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Section 1: 8-K (8-K)

Document
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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 27, 2020
 404754962_tcf063020form8k01.jpg
 
TCF FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
Michigan
000-08185
38-2022454
(State or other jurisdiction of
incorporation)
(Commission File Number)
(IRS Employer Identification No.)
 
333 W. Fort Street, Suite 1800, Detroit, Michigan 48226
(Address of principal executive offices, including Zip Code)
 
(800) 867-9757
(Registrant’s telephone number, including area code)
  
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
(Title of each class)
(Trading Symbol(s))
(Name of exchange on which registered)
Common Stock (par value $1 per share)
TCF
The NASDAQ Stock Market
Depositary shares, each representing a 1/1000th interest in a share of the 5.70% Series C Non-Cumulative Perpetual Preferred Stock
TCFCP
The NASDAQ Stock Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.





Item 2.02 Results of Operations and Financial Condition.
 
The following information, including Exhibit 99.1, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall such information and Exhibit be deemed incorporated by reference in any filing under the Securities Act of 1933, except as may be expressly set forth by specific reference in such a filing.

TCF Financial Corporation (the "Corporation") issued an earnings press release dated July 27, 2020, attached to this Form 8-K as Exhibit 99.1, announcing its results of operations for the quarter ended June 30, 2020.

The earnings press release is also available on the Investor Relations section of the Corporation’s website at http://ir.tcfbank.com. The 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 Corporation.


Item 7.01 Regulation FD Disclosure.

Information is being furnished herein in Exhibit 99.2 with respect to the slide presentation prepared for use with the earnings press release. This information includes selected financial and operational information through the second quarter of 2020 and does not represent a complete set of financial statements and related notes prepared in conformity with generally accepted accounting principles ("GAAP"). Most, but not all, of the selected financial information furnished herein is derived from the Corporation’s consolidated financial statements and related notes prepared in accordance with GAAP and management’s discussion and analysis of financial condition and results of operations included in the Corporation’s reports on Forms 10-K and 10-Q. The Corporation’s annual financial statements are subject to independent audit. These materials are dated July 27, 2020 and TCF does not undertake to update the materials after that date.

The presentation is also available on the Investor Relations section of the Corporation’s website at http://ir.tcfbank.com. The 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 Corporation.

Information contained herein, including Exhibit 99.2, shall not be deemed filed for the purposes of the Securities Exchange Act of 1934, nor shall such information and Exhibit be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.
 
(d)         Exhibits.
Exhibit No.
Description
99.1
99.2
104
Interactive Data File






SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
TCF FINANCIAL CORPORATION
 
 
 
 
 
/s/ Craig R. Dahl
 
Craig R. Dahl, 
Chief Executive Officer and President  
(Principal Executive Officer)
 
 
 
 
 
/s/ Dennis L. Klaeser
 
Dennis L. Klaeser, 
Executive Vice President and Chief Financial Officer 
(Principal Financial Officer)
 
 
 
 
 
/s/ Kathleen S. Wendt
 
Kathleen S. Wendt, 
Executive Vice President and Chief Accounting Officer 
(Principal Accounting Officer)
 
Dated:  July 27, 2020



(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit


Exhibit 99.1
404754962_tcf063020form8kimagea01.jpg
NEWS RELEASE
 
TCF Financial Corporation • 333 West Fort Street, Suite 1800 • Detroit, MI 48226
 
FOR IMMEDIATE RELEASE
Contact:
 
 
 
 
  Randi Berris
(248) 608-5239
(Media)
 
 Timothy Sedabres
(952) 745-2766
(Investors)
 
 
 
 
 
 
TCF REPORTS SECOND QUARTER 2020 RESULTS
TCF also announces quarterly cash dividends on common and preferred stock

Second Quarter 2020 Highlights
Quarterly net income of $23.8 million, or $0.14 per diluted share, down 54.2% from the first quarter of 2020
Adjusted diluted earnings per common share of $0.54(1), down 5.3% from the first quarter of 2020. Adjusted diluted earnings per common share excludes $61.1 million, or $0.40 per share, after-tax impact of merger-related expenses and notable items
Assisted customers via COVID-19-related loan and lease deferrals with $1.8 billion of balances on deferral status as of June 30, 2020 ($1.5 billion of commercial balances and $327.1 million of consumer balances)
Assisted business and commercial customers via $1.9 billion of total loans funded through the Paycheck Protection Program ("PPP")
Completed the sale of seven Arizona branches resulting in a gain on sale of $14.7 million
Loan and lease balances declined 1.1% from March 31, 2020, primarily due to declines in the commercial and industrial and residential mortgage portfolios, partially offset by the addition of $1.8 billion of Paycheck Protection Program ("PPP") loans
Deposit growth of 9.5% compared to March 31, 2020
Net charge-offs of $3.4 million, or 0.04% of average loans and leases (annualized)
Provision for credit losses of $78.7 million, down 18.8% from the first quarter of 2020
Efficiency ratio of 78.26%, up 869 basis points from the first quarter of 2020. Adjusted efficiency ratio of 59.80%(1), up 156 basis points from the first quarter of 2020
Common equity Tier 1 capital ratio of 11.09%, compared to 10.44% at March 31, 2020
Declared quarterly cash dividends on common stock of $0.35 per share payable on September 1, 2020

Merger-related Expenses and Notable items in the Second Quarter of 2020 and First Quarter of 2020(1) 
Pre-tax merger-related expenses of $81.6 million, $64.6 million net of tax, or $0.42 per diluted common share for the second quarter of 2020, compared to pre-tax merger-related expenses of $36.7 million, $29.0 million net of tax, or $0.19 per diluted common share for the first quarter of 2020
Pre-tax income, net of expenses, of $4.4 million, $3.5 million net of tax, or $0.02 per diluted common share related to notable items for the second quarter of 2020, compared to pre-tax net expenses of $11.3 million, $8.9 million net of tax, or $0.06 per diluted common share related to notable items for the first quarter of 2020, see summary of notable items adjustments below

(1)
Denotes a non-GAAP financial measure. See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables and the following table detailing merger-related expenses and notable items.


1



Note: TCF’s financial results for periods ended prior to August 1, 2019 reflect Legacy TCF financial results only on a standalone basis. For the third quarter 2019, TCF’s reported financial results reflect Legacy TCF financial results for the period before August 1, 2019 and the post-merger combined TCF financial results on and after August 1, 2019. The number of shares issued and outstanding, earnings per share, additional paid-in-capital, dividends paid and all references to share quantities of TCF have been retrospectively restated to reflect the equivalent number of shares issued in the Merger as the Merger was treated as a reverse merger.
Summary of Financial Results(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
At or For the Quarter Ended
 
Change From
 
Jun. 30,
 
Mar. 31,
 
Dec. 31,
 
Sep. 30,
 
Jun. 30,
 
Mar. 31,
Jun. 30,
(Dollars in thousands, except per share data)
2020
 
2020
 
2019
 
2019
 
2019
 
2020
2019
Financial Results
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to TCF
$
23,764

 
$
51,899

 
$112,399
 
$
22,148

 
$
90,427

 
(54.2
)
%
(73.7
)
%
Net interest income
378,359

 
401,481

 
408,753

 
371,793

 
254,057

 
(5.8
)
 
48.9

 
Basic earnings per common share
$
0.14

 
$
0.33

 
$
0.72

 
$
0.15

 
$
1.07

 
(57.6
)
 
(86.9
)
 
Diluted earnings per common share
0.14

 
0.32

 
0.72

 
0.15

 
1.07

 
(56.3
)
 
(86.9
)
 
Return on average assets ("ROAA")(3)
0.21
%
 
0.46
%
 
0.99
%
 
0.26
%
 
1.54
%
 
(25
)
bps
(133
)
bps
ROACE(3)
1.56

 
3.64

 
8.00

 
1.75

 
14.27

 
(208
)
 
(1,271
)
 
ROATCE (non-GAAP)(2)(3)
2.57

 
5.42

 
11.35

 
2.68

 
15.46

 
(285
)
 
(1,289
)
 
Net interest margin
3.33

 
3.73

 
3.86

 
4.12

 
4.46

 
(40
)
 
(113
)
 
Net interest margin (FTE)(2)(3)
3.35

 
3.76

 
3.89

 
4.14

 
4.49

 
(41
)
 
(114
)
 
Net charge-offs as a percentage of average loans and leases(3)
0.04

 
0.06

 
0.07

 
0.39

 
0.29

 
(2
)
 
(25
)
 
Nonperforming assets as a percentage of total loans and leases and other real estate owned(4)
0.94

 
0.80

 
0.59

 
0.62

 
0.62

 
14

 
32

 
Efficiency ratio
78.26

 
69.57

 
73.49

 
91.32

 
65.11

 
869

 
1,315

 
Adjusted Financial Results (non-GAAP)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted net income attributable to TCF(2)
$
84,862

 
$
89,855

 
$161,581
 
$128,301
 
$
93,650

 
(5.6
)
%
(9.4
)
%
Adjusted diluted earnings per common
share(2)
$
0.54

 
$
0.57

 
$
1.04

 
$
0.98

 
$
1.11

 
(5.3
)
 
(51.4
)
 
Adjusted ROAA(2)(3)
0.70
%
 
0.78
%
 
1.42
%
 
1.34
%
 
1.59
%
 
(8
)
bps
(89
)
bps
Adjusted ROACE(2)(3)
6.03

 
6.43

 
11.57

 
11.21

 
14.79

 
(40
)
 
(876
)
 
Adjusted ROATCE(2)(3)
8.70

 
9.24

 
16.25

 
14.96

 
16.02

 
(54
)
 
(732
)
 
Adjusted efficiency ratio(2)
59.80

 
58.24

 
58.51

 
58.74

 
61.48

 
156

 
(168
)
 
N.M. Not meaningful
(1)
Financial results for any periods ended prior to August 1, 2019 reflect Legacy TCF financials on a standalone basis. Certain reclassifications have been made to prior period financial information to conform to the current period presentation.
(2)
Denotes a non-GAAP financial measure. See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables.
(3)
Annualized.
(4)
Prior to the adoption of CECL as of January 1, 2020, purchased credit impaired loans were not classified as nonaccrual loans because they were recorded at their net realizable value based on the principal and interest expected to be collected on the loans. At January 1, 2020, $73.4 million of previous purchased credit impaired loans were reclassified to nonaccrual loans as a result of the adoption of CECL.


2



The following table includes merger-related expenses and notable items used to arrive at adjusted net income in the Adjusted Financial Results (non-GAAP) (see Reconciliation of Non-GAAP Financial Measures).
 
For the Quarter Ended June 30, 2020
 
For the Quarter Ended March 31, 2020
(Dollars in thousands, except per share data)
Pre-tax income (loss)
 
After-tax benefit (loss)(1)
 
Per Share
 
Pre-tax income (loss)
 
After-tax benefit (loss)(1)
 
Per Share
Merger-related expenses
$
(81,619
)
 
$
(64,585
)
 
$
(0.42
)
 
$
(36,728
)
 
(29,026
)
 
$
(0.19
)
Notable items:
 
 
 
 
 
 
 
 
 
 
 
Expenses related to the sale of Legacy TCF auto finance portfolio(2)
(901
)
 
(713
)
 

 
(3,063
)
 
(2,421
)
 
(0.02
)
Branch sales and exit costs, net(3)
14,166

 
11,210

 
0.07

 

 

 

Loan servicing rights impairment(4)
(8,858
)
 
(7,009
)
 
(0.05
)
 
(8,236
)
 
(6,509
)
 
(0.04
)
Total notable items
4,407

 
3,488

 
0.02

 
(11,299
)
 
(8,930
)
 
(0.06
)
Total merger-related and notable items
$
(77,212
)
 
$
(61,097
)
 
$
(0.40
)
 
$
(48,027
)
 
$
(37,956
)
 
$
(0.25
)
(1)
Net of tax benefit at our normal tax rate and other tax benefits.
(2)
Second quarter of 2020 included within other noninterest expense ($0.8 million) and compensation and employee benefits ($0.1 million). First quarter of 2020 included within occupancy and equipment ($1.6 million), compensation and employee benefits ($0.9 million) and other noninterest expense ($0.6 million).
(3)
Included within other noninterest income ($14.7 million net gain) and other noninterest expense ($0.6 million).
(4)
Included within other noninterest income.

DETROIT (July 27, 2020) - TCF Financial Corporation ("TCF" or the "Corporation") (NASDAQ: TCF) today reported net income of $23.8 million, or diluted earnings per common share of $0.14, for the second quarter of 2020, compared with $51.9 million, or diluted earnings per common share of $0.32, for the first quarter of 2020. Adjusted net income was $84.9 million, or $0.54 per diluted common share for the second quarter of 2020, compared with $89.9 million, or $0.57 per diluted common share, for the first quarter of 2020 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).

"During the second quarter, we continued to demonstrate the resiliency and strength of TCF during this period of economic uncertainty, low interest rates, and global pandemic,” said Craig R. Dahl, president and chief executive officer. “Our focus remains on ensuring the safety and well-being of our team members, and the financial well-being of our customers and our communities. We continued to forge ahead with our integration activities during the quarter and we remain on track for the on-time completion of our integration program during the third quarter. We remain confident in our ability to deliver on the cost synergies we committed to for the fourth quarter of this year.
 
“We have been active in supporting small businesses in our communities by funding $1.9 billion of loans through the PPP. We have also extended loan and lease deferrals to provide financial relief to our commercial and consumer customers, while continuing to support the broader financial needs of our customers.

“We believe TCF is well positioned with strong capital levels and substantial liquidity as we face a low interest rate environment and uncertain economic outlook. Our lending portfolios also benefit from diversification across both geographies and asset classes.

“Our team members are working extremely hard to ensure we support our customers in this current economic environment, while delivering on our commitment to being a premier Midwest bank with the size and scale to compete and win in our markets.”

3



Net Interest Income and Net Interest Margin
Net interest income was $378.4 million for the second quarter of 2020, a decrease of $23.1 million, or 5.8%, from the first quarter of 2020. Purchase accounting accretion and amortization included in net interest income was $18.2 million for the second quarter of 2020, compared to $25.3 million for the first quarter of 2020. Adjusted net interest income, excluding purchase accounting accretion and amortization, was $360.2 million for the second quarter of 2020, compared to $376.2 million for the first quarter of 2020, a non-GAAP financial measure. Additionally, second quarter 2020 net interest income recorded included $9.6 million of interest income from PPP less funding costs. Adjusted net interest income, excluding purchase accounting accretion and amortization and the impact from PPP loans, was $350.6 million for the second quarter of 2020, a non-GAAP financial measure. Net interest margin was 3.33% for the second quarter of 2020, compared to 3.73% in the first quarter of 2020, while net interest margin on a fully tax-equivalent basis (FTE) was 3.35%, down 41 basis points from the first quarter of 2020. The decrease in net interest margin from the first quarter of 2020 was additionally driven by the full quarter impact of the Federal Reserve's rate cuts, a decrease in the benefit provided by purchase accounting accretion and amortization and higher average cash balances, partially offset by lower cost of funds. Adjusted net interest margin FTE, excluding purchase accounting accretion and amortization and the impact of PPP loans, was 3.20% in the second quarter of 2020, compared to 3.53% in the first quarter of 2020, a non-GAAP financial measure. See the "Reconciliation of GAAP to Non-GAAP Financial Measures" tables for reconciliations of our noted non-GAAP measures.

Noninterest Income
Noninterest income was $133.1 million for the second quarter of 2020, a decrease of $3.9 million, or 2.9%, from the first quarter of 2020. Noninterest income for the second quarter of 2020 included notable items of a $14.7 million gain on the sale of our Arizona branches and an $8.9 million loan servicing rights impairment, both included in other noninterest income. Noninterest income for the first quarter of 2020 included an $8.2 million loan servicing rights impairment, a notable item, included in other noninterest income. Adjusted noninterest income for the second quarter of 2020 was $127.2 million, compared to $145.2 million in the first quarter of 2020 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables). The second quarter of 2020, compared to the first quarter of 2020, also included increases of $8.4 million in net gains on sales of loans and leases and $3.6 million in leasing revenue, which were offset by decreases of $11.8 million and $1.0 million in fee and service charges on deposit accounts and card and ATM revenue, respectively, and a decrease of $0.4 million of favorable interest rate swap mark-to-market adjustment resulting from changes in the interest rate environment, included in other noninterest income.


4



Noninterest Expense
Noninterest expense was $400.2 million for the second quarter of 2020, an increase of $25.6 million, or 6.8%, from the first quarter of 2020. The second quarter of 2020 included $81.6 million of merger-related expenses, compared to $36.7 million for the first quarter of 2020. Noninterest expense for the second quarter of 2020 also included $0.9 million of expense related to the sale of the Legacy TCF auto finance portfolio ($0.8 million in other noninterest expense and $0.1 million in compensation and employee benefits) and $0.6 million of expense related to branch exit costs, included in other noninterest expense considered notable items. Noninterest expense for the first quarter of 2020 also included $3.1 million of expense related to the sale of the Legacy TCF auto finance portfolio ($1.6 million in occupancy and equipment expense, $0.9 million in compensation and employee benefits and $0.6 million in other noninterest expense) considered a notable item. Excluding merger-related expenses and notable items, adjusted noninterest expense was $317.2 million for the second quarter of 2020, compared to $334.8 million for the first quarter of 2020 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables). The second quarter of 2020 also included $0.2 million of federal historic tax credit amortization, included in other noninterest expense, compared to $1.5 million in the first quarter of 2020.

Income Tax Expense
Income tax expense for the second quarter of 2020 was $6.2 million, an effective tax rate of 19.1%, compared to $13.1 million, an effective tax rate of 19.6% for the first quarter of 2020. The $6.9 million, or 52.5%, decrease in income tax expense was primarily driven by lower pre-tax income.

Credit Quality
Provision for credit losses Provision for credit losses was $78.7 million for the second quarter of 2020, a decrease of $18.2 million, from the first quarter of 2020. The provision for credit losses is comprised of $58.1 million for the provision for credit losses related to loans and leases and $20.6 million for the provision for credit losses related to unfunded lending commitments in the second quarter of 2020, compared to $93.0 million for the provision for credit losses related to loans and leases and $4.0 million for the provision for credit losses related to unfunded lending commitments in the first quarter of 2020. The decrease in provision for credit losses related to loans and leases from the first quarter of 2020 was primarily due to a decrease in loan originations, excluding PPP loans which are individually guaranteed by the Small Business Administration and therefore the accounting under CECL does not require reserves to be recorded on such loans, partially offset by the economic downturn related to COVID-19. The increase in provision for credit losses related to unfunded lending commitments from the first quarter of 2020 was primarily due to the economic downturn related to COVID-19 and a decrease in line utilization.


5



Net charge-off rate The annualized net charge-offs as a percentage of average loans and leases was 0.04% for the second quarter of 2020, down 2 basis points from the first quarter of 2020.

Allowance for Credit Losses Allowance for credit losses includes both the allowance for loan and lease losses, which is presented separately on the Consolidated Statements of Financial Condition, and the reserve for unfunded lending commitments, which is included in other liabilities on the Consolidated Statements of Financial Condition. Allowance for credit losses was $503.9 million, or 1.42% of total loans and leases, at June 30, 2020, up from $428.6 million, or 1.19%, at March 31, 2020. The allowance for credit losses as a percentage of total loans and leases, excluding PPP loans was 1.49% (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables). The PPP loans are individually guaranteed by the Small Business Administration and therefore the accounting under CECL does not require reserves to be recorded on such loans. The increase from March 31, 2020 was primarily due to further deterioration in economic outlook as a result of the impact of COVID-19.

Nonaccrual loans and leases Nonaccrual loans and leases were $291.5 million at June 30, 2020 and represented 0.82% of total loans and leases, compared to $250.5 million, or 0.70% of total loans and leases, at March 31, 2020. The $41.0 million increase in nonaccrual loans and leases from March 31, 2020 included increases within each of our loan and lease portfolios.

Balance Sheet
Loans and leases Loans and leases were $35.5 billion at June 30, 2020, a decrease of $0.4 billion, or 1.1%, compared to $35.9 billion at March 31, 2020. The decrease was primarily due to a decline in the commercial and industrial portfolio, primarily inventory finance related to seasonality, strong dealer activity and the lack of backfill from manufacturers as a result of the economic shutdown, in addition to a decline in the residential mortgage portfolio, partially offset by the addition of PPP loans. As of June 30, 2020 we had $1.8 billion of PPP loans outstanding, all included in our commercial and industrial loans.

Investment securities The investment securities portfolio was $7.3 billion at June 30, 2020, an increase of $188.6 million, or 2.6%, compared to $7.2 billion at March 31, 2020. The increase from March 31, 2020 was primarily due to purchases of residential agency mortgage-backed securities.

Deposits Deposits were $39.2 billion at June 30, 2020, an increase of $3.4 billion, or 9.5%, compared to $35.8 billion at March 31, 2020. The increase from March 31, 2020 was primarily due to increases in noninterest-bearing deposits of $2.2 billion, savings account balances of $606.5 million, money market deposits of $478.9 million and checking deposit account balances of $404.0 million, reflecting lower consumer spending.


6



Capital The common equity Tier 1 capital ratio was 11.09% at June 30, 2020, compared to 10.44% at March 31, 2020. Our capital ratios reflect our election of the five-year CECL transition for regulatory capital purposes.

In response to the COVID-19 pandemic, TCF temporarily suspended buybacks under its share repurchase program, but retains the ability to resume as circumstances warrant. TCF is well positioned with strong capital and liquidity and is committed to supporting our customers, team members and communities.

TCF's board of directors also declared a regular quarterly cash dividend of $0.35 per common share payable on September 1, 2020 to shareholders of record at the close of business on August 14, 2020. In addition, the board of directors declared a quarterly cash dividend of $0.35625 per depositary share payable on September 1, 2020 to shareholders of record of the depositary shares, representing a 1/1,000th interest in a share of the 5.70% Series C Non-Cumulative Perpetual Preferred Stock, at the close of business on August 14, 2020.

Conference Call Details TCF will host a conference call to discuss second quarter 2020 results on Tuesday, July 28, 2020 at 10:00 a.m. Eastern Time. The conference call will be available via a live webcast on the Investor Relations section of TCF's website, ir.tcfbank.com, and archived for replay. The conference call can also be accessed by dialing (844) 512-2926 and entering access code 2542421. To listen to the replay via phone, please dial (877) 344-7529 and enter access code 10145803. The replay begins approximately one hour after the call is completed on Tuesday, July 28, 2020 and will be available through Tuesday, August 4, 2020.

 
 
 
 
 
TCF Financial Corporation (NASDAQ: TCF) is a Detroit, Michigan-based financial holding company with $50 billion in total assets at June 30, 2020 and a top 10 deposit market share in the Midwest. TCF’s primary banking subsidiary, TCF National Bank, is a premier Midwest bank offering consumer and commercial banking, trust and wealth management, and specialty leasing and lending products and services to consumers, small businesses and commercial clients. TCF has approximately 500 branches primarily located in Michigan, Illinois and Minnesota with additional locations in Colorado, Ohio, South Dakota and Wisconsin. TCF also conducts business across all 50 states and Canada through its specialty lending and leasing businesses. To learn more about TCF, visit ir.tcfbank.com.
 
 
 
 
 

Cautionary Statements for Purposes of the Safe Harbor Provisions of the Securities Litigation Reform Act
Any statements contained in this earnings release regarding the outlook for the Corporation's businesses and their respective markets, such as projections of future performance, targets, guidance, statements of the Corporation's plans and objectives, forecasts of market trends and other matters are forward-looking statements based on the Corporation's assumptions and beliefs. Such statements may be identified by such words or phrases as "will likely result," "are expected to," "will continue," "outlook," "will benefit," "is anticipated," "estimate," "project," "management believes" or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those discussed in such statements and no assurance can be given that the results in any forward-looking statement will be achieved. For these statements, TCF claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Any forward-looking

7



statement speaks only as of the date on which it is made and we disclaim any obligation to subsequently revise any forward-looking statement to reflect events or circumstances after such date or to reflect the occurrence of anticipated or unanticipated events.

Certain factors could cause the Corporation's future results to differ materially from those expressed or implied in any forward-looking statements contained herein. These factors include the factors discussed in Part I, Item 1A of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2019 under the heading "Risk Factors" or otherwise disclosed in documents filed or furnished by the Corporation with or to the SEC after the filing of such Annual Report on Form 10-K, and any other cautionary statements, written or oral, which may be made or referred to in connection with any such forward-looking statements. Since it is not possible to foresee all such factors, these factors should not be considered as complete or exhaustive.

This release also contains forward-looking statements regarding TCF’s outlook or expectations with respect to the merger. Examples of forward-looking statements include, but are not limited to, statements regarding outlook and expectations with respect to the strategic and financial benefits of the merger, including the expected impact of the transaction on TCF’s future financial performance (including anticipated accretion to earnings per share, the tangible book value earn-back period and other operating and return metrics), the expected costs to be incurred in connection with the merger, and operational aspects of post-merger integration.

Use of Non-GAAP Financial Measures
Management uses the adjusted net income, adjusted diluted earnings per common share, adjusted ROAA, adjusted ROACE, ROATCE, adjusted ROATCE, adjusted efficiency ratio, adjusted net interest income, net interest margin (FTE), adjusted net interest margin (FTE), adjusted noninterest income, adjusted noninterest expense, tangible book value per common share, tangible common equity to tangible assets and the allowance for credit losses as percentage of total loans and leases, excluding PPP loans internally to measure performance and believes that these financial measures not recognized under generally accepted accounting principles in the United States ("GAAP") (i.e. non-GAAP) provide meaningful information to investors that will permit them to assess the Corporation's capital and ability to withstand unexpected market or economic conditions and to assess the performance of the Corporation in relation to other banking institutions on the same basis as that applied by management, analysts and banking regulators. TCF adjusts certain results to exclude merger-related expenses and notable items in addition to presenting net interest income and net interest margin (FTE) excluding purchase accounting accretion and amortization and the impact of PPP loans. Management believes these measures are useful to investors in understanding TCF's business and operating results.
These non-GAAP financial measures are not defined by GAAP and other entities may calculate them differently than TCF does. Non-GAAP financial measures have inherent limitations and are not required to be uniformly applied. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a corporation, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of results as reported under GAAP. In particular, a measure of earnings that excludes selected items does not represent the amount that effectively accrues directly to shareholders. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measure may be found in the reconciliation tables included in this press release.

8



TCF FINANCIAL CORPORATION AND SUBSIDIARIES
 
 
 
 
 
Consolidated Statements of Financial Condition (Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Change From
(Dollars in thousands)
Jun. 30,
 
Mar. 31,
 
Dec. 31,
 
Sep. 30,
 
Jun. 30,
 
Mar. 31, 2020
Jun. 30, 2019
2020
 
2020
 
2019
 
2019
 
2019
 
$
%
$
%
ASSETS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents:
 
 
 
 
 
 
 
 
 

 
 
 
Cash and due from banks
$
535,507

 
$
713,413

 
$
491,787

 
$
586,060

 
$
294,566

 
$
(177,906
)
(24.9)%
$
240,941

81.8%
Interest-bearing deposits with other banks
2,545,170

 
565,458

 
736,584

 
736,954

 
260,705

 
1,979,712

N.M.
2,284,465

N.M.
Total cash and cash equivalents
3,080,677

 
1,278,871

 
1,228,371

 
1,323,014

 
555,271

 
1,801,806

140.9
2,525,406

N.M.
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost
386,483

 
484,461

 
442,440

 
290,238

 
105,659

 
(97,978
)
(20.2)
280,824

N.M.
Investment securities:
 
 
 
 
 
 
 
 
 
 






Available-for-sale, at fair value
7,219,373

 
7,025,224

 
6,720,001

 
5,579,835

 
3,109,803

 
194,149

2.8
4,109,570

132.1
Held-to-maturity, at amortized cost
130,101

 
135,619

 
139,445

 
144,000

 
144,919

 
(5,518
)
(4.1)
(14,818
)
(10.2)
Total investment securities
7,349,474

 
7,160,843

 
6,859,446

 
5,723,835

 
3,254,722

 
188,631

2.6
4,094,752

125.8
Loans and leases held-for-sale
532,799

 
287,177

 
199,786

 
1,436,069

 
74,410

 
245,622

85.5
458,389

N.M.
Loans and leases
35,535,824

 
35,921,614

 
34,497,464

 
33,510,752

 
19,185,137

 
(385,790
)
(1.1)
16,350,687

85.2
Allowance for loan and lease losses
(461,114
)
 
(406,383
)
 
(113,052
)
 
(121,218
)
 
(146,503
)
 
(54,731
)
(13.5)
(314,611
)
N.M.
Loans and leases, net
35,074,710

 
35,515,231

 
34,384,412

 
33,389,534

 
19,038,634

 
(440,521
)
(1.2)
16,036,076

84.2
Premises and equipment, net
472,240

 
516,454

 
533,138

 
554,194

 
432,751

 
(44,214
)
(8.6)
39,489

9.1
Goodwill
1,313,046

 
1,313,046

 
1,299,878

 
1,265,111

 
154,757

 
0

0.0
1,158,289

N.M.
Other intangible assets, net
157,373

 
162,887

 
168,368

 
215,910

 
18,885

 
(5,514
)
(3.4)
138,488

N.M.
Loan servicing rights
38,816

 
47,283

 
56,313

 
55,301

 
19

 
(8,467
)
(17.9)
38,797

N.M.
Other assets
1,656,842

 
1,828,130

 
1,479,401

 
1,439,305

 
991,722

 
(171,288
)
(9.4)
665,120

67.1
Total assets
$
50,062,460

 
$
48,594,383

 
$
46,651,553

 
$
45,692,511

 
$
24,626,830

 
$
1,468,077

3.0
$
25,435,630

103.3%
LIABILITIES AND EQUITY:
 
 
 
 
 
 
 
 
 






Deposits:
 
 
 
 
 
 
 
 
 
 






Noninterest-bearing
$
10,480,245

 
$
8,237,916

 
$
7,970,590

 
$
7,979,900

 
$
4,062,912

 
$
2,242,329

27.2%
$
6,417,333

157.9%
Interest-bearing
28,730,627

 
27,561,387

 
26,497,873

 
27,306,174

 
15,049,475

 
1,169,240

4.2
13,681,152

90.9
Total deposits
39,210,872

 
35,799,303

 
34,468,463

 
35,286,074

 
19,112,387

 
3,411,569

9.5
20,098,485

105.2
Short-term borrowings
2,772,998

 
3,482,535

 
2,669,145

 
2,607,300

 
350,764

 
(709,537
)
(20.4)
2,422,234

N.M.
Long-term borrowings
936,908

 
2,600,594

 
2,354,448

 
860,482

 
1,617,531

 
(1,663,686
)
(64.0)
(680,623)
(42.1)
Other liabilities
1,483,127

 
1,056,118

 
1,432,256

 
1,245,238

 
835,630

 
427,009

40.4
647,497

77.5
Total liabilities
44,403,905

 
42,938,550

 
40,924,312

 
39,999,094

 
21,916,312

 
1,465,355

3.4
22,487,593

102.6
Equity:
 
 
 
 
 
 
 
 
 
 






Preferred stock
169,302

 
169,302

 
169,302

 
169,302

 
169,302

 


Common stock
152,233

 
152,186

 
152,966

 
153,571

 
87,944

 
47

0.0
64,289

73.1
Additional paid-in capital
3,441,925

 
3,433,234

 
3,462,080

 
3,478,159

 
781,788

 
8,691

0.3
2,660,137

N.M.
Retained earnings
1,700,480

 
1,732,932

 
1,896,427

 
1,840,214

 
1,874,308

 
(32,452
)
(1.9)
(173,828)
(9.3)
Accumulated other comprehensive income
198,408

 
166,170

 
54,277

 
56,228

 
37,334

 
32,238

19.4
161,074

N.M.
Treasury stock at cost and other
(27,093
)
 
(28,140
)
 
(28,037
)
 
(27,370
)
 
(265,017
)
 
1,047

3.7
237,924

89.8
Total TCF Financial Corporation shareholders' equity
5,635,255

 
5,625,684

 
5,707,015

 
5,670,104

 
2,685,659

 
9,571

0.2
2,949,596

109.8
Non-controlling interest
23,300

 
30,149

 
20,226

 
23,313

 
24,858

 
(6,849
)
(22.7)
(1,558)
(6.3)
Total equity
5,658,555

 
5,655,833

 
5,727,241

 
5,693,417

 
2,710,517

 
2,722

0.0
2,948,038

108.8
Total liabilities and equity
$
50,062,460

 
$
48,594,383

 
$
46,651,553

 
$
45,692,511

 
$
24,626,829

 
$
1,468,077

3.0
$
25,435,631

103.3%
N.M. Not Meaningful

9



TCF FINANCIAL CORPORATION AND SUBSIDIARIES
 
 
 
 
 
 
 
 
Consolidated Statements of Income (Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
Change From
(Dollars in thousands)
Jun. 30,
 
Mar. 31,
 
Dec. 31,
 
Sep. 30,
 
Jun. 30,
 
Mar. 31, 2020
 
Jun. 30, 2019
2020
 
2020
 
2019
 
2019
 
2019
 
$
 
%
 
$
 
%
Interest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans and leases
$
392,826

 
$
443,096

 
$
446,738

 
$
417,370

 
$
283,282

 
$
(50,270
)
 
(11.3)%
 
$
109,544

 
38.7%
Interest on investment securities:
 
 
 
 
 
 
 
 
 
 


 
 
 
 
 
 
Taxable
32,505

 
40,920

 
36,282

 
31,038

 
22,041

 
(8,415
)
 
(20.6)
 
10,464

 
47.5
Tax-exempt
4,155

 
4,349

 
4,374

 
3,385

 
1,208

 
(194
)
 
(4.5)
 
2,947

 
N.M.
Interest on loans held-for-sale
3,322

 
1,561

 
15,767

 
1,408

 
599

 
1,761

 
112.8
 
2,723

 
N.M.
Interest on other earning assets
5,562

 
5,466

 
6,617

 
6,607

 
3,651

 
96

 
1.8
 
1,911

 
52.3
Total interest income
438,370

 
495,392

 
509,778

 
459,808

 
310,781

 
(57,022
)
 
(11.5)
 
127,589

 
41.1
Interest expense:
 
 
 
 
 
 
 
 
 
 


 

 


 

Interest on deposits
46,785

 
67,419

 
77,003

 
70,900

 
40,646

 
(20,634
)
 
(30.6)
 
6,139

 
15.1
Interest on borrowings
13,226

 
26,492

 
24,022

 
17,115

 
16,078

 
(13,266
)
 
(50.1)
 
(2,852
)
 
(17.7)
Total interest expense
60,011

 
93,911

 
101,025

 
88,015

 
56,724

 
(33,900
)
 
(36.1)
 
3,287

 
5.8
Net interest income
378,359

 
401,481

 
408,753

 
371,793

 
254,057

 
(23,122
)
 
(5.8)
 
124,302

 
48.9
Provision for credit losses
78,726

 
96,943

 
14,403

 
27,188

 
13,569

 
(18,217
)
 
(18.8)
 
65,157

 
N.M.
Net interest income after provision for credit losses
299,633

 
304,538

 
394,350

 
344,605

 
240,488

 
(4,905
)
 
(1.6)
 
59,145

 
24.6
Noninterest income:
 
 
 
 
 
 
 
 
 
 


 

 


 

Leasing revenue
37,172

 
33,565

 
46,686

 
39,590

 
39,277

 
3,607

 
10.7
 
(2,105
)
 
(5.4)
Fees and service charges on deposit accounts
22,832

 
34,597

 
39,356

 
34,384

 
27,842

 
(11,765
)
 
(34.0)
 
(5,010
)
 
(18.0)
Net gains (losses) on sales of loans and leases
29,034

 
20,590

 
12,934

 
(5,984
)
 
11,141

 
8,444

 
41.0
 
17,893

 
160.6
Card and ATM revenue
20,636

 
21,685

 
24,751

 
23,315

 
20,496

 
(1,049
)
 
(4.8)
 
140

 
0.7
Wealth management revenue
6,206

 
6,151

 
6,172

 
4,241

 

 
55

 
0.9
 
6,206

 
N.M.
Servicing fee revenue
3,041

 
6,792

 
6,022

 
5,121

 
4,523

 
(3,751
)
 
(55.2)
 
(1,482
)
 
(32.8)
Net gains on investment securities
8

 

 
8

 
5,900

 
1,066

 
8

 
N.M.
 
(1,058
)
 
(99.2)
Other
14,125

 
13,583

 
22,123

 
(12,309
)
 
5,373

 
542

 
4.0
 
8,752

 
162.9
Total noninterest income
133,054

 
136,963

 
158,052

 
94,258

 
109,718

 
(3,909
)
 
(2.9)
 
23,336

 
21.3
Noninterest expense:
 
 
 
 
 
 
 
 
 
 


 

 


 

Compensation and employee benefits
171,799

 
171,528

 
180,969

 
155,745

 
116,266

 
271

 
0.2
 
55,533

 
47.8
Occupancy and equipment
54,107

 
57,288

 
56,771

 
49,229

 
41,850

 
(3,181
)
 
(5.6)
 
12,257

 
29.3
Lease financing equipment depreciation
18,212

 
18,450

 
18,629

 
19,408

 
19,133

 
(238
)
 
(1.3)
 
(921
)
 
(4.8)
Net foreclosed real estate and repossessed assets
998

 
1,859

 
4,242

 
2,203

 
2,448

 
(861
)
 
(46.3)
 
(1,450
)
 
(59.2)
Merger-related expenses
81,619

 
36,728

 
47,025

 
111,259

 
4,226

 
44,891

 
122.2
 
77,393

 
N.M.
Other
73,506

 
88,746

 
108,935

 
87,776

 
52,926

 
(15,240
)
 
(17.2)
 
20,580

 
38.9
Total noninterest expense
400,241

 
374,599

 
416,571

 
425,620

 
236,849

 
25,642

 
6.8
 
163,392

 
69.0
Income before income tax expense (benefit)
32,446

 
66,902

 
135,831

 
13,243

 
113,357

 
(34,456
)
 
(51.5)
 
(80,911
)
 
(71.4)
Income tax expense (benefit)
6,213

 
13,086

 
21,375

 
(11,735
)
 
19,314

 
(6,873
)
 
(52.5)
 
(13,101
)
 
(67.8)
Income after income tax expense (benefit)
26,233

 
53,816

 
114,456

 
24,978

 
94,043

 
(27,583
)
 
(51.3)
 
(67,810
)
 
(72.1)
Income attributable to non-controlling interest
2,469

 
1,917

 
2,057

 
2,830

 
3,616

 
552

 
28.8
 
(1,147
)
 
(31.7)
Net income attributable to TCF Financial Corporation
23,764

 
51,899

 
112,399

 
22,148

 
90,427

 
(28,135
)
 
(54.2)
 
(66,663
)
 
(73.7)
Preferred stock dividends
2,494

 
2,493

 
2,494

 
2,494

 
2,494

 
1

 
 

 
Net income available to common shareholders
$
21,270

 
$
49,406

 
$
109,905

 
$
19,654

 
$
87,933

 
$
(28,136
)
 
(56.9)
 
$
(66,663
)
 
(75.8)
N.M. Not Meaningful

10



TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
 
 
 
 
 
 
 
 
 
Six Months Ended June 30,
 
Change
(Dollars in thousands, except per share data)
2020
 
2019
 
$
 
%
Interest income:
 
 
 
 
 
 
 
Interest and fees on loans and leases
$
835,922

 
$
566,520

 
$
269,402

 
47.6%
Interest on investment securities:
 
 
 
 


 


Taxable
73,425

 
38,707

 
34,718

 
89.7
Tax-exempt
8,504

 
3,892

 
4,612

 
118.5
Interest on loans held-for-sale
4,883

 
1,424

 
3,459

 
N.M.
Interest on other earning assets
11,028

 
7,132

 
3,896

 
54.6
Total interest income
933,762

 
617,675

 
316,087

 
51.2
Interest expense:
 
 
 
 


 


Interest on deposits
114,204

 
78,254

 
35,950

 
45.9
Interest on borrowings
39,718

 
30,935

 
8,783

 
28.4
Total interest expense
153,922

 
109,189

 
44,733

 
41.0
Net interest income
779,840

 
508,486

 
271,354

 
53.4
Provision for credit losses
175,669

 
23,691

 
151,978

 
N.M.
Net interest income after provision for credit losses
604,171

 
484,795

 
119,376

 
24.6
Noninterest income:
 
 
 
 


 


Leasing revenue
70,737

 
77,442

 
(6,705
)
 
(8.7)
Fees and service charges on deposit accounts
57,429

 
54,120

 
3,309

 
6.1
Net gains on sales of loans and leases
49,624

 
19,358

 
30,266

 
156.3
Card and ATM revenue
42,321

 
39,155

 
3,166

 
8.1
Wealth management revenue
12,357

 

 
12,357

 
N.M.
Servicing fee revenue
9,833

 
9,633

 
200

 
2.1
Net gains on investment securities
8

 
1,517

 
(1,509
)
 
(99.5)
Other
27,708

 
11,997

 
15,711

 
131.0
Total noninterest income
270,017

 
213,222

 
56,795

 
26.6
Noninterest expense:
 
 
 
 


 


Compensation and employee benefits
343,327

 
240,208

 
103,119

 
42.9
Occupancy and equipment
111,395

 
83,560

 
27,835

 
33.3
Lease financing equipment depreciation
36,662

 
38,389

 
(1,727
)
 
(4.5)
Net foreclosed real estate and repossessed assets
2,857

 
7,078

 
(4,221
)
 
(59.6)
Merger-related expenses
118,347

 
13,684

 
104,663

 
N.M.
Other
162,252

 
107,005

 
55,247

 
51.6
Total noninterest expense
774,840

 
489,924

 
284,916

 
58.2
Income before income tax expense
99,348

 
208,093

 
(108,745
)
 
(52.3)
Income tax expense
19,299

 
40,601

 
(21,302
)
 
(52.5)
Income after income tax expense
80,049

 
167,492

 
(87,443
)
 
(52.2)
Income attributable to non-controlling interest
4,386

 
6,571

 
(2,185
)
 
(33.3)
Net income attributable to TCF Financial Corporation
75,663

 
160,921

 
(85,258
)
 
(53.0)
Preferred stock dividends
4,987

 
4,987

 

 

Net income available to common shareholders
$
70,676

 
$
155,934

 
$
(85,258
)
 
(54.7)
N.M. Not Meaningful


11



TCF FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Average Balance Sheets, Yields and Rates (Unaudited)
 
Quarter Ended
 
Jun. 30, 2020
 
Mar. 31, 2020
 
Jun. 30, 2019
 
Average
 
Yields &
 
Average
 
Yields &
 
Average
 
Yields &
(Dollars in thousands)
Balance
Interest(1)
Rates(1)(2)
 
Balance
Interest(1)
Rates(1)(2)
 
Balance
Interest(1)
Rates(1)(2)
ASSETS:
 
 
 
 
 
 
 
 
 
 
 
Federal Home Loan Bank and Federal Reserve Bank stocks
$
401,532

$
4,376

4.38%
 
$
454,675

$
3,152

2.79%
 
$
112,118

$
1,093

3.91%
Investment securities held-to-maturity
132,054

71

0.21
 
136,277

560

1.64
 
146,296

924

2.53
Investment securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
Taxable
5,730,762

32,434

2.26
 
5,892,006

40,360

2.74
 
2,711,984

21,117

3.11
Tax-exempt(3)
743,744

5,221

2.81
 
773,468

5,503

2.85
 
222,534

1,530

2.75
Loans and leases held-for-sale
356,671

3,322

3.73
 
138,058

1,561

4.53
 
40,835

599

5.88
Loans and leases(3)(4)
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
12,713,714

140,576

4.41
 
11,827,315

160,802

5.42
 
6,683,060

109,679

6.56
Commercial real estate
9,658,124

95,373

3.91
 
9,291,540

117,743

5.01
 
3,069,969

39,204

5.05
Lease financing
2,712,291

33,803

4.99
 
2,682,323

34,156

5.09
 
2,565,175

32,899

5.13
Residential mortgage
6,326,227

62,023

3.93
 
6,113,279

61,379

4.02
 
2,337,818

28,665

4.91
Home equity
3,509,107

45,314

5.19
 
3,514,278

51,103

5.85
 
2,997,050

51,588

6.90
Consumer installment
1,459,446

17,703

4.88
 
1,517,412

19,742

5.23
 
1,586,633

22,262

5.63
Total loans and leases(3)(4)
36,378,909

394,792

4.33
 
34,946,147

444,925

5.08
 
19,239,705

284,297

5.91
Interest-bearing deposits with banks and other
1,587,665

1,186

0.30
 
538,971

2,314

1.72
 
280,075

2,557

3.64
Total interest-earning assets
45,331,337

441,402

3.88
 
42,879,602

498,375

4.64
 
22,753,547

312,117

5.48
Other assets
4,384,779

 
 
 
4,105,824

 
 
 
1,730,275

 
 
Total assets
$
49,716,116

 
 
 
$
46,985,426

 
 
 
$
24,483,822

 
 
LIABILITIES AND EQUITY:
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing deposits
$
9,830,687

 
 
 
$
7,929,933

 
 
 
$
3,980,811

 
 
Interest-bearing deposits:
 
 
 
 
 
 
 
 
 
 
 
Savings
9,082,184

8,930

0.40
 
8,589,815

13,669

0.64
 
6,452,510

12,314

0.77
Certificates of deposit
7,491,502

26,744

1.44
 
7,329,632

33,065

1.81
 
4,527,822

23,304

2.06
Checking
6,649,288

2,329

0.14%
 
5,990,309

5,830

0.39%
 
2,479,814

440

0.07%
Money market
5,380,547

8,782

0.66
 
4,792,248

14,855

1.25
 
1,430,556

4,588

1.29
Total interest-bearing deposits
28,603,521

46,785

0.66
 
26,702,004

67,419

1.02
 
14,890,702

40,646

1.09
Total deposits
38,434,208

46,785

0.49
 
34,631,937

67,419

0.78
 
18,871,513

40,646

0.86
Borrowings:
 
 
 
 
 
 
 
 
 
 
 
Short-term borrowings
3,016,490

4,085

0.54
 
2,689,262

10,582

1.56
 
321,043

2,131

2.63
Long-term borrowings
1,072,394

9,141

3.40
 
2,608,204

15,910

2.42
 
1,657,527

13,946

3.34
Total borrowings
4,088,884

13,226

1.29
 
5,297,466

26,492

1.98
 
1,978,570

16,077

3.23
Total interest-bearing liabilities
32,692,405

60,011

0.74
 
31,999,470

93,911

1.18
 
16,869,272

56,723

1.34
Total deposits and borrowings
42,523,092

60,011

0.57
 
39,929,403

93,911

0.94
 
20,850,083

56,723

1.09
Accrued expenses and other liabilities
1,534,769

 
 
 
1,425,536

 
 
 
969,723

 
 
Total liabilities
44,057,861

 
 
 
41,354,939

 
 
 
21,819,806

 
 
Total TCF Financial Corporation shareholders' equity
5,630,133