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Press Release

TCF Reports Quarterly Net Income of $35.1 Million, or 22 Cents Per Share and Annual Net Income of $132.6 Million, or 82 Cents Per Share

Company Release - 1/29/2014 8:00 AM ET

WAYZATA, Minn.--(BUSINESS WIRE)--

TCF Financial Corporation (NYSE:TCB):

2013 HIGHLIGHTS

  • Net interest margin of 4.68 percent, up 3 basis points from 2012
  • Core revenue(1) of $1.2 billion, up 3.2 percent from 2012
  • Provision for credit losses of $118.4 million, down 52.2 percent from 2012
  • Non-accrual loans and leases of $277 million, down 27 percent from 2012
  • Loan and lease originations increased $1.3 billion, or 12.4 percent, from 2012
  • Average deposits increased $1 billion, or 8 percent, from 2012

FOURTH QUARTER HIGHLIGHTS

  • Earnings per share of 22 cents, up 7 cents from the fourth quarter of 2012
  • Core revenue(1) of $306.2 million, up 1.5 percent from the fourth quarter of 2012
  • Provision for credit losses of $22.8 million, down 53 percent from the fourth quarter of 2012
  • Loan and lease originations increased $213.4 million, or 7.4 percent, from the fourth quarter of 2012
  • Average deposits increased $603.5 million, or 4.4 percent, from the fourth quarter of 2012
  • Announced that the OCC has lifted the regulatory order related to TCF’s BSA compliance program
  • Branch realignment after-tax charge of $5.6 million, or 3 cents per share, related to 46 branches to be consolidated in the first quarter of 2014
                                             
Summary of Financial Results                                           Table 1
(Dollars in thousands, except per-share data)     Percent Change
    4Q     3Q     4Q

 

4Q13 vs

  4Q13 vs     YTD     YTD Percent
2013       2013         2012      

3Q13

      4Q12       2013        

2012 (2)

Change
Net income (loss) $ 35,148 $ 37,948 $ 23,551   (7.4 ) %   49.2 % $ 132,603 $ (218,490 )     N.M. %
Net interest income 201,862 199,627 201,063 1.1 .4 802,624 780,019 2.9

Diluted earnings (loss) per common share

.22 .23 .15 (4.3 ) 46.7 .82 (1.37 ) N.M.
 

Financial Ratios (3)

Pre-tax pre-provision return on average assets (4)

1.90 % 2.04 % 1.94 % 1.98 % (.51 ) %
Return on average assets .90 .97 .63 .87 (1.14 )
Return on average common equity 8.39 9.28 5.93 8.12 (13.33 )
Net interest margin 4.67 4.62 4.79 4.68 4.65

Net charge-offs as a percentage of average loans and leases

.76 .71 1.18 .81 1.54
 
N.M. Not Meaningful                                                                      
(1)   Core revenue is calculated as total revenue less gains (losses) on sales of securities of $1 million and $(528) thousand for the three months ended December 31, 2013 and 2012, respectively, and $964 thousand and $102.2 million for the year ended December 31, 2013 and 2012, respectively.
(2) Includes a net, after-tax charge of $295.8 million, or $1.87 per common share, related to the balance sheet repositioning.
(3) Annualized.
(4) Pre-tax pre-provision profit (''PTPP'') is calculated as total revenues less non-interest expense.
 

TCF Financial Corporation (“TCF” or the “Company”) (NYSE: TCB) today reported net income of $35.1 million for the fourth quarter of 2013, compared with net income of $23.6 million for the fourth quarter of 2012, and net income of $37.9 million for the third quarter of 2013. Diluted earnings per common share was 22 cents for the fourth quarter of 2013 (inclusive of a net after-tax charge of $5.6 million, or 3 cents per common share, related to the realignment of 46 branches), compared with 15 cents for the fourth quarter of 2012, and 23 cents for the third quarter of 2013.

TCF reported net income of $132.6 million for the year ended December 31, 2013, compared with a net loss of $218.5 million for the same period in 2012 (inclusive of a net after-tax charge of $295.8 million, or $1.87 per common share, related to a balance sheet repositioning involving certain investments and borrowings in the first quarter of 2012). Diluted earnings per common share was 82 cents for the year ended December 31, 2013, compared with a diluted loss per common share of $1.37 for the same period in 2012 (or earnings per common share of 49 cents when excluding the balance sheet repositioning charge).

Chairman’s Statement

“TCF’s focus in 2013 was to execute on the numerous investments we made in 2012,” said William A. Cooper, Chairman and Chief Executive Officer. “Earnings per share increased 67 percent to 82 cents in 2013 from 49 cents in 2012, excluding the balance sheet repositioning charge, reflecting the positive impact that the balance sheet repositioning had on the organization. Throughout the year, we have been successful on several initiatives as we maintained our strong pre-tax pre-provision return on average assets and significantly improved our overall credit quality. At 4.68 percent, TCF has one of the highest net interest margins in the industry. Loan and lease growth and strong origination volume and diversity continue to be a positive part of the TCF story while significant changes made to the branch system will pave the way for future customer experience enhancements in 2014.

“TCF is a much different looking bank than it was two years ago and we believe its strength and diversity will serve our customers and shareholders well in today’s banking environment. The investments in 2012 and the execution in 2013 have positioned TCF to capitalize on opportunities in 2014 and beyond. I am very excited about what lies ahead.”

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