
Contact: | ||||
Randi Berris | (248) 608-5239 | news@tcfbank.com | (Media) | |
Timothy Sedabres | (952) 745-2766 | investor@tcfbank.com | (Investors) | |
• | Quarterly net income of $23.8 million, or $0.14 per diluted share, down 54.2% from the first quarter of 2020 |
• | Adjusted diluted earnings per common share of $0.54(1), down 5.3% from the first quarter of 2020. Adjusted diluted earnings per common share excludes $61.1 million, or $0.40 per share, after-tax impact of merger-related expenses and notable items |
• | Assisted customers via COVID-19-related loan and lease deferrals with $1.8 billion of balances on deferral status as of June 30, 2020 ($1.5 billion of commercial balances and $327.1 million of consumer balances) |
• | Assisted business and commercial customers via $1.9 billion of total loans funded through the Paycheck Protection Program ("PPP") |
• | Completed the sale of seven Arizona branches resulting in a gain on sale of $14.7 million |
• | Loan and lease balances declined 1.1% from March 31, 2020, primarily due to declines in the commercial and industrial and residential mortgage portfolios, partially offset by the addition of $1.8 billion of Paycheck Protection Program ("PPP") loans |
• | Deposit growth of 9.5% compared to March 31, 2020 |
• | Net charge-offs of $3.4 million, or 0.04% of average loans and leases (annualized) |
• | Provision for credit losses of $78.7 million, down 18.8% from the first quarter of 2020 |
• | Efficiency ratio of 78.26%, up 869 basis points from the first quarter of 2020. Adjusted efficiency ratio of 59.80%(1), up 156 basis points from the first quarter of 2020 |
• | Common equity Tier 1 capital ratio of 11.09%, compared to 10.44% at March 31, 2020 |
• | Declared quarterly cash dividends on common stock of $0.35 per share payable on September 1, 2020 |
• | Pre-tax merger-related expenses of $81.6 million, $64.6 million net of tax, or $0.42 per diluted common share for the second quarter of 2020, compared to pre-tax merger-related expenses of $36.7 million, $29.0 million net of tax, or $0.19 per diluted common share for the first quarter of 2020 |
• | Pre-tax income, net of expenses, of $4.4 million, $3.5 million net of tax, or $0.02 per diluted common share related to notable items for the second quarter of 2020, compared to pre-tax net expenses of $11.3 million, $8.9 million net of tax, or $0.06 per diluted common share related to notable items for the first 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(1) | ||||||||||||||||||||||||||
At or For the Quarter Ended | Change From | |||||||||||||||||||||||||
Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Jun. 30, | ||||||||||||||||||||
(Dollars in thousands, except per share data) | 2020 | 2020 | 2019 | 2019 | 2019 | 2020 | 2019 | |||||||||||||||||||
Financial Results | ||||||||||||||||||||||||||
Net income attributable to TCF | $ | 23,764 | $ | 51,899 | $112,399 | $ | 22,148 | $ | 90,427 | (54.2 | ) | % | (73.7 | ) | % | |||||||||||
Net interest income | 378,359 | 401,481 | 408,753 | 371,793 | 254,057 | (5.8 | ) | 48.9 | ||||||||||||||||||
Basic earnings per common share | $ | 0.14 | $ | 0.33 | $ | 0.72 | $ | 0.15 | $ | 1.07 | (57.6 | ) | (86.9 | ) | ||||||||||||
Diluted earnings per common share | 0.14 | 0.32 | 0.72 | 0.15 | 1.07 | (56.3 | ) | (86.9 | ) | |||||||||||||||||
Return on average assets ("ROAA")(3) | 0.21 | % | 0.46 | % | 0.99 | % | 0.26 | % | 1.54 | % | (25 | ) | bps | (133 | ) | bps | ||||||||||
ROACE(3) | 1.56 | 3.64 | 8.00 | 1.75 | 14.27 | (208 | ) | (1,271 | ) | |||||||||||||||||
ROATCE (non-GAAP)(2)(3) | 2.57 | 5.42 | 11.35 | 2.68 | 15.46 | (285 | ) | (1,289 | ) | |||||||||||||||||
Net interest margin | 3.33 | 3.73 | 3.86 | 4.12 | 4.46 | (40 | ) | (113 | ) | |||||||||||||||||
Net interest margin (FTE)(2)(3) | 3.35 | 3.76 | 3.89 | 4.14 | 4.49 | (41 | ) | (114 | ) | |||||||||||||||||
Net charge-offs as a percentage of average loans and leases(3) | 0.04 | 0.06 | 0.07 | 0.39 | 0.29 | (2 | ) | (25 | ) | |||||||||||||||||
Nonperforming assets as a percentage of total loans and leases and other real estate owned(4) | 0.94 | 0.80 | 0.59 | 0.62 | 0.62 | 14 | 32 | |||||||||||||||||||
Efficiency ratio | 78.26 | 69.57 | 73.49 | 91.32 | 65.11 | 869 | 1,315 | |||||||||||||||||||
Adjusted Financial Results (non-GAAP) | ||||||||||||||||||||||||||
Adjusted net income attributable to TCF(2) | $ | 84,862 | $ | 89,855 | $161,581 | $128,301 | $ | 93,650 | (5.6 | ) | % | (9.4 | ) | % | ||||||||||||
Adjusted diluted earnings per common share(2) | $ | 0.54 | $ | 0.57 | $ | 1.04 | $ | 0.98 | $ | 1.11 | (5.3 | ) | (51.4 | ) | ||||||||||||
Adjusted ROAA(2)(3) | 0.70 | % | 0.78 | % | 1.42 | % | 1.34 | % | 1.59 | % | (8 | ) | bps | (89 | ) | bps | ||||||||||
Adjusted ROACE(2)(3) | 6.03 | 6.43 | 11.57 | 11.21 | 14.79 | (40 | ) | (876 | ) | |||||||||||||||||
Adjusted ROATCE(2)(3) | 8.70 | 9.24 | 16.25 | 14.96 | 16.02 | (54 | ) | (732 | ) | |||||||||||||||||
Adjusted efficiency ratio(2) | 59.80 | 58.24 | 58.51 | 58.74 | 61.48 | 156 | (168 | ) | ||||||||||||||||||
(1) | Financial results for any periods ended prior to August 1, 2019 reflect Legacy TCF financials on a standalone basis. Certain reclassifications have been made to prior period financial information to conform to the current period presentation. |
(2) | Denotes a non-GAAP financial measure. See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables. |
(3) | Annualized. |
(4) | Prior to the adoption of CECL as of January 1, 2020, purchased credit impaired loans were not classified as nonaccrual loans because they were recorded at their net realizable value based on the principal and interest expected to be collected on the loans. At January 1, 2020, $73.4 million of previous purchased credit impaired loans were reclassified to nonaccrual loans as a result of the adoption of CECL. |
For the Quarter Ended June 30, 2020 | For the Quarter Ended March 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 | $ | (81,619 | ) | $ | (64,585 | ) | $ | (0.42 | ) | $ | (36,728 | ) | (29,026 | ) | $ | (0.19 | ) | ||||||
Notable items: | |||||||||||||||||||||||
Expenses related to the sale of Legacy TCF auto finance portfolio(2) | (901 | ) | (713 | ) | — | (3,063 | ) | (2,421 | ) | (0.02 | ) | ||||||||||||
Branch sales and exit costs, net(3) | 14,166 | 11,210 | 0.07 | — | — | — | |||||||||||||||||
Loan servicing rights impairment(4) | (8,858 | ) | (7,009 | ) | (0.05 | ) | (8,236 | ) | (6,509 | ) | (0.04 | ) | |||||||||||
Total notable items | 4,407 | 3,488 | 0.02 | (11,299 | ) | (8,930 | ) | (0.06 | ) | ||||||||||||||
Total merger-related and notable items | $ | (77,212 | ) | $ | (61,097 | ) | $ | (0.40 | ) | $ | (48,027 | ) | $ | (37,956 | ) | $ | (0.25 | ) | |||||
(1) | Net of tax benefit at our normal tax rate and other tax benefits. |
(2) | Second quarter of 2020 included within other noninterest expense ($0.8 million) and compensation and employee benefits ($0.1 million). First quarter of 2020 included within occupancy and equipment ($1.6 million), compensation and employee benefits ($0.9 million) and other noninterest expense ($0.6 million). |
(3) | Included within other noninterest income ($14.7 million net gain) and other noninterest expense ($0.6 million). |
(4) | Included within other noninterest income. |
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||
Consolidated Statements of Financial Condition (Unaudited) | ||||||||||||||||||||||||||||
Change From | ||||||||||||||||||||||||||||
(Dollars in thousands) | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, 2020 | Jun. 30, 2019 | |||||||||||||||||||||
2020 | 2020 | 2019 | 2019 | 2019 | $ | % | $ | % | ||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||||||
Cash and due from banks | $ | 535,507 | $ | 713,413 | $ | 491,787 | $ | 586,060 | $ | 294,566 | $ | (177,906 | ) | (24.9)% | $ | 240,941 | 81.8% | |||||||||||
Interest-bearing deposits with other banks | 2,545,170 | 565,458 | 736,584 | 736,954 | 260,705 | 1,979,712 | N.M. | 2,284,465 | N.M. | |||||||||||||||||||
Total cash and cash equivalents | 3,080,677 | 1,278,871 | 1,228,371 | 1,323,014 | 555,271 | 1,801,806 | 140.9 | 2,525,406 | N.M. | |||||||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost | 386,483 | 484,461 | 442,440 | 290,238 | 105,659 | (97,978 | ) | (20.2) | 280,824 | N.M. | ||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||
Available-for-sale, at fair value | 7,219,373 | 7,025,224 | 6,720,001 | 5,579,835 | 3,109,803 | 194,149 | 2.8 | 4,109,570 | 132.1 | |||||||||||||||||||
Held-to-maturity, at amortized cost | 130,101 | 135,619 | 139,445 | 144,000 | 144,919 | (5,518 | ) | (4.1) | (14,818 | ) | (10.2) | |||||||||||||||||
Total investment securities | 7,349,474 | 7,160,843 | 6,859,446 | 5,723,835 | 3,254,722 | 188,631 | 2.6 | 4,094,752 | 125.8 | |||||||||||||||||||
Loans and leases held-for-sale | 532,799 | 287,177 | 199,786 | 1,436,069 | 74,410 | 245,622 | 85.5 | 458,389 | N.M. | |||||||||||||||||||
Loans and leases | 35,535,824 | 35,921,614 | 34,497,464 | 33,510,752 | 19,185,137 | (385,790 | ) | (1.1) | 16,350,687 | 85.2 | ||||||||||||||||||
Allowance for loan and lease losses | (461,114 | ) | (406,383 | ) | (113,052 | ) | (121,218 | ) | (146,503 | ) | (54,731 | ) | (13.5) | (314,611 | ) | N.M. | ||||||||||||
Loans and leases, net | 35,074,710 | 35,515,231 | 34,384,412 | 33,389,534 | 19,038,634 | (440,521 | ) | (1.2) | 16,036,076 | 84.2 | ||||||||||||||||||
Premises and equipment, net | 472,240 | 516,454 | 533,138 | 554,194 | 432,751 | (44,214 | ) | (8.6) | 39,489 | 9.1 | ||||||||||||||||||
Goodwill | 1,313,046 | 1,313,046 | 1,299,878 | 1,265,111 | 154,757 | 0 | 0.0 | 1,158,289 | N.M. | |||||||||||||||||||
Other intangible assets, net | 157,373 | 162,887 | 168,368 | 215,910 | 18,885 | (5,514 | ) | (3.4) | 138,488 | N.M. | ||||||||||||||||||
Loan servicing rights | 38,816 | 47,283 | 56,313 | 55,301 | 19 | (8,467 | ) | (17.9) | 38,797 | N.M. | ||||||||||||||||||
Other assets | 1,656,842 | 1,828,130 | 1,479,401 | 1,439,305 | 991,722 | (171,288 | ) | (9.4) | 665,120 | 67.1 | ||||||||||||||||||
Total assets | $ | 50,062,460 | $ | 48,594,383 | $ | 46,651,553 | $ | 45,692,511 | $ | 24,626,830 | $ | 1,468,077 | 3.0 | $ | 25,435,630 | 103.3% | ||||||||||||
LIABILITIES AND EQUITY: | ||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||
Noninterest-bearing | $ | 10,480,245 | $ | 8,237,916 | $ | 7,970,590 | $ | 7,979,900 | $ | 4,062,912 | $ | 2,242,329 | 27.2% | $ | 6,417,333 | 157.9% | ||||||||||||
Interest-bearing | 28,730,627 | 27,561,387 | 26,497,873 | 27,306,174 | 15,049,475 | 1,169,240 | 4.2 | 13,681,152 | 90.9 | |||||||||||||||||||
Total deposits | 39,210,872 | 35,799,303 | 34,468,463 | 35,286,074 | 19,112,387 | 3,411,569 | 9.5 | 20,098,485 | 105.2 | |||||||||||||||||||
Short-term borrowings | 2,772,998 | 3,482,535 | 2,669,145 | 2,607,300 | 350,764 | (709,537 | ) | (20.4) | 2,422,234 | N.M. | ||||||||||||||||||
Long-term borrowings | 936,908 | 2,600,594 | 2,354,448 | 860,482 | 1,617,531 | (1,663,686 | ) | (64.0) | (680,623) | (42.1) | ||||||||||||||||||
Other liabilities | 1,483,127 | 1,056,118 | 1,432,256 | 1,245,238 | 835,630 | 427,009 | 40.4 | 647,497 | 77.5 | |||||||||||||||||||
Total liabilities | 44,403,905 | 42,938,550 | 40,924,312 | 39,999,094 | 21,916,312 | 1,465,355 | 3.4 | 22,487,593 | 102.6 | |||||||||||||||||||
Equity: | ||||||||||||||||||||||||||||
Preferred stock | 169,302 | 169,302 | 169,302 | 169,302 | 169,302 | — | — | — | — | |||||||||||||||||||
Common stock | 152,233 | 152,186 | 152,966 | 153,571 | 87,944 | 47 | 0.0 | 64,289 | 73.1 | |||||||||||||||||||
Additional paid-in capital | 3,441,925 | 3,433,234 | 3,462,080 | 3,478,159 | 781,788 | 8,691 | 0.3 | 2,660,137 | N.M. | |||||||||||||||||||
Retained earnings | 1,700,480 | 1,732,932 | 1,896,427 | 1,840,214 | 1,874,308 | (32,452 | ) | (1.9) | (173,828) | (9.3) | ||||||||||||||||||
Accumulated other comprehensive income | 198,408 | 166,170 | 54,277 | 56,228 | 37,334 | 32,238 | 19.4 | 161,074 | N.M. | |||||||||||||||||||
Treasury stock at cost and other | (27,093 | ) | (28,140 | ) | (28,037 | ) | (27,370 | ) | (265,017 | ) | 1,047 | 3.7 | 237,924 | 89.8 | ||||||||||||||
Total TCF Financial Corporation shareholders' equity | 5,635,255 | 5,625,684 | 5,707,015 | 5,670,104 | 2,685,659 | 9,571 | 0.2 | 2,949,596 | 109.8 | |||||||||||||||||||
Non-controlling interest | 23,300 | 30,149 | 20,226 | 23,313 | 24,858 | (6,849 | ) | (22.7) | (1,558) | (6.3) | ||||||||||||||||||
Total equity | 5,658,555 | 5,655,833 | 5,727,241 | 5,693,417 | 2,710,517 | 2,722 | 0.0 | 2,948,038 | 108.8 | |||||||||||||||||||
Total liabilities and equity | $ | 50,062,460 | $ | 48,594,383 | $ | 46,651,553 | $ | 45,692,511 | $ | 24,626,829 | $ | 1,468,077 | 3.0 | $ | 25,435,631 | 103.3% | ||||||||||||
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||||||
Consolidated Statements of Income (Unaudited) | |||||||||||||||||||||||||||||||
Quarter Ended | Change From | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, 2020 | Jun. 30, 2019 | ||||||||||||||||||||||||
2020 | 2020 | 2019 | 2019 | 2019 | $ | % | $ | % | |||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||||
Interest and fees on loans and leases | $ | 392,826 | $ | 443,096 | $ | 446,738 | $ | 417,370 | $ | 283,282 | $ | (50,270 | ) | (11.3)% | $ | 109,544 | 38.7% | ||||||||||||||
Interest on investment securities: | |||||||||||||||||||||||||||||||
Taxable | 32,505 | 40,920 | 36,282 | 31,038 | 22,041 | (8,415 | ) | (20.6) | 10,464 | 47.5 | |||||||||||||||||||||
Tax-exempt | 4,155 | 4,349 | 4,374 | 3,385 | 1,208 | (194 | ) | (4.5) | 2,947 | N.M. | |||||||||||||||||||||
Interest on loans held-for-sale | 3,322 | 1,561 | 15,767 | 1,408 | 599 | 1,761 | 112.8 | 2,723 | N.M. | ||||||||||||||||||||||
Interest on other earning assets | 5,562 | 5,466 | 6,617 | 6,607 | 3,651 | 96 | 1.8 | 1,911 | 52.3 | ||||||||||||||||||||||
Total interest income | 438,370 | 495,392 | 509,778 | 459,808 | 310,781 | (57,022 | ) | (11.5) | 127,589 | 41.1 | |||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||||||
Interest on deposits | 46,785 | 67,419 | 77,003 | 70,900 | 40,646 | (20,634 | ) | (30.6) | 6,139 | 15.1 | |||||||||||||||||||||
Interest on borrowings | 13,226 | 26,492 | 24,022 | 17,115 | 16,078 | (13,266 | ) | (50.1) | (2,852 | ) | (17.7) | ||||||||||||||||||||
Total interest expense | 60,011 | 93,911 | 101,025 | 88,015 | 56,724 | (33,900 | ) | (36.1) | 3,287 | 5.8 | |||||||||||||||||||||
Net interest income | 378,359 | 401,481 | 408,753 | 371,793 | 254,057 | (23,122 | ) | (5.8) | 124,302 | 48.9 | |||||||||||||||||||||
Provision for credit losses | 78,726 | 96,943 | 14,403 | 27,188 | 13,569 | (18,217 | ) | (18.8) | 65,157 | N.M. | |||||||||||||||||||||
Net interest income after provision for credit losses | 299,633 | 304,538 | 394,350 | 344,605 | 240,488 | (4,905 | ) | (1.6) | 59,145 | 24.6 | |||||||||||||||||||||
Noninterest income: | |||||||||||||||||||||||||||||||
Leasing revenue | 37,172 | 33,565 | 46,686 | 39,590 | 39,277 | 3,607 | 10.7 | (2,105 | ) | (5.4) | |||||||||||||||||||||
Fees and service charges on deposit accounts | 22,832 | 34,597 | 39,356 | 34,384 | 27,842 | (11,765 | ) | (34.0) | (5,010 | ) | (18.0) | ||||||||||||||||||||
Net gains (losses) on sales of loans and leases | 29,034 | 20,590 | 12,934 | (5,984 | ) | 11,141 | 8,444 | 41.0 | 17,893 | 160.6 | |||||||||||||||||||||
Card and ATM revenue | 20,636 | 21,685 | 24,751 | 23,315 | 20,496 | (1,049 | ) | (4.8) | 140 | 0.7 | |||||||||||||||||||||
Wealth management revenue | 6,206 | 6,151 | 6,172 | 4,241 | — | 55 | 0.9 | 6,206 | N.M. | ||||||||||||||||||||||
Servicing fee revenue | 3,041 | 6,792 | 6,022 | 5,121 | 4,523 | (3,751 | ) | (55.2) | (1,482 | ) | (32.8) | ||||||||||||||||||||
Net gains on investment securities | 8 | — | 8 | 5,900 | 1,066 | 8 | N.M. | (1,058 | ) | (99.2) | |||||||||||||||||||||
Other | 14,125 | 13,583 | 22,123 | (12,309 | ) | 5,373 | 542 | 4.0 | 8,752 | 162.9 | |||||||||||||||||||||
Total noninterest income | 133,054 | 136,963 | 158,052 | 94,258 | 109,718 | (3,909 | ) | (2.9) | 23,336 | 21.3 | |||||||||||||||||||||
Noninterest expense: | |||||||||||||||||||||||||||||||
Compensation and employee benefits | 171,799 | 171,528 | 180,969 | 155,745 | 116,266 | 271 | 0.2 | 55,533 | 47.8 | ||||||||||||||||||||||
Occupancy and equipment | 54,107 | 57,288 | 56,771 | 49,229 | 41,850 | (3,181 | ) | (5.6) | 12,257 | 29.3 | |||||||||||||||||||||
Lease financing equipment depreciation | 18,212 | 18,450 | 18,629 | 19,408 | 19,133 | (238 | ) | (1.3) | (921 | ) | (4.8) | ||||||||||||||||||||
Net foreclosed real estate and repossessed assets | 998 | 1,859 | 4,242 | 2,203 | 2,448 | (861 | ) | (46.3) | (1,450 | ) | (59.2) | ||||||||||||||||||||
Merger-related expenses | 81,619 | 36,728 | 47,025 | 111,259 | 4,226 | 44,891 | 122.2 | 77,393 | N.M. | ||||||||||||||||||||||
Other | 73,506 | 88,746 | 108,935 | 87,776 | 52,926 | (15,240 | ) | (17.2) | 20,580 | 38.9 | |||||||||||||||||||||
Total noninterest expense | 400,241 | 374,599 | 416,571 | 425,620 | 236,849 | 25,642 | 6.8 | 163,392 | 69.0 | ||||||||||||||||||||||
Income before income tax expense (benefit) | 32,446 | 66,902 | 135,831 | 13,243 | 113,357 | (34,456 | ) | (51.5) | (80,911 | ) | (71.4) | ||||||||||||||||||||
Income tax expense (benefit) | 6,213 | 13,086 | 21,375 | (11,735 | ) | 19,314 | (6,873 | ) | (52.5) | (13,101 | ) | (67.8) | |||||||||||||||||||
Income after income tax expense (benefit) | 26,233 | 53,816 | 114,456 | 24,978 | 94,043 | (27,583 | ) | (51.3) | (67,810 | ) | (72.1) | ||||||||||||||||||||
Income attributable to non-controlling interest | 2,469 | 1,917 | 2,057 | 2,830 | 3,616 | 552 | 28.8 | (1,147 | ) | (31.7) | |||||||||||||||||||||
Net income attributable to TCF Financial Corporation | 23,764 | 51,899 | 112,399 | 22,148 | 90,427 | (28,135 | ) | (54.2) | (66,663 | ) | (73.7) | ||||||||||||||||||||
Preferred stock dividends | 2,494 | 2,493 | 2,494 | 2,494 | 2,494 | 1 | — | — | — | ||||||||||||||||||||||
Net income available to common shareholders | $ | 21,270 | $ | 49,406 | $ | 109,905 | $ | 19,654 | $ | 87,933 | $ | (28,136 | ) | (56.9) | $ | (66,663 | ) | (75.8) | |||||||||||||
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||
Consolidated Statements of Income (Unaudited) | ||||||||||||||
Six Months Ended June 30, | Change | |||||||||||||
(Dollars in thousands, except per share data) | 2020 | 2019 | $ | % | ||||||||||
Interest income: | ||||||||||||||
Interest and fees on loans and leases | $ | 835,922 | $ | 566,520 | $ | 269,402 | 47.6% | |||||||
Interest on investment securities: | ||||||||||||||
Taxable | 73,425 | 38,707 | 34,718 | 89.7 | ||||||||||
Tax-exempt | 8,504 | 3,892 | 4,612 | 118.5 | ||||||||||
Interest on loans held-for-sale | 4,883 | 1,424 | 3,459 | N.M. | ||||||||||
Interest on other earning assets | 11,028 | 7,132 | 3,896 | 54.6 | ||||||||||
Total interest income | 933,762 | 617,675 | 316,087 | 51.2 | ||||||||||
Interest expense: | ||||||||||||||
Interest on deposits | 114,204 | 78,254 | 35,950 | 45.9 | ||||||||||
Interest on borrowings | 39,718 | 30,935 | 8,783 | 28.4 | ||||||||||
Total interest expense | 153,922 | 109,189 | 44,733 | 41.0 | ||||||||||
Net interest income | 779,840 | 508,486 | 271,354 | 53.4 | ||||||||||
Provision for credit losses | 175,669 | 23,691 | 151,978 | N.M. | ||||||||||
Net interest income after provision for credit losses | 604,171 | 484,795 | 119,376 | 24.6 | ||||||||||
Noninterest income: | ||||||||||||||
Leasing revenue | 70,737 | 77,442 | (6,705 | ) | (8.7) | |||||||||
Fees and service charges on deposit accounts | 57,429 | 54,120 | 3,309 | 6.1 | ||||||||||
Net gains on sales of loans and leases | 49,624 | 19,358 | 30,266 | 156.3 | ||||||||||
Card and ATM revenue | 42,321 | 39,155 | 3,166 | 8.1 | ||||||||||
Wealth management revenue | 12,357 | — | 12,357 | N.M. | ||||||||||
Servicing fee revenue | 9,833 | 9,633 | 200 | 2.1 | ||||||||||
Net gains on investment securities | 8 | 1,517 | (1,509 | ) | (99.5) | |||||||||
Other | 27,708 | 11,997 | 15,711 | 131.0 | ||||||||||
Total noninterest income | 270,017 | 213,222 | 56,795 | 26.6 | ||||||||||
Noninterest expense: | ||||||||||||||
Compensation and employee benefits | 343,327 | 240,208 | 103,119 | 42.9 | ||||||||||
Occupancy and equipment | 111,395 | 83,560 | 27,835 | 33.3 | ||||||||||
Lease financing equipment depreciation | 36,662 | 38,389 | (1,727 | ) | (4.5) | |||||||||
Net foreclosed real estate and repossessed assets | 2,857 | 7,078 | (4,221 | ) | (59.6) | |||||||||
Merger-related expenses | 118,347 | 13,684 | 104,663 | N.M. | ||||||||||
Other | 162,252 | 107,005 | 55,247 | 51.6 | ||||||||||
Total noninterest expense | 774,840 | 489,924 | 284,916 | 58.2 | ||||||||||
Income before income tax expense | 99,348 | 208,093 | (108,745 | ) | (52.3) | |||||||||
Income tax expense | 19,299 | 40,601 | (21,302 | ) | (52.5) | |||||||||
Income after income tax expense | 80,049 | 167,492 | (87,443 | ) | (52.2) | |||||||||
Income attributable to non-controlling interest | 4,386 | 6,571 | (2,185 | ) | (33.3) | |||||||||
Net income attributable to TCF Financial Corporation | 75,663 | 160,921 | (85,258 | ) | (53.0) | |||||||||
Preferred stock dividends | 4,987 | 4,987 | — | — | ||||||||||
Net income available to common shareholders | $ | 70,676 | $ | 155,934 | $ | (85,258 | ) | (54.7) | ||||||
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||
Consolidated Average Balance Sheets, Yields and Rates (Unaudited) | |||||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | |||||||||||||||||||||
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 | $ | 401,532 | $ | 4,376 | 4.38% | $ | 454,675 | $ | 3,152 | 2.79% | $ | 112,118 | $ | 1,093 | 3.91% | ||||||||
Investment securities held-to-maturity | 132,054 | 71 | 0.21 | 136,277 | 560 | 1.64 | 146,296 | 924 | 2.53 | ||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||
Taxable | 5,730,762 | 32,434 | 2.26 | 5,892,006 | 40,360 | 2.74 | 2,711,984 | 21,117 | 3.11 | ||||||||||||||
Tax-exempt(3) | 743,744 | 5,221 | 2.81 | 773,468 | 5,503 | 2.85 | 222,534 | 1,530 | 2.75 | ||||||||||||||
Loans and leases held-for-sale | 356,671 | 3,322 | 3.73 | 138,058 | 1,561 | 4.53 | 40,835 | 599 | 5.88 | ||||||||||||||
Loans and leases(3)(4) | |||||||||||||||||||||||
Commercial and industrial | 12,713,714 | 140,576 | 4.41 | 11,827,315 | 160,802 | 5.42 | 6,683,060 | 109,679 | 6.56 | ||||||||||||||
Commercial real estate | 9,658,124 | 95,373 | 3.91 | 9,291,540 | 117,743 | 5.01 | 3,069,969 | 39,204 | 5.05 | ||||||||||||||
Lease financing | 2,712,291 | 33,803 | 4.99 | 2,682,323 | 34,156 | 5.09 | 2,565,175 | 32,899 | 5.13 | ||||||||||||||
Residential mortgage | 6,326,227 | 62,023 | 3.93 | 6,113,279 | 61,379 | 4.02 | 2,337,818 | 28,665 | 4.91 | ||||||||||||||
Home equity | 3,509,107 | 45,314 | 5.19 | 3,514,278 | 51,103 | 5.85 | 2,997,050 | 51,588 | 6.90 | ||||||||||||||
Consumer installment | 1,459,446 | 17,703 | 4.88 | 1,517,412 | 19,742 | 5.23 | 1,586,633 | 22,262 | 5.63 | ||||||||||||||
Total loans and leases(3)(4) | 36,378,909 | 394,792 | 4.33 | 34,946,147 | 444,925 | 5.08 | 19,239,705 | 284,297 | 5.91 | ||||||||||||||
Interest-bearing deposits with banks and other | 1,587,665 | 1,186 | 0.30 | 538,971 | 2,314 | 1.72 | 280,075 | 2,557 | 3.64 | ||||||||||||||
Total interest-earning assets | 45,331,337 | 441,402 | 3.88 | 42,879,602 | 498,375 | 4.64 | 22,753,547 | 312,117 | 5.48 | ||||||||||||||
Other assets | 4,384,779 | 4,105,824 | 1,730,275 | ||||||||||||||||||||
Total assets | $ | 49,716,116 | $ | 46,985,426 | $ | 24,483,822 | |||||||||||||||||
LIABILITIES AND EQUITY: | |||||||||||||||||||||||
Noninterest-bearing deposits | $ | 9,830,687 | $ | 7,929,933 | $ | 3,980,811 | |||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||
Savings | 9,082,184 | 8,930 | 0.40 | 8,589,815 | 13,669 | 0.64 | 6,452,510 | 12,314 | 0.77 | ||||||||||||||
Certificates of deposit | 7,491,502 | 26,744 | 1.44 | 7,329,632 | 33,065 | 1.81 | 4,527,822 | 23,304 | 2.06 | ||||||||||||||
Checking | 6,649,288 | 2,329 | 0.14% | 5,990,309 | 5,830 | 0.39% | 2,479,814 | 440 | 0.07% | ||||||||||||||
Money market | 5,380,547 | 8,782 | 0.66 | 4,792,248 | 14,855 | 1.25 | 1,430,556 | 4,588 | 1.29 | ||||||||||||||
Total interest-bearing deposits | 28,603,521 | 46,785 | 0.66 | 26,702,004 | 67,419 | 1.02 | 14,890,702 | 40,646 | 1.09 | ||||||||||||||
Total deposits | 38,434,208 | 46,785 | 0.49 | 34,631,937 | 67,419 | 0.78 | 18,871,513 | 40,646 | 0.86 | ||||||||||||||
Borrowings: | |||||||||||||||||||||||
Short-term borrowings | 3,016,490 | 4,085 | 0.54 | 2,689,262 | 10,582 | 1.56 | 321,043 | 2,131 | 2.63 | ||||||||||||||
Long-term borrowings | 1,072,394 | 9,141 | 3.40 | 2,608,204 | 15,910 | 2.42 | 1,657,527 | 13,946 | 3.34 | ||||||||||||||
Total borrowings | 4,088,884 | 13,226 | 1.29 | 5,297,466 | 26,492 | 1.98 | 1,978,570 | 16,077 | 3.23 | ||||||||||||||
Total interest-bearing liabilities | 32,692,405 | 60,011 | 0.74 | 31,999,470 | 93,911 | 1.18 | 16,869,272 | 56,723 | 1.34 | ||||||||||||||
Total deposits and borrowings | 42,523,092 | 60,011 | 0.57 | 39,929,403 | 93,911 | 0.94 | 20,850,083 | 56,723 | 1.09 | ||||||||||||||
Accrued expenses and other liabilities | 1,534,769 | 1,425,536 | 969,723 | ||||||||||||||||||||
Total liabilities | 44,057,861 | 41,354,939 | 21,819,806 | ||||||||||||||||||||
Total TCF Financial Corporation shareholders' equity | 5,630,133 | 5,605,159 | 2,634,386 | ||||||||||||||||||||
Non-controlling interest in subsidiaries | 28,122 | 25,328 | 29,630 | ||||||||||||||||||||
Total equity | 5,658,255 | 5,630,487 | 2,664,016 | ||||||||||||||||||||
Total liabilities and equity | $ | 49,716,116 | $ | 46,985,426 | $ | 24,483,822 | |||||||||||||||||
Net interest spread (FTE) | 3.31% | 3.70% | 4.39% | ||||||||||||||||||||
Net interest income(FTE) and net interest margin(FTE) | $ | 381,391 | 3.35% | $ | 404,464 | 3.76% | $ | 255,394 | 4.49% | ||||||||||||||
Reconciliation to Reported Net Interest Income | |||||||||||||||||||||||
Net interest income (FTE) | $381,391 | $404,464 | $255,394 | ||||||||||||||||||||
Adjustments for taxable equivalent interest(1)(3) | |||||||||||||||||||||||
Loans and leases | (1,966 | ) | (1,829 | ) | (1,015 | ) | |||||||||||||||||
Tax-exempt investment securities | (1,066 | ) | (1,154 | ) | (322 | ) | |||||||||||||||||
Total FTE adjustments | (3,032 | ) | (2,983 | ) | (1,337 | ) | |||||||||||||||||
Net interest income (GAAP) | $378,359 | $401,481 | $254,057 | ||||||||||||||||||||
Net interest margin (GAAP) | 3.33 | % | 3.73 | % | 4.46 | % | |||||||||||||||||
(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 Average Balance Sheets, Yields and Rates (Unaudited) | |||||||||||||||||||
Six Months Ended June 30, | |||||||||||||||||||
2020 | 2019 | ||||||||||||||||||
Average | Yields & | Average | Yields & | ||||||||||||||||
(Dollars in thousands) | Balance | Interest(1) | Rates(1)(2) | Balance | Interest(1) | Rates(1)(2) | |||||||||||||
ASSETS: | |||||||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank stocks | $ | 428,103 | $ | 7,528 | 3.54% | $ | 108,646 | $ | 2,054 | 3.81% | |||||||||
Investment securities held-to-maturity | 134,166 | 631 | 0.94 | 146,922 | 1,459 | 1.99 | |||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||
Taxable | 5,811,384 | 72,794 | 2.51 | 2,418,222 | 37,248 | 3.08 | |||||||||||||
Tax-exempt(3) | 758,606 | 10,724 | 2.83 | 368,951 | 4,927 | 2.67 | |||||||||||||
Loans and leases held-for-sale | 247,364 | 4,883 | 3.95 | 47,980 | 1,424 | 5.97 | |||||||||||||
Loans and leases(3)(4) | |||||||||||||||||||
Commercial and industrial | 12,270,514 | 301,378 | 4.90 | 6,589,631 | 216,395 | 6.59 | |||||||||||||
Commercial real estate | 9,474,832 | 213,116 | 4.45 | 2,994,221 | 76,941 | 5.11 | |||||||||||||
Lease financing | 2,697,307 | 67,959 | 5.04 | 2,546,364 | 65,283 | 5.13 | |||||||||||||
Residential mortgage | 6,219,753 | 123,402 | 3.97 | 2,341,827 | 58,123 | 4.99 | |||||||||||||
Consumer installment | 1,488,429 | 37,445 | 5.06 | 1,718,987 | 47,762 | 5.60 | |||||||||||||
Home equity | 3,511,693 | 96,417 | 5.52 | 3,022,449 | 104,040 | 6.94 | |||||||||||||
Total loans and leases(3)(4) | 35,662,528 | 839,717 | 4.70 | 19,213,479 | 568,544 | 5.94 | |||||||||||||
Interest-bearing deposits with banks and other | 1,063,319 | 3,500 | 0.66 | 270,867 | 5,078 | 3.75 | |||||||||||||
Total interest-earning assets | 44,105,470 | 939,777 | 4.25 | 22,575,067 | 620,734 | 5.52 | |||||||||||||
Other assets | 4,245,301 | 1,721,355 | |||||||||||||||||
Total assets | $ | 48,350,771 | $ | 24,296,422 | |||||||||||||||
LIABILITIES AND EQUITY: | |||||||||||||||||||
Noninterest-bearing deposits | $ | 8,880,310 | $ | 3,950,447 | |||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||
Checking | 6,319,799 | 8,159 | 0.26 | 2,468,852 | 827 | 0.07 | |||||||||||||
Savings | 8,836,000 | 22,599 | 0.51 | 6,353,800 | 22,984 | 0.73 | |||||||||||||
Money market | 5,086,397 | 23,637 | 0.93 | 1,460,427 | 9,041 | 1.25 | |||||||||||||
Certificates of deposit | 7,410,567 | 59,809 | 1.62 | 4,574,710 | 45,402 | 2.00 | |||||||||||||
Total interest-bearing deposits | 27,652,763 | 114,204 | 0.83 | 14,857,789 | 78,254 | 1.06 | |||||||||||||
Total deposits | 36,533,073 | 114,204 | 0.63 | 18,808,236 | 78,254 | 0.84 | |||||||||||||
Borrowings: | |||||||||||||||||||
Short-term borrowings | 2,852,876 | 14,667 | 1.02 | 307,347 | 4,088 | 2.65 | |||||||||||||
Long-term borrowings | 1,840,299 | 25,051 | 2.71 | 1,579,613 | 26,847 | 3.39 | |||||||||||||
Total borrowings | 4,693,175 | 39,718 | 1.68 | 1,886,960 | 30,935 | 3.27 | |||||||||||||
Total interest-bearing liabilities | 32,345,938 | 153,922 | 0.95 | 16,744,749 | 109,189 | 1.31 | |||||||||||||
Total deposits and borrowings | 41,226,248 | 153,922 | 0.75 | 20,695,196 | 109,189 | 1.06 | |||||||||||||
Accrued expenses and other liabilities | 1,480,152 | 979,359 | |||||||||||||||||
Total liabilities | 42,706,400 | 21,674,555 | |||||||||||||||||
Total TCF Financial Corporation shareholders' equity | 5,617,646 | 2,594,778 | |||||||||||||||||
Non-controlling interest in subsidiaries | 26,725 | 27,089 | |||||||||||||||||
Total equity | 5,644,371 | 2,621,867 | |||||||||||||||||
Total liabilities and equity | $ | 48,350,771 | $ | 24,296,422 | |||||||||||||||
Net interest spread (FTE) | 3.50% | 4.46% | |||||||||||||||||
Net interest income (FTE) and net interest margin (FTE) | $ | 785,855 | 3.55% | $ | 511,545 | 4.55% | |||||||||||||
Reconciliation to Reported Net Interest Income | |||||||||||||||||||
Net interest income (FTE) | $ | 785,855 | $ | 511,545 | |||||||||||||||
Adjustments for taxable equivalent interest(1)(3) | |||||||||||||||||||
Loans | (3,795 | ) | (2,024 | ) | |||||||||||||||
Tax-exempt investment securities | (2,220 | ) | (1,035 | ) | |||||||||||||||
Total FTE adjustments | (6,015 | ) | (3,059 | ) | |||||||||||||||
Net interest income (GAAP) | $ | 779,840 | $ | 508,486 | |||||||||||||||
Net interest margin (GAAP) | 3.52 | % | 4.52 | % | |||||||||||||||
(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 | ||||||||||||||||||||||||||||||||
Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, 2020 | Jun. 30, 2019 | |||||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2020 | 2019 | 2019 | 2019 | $ | % | $ | % | ||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank stocks | $ | 401,532 | $ | 454,675 | $ | 388,640 | $ | 230,767 | $ | 112,118 | $ | (53,143 | ) | (11.7 | )% | $ | 289,414 | N.M. | |||||||||||||||
Investment securities held-to-maturity | 132,054 | 136,277 | 140,434 | 143,078 | 146,296 | (4,223 | ) | (3.1 | ) | (14,242 | ) | (9.7 | )% | ||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||||||||||||
Taxable | 5,730,762 | 5,892,006 | 4,960,520 | 4,232,878 | 2,711,984 | (161,244 | ) | (2.7 | ) | 3,018,778 | 111.3 | ||||||||||||||||||||||
Tax-exempt | 743,744 | 773,468 | 778,994 | 643,576 | 222,534 | (29,724 | ) | (3.8 | ) | 521,210 | N.M. | ||||||||||||||||||||||
Loans and leases held-for-sale | 356,671 | 138,058 | 1,121,326 | 118,482 | 40,835 | 218,613 | 158.3 | 315,836 | N.M. | ||||||||||||||||||||||||
Loans and leases(1) : | |||||||||||||||||||||||||||||||||
Commercial and industrial | 12,713,714 | 11,827,315 | 10,955,937 | 9,290,978 | 6,683,060 | 886,399 | 7.5 | 6,030,654 | 90.2 | ||||||||||||||||||||||||
Commercial real estate | 9,658,124 | 9,291,540 | 9,057,834 | 6,964,643 | 3,069,969 | 366,584 | 3.9 | 6,588,155 | N.M. | ||||||||||||||||||||||||
Lease financing | 2,712,291 | 2,682,323 | 2,616,360 | 2,570,567 | 2,565,175 | 29,968 | 1.1 | 147,116 | 5.7 | ||||||||||||||||||||||||
Residential mortgage | 6,326,227 | 6,113,279 | 6,023,647 | 4,853,627 | 2,337,818 | 212,948 | 3.5 | 3,988,409 | 170.6 | ||||||||||||||||||||||||
Consumer installment | 1,459,446 | 1,517,412 | 1,546,952 | 2,389,830 | 1,586,633 | (57,966 | ) | (3.8 | ) | (127,187 | ) | (8.0 | ) | ||||||||||||||||||||
Home equity | 3,509,107 | 3,514,278 | 3,604,153 | 3,433,830 | 2,997,050 | (5,171 | ) | (0.1 | ) | 512,057 | 17.1 | ||||||||||||||||||||||
Total loans and leases(1) | 36,378,909 | 34,946,147 | 33,804,883 | 29,503,475 | 19,239,705 | 1,432,762 | 4.1 | 17,139,204 | 89.1 | ||||||||||||||||||||||||
Interest-bearing deposits with banks and other | 1,587,665 | 538,971 | 656,555 | 933,014 | 280,075 | 1,048,694 | 194.6 | 1,307,590 | N.M. | ||||||||||||||||||||||||
Total interest-earning assets | 45,331,337 | 42,879,602 | 41,851,352 | 35,805,270 | 22,753,547 | 2,451,735 | 5.7 | 22,577,790 | 99.2 | ||||||||||||||||||||||||
Other assets | 4,384,779 | 4,105,824 | 4,268,162 | 3,289,096 | 1,730,275 | 278,955 | 6.8 | 2,654,504 | 153.4 | ||||||||||||||||||||||||
Total assets | $ | 49,716,116 | $ | 46,985,426 | $ | 46,119,514 | $ | 39,094,366 | $ | 24,483,822 | $ | 2,730,690 | 5.8 | $ | 25,232,294 | 103.1 | |||||||||||||||||
LIABILITIES AND EQUITY: | |||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | 9,830,687 | $ | 7,929,933 | $ | 7,968,769 | $ | 6,564,195 | $ | 3,980,811 | $ | 1,900,754 | 24.0 | $ | 5,849,876 | 147.0 | % | ||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||||||
Checking | 6,649,288 | 5,990,309 | 5,891,566 | 4,805,843 | 2,479,814 | 658,979 | 11.0 | 4,169,474 | 168.1 | ||||||||||||||||||||||||
Savings | 9,082,184 | 8,589,815 | 8,404,460 | 7,676,165 | 6,452,510 | 492,369 | 5.7 | 2,629,674 | 40.8 | ||||||||||||||||||||||||
Money market | 5,380,547 | 4,792,248 | 4,463,476 | 3,490,922 | 1,430,556 | 588,299 | 12.3 | 3,949,991 | N.M. | ||||||||||||||||||||||||
Certificates of deposit | 7,491,502 | 7,329,632 | 7,825,573 | 7,320,720 | 4,527,822 | 161,870 | 2.2 | 2,963,680 | 65.5 | ||||||||||||||||||||||||
Total interest-bearing deposits | 28,603,521 | 26,702,004 | 26,585,075 | 23,293,650 | 14,890,702 | 1,901,517 | 7.1 | 13,712,819 | 92.1 | ||||||||||||||||||||||||
Total deposits | 38,434,208 | 34,631,937 | 34,553,844 | 29,857,845 | 18,871,513 | 3,802,271 | 11.0 | 19,562,695 | 103.7 | ||||||||||||||||||||||||
Borrowings: | |||||||||||||||||||||||||||||||||
Short-term borrowings | 3,016,490 | 2,689,262 | 2,585,682 | 1,884,228 | 321,043 | 327,228 | 12.2 | 2,695,447 | N.M. | ||||||||||||||||||||||||
Long-term borrowings | 1,072,394 | 2,608,204 | 1,739,852 | 1,472,150 | 1,657,527 | (1,535,810 | ) | (58.9 | ) | (585,133 | ) | (35.3 | ) | ||||||||||||||||||||
Total borrowings | 4,088,884 | 5,297,466 | 4,325,534 | 3,356,378 | 1,978,570 | (1,208,582 | ) | (22.8 | ) | 2,110,314 | 106.7 | ||||||||||||||||||||||
Total interest-bearing liabilities | 32,692,405 | 31,999,470 | 30,910,609 | 26,650,028 | 16,869,272 | 692,935 | 2.2 | 15,823,133 | 93.8 | ||||||||||||||||||||||||
Total deposits and borrowings | 42,523,092 | 39,929,403 | 38,879,378 | 33,214,223 | 20,850,083 | 2,593,689 | 6.5 | 21,673,009 | 103.9 | ||||||||||||||||||||||||
Accrued expenses and other liabilities | 1,534,769 | 1,425,536 | 1,549,017 | 1,197,014 | 969,723 | 109,233 | 7.7 | 565,046 | 58.3 | ||||||||||||||||||||||||
Total liabilities | 44,057,861 | 41,354,939 | 40,428,395 | 34,411,237 | 21,819,806 | 2,702,922 | 6.5 | 22,238,055 | 101.9 | ||||||||||||||||||||||||
Total TCF Financial Corporation shareholders' equity | 5,630,133 | 5,605,159 | 5,667,436 | 4,657,613 | 2,634,386 | 24,974 | 0.4 | 2,995,747 | 113.7 | ||||||||||||||||||||||||
Non-controlling interest in subsidiaries | 28,122 | 25,328 | 23,683 | 25,516 | 29,630 | 2,794 | 11.0 | (1,508 | ) | (5.1 | ) | ||||||||||||||||||||||
Total equity | 5,658,255 | 5,630,487 | 5,691,119 | 4,683,129 | 2,664,016 | 27,768 | 0.5 | 2,994,239 | 112.4 | ||||||||||||||||||||||||
Total liabilities and equity | $ | 49,716,116 | $ | 46,985,426 | $ | 46,119,514 | $ | 39,094,366 | $ | 24,483,822 | $ | 2,730,690 | 5.8 | $ | 25,232,294 | 103.1 | |||||||||||||||||
(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 | ||||||||||||||||||
Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Jun. 30, | |||||||||||||
2020 | 2020 | 2019 | 2019 | 2019 | 2020 | 2019 | |||||||||||||
ASSETS: | |||||||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank stocks | 4.38 | % | 2.79 | % | 3.24 | % | 1.39 | % | 3.91 | % | 159 | bps | 47 | bps | |||||
Investment securities held-to-maturity | 0.21 | 1.64 | 2.53 | 1.68 | 2.53 | (143) | (232) | ||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||
Taxable | 2.26 | 2.74 | 2.85 | 2.88 | 3.11 | (48) | (85) | ||||||||||||
Tax-exempt(3) | 2.81 | 2.85 | 2.84 | 2.66 | 2.75 | (4) | 6 | ||||||||||||
Loans and leases held-for-sale | 3.73 | 4.53 | 5.58 | 4.74 | 5.88 | (80) | (215) | ||||||||||||
Loans and leases(3) | |||||||||||||||||||
Commercial and industrial | 4.41 | 5.42 | 5.63 | 6.25 | 6.56 | (101) | (215) | ||||||||||||
Commercial real estate | 3.91 | 5.01 | 5.38 | 5.45 | 5.05 | (110) | (114) | ||||||||||||
Lease financing | 4.99 | 5.09 | 5.11 | 5.11 | 5.13 | (10) | (14) | ||||||||||||
Residential mortgage | 3.93 | 4.02 | 4.05 | 4.23 | 4.91 | (9) | (98) | ||||||||||||
Consumer installment | 4.88 | 5.23 | 4.97 | 5.73 | 5.63 | (35) | (75) | ||||||||||||
Home equity | 5.19 | 5.85 | 5.93 | 6.49 | 6.90 | (66) | (171) | ||||||||||||
Total loans and leases(3) | 4.33 | 5.08 | 5.24 | 5.62 | 5.91 | (75) | (158) | ||||||||||||
Interest-bearing deposits with banks and other | 0.30 | 1.72 | 2.07 | 2.44 | 3.64 | (142) | (334) | ||||||||||||
Total interest-earning assets | 3.88 | 4.64 | 4.85 | 5.11 | 5.48 | (76) | (160) | ||||||||||||
LIABILITIES: | |||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||
Checking | 0.14 | 0.39 | 0.51 | 0.46 | 0.07 | (25) | 7 | ||||||||||||
Savings | 0.40 | 0.64 | 0.71 | 0.73 | 0.77 | (24) | (37) | ||||||||||||
Money market | 0.66 | 1.25 | 1.38 | 1.48 | 1.29 | (59) | (63) | ||||||||||||
Certificates of deposit | 1.44 | 1.81 | 1.97 | 2.07 | 2.06 | (37) | (62) | ||||||||||||
Total interest-bearing deposits | 0.66 | 1.02 | 1.15 | 1.21 | 1.09 | (36) | (43) | ||||||||||||
Total deposits | 0.49 | 0.78 | 0.88 | 0.94 | 0.86 | (29) | (37) | ||||||||||||
Borrowings: | |||||||||||||||||||
Short-term borrowings | 0.54 | 1.56 | 1.73 | 1.11 | 2.63 | (102) | (209) | ||||||||||||
Long-term borrowings | 3.40 | 2.42 | 2.87 | 3.17 | 3.34 | 98 | 6 | ||||||||||||
Total borrowings | 1.29 | 1.98 | 2.19 | 2.01 | 3.23 | (69) | (194) | ||||||||||||
Total interest-bearing liabilities | 0.74 | 1.18 | 1.29 | 1.31 | 1.34 | (44) | (60) | ||||||||||||
Total deposits and borrowings | 0.57 | 0.94 | 1.03 | 1.05 | 1.09 | (37) | (52) | ||||||||||||
Net interest margin (FTE) | 3.35 | 3.76 | 3.89 | 4.14 | 4.49 | (41) | (114) | ||||||||||||
(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 | ||||||||||||||||||||||||||
Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, 2020 | Jun. 30, 2019 | |||||||||||||||||||||
(Dollars in thousands) | 2020 | 2020 | 2019 | 2019 | 2019 | $ | % | $ | |||||||||||||||||||
Commercial and industrial | $ | 12,200,721 | $ | 12,326,943 | $ | 11,439,602 | $ | 10,913,343 | $ | 6,666,106 | $ | (126,222 | ) | (1.0)% | $ | 5,534,615 | |||||||||||
Commercial real estate | 9,628,344 | 9,486,904 | 9,136,870 | 8,773,970 | 3,168,774 | 141,440 | 1.5 | 6,459,570 | |||||||||||||||||||
Lease financing | 2,707,402 | 2,708,998 | 2,699,869 | 2,594,373 | 2,582,613 | (1,596 | ) | (0.1) | 124,789 | ||||||||||||||||||
Total commercial loan and lease portfolio | 24,536,467 | 24,522,845 | 23,276,341 | 22,281,686 | 12,417,493 | 13,622 | 0.1 | 12,118,974 | |||||||||||||||||||
Residential mortgage | 6,123,118 | 6,435,314 | 6,179,805 | 6,057,404 | 2,368,411 | (312,196 | ) | (4.9) | 3,754,707 | ||||||||||||||||||
Home equity | 3,445,584 | 3,453,502 | 3,498,907 | 3,609,410 | 2,924,753 | (7,918 | ) | (0.2) | 520,831 | ||||||||||||||||||
Consumer installment | 1,430,655 | 1,509,953 | 1,542,411 | 1,562,252 | 1,474,480 | (79,298 | ) | (5.3) | (43,825 | ) | |||||||||||||||||
Total consumer loan portfolio | 10,999,357 | 11,398,769 | 11,221,123 | 11,229,066 | 6,767,644 | (399,412 | ) | (3.5) | 4,231,713 | ||||||||||||||||||
Total | $ | 35,535,824 | $ | 35,921,614 | $ | 34,497,464 | $ | 33,510,752 | $ | 19,185,137 | $ | (385,790 | ) | (1.1) | $ | 16,350,687 | |||||||||||
Composition of Deposits (Unaudited) | |||||||||||||||||||||||||||
Quarter Ended | Change From | ||||||||||||||||||||||||||
Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, 2020 | Jun. 30, 2019 | |||||||||||||||||||||
(Dollars in thousands) | 2020 | 2020 | 2019 | 2019 | 2019 | $ | % | $ | |||||||||||||||||||
Noninterest-bearing deposits | $ | 10,480,245 | $ | 8,237,916 | $ | 7,970,590 | $ | 7,979,900 | $ | 4,062,912 | $ | 2,242,329 | 27.2% | $ | 6,417,333 | ||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||
Savings | 9,310,362 | 8,703,864 | 8,506,058 | 8,347,541 | 6,503,102 | 606,498 | 7.0 | 2,807,260 | |||||||||||||||||||
Certificates of deposit | 7,142,996 | 7,463,192 | 7,455,556 | 8,385,972 | 4,605,327 | (320,196 | ) | (4.3) | 2,537,669 | ||||||||||||||||||
Checking | 6,693,092 | 6,289,046 | 5,966,178 | 6,266,740 | 2,498,042 | 404,046 | 6.4 | 4,195,050 | |||||||||||||||||||
Money market | 5,584,177 | 5,105,285 | 4,570,081 | 4,305,921 | 1,443,004 | 478,892 | 9.4 | 4,141,173 | |||||||||||||||||||
Total interest-bearing deposits | 28,730,627 | 27,561,387 | 26,497,873 | 27,306,174 | 15,049,475 | 1,169,240 | 4.2 | 13,681,152 | |||||||||||||||||||
Total deposits | $ | 39,210,872 | $ | 35,799,303 | $ | 34,468,463 | $ | 35,286,074 | $ | 19,112,387 | $ | 3,411,569 | 9.5 | $ | 20,098,485 | ||||||||||||
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
Summary of Credit Quality Data | |||||||||||||||||||||||||||||||||
Allowance for Credit Losses (Unaudited) | |||||||||||||||||||||||||||||||||
Jun. 30, | Mar. 31, | Jan. 1, | Dec. 31, | Sep. 30, | Jun. 30, | ||||||||||||||||||||||||||||
2020 | 2020 | 2020 | 2019 | 2019 | 2019 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Balance | % of Loan and Lease Portfolio | Balance | % of Loan and Lease Portfolio | Adjusted for adoption of CECL | Balance | % of Loan and Lease Portfolio | Balance | % of Loan and Lease Portfolio | Balance | % of Loan and Lease Portfolio | ||||||||||||||||||||||
Allowance for loan and lease losses | |||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 122,024 | 1.00% | $ | 117,507 | 0.95% | $ | 93,884 | $ | 42,430 | 0.38% | $ | 39,974 | 0.37% | $ | 38,605 | 0.59% | ||||||||||||||||
Commercial real estate | 162,364 | 1.69 | 86,209 | 0.91 | 67,620 | 27,308 | 0.29 | 24,090 | 0.27 | 22,747 | 0.70 | ||||||||||||||||||||||
Lease financing | 19,041 | 0.70 | 27,610 | 1.02 | 21,631 | 14,742 | 0.55 | 14,367 | 0.55 | 14,440 | 0.56 | ||||||||||||||||||||||
Residential mortgage | 79,479 | 1.30 | 97,185 | 1.51 | 72,939 | 8,099 | 0.13 | 19,816 | 0.33 | 21,102 | 0.89 | ||||||||||||||||||||||
Consumer installment | 21,382 | 1.49 | 20,178 | 1.34 | 15,967 | 2,678 | 0.17 | 1,859 | 0.12 | 26,731 | 1.81 | ||||||||||||||||||||||
Home equity | 56,824 | 1.65 | 57,694 | 1.67 | 47,003 | 17,795 | 0.51 | 21,112 | 0.58 | 22,878 | 0.78 | ||||||||||||||||||||||
Total allowance for loan and lease losses | $ | 461,114 | 1.30% | $ | 406,383 | 1.13% | $ | 319,044 | $ | 113,052 | 0.33% | $ | 121,218 | 0.36% | $ | 146,503 | 0.76% | ||||||||||||||||
Reserve for unfunded lending commitments | 42,788 | 22,188 | 3,528 | 3,461 | 1,936 | ||||||||||||||||||||||||||||
Total allowance for credit losses | $ | 503,902 | 1.42% | $ | 428,571 | 1.19% | $ | 116,580 | 0.34% | $ | 124,679 | 0.37% | $ | 148,439 | 0.77% | ||||||||||||||||||
Changes in Allowance for Credit Losses | |||||||||||||||||||||||||||
Quarter Ended | Change From | ||||||||||||||||||||||||||
Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Jun. 30, | |||||||||||||||||||||
(Dollars in thousands) | 2020 | 2020 | 2019 | 2019 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Allowance for loan and lease losses | |||||||||||||||||||||||||||
Balance, beginning of period | $ | 406,383 | $ | 113,052 | $ | 121,218 | $ | 146,503 | $ | 147,972 | $ | 293,331 | $ | 258,411 | |||||||||||||
Impact of CECL adoption | — | 205,992 | — | — | — | (205,992 | ) | — | |||||||||||||||||||
Adjusted balance, beginning of period | 406,383 | 319,044 | 121,218 | 146,503 | 147,972 | 87,339 | 258,411 | ||||||||||||||||||||
Charge-offs | (9,958 | ) | (14,729 | ) | (16,891 | ) | (35,547 | ) | (21,066 | ) | 4,771 | 11,108 | |||||||||||||||
Recoveries | 6,563 | 9,252 | 10,654 | 6,969 | 6,984 | (2,689 | ) | (421 | ) | ||||||||||||||||||
Net (charge-offs) recoveries | (3,395 | ) | (5,477 | ) | (6,237 | ) | (28,578 | ) | (14,082 | ) | 2,082 | 10,687 | |||||||||||||||
Provision for credit losses related to loans and leases(1) | 58,126 | 92,990 | 14,403 | 27,188 | 13,569 | (34,864 | ) | 44,557 | |||||||||||||||||||
Other(2) | — | (174 | ) | (16,332 | ) | (23,895 | ) | (956 | ) | 174 | 956 | ||||||||||||||||
Balance, end of period | 461,114 | 406,383 | 113,052 | 121,218 | 146,503 | 54,731 | 314,611 | ||||||||||||||||||||
Reserve for unfunded lending commitments | |||||||||||||||||||||||||||
Balance, beginning of period | 22,188 | 3,528 | 3,461 | 1,936 | 1,941 | 18,660 | 20,247 | ||||||||||||||||||||
Impact of CECL adoption | — | 14,707 | — | — | — | (14,707 | ) | — | |||||||||||||||||||
Adjusted balance, beginning of period | 22,188 | 18,235 | 3,461 | 1,936 | 1,941 | 3,953 | 20,247 | ||||||||||||||||||||
Provision (benefit) for credit losses related to unfunded lending commitments(1) | 20,600 | 3,953 | 67 | (342 | ) | (5 | ) | 16,647 | 20,605 | ||||||||||||||||||
Addition due to merger | — | — | — | 1,867 | — | — | — | ||||||||||||||||||||
Balance, end of period | 42,788 | 22,188 | 3,528 | 3,461 | 1,936 | 20,600 | 40,852 | ||||||||||||||||||||
Total allowance for credit losses | $ | 503,902 | $ | 428,571 | $ | 116,580 | $ | 124,679 | $ | 148,439 | $ | 75,331 | $ | 355,463 | |||||||||||||
(1) | Provision for credit losses related to loans and leases and the provision for credit losses related to unfunded lending commitments are included within Provision for Credit Losses in the Consolidated Statements of Income. |
(2) | Primarily includes 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 | ||||||||||||||||||||||||||||||||||
Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | ||||||||||||||||||||||||||||||
2020 | 2020 | 2019 | 2019 | 2019 | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Balance | Rate(1) | Balance | Rate(1) | Balance | Rate(1) | Balance | Rate(1) | Balance | Rate(1) | ||||||||||||||||||||||||
Commercial and industrial | $ | 9 | — | % | $ | (4,022 | ) | 0.14 | % | $ | (5,736 | ) | 0.21 | % | $ | (17,631 | ) | 0.76 | % | $ | (5,820 | ) | 0.35 | % | ||||||||||
Commercial real estate | (644 | ) | 0.03 | 563 | (0.02 | ) | (7 | ) | — | 13 | — | 9 | — | |||||||||||||||||||||
Lease financing | (1,392 | ) | 0.21 | (878 | ) | 0.13 | (1,749 | ) | 0.27 | (2,192 | ) | 0.34 | (966 | ) | 0.15 | |||||||||||||||||||
Residential mortgage | (871 | ) | 0.06 | 355 | (0.02 | ) | 1,552 | (0.10 | ) | (189 | ) | 0.02 | (80 | ) | 0.01 | |||||||||||||||||||
Consumer installment | (162 | ) | 0.04 | (1,249 | ) | 0.33 | (2,577 | ) | 0.67 | (8,984 | ) | 1.50 | (6,990 | ) | 1.76 | |||||||||||||||||||
Home equity | (335 | ) | 0.04 | (246 | ) | 0.03 | 2,280 | (0.25 | ) | 405 | (0.05 | ) | (235 | ) | 0.03 | |||||||||||||||||||
Total net (charge-offs) recoveries | $ | (3,395 | ) | 0.04 | % | $ | (5,477 | ) | 0.06 | % | $ | (6,237 | ) | 0.07 | % | $ | (28,578 | ) | 0.39 | % | $ | (14,082 | ) | 0.29 | % | |||||||||
Over 90-Day Delinquencies as a Percentage of Portfolio(1) | |||||||||||||||||||||
Change From | |||||||||||||||||||||
Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Jun. 30, | |||||||||||||||
2020 | 2020 | 2019 | 2019 | 2019 | 2020 | 2019 | |||||||||||||||
Commercial and industrial | 0.02 | % | — | % | — | % | 0.02 | % | — | % | 2 | bps | 2 | bps | |||||||
Commercial real estate | — | 0.02 | 0.02 | 0.09 | — | (2 | ) | — | |||||||||||||
Lease financing | 0.18 | 0.11 | 0.07 | 0.09 | 0.12 | 7 | 6 | ||||||||||||||
Residential mortgage | 0.01 | 0.01 | 0.01 | 0.01 | 0.05 | — | (4 | ) | |||||||||||||
Consumer installment | — | — | 0.01 | — | 0.14 | — | (14 | ) | |||||||||||||
Home equity | — | 0.01 | — | — | — | (1 | ) | — | |||||||||||||
Subtotal | 0.02 | 0.02 | 0.01 | 0.04 | 0.03 | — | (1 | ) | |||||||||||||
Portfolios acquired with deteriorated credit quality(2) | N/A | N/A | 10.43 | 5.47 | 18.92 | N/A | N/A | ||||||||||||||
Total delinquencies | 0.02 | % | 0.02 | % | 0.09 | % | 0.09 | % | 0.04 | % | — | (2 | ) | ||||||||
(1) | Excludes nonaccrual loans and leases. |
(2) | Prior to the adoption of CECL as of January 1, 2020, purchased credit impaired loans were not classified as nonaccrual loans because they were recorded at their net realizable value based on the principal and interest expected to be collected on the loans. |
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||
Summary of Credit Quality Data (Unaudited), Continued | ||||||||||||||||||||||||||||
Nonperforming Assets | ||||||||||||||||||||||||||||
Change From | ||||||||||||||||||||||||||||
Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Jun. 30, | ||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2020 | 2019 | 2019 | 2019 | 2020 | 2019 | |||||||||||||||||||||
Nonaccrual loans and leases: | ||||||||||||||||||||||||||||
Commercial and industrial | $ | 98,184 | $ | 84,157 | $ | 53,812 | $ | 55,039 | $ | 18,483 | $ | 14,027 | $ | 79,701 | ||||||||||||||
Commercial real estate | 57,521 | 47,032 | 29,735 | 26,518 | 545 | 10,489 | 56,976 | |||||||||||||||||||||
Lease financing | 18,756 | 13,170 | 10,957 | 11,503 | 12,886 | 5,586 | 5,870 | |||||||||||||||||||||
Residential mortgage | 67,762 | 61,980 | 38,577 | 48,816 | 34,760 | 5,782 | 33,002 | |||||||||||||||||||||
Consumer installment | 1,668 | 989 | 714 | 636 | 8,633 | 679 | (6,965 | ) | ||||||||||||||||||||
Home equity | 47,560 | 43,147 | 35,863 | 39,296 | 32,686 | 4,413 | 14,874 | |||||||||||||||||||||
Total nonaccrual loans and leases(1) | 291,451 | 250,475 | 169,658 | 181,808 | 107,993 | 40,976 | 183,458 | |||||||||||||||||||||
Other real estate owned | 42,744 | 38,914 | 34,256 | 27,638 | 11,964 | 3,830 | 30,780 | |||||||||||||||||||||
Total nonperforming assets | $ | 334,195 | $ | 289,389 | $ | 203,914 | $ | 209,446 | $ | 119,957 | $ | 44,806 | $ | 214,238 | ||||||||||||||
Nonaccrual loans and leases as a percentage of total loans and leases(1) | 0.82 | % | 0.70 | % | 0.49 | % | 0.54 | % | 0.56 | % | 12 | bps | 26 | bps | ||||||||||||||
Allowance for loan and lease losses as a percentage of nonaccrual loans and leases(1) | 158.21 | 162.24 | 66.64 | 66.67 | 135.66 | (403 | ) | 2,255 | ||||||||||||||||||||
Allowance for credit losses as a percentage of nonaccrual loans and leases(1) | 172.89 | 171.10 | 68.71 | 68.58 | 137.45 | 179 | 3,544 | |||||||||||||||||||||
Nonperforming assets as a percentage of total loans and leases and other real estate owned(1) | 0.94 | 0.80 | 0.59 | 0.62 | 0.62 | 14 | 32 | |||||||||||||||||||||
(1) | Prior to the adoption of CECL as of January 1, 2020, purchased credit impaired loans were not classified as nonaccrual loans because they were recorded at their net realizable value based on the principal and interest expected to be collected on the loans. At January 1, 2020, $73.4 million of previous purchased credit impaired loans were reclassified to nonaccrual loans as a result of the adoption of CECL. |
Consolidated Capital Information (Unaudited) | |||||||||||||||||||||||||
Change From | |||||||||||||||||||||||||
(Dollars in thousands, except per share data) | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Jun. 30, | ||||||||||||||||||
2020 | 2020 | 2019 | 2019 | 2019 | 2020 | 2019 | |||||||||||||||||||
Dividends declared per common share | $ | 0.35 | $ | 0.35 | $ | 0.35 | $ | 0.35 | $ | 0.30 | 0.0 | % | 16.7 | % | |||||||||||
Book value per common share | 35.91 | 35.85 | 36.20 | 35.82 | 30.43 | 0.2 | 18.0 | ||||||||||||||||||
Tangible book value per common share(1) | 26.25 | 26.16 | 26.60 | 26.18 | 28.33 | 0.3 | (7.3) | ||||||||||||||||||
Common equity to assets | 10.92 | % | 11.23 | % | 11.87 | % | 12.04 | % | 10.22 | % | (31) | bps | 70 | bps | |||||||||||
Tangible common equity to tangible assets(1) | 8.22 | 8.45 | 9.01 | 9.09 | 9.58 | (23) | (136) | ||||||||||||||||||
Regulatory Capital:(2) | |||||||||||||||||||||||||
Common equity Tier 1 capital | $ | 4,028,681 | $ | 4,026,304 | $ | 4,050,826 | $ | 4,009,214 | $ | 2,305,706 | 0.1 | % | 74.7 | % | |||||||||||
Tier 1 capital | 4,221,283 | 4,225,755 | 4,236,648 | 4,197,706 | 2,495,178 | (0.1) | 69.2 | ||||||||||||||||||
Total capital | 4,907,760 | 4,744,899 | 4,681,630 | 4,652,708 | 2,811,347 | 3.4 | 74.6 | ||||||||||||||||||
Common equity Tier 1 capital ratio | 11.09 | % | 10.44 | % | 10.99 | % | 10.88 | % | 10.99 | % | 65 | bps | 10 | bps | |||||||||||
Tier 1 risk-based capital ratio | 11.62 | 10.96 | 11.49 | 11.40 | 11.90 | 66 | (28) | ||||||||||||||||||
Total risk-based capital ratio | 13.51 | 12.31 | 12.70 | 12.63 | 13.40 | 120 | 11 | ||||||||||||||||||
Tier 1 leverage ratio | 8.75 | 9.27 | 9.49 | 11.16 | 10.26 | (52) | (151) | ||||||||||||||||||
(1) | See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables. |
(2) | June 30, 2020 amounts are preliminary pending completion and filing of the Corporation's regulatory reports. June 30, 2020 and March 31, 2020 regulatory capital ratios 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 | ||||||||||||||||||||
Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | ||||||||||||||||
(Dollars in thousands, except per share data) | 2020 | 2020 | 2019 | 2019 | 2019 | |||||||||||||||
Net income available to common shareholders | $ | 21,270 | $ | 49,406 | $ | 109,905 | $ | 19,654 | $ | 87,933 | ||||||||||
Earnings allocated to participating securities | — | — | — | — | (17 | ) | ||||||||||||||
Earnings allocated to common stock | (a) | 21,270 | 49,406 | 109,905 | 19,654 | 87,916 | ||||||||||||||
Merger-related expenses | 81,619 | 36,728 | 47,025 | 111,259 | 4,226 | |||||||||||||||
Notable items: | ||||||||||||||||||||
Sale of legacy TCF auto finance portfolio and related expenses(1) | 901 | 3,063 | 12,864 | 19,264 | — | |||||||||||||||
Termination of interest rate swaps(2) | — | — | — | 17,302 | — | |||||||||||||||
Gain on sale of certain investment securities(3) | — | — | — | (5,869 | ) | — | ||||||||||||||
Gains on sales of branches, write-down of company-owned vacant land parcels and branch exit costs, net(4) | (14,166 | ) | — | 3,494 | 5,890 | — | ||||||||||||||
Pension fair valuation adjustment(5) | — | — | 6,341 | — | — | |||||||||||||||
Loan servicing rights (recovery) impairment(2) | 8,858 | 8,236 | (638 | ) | 4,520 | — | ||||||||||||||
Total notable items | (4,407 | ) | 11,299 | 22,061 | 41,107 | — | ||||||||||||||
Related income tax expense, net of benefits(6) | (16,114 | ) | (10,071 | ) | (19,904 | ) | (46,213 | ) | (1,003 | ) | ||||||||||
Total adjustments, net of tax | 61,098 | 37,956 | 49,182 | 106,153 | 3,223 | |||||||||||||||
Adjusted earnings allocated to common stock | (b) | $ | 82,368 | $ | 87,362 | $ | 159,087 | $ | 125,807 | $ | 91,139 | |||||||||
Weighted-average common shares outstanding used in diluted earnings per common share calculation(7) | (c) | 151,660,139 | 152,114,017 | 152,658,766 | 128,754,588 | 82,298,920 | ||||||||||||||
Diluted earnings per common share | (a)/(c) | $ | 0.14 | $ | 0.32 | $ | 0.72 | $ | 0.15 | $ | 1.07 | |||||||||
Adjusted diluted earnings per common share | (b)/(c) | 0.54 | 0.57 | 1.04 | 0.98 | 1.11 | ||||||||||||||
Net income attributable to TCF | $ | 23,764 | $ | 51,899 | $ | 112,399 | $ | 22,148 | $ | 90,427 | ||||||||||
Total adjustments, net of tax | 61,098 | 37,956 | 49,182 | 106,153 | 3,223 | |||||||||||||||
Adjusted net income attributable to TCF | $ | 84,862 | $ | 89,855 | $ | 161,581 | $ | 128,301 | $ | 93,650 | ||||||||||
(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). Fourth quarter 2019 amount included within net gains (losses) on sales of loans and leases ($8.2 million), other noninterest expense ($2.2 million), occupancy and equipment ($1.5 million) and compensation and employee benefits ($0.9 million). Third quarter 2019 amount included within net gains (losses) on sales of loans and leases. |
(2) | Included within other noninterest income. |
(3) | Included within Net gains on investment securities. |
(4) | Second quarter 2020 amount included within other noninterest income ($14.7 million net gain) and other noninterest expense ($0.6 million). Fourth quarter of 2019 and third quarter of 2019 included within other noninterest expense. |
(5) | Included within other noninterest expense. |
(6) | Included within Income tax expense (benefit). |
(7) | Assumes conversion of common shares, as applicable. |
Computation of adjusted net interest income and margin: | |||||||||||||||||||
Quarter Ended | |||||||||||||||||||
Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | |||||||||||||||
(Dollars in thousands) | 2020 | 2020 | 2019 | 2019 | 2019 | ||||||||||||||
Net Interest Income | $ | 378,359 | $ | 401,481 | $ | 408,753 | $ | 371,793 | $ | 254,057 | |||||||||
Purchase accounting accretion and amortization | (18,209 | ) | (25,258 | ) | (30,523 | ) | (28,411 | ) | — | ||||||||||
Adjusted net interest income, excluding purchase accounting accretion and amortization | $ | 360,150 | $ | 376,223 | $ | 378,230 | $ | 343,382 | $ | 254,057 | |||||||||
Net fees recognized on PPP loans | (7,805 | ) | — | — | — | — | |||||||||||||
Interest recognition on PPP loans(1) | (1,759 | ) | — | — | — | — | |||||||||||||
Total PPP loans impact | (9,564 | ) | — | — | — | — | |||||||||||||
Adjusted net interest income, excluding purchase accounting accretion and amortization and PPP impact | $ | 350,586 | $ | 376,223 | $ | 378,230 | $ | 343,382 | $ | 254,057 | |||||||||
Net interest margin (FTE) | 3.35 | % | 3.76 | % | 3.89 | % | 4.14 | % | 4.49 | % | |||||||||
Purchase accounting accretion and amortization impact | (0.16 | ) | (0.23 | ) | (0.29 | ) | (0.31 | ) | — | ||||||||||
Adjusted net interest margin, excluding purchase accounting accretion and amortization (FTE) | 3.19 | 3.53 | 3.60 | 3.83 | 4.49 | ||||||||||||||
PPP loans impact(2) | 0.01 | — | — | — | — | ||||||||||||||
Adjusted net interest margin, excluding purchase accounting accretion and amortization and PPP loans impact (FTE) | 3.20 | % | 3.53 | % | 3.60 | % | 3.83 | % | 4.49 | % | |||||||||
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited), Continued | ||||||||||||||||||||
Computation of adjusted return on average assets, common equity, average tangible common equity: | ||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||
Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | ||||||||||||||||
(Dollars in thousands) | 2020 | 2020 | 2019 | 2019 | 2019 | |||||||||||||||
Adjusted net income after tax expense: | ||||||||||||||||||||
Income after tax expense | (a) | $ | 26,233 | $ | 53,816 | $ | 114,456 | $ | 24,978 | $ | 94,043 | |||||||||
Merger-related expenses | 81,619 | 36,728 | 47,025 | 111,259 | 4,226 | |||||||||||||||
Notable items | (4,407 | ) | 11,299 | 22,061 | 41,107 | — | ||||||||||||||
Related income tax expense, net of tax benefits | (16,114 | ) | (10,071 | ) | (19,904 | ) | (46,213 | ) | (1,003 | ) | ||||||||||
Adjusted net income after tax expense for ROAA calculation | (b) | 87,331 | 91,772 | 163,638 | 131,131 | 97,266 | ||||||||||||||
Net income available to common shareholders | (c) | 21,270 | 49,406 | 109,905 | 19,654 | 87,933 | ||||||||||||||
Other intangibles amortization | 5,516 | 5,480 | 5,505 | 4,544 | 798 | |||||||||||||||
Related income tax expense | (1,151 | ) | (1,149 | ) | (1,284 | ) | (1,085 | ) | (189 | ) | ||||||||||
Net income available to common shareholders used in ROATCE calculation | (d) | 25,635 | 53,737 | 114,126 | 23,113 | 88,542 | ||||||||||||||
Adjusted net income available to common shareholders: | ||||||||||||||||||||
Net income available to common shareholders | 21,270 | 49,406 | 109,905 | 19,654 | 87,933 | |||||||||||||||
Notable items | (4,407 | ) | 11,299 | 22,061 | 41,107 | — | ||||||||||||||
Merger-related expenses | 81,619 | 36,728 | 47,025 | 111,259 | 4,226 | |||||||||||||||
Related income tax expense, net of tax benefits | (16,114 | ) | (10,071 | ) | (19,904 | ) | (46,213 | ) | (1,003 | ) | ||||||||||
Net income available to common shareholders used in adjusted ROACE calculation | (e) | 82,368 | 87,362 | 159,087 | 125,807 | 91,156 | ||||||||||||||
Other intangibles amortization | 5,516 | 5,480 | 5,505 | 4,544 | 798 | |||||||||||||||
Related income tax expense | (1,151 | ) | (1,149 | ) | (1,284 | ) | (1,085 | ) | (189 | ) | ||||||||||
Net income available to common shareholders used in adjusted ROATCE calculation | (f) | 86,733 | 91,693 | 163,308 | 129,266 | 91,765 | ||||||||||||||
Average balances: | ||||||||||||||||||||
Average assets | (g) | 49,716,116 | 46,985,426 | 46,119,514 | 39,094,366 | 24,483,822 | ||||||||||||||
Total equity | 5,658,255 | 5,630,487 | 5,691,119 | 4,683,129 | 2,664,016 | |||||||||||||||
Non-controlling interest in subsidiaries | (28,122 | ) | (25,328 | ) | (23,683 | ) | (25,516 | ) | (29,630 | ) | ||||||||||
Total TCF Financial Corporation shareholders' equity | 5,630,133 | 5,605,159 | 5,667,436 | 4,657,613 | 2,634,386 | |||||||||||||||
Preferred stock | (169,302 | ) | (169,302 | ) | (169,302 | ) | (169,302 | ) | (169,302 | ) | ||||||||||
Average total common shareholders' equity used in ROACE calculation | (h) | 5,460,831 | 5,435,857 | 5,498,134 | 4,488,311 | 2,465,084 | ||||||||||||||
Goodwill, net | (1,313,046 | ) | (1,301,080 | ) | (1,266,166 | ) | (890,155 | ) | (154,757 | ) | ||||||||||
Other intangibles, net | (160,841 | ) | (166,298 | ) | (211,294 | ) | (142,925 | ) | (19,270 | ) | ||||||||||
Average tangible common shareholders' equity used in ROATCE calculation | (i) | $ | 3,986,944 | $ | 3,968,479 | $ | 4,020,674 | $ | 3,455,231 | $ | 2,291,057 | |||||||||
ROAA(1) | (a)/(g) | 0.21 | % | 0.46 | % | 0.99 | % | 0.26 | % | 1.54 | % | |||||||||
Adjusted ROAA(1) | (b)/(g) | 0.70 | 0.78 | 1.42 | 1.34 | 1.59 | ||||||||||||||
ROACE(1) | (c)/(h) | 1.56 | 3.64 | 8.00 | 1.75 | 14.27 | ||||||||||||||
Adjusted ROACE(1) | (e)/(h) | 6.03 | 6.43 | 11.57 | 11.21 | 14.79 | ||||||||||||||
ROATCE(1) | (d)/(i) | 2.57 | 5.42 | 11.35 | 2.68 | 15.46 | ||||||||||||||
Adjusted ROATCE(1) | (f)/(i) | 8.70 | 9.24 | 16.25 | 14.96 | 16.02 | ||||||||||||||
(1) | Annualized. |
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited), Continued | ||||||||||||||||||||
Computation of adjusted efficiency ratio, noninterest income and noninterest expense: | ||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||
Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | ||||||||||||||||
(Dollars in thousands) | 2020 | 2020 | 2019 | 2019 | 2019 | |||||||||||||||
Noninterest expense | (a) | $ | 400,241 | $ | 374,599 | $ | 416,571 | $ | 425,620 | $ | 236,849 | |||||||||
Merger-related expenses | (81,619 | ) | (36,728 | ) | (47,025 | ) | (111,259 | ) | (4,226 | ) | ||||||||||
Write-down of company-owned vacant land parcels and branch exit costs | (551 | ) | — | (3,494 | ) | (5,890 | ) | — | ||||||||||||
Expenses related to the sale of Legacy TCF auto finance portfolio | (901 | ) | (3,063 | ) | (4,670 | ) | — | — | ||||||||||||
Pension fair valuation adjustment | — | — | (6,341 | ) | — | — | ||||||||||||||
Adjusted noninterest expense | 317,170 | 334,808 | 355,041 | 308,471 | 232,623 | |||||||||||||||
Lease financing equipment depreciation | (18,212 | ) | (18,450 | ) | (18,629 | ) | (19,408 | ) | (19,133 | ) | ||||||||||
Amortization of intangibles | (5,516 | ) | (5,480 | ) | (5,505 | ) | (4,544 | ) | (798 | ) | ||||||||||
Federal historic tax credit amortization | (179 | ) | (1,521 | ) | (4,030 | ) | — | — | ||||||||||||
Adjusted noninterest expense, efficiency ratio | (b) | 293,263 | 309,357 | 326,877 | 284,519 | 212,692 | ||||||||||||||
Net interest income | 378,359 | 401,481 | 408,753 | 371,793 | 254,057 | |||||||||||||||
Noninterest income | 133,054 | 136,963 | 158,052 | 94,258 | 109,718 | |||||||||||||||
Total revenue | (c) | 511,413 | 538,444 | 566,805 | 466,051 | 363,775 | ||||||||||||||
Noninterest income | 133,054 | 136,963 | 158,052 | 94,258 | 109,718 | |||||||||||||||
Gain on sales of branches | (14,717 | ) | — | — | — | — | ||||||||||||||
Sale of Legacy TCF auto finance portfolio | — | — | 8,194 | 19,264 | — | |||||||||||||||
Termination of interest rate swaps | — | — | — | 17,302 | — | |||||||||||||||
Gain on sales of certain investment securities | — | — | — | (5,869 | ) | — | ||||||||||||||
Loan servicing rights impairment (recovery) | 8,858 | 8,236 | (638 | ) | 4,520 | — | ||||||||||||||
Adjusted noninterest income | 127,195 | 145,199 | 165,608 | 129,475 | 109,718 | |||||||||||||||
Net interest income | 378,359 | 401,481 | 408,753 | 371,793 | 254,057 | |||||||||||||||
Net interest income FTE adjustment | 3,032 | 2,983 | 2,896 | 2,488 | 1,337 | |||||||||||||||
Adjusted net interest income | 381,391 | 404,464 | 411,649 | 374,281 | 255,394 | |||||||||||||||
Lease financing equipment depreciation | (18,212 | ) | (18,450 | ) | (18,629 | ) | (19,408 | ) | (19,133 | ) | ||||||||||
Adjusted total revenue, efficiency ratio | (d) | $ | 490,374 | $ | 531,213 | $ | 558,628 | $ | 484,348 | $ | 345,979 | |||||||||
Efficiency ratio | (a)/(c) | 78.26 | % | 69.57 | % | 73.49 | % | 91.32 | % | 65.11 | % | |||||||||
Adjusted efficiency ratio | (b)/(d) | 59.80 | 58.24 | 58.51 | 58.74 | 61.48 | ||||||||||||||
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited), Continued | ||||||||||||||||||||
Computation of tangible common equity to tangible assets and tangible book value per common share: | ||||||||||||||||||||
Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | ||||||||||||||||
(Dollars in thousands, except per share data) | 2020 | 2020 | 2019 | 2019 | 2019 | |||||||||||||||
Total equity | $ | 5,658,555 | $ | 5,655,833 | $ | 5,727,241 | $ | 5,693,417 | $ | 2,710,517 | ||||||||||
Non-controlling interest in subsidiaries | (23,300 | ) | (30,149 | ) | (20,226 | ) | (23,313 | ) | (24,858 | ) | ||||||||||
Total TCF Financial Corporation shareholders' equity | 5,635,255 | 5,625,684 | 5,707,015 | 5,670,104 | 2,685,659 | |||||||||||||||
Preferred stock | (169,302 | ) | (169,302 | ) | (169,302 | ) | (169,302 | ) | (169,302 | ) | ||||||||||
Total common stockholders' equity | (a) | 5,465,953 | 5,456,382 | 5,537,713 | 5,500,802 | 2,516,357 | ||||||||||||||
Goodwill, net | (1,313,046 | ) | (1,313,046 | ) | (1,299,878 | ) | (1,265,111 | ) | (154,757 | ) | ||||||||||
Other intangibles, net | (157,373 | ) | (162,887 | ) | (168,368 | ) | (215,910 | ) | (18,885 | ) | ||||||||||
Tangible common shareholders' equity | (b) | 3,995,534 | 3,980,449 | 4,069,467 | 4,019,781 | 2,342,715 | ||||||||||||||
Total assets | (c) | 50,062,460 | 48,594,383 | 46,651,553 | 45,692,511 | 24,626,830 | ||||||||||||||
Goodwill, net | (1,313,046 | ) | (1,313,046 | ) | (1,299,878 | ) | (1,265,111 | ) | (154,757 | ) | ||||||||||
Other intangibles, net | (157,373 | ) | (162,887 | ) | (168,368 | ) | (215,910 | ) | (18,885 | ) | ||||||||||
Tangible assets | (d) | $ | 48,592,041 | $ | 47,118,450 | $ | 45,183,307 | $ | 44,211,490 | $ | 24,453,188 | |||||||||
Common stock shares outstanding | (e) | 152,233,106 | 152,185,984 | 152,965,571 | 153,571,381 | 82,703,469 | ||||||||||||||
Common equity to assets | (a) / (c) | 10.92 | % | 11.23 | % | 11.87 | % | 12.04 | % | 10.22 | % | |||||||||
Tangible common equity to tangible assets | (b) / (d) | 8.22 | 8.45 | 9.01 | 9.09 | 9.58 | ||||||||||||||
Book value per common share | (a) / (e) | $ | 35.91 | $ | 35.85 | $ | 36.20 | $ | 35.82 | $ | 30.43 | |||||||||
Tangible book value per common share | (b) / (e) | 26.25 | 26.16 | 26.60 | 26.18 | 28.33 | ||||||||||||||
TCF FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited), Continued | |||||||||||||||||||||||||||
Composition of Loans and Allowance for Credit Losses excluding PPP | |||||||||||||||||||||||||||
Quarter Ended | Change From | ||||||||||||||||||||||||||
Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, 2020 | Jun. 30, 2019 | |||||||||||||||||||||
(Dollars in thousands) | 2020 | 2020 | 2019 | 2019 | 2019 | $ | % | $ | |||||||||||||||||||
Commercial and industrial | $12,200,721 | $12,326,943 | $11,439,602 | $10,913,343 | $6,666,106 | $ | (126,222 | ) | (1.0)% | $ | 5,534,615 | ||||||||||||||||
Commercial real estate | 9,628,344 | 9,486,904 | 9,136,870 | 8,773,970 | 3,168,774 | 141,440 | 1.5 | 6,459,570 | |||||||||||||||||||
Lease financing | 2,707,402 | 2,708,998 | 2,699,869 | 2,594,373 | 2,582,613 | (1,596 | ) | (0.1) | 124,789 | ||||||||||||||||||
Total commercial loan and lease portfolio | 24,536,467 | 24,522,845 | 23,276,341 | 22,281,686 | 12,417,493 | 13,622 | 0.1 | 12,118,974 | |||||||||||||||||||
Residential mortgage | 6,123,118 | 6,435,314 | 6,179,805 | 6,057,404 | 2,368,411 | (312,196 | ) | (4.9) | 3,754,707 | ||||||||||||||||||
Consumer installment | 1,430,655 | 1,509,953 | 1,542,411 | 1,562,252 | 1,474,480 | (79,298 | ) | (5.3) | (43,825 | ) | |||||||||||||||||
Home equity | 3,445,584 | 3,453,502 | 3,498,907 | 3,609,410 | 2,924,753 | (7,918 | ) | (0.2) | 520,831 | ||||||||||||||||||
Total consumer loan portfolio | 10,999,357 | 11,398,769 | 11,221,123 | 11,229,066 | 6,767,644 | (399,412 | ) | (3.5) | 4,231,713 | ||||||||||||||||||
Total loans and leases | 35,535,824 | 35,921,614 | 34,497,464 | 33,510,752 | 19,185,137 | (385,790 | ) | (1.1) | 16,350,687 | ||||||||||||||||||
PPP (Commercial and industrial) | 1,819,469 | — | — | — | — | $ | 1,819,469 | N.M. | 1,819,469 | ||||||||||||||||||
Loans and leases excluding PPP loans | |||||||||||||||||||||||||||
Commercial and industrial | 10,381,252 | 12,326,943 | 11,439,602 | 10,913,343 | 6,666,106 | (1,945,691 | ) | (15.8) | 3,715,146 | ||||||||||||||||||
Commercial real estate | 9,628,344 | 9,486,904 | 9,136,870 | 8,773,970 | 3,168,774 | 141,440 | 1.5 | 6,459,570 | |||||||||||||||||||
Lease financing | 2,707,402 | 2,708,998 | 2,699,869 | 2,594,373 | 2,582,613 | (1,596 | ) | (0.1) | 124,789 | ||||||||||||||||||
Total commercial loan and lease portfolio | 22,716,998 | 24,522,845 | 23,276,341 | 22,281,686 | 12,417,493 | (1,805,847 | ) | (7.4) | 10,299,505 | ||||||||||||||||||
Residential mortgage | 6,123,118 | 6,435,314 | 6,179,805 | 6,057,404 | 2,368,411 | (312,196 | ) | (4.9) | 3,754,707 | ||||||||||||||||||
Consumer installment | 1,430,655 | 1,509,953 | 1,542,411 | 1,562,252 | 1,474,480 | (79,298 | ) | (5.3) | (43,825 | ) | |||||||||||||||||
Home equity | 3,445,584 | 3,453,502 | 3,498,907 | 3,609,410 | 2,924,753 | (7,918 | ) | (0.2) | 520,831 | ||||||||||||||||||
Total consumer loan portfolio | 10,999,357 | 11,398,769 | 11,221,123 | 11,229,066 | 6,767,644 | (399,412 | ) | (3.5) | 4,231,713 | ||||||||||||||||||
Total loans and leases, excluding PPP loans | $33,716,355 | $35,921,614 | $34,497,464 | $33,510,752 | $19,185,137 | $ | (2,205,259 | ) | (6.1)% | $ | 14,531,218 | ||||||||||||||||
Allowance for credit losses | $ | 503,902 | $ | 428,571 | $ | 116,580 | $ | 124,679 | $ | 148,439 | $ | 75,331 | 17.6% | $ | 355,463 | ||||||||||||
Allowance for credit losses as a % of total loans and leases | 1.42% | 1.19% | 0.34% | 0.37% | 0.77% | 23 | bp | 65 | |||||||||||||||||||
Allowance for credit losses as a % of loans and leases, excluding PPP loans | 1.49 | 1.19 | 0.34 | 0.37 | 0.77 | 30 | 72 | ||||||||||||||||||||