FIRST QUARTER HIGHLIGHTS
- Revenue of $324.3 million, up 6.6 percent from the first quarter of
2015
- Non-interest expense of $228.3 million, up 0.7 percent from the first
quarter of 2015
- Efficiency ratio of 70.4 percent, down 416 basis points from the first
quarter of 2015
- Period-end loans and leases of $17.9 billion, up 4.7 percent from the
first quarter of 2015
- Average deposits of $16.9 billion, up 7.9 percent from the first
quarter of 2015
- Net charge-offs as a percentage of average loans and leases of 0.27
percent, down 1 basis point from the first quarter of 2015
- Non-accrual loans and leases of $198.6 million, down 10.6 percent from
the first quarter of 2015
Company Website:
http://ir.tcfbank.com
WAYZATA, Minn. -- (Business Wire)
TCF Financial Corporation (NYSE:TCB):
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Summary of Financial Results |
|
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| Table 1 |
|
| |
| |
| |
| Percent Change |
(Dollars in thousands, except per-share data)
| | 1Q | | 4Q | | 1Q | | 1Q16 vs |
| 1Q16 vs |
| | 2016 |
| 2015 |
| 2015 |
| 4Q15 |
| 1Q15 |
Net income attributable to TCF
| |
$
|
48,046
| | |
$
|
52,492
| | |
$
|
39,801
| | |
(8.5
|
)%
| |
20.7
|
%
|
Net interest income
| |
211,658
| | |
205,669
| | |
203,420
| | |
2.9
| | |
4.0
| |
Diluted earnings per common share
| |
0.26
| | |
0.29
| | |
0.21
| | |
(10.3
|
)
| |
23.8
| |
| | | | | | | | | |
|
Financial Ratios(1) | | | | | | | | | | |
Pre-tax pre-provision return on average assets(2) | |
1.83
|
%
| |
1.95
|
%
| |
1.58
|
%
| | | | |
Return on average assets
| |
0.96
| | |
1.08
| | |
0.85
| | | | | |
Return on average common equity
| |
8.45
| | |
9.53
| | |
7.47
| | | | | |
Return on average tangible common equity(3) | |
9.57
| | |
10.82
| | |
8.58
| | | | | |
Net interest margin
| |
4.37
| | |
4.35
| | |
4.50
| | | | | |
Net charge-offs as a percentage of average loans and leases
| |
0.27
| | |
0.29
| | |
0.28
| | | | | |
| | | | | | | | | |
|
(1) Annualized.
|
(2) Pre-tax pre-provision profit is calculated as total revenues
less non-interest expense.
|
(3) See "Reconciliation of GAAP to Non-GAAP Financial Measures"
table.
|
|
TCF Financial Corporation ("TCF" or the "Company") (NYSE:TCB) today
reported net income of $48.0 million for the first quarter of 2016,
compared with net income of $39.8 million for the first quarter of 2015,
and net income of $52.5 million for the fourth quarter of 2015. Diluted
earnings per common share was 26 cents for the first quarter of 2016,
compared with 21 cents for the first quarter of 2015, and 29 cents for
the fourth quarter of 2015.
"TCF reported strong first quarter results as we continued to emphasize
our four strategic pillars of diversification, profitable growth,
operating leverage and core funding, in all areas of the organization,"
said Craig R. Dahl, president and chief executive officer. "Our
consistent and sustainable loan and lease origination capabilities,
funded by a growing deposit base, continued to drive revenue growth and
diversification. Meanwhile, credit quality showed additional improvement
as net charge-offs, delinquencies as a percentage of portfolio and
non-performing assets all decreased during the quarter. Finally, we took
another step toward improving our operating efficiencies by announcing,
as part of extending our retail banking relationship with Jewel-Osco,
plans to close 33 in-store branches in Chicago, replacing them with full
function, image-enabled ATMs.
"Based on these results, I am more encouraged than ever by the
strategies and teams we have in place. We will continue to execute on
our strategic pillars with the ultimate goal of accelerating value
creation for our shareholders."
Revenue |
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| |
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Total Revenue |
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|
|
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|
| Table 2 |
| | | | | | | | Percent Change |
(Dollars in thousands)
| | 1Q | | 4Q | | 1Q | | 1Q16 vs | | 1Q16 vs |
| | 2016 |
| 2015 |
| 2015 |
| 4Q15 |
| 1Q15 |
Net interest income
| |
$
|
211,658
|
|
|
$
|
205,669
|
|
|
$
|
203,420
|
| |
2.9
|
%
| |
4.0
|
%
|
Non-interest income:
| | | | | | | | | | |
Fees and service charges
| |
32,817
| | |
37,741
| | |
33,972
| | |
(13.0
|
)
| |
(3.4
|
)
|
Card revenue
| |
13,363
| | |
13,781
| | |
12,901
| | |
(3.0
|
)
| |
3.6
| |
ATM revenue
| |
5,021
|
|
|
5,143
|
|
|
5,122
|
| |
(2.4
|
)
| |
(2.0
|
)
|
Subtotal
| |
51,201
| | |
56,665
| | |
51,995
| | |
(9.6
|
)
| |
(1.5
|
)
|
Gains on sales of auto loans, net
| |
11,920
| | |
3,136
| | |
6,265
| | |
N.M.
| |
90.3
| |
Gains on sales of consumer real estate loans, net
| |
9,384
| | |
13,104
| | |
8,763
| | |
(28.4
|
)
| |
7.1
| |
Servicing fee income
| |
8,883
|
|
|
8,622
|
|
|
7,342
|
| |
3.0
| | |
21.0
| |
Subtotal
| |
30,187
| | |
24,862
| | |
22,370
| | |
21.4
| | |
34.9
| |
Leasing and equipment finance
| |
28,487
| | |
32,355
| | |
22,224
| | |
(12.0
|
)
| |
28.2
| |
Other
| |
2,843
|
|
|
1,806
|
|
|
4,127
|
| |
57.4
| | |
(31.1
|
)
|
Fees and other revenue
| |
112,718
| | |
115,688
| | |
100,716
| | |
(2.6
|
)
| |
11.9
| |
Gains (losses) on securities, net
| |
(116
|
)
|
|
(29
|
)
|
|
(78
|
)
| |
N.M.
| |
(48.7
|
)
|
Total non-interest income
| |
112,602
|
|
|
115,659
|
|
|
100,638
|
| |
(2.6
|
)
| |
11.9
| |
Total revenue
| |
$
|
324,260
|
|
|
$
|
321,328
|
|
|
$
|
304,058
|
| |
0.9
| | |
6.6
| |
| | | | | | | | | |
|
Net interest margin(1) | |
4.37
|
%
| |
4.35
|
%
| |
4.50
|
%
| | | | |
Total non-interest income as a percentage of total revenue
| |
34.7
| | |
36.0
| | |
33.1
| | | | | |
| | | | | | | | | |
|
N.M. Not Meaningful.
| | | | | | | | | | |
(1) Annualized.
|
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| | | | | | | | | |
|
Net Interest Income
-
Net interest income for the first quarter of 2016 increased $8.2
million, or 4.0 percent, compared with the first quarter of 2015. The
increase was primarily due to higher average loan and lease balances
in the auto finance, inventory finance and leasing and equipment
finance portfolios, partially offset by the run-off of consumer real
estate first mortgage lien balances, overall net margin compression
and higher promotional rates paid on certificates of deposit.
-
Net interest income for the first quarter of 2016 increased $6.0
million, or 2.9 percent, compared with the fourth quarter of 2015. The
increase was primarily due to higher than expected seasonality in
average loan balances in the inventory finance portfolio and higher
average loan balances in the auto finance portfolio due to maturation
of the business model, partially offset by higher promotional rates
paid on certificates of deposit.
-
Net interest margin for the first quarter of 2016 was 4.37 percent,
compared with 4.50 percent for the first quarter of 2015 and 4.35
percent for the fourth quarter of 2015. The decrease compared with the
first quarter of 2015 was primarily due to margin compression
resulting from the impact of the competitive low interest rate
environment and higher rates paid on certificates of deposit. The
increase compared with the fourth quarter of 2015 was primarily due to
higher average loan balances in the inventory finance portfolio,
partially offset by higher rates paid on certificates of deposit.
Non-interest Income
-
Fees and service charges in the first quarter of 2016 were $32.8
million, down $1.2 million, or 3.4 percent, from the first quarter of
2015 and down $4.9 million, or 13.0 percent, from the fourth quarter
of 2015. The decrease compared with the first quarter of 2015 was
primarily due to ongoing consumer behavior changes, as well as higher
average checking account balances per customer. The decrease compared
with the fourth quarter of 2015 was primarily due to seasonality, as
well as higher average checking account balances per customer.
-
TCF sold $444.3 million, $203.5 million and $271.1 million of auto
loans during the first quarters of 2016 and 2015, and the fourth
quarter of 2015, respectively, resulting in net gains in each
respective period.
-
TCF sold $321.4 million, $264.3 million and $389.1 million of consumer
real estate loans during the first quarters of 2016 and 2015, and the
fourth quarter of 2015, respectively, resulting in net gains in each
respective period. TCF has two consumer real estate loan sale
programs; one that sells nationally originated junior lien loans and
the other that originates first mortgage lien loans in our primary
banking markets and sells the loans through a correspondent
relationship.
-
Servicing fee income was $8.9 million on $4.4 billion of average loans
and leases serviced for others during the first quarter of 2016,
compared with $7.3 million on $3.5 billion for the first quarter of
2015 and $8.6 million on $4.2 billion for the fourth quarter of 2015.
The increases from both periods were primarily due to the cumulative
effect of the increase in the portfolio of auto and consumer real
estate loans sold with servicing retained by TCF.
Loans and Leases |
|
|
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|
Period-End and Average Loans and Leases | Table 3 |
|
| |
| |
| |
| Percent Change |
(Dollars in thousands)
| | 1Q | | 4Q | | 1Q | | 1Q16 vs | | 1Q16 vs |
| | 2016 |
| 2015 |
| 2015 |
| 4Q15 |
| 1Q15 |
Period-End: | | | | | | | | | | |
Consumer real estate:
| | | | | | | | | | |
First mortgage lien
| |
$
|
2,521,492
| | |
$
|
2,624,956
| | |
$
|
3,011,166
| | |
(3.9
|
)%
| |
(16.3
|
)%
|
Junior lien
| |
2,729,075
|
|
|
2,839,316
|
|
|
2,597,895
|
| |
(3.9
|
)
| |
5.0
| |
Total consumer real estate
| |
5,250,567
| | |
5,464,272
| | |
5,609,061
| | |
(3.9
|
)
| |
(6.4
|
)
|
Commercial
| |
3,114,594
| | |
3,145,832
| | |
3,205,599
| | |
(1.0
|
)
| |
(2.8
|
)
|
Leasing and equipment finance
| |
4,005,934
| | |
4,012,248
| | |
3,729,386
| | |
(0.2
|
)
| |
7.4
| |
Inventory finance
| |
2,676,675
| | |
2,146,754
| | |
2,336,518
| | |
24.7
| | |
14.6
| |
Auto finance
| |
2,786,731
| | |
2,647,596
| | |
2,156,139
| | |
5.3
| | |
29.2
| |
Other
| |
18,940
|
|
|
19,297
|
|
|
20,448
|
| |
(1.9
|
)
| |
(7.4
|
)
|
Total
| |
$
|
17,853,441
|
|
|
$
|
17,435,999
|
|
|
$
|
17,057,151
|
| |
2.4
| | |
4.7
| |
| | | | | | | | | |
|
Average: | | | | | | | | | | |
Consumer real estate:
| | | | | | | | | | |
First mortgage lien
| |
$
|
2,573,915
| | |
$
|
2,670,355
| | |
$
|
3,076,802
| | |
(3.6
|
)%
| |
(16.3
|
)%
|
Junior lien
| |
2,884,859
|
|
|
2,934,169
|
|
|
2,614,538
|
| |
(1.7
|
)
| |
10.3
| |
Total consumer real estate
| |
5,458,774
| | |
5,604,524
| | |
5,691,340
| | |
(2.6
|
)
| |
(4.1
|
)
|
Commercial
| |
3,158,101
| | |
3,117,983
| | |
3,154,008
| | |
1.3
| | |
0.1
| |
Leasing and equipment finance
| |
3,992,678
| | |
3,911,025
| | |
3,729,481
| | |
2.1
| | |
7.1
| |
Inventory finance
| |
2,433,534
| | |
2,180,534
| | |
2,108,871
| | |
11.6
| | |
15.4
| |
Auto finance
| |
2,703,880
| | |
2,514,923
| | |
2,021,144
| | |
7.5
| | |
33.8
| |
Other
| |
10,018
|
|
|
9,060
|
|
|
11,616
|
| |
10.6
| | |
(13.8
|
)
|
Total
| |
$
|
17,756,985
|
|
|
$
|
17,338,049
|
|
|
$
|
16,716,460
|
| |
2.4
| | |
6.2
| |
| | | | | | | | | | | | | | | | | |
|
-
Period-end loans and leases were $17.9 billion at March 31, 2016, an
increase of $0.8 billion, or 4.7 percent, compared with March 31, 2015
and an increase of $0.4 billion, or 2.4 percent, compared with
December 31, 2015. Average loans and leases were $17.8 billion for the
first quarter of 2016, an increase of $1.0 billion, or 6.2 percent,
compared with the first quarter of 2015 and an increase of
$0.4 billion, or 2.4 percent, compared with the fourth quarter of 2015.
The
increases from the first quarter of 2015 were primarily due to the
maturation of the business model in auto finance and increased
seasonality in the early shipment of spring product and expansion of
the number of active dealers in inventory finance, as well as an
increase in the leasing and equipment finance portfolio due to strong
fourth quarter originations, partially offset by run-off in the
consumer real estate first mortgage lien portfolio. The increases from
the fourth quarter of 2015 were primarily due to seasonally higher
balances in the inventory finance portfolio and continued growth in
the auto finance portfolio, partially offset by a decrease in the
total consumer real estate portfolio.
-
Loan and lease originations were $4.0 billion for the first quarter of
2016, an increase of $0.5 billion, or 13.1 percent, compared with the
first quarter of 2015 and an increase of $0.2 billion, or 4.8 percent,
compared with the fourth quarter of 2015. The increase from the first
quarter of 2015 was primarily due to strong growth in the lawn and
garden segment of inventory finance and increases in auto finance and
leasing and equipment finance originations, partially offset by
decreases in commercial and consumer real estate originations. The
increase from the fourth quarter of 2015 was primarily due to
seasonally higher inventory finance originations and the continued
growth in auto finance, partially offset by decreases in leasing and
equipment finance, commercial and consumer real estate originations.
Credit Quality |
| |
| |
| |
| |
| |
| |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Trends |
|
|
|
|
|
|
|
|
|
|
|
|
| Table 4 |
| | | | | | | | | | | | Change |
(Dollars in thousands)
| | 1Q | | 4Q | | 3Q | | 2Q | | 1Q | | 1Q16 vs | | 1Q16 vs |
| | 2016 |
| 2015 |
| 2015 |
| 2015 |
| 2015 |
| 4Q15 |
| 1Q15 |
Over 60-day delinquencies as a percentage of period-end loans and
leases(1) | |
0.10
|
%
| |
0.11
|
%
| |
0.17
|
%
| |
0.10
|
%
| |
0.14
|
%
| |
(1
|
) bps
| |
(4
|
) bps
|
Net charge-offs as a percentage of average loans and leases(2) | |
0.27
| | |
0.29
| | |
0.23
| | |
0.41
| | |
0.28
| | |
(2
|
)
| |
(1
|
)
|
Non-accrual loans and leases and other real estate owned
| |
$
|
241,090
| | |
$
|
250,448
| | |
$
|
264,694
| | |
$
|
263,717
| | |
$
|
284,541
| | |
(3.7
|
)%
| |
(15.3
|
)%
|
Provision for credit losses
| |
18,842
| | |
17,607
| | |
10,018
| | |
12,528
| | |
12,791
| | |
7.0
| | |
47.3
| |
|
(1) Excludes acquired portfolios and non-accrual loans and leases.
|
(2) Annualized.
|
|
-
The over 60-day delinquency rate, excluding acquired portfolios and
non-accrual loans and leases, was 0.10 percent at March 31, 2016, down
from 0.14 percent at March 31, 2015, and down from 0.11 percent at
December 31, 2015. The decreases from both periods were primarily due
to the stabilization of the consumer real estate portfolio as economic
conditions improved in our markets.
-
The net charge-off rate was 0.27 percent for the first quarter of
2016, down from 0.28 percent for the first quarter of 2015, and down
from 0.29 percent for the fourth quarter of 2015. The decrease from
the first 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 decrease from the
fourth quarter of 2015 was due to net recoveries in the commercial
portfolio and decreased net charge-offs in the leasing and equipment
finance portfolio.
-
Non-accrual loans and leases and other real estate owned was $241.1
million at March 31, 2016, a decrease of $43.5 million, or 15.3
percent, from March 31, 2015, and a decrease of $9.4 million, or 3.7
percent, from December 31, 2015. The decreases from both periods were
primarily due to increased sales of consumer real estate properties,
improving credit quality trends and continued efforts to actively work
out problem loans in the commercial portfolio.
-
Provision for credit losses was $18.8 million for the first quarter of
2016, an increase of $6.1 million, or 47.3 percent, from the first
quarter of 2015, and an increase of $1.2 million, or 7.0 percent, from
the fourth quarter of 2015. The increase from the first quarter of
2015 was primarily due to increased reserve requirements related to
changes in economic outlook, growth in the auto finance, inventory
finance, and leasing and equipment finance portfolios and increased
net charge-offs in the auto finance portfolio due primarily to
maturation of the portfolio. The increase from the fourth quarter of
2015 was primarily due to increased reserve requirements related to
changes in economic outlook and growth in the inventory finance
portfolio.
Deposits |
| |
| |
| |
| |
| |
|
|
|
|
|
|
|
|
|
|
|
Average Deposits |
|
|
|
|
|
|
|
|
| Table 5 |
| | | | | | | | Percent Change |
(Dollars in thousands)
| | 1Q | | 4Q | | 1Q | | 1Q16 vs | | 1Q16 vs |
| | 2016 |
| 2015 |
| 2015 |
| 4Q15 |
| 1Q15 |
| | | | | | | | | |
|
Checking
| |
$
|
5,593,300
| | |
$
|
5,412,454
| | |
$
|
5,300,699
| | |
3.3
|
%
| |
5.5
|
%
|
Savings
| |
4,713,765
| | |
4,733,703
| | |
5,161,697
| | |
(0.4
|
)
| |
(8.7
|
)
|
Money market
| |
2,472,751
| | |
2,349,127
| | |
2,149,340
| | |
5.3
| | |
15.0
| |
Certificates of deposit
| |
4,104,951
|
|
|
3,793,653
|
|
|
3,041,790
|
| |
8.2
| | |
35.0
| |
Total average deposits
| |
$
|
16,884,767
|
|
|
$
|
16,288,937
|
|
|
$
|
15,653,526
|
| |
3.7
| | |
7.9
| |
| | | | | | | | | |
|
Average interest rate on deposits(1) | |
0.36
|
%
| |
0.34
|
%
| |
0.29
|
%
| | | | |
| | | | | | | | | |
|
(1) Annualized.
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | |
|
-
Total average deposits for the first quarter of 2016 increased
$1.2 billion, or 7.9 percent, from the first quarter of 2015 and
increased $0.6 billion, or 3.7 percent, from the fourth quarter of
2015. The increases from both periods were primarily due to special
campaigns for certificates of deposit and money market accounts.
-
The average interest rate on deposits for the first quarter of 2016
was 0.36 percent, up 7 basis points from the first quarter of 2015 and
up 2 basis points from the fourth quarter of 2015. The increases from
both periods were primarily due to increased average interest rates
resulting from promotions for certificates of deposit.
Non-interest Expense |
| |
| |
| |
| |
| |
|
|
|
|
|
|
|
|
|
|
|
Non-interest Expense |
|
|
|
|
|
|
|
|
| Table 6 |
| | | | | | | | Change |
(Dollars in thousands)
| | 1Q | | 4Q | | 1Q | | 1Q16 vs | | 1Q16 vs |
| | 2016 |
| 2015 |
| 2015 |
| 4Q15 |
| 1Q15 |
| | | | | | | | | |
|
Compensation and employee benefits
| |
$
|
124,473
| | |
$
|
109,061
| | |
$
|
115,815
| | |
14.1
|
%
| |
7.5
|
%
|
Occupancy and equipment
| |
37,008
| | |
37,824
| | |
36,827
| | |
(2.2
|
)
| |
0.5
| |
FDIC insurance
| |
4,113
| | |
5,173
| | |
5,393
| | |
(20.5
|
)
| |
(23.7
|
)
|
Advertising and marketing
| |
5,887
| | |
5,316
| | |
6,523
| | |
10.7
| | |
(9.8
|
)
|
Other
| |
43,348
|
|
|
46,441
|
|
|
48,133
|
| |
(6.7
|
)
| |
(9.9
|
)
|
Subtotal
| |
214,829
| | |
203,815
| | |
212,691
| | |
5.4
| | |
1.0
| |
Operating lease depreciation
| |
9,573
| | |
13,608
| | |
7,734
| | |
(29.7
|
)
| |
23.8
| |
Foreclosed real estate and repossessed assets, net
| |
3,920
| | |
4,940
| | |
6,196
| | |
(20.6
|
)
| |
(36.7
|
)
|
Other credit costs, net
| |
12
|
|
|
224
|
|
|
146
|
| |
(94.6
|
)
| |
(91.8
|
)
|
Total non-interest expense
| |
$
|
228,334
|
|
|
$
|
222,587
|
|
|
$
|
226,767
|
| |
2.6
| | |
0.7
| |
| | | | | | | | | |
|
Efficiency ratio
| |
70.42
|
%
| |
69.27
|
%
| |
74.58
|
%
| |
115
|
bps
| |
(416
|
)bps
|
| | | | | | | | | | | | | | |
|
-
Compensation and employee benefits expense increased $8.7 million, or
7.5 percent, from the first quarter of 2015 and increased $15.4
million, or 14.1 percent, from the fourth quarter of 2015. The
increase from the first quarter of 2015 was primarily due to increased
staff levels to support the continued growth of auto finance and
higher incentives based on production results. The increase from the
fourth quarter of 2015 was primarily due to seasonality of payroll
taxes, higher incentives based on production results and non-recurring
items in the fourth quarter of 2015, including the annual pension plan
valuation adjustment resulting from an increase to the discount rate.
-
Operating lease depreciation is a transactional cost that is typically
more than offset by increases in leasing and equipment finance
non-interest income.
Capital |
| |
| |
|
|
|
|
|
Capital Information |
|
|
| Table 7 |
| | | |
|
(Dollars in thousands, except per-share data)
| | 1Q 2016 | | 4Q 2015 |
Total equity
| |
$
|
2,368,841
| | |
$
|
2,306,917
| |
Book value per common share
| |
12.19
| | |
11.94
| |
Tangible book value per common share(1) | |
10.85
| | |
10.59
| |
Tangible common equity to tangible assets(1) | |
8.78
|
%
| |
8.79
|
%
|
Capital accumulation rate(2) | |
8.73
| | |
10.44
| |
| | | |
|
Regulatory Capital: | | 1Q 2016(3) | | 4Q 2015 |
Common equity Tier 1 capital
| |
$
|
1,854,048
| | |
$
|
1,814,442
| |
Tier 1 capital
| |
2,139,609
| | |
2,092,195
| |
Total capital
| |
2,527,888
| | |
2,487,060
| |
| | | |
|
Regulatory Capital Ratios: | | | | |
Common equity Tier 1 capital ratio
| |
9.98
|
%
| |
10.00
|
%
|
Tier 1 risk-based capital ratio
| |
11.51
| | |
11.54
| |
Total risk-based capital ratio
| |
13.60
| | |
13.71
| |
Tier 1 leverage ratio
| |
10.33
| | |
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 1Q 2016 are preliminary
pending completion and filing of the Company's regulatory reports.
|
|
-
TCF maintained strong capital ratios as the Company accumulates
capital through earnings. The decreases in the regulatory capital
ratios from the fourth quarter of 2015 were primarily the result of
asset growth.
-
On April 20, 2016, TCF's Board of Directors declared a regular
quarterly cash dividend of 7.5 cents per common share, payable on
June 1, 2016, to stockholders of record at the close of business on
May 13, 2016. TCF also declared dividends on the 7.50% Series A and
6.45% Series B Non-Cumulative Perpetual Preferred Stock, both payable
on June 1, 2016, to stockholders of record at the close of business on
May 13, 2016.
Webcast Information
A live webcast of TCF's conference call to discuss the first quarter
earnings will be hosted at TCF's website, http://ir.tcfbank.com,
on April 21, 2016 at 9:00 a.m. CDT. A slide presentation for the call
will be available on the website prior to the call. Additionally, the
webcast will be available for replay on TCF's website after the
conference call. The website also includes free access to company news
releases, TCF's annual report, investor presentations and SEC filings.
TCF is a Wayzata, Minnesota-based national bank holding company. As
of March 31, 2016, TCF had $21.3 billion in total assets and 376
branches in Illinois, Minnesota, Michigan, Colorado, Wisconsin, Arizona,
South Dakota and Indiana, 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 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 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 cross-selling opportunities; 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 March 31, | | Change |
| | 2016 | | 2015 | | $ | | % |
Interest income: | | | | | | | | |
Loans and leases
| |
$
|
214,805
| | |
$
|
205,976
| | |
$
|
8,829
| | |
4.3
|
%
|
Securities available for sale
| |
5,498
| | |
3,080
| | |
2,418
| | |
78.5
| |
Securities held to maturity
| |
1,319
| | |
1,405
| | |
(86
|
)
| |
(6.1
|
)
|
Investments and other
| |
10,720
|
| |
9,333
|
| |
1,387
|
| |
14.9
| |
Total interest income
| |
232,342
|
| |
219,794
|
| |
12,548
|
| |
5.7
| |
Interest expense: | | | | | | | | |
Deposits
| |
14,991
| | |
11,072
| | |
3,919
| | |
35.4
| |
Borrowings
| |
5,693
|
| |
5,302
|
| |
391
|
| |
7.4
| |
Total interest expense
| |
20,684
|
| |
16,374
|
| |
4,310
|
| |
26.3
| |
Net interest income
| |
211,658
| | |
203,420
| | |
8,238
| | |
4.0
| |
Provision for credit losses
| |
18,842
|
| |
12,791
|
| |
6,051
|
| |
47.3
| |
Net interest income after provision for credit losses
| |
192,816
|
| |
190,629
|
| |
2,187
|
| |
1.1
| |
Non-interest income: | | | | | | | | |
Fees and service charges
| |
32,817
| | |
33,972
| | |
(1,155
|
)
| |
(3.4
|
)
|
Card revenue
| |
13,363
| | |
12,901
| | |
462
| | |
3.6
| |
ATM revenue
| |
5,021
|
| |
5,122
|
| |
(101
|
)
| |
(2.0
|
)
|
Subtotal
| |
51,201
| | |
51,995
| | |
(794
|
)
| |
(1.5
|
)
|
Gains on sales of auto loans, net
| |
11,920
| | |
6,265
| | |
5,655
| | |
90.3
| |
Gains on sales of consumer real estate loans, net
| |
9,384
| | |
8,763
| | |
621
| | |
7.1
| |
Servicing fee income
| |
8,883
|
| |
7,342
|
| |
1,541
|
| |
21.0
| |
Subtotal
| |
30,187
| | |
22,370
| | |
7,817
| | |
34.9
| |
Leasing and equipment finance
| |
28,487
| | |
22,224
| | |
6,263
| | |
28.2
| |
Other
| |
2,843
|
| |
4,127
|
| |
(1,284
|
)
| |
(31.1
|
)
|
Fees and other revenue
| |
112,718
| | |
100,716
| | |
12,002
| | |
11.9
| |
Gains (losses) on securities, net
| |
(116
|
)
| |
(78
|
)
| |
(38
|
)
| |
(48.7
|
)
|
Total non-interest income
| |
112,602
|
| |
100,638
|
| |
11,964
|
| |
11.9
| |
Non-interest expense: | | | | | | | | |
Compensation and employee benefits
| |
124,473
| | |
115,815
| | |
8,658
| | |
7.5
| |
Occupancy and equipment
| |
37,008
| | |
36,827
| | |
181
| | |
0.5
| |
FDIC insurance
| |
4,113
| | |
5,393
| | |
(1,280
|
)
| |
(23.7
|
)
|
Advertising and marketing
| |
5,887
| | |
6,523
| | |
(636
|
)
| |
(9.8
|
)
|
Other
| |
43,348
|
| |
48,133
|
| |
(4,785
|
)
| |
(9.9
|
)
|
Subtotal
| |
214,829
| | |
212,691
| | |
2,138
| | |
1.0
| |
Operating lease depreciation
| |
9,573
| | |
7,734
| | |
1,839
| | |
23.8
| |
Foreclosed real estate and repossessed assets, net
| |
3,920
| | |
6,196
| | |
(2,276
|
)
| |
(36.7
|
)
|
Other credit costs, net
| |
12
|
| |
146
|
| |
(134
|
)
| |
(91.8
|
)
|
Total non-interest expense
| |
228,334
|
| |
226,767
|
| |
1,567
|
| |
0.7
| |
Income before income tax expense
| |
77,084
| | |
64,500
| | |
12,584
| | |
19.5
| |
Income tax expense
| |
26,803
|
| |
22,828
|
| |
3,975
|
| |
17.4
| |
Income after income tax expense
| |
50,281
| | |
41,672
| | |
8,609
| | |
20.7
| |
Income attributable to non-controlling interest
| |
2,235
|
| |
1,871
|
| |
364
|
| |
19.5
| |
Net income attributable to TCF Financial Corporation | |
48,046
|
| |
39,801
|
| |
8,245
|
| |
20.7
| |
Preferred stock dividends
| |
4,847
|
| |
4,847
|
| |
—
|
| |
—
| |
Net income available to common stockholders | |
$
|
43,199
|
| |
$
|
34,954
|
| |
$
|
8,245
|
| |
23.6
| |
| | | | | | | |
|
Net income per common share: | | | | | | | | |
Basic
| |
$
|
0.26
| | |
$
|
0.21
| | |
$
|
0.05
| | |
23.8
|
%
|
Diluted
| |
0.26
| | |
0.21
| | |
0.05
| | |
23.8
| |
| | | | | | | |
|
Dividends declared per common share | |
$
|
0.075
| | |
$
|
0.05
| | |
$
|
0.025
| | |
50.0
|
%
|
| | | | | | | |
|
Average common and common equivalent shares | | | | | | | | |
outstanding (in thousands): | | | | | | | | |
Basic
| |
166,887
| | |
164,845
| | |
2,042
| | |
1.2
|
%
|
Diluted
| |
167,435
| | |
165,366
| | |
2,069
| | |
1.3
| |
|
TCF FINANCIAL CORPORATION AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
(Dollars in thousands)
|
(Unaudited)
|
|
| |
| |
| |
| |
| | Three Months Ended March 31, | | Change |
| | 2016 | | 2015 | | $ | | % |
Net income attributable to TCF Financial Corporation | |
$
|
48,046
|
| |
$
|
39,801
|
| |
$
|
8,245
|
| |
20.7
|
%
|
Other comprehensive income (loss): | | | | | | | | |
Securities available for sale:
| | | | | | | | |
Unrealized gains (losses) arising during the period
| |
19,135
| | |
4,139
| | |
14,996
| | |
N.M.
|
Reclassification of net (gains) losses to net income
| |
274
| | |
304
| | |
(30
|
)
| |
(9.9
|
)
|
Net investment hedges:
| | | | | | | | |
Unrealized gains (losses) arising during the period
| |
(3,257
|
)
| |
3,588
| | |
(6,845
|
)
| |
N.M.
|
Foreign currency translation adjustment:
| | | | | | | | |
Unrealized gains (losses) arising during the period
| |
3,409
| | |
(3,886
|
)
| |
7,295
| | |
N.M.
|
Recognized postretirement prior service cost:
| | | | | | | | |
Reclassification of net (gains) losses to net income
| |
(12
|
)
| |
(12
|
)
| |
—
| | |
—
| |
Income tax (expense) benefit
| |
(6,130
|
)
| |
(3,029
|
)
| |
(3,101
|
)
| |
(102.4
|
)
|
Total other comprehensive income (loss)
| |
13,419
|
| |
1,104
|
| |
12,315
|
| |
N.M.
|
Comprehensive income | |
$
|
61,465
|
| |
$
|
40,905
|
| |
$
|
20,560
|
| |
50.3
| |
| | | | | | | |
|
N.M. Not Meaningful.
| | | | | | | | |
|
TCF FINANCIAL CORPORATION AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION |
(Dollars in thousands, except per-share data)
|
(Unaudited)
|
|
| |
| |
| |
| |
| | At Mar. 31, | | At Dec. 31, | | Change |
| | 2016 | | 2015 | | $ | | % |
ASSETS: | | | | | | | | |
Cash and due from banks
| |
$
|
870,153
| | |
$
|
889,337
| | |
$
|
(19,184
|
)
| |
(2.2
|
)%
|
Investments
| |
71,586
| | |
70,537
| | |
1,049
| | |
1.5
| |
Securities held to maturity
| |
198,178
| | |
201,920
| | |
(3,742
|
)
| |
(1.9
|
)
|
Securities available for sale
| |
1,135,890
| | |
888,885
| | |
247,005
| | |
27.8
| |
Loans and leases held for sale
| |
211,151
| | |
157,625
| | |
53,526
| | |
34.0
| |
Loans and leases:
| | | | | | | | |
Consumer real estate:
| | | | | | | | |
First mortgage lien
| |
2,521,492
| | |
2,624,956
| | |
(103,464
|
)
| |
(3.9
|
)
|
Junior lien
| |
2,729,075
|
| |
2,839,316
|
| |
(110,241
|
)
| |
(3.9
|
)
|
Total consumer real estate
| |
5,250,567
| | |
5,464,272
| | |
(213,705
|
)
| |
(3.9
|
)
|
Commercial
| |
3,114,594
| | |
3,145,832
| | |
(31,238
|
)
| |
(1.0
|
)
|
Leasing and equipment finance
| |
4,005,934
| | |
4,012,248
| | |
(6,314
|
)
| |
(0.2
|
)
|
Inventory finance
| |
2,676,675
| | |
2,146,754
| | |
529,921
| | |
24.7
| |
Auto finance
| |
2,786,731
| | |
2,647,596
| | |
139,135
| | |
5.3
| |
Other
| |
18,940
|
| |
19,297
|
| |
(357
|
)
| |
(1.9
|
)
|
Total loans and leases
| |
17,853,441
| | |
17,435,999
| | |
417,442
| | |
2.4
| |
Allowance for loan and lease losses
| |
(160,074
|
)
| |
(156,054
|
)
| |
(4,020
|
)
| |
(2.6
|
)
|
Net loans and leases
| |
17,693,367
| | |
17,279,945
| | |
413,422
| | |
2.4
| |
Premises and equipment, net
| |
439,507
| | |
445,934
| | |
(6,427
|
)
| |
(1.4
|
)
|
Goodwill
| |
225,640
| | |
225,640
| | |
—
| | |
—
| |
Other assets
| |
475,630
|
| |
529,786
|
| |
(54,156
|
)
| |
(10.2
|
)
|
Total assets
| |
$
|
21,321,102
|
| |
$
|
20,689,609
|
| |
$
|
631,493
|
| |
3.1
| |
| | | | | | | |
|
LIABILITIES AND EQUITY: | | | | | | | | |
Deposits:
| | | | | | | | |
Checking
| |
$
|
5,764,392
| | |
$
|
5,690,559
| | |
$
|
73,833
| | |
1.3
|
%
|
Savings
| |
4,741,850
| | |
4,717,457
| | |
24,393
| | |
0.5
| |
Money market
| |
2,539,124
| | |
2,408,180
| | |
130,944
| | |
5.4
| |
Certificates of deposit
| |
4,267,003
|
| |
3,903,793
|
| |
363,210
|
| |
9.3
| |
Total deposits
| |
17,312,369
|
| |
16,719,989
|
| |
592,380
|
| |
3.5
| |
Short-term borrowings
| |
2,426
| | |
5,381
| | |
(2,955
|
)
| |
(54.9
|
)
|
Long-term borrowings
| |
1,003,168
|
| |
1,034,557
|
| |
(31,389
|
)
| |
(3.0
|
)
|
Total borrowings
| |
1,005,594
| | |
1,039,938
| | |
(34,344
|
)
| |
(3.3
|
)
|
Accrued expenses and other liabilities
| |
634,298
|
| |
622,765
|
| |
11,533
|
| |
1.9
| |
Total liabilities
| |
18,952,261
|
| |
18,382,692
|
| |
569,569
|
| |
3.1
| |
Equity:
| | | | | | | | |
Preferred stock, par value $0.01 per share, 30,000,000 shares
authorized; 4,006,900 shares issued
| |
263,240
| | |
263,240
| | |
—
| | |
—
| |
Common stock, par value $0.01 per share, 280,000,000 shares
authorized; 170,647,255 and 169,887,030 shares issued, respectively
| |
1,707
| | |
1,699
| | |
8
| | |
0.5
| |
Additional paid-in capital
| |
860,307
| | |
851,836
| | |
8,471
| | |
1.0
| |
Retained earnings, subject to certain restrictions
| |
1,271,031
| | |
1,240,347
| | |
30,684
| | |
2.5
| |
Accumulated other comprehensive income (loss)
| |
(1,927
|
)
| |
(15,346
|
)
| |
13,419
| | |
87.4
| |
Treasury stock at cost, 42,566 shares, and other
| |
(51,445
|
)
| |
(50,860
|
)
| |
(585
|
)
| |
(1.2
|
)
|
Total TCF Financial Corporation stockholders' equity
| |
2,342,913
| | |
2,290,916
| | |
51,997
| | |
2.3
| |
Non-controlling interest in subsidiaries
| |
25,928
|
| |
16,001
|
| |
9,927
|
| |
62.0
| |
Total equity
| |
2,368,841
|
| |
2,306,917
|
| |
61,924
|
| |
2.7
| |
Total liabilities and equity
| |
$
|
21,321,102
|
| |
$
|
20,689,609
|
| |
$
|
631,493
|
| |
3.1
| |
|
TCF FINANCIAL CORPORATION AND SUBSIDIARIES |
SUMMARY OF CREDIT QUALITY DATA |
(Dollars in thousands)
|
(Unaudited)
|
|
Over 60-Day Delinquencies as a Percentage
of Portfolio(1) |
|
| |
| |
| |
| |
| |
| | |
| | |
| | At | | At | | At | | At | | At | | Change from | |
| | Mar. 31, | | Dec. 31, | | Sep. 30, | | Jun. 30, | | Mar. 31, | | Dec. 31, | | | Mar. 31, | |
| | 2016 | | 2015 | | 2015 | | 2015 | | 2015 | | 2015 | | | 2015 | |
Consumer real estate:
| | | | | | | | | | | | | | | | |
First mortgage lien
| |
0.38
|
%
| |
0.46
|
%
| |
0.36
|
%
| |
0.38
|
%
| |
0.53
|
%
| |
(8
|
)
|
bps
| |
(15
|
)
|
bps
|
Junior lien
| |
0.05
| | |
0.05
| | |
0.08
| | |
0.08
| | |
0.11
| | |
—
| | | |
(6
|
)
| |
Total consumer real estate
| |
0.20
| | |
0.23
| | |
0.21
| | |
0.22
| | |
0.32
| | |
(3
|
)
| | |
(12
|
)
| |
Commercial
| |
—
| | |
—
| | |
0.25
| | |
—
| | |
—
| | |
—
| | | |
—
| | |
Leasing and equipment finance
| |
0.12
| | |
0.06
| | |
0.19
| | |
0.06
| | |
0.09
| | |
6
| | | |
3
| | |
Inventory finance
| |
—
| | |
0.01
| | |
0.01
| | |
—
| | |
—
| | |
(1
|
)
| | |
—
| | |
Auto finance
| |
0.09
| | |
0.14
| | |
0.11
| | |
0.11
| | |
0.16
| | |
(5
|
)
| | |
(7
|
)
| |
Other
| |
0.16
| | |
0.13
| | |
0.17
| | |
0.11
| | |
0.02
| | |
3
| | | |
14
| | |
Subtotal
| |
0.10
| | |
0.11
| | |
0.17
| | |
0.10
| | |
0.14
| | |
(1
|
)
| | |
(4
|
)
| |
Acquired portfolios
| |
0.41
| | |
0.41
| | |
0.37
| | |
0.28
| | |
0.21
| | |
—
| | | |
20
| | |
Total delinquencies
| |
0.10
| | |
0.11
| | |
0.17
| | |
0.10
| | |
0.14
| | |
(1
|
)
| | |
(4
|
)
| |
| | | | | | | | | | | | | | | |
|
(1) Excludes non-accrual loans and leases.
| | | | | | | | | | | | | | | | |
|
Net Charge-Offs as a Percentage of
Average Loans and Leases |
|
| |
| | |
| | Quarter Ended(1) | | Change from | |
| | Mar. 31, |
| Dec. 31, |
| Sep. 30, |
| Jun. 30, |
| Mar. 31, | | Dec. 31, | |
| Mar. 31, | |
| | 2016 | | 2015 | | 2015 | | 2015 | | 2015 | | 2015 | | | 2015 | |
Consumer real estate:
| | | | | | | | | | | | | | | | |
First mortgage lien
| |
0.55
|
%
| |
0.54
|
%
| |
0.53
|
%
| |
0.79
|
%
| |
0.62
|
%
| |
1
| |
bps
| |
(7
|
)
|
bps
|
Junior lien
| |
0.17
| | |
0.17
| | |
0.11
| | |
0.59
| | |
0.38
| | |
—
| | | |
(21
|
)
| |
Total consumer real estate
| |
0.35
| | |
0.34
| | |
0.32
| | |
0.69
| | |
0.51
| | |
1
| | | |
(16
|
)
| |
Commercial
| |
(0.02
|
)
| |
0.05
| | |
—
| | |
0.21
| | |
(0.07
|
)
| |
(7
|
)
| | |
5
| | |
Leasing and equipment finance
| |
0.13
| | |
0.16
| | |
0.09
| | |
0.16
| | |
0.10
| | |
(3
|
)
| | |
3
| | |
Inventory finance
| |
0.04
| | |
0.05
| | |
0.03
| | |
0.11
| | |
0.08
| | |
(1
|
)
| | |
(4
|
)
| |
Auto finance
| |
0.81
| | |
0.75
| | |
0.62
| | |
0.66
| | |
0.66
| | |
6
| | | |
15
| | |
Other
| |
N.M.
| |
N.M.
| |
N.M.
| |
N.M.
| |
N.M.
| |
N.M.
| | |
N.M.
| |
Total
| |
0.27
| | |
0.29
| | |
0.23
| | |
0.41
| | |
0.28
| | |
(2
|
)
| | |
(1
|
)
| |
| | | | | | | | | | | | | | | |
|
N.M. Not Meaningful.
| | | | | | | | | | | | | | | | |
(1) Annualized.
| | | | | | | | | | | | | | | | |
|
Non-Accrual Loans and Leases Rollforward |
|
| |
| |
| |
| |
| |
| |
| |
| | Quarter Ended | | Change from |
| | Mar. 31, | | Dec. 31, | | Sep. 30, | | Jun. 30, | | Mar. 31, | | Dec. 31, | | Mar. 31, |
| | 2016 | | 2015 | | 2015 | | 2015 | | 2015 | | 2015 | | 2015 |
Balance, beginning of period
| |
$
|
200,466
| | |
$
|
206,110
| | |
$
|
205,710
| | |
$
|
222,143
| | |
$
|
216,734
| | |
$
|
(5,644
|
)
| |
$
|
(16,268
|
)
|
Additions
| |
38,029
| | |
44,387
| | |
48,505
| | |
40,846
| | |
51,647
| | |
(6,358
|
)
| |
(13,618
|
)
|
Charge-offs
| |
(7,436
|
)
| |
(9,002
|
)
| |
(7,055
|
)
| |
(14,050
|
)
| |
(8,921
|
)
| |
1,566
| | |
1,485
| |
Transfers to other assets
| |
(12,342
|
)
| |
(13,612
|
)
| |
(16,400
|
)
| |
(17,738
|
)
| |
(16,781
|
)
| |
1,270
| | |
4,439
| |
Return to accrual status
| |
(7,698
|
)
| |
(9,282
|
)
| |
(10,190
|
)
| |
(10,298
|
)
| |
(7,668
|
)
| |
1,584
| | |
(30
|
)
|
Payments received
| |
(15,551
|
)
| |
(20,103
|
)
| |
(14,721
|
)
| |
(15,543
|
)
| |
(10,974
|
)
| |
4,552
| | |
(4,577
|
)
|
Sales
| |
—
| | |
(775
|
)
| |
(705
|
)
| |
(353
|
)
| |
(2,250
|
)
| |
775
| | |
2,250
| |
Other, net
| |
3,181
|
| |
2,743
|
| |
966
|
| |
703
|
| |
356
|
| |
438
|
| |
2,825
|
|
Balance, end of period
| |
$
|
198,649
|
| |
$
|
200,466
|
| |
$
|
206,110
|
| |
$
|
205,710
|
| |
$
|
222,143
|
| |
$
|
(1,817
|
)
| |
$
|
(23,494
|
)
|
|
TCF FINANCIAL CORPORATION AND SUBSIDIARIES |
SUMMARY OF CREDIT QUALITY DATA, CONTINUED |
(Dollars in thousands)
|
(Unaudited)
|
|
Other Real Estate Owned Rollforward |
|
| |
| |
| |
| |
| |
| |
| |
| | Quarter Ended | | Change from |
| | Mar. 31, | | Dec. 31, | | Sep. 30, | | Jun. 30, | | Mar. 31, | | Dec. 31, | | Mar. 31, |
| | 2016 | | 2015 | | 2015 | | 2015 | | 2015 | | 2015 | | 2015 |
Balance, beginning of period
| |
$
|
49,982
| | |
$
|
58,584
| | |
$
|
58,007
| | |
$
|
62,398
| | |
$
|
65,650
| | |
$
|
(8,602
|
)
| |
$
|
(15,668
|
)
|
Transferred in
| |
10,575
| | |
12,626
| | |
15,087
| | |
15,359
| | |
15,513
| | |
(2,051
|
)
| |
(4,938
|
)
|
Sales
| |
(18,885
|
)
| |
(19,174
|
)
| |
(13,442
|
)
| |
(17,164
|
)
| |
(15,399
|
)
| |
289
| | |
(3,486
|
)
|
Writedowns
| |
(2,744
|
)
| |
(2,130
|
)
| |
(2,868
|
)
| |
(4,003
|
)
| |
(3,424
|
)
| |
(614
|
)
| |
680
| |
Other, net
| |
3,513
|
| |
76
|
| |
1,800
|
| |
1,417
|
| |
58
|
| |
3,437
|
| |
3,455
|
|
Balance, end of period
| |
$
|
42,441
|
| |
$
|
49,982
|
| |
$
|
58,584
|
| |
$
|
58,007
|
| |
$
|
62,398
|
| |
$
|
(7,541
|
)
| |
$
|
(19,957
|
)
|
|
Allowance for Loan and Lease Losses |
|
| |
|
| |
| |
|
| |
| |
|
| | |
| |
|
| | |
| |
| |
| | At | | At | | At | | | At | | | At |
| | Mar. 31, | | Dec. 31, | | Sep. 30, | | | Jun. 30, | | | Mar. 31, |
| | 2016 | | 2015 | | 2015 | | | 2015 | | | 2015 |
| | | | | % of | | | | | % of | | | | | % of | | | | | | % of | | | | | % of |
| | Balance | | Portfolio | | Balance | | Portfolio | | Balance | | Portfolio | | Balance | | Portfolio | | Balance | | Portfolio |
Consumer real estate
| |
$
|
66,728
| | | |
1.27
|
%
| |
$
|
67,992
| | | |
1.24
|
%
| |
$
|
70,329
| | | |
1.25
|
%
| | |
$
|
74,687
| | | |
1.35
|
%
| | |
$
|
80,292
| | |
1.43
|
%
|
Commercial
| |
31,547
| | | |
1.01
| | |
30,185
| | | |
0.96
| | |
30,006
| | | |
0.96
| | | |
30,205
| | | |
0.97
| | | |
32,121
| | |
1.00
| |
Leasing and equipment finance
| |
19,454
| | | |
0.49
| | |
19,018
| | | |
0.47
| | |
18,177
| | | |
0.47
| | | |
17,669
| | | |
0.47
| | | |
17,921
| | |
0.48
| |
Inventory finance
| |
13,306
| | | |
0.50
| | |
11,128
| | | |
0.52
| | |
11,121
| | | |
0.52
| | | |
10,879
| | | |
0.52
| | | |
12,409
| | |
0.53
| |
Auto finance
| |
28,535
| | | |
1.02
| | |
26,486
| | | |
1.00
| | |
23,722
| | | |
0.98
| | | |
22,061
| | | |
0.96
| | | |
20,426
| | |
0.95
| |
Other
| |
504
|
| | |
2.66
| | |
1,245
|
| | |
6.45
| | |
607
|
| | |
2.94
| | | |
614
|
| | |
2.81
| | | |
630
|
| |
3.08
| |
Total
| |
$
|
160,074
|
| | |
0.90
| | |
$
|
156,054
|
| | |
0.90
| | |
$
|
153,962
|
| | |
0.90
| | | |
$
|
156,115
|
| | |
0.93
| | | |
$
|
163,799
|
| |
0.96
| |
|
Changes in Allowance for Loan and Lease
Losses |
|
| |
| |
| |
| |
| |
| |
| |
| | Quarter Ended | | Change from |
| | Mar. 31, | | Dec. 31, | | Sep. 30, | | Jun. 30, | | Mar. 31, | | Dec. 31, | | Mar. 31, |
| | 2016 | | 2015 | | 2015 | | 2015 | | 2015 | | 2015 | | 2015 |
Balance, beginning of period
| |
$
|
156,054
| | |
$
|
153,962
| | |
$
|
156,115
| | |
$
|
163,799
| | |
$
|
164,169
| | |
$
|
2,092
| | |
$
|
(8,115
|
)
|
Charge-offs
| |
(16,667
|
)
| |
(18,101
|
)
| |
(15,338
|
)
| |
(22,984
|
)
| |
(18,124
|
)
| |
1,434
| | |
1,457
| |
Recoveries
| |
4,761
|
| |
5,523
|
| |
5,397
|
| |
5,506
|
| |
6,587
|
| |
(762
|
)
| |
(1,826
|
)
|
Net (charge-offs) recoveries
| |
(11,906
|
)
| |
(12,578
|
)
| |
(9,941
|
)
| |
(17,478
|
)
| |
(11,537
|
)
| |
672
| | |
(369
|
)
|
Provision for credit losses
| |
18,842
| | |
17,607
| | |
10,018
| | |
12,528
| | |
12,791
| | |
1,235
| | |
6,051
| |
Other
| |
(2,916
|
)
| |
(2,937
|
)
| |
(2,230
|
)
| |
(2,734
|
)
| |
(1,624
|
)
| |
21
|
| |
(1,292
|
)
|
Balance, end of period
| |
$
|
160,074
|
| |
$
|
156,054
|
| |
$
|
153,962
|
| |
$
|
156,115
|
| |
$
|
163,799
|
| |
$
|
4,020
|
| |
$
|
(3,725
|
)
|
|
TCF FINANCIAL CORPORATION AND SUBSIDIARIES |
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES |
(Dollars in thousands)
|
(Unaudited)
|
|
| |
| |
| |
| |
| |
| |
| | Three Months Ended March 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
| |
$
|
349,079
| | |
$
|
2,216
| | |
2.55
|
%
| |
$
|
665,606
| | |
$
|
3,497
| | |
2.13
|
%
|
Securities held to maturity
| |
199,303
| | |
1,319
| | |
2.65
| | |
211,646
| | |
1,405
| | |
2.66
| |
Securities available for sale(3) | | | | | | | | | | | | |
Taxable
| |
640,796
| | |
3,818
| | |
2.38
| | |
474,697
| | |
3,080
| | |
2.60
| |
Tax-exempt(4) | |
319,427
| | |
2,584
| | |
3.24
| | |
—
| | |
—
| | |
—
| |
Loans and leases held for sale
| |
367,686
| | |
8,504
| | |
9.30
| | |
276,149
| | |
5,836
| | |
8.57
| |
Loans and leases:(5) | | | | | | | | | | | | |
Consumer real estate:
| | | | | | | | | | | | |
Fixed-rate
| |
2,430,773
| | |
35,202
| | |
5.82
| | |
2,912,535
| | |
43,360
| | |
6.03
| |
Variable-rate
| |
3,028,001
|
| |
40,056
|
| |
5.32
| | |
2,778,805
|
| |
35,216
|
| |
5.14
| |
Total consumer real estate
| |
5,458,774
| | |
75,258
| | |
5.54
| | |
5,691,340
| | |
78,576
| | |
5.60
| |
Commercial:
| | | | | | | | | | | | |
Fixed-rate
| |
1,012,870
| | |
12,429
| | |
4.94
| | |
1,273,806
| | |
15,730
| | |
5.01
| |
Variable- and adjustable-rate
| |
2,145,231
|
| |
21,337
|
| |
4.00
| | |
1,880,202
|
| |
18,249
|
| |
3.94
| |
Total commercial
| |
3,158,101
| | |
33,766
| | |
4.30
| | |
3,154,008
| | |
33,979
| | |
4.37
| |
Leasing and equipment finance
| |
3,992,678
| | |
44,654
| | |
4.47
| | |
3,729,481
| | |
43,485
| | |
4.66
| |
Inventory finance
| |
2,433,534
| | |
34,370
| | |
5.68
| | |
2,108,871
| | |
29,692
| | |
5.71
| |
Auto finance
| |
2,703,880
| | |
27,837
| | |
4.14
| | |
2,021,144
| | |
20,851
| | |
4.18
| |
Other
| |
10,018
|
| |
142
|
| |
5.63
| | |
11,616
|
| |
213
|
| |
7.44
| |
Total loans and leases
| |
17,756,985
|
| |
216,027
|
| |
4.89
| | |
16,716,460
|
| |
206,796
|
| |
5.00
| |
Total interest-earning assets
| |
19,633,276
| | |
234,468
| | |
4.80
| | |
18,344,558
| | |
220,614
| | |
4.86
| |
Other assets(6) | |
1,297,479
|
| | | | | |
1,233,887
|
| | | | |
Total assets
| |
$
|
20,930,755
|
| | | | | |
$
|
19,578,445
|
| | | | |
LIABILITIES AND EQUITY: | | | | | | | | | | | | |
Non-interest bearing deposits:
| | | | | | | | | | | | |
Retail
| |
$
|
1,751,710
| | | | | | |
$
|
1,646,769
| | | | | |
Small business
| |
853,645
| | | | | | |
804,323
| | | | | |
Commercial and custodial
| |
560,983
|
| | | | | |
489,248
|
| | | | |
Total non-interest bearing deposits
| |
3,166,338
| | | | | | |
2,940,340
| | | | | |
Interest-bearing deposits:
| | | | | | | | | | | | |
Checking
| |
2,440,563
| | |
81
| | |
0.01
| | |
2,378,761
| | |
151
| | |
0.03
| |
Savings
| |
4,700,164
| | |
346
| | |
0.03
| | |
5,143,295
| | |
1,101
| | |
0.09
| |
Money market
| |
2,472,751
| | |
3,807
| | |
0.62
| | |
2,149,340
| | |
3,567
| | |
0.67
| |
Certificates of deposit
| |
4,104,951
|
| |
10,757
|
| |
1.05
| | |
3,041,790
|
| |
6,253
|
| |
0.83
| |
Total interest-bearing deposits
| |
13,718,429
|
| |
14,991
|
| |
0.44
| | |
12,713,186
|
| |
11,072
|
| |
0.35
| |
Total deposits
| |
16,884,767
|
| |
14,991
|
| |
0.36
| | |
15,653,526
|
| |
11,072
|
| |
0.29
| |
Borrowings:
| | | | | | | | | | | | |
Short-term borrowings
| |
5,562
| | |
7
| | |
0.53
| | |
7,999
| | |
18
| | |
0.89
| |
Long-term borrowings
| |
1,062,513
|
| |
5,686
|
| |
2.14
| | |
1,177,521
|
| |
5,284
|
| |
1.80
| |
Total borrowings
| |
1,068,075
|
| |
5,693
|
| |
2.13
| | |
1,185,520
|
| |
5,302
|
| |
1.79
| |
Total interest-bearing liabilities
| |
14,786,504
|
| |
20,684
|
| |
0.56
| | |
13,898,706
|
| |
16,374
|
| |
0.48
| |
Total deposits and borrowings
| |
17,952,842
| | |
20,684
| | |
0.46
| | |
16,839,046
| | |
16,374
| | |
0.39
| |
Other liabilities
| |
650,908
|
| | | | | |
588,541
|
| | | | |
Total liabilities
| |
18,603,750
|
| | | | | |
17,427,587
|
| | | | |
Total TCF Financial Corp. stockholders' equity
| |
2,307,781
| | | | | | |
2,133,781
| | | | | |
Non-controlling interest in subsidiaries
| |
19,224
|
| | | | | |
17,077
|
| | | | |
Total equity
| |
2,327,005
|
| | | | | |
2,150,858
|
| | | | |
Total liabilities and equity
| |
$
|
20,930,755
|
| | | | | |
$
|
19,578,445
|
| | | | |
Net interest income and margin | | | |
$
|
213,784
|
| |
4.37
| | | | |
$
|
204,240
|
| |
4.50
| |
| | | | | | | | | | | | | | | | | |
|
(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 $133.6 million and $88.8 million for the
first quarter of 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 |
| | Mar. 31, | | Dec. 31, | | Sep. 30, | | Jun. 30, | | Mar. 31, |
| | 2016 | | 2015 | | 2015 | | 2015 | | 2015 |
Interest income: | | | | | | | | | | |
Loans and leases
| |
$
|
214,805
| | |
$
|
212,346
| | |
$
|
207,250
| | |
$
|
207,164
| | |
$
|
205,976
| |
Securities available for sale
| |
5,498
| | |
4,864
| | |
4,161
| | |
3,543
| | |
3,080
| |
Securities held to maturity
| |
1,319
| | |
1,336
| | |
1,361
| | |
1,384
| | |
1,405
| |
Investments and other
| |
10,720
|
| |
6,905
|
| |
10,832
|
| |
10,990
|
| |
9,333
|
|
Total interest income
| |
232,342
|
| |
225,451
|
| |
223,604
|
| |
223,081
|
| |
219,794
|
|
Interest expense: | | | | | | | | | | |
Deposits
| |
14,991
| | |
13,772
| | |
12,302
| | |
11,080
| | |
11,072
| |
Borrowings
| |
5,693
|
| |
6,010
|
| |
6,032
|
| |
5,972
|
| |
5,302
|
|
Total interest expense
| |
20,684
|
| |
19,782
|
| |
18,334
|
| |
17,052
|
| |
16,374
|
|
Net interest income
| |
211,658
| | |
205,669
| | |
205,270
| | |
206,029
| | |
203,420
| |
Provision for credit losses
| |
18,842
|
| |
17,607
|
| |
10,018
|
| |
12,528
|
| |
12,791
|
|
Net interest income after provision for credit losses
| |
192,816
|
| |
188,062
|
| |
195,252
|
| |
193,501
|
| |
190,629
|
|
Non-interest income: | | | | | | | | | | |
Fees and service charges
| |
32,817
| | |
37,741
| | |
36,991
| | |
36,295
| | |
33,972
| |
Card revenue
| |
13,363
| | |
13,781
| | |
13,803
| | |
13,902
| | |
12,901
| |
ATM revenue
| |
5,021
|
| |
5,143
|
| |
5,739
|
| |
5,540
|
| |
5,122
|
|
Subtotal
| |
51,201
| | |
56,665
| | |
56,533
| | |
55,737
| | |
51,995
| |
Gains on sales of auto loans, net
| |
11,920
| | |
3,136
| | |
10,423
| | |
10,756
| | |
6,265
| |
Gains on sales of consumer real estate loans, net
| |
9,384
| | |
13,104
| | |
7,143
| | |
11,954
| | |
8,763
| |
Servicing fee income
| |
8,883
|
|
|
8,622
|
|
|
8,049
|
|
|
7,216
|
|
|
7,342
|
|
Subtotal
| |
30,187
| | |
24,862
| | |
25,615
| | |
29,926
| | |
22,370
| |
Leasing and equipment finance
| |
28,487
| | |
32,355
| | |
27,165
| | |
26,385
| | |
22,224
| |
Other
| |
2,843
|
| |
1,806
|
| |
3,070
|
| |
1,460
|
| |
4,127
|
|
Fees and other revenue
| |
112,718
| | |
115,688
| | |
112,383
| | |
113,508
| | |
100,716
| |
Gains (losses) on securities, net
| |
(116
|
)
| |
(29
|
)
| |
(131
|
)
| |
(59
|
)
| |
(78
|
)
|
Total non-interest income
| |
112,602
|
| |
115,659
|
| |
112,252
|
| |
113,449
|
| |
100,638
|
|
Non-interest expense: | | | | | | | | | | |
Compensation and employee benefits
| |
124,473
| | |
109,061
| | |
116,708
| | |
116,159
| | |
115,815
| |
Occupancy and equipment
| |
37,008
| | |
37,824
| | |
34,159
| | |
36,152
| | |
36,827
| |
FDIC insurance
| |
4,113
| | |
5,173
| | |
4,832
| | |
4,864
| | |
5,393
| |
Advertising and marketing
| |
5,887
| | |
5,316
| | |
5,793
| | |
5,150
| | |
6,523
| |
Other
| |
43,348
|
| |
46,441
|
| |
45,750
|
| |
45,887
|
| |
48,133
|
|
Subtotal
| |
214,829
| | |
203,815
| | |
207,242
| | |
208,212
| | |
212,691
| |
Operating lease depreciation
| |
9,573
| | |
13,608
| | |
9,485
| | |
8,582
| | |
7,734
| |
Foreclosed real estate and repossessed assets, net
| |
3,920
| | |
4,940
| | |
5,680
| | |
6,377
| | |
6,196
| |
Other credit costs, net
| |
12
|
| |
224
|
| |
(123
|
)
| |
(62
|
)
| |
146
|
|
Total non-interest expense
| |
228,334
|
| |
222,587
|
| |
222,284
|
| |
223,109
|
| |
226,767
|
|
Income before income tax expense
| |
77,084
| | |
81,134
| | |
85,220
| | |
83,841
| | |
64,500
| |
Income tax expense
| |
26,803
|
| |
26,614
|
| |
30,528
|
| |
28,902
|
| |
22,828
|
|
Income after income tax expense
| |
50,281
| | |
54,520
| | |
54,692
| | |
54,939
| | |
41,672
| |
Income attributable to non-controlling interest
| |
2,235
|
| |
2,028
|
| |
2,117
|
| |
2,684
|
| |
1,871
|
|
Net income attributable to TCF Financial Corporation | |
48,046
|
| |
52,492
|
| |
52,575
|
| |
52,255
|
| |
39,801
|
|
Preferred stock dividends
| |
4,847
|
| |
4,847
|
| |
4,847
|
| |
4,847
|
| |
4,847
|
|
Net income available to common stockholders | |
$
|
43,199
|
| |
$
|
47,645
|
| |
$
|
47,728
|
| |
$
|
47,408
|
| |
$
|
34,954
|
|
| | | | | | | | | |
|
Net income per common share: | | | | | | | | | | |
Basic
| |
$
|
0.26
| | |
$
|
0.29
| | |
$
|
0.29
| | |
$
|
0.29
| | |
$
|
0.21
| |
Diluted
| |
0.26
| | |
0.29
| | |
0.29
| | |
0.29
| | |
0.21
| |
| | | | | | | | | |
|
Dividends declared per common share | |
$
|
0.075
| | |
$
|
0.075
| | |
$
|
0.05
| | |
$
|
0.05
| | |
$
|
0.05
| |
| | | | | | | | | |
|
Financial highlights: | | | | | | | | | | |
Pre-tax pre-provision profit(1) | |
$
|
95,926
| | |
$
|
98,741
| | |
$
|
95,238
| | |
$
|
96,369
| | |
$
|
77,291
| |
Return on average assets(2) | |
0.96
|
%
| |
1.08
|
%
| |
1.10
|
%
| |
1.11
|
%
| |
0.85
|
%
|
Return on average common equity(2) | |
8.45
| | |
9.53
| | |
9.76
| | |
9.93
| | |
7.47
| |
Net interest margin(2) | |
4.37
| | |
4.35
| | |
4.40
| | |
4.44
| | |
4.50
| |
| | | | | | | | | |
|
(1) Pre-tax pre-provision profit is calculated as total revenues
less non-interest expense.
|
(2) Annualized.
|
|
TCF FINANCIAL CORPORATION AND SUBSIDIARIES |
CONSOLIDATED QUARTERLY AVERAGE BALANCE SHEETS |
(In thousands)
|
(Unaudited)
|
|
| |
| |
| |
| |
| |
| | Mar. 31, 2016 | | Dec. 31, 2015 | | Sep. 30, 2015 | | Jun. 30, 2015 | | Mar. 31, 2015 |
ASSETS: | | | | | | | | | | |
Investments and other
| |
$
|
349,079
| | |
$
|
405,252
| | |
$
|
463,312
| | |
$
|
551,630
| | |
$
|
665,606
|
Securities held to maturity
| |
199,303
| | |
201,944
| | |
205,264
| | |
209,834
| | |
211,646
|
Securities available for sale:(1) | | | | | | | | | | |
Taxable
| |
640,796
| | |
611,816
| | |
601,889
| | |
566,499
| | |
474,697
|
Tax-exempt
| |
319,427
| | |
221,113
| | |
92,484
| | |
7,420
| | |
—
|
Loans and leases held for sale
| |
367,686
| | |
180,278
| | |
348,215
| | |
340,912
| | |
276,149
|
Loans and leases:(2) | | | | | | | | | | |
Consumer real estate:
| | | | | | | | | | |
Fixed-rate
| |
2,430,773
| | |
2,520,567
| | |
2,637,875
| | |
2,776,177
| | |
2,912,535
|
Variable-rate
| |
3,028,001
|
| |
3,083,957
|
| |
2,968,507
|
| |
2,811,510
|
| |
2,778,805
|
Total consumer real estate
| |
5,458,774
| | |
5,604,524
| | |
5,606,382
| | |
5,587,687
| | |
5,691,340
|
Commercial:
| | | | | | | | | | |
Fixed-rate
| |
1,012,870
| | |
1,090,001
| | |
1,137,744
| | |
1,193,011
| | |
1,273,806
|
Variable- and adjustable-rate
| |
2,145,231
|
| |
2,027,982
|
| |
1,980,280
|
| |
1,955,261
|
| |
1,880,202
|
Total commercial
| |
3,158,101
| | |
3,117,983
| | |
3,118,024
| | |
3,148,272
| | |
3,154,008
|
Leasing and equipment finance
| |
3,992,678
| | |
3,911,025
| | |
3,821,590
| | |
3,751,776
| | |
3,729,481
|
Inventory finance
| |
2,433,534
| | |
2,180,534
| | |
2,036,054
| | |
2,292,481
| | |
2,108,871
|
Auto finance
| |
2,703,880
| | |
2,514,923
| | |
2,361,057
| | |
2,211,014
| | |
2,021,144
|
Other
| |
10,018
|
| |
9,060
|
| |
9,833
|
| |
10,734
|
| |
11,616
|
Total loans and leases
| |
17,756,985
|
| |
17,338,049
|
| |
16,952,940
|
| |
17,001,964
|
| |
16,716,460
|
Total interest-earning assets
| |
19,633,276
| | |
18,958,452
| | |
18,664,104
| | |
18,678,259
| | |
18,344,558
|
Other assets(3) | |
1,297,479
|
| |
1,245,751
|
| |
1,217,396
|
| |
1,209,514
|
| |
1,233,887
|
Total assets
| |
$
|
20,930,755
|
| |
$
|
20,204,203
|
| |
$
|
19,881,500
|
| |
$
|
19,887,773
|
| |
$
|
19,578,445
|
| | | | | | | | | |
|
LIABILITIES AND EQUITY: | | | | | | | | | | |
Non-interest-bearing deposits:
| | | | | | | | | | |
Retail
| |
$
|
1,751,710
| | |
$
|
1,639,550
| | |
$
|
1,649,995
| | |
$
|
1,699,668
| | |
$
|
1,646,769
|
Small business
| |
853,645
| | |
874,892
| | |
852,211
| | |
822,683
| | |
804,323
|
Commercial and custodial
| |
560,983
|
| |
525,692
|
| |
516,461
|
| |
497,883
|
| |
489,248
|
Total non-interest bearing deposits
| |
3,166,338
| | |
3,040,134
| | |
3,018,667
| | |
3,020,234
| | |
2,940,340
|
Interest-bearing deposits:
| | | | | | | | | | |
Checking
| |
2,440,563
| | |
2,384,452
| | |
2,399,119
| | |
2,422,909
| | |
2,378,761
|
Savings
| |
4,700,164
| | |
4,721,571
| | |
4,860,509
| | |
5,033,329
| | |
5,143,295
|
Money market
| |
2,472,751
| | |
2,349,127
| | |
2,297,893
| | |
2,261,567
| | |
2,149,340
|
Certificates of deposit
| |
4,104,951
|
| |
3,793,653
|
| |
3,400,282
|
| |
3,116,718
|
| |
3,041,790
|
Total interest-bearing deposits
| |
13,718,429
|
| |
13,248,803
|
| |
12,957,803
|
| |
12,834,523
|
| |
12,713,186
|
Total deposits
| |
16,884,767
|
| |
16,288,937
|
| |
15,976,470
|
| |
15,854,757
|
| |
15,653,526
|
Borrowings:
| | | | | | | | | | |
Short-term borrowings
| |
5,562
| | |
28,364
| | |
30,326
| | |
8,246
| | |
7,999
|
Long-term borrowings
| |
1,062,513
|
| |
1,009,591
|
| |
1,057,903
|
| |
1,234,205
|
| |
1,177,521
|
Total borrowings
| |
1,068,075
|
| |
1,037,955
|
| |
1,088,229
|
| |
1,242,451
|
| |
1,185,520
|
Total interest-bearing liabilities
| |
14,786,504
|
| |
14,286,758
|
| |
14,046,032
|
| |
14,076,974
|
| |
13,898,706
|
Total deposits and borrowings
| |
17,952,842
| | |
17,326,892
| | |
17,064,699
| | |
17,097,208
| | |
16,839,046
|
Other liabilities
| |
650,908
|
| |
595,317
|
| |
578,718
|
| |
594,352
|
| |
588,541
|
Total liabilities
| |
18,603,750
|
| |
17,922,209
|
| |
17,643,417
|
| |
17,691,560
|
| |
17,427,587
|
Total TCF Financial Corporation stockholders' equity
| |
2,307,781
| | |
2,263,018
| | |
2,218,614
| | |
2,173,699
| | |
2,133,781
|
Non-controlling interest in subsidiaries
| |
19,224
|
| |
18,976
|
| |
19,469
|
| |
22,514
|
| |
17,077
|
Total equity
| |
2,327,005
|
| |
2,281,994
|
| |
2,238,083
|
| |
2,196,213
|
| |
2,150,858
|
Total liabilities and equity
| |
$
|
20,930,755
|
| |
$
|
20,204,203
|
| |
$
|
19,881,500
|
| |
$
|
19,887,773
|
| |
$
|
19,578,445
|
| | | | | | | | | | | | | | | | | | |
|
(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 $133.6 million, $123.8 million, $107.5
million, $96.0 million and $88.8 million for the first quarter of
2016 and for the fourth quarter, third quarter, second quarter and
first quarter of 2015, respectively.
|
|
TCF FINANCIAL CORPORATION AND SUBSIDIARIES |
CONSOLIDATED QUARTERLY YIELDS AND RATES(1)(2) |
(Unaudited)
|
|
| |
| |
| |
| |
| |
| | Mar. 31, 2016 | | Dec. 31, 2015 | | Sep. 30, 2015 |
| Jun. 30, 2015 | | Mar. 31, 2015 |
ASSETS: | | | | | | | | | | |
Investments and other
| |
2.55
|
%
| |
2.59
|
%
| |
2.52
|
%
| |
2.34
|
%
| |
2.13
|
%
|
Securities held to maturity
| |
2.65
| | |
2.64
| | |
2.65
| | |
2.64
| | |
2.66
| |
Securities available for sale:(3) | | | | | | | | | | |
Taxable
| |
2.38
| | |
2.41
| | |
2.43
| | |
2.47
| | |
2.60
| |
Tax-exempt(4) | |
3.24
| | |
3.26
| | |
3.35
| | |
3.50
| | |
—
| |
Loans and leases held for sale
| |
9.30
| | |
9.38
| | |
9.00
| | |
9.15
| | |
8.57
| |
Loans and leases:
| | | | | | | | | | |
Consumer real estate:
| | | | | | | | | | |
Fixed-rate
| |
5.82
| | |
5.73
| | |
5.72
| | |
5.73
| | |
6.03
| |
Variable-rate
| |
5.32
| | |
5.18
| | |
5.12
| | |
5.13
| | |
5.14
| |
Total consumer real estate
| |
5.54
| | |
5.43
| | |
5.40
| | |
5.43
| | |
5.60
| |
Commercial:
| | | | | | | | | | |
Fixed-rate
| |
4.94
| | |
5.05
| | |
5.05
| | |
5.03
| | |
5.01
| |
Variable- and adjustable-rate
| |
4.00
| | |
4.05
| | |
3.80
| | |
3.85
| | |
3.94
| |
Total commercial
| |
4.30
| | |
4.40
| | |
4.26
| | |
4.30
| | |
4.37
| |
Leasing and equipment finance
| |
4.47
| | |
4.55
| | |
4.59
| | |
4.66
| | |
4.66
| |
Inventory finance
| |
5.68
| | |
5.66
| | |
5.83
| | |
5.61
| | |
5.71
| |
Auto finance
| |
4.14
| | |
4.17
| | |
4.13
| | |
4.11
| | |
4.18
| |
Other
| |
5.63
| | |
6.88
| | |
6.31
| | |
6.92
| | |
7.44
| |
Total loans and leases
| |
4.89
| | |
4.89
| | |
4.88
| | |
4.90
| | |
5.00
| |
| | | | | | | | | |
|
Total interest-earning assets
| |
4.80
| | |
4.76
| | |
4.79
| | |
4.81
| | |
4.86
| |
| | | | | | | | | |
|
LIABILITIES: | | | | | | | | | | |
Interest-bearing deposits:
| | | | | | | | | | |
Checking
| |
0.01
| | |
0.02
| | |
0.02
| | |
0.02
| | |
0.03
| |
Savings
| |
0.03
| | |
0.04
| | |
0.05
| | |
0.06
| | |
0.09
| |
Money market
| |
0.62
| | |
0.62
| | |
0.62
| | |
0.61
| | |
0.67
| |
Certificates of deposit
| |
1.05
| | |
1.00
| | |
0.93
| | |
0.86
| | |
0.83
| |
Total interest-bearing deposits
| |
0.44
| | |
0.41
| | |
0.38
| | |
0.35
| | |
0.35
| |
Total deposits
| |
0.36
| | |
0.34
| | |
0.31
| | |
0.28
| | |
0.29
| |
Borrowings:
| | | | | | | | | | |
Short-term borrowings
| |
0.53
| | |
0.09
| | |
0.22
| | |
0.63
| | |
0.89
| |
Long-term borrowings
| |
2.14
| | |
2.37
| | |
2.27
| | |
1.93
| | |
1.80
| |
Total borrowings
| |
2.13
| | |
2.31
| | |
2.21
| | |
1.92
| | |
1.79
| |
| | | | | | | | | |
|
Total interest-bearing liabilities
| |
0.56
| | |
0.55
| | |
0.52
| | |
0.49
| | |
0.48
| |
| | | | | | | | | |
|
Net interest margin | |
4.37
| | |
4.35
| | |
4.40
| | |
4.44
| | |
4.50
| |
| | | | | | | | | | | | | | |
|
(1) Annualized.
|
(2) Yields are presented on a fully tax-equivalent basis.
|
(3) Average yields of securities available for sale are based upon
historical amortized cost and exclude equity securities.
|
(4) The yield on tax-exempt securities available for sale is
computed on a tax-equivalent basis using a statutory federal
income tax rate of 35% for all periods presented.
|
|
TCF FINANCIAL CORPORATION AND SUBSIDIARIES |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES(1) |
(Dollars in thousands)
|
(Unaudited)
|
|
| |
| |
| | At Mar. 31, | | At Dec. 31, |
| | 2016 | | 2015 |
Computation of tangible common equity to
tangible assets: | | | | |
Total equity
| |
$
|
2,368,841
| | |
$
|
2,306,917
| |
Less: Non-controlling interest in subsidiaries
| |
25,928
|
| |
16,001
|
|
Total TCF Financial Corporation stockholders' equity
| |
2,342,913
| | |
2,290,916
| |
Less:
| | | | |
Preferred stock
| |
263,240
| | |
263,240
| |
Goodwill
| |
225,640
| | |
225,640
| |
Other intangibles
| |
2,760
|
| |
3,126
|
|
Tangible common equity
| |
$
|
1,851,273
|
| |
$
|
1,798,910
|
|
| | | |
|
Total assets
| |
$
|
21,321,102
| | |
$
|
20,689,609
| |
Less:
| | | | |
Goodwill
| |
225,640
| | |
225,640
| |
Other intangibles
| |
2,760
|
| |
3,126
|
|
Tangible assets
| |
$
|
21,092,702
|
| |
$
|
20,460,843
|
|
| | | |
|
Tangible common equity to tangible assets
| |
8.78
|
%
| |
8.79
|
%
|
| | | |
|
| | At Mar. 31, | | At Dec. 31, |
| | 2016 | | 2015 |
Computation of tangible book value per
common share: | | | | |
Tangible common equity
| |
$
|
1,851,273
| | |
$
|
1,798,910
| |
Common stock shares outstanding
| |
170,604,689
| | |
169,844,464
| |
| | | |
|
Tangible book value per common share
| |
$
|
10.85
| | |
$
|
10.59
| |
|
| Three Months Ended |
| | Mar. 31, |
| Dec. 31, |
| Mar. 31, |
| | 2016 | | 2015 | | 2015 |
Computation of return on average tangible
common equity: | | | | | | |
Net income available to common stockholders
| |
$
|
43,199
| | |
$
|
47,645
| | |
$
|
34,954
| |
Other intangibles amortization, net of tax
| |
235
|
| |
251
|
| |
245
|
|
Adjusted net income available to common stockholders
| |
$
|
43,434
|
| |
$
|
47,896
|
| |
$
|
35,199
|
|
| | | | | |
|
Average balances:
| | | | | | |
Total equity
| |
$
|
2,327,005
| | |
$
|
2,281,994
| | |
$
|
2,150,858
| |
Less: Non-controlling interest in subsidiaries
| |
19,224
|
| |
18,976
|
| |
17,077
|
|
Total TCF Financial Corporation stockholders' equity
| |
2,307,781
| | |
2,263,018
| | |
2,133,781
| |
Less:
| | | | | | |
Preferred stock
| |
263,240
| | |
263,240
| | |
263,240
| |
Goodwill
| |
225,640
| | |
225,640
| | |
225,640
| |
Other intangibles
| |
2,966
|
| |
3,342
|
| |
4,474
|
|
Average tangible common equity
| |
$
|
1,815,935
|
| |
$
|
1,770,796
|
| |
$
|
1,640,427
|
|
| | | | | |
|
Return on average tangible common equity(2) | |
9.57
|
%
| |
10.82
|
%
| |
8.58
|
%
|
(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.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160421005812/en/
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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