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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 22, 2010

 


 

 

TCF FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

 


 

Delaware

 

001-10253

 

41-1591444

(State or other jurisdiction of

 

(Commission File Number)

 

(IRS Employer Identification No.)

incorporation or organization)

 

 

 

 

 

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

(Address of principal executive offices)

 

(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:

 

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

 

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

 

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

 

o   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.

 

In accordance with General Instruction B.2 of Form 8-K, 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.

 

The registrant issued a press release dated April 22, 2010, attached to this Form 8-K as Exhibit 99.1, announcing its results of operations for the quarter ended March 31, 2010.

 

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

 

Item 9.01   Financial Statements and Exhibits.

 

(d)         Exhibits.

 

Exhibit No.

Description

 

 

99.1

Earnings Release of TCF Financial Corporation,
dated April 22, 2010

 

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/ Thomas F. Jasper

 

 

Thomas F. Jasper, Executive Vice President and
Chief Financial Officer
(Principal Financial Officer)

 

 

 

 

 

 

 

 

/s/ David M. Stautz

 

 

David M. Stautz, Senior Vice President,
Controller and Assistant Treasurer
(Principal Accounting Officer)

 

Dated:    April 22, 2010

 

2

 

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

 

Exhibit 99.1

 

NEWS RELEASE

 

 

CONTACT:

Jason Korstange

 

 

(952) 745-2755

 

 

 

 

 

www.tcfbank.com

 

 

 

 

FOR IMMEDIATE RELEASE

 

 

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

 

TCF Reports 60th Consecutive Quarter of Net Income – Earns $.26 Per Share, Up 52.9 Percent

 

FIRST QUARTER HIGHLIGHTS

·                 Diluted earnings per common share of 26 cents, up 52.9 percent

·                 Net income of $33.9 million, up 27.3 percent

·                 Total revenue increased by $37.6 million, or 14.5 percent

·                 Net interest margin of 4.20 percent, up from 3.66 percent

·                 Average deposits increased by $689.1 million, or 6.3 percent

·                 Issued $172.5 million of common stock through a public offering

·                 Tangible realized common equity of 6.87 percent

·                 Announced quarterly cash dividend of five cents per common share, payable May 28, 2010

 

Earnings Summary

 

 

 

 

 

 

 

 

 

Table 1

 

($ in thousands, except per-share data)

 

 

 

 

 

 

 

 

Percent Change

 

 

 

1Q
2010

 

4Q
2009

 

1Q
2009

 

1Q10 vs
4Q09

 

1Q10 vs
1Q09

 

Net income

 

$33,921

 

$19,456

 

$26,647

 

74.3

%

27.3

%

Diluted earnings per common share

 

.26

 

.15

 

.17

 

73.3

 

52.9

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Ratios (1)

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

.76

%

.43

%

.62

%

 

 

 

 

Return on average common equity

 

10.68

 

6.57

 

7.58

 

 

 

 

 

Net interest margin

 

4.20

 

4.07

 

3.66

 

 

 

 

 

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

 

1.22

 

1.35

 

1.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-more-

 


 

2

 

WAYZATA, MN, April 22, 2010 – TCF Financial Corporation (“TCF”) (NYSE: TCB) today reported diluted earnings per common share of 26 cents for the first quarter of 2010, compared with 17 cents in the first quarter of 2009 and 15 cents in the fourth quarter of 2009.  Net income for the first quarter of 2010 was $33.9 million, compared with $26.6 million in the first quarter of 2009 and $19.5 million in the fourth quarter of 2009.

 

TCF declared a quarterly cash dividend of five cents per common share payable on May 28, 2010 to stockholders of record at the close of business on April 30, 2010.

 

Chairman’s Statement

 

“TCF is reporting its 60th consecutive profitable quarter and has announced its 88th consecutive quarterly dividend payment,” said William A. Cooper, TCF Chairman and CEO. “Strong net interest margin performance, a reduction in net charge-offs for the second consecutive quarter and good expense control resulted in improved quarter-to-quarter results.  Unemployment continues to challenge consumer credit across the country, including TCF’s primary markets.   But we are starting to see consumer spending activity improve in the markets we serve as evidenced by our increase in card revenue.  With head winds easing, it’s clear that based on TCF’s high-quality capital, strong balance sheet, conservative banking philosophy and core profitability, we are well-positioned for future success.”

 

-more-

 


 

3

 

Total Revenue

 

 

 

 

 

 

 

 

 

Table 2

 

 

 

 

 

 

 

 

 

Percent Change

 

($ in thousands)

 

1Q
2010

 

4Q
2009

 

1Q
2009

 

1Q10 vs
4Q09

 

1Q10 vs
1Q09

 

Net interest income

 

$174,662

 

$169,641

 

$145,413

 

   3.0%

 

  20.1%

 

Fees and other revenue:

 

 

 

 

 

 

 

 

 

 

 

Fees and service charges

 

66,172

 

74,875

 

57,064

 

(11.6)  

 

16.0  

 

Card revenue

 

27,072

 

26,813

 

24,960

 

1.0

 

8.5

 

ATM revenue

 

7,022

 

7,006

 

7,598

 

  .2

 

(7.6)

 

Total banking fees

 

100,266

 

108,694

 

89,622

 

(7.8)

 

11.9  

 

Leasing and equipment finance

 

20,352

 

24,408

 

12,651

 

(16.6)  

 

60.9  

 

Other

 

2,455

 

2,764

 

458

 

(11.2)  

 

N.M. 

 

Total fees and other revenue

 

123,073

 

135,866

 

102,731

 

(9.4)

 

19.8  

 

Gains (losses) on securities, net

 

(430)

 

7,283

 

11,548

 

N.M. 

 

N.M. 

 

Total non-interest income

 

122,643

 

143,149

 

114,279

 

(14.3)  

 

7.3

 

Total revenue

 

$297,305

 

$312,790

 

$259,692

 

(5.0)

 

14.5  

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin(1)

 

4.20%

 

4.07%

 

3.66%

 

 

 

 

 

Fees and other revenue as a % of total revenue

 

41.40

 

43.44

 

39.56

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N.M. = Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

(1) Annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

 

·

Net interest income for the first quarter of 2010 was $174.7 million, up $29.2 million, or 20.1 percent, compared with the first quarter of 2009 and up $5 million, or 3 percent, compared with the fourth quarter of 2009. The increase in net interest income from the first quarter of 2009 and from the fourth quarter of 2009 was primarily due to an increase in average loans and leases and reduced deposit costs.

 

 

 

 

·

Net interest margin in the first quarter of 2010 was 4.20 percent, compared with 3.66 percent in the first quarter of 2009 and 4.07 percent in the fourth quarter of 2009. The increase in net interest margin from the first quarter of 2009 was primarily due to decreased rates paid on deposits, partially offset by the increased negative effect of non-accrual loans and leases and restructured consumer real estate loans. The increase in net interest margin from the fourth quarter of 2009 was primarily due to decreased rates paid on deposits and the positive effect of replacing investments in agency debentures with higher yielding mortgage-backed securities.

 

-more-

 


 

4

 

Non-interest Income

 

 

·

Banking fees and service charges in the first quarter of 2010 were $100.3 million, up $10.6 million, or 11.9 percent, from the first quarter of 2009 and down $8.4 million, or 7.8 percent, from the fourth quarter of 2009. The increase from the first quarter of 2009 was primarily due to increased transaction activity and higher monthly account maintenance fees. The decrease from the fourth quarter of 2009 was primarily due to lower seasonal-related transaction activity.

 

 

 

 

·

Card revenues in the first quarter of 2010 were $27.1 million, up $2.1 million, or 8.5 percent, from the first quarter of 2009 and up $259 thousand, or 1 percent, from the fourth quarter of 2009. The increase from the first quarter of 2009 was primarily the result of an increase in customer transactions and growth in the number of active accounts. The increase from the fourth quarter of 2009 was primarily due to growth in average transaction size.

 

 

 

 

·

Leasing and equipment finance revenues in the first quarter of 2010 were $20.4 million, up $7.7 million, or 60.9 percent, from the first quarter of 2009 and down $4.1 million, or 16.6 percent, from the fourth quarter of 2009. The increase from the first quarter of 2009 was primarily due to increased operating lease revenue which was partially offset by an increase in operating lease depreciation. These increases were caused by an increase in operating leases due to an acquisition made in the third quarter of 2009. The decrease in leasing revenues from the fourth quarter of 2009 was primarily due to decreased sales-type lease activity which is based on customer-driven factors not within TCF’s control.

 

 

 

 

·

Other non-interest income in the first quarter of 2010 was $2.5 million, up $2 million from the first quarter of 2009 and down $309 thousand from the fourth quarter of 2009. The increase in other non-interest income in the first quarter of 2010 from the first quarter of 2009 was primarily due to increased fees related to growth in the inventory finance business.

 

-more-

 


 

5

 

Loans and Leases

 

Average Loans and Leases

 

 

 

 

 

 

 

 

 

 

Table 3

 

 

 

 

 

 

 

 

 

 

Percent Change

 

($ in thousands)

 

 

1Q
2010

 

4Q
2009

 

1Q
2009

 

1Q10 vs
4Q09

 

1Q10 vs 1Q09

 

Consumer real estate

 

 

 

 

 

 

 

 

 

 

 

 

First mortgage lien

 

 

$  4,946,473

 

$  4,954,306

 

$  4,896,521

 

     (.2)%

 

   1.0%

 

Junior lien

 

 

2,312,332

 

2,321,045

 

2,399,178

 

  (.4)

 

(3.6)

 

Total

 

 

7,258,805

 

7,275,351

 

7,295,699

 

  (.2)

 

  (.5)

 

Consumer other

 

 

30,406

 

32,676

 

39,539

 

(6.9)

 

(23.1)  

 

Total consumer

 

 

7,289,211

 

7,308,027

 

7,335,238

 

  (.3)

 

  (.6)

 

Commercial real estate

 

 

3,272,793

 

3,241,269

 

2,998,516

 

1.0

 

9.1

 

Commercial business

 

 

429,442

 

443,013

 

499,756

 

(3.1)

 

(14.1)

 

Total commercial

 

 

3,702,235

 

3,684,282

 

3,498,272

 

  .5

 

5.8

 

Leasing and equipment finance

 

 

3,043,664

 

3,049,093

 

2,632,893

 

  (.2)

 

15.6  

 

Inventory finance

 

 

553,095

 

383,291

 

28,475

 

44.3  

 

N.M. 

 

Total

 

 

$14,588,205

 

$14,424,693

 

$13,494,878

 

1.1

 

8.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N.M. = Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·

Average consumer real estate loan balances decreased $36.9 million, or .5 percent, from the first quarter of 2009 and decreased $16.5 million, or .2 percent, from the fourth quarter of 2009. Decreases from both periods reflect less demand for home equity financing due in part to declines in home values and reductions in consumer spending in the weak economy.

 

 

 

 

·

Variable-rate consumer real estate loans increased $197.2 million from March 31, 2009 and $77 million from December 31, 2009, while fixed-rate consumer real estate loans decreased $258 million from March 31, 2009 and $110.5 million from December 31, 2009.

 

 

 

 

·

At March 31, 2010, 68.2 percent of the consumer real estate loan portfolio was secured by first liens.

 

 

 

 

·

Average commercial loan balances in the first quarter of 2010 increased $204 million, or 5.8 percent, from the first quarter of 2009 and increased $18 million, or .5 percent, from the fourth quarter of 2009.

 

 

 

 

·

Average leasing and equipment finance balances in the first quarter of 2010 increased $410.8 million, or 15.6 percent, from the first quarter of 2009 and was flat from the fourth quarter of 2009. Portfolio purchases and company acquisitions in the first and third quarters of 2009 contributed $290.9 million to the increase in year-over-year average balances.

 

-more-

 


 

6

 

 

·

Average inventory finance loans in the first quarter of 2010 increased $169.8 million, or 44.3 percent, from the fourth quarter of 2009. The increase was due primarily to the full quarter impact of inventory finance programs added in the fourth quarter of 2009 as well as increased seasonal activity by dealers in the lawn and garden industry.

 

Securities Available for Sale

 

Average Securities Available for Sale

 

 

 

 

 

 

 

 

 

Table 4

 

 

 

 

 

 

 

 

 

Yield

 

($ in thousands)

 

1Q
2010

 

4Q
2009

 

1Q
2009

 

1Q10

 

1Q09

 

U.S. Government sponsored entities:

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

$1,885,076

 

$1,497,672

 

$2,002,962

 

    4.54%

 

      5.12%

 

Debentures

 

-

 

413,647

 

8,908

 

     -

 

  1.57

 

Other securities

 

5,105

 

68,472

 

506

 

  .47

 

  5.58

 

Total

 

$1,890,181

 

$1,979,791

 

$2,012,376

 

4.53

 

  5.11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·                  At March 31, 2010, the unrealized gains in the available for sale security portfolio were $11.5 million.

 

-more-

 


 

7

 

Deposits

 

Average Deposits

 

 

 

 

 

 

 

 

 

Table 5

 

 

 

 

 

 

 

 

 

Percent Change

 

($ in thousands)

 

1Q
2010

 

4Q
2009

 

1Q
2009

 

1Q10 vs
4Q09

 

1Q10 vs
1Q09

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$  4,406,807

 

$  4,116,290

 

$  3,951,832

 

   7.1%

 

  11.5%

 

Savings

 

5,363,268

 

5,231,159

 

3,815,082

 

2.5

 

40.6  

 

Money market

 

668,581

 

671,755

 

646,347

 

  (.5)

 

3.4

 

Subtotal

 

10,438,656

 

10,019,204

 

8,413,261

 

4.2

 

24.1  

 

Certificates

 

1,127,149

 

1,366,871

 

2,463,405

 

(17.5)  

 

(54.2)  

 

Total deposits

 

$11,565,805

 

$11,386,075

 

$10,876,666

 

1.6

 

6.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Average interest rate on deposits

 

.62%

 

.74%

 

1.49%

 

 

 

 

 

 

 

·

Total average deposits in the first quarter of 2010 were $11.6 billion, up $689.1 million, or 6.3 percent, from the first quarter of 2009 and up $179.7 million, or 1.6 percent, from the fourth quarter of 2009. The increase in average deposits in the first quarter of 2010 from the first quarter of 2009 was primarily due to strong growth in savings deposits resulting from several initiatives involving products, pricing and marketing efforts, partially offset by declines in certificates of deposits resulting from pricing strategies to reduce higher cost funds. Average deposit balances increased from the fourth quarter of 2009 primarily due to increases in checking and savings, partially offset by decreases in certificates of deposit balances.

 

 

 

 

·

The average interest rate paid on deposits in the first quarter of 2010 was .62 percent, down 87 basis points from the first quarter of 2009 and down 12 basis points from the fourth quarter of 2009. The average interest rate paid on deposits declined due to pricing strategies on certain deposit products and mix changes. The weighted average interest rate on deposits was .58 percent at March 31, 2010.

 

-more-

 


 

8

 

Non-interest Expense

 

Non-interest Expense

 

 

 

 

 

 

 

 

 

Table 6

 

 

 

 

 

 

 

 

 

Percent Change

 

($ in thousands)

 

1Q
2010

 

4Q
2009

 

1Q
2009

 

1Q10 vs
4Q09

 

1Q10 vs
1Q09

 

Compensation and
employee benefits

 

$  88,225

 

$  89,374

 

$  86,190

 

 

(1.3

)%

 

   2.4%

 

Occupancy and equipment

 

32,181

 

31,099

 

32,047

 

 

3.5

 

 

  .4

 

Deposit account premiums

 

6,798

 

9,347

 

6,576

 

 

(27.3

)

 

3.4

 

FDIC premiums

 

5,481

 

5,288

 

3,795

 

 

3.6

 

 

44.4  

 

Advertising and marketing

 

2,820

 

3,789

 

4,445

 

 

(25.6

)

 

(36.6)  

 

Other

 

34,764

 

40,642

 

32,016

 

 

(14.5

)

 

8.6

 

Subtotal

 

170,269

 

179,539

 

165,069

 

 

(5.2

)

 

3.2

 

Operating lease depreciation

 

10,040

 

10,750

 

4,024

 

 

(6.6

)

 

149.5    

 

Foreclosed real estate and
repossessed assets, net

 

8,906

 

12,088

 

4,291

 

 

(26.3

)

 

107.6    

 

Other credit costs, net

 

2,587

 

4,386

 

824

 

 

(41.0

)

 

N.M.

 

Total non-interest expense

 

$191,802

 

$206,763

 

$174,208

 

 

(7.2

)

 

10.1  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·

The increase in compensation and employee benefits costs in the first quarter of 2010 from the first quarter of 2009 was primarily due to higher employee medical plan expenses and growth in the specialty finance businesses. The decrease in compensation and employee benefits costs from the fourth quarter of 2009 was primarily due to decreased salaries and incentives as a result of headcount reductions related to the corporate reorganization which occurred in the fourth quarter of 2009.

 

 

 

 

·

Deposit account premiums were $6.8 million for the first quarter of 2010, up $222 thousand, or 3.4 percent, from the first quarter of 2009 and down $2.5 million, or 27.3 percent, from the fourth quarter of 2009. The decrease in deposit account premiums from the fourth quarter of 2009 was primarily due to seasonally lower new checking account production.

 

 

 

 

·

The increase in FDIC premiums in the first quarter of 2010 from the first quarter of 2009 was primarily due to higher deposit insurance rates and deposit growth.

 

 

 

 

·

Other non-interest expense decreased $5.9 million, or 14.5 percent, from the fourth quarter of 2009, primarily due to decreased severance costs of $3.2 million.

 

-more-

 


 

9

 

 

·

Foreclosed real estate and repossessed asset expenses in the first quarter of 2010 increased $4.6 million from the first quarter of 2009 and decreased $3.2 million from the fourth quarter of 2009. The increase from the first quarter of 2009 was primarily due to increased numbers of both foreclosed commercial and consumer real estate properties along with continued adjustments to property valuations as a result of falling values for most of 2009. The decrease from the fourth quarter of 2009 was primarily due to decreased losses on sales and valuations and lower legal expenses.

 

Credit Quality

 

Credit Quality Summary

 

 

 

 

 

 

 

 

 

Table 7

 

 

 

 

 

 

 

 

 

Percent Change

 

($ in thousands)

 

1Q
2010

 

4Q
2009

 

1Q
2009

 

1Q10 vs
4Q09

 

1Q10 vs
1Q09

 

Allowance for Loan and Lease Losses

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

244,471

 

$

215,732

 

$

172,442

 

13.3%

 

41.8%

 

Charge-offs

 

(50,551)

 

(52,841)

 

(38,881)

 

(4.3)

 

30.0  

 

Recoveries

 

6,019

 

4,191

 

3,943

 

43.6  

 

52.7  

 

Net charge-offs

 

(44,532)

 

(48,650)

 

(34,938)

 

(8.5)

 

27.5  

 

Provision for credit losses

 

50,491

 

77,389

 

43,712

 

(34.8)  

 

15.5  

 

Balance at end of period

 

$

250,430

 

$

244,471

 

$

181,216

 

2.4

 

38.2  

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance as a percentage of period end loans and leases

 

1.70%

 

1.68%

 

1.31%

 

 

 

 

 

Ratio of allowance to net charge-offs(1)

 

1.4X

 

1.3X

 

1.3X

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit Loss Reserves

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan and lease losses

 

$

250,430

 

$

244,471

 

$

181,216

 

2.4

 

38.2  

 

Reserves netted against portfolio asset balances

 

8,040

 

10,168

 

15,102

 

(20.9)  

 

(46.8)  

 

Reserves for unfunded commitments

 

3,770

 

3,850

 

1,730

 

(2.1)

 

117.9    

 

Total credit loss reserves

 

$

262,240

 

$

258,489

 

$

198,048

 

1.5

 

32.4  

 

 

 

 

 

 

 

 

 

 

 

 

 

Total credit loss reserves as a % of period end loans and leases

 

1.78%

 

1.77%

 

1.43%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans and leases

 

$

305,401

 

$

296,275

 

$

205,916

 

3.1

 

48.3  

 

Real estate owned

 

101,436

 

105,768

 

70,748

 

(4.1)

 

43.4  

 

Total non-performing assets

 

$

406,837

 

$

402,043

 

$

276,664

 

1.2

 

47.1  

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing assets as a percentage of net loans and leases

 

2.81%

 

2.80%

 

2.03%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accruing consumer real estate restructured loans

 

$

285,606

 

$

252,510

 

$

24,877

 

13.1  

 

N.M. 

 

 

 

 

 

 

 

 

 

 

 

 

 

N.M. = Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

(1) Annualized.

 

 

 

 

 

 

 

 

 

 

 

 

-more-


 

10

 

At March 31, 2010:

 

 

·

Allowance for loan and lease losses was $250.4 million, or 1.70 percent of loans and leases, compared with $181.2 million, or 1.31 percent, at March 31, 2009 and $244.5 million, or 1.68 percent, at December 31, 2009.

 

 

 

 

·

Over 60-day delinquency rate was .82 percent, up from .60 percent at March 31, 2009 and up from .69 percent at December 31, 2009, primarily due to increases in consumer real estate loan delinquencies, partially offset by decreased delinquencies for leasing and equipment finance.

 

 

 

 

·

Non-accrual loans and leases increased $9.1 million, or 3.1 percent, from December 31, 2009, primarily due to increases in consumer real estate non-accrual loans resulting from continued financial stress on consumers and due to increases in leasing and equipment finance non-accrual balances. Non-accrual loans and leases increased $99.5 million, or 48.3 percent, from March 31, 2009 primarily due to increases in both consumer and leasing and equipment finance non-accrual loans.

 

 

 

 

·

Loan restructuring programs for consumer real estate borrowers implemented in the third quarter of 2009 have resulted in an increase in troubled debt restructurings, which management refers to as restructured loans. Restructured loan borrowers are experiencing financial difficulties, mainly related to unemployment and underemployment. These loans are modified to assist customers with their temporary financial hardship by lowering their monthly loan payments through a reduced interest rate for up to 18 months. These customers have demonstrated their ability to make the modified loan payment with verified current income. Performing restructured loans accrue interest at a reduced interest rate over their restructured period. During the first quarter of 2010, TCF restructured loans totaling $41.1 million. At March 31, 2010, total accruing restructured loans were $285.6 million, up $33.1 million from December 31, 2009 and up $260.7 million from March 31, 2009. Reserves for losses on accruing consumer real estate restructured loans were $30 million, or 10.5 percent of the outstanding balance at March 31, 2010. The over 60-day delinquency rate on these restructured loans was 4.33 percent at March 31, 2010.

 

-more-

 


 

11

 

For the quarter ended March 31, 2010:

 

 

·

Provision for credit losses was $50.5 million, up from $43.7 million in the first quarter of 2009 and down from $77.4 million recorded in the fourth quarter of 2009. The increase from the first quarter of 2009 was primarily due to increased reserves for restructured consumer real estate loans and increased consumer real estate net charge-offs. The decrease from the fourth quarter of 2009 was due to decreased net charge-offs and lower levels of reserve build on the consumer real estate portfolio as the rate of increase in losses has slowed.

 

 

 

 

·

Net loan and lease charge-offs were $44.5 million, or 1.22 percent annualized, of average loans and leases, up from $34.9 million, or 1.04 percent annualized, of average loans and leases from the first quarter of 2009 and down from $48.7 million, or 1.35 percent annualized, of average loans and leases in the fourth quarter of 2009. Increases over the first quarter of 2009 were primarily due to increases in consumer real estate and leasing and equipment finance net charge-offs, partially offset by decreases in commercial business net charge-offs. The decrease from the fourth quarter of 2009 was the result of decreases in consumer real estate and leasing and equipment finance loan charge-offs, partially offset by an increase in commercial real estate loan charge-offs.

 

Income Taxes

 

 

·

Income tax expense was $20.8 million for the first quarter of 2010, or 37.8 percent of pre-tax income, compared with $15.1 million, or 36.2 percent of pre-tax income, for the comparable 2009 period and $9.4 million, or 32.8 percent of pre-tax income, for the fourth quarter of 2009. The effective tax rate for the fourth quarter of 2009 had a year-to-date change in the annual effective income tax of $1.1 million, or 85 basis points. Excluding this change, the fourth quarter 2009 effective income tax rate would have been 36.7 percent.

 

-more-

 


 

12

 

Capital and Liquidity

 

Capital Information

 

 

 

Table 8

 

At period end

 

 

 

 

 

($ in thousands, except per-share data)

 

1Q
2010

 

4Q
2009

 

Total equity

 

$1,393,617

 

 

 

$1,179,755

 

 

 

Total equity to total assets

 

              7.66%

 

 

 

              6.60%

 

 

 

Book value per common share

 

$         9.74

 

 

 

$         9.10

 

 

 

Tangible realized common equity to tangible assets(1)

 

              6.87%

 

 

 

              5.86%

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk-based capital

 

 

 

 

 

 

 

 

 

Tier 1

 

$1,369,005

 

     9.98%

 

$1,161,750

 

     8.52%

 

Total

 

  1,713,369

 

12.49

 

  1,514,940

 

11.12

 

Total stated “well-capitalized” requirement

 

  1,372,222

 

10.00

 

  1,362,787

 

10.00

 

Excess over stated “well-capitalized” requirement

 

     341,147

 

  2.49

 

     152,153

 

  1.12

 

 

 

 

 

 

 

 

 

 

 

Tier 1 common capital

 

$1,242,208

 

     9.05%

 

$1,042,357

 

     7.65%

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

·

In February of 2010, TCF completed a public offering of common stock which raised net proceeds of $164.6 million through the issuance of 12,322,250 common shares.

 

 

 

 

·

Total risk-based capital at March 31, 2010 of $1.7 billion, or 12.49 percent of risk-weighted assets, was $341.1 million in excess of the stated “well-capitalized” requirement. Tier 1 common capital at March 31, 2010 was $1.2 billion, or 9.05 percent of risk-weighted assets. Increases in tier 1, total risk-based and tier 1 common capital were primarily the result of TCF’s public offering of common stock in February of 2010 as well as increased retained earnings.

 

 

 

 

·

On April 19, 2010, the Board of Directors of TCF declared a regular quarterly cash dividend of five cents per common share payable on May 28, 2010 to stockholders of record at the close of business on April 30, 2010.

 

 

 

 

·

At March 31, 2010, TCF had $2.2 billion in unused, secured borrowing capacity at the FHLB of Des Moines and $517 million in unused, secured borrowing capacity at the Federal Reserve Discount Window.

 

-more-


 

13

 

Website Information

 

A live webcast of TCF’s conference call to discuss first quarter earnings will be hosted at TCF’s website, http://ir.tcfbank.com, on April 22, 2010 at 10:00 a.m., CT. Additionally, the webcast is 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, quarterly reports, investor presentations and SEC filings.

 

 

TCF is a Wayzata, Minnesota-based national financial holding company with $18.2 billion in total assets. TCF has 441 banking offices in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana, Arizona and South Dakota, providing retail and commercial banking services. TCF also conducts commercial leasing and equipment finance business in all 50 states and commercial inventory finance business in the U.S. and Canada. For more information about TCF, please visit www.tcfbank.com.

 

 


 

14

 

Forward-Looking Information

 

This earnings release and other reports issued by the Company, including reports filed with the SEC, may contain “forward-looking” statements that deal with future results, plans or performance. In addition, TCF’s management may make such statements orally to the media, or to securities analysts, investors or others. Forward-looking statements deal with matters that do not relate strictly to historical facts. TCF’s future results may differ materially from historical performance and forward-looking statements about TCF’s expected financial results or other plans and are subject to a number of risks and uncertainties. These include, but are not limited to the following:

 

Adverse Economic or Business Conditions, Credit Risks.  Continued or deepening deterioration in general economic and banking industry conditions, or continued increases in unemployment in TCF’s primary banking markets; adverse economic, business and competitive developments such as shrinking interest margins, deposit outflows, deposit account attrition, or an inability to increase the number of deposit accounts; adverse changes in credit and other risks posed by TCF’s loan, lease, investment, and securities available for sale portfolios, including continuing declines in commercial or residential real estate values or changes in the allowance for loan and lease losses dictated by new market conditions or regulatory requirements; interest rate risks resulting from fluctuations in prevailing interest rates or other factors that result in a mismatch between yields earned on TCF’s interest-earning assets and the rates paid on its deposits and borrowings.

 

Earnings/Capital Constraints, Liquidity Risks.  Limitations on TCF’s ability to pay dividends or to increase dividends in the future because of financial performance deterioration, regulatory restrictions or limitations; increased deposit insurance premiums, special assessments or other costs related to deteriorating conditions in the banking industry and the economic impact on banks of the Emergency Economic Stabilization Act of 2008, as amended (“EESA”); the impact of financial regulatory reform proposals, including possible additional capital requirements; adverse changes in securities markets directly or indirectly affecting TCF’s ability to sell assets or to fund its operations; diminished unsecured borrowing capacity resulting from TCF credit rating downgrades and unfavorable conditions in the credit markets that restrict or limit various funding sources; costs associated with new regulatory requirements or interpretive guidance relating to liquidity.

 

Legislative and Regulatory Requirements.  Consumer protection and supervisory requirements which could include the creation of a new consumer protection agency and limits on Federal preemption for state laws that could be applied to national banks; the imposition of requirements with an adverse impact relating to TCF’s lending, loan collection and other business activities as a result of the EESA,  or other legislative or regulatory developments such as mortgage foreclosure moratorium laws; reduction of interchange revenue from debit card transactions; impact of legislative, regulatory or other changes affecting customer account charges and fee income; changes to bankruptcy laws which would result in the loss of all or part of TCF’s security interest due to collateral value declines (so-called “cramdown” provisions); increased health care costs resulting from recently enacted Federal health care reform legislation; adverse regulatory examinations and resulting enforcement actions, including those provided for under the Bank Secrecy Act; heightened regulatory practices, requirements or expectations, including, but not limited to, requirements related to the Bank Secrecy Act and anti-money laundering compliance activity.

 

Risks Relating to New Product Introduction.  TCF has recently introduced a new anchor retail deposit account product that replaces TCF Totally Free Checking, and that calls for a monthly maintenance fee on accounts not meeting certain specific requirements. TCF is also in the process of implementing new regulatory requirements that prohibit financial institutions from charging NSF fees on point-of-sale and ATM transactions unless customers opt-in.  Customer acceptance of the new product changes and regulatory requirements cannot be predicted with certainty, and these changes may have an adverse impact on TCF’s ability to generate and retain accounts and on its fee revenue.

 

Litigation Risks.  Results of litigation, including class action litigation concerning TCF’s lending or deposit activities or fees or charges, or employment practices, and possible increases in indemnification obligations for certain litigation against Visa U.S.A. (“covered litigation”) and potential reductions in card revenues resulting from covered litigation or other litigation against Visa.

 

-more-

 


 

15

 

Competitive Conditions; Supermarket Branching Risk.  Reduced demand for financial services and loan and lease products; adverse developments affecting TCF’s supermarket banking relationships or any of the supermarket chains in which TCF maintains supermarket branches.

 

Accounting, Audit, Tax and Insurance Matters.  Changes in accounting standards or interpretations of existing standards; monetary, fiscal or tax policies of the federal or state governments, including adoption of state legislation that would increase state taxes; adverse state or Federal tax assessments or findings in tax audits; lack of or inadequate insurance coverage for claims against TCF.

 

Technological and Operational Matters.  Technological, computer related or operational difficulties or loss or theft of information and the possibility that deposit account losses (fraudulent checks, etc.) may increase.

 

Investors should consult TCF’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K for additional important information about the Company.

 

-more-

 


 

16

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

 

 

 

Three Months Ended

 

 

 

 

 

March 31,

 

Change

 

 

 

2010

 

2009

 

$

 

%

 

Interest income:

 

 

 

 

 

 

 

 

 

Loans and leases

 

$

221,264

 

$

209,377

 

$

11,887

 

5.7

%

Securities available for sale

 

21,407

 

25,701

 

(4,294)

 

(16.7)

 

Investments and other

 

1,141

 

856

 

285

 

33.3

 

Total interest income

 

243,812

 

235,934

 

7,878

 

3.3

 

Interest expense:

 

 

 

 

 

 

 

 

 

Deposits

 

17,604

 

40,084

 

(22,480)

 

(56.1)

 

Borrowings

 

51,546

 

50,437

 

1,109

 

2.2

 

Total interest expense

 

69,150

 

90,521

 

(21,371)

 

(23.6)

 

Net interest income

 

174,662

 

145,413

 

29,249

 

20.1

 

Provision for credit losses

 

50,491

 

43,712

 

6,779

 

15.5

 

Net interest income after provision for credit losses

 

124,171

 

101,701

 

22,470

 

22.1

 

Non-interest income:

 

 

 

 

 

 

 

 

 

Fees and service charges

 

66,172

 

57,064

 

9,108

 

16.0

 

Card revenue

 

27,072

 

24,960

 

2,112

 

8.5

 

ATM revenue

 

7,022

 

7,598

 

(576)

 

(7.6)

 

Subtotal

 

100,266

 

89,622

 

10,644

 

11.9

 

Leasing and equipment finance

 

20,352

 

12,651

 

7,701

 

60.9

 

Other

 

2,455

 

458

 

1,997

 

N.M.

 

Fees and other revenue

 

123,073

 

102,731

 

20,342

 

19.8

 

Gains (losses) on securities, net

 

(430)

 

11,548

 

(11,978)

 

N.M.

 

Total non-interest income

 

122,643

 

114,279

 

8,364

 

7.3

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

88,225

 

86,190

 

2,035

 

2.4

 

Occupancy and equipment

 

32,181

 

32,047

 

134

 

.4

 

Deposit account premiums

 

6,798

 

6,576

 

222

 

3.4

 

FDIC premiums

 

5,481

 

3,795

 

1,686

 

44.4

 

Advertising and marketing

 

2,820

 

4,445

 

(1,625)

 

(36.6)

 

Other

 

34,764

 

32,016

 

2,748

 

8.6

 

Subtotal

 

170,269

 

165,069

 

5,200

 

3.2

 

Operating lease depreciation

 

10,040

 

4,024

 

6,016

 

149.5

 

Foreclosed real estate and repossessed assets, net

 

8,906

 

4,291

 

4,615

 

107.6

 

Other credit costs, net

 

2,587

 

824

 

1,763

 

N.M.

 

Total non-interest expense

 

191,802

 

174,208

 

17,594

 

10.1

 

Income before income tax expense

 

55,012

 

41,772

 

13,240

 

31.7

 

Income tax expense

 

20,790

 

15,125

 

5,665

 

37.5

 

Income after income tax expense

 

34,222

 

26,647

 

7,575

 

28.4

 

Income attributable to non-controlling interest

 

301

 

-

 

301

 

N.M.

 

Net income

 

33,921

 

26,647

 

7,274

 

27.3

 

Preferred stock dividends

 

-

 

5,185

 

(5,185)

 

N.M.

 

Net income available to common stockholders

 

$

33,921

 

$

21,462

 

$

12,459

 

58.1

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

Basic

 

$

.26

 

$

.17

 

$

.09

 

52.9

 

Diluted

 

.26

 

.17

 

.09

 

52.9

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

.05

 

$

.25

 

$

(.20)

 

(80.0)

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Basic

 

132,343

 

125,939

 

6,404

 

5.1

 

Diluted

 

132,419

 

125,939

 

6,480

 

5.1

 

 

N.M. Not meaningful.

 

-more-


 

17

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in thousands, except per-share data)

(Unaudited)

 

 

 

At

 

At

 

At

 

% Change From

 

 

 

March 31,

 

December 31,

 

March 31,

 

December 31,

 

March 31,

 

 

 

2010

 

2009

 

2009

 

2009

 

2009

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

533,020

 

$

299,127

 

$

1,024,741

 

78.2

%

(48.0)

%

Investments

 

154,625

 

163,692

 

166,879

 

(5.5)

 

(7.3)

 

Securities available for sale

 

1,899,825

 

1,910,476

 

2,098,628

 

(.6)

 

(9.5)

 

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate and other

 

7,295,765

 

7,331,991

 

7,363,436

 

(.5)

 

(.9)

 

Commercial real estate

 

3,281,179

 

3,269,003

 

3,039,480

 

.4

 

8.0

 

Commercial business

 

421,554

 

449,516

 

493,943

 

(6.2)

 

(14.7)

 

Leasing and equipment finance

 

3,007,504

 

3,071,429

 

2,798,134

 

(2.1)

 

7.5

 

Inventory finance

 

700,421

 

468,805

 

100,624

 

49.4

 

N.M.

 

Total loans and leases

 

14,706,423

 

14,590,744

 

13,795,617

 

.8

 

6.6

 

Allowance for loan and lease losses

 

(250,430)

 

(244,471)

 

(181,216)

 

2.4

 

38.2

 

Net loans and leases

 

14,455,993

 

14,346,273

 

13,614,401

 

.8

 

6.2

 

Premises and equipment, net

 

444,719

 

447,930

 

448,047

 

(.7)

 

(.7)

 

Goodwill

 

152,599

 

152,599

 

152,599

 

-

 

-

 

Other assets

 

546,533

 

565,078

 

577,046

 

(3.3)

 

(5.3)

 

Total assets

 

$

18,187,314

 

$

17,885,175

 

$

18,082,341

 

1.7

 

.6

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$

4,601,984

 

$

4,400,290

 

$

4,101,540

 

4.6

 

12.2

 

Savings

 

5,499,835

 

5,339,955

 

4,648,463

 

3.0

 

18.3

 

Money market

 

672,894

 

640,569

 

660,862

 

5.0

 

1.8

 

Subtotal

 

10,774,713

 

10,380,814

 

9,410,865

 

3.8

 

14.5

 

Certificates of deposit

 

1,107,660

 

1,187,505

 

2,236,338

 

(6.7)

 

(50.5)

 

Total deposits

 

11,882,373

 

11,568,319

 

11,647,203

 

2.7

 

2.0

 

Short-term borrowings

 

17,590

 

244,604

 

26,299

 

(92.8)

 

(33.1)

 

Long-term borrowings

 

4,496,574

 

4,510,895

 

4,311,568

 

(.3)

 

4.3

 

Total borrowings

 

4,514,164

 

4,755,499

 

4,337,867

 

(5.1)

 

4.1

 

Accrued expenses and other liabilities

 

397,160

 

381,602

 

597,315

 

4.1

 

(33.5)

 

Total liabilities

 

16,793,697

 

16,705,420

 

16,582,385

 

.5

 

1.3

 

Equity:

 

 

 

 

 

 

 

 

 

 

 

Preferred stock, par value $.01 per share,
30,000,000 authorized; 0, 0 and 361,172 shares issued

 

-

 

-

 

349,007

 

-

 

N.M.

 

Common stock, par value $.01 per share,
280,000,000 shares authorized; 142,560,181,
130,339,500 and 130,410,951 shares issued

 

1,426

 

1,303

 

1,304

 

9.4

 

9.4

 

Additional paid-in capital

 

455,608

 

297,429

 

315,025

 

53.2

 

44.6

 

Retained earnings, subject to certain restrictions

 

973,513

 

946,002

 

917,762

 

2.9

 

6.1

 

Accumulated other comprehensive income (loss)

 

(11,836)

 

(18,545)

 

4,391

 

(36.2)

 

N.M.

 

Treasury stock at cost, 622,618, 1,136,688
and 2,573,813 shares, and other

 

(36,891)

 

(50,827)

 

(87,533)

 

(27.4)

 

(57.9)

 

Total TCF Financial Corp. stockholders’ equity

 

1,381,820

 

1,175,362

 

1,499,956

 

17.6

 

(7.9)

 

Non-controlling interest in subsidiaries

 

11,797

 

4,393

 

-

 

168.5

 

N.M.

 

Total equity

 

1,393,617

 

1,179,755

 

1,499,956

 

18.1

 

(7.1)

 

Total liabilities and equity

 

$

18,187,314

 

$

17,885,175

 

$

18,082,341

 

1.7

 

.6

 

 

N.M. Not meaningful.

 

-more-


 

18

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CREDIT QUALITY DATA

(Dollars in thousands)

(Unaudited)

 

Allowance for Loan and Lease Losses

 

 

 

At March 31, 2010

 

At December 31, 2009

 

At March 31, 2009

 

Change from

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dec. 31,

 

Mar. 31,

 

 

 

Balance

 

% of Portfolio

 

Balance

 

% of Portfolio

 

Balance

 

% of Portfolio

 

2009

 

2009

 

Consumer real estate

 

$

170,932

 

2.36

%

$

164,966

 

2.27

%

$

103,475

 

1.42

%

9

bps

94

bps

Consumer other

 

2,556

 

5.25

 

2,476

 

4.82

 

2,519

 

4.53

 

43

 

72

 

Total consumer real estate and other

 

173,488

 

2.38

 

167,442

 

2.28

 

105,994

 

1.44

 

10

 

94

 

Commercial real estate

 

36,119

 

1.10

 

37,274

 

1.14

 

40,354

 

1.33

 

(4)

 

(23)

 

Commercial business

 

5,301

 

1.26

 

6,230

 

1.39

 

10,281

 

2.08

 

(13)

 

(82)

 

Leasing and equipment finance

 

32,993

 

1.10

 

32,063

 

1.04

 

24,140

 

.86

 

6

 

24

 

Inventory finance

 

2,529

 

.36

 

1,462

 

.31

 

447

 

.44

 

5

 

(8)

 

Total

 

$

250,430

 

1.70

 

$

244,471

 

1.68

 

$

181,216

 

1.31

 

2

 

39

 

 

Credit Loss Reserves

 

 

 

At March 31, 2010

 

At December 31, 2009

 

At March 31, 2009

 

Change from

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dec. 31,

 

Mar. 31,

 

 

 

Balance

 

% of Portfolio

 

Balance

 

% of Portfolio

 

Balance

 

% of Portfolio

 

2009

 

2009

 

Allowance for loan and lease losses

 

$

250,430

 

1.70

%

$

244,471

 

1.68

%

$

181,216

 

1.31

%

2

bps

39

bps

Reserves netted against portfolio asset balances

 

8,040

 

N.M.

 

10,168

 

N.M.

 

15,102

 

N.M.

 

-

 

-

 

Reserves for unfunded commitments

 

3,770

 

N.M.

 

3,850

 

N.M.

 

1,730

 

N.M.

 

-

 

-

 

Total

 

$

262,240

 

1.78

 

$

258,489

 

1.77

 

$

198,048

 

1.43

 

1

 

35

 

 

Net Charge-Offs

 

 

 

Quarter Ended

 

Change from

 

 

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Mar. 31,

 

 

 

2010

 

2009

 

2009

 

2009

 

2009

 

2009

 

2009

 

Consumer real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First mortgage lien

 

$

16,266

 

$

16,646

 

$

15,694

 

$

11,795

 

$

10,477

 

$

(380)

 

$

5,789

 

Junior lien

 

12,996

 

14,757

 

14,201

 

11,201

 

11,849

 

(1,761)

 

1,147

 

Total consumer real estate

 

29,262

 

31,403

 

29,895

 

22,996

 

22,326

 

(2,141)

 

6,936

 

Consumer other

 

365

 

2,219

 

2,587

 

1,661

 

1,290

 

(1,854)

 

(925)

 

Total consumer real estate and other

 

29,627

 

33,622

 

32,482

 

24,657

 

23,616

 

(3,995)

 

6,011

 

Commercial real estate

 

6,521

 

5,585

 

6,758

 

19,531

 

3,640

 

936

 

2,881

 

Commercial business

 

1,316

 

1,674

 

4,514

 

(55)

 

2,981

 

(358)

 

(1,665)

 

Leasing and equipment finance

 

6,643

 

7,681

 

9,409

 

5,529

 

4,701

 

(1,038)

 

1,942

 

Inventory finance

 

425

 

88

 

94

 

-

 

-

 

337

 

425

 

Total

 

$

44,532

 

$

48,650

 

$

53,257

 

$

49,662

 

$

34,938

 

$

(4,118)

 

$

9,594

 

 

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,

 

 

 

2010

 

2009

 

2009

 

2009

 

2009

 

2009

 

2009

 

Consumer real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First mortgage lien

 

1.32

%

1.34

%

1.27

%

.96

%

.86

%

(2)

bps

46

bps

Junior lien

 

2.25

 

2.54

 

2.44

 

1.90

 

1.98

 

(29)

 

27

 

Total consumer real estate

 

1.61

 

1.73

 

1.65

 

1.26

 

1.22

 

(12)

 

39

 

Consumer other

 

N.M.

 

N.M.

 

N.M.

 

N.M.

 

N.M.

 

N.M.

 

N.M.

 

Total consumer real estate and other

 

1.63

 

1.84

 

1.78

 

1.35

 

1.29

 

(21)

 

34

 

Commercial real estate

 

.80

 

.69

 

.85

 

2.51

 

.49

 

11

 

31

 

Commercial business

 

1.23

 

1.51

 

3.78

 

(.05)

 

2.39

 

(28)

 

(116)

 

Leasing and equipment finance

 

.87

 

1.01

 

1.34

 

.79

 

.71

 

(14)

 

16

 

Inventory finance

 

.31

 

.09

 

.20

 

-

 

-

 

22

 

31

 

Total

 

1.22

 

1.35

 

1.52

 

1.43

 

1.04

 

(13)

 

18

 

 

(1)  Annualized.

N.M.  Not meaningful. 

 

-more-


 

19

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CREDIT QUALITY DATA

(Dollars in thousands)

(Unaudited)

 

 

 

At

 

At

 

At

 

At

 

At

 

Change from

 

 

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Mar. 31,

 

 

 

2010

 

2009

 

2009

 

2009

 

2009

 

2009

 

2009

 

Restructured Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accruing consumer real estate

 

$

285,606

 

$

252,510

 

$

159,881

 

$

51,483

 

$

24,877

 

$

33,096

 

$

260,729