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Section 1: 8-K (8-K)

 

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM 8-K

 


 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):  July 15, 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 July 15, 2010, attached to this Form 8-K as Exhibit 99.1, announcing its results of operations for the quarter ended June 30, 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 July 15, 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:    July 15, 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 61st Consecutive Quarter of Net Income – Earns $.32 Per Share

 

SECOND QUARTER HIGHLIGHTS

·                  Diluted earnings per common share of 32 cents

·                  Net income of $45 million, up 91.2 percent

·                  Total revenue increased by $15.6 million, or 5.2 percent

·                  Core operating expenses decreased $6.9 million, or 4 percent

·                  Net interest margin of 4.18 percent, up from 3.80 percent

·                  Average deposits increased by $56.7 million, or .5 percent

 

Earnings Summary

 

 

 

 

 

 

 

 

 

 

Table 1  

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands, except per-share data)

 

 

 

 

Percent Change

 

 

 

 

 

 

 

 

 

 

  2Q

 

 

  1Q

 

 

  2Q

 

2Q10 vs

 

2Q10 vs

 

 

YTD

 

 

YTD

 

Percent

 

 

 

 

2010

 

 

2010

 

 

2009

 

1Q10

 

2Q09

 

 

2010

 

 

2009

 

Change

 

Net income

 

$

45,025

 

$

33,921

 

$

23,543

 

    32.7

%

    91.2

%

$

78,946

 

$

50,190

 

57.3

 % 

Diluted earnings per common share (1)

 

 

      .32

 

 

      .26

 

 

      .08

 

    23.1

 

    N.M.

 

 

      .58

 

 

      .25

 

132.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Ratios (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

  1.02 %

 

 

    .76 %

 

 

    .53 %

 

 

 

 

 

 

    .89 %

 

 

    .58 %

 

 

 

Return on average common equity (1)

 

 

12.71

 

 

10.68

 

 

  3.61

 

 

 

 

 

 

11.75

 

 

  5.59

 

 

 

Net interest margin

 

 

  4.18

 

 

  4.20

 

 

  3.80

 

 

 

 

 

 

  4.19

 

 

  3.73

 

 

 

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

 

 

  1.30

 

 

  1.22

 

 

  1.43

 

 

 

 

 

 

  1.26

 

 

  1.24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes a non-cash deemed preferred stock dividend of $12,025 recorded in the second quarter and year-to-date 2009. Excluding this amount, diluted earnings per common share was $.18 and $.35 and the return on average common equity was 7.82% and 7.70% for the second quarter and year-to-date 2009, respectively.

(2) Annualized.

 

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2

 

WAYZATA, MN, July 15, 2010 – TCF Financial Corporation (“TCF”) (NYSE: TCB) today reported diluted earnings per common share of 32 cents for the second quarter of 2010, compared with 8 cents in the second quarter of 2009 and 26 cents in the first quarter of 2010.  Diluted earnings per common share in the second quarter of 2009 was 18 cents excluding the non-cash deemed preferred stock dividend recorded in that period. Net income for the second quarter of 2010 was $45 million, compared with $23.5 million in the second quarter of 2009 and $33.9 million in the first quarter of 2010.

 

Diluted earnings per common share for the first six months of 2010 was 58 cents, compared with 25 cents for the same 2009 period.  Diluted earnings per common share for the first six months of 2009 was 35 cents excluding the non-cash deemed preferred stock dividend.  Net income for the first six months of 2010 was $78.9 million, compared with $50.2 million for the same 2009 period.

 

Chairman’s Statement

 

“We are pleased to report TCF’s 61st consecutive profitable quarter.  Our improving financial results are fueled by both increased revenues and decreased expenses, including a decrease in credit costs,” said William A. Cooper, TCF Chairman and CEO.  “While the economy remains battered by slow growth and high unemployment, TCF’s credit quality remains both stable and better than most of our competitors.  TCF is closely watching potential and actual regulatory changes coming out of Washington.  We are taking a proactive approach in adjusting our products and programs to comply with these changes.  TCF has remained profitable during this turbulent period by sticking to our conservative banking philosophy and I believe we are well positioned for success.”

 

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3

 

 Total Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 2  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent Change

 

 

 

 

 

 

 

 ($ in thousands)

 

 

2Q
2010

 

1Q
2010

 

2Q
2009

 

2Q10 vs
1Q10

 

2Q10 vs
2Q09

 

YTD
2010

 

YTD
2009

 

Percent Change

 

 Net interest income

 

 

$  176,499

 

$  174,662

 

$  156,463

 

   1.1%

 

 12.8%

 

$  351,161

 

$  301,876

 

16.3 

 Fees and other revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Fees and service charges

 

 

77,845

 

66,172

 

77,536

 

17.6  

 

  .4

 

144,017

 

134,600

 

7.0 

 

 Card revenue

 

 

28,591

 

27,072

 

26,604

 

5.6

 

7.5

 

55,663

 

51,564

 

7.9 

 

 ATM revenue

 

 

7,844

 

7,022

 

7,973

 

11.7  

 

(1.6)

 

14,866

 

15,571

 

(4.5)

 

 Total banking fees

 

 

114,280

 

100,266

 

112,113

 

14.0  

 

1.9

 

214,546

 

201,735

 

6.4 

 

 Leasing and equipment finance

 

 

20,528

 

20,352

 

16,881

 

  .9

 

21.6  

 

40,880

 

29,532

 

38.4 

 

 Other

 

 

1,235

 

2,455

 

820

 

(49.7)  

 

50.6  

 

3,690

 

1,278

 

188.7 

 

 Total fees and other revenue

 

 

136,043

 

123,073

 

129,814

 

10.5  

 

4.8

 

259,116

 

232,545

 

11.4 

 

 Gains (losses) on securities, net

 

 

(137

)

(430

)

10,556

 

68.1  

 

N.M.

 

(567

)

22,104

 

N.M. 

 

 Total non-interest income

 

 

135,906

 

122,643

 

140,370

 

10.8  

 

(3.2)

 

258,549

 

254,649

 

1.5 

 

 Total revenue

 

 

$  312,405

 

$  297,305

 

$  296,833

 

5.1

 

5.2

 

$  609,710

 

$  556,525

 

9.6 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Net interest margin(1)

 

 

4.18

 

%

4.20

 

%

3.80

 

%

 

 

 

 

4.19

 

%

3.73

 

%

 

 

 Fees and other revenue as a % of total revenue

 

 

43.55

 

 

41.40

 

 

43.73

 

 

 

 

 

 

42.50

 

 

41.79

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 N.M. = Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (1) Annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

·                  Net interest income for the second quarter of 2010 was $176.5 million, up $20 million, or 12.8 percent, compared with the second quarter of 2009 and up $1.8 million, or 1.1 percent, compared with the first quarter of 2010.  The increase in net interest income from the second quarter of 2009 was primarily due to decreased rates paid on deposits and growth in loans and leases, partially offset by increased non-accrual and restructured loans and leases. The increase from the first quarter of 2010 was primarily due to an increase in average inventory finance loans and decreased rates paid on deposits, partially offset by higher average non-accrual loans and leases.

 

·                  Net interest margin in the second quarter of 2010 was 4.18 percent, compared with 3.80 percent in the second quarter of 2009 and 4.20 percent in the first quarter of 2010.  The increase in net interest margin from the second quarter of 2009 was primarily due to decreased rates paid on deposits.  The decrease in net interest margin from the first quarter of 2010 was due to changes in earning asset mix and an increase in the negative effect of non-accrual loans and leases, partially offset by decreased rates paid on deposits.

 

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4

 

Non-interest Income

 

·                  Banking fees and service charges in the second quarter of 2010 were $77.8 million, essentially flat with the second quarter of 2009 and up $11.7 million, or 17.6 percent, from the first quarter of 2010.  The increase from the first quarter of 2010 was primarily due to seasonality and a full quarter of account maintenance fees on checking accounts not meeting certain requirements, which began in March.

 

·                  Card revenues in the second quarter of 2010 were $28.6 million, up $2 million, or 7.5 percent, from the second quarter of 2009 and up $1.5 million, or 5.6 percent, from the first quarter of 2010. The increase from the second quarter of 2009 was primarily the result of an increase in customer transactions.  The increase from the first quarter of 2010 was primarily the result of a seasonal increase in the number of customer transactions per account.

 

·                  Leasing and equipment finance revenues in the second quarter of 2010 were $20.5 million, up $3.6 million, or 21.6 percent, from the second quarter of 2009 and flat from the first quarter of 2010. The increase from the second 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 the balances of operating leases due to the acquisition of Fidelity National Capital, Inc. in the third quarter of 2009.

 

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5

 

Loans and Leases

 

 Average Loans and Leases

Table 3  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent Change

 

 

 

 

 

 

 

 ($ in thousands)

 

 

2Q
2010

 

1Q
2010

 

2Q
2009

 

2Q10 vs
1Q10

 

2Q10 vs
2Q09

 

YTD
2010

 

YTD
2009

 

Percent
Change

 

 Consumer real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 First mortgage lien

 

 

$   4,930,801

 

$   4,946,473

 

$   4,938,187

 

      (.3) %

 

      (.1) %

 

$   4,938,594

 

$   4,917,468

 

.4 

 Junior lien

 

 

2,303,400

 

2,312,332

 

2,355,913

 

  (.4)

 

(2.2)

 

2,307,841

 

2,377,426

 

(2.9)

 

 Total

 

 

7,234,201

 

7,258,805

 

7,294,100

 

  (.3)

 

  (.8)

 

7,246,435

 

7,294,894

 

(.7)

 

 Consumer other

 

 

27,584

 

30,406

 

36,255

 

(9.3)

 

(23.9)  

 

28,988

 

37,888

 

(23.5)

 

 Total consumer

 

 

7,261,785

 

7,289,211

 

7,330,355

 

  (.4)

 

  (.9)

 

7,275,423

 

7,332,782

 

(.8)

 

 Commercial real estate

 

 

3,322,986

 

3,272,793

 

3,110,030

 

1.5

 

6.8

 

3,298,028

 

3,054,581

 

8.0 

 

 Commercial business

 

 

398,829

 

429,442

 

483,493

 

(7.1)

 

(17.5)  

 

414,051

 

491,580

 

(15.8)

 

 Total commercial

 

 

3,721,815

 

3,702,235

 

3,593,523

 

  .5

 

3.6

 

3,712,079

 

3,546,161

 

4.7 

 

 Leasing and equipment finance

 

 

3,021,532

 

3,043,664

 

2,809,787

 

  (.7)

 

7.5

 

3,032,537

 

2,721,829

 

11.4 

 

 Inventory finance

 

 

692,816

 

553,095

 

118,317

 

25.3  

 

N.M.

 

623,283

 

73,644

 

N.M. 

 

 Total

 

 

$ 14,697,948

 

$ 14,588,205

 

$ 13,851,982

 

  .8

 

6.1

 

$ 14,643,322

 

$ 13,674,416

 

7.1 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 N.M. = Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·                  Average consumer real estate loan balances decreased $59.9 million, or .8 percent, from the second quarter of 2009 and decreased $24.6 million, or .3 percent, from the first quarter of 2010.  Decreases from both periods reflect less consumer demand for financing due in part to declines in home values and reductions in spending in the weak economy.

 

·                  Variable-rate consumer real estate loans increased $300.1 million from June 30, 2009 and $133 million from March 31, 2010, while fixed-rate consumer real estate loans decreased $339.6 million from June 30, 2009 and $140.1 million from March 31, 2010. Variable-rate loans comprised 29.8 percent of total consumer real estate loans at June 30, 2010, up from 25.5 percent at June 30, 2009 and 27.9 percent at March 31, 2010.

 

·                  TCF is in a first lien position on 73.8 percent of its consumer real estate loan portfolio as of June 30, 2010.

 

·                  Average commercial loan balances in the second quarter of 2010 increased $128.3 million, or 3.6 percent, from the second quarter of 2009 and $19.6 million, or .5 percent, from the first quarter of 2010.

 

·                  Average leasing and equipment finance balances in the second quarter of 2010 increased $211.7 million, or 7.5 percent, from the second quarter of 2009 and were flat from the first quarter of 2010.  TCF’s acquisition of Fidelity National Capital, Inc. in the third quarter of 2009 contributed $204.6 million to the increase in year-over-year average balances.

 

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6

 

·                  Average inventory finance loans in the second quarter of 2010 increased $139.7 million, or 25.3 percent, from the first quarter of 2010.  The increase was primarily due to seasonal growth in receivables from lawn and garden programs.

 

Securities Available for Sale

 

Average Securities Available for Sale

 

Table 4  

 

 

 

 

 

 

 

 

Yield

 

 

 

 

 

Yield

 

($ in thousands)

 

2Q
2010

 

1Q
2010

 

2Q
2009

 

2Q10

 

2Q09

 

YTD
2010

 

YTD
2009

 

YTD
2010

 

YTD
2009

 

U.S. Government sponsored entities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

$ 1,860,233

 

$ 1,885,076

 

$ 1,656,767

 

     4.53%

 

     4.91%

 

$ 1,872,587

 

$ 1,828,908

 

     4.53%

 

     5.03%

 

Debentures

 

-

 

-

 

527,562

 

      -

 

  2.17

 

-

 

269,668

 

      -

 

  2.15

 

U.S. Treasury Bills

 

14,167

 

-

 

-

 

    .21

 

      -

 

7,122

 

-

 

    .21

 

      -

 

Other securities

 

4,358

 

5,105

 

498

 

    .46

 

  5.63

 

4,730

 

502

 

    .47

 

  5.60

 

Total

 

$ 1,878,758

 

$ 1,890,181

 

$ 2,184,827

 

  4.48

 

  4.25

 

$ 1,884,439

 

$ 2,099,078

 

  4.51

 

  4.66

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·                  At June 30, 2010, the unrealized gains in the available for sale security portfolio were $70.3 million.

 

Deposits

 

Average Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 5  

 

 

 

 

 

 

 

 

Percent Change

 

 

 

 

 

 

 

($ in thousands)

 

2Q
2010

 

1Q
2010

 

2Q
2009

 

2Q10 vs
1Q10

 

2Q10 vs
2Q09

 

YTD
2010

 

YTD
2009

 

Percent
Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$  4,529,356

 

$  4,406,807

 

$  4,054,594

 

   2.8%

 

 11.7%

 

$  4,468,434

 

$  4,003,488

 

 11.6%

 

Savings

 

5,494,723

 

5,363,268

 

4,839,766

 

2.5

 

13.5  

 

5,429,359

 

4,330,255

 

25.4  

 

Money market

 

660,654

 

668,581

 

690,201

 

(1.2)

 

(4.3)

 

664,595

 

668,395

 

  (.6)

 

Subtotal

 

10,684,733

 

10,438,656

 

9,584,561

 

2.4

 

11.5  

 

10,562,388

 

9,002,138

 

17.3  

 

Certificates

 

1,044,008

 

1,127,149

 

2,087,490

 

(7.4)

 

(50.0)  

 

1,085,349

 

2,274,409

 

(52.3)  

 

Total deposits

 

$11,728,741

 

$11,565,805

 

$11,672,051

 

1.4

 

  .5

 

$11,647,737

 

$11,276,547

 

3.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average interest rate on deposits

 

.56

%

.62

%

1.15

%

 

 

 

 

.59

%

1.31

%

 

 

 

·                  Total average deposits in the second quarter of 2010 were $11.7 billion, up $56.7 million, or .5 percent, from the second quarter of 2009 and up $162.9 million, or 1.4 percent, from the first quarter of 2010.  Increases in average deposits in the quarter compared with the second quarter of 2009 and first quarter of 2010 were primarily due to strong growth in savings deposits resulting from several marketing initiatives, partially offset by declines in certificates of deposits resulting from pricing strategies to reduce higher cost funds.

 

·                  The average interest rate paid on deposits in the second quarter of 2010 was .56 percent, down 59 basis points from the second quarter of 2009 and down 6 basis points from the first quarter of 2010.  The average interest rate paid on deposits declined from the second quarter of 2009 due to pricing strategies on certain

 

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7

 

deposit products and mix changes.  The weighted average interest rate on deposits was .55 percent at June 30, 2010, compared with .58 percent at March 31, 2010.

 

Non-interest Expense

 

Non-interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 6  

 

 

 

 

 

 

 

 

Percent Change

 

 

 

 

 

 

 

($ in thousands)

 

2Q
2010

 

1Q
2010

 

2Q
2009

 

2Q10 vs
1Q10

 

2Q10 vs
2Q09

 

YTD
2010

 

YTD
2009

 

Percent
Change

 

Compensation and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

employee benefits

 

$  86,983

 

$  88,225

 

$  90,752

 

   (1.4)%

 

   (4.2)%

 

$175,208

 

$176,942

 

   (1.0)%

 

Occupancy and equipment

 

31,311

 

32,181

 

31,527

 

(2.7)

 

  (.7)

 

63,492

 

63,574

 

  (.1)

 

Deposit account premiums

 

5,478

 

6,798

 

7,287

 

(19.4)  

 

(24.8)  

 

12,276

 

13,863

 

(11.4)  

 

FDIC premiums

 

5,219

 

5,481

 

4,941

 

(4.8)

 

5.6

 

10,700

 

8,736

 

22.5  

 

Advertising and marketing

 

3,734

 

2,820

 

4,134

 

32.4  

 

(9.7)

 

6,554

 

8,579

 

(23.6)  

 

Other

 

35,053

 

34,410

 

36,080

 

1.9

 

(2.8)

 

69,463

 

67,889

 

2.3

 

Core operating expenses

 

167,778

 

169,915

 

174,721

 

(1.3)

 

(4.0)

 

337,693

 

339,583

 

  (.6)

 

Operating lease depreciation

 

9,812

 

10,040

 

3,860

 

(2.3)

 

154.2    

 

19,852

 

7,884

 

151.8    

 

Foreclosed real estate and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

repossessed assets, net

 

8,756

 

9,260

 

6,390

 

(5.4)

 

37.0  

 

18,016

 

10,888

 

65.5  

 

Other credit costs, net

 

2,723

 

2,587

 

3,213

 

5.3

 

(15.3)  

 

5,310

 

4,037

 

31.5  

 

FDIC special assessment

 

-

 

-

 

8,362

 

    -

 

(100.0)    

 

-

 

8,362

 

(100.0)    

 

Total non-interest expense

 

$189,069

 

$191,802

 

$196,546

 

(1.4)

 

(3.8)

 

$380,871

 

$370,754

 

2.7

 

 

N.M. = Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·                  Core operating expenses decreased $6.9 million, or 4 percent, from the second quarter of 2009. This reduction is net of a $4.8 million increase in core operating expense due to continued expansion of TCF Inventory Finance.

 

·                  Compensation and employee benefits costs were $87 million for the second quarter of 2010, down $3.8 million, or 4.2 percent, from the second quarter of 2009 and down $1.2 million, or 1.4 percent, from the first quarter of 2010. The decrease from the second quarter of 2009 was primarily due to headcount reductions in Retail Banking, partially offset by increased costs in the Specialty Finance businesses as a result of expansion and growth, and decreased employee medical plan expenses.

 

·                  Deposit account premiums were $5.5 million for the second quarter of 2010, down $1.8 million, or 24.8 percent, from the second quarter of 2009 and down $1.3 million, or 19.4 percent, from the first quarter of 2010.  The decrease in deposit account premiums from the second quarter of 2009 and the first quarter of 2010 was primarily due to lower new checking account production.

 

·                  Other non-interest expense was $35.1 million for the second quarter of 2010, down $1 million, or 2.8 percent, from the second quarter of 2009 and up $643 thousand, or 1.9 percent, from the first quarter of

 

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8

 

2010. The decrease from the second quarter of 2009 was primarily due to decreased deposit losses. The increase from the first quarter of 2010 was primarily attributable to increased business development and a seasonal increase in card processing expenses.

 

·                  Foreclosed real estate and repossessed asset expenses were $8.8 million for the second quarter of 2010, up $2.4 million, or 37 percent, from the second quarter of 2009 and down $504 thousand, or 5.4 percent, from the first quarter of 2010.  The increase from the second quarter of 2009 was primarily due to an increase in the number of properties owned and the associated expenses.

 

·                  In the second quarter of 2009, the FDIC charged banks a special assessment which totaled $8.4 million for TCF.

 

Credit Quality

 

 Credit Quality Summary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 7  

 

 

 

 

 

 

 

 

Percent Change

 

 

 

 

 

 

 

 ($ in thousands)

 

2Q
2010

 

1Q
2010

 

2Q
2009

 

2Q10 vs
1Q10

 

2Q10 vs
2Q09

 

YTD
2010

 

YTD
2009

 

Percent
Change

 

 Allowance for Loan and Lease Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Balance at beginning of period

 

$

250,430

 

$

244,471

 

$

181,216

 

 2.4%

 

 38.2%

 

$

244,471

 

$

172,442

 

 41.8%

 

 Charge-offs

 

(53,654

)

(50,551

)

(53,462

)

6.1

 

  .4

 

(104,205

)

(92,343

)

12.8  

 

 Recoveries

 

5,854

 

6,019

 

3,800

 

(2.7)

 

54.1  

 

11,873

 

7,743

 

53.3  

 

 Net charge-offs

 

(47,800

)

(44,532

)

(49,662

)

7.3

 

(3.7)

 

(92,332

)

(84,600

)

9.1

 

 Provision for credit losses

 

49,013

 

50,491

 

61,891

 

(2.9)

 

(20.8)  

 

99,504

 

105,603

 

(5.8)

 

 Balance at end of period

 

$

251,643

 

$

250,430

 

$

193,445

 

  .5

 

30.1  

 

$

251,643

 

$

193,445

 

30.1  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Allowance as a percentage of period end loans and leases

 

1.72

%

1.70

%

1.39

%

 

 

 

 

1.72

%

1.39

%

 

 

 Ratio of allowance to net charge-offs(1)

 

1.3

X

1.4

X

1.0

X

 

 

 

 

1.4

X

1.1

X

 

 

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

 

1.30

%

1.22

%

1.43

%

 

 

 

 

1.26

%

1.24

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Credit Loss Reserves

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Allowance for loan and lease losses

 

$

251,643

 

$

250,430

 

$

193,445

 

  .5

 

30.1  

 

 

 

 

 

 

 

 Reserves netted against portfolio asset balances

 

6,864

 

8,040

 

13,828

 

(14.6)  

 

(50.4)  

 

 

 

 

 

 

 

 Reserves for unfunded commitments

 

4,581

 

3,770

 

2,655

 

21.5  

 

72.5  

 

 

 

 

 

 

 

 Total credit loss reserves

 

$

263,088

 

$

262,240

 

$

209,928

 

  .3

 

25.3  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

1.80

%

1.78

%

1.50

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Non-accrual loans and leases

 

$

330,182

 

$

305,401

 

$

239,917

 

8.1

 

37.6  

 

 

 

 

 

 

 

 Real estate owned

 

117,931

 

101,436

 

96,862

 

16.3  

 

21.8  

 

 

 

 

 

 

 

 Total non-performing assets

 

$

448,113

 

$

406,837

 

$

336,779

 

10.1  

 

33.1  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Non-performing assets as a percentage of loans and leases and real estate owned

 

3.04

%

2.75

%

2.40

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Accruing consumer real estate restructured loans

 

$

297,083

 

$

285,606

 

$

51,483

 

   4.0%

 

N.M.  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 N.M. = Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (1) Annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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9

 

 

At June 30, 2010:

 

·                  Allowance for loan and lease losses was $251.6 million, or 1.72 percent of loans and leases, compared with $193.4 million, or 1.39 percent, at June 30, 2009 and $250.4 million, or 1.70 percent, at March 31, 2010.

 

·                  Over 60-day delinquency rate was .87 percent, up from .72 percent at June 30, 2009 and up from .82 percent at March 31, 2010, primarily due to increases in commercial and consumer real estate loan delinquencies, partially offset by decreased delinquencies in the leasing and equipment finance businesses.

 

·                  Non-accrual loans and leases increased $24.8 million, or 8.1 percent, from March 31, 2010, primarily due to a small number of commercial real estate loans migrating to non-accrual status, partially offset by decreases in leasing and equipment finance non-accrual balances.  Non-accrual loans and leases increased $90.3 million, or 37.6 percent, from June 30, 2009.

 

·                  At June 30, 2010, total accruing restructured loans were $297.1 million, up $11.5 million from March 31, 2010 and up $245.6 million from June 30, 2009. Reserves for losses on accruing consumer real estate restructured loans were $32.9 million, or 11.1 percent of the outstanding balance at June 30, 2010.  The over 60-day delinquency rate on these restructured loans was 4.3 percent at June 30, 2010.

 

For the quarter ended June 30, 2010:

 

·                  Provision for credit losses was $49 million, down from $61.9 million in the second quarter of 2009 and down slightly from $50.5 million recorded in the first quarter of 2010. The decrease from the second quarter of 2009 was primarily due to decreased reserves for restructured consumer real estate loans and lower levels of provision in excess of net charge-offs in the consumer real estate portfolio as the rate of increase in losses slowed.

 

·                  Net loan and lease charge-offs were $47.8 million, or 1.30 percent annualized, of average loans and leases, down from $49.7 million, or 1.43 percent annualized, of average loans and leases in the second quarter of 2009 and up from $44.5 million, or 1.22 percent annualized, of average loans and leases in the first quarter of 2010. Decreases over the second quarter of 2009 were primarily due to decreases in commercial real

 

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10

 

estate net charge-offs, partially offset by increases in consumer real estate net charge-offs.  The increase from the first quarter of 2010 was the result of increases in commercial real estate net charge-offs.

 

Income Taxes

 

·                  Income tax expense was $28.1 million for the second quarter of 2010, or 37.8 percent of pre-tax income, compared with $14.9 million, or 38.7 percent of pre-tax income, for the comparable 2009 period and $20.8 million, or 37.8 percent of pre-tax income, for the first quarter of 2010.

 

Capital and Liquidity

 

Capital Information

 

 

 

 

 

Table 8  

At period end

 

 

 

 

 

 

 

($ in thousands, except per-share data)

 

2Q
2010

 

4Q
2009

 

Total equity

 

  $1,474,536

 

 

 

  $1,179,755

 

 

 

Total equity to total assets

 

8.18

%

 

 

6.60

%

 

 

Book value per common share

 

$       10.28

 

 

 

$         9.10

 

 

 

Tangible realized common equity to tangible assets(1)

 

7.18

%

 

 

5.86

%

 

 

 

 

 

 

 

 

 

 

 

 

Risk-based capital

 

 

 

 

 

 

 

 

 

Tier 1

 

  $1,412,627

 

10.30%

 

  $1,161,750

 

8.52%

 

Total

 

1,742,705

 

12.71   

 

1,514,940

 

11.12   

 

Excess over stated “10% well-capitalized” requirement

 

371,354

 

2.71   

 

152,153

 

1.12   

 

 

 

 

 

 

 

 

 

 

 

Tier 1 common capital

 

  $1,286,024

 

9.38   

 

  $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).

 

 

·                  Total risk-based capital at June 30, 2010 of $1.7 billion, or 12.71 percent of risk-weighted assets, was $371.4 million in excess of the stated “10 percent well-capitalized” requirement.

 

·                  Tier 1 common capital at June 30, 2010 was $1.3 billion, or 9.38 percent of risk-weighted assets.

 

·                  At June 30, 2010, TCF had $2.2 billion in unused, secured borrowing capacity at the FHLB of Des Moines and $591 million in unused, secured borrowing capacity at the Federal Reserve Discount Window.

 

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11

 

Website Information

 

A live webcast of TCF’s conference call to discuss second quarter earnings will be hosted at TCF’s website, http://ir.tcfbank.com, on July 15, 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 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.

 

 

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12

 

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,  the economic impact on banks of the Emergency Economic Stabilization Act of 2008, as amended (“EESA”), and regulatory reform legislation; the impact of financial regulatory reform proposals, including possible phase out of trust preferred securities in Tier 1 capital, or 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 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 bureau 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 or imposition of underwriting or other limitations that impact the ability to use certain variable-rate products; 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 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.

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13

 

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.

 

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.

 

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14

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

 

 

 

Three Months Ended

 

 

 

 

 

 

 

June 30,

 

Change

 

 

 

2010

 

2009

 

$

 

%

 

Interest income:

 

 

 

 

 

 

 

 

 

Loans and leases

 

$

221,913

 

$

215,400

 

$

6,513

 

3.0

%

Securities available for sale

 

21,065

 

23,217

 

(2,152)

 

(9.3)

 

Investments and other

 

1,236

 

1,137

 

99

 

8.7

 

Total interest income

 

244,214

 

239,754

 

4,460

 

1.9

 

Interest expense:

 

 

 

 

 

 

 

 

 

Deposits

 

16,281

 

33,345

 

(17,064)

 

(51.2)

 

Borrowings

 

51,434

 

49,946

 

1,488

 

3.0

 

Total interest expense

 

67,715

 

83,291

 

(15,576)

 

(18.7)

 

Net interest income

 

176,499

 

156,463

 

20,036

 

12.8

 

Provision for credit losses

 

49,013

 

61,891

 

(12,878)

 

(20.8)

 

Net interest income after provision for
credit losses

 

127,486

 

94,572

 

32,914

 

34.8

 

Non-interest income:

 

 

 

 

 

 

 

 

 

Fees and service charges

 

77,845

 

77,536

 

309

 

.4

 

Card revenue

 

28,591

 

26,604

 

1,987

 

7.5

 

ATM revenue

 

7,844

 

7,973

 

(129)

 

(1.6)

 

Subtotal

 

114,280

 

112,113

 

2,167

 

1.9

 

Leasing and equipment finance

 

20,528

 

16,881

 

3,647

 

21.6

 

Other

 

1,235

 

820

 

415

 

50.6

 

Fees and other revenue

 

136,043

 

129,814

 

6,229

 

4.8

 

Gains (losses) on securities, net

 

(137)

 

10,556

 

(10,693)

 

N.M.

 

Total non-interest income

 

135,906

 

140,370

 

(4,464)

 

(3.2)

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

86,983

 

90,752

 

(3,769)

 

(4.2)

 

Occupancy and equipment

 

31,311

 

31,527

 

(216)

 

(.7)

 

Deposit account premiums

 

5,478

 

7,287

 

(1,809)

 

(24.8)

 

FDIC premiums

 

5,219

 

4,941

 

278

 

5.6

 

Advertising and marketing

 

3,734

 

4,134

 

(400)

 

(9.7)

 

Other

 

35,053

 

36,080

 

(1,027)

 

(2.8)

 

Subtotal

 

167,778

 

174,721

 

(6,943)

 

(4.0)

 

Operating lease depreciation

 

9,812

 

3,860

 

5,952

 

154.2

 

Foreclosed real estate and repossessed assets, net

 

8,756

 

6,390

 

2,366

 

37.0

 

Other credit costs, net

 

2,723

 

3,213

 

(490)

 

(15.3)

 

FDIC special assessment

 

-

 

8,362

 

(8,362)

 

(100.0)

 

Total non-interest expense

 

189,069

 

196,546

 

(7,477)

 

(3.8)

 

Income before income tax expense

 

74,323

 

38,396

 

35,927

 

93.6

 

Income tax expense

 

28,112

 

14,853

 

13,259

 

89.3

 

Income after income tax expense

 

46,211

 

23,543

 

22,668

 

96.3

 

Income attributable to non-controlling interest

 

1,186

 

-

 

1,186

 

N.M.

 

Net income

 

45,025

 

23,543

 

21,482

 

91.2

 

Preferred stock dividends

 

-

 

1,193

 

(1,193)

 

(100.0)

 

Non-cash deemed preferred stock dividend

 

-

 

12,025

 

(12,025)

 

(100.0)

 

Net income available to common stockholders

 

$

45,025

 

$

10,325

 

$

34,700

 

N.M.

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

Basic

 

$

.32

 

$

.08

 

$

.24

 

N.M.

 

Diluted

 

.32

 

.08

 

.24

 

N.M.

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

.05

 

$

.05

 

$

-

 

-

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Basic

 

140,352

 

126,449

 

13,903

 

11.0

 

Diluted

 

140,633

 

126,449

 

14,184

 

11.2

 

 

 

 

 

 

 

 

 

 

 

N.M. Not meaningful.

 

 

 

 

 

 

 

 

 

-more-

 


 

15

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

 

 

 

Six Months Ended

 

 

 

 

 

 

 

June 30,

 

Change

 

 

 

2010

 

2009

 

$

 

%

 

Interest income:

 

 

 

 

 

 

 

 

 

Loans and leases

 

$

443,177

 

$

424,777

 

$

18,400

 

4.3

%

Securities available for sale

 

42,472

 

48,918

 

(6,446)

 

(13.2)

 

Investments and other

 

2,377

 

1,993

 

384

 

19.3

 

Total interest income

 

488,026

 

475,688

 

12,338

 

2.6

 

Interest expense:

 

 

 

 

 

 

 

 

 

Deposits

 

33,885

 

73,429

 

(39,544)

 

(53.9)

 

Borrowings

 

102,980

 

100,383

 

2,597

 

2.6

 

Total interest expense

 

136,865

 

173,812

 

(36,947)

 

(21.3)

 

Net interest income

 

351,161

 

301,876

 

49,285

 

16.3

 

Provision for credit losses

 

99,504

 

105,603

 

(6,099)

 

(5.8)

 

Net interest income after provision for

 

 

 

 

 

 

 

 

 

credit losses

 

251,657

 

196,273

 

55,384

 

28.2

 

Non-interest income:

 

 

 

 

 

 

 

 

 

Fees and service charges

 

144,017

 

134,600

 

9,417

 

7.0

 

Card revenue

 

55,663

 

51,564

 

4,099

 

7.9

 

ATM revenue

 

14,866

 

15,571

 

(705)

 

(4.5)

 

Subtotal

 

214,546

 

201,735

 

12,811

 

6.4

 

Leasing and equipment finance

 

40,880

 

29,532

 

11,348

 

38.4

 

Other

 

3,690

 

1,278

 

2,412

 

188.7

 

Fees and other revenue

 

259,116

 

232,545

 

26,571

 

11.4

 

Gains (losses) on securities, net

 

(567)

 

22,104

 

(22,671)

 

N.M.

 

Total non-interest income

 

258,549

 

254,649

 

3,900

 

1.5

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

175,208

 

176,942

 

(1,734)

 

(1.0)

 

Occupancy and equipment

 

63,492

 

63,574

 

(82)

 

(.1)

 

Deposit account premiums

 

12,276

 

13,863

 

(1,587)

 

(11.4)

 

FDIC premiums

 

10,700

 

8,736

 

1,964

 

22.5

 

Advertising and marketing

 

6,554

 

8,579

 

(2,025)

 

(23.6)

 

Other

 

69,463

 

67,889

 

1,574

 

2.3

 

Subtotal

 

337,693

 

339,583

 

(1,890)

 

(.6)

 

Operating lease depreciation

 

19,852

 

7,884

 

11,968

 

151.8

 

Foreclosed real estate and repossessed assets, net

 

18,016

 

10,888

 

7,128

 

65.5

 

Other credit costs, net

 

5,310

 

4,037

 

1,273

 

31.5

 

FDIC special assessment

 

-

 

8,362

 

(8,362)

 

(100.0)

 

Total non-interest expense

 

380,871

 

370,754

 

10,117

 

2.7

 

Income before income tax expense

 

129,335

 

80,168

 

49,167

 

61.3

 

Income tax expense

 

48,902

 

29,978

 

18,924

 

63.1

 

Income after income tax expense

 

80,433

 

50,190

 

30,243

 

60.3

 

Income attributable to non-controlling interest

 

1,487

 

-

 

1,487

 

N.M.

 

Net income

 

78,946

 

50,190

 

28,756

 

57.3

 

Preferred stock dividends

 

-

 

6,378

 

(6,378)

 

(100.0)

 

Non-cash deemed preferred stock dividend

 

-

 

12,025

 

(12,025)

 

(100.0)

 

Net income available to common stockholders

 

$

78,946

 

$

31,787

 

$

47,159

 

148.4

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

Basic

 

$

.58

 

$

.25

 

$

.33

 

132.0

 

Diluted

 

.58

 

.25

 

.33

 

132.0

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

.10

 

$

.30

 

$

(.20)

 

(66.7)

 

 

 

 

 

 

 

 

 

 

 

Average common and common equivalent

 

 

 

 

 

 

 

 

 

shares outstanding (in thousands):

 

 

 

 

 

 

 

 

 

Basic

 

136,370

 

126,196

 

10,174

 

8.1

 

Diluted

 

136,524

 

126,196

 

10,328

 

8.2

 

 

 

 

 

 

 

 

 

 

 

N.M. Not meaningful.

 

 

 

 

 

 

 

 

 

 

-more-


 

16

 

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in thousands, except per-share data)

(Unaudited)

 

 

 

At

 

At

 

At

 

% Change From

 

 

 

June 30,

 

December 31,

 

June 30,

 

December 31,

 

June 30,

 

 

 

2010

 

2009

 

2009

 

2009

 

2009

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

387,675

 

$

299,127

 

$

431,328

 

29.6

%

(10.1)

%

Investments

 

159,576

 

163,692

 

166,770

 

(2.5)

 

(4.3)

 

Securities available for sale

 

1,940,331

 

1,910,476

 

2,087,406

 

1.6

 

(7.0)

 

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

Consumer real estate and other

 

7,289,499

 

7,331,991

 

7,340,124

 

(.6)

 

(.7)

 

Commercial real estate

 

3,341,155