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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):

January 30, 2013

 


 

 

 

 

TCF FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

 


 

Delaware

 

001-10253

 

41-1591444

(State or other jurisdiction of

incorporation)

 

(Commission File Number)

 

(IRS Employer Identification No.)

 

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

(Address of principal executive offices, including Zip Code)

 

(952) 745-2760

(Registrant’s telephone number, including area code)

 


 

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

 

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

 

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

 

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

 

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

 

 


 

Item 2.02  Results of Operations and Financial Condition.

 

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

 

TCF Financial Corporation (the “Company”) issued a press release dated January 30, 2013, attached to this Form 8-K as Exhibit 99.1, announcing its results of operations for the quarter and year ended December 31, 2012.

 

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

 

Item 7.01 Regulation FD Disclosure.

 

Information is being furnished herein in Exhibit 99.2 with respect to the slide presentation prepared for use with the press release.  This information includes selected financial and operational information through the fourth quarter of 2012 and does not represent a complete set of financial statements and related notes prepared in conformity with generally accepted accounting principles (“GAAP”).  Most, but not all, of the selected financial information furnished herein is derived from the Company’s consolidated financial statements and related notes prepared in accordance with GAAP and management’s discussion and analysis included in the Company’s reports on Forms 10-K and 10-Q.  The Company’s annual financial statements are subject to independent audit.  These materials are dated January 30, 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.  TCF Financial Corporation’s Annual Report to Shareholders and its reports on Forms 10-K, 10-Q and 8-K and other publicly available information should be consulted for other important information about the Company.

 

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

 

Item 9.01    Financial Statements and Exhibits.

 

(d)   Exhibits.

 

 

 

 

 

Exhibit No.

 

Description

 

 

 

 

 

99.1

 

Earnings Release of TCF Financial Corporation,
dated January 30, 2013

 

 

 

 

 

99.2

 

Slide presentation prepared for use with the Earnings
Release, dated January 30, 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 hereunto duly authorized.

 

 

TCF FINANCIAL CORPORATION

 

 

 

 

 

 

 

 

 

 

 

/s/ William A. Cooper

 

William A. Cooper,

 

Chairman and Chief Executive Officer

 

(Principal Executive Officer)

 

 

 

 

 

 

 

/s/ Michael S. Jones

 

Michael S. Jones,

 

Executive Vice President and Chief Financial Officer

 

(Principal Financial Officer)

 

 

 

 

 

 

 

/s/ Susan D. Bode

 

Susan D. Bode,

 

Senior Vice President and Chief Accounting Officer

 

(Principal Accounting Officer)

 

Dated:    January 30, 2013

 

3

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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 $23.6 Million, or 15 Cents Per Share

 

2012 HIGHLIGHTS

-  Net interest margin of 4.65 percent, up 66 basis points from 2011

-  Total loans and leases of $15.4 billion, up 9 percent from 2011

-  Average deposits increased $1.2 billion, or 10.1 percent from 2011

 

FOURTH QUARTER HIGHLIGHTS

-  Net interest margin of 4.79 percent, up 87 basis points from the fourth quarter of 2011

-  Pre-tax pre-provision profit of $87.2 million, up 3.5 percent from the fourth quarter of 2011

-  Average deposits increased $1.7 billion, or 13.7 percent from the fourth quarter of 2011

-  Non-performing assets decreased $65.8 million, or 12.1 percent from the third quarter of 2012

-  Over 60-day accruing delinquent loans improved by $3.2 million, or 3.2 percent from the third quarter of 2012

-  Announced common and preferred stock dividend payments, payable February 28, 2013 and March 1, 2013, respectively

 

Summary of Financial Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands, except per-share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent Change

 

 

 

 

 

 

 

 

 

4Q
2012

 

3Q
2012

 

4Q
2011

 

4Q12 vs
3Q12

 

4Q12 vs
4Q11

 

YTD
2012
 (3)

 

YTD
2011

 

Percent
Change

 

Net income (loss)

 

$

23,551

 

$

9,322

 

$

16,443

 

152.6

 %

43.2

 %

$

(218,490

)

$

109,394

 

N.M

.

Net interest income

 

201,063

 

200,559

 

173,434

 

.3

 

15.9

 

780,019

 

699,688

 

11.5

 %

Pre-tax pre-provision profit(1)

 

87,151

 

115,809

 

84,191

 

(24.7

)

3.5

 

381,656

 

379,671

 

.5

 

Diluted earnings (loss) per common share

 

.15

 

.06

 

.10

 

150.0

 

50.0

 

(1.37

)

.71

 

N.M.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Ratios(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

.63

 %

.30

 %

.37

 %

 

 

 

 

(1.14

)%

.61

 %

 

 

Return on average common equity

 

5.93

 

2.36

 

3.55

 

 

 

 

 

(13.33

)

6.32

 

 

 

Net interest margin

 

4.79

 

4.85

 

3.92

 

 

 

 

 

4.65

 

3.99

 

 

 

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

 

1.18

 

2.74

 

1.63

 

 

 

 

 

1.54

 

1.45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N.M. = Not meaningful.

 

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

 

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

 

 


2

 

WAYZATA, MN, January 30, 2013 – TCF Financial Corporation (“TCF”) (NYSE: TCB) today reported net income for the fourth quarter of 2012 of $23.6 million, compared with net income of $16.4 million in the fourth quarter of 2011 and net income of $9.3 million for the third quarter of 2012. Diluted earnings per common share was 15 cents for the fourth quarter of 2012, compared with 10 cents in the fourth quarter of 2011 and 6 cents in the third quarter of 2012.

 

TCF reported a net loss of $218.5 million for the year ended December 31, 2012, compared with net income of $109.4 million for the same period in 2011. The net loss for the year ended December 31, 2012 included (i) 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 and (ii) a net after-tax charge of $20.6 million, or 13 cents per common share, related to the implementation of clarifying bankruptcy-related regulatory guidance adopted in the third quarter, which requires loans subject to a borrower’s discharge from personal liability where the borrower has not reaffirmed the debt following Chapter 7 bankruptcy to be reported as non-accrual loans, and written down to the estimated collateral value, regardless of delinquency status.  Diluted loss per common share for 2012 was $1.37, compared with diluted earnings per common share of 71 cents in 2011.

 

-more-

 


 

3

 

Chairman’s Statement

 

“TCF’s building and investing year was highlighted by several key actions, including the balance sheet repositioning, growth of our national lending businesses and a return to TCF Free Checking,” said William A. Cooper, Chairman and Chief Executive Officer.  “I am pleased by the progress TCF made throughout 2012. In the fourth quarter we completed our second preferred stock issuance in 2012, saw continued checking account growth, reduced charge-offs and provision and an overall improvement in credit quality.

 

“The asset growth in our national platforms, the encouraging signs we are seeing in credit quality, and the execution on TCF Free Checking have provided significant momentum.  I am confident that we will be able to continue to execute on the strategies we have put in place and deliver results to our stockholders.”

 

-more-

 


 

4

 

Revenue

 

Total Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 2

 

 

 

 

 

 

 

 

 

Percent Change

 

 

 

 

 

 

 

($ in thousands)

 

4Q
2012

 

3Q
2012

 

4Q
2011

 

4Q12 vs
3Q12

 

4Q12 vs
4Q11

 

YTD
2012

 

YTD
2011

 

Percent
Change

 

Net interest income

 

$

201,063

 

$

200,559

 

$

173,434

 

.3

 %

15.9

 %

$

780,019

 

$

699,688

 

11.5

 %

Fees and other revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees and service charges

 

44,262

 

43,745

 

51,002

 

1.2

 

(13.2

)

177,953

 

219,363

 

(18.9

)

Card revenue

 

12,974

 

12,927

 

13,643

 

.4

 

(4.9

)

52,638

 

96,147

 

(45.3

)

ATM revenue

 

5,584

 

6,122

 

6,608

 

(8.8

)

(15.5

)

24,181

 

27,927

 

(13.4

)

Total banking fees

 

62,820

 

62,794

 

71,253

 

N.M

.

(11.8

)

254,772

 

343,437

 

(25.8

)

Leasing and equipment finance

 

26,149

 

20,498

 

18,492

 

27.6

 

41.4

 

92,721

 

89,167

 

4.0

 

Gains on sales of auto loans

 

6,869

 

7,486

 

1,133

 

(8.2

)

N.M

.

22,101

 

1,133

 

N.M

.

Gains on sales of consumer real estate loans

 

854

 

4,559

 

-

 

(81.3

)

N.M

.

5,413

 

-

 

N.M

.

Other

 

3,973

 

3,688

 

1,570

 

7.7

 

153.1

 

13,184

 

3,434

 

N.M

.

Total fees and other revenue

 

100,665

 

99,025

 

92,448

 

1.7

 

8.9

 

388,191

 

437,171

 

(11.2

)

Subtotal

 

301,728

 

299,584

 

265,882

 

.7

 

13.5

 

1,168,210

 

1,136,859

 

2.8

 

(Losses) gains on securities, net

 

(528

)

13,033

 

5,842

 

(104.1

)

(109.0

)

102,232

 

7,263

 

N.M

.

Total revenue

 

$

301,200

 

$

312,617

 

$

271,724

 

(3.7

)

10.8

 

$

1,270,442

 

$

1,144,122

 

11.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin(1)

 

4.79

 %

4.85

 %

3.92

 %

 

 

 

 

4.65

 %

3.99

 %

 

 

Fees and other revenue as a % of total revenue

 

33.42

 

31.68

 

34.02

 

 

 

 

 

30.56

 

38.21

 

 

 

N.M. = Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

·                 Net interest income for the fourth quarter of 2012 increased $27.6 million, or 15.9 percent, compared with the fourth quarter of 2011.  The increase was due to the balance sheet repositioning completed in the first quarter of 2012, which resulted in a $37.3 million reduction to the cost of borrowings, partially offset by a $17.1 million reduction of interest income on lower levels of mortgage-backed securities. Additionally, net interest income increased due to higher average loan balances in our national lending businesses, which includes leasing and equipment finance, inventory finance and auto finance businesses. These increases were offset by reduced interest income due to both lower yields and lower average balances of consumer real estate and commercial loans.

 

·                 Net interest margin in the fourth quarter of 2012 was 4.79 percent, compared with 3.92 percent in the fourth quarter of 2011 and 4.85 percent in the third quarter of 2012. The increase from the fourth quarter of 2011 was primarily due to lower average costs of borrowings as a result of the balance sheet repositioning. The decrease from the third quarter of 2012 was due to lower yields on new originations in the national lending portfolio in the current low rate environment.

 

-more-

 


 

5

 

Non-interest Income

 

·                 Banking fees and service charges in the fourth quarter of 2012 were $44.3 million, down $6.7 million, or 13.2 percent, from the fourth quarter of 2011. The decrease in banking fees and service charges from the fourth quarter of 2011 was primarily due to changes in our deposit product fee structure and the elimination of the monthly maintenance fee.  Banking fees and service charges in the fourth quarter of 2012 increased $517 thousand from the third quarter of 2012 as seasonal decreases in incident rates were offset by an increase in checking accounts and additional fees related to accounts acquired from Prudential.

 

·                 Leasing and equipment finance revenue was $26.1 million during fourth quarter of 2012, up $7.7 million, or 41.4 percent, from the fourth quarter of 2011, and up $5.7 million, or 27.6 percent from the third quarter of 2012. The increases were primarily due to sales-type lease revenue growth in the leasing and equipment finance portfolio as a result of customer-driven events.

 

·                 TCF sold $159.6 million, $37.4 million and $161.1 million of auto loans during the fourth quarters of 2012 and 2011, and the third quarter of 2012, respectively, resulting in gains in the same respective periods.

 

·                 In the fourth quarter of 2012, TCF sold $25.8 million of consumer real estate loans, recognizing a gain of $854 thousand. In the third quarter of 2012, TCF sold $136.7 million of consumer real estate loans, recognizing a gain of $4.6 million.

 

-more-


 

6

 

Loans and Leases

 

Period-End and Average Loans and Leases

 

Table 3   

 

 

 

 

 

 

 

 

             Percent Change

 

 

 

 

 

 

 

($ in thousands)

 

4Q

 

3Q

 

4Q

 

4Q12 vs

 

4Q12 vs

 

YTD

 

YTD

 

Percent

 

 

 

2012

 

2012

 

2011

 

3Q12

 

4Q11

 

2012

 

2011

 

Change

 

Period-End:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate

 

$

6,674,501

 

$

6,648,036

 

$

6,895,291

 

.4

  %

 

(3.2

)%

 

 

 

 

 

 

 

Commercial

 

3,405,235

 

3,511,234

 

3,449,492

 

(3.0

)

 

(1.3

)

 

 

 

 

 

 

 

Leasing and equipment finance

 

3,198,017

 

3,157,977

 

3,142,259

 

1.3

 

 

1.8

 

 

 

 

 

 

 

 

Inventory finance

 

1,567,214

 

1,466,269

 

624,700

 

6.9

 

 

150.9

 

 

 

 

 

 

 

 

Auto finance

 

552,833

 

407,091

 

3,628

 

35.8

 

 

N.M

.

 

 

 

 

 

 

 

Other

 

27,924

 

27,610

 

34,885

 

1.1

 

 

(20.0

)

 

 

 

 

 

 

 

Total

 

$

15,425,724

 

$

15,218,217

 

$

14,150,255

 

1.4

 

 

9.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate

 

$

6,663,660

 

$

6,729,254

 

$

6,933,051

 

(1.0

)

 

(3.9

)

 

$

6,757,512

 

$

7,013,281

 

(3.6

)% 

Commercial

 

3,452,768

 

3,538,111

 

3,476,660

 

(2.4

)

 

(.7

)

 

3,485,218

 

3,565,085

 

(2.2

)

Leasing and equipment finance

 

3,184,540

 

3,164,592

 

3,043,329

 

.6

 

 

4.6

 

 

3,155,946

 

3,074,207

 

2.7

 

Inventory finance

 

1,570,829

 

1,440,298

 

766,885

 

9.1

 

 

104.8

 

 

1,434,643

 

856,271

 

67.5

 

Auto finance

 

504,565

 

367,271

 

1,442

 

37.4

 

 

N.M

.

 

296,083

 

363

 

N.M

.

Other

 

14,704

 

16,280

 

17,944

 

(9.7

)

 

(18.1

)

 

16,549

 

19,324

 

(14.4

)

Total

 

$

15,391,066

 

$

15,255,806

 

$

14,239,311

 

.9

 

 

8.1

 

 

$

15,145,951

 

$

14,528,531

 

4.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N.M. = Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·    Loans and leases were $15.4 billion at December 31, 2012, an increase of $1.3 billion, or 9 percent, compared with December 31, 2011, and up slightly compared with September 30, 2012.  The increase from 2011 was due to growth in inventory finance, primarily from the new program with Bombardier Recreational Products, Inc. (“BRP”), the continued growth of auto finance, acquired in November 2011, and growth in leasing and equipment finance, partially offset by decreases in consumer real estate loans driven by sales in the third and fourth quarter of 2012 and a decline in origination of first mortgages.

 

·    Auto finance increased its portfolio of managed loans, which includes portfolio loans, loans held for sale, and loans sold and serviced for others, to $1.3 billion as of December 31, 2012, an increase of $242.1 million from September 30, 2012, and an increase of $864.5 million from December 31, 2011. At December 31, 2012, auto finance had 6,176 active dealers, compared with 6,087 at September 30, 2012 and 3,451 at December 31, 2011.

 

·    Total loan and lease originations were $2.8 billion for the fourth quarter of 2012, an increase of $1.4 billion, or 105.1 percent, compared with the fourth quarter of 2011.  This increase was primarily due to strong growth in our national lending businesses as it expanded its origination sources through new

 

-more-


 

7

 

segments, programs and dealers. Total loan and lease originations increased $378.9 million, or 15.5 percent, compared with the third quarter of 2012, due to increases in the inventory finance portfolio as well as increased originations of commercial and leasing and equipment finance loans.

 

·    Quarterly average loans and leases were $15.4 billion for the quarter ended December 31, 2012, an increase of $1.2 billion, or 8.1 percent, compared with the quarter ended December 31, 2011. The increase from the quarter ended December 31, 2011 was primarily due to growth in the inventory finance portfolio due to the funding of dealers of BRP products, as well as the growth in the auto finance portfolio since its acquisition in November 2011.

 

-more-


 

8

 

Credit Quality

 


Credit Trends

 


Table 4


(In millions)

 

 

 

 

(At or for the Quarter Ended)

(1) Includes non-accrual loans and leases and other real estate owned.

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

(3) Excludes the impact of implementation of clarifying bankruptcy-related regulatory guidance adopted in the third quarter of 2012.

 

·    

Over 60-day delinquencies improved for the fourth consecutive quarter. Net charge-offs decreased $58.9 million from the third quarter, primarily due to the $43.9 million in charge-offs recorded at September 30, 2012 related to the implementation of clarifying bankruptcy-related regulatory guidance. Non-performing assets decreased from the third quarter due to decreases in commercial non-accrual loans and decreases in balances of commercial and consumer real estate other real estate owned.

 

 

·    

The over 60-day delinquency rate at December 31, 2012, was .64 percent, down from .85 percent at December 31, 2011. The decrease was primarily a result of reduced delinquencies in the consumer real estate portfolio.

 

 

·    

Non-accrual loans and leases were $379.5 million at December 31, 2012, a decrease of $42.4 million, or 10 percent, from September 30, 2012 and an increase of $81.1 million, or 27.2 percent, from December 31, 2011. The decrease from September 30, 2012 was primarily due to $27.7 million of commercial loans returning to accrual status, as well as payments received on commercial non-accrual loans. The

 

-more-

 


 

9

 

 

increase from December 31, 2011 was primarily due to the implementation of clarifying bankruptcy-related regulatory guidance in the third quarter of 2012. At December 31, 2012, $117.7 million of non-accrual assets were associated with the clarifying bankruptcy-related guidance of which  87.5% were less than 60 days past due.

 

 

·    

Other real estate owned was $97 million at December 31, 2012, a decrease of $23.4 million from September 30, 2012, and a decrease of $37.9 million from December 31, 2011. Both decreases were primarily due to a decrease in the number of consumer and commercial properties owned driven by increased sales activity.

 

 

·    

Provision for credit losses was $48.5 million, a decrease of $47.8 million from the third quarter of 2012 and a decrease of $10.7 million from the fourth quarter of 2011. The decrease from the third quarter of 2012 was primarily due to the non-recurring impact resulting from the implementation of bankruptcy-related regulatory guidance in the third quarter. The decrease from the fourth quarter of 2011 was primarily due to decreasing net charge-offs.

 

Deposits

 

Average Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 5

 

 

 

 

 

 

 

 

Percent Change

 

 

 

 

 

 

 

 

($ in thousands)

 

4Q

 

3Q

 

4Q

 

4Q12 vs

 

4Q12 vs

 

 

YTD

 

YTD

 

Percent

 

 

 

2012

 

2012

 

2011

 

3Q12

 

4Q11

 

 

2012

 

2011

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$

4,627,627

 

$

4,582,088

 

$

4,449,640

 

1.0

  %      

4.0

  %

        

$

4,602,881

 

$

4,499,211

 

2.3

  %      

Savings

 

6,103,302

 

6,173,524

 

5,878,392

 

(1.1

)

3.8

 

 

6,059,237

 

5,692,324

 

6.4

 

Money market

 

819,596

 

848,899

 

662,024

 

(3.5

)

23.8

 

 

770,104

 

658,693

 

16.9

 

Subtotal

 

11,550,525

 

11,604,511

 

10,990,056

 

(.5

)

5.1

 

 

11,432,222

 

10,850,228

 

5.4

 

Certificates

 

2,206,173

 

1,953,208

 

1,112,735

 

13.0

 

98.3

 

 

1,727,859

 

1,103,231

 

56.6

 

Total average deposits

 

$

13,756,698

 

$

13,557,719

 

$

12,102,791

 

1.5

 

13.7

 

 

$

13,160,081

 

$

11,953,459

 

10.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average interest rate on deposits (1) 

 

.32%

 

.32%

 

.32%

 

 

 

 

 

 

.31%

 

.38%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·    

Total average deposits for the fourth quarter of 2012 increased $1.7 billion, or 13.7 percent, from the fourth quarter of 2011, primarily due to special programs for certificates of deposits, the assumption of $778 million of deposits from Prudential Bank & Trust, FSB in June 2012 and the reintroduction of free

 

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10

 

 

checking.

 

 

·    

The average interest rate on deposits in the fourth quarter of 2012 was .32 percent and has remained relatively flat for the past five quarters.

 

Non-interest Expense

 

Non-interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 6

 

 

 

 

 

 

 

 

 

Percent Change

 

 

 

 

 

 

 

 

($ in thousands)

 

4Q

 

3Q

 

4Q

 

4Q12 vs

 

4Q12 vs

 

 

YTD

 

YTD

 

Percent

 

 

   

2012

   

2012

   

2011

   

3Q12

    

4Q11

 

 

2012

   

2011

   

Change

    

Compensation and
employee benefits

 

$

101,678

 

$

98,409

 

$

82,595

 

3.3

  %  

23.1

  %

  

$

393,841

 

$

348,792

 

12.9

  %

Occupancy and equipment

 

32,809

 

33,006

 

32,366

 

(.6

)

1.4

 

 

130,792

 

126,437

 

3.4

 

FDIC insurance

 

8,671

 

6,899

 

6,647

 

25.7

 

30.4

 

 

30,425

 

28,747

 

5.8

 

Advertising and marketing

 

4,303

 

4,248

 

2,250

 

1.3

 

91.2

 

 

16,572

 

10,034

 

65.2

 

Deposit account premiums

 

523

 

485

 

6,482

 

7.8

 

(91.9

)

 

8,669

 

22,891

 

(62.1

)

Operating lease depreciation

 

5,905

 

6,325

 

6,811

 

(6.6

)

(13.3

)

 

25,378

 

30,007

 

(15.4

)

Other

 

53,472

 

36,173

 

39,148

 

47.8

 

36.6

 

 

163,897

 

145,489

 

12.7

 

Core operating expenses

 

207,361

 

185,545

 

176,299

 

11.8

 

17.6

 

 

769,574

 

712,397

 

8.0

 

Loss on termination of debt

 

-

 

-

 

-

 

-

 

-

 

 

550,735

 

-

 

N.M

.

Foreclosed real estate and
repossessed assets, net

 

7,582

 

10,670

 

11,323

 

(28.9

)

(33.0

)

 

41,358

 

49,238

 

(16.0

)

Other credit costs, net

 

(894)

 

593

 

(89)

 

N.M

.

N.M

.

 

887

 

2,816

 

(68.5

)

Total non-interest expense

 

$

214,049

 

$

196,808

 

$

187,533

 

8.8

 

14.1

 

 

$

1,362,554

 

$

764,451

 

78.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N.M. = Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·    

Compensation and employee benefits expense for the fourth quarter of 2012 increased $19.1 million, or 23.1 percent, from the fourth quarter of 2011. The increase was primarily due to increasing staff levels to support the growth of Gateway One, acquired in November 2011, as well as increased staffing levels to support the increased assets of the BRP program in Inventory Finance.

 

 

·    

The combined expense associated with advertising, marketing and deposit account premiums decreased $3.9 million from the fourth quarter of 2011. The decrease from the fourth quarter of 2011 is attributable to TCF’s shift in strategy for acquiring high quality accounts, through the reintroduction of a free checking product, versus the utilization of deposit account premiums.

 

 

·    

Included in other expense is $10 million for the civil money penalty assessed pursuant to previously disclosed deficiencies in TCF’s Bank Secrecy Act compliance program.

 

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11

 

Capital

 

Capital Information

 

 

 

 

 

 

 

 

 

 

 

 

Table 7  

At period end

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands, except per-share data)

 

 

 

4Q

 

 

 

 

 

 

4Q

 

 

 

 

 

 

 

2012

 

 

 

 

 

 

2011

 

 

 

Total equity

 

$

 

1,876,643

 

 

 

 

$

 

1,878,627

 

 

 

Book value per common share

 

 

 

$9.79

 

 

 

 

 

 

$11.65

 

 

 

Tangible realized common equity to tangible assets(1)

 

 

 

7.52

 %

 

 

 

 

 

8.42

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk-based capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1

 

$

 

1,633,336

 

11.09

 %

 

$

 

1,706,926

 

12.67

 %

Total(2)

 

 

 

2,007,835

 

13.63

 

 

 

 

1,994,875

 

14.80

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage capital

 

$

 

1,633,336

 

9.21

 %

 

$

 

1,706,926

 

9.15

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 common capital(3)

 

$

 

1,356,826

 

9.21

 %

 

$

 

1,581,432

 

11.74

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes the impact of goodwill, other intangibles and accumulated other comprehensive income (loss) (see

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

 

 

·      During the fourth quarter of 2012, TCF issued $100 million of 6.45% Series B Non-Cumulative Perpetual Preferred Stock, par value $.01 per share, which qualifies as Tier 1 capital.

 

·                 On January 24, 2013, the Board of Directors of TCF declared a regular quarterly cash dividend of 5 cents per common share payable on February 28, 2013, to stockholders of record at the close of business on February 15, 2013. TCF also declared a dividend on the 7.50% Series A and 6.45% Series B Non-Cumulative Perpetual Preferred Stock payable on March 1, 2013, to stockholders of record at the close of business on February 15, 2013.

 

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12

 

Webcast Information

 

A live webcast of TCF’s conference call to discuss 2012 year-end and fourth quarter earnings will be hosted at TCF’s website, http://ir.tcfbank.com, on January 30, 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 $18.2 billion in total assets at December 31, 2012. TCF has nearly 430 branches in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana, Arizona and South Dakota, providing retail and commercial banking services. TCF, through its subsidiaries, also conducts commercial leasing and equipment finance business in all 50 states, commercial inventory finance business in the U.S. and Canada, and indirect auto finance business in over 40 states. For more information about TCF, please visit http://ir.tcfbank.com.

 


 

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13

 

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

 

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

 

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

 

Adverse Economic or Business Conditions; Competitive Conditions; Credit and Other Risks.  Deterioration in general economic and banking industry conditions, including 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 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; 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; 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; 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 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

 

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14

 

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 customer opt-in preferences with respect to overdraft fees on point of sale and ATM transactions or the success of TCF’s reintroduction of TCF Free CheckingSM 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, including the announcement on January 10, 2013 by SUPERVALU that it had entered into an agreement to sell several of its supermarket chains, including Jewel-Osco®; in which TCF has 157 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; 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, 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 state or Federal 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.

 

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15

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

 

 

 

Three Months Ended December 31,

 

Change

 

 

 

2012

 

2011

 

$

 

%

 

Interest income:

 

 

 

 

 

 

 

 

 

Loans and leases

 

$

 210,490

 

$

 205,415

 

$

 5,075

 

2.5

 

%

Securities available for sale

 

4,615

 

22,559

 

(17,944)

 

(79.5

)

 

Investments and other

 

3,922

 

2,333

 

1,589

 

68.1

 

 

Total interest income

 

219,027

 

230,307

 

(11,280)

 

(4.9

)

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

Deposits

 

10,972

 

9,791

 

1,181

 

12.1

 

 

Borrowings

 

6,992

 

47,082

 

(40,090)

 

(85.1

)

 

Total interest expense

 

17,964

 

56,873

 

(38,909)

 

(68.4

)

 

Net interest income

 

201,063

 

173,434

 

27,629

 

15.9

 

 

Provision for credit losses

 

48,520

 

59,249

 

(10,729)

 

(18.1

)

 

Net interest income after provision for
credit losses

 

152,543

 

114,185

 

38,358

 

33.6

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

Fees and service charges

 

44,262

 

51,002

 

(6,740)

 

(13.2

)

 

Card revenue

 

12,974

 

13,643

 

(669)

 

(4.9

)

 

ATM revenue

 

5,584

 

6,608

 

(1,024)

 

(15.5

)

 

Subtotal

 

62,820

 

71,253

 

(8,433)

 

(11.8

)

 

Leasing and equipment finance

 

26,149

 

18,492

 

7,657

 

41.4

 

 

Gain on sales of auto loans

 

6,869

 

1,133

 

5,736

 

N.M

.

 

Gain on sale of consumer real estate loans

 

854

 

-

 

854

 

N.M

.

 

Other

 

3,973

 

1,570

 

2,403

 

153.1

 

 

Fees and other revenue

 

100,665

 

92,448

 

8,217

 

8.9

 

 

(Losses) gains on securities, net

 

(528)

 

5,842

 

(6,370)

 

(109.0

)

 

Total non-interest income

 

100,137

 

98,290

 

1,847

 

1.9

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

101,678

 

82,595

 

19,083

 

23.1

 

 

Occupancy and equipment

 

32,809

 

32,366

 

443

 

1.4

 

 

FDIC insurance

 

8,671

 

6,647

 

2,024

 

30.4

 

 

Advertising and marketing

 

4,303

 

2,250

 

2,053

 

91.2

 

 

Deposit account premiums

 

523

 

6,482

 

(5,959)

 

(91.9

)

 

Operating lease depreciation

 

5,905

 

6,811

 

(906)

 

(13.3

)

 

Other

 

53,472

 

39,148

 

14,324

 

36.6

 

 

Subtotal

 

207,361

 

176,299

 

31,062

 

17.6

 

 

Foreclosed real estate and repossessed assets, net

 

7,582

 

11,323

 

(3,741)

 

(33.0

)

 

Other credit costs, net

 

(894)

 

(89)

 

(805)

 

N.M

.

 

Total non-interest expense

 

214,049

 

187,533

 

26,516

 

14.1

 

 

Income before income tax expense

 

38,631

 

24,942

 

13,689

 

54.9

 

 

Income tax expense

 

10,540

 

7,424

 

3,116

 

42.0

 

 

Income after income tax expense

 

28,091

 

17,518

 

10,573

 

60.4

 

 

Income attributable to non-controlling interest

 

1,306

 

1,075

 

231

 

21.5

 

 

Preferred stock dividends

 

3,234

 

-

 

3,234

 

N.M

.

 

Net income available to common stockholders

 

23,551

 

16,443

 

7,108

 

43.2

 

 

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

Reclassification adjustment for securities gains
included in net income

 

-

 

(6,130)

 

6,130

 

(100.0

)

 

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

 

(8,589)

 

(4,334)

 

(4,255)

 

(98.2

)

 

Foreign currency hedge

 

136

 

(458)

 

594

 

(129.7

)

 

Foreign currency translation adjustment

 

(170)

 

443

 

(613)

 

(138.4

)

 

Recognized postretirement prior service cost
and transition obligation

 

144

 

305

 

(161)

 

(52.8

)

 

Income tax expense

 

2,855

 

3,890

 

(1,035)

 

(26.6

)

 

Total other comprehensive loss

 

(5,624)

 

(6,284)

 

660

 

10.5

 

 

Comprehensive income

 

$

17,927

 

$

10,159

 

$

7,768

 

76.5

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

Basic

 

$

.15

 

$

.10

 

$

.05

 

50.0

 

 

Diluted

 

.15

 

.10

 

.05

 

50.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

.05

 

$

.05

 

$

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

Basic

 

159,914

 

157,829

 

2,085

 

1.3

 

 

Diluted

 

160,500

 

158,152

 

2,348

 

1.5

 

 

N.M. Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

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16

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

 

 

 

Year Ended December 31,

 

Change

 

 

 

2012

 

2011

 

$

 

%

 

Interest income:

 

 

 

 

 

 

 

 

 

Loans and leases

 

$

835,380

 

$

844,796

 

$

(9,416)

 

(1.1

)

%

Securities available for sale

 

35,150

 

85,188

 

(50,038)

 

(58.7

)

 

Investments and other

 

14,093

 

7,967

 

6,126

 

76.9

 

 

Total interest income

 

884,623

 

937,951

 

(53,328)

 

(5.7

)

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

Deposits

 

40,987

 

45,108

 

(4,121)

 

(9.1

)

 

Borrowings

 

63,617

 

193,155

 

(129,538)

 

(67.1

)

 

Total interest expense

 

104,604

 

238,263

 

(133,659)

 

(56.1

)

 

Net interest income

 

780,019

 

699,688

 

80,331

 

11.5

 

 

Provision for credit losses

 

247,443

 

200,843

 

46,600

 

23.2

 

 

Net interest income after provision for
credit losses

 

532,576

 

498,845

 

33,731

 

6.8

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

Fees and service charges

 

177,953

 

219,363

 

(41,410)

 

(18.9

)

 

Card revenue

 

52,638

 

96,147

 

(43,509)

 

(45.3

)

 

ATM revenue

 

24,181

 

27,927

 

(3,746)

 

(13.4

)

 

Subtotal

 

254,772

 

343,437

 

(88,665)

 

(25.8

)

 

Leasing and equipment finance

 

92,721

 

89,167

 

3,554

 

4.0

 

 

Gain on sales of auto loans

 

22,101

 

1,133

 

20,968

 

N.M

.

 

Gain on sale of consumer real estate loans

 

5,413

 

-

 

5,413

 

N.M

.

 

Other

 

13,184

 

3,434

 

9,750

 

N.M

.

 

Fees and other revenue

 

388,191

 

437,171

 

(48,980)

 

(11.2

)

 

Gains on securities, net

 

102,232

 

7,263

 

94,969

 

N.M.

 

 

Total non-interest income

 

490,423

 

444,434

 

45,989

 

10.3

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

393,841

 

348,792

 

45,049

 

12.9

 

 

Occupancy and equipment

 

130,792

 

126,437

 

4,355

 

3.4

 

 

FDIC insurance

 

30,425

 

28,747

 

1,678

 

5.8

 

 

Advertising and marketing

 

16,572

 

10,034

 

6,538

 

65.2

 

 

Deposit account premiums

 

8,669

 

22,891

 

(14,222)

 

(62.1

)

 

Operating lease depreciation

 

25,378

 

30,007

 

(4,629)

 

(15.4

)

 

Other

 

163,897

 

145,489

 

18,408

 

12.7

 

 

Subtotal

 

769,574

 

712,397

 

57,177

 

8.0

 

 

Loss on termination of debt

 

550,735

 

-

 

550,735

 

N.M

.

 

Foreclosed real estate and repossessed assets, net

 

41,358

 

49,238

 

(7,880)

 

(16.0

)

 

Other credit costs, net

 

887

 

2,816

 

(1,929)

 

(68.5

)

 

Total non-interest expense

 

1,362,554

 

764,451

 

598,103

 

78.2

 

 

(Loss) income before income tax expense

 

(339,555)

 

178,828

 

(518,383)

 

N.M

.

 

Income tax (benefit) expense

 

(132,858)

 

64,441

 

(197,299)

 

N.M

.

 

(Loss) income after income tax expense

 

(206,697)

 

114,387

 

(321,084)

 

N.M

.

 

Income attributable to non-controlling interest

 

6,187

 

4,993

 

1,194

 

23.9

 

 

Preferred stock dividends

 

5,606

 

-

 

5,606

 

N.M

.

 

Net (loss) income available to common stockholders

 

(218,490)

 

109,394

 

(327,884)

 

N.M

.

 

Other comprehensive (loss) income:

 

 

 

 

 

 

 

 

 

 

Reclassification adjustment for securities gains
included in net income

 

(89,879)

 

(8,045)

 

(81,834)

 

N.M

.

 

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

 

19,794

 

122,638

 

(102,844)

 

(83.9

)

 

Foreign currency hedge

 

(630)

 

261

 

(891)

 

N.M

.

 

Foreign currency translation adjustment

 

531

 

(433)

 

964

 

N.M

.

 

Recognized postretirement prior service cost
and transition obligation

 

123

 

308

 

(185)

 

(60.1

)

 

Income tax expense (benefit)

 

25,678

 

(42,211)

 

67,889

 

(160.8

)

 

Total other comprehensive (loss) income

 

(44,383)

 

72,518

 

(116,901)

 

(161.2

)

 

Comprehensive (loss) income

 

$

(262,873)

 

$

181,912

 

$

(444,785)

 

N.M

.

 

Net (loss) income per common share:

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(1.37)

 

$

.71

 

$

(2.08)

 

N.M

.

 

Diluted

 

(1.37)

 

.71

 

(2.08)

 

N.M

.

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

.20

 

$

.20

 

$

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

Basic

 

159,269

 

154,222

 

5,047

 

3.3

 

 

Diluted

 

159,269

 

154,509

 

4,760

 

3.1

 

 

N.M. Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

-more-

 


 

17

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in thousands, except per-share data)

(Unaudited)

 

 

 

At Dec. 31

 

At Dec. 31

 

Change

 

 

 

2012

 

2011

 

$

 

%

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

1,100,347

 

$

1,389,704

 

$

(289,357)

 

(20.8

)

%

Investments

 

120,867

 

157,780

 

(36,913)

 

(23.4

)

 

Securities available for sale

 

712,091

 

2,324,038

 

(1,611,947)

 

(69.4

)

 

Loans and leases held for sale

 

10,289

 

14,321

 

(4,032)

 

(28.2

)

 

Loans and leases:

 

 

 

 

 

 

 

 

 

 

Consumer real estate

 

6,674,501

 

6,895,291

 

(220,790)

 

(3.2

)

 

Commercial

 

3,405,235

 

3,449,492

 

(44,257)

 

(1.3

)

 

Leasing and equipment finance

 

3,198,017

 

3,142,259

 

55,758

 

1.8

 

 

Inventory finance

 

1,567,214

 

624,700

 

942,514

 

150.9

 

 

Auto finance

 

552,833

 

3,628

 

549,205

 

N.M

.

 

Other loans and leases

 

27,924

 

34,885

 

(6,961)

 

(20.0

)

 

Total loans and leases

 

15,425,724

 

14,150,255

 

1,275,469

 

9.0

 

 

Allowance for loan and lease losses

 

(267,128)

 

(255,672)

 

(11,456)

 

(4.5

)

 

Net loans and leases

 

15,158,596

 

13,894,583

 

1,264,013

 

9.1

 

 

Premises and equipment, net

 

440,466

 

436,281

 

4,185

 

1.0

 

 

Goodwill

 

225,640

 

225,640

 

-

 

-

 

 

Other assets

 

457,621

 

537,041

 

(79,420)

 

(14.8

)

 

Total assets

 

$

18,225,917

 

$

18,979,388

 

$

(753,471)

 

(4.0

)

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

Checking

 

$

4,834,632

 

$

4,629,749

 

$

204,883

 

4.4

 

 

Savings