TCF Financial Corporation (NASDAQ: TCF):
First Quarter 2021 Highlights
- Quarterly net income of $123.3 million, or $0.79 per diluted
share, up 35.0% from the fourth quarter of 2020
- Adjusted diluted earnings per common share of $0.84(1), up
12.0% from the fourth quarter of 2020. Adjusted diluted earnings
per common share excludes $6.7 million, or $0.04 per share,
after-tax impact of merger-related expenses and notable items
- Loan and lease balances grew $1.8 billion, or 5.1%, from
December 31, 2020. Loan and lease balances, excluding PPP loans(1),
grew $1.4 billion, or 4.4%, from December 31, 2020
- Deposit balances grew $930 million, or 2.4%, from December 31,
2020
- Provision for credit losses of $20.6 million, up 73.9% from the
fourth quarter of 2020, primarily reflects loan and lease
growth
- Allowance for credit losses, which includes the reserve for
unfunded lending commitments, of 1.45% of total loans and leases,
compared to 1.59% at December 31, 2020
- Nonaccrual loans and leases of $677.9 million, relatively
stable compared to December 31, 2020
- Net charge-offs of $43.3 million, or 0.49% of average loans and
leases (annualized)
- Efficiency ratio of 67.85%, improved 668 basis points from the
fourth quarter of 2020. Adjusted efficiency ratio of 62.69%(1),
improved 211 basis points from the fourth quarter of 2020
- Common equity Tier 1 capital ratio of 11.06%, compared to
11.45% at December 31, 2020
- On January 29, 2021, TCF acquired BB&T Commercial Equipment
Capital, Corp. ("CEC"), which included a portfolio of $1.0 billion
of equipment finance loans and leases
- On March 25, 2021, TCF shareholders approved the announced
merger with Huntington Bancshares Incorporated ("Huntington"),
which is expected to close in the second quarter of 2021, subject
to regulatory approval
Merger-related Expenses and Notable items in the First
Quarter of 2021 and Fourth Quarter of 2020(1)
- Pre-tax merger-related expenses of $16.2 million, $12.7 million
net of tax, or $0.08 per diluted common share for the first quarter
of 2021, compared to pre-tax merger-related expenses of $31.5
million, $24.4 million net of tax, or $0.17 per diluted common
share for the fourth quarter of 2020
- Pre-tax benefit of $7.6 million, $6.0 million net of tax,
related to notable items for the first quarter of 2021, compared to
pre-tax expenses of $357 thousand, $276 thousand net of tax,
related to notable items for the fourth quarter of 2020, see
summary of notable items adjustments below
(1)
Denotes a non-GAAP financial measure. See
"Reconciliation of GAAP to Non-GAAP Financial Measures" tables and
the following table detailing merger-related expenses and notable
items.
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)
2021
2020
2020
2020
2020
2020
2020
Financial Results
Net income attributable to TCF
$
123,336
$
91,358
$
55,738
$
23,764
$
51,899
35.0
%
137.6
%
Net interest income
381,827
381,394
377,167
378,359
401,481
0.1
(4.9)
Basic earnings per common share
$
0.79
$
0.58
$
0.35
$
0.14
$
0.33
36.2
139.4
Diluted earnings per common share
0.79
0.58
0.35
0.14
0.32
36.2
146.9
Return on average assets ("ROAA")(1)
1.03
%
0.78
%
0.46
%
0.21
%
0.46
%
25
bps
57
bps
ROACE(1)
8.78
6.44
3.87
1.56
3.64
234
514
ROATCE (non-GAAP)(1)(2)
12.51
9.18
5.71
2.57
5.42
333
709
Net interest margin
3.45
3.53
3.31
3.33
3.73
(8)
(28)
Net interest margin (FTE)(1)(2)
3.47
3.55
3.34
3.35
3.76
(8)
(29)
Net charge-offs as a percentage of average
loans and leases(1)
0.49
0.14
0.28
0.04
0.06
35
43
Nonperforming assets as a percentage of
total loans and leases and other real estate owned
1.96
2.06
1.20
0.94
0.80
(10)
116
Efficiency ratio
67.85
74.53
75.29
78.26
69.57
(668)
(172)
Adjusted Financial Results
(non-GAAP)
Adjusted net income attributable to
TCF(1)(2)
$
130,074
$
116,054
$
98,696
$
84,862
$
89,855
12.1
%
44.8
%
Adjusted diluted earnings per common
share(2)
$
0.84
$
0.75
$
0.63
$
0.54
$
0.57
12.0
47.4
Adjusted ROAA(1)(2)
1.08
%
0.99
%
0.81
%
0.70
%
0.78
%
9
bps
30
bps
Adjusted ROACE(1)(2)
9.27
8.23
6.99
6.03
6.43
104
284
Adjusted ROATCE(1)(2)
13.18
11.62
9.96
8.70
9.24
156
394
Adjusted efficiency ratio(2)
62.69
64.80
61.17
59.80
58.24
(211)
445
(1)
Annualized.
(2)
Denotes a non-GAAP financial measure. See
"Reconciliation of GAAP to Non-GAAP Financial Measures" tables.
The following table includes merger-related expenses and notable
items used to arrive at adjusted net income in the Adjusted
Financial Results (non-GAAP) (see "Reconciliation of Non-GAAP
Financial Measures" tables).
For the Quarter Ended March
31, 2021
For the Quarter Ended December
31, 2020
(Dollars in thousands, except per share
data)
Pre-tax income (loss)
After-tax benefit
(loss)(1)
Per Share
Pre-tax income (loss)
After-tax benefit
(loss)(1)
Per Share
Merger-related expenses
$
(16,216
)
$
(12,736
)
$
(0.08
)
$
(31,530
)
(24,420
)
$
(0.17
)
Notable items:
Loan servicing rights recovery
(impairment)(2)
7,637
5,998
0.04
(357
)
(276
)
—
Total notable items
7,637
5,998
0.04
(357
)
(276
)
—
Total merger-related and notable items
$
(8,579
)
$
(6,738
)
$
(0.04
)
$
(31,887
)
$
(24,696
)
$
(0.17
)
(1)
Net of tax benefit at our normal tax rate
and other tax benefits.
(2)
Included within other mortgage banking
income.
TCF Financial Corporation ("TCF" or the "Corporation") (NASDAQ:
TCF) today reported net income of $123.3 million, or diluted
earnings per common share of $0.79, for the first quarter of 2021,
compared with $91.4 million, or diluted earnings per common share
of $0.58, for the fourth quarter of 2020. Adjusted net income was
$130.1 million, or $0.84 per diluted common share for the first
quarter of 2021, compared with $116.1 million, or $0.75 per diluted
common share, for the fourth quarter of 2020 (see "Reconciliation
of GAAP to Non-GAAP Financial Measures" tables).
“Our first quarter performance was highlighted by strong balance
sheet growth as our teams remained focused on taking care of our
customers, while we also continued preparing for the closing of our
merger with Huntington,” said David T. Provost, chief executive
officer. “We were pleased by the overwhelming shareholder approval
of the pending merger with Huntington. With the transaction on
track to close later in the second quarter of 2021, we look forward
to delivering enhanced shareholder value through our greater
Midwest market share, increased scale, broader product set, and
enhanced technology capabilities and investments.”
“We continued to execute on our business strategy during the
quarter as we generated strong loan and lease growth driven by our
commercial portfolios,” said Thomas C. Shafer, vice chairman and
chief executive officer of TCF National Bank. “This growth included
the acquisition of an equipment finance company in January, further
bolstering our team of talented and experienced professionals,
which we believe will continue to provide incremental growth
opportunities going forward. In addition, we saw strong deposit
growth driven by noninterest-bearing deposit inflows during the
quarter, which helped to further reduce our overall cost of
deposits. As we continue to operate our business and serve our
customers today, we will be well positioned to transition our
business into Huntington when the merger closes.”
Net Interest Income and Net Interest Margin
Net interest income was $381.8 million for the first quarter of
2021, an increase of $0.4 million, or 0.1%, from the fourth quarter
of 2020. Purchase accounting accretion and amortization related to
the TCF/Chemical merger included in net interest income was $15.0
million for the first quarter of 2021, compared to $23.0 million
for the fourth quarter of 2020. At March 31, 2021, the remaining
fair value discount from purchase accounting on acquired loans
totaled $91.1 million. Additionally, net interest income recorded
for the first quarter of 2021 included $17.8 million of interest
and fee income from PPP less funding costs, compared to $19.1
million for the fourth quarter of 2020. Adjusted net interest
income (FTE), excluding purchase accounting accretion and
amortization and the impact from PPP loans, a non-GAAP financial
measure, was $351.8 million for the first quarter of 2021, compared
to $342.5 million for the fourth quarter of 2020.
Net interest margin was 3.45% for the first quarter of 2021,
compared to 3.53% in the fourth quarter of 2020, while net interest
margin on a fully tax-equivalent basis (FTE), a non-GAAP financial
measure, was 3.47%, down 8 basis points from the fourth quarter of
2020. Adjusted net interest margin (FTE), a non-GAAP financial
measure, was 3.30% for the first quarter of 2021, consistent with
the fourth quarter of 2020. Adjusted net interest margin (FTE)
excluded a 14 basis point impact related to purchase accounting
accretion and amortization related to the TCF/Chemical merger and a
three basis point impact related to PPP loans. See the
"Reconciliation of GAAP to Non-GAAP Financial Measures" tables for
reconciliations of our noted non-GAAP measures. The decrease in net
interest margin from the fourth quarter of 2020 was primarily
driven by lower purchase accounting accretion and new loan and
lease originations at lower yields than loan and lease runoff,
partially offset by lower cost of funds. Deposit costs continued to
reprice lower as they declined from 0.22% in the fourth quarter of
2020 to 0.14% in the first quarter of 2021.
Noninterest Income
Noninterest income was $132.1 million for the first quarter of
2021, an increase of $4.8 million, or 3.8%, from the fourth quarter
of 2020. Noninterest income for the first quarter of 2021 included
a notable item of a $7.6 million loan servicing rights recovery of
impairment, included in mortgage banking income. Noninterest income
for the fourth quarter of 2020 included a notable item of a $357
thousand loan servicing rights impairment, included in mortgage
banking income. Adjusted noninterest income, a non-GAAP financial
measure that excludes the identified notable items, for the first
quarter of 2021 was $124.4 million, compared to $127.6 million in
the fourth quarter of 2020. Noninterest income in the first quarter
of 2021, compared to the fourth quarter of 2020, also included an
increase of $5.7 million in net gains on sales of loans and leases,
a decrease of $3.9 million in fees and service charges on deposit
accounts and a decrease of $3.6 million in leasing revenue. Net
gains on sales of loans and leases for the first quarter of 2021
included the sale of $17.8 million of consumer nonaccrual loans.
The first quarter of 2021 also included a $1.9 million favorable
interest rate swap mark-to-market adjustment resulting from changes
in the interest rate environment, included in other noninterest
income, compared to a favorable interest rate swap mark-to-market
adjustment of $2.4 million in the fourth quarter of 2020. See the
"Reconciliation of GAAP to Non-GAAP Financial Measures" tables for
reconciliations of our noted non-GAAP measures.
Noninterest Expense
Noninterest expense was $348.7 million for the first quarter of
2021, a decrease of $30.4 million, or 8.0%, from the fourth quarter
of 2020. The first quarter of 2021 included $16.2 million of
merger-related expenses and $543 thousand of historic tax credit
amortization recorded in other noninterest expense. The decrease in
the first quarter of 2021 primarily reflected decreases of $17.5
million in compensation and benefits expense and $15.3 million in
merger-related expenses, partially offset by increases of $2.1
million in occupancy and equipment expense and $1.8 million in
lease financing equipment depreciation. The decrease in
compensation and benefits expense was primarily due to executive
severance expense recognized in the fourth quarter of 2020 and a
decrease in commissions and incentives expense, partially offset by
an increase in payroll taxes due to the beginning of a new tax
year.
Income Tax Expense
Income tax expense for the first quarter of 2021 was $19.5
million, an effective tax rate of 13.5%, compared to income tax
expense of $25.0 million, an effective tax rate of 21.3%, for the
fourth quarter of 2020. Income tax expense for the first quarter of
2021 included an additional $11.0 million benefit attributable to
tax net operating loss carryback benefits associated with the CARES
Act. Excluding the benefit provided by the CARES Act, our effective
income tax rate was 21.1% for the first quarter of 2021.
Credit Quality
Provision for credit losses Provision for credit losses
was $20.6 million for the first quarter of 2021, an increase of
$8.7 million, from the fourth quarter of 2020. The provision for
credit losses in the first quarter of 2021 primarily reflects loan
and lease growth and the impact of higher net charge-offs. First
quarter 2021 net charge-offs were $43.3 million, compared to $11.6
million in the fourth quarter of 2020.
Net charge-off rate The annualized net charge-offs as a
percentage of average loans and leases were 0.49% for the first
quarter of 2021, compared to 0.24% for the average of the trailing
four quarters. The increase in the first quarter of 2021 was
primarily due to charge-offs taken on nonaccrual loans and leases
within the commercial and industrial portfolio, as well as the
commercial real estate portfolio primarily in the hotel sector.
Allowance for Credit Losses The ACL includes both the
allowance for loan and lease losses, which is presented separately
on the Consolidated Statements of Financial Condition, and the
reserve for unfunded lending commitments, which is included in
other liabilities on the Consolidated Statements of Financial
Condition. The ACL was $526.6 million, or 1.45% of total loans and
leases, at March 31, 2021, compared to $549.2 million, or 1.59%, at
December 31, 2020. The ACL as a percentage of total loans and
leases, excluding PPP loans, a non-GAAP financial measure, was
1.53% at March 31, 2021, compared to 1.67% at December 31, 2020
(see "Reconciliation of GAAP to Non-GAAP Financial Measures"
tables). The PPP loans are individually guaranteed by the Small
Business Administration and therefore the accounting under CECL
does not require reserves to be recorded on such loans. The
decrease in the ACL as a percentage of total loans and leases from
December 31, 2020 was primarily due to continued improvement in
both current and forecasted macro-economic conditions and benefit
from nonaccrual loan sale recoveries.
Nonaccrual loans and leases Nonaccrual loans and leases
were $677.9 million at March 31, 2021 and represented 1.87% of
total loans and leases, compared to $677.3 million, or 1.97% of
total loans and leases, at December 31, 2020.
Nonaccrual loans and leases in the hotel sector were $110.6
million, an increase of $32.0 million from December 31, 2020, while
nonaccrual loans in the motor coach sector were $100.2 million, a
decrease of $3.9 million from December 31, 2020, and nonaccrual
loans and leases in the shuttle bus sector were $37.0 million, an
increase of $569 thousand from December 31, 2020. Due to the
prolonged recovery of revenues for borrowers in these sectors given
the dependency on travel and related activity levels, we have taken
a proactive approach by working with borrowers to extend deferrals
continuing into 2021 where necessary, many of which have been moved
to nonaccrual status.
Loan and Lease Deferrals Loans and leases on deferral
status were $231.0 million at March 31, 2021, a decrease of $98.9
million, or 30.0%, from December 31, 2020. Loans and leases on
deferral status included $148.8 million of balances that are
included in nonaccrual balances at March 31, 2021, the majority of
which have been on deferral for over 180 days.
Balance Sheet
Loans and leases
March 31,
December 31,
Change
(Dollars in thousands)
2021
2020
$
%
Total loans and leases
$
36,221,019
$
34,466,408
$
1,754,611
5.1
%
PPP loans
1,865,319
1,553,908
$
311,411
20.0
Adjusted total loans and leases, excluding
PPP(1)
$
34,355,700
$
32,912,500
$
1,443,200
4.4
%
(1)
Denotes a non-GAAP financial measure.
Loans and leases were $36.2 billion at March 31, 2021, an
increase of $1.8 billion, or 5.1%, compared to $34.5 billion at
December 31, 2020. At March 31, 2021 we had $1.9 billion of PPP
loans outstanding, compared to $1.6 billion at December 31, 2020,
all included in our commercial and industrial loan portfolio. Loans
and leases excluding PPP loans, a non-GAAP financial measure,
increased $1.4 billion, or 4.4%, from December 31, 2020, primarily
due to the CEC portfolio purchase and additional increases in the
commercial loan and lease portfolio and residential mortgage
loans.
Investment securities The investment securities portfolio
was $8.6 billion at March 31, 2021, an increase of $144.5 million,
or 1.7%, compared to $8.5 billion at December 31, 2020.
Deposits Deposits were $39.8 billion at March 31, 2021,
an increase of $930.5 million, or 2.4%, compared to $38.9 billion
at December 31, 2020. Increases in noninterest-bearing deposits of
$1.4 billion, savings account balances of $478.5 million and
checking deposit account balances of $3.3 million, were partially
offset by decreases in certificates of deposits of $859.2 million
and money market accounts of $50.8 million as of March 31, 2021
compared to December 31, 2020. On a year-over-year basis,
noninterest-bearing deposits increased $4.2 billion, or 50.5%.
Capital The common equity Tier 1 capital ratio was 11.06%
at March 31, 2021, compared to 11.45% at December 31, 2020. Our
capital ratios reflect our election of the five-year CECL
transition for regulatory capital purposes.
TCF's board of directors declared a quarterly cash dividend of
$0.35625 per depositary share payable on June 1, 2021 to
shareholders of record of the depositary shares, representing a
1/1,000th interest in a share of the 5.70% Series C Non-Cumulative
Perpetual Preferred Stock, at the close of business on May 14,
2021.
TCF's board of directors has not declared a regular quarterly
cash dividend on TCF's common shares given the expected closing
date of the merger with Huntington in the second quarter of 2021.
If necessary to give effect to the intent of the Agreement and Plan
of Merger to provide that TCF shareholders will receive either a
common dividend from TCF or a common dividend from Huntington, but
not both for the quarter, TCF's board of directors will revisit the
dividend topic.
TCF Financial Corporation (NASDAQ: TCF) is
a Detroit, Michigan-based financial holding company with $49
billion in total assets at March 31, 2021 and a top 10 deposit
market share in the Midwest. TCF’s primary banking subsidiary, TCF
National Bank, is a premier Midwest bank offering consumer and
commercial banking, trust and wealth management, and specialty
leasing and lending products and services to consumers, small
businesses and commercial clients. TCF has approximately 475
banking centers primarily located in Michigan, Illinois and
Minnesota with additional locations in Colorado, Ohio, South Dakota
and Wisconsin. TCF also conducts business across all 50 states and
Canada through its specialty lending and leasing businesses. To
learn more about TCF, visit ir.tcfbank.com.
Cautionary Statements for Purposes of the Safe Harbor
Provisions of the Securities Litigation Reform Act
Any statements contained in this earnings release regarding the
outlook for the Corporation's businesses and their respective
markets, such as statements regarding projections of future
performance, targets, guidance, statements of the Corporation's
plans and objectives, forecasts of market trends and other matters
are forward-looking statements based on the Corporation's
assumptions and beliefs. Such statements may be identified by such
words or phrases as "will likely result," "are expected to," "will
continue," "outlook," "will benefit," "is anticipated," "estimate,"
"project," "management believes" or similar expressions. These
forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from those discussed in such statements and no assurance can be
given that the results in any forward-looking statement will be
achieved. For these statements, TCF claims the protection of the
safe harbor for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995. Any forward-looking
statement speaks only as of the date on which it is made and we
disclaim any obligation to subsequently revise any forward-looking
statement to reflect events or circumstances after such date or to
reflect the occurrence of anticipated or unanticipated events.
This release also contains forward-looking statements regarding
TCF's outlook or expectations with respect to the planned merger
with Huntington. Examples of forward-looking statements include,
but are not limited to, statements regarding the outlook and
expectations of TCF and Huntington with respect to the planned
merger, the strategic benefits and financial benefits of the
merger, including the expected impact of the merger on the combined
corporation's future financial performance (including anticipated
accretion to earnings per share, the tangible book value earn-back
period and other operating and return metrics), and the timing of
the closing of the merger. Such risks, uncertainties and
assumptions, include, among others:
- the failure to obtain necessary regulatory approvals when
expected or at all (and the risk that such approvals may result in
the imposition of conditions that could adversely affect TCF or
Huntington or the expected benefits of the merger);
- the failure of either TCF or Huntington to satisfy any of the
other closing conditions to the merger on a timely basis or at
all;
- the occurrence of any event, change or other circumstances that
could give rise to the right of one or both of the parties to
terminate the merger agreement;
- the possibility that the anticipated benefits of the merger,
including anticipated cost savings and strategic gains, are not
realized when expected or at all, including as a result of the
impact of, or problems arising from, economic weakness, competitive
factors in the areas where TCF and Huntington do business, or as a
result of other unexpected factors or events;
- the impact of purchase accounting with respect to the merger,
or any change in the assumptions used regarding the assets
purchased and liabilities assumed to determine their fair
value;
- diversion of management's attention from ongoing business
operations and opportunities;
- potential adverse reactions or changes to business or employee
relationships, including those resulting from the announcement or
completion of the merger;
- the ability of either TCF or Huntington to repurchase their
stock and the prices at which such repurchases may be made;
- the outcome of any legal proceedings that may be instituted
against TCF or Huntington;
- the integration of the businesses and operations of TCF and
Huntington, which may take longer than anticipated or be more
costly than anticipated or have unanticipated adverse results
relating to our businesses;
- business disruptions following the merger; and
- other factors that may affect future results of TCF and
Huntington including changes in asset quality and credit risk; the
inability to grow revenue and earnings; changes in interest rates
and capital markets; inflation; customer borrowing, repayment,
investment and deposit practices; the impact, extent and timing of
technological changes; capital management activities; and other
actions of the Federal Reserve Board and legislative and regulatory
actions and reforms.
Additional factors that could cause results to differ materially
from those described above can be found in the risk factors
described in Part I, Item 1A of TCF’s Annual Report on Form 10-K
under the heading "Risk Factors" and Huntington’s Annual Report on
Form 10-K filed with the SEC for the year ended December 31, 2020
or otherwise disclosed in documents filed or furnished by us with
or to the SEC after the filing of the Annual Report on Form 10-K.
TCF disclaims any obligation to update or revise any
forward-looking statements contained in this communication, which
speak only as of the date hereof, whether as a result of new
information, future events or otherwise, except as required by law.
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 net income, adjusted diluted
earnings per common share, adjusted ROAA, adjusted ROACE, ROATCE,
adjusted ROATCE, adjusted efficiency ratio, adjusted net interest
income, net interest margin (FTE), adjusted net interest margin
(FTE), adjusted noninterest income, adjusted noninterest expense,
tangible book value per common share, tangible common equity to
tangible assets and the allowance for credit losses as percentage
of total loans and leases, excluding PPP loans, internally to
measure performance and believes that these financial measures not
recognized under generally accepted accounting principles in the
United States ("GAAP") (i.e. non-GAAP) provide meaningful
information to investors that will permit them to assess the
Corporation's capital and ability to withstand unexpected market or
economic conditions and to assess the performance of the
Corporation in relation to other banking institutions on the same
basis as that applied by management, analysts and banking
regulators. TCF adjusts certain results to exclude merger-related
expenses and notable items, including the related tax impact, in
addition to presenting net interest income and net interest margin
(FTE) excluding purchase accounting accretion and amortization and
the impact of PPP loans. Management believes these measures are
useful to investors in understanding TCF's business and operating
results.
These non-GAAP financial measures are not defined by GAAP and
other entities may calculate them differently than TCF does.
Non-GAAP financial measures have inherent limitations and are not
required to be uniformly applied. Although these non-GAAP financial
measures are frequently used by stakeholders in the evaluation of a
corporation, they have limitations as analytical tools and should
not be considered in isolation or as a substitute for analyses of
results as reported under GAAP. In particular, a measure of
earnings that excludes selected items does not represent the amount
that effectively accrues directly to shareholders. Reconciliations
of non-GAAP financial measures to the most directly comparable GAAP
financial measure may be found in the reconciliation tables
included in this press release.
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, 2020
Mar. 31, 2020
2021
2020
2020
2020
2020
$
%
$
%
ASSETS:
Cash and cash equivalents:
Cash and due from banks
$
585,663
$
531,918
$
538,481
$
535,507
$
713,413
$
53,745
10.1
%
$
(127,750
)
(17.9
)%
Interest-bearing deposits with other
banks
463,641
728,677
1,232,773
2,545,170
565,458
(265,036
)
(36.4
)
(101,817
)
(18.0
)
Total cash and cash equivalents
1,049,304
1,260,595
1,771,254
3,080,677
1,278,871
(211,291
)
(16.8
)
(229,567
)
(18.0
)
Federal Home Loan Bank and Federal Reserve
Bank stocks, at cost
358,414
320,436
300,444
386,483
484,461
37,978
11.9
(126,047
)
(26.0
)
Investment securities:
Available-for-sale, at fair value
8,403,788
8,284,723
7,446,163
7,219,373
7,025,224
119,065
1.4
1,378,564
19.6
Held-to-maturity, at amortized cost
209,778
184,359
170,309
130,101
135,619
25,419
13.8
74,159
54.7
Total investment securities
8,613,566
8,469,082
7,616,472
7,349,474
7,160,843
144,484
1.7
1,452,723
20.3
Loans and leases held-for-sale
107,649
222,028
460,427
532,799
287,177
(114,379
)
(51.5
)
(179,528
)
(62.5
)
Loans and leases
36,221,019
34,466,408
34,343,691
35,535,824
35,921,614
1,754,611
5.1
299,405
0.8
Allowance for loan and lease losses
(504,645
)
(525,868
)
(515,229
)
(461,114
)
(406,383
)
21,223
4.0
(98,262
)
(24.2
)
Loans and leases, net
35,716,374
33,940,540
33,828,462
35,074,710
35,515,231
1,775,834
5.2
201,143
0.6
Premises and equipment, net
455,032
470,131
469,699
472,240
516,454
(15,099
)
(3.2
)
(61,422
)
(11.9
)
Goodwill
1,379,890
1,313,046
1,313,046
1,313,046
1,313,046
66,844
5.1
66,844
5.1
Other intangible assets, net
149,438
146,377
151,875
157,373
162,887
3,061
2.1
(13,449
)
(8.3
)
Loan servicing rights
44,151
38,303
38,253
38,816
47,283
5,848
15.3
(3,132
)
(6.6
)
Other assets
1,585,733
1,621,949
1,615,857
1,656,842
1,828,130
(36,216
)
(2.2
)
(242,397
)
(13.3
)
Total assets
$
49,459,551
$
47,802,487
$
47,565,789
$
50,062,460
$
48,594,383
$
1,657,064
3.5
%
$
865,168
1.8
%
LIABILITIES AND EQUITY:
Deposits:
Noninterest-bearing
$
12,394,753
$
11,036,086
$
10,691,041
$
10,480,245
$
8,237,916
$
1,358,667
12.3
%
$
4,156,837
50.5
%
Interest-bearing
27,392,061
27,820,233
28,481,056
28,730,627
27,561,387
(428,172
)
(1.5
)
(169,326
)
(0.6
)
Total deposits
39,786,814
38,856,319
39,172,097
39,210,872
35,799,303
930,495
2.4
3,987,511
11.1
Short-term borrowings
1,426,083
617,363
655,461
2,772,998
3,482,535
808,720
131.0
(2,056,452
)
(59.1
)
Long-term borrowings
1,518,816
1,374,732
871,845
936,908
2,600,594
144,084
10.5
(1,081,778
)
(41.6
)
Other liabilities
1,136,067
1,264,776
1,207,966
1,483,127
1,056,118
(128,709
)
(10.2
)
79,949
7.6
Total liabilities
43,867,780
42,113,190
41,907,369
44,403,905
42,938,550
1,754,590
4.2
929,230
2.2
Equity:
Preferred stock
169,302
169,302
169,302
169,302
169,302
—
—
—
—
Common stock
152,696
152,566
152,380
152,233
152,186
130
0.1
510
0.3
Additional paid-in capital
3,466,655
3,457,802
3,450,669
3,441,925
3,433,234
8,853
0.3
33,421
1.0
Retained earnings
1,802,340
1,735,201
1,700,044
1,700,480
1,732,932
67,139
3.9
69,408
4.0
Accumulated other comprehensive income
2,654
182,673
191,771
198,408
166,170
(180,019
)
(98.5
)
(163,516
)
(98.4
)
Other
(29,813
)
(26,731
)
(27,122
)
(27,093
)
(28,140
)
(3,082
)
(11.5
)
(1,673
)
(5.9
)
Total TCF Financial Corporation
shareholders' equity
5,563,834
5,670,813
5,637,044
5,635,255
5,625,684
(106,979
)
(1.9
)
(61,850
)
(1.1
)
Non-controlling interest
27,937
18,484
21,376
23,300
30,149
9,453
51.1
(2,212
)
(7.3
)
Total equity
5,591,771
5,689,297
5,658,420
5,658,555
5,655,833
(97,526
)
(1.7
)
(64,062
)
(1.1
)
Total liabilities and equity
$
49,459,551
$
47,802,487
$
47,565,789
$
50,062,460
$
48,594,383
$
1,657,064
3.5
%
$
865,168
1.8
%
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, 2020
Mar. 31, 2020
2021
2020
2020
2020
2020
$
%
$
%
Interest income:
Interest and fees on loans and leases
$
360,584
$
366,152
$
373,112
$
392,826
$
443,096
$
(5,568
)
(1.5
)%
$
(82,512
)
(18.6
)%
Interest on investment securities:
Taxable
38,716
35,389
35,648
32,505
40,920
3,327
9.4
(2,204
)
(5.4
)
Tax-exempt
3,700
3,772
3,892
4,155
4,349
(72
)
(1.9
)
(649
)
(14.9
)
Interest on loans held-for-sale
975
2,682
3,829
3,322
1,561
(1,707
)
(63.6
)
(586
)
(37.5
)
Interest on other earning assets
1,657
3,457
3,967
5,562
5,466
(1,800
)
(52.1
)
(3,809
)
(69.7
)
Total interest income
405,632
411,452
420,448
438,370
495,392
(5,820
)
(1.4
)
(89,760
)
(18.1
)
Interest expense:
Interest on deposits
13,786
20,930
31,852
46,785
67,419
(7,144
)
(34.1
)
(53,633
)
(79.6
)
Interest on borrowings
10,019
9,128
11,429
13,226
26,492
891
9.8
(16,473
)
(62.2
)
Total interest expense
23,805
30,058
43,281
60,011
93,911
(6,253
)
(20.8
)
(70,106
)
(74.7
)
Net interest income
381,827
381,394
377,167
378,359
401,481
433
0.1
(19,654
)
(4.9
)
Provision for credit losses
20,556
11,818
69,664
78,726
96,943
8,738
73.9
(76,387
)
(78.8
)
Net interest income after provision for
credit losses
361,271
369,576
307,503
299,633
304,538
(8,305
)
(2.2
)
56,733
18.6
Noninterest income:
Leasing revenue
36,453
40,081
31,905
37,172
33,565
(3,628
)
(9.1
)
2,888
8.6
Fees and service charges on deposit
accounts
25,895
29,782
25,470
22,832
34,597
(3,887
)
(13.1
)
(8,702
)
(25.2
)
Card and ATM revenue
24,661
22,995
23,383
20,636
21,685
1,666
7.2
2,976
13.7
Mortgage banking income(1)
20,986
11,647
19,880
16,300
5,665
9,339
80.2
15,321
N.M.
Wealth management revenue
6,944
6,838
6,506
6,206
6,151
106
1.6
793
12.9
Net gains on sales of loans and
leases(2)
6,058
330
1,760
4,717
7,573
5,728
N.M.
(1,515
)
(20.0
)
Net gains on investment securities
8
6
2,324
8
—
2
33.3
8
N.M.
Other
11,055
15,557
7,582
25,183
27,727
(4,502
)
(28.9
)
(16,672
)
(60.1
)
Total noninterest income
132,060
127,236
118,810
133,054
136,963
4,824
3.8
(4,903
)
(3.6
)
Noninterest expense:
Compensation and employee benefits
173,602
191,052
168,323
171,799
171,528
(17,450
)
(9.1
)
2,074
1.2
Occupancy and equipment
52,166
50,062
48,233
54,107
57,288
2,104
4.2
(5,122
)
(8.9
)
Lease financing equipment depreciation
20,426
18,610
17,932
18,212
18,450
1,816
9.8
1,976
10.7
Net foreclosed real estate and repossessed
assets
1,029
761
1,518
998
1,859
268
35.2
(830
)
(44.6
)
Merger-related expenses
16,216
31,530
54,011
81,619
36,728
(15,314
)
(48.6
)
(20,512
)
(55.8
)
Other
85,243
87,076
83,423
73,506
88,746
(1,833
)
(2.1
)
(3,503
)
(3.9
)
Total noninterest expense
348,682
379,091
373,440
400,241
374,599
(30,409
)
(8.0
)
(25,917
)
(6.9
)
Income before income tax expense
(benefit)
144,649
117,721
52,873
32,446
66,902
26,928
22.9
77,747
116.2
Income tax expense (benefit)
19,540
25,031
(4,429
)
6,213
13,086
(5,491
)
(21.9
)
6,454
49.3
Income after income tax expense
(benefit)
125,109
92,690
57,302
26,233
53,816
32,419
35.0
71,293
132.5
Income attributable to non-controlling
interest
1,773
1,332
1,564
2,469
1,917
441
33.1
(144
)
(7.5
)
Net income attributable to TCF
Financial Corporation
123,336
91,358
55,738
23,764
51,899
31,978
35.0
71,437
137.6
Preferred stock dividends
2,493
2,494
2,494
2,494
2,493
(1
)
—
—
—
Net income available to common
shareholders
$
120,843
$
88,864
$
53,244
$
21,270
$
49,406
$
31,979
36.0
%
$
71,437
144.6
%
(1)
Mortgage banking income includes revenues
from originating, selling and servicing residential mortgage loans,
changes in fair value of mortgage loans held-for-sale and the
related derivative instruments, amortization and changes in
impairment of mortgage loan servicing rights, and other
miscellaneous loan fees.
(2)
Net gains on sales of loans and leases
includes net gains on sales of loans and leases originated as
held-for-investment.
TCF FINANCIAL CORPORATION AND
SUBSIDIARIES
Consolidated Average Balance Sheets,
Yields and Rates (Unaudited)
Quarter Ended
Mar. 31, 2021
Dec. 31, 2020
Mar. 31, 2020
Average
Yields &
Average
Yields &
Average
Yields &
(Dollars in thousands)
Balance
Interest(1)
Rates(1)(2)
Balance
Interest(1)
Rates(1)(2)
Balance
Interest(1)
Rates(1)(2)
ASSETS:
Federal Home Loan Bank and Federal Reserve
Bank stocks
$
354,019
$
999
1.14
%
$
301,460
$
2,855
3.77
%
$
454,675
$
3,152
2.79
%
Investment securities held-to-maturity
188,824
1,085
2.30
162,590
638
1.57
136,277
560
1.64
Investment securities
available-for-sale:
Taxable
7,203,647
37,631
2.09
6,553,126
34,751
2.12
5,892,006
40,360
2.74
Tax-exempt(3)
646,001
4,684
2.90
652,743
4,774
2.93
773,468
5,503
2.85
Loans and leases held-for-sale
160,716
975
2.43
419,704
2,682
2.56
138,058
1,561
4.53
Loans and leases(3)(4)
Commercial and industrial
12,265,082
133,510
4.37
11,425,226
130,654
4.51
11,827,315
160,802
5.42
Commercial real estate
9,818,737
88,377
3.60
9,623,256
96,278
3.91
9,291,540
117,743
5.01
Lease financing
2,849,741
34,189
4.80
2,700,298
32,617
4.83
2,682,323
34,156
5.09
Residential mortgage
6,219,844
53,735
3.46
5,788,514
52,711
3.64
6,113,279
61,379
4.02
Home equity
2,988,761
37,781
5.13
3,202,321
39,722
4.93
3,514,278
51,103
5.85
Consumer installment
1,191,606
14,818
5.04
1,288,382
16,396
5.06
1,517,412
19,742
5.23
Total loans and leases(3)(4)
35,333,771
362,410
4.12
34,027,997
368,378
4.28
34,946,147
444,925
5.08
Interest-bearing deposits with banks and
other
515,163
658
0.52
706,114
602
0.34
538,971
2,314
1.72
Total interest-earning assets
44,402,141
408,442
3.69
42,823,734
414,680
3.83
42,879,602
498,375
4.64
Other assets
4,348,617
4,537,786
4,105,824
Total assets
$
48,750,758
$
47,361,520
$
46,985,426
LIABILITIES AND EQUITY:
Noninterest-bearing deposits
$
11,322,059
$
10,942,071
$
7,929,933
Interest-bearing deposits:
Savings
9,697,206
883
0.04
9,395,608
1,759
0.07
8,589,815
13,669
0.64
Checking
7,259,029
1,442
0.08
7,029,938
1,763
0.10
5,990,309
5,830
0.39
Money market
5,577,424
4,704
0.34
5,478,528
5,828
0.42
4,792,248
14,855
1.25
Certificates of deposit
5,094,423
6,757
0.54
5,784,759
11,580
0.80
7,329,632
33,065
1.81
Total interest-bearing deposits
27,628,082
13,786
0.20
27,688,833
20,930
0.30
26,702,004
67,419
1.02
Total deposits
38,950,141
13,786
0.14
38,630,904
20,930
0.22
34,631,937
67,419
0.78
Borrowings:
Short-term borrowings
1,228,501
833
0.27
252,749
101
0.16
2,689,262
10,582
1.56
Long-term borrowings
1,587,028
9,186
2.32
1,253,556
9,027
2.87
2,608,204
15,910
2.42
Total borrowings
2,815,529
10,019
1.42
1,506,305
9,128
2.41
5,297,466
26,492
1.98
Total interest-bearing liabilities
30,443,611
23,805
0.32
29,195,138
30,058
0.41
31,999,470
93,911
1.18
Total deposits and borrowings
41,765,670
23,805
0.23
40,137,209
30,058
0.30
39,929,403
93,911
0.94
Accrued expenses and other liabilities
1,288,804
1,517,120
1,425,536
Total liabilities
43,054,474
41,654,329
41,354,939
Total TCF Financial Corporation
shareholders' equity
5,673,654
5,687,196
5,605,159
Non-controlling interest in
subsidiaries
22,630
19,995
25,328
Total equity
5,696,284
5,707,191
5,630,487
Total liabilities and equity
$
48,750,758
$
47,361,520
$
46,985,426
Net interest spread (FTE)
3.46
%
3.53
%
3.70
%
Net interest income (FTE) and net interest
margin (FTE)
$
384,637
3.47
%
$
384,622
3.55
%
$
404,464
3.76
%
Reconciliation to Reported Net Interest
Income
Net interest income and net interest
margin (GAAP)
$
381,827
3.45
%
$
381,394
3.53
%
$
401,481
3.73
%
Adjustments for taxable equivalent
interest(1)(3)
Loans and leases
1,826
2,226
1,829
Tax-exempt investment securities
984
1,002
1,154
Total FTE adjustments
2,810
3,228
2,983
Net interest income and net interest
margin (FTE)
$
384,637
3.47
%
$
384,622
3.55
%
$
404,464
3.76
%
(1)
Interest and yields are presented on a
fully tax-equivalent basis.
(2)
Annualized.
(3)
The yield on tax-exempt loans and
investment securities available-for-sale is computed on a
tax-equivalent basis using a statutory federal income tax rate of
21%.
(4)
Average balances of loans and leases
include nonaccrual loans and leases and are presented net of
unearned income.
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, 2020
Mar. 31, 2020
(Dollars in thousands)
2021
2020
2020
2020
2020
$
%
$
%
ASSETS:
Federal Home Loan Bank and Federal Reserve
Bank stocks
$
354,019
$
301,460
$
361,320
$
401,532
$
454,675
$
52,559
17.4
%
$
(100,656
)
(22.1
)%
Investment securities held-to-maturity
188,824
162,590
135,332
132,054
136,277
26,234
16.1
52,547
38.6
Investment securities
available-for-sale:
Taxable
7,203,647
6,553,126
6,021,643
5,730,762
5,892,006
650,521
9.9
1,311,641
22.3
Tax-exempt
646,001
652,743
685,652
743,744
773,468
(6,742
)
(1.0
)
(127,467
)
(16.5
)
Loans and leases held-for-sale
160,716
419,704
490,886
356,671
138,058
(258,988
)
(61.7
)
22,658
16.4
Loans and leases(1) :
Commercial and industrial
12,265,082
11,425,226
11,740,727
12,713,714
11,827,315
839,856
7.4
437,767
3.7
Commercial real estate
9,818,737
9,623,256
9,616,301
9,658,124
9,291,540
195,481
2.0
527,197
5.7
Lease financing
2,849,741
2,700,298
2,679,142
2,712,291
2,682,323
149,443
5.5
167,418
6.2
Residential mortgage
6,219,844
5,788,514
5,987,754
6,326,227
6,113,279
431,330
7.5
106,565
1.7
Home equity
2,988,761
3,202,321
3,399,468
3,509,107
3,514,278
(213,560
)
(6.7
)
(525,517
)
(15.0
)
Consumer installment
1,191,606
1,288,382
1,386,448
1,459,446
1,517,412
(96,776
)
(7.5
)
(325,806
)
(21.5
)
Total loans and
leases(1)
35,333,771
34,027,997
34,809,840
36,378,909
34,946,147
1,305,774
3.8
387,624
1.1
Interest-bearing deposits with banks and
other
515,163
706,114
2,572,254
1,587,665
538,971
(190,951
)
(27.0
)
(23,808
)
(4.4
)
Total interest-earning assets
44,402,141
42,823,734
45,076,927
45,331,337
42,879,602
1,578,407
3.7
1,522,539
3.6
Other assets
4,348,617
4,537,786
4,462,673
4,384,779
4,105,824
(189,169
)
(4.2
)
242,793
5.9
Total assets
$
48,750,758
$
47,361,520
$
49,539,600
$
49,716,116
$
46,985,426
$
1,389,238
2.9
%
$
1,765,332
3.8
%
LIABILITIES AND EQUITY:
Noninterest-bearing deposits
$
11,322,059
$
10,942,071
$
10,654,288
$
9,830,687
$
7,929,933
$
379,988
3.5
%
$
3,392,126
42.8
%
Interest-bearing deposits:
Savings
9,697,206
9,395,608
9,301,198
9,082,184
8,589,815
301,598
3.2
1,107,391
12.9
Checking
7,259,029
7,029,938
7,029,914
6,649,288
5,990,309
229,091
3.3
1,268,720
21.2
Money market
5,577,424
5,478,528
5,501,747
5,380,547
4,792,248
98,896
1.8
785,176
16.4
Certificates of deposit
5,094,423
5,784,759
6,657,697
7,491,502
7,329,632
(690,336
)
(11.9
)
(2,235,209
)
(30.5
)
Total interest-bearing deposits
27,628,082
27,688,833
28,490,556
28,603,521
26,702,004
(60,751
)
(0.2
)
926,078
3.5
Total deposits
38,950,141
38,630,904
39,144,844
38,434,208
34,631,937
319,237
0.8
4,318,204
12.5
Borrowings:
Short-term borrowings
1,228,501
252,749
2,153,030
3,016,490
2,689,262
975,752
N.M.
(1,460,761
)
(54.3
)
Long-term borrowings
1,587,028
1,253,556
910,149
1,072,394
2,608,204
333,472
26.6
(1,021,176
)
(39.2
)
Total borrowings
2,815,529
1,506,305
3,063,179
4,088,884
5,297,466
1,309,224
86.9
(2,481,937
)
(46.9
)
Total interest-bearing liabilities
30,443,611
29,195,138
31,553,735
32,692,405
31,999,470
1,248,473
4.3
(1,555,859
)
(4.9
)
Total deposits and borrowings
41,765,670
40,137,209
42,208,023
42,523,092
39,929,403
1,628,461
4.1
1,836,267
4.6
Accrued expenses and other liabilities
1,288,804
1,517,120
1,633,850
1,534,769
1,425,536
(228,316
)
(15.0
)
(136,732
)
(9.6
)
Total liabilities
43,054,474
41,654,329
43,841,873
44,057,861
41,354,939
1,400,145
3.4
1,699,535
4.1
Total TCF Financial Corporation
shareholders' equity
5,673,654
5,687,196
5,675,089
5,630,133
5,605,159
(13,542
)
(0.2
)
68,495
1.2
Non-controlling interest in
subsidiaries
22,630
19,995
22,638
28,122
25,328
2,635
13.2
(2,698
)
(10.7
)
Total equity
5,696,284
5,707,191
5,697,727
5,658,255
5,630,487
(10,907
)
(0.2
)
65,797
1.2
Total liabilities and equity
$
48,750,758
$
47,361,520
$
49,539,600
$
49,716,116
$
46,985,426
$
1,389,238
2.9
%
$
1,765,332
3.8
%
N.M. Not Meaningful (1)
Average balances of loans and leases
include nonaccrual 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,
2021
2020
2020
2020
2020
2020
2020
ASSETS:
Federal Home Loan Bank and Federal Reserve
Bank stocks
1.14
%
3.77
%
3.27
%
4.38
%
2.79
%
(263)
bps
(165)
bps
Investment securities held-to-maturity
2.30
1.57
1.69
0.21
1.64
73
66
Investment securities
available-for-sale:
Taxable
2.09
2.12
2.33
2.26
2.74
(3)
(65)
Tax-exempt(3)
2.90
2.93
2.90
2.81
2.85
(3)
5
Loans and leases held-for-sale
2.43
2.56
3.13
3.73
4.53
(13)
(210)
Loans and leases(3)
Commercial and industrial
4.37
4.51
4.30
4.41
5.42
(14)
(105)
Commercial real estate
3.60
3.91
3.90
3.91
5.01
(31)
(141)
Lease financing
4.80
4.83
4.88
4.99
5.09
(3)
(29)
Residential mortgage
3.46
3.64
3.86
3.93
4.02
(18)
(56)
Home equity
5.13
4.93
5.09
5.19
5.85
20
(72)
Consumer installment
5.04
5.06
5.04
4.88
5.23
(2)
(19)
Total loans and leases(3)
4.12
4.28
4.26
4.33
5.08
(16)
(96)
Interest-bearing deposits with banks and
other
0.52
0.34
0.16
0.30
1.72
18
(120)
Total interest-earning assets
3.69
3.83
3.72
3.88
4.64
(14)
(95)
LIABILITIES:
Interest-bearing deposits:
Savings
0.04
0.07
0.17
0.40
0.64
(3)
(60)
Checking
0.08
0.10
0.11
0.14
0.39
(2)
(31)
Money market
0.34
0.42
0.53
0.66
1.25
(8)
(91)
Certificates of deposit
0.54
0.80
1.10
1.44
1.81
(26)
(127)
Total interest-bearing deposits
0.20
0.30
0.44
0.66
1.02
(10)
(82)
Total deposits
0.14
0.22
0.32
0.49
0.78
(8)
(64)
Borrowings:
Short-term borrowings
0.27
0.16
0.46
0.54
1.56
11
(129)
Long-term borrowings
2.32
2.87
3.91
3.40
2.42
(55)
(10)
Total borrowings
1.42
2.41
1.48
1.29
1.98
(99)
(56)
Total interest-bearing liabilities
0.32
0.41
0.55
0.74
1.18
(9)
(86)
Total deposits and borrowings
0.23
0.30
0.41
0.57
0.94
(7)
(71)
Net interest margin (GAAP)
3.45
3.53
3.31
3.33
3.73
(8)
(28)
Net interest margin (FTE)
3.47
3.55
3.34
3.35
3.76
(8)
(29)
(1)
Annualized.
(2)
Yields are presented on a fully
tax-equivalent basis.
(3)
The yield on tax-exempt loans and
investment securities available-for-sale is computed on a
tax-equivalent basis using a statutory federal income tax rate of
21%.
TCF FINANCIAL CORPORATION AND
SUBSIDIARIES
Composition of Loans
(Unaudited)
Quarter Ended
Change From
Mar. 31,
Dec. 31,
Sep. 30,
Jun. 30,
Mar. 31,
Dec. 31, 2020
Mar. 31, 2020
(Dollars in thousands)
2021
2020
2020
2020
2020
$
%
$
%
Commercial and industrial
$
12,856,701
$
11,422,383
$
11,557,237
$
12,200,721
$
12,326,943
$
1,434,318
12.6
%
$
529,758
4.3
%
Commercial real estate
9,881,341
9,702,587
9,627,330
9,628,344
9,486,904
178,754
1.8
394,437
4.2
Lease financing
2,956,626
2,817,231
2,724,686
2,707,402
2,708,998
139,395
4.9
247,628
9.1
Total commercial loan and lease
portfolio
25,694,668
23,942,201
23,909,253
24,536,467
24,522,845
1,752,467
7.3
1,171,823
4.8
Residential mortgage
6,510,981
6,182,045
5,790,251
6,123,118
6,435,314
328,936
5.3
75,667
1.2
Home equity
2,864,142
3,108,736
3,302,983
3,445,584
3,453,502
(244,594
)
(7.9
)
(589,360
)
(17.1
)
Consumer installment
1,151,228
1,233,426
1,341,204
1,430,655
1,509,953
(82,198
)
(6.7
)
(358,725
)
(23.8
)
Total consumer loan portfolio
10,526,351
10,524,207
10,434,438
10,999,357
11,398,769
2,144
0.0
(872,418
)
(7.7
)
Total
$
36,221,019
$
34,466,408
$
34,343,691
$
35,535,824
$
35,921,614
$
1,754,611
5.1
%
$
299,405
0.8
%
Composition of Deposits
(Unaudited)
Quarter Ended
Change From
Mar. 31,
Dec. 31,
Sep. 30,
Jun. 30,
Mar. 31,
Dec. 31, 2020
Mar. 31, 2020
(Dollars in thousands)
2021
2020
2020
2020
2020
$
%
$
%
Noninterest-bearing deposits
$
12,394,753
$
11,036,086
$
10,691,041
$
10,480,245
$
8,237,916
$
1,358,667
12.3
%
$
4,156,837
50.5
%
Interest-bearing deposits:
Savings
9,988,434
9,509,963
9,295,467
9,310,362
8,703,864
478,471
5.0
1,284,570
14.8
Checking
7,225,588
7,222,275
7,453,504
6,693,092
6,289,046
3,313
—
936,542
14.9
Money market
5,512,828
5,563,614
5,397,325
5,584,177
5,105,285
(50,786
)
(0.9
)
407,543
8.0
Certificates of deposit
4,665,211
5,524,381
6,334,760
7,142,996
7,463,192
(859,170
)
(15.6
)
(2,797,981
)
(37.5
)
Total interest-bearing deposits
27,392,061
27,820,233
28,481,056
28,730,627
27,561,387
(428,172
)
(1.5
)
(169,326
)
(0.6
)
Total deposits
$
39,786,814
$
38,856,319
$
39,172,097
$
39,210,872
$
35,799,303
$
930,495
2.4
%
$
3,987,511
11.1
%
TCF FINANCIAL CORPORATION AND
SUBSIDIARIES
Summary of Credit Quality Data
Allowance for Credit Losses
(Unaudited)
Mar. 31,
Dec. 31,
Sep. 30,
Jun. 30,
Mar. 31,
2021
2020
2020
2020
2020
(Dollars in thousands)
Balance
Reserve Rate
Balance
Reserve Rate
Balance
Reserve Rate
Balance
Reserve Rate
Balance
Reserve Rate
Allowance for loan and lease losses
Commercial and industrial
$
148,056
1.15
%
$
155,665
1.36
%
$
145,814
1.26
%
$
122,024
1.00
%
$
117,507
0.95
%
Commercial real estate
166,452
1.68
192,331
1.98
197,892
2.06
162,364
1.69
86,209
0.91
Lease financing
46,658
1.58
40,978
1.45
36,386
1.34
19,041
0.70
27,610
1.02
Residential mortgage
79,609
1.22
72,315
1.17
62,006
1.07
79,479
1.30
97,185
1.51
Home equity
48,251
1.68
45,761
1.47
49,003
1.48
56,824
1.65
57,694
1.67
Consumer installment
15,619
1.36
18,818
1.53
24,128
1.80
21,382
1.49
20,178
1.34
Total allowance for loan and lease
losses
504,645
1.39
525,868
1.53
515,229
1.50
461,114
1.30
406,383
1.13
Reserve for unfunded lending
commitments
21,909
23,313
34,129
42,788
22,188
Total allowance for credit losses
$
526,554
1.45
%
$
549,181
1.59
%
$
549,358
1.60
%
$
503,902
1.42
%
$
428,571
1.19
%
Changes in Allowance for Credit
Losses
Quarter Ended
Change From
Mar. 31,
Dec. 31,
Sep. 30,
Jun. 30,
Mar. 31,
Dec. 31,
Mar. 31,
(Dollars in thousands)
2021
2020
2020
2020
2020
2020
2020
Allowance for loan and lease losses
Balance, beginning of period
$
525,868
$
515,229
$
461,114
$
406,383
$
113,052
$
10,639
$
412,816
Impact of CECL adoption
—
—
—
—
205,992
—
(205,992
)
Adjusted balance, beginning of period
525,868
515,229
461,114
406,383
319,044
10,639
206,824
Charge-offs
(55,618
)
(29,593
)
(32,235
)
(9,958
)
(14,729
)
(26,025
)
(40,889
)
Recoveries
12,356
17,958
7,659
6,563
9,252
(5,602
)
3,104
Net (charge-offs) recoveries
(43,262
)
(11,635
)
(24,576
)
(3,395
)
(5,477
)
(31,627
)
(37,785
)
Provision for credit losses related to
loans and leases(1)
21,960
22,634
78,323
58,126
92,990
(674
)
(71,030
)
Other(2)
79
(360
)
368
—
(174
)
439
253
Balance, end of period
504,645
525,868
515,229
461,114
406,383
(21,223
)
98,262
Reserve for unfunded lending
commitments
Balance, beginning of period
23,313
34,129
42,788
22,188
3,528
(10,816
)
19,785
Impact of CECL adoption
—
—
—
—
14,707
—
(14,707
)
Adjusted balance, beginning of period
23,313
34,129
42,788
22,188
18,235
(10,816
)
5,078
Provision (benefit) for credit losses
related to unfunded lending commitments(1)
(1,404
)
(10,816
)
(8,659
)
20,600
3,953
9,412
(5,357
)
Balance, end of period
21,909
23,313
34,129
42,788
22,188
(1,404
)
(279
)
Total allowance for credit losses
$
526,554
$
549,181
$
549,358
$
503,902
$
428,571
$
(22,627
)
$
97,983
(1)
Provision for credit losses related to
loans and leases and the provision (benefit) for credit losses
related to unfunded lending commitments are included within
provision for credit losses in the Consolidated Statements of
Income.
(2)
Primarily includes allowance for PCD
acquisitions and the transfer of the allowance for credit losses to
loans and leases held-for-sale.
TCF FINANCIAL CORPORATION AND
SUBSIDIARIES
Summary of Credit Quality Data
(Unaudited), Continued
Net (Charge-offs) Recoveries
Quarter Ended
Mar. 31,
Dec. 31,
Sep. 30,
Jun. 30,
Mar. 31,
2021
2020
2020
2020
2020
(Dollars in thousands)
Balance
Rate(1)
Balance
Rate(1)
Balance
Rate(1)
Balance
Rate(1)
Balance
Rate(1)
Commercial and industrial
$
(20,476
)
0.67
%
$
(672
)
0.02
%
$
(22,201
)
0.76
%
$
9
—
%
$
(4,022
)
0.14
%
Commercial real estate
(18,389
)
0.75
(6,050
)
0.25
(144
)
0.01
(644
)
0.03
563
(0.02
)
Lease financing
(3,936
)
0.55
(1,748
)
0.26
(161
)
0.02
(1,392
)
0.21
(878
)
0.13
Residential mortgage
3,878
(0.25
)
216
(0.01
)
803
(0.05
)
(871
)
0.06
355
(0.02
)
Home equity
(2,864
)
0.38
(182
)
0.02
(237
)
0.03
(335
)
0.04
(246
)
0.03
Consumer installment
(1,475
)
0.49
(3,199
)
0.99
(2,636
)
0.76
(162
)
0.04
(1,249
)
0.33
Total net (charge-offs) recoveries
$
(43,262
)
0.49
%
$
(11,635
)
0.14
%
$
(24,576
)
0.28
%
$
(3,395
)
0.04
%
$
(5,477
)
0.06
%
(1)
Annualized net charge-off rate based on
average loans and leases.
Over 90-Day Delinquencies as a
Percentage of Portfolio(1)
Change From
Mar. 31,
Dec. 31,
Sep. 30,
Jun. 30,
Mar. 31,
Dec. 31,
Mar. 31,
2021
2020
2020
2020
2020
2020
2020
Commercial and industrial
0.02
%
0.01
%
0.03
%
0.02
%
—
%
1
bps
2
bps
Commercial real estate
—
—
—
—
0.02
—
(2)
Lease financing
0.17
0.14
0.13
0.18
0.11
3
6
Residential mortgage
0.03
0.03
0.02
0.01
0.01
—
2
Home equity
—
—
—
—
0.01
—
(1)
Consumer installment
—
—
—
—
—
—
—
Total delinquencies
0.03
%
0.02
%
0.02
%
0.02
%
0.02
%
1
1
(1)
Excludes nonaccrual loans and leases.
TCF FINANCIAL CORPORATION AND
SUBSIDIARIES
Summary of Credit Quality Data
(Unaudited), Continued
Nonperforming Assets
Change From
Mar. 31,
Dec. 31,
Sep. 30,
Jun. 30,
Mar. 31,
Dec. 31,
Mar. 31,
(Dollars in thousands)
2021
2020
2020
2020
2020
2020
2020
Nonaccrual loans and leases:
Commercial and industrial
$
239,987
$
259,439
$
140,492
$
98,184
$
84,157
$
(19,452
)
$
155,830
Commercial real estate
188,420
154,439
70,252
57,521
47,032
33,981
141,388
Lease financing
93,958
90,822
42,023
18,756
13,170
3,136
80,788
Total commercial
522,365
504,700
252,767
174,461
144,359
17,665
378,006
Residential mortgage
76,533
97,653
65,235
67,762
61,980
(21,120
)
14,553
Home equity
72,941
69,383
52,184
47,560
43,147
3,558
29,794
Consumer installment
6,062
5,566
6,535
1,668
989
496
5,073
Total consumer
155,536
172,602
123,954
116,990
106,116
(17,066
)
49,420
Total nonaccrual loans and leases
677,901
677,302
376,721
291,451
250,475
599
427,426
Other real estate owned
32,115
33,192
35,554
42,744
38,914
(1,077
)
(6,799
)
Total nonperforming assets
$
710,016
$
710,494
$
412,275
$
334,195
$
289,389
$
(478
)
$
420,627
Nonaccrual loans and leases as a
percentage of total loans and leases
1.87
%
1.97
%
1.10
%
0.82
%
0.70
%
(10
)
bps
117
bps
Allowance for loan and lease losses as a
percentage of nonaccrual loans and leases
74.44
77.64
136.77
158.21
162.24
(320
)
(8,780
)
Allowance for credit losses as a
percentage of nonaccrual loans and leases
77.67
81.08
145.83
172.89
171.10
(341
)
(9,343
)
Nonperforming assets as a percentage of
total loans and leases and other real estate owned
1.96
2.06
1.20
0.94
0.80
(10
)
116
Consolidated Capital Information
(Unaudited)
Change From
(Dollars in thousands, except per share
data)
Mar. 31,
Dec. 31,
Sep. 30,
Jun. 30,
Mar. 31,
Dec. 31,
Mar. 31,
2021
2020
2020
2020
2020
2020
2020
Book value per common share
$
35.33
$
36.06
$
35.88
$
35.91
$
35.85
(2.0
)
%
(1.5
)
%
Tangible book value per common
share(1)
25.31
26.49
26.27
26.25
26.16
(4.5
)
(3.2
)
Common equity to assets
10.91
%
11.51
%
11.50
%
10.92
%
11.23
%
(60
)
bps
(32
)
bps
Tangible common equity to tangible
assets(1)
8.06
8.72
8.68
8.22
8.45
(66
)
(39
)
Regulatory Capital:(2)
Common equity Tier 1 capital
$
4,101,896
$
4,103,007
$
4,053,931
$
4,028,681
$
4,026,304
0.0
%
1.9
%
Tier 1 capital
4,299,135
4,290,793
4,244,609
4,221,283
4,225,755
0.2
1.7
Total capital
4,994,676
5,026,611
4,972,715
4,907,760
4,744,899
(0.6
)
5.3
Common equity Tier 1 capital ratio
11.06
%
11.45
%
11.45
%
11.06
%
10.44
%
(39
)
bps
62
bps
Tier 1 risk-based capital ratio
11.59
11.98
11.98
11.59
10.96
(39
)
63
Total risk-based capital ratio
13.47
14.03
14.04
13.47
12.31
(56
)
116
Tier 1 leverage ratio
9.09
9.34
8.83
8.75
9.27
(25
)
(18
)
(1)
See "Reconciliation of GAAP to Non-GAAP
Financial Measures" tables.
(2)
March 31, 2021 amounts are preliminary
pending completion and filing of the Corporation's regulatory
reports. Regulatory capital ratios presented reflect our election
of the five-year CECL transition for regulatory capital
purposes.
TCF FINANCIAL CORPORATION AND
SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP
Financial Measures (Unaudited)
Computation of adjusted diluted
earnings per common share and adjusted net income:
Quarter Ended
Mar. 31,
Dec. 31,
Sep. 30,
Jun. 30,
Mar. 31,
(Dollars in thousands, except per share
data)
2021
2020
2020
2020
2020
Net income available to common
shareholders
(a)
$
120,843
$
88,864
$
53,244
$
21,270
$
49,406
Merger-related expenses
16,216
31,530
54,011
81,619
36,728
Notable items:
Sale of legacy TCF auto finance portfolio
and related expenses(1)
—
—
—
901
3,063
Gains on sales of branches, write-down of
company-owned vacant land parcels and branch exit costs, net(2)
—
—
—
(14,166
)
—
Loan servicing rights (recovery)
impairment(3)
(7,637
)
357
154
8,858
8,236
Total notable items
(7,637
)
357
154
(4,407
)
11,299
Total merger-related and notable items
8,579
31,887
54,165
77,212
48,027
Related income tax expense, net of
benefits(4)
(1,841
)
(7,191
)
(11,207
)
(16,114
)
(10,071
)
Total adjustments, net of tax
6,738
24,696
42,958
61,098
37,956
Adjusted earnings allocated to common
stock
(b)
$
127,581
$
113,560
$
96,202
$
82,368
$
87,362
Weighted-average common shares outstanding
used in diluted earnings per common share calculation
(c)
152,540,687
152,084,428
151,821,592
151,660,139
152,114,017
Diluted earnings per common share
(a)/(c)
$
0.79
$
0.58
$
0.35
$
0.14
$
0.32
Adjusted diluted earnings per common
share
(b)/(c)
0.84
0.75
0.63
0.54
0.57
Net income attributable to TCF
$
123,336
$
91,358
$
55,738
$
23,764
$
51,899
Total adjustments, net of tax
6,738
24,696
42,958
61,098
37,956
Adjusted net income attributable to
TCF
$
130,074
$
116,054
$
98,696
$
84,862
$
89,855
(1)
Second quarter 2020 amount included within
other noninterest expense ($0.8 million) and compensation and
employee benefits ($0.1 million). First quarter 2020 amount
included within occupancy and equipment ($1.6 million),
compensation and employee benefits ($0.9 million) and other
noninterest expense ($0.6 million).
(2)
Second quarter 2020 amount included within
other noninterest income ($14.7 million net gain) and other
noninterest expense ($0.6 million).
(3)
Included within mortgage banking
income.
(4)
Included within income tax expense
(benefit).
TCF FINANCIAL CORPORATION AND
SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP
Financial Measures (Unaudited), Continued
Computation of adjusted return on
average assets, common equity and average tangible common
equity:
Quarter Ended
Mar. 31,
Dec. 31,
Sep. 30,
Jun. 30,
Mar. 31,
(Dollars in thousands)
2021
2020
2020
2020
2020
Adjusted net income after income tax
expense (benefit):
Income after tax expense
(a)
$
125,109
$
92,690
$
57,302
$
26,233
$
53,816
Merger-related expenses
16,216
31,530
54,011
81,619
36,728
Notable items
(7,637
)
357
154
(4,407
)
11,299
Related income tax expense, net of tax
benefits
(1,841
)
(7,191
)
(11,207
)
(16,114
)
(10,071
)
Adjusted net income after income tax
expense (benefit) for adjusted ROAA calculation
(b)
131,847
117,386
100,260
87,331
91,772
Net income available to common
shareholders
(c)
120,843
88,864
53,244
21,270
49,406
Other intangibles amortization
5,168
5,498
5,498
5,516
5,480
Related income tax expense
(1,109
)
(1,240
)
(1,137
)
(1,151
)
(1,149
)
Adjusted net income available to common
shareholders used in adjusted ROATCE calculation
(d)
124,902
93,122
57,605
25,635
53,737
Adjusted net income available to common
shareholders:
Net income available to common
shareholders
120,843
88,864
53,244
21,270
49,406
Notable items
(7,637
)
357
154
(4,407
)
11,299
Merger-related expenses
16,216
31,530
54,011
81,619
36,728
Related income tax expense, net of tax
benefits
(1,841
)
(7,191
)
(11,207
)
(16,114
)
(10,071
)
Adjusted net income available to common
shareholders used in adjusted ROACE calculation
(e)
127,581
113,560
96,202
82,368
87,362
Other intangibles amortization
5,168
5,498
5,498
5,516
5,480
Related income tax expense
(1,109
)
(1,240
)
(1,137
)
(1,151
)
(1,149
)
Adjusted net income available to common
shareholders used in adjusted ROATCE calculation
(f)
131,640
117,818
100,563
86,733
91,693
Average balances:
Average assets
(g)
48,750,758
47,361,520
49,539,600
49,716,116
46,985,426
Total equity
5,696,284
5,707,191
5,697,727
5,658,255
5,630,487
Non-controlling interest in
subsidiaries
(22,630
)
(19,995
)
(22,638
)
(28,122
)
(25,328
)
Total TCF Financial Corporation
shareholders' equity
5,673,654
5,687,196
5,675,089
5,630,133
5,605,159
Preferred stock
(169,302
)
(169,302
)
(169,302
)
(169,302
)
(169,302
)
Average total common shareholders' equity
used in ROACE calculation
(h)
5,504,352
5,517,894
5,505,787
5,460,831
5,435,857
Goodwill, net
(1,363,039
)
(1,313,046
)
(1,313,046
)
(1,313,046
)
(1,301,080
)
Other intangibles, net
(146,763
)
(149,140
)
(155,142
)
(160,841
)
(166,298
)
Average tangible common shareholders'
equity used in ROATCE calculation
(i)
$
3,994,550
$
4,055,708
$
4,037,599
$
3,986,944
$
3,968,479
ROAA(1)
(a)/(g)
1.03
%
0.78
%
0.46
%
0.21
%
0.46
%
Adjusted ROAA(1)
(b)/(g)
1.08
0.99
0.81
0.70
0.78
ROACE(1)
(c)/(h)
8.78
6.44
3.87
1.56
3.64
Adjusted ROACE(1)
(e)/(h)
9.27
8.23
6.99
6.03
6.43
ROATCE(1)
(d)/(i)
12.51
9.18
5.71
2.57
5.42
Adjusted ROATCE(1)
(f)/(i)
13.18
11.62
9.96
8.70
9.24
(1)
Annualized.
TCF FINANCIAL CORPORATION AND
SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP
Financial Measures (Unaudited), Continued
Computation of adjusted efficiency
ratio, interest income, noninterest income and noninterest
expense:
Quarter Ended
Mar. 31,
Dec. 31,
Sep. 30,
Jun. 30,
Mar. 31,
(Dollars in thousands)
2021
2020
2020
2020
2020
Noninterest expense
(a)
$
348,682
$
379,091
$
373,440
$
400,241
$
374,599
Merger-related expenses
(16,216
)
(31,530
)
(54,011
)
(81,619
)
(36,728
)
Write-down of company-owned vacant land
parcels and branch exit costs
—
—
—
(551
)
—
Expenses related to the sale of Legacy TCF
auto finance portfolio
—
—
—
(901
)
(3,063
)
Adjusted noninterest expense
332,466
347,561
319,429
317,170
334,808
Lease financing equipment depreciation
(20,426
)
(18,610
)
(17,932
)
(18,212
)
(18,450
)
Amortization of intangibles
(5,168
)
(5,498
)
(5,498
)
(5,516
)
(5,480
)
Historic tax credit amortization
(543
)
(3,591
)
(1,758
)
(179
)
(1,521
)
Adjusted noninterest expense, efficiency
ratio
(b)
306,329
319,862
294,241
293,263
309,357
Net interest income
381,827
381,394
377,167
378,359
401,481
Noninterest income
132,060
127,236
118,810
133,054
136,963
Total revenue
(c)
513,887
508,630
495,977
511,413
538,444
Noninterest income
132,060
127,236
118,810
133,054
136,963
Gain on sales of branches
—
—
—
(14,717
)
—
Loan servicing rights (recovery)
impairment
(7,637
)
357
154
8,858
8,236
Adjusted noninterest income
124,423
127,593
118,964
127,195
145,199
Net interest income
381,827
381,394
377,167
378,359
401,481
Adjustments for taxable equivalent
interest (FTE)
2,810
3,228
2,844
3,032
2,983
Net interest income (FTE)
384,637
384,622
380,011
381,391
404,464
Lease financing equipment depreciation
(20,426
)
(18,610
)
(17,932
)
(18,212
)
(18,450
)
Adjusted total revenue, efficiency
ratio
(d)
$
488,634
$
493,605
$
481,043
$
490,374
$
531,213
Efficiency ratio
(a)/(c)
67.85
%
74.53
%
75.29
%
78.26
%
69.57
%
Adjusted efficiency ratio
(b)/(d)
62.69
64.80
61.17
59.80
58.24
TCF FINANCIAL CORPORATION AND
SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP
Financial Measures (Unaudited), Continued
Computation of adjusted net interest
income and margin:
Quarter Ended
Mar. 31,
Dec. 31,
Sep. 30,
Jun. 30,
Mar. 31,
(Dollars in thousands)
2021
2020
2020
2020
2020
Net interest income
$
381,827
$
381,394
$
377,167
$
378,359
$
401,481
Adjustments for taxable equivalent
interest (FTE)
2,810
3,228
2,844
3,032
2,983
Net interest income (FTE)
384,637
384,622
380,011
381,391
404,464
Purchase accounting accretion and
amortization(1)
(15,043
)
(22,997
)
(17,710
)
(18,209
)
(25,258
)
Net fees recognized on PPP loans
(14,607
)
(16,071
)
(11,886
)
(7,805
)
—
Interest recognition on PPP loans(2)
(3,201
)
(3,051
)
(2,824
)
(1,759
)
—
Total PPP loans impact
(17,808
)
(19,122
)
(14,710
)
(9,564
)
—
Adjusted net interest income (FTE),
excluding purchase accounting accretion and amortization and PPP
impact
$
351,786
$
342,503
$
347,591
$
353,618
$
379,206
Net interest margin (GAAP)
3.45
%
3.53
%
3.31
%
3.33
%
3.73
%
FTE impact
0.02
0.02
0.03
0.02
0.03
Net interest margin (FTE)
3.47
3.55
3.34
3.35
3.76
Purchase accounting accretion and
amortization impact
(0.14
)
(0.21
)
(0.16
)
(0.16
)
(0.23
)
PPP loans impact(3)
(0.03
)
(0.04
)
0.01
0.01
—
Adjusted net interest margin (FTE),
excluding purchase accounting accretion and amortization and PPP
loans impact
3.30
%
3.30
%
3.19
%
3.20
%
3.53
%
(1)
Includes purchase accounting accretion and amortization
resulting from the TCF/Chemical merger.
(2)
Interest income recorded on PPP loans less funding costs.
(3)
The exclusion of PPP loans additionally reduces average earning
assets by $1.7 billion in the first quarter of 2021 and by $1.7
billion, $1.8 billion and $1.2 billion in the fourth, third and
second quarters of 2020, respectively.
Computation of tangible common equity
to tangible assets and tangible book value per common
share:
Mar. 31,
Dec. 31,
Sep. 30,
Jun. 30,
Mar. 31,
(Dollars in thousands, except per share
data)
2021
2020
2020
2020
2020
Total equity
$
5,591,771
$
5,689,297
$
5,658,420
$
5,658,555
$
5,655,833
Non-controlling interest in
subsidiaries
(27,937
)
(18,484
)
(21,376
)
(23,300
)
(30,149
)
Total TCF Financial Corporation
shareholders' equity
5,563,834
5,670,813
5,637,044
5,635,255
5,625,684
Preferred stock
(169,302
)
(169,302
)
(169,302
)
(169,302
)
(169,302
)
Total common stockholders' equity
(a)
5,394,532
5,501,511
5,467,742
5,465,953
5,456,382
Goodwill, net
(1,379,890
)
(1,313,046
)
(1,313,046
)
(1,313,046
)
(1,313,046
)
Other intangibles, net
(149,438
)
(146,377
)
(151,875
)
(157,373
)
(162,887
)
Tangible common shareholders' equity
(b)
3,865,204
4,042,088
4,002,821
3,995,534
3,980,449
Total assets
(c)
49,459,551
47,802,487
47,565,789
50,062,460
48,594,383
Goodwill, net
(1,379,890
)
(1,313,046
)
(1,313,046
)
(1,313,046
)
(1,313,046
)
Other intangibles, net
(149,438
)
(146,377
)
(151,875
)
(157,373
)
(162,887
)
Tangible assets
(d)
$
47,930,223
$
46,343,064
$
46,100,868
$
48,592,041
$
47,118,450
Common stock shares outstanding
(e)
152,696,133
152,565,504
152,379,722
152,233,106
152,185,984
Common equity to assets
(a) / (c)
10.91
%
11.51
%
11.50
%
10.92
%
11.23
%
Tangible common equity to tangible
assets
(b) / (d)
8.06
8.72
8.68
8.22
8.45
Book value per common share
(a) / (e)
$
35.33
$
36.06
$
35.88
$
35.91
$
35.85
Tangible book value per common share
(b) / (e)
25.31
26.49
26.27
26.25
26.16
TCF FINANCIAL CORPORATION AND
SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP
Financial Measures (Unaudited), Continued
Computation of loans and leases and the
related allowance for credit losses excluding PPP
Quarter Ended
Change From
Mar. 31,
Dec. 31,
Sep. 30,
Jun. 30,
Mar. 31,
Dec. 31, 2020
(Dollars in thousands)
2021
2020
2020
2020
2020
$
%
Commercial and industrial
$
12,856,701
$
11,422,383
$
11,557,237
$
12,200,721
$
12,326,943
$
1,434,318
12.6
%
Commercial real estate
9,881,341
9,702,587
9,627,330
9,628,344
9,486,904
178,754
1.8
Lease financing
2,956,626
2,817,231
2,724,686
2,707,402
2,708,998
139,395
4.9
Total commercial loan and lease
portfolio
25,694,668
23,942,201
23,909,253
24,536,467
24,522,845
1,752,467
7.3
Residential mortgage
6,510,981
6,182,045
5,790,251
6,123,118
6,435,314
328,936
5.3
Home equity
2,864,142
3,108,736
3,302,983
3,445,584
3,453,502
(244,594
)
(7.9
)
Consumer installment
1,151,228
1,233,426
1,341,204
1,430,655
1,509,953
(82,198
)
(6.7
)
Total consumer loan portfolio
10,526,351
10,524,207
10,434,438
10,999,357
11,398,769
2,144
0.0
Total loans and leases
36,221,019
34,466,408
34,343,691
35,535,824
35,921,614
1,754,611
5.1
PPP (Commercial and industrial)
1,865,319
1,553,908
1,836,850
1,819,469
—
311,411
20.0
Loans and leases excluding PPP loans
Commercial and industrial
10,991,382
9,868,475
9,720,387
10,381,252
12,326,943
1,122,907
11.4
Commercial real estate
9,881,341
9,702,587
9,627,330
9,628,344
9,486,904
178,754
1.8
Lease financing
2,956,626
2,817,231
2,724,686
2,707,402
2,708,998
139,395
4.9
Total commercial loan and lease
portfolio
23,829,349
22,388,293
22,072,403
22,716,998
24,522,845
1,441,056
6.4
Residential mortgage
6,510,981
6,182,045
5,790,251
6,123,118
6,435,314
328,936
5.3
Home equity
2,864,142
3,108,736
3,302,983
3,445,584
3,453,502
(244,594
)
(7.9
)
Consumer installment
1,151,228
1,233,426
1,341,204
1,430,655
1,509,953
(82,198
)
(6.7
)
Total consumer loan portfolio
10,526,351
10,524,207
10,434,438
10,999,357
11,398,769
2,144
0.0
Total loans and leases, excluding PPP
loans
$
34,355,700
$
32,912,500
$
32,506,841
$
33,716,355
$
35,921,614
$
1,443,200
4.4
Allowance for credit losses
$
526,554
$
549,181
$
549,358
$
503,902
$
428,571
$
(22,627
)
(4.1
)%
Allowance for credit losses as a % of
total loans and leases
1.45
%
1.59
%
1.60
%
1.42
%
1.19
%
(14
)
bps
Allowance for credit losses as a % of
loans and leases, excluding PPP loans
1.53
1.67
1.69
1.49
1.19
(14
)
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Randi Berris (248) 608-5239 news@tcfbank.com (Media)
Timothy Sedabres (952) 745-2766 investor@tcfbank.com
(Investors)
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