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):

July 25, 2014

 


 

 

 

 

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 25, 2014, attached to this Form 8-K as Exhibit 99.1, announcing its results of operations for the quarter ended June 30, 2014.

 

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 2014 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 25, 2014 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. 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.

 

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 25, 2014

 

 

 

99.2

 

Slide presentation prepared for use with the Earnings Release, dated July 25, 2014

 

 

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 25, 2014

 

3

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

 

Exhibit 99.1

 

NEWS RELEASE

 

Investors:

 

Media:

Jason Korstange

 

Mark Goldman

(952) 745-2755

 

(952) 475-7050

 

FOR IMMEDIATE RELEASE

 

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

 

TCF Reports Quarterly Net Income of $53.1 Million, or 29 Cents Per Share,

Up 8 Cents, or 38.1 Percent from the Second Quarter of 2013

 

SECOND QUARTER HIGHLIGHTS

-        Revenue of $310.1 million, up 2.7 percent from the second quarter of 2013

-  Loan and lease originations of $3.5 billion, up 8.6 percent from the second quarter of 2013

-        Average deposits of $14.8 billion, up 4.6 percent from the second quarter of 2013

-  Provision for credit losses of $9.9 million, down 69.6 percent from the second quarter of 2013

-  Non-accrual loans and leases of $260.3 million, down 6.5 percent from the second quarter of 2013

-  Return on average assets of 1.17 percent, up 27 basis points from the second quarter of 2013

-  Return on average tangible common equity of 12.72 percent, up 282 basis points from the second quarter of 2013

 

Summary of Financial Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 1

 

(Dollars in thousands, except per-share data)

 

 

 

 

 

Percent Change

 

 

 

 

 

 

 

 

 

2Q

 

1Q

 

2Q

 

2Q14 vs

 

2Q14 vs

 

YTD

 

YTD

 

Percent

 

 

 

2014

 

2014

 

2013

 

1Q14

 

2Q13

 

2014

 

2013

 

Change

 

Net income attributable to TCF

 

$

53,125

 

$

44,757

 

$

38,904

 

18.7

 %

36.6

 %

$

97,882

 

$

68,878

 

42.1

 %

Net interest income

 

206,101

 

201,274

 

202,044

 

2.4

 

2.0

 

407,375

 

401,135

 

1.6

 

Diluted earnings per common share

 

.29

 

.24

 

.21

 

20.8

 

38.1

 

.54

 

.37

 

45.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Ratios (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax pre-provision return
on average assets 
(2)

 

2.05

 %

1.88

 %

2.04

 %

 

 

 

 

1.96

 %

1.98

 %

 

 

Return on average assets

 

1.17

 

1.00

 

.90

 

 

 

 

 

1.09

 

.80

 

 

 

Return on average common equity

 

10.99

 

9.35

 

8.39

 

 

 

 

 

10.18

 

7.39

 

 

 

Return on average tangible
common equity 
(3)

 

12.72

 

10.89

 

9.90

 

 

 

 

 

11.82

 

8.76

 

 

 

Net interest margin

 

4.65

 

4.66

 

4.72

 

 

 

 

 

4.66

 

4.72

 

 

 

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

 

.45

 

.43

 

.70

 

 

 

 

 

.44

 

.88

 

 

 

(1) Annualized.

(2) Pre-tax pre-provision profit is calculated as total revenues less non-interest expense.

(3) See “Reconciliation of GAAP to Non-GAAP Financial Measures” table.

 


 

2

 

WAYZATA, MN, July 25, 2014 – TCF Financial Corporation (“TCF” or the “Company”) (NYSE: TCB) today reported net income of $53.1 million for the second quarter of 2014, compared with net income of $38.9 million for the second quarter of 2013, and net income of $44.8 million for the first quarter of 2014. Diluted earnings per common share was 29 cents for the second quarter of 2014, compared with 21 cents for the second quarter of 2013, and 24 cents for the first quarter of 2014.

 

TCF reported net income of $97.9 million for the first six months of 2014, compared with net income of $68.9 million for the same period in 2013. Diluted earnings per common share was 54 cents for the first six months of 2014, compared with 37 cents for the same period in 2013.

 

Chairman’s Statement

 

“TCF’s financial metrics continued to improve in the second quarter,” said William A. Cooper, Chairman and Chief Executive Officer. “TCF earned 29 cents per common share during the quarter, up 38 percent from a year ago. Return on average assets was 1.17 percent while return on average tangible common equity was 12.72 percent.

 

“TCF experienced strong loan and lease originations and deposit growth. Our net interest margin was 4.65 percent, relatively flat with the first quarter of 2014. Fee income was strong and overall credit quality showed continued improvement. The efforts of our employees and the support from our Board of Directors have contributed to the transformation of the Company which is reflected in our current performance. TCF’s net income of $53.1 million during the quarter was the highest level since the fourth quarter of 2007.”

 

-more-

 


 

3

 

Revenue

 

Total Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 2

 

 

 

 

 

 

 

 

 

 

  Percent Change

 

 

 

 

 

 

 

(Dollars in thousands)

 

2Q

 

1Q

 

2Q

 

2Q14
vs

 

2Q14
vs

 

YTD

 

YTD

 

Percent

 

 

 

2014

 

2014

 

2013

 

1Q14

 

2Q13

 

2014

 

2013

 

Change

 

Net interest income

 

$

206,101

 

$

201,274

 

$

202,044

 

2.4

 %

 

2.0

 %

 

$

407,375

 

$

401,135

 

1.6

 % 

Fees and other revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees and service charges

 

38,035

 

36,619

 

41,572

 

3.9

 

 

(8.5

)

 

74,654

 

80,895

 

(7.7

)

Card revenue

 

13,249

 

12,250

 

13,270

 

8.2

 

 

(.2

)

 

25,499

 

25,687

 

(.7

)

ATM revenue

 

5,794

 

5,319

 

5,828

 

8.9

 

 

(.6

)

 

11,113

 

11,333

 

(1.9

)

Total banking fees

 

57,078

 

54,188

 

60,670

 

5.3

 

 

(5.9

)

 

111,266

 

117,915

 

(5.6

)

Leasing and equipment finance

 

23,069

 

21,980

 

22,609

 

5.0

 

 

2.0

 

 

45,049

 

38,813

 

16.1

 

Gains on sales of auto loans, net

 

7,270

 

8,470

 

8,135

 

(14.2

)

 

(10.6

)

 

15,740

 

15,281

 

3.0

 

Gains on sales of consumer real
estate loans, net

 

8,151

 

11,706

 

4,069

 

(30.4

)

 

100.3

 

 

19,857

 

12,195

 

62.8

 

Servicing fee income

 

4,892

 

4,307

 

3,128

 

13.6

 

 

56.4

 

 

9,199

 

5,884

 

56.3

 

Other

 

2,789

 

2,382

 

1,172

 

17.1

 

 

138.0

 

 

5,171

 

2,398

 

115.6

 

Total fees and other revenue

 

103,249

 

103,033

 

99,783

 

.2

 

 

3.5

 

 

206,282

 

192,486

 

7.2

 

Subtotal

 

309,350

 

304,307

 

301,827

 

1.7

 

 

2.5

 

 

613,657

 

593,621

 

3.4

 

Gains on securities, net

 

767

 

374

 

-

 

105.1

 

 

N.M

.

 

1,141

 

-

 

N.M.

 

Total revenue

 

$

310,117

 

$

304,681

 

$

301,827

 

1.8

 

 

2.7

 

 

$

614,798

 

$

593,621

 

3.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (1)

 

4.65

%

4.66

%

4.72

%

 

 

 

 

 

 

4.66

%

4.72

%

 

 

Fees and other revenue as
a % of total revenue

 

33.29

 

33.82

 

33.06

 

 

 

 

 

 

 

33.55

 

32.43

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N.M. Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

·                  Net interest income for the second quarter of 2014 increased $4.1 million, or 2 percent, compared with the second quarter of 2013. The increase from the second quarter of 2013 was driven by higher average loan and lease balances in the auto finance, inventory finance and leasing and equipment finance businesses as well as a reduced cost of borrowings. This increase was partially offset by downward pressure on yields across the lending businesses in this increasingly competitive low interest rate environment as well as lower average balances of consumer real estate and higher yielding commercial fixed-rate loans due to run-off exceeding originations.

 

·                  Net interest income for the second quarter of 2014 increased $4.8 million, or 2.4 percent, compared with first quarter of 2014. The increase was primarily due to higher average loan balances in the auto finance portfolio due to continued growth and in the inventory finance portfolio due to seasonality. The increase was partially offset by reduced interest income from lower average balances of consumer real estate loans.

 

·                  Net interest margin in the second quarter of 2014 was 4.65 percent, compared with 4.72 percent in the second quarter of 2013 and remained relatively flat compared to the first quarter of 2014. The decrease from the second quarter of 2013 was primarily due to downward pressure on origination yields in consumer real estate due to the increasingly competitive low interest rate environment as well as a shift in commercial real estate from higher yielding fixed-rate loans to lower yielding variable-rate loans due to marketplace demand.

 

-more-

 


 

4

 

Non-interest Income

 

·                  Fees and service charges in the second quarter of 2014 were $38 million, down $3.5 million, or 8.5 percent, from the second quarter of 2013 and up $1.4 million, or 3.9 percent, from the first quarter of 2014. The decrease from the second quarter of 2013 was primarily due to customer behavior changes, as well as higher average checking account balances per customer. The increase from the first quarter of 2014 was primarily due to seasonality resulting in an increase in transaction activity and a decrease in average checking account balances per customer.

 

·                  Leasing and equipment finance revenue was $23.1 million during the second quarter of 2014, up $460 thousand, or 2 percent, from the second quarter of 2013 and up $1.1 million, or 5 percent, from the first quarter of 2014. The increases in both periods were primarily due to customer-driven events impacting sales-type lease revenue.

 

·                  TCF sold $224.2 million, $139.2 million and $347.4 million of consumer real estate loans during the second quarters of 2014 and 2013, and the first quarter of 2014, respectively, resulting in net gains in the same respective periods.

 

·                  TCF sold $220.2 million, $196.9 million and $261.7 million of auto loans during the second quarters of 2014 and 2013, and the first quarter of 2014, respectively, resulting in net gains in the same respective periods.

 

·                  Servicing fee income was $4.9 million on $2.6 billion of loans and leases serviced for others during the second quarter of 2014 compared to $3.1 million on $1.6 billion of loans and leases serviced for others during the second quarter of 2013 and $4.3 million on $2.4 billion of loans and leases serviced for others during the first quarter of 2014. The increases in servicing fee income in both periods were primarily due to an increase in consumer real estate and auto finance loans serviced for others.

 

-more-

 


 

5

 

Loans and Leases

 

Period-End and Average Loans and Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 3

 

 

 

 

 

 

 

 

 

    Percent Change

 

 

 

 

 

 

 

(Dollars in thousands)

 

2Q

 

1Q

 

2Q

 

2Q14 vs

 

2Q14 vs

 

YTD

 

YTD

 

Percent

 

 

 

2014

 

2014

 

2013

 

1Q14

 

2Q13

 

2014

 

2013

 

Change

 

Period-End:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First mortgage lien

 

$

3,542,324

 

$

3,668,245

 

$

3,982,481

 

(3.4

)%

(11.1

)%

 

 

 

 

 

 

Junior lien

 

2,480,763

 

2,407,286

 

2,373,945

 

3.1

 

4.5

 

 

 

 

 

 

 

Total consumer real estate

 

6,023,087

 

6,075,531

 

6,356,426

 

(.9

)

(5.2

)

 

 

 

 

 

 

Commercial

 

3,093,161

 

3,136,421

 

3,350,334

 

(1.4

)

(7.7

)

 

 

 

 

 

 

Leasing and equipment finance

 

3,526,264

 

3,456,759

 

3,251,703

 

2.0

 

8.4

 

 

 

 

 

 

 

Inventory finance

 

1,880,667

 

2,123,808

 

1,713,528

 

(11.4

)

9.8

 

 

 

 

 

 

 

Auto finance

 

1,502,860

 

1,400,527

 

882,202

 

7.3

 

70.4

 

 

 

 

 

 

 

Other

 

24,486

 

22,550

 

25,099

 

8.6

 

(2.4

)

 

 

 

 

 

 

Total

 

$

16,050,525

 

$

16,215,596

 

$

15,579,292

 

(1.0

)

3.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First mortgage lien

 

$

3,606,635

 

$

3,719,961

 

$

4,068,020

 

(3.0

)%

(11.3

)%  

$

3,662,985

 

$

4,127,209

 

(11.2

)% 

Junior lien

 

2,498,151

 

2,607,851

 

2,362,665

 

(4.2

)

5.7

 

2,552,698

 

2,365,999

 

7.9

 

Total consumer real estate

 

6,104,786

 

6,327,812

 

6,430,685

 

(3.5

)

(5.1

)

6,215,683

 

6,493,208

 

(4.3

)

Commercial

 

3,131,320

 

3,122,066

 

3,336,406

 

.3

 

(6.1

)

3,126,718

 

3,341,067

 

(6.4

)

Leasing and equipment finance

 

3,500,647

 

3,434,691

 

3,236,799

 

1.9

 

8.2

 

3,467,851

 

3,218,252

 

7.8

 

Inventory finance

 

2,061,437

 

1,862,745

 

1,875,810

 

10.7

 

9.9

 

1,968,431

 

1,780,058

 

10.6

 

Auto finance

 

1,518,194

 

1,327,232

 

823,102

 

14.4

 

84.4

 

1,423,240

 

747,022

 

90.5

 

Other

 

12,040

 

13,273

 

13,060

 

(9.3

)

(7.8

)

12,654

 

13,348

 

(5.2

)

Total

 

$

16,328,424

 

$

16,087,819

 

$

15,715,862

 

1.5

 

3.9

 

$

16,214,577

 

$

15,592,955

 

4.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·                  Loans and leases were $16.1 billion at June 30, 2014, an increase of $471.2 million, or 3 percent, compared with June 30, 2013 and a decrease of $165.1 million, or 1 percent, compared with March 31, 2014. Average loans and leases were $16.3 billion for the second quarter of 2014, an increase of $612.6 million, or 3.9 percent, compared with the second quarter of 2013 and an increase of $240.6 million, or 1.5 percent, compared with the first quarter of 2014.

 

The increase from the second quarter of 2013 for period-end loans and leases and the increase from both periods for average loans and leases were primarily due to the continued growth of the auto finance portfolio as TCF expands the number of active dealers and sales force in its network and further penetrates existing territories, as well as an increase in the leasing and equipment finance portfolio. These increases were partially offset by a decrease in commercial real estate loans, primarily due to run-off exceeding new originations, as well as a decrease in total consumer real estate loans driven by run-off in the first mortgage real estate business and on-going loan sales.

 

The decrease from the first quarter of 2014 for period-end loans and leases was primarily due to seasonality within the inventory finance business, partially offset by the continued growth of the auto finance portfolio, coupled with assets moved to held for sale at the end of the quarter in anticipation of executing the Company’s inaugural auto loan securitization.

 

-more-

 


 

6

 

·                  Loan and lease originations were $3.5 billion for the second quarter of 2014, an increase of $273.8 million, or 8.6 percent, compared with the second quarter of 2013 and an increase of $311.2 million, or 9.9 percent, compared with the first quarter of 2014. The increase from the second quarter of 2013 was primarily due to the continued growth in auto finance and an increase in inventory finance and leasing and equipment finance originations as a result of an improving economic environment, partially offset by a decrease in commercial originations. The increase from the first quarter of 2014 was primarily due to an increase in consumer real estate, auto finance and leasing and equipment finance originations, partially offset by seasonality within the inventory finance business.

 

 

·                  Non-accrual loans and leases and other real estate owned totaled $325.4 million at June 30, 2014, a decrease of $19.3 million, or 5.6 percent, from June 30, 2013, and a decrease of $4.8 million, or 1.4 percent, from March 31, 2014. The decrease from June 30, 2013 was primarily due to improving credit quality trends and continued efforts to actively work out problem loans in the commercial portfolio, partially offset by $48.6 million of delinquent loans being transferred to non-accrual status due to a change in the non-accrual policy for consumer real estate loans during the third quarter of 2013. The decrease from March 31, 2014 was driven by improved credit quality in the consumer real estate and commercial portfolios.

 

 

-more-

 


 

7

 

·                  The over 60-day delinquency rate, excluding acquired portfolios and non-accrual loans and leases, was .18 percent at June 30, 2014, down from .52 percent at June 30, 2013, and down slightly from .19 percent at March 31, 2014. The decrease from June 30, 2013 was primarily a result of reduced over 60-day delinquencies in the consumer real estate portfolio due to a change in the non-accrual policy for consumer real estate loans during the third quarter of 2013, which increased non-accrual loans and leases, along with stabilization of our consumer real estate portfolio as property values improved in our markets.

 

·                  Net charge-offs were $18.4 million for the second quarter of 2014, a decrease of $9.3 million, or 33.7 percent, from the second quarter of 2013, and an increase of $939 thousand, or 5.4 percent, from the first quarter of 2014. The decrease from the second quarter of 2013 was primarily due to improved credit quality in the consumer real estate portfolio as home values improved and incident rates of default declined. The increase from the first quarter of 2014 was driven by one previously reserved commercial loan charge-off. Consumer real estate net charge-offs decreased for the seventh consecutive quarter.

 

·                  Provision for credit losses was $9.9 million for the second quarter of 2014, a decrease of $22.7 million, or 69.6 percent, from the second quarter of 2013, and a decrease of $4.6 million, or 31.6 percent, from the first quarter of 2014. The decrease from the second quarter of 2013 was primarily due to decreased net charge-offs in the consumer real estate portfolio resulting from improved home values and a reduction in incidents of default. The decrease from the first quarter of 2014 was due to reduced reserve requirements in the commercial and consumer real estate portfolios as credit quality in those portfolios improved.

 

-more-


 

8

 

Deposits

 

Average Deposits

    

                        

    

                        

    

                        

    

 

    

 

    

                        

    

                        

    

Table 5

    

                                                                        

 

 

 

 

 

 

 

Percent Change

 

 

 

 

 

 

 

(Dollars in thousands)

 

2Q

 

1Q

 

2Q

 

2Q14 vs   

 

2Q14 vs   

 

YTD

 

YTD

 

Percent

 

 

 

2014

 

2014

 

2013

 

1Q14   

 

2Q13   

 

2014

 

2013

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$

5,098,650

 

$

5,016,118

 

$

4,884,433

 

1.6 %

 

4.4 %

 

$

5,057,612

 

$

4,834,964

 

4.6 

Savings

 

5,908,219

 

6,142,950

 

6,082,200

 

(3.8)   

 

(2.9)   

 

6,024,936

 

6,098,121

 

(1.2)

 

Money market

 

1,019,543

 

819,312

 

791,859

 

24.4    

 

28.8    

 

919,981

 

803,551

 

14.5 

 

Subtotal

 

12,026,412

 

11,978,380

 

11,758,492

 

.4    

 

2.3    

 

12,002,529

 

11,736,636

 

2.3 

 

Certificates of deposit

 

2,742,832

 

2,543,345

 

2,360,881

 

7.8    

 

16.2    

 

2,643,639

 

2,342,178

 

12.9 

 

Total average deposits

 

$

14,769,244

 

$

14,521,725

 

$

14,119,373

 

1.7    

 

4.6    

 

$

14,646,168

 

$

14,078,814

 

4.0 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average interest rate on deposits (1)

 

.24%

 

.22%

 

.25%

 

 

 

 

 

.23%

 

.27%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·                  Total average deposits for the second quarter of 2014 increased $649.9 million, or 4.6 percent, from the second quarter of 2013 and increased $247.5 million, or 1.7 percent, from the first quarter of 2014. The increase from the second quarter of 2013 was primarily due to special campaigns for certificates of deposit and money market accounts, as well as higher average checking account balances per customer. The increase from the first quarter of 2014 was primarily due to special campaigns for certificates of deposit and money market accounts, partially offset by a reduction in savings.

 

·                  The average interest rate on deposits for the second quarter of 2014 was .24 percent, down one basis point from the second quarter of 2013 and up two basis points from the first quarter of 2014. The decrease from the second quarter of 2013 was primarily due to a reduction in average interest rates on various certificates of deposit, checking, and savings, partially offset by increased average interest rates on various money market accounts. The increase from the first quarter of 2014 was primarily due to increased average interest rates on various money market accounts and certificates of deposit.

 

-more-

 


 

9

 

Non-interest Expense

 

Non-interest Expense

    

                        

    

                        

    

                        

    

 

    

 

    

                        

    

                        

    

Table 6

    

 

 

 

 

 

 

 

 

Percent Change

 

 

 

 

 

 

 

(Dollars in thousands)

 

2Q

 

1Q

 

2Q

 

2Q14 vs   

 

2Q14 vs   

 

YTD

 

YTD

 

Percent

 

                                                                        

 

2014

 

2014

 

2013

 

1Q14   

 

2Q13   

 

2014

 

2013

 

Change

 

Compensation and
employee benefits

 

$

109,664

 

$

115,089

 

$

105,537

 

(4.7)%

 

3.9 %

 

$

224,753

 

$

209,766

 

7.1 

Occupancy and equipment

 

34,316

 

34,839

 

33,062

 

(1.5)   

 

3.8    

 

69,155

 

65,937

 

4.9 

 

FDIC insurance

 

7,625

 

7,563

 

8,362

 

.8    

 

(8.8)   

 

15,188

 

16,072

 

(5.5)

 

Operating lease depreciation

 

6,613

 

6,227

 

6,150

 

6.2    

 

7.5    

 

12,840

 

11,785

 

9.0 

 

Advertising and marketing

 

5,862

 

5,478

 

5,532

 

7.0    

 

6.0    

 

11,340

 

11,264

 

.7 

 

Deposit account premiums

 

383

 

418

 

600

 

(8.4)   

 

(36.2)   

 

801

 

1,202

 

(33.4)

 

Other

 

42,618

 

41,335

 

41,946

 

3.1    

 

1.6    

 

83,953

 

79,885

 

5.1 

 

Subtotal

 

207,081

 

210,949

 

201,189

 

(1.8)   

 

2.9    

 

418,030

 

395,911

 

5.6 

 

Foreclosed real estate and
repossessed assets, net

 

5,743

 

6,068

 

7,555

 

(5.4)   

 

(24.0)   

 

11,811

 

17,722

 

(33.4)

 

Other credit costs, net

 

371

 

119

 

(228)

 

N.M.   

 

N.M.   

 

490

 

(1,065)

 

N.M.

 

Total non-interest expense

 

$

213,195

 

$

217,136

 

$

208,516

 

(1.8)   

 

2.2    

 

$

430,331

 

$

412,568

 

4.3 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N.M. Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·                 Compensation and employee benefits expense increased $4.1 million, or 3.9 percent, from the second quarter of 2013 and decreased $5.4 million, or 4.7 percent, from the first quarter of 2014. The increase from the second quarter of 2013 was primarily due to increased staff levels to support the growth of auto finance and risk management. The decrease from the first quarter of 2014 was due to the seasonality of payroll taxes and the reduction in personnel expense related to the branch realignment completed during the first quarter of 2014.

 

·                  Foreclosed real estate and repossessed assets expense decreased $1.8 million, or 24 percent, from the second quarter of 2013 and decreased $325 thousand, or 5.4 percent compared to the first quarter of 2014. The decreases from both periods were driven by a reduction in write-downs of existing foreclosed properties as a result of improved property values, and improved exit values on commercial properties.

 

-more-

 


 

10

 

Capital

 

Capital Information

 

 

 

 

 

 

 

Table 7

 

At period end

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per-share data)

 

2Q

 

4Q

 

 

 

2014

 

2013

 

Total equity

 

$

2,071,711

 

 

 

$

1,964,759

 

 

 

Book value per common share

 

$

10.74

 

 

 

$

10.23

 

 

 

Tangible book value per common share (1)

 

$

9.35

 

 

 

$

8.83

 

 

 

Tangible common equity to tangible assets (1)

 

8.39

 %

 

 

8.03

 %

 

 

Capital accumulation rate (2)

 

12.17

 %

 

 

9.72

 %

 

 

 

 

 

 

 

 

 

 

 

 

Risk-based capital (3)

 

 

 

 

 

 

 

 

 

Tier 1

 

$

1,859,271

 

11.56

 %

$

1,763,682

 

11.41

 % 

Total

 

2,185,783

 

13.59

 

2,107,981

 

13.64

 

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage capital

 

$

1,859,271

 

9.91

 %

$

1,763,682

 

9.71

 %

 

 

 

 

 

 

 

 

 

 

Tier 1 common capital (4)

 

$

1,579,226

 

9.82

 %

$

1,488,651

 

9.63

 %

 

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

(2)   Calculated as the change in annualized year to date Tier 1 common capital as a percentage of prior period Tier 1 common capital.

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

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

 

·                  Capital ratios continue to improve as the Company accumulates capital through earnings. Total risk-based capital decreased slightly as the Company grows its risk-based assets.

 

·                  On July 21, 2014, TCF’s Board of Directors declared a regular quarterly cash dividend of 5 cents per common share, payable on September 2, 2014, to stockholders of record at the close of business on August 15, 2014. TCF also declared dividends on the 7.50% Series A and 6.45% Series B Non-Cumulative Perpetual Preferred Stock, both payable on September 2, 2014, to stockholders of record at the close of business on August 15, 2014.

 

-more-

 


 

11

 

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 25, 2014 at 8:00 a.m. CDT. 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. As of June 30, 2014, TCF had $18.8 billion in total assets and 380 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, equipment finance, and auto finance business in all 50 states and commercial inventory finance business in the U.S. and Canada. 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 herein. 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, 2013, 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 those arising from government shutdowns, 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; deviations from estimates of prepayment rates and fluctuations in interest rates that result in decreases in value of assets such as interest-only strips that arise in connection with TCF’s loan sales activity; 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 and their subsidiaries; the imposition of requirements that adversely impact TCF’s deposit, 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, regulation of campus banking programs between colleges or universities and financial institutions, use by municipalities of eminent domain on underwater mortgages, or imposition of underwriting or other limitations that impact the ability to use certain variable-rate products; changes affecting customer account charges and fee income, including changes to interchange rates; 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; regulatory criticism and resulting enforcement actions or other adverse consequences such as increased capital requirements, higher deposit insurance assessments or monetary damages or penalties; heightened regulatory practices, requirements or expectations, including, but not limited to, requirements related to the Bank Secrecy Act and anti-money laundering compliance activity.

 

-more-

 


 

13

 

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 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; regulatory actions or changes in customer opt-in preferences with respect to overdraft, 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.

 

Branching Risk; Growth Risks.  Adverse developments affecting TCF’s supermarket banking relationships or any of the supermarket chains in which TCF maintains supermarket branches; costs related to closing underperforming 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; the effect of interchange rate litigation against the Federal Reserve on debit card interchange fees; 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 federal, state or foreign 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 June 30,

 

Change

 

 

 

2014

 

2013

 

$

 

%

 

Interest income:

 

 

 

 

 

 

 

 

 

Loans and leases

 

$

206,788

 

$

206,675

 

$

113

 

.1 %

 

Securities available for sale

 

2,805

 

4,637

 

(1,832)

 

(39.5)   

 

Securities held to maturity

 

1,443

 

62

 

1,381

 

N.M.   

 

Investments and other

 

9,055

 

6,234

 

2,821

 

45.3    

 

Total interest income

 

220,091

 

217,608

 

2,483

 

1.1    

 

Interest expense:

 

 

 

 

 

 

 

 

 

Deposits

 

8,877

 

8,851

 

26

 

.3    

 

Borrowings

 

5,113

 

6,713

 

(1,600)

 

(23.8)   

 

Total interest expense

 

13,990

 

15,564

 

(1,574)

 

(10.1)   

 

Net interest income

 

206,101

 

202,044

 

4,057

 

2.0    

 

Provision for credit losses

 

9,909

 

32,591

 

(22,682)

 

(69.6)   

 

Net interest income after provision for credit losses

 

196,192

 

169,453

 

26,739

 

15.8    

 

Non-interest income:

 

 

 

 

 

 

 

 

 

Fees and service charges

 

38,035

 

41,572

 

(3,537)

 

(8.5)   

 

Card revenue

 

13,249

 

13,270

 

(21)

 

(.2)   

 

ATM revenue

 

5,794

 

5,828

 

(34)

 

(.6)   

 

Subtotal

 

57,078

 

60,670

 

(3,592)

 

(5.9)   

 

Leasing and equipment finance

 

23,069

 

22,609

 

460

 

2.0    

 

Gains on sales of auto loans, net

 

7,270

 

8,135

 

(865)

 

(10.6)   

 

Gains on sales of consumer real estate loans, net

 

8,151

 

4,069

 

4,082

 

100.3    

 

Servicing fee income

 

4,892

 

3,128

 

1,764

 

56.4    

 

Other

 

2,789

 

1,172

 

1,617

 

138.0    

 

Fees and other revenue

 

103,249

 

99,783

 

3,466

 

3.5    

 

Gains on securities, net

 

767

 

-

 

767

 

N.M.   

 

Total non-interest income

 

104,016

 

99,783

 

4,233

 

4.2    

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

109,664

 

105,537

 

4,127

 

3.9    

 

Occupancy and equipment

 

34,316

 

33,062

 

1,254

 

3.8    

 

FDIC insurance

 

7,625

 

8,362

 

(737)

 

(8.8)   

 

Operating lease depreciation

 

6,613

 

6,150

 

463

 

7.5    

 

Advertising and marketing

 

5,862

 

5,532

 

330

 

6.0    

 

Deposit account premiums

 

383

 

600

 

(217)

 

(36.2)   

 

Other

 

42,618

 

41,946

 

672

 

1.6    

 

Subtotal

 

207,081

 

201,189

 

5,892

 

2.9    

 

Foreclosed real estate and repossessed assets, net

 

5,743

 

7,555

 

(1,812)

 

(24.0)   

 

Other credit costs, net

 

371

 

(228)

 

599

 

N.M.   

 

Total non-interest expense

 

213,195

 

208,516

 

4,679

 

2.2    

 

Income before income tax expense

 

87,013

 

60,720

 

26,293

 

43.3    

 

Income tax expense

 

31,385

 

19,444

 

11,941

 

61.4    

 

Income after income tax expense

 

55,628

 

41,276

 

14,352

 

34.8    

 

Income attributable to non-controlling interest

 

2,503

 

2,372

 

131

 

5.5    

 

Net income attributable to TCF Financial Corporation

 

53,125

 

38,904

 

14,221

 

36.6    

 

Preferred stock dividends

 

4,847

 

4,847

 

-

 

-    

 

Net income available to common stockholders

 

$

48,278

 

$

34,057

 

$

14,221

 

41.8    

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

Basic

 

$

.30

 

$

.21

 

$

.09

 

42.9 %

 

Diluted

 

.29

 

.21

 

.08

 

38.1    

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

.05

 

$

.05

 

$

-

 

- %

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Basic

 

163,253

 

160,895

 

2,358

 

1.5 %

 

Diluted

 

163,714

 

161,749

 

1,965

 

1.2    

 

 

N.M.  Not meaningful.

 

-more-

 


 

15

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

 

 

 

Six Months Ended June 30,

 

Change

 

 

 

2014

 

2013

 

$

 

%

 

Interest income:

 

 

 

 

 

 

 

 

 

Loans and leases

 

$

409,325

 

$

411,580

 

$

(2,255)

 

(.5)%

 

Securities available for sale

 

5,968

 

9,432

 

(3,464)

 

(36.7)   

 

Securities held to maturity

 

2,407

 

126

 

2,281

 

N.M.   

 

Investments and other

 

17,018

 

12,020

 

4,998

 

41.6    

 

Total interest income

 

434,718

 

433,158

 

1,560

 

.4    

 

Interest expense:

 

 

 

 

 

 

 

 

 

Deposits

 

16,914

 

18,532

 

(1,618)

 

(8.7)   

 

Borrowings

 

10,429

 

13,491

 

(3,062)

 

(22.7)   

 

Total interest expense

 

27,343

 

32,023

 

(4,680)

 

(14.6)   

 

Net interest income

 

407,375

 

401,135

 

6,240

 

1.6    

 

Provision for credit losses

 

24,401

 

70,974

 

(46,573)

 

(65.6)   

 

Net interest income after provision for credit losses

 

382,974

 

330,161

 

52,813

 

16.0    

 

Non-interest income:

 

 

 

 

 

 

 

 

 

Fees and service charges

 

74,654

 

80,895

 

(6,241)

 

(7.7)   

 

Card revenue

 

25,499

 

25,687

 

(188)

 

(.7)   

 

ATM revenue

 

11,113

 

11,333

 

(220)

 

(1.9)   

 

Subtotal

 

111,266

 

117,915

 

(6,649)

 

(5.6)   

 

Leasing and equipment finance

 

45,049

 

38,813

 

6,236

 

16.1    

 

Gains on sales of auto loans, net

 

15,740

 

15,281

 

459

 

3.0    

 

Gains on sales of consumer real estate loans, net

 

19,857

 

12,195

 

7,662

 

62.8    

 

Servicing fee income

 

9,199

 

5,884

 

3,315

 

56.3    

 

Other

 

5,171

 

2,398

 

2,773

 

115.6    

 

Fees and other revenue

 

206,282

 

192,486

 

13,796

 

7.2    

 

Gains on securities, net

 

1,141

 

-

 

1,141

 

N.M.   

 

Total non-interest income

 

207,423

 

192,486

 

14,937

 

7.8    

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

224,753

 

209,766

 

14,987

 

7.1    

 

Occupancy and equipment

 

69,155

 

65,937

 

3,218

 

4.9    

 

FDIC insurance

 

15,188

 

16,072

 

(884)

 

(5.5)   

 

Operating lease depreciation

 

12,840

 

11,785

 

1,055

 

9.0    

 

Advertising and marketing

 

11,340

 

11,264

 

76

 

.7    

 

Deposit account premiums

 

801

 

1,202

 

(401)

 

(33.4)   

 

Other

 

83,953

 

79,885

 

4,068

 

5.1    

 

Subtotal

 

418,030

 

395,911

 

22,119

 

5.6    

 

Foreclosed real estate and repossessed assets, net

 

11,811

 

17,722

 

(5,911)

 

(33.4)   

 

Other credit costs, net

 

490

 

(1,065)

 

1,555

 

N.M.   

 

Total non-interest expense

 

430,331

 

412,568

 

17,763

 

4.3    

 

Income before income tax expense

 

160,066

 

110,079

 

49,987

 

45.4    

 

Income tax expense

 

57,964

 

37,003

 

20,961

 

56.6    

 

Income after income tax expense

 

102,102

 

73,076

 

29,026

 

39.7    

 

Income attributable to non-controlling interest

 

4,220

 

4,198

 

22

 

.5    

 

Net income attributable to TCF Financial Corporation

 

97,882

 

68,878

 

29,004

 

42.1    

 

Preferred stock dividends

 

9,694

 

9,371

 

323

 

3.4    

 

Net income available to common stockholders

 

$

88,188

 

$

59,507

 

$

28,681

 

48.2    

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

Basic

 

$

.54

 

$

.37

 

$

.17

 

45.9 %

 

Diluted

 

.54

 

.37

 

.17

 

45.9    

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

.10

 

$

.10

 

$

-

 

- %

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Basic

 

163,011

 

160,644

 

2,367

 

1.5 %

 

Diluted

 

163,491

 

161,443

 

2,048

 

1.3    

 

 

N.M.  Not meaningful.

 

-more-

 


 

16

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in thousands)

(Unaudited)

 

 

 

Three Months Ended June 30,

 

Change

 

 

 

2014

 

2013

 

$

 

%

 

Net income attributable to TCF Financial Corporation

 

$

53,125

 

$

38,904

 

$

14,221

 

36.6 %

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

Securities available for sale:

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) arising during the period

 

8,648

 

(34,420)

 

43,068

 

N.M.   

 

Reclassification of net gains to net income

 

(452)

 

-

 

(452)

 

N.M.   

 

Net investment hedges:

 

 

 

 

 

 

 

 

 

Unrealized (losses) gains arising during the period

 

(1,382)

 

874

 

(2,256)

 

N.M.   

 

Foreign currency translation adjustment:

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) arising during the period

 

1,399

 

(973)

 

2,372

 

N.M.   

 

Recognized postretirement prior service cost and transition obligation:

 

 

 

 

 

 

 

 

 

Net actuarial losses arising during the period

 

(11)

 

(12)

 

1

 

8.3    

 

Income tax (expense) benefit

 

(2,561)

 

12,662

 

(15,223)

 

N.M.   

 

Total other comprehensive income (loss)

 

5,641

 

(21,869)

 

27,510

 

N.M.   

 

Comprehensive income

 

$

58,766

 

$

17,035

 

$

41,731

 

N.M.   

 

 

 

 

Six Months Ended June 30,

 

Change

 

 

 

2014

 

2013

 

$

 

%

 

Net income attributable to TCF Financial Corporation

 

$

97,882

 

$

68,878

 

$

29,004

 

42.1 %

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

Securities available for sale:

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) arising during the period

 

20,514

 

(48,249)

 

68,763

 

N.M.   

 

Reclassification of net gains to net income

 

(629)

 

-

 

(629)

 

N.M.   

 

Net investment hedges:

 

 

 

 

 

 

 

 

 

Unrealized (losses) gains arising during the period

 

(172)

 

1,411

 

(1,583)

 

N.M.   

 

Foreign currency translation adjustment:

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) arising during the period

 

23

 

(1,595)

 

1,618

 

N.M.   

 

Recognized postretirement prior service cost and transition obligation:

 

 

 

 

 

 

 

 

 

Net actuarial losses arising during the period

 

(23)

 

(24)

 

1

 

4.2    

 

Income tax (expense) benefit

 

(7,415)

 

17,681

 

(25,096)

 

N.M.   

 

Total other comprehensive income (loss)

 

12,298

 

(30,776)

 

43,074

 

N.M.   

 

Comprehensive income

 

$

110,180

 

$

38,102

 

$

72,078

 

189.2    

 

 

N.M.  Not meaningful.

 

-more-

 


 

17

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in thousands, except per-share data)

(Unaudited)

 

 

 

At Jun. 30,

 

At Dec. 31,

 

Change

 

 

 

2014

 

2013

 

$

 

%

 

ASSETS

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

881,396

 

$

915,076

 

$

(33,680)

 

(3.7)%

 

Investments

 

85,449

 

94,326

 

(8,877)

 

(9.4)   

 

Securities held to maturity

 

220,801

 

19,912

 

200,889

 

N.M.   

 

Securities available for sale

 

413,316

 

551,064

 

(137,748)

 

(25.0)   

 

Loans and leases held for sale

 

314,277

 

79,768

 

234,509

 

N.M.   

 

Loans and leases:

 

 

 

 

 

 

 

 

 

Consumer real estate:

 

 

 

 

 

 

 

 

 

First mortgage lien

 

3,542,324

 

3,766,421

 

(224,097)

 

(5.9)   

 

Junior lien

 

2,480,763

 

2,572,905

 

(92,142)

 

(3.6)   

 

Total consumer real estate

 

6,023,087

 

6,339,326

 

(316,239)

 

(5.0)   

 

Commercial

 

3,093,161

 

3,148,352

 

(55,191)

 

(1.8)   

 

Leasing and equipment finance

 

3,526,264

 

3,428,755

 

97,509

 

2.8    

 

Inventory finance

 

1,880,667

 

1,664,377

 

216,290

 

13.0    

 

Auto finance

 

1,502,860

 

1,239,386

 

263,474

 

21.3    

 

Other loans and leases

 

24,486

 

26,743

 

(2,257)

 

(8.4)   

 

Total loans and leases

 

16,050,525

 

15,846,939

 

203,586

 

1.3    

 

Allowance for loan and lease losses

 

(236,081)

 

(252,230)

 

16,149

 

6.4    

 

Net loans and leases

 

15,814,444

 

15,594,709

 

219,735

 

1.4    

 

Premises and equipment, net

 

436,558

 

437,602

 

(1,044)

 

(.2)   

 

Goodwill

 

225,640

 

225,640

 

-

 

-    

 

Other assets

 

445,896

 

461,743

 

(15,847)

 

(3.4)   

 

Total assets

 

$

18,837,777

 

$

18,379,840

 

$

457,937

 

2.5    

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

Checking

 

$