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Section 1: 8-K (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, 2016
 
 
 
TCF FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
 
Delaware
(State or other jurisdiction of
incorporation)
001-10253
(Commission File Number)
41-1591444
(IRS Employer Identification No.)
 
200 Lake Street East, Mail Code EX0-03-A, Wayzata, Minnesota 55391-1693
(Address of principal executive offices, including Zip Code)
 
(952) 745-2760
(Registrant’s telephone number, including area code)
 

 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
[ ]   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
[ ]   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
[ ]   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
[ ]   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))





Item 2.02 Results of Operations and Financial Condition.
 
The following information, including Exhibit 99.1, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall such information and Exhibit be deemed incorporated by reference in any filing under the Securities Act of 1933, except as may be expressly set forth by specific reference in such a filing.
 
TCF Financial Corporation (the "Company") issued a press release dated April 21, 2016, attached to this Form 8-K as Exhibit 99.1, announcing its results of operations for the quarter ended March 31, 2016.
 
The earnings release is also available on the Investor Relations section of the Company’s website 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 2016 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 of financial condition and results of operations 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, 2016 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 website 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, 2016

99.2            Slide presentation prepared for use with the Earnings Release, dated April 21, 2016






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/ Craig R. Dahl
 
Craig R. Dahl,
Vice Chairman of the Board, President and Chief Executive Officer (Principal Executive Officer)
 
 
 
 
 
/s/ Brian W. Maass
 
Brian W. Maass,
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, 2016



(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
Exhibit 99.1

NEWS RELEASE

TCF Financial Corporation • 200 Lake Street East • Wayzata MN 55391

FOR IMMEDIATE RELEASE
                                
Contact:
Mark Goldman        (952) 475-7050        news@tcfbank.com         (Media)
Jason Korstange        (952) 745-2755        investor@tcfbank.com        (Investors)

TCF REPORTS QUARTERLY NET INCOME OF $48.0 MILLION, OR 26 CENTS PER SHARE

FIRST QUARTER HIGHLIGHTS
- Revenue of $324.3 million, up 6.6 percent from the first quarter of 2015
- Non-interest expense of $228.3 million, up 0.7 percent from the first quarter of 2015
- Efficiency ratio of 70.4 percent, down 416 basis points from the first quarter of 2015
- Period-end loans and leases of $17.9 billion, up 4.7 percent from the first quarter of 2015
- Average deposits of $16.9 billion, up 7.9 percent from the first quarter of 2015
- Net charge-offs as a percentage of average loans and leases of 0.27 percent, down 1 basis point from the first quarter of 2015
- Non-accrual loans and leases of $198.6 million, down 10.6 percent from the first quarter of 2015

Summary of Financial Results
 
 
 
 
 
 
 
 
Table 1

 
 
 
 
 
 
 
Percent Change
(Dollars in thousands, except per-share data)
1Q
 
4Q
 
1Q
 
1Q16 vs
 
1Q16 vs
 
2016
 
2015
 
2015
 
4Q15
 
1Q15
Net income attributable to TCF
$
48,046

 
$
52,492

 
$
39,801

 
(8.5
)%
 
20.7
%
Net interest income
211,658

 
205,669

 
203,420

 
2.9

 
4.0

Diluted earnings per common share
0.26

 
0.29

 
0.21

 
(10.3
)
 
23.8

 
 
 
 
 
 
 
 
 
 
Financial Ratios(1)
 
 
 
 
 
 
 
 
 
Pre-tax pre-provision return on average assets(2)
1.83
%
 
1.95
%
 
1.58
%
 
 
 
 
Return on average assets
0.96

 
1.08

 
0.85

 
 
 
 
Return on average common equity
8.45

 
9.53

 
7.47

 
 
 
 
Return on average tangible common equity(3)
9.57

 
10.82

 
8.58

 
 
 
 
Net interest margin
4.37

 
4.35

 
4.50

 
 
 
 
Net charge-offs as a percentage of average loans and leases
0.27

 
0.29

 
0.28

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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, Minn. (April 21, 2016) - TCF Financial Corporation ("TCF" or the "Company") (NYSE: TCB) today reported net income of $48.0 million for the first quarter of 2016, compared with net income of $39.8 million for the first quarter of 2015, and net income of $52.5 million for the fourth quarter of 2015. Diluted earnings per common share was 26 cents for the first quarter of 2016, compared with 21 cents for the first quarter of 2015, and 29 cents for the fourth quarter of 2015.

"TCF reported strong first quarter results as we continued to emphasize our four strategic pillars of diversification, profitable growth, operating leverage and core funding, in all areas of the organization," said Craig R. Dahl, president and chief executive officer. "Our consistent and sustainable loan and lease origination capabilities, funded by a growing deposit base, continued to drive revenue growth and diversification. Meanwhile, credit quality showed additional improvement as net charge-offs, delinquencies as a percentage of portfolio and non-performing assets all decreased during the quarter. Finally, we took another step toward improving our operating efficiencies by announcing, as part of extending our retail banking relationship with Jewel-Osco, plans to close 33 in-store branches in Chicago, replacing them with full function, image-enabled ATMs.

"Based on these results, I am more encouraged than ever by the strategies and teams we have in place. We will continue to execute on our strategic pillars with the ultimate goal of accelerating value creation for our shareholders."


2




Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Revenue
 
 
 
 
 
 
 
 
Table 2

 
 
 
 
 
 
 
Percent Change
(Dollars in thousands)
1Q
 
4Q
 
1Q
 
1Q16 vs
 
1Q16 vs
 
2016
 
2015
 
2015
 
4Q15
 
1Q15
Net interest income
$
211,658

 
$
205,669

 
$
203,420

 
2.9
 %
 
4.0
 %
Non-interest income:
 
 
 
 
 
 
 
 
 
Fees and service charges
32,817

 
37,741

 
33,972

 
(13.0
)
 
(3.4
)
Card revenue
13,363

 
13,781

 
12,901

 
(3.0
)
 
3.6

ATM revenue
5,021

 
5,143

 
5,122

 
(2.4
)
 
(2.0
)
Subtotal
51,201

 
56,665

 
51,995

 
(9.6
)
 
(1.5
)
Gains on sales of auto loans, net
11,920

 
3,136

 
6,265

 
N.M.

 
90.3

Gains on sales of consumer real estate loans, net
9,384

 
13,104

 
8,763

 
(28.4
)
 
7.1

Servicing fee income
8,883

 
8,622

 
7,342

 
3.0

 
21.0

Subtotal
30,187

 
24,862

 
22,370

 
21.4

 
34.9

Leasing and equipment finance
28,487

 
32,355

 
22,224

 
(12.0
)
 
28.2

Other
2,843

 
1,806

 
4,127

 
57.4

 
(31.1
)
Fees and other revenue
112,718

 
115,688

 
100,716

 
(2.6
)
 
11.9

Gains (losses) on securities, net
(116
)
 
(29
)
 
(78
)
 
N.M.

 
(48.7
)
Total non-interest income
112,602

 
115,659

 
100,638

 
(2.6
)
 
11.9

Total revenue
$
324,260

 
$
321,328

 
$
304,058

 
0.9

 
6.6

 
 
 
 
 
 
 
 
 
 
Net interest margin(1)
4.37
%
 
4.35
%
 
4.50
%
 
 
 
 
Total non-interest income as a percentage of total revenue
34.7

 
36.0

 
33.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
N.M. Not Meaningful.
 
 
 
 
 
 
 
 
 
(1) Annualized.
 
 
 
 
 
 
 
 
 

Net Interest Income
Net interest income for the first quarter of 2016 increased $8.2 million, or 4.0 percent, compared with the first quarter of 2015. The increase was primarily due to higher average loan and lease balances in the auto finance, inventory finance and leasing and equipment finance portfolios, partially offset by the run-off of consumer real estate first mortgage lien balances, overall net margin compression and higher promotional rates paid on certificates of deposit.

Net interest income for the first quarter of 2016 increased $6.0 million, or 2.9 percent, compared with the fourth quarter of 2015. The increase was primarily due to higher than expected seasonality in average loan balances in the inventory finance portfolio and higher average loan balances in the auto finance portfolio due to maturation of the business model, partially offset by higher promotional rates paid on certificates of deposit.

Net interest margin for the first quarter of 2016 was 4.37 percent, compared with 4.50 percent for the first quarter of 2015 and 4.35 percent for the fourth quarter of 2015. The decrease compared with the first quarter of 2015 was primarily due to margin compression resulting from the impact of the competitive low interest rate environment and higher rates paid on certificates of deposit. The increase compared with the fourth quarter of 2015 was primarily due to higher average loan balances in the inventory finance portfolio, partially offset by higher rates paid on certificates of deposit.

3




Non-interest Income
Fees and service charges in the first quarter of 2016 were $32.8 million, down $1.2 million, or 3.4 percent, from the first quarter of 2015 and down $4.9 million, or 13.0 percent, from the fourth quarter of 2015. The decrease compared with the first quarter of 2015 was primarily due to ongoing consumer behavior changes, as well as higher average checking account balances per customer. The decrease compared with the fourth quarter of 2015 was primarily due to seasonality, as well as higher average checking account balances per customer.

TCF sold $444.3 million, $203.5 million and $271.1 million of auto loans during the first quarters of 2016 and 2015, and the fourth quarter of 2015, respectively, resulting in net gains in each respective period.

TCF sold $321.4 million, $264.3 million and $389.1 million of consumer real estate loans during the first quarters of 2016 and 2015, and the fourth quarter of 2015, respectively, resulting in net gains in each respective period. TCF has two consumer real estate loan sale programs; one that sells nationally originated junior lien loans and the other that originates first mortgage lien loans in our primary banking markets and sells the loans through a correspondent relationship.

Servicing fee income was $8.9 million on $4.4 billion of average loans and leases serviced for others during the first quarter of 2016, compared with $7.3 million on $3.5 billion for the first quarter of 2015 and $8.6 million on $4.2 billion for the fourth quarter of 2015. The increases from both periods were primarily due to the cumulative effect of the increase in the portfolio of auto and consumer real estate 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
 
1Q16 vs
 
1Q16 vs
 
2016
 
2015
 
2015
 
4Q15
 
1Q15
Period-End:
 
 
 
 
 
 
 
 
 
Consumer real estate:
 
 
 
 
 
 
 
 
 
First mortgage lien
$
2,521,492

 
$
2,624,956

 
$
3,011,166

 
(3.9
)%
 
(16.3
)%
Junior lien
2,729,075

 
2,839,316

 
2,597,895

 
(3.9
)
 
5.0

Total consumer real estate
5,250,567

 
5,464,272

 
5,609,061

 
(3.9
)
 
(6.4
)
Commercial
3,114,594

 
3,145,832

 
3,205,599

 
(1.0
)
 
(2.8
)
Leasing and equipment finance
4,005,934

 
4,012,248

 
3,729,386

 
(0.2
)
 
7.4

Inventory finance
2,676,675

 
2,146,754

 
2,336,518

 
24.7

 
14.6

Auto finance
2,786,731

 
2,647,596

 
2,156,139

 
5.3

 
29.2

Other
18,940

 
19,297

 
20,448

 
(1.9
)
 
(7.4
)
Total
$
17,853,441

 
$
17,435,999

 
$
17,057,151

 
2.4

 
4.7

 
 
 
 
 
 
 
 
 
 
Average:
 
 
 
 
 
 
 
 
 
Consumer real estate:
 
 
 
 
 
 
 
 
 
First mortgage lien
$
2,573,915

 
$
2,670,355

 
$
3,076,802

 
(3.6
)%
 
(16.3
)%
Junior lien
2,884,859

 
2,934,169

 
2,614,538

 
(1.7
)
 
10.3

Total consumer real estate
5,458,774

 
5,604,524

 
5,691,340

 
(2.6
)
 
(4.1
)
Commercial
3,158,101

 
3,117,983

 
3,154,008

 
1.3

 
0.1

Leasing and equipment finance
3,992,678

 
3,911,025

 
3,729,481

 
2.1

 
7.1

Inventory finance
2,433,534

 
2,180,534

 
2,108,871

 
11.6

 
15.4

Auto finance
2,703,880

 
2,514,923

 
2,021,144

 
7.5

 
33.8

Other
10,018

 
9,060

 
11,616

 
10.6

 
(13.8
)
Total
$
17,756,985

 
$
17,338,049

 
$
16,716,460

 
2.4

 
6.2

 
 
 
 
 
 
 
 
 
 

Period-end loans and leases were $17.9 billion at March 31, 2016, an increase of $0.8 billion, or 4.7 percent, compared with March 31, 2015 and an increase of $0.4 billion, or 2.4 percent, compared with December 31, 2015. Average loans and leases were $17.8 billion for the first quarter of 2016, an increase of $1.0 billion, or 6.2 percent, compared with the first quarter of 2015 and an increase of $0.4 billion, or 2.4 percent, compared with the fourth quarter of 2015.

The increases from the first quarter of 2015 were primarily due to the maturation of the business model in auto finance and increased seasonality in the early shipment of spring product and expansion of the number of active dealers in inventory finance, as well as an increase in the leasing and equipment finance portfolio due to strong fourth quarter originations, partially offset by run-off in the consumer real estate first mortgage lien portfolio. The increases from the fourth quarter of 2015 were primarily due to seasonally higher balances in the inventory finance portfolio and continued growth in the auto finance portfolio, partially offset by a decrease in the total consumer real estate portfolio.


5




Loan and lease originations were $4.0 billion for the first quarter of 2016, an increase of $0.5 billion, or 13.1 percent, compared with the first quarter of 2015 and an increase of $0.2 billion, or 4.8 percent, compared with the fourth quarter of 2015. The increase from the first quarter of 2015 was primarily due to strong growth in the lawn and garden segment of inventory finance and increases in auto finance and leasing and equipment finance originations, partially offset by decreases in commercial and consumer real estate originations. The increase from the fourth quarter of 2015 was primarily due to seasonally higher inventory finance originations and the continued growth in auto finance, partially offset by decreases in leasing and equipment finance, commercial and consumer real estate originations.

Credit Quality
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit Trends
 
 
 
 
 
 
 
Table 4

 
 
 
 
 
 
 
Change
(Dollars in thousands)
1Q
4Q
3Q
2Q
1Q
 
1Q16 vs
1Q16 vs
 
2016
2015
2015
2015
2015
 
4Q15
1Q15
Over 60-day delinquencies as a percentage of period-end loans and leases(1)
0.10
%
0.11
%
0.17
%
0.10
%
0.14
%
 
(1) bps

(4) bps

Net charge-offs as a percentage of average loans and leases(2)
0.27

0.29

0.23

0.41

0.28

 
(2
)
(1
)
Non-accrual loans and leases and other real estate owned
$
241,090

$
250,448

$
264,694

$
263,717

$
284,541

 
(3.7)%

(15.3)%

Provision for credit losses
18,842

17,607

10,018

12,528

12,791

 
7.0

47.3

 
(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 0.10 percent at March 31, 2016, down from 0.14 percent at March 31, 2015, and down from 0.11 percent at December 31, 2015. The decreases from both periods were primarily due to the stabilization of the consumer real estate portfolio as economic conditions improved in our markets.

The net charge-off rate was 0.27 percent for the first quarter of 2016, down from 0.28 percent for the first quarter of 2015, and down from 0.29 percent for the fourth quarter of 2015. The decrease from the first quarter of 2015 was primarily due to improved credit quality in the consumer real estate portfolio, partially offset by increased net charge-offs in the auto finance portfolio. The decrease from the fourth quarter of 2015 was due to net recoveries in the commercial portfolio and decreased net charge-offs in the leasing and equipment finance portfolio.

Non-accrual loans and leases and other real estate owned was $241.1 million at March 31, 2016, a decrease of $43.5 million, or 15.3 percent, from March 31, 2015, and a decrease of $9.4 million, or 3.7 percent, from December 31, 2015. The decreases from both periods were primarily due to increased sales of consumer real estate properties, improving credit quality trends and continued efforts to actively work out problem loans in the commercial portfolio.


6




Provision for credit losses was $18.8 million for the first quarter of 2016, an increase of $6.1 million, or 47.3 percent, from the first quarter of 2015, and an increase of $1.2 million, or 7.0 percent, from the fourth quarter of 2015. The increase from the first quarter of 2015 was primarily due to increased reserve requirements related to changes in economic outlook, growth in the auto finance, inventory finance, and leasing and equipment finance portfolios and increased net charge-offs in the auto finance portfolio due primarily to maturation of the portfolio. The increase from the fourth quarter of 2015 was primarily due to increased reserve requirements related to changes in economic outlook and growth in the inventory finance portfolio.

Deposits
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Deposits
 
 
 
 
 
 
 
 
Table 5

 
 
 
 
 
 
 
Percent Change
(Dollars in thousands)
1Q
 
4Q
 
1Q
 
1Q16 vs
 
1Q16 vs
 
2016
 
2015
 
2015
 
4Q15
 
1Q15
 
 
 
 
 
 
 
 
 
 
Checking
$
5,593,300

 
$
5,412,454

 
$
5,300,699

 
3.3
 %
 
5.5
 %
Savings
4,713,765

 
4,733,703

 
5,161,697

 
(0.4
)
 
(8.7
)
Money market
2,472,751

 
2,349,127

 
2,149,340

 
5.3

 
15.0

Certificates of deposit
4,104,951

 
3,793,653

 
3,041,790

 
8.2

 
35.0

Total average deposits
$
16,884,767

 
$
16,288,937

 
$
15,653,526

 
3.7

 
7.9

 
 
 
 
 
 
 
 
 
 
Average interest rate on deposits(1)
0.36
%
 
0.34
%
 
0.29
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Annualized.
 
 
 
 
 
 
 
 
 

Total average deposits for the first quarter of 2016 increased $1.2 billion, or 7.9 percent, from the first quarter of 2015 and increased $0.6 billion, or 3.7 percent, from the fourth quarter of 2015. The increases from both periods were primarily due to special campaigns for certificates of deposit and money market accounts.

The average interest rate on deposits for the first quarter of 2016 was 0.36 percent, up 7 basis points from the first quarter of 2015 and up 2 basis points from the fourth quarter of 2015. The increases from both periods were primarily due to increased average interest rates resulting from promotions for certificates of deposit.


7




Non-interest Expense
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest Expense
 
 
 
 
 
 
 
 
Table 6

 
 
 
 
 
 
 
 Change
(Dollars in thousands)
1Q
 
4Q
 
1Q
 
1Q16 vs
 
1Q16 vs
 
2016
 
2015
 
2015
 
4Q15
 
1Q15
 
 
 
 
 
 
 
 
 
 
Compensation and employee benefits
$
124,473

 
$
109,061

 
$
115,815

 
14.1
 %
 
7.5
 %
Occupancy and equipment
37,008

 
37,824

 
36,827

 
(2.2
)
 
0.5

FDIC insurance
4,113

 
5,173

 
5,393

 
(20.5
)
 
(23.7
)
Advertising and marketing
5,887

 
5,316

 
6,523

 
10.7

 
(9.8
)
Other
43,348

 
46,441

 
48,133

 
(6.7
)
 
(9.9
)
Subtotal
214,829

 
203,815

 
212,691

 
5.4

 
1.0

Operating lease depreciation
9,573

 
13,608

 
7,734

 
(29.7
)
 
23.8

Foreclosed real estate and repossessed assets, net
3,920

 
4,940

 
6,196

 
(20.6
)
 
(36.7
)
Other credit costs, net
12

 
224

 
146

 
(94.6
)
 
(91.8
)
Total non-interest expense
$
228,334

 
$
222,587

 
$
226,767

 
2.6

 
0.7

 
 
 
 
 
 
 
 
 
 
Efficiency ratio
70.42
%
 
69.27
%
 
74.58
%
 
115
 bps
 
(416) bps

 
 
 
 
 
 
 
 
 
 

Compensation and employee benefits expense increased $8.7 million, or 7.5 percent, from the first quarter of 2015 and increased $15.4 million, or 14.1 percent, from the fourth quarter of 2015. The increase from the first quarter of 2015 was primarily due to increased staff levels to support the continued growth of auto finance and higher incentives based on production results. The increase from the fourth quarter of 2015 was primarily due to seasonality of payroll taxes, higher incentives based on production results and non-recurring items in the fourth quarter of 2015, including the annual pension plan valuation adjustment resulting from an increase to the discount rate.

Operating lease depreciation is a transactional cost that is typically more than offset by increases in leasing and equipment finance non-interest income.


8




Capital
 
 
 
 
 
 
 
Capital Information
 
 
Table 7

 
 
 
 
(Dollars in thousands, except per-share data)
1Q 2016
 
4Q 2015
Total equity
$
2,368,841

 
$
2,306,917

Book value per common share
12.19

 
11.94

Tangible book value per common share(1)
10.85

 
10.59

Tangible common equity to tangible assets(1)
8.78
%
 
8.79
%
Capital accumulation rate(2)
8.73

 
10.44

 
 
 
 
Regulatory Capital:
1Q 2016(3)
 
4Q 2015
Common equity Tier 1 capital
$
1,854,048

 
$
1,814,442

Tier 1 capital
2,139,609

 
2,092,195

Total capital
2,527,888

 
2,487,060

 
 
 
 
Regulatory Capital Ratios:
 
 
 
Common equity Tier 1 capital ratio
9.98
%
 
10.00
%
Tier 1 risk-based capital ratio
11.51

 
11.54

Total risk-based capital ratio
13.60

 
13.71

Tier 1 leverage ratio
10.33

 
10.46

 
 
 
 
(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.
(3) The regulatory capital ratios for 1Q 2016 are preliminary pending completion and filing of the Company's regulatory reports.

TCF maintained strong capital ratios as the Company accumulates capital through earnings. The decreases in the regulatory capital ratios from the fourth quarter of 2015 were primarily the result of asset growth.

On April 20, 2016, TCF's Board of Directors declared a regular quarterly cash dividend of 7.5 cents per common share, payable on June 1, 2016, to stockholders of record at the close of business on May 13, 2016. 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, 2016, to stockholders of record at the close of business on May 13, 2016.


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, 2016 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 on 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, 2016, TCF had $21.3 billion in total assets and 376 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, 2015 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; 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; 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; inability to timely close underperforming branches due to long-term lease obligations; 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; ability to attract and retain employees given competitive conditions.
 
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 opening/origination, servicing practices, fees or charges, employment practices, or checking account overdraft program "opt in" requirements; and possible increases in indemnification obligations for certain litigation against Visa U.S.A.
 
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
 
2016
 
2015
 
$
 
%
Interest income:
 
 
 
 
 
 
 
Loans and leases
$
214,805

 
$
205,976

 
$
8,829

 
4.3
 %
Securities available for sale
5,498

 
3,080

 
2,418

 
78.5

Securities held to maturity
1,319

 
1,405

 
(86
)
 
(6.1
)
Investments and other
10,720

 
9,333

 
1,387

 
14.9

Total interest income
232,342

 
219,794

 
12,548

 
5.7

Interest expense:
 
 
 
 
 
 
 
Deposits
14,991

 
11,072

 
3,919

 
35.4

Borrowings
5,693

 
5,302

 
391

 
7.4

Total interest expense
20,684

 
16,374

 
4,310

 
26.3

Net interest income
211,658

 
203,420

 
8,238

 
4.0

Provision for credit losses
18,842

 
12,791

 
6,051

 
47.3

Net interest income after provision for credit losses
192,816

 
190,629

 
2,187

 
1.1

Non-interest income:
 
 
 
 
 
 
 
Fees and service charges
32,817

 
33,972

 
(1,155
)
 
(3.4
)
Card revenue
13,363

 
12,901

 
462

 
3.6

ATM revenue
5,021

 
5,122

 
(101
)
 
(2.0
)
Subtotal
51,201

 
51,995

 
(794
)
 
(1.5
)
Gains on sales of auto loans, net
11,920

 
6,265

 
5,655

 
90.3

Gains on sales of consumer real estate loans, net
9,384

 
8,763

 
621

 
7.1

Servicing fee income
8,883

 
7,342

 
1,541

 
21.0

Subtotal
30,187

 
22,370

 
7,817

 
34.9

Leasing and equipment finance
28,487

 
22,224

 
6,263

 
28.2

Other
2,843

 
4,127

 
(1,284
)
 
(31.1
)
Fees and other revenue
112,718

 
100,716

 
12,002

 
11.9

Gains (losses) on securities, net
(116
)
 
(78
)
 
(38
)
 
(48.7
)
Total non-interest income
112,602

 
100,638

 
11,964

 
11.9

Non-interest expense:
 
 
 
 
 
 
 
Compensation and employee benefits
124,473

 
115,815

 
8,658

 
7.5

Occupancy and equipment
37,008

 
36,827

 
181

 
0.5

FDIC insurance
4,113

 
5,393

 
(1,280
)
 
(23.7
)
Advertising and marketing
5,887

 
6,523

 
(636
)
 
(9.8
)
Other
43,348

 
48,133

 
(4,785
)
 
(9.9
)
Subtotal
214,829

 
212,691

 
2,138

 
1.0

Operating lease depreciation
9,573

 
7,734

 
1,839

 
23.8

Foreclosed real estate and repossessed assets, net
3,920

 
6,196

 
(2,276
)
 
(36.7
)
Other credit costs, net
12

 
146

 
(134
)
 
(91.8
)
Total non-interest expense
228,334

 
226,767

 
1,567

 
0.7

Income before income tax expense
77,084

 
64,500

 
12,584

 
19.5

Income tax expense
26,803

 
22,828

 
3,975

 
17.4

Income after income tax expense
50,281

 
41,672

 
8,609

 
20.7

Income attributable to non-controlling interest
2,235

 
1,871

 
364

 
19.5

Net income attributable to TCF Financial Corporation
48,046

 
39,801

 
8,245

 
20.7

Preferred stock dividends
4,847

 
4,847

 

 

Net income available to common stockholders
$
43,199

 
$
34,954

 
$
8,245

 
23.6

 
 
 
 
 
 
 
 
Net income per common share:
 
 
 
 
 
 
 
Basic
$
0.26

 
$
0.21

 
$
0.05

 
23.8
 %
Diluted
0.26

 
0.21

 
0.05

 
23.8

 
 
 
 
 
 
 
 
Dividends declared per common share
$
0.075

 
$
0.05

 
$
0.025

 
50.0
 %
 
 
 
 
 
 
 
 
Average common and common equivalent shares
 
 
 
 
 
 
 
outstanding (in thousands):
 
 
 
 
 
 
 
Basic
166,887

 
164,845

 
2,042

 
1.2
 %
Diluted
167,435

 
165,366

 
2,069

 
1.3

 
 
 
 
 
 
 
 



13




TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in thousands)
(Unaudited)
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
Change
 
2016
 
2015
 
$
 
%
Net income attributable to TCF Financial Corporation
$
48,046

 
$
39,801

 
$
8,245

 
20.7
 %
Other comprehensive income (loss):
 
 
 
 
 
 
 
Securities available for sale:
 
 
 
 
 
 
 
Unrealized gains (losses) arising during the period
19,135

 
4,139

 
14,996

 
N.M.

Reclassification of net (gains) losses to net income
274

 
304

 
(30
)
 
(9.9
)
Net investment hedges:
 
 
 
 
 
 
 
Unrealized gains (losses) arising during the period
(3,257
)
 
3,588

 
(6,845
)
 
N.M.

Foreign currency translation adjustment:
 
 
 
 
 
 
 
Unrealized gains (losses) arising during the period
3,409

 
(3,886
)
 
7,295

 
N.M.

Recognized postretirement prior service cost:
 
 
 
 
 
 
 
Reclassification of net (gains) losses to net income
(12
)
 
(12
)
 

 

Income tax (expense) benefit
(6,130
)
 
(3,029
)
 
(3,101
)
 
(102.4
)
Total other comprehensive income (loss)
13,419

 
1,104

 
12,315

 
N.M.

Comprehensive income
$
61,465

 
$
40,905

 
$
20,560

 
50.3

 
 
 
 
 
 
 
 
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
 
2016
 
2015
 
$
 
%
ASSETS:
 
 
 
 
 
 
 
Cash and due from banks
$
870,153

 
$
889,337

 
$
(19,184
)
 
(2.2
)%
Investments
71,586

 
70,537

 
1,049

 
1.5

Securities held to maturity
198,178

 
201,920

 
(3,742
)
 
(1.9
)
Securities available for sale
1,135,890

 
888,885

 
247,005

 
27.8

Loans and leases held for sale
211,151

 
157,625

 
53,526

 
34.0

Loans and leases:
 
 
 
 
 
 
 
Consumer real estate:
 
 
 
 
 
 
 
First mortgage lien
2,521,492

 
2,624,956

 
(103,464
)
 
(3.9
)
Junior lien
2,729,075

 
2,839,316

 
(110,241
)
 
(3.9
)
Total consumer real estate
5,250,567

 
5,464,272

 
(213,705
)
 
(3.9
)
Commercial
3,114,594

 
3,145,832

 
(31,238
)
 
(1.0
)
Leasing and equipment finance
4,005,934

 
4,012,248

 
(6,314
)
 
(0.2
)
Inventory finance
2,676,675

 
2,146,754

 
529,921

 
24.7

Auto finance
2,786,731

 
2,647,596

 
139,135

 
5.3

Other
18,940

 
19,297

 
(357
)
 
(1.9
)
Total loans and leases
17,853,441

 
17,435,999

 
417,442

 
2.4

Allowance for loan and lease losses
(160,074
)
 
(156,054
)
 
(4,020
)
 
(2.6
)
Net loans and leases
17,693,367

 
17,279,945

 
413,422

 
2.4

Premises and equipment, net
439,507

 
445,934

 
(6,427
)
 
(1.4
)
Goodwill
225,640

 
225,640

 

 

Other assets
475,630

 
529,786

 
(54,156
)
 
(10.2
)
Total assets
$
21,321,102

 
$
20,689,609

 
$
631,493

 
3.1

 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY:
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
Checking
$
5,764,392

 
$
5,690,559

 
$
73,833

 
1.3
 %
Savings
4,741,850

 
4,717,457

 
24,393

 
0.5

Money market
2,539,124

 
2,408,180

 
130,944

 
5.4

Certificates of deposit
4,267,003

 
3,903,793

 
363,210

 
9.3

Total deposits
17,312,369

 
16,719,989

 
592,380

 
3.5

Short-term borrowings
2,426

 
5,381

 
(2,955
)
 
(54.9
)
Long-term borrowings
1,003,168

 
1,034,557

 
(31,389
)
 
(3.0
)
Total borrowings
1,005,594

 
1,039,938

 
(34,344
)
 
(3.3
)
Accrued expenses and other liabilities
634,298

 
622,765

 
11,533

 
1.9

Total liabilities
18,952,261

 
18,382,692

 
569,569

 
3.1

Equity:
 
 
 
 
 
 
 
Preferred stock, par value $0.01 per share, 30,000,000 shares authorized;
 
 
 
 
 
 
 
4,006,900 shares issued
263,240

 
263,240

 

 

Common stock, par value $0.01 per share, 280,000,000 shares authorized;
 
 
 
 
 
 
 
170,647,255 and 169,887,030 shares issued, respectively
1,707

 
1,699

 
8

 
0.5

Additional paid-in capital
860,307

 
851,836

 
8,471

 
1.0

Retained earnings, subject to certain restrictions
1,271,031

 
1,240,347

 
30,684

 
2.5

Accumulated other comprehensive income (loss)
(1,927
)
 
(15,346
)
 
13,419

 
87.4

Treasury stock at cost, 42,566 shares, and other
(51,445
)
 
(50,860
)
 
(585
)
 
(1.2
)
Total TCF Financial Corporation stockholders' equity
2,342,913

 
2,290,916

 
51,997

 
2.3

Non-controlling interest in subsidiaries
25,928

 
16,001

 
9,927

 
62.0

Total equity
2,368,841

 
2,306,917

 
61,924

 
2.7

Total liabilities and equity
$
21,321,102

 
$
20,689,609

 
$
631,493

 
3.1

 
 
 
 
 
 
 
 

15




TCF FINANCIAL CORPORATION AND SUBSIDIARIES
SUMMARY OF CREDIT QUALITY DATA
(Dollars in thousands)
(Unaudited)
 
Over 60-Day Delinquencies as a Percentage of Portfolio(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At
 
At
 
At
 
At
 
At
 
Change from
 
 
Mar. 31,
 
Dec. 31,
 
Sep. 30,
 
Jun. 30,
 
Mar. 31,
 
Dec. 31,
 
Mar. 31,
 
 
2016
 
2015
 
2015
 
2015
 
2015
 
2015
 
2015
 
Consumer real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First mortgage lien
0.38
%
 
0.46
%
 
0.36
%
 
0.38
%
 
0.53
%
 
(8
)
bps
(15
)
bps
Junior lien
0.05

 
0.05

 
0.08

 
0.08

 
0.11

 

 
(6
)
 
Total consumer real estate
0.20

 
0.23

 
0.21

 
0.22

 
0.32

 
(3
)
 
(12
)
 
Commercial

 

 
0.25

 

 

 

 

 
Leasing and equipment finance
0.12

 
0.06

 
0.19

 
0.06

 
0.09

 
6

 
3

 
Inventory finance

 
0.01

 
0.01

 

 

 
(1
)
 

 
Auto finance
0.09

 
0.14

 
0.11

 
0.11

 
0.16

 
(5
)
 
(7
)
 
Other
0.16

 
0.13

 
0.17

 
0.11

 
0.02

 
3

 
14

 
Subtotal
0.10

 
0.11

 
0.17

 
0.10

 
0.14

 
(1
)
 
(4
)
 
Acquired portfolios
0.41

 
0.41

 
0.37

 
0.28

 
0.21

 

 
20

 
Total delinquencies
0.10

 
0.11

 
0.17

 
0.10

 
0.14

 
(1
)
 
(4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Excludes non-accrual loans and leases.
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Net Charge-Offs as a Percentage of Average Loans and Leases
 
 
 
 
 
 
Quarter Ended(1)
 
Change from
 
 
Mar. 31,
 
Dec. 31,
 
Sep. 30,
 
Jun. 30,
 
Mar. 31,
 
Dec. 31,
 
Mar. 31,
 
 
2016
 
2015
 
2015
 
2015
 
2015
 
2015
 
2015
 
Consumer real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First mortgage lien
0.55
 %
 
0.54
%
 
0.53
%
 
0.79
%
 
0.62
 %
 
1

bps
(7
)
bps
Junior lien
0.17

 
0.17

 
0.11

 
0.59

 
0.38

 

 
(21
)
 
Total consumer real estate
0.35

 
0.34

 
0.32

 
0.69

 
0.51

 
1

 
(16
)
 
Commercial
(0.02
)
 
0.05

 

 
0.21

 
(0.07
)
 
(7
)
 
5

 
Leasing and equipment finance
0.13

 
0.16

 
0.09

 
0.16

 
0.10

 
(3
)
 
3

 
Inventory finance
0.04

 
0.05

 
0.03

 
0.11

 
0.08

 
(1
)
 
(4
)
 
Auto finance
0.81

 
0.75

 
0.62

 
0.66

 
0.66

 
6

 
15

 
Other
 N.M.

 
 N.M.

 
 N.M.

 
 N.M.

 
 N.M.

 
N.M.

 
N.M.

 
Total
0.27

 
0.29

 
0.23

 
0.41

 
0.28

 
(2
)
 
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
N.M. Not Meaningful.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Annualized.
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Non-Accrual Loans and Leases Rollforward
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
Change from
 
 
Mar. 31,
 
Dec. 31,
 
Sep. 30,
 
Jun. 30,
 
Mar. 31,
 
Dec. 31,
 
Mar. 31,
 
 
2016
 
2015
 
2015
 
2015
 
2015
 
2015
 
2015
 
Balance, beginning of period
$
200,466

 
$
206,110

 
$
205,710

 
$
222,143

 
$
216,734

 
$
(5,644
)
 
$
(16,268
)
 
Additions
38,029

 
44,387

 
48,505

 
40,846

 
51,647

 
(6,358
)
 
(13,618
)
 
Charge-offs
(7,436
)
 
(9,002
)
 
(7,055
)
 
(14,050
)
 
(8,921
)
 
1,566

 
1,485

 
Transfers to other assets
(12,342
)
 
(13,612
)
 
(16,400
)
 
(17,738
)
 
(16,781
)
 
1,270

 
4,439

 
Return to accrual status
(7,698
)
 
(9,282
)
 
(10,190
)
 
(10,298
)
 
(7,668
)
 
1,584

 
(30
)
 
Payments received
(15,551
)
 
(20,103
)
 
(14,721
)
 
(15,543
)
 
(10,974
)
 
4,552

 
(4,577
)
 
Sales

 
(775
)
 
(705
)
 
(353
)
 
(2,250
)
 
775

 
2,250

 
Other, net
3,181

 
2,743

 
966

 
703

 
356

 
438

 
2,825

 
Balance, end of period
$
198,649

 
$
200,466

 
$
206,110

 
$
205,710

 
$
222,143

 
$
(1,817
)
 
$
(23,494
)
 


16




TCF FINANCIAL CORPORATION AND SUBSIDIARIES
SUMMARY OF CREDIT QUALITY DATA, CONTINUED
(Dollars in thousands)
(Unaudited)
 
Other Real Estate Owned Rollforward
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
Change from
 
Mar. 31,
 
Dec. 31,
 
Sep. 30,
 
Jun. 30,
 
Mar. 31,
 
Dec. 31,
 
Mar. 31,
 
2016
 
2015
 
2015
 
2015
 
2015
 
2015
 
2015
Balance, beginning of period
$
49,982

 
$
58,584

 
$
58,007

 
$
62,398

 
$
65,650

 
$
(8,602
)
 
$
(15,668
)
Transferred in