WAYZATA, Minn., Oct. 19 /PRNewswire-FirstCall/ -- THIRD QUARTER HIGHLIGHTS - Diluted earnings per share of 50 cents
- Net income of $65.5 million
- Return on average assets of 2.07 percent
- Return on average common equity of 27.41 percent
- Average Power Assets(R) increased $1.1 billion, or 14 percent
- Average Power Liabilities(R) increased $773.2 million, or 10 percent
- Increased checking accounts by 17,496 to 1,612,497 accounts
- Opened eight new branches during the quarter; plan to open a total of 28
new branches in 2005
EARNINGS SUMMARY
($ in thousands, except per-share data) Three Months Nine Months
Ended September 30, Ended September 30,
2005 2004 Change 2005 2004 Change Net income $65,486 $61,712 6.1% $199,592 $187,591 6.4%
Diluted earnings
per common share .50 .45 11.1 1.50 1.36 10.3
Financial Ratios
Return on average
assets 2.07% 2.06% 2.11% 2.12%
Return on average
common equity 27.41 25.96 28.32 26.56
Net interest margin 4.43 4.56 4.51 4.54
TCF Financial Corporation (TCF) (NYSE:TCB) today reported diluted earnings per share of 50 cents for the third quarter of 2005, compared with 45 cents for the same period of 2004. Net income for the third quarter of 2005 was $65.5 million, compared with $61.7 million for the same period of 2004. For the third quarter of 2005, return on average assets ("ROA") was 2.07 percent and return on average common equity ("ROE") was 27.41 percent, compared with 2.06 percent and 25.96 percent, respectively, for the third quarter of 2004.
Chairman's Statement "The current interest rate environment and changing customer behaviors have contributed to a challenging quarter for the banking industry. TCF was not immune to these forces," said William A. Cooper, Chairman and CEO. "The flat yield curve has enabled consumers to refinance higher yielding variable- rate loans with lower cost fixed-rate loans. This has limited TCF's growth in interest income as funding costs have increased, thus compressing margins. Credit quality, however, was strong and continued to improve with the exception of Delta Airlines, Inc. ("Delta"). TCF charged off its investment in the leveraged lease due to Delta's September 14, 2005 bankruptcy filing. TCF remains focused on its long-term strategies of high-quality secured lending, product innovation and targeted new branch expansion," said Cooper.
Total Revenue Three Months
($ in thousands) Ended September 30,
2005 2004 $ Change % Change Net interest income $128,070 $124,490 $3,580 2.9%
Fees and other revenue:
Fees and service charges 69,431 71,353 (1,922) (2.7)
Card revenue 21,025 16,339 4,686 28.7
ATM revenue 10,646 11,474 (828) (7.2)
Investments and insurance
revenue 2,682 3,057 (375) (12.3)
Total banking fees
and other revenue 103,784 102,223 1,561 1.5
Leasing and equipment finance 10,197 6,864 3,333 48.6
Mortgage banking (1) 982 4,132 (3,150) (76.2)
Other 7,743 2,584 5,159 199.7
Total fees and
other revenue 122,706 115,803 6,903 6.0
Gains on sales of securities
available for sale 995 3,679 (2,684) (73.0)
Total non-interest income 123,701 119,482 4,219 3.5 Total revenue $251,771 $243,972 $7,799 3.2 Net interest margin (2) 4.43% 4.56%
Fees and other revenue as
a % of total revenue 48.74 47.47
Fees and other revenue as
a % of average assets (2) 3.89 3.87
(1) Beginning in 2005, TCF's mortgage banking business no longer
originates or sells loans (see page 10).
(2) Annualized. Net Interest Income
TCF's net interest income in the third quarter of 2005 was $128.1 million, up $3.6 million, or 3 percent, from the third quarter of 2004 and down $3.2 million, or 2 percent, from the second quarter of 2005. Net interest margin in the third quarter of 2005 was 4.43 percent, compared with 4.56 percent last year and 4.53 percent in the second quarter of 2005. The increase in net interest income from the third quarter of 2004 was primarily driven by increases in average Power Assets and Power Liabilities, partially offset by higher funding costs and the effect of a flattening yield curve. The decrease in net interest income from the second quarter of 2005 was primarily due to lower average balances of securities available for sale and residential real estate loans and higher funding costs as deposit rates increased and certain lower-cost long-term borrowings matured. The decrease in the net interest margin from the third quarter of 2004 and the second quarter of 2005 is primarily due to the rates on interest-bearing liabilities increasing more than the yields on interest-earning assets, partially reflecting an increase in customer preference for fixed-rate consumer loans.
Non-interest Income Total non-interest income in the third quarter of 2005 was $123.7 million, up $4.2 million, or 4 percent, from the third quarter of 2004 primarily due to increases in card revenues, leasing and equipment finance revenues and other revenue, partially offset by declines in fees and service charges, gains on sales of securities and mortgage banking revenues.
Fees and service charges decreased $1.9 million, or 3 percent, from the third quarter of 2004, but increased $3.6 million, or 5 percent, from the second quarter of 2005. "Deposit service charge trends showed improvement during the quarter due to increased customer transactions," said Cooper. "Fee income growth will, however, continue to be challenging for the banking industry and TCF. TCF remains focused on checking account growth to increase future fee revenue." Card revenues totaled $21 million for the third quarter of 2005, up 29 percent over the same period in 2004. The increase was primarily attributable to an increase in customer transaction volumes and related fees.
Leasing and equipment finance revenues were $10.2 million for the third quarter of 2005, up $3.3 million, or 49 percent, from the 2004 third quarter primarily due to higher operating lease and sales-type revenues. Sales-type revenues may fluctuate from quarter to quarter based on customer driven factors not within the control of TCF.
Other revenue increased $5.2 million from $2.6 million in the third quarter of 2004, primarily due to a $3.4 million gain on the sale of a branch building.
During the 2005 third quarter, TCF took advantage of market conditions and sold $99.5 million of mortgage-backed securities and realized gains of $1 million, compared with $216.3 million in sales and $3.7 million of gains for the third quarter of 2004.
New Branch Expansion "TCF's continued focus on new branch expansion resulted in the opening of eight new branches during the quarter, including five traditional branches, two supermarket branches and one campus branch," said Cooper. TCF has now opened 140 new branches since January 2000. TCF plans to open 13 new branches in the fourth quarter of 2005, consisting of nine traditional branches, three supermarket branches and one campus branch, bringing the total number of new branches to be opened in 2005 to 28.
September 30, September 30, December 31,
(# of branches) 2005 2004 1999 Total Branches
Minnesota 104 101 82
Illinois 199 194 150
Wisconsin 34 34 31
Michigan 62 58 64
Colorado 37 26 10
Indiana 6 6 1
442 419 338
New Branches*
Traditional 62 45
Supermarket 76 68
Campus 2 -
Total 140 113
% of Total Branches 32% 27%
* New branches opened since January 1, 2000. Additional information regarding the results of TCF's new branches opened since January 1, 2000 is summarized as follows: At or For the Three Months Ended
September 30,
($ in thousands) 2005 2004 Change % Change Number of checking accounts 256,452 194,686 61,766 31.7%
Average deposits:
Checking $380,004 $272,101 $107,903 39.7
Savings 264,301 140,411 123,890 88.2
Money market 27,128 20,785 6,343 30.5
Subtotal 671,433 433,297 238,136 55.0
Certificates of deposit 224,278 55,191 169,087 N.M. Total deposits $895,711 $488,488 $407,223 83.4 Total deposit fees and
other revenue $18,508 $14,010 $4,498 32.1
N.M. Not meaningful. Power Assets(R)
TCF's Power Asset lending operations continue to generate strong growth. TCF's average consumer loan balances increased $782.6 million, or 19 percent; average commercial real estate loan balances increased $207.8 million, or 10 percent; and leasing and equipment finance average balances increased $108.2 million, or 8 percent, from the third quarter of 2004.
Average Balances for the
Three Months Ended September 30,
($ in thousands) 2005 2004 Change % Change Loans and leases*:
Consumer home equity and other
Home equity:
First mortgage lien $3,194,663 $2,712,447 $482,216 17.8%
Junior lien 1,653,033 1,348,053 304,980 22.6
Total consumer
home equity 4,847,696 4,060,500 787,196 19.4
Other 34,469 39,069 (4,600) (11.8)
Total consumer
home equity and
other 4,882,165 4,099,569 782,596 19.1
Commercial real estate 2,220,563 2,012,790 207,773 10.3
Commercial business 433,641 440,010 (6,369) (1.4)
Leasing and equipment
finance 1,428,653 1,320,495 108,158 8.2
Power Assets $8,965,022 $7,872,864 $1,092,158 13.9 * Excludes residential real estate loans, loans held for sale and
operating leases. Power Liabilities(R)
Average Power Liabilities totaled $8.6 billion for the third quarter of 2005, with an average interest rate of 1.23 percent. Average Power Liabilities increased $773.2 million, or 10 percent, from the third quarter of 2004, primarily driven by increases in Premier Checking, Premier Savings and certificates of deposit, partially offset by declines in other interest- bearing checking and savings. The total number of checking accounts was 1,612,497 at September 30, 2005, up 85,545 accounts, or 6 percent, from September 30, 2004 and up 77,345 accounts, or 7 percent (annualized) from December 31, 2004.
Average Balances for the
Three Months Ended September 30,
($ in thousands) 2005 2004 Change % Change Non-interest bearing
deposits:
Retail $1,539,893 $1,512,434 $27,459 1.8%
Small business 600,374 525,466 74,908 14.3
Commercial and custodial 325,025 329,329 (4,304) (1.3)
Total non-interest
bearing deposits 2,465,292 2,367,229 98,063 4.1
Interest-bearing deposits:
Premier checking 694,835 248,217 446,618 179.9
Other checking 1,004,507 1,140,098 (135,591) (11.9)
Subtotal 1,699,342 1,388,315 311,027 22.4
Premier savings 436,690 109,681 327,009 N.M. Other savings 1,549,451 1,717,789 (168,338) (9.8)
Subtotal 1,986,141 1,827,470 158,671 8.7
Money market 632,293 738,769 (106,476) (14.4)
Subtotal 4,317,776 3,954,554 363,222 9.2
Certificates of deposit 1,770,805 1,458,905 311,900 21.4
Total interest-bearing
deposits 6,088,581 5,413,459 675,122 12.5
Power Liabilities $8,553,873 $7,780,688 $773,185 9.9
Average rate on deposits 1.23% .53% 70 bps N/A
Number of checking
accounts, period-end 1,612,497 1,526,952 85,545 5.6 N.M. Not meaningful. Residential Real Estate Loans and Securities Available for Sale
Average balances of residential real estate loans and securities available for sale (consisting primarily of mortgage-backed securities) totaled $2.2 billion for the third quarter of 2005, a decrease of $379.6 million from the third quarter of 2004. The residential real estate loans consist of first mortgage loans originated by TCF's mortgage banking operations. TCF no longer originates any new loans in its mortgage banking business, so this portfolio will continue to decline from normal amortization and prepayments. At September 30, 2005, the unrealized pre-tax loss on TCF's securities available for sale portfolio was $21.3 million.
Average Balances and Yields
for the Three Months Ended Change from
Sept. 30, June 30, Sept. 30, June 30, Sept. 30,
($ in thousands) 2005 2005 2004 2005 2004
Securities
available for
sale $1,393,742 $1,646,986 1,545,768 $(253,244) $(152,026)
Residential
real estate
loans 849,069 919,379 1,076,619 (70,310) (227,550)
Total $2,242,811 $2,566,365 $2,622,387 $(323,554) $(379,576)
Yield 5.36% 5.37% 5.46% (1)bps (10)bps Non-interest Expense
Non-interest expense totaled $154 million for the 2005 third quarter, up $6.1 million, or 4 percent, from $147.9 million for the 2004 third quarter. Compensation and employee benefits increased $2.4 million, or 3 percent, from the third quarter of 2004, primarily due to a $1.4 million increase for new branches opened during the past 12 months and a $2.8 million increase in incentives, partially offset by a $3.1 million decrease for mortgage banking. Occupancy and equipment expenses increased $2.3 million, or 10 percent, from the third quarter of 2004, primarily related to costs associated with new branches opened during the past 12 months. Deposit losses decreased $741 thousand from the third quarter of 2004, due to lower uncollectable overdraft losses, partially offset by increased fraud losses. Other expenses increased $3 million, or 9 percent, from the third quarter of 2004, primarily driven by a $1.6 million increase in operating lease depreciation expense in the leasing businesses and a $660 thousand increase in card processing and issuance expenses related to the overall increase in card volumes.
Three Months Ended
September 30, Change
($ in thousands) 2005 2004 $ % Compensation and
employee benefits $80,402 $78,010 $2,392 3.1%
Occupancy and equipment 25,931 23,673 2,258 9.5
Advertising and promotions 6,578 7,377 (799) (10.8)
Deposit account losses 6,680 7,421 (741) (10.0)
Other 34,412 31,445 2,967 9.4
Total non-interest
expense $154,003 $147,926 $6,077 4.1
Credit Quality
At September 30, 2005, TCF's allowance for loan and lease losses totaled $59 million, or .59 percent of loans and leases, compared with $79 million, or .87 percent, at September 30, 2004. The provision for credit losses for the third quarter of 2005 was $3.4 million, compared with $2.6 million for the third quarter of 2004, or an increase of $750 thousand. Delta declared bankruptcy on September 14, 2005, and TCF charged off its $18.8 million investment in the related leveraged lease. TCF increased the specific allowance for loan and lease losses assigned to the leveraged lease from $13.9 million at June 30, 2005, to $18.8 million through changes in existing leasing and equipment finance allocated allowances and $1.3 million in additional provision. In the 2005 third quarter, net loan and lease charge-offs were $20.8 million, or .85 percent (annualized) of average loans and leases, up from $3.7 million, or .17 percent (annualized), for the same period of 2004. Net loan and lease charge-offs excluding the leveraged lease loss were $2 million, or .08 percent (annualized) for the third quarter of 2005.
At September 30, 2005, TCF's over-30-day delinquency rate was .31 percent, down from .39 percent at September 30, 2004. Non-accrual loans and leases were $21.7 million, or .22 percent of net loans and leases, at September 30, 2005, compared with $46.7 million, or .51 percent, at September 30, 2004. Total non-performing assets were $38.5 million, or .30 percent of total assets, at September 30, 2005, down from $69.5 million, or .58 percent of total assets, at September 30, 2004. The decrease in non-accrual loans and non-performing assets was primarily due to the charge-off of the leveraged lease and a decline in commercial real estate owned.
Three Months Ended Nine Months Ended
September 30, September 30,
($ in thousands) 2005 2004 2005 2004 Allowance for loan and lease losses:
Balance at beginning of period $76,406 $80,025 $79,878 $76,619
Net (charge-offs) recoveries:
Consumer home equity
and other (886) (1,133) (3,211) (2,426)
Commercial real estate (34) (526) (68) (478)
Commercial business (140) (30) 2,330 (87)
Leasing and equipment
finance (19,690) (1,999) (21,217) (3,271)
Residential real estate (34) (5) (81) (46)
Total (20,784) (3,693) (22,247) (6,308)
Provision for credit losses 3,394 2,644 1,385 6,874
Acquired allowance - - - 1,791
Balance at end of period $59,016 $78,976 $59,016 $78,976 Key Indicators:
Allowance for loans and leases
as a percentage of total loans
and leases .59% .87% .59% .87% Annualized net charge-offs as
a percentage of average loans
and leases .85% .17% .31% .10% Annualized net charge-offs as
a percentage of average loans
and leases - excluding the
leveraged lease .08% .17% .05% .10% Period-end allowance as a
multiple of annualized net
charge-offs .7X 5.3X 2.0X 9.4X Income before income taxes and
provision for loan losses as a
multiple of net charge-offs 4.7X 26.0X 13.0X 46.1X
Mortgage Banking
At September 30, 2005, TCF's mortgage servicing portfolio totaled $3.6 billion and the mortgage servicing rights asset totaled $37.4 million, or 1.05 percent of the related servicing portfolio, down from $4.7 billion and $51.5 million, respectively, at September 30, 2004. The following table summarizes the components of mortgage banking revenues.
Three Months Ended
September 30,
($ in thousands) 2005 2004 Change % Change Servicing income $3,329 $4,215 $(886) (21.0)%
Less mortgage servicing rights:
Amortization 2,516 2,807 (291) (10.4)
Recovery - (1,000) 1,000 100.0
Net servicing income 813 2,408 (1,595) (66.2)
Gains on sales of loans * - 1,442 (1,442) (100.0)
Other income 169 282 (113) (40.1)
Total mortgage banking
revenue $982 $4,132 $(3,150) (76.2)
* Beginning in 2005, TCF's mortgage banking business no longer originates
or sells loans. Income Taxes
TCF's income tax expense was $28.9 million for the third quarter of 2005, or 30.61 percent of income before income tax expense, compared with $31.7 million, or 33.93 percent, for the comparable 2004 period. The lower effective income tax rate in the third quarter of 2005, compared with the second quarter of 2005, is primarily due to a reduction in the expected 2005 annual effective income tax rate related to an increased effect of permanent differences as a percentage of pre-tax income and lower expected state income taxes.
Capital During the third quarter of 2005, TCF repurchased 400,000 shares of its common stock at an average cost of $27.79 per share. TCF has 6.7 million shares remaining in its stock repurchase program authorized by its Board of Directors.
($ in thousands, At September 30, At December 31,
except per-share data) 2005 2004 Stockholders' equity $967,069 $958,418
Stockholders' equity to
total assets 7.59% 7.77%
Book value per common share 7.23 6.99 Total risk-based capital $1,008,858 10.66% $958,900 10.88%
Total risk-based capital
"well-capitalized"
requirement $946,220 10.00% $881,481 10.00%
Excess risk-based capital
over "well-capitalized"
requirement $62,638 .66% $77,419 .88% Website Information
A live webcast of TCF's conference call to discuss third quarter earnings will be hosted at TCF's website, http://www.tcfexpress.com/, on October 19, 2005 at 10:00 a.m., CDT. Additionally, the webcast is available for replay at TCF's website after the conference call. The website also includes free access to company news releases, TCF's annual report, quarterly reports, investor presentations and SEC filings.
TCF is a Wayzata, Minnesota-based national financial holding company with $12.7 billion in assets. TCF has 442 banking offices in Minnesota, Illinois, Michigan, Wisconsin, Colorado and Indiana. Other TCF affiliates provide leasing and equipment finance, securities brokerage, and investments and insurance sales.
Forward-looking Information This earnings release and other reports issued by the Company, including reports filed with the SEC, may contain "forward-looking" statements that deal with future results, plans or performance. In addition, TCF's management may make such statements orally to the media, or to securities analysts, investors or others. Forward-looking statements deal with matters that do not relate strictly to historical facts. TCF's future results may differ materially from historical performance and forward-looking statements about TCF's expected financial results or other plans are subject to a number of risks and uncertainties. These include but are not limited to possible legislative changes and adverse economic, business and competitive developments such as shrinking interest margins; deposit outflows; ability to increase the number of checking accounts and the possibility that deposit account losses (fraudulent checks, etc.) may increase; reduced demand for financial services and loan and lease products; adverse developments affecting TCF's supermarket banking relationships or any of the supermarket chains in which TCF maintains supermarket branches; changes in accounting standards or interpretations of existing standards, or monetary, fiscal or tax policies of the federal or state governments; adverse findings in tax audits; changes in credit and other risks posed by TCF's loan, lease and investment portfolios, including declines in commercial or residential real estate values; imposition of vicarious liability on TCF as lessor in its leasing operations; denial of insurance coverage for claims made by TCF; technological, computer-related or operational difficulties; adverse changes in securities markets; the risk that TCF could be unable to effectively manage the volatility of its mortgage servicing portfolio, which could adversely affect earnings; and results of litigation, including reductions in card revenues resulting from litigation brought by various merchants or merchant organizations against VISA, or other significant uncertainties. Investors should consult TCF's Annual Report to Shareholders and reports on Forms 10-K, 10-Q and 8-K for additional important information about the Company.
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per-share data)
(Unaudited)
Three Months Ended
September 30,
2005 2004 $ Change % Change
Interest income:
Loans and leases $163,178 $133,295 $29,883 22.4%
Securities available for sale 17,893 20,414 (2,521) (12.3)
Loans held for sale 2,759 2,931 (172) (5.9)
Investments 463 773 (310) (40.1)
Total interest income 184,293 157,413 26,880 17.1
Interest expense:
Deposits 26,539 10,318 16,221 157.2
Borrowings 29,684 22,605 7,079 31.3
Total interest expense 56,223 32,923 23,300 70.8
Net interest income 128,070 124,490 3,580 2.9
Provision for credit losses 3,394 2,644 750 28.4
Net interest income after
provision for credit losses 124,676 121,846 2,830 2.3
Non-interest income:
Fees and service charges 69,431 71,353 (1,922) (2.7)
Card revenue 21,025 16,339 4,686 28.7
ATM revenue 10,646 11,474 (828) (7.2)
Investments and insurance revenue 2,682 3,057 (375) (12.3)
Subtotal 103,784 102,223 1,561 1.5
Leasing and equipment finance 10,197 6,864 3,333 48.6
Mortgage banking 982 4,132 (3,150) (76.2)
Other 7,743 2,584 5,159 199.7
Fees and other revenue 122,706 115,803 6,903 6.0
Gains on sales of securities
available for sale 995 3,679 (2,684) (73.0)
Total non-interest income 123,701 119,482 4,219 3.5
Non-interest expense:
Compensation and employee benefits 80,402 78,010 2,392 3.1
Occupancy and equipment 25,931 23,673 2,258 9.5
Advertising and promotions 6,578 7,377 (799) (10.8)
Deposit account losses 6,680 7,421 (741) (10.0)
Other 34,412 31,445 2,967 9.4
Total non-interest expense 154,003 147,926 6,077 4.1
Income before income tax
expense 94,374 93,402 972 1.0
Income tax expense 28,888 31,690 (2,802) (8.8)
Net income $65,486 $61,712 $3,774 6.1 Net income per common share:
Basic $.50 $.45 $.05 11.1
Diluted $.50 $.45 $.05 11.1 Dividends declared per common share $.2125 $.1875 $.025 13.3 Average common and common equivalent
shares outstanding (in thousands):
Basic 131,702 136,184 (4,482) (3.3)
Diluted 132,052 136,844 (4,792) (3.5) TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per-share data)
(Unaudited) Nine Months Ended
September 30,
2005 2004 $ Change % Change
Interest income:
Loans and leases $464,736 $386,709 $78,027 20.2%
Securities available for sale 60,713 61,159 (446) (.7)
Loans held for sale 7,579 9,112 (1,533) (16.8)
Investments 2,609 2,441 168 6.9
Total interest income 535,637 459,421 76,216 16.6
Interest expense:
Deposits 63,123 30,331 32,792 108.1
Borrowings 84,106 63,688 20,418 32.1
Total interest expense 147,229 94,019 53,210 56.6
Net interest income 388,408 365,402 23,006 6.3
Provision for credit losses 1,385 6,874 (5,489) (79.9)
Net interest income after
provision for credit losses 387,023 358,528 28,495 7.9
Non-interest income:
Fees and service charges 192,286 204,128 (11,842) (5.8)
Card revenue 58,384 45,854 12,530 27.3
ATM revenue 31,173 32,609 (1,436) (4.4)
Investments and insurance revenue 8,326 9,949 (1,623) (16.3)
Subtotal 290,169 292,540 (2,371) (.8)
Leasing and equipment finance 31,982 29,276 2,706 9.2
Mortgage banking 2,340 13,082 (10,742) (82.1)
Other 18,392 6,657 11,735 176.3
Fees and other revenue 342,883 341,555 1,328 .4
Gains on sales of securities
available for sale 10,671 16,396 (5,725) (34.9)
Total non-interest income 353,554 357,951 (4,397) (1.2)
Non-interest expense:
Compensation and employee benefits 243,826 236,486 7,340 3.1
Occupancy and equipment 76,081 70,560 5,521 7.8
Advertising and promotions 19,603 19,785 (182) (.9)
Deposit account losses 14,116 16,949 (2,833) (16.7)
Other 98,735 88,758 9,977 11.2
Total non-interest expense 452,361 432,538 19,823 4.6
Income before income tax
expense 288,216 283,941 4,275 1.5
Income tax expense 88,624 96,350 (7,726) (8.0)
Net income $199,592 $187,591 $12,001 6.4 Net income per common share:
Basic $1.50 $1.37 $.13 9.5
Diluted $1.50 $1.36 $.14 10.3 Dividends declared per common share $.6375 $.5625 $.075 13.3 Average common and common equivalent
shares outstanding (in thousands):
Basic 132,692 137,223 (4,531) (3.3)
Diluted 133,054 137,842 (4,788) (3.5) TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except per-share data)
(Unaudited) At At At
September 30, December 31, September 30,
2005 2004 2004 ASSETS Cash and due from banks $361,595 $359,798 $354,651
Investments 79,583 103,226 92,177
Securities available for
sale 1,318,787 1,619,941 1,330,708
Loans held for sale 230,571 154,279 330,647
Loans and leases:
Consumer home equity and
other 5,035,661 4,418,588 4,222,025
Commercial real estate 2,241,069 2,154,396 2,031,031
Commercial business 438,028 424,135 444,632
Leasing and equipment
finance 1,424,317 1,375,372 1,328,116
Subtotal 9,139,075 8,372,491 8,025,804
Residential real estate 815,893 1,014,166 1,047,079
Total loans and leases 9,954,968 9,386,657 9,072,883
Allowance for loan and
lease losses (59,016) (79,878) (78,976)
Net loans and leases 9,895,952 9,306,779 8,993,907
Premises and equipment 352,154 326,667 316,833
Goodwill 152,599 152,599 152,599
Mortgage servicing rights 37,420 46,442 51,474
Other assets 308,428 270,836 374,953
$12,737,089 $12,340,567 $11,997,949 LIABILITIES AND
STOCKHOLDERS' EQUITY Deposits:
Checking $4,218,993 $3,905,987 $3,692,132
Savings 2,140,483 1,927,872 1,924,481
Money market 632,367 659,686 707,046
Subtotal 6,991,843 6,493,545 6,323,659
Certificates of deposit 1,866,425 1,468,650 1,471,164
Total deposits 8,858,268 7,962,195 7,794,823
Short-term borrowings 1,084,933 1,056,111 845,499
Long-term borrowings 1,547,690 2,048,492 2,057,608
Total borrowings 2,632,623 3,104,603 2,903,107
Accrued expenses and other
liabilities 279,129 315,351 334,753
Total liabilities 11,770,020 11,382,149 11,032,683
Stockholders' equity:
Common stock, par value
$.01 per share,
280,000,000 shares
authorized;
184,395,593;
184,939,094 and
184,964,602 shares
issued 1,844 1,849 1,850
Additional paid-in capital 496,605 518,741 517,537
Retained earnings,
subject to certain
restrictions 1,499,427 1,385,760 1,344,036
Accumulated other
comprehensive (loss)
income (13,596) (1,415) 1,471
Treasury stock at cost,
50,645,520; 47,752,934
and 46,200,454 shares,
and other (1,017,211) (946,517) (899,628)
Total stockholders'
equity 967,069 958,418 965,266
$12,737,089 $12,340,567 $11,997,949
N.M. Not meaningful. TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except per-share data)
(Unaudited) % Change from
December 31, September 30,
2004 2004 ASSETS Cash and due from banks .5% 2.0
Investments (22.9) (13.7)
Securities available for sale (18.6) (.9)
Loans held for sale 49.5 (30.3)
Loans and leases:
Consumer home equity and other 14.0 19.3
Commercial real estate 4.0 10.3
Commercial business 3.3 (1.5)
Leasing and equipment finance 3.6 7.2
Subtotal 9.2 13.9
Residential real estate (19.6) (22.1)
Total loans and leases 6.1 9.7
Allowance for loan and lease losses (26.1) (25.3)
Net loans and leases 6.3 10.0
Premises and equipment 7.8 11.1
Goodwill - -
Mortgage servicing rights (19.4) (27.3)
Other assets 13.9 (17.7)
3.2 6.2 LIABILITIES AND STOCKHOLDERS' EQUITY Deposits:
Checking 8.0 14.3
Savings 11.0 11.2
Money market (4.1) (10.6)
Subtotal 7.7 10.6
Certificates of deposit 27.1 26.9
Total deposits 11.3 13.6
Short-term borrowings 2.7 28.3
Long-term borrowings (24.4) (24.8)
Total borrowings (15.2) (9.3)
Accrued expenses and other liabilities (11.5) (16.6)
Total liabilities 3.4 6.7
Stockholders' equity:
Common stock, par value $.01 per
share, 280,000,000 shares authorized;
184,395,593; 184,939,094 and
184,964,602 shares issued (.3) (.3)
Additional paid-in capital (4.3) (4.0)
Retained earnings, subject to
certain restrictions 8.2 11.6
Accumulated other comprehensive
(loss) income N.M. N.M. Treasury stock at cost,
50,645,520; 47,752,934
and 46,200,454 shares, and
other 7.5 13.1
Total stockholders' equity .9 .2
3.2 6.2 N.M. Not meaningful.
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CREDIT QUALITY DATA
(Dollars in thousands)
(Unaudited) Allowance for loan and lease losses: At or For the Nine Months Ended September 30, 2005
Allowance Net Charge-offs
as a % of (Recoveries) (1)
Allowance Portfolio $ % Consumer home equity
and other $16,346 .32% $3,211 .09%
Commercial real estate 20,745 .93 68 -
Commercial business 6,859 1.57 (2,330) (.73)
Leasing and equipment
finance (2) 14,445 1.01 21,217 2.01
Residential real estate 621 .08 81 .01
Unallocated (3) - - - -
Total $59,016 .59 $22,247 .31 At or For the Year Ended December 31, 2004
Allowance Net Charge-offs
as a % of (Recoveries) (1)
Allowance Portfolio $ % Consumer home equity and other $9,939 .22% $3,232 .08%
Commercial real estate 20,742 .96 476 .02
Commercial business 7,696 1.81 153 .04
Leasing and equipment
finance (2) 24,566 1.79 5,545 .43
Residential real estate 796 .08 73 .01
Unallocated (3) 16,139 - - -
Total $79,878 .85 $9,479 .11 Non-performing assets: At At At Change from
Sept. 30, Dec. 31, Sept. 30, Dec. 31, Sept. 30,
2005 2004 2004 2004 2004 Non-accrual loans
and leases:
Consumer home
equity and
other $9,849 $12,187 $11,959 $(2,338) $(2,110)
Commercial real
estate 188 1,093 1,026 (905) (838)
Commercial
business 2,328 4,533 2,861 (2,205) (533)
Leasing and
equipment
finance 6,808 25,678 27,844 (18,870) (21,036)
Residential
real estate 2,515 3,387 2,763 (872) (248)
Total non-
accrual
loans and
leases 21,688 46,878 46,453 (25,190) (24,765)
Other real estate owned:
Residential real
estate 13,919 11,726 12,028 2,193 1,891
Commercial real
estate 2,886 5,465 10,717 (2,579) (7,831)
Total other
real estate
owned 16,805 17,191 22,745 (386) (5,940)
Total non-
performing
assets $38,493 $64,069 $69,198 $(25,576) $(30,705)
Over 30-day delinquency data (4): At Sept. 30, At Dec. 31, At Sept. 30,
2005 2004 2004
Principal % of Principal % of Principal % of
Balances Portfolio Balances Portfolio Balances Portfolio
Consumer home
equity and
other $17,351 .35% $15,436 .35% $15,256 .36%
Commercial
real estate 36 - 32 - 1,958 .10
Commercial
business 370 .08 404 .10 1,282 .29
Leasing and
equipment
finance 5,651 .40 8,997 .67 7,064 .54
Residential
real estate 7,610 .94 9,516 .94 9,776 .94
Total $31,018 .31 $34,385 .37 $35,336 .39
Potential Problem Loans and Leases (5): At At At Change from
Sept. 30, Dec. 31, Sept. 30, Dec. 31, Sept. 30,
2005 2004 2004 2004 2004 Commercial real
estate $28,228 $34,138 $31,397 $(5,910) $(3,169)
Commercial business 13,367 18,112 21,607 (4,745) (8,240)
Leasing and equipment
finance 9,850 18,816 17,669 (8,966) (7,819)
$51,445 $71,066 $70,673 $(19,621) $(19,228)
(1) Annualized. (2) For the nine months ended September 30, 2005, net charge-offs
excluding the leveraged lease were $2.4 million, or .23% annualized. (3) In the second quarter of 2005, TCF refined its allowance for loan and
lease losses allocation methodology resulting in the allocation of the
entire allowance for loan and lease losses to the individual loan and
lease portfolios. This change allocates the previous unallocated
portion of the allowance for loan and lease losses. (4) Excludes non-accrual loans and leases. (5) Consists of loans and leases primarily classified for regulatory
purposes as substandard and reflect the distinct possibility, but not
probability, that they will become non-performing or that TCF will not
be able to collect all amounts due according to the contractual terms
of the loan or lease agreement.
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Dollars in thousands)
(Unaudited) Three Months Ended September 30,
2005
Average Yields and
Balance Interest Rates (1) ASSETS Investments $91,355 $463 2.02%
Securities available for sale 1,393,742 17,893 5.14
Loans held for sale 206,850 2,759 5.29
Loans and leases:
Consumer home equity - variable
rate 2,392,934 43,543 7.22
Consumer home equity - fixed rate 2,454,762 41,317 6.68
Consumer - other 34,469 815 9.38
Total consumer home equity and
other 4,882,165 85,675 6.96
Commercial real estate - variable
rate 822,223 13,003 6.27
Commercial real estate - fixed
and adjustable rate 1,398,340 21,687 6.15
Total commercial real estate 2,220,563 34,690 6.20
Commercial business - variable
rate 348,030 5,284 6.02
Commercial business - fixed and
adjustable rate 85,611 1,268 5.88
Total commercial business 433,641 6,552 5.99
Leasing and equipment finance 1,428,653 24,082 6.74
Subtotal 8,965,022 150,999 6.69
Residential real estate 849,069 12,179 5.73
Total loans and leases 9,814,091 163,178 6.61 Total interest-earning assets 11,506,038 184,293 6.37 Other assets 1,125,499 Total assets $12,631,537 LIABILITIES AND STOCKHOLDERS' EQUITY Non-interest bearing deposits:
Retail $1,539,893
Small business 600,374
Commercial and custodial 325,025
Total non-interest bearing
deposits 2,465,292
Interest-bearing deposits:
Premier checking 694,835 4,654 2.66
Other checking 1,004,507 593 .23
Subtotal 1,699,342 5,247 1.23
Premier savings 436,690 3,529 3.21
Other savings 1,549,451 2,612 .67
Subtotal 1,986,141 6,141 1.23
Money market 632,293 2,091 1.31
Subtotal 4,317,776 13,479 1.24
Certificates of deposit 1,770,805 13,060 2.93
Total interest-bearing deposits 6,088,581 26,539 1.73 Total deposits 8,553,873 26,539 1.23 Borrowings:
Short-term borrowings 1,037,240 9,212 3.52
Long-term borrowings 1,757,968 20,472 4.62
Total borrowings 2,795,208 29,684 4.22 Total deposits and borrowings 11,349,081 56,223 1.97 Other liabilities 326,976 Total liabilities 11,676,057 Stockholders' equity 955,480 Total liabilities and
stockholders' equity $12,631,537
Net interest income and margin $128,070 4.43% (1) Annualized.
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Dollars in thousands)
(Unaudited) Three Months Ended September 30,
2004
Average Yields and
Balance Interest Rates (1) ASSETS Investments $94,910 $773 3.25%
Securities available for sale 1,545,768 20,414 5.28
Loans held for sale 327,953 2,931 3.56
Loans and leases:
Consumer home equity - variable
rate 2,547,648 35,646 5.57
Consumer home equity - fixed rate 1,512,853 26,035 6.85
Consumer - other 39,068 813 8.28
Total consumer home equity and
other 4,099,569 62,494 6.06
Commercial real estate - variable
rate 769,225 8,327 4.31
Commercial real estate - fixed
and adjustable rate 1,243,565 19,424 6.21
Total commercial real estate 2,012,790 27,751 5.49
Commercial business - variable rate 357,205 3,628 4.04
Commercial business - fixed and
adjustable rate 82,805 1,145 5.50
Total commercial business 440,010 4,773 4.32
Leasing and equipment finance 1,320,495 22,855 6.92
Subtotal 7,872,864 117,873 5.96
Residential real estate 1,076,619 15,422 5.72
Total loans and leases 8,949,483 133,295 5.93 Total interest-earning assets 10,918,114 157,413 5.75 Other assets 1,057,444 Total assets $11,975,558 LIABILITIES AND STOCKHOLDERS' EQUITY Non-interest bearing deposits:
Retail $1,512,434
Small business 525,466
Commercial and custodial 329,329
Total non-interest bearing
deposits 2,367,229
Interest-bearing deposits:
Premier checking 248,217 826 1.32
Other checking 1,140,098 187 .07
Subtotal 1,388,315 1,013 .29
Premier savings 109,681 498 1.81
Other savings 1,717,789 1,341 .31
Subtotal 1,827,470 1,839 .40
Money market 738,769 704 .38
Subtotal 3,954,554 3,556 .36
Certificates of deposit 1,458,905 6,762 1.84
Total interest-bearing deposits 5,413,459 10,318 .76 Total deposits 7,780,688 10,318 .53 Borrowings:
Short-term borrowings 824,955 3,057 1.47
Long-term borrowings 2,059,525 19,548 3.78
Total borrowings 2,884,480 22,605 3.12 Total deposits and borrowings 10,665,168 32,923 1.23 Other liabilities 359,488 Total liabilities 11,024,656 Stockholders' equity 950,902 Total liabilities and
stockholders' equity $11,975,558
Net interest income and margin $124,490 4.56% (1) Annualized.
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Dollars in thousands)
(Unaudited) Nine Months Ended September 30,
2005
Average Yields and
Balance Interest Rates (1) ASSETS Investments $99,502 $2,609 3.50%
Securities available for sale 1,567,059 60,713 5.17
Loans held for sale 209,184 7,579 4.84
Loans and leases:
Consumer home equity - variable
rate 2,561,936 130,074 6.79
Consumer home equity - fixed rate 2,088,550 104,784 6.71
Consumer - other 34,836 2,379 9.13
Total consumer home equity and
other 4,685,322 237,237 6.77
Commercial real estate - variable
rate 832,689 35,775 5.74
Commercial real estate - fixed
and adjustable rate 1,363,805 62,664 6.14
Total commercial real estate 2,196,494 98,439 5.99
Commercial business - variable
rate 346,674 14,379 5.55
Commercial business - fixed and
adjustable rate 78,117 3,368 5.76
Total commercial business 424,791 17,747 5.59
Leasing and equipment finance 1,410,381 72,006 6.81
Subtotal 8,716,988 425,429 6.52
Residential real estate 917,241 39,307 5.72
Total loans and leases 9,634,229 464,736 6.45 Total interest-earning assets 11,509,974 535,637 6.22 Other assets 1,099,712 Total assets $12,609,686 LIABILITIES AND STOCKHOLDERS' EQUITY Non-interest bearing deposits:
Retail $1,566,767
Small business 573,240
Commercial and custodial 316,749
Total non-interest bearing
deposits 2,456,756
Interest-bearing deposits:
Premier checking 578,967 9,709 2.24
Other checking 1,056,178 1,517 .19
Subtotal 1,635,145 11,226 .92
Premier savings 355,164 7,340 2.76
Other savings 1,586,367 6,394 .54
Subtotal 1,941,531 13,734 .95
Money market 637,696 4,726 .99
Subtotal 4,214,372 29,686 .94
Certificates of deposit 1,691,121 33,437 2.64
Total interest-bearing deposits 5,905,493 63,123 1.43
Total deposits 8,362,249 63,123 1.01 Borrowings:
Short-term borrowings 977,750 22,200 3.04
Long-term borrowings 1,981,558 61,906 4.18
Total borrowings 2,959,308 84,106 3.80 Total deposits and borrowings 11,321,557 147,229 1.74 Other liabilities 348,543 Total liabilities 11,670,100 Stockholders' equity 939,586 Total liabilities and
stockholders' equity $12,609,686
Net interest income and margin $388,408 4.51% (1) Annualized.
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Dollars in thousands)
(Unaudited) Nine Months Ended September 30,
2004
Average Yields and
Balance Interest Rates (1) ASSETS Investments $131,290 $2,441 2.48%
Securities available for sale 1,537,310 61,159 5.30
Loans held for sale 357,354 9,112 3.41
Loans and leases:
Consumer home equity - variable
rate 2,376,149 97,059 5.46
Consumer home equity - fixed rate 1,488,090 77,708 6.98
Consumer - other 39,751 2,442 8.21
Total consumer home equity and
other 3,903,990 177,209 6.06
Commercial real estate - variable
rate 759,923 23,666 4.16
Commercial real estate - fixed
and adjustable rate 1,220,457 57,306 6.27
Total commercial real estate 1,980,380 80,972 5.46
Commercial business - variable
rate 343,946 9,833 3.82
Commercial business - fixed and
adjustable rate 88,228 3,639 5.51
Total commercial business 432,174 13,472 4.16
Leasing and equipment finance 1,267,102 66,333 6.98
Subtotal 7,583,646 337,986 5.95
Residential real estate 1,130,840 48,723 5.75
Total loans and leases 8,714,486 386,709 5.92 Total interest-earning assets 10,740,440 459,421 5.71 Other assets 1,046,080 Total assets $11,786,520 LIABILITIES AND STOCKHOLDERS' EQUITY Non-interest bearing deposits:
Retail $1,508,102
Small business 491,729
Commercial and custodial 345,878
Total non-interest bearing
deposits 2,345,709
Interest-bearing deposits:
Premier checking 150,094 1,468 1.31
Other checking 1,151,426 652 .08
Subtotal 1,301,520 2,120 .22
Premier savings 47,438 606 1.71
Other savings 1,777,512 4,546 .34
Subtotal 1,824,950 5,152 .38
Money market 790,128 2,199 .37
Subtotal 3,916,598 9,471 .32
Certificates of deposit 1,502,064 20,860 1.86
Total interest-bearing deposits 5,418,662 30,331 .75 Total deposits 7,764,371 30,331 .52 Borrowings:
Short-term borrowings 743,754 7,522 1.35
Long-term borrowings 1,963,440 56,166 3.82
Total borrowings 2,707,194 63,688 3.14 Total deposits and borrowings 10,471,565 94,019 1.20 Other liabilities 373,089 Total liabilities 10,844,654 Stockholders' equity 941,866 Total liabilities and
stockholders' equity $11,786,520
Net interest income and margin $365,402 4.54% (1) Annualized.
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME AND FINANCIAL RATIOS
(Dollars in thousands, except per-share data)
(Unaudited)
Three Months Ended
Sept. 30, Jun. 30, Mar. 31,
2005 2005 2005
Interest income:
Loans and leases $163,178 $155,014 $146,544
Securities available for sale 17,893 21,325 21,495
Loans held for sale 2,759 2,566 2,254
Investments 463 1,094 1,052
Total interest income 184,293 179,999 171,345
Interest expense:
Deposits 26,539 20,646 15,938
Borrowings 29,684 28,068 26,354
Total interest expense 56,223 48,714 42,292
Net interest income 128,070 131,285 129,053
Provision for credit losses 3,394 1,427 (3,436)
Net interest income after
provision for credit losses 124,676 129,858 132,489
Non-interest income:
Fees and service charges 69,431 65,824 57,031
Card revenue 21,025 19,717 17,642
ATM revenue 10,646 10,795 9,732
Investments and insurance revenue 2,682 2,791 2,853
Subtotal 103,784 99,127 87,258
Leasing and equipment finance 10,197 11,092 10,693
Mortgage banking 982 216 1,142
Other 7,743 2,833 7,816
Fees and other revenue 122,706 113,268 106,909
Gains on sales of securities
available for sale 995 4,437 5,239
Total non-interest income 123,701 117,705 112,148
Non-interest expense:
Compensation and employee benefits 80,402 81,973 81,451
Occupancy and equipment 25,931 24,771 25,379
Advertising and promotions 6,578 6,778 6,247
Deposit account losses 6,680 3,775 3,661
Other 34,412 32,950 31,373
Total non-interest expense 154,003 150,247 148,111
Income before income tax
expense 94,374 97,316 96,526
Income tax expense 28,888 26,675 33,061
Net income $65,486 $70,641 $63,465 Net income per common share:
Basic $.50 $.53 $.47
Diluted $.50 $.53 $.47 Dividends declared per common share $.2125 $.2125 $.2125 Financial Ratios: Return on average assets (1) 2.07% 2.22% 2.03%
Return on average common equity (1) 27.41 30.23 27.18
Net interest margin (1) 4.43 4.53 4.56
Net charge-offs (recoveries) as a
percentage of average loans and
leases (1) .85 .08 (.02)
Average total equity to average
assets 7.56 7.36 7.48
Average tangible equity to average
assets 6.33 6.13 6.22 (1) Annualized.
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME AND FINANCIAL RATIOS
(Dollars in thousands, except per-share data)
(Unaudited) Three Months Ended
Dec. 31, Sept. 30,
2004 2004
Interest income:
Loans and leases $140,469 $133,295
Securities available for sale 19,484 20,414
Loans held for sale 2,421 2,931
Investments 1,014 773
Total interest income 163,388 157,413
Interest expense:
Deposits 12,250 10,318
Borrowings 24,649 22,605
Total interest expense 36,899 32,923
Net interest income 126,489 124,490
Provision for credit losses 4,073 2,644
Net interest income after
provision for credit losses 122,416 121,846
Non-interest income:
Fees and service charges 67,385 71,353
Card revenue 17,609 16,339
ATM revenue 10,326 11,474
Investments and insurance revenue 2,609 3,057
Subtotal 97,929 102,223
Leasing and equipment finance 21,047 6,864
Mortgage banking (122) 4,132
Other 7,457 2,584
Fees and other revenue 126,311 115,803
Gains on sales of securities
available for sale 6,204 3,679
Total non-interest income 132,515 119,482
Non-interest expense:
Compensation and employee benefits 86,338 78,010
Occupancy and equipment 25,057 23,673
Advertising and promotions 6,568 7,377
Deposit account losses 5,675 7,421
Other 30,758 31,445
Total non-interest expense 154,396 147,926
Income before income tax expense 100,535 93,402
Income tax expense 33,133 31,690
Net income $67,402 $61,712 Net income per common share:
Basic $.50 $.45
Diluted $.50 $.45 Dividends declared per common share $.1875 $.1875 Financial Ratios: Return on average assets (1) 2.22% 2.06%
Return on average common equity (1) 28.35 25.96
Net interest margin (1) 4.56 4.56
Net charge-offs (recoveries) as a
percentage of average loans and leases (1) .14 .17
Average total equity to average assets 7.81 7.94
Average tangible equity to average assets 6.52 6.63 (1) Annualized.
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED QUARTERLY AVERAGE BALANCE SHEETS AND SUPPLEMENTAL INFORMATION
(In thousands)
(Unaudited) Sept. 30, Jun. 30 Mar. 31,
2005 2005 2005 ASSETS Cash and due from banks $346,065 $331,110 $332,800
Investments 91,355 101,305 106,006
Securities available for sale 1,393,742 1,646,986 1,663,412
Loans held for sale 206,850 213,279 207,430
Loans and leases:
Consumer home equity - variable
rate 2,392,934 2,594,538 2,701,729
Consumer home equity - fixed
rate 2,454,762 2,048,035 1,755,164
Consumer - other 34,469 34,012 36,046
Total consumer home equity
and other 4,882,165 4,676,585 4,492,939
Commercial real estate -
variable rate 822,223 834,876 841,176
Commercial real estate - fixed
and adjustable rate 1,398,340 1,365,132 1,327,160
Total commercial real estate 2,220,563 2,200,008 2,168,336
Commercial business - variable
rate 348,030 359,269 332,555
Commercial business - fixed and
adjustable rate 85,611 73,654 74,968
Total commercial business 433,641 432,923 407,523
Leasing and equipment finance 1,428,653 1,412,520 1,389,541
Subtotal 8,965,022 8,722,036 8,458,339
Residential real estate 849,069 919,379 984,764
Total loans and leases 9,814,091 9,641,415 9,443,103
Allowance for loan and lease
losses (76,207) (76,774) (79,918)
Net loans and leases 9,737,884 9,564,641 9,363,185
Premises and equipment 345,641 333,614 328,336
Goodwill 152,599 152,599 152,599
Mortgage servicing rights 38,773 42,218 45,101
Other assets 318,628 316,281 295,107
$12,631,537 $12,702,033 $12,493,976 LIABILITIES AND STOCKHOLDERS'
EQUITY Non-interest-bearing deposits:
Retail $1,539,893 $1,589,015 $1,571,740
Small business 600,374 571,701 547,060
Commercial and custodial 325,025 311,463 313,635
Total non-interest bearing
deposits 2,465,292 2,472,179 2,432,435
Interest-bearing deposits:
Premier checking 694,835 580,093 459,385
Other checking 1,004,507 1,075,421 1,089,541
Subtotal 1,699,342 1,655,514 1,548,926
Premier savings 436,690 345,567 281,529
Other savings 1,549,451 1,603,720 1,606,560
Subtotal 1,986,141 1,949,287 1,888,089
Money market 632,293 633,762 647,197
Subtotal 4,317,776 4,238,563 4,084,212
Certificates of deposit 1,770,805 1,707,919 1,592,682
Total interest-bearing
deposits 6,088,581 5,946,482 5,676,894
Total deposits 8,553,873 8,418,661 8,109,329
Borrowings:
Short-term borrowings 1,037,240 920,471 974,853
Long-term borrowings 1,757,968 2,075,264 2,115,369
Total borrowings 2,795,208 2,995,735 3,090,222
Accrued expenses and other
liabilities 326,976 352,861 360,362
Total liabilities 11,676,057 11,767,257 11,559,913
Stockholders' equity:
Common stock 1,844 1,845 1,846
Additional paid-in capital 496,496 497,810 503,762
Retained earnings 1,473,273 1,431,903 1,394,163
Accumulated other comprehensive
loss (3,104) (1,992) (4,139)
Treasury stock at cost and other (1,013,029) (994,790) (961,569)
955,480 934,776 934,063
$12,631,537 $12,702,033 $12,493,976 Supplemental Information:
Securities available for sale $1,393,742 $1,646,986 $1,663,412
Residential real estate loans 849,069 919,379 984,764
Total securities available for
sale and residential real
estate loans $2,242,811 $2,566,365 $2,648,176 TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED QUARTERLY AVERAGE BALANCE SHEETS AND SUPPLEMENTAL INFORMATION
(In thousands)
(Unaudited) Dec. 31, Sept. 30,
2004 2004 ASSETS Cash and due from banks $350,497 $351,383
Investments 105,603 94,910
Securities available for sale 1,534,776 1,545,768
Loans held for sale 254,617 327,953
Loans and leases:
Consumer home equity - variable rate 2,699,156 2,547,648
Consumer home equity - fixed rate 1,571,494 1,512,853
Consumer - other 37,403 39,068
Total consumer home equity and
other 4,308,053 4,099,569
Commercial real estate - variable rate 805,219 769,225
Commercial real estate - fixed and
adjustable rate 1,288,793 1,243,565
Total commercial real estate 2,094,012 2,012,790
Commercial business - variable rate 353,752 357,205
Commercial business - fixed and
adjustable rate 76,906 82,805
Total commercial business 430,658 440,010
Leasing and equipment finance 1,341,985 1,320,495
Subtotal 8,174,708 7,872,864
Residential real estate 1,027,302 1,076,619
Total loans and leases 9,202,010 8,949,483
Allowance for loan and lease losses (79,502) (80,077)
Net loans and leases 9,122,508 8,869,406
Premises and equipment 322,492 313,068
Goodwill 152,599 152,599
Mortgage servicing rights 49,746 51,380
Other assets 276,498 269,091
$12,169,336 $11,975,558 LIABILITIES AND STOCKHOLDERS' EQUITY Non-interest-bearing deposits:
Retail $1,493,344 $1,512,434
Small business 557,103 525,466
Commercial and custodial 332,228 329,329
Total non-interest bearing deposits 2,382,675 2,367,229
Interest-bearing deposits:
Premier checking 343,266 248,217
Other checking 1,106,934 1,140,098
Subtotal 1,450,200 1,388,315
Premier savings 198,769 109,681
Other savings 1,621,810 1,717,789
Subtotal 1,820,579 1,827,470
Money market 685,885 738,769
Subtotal 3,956,664 3,954,554
Certificates of deposit 1,469,735 1,458,905
Total interest-bearing deposits 5,426,399 5,413,459
Total deposits 7,809,074 7,780,688
Borrowings:
Short-term borrowings 1,003,746 824,955
Long-term borrowings 2,045,505 2,059,525
Total borrowings 3,049,251 2,884,480
Accrued expenses and other liabilities 360,004 359,488
Total liabilities 11,218,329 11,024,656
Stockholders' equity:
Common stock 1,850 1,206
Additional paid-in capital 518,012 517,020
Retained earnings 1,360,169 1,318,461
Accumulated other comprehensive loss (527) (2,781)
Treasury stock at cost and other (928,497) (883,004)
951,007 950,902
$12,169,336 $11,975,558 Supplemental Information:
Securities available for sale $1,534,776 $1,545,768
Residential real estate loans 1,027,302 1,076,619
Total securities available for
sale and residential real estate loans $2,562,078 $2,622,387 TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED QUARTERLY YIELDS AND RATES (1)
(Unaudited) Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30,
2005 2005 2005 2004 2004 ASSETS Investments 2.02% 4.33% 4.01% 3.83% 3.25%
Securities available
for sale 5.14 5.18 5.17 5.08 5.28
Loans held for sale 5.29 4.83 4.41 3.78 3.56
Loans and leases:
Consumer home equity -
variable rate 7.22 6.77 6.41 6.00 5.57
Consumer home equity
- fixed rate 6.68 6.72 6.73 6.78 6.85
Consumer - other 9.38 9.19 8.83 8.17 8.28
Total consumer home
equity and other 6.96 6.77 6.56 6.30 6.06
Commercial real estate -
variable rate 6.27 5.72 5.24 4.74 4.31
Commercial real estate -
fixed and adjustable
rate 6.15 6.14 6.13 6.14 6.21
Total commercial real
estate 6.20 5.98 5.79 5.60 5.49
Commercial business -
variable rate 6.02 5.56 5.02 4.48 4.04
Commercial business -
fixed and adjustable
rate 5.88 5.75 5.65 5.77 5.50
Total commercial
business 5.99 5.59 5.14 4.71 4.32
Leasing and equipment
finance 6.74 6.83 6.85 6.86 6.92
Subtotal 6.69 6.52 6.34 6.13 5.96
Residential real estate 5.73 5.71 5.70 5.69 5.72
Total loans and leases 6.61 6.44 6.27 6.08 5.93 Total interest-
earning assets 6.37 6.22 6.06 5.87 5.75
LIABILITIES Interest-bearing deposits:
Premier checking 2.66 2.04 1.86 1.65 1.32
Other checking .23 .21 .14 .10 .07
Subtotal 1.23 .85 .65 .47 .29
Premier savings 3.21 2.51 2.38 2.20 1.81
Other savings .67 .53 .42 .30 .31
Subtotal 1.23 .88 .71 .51 .40
Money market 1.31 .99 .67 .46 .38
Subtotal 1.24 .89 .68 .49 .36
Certificates of deposit 2.93 2.65 2.32 2.01 1.84
Total interest-bearing
deposits 1.73 1.39 1.14 .90 .76
Total deposits 1.23 .98 .80 .62 .53 Borrowings:
Short-term borrowings 3.52 3.01 2.53 2.04 1.47
Long-term borrowings 4.62 4.09 3.88 3.80 3.78
Total borrowings 4.22 3.76 3.46 3.22 3.12 Total interest-
bearing liabilities 1.97 1.71 1.53 1.35 1.23
Net interest margin 4.43% 4.53% 4.56% 4.56% 4.56% (1) Annualized. DATASOURCE: TCF Financial Corporation CONTACT: Jason Korstange of TCF Financial Corporation, +1-952-745-2755 Web site: http://www.tcfexpress.com/ Company News On-Call: http://www.prnewswire.com/comp/840750.html
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