Toggle SGML Header (+)


Section 1: 8-K (8-K)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 


 

FORM 8-K

 


 

CURRENT REPORT

 

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

 

Date of Report (Date of earliest event reported):

April 19, 2013

 


 

 

TCF FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

 


 

Delaware

(State or other jurisdiction of

incorporation)

 

001-10253

(Commission File Number)

 

41-1591444

(IRS Employer Identification No.)

 

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

(Address of principal executive offices, including Zip Code)

 

(952) 745-2760

 (Registrant’s telephone number, including area code)

 


 

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

 

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

 

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

 

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

 

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

 

 


 

Item 2.02  Results of Operations and Financial Condition.

 

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

 

TCF Financial Corporation (the “Company”) issued a press release dated April 19, 2013, attached to this Form 8-K as Exhibit 99.1, announcing its results of operations for the quarter and year ended March 31, 2013.

 

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

 

Item 7.01 Regulation FD Disclosure.

 

Information is being furnished herein in Exhibit 99.2 with respect to the slide presentation prepared for use with the press release.  This information includes selected financial and operational information through the first quarter of 2013 and does not represent a complete set of financial statements and related notes prepared in conformity with generally accepted accounting principles (“GAAP”).  Most, but not all, of the selected financial information furnished herein is derived from the Company’s consolidated financial statements and related notes prepared in accordance with GAAP and management’s discussion and analysis included in the Company’s reports on Forms 10-K and 10-Q.  The Company’s annual financial statements are subject to independent audit.  These materials are dated April 19, 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 April 19, 2013

 

 

 

99.2

 

Slide presentation prepared for use with the Earnings
Release, dated April 19, 2013

 


 

2

 

SIGNATURES

 

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

 

 

 

TCF FINANCIAL CORPORATION

 

 

 

 

 

 

 

 

/s/ William A. Cooper

 

 

William A. Cooper,

 

 

 

Chairman and Chief Executive Officer
(Principal Executive Officer)

 

 

 

 

 

 

 

 

/s/ Michael S. Jones

 

 

Michael S. Jones,

 

 

Executive Vice President and Chief Financial Officer
(Principal Financial Officer)

 

 

 

 

 

 

 

 

/s/ Susan D. Bode

 

 

Susan D. Bode,

 

 

Senior Vice President and Chief Accounting Officer
(Principal Accounting Officer)

 

Dated:  April 19, 2013

 

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

 

Exhibit 99.1

 

NEWS RELEASE

 

CONTACT:  Jason Korstange

(952) 745-2755

tcfbank.com

FOR IMMEDIATE RELEASE

 

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

 

TCF Reports Quarterly Net Income of $25.5 Million, or 16 Cents Per Share

 

FIRST QUARTER HIGHLIGHTS

-       Net interest margin of 4.72 percent, up 58 basis points from the first quarter of 2012

-       Pre-tax pre-provision profit of $87.7 million, up 24.3 percent from the first quarter of 2012

-       Provision for credit losses of $38.4 million, down 20.9 percent from the first quarter of 2012

-       Average deposits increased $1.8 billion, or 14.4 percent, from the first quarter of 2012

-       Non-accrual loans and leases and other real estate owned decreased $61.3 million, or 12.9 percent, from the fourth quarter of 2012

-       Over 60-day accruing delinquent loans decreased by $15.5 million, or 16.3 percent, from the fourth quarter of 2012

-       Announced common and preferred stock dividend payments payable May 31, 2013 and June 3, 2013, respectively

 

Summary of Financial Results

 

 

 

 

 

 

 

 

 

Table 1 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands, except per-share data)

 

 

 

 

 

 

 

Percent Change

 

 

 

1Q

 

4Q

 

1Q

 

1Q13 vs

 

1Q13 vs

 

 

 

2013

 

2012

 

2012 (3)

 

4Q12

 

1Q12

 

Net income (loss)

 

$

25,450

 

$

23,551

 

$

(282,894

)

8.1

 %

N.M

.%

Net interest income

 

199,091

 

201,063

 

180,173

 

(1.0

)

10.5

 

Pre-tax pre-provision profit(1)

 

87,742

 

87,151

 

70,578

 

.7

 

24.3

 

Diluted earnings (loss) per common share

 

.16

 

.15

 

(1.78

)

6.7

 

N.M

.

 

 

 

 

 

 

 

 

 

 

 

 

Financial Ratios(2)

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

.70

 %

.63

 %

(5.96

)%

 

 

 

 

Return on average common equity

 

6.36

 

5.93

 

(63.38

)

 

 

 

 

Net interest margin

 

4.72

 

4.79

 

4.14

 

 

 

 

 

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

 

1.06

 

1.18

 

1.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

N.M. Not meaningful.

 


 

2

 

WAYZATA, MN, April 19, 2013 – TCF Financial Corporation (“TCF”) (NYSE: TCB) today reported net income for the first quarter of 2013 of $25.5 million, compared with a net loss of $282.9 million for the first quarter of 2012 (inclusive of a net after-tax charge of $295.8 million, or $1.87 per common share, related to a balance sheet repositioning involving certain investments and borrowings in that period) and net income of $23.6 million for the fourth quarter of 2012. Diluted earnings per common share was 16 cents for the first quarter of 2013, compared with a loss per common share of $1.78 for the first quarter of 2012 (earnings per common share of 8 cents before the balance sheet repositioning charge) and diluted earnings per common share of 15 cents for the fourth quarter of 2012.

 

Chairman’s Statement

 

“TCF’s first quarter results were highlighted by strong credit quality improvements as well as additional core revenue generation,” said William A. Cooper, Chairman and Chief Executive Officer.  “Our encouraging credit trends, which began in late 2012 and have continued into 2013, include decreases in non-accrual loans and leases, other real estate owned and net charge-offs.  Revenue increased during the quarter due to the impact of continued core auto loan sales and expanded core consumer real estate loan sales.

 

“TCF’s focus throughout 2013 is to generate results based on the momentum created through our building and investing strategies in 2012.  We executed on this initiative in the first quarter as net interest margin remained strong and loan and lease balances continued to grow.  I am encouraged by our progress so far and am confident that we are in position to drive results moving forward.”

 

-more-


 

3

 

Revenue

 

Total Revenue

 

 

 

 

 

 

 

 

 

Table 2

 

 

 

 

 

 

 

 

 

Percent Change

 

 

 

1Q

 

4Q

 

1Q

 

1Q13 vs

 

1Q13 vs

 

($ in thousands)

 

2013

 

2012

 

2012

 

4Q12

 

1Q12

 

Net interest income

 

$

199,091

 

$

201,063

 

$

180,173

 

(1.0

)%

10.5

 %

Fees and other revenue:

 

 

 

 

 

 

 

 

 

 

 

Fees and service charges

 

39,323

 

44,262

 

41,856

 

(11.2

)

(6.1

)

Card revenue

 

12,417

 

12,974

 

13,207

 

(4.3

)

(6.0

)

ATM revenue

 

5,505

 

5,584

 

6,199

 

(1.4

)

(11.2

)

Total banking fees

 

57,245

 

62,820

 

61,262

 

(8.9

)

(6.6

)

Leasing and equipment finance

 

16,460

 

26,149

 

22,867

 

(37.1

)

(28.0

)

Gains on sales of consumer real estate loans

 

8,126

 

854

 

-

 

N.M

.

N.M

.

Gains on sales of auto loans

 

7,146

 

6,869

 

2,250

 

4.0

 

N.M

.

Other

 

3,726

 

3,973

 

2,355

 

(6.2

)

58.2

 

Total fees and other revenue

 

92,703

 

100,665

 

88,734

 

(7.9

)

4.5

 

Subtotal

 

291,794

 

301,728

 

268,907

 

(3.3

)

8.5

 

(Losses) gains on securities, net

 

-

 

(528

)

76,611

 

(100.0

)

(100.0

)

Total revenue

 

$

291,794

 

$

301,200

 

$

345,518

 

(3.1

)

(15.5

)

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (1)

 

4.72

 %

4.79

 %

4.14

 %

 

 

 

 

Fees and other revenue as
a % of total revenue

 

31.77

 

33.42

 

25.68

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N.M. = Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

(1) Annualized.

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

·                 Net interest income for the first quarter of 2013 increased $18.9 million, or 10.5 percent, compared with the first quarter of 2012, and decreased slightly from the fourth quarter of 2012.  The increase from the first quarter of 2012 was primarily due to the balance sheet repositioning completed in that quarter, which resulted in a $28.6 million reduction to the cost of borrowings, partially offset by a $14.3 million reduction of interest income on lower levels of mortgage-backed securities for the first quarter of 2013, as well as higher average loan balances primarily from the inventory finance and auto finance portfolios. These increases were partially offset by reduced interest income due to lower average balances of consumer real estate loans as a result of loan sales in the third and fourth quarters of 2012 and first quarter of 2013, as well as lower yields as new originations in our lending businesses continued to be impacted by the low interest rate environment.

 

·                 Net interest margin in the first quarter of 2013 was 4.72 percent, compared with 4.14 percent in the first quarter of 2012 and 4.79 percent in the fourth quarter of 2012. The increase from the first quarter of

 

-more-


 

4

 

2012 was primarily due to a lower average cost of borrowings as a result of the balance sheet repositioning. The decrease from the fourth quarter of 2012 was primarily due to lower yields in the commercial portfolio and the Company’s increased liquidity position driven by the increased loan sale activity late in the quarter.

 

Non-interest Income

 

·                 Fees and service charges in the first quarter of 2013 were $39.3 million, down $2.5 million, or 6.1 percent, from the first quarter of 2012 and down $4.9 million, or 11.2 percent, from the fourth quarter of 2012. The decrease from the first quarter of 2012 was due to the elimination of the monthly maintenance fee on deposit products through the reintroduction of free checking. The decrease from the fourth quarter of 2012 was primarily due to lower transaction activity and higher average balances per customer during the first quarter of 2013, partially offset by growth in the account base for the third consecutive quarter driven by the reintroduction of free checking.

 

·                 Leasing and equipment finance revenue was $16.5 million during first quarter of 2013, down $6.4 million, or 28 percent, from the first quarter of 2012 and down $9.7 million, or 37.1 percent, from the fourth quarter of 2012. The decreases were primarily due to lower operating lease and sales-type lease revenue growth in the leasing and equipment finance portfolio as a result of customer driven events.

 

·                 In the first quarter of 2013 and the fourth quarter of 2012, respectively, TCF sold $279.2 million and $25.7 million of consumer real estate loans, recognizing gains in the same respective periods.

 

·                 TCF sold $179.8 million, $72 million and $159.6 million of auto loans during the first quarters of 2013 and 2012, and the fourth quarter of 2012, respectively, resulting in gains in the same respective periods.

 

-more-


 

5

 

Loans and Leases

 

Period-End and Average Loans and Leases

 

 

 

 

 

 

 

 

Table 3

 

 

 

 

 

 

 

 

 

Percent Change

 

($ in thousands)

 

1Q

 

4Q

 

1Q

 

1Q13 vs

 

1Q13 vs

 

 

 

2013

 

2012

 

2012

 

4Q12

 

1Q12

 

Period-End:

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate

 

$

6,418,666

 

$

6,674,501

 

$

6,815,909

 

(3.8

)%

(5.8

)%

Commercial

 

3,334,716

 

3,405,235

 

3,467,089

 

(2.1

)

(3.8

)

Leasing and equipment finance

 

3,185,234

 

3,198,017

 

3,118,755

 

(.4

)

2.1

 

Inventory finance

 

1,931,363

 

1,567,214

 

1,637,958

 

23.2

 

17.9

 

Auto finance

 

719,666

 

552,833

 

139,047

 

30.2

 

N.M

.

Other

 

23,701

 

27,924

 

29,178

 

(15.1

)

(18.8

)

Total

 

$

15,613,346

 

$

15,425,724

 

$

15,207,936

 

1.2

 

2.7

 

 

 

 

 

 

 

 

 

 

 

 

 

Average:

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate

 

$

6,556,426

 

$

6,663,660

 

$

6,845,063

 

(1.6

)

(4.2

)

Commercial

 

3,345,780

 

3,452,768

 

3,457,720

 

(3.1

)

(3.2

)

Leasing and equipment finance

 

3,199,499

 

3,184,540

 

3,128,329

 

.5

 

2.3

 

Inventory finance

 

1,686,364

 

1,570,829

 

1,145,183

 

7.4

 

47.3

 

Auto finance

 

670,096

 

504,565

 

85,562

 

32.8

 

N.M

.

Other

 

13,641

 

14,704

 

17,582

 

(7.2

)

(22.4

)

Total

 

$

15,471,806

 

$

15,391,066

 

$

14,679,439

 

.5

 

5.4

 

 

 

 

 

 

 

 

 

 

 

 

 

N.M. = Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

·                 Loans and leases were $15.6 billion at March 31, 2013, an increase of $405.4 million, or 2.7 percent, compared with March 31, 2012 and an increase of $187.6 million, or 1.2 percent, compared with December 31, 2012.  Quarterly average loans and leases were $15.5 billion for the first quarter of 2013, an increase of $792.4 million, or 5.4 percent, compared with the first quarter of 2012 and an increase of $80.7 million, or .5 percent, compared with the fourth quarter of 2012.  The increases in period-end and average loans and leases from both periods were primarily due to growth in inventory finance as a result of the Bombardier Recreational Products, Inc. (“BRP”) program, as well as the continued growth of auto finance, as we continue to expand the business. These increases were partially offset by decreases in consumer real estate loans driven by sales in the third and fourth quarters of 2012 and the first quarter of 2013, as well as decreases in commercial loans due to payoffs in the low rate environment exceeding new originations.

 

-more-


 

6

 

Credit Quality

 

Credit Trends

Table 4

 

 

(In millions)

(At or for the Quarter Ended)

 

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

(2) Excludes $122.1 million, $117.7 million and $103.2 million of non-accrual assets at March 31, 2013, December 31, 2012 and
September 30, 2012, respectively, associated with the implementation of clarifying bankruptcy-related regulatory guidance in the third
quarter of 2012.

 

·                 Over 60-day delinquencies improved for the fifth consecutive quarter.  The over 60-day delinquency rate excluding acquired portfolios and non-accrual loans and leases at March 31, 2013 was .53 percent, down from .64 percent at December 31, 2012 and .77 percent at March 31, 2012. The decreases from both periods were primarily a result of reduced delinquencies in the consumer real estate portfolio.

 

·                 Net charge-offs decreased $4.5 million from the fourth quarter of 2012, primarily due to improved credit quality in the consumer real estate portfolio.

 

·                 Non-accrual loans and leases were $343.4 million at March 31, 2013, a decrease of $36.1 million, or 9.5 percent, from December 31, 2012 and an increase of $34.4 million, or 11.1 percent, from March 31, 2012. The decrease from December 31, 2012 was primarily due to improved credit quality in the commercial and consumer real estate portfolios resulting in fewer loans entering non-accrual status. The

 

-more-


 

7

 

increase from March 31, 2012 was primarily due to the implementation of clarifying bankruptcy-related regulatory guidance in the third quarter of 2012. At March 31, 2013, $122.1 million of non-accrual assets were associated with the clarifying bankruptcy-related guidance of which 84 percent were less than 60 days past due.

 

·                 Other real estate owned was $71.8 million at March 31, 2013, a decrease of $25.2 million from December 31, 2012, and a decrease of $55.5 million from March 31, 2012. The decrease in both periods was primarily due to a portfolio sale of 184 consumer properties during the first quarter of 2013, as well as a decrease in the number of consumer real estate loans transferred from non-accrual status.

 

·                 Provision for credit losses was $38.4 million, a decrease of $10.1 million from the fourth quarter of 2012 and a decrease of $10.2 million from the first quarter of 2012.  The decrease from the fourth quarter of 2012 was primarily due to decreased charge-offs in the consumer real estate portfolio and lower reserve balances on the leasing and equipment finance portfolio as a result of reduced loss experience.  The decrease in provision from the first quarter of 2012 was primarily due to a reduction in the reserve rate for the commercial, leasing and equipment finance and inventory finance portfolios as a result of improved credit quality.

 

-more-


 

8

 

Deposits

 

Average Deposits

 

 

 

 

 

 

 

 

 

Table 5  

 

 

 

 

 

 

 

 

Percent Change

 

 

($ in thousands)

 

1Q

 

4Q

 

1Q

 

1Q13 vs

 

1Q13 vs

 

 

 

2013

 

2012

 

2012

 

4Q12

 

1Q12

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$

4,784,945

 

$

4,627,627

 

$

4,565,065

 

3.4

 %

4.8

 %   

Savings

 

6,114,219

 

6,103,302

 

5,905,118

 

.2

 

3.5

 

Money market

 

815,374

 

819,596

 

662,493

 

(.5

)

23.1

 

Subtotal

 

11,714,538

 

11,550,525

 

11,132,676

 

1.4

 

5.2

 

Certificates

 

2,323,267

 

2,206,173

 

1,135,673

 

5.3

 

104.6

 

Total average deposits

 

$

14,037,805

 

$

13,756,698

 

$

12,268,349

 

2.0

 

14.4

 

 

 

 

 

 

 

 

 

 

 

 

 

Average interest rate on deposits (1)

 

.28%

 

.32%

 

.30%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Annualized.

 

 

 

 

 

 

 

 

 

 

 

 

·                 Total average deposits for the first quarter of 2013 increased $1.8 billion, or 14.4 percent, from the first quarter of 2012, 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 checking. The average interest rate on deposits in the first quarter of 2013 was .28 percent, down four basis points from the fourth quarter of 2012 and down two basis points from the first quarter of 2012.

 

-more-


 

9

 

Non-interest Expense

 

Non-interest Expense

 

 

 

 

 

 

 

 

 

Table 6   

 

 

 

 

 

 

 

 

Percent Change

 

($ in thousands)

 

1Q

 

4Q

 

1Q

 

1Q13 vs

 

1Q13 vs

 

 

 

2013

 

2012

 

2012

 

4Q12

 

1Q12

 

Compensation and
employee benefits

 

$

104,229

 

$

101,678

 

$

95,967

 

2.5

 %

8.6

 %   

Occupancy and equipment

 

32,875

 

32,809

 

32,246

 

.2

 

2.0

 

FDIC insurance

 

7,710

 

8,671

 

6,386

 

(11.1

)

20.7

 

Advertising and marketing

 

5,732

 

4,303

 

2,617

 

33.2

 

119.0

 

Operating lease depreciation

 

5,635

 

5,905

 

6,731

 

(4.6

)

(16.3

)

Deposit account premiums

 

602

 

523

 

5,971

 

15.1

 

(89.9

)

Other

 

37,939

 

53,472

 

37,296

 

(29.0

)

1.7

 

Core operating expenses

 

194,722

 

207,361

 

187,214

 

(6.1

)

4.0

 

Loss on termination of debt

 

-

 

-

 

550,735

 

N.M.

 

(100.0

)

Foreclosed real estate and
repossessed assets, net

 

10,167

 

7,582

 

11,047

 

34.1

 

(8.0

)

Other credit costs, net

 

(837

)

(894

)

(288)

 

6.4

 

(190.6

)

Total non-interest expense

 

$

204,052

 

$

214,049

 

$

748,708

 

(4.7

)

(72.7

)

 

 

 

 

 

 

 

 

 

 

 

 

N.M. = Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

·                 Compensation and employee benefits expense for the first quarter of 2013 increased $8.3 million, or 8.6 percent, from the first quarter of 2012. The increase was primarily due to increased staff levels to support the growth of auto finance and to support the assets of the BRP program in inventory finance.

 

·                 The combined expense associated with advertising, marketing and deposit account premiums decreased $2.3 million from the first quarter of 2012.  The decrease from the first quarter of 2012 is attributable to TCF’s change in strategy for acquiring high quality accounts through the reintroduction of free checking, versus the utilization of high dollar deposit account premiums.

 

·    The increase in foreclosed real estate and repossessed assets expense from the fourth quarter of 2012 is driven by the acceleration of expenses related to a portfolio sale of consumer properties during the first quarter of 2013.

 

-more-


 

10

 

Capital

 

Capital Information

 

 

 

 

Table 7

 

At period end

 

 

 

 

 

 

($ in thousands, except per-share data)

 

1Q

 

 

4Q

 

 

 

2013

 

 

2012

 

Total equity

 

$

1,900,159

 

 

 

 

$

1,876,643

 

 

 

Book value per common share

 

$

9.86

 

 

 

 

$

9.79

 

 

 

Tangible realized common equity to tangible assets (1)

 

7.55

 %

 

 

 

7.52

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk-based capital (2)

 

 

 

 

 

 

 

 

 

 

Tier 1

 

$

1,666,630

 

11.14

 %

 

$

1,633,336

 

11.09

 %   

Total

 

2,019,082

 

13.49

 

 

2,007,835

 

13.63

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage capital

 

$

1,666,630

 

9.23

 %

 

$

1,633,336

 

9.21

 %

 

 

 

 

 

 

 

 

 

 

 

Tier 1 common capital (3)

 

$

1,382,457

 

9.24

 %

 

$

1,356,826

 

9.21

 %

 

 

 

 

 

 

 

 

 

 

 

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

 

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

 

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

 

 

·                 On April 17, 2013, the Board of Directors of TCF declared a regular quarterly cash dividend of 5 cents per common share payable on May 31, 2013, to stockholders of record at the close of business on May 15, 2013. TCF also declared a dividend on the 7.50% Series A and 6.45% Series B Non-Cumulative Perpetual Preferred Stock, both payable on June 3, 2013, to stockholders of record at the close of business on May 15, 2013.

 

-more-


 

11

 

Webcast Information

 

A live webcast of TCF’s conference call to discuss the first quarter earnings will be hosted at TCF’s website, http://ir.tcfbank.com, on April 19, 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 $18.5 billion in total assets at March 31, 2013. 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.

 

 

-more-


 

12

 

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

 

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

 

Certain factors could cause the Company’s future results to differ materially from those expressed or implied in any forward-looking statements contained in this earnings release.  These factors include the factors discussed in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 under the heading “Risk Factors,” the factors discussed below and any other cautionary statements, written or oral, which may be made or referred to in connection with any such forward-looking statements. Since it is not possible to foresee all such factors, these factors should not be considered as complete or exhaustive.

 

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

 

-more-


 

13

 

requirements); adverse changes in securities markets directly or indirectly affecting TCF’s ability to sell assets or to fund its operations; diminished unsecured borrowing capacity resulting from TCF credit rating downgrades and unfavorable conditions in the credit markets that restrict or limit various funding sources; costs associated with new regulatory requirements or interpretive guidance relating to liquidity; uncertainties relating to customer opt-in preferences with respect to overdraft fees on point of sale and ATM transactions or the success of TCF’s reintroduction of free checking, 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 SUPERVALU’s sale of several of its supermarket chains, including Jewel-Osco®, in which TCF has 156 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; risks related to new product additions and addition of distribution channels (or entry into new markets) for existing products.

 

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

 

Litigation Risks.  Results of litigation, including class action litigation concerning TCF’s lending or deposit activities including account servicing processes or fees or charges, or employment practices, 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.

 

-more-


 

14

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

 

 

 

Three Months Ended March 31,

 

Change

 

 

 

2013

 

2012

 

$

 

%

 

Interest income:

 

 

 

 

 

 

 

 

 

Loans and leases

 

$

204,905

 

$

205,984

 

$

(1,079)

 

(.5)

  %

Securities available for sale

 

4,795

 

19,112

 

(14,317)

 

(74.9)

 

Investments and other

 

5,850

 

2,433

 

3,417

 

140.4

 

Total interest income

 

215,550

 

227,529

 

(11,979)

 

(5.3)

 

Interest expense:

 

 

 

 

 

 

 

 

 

Deposits

 

9,681

 

9,061

 

620

 

6.8

 

Borrowings

 

6,778

 

38,295

 

(31,517)

 

(82.3)

 

Total interest expense

 

16,459

 

47,356

 

(30,897)

 

(65.2)

 

Net interest income

 

199,091

 

180,173

 

18,918

 

10.5

 

Provision for credit losses

 

38,383

 

48,542

 

(10,159)

 

(20.9)

 

Net interest income after provision for
credit losses

 

160,708

 

131,631

 

29,077

 

22.1

 

Non-interest income:

 

 

 

 

 

 

 

 

 

Fees and service charges

 

39,323

 

41,856

 

(2,533)

 

(6.1)

 

Card revenue

 

12,417

 

13,207

 

(790)

 

(6.0)

 

ATM revenue

 

5,505

 

6,199

 

(694)

 

(11.2)

 

Subtotal

 

57,245

 

61,262

 

(4,017)

 

(6.6)

 

Leasing and equipment finance

 

16,460

 

22,867

 

(6,407)

 

(28.0)

 

Gain on sale of consumer real estate loans

 

8,126

 

-

 

8,126

 

N.M.

 

Gain on sales of auto loans

 

7,146

 

2,250

 

4,896

 

N.M.

 

Other

 

3,726

 

2,355

 

1,371

 

58.2

 

Fees and other revenue

 

92,703

 

88,734

 

3,969

 

4.5

 

Gains on securities, net

 

-

 

76,611

 

(76,611)

 

(100.0)

 

Total non-interest income

 

92,703

 

165,345

 

(72,642)

 

(43.9)

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

104,229

 

95,967

 

8,262

 

8.6

 

Occupancy and equipment

 

32,875

 

32,246

 

629

 

2.0

 

FDIC insurance

 

7,710

 

6,386

 

1,324

 

20.7

 

Advertising and marketing

 

5,732

 

2,617

 

3,115

 

119.0

 

Operating lease depreciation

 

5,635

 

6,731

 

(1,096)

 

(16.3)

 

Deposit account premiums

 

602

 

5,971

 

(5,369)

 

(89.9)

 

Other

 

37,939

 

37,296

 

643

 

1.7

 

Subtotal

 

194,722

 

187,214

 

7,508

 

4.0

 

Loss on termination of debt

 

-

 

550,735

 

(550,735)

 

(100.0)

 

Foreclosed real estate and repossessed assets, net

 

10,167

 

11,047

 

(880)

 

(8.0)

 

Other credit costs, net

 

(837)

 

(288)

 

(549)

 

(190.6)

 

Total non-interest expense

 

204,052

 

748,708

 

(544,656)

 

(72.7)

 

Income (loss) before income tax expense (benefit)

 

49,359

 

(451,732)

 

501,091

 

N.M.

 

Income tax expense (benefit)

 

17,559

 

(170,244)

 

187,803

 

N.M.

 

Income (loss) after income tax expense (benefit)

 

31,800

 

(281,488)

 

313,288

 

N.M.

 

Income attributable to non-controlling interest

 

1,826

 

1,406

 

420

 

29.9

 

Net income (loss) attributable to TCF Financial Corporation

 

29,974

 

(282,894)

 

312,868

 

N.M.

 

Preferred stock dividends

 

4,524

 

-

 

4,524

 

N.M.

 

Net income (loss) available to common stockholders

 

$

25,450

 

$

(282,894)

 

$

308,344

 

N.M.

 

Net income (loss) per common share:

 

 

 

 

 

 

 

 

 

Basic

 

$

.16

 

$

(1.78)

 

$

1.94

 

N.M.

 

Diluted

 

.16

 

(1.78)

 

1.94

 

N.M.

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

.05

 

$

.05

 

$

-

 

-

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Basic

 

160,390

 

158,506

 

1,884

 

1.2

 

Diluted

 

161,140

 

158,506

 

2,634

 

1.7

 

N.M. Not meaningful.

 

 

 

 

 

 

 

 

 

 

-more-


 

15

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

 

 

 

Three Months Ended March 31,

 

Change

 

 

 

2013

 

2012

 

$

 

%

 

Net income (loss) attributable to TCF Financial Corporation

 

$

29,974

 

$

(282,894)

 

$

312,868

 

N.M.

  %

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

Reclassification adjustment for securities gains
included in net income

 

-

 

(76,967)

 

76,967

 

(100.0)

 

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

 

(13,829)

 

(7,768)

 

(6,061)

 

(78.0)

 

Foreign currency hedge

 

537

 

(404)

 

941

 

N.M.

 

Foreign currency translation adjustment

 

(622)

 

385

 

(1,007)

 

N.M.

 

Recognized postretirement prior service cost
and transition obligation

 

(12)

 

(7)

 

(5)

 

(71.4)

 

Income tax benefit

 

5,019

 

31,208

 

(26,189)

 

(83.9)

 

Total other comprehensive loss

 

(8,907)

 

(53,553)

 

44,646

 

83.4

 

Comprehensive income (loss)

 

$

21,067

 

$

(336,447)

 

$

357,514

 

N.M.

 

 

 

 

 

 

 

 

 

 

 

N.M. Not meaningful.

 

 

 

 

 

 

 

 

 

 

-more-


 

16

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in thousands, except per-share data)

(Unaudited)

 

 

 

At Mar. 31

 

At Dec. 31

 

Change

 

 

 

2013

 

2012

 

$

 

%

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

1,213,747

 

$

1,100,347

 

$

113,400

 

10.3  

%

Investments

 

122,070

 

120,867

 

1,203

 

1.0

 

Securities available for sale

 

677,088

 

712,091

 

(35,003)

 

(4.9)

 

Loans and leases held for sale

 

20,217

 

10,289

 

9,928

 

96.5  

 

Loans and leases:

 

 

 

 

 

 

 

 

 

Consumer real estate

 

6,418,666

 

6,674,501

 

(255,835)

 

(3.8)

 

Commercial

 

3,334,716

 

3,405,235

 

(70,519)

 

(2.1)

 

Leasing and equipment finance

 

3,185,234

 

3,198,017

 

(12,783)

 

  (.4)

 

Inventory finance

 

1,931,363

 

1,567,214

 

364,149

 

23.2  

 

Auto finance

 

719,666

 

552,833

 

166,833

 

30.2  

 

Other loans and leases

 

23,701

 

27,924

 

(4,223)

 

(15.1)  

 

Total loans and leases

 

15,613,346

 

15,425,724

 

187,622

 

1.2

 

Allowance for loan and lease losses

 

(263,596)

 

(267,128)

 

3,532

 

1.3

 

Net loans and leases

 

15,349,750

 

15,158,596

 

191,154

 

1.3

 

Premises and equipment, net

 

438,616

 

440,466

 

(1,850)

 

  (.4)

 

Goodwill

 

225,640

 

225,640

 

-

 

  -

 

Other assets

 

456,898

 

457,621

 

(723)

 

  (.2)

 

Total assets

 

$

18,504,026

 

$

18,225,917

 

$

278,109

 

1.5

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

Checking

 

$

5,051,730

 

$

4,834,632

 

$

217,098

 

4.5

 

Savings

 

6,151,147

 

6,104,104

 

47,043

 

  .8

 

Money market

 

801,443

 

820,553

 

(19,110)

 

(2.3)

 

Subtotal

 

12,004,320

 

11,759,289

 

245,031

 

2.1

 

Certificates of deposit

 

2,295,784

 

2,291,497

 

4,287

 

  .2

 

Total deposits

 

14,300,104

 

14,050,786

 

249,318

 

1.8

 

Short-term borrowings

 

3,717

 

2,619

 

1,098

 

41.9  

 

Long-term borrowings

 

1,926,794

 

1,931,196

 

(4,402)

 

  (.2)

 

Total borrowings

 

1,930,511

 

1,933,815

 

(3,304)

 

  (.2)

 

Accrued expenses and other liabilities

 

373,252

 

364,673

 

8,579

 

2.4

 

Total liabilities

 

16,603,867

 

16,349,274

 

254,593

 

1.6

 

Equity:

 

 

 

 

 

 

 

 

 

Preferred stock, par value $.01 per share,

 

 

 

 

 

 

 

 

 

30,000,000 authorized; and 4,006,900 shares issued

 

263,240

 

263,240

 

-

 

  -

 

Common stock, par value $.01 per share,

 

 

 

 

 

 

 

 

 

280,000,000 shares authorized; 163,910,124

 

 

 

 

 

 

 

 

 

and 163,428,763 shares issued

 

1,639

 

1,634

 

5

 

  .3

 

Additional paid-in capital

 

757,346

 

750,040

 

7,306

 

1.0

 

Retained earnings, subject to certain restrictions

 

894,861

 

877,445

 

17,416

 

2.0

 

Accumulated other comprehensive income

 

3,536

 

12,443

 

(8,907)

 

(71.6)  

 

Treasury stock at cost, 42,566 shares, and other

 

(41,396)

 

(41,429)

 

33

 

  .1

 

Total TCF Financial Corporation stockholders’ equity

 

1,879,226

 

1,863,373

 

15,853

 

  .9

 

Non-controlling interest in subsidiaries

 

20,933

 

13,270

 

7,663

 

57.7  

 

Total equity

 

1,900,159

 

1,876,643

 

23,516

 

1.3

 

Total liabilities and equity

 

$

18,504,026

 

$

18,225,917

 

$

278,109

 

1.5

 

 

-more-


 

17

 

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,

 

 

 

2013

 

2012

 

2012

 

2012

 

2012

 

2012

 

2012

 

Delinquency Data - Principal Balances (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

60 days or more:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First mortgage lien

 

$

66,164

 

$

76,020

 

$

80,153

 

$

86,714

 

$

88,092

 

$

(9,856)

 

$

(21,928)

 

Junior lien

 

9,674

 

13,141

 

13,388

 

13,967

 

15,563

 

(3,467)

 

(5,889)

 

Total consumer real estate

 

75,838

 

89,161

 

93,541

 

100,681

 

103,655

 

(13,323)

 

(27,817)

 

Commercial

 

906

 

2,630

 

2,652

 

5,616

 

3,425

 

(1,724)

 

(2,519)

 

Leasing and equipment finance

 

2,067

 

2,568

 

1,554

 

1,492

 

4,919

 

(501)

 

(2,852)

 

Inventory finance

 

156

 

119

 

80

 

206

 

185

 

37

 

(29)

 

Auto finance

 

563

 

532

 

305

 

62

 

2

 

31

 

561

 

Other

 

-

 

31

 

22

 

34

 

52

 

(31)

 

(52)

 

Subtotal

 

79,530

 

95,041

 

98,154

 

108,091

 

112,238

 

(15,511)

 

(32,708)

 

Acquired portfolios

 

578

 

982

 

1,069

 

1,483

 

2,198

 

(404)

 

(1,620)

 

Total delinquencies

 

$

80,108

 

$

96,023

 

$

99,223

 

$

109,574

 

$

114,436

 

$

(15,915)

 

$

(34,328)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Delinquency Data - % of Portfolio (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

60 days or more:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First mortgage lien

 

1.67

 %

1.88

 %

1.93

 %

1.93

 %

1.93

 %

(21)

bps

(26)

bps

Junior lien

 

.43

 

.55

 

.59

 

.64

 

.74

 

(12)

 

(31)

 

Total consumer real estate

 

1.22

 

1.38

 

1.46

 

1.51

 

1.55

 

(16)

 

(33)

 

Commercial

 

.03

 

.08

 

.08

 

.17

 

.10

 

(5)

 

(7)

 

Leasing and equipment finance

 

.07

 

.08

 

.05

 

.05

 

.17

 

(1)

 

(10)

 

Inventory finance

 

.01

 

.01

 

.01

 

.01

 

.01

 

-

 

-

 

Auto finance

 

.08

 

.10

 

.08

 

.02

 

-

 

(2)

 

8

 

Other

 

-

 

.12

 

.09

 

.13

 

.20

 

(12)

 

(20)

 

Subtotal

 

.53

 

.64

 

.67

 

.74

 

.77

 

(11)

 

(24)

 

Acquired portfolios

 

.37

 

.58

 

.50

 

.58

 

.66

 

(21)

 

(29)

 

Total delinquencies

 

.52

 

.64

 

.67

 

.73

 

.77

 

(12)

 

(25)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes non-accrual loans and leases.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At

 

At

 

At

 

At

 

At

 

Change from

 

 

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Mar. 31,

 

 

 

2013

 

2012

 

2012

 

2012

 

2012

 

2012

 

2012

 

Non-Accrual Loans and Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First mortgage lien

 

$

186,218

 

$

199,631

 

$

197,649

 

$

122,406

 

$

125,895

 

$

(13,413)

 

$

60,323

 

Junior lien

 

33,907

 

35,269

 

35,936

 

18,272

 

23,409

 

(1,362)

 

10,498

 

Total consumer real estate

 

220,125

 

234,900

 

233,585

 

140,678

 

149,304

 

(14,775)

 

70,821

 

Commercial

 

108,505

 

127,746

 

169,339

 

150,215

 

135,677

 

(19,241)

 

(27,172)

 

Leasing and equipment finance

 

11,695

 

13,652

 

15,812

 

29,429

 

20,015

 

(1,957)

 

(8,320)

 

Inventory finance

 

1,480

 

1,487

 

1,120

 

1,900

 

1,109

 

(7)

 

371

 

Auto finance

 

106

 

101

 

-

 

-

 

-

 

5

 

106

 

Other

 

1,477

 

1,571

 

1,957

 

2,204

 

2,838

 

(94)

 

(1,361)

 

Total non-accrual loans and leases

 

$

343,388

 

$

379,457

 

$

421,813

 

$

324,426

 

$

308,943

 

$

(36,069)

 

$

34,445

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans and leases - rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

$

379,457

 

$

421,813

 

$

324,426

 

$

308,943

 

$

298,311

 

$

(42,356)

 

$

81,146

 

Additions

 

56,712

 

88,235

 

210,916

 

111,739

 

85,670

 

(31,523)

 

(28,958)

 

Charge-offs

 

(24,968)

 

(27,657)

 

(49,116)

 

(28,228)

 

(19,683)

 

2,689

 

(5,285)

 

Transfers to other assets

 

(18,892)

 

(17,305)

 

(24,632)

 

(34,473)

 

(25,603)

 

(1,587)

 

6,711

 

Return to accrual status

 

(34,692)

 

(55,261)

 

(30,300)

 

(22,200)

 

(21,243)

 

20,569

 

(13,449)

 

Payments received

 

(15,399)

 

(30,832)

 

(9,652)

 

(12,261)

 

(9,202)

 

15,433

 

(6,197)

 

Other, net

 

1,170

 

464

 

171

 

906

 

693

 

706

 

477

 

Balance, end of period

 

$

343,388

 

$

379,457

 

$

421,813

 

$

324,426

 

$

308,943

 

$

(36,069)

 

$

34,445

 

 

-more-


 

18

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

SUMMARY OF CREDIT QUALITY DATA, CONTINUED

(Dollars in thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Change from

 

 

 

Mar 31,

 

Dec 31,

 

Sep 30,

 

Jun 30,

 

Mar 31,

 

Dec 31,

 

Mar 31,

 

 

 

2013

 

2012

 

2012

 

2012

 

2012

 

2012

 

2012

 

Other Real Estate Owned

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other real estate owned (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate

 

$

46,404

 

$

69,599

 

$

85,764

 

$

83,176

 

$

84,996

 

$

(23,195)

 

$

(38,592)

 

Commercial real estate

 

25,359

 

27,379

 

34,662

 

42,700

 

42,232

 

(2,020)

 

(16,873)

 

Total other real estate owned

 

$

71,763

 

$

96,978

 

$

120,426

 

$

125,876

 

$

127,228

 

$

(25,215)

 

$

(55,465)