Exhibit 99.1
NEWS RELEASE
TCF Financial Corporation • 333 West Fort Street, Suite 1800 • Detroit, MI 48226
FOR IMMEDIATE RELEASE
Contact: | ||||
Tom Wennerberg | (248) 498-2872 | news@tcfbank.com | (Media) | |
Timothy Sedabres | (952) 745-2766 | investor@tcfbank.com | (Investors) | |
TCF REPORTS FOURTH QUARTER 2019 RESULTS
TCF also announces quarterly cash dividends on common and preferred stock
Fourth Quarter Highlights
• | Quarterly net income of $112.4 million, or $0.72 per diluted share |
• | Adjusted diluted earnings per common share of $1.04(1), excluding $49.2 million, or $0.32 per share, after-tax impact of merger-related expenses and notable items |
• | Efficiency ratio of 73.49%; adjusted efficiency ratio of 58.51%(1) |
• | Return on average common equity ("ROACE") of 8.00%; return on average tangible common equity ("ROATCE") of 11.35%(1); adjusted ROATCE of 16.25%(1) |
• | Commercial loan and lease balances up $1.0 billion, or 4.5%, compared to September 30, 2019 |
• | Completed sale of $1.1 billion Legacy TCF auto finance portfolio |
• | Net charge-off rate as a percentage of average loans and leases of 0.07%, annualized |
• | Nonaccrual loans and leases of $169.7 million, or 0.49% of total loans and leases |
• | Common equity Tier 1 capital ratio of 10.99% |
• | Repurchased 657,817 common shares at a cost of $27.5 million |
• | Declared quarterly cash dividends on common stock of $0.35 per share payable on March 2, 2020 |
Merger-related Expenses and Notable items in the Fourth Quarter(1)
• | Pre-tax merger-related expenses of $47.0 million, $36.1 million net of tax, or $0.24 per diluted common share for the fourth quarter |
• | Pre-tax loss of $22.1 million, $13.1 million net of tax, or $0.08 per diluted common share related to notable items for the fourth quarter, see summary of notable items adjustments below |
(1) | Denotes a non-GAAP financial measure. See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables and the following table detailing merger-related expenses and notable items. |
Note: TCF’s financial results for periods ended prior to August 1, 2019 reflect Legacy TCF financial results only on a standalone basis. In addition, TCF’s reported financial results for the third quarter of 2019 and the year ended December 31, 2019 reflect Legacy TCF financial results for the period before August 1, 2019 and the post-merger combined TCF financial results on and after August 1, 2019, with the fourth quarter of 2019 financial results being solely of the post-merger combined TCF. As a result, TCF’s financial results for the fourth quarter, third quarter and year ended December 31, 2019 may not be directly comparable to prior reported periods. The number of shares issued and outstanding, earnings per share, additional paid-in-capital, dividends paid and all references to share quantities of TCF have been retrospectively restated to reflect the equivalent number of shares issued in the Merger as the Merger was treated as a reverse merger.
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Summary of Financial Results(1) | ||||||||||||||||||||||||||
At or For the Quarter Ended | Change From | |||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Dec. 31, | ||||||||||||||||||||
(Dollars in thousands, except per share data) | 2019 | 2019 | 2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
Financial Results | ||||||||||||||||||||||||||
Net income attributable to TCF | $ | 112,399 | $ | 22,148 | $ | 90,427 | $ | 70,494 | $ | 85,652 | N.M. | % | 31.2 | % | ||||||||||||
Net interest income | 408,753 | 371,793 | 254,057 | 254,429 | 253,153 | 9.9 | 61.5 | |||||||||||||||||||
Basic earnings per common share | $ | 0.72 | $ | 0.15 | $ | 1.07 | $ | 0.83 | $ | 1.00 | N.M. | (28.0 | ) | |||||||||||||
Diluted earnings per common share | 0.72 | 0.15 | 1.07 | 0.83 | 1.00 | N.M. | (28.0 | ) | ||||||||||||||||||
Return on average assets ("ROAA")(3) | 0.99 | % | 0.26 | % | 1.54 | % | 1.22 | % | 1.52 | % | 73 | bps | (53 | ) | bps | |||||||||||
ROACE(3) | 8.00 | 1.75 | 14.27 | 11.40 | 14.30 | 625 | (630 | ) | ||||||||||||||||||
ROATCE (non-GAAP)(2)(3) | 11.35 | 2.68 | 15.46 | 12.42 | 15.58 | 867 | (423 | ) | ||||||||||||||||||
Net interest margin | 3.86 | 4.12 | 4.46 | 4.58 | 4.63 | (26 | ) | (77 | ) | |||||||||||||||||
Net interest margin (FTE)(2)(3) | 3.89 | 4.14 | 4.49 | 4.61 | 4.67 | (25 | ) | (78 | ) | |||||||||||||||||
Net charge-offs as a percentage of average loans and leases(3) | 0.07 | 0.39 | 0.29 | 0.39 | 0.46 | (32 | ) | (39 | ) | |||||||||||||||||
Nonperforming assets as a percentage of total loans and leases and other real estate owned | 0.59 | 0.62 | 0.62 | 0.63 | 0.65 | (3 | ) | (6 | ) | |||||||||||||||||
Efficiency ratio | 73.49 | 91.32 | 65.11 | 70.70 | 66.30 | (1,783 | ) | 719 | ||||||||||||||||||
Adjusted Financial Results (non-GAAP) | ||||||||||||||||||||||||||
Adjusted net income attributable to TCF(2) | $ | 161,581 | $ | 128,301 | $ | 93,650 | $ | 77,700 | $ | 85,652 | 25.9 | % | 88.6 | % | ||||||||||||
Adjusted diluted earnings per common share(2) | $ | 1.04 | $ | 0.98 | $ | 1.11 | $ | 0.91 | $ | 1.00 | 6.1 | 4.0 | ||||||||||||||
Adjusted ROAA(2)(3) | 1.42 | % | 1.34 | % | 1.59 | % | 1.34 | % | 1.52 | % | 8 | bps | (10 | ) | bps | |||||||||||
Adjusted ROACE(2)(3) | 11.57 | 11.21 | 14.79 | 12.61 | 14.30 | 36 | (273 | ) | ||||||||||||||||||
Adjusted ROATCE(2)(3) | 16.25 | 14.96 | 16.02 | 13.72 | 15.58 | 129 | 67 | |||||||||||||||||||
Adjusted efficiency ratio(2) | 58.51 | 58.74 | 61.48 | 65.67 | 63.89 | (23 | ) | (538 | ) |
N.M. Not meaningful
(1) | Financial results for any periods ended prior to August 1, 2019 reflect Legacy TCF financials on a standalone basis. Certain reclassifications have been made to prior period financial information to conform to the current period presentation. |
(2) | Denotes a non-GAAP financial measure. See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables. |
(3) | Annualized. |
The following table includes merger-related expenses and notable items used to arrive at adjusted net income in the Adjusted Financial Results (non-GAAP) (see Reconciliation of Non-GAAP Financial Measures).
For the Quarter Ended December 31, 2019 | |||||||||||
(Dollars in thousands, except per share data) | Pre-tax income (loss) | After-tax benefit (loss)(1) | Per Share | ||||||||
Merger-related expenses | $ | (47,025 | ) | $ | (36,059 | ) | $ | (0.24 | ) | ||
Notable items: | |||||||||||
Sale of Legacy TCF auto finance portfolio(2) | (12,864 | ) | (9,865 | ) | (0.06 | ) | |||||
Branch exit costs(3) | (3,494 | ) | (2,679 | ) | (0.02 | ) | |||||
Loan servicing rights impairment recovery(4) | 638 | 490 | — | ||||||||
Pension fair valuation adjustment(3) | (6,341 | ) | (4,862 | ) | (0.03 | ) | |||||
Tax basis adjustment benefit(5) | — | 3,793 | 0.03 | ||||||||
Total notable items | (22,061 | ) | (13,123 | ) | (0.08 | ) | |||||
Total merger-related and notable items | $ | (69,086 | ) | $ | (49,182 | ) | $ | (0.32 | ) |
(1) | Net of tax benefit at TCF's normal tax rate and other tax benefits. |
(2) | Included within net (loss) gain on sales of loans and leases ($8.2 million), other noninterest expense ($2.2 million), occupancy and equipment ($1.5 million) and compensation and employee benefits ($0.9 million). |
(3) | Included within Other noninterest expense. |
(4) | Included within Other noninterest income. |
(5) | Included within Income tax expense (benefit). |
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DETROIT (January 27, 2020) - TCF Financial Corporation ("TCF" or the "Corporation") (NASDAQ: TCF) today reported net income of $112.4 million and diluted earnings per common share of $0.72 for the fourth quarter of 2019. Adjusted net income was $161.6 million, or $1.04 per diluted common share, for the fourth quarter of 2019, excluding merger-related expenses and notable items of $0.32 per common share (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).
"We closed out the year with our first full quarter as a combined organization following our merger of equals and we produced strong business results, driven by robust loan growth led by our commercial businesses, strong credit quality, and continued progress on our integration roadmap," said Craig R. Dahl, president and chief executive officer. "We continued to execute on our business strategies, including completing the sale of the legacy auto finance portfolio, adding key talent to our commercial banking teams, and ensuring we maintain our business momentum as we go into 2020. We remained focused on executing on our targeted expense synergies and integration activities throughout the year. Our strong capital position allows us to continue to pursue organic growth opportunities and leverage our scale and product breadth created by our strategic partnership. I am confident in our opportunities in 2020, and we will continue to focus on our commitment to delivering value for our shareholders."
Net Interest Income and Net Interest Margin
Net interest income was $408.8 million for the fourth quarter of 2019. Purchase accounting accretion and amortization included in net interest income was $30.5 million. Net interest income, excluding purchase accounting accretion and amortization, was $378.3 million. Net interest margin was 3.86% for the fourth quarter of 2019 while net interest margin on a fully tax-equivalent basis (FTE) was 3.89%. Net interest margin FTE, excluding purchase accounting accretion and amortization, was 3.60% (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).
Noninterest Income
Noninterest income was $158.1 million for the fourth quarter of 2019. Noninterest income included the following notable items: an $8.2 million loss related to the sale of the Legacy TCF auto finance portfolio, included in net gains (losses) on sales of loans and leases, and a $0.6 million recovery of prior loan servicing rights impairment, included in other noninterest income. Adjusted noninterest income for the fourth quarter of 2019 was $165.6 million (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables). The fourth quarter of 2019 also included a $3.7 million gain on sale of loans and leases related to a nonaccrual and TDR loan sale, included in net gains (losses) on sales of loans and leases and a $2.4 million favorable interest rate swap mark-to-market adjustment resulting from changes in the interest rate environment, included in other noninterest income.
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Noninterest Expense
Noninterest expense was $416.6 million for the fourth quarter of 2019 and included $47.0 million of merger-related expenses. Noninterest expense also included the following notable items: $6.3 million of expense related to pension fair valuation adjustment on plans with previously announced terminations, included in other noninterest expense, $4.6 million of expense related to the sale of the Legacy TCF auto finance portfolio ($2.2 million in other noninterest expense, $1.5 million in occupancy and equipment expense and $0.9 million in compensation and employee benefits) and $3.5 million of expense related to branch exit costs, included in other noninterest expense. Excluding merger-related expenses and notable items, adjusted noninterest expense was $355.0 million (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables). The fourth quarter of 2019 also included $4.0 million of impairment related to federal historic tax credits placed into service, included in other noninterest expense, and a $1.3 million impairment charge recognized on a branch we intend to sell in the future, included within occupancy and equipment expense. The $4.0 million of impairment related to federal historic tax credits placed into service was more than offset by an income tax benefit of $3.6 million related to the same tax credits.
Income Tax Expense
Income tax expense for the fourth quarter of 2019 was $21.4 million. In addition to the $3.6 million historic tax credit benefit noted above, the fourth quarter of 2019 also included a $3.8 million tax basis adjustment benefit.
Credit Quality
Provision for credit losses Provision for credit losses was $14.4 million for the fourth quarter of 2019. Provision for credit losses for the fourth quarter of 2019 was reduced by $4.7 million of recoveries of previous charge-offs related to the sale of consumer nonaccrual and TDR loans.
Net charge-off rate The annualized net charge-offs as a percentage of average loans and leases was 0.07% for the fourth quarter of 2019. Net charge-offs for the fourth quarter of 2019 were reduced by $4.7 million of recoveries of previous charge-offs related to the sale of consumer nonaccrual and TDR loans. The annualized net charge-off rate excluding this recovery was 0.13% (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).
Allowance for Loan and Lease Losses Allowance for loan and lease losses was $113.1 million, or 0.33% of total loans and leases, at December 31, 2019, down from $121.2 million, or 0.36%, at September 30, 2019.
Nonaccrual loans and leases Nonaccrual loans and leases were $169.7 million at December 31, 2019 and represented 0.49% of total loans and leases, compared to $181.8 million, or 0.54% of total loans and leases, at September 30, 2019. The decrease of nonaccrual loans and leases from September 30, 2019 was primarily due to $17.3 million of consumer nonaccrual loans sold in the fourth quarter of 2019.
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Balance Sheet
Loans and leases Loans and leases were $34.5 billion at December 31, 2019, an increase of $986.7 million compared to $33.5 billion at September 30, 2019. The increase from September 30, 2019 was primarily due to growth in the commercial and industrial and commercial real estate portfolios. During the fourth quarter of 2019, TCF completed the sale of the $1.1 billion Legacy TCF auto finance portfolio, which had been included within loans held-for-sale at September 30, 2019.
Investment securities The investment securities portfolio was $6.9 billion at December 31, 2019, compared to $5.7 billion at September 30, 2019. The increase from September 30, 2019 was primarily due to the continued reinvestment into the investment securities portfolio following repositioning actions taken in the third quarter of 2019.
Deposits Deposits were $34.5 billion at December 31, 2019, compared to $35.3 billion at September 30, 2019. The decrease from September 30, 2019 was primarily due to the run-off of $930.4 million of certificates of deposit, which included $402.3 million of brokered certificates of deposit.
Capital The common equity Tier 1 capital ratio was 10.99% at December 31, 2019.
TCF repurchased $27.5 million of its common stock during the fourth quarter of 2019 and had the authority to repurchase an additional $122.5 million in aggregate value of shares as of December 31, 2019 pursuant to its share repurchase program.
TCF's board of directors also declared a regular quarterly cash dividend of $0.35 per common share payable on March 2, 2020 to shareholders of record at the close of business on February 14, 2020. In addition, the board of directors declared a quarterly cash dividend of $0.35625 per depositary share payable on March 2, 2020 to shareholders of record of the depositary shares, representing a 1/1,000th interest in a share of the 5.70% Series C Non-Cumulative Perpetual Preferred Stock, at the close of business on February 14, 2020.
Conference Call Details TCF will host a conference call to discuss fourth quarter 2019 results on Tuesday, January 28, 2020 at 10:00 a.m. Eastern Time. The conference call will be available via a live webcast on the Investor Relations section of TCF's website, ir.tcfbank.com, and archived for replay. The conference call can also be accessed by dialing (844) 512-2926 and entering access code 7648346. To listen to the replay via phone, please dial (877) 344-7529 and enter access code 10138016. The replay begins approximately one hour after the call is completed on Tuesday, January 28, 2020 and will be available through Tuesday, February 4, 2020.
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TCF Financial Corporation (NASDAQ: TCF) is a Detroit, Michigan-based financial holding company with $47 billion in total assets at December 31, 2019 and a top 10 deposit market share in the Midwest. TCF’s primary banking subsidiary, TCF National Bank, is a premier Midwest bank offering consumer and commercial banking, trust and wealth management, and specialty leasing and lending products and services to consumers, small businesses and commercial clients. TCF has approximately 500 branches primarily located in Michigan, Illinois and Minnesota with additional locations in Arizona, Colorado, Ohio, South Dakota and Wisconsin. TCF also conducts business across all 50 states and Canada through its specialty lending and leasing businesses. To learn more about TCF, visit ir.tcfbank.com.
Cautionary Statements for Purposes of the Safe Harbor Provisions of the Securities Litigation Reform Act
Any statements contained in this earnings release regarding the outlook for the Corporation's businesses and their respective markets, such as projections of future performance, targets, guidance, statements of the Corporation's plans and objectives, forecasts of market trends and other matters are forward-looking statements based on the Corporation's assumptions and beliefs. Such statements may be identified by such words or phrases as "will likely result," "are expected to," "will continue," "outlook," "will benefit," "is anticipated," "estimate," "project," "management believes" or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those discussed in such statements and no assurance can be given that the results in any forward-looking statement will be achieved. For these statements, TCF claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Any forward-looking statement speaks only as of the date on which it is made and we disclaim any obligation to subsequently revise any forward-looking statement to reflect events or circumstances after such date or to reflect the occurrence of anticipated or unanticipated events.
Certain factors could cause the Corporation's future results to differ materially from those expressed or implied in any forward-looking statements contained herein. These factors include the factors discussed in Part I, Item 1A. of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2018 under the heading "Risk Factors" 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.
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Use of Non-GAAP Financial Measures
Management uses the adjusted net income, adjusted diluted earnings per common share, adjusted ROAA, adjusted ROACE, ROATCE, adjusted ROATCE, adjusted efficiency ratio, adjusted net interest income, net interest margin (FTE), adjusted net interest margin (FTE), adjusted noninterest income, adjusted noninterest expense, tangible book value per common share and tangible common equity to tangible assets internally to measure performance and believes that these financial measures not recognized under generally accepted accounting principles in the United States ("GAAP") (i.e. non-GAAP) provide meaningful information to investors that will permit them to assess the Corporation's capital and ability to withstand unexpected market or economic conditions and to assess the performance of the Corporation in relation to other banking institutions on the same basis as that applied by management, analysts and banking regulators. TCF adjusts certain results to exclude merger-related expenses and notable items in addition to presenting net interest income and net interest margin (FTE) excluding purchase accounting accretion and amortization. Management believes these measures are useful to investors in understanding TCF's business and operating results.
These non-GAAP financial measures are not defined by GAAP and other entities may calculate them differently than TCF does. Non-GAAP financial measures have inherent limitations and are not required to be uniformly applied. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a corporation, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of results as reported under GAAP. In particular, a measure of earnings that excludes selected items does not represent the amount that effectively accrues directly to shareholders.
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TCF FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||||
Consolidated Statements of Financial Condition (Unaudited) | |||||||||||||||||||||||||||||
Change From | |||||||||||||||||||||||||||||
(Dollars in thousands) | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, 2019 | Dec. 31, 2018 | ||||||||||||||||||||||
2019 | 2019 | 2019 | 2019 | 2018 | $ | % | $ | % | |||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||||||||
Cash and due from banks | $ | 491,787 | $ | 586,060 | $ | 294,566 | $ | 283,659 | $ | 279,267 | $ | (94,273 | ) | (16.1 | )% | $ | 212,520 | 76.1% | |||||||||||
Interest-bearing deposits with other banks | 736,584 | 736,954 | 260,705 | 180,163 | 307,790 | (370 | ) | (0.1 | ) | 428,794 | 139.3 | ||||||||||||||||||
Total cash and cash equivalents | 1,228,371 | 1,323,014 | 555,271 | 463,822 | 587,057 | (94,643 | ) | (7.2 | ) | 641,314 | 109.2 | ||||||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost | 442,440 | 290,238 | 105,659 | 103,644 | 91,654 | 152,202 | 52.4 | 350,786 | N.M. | ||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale, at fair value | 6,720,001 | 5,579,835 | 3,109,803 | 2,945,342 | 2,470,065 | 1,140,166 | 20.4 | 4,249,936 | 172.1 | ||||||||||||||||||||
Held-to-maturity, at amortized cost | 139,445 | 144,000 | 144,919 | 148,024 | 148,852 | (4,555 | ) | (3.2 | ) | (9,407 | ) | (6.3) | |||||||||||||||||
Total investment securities | 6,859,446 | 5,723,835 | 3,254,722 | 3,093,366 | 2,618,917 | 1,135,611 | 19.8 | 4,240,529 | 161.9 | ||||||||||||||||||||
Loans and leases held-for-sale | 199,786 | 1,436,069 | 74,410 | 64,468 | 90,664 | (1,236,283 | ) | (86.1) | 109,122 | 120.4 | |||||||||||||||||||
Loans and leases | 34,497,464 | 33,510,752 | 19,185,137 | 19,384,210 | 19,073,020 | 986,712 | 2.9 | 15,424,444 | 80.9 | ||||||||||||||||||||
Allowance for loan and lease losses | (113,052 | ) | (121,218 | ) | (146,503 | ) | (147,972 | ) | (157,446 | ) | 8,166 | 6.7 | 44,394 | 28.2 | |||||||||||||||
Loans and leases, net | 34,384,412 | 33,389,534 | 19,038,634 | 19,236,238 | 18,915,574 | 994,878 | 3.0 | 15,468,838 | 81.8 | ||||||||||||||||||||
Premises and equipment, net | 533,138 | 554,194 | 432,751 | 429,711 | 427,534 | (21,056 | ) | (3.8 | ) | 105,604 | 24.7 | ||||||||||||||||||
Goodwill | 1,299,878 | 1,265,111 | 154,757 | 154,757 | 154,757 | 34,767 | 2.7 | 1,145,121 | N.M. | ||||||||||||||||||||
Other intangible assets, net | 168,368 | 215,910 | 18,885 | 19,684 | 20,496 | (47,542 | ) | (22.0) | 147,872 | N.M. | |||||||||||||||||||
Loan servicing rights | 56,313 | 55,301 | 19 | 20 | 23 | 1,012 | 1.8 | 56,290 | N.M. | ||||||||||||||||||||
Other assets | 1,479,401 | 1,439,305 | 991,722 | 853,005 | 792,936 | 40,096 | 2.8 | 686,465 | 86.6 | ||||||||||||||||||||
Total assets | $ | 46,651,553 | $ | 45,692,511 | $ | 24,626,830 | $ | 24,418,715 | $ | 23,699,612 | $ | 959,042 | 2.1 | $ | 22,951,941 | 96.8 | |||||||||||||
LIABILITIES AND EQUITY: | |||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||
Noninterest-bearing | $ | 7,970,590 | $ | 7,979,900 | $ | 4,062,912 | $ | 4,104,652 | $ | 3,936,155 | $ | (9,310 | ) | (0.1)% | $ | 4,034,435 | 102.5% | ||||||||||||
Interest-bearing | 26,497,873 | 27,306,174 | 15,049,475 | 14,919,459 | 14,967,531 | (808,301 | ) | (3.0) | 11,530,342 | 77.0 | |||||||||||||||||||
Total deposits | 34,468,463 | 35,286,074 | 19,112,387 | 19,024,111 | 18,903,686 | (817,611 | ) | (2.3) | 15,564,777 | 82.3 | |||||||||||||||||||
Short-term borrowings | 2,669,145 | 2,607,300 | 350,764 | 355,992 | — | 61,845 | 2.4 | 2,669,145 | N.M. | ||||||||||||||||||||
Long-term borrowings | 2,354,448 | 860,482 | 1,617,531 | 1,411,426 | 1,449,472 | 1,493,966 | 173.6 | 904,976 | 62.4 | ||||||||||||||||||||
Other liabilities | 1,432,256 | 1,245,238 | 835,630 | 981,341 | 790,194 | 187,018 | 15.0 | 642,062 | 81.3 | ||||||||||||||||||||
Total liabilities | 40,924,312 | 39,999,094 | 21,916,312 | 21,772,870 | 21,143,352 | 925,218 | 2.3 | 19,780,960 | 93.6 | ||||||||||||||||||||
Equity: | |||||||||||||||||||||||||||||
Preferred stock | 169,302 | 169,302 | 169,302 | 169,302 | 169,302 | — | — | — | — | ||||||||||||||||||||
Common stock | 152,966 | 153,571 | 87,944 | 88,063 | 88,198 | (605 | ) | (0.4) | 64,768 | 73.4 | |||||||||||||||||||
Additional paid-in capital | 3,462,080 | 3,478,159 | 781,788 | 789,467 | 798,627 | (16,079 | ) | (0.5) | 2,663,453 | N.M. | |||||||||||||||||||
Retained earnings | 1,896,427 | 1,840,214 | 1,874,308 | 1,810,701 | 1,766,994 | 56,213 | 3.1 | 129,433 | 7.3 | ||||||||||||||||||||
Accumulated other comprehensive income (loss) | 54,277 | 56,228 | 37,334 | 5,481 | (33,138 | ) | (1,951 | ) | (3.5) | 87,415 | N.M. | ||||||||||||||||||
Treasury stock at cost and other | (28,037 | ) | (27,370 | ) | (265,016 | ) | (246,621 | ) | (252,182 | ) | (667 | ) | (2.4) | 224,145 | 88.9 | ||||||||||||||
Total TCF Financial Corporation shareholders' equity | 5,707,015 | 5,670,104 | 2,685,660 | 2,616,393 | 2,537,801 | 36,911 | 0.7 | 3,169,214 | 124.9 | ||||||||||||||||||||
Non-controlling interest | 20,226 | 23,313 | 24,858 | 29,452 | 18,459 | (3,087 | ) | (13.2) | 1,767 | 9.6 | |||||||||||||||||||
Total equity | 5,727,241 | 5,693,417 | 2,710,518 | 2,645,845 | 2,556,260 | 33,824 | 0.6 | 3,170,981 | 124.0 | ||||||||||||||||||||
Total liabilities and equity | $ | 46,651,553 | $ | 45,692,511 | $ | 24,626,830 | $ | 24,418,715 | $ | 23,699,612 | $ | 959,042 | 2.1 | $ | 22,951,941 | 96.8 |
N.M. Not Meaningful
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TCF FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
Consolidated Statements of Income (Unaudited) | |||||||||||||||||||||||||||||||||
Quarter Ended | Change From | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, 2019 | Dec. 31, 2018 | ||||||||||||||||||||||||||
2019 | 2019 | 2019 | 2019 | 2018 | $ | % | $ | % | |||||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||||||
Interest and fees on loans and leases | $ | 446,738 | $ | 417,370 | $ | 283,282 | $ | 283,238 | $ | 275,200 | $ | 29,368 | 7.0 | % | $ | 171,538 | 62.3 | % | |||||||||||||||
Interest on investment securities: | |||||||||||||||||||||||||||||||||
Taxable | 36,282 | 31,038 | 22,041 | 16,666 | 13,915 | 5,244 | 16.9 | 22,367 | 160.7 | ||||||||||||||||||||||||
Tax-exempt | 4,374 | 3,385 | 1,208 | 2,684 | 4,147 | 989 | 29.2 | 227 | 5.5 | ||||||||||||||||||||||||
Interest on loans held-for-sale | 15,767 | 1,408 | 599 | 825 | 1,405 | 14,359 | N.M. | 14,362 | N.M. | ||||||||||||||||||||||||
Interest on other earning assets | 6,617 | 6,607 | 3,651 | 3,481 | 3,242 | 10 | 0.2 | 3,375 | 104.1 | ||||||||||||||||||||||||
Total interest income | 509,778 | 459,808 | 310,781 | 306,894 | 297,909 | 49,970 | 10.9 | 211,869 | 71.1 | ||||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||||||||
Interest on deposits | 77,003 | 70,900 | 40,646 | 37,608 | 33,462 | 6,103 | 8.6 | 43,541 | 130.1 | ||||||||||||||||||||||||
Interest on borrowings | 24,022 | 17,115 | 16,078 | 14,857 | 11,294 | 6,907 | 40.4 | 12,728 | 112.7 | ||||||||||||||||||||||||
Total interest expense | 101,025 | 88,015 | 56,724 | 52,465 | 44,756 | 13,010 | 14.8 | 56,269 | 125.7 | ||||||||||||||||||||||||
Net interest income | 408,753 | 371,793 | 254,057 | 254,429 | 253,153 | 36,960 | 9.9 | 155,600 | 61.5 | ||||||||||||||||||||||||
Provision for credit losses | 14,403 | 27,188 | 13,569 | 10,122 | 18,894 | (12,785 | ) | (47.0 | ) | (4,491 | ) | (23.8 | ) | ||||||||||||||||||||
Net interest income after provision for credit losses | 394,350 | 344,605 | 240,488 | 244,307 | 234,259 | 49,745 | 14.4 | 160,091 | 68.3 | ||||||||||||||||||||||||
Noninterest income: | |||||||||||||||||||||||||||||||||
Fees and service charges on deposit accounts | 39,356 | 34,384 | 27,842 | 26,278 | 29,539 | 4,972 | 14.5 | 9,817 | 33.2 | ||||||||||||||||||||||||
Leasing revenue | 46,686 | 39,590 | 39,277 | 38,165 | 51,602 | 7,096 | 17.9 | (4,916 | ) | (9.5 | ) | ||||||||||||||||||||||
Wealth management revenue | 6,172 | 4,241 | — | — | — | 1,931 | 45.5 | 6,172 | N.M. | ||||||||||||||||||||||||
Card and ATM revenue | 24,751 | 23,315 | 20,496 | 18,659 | 20,093 | 1,436 | 6.2 | 4,658 | 23.2 | ||||||||||||||||||||||||
Net gains (losses) on sales of loans and leases | 12,934 | (5,984 | ) | 11,141 | 8,217 | 8,795 | 18,918 | N.M. | 4,139 | 47.1 | |||||||||||||||||||||||
Servicing fee revenue | 6,022 | 5,121 | 4,523 | 5,110 | 5,523 | 901 | 17.6 | 499 | 9.0 | ||||||||||||||||||||||||
Net gains on investment securities | 8 | 5,900 | 1,066 | 451 | 167 | (5,892 | ) | (99.9 | ) | (159 | ) | (95.2 | ) | ||||||||||||||||||||
Other | 22,123 | (12,309 | ) | 5,373 | 6,624 | 8,149 | 34,432 | N.M. | 13,974 | 171.5 | |||||||||||||||||||||||
Total noninterest income | 158,052 | 94,258 | 109,718 | 103,504 | 123,868 | 63,794 | 67.7 | 34,184 | 27.6 | ||||||||||||||||||||||||
Noninterest expense: | |||||||||||||||||||||||||||||||||
Compensation and employee benefits | 180,969 | 155,745 | 116,266 | 123,942 | 130,022 | 25,224 | 16.2 | 50,947 | 39.2 | ||||||||||||||||||||||||
Occupancy and equipment | 56,771 | 49,229 | 41,850 | 41,710 | 42,277 | 7,542 | 15.3 | 14,494 | 34.3 | ||||||||||||||||||||||||
Lease financing equipment depreciation | 18,629 | 19,408 | 19,133 | 19,256 | 19,085 | (779 | ) | (4.0 | ) | (456 | ) | (2.4 | ) | ||||||||||||||||||||
Net foreclosed real estate and repossessed assets | 4,242 | 2,203 | 2,448 | 4,630 | 4,396 | 2,039 | 92.6 | (154 | ) | (3.5 | ) | ||||||||||||||||||||||
Merger-related expenses | 47,025 | 111,259 | 4,226 | 9,458 | — | (64,234 | ) | (57.7 | ) | 47,025 | N.M. | ||||||||||||||||||||||
Other | 108,935 | 87,776 | 52,926 | 54,079 | 54,178 | 21,159 | 24.1 | 54,757 | 101.1 | ||||||||||||||||||||||||
Total noninterest expense | 416,571 | 425,620 | 236,849 | 253,075 | 249,958 | (9,049 | ) | (2.1 | ) | 166,613 | 66.7 | ||||||||||||||||||||||
Income before income tax expense | 135,831 | 13,243 | 113,357 | 94,736 | 108,169 | 122,588 | N.M. | 27,662 | 25.6 | ||||||||||||||||||||||||
Income tax expense (benefit) | 21,375 | (11,735 | ) | 19,314 | 21,287 | 20,013 | 33,110 | N.M. | 1,362 | 6.8 | |||||||||||||||||||||||
Income after income tax expense (benefit) | 114,456 | 24,978 | 94,043 | 73,449 | 88,156 | 89,478 | N.M. | 26,300 | 29.8 | ||||||||||||||||||||||||
Income attributable to non-controlling interest | 2,057 | 2,830 | 3,616 | 2,955 | 2,504 | (773 | ) | (27.3 | ) | (447 | ) | (17.9 | ) | ||||||||||||||||||||
Net income attributable to TCF Financial Corporation | 112,399 | 22,148 | 90,427 | 70,494 | 85,652 | 90,251 | N.M. | 26,747 | 31.2 | ||||||||||||||||||||||||
Preferred stock dividends | 2,494 | 2,494 | 2,494 | 2,493 | 2,494 | — | — | — | — | ||||||||||||||||||||||||
Net income available to common shareholders | $ | 109,905 | $ | 19,654 | $ | 87,933 | $ | 68,001 | $ | 83,158 | $ | 90,251 | N.M. | $ | 26,747 | 32.2 |
N.M. Not Meaningful
9
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||
Consolidated Statements of Income (Unaudited) | ||||||||||||||
Year Ended December 31, | Change | |||||||||||||
(Dollars in thousands, except per share data) | 2019 | 2018 | $ | % | ||||||||||
Interest income: | ||||||||||||||
Interest and fees on loans and leases | $ | 1,430,628 | $ | 1,082,135 | $ | 348,493 | 32.2 | % | ||||||
Interest on investment securities: | ||||||||||||||
Taxable | 106,027 | 41,406 | 64,621 | 156.1 | ||||||||||
Tax-exempt | 11,651 | 17,138 | (5,487 | ) | (32.0 | ) | ||||||||
Interest on loans held-for-sale | 18,599 | 6,686 | 11,913 | 178.2 | ||||||||||
Interest on other earning assets | 20,356 | 11,964 | 8,392 | 70.1 | ||||||||||
Total interest income | 1,587,261 | 1,159,329 | 427,932 | 36.9 | ||||||||||
Interest expense: | ||||||||||||||
Interest on deposits | 226,157 | 107,690 | 118,467 | 110.0 | ||||||||||
Interest on borrowings | 72,072 | 43,144 | 28,928 | 67.0 | ||||||||||
Total interest expense | 298,229 | 150,834 | 147,395 | 97.7 | ||||||||||
Net interest income | 1,289,032 | 1,008,495 | 280,537 | 27.8 | ||||||||||
Provision for credit losses | 65,282 | 46,768 | 18,514 | 39.6 | ||||||||||
Net interest income after provision for credit losses | 1,223,750 | 961,727 | 262,023 | 27.2 | ||||||||||
Noninterest income: | ||||||||||||||
Fees and service charges on deposit accounts | 127,860 | 113,242 | 14,618 | 12.9 | ||||||||||
Leasing revenue | 163,718 | 172,603 | (8,885 | ) | (5.1 | ) | ||||||||
Wealth management revenue | 10,413 | — | 10,413 | N.M. | ||||||||||
Card and ATM revenue | 87,221 | 78,406 | 8,815 | 11.2 | ||||||||||
Net gains on sales of loans and leases | 26,308 | 33,695 | (7,387 | ) | (21.9 | ) | ||||||||
Servicing fee revenue | 20,776 | 27,334 | (6,558 | ) | (24.0 | ) | ||||||||
Net gains on investment securities | 7,425 | 348 | 7,077 | N.M. | ||||||||||
Other | 21,811 | 28,769 | (6,958 | ) | (24.2 | ) | ||||||||
Total noninterest income | 465,532 | 454,397 | 11,135 | 2.5 | ||||||||||
Noninterest expense: | ||||||||||||||
Compensation and employee benefits | 576,922 | 502,196 | 74,726 | 14.9 | ||||||||||
Occupancy and equipment | 189,560 | 165,839 | 23,721 | 14.3 | ||||||||||
Lease financing equipment depreciation | 76,426 | 73,829 | 2,597 | 3.5 | ||||||||||
Net foreclosed real estate and repossessed assets | 13,523 | 17,050 | (3,527 | ) | (20.7 | ) | ||||||||
Merger-related expenses | 171,968 | — | 171,968 | N.M. | ||||||||||
Other | 303,716 | 255,486 | 48,230 | 18.9 | ||||||||||
Total noninterest expense | 1,332,115 | 1,014,400 | 317,715 | 31.3 | ||||||||||
Income before income tax expense | 357,167 | 401,724 | (44,557 | ) | (11.1 | ) | ||||||||
Income tax expense | 50,241 | 86,096 | (35,855 | ) | (41.6 | ) | ||||||||
Income after income tax expense | 306,926 | 315,628 | (8,702 | ) | (2.8 | ) | ||||||||
Income attributable to non-controlling interest | 11,458 | 11,270 | 188 | 1.7 | ||||||||||
Net income attributable to TCF Financial Corporation | 295,468 | 304,358 | (8,890 | ) | (2.9 | ) | ||||||||
Preferred stock dividends | 9,975 | 11,588 | (1,613 | ) | (13.9 | ) | ||||||||
Impact of preferred stock redemption | — | 3,481 | (3,481 | ) | (100.0 | ) | ||||||||
Net income available to common shareholders | $ | 285,493 | $ | 289,289 | $ | (3,796 | ) | (1.3 | ) | |||||
Earnings per common share: | ||||||||||||||
Basic | $ | 2.56 | $ | 3.44 | $ | (0.88 | ) | (25.6 | )% | |||||
Diluted | 2.55 | 3.43 | (0.88 | ) | (25.7 | ) |
N.M. Not Meaningful
10
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||
Consolidated Average Balance Sheets, Yields and Rates (Unaudited) | |||||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |||||||||||||||||||||
Average | Yields & | Average | Yields & | Average | Yields & | ||||||||||||||||||
(Dollars in thousands) | Balance | Interest(1) | Rates(1)(2) | Balance | Interest(1) | Rates(1)(2) | Balance | Interest(1) | Rates(1)(2) | ||||||||||||||
ASSETS: | |||||||||||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank stocks | $ | 388,640 | $ | 3,170 | 3.24% | $ | 230,767 | $ | 806 | 1.39% | $ | 87,321 | $ | 920 | 4.19% | ||||||||
Investment securities held-to-maturity | 140,434 | 889 | 2.53 | 143,078 | 602 | 1.68 | 150,016 | 965 | 2.58 | ||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||
Taxable | 4,960,520 | 35,393 | 2.85 | 4,232,878 | 30,436 | 2.88 | 1,779,654 | 12,949 | 2.91 | ||||||||||||||
Tax-exempt(3) | 778,994 | 5,536 | 2.84 | 643,576 | 4,283 | 2.66 | 788,806 | 5,250 | 2.66 | ||||||||||||||
Loans and leases held-for-sale | 1,121,326 | 15,767 | 5.58 | 118,482 | 1,408 | 4.74 | 86,169 | 1,405 | 6.48 | ||||||||||||||
Loans and leases(3)(4) | |||||||||||||||||||||||
Commercial and industrial | 10,955,937 | 156,246 | 5.63 | 9,290,978 | 146,865 | 6.25 | 6,116,369 | 98,019 | 6.36 | ||||||||||||||
Commercial real estate | 9,057,834 | 124,431 | 5.38 | 6,964,643 | 97,042 | 5.45 | 2,795,403 | 35,851 | 5.02 | ||||||||||||||
Lease financing | 2,616,360 | 33,431 | 5.11 | 2,570,567 | 32,833 | 5.11 | 2,479,045 | 32,984 | 5.32 | ||||||||||||||
Residential mortgage | 6,023,647 | 61,072 | 4.05 | 4,853,627 | 51,511 | 4.23 | 1,957,323 | 25,951 | 5.27 | ||||||||||||||
Consumer installment | 1,546,952 | 19,382 | 4.97 | 2,389,830 | 34,543 | 5.73 | 2,134,568 | 30,246 | 5.62 | ||||||||||||||
Home equity | 3,604,153 | 53,910 | 5.93 | 3,433,830 | 56,166 | 6.49 | 3,072,697 | 53,146 | 6.86 | ||||||||||||||
Total loans and leases(3)(4) | 33,804,883 | 448,472 | 5.24 | 29,503,475 | 418,960 | 5.62 | 18,555,405 | 276,197 | 5.90 | ||||||||||||||
Interest-bearing deposits with banks and other | 656,555 | 3,448 | 2.07 | 933,014 | 5,800 | 2.44 | 243,038 | 2,322 | 3.79 | ||||||||||||||
Total interest-earning assets | 41,851,352 | 512,675 | 4.85 | 35,805,270 | 462,295 | 5.11 | 21,690,409 | 300,008 | 5.49 | ||||||||||||||
Other assets | 4,268,162 | 3,289,096 | 1,463,844 | ||||||||||||||||||||
Total assets | $ | 46,119,514 | $ | 39,094,366 | $ | 23,154,253 | |||||||||||||||||
LIABILITIES AND EQUITY: | |||||||||||||||||||||||
Noninterest-bearing deposits | $ | 7,968,769 | $ | 6,564,195 | $ | 3,873,023 | |||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||
Checking | 5,891,566 | 7,614 | 0.51% | 4,805,843 | 5,520 | 0.46% | 2,403,370 | 248 | 0.04% | ||||||||||||||
Savings | 8,404,460 | 14,993 | 0.71 | 7,676,165 | 14,110 | 0.73 | 5,922,724 | 8,114 | 0.54 | ||||||||||||||
Money market | 4,463,476 | 15,537 | 1.38 | 3,490,922 | 13,037 | 1.48 | 1,449,531 | 3,612 | 0.99 | ||||||||||||||
Certificates of deposit | 7,825,573 | 38,859 | 1.97 | 7,320,720 | 38,233 | 2.07 | 4,818,211 | 21,487 | 1.77 | ||||||||||||||
Total interest-bearing deposits | 26,585,075 | 77,003 | 1.15 | 23,293,650 | 70,900 | 1.21 | 14,593,836 | 33,461 | 0.91 | ||||||||||||||
Total deposits | 34,553,844 | 77,003 | 0.88 | 29,857,845 | 70,900 | 0.94 | 18,466,859 | 33,461 | 0.72 | ||||||||||||||
Borrowings: | |||||||||||||||||||||||
Short-term borrowings | 2,585,682 | 11,403 | 1.73 | 1,884,228 | 5,345 | 1.11 | 2,738 | 19 | 2.74 | ||||||||||||||
Long-term borrowings | 1,739,852 | 12,620 | 2.87 | 1,472,150 | 11,769 | 3.17 | 1,344,228 | 11,275 | 3.31 | ||||||||||||||
Total borrowings | 4,325,534 | 24,023 | 2.19 | 3,356,378 | 17,114 | 2.01 | 1,346,966 | 11,294 | 3.31 | ||||||||||||||
Total interest-bearing liabilities | 30,910,609 | 101,026 | 1.29 | 26,650,028 | 88,014 | 1.31 | 15,940,802 | 44,755 | 1.11 | ||||||||||||||
Total deposits and borrowings | 38,879,378 | 101,026 | 1.03 | 33,214,223 | 88,014 | 1.05 | 19,813,825 | 44,755 | 0.89 | ||||||||||||||
Accrued expenses and other liabilities | 1,549,017 | 1,197,014 | 822,558 | ||||||||||||||||||||
Total liabilities | 40,428,395 | 34,411,237 | 20,636,383 | ||||||||||||||||||||
Total TCF Financial Corporation shareholders' equity | 5,667,436 | 4,657,613 | 2,495,952 | ||||||||||||||||||||
Non-controlling interest in subsidiaries | 23,683 | 25,516 | 21,918 | ||||||||||||||||||||
Total equity | 5,691,119 | 4,683,129 | 2,517,870 | ||||||||||||||||||||
Total liabilities and equity | $ | 46,119,514 | $ | 39,094,366 | $ | 23,154,253 | |||||||||||||||||
Net interest spread (FTE) | 3.82% | 4.06% | 4.60% | ||||||||||||||||||||
Net interest income(FTE) and net interest margin(FTE) | $ | 411,649 | 3.89% | $ | 374,281 | 4.14% | $ | 255,253 | 4.67% | ||||||||||||||
Reconciliation to Reported Net Interest Income | |||||||||||||||||||||||
Net interest income (FTE) | $ | 411,649 | $ | 374,281 | $ | 255,253 | |||||||||||||||||
Adjustments for taxable equivalent interest(1)(3) | |||||||||||||||||||||||
Loans and leases | (1,734 | ) | (1,590 | ) | (997 | ) | |||||||||||||||||
Tax-exempt investment securities | (1,162 | ) | (898 | ) | (1,103 | ) | |||||||||||||||||
Total FTE adjustments | (2,896 | ) | (2,488 | ) | (2,100 | ) | |||||||||||||||||
Net interest income (GAAP) | $ | 408,753 | $ | 371,793 | $ | 253,153 | |||||||||||||||||
Net interest margin (GAAP) | 3.86 | % | 4.12 | % | 4.63 | % |
(1) | Interest and yields are presented on a fully tax-equivalent basis. |
(2) | Annualized. |
(3) | The yield on tax-exempt loans and investment securities available-for-sale is computed on a tax-equivalent basis using a statutory federal income tax rate of 21%. |
(4) | Average balances of loans and leases include nonaccrual loans and leases and are presented net of unearned income. |
11
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
Consolidated Average Balance Sheets, Yields and Rates (Unaudited) | |||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||
2019 | 2018 | ||||||||||||||||||
Average | Yields & | Average | Yields & | ||||||||||||||||
(Dollars in thousands) | Balance | Interest(1) | Rates(1) | Balance | Interest(1) | Rates(1) | |||||||||||||
ASSETS: | |||||||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank stocks | $ | 210,001 | $ | 6,030 | 2.87% | $ | 89,774 | $ | 3,618 | 4.03% | |||||||||
Investment securities held-to-maturity | 144,318 | 2,950 | 2.04 | 154,619 | 3,970 | 2.57 | |||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||
Taxable | 3,516,413 | 103,077 | 2.93 | 1,390,016 | 37,436 | 2.69 | |||||||||||||
Tax-exempt(3) | 541,525 | 14,746 | 2.72 | 815,540 | 21,694 | 2.66 | |||||||||||||
Loans and leases held-for-sale | 336,292 | 18,599 | 5.53 | 103,240 | 6,686 | 6.48 | |||||||||||||
Loans and leases(2)(3) | |||||||||||||||||||
Commercial and industrial | 8,371,066 | 519,506 | 6.18 | 6,171,331 | 386,541 | 6.25 | |||||||||||||
Commercial real estate | 5,523,347 | 298,414 | 5.33 | 2,799,523 | 135,791 | 4.78 | |||||||||||||
Lease financing | 2,570,109 | 131,547 | 5.12 | 2,459,823 | 125,185 | 5.09 | |||||||||||||
Residential mortgage | 3,902,959 | 170,706 | 4.37 | 1,788,729 | 95,375 | 5.33 | |||||||||||||
Consumer installment | 1,844,714 | 101,687 | 5.51 | 2,579,271 | 142,700 | 5.53 | |||||||||||||
Home equity | 3,272,760 | 214,116 | 6.54 | 3,028,370 | 200,356 | 6.62 | |||||||||||||
Total loans and leases(2)(3) | 25,484,955 | 1,435,976 | 5.61 | 18,827,047 | 1,085,948 | 5.75 | |||||||||||||
Interest-bearing deposits with banks and other | 534,979 | 14,326 | 2.66 | 229,698 | 8,346 | 3.63 | |||||||||||||
Total interest-earning assets | 30,768,483 | 1,595,704 | 5.17 | 21,609,934 | 1,167,698 | 5.39 | |||||||||||||
Other assets | 2,758,447 | 1,452,214 | |||||||||||||||||
Total assets | $ | 33,526,930 | $ | 23,062,148 | |||||||||||||||
LIABILITIES AND EQUITY: | |||||||||||||||||||
Noninterest-bearing deposits | $ | 5,622,092 | $ | 3,843,494 | |||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||
Checking | 3,920,613 | 13,961 | 0.36 | 2,438,040 | 714 | 0.03 | |||||||||||||
Savings | 7,203,987 | 52,087 | 0.72 | 5,621,723 | 20,009 | 0.36 | |||||||||||||
Money market | 2,729,156 | 37,615 | 1.38 | 1,553,255 | 11,582 | 0.75 | |||||||||||||
Certificates of deposit | 6,086,251 | 122,494 | 2.01 | 4,897,937 | 75,385 | 1.54 | |||||||||||||
Total interest-bearing deposits | 19,940,007 | 226,157 | 1.13 | 14,510,955 | 107,690 | 0.74 | |||||||||||||
Total deposits | 25,562,099 | 226,157 | 0.88 | 18,354,449 | 107,690 | 0.59 | |||||||||||||
Borrowings: | |||||||||||||||||||
Short-term borrowings | 1,279,073 | 20,836 | 1.61 | 3,288 | 77 | 2.33 | |||||||||||||
Long-term borrowings | 1,592,915 | 51,236 | 3.19 | 1,412,186 | 43,067 | 3.03 | |||||||||||||
Total borrowings | 2,871,988 | 72,072 | 2.49 | 1,415,474 | 43,144 | 3.02 | |||||||||||||
Total interest-bearing liabilities | 22,811,995 | 298,229 | 1.30 | 15,926,429 | 150,834 | 0.94 | |||||||||||||
Total deposits and borrowings | 28,434,087 | 298,229 | 1.05 | 19,769,923 | 150,834 | 0.76 | |||||||||||||
Accrued expenses and other liabilities | 1,177,805 | 761,723 | |||||||||||||||||
Total liabilities | 29,611,892 | 20,531,646 | |||||||||||||||||
Total TCF Financial Corporation shareholders' equity | 3,889,204 | 2,506,179 | |||||||||||||||||
Non-controlling interest in subsidiaries | 25,834 | 24,323 | |||||||||||||||||
Total equity | 3,915,038 | 2,530,502 | |||||||||||||||||
Total liabilities and equity | $ | 33,526,930 | $ | 23,062,148 | |||||||||||||||
Net interest spread (FTE) | 4.12% | 4.63% | |||||||||||||||||
Net interest income (FTE) and net interest margin (FTE) | $ | 1,297,475 | 4.20% | $ | 1,016,864 | 4.69% | |||||||||||||
Reconciliation to Reported Net Interest Income | |||||||||||||||||||
Net interest income (FTE) | $ | 1,297,475 | $ | 1,016,864 | |||||||||||||||
Adjustments for taxable equivalent interest(1)(2) | |||||||||||||||||||
Loans | (5,348 | ) | (3,813 | ) | |||||||||||||||
Tax-exempt investment securities | (3,095 | ) | (4,556 | ) | |||||||||||||||
Total FTE adjustments | (8,443 | ) | (8,369 | ) | |||||||||||||||
Net interest income (GAAP) | $ | 1,289,032 | $ | 1,008,495 | |||||||||||||||
Net interest margin (GAAP) | 4.17 | % | 4.66 | % |
(1) | Interest and yields are presented on a fully tax-equivalent basis. |
(2) | The yield on tax-exempt loans and investment securities available-for-sale is computed on a tax-equivalent basis using a statutory federal income tax rate of 21%. |
(3) | Average balances of loans and leases include nonaccrual loans and leases and are presented net of unearned income. |
12
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
Consolidated Quarterly Average Balance Sheets (Unaudited) | |||||||||||||||||||||||||||||||||
Quarter Ended | Change From | ||||||||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, 2019 | Dec. 31, 2018 | |||||||||||||||||||||||||||
(Dollars in thousands) | 2019 | 2019 | 2019 | 2019 | 2018 | $ | % | $ | % | ||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank stocks | $ | 388,640 | $ | 230,767 | $ | 112,118 | $ | 105,135 | $ | 87,321 | $ | 157,873 | 68.4 | % | $ | 301,319 | N.M. | ||||||||||||||||
Investment securities held-to-maturity | 140,434 | 143,078 | 146,296 | 147,556 | 150,016 | (2,644 | ) | (1.8 | ) | (9,582 | ) | (6.4 | )% | ||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||||||||||||
Taxable | 4,960,520 | 4,232,878 | 2,711,984 | 2,121,196 | 1,779,654 | 727,642 | 17.2 | 3,180,866 | 178.7 | ||||||||||||||||||||||||
Tax-exempt | 778,994 | 643,576 | 222,534 | 516,995 | 788,806 | 135,418 | 21.0 | (9,812 | ) | (1.2 | ) | ||||||||||||||||||||||
Loans and leases held-for-sale | 1,121,326 | 118,482 | 40,835 | 55,204 | 86,169 | 1,002,844 | N.M. | 1,035,157 | N.M. | ||||||||||||||||||||||||
Loans and leases(1) : | |||||||||||||||||||||||||||||||||
Commercial and industrial | 10,955,937 | 9,290,978 | 6,683,060 | 6,495,163 | 6,116,369 | 1,664,959 | 17.9 | 4,839,568 | 79.1 | ||||||||||||||||||||||||
Commercial real estate | 9,057,834 | 6,964,643 | 3,069,969 | 2,917,631 | 2,795,403 | 2,093,191 | 30.1 | 6,262,431 | N.M. | ||||||||||||||||||||||||
Lease financing | 2,616,360 | 2,570,567 | 2,565,175 | 2,527,346 | 2,479,045 | 45,793 | 1.8 | 137,315 | 5.5 | ||||||||||||||||||||||||
Residential mortgage | 6,023,647 | 4,853,627 | 2,337,818 | 2,345,881 | 1,957,323 | 1,170,020 | 24.1 | 4,066,324 | N.M. | ||||||||||||||||||||||||
Consumer installment | 1,546,952 | 2,389,830 | 1,586,633 | 1,852,813 | 2,134,568 | (842,878 | ) | (35.3 | ) | (587,616 | ) | (27.5 | ) | ||||||||||||||||||||
Home equity | 3,604,153 | 3,433,830 | 2,997,050 | 3,048,128 | 3,072,697 | 170,323 | 5.0 | 531,456 | 17.3 | ||||||||||||||||||||||||
Total loans and leases(1) | 33,804,883 | 29,503,475 | 19,239,705 | 19,186,962 | 18,555,405 | 4,301,408 | 14.6 | 15,249,478 | 82.2 | ||||||||||||||||||||||||
Interest-bearing deposits with banks and other | 656,555 | 933,014 | 280,075 | 261,556 | 243,038 | (276,459 | ) | (29.6 | ) | 413,517 | 170.1 | ||||||||||||||||||||||
Total interest-earning assets | 41,851,352 | 35,805,270 | 22,753,547 | 22,394,604 | 21,690,409 | 6,046,082 | 16.9 | 20,160,943 | 92.9 | ||||||||||||||||||||||||
Other assets | 4,268,162 | 3,289,096 | 1,730,275 | 1,712,337 | 1,463,844 | 979,066 | 29.8 | 2,804,318 | 191.6 | ||||||||||||||||||||||||
Total assets | $ | 46,119,514 | $ | 39,094,366 | $ | 24,483,822 | $ | 24,106,941 | $ | 23,154,253 | $ | 7,025,148 | 18.0 | $ | 22,965,261 | 99.2 | |||||||||||||||||
LIABILITIES AND EQUITY: | |||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | 7,968,769 | $ | 6,564,195 | $ | 3,980,811 | $ | 3,919,746 | $ | 3,873,023 | $ | 1,404,574 | 21.4 | $ | 4,095,746 | 105.8 | % | ||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||||||
Checking | 5,891,566 | 4,805,843 | 2,479,814 | 2,457,767 | 2,403,370 | 1,085,723 | 22.6 | 3,488,196 | 145.1 | ||||||||||||||||||||||||
Savings | 8,404,460 | 7,676,165 | 6,452,510 | 6,253,992 | 5,922,724 | 728,295 | 9.5 | 2,481,736 | 41.9 | ||||||||||||||||||||||||
Money market | 4,463,476 | 3,490,922 | 1,430,556 | 1,490,631 | 1,449,531 | 972,554 | 27.9 | 3,013,945 | N.M. | ||||||||||||||||||||||||
Certificates of deposit | 7,825,573 | 7,320,720 | 4,527,822 | 4,622,120 | 4,818,211 | 504,853 | 6.9 | 3,007,362 | 62.4 | ||||||||||||||||||||||||
Total interest-bearing deposits | 26,585,075 | 23,293,650 | 14,890,702 | 14,824,510 | 14,593,836 | 3,291,425 | 14.1 | 11,991,239 | 82.2 | ||||||||||||||||||||||||
Total deposits | 34,553,844 | 29,857,845 | 18,871,513 | 18,744,256 | 18,466,859 | 4,695,999 | 15.7 | 16,086,985 | 87.1 | ||||||||||||||||||||||||
Borrowings: | |||||||||||||||||||||||||||||||||
Short-term borrowings | 2,585,682 | 1,884,228 | 321,043 | 293,499 | 2,738 | 701,454 | 37.2 | 2,582,944 | N.M. | ||||||||||||||||||||||||
Long-term borrowings | 1,739,852 | 1,472,150 | 1,657,527 | 1,500,832 | 1,344,228 | 267,702 | 18.2 | 395,624 | 29.4 | ||||||||||||||||||||||||
Total borrowings | 4,325,534 | 3,356,378 | 1,978,570 | 1,794,331 | 1,346,966 | 969,156 | 28.9 | 2,978,568 | N.M. | ||||||||||||||||||||||||
Total interest-bearing liabilities | 30,910,609 | 26,650,028 | 16,869,272 | 16,618,841 | 15,940,802 | 4,260,581 | 16.0 | 14,969,807 | 93.9 | ||||||||||||||||||||||||
Total deposits and borrowings | 38,879,378 | 33,214,223 | 20,850,083 | 20,538,587 | 19,813,825 | 5,665,155 | 17.1 | 19,065,553 | 96.2 | ||||||||||||||||||||||||
Accrued expenses and other liabilities | 1,549,017 | 1,197,014 | 969,723 | 989,104 | 822,558 | 352,003 | 29.4 | 726,459 | 88.3 | ||||||||||||||||||||||||
Total liabilities | 40,428,395 | 34,411,237 | 21,819,806 | 21,527,691 | 20,636,383 | 6,017,158 | 17.5 | 19,792,012 | 95.9 | ||||||||||||||||||||||||
Total TCF Financial Corporation shareholders' equity | 5,667,436 | 4,657,613 | 2,634,386 | 2,554,729 | 2,495,952 | 1,009,823 | 21.7 | 3,171,484 | 127.1 | ||||||||||||||||||||||||
Non-controlling interest in subsidiaries | 23,683 | 25,516 | 29,630 | 24,521 | 21,918 | (1,833 | ) | (7.2 | ) | 1,765 | 8.1 | ||||||||||||||||||||||
Total equity | 5,691,119 | 4,683,129 | 2,664,016 | 2,579,250 | 2,517,870 | 1,007,990 | 21.5 | 3,173,249 | 126.0 | ||||||||||||||||||||||||
Total liabilities and equity | $ | 46,119,514 | $ | 39,094,366 | $ | 24,483,822 | $ | 24,106,941 | $ | 23,154,253 | $ | 7,025,148 | 18.0 | $ | 22,965,261 | 99.2 |
N.M. Not Meaningful
(1) | Average balances of loans and leases include nonaccrual loans and leases and are presented net of unearned income. |
13
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
Consolidated Quarterly Yields and Rates(1)(2) (Unaudited) | |||||||||||||||||||
Quarter Ended | Change From | ||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Dec. 31, | |||||||||||||
2019 | 2019 | 2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||||
ASSETS: | |||||||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank stocks | 3.24 | % | 1.39 | % | 3.91 | % | 3.70 | % | 4.19 | % | 185 | bps | (95) | bps | |||||
Investment securities held-to-maturity | 2.53 | 1.68 | 2.53 | 1.45 | 2.58 | 85 | (5) | ||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||
Taxable | 2.85 | 2.88 | 3.11 | 3.04 | 2.91 | (3) | (6) | ||||||||||||
Tax-exempt(3) | 2.84 | 2.66 | 2.75 | 2.63 | 2.66 | 18 | 18 | ||||||||||||
Loans and leases held-for-sale | 5.58 | 4.74 | 5.88 | 6.05 | 6.48 | 84 | (90) | ||||||||||||
Loans and leases(3) | |||||||||||||||||||
Commercial and industrial | 5.63 | 6.25 | 6.56 | 6.63 | 6.36 | (62) | (73) | ||||||||||||
Commercial real estate | 5.38 | 5.45 | 5.05 | 5.17 | 5.02 | (7) | 36 | ||||||||||||
Lease financing | 5.11 | 5.11 | 5.13 | 5.13 | 5.32 | 0 | (21) | ||||||||||||
Residential mortgage | 4.05 | 4.23 | 4.91 | 5.07 | 5.27 | (18) | (122) | ||||||||||||
Consumer installment | 4.97 | 5.73 | 5.63 | 5.58 | 5.62 | (76) | (65) | ||||||||||||
Home equity | 5.93 | 6.49 | 6.90 | 6.98 | 6.86 | (56) | (93) | ||||||||||||
Total loans and leases(3) | 5.24 | 5.62 | 5.91 | 5.97 | 5.90 | (38) | (66) | ||||||||||||
Interest-bearing deposits with banks and other | 2.07 | 2.44 | 3.64 | 3.87 | 3.79 | (37) | (172) | ||||||||||||
Total interest-earning assets | 4.85 | 5.11 | 5.48 | 5.55 | 5.49 | (26) | (64) | ||||||||||||
LIABILITIES: | |||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||
Checking | 0.51 | 0.46 | 0.07 | 0.06 | 0.04 | 5 | 47 | ||||||||||||
Savings | 0.71 | 0.73 | 0.77 | 0.69 | 0.54 | (2) | 17 | ||||||||||||
Money market | 1.38 | 1.48 | 1.29 | 1.21 | 0.99 | (10) | 39 | ||||||||||||
Certificates of deposit | 1.97 | 2.07 | 2.06 | 1.94 | 1.77 | (10) | 20 | ||||||||||||
Total interest-bearing deposits | 1.15 | 1.21 | 1.09 | 1.03 | 0.91 | (6) | 24 | ||||||||||||
Total deposits | 0.88 | 0.94 | 0.86 | 0.81 | 0.72 | (6) | 16 | ||||||||||||
Borrowings: | |||||||||||||||||||
Short-term borrowings | 1.73 | 1.11 | 2.63 | 2.67 | 2.74 | 62 | (101) | ||||||||||||
Long-term borrowings | 2.87 | 3.17 | 3.34 | 3.44 | 3.31 | (30) | (44) | ||||||||||||
Total borrowings | 2.19 | 2.01 | 3.23 | 3.31 | 3.31 | 18 | (112) | ||||||||||||
Total interest-bearing liabilities | 1.29 | 1.31 | 1.34 | 1.28 | 1.11 | (2) | 18 | ||||||||||||
Net interest margin (FTE) | 3.89 | 4.14 | 4.49 | 4.61 | 4.67 | (25) | (78) |
(1) | Annualized. |
(2) | Yields are presented on a fully tax-equivalent basis. |
(3) | The yield on tax-exempt loans and investment securities available-for-sale is computed on a tax-equivalent basis using a statutory federal income tax rate of 21%. |
14
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||
Composition of Loans (Unaudited) | |||||||||||||||||||||||||||
Quarter Ended | Change From | ||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, 2019 | Dec. 31, 2018 | |||||||||||||||||||||
(Dollars in thousands) | 2019 | 2019 | 2019 | 2019 | 2018 | $ | % | $ | |||||||||||||||||||
Commercial and industrial | $ | 11,309,420 | $ | 10,810,534 | $ | 6,572,393 | $ | 6,790,956 | $ | 6,220,632 | $ | 498,886 | 4.6% | $ | 5,088,788 | ||||||||||||
Commercial real estate | 9,267,052 | 8,876,779 | 3,262,487 | 2,965,796 | 2,908,313 | 390,273 | 4.4 | 6,358,739 | |||||||||||||||||||
Lease financing | 2,699,869 | 2,594,373 | 2,582,613 | 2,551,344 | 2,530,163 | 105,496 | 4.1 | 169,706 | |||||||||||||||||||
Residential mortgage | 6,179,805 | 6,057,404 | 2,368,411 | 2,376,878 | 2,335,835 | 122,401 | 2.0 | 3,843,970 | |||||||||||||||||||
Consumer installment | 1,542,411 | 1,562,252 | 1,474,480 | 1,722,557 | 2,003,572 | (19,841 | ) | (1.3) | (461,161 | ) | |||||||||||||||||
Home equity | 3,498,907 | 3,609,410 | 2,924,753 | 2,976,679 | 3,074,505 | (110,503 | ) | (3.1) | 424,402 | ||||||||||||||||||
Total | $ | 34,497,464 | $ | 33,510,752 | $ | 19,185,137 | $ | 19,384,210 | $ | 19,073,020 | $ | 986,712 | 2.9 | $ | 15,424,444 |
Composition of Deposits (Unaudited) | |||||||||||||||||||||||||||
Quarter Ended | Change From | ||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, 2019 | Dec. 31, 2018 | |||||||||||||||||||||
(Dollars in thousands) | 2019 | 2019 | 2019 | 2019 | 2018 | $ | % | $ | |||||||||||||||||||
Noninterest-bearing deposits | $ | 7,970,590 | $ | 7,979,900 | $ | 4,062,912 | $ | 4,104,652 | $ | 3,936,155 | $ | (9,310 | ) | (0.1)% | $ | 4,034,435 | |||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||
Checking | 5,966,178 | 6,266,740 | 2,498,042 | 2,532,688 | 2,459,617 | (300,562 | ) | (4.8) | 3,506,561 | ||||||||||||||||||
Savings | 8,506,058 | 8,347,541 | 6,503,102 | 6,426,465 | 6,107,812 | 158,517 | 1.9 | 2,398,246 | |||||||||||||||||||
Money market | 4,570,081 | 4,305,921 | 1,443,004 | 1,468,308 | 1,609,422 | 264,160 | 6.1 | 2,960,659 | |||||||||||||||||||
Certificates of deposit | 7,455,556 | 8,385,972 | 4,605,327 | 4,491,998 | 4,790,680 | (930,416 | ) | (11.1) | 2,664,876 | ||||||||||||||||||
Total interest-bearing deposits | 26,497,873 | 27,306,174 | 15,049,475 | 14,919,459 | 14,967,531 | (808,301 | ) | (3.0) | 11,530,342 | ||||||||||||||||||
Total deposits | $ | 34,468,463 | $ | 35,286,074 | $ | 19,112,387 | $ | 19,024,111 | $ | 18,903,686 | $ | (817,611 | ) | (2.3) | $ | 15,564,777 |
Summary of Credit Quality Data | |||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses (Unaudited) | |||||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | |||||||||||||||||||||||||
2019 | 2019 | 2019 | 2019 | 2018 | |||||||||||||||||||||||||
(Dollars in thousands) | Balance | % of Portfolio | Balance | % of Portfolio | Balance | % of Portfolio | Balance | % of Portfolio | Balance | % of Portfolio | |||||||||||||||||||
Commercial and industrial | $ | 42,430 | 0.38% | $ | 39,974 | 0.37% | $ | 38,605 | 0.59% | $ | 38,639 | 0.57% | $ | 41,103 | 0.66% | ||||||||||||||
Commercial real estate | 27,308 | 0.29 | 24,090 | 0.27 | 22,747 | 0.70 | 20,659 | 0.70 | 22,877 | 0.79 | |||||||||||||||||||
Lease financing | 14,742 | 0.55 | 14,367 | 0.55 | 14,440 | 0.56 | 14,377 | 0.56 | 13,449 | 0.53 | |||||||||||||||||||
Residential mortgage | 8,099 | 0.13 | 19,816 | 0.33 | 21,102 | 0.89 | 20,281 | 0.85 | 21,436 | 0.92 | |||||||||||||||||||
Consumer installment | 2,678 | 0.17 | 1,859 | 0.12 | 26,731 | 1.81 | 30,477 | 1.77 | 35,151 | 1.75 | |||||||||||||||||||
Home equity | 17,795 | 0.51 | 21,112 | 0.58 | 22,878 | 0.78 | 23,539 | 0.79 | 23,430 | 0.76 | |||||||||||||||||||
Total | $ | 113,052 | 0.33% | $ | 121,218 | 0.36% | $ | 146,503 | 0.76% | $ | 147,972 | 0.76% | $ | 157,446 | 0.83% |
15
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||
Summary of Credit Quality Data (Unaudited), Continued | |||||||||||||||||||||||||||
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, | |||||||||||||||||||||
(Dollars in thousands) | 2019 | 2019 | 2019 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Balance, beginning of period | $ | 121,218 | $ | 146,503 | $ | 147,972 | $ | 157,446 | $ | 160,621 | $ | (25,285 | ) | $ | (39,403 | ) | |||||||||||
Charge-offs | (16,891 | ) | (35,547 | ) | (21,066 | ) | (24,431 | ) | (27,227 | ) | 18,656 | 10,336 | |||||||||||||||
Recoveries | 10,654 | 6,969 | 6,984 | 5,777 | 5,913 | 3,685 | 4,741 | ||||||||||||||||||||
Net (charge-offs) recoveries | (6,237 | ) | (28,578 | ) | (14,082 | ) | (18,654 | ) | (21,314 | ) | 22,341 | 15,077 | |||||||||||||||
Provision for credit losses | 14,403 | 27,188 | 13,569 | 10,122 | 18,894 | (12,785 | ) | (4,491 | ) | ||||||||||||||||||
Other(1) | (16,332 | ) | (23,895 | ) | (956 | ) | (942 | ) | (755 | ) | 7,563 | (15,577 | ) | ||||||||||||||
Balance, end of period | $ | 113,052 | $ | 121,218 | $ | 146,503 | $ | 147,972 | $ | 157,446 | $ | (8,166 | ) | $ | (44,394 | ) |
(1) | Primarily includes the transfer of the allowance for loan and lease losses to loans and leases held-for-sale. |
Net Charge-offs | ||||||||||||||||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | ||||||||||||||||||||||||||||||
2019 | 2019 | 2019 | 2019 | 2018 | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Balance | Rate(1) | Balance | Rate(1) | Balance | Rate(1) | Balance | Rate(1) | Balance | Rate(1) | ||||||||||||||||||||||||
Commercial and industrial | $ | (5,736 | ) | 0.21 | % | $ | (17,631 | ) | 0.76 | % | $ | (5,820 | ) | 0.35 | % | $ | (5,259 | ) | 0.32 | % | $ | (9,678 | ) | 0.63 | % | |||||||||
Commercial real estate | (7 | ) | — | 13 | — | 9 | — | 5 | — | 150 | (0.02 | ) | ||||||||||||||||||||||
Lease financing | (1,749 | ) | 0.27 | (2,192 | ) | 0.34 | (966 | ) | 0.15 | (1,391 | ) | 0.22 | (574 | ) | 0.09 | |||||||||||||||||||
Residential mortgage | 1,552 | (0.10 | ) | (189 | ) | 0.02 | (80 | ) | 0.01 | (468 | ) | 0.08 | (109 | ) | 0.02 | |||||||||||||||||||
Consumer installment | (2,577 | ) | 0.67 | (8,984 | ) | 1.50 | (6,990 | ) | 1.76 | (11,561 | ) | 2.50 | (11,299 | ) | 2.12 | |||||||||||||||||||
Home equity | 2,280 | (0.25 | ) | 405 | (0.05 | ) | (235 | ) | 0.03 | 20 | — | 196 | (0.03 | ) | ||||||||||||||||||||
Total | $ | (6,237 | ) | 0.07 | % | $ | (28,578 | ) | 0.39 | % | $ | (14,082 | ) | 0.29 | % | $ | (18,654 | ) | 0.39 | % | $ | (21,314 | ) | 0.46 | % |
(1) Annualized net charge-off rate based on average loans and leases.
Over 90-Day Delinquencies as a Percentage of Portfolio(1) | |||||||||||||||||||||
Change From | |||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Dec. 31, | |||||||||||||||
2019 | 2019 | 2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||
Commercial and industrial | — | % | 0.02 | % | — | % | — | % | 0.01 | % | (2 | ) | bps | (1 | ) | bps | |||||
Commercial real estate | 0.02 | 0.09 | — | — | — | (7 | ) | 2 | |||||||||||||
Lease financing | 0.07 | 0.09 | 0.12 | 0.10 | 0.07 | (2 | ) | — | |||||||||||||
Residential mortgage | 0.01 | 0.01 | 0.05 | 0.07 | 0.06 | — | (5 | ) | |||||||||||||
Consumer installment | 0.01 | — | 0.14 | 0.14 | 0.17 | 1 | (16 | ) | |||||||||||||
Home equity | — | — | — | — | — | — | — | ||||||||||||||
Subtotal | 0.01 | 0.04 | 0.03 | 0.04 | 0.04 | (3 | ) | (3 | ) | ||||||||||||
Portfolios acquired with deteriorated credit quality | 10.43 | 5.47 | 18.92 | 6.75 | 4.65 | 496 | 578 | ||||||||||||||
Total delinquencies | 0.09 | % | 0.09 | % | 0.04 | % | 0.04 | % | 0.04 | % | — | 5 |
(1) | Excludes nonaccrual loans and leases. |
16
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||
Summary of Credit Quality Data (Unaudited), Continued | ||||||||||||||||||||||||||||
Nonperforming Assets | ||||||||||||||||||||||||||||
Change From | ||||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Dec. 31, | ||||||||||||||||||||||
(Dollars in thousands) | 2019 | 2019 | 2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||
Nonaccrual loans and leases: | ||||||||||||||||||||||||||||
Commercial and industrial | $ | 53,812 | $ | 55,039 | $ | 18,483 | $ | 17,150 | $ | 26,061 | $ | (1,227 | ) | $ | 27,751 | |||||||||||||
Commercial real estate | 29,735 | 26,518 | 545 | 607 | 4,518 | 3,217 | 25,217 | |||||||||||||||||||||
Lease financing | 10,957 | 11,503 | 12,886 | 10,976 | 7,993 | (546 | ) | 2,964 | ||||||||||||||||||||
Residential mortgage | 38,577 | 48,816 | 34,760 | 35,227 | 33,111 | (10,239 | ) | 5,466 | ||||||||||||||||||||
Consumer installment | 714 | 636 | 8,633 | 9,034 | 8,581 | 78 | (7,867 | ) | ||||||||||||||||||||
Home equity | 35,863 | 39,296 | 32,686 | 30,291 | 25,654 | (3,433 | ) | 10,209 | ||||||||||||||||||||
Total nonaccrual loans and leases | $ | 169,658 | $ | 181,808 | $ | 107,993 | $ | 103,285 | $ | 105,918 | $ | (12,150 | ) | $ | 63,740 | |||||||||||||
Other real estate owned | 34,256 | 27,638 | 11,964 | 18,361 | 17,403 | 6,618 | 16,853 | |||||||||||||||||||||
Total nonperforming assets | 203,914 | 209,446 | 119,957 | 121,646 | 123,321 | (5,532 | ) | 80,593 | ||||||||||||||||||||
Nonaccrual loans and leases as a percentage of total loans and leases | 0.49 | % | 0.54 | % | 0.56 | % | 0.53 | % | 0.56 | % | (5 | ) | bps | (7 | ) | bps | ||||||||||||
Allowance for loan and lease losses as a percentage of nonaccrual loans and leases | 66.64 | 66.67 | 135.66 | 143.27 | 148.65 | (3 | ) | (8,201 | ) | |||||||||||||||||||
Nonperforming assets as a percentage of total loans and leases and other real estate owned | 0.59 | 0.62 | 0.62 | 0.63 | 0.65 | (3 | ) | (6 | ) |
Consolidated Capital Information (Unaudited) | ||||||||||||||||||||||||
Change From | ||||||||||||||||||||||||
(Dollars in thousands, except per share data) | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Dec. 31, | |||||||||||||||||
2019 | 2019 | 2019 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||
Dividends declared per common share | $ | 0.35 | $ | 0.35 | $ | 0.30 | $ | 0.30 | $ | 0.30 | 0.0 | % | 16.7 | % | ||||||||||
Book value per common share | 36.20 | 35.82 | 30.43 | 29.38 | 28.44 | 1.1 | 27.3 | |||||||||||||||||
Tangible book value per common share(1) | 26.60 | 26.18 | 28.33 | 27.28 | 26.33 | 1.6 | 1.0 | |||||||||||||||||
Common equity to assets | 11.87 | % | 12.04 | % | 10.22 | % | 10.02 | % | 9.99 | % | (17) | bps | 188 | bps | ||||||||||
Tangible common equity to tangible assets(1) | 9.01 | 9.09 | 9.58 | 9.37 | 9.32 | (8) | (31) | |||||||||||||||||
Regulatory Capital:(2) | ||||||||||||||||||||||||
Common equity Tier 1 capital | $ | 4,050,826 | $ | 4,009,214 | $ | 2,305,706 | $ | 2,266,244 | $ | 2,224,183 | 1.0 | % | 82.1 | % | ||||||||||
Tier 1 capital | 4,236,643 | 4,197,706 | 2,495,178 | 2,459,132 | 2,408,393 | 0.9 | 75.9 | |||||||||||||||||
Total capital | 4,681,533 | 4,652,708 | 2,811,347 | 2,792,419 | 2,750,581 | 0.6 | 70.2 | |||||||||||||||||
Common equity Tier 1 capital ratio | 10.99 | % | 10.88 | % | 10.99 | % | 10.79 | % | 10.82 | % | 11 | bps | 17 | bps | ||||||||||
Tier 1 risk-based capital ratio | 11.50 | 11.40 | 11.90 | 11.71 | 11.72 | 10 | (22) | |||||||||||||||||
Total risk-based capital ratio | 12.71 | 12.63 | 13.41 | 13.30 | 13.38 | 8 | (67) | |||||||||||||||||
Tier 1 leverage ratio | 9.49 | 11.16 | 10.27 | 10.26 | 10.44 | (167) | (95) |
(1) | See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables. |
(2) | December 31, 2019 amounts are preliminary pending completion and filing of the Corporation's regulatory reports. |
17
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) | ||||||||||||||||||||
Computation of adjusted diluted earnings per common share: | ||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | ||||||||||||||||
(Dollars in thousands, except per share data) | 2019 | 2019 | 2019 | 2019 | 2018 | |||||||||||||||
Net income available to common shareholders | $ | 109,905 | $ | 19,654 | $ | 87,933 | $ | 68,001 | $ | 83,158 | ||||||||||
Earnings allocated to participating securities | — | — | 17 | 13 | 12 | |||||||||||||||
Earnings allocated to common stock | (a) | 109,905 | 19,654 | 87,950 | 68,014 | 83,170 | ||||||||||||||
Merger-related expenses | 47,025 | 111,259 | 4,226 | 9,458 | — | |||||||||||||||
Notable items: | ||||||||||||||||||||
Sale of legacy TCF auto finance portfolio(1) | 12,864 | 19,264 | — | — | — | |||||||||||||||
Termination of interest rate swaps(2) | — | 17,302 | — | — | — | |||||||||||||||
Gain on sale of certain investment securities(3) | — | (5,869 | ) | — | — | — | ||||||||||||||
Write-down of company-owned vacant land parcels and branch exit costs(4) | 3,494 | 5,890 | — | — | — | |||||||||||||||
Pension fair valuation adjustment(4) | 6,341 | — | — | — | — | |||||||||||||||
Loan servicing rights (recovery) impairment(2) | (638 | ) | 4,520 | — | — | — | ||||||||||||||
Total notable items | 22,061 | 41,107 | — | — | — | |||||||||||||||
Related income tax expense, net of benefits(5) | (19,904 | ) | (46,213 | ) | (1,003 | ) | (2,252 | ) | — | |||||||||||
Total adjustments, net of tax | 49,182 | 106,153 | 3,223 | 7,206 | — | |||||||||||||||
Adjusted earnings allocated to common stock | (b) | $ | 159,087 | $ | 125,807 | $ | 91,173 | $ | 75,220 | $ | 83,170 | |||||||||
Weighted-average common shares outstanding used in diluted earnings per common share calculation(6) | (c) | 152,658,766 | 128,754,588 | 82,298,920 | 82,245,577 | 82,989,508 | ||||||||||||||
Diluted earnings per common share | (a)/(c) | $ | 0.72 | $ | 0.15 | $ | 1.07 | $ | 0.83 | $ | 1.00 | |||||||||
Adjusted diluted earnings per common share | (b)/(c) | 1.04 | 0.98 | 1.11 | 0.91 | 1.00 | ||||||||||||||
Net income attributable to TCF | $ | 112,399 | $ | 22,148 | $ | 90,427 | $ | 70,494 | $ | 85,652 | ||||||||||
Total adjustments, net of tax | 49,182 | 106,153 | 3,223 | 7,206 | — | |||||||||||||||
Adjusted net income attributable to TCF | $ | 161,581 | $ | 128,301 | $ | 93,650 | $ | 77,700 | $ | 85,652 |
(1) | Included within Net gains (losses) on sales of loans and leases ($8.2 million), other noninterest expense ($2.2 million), occupancy and equipment ($1.5 million) and compensation and employee benefits ($0.9 million). |
(2) | Included within Other noninterest income. |
(3) | Included within Net gains on investment securities. |
(4) | Included within Other noninterest expense. |
(5) | Included within Income tax expense (benefit). |
(6) | Assumes conversion of common shares, as applicable. |
Computation of adjusted net interest income and margin: | |||||||||||||||||||
Quarter Ended | |||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | |||||||||||||||
(Dollars in thousands) | 2019 | 2019 | 2019 | 2019 | 2018 | ||||||||||||||
Net Interest Income | $ | 408,753 | $ | 371,793 | $ | 254,057 | $ | 254,429 | $ | 253,153 | |||||||||
Purchase accounting accretion and amortization | (30,523 | ) | (28,411 | ) | — | — | — | ||||||||||||
Adjusted net interest income, excluding purchase accounting accretion and amortization | $ | 378,230 | $ | 343,382 | $ | 254,057 | $ | 254,429 | $ | 253,153 | |||||||||
Net interest margin (FTE) | 3.89 | % | 4.14 | % | 4.49 | % | 4.61 | % | 4.67 | % | |||||||||
Purchase accounting accretion and amortization impact | (0.29 | ) | (0.31 | ) | — | — | — | ||||||||||||
Adjusted net interest margin, excluding purchase accounting accretion and amortization (FTE) | 3.60 | % | 3.83 | % | 4.49 | % | 4.61 | % | 4.67 | % |
18
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited), Continued | ||||||||||||||||||||
Computation of adjusted return on average assets, common equity, average tangible common equity and average tangible common equity: | ||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | ||||||||||||||||
(Dollars in thousands) | 2019 | 2019 | 2019 | 2019 | 2018 | |||||||||||||||
Adjusted net income after tax expense: | ||||||||||||||||||||
Income after tax expense | (a) | $ | 114,456 | $ | 24,978 | $ | 94,043 | $ | 73,449 | $ | 88,156 | |||||||||
Merger-related expenses | 47,025 | 111,259 | 4,226 | 9,458 | — | |||||||||||||||
Notable items | 22,061 | 41,107 | — | — | — | |||||||||||||||
Related income tax expense, net of tax benefits | (19,904 | ) | (46,213 | ) | (1,003 | ) | (2,252 | ) | — | |||||||||||
Adjusted net income after tax expense for ROAA calculation | (b) | 163,638 | 131,131 | 97,266 | 80,655 | 88,156 | ||||||||||||||
Net income available to common shareholders | (c) | 109,905 | 19,654 | 87,933 | 68,001 | 83,158 | ||||||||||||||
Other intangibles amortization | 5,505 | 4,544 | 798 | 812 | 845 | |||||||||||||||
Related income tax expense | (1,284 | ) | (1,085 | ) | (189 | ) | (193 | ) | (198 | ) | ||||||||||
Net income available to common shareholders used in ROATCE calculation | (d) | 114,126 | 23,113 | 88,542 | 68,620 | 83,805 | ||||||||||||||
Adjusted net income available to common shareholders: | ||||||||||||||||||||
Net income available to common shareholders | 109,905 | 19,654 | 87,933 | 68,001 | 83,158 | |||||||||||||||
Notable items | 22,061 | 41,107 | — | — | — | |||||||||||||||
Merger-related expenses | 47,025 | 111,259 | 4,226 | 9,458 | — | |||||||||||||||
Related income tax expense, net of tax benefits | (19,904 | ) | (46,213 | ) | (1,003 | ) | (2,252 | ) | — | |||||||||||
Net income available to common shareholders used in adjusted ROACE calculation | (e) | 159,087 | 125,807 | 91,156 | 75,207 | 83,158 | ||||||||||||||
Other intangibles amortization | 5,505 | 4,544 | 798 | 812 | 845 | |||||||||||||||
Related income tax expense | (1,284 | ) | (1,085 | ) | (189 | ) | (193 | ) | (198 | ) | ||||||||||
Net income available to common shareholders used in adjusted ROATCE calculation | (f) | 163,308 | 129,266 | 91,765 | 75,826 | 83,805 | ||||||||||||||
Average balances: | ||||||||||||||||||||
Average assets | (g) | 46,119,514 | 39,094,366 | 24,483,822 | 24,106,941 | 23,154,253 | ||||||||||||||
Total equity | 5,691,119 | 4,683,129 | 2,664,016 | 2,579,250 | 2,517,870 | |||||||||||||||
Non-controlling interest in subsidiaries | (23,683 | ) | (25,516 | ) | (29,630 | ) | (24,521 | ) | (21,918 | ) | ||||||||||
Total TCF Financial Corporation shareholders' equity | 5,667,436 | 4,657,613 | 2,634,386 | 2,554,729 | 2,495,952 | |||||||||||||||
Preferred stock | (169,302 | ) | (169,302 | ) | (169,302 | ) | (169,302 | ) | (169,302 | ) | ||||||||||
Average total common shareholders' equity used in ROACE calculation | (h) | 5,498,134 | 4,488,311 | 2,465,084 | 2,385,427 | 2,326,650 | ||||||||||||||
Goodwill, net | (1,266,166 | ) | (890,155 | ) | (154,757 | ) | (154,757 | ) | (154,757 | ) | ||||||||||
Other intangibles, net | (211,294 | ) | (142,925 | ) | (19,270 | ) | (20,080 | ) | (20,907 | ) | ||||||||||
Average tangible common shareholders' equity used in ROATCE calculation | (i) | $ | 4,020,674 | $ | 3,455,231 | $ | 2,291,057 | $ | 2,210,590 | $ | 2,150,986 | |||||||||
ROAA(1) | (a)/(g) | 0.99 | % | 0.26 | % | 1.54 | % | 1.22 | % | 1.52 | % | |||||||||
Adjusted ROAA(1) | (b)/(g) | 1.42 | 1.34 | 1.59 | 1.34 | 1.52 | ||||||||||||||
ROACE(1) | (c)/(h) | 8.00 | 1.75 | 14.27 | 11.40 | 14.30 | ||||||||||||||
Adjusted ROACE(1) | (e)/(h) | 11.57 | 11.21 | 14.79 | 12.61 | 14.30 | ||||||||||||||
ROATCE(1) | (d)/(i) | 11.35 | 2.68 | 15.46 | 12.42 | 15.58 | ||||||||||||||
Adjusted ROATCE(1) | (f)/(i) | 16.25 | 14.96 | 16.02 | 13.72 | 15.58 |
(1) | Annualized. |
19
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited), Continued | ||||||||||||||||||||
Computation of adjusted efficiency ratio, noninterest income and noninterest expense: | ||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | ||||||||||||||||
(Dollars in thousands) | 2019 | 2019 | 2019 | 2019 | 2018 | |||||||||||||||
Noninterest expense | (a) | $ | 416,571 | $ | 425,620 | $ | 236,849 | $ | 253,075 | $ | 249,958 | |||||||||
Merger-related expenses | (47,025 | ) | (111,259 | ) | (4,226 | ) | (9,458 | ) | — | |||||||||||
Write-down of company-owned vacant land parcels and branch exit costs | (3,494 | ) | (5,890 | ) | — | — | — | |||||||||||||
Sale of Legacy TCF auto finance portfolio | (4,670 | ) | — | — | — | — | ||||||||||||||
Pension fair valuation adjustment | (6,341 | ) | — | — | — | — | ||||||||||||||
Adjusted noninterest expense | 355,041 | 308,471 | 232,623 | 243,617 | 249,958 | |||||||||||||||
Lease financing equipment depreciation | (18,629 | ) | (19,408 | ) | (19,133 | ) | (19,256 | ) | (19,085 | ) | ||||||||||
Amortization of intangibles | (5,505 | ) | (4,544 | ) | (798 | ) | (812 | ) | (845 | ) | ||||||||||
Impairment of historic income tax credits | (4,030 | ) | — | — | — | — | ||||||||||||||
Adjusted noninterest expense, efficiency ratio | (b) | 326,877 | 284,519 | 212,692 | 223,549 | 230,028 | ||||||||||||||
Net interest income | 408,753 | 371,793 | 254,057 | 254,429 | 253,153 | |||||||||||||||
Noninterest income | 158,052 | 94,258 | 109,718 | 103,504 | 123,868 | |||||||||||||||
Total revenue | (c) | 566,805 | 466,051 | 363,775 | 357,933 | 377,021 | ||||||||||||||
Noninterest income | 158,052 | 94,258 | 109,718 | 103,504 | 123,868 | |||||||||||||||
Sale of Legacy TCF auto finance portfolio | 8,194 | 19,264 | — | — | — | |||||||||||||||
Termination of interest rate swaps | — | 17,302 | — | — | — | |||||||||||||||
Gain on sales of certain investment securities | — | (5,869 | ) | — | — | — | ||||||||||||||
Loan servicing rights (recovery) impairment | (638 | ) | 4,520 | — | — | — | ||||||||||||||
Adjusted noninterest income | 165,608 | 129,475 | 109,718 | 103,504 | 123,868 | |||||||||||||||
Net interest income | 408,753 | 371,793 | 254,057 | 254,429 | 253,153 | |||||||||||||||
Net interest income FTE adjustment | 2,896 | 2,488 | 1,337 | 1,722 | 2,100 | |||||||||||||||
Adjusted net interest income | 411,649 | 374,281 | 255,394 | 256,151 | 255,253 | |||||||||||||||
Lease financing equipment depreciation | (18,629 | ) | (19,408 | ) | (19,133 | ) | (19,256 | ) | (19,085 | ) | ||||||||||
Adjusted total revenue, efficiency ratio | (d) | $ | 558,628 | $ | 484,348 | $ | 345,979 | $ | 340,399 | $ | 360,036 | |||||||||
Efficiency ratio | (a)/(c) | 73.49 | % | 91.32 | % | 65.11 | % | 70.70 | % | 66.30 | % | |||||||||
Adjusted efficiency ratio | (b)/(d) | 58.51 | 58.74 | 61.48 | 65.67 | 63.89 |
20
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited), Continued | ||||||||||||||||||||
Computation of tangible common equity to tangible assets and tangible book value per common share: | ||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | ||||||||||||||||
(Dollars in thousands, except per share data) | 2019 | 2019 | 2019 | 2019 | 2018 | |||||||||||||||
Total equity | $ | 5,727,241 | $ | 5,693,417 | $ | 2,710,518 | $ | 2,645,845 | $ | 2,556,260 | ||||||||||
Non-controlling interest in subsidiaries | (20,226 | ) | (23,313 | ) | (24,858 | ) | (29,452 | ) | (18,459 | ) | ||||||||||
Total TCF Financial Corporation shareholders' equity | 5,707,015 | 5,670,104 | 2,685,660 | 2,616,393 | 2,537,801 | |||||||||||||||
Preferred stock | (169,302 | ) | (169,302 | ) | (169,302 | ) | (169,302 | ) | (169,302 | ) | ||||||||||
Total common stockholders' equity | (a) | 5,537,713 | 5,500,802 | 2,516,358 | 2,447,091 | 2,368,499 | ||||||||||||||
Goodwill, net | (1,299,878 | ) | (1,265,111 | ) | (154,757 | ) | (154,757 | ) | (154,757 | ) | ||||||||||
Other intangibles, net | (168,368 | ) | (215,910 | ) | (18,885 | ) | (19,684 | ) | (20,496 | ) | ||||||||||
Tangible common shareholders' equity | (b) | $ | 4,069,467 | $ | 4,019,781 | $ | 2,342,716 | $ | 2,272,650 | $ | 2,193,246 | |||||||||
Total assets | (c) | $ | 46,651,553 | $ | 45,692,511 | $ | 24,626,830 | $ | 24,418,715 | $ | 23,699,612 | |||||||||
Goodwill, net | (1,299,878 | ) | (1,265,111 | ) | (154,757 | ) | (154,757 | ) | (154,757 | ) | ||||||||||
Other intangibles, net | (168,368 | ) | (215,910 | ) | (18,885 | ) | (19,684 | ) | (20,496 | ) | ||||||||||
Tangible assets | (d) | $ | 45,183,307 | $ | 44,211,490 | $ | 24,453,188 | $ | 24,244,274 | $ | 23,524,359 | |||||||||
Common stock shares outstanding | (e) | 152,965,571 | 153,571,381 | 82,703,469 | 83,303,581 | 83,289,382 | ||||||||||||||
Common equity to assets | (a) / (c) | 11.87 | % | 12.04 | % | 10.22 | % | 10.02 | % | 9.99 | % | |||||||||
Tangible common equity to tangible assets | (b) / (d) | 9.01 | 9.09 | 9.58 | 9.37 | 9.32 | ||||||||||||||
Book value per common share | (a) / (e) | $ | 36.20 | $ | 35.82 | $ | 30.43 | $ | 29.38 | $ | 28.44 | |||||||||
Tangible book value per common share | (b) / (e) | 26.60 | 26.18 | 28.33 | 27.28 | 26.33 |
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) | ||||
Computation of adjusted provision and net charge-offs: | ||||
Quarter Ended | ||||
Dec. 31, | ||||
(Dollars in thousands) | 2019 | |||
Provision | $ | 14,403 | ||
Provision benefit due to sale of the consumer nonaccrual and TDR loan sale | 4,694 | |||
Adjusted provision, excluding consumer nonaccrual and TDR loan sale | $ | 19,097 | ||
Net charge-offs | (a) | $ | (6,237 | ) |
Recovery related to the consumer nonaccrual and TDR loan sale | (b) | 4,694 | ||
Adjusted net charge-offs, excluding consumer nonaccrual and TDR loan sale | (c) | $ | (10,931 | ) |
Average loans and leases | (d) | $ | 33,804,883 | |
Net charge-off rate as a percentage of average loans and leases(1) | (a)/(d) | 0.07 | % | |
Impact of recovery to net charge-off ratio related to the consumer nonaccrual and TDR loan sale(1) | (b)/(d) | 0.06 | ||
Adjusted net charge-off ratio, excluding consumer nonaccrual and TDR loan sale(1) | (c)/(d) | 0.13 | % |
(1) | Annualized. |
21