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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):

December 28, 2011

 


 

TCF FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

 


 

Delaware

 

001-10253

 

41-1591444

(State or other jurisdiction of incorporation)

 

(Commission File Number)

 

(IRS Employer Identification No.)

 

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

(Address of principal executive offices, including Zip Code)

 

(952) 745-2760

(Registrant’s telephone number, including area code)

 


 

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

 

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

 

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

 

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

 

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

 

 

 

 


 

Item 8.01   Other Events.

 

On December 28, 2011, TCF Financial Corporation (the “Company”) adopted a change in its accounting policies for recognizing actuarial gains and losses related to pension and other post retirement benefits.  Historically, the Company has reported net actuarial gains and losses as a component of Stockholders’ Equity in its consolidated balance sheets.  Going forward, the Company will immediately recognize actuarial gains and losses in operating results for the year in which the gains and losses occur. For purposes of calculating the expected return on plan assets, the Company will no longer use an averaging technique for the market-related value of plan assets, but will instead use the actual fair value of plan assets. While both the historical and revised policies are permitted under generally accepted accounting principles in the United States, the Company believes that the new policies are preferable as the economic results of the plans will be recognized in earnings in the year they occur.  The changes in accounting policies are required to be applied retrospectively to prior periods.

 

The effect that the new accounting policies had on net income as previously reported for the three and nine months ended September 30, 2011 by and for the years ended December 31, 2010 and 2009 is summarized in exhibit 99.1. Neither the funded status of the Company’s pension and other post retirement benefit plans, nor previously reported plan assets or obligations are impacted by the changes in accounting policies.  A copy of the Company’s financial results under the historical and revised accounting policies is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

 

Item 9.01   Financial Statements and Exhibits

 

 

(d) Exhibits.

 

 

 

 

 

 

 

 

Exhibit No.

Description

 

 

 

 

 

 

99.1

Financial Results - Historical and Revised Employee Benefit
Accounting dated December 28, 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 hereunto 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 Managing Director,
Corporate Development
(Principal Accounting Officer)

 

Dated:    December 29, 2011

 

 

3

 

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Section 2: EX-99.1 (EX-99.1)

 

Exhibit 99.1

 

TCF FINANCIAL CORPORATION

HISTORICAL AND REVISED EMPLOYEE BENEFIT PLAN ACCOUNTING

(Dollars in thousands, except per-share data)

 

 

 

 

Nine Months Ended September 30, 2011

 

Year Ended December 31,

 

 

 

 

2010

 

2009

 

Historical accounting:

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest cost

 

$

1,990

 

$

3,009

 

$

3,413

 

Expected return on plan assets

 

(2,073

)

(4,946

)

(5,129

)

Service cost

 

1

 

2

 

7

 

Recognized actuarial loss

 

1,682

 

1,909

 

1,515

 

Settlement expense

 

1,030

 

2,076

 

3,010

 

Amortization of transition obligation

 

3

 

4

 

4

 

Net periodic benefit cost (income)

 

$

2,633

 

$

2,054

 

$

2,820

 

 

 

 

 

 

 

 

 

Income before income tax expense

 

$

151,214

 

$

237,626

 

$

132,541

 

Income tax expense

 

56,056

 

87,765

 

45,854

 

Income after income tax expense

 

95,158

 

149,861

 

86,687

 

Income (loss) attributable to non-controlling interest

 

3,918

 

3,297

 

(410

)

Net income

 

91,240

 

146,564

 

87,097

 

Preferred stock dividends

 

 

 

6,378

 

Non-cash deemed preferred stock distribution

 

 

 

12,025

 

Net income available to common stockholders

 

$

91,240

 

$

146,564

 

$

68,694

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$

.59

 

$

1.05

 

$

.54

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

Year Ended December 31,

 

 

 

September 30, 2011

 

2010

 

2009

 

Accounting under revised method:

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

Interest cost

 

$

1,990

 

$

3,009

 

$

3,413

 

Return on plan assets

 

(2,033

)

(9,938

)

(13,560

)

Service cost

 

1

 

2

 

7

 

Recognized actuarial loss

 

 

2,188

 

1,827

 

Amortization of transition obligation

 

3

 

4

 

4

 

Net periodic benefit cost (income)

 

$

(39

)

$

(4,735

)

$

(8,309

)

 

 

 

 

 

 

 

 

Income before income tax expense

 

$

153,886

 

$

244,415

 

$

143,670

 

Income tax expense

 

57,017

 

90,171

 

49,811

 

Income after income tax expense

 

96,869

 

154,244

 

93,859

 

Income (loss) attributable to non-controlling interest

 

3,918

 

3,297

 

(410

)

Net income

 

92,951

 

150,947

 

94,269

 

Preferred stock dividends

 

 

 

6,378

 

Non-cash deemed preferred stock distribution

 

 

 

12,025

 

Net income available to common stockholders

 

$

92,951

 

$

150,947

 

$

75,866

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$

.60

 

$

1.08

 

$

.60

 

 

-more-

 


 

2

 

TCF FINANCIAL CORPORATION

HISTORICAL AND REVISED EMPLOYEE BENEFIT PLAN ACCOUNTING (continued)

(Dollars in thousands, except per-share data)

(Unaudited)

 

 

 

 

At or For the Three Months Ended

 

 

 

Sept. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sept. 30,

 

Jun. 30,

 

Mar. 31,

 

 

 

2011

 

2011

 

2011

 

2010

 

2010

 

2010

 

2010

 

Historical accounting:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest cost

 

$

664

 

$

662

 

$

664

 

$

752

 

$

752

 

$

753

 

$

752

 

Expected return on plan assets

 

(691

)

(691

)

(691

)

(1,238

)

(1,236

)

(1,236

)

(1,236

)

Service cost

 

 

1

 

 

1

 

 

 

1

 

Recognized actuarial loss

 

561

 

561

 

560

 

477

 

478

 

478

 

476

 

Settlement expense

 

293

 

368

 

369

 

610

 

580

 

442

 

444

 

Amortization of transition obligation

 

1

 

1

 

1

 

1

 

1

 

1

 

1

 

Net periodic benefit cost (income)

 

$

828

 

$

902

 

$

903

 

$

603

 

$

575

 

$

438

 

$

438

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax expense

 

$

51,816

 

$

50,281

 

$

49,117

 

$

47,634

 

$

60,657

 

$

74,323

 

$

55,012

 

Income tax expense

 

18,856

 

18,758

 

18,442

 

16,011

 

22,852

 

28,112

 

20,790

 

Income after income tax expense

 

32,960

 

31,523

 

30,675

 

31,623

 

37,805

 

46,211

 

34,222

 

Income (loss) attributable to non-controlling interest

 

1,243

 

1,686

 

989

 

898

 

912

 

1,186

 

301

 

Net income

 

31,717

 

29,837

 

29,686

 

30,725

 

36,893

 

45,025

 

33,921

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$

.20

 

$

.19

 

$

.20

 

$

.22

 

$

.26

 

$

.32

 

$

.26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounting under revised method:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest cost

 

$

664

 

$

662

 

$

664

 

$

752

 

$

752

 

$

753

 

$

752

 

Return on plan assets

 

(678

)

(677

)

(678

)

(6,867

)

(1,023

)

(1,024

)

(1,024

)

Service cost

 

 

1

 

 

1

 

 

 

1

 

Recognized actuarial loss

 

 

 

 

2,188

 

 

 

 

Amortization of transition obligation

 

1

 

1

 

1

 

1

 

1

 

1

 

1

 

Net periodic benefit cost (income)

 

$

(13

)

$

(13

)

$

(13

)

$

(3,925

)

$

(270

)

$

(270

)

$

(270

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax expense

 

$

52,657

 

$

51,196

 

$

50,033

 

$

52,162

 

$

61,502

 

$

75,031

 

$

55,720

 

Income tax expense

 

19,159

 

19,086

 

18,772

 

17,391

 

23,226

 

28,438

 

21,116

 

Income after income tax expense

 

33,498

 

32,110

 

31,261

 

34,771

 

38,276

 

46,593

 

34,604

 

Income (loss) attributable to non-controlling interest

 

1,243

 

1,686

 

989

 

898

 

912

 

1,186

 

301

 

Net income

 

32,255

 

30,424

 

30,272

 

33,873

 

37,364

 

45,407

 

34,303

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$

.20

 

$

.19

 

$

.21

 

$

.24

 

$

.26

 

$

.32

 

$

.26

 

 

###

 

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