TCF Financial Corporation (NYSE: TCF):
First Quarter Observations
Summary of Financial Results | ||||||||||||||||||||||||||||
At or For the Quarter Ended | Change From | |||||||||||||||||||||||||||
Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Mar. 31, | ||||||||||||||||||||||
(Dollars in thousands, except per share data) | 2019 | 2018 | 2018 | 2018 | 2018 | 2018 | 2018 | |||||||||||||||||||||
Net income attributable to TCF | $ | 70,494 | $ | 85,652 | $ | 86,196 | $ | 58,749 | $ | 73,761 | (17.7 | ) | % | (4.4 | ) | % | ||||||||||||
Net interest income | 250,907 | 248,888 | 249,121 | 250,799 | 243,199 | 0.8 | 3.2 | |||||||||||||||||||||
Basic earnings per common share | 0.42 | 0.51 | 0.51 | 0.34 | 0.39 | (17.6 | ) | 7.7 | ||||||||||||||||||||
Diluted earnings per common share | 0.42 | 0.51 | 0.51 | 0.34 | 0.39 | (17.6 | ) | 7.7 | ||||||||||||||||||||
Adjusted diluted earnings per common share(1) | 0.46 | 0.51 | 0.51 | 0.49 | 0.39 | (9.8 | ) | 17.9 | ||||||||||||||||||||
Financial Ratios | ||||||||||||||||||||||||||||
Return on average assets(4) | 1.22 | % | 1.52 | % | 1.55 | % | 1.08 | % | 1.33 | % | (30 | ) | bps | (11 | ) | bps | ||||||||||||
ROACE(4) | 11.40 | 14.30 | 14.44 | 9.72 | 11.23 | (290 | ) | 17 | ||||||||||||||||||||
Adjusted ROACE(1)(4) | 12.61 | 14.30 | 14.44 | 14.11 | 11.23 | (169 | ) | 138 | ||||||||||||||||||||
ROATCE(1)(4) | 12.42 | 15.59 | 15.76 | 10.65 | 12.26 | (317 | ) | 16 | ||||||||||||||||||||
Adjusted ROATCE(1)(4) | 13.72 | 15.59 | 15.76 | 15.39 | 12.26 | (187 | ) | 146 | ||||||||||||||||||||
Net interest margin(4) | 4.56 | 4.60 | 4.66 | 4.67 | 4.59 | (4 | ) | (3 | ) | |||||||||||||||||||
Net charge-offs as a percentage of average loans and leases(4) | 0.39 | 0.46 | 0.15 | 0.27 | 0.29 | (7 | ) | 10 | ||||||||||||||||||||
Non-performing assets as a percentage of total loans and leases and other real estate owned | 0.63 | 0.65 | 0.59 | 0.54 | 0.74 | (2 | ) | (11 | ) | |||||||||||||||||||
Efficiency ratio | 70.70 | 66.30 | 67.41 | 74.55 | 69.21 | 440 | 149 | |||||||||||||||||||||
Adjusted efficiency ratio(1) | 68.06 | 66.30 | 67.41 | 65.78 | 69.21 | 176 | (115 | ) |
(1) | See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables. | |
(2) | Calculated by subtracting merger-related expenses of $9.5 million from non-interest expense of $253.1 million for the first quarter of 2019, compared to non-interest expense of $246.0 million for the first quarter of 2018. | |
(3) | Calculated by subtracting auto finance loans of $1.7 billion and $2.8 billion at March 31, 2019 and 2018, respectively, from total loans and leases of $19.4 billion at March 31, 2019 and 2018. | |
(4) | Annualized |
TCF Financial Corporation ("TCF" or the "Company") (NYSE: TCF) today reported net income of $70.5 million for the first quarter of 2019, compared with $73.8 million for the first quarter of 2018 and $85.7 million for the fourth quarter of 2018. Diluted earnings per common share was 42 cents for the first quarter of 2019 (inclusive of a 4 cents per common share after-tax impact of merger-related expenses), compared with 39 cents for the first quarter of 2018 and 51 cents for the fourth quarter of 2018. Adjusted diluted earnings per common share was 46 cents for the first quarter of 2019, an increase of 17.9% from the first quarter of 2018 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).
"Our strong first quarter performance was highlighted by higher return on capital compared to a year ago and disciplined expense management," said Craig R. Dahl, chairman and chief executive officer. "Our results were supported by loan and lease growth excluding the run-off of our auto finance portfolio, and growth in core checking and savings deposit balances, while we controlled expense growth excluding merger-related expenses. We continue to see a positive business outlook for the year, with strong organic growth prospects across many of our businesses and we are well underway in integration planning work to prepare for our proposed merger of equals with Chemical Financial Corporation."
Net Interest Income and Net Interest Margin
Net interest income was $250.9 million for the first quarter of 2019, an increase of $7.7 million, or 3.2%, from the first quarter of 2018 and an increase of $2.0 million, or 0.8%, from the fourth quarter of 2018. Net interest margin was 4.56% for the first quarter of 2019, down 3 basis points from the first quarter of 2018 and down 4 basis points from the fourth quarter of 2018. The increase in net interest income from the first quarter of 2018 was primarily due to increased average yields and higher average balances in the variable- and adjustable-rate loan portfolios, higher average balances of fixed-rate consumer real estate loans and debt securities available for sale, partially offset by increased cost of funds and lower average balances of auto finance loans. The increase in net interest income from the fourth quarter of 2018 was primarily due to seasonally higher average balances of inventory finance loans and higher average balances of fixed-rate consumer real estate loans, partially offset by increased cost of funds and lower average balances of auto finance loans. The decreases in net interest margin from both periods were primarily due to higher average rates on deposits, partially offset by higher average yields on the variable- and adjustable-rate loan portfolios. The decreases were also driven by the reinvestment of the auto finance portfolio run-off into available for sale mortgage-backed debt securities and fixed-rate consumer real estate loans.
Non-interest Income
Non-interest income was $107.0 million for the first quarter of 2019, a decrease of $5.2 million, or 4.6%, from the first quarter of 2018 and a decrease of $21.1 million, or 16.5%, from the fourth quarter of 2018. The decrease from the first quarter of 2018 was primarily due to a decrease in servicing fee income driven by continued run-off in the auto finance serviced for others portfolio and a decrease in gains on sales of loans. The decrease from the fourth quarter of 2018 was primarily due to a decrease in leasing and equipment finance non-interest income driven by customer-driven activity and a decrease in fees and service charges.
Non-interest Expense
Non-interest expense was $253.1 million for the first quarter of 2019, an increase of $7.1 million, or 2.9%, from the first quarter of 2018 and an increase of $3.1 million, or 1.2%, from the fourth quarter of 2018. The increases in non-interest expense from both periods were primarily due to merger-related expenses of $9.5 million for the proposed merger with Chemical Financial Corporation. Non-interest expense excluding merger-related expenses was $243.6 million for the first quarter of 2019, a decrease of $2.4 million, or 1.0%, from the first quarter of 2018 and a decrease of $6.3 million, or 2.5%, from the fourth quarter of 2018 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables). The decreases in non-interest expense excluding merger-related expenses from both periods were primarily due to decreases in compensation and employee benefits expense. The decrease in compensation and employee benefits expense from the fourth quarter of 2018 was primarily due to a large medical claim of $6.8 million recorded in the fourth quarter of 2018.
Credit Quality
Provision for credit losses The provision for credit losses was $10.1 million for the first quarter of 2019, a decrease of $1.2 million, or 11.0%, from the first quarter of 2018 and a decrease of $8.8 million, or 46.4%, from the fourth quarter of 2018. The decreases from both periods were primarily due to decreases in the provision for credit losses attributable to the commercial portfolio. The decrease from the first quarter of 2018 was partially offset by an increase in the provision for credit losses attributable to the inventory finance portfolio.
Net charge-off rate The annualized net charge-off rate was 0.39% for the first quarter of 2019, up 10 basis points from the first quarter of 2018 and down 7 basis points from the fourth quarter of 2018. The increase from the first quarter of 2018 was primarily due to increased net charge-offs in the commercial, inventory finance and leasing and equipment finance portfolios, partially offset by decreased net charge-offs in the consumer real estate portfolio. The decrease from the fourth quarter of 2018 was primarily due to decreased net charge-offs in the inventory finance and commercial portfolios. The annualized net charge-off rate excluding auto finance net charge-offs was 0.20% for the first quarter of 2019, up 11 basis points from the first quarter of 2018 and down 8 basis points from the fourth quarter of 2018 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).
Over 60-day delinquency rate The over 60-day delinquency rate, excluding non-accrual loans and leases, was 0.12% at March 31, 2019, up 2 basis points from the March 31, 2018 rate and down 3 basis points from the December 31, 2018 rate. The increase from March 31, 2018 was primarily due to higher delinquencies in the leasing and equipment finance portfolio. The decrease from December 31, 2018 was primarily due to lower delinquencies in the auto finance portfolio.
Non-performing assets Non-performing assets, consisting of non-accrual loans and leases and other real estate owned, were $121.6 million at March 31, 2019, a decrease of $22.0 million, or 15.3%, from March 31, 2018 and a decrease of $1.7 million, or 1.4%, from December 31, 2018. The decrease from March 31, 2018 was primarily due to a decrease in consumer real estate non-accrual loans. The decrease from December 31, 2018 was primarily due to decreases in commercial and inventory finance non-accrual loans, partially offset by increases in consumer real estate and leasing and equipment finance non-accrual loans and leases.
Balance Sheet
Average debt securities held to maturity and debt securities available for sale The total average debt securities portfolio was $2.8 billion for the first quarter of 2019, an increase of $823.1 million, or 41.9%, from the first quarter of 2018 and an increase of $67.3 million, or 2.5%, from the fourth quarter of 2018. The increases from both periods were primarily due to purchases of available for sale mortgage-backed debt securities, partially offset by sales of available for sale obligations of states and political subdivisions debt securities.
Average loans and leases Average loans and leases were $19.2 billion for the first quarter of 2019, a decrease of $67.2 million, or 0.3%, from the first quarter of 2018 and an increase of $631.6 million, or 3.4%, from the fourth quarter of 2018. The decrease from the first quarter of 2018 was primarily due to run-off of the auto finance portfolio, partially offset by increases in the consumer real estate, inventory finance and commercial loan portfolios. The increase from the fourth quarter of 2018 was primarily due to increases in the inventory finance and consumer real estate loan portfolios, partially offset by run-off of the auto finance portfolio. Average loans and leases excluding auto finance were $17.3 billion for the first quarter of 2019, an increase of $1.1 billion, or 6.8%, from the first quarter of 2018 and an increase of $912.5 million, or 5.6%, from the fourth quarter of 2018 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).
Average deposits Average deposits were $18.7 billion for the first quarter of 2019, an increase of $445.1 million, or 2.4%, from the first quarter of 2018 and an increase of $277.4 million, or 1.5%, from the fourth quarter of 2018. The increases from both periods were primarily due to increases in savings account balances, partially offset by decreases in certificates of deposit balances.
Capital TCF continues to maintain strong capital ratios, with a common equity Tier 1 capital ratio of 10.79%. TCF did not repurchase any shares of its common stock during the quarter and had the authority to repurchase $78.1 million in aggregate value of shares at March 31, 2019, pursuant to its share repurchase program.
TCF is a Wayzata, Minnesota-based national bank holding company. As of March 31, 2019, TCF had $24.4 billion in total assets and 312 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, including 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, 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.
Use of Non-GAAP Financial Measures
Management uses the adjusted diluted earnings per common share, adjusted ROACE, ROATCE, adjusted ROATCE, adjusted efficiency ratio, net charge-off rate excluding auto finance, 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 Company's capital and ability to withstand unexpected market or economic conditions and to assess the performance of the Company 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 as management believes it is useful to investors in understanding TCF's business and operating results. In addition, TCF adjusts certain results to exclude auto finance because TCF no longer originates auto finance loans, and therefore management believes it is 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 company, 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 stockholders.
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||
Consolidated Statements of Financial Condition (Unaudited) | ||||||||||||||||||||||||||||||||||
Change From | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, 2018 | Mar. 31, 2018 | |||||||||||||||||||||||||||
2019 | 2018 | 2018 | 2018 | 2018 | $ | % | $ | % | ||||||||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 463,822 | $ | 587,057 | $ | 569,968 | $ | 581,876 | $ | 588,893 | $ | (123,235 | ) | (21.0 | )% | $ | (125,071 | ) | (21.2 | )% | ||||||||||||||
Investments | 103,644 | 91,654 | 80,672 | 95,661 | 91,661 | 11,990 | 13.1 | 11,983 | 13.1 | |||||||||||||||||||||||||
Debt securities held to maturity | 148,024 | 148,852 | 152,881 | 155,962 | 158,099 | (828 | ) | (0.6 | ) | (10,075 | ) | (6.4 | ) | |||||||||||||||||||||
Debt securities available for sale | 2,945,342 | 2,470,065 | 2,379,546 | 2,249,784 | 1,954,246 | 475,277 | 19.2 | 991,096 | 50.7 | |||||||||||||||||||||||||
Loans and leases held for sale | 64,468 | 90,664 | 114,198 | 291,871 | 50,706 | (26,196 | ) | (28.9 | ) | 13,762 | 27.1 | |||||||||||||||||||||||
Loans and leases: | ||||||||||||||||||||||||||||||||||
Consumer real estate: | ||||||||||||||||||||||||||||||||||
First mortgage lien | 2,480,750 | 2,444,380 | 1,960,756 | 1,800,885 | 1,878,441 | 36,370 | 1.5 | 602,309 | 32.1 | |||||||||||||||||||||||||
Junior lien | 2,872,807 | 2,965,960 | 2,940,701 | 2,830,029 | 2,843,221 | (93,153 | ) | (3.1 | ) | 29,586 | 1.0 | |||||||||||||||||||||||
Total consumer real estate | 5,353,557 | 5,410,340 | 4,901,457 | 4,630,914 | 4,721,662 | (56,783 | ) | (1.0 | ) | 631,895 | 13.4 | |||||||||||||||||||||||
Commercial | 3,884,106 | 3,851,303 | 3,741,164 | 3,706,401 | 3,678,181 | 32,803 | 0.9 | 205,925 | 5.6 | |||||||||||||||||||||||||
Leasing and equipment finance | 4,674,309 | 4,699,740 | 4,601,887 | 4,648,049 | 4,666,239 | (25,431 | ) | (0.5 | ) | 8,070 | 0.2 | |||||||||||||||||||||||
Inventory finance | 3,749,146 | 3,107,356 | 2,880,404 | 3,005,165 | 3,457,855 | 641,790 | 20.7 | 291,291 | 8.4 | |||||||||||||||||||||||||
Auto finance | 1,704,614 | 1,982,277 | 2,275,134 | 2,603,260 | 2,839,363 | (277,663 | ) | (14.0 | ) | (1,134,749 | ) | (40.0 | ) | |||||||||||||||||||||
Other | 17,943 | 21,295 | 21,107 | 20,957 | 19,854 | (3,352 | ) | (15.7 | ) | (1,911 | ) | (9.6 | ) | |||||||||||||||||||||
Total loans and leases | 19,383,675 | 19,072,311 | 18,421,153 | 18,614,746 | 19,383,154 | 311,364 | 1.6 | 521 | ? | |||||||||||||||||||||||||
Allowance for loan and lease losses | (147,972 | ) | (157,446 | ) | (160,621 | ) | (165,619 | ) | (167,703 | ) | 9,474 | 6.0 | 19,731 | 11.8 | ||||||||||||||||||||
Net loans and leases | 19,235,703 | 18,914,865 | 18,260,532 | 18,449,127 | 19,215,451 | 320,838 | 1.7 | 20,252 | 0.1 | |||||||||||||||||||||||||
Premises and equipment, net | 429,711 | 427,534 | 429,648 | 430,956 | 427,497 | 2,177 | 0.5 | 2,214 | 0.5 | |||||||||||||||||||||||||
Goodwill, net | 154,757 | 154,757 | 154,757 | 154,757 | 154,757 | ? | ? | ? | ? | |||||||||||||||||||||||||
Other assets | 873,244 | 814,164 | 762,583 | 774,468 | 743,742 | 59,080 | 7.3 | 129,502 | 17.4 | |||||||||||||||||||||||||
Total assets | $ | 24,418,715 | $ | 23,699,612 | $ | 22,904,785 | $ | 23,184,462 | $ | 23,385,052 | $ | 719,103 | 3.0 | $ | 1,033,663 | 4.4 | ||||||||||||||||||
LIABILITIES AND EQUITY: | ||||||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||||
Checking | $ | 6,621,261 | $ | 6,381,327 | $ | 6,382,667 | $ | 6,408,174 | $ | 6,541,409 | $ | 239,934 | 3.8 | % | $ | 79,852 | 1.2 | % | ||||||||||||||||
Savings | 6,442,544 | 6,122,257 | 5,737,144 | 5,570,979 | 5,551,155 | 320,287 | 5.2 | 891,389 | 16.1 | |||||||||||||||||||||||||
Money market | 1,468,308 | 1,609,422 | 1,504,952 | 1,562,008 | 1,609,472 | (141,114 | ) | (8.8 | ) | (141,164 | ) | (8.8 | ) | |||||||||||||||||||||
Certificates of deposit | 4,491,998 | 4,790,680 | 4,871,748 | 4,822,112 | 4,995,636 | (298,682 | ) | (6.2 | ) | (503,638 | ) | (10.1 | ) | |||||||||||||||||||||
Total deposits | 19,024,111 | 18,903,686 | 18,496,511 | 18,363,273 | 18,697,672 | 120,425 | 0.6 | 326,439 | 1.7 | |||||||||||||||||||||||||
Borrowings: | ||||||||||||||||||||||||||||||||||
Short-term borrowings | 355,992 | ? | 2,324 | 761 | 775 | 355,992 | N.M. | 355,217 | N.M. | |||||||||||||||||||||||||
Long-term borrowings | 1,411,426 | 1,449,472 | 1,168,400 | 1,554,569 | 1,457,976 | (38,046 | ) | (2.6 | ) | (46,550 | ) | (3.2 | ) | |||||||||||||||||||||
Total borrowings | 1,767,418 | 1,449,472 | 1,170,724 | 1,555,330 | 1,458,751 | 317,946 | 21.9 | 308,667 | 21.2 | |||||||||||||||||||||||||
Accrued expenses and other liabilities | 981,341 | 790,194 | 709,538 | 761,281 | 677,679 | 191,147 | 24.2 | 303,662 | 44.8 | |||||||||||||||||||||||||
Total liabilities | 21,772,870 | 21,143,352 | 20,376,773 | 20,679,884 | 20,834,102 | 629,518 | 3.0 | 938,768 | 4.5 | |||||||||||||||||||||||||
Equity: | ||||||||||||||||||||||||||||||||||
Preferred stock | 169,302 | 169,302 | 169,302 | 169,302 | 169,302 | ? | ? | ? | ? | |||||||||||||||||||||||||
Common stock | 1,733 | 1,736 | 1,736 | 1,735 | 1,725 | (3 | ) | (0.2 | ) | 8 | 0.5 | |||||||||||||||||||||||
Additional paid-in capital | 875,797 | 885,089 | 882,321 | 877,364 | 878,096 | (9,292 | ) | (1.0 | ) | (2,299 | ) | (0.3 | ) | |||||||||||||||||||||
Retained earnings, subject to certain restrictions | 1,810,701 | 1,766,994 | 1,708,410 | 1,649,449 | 1,618,041 | 43,707 | 2.5 | 192,660 | 11.9 | |||||||||||||||||||||||||
Accumulated other comprehensive income (loss) | 5,481 | (33,138 | ) | (65,259 | ) | (52,811 | ) | (46,851 | ) | 38,619 | N.M. | 52,332 | N.M. | |||||||||||||||||||||
Treasury stock at cost and other | (246,621 | ) | (252,182 | ) | (189,652 | ) | (164,107 | ) | (97,800 | ) | 5,561 | 2.2 | (148,821 | ) | (152.2 | ) | ||||||||||||||||||
Total TCF Financial Corporation stockholders' equity | 2,616,393 | 2,537,801 | 2,506,858 | 2,480,932 | 2,522,513 | 78,592 | 3.1 | 93,880 | 3.7 | |||||||||||||||||||||||||
Non-controlling interest in subsidiaries | 29,452 | 18,459 | 21,154 | 23,646 | 28,437 | 10,993 | 59.6 | 1,015 | 3.6 | |||||||||||||||||||||||||
Total equity | 2,645,845 | 2,556,260 | 2,528,012 | 2,504,578 | 2,550,950 | 89,585 | 3.5 | 94,895 | 3.7 | |||||||||||||||||||||||||
Total liabilities and equity | $ | 24,418,715 | $ | 23,699,612 | $ | 22,904,785 | $ | 23,184,462 | $ | 23,385,052 | $ | 719,103 | 3.0 | $ | 1,033,663 | 4.4 | ||||||||||||||||||
N.M. Not Meaningful |
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||
Consolidated Statements of Income (Unaudited) | ||||||||||||||||||||||||||||||||||
Quarter Ended | Change From | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, 2018 | Mar. 31, 2018 | |||||||||||||||||||||||||||
2019 | 2018 | 2018 | 2018 | 2018 | $ | % | $ | % | ||||||||||||||||||||||||||
Interest income: | ||||||||||||||||||||||||||||||||||
Loans and leases | $ | 279,594 | $ | 270,804 | $ | 264,678 | $ | 269,280 | $ | 260,375 | $ | 8,790 | 3.2 | % | $ | 19,219 | 7.4 | % | ||||||||||||||||
Debt securities available for sale | 18,815 | 17,097 | 14,838 | 12,516 | 10,123 | 1,718 | 10.0 | 8,692 | 85.9 | |||||||||||||||||||||||||
Debt securities held to maturity | 535 | 965 | 988 | 998 | 1,019 | (430 | ) | (44.6 | ) | (484 | ) | (47.5 | ) | |||||||||||||||||||||
Loans held for sale and other | 4,301 | 4,631 | 6,678 | 3,529 | 3,745 | (330 | ) | (7.1 | ) | 556 | 14.8 | |||||||||||||||||||||||
Total interest income | 303,245 | 293,497 | 287,182 | 286,323 | 275,262 | 9,748 | 3.3 | 27,983 | 10.2 | |||||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||||||||
Deposits | 37,480 | 33,315 | 27,335 | 23,953 | 22,510 | 4,165 | 12.5 | 14,970 | 66.5 | |||||||||||||||||||||||||
Borrowings | 14,858 | 11,294 | 10,726 | 11,571 | 9,553 | 3,564 | 31.6 | 5,305 | 55.5 | |||||||||||||||||||||||||
Total interest expense | 52,338 | 44,609 | 38,061 | 35,524 | 32,063 | 7,729 | 17.3 | 20,275 | 63.2 | |||||||||||||||||||||||||
Net interest income | 250,907 | 248,888 | 249,121 | 250,799 | 243,199 | 2,019 | 0.8 | 7,708 | 3.2 | |||||||||||||||||||||||||
Provision for credit losses | 10,122 | 18,894 | 2,270 | 14,236 | 11,368 | (8,772 | ) | (46.4 | ) | (1,246 | ) | (11.0 | ) | |||||||||||||||||||||
Net interest income after provision for credit losses | 240,785 | 229,994 | 246,851 | 236,563 | 231,831 | 10,791 | 4.7 | 8,954 | 3.9 | |||||||||||||||||||||||||
Non-interest income: | ||||||||||||||||||||||||||||||||||
Leasing and equipment finance | 41,139 | 55,311 | 45,045 | 42,904 | 41,847 | (14,172 | ) | (25.6 | ) | (708 | ) | (1.7 | ) | |||||||||||||||||||||
Fees and service charges | 31,324 | 36,206 | 32,574 | 32,670 | 30,751 | (4,882 | ) | (13.5 | ) | 573 | 1.9 | |||||||||||||||||||||||
Card revenue | 14,243 | 15,078 | 15,065 | 14,962 | 13,759 | (835 | ) | (5.5 | ) | 484 | 3.5 | |||||||||||||||||||||||
ATM revenue | 4,440 | 5,054 | 5,053 | 4,933 | 4,650 | (614 | ) | (12.1 | ) | (210 | ) | (4.5 | ) | |||||||||||||||||||||
Gains on sales of loans, net | 7,972 | 8,419 | 8,764 | 7,192 | 9,123 | (447 | ) | (5.3 | ) | (1,151 | ) | (12.6 | ) | |||||||||||||||||||||
Servicing fee income | 5,110 | 5,523 | 6,032 | 7,484 | 8,295 | (413 | ) | (7.5 | ) | (3,185 | ) | (38.4 | ) | |||||||||||||||||||||
Gains (losses) on debt securities, net | 451 | 167 | 94 | 24 | 63 | 284 | 170.1 | 388 | N.M. | |||||||||||||||||||||||||
Other | 2,347 | 2,375 | 3,818 | 3,934 | 3,716 | (28 | ) | (1.2 | ) | (1,369 | ) | (36.8 | ) | |||||||||||||||||||||
Total non-interest income | 107,026 | 128,133 | 116,445 | 114,103 | 112,204 | (21,107 | ) | (16.5 | ) | (5,178 | ) | (4.6 | ) | |||||||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||||||||||||
Compensation and employee benefits | 121,557 | 129,521 | 123,127 | 120,575 | 123,840 | (7,964 | ) | (6.1 | ) | (2,283 | ) | (1.8 | ) | |||||||||||||||||||||
Occupancy and equipment | 41,737 | 42,250 | 42,337 | 40,711 | 40,514 | (513 | ) | (1.2 | ) | 1,223 | 3.0 | |||||||||||||||||||||||
Lease financing equipment depreciation | 19,256 | 19,085 | 19,525 | 17,945 | 17,274 | 171 | 0.9 | 1,982 | 11.5 | |||||||||||||||||||||||||
Foreclosed real estate and repossessed assets, net | 4,630 | 4,396 | 3,881 | 3,857 | 4,916 | 234 | 5.3 | (286 | ) | (5.8 | ) | |||||||||||||||||||||||
Merger-related expenses | 9,458 | ? | ? | ? | ? | 9,458 | N.M. | 9,458 | N.M. | |||||||||||||||||||||||||
Other | 56,437 | 54,706 | 57,553 | 88,951 | 59,436 | 1,731 | 3.2 | (2,999 | ) | (5.0 | ) | |||||||||||||||||||||||
Total non-interest expense | 253,075 | 249,958 | 246,423 | 272,039 | 245,980 | 3,117 | 1.2 | 7,095 | 2.9 | |||||||||||||||||||||||||
Income before income tax expense | 94,736 | 108,169 | 116,873 | 78,627 | 98,055 | (13,433 | ) | (12.4 | ) | (3,319 | ) | (3.4 | ) | |||||||||||||||||||||
Income tax expense | 21,287 | 20,013 | 28,034 | 16,418 | 21,631 | 1,274 | 6.4 | (344 | ) | (1.6 | ) | |||||||||||||||||||||||
Income after income tax expense | 73,449 | 88,156 | 88,839 | 62,209 | 76,424 | (14,707 | ) | (16.7 | ) | (2,975 | ) | (3.9 | ) | |||||||||||||||||||||
Income attributable to non-controlling interest | 2,955 | 2,504 | 2,643 | 3,460 | 2,663 | 451 | 18.0 | 292 | 11.0 | |||||||||||||||||||||||||
Net income attributable to TCF Financial Corporation | 70,494 | 85,652 | 86,196 | 58,749 | 73,761 | (15,158 | ) | (17.7 | ) | (3,267 | ) | (4.4 | ) | |||||||||||||||||||||
Preferred stock dividends | 2,493 | 2,494 | 2,494 | 2,494 | 4,106 | (1 | ) | ? | (1,613 | ) | (39.3 | ) | ||||||||||||||||||||||
Impact of preferred stock redemption | ? | ? | ? | ? | 3,481 | ? | ? | (3,481 | ) | (100.0 | ) | |||||||||||||||||||||||
Net income available to common stockholders | $ | 68,001 | $ | 83,158 | $ | 83,702 | $ | 56,255 | $ | 66,174 | $ | (15,157 | ) | (18.2 | ) | $ | 1,827 | 2.8 | ||||||||||||||||
N.M. Not Meaningful |
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||
Consolidated Average Balance Sheets, Yields and Rates (Unaudited) | ||||||||||||||||||||||
Quarter Ended March 31, | ||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||
Average | Yields and | Average | Yields and | |||||||||||||||||||
(Dollars in thousands) | Balance | Interest(1) | Rates(1)(2) | Balance | Interest(1) | Rates(1)(2) | ||||||||||||||||
ASSETS: | ||||||||||||||||||||||
Investments and other | $ | 366,691 | $ | 3,481 | 3.82 | % | $ | 332,319 | $ | 2,776 | 3.38 | % | ||||||||||
Debt securities held to maturity | 147,556 | 535 | 1.45 | 159,139 | 1,019 | 2.56 | ||||||||||||||||
Debt securities available for sale: | ||||||||||||||||||||||
Taxable | 2,121,196 | 16,131 | 3.04 | 981,843 | 5,813 | 2.37 | ||||||||||||||||
Tax-exempt(3) | 516,995 | 3,397 | 2.63 | 821,642 | 5,456 | 2.66 | ||||||||||||||||
Loans and leases held for sale | 55,204 | 820 | 6.01 | 63,095 | 969 | 6.22 | ||||||||||||||||
Loans and leases:(4) | ||||||||||||||||||||||
Consumer real estate: | ||||||||||||||||||||||
Fixed-rate | 2,352,758 | 29,887 | 5.12 | 1,786,636 | 24,613 | 5.58 | ||||||||||||||||
Variable- and adjustable-rate | 3,041,252 | 51,687 | 6.89 | 3,012,036 | 45,881 | 6.18 | ||||||||||||||||
Total consumer real estate | 5,394,010 | 81,574 | 6.12 | 4,798,672 | 70,494 | 5.96 | ||||||||||||||||
Commercial: | ||||||||||||||||||||||
Fixed-rate | 817,250 | 9,064 | 4.50 | 931,275 | 10,597 | 4.61 | ||||||||||||||||
Variable- and adjustable-rate | 3,012,206 | 43,532 | 5.86 | 2,669,745 | 33,160 | 5.04 | ||||||||||||||||
Total commercial | 3,829,456 | 52,596 | 5.57 | 3,601,020 | 43,757 | 4.93 | ||||||||||||||||
Leasing and equipment finance | 4,655,705 | 59,221 | 5.09 | 4,690,868 | 56,407 | 4.81 | ||||||||||||||||
Inventory finance | 3,454,283 | 62,865 | 7.38 | 3,128,290 | 51,195 | 6.64 | ||||||||||||||||
Auto finance | 1,841,130 | 24,215 | 5.33 | 3,020,187 | 39,285 | 5.28 | ||||||||||||||||
Other | 11,682 | 133 | 4.61 | 14,446 | 147 | 4.16 | ||||||||||||||||
Total loans and leases | 19,186,266 | 280,604 | 5.91 | 19,253,483 | 261,285 | 5.49 | ||||||||||||||||
Total interest-earning assets | 22,393,908 | 304,968 | 5.50 | 21,611,521 | 277,318 | 5.19 | ||||||||||||||||
Other assets | 1,713,033 | 1,453,742 | ||||||||||||||||||||
Total assets | $ | 24,106,941 | $ | 23,065,263 | ||||||||||||||||||
LIABILITIES AND EQUITY: | ||||||||||||||||||||||
Non-interest bearing deposits | $ | 3,919,746 | $ | 3,745,745 | ||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||
Checking | 2,457,767 | 387 | 0.06 | 2,461,548 | 113 | 0.02 | ||||||||||||||||
Savings | 6,253,992 | 10,670 | 0.69 | 5,395,669 | 3,165 | 0.24 | ||||||||||||||||
Money market | 1,490,631 | 4,453 | 1.21 | 1,698,064 | 2,409 | 0.58 | ||||||||||||||||
Certificates of deposit | 4,622,120 | 21,970 | 1.93 | 4,998,133 | 16,823 | 1.36 | ||||||||||||||||
Total interest-bearing deposits | 14,824,510 | 37,480 | 1.02 | 14,553,414 | 22,510 | 0.63 | ||||||||||||||||
Total deposits | 18,744,256 | 37,480 | 0.81 | 18,299,159 | 22,510 | 0.50 | ||||||||||||||||
Borrowings: | ||||||||||||||||||||||
Short-term borrowings | 293,499 | 1,957 | 2.67 | 3,952 | 19 | 1.99 | ||||||||||||||||
Long-term borrowings | 1,500,832 | 12,901 | 3.44 | 1,423,075 | 9,534 | 2.70 | ||||||||||||||||
Total borrowings | 1,794,331 | 14,858 | 3.31 | 1,427,027 | 9,553 | 2.70 | ||||||||||||||||
Total interest-bearing liabilities | 16,618,841 | 52,338 | 1.27 | 15,980,441 | 32,063 | 0.81 | ||||||||||||||||
Total deposits and borrowings | 20,538,587 | 52,338 | 1.03 | 19,726,186 | 32,063 | 0.66 | ||||||||||||||||
Accrued expenses and other liabilities | 989,104 | 758,157 | ||||||||||||||||||||
Total liabilities | 21,527,691 | 20,484,343 | ||||||||||||||||||||
Total TCF Financial Corporation stockholders' equity | 2,554,729 | 2,557,729 | ||||||||||||||||||||
Non-controlling interest in subsidiaries | 24,521 | 23,191 | ||||||||||||||||||||
Total equity | 2,579,250 | 2,580,920 | ||||||||||||||||||||
Total liabilities and equity | $ | 24,106,941 | $ | 23,065,263 | ||||||||||||||||||
Net interest income and margin | $ | 252,630 | 4.56 | $ | 245,255 | 4.59 |
(1) | Interest and yields are presented on a fully tax-equivalent basis. | |
(2) | Annualized | |
(3) | The yield on tax-exempt debt 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 non-accrual loans and leases and are presented net of unearned income. |
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||
Consolidated Quarterly Average Balance Sheets (Unaudited) | ||||||||||||||||||||||||||||||||||
Quarter Ended | Change From | |||||||||||||||||||||||||||||||||
Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, 2018 | Mar. 31, 2018 | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2019 | 2018 | 2018 | 2018 | 2018 | $ | % | $ | % | |||||||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||||||||||||||
Investments and other | $ | 366,691 | $ | 330,359 | $ | 306,257 | $ | 309,120 | $ | 332,319 | $ | 36,332 | 11.0 | % | $ | 34,372 | 10.3 | % | ||||||||||||||||
Debt securities held to maturity | 147,556 | 150,016 | 153,652 | 155,779 | 159,139 | (2,460 | ) | (1.6 | ) | (11,583 | ) | (7.3 | ) | |||||||||||||||||||||
Debt securities available for sale: | ||||||||||||||||||||||||||||||||||
Taxable | 2,121,196 | 1,779,654 | 1,525,665 | 1,262,642 | 981,843 | 341,542 | 19.2 | 1,139,353 | 116.0 | |||||||||||||||||||||||||
Tax-exempt | 516,995 | 788,806 | 823,854 | 828,131 | 821,642 | (271,811 | ) | (34.5 | ) | (304,647 | ) | (37.1 | ) | |||||||||||||||||||||
Loans and leases held for sale | 55,204 | 86,169 | 216,669 | 45,525 | 63,095 | (30,965 | ) | (35.9 | ) | (7,891 | ) | (12.5 | ) | |||||||||||||||||||||
Loans and leases:(1) | ||||||||||||||||||||||||||||||||||
Consumer real estate: | ||||||||||||||||||||||||||||||||||
Fixed-rate | 2,352,758 | 1,962,804 | 1,694,661 | 1,715,289 | 1,786,636 | 389,954 | 19.9 | 566,122 | 31.7 | |||||||||||||||||||||||||
Variable- and adjustable-rate | 3,041,252 | 3,067,216 | 3,002,225 | 3,026,310 | 3,012,036 | (25,964 | ) | (0.8 | ) | 29,216 | 1.0 | |||||||||||||||||||||||
Total consumer real estate | 5,394,010 | 5,030,020 | 4,696,886 | 4,741,599 | 4,798,672 | 363,990 | 7.2 | 595,338 | 12.4 | |||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||||||
Fixed-rate | 817,250 | 815,626 | 856,324 | 900,462 | 931,275 | 1,624 | 0.2 | (114,025 | ) | (12.2 | ) | |||||||||||||||||||||||
Variable- and adjustable-rate | 3,012,206 | 2,932,739 | 2,921,471 | 2,802,059 | 2,669,745 | 79,467 | 2.7 | 342,461 | 12.8 | |||||||||||||||||||||||||
Total commercial | 3,829,456 | 3,748,365 | 3,777,795 | 3,702,521 | 3,601,020 | 81,091 | 2.2 | 228,436 | 6.3 | |||||||||||||||||||||||||
Leasing and equipment finance | 4,655,705 | 4,616,715 | 4,624,968 | 4,639,703 | 4,690,868 | 38,990 | 0.8 | (35,163 | ) | (0.7 | ) | |||||||||||||||||||||||
Inventory finance | 3,454,283 | 3,024,961 | 2,866,460 | 3,299,996 | 3,128,290 | 429,322 | 14.2 | 325,993 | 10.4 | |||||||||||||||||||||||||
Auto finance | 1,841,130 | 2,121,969 | 2,435,868 | 2,695,943 | 3,020,187 | (280,839 | ) | (13.2 | ) | (1,179,057 | ) | (39.0 | ) | |||||||||||||||||||||
Other | 11,682 | 12,599 | 13,547 | 13,845 | 14,446 | (917 | ) | (7.3 | ) | (2,764 | ) | (19.1 | ) | |||||||||||||||||||||
Total loans and leases | 19,186,266 | 18,554,629 | 18,415,524 | 19,093,607 | 19,253,483 | 631,637 | 3.4 | (67,217 | ) | (0.3 | ) | |||||||||||||||||||||||
Total interest-earning assets | 22,393,908 | 21,689,633 | 21,441,621 | 21,694,804 | 21,611,521 | 704,275 | 3.2 | 782,387 | 3.6 | |||||||||||||||||||||||||
Other assets | 1,713,033 | 1,464,620 | 1,462,783 | 1,430,621 | 1,453,742 | 248,413 | 17.0 | 259,291 | 17.8 | |||||||||||||||||||||||||
Total assets | $ | 24,106,941 | $ | 23,154,253 | $ | 22,904,404 | $ | 23,125,425 | $ | 23,065,263 | $ | 952,688 | 4.1 | $ | 1,041,678 | 4.5 | ||||||||||||||||||
LIABILITIES AND EQUITY: | ||||||||||||||||||||||||||||||||||
Non-interest bearing deposits | $ | 3,919,746 | $ | 3,873,023 | $ | 3,874,421 | $ | 3,879,048 | $ | 3,745,745 | $ | 46,723 | 1.2 | % | $ | 174,001 | 4.6 | % | ||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||
Checking | 2,457,767 | 2,403,370 | 2,427,288 | 2,460,709 | 2,461,548 | 54,397 | 2.3 | (3,781 | ) | (0.2 | ) | |||||||||||||||||||||||
Savings | 6,253,992 | 5,922,724 | 5,620,161 | 5,542,565 | 5,395,669 | 331,268 | 5.6 | 858,323 | 15.9 | |||||||||||||||||||||||||
Money market | 1,490,631 | 1,449,531 | 1,496,223 | 1,572,560 | 1,698,064 | 41,100 | 2.8 | (207,433 | ) | (12.2 | ) | |||||||||||||||||||||||
Certificates of deposit | 4,622,120 | 4,818,211 | 4,868,286 | 4,909,422 | 4,998,133 | (196,091 | ) | (4.1 | ) | (376,013 | ) | (7.5 | ) | |||||||||||||||||||||
Total interest-bearing deposits | 14,824,510 | 14,593,836 | 14,411,958 | 14,485,256 | 14,553,414 | 230,674 | 1.6 | 271,096 | 1.9 | |||||||||||||||||||||||||
Total deposits | 18,744,256 | 18,466,859 | 18,286,379 | 18,364,304 | 18,299,159 | 277,397 | 1.5 | 445,097 | 2.4 | |||||||||||||||||||||||||
Borrowings: | ||||||||||||||||||||||||||||||||||
Short-term borrowings | 293,499 | 2,738 | 3,357 | 3,116 | 3,952 | 290,761 | N.M. | 289,547 | N.M. | |||||||||||||||||||||||||
Long-term borrowings | 1,500,832 | 1,344,228 | 1,351,585 | 1,531,389 | 1,423,075 | 156,604 | 11.7 | 77,757 | 5.5 | |||||||||||||||||||||||||
Total borrowings | 1,794,331 | 1,346,966 | 1,354,942 | 1,534,505 | 1,427,027 | 447,365 | 33.2 | 367,304 | 25.7 | |||||||||||||||||||||||||
Total interest-bearing liabilities | 16,618,841 | 15,940,802 | 15,766,900 | 16,019,761 | 15,980,441 | 678,039 | 4.3 | 638,400 | 4.0 | |||||||||||||||||||||||||
Total deposits and borrowings | 20,538,587 | 19,813,825 | 19,641,321 | 19,898,809 | 19,726,186 | 724,762 | 3.7 | 812,401 | 4.1 | |||||||||||||||||||||||||
Accrued expenses and other liabilities | 989,104 | 822,558 | 751,100 | 714,488 | 758,157 | 166,546 | 20.2 | 230,947 | 30.5 | |||||||||||||||||||||||||
Total liabilities | 21,527,691 | 20,636,383 | 20,392,421 | 20,613,297 | 20,484,343 | 891,308 | 4.3 | 1,043,348 | 5.1 | |||||||||||||||||||||||||
Total TCF Financial Corporation stockholders' equity | 2,554,729 | 2,495,952 | 2,488,435 | 2,483,474 | 2,557,729 | 58,777 | 2.4 | (3,000 | ) | (0.1 | ) | |||||||||||||||||||||||
Non-controlling interest in subsidiaries | 24,521 | 21,918 | 23,548 | 28,654 | 23,191 | 2,603 | 11.9 | 1,330 | 5.7 | |||||||||||||||||||||||||
Total equity | 2,579,250 | 2,517,870 | 2,511,983 | 2,512,128 | 2,580,920 | 61,380 | 2.4 | (1,670 | ) | (0.1 | ) | |||||||||||||||||||||||
Total liabilities and equity | $ | 24,106,941 | $ | 23,154,253 | $ | 22,904,404 | $ | 23,125,425 | $ | 23,065,263 | $ | 952,688 | 4.1 | $ | 1,041,678 | 4.5 |
N.M. Not Meaningful | ||
(1) | Average balances of loans and leases include non-accrual loans and leases and are presented net of unearned income. |
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||
Consolidated Quarterly Yields and Rates(1)(2) (Unaudited) | |||||||||||||||||||||||
Quarter Ended | Change From | ||||||||||||||||||||||
Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Mar. 31, | |||||||||||||||||
2019 | 2018 | 2018 | 2018 | 2018 | 2018 | 2018 | |||||||||||||||||
ASSETS: | |||||||||||||||||||||||
Investments and other | 3.82 | % | 3.90 | % | 4.01 | % | 3.71 | % | 3.38 | % | (8 | ) | bps | 44 | bps | ||||||||
Debt securities held to maturity | 1.45 | 2.58 | 2.57 | 2.56 | 2.56 | (113 | ) | (111 | ) | ||||||||||||||
Debt securities available for sale: | |||||||||||||||||||||||
Taxable | 3.04 | 2.91 | 2.76 | 2.59 | 2.37 | 13 | 67 | ||||||||||||||||
Tax-exempt(3) | 2.63 | 2.66 | 2.66 | 2.66 | 2.66 | (3 | ) | (3 | ) | ||||||||||||||
Loans and leases held for sale | 6.01 | 6.40 | 6.57 | 5.93 | 6.22 | (39 | ) | (21 | ) | ||||||||||||||
Loans and leases: | |||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||
Fixed-rate | 5.12 | 5.33 | 5.46 | 5.52 | 5.58 | (21 | ) | (46 | ) | ||||||||||||||
Variable- and adjustable-rate | 6.89 | 6.77 | 6.57 | 6.41 | 6.18 | 12 | 71 | ||||||||||||||||
Total consumer real estate | 6.12 | 6.21 | 6.17 | 6.09 | 5.96 | (9 | ) | 16 | |||||||||||||||
Commercial: | |||||||||||||||||||||||
Fixed-rate | 4.50 | 4.51 | 4.55 | 4.49 | 4.61 | (1 | ) | (11 | ) | ||||||||||||||
Variable- and adjustable-rate | 5.86 | 5.65 | 5.45 | 5.45 | 5.04 | 21 | 82 | ||||||||||||||||
Total commercial | 5.57 | 5.40 | 5.25 | 5.21 | 4.93 | 17 | 64 | ||||||||||||||||
Leasing and equipment finance | 5.09 | 5.11 | 5.00 | 4.93 | 4.81 | (2 | ) | 28 | |||||||||||||||
Inventory finance | 7.38 | 7.11 | 7.16 | 6.94 | 6.64 | 27 | 74 | ||||||||||||||||
Auto finance | 5.33 | 5.39 | 5.36 | 5.30 | 5.28 | (6 | ) | 5 | |||||||||||||||
Other | 4.61 | 4.55 | 4.25 | 4.10 | 4.16 | 6 | 45 | ||||||||||||||||
Total loans and leases | 5.91 | 5.82 | 5.73 | 5.67 | 5.49 | 9 | 42 | ||||||||||||||||
Total interest-earning assets | 5.50 | 5.42 | 5.36 | 5.33 | 5.19 | 8 | 31 | ||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||
Checking | 0.06 | 0.04 | 0.04 | 0.02 | 0.02 | 2 | 4 | ||||||||||||||||
Savings | 0.69 | 0.54 | 0.35 | 0.27 | 0.24 | 15 | 45 | ||||||||||||||||
Money market | 1.21 | 0.99 | 0.78 | 0.67 | 0.58 | 22 | 63 | ||||||||||||||||
Certificates of deposit | 1.93 | 1.76 | 1.56 | 1.43 | 1.36 | 17 | 57 | ||||||||||||||||
Total interest-bearing deposits | 1.02 | 0.91 | 0.75 | 0.66 | 0.63 | 11 | 39 | ||||||||||||||||
Total deposits | 0.81 | 0.72 | 0.59 | 0.52 | 0.50 | 9 | 31 | ||||||||||||||||
Borrowings: | |||||||||||||||||||||||
Short-term borrowings | 2.67 | 2.76 | 2.46 | 2.33 | 1.99 | (9 | ) | 68 | |||||||||||||||
Long-term borrowings | 3.44 | 3.34 | 3.15 | 3.02 | 2.70 | 10 | 74 | ||||||||||||||||
Total borrowings | 3.31 | 3.34 | 3.15 | 3.02 | 2.70 | (3 | ) | 61 | |||||||||||||||
Total interest-bearing liabilities | 1.27 | 1.11 | 0.96 | 0.89 | 0.81 | 16 | 46 | ||||||||||||||||
Net interest margin | 4.56 | 4.60 | 4.66 | 4.67 | 4.59 | (4 | ) | (3 | ) |
(1) | Annualized | |
(2) | Yields are presented on a fully tax-equivalent basis. | |
(3) | The yield on tax-exempt debt securities available for sale is computed on a tax-equivalent basis using a statutory federal income tax rate of 21%. |
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||
Summary of Credit Quality Data (Unaudited) | ||||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses | ||||||||||||||||||||||||||||||||||
At Mar. 31, | At Dec. 31, | At Sep. 30, | At Jun. 30, | At Mar. 31, | ||||||||||||||||||||||||||||||
2019 | 2018 | 2018 | 2018 | 2018 | ||||||||||||||||||||||||||||||
% of | % of | % of | % of | % of | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Balance | Portfolio | Balance | Portfolio | Balance | Portfolio | Balance | Portfolio | Balance | Portfolio | ||||||||||||||||||||||||
Consumer real estate | $ | 43,820 | 0.82 | % | $ | 44,866 | 0.83 | % | $ | 45,258 | 0.92 | % | $ | 43,954 | 0.95 | % | $ | 47,685 | 1.01 | % | ||||||||||||||
Commercial | 34,711 | 0.89 | 41,182 | 1.07 | 40,470 | 1.08 | 40,291 | 1.09 | 37,198 | 1.01 | ||||||||||||||||||||||||
Leasing and equipment finance | 24,832 | 0.53 | 23,791 | 0.51 | 22,926 | 0.50 | 22,247 | 0.48 | 23,182 | 0.50 | ||||||||||||||||||||||||
Inventory finance | 14,132 | 0.38 | 12,456 | 0.40 | 11,361 | 0.39 | 11,840 | 0.39 | 13,253 | 0.38 | ||||||||||||||||||||||||
Auto finance | 29,854 | 1.75 | 34,329 | 1.73 | 39,852 | 1.75 | 46,608 | 1.79 | 45,822 | 1.61 | ||||||||||||||||||||||||
Other | 623 | 3.47 | 822 | 3.86 | 754 | 3.57 | 679 | 3.24 | 563 | 2.84 | ||||||||||||||||||||||||
Total | $ | 147,972 | 0.76 | $ | 157,446 | 0.83 | $ | 160,621 | 0.87 | $ | 165,619 | 0.89 | $ | 167,703 | 0.87 |
Changes in Allowance for Loan and Lease Losses | ||||||||||||||||||||||||||||
Quarter Ended | Change From | |||||||||||||||||||||||||||
Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Mar. 31, | ||||||||||||||||||||||
(In thousands) | 2019 | 2018 | 2018 | 2018 | 2018 | 2018 | 2018 | |||||||||||||||||||||
Balance, beginning of period | $ | 157,446 | $ | 160,621 | $ | 165,619 | $ | 167,703 | $ | 171,041 | $ | (3,175 | ) | $ | (13,595 | ) | ||||||||||||
Charge-offs | (24,431 | ) | (27,227 | ) | (19,448 | ) | (18,188 | ) | (19,865 | ) | 2,796 | (4,566 | ) | |||||||||||||||
Recoveries | 5,777 | 5,913 | 12,658 | 5,418 | 5,714 | (136 | ) | 63 | ||||||||||||||||||||
Net (charge-offs) recoveries | (18,654 | ) | (21,314 | ) | (6,790 | ) | (12,770 | ) | (14,151 | ) | 2,660 | (4,503 | ) | |||||||||||||||
Provision for credit losses | 10,122 | 18,894 | 2,270 | 14,236 | 11,368 | (8,772 | ) | (1,246 | ) | |||||||||||||||||||
Other | (942 | ) | (755 | ) | (478 | ) | (3,550 | ) | (555 | ) | (187 | ) | (387 | ) | ||||||||||||||
Balance, end of period | $ | 147,972 | $ | 157,446 | $ | 160,621 | $ | 165,619 | $ | 167,703 | $ | (9,474 | ) | $ | (19,731 | ) |
Net Charge-offs | |||||||||||||||||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||||||||||||||||
Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | |||||||||||||||||||||||||||||||
2019 | 2018 | 2018 | 2018 | 2018 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Balance | Rate(1) | Balance | Rate(1) | Balance | Rate(1) | Balance | Rate(1) | Balance | Rate(1) | |||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||||||||
First mortgage lien | $ | 628 | 0.10 | % | $ | 123 | 0.02 | % | $ | (3,721 | ) | (0.82 | )% | $ | 714 | 0.16 | % | $ | 790 | 0.16 | % | ||||||||||||||
Junior lien | (180 | ) | (0.02 | ) | (210 | ) | (0.03 | ) | (2,709 | ) | (0.37 | ) | 64 | 0.01 | 327 | 0.05 | |||||||||||||||||||
Total consumer real estate | 448 | 0.03 | (87 | ) | (0.01 | ) | (6,430 | ) | (0.55 | ) | 778 | 0.07 | 1,117 | 0.09 | |||||||||||||||||||||
Commercial | 2,088 | 0.22 | 3,406 | 0.36 | (8 | ) | ? | (27 | ) | ? | (14 | ) | ? | ||||||||||||||||||||||
Leasing and equipment finance | 2,470 | 0.21 | 2,067 | 0.18 | 1,930 | 0.17 | 2,106 | 0.18 | 1,340 | 0.11 | |||||||||||||||||||||||||
Inventory finance | 2,087 | 0.24 | 4,629 | 0.61 | 637 | 0.09 | 517 | 0.06 | 409 | 0.05 | |||||||||||||||||||||||||
Auto finance | 10,182 | 2.21 | 9,887 | 1.86 | 9,485 | 1.56 | 8,516 | 1.26 | 10,656 | 1.41 | |||||||||||||||||||||||||
Other | 1,379 | N.M. | 1,412 | N.M. | 1,176 | N.M. | 880 | N.M. | 643 | N.M. | |||||||||||||||||||||||||
Total | $ | 18,654 | 0.39 | $ | 21,314 | 0.46 | $ | 6,790 | 0.15 | $ | 12,770 | 0.27 | $ | 14,151 | 0.29 |
N.M. Not Meaningful | ||
(1) | Annualized net charge-off rate based on average loans and leases |
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||
Summary of Credit Quality Data (Unaudited), Continued | |||||||||||||||||||||||
Over 60-Day Delinquencies as a Percentage of Portfolio(1) | |||||||||||||||||||||||
Change From | |||||||||||||||||||||||
At Mar. 31, | At Dec. 31, | At Sep. 30, | At Jun. 30, | At Mar. 31, | Dec. 31, | Mar. 31, | |||||||||||||||||
2019 | 2018 | 2018 | 2018 | 2018 | 2018 | 2018 | |||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||
First mortgage lien | 0.20 | % | 0.19 | % | 0.18 | % | 0.20 | % | 0.23 | % | 1 | bps | (3 | ) | bps | ||||||||
Junior lien | 0.08 | 0.04 | 0.04 | 0.07 | 0.06 | 4 | 2 | ||||||||||||||||
Total consumer real estate | 0.14 | 0.11 | 0.10 | 0.12 | 0.13 | 3 | 1 | ||||||||||||||||
Commercial | ? | ? | ? | ? | ? | ? | ? | ||||||||||||||||
Leasing and equipment finance | 0.20 | 0.23 | 0.15 | 0.11 | 0.11 | (3 | ) | 9 | |||||||||||||||
Inventory finance | ? | 0.01 | ? | ? | ? | (1 | ) | ? | |||||||||||||||
Auto finance | 0.38 | 0.59 | 0.41 | 0.33 | 0.24 | (21 | ) | 14 | |||||||||||||||
Other | 0.11 | 0.14 | 0.30 | 0.16 | 0.24 | (3 | ) | (13 | ) | ||||||||||||||
Subtotal | 0.12 | 0.15 | 0.11 | 0.11 | 0.09 | (3 | ) | 3 | |||||||||||||||
Portfolios acquired with deteriorated credit quality | 6.75 | 4.65 | 16.70 | 13.48 | 12.95 | 210 | (620 | ) | |||||||||||||||
Total delinquencies | 0.12 | 0.15 | 0.12 | 0.11 | 0.10 | (3 | ) | 2 |
(1) | Excludes non-accrual loans and leases |
Non-performing Assets | ||||||||||||||||||||||||||||||
Change From | ||||||||||||||||||||||||||||||
At Mar. 31, | At Dec. 31, | At Sep. 30, | At Jun. 30, | At Mar. 31, | Dec. 31, | Mar. 31, | ||||||||||||||||||||||||
(Dollars in thousands) | 2019 | 2018 | 2018 | 2018 | 2018 | 2018 | 2018 | |||||||||||||||||||||||
Non-accrual loans and leases: | ||||||||||||||||||||||||||||||
Consumer real estate | $ | 65,518 | $ | 58,765 | $ | 55,092 | $ | 49,155 | $ | 84,237 | $ | 6,753 | $ | (18,719 | ) | |||||||||||||||
Commercial | 7,529 | 15,025 | 9,888 | 9,978 | 11,401 | (7,496 | ) | (3,872 | ) | |||||||||||||||||||||
Leasing and equipment finance | 20,235 | 15,264 | 16,061 | 16,300 | 19,968 | 4,971 | 267 | |||||||||||||||||||||||
Inventory finance | 969 | 8,283 | 1,640 | 2,093 | 3,621 | (7,314 | ) | (2,652 | ) | |||||||||||||||||||||
Auto finance | 9,033 | 8,578 | 7,613 | 7,312 | 7,199 | 455 | 1,834 | |||||||||||||||||||||||
Other | 1 | 3 | 2 | 21 | 2 | (2 | ) | (1 | ) | |||||||||||||||||||||
Total non-accrual loans and leases | 103,285 | 105,918 | 90,296 | 84,859 | 126,428 | (2,633 | ) | (23,143 | ) | |||||||||||||||||||||
Other real estate owned | 18,361 | 17,403 | 19,079 | 16,266 | 17,179 | 958 | 1,182 | |||||||||||||||||||||||
Total non-performing assets | $ | 121,646 | $ | 123,321 | $ | 109,375 | $ | 101,125 | $ | 143,607 | $ | (1,675 | ) | $ | (21,961 | ) | ||||||||||||||
Non-accrual loans and leases as a percentage of total loans and leases | 0.53 | % | 0.56 | % | 0.49 | % | 0.46 | % | 0.65 | % | (3 | ) | bps | (12 | ) | bps | ||||||||||||||
Non-performing assets as a percentage of total loans and leases and other real estate owned | 0.63 | 0.65 | 0.59 | 0.54 | 0.74 | (2 | ) | (11 | ) | |||||||||||||||||||||
Allowance for loan and lease losses as a percentage of non-accrual loans and leases | 143.27 | 148.65 | 177.88 | 195.17 | 132.65 | (538 | ) | 1,062 |
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||
Consolidated Capital Information (Unaudited) | ||||||||||||||||||||||||||||
At or For the Quarter Ended | Change From | |||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Mar. 31, | |||||||||||||||||||||
2019 | 2018 | 2018 | 2018 | 2018 | 2018 | 2018 | ||||||||||||||||||||||
Dividends declared per common share | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.15 | ? | % | ? | % | ||||||||||||||
Book value per common share | 14.93 | 14.45 | 14.01 | 13.79 | 13.89 | 3.3 | 7.5 | |||||||||||||||||||||
Tangible book value per common share(1) | 13.86 | 13.38 | 12.96 | 12.73 | 12.84 | 3.6 | 7.9 | |||||||||||||||||||||
Common equity to assets | 10.02 | % | 9.99 | % | 10.21 | % | 9.97 | % | 10.06 | % | 3 | bps | (4 | ) | bps | |||||||||||||
Tangible common equity to tangible assets(1) | 9.37 | 9.32 | 9.51 | 9.28 | 9.37 | 5 | ? | |||||||||||||||||||||
Regulatory Capital:(2) | ||||||||||||||||||||||||||||
Common equity Tier 1 capital | $ | 2,266,244 | $ | 2,224,183 | $ | 2,226,820 | $ | 2,186,528 | $ | 2,222,390 | 1.9 | % | 2.0 | % | ||||||||||||||
Tier 1 capital | 2,459,132 | 2,408,393 | 2,412,869 | 2,375,210 | 2,414,838 | 2.1 | 1.8 | |||||||||||||||||||||
Total capital | 2,792,419 | 2,750,581 | 2,754,615 | 2,728,076 | 2,786,637 | 1.5 | 0.2 | |||||||||||||||||||||
Common equity Tier 1 capital ratio | 10.79 | % | 10.82 | % | 11.04 | % | 10.60 | % | 10.57 | % | (3 | ) | bps | 22 | bps | |||||||||||||
Tier 1 risk-based capital ratio | 11.71 | 11.72 | 11.96 | 11.51 | 11.49 | (1 | ) | 22 | ||||||||||||||||||||
Total risk-based capital ratio | 13.30 | 13.38 | 13.66 | 13.22 | 13.26 | (8 | ) | 4 | ||||||||||||||||||||
Tier 1 leverage ratio | 10.26 | 10.44 | 10.58 | 10.31 | 10.52 | (18 | ) | (26 | ) |
(1) | See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables | |
(2) | March 31, 2019 amounts are preliminary pending completion and filing of the Company's regulatory reports |
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) | ||||||||||||||||||||
Computation of adjusted diluted earnings per common share: | ||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||
Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | ||||||||||||||||
(Dollars in thousands, except per share data) | 2019 | 2018 | 2018 | 2018 | 2018 | |||||||||||||||
Net income available to common stockholders | $ | 68,001 | $ | 83,158 | $ | 83,702 | $ | 56,255 | $ | 66,174 | ||||||||||
Less: Earnings allocated to participating securities | 13 | 12 | 13 | 8 | 9 | |||||||||||||||
Earnings allocated to common stock | (a) | 67,988 | 83,146 | 83,689 | 56,247 | 66,165 | ||||||||||||||
Plus: Merger-related expenses | 9,458 | ? | ? | ? | ? | |||||||||||||||
Plus: Consumer Financial Protection Bureau ("CFPB")/Office of the Comptroller of the Currency ("OCC") settlement adjustment | ? | ? | ? | 32,000 | ? | |||||||||||||||
Less: Related income tax expense | 2,252 | ? | ? | 6,491 | ? | |||||||||||||||
Adjusted earnings allocated to common stock | (b) | $ | 75,194 | $ | 83,146 | $ | 83,689 | $ | 81,756 | $ | 66,165 | |||||||||
Weighted-average common shares outstanding used in diluted earnings per common share calculation | (c) | 162,427,823 | 163,878,805 | 165,533,225 | 166,857,640 | 169,997,146 | ||||||||||||||
Diluted earnings per common share | (a) / (c) | $ | 0.42 | $ | 0.51 | $ | 0.51 | $ | 0.34 | $ | 0.39 | |||||||||
Adjusted diluted earnings per common share | (b) / (c) | 0.46 | 0.51 | 0.51 | 0.49 | 0.39 |
Computation of net charge-off rate excluding auto finance: | ||||||||||||||
Quarter Ended | ||||||||||||||
Mar. 31, | Dec. 31, | Mar. 31, | ||||||||||||
(Dollars in thousands) | 2019 | 2018 | 2018 | |||||||||||
Net charge-offs | (a) | $ | 18,654 | $ | 21,314 | $ | 14,151 | |||||||
Less: Auto finance net charge-offs | 10,182 | 9,887 | 10,656 | |||||||||||
Total net charge-offs excluding auto finance net charge-offs | (b) | 8,472 | 11,427 | 3,495 | ||||||||||
Average total loans and leases | (c) | $ | 19,186,266 | $ | 18,554,629 | $ | 19,253,483 | |||||||
Less: Average auto finance loans | 1,841,130 | 2,121,969 | 3,020,187 | |||||||||||
Average total loans and leases excluding auto finance loans | (d) | $ | 17,345,136 | $ | 16,432,660 | $ | 16,233,296 | |||||||
Net charge-off rate(1) | (a) / (c) | 0.39 | % | 0.46 | % | 0.29 | % | |||||||
Net charge-off rate excluding auto finance net charge-offs(1) | (b) / (d) | 0.20 | 0.28 | 0.09 |
(1) | Annualized |
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited), Continued | ||||||||||||||||||||||
Computation of adjusted return on average common equity, return on average tangible common equity and adjusted return on average tangible common equity: | ||||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||
Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | ||||||||||||||||||
(Dollars in thousands) | 2019 | 2018 | 2018 | 2018 | 2018 | |||||||||||||||||
Net income available to common stockholders used in ROACE calculation | (a) | $ | 68,001 | $ | 83,158 | $ | 83,702 | $ | 56,255 | $ | 66,174 | |||||||||||
Plus: Other intangibles amortization(1) | 814 | 847 | 913 | 835 | 831 | |||||||||||||||||
Less: Related income tax expense | 194 | 198 | 220 | 201 | 199 | |||||||||||||||||
Net income available to common stockholders used in ROATCE calculation | (b) | $ | 68,621 | $ | 83,807 | $ | 84,395 | $ | 56,889 | $ | 66,806 | |||||||||||
Adjusted net income available to common stockholders: | ||||||||||||||||||||||
Net income available to common stockholders | $ | 68,001 | $ | 83,158 | $ | 83,702 | $ | 56,255 | $ | 66,174 | ||||||||||||
Plus: Merger-related expenses | 9,458 | ? | ? | ? | ? | |||||||||||||||||
Plus: CFPB/OCC settlement adjustment | ? | ? | ? | 32,000 | ? | |||||||||||||||||
Less: Related income tax expense | 2,252 | ? | ? | 6,491 | ? | |||||||||||||||||
Net income available to common stockholders used in adjusted ROACE calculation | (c) | 75,207 | 83,158 | 83,702 | 81,764 | 66,174 | ||||||||||||||||
Plus: Other intangibles amortization(1) | 814 | 847 | 913 | 835 | 831 | |||||||||||||||||
Less: Related income tax expense | 194 | 198 | 220 | 201 | 199 | |||||||||||||||||
Net income available to common stockholders used in adjusted ROATCE calculation | (d) | $ | 75,827 | $ | 83,807 | $ | 84,395 | $ | 82,398 | $ | 66,806 | |||||||||||
Average balances: | ||||||||||||||||||||||
Total equity | $ | 2,579,250 | $ | 2,517,870 | $ | 2,511,983 | $ | 2,512,128 | $ | 2,580,920 | ||||||||||||
Less: Non-controlling interest in subsidiaries | 24,521 | 21,918 | 23,548 | 28,654 | 23,191 | |||||||||||||||||
Total TCF Financial Corporation stockholders' equity | 2,554,729 | 2,495,952 | 2,488,435 | 2,483,474 | 2,557,729 | |||||||||||||||||
Less: Preferred stock | 169,302 | 169,302 | 169,302 | 169,302 | 200,404 | |||||||||||||||||
Average total common stockholders' equity used in ROACE calculation | (e) | 2,385,427 | 2,326,650 | 2,319,133 | 2,314,172 | 2,357,325 | ||||||||||||||||
Less: Goodwill, net | 154,757 | 154,757 | 154,757 | 154,757 | 154,757 | |||||||||||||||||
Less: Other intangibles, net(1) | 20,102 | 20,931 | 21,798 | 22,672 | 23,274 | |||||||||||||||||
Average tangible common stockholders' equity used in ROATCE calculation | (f) | $ | 2,210,568 | $ | 2,150,962 | $ | 2,142,578 | $ | 2,136,743 | $ | 2,179,294 | |||||||||||
Adjusted average total common stockholders' equity: | ||||||||||||||||||||||
Average total common stockholders' equity | $ | 2,385,427 | $ | 2,326,650 | $ | 2,319,133 | $ | 2,314,172 | $ | 2,357,325 | ||||||||||||
Plus: CFPB/OCC settlement adjustment to average total common stockholders' equity | ? | ? | ? | 4,205 | ? | |||||||||||||||||
Average total common stockholders' equity used in adjusted ROACE calculation | (g) | 2,385,427 | 2,326,650 | 2,319,133 | 2,318,377 | 2,357,325 | ||||||||||||||||
Less: Goodwill, net | 154,757 | 154,757 | 154,757 | 154,757 | 154,757 | |||||||||||||||||
Less: Other intangibles, net(1) | 20,102 | 20,931 | 21,798 | 22,672 | 23,274 | |||||||||||||||||
Average tangible common stockholders' equity used in adjusted ROATCE calculation | (h) | $ | 2,210,568 | $ | 2,150,962 | $ | 2,142,578 | $ | 2,140,948 | $ | 2,179,294 | |||||||||||
ROACE(2) | (a) / (e) | 11.40 | % | 14.30 | % | 14.44 | % | 9.72 | % | 11.23 | % | |||||||||||
Adjusted ROACE(2) | (c) / (g) | 12.61 | 14.30 | 14.44 | 14.11 | 11.23 | ||||||||||||||||
ROATCE(2) | (b) / (f) | 12.42 | 15.59 | 15.76 | 10.65 | 12.26 | ||||||||||||||||
Adjusted ROATCE(2) | (d) / (h) | 13.72 | 15.59 | 15.76 | 15.39 | 12.26 |
(1) | Includes non-mortgage servicing assets | |
(2) | Annualized |
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited), Continued | ||||||||||||||||||||||
Computation of adjusted efficiency ratio: | ||||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||
Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | ||||||||||||||||||
(Dollars in thousands) | 2019 | 2018 | 2018 | 2018 | 2018 | |||||||||||||||||
Non-interest expense | (a) | $ | 253,075 | $ | 249,958 | $ | 246,423 | $ | 272,039 | $ | 245,980 | |||||||||||
Less: Merger-related expenses | 9,458 | ? | ? | ? | ? | |||||||||||||||||
Less: CFPB/OCC settlement adjustment | ? | ? | ? | 32,000 | ? | |||||||||||||||||
Adjusted non-interest expense | (b) | $ | 243,617 | $ | 249,958 | $ | 246,423 | $ | 240,039 | $ | 245,980 | |||||||||||
Net interest income | $ | 250,907 | $ | 248,888 | $ | 249,121 | $ | 250,799 | $ | 243,199 | ||||||||||||
Non-interest income | 107,026 | 128,133 | 116,445 | 114,103 | 112,204 | |||||||||||||||||
Total revenue | (c) | $ | 357,933 | $ | 377,021 | $ | 365,566 | $ | 364,902 | $ | 355,403 | |||||||||||
Efficiency ratio | (a) / (c) | 70.70 | % | 66.30 | % | 67.41 | % | 74.55 | % | 69.21 | % | |||||||||||
Adjusted efficiency ratio | (b) / (c) | 68.06 | 66.30 | 67.41 | 65.78 | 69.21 |
Computation of tangible common equity to tangible assets and tangible book value per common share: | ||||||||||||||||||||||
At Mar. 31, | At Dec. 31, | At Sep. 30, | At Jun. 30, | At Mar. 31, | ||||||||||||||||||
(Dollars in thousands, except per share data) | 2019 | 2018 | 2018 | 2018 | 2018 | |||||||||||||||||
Total equity | $ | 2,645,845 | $ | 2,556,260 | $ | 2,528,012 | $ | 2,504,578 | $ | 2,550,950 | ||||||||||||
Less: Non-controlling interest in subsidiaries | 29,452 | 18,459 | 21,154 | 23,646 | 28,437 | |||||||||||||||||
Total TCF Financial Corporation stockholders' equity | 2,616,393 | 2,537,801 | 2,506,858 | 2,480,932 | 2,522,513 | |||||||||||||||||
Less: Preferred stock | 169,302 | 169,302 | 169,302 | 169,302 | 169,302 | |||||||||||||||||
Total common stockholders' equity | (a) | 2,447,091 | 2,368,499 | 2,337,556 | 2,311,630 | 2,353,211 | ||||||||||||||||
Less: Goodwill, net | 154,757 | 154,757 | 154,757 | 154,757 | 154,757 | |||||||||||||||||
Less: Other intangibles, net(1) | 19,704 | 20,518 | 21,364 | 22,247 | 23,112 | |||||||||||||||||
Tangible common stockholders' equity | (b) | $ | 2,272,630 | $ | 2,193,224 | $ | 2,161,435 | $ | 2,134,626 | $ | 2,175,342 | |||||||||||
Total assets | (c) | $ | 24,418,715 | $ | 23,699,612 | $ | 22,904,785 | $ | 23,184,462 | $ | 23,385,052 | |||||||||||
Less: Goodwill, net | 154,757 | 154,757 | 154,757 | 154,757 | 154,757 | |||||||||||||||||
Less: Other intangibles, net(1) | 19,704 | 20,518 | 21,364 | 22,247 | 23,112 | |||||||||||||||||
Tangible assets | (d) | $ | 24,244,254 | $ | 23,524,337 | $ | 22,728,664 | $ | 23,007,458 | $ | 23,207,183 | |||||||||||
Common stock shares outstanding | (e) | 163,951,155 | 163,923,227 | 166,812,524 | 167,684,971 | 169,415,834 | ||||||||||||||||
Common equity to assets | (a) / (c) | 10.02 | % | 9.99 | % | 10.21 | % | 9.97 | % | 10.06 | % | |||||||||||
Tangible common equity to tangible assets | (b) / (d) | 9.37 | 9.32 | 9.51 | 9.28 | 9.37 | ||||||||||||||||
Book value per common share | (a) / (e) | $ | 14.93 | $ | 14.45 | $ | 14.01 | $ | 13.79 | $ | 13.89 | |||||||||||
Tangible book value per common share | (b) / (e) | 13.86 | 13.38 | 12.96 | 12.73 | 12.84 |
(1) | Includes non-mortgage servicing assets |
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