TCF Utilizes Tax Benefits to Give Back to Its Team Members and Communities, Invest in Its Business and Drive Shareholder Value
TCF Financial Corporation TCF:
2018 ANNOUNCEMENTS
- Announced a 100 percent increase to the quarterly common stock dividend
- Announced the redemption of the Series B non-cumulative perpetual preferred stock on March 1, 2018
2017 OBSERVATIONS
- Revenue of $1.4 billion, up 4.5 percent from 2016
- Net interest margin of 4.54 percent, up 20 basis points from 2016
- Period-end loans and leases of $19.1 billion, up 7.1 percent from December 31, 2016
- Non-accrual loans and leases of $118.6 million, down 34.6 percent from December 31, 2016
- Average deposits of $17.6 billion, up 2.7 percent from 2016
- Earnings per share of $1.44, up 29 cents from 2016
FOURTH QUARTER OBSERVATIONS
- Revenue of $362.8 million, up 10.9 percent from the fourth quarter of 2016
- Net interest income of $241.9 million, up 14.4 percent from the fourth quarter of 2016
- Net interest margin of 4.57 percent, up 27 basis points from the fourth quarter of 2016
- Net charge-offs as a percentage of average loans and leases of 0.38 percent, up 11 basis points from the fourth quarter of 2016
- Average deposits of $18.1 billion, up 6.3 percent from the fourth quarter of 2016
- Earnings per share of 57 cents, up 30 cents from the fourth quarter of 2016
Summary of Financial Results | Table 1 | ||||||||||||||||||||||||||||
Change | |||||||||||||||||||||||||||||
4Q | 3Q | 4Q | 4Q17 vs | 4Q17 vs | YTD | YTD | |||||||||||||||||||||||
(Dollars in thousands, except per-share data) | 2017 | 2017 | 2016 | 3Q17 | 4Q16 | 2017 | 2016 | Change | |||||||||||||||||||||
Net income attributable to TCF | $ | 101,399 | $ | 60,528 | $ | 50,092 | 67.5 | % | 102.4 | % | $ | 268,637 | $ | 212,124 | 26.6 | % | |||||||||||||
Net interest income | 241,860 | 234,103 | 211,446 | 3.3 | 14.4 | 925,238 | 848,106 | 9.1 | |||||||||||||||||||||
Diluted earnings per common share | 0.57 | 0.29 | 0.27 | 96.6 | 111.1 | 1.44 | 1.15 | 25.2 | |||||||||||||||||||||
Financial Ratios(1) |
|||||||||||||||||||||||||||||
Return on average assets | 1.82 | % | 1.15 | % | 0.99 | % | 67 | bps | 83 | bps | 1.26 | % | 1.05 | % | 21 | bps | |||||||||||||
Return on average common equity | 16.95 | 8.44 | 8.40 | 851 | 855 | 10.80 | 9.13 | 167 | |||||||||||||||||||||
Return on average tangible common equity(2) | 32.87 | 9.57 | 9.43 | 2,330 | 2,344 | 15.73 | 10.29 | 544 | |||||||||||||||||||||
Net interest margin | 4.57 | 4.61 | 4.30 | (4 | ) | 27 | 4.54 | 4.34 | 20 | ||||||||||||||||||||
Net charge-offs as a percentage of average loans and leases | 0.38 | 0.18 | 0.27 | 20 | 11 | 0.24 | 0.26 | (2 | ) | ||||||||||||||||||||
(1) Annualized. | |||||||||||||||||||||||||||||
(2) See "Reconciliation of GAAP to Non-GAAP Financial Measures" table. | |||||||||||||||||||||||||||||
TCF Financial Corporation ("TCF" or the "Company") TCF today reported net income of $101.4 million for the fourth quarter of 2017, compared with $50.1 million for the fourth quarter of 2016 and $60.5 million for the third quarter of 2017. Diluted earnings per common share was 57 cents for the fourth quarter of 2017 (inclusive of 29 cents per share of items listed below), compared with 27 cents for the fourth quarter of 2016 and 29 cents for the third quarter of 2017 (inclusive of a one-time reduction in net income available to common stockholders of 4 cents per common share related to the redemption of the Series A non-cumulative perpetual preferred stock in the third quarter of 2017). Net income and diluted earnings per common share for the fourth quarter of 2017 were impacted by the following items:
- Estimated net tax benefit of $130.7 million, or 77 cents per common share, as a result of the enactment of the Tax Cuts and Jobs Act ("Tax Reform") on December 22, 2017,
- Pre-tax charge of $88.2 million, or 48 cents per common share, related to impairment of goodwill and other intangible assets, severance, other asset impairments and lease termination write-offs associated with the discontinuation of auto finance loan originations effective December 1, 2017 and
- Pre-tax impact of $13.1 million, or 5 cents per common share, related to additional TCF Foundation contribution, one-time team member bonuses, planned closure of five branches and inventory finance program extension.
"TCF generated positive momentum throughout 2017 that positions us well for continued success in 2018," said Craig R. Dahl, chairman and chief executive officer. "During the year, we successfully improved core earnings trends, reduced our risk profile and executed on our key initiatives. Our success in these areas, combined with the benefits from the recent Tax Reform, enabled us to give back to our team members and communities, invest in our business and drive shareholder value.
"During the fourth quarter, we discontinued auto finance loan originations and began deploying capital into other areas that we believe will provide a better return for our shareholders. We expect this initiative to result in a meaningful earnings improvement in 2018. As part of this decision, we announced a new share repurchase program and began repurchasing shares in the fourth quarter.
"Enactment of Tax Reform in the fourth quarter not only will reduce TCF's effective tax rate moving forward, but it also created a significant net tax benefit in the quarter. As a result, we were pleased to provide one-time bonuses to eligible team members and make a significant donation to the TCF Foundation that will increase the grants we provide to nonprofit organizations in the communities we serve. Our strong capital position and earnings outlook have also allowed us to announce a 100 percent increase to our quarterly common stock dividend and the redemption of our Series B non-cumulative perpetual preferred stock on March 1, 2018.
"These actions, along with the execution of our business strategy in 2017, put us in a position of strength as we enter 2018. With a continued focus on our four strategic pillars and enhanced capital and earnings positions, we are poised to deliver improved returns for our shareholders."
Revenue |
||||||||||||||||||||||||||||||||
Total Revenue | Table 2 | |||||||||||||||||||||||||||||||
Change | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | 4Q | 3Q | 4Q | 4Q17 vs | 4Q17 vs | YTD | YTD | |||||||||||||||||||||||||
2017 | 2017 | 2016 | 3Q17 | 4Q16 | 2017 | 2016 | Change | |||||||||||||||||||||||||
Total interest income | $ | 270,628 | $ | 257,605 | $ | 231,658 | 5.1 | % | 16.8 | % | $ | 1,019,057 | $ | 930,730 | 9.5 | % | ||||||||||||||||
Total interest expense | 28,768 | 23,502 | 20,212 | 22.4 | 42.3 | 93,819 | 82,624 | 13.5 | ||||||||||||||||||||||||
Net interest income | 241,860 | 234,103 | 211,446 | 3.3 | 14.4 | 925,238 | 848,106 | 9.1 | ||||||||||||||||||||||||
Non-interest income: | ||||||||||||||||||||||||||||||||
Fees and service charges | 33,267 | 34,605 | 35,132 | (3.9 | ) | (5.3 | ) | 131,887 | 137,664 | (4.2 | ) | |||||||||||||||||||||
Card revenue | 14,251 | 14,177 | 13,689 | 0.5 | 4.1 | 55,732 | 54,882 | 1.5 | ||||||||||||||||||||||||
ATM revenue | 4,654 | 5,234 | 4,806 | (11.1 | ) | (3.2 | ) | 19,624 | 20,445 | (4.0 | ) | |||||||||||||||||||||
Subtotal | 52,172 | 54,016 | 53,627 | (3.4 | ) | (2.7 | ) | 207,243 | 212,991 | (2.7 | ) | |||||||||||||||||||||
Gains on sales of auto loans, net | 2,216 | — | 1,145 | N.M. | 93.5 | 5,460 | 34,832 | (84.3 | ) | |||||||||||||||||||||||
Gains on sales of consumer real estate loans, net | 11,407 | 8,049 | 16,676 | 41.7 | (31.6 | ) | 37,327 | 50,427 | (26.0 | ) | ||||||||||||||||||||||
Servicing fee income | 9,000 | 9,966 | 11,404 | (9.7 | ) | (21.1 | ) | 41,347 | 40,182 | 2.9 | ||||||||||||||||||||||
Subtotal | 22,623 | 18,015 | 29,225 | 25.6 | (22.6 | ) | 84,134 | 125,441 | (32.9 | ) | ||||||||||||||||||||||
Leasing and equipment finance | 42,831 | 34,080 | 31,316 | 25.7 | 36.8 | 145,039 | 119,166 | 21.7 | ||||||||||||||||||||||||
Other | 3,218 | 2,930 | 1,365 | 9.8 | 135.8 | 11,646 | 8,883 | 31.1 | ||||||||||||||||||||||||
Fees and other revenue | 120,844 | 109,041 | 115,533 | 10.8 | 4.6 | 448,062 | 466,481 | (3.9 | ) | |||||||||||||||||||||||
Gains (losses) on securities, net | 48 | 189 | 135 | (74.6 | ) | (64.4 | ) | 237 | (581 | ) | N.M. | |||||||||||||||||||||
Total non-interest income | 120,892 | 109,230 | 115,668 | 10.7 | 4.5 | 448,299 | 465,900 | (3.8 | ) | |||||||||||||||||||||||
Total revenue | $ | 362,752 | $ | 343,333 | $ | 327,114 | 5.7 | 10.9 | $ | 1,373,537 | $ | 1,314,006 | 4.5 | |||||||||||||||||||
Net interest margin(1) | 4.57 | % | 4.61 | % | 4.30 | % | (4 |
) bps |
27 | bps | 4.54 | % | 4.34 | % | 20 | bps | ||||||||||||||||
Total non-interest income as a percentage of total revenue | 33.3 | 31.8 | 35.4 | 150 | (210 | ) | 32.6 | 35.5 | (290 | ) | ||||||||||||||||||||||
N.M. Not Meaningful. | ||||||||||||||||||||||||||||||||
(1) Annualized. |
Net Interest Income
- Net interest income for the fourth quarter of 2017 increased $30.4 million, or 14.4 percent, from the fourth quarter of 2016 primarily due to an increase in interest income on loans and leases, partially offset by an increase in total interest expense and a decrease in interest income on loans held for sale. Total interest income increased $39.0 million, or 16.8 percent, from the fourth quarter of 2016 primarily due to higher average balances and increased average yields on leasing and equipment finance loans and leases and increased average yields and higher average balances of commercial loans. The increase was also due to increased average yields on auto finance and consumer real estate loans and higher average balances of inventory finance loans. Total interest expense increased $8.6 million, or 42.3 percent, from the fourth quarter of 2016 primarily due to increased average rates and higher average balances of certificates of deposit, as well as higher average balances of long-term borrowings.
- Net interest income for the fourth quarter of 2017 increased $7.8 million, or 3.3 percent, from the third quarter of 2017 primarily due to an increase in interest income on loans and leases, partially offset by an increase in total interest expense. Total interest income increased $13.0 million, or 5.1 percent, from the third quarter of 2017 primarily due to higher average balances and increased average yields on leasing and equipment finance loans and leases, higher average balances of consumer real estate loans and increased average yields on commercial loans. Total interest expense increased $5.3 million, or 22.4 percent, from the third quarter of 2017 primarily due to increased average rates and higher average balances of certificates of deposit, higher average balances of long-term borrowings and increased average rates on savings accounts.
- Net interest margin was 4.57 percent for the fourth quarter of 2017, up 27 basis points from the fourth quarter of 2016 and down 4 basis points from the third quarter of 2017. The increase from the fourth quarter of 2016 was due to overall margin expansion on loans and leases, primarily impacted by interest rate increases, partially offset by higher average rates on higher average balances of certificates of deposit. The decrease from the third quarter of 2017 was primarily due to increased rates on higher average balances of certificates of deposits, as well as decreased average yields on inventory finance loans. These decreases were partially offset by higher average balances and increased average yields on leasing and equipment finance loans and leases.
Non-interest Income
- TCF sold $126.1 million and $516.0 million of auto loans during the fourth quarters of 2017 and 2016, respectively, resulting in net gains in each respective period. TCF sold no auto loans during the third quarter of 2017. The decrease from the fourth quarter of 2016 was due to the strategic shift in auto finance.
- TCF sold $359.7 million, $520.8 million and $291.0 million of consumer real estate loans during the fourth quarters of 2017 and 2016 and the third quarter of 2017, respectively, resulting in net gains in each respective period.
- Servicing fee income was $9.0 million on $4.7 billion of average loans and leases serviced for others for the fourth quarter of 2017, compared with $11.4 million on $5.5 billion for the fourth quarter of 2016 and $10.0 million on $5.0 billion for the third quarter of 2017. The decreases from both periods were primarily due to run-off in the auto finance serviced for others portfolio.
- Leasing and equipment finance non-interest income for the fourth quarter of 2017 increased $11.5 million, or 36.8 percent, from the fourth quarter of 2016 and increased $8.8 million, or 25.7 percent, from the third quarter of 2017. The increase from the fourth quarter of 2016 was primarily due to an increase in operating lease revenue, mainly driven by the acquisition of Equipment Financing & Leasing Corporation ("EFLC") in the second quarter of 2017. The increase from the third quarter of 2017 was primarily due to an increase in operating lease revenue driven by increased originations in the fourth quarter of 2017, as well as an increase in sales-type lease revenue due to customer-driven events.
Loans and Leases |
|||||||||||||||||||||||||||||
Period-End and Average Loans and Leases | Table 3 | ||||||||||||||||||||||||||||
Percent Change | |||||||||||||||||||||||||||||
4Q | 3Q | 4Q | 4Q17 vs | 4Q17 vs | YTD | YTD | Percent | ||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2017 | 2016 | 3Q17 | 4Q16 | 2017 | 2016 | Change | |||||||||||||||||||||
Period-End: | |||||||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||
First mortgage lien | $ | 1,959,387 | $ | 1,953,199 | $ | 2,292,596 | 0.3 | % | (14.5 | )% | |||||||||||||||||||
Junior lien | 2,860,309 | 2,977,613 | 2,791,756 | (3.9 | ) | 2.5 | |||||||||||||||||||||||
Total consumer real estate | 4,819,696 | 4,930,812 | 5,084,352 | (2.3 | ) | (5.2 | ) | ||||||||||||||||||||||
Commercial | 3,561,193 | 3,489,680 | 3,286,478 | 2.0 | 8.4 | ||||||||||||||||||||||||
Leasing and equipment finance | 4,761,661 | 4,730,931 | 4,336,310 | 0.6 | 9.8 | ||||||||||||||||||||||||
Inventory finance | 2,739,754 | 2,576,077 | 2,470,175 | 6.4 | 10.9 | ||||||||||||||||||||||||
Auto finance | 3,199,639 | 3,240,413 | 2,647,741 | (1.3 | ) | 20.8 | |||||||||||||||||||||||
Other | 22,517 | 20,439 | 18,771 | 10.2 | 20.0 | ||||||||||||||||||||||||
Total | $ | 19,104,460 | $ | 18,988,352 | $ | 17,843,827 | 0.6 | 7.1 | |||||||||||||||||||||
Average: | |||||||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||
First mortgage lien | $ | 1,959,067 | $ | 2,016,049 | $ | 2,306,421 | (2.8 | )% | (15.1 | )% | $ | 2,081,568 | $ | 2,424,013 | (14.1 | )% | |||||||||||||
Junior lien | 3,013,356 | 2,821,051 | 2,779,725 | 6.8 | 8.4 | 2,814,276 | 2,810,116 | 0.1 | |||||||||||||||||||||
Total consumer real estate | 4,972,423 | 4,837,100 | 5,086,146 | 2.8 | (2.2 | ) | 4,895,844 | 5,234,129 | (6.5 | ) | |||||||||||||||||||
Commercial | 3,536,725 | 3,473,425 | 3,147,517 | 1.8 | 12.4 | 3,433,276 | 3,126,881 | 9.8 | |||||||||||||||||||||
Leasing and equipment finance | 4,713,015 | 4,316,434 | 4,252,543 | 9.2 | 10.8 | 4,399,138 | 4,106,718 | 7.1 | |||||||||||||||||||||
Inventory finance | 2,688,387 | 2,479,416 | 2,389,980 | 8.4 | 12.5 | 2,646,500 | 2,414,684 | 9.6 | |||||||||||||||||||||
Auto finance | 3,267,855 | 3,280,612 | 2,647,088 | (0.4 | ) | 23.5 | 3,105,326 | 2,693,041 | 15.3 | ||||||||||||||||||||
Other | 13,007 | 11,567 | 9,307 | 12.4 | 39.8 | 11,149 | 9,538 | 16.9 | |||||||||||||||||||||
Total | $ | 19,191,412 | $ | 18,398,554 | $ | 17,532,581 | 4.3 | 9.5 | $ | 18,491,233 | $ | 17,584,991 | 5.2 | ||||||||||||||||
-
Period-end loans and leases were $19.1 billion at December 31, 2017,
an increase of $1.3 billion, or 7.1 percent, from December 31, 2016
and consistent with loans and leases at September 30, 2017. Average
loans and leases were $19.2 billion for the fourth quarter of 2017, an
increase of $1.7 billion, or 9.5 percent, from the fourth quarter of
2016 and an increase of $0.8 billion, or 4.3 percent, from the third
quarter of 2017.
The increases from December 31, 2016 for period-end loans and leases and average loans and leases were primarily due to increases in the auto finance and leasing and equipment finance portfolios, as well as increases in the commercial and inventory finance portfolios, partially offset by a decrease in the consumer real estate portfolio. The increases in the auto finance portfolio were primarily due to the reclassification of loans from held for sale to held for investment during the second quarter of 2017, partially offset by the discontinuation of auto finance loan originations effective December 1, 2017. The increases in the leasing and equipment finance portfolio were primarily attributable to a loan and lease portfolio purchase of $445.5 million on September 29, 2017. The decreases in the consumer real estate portfolio were primarily due to decreases in the first mortgage lien portfolio due to run-off and the non-accrual loan sales in the first and third quarters of 2017 totaling $71.2 million.
The increase from the third quarter of 2017 for average loans and leases was primarily due to increases in the leasing and equipment finance, inventory finance and consumer real estate loan portfolios. The increase in the leasing and equipment finance portfolio is primarily due to the loan and lease portfolio purchase on September 29, 2017. The increase in the inventory finance portfolio is primarily due to seasonality and the expansion of the number of active dealers. The increase in the consumer real estate portfolio is primarily due to an increase in the junior lien portfolio attributable to the purchase of a loan portfolio of $175.4 million on September 27, 2017.
- Loan and lease originations were $3.9 billion for the fourth quarter of 2017, a decrease of $0.4 billion, or 8.7 percent, from the fourth quarter of 2016 and consistent with the third quarter of 2017. The decrease from the fourth quarter of 2016 was primarily due to decreased originations in auto finance and consumer real estate, partially offset by higher inventory finance and commercial originations.
Credit Quality |
|||||||||||||||||||||
Credit Trends | Table 4 | ||||||||||||||||||||
Change | |||||||||||||||||||||
4Q | 3Q | 2Q | 1Q | 4Q | 4Q17 vs | 4Q17 vs | |||||||||||||||
(Dollars in thousands) | 2017 | 2017 | 2017 | 2017 | 2016 | 3Q17 | 4Q16 | ||||||||||||||
Over 60-day delinquencies as a percentage of period-end loans and leases(1) | 0.12 | % | 0.13 | % | 0.11 | % | 0.09 | % | 0.12 | % | (1 |
) bps |
— | bps | |||||||
Net charge-offs as a percentage of average loans and leases(2), (3), (4) | 0.38 | 0.18 | 0.28 | 0.11 | 0.27 | 20 | 11 | ||||||||||||||
Non-accrual loans and leases and other real estate owned | $ | 136,807 | $ | 146,024 | $ | 158,000 | $ | 170,940 | $ | 228,242 |
(6.3 |
)% |
(40.1 |
)% |
|||||||
Provision for credit losses | 22,259 | 14,545 | 19,446 | 12,193 | 19,888 | 53.0 | 11.9 | ||||||||||||||
(1) Excludes non-accrual loans and leases. | |||||||||||||||||||||
(2) Annualized. | |||||||||||||||||||||
(3) Excluding the $4.6 million recovery from the consumer real estate non-accrual loan sale, net charge-offs as a percentage of average loans and leases was 0.28% for 3Q 2017. | |||||||||||||||||||||
(4) Excluding the $8.7 million recovery from the consumer real estate non-accrual loan sale, net charge-offs as a percentage of average loans and leases was 0.31% for 1Q 2017. |
- The over 60-day delinquency rate, excluding non-accrual loans and leases, was 0.12 percent at December 31, 2017, consistent with the rate at December 31, 2016 and down 1 basis point from the September 30, 2017 rate. Delinquencies improved in the consumer real estate portfolio from December 31, 2016, however this improvement was offset by higher delinquencies in the auto finance and leasing and equipment finance portfolios. The decrease from September 30, 2017 was primarily due to improved delinquencies in the consumer real estate portfolio, partially offset by higher delinquencies in the auto finance portfolio.
- The net charge-off rate was 0.38 percent for the fourth quarter of 2017, up 11 basis points from the fourth quarter of 2016 and up 20 basis points from the third quarter of 2017. The increase from the fourth quarter of 2016 was primarily due to increased net charge-offs in the leasing and equipment finance and auto finance portfolios, partially offset by decreased net charge-offs in the consumer real estate portfolio. The increase from the third quarter of 2017 was primarily due to a $4.6 million recovery of previous charge-offs related to the consumer real estate non-accrual loans that were sold in the third quarter of 2017 and increased net charge-offs in the leasing and equipment finance and auto finance portfolios.
- Non-accrual loans and leases and other real estate owned were $136.8 million at December 31, 2017, a decrease of $91.4 million, or 40.1 percent, from December 31, 2016 and a decrease of $9.2 million, or 6.3 percent, from September 30, 2017. Non-accrual loans and leases were $118.6 million at December 31, 2017, a decrease of $62.9 million, or 34.6 percent, from December 31, 2016 and a decrease of $1.0 million, or 0.9 percent, from September 30, 2017. The decrease from December 31, 2016 was primarily due to the consumer real estate non-accrual loan sales in the first and third quarters of 2017, totaling $71.2 million, partially offset by an increase in non-accrual loans and leases in the leasing and equipment finance portfolio. The decrease from September 30, 2017 was primarily due to a decrease in non-accrual loans in the commercial portfolio, partially offset by an increase in non-accrual loans in the consumer real estate portfolio. Other real estate owned was $18.2 million at December 31, 2017, a decrease of $28.6 million, or 61.1 percent, from December 31, 2016 and a decrease of $8.2 million, or 31.0 percent, from September 30, 2017. The decrease from December 31, 2016 was primarily due to sales of consumer real estate properties outpacing additions and sales of commercial real estate properties. The decrease from September 30, 2017 was primarily due to sales of commercial real estate properties and sales of consumer real estate properties outpacing additions.
- Provision for credit losses was $22.3 million for the fourth quarter of 2017, an increase of $2.4 million, or 11.9 percent, from the fourth quarter of 2016 and an increase of $7.7 million, or 53.0 percent, from the third quarter of 2017. The increase from the fourth quarter of 2016 was primarily due to increased net charge-offs in the leasing and equipment finance portfolio. The increase from the third quarter of 2017 was primarily due to increased reserve requirements and increased net charge-offs in the consumer real estate portfolio mainly driven by the recovery of $4.6 million in the third quarter of 2017 on previous charge-offs related to the consumer real estate non-accrual loans that were sold.
Deposits |
|||||||||||||||||||||||||||||
Average Deposits | Table 5 | ||||||||||||||||||||||||||||
Change | |||||||||||||||||||||||||||||
4Q | 3Q | 4Q | 4Q17 vs | 4Q17 vs | YTD | YTD | |||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2017 | 2016 | 3Q17 | 4Q16 | 2017 | 2016 | Change | |||||||||||||||||||||
Checking | $ | 6,098,522 | $ | 6,046,372 | $ | 5,759,806 | 0.9 | % | 5.9 | % | $ | 6,018,415 | $ | 5,688,690 | 5.8 | % | |||||||||||||
Savings | 5,154,216 | 4,859,973 | 4,681,662 | 6.1 | 10.1 | 4,903,505 | 4,689,543 | 4.6 | |||||||||||||||||||||
Money market | 1,854,442 | 2,106,814 | 2,429,239 | (12.0 | ) | (23.7 | ) | 2,140,553 | 2,488,977 | (14.0 | ) | ||||||||||||||||||
Certificates of deposit | 5,032,085 | 4,636,007 | 4,198,190 | 8.5 | 19.9 | 4,495,062 | 4,229,247 | 6.3 | |||||||||||||||||||||
Total average deposits | $ | 18,139,265 | $ | 17,649,166 | $ | 17,068,897 | 2.8 | 6.3 | $ | 17,557,535 | $ | 17,096,457 | 2.7 | ||||||||||||||||
Average interest rate on deposits(1) | 0.46 | % | 0.38 | % | 0.35 | % | 8 | bps | 11 | bps | 0.38 | % | 0.36 | % | 2 | bps | |||||||||||||
(1) Annualized. |
- Total average deposits for the fourth quarter of 2017 increased $1.1 billion, or 6.3 percent, from the fourth quarter of 2016 and increased $490.1 million, or 2.8 percent, from the third quarter of 2017. The increases from both periods were primarily due to growth in average certificates of deposit, savings balances and checking balances, partially offset by a decrease in money market balances.
- The average interest rate on deposits for the fourth quarter of 2017 was 0.46 percent, up 11 basis points from the fourth quarter of 2016 and up 8 basis points from the third quarter of 2017. The increases from both periods were primarily due to increased average interest rates resulting from promotions for certificates of deposit and savings accounts. The increase from the fourth quarter of 2016 was partially offset by decreased average interest rates on money market balances.
Non-interest Expense |
|||||||||||||||||||||||||||||
Non-interest Expense | Table 6 | ||||||||||||||||||||||||||||
Change | |||||||||||||||||||||||||||||
4Q | 3Q | 4Q | 4Q17 vs | 4Q17 vs | YTD | YTD | |||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2017 | 2016 | 3Q17 | 4Q16 | 2017 | 2016 | Change | |||||||||||||||||||||
Compensation and employee benefits | $ | 127,713 | $ | 115,127 | $ | 115,001 | 10.9 | % | 11.1 | % | $ | 483,235 | $ | 474,722 | 1.8 | % | |||||||||||||
Occupancy and equipment | 39,578 | 38,766 | 38,150 | 2.1 | 3.7 | 156,909 | 149,980 | 4.6 | |||||||||||||||||||||
Other | 158,936 | 61,408 | 59,235 | 158.8 | 168.3 | 345,456 | 231,420 | 49.3 | |||||||||||||||||||||
Subtotal | 326,227 | 215,301 | 212,386 | 51.5 | 53.6 | 985,600 | 856,122 | 15.1 | |||||||||||||||||||||
Operating lease depreciation | 16,497 | 15,696 | 10,906 | 5.1 | 51.3 | 55,901 | 40,359 | 38.5 | |||||||||||||||||||||
Foreclosed real estate and repossessed assets, net | 4,739 | 3,829 | 1,889 | 23.8 | 150.9 | 17,756 | 13,187 | 34.6 | |||||||||||||||||||||
Other credit costs, net | 343 | 209 | 178 | 64.1 | 92.7 | 677 | 219 | N.M. | |||||||||||||||||||||
Total non-interest expense | $ | 347,806 | $ | 235,035 | $ | 225,359 | 48.0 | 54.3 | $ | 1,059,934 | $ | 909,887 | 16.5 | ||||||||||||||||
Efficiency ratio | 95.88 | % | 68.46 | % | 68.89 | % | 2,742 | bps | 2,699 | bps | 77.17 | % | 69.25 | % | 792 | bps | |||||||||||||
N.M. Not Meaningful. |
- Non-interest expense for the fourth quarter of 2017 increased $122.4 million, or 54.3 percent, from the fourth quarter of 2016 and increased $112.8 million, or 48.0 percent, from the third quarter of 2017. The increases from both periods were primarily due to increases in other non-interest expense and compensation and employee benefits. The increase from the fourth quarter of 2016 was also due to increases in operating lease depreciation and foreclosed real estate and repossessed assets expense.
- Compensation and employee benefits expense increased $12.7 million, or 11.1 percent, from the fourth quarter of 2016 and increased $12.6 million, or 10.9 percent, from the third quarter of 2017. The increases from both periods were primarily due to higher incentive compensation and one-time employee bonuses, partially offset by reduced headcount in auto finance.
- Other non-interest expense increased $99.7 million, or 168.3 percent, from the fourth quarter of 2016 and increased $97.5 million, or 158.8 percent, from the third quarter of 2017. The increases from both periods were primarily due to charges related to the discontinuation of auto finance loan originations, including goodwill and other intangible assets impairment charges of $73.4 million and severance, asset impairment and lease termination write-offs expenses of $14.8 million, as well as the donation to TCF Foundation of $5.0 million.
- Operating lease depreciation increased $5.6 million, or 51.3 percent, from the fourth quarter of 2016 primarily due to an increase in leasing and equipment finance operating lease revenue related to the acquisition of EFLC.
- Net expenses related to foreclosed real estate and repossessed assets increased $2.9 million, or 150.9 percent, from the fourth quarter of 2016 primarily due to lower gains on sales of commercial properties and higher repossessed assets expense attributable to auto finance, partially offset by lower operating expenses primarily due to maintaining fewer consumer real estate properties.
Income Tax Expense (Benefit)
- The Company's income tax benefit for the fourth quarter of 2017 was $111.0 million, compared with income tax expense of $29.8 million for the fourth quarter of 2016 and $30.7 million for the third quarter of 2017. The income tax benefit for the fourth quarter of 2017 was impacted by an estimated net tax benefit of $130.7 million primarily resulting from the re-measurement of the Company's estimated net deferred tax liability as a result of the enactment of Tax Reform.
Capital |
||||||||
Capital Information | Table 7 | |||||||
At Dec. 31, | At Dec. 31, | |||||||
(Dollars in thousands, except per-share data) | 2017 | 2016 | ||||||
Total equity | $ | 2,680,584 | $ | 2,444,645 | ||||
Book value per common share | 13.96 | 12.66 | ||||||
Tangible book value per common share(1) | 12.92 | 11.33 | ||||||
Common equity to assets | 10.42 | % | 10.09 | % | ||||
Tangible common equity to tangible assets(1) | 9.72 | 9.13 | ||||||
Capital accumulation rate(2) | 13.81 | 8.59 | ||||||
At Dec. 31, | At Dec. 31, | |||||||
Regulatory Capital: | 2017(3) | 2016 | ||||||
Common equity Tier 1 capital | $ | 2,242,410 | $ | 1,970,323 | ||||
Tier 1 capital | 2,522,178 | 2,248,221 | ||||||
Total capital | 2,889,323 | 2,635,925 | ||||||
Regulatory Capital Ratios: | ||||||||
Common equity Tier 1 capital ratio | 10.79 | % | 10.24 | % | ||||
Tier 1 risk-based capital ratio | 12.14 | 11.68 | ||||||
Total risk-based capital ratio | 13.90 | 13.69 | ||||||
Tier 1 leverage ratio | 11.12 | 10.73 | ||||||
(1) See "Reconciliation of GAAP to Non-GAAP Financial Measures" table. | ||||||||
(2) Calculated as the change in annualized year-to-date common equity Tier 1 capital as a percentage of prior year-end common equity Tier 1 capital. | ||||||||
(3) The regulatory capital ratios for 4Q 2017 are preliminary pending completion and filing of the Company's regulatory reports. |
- TCF maintained strong capital ratios as the Company accumulated capital through earnings as well as the impact of Tax Reform.
- TCF repurchased 446,464 shares of its common stock during the fourth quarter of 2017 at an average cost of $20.51 per share under its share repurchase program. TCF has the ability to purchase an additional $140.8 million in aggregate value of shares of TCF's common stock in its stock repurchase program authorized by its Board of Directors on November 27, 2017.
- Effective October 16, 2017, TCF redeemed all outstanding shares of its Series A non-cumulative perpetual preferred stock and related depositary shares for $172.5 million using cash on hand and the net proceeds from the offering on September 14, 2017 of its Series C non-cumulative perpetual preferred stock and related depositary shares.
- On January 30, 2018, TCF's Board of Directors declared a regular quarterly cash dividend of 15 cents per common share, an increase of 100.0 percent, payable on March 1, 2018, to stockholders of record at the close of business on February 15, 2018. TCF also declared dividends on the 6.45% Series B and 5.70% Series C non-cumulative perpetual preferred stock, both payable on March 1, 2018, to stockholders of record at the close of business on February 15, 2018.
- On January 30, 2018, TCF's Board of Directors approved the redemption of all outstanding shares of TCF's 6.45% Series B non-cumulative perpetual preferred stock on March 1, 2018.
Webcast Information
A live webcast of TCF's conference call to discuss the fourth quarter earnings will be hosted at TCF's website, http://ir.tcfbank.com, on January 30, 2018 at 9:00 a.m. CST. A slide presentation for the call will be available on the website prior to the call. Additionally, the webcast will be available for replay on TCF's website after the conference call. The website also includes free access to company news releases, TCF's annual report, investor presentations and SEC filings.
TCF is a Wayzata, Minnesota-based national bank holding company. As of December 31, 2017, TCF had $23.0 billion in total assets and 320 bank branches in Illinois, Minnesota, Michigan, Colorado, Wisconsin, Arizona and South Dakota providing retail and commercial banking services. TCF, through its subsidiaries, also conducts commercial leasing and equipment 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, targets, guidance, statements of the Company's plans and objectives, forecasts of market trends and other matters, are forward-looking statements based on the Company's assumptions and beliefs. Such statements may be identified by such words or phrases as "will likely result," "are expected to," "will continue," "outlook," "will benefit," "is anticipated," "estimate," "project," "management believes" or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those discussed in such statements and no assurance can be given that the results in any forward-looking statement will be achieved. For these statements, TCF claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Any forward-looking statement speaks only as of the date on which it is made, and we disclaim any obligation to subsequently revise any forward-looking statement to reflect events or circumstances after such date or to reflect the occurrence of anticipated or unanticipated events.
Certain factors could cause the Company's future results to differ materially from those expressed or implied in any forward-looking statements contained herein. These factors include the factors discussed in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2016 under the heading "Risk Factors," the factors discussed below and any other cautionary statements, written or oral, which may be made or referred to in connection with any such forward-looking statements. Since it is not possible to foresee all such factors, these factors should not be considered as complete or exhaustive.
Adverse Economic or Business Conditions; Competitive Conditions; Credit and Other Risks. Deterioration in general economic and banking industry conditions, including those arising from government shutdowns, defaults, anticipated defaults or rating agency downgrades of sovereign debt (including debt of the U.S.), or increases in unemployment; adverse economic, business and competitive developments such as shrinking interest margins, reduced demand for financial services and loan and lease products, deposit outflows, increased deposit costs due to competition for deposit growth and evolving payment system developments, deposit account attrition or an inability to increase the number of deposit accounts; customers completing financial transactions without using a bank; adverse changes in credit quality and other risks posed by TCF's loan, lease, investment, securities held to maturity and securities available for sale portfolios, including declines in commercial or residential real estate values, changes in the allowance for loan and lease losses dictated by new market conditions or regulatory requirements, or the inability of home equity line borrowers to make increased payments caused by increased interest rates or amortization of principal; deviations from estimates of prepayment rates and fluctuations in interest rates that result in decreases in the value of assets such as interest-only strips that arise in connection with TCF's loan sales activity; interest rate risks resulting from fluctuations in prevailing interest rates or other factors that result in a mismatch between yields earned on TCF's interest-earning assets and the rates paid on its deposits and borrowings; foreign currency exchange risks; counterparty risk, including the risk of defaults by our counterparties or diminished availability of counterparties who satisfy our credit quality requirements; decreases in demand for the types of equipment that TCF leases or finances; the effect of any negative publicity; the effects of man-made and natural disasters, including fires, floods, tornadoes, hurricanes, acts of terrorism, civil disturbances and environmental damage, which may negatively affect our operations and/or our customers.
Legislative and Regulatory Requirements. New consumer protection and supervisory requirements and regulations, including those resulting from action by the Consumer Financial Protection Bureau ("CFPB") and changes in the scope of Federal preemption of state laws that could be applied to national banks and their subsidiaries; the imposition of requirements that adversely impact TCF's deposit, lending, loan collection and other business activities such as mortgage foreclosure moratorium laws, further regulation of financial institution campus banking programs, restrictions on arbitration, or new restrictions on loan and lease products; changes affecting customer account charges and fee income, including changes to interchange rates; regulatory actions or changes in customer opt-in preferences with respect to overdrafts, which may have an adverse impact on TCF; governmental regulations or judicial actions affecting the security interests of creditors; deficiencies in TCF's compliance programs, including under the Bank Secrecy Act in past or future periods, which may result in regulatory enforcement action including monetary penalties; increased health care costs including those resulting from health care reform; regulatory criticism and resulting enforcement actions or other adverse consequences such as increased capital requirements, higher deposit insurance assessments or monetary damages or penalties; heightened regulatory practices, requirements or expectations, including, but not limited to, requirements related to enterprise risk management, the Bank Secrecy Act and anti-money laundering compliance activity.
Earnings/Capital Risks and Constraints, Liquidity Risks. Limitations on TCF's ability to carry out its share repurchase program, pay dividends or increase dividends because of financial performance deterioration, regulatory restrictions or limitations; increased deposit insurance premiums, special assessments or other costs related to adverse conditions in the banking industry; the impact on banks of regulatory reform, including additional capital, leverage, liquidity and risk management requirements or changes in the composition of qualifying regulatory capital; adverse changes in securities markets directly or indirectly affecting TCF's ability to sell assets or to fund its operations; diminished unsecured borrowing capacity resulting from TCF credit rating downgrades or unfavorable conditions in the credit markets that restrict or limit various funding sources; costs associated with new regulatory requirements or interpretive guidance including those relating to liquidity; uncertainties relating to future retail deposit account changes, including limitations on TCF's ability to predict customer behavior and the impact on TCF's fee revenues.
Branching Risk; Growth Risks. Adverse developments affecting TCF's supermarket banking relationships or either of the primary supermarket chains in which TCF maintains supermarket branches; costs related to closing underperforming branches; inability to timely close underperforming branches due to long-term lease obligations; slower than anticipated growth in existing or acquired businesses; inability to successfully execute on TCF's growth strategy through acquisitions or expanding existing business relationships; failure to expand or diversify TCF's balance sheet through new or expanded programs or opportunities; failure to effectuate, and risks of claims related to, sales of loans; risks related to new product additions and addition of distribution channels (or entry into new markets) for existing products.
Technological and Operational Matters. Technological or operational difficulties, loss or theft of information, cyber-attacks and other security breaches, counterparty failures and the possibility that deposit account losses (fraudulent checks, etc.) may increase; failure to keep pace with technological change, such as by failing to develop and maintain technology necessary to satisfy customer demands, costs and possible disruptions related to upgrading systems; the failure to attract and retain key employees.
Litigation Risks. Results of litigation or government enforcement actions such as TCF's pending litigation with the CFPB and related matters, including class action litigation or enforcement actions concerning TCF's lending or deposit activities, including account opening/origination, servicing practices, fees or charges, employment practices, or checking account overdraft program "opt in" requirements; 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 the impact of the Tax Cuts and Jobs Act tax reform legislation and adoption of federal or state legislation that would increase federal or 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) | |||||||||||||||
Quarter Ended December 31, | Change | ||||||||||||||
2017 | 2016 | $ | % | ||||||||||||
Interest income: | |||||||||||||||
Loans and leases | $ | 256,633 | $ | 210,848 | $ | 45,785 | 21.7 | % | |||||||
Securities available for sale | 8,760 | 7,553 | 1,207 | 16.0 | |||||||||||
Securities held to maturity | 1,048 | 1,165 | (117 | ) | (10.0 | ) | |||||||||
Loans held for sale and other | 4,187 | 12,092 | (7,905 | ) | (65.4 | ) | |||||||||
Total interest income | 270,628 | 231,658 | 38,970 | 16.8 | |||||||||||
Interest expense: | |||||||||||||||
Deposits | 20,846 | 15,053 | 5,793 | 38.5 | |||||||||||
Borrowings | 7,922 | 5,159 | 2,763 | 53.6 | |||||||||||
Total interest expense | 28,768 | 20,212 | 8,556 | 42.3 | |||||||||||
Net interest income | 241,860 | 211,446 | 30,414 | 14.4 | |||||||||||
Provision for credit losses | 22,259 | 19,888 | 2,371 | 11.9 | |||||||||||
Net interest income after provision for credit losses | 219,601 | 191,558 | 28,043 | 14.6 | |||||||||||
Non-interest income: | |||||||||||||||
Fees and service charges | 33,267 | 35,132 | (1,865 | ) | (5.3 | ) | |||||||||
Card revenue | 14,251 | 13,689 | 562 | 4.1 | |||||||||||
ATM revenue | 4,654 | 4,806 | (152 | ) | (3.2 | ) | |||||||||
Subtotal | 52,172 | 53,627 | (1,455 | ) | (2.7 | ) | |||||||||
Gains on sales of auto loans, net | 2,216 | 1,145 | 1,071 | 93.5 | |||||||||||
Gains on sales of consumer real estate loans, net | 11,407 | 16,676 | (5,269 | ) | (31.6 | ) | |||||||||
Servicing fee income | 9,000 | 11,404 | (2,404 | ) | (21.1 | ) | |||||||||
Subtotal | 22,623 | 29,225 | (6,602 | ) | (22.6 | ) | |||||||||
Leasing and equipment finance | 42,831 | 31,316 | 11,515 | 36.8 | |||||||||||
Other | 3,218 | 1,365 | 1,853 | 135.8 | |||||||||||
Fees and other revenue | 120,844 | 115,533 | 5,311 | 4.6 | |||||||||||
Gains (losses) on securities, net | 48 | 135 | (87 | ) | (64.4 | ) | |||||||||
Total non-interest income | 120,892 | 115,668 | 5,224 | 4.5 | |||||||||||
Non-interest expense: | |||||||||||||||
Compensation and employee benefits | 127,713 | 115,001 | 12,712 | 11.1 | |||||||||||
Occupancy and equipment | 39,578 | 38,150 | 1,428 | 3.7 | |||||||||||
Other | 158,936 | 59,235 | 99,701 | 168.3 | |||||||||||
Subtotal | 326,227 | 212,386 | 113,841 | 53.6 | |||||||||||
Operating lease depreciation | 16,497 | 10,906 | 5,591 | 51.3 | |||||||||||
Foreclosed real estate and repossessed assets, net | 4,739 | 1,889 | 2,850 | 150.9 | |||||||||||
Other credit costs, net | 343 | 178 | 165 | 92.7 | |||||||||||
Total non-interest expense | 347,806 | 225,359 | 122,447 | 54.3 | |||||||||||
Income (loss) before income tax expense (benefit) | (7,313 | ) | 81,867 | (89,180 | ) | N.M. | |||||||||
Income tax expense (benefit) | (110,965 | ) | 29,762 | (140,727 | ) | N.M. | |||||||||
Income after income tax expense (benefit) | 103,652 | 52,105 | 51,547 | 98.9 | |||||||||||
Income attributable to non-controlling interest | 2,253 | 2,013 | 240 | 11.9 | |||||||||||
Net income attributable to TCF Financial Corporation | 101,399 | 50,092 | 51,307 | 102.4 | |||||||||||
Preferred stock dividends | 3,746 | 4,847 | (1,101 | ) | (22.7 | ) | |||||||||
Net income available to common stockholders | $ | 97,653 | $ | 45,245 | $ | 52,408 | 115.8 | ||||||||
Earnings per common share: | |||||||||||||||
Basic | $ | 0.58 | $ | 0.27 | $ | 0.31 | 114.8 | % | |||||||
Diluted | 0.57 | 0.27 | 0.30 | 111.1 | |||||||||||
Dividends declared per common share | $ | 0.075 | $ | 0.075 | $ | — | — | % | |||||||
Average common and common equivalent shares | |||||||||||||||
outstanding (in thousands): | |||||||||||||||
Basic | 169,233 | 167,412 | 1,821 | 1.1 | % | ||||||||||
Diluted | 170,069 | 168,049 | 2,020 | 1.2 | |||||||||||
N.M. Not Meaningful. |
|||||||||||||||
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
(Dollars in thousands, except per-share data) | |||||||||||||||
(Unaudited) | |||||||||||||||
Year Ended December 31, | Change | ||||||||||||||
2017 | 2016 | $ | % | ||||||||||||
Interest income: | |||||||||||||||
Loans and leases | $ | 954,246 | $ | 850,546 | $ | 103,700 | 12.2 | % | |||||||
Securities available for sale | 33,278 | 26,573 | 6,705 | 25.2 | |||||||||||
Securities held to maturity | 4,436 | 4,649 | (213 | ) | (4.6 | ) | |||||||||
Loans held for sale and other | 27,097 | 48,962 | (21,865 | ) | (44.7 | ) | |||||||||
Total interest income | 1,019,057 | 930,730 | 88,327 | 9.5 | |||||||||||
Interest expense: | |||||||||||||||
Deposits | 66,012 | 61,788 | 4,224 | 6.8 | |||||||||||
Borrowings | 27,807 | 20,836 | 6,971 | 33.5 | |||||||||||
Total interest expense | 93,819 | 82,624 | 11,195 | 13.5 | |||||||||||
Net interest income | 925,238 | 848,106 | 77,132 | 9.1 | |||||||||||
Provision for credit losses | 68,443 | 65,874 | 2,569 | 3.9 | |||||||||||
Net interest income after provision for credit losses | 856,795 | 782,232 | 74,563 | 9.5 | |||||||||||
Non-interest income: | |||||||||||||||
Fees and service charges | 131,887 | 137,664 | (5,777 | ) | (4.2 | ) | |||||||||
Card revenue | 55,732 | 54,882 | 850 | 1.5 | |||||||||||
ATM revenue | 19,624 | 20,445 | (821 | ) | (4.0 | ) | |||||||||
Subtotal | 207,243 | 212,991 | (5,748 | ) | (2.7 | ) | |||||||||
Gains on sales of auto loans, net | 5,460 | 34,832 | (29,372 | ) | (84.3 | ) | |||||||||
Gains on sales of consumer real estate loans, net | 37,327 | 50,427 | (13,100 | ) | (26.0 | ) | |||||||||
Servicing fee income | 41,347 | 40,182 | 1,165 | 2.9 | |||||||||||
Subtotal | 84,134 | 125,441 | (41,307 | ) | (32.9 | ) | |||||||||
Leasing and equipment finance | 145,039 | 119,166 | 25,873 | 21.7 | |||||||||||
Other | 11,646 | 8,883 | 2,763 | 31.1 | |||||||||||
Fees and other revenue | 448,062 | 466,481 | (18,419 | ) | (3.9 | ) | |||||||||
Gains (losses) on securities, net | 237 | (581 | ) | 818 | N.M. | ||||||||||
Total non-interest income | 448,299 | 465,900 | (17,601 | ) | (3.8 | ) | |||||||||
Non-interest expense: | |||||||||||||||
Compensation and employee benefits | 483,235 | 474,722 | 8,513 | 1.8 | |||||||||||
Occupancy and equipment | 156,909 | 149,980 | 6,929 | 4.6 | |||||||||||
Other | 345,456 | 231,420 | 114,036 | 49.3 | |||||||||||
Subtotal | 985,600 | 856,122 | 129,478 | 15.1 | |||||||||||
Operating lease depreciation | 55,901 | 40,359 | 15,542 | 38.5 | |||||||||||
Foreclosed real estate and repossessed assets, net | 17,756 | 13,187 | 4,569 | 34.6 | |||||||||||
Other credit costs, net | 677 | 219 | 458 | N.M. | |||||||||||
Total non-interest expense | 1,059,934 | 909,887 | 150,047 | 16.5 | |||||||||||
Income before income tax expense (benefit) | 245,160 | 338,245 | (93,085 | ) | (27.5 | ) | |||||||||
Income tax expense (benefit) | (33,624 | ) | 116,528 | (150,152 | ) | N.M. | |||||||||
Income after income tax expense (benefit) | 278,784 | 221,717 | 57,067 | 25.7 | |||||||||||
Income attributable to non-controlling interest | 10,147 | 9,593 | 554 | 5.8 | |||||||||||
Net income attributable to TCF Financial Corporation | 268,637 | 212,124 | 56,513 | 26.6 | |||||||||||
Preferred stock dividends | 19,904 | 19,388 | 516 | 2.7 | |||||||||||
Impact of preferred stock redemption | 5,779 | — | 5,779 | N.M. | |||||||||||
Net income available to common stockholders | $ | 242,954 | $ | 192,736 | $ | 50,218 | 26.1 | ||||||||
Earnings per common share: | |||||||||||||||
Basic | $ | 1.44 | $ | 1.15 | $ | 0.29 | 25.2 | % | |||||||
Diluted | 1.44 | 1.15 | 0.29 | 25.2 | |||||||||||
Dividends declared per common share | $ | 0.30 | $ | 0.30 | $ | — | — | % | |||||||
Average common and common equivalent shares | |||||||||||||||
outstanding (in thousands): | |||||||||||||||
Basic | 168,680 | 167,220 | 1,460 | 0.9 | % | ||||||||||
Diluted | 169,089 | 167,807 | 1,282 | 0.8 | |||||||||||
N.M. Not Meaningful. |
|||||||||||||||
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||||||||||
(Dollars in thousands, except per-share data) | |||||||||||||||
(Unaudited) | |||||||||||||||
At Dec. 31, | At Dec. 31, | Change | |||||||||||||
2017 | 2016 | $ | % | ||||||||||||
ASSETS: | |||||||||||||||
Cash and due from banks | $ | 621,782 | $ | 609,603 | $ | 12,179 | 2.0 | % | |||||||
Investments | 82,644 | 74,714 | 7,930 | 10.6 | |||||||||||
Securities held to maturity | 161,576 | 181,314 | (19,738 | ) | (10.9 | ) | |||||||||
Securities available for sale | 1,709,018 | 1,423,435 | 285,583 | 20.1 | |||||||||||
Loans and leases held for sale | 134,862 | 268,832 | (133,970 | ) | (49.8 | ) | |||||||||
Loans and leases: | |||||||||||||||
Consumer real estate: | |||||||||||||||
First mortgage lien | 1,959,387 | 2,292,596 | (333,209 | ) | (14.5 | ) | |||||||||
Junior lien | 2,860,309 | 2,791,756 | 68,553 | 2.5 | |||||||||||
Total consumer real estate | 4,819,696 | 5,084,352 | (264,656 | ) | (5.2 | ) | |||||||||
Commercial | 3,561,193 | 3,286,478 | 274,715 | 8.4 | |||||||||||
Leasing and equipment finance | 4,761,661 | 4,336,310 | 425,351 | 9.8 | |||||||||||
Inventory finance | 2,739,754 | 2,470,175 | 269,579 | 10.9 | |||||||||||
Auto finance | 3,199,639 | 2,647,741 | 551,898 | 20.8 | |||||||||||
Other | 22,517 | 18,771 | 3,746 | 20.0 | |||||||||||
Total loans and leases | 19,104,460 | 17,843,827 | 1,260,633 | 7.1 | |||||||||||
Allowance for loan and lease losses | (171,041 | ) | (160,269 | ) | (10,772 | ) | (6.7 | ) | |||||||
Net loans and leases | 18,933,419 | 17,683,558 | 1,249,861 | 7.1 | |||||||||||
Premises and equipment, net | 421,549 | 418,372 | 3,177 | 0.8 | |||||||||||
Goodwill, net | 154,757 | 225,640 | (70,883 | ) | (31.4 | ) | |||||||||
Other assets | 782,552 | 555,858 | 226,694 | 40.8 | |||||||||||
Total assets | $ | 23,002,159 | $ | 21,441,326 | $ | 1,560,833 | 7.3 | ||||||||
LIABILITIES AND EQUITY: | |||||||||||||||
Deposits: | |||||||||||||||
Checking | $ | 6,300,127 | $ | 6,009,151 | $ | 290,976 | 4.8 | % | |||||||
Savings | 5,287,606 | 4,719,481 | 568,125 | 12.0 | |||||||||||
Money market | 1,764,998 | 2,421,467 | (656,469 | ) | (27.1 | ) | |||||||||
Certificates of deposit | 4,982,271 | 4,092,423 | 889,848 | 21.7 | |||||||||||
Total deposits | 18,335,002 | 17,242,522 | 1,092,480 | 6.3 | |||||||||||
Short-term borrowings | — | 4,391 | (4,391 | ) | (100.0 | ) | |||||||||
Long-term borrowings | 1,249,449 | 1,073,181 | 176,268 | 16.4 | |||||||||||
Total borrowings | 1,249,449 | 1,077,572 | 171,877 | 16.0 | |||||||||||
Accrued expenses and other liabilities | 737,124 | 676,587 | 60,537 | 8.9 | |||||||||||
Total liabilities | 20,321,575 | 18,996,681 | 1,324,894 | 7.0 | |||||||||||
Total TCF Financial Corporation stockholders' equity | 2,662,757 | 2,427,483 | 235,274 | 9.7 | |||||||||||
Non-controlling interest in subsidiaries | 17,827 | 17,162 | 665 | 3.9 | |||||||||||
Total equity | 2,680,584 | 2,444,645 | 235,939 | 9.7 | |||||||||||
Total liabilities and equity | $ | 23,002,159 | $ | 21,441,326 | $ | 1,560,833 | 7.3 | ||||||||
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||
SUMMARY OF CREDIT QUALITY DATA | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
Over 60-Day Delinquencies as a Percentage of Portfolio(1) |
||||||||||||||||||||||
At | At | At | At | At | Change from | |||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Dec. 31, | ||||||||||||||||
2017 | 2017 | 2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||
Consumer real estate: | ||||||||||||||||||||||
First mortgage lien | 0.25 | % | 0.32 | % | 0.31 | % | 0.28 | % | 0.40 | % | (7 | ) | bps | (15 | ) | bps | ||||||
Junior lien | 0.04 | 0.05 | 0.05 | 0.05 | 0.05 | (1 | ) | (1 | ) | |||||||||||||
Total consumer real estate | 0.13 | 0.15 | 0.16 | 0.15 | 0.21 | (2 | ) | (8 | ) | |||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||
Leasing and equipment finance | 0.14 | 0.15 | 0.14 | 0.12 | 0.10 | (1 | ) | 4 | ||||||||||||||
Inventory finance | 0.01 | 0.01 | 0.01 | — | — | — | 1 | |||||||||||||||
Auto finance | 0.28 | 0.25 | 0.20 | 0.13 | 0.23 | 3 | 5 | |||||||||||||||
Other | 0.04 | 0.07 | 0.30 | 0.05 | 0.10 | (3 | ) | (6 | ) | |||||||||||||
Subtotal | 0.11 | 0.12 | 0.11 | 0.09 | 0.12 | (1 | ) | (1 | ) | |||||||||||||
Portfolios acquired with deteriorated credit quality | 13.18 | 9.42 | — | — | — | 376 | 1,318 | |||||||||||||||
Total delinquencies | 0.12 | 0.13 | 0.11 | 0.09 | 0.12 | (1 | ) | — | ||||||||||||||
(1) Excludes non-accrual loans and leases. |
||||||||||||||||||||||
Net Charge-Offs as a Percentage of Average Loans and Leases |
||||||||||||||||||||||
Quarter Ended(1) | Change from | |||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Dec. 31, | ||||||||||||||||
2017 | 2017 | 2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||
Consumer real estate: | ||||||||||||||||||||||
First mortgage lien | 0.18 | % | (0.16 | )% | 0.15 | % | (0.18 | )% | 0.26 | % | 34 | bps | (8 | ) | bps | |||||||
Junior lien | (0.03 | ) | (0.38 | ) | 0.05 | (0.89 | ) | 0.08 | 35 | (11 | ) | |||||||||||
Total consumer real estate | 0.05 | (0.29 | ) | 0.09 | (0.58 | ) | 0.17 | 34 | (12 | ) | ||||||||||||
Commercial | (0.04 | ) | (0.02 | ) | 0.29 | 0.32 | 0.01 | (2 | ) | (5 | ) | |||||||||||
Leasing and equipment finance | 0.41 | 0.10 | 0.14 | 0.13 | 0.10 | 31 | 31 | |||||||||||||||
Inventory finance | 0.15 | 0.08 | 0.09 | 0.01 | 0.07 | 7 | 8 | |||||||||||||||
Auto finance | 1.36 | 1.13 | 0.83 | 1.12 | 1.09 | 23 | 27 | |||||||||||||||
Other | N.M. | N.M. | N.M. | N.M. | N.M. | N.M. | N.M. | |||||||||||||||
Total | 0.38 | 0.18 | 0.28 | 0.11 | 0.27 | 20 | 11 | |||||||||||||||
N.M. Not Meaningful. | ||||||||||||||||||||||
(1) Annualized. | ||||||||||||||||||||||
Non-Accrual Loans and Leases Rollforward |
||||||||||||||||||||||||||||
Quarter Ended | Change from | |||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Dec. 31, | ||||||||||||||||||||||
2017 | 2017 | 2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||
Balance, beginning of period | $ | 119,619 | $ | 129,273 | $ | 138,981 | $ | 181,445 | $ | 190,047 | $ | (9,654 | ) | $ | (70,428 | ) | ||||||||||||
Additions | 32,384 | 39,094 | 23,667 | 34,661 | 32,398 | (6,710 | ) | (14 | ) | |||||||||||||||||||
Charge-offs | (7,636 | ) | (3,916 | ) | (6,819 | ) | (6,412 | ) | (4,158 | ) | (3,720 | ) | (3,478 | ) | ||||||||||||||
Transfers to other assets | (9,551 | ) | (7,308 | ) | (10,870 | ) | (8,786 | ) | (17,118 | ) | (2,243 | ) | 7,567 | |||||||||||||||
Return to accrual status | (2,187 | ) | (3,559 | ) | (3,077 | ) | (2,591 | ) | (4,546 | ) | 1,372 | 2,359 | ||||||||||||||||
Payments received | (14,412 | ) | (7,993 | ) | (11,647 | ) | (10,732 | ) | (14,351 | ) | (6,419 | ) | (61 | ) | ||||||||||||||
Sales | — | (25,924 | ) | (892 | ) | (49,916 | ) | (2,764 | ) | 25,924 | 2,764 | |||||||||||||||||
Other, net | 365 | (48 | ) | (70 | ) | 1,312 | 1,937 | 413 | (1,572 | ) | ||||||||||||||||||
Balance, end of period | $ | 118,582 | $ | 119,619 | $ | 129,273 | $ | 138,981 | $ | 181,445 | $ | (1,037 | ) | $ | (62,863 | ) | ||||||||||||
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||
SUMMARY OF CREDIT QUALITY DATA, CONTINUED | ||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
Other Real Estate Owned Rollforward |
||||||||||||||||||||||||||||
Quarter Ended | Change from | |||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Dec. 31, | ||||||||||||||||||||||
2017 | 2017 | 2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||
Balance, beginning of period | $ | 26,405 | $ | 28,727 | $ | 31,959 | $ | 46,797 | $ | 33,712 | $ | (2,322 | ) | $ | (7,307 | ) | ||||||||||||
Transferred in | 5,638 | 5,685 | 8,638 | 7,212 | 13,865 | (47 | ) | (8,227 | ) | |||||||||||||||||||
Sales | (13,395 | ) | (9,204 | ) | (11,243 | ) | (14,982 | ) | (8,655 | ) | (4,191 | ) | (4,740 | ) | ||||||||||||||
Writedowns | (1,024 | ) | (1,345 | ) | (1,674 | ) | (1,538 | ) | (1,281 | ) | 321 | 257 | ||||||||||||||||
Other, net(1) | 601 | 2,542 | 1,047 | (5,530 | ) | 9,156 | (1,941 | ) | (8,555 | ) | ||||||||||||||||||
Balance, end of period | $ | 18,225 | $ | 26,405 | $ | 28,727 | $ | 31,959 | $ | 46,797 | $ | (8,180 | ) | $ | (28,572 | ) | ||||||||||||
(1) Includes transfers (to) from premises and equipment. |
||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses |
|||||||||||||||||||||||||||||||||||
At | At | At | At | At | |||||||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | |||||||||||||||||||||||||||||||
2017 | 2017 | 2017 | 2017 | 2016 | |||||||||||||||||||||||||||||||
% of | % of | % of | % of | % of | |||||||||||||||||||||||||||||||
Balance |
|
Portfolio |
Balance |
|
Portfolio |
Balance |
|
Portfolio |
Balance |
|
Portfolio |
Balance | Portfolio | ||||||||||||||||||||||
Consumer real estate | $ | 47,168 | 0.98 | % | $ | 47,838 | 0.97 | % | $ | 52,408 | 1.10 | % | $ | 53,851 | 1.16 | % | $ | 59,448 | 1.17 | % | |||||||||||||||
Commercial | 37,195 | 1.04 | 36,344 | 1.04 | 34,669 | 0.99 | 33,697 | 1.00 | 32,695 | 0.99 | |||||||||||||||||||||||||
Leasing and equipment finance | 22,528 | 0.47 | 22,771 | 0.48 | 21,922 | 0.51 | 21,257 | 0.50 | 21,350 | 0.49 | |||||||||||||||||||||||||
Inventory finance | 13,233 | 0.48 | 11,978 | 0.46 | 12,129 | 0.48 | 15,816 | 0.55 | 13,932 | 0.56 | |||||||||||||||||||||||||
Auto finance | 50,225 | 1.57 | 48,660 | 1.50 | 43,893 | 1.35 | 35,108 | 1.26 | 32,310 | 1.22 | |||||||||||||||||||||||||
Other | 692 | 3.07 | 653 | 3.19 | 599 | 3.08 | 437 | 2.60 | 534 | 2.84 | |||||||||||||||||||||||||
Total | $ | 171,041 | 0.90 | $ | 168,244 | 0.89 | $ | 165,620 | 0.90 | $ | 160,166 | 0.89 | $ | 160,269 | 0.90 | ||||||||||||||||||||
Changes in Allowance for Loan and Lease Losses |
||||||||||||||||||||||||||||
Quarter Ended | Change from | |||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Dec. 31, | ||||||||||||||||||||||
2017 | 2017 | 2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||
Balance, beginning of period | $ | 168,244 | $ | 165,620 | $ | 160,166 | $ | 160,269 | $ | 155,841 | $ | 2,624 | $ | 12,403 | ||||||||||||||
Charge-offs | (23,865 | ) | (17,999 | ) | (18,326 | ) | (18,902 | ) | (16,451 | ) | (5,866 | ) | (7,414 | ) | ||||||||||||||
Recoveries | 5,580 | 9,847 | 5,412 | 13,813 | 4,718 | (4,267 | ) | 862 | ||||||||||||||||||||
Net (charge-offs) recoveries | (18,285 | ) | (8,152 | ) | (12,914 | ) | (5,089 | ) | (11,733 | ) | (10,133 | ) | (6,552 | ) | ||||||||||||||
Provision for credit losses | 22,259 | 14,545 | 19,446 | 12,193 | 19,888 | 7,714 | 2,371 | |||||||||||||||||||||
Other | (1,177 | ) | (3,769 | ) | (1,078 | ) | (7,207 | ) | (3,727 | ) | 2,592 | 2,550 | ||||||||||||||||
Balance, end of period | $ | 171,041 | $ | 168,244 | $ | 165,620 | $ | 160,166 | $ | 160,269 | $ | 2,797 | $ | 10,772 | ||||||||||||||
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
Quarter Ended December 31, | ||||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||||
Average | Yields and | Average | Yields and | |||||||||||||||||||
Balance | Interest(1) | Rates(1)(2) | Balance | Interest(1) | Rates(1)(2) | |||||||||||||||||
ASSETS: | ||||||||||||||||||||||
Investments and other | $ | 303,958 | $ | 2,349 | 3.07 | % | $ | 276,018 | $ | 2,322 | 3.35 | % | ||||||||||
Securities held to maturity | 163,080 | 1,048 | 2.57 | 182,177 | 1,165 | 2.56 | ||||||||||||||||
Securities available for sale:(3) | ||||||||||||||||||||||
Taxable | 831,113 | 4,675 | 2.25 | 791,289 | 4,400 | 2.22 | ||||||||||||||||
Tax-exempt(4) | 779,964 | 6,284 | 3.22 | 610,070 | 4,851 | 3.18 | ||||||||||||||||
Loans and leases held for sale | 113,501 | 1,838 | 6.43 | 492,457 | 9,770 | 7.89 | ||||||||||||||||
Loans and leases:(5) | ||||||||||||||||||||||
Consumer real estate: | ||||||||||||||||||||||
Fixed-rate | 1,821,240 | 25,729 | 5.61 | 2,169,493 | 30,367 | 5.57 | ||||||||||||||||
Variable- and adjustable-rate | 3,151,183 | 47,290 | 5.95 | 2,916,653 | 39,294 | 5.36 | ||||||||||||||||
Total consumer real estate | 4,972,423 | 73,019 | 5.83 | 5,086,146 | 69,661 | 5.45 | ||||||||||||||||
Commercial: | ||||||||||||||||||||||
Fixed-rate | 963,703 | 13,337 | 5.49 | 948,856 | 11,212 | 4.70 | ||||||||||||||||
Variable- and adjustable-rate | 2,573,022 | 30,382 | 4.68 | 2,198,661 | 22,395 | 4.05 | ||||||||||||||||
Total commercial | 3,536,725 | 43,719 | 4.90 | 3,147,517 | 33,607 | 4.25 | ||||||||||||||||
Leasing and equipment finance | 4,713,015 | 57,722 | 4.90 | 4,252,543 | 47,129 | 4.43 | ||||||||||||||||
Inventory finance | 2,688,387 | 40,753 | 6.01 | 2,389,980 | 34,820 | 5.80 | ||||||||||||||||
Auto finance | 3,267,855 | 43,109 | 5.23 | 2,647,088 | 26,903 | 4.04 | ||||||||||||||||
Other | 13,007 | 157 | 4.75 | 9,307 | 135 | 5.72 | ||||||||||||||||
Total loans and leases | 19,191,412 | 258,479 | 5.35 | 17,532,581 | 212,255 | 4.82 | ||||||||||||||||
Total interest-earning assets | 21,383,028 | 274,673 | 5.11 | 19,884,592 | 234,763 | 4.70 | ||||||||||||||||
Other assets(6) | 1,437,126 | 1,253,002 | ||||||||||||||||||||
Total assets | $ | 22,820,154 | $ | 21,137,594 | ||||||||||||||||||
LIABILITIES AND EQUITY: | ||||||||||||||||||||||
Non-interest bearing deposits: | ||||||||||||||||||||||
Retail | $ | 1,938,053 | $ | 1,773,673 | ||||||||||||||||||
Small business | 972,493 | 926,388 | ||||||||||||||||||||
Commercial and custodial | 660,300 | 615,686 | ||||||||||||||||||||
Total non-interest bearing deposits | 3,570,846 | 3,315,747 | ||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||
Checking | 2,541,475 | 114 | 0.02 | 2,454,815 | 85 | 0.01 | ||||||||||||||||
Savings | 5,140,417 | 2,284 | 0.18 | 4,670,906 | 429 | 0.04 | ||||||||||||||||
Money market | 1,854,442 | 2,242 | 0.48 | 2,429,239 | 3,451 | 0.57 | ||||||||||||||||
Certificates of deposit | 5,032,085 | 16,206 | 1.28 | 4,198,190 | 11,088 | 1.05 | ||||||||||||||||
Total interest-bearing deposits | 14,568,419 | 20,846 | 0.57 | 13,753,150 | 15,053 | 0.44 | ||||||||||||||||
Total deposits | 18,139,265 | 20,846 | 0.46 | 17,068,897 | 15,053 | 0.35 | ||||||||||||||||
Borrowings: | ||||||||||||||||||||||
Short-term borrowings | 3,759 | 17 | 1.75 | 5,063 | 9 | 0.77 | ||||||||||||||||
Long-term borrowings | 1,295,268 | 7,905 | 2.43 | 931,720 | 5,150 | 2.21 | ||||||||||||||||
Total borrowings | 1,299,027 | 7,922 | 2.43 | 936,783 | 5,159 | 2.20 | ||||||||||||||||
Total interest-bearing liabilities | 15,867,446 | 28,768 | 0.72 | 14,689,933 | 20,212 | 0.55 | ||||||||||||||||
Total deposits and borrowings | 19,438,292 | 28,768 | 0.59 | 18,005,680 | 20,212 | 0.45 | ||||||||||||||||
Accrued expenses and other liabilities | 790,850 | 695,778 | ||||||||||||||||||||
Total liabilities | 20,229,142 | 18,701,458 | ||||||||||||||||||||
Total TCF Financial Corp. stockholders' equity | 2,570,613 | 2,417,222 | ||||||||||||||||||||
Non-controlling interest in subsidiaries | 20,399 | 18,914 | ||||||||||||||||||||
Total equity | 2,591,012 | 2,436,136 | ||||||||||||||||||||
Total liabilities and equity | $ | 22,820,154 | $ | 21,137,594 | ||||||||||||||||||
Net interest income and margin | $ | 245,905 | 4.57 | $ | 214,551 | 4.30 |
(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 $267.8 million and $157.2 million for the fourth quarters of 2017 and 2016, respectively. | |
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||||
Average | Yields and | Average | Yields and | |||||||||||||||||||
Balance | Interest(1) | Rates(1) | Balance | Interest(1) | Rates(1) | |||||||||||||||||
ASSETS: | ||||||||||||||||||||||
Investments and other | $ | 282,507 | $ | 10,491 | 3.71 | % | $ | 319,582 | $ | 9,314 | 2.91 | % | ||||||||||
Securities held to maturity | 170,006 | 4,436 | 2.61 | 190,863 | 4,649 | 2.44 | ||||||||||||||||
Securities available for sale:(2) | ||||||||||||||||||||||
Taxable | 823,526 | 18,382 | 2.23 | 719,743 | 16,238 | 2.26 | ||||||||||||||||
Tax-exempt(3) | 712,530 | 22,916 | 3.22 | 495,708 | 15,900 | 3.21 | ||||||||||||||||
Loans and leases held for sale | 208,678 | 16,606 | 7.96 | 479,401 | 39,648 | 8.27 | ||||||||||||||||
Loans and leases:(4) | ||||||||||||||||||||||
Consumer real estate: | ||||||||||||||||||||||
Fixed-rate | 1,934,395 | 109,185 | 5.64 | 2,285,647 | 130,753 | 5.72 | ||||||||||||||||
Variable- and adjustable-rate | 2,961,449 | 171,671 | 5.80 | 2,948,482 | 156,919 | 5.32 | ||||||||||||||||
Total consumer real estate | 4,895,844 | 280,856 | 5.74 | 5,234,129 | 287,672 | 5.50 | ||||||||||||||||
Commercial: | ||||||||||||||||||||||
Fixed-rate | 977,698 | 47,587 | 4.87 | 972,107 | 47,445 | 4.88 | ||||||||||||||||
Variable- and adjustable-rate | 2,455,578 | 111,886 | 4.56 | 2,154,774 | 85,996 | 3.99 | ||||||||||||||||
Total commercial | 3,433,276 | 159,473 | 4.64 | 3,126,881 | 133,441 | 4.27 | ||||||||||||||||
Leasing and equipment finance | 4,399,138 | 202,508 | 4.60 | 4,106,718 | 183,029 | 4.46 | ||||||||||||||||
Inventory finance | 2,646,500 | 164,386 | 6.21 | 2,414,684 | 140,453 | 5.82 | ||||||||||||||||
Auto finance | 3,105,326 | 152,974 | 4.93 | 2,693,041 | 110,651 | 4.11 | ||||||||||||||||
Other | 11,149 | 571 | 5.11 | 9,538 | 548 | 5.74 | ||||||||||||||||
Total loans and leases | 18,491,233 | 960,768 | 5.20 | 17,584,991 | 855,794 | 4.87 | ||||||||||||||||
Total interest-earning assets | 20,688,480 | 1,033,599 | 5.00 | 19,790,288 | 941,543 | 4.76 | ||||||||||||||||
Other assets(5) | 1,363,487 | 1,285,127 | ||||||||||||||||||||
Total assets | $ | 22,051,967 | $ | 21,075,415 | ||||||||||||||||||
LIABILITIES AND EQUITY: | ||||||||||||||||||||||
Non-interest bearing deposits: | ||||||||||||||||||||||
Retail | $ | 1,931,856 | $ | 1,778,707 | ||||||||||||||||||
Small business | 925,890 | 884,192 | ||||||||||||||||||||
Commercial and custodial | 634,487 | 585,611 | ||||||||||||||||||||
Total non-interest bearing deposits | 3,492,233 | 3,248,510 | ||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||
Checking | 2,541,407 | 379 | 0.01 | 2,452,206 | 346 | 0.01 | ||||||||||||||||
Savings | 4,888,280 | 4,255 | 0.09 | 4,677,517 | 1,510 | 0.03 | ||||||||||||||||
Money market | 2,140,553 | 10,139 | 0.47 | 2,488,977 | 15,114 | 0.61 | ||||||||||||||||
Certificates of deposit | 4,495,062 | 51,239 | 1.14 | 4,229,247 | 44,818 | 1.06 | ||||||||||||||||
Total interest-bearing deposits | 14,065,302 | 66,012 | 0.47 | 13,847,947 | 61,788 | 0.45 | ||||||||||||||||
Total deposits | 17,557,535 | 66,012 | 0.38 | 17,096,457 | 61,788 | 0.36 | ||||||||||||||||
Borrowings: | ||||||||||||||||||||||
Short-term borrowings | 5,267 | 58 | 1.10 | 7,051 | 51 | 0.73 | ||||||||||||||||
Long-term borrowings | 1,239,433 | 27,749 | 2.24 | 890,846 | 20,785 | 2.33 | ||||||||||||||||
Total borrowings | 1,244,700 | 27,807 | 2.23 | 897,897 | 20,836 | 2.32 | ||||||||||||||||
Total interest-bearing liabilities | 15,310,002 | 93,819 | 0.61 | 14,745,844 | 82,624 | 0.56 | ||||||||||||||||
Total deposits and borrowings | 18,802,235 | 93,819 | 0.50 | 17,994,354 | 82,624 | 0.46 | ||||||||||||||||
Accrued expenses and other liabilities | 713,794 | 686,360 | ||||||||||||||||||||
Total liabilities | 19,516,029 | 18,680,714 | ||||||||||||||||||||
Total TCF Financial Corp. stockholders' equity | 2,513,424 | 2,373,176 | ||||||||||||||||||||
Non-controlling interest in subsidiaries | 22,514 | 21,525 | ||||||||||||||||||||
Total equity | 2,535,938 | 2,394,701 | ||||||||||||||||||||
Total liabilities and equity | $ | 22,051,967 | $ | 21,075,415 | ||||||||||||||||||
Net interest income and margin | $ | 939,780 | 4.54 | $ | 858,919 | 4.34 | ||||||||||||||||
(1) | Interest and yields are presented on a fully tax-equivalent basis. | |
(2) | Average balances and yields of securities available for sale are based upon historical amortized cost and exclude equity securities. | |
(3) | The yield on tax-exempt securities available for sale is computed on a tax-equivalent basis using a statutory federal income tax rate of 35% for all periods presented. | |
(4) | Average balances of loans and leases include non-accrual loans and leases and are presented net of unearned income. | |
(5) | Includes leased equipment and related initial direct costs under operating leases of $224.7 million and $140.3 million for the year ended December 31, 2017 and 2016, respectively. | |
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME AND FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
(Dollars in thousands, except per-share data) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | ||||||||||||||||
2017 | 2017 | 2017 | 2017 | 2016 | ||||||||||||||||
Interest income: | ||||||||||||||||||||
Loans and leases | $ | 256,633 | $ | 243,973 | $ | 234,092 | $ | 219,548 | $ | 210,848 | ||||||||||
Securities available for sale | 8,760 | 8,486 | 8,052 | 7,980 | 7,553 | |||||||||||||||
Securities held to maturity | 1,048 | 1,073 | 1,035 | 1,280 | 1,165 | |||||||||||||||
Loans held for sale and other | 4,187 | 4,073 | 5,338 | 13,499 | 12,092 | |||||||||||||||
Total interest income | 270,628 | 257,605 | 248,517 | 242,307 | 231,658 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Deposits | 20,846 | 17,015 | 14,436 | 13,715 | 15,053 | |||||||||||||||
Borrowings | 7,922 | 6,487 | 6,920 | 6,478 | 5,159 | |||||||||||||||
Total interest expense | 28,768 | 23,502 | 21,356 | 20,193 | 20,212 | |||||||||||||||
Net interest income | 241,860 | 234,103 | 227,161 | 222,114 | 211,446 | |||||||||||||||
Provision for credit losses | 22,259 | 14,545 | 19,446 | 12,193 | 19,888 | |||||||||||||||
Net interest income after provision for credit losses | 219,601 | 219,558 | 207,715 | 209,921 | 191,558 | |||||||||||||||
Non-interest income: | ||||||||||||||||||||
Fees and service charges | 33,267 | 34,605 | 32,733 | 31,282 | 35,132 | |||||||||||||||
Card revenue | 14,251 | 14,177 | 14,154 | 13,150 | 13,689 | |||||||||||||||
ATM revenue | 4,654 | 5,234 | 5,061 | 4,675 | 4,806 | |||||||||||||||
Subtotal | 52,172 | 54,016 | 51,948 | 49,107 | 53,627 | |||||||||||||||
Gains on sales of auto loans, net | 2,216 | — | 380 | 2,864 | 1,145 | |||||||||||||||
Gains on sales of consumer real estate loans, net | 11,407 | 8,049 | 8,980 | 8,891 | 16,676 | |||||||||||||||
Servicing fee income | 9,000 | 9,966 | 10,730 | 11,651 | 11,404 | |||||||||||||||
Subtotal | 22,623 | 18,015 | 20,090 | 23,406 | 29,225 | |||||||||||||||
Leasing and equipment finance | 42,831 | 34,080 | 39,830 | 28,298 | 31,316 | |||||||||||||||
Other | 3,218 | 2,930 | 2,795 | 2,703 | 1,365 | |||||||||||||||
Fees and other revenue | 120,844 | 109,041 | 114,663 | 103,514 | 115,533 | |||||||||||||||
Gains (losses) on securities, net | 48 | 189 | — | — | 135 | |||||||||||||||
Total non-interest income | 120,892 | 109,230 | 114,663 | 103,514 | 115,668 | |||||||||||||||
Non-interest expense: | ||||||||||||||||||||
Compensation and employee benefits | 127,713 | 115,127 | 115,918 | 124,477 | 115,001 | |||||||||||||||
Occupancy and equipment | 39,578 | 38,766 | 38,965 | 39,600 | 38,150 | |||||||||||||||
Other | 158,936 | 61,408 | 61,075 | 64,037 | 59,235 | |||||||||||||||
Subtotal |
326,227 | 215,301 | 215,958 | 228,114 | 212,386 | |||||||||||||||
Operating lease depreciation | 16,497 | 15,696 | 12,466 | 11,242 | 10,906 | |||||||||||||||
Foreclosed real estate and repossessed assets, net | 4,739 | 3,829 | 4,639 | 4,549 | 1,889 | |||||||||||||||
Other credit costs, net | 343 | 209 | 24 | 101 | 178 | |||||||||||||||
Total non-interest expense | 347,806 | 235,035 | 233,087 | 244,006 | 225,359 | |||||||||||||||
Income (loss) before income tax expense (benefit) | (7,313 | ) | 93,753 | 89,291 | 69,429 | 81,867 | ||||||||||||||
Income tax expense (benefit) | (110,965 | ) | 30,704 | 25,794 | 20,843 | 29,762 | ||||||||||||||
Income after income tax expense (benefit) | 103,652 | 63,049 | 63,497 | 48,586 | 52,105 | |||||||||||||||
Income attributable to non-controlling interest | 2,253 | 2,521 | 3,065 | 2,308 | 2,013 | |||||||||||||||
Net income attributable to TCF Financial Corporation | 101,399 | 60,528 | 60,432 | 46,278 | 50,092 | |||||||||||||||
Preferred stock dividends | 3,746 | 6,464 | 4,847 | 4,847 | 4,847 | |||||||||||||||
Impact of preferred stock redemption | — | 5,779 | — | — | — | |||||||||||||||
Net income available to common stockholders | $ | 97,653 | $ | 48,285 | $ | 55,585 | $ | 41,431 | $ | 45,245 | ||||||||||
Earnings per common share: | ||||||||||||||||||||
Basic | $ | 0.58 | $ | 0.29 | $ | 0.33 | $ | 0.25 | $ | 0.27 | ||||||||||
Diluted | 0.57 | 0.29 | 0.33 | 0.25 | 0.27 | |||||||||||||||
Dividends declared per common share | $ | 0.075 | $ | 0.075 | $ | 0.075 | $ | 0.075 | $ | 0.075 | ||||||||||
Financial highlights:(1) | ||||||||||||||||||||
Return on average assets | 1.82 | % | 1.15 | % | 1.17 | % | 0.90 | % | 0.99 | % | ||||||||||
Return on average common equity | 16.95 | 8.44 | 9.96 | 7.64 | 8.40 | |||||||||||||||
Net interest margin | 4.57 | 4.61 | 4.52 | 4.46 | 4.30 | |||||||||||||||
(1) Annualized. |
||||||||||||||||||||
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
CONSOLIDATED QUARTERLY AVERAGE BALANCE SHEETS | |||||||||||||||||||
(In thousands) | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Dec. 31, |
Sep. 30, |
Jun. 30, |
Mar. 31, |
Dec. 31, |
|||||||||||||||
ASSETS: | |||||||||||||||||||
Investments and other | $ | 303,958 | $ | 279,839 | $ | 259,548 | $ | 286,519 | $ | 276,018 | |||||||||
Securities held to maturity | 163,080 | 166,883 | 172,322 | 177,939 | 182,177 | ||||||||||||||
Securities available for sale:(1) | |||||||||||||||||||
Taxable | 831,113 | 825,192 | 821,744 | 815,867 | 791,289 | ||||||||||||||
Tax-exempt | 779,964 | 737,859 | 689,667 | 640,826 | 610,070 | ||||||||||||||
Loans and leases held for sale | 113,501 | 96,143 | 165,859 | 464,301 | 492,457 | ||||||||||||||
Loans and leases:(2) | |||||||||||||||||||
Consumer real estate: | |||||||||||||||||||
Fixed-rate | 1,821,240 | 1,872,607 | 1,963,822 | 2,083,472 | 2,169,493 | ||||||||||||||
Variable- and adjustable-rate | 3,151,183 | 2,964,493 | 2,782,296 | 2,945,529 | 2,916,653 | ||||||||||||||
Total consumer real estate | 4,972,423 | 4,837,100 | 4,746,118 | 5,029,001 | 5,086,146 | ||||||||||||||
Commercial: | |||||||||||||||||||
Fixed-rate | 963,703 | 980,262 | 966,884 | 1,000,316 | 948,856 | ||||||||||||||
Variable- and adjustable-rate | 2,573,022 | 2,493,163 | 2,450,168 | 2,302,575 | 2,198,661 | ||||||||||||||
Total commercial | 3,536,725 | 3,473,425 | 3,417,052 | 3,302,891 | 3,147,517 | ||||||||||||||
Leasing and equipment finance | 4,713,015 | 4,316,434 | 4,277,376 | 4,285,944 | 4,252,543 | ||||||||||||||
Inventory finance | 2,688,387 | 2,479,416 | 2,723,340 | 2,696,787 | 2,389,980 | ||||||||||||||
Auto finance | 3,267,855 | 3,280,612 | 3,149,974 | 2,714,862 | 2,647,088 | ||||||||||||||
Other | 13,007 | 11,567 | 10,235 | 9,740 | 9,307 | ||||||||||||||
Total loans and leases | 19,191,412 | 18,398,554 | 18,324,095 | 18,039,225 | 17,532,581 | ||||||||||||||
Total interest-earning assets | 21,383,028 | 20,504,470 | 20,433,235 | 20,424,677 | 19,884,592 | ||||||||||||||
Other assets(3) | 1,437,126 | 1,434,957 | 1,315,495 | 1,263,678 | 1,253,002 | ||||||||||||||
Total assets | $ | 22,820,154 | $ | 21,939,427 | $ | 21,748,730 | $ | 21,688,355 | $ | 21,137,594 | |||||||||
LIABILITIES AND EQUITY: | |||||||||||||||||||
Non-interest-bearing deposits: | |||||||||||||||||||
Retail | $ | 1,938,053 | $ | 1,940,797 | $ | 1,967,542 | $ | 1,880,298 | $ | 1,773,673 | |||||||||
Small business | 972,493 | 937,847 | 897,391 | 894,845 | 926,388 | ||||||||||||||
Commercial and custodial | 660,300 | 642,400 | 608,706 | 626,081 | 615,686 | ||||||||||||||
Total non-interest bearing deposits |
3,570,846 | 3,521,044 | 3,473,639 | 3,401,224 | 3,315,747 | ||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||
Checking | 2,541,475 | 2,539,211 | 2,554,563 | 2,530,281 | 2,454,815 | ||||||||||||||
Savings | 5,140,417 | 4,846,090 | 4,806,371 | 4,756,486 | 4,670,906 | ||||||||||||||
Money market | 1,854,442 | 2,106,814 | 2,221,807 | 2,385,353 | 2,429,239 | ||||||||||||||
Certificates of deposit | 5,032,085 | 4,636,007 | 4,266,488 | 4,033,143 | 4,198,190 | ||||||||||||||
Total interest-bearing deposits | 14,568,419 | 14,128,122 | 13,849,229 | 13,705,263 | 13,753,150 | ||||||||||||||
Total deposits | 18,139,265 | 17,649,166 | 17,322,868 | 17,106,487 | 17,068,897 | ||||||||||||||
Borrowings: | |||||||||||||||||||
Short-term borrowings | 3,759 | 6,448 | 6,230 | 4,628 | 5,063 | ||||||||||||||
Long-term borrowings | 1,295,268 | 983,004 | 1,225,022 | 1,459,053 | 931,720 | ||||||||||||||
Total borrowings | 1,299,027 | 989,452 | 1,231,252 | 1,463,681 | 936,783 | ||||||||||||||
Total interest-bearing liabilities | 15,867,446 | 15,117,574 | 15,080,481 | 15,168,944 | 14,689,933 | ||||||||||||||
Total deposits and borrowings | 19,438,292 | 18,638,618 | 18,554,120 | 18,570,168 | 18,005,680 | ||||||||||||||
Accrued expenses and other liabilities | 790,850 | 723,792 | 673,740 | 665,301 | 695,778 | ||||||||||||||
Total liabilities | 20,229,142 | 19,362,410 | 19,227,860 | 19,235,469 | 18,701,458 | ||||||||||||||
Total TCF Financial Corporation stockholders' equity | 2,570,613 | 2,554,667 | 2,494,682 | 2,431,755 | 2,417,222 | ||||||||||||||
Non-controlling interest in subsidiaries | 20,399 | 22,350 | 26,188 | 21,131 | 18,914 | ||||||||||||||
Total equity | 2,591,012 | 2,577,017 | 2,520,870 | 2,452,886 | 2,436,136 | ||||||||||||||
Total liabilities and equity | $ | 22,820,154 | $ | 21,939,427 | $ | 21,748,730 | $ | 21,688,355 | $ | 21,137,594 |
(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 $267.8 million, $249.0 million, $200.7 million, $180.3 million and $157.2 million for the fourth, third, second and first quarters of 2017, and for the fourth quarter of 2016, respectively. | |
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||
CONSOLIDATED QUARTERLY YIELDS AND RATES(1)(2) | |||||||||||||||
(Unaudited) | |||||||||||||||
Dec. 31, |
Sep. 30, |
Jun. 30, |
Mar. 31, |
Dec. 31, |
|||||||||||
ASSETS: | |||||||||||||||
Investments and other | 3.07 | % | 3.80 | % | 4.20 | % | 3.88 | % | 3.35 | % | |||||
Securities held to maturity | 2.57 | 2.57 | 2.40 | 2.88 | 2.56 | ||||||||||
Securities available for sale:(3) | |||||||||||||||
Taxable | 2.25 | 2.24 | 2.16 | 2.28 | 2.22 | ||||||||||
Tax-exempt(4) | 3.22 | 3.22 | 3.23 | 3.19 | 3.18 | ||||||||||
Loans and leases held for sale | 6.43 | 5.75 | 6.34 | 9.39 | 7.89 | ||||||||||
Loans and leases: | |||||||||||||||
Consumer real estate: | |||||||||||||||
Fixed-rate | 5.61 | 5.61 | 5.65 | 5.70 | 5.57 | ||||||||||
Variable- and adjustable rate | 5.95 | 5.91 | 5.76 | 5.54 | 5.36 | ||||||||||
Total consumer real estate | 5.83 | 5.80 | 5.72 | 5.60 | 5.45 | ||||||||||
Commercial: | |||||||||||||||
Fixed-rate | 5.49 | 4.62 | 4.62 | 4.75 | 4.70 | ||||||||||
Variable- and adjustable-rate | 4.68 | 4.76 | 4.45 | 4.30 | 4.05 | ||||||||||
Total commercial | 4.90 | 4.72 | 4.50 | 4.43 | 4.25 | ||||||||||
Leasing and equipment finance | 4.90 | 4.53 | 4.48 | 4.48 | 4.43 | ||||||||||
Inventory finance | 6.01 | 6.71 | 6.22 | 5.93 | 5.80 | ||||||||||
Auto finance | 5.23 | 5.17 | 5.01 | 4.15 | 4.04 | ||||||||||
Other | 4.75 | 5.03 | 5.37 | 5.44 | 5.72 | ||||||||||
Total loans and leases | 5.35 | 5.31 | 5.15 | 4.95 | 4.82 | ||||||||||
Total interest-earning assets | 5.11 | 5.07 | 4.94 | 4.86 | 4.70 | ||||||||||
LIABILITIES: | |||||||||||||||
Interest-bearing deposits: | |||||||||||||||
Checking | 0.02 | 0.02 | 0.01 | 0.01 | 0.01 | ||||||||||
Savings | 0.18 | 0.08 | 0.04 | 0.04 | 0.04 | ||||||||||
Money market | 0.48 | 0.47 | 0.45 | 0.50 | 0.57 | ||||||||||
Certificates of deposit | 1.28 | 1.16 | 1.07 | 1.02 | 1.05 | ||||||||||
Total interest-bearing deposits | 0.57 | 0.48 | 0.42 | 0.41 | 0.44 | ||||||||||
Total deposits | 0.46 | 0.38 | 0.33 | 0.33 | 0.35 | ||||||||||
Borrowings: | |||||||||||||||
Short-term borrowings | 1.75 | 1.33 | 0.79 | 0.65 | 0.77 | ||||||||||
Long-term borrowings | 2.43 | 2.62 | 2.26 | 1.78 | 2.21 | ||||||||||
Total borrowings | 2.43 | 2.62 | 2.25 | 1.78 | 2.20 | ||||||||||
Total interest-bearing liabilities | 0.72 | 0.62 | 0.57 | 0.54 | 0.55 | ||||||||||
Net interest margin | 4.57 | 4.61 | 4.52 | 4.46 | 4.30 |
(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, except per share data) | ||||||||||
(Unaudited) | ||||||||||
At Dec. 31, | At Dec. 31, | |||||||||
2017 | 2016 | |||||||||
Computation of tangible common equity to tangible assets and tangible book value per common share: |
||||||||||
Total equity | $ | 2,680,584 | $ | 2,444,645 | ||||||
Less: Non-controlling interest in subsidiaries | 17,827 | 17,162 | ||||||||
Total TCF Financial Corporation stockholders' equity | 2,662,757 | 2,427,483 | ||||||||
Less: Preferred stock | 265,821 | 263,240 | ||||||||
Total common stockholders' equity | (a) | 2,396,936 | 2,164,243 | |||||||
Less: | ||||||||||
Goodwill, net | 154,757 | 225,640 | ||||||||
Other intangibles, net | 23,687 | 1,738 | ||||||||
Tangible common equity | (b) | $ | 2,218,492 | $ | 1,936,865 | |||||
Total assets | (c) | $ | 23,002,159 | $ | 21,441,326 | |||||
Less: | ||||||||||
Goodwill, net | 154,757 | 225,640 | ||||||||
Other intangibles, net | 23,687 | 1,738 | ||||||||
Tangible assets | (d) | $ | 22,823,715 | $ | 21,213,948 | |||||
Common stock shares outstanding | (e) | 171,669,419 | 170,991,940 | |||||||
Common equity to assets | (a) / (c) | 10.42 | % | 10.09 | % | |||||
Tangible common equity to tangible assets | (b) / (d) | 9.72 | % | 9.13 | % | |||||
Book value per common share | (a) / (e) | $ | 13.96 | $ | 12.66 | |||||
Tangible book value per common share | (b) / (e) | $ | 12.92 | $ | 11.33 | |||||
Quarter Ended | Year Ended | |||||||||||||||||||||
Dec. 31, | Sep. 30, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||
2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Computation of return on average tangible common equity: |
||||||||||||||||||||||
Net income available to common stockholders | (f) | $ | 97,653 | $ | 48,285 | $ | 45,245 | $ | 242,954 | $ | 192,736 | |||||||||||
Plus: Goodwill impairment | 73,041 | — | — | 73,041 | — | |||||||||||||||||
Plus: Other intangibles amortization and impairment | 1,187 | 806 | 290 | 2,354 | 1,388 | |||||||||||||||||
Less: Income tax expense attributable to other intangibles amortization and impairment | 530 | 277 | 103 | 1,050 | 493 | |||||||||||||||||
Adjusted net income available to common stockholders | (g) | $ | 171,351 | $ | 48,814 | $ | 45,432 | $ | 317,299 | $ | 193,631 | |||||||||||
Average balances: | ||||||||||||||||||||||
Total equity | $ | 2,591,012 | $ | 2,577,017 | $ | 2,436,136 | $ | 2,535,938 | $ | 2,394,701 | ||||||||||||
Less: Non-controlling interest in subsidiaries | 20,399 | 22,350 | 18,914 | 22,514 | 21,525 | |||||||||||||||||
Total TCF Financial Corporation stockholders' equity | 2,570,613 | 2,554,667 | 2,417,222 | 2,513,424 | 2,373,176 | |||||||||||||||||
Less: Preferred stock | 265,821 | 265,556 | 263,240 | 264,474 | 263,240 | |||||||||||||||||
Average total common stockholders' equity | (h) | 2,304,792 | 2,289,111 | 2,153,982 | 2,248,950 | 2,109,936 | ||||||||||||||||
Less: | ||||||||||||||||||||||
Goodwill, net | 197,734 | 227,539 | 225,640 | 219,144 | 225,640 | |||||||||||||||||
Other intangibles, net | 21,901 | 22,279 | 1,872 | 12,807 | 2,414 | |||||||||||||||||
Average tangible common equity | (i) | $ | 2,085,157 | $ | 2,039,293 | $ | 1,926,470 | $ | 2,016,999 | $ | 1,881,882 | |||||||||||
Return on average common equity(2) | (f) / (h) | 16.95 | % | 8.44 | % | 8.40 | % | 10.80 | % | 9.13 | % | |||||||||||
Return on average tangible common equity(2) | (g) / (i) | 32.87 | % | 9.57 | % | 9.43 | % | 15.73 | % | 10.29 | % |
(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. | |
Click here to subscribe to news release email alerts for TCF Financial Corporation.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180130005703/en/
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.