.7

)

 

Total fees and other revenue

 

114,246

 

120,309

 

123,073 

 

(5.0

)

 

(7.2

)

 

Subtotal

 

288,286

 

294,595

 

297,735 

 

(2.1

)

 

(3.2

)

 

Gains (losses) on securities, net

 

-

 

21,185

 

(430)

 

(100.0

)

 

100.0

 

 

Total revenue

 

$288,286

 

$315,780

 

$297,305 

 

(8.7

)

 

(3.0

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin(1) 

 

4.06

%

4.05

%

4.21

%

 

 

 

 

Fees and other revenue as a % of total revenue

 

39.63

 

38.10

 

41.40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

·                  The slight decrease in net interest income from the first quarter of 2010 was primarily due to repositioning the mix of higher yielding fixed-rate consumer real estate loans to lower yielding variable-rate consumer real estate loans. This was partially offset by growth in the higher-yielding inventory finance portfolio and lower average cost of savings deposits and long-term borrowings.

 

·                  Net interest margin in the first quarter of 2011 was 4.06 percent, compared with 4.21 percent in the first quarter of 2010 and 4.05 percent in the fourth quarter of 2010. The decrease in net interest margin from the first quarter of 2010 was primarily due to increased asset liquidity and lower yielding loans and leases as a result of the lower interest rate environment and the mix of fixed- and variable- rate consumer loans, partially offset by lower average cost of deposits and long-term borrowings.

 

·                  During the first quarter of 2011, TCF increased its asset liquidity, including interest-bearing deposits held at the Federal Reserve and unencumbered securities, to $836 million, an increase of $413 million from the first quarter of 2010 and an increase of $329 million from the fourth quarter of 2010.

 

·                  TCF has been repositioning its balance sheet for an eventual increase in interest rates. While this has negatively impacted the net interest margin rate in the short term, TCF’s balance sheet was in an asset sensitive position, based on TCF’s interest rate gap assumptions, of 5.4 percent of total assets as of March 31, 2011, up from an asset sensitive position of 2.8 percent of total assets as of December 31, 2010.

 

-more-

 


 

4

 

Non-interest Income

 

·                  Banking fees and service charges in the first quarter of 2011 were $53.5 million, down $12.7 million, or 19.1 percent, from the first quarter of 2010 and down $8 million, or 13 percent, from the fourth quarter of 2010.  The decrease in banking fees and services charges from the first quarter of 2010 was primarily due to decreased activity-based fee revenue as a result of a change in overdraft fee regulations in the third quarter of 2010 and a decrease in the number of checking accounts, partially offset by monthly service fee income as TCF began new monthly account fees in March 2010. The decrease in banking fees and service charges from the fourth quarter of 2010 was primarily due to customers maintaining higher average deposit balances, lower seasonal activity and lower monthly maintenance fees as more customers qualified for fee waivers.

 

·                  Card revenues were $26.6 million in the first quarter of 2011, down $488 thousand, or 1.8 percent, from the first quarter of 2010 and down $1 million, or 3.8 percent, from the fourth quarter of 2010. The decrease in card revenue from the first quarter of 2010 was primarily attributable to a decrease in volume, partially offset by an increase in average spending per account.  The decrease in card revenue from the fourth quarter of 2010 was primarily due to seasonal decreases in sales volume.

 

·                  Leasing and equipment revenues were $26.8 million in the first quarter of 2011, up $6.4 million, or 31.4 percent, from the first quarter of 2010 and up $3.3 million, or 14.3 percent, from the fourth quarter of 2010. The increase from both the first and fourth quarters of 2010 was due to customer initiated lease activity.

 

-more-

 


 

5

 

Loans and Leases

 

Average Loans and Leases

 

Table 3

 

 

 

 

 

 

 

 

 

Percent Change

 

($ in thousands)

 

 

1Q
 2011

 

4Q
 2010

 

1Q
 2010

 

1Q11 vs
4Q10

 

1Q11 vs
1Q10

 

Consumer real estate

 

 

 

 

 

 

 

 

 

 

 

First mortgage lien

 

$4,863,679

 

$4,924,399

 

$4,946,473

 

(1.2

) %

 

(1.7

) %

 

Junior lien

 

2,238,280

 

2,272,857

 

2,312,332

 

(1.5

)

 

(3.2

)

 

Total

 

7,101,959

 

7,197,256

 

7,258,805

 

(1.3

)

 

(2.2

)

 

Consumer other

 

21,757

 

23,283

 

30,406

 

(6.6

)

 

(28.4

)

 

Total consumer

 

7,123,716

 

7,220,539

 

7,289,211

 

(1.3

)

 

(2.3

)

 

Commercial

 

3,623,463

 

3,650,906

 

3,702,235

 

(.8

)

 

(2.1

)

 

Leasing and equipment finance

 

3,119,669

 

3,155,472

 

3,043,664

 

(1.1

)

 

2.5

 

 

Inventory finance

 

872,785

 

803,157

 

553,095

 

8.7

 

 

57.8

 

 

Total

 

$14,739,633

 

$14,830,074

 

$14,588,205

 

(.6

)

 

1.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·                  Average consumer real estate loan balances decreased $156.8 million, or 2.2 percent, from the first quarter of 2010 and decreased $95.3 million, or 1.3 percent, from the fourth quarter of 2010.  Decreases from both periods reflect low consumer demand for financing.

 

·                  Variable-rate consumer real estate loans increased $396.2 million from March 31, 2010 and $44.7 million from December 31, 2010, while fixed-rate consumer real estate loans decreased $553 million from March 31, 2010 and $140 million from December 31, 2010. Variable-rate loans comprised 33.6 percent of total consumer real estate loans at March 31, 2011, up from 27.9 percent at March 31, 2010 and 33 percent at December 31, 2010.

 

·                  At March 31, 2011, 74.1 percent of the consumer real estate loan portfolio was secured by first liens.

 

·                  Average commercial loan balances in the first quarter of 2011 decreased $78.8 million, or 2.1 percent, from the first quarter of 2010 and decreased $27.4 million, or .8 percent, from the fourth quarter of 2010.  The decreases for both periods were primarily due to higher levels of repayments, partially offset by an increase in loan originations of $8.8 million, or 18 percent, and $6.5 million, or 12.6 percent, from the first and fourth quarters of 2010, respectively.

 

·                  Originations of leasing and equipment finance loans and leases for the quarter ended March 31, 2011 increased $43.4 million, or 16.2 percent, from the quarter ended March 31, 2010.  The backlog of approved transactions was $429.6 million at March 31, 2011, compared with $402.6 million at December 31, 2010 and $361.6 million at March 31, 2010.

 

-more-


 

6

 

·                  Average inventory finance loans in the first quarter of 2011 increased $319.7 million, or 57.8 percent, from the first quarter of 2010 and increased $69.6 million, or 8.7 percent, from the fourth quarter of 2010.  The increase from the first quarter of 2010 was primarily due to TCF’s entrance into the power sports industry in the third quarter of 2010.  The increase from the fourth quarter of 2010 was primarily due to seasonal growth in the lawn and garden programs. As of March 31, 2011, inventory finance loans totaled $1 billion.

 

Credit Quality

 

 

·      Favorable trends in credit quality are highlighted by the fact that the first quarter of 2011 was the first time in two years that the level of non-accrual loans and leases, net charge-offs and over 60-day delinquencies all decreased over the prior quarter.

 

 


 

7

 

 

 

Credit Quality Summary of Performing and Underperforming Loans and Leases

 

Table 5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

60+ Days

 

 

 

Non-accrual

 

 

 

(In thousands)

 

Performing Loans and Leases

 

Delinquent and

 

Accruing

 

Loans and

 

Total Loans

 

March 31, 2011:

 

Non-classified

 

Classified(1)

 

Total

 

Accruing(2)

 

TDRs

 

Leases

 

and Leases

 

Consumer real estate and other

 

$   6,532,544

 

$            -

 

$   6,532,544

 

$ 67,409

 

$ 341,989

 

$ 155,233

 

$   7,097,175

 

Commercial

 

3,053,296

 

407,978

 

3,461,274

 

1,864

 

17,473

 

127,745

 

3,608,356

 

Leasing and equipment finance

 

3,001,249

 

34,443

 

3,035,692

 

9,640

 

-

 

34,634

 

3,079,966

 

Inventory finance

 

1,005,837

 

3,496

 

1,009,333

 

274

 

-

 

1,437

 

1,011,044

 

Total loans and leases

 

$ 13,592,926

 

$ 445,917

 

$ 14,038,843

 

$ 79,187

 

$ 359,462

 

$ 319,049

 

$ 14,796,541

 

Percent of total loans and leases

 

91.9

%

3.0

%

94.9

%

.5

%

2.4

%

2.2

%

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

60+ Days

 

 

 

Non-accrual

 

 

 

 

 

Performing Loans and Leases

 

Delinquent and

 

Accruing

 

Loans and

 

Total Loans

 

December 31, 2010:

 

Non-classified

 

Classified(1)

 

Total

 

Accruing(2)

 

TDRs

 

Leases

 

and Leases

 

Consumer real estate and other

 

$   6,613,610

 

$            -

 

$   6,613,610

 

$ 76,711

 

$ 337,401

 

$ 167,547

 

$   7,195,269

 

Commercial

 

3,091,911

 

354,185

 

3,446,096

 

9,021

 

48,838

 

142,248

 

3,646,203

 

Leasing and equipment finance

 

3,073,347

 

35,695

 

3,109,042

 

11,029

 

-

 

34,407

 

3,154,478

 

Inventory finance

 

785,245

 

5,710

 

790,955

 

344

 

-

 

1,055

 

792,354

 

Total loans and leases

 

$ 13,564,113

 

$ 395,590

 

$ 13,959,703

 

$ 97,105

 

$ 386,239

 

$ 345,257

 

$ 14,788,304

 

Percent of total loans and leases

 

91.7

%

2.7

%

94.4

%

.7

%

2.6

%

2.3

%

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes classified loans and leases that are 60+ days delinquent or accruing TDRs.

 

(2) Excludes accruing TDRs that are 60+ days delinquent.

 

 

 

 

·      For the quarter ended March 31, 2011, the combined balance of performing classified loans and leases, over 60-day delinquent and accruing loans and leases, accruing TDRs and non-accrual loans and leases decreased $20.6 million from the fourth quarter of 2010. This was primarily due to a decrease in inflows of new non-accrual loans and leases.

 

At March 31, 2011:

 

·      Performing classified commercial loans increased $53.8 million from December 31, 2010 as $34.9 million of loans were removed from accruing TDR status but remained classified in the quarter and $5.1 million of loans over 60 days delinquent became current but remained classified during the quarter. The remainder of the net increase was primarily in Michigan.

 

·                  Over 60-day delinquency rate was .69 percent, down from .82 percent at March 31, 2010 and down from .79 percent at December 31, 2010. The decrease from the first quarter of 2010 was primarily due to decreases in consumer and leasing and equipment finance delinquencies. The decrease from the fourth quarter of 2010 was primarily due to decreases in both commercial and consumer delinquencies.

 

·                  Non-accrual loans and leases increased $13.6 million, or 4.5 percent, from March 31, 2010 and decreased $26.2 million, or 7.6 percent, from December 31, 2010. The increase from the first quarter of 2010 was due primarily to increases in commercial loans placed on non-accrual status throughout 2010, partially offset by decreases in leasing and equipment finance loans placed on non-accrual status. The decrease from the fourth

 

-more-

 


 

8

 

quarter of 2010 was primarily due to a decrease in commercial loans placed on non-accrual status during the first quarter of 2011 and an increase in consumer real estate loans that returned to accrual status during the same period.

 

Allowance for Loan and Lease Losses

 

Allowance for Loan and Lease Losses

 

 

 

 

 

 

 

Table 6

 

 

 

 

 

 

 

 

 

Percent Change

 

($ in thousands)

 

1Q
2011

 

4Q
2010

 

1Q
2010

 

1Q11 vs
4Q10

 

1Q11 vs
1Q10

 

Allowance for Loan and Lease Losses

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

265,819

 

$

253,120

 

$

244,471

 

5.0 %   

 

8.7 %   

 

Charge-offs

 

(61,104

)

(69,913

)

(50,551

)

(12.6)      

 

20.9       

 

Recoveries

 

5,292

 

4,966

 

6,019

 

6.6       

 

(12.1)      

 

Net charge-offs

 

(55,812

)

(64,947

)

(44,532

)

(14.1)      

 

25.3       

 

Provision for credit losses

 

45,274

 

77,646

 

50,491

 

(41.7)      

 

(10.3)      

 

Other

 

27

 

-

 

-

 

N.M.       

 

N.M.       

 

Balance at end of period

 

$

255,308

 

$

265,819

 

$

250,430

 

(4.0)      

 

1.9       

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Charge-Offs as a Percentage of
Average Loans and Leases
(1)

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate and other:

 

 

 

 

 

 

 

 

 

 

 

First mortgage lien

 

1.81

%

1.88

%

1.32

%

(7) bps

 

49 bps

 

Junior lien

 

2.39

 

2.37

 

2.25

 

2        

 

14       

 

Total consumer real estate

 

1.99

 

2.04

 

1.61

 

(5)       

 

38       

 

Total consumer real estate and other

 

1.97

 

2.10

 

1.63

 

(13)       

 

34       

 

Commercial

 

1.96

 

2.04

 

.85

 

(8)       

 

111       

 

Leasing and equipment finance

 

.36

 

.99

 

.87

 

(63)       

 

(51)      

 

Inventory finance

 

.10

 

.28

 

.31

 

(18)       

 

(21)      

 

Total

 

1.51

 

1.75

 

1.22

 

(24)       

 

29       

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance as a percentage of period end loans and leases

 

1.73

%

1.80

%

1.70

%

 

 

 

 

Ratio of allowance to net charge-offs(1)

 

1.1

X

1.0

X

1.4

X

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N.M. = Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

(1) Annualized.

 

 

 

 

 

 

 

 

 

 

 

 

At March 31, 2011:

 

·                  Allowance for loan and lease losses was $255.3 million, or 1.73 percent of loans and leases, compared with $250.4 million, or 1.70 percent, at March 31, 2010 and $265.8 million, or 1.80 percent, at December 31, 2010. The decrease in the allowance in the first quarter of 2011 was due to charge-offs of commercial loans that previously had specific reserves established.

 

For the quarter ended March 31, 2011:

 

·              Provision for credit losses was $45.3 million, down from $50.5 million in the first quarter of 2010 and down from $77.6 million recorded in the fourth quarter of 2010. The decrease from the first quarter of 2010 was primarily due to decreased charge-offs and reserves in the leasing and equipment finance portfolio, primarily in the small ticket and middle market segments, as the economic conditions continue to improve in these

 

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9

 

areas. The decrease from the fourth quarter of 2010 was primarily due to decreased commercial real estate charge-offs, partially offset by increased commercial business charge-offs.

 

·                  Net loan and lease charge-offs were $55.8 million, or 1.51 percent, annualized, of average loans and leases, up from $44.5 million, or 1.22 percent, annualized, in the first quarter of 2010 and down from $64.9 million, or 1.75 percent, annualized, in the fourth quarter of 2010. The increase from the first quarter of 2010 was due primarily to increases in commercial loan charge-offs. The decrease from the fourth quarter of 2010 was due primarily to decreases in leasing and equipment finance charge-offs, primarily in the small ticket and middle market segments, as the economic conditions continue to improve in these areas.

 

Deposits

 

Average Deposits

 

 

 

 

 

 

 

 

Table 7

 

 

 

 

 

 

 

 

 

 

Percent Change

 

($ in thousands)

 

1Q
2011

 

4Q
2010

 

1Q
2010

 

 

1Q11 vs
4Q10

 

1Q11 vs
1Q10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$

4,501,931

 

$

4,358,771

 

$

4,406,807

 

 

    3.3 %

 

    2.2 %

 

Savings

 

5,444,381

 

5,412,094

 

5,363,268

 

 

  .6

 

1.5

 

Money market

 

673,503

 

643,801

 

668,581

 

 

4.6

 

  .7

 

Subtotal

 

10,619,815

 

10,414,666

 

10,438,656

 

 

2.0

 

1.7

 

Certificates

 

1,092,537

 

1,040,348

 

1,127,149

 

 

5.0

 

(3.1)

 

Total deposits

 

$

11,712,352

 

$

11,455,014

 

$

11,565,805

 

 

2.2

 

1.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average interest rate on deposits

 

.42%

 

.46%

 

.62%

 

 

 

 

 

 

 

·                  Total average deposits increased $257.3 million from the fourth quarter of 2010 primarily due to various targeted marketing campaigns as well as some seasonal increases in checking and savings accounts. Total average deposits increased $146.5 million from the first quarter of 2010 primarily due to increases in average balance per retail checking account and increases in number and average balance per retail savings account.

 

·                  The average interest cost of deposits in the first quarter of 2011 was .42 percent, down 20 basis points from the first quarter of 2010 and down 4 basis points from the fourth quarter of 2010.  Declines in the average interest cost of deposits were primarily due to pricing strategies on certain deposit products, mix changes and lower market interest rates.  The weighted average interest rate on deposits was .41 percent at March 31, 2011.

 

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10

 

Non-interest Expense

 

Non-interest Expense

 

 

 

 

 

 

 

 

 

 

Table 8

 

 

 

 

 

 

 

 

 

 

Percent Change

 

($ in thousands)

 

1Q
2011

 

4Q
2010

 

1Q
2010

 

 

1Q11 vs
4Q10

 

1Q11 vs
1Q10

 

Compensation and

 

 

 

 

 

 

 

 

 

 

 

 

employee benefits

 

$   90,273

 

$   87,371

 

$   88,225

 

 

    3.3 %

 

    2.3 %

 

Occupancy and equipment

 

32,159

 

30,968

 

32,181

 

 

3.8

 

  (.1)

 

FDIC insurance

 

7,195

 

7,398

 

5,481

 

 

(2.7)

 

31.3  

 

Deposit account premiums

 

3,198

 

1,688

 

6,798

 

 

89.5  

 

(53.0)  

 

Advertising and marketing

 

3,160

 

3,154

 

2,820

 

 

  .2

 

12.1  

 

Other

 

34,566

 

37,309

 

34,410

 

 

(7.4)

 

  .5

 

Core operating expenses

 

170,551

 

167,888

 

169,915

 

 

1.6

 

  .4

 

Foreclosed real estate and

 

 

 

 

 

 

 

 

 

 

 

 

repossessed assets, net

 

12,868

 

12,781

 

9,260

 

 

  .7

 

39.0  

 

Operating lease depreciation

 

7,928

 

8,289

 

10,040

 

 

(4.4)

 

(21.0)  

 

Other credit costs, net

 

2,548

 

1,542

 

2,587

 

 

65.2  

 

(1.5)

 

Total non-interest expense

 

$ 193,895

 

$ 190,500

 

$ 191,802

 

 

1.8

 

1.1

 

N.M. = Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

 

·                  Compensation and employee benefits expense in the first quarter of 2011 increased $2 million, or 2.3 percent from the first quarter of 2010, and $2.9 million, or 3.3 percent, from the fourth quarter of 2010. The increase from the first quarter of 2010 was primarily due to production related compensation and an increase in payroll tax rates. The increase over the fourth quarter was primarily due to higher seasonal payroll tax expenses.

 

·                  FDIC insurance increased $1.7 million, or 31.3 percent, from the first quarter of 2010. The increase over the first quarter of 2010 was primarily due to higher deposit insurance rates and deposit growth. The Dodd-Frank Act required changes to a number of components of the FDIC insurance assessment, which were implemented on April 1, 2011 by the FDIC. As a result of these changes, TCF’s FDIC insurance is expected to increase over 2010 by approximately $15 million beginning in the second quarter of 2011.

 

·                  Other non-interest expense increased $156 thousand, or .5 percent, from the first quarter of 2010, and decreased $2.7 million, or 7.4 percent, from the fourth quarter of 2010.  The decrease from the fourth quarter of 2010 was primarily attributable to the reduction of consulting fees related to the administration of the company’s Bank Secrecy Act program, partially offset by increased legal costs including costs associated with the constitutional challenge of the Durbin Amendment of the Dodd-Frank Act by TCF.

 

·                  Foreclosed real estate and repossessed asset expenses increased $3.6 million, or 39 percent, from the first quarter of 2010 and was relatively flat with the fourth quarter of 2010. The increase from the first quarter of

 

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11

 

2010 was primarily due to an increase in the number of consumer real estate properties owned and the related expenses, continued valuation writedowns on both consumer and commercial real estate properties and increased property tax expenses.

 

Income Taxes

 

·                  Income tax expense was $18.4 million for the first quarter of 2011, or 37.5 percent of pre-tax income, compared with $20.8 million, or 37.8 percent of pre-tax income, for the first quarter of 2010 and $16 million, or 33.6 percent of pre-tax income, for the fourth quarter of 2010. The effective tax rate for the fourth quarter of 2010 included the effects of a year-to-date change in the annual effective income tax of $1.3 million, or 55 basis points. Excluding this change, the fourth quarter 2010 effective income tax rate would have been 37.7 percent.

 

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12

 

Capital and Borrowing Capacity

 

Capital Information

 

 

 

 

 

 

 

Table 9

 

At period end

 

 

 

 

 

 

 

 

 

($ in thousands, except per-share data)

 

1Q
2011

 

4Q
2010

 

Total equity

 

$1,724,484

 

 

 

$1,480,163

 

 

 

Total equity to total assets

 

9.22

 %

 

 

8.02

 %

 

 

Book value per common share

 

$       10.74

 

 

 

$       10.30

 

 

 

Tangible realized common equity to tangible assets(1)

 

8.61

 %

 

 

7.37

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk-based capital

 

 

 

 

 

 

 

 

 

Tier 1

 

$1,732,554

 

    12.41 %

 

$1,475,525

 

    10.59 %

 

Total

 

2,040,714

 

14.62

 

1,808,412

 

12.98

 

Excess over stated “10% well-capitalized” requirement

 

644,539

 

  4.62

 

415,502

 

  2.98

 

 

 

 

 

 

 

 

 

 

 

Tier 1 common capital(2)

 

$1,601,014

 

    11.47 %

 

$1,352,025

 

    9.71 %

 

 

 

 

 

 

 

 

 

 

 

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

 

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

 

 

·                  In March of 2011, TCF completed a public offering of common stock which raised net proceeds of $219.7 million through the issuance of 15,081,968 common shares at $15.25 per share. As a result, TCF repaid its senior unsecured note at the holding company and has invested the remaining proceeds on a short-term basis in anticipation of calling its trust preferred securities upon the occurrence of a capital treatment event later in 2011.

 

·                  Total risk-based capital at March 31, 2011 of $2 billion, or 14.62 percent of risk-weighted assets, was $644.5 million in excess of the stated “10 percent well-capitalized” requirement.

 

·                  On April 18, 2011, the Board of Directors of TCF declared a regular quarterly cash dividend of five cents per common share payable on May 31, 2011 to stockholders of record at the close of business on April 29, 2011.

 

·                  On April 1, 2011, the FHLB Des Moines changed its pledged collateral guidelines for all member banks. The impact to TCF was a $172 million reduction of unused borrowing capacity at the FHLB Des Moines to $1.7 billion at April 1, 2011.

 

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13

 

Website Information

 

A live webcast of TCF’s conference call to discuss first quarter earnings will be hosted at TCF’s website, ir.tcfbank.com, on April 21, 2011 at 10:00 a.m. CT.  Additionally, the webcast is 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, quarterly reports, investor presentations and SEC filings.

 

 

 

 

TCF is a Wayzata, Minnesota-based national bank holding company with $18.7 billion in total assets. TCF has 442 branches in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana, Arizona and South Dakota, providing retail and commercial banking services. TCF also conducts commercial leasing and equipment finance business in all 50 states and commercial inventory finance business in the U.S. and Canada. For more information about TCF, please visit www.tcfbank.com.

 

 

 

 

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14

 

Forward-Looking Information

 

This earnings release and other reports issued by the Company, including reports filed with the SEC, may contain “forward-looking” statements that deal with future results, plans or performance. In addition, TCF’s management may make such statements orally to the media, or to securities analysts, investors or others. Forward-looking statements deal with matters that do not relate strictly to historical facts. TCF’s future results may differ materially from historical performance and forward-looking statements about TCF’s expected financial results or other plans and are subject to a number of risks and uncertainties. These include, but are not limited to the following:

 

Adverse Economic or Business Conditions, Credit and Other Risks.  Continued or deepening deterioration in general economic and banking industry conditions, or continued increases in unemployment in TCF’s primary banking markets; adverse economic, business and competitive developments such as shrinking interest margins, deposit outflows, deposit account attrition, or an inability to increase the number of deposit accounts; adverse changes in credit and other risks posed by TCF’s loan, lease, investment, and securities available for sale portfolios, including continuing declines in commercial or residential real estate values or changes in the allowance for loan and lease losses dictated by new market conditions or regulatory requirements; 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; and foreign currency exchange risks.

 

Earnings/Capital Constraints, Liquidity Risks.  Limitations on TCF’s ability to pay dividends or to increase dividends in the future 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 the phase out of trust preferred securities in tier 1 capital called for by the Dodd-Frank Act, or additional capital, leverage, liquidity and risk management requirements or changes in the composition of qualifying regulatory capital; 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; possible regulatory and other changes to the Federal Home Loan Bank System that may affect TCF’s borrowing capacity; costs associated with new regulatory requirements or interpretive guidance relating to liquidity.

 

Legislative and Regulatory Requirements.  New consumer protection and supervisory requirements, including the Dodd-Frank Act’s creation of a new Bureau of Consumer Financial Protection and limits on Federal preemption for state laws that could be applied to national banks; the imposition of requirements with an adverse impact relating to 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 or imposition of underwriting or other limitations that impact the ability to use certain variable-rate products; reduction of interchange revenue from debit card transactions resulting from the so-called Durbin Amendment to the Dodd-Frank Act, which limits debit card interchange fees to amounts that will only allow issuers to recover incremental costs of authorization, clearance and settlement of debit card transactions, plus possibly some costs relating to fraud prevention; 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 (so-called “cramdown” provisions); any material failure of TCF to comply with the terms of its consent order with the Office of the Comptroller of the Currency relating to TCF’s Bank Secrecy Act compliance, which may result in regulatory enforcement action including monetary penalties; increased health care costs resulting from recently enacted 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.

 

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15

 

Other Risks Relating to Fee Income. Future effects on fee income following TCF’s implementation of regulatory requirements that prohibit financial institutions from charging overdraft fees on point-of-sale and ATM transactions unless customers opt-in, including customer opt-in preferences which may have an adverse impact on TCF’s fee revenue; and uncertainties relating to future retail deposit account changes such as charging a daily negative balance fee in lieu of per item overdraft fees or other significant changes, including limitations on TCF’s ability to predict customer behavior and the impact on TCF’s fee revenues.

 

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, and possible increases in indemnification obligations for certain litigation against Visa U.S.A. (“covered litigation”) and potential reductions in card revenues resulting from covered litigation or other litigation against Visa.

 

Competitive Conditions; Supermarket Branching Risk.  Reduced demand for financial services and loan and lease products; adverse developments affecting TCF’s supermarket banking relationships or any of the supermarket chains in which TCF maintains supermarket branches.

 

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; adverse state or Federal tax assessments or findings in tax audits; lack of or inadequate insurance coverage for claims against TCF.

 

Technological and Operational Matters.  Technological, computer-related or operational difficulties or loss or theft of information and the possibility that deposit account losses (fraudulent checks, etc.) may increase.

 

Investors should consult TCF’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K for additional important information about the Company.

 

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16

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

 

 

 

Three Months Ended

 

 

 

 

 

 

 

March 31,

 

Change

 

 

 

2011

 

2010

 

$

 

%

 

Interest income:

 

 

 

 

 

 

 

 

 

Loans and leases

 

$

214,673

 

$

221,264

 

$

(6,591)

 

(3.0)

%

Securities available for sale

 

19,429

 

21,407

 

(1,978)

 

(9.2)

 

Investments and other

 

1,801

 

1,141

 

660

 

57.8

 

Total interest income

 

235,903

 

243,812

 

(7,909)

 

(3.2)

 

Interest expense:

 

 

 

 

 

 

 

 

 

Deposits

 

12,004

 

17,604

 

(5,600)

 

(31.8)

 

Borrowings

 

49,859

 

51,546

 

(1,687)

 

(3.3)

 

Total interest expense

 

61,863

 

69,150

 

(7,287)

 

(10.5)

 

Net interest income

 

174,040

 

174,662

 

(622)

 

(.4)

 

Provision for credit losses

 

45,274

 

50,491

 

(5,217)

 

(10.3)

 

Net interest income after provision for
credit losses

 

128,766

 

124,171

 

4,595

 

3.7

 

Non-interest income:

 

 

 

 

 

 

 

 

 

Fees and service charges

 

53,513

 

66,172

 

(12,659)

 

(19.1)

 

Card revenue

 

26,584

 

27,072

 

(488)

 

(1.8)

 

ATM revenue

 

6,705

 

7,022

 

(317)

 

(4.5)

 

Subtotal

 

86,802

 

100,266

 

(13,464)

 

(13.4)

 

Leasing and equipment finance

 

26,750

 

20,352

 

6,398

 

31.4

 

Other

 

694

 

2,455

 

(1,761)

 

(71.7)

 

Fees and other revenue

 

114,246

 

123,073

 

(8,827)

 

(7.2)

 

Gains (losses) on securities, net

 

-

 

(430)

 

430

 

100.0

 

Total non-interest income

 

114,246

 

122,643

 

(8,397)

 

(6.8)

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

90,273

 

88,225

 

2,048

 

2.3

 

Occupancy and equipment

 

32,159

 

32,181

 

(22)

 

(.1)

 

FDIC insurance

 

7,195

 

5,481

 

1,714

 

31.3

 

Deposit account premiums

 

3,198

 

6,798

 

(3,600)

 

(53.0)

 

Advertising and marketing

 

3,160

 

2,820

 

340

 

12.1

 

Other

 

34,566

 

34,410

 

156

 

.5

 

Subtotal

 

170,551

 

169,915

 

636

 

.4

 

Foreclosed real estate and repossessed assets, net

 

12,868

 

9,260

 

3,608

 

39.0

 

Operating lease depreciation

 

7,928

 

10,040

 

(2,112)

 

(21.0)

 

Other credit costs, net

 

2,548

 

2,587

 

(39)

 

(1.5)

 

Total non-interest expense

 

193,895

 

191,802

 

2,093

 

1.1

 

Income before income tax expense

 

49,117

 

55,012

 

(5,895)

 

(10.7)

 

Income tax expense

 

18,442

 

20,790

 

(2,348)

 

(11.3)

 

Income after income tax expense

 

30,675

 

34,222

 

(3,547)

 

(10.4)

 

Income attributable to non-controlling interest

 

989

 

301

 

688

 

N.M.

 

Net income available to common stockholders

 

$

29,686

 

$

33,921

 

$

(4,235)

 

(12.5)

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

Basic

 

$

.20

 

$

.26

 

$

(.06)

 

(23.1)

 

Diluted

 

.20

 

.26

 

(.06)

 

(23.1)

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

.05

 

$

.05

 

$

-

 

-

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Basic

 

144,395

 

132,343

 

12,052

 

9.1

 

Diluted

 

144,739

 

132,419

 

12,320

 

9.3

 

 

 

 

 

 

 

 

 

 

 

N.M. Not meaningful.

 

 

 

 

 

 

 

 

 

 

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17

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in thousands, except per-share data)

(Unaudited)

 

 

 

At

 

At

 

At

 

% Change From

 

 

 

March 31,

 

December 31,

 

March 31,

 

December 31,

 

March 31,

 

 

 

2011

 

2010

 

2010

 

2010

 

2010

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

702,811

 

$

663,901

 

$

533,020

 

5.9

%

31.9

%

Investments

 

166,381

 

179,768

 

154,625

 

(7.4)

 

7.6

 

Securities available for sale

 

2,172,017

 

1,931,174

 

1,899,825

 

12.5

 

14.3

 

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate and other

 

7,097,175

 

7,195,269

 

7,295,765

 

(1.4)

 

(2.7)

 

Commercial

 

3,608,356

 

3,646,203

 

3,702,733

 

(1.0)

 

(2.5)

 

Leasing and equipment finance

 

3,079,966

 

3,154,478

 

3,007,504

 

(2.4)

 

2.4

 

Inventory finance

 

1,011,044

 

792,354

 

700,421

 

27.6

 

44.3

 

Total loans and leases

 

14,796,541

 

14,788,304

 

14,706,423

 

.1

 

.6

 

Allowance for loan and lease losses

 

(255,308)

 

(265,819)

 

(250,430)

 

(4.0)

 

1.9

 

Net loans and leases

 

14,541,233

 

14,522,485

 

14,455,993

 

.1

 

.6

 

Premises and equipment, net

 

443,057

 

443,768

 

444,719

 

(.2)

 

(.4)

 

Goodwill

 

152,599

 

152,599

 

152,599

 

-

 

-

 

Other assets

 

534,051

 

571,330

 

546,533

 

(6.5)

 

(2.3)

 

Total assets

 

$

18,712,149

 

$

18,465,025

 

$

18,187,314

 

1.3

 

2.9

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$

4,651,762

 

$

4,530,064

 

$

4,601,984

 

2.7

 

1.1

 

Savings

 

5,582,980

 

5,390,802

 

5,499,835

 

3.6

 

1.5

 

Money market

 

695,884

 

635,922

 

672,894

 

9.4

 

3.4

 

Subtotal

 

10,930,626

 

10,556,788

 

10,774,713

 

3.5

 

1.4

 

Certificates of deposit

 

1,113,058

 

1,028,327

 

1,107,660

 

8.2

 

.5

 

Total deposits

 

12,043,684

 

11,585,115

 

11,882,373

 

4.0

 

1.4

 

Short-term borrowings

 

12,898

 

126,790

 

17,590

 

(89.8)

 

(26.7)

 

Long-term borrowings

 

4,533,176

 

4,858,821

 

4,496,574

 

(6.7)

 

.8

 

Total borrowings

 

4,546,074

 

4,985,611

 

4,514,164

 

(8.8)

 

.7

 

Accrued expenses and other liabilities

 

397,907

 

414,136

 

397,160

 

(3.9)

 

.2

 

Total liabilities

 

16,987,665

 

16,984,862

 

16,793,697

 

N.M.

 

1.2

 

Equity:

 

 

 

 

 

 

 

 

 

 

 

Preferred stock, par value $.01 per share,
30,000,000 authorized; 0 shares issued

 

-

 

-

 

-

 

-

 

-

 

Common stock, par value $.01 per share,
280,000,000 shares authorized; 159,086,990,
142,965,012 and 142,560,181 shares issued

 

1,591

 

1,430

 

1,426

 

11.3

 

11.6

 

Additional paid-in capital

 

695,856

 

459,884

 

455,608

 

51.3

 

52.7

 

Retained earnings, subject to certain restrictions

 

1,087,576

 

1,064,978

 

973,513

 

2.1

 

11.7

 

Accumulated other comprehensive loss

 

(44,172)

 

(31,514)

 

(11,836)

 

40.2

 

N.M.

 

Treasury stock at cost, 45,504, 51,160
and 622,618 shares, and other

 

(32,907)

 

(23,115)

 

(36,891)

 

42.4

 

(10.8)

 

Total TCF Financial Corp. stockholders’ equity

 

1,707,944

 

1,471,663

 

1,381,820

 

16.1

 

23.6

 

Non-controlling interest in subsidiaries

 

16,540

 

8,500

 

11,797

 

94.6

 

40.2

 

Total equity

 

1,724,484

 

1,480,163

 

1,393,617

 

16.5

 

23.7

 

Total liabilities and equity

 

$

18,712,149

 

$

18,465,025

 

$

18,187,314

 

1.3

 

2.9

 

 

 

 

 

 

 

 

 

 

 

 

 

N.M. Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

-more-


 

18

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

SUMMARY OF CREDIT QUALITY DATA

(Dollars in thousands)

(Unaudited)

 

 

 

At

 

At

 

At

 

At

 

At

 

Change from

 

 

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Mar. 31,

 

 

 

2011

 

2010

 

2010

 

2010

 

2010

 

2010

 

2010

 

Delinquency Data - Principal Balances (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

60 days or more:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First mortgage lien

 

$

70,024

 

$

73,848

 

$

80,795

 

$

85,581

 

$

80,883

 

$

(3,824)

 

$

(10,859)

 

Junior lien

 

19,528

 

20,763

 

20,387

 

21,152

 

22,293

 

(1,235)

 

(2,765)

 

Total consumer real estate

 

89,552

 

94,611

 

101,182

 

106,733

 

103,176

 

(5,059)

 

(13,624)

 

Consumer other

 

78

 

39

 

61

 

131

 

105

 

39

 

(27)

 

Total consumer real estate and other

 

89,630

 

94,650

 

101,243

 

106,864

 

103,281

 

(5,020)

 

(13,651)

 

Commercial

 

1,864

 

9,021

 

1,260

 

7,872

 

-

 

(7,157)

 

1,864

 

Leasing and equipment finance

 

5,274

 

5,054

 

4,346

 

5,817

 

9,869

 

220

 

(4,595)

 

Inventory finance

 

240

 

318

 

255

 

178

 

674

 

(78)

 

(434)

 

Subtotal

 

97,008

 

109,043

 

107,104

 

120,731

 

113,824

 

(12,035)

 

(16,816)

 

Acquired portfolios

 

4,399

 

6,000

 

5,618

 

8,078

 

9,185

 

(1,601)

 

(4,786)

 

Total delinquencies

 

$

101,407

 

$

115,043

 

$

112,722

 

$

128,809

 

$

123,009

 

$

(13,636)

 

$

(21,602)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Delinquency Data - % of Portfolio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

60 days or more:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First mortgage lien

 

1.48

%

1.55

%

1.68

%

1.78

%

1.68

%

(7)

 bps

(20)

 bps

Junior lien

 

.89

 

.93

 

.90

 

.93

 

.98

 

(4)

 

(9)

 

Total consumer real estate

 

1.30

 

1.35

 

1.43

 

1.51

 

1.45

 

(5)

 

(15)

 

Consumer other

 

.22

 

.10

 

.14

 

.27

 

.22

 

12

 

-

 

Total consumer real estate and other

 

1.29

 

1.35

 

1.42

 

1.50

 

1.44

 

(6)

 

(15)

 

Commercial

 

.05

 

.26

 

.04

 

.22

 

-

 

(21)

 

5

 

Leasing and equipment finance

 

.20

 

.19

 

.17

 

.23

 

.39

 

1

 

(19)

 

Inventory finance

 

.03

 

.05

 

.04

 

.03

 

.10

 

(2)

 

(7)

 

Subtotal

 

.69

 

.79

 

.78

 

.87

 

.82

 

(10)

 

(13)

 

Acquired portfolios

 

.89

 

1.00

 

.79

 

1.92

 

2.03

 

(11)

 

(114)

 

Total delinquencies

 

.70

 

.80

 

.78

 

.90

 

.85

 

(10)

 

(15)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes non-accrual loans and leases.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-more-

 


 

19

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

SUMMARY OF CREDIT QUALITY DATA, CONTINUED

(Dollars in thousands)

(Unaudited)

 

 

 

At

 

At

 

At

 

At

 

At

 

Change from

 

 

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Mar. 31,

 

 

 

2011

 

2010

 

2010

 

2010

 

2010

 

2010

 

2010

 

Non-Accrual Loans and Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First mortgage lien

 

$

133,865

 

$

140,871

 

$

140,315

 

$

127,966

 

$

125,997

 

$

(7,006)

 

$

7,868

 

Junior lien

 

21,325

 

26,626

 

26,225

 

23,065

 

21,874

 

(5,301)

 

(549)

 

Total consumer real estate

 

155,190

 

167,497

 

166,540

 

151,031

 

147,871

 

(12,307)

 

7,319

 

Consumer other

 

43

 

50

 

57

 

73

 

177

 

(7)

 

(134)

 

Total consumer real estate and other

 

155,233

 

167,547

 

166,597

 

151,104

 

148,048

 

(12,314)

 

7,185

 

Commercial

 

127,745

 

142,248

 

161,889

 

129,266

 

102,368

 

(14,503)

 

25,377

 

Leasing and equipment finance

 

34,634

 

34,407

 

40,455

 

48,777

 

54,099

 

227

 

(19,465)

 

Inventory finance

 

1,437

 

1,055

 

871

 

1,035

 

886

 

382

 

551

 

Total non-accrual loans and leases

 

$

319,049

 

$

345,257

 

$

369,812