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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):

July 23, 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 July 23, 2013, attached to this Form 8-K as Exhibit 99.1, announcing its results of operations for the quarter ended June 30, 2013.

 

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

 

Item 7.01 Regulation FD Disclosure.

 

Information is being furnished herein in Exhibit 99.2 with respect to the slide presentation prepared for use with the press release.  This information includes selected financial and operational information through the second 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 July 23, 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 July 23, 2013

 

 

 

99.2

 

Slide presentation prepared for use with the Earnings
Release, dated July 23, 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:  July 23, 2013

 

3


(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 $34.1 Million, or 21 Cents Per Share

 

SECOND QUARTER HIGHLIGHTS

-  Total revenue of $301.8 million, up 3.4 percent from the first quarter of 2013

-  Pre-tax pre-provision profit of $93.3 million, up 6.3 percent from the first quarter of 2013

-  Net interest margin maintained at 4.72 percent annualized

-  Provision for credit losses of $32.6 million, down 15.1 percent from the first quarter of 2013

-  Non-accrual loans and leases and other real estate owned decreased $70.4 million, or 17 percent, from the first quarter of 2013

-  Announced common and preferred stock dividend payments payable August 30, 2013 and September 3, 2013, respectively

 

 

 

Summary of Financial Results

Table 1

(Dollars in thousands, except per-share data)

 

 

 

 

 

 

 

Percent Change

 

 

 

 

 

 

 

 

2Q

 

1Q

 

2Q

 

2Q13 vs

 

2Q13 vs

 

YTD

 

YTD

 

Percent

 

 

2013

 

2013

 

2012

 

1Q13

 

2Q12

 

2013

 

2012 (1)

 

Change

Net income (loss)

 

$

34,057

 

$

25,450

 

$

31,531

 

33.8

 %

8.0

 %

$

59,507

 

$

(251,363

)

N.M.%  

Net interest income

 

202,044

 

199,091

 

198,224

 

1.5

 

1.9

 

401,135

 

378,397

 

6.0      

Pre-tax pre-provision profit(2)

 

93,311

 

87,742

 

108,118

 

6.3

 

(13.7

)

181,053

 

178,696

 

1.3      

Diluted earnings (loss) per common share

 

.21

 

.16

 

.20

 

31.3

 

5.0

 

.37

 

(1.58

)

N.M.      

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Ratios(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

.90

 %

.70

 %

.76

 %

 

 

 

 

.80

 %

(2.71

)%

 

Return on average common equity

 

8.39

 

6.36

 

8.13

 

 

 

 

 

7.39

 

(29.84

)

 

Net interest margin

 

4.72

 

4.72

 

4.86

 

 

 

 

 

4.72

 

4.49

 

 

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

 

.70

 

1.06

 

1.18

 

 

 

 

 

.88

 

1.12

 

 

 

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

(2) Pre-tax pre-provision profit (“PTPP”) is calculated as total revenues less non-interest expense. Year-to-date 2012 PTPP excludes the non-recurring net loss of $473.8 million related to the balance sheet repositioning completed in the first quarter of 2012.

(3) Annualized.

N.M. Not Meaningful.

 



 

2

 

WAYZATA, MN, July 23, 2013 – TCF Financial Corporation (“TCF” or the “Company”) (NYSE: TCB) today reported net income for the second quarter of 2013 of $34.1 million, compared with net income of $31.5 million for the second quarter of 2012 (inclusive of a net after-tax gain of $8.2 million from the sale of Visa® Class B stock), and compared with net income of $25.5 million for the first quarter of 2013. Diluted earnings per common share was 21 cents for the second quarter of 2013, compared with diluted earnings per common share of 20 cents for the second quarter of 2012 (inclusive of a net after-tax gain of 5 cents per common share related to the sale of Visa Class B stock) and diluted earnings per common share of 16 cents for the first quarter of 2013.

 

TCF reported net income for the first six months of 2013 of $59.5 million, compared with a net loss of $251.4 million for the same period in 2012 (inclusive of a net after-tax charge of $295.8 million, or $1.87 per common share, related to a balance sheet repositioning involving certain investments and borrowings in the first quarter of 2012 and a net after-tax gain of $8.2 million, or 5 cents per common share, related to the sale of Visa® Class B stock in the second quarter of 2012). Diluted earnings per common share was 37 cents for the first six months of 2013, compared with a diluted loss per common share of $1.58 for the same period in 2012 (earnings per common share of 23 cents before the balance sheet repositioning charge and the gain related to the sale of Visa® Class B stock).

 

-more-

 



 

3

 

Chairman’s Statement

 

“During the second quarter, TCF experienced solid increases throughout its multiple core revenue sources and another quarter of solid improvement in credit trends,” said William A. Cooper, Chairman and Chief Executive Officer. “Over the last three quarters, TCF has seen continued improvement in our credit metrics, particularly in the consumer real estate portfolio where home values have risen and consumer confidence has strengthened, and we have maintained strong performance in our national businesses.

 

“TCF made strategic investments in 2012 to position the Company for 2013 and beyond. The Company has made good progress in the first half of 2013 executing on these strategic initiatives, including disciplined loan and lease growth, diversifying our revenue sources, improving our credit performance, and expanding our deposit account base.”

 

-more-

 



 

4

 

Revenue

 

Total Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 2

 

 

 

 

 

 

 

 

 

Percent Change

 

 

 

 

 

 

 

 

 

 

2Q

 

1Q

 

2Q

 

2Q13 vs

 

2Q13 vs

 

YTD

 

YTD

 

Percent

 

(Dollars in thousands)

 

2013

 

2013

 

2012

 

1Q13

 

2Q12

 

2013

 

2012

 

Change

 

Net interest income

 

$

202,044

 

$

199,091

 

$

198,224

 

1.5

 %

1.9

 %

$

401,135

 

$

378,397

 

6.0

 %

Fees and other revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees and service charges

 

41,572

 

39,323

 

48,090

 

5.7

 

(13.6

)

80,895

 

89,946

 

(10.1

)

Card revenue

 

13,270

 

12,417

 

13,530

 

6.9

 

(1.9

)

25,687

 

26,737

 

(3.9

)

ATM revenue

 

5,828

 

5,505

 

6,276

 

5.9

 

(7.1

)

11,333

 

12,475

 

(9.2

)

Total banking fees

 

60,670

 

57,245

 

67,896

 

6.0

 

(10.6

)

117,915

 

129,158

 

(8.7

)

Leasing and equipment finance

 

22,874

 

16,460

 

23,207

 

39.0

 

(1.4

)

39,334

 

46,074

 

(14.6

)

Gains on sales of auto loans

 

8,135

 

7,146

 

5,496

 

13.8

 

48.0

 

15,281

 

7,746

 

97.3

 

Gains on sales of consumer real estate loans

 

4,069

 

8,126

 

-

 

(49.9

)

N.M

.

12,195

 

-

 

N.M

.

Other

 

4,035

 

3,726

 

3,168

 

8.3

 

27.4

 

7,761

 

5,523

 

40.5

 

Total fees and other revenue

 

99,783

 

92,703

 

99,767

 

7.6

 

-

 

192,486

 

188,501

 

2.1

 

Subtotal

 

301,827

 

291,794

 

297,991

 

3.4

 

1.3

 

593,621

 

566,898

 

4.7

 

Gains on securities, net

 

-

 

-

 

13,116

 

N.M

.

(100.0

)

-

 

89,727

 

(100.0

)

Total revenue

 

$

301,827

 

$

291,794

 

$

311,107

 

3.4

 

(3.0

)

$

593,621

 

$

656,625

 

(9.6

)

Net interest margin (1)

 

4.72

 %

4.72

 %

4.86

 %

 

 

 

 

4.72

 %

4.49

 %

 

 

Fees and other revenue as a % of total revenue

 

33.06

 

31.77

 

32.07

 

 

 

 

 

32.43

 

28.71

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N.M. Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

·                 Net interest income for the second quarter of 2013 increased $3.8 million, or 1.9 percent, compared with the second quarter of 2012. This increase was due to higher average loan balances primarily from the auto finance and inventory finance portfolios as a result of continued growth in those businesses, partially offset by lower average balances of consumer real estate loans due to various sales that occurred in the second half of 2012 and the first half of 2013. The increase was also due to a reduced cost of borrowings from the redemption of trust preferred securities in July 2012.

·                 Net interest income for the second quarter of 2013 increased $3 million, or 1.5 percent, compared with the first quarter of 2013.  The increase was primarily due to higher average loan balances primarily from continued growth in the auto finance portfolio and a seasonally high inventory finance portfolio. These increases were partially offset by reduced interest income from lower average balances of consumer real estate loans as a result of various loan sales that occurred during the second quarter of 2013 and the run-off of first mortgages, compared with the first quarter of 2013.

 

-more-

 



 

5

 

·                 Net interest margin in the second quarter of 2013 was 4.72 percent, compared with 4.86 percent in the second quarter of 2012 and remained unchanged from the first quarter of 2013. The decrease from the second quarter of 2012 was primarily due to increased cash held at the Federal Reserve and lower yields as new originations in our lending business continued to be impacted by the low interest rate environment. These decreases were partially offset by the reduced cost of borrowings due to the redemption of trust preferred securities in July 2012.

 

Non-interest Income

 

·                 Fees and service charges in the second quarter of 2013 were $41.6 million, down $6.5 million, or 13.6 percent, from the second quarter of 2012 and up $2.2 million, or 5.7 percent, from the first quarter of 2013. The decrease from the second quarter of 2012 was due to the elimination of the monthly maintenance fee on deposit products through the reintroduction of free checking, partially offset by a higher account base. The increase from the first quarter of 2013 was primarily due to higher seasonal transaction activity during the second quarter of 2013, as well as growth in the account base for the fourth consecutive quarter driven by the reintroduction of free checking.

·                 Leasing and equipment finance revenue was $22.9 million during the second quarter of 2013, up $6.4 million, or 39 percent, from the first quarter of 2013. The increase was primarily due to higher sales-type lease revenue on the leasing and equipment finance portfolio as a result of customer-driven events.

·                 TCF sold $196.9 million, $144.1 million and $179.8 million of auto loans during the second quarters of 2013 and 2012, and the first quarter of 2013, respectively, resulting in gains in the same respective periods.

·                 TCF sold $139.2 million and $279.2 million of consumer real estate loans during the second quarter of 2013 and the first quarter of 2013, respectively, resulting in gains in the same respective periods. There were no sales of consumer real estate loans during the second quarter of 2012.

 

-more-

 



 

6

 

Loans and Leases

 

Period-End and Average Loans and Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 3

 

 

 

 

 

 

 

 

Percent Change

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

2Q

 

1Q

 

2Q

 

2Q13 vs

 

2Q13 vs

 

YTD

 

YTD

 

Percent

 

 

 

2013

 

2013

 

2012

 

1Q13

 

2Q12

 

2013

 

2012

 

Change

 

Period-End:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate

 

$

6,356,426

 

$

6,418,666

 

$

6,811,784

 

(1.0

)%

(6.7

)%

 

 

 

 

 

 

Commercial

 

3,350,334

 

3,334,716

 

3,523,070

 

.5

 

(4.9

)

 

 

 

 

 

 

Leasing and equipment finance

 

3,251,703

 

3,185,234

 

3,151,105

 

2.1

 

3.2

 

 

 

 

 

 

 

Inventory finance

 

1,713,528

 

1,931,363

 

1,457,263

 

(11.3

)

17.6

 

 

 

 

 

 

 

Auto finance

 

882,202

 

719,666

 

262,188

 

22.6

 

N.M

.

 

 

 

 

 

 

Other

 

25,099

 

23,701

 

29,094

 

5.9

 

(13.7

)

 

 

 

 

 

 

Total

 

$

15,579,292

 

$

15,613,346

 

$

15,234,504

 

(.2

)

2.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate

 

$

6,430,685

 

$

6,556,426

 

$

6,793,415

 

(1.9

)

(5.3

)

$

6,493,208

 

$

6,819,239

 

(4.8

)%

Commercial

 

3,336,406

 

3,345,780

 

3,492,049

 

(.3

)

(4.5

)

3,341,067

 

3,474,885

 

(3.9

)

Leasing and equipment finance

 

3,236,799

 

3,199,499

 

3,145,914

 

1.2

 

2.9

 

3,218,252

 

3,137,122

 

2.6

 

Inventory finance

 

1,875,810

 

1,686,364

 

1,571,004

 

11.2

 

19.4

 

1,780,058

 

1,353,469

 

31.5

 

Auto finance

 

823,102

 

670,096

 

223,893

 

22.8

 

N.M

.

747,022

 

154,728

 

N.M

.

Other

 

13,060

 

13,641

 

17,647

 

(4.3

)

(26.0

)

13,348

 

17,612

 

(24.2

)

Total

 

$

15,715,862

 

$

15,471,806

 

$

15,243,922

 

1.6

 

3.1

 

$

15,592,955

 

$

14,957,055

 

4.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N.M. Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·                 Loans and leases were $15.6 billion at June 30, 2013, an increase of $344.8 million, or 2.3 percent, compared with June 30, 2012. Quarterly average loans and leases were $15.7 billion for the second quarter of 2013, an increase of $471.9 million, or 3.1 percent, compared with the second quarter of 2012. The increases in period-end and average loans and leases were primarily due to the continued growth of auto finance as TCF continues to expand that business, as well as an increase in the inventory finance portfolio. These increases were partially offset by decreases in consumer real estate loans driven by ongoing sales and a decline in originations of first mortgages.

 

-more-

 



 

7

 

Credit Quality

 

 

 

Credit Trends

Table 4

 

 

(Dollars in millions)

(At or for the Quarter Ended)

 

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

(2) Excludes $81.5 million, $122.1 million, $117.7 million and $103.2 million of non-accrual assets at June 30, 2013, 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 sixth consecutive quarter.  The over 60-day delinquency rate excluding acquired portfolios and non-accrual loans and leases at June 30, 2013 was .52 percent, down from .53 percent at March 31, 2013 and .74 percent at June 30, 2012. The decrease from June 30, 2012 was primarily a result of reduced delinquencies in the consumer real estate portfolio.

·                 Net charge-offs decreased $13.3 million from the first quarter of 2013 and decreased $17.2 million from the second quarter of 2012, respectively, primarily due to improved credit quality in the consumer real estate and commercial portfolios.

·                 Non-accrual loans and leases were $278.5 million at June 30, 2013, a decrease of $64.9 million, or 18.9 percent, from March 31, 2013 and a decrease of $46 million, or 14.2 percent, from June 30, 2012. The reduction in the non-accrual consumer real estate balance from March 31, 2013 was primarily due to the sale of $40.5 million of loans during the second quarter of 2013. The decrease from March 31, 2013 and

 

-more-

 



 

8

 

June 30, 2012 was also due to improved credit quality in the commercial and consumer real estate portfolios resulting in fewer commercial and consumer loans entering non-accrual status.

·                 Other real estate owned was $66.2 million at June 30, 2013, a decrease of $5.5 million from March 31, 2013, and a decrease of $59.6 million from June 30, 2012. The decrease from June 30, 2012 was primarily due to a portfolio sale of 184 consumer properties during the first quarter of 2013. Additionally, the decrease from both periods was due to a decrease in the number of consumer real estate loans transferred from non-accrual status.

·                 Provision for credit losses was $32.6 million for the second quarter of 2013, a decrease of $5.8 million from the first quarter of 2013 and a decrease of $21.5 million from the second quarter of 2012.  The decrease from the first quarter of 2013 was primarily due to decreased net charge-offs in the consumer real estate portfolio.  The decrease in provision from the second quarter of 2012 was primarily due to decreased net charge-offs in the consumer real estate and commercial portfolios.

 

-more-

 



 

9

 

Deposits

 

Average Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 5

 

 

 

 

 

 

 

 

 

Percent Change

 

 

 

 

 

 

(Dollars in thousands)

 

2Q

 

1Q

 

2Q

 

2Q13 vs

 

2Q13 vs

 

YTD

 

YTD

 

Percent

 

 

 

 

2013

 

2013

 

2012

 

1Q13

 

2Q12

 

2013

 

2012

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$

4,884,433

 

$

4,784,945

 

$

4,636,701

 

2.1

 %

5.3

 %

$

4,834,964

 

$

4,600,882

 

5.1

Savings

 

6,082,200

 

6,114,219

 

6,053,264

 

(.5

)

.5

 

6,098,121

 

5,979,191

 

2.0

 

Money market

 

791,859

 

815,374

 

748,016

 

(2.9

)

5.9

 

803,551

 

705,255

 

13.9

 

Subtotal

 

11,758,492

 

11,714,538

 

11,437,981

 

.4

 

2.8

 

11,736,636

 

11,285,328

 

4.0

 

Certificates

 

2,360,881

 

2,323,267

 

1,608,653

 

1.6

 

46.8

 

2,342,178

 

1,372,164

 

70.7

 

Total average deposits

 

$

14,119,373

 

$

14,037,805

 

$

13,046,634

 

.6

 

8.2

 

$

14,078,814

 

$

12,657,492

 

11.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average interest rate on deposits (1)

 

.25%

 

.28%

 

.31%

 

 

 

 

 

.27%

 

.31%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·                 Total average deposits for the second quarter of 2013 increased $1.1 billion, or 8.2 percent, from the second quarter of 2012 and increased $81.6 million, or .6 percent, from the first quarter of 2013, primarily due to special programs for certificates of deposit and the reintroduction of free checking.

·                 The average interest rate on deposits in the second quarter of 2013 was .25 percent, down six basis points from the second quarter of 2012 and down three basis points from the first quarter of 2013, primarily due to declines in average interest rates on various savings accounts.

 

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10

 

Non-interest Expense

 

Non-interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 6

 

 

 

 

 

 

 

 

 

 

Percent Change

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

2Q

 

1Q

 

2Q

 

2Q13 vs

 

2Q13 vs

 

 

YTD

 

YTD

 

Percent

 

 

 

 

2013

 

2013

 

2012

 

1Q13

 

2Q12

 

 

2013

 

2012

 

Change

 

Compensation and employee benefits

 

 

$

105,537

 

$

104,229

 

$

97,787

 

1.3

 %

7.9

 % 

 

$

209,766

 

$

193,754

 

8.3

 % 

Occupancy and equipment

 

 

33,062

 

32,875

 

32,731

 

.6

 

1.0

 

 

65,937

 

64,977

 

1.5

 

FDIC insurance

 

 

8,362

 

7,710

 

8,469

 

8.5

 

(1.3

)

 

16,072

 

14,855

 

8.2

 

Operating lease depreciation

 

 

6,150

 

5,635

 

6,417

 

9.1

 

(4.2

)

 

11,785

 

13,148

 

(10.4

)

Advertising and marketing

 

 

5,532

 

5,732

 

5,404

 

(3.5

)

2.4

 

 

11,264

 

8,021

 

40.4

 

Deposit account premiums

 

 

600

 

602

 

1,690

 

(.3

)

(64.5

)

 

1,202

 

7,661

 

(84.3

)

Other

 

 

41,946

 

37,939

 

36,956

 

10.6

 

13.5

 

 

79,885

 

74,252

 

7.6

 

Core operating expenses

 

 

201,189

 

194,722

 

189,454

 

3.3

 

6.2

 

 

395,911

 

376,668

 

5.1

 

Loss on termination of debt

 

 

-

 

-

 

-

 

N.M

.

N.M

.

 

-

 

550,735

 

(100.0

)

Foreclosed real estate and repossessed assets, net

 

 

7,555

 

10,167

 

12,059

 

(25.7

)

(37.3

)

 

17,722

 

23,106

 

(23.3

)

Other credit costs, net

 

 

(228

)

(837

)

1,476

 

72.8

 

(115.4

)

 

(1,065

)

1,188

 

(189.6

)

Total non-interest expense

 

 

$

208,516

 

$

204,052

 

$

202,989

 

2.2

 

2.7

 

 

$

412,568

 

$

951,697

 

(56.6

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N.M. Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·                 Compensation and employee benefits expense for the second quarter of 2013 increased $7.8 million, or 7.9 percent, from the second quarter of 2012 due to increased staff levels to support the growth of auto finance and expenses related to higher commissions based on production results and incentives based on performance.

·                 Foreclosed real estate and repossessed assets expense decreased $4.5 million, or 37.3 percent, from the second quarter of 2012 and decreased $2.6 million, or 25.7 percent, from the first quarter of 2013. The decrease from the second quarter of 2012 was driven by reduced expenses related to fewer consumer real estate and commercial foreclosed properties. The change from the first quarter of 2013 was driven by an acceleration of expense related to a portfolio sale of consumer properties during the first quarter of 2013.

 

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11

 

Capital

 

Capital Information

 

 

 

 

 

 

 

 

Table 7

 

At period end

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per-share data)

 

2Q

 

 

4Q

 

 

 

2013

 

 

2012

 

Total equity

$

1,906,181

 

 

 

$

1,876,643

 

 

 

Book value per common share

$

9.89

 

 

 

$

9.79

 

 

 

Tangible realized common equity to tangible assets (1)

 

7.77

 %

 

 

 

7.52

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk-based capital (2)

 

 

 

 

 

 

 

 

 

 

Tier 1

$

1,695,092

 

11.27

 %

$

1,633,336

 

11.09

 % 

Total

 

2,034,312

 

13.53

 

 

2,007,835

 

13.63

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage capital

$

1,695,092

 

9.34

 %

$

1,633,336

 

9.21

 % 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 common capital (3)

$

1,415,190

 

9.41

 %

$

1,356,826

 

9.21

 % 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

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

 

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

 

 

 

 

·                 On July 22, 2013, the Board of Directors of TCF declared a regular quarterly cash dividend of 5 cents per common share payable on August 30, 2013, to stockholders of record at the close of business on August 15, 2013. TCF also declared dividends on the 7.50% Series A and 6.45% Series B Non-Cumulative Perpetual Preferred Stock, both payable on September 3, 2013, to stockholders of record at the close of business on August 15, 2013.

 

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12

 

Webcast Information

A live webcast of TCF’s conference call to discuss the second quarter earnings will be hosted at TCF’s website, http://ir.tcfbank.com, on July 23, 2013 at 8:00 a.m. CT.  A slide presentation for the call will be available on the website prior to the call. Additionally, the webcast will be available for replay at TCF’s website after the conference call. The website also includes free access to company news releases, TCF’s annual report, investor presentations and SEC filings.

 

 

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

 

 

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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 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, changes in the allowance for loan and lease losses dictated by new market conditions or regulatory requirements, or the inability of home equity line borrowers to make increased payments caused by increased interest rates or amortization of principal; 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 securities markets directly or indirectly affecting TCF’s ability to sell assets or to fund

 

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14

 

its operations; diminished unsecured borrowing capacity resulting from TCF credit rating downgrades and unfavorable conditions in the credit markets that restrict or limit various funding sources; costs associated with new regulatory requirements or interpretive guidance relating to liquidity; uncertainties relating to regulatory requirements or customer opt-in preferences with respect to overdraft fees on point of sale and ATM transactions, 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; slower than anticipated growth in existing or acquired businesses; inability to successfully execute on TCF’s growth strategy through acquisitions or cross-selling opportunities; failure to expand or diversify TCF’s balance sheet through programs or new opportunities; failure to successfully attract and retain new customers, including the failure to attract and retain manufacturers and dealers to expand the inventory finance business; failure to effectuate, and risks of claims related to, sales and securitizations of loans; risks related to new product additions and addition of distribution channels (or entry into new markets) for existing products.

 

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

 

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

(Dollars in thousands, except per-share data)

(Unaudited)

 

 

 

Three Months Ended June 30,

 

Change

 

 

2013

 

2012

 

$

 

%

Interest income:

 

 

 

 

 

 

 

 

 

Loans and leases

 

  $

206,675

 

  $

208,766

 

  $

(2,091)

 

(1.0

)%

Securities available for sale

 

4,637

 

5,816

 

(1,179)

 

(20.3

)

Investments and other

 

6,296

 

3,633

 

2,663

 

73.3

 

Total interest income

 

217,608

 

218,215

 

(607)

 

(.3

)

Interest expense:

 

 

 

 

 

 

 

 

 

Deposits

 

8,851

 

10,197

 

(1,346)

 

(13.2

)

Borrowings

 

6,713

 

9,794

 

(3,081)

 

(31.5

)

Total interest expense

 

15,564

 

19,991

 

(4,427)

 

(22.1

)

Net interest income

 

202,044

 

198,224

 

3,820

 

1.9

 

Provision for credit losses

 

32,591

 

54,106

 

(21,515)

 

(39.8

)

Net interest income after provision for credit losses

 

169,453

 

144,118

 

25,335

 

17.6

 

Non-interest income:

 

 

 

 

 

 

 

 

 

Fees and service charges

 

41,572

 

48,090

 

(6,518)

 

(13.6

)

Card revenue

 

13,270

 

13,530

 

(260)

 

(1.9

)

ATM revenue

 

5,828

 

6,276

 

(448)

 

(7.1

)

Subtotal

 

60,670

 

67,896

 

(7,226)

 

(10.6

)

Leasing and equipment finance

 

22,874

 

23,207

 

(333)

 

(1.4

)

Gain on sales of auto loans

 

8,135

 

5,496

 

2,639

 

48.0

 

Gain on sale of consumer real estate loans

 

4,069

 

-

 

4,069

 

N.M

.

Other

 

4,035

 

3,168

 

867

 

27.4

 

Fees and other revenue

 

99,783

 

99,767

 

16

 

-

 

Gains on securities, net

 

-

 

13,116

 

(13,116)

 

(100.0

)

Total non-interest income

 

99,783

 

112,883

 

(13,100)

 

(11.6

)

Non-interest expense:

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

105,537

 

97,787

 

7,750

 

7.9

 

Occupancy and equipment

 

33,062

 

32,731

 

331

 

1.0

 

FDIC insurance

 

8,362

 

8,469

 

(107)

 

(1.3

)

Operating lease depreciation

 

6,150

 

6,417

 

(267)

 

(4.2

)

Advertising and marketing

 

5,532

 

5,404

 

128

 

2.4

 

Deposit account premiums

 

600

 

1,690

 

(1,090)

 

(64.5

)

Other

 

41,946

 

36,956

 

4,990

 

13.5

 

Subtotal

 

201,189

 

189,454

 

11,735

 

6.2

 

Foreclosed real estate and repossessed assets, net

 

7,555

 

12,059

 

(4,504)

 

(37.3

)

Other credit costs, net

 

(228)

 

1,476

 

(1,704)

 

N.M

.

Total non-interest expense

 

208,516

 

202,989

 

5,527

 

2.7

 

Income before income tax expense

 

60,720

 

54,012

 

6,708

 

12.4

 

Income tax expense

 

19,444

 

20,542

 

(1,098)

 

(5.3

)

Income after income tax expense

 

41,276

 

33,470

 

7,806

 

23.3

 

Income attributable to non-controlling interest

 

2,372

 

1,939

 

433

 

22.3

 

Net income attributable to TCF Financial Corporation

 

38,904

 

31,531

 

7,373

 

23.4

 

Preferred stock dividends

 

4,847

 

-

 

4,847

 

N.M

.

Net income available to common stockholders

 

  $

34,057

 

  $

31,531

 

  $

2,526

 

8.0

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

Basic

 

  $

.21

 

  $

.20

 

  $

.01

 

5.0

 

Diluted

 

.21

 

.20

 

.01

 

5.0

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

  $

.05

 

  $

.05

 

  $

-

 

-

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Basic

 

160,895

 

159,113

 

1,782

 

1.1

 

Diluted

 

161,749

 

159,539

 

2,210

 

1.4

 

 

 

 

 

 

 

 

 

 

 

N.M.  Not meaningful.

 

 

 

 

 

 

 

 

 

 

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16

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

 

 

 

Six Months Ended June 30,

 

Change

 

 

2013

 

2012

 

$

 

%

Interest income:

 

 

 

 

 

 

 

 

 

Loans and leases

 

  $

411,580

 

  $

414,750

 

  $

(3,170)

 

(.8

)%

Securities available for sale

 

9,432

 

24,928

 

(15,496)

 

(62.2

)

Investments and other

 

12,146

 

6,066

 

6,080

 

100.2

 

Total interest income

 

433,158

 

445,744

 

(12,586)

 

(2.8

)

Interest expense:

 

 

 

 

 

 

 

 

 

Deposits

 

18,532

 

19,258

 

(726)

 

(3.8

)

Borrowings

 

13,491

 

48,089

 

(34,598)

 

(71.9

)

Total interest expense

 

32,023

 

67,347

 

(35,324)

 

(52.5

)

Net interest income

 

401,135

 

378,397

 

22,738

 

6.0

 

Provision for credit losses

 

70,974

 

102,648

 

(31,674)

 

(30.9

)

Net interest income after provision for credit losses

 

330,161

 

275,749

 

54,412

 

19.7

 

Non-interest income:

 

 

 

 

 

 

 

 

 

Fees and service charges

 

80,895

 

89,946

 

(9,051)

 

(10.1

)

Card revenue

 

25,687

 

26,737

 

(1,050)

 

(3.9

)

ATM revenue

 

11,333

 

12,475

 

(1,142)

 

(9.2

)

Subtotal

 

117,915

 

129,158

 

(11,243)

 

(8.7

)

Leasing and equipment finance

 

39,334

 

46,074

 

(6,740)

 

(14.6

)

Gain on sales of auto loans

 

15,281

 

7,746

 

7,535

 

97.3

 

Gain on sale of consumer real estate loans

 

12,195

 

-

 

12,195

 

N.M

.

Other

 

7,761

 

5,523

 

2,238

 

40.5

 

Fees and other revenue

 

192,486

 

188,501

 

3,985

 

2.1

 

Gains on securities, net

 

-

 

89,727

 

(89,727)

 

(100.0

)

Total non-interest income

 

192,486

 

278,228

 

(85,742)

 

(30.8

)

Non-interest expense:

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

209,766

 

193,754

 

16,012

 

8.3

 

Occupancy and equipment

 

65,937

 

64,977

 

960

 

1.5

 

FDIC insurance

 

16,072

 

14,855

 

1,217

 

8.2

 

Operating lease depreciation

 

11,785

 

13,148

 

(1,363)

 

(10.4

)

Advertising and marketing

 

11,264

 

8,021

 

3,243

 

40.4

 

Deposit account premiums

 

1,202

 

7,661

 

(6,459)

 

(84.3

)

Other

 

79,885

 

74,252

 

5,633

 

7.6

 

Subtotal

 

395,911

 

376,668

 

19,243

 

5.1

 

Loss on termination of debt

 

-

 

550,735

 

(550,735)

 

(100.0

)

Foreclosed real estate and repossessed assets, net

 

17,722

 

23,106

 

(5,384)

 

(23.3

)

Other credit costs, net

 

(1,065)

 

1,188

 

(2,253)

 

N.M

.

Total non-interest expense

 

412,568

 

951,697

 

(539,129)

 

(56.6

)

Income (loss) before income tax expense (benefit)

 

110,079

 

(397,720)

 

507,799

 

N.M

.

Income tax expense (benefit)

 

37,003

 

(149,702)

 

186,705

 

N.M

.

Income (loss) after income tax expense (benefit)

 

73,076

 

(248,018)

 

321,094

 

N.M

.

Income attributable to non-controlling interest

 

4,198

 

3,345

 

853

 

25.5

 

Net income (loss) attributable to TCF Financial Corporation

 

68,878

 

(251,363)

 

320,241

 

N.M

.

Preferred stock dividends

 

9,371

 

-

 

9,371

 

N.M

.

Net income (loss) available to common stockholders

 

  $

59,507

 

  $

(251,363)

 

  $

310,870

 

N.M

.

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common share:

 

 

 

 

 

 

 

 

 

Basic

 

  $

.37

 

  $

(1.58)

 

  $

1.95

 

N.M

.

Diluted

 

.37

 

(1.58)

 

1.95

 

N.M

.

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

  $

.10

 

  $

.10

 

  $

-

 

-

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Basic

 

160,644

 

158,810

 

1,834

 

1.2

 

Diluted

 

161,443

 

158,810

 

2,633

 

1.7

 

 

 

 

 

 

 

 

 

 

 

N.M.  Not meaningful.

 

 

 

 

 

 

 

 

 

 

-more-

 



 

17

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in thousands)

(Unaudited)

 

 

 

Three Months Ended June 30,

 

Change

 

 

 

2013

 

2012

 

$

 

%

 

Net income attributable to TCF Financial Corporation

$

38,904

$

31,531

$

7,373

 

23.4

%

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

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

 

(34,420)

 

19,868

 

(54,288)

 

N.M.

 

Foreign currency hedge

 

874

 

268

 

606

 

N.M.

 

Foreign currency translation adjustment

 

(973)

 

(324)

 

(649)

 

N.M.

 

Recognized postretirement prior service cost and transition obligation

 

(12)

 

(7)

 

(5)

 

(71.4)

 

Income tax benefit (expense)

 

12,662

 

(7,375)

 

20,037

 

N.M.

 

Total other comprehensive (loss) income

 

(21,869)

 

12,430

 

(34,299)

 

N.M.

 

Comprehensive income

$

17,035

$

43,961

$

(26,926)

 

(61.2)

 

 

 

 

Six Months Ended June 30,

 

Change

 

 

 

2013

 

2012

 

$

 

%

 

Net income (loss) attributable to TCF Financial Corporation

$

68,878

$

(251,363)

$

320,241

 

N.M.

%

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

Reclassification adjustment for securities gains included in net income (loss) attributable to TCF Financial Corporation

 

-

 

(76,967)

 

76,967

 

(100.0)

 

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

 

(48,249)

 

12,100

 

(60,349)

 

N.M.

 

Foreign currency hedge

 

1,411

 

(136)

 

1,547

 

N.M.

 

Foreign currency translation adjustment

 

(1,595)

 

61

 

(1,656)

 

N.M.

 

Recognized postretirement prior service cost and transition obligation

 

(24)

 

(14)

 

(10)

 

(71.4)

 

Income tax benefit

 

17,681

 

23,833

 

(6,152)

 

(25.8)

 

Total other comprehensive loss

 

(30,776)

 

(41,123)

 

10,347

 

25.2

 

Comprehensive income (loss)

$

38,102

$

(292,486)

$

330,588

 

N.M.

 

 

 

 

 

 

 

 

 

 

 

N.M. Not meaningful.

 

 

 

 

 

 

 

 

 

 

-more-

 



 

18

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in thousands, except per-share data)

(Unaudited)

 

 

 

At Jun. 30,

 

At Dec. 31,

 

Change

 

 

2013

 

2012

 

$

 

%

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

1,132,436

 

$

1,100,347

 

$

32,089

 

2.9

%

Investments

 

118,918

 

120,867

 

(1,949)

 

(1.6

)

Securities available for sale

 

620,260

 

712,091

 

(91,831)

 

(12.9

)

Loans and leases held for sale

 

104,933

 

10,289

 

94,644

 

N.M

.

Loans and leases:

 

 

 

 

 

 

 

 

 

Consumer real estate

 

6,356,426

 

6,674,501

 

(318,075)

 

(4.8

)

Commercial

 

3,350,334

 

3,405,235

 

(54,901)

 

(1.6

)

Leasing and equipment finance

 

3,251,703

 

3,198,017

 

53,686

 

1.7

 

Inventory finance

 

1,713,528

 

1,567,214

 

146,314

 

9.3

 

Auto finance

 

882,202

 

552,833

 

329,369

 

59.6

 

Other loans and leases

 

25,099

 

27,924

 

(2,825)

 

(10.1

)

Total loans and leases

 

15,579,292

 

15,425,724

 

153,568

 

1.0

 

Allowance for loan and lease losses

 

(265,599)

 

(267,128)

 

1,529

 

.6

 

Net loans and leases

 

15,313,693

 

15,158,596

 

155,097

 

1.0

 

Premises and equipment, net

 

439,048

 

440,466

 

(1,418)

 

(.3

)

Goodwill

 

225,640

 

225,640

 

-

 

-

 

Other assets

 

444,679

 

457,621

 

(12,942)

 

(2.8

)

Total assets

 

$

18,399,607

 

$

18,225,917

 

$

173,690

 

1.0

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

Checking

 

$

4,931,189

 

$

4,834,632

 

$

96,557

 

2.0

 

Savings

 

6,101,642

 

6,104,104

 

(2,462)

 

-

 

Money market

 

810,249

 

820,553

 

(10,304)

 

(1.3

)

Subtotal

 

11,843,080

 

11,759,289

 

83,791

 

.7

 

Certificates of deposit

 

2,442,504

 

2,291,497

 

151,007

 

6.6

 

Total deposits

 

14,285,584

 

14,050,786

 

234,798

 

1.7

 

Short-term borrowings

 

3,030

 

2,619

 

411

 

15.7

 

Long-term borrowings

 

1,787,728

 

1,931,196

 

(143,468)

 

(7.4

)

Total borrowings

 

1,790,758

 

1,933,815

 

(143,057)

 

(7.4

)

Accrued expenses and other liabilities

 

417,084

 

364,673

 

52,411

 

14.4

 

Total liabilities

 

16,493,426

 

16,349,274

 

144,152

 

.9

 

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; 164,453,669 and 163,428,763 shares issued