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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):

April 21, 2015

 

 

TCF FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

 

Delaware

 

001-10253

 

41-1591444

(State or other jurisdiction of

incorporation)

 

(Commission File Number)

 

(IRS Employer Identification No.)

 

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

(Address of principal executive offices, including Zip Code)

 

(952) 745-2760

(Registrant’s telephone number, including area code)

 

 

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

 

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

 

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

 

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

 

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

 



 

Item 2.02 Results of Operations and Financial Condition.

 

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

 

TCF Financial Corporation (the “Company”) issued a press release dated April 21, 2015, attached to this Form 8-K as Exhibit 99.1, announcing its results of operations for the quarter ended March 31, 2015.

 

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

 

Item 7.01 Regulation FD Disclosure.

 

Information is being furnished herein in Exhibit 99.2 with respect to the slide presentation prepared for use with the press release. This information includes selected financial and operational information through the first quarter of 2015 and does not represent a complete set of financial statements and related notes prepared in conformity with generally accepted accounting principles (“GAAP”). Most, but not all, of the selected financial information furnished herein is derived from the Company’s consolidated financial statements and related notes prepared in accordance with GAAP and management’s discussion and analysis included in the Company’s reports on Forms 10-K and 10-Q. The Company’s annual financial statements are subject to independent audit. These materials are dated April 21, 2015 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 April 21, 2015

 

 

 

99.2

 

Slide presentation prepared for use with the Earnings Release, dated April 21, 2015

 



 

SIGNATURES

 

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

 

 

 

TCF FINANCIAL CORPORATION

 

 

 

 

 

/s/ William A. Cooper

 

William A. Cooper,
Chairman and Chief Executive Officer
(Principal Executive Officer)

 

 

 

 

 

/s/ Michael S. Jones

 

Michael S. Jones,
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)

 

 

 

 

 

 

 

/s/ Susan D. Bode

 

Susan D. Bode,
Senior Vice President and Chief Accounting Officer
(Principal Accounting Officer)

 

Dated:  April 21, 2015

 


(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 $39.8 Million, or 21 Cents Per Share

 

 

FIRST QUARTER HIGHLIGHTS

-  Reinvested a portion of troubled debt restructuring loan sale proceeds into core businesses

-  Loan and lease originations of $3.6 billion, up 14.9 percent from the first quarter of 2014

-       Average deposits of $15.7 billion, up 7.8 percent from the first quarter of 2014

-  Provision for credit losses of $12.8 million, down 11.7 percent from the first quarter of 2014

-  Revenue of $304.1 million, flat to the first quarter of 2014

-  Non-accrual loans and leases of $222.1 million, down 16.7 percent from the first quarter of 2014

-  Return on average assets of 0.85 percent, down 15 basis points from the first quarter of 2014

 

 

Summary of Financial Results

 

 

 

 

 

 

 

Table 1

 

 

 

 

 

 

 

 

Percent Change

(Dollars in thousands, except per-share data)

 

1Q

 

4Q

 

1Q

 

1Q15 vs

 

1Q15 vs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

 

2014

 

4Q14

 

1Q14

 

Net income attributable to TCF

 

$

39,801

 

$

23,988

 

$

44,757

 

65.9

%

(11.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

203,420

 

204,074

 

201,274

 

(0.3

)

1.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

 

0.21

 

0.12

 

0.24

 

75.0

 

(12.5

)

 

 

 

 

 

 

 

 

 

 

 

 

Financial Ratios(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

1.58

%

1.91

%

1.88

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

0.85

 

0.53

 

1.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average common equity

 

7.47

 

4.15

 

9.35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average tangible common equity(3)

 

8.58

 

4.80

 

10.89

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

4.50

 

4.49

 

4.66

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

0.28

 

0.40

 

0.43

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

 



 

WAYZATA, MN, April 21, 2015 - TCF Financial Corporation (“TCF” or the “Company”) (NYSE: TCB) today reported net income of $39.8 million for the first quarter of 2015, compared with net income of $44.8 million for the first quarter of 2014, and net income of $24.0 million for the fourth quarter of 2014. Diluted earnings per common share was 21 cents for the first quarter of 2015, compared with 24 cents for the first quarter of 2014, and 12 cents for the fourth quarter of 2014.

 

Chairman’s Statement

 

“Following the sale of consumer troubled debt restructuring loans in the fourth quarter of 2014, TCF experienced continued credit quality improvement in the first quarter of 2015 as net charge-offs and consumer real estate non-accruals declined,” said William A. Cooper, Chairman and Chief Executive Officer. “Loan and lease balances grew meaningfully as strong originations continued. As discussed in the fourth quarter, we began investing the proceeds from the sale of consumer troubled debt restructuring loans in our core businesses by holding more loans on the balance sheet during the quarter.

 

“Last month, TCF announced the promotion of Craig Dahl to President with expanded responsibilities. This further demonstrates our commitment to growing and developing strong executives who provide the continuity and background necessary to lead TCF into the future. I am very excited about this change as Craig has the experience and leadership skills necessary to excel in this new role and to help drive the next phase of TCF’s strategic plan.”

 

2



 

Revenue

 

Total Revenue

 

 

 

 

 

 

 

Table 2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent Change

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

1Q

 

4Q

 

1Q

 

1Q15 vs

 

1Q15 vs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

 

2014

 

4Q14

 

1Q14

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

203,420

 

$

204,074

 

$

201,274

 

(0.3

)%

1.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Fees and other revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees and service charges

 

33,972

 

39,477

 

36,619

 

(13.9

)

(7.2

)

 

 

 

 

 

 

 

 

 

 

 

 

Card revenue

 

12,901

 

12,830

 

12,250

 

0.6

 

5.3

 

 

 

 

 

 

 

 

 

 

 

 

 

ATM revenue

 

5,122

 

5,249

 

5,319

 

(2.4

)

(3.7

)

 

 

 

 

 

 

 

 

 

 

 

 

Total banking fees

 

51,995

 

57,556

 

54,188

 

(9.7

)

(4.0

)

 

 

 

 

 

 

 

 

 

 

 

 

Gains on sales of auto loans, net

 

6,265

 

12,962

 

8,470

 

(51.7

)

(26.0

)

 

 

 

 

 

 

 

 

 

 

 

 

Gains on sales of consumer real estate loans, net

 

8,763

 

6,175

 

11,706

 

41.9

 

(25.1

)

 

 

 

 

 

 

 

 

 

 

 

 

Servicing fee income

 

7,342

 

6,365

 

4,307

 

15.3

 

70.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal

 

22,370

 

25,502

 

24,483

 

(12.3

)

(8.6

)

 

 

 

 

 

 

 

 

 

 

 

 

Leasing and equipment finance

 

22,224

 

24,367

 

21,980

 

(8.8

)

1.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

4,127

 

2,363

 

2,382

 

74.7

 

73.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fees and other revenue

 

100,716

 

109,788

 

103,033

 

(8.3

)

(2.2

)

 

 

 

 

 

 

 

 

 

 

 

 

Gains (losses) on securities, net

 

(78

)

(20

)

374

 

N.M.

 

N.M.

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest income

 

100,638

 

109,768

 

103,407

 

(8.3

)

(2.7

)

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

$

304,058

 

$

313,842

 

$

304,681

 

(3.1

)

(0.2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin(1)

 

4.50

%

4.49

%

4.66

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest income as a percentage of total revenue

 

33.1

 

35.0

 

33.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N.M. Not Meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Annualized.

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

·                    Net interest income for the first quarter of 2015 increased $2.1 million, or 1.1 percent, compared with the first quarter of 2014. The increase was primarily driven by higher average loan and lease balances in the auto finance, leasing and equipment finance and inventory finance businesses. This increase was mostly offset by downward pressure on yields across the lending businesses in this increasingly competitive low interest rate environment, lower average balances of higher yielding fixed-rate loans in the consumer real estate and commercial portfolios due to run-off exceeding originations, and the troubled debt restructuring (“TDR”) loan sale in December 2014.

 

·                    Net interest income for the first quarter of 2015 decreased $0.7 million, or 0.3 percent, compared with the fourth quarter of 2014. The decrease was primarily due to lower average loan and lease balances in the consumer real estate portfolios after the TDR loan sale in the fourth quarter of 2014, the proceeds of which are expected to be reinvested in our core businesses over the next several quarters. The decrease was primarily offset by higher average loan balances in the inventory finance and auto finance portfolios.

 

3



 

·                   Net interest margin in the first quarter of 2015 was 4.50 percent, compared with 4.66 percent in the first quarter of 2014 and 4.49 percent in the fourth quarter of 2014. The decrease from the first quarter of 2014 was primarily due to margin compression resulting from the competitive low interest rate environment. The increase from the fourth quarter of 2014 was primarily due to higher consumer real estate and inventory finance yields in spite of the current interest rate environment.

 

Non-interest Income

 

·                    Fees and service charges in the first quarter of 2015 were $34.0 million, down $2.6 million, or 7.2 percent, from the first quarter of 2014 and down $5.5 million, or 13.9 percent, from the fourth quarter of 2014. The decreases from both periods were primarily due to customer behavior changes, as well as higher average checking account balances per customer.

 

·                    TCF sold $203.5 million, $261.7 million and $367.0 million of auto loans during the first quarters of 2015 and 2014, and the fourth quarter of 2014, respectively, resulting in net gains in each respective period.

 

·                    TCF sold $264.3 million, $347.4 million and $613.7 million of consumer real estate loans during the first quarters of 2015 and 2014, and the fourth quarter of 2014, respectively, resulting in net gains in each respective period. Included in consumer real estate loans sold (servicing released) for the fourth quarter of 2014 is $405.9 million related to the TDR loan sale, the proceeds of which are expected to be reinvested in our core businesses over the next several quarters.

 

·                    Servicing fee income was $7.3 million on $3.5 billion of period-end loans and leases serviced for others during the first quarter of 2015 compared with $4.3 million on $2.4 billion for the first quarter of 2014 and $6.4 million on $3.4 billion for the fourth quarter of 2014. The increases for both periods were primarily due to the cumulative effect of an increase in the portfolio of consumer real estate and auto loans sold with servicing retained by TCF.

 

4



 

Loans and Leases

 

Period-End and Average Loans and Leases

 

 

 

 

 

 

 

 

 

Table 3

 

 

 

 

 

 

 

 

Percent Change

(Dollars in thousands)

 

1Q

 

4Q

 

1Q

 

1Q15 vs

 

1Q15 vs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

 

2014

 

4Q14

 

1Q14

 

Period-End:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First mortgage lien

 

  $

3,011,166

 

  $

3,139,152

 

  $

3,668,245

 

(4.1

)%

(17.9

)%

 

 

 

 

 

 

 

 

 

 

 

 

Junior lien

 

2,597,895

 

2,543,212

 

2,407,286

 

2.2

 

7.9

 

 

 

 

 

 

 

 

 

 

 

 

 

Total consumer real estate

 

5,609,061

 

5,682,364

 

6,075,531

 

(1.3

)

(7.7

)

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

3,205,599

 

3,157,665

 

3,136,421

 

1.5

 

2.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Leasing and equipment finance

 

3,729,386

 

3,745,322

 

3,456,759

 

(0.4

)

7.9

 

 

 

 

 

 

 

 

 

 

 

 

 

Inventory finance

 

2,336,518

 

1,877,090

 

2,123,808

 

24.5

 

10.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto finance

 

2,156,139

 

1,915,061

 

1,400,527

 

12.6

 

54.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

20,448

 

24,144

 

22,550

 

(15.3

)

(9.3

)

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

  $

17,057,151

 

  $

16,401,646

 

  $

16,215,596

 

4.0

 

5.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First mortgage lien

 

  $

3,076,802

 

  $

3,447,447

 

  $

3,719,961

 

(10.8

)%

(17.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

Junior lien

 

2,614,538

 

2,611,709

 

2,607,851

 

0.1

 

0.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Total consumer real estate

 

5,691,340

 

6,059,156

 

6,327,812

 

(6.1

)

(10.1

)

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

3,154,008

 

3,143,614

 

3,122,066

 

0.3

 

1.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Leasing and equipment finance

 

3,729,481

 

3,611,557

 

3,434,691

 

3.3

 

8.6

 

 

 

 

 

 

 

 

 

 

 

 

 

Inventory finance

 

2,108,871

 

1,891,504

 

1,862,745

 

11.5

 

13.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto finance

 

2,021,144

 

1,817,024

 

1,327,232

 

11.2

 

52.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

11,616

 

11,396

 

13,273

 

1.9

 

(12.5

)

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

  $

16,716,460

 

  $

16,534,251

 

  $

16,087,819

 

1.1

 

3.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·                  Period-end loans and leases were $17.1 billion at March 31, 2015, an increase of $0.8 billion, or 5.2 percent, compared with March 31, 2014 and an increase of $0.7 billion, or 4.0 percent, compared with December 31, 2014. Average loans and leases were $16.7 billion for the first quarter of 2015, an increase of $0.6 billion, or 3.9 percent, compared with the first quarter of 2014 and an increase of $0.2 billion, or 1.1 percent, compared with the fourth quarter of 2014.

 

The increases in period-end loans and leases and average loans and leases from both periods were primarily due to the continued growth of the auto finance portfolio as TCF expands the number of active dealers, driving increased originations and higher period-end and average loan balances net of loan sales, as well as an increase in the inventory finance portfolio. These increases were partially offset by a decrease in consumer real estate loans as a result of the TDR loan sale. Growth in the leasing and equipment finance portfolio also contributed to the increase in the period-end loans and leases from first quarter of 2014 and average loans and leases from both periods.

 

·                    Loan and lease originations were $3.6 billion for the first quarter of 2015, an increase of $0.5 billion, or 14.9 percent, compared with the first quarter of 2014 and an increase of $0.1 billion, or 3.0 percent, compared with the fourth quarter of 2014. The increase from the first quarter of 2014 was primarily due to the continued growth in auto finance and an increase in consumer real estate and commercial originations. The increase from the fourth quarter of 2014 was primarily due to seasonality of inventory finance originations and the continued growth in auto finance, partially offset by a decrease in leasing and equipment finance originations.

 

5



 

Credit Quality

 

Credit Trends

 

 

 

 

 

 

Table 4

 

 

 

 

 

 

Percent Change

(Dollars in thousands)

1Q

4Q

3Q

2Q

1Q

1Q15 vs

1Q15 vs

 

2015

2014

2014

2014

2014

4Q14

1Q14

Over 60-day delinquencies as a
percentage of portfolio
(1)

0.14

%

0.14

%

0.17

%

0.18

%

0.19

%

bps

(5)

bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs as a percentage of
portfolio
(2)

0.28

 

0.40

 

0.66

 

0.45

 

0.43

 

(12)

 

(15)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans and leases and
other real estate owned

$284,541

 

$282,384

 

$342,725

 

$325,374

 

$330,127

 

0.8

%

(13.8)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

12,791

 

55,597

 

15,739

 

9,909

 

14,492

 

(77.0)

 

(11.7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

(2) Annualized.

 

 

·                   The over 60-day delinquency rate, excluding acquired portfolios and non-accrual loans and leases, was 0.14 percent at March 31, 2015, down from 0.19 percent at March 31, 2014, and unchanged from December 31, 2014. The decrease from March 31, 2014 was primarily a result of the stabilization of the consumer real estate portfolio as economic conditions improved in our markets.

 

·                   The net charge-off rate was 0.28 percent at March 31, 2015, down from 0.43 percent at March 31, 2014, and down from 0.40 percent at December 31, 2014. The decreases from both periods were primarily due to improved credit quality in the consumer real estate and commercial portfolios.

 

·                   Non-accrual loans and leases and other real estate owned totaled $284.5 million at March 31, 2015, a decrease of $45.6 million, or 13.8 percent, from March 31, 2014, and an increase of $2.2 million, or 0.8 percent, from December 31, 2014. The decrease from March 31, 2014 was primarily due to the TDR loan sale that occurred in the fourth quarter of 2014, which included $40.1 million of non-accrual loans, as well as improving credit quality trends and continued efforts to actively work out problem loans in the commercial portfolio.

 

·                   Provision for credit losses was $12.8 million for the first quarter of 2015, a decrease of $1.7 million, or 11.7 percent, from the first quarter of 2014, and a decrease of $42.8 million, or 77.0 percent, from the fourth quarter of 2014. The decrease from the first quarter of 2014 was primarily due to reduced reserve requirements and net charge-offs in the consumer real estate portfolio as a result of improved credit quality. The decrease from the fourth quarter of 2014 was primarily due to provision expense recorded in the fourth quarter of 2014 related to the TDR loan sale in that period.

 

6



 

Deposits

 

Average Deposits

 

 

 

 

 

 

 

 

 

Table 5

 

 

 

 

 

 

 

 

Percent Change

(Dollars in thousands)

 

1Q

 

4Q

 

1Q

 

1Q15 vs

1Q15 vs

 

 

2015

 

2014

 

2014

 

4Q14

1Q14

 

 

 

 

 

 

 

 

 

 

Checking

 

   $

5,300,699

 

  $

5,109,465

 

   $

5,016,118

 

3.7

%

5.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Savings

 

5,161,697

 

5,289,435

 

6,142,950

 

(2.4)

 

(16.0)

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market

 

2,149,340

 

1,869,350

 

819,312

 

15.0

 

162.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal

 

12,611,736

 

12,268,250

 

11,978,380

 

2.8

 

5.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

3,041,790

 

3,041,722

 

2,543,345

 

 

19.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total average deposits

 

   $

15,653,526

 

  $

15,309,972

 

   $

14,521,725

 

2.2

 

7.8

 

 

 

 

 

 

 

 

 

 

 

 

Average interest rate on deposits(1)

 

0.29

%

0.28

%

0.22

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Annualized.

 

 

 

 

 

 

 

 

 

 

 

 

·     Total average deposits for the first quarter of 2015 increased $1.1 billion, or 7.8 percent, from the first quarter of 2014 and increased $0.3 billion, or 2.2 percent, from the fourth quarter of 2014. The increases from both periods were primarily due to special campaigns for money market accounts and higher average checking account balances per customer. The increase from the first quarter of 2014 also resulted from special campaigns for certificates of deposit.

 

·     The average interest rate on deposits for the first quarter of 2015 was 0.29 percent, up 7 basis points from the first quarter of 2014 and up 1 basis point from the fourth quarter of 2014. The increases from both periods were primarily due to increased average rates on money market and certificates of deposit accounts as a result of deposit campaigns to fund loan and lease growth at market rates.

 

7



 

Non-interest Expense

 

Non-interest Expense

 

 

 

 

 

Table 6

 

 

 

 

 

 

 

 

Percent Change

 

(Dollars in thousands)

 

1Q

 

4Q

 

1Q

 

1Q15 vs

 

1Q15 vs

 

 

 

2015

 

2014

 

2014

 

4Q14

 

1Q14

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

$

115,815

 

$

115,796

 

$

115,089

 

%

0.6

%

Occupancy and equipment

 

36,827

 

35,747

 

34,839

 

3.0 

 

5.7

 

FDIC insurance

 

5,393

 

2,643

 

7,563

 

104.0 

 

(28.7

)

Operating lease depreciation

 

7,734

 

6,878

 

6,227

 

12.4 

 

24.2

 

Advertising and marketing

 

6,523

 

5,146

 

5,896

 

26.8 

 

10.6

 

Other

 

48,133

 

48,063

 

41,335

 

0.1 

 

16.4

 

Subtotal

 

220,425

 

214,273

 

210,949

 

2.9 

 

4.5

 

Foreclosed real estate and repossessed assets, net

 

6,196

 

7,441

 

6,068

 

(16.7)

 

2.1

 

Other credit costs, net

 

146

 

44

 

119

 

N.M. 

 

22.7

 

Total non-interest expense

 

$

226,767

 

$

221,758

 

$

217,136

 

2.3 

 

4.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N.M. Not Meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

 

·                FDIC insurance expense decreased $2.2 million, or 28.7 percent, from the first quarter of 2014 and increased $2.8 million, or 104.0 percent, from the fourth quarter of 2014. The decrease from the first quarter of 2014 was due to a lower assessment rate primarily as a result of the TDR loan sale in December 2014 and improved credit metrics. The increase from the fourth quarter of 2014 was due to a non-recurring assessment rate catch-up recognized in the fourth quarter of 2014.

 

·                   Foreclosed real estate and repossessed assets expense remained consistent with the first quarter of 2014 and decreased $1.2 million, or 16.7 percent, compared with the fourth quarter of 2014. The decrease from the fourth quarter of 2014 was primarily due to a reduction in write-downs of existing foreclosed commercial properties.

 

·                Included within other non-interest income during the first quarter of 2015 is a gain of $1.7 million related to appreciation of a private bank investment related to the bank’s merger with a publicly held financial institution. TCF subsequently donated the investment, with a carrying value of $2.8 million, to the TCF Foundation which is included within other non-interest expense.

 

8



 

Capital

 

Capital Information

 

 

 

Table 7

 

 

 

 

 

 

 

(Dollars in thousands, except per-share data)

 

1Q 2015

 

 

4Q 2014

 

Total equity

 

$

2,181,682

 

$

2,135,364

 

 

 

 

 

 

 

Book value per common share

 

11.28

 

11.10

 

 

 

 

 

 

 

Tangible book value per common share(1)

 

9.91

 

9.72

 

 

 

 

 

 

 

Tangible common equity to tangible assets(1)

 

8.44

%

8.50

%

 

 

 

 

 

 

Capital accumulation rate(2)

 

9.75

%

10.36

%

 

 

 

 

 

 

Regulatory Capital:

 

Under Basel III

 

 

Under Basel I

 

 

 

 

 

 

 

Common equity Tier 1 capital

 

$

1,682,967

 

N.A.

 

 

 

 

 

 

 

Tier 1 capital

 

1,966,089

 

$

1,919,887

 

 

 

 

 

 

 

Total capital

 

2,367,827

 

2,209,999

 

 

 

 

 

 

 

Regulatory Capital Ratios:

 

 

 

 

 

 

 

 

 

 

 

Common equity Tier 1 capital ratio

 

9.83

%

N.A.

 

 

 

 

 

 

 

Tier 1 risk-based capital ratio

 

11.49

 

11.76

%

 

 

 

 

 

 

Total risk-based capital ratio

 

13.83

 

13.54

 

 

 

 

 

 

 

Tier 1 leverage ratio

 

10.14

 

10.07

 

 

 

 

 

 

 

N.A. Not Applicable.

 

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

 

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

 

 

·     Maintained strong capital ratios as the Company accumulates capital through earnings. The decrease in the Tier 1 risk-based capital ratio from the fourth quarter of 2014 was primarily the result of strong asset growth.

 

·     Prior to 2015, the regulatory capital requirements effective for the Company followed the Basel I capital standard. In 2013, U.S. banking regulators approved final regulatory capital rule enhancements which became effective for the Company on January 1, 2015. The Basel III capital standard phases in through 2019 and revises the definition of capital, increases minimum capital ratios, introduces regulatory capital buffers above those minimums, introduces a common equity Tier 1 capital ratio and revises the rules for calculating risk-weighted assets. The adoption of the new capital standard had an immaterial impact to TCF’s capital levels and related ratios.

 

·     On April 20, 2015, TCF’s Board of Directors declared a regular quarterly cash dividend of 5 cents per common share, payable on June 1, 2015, to stockholders of record at the close of business on May 15, 2015. TCF also declared dividends on the 7.50% Series A and 6.45% Series B Non-Cumulative Perpetual Preferred Stock, both payable on June 1, 2015, to stockholders of record at the close of business on May 15, 2015.

 

9



 

Webcast Information

 

A live webcast of TCF’s conference call to discuss the first quarter earnings will be hosted at TCF’s website, http://ir.tcfbank.com, on April 21, 2015 at 9:00 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 March 31, 2015, TCF had $20.0 billion in total assets and 379 branches in Illinois, Minnesota, Michigan, Colorado, Wisconsin, Arizona, South Dakota and Indiana, 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 all 50 states and Canada. For more information about TCF, please visit http://ir.tcfbank.com.

 

 

10



 

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, 2014, 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 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, increased deposit costs due to competition for deposit growth and evolving payment system developments, 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, securities held to maturity 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 the 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.

 

11



 

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 such as mortgage foreclosure moratorium laws, further regulation of financial institution campus banking programs, use by municipalities of eminent domain on property securing troubled residential mortgage loans, or imposition of underwriting or other limitations that impact the ability to offer certain variable-rate products; changes affecting customer account charges and fee income, including changes to interchange rates; regulatory actions or changes in customer opt-in preferences with respect to overdrafts, which may have an adverse impact on TCF’s fee revenue; 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; 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 enterprise risk management, 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 impact on banks of regulatory reform, including additional capital, leverage, liquidity and risk management requirements or changes in the composition of qualifying regulatory capital; 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 or 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 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 new or expanded programs or 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, including the failure to develop and maintain technology necessary to satisfy customer demands.

 

Litigation Risks.  Results of litigation or government enforcement actions, including class action litigation or enforcement actions 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 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.

 

12



 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

 

 

 

 

Three Months Ended March 31,

 

 

Change

 

 

 

2015

 

2014

 

 

$

 

%

Interest income:

 

 

 

 

 

 

 

 

 

 

Loans and leases

 

 

 $

205,976

 

 $

202,537

 

 

 $

3,439

 

1.7 %

Securities available for sale

 

 

3,080

 

3,163

 

 

(83)

 

(2.6)

Securities held to maturity

 

 

1,405

 

964

 

 

441

 

45.7

Investments and other

 

 

9,333

 

7,963

 

 

1,370

 

17.2

Total interest income

 

 

219,794

 

214,627

 

 

5,167

 

2.4

Interest expense:

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

11,072

 

8,037

 

 

3,035

 

37.8

Borrowings

 

 

5,302

 

5,316

 

 

(14)

 

(0.3)

Total interest expense

 

 

16,374

 

13,353

 

 

3,021

 

22.6

Net interest income

 

 

203,420

 

201,274

 

 

2,146

 

1.1

Provision for credit losses

 

 

12,791

 

14,492

 

 

(1,701)

 

(11.7)

Net interest income after provision for credit losses

 

 

190,629

 

186,782

 

 

3,847

 

2.1

Non-interest income:

 

 

 

 

 

 

 

 

 

 

Fees and service charges

 

 

33,972

 

36,619

 

 

(2,647)

 

(7.2)

Card revenue

 

 

12,901

 

12,250

 

 

651

 

5.3

ATM revenue

 

 

5,122

 

5,319

 

 

(197)

 

(3.7)

Subtotal

 

 

51,995

 

54,188

 

 

(2,193)

 

(4.0)

Gains on sales of auto loans, net

 

 

6,265

 

8,470

 

 

(2,205)

 

(26.0)

Gains on sales of consumer real estate loans, net

 

 

8,763

 

11,706

 

 

(2,943)

 

(25.1)

Servicing fee income

 

 

7,342

 

4,307

 

 

3,035

 

70.5

Subtotal

 

 

22,370

 

24,483

 

 

(2,113)

 

(8.6)

Leasing and equipment finance

 

 

22,224

 

21,980

 

 

244

 

1.1

Other

 

 

4,127

 

2,382

 

 

1,745

 

73.3

Fees and other revenue

 

 

100,716

 

103,033

 

 

(2,317)

 

(2.2)

Gains (losses) on securities, net

 

 

(78)

 

374

 

 

(452)

 

N.M.

Total non-interest income

 

 

100,638

 

103,407

 

 

(2,769)

 

(2.7)

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

 

115,815

 

115,089

 

 

726

 

0.6

Occupancy and equipment

 

 

36,827

 

34,839

 

 

1,988

 

5.7

FDIC insurance

 

 

5,393

 

7,563

 

 

(2,170)

 

(28.7)

Operating lease depreciation

 

 

7,734

 

6,227

 

 

1,507

 

24.2

Advertising and marketing

 

 

6,523

 

5,896

 

 

627

 

10.6

Other

 

 

48,133

 

41,335

 

 

6,798

 

16.4

Subtotal

 

 

220,425

 

210,949

 

 

9,476

 

4.5

Foreclosed real estate and repossessed assets, net

 

 

6,196

 

6,068

 

 

128

 

2.1

Other credit costs, net

 

 

146

 

119

 

 

27

 

22.7

Total non-interest expense

 

 

226,767

 

217,136

 

 

9,631

 

4.4

Income before income tax expense

 

 

64,500

 

73,053

 

 

(8,553)

 

(11.7)

Income tax expense

 

 

22,828

 

26,579

 

 

(3,751)

 

(14.1)

Income after income tax expense

 

 

41,672

 

46,474

 

 

(4,802)

 

(10.3)

Income attributable to non-controlling interest

 

 

1,871

 

1,717

 

 

154

 

9.0

Net income attributable to TCF Financial Corporation

 

 

39,801

 

44,757

 

 

(4,956)

 

(11.1)

Preferred stock dividends

 

 

4,847

 

4,847

 

 

 

Net income available to common stockholders

 

 

 $

34,954

 

 $

39,910

 

 

 $

(4,956)

 

(12.4)

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 $

0.21

 

 $

0.25

 

 

 $

(0.04)

 

(16.0)%

Diluted

 

 

0.21

 

0.24

 

 

(0.03)

 

(12.5)

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

 

 $

 0.05

 

 $

0.05

 

 

 $

 

—%

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

Basic

 

 

164,845

 

162,767

 

 

2,078

 

1.3%

Diluted

 

 

165,366

 

163,267

 

 

2,099

 

1.3

 

 

 

 

 

 

 

 

 

 

 

N.M. Not Meaningful.

 

 

 

 

 

 

 

 

 

 

 

13



 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

(Dollars in thousands)

 

(Unaudited)

 

 

 

Three Months Ended March 31,

 

Change

 

 

2015

 

2014

 

$

 

%

Net income attributable to TCF Financial Corporation

 

 $

39,801

 

 $

44,757

 

 $

(4,956)

 

(11.1)%

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) arising during the period

 

4,139

 

11,866

 

(7,727)

 

(65.1)

 

 

 

 

 

 

 

 

 

Reclassification of net (gains) losses to net income

 

304

 

(177)

 

481

 

N.M.

 

 

 

 

 

 

 

 

 

Net investment hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) arising during the period

 

3,588

 

1,210

 

2,378

 

196.5

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) arising during the period

 

(3,886)

 

(1,376)

 

(2,510)

 

(182.4)

 

 

 

 

 

 

 

 

 

Recognized postretirement prior service cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassification of net (gains) losses to net income

 

(12)

 

(12)

 

 

 

 

 

 

 

 

 

 

 

Income tax (expense) benefit

 

(3,029)

 

(4,854)

 

1,825

 

37.6

 

 

 

 

 

 

 

 

 

Total other comprehensive income (loss)

 

1,104

 

6,657

 

(5,553)

 

(83.4)

 

 

 

 

 

 

 

 

 

Comprehensive income

 

 $

40,905

 

 $

51,414

 

 $

(10,509)

 

(20.4)

 

 

 

 

 

 

 

 

 

N.M. Not Meaningful.

 

 

 

 

 

 

 

 

 

14



 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in thousands, except per-share data)

(Unaudited)

 

 

 

At Mar. 31,

 

At Dec. 31,

 

Change

 

 

 

2015

 

2014

 

$

 

%

 

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 $

925,146

 

 $

1,115,250

 

 $

(190,104)

 

(17.0)%

 

 

 

 

 

 

 

 

 

 

 

Investments

 

79,495

 

85,492

 

(5,997)

 

(7.0)

 

 

 

 

 

 

 

 

 

 

 

Securities held to maturity

 

211,061

 

214,454

 

(3,393)

 

(1.6)

 

 

 

 

 

 

 

 

 

 

 

Securities available for sale

 

556,151

 

463,294

 

92,857

 

20.0

 

 

 

 

 

 

 

 

 

 

 

Loans and leases held for sale

 

223,787

 

132,266

 

91,521

 

69.2

 

 

 

 

 

 

 

 

 

 

 

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First mortgage lien

 

3,011,166

 

3,139,152

 

(127,986)

 

(4.1)

 

 

 

 

 

 

 

 

 

 

 

Junior lien

 

2,597,895

 

2,543,212

 

54,683

 

2.2

 

 

 

 

 

 

 

 

 

 

 

Total consumer real estate

 

5,609,061

 

5,682,364

 

(73,303)

 

(1.3)

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

3,205,599

 

3,157,665

 

47,934

 

1.5

 

 

 

 

 

 

 

 

 

 

 

Leasing and equipment finance

 

3,729,386

 

3,745,322

 

(15,936)

 

(0.4)

 

 

 

 

 

 

 

 

 

 

 

Inventory finance

 

2,336,518

 

1,877,090

 

459,428

 

24.5

 

 

 

 

 

 

 

 

 

 

 

Auto finance

 

2,156,139

 

1,915,061

 

241,078

 

12.6

 

 

 

 

 

 

 

 

 

 

 

Other

 

20,448

 

24,144

 

(3,696)

 

(15.3)

 

 

 

 

 

 

 

 

 

 

 

Total loans and leases

 

17,057,151

 

16,401,646

 

655,505

 

4.0

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan and lease losses

 

(163,799)

 

(164,169)

 

370

 

0.2

 

 

 

 

 

 

 

 

 

 

 

Net loans and leases

 

16,893,352

 

16,237,477

 

655,875

 

4.0

 

 

 

 

 

 

 

 

 

 

 

Premises and equipment, net

 

433,984

 

436,361

 

(2,377)

 

(0.5)

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

225,640

 

225,640

 

 

 

 

 

 

 

 

 

 

 

 

 

Other assets

 

435,957

 

484,377

 

(48,420)

 

(10.0)

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 $

19,984,573

 

 $

19,394,611

 

 $

589,962

 

3.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

 $

5,487,311

 

 $

5,195,243

 

 $

292,068

 

5.6

 

 

 

 

 

 

 

 

 

 

 

Savings

 

5,148,993

 

5,212,320

 

(63,327)

 

(1.2)

 

 

 

 

 

 

 

 

 

 

 

Money market

 

2,261,761

 

1,993,130

 

268,631

 

13.5

 

 

 

 

 

 

 

 

 

 

 

Subtotal

 

12,898,065

 

12,400,693

 

497,372

 

4.0

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

3,055,328

 

3,049,189

 

6,139

 

0.2

 

 

 

 

 

 

 

 

 

 

 

Total deposits

 

15,953,393

 

15,449,882

 

503,511

 

3.3

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

8,348

 

4,425

 

3,923

 

88.7

 

 

 

 

 

 

 

 

 

 

 

Long-term borrowings

 

1,236,636

 

1,232,065

 

4,571

 

0.4

 

 

 

 

 

 

 

 

 

 

 

Total borrowings

 

1,244,984

 

1,236,490

 

8,494

 

0.7

 

 

 

 

 

 

 

 

 

 

 

Accrued expenses and other liabilities