2016 HIGHLIGHTS
- Revenue of $1.3 billion, up 4.1 percent from 2015
- Non-interest expense of $909.9 million, up 1.7 percent from 2015
- Efficiency ratio of 69.25 percent, down 163 basis points from 2015
- Period-end loans and leases of $17.8 billion, up 2.3 percent from
December 31, 2015
- Loan and lease originations of $16.8 billion, up 10.3 percent from 2015
- Average deposits of $17.1 billion, up 7.2 percent from 2015
- Non-accrual loans and leases of $181.4 million, down 9.5 percent from
December 31, 2015
- Net charge-offs as a percentage of average loans and leases of 0.26
percent, down 4 basis points from 2015
- Earnings per share of $1.15, up 7.5 percent from 2015
FOURTH QUARTER HIGHLIGHTS
- Revenue of $327.1 million, up 1.8 percent from the fourth quarter of
2015
- Non-interest expense of $225.4 million, up 1.2 percent from the fourth
quarter of 2015
- Efficiency ratio of 68.89 percent, down 38 basis points from the
fourth quarter of 2015
- Loan and lease originations of $4.3 billion, up 11.4 percent from the
fourth quarter of 2015
- Average deposits of $17.1 billion, up 4.8 percent from the fourth
quarter of 2015
- Net charge-offs as a percentage of average loans and leases of 0.27
percent, down 2 basis points from the fourth quarter of 2015
- Earnings per share of 27 cents, down 6.9 percent from the fourth
quarter of 2015
Company Website:
http://ir.tcfbank.com
WAYZATA, Minn. -- (Business Wire)
TCF Financial Corporation (NYSE:TCB):
|
Summary of Financial Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Table 1 |
|
|
| |
|
| |
|
| |
|
| Percent Change |
|
| |
|
| |
|
| |
(Dollars in thousands, except per-share data)
| | | 4Q | | | 3Q | | | 4Q | | | 4Q16 vs |
|
| 4Q16 vs | | | YTD | | | YTD | | | Percent |
| | | 2016 |
|
| 2016 |
|
| 2015 |
|
| 3Q16 |
|
| 4Q15 |
|
| 2016 |
|
| 2015 |
|
| Change |
Net income attributable to TCF
| | |
$
|
50,092
| | | |
$
|
56,292
| | | |
$
|
52,492
| | | |
(11.0
|
)%
| | |
(4.6
|
)%
| | |
$
|
212,124
| | | |
$
|
197,123
| | | |
7.6
|
%
|
Net interest income
| | |
211,446
| | | |
212,018
| | | |
205,669
| | | |
(0.3
|
)
| | |
2.8
| | | |
848,106
| | | |
820,388
| | | |
3.4
| |
Diluted earnings per common share
| | |
0.27
| | | |
0.31
| | | |
0.29
| | | |
(12.9
|
)
| | |
(6.9
|
)
| | |
1.15
| | | |
1.07
| | | |
7.5
| |
| | | | | | | | | | | | | | | | | | | | | | | |
|
Financial Ratios(1) | | | | | | | | | | | | | | | | | | | | | | | | |
Return on average assets
| | |
0.99
|
%
| | |
1.12
|
%
| | |
1.08
|
%
| | | | | | | | |
1.05
|
%
| | |
1.03
|
%
| | | |
Return on average common equity
| | |
8.40
| | | |
9.59
| | | |
9.53
| | | | | | | | | |
9.13
| | | |
9.19
| | | | |
Return on average tangible common equity(2) | | |
9.43
| | | |
10.78
| | | |
10.82
| | | | | | | | | |
10.29
| | | |
10.48
| | | | |
Net interest margin
| | |
4.30
| | | |
4.34
| | | |
4.35
| | | | | | | | | |
4.34
| | | |
4.42
| | | | |
Net charge-offs as a percentage of average loans and leases
| | |
0.27
| | | |
0.26
| | | |
0.29
| | | | | | | | | |
0.26
| | | |
0.30
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
(1) Annualized.
| | | | | | | | | |
(2) See "Reconciliation of GAAP to Non-GAAP Financial Measures"
table.
|
|
|
|
|
|
|
|
|
|
| | | | | | | | |
|
TCF Financial Corporation ("TCF" or the "Company") (NYSE:TCB) today
reported net income of $50.1 million for the fourth quarter of 2016,
compared with $52.5 million for the fourth quarter of 2015 and $56.3
million for the third quarter of 2016. Diluted earnings per common share
was 27 cents for the fourth quarter of 2016, compared with 29 cents for
the fourth quarter of 2015 and 31 cents for the third quarter of 2016.
TCF reported net income of $212.1 million for the year ended
December 31, 2016, compared with $197.1 million for the same period in
2015. Diluted earnings per common share was $1.15 for the year ended
December 31, 2016, compared with $1.07 for the same period in 2015.
"I am proud of the progress we have made and the successes we have
achieved during 2016," said Craig R. Dahl, president and chief executive
officer. "We took significant strides toward driving the Company forward
in ways that align with our four strategic pillars. Execution of our
diversification philosophy has resulted in strong performance from a
credit quality perspective. Our unique loan and lease origination
capabilities allow us to grow profitably in a variety of markets. We
generated positive operating leverage throughout the year as revenue
growth steadily outpaced expense growth. We also continued to expand our
deposit base which will be very beneficial should interest rates
continue to increase.
"While our long term results will continue to be driven by these four
strategic pillars, market volatility and softness in the auto lending
industry provided some near term headwinds. As we move forward into
2017, there is much to be excited about. Our focus will be on taking the
next step in creating superior and sustainable financial performance. We
can do this by optimizing our diverse loan and lease origination
platforms to grow in areas that will continue to drive profitability. In
addition, we will look to create new efficiencies throughout the
organization while offering product and service solutions that meet the
financial needs of our customers."
Revenue |
|
Total Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Table 2 |
|
|
| Percent Change |
|
| |
(Dollars in thousands)
|
|
| 4Q |
|
| 3Q |
|
| 4Q | | | 4Q16 vs |
|
| 4Q16 vs | | | YTD |
|
| YTD |
|
| Percent |
| | | 2016 |
|
| 2016 |
|
| 2015 |
|
| 3Q16 |
|
| 4Q15 |
|
| 2016 |
|
| 2015 |
|
| Change |
Net interest income
| | |
$
|
211,446
|
|
|
|
$
|
212,018
|
|
|
|
$
|
205,669
|
| | |
(0.3
|
)%
| | |
2.8
|
%
| | |
$
|
848,106
|
|
|
|
$
|
820,388
|
| | |
3.4
|
%
|
Non-interest income:
| | | | | | | | | | | | | | | | | | | | | | | | |
Fees and service charges
| | |
35,132
| | | |
35,093
| | | |
37,741
| | | |
0.1
| | | |
(6.9
|
)
| | |
137,664
| | | |
144,999
| | | |
(5.1
|
)
|
Card revenue
| | |
13,689
| | | |
13,747
| | | |
13,781
| | | |
(0.4
|
)
| | |
(0.7
|
)
| | |
54,882
| | | |
54,387
| | | |
0.9
| |
ATM revenue
| | |
4,806
|
|
|
|
5,330
|
|
|
|
5,143
|
| | |
(9.8
|
)
| | |
(6.6
|
)
| | |
20,445
|
|
|
|
21,544
|
| | |
(5.1
|
)
|
Subtotal
| | |
53,627
| | | |
54,170
| | | |
56,665
| | | |
(1.0
|
)
| | |
(5.4
|
)
| | |
212,991
| | | |
220,930
| | | |
(3.6
|
)
|
Gains on sales of auto loans, net
| | |
1,145
| | | |
11,624
| | | |
3,136
| | | |
(90.1
|
)
| | |
(63.5
|
)
| | |
34,832
| | | |
30,580
| | | |
13.9
| |
Gains on sales of consumer real estate loans, net
| | |
16,676
| | | |
13,528
| | | |
13,104
| | | |
23.3
| | | |
27.3
| | | |
50,427
| | | |
40,964
| | | |
23.1
| |
Servicing fee income
| | |
11,404
|
|
|
|
10,393
|
|
|
|
8,622
|
| | |
9.7
| | | |
32.3
| | | |
40,182
|
|
|
|
31,229
|
| | |
28.7
| |
Subtotal
| | |
29,225
| | | |
35,545
| | | |
24,862
| | | |
(17.8
|
)
| | |
17.5
| | | |
125,441
| | | |
102,773
| | | |
22.1
| |
Leasing and equipment finance
| | |
31,316
| | | |
28,289
| | | |
32,355
| | | |
10.7
| | | |
(3.2
|
)
| | |
119,166
| | | |
108,129
| | | |
10.2
| |
Other
| | |
1,365
|
|
|
|
2,270
|
|
|
|
1,806
|
| | |
(39.9
|
)
| | |
(24.4
|
)
| | |
8,883
|
|
|
|
10,463
|
| | |
(15.1
|
)
|
Fees and other revenue
| | |
115,533
| | | |
120,274
| | | |
115,688
| | | |
(3.9
|
)
| | |
(0.1
|
)
| | |
466,481
| | | |
442,295
| | | |
5.5
| |
Gains (losses) on securities, net
| | |
135
|
|
|
|
(600
|
)
|
|
|
(29
|
)
| | |
N.M.
| | |
N.M.
| | |
(581
|
)
|
|
|
(297
|
)
| | |
(95.6
|
)
|
Total non-interest income
| | |
115,668
|
|
|
|
119,674
|
|
|
|
115,659
|
| | |
(3.3
|
)
| | |
—
| | | |
465,900
|
|
|
|
441,998
|
| | |
5.4
| |
Total revenue
| | |
$
|
327,114
|
|
|
|
$
|
331,692
|
|
|
|
$
|
321,328
|
| | |
(1.4
|
)
| | |
1.8
| | | |
$
|
1,314,006
|
|
|
|
$
|
1,262,386
|
| | |
4.1
| |
| | | | | | | | | | | | | | | | | | | | | | | |
|
Net interest margin(1) | | |
4.30
|
%
| | |
4.34
|
%
| | |
4.35
|
%
| | | | | | | | |
4.34
|
%
| | |
4.42
|
%
| | | |
Total non-interest income as a percentage of total revenue
| | |
35.4
| | | |
36.1
| | | |
36.0
| | | | | | | | | |
35.5
| | | |
35.0
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
N.M. Not Meaningful.
| | | | | | | | | | | | | | | | | | | | | | | | |
(1) Annualized.
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income
-
Net interest income for the fourth quarter of 2016 increased $5.8
million, or 2.8 percent, compared with the fourth quarter of 2015 and
was consistent with the third quarter of 2016. The increase from the
fourth quarter of 2015 was primarily due to higher average balances of
loans and leases held for sale, leasing and equipment finance loans
and leases, inventory finance loans and securities available for sale.
These increases were partially offset by lower average consumer real
estate loan balances and a lower average yield on the overall loan and
lease portfolio. Net interest income for the fourth quarter of 2016
was consistent with the third quarter of 2016 due to growth in the
inventory finance and leasing and equipment finance portfolios, offset
by a lower average yield on the overall loan and lease portfolio.
-
Net interest margin for the fourth quarter of 2016 was 4.30 percent,
compared with 4.35 percent for the fourth quarter of 2015 and 4.34
percent for the third quarter of 2016. The decrease from the fourth
quarter of 2015 was primarily due to lower yields on commercial loans,
leasing and equipment finance loans and leases, auto finance loans and
loans and leases held for sale. The decrease from the third quarter of
2016 was primarily due to lower yields on inventory finance loans.
Non-interest Income
-
Fees and service charges for the fourth quarter of 2016 were $35.1
million, down $2.6 million, or 6.9 percent, from the fourth quarter of
2015 and consistent with the third quarter of 2016. The decrease from
the fourth quarter of 2015 was primarily due to ongoing consumer
behavior changes, as well as higher average checking account balances
per customer.
-
TCF sold $516.0 million, $271.1 million and $614.9 million of auto
loans during the fourth quarters of 2016 and 2015 and the third
quarter of 2016, respectively, resulting in net gains in each
respective period.
-
TCF sold $520.8 million, $389.1 million and $437.1 million of consumer
real estate loans during the fourth quarters of 2016 and 2015 and the
third quarter of 2016, respectively, resulting in net gains in each
respective period.
-
Servicing fee income was $11.4 million on $5.5 billion of average
loans and leases serviced for others for the fourth quarter of 2016,
compared with $8.6 million on $4.2 billion for the fourth quarter of
2015 and $10.4 million on $5.1 billion for the third quarter of 2016.
Loans and Leases |
|
| |
|
| |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-End and Average Loans and Leases |
|
|
|
|
|
|
|
|
|
| Table 3 |
|
|
| |
|
| |
|
| |
|
| Percent Change | | | | | | | | | |
(Dollars in thousands)
| | | 4Q | | | 3Q | | | 4Q | | | 4Q16 vs | |
| 4Q16 vs | | | YTD | | | YTD | | | Percent |
| | | 2016 |
|
| 2016 |
|
| 2015 |
|
| 3Q16 |
|
| 4Q15 |
|
| 2016 |
|
| 2015 |
|
| Change |
Period-End: | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer real estate:
| | | | | | | | | | | | | | | | | | | | | | | | |
First mortgage lien
| | |
$
|
2,292,596
| | | |
$
|
2,313,044
| | | |
$
|
2,624,956
| | | |
(0.9
|
)%
| | |
(12.7
|
)%
| | | | | | | | | |
Junior lien
| | |
2,791,756
|
|
|
|
2,674,280
|
|
|
|
2,839,316
|
| | |
4.4
| | | |
(1.7
|
)
| | | | | | | | | |
Total consumer real estate
| | |
5,084,352
| | | |
4,987,324
| | | |
5,464,272
| | | |
1.9
| | | |
(7.0
|
)
| | | | | | | | | |
Commercial
| | |
3,286,478
| | | |
3,150,199
| | | |
3,145,832
| | | |
4.3
| | | |
4.5
| | | | | | | | | | |
Leasing and equipment finance
| | |
4,336,310
| | | |
4,236,224
| | | |
4,012,248
| | | |
2.4
| | | |
8.1
| | | | | | | | | | |
Inventory finance
| | |
2,470,175
| | | |
2,261,086
| | | |
2,146,754
| | | |
9.2
| | | |
15.1
| | | | | | | | | | |
Auto finance
| | |
2,647,741
| | | |
2,731,900
| | | |
2,647,596
| | | |
(3.1
|
)
| | |
—
| | | | | | | | | | |
Other
| | |
18,771
|
|
|
|
17,886
|
|
|
|
19,297
|
| | |
4.9
| | | |
(2.7
|
)
| | | | | | | | | |
Total
| | |
$
|
17,843,827
|
|
|
|
$
|
17,384,619
|
|
|
|
$
|
17,435,999
|
| | |
2.6
| | | |
2.3
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
Average: | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer real estate:
| | | | | | | | | | | | | | | | | | | | | | | | |
First mortgage lien
| | |
$
|
2,306,421
| | | |
$
|
2,353,097
| | | |
$
|
2,670,355
| | | |
(2.0
|
)%
| | |
(13.6
|
)%
| | |
$
|
2,424,013
| | | |
$
|
2,867,948
| | | |
(15.5
|
)%
|
Junior lien
| | |
2,779,725
|
|
|
|
2,782,479
|
|
|
|
2,934,169
|
| | |
(0.1
|
)
| | |
(5.3
|
)
| | |
2,810,116
|
|
|
|
2,754,253
|
| | |
2.0
| |
Total consumer real estate
| | |
5,086,146
| | | |
5,135,576
| | | |
5,604,524
| | | |
(1.0
|
)
| | |
(9.2
|
)
| | |
5,234,129
| | | |
5,622,201
| | | |
(6.9
|
)
|
Commercial
| | |
3,147,517
| | | |
3,092,115
| | | |
3,117,983
| | | |
1.8
| | | |
0.9
| | | |
3,126,881
| | | |
3,134,428
| | | |
(0.2
|
)
|
Leasing and equipment finance
| | |
4,252,543
| | | |
4,147,488
| | | |
3,911,025
| | | |
2.5
| | | |
8.7
| | | |
4,106,718
| | | |
3,804,015
| | | |
8.0
| |
Inventory finance
| | |
2,389,980
| | | |
2,272,409
| | | |
2,180,534
| | | |
5.2
| | | |
9.6
| | | |
2,414,684
| | | |
2,154,357
| | | |
12.1
| |
Auto finance
| | |
2,647,088
| | | |
2,670,272
| | | |
2,514,923
| | | |
(0.9
|
)
| | |
5.3
| | | |
2,693,041
| | | |
2,278,617
| | | |
18.2
| |
Other
| | |
9,307
|
|
|
|
9,252
|
|
|
|
9,060
|
| | |
0.6
| | | |
2.7
| | | |
9,538
|
|
|
|
10,303
|
| | |
(7.4
|
)
|
Total
| | |
$
|
17,532,581
|
|
|
|
$
|
17,327,112
|
|
|
|
$
|
17,338,049
|
| | |
1.2
| | | |
1.1
| | | |
$
|
17,584,991
|
|
|
|
$
|
17,003,921
|
| | |
3.4
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Period-end loans and leases were $17.8 billion at December 31, 2016,
an increase of $0.4 billion, or 2.3 percent, compared with
December 31, 2015 and an increase of $0.5 billion, or 2.6 percent,
compared with September 30, 2016. Average loans and leases were $17.5
billion for the fourth quarter of 2016, an increase of $0.2 billion,
or 1.1 percent, compared with the fourth quarter of 2015 and an
increase of $0.2 billion, or 1.2 percent, compared with the third
quarter of 2016.
The increases from December 31, 2015 were
primarily due to increases in the leasing and equipment finance
portfolio and in the inventory finance portfolio due to strong
originations and the expansion of the number of active dealers,
partially offset by run-off in the consumer real estate first mortgage
lien portfolio. The increase from September 30, 2016 for period-end
loans and leases was primarily due to increases in the inventory
finance, commercial, consumer real estate junior lien, and leasing and
equipment finance portfolios. The increase from the third quarter of
2016 for average loans and leases was primarily due to increases in
the inventory finance and leasing and equipment finance portfolios.
-
Loan and lease originations were $4.3 billion for the fourth quarter
of 2016, an increase of $0.4 billion, or 11.4 percent, compared with
the fourth quarter of 2015 and consistent with the third quarter of
2016. The increase from the fourth quarter of 2015 was primarily due
to increased originations in inventory finance and consumer real
estate.
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Credit Quality | | | | | | | | | | | | | | | | | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Trends |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Table 4 |
| | | | | | | | | | | | | | | | | | Change |
(Dollars in thousands)
| | | 4Q | | | 3Q | | | 2Q | | | 1Q | | | 4Q | | | 4Q16 vs | | | 4Q16 vs |
| | | 2016 |
|
| 2016 |
|
| 2016 |
|
| 2016 |
|
| 2015 |
|
| 3Q16 |
|
| 4Q15 |
Over 60-day delinquencies as a percentage of period-end loans and
leases(1) | | |
0.12
|
%
| | |
0.12
|
%
| | |
0.12
|
%
| | |
0.10
|
%
| | |
0.11
|
%
| | |
—bps
| | |
1bps
|
Net charge-offs as a percentage of average loans and leases(2) | | |
0.27
| | | |
0.26
| | | |
0.23
| | | |
0.27
| | | |
0.29
| | | |
1
| | | |
(2
|
)
|
Non-accrual loans and leases and other real estate owned
| | |
$
|
228,242
| | | |
$
|
223,759
| | | |
$
|
232,334
| | | |
$
|
241,090
| | | |
$
|
250,448
| | | |
2.0
|
%
| | |
(8.9
|
)%
|
Provision for credit losses
| | |
19,888
| | | |
13,894
| | | |
13,250
| | | |
18,842
| | | |
17,607
| | | |
43.1
| | | |
13.0
| |
|
(1) Excludes portfolios acquired with deteriorated credit quality
and non-accrual loans and leases.
|
(2) Annualized.
|
-
The net charge-off rate was 0.27 percent for the fourth quarter of
2016, down from 0.29 percent for the fourth quarter of 2015, and up
from 0.26 percent for the third quarter of 2016. The decrease from the
fourth quarter of 2015 was primarily due to improved credit quality in
the consumer real estate portfolio, partially offset by increased net
charge-offs in the auto finance portfolio. The increase from the third
quarter of 2016 was primarily due to increased net charge-offs in the
auto finance portfolio, partially offset by decreased net charge-offs
in the leasing and equipment finance portfolio.
-
Non-accrual loans and leases and other real estate owned was $228.2
million at December 31, 2016, a decrease of $22.2 million, or 8.9
percent, from December 31, 2015, and an increase of $4.5 million, or
2.0 percent, from September 30, 2016. Non-accrual loans and leases
were $181.4 million at December 31, 2016, a decrease of $19.0 million,
or 9.5 percent, from December 31, 2015 and a decrease of $8.6 million,
or 4.5 percent, from September 30, 2016. The decreases were primarily
due to improving credit quality trends in the consumer real estate and
commercial portfolios and lower non-accrual loans in the auto finance
portfolio, partially offset by an increase in non-accrual loans in the
inventory finance portfolio.
-
Provision for credit losses was $19.9 million for the fourth quarter
of 2016, an increase of $2.3 million, or 13.0 percent, from the fourth
quarter of 2015, and an increase of $6.0 million, or 43.1 percent,
from the third quarter of 2016. The increase from the fourth quarter
of 2015 was primarily due to growth in the overall loan and lease
portfolio, partially offset by a decrease in net charge-offs. The
increase from the third quarter of 2016 was primarily due to growth in
the overall loan and lease portfolio.
Deposits |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Table 5 |
| | | | | | | | | | | | Percent Change | | | | | | | | | |
(Dollars in thousands)
| | | 4Q | | | 3Q | | | 4Q | | | 4Q16 vs | | | 4Q16 vs | | | YTD | | | YTD | | | Percent |
| | | 2016 |
|
| 2016 |
|
| 2015 |
|
| 3Q16 |
|
| 4Q15 |
|
| 2016 |
|
| 2015 |
|
| Change |
| | | | | | | | | | | | | | | | | | | | | | | |
|
Checking
| | |
$
|
5,759,806
| | | |
$
|
5,673,888
| | | |
$
|
5,412,454
| | | |
1.5
|
%
| | |
6.4
|
%
| | |
$
|
5,688,690
| | | |
$
|
5,387,112
| | | |
5.6
|
%
|
Savings
| | |
4,681,662
| | | |
4,672,642
| | | |
4,733,703
| | | |
0.2
| | | |
(1.1
|
)
| | |
4,689,543
| | | |
4,952,680
| | | |
(5.3
|
)
|
Money market
| | |
2,429,239
| | | |
2,496,590
| | | |
2,349,127
| | | |
(2.7
|
)
| | |
3.4
| | | |
2,488,977
| | | |
2,265,121
| | | |
9.9
| |
Certificates of deposit
| | |
4,198,190
|
|
|
|
4,304,990
|
|
|
|
3,793,653
|
| | |
(2.5
|
)
| | |
10.7
| | | |
4,229,247
|
|
|
|
3,340,341
|
| | |
26.6
| |
Total average deposits
| | |
$
|
17,068,897
|
|
|
|
$
|
17,148,110
|
|
|
|
$
|
16,288,937
|
| | |
(0.5
|
)
| | |
4.8
| | | |
$
|
17,096,457
|
|
|
|
$
|
15,945,254
|
| | |
7.2
| |
| | | | | | | | | | | | | | | | | | | | | | | |
|
Average interest rate on deposits(1) | | |
0.35
|
%
| | |
0.37
|
%
| | |
0.34
|
%
| | | | | | | | |
0.36
|
%
| | |
0.30
|
%
| | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
(1) Annualized.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Total average deposits for the fourth quarter of 2016 increased
$0.8 billion, or 4.8 percent, from the fourth quarter of 2015 and were
consistent with the third quarter of 2016. The increase from the
fourth quarter of 2015 was primarily due to special campaigns for
certificates of deposit during the first three quarters of 2016, as
well as growth in checking and money market balances.
Non-interest Expense |
| |
|
| |
|
| | |
|
| | |
|
| |
|
| |
|
| | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Table 6 |
|
|
| | | | | | | | | | Change | | | | | | | | | | |
(Dollars in thousands)
| | | 4Q | | | 3Q | | | 4Q | | | 4Q16 vs | | | 4Q16 vs | | | YTD | | | YTD | | | Percent |
| | | 2016 |
|
| 2016 |
|
| 2015 |
|
| 3Q16 |
|
| 4Q15 |
|
| 2016 |
|
| 2015 |
|
| Change |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Compensation and employee benefits
| | |
$
|
115,001
| | | |
$
|
117,155
| | | |
$
|
109,061
| | | |
(1.8
|
)%
| | |
5.4
|
%
| | |
$
|
474,722
| | | |
$
|
457,743
| | | |
3.7
|
%
|
Occupancy and equipment
| | |
38,150
| | | |
37,938
| | | |
37,824
| | | |
0.6
| | | |
0.9
| | | |
149,980
| | | |
144,962
| | | |
3.5
| |
Other
| | |
59,235
|
|
|
|
59,421
|
|
|
|
56,930
|
| | |
(0.3
|
)
| | |
4.0
| | | |
231,420
|
|
|
|
229,255
|
| | |
0.9
| |
Subtotal
| | |
212,386
| | | |
214,514
| | | |
203,815
| | | |
(1.0
|
)
| | |
4.2
| | | |
856,122
| | | |
831,960
| | | |
2.9
| |
Operating lease depreciation
| | |
10,906
| | | |
10,038
| | | |
13,608
| | | |
8.6
| | | |
(19.9
|
)
| | |
40,359
| | | |
39,409
| | | |
2.4
| |
Foreclosed real estate and repossessed assets, net
| | |
1,889
| | | |
4,243
| | | |
4,940
| | | |
(55.5
|
)
| | |
(61.8
|
)
| | |
13,187
| | | |
23,193
| | | |
(43.1
|
)
|
Other credit costs, net
| | |
178
|
|
|
|
83
|
|
|
|
224
|
| | |
114.5
| | | |
(20.5
|
)
| | |
219
|
|
| |
185
|
| | |
18.4
| |
Total non-interest expense
| | |
$
|
225,359
|
|
|
|
$
|
228,878
|
|
|
|
$
|
222,587
|
| | |
(1.5
|
)
| | |
1.2
| | | |
$
|
909,887
|
|
|
|
$
|
894,747
|
| | |
1.7
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Efficiency ratio
| | |
68.89
|
%
| | |
69.00
|
%
| | |
69.27
|
%
| | |
(11
|
) bps
| | |
(38
|
) bps
| | |
69.25
|
%
| | |
70.88
|
%
| | |
(163
|
) bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Compensation and employee benefits expense increased $5.9 million, or
5.4 percent, from the fourth quarter of 2015 and decreased $2.2
million, or 1.8 percent, from the third quarter of 2016. The increase
from the fourth quarter of 2015 was primarily due to higher other
compensation and health insurance expenses, partially offset by the
annual pension plan valuation adjustment. The decrease from the third
quarter of 2016 was primarily due to the annual pension plan valuation
adjustment and lower salaries, partially offset by higher health
insurance expenses.
-
Net expenses related to foreclosed real estate and repossessed assets
decreased $3.1 million, or 61.8 percent, from the fourth quarter of
2015 and decreased $2.4 million, or 55.5 percent, from the third
quarter of 2016. The decrease from the fourth quarter of 2015 was
primarily due to higher gains on sales of commercial properties, lower
write-downs on existing foreclosed consumer and commercial properties
and lower operating costs associated with maintaining fewer consumer
properties, partially offset by higher repossessed assets expense. The
decrease from the third quarter of 2016 was primarily due to higher
gains on sales of commercial properties and lower write-downs on
existing foreclosed consumer properties, partially offset by higher
repossessed assets expense.
Capital |
|
| |
|
| |
|
|
|
|
|
|
|
Capital Information |
|
|
|
|
| Table 7 |
| | | At Dec. 31, | | | At Dec. 31, |
(Dollars in thousands, except per-share data)
| | | 2016 | | | 2015 |
Total equity
| | |
$
|
2,444,645
| | | |
$
|
2,306,917
| |
Book value per common share
| | |
12.66
| | | |
11.94
| |
Tangible book value per common share(1) | | |
11.33
| | | |
10.59
| |
Common equity to assets
| | |
10.09
|
%
| | |
9.80
|
%
|
Tangible common equity to tangible assets(1) | | |
9.13
| | | |
8.79
| |
Capital accumulation rate(2) | | |
8.59
| | | |
10.44
| |
| | | | | |
|
| | | At Dec. 31, | | | At Dec. 31, |
Regulatory Capital: | | | 2016(3) | | | 2015 |
Common equity Tier 1 capital
| | |
$
|
1,970,323
| | | |
$
|
1,814,442
| |
Tier 1 capital
| | |
2,248,221
| | | |
2,092,195
| |
Total capital
| | |
2,635,925
| | | |
2,487,060
| |
| | | | | |
|
Regulatory Capital Ratios: | | | | | | |
Common equity Tier 1 capital ratio
| | |
10.24
|
%
| | |
10.00
|
%
|
Tier 1 risk-based capital ratio
| | |
11.68
| | | |
11.54
| |
Total risk-based capital ratio
| | |
13.69
| | | |
13.71
| |
Tier 1 leverage ratio
| | |
10.73
| | | |
10.46
| |
| | | | | |
|
(1) See "Reconciliation of GAAP to Non-GAAP Financial Measures"
table.
|
(2) Calculated as the change in annualized year-to-date common
equity Tier 1 capital as a percentage of prior year end common
equity Tier 1 capital.
|
(3) The regulatory capital ratios for 4Q 2016 are preliminary
pending completion and filing of the Company's regulatory reports.
|
-
TCF maintained strong capital ratios as the Company accumulated
capital through earnings.
-
TCF increased book value per common share 6.0 percent in 2016. TCF
also increased tangible book value per common share 7.0 percent in
2016.
-
On January 25, 2017, TCF's Board of Directors declared a regular
quarterly cash dividend of 7.5 cents per common share, payable on
March 1, 2017, to stockholders of record at the close of business on
February 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 March 1, 2017, to stockholders of record at the close of
business on February 15, 2017.
Webcast Information
A live webcast of TCF's conference call to discuss the fourth quarter
earnings will be hosted at TCF's website, http://ir.tcfbank.com,
on January 27, 2017 at 9:00 a.m. CST. 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 December 31, 2016, TCF had $21.4 billion in total
assets and 339 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, 2015 under the heading "Risk Factors", the
factors discussed below and any other cautionary statements, written or
oral, which may be made or referred to in connection with any such
forward-looking statements. Since it is not possible to foresee all such
factors, these factors should not be considered as complete or
exhaustive.
Adverse Economic or Business Conditions;
Competitive Conditions; Credit and Other Risks. Deterioration
in general economic and banking industry conditions, including those
arising from government shutdowns, defaults, anticipated defaults or
rating agency downgrades of sovereign debt (including debt of the U.S.),
or increases in unemployment; adverse economic, business and competitive
developments such as shrinking interest margins, reduced demand for
financial services and loan and lease products, deposit outflows,
increased deposit costs due to competition for deposit growth and
evolving payment system developments, deposit account attrition or an
inability to increase the number of deposit accounts; customers
completing financial transactions without using a bank; adverse changes
in credit quality and other risks posed by TCF's loan, lease,
investment, securities held to maturity and securities available for
sale portfolios, including declines in commercial or residential real
estate values, changes in the allowance for loan and lease losses
dictated by new market conditions or regulatory requirements, or the
inability of home equity line borrowers to make increased payments
caused by increased interest rates or amortization of principal;
deviations from estimates of prepayment rates and fluctuations in
interest rates that result in decreases in the value of assets such as
interest-only strips that arise in connection with TCF's loan sales
activity; interest rate risks resulting from fluctuations in prevailing
interest rates or other factors that result in a mismatch between yields
earned on TCF's interest-earning assets and the rates paid on its
deposits and borrowings; foreign currency exchange risks; counterparty
risk, including the risk of defaults by our counterparties or diminished
availability of counterparties who satisfy our credit quality
requirements; decreases in demand for the types of equipment that TCF
leases or finances; the effect of any negative publicity.
Legislative and Regulatory Requirements. New
consumer protection and supervisory requirements and regulations,
including those resulting from action by the Consumer Financial
Protection Bureau and changes in the scope of Federal preemption of
state laws that could be applied to national banks and their
subsidiaries; the imposition of requirements that adversely impact TCF's
deposit, lending, loan collection and other business activities such as
mortgage foreclosure moratorium laws, further regulation of financial
institution campus banking programs, use by municipalities of eminent
domain on property securing troubled residential mortgage loans, or
imposition of underwriting or other limitations that impact the ability
to offer certain variable-rate products; changes affecting customer
account charges and fee income, including changes to interchange rates;
regulatory actions or changes in customer opt-in preferences with
respect to overdrafts, which may have an adverse impact on TCF; changes
to bankruptcy laws which would result in the loss of all or part of
TCF's security interest due to collateral value declines; deficiencies
in TCF's compliance 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
resulting from Federal health care reform; regulatory criticism and
resulting enforcement actions or other adverse consequences such as
increased capital requirements, higher deposit insurance assessments or
monetary damages or penalties; heightened regulatory practices,
requirements or expectations, including, but not limited to,
requirements related to enterprise risk management, the Bank Secrecy Act
and anti-money laundering compliance activity.
Earnings/Capital Risks and Constraints,
Liquidity Risks. Limitations on TCF's ability to pay
dividends or to increase dividends because of financial performance
deterioration, regulatory restrictions or limitations; increased deposit
insurance premiums, special assessments or other costs related to
adverse conditions in the banking industry; the impact on banks of
regulatory reform, including additional capital, leverage, liquidity and
risk management requirements or changes in the composition of qualifying
regulatory capital; adverse changes in securities markets directly or
indirectly affecting TCF's ability to sell assets or to fund its
operations; diminished unsecured borrowing capacity resulting from TCF
credit rating downgrades or unfavorable conditions in the credit markets
that restrict or limit various funding sources; costs associated with
new regulatory requirements or interpretive guidance relating to
liquidity; uncertainties relating to future retail deposit account
changes, including limitations on TCF's ability to predict customer
behavior and the impact on TCF's fee revenues.
Branching Risk; Growth Risks. Adverse
developments affecting TCF's supermarket banking relationships or any of
the 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; failure to successfully attract and
retain new customers, including the failure to attract and retain
manufacturers and dealers to expand the inventory finance business;
failure to effectuate, and risks of claims related to, sales and
securitizations of loans; risks related to new product additions and
addition of distribution channels (or entry into new markets) for
existing products.
Technological and Operational Matters. Technological
or operational difficulties, loss or theft of information, cyber-attacks
and other security breaches, counterparty failures and the possibility
that deposit account losses (fraudulent checks, etc.) may increase;
failure to keep pace with technological change, including the failure to
develop and maintain technology necessary to satisfy customer demands;
ability to attract and retain employees given competitive conditions.
Litigation Risks. Results of
litigation or government enforcement actions, including class action
litigation or enforcement actions concerning TCF's lending or deposit
activities, including account opening/origination, servicing practices,
fees or charges, employment practices, or checking account overdraft
program "opt in" requirements; and possible increases in indemnification
obligations for certain litigation against Visa U.S.A.
Accounting, Audit, Tax and Insurance Matters.
Changes in accounting standards or interpretations of existing
standards; federal or state monetary, fiscal or tax policies, including
adoption of state legislation that would increase state taxes;
ineffective internal controls; adverse federal, state or foreign tax
assessments or findings in tax audits; lack of or inadequate insurance
coverage for claims against TCF; potential for claims and legal action
related to TCF's fiduciary responsibilities.
|
TCF FINANCIAL CORPORATION AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF INCOME |
(Dollars in thousands, except per-share data)
|
(Unaudited)
|
|
|
|
| Three Months Ended December 31, |
|
| Change |
| | | 2016 |
|
| 2015 | | | $ |
|
| % |
Interest income: | | | | | | | | | | | | |
Loans and leases
| | |
$
|
210,848
| | | |
$
|
212,346
| | | |
$
|
(1,498
|
)
| | |
(0.7
|
)%
|
Securities available for sale
| | |
7,553
| | | |
4,864
| | | |
2,689
| | | |
55.3
| |
Securities held to maturity
| | |
1,165
| | | |
1,336
| | | |
(171
|
)
| | |
(12.8
|
)
|
Loans held for sale and other
| | |
12,092
|
| | |
6,905
|
| | |
5,187
|
| | |
75.1
| |
Total interest income
| | |
231,658
|
| | |
225,451
|
| | |
6,207
|
| | |
2.8
| |
Interest expense: | | | | | | | | | | | | |
Deposits
| | |
15,053
| | | |
13,772
| | | |
1,281
| | | |
9.3
| |
Borrowings
| | |
5,159
|
| | |
6,010
|
| | |
(851
|
)
| | |
(14.2
|
)
|
Total interest expense
| | |
20,212
|
| | |
19,782
|
| | |
430
|
| | |
2.2
| |
Net interest income
| | |
211,446
| | | |
205,669
| | | |
5,777
| | | |
2.8
| |
Provision for credit losses
| | |
19,888
|
| | |
17,607
|
| | |
2,281
|
| | |
13.0
| |
Net interest income after provision for credit losses
| | |
191,558
|
| | |
188,062
|
| | |
3,496
|
| | |
1.9
| |
Non-interest income: | | | | | | | | | | | | |
Fees and service charges
| | |
35,132
| | | |
37,741
| | | |
(2,609
|
)
| | |
(6.9
|
)
|
Card revenue
| | |
13,689
| | | |
13,781
| | | |
(92
|
)
| | |
(0.7
|
)
|
ATM revenue
| | |
4,806
|
| | |
5,143
|
| | |
(337
|
)
| | |
(6.6
|
)
|
Subtotal
| | |
53,627
| | | |
56,665
| | | |
(3,038
|
)
| | |
(5.4
|
)
|
Gains on sales of auto loans, net
| | |
1,145
| | | |
3,136
| | | |
(1,991
|
)
| | |
(63.5
|
)
|
Gains on sales of consumer real estate loans, net
| | |
16,676
| | | |
13,104
| | | |
3,572
| | | |
27.3
| |
Servicing fee income
| | |
11,404
|
| | |
8,622
|
| | |
2,782
|
| | |
32.3
| |
Subtotal
| | |
29,225
| | | |
24,862
| | | |
4,363
| | | |
17.5
| |
Leasing and equipment finance
| | |
31,316
| | | |
32,355
| | | |
(1,039
|
)
| | |
(3.2
|
)
|
Other
| | |
1,365
|
| | |
1,806
|
| | |
(441
|
)
| | |
(24.4
|
)
|
Fees and other revenue
| | |
115,533
| | | |
115,688
| | | |
(155
|
)
| | |
(0.1
|
)
|
Gains (losses) on securities, net
| | |
135
|
| | |
(29
|
)
| | |
164
|
| | |
N.M.
|
Total non-interest income
| | |
115,668
|
| | |
115,659
|
| | |
9
|
| | |
—
| |
Non-interest expense: | | | | | | | | | | | | |
Compensation and employee benefits
| | |
115,001
| | | |
109,061
| | | |
5,940
| | | |
5.4
| |
Occupancy and equipment
| | |
38,150
| | | |
37,824
| | | |
326
| | | |
0.9
| |
Other
| | |
59,235
|
| | |
56,930
|
| | |
2,305
|
| | |
4.0
| |
Subtotal
| | |
212,386
| | | |
203,815
| | | |
8,571
| | | |
4.2
| |
Operating lease depreciation
| | |
10,906
| | | |
13,608
| | | |
(2,702
|
)
| | |
(19.9
|
)
|
Foreclosed real estate and repossessed assets, net
| | |
1,889
| | | |
4,940
| | | |
(3,051
|
)
| | |
(61.8
|
)
|
Other credit costs, net
| | |
178
|
| | |
224
|
| | |
(46
|
)
| | |
(20.5
|
)
|
Total non-interest expense
| | |
225,359
|
| | |
222,587
|
| | |
2,772
|
| | |
1.2
| |
Income before income tax expense
| | |
81,867
| | | |
81,134
| | | |
733
| | | |
0.9
| |
Income tax expense
| | |
29,762
|
| | |
26,614
|
| | |
3,148
|
| | |
11.8
| |
Income after income tax expense
| | |
52,105
| | | |
54,520
| | | |
(2,415
|
)
| | |
(4.4
|
)
|
Income attributable to non-controlling interest
| | |
2,013
|
| | |
2,028
|
| | |
(15
|
)
| | |
(0.7
|
)
|
Net income attributable to TCF Financial Corporation | | |
50,092
| | | |
52,492
| | | |
(2,400
|
)
| | |
(4.6
|
)
|
Preferred stock dividends
| | |
4,847
|
| | |
4,847
|
| | |
—
|
| | |
—
| |
Net income available to common stockholders | | |
$
|
45,245
|
| | |
$
|
47,645
|
| | |
$
|
(2,400
|
)
| | |
(5.0
|
)
|
| | | | | | | | | | | |
|
Earnings per common share: | | | | | | | | | | | | |
Basic
| | |
$
|
0.27
| | | |
$
|
0.29
| | | |
$
|
(0.02
|
)
| | |
(6.9
|
)%
|
Diluted
| | |
0.27
| | | |
0.29
| | | |
(0.02
|
)
| | |
(6.9
|
)
|
| | | | | | | | | | | |
|
Dividends declared per common share | | |
$
|
0.075
| | | |
$
|
0.075
| | | |
$
|
—
| | | |
—
|
%
|
| | | | | | | | | | | |
|
Average common and common equivalent shares | | | | | | | | | | | | |
outstanding (in thousands): | | | | | | | | | | | | |
Basic
| | |
167,412
| | | |
166,343
| | | |
1,069
| | | |
0.6
|
%
|
Diluted
| | |
168,049
| | | |
166,942
| | | |
1,107
| | | |
0.7
| |
| | | | | | | | | | | | | | | |
|
N.M. Not Meaningful.
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
|
|
TCF FINANCIAL CORPORATION AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF INCOME |
(Dollars in thousands, except per-share data)
|
(Unaudited)
|
|
|
|
| Year Ended December 31, |
|
| Change |
| | | 2016 |
|
| 2015 | | | $ |
|
| % |
Interest income: | | | | | | | | | | | | |
Loans and leases
| | |
$
|
850,546
| | | |
$
|
832,736
| | | |
$
|
17,810
| | | |
2.1
|
%
|
Securities available for sale
| | |
26,573
| | | |
15,648
| | | |
10,925
| | | |
69.8
| |
Securities held to maturity
| | |
4,649
| | | |
5,486
| | | |
(837
|
)
| | |
(15.3
|
)
|
Loans held for sale and other
| | |
48,962
|
| | |
38,060
|
| | |
10,902
|
| | |
28.6
| |
Total interest income
| | |
930,730
|
| | |
891,930
|
| | |
38,800
|
| | |
4.4
| |
Interest expense: | | | | | | | | | | | | |
Deposits
| | |
61,788
| | | |
48,226
| | | |
13,562
| | | |
28.1
| |
Borrowings
| | |
20,836
|
| | |
23,316
|
| | |
(2,480
|
)
| | |
(10.6
|
)
|
Total interest expense
| | |
82,624
|
| | |
71,542
|
| | |
11,082
|
| | |
15.5
| |
Net interest income
| | |
848,106
| | | |
820,388
| | | |
27,718
| | | |
3.4
| |
Provision for credit losses
| | |
65,874
|
| | |
52,944
|
| | |
12,930
|
| | |
24.4
| |
Net interest income after provision for credit losses
| | |
782,232
|
| | |
767,444
|
| | |
14,788
|
| | |
1.9
| |
Non-interest income: | | | | | | | | | | | | |
Fees and service charges
| | |
137,664
| | | |
144,999
| | | |
(7,335
|
)
| | |
(5.1
|
)
|
Card revenue
| | |
54,882
| | | |
54,387
| | | |
495
| | | |
0.9
| |
ATM revenue
| | |
20,445
|
| | |
21,544
|
| | |
(1,099
|
)
| | |
(5.1
|
)
|
Subtotal
| | |
212,991
| | | |
220,930
| | | |
(7,939
|
)
| | |
(3.6
|
)
|
Gains on sales of auto loans, net
| | |
34,832
| | | |
30,580
| | | |
4,252
| | | |
13.9
| |
Gains on sales of consumer real estate loans, net
| | |
50,427
| | | |
40,964
| | | |
9,463
| | | |
23.1
| |
Servicing fee income
| | |
40,182
|
| | |
31,229
|
| | |
8,953
|
| | |
28.7
| |
Subtotal
| | |
125,441
| | | |
102,773
| | | |
22,668
| | | |
22.1
| |
Leasing and equipment finance
| | |
119,166
| | | |
108,129
| | | |
11,037
| | | |
10.2
| |
Other
| | |
8,883
|
| | |
10,463
|
| | |
(1,580
|
)
| | |
(15.1
|
)
|
Fees and other revenue
| | |
466,481
| | | |
442,295
| | | |
24,186
| | | |
5.5
| |
Gains (losses) on securities, net
| | |
(581
|
)
| | |
(297
|
)
| | |
(284
|
)
| | |
(95.6
|
)
|
Total non-interest income
| | |
465,900
|
| | |
441,998
|
| | |
23,902
|
| | |
5.4
| |
Non-interest expense: | | | | | | | | | | | | |
Compensation and employee benefits
| | |
474,722
| | | |
457,743
| | | |
16,979
| | | |
3.7
| |
Occupancy and equipment
| | |
149,980
| | | |
144,962
| | | |
5,018
| | | |
3.5
| |
Other
| | |
231,420
|
| | |
229,255
|
| | |
2,165
|
| | |
0.9
| |
Subtotal
| | |
856,122
| | | |
831,960
| | | |
24,162
| | | |
2.9
| |
Operating lease depreciation
| | |
40,359
| | | |
39,409
| | | |
950
| | | |
2.4
| |
Foreclosed real estate and repossessed assets, net
| | |
13,187
| | | |
23,193
| | | |
(10,006
|
)
| | |
(43.1
|
)
|
Other credit costs, net
| | |
219
|
| | |
185
|
| | |
34
|
| | |
18.4
| |
Total non-interest expense
| | |
909,887
|
| | |
894,747
|
| | |
15,140
|
| | |
1.7
| |
Income before income tax expense
| | |
338,245
| | | |
314,695
| | | |
23,550
| | | |
7.5
| |
Income tax expense
| | |
116,528
|
| | |
108,872
|
| | |
7,656
|
| | |
7.0
| |
Income after income tax expense
| | |
221,717
| | | |
205,823
| | | |
15,894
| | | |
7.7
| |
Income attributable to non-controlling interest
| | |
9,593
|
| | |
8,700
|
| | |
893
|
| | |
10.3
| |
Net income attributable to TCF Financial Corporation | | |
212,124
| | | |
197,123
| | | |
15,001
| | | |
7.6
| |
Preferred stock dividends
| | |
19,388
|
| | |
19,388
|
| | |
—
|
| | |
—
| |
Net income available to common stockholders | | |
$
|
192,736
|
| | |
$
|
177,735
|
| | |
$
|
15,001
|
| | |
8.4
| |
| | | | | | | | | | | |
|
Earnings per common share: | | | | | | | | | | | | |
Basic
| | |
$
|
1.15
| | | |
$
|
1.07
| | | |
$
|
0.08
| | | |
7.5
|
%
|
Diluted
| | |
1.15
| | | |
1.07
| | | |
0.08
| | | |
7.5
| |
| | | | | | | | | | | |
|
Dividends declared per common share | | |
$
|
0.300
| | | |
$
|
0.225
| | | |
$
|
0.075
| | | |
33.3
|
%
|
| | | | | | | | | | | |
|
Average common and common equivalent shares outstanding (in
thousands): | | | | | | | | | | | | |
Basic
| | |
167,220
| | | |
165,697
| | | |
1,523
| | | |
0.9
|
%
|
Diluted
| | |
167,807
| | | |
166,242
| | | |
1,565
| | | |
0.9
| |
| | | | | | | | | | | | | | | |
|
|
TCF FINANCIAL CORPORATION AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
(Dollars in thousands)
|
(Unaudited)
|
|
|
|
| Three Months Ended December 31, |
|
| Change |
| | | 2016 |
|
| 2015 | | | $ |
|
| % |
Net income attributable to TCF Financial Corporation | | |
$
|
50,092
|
| | |
$
|
52,492
|
| | |
$
|
(2,400
|
)
| | |
(4.6
|
)%
|
Other comprehensive income (loss), net of tax: | | | | | | | | | | | | |
Net unrealized gains (losses) on securities available for sale and
interest-only strips
| | |
(40,035
|
)
| | |
(3,207
|
)
| | |
(36,828
|
)
| | |
N.M.
|
Net unrealized gains (losses) on net investment hedges
| | |
913
| | | |
1,121
| | | |
(208
|
)
| | |
(18.6
|
)
|
Foreign currency translation adjustment
| | |
(1,491
|
)
| | |
(1,986
|
)
| | |
495
| | | |
24.9
| |
Recognized postretirement prior service cost
| | |
(7
|
)
| | |
(7
|
)
| | |
—
|
| | |
—
| |
Total other comprehensive income (loss), net of tax
| | |
(40,620
|
)
| | |
(4,079
|
)
| | |
(36,541
|
)
| | |
N.M.
|
Comprehensive income | | |
$
|
9,472
|
| | |
$
|
48,413
|
| | |
$
|
(38,941
|
)
| | |
(80.4
|
)
|
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
| | | Year Ended December 31, | | | Change |
| | | 2016 | | | 2015 | | | $ | | | % |
Net income attributable to TCF Financial Corporation | | |
$
|
212,124
|
| | |
$
|
197,123
|
| | |
$
|
15,001
|
| | |
7.6
|
%
|
Other comprehensive income (loss), net of tax: | | | | | | | | | | | | |
Net unrealized gains (losses) on securities available for sale and
interest-only strips
| | |
(18,894
|
)
| | |
(816
|
)
| | |
(18,078
|
)
| | |
N.M.
|
Net unrealized gains (losses) on net investment hedges
| | |
(756
|
)
| | |
4,713
| | | |
(5,469
|
)
| | |
N.M.
|
Foreign currency translation adjustment
| | |
1,300
| | | |
(8,304
|
)
| | |
9,604
| | | |
N.M.
|
Recognized postretirement prior service cost
| | |
(29
|
)
| | |
(29
|
)
| | |
—
|
| | |
—
| |
Total other comprehensive income (loss), net of tax
| | |
(18,379
|
)
| | |
(4,436
|
)
| | |
(13,943
|
)
| | |
N.M.
|
Comprehensive income | | |
$
|
193,745
|
| | |
$
|
192,687
|
| | |
$
|
1,058
|
| | |
0.5
| |
| | | | | | | | | | | | | | | | | | |
|
N.M. Not Meaningful.
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
|
|
TCF FINANCIAL CORPORATION AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION |
(Dollars in thousands, except per-share data)
|
(Unaudited)
|
|
|
|
| At December 31, |
|
| Change |
| | | 2016 |
|
| 2015 | | | $ |
|
| % |
ASSETS: | | | | | | | | | | | | |
Cash and due from banks
| | |
$
|
609,603
| | | |
$
|
889,337
| | | |
$
|
(279,734
|
)
| | |
(31.5
|
)%
|
Investments
| | |
74,714
| | | |
70,537
| | | |
4,177
| | | |
5.9
| |
Securities held to maturity
| | |
181,314
| | | |
201,920
| | | |
(20,606
|
)
| | |
(10.2
|
)
|
Securities available for sale
| | |
1,423,435
| | | |
888,885
| | | |
534,550
| | | |
60.1
| |
Loans and leases held for sale
| | |
268,832
| | | |
157,625
| | | |
111,207
| | | |
70.6
| |
Loans and leases:
| | | | | | | | | | | | |
Consumer real estate:
| | | | | | | | | | | | |
First mortgage lien
| | |
2,292,596
| | | |
2,624,956
| | | |
(332,360
|
)
| | |
(12.7
|
)
|
Junior lien
| | |
2,791,756
|
| | |
2,839,316
|
| | |
(47,560
|
)
| | |
(1.7
|
)
|
Total consumer real estate
| | |
5,084,352
| | | |
5,464,272
| | | |
(379,920
|
)
| | |
(7.0
|
)
|
Commercial
| | |
3,286,478
| | | |
3,145,832
| | | |
140,646
| | | |
4.5
| |
Leasing and equipment finance
| | |
4,336,310
| | | |
4,012,248
| | | |
324,062
| | | |
8.1
| |
Inventory finance
| | |
2,470,175
| | | |
2,146,754
| | | |
323,421
| | | |
15.1
| |
Auto finance
| | |
2,647,741
| | | |
2,647,596
| | | |
145
| | | |
—
| |
Other
| | |
18,771
|
| | |
19,297
|
| | |
(526
|
)
| | |
(2.7
|
)
|
Total loans and leases
| | |
17,843,827
| | | |
17,435,999
| | | |
407,828
| | | |
2.3
| |
Allowance for loan and lease losses
| | |
(160,269
|
)
| | |
(156,054
|
)
| | |
(4,215
|
)
| | |
(2.7
|
)
|
Net loans and leases
| | |
17,683,558
| | | |
17,279,945
| | | |
403,613
| | | |
2.3
| |
Premises and equipment, net
| | |
418,372
| | | |
445,934
| | | |
(27,562
|
)
| | |
(6.2
|
)
|
Goodwill
| | |
225,640
| | | |
225,640
| | | |
—
| | | |
—
| |
Other assets
| | |
555,858
|
| | |
529,786
|
| | |
26,072
|
| | |
4.9
| |
Total assets
| | |
$
|
21,441,326
|
| | |
$
|
20,689,609
|
| | |
$
|
751,717
|
| | |
3.6
| |
| | | | | | | | | | | |
|
LIABILITIES AND EQUITY: | | | | | | | | | | | | |
Deposits:
| | | | | | | | | | | | |
Checking
| | |
$
|
6,009,151
| | | |
$
|
5,690,559
| | | |
$
|
318,592
| | | |
5.6
|
%
|
Savings
| | |
4,719,481
| | | |
4,717,457
| | | |
2,024
| | | |
—
| |
Money market
| | |
2,421,467
| | | |
2,408,180
| | | |
13,287
| | | |
0.6
| |
Certificates of deposit
| | |
4,092,423
|
| | |
3,903,793
|
| | |
188,630
|
| | |
4.8
| |
Total deposits
| | |
17,242,522
|
| | |
16,719,989
|
| | |
522,533
|
| | |
3.1
| |
Short-term borrowings
| | |
4,391
| | | |
5,381
| | | |
(990
|
)
| | |
(18.4
|
)
|
Long-term borrowings
| | |
1,073,181
|
| | |
1,034,557
|
| | |
38,624
|
| | |
3.7
| |
Total borrowings
| | |
1,077,572
| | | |
1,039,938
| | | |
37,634
| | | |
3.6
| |
Accrued expenses and other liabilities
| | |
676,587
|
| | |
622,765
|
| | |
53,822
|
| | |
8.6
| |
Total liabilities
| | |
18,996,681
|
| | |
18,382,692
|
| | |
613,989
|
| | |
3.3
| |
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; 171,034,506 and 169,887,030 shares issued, respectively
| | |
1,710
| | | |
1,699
| | | |
11
| | | |
0.6
| |
Additional paid-in capital
| | |
862,776
| | | |
851,836
| | | |
10,940
| | | |
1.3
| |
Retained earnings, subject to certain restrictions
| | |
1,382,901
| | | |
1,240,347
| | | |
142,554
| | | |
11.5
| |
Accumulated other comprehensive income (loss)
| | |
(33,725
|
)
| | |
(15,346
|
)
| | |
(18,379
|
)
| | |
(119.8
|
)
|
Treasury stock at cost, 42,566 shares, and other
| | |
(49,419
|
)
| | |
(50,860
|
)
| | |
1,441
|
| | |
2.8
| |
Total TCF Financial Corporation stockholders' equity
| | |
2,427,483
| | | |
2,290,916
| | | |
136,567
| | | |
6.0
| |
Non-controlling interest in subsidiaries
| | |
17,162
|
| | |
16,001
|
| | |
1,161
|
| | |
7.3
| |
Total equity
| | |
2,444,645
|
| | |
2,306,917
|
| | |
137,728
|
| | |
6.0
| |
Total liabilities and equity
| | |
$
|
21,441,326
|
| | |
$
|
20,689,609
|
| | |
$
|
751,717
|
| | |
3.6
| |
| | | | | | | | | | | | | | | | | | |
|
|
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 |
| | | Dec. 31, | | | Sep. 30, | | | Jun. 30, | | | Mar. 31, | | | Dec. 31, | | | Sep. 30, |
|
| Dec. 31, |
| | | 2016 | | | 2016 | | | 2016 | | | 2016 | | | 2015 | | | 2016 | | | 2015 |
Consumer real estate:
| | | | | | | | | | | | | | | | | | | | | |
First mortgage lien
| | |
0.40
|
%
| | |
0.36
|
%
| | |
0.36
|
%
| | |
0.39
|
%
| | |
0.46
|
%
| | |
4
|
bps
| | |
(6
|
)bps
|
Junior lien
| | |
0.05
| | | |
0.03
| | | |
0.03
| | | |
0.05
| | | |
0.05
| | | |
2
| | | |
—
| |
Total consumer real estate
| | |
0.21
| | | |
0.18
| | | |
0.18
| | | |
0.21
| | | |
0.25
| | | |
3
| | | |
(4
|
)
|
Commercial
| | |
—
| | | |
0.01
| | | |
0.11
| | | |
—
| | | |
—
| | | |
(1
|
)
| | |
—
| |
Leasing and equipment finance
| | |
0.10
| | | |
0.14
| | | |
0.13
| | | |
0.12
| | | |
0.06
| | | |
(4
|
)
| | |
4
| |
Inventory finance
| | |
—
| | | |
0.01
| | | |
—
| | | |
—
| | | |
0.01
| | | |
(1
|
)
| | |
(1
|
)
|
Auto finance
| | |
0.23
| | | |
0.20
| | | |
0.13
| | | |
0.09
| | | |
0.14
| | | |
3
| | | |
9
| |
Other
| | |
0.10
| | | |
0.05
| | | |
0.33
| | | |
0.13
| | | |
0.10
| | | |
5
| | | |
—
| |
Subtotal
| | |
0.12
| | | |
0.12
| | | |
0.12
| | | |
0.10
| | | |
0.11
| | | |
—
| | | |
1
| |
Portfolios acquired with deteriorated credit quality
| | |
—
| | | |
3.06
| | | |
0.02
| | | |
1.51
| | | |
0.43
| | | |
(306
|
)
| | |
(43
|
)
|
Total delinquencies
| | |
0.12
| | | |
0.12
| | | |
0.12
| | | |
0.10
| | | |
0.11
| | | |
—
| | | |
1
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
(1) Excludes non-accrual loans and leases.
|
Net Charge-Offs as a Percentage of
Average Loans and Leases |
|
|
| |
|
| |
| | | Quarter Ended(1) | | | Change from |
| | | Dec. 31, |
|
| Sep. 30, |
|
| Jun. 30, |
|
| Mar. 31, |
|
| Dec. 31, | | | Sep. 30, |
|
| Dec. 31, |
| | | 2016 | | | 2016 | | | 2016 | | | 2016 | | | 2015 | | | 2016 | | | 2015 |
Consumer real estate:
| | | | | | | | | | | | | | | | | | | | | |
First mortgage lien
| | |
0.26
|
%
| | |
0.34
|
%
| | |
0.35
|
%
| | |
0.55
|
%
| | |
0.54
|
%
| | |
(8
|
)bps
| | |
(28
|
)bps
|
Junior lien
| | |
0.08
| | | |
0.04
| | | |
0.05
| | | |
0.17
| | | |
0.17
| | | |
4
| | | |
(9
|
)
|
Total consumer real estate
| | |
0.17
| | | |
0.17
| | | |
0.19
| | | |
0.35
| | | |
0.34
| | | |
—
| | | |
(17
|
)
|
Commercial
| | |
0.01
| | | |
(0.01
|
)
| | |
0.08
| | | |
(0.02
|
)
| | |
0.05
| | | |
2
| | | |
(4
|
)
|
Leasing and equipment finance
| | |
0.10
| | | |
0.18
| | | |
0.11
| | | |
0.13
| | | |
0.16
| | | |
(8
|
)
| | |
(6
|
)
|
Inventory finance
| | |
0.07
| | | |
0.10
| | | |
0.09
| | | |
0.04
| | | |
0.05
| | | |
(3
|
)
| | |
2
| |
Auto finance
| | |
1.09
| | | |
0.86
| | | |
0.69
| | | |
0.81
| | | |
0.75
| | | |
23
| | | |
34
| |
Other
| | |
N.M.
| | |
N.M.
| | |
N.M.
| | |
N.M.
| | |
N.M.
| | |
N.M.
| | |
N.M.
|
Total
| | |
0.27
| | | |
0.26
| | | |
0.23
| | | |
0.27
| | | |
0.29
| | | |
1
| | | |
(2
|
)
|
|
N.M. Not Meaningful.
|
(1) Annualized.
|
Non-Accrual Loans and Leases Rollforward |
|
|
|
| Quarter Ended |
|
| Change from |
| | | Dec. 31, |
|
| Sep. 30, |
|
| Jun. 30, |
|
| Mar. 31, |
|
| Dec. 31, | | | Sep. 30, |
|
| Dec. 31, |
| | | 2016 | | | 2016 | | | 2016 | | | 2016 | | | 2015 | | | 2016 | | | 2015 |
Balance, beginning of period
| | |
$
|
190,047
| | | |
$
|
195,542
| | | |
$
|
198,649
| | | |
$
|
200,466
| | | |
$
|
206,110
| | | |
$
|
(5,495
|
)
| | |
$
|
(16,063
|
)
|
Additions
| | |
32,398
| | | |
28,697
| | | |
35,280
| | | |
38,029
| | | |
44,387
| | | |
3,701
| | | |
(11,989
|
)
|
Charge-offs
| | |
(4,158
|
)
| | |
(5,670
|
)
| | |
(5,475
|
)
| | |
(7,436
|
)
| | |
(9,002
|
)
| | |
1,512
| | | |
4,844
| |
Transfers to other assets
| | |
(17,118
|
)
| | |
(11,687
|
)
| | |
(10,310
|
)
| | |
(12,342
|
)
| | |
(13,612
|
)
| | |
(5,431
|
)
| | |
(3,506
|
)
|
Return to accrual status
| | |
(4,546
|
)
| | |
(5,447
|
)
| | |
(6,687
|
)
| | |
(7,698
|
)
| | |
(9,282
|
)
| | |
901
| | | |
4,736
| |
Payments received
| | |
(14,351
|
)
| | |
(13,845
|
)
| | |
(17,774
|
)
| | |
(15,551
|
)
| | |
(20,103
|
)
| | |
(506
|
)
| | |
5,752
| |
Sales
| | |
(2,764
|
)
| | |
—
| | | |
(900
|
)
| | |
—
| | | |
(775
|
)
| | |
(2,764
|
)
| | |
(1,989
|
)
|
Other, net
| | |
1,937
|
| | |
2,457
|
| | |
2,759
|
| | |
3,181
|
| | |
2,743
|
| | |
(520
|
)
| | |
(806
|
)
|
Balance, end of period
| | |
$
|
181,445
|
| | |
$
|
190,047
|
| | |
$
|
195,542
|
| | |
$
|
198,649
|
| | |
$
|
200,466
|
| | |
$
|
(8,602
|
)
| | |
$
|
(19,021
|
)
|
|
|
TCF FINANCIAL CORPORATION AND SUBSIDIARIES |
SUMMARY OF CREDIT QUALITY DATA, CONTINUED |
(Dollars in thousands)
|
(Unaudited)
|
|
Other Real Estate Owned Rollforward |
|
|
|
| Quarter Ended |
|
| Change from |
| | | Dec. 31, |
|
| Sep. 30, |
|
| Jun. 30, |
|
| Mar. 31, |
|
| Dec. 31, | | | Sep. 30, |
|
| Dec. 31, |
| | | 2016 | | | 2016 | | | 2016 | | | 2016 | | | 2015 | | | 2016 | | | 2015 |
Balance, beginning of period
| | |
$
|
33,712
| | | |
$
|
36,792
| | | |
$
|
42,441
| | | |
$
|
49,982
| | | |
$
|
58,584
| | | |
$
|
(3,080
|
)
| | |
$
|
(24,872
|
)
|
Transferred in
| | |
13,865
| | | |
10,124
| | | |
9,661
| | | |
10,575
| | | |
12,626
| | | |
3,741
| | | |
1,239
| |
Sales
| | |
(8,655
|
)
| | |
(12,997
|
)
| | |
(16,058
|
)
| | |
(18,885
|
)
| | |
(19,174
|
)
| | |
4,342
| | | |
10,519
| |
Writedowns
| | |
(1,281
|
)
| | |
(1,984
|
)
| | |
(2,027
|
)
| | |
(2,744
|
)
| | |
(2,130
|
)
| | |
703
| | | |
849
| |
Other, net(1) | | |
9,156
|
| | |
1,777
|
| | |
2,775
|
| | |
3,513
|
| | |
76
|
| | |
7,379
|
| | |
9,080
|
|
Balance, end of period
| | |
$
|
46,797
|
| | |
$
|
33,712
|
| | |
$
|
36,792
|
| | |
$
|
42,441
|
| | |
$
|
49,982
|
| | |
$
|
13,085
|
| | |
$
|
(3,185
|
)
|
|
(1) Includes transfers from premises and equipment.
|
|
|
Allowance for Loan and Lease Losses |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| | | At | | | At | | | At | | | At | | | At |
| | | Dec. 31, | | | Sep. 30, | | | Jun. 30, | | | Mar. 31, | | | Dec. 31, |
| | | 2016 | | | 2016 | | | 2016 | | | 2016 | | | 2015 |
| | | | | | % of | | | |
|
| % of | | | |
|
| % of | | | | | | % of | | | | | | % of |
| | | Balance | |
| Portfolio | | | Balance |
| | Portfolio | | | Balance | |
| Portfolio | | | Balance |
| | Portfolio | | | Balance | | | Portfolio |
Consumer real estate
| | |
$
|
59,448
| | | |
1.17
|
%
| | |
$
|
62,092
| | | |
1.24
|
%
| | |
$
|
64,765
| | | |
1.27
|
%
| | |
$
|
66,728
| | | |
1.27
|
%
| | |
$
|
67,992
| | | |
1.24
|
%
|
Commercial
| | |
32,695
| | | |
0.99
| | | |
31,648
| | | |
1.00
| | | |
31,161
| | | |
1.01
| | | |
31,547
| | | |
1.01
| | | |
30,185
| | | |
0.96
| |
Leasing and equipment finance
| | |
21,350
| | | |
0.49
| | | |
20,649
| | | |
0.49
| | | |
20,124
| | | |
0.49
| | | |
19,454
| | | |
0.49
| | | |
19,018
| | | |
0.47
| |
Inventory finance
| | |
13,932
| | | |
0.56
| | | |
11,807
| | | |
0.52
| | | |
12,084
| | | |
0.52
| | | |
13,306
| | | |
0.50
| | | |
11,128
| | | |
0.52
| |
Auto finance
| | |
32,310
| | | |
1.22
| | | |
29,115
| | | |
1.07
| | | |
29,772
| | | |
1.06
| | | |
28,535
| | | |
1.02
| | | |
26,486
| | | |
1.00
| |
Other
| | |
534
|
| | |
2.84
| | | |
530
|
| | |
2.96
| | | |
666
|
| | |
3.19
| | | |
504
|
| | |
2.66
| | | |
1,245
|
| | |
6.45
| |
Total
| | |
$
|
160,269
|
| | |
0.90
| | | |
$
|
155,841
|
| | |
0.90
| | | |
$
|
158,572
|
| | |
0.91
| | | |
$
|
160,074
|
| | |
0.90
| | | |
$
|
156,054
|
| | |
0.90
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Changes in Allowance for Loan and Lease
Losses |
|
|
|
| Quarter Ended |
|
| Change from |
| | | Dec. 31, |
|
| Sep. 30, |
|
| Jun. 30, |
|
| Mar. 31, |
|
| Dec. 31, | | | Sep. 30, |
|
| Dec. 31, |
| | | 2016 | | | 2016 | | | 2016 | | | 2016 | | | 2015 | | | 2016 | | | 2015 |
Balance, beginning of period
| | |
$
|
155,841
| | | |
$
|
158,572
| | | |
$
|
160,074
| | | |
$
|
156,054
| | | |
$
|
153,962
| | | |
$
|
(2,731
|
)
| | |
$
|
1,879
| |
Charge-offs
| | |
(16,451
|
)
| | |
(16,244
|
)
| | |
(14,723
|
)
| | |
(16,667
|
)
| | |
(18,101
|
)
| | |
(207
|
)
| | |
1,650
| |
Recoveries
| | |
4,718
|
| | |
4,779
|
| | |
4,592
|
| | |
4,761
|
| | |
5,523
|
| | |
(61
|
)
| | |
(805
|
)
|
Net (charge-offs) recoveries
| | |
(11,733
|
)
| | |
(11,465
|
)
| | |
(10,131
|
)
| | |
(11,906
|
)
| | |
(12,578
|
)
| | |
(268
|
)
| | |
845
| |
Provision for credit losses
| | |
19,888
| | | |
13,894
| | | |
13,250
| | | |
18,842
| | | |
17,607
| | | |
5,994
| | | |
2,281
| |
Other
| | |
(3,727
|
)
| | |
(5,160
|
)
| | |
(4,621
|
)
| | |
(2,916
|
)
| | |
(2,937
|
)
| | |
1,433
|
| | |
(790
|
)
|
Balance, end of period
| | |
$
|
160,269
|
| | |
$
|
155,841
|
| | |
$
|
158,572
|
| | |
$
|
160,074
|
| | |
$
|
156,054
|
| | |
$
|
4,428
|
| | |
$
|
4,215
|
|
|
|
TCF FINANCIAL CORPORATION AND SUBSIDIARIES |
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES |
(Dollars in thousands)
|
(Unaudited)
|
|
|
|
| Three Months Ended December 31, |
| | | 2016 |
|
| 2015 |
| | | Average |
|
| |
|
| Yields and | | | Average |
|
| |
|
| Yields and |
| | | Balance | | | Interest(1) | | | Rates(1)(2) | | | Balance | | | Interest(1) | | | Rates(1)(2) |
ASSETS: | | | | | | | | | | | | | | | | | | |
Investments and other
| | |
$
|
276,018
| | | |
$
|
2,322
| | | |
3.35
|
%
| | |
$
|
405,252
| | | |
$
|
2,644
| | | |
2.59
|
%
|
Securities held to maturity
| | |
182,177
| | | |
1,165
| | | |
2.56
| | | |
201,944
| | | |
1,336
| | | |
2.64
| |
Securities available for sale:(3) | | | | | | | | | | | | | | | | | | |
Taxable
| | |
791,289
| | | |
4,400
| | | |
2.22
| | | |
611,816
| | | |
3,691
| | | |
2.41
| |
Tax-exempt(4) | | |
610,070
| | | |
4,851
| | | |
3.18
| | | |
221,113
| | | |
1,804
| | | |
3.26
| |
Loans and leases held for sale
| | |
492,457
| | | |
9,770
| | | |
7.89
| | | |
180,278
| | | |
4,261
| | | |
9.38
| |
Loans and leases:(5) | | | | | | | | | | | | | | | | | | |
Consumer real estate:
| | | | | | | | | | | | | | | | | | |
Fixed-rate
| | |
2,169,493
| | | |
30,367
| | | |
5.57
| | | |
2,520,567
| | | |
36,384
| | | |
5.73
| |
Variable- and adjustable-rate
| | |
2,916,653
|
| | |
39,294
|
| | |
5.36
| | | |
3,083,957
|
| | |
40,294
|
| | |
5.18
| |
Total consumer real estate
| | |
5,086,146
| | | |
69,661
| | | |
5.45
| | | |
5,604,524
| | | |
76,678
| | | |
5.43
| |
Commercial:
| | | | | | | | | | | | | | | | | | |
Fixed-rate
| | |
948,856
| | | |
11,212
| | | |
4.70
| | | |
1,090,001
| | | |
13,869
| | | |
5.05
| |
Variable- and adjustable-rate
| | |
2,198,661
|
| | |
22,395
|
| | |
4.05
| | | |
2,027,982
|
| | |
20,705
|
| | |
4.05
| |
Total commercial
| | |
3,147,517
| | | |
33,607
| | | |
4.25
| | | |
3,117,983
| | | |
34,574
| | | |
4.40
| |
Leasing and equipment finance
| | |
4,252,543
| | | |
47,129
| | | |
4.43
| | | |
3,911,025
| | | |
44,479
| | | |
4.55
| |
Inventory finance
| | |
2,389,980
| | | |
34,820
| | | |
5.80
| | | |
2,180,534
| | | |
31,128
| | | |
5.66
| |
Auto finance
| | |
2,647,088
| | | |
26,903
| | | |
4.04
| | | |
2,514,923
| | | |
26,422
| | | |
4.17
| |
Other
| | |
9,307
|
| | |
135
|
| | |
5.72
| | | |
9,060
|
| | |
157
|
| | |
6.88
| |
Total loans and leases
| | |
17,532,581
|
| | |
212,255
|
| | |
4.82
| | | |
17,338,049
|
| | |
213,438
|
| | |
4.89
| |
Total interest-earning assets
| | |
19,884,592
| | | |
234,763
| | | |
4.70
| | | |
18,958,452
| | | |
227,174
| | | |
4.76
| |
Other assets(6) | | |
1,253,002
|
| | | | | | | | |
1,245,751
|
| | | | | | |
Total assets
| | |
$
|
21,137,594
|
| | | | | | | | |
$
|
20,204,203
|
| | | | | | |
LIABILITIES AND EQUITY: | | | | | | | | | | | | | | | | | | |
Non-interest bearing deposits:
| | | | | | | | | | | | | | | | | | |
Retail
| | |
$
|
1,773,673
| | | | | | | | | |
$
|
1,639,550
| | | | | | | |
Small business
| | |
926,388
| | | | | | | | | |
874,892
| | | | | | | |
Commercial and custodial
| | |
615,686
|
| | | | | | | | |
525,692
|
| | | | | | |
Total non-interest bearing deposits
| | |
3,315,747
| | | | | | | | | |
3,040,134
| | | | | | | |
Interest-bearing deposits:
| | | | | | | | | | | | | | | | | | |
Checking
| | |
2,454,815
| | | |
85
| | | |
0.01
| | | |
2,384,452
| | | |
124
| | | |
0.02
| |
Savings
| | |
4,670,906
| | | |
429
| | | |
0.04
| | | |
4,721,571
| | | |
466
| | | |
0.04
| |
Money market
| | |
2,429,239
| | | |
3,451
| | | |
0.57
| | | |
2,349,127
| | | |
3,649
| | | |
0.62
| |
Certificates of deposit
| | |
4,198,190
|
| | |
11,088
|
| | |
1.05
| | | |
3,793,653
|
| | |
9,533
|
| | |
1.00
| |
Total interest-bearing deposits
| | |
13,753,150
|
| | |
15,053
|
| | |
0.44
| | | |
13,248,803
|
| | |
13,772
|
| | |
0.41
| |
Total deposits
| | |
17,068,897
|
| | |
15,053
|
| | |
0.35
| | | |
16,288,937
|
| | |
13,772
|
| | |
0.34
| |
Borrowings:
| | | | | | | | | | | | | | | | | | |
Short-term borrowings
| | |
5,063
| | | |
9
| | | |
0.77
| | | |
28,364
| | | |
6
| | | |
0.09
| |
Long-term borrowings
| | |
931,720
|
| | |
5,150
|
| | |
2.21
| | | |
1,009,591
|
| | |
6,004
|
| | |
2.37
| |
Total borrowings
| | |
936,783
|
| | |
5,159
|
| | |
2.20
| | | |
1,037,955
|
| | |
6,010
|
| | |
2.31
| |
Total interest-bearing liabilities
| | |
14,689,933
|
| | |
20,212
|
| | |
0.55
| | | |
14,286,758
|
| | |
19,782
|
| | |
0.55
| |
Total deposits and borrowings
| | |
18,005,680
| | | |
20,212
| | | |
0.45
| | | |
17,326,892
| | | |
19,782
| | | |
0.45
| |
Other liabilities
| | |
695,778
|
| | | | | | | | |
595,317
|
| | | | | | |
Total liabilities
| | |
18,701,458
|
| | | | | | | | |
17,922,209
|
| | | | | | |
Total TCF Financial Corp. stockholders' equity
| | |
2,417,222
| | | | | | | | | |
2,263,018
| | | | | | | |
Non-controlling interest in subsidiaries
| | |
18,914
|
| | | | | | | | |
18,976
|
| | | | | | |
Total equity
| | |
2,436,136
|
| | | | | | | | |
2,281,994
|
| | | | | | |
Total liabilities and equity
| | |
$
|
21,137,594
|
| | | | | | | | |
$
|
20,204,203
|
| | | | | | |
Net interest income and margin | | | | | |
$
|
214,551
|
| | |
4.30
| | | | | | |
$
|
207,392
|
| | |
4.35
| |
|
(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 $157.2 million and $123.8 million for the fourth
quarters of 2016 and 2015, respectively.
|
| | |
|
|
TCF FINANCIAL CORPORATION AND SUBSIDIARIES |
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES |
(Dollars in thousands)
|
(Unaudited)
|
|
|
|
| Year Ended December 31, |
| | | 2016 |
|
| 2015 |
| | | Average |
|
| |
|
| Yields and | | | Average |
|
| |
|
| Yields and |
| | | Balance | | | Interest(1) | | | Rates(1) | | | Balance | | | Interest(1) | | | Rates(1) |
ASSETS: | | | | | | | | | | | | | | | | | | |
Investments and other
| | |
$
|
319,582
| | | |
$
|
9,314
| | | |
2.91
|
%
| | |
$
|
520,577
| | | |
$
|
12,294
| | | |
2.36
|
%
|
Securities held to maturity
| | |
190,863
| | | |
4,649
| | | |
2.44
| | | |
207,140
| | | |
5,486
| | | |
2.65
| |
Securities available for sale:(2) | | | | | | | | | | | | | | | | | | |
Taxable
| | |
719,743
| | | |
16,238
| | | |
2.26
| | | |
564,205
| | | |
13,930
| | | |
2.47
| |
Tax-exempt(3) | | |
495,708
| | | |
15,900
| | | |
3.21
| | | |
80,894
| | | |
2,643
| | | |
3.27
| |
Loans and leases held for sale
| | |
479,401
| | | |
39,648
| | | |
8.27
| | | |
286,295
| | | |
25,766
| | | |
9.00
| |
Loans and leases:(4) | | | | | | | | | | | | | | | | | | |
Consumer real estate:
| | | | | | | | | | | | | | | | | | |
Fixed-rate
| | |
2,285,647
| | | |
130,753
| | | |
5.72
| | | |
2,710,512
| | | |
157,428
| | | |
5.81
| |
Variable- and adjustable-rate
| | |
2,948,482
|
| | |
156,919
|
| | |
5.32
| | | |
2,911,689
|
| | |
149,770
|
| | |
5.14
| |
Total consumer real estate
| | |
5,234,129
| | | |
287,672
| | | |
5.50
| | | |
5,622,201
| | | |
307,198
| | | |
5.46
| |
Commercial:
| | | | | | | | | | | | | | | | | | |
Fixed-rate
| | |
972,107
| | | |
47,445
| | | |
4.88
| | | |
1,173,039
| | | |
59,037
| | | |
5.03
| |
Variable- and adjustable-rate
| | |
2,154,774
|
| | |
85,996
|
| | |
3.99
| | | |
1,961,389
|
| | |
76,677
|
| | |
3.91
| |
Total commercial
| | |
3,126,881
| | | |
133,441
| | | |
4.27
| | | |
3,134,428
| | | |
135,714
| | | |
4.33
| |
Leasing and equipment finance
| | |
4,106,718
| | | |
183,029
| | | |
4.46
| | | |
3,804,015
| | | |
175,565
| | | |
4.62
| |
Inventory finance
| | |
2,414,684
| | | |
140,453
| | | |
5.82
| | | |
2,154,357
| | | |
122,799
| | | |
5.70
| |
Auto finance
| | |
2,693,041
| | | |
110,651
| | | |
4.11
| | | |
2,278,617
| | | |
94,463
| | | |
4.15
| |
Other
| | |
9,538
|
| | |
548
|
| | |
5.74
| | | |
10,303
|
| | |
712
|
| | |
6.91
| |
Total loans and leases
| | |
17,584,991
|
| | |
855,794
|
| | |
4.87
| | | |
17,003,921
|
| | |
836,451
|
| | |
4.92
| |
Total interest-earning assets
| | |
19,790,288
| | | |
941,543
| | | |
4.76
| | | |
18,663,032
| | | |
896,570
| | | |
4.80
| |
Other assets(5) | | |
1,285,127
|
| | | | | | | | |
1,226,645
|
| | | | | | |
Total assets
| | |
$
|
21,075,415
|
| | | | | | | | |
$
|
19,889,677
|
| | | | | | |
LIABILITIES AND EQUITY: | | | | | | | | | | | | | | | | | | |
Non-interest bearing deposits:
| | | | | | | | | | | | | | | | | | |
Retail
| | |
$
|
1,778,707
| | | | | | | | | |
$
|
1,658,951
| | | | | | | |
Small business
| | |
884,192
| | | | | | | | | |
838,758
| | | | | | | |
Commercial and custodial
| | |
585,611
|
| | | | | | | | |
507,446
|
| | | | | | |
Total non-interest bearing deposits
| | |
3,248,510
| | | | | | | | | |
3,005,155
| | | | | | | |
Interest-bearing deposits:
| | | | | | | | | | | | | | | | | | |
Checking
| | |
2,452,206
| | | |
346
| | | |
0.01
| | | |
2,396,334
| | | |
547
| | | |
0.02
| |
Savings
| | |
4,677,517
| | | |
1,510
| | | |
0.03
| | | |
4,938,303
| | | |
3,005
| | | |
0.06
| |
Money market
| | |
2,488,977
| | | |
15,114
| | | |
0.61
| | | |
2,265,121
| | | |
14,237
| | | |
0.63
| |
Certificates of deposit
| | |
4,229,247
|
| | |
44,818
|
| | |
1.06
| | | |
3,340,341
|
| | |
30,437
|
| | |
0.91
| |
Total interest-bearing deposits
| | |
13,847,947
|
| | |
61,788
|
| | |
0.45
| | | |
12,940,099
|
| | |
48,226
|
| | |
0.37
| |
Total deposits
| | |
17,096,457
|
| | |
61,788
|
| | |
0.36
| | | |
15,945,254
|
| | |
48,226
|
| | |
0.30
| |
Borrowings:
| | | | | | | | | | | | | | | | | | |
Short-term borrowings
| | |
7,051
| | | |
51
| | | |
0.73
| | | |
18,822
| | | |
53
| | | |
0.28
| |
Long-term borrowings
| | |
890,846
|
| | |
20,785
|
| | |
2.33
| | | |
1,119,175
|
| | |
23,263
|
| | |
2.08
| |
Total borrowings
| | |
897,897
|
| | |
20,836
|
| | |
2.32
| | | |
1,137,997
|
| | |
23,316
|
| | |
2.05
| |
Total interest-bearing liabilities
| | |
14,745,844
|
| | |
82,624
|
| | |
0.56
| | | |
14,078,096
|
| | |
71,542
|
| | |
0.51
| |
Total deposits and borrowings
| | |
17,994,354
| | | |
82,624
| | | |
0.46
| | | |
17,083,251
| | | |
71,542
| | | |
0.42
| |
Other liabilities
| | |
686,360
|
| | | | | | | | |
589,222
|
| | | | | | |
Total liabilities
| | |
18,680,714
|
| | | | | | | | |
17,672,473
|
| | | | | | |
Total TCF Financial Corp. stockholders' equity
| | |
2,373,176
| | | | | | | | | |
2,197,690
| | | | | | | |
Non-controlling interest in subsidiaries
| | |
21,525
|
| | | | | | | | |
19,514
|
| | | | | | |
Total equity
| | |
2,394,701
|
| | | | | | | | |
2,217,204
|
| | | | | | |
Total liabilities and equity
| | |
$
|
21,075,415
|
| | | | | | | | |
$
|
19,889,677
|
| | | | | | |
Net interest income and margin | | | | | |
$
|
858,919
|
| | |
4.34
| | | | | | |
$
|
825,028
|
| | |
4.42
| |
(1)
|
|
|
Interest and yields are presented on a fully tax-equivalent basis.
|
(2)
| | |
Average balances and yields of securities available for sale are
based upon historical amortized cost and exclude equity securities.
|
(3)
| | |
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.
|
(4)
| | |
Average balances of loans and leases include non-accrual loans and
leases and are presented net of unearned income.
|
(5)
| | |
Includes leased equipment and related initial direct costs under
operating leases of $140.3 million and $104.1 million for the year
ended December 31, 2016 and 2015, respectively.
|
| | |
|
|
TCF FINANCIAL CORPORATION AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF INCOME AND FINANCIAL HIGHLIGHTS |
(Dollars in thousands, except per-share data)
|
(Unaudited)
|
|
|
| |
|
| |
|
| |
|
| |
|
| |
| | | Three Months Ended |
| | | Dec. 31, | | | Sep. 30, | | | Jun. 30, | | | Mar. 31, | | | Dec. 31, |
| | | 2016 | | | 2016 | | | 2016 | | | 2016 | | | 2015 |
Interest income: | | | | | | | | | | | | | | | |
Loans and leases
| | |
$
|
210,848
| | | |
$
|
210,765
| | | |
$
|
214,128
| | | |
$
|
214,805
| | | |
$
|
212,346
| |
Securities available for sale
| | |
7,553
| | | |
7,126
| | | |
6,396
| | | |
5,498
| | | |
4,864
| |
Securities held to maturity
| | |
1,165
| | | |
1,049
| | | |
1,116
| | | |
1,319
| | | |
1,336
| |
Loans held for sale and other
| | |
12,092
|
| | |
13,786
|
| | |
12,364
|
| | |
10,720
|
| | |
6,905
|
|
Total interest income
| | |
231,658
|
| | |
232,726
|
| | |
234,004
|
| | |
232,342
|
| | |
225,451
|
|
Interest expense: | | | | | | | | | | | | | | | |
Deposits
| | |
15,053
| | | |
15,851
| | | |
15,893
| | | |
14,991
| | | |
13,772
| |
Borrowings
| | |
5,159
|
| | |
4,857
|
| | |
5,127
|
| | |
5,693
|
| | |
6,010
|
|
Total interest expense
| | |
20,212
|
| | |
20,708
|
| | |
21,020
|
| | |
20,684
|
| | |
19,782
|
|
Net interest income
| | |
211,446
| | | |
212,018
| | | |
212,984
| | | |
211,658
| | | |
205,669
| |
Provision for credit losses
| | |
19,888
|
| | |
13,894
|
| | |
13,250
|
| | |
18,842
|
| | |
17,607
|
|
Net interest income after provision for credit losses
| | |
191,558
|
| | |
198,124
|
| | |
199,734
|
| | |
192,816
|
| | |
188,062
|
|
Non-interest income: | | | | | | | | | | | | | | | |
Fees and service charges
| | |
35,132
| | | |
35,093
| | | |
34,622
| | | |
32,817
| | | |
37,741
| |
Card revenue
| | |
13,689
| | | |
13,747
| | | |
14,083
| | | |
13,363
| | | |
13,781
| |
ATM revenue
| | |
4,806
|
| | |
5,330
|
| | |
5,288
|
| | |
5,021
|
| | |
5,143
|
|
Subtotal
| | |
53,627
| | | |
54,170
| | | |
53,993
| | | |
51,201
| | | |
56,665
| |
Gains on sales of auto loans, net
| | |
1,145
| | | |
11,624
| | | |
10,143
| | | |
11,920
| | | |
3,136
| |
Gains on sales of consumer real estate loans, net
| | |
16,676
| | | |
13,528
| | | |
10,839
| | | |
9,384
| | | |
13,104
| |
Servicing fee income
| | |
11,404
|
| | |
10,393
|
| | |
9,502
|
| | |
8,883
|
| | |
8,622
|
|
Subtotal
| | |
29,225
| | | |
35,545
| | | |
30,484
| | | |
30,187
| | | |
24,862
| |
Leasing and equipment finance
| | |
31,316
| | | |
28,289
| | | |
31,074
| | | |
28,487
| | | |
32,355
| |
Other
| | |
1,365
|
| | |
2,270
|
| | |
2,405
|
| | |
2,843
|
| | |
1,806
|
|
Fees and other revenue
| | |
115,533
| | | |
120,274
| | | |
117,956
| | | |
112,718
| | | |
115,688
| |
Gains (losses) on securities, net
| | |
135
|
| | |
(600
|
)
| | |
—
|
| | |
(116
|
)
| | |
(29
|
)
|
Total non-interest income
| | |
115,668
|
| | |
119,674
|
| | |
117,956
|
| | |
112,602
|
| | |
115,659
|
|
Non-interest expense: | | | | | | | | | | | | | | | |
Compensation and employee benefits
| | |
115,001
| | | |
117,155
| | | |
118,093
| | | |
124,473
| | | |
109,061
| |
Occupancy and equipment
| | |
38,150
| | | |
37,938
| | | |
36,884
| | | |
37,008
| | | |
37,824
| |
Other
| | |
59,235
|
| | |
59,421
|
| | |
59,416
|
| | |
53,348
|
| | |
56,930
|
|
Subtotal
| | |
212,386
| | | |
214,514
| | | |
214,393
| | | |
214,829
| | | |
203,815
| |
Operating lease depreciation
| | |
10,906
| | | |
10,038
| | | |
9,842
| | | |
9,573
| | | |
13,608
| |
Foreclosed real estate and repossessed assets, net
| | |
1,889
| | | |
4,243
| | | |
3,135
| | | |
3,920
| | | |
4,940
| |
Other credit costs, net
| | |
178
|
| | |
83
|
| | |
(54
|
)
| | |
12
|
| | |
224
|
|
Total non-interest expense
| | |
225,359
|
| | |
228,878
|
| | |
227,316
|
| | |
228,334
|
| | |
222,587
|
|
Income before income tax expense
| | |
81,867
| | | |
88,920
| | | |
90,374
| | | |
77,084
| | | |
81,134
| |
Income tax expense
| | |
29,762
|
| | |
30,257
|
| | |
29,706
|
| | |
26,803
|
| | |
26,614
|
|
Income after income tax expense
| | |
52,105
| | | |
58,663
| | | |
60,668
| | | |
50,281
| | | |
54,520
| |
Income attributable to non-controlling interest
| | |
2,013
|
| | |
2,371
|
| | |
2,974
|
| | |
2,235
|
| | |
2,028
|
|
Net income attributable to TCF Financial Corporation | | |
50,092
| | | |
56,292
| | | |
57,694
| | | |
48,046
| | | |
52,492
| |
Preferred stock dividends
| | |
4,847
|
| | |
4,847
|
| | |
4,847
|
| | |
4,847
|
| | |
4,847
|
|
Net income available to common stockholders | | |
$
|
45,245
|
| | |
$
|
51,445
|
| | |
$
|
52,847
|
| | |
$
|
43,199
|
| | |
$
|
47,645
|
|
| | | | | | | | | | | | | | |
|
Earnings per common share: | | | | | | | | | | | | | | | |
Basic
| | |
$
|
0.27
| | | |
$
|
0.31
| | | |
$
|
0.32
| | | |
$
|
0.26
| | | |
$
|
0.29
| |
Diluted
| | |
0.27
| | | |
0.31
| | | |
0.31
| | | |
0.26
| | | |
0.29
| |
| | | | | | | | | | | | | | |
|
Dividends declared per common share | | |
$
|
0.075
| | | |
$
|
0.075
| | | |
$
|
0.075
| | | |
$
|
0.075
| | | |
$
|
0.075
| |
| | | | | | | | | | | | | | |
|
Financial highlights:(1) | | | | | | | | | | | | | | | |
Return on average assets
| | |
0.99
|
%
| | |
1.12
|
%
| | |
1.14
|
%
| | |
0.96
|
%
| | |
1.08
|
%
|
Return on average common equity
| | |
8.40
| | | |
9.59
| | | |
10.09
| | | |
8.45
| | | |
9.53
| |
Net interest margin
| | |
4.30
| | | |
4.34
| | | |
4.35
| | | |
4.37
| | | |
4.35
| |
|
(1) Annualized.
|
|
|
TCF FINANCIAL CORPORATION AND SUBSIDIARIES |
CONSOLIDATED QUARTERLY AVERAGE BALANCE SHEETS |
(In thousands)
|
(Unaudited)
|
|
|
|
| Dec. 31, |
|
| Sep. 30, |
|
| Jun. 30, |
|
| Mar. 31, |
|
| Dec. 31, |
| | | 2016 | | | 2016 | | | 2016 | | | 2016 | | | 2015 |
ASSETS: | | | | | | | | | | | | | | | |
Investments and other
| | |
$
|
276,018
| | | |
$
|
331,107
| | | |
$
|
322,477
| | | |
$
|
349,079
| | | |
$
|
405,252
|
Securities held to maturity
| | |
182,177
| | | |
187,414
| | | |
194,693
| | | |
199,303
| | | |
201,944
|
Securities available for sale:(1) | | | | | | | | | | | | | | | |
Taxable
| | |
791,289
| | | |
747,890
| | | |
697,902
| | | |
640,796
| | | |
611,816
|
Tax-exempt
| | |
610,070
| | | |
570,013
| | | |
481,246
| | | |
319,427
| | | |
221,113
|
Loans and leases held for sale
| | |
492,457
| | | |
558,649
| | | |
497,797
| | | |
367,686
| | | |
180,278
|
Loans and leases:(2) | | | | | | | | | | | | | | | |
Consumer real estate:
| | | | | | | | | | | | | | | |
Fixed-rate
| | |
2,169,493
| | | |
2,216,945
| | | |
2,327,409
| | | |
2,430,773
| | | |
2,520,567
|
Variable- and adjustable-rate
| | |
2,916,653
|
| | |
2,918,631
|
| | |
2,931,318
|
| | |
3,028,001
|
| | |
3,083,957
|
Total consumer real estate
| | |
5,086,146
| | | |
5,135,576
| | | |
5,258,727
| | | |
5,458,774
| | | |
5,604,524
|
Commercial:
| | | | | | | | | | | | | | | |
Fixed-rate
| | |
948,856
| | | |
944,347
| | | |
982,914
| | | |
1,012,870
| | | |
1,090,001
|
Variable- and adjustable-rate
| | |
2,198,661
|
| | |
2,147,768
|
| | |
2,127,032
|
| | |
2,145,231
|
| | |
2,027,982
|
Total commercial
| | |
3,147,517
| | | |
3,092,115
| | | |
3,109,946
| | | |
3,158,101
| | | |
3,117,983
|
Leasing and equipment finance
| | |
4,252,543
| | | |
4,147,488
| | | |
4,032,112
| | | |
3,992,678
| | | |
3,911,025
|
Inventory finance
| | |
2,389,980
| | | |
2,272,409
| | | |
2,564,648
| | | |
2,433,534
| | | |
2,180,534
|
Auto finance
| | |
2,647,088
| | | |
2,670,272
| | | |
2,751,679
| | | |
2,703,880
| | | |
2,514,923
|
Other
| | |
9,307
|
| | |
9,252
|
| | |
9,585
|
| | |
10,018
|
| | |
9,060
|
Total loans and leases
| | |
17,532,581
|
| | |
17,327,112
|
| | |
17,726,697
|
| | |
17,756,985
|
| | |
17,338,049
|
Total interest-earning assets
| | |
19,884,592
| | | |
19,722,185
| | | |
19,920,812
| | | |
19,633,276
| | | |
18,958,452
|
Other assets(3) | | |
1,253,002
|
| | |
1,303,670
|
| | |
1,286,506
|
| | |
1,297,479
|
| | |
1,245,751
|
Total assets
| | |
$
|
21,137,594
|
| | |
$
|
21,025,855
|
| | |
$
|
21,207,318
|
| | |
$
|
20,930,755
|
| | |
$
|
20,204,203
|
| | | | | | | | | | | | | | |
|
LIABILITIES AND EQUITY: | | | | | | | | | | | | | | | |
Non-interest-bearing deposits:
| | | | | | | | | | | | | | | |
Retail
| | |
$
|
1,773,673
| | | |
$
|
1,771,840
| | | |
$
|
1,817,734
| | | |
$
|
1,751,710
| | | |
$
|
1,639,550
|
Small business
| | |
926,388
| | | |
894,761
| | | |
861,394
| | | |
853,645
| | | |
874,892
|
Commercial and custodial
| | |
615,686
|
| | |
583,430
|
| | |
582,041
|
| | |
560,983
|
| | |
525,692
|
Total non-interest bearing deposits
| | |
3,315,747
| | | |
3,250,031
| | | |
3,261,169
| | | |
3,166,338
| | | |
3,040,134
|
Interest-bearing deposits:
| | | | | | | | | | | | | | | |
Checking
| | |
2,454,815
| | | |
2,434,934
| | | |
2,478,673
| | | |
2,440,563
| | | |
2,384,452
|
Savings
| | |
4,670,906
| | | |
4,661,565
| | | |
4,677,681
| | | |
4,700,164
| | | |
4,721,571
|
Money market
| | |
2,429,239
| | | |
2,496,590
| | | |
2,557,897
| | | |
2,472,751
| | | |
2,349,127
|
Certificates of deposit
| | |
4,198,190
|
| | |
4,304,990
|
| | |
4,308,367
|
| | |
4,104,951
|
| | |
3,793,653
|
Total interest-bearing deposits
| | |
13,753,150
|
| | |
13,898,079
|
| | |
14,022,618
|
| | |
13,718,429
|
| | |
13,248,803
|
Total deposits
| | |
17,068,897
|
| | |
17,148,110
|
| | |
17,283,787
|
| | |
16,884,767
|
| | |
16,288,937
|
Borrowings:
| | | | | | | | | | | | | | | |
Short-term borrowings
| | |
5,063
| | | |
8,485
| | | |
9,100
| | | |
5,562
| | | |
28,364
|
Long-term borrowings
| | |
931,720
|
| | |
729,737
|
| | |
840,739
|
| | |
1,062,513
|
| | |
1,009,591
|
Total borrowings
| | |
936,783
|
| | |
738,222
|
| | |
849,839
|
| | |
1,068,075
|
| | |
1,037,955
|
Total interest-bearing liabilities
| | |
14,689,933
|
| | |
14,636,301
|
| | |
14,872,457
|
| | |
14,786,504
|
| | |
14,286,758
|
Total deposits and borrowings
| | |
18,005,680
| | | |
17,886,332
| | | |
18,133,626
| | | |
17,952,842
| | | |
17,326,892
|
Other liabilities
| | |
695,778
|
| | |
708,048
|
| | |
690,363
|
| | |
650,908
|
| | |
595,317
|
Total liabilities
| | |
18,701,458
|
| | |
18,594,380
|
| | |
18,823,989
|
| | |
18,603,750
|
| | |
17,922,209
|
Total TCF Financial Corporation stockholders' equity
| | |
2,417,222
| | | |
2,409,312
| | | |
2,357,509
| | | |
2,307,781
| | | |
2,263,018
|
Non-controlling interest in subsidiaries
| | |
18,914
|
| | |
22,163
|
| | |
25,820
|
| | |
19,224
|
| | |
18,976
|
Total equity
| | |
2,436,136
|
| | |
2,431,475
|
| | |
2,383,329
|
| | |
2,327,005
|
| | |
2,281,994
|
Total liabilities and equity
| | |
$
|
21,137,594
|
| | |
$
|
21,025,855
|
| | |
$
|
21,207,318
|
| | |
$
|
20,930,755
|
| | |
$
|
20,204,203
|
|
(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 $157.2 million, $138.2 million, $131.9 million,
$133.6 million and $123.8 million for the fourth quarter, third
quarter, second quarter and first quarter of 2016, and for the
fourth quarter of 2015, respectively.
|
| | |
|
|
TCF FINANCIAL CORPORATION AND SUBSIDIARIES |
CONSOLIDATED QUARTERLY YIELDS AND RATES(1)(2) |
(Unaudited)
|
|
|
|
| Dec. 31, |
|
| Sep. 30, |
|
| Jun. 30, |
|
| Mar. 31, |
|
| Dec. 31, |
| | | 2016 | | | 2016 | | | 2016 | | | 2016 | | | 2015 |
ASSETS: | | | | | | | | | | | | | | | |
Investments and other
| | |
3.35
|
%
| | |
2.86
|
%
| | |
2.99
|
%
| | |
2.55
|
%
| | |
2.59
|
%
|
Securities held to maturity
| | |
2.56
| | | |
2.24
| | | |
2.29
| | | |
2.65
| | | |
2.64
| |
Securities available for sale:(3) | | | | | | | | | | | | | | | |
Taxable
| | |
2.22
| | | |
2.23
| | | |
2.21
| | | |
2.38
| | | |
2.41
| |
Tax-exempt(4) | | |
3.18
| | | |
3.19
| | | |
3.25
| | | |
3.24
| | | |
3.26
| |
Loans and leases held for sale
| | |
7.89
| | | |
8.12
| | | |
8.05
| | | |
9.30
| | | |
9.38
| |
Loans and leases:
| | | | | | | | | | | | | | | |
Consumer real estate:
| | | | | | | | | | | | | | | |
Fixed-rate
| | |
5.57
| | | |
5.75
| | | |
5.73
| | | |
5.82
| | | |
5.73
| |
Variable- and adjustable rate
| | |
5.36
| | | |
5.29
| | | |
5.32
| | | |
5.32
| | | |
5.18
| |
Total consumer real estate
| | |
5.45
| | | |
5.49
| | | |
5.50
| | | |
5.54
| | | |
5.43
| |
Commercial:
| | | | | | | | | | | | | | | |
Fixed-rate
| | |
4.70
| | | |
4.92
| | | |
4.96
| | | |
4.94
| | | |
5.05
| |
Variable- and adjustable-rate
| | |
4.05
| | | |
3.91
| | | |
4.00
| | | |
4.00
| | | |
4.05
| |
Total commercial
| | |
4.25
| | | |
4.22
| | | |
4.30
| | | |
4.30
| | | |
4.40
| |
Leasing and equipment finance
| | |
4.43
| | | |
4.48
| | | |
4.45
| | | |
4.47
| | | |
4.55
| |
Inventory finance
| | |
5.80
| | | |
6.07
| | | |
5.74
| | | |
5.68
| | | |
5.66
| |
Auto finance
| | |
4.04
| | | |
4.06
| | | |
4.19
| | | |
4.14
| | | |
4.17
| |
Other
| | |
5.72
| | | |
5.85
| | | |
5.77
| | | |
5.63
| | | |
6.88
| |
Total loans and leases
| | |
4.82
| | | |
4.88
| | | |
4.88
| | | |
4.89
| | | |
4.89
| |
| | | | | | | | | | | | | | |
|
Total interest-earning assets
| | |
4.70
| | | |
4.76
| | | |
4.77
| | | |
4.80
| | | |
4.76
| |
| | | | | | | | | | | | | | |
|
LIABILITIES: | | | | | | | | | | | | | | | |
Interest-bearing deposits:
| | | | | | | | | | | | | | | |
Checking
| | |
0.01
| | | |
0.01
| | | |
0.02
| | | |
0.01
| | | |
0.02
| |
Savings
| | |
0.04
| | | |
0.03
| | | |
0.03
| | | |
0.03
| | | |
0.04
| |
Money market
| | |
0.57
| | | |
0.61
| | | |
0.63
| | | |
0.62
| | | |
0.62
| |
Certificates of deposit
| | |
1.05
| | | |
1.07
| | | |
1.07
| | | |
1.05
| | | |
1.00
| |
Total interest-bearing deposits
| | |
0.44
| | | |
0.45
| | | |
0.46
| | | |
0.44
| | | |
0.41
| |
Total deposits
| | |
0.35
| | | |
0.37
| | | |
0.37
| | | |
0.36
| | | |
0.34
| |
Borrowings:
| | | | | | | | | | | | | | | |
Short-term borrowings
| | |
0.77
| | | |
0.86
| | | |
0.71
| | | |
0.53
| | | |
0.09
| |
Long-term borrowings
| | |
2.21
| | | |
2.65
| | | |
2.43
| | | |
2.14
| | | |
2.37
| |
Total borrowings
| | |
2.20
| | | |
2.63
| | | |
2.42
| | | |
2.13
| | | |
2.31
| |
| | | | | | | | | | | | | | |
|
Total interest-bearing liabilities
| | |
0.55
| | | |
0.56
| | | |
0.57
| | | |
0.56
| | | |
0.55
| |
| | | | | | | | | | | | | | |
|
Net interest margin | | |
4.30
| | | |
4.34
| | | |
4.35
| | | |
4.37
| | | |
4.35
| |
(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 Dec. 31, |
|
| At Dec. 31, |
| | | | | | 2016 | | | 2015 |
Computation of tangible common equity to
tangible assets and tangible book value per common share: | |
Total equity
| | | | | |
$
|
2,444,645
| | | |
$
|
2,306,917
| |
Less: Non-controlling interest in subsidiaries
| | | | | |
17,162
|
| | |
16,001
|
|
Total TCF Financial Corporation stockholders' equity
| | | | | |
2,427,483
| | | |
2,290,916
| |
Less: Preferred stock
| | | | | |
263,240
|
| | |
263,240
|
|
Total common stockholders' equity
| | |
(a)
| | |
2,164,243
| | | |
2,027,676
| |
Less:
| | | | | | | | | |
Goodwill
| | | | | |
225,640
| | | |
225,640
| |
Other intangibles
| | | | | |
1,738
|
| | |
3,126
|
|
Tangible common equity
| | |
(b)
| | |
$
|
1,936,865
|
| | |
$
|
1,798,910
|
|
| | | | | | | | |
|
Total assets
| | |
(c)
| | |
$
|
21,441,326
| | | |
$
|
20,689,609
| |
Less:
| | | | | | | | | |
Goodwill
| | | | | |
225,640
| | | |
225,640
| |
Other intangibles
| | | | | |
1,738
|
| | |
3,126
|
|
Tangible assets
| | |
(d)
| | |
$
|
21,213,948
|
| | |
$
|
20,460,843
|
|
| | | | | | | | |
|
Common stock shares outstanding
| | |
(e)
| | |
170,991,940
| | | |
169,844,464
| |
| | | | | | | | |
|
Common equity to assets
| | |
(a) / (c)
| | |
10.09
|
%
| | |
9.80
|
%
|
Tangible common equity to tangible assets
| | |
(b) / (d)
| | |
9.13
|
%
| | |
8.79
|
%
|
| | | | | | | | |
|
Book value per common share
| | |
(a) / (e)
| | |
$
|
12.66
| | | |
$
|
11.94
| |
Tangible book value per common share
| | |
(b) / (e)
| | |
$
|
11.33
| | | |
$
|
10.59
| |
|
|
| |
|
| Three Months Ended |
|
| Year Ended |
| | | | | | Dec. 31, |
|
| Sep. 30, |
|
| Dec. 31, | | | Dec. 31, |
|
| Dec. 31, |
| | | | | | 2016 | | | 2016 | | | 2015 | | | 2016 | | | 2015 |
Computation of return on average tangible
common equity: | | | | | | | | | | | | | | | |
Net income available to common stockholders
| | |
(f)
| | |
$
|
45,245
| | | |
$
|
51,445
| | | |
$
|
47,645
| | | |
$
|
192,736
| | | |
$
|
177,735
| |
Plus: Other intangibles amortization
| | | | | |
290
| | | |
366
| | | |
392
| | | |
1,388
| | | |
1,562
| |
Less: Income tax expense attributable to other intangibles
amortization
| | | | | |
103
|
| | |
128
|
| | |
141
|
| | |
493
|
| | |
562
|
|
Adjusted net income available to common stockholders
| | |
(g)
| | |
$
|
45,432
|
| | |
$
|
51,683
|
| | |
$
|
47,896
|
| | |
$
|
193,631
|
| | |
$
|
178,735
|
|
| | | | | | | | | | | | | | | | | |
|
Average balances:
| | | | | | | | | | | | | | | | | | |
Total equity
| | | | | |
$
|
2,436,136
| | | |
$
|
2,431,475
| | | |
$
|
2,281,994
| | | |
$
|
2,394,701
| | | |
$
|
2,217,204
| |
Less: Non-controlling interest in subsidiaries
| | | | | |
18,914
|
| | |
22,163
|
| | |
18,976
|
| | |
21,525
|
| | |
19,514
|
|
Total TCF Financial Corporation stockholders' equity
| | | | | |
2,417,222
| | | |
2,409,312
| | | |
2,263,018
| | | |
2,373,176
| | | |
2,197,690
| |
Less: Preferred stock
| | | | | |
263,240
|
| | |
263,240
|
| | |
263,240
|
| | |
263,240
|
| | |
263,240
|
|
Average total common stockholders' equity
| | |
(h)
| | |
2,153,982
| | | |
2,146,072
| | | |
1,999,778
| | | |
2,109,936
| | | |
1,934,450
| |
Less:
| | | | | | | | | | | | | | | | | | |
Goodwill
| | | | | |
225,640
| | | |
225,640
| | | |
225,640
| | | |
225,640
| | | |
225,640
| |
Other intangibles
| | | | | |
1,872
|
| | |
2,233
|
| | |
3,342
|
| | |
2,414
|
| | |
3,913
|
|
Average tangible common equity
| | |
(i)
| | |
$
|
1,926,470
|
| | |
$
|
1,918,199
|
| | |
$
|
1,770,796
|
| | |
$
|
1,881,882
|
| | |
$
|
1,704,897
|
|
| | | | | | | | | | | | | | | | | |
|
Return on average common equity(2) | | |
(f) / (h)
| | |
8.40
|
%
| | |
9.59
|
%
| | |
9.53
|
%
| | |
9.13
|
%
| | |
9.19
|
%
|
Return on average tangible common equity(2) | | |
(g) / (i)
| | |
9.43
|
%
| | |
10.78
|
%
| | |
10.82
|
%
| | |
10.29
|
%
| | |
10.48
|
%
|
(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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Contacts:
TCF Financial Corporation
Media
Mark Goldman, 952-475-7050
news@tcfbank.com
or
Investors
Jason
Korstange, 952-745-2755
investor@tcfbank.com
Source: TCF Financial Corporation
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