Table 4 - Credit Trends (Graphic: TCF Financial Corporation)

TCF Financial Corporation (“TCF”) (NYSE:TCB):

SECOND QUARTER HIGHLIGHTS
  • Net interest margin of 4.86 percent, up 84 bps from June 30, 2011
  • Pre-tax pre-provision profit of $108.1 million, up 13.6% from June 30, 2011
  • Total delinquent loans declined $23.7 million from March 31, 2012
  • Total loans and leases of $15.2 billion, increase of 4.1 percent from $14.6 billion at June 30, 2011
  • Completed $172.5 million preferred stock offering
  • Issued $110 million of subordinated notes
  • Acquired $778 million of deposits from Prudential Bank & Trust, FSB
  • Announced common and preferred stock dividend payments, payable August 31, 2012 and September 4, 2012, respectively
                                                                 
Summary of Financial Results     Table 1  
($ in thousands, except per-share data)         Percent Change      

 

2Q

 

1Q
2Q

 

2Q12 vs
   

2Q12 vs

 

YTD
YTD

Percent

 

2012
   

 

2012 (3)

 
      2011     1Q12       2Q11    

 

2012
        2011    

Change
 
Net income (loss) $ 31,531 $ (282,894 ) $ 30,424 N.M. % 3.6 % $ (251,363 ) $ 60,696 N.M. %
Pre-tax pre-provision profit (1) 108,118

70,578

 
95,201

53.2

13.6

178,696

 
190,508

(6.2

)
Diluted earnings (loss) per common share .20 (1.78 ) .19 N.M. 5.3 (1.58 ) .40 N.M.
 

Financial Ratios (2)
Return on average assets .76 % (5.96 ) % .68 % (2.71 ) % .68 %
Return on average common equity 8.13 (63.38 ) 7.00 (29.84 ) 7.46
Net interest margin 4.86 4.14 4.02 4.49 4.04

Net charge-offs as a percentage of average loans and leases
1.18 1.06 1.19 1.12 1.35
 
N.M. = Not meaningful.

(1) Pre-tax pre-provision profit ("PTPP") is calculated as total revenues less non-interest expense. First quarter and year-to-date 2012 PTPP excludes the net loss of $473.8 million related to the balance sheet repositioning completed in the first quarter of 2012.
(2) Annualized.

(3) Includes a net, after-tax charge of $295.8 million, or $1.87 per share, related to repositioning certain investments and borrowings.
 
 

TCF Financial Corporation (“TCF”) (NYSE:TCB) today reported net income for the second quarter of 2012 of $31.5 million, compared with net income of $30.4 million in the second quarter of 2011 and a net loss of $282.9 million for the first quarter of 2012. The net loss for the first quarter of 2012 included a net, after-tax charge of $295.8 million, or $1.87 per share, related to a balance sheet repositioning involving certain investments and borrowings. Diluted earnings per common share was 20 cents for the second quarter of 2012, compared with diluted earnings per common share of 19 cents in the second quarter of 2011 and diluted loss per common share of $1.78 in the first quarter of 2012.

TCF reported a net loss of $251.4 million for the first six months of 2012, compared with net income of $60.7 million for the same period in 2011. Diluted loss per common share for the first six months of 2012 was $1.58, compared with earnings per common share of 40 cents for the same period in 2011.

TCF declared a dividend on its 7.50 percent Series A Non-cumulative Perpetual Preferred Stock payable on September 4, 2012 to stockholders of record at the close of business on August 15, 2012. TCF also declared a quarterly cash dividend of 5 cents per common share payable on August 31, 2012 to stockholders of record at the close of business on August 15, 2012.

Chairman’s Statement

“We began the year by saying 2012 would be a ‘building and investing’ year for TCF, and at the half-way point, it has been just that,” said William A. Cooper, Chairman and Chief Executive Officer. “TCF has been proactive in preparing for the future through actions such as a balance sheet repositioning and disciplined asset growth in national lending businesses. TCF listened to what consumers want in a checking product and reintroduced TCF Free Checking to its customers during the quarter. TCF also bolstered its capital position during the quarter through preferred stock and subordinated debt offerings, while announcing the redemption of its trust preferred securities.

“The second quarter highlighted TCF’s earnings potential through a significant increase in net interest margin due to the full quarter impact of the balance sheet repositioning, as well as a change in trends in banking fees partially due to our deposit product fee structures. Meanwhile, credit quality remains a challenge as we continue to work through problem credits. We are seeing some encouraging trends in consumer real estate delinquencies, a leading indicator of consumer credit for TCF, which have decreased for a second consecutive quarter.

“I am excited about the evolution that has taken place at TCF over the past year and the return to our roots with TCF Free Checking. Today, we are in a much better position for success than we were a year ago. As we continue to build on our recent investments, I am confident in our ability to improve future stockholder value.”

Revenue
                                                                 
Total Revenue   Table 2  
        Percent Change          
2Q 1Q 2Q 2Q12 vs   2Q12 vs YTD YTD Percent
($ in thousands)     2012       2012       2011       1Q12     2Q11         2012       2011       Change  
Net interest income $ 198,224     $ 180,173     $ 176,150   10.0 % 12.5 % $ 378,397     $ 350,190   8.1 %
Fees and other revenue:
Fees and service charges 48,090 41,856 56,396 14.9 (14.7 ) 89,946 109,909 (18.2 )
Card revenue 13,530 13,207 28,219 2.4 (52.1 ) 26,737 54,803 (51.2 )
ATM revenue   6,276       6,199       7,091   1.2 (11.5 )   12,475       13,796   (9.6 )
Total banking fees 67,896 61,262 91,706 10.8 (26.0 ) 129,158 178,508 (27.6 )
Leasing and equipment finance 23,207 22,867 22,279 1.5

4.2
46,074 49,029 (6.0 )
Gains on sales of auto loans 5,496 2,250 - 144.3 N.M. 7,746 - N.M.
Other   3,168       2,355       384   34.5 N.M.   5,523       1,078   N.M.
Total fees and other revenue   99,767       88,734       114,369   12.4 (12.8 )   188,501       228,615   (17.5 )
Subtotal 297,991 268,907 290,519 10.8 2.6 566,898 578,805 (2.1 )
Gains (losses) on securities, net   13,116       76,611       (227 ) (82.9 ) N.M.   89,727       (227 ) N.M.
Total revenue $ 311,107     $ 345,518     $ 290,292   (10.0 ) 7.2 $ 656,625     $ 578,578   13.5
 
Net interest margin (1) 4.86 % 4.14 % 4.02 % 4.49 % 4.04 %

Fees and other revenue as a % of total revenue
32.07 25.68 39.40 28.71 39.51
 
N.M. = Not meaningful.
(1) Annualized.
 

Net Interest Income
  • Net interest income for the second quarter of 2012 increased $22.1 million, or 12.5 percent, compared with the second quarter of 2011. The increase was primarily due to the balance sheet repositioning completed in the first quarter of 2012, which resulted in a $37.9 million reduction to the cost of borrowings, partially offset by a $13.9 million reduction of interest income on mortgage-backed securities. Additionally, average balances of inventory finance loans and auto finance loans were higher, and the average cost of deposits was lower, during the second quarter of 2012 compared to the same period in 2011. Offsetting the increase in net interest income were lower yields on leasing and equipment finance loans and leases and consumer and commercial real estate loans as the portfolio rebalances to the current rate environment. Net interest income for the second quarter of 2012 increased $18.1 million, or 10 percent, compared with the first quarter of 2012. The increase in net interest income from the first quarter of 2012 was primarily due to the full quarter impact of the balance sheet repositioning, which resulted in a $28.6 million reduction to the cost of borrowings, partially offset by a $12.4 million reduction of interest income on mortgage-backed securities. Also offsetting the increase was reduced interest income on loans and leases, driven by lower yields on consumer and commercial loans, offset by higher average balances of inventory finance and auto finance loans.
  • Net interest margin in the second quarter of 2012 was 4.86 percent, compared with 4.02 percent in the second quarter of 2011. This increase was primarily due to lower average cost of borrowings due to the effects of the balance sheet repositioning, which increased net interest margin by 92 basis points, as well as decreased rates on various deposit products and a positive mix shift to the higher yielding business lines including inventory finance and auto finance. These increases were partially offset by a decrease in yields in the consumer, commercial, and leasing and equipment finance portfolios as a result of the lower interest rate environment. Net interest margin increased by 72 basis points from 4.14 percent in the first quarter of 2012. This increase was primarily due to a lower average cost of borrowings due to the effects of the balance sheet repositioning, which increased net interest margin by 69 basis points, and growth in the inventory finance and auto finance portfolios. These increases were partially offset by decreased levels of higher yielding loans in the consumer portfolio as a result of the lower interest rate environment and increased balances in higher rate deposit accounts.
  • At June 30, 2012, interest-bearing deposits held at the Federal Reserve and unencumbered securities were $1.1 billion, an increase of $395 million from the second quarter of 2011 and $46 million from the first quarter of 2012.

Non-interest Income
  • Banking fees and service charges in the second quarter of 2012 were $48.1 million, down $8.3 million, or 14.7 percent, from the second quarter of 2011 and up $6.2 million, or 14.9 percent, from the first quarter of 2012. The decrease in banking fees and revenues from the second quarter of 2011 was primarily due to checking account program changes that resulted in a reduced number of accounts. The increase from the first quarter of 2012 was primarily due to seasonality of checking account transactions and our deposit product fee structure changes.
  • Card revenues were $13.5 million in the second quarter of 2012, a decrease of $14.7 million, or 52.1 percent, from the second quarter of 2011 and up $323 thousand, or 2.4 percent, from the first quarter of 2012. The decrease from the prior year is due to new debit card interchange regulations which took effect on October 1, 2011. The increase in card revenue from the first quarter of 2012 was primarily due to seasonal increases in transaction volume offset by a lower number of active checking accounts.
  • TCF sold $144.1 million of auto loans and recognized $5.5 million in associated gains during the second quarter of 2012, compared with the sale of $72 million of auto loans and recognition of $2.3 million in associated gains during the first quarter of 2012.
  • During the second quarter of 2012, TCF recognized a $13.1 million gain on sales of securities on the sale of its Visa ® Class B stock.
Loans and Leases
                                                     
Period-End and Average Loans and Leases     Table 3  
          Percent Change          
($ in thousands) 2Q 1Q 2Q 2Q12 vs   2Q12 vs YTD YTD Percent
  2012     2012     2011     1Q12     2Q11       2012     2011     Change  
Period-End:
Consumer real estate $ 6,811,784 $ 6,815,909 $ 7,018,240 (.1 ) % (2.9 ) %
Commercial 3,523,070 3,467,089 3,614,395 1.6 (2.5 )
Leasing and equipment finance 3,151,105 3,118,755 3,055,878 1.0 3.1
Inventory finance 1,457,263 1,637,958 905,922 (11.0 ) 60.9
Auto finance 262,188 139,047 - 88.6 N.M.
Other   29,094     29,178     37,510 (.3 ) (22.4 )
Total $ 15,234,504   $ 15,207,936   $ 14,631,945 .2 4.1
 
Average:
Consumer real estate $ 6,793,415 $ 6,845,063 $ 7,034,448 (.8 ) (3.4 ) $ 6,819,239 $ 7,068,018 (3.5 ) %
Commercial 3,492,049 3,457,720 3,597,644 1.0 (2.9 ) 3,474,885 3,610,481 (3.8 )
Leasing and equipment finance 3,145,914 3,128,329 3,068,550 .6 2.5 3,137,122 3,093,969 1.4
Inventory finance 1,571,004 1,145,183 978,505 37.2 60.6 1,353,469 925,913 46.2
Auto finance 223,893 85,562 - 161.7 N.M. 154,728 - N.M.
Other   17,647     17,582     19,463 .4 (9.3 )   17,612     20,603 (14.5 )
Total $ 15,243,922   $ 14,679,439   $ 14,698,610 3.8 3.7 $ 14,957,055   $ 14,718,984 1.6
 
N.M. = Not meaningful.
 
  • Loans and leases were $15.2 billion at June 30, 2012, an increase of $602.6 million, or 4.1 percent, compared with June 30, 2011, and flat compared with March 31, 2012. The increase from June 30, 2011 was primarily due to growth in the inventory finance and auto finance portfolios, partially offset by lower balances in consumer real estate and commercial loans. The increase in the inventory finance portfolio from the second quarter of 2011 was primarily due to the funding of dealers of Bombardier Recreational Products Inc. (“BRP”), which began on February 1, 2012. Increases in auto finance and commercial loans from the first quarter of 2012 were offset by decreases in inventory finance loans as a result of payments related to seasonal sales in the powersports and lawn and garden segments. Auto finance loans are expected to continue growing throughout 2012 as Gateway One Lending and Finance, LLC (“Gateway One”) expands its sales force, number of active dealers and number of states in its network. Gateway One increased its portfolio of managed loans, which includes loans, loans held for sale, and loans sold and serviced for others, by 40.4 percent to $780.3 million at June 30, 2012 from $555.8 million at March 31, 2012. Gateway One expanded its active dealers to 5,420 at June 30, 2012 from 4,452 at March 31, 2012.
  • Average loans and leases were $15.2 billion at June 30, 2012, an increase of $545.3 million, or 3.7 percent, compared with June 30, 2011, and an increase of $564.5 million, or 3.8 percent, compared with March 31, 2012. The increases from June 30, 2011 and from March 31, 2012 were primarily due to growth in the inventory finance and auto finance portfolios, partially offset by a decrease in the consumer real estate portfolio. The decreases in the average consumer real estate portfolios reflect a decline in production of new fixed-rate first mortgage loans as market rates available for such loans are not as attractive to TCF. The increase in average inventory finance portfolios from both the second quarter of 2011 and the first quarter of 2012 was primarily due to the funding of dealers of BRP products.

Credit Quality

(Table 4 - Credit Trends: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50344889&lang=en )
  • Over 60-day delinquencies decreased from March 31, 2012 and net charge-offs remained under peak 2010 levels, down $15.9 million year-to-date compared with the same 2011 period. Non-performing assets increased from the first quarter due to increased non-accrual loans, primarily in commercial real estate.
     
Credit Quality Summary of Performing and Underperforming Loans and Leases Table 5  
           
($ in thousands) 60+ Days Non-accrual
Performing Loans and Leases (1) Delinquent and Loans and Total Loans

June 30, 2012
Non-classified     Classified (2)     Total     Accruing     Leases     and Leases
Consumer real estate $ 6,547,940 $ 22,485 $ 6,570,425 $ 100,681 $ 140,678 $ 6,811,784
Commercial 3,070,917 296,322 3,367,239 5,616 150,215 3,523,070
Leasing and equipment finance 3,103,094 15,687 3,118,781 2,895 29,429 3,151,105
Inventory finance 1,446,730 8,427 1,455,157 206 1,900 1,457,263
Auto finance 262,046 - 262,046 142 - 262,188
Other   26,856       -       26,856       34       2,204       29,094
Total loans and leases $ 14,457,583     $ 342,921     $ 14,800,504     $ 109,574     $ 324,426     $ 15,234,504
Percent of total loans and leases 94.9

%

 
2.3 % 97.2

%

 
.7

%

 
2.1

%

 
100.0 %
                                                 
 
60+ Days Non-accrual
Performing Loans and Leases (1) Delinquent and Loans and Total Loans

March 31, 2012
Non-classified     Classified (2)     Total     Accruing     Leases     and Leases
Consumer real estate $ 6,542,851 $ 20,099 $ 6,562,950 $ 103,655 $ 149,304 $ 6,815,909
Commercial 3,013,883 314,104 3,327,987 3,425 135,677 3,467,089
Leasing and equipment finance 3,071,833 19,956 3,091,789 6,951 20,015 3,118,755
Inventory finance 1,630,126 6,538 1,636,664 185 1,109 1,637,958
Auto finance 138,879 - 138,879 168 - 139,047
Other   26,288       -       26,288       52       2,838       29,178
Total loans and leases $ 14,423,860     $ 360,697     $ 14,784,557     $ 114,436     $ 308,943     $ 15,207,936
Percent of total loans and leases 94.8

%

 
2.4 % 97.2

%

 
.8

%

 
2.0

%

 
100.0 %
                                                 
 
60+ Days Non-accrual
Performing Loans and Leases (1) Delinquent and Loans and Total Loans

December 31, 2011
Non-classified     Classified (2)     Total     Accruing     Leases     and Leases
Consumer real estate $

6,614,679
$

21,606
$ 6,636,285 $ 109,635 $ 149,371 $ 6,895,291
Commercial 2,990,515 330,310 3,320,825 1,148 127,519 3,449,492
Leasing and equipment finance 3,093,194 22,227 3,115,421 6,255 20,583 3,142,259
Inventory finance 616,677 7,040 623,717 160 823 624,700
Auto finance 3,231 - 3,231 397 - 3,628
Other   34,829       -       34,829       41       15       34,885
Total loans and leases $

13,353,125
    $

381,183
    $ 13,734,308     $ 117,636     $ 298,311     $ 14,150,255
Percent of total loans and leases

94.4

%

 

2.7
% 97.1

%

 
.8

%

 
2.1

%

 
100.0 %
 

(1) Includes all loans and leases, including TDRs, that are not 60+ days delinquent or on non-accrual status.
(2) Excludes classified loans and leases that are 60+ days delinquent. Classified loans and leases are those for which management has concerns regarding the borrower's ability to meet the existing terms and conditions, but may never become non-performing or result in a loss.
 
  • Performing loans and leases includes all loans and leases, including TDRs, that are not over 60-days delinquent or on non-accrual status. Performing loans and leases comprised 97.2 percent of total loans and leases at June 30, 2012, flat compared with March 31, 2012.
  • The over 60-day delinquency rate was .73 percent, down from .77 percent at March 31, 2012 and unchanged from June 30, 2011. The decrease from the first quarter of 2012 was primarily due to decreases in leasing and equipment finance and consumer real estate delinquencies.
  • Non-accrual loans and leases were $324.4 million at June 30, 2012, an increase of $15.5 million, or 5 percent, from March 31, 2012 and an increase of $2.7 million, or less than 1 percent, from June 30, 2011. The increase from March 31, 2012 was primarily due to a $15.8 million increase in commercial real estate non-accrual loans and one large non-accrual lease, partially offset by an $8.6 million decrease in consumer real estate non-accrual loans. The slight increase from June 30, 2011 was primarily due to increased commercial real estate non-accrual loans, partially offset by decreases in consumer real estate and commercial business non-accrual loans. Of the $324.4 million of non-accrual loans and leases at June 30, 2012, 39 percent were less than 60 days past due.
  • Other real estate owned was $125.9 million at June 30, 2012, a decrease of $1.3 million from March 31, 2012 and a decrease of $10.6 million from June 30, 2011. The decrease from June 30, 2011 was primarily due to a decrease in the number of consumer properties owned.
  • Consumer real estate TDRs include loans where a payment modification (but generally not a reduction of principal) has been granted to a residential real estate customer. Based on clarifying guidance from the Securities and Exchange Commission, beginning in the second quarter of 2012, TCF now classifies trial modifications as TDRs at the beginning of the trial period. Previously, these loans were not classified as TDRs until performance was demonstrated at a reduced payment amount during a short trial period, resulting in a one-time $13.4 million increase of TDRs during the second quarter of 2012. Accruing consumer real estate TDRs totaled $465.6 million at June 30, 2012, and averaged 17 months since modification. These loans had a weighted average yield of 4 percent, and are reserved at an average rate of 14.1 percent. Of the accruing consumer real estate TDRs, 8.13 percent were over 60-days delinquent at June 30, 2012. Included in the $465.6 million of accruing consumer real estate TDRs at June 30, 2012 are $336.4 million, or 72% of the total, of “non-classified” loans, meaning the loans were current and have not been delinquent for at least six months.
  • Commercial TDRs include loans where a payment or other modification (but generally not a reduction of principal) has been granted. Accruing commercial TDRs had a weighted average yield of 5.3 percent.
Allowance for Loan and Lease Losses
 
Credit Quality Summary   Table 6
($ in thousands)     Percent Change    
2Q 1Q 2Q 2Q12 vs   2Q12 vs YTD YTD Percent

Allowance for Loan and Lease Losses
2012       2012       2011       1Q12       2Q11         2012       2011       Change    
Balance at beginning of period $ 265,293 $ 255,672 $ 255,308 3.8 % 3.9 % $ 255,672 $ 265,819 (3.8 ) %
Charge-offs (49,833 ) (44,675 ) (48,457 ) 11.6 2.8 (94,509 ) (109,561 ) (13.7 )
Recoveries 4,974   5,742   4,612   (13.4 ) 7.8 10,716   9,904   8.2
Net charge-offs (44,859 ) (38,933 ) (43,845 ) 15.2 2.3 (83,793 ) (99,657 ) (15.9 )
Provision for credit losses 54,106 48,542 44,005 11.5 23.0 102,648 89,279 15.0
Other (379 ) 12   4   N.M.

N.M.
(366 ) 31   N.M.
Balance at end of period $ 274,161   $ 265,293   $ 255,472   3.3 7.3 $ 274,161   $ 255,472   7.3
 
Net charge-offs as a percentage of
average loans and leases (1)
Consumer real estate
First mortgage lien 1.58

%

 
1.66

%

 
1.78 % (8 ) bps (20 ) bps 1.62 1.80 (18 ) bps
Junior lien 3.07 3.03 2.75 4 32 3.05 2.56 49
Total consumer real estate 2.05 2.09 2.09 (4 ) (4 ) 2.07 2.04 3
Commercial .97 .18 .30 79 67 .57 1.13 (56 )
Leasing and equipment finance .15 .02 .45 13 (30 ) .08 .41 (33 )
Inventory finance .06 .22 .13 (16 ) (7 ) .13 .12 1
Auto finance .14 .01 - 13 14 .11 - 11

Other

N.M.

N.M.

N.M.

N.M.

N.M.

N.M.

N.M.

N.M.
Total 1.18 1.06 1.19 12 (1 ) 1.12 1.35 (23 )
 

Allowance as a percentage of period end loans and leases
1.80

%

 
1.74

%

 
1.75 % 1.80

%

 
1.75 %
Ratio of allowance to net charge-offs (1) 1.50

X

 
1.70

X

 
1.50 X 1.60

X

 
1.30 X
 
N.M. = Not meaningful.
(1) Annualized.                                                                    
 
  • Allowance for loan and lease losses was $274.2 million, or 1.80 percent of loans and leases, an increase of $8.9 million, compared with $265.3 million, or 1.74 percent, at March 31, 2012 and an increase of $18.7 million, compared with $255.5 million, or 1.75 percent, at June 30, 2011.
  • Provision for credit losses was $54.1 million, an increase of $5.6 million from $48.5 million recorded in the first quarter of 2012 and an increase of $10.1 million from $44 million in the second quarter of 2011. The increase from both periods was primarily due to increased provision expense on commercial loans and a $4 million reserve loss on one large lease exposure. The increase from the first quarter of 2012 was partially offset by decreased provision expense in inventory finance due to the first quarter on-boarding of the BRP program and lower seasonal loan balances.
  • Net loan and lease charge-offs were $44.9 million, or 1.18 percent, annualized, of average loans and leases, up $6 million from $38.9 million, or 1.06 percent, annualized, in the first quarter of 2012 and up $1.1 million from $43.8 million, or 1.19 percent, annualized, in the second quarter of 2011. The increase in net charge-offs from the first quarter of 2012 was primarily due to increased net charge-offs on commercial real estate loans. The increase in net charge-offs from the second quarter of 2011 was primarily due to increased net charge-offs on commercial real estate loans, partially offset by decreased net charge-offs on leasing and equipment finance loans and leases.
Deposits
   
Average Deposits   Table 7
        Percent Change      
($ in thousands) 2Q 1Q 2Q 2Q12 vs   2Q12 vs YTD YTD Percent
2012   2012   2011   1Q12   2Q11   2012   2011   Change  
 
Checking $ 4,636,701 $ 4,565,065 $ 4,570,543 1.6 % 1.4 % $ 4,600,882 $ 4,536,427 1.4 %
Savings 6,053,264 5,905,118 5,628,249 2.5 7.6 5,979,191 5,536,823 8.0
Money market   748,016       662,493       648,862 12.9 15.3   705,255       661,114 6.7
Subtotal 11,437,981 11,132,676 10,847,654 2.7 5.4 11,285,328 10,734,364 5.1
Certificates   1,608,653       1,135,673       1,092,368 41.6 47.3   1,372,164       1,092,452 25.6
Total deposits $ 13,046,634     $ 12,268,349     $ 11,940,022 6.3 9.3 $ 12,657,492     $ 11,826,816 7.0
 
Average interest rate on deposits (1) .31 % .30 % .38 % .31 % .40 %
 
(1) Annualized.  
 
  • Total average deposits increased $1.1 billion, or 9.3 percent, from the second quarter of 2011 and increased $778.3 million, or 6.3 percent, from the first quarter of 2012, primarily due to the assumption of $778 million of deposits from Prudential Bank & Trust, FSB (“PB&T”). The deposits consist primarily of IRA accounts with certificates of deposit, savings accounts and brokerage sweep accounts gathered by PB&T through its relationship with Prudential Retirement.
  • The average interest cost of deposits in the second quarter of 2012 was .31 percent, down 7 basis points from the second quarter of 2011 and basically flat from the first quarter of 2012. The decrease in the average interest cost of deposits from the second quarter of 2011 was primarily due to pricing strategies on certain deposit products, partially offset by higher average interest costs on the PB&T deposits assumed in June 2012.
Non-interest Expense
 
Non-interest Expense   Table 8  
          Percent Change      
($ in thousands) 2Q 1Q 2Q 2Q12 vs   2Q12 vs YTD YTD Percent
  2012     2012     2011   1Q12     2Q11       2012     2011   Change  

Compensation and employee benefits
$ 97,787 $ 95,967 $ 89,082 1.9 % 9.8 % $ 193,754 $ 178,439 8.6 %
Occupancy and equipment 32,731 32,246 30,783 1.5 6.3 64,977 62,942 3.2
FDIC insurance 8,469 6,386 7,542 32.6 12.3 14,855 14,737 .8
Advertising and marketing 5,404 2,617 3,479 106.5 55.3 8,021 6,639 20.8
Deposit account premiums 1,690 5,971 6,166 (71.7 ) (72.6 ) 7,661 9,364 (18.2 )
Other   36,956     37,296       37,067 (.9 ) (.3 )   74,252     71,633 3.7
Core operating expenses 183,037 180,483 174,119 1.4 5.1 363,520 343,754 5.8
Loss on termination of debt - 550,735 - (100.0 ) - 550,735 - N.M.

Foreclosed real estate and repossessed assets, net
12,059 11,047 12,617 9.2 (4.4 ) 23,106 25,485 (9.3 )
Operating lease depreciation 6,417 6,731 7,859 (4.7 ) (18.3 ) 13,148 15,787 (16.7 )
Other credit costs, net   1,476     (288 )     496 N.M. 197.6   1,188     3,044 (61.0 )
Total non-interest expense $ 202,989   $ 748,708     $ 195,091 (72.9 ) 4.0 $ 951,697   $ 388,070 145.2
 
N.M. = Not meaningful.
 
  • Compensation and employee benefits expense increased $8.7 million, or 9.8 percent, from the second quarter of 2011 and increased $1.8 million, or 1.9 percent, from the first quarter of 2012. The increase from the second quarter of 2011 was primarily due to Gateway One, acquired in November 2011, as well as increased staffing levels to support the increased assets of the BRP program in Inventory Finance. The increase from the first quarter of 2012 was primarily due to higher salary expense in the auto finance business as it ramps up capacity to originate and service higher loan volumes, increased lending staff across all businesses and an increase in medical plan expenses, partially offset by the seasonal decrease in payroll taxes.
  • FDIC insurance expense increased $927 thousand, or 12.3 percent, from the second quarter of 2011 and increased $2.1 million, or 32.6 percent, from the first quarter of 2012. These increases were primarily due to increased insurance rates as a result of the net loss associated with the balance sheet repositioning completed in the first quarter of 2012.
  • Foreclosed real estate and repossessed asset expense decreased $558 thousand, or 4.4 percent, from the second quarter of 2011 and increased $1 million, or 9.2 percent, from the first quarter of 2012. The decrease from the second quarter of 2011 was primarily due to fewer consumer real estate properties owned. The increase from the first quarter of 2012 was primarily due to increased write-downs on commercial real estate properties owned.
Capital and Borrowing Capacity
 
Capital Information   Table 9  
At period end        
($ in thousands, except per-share data) 2Q 4Q
2012 2011
Total equity $ 1,755,908 $ 1,878,627
Total equity to total assets 9.83 % 9.90 %
Book value per common share $ 9.67 $ 11.65
Tangible realized common equity to tangible assets (1) 7.50 % 8.42 %
 
Risk-based capital
Tier 1 $ 1,508,176 10.53 % $ 1,706,926 12.67 %
Total (2) 1,877,714 13.11 1,994,875 14.80
 

Tier 1 leverage capital
$ 1,508,176 8.64 % $ 1,706,926 9.15 %
 

Tier 1 common capital (3)
$ 1,326,518 9.26 % $ 1,581,432 11.74 %
 

(1) Excludes the impact of goodwill, other intangibles and accumulated other comprehensive income (loss) (see“Reconciliation of GAAP to Non-GAAP Measures” table).
(2) The Company's capital ratios continue to be in excess of "Well-capitalized" regulatory benchmarks.

(3) Excludes the effect of qualifying trust preferred securities and qualifying non-controlling interest in subsidiaries (see“Reconciliation of GAAP to Non-GAAP Measures” table).
 
  • During the second quarter of 2012, TCF issued $172.5 million of 7.50 percent Series A Non-Cumulative Perpetual Preferred Stock, par value $.01 per share. The preferred stock qualifies as Tier 1 capital.
  • On June 25, 2012, TCF announced that it will fully redeem $115 million of 10.75 percent trust preferred securities on July 30, 2012. As a result, the trust preferred securities are no longer included within the computation of Tier 1 capital.
  • Also during the second quarter of 2012, TCF National Bank issued $110 million of subordinated notes. The notes are due June 8, 2022 and bear interest at a fixed rate of 6.25% until maturity, and qualify as Tier 2 capital.
  • On July 18, 2012, the Board of Directors of TCF declared a regular quarterly cash dividend of 5 cents per common share payable on August 31, 2012 to stockholders of record at the close of business on August 15, 2012 and a dividend on the 7.50 percent Series A Non-cumulative Perpetual Preferred Stock payable on September 4, 2012 to stockholders of record at the close of business on August 15, 2012.
  • At June 30, 2012, TCF had $2.7 billion in unused, secured borrowing capacity at the FHLB of Des Moines, $525 million in unused, secured borrowing capacity at the Federal Reserve Discount Window and $532 million in unused borrowing capacity under existing federal funds lines.

Website Information

A live webcast of TCF’s conference call to discuss the second quarter earnings will be hosted at TCF’s website, http://ir.tcfbank.com, on July 19, 2012 at 10:00 a.m. CT. Additionally, the webcast will be 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, investor presentations and SEC filings.
 

TCF is a Wayzata, Minnesota-based national bank holding company with $17.9 billion in total assets at June 30, 2012. TCF has over 430 branches in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana, Arizona and South Dakota, providing retail and commercial banking services. TCF, through its subsidiaries, also conducts commercial leasing and equipment finance business and leverage lending in all 50 states, commercial inventory finance business in the U.S. and Canada, and indirect auto finance business in over 30 states. For more information about TCF, please visit http://ir.tcfbank.com.
 

Cautionary Statements for Purposes of the Safe Harbor Provisions of the Securities Litigation Reform Act

Any statements contained in this earnings release regarding the outlook for the Company’s businesses and their respective markets, such as projections of future performance, guidance, statements of the Company’s plans and objectives, forecasts of market trends and other matters, are forward-looking statements based on the Company’s assumptions and beliefs. Such statements may be identified by such words or phrases as “will likely result,” “are expected to,” “will continue,” “outlook,” “will benefit,” “is anticipated,” “estimate,” “project,” “management believes” or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those discussed in such statements and no assurance can be given that the results in any forward-looking statement will be achieved. For these statements, TCF claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Any forward-looking statement speaks only as of the date on which it is made, and we disclaim any obligation to subsequently revise any forward-looking statement to reflect events or circumstances after such date or to reflect the occurrence of anticipated or unanticipated events.

Certain factors could cause the Company’s future results to differ materially from those expressed or implied in any forward-looking statements contained in this release. These factors include the factors discussed in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2011 under the heading “Risk Factors,” the factors discussed below and any other cautionary statements, written or oral, which may be made or referred to in connection with any such forward-looking statements. Since it is not possible to foresee all such factors, these factors should not be considered as complete or exhaustive.

Adverse Economic or Business Conditions, Credit and Other Risks Deterioration in general economic and banking industry conditions, including defaults, anticipated defaults or rating agency downgrades of sovereign debt (including debt of the U.S.), or continued high rates of or increases in unemployment in TCF’s primary banking markets; adverse economic, business and competitive developments such as shrinking interest margins, deposit outflows, deposit account attrition or an inability to increase the number of deposit accounts; adverse changes in credit quality and other risks posed by TCF’s loan, lease, investment and securities available for sale portfolios, including declines in commercial or residential real estate values or changes in the allowance for loan and lease losses dictated by new market conditions or regulatory requirements; interest rate risks resulting from fluctuations in prevailing interest rates or other factors that result in a mismatch between yields earned on TCF’s interest-earning assets and the rates paid on its deposits and borrowings; foreign currency exchange risks; counterparty risk, including the risk of defaults by our counterparties or diminished availability of counterparties who satisfy our credit quality requirements; decreases in demand for the types of equipment that TCF leases or finances; limitations on TCF’s ability to attract and retain manufacturers and dealers to expand the inventory finance business.

Legislative and Regulatory Requirements New consumer protection and supervisory requirements and regulations, including those resulting from action by the CFPB and changes in the scope of Federal preemption of state laws that could be applied to national banks; the imposition of requirements with an adverse impact relating to TCF’s lending, loan collection and other business activities as a result of the Dodd-Frank Act, or other legislative or regulatory developments such as mortgage foreclosure moratorium laws or imposition of underwriting or other limitations that impact the ability to use certain variable-rate products; impact of legislative, regulatory or other changes affecting customer account charges and fee income; changes to bankruptcy laws which would result in the loss of all or part of TCF’s security interest due to collateral value declines; deficiencies in TCF’s compliance under the Bank Secrecy Act in past or future periods, which may result in regulatory enforcement action including monetary penalties; increased health care costs resulting from Federal health care reform legislation; adverse regulatory examinations and resulting enforcement actions or other adverse consequences such as increased capital requirements or higher deposit insurance assessments; heightened regulatory practices, requirements or expectations, including, but not limited to, requirements related to the Bank Secrecy Act and anti-money laundering compliance activity.

Earnings/Capital Risks and Constraints, Liquidity Risks Limitations on TCF’s ability to pay dividends or to increase dividends because of financial performance deterioration, regulatory restrictions or limitations; increased deposit insurance premiums, special assessments or other costs related to adverse conditions in the banking industry, the economic impact on banks of the Dodd-Frank Act and other regulatory reform legislation; the impact of financial regulatory reform, including the phase out of trust preferred securities in tier 1 capital called for by the Dodd-Frank Act, or additional capital, leverage, liquidity and risk management requirements or changes in the composition of qualifying regulatory capital (including those resulting from U.S. implementation of Basel III requirements); adverse changes in securities markets directly or indirectly affecting TCF’s ability to sell assets or to fund its operations; diminished unsecured borrowing capacity resulting from TCF credit rating downgrades and unfavorable conditions in the credit markets that restrict or limit various funding sources; costs associated with new regulatory requirements or interpretive guidance relating to liquidity; uncertainties relating to customer opt-in preferences with respect to overdraft fees on point of sale and ATM transactions or the success of TCF’s reintroduction of the Free Checking product which may have an adverse impact on TCF’s fee revenue; uncertainties relating to future retail deposit account changes, including limitations on TCF’s ability to predict customer behavior and the impact on TCF’s fee revenues.

Competitive Conditions; Supermarket Branching Risk; Growth Risks 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 including the announcement on July 11, 2012 by SuperValu that it is exploring strategic alternatives; customers completing financial transactions without using a bank; the effect of any negative publicity; slower than anticipated growth in existing or acquired businesses; inability to successfully execute on TCF’s growth strategy through acquisitions or cross-selling opportunities; failure to expand or diversify our balance sheet through programs or new opportunities; failure to successfully attract and retain new customers; product additions and addition of distribution channels (or entry into new markets) for existing products.

Technological and Operational Matters Technological or operational difficulties, loss or theft of information, counterparty failures and the possibility that deposit account losses (fraudulent checks, etc.) may increase; failure to keep pace with technological change.

Litigation Risks Results of litigation, including class action litigation concerning TCF’s lending or deposit activities including account servicing processes or fees or charges, or employment practices, and possible increases in financial obligations for certain litigation against Visa U.S.A. and potential reductions in card revenues resulting from such litigation or other litigation against Visa.

Accounting, Audit, Tax and Insurance Matters Changes in accounting standards or interpretations of existing standards; federal or state monetary, fiscal or tax policies, including adoption of state legislation that would increase state taxes; ineffective internal controls; adverse state or Federal tax assessments or findings in tax audits; lack of or inadequate insurance coverage for claims against TCF; potential for claims and legal action related to TCF’s fiduciary responsibilities.
 
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in thousands, except per-share data)
(Unaudited)
       
Three Months Ended June 30, Change
2012 2011 $ %
Interest income:
Loans and leases $ 208,766 $ 213,823 $ (5,057 ) (2.4 ) %
Securities available for sale 5,816 20,639 (14,823 ) (71.8 )
Investments and other 3,633   1,836   1,797   97.9
Total interest income 218,215   236,298   (18,083 ) (7.7 )
Interest expense:
Deposits 10,197 11,430 (1,233 ) (10.8 )
Borrowings 9,794   48,718   (38,924 ) (79.9 )
Total interest expense 19,991   60,148   (40,157 ) (66.8 )
Net interest income 198,224 176,150 22,074 12.5
Provision for credit losses 54,106   44,005   10,101   23.0

Net interest income after provision for credit losses
144,118   132,145   11,973   9.1
Non-interest income:
Fees and service charges 48,090 56,396 (8,306 ) (14.7 )
Card revenue 13,530 28,219 (14,689 ) (52.1 )
ATM revenue 6,276   7,091   (815 ) (11.5 )
Subtotal 67,896 91,706 (23,810 ) (26.0 )
Leasing and equipment finance 23,207 22,279 928 4.2
Gains on sales of auto loans 5,496 - 5,496 N.M.
Other 3,168   384   2,784   N.M.
Fees and other revenue 99,767 114,369 (14,602 ) (12.8 )
Gains (losses) on securities, net 13,116   (227 ) 13,343   N.M.
Total non-interest income 112,883   114,142   (1,259 ) (1.1 )
Non-interest expense:
Compensation and employee benefits 97,787 89,082 8,705 9.8
Occupancy and equipment 32,731 30,783 1,948 6.3
FDIC insurance 8,469 7,542 927 12.3
Advertising and marketing 5,404 3,479 1,925 55.3
Deposit account premiums 1,690 6,166 (4,476 ) (72.6 )
Other 36,956   37,067   (111 ) (.3 )
Subtotal 183,037 174,119 8,918 5.1
Loss on termination of debt - - - -
Foreclosed real estate and repossessed assets, net 12,059 12,617 (558 ) (4.4 )
Operating lease depreciation 6,417 7,859 (1,442 ) (18.3 )
Other credit costs, net 1,476   496   980   197.6
Total non-interest expense 202,989   195,091   7,898   4.0
Income before income tax expense 54,012 51,196 2,816 5.5
Income tax expense 20,542   19,086   1,456   7.6
Income after income tax expense 33,470 32,110 1,360 4.2
Income attributable to non-controlling interest 1,939   1,686   253   15.0
Net income available to common stockholders $ 31,531   $ 30,424   $ 1,107   3.6
Other comprehensive income:

Unrealized holding gains arising during the period on securities available for sale
19,868 31,084 (11,216 ) (36.1 )
Foreign currency hedge 268 (93 ) 361 N.M.
Foreign currency translation adjustment (324 ) 120 (444 ) N.M.

Recognized post retirement prior service cost and transition obligation
(7 ) 1 (8 ) N.M.
Income tax expense (7,375 ) (11,362 ) 3,987   (35.1 )
Total other comprehensive income 12,430   19,750   (7,320 ) (37.1 )
Comprehensive income $ 43,961   $ 50,174   $ (6,213 ) (12.4 )
Net income per common share:
Basic $ .20 $ .19 $ .01 5.3
Diluted .20 .19 .01 5.3
 
Dividends declared per common share $ .05 $ .05 $ - -
 

Average common and common equivalent shares outstanding (in thousands):
Basic 159,113 157,064 2,048 1.3
Diluted 159,539 157,463 2,077 1.3
 
N.M. Not meaningful.
 
 
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in thousands, except per-share data)
(Unaudited)
       
Six Months Ended June 30, Change
2012 2011 $ %
Interest income:
Loans and leases $ 414,750 $ 428,496 $ (13,746 ) (3.2 ) %
Securities available for sale 24,928 40,068 (15,140 ) (37.8 )
Investments and other 6,066   3,637   2,429   138.6  
Total interest income 445,744   472,201   (26,457 ) (5.6 )
Interest expense:
Deposits 19,258 23,434 (4,176 ) (17.8 )
Borrowings 48,089   98,577   (50,488 ) (51.2 )
Total interest expense 67,347   122,011   (54,664 ) (44.8 )
Net interest income 378,397 350,190 28,207 8.1
Provision for credit losses 102,648   89,279   13,369   15.0  

Net interest income after provision for credit losses
275,749   260,911   14,838   5.7  
Non-interest income:
Fees and service charges 89,946 109,909 (19,963 ) (18.2 )
Card revenue 26,737 54,803 (28,066 ) (51.2 )
ATM revenue 12,475   13,796   (1,321 ) (9.6 )
Subtotal 129,158 178,508 (49,350 ) (27.6 )
Leasing and equipment finance 46,074 49,029 (2,955 ) (6.0 )
Gains on sales of auto loans 7,746 - (40,114 ) (17.5 )
Other 5,523   1,078   7,746   100.0  
Fees and other revenue 188,501 228,615 (84,673 ) (37.0 )
Gains (losses) on securities, net 89,727   (227 ) -   -  
Total non-interest income 278,228   228,388   89,954   -  
Non-interest expense:
Compensation and employee benefits 193,754 178,439 - -
Occupancy and equipment 64,977 62,942 15,315 8.6
FDIC insurance 14,855 14,737 2,035 3.2
Advertising and marketing 8,021 6,639 (1,703 ) (18.2 )
Deposit account premiums 7,661 9,364 118 0.8
Other 74,252   71,633   1,382   20.8  
Subtotal 363,520 343,754 2,619 3.7
Loss on termination of debt 550,735 - (1,856 ) (61.0 )
Foreclosed real estate and repossessed assets, net 23,106 25,485 19,766 5.8
Operating lease depreciation 13,148 15,787 (2,379 ) (9.3 )
Other credit costs, net 1,188   3,044   (2,639 ) (16.7 )
Total non-interest expense 951,697   388,070   550,735   100.0  
(Loss) income before income tax expense (397,720 ) 101,229 563,627 145.2
Income tax (benefit) expense (149,702 ) 37,858   (498,949 ) -  
(Loss) income after income tax expense (248,018 ) 63,371 (187,560 ) -
Income attributable to non-controlling interest 3,345   2,675   (311,389 ) -  
Net (loss) income available to common stockholders $ (251,363 ) $ 60,696   $ 670   25.0  
Other comprehensive (loss) income:

Reclassification adjustment for securities gains included in net income
(76,967 ) - (76,967 ) N.M.

Unrealized holding gains arising during the period on securities available for sale
12,100 10,014 2,086 20.8
Foreign currency hedge (136 ) (600 ) 464 (77.3 )
Foreign currency translation adjustment 61 534 (473 ) (88.6 )

Recognized postretirement actuarial service cost and transition obligation
(14 ) 2 (16 ) N.M.
Income tax benefit (expense) 23,833   (3,458 ) 27,291   N.M.
Total other comprehensive (loss) income (41,123 ) 6,492   (47,615 ) N.M.
Comprehensive (loss) income $ (292,486 ) $ 67,188   $ (359,674 ) N.M.
Net income per common share:
Basic $ (1.58 ) $ .40 $ (1.98 ) N.M.
Diluted (1.58 ) .40 (1.98 ) N.M.
 
Dividends declared per common share $ .10 $ .10 $ - -
 

Average common and common equivalent shares outstanding (in thousands):
Basic 158,810 150,765 8,045 5.3
Diluted 158,810 151,136 7,673 5.1
 
N.M. Not meaningful.
 
 
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except per-share data)
(Unaudited)
       
At Jun. 30 At Dec. 31 Change
2012 2011 $ %
ASSETS
 
Cash and due from banks $ 865,257 $ 1,389,704 $ (524,447 ) (37.7 ) %
Investments 120,814 157,780 (36,966 ) (23.4 )
Securities available for sale 757,233 2,324,038 (1,566,805 ) (67.4 )
Loans and leases held for sale 9,664 14,321 (4,657 ) (32.5 )
Loans and leases:
Consumer real estate 6,811,784 6,895,291 (83,507 ) (1.2 )
Commercial 3,523,070 3,449,492 73,578 2.1
Leasing and equipment finance 3,151,105 3,142,259 8,846 .3
Inventory finance 1,457,263 624,700 832,563 N.M.
Auto finance 262,188 3,628 258,560 N.M.
Other 29,094   34,885   (5,791 ) (16.6 )
Total loans and leases 15,234,504 14,150,255 1,084,249 7.7
Allowance for loan and lease losses (274,161 ) (255,672 ) (18,489 ) 7.2
Net loans and leases 14,960,343 13,894,583 1,065,760 7.7
Premises and equipment, net 442,311 436,281 6,030 1.4
Goodwill 225,640 225,640 - -
Other assets 489,335   537,041   (47,706 ) (8.9 )
Total assets $ 17,870,597   $ 18,979,388   $ (1,108,791 ) (5.8 )
 
LIABILITIES AND EQUITY
 
Deposits:
Checking $ 4,701,917 $ 4,629,749 $ 72,168 1.6
Savings 6,227,133 5,855,263 371,870 6.4
Money market 880,545   651,377   229,168   35.2
Subtotal 11,809,595 11,136,389 673,206 6.0
Certificates of deposit 1,894,711   1,065,615   829,096   77.8
Total deposits 13,704,306   12,202,004   1,502,302   12.3
Short-term borrowings 7,487 6,416 1,071 16.7
Long-term borrowings 2,075,923   4,381,664   (2,305,741 ) (52.6 )
Total borrowings 2,083,410 4,388,080 (2,304,670 ) (52.5 )
Accrued expenses and other liabilities 326,973   510,677   (183,704 ) (36.0 )
Total liabilities 16,114,689   17,100,761   $ (986,072 ) (5.8 )
Equity:

Preferred stock, par value $.01 per share, 30,000,000 authorized; and 6,900 shares issued
166,721 - 166,721 N.M.

Common stock, par value $.01 per share, 280,000,000 shares authorized; 162,790,655 and 160,366,380 shares issued
1,628 1,604 24 1.5
Additional paid-in capital 738,437 715,247 23,190 3.2
Retained earnings, subject to certain restrictions 860,560 1,127,823 (267,263 ) (23.7 )

Accumulated other comprehensive income
15,703 56,826 (41,123 ) (72.4 )
Treasury stock at cost, 42,566 shares, and other (42,078 ) (33,367 ) (8,711 ) 26.1
Total TCF Financial Corp. stockholders' equity 1,740,971   1,868,133   (127,162 ) (6.8 )
Non-controlling interest in subsidiaries 14,937   10,494   4,443   42.3
Total equity 1,755,908   1,878,627   (122,719 ) (6.5 )
Total liabilities and equity $ 17,870,597   $ 18,979,388   (1,108,791 ) (5.8 )
 
N.M. Not meaningful.
 
 
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
SUMMARY OF CREDIT QUALITY DATA
(Dollars in thousands)
(Unaudited)
             
At At At At At Change from
Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, Jun. 30,
2012 2012 2011 2011 2011 2012 2011

Delinquency Data - Principal Balances (1)
60 days or more:
Consumer real estate
First mortgage lien $ 86,714 $ 88,092 $ 87,358 $ 78,241 $ 74,090 $ (1,378 ) $ 12,624
Junior lien 13,967   15,563   22,277   18,499   17,780   (1,596 ) (3,813 )
Total consumer real estate 100,681 103,655 109,635 96,740 91,870 (2,974 ) 8,811
Commercial 5,616 3,425 1,148 3,079 6,238 2,191 (622 )
Leasing and equipment finance 1,492 4,919 3,512 2,840 2,447 (3,427 ) (955 )
Inventory finance 206 185 160 306 145 21 61
Auto finance 62 2 - - - 60 62
Other 34   52   41   58   171   (18 ) (137 )
Subtotal 108,091 112,238 114,496 103,023 100,871 (4,147 ) 7,220
Acquired portfolios 1,483   2,198   3,140   1,870   2,993   (715 ) (1,510 )
Total delinquencies $ 109,574   $ 114,436   $ 117,636   $ 104,893   $ 103,864   $ (4,862 ) $ 5,710  
 

Delinquency Data - % of Portfolio (1)
60 days or more:
Consumer real estate
First mortgage lien 1.93 % 1.93 % 1.89 % 1.68 % 1.58 % - bps 35 bps
Junior lien .64 .74 1.04 .86 .82 (10 ) (18 )
Total consumer real estate 1.51 1.55 1.63 1.42 1.34 (4 ) 17
Commercial .17 .10 .03 .09 .18 7 (1 )
Leasing and equipment finance .05 .17 .13 .11 .09 (12 ) (4 )
Inventory finance .01 .01 .03 .04 .02 - (1 )
Auto finance .02 - - - - 2 2
Other .13 .20 .12 .18 .46 (7 ) (33 )
Subtotal .74 .77 .85 .75 .73 (3 ) 1
Acquired portfolios .58 .66 .84 .51 .70 (8 ) (12 )
Total delinquencies .73 .77 .85 .75 .73 (4 ) -
 
(1) Excludes non-accrual loans and leases.
At At At At At Change from
Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, Jun. 30,
2012 2012 2011 2011 2011 2012 2011

Non-Accrual Loans and Leases
Non-accrual loans and leases:
Consumer real estate
First mortgage lien $ 122,406 $ 125,895 129,114 130,671 129,837 $ (3,489 ) $ (7,431 )
Junior lien 18,272   23,409   20,257   18,223   21,069   (5,137 ) (2,797 )
Total consumer real estate 140,678 149,304 149,371 148,894 150,906 (8,626 ) (10,228 )
Commercial 150,215 135,677 127,519 133,260 140,407 14,538 9,808
Leasing and equipment finance 29,429 20,015 20,583 24,437 29,682 9,414 (253 )
Inventory finance 1,900 1,109 823 1,077 634 791 1,266
Other 2,204   2,838   15   4   32   (634 ) 2,172  
Total non-accrual loans and leases $ 324,426   $ 308,943   298,311   307,672   321,661   $ 15,483   $ 2,765  
 
Non-accrual loans and leases - rollforward
Balance, beginning of period $ 308,943 $ 298,311 $ 307,672 $ 321,661 $ 319,049 $ 10,632 $ (10,106 )
Additions 111,739 85,670 125,893 80,014 86,996 26,069 24,743
Charge-offs (28,228 ) (19,683 ) (38,263 ) (29,338 ) (22,401 ) (8,545 ) (5,827 )
Transfers to other assets (34,473 ) (25,603 ) (31,486 ) (21,654 ) (27,078 ) (8,870 ) (7,395 )
Return to accrual status (22,200 ) (21,243 ) (19,932 ) (20,272 ) (21,985 ) (957 ) (215 )
Payments received (12,261 ) (9,202 ) (45,238 ) (23,843 ) (14,383 ) (3,059 ) 2,122
Other, net 906   693   (335 ) 1,104   1,463   213   (557 )
Balance, end of period $ 324,426   $ 308,943   $ 298,311   $ 307,672   $ 321,661   $ 15,483   $ 2,765  
 
 
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
SUMMARY OF CREDIT QUALITY DATA, CONTINUED
(Dollars in thousands)
(Unaudited)
             
Change from
Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Jun 30,
2012 2012 2011 2011 2011 2012 2011

Other Real Estate Owned
Other real estate owned (1)
Consumer real estate $ 83,176 $ 84,996 $ 87,792 $ 88,206 $ 94,311 $ (1,820 ) $ (11,135 )
Commercial real estate 42,700   42,232   47,106   42,207   42,188   468   512  
Total other real estate owned $ 125,876   $ 127,228   $ 134,898   $ 130,413   $ 136,499   $ (1,352 ) $ (10,623 )
 
Other real estate owned - rollforward
Balance, beginning of period $ 127,228 $ 134,898 $ 130,413 $ 136,499 $ 142,154 $ (7,670 ) $ (14,926 )
Transferred in 33,739 25,624 33,864 24,939 27,649 8,115 6,090
Sales (29,448 ) (28,601 ) (25,909 ) (26,095 ) (28,759 ) (847 ) (689 )
Writedowns (6,237 ) (5,267 ) (5,719 ) (6,337 ) (6,741 ) (970 ) 504
Other, net 594   574   2,249   1,407   2,196   20   (1,602 )
Balance, end of period $ 125,876   $ 127,228   $ 134,898   $ 130,413   $ 136,499   $ (1,352 ) $ (10,623 )
 
Ending number of properties owned
Consumer real estate 426 466 465 456 488 (40 ) (62 )
Commercial real estate 32   32   33   33   26   -   6  
Total 458   498   498   489   514   (40 ) (56 )
 
(1) Includes properties owned and foreclosed properties subject to redemption.
 
 
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
SUMMARY OF CREDIT QUALITY DATA, CONTINUED
(Dollars in thousands)
(Unaudited)
               

Allowance for Loan and Lease Losses
At June 30, 2012 At March 31, 2012 At June 30, 2011 Change from
% of % of % of Mar. 31, Jun. 30,
Balance Portfolio Balance Portfolio Balance Portfolio 2012 2011
Consumer real estate $ 188,087 2.76 % $ 183,825 2.70 % $ 175,716 2.50 % 6 bps 26 bps
Commercial 50,699 1.44 50,444 1.45 50,783 1.41 (1 ) 3

Leasing and equipment finance
25,450 .81 21,537 .69 24,611 .81 12 -
Inventory finance 7,072 .49 7,556 .46 2,941 .32 3 17
Auto finance 1,951 .74 1,019 .73 - - 1 N.M.
Other 902 3.10 912 3.13 1,421 3.79 (3 ) (69 )
Total $ 274,161 1.80 $ 265,293 1.74 $ 255,472 1.75 6 5
 

Net Charge-Offs as a Percentage of Average Loans and Leases
Change from
Quarter Ended (1) Quarter Ended
Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, Jun. 30,
2012 2012 2011 2011 2011 2012 2011
Consumer real estate
First mortgage lien 1.58 % 1.66 % 1.94 % 2.29 % 1.78 % (8 ) bps (20 ) bps
Junior lien 3.07 3.03 2.63 2.99 2.75 4 32
Total consumer real estate 2.05 2.09 2.15 2.51 2.09 (4 ) (4 )
Commercial .97 .18 1.79 .57 .30 79 67
Leasing and equipment finance .15 .02 .46 .36 .45 13 (30 )
Inventory finance .06 .22 .03 .13 .13 (16 ) (7 )
Auto finance .14 .01 - - - 13 N.M.
Other N.M. N.M. N.M. N.M. N.M. N.M. N.M.
Total 1.18 1.06 1.63 1.48 1.19 12 (1 )
 
(1) Annualized.
N.M. Not Meaningful.
 
 
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Dollars in thousands)
(Unaudited)
               
Three Months Ended June 30,
2012 2011
Average Yields and Average Yields and
Balance Interest

Rates (1) (2)
Balance Interest

Rates (1) (2)
ASSETS:
Investments and other $ 430,084 $ 2,654 2.48 % $ 693,678 $ 1,836 1.06 %
U.S. Government sponsored entities:
Mortgage-backed securities, fixed-rate 733,796 5,813 3.17 2,104,294 20,614 3.92
U.S. Treasury securities - - - 135,613 20 .06
Other securities 225 3 4.14 353 5 5.68
Total securities available for sale (3) 734,021 5,816 3.17 2,240,260 20,639 3.69
Loans and leases held for sale 44,788 979 8.80 - - -
Loans and leases:
Consumer real estate:
Fixed-rate 4,365,670 63,432 5.84 4,655,198 70,615 6.08
Variable-rate 2,427,745 30,202 5.00 2,379,250 30,566 5.15
Total consumer real estate 6,793,415 93,634 5.54 7,034,448 101,181 5.77
Commercial:
Fixed- and adjustable-rate 2,730,085 37,242 5.49 2,877,903 41,442 5.78
Variable-rate 761,964 7,550 3.99 719,741 7,757 4.32
Total commercial 3,492,049 44,792 5.16 3,597,644 49,199 5.49
Leasing and equipment finance 3,145,914 43,109 5.48 3,068,550 46,184 6.02
Inventory finance 1,571,004 23,690 6.07 978,505 17,340 7.11
Auto finance 223,893 3,835 6.89 - - -
Other 17,647 336 7.66 19,463 437 9.01
Total loans and leases 15,243,922 209,396 5.52 14,698,610 214,341 5.85
Total interest-earning assets 16,452,815 218,845 5.34 17,632,548 236,816 5.38
Other assets 1,202,003 1,163,783
Total assets $ 17,654,818 $ 18,796,331
LIABILITIES AND EQUITY:
Non-interest bearing deposits:
Retail $ 1,316,767 $ 1,475,191
Small business 725,052 683,323
Commercial and custodial 310,321 278,808
Total non-interest bearing deposits 2,352,140 2,437,322
Interest-bearing deposits:
Checking 2,306,810 883 .15 2,152,646 1,221 .23
Savings 6,031,015 5,164 .34 5,608,824 7,279 .52
Money market 748,016 718 .39 648,862 731 .45
Subtotal 9,085,841 6,765 .30 8,410,332 9,231 .44
Certificates of deposit 1,608,653 3,432 .86 1,092,368 2,199 .82
Total interest-bearing deposits 10,694,494 10,197 .38 9,502,700 11,430 .48
Total deposits 13,046,634 10,197 .31 11,940,022 11,430 .38
Borrowings:
Short-term borrowings 705,888 535 .30 35,227 21 .24
Long-term borrowings 1,986,182 9,259 1.87 4,513,301 48,697 4.33
Total borrowings 2,692,070 9,794 1.46 4,548,528 48,718 4.29
Total interest-bearing liabilities 13,386,564 19,991 .60 14,051,228 60,148 1.72
Total deposits and borrowings 15,738,704 19,991 .51 16,488,550 60,148 1.46
Other liabilities 335,113 556,641
Total liabilities 16,073,817 17,045,191
Total TCF Financial Corp. stockholders' equity 1,563,158 1,739,523
Non-controlling interest in subsidiaries 17,843 11,617
Total equity 1,581,001 1,751,140
Total liabilities and equity $ 17,654,818 $ 18,796,331
Net interest income and margin $ 198,854 4.86 % $ 176,668 4.02 %
 
(1) Annualized.
(2) Interest and yields are presented on a fully tax equivalent basis.
(3) Average balances and yields of securities available for sale are based upon the historical amortized cost and excludes equity securities.
 
 
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Dollars in thousands)
(Unaudited)
               
Six Months Ended June 30,
2012 2011
Average Yields and Average Yields and
Balance Interest

Rates (1) (2)
Balance Interest

Rates (1) (2)
ASSETS:
Investments and other $ 587,802 $ 5,042 1.72 % $ 636,190 $ 3,637 1.15 %
U.S. Government sponsored entities:
Mortgage-backed securities, fixed-rate 1,410,407 24,924 3.53 2,033,159 40,025 3.94
U.S. Treasury securities - - - 91,685 33 .07
Other securities 227 4 4.13 370 10 5.44
Total securities available for sale (3) 1,410,634 24,928 3.53 2,125,214 40,068 3.77
Loans and leases held for sale 25,330 1,024 8.13 - - -
Loans and leases:
Consumer real estate:
Fixed-rate 4,404,410 129,584 5.92 4,694,690 142,421 6.12
Variable-rate 2,414,829 60,270 5.02 2,373,328 60,846 5.17
Total consumer real estate 6,819,239 189,854 5.60 7,068,018 203,267 5.80
Commercial:
Fixed- and adjustable-rate 2,733,967 75,452 5.55 2,895,151 83,484 5.81
Variable-rate 740,918 15,062 4.09 715,330 15,414 4.35
Total commercial 3,474,885 90,514 5.24 3,610,481 98,898 5.52
Leasing and equipment finance 3,137,122 87,109 5.55 3,093,969 93,741 6.06
Inventory finance 1,353,469 42,416 6.30 925,913 32,665 7.11
Auto finance 154,728 5,418 7.04 - - -
Other 17,612 705 8.04 20,603 913 8.94
Total loans and leases 14,957,055 416,016 5.59 14,718,984 429,484 5.87
Total interest-earning assets 16,980,821 447,010 5.29 17,480,388 473,189 5.45
Other assets 1,290,585 1,158,886
Total assets $ 18,271,406 $ 18,639,274
LIABILITIES AND EQUITY:
Non-interest bearing deposits:
Retail $ 1,338,539 $ 1,466,507
Small business 716,734 675,861
Commercial and custodial 307,427 285,125
Total non-interest bearing deposits 2,362,700 2,427,493
Interest-bearing deposits:
Checking 2,260,499 1,785 .16 2,128,673 2,577 .24
Savings 5,956,874 10,602 .36 5,517,084 14,776 .54
Money market 705,255 1,328 .38 661,114 1,639 .50
Subtotal 8,922,628 13,715 .31 8,306,871 18,992 .46
Certificates of deposit 1,372,164 5,543 .81 1,092,452 4,442 .82
Total interest-bearing deposits 10,294,792 19,258 .38 9,399,323 23,434 .50
Total deposits 12,657,492 19,258 .31 11,826,816 23,434 .40
Borrowings:
Short-term borrowings 571,019 865 .30 59,000 113 .39
Long-term borrowings 2,901,673 47,224 3.27 4,607,492 98,464 4.30
Total borrowings 3,472,692 48,089 2.78 4,666,492 98,577 4.25
Total interest-bearing liabilities 13,767,484 67,347 .98 14,065,815 122,011 1.75
Total deposits and borrowings 16,130,184 67,347 .84 16,493,308 122,011 1.49
Other liabilities 435,210 508,983
Total liabilities 16,565,394 17,002,291
Total TCF Financial Corp. stockholders' equity 1,690,337 1,627,238
Non-controlling interest in subsidiaries 15,675 9,745
Total equity 1,706,012 1,636,983
Total liabilities and equity $ 18,271,406 $ 18,639,274
Net interest income and margin $ 379,663 4.49 % $ 351,178 4.04 %
 
(1) Annualized.
(2) Interest and yields are presented on a fully tax equivalent basis.
(3) Average balances and yields of securities available for sale are based upon the historical amortized cost and excludes equity securities.
 
 
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME AND FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per-share data)
(Unaudited)
 
  At or For the Three Months Ended
Jun. 30,   Mar. 31,   Dec. 31,   Sep. 30,   Jun. 30,
2012     2012     2011     2011     2011
Interest income:
Loans and leases $ 208,766 $ 205,984 $ 205,415 $ 210,885 $ 213,823
Securities available for sale 5,816 19,112 22,559 22,561 20,639
Investments and other 3,633   2,433   2,333   1,997   1,836  
Total interest income 218,215   227,529   230,307   235,443   236,298  
Interest expense:
Deposits 10,197 9,061 9,791 11,883 11,430
Borrowings 9,794   38,295   47,082   47,496   48,718  
Total interest expense 19,991   47,356   56,873   59,379   60,148  
Net interest income 198,224 180,173 173,434 176,064 176,150
Provision for credit losses 54,106   48,542   59,249   52,315   44,005  

Net interest income after provision for credit losses
144,118   131,631   114,185   123,749   132,145  
Non-interest income:
Fees and service charges 48,090 41,856 51,002 58,452 56,396
Card revenue 13,530 13,207 13,643 27,701 28,219
ATM revenue 6,276   6,199   6,608   7,523   7,091  
Subtotal 67,896 61,262 71,253 93,676 91,706
Leasing and equipment finance 23,207 22,867 18,492 21,646 22,279
Gains on sales of auto loans 5,496 2,250 1,133 - -
Other 3,168   2,355   1,570   786   384  
Fees and other revenue 99,767 88,734 92,448 116,108 114,369
Gains (losses) on securities, net 13,116   76,611   5,842   1,648   (227 )
Total non-interest income 112,883   165,345   98,290   117,756   114,142  
Non-interest expense:
Compensation and employee benefits 97,787 95,967 82,595 87,758 89,082
Occupancy and equipment 32,731 32,246 32,366 31,129 30,783
FDIC insurance 8,469 6,386 6,647 7,363 7,542
Advertising and marketing 5,404 2,617 2,250 1,145 3,479
Deposit account premiums 1,690 5,971 6,482 7,045 6,166
Other 36,956   37,296   39,148   34,708   37,067  
Subtotal 183,037 180,483 169,488 169,148 174,119
Loss on termination of debt - 550,735 - - -
Foreclosed real estate and repossessed assets, net 12,059 11,047 11,323 12,430 12,617
Operating lease depreciation 6,417 6,731 6,811 7,409 7,859
Other credit costs, net 1,476   (288 ) (89 ) (139 ) 496  
Total non-interest expense 202,989   748,708   187,533   188,848   195,091  
Income (loss) before income tax expense 54,012 (451,732 ) 24,942 52,657 51,196
Income tax expense (benefit) 20,542   (170,244 ) 7,424   19,159   19,086  
Income (loss) after income tax expense 33,470 (281,488 ) 17,518 33,498 32,110
Income attributable to non-controlling interest 1,939   1,406   1,075   1,243   1,686  
Net income (loss) available to common stockholders $ 31,531   $ (282,894 ) $ 16,443   $ 32,255   $ 30,424  
Other comprehensive income (loss):

Reclassification adjustment for securities gains included in net income
- (76,967 ) (6,130 ) (1,915 ) -

Unrealized holding gains (losses) arising during the period on securities available for sale
19,868 (7,768 ) (4,334 ) 116,958 31,084
Foreign currency hedge 268 (404 ) (458 ) 1,319 (93 )
Foreign currency translation adjustment (324 ) 385 443 (1,410 ) 120

Recognized postretirement prior service cost and transition obligation
(7 ) (7 ) 305 1 1
Income tax (expense) benefit (7,375 ) 31,208   3,890   (42,643 ) (11,362 )
Total other comprehensive income (loss) 12,430   (53,553 ) (6,284 ) 72,310   19,750  
Comprehensive income (loss) $ 43,961   $ (336,447 ) $ 10,159   $ 104,565   $ 50,174  
Net income (loss) per common share:
Basic $ .20 $ (1.78 ) $ .10 $ .20 $ .19
Diluted .20 (1.78 ) .10 .20 .19
 
Dividends declared per common share $ .05 $ .05 $ .05 $ .05 $ .05
 

Financial Highlights:

Pre-tax pre-provision profit (1)
$ 108,118 $

70,578

 
$ 84,191 $ 104,972 $ 95,201

Return on average assets (2)
.76 % (5.96 ) % .37 % .71 % .68 %

Return on average common equity (2)
8.13 (63.38 ) 3.55 7.12 7.00

Net interest margin (2)
4.86 4.14 3.92 3.96 4.02
 

(1) Pre-tax pre-provision profit ("PTPP") is calculated as total revenues less non-interest expense. First quarter and year-to-date 2012 PTPP excludes the net loss of $473.8 million related to the balance sheet repositioning completed in the first quarter of 2012.

(2) Annualized.
 
 
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED QUARTERLY AVERAGE BALANCE SHEETS
(In thousands)
(Unaudited)
         
Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30,
2012 2012 2011 2011 2011
 
ASSETS
Cash and due from banks $   555,590 $   863,310 $   1,175,118 $   1,078,521 $   802,812
Investments 149,813 168,805 162,359 162,717 166,039
Mortgage-backed securities 736,251 2,021,574 2,374,026 2,357,865 2,153,016
U.S. Treasury securities - - - 10,761 135,613
Other securities   2,097     1,678     1,816     2,132     2,360  
Total securities available for sale 738,348 2,023,252 2,375,842 2,370,758 2,290,989
Loans and leases held for sale 44,788 5,872 4,822 - -
Loans and leases:
Consumer real estate:
Fixed-rate 4,365,670 4,443,148 4,528,165 4,592,855 4,655,198
Variable-rate   2,427,745     2,401,915     2,404,886     2,392,966     2,379,250  
Total consumer real estate 6,793,415 6,845,063 6,933,051 6,985,821 7,034,448
Commercial:
Fixed- and adjustable-rate 2,730,085 2,737,848 2,775,219 2,853,117 2,877,903
Variable-rate   761,964     719,872     701,441     711,081     719,741  
Total commercial 3,492,049 3,457,720 3,476,660 3,564,198 3,597,644
Leasing and equipment finance 3,145,914 3,128,329 3,043,329 3,066,208 3,068,550
Inventory finance 1,571,004 1,145,183 766,885 826,198 978,505
Auto finance 223,893 85,562 1,442 - -
Other   17,647     17,582     17,944     18,183     19,463  
Total loans and leases   15,243,922     14,679,439     14,239,311     14,460,608     14,698,610  
Allowance for loan and lease losses   (266,187 )   (257,895 )   (251,158 )   (253,547 )   (255,441 )
Net loans and leases 14,977,735 14,421,544 13,988,153 14,207,061 14,443,169
Premises and equipment, net 438,438 435,412 436,715 439,288 442,529
Goodwill 225,640 225,640 179,070 152,599 152,599
Other assets   524,466     753,873     598,367     582,290     498,194  
Total assets $   17,654,818   $   18,897,708   $   18,920,446   $   18,993,234   $   18,796,331  
 
LIABILITIES AND EQUITY
Non-interest-bearing deposits:
Retail $ 1,316,767 $ 1,359,781 $ 1,330,462 $ 1,396,857 $ 1,475,191
Small business 725,052 708,416 738,867 704,272 683,323
Commercial and custodial   310,321     305,064     303,216     294,253     278,808  
Total non-interest bearing deposits 2,352,140 2,373,261 2,372,545 2,395,382 2,437,322
Interest-bearing deposits:
Checking 2,306,810 2,214,192 2,096,340 2,103,184 2,152,646
Savings 6,031,015 5,882,730 5,859,147 5,789,188 5,608,824
Money market   748,016     662,493     662,024     650,598     648,862  
Subtotal 9,085,841 8,759,415 8,617,511 8,542,970 8,410,332
Certificates of deposit   1,608,653     1,135,673     1,112,735     1,114,934     1,092,368  
Total interest-bearing deposits   10,694,494     9,895,088     9,730,246     9,657,904     9,502,700  
Total deposits   13,046,634     12,268,349     12,102,791     12,053,286     11,940,022  
Borrowings:
Short-term borrowings 705,888 436,171 37,081 43,073 35,227
Long-term borrowings   1,986,182     3,817,165     4,387,036     4,403,724     4,513,301  
Total borrowings 2,692,070 4,253,336 4,424,117 4,446,797 4,548,528
Accrued expenses and other liabilities   335,113     577,142     538,148     672,944     556,641  
Total liabilities   16,073,817     17,098,827     17,065,056     17,173,027     17,045,191  
Equity:
Preferred stock 10,993 - - - -
Common stock 1,625 1,617 1,602 1,598 1,594
Additional paid-in capital 738,089 727,596 711,914 705,366 698,683
Retained earnings, subject to certain restrictions 846,349 1,052,632 1,121,866 1,105,322 1,081,101
Accumulated other comprehensive income (loss) 11,601 46,029 48,618 34,073 (8,819 )
Treasury stock at cost and other   (45,499 )   (42,499 )   (33,032 )   (33,008 )   (33,036 )
Total TCF Financial Corp. stockholders equity 1,563,158 1,785,375 1,850,968 1,813,351 1,739,523
Non-controlling interest in subsidiaries   17,843     13,506     4,422     6,856     11,617  
Total equity   1,581,001     1,798,881     1,855,390     1,820,207     1,751,140  
Total liabilities and equity $

 
17,654,818   $

 
18,897,708   $

 
18,920,446   $

 
18,993,234   $

 
18,796,331  
 
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TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED QUARTERLY YIELDS AND RATES (1) (2)
(Unaudited)
 
Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30,
2012 2012 2011 2011 2011