[April 24, 2017] |
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TCF Reports Quarterly Net Income of $46.3 Million, or 25 Cents Per Share
TCF Financial Corporation (NYSE: TCB):
FIRST QUARTER HIGHLIGHTS
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Revenue of $325.6 million, up 0.4 percent from the first quarter of
2016
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Net interest income of $222.1 million, up 4.9 percent from the first
quarter of 2016
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Net interest margin of 4.46 percent, up 9 basis points from the first
quarter of 2016
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Period-end loans and leases of $18.0 billion, up 0.7 percent from
March 31, 2016
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Loan and lease originations of $4.0 billion, down 1.0 percent from the
first quarter of 2016
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Net charge-offs as a percentage of average loans and leases of 0.11
percent, down 16 basis points from the first quarter of 2016
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Non-accrual loans and leases of $139.0 million, down 30.0 percent from
March 31, 2016
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Average deposits of $17.1 billion, up 1.3 percent from the first
quarter of 2016
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Effective income tax rate of 30.0 percent, down 480 basis points from
the first quarter of 2016
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Earnings per share of 25 cents, down 3.8 percent from the first
quarter of 2016
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Summary of Financial Results
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Table 1
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Percent Change
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(Dollars in thousands, except per-share data)
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1Q
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4Q
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1Q
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1Q17 vs
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1Q17 vs
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2017
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2016
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2016
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4Q16
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1Q16
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Net income attributable to TCF
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$
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46,278
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$
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50,092
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$
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48,046
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(7.6
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)%
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(3.7
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)%
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Net interest income
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222,114
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211,446
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211,658
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5.0
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4.9
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Diluted earnings per common share
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0.25
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0.27
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0.26
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(7.4
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)
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(3.8
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)
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Financial Ratios(1)
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Return on average assets
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0.90
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%
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0.99
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%
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0.96
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%
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Return on average common equity
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7.64
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8.40
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8.45
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Return on average tangible common equity(2)
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8.55
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9.43
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9.57
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Net interest margin
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4.46
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4.30
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4.37
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Net charge-offs as a percentage of average loans and leases
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0.11
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0.27
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0.27
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(1) Annualized.
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(2) See "Reconciliation of GAAP to Non-GAAP Financial Measures"
table.
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TCF Financial Corporation ("TCF" or the "Company") (NYSE: TCB) today
reported net income of $46.3 million for the first quarter of 2017,
compared with $48.0 million for the first quarter of 2016 and $50.1
million for the fourth quarter of 2016. Diluted earnings per common
share was 25 cents for the first quarter of 2017, compared with 26 cents
for the first quarter of 2016 and 27 cents for the fourth quarter of
2016.
"During the first quarter, we completed an auto finance strategic
reassessment which resulted in the implementation of changes to that
business," said Craig R. Dahl, president and chief executive officer.
"In addition, we completed a consumer real estate non-accrual loan sale
which lowered our risk profile and allowed us to recognize recoveries
from previous charge-offs related to these loans. We also saw strong
year-over-year and quarter-over-quarter improvement in net interest
income and net interest margin.
"Changes to our auto finance strategy and continued strategic
investments in technology capabilities resulted in increased expenses
during the first quarter. We are refocusing our auto strategy to ensure
profitable growth and increase operating leverage in this business
moving forward. In addition, we are making key investments in 2017 that
are focused on enhancing our technology capabilities to better serve our
customers and drive efficiencies in our business. These initiatives are
well underway and I am confident that they put us on a path to
generating superior and sustainable returns for our stockholders."
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Revenue
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Total Revenue
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Table 2
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Percent Change
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(Dollars in thousands)
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1Q
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4Q
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1Q
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1Q17 vs
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1Q17 vs
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2017
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2016
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2016
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4Q16
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1Q16
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Net interest income
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$
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222,114
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$
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211,446
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$
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211,658
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5.0
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%
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4.9
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%
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Non-interest income:
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Fees and service charges
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31,282
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35,132
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32,817
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(11.0
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)
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(4.7
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)
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Card revenue
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13,150
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13,689
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13,363
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(3.9
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(1.6
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ATM revenue
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4,675
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4,806
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5,021
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(2.7
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(6.9
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Subtotal
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49,107
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53,627
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51,201
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(8.4
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)
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(4.1
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)
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Gains on sales of auto loans, net
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2,864
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1,145
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11,920
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150.1
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(76.0
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)
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Gains on sales of consumer real estate loans, net
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8,891
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16,676
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9,384
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(46.7
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(5.3
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Servicing fee income
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11,651
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11,404
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8,883
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2.2
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31.2
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Subtotal
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23,406
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29,225
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30,187
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(19.9
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(22.5
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Leasing and equipment finance
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28,298
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31,316
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28,487
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(9.6
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(0.7
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Other
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2,703
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1,365
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2,843
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98.0
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(4.9
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Fees and other revenue
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103,514
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115,533
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112,718
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(10.4
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(8.2
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Gains (losses) on securities, net
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-
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135
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(116
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(100.0
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)
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(100.0
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)
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Total non-interest income
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103,514
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115,668
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112,602
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(10.5
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)
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(8.1
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Total revenue
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$
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325,628
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$
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327,114
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$
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324,260
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(0.5
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)
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0.4
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Net interest margin(1)
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4.46
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%
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4.30
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%
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4.37
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%
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Total non-interest income as a percentage of total revenue
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31.8
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35.4
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34.7
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(1) Annualized.
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Net Interest Income
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Net interest income for the first quarter of 2017 increased $10.5
million, or 4.9 percent, compared with the first quarter of 2016 and
increased $10.7 million, or 5.0 percent, compared with the fourth
quarter of 2016. The increase from the first quarter of 2016 was
primarily due to higher average balances of inventory finance loans,
leasing and equipment finance loans and leases, securities available
for sale, loans and leases held for sale, and commercial loans, as
well as higher average yields on variable- and adjustable-rate
consumer, commercial and inventory finance loans. These increases were
partially offset by lower average consumer real estate loan balances.
The increase from the fourth quarter of 2016 was primarily due to
higher average yields on all interest-earning assets, seasonally
higher average inventory finance loan balances and higher average
commercial loan balances, partially offset by two fewer days in the
quarter.
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Net interest margin for the first quarter of 2017 was 4.46 percent,
compared with 4.37 percent for the first quarter of 2016 and 4.30
percent for the fourth quarter of 2016. The increase from the first
quarter of 2016 was primarily due to higher average balances of
interest-earning assets and higher average yields on the variable- and
adjustable-rate loans. The increase from the fourth quarter of 2016
was primarily due to higher average yields on all interest-earning
assets, seasonally higher average inventory finance loan balances and
higher average commercial loan balances.
Non-interest Income
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Fees and service charges for the first quarter of 2017 were $31.3
million, down $1.5 million, or 4.7 percent, from the first quarter of
2016 and down $3.9 million, or 11.0 percent, from the fourth quarter
of 2016. The decreases from both periods were primarily due to lower
overdraft fees.
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TCF sold $250.6 million, $444.3 million and $516.0 million of auto
loans during the first quarters of 2017 and 2016 and the fourth
quarter of 2016, respectively, resulting in net gains in each
respective period.
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TCF sold $379.4 million, $321.4 million and $520.8 million of consumer
real estate loans during the first quarters of 2017 and 2016 and the
fourth quarter of 2016, respectively, resulting in net gains in each
respective period. Included in consumer real estate loans sold in the
first quarter of 2017 was $49.4 million of non-accrual loans,
servicing released. As these loans were previously partially
charged-off, a recovery of $8.7 million was recorded as a reduction to
provision for credit losses and a loss of $0.8 million was recorded in
gains on sales of consumer real estate loans, net.
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Servicing fee income was $11.7 million on $5.6 billion of average
loans and leases serviced for others for the first quarter of 2017,
compared with $8.9 million on $4.4 billion for the first quarter of
2016 and $11.4 million on $5.5 billion for the fourth quarter of 2016.
The increase from the first quarter of 2016 was due to the cumulative
effect of the increase in the portfolio of auto finance and consumer
real estate loans sold with servicing retained by TCF.
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Loans and Leases
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Period-End and Average Loans and Leases
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Table 3
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Percent Change
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(Dollars in thousands)
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1Q
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4Q
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1Q
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1Q17 vs
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1Q17 vs
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2017
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2016
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2016
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4Q16
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1Q16
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Period-End:
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Consumer real estate:
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First mortgage lien
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$
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2,166,691
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$
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2,292,596
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$
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2,521,492
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(5.5
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)%
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(14.1
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)%
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Junior lien
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2,494,696
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2,791,756
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2,729,075
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(10.6
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)
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(8.6
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)
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Total consumer real estate
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4,661,387
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5,084,352
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5,250,567
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(8.3
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)
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(11.2
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)
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Commercial
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3,376,050
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3,286,478
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3,114,594
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2.7
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8.4
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Leasing and equipment finance
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4,276,008
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4,336,310
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4,005,934
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(1.4
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)
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6.7
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Inventory finance
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2,864,248
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2,470,175
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2,676,675
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16.0
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7.0
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Auto finance
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2,780,416
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2,647,741
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2,786,731
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5.0
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(0.2
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)
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Other
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16,785
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18,771
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18,940
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(10.6
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)
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(11.4
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)
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Total
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$
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17,974,894
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$
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17,843,827
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$
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17,853,441
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0.7
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0.7
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Average:
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Consumer real estate:
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First mortgage lien
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$
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2,237,801
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$
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2,306,421
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$
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2,573,915
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(3.0
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)%
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(13.1
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)%
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Junior lien
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2,791,200
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2,779,725
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2,884,859
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0.4
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(3.2
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)
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Total consumer real estate
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5,029,001
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5,086,146
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5,458,774
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(1.1
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)
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(7.9
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)
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Commercial
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3,302,891
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3,147,517
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3,158,101
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4.9
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|
4.6
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Leasing and equipment finance
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4,285,944
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4,252,543
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3,992,678
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0.8
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7.3
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Inventory finance
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2,696,787
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2,389,980
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|
2,433,534
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12.8
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|
|
10.8
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Auto finance
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2,714,862
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|
2,647,088
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2,703,880
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2.6
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|
0.4
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Other
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|
|
9,740
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|
|
9,307
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|
|
10,018
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|
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4.7
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|
|
(2.8
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)
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Total
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$
|
18,039,225
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|
$
|
17,532,581
|
|
$
|
17,756,985
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|
|
2.9
|
|
|
1.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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-
Period-end loans and leases were $18.0 billion at March 31, 2017, an
increase of $0.1 billion, or 0.7 percent, compared with March 31, 2016
and December 31, 2016. Average loans and leases were $18.0 billion for
the first quarter of 2017, an increase of $0.3 billion, or
1.6 percent, compared with the first quarter of 2016 and an increase
of $0.5 billion, or 2.9 percent, compared with the fourth quarter of
2016.
The increase from March 31, 2016 for period-end loans
and leases was primarily due to increases in the leasing and equipment
finance, commercial and inventory finance portfolios. The increase
from the first quarter of 2016 for average loans and leases was
primarily due to increases in the leasing and equipment finance,
inventory finance and commercial portfolios. Both of these increases
were partially offset by a decrease in the consumer real estate
portfolio. The increase from December 31, 2016 for period-end loans
and leases was primarily due to seasonal increases in the inventory
finance portfolio and an increase in the auto finance portfolio,
partially offset by a decrease in the consumer real estate portfolio.
The increase from the fourth quarter of 2016 for average loans and
leases was primarily due to seasonal increases in the inventory
finance portfolio and an increase in the commercial portfolio.
-
Loan and lease originations were $4.0 billion for the first quarter of
2017, a decrease of 1.0 percent compared with the first quarter of
2016 and a decrease of $0.3 billion, or 6.9 percent compared with the
fourth quarter of 2016. The decrease from the fourth quarter of 2016
was primarily due to decreased originations in consumer real estate,
leasing and equipment finance and commercial, partially offset by
seasonally higher inventory finance originations.
|
Credit Quality
|
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|
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|
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|
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|
|
Credit Trends
|
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|
Table 4
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Change
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(Dollars in thousands)
|
|
1Q
|
|
4Q
|
|
3Q
|
|
2Q
|
|
1Q
|
|
|
1Q17 vs
|
|
1Q17 vs
|
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
|
4Q16
|
|
1Q16
|
Over 60-day delinquencies as a percentage of period-end loans and
leases(1)
|
|
|
0.09
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%
|
|
|
0.12
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%
|
|
|
0.12
|
%
|
|
|
0.12
|
%
|
|
|
0.10
|
%
|
|
|
(3) bps
|
|
(1) bps
|
Net charge-offs as a percentage of average loans and leases(2)
|
|
|
0.11
|
|
|
|
0.27
|
|
|
|
0.26
|
|
|
|
0.23
|
|
|
|
0.27
|
|
|
|
(16
|
)
|
|
(16
|
)
|
Non-accrual loans and leases and other real estate owned
|
|
$
|
170,940
|
|
|
$
|
228,242
|
|
|
$
|
223,759
|
|
|
$
|
232,334
|
|
|
$
|
241,090
|
|
|
|
(25.1
|
)%
|
|
(29.1
|
)%
|
Provision for credit losses
|
|
|
12,193
|
|
|
|
19,888
|
|
|
|
13,894
|
|
|
|
13,250
|
|
|
|
18,842
|
|
|
|
(38.7
|
)
|
|
(35.3
|
)
|
|
(1) Excludes non-accrual loans and leases.
|
(2) Annualized.
|
|
-
The over 60-day delinquency rate, excluding non-accrual loans and
leases, was 0.09 percent at March 31, 2017, down from 0.10 percent at
March 31, 2016, and down from 0.12 percent at December 31, 2016. The
decrease from March 31, 2016 was primarily driven by improved credit
quality in the consumer real estate first mortgage lien portfolio,
partially offset by higher delinquencies in the auto finance
portfolio. The decrease from December 31, 2016 was primarily driven by
improved delinquencies in the consumer real estate first mortgage lien
and auto finance portfolios.
-
The net charge-off rate was 0.11 percent for the first quarter of
2017, down from 0.27 percent for the first quarter and fourth quarter
of 2016. The decreases from both periods were primarily due to the
recovery of previously charged-off consumer real estate non-accrual
loans that were sold, partially offset by increased net charge-offs in
the commercial portfolio. The decrease from the first quarter of 2016
was also partially offset by increased net charge-offs in the auto
finance portfolio. Excluding the $8.7 million recovery from the
non-accrual loan sale, the net charge-off rate was 0.31% for the first
quarter of 2017.
-
Non-accrual loans and leases and other real estate owned was $170.9
million at March 31, 2017, a decrease of $70.2 million, or 29.1
percent, from March 31, 2016, and a decrease of $57.3 million, or 25.1
percent, from December 31, 2016. Non-accrual loans and leases were
$139.0 million at March 31, 2017, a decrease of $59.7 million, or 30.0
percent, from March 31, 2016 and a decrease of $42.5 million, or 23.4
percent, from December 31, 2016. The decrease from March 31, 2016 was
primarily due to the consumer real estate non-accrual loan sale of
$49.4 million and a decrease in auto finance non-accrual loans,
partially offset by an increase in non-accrual loans in the commercial
and inventory finance portfolios. The decrease from December 31, 2016
was primarily due to the consumer real estate non-accrual loan sale of
$49.4 million, partially offset by an increase in non-accrual
commercial loans and non-accrual leasing and equipment finance loans
and leases. Other real estate owned was $32.0 million at
March 31, 2017, a decrease of $10.5 million, or 24.7 percent, from
March 31, 2016, and a decrease of $14.8 million, or 31.7 percent, from
December 31, 2016. The decreases from both periods were primarily due
to the sales of consumer real estate properties outpacing additions.
-
Provision for credit losses was $12.2 million for the first quarter of
2017, a decrease of $6.6 million, or 35.3 percent, from the first
quarter of 2016, and a decrease of $7.7 million, or 38.7 percent, from
the fourth quarter of 2016. The decreases from both periods were
primarily due to the recovery of $8.7 million on previous charge-offs
related to the consumer real estate non-accrual loans that were sold.
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Deposits
|
|
|
|
|
|
|
|
|
Table 5
|
|
|
|
|
|
|
|
|
|
Percent Change
|
(Dollars in thousands)
|
|
1Q
|
|
4Q
|
|
1Q
|
|
|
1Q17 vs
|
|
1Q17 vs
|
|
|
2017
|
|
2016
|
|
2016
|
|
|
4Q16
|
|
1Q16
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking
|
|
$
|
5,914,203
|
|
|
$
|
5,759,806
|
|
|
$
|
5,593,300
|
|
|
|
2.7
|
%
|
|
5.7
|
%
|
Savings
|
|
|
4,773,788
|
|
|
|
4,681,662
|
|
|
|
4,713,765
|
|
|
|
2.0
|
|
|
1.3
|
|
Money market
|
|
|
2,385,353
|
|
|
|
2,429,239
|
|
|
|
2,472,751
|
|
|
|
(1.8
|
)
|
|
(3.5
|
)
|
Certificates of deposit
|
|
|
4,033,143
|
|
|
|
4,198,190
|
|
|
|
4,104,951
|
|
|
|
(3.9
|
)
|
|
(1.7
|
)
|
Total average deposits
|
|
$
|
17,106,487
|
|
|
$
|
17,068,897
|
|
|
$
|
16,884,767
|
|
|
|
0.2
|
|
|
1.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average interest rate on deposits(1)
|
|
|
0.33
|
%
|
|
|
0.35
|
%
|
|
|
0.36
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Annualized.
|
|
-
Total average deposits for the first quarter of 2017 increased
$221.7 million, or 1.3 percent, from the first quarter of 2016 and
increased $37.6 million or 0.2 percent from the fourth quarter of
2016. The increase from the first quarter of 2016 was primarily due to
growth in average checking balances, partially offset by decreases in
money market balances and certificates of deposit. The increase from
the fourth quarter of 2016 was primarily due to growth in average
checking and savings balances, partially offset by a decrease in
certificates of deposit.
-
The average interest rate on deposits for the first quarter of 2017
was 0.33 percent, down 3 basis points from the first quarter of 2016
and down 2 basis points from the fourth quarter of 2016. The decreases
from both periods were primarily due to decreased average interest
rates on money market balances and certificates of deposit.
|
|
|
|
|
|
|
|
|
Non-interest Expense
|
|
Non-interest Expense
|
|
|
|
|
|
|
|
|
Table 6
|
|
|
|
|
|
|
|
|
|
Change
|
(Dollars in thousands)
|
|
1Q
|
|
4Q
|
|
1Q
|
|
|
1Q17 vs
|
|
1Q17 vs
|
|
|
2017
|
|
2016
|
|
2016
|
|
|
4Q16
|
|
1Q16
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and employee benefits
|
|
$
|
124,477
|
|
|
$
|
115,001
|
|
|
$
|
124,473
|
|
|
|
8.2
|
%
|
|
-
|
%
|
Occupancy and equipment
|
|
|
39,600
|
|
|
|
38,150
|
|
|
|
37,008
|
|
|
|
3.8
|
|
|
7.0
|
|
Other
|
|
|
64,037
|
|
|
|
59,235
|
|
|
|
53,348
|
|
|
|
8.1
|
|
|
20.0
|
|
Subtotal
|
|
|
228,114
|
|
|
|
212,386
|
|
|
|
214,829
|
|
|
|
7.4
|
|
|
6.2
|
|
Operating lease depreciation
|
|
|
11,242
|
|
|
|
10,906
|
|
|
|
9,573
|
|
|
|
3.1
|
|
|
17.4
|
|
Foreclosed real estate and repossessed assets, net
|
|
|
4,549
|
|
|
|
1,889
|
|
|
|
3,920
|
|
|
|
140.8
|
|
|
16.0
|
|
Other credit costs, net
|
|
|
101
|
|
|
|
178
|
|
|
|
12
|
|
|
|
(43.3
|
)
|
|
N.M.
|
Total non-interest expense
|
|
$
|
244,006
|
|
|
$
|
225,359
|
|
|
$
|
228,334
|
|
|
|
8.3
|
|
|
6.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
|
|
|
74.93
|
%
|
|
|
68.89
|
%
|
|
|
70.42
|
%
|
|
|
604 bps
|
|
451 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
N.M. Not Meaningful.
|
|
-
Compensation and employee benefits expense was consistent with the
first quarter of 2016 and increased $9.5 million, or 8.2 percent, from
the fourth quarter of 2016. The increase from the fourth quarter of
2016 was primarily due to seasonality of payroll taxes, the annual
pension plan valuation adjustment in the fourth quarter of 2016 and
the Company's 401K match on incentive compensation, as well as higher
salaries, partially offset by lower medical and pharmacy claims.
-
Other non-interest expense increased $10.7 million, or 20.0 percent,
from the first quarter of 2016 and increased $4.8 million, or 8.1
percent, from the fourth quarter of 2016. The increases were primarily
due to higher severance expense in our auto finance business and
higher professional fees related to strategic investments in
technology capabilities.
-
Net expenses related to foreclosed real estate and repossessed assets
increased $0.6 million, or 16.0 percent, from the first quarter of
2016 and increased $2.7 million, or 140.8 percent, from the fourth
quarter of 2016. The increase from the first quarter of 2016 was
primarily due to lower gains on sales of other real estate owned and
higher repossessed assets expense, partially offset by lower valuation
adjustments and lower operating costs. The increase from the fourth
quarter of 2016 was primarily due to lower gains on sales of
commercial properties and higher repossessed assets expense.
Income Tax Expense
-
The Company's effective income tax rate was 30.0 percent for the first
quarter of 2017, compared with 34.8 percent for the first quarter of
2016 and 36.4 percent for the fourth quarter of 2016. The effective
tax rate for the first quarter of 2017 included discrete tax benefits
totaling $2.3 million, of which $2.0 million resulted from tax
benefits related to stock compensation recorded in income tax expense
that were previously recorded in additional paid-in capital subject to
new accounting guidance adopted January 1, 2017. The decreases from
both periods were also due to increased investments in tax-exempt
securities available for sale.
|
|
|
|
|
Capital
|
|
Capital Information
|
|
Table 7
|
|
|
At Mar. 31,
|
|
At Dec. 31,
|
(Dollars in thousands, except per-share data)
|
|
2017
|
|
2016
|
Total equity
|
|
$
|
2,490,663
|
|
|
$
|
2,444,645
|
|
Book value per common share
|
|
|
12.88
|
|
|
|
12.66
|
|
Tangible book value per common share(1)
|
|
|
11.55
|
|
|
|
11.33
|
|
Common equity to assets
|
|
|
10.08
|
%
|
|
|
10.09
|
%
|
Tangible common equity to tangible assets(1)
|
|
|
9.13
|
|
|
|
9.13
|
|
Capital accumulation rate(2)
|
|
|
6.83
|
|
|
|
8.59
|
|
|
|
|
|
|
|
|
At Mar. 31,
|
|
At Dec. 31,
|
Regulatory Capital:
|
|
2017(3)
|
|
2016
|
Common equity Tier 1 capital
|
|
$
|
2,003,988
|
|
|
$
|
1,970,323
|
|
Tier 1 capital
|
|
|
2,288,736
|
|
|
|
2,248,221
|
|
Total capital
|
|
|
2,667,204
|
|
|
|
2,635,925
|
|
|
|
|
|
|
Regulatory Capital Ratios:
|
|
|
|
|
Common equity Tier 1 capital ratio
|
|
|
10.11
|
%
|
|
|
10.24
|
%
|
Tier 1 risk-based capital ratio
|
|
|
11.55
|
|
|
|
11.68
|
|
Total risk-based capital ratio
|
|
|
13.46
|
|
|
|
13.69
|
|
Tier 1 leverage ratio
|
|
|
10.64
|
|
|
|
10.73
|
|
|
|
|
|
|
(1) See "Reconciliation of GAAP to Non-GAAP Financial Measures"
table.
|
(2) Calculated as the change in annualized year-to-date common
equity Tier 1 capital as a percentage of prior year end common
equity Tier 1 capital.
|
(3) The regulatory capital ratios for 1Q 2017 are preliminary
pending completion and filing of the Company's regulatory reports.
|
|
-
TCF maintained strong capital ratios as the Company accumulated
capital through earnings.
-
Book value per common share increased 1.7 percent from
December 31, 2016 and tangible book value per common share increased
1.9 percent from December 31, 2016.
-
On April 20, 2017, TCF's Board of Directors declared a regular
quarterly cash dividend of 7.5 cents per common share, payable on
June 1, 2017, to stockholders of record at the close of business on
May 15, 2017. TCF also declared dividends on the 7.50% Series A and
6.45% Series B Non-Cumulative Perpetual Preferred Stock, both payable
on June 1, 2017, to stockholders of record at the close of business on
May 15, 2017.
Webcast Information
A live webcast of TCF's conference call to discuss the first quarter
earnings will be hosted at TCF's website, http://ir.tcfbank.com,
on April 24, 2017 at 9:00 a.m. CDT. A slide presentation for the call
will be available on the website prior to the call. Additionally, the
webcast will be available for replay on TCF's website after the
conference call. The website also includes free access to company news
releases, TCF's annual report, investor presentations and SEC filings.
TCF is a Wayzata, Minnesota-based national bank holding company. As
of March 31, 2017, TCF had $21.8 billion in total assets and 331
branches in Illinois, Minnesota, Michigan, Colorado, Wisconsin, Arizona
and South Dakota providing retail and commercial banking services. TCF,
through its subsidiaries, also conducts commercial leasing, equipment
finance and auto finance business in all 50 states and commercial
inventory finance business in all 50 states and Canada. For more
information about TCF, please visit http://ir.tcfbank.com.
Cautionary Statements for Purposes of the Safe Harbor Provisions
of the Securities Litigation Reform Act
Any statements contained in this earnings release regarding the
outlook for the Company's businesses and their respective markets, such
as projections of future performance, guidance, statements of the
Company's plans and objectives, forecasts of market trends and other
matters, are forward-looking statements based on the Company's
assumptions and beliefs. Such statements may be identified by such words
or phrases as "will likely result," "are expected to," "will continue,"
"outlook," "will benefit," "is anticipated," "estimate," "project,"
"management believes" or similar expressions. These forward-looking
statements are subject to certain risks and uncertainties that could
cause actual results to differ materially from those discussed in such
statements and no assurance can be given that the results in any
forward-looking statement will be achieved. For these statements, TCF
claims the protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995. Any
forward-looking statement speaks only as of the date on which it is
made, and we disclaim any obligation to subsequently revise any
forward-looking statement to reflect events or circumstances after such
date or to reflect the occurrence of anticipated or unanticipated events.
Certain factors could cause the Company's future results to differ
materially from those expressed or implied in any forward-looking
statements contained herein. These factors include the factors discussed
in Part I, Item 1A of the Company's Annual Report on Form 10-K for the
year ended December 31, 2016 under the heading "Risk Factors", the
factors discussed below and any other cautionary statements, written or
oral, which may be made or referred to in connection with any such
forward-looking statements. Since it is not possible to foresee all such
factors, these factors should not be considered as complete or
exhaustive.
Adverse Economic or Business Conditions;
Competitive Conditions; Credit and Other Risks. Deterioration
in general economic and banking industry conditions, including those
arising from government shutdowns, defaults, anticipated defaults or
rating agency downgrades of sovereign debt (including debt of the U.S.),
or increases in unemployment; adverse economic, business and competitive
developments such as shrinking interest margins, reduced demand for
financial services and loan and lease products, deposit outflows,
increased deposit costs due to competition for deposit growth and
evolving payment system developments, deposit account attrition or an
inability to increase the number of deposit accounts; customers
completing financial transactions without using a bank; adverse changes
in credit quality and other risks posed by TCF's loan, lease,
investment, securities held to maturity and securities available for
sale portfolios, including declines in commercial or residential real
estate values, changes in the allowance for loan and lease losses
dictated by new market conditions or regulatory requirements, or the
inability of home equity line borrowers to make increased payments
caused by increased interest rates or amortization of principal;
deviations from estimates of prepayment rates and fluctuations in
interest rates that result in decreases in the value of assets such as
interest-only strips that arise in connection with TCF's loan sales
activity; interest rate risks resulting from fluctuations in prevailing
interest rates or other factors that result in a mismatch between yields
earned on TCF's interest-earning assets and the rates paid on its
deposits and borrowings; foreign currency exchange risks; counterparty
risk, including the risk of defaults by our counterparties or diminished
availability of counterparties who satisfy our credit quality
requirements; decreases in demand for the types of equipment that TCF
leases or finances; the effect of any negative publicity.
Legislative and Regulatory Requirements. New
consumer protection and supervisory requirements and regulations,
including those resulting from action by the Consumer Financial
Protection Bureau ("CFPB") and changes in the scope of Federal
preemption of state laws that could be applied to national banks and
their subsidiaries; the imposition of requirements that adversely impact
TCF's deposit, lending, loan collection and other business activities
such as mortgage foreclosure moratorium laws, further regulation of
financial institution campus banking programs, or new restrictions on
loan and lease products; changes affecting customer account charges and
fee income, including changes to interchange rates; regulatory actions
or changes in customer opt-in preferences with respect to overdrafts,
which may have an adverse impact on TCF; governmental regulations or
judicial actions affecting the security interests of creditors;
deficiencies in TCF's compliance programs, including under the Bank
Secrecy Act in past or future periods, which may result in regulatory
enforcement action including monetary penalties; increased health care
costs including those resulting from health care reform; regulatory
criticism and resulting enforcement actions or other adverse
consequences such as increased capital requirements, higher deposit
insurance assessments or monetary damages or penalties; heightened
regulatory practices, requirements or expectations, including, but not
limited to, requirements related to enterprise risk management, the Bank
Secrecy Act and anti-money laundering compliance activity.
Earnings/Capital Risks and Constraints,
Liquidity Risks. Limitations on TCF's ability to pay
dividends or to increase dividends because of financial performance
deterioration, regulatory restrictions or limitations; increased deposit
insurance premiums, special assessments or other costs related to
adverse conditions in the banking industry; the impact on banks of
regulatory reform, including additional capital, leverage, liquidity and
risk management requirements or changes in the composition of qualifying
regulatory capital; adverse changes in securities markets directly or
indirectly affecting TCF's ability to sell assets or to fund its
operations; diminished unsecured borrowing capacity resulting from TCF
credit rating downgrades or unfavorable conditions in the credit markets
that restrict or limit various funding sources; costs associated with
new regulatory requirements or interpretive guidance including those
relating to liquidity; uncertainties relating to future retail deposit
account changes, including limitations on TCF's ability to predict
customer behavior and the impact on TCF's fee revenues.
Branching Risk; Growth Risks. Adverse
developments affecting TCF's supermarket banking relationships or either
of the primary supermarket chains in which TCF maintains supermarket
branches; costs related to closing underperforming branches; inability
to timely close underperforming branches due to long-term lease
obligations; slower than anticipated growth in existing or acquired
businesses; inability to successfully execute on TCF's growth strategy
through acquisitions or expanding existing business relationships;
failure to expand or diversify TCF's balance sheet through new or
expanded programs or opportunities; technology-related risks, including
the failure to successfully attract and retain customers; failure to
effectuate, and risks of claims related to, sales and securitizations of
loans; risks related to new product additions and addition of
distribution channels (or entry into new markets) for existing products.
Technological and Operational Matters. Technological
or operational difficulties, loss or theft of information, cyber-attacks
and other security breaches, counterparty failures and the possibility
that deposit account losses (fraudulent checks, etc.) may increase;
failure to keep pace with technological change, such as by failing to
develop and maintain technology necessary to satisfy customer demands,
costs and possible disruptions related to upgrading systems; the failure
to attract and retain key employees.
Litigation Risks. Results of
litigation or government enforcement actions such as TCF's pending
litigation with the CFPB and related matters, including class action
litigation or enforcement actions concerning TCF's lending or deposit
activities, including account opening/origination, servicing practices,
fees or charges, employment practices, or checking account overdraft
program "opt in" requirements; and possible increases in indemnification
obligations for certain litigation against Visa U.S.A.
Accounting, Audit, Tax and Insurance Matters.
Changes in accounting standards or interpretations of existing
standards; federal or state monetary, fiscal or tax policies, including
adoption of state legislation that would increase state taxes;
ineffective internal controls; adverse federal, state or foreign tax
assessments or findings in tax audits; lack of or inadequate insurance
coverage for claims against TCF; potential for claims and legal action
related to TCF's fiduciary responsibilities.
|
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF INCOME
|
(Dollars in thousands, except per-share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
Change
|
|
|
2017
|
|
2016
|
|
$
|
|
%
|
Interest income:
|
|
|
|
|
|
|
|
|
|
Loans and leases
|
|
$
|
219,548
|
|
|
$
|
214,805
|
|
|
$
|
4,743
|
|
|
2.2
|
%
|
Securities available for sale
|
|
|
7,980
|
|
|
|
5,498
|
|
|
|
2,482
|
|
|
45.1
|
|
Securities held to maturity
|
|
|
1,280
|
|
|
|
1,319
|
|
|
|
(39
|
)
|
|
(3.0
|
)
|
Loans held for sale and other
|
|
|
13,499
|
|
|
|
10,720
|
|
|
|
2,779
|
|
|
25.9
|
|
Total interest income
|
|
|
242,307
|
|
|
|
232,342
|
|
|
|
9,965
|
|
|
4.3
|
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
13,715
|
|
|
|
14,991
|
|
|
|
(1,276
|
)
|
|
(8.5
|
)
|
Borrowings
|
|
|
6,478
|
|
|
|
5,693
|
|
|
|
785
|
|
|
13.8
|
|
Total interest expense
|
|
|
20,193
|
|
|
|
20,684
|
|
|
|
(491
|
)
|
|
(2.4
|
)
|
Net interest income
|
|
|
222,114
|
|
|
|
211,658
|
|
|
|
10,456
|
|
|
4.9
|
|
Provision for credit losses
|
|
|
12,193
|
|
|
|
18,842
|
|
|
|
(6,649
|
)
|
|
(35.3
|
)
|
Net interest income after provision for credit losses
|
|
|
209,921
|
|
|
|
192,816
|
|
|
|
17,105
|
|
|
8.9
|
|
Non-interest income:
|
|
|
|
|
|
|
|
|
|
Fees and service charges
|
|
|
31,282
|
|
|
|
32,817
|
|
|
|
(1,535
|
)
|
|
(4.7
|
)
|
Card revenue
|
|
|
13,150
|
|
|
|
13,363
|
|
|
|
(213
|
)
|
|
(1.6
|
)
|
ATM revenue
|
|
|
4,675
|
|
|
|
5,021
|
|
|
|
(346
|
)
|
|
(6.9
|
)
|
Subtotal
|
|
|
49,107
|
|
|
|
51,201
|
|
|
|
(2,094
|
)
|
|
(4.1
|
)
|
Gains on sales of auto loans, net
|
|
|
2,864
|
|
|
|
11,920
|
|
|
|
(9,056
|
)
|
|
(76.0
|
)
|
Gains on sales of consumer real estate loans, net
|
|
|
8,891
|
|
|
|
9,384
|
|
|
|
(493
|
)
|
|
(5.3
|
)
|
Servicing fee income
|
|
|
11,651
|
|
|
|
8,883
|
|
|
|
2,768
|
|
|
31.2
|
|
Subtotal
|
|
|
23,406
|
|
|
|
30,187
|
|
|
|
(6,781
|
)
|
|
(22.5
|
)
|
Leasing and equipment finance
|
|
|
28,298
|
|
|
|
28,487
|
|
|
|
(189
|
)
|
|
(0.7
|
)
|
Other
|
|
|
2,703
|
|
|
|
2,843
|
|
|
|
(140
|
)
|
|
(4.9
|
)
|
Fees and other revenue
|
|
|
103,514
|
|
|
|
112,718
|
|
|
|
(9,204
|
)
|
|
(8.2
|
)
|
Gains (losses) on securities, net
|
|
|
-
|
|
|
|
(116
|
)
|
|
|
116
|
|
|
(100.0
|
)
|
Total non-interest income
|
|
|
103,514
|
|
|
|
112,602
|
|
|
|
(9,088
|
)
|
|
(8.1
|
)
|
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
Compensation and employee benefits
|
|
|
124,477
|
|
|
|
124,473
|
|
|
|
4
|
|
|
-
|
|
Occupancy and equipment
|
|
|
39,600
|
|
|
|
37,008
|
|
|
|
2,592
|
|
|
7.0
|
|
Other
|
|
|
64,037
|
|
|
|
53,348
|
|
|
|
10,689
|
|
|
20.0
|
|
Subtotal
|
|
|
228,114
|
|
|
|
214,829
|
|
|
|
13,285
|
|
|
6.2
|
|
Operating lease depreciation
|
|
|
11,242
|
|
|
|
9,573
|
|
|
|
1,669
|
|
|
17.4
|
|
Foreclosed real estate and repossessed assets, net
|
|
|
4,549
|
|
|
|
3,920
|
|
|
|
629
|
|
|
16.0
|
|
Other credit costs, net
|
|
|
101
|
|
|
|
12
|
|
|
|
89
|
|
|
N.M.
|
Total non-interest expense
|
|
|
244,006
|
|
|
|
228,334
|
|
|
|
15,672
|
|
|
6.9
|
|
Income before income tax expense
|
|
|
69,429
|
|
|
|
77,084
|
|
|
|
(7,655
|
)
|
|
(9.9
|
)
|
Income tax expense
|
|
|
20,843
|
|
|
|
26,803
|
|
|
|
(5,960
|
)
|
|
(22.2
|
)
|
Income after income tax expense
|
|
|
48,586
|
|
|
|
50,281
|
|
|
|
(1,695
|
)
|
|
(3.4
|
)
|
Income attributable to non-controlling interest
|
|
|
2,308
|
|
|
|
2,235
|
|
|
|
73
|
|
|
3.3
|
|
Net income attributable to TCF Financial Corporation
|
|
|
46,278
|
|
|
|
48,046
|
|
|
|
(1,768
|
)
|
|
(3.7
|
)
|
Preferred stock dividends
|
|
|
4,847
|
|
|
|
4,847
|
|
|
|
-
|
|
|
-
|
|
Net income available to common stockholders
|
|
$
|
41,431
|
|
|
$
|
43,199
|
|
|
$
|
(1,768
|
)
|
|
(4.1
|
)
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.25
|
|
|
$
|
0.26
|
|
|
$
|
(0.01
|
)
|
|
(3.8
|
)%
|
Diluted
|
|
|
0.25
|
|
|
|
0.26
|
|
|
|
(0.01
|
)
|
|
(3.8
|
)
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share
|
|
$
|
0.075
|
|
|
$
|
0.075
|
|
|
$
|
-
|
|
|
-
|
%
|
|
|
|
|
|
|
|
|
|
|
Average common and common equivalent shares outstanding (in
thousands):
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
167,903
|
|
|
|
166,887
|
|
|
|
1,016
|
|
|
0.6
|
%
|
Diluted
|
|
|
168,530
|
|
|
|
167,435
|
|
|
|
1,095
|
|
|
0.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N.M. Not Meaningful.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
(Dollars in thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
Change
|
|
|
2017
|
|
2016
|
|
$
|
|
%
|
Net income attributable to TCF Financial Corporation
|
|
$
|
46,278
|
|
|
$
|
48,046
|
|
|
$
|
(1,768
|
)
|
|
(3.7
|
)%
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) on securities available for sale and
interest-only strips
|
|
|
2,769
|
|
|
|
12,037
|
|
|
|
(9,268
|
)
|
|
(77.0
|
)
|
Net unrealized gains (losses) on net investment hedges
|
|
|
(313
|
)
|
|
|
(2,020
|
)
|
|
|
1,707
|
|
|
84.5
|
|
Foreign currency translation adjustment
|
|
|
581
|
|
|
|
3,409
|
|
|
|
(2,828
|
)
|
|
(83.0
|
)
|
Recognized postretirement prior service cost
|
|
|
(7
|
)
|
|
|
(7
|
)
|
|
|
-
|
|
|
-
|
|
Total other comprehensive income (loss), net of tax
|
|
|
3,030
|
|
|
|
13,419
|
|
|
|
(10,389
|
)
|
|
(77.4
|
)
|
Comprehensive income
|
|
$
|
49,308
|
|
|
$
|
61,465
|
|
|
$
|
(12,157
|
)
|
|
(19.8
|
)
|
|
|
|
|
|
|
|
|
|
|
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
|
(Dollars in thousands, except per-share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
At March 31,
|
|
At Dec. 31,
|
|
Change
|
|
|
2017
|
|
2016
|
|
$
|
|
%
|
ASSETS:
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
$
|
468,584
|
|
|
$
|
609,603
|
|
|
$
|
(141,019
|
)
|
|
(23.1
|
)%
|
Investments
|
|
|
81,717
|
|
|
|
74,714
|
|
|
|
7,003
|
|
|
9.4
|
|
Securities held to maturity
|
|
|
176,236
|
|
|
|
181,314
|
|
|
|
(5,078
|
)
|
|
(2.8
|
)
|
Securities available for sale
|
|
|
1,475,950
|
|
|
|
1,423,435
|
|
|
|
52,515
|
|
|
3.7
|
|
Loans and leases held for sale
|
|
|
605,631
|
|
|
|
268,832
|
|
|
|
336,799
|
|
|
125.3
|
|
Loans and leases:
|
|
|
|
|
|
|
|
|
Consumer real estate:
|
|
|
|
|
|
|
|
|
First mortgage lien
|
|
|
2,166,691
|
|
|
|
2,292,596
|
|
|
|
(125,905
|
)
|
|
(5.5
|
)
|
Junior lien
|
|
|
2,494,696
|
|
|
|
2,791,756
|
|
|
|
(297,060
|
)
|
|
(10.6
|
)
|
Total consumer real estate
|
|
|
4,661,387
|
|
|
|
5,084,352
|
|
|
|
(422,965
|
)
|
|
(8.3
|
)
|
Commercial
|
|
|
3,376,050
|
|
|
|
3,286,478
|
|
|
|
89,572
|
|
|
2.7
|
|
Leasing and equipment finance
|
|
|
4,276,008
|
|
|
|
4,336,310
|
|
|
|
(60,302
|
)
|
|
(1.4
|
)
|
Inventory finance
|
|
|
2,864,248
|
|
|
|
2,470,175
|
|
|
|
394,073
|
|
|
16.0
|
|
Auto finance
|
|
|
2,780,416
|
|
|
|
2,647,741
|
|
|
|
132,675
|
|
|
5.0
|
|
Other
|
|
|
16,785
|
|
|
|
18,771
|
|
|
|
(1,986
|
)
|
|
(10.6
|
)
|
Total loans and leases
|
|
|
17,974,894
|
|
|
|
17,843,827
|
|
|
|
131,067
|
|
|
0.7
|
|
Allowance for loan and lease losses
|
|
|
(160,166
|
)
|
|
|
(160,269
|
)
|
|
|
103
|
|
|
0.1
|
|
Net loans and leases
|
|
|
17,814,728
|
|
|
|
17,683,558
|
|
|
|
131,170
|
|
|
0.7
|
|
Premises and equipment, net
|
|
|
423,055
|
|
|
|
418,372
|
|
|
|
4,683
|
|
|
1.1
|
|
Goodwill
|
|
|
225,640
|
|
|
|
225,640
|
|
|
|
-
|
|
|
-
|
|
Other assets
|
|
|
565,027
|
|
|
|
555,858
|
|
|
|
9,169
|
|
|
1.6
|
|
Total assets
|
|
$
|
21,836,568
|
|
|
$
|
21,441,326
|
|
|
$
|
395,242
|
|
|
1.8
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY:
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
Checking
|
|
$
|
6,218,654
|
|
|
$
|
6,009,151
|
|
|
$
|
209,503
|
|
|
3.5
|
%
|
Savings
|
|
|
4,850,742
|
|
|
|
4,719,481
|
|
|
|
131,261
|
|
|
2.8
|
|
Money market
|
|
|
2,301,643
|
|
|
|
2,421,467
|
|
|
|
(119,824
|
)
|
|
(4.9
|
)
|
Certificates of deposit
|
|
|
4,094,551
|
|
|
|
4,092,423
|
|
|
|
2,128
|
|
|
0.1
|
|
Total deposits
|
|
|
17,465,590
|
|
|
|
17,242,522
|
|
|
|
223,068
|
|
|
1.3
|
|
Short-term borrowings
|
|
|
5,432
|
|
|
|
4,391
|
|
|
|
1,041
|
|
|
23.7
|
|
Long-term borrowings
|
|
|
1,241,155
|
|
|
|
1,073,181
|
|
|
|
167,974
|
|
|
15.7
|
|
Total borrowings
|
|
|
1,246,587
|
|
|
|
1,077,572
|
|
|
|
169,015
|
|
|
15.7
|
|
Accrued expenses and other liabilities
|
|
|
633,728
|
|
|
|
676,587
|
|
|
|
(42,859
|
)
|
|
(6.3
|
)
|
Total liabilities
|
|
|
19,345,905
|
|
|
|
18,996,681
|
|
|
|
349,224
|
|
|
1.8
|
|
Equity:
|
|
|
|
|
|
|
|
|
Preferred stock, par value $0.01 per share, 30,000,000 shares
authorized; 4,006,900 shares issued
|
|
|
263,240
|
|
|
|
263,240
|
|
|
|
-
|
|
|
-
|
|
Common stock, par value $0.01 per share, 280,000,000 shares
authorized; 170,983,828 and 171,034,506 shares issued, respectively
|
|
|
1,710
|
|
|
|
1,710
|
|
|
|
-
|
|
|
-
|
|
Additional paid-in capital
|
|
|
853,024
|
|
|
|
862,776
|
|
|
|
(9,752
|
)
|
|
(1.1
|
)
|
Retained earnings, subject to certain restrictions
|
|
|
1,410,418
|
|
|
|
1,382,901
|
|
|
|
27,517
|
|
|
2.0
|
|
Accumulated other comprehensive income (loss)
|
|
|
(30,695
|
)
|
|
|
(33,725
|
)
|
|
|
3,030
|
|
|
9.0
|
|
Treasury stock at cost, 42,566 shares, and other
|
|
|
(33,585
|
)
|
|
|
(49,419
|
)
|
|
|
15,834
|
|
|
32.0
|
|
Total TCF Financial Corporation stockholders' equity
|
|
|
2,464,112
|
|
|
|
2,427,483
|
|
|
|
36,629
|
|
|
1.5
|
|
Non-controlling interest in subsidiaries
|
|
|
26,551
|
|
|
|
17,162
|
|
|
|
9,389
|
|
|
54.7
|
|
Total equity
|
|
|
2,490,663
|
|
|
|
2,444,645
|
|
|
|
46,018
|
|
|
1.9
|
|
Total liabilities and equity
|
|
$
|
21,836,568
|
|
|
$
|
21,441,326
|
|
|
$
|
395,242
|
|
|
1.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TCF FINANCIAL CORPORATION AND SUBSIDIARIES SUMMARY OF
CREDIT QUALITY DATA (Dollars in thousands) (Unaudited)
|
Over 60-Day Delinquencies as a Percentage
of Portfolio(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At
|
|
At
|
|
At
|
|
At
|
|
At
|
|
|
Change from
|
|
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sep. 30,
|
|
Jun. 30,
|
|
Mar. 31,
|
|
|
Dec. 31,
|
|
|
Mar. 31,
|
|
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
Consumer real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First mortgage lien
|
|
0.28
|
%
|
|
0.40
|
%
|
|
0.36
|
%
|
|
0.36
|
%
|
|
0.39
|
%
|
|
|
(12
|
)
|
bps
|
|
(11
|
)
|
bps
|
Junior lien
|
|
0.05
|
|
|
0.05
|
|
|
0.03
|
|
|
0.03
|
|
|
0.05
|
|
|
|
-
|
|
|
|
-
|
|
|
Total consumer real estate
|
|
0.15
|
|
|
0.21
|
|
|
0.18
|
|
|
0.18
|
|
|
0.21
|
|
|
|
(6
|
)
|
|
|
(6
|
)
|
|
Commercial
|
|
-
|
|
|
-
|
|
|
0.01
|
|
|
0.11
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Leasing and equipment finance
|
|
0.12
|
|
|
0.10
|
|
|
0.14
|
|
|
0.13
|
|
|
0.12
|
|
|
|
2
|
|
|
|
-
|
|
|
Inventory finance
|
|
-
|
|
|
-
|
|
|
0.01
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Auto finance
|
|
0.13
|
|
|
0.23
|
|
|
0.20
|
|
|
0.13
|
|
|
0.09
|
|
|
|
(10
|
)
|
|
|
4
|
|
|
Other
|
|
0.05
|
|
|
0.10
|
|
|
0.05
|
|
|
0.33
|
|
|
0.13
|
|
|
|
(5
|
)
|
|
|
(8
|
)
|
|
Subtotal
|
|
0.09
|
|
|
0.12
|
|
|
0.12
|
|
|
0.12
|
|
|
0.10
|
|
|
|
(3
|
)
|
|
|
(1
|
)
|
|
Portfolios acquired with deteriorated credit quality
|
|
-
|
|
|
-
|
|
|
3.06
|
|
|
0.02
|
|
|
1.51
|
|
|
|
-
|
|
|
|
(151
|
)
|
|
Total delinquencies
|
|
0.09
|
|
|
0.12
|
|
|
0.12
|
|
|
0.12
|
|
|
0.10
|
|
|
|
(3
|
)
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes non-accrual loans and leases.
|
|
|
Net Charge-Offs as a Percentage of
Average Loans and Leases
|
|
|
|
|
|
|
|
|
|
Three Months Ended(1)
|
|
|
Change from
|
|
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sep. 30,
|
|
Jun. 30,
|
|
Mar. 31,
|
|
|
Dec. 31,
|
|
|
Mar. 31,
|
|
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
Consumer real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First mortgage lien
|
|
(0.18
|
)%
|
|
0.26
|
%
|
|
0.34
|
%
|
|
0.35
|
%
|
|
0.55
|
%
|
|
|
(44
|
)
|
bps
|
|
(73
|
)
|
bps
|
Junior lien
|
|
(0.89
|
)
|
|
0.08
|
|
|
0.04
|
|
|
0.05
|
|
|
0.17
|
|
|
|
(97
|
)
|
|
|
(106
|
)
|
|
Total consumer real estate
|
|
(0.58
|
)
|
|
0.17
|
|
|
0.17
|
|
|
0.19
|
|
|
0.35
|
|
|
|
(75
|
)
|
|
|
(93
|
)
|
|
Commercial
|
|
0.32
|
|
|
0.01
|
|
|
(0.01
|
)
|
|
0.08
|
|
|
(0.02
|
)
|
|
|
31
|
|
|
|
34
|
|
|
Leasing and equipment finance
|
|
0.13
|
|
|
0.10
|
|
|
0.18
|
|
|
0.11
|
|
|
0.13
|
|
|
|
3
|
|
|
|
-
|
|
|
Inventory finance
|
|
0.01
|
|
|
0.07
|
|
|
0.10
|
|
|
0.09
|
|
|
0.04
|
|
|
|
(6
|
)
|
|
|
(3
|
)
|
|
Auto finance
|
|
1.12
|
|
|
1.09
|
|
|
0.86
|
|
|
0.69
|
|
|
0.81
|
|
|
|
3
|
|
|
|
31
|
|
|
Other
|
|
N.M.
|
|
N.M.
|
|
N.M.
|
|
N.M.
|
|
N.M.
|
|
|
N.M.
|
|
|
N.M.
|
|
Total
|
|
0.11
|
|
|
0.27
|
|
|
0.26
|
|
|
0.23
|
|
|
0.27
|
|
|
|
(16
|
)
|
|
|
(16
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N.M. Not Meaningful.
|
(1) Annualized.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Accrual Loans and Leases Rollforward
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Change from
|
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sep. 30,
|
|
Jun. 30,
|
|
Mar. 31,
|
|
|
Dec. 31,
|
|
Mar. 31,
|
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
|
2016
|
|
2016
|
Balance, beginning of period
|
|
$
|
181,445
|
|
|
$
|
190,047
|
|
|
$
|
195,542
|
|
|
$
|
198,649
|
|
|
$
|
200,466
|
|
|
|
$
|
(8,602
|
)
|
|
$
|
(19,021
|
)
|
Additions
|
|
|
34,661
|
|
|
|
32,398
|
|
|
|
28,697
|
|
|
|
35,280
|
|
|
|
38,029
|
|
|
|
|
2,263
|
|
|
|
(3,368
|
)
|
Charge-offs
|
|
|
(6,412
|
)
|
|
|
(4,158
|
)
|
|
|
(5,670
|
)
|
|
|
(5,475
|
)
|
|
|
(7,436
|
)
|
|
|
|
(2,254
|
)
|
|
|
1,024
|
|
Transfers to other assets
|
|
|
(8,786
|
)
|
|
|
(17,118
|
)
|
|
|
(11,687
|
)
|
|
|
(10,310
|
)
|
|
|
(12,342
|
)
|
|
|
|
8,332
|
|
|
|
3,556
|
|
Return to accrual status
|
|
|
(2,591
|
)
|
|
|
(4,546
|
)
|
|
|
(5,447
|
)
|
|
|
(6,687
|
)
|
|
|
(7,698
|
)
|
|
|
|
1,955
|
|
|
|
5,107
|
|
Payments received
|
|
|
(10,732
|
)
|
|
|
(14,351
|
)
|
|
|
(13,845
|
)
|
|
|
(17,774
|
)
|
|
|
(15,551
|
)
|
|
|
|
3,619
|
|
|
|
4,819
|
|
Sales
|
|
|
(49,916
|
)
|
|
|
(2,764
|
)
|
|
|
-
|
|
|
|
(900
|
)
|
|
|
-
|
|
|
|
|
(47,152
|
)
|
|
|
(49,916
|
)
|
Other, net
|
|
|
1,312
|
|
|
|
1,937
|
|
|
|
2,457
|
|
|
|
2,759
|
|
|
|
3,181
|
|
|
|
|
(625
|
)
|
|
|
(1,869
|
)
|
Balance, end of period
|
|
$
|
138,981
|
|
|
$
|
181,445
|
|
|
$
|
190,047
|
|
|
$
|
195,542
|
|
|
$
|
198,649
|
|
|
|
$
|
(42,464
|
)
|
|
$
|
(59,668
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Real Estate Owned Rollforward
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Change from
|
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sep. 30,
|
|
Jun. 30,
|
|
Mar. 31,
|
|
|
Dec. 31,
|
|
Mar. 31,
|
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
|
2016
|
|
2016
|
Balance, beginning of period
|
|
$
|
46,797
|
|
|
$
|
33,712
|
|
|
$
|
36,792
|
|
|
$
|
42,441
|
|
|
$
|
49,982
|
|
|
|
$
|
13,085
|
|
|
$
|
(3,185
|
)
|
Transferred in
|
|
|
7,212
|
|
|
|
13,865
|
|
|
|
10,124
|
|
|
|
9,661
|
|
|
|
10,575
|
|
|
|
|
(6,653
|
)
|
|
|
(3,363
|
)
|
Sales
|
|
|
(14,982
|
)
|
|
|
(8,655
|
)
|
|
|
(12,997
|
)
|
|
|
(16,058
|
)
|
|
|
(18,885
|
)
|
|
|
|
(6,327
|
)
|
|
|
3,903
|
|
Writedowns
|
|
|
(1,538
|
)
|
|
|
(1,281
|
)
|
|
|
(1,984
|
)
|
|
|
(2,027
|
)
|
|
|
(2,744
|
)
|
|
|
|
(257
|
)
|
|
|
1,206
|
|
Other, net(1)
|
|
|
(5,530
|
)
|
|
|
9,156
|
|
|
|
1,777
|
|
|
|
2,775
|
|
|
|
3,513
|
|
|
|
|
(14,686
|
)
|
|
|
(9,043
|
)
|
Balance, end of period
|
|
$
|
31,959
|
|
|
$
|
46,797
|
|
|
$
|
33,712
|
|
|
$
|
36,792
|
|
|
$
|
42,441
|
|
|
|
$
|
(14,838
|
)
|
|
$
|
(10,482
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes transfers (to) from premises and equipment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Loan and Lease Losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At
|
|
At
|
|
At
|
|
At
|
|
At
|
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sep. 30,
|
|
Jun. 30,
|
|
Mar. 31,
|
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
|
|
|
% of
|
|
|
|
% of
|
|
|
|
% of
|
|
|
|
% of
|
|
|
|
% of
|
|
|
Balance
|
|
Portfolio
|
|
Balance
|
|
Portfolio
|
|
Balance
|
|
Portfolio
|
|
Balance
|
|
Portfolio
|
|
Balance
|
|
Portfolio
|
Consumer real estate
|
|
$
|
53,851
|
|
1.16
|
%
|
|
$
|
59,448
|
|
1.17
|
%
|
|
$
|
62,092
|
|
1.24
|
%
|
|
$
|
64,765
|
|
1.27
|
%
|
|
$
|
66,728
|
|
1.27
|
%
|
Commercial
|
|
|
33,697
|
|
1.00
|
|
|
|
32,695
|
|
0.99
|
|
|
|
31,648
|
|
1.00
|
|
|
|
31,161
|
|
1.01
|
|
|
|
31,547
|
|
1.01
|
|
Leasing and equipment finance
|
|
|
21,257
|
|
0.50
|
|
|
|
21,350
|
|
0.49
|
|
|
|
20,649
|
|
0.49
|
|
|
|
20,124
|
|
0.49
|
|
|
|
19,454
|
|
0.49
|
|
Inventory finance
|
|
|
15,816
|
|
0.55
|
|
|
|
13,932
|
|
0.56
|
|
|
|
11,807
|
|
0.52
|
|
|
|
12,084
|
|
0.52
|
|
|
|
13,306
|
|
0.50
|
|
Auto finance
|
|
|
35,108
|
|
1.26
|
|
|
|
32,310
|
|
1.22
|
|
|
|
29,115
|
|
1.07
|
|
|
|
29,772
|
|
1.06
|
|
|
|
28,535
|
|
1.02
|
|
Other
|
|
|
437
|
|
2.60
|
|
|
|
534
|
|
2.84
|
|
|
|
530
|
|
2.96
|
|
|
|
666
|
|
3.19
|
|
|
|
504
|
|
2.66
|
|
Total
|
|
$
|
160,166
|
|
0.89
|
|
|
$
|
160,269
|
|
0.90
|
|
|
$
|
155,841
|
|
0.90
|
|
|
$
|
158,572
|
|
0.91
|
|
|
$
|
160,074
|
|
0.90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in Allowance for Loan and Lease
Losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Change from
|
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sep. 30,
|
|
Jun. 30,
|
|
Mar. 31,
|
|
|
Dec. 31,
|
|
Mar. 31,
|
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
|
2016
|
|
2016
|
Balance, beginning of period
|
|
$
|
160,269
|
|
|
$
|
155,841
|
|
|
$
|
158,572
|
|
|
$
|
160,074
|
|
|
$
|
156,054
|
|
|
|
$
|
4,428
|
|
|
$
|
4,215
|
|
Charge-offs
|
|
|
(18,902
|
)
|
|
|
(16,451
|
)
|
|
|
(16,244
|
)
|
|
|
(14,723
|
)
|
|
|
(16,667
|
)
|
|
|
|
(2,451
|
)
|
|
|
(2,235
|
)
|
Recoveries
|
|
|
13,813
|
|
|
|
4,718
|
|
|
|
4,779
|
|
|
|
4,592
|
|
|
|
4,761
|
|
|
|
|
9,095
|
|
|
|
9,052
|
|
Net (charge-offs) recoveries
|
|
|
(5,089
|
)
|
|
|
(11,733
|
)
|
|
|
(11,465
|
)
|
|
|
(10,131
|
)
|
|
|
(11,906
|
)
|
|
|
|
6,644
|
|
|
|
6,817
|
|
Provision for credit losses
|
|
|
12,193
|
|
|
|
19,888
|
|
|
|
13,894
|
|
|
|
13,250
|
|
|
|
18,842
|
|
|
|
|
(7,695
|
)
|
|
|
(6,649
|
)
|
Other
|
|
|
(7,207
|
)
|
|
|
(3,727
|
)
|
|
|
(5,160
|
)
|
|
|
(4,621
|
)
|
|
|
(2,916
|
)
|
|
|
|
(3,480
|
)
|
|
|
(4,291
|
)
|
Balance, end of period
|
|
$
|
160,166
|
|
|
$
|
160,269
|
|
|
$
|
155,841
|
|
|
$
|
158,572
|
|
|
$
|
160,074
|
|
|
|
$
|
(103
|
)
|
|
$
|
92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
|
(Dollars in thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
2017
|
|
2016
|
|
|
Average
|
|
|
|
Yields and
|
|
Average
|
|
|
|
Yields and
|
|
|
Balance
|
|
Interest(1)
|
|
Rates(1)(2)
|
|
Balance
|
|
Interest(1)
|
|
Rates(1)(2)
|
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments and other
|
|
$
|
286,519
|
|
$
|
2,747
|
|
3.88
|
%
|
|
$
|
349,079
|
|
$
|
2,216
|
|
2.55
|
%
|
Securities held to maturity
|
|
|
177,939
|
|
|
1,280
|
|
2.88
|
|
|
|
199,303
|
|
|
1,319
|
|
2.65
|
|
Securities available for sale:(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
815,867
|
|
|
4,654
|
|
2.28
|
|
|
|
640,796
|
|
|
3,818
|
|
2.38
|
|
Tax-exempt(4)
|
|
|
640,826
|
|
|
5,117
|
|
3.19
|
|
|
|
319,427
|
|
|
2,584
|
|
3.24
|
|
Loans and leases held for sale
|
|
|
464,301
|
|
|
10,752
|
|
9.39
|
|
|
|
367,686
|
|
|
8,504
|
|
9.30
|
|
Loans and leases:(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed-rate
|
|
|
2,083,472
|
|
|
29,287
|
|
5.70
|
|
|
|
2,430,773
|
|
|
35,202
|
|
5.82
|
|
Variable- and adjustable-rate
|
|
|
2,945,529
|
|
|
40,239
|
|
5.54
|
|
|
|
3,028,001
|
|
|
40,056
|
|
5.32
|
|
Total consumer real estate
|
|
|
5,029,001
|
|
|
69,526
|
|
5.60
|
|
|
|
5,458,774
|
|
|
75,258
|
|
5.54
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed-rate
|
|
|
1,000,316
|
|
|
11,713
|
|
4.75
|
|
|
|
1,012,870
|
|
|
12,429
|
|
4.94
|
|
Variable- and adjustable-rate
|
|
|
2,302,575
|
|
|
24,391
|
|
4.30
|
|
|
|
2,145,231
|
|
|
21,337
|
|
4.00
|
|
Total commercial
|
|
|
3,302,891
|
|
|
36,104
|
|
4.43
|
|
|
|
3,158,101
|
|
|
33,766
|
|
4.30
|
|
Leasing and equipment finance
|
|
|
4,285,944
|
|
|
47,976
|
|
4.48
|
|
|
|
3,992,678
|
|
|
44,654
|
|
4.47
|
|
Inventory finance
|
|
|
2,696,787
|
|
|
39,451
|
|
5.93
|
|
|
|
2,433,534
|
|
|
34,370
|
|
5.68
|
|
Auto finance
|
|
|
2,714,862
|
|
|
27,771
|
|
4.15
|
|
|
|
2,703,880
|
|
|
27,837
|
|
4.14
|
|
Other
|
|
|
9,740
|
|
|
131
|
|
5.44
|
|
|
|
10,018
|
|
|
142
|
|
5.63
|
|
Total loans and leases
|
|
|
18,039,225
|
|
|
220,959
|
|
4.95
|
|
|
|
17,756,985
|
|
|
216,027
|
|
4.89
|
|
Total interest-earning assets
|
|
|
20,424,677
|
|
|
245,509
|
|
4.86
|
|
|
|
19,633,276
|
|
|
234,468
|
|
4.80
|
|
Other assets(6)
|
|
|
1,263,678
|
|
|
|
|
|
|
1,297,479
|
|
|
|
|
Total assets
|
|
$
|
21,688,355
|
|
|
|
|
|
$
|
20,930,755
|
|
|
|
|
LIABILITIES AND EQUITY:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
1,880,298
|
|
|
|
|
|
$
|
1,751,710
|
|
|
|
|
Small business
|
|
|
894,845
|
|
|
|
|
|
|
853,645
|
|
|
|
|
Commercial and custodial
|
|
|
626,081
|
|
|
|
|
|
|
560,983
|
|
|
|
|
Total non-interest bearing deposits
|
|
|
3,401,224
|
|
|
|
|
|
|
3,166,338
|
|
|
|
|
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking
|
|
|
2,530,281
|
|
|
83
|
|
0.01
|
|
|
|
2,440,563
|
|
|
81
|
|
0.01
|
|
Savings
|
|
|
4,756,486
|
|
|
501
|
|
0.04
|
|
|
|
4,700,164
|
|
|
346
|
|
0.03
|
|
Money market
|
|
|
2,385,353
|
|
|
2,938
|
|
0.50
|
|
|
|
2,472,751
|
|
|
3,807
|
|
0.62
|
|
Certificates of deposit
|
|
|
4,033,143
|
|
|
10,193
|
|
1.02
|
|
|
|
4,104,951
|
|
|
10,757
|
|
1.05
|
|
Total interest-bearing deposits
|
|
|
13,705,263
|
|
|
13,715
|
|
0.41
|
|
|
|
13,718,429
|
|
|
14,991
|
|
0.44
|
|
Total deposits
|
|
|
17,106,487
|
|
|
13,715
|
|
0.33
|
|
|
|
16,884,767
|
|
|
14,991
|
|
0.36
|
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
|
4,628
|
|
|
7
|
|
0.65
|
|
|
|
5,562
|
|
|
7
|
|
0.53
|
|
Long-term borrowings
|
|
|
1,459,053
|
|
|
6,471
|
|
1.78
|
|
|
|
1,062,513
|
|
|
5,686
|
|
2.14
|
|
Total borrowings
|
|
|
1,463,681
|
|
|
6,478
|
|
1.78
|
|
|
|
1,068,075
|
|
|
5,693
|
|
2.13
|
|
Total interest-bearing liabilities
|
|
|
15,168,944
|
|
|
20,193
|
|
0.54
|
|
|
|
14,786,504
|
|
|
20,684
|
|
0.56
|
|
Total deposits and borrowings
|
|
|
18,570,168
|
|
|
20,193
|
|
0.44
|
|
|
|
17,952,842
|
|
|
20,684
|
|
0.46
|
|
Other liabilities
|
|
|
665,301
|
|
|
|
|
|
|
650,908
|
|
|
|
|
Total liabilities
|
|
|
19,235,469
|
|
|
|
|
|
|
18,603,750
|
|
|
|
|
Total TCF Financial Corp. stockholders' equity
|
|
|
2,431,755
|
|
|
|
|
|
|
2,307,781
|
|
|
|
|
Non-controlling interest in subsidiaries
|
|
|
21,131
|
|
|
|
|
|
|
19,224
|
|
|
|
|
Total equity
|
|
|
2,452,886
|
|
|
|
|
|
|
2,327,005
|
|
|
|
|
Total liabilities and equity
|
|
$
|
21,688,355
|
|
|
|
|
|
$
|
20,930,755
|
|
|
|
|
Net interest income and margin
|
|
|
|
$
|
225,316
|
|
4.46
|
|
|
|
|
$
|
213,784
|
|
4.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Interest and yields are presented on a fully tax-equivalent
basis.
|
(2) Annualized.
|
(3) Average balances and yields of securities available for sale are
based upon historical amortized cost and exclude equity securities.
|
(4) The yield on tax-exempt securities available for sale is
computed on a tax-equivalent basis using a statutory federal income
tax rate of 35% for all periods presented.
|
(5) Average balances of loans and leases include non-accrual loans
and leases and are presented net of unearned income.
|
(6) Includes leased equipment and related initial direct costs under
operating leases of $180.3 million and $133.6 million for the first
quarters of 2017 and 2016, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF INCOME AND FINANCIAL HIGHLIGHTS
|
(Dollars in thousands, except per-share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sep. 30,
|
|
Jun. 30,
|
|
Mar. 31,
|
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
Interest income:
|
|
|
|
|
|
|
|
|
|
|
Loans and leases
|
|
$
|
219,548
|
|
|
$
|
210,848
|
|
|
$
|
210,765
|
|
|
$
|
214,128
|
|
|
$
|
214,805
|
|
Securities available for sale
|
|
|
7,980
|
|
|
|
7,553
|
|
|
|
7,126
|
|
|
|
6,396
|
|
|
|
5,498
|
|
Securities held to maturity
|
|
|
1,280
|
|
|
|
1,165
|
|
|
|
1,049
|
|
|
|
1,116
|
|
|
|
1,319
|
|
Loans held for sale and other
|
|
|
13,499
|
|
|
|
12,092
|
|
|
|
13,786
|
|
|
|
12,364
|
|
|
|
10,720
|
|
Total interest income
|
|
|
242,307
|
|
|
|
231,658
|
|
|
|
232,726
|
|
|
|
234,004
|
|
|
|
232,342
|
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
13,715
|
|
|
|
15,053
|
|
|
|
15,851
|
|
|
|
15,893
|
|
|
|
14,991
|
|
Borrowings
|
|
|
6,478
|
|
|
|
5,159
|
|
|
|
4,857
|
|
|
|
5,127
|
|
|
|
5,693
|
|
Total interest expense
|
|
|
20,193
|
|
|
|
20,212
|
|
|
|
20,708
|
|
|
|
21,020
|
|
|
|
20,684
|
|
Net interest income
|
|
|
222,114
|
|
|
|
211,446
|
|
|
|
212,018
|
|
|
|
212,984
|
|
|
|
211,658
|
|
Provision for credit losses
|
|
|
12,193
|
|
|
|
19,888
|
|
|
|
13,894
|
|
|
|
13,250
|
|
|
|
18,842
|
|
Net interest income after provision for credit losses
|
|
|
209,921
|
|
|
|
191,558
|
|
|
|
198,124
|
|
|
|
199,734
|
|
|
|
192,816
|
|
Non-interest income:
|
|
|
|
|
|
|
|
|
|
|
Fees and service charges
|
|
|
31,282
|
|
|
|
35,132
|
|
|
|
35,093
|
|
|
|
34,622
|
|
|
|
32,817
|
|
Card revenue
|
|
|
13,150
|
|
|
|
13,689
|
|
|
|
13,747
|
|
|
|
14,083
|
|
|
|
13,363
|
|
ATM revenue
|
|
|
4,675
|
|
|
|
4,806
|
|
|
|
5,330
|
|
|
|
5,288
|
|
|
|
5,021
|
|
Subtotal
|
|
|
49,107
|
|
|
|
53,627
|
|
|
|
54,170
|
|
|
|
53,993
|
|
|
|
51,201
|
|
Gains on sales of auto loans, net
|
|
|
2,864
|
|
|
|
1,145
|
|
|
|
11,624
|
|
|
|
10,143
|
|
|
|
11,920
|
|
Gains on sales of consumer real estate loans, net
|
|
|
8,891
|
|
|
|
16,676
|
|
|
|
13,528
|
|
|
|
10,839
|
|
|
|
9,384
|
|
Servicing fee income
|
|
|
11,651
|
|
|
|
11,404
|
|
|
|
10,393
|
|
|
|
9,502
|
|
|
|
8,883
|
|
Subtotal
|
|
|
23,406
|
|
|
|
29,225
|
|
|
|
35,545
|
|
|
|
30,484
|
|
|
|
30,187
|
|
Leasing and equipment finance
|
|
|
28,298
|
|
|
|
31,316
|
|
|
|
28,289
|
|
|
|
31,074
|
|
|
|
28,487
|
|
Other
|
|
|
2,703
|
|
|
|
1,365
|
|
|
|
2,270
|
|
|
|
2,405
|
|
|
|
2,843
|
|
Fees and other revenue
|
|
|
103,514
|
|
|
|
115,533
|
|
|
|
120,274
|
|
|
|
117,956
|
|
|
|
112,718
|
|
Gains (losses) on securities, net
|
|
|
-
|
|
|
|
135
|
|
|
|
(600
|
)
|
|
|
-
|
|
|
|
(116
|
)
|
Total non-interest income
|
|
|
103,514
|
|
|
|
115,668
|
|
|
|
119,674
|
|
|
|
117,956
|
|
|
|
112,602
|
|
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
|
Compensation and employee benefits
|
|
|
124,477
|
|
|
|
115,001
|
|
|
|
117,155
|
|
|
|
118,093
|
|
|
|
124,473
|
|
Occupancy and equipment
|
|
|
39,600
|
|
|
|
38,150
|
|
|
|
37,938
|
|
|
|
36,884
|
|
|
|
37,008
|
|
Other
|
|
|
64,037
|
|
|
|
59,235
|
|
|
|
59,421
|
|
|
|
59,416
|
|
|
|
53,348
|
|
Subtotal
|
|
|
228,114
|
|
|
|
212,386
|
|
|
|
214,514
|
|
|
|
214,393
|
|
|
|
214,829
|
|
Operating lease depreciation
|
|
|
11,242
|
|
|
|
10,906
|
|
|
|
10,038
|
|
|
|
9,842
|
|
|
|
9,573
|
|
Foreclosed real estate and repossessed assets, net
|
|
|
4,549
|
|
|
|
1,889
|
|
|
|
4,243
|
|
|
|
3,135
|
|
|
|
3,920
|
|
Other credit costs, net
|
|
|
101
|
|
|
|
178
|
|
|
|
83
|
|
|
|
(54
|
)
|
|
|
12
|
|
Total non-interest expense
|
|
|
244,006
|
|
|
|
225,359
|
|
|
|
228,878
|
|
|
|
227,316
|
|
|
|
228,334
|
|
Income before income tax expense
|
|
|
69,429
|
|
|
|
81,867
|
|
|
|
88,920
|
|
|
|
90,374
|
|
|
|
77,084
|
|
Income tax expense
|
|
|
20,843
|
|
|
|
29,762
|
|
|
|
30,257
|
|
|
|
29,706
|
|
|
|
26,803
|
|
Income after income tax expense
|
|
|
48,586
|
|
|
|
52,105
|
|
|
|
58,663
|
|
|
|
60,668
|
|
|
|
50,281
|
|
Income attributable to non-controlling interest
|
|
|
2,308
|
|
|
|
2,013
|
|
|
|
2,371
|
|
|
|
2,974
|
|
|
|
2,235
|
|
Net income attributable to TCF Financial Corporation
|
|
|
46,278
|
|
|
|
50,092
|
|
|
|
56,292
|
|
|
|
57,694
|
|
|
|
48,046
|
|
Preferred stock dividends
|
|
|
4,847
|
|
|
|
4,847
|
|
|
|
4,847
|
|
|
|
4,847
|
|
|
|
4,847
|
|
Net income available to common stockholders
|
|
$
|
41,431
|
|
|
$
|
45,245
|
|
|
$
|
51,445
|
|
|
$
|
52,847
|
|
|
$
|
43,199
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.25
|
|
|
$
|
0.27
|
|
|
$
|
0.31
|
|
|
$
|
0.32
|
|
|
$
|
0.26
|
|
Diluted
|
|
|
0.25
|
|
|
|
0.27
|
|
|
|
0.31
|
|
|
|
0.31
|
|
|
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share
|
|
$
|
0.075
|
|
|
$
|
0.075
|
|
|
$
|
0.075
|
|
|
$
|
0.075
|
|
|
$
|
0.075
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial highlights:(1)
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
|
|
|
0.90
|
%
|
|
|
0.99
|
%
|
|
|
1.12
|
%
|
|
|
1.14
|
%
|
|
|
0.96
|
%
|
Return on average common equity
|
|
|
7.64
|
|
|
|
8.40
|
|
|
|
9.59
|
|
|
|
10.09
|
|
|
|
8.45
|
|
Net interest margin
|
|
|
4.46
|
|
|
|
4.30
|
|
|
|
4.34
|
|
|
|
4.35
|
|
|
|
4.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Annualized.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED QUARTERLY AVERAGE BALANCE SHEETS
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar. 31, 2017
|
|
Dec. 31, 2016
|
|
Sep. 30, 2016
|
|
Jun. 30, 2016
|
|
Mar. 31, 2016
|
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
Investments and other
|
|
$
|
286,519
|
|
$
|
276,018
|
|
$
|
331,107
|
|
$
|
322,477
|
|
$
|
349,079
|
Securities held to maturity
|
|
|
177,939
|
|
|
182,177
|
|
|
187,414
|
|
|
194,693
|
|
|
199,303
|
Securities available for sale:(1)
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
815,867
|
|
|
791,289
|
|
|
747,890
|
|
|
697,902
|
|
|
640,796
|
Tax-exempt
|
|
|
640,826
|
|
|
610,070
|
|
|
570,013
|
|
|
481,246
|
|
|
319,427
|
Loans and leases held for sale
|
|
|
464,301
|
|
|
492,457
|
|
|
558,649
|
|
|
497,797
|
|
|
367,686
|
Loans and leases:(2)
|
|
|
|
|
|
|
|
|
|
|
Consumer real estate:
|
|
|
|
|
|
|
|
|
|
|
Fixed-rate
|
|
|
2,083,472
|
|
|
2,169,493
|
|
|
2,216,945
|
|
|
2,327,409
|
|
|
2,430,773
|
Variable- and adjustable-rate
|
|
|
2,945,529
|
|
|
2,916,653
|
|
|
2,918,631
|
|
|
2,931,318
|
|
|
3,028,001
|
Total consumer real estate
|
|
|
5,029,001
|
|
|
5,086,146
|
|
|
5,135,576
|
|
|
5,258,727
|
|
|
5,458,774
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
Fixed-rate
|
|
|
1,000,316
|
|
|
948,856
|
|
|
944,347
|
|
|
982,914
|
|
|
1,012,870
|
Variable- and adjustable-rate
|
|
|
2,302,575
|
|
|
2,198,661
|
|
|
2,147,768
|
|
|
2,127,032
|
|
|
2,145,231
|
Total commercial
|
|
|
3,302,891
|
|
|
3,147,517
|
|
|
3,092,115
|
|
|
3,109,946
|
|
|
3,158,101
|
Leasing and equipment finance
|
|
|
4,285,944
|
|
|
4,252,543
|
|
|
4,147,488
|
|
|
4,032,112
|
|
|
3,992,678
|
Inventory finance
|
|
|
2,696,787
|
|
|
2,389,980
|
|
|
2,272,409
|
|
|
2,564,648
|
|
|
2,433,534
|
Auto finance
|
|
|
2,714,862
|
|
|
2,647,088
|
|
|
2,670,272
|
|
|
2,751,679
|
|
|
2,703,880
|
Other
|
|
|
9,740
|
|
|
9,307
|
|
|
9,252
|
|
|
9,585
|
|
|
10,018
|
Total loans and leases
|
|
|
18,039,225
|
|
|
17,532,581
|
|
|
17,327,112
|
|
|
17,726,697
|
|
|
17,756,985
|
Total interest-earning assets
|
|
|
20,424,677
|
|
|
19,884,592
|
|
|
19,722,185
|
|
|
19,920,812
|
|
|
19,633,276
|
Other assets(3)
|
|
|
1,263,678
|
|
|
1,253,002
|
|
|
1,303,670
|
|
|
1,286,506
|
|
|
1,297,479
|
Total assets
|
|
$
|
21,688,355
|
|
$
|
21,137,594
|
|
$
|
21,025,855
|
|
$
|
21,207,318
|
|
$
|
20,930,755
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY:
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
1,880,298
|
|
$
|
1,773,673
|
|
$
|
1,771,840
|
|
$
|
1,817,734
|
|
$
|
1,751,710
|
Small business
|
|
|
894,845
|
|
|
926,388
|
|
|
894,761
|
|
|
861,394
|
|
|
853,645
|
Commercial and custodial
|
|
|
626,081
|
|
|
615,686
|
|
|
583,430
|
|
|
582,041
|
|
|
560,983
|
Total non-interest bearing deposits
|
|
|
3,401,224
|
|
|
3,315,747
|
|
|
3,250,031
|
|
|
3,261,169
|
|
|
3,166,338
|
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
Checking
|
|
|
2,530,281
|
|
|
2,454,815
|
|
|
2,434,934
|
|
|
2,478,673
|
|
|
2,440,563
|
Savings
|
|
|
4,756,486
|
|
|
4,670,906
|
|
|
4,661,565
|
|
|
4,677,681
|
|
|
4,700,164
|
Money market
|
|
|
2,385,353
|
|
|
2,429,239
|
|
|
2,496,590
|
|
|
2,557,897
|
|
|
2,472,751
|
Certificates of deposit
|
|
|
4,033,143
|
|
|
4,198,190
|
|
|
4,304,990
|
|
|
4,308,367
|
|
|
4,104,951
|
Total interest-bearing deposits
|
|
|
13,705,263
|
|
|
13,753,150
|
|
|
13,898,079
|
|
|
14,022,618
|
|
|
13,718,429
|
Total deposits
|
|
|
17,106,487
|
|
|
17,068,897
|
|
|
17,148,110
|
|
|
17,283,787
|
|
|
16,884,767
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
|
4,628
|
|
|
5,063
|
|
|
8,485
|
|
|
9,100
|
|
|
5,562
|
Long-term borrowings
|
|
|
1,459,053
|
|
|
931,720
|
|
|
729,737
|
|
|
840,739
|
|
|
1,062,513
|
Total borrowings
|
|
|
1,463,681
|
|
|
936,783
|
|
|
738,222
|
|
|
849,839
|
|
|
1,068,075
|
Total interest-bearing liabilities
|
|
|
15,168,944
|
|
|
14,689,933
|
|
|
14,636,301
|
|
|
14,872,457
|
|
|
14,786,504
|
Total deposits and borrowings
|
|
|
18,570,168
|
|
|
18,005,680
|
|
|
17,886,332
|
|
|
18,133,626
|
|
|
17,952,842
|
Other liabilities
|
|
|
665,301
|
|
|
695,778
|
|
|
708,048
|
|
|
690,363
|
|
|
650,908
|
Total liabilities
|
|
|
19,235,469
|
|
|
18,701,458
|
|
|
18,594,380
|
|
|
18,823,989
|
|
|
18,603,750
|
Total TCF Financial Corporation stockholders' equity
|
|
|
2,431,755
|
|
|
2,417,222
|
|
|
2,409,312
|
|
|
2,357,509
|
|
|
2,307,781
|
Non-controlling interest in subsidiaries
|
|
|
21,131
|
|
|
18,914
|
|
|
22,163
|
|
|
25,820
|
|
|
19,224
|
Total equity
|
|
|
2,452,886
|
|
|
2,436,136
|
|
|
2,431,475
|
|
|
2,383,329
|
|
|
2,327,005
|
Total liabilities and equity
|
|
$
|
21,688,355
|
|
$
|
21,137,594
|
|
$
|
21,025,855
|
|
$
|
21,207,318
|
|
$
|
20,930,755
|
|
(1) Average balances of securities available for sale are based upon
historical amortized cost and exclude equity securities.
|
(2) Average balances of loans and leases include non-accrual loans
and leases and are presented net of unearned income.
|
(3) Includes leased equipment and related initial direct costs under
operating leases of $180.3 million, $157.2 million, $138.2 million,
$131.9 million and $133.6 million for the first quarter of 2017, and
for the fourth quarter, third quarter, second quarter and first
quarter of 2016, respectively.
|
|
|
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED QUARTERLY YIELDS AND RATES(1)(2)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar. 31, 2017
|
|
Dec. 31, 2016
|
|
Sep. 30, 2016
|
|
Jun. 30, 2016
|
|
Mar. 31, 2016
|
ASSETS:
|
|
|
|
|
|
|
|
|
Investments and other
|
|
3.88
|
%
|
|
3.35
|
%
|
|
2.86
|
%
|
|
2.99
|
%
|
|
2.55
|
%
|
Securities held to maturity
|
|
2.88
|
|
|
2.56
|
|
|
2.24
|
|
|
2.29
|
|
|
2.65
|
|
Securities available for sale:(3)
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
2.28
|
|
|
2.22
|
|
|
2.23
|
|
|
2.21
|
|
|
2.38
|
|
Tax-exempt(4)
|
|
3.19
|
|
|
3.18
|
|
|
3.19
|
|
|
3.25
|
|
|
3.24
|
|
Loans and leases held for sale
|
|
9.39
|
|
|
7.89
|
|
|
8.12
|
|
|
8.05
|
|
|
9.30
|
|
Loans and leases:
|
|
|
|
|
|
|
|
|
|
|
Consumer real estate:
|
|
|
|
|
|
|
|
|
|
|
Fixed-rate
|
|
5.70
|
|
|
5.57
|
|
|
5.75
|
|
|
5.73
|
|
|
5.82
|
|
Variable- and adjustable rate
|
|
5.54
|
|
|
5.36
|
|
|
5.29
|
|
|
5.32
|
|
|
5.32
|
|
Total consumer real estate
|
|
5.60
|
|
|
5.45
|
|
|
5.49
|
|
|
5.50
|
|
|
5.54
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
Fixed-rate
|
|
4.75
|
|
|
4.70
|
|
|
4.92
|
|
|
4.96
|
|
|
4.94
|
|
Variable- and adjustable-rate
|
|
4.30
|
|
|
4.05
|
|
|
3.91
|
|
|
4.00
|
|
|
4.00
|
|
Total commercial
|
|
4.43
|
|
|
4.25
|
|
|
4.22
|
|
|
4.30
|
|
|
4.30
|
|
Leasing and equipment finance
|
|
4.48
|
|
|
4.43
|
|
|
4.48
|
|
|
4.45
|
|
|
4.47
|
|
Inventory finance
|
|
5.93
|
|
|
5.80
|
|
|
6.07
|
|
|
5.74
|
|
|
5.68
|
|
Auto finance
|
|
4.15
|
|
|
4.04
|
|
|
4.06
|
|
|
4.19
|
|
|
4.14
|
|
Other
|
|
5.44
|
|
|
5.72
|
|
|
5.85
|
|
|
5.77
|
|
|
5.63
|
|
Total loans and leases
|
|
4.95
|
|
|
4.82
|
|
|
4.88
|
|
|
4.88
|
|
|
4.89
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-earning assets
|
|
4.86
|
|
|
4.70
|
|
|
4.76
|
|
|
4.77
|
|
|
4.80
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
Checking
|
|
0.01
|
|
|
0.01
|
|
|
0.01
|
|
|
0.02
|
|
|
0.01
|
|
Savings
|
|
0.04
|
|
|
0.04
|
|
|
0.03
|
|
|
0.03
|
|
|
0.03
|
|
Money market
|
|
0.50
|
|
|
0.57
|
|
|
0.61
|
|
|
0.63
|
|
|
0.62
|
|
Certificates of deposit
|
|
1.02
|
|
|
1.05
|
|
|
1.07
|
|
|
1.07
|
|
|
1.05
|
|
Total interest-bearing deposits
|
|
0.41
|
|
|
0.44
|
|
|
0.45
|
|
|
0.46
|
|
|
0.44
|
|
Total deposits
|
|
0.33
|
|
|
0.35
|
|
|
0.37
|
|
|
0.37
|
|
|
0.36
|
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
0.65
|
|
|
0.77
|
|
|
0.86
|
|
|
0.71
|
|
|
0.53
|
|
Long-term borrowings
|
|
1.78
|
|
|
2.21
|
|
|
2.65
|
|
|
2.43
|
|
|
2.14
|
|
Total borrowings
|
|
1.78
|
|
|
2.20
|
|
|
2.63
|
|
|
2.42
|
|
|
2.13
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities
|
|
0.54
|
|
|
0.55
|
|
|
0.56
|
|
|
0.57
|
|
|
0.56
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
|
|
4.46
|
|
|
4.30
|
|
|
4.34
|
|
|
4.35
|
|
|
4.37
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Annualized.
|
(2) Yields are presented on a fully tax-equivalent basis.
|
(3) Average yields of securities available for sale are based upon
historical amortized cost and exclude equity securities.
|
(4) The yield on tax-exempt securities available for sale is
computed on a tax-equivalent basis using a statutory federal income
tax rate of 35% for all periods presented.
|
|
|
|
|
|
|
|
|
|
|
|
TCF FINANCIAL CORPORATION AND SUBSIDIARIES RECONCILIATION
OF GAAP TO NON-GAAP FINANCIAL MEASURES(1) (Dollars
in thousands) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
At Mar. 31,
|
|
At Dec. 31,
|
|
|
|
|
2017
|
|
2016
|
Computation of tangible common equity to
tangible assets and tangible book value per common share:
|
|
Total equity
|
|
|
|
$
|
2,490,663
|
|
|
$
|
2,444,645
|
|
Less: Non-controlling interest in subsidiaries
|
|
|
|
|
26,551
|
|
|
|
17,162
|
|
Total TCF Financial Corporation stockholders' equity
|
|
|
|
|
2,464,112
|
|
|
|
2,427,483
|
|
Less: Preferred stock
|
|
|
|
|
263,240
|
|
|
|
263,240
|
|
Total common stockholders' equity
|
|
(a)
|
|
|
2,200,872
|
|
|
|
2,164,243
|
|
Less:
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
|
225,640
|
|
|
|
225,640
|
|
Other intangibles
|
|
|
|
|
1,615
|
|
|
|
1,738
|
|
Tangible common equity
|
|
(b)
|
|
$
|
1,973,617
|
|
|
$
|
1,936,865
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
(c)
|
|
$
|
21,836,568
|
|
|
$
|
21,441,326
|
|
Less:
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
|
225,640
|
|
|
|
225,640
|
|
Other intangibles
|
|
|
|
|
1,615
|
|
|
|
1,738
|
|
Tangible assets
|
|
(d)
|
|
$
|
21,609,313
|
|
|
$
|
21,213,948
|
|
|
|
|
|
|
|
|
|
Common stock shares outstanding
|
|
(e)
|
|
|
170,941,262
|
|
|
|
170,991,940
|
|
|
|
|
|
|
|
|
|
Common equity to assets
|
|
(a) / (c)
|
|
|
10.08
|
%
|
|
|
10.09
|
%
|
Tangible common equity to tangible assets
|
|
(b) / (d)
|
|
|
9.13
|
%
|
|
|
9.13
|
%
|
|
|
|
|
|
|
|
|
Book value per common share
|
|
(a) / (e)
|
|
$
|
12.88
|
|
|
$
|
12.66
|
|
Tangible book value per common share
|
|
(b) / (e)
|
|
$
|
11.55
|
|
|
$
|
11.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Mar. 31,
|
|
|
|
|
2017
|
|
2016
|
|
2016
|
Computation of return on average tangible
common equity:
|
|
|
|
|
|
|
|
|
Net income available to common stockholders
|
|
(f)
|
|
$
|
41,431
|
|
|
$
|
45,245
|
|
|
$
|
43,199
|
|
Plus: Other intangibles amortization
|
|
|
|
|
123
|
|
|
|
290
|
|
|
|
366
|
|
Less: Income tax expense attributable to other intangibles
amortization
|
|
|
|
|
42
|
|
|
|
103
|
|
|
|
131
|
|
Adjusted net income available to common stockholders
|
|
(g)
|
|
$
|
41,512
|
|
|
$
|
45,432
|
|
|
$
|
43,434
|
|
|
|
|
|
|
|
|
|
|
Average balances:
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
$
|
2,452,886
|
|
|
$
|
2,436,136
|
|
|
$
|
2,327,005
|
|
Less: Non-controlling interest in subsidiaries
|
|
|
|
|
21,131
|
|
|
|
18,914
|
|
|
|
19,224
|
|
Total TCF Financial Corporation stockholders' equity
|
|
|
|
|
2,431,755
|
|
|
|
2,417,222
|
|
|
|
2,307,781
|
|
Less: Preferred stock
|
|
|
|
|
263,240
|
|
|
|
263,240
|
|
|
|
263,240
|
|
Average total common stockholders' equity
|
|
(h)
|
|
|
2,168,515
|
|
|
|
2,153,982
|
|
|
|
2,044,541
|
|
Less:
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
|
225,640
|
|
|
|
225,640
|
|
|
|
225,640
|
|
Other intangibles
|
|
|
|
|
1,675
|
|
|
|
1,872
|
|
|
|
2,966
|
|
Average tangible common equity
|
|
(i)
|
|
$
|
1,941,200
|
|
|
$
|
1,926,470
|
|
|
$
|
1,815,935
|
|
|
|
|
|
|
|
|
|
|
Return on average common equity(2)
|
|
(f) / (h)
|
|
|
7.64
|
%
|
|
|
8.40
|
%
|
|
|
8.45
|
%
|
Return on average tangible common equity(2)
|
|
(g) / (i)
|
|
|
8.55
|
%
|
|
|
9.43
|
%
|
|
|
9.57
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) When evaluating capital adequacy and utilization, management
considers financial measures such as tangible common equity to
tangible assets, tangible book value per common share and return on
average tangible common equity. These measures are non-GAAP
financial measures and are viewed by management as useful indicators
of capital levels available to withstand unexpected market or
economic conditions and also provide investors, regulators and other
users with information to be viewed in relation to other banking
institutions.
|
(2) Annualized.
|
|
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