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TCF Reports Quarterly Net Income of $24.0 Million, or 12 Cents Per Share and Annual Net Income of $174.2 Million, or 94 Cents Per Share

Company Release - 1/29/2015 8:00 AM ET

WAYZATA, Minn.--(BUSINESS WIRE)-- 2014 HIGHLIGHTS

  • Revenue of $1.2 billion, up 3.5 percent from 2013
  • Loan and lease originations of $13.5 billion, up 12.2 percent from 2013
  • Average deposits of $14.9 billion, up 5.2 percent from 2013
  • Provision for credit losses of $95.7 million, down 19.1 percent from 2013
  • Non-accrual loans and leases of $216.7 million, down 21.8 percent from December 31, 2013
  • Return on average assets of 0.96 percent, up 9 basis points from 2013
  • Return on average tangible common equity (1) of 10.08 percent, up 50 basis points from 2013

FOURTH QUARTER HIGHLIGHTS

  • Revenue of $313.8 million, up 2.1 percent from the fourth quarter of 2013
  • Loan and lease originations of $3.5 billion, up 12.6 percent from the fourth quarter of 2013
  • Average deposits of $15.3 billion, up 6.6 percent from the fourth quarter of 2013
  • Reduced balance sheet credit risk by selling $405.9 million of consumer TDR loans
  • Sale of $405.9 million of consumer TDR loans resulted in a $23.1 million pre-tax charge, or 9 cents per share
  • Additional provision for credit losses of $21.8 million, or 8 cents per share
                                           
Summary of Financial Results                                   Table 1
(Dollars in thousands, except per-share data)     Percent Change      
 

4Q

  3Q4Q

 4Q14 vs 

 

 4Q14 vs 

YTDYTDPercent

2014

   

2014

   

2013

    3Q14   4Q13   2014     2013     Change
Net income attributable to TCF

23,988

52,317 $ 39,995 (54.1 )% (40.0 )% $ 174,187 $ 151,668 14.8 %
Net interest income

 204,074

 204,180

201,862 (0.1 ) 1.1 815,629 802,624 1.6
Diluted earnings per common share 0.12 0.29 0.22 (58.6 ) (45.5 ) 0.94 0.82 14.6
 

Financial Ratios(2)

Pre-tax pre-provision return on average assets (3) 1.91 % 2.13 % 1.90 % 2.00 % 1.98 %
Return on average assets 0.53 1.15 0.90 0.96 0.87
Return on average common equity 4.15 10.50 8.39 8.71 8.12
Return on average tangible common equity (1) 4.80 12.11 9.83 10.08 9.58
Net interest margin 4.49 4.60 4.67 4.61 4.68
Net charge-offs as a percentage of average loans and leases 0.40 0.66 0.76 0.49 0.81
 
(1) See "Reconciliation of GAAP to Non-GAAP Financial Measures" table.
(2) Annualized.
(3) Pre-tax pre-provision profit is calculated as total revenues less non-interest expense.
 

TCF Financial Corporation ("TCF" or the "Company") (NYSE:TCB) today reported net income of $24.0 million for the fourth quarter of 2014, compared with net income of $40.0 million for the fourth quarter of 2013, and net income of $52.3 million for the third quarter of 2014. Diluted earnings per common share was 12 cents for the fourth quarter of 2014, compared with 22 cents for the fourth quarter of 2013, and 29 cents for the third quarter of 2014.

TCF reported net income of $174.2 million for the year ended December 31, 2014, compared with net income of $151.7 million for the same period in 2013. Diluted earnings per common share was 94 cents for the year ended December 31, 2014, compared with 82 cents for the same period in 2013.

Chairman's Statement

"TCF completed a strong year as earnings per share increased 14.6 percent from 82 cents in 2013 to 94 cents in 2014," said William A. Cooper, Chairman and Chief Executive Officer. "This earnings per share growth in 2014 occurred despite a pre-tax charge of 17 cents related to the sale of consumer troubled debt restructurings and additional provision for credit losses during the fourth quarter. This sale allowed us to reduce balance sheet credit risk and provide further diversification of our loan and lease portfolio by reducing the high concentration of legacy consumer real estate loans. I believe that the clean-up of this portfolio gives us a fresh start and will significantly reduce credit and operating costs as we move into 2015.

"Overall, 2014 was highlighted by strong loan and lease originations, a focus on diversification of both revenue and earning assets, one of the highest net interest margins in the industry and continued strong credit quality particularly in our national lending businesses. While I am pleased with where we stand today, our focus is on the future and I believe we have the team in place to fulfill our goals moving forward."

     
Revenue
                                                   
Total Revenue                                         Table 2
          Percent Change
(Dollars in thousands)

4Q

3Q

4Q

 4Q14 vs 

 

 4Q14 vs 

YTDYTDPercent

2014

     

2014

   

2013

    3Q14   4Q13   2014     2013     Change
Net interest income $ 204,074       $ 204,180     $ 201,862   (0.1 )% 1.1 % $ 815,629     $ 802,624   1.6 %
Fees and other revenue:
Fees and service charges 39,477 40,255 43,254 (1.9 ) (8.7 ) 154,386 166,606 (7.3 )
Card revenue 12,830 12,994 13,066 (1.3 ) (1.8 ) 51,323 51,920 (1.1 )
ATM revenue 5,249       5,863     5,382   (10.5 ) (2.5 ) 22,225     22,656   (1.9 )
Total banking fees 57,556 59,112 61,702 (2.6 ) (6.7 ) 227,934 241,182 (5.5 )
Gains on sales of auto loans, net 12,962 14,863 7,278 (12.8 ) 78.1 43,565 29,699 46.7
Gains on sales of consumer real estate loans, net 6,175 8,762 5,345 (29.5 ) 15.5 34,794 21,692 60.4
Servicing fee income 6,365       5,880     3,903   8.2 63.1 21,444     13,406   60.0
Subtotal 25,502 29,505 16,526 (13.6 ) 54.3 99,803 64,797 54.0
Leasing and equipment finance 24,367 24,383 23,328 (0.1 ) 4.5 93,799 90,919 3.2
Other 2,363       3,170     2,812   (25.5 ) (16.0 ) 10,704     6,196   72.8
Total fees and other revenue 109,788       116,170     104,368   (5.5 ) 5.2 432,240     403,094   7.2
Gains (losses) on securities, net (20 )     (94 )   1,044   78.7 N.M. 1,027     964   6.5
Total non-interest income 109,768  

 

  116,076     105,412   (5.4 ) 4.1 433,267     404,058   7.2
Total revenue $ 313,842       $ 320,256     $ 307,274   (2.0 ) 2.1 $ 1,248,896     $ 1,206,682   3.5
 
Net interest margin (1) 4.49 % 4.60 % 4.67 % 4.61 % 4.68 %
Total non-interest income as a % of total revenue 35.0 36.2 34.3 34.7 33.5
 
N.M. Not Meaningful.
(1) Annualized.
 

Net Interest Income

  • Net interest income for the fourth quarter of 2014 increased $2.2 million, or 1.1 percent, compared with the fourth quarter of 2013. The increase was primarily driven by higher average loan and lease balances in the auto finance, leasing and equipment finance and inventory finance businesses, partially offset by lower average consumer real estate loan balances due to run-off, as well as continued margin reduction.
  • Net interest margin in the fourth quarter of 2014 was 4.49 percent, compared with 4.67 percent in the fourth quarter of 2013 and 4.60 percent in the third quarter of 2014. The decreases from both periods were primarily due to continued margin reduction resulting from the competitive low interest rate environment. The yield on inventory finance loans was 5.56 percent in the fourth quarter of 2014, compared with 5.85 percent in the fourth quarter of 2013 and 6.18 percent in the third quarter of 2014. The decreases from both periods were primarily attributable to a one-time impact from a significant program extension.

Non-interest Income

  • Fees and service charges in the fourth quarter of 2014 were $39.5 million, down $3.8 million, or 8.7 percent, from the fourth quarter of 2013, and down $0.8 million, or 1.9 percent, from the third quarter of 2014. The decreases from both periods were driven primarily by customer behavior changes, as well as higher average checking account balances per customer.
  • TCF sold $367.0 million, $236.0 million and $484.4 million of auto loans during the fourth quarters of 2014 and 2013, and the third quarter of 2014, respectively, resulting in net gains in the same respective periods. Included in auto loans sold for the third quarter of 2014 is $256.3 million related to the execution of the Company's inaugural auto loan securitization, which took place in July 2014.
  • TCF sold $613.7 million, $202.3 million and $233.6 million of consumer real estate loans during the fourth quarters of 2014 and 2013, and the third quarter of 2014, respectively, resulting in net gains in the same respective periods. Included in consumer real estate loans sold (servicing released) for the fourth quarter of 2014 is $405.9 million related to the portfolio sale of consumer real estate loans, primarily troubled debt restructuring ("TDR") loans. These loans were transferred to held for sale during the quarter, net of a previously established provision for credit losses of $77.0 million, written down to fair value through an $18.3 million charge to provision for credit losses and sold at a loss of $4.8 million.
  • Servicing fee income was $6.4 million on $3.4 billion of period-end loans and leases serviced for others during the fourth quarter of 2014, compared to $3.9 million on $2.0 billion of period-end loans and leases serviced for others during the fourth quarter of 2013, and $5.9 million on $3.1 billion of period-end loans and leases serviced for others during the third quarter of 2014.
 
Loans and Leases
                                                 
Period-End and Average Loans and Leases   Table 3
              Percent Change          
(Dollars in thousands)

4Q 

3Q 

4Q 

 4Q14 vs 

 

 4Q14 vs 

YTDYTDPercent

2014 

   

2014 

   

2013 

    3Q14   4Q13   2014     2013     Change
Period-End:
Consumer real estate:
First mortgage lien $ 3,139,152 $ 3,444,581 $ 3,766,421 (8.9 )% (16.7 )%
Junior lien 2,543,212     2,526,486     2,572,905   0.7 (1.2 )
Total consumer real estate 5,682,364 5,971,067 6,339,326 (4.8 ) (10.4 )
Commercial 3,157,665 3,159,766 3,148,352 (0.1 ) 0.3
Leasing and equipment finance 3,745,322 3,632,793 3,428,755 3.1 9.2
Inventory finance 1,877,090 1,836,538 1,664,377 2.2 12.8
Auto finance 1,915,061 1,749,411 1,239,386 9.5 54.5
Other 24,144     24,003     26,743   0.6 (9.7 )
Total $ 16,401,646     $ 16,373,578     $ 15,846,939   0.2 3.5
 
Average:
Consumer real estate:
First mortgage lien $ 3,447,447 $ 3,498,068 $ 3,814,365 (1.4 )% (9.6 )% $ 3,567,088 $ 3,995,727 (10.7 )%
Junior lien 2,611,709     2,607,811     2,597,817   0.1 0.5 2,581,464     2,454,223   5.2
Total consumer real estate 6,059,156 6,105,879 6,412,182 (0.8 ) (5.5 ) 6,148,552 6,449,950 (4.7 )
Commercial 3,143,614 3,144,135 3,088,524 1.8 3,135,367 3,262,746 (3.9 )
Leasing and equipment finance 3,611,557 3,575,698 3,342,182 1.0 8.1 3,531,256 3,260,425 8.3
Inventory finance 1,891,504 1,806,271 1,734,286 4.7 9.1 1,888,080 1,723,253 9.6
Auto finance 1,817,024 1,603,392 1,157,586 13.3 57.0 1,567,904 907,571 72.8
Other 11,396     11,599     13,369   (1.8 ) (14.8 ) 12,071     13,088   (7.8 )
Total $ 16,534,251     $ 16,246,974     $ 15,748,129   1.8 5.0 $ 16,283,230     $ 15,617,033   4.3
                                                           
  • Period-end loans and leases were $16.4 billion at December 31, 2014, an increase of $0.6 billion, or 3.5 percent, compared with December 31, 2013 and an increase of $28.1 million, or 0.2 percent, compared with September 30, 2014. Average loans and leases were $16.5 billion for the fourth quarter of 2014, an increase of $0.8 billion, or 5.0 percent, compared with the fourth quarter of 2013 and an increase of $0.3 billion, or 1.8 percent, compared with the third quarter of 2014.

    The increases in period-end loans and leases and average loans and leases from both periods were primarily due to increases in auto finance, leasing and equipment finance and inventory finance, partially offset by a decrease in consumer real estate loans as a result of the portfolio loan sale in December 2014. Excluding the $405.9 million TDR loan sale, period-end loans and leases and average loans and leases increased 6.1 percent and 5.2 percent, respectively, compared with December 31, 2013, and increased 2.7 percent and 2.0 percent, respectively, compared with September 30, 2014. The auto finance business continues to expand its number of active dealers and sales force, driving increased originations and higher period-end and average loan balances in spite of increasing loan sales. Leasing and equipment finance and inventory finance balances increased from both periods due to originations exceeding runoff.
  • Loan and lease originations were $3.5 billion for the fourth quarter of 2014, an increase of $0.4 billion, or 12.6 percent, compared with the fourth quarter of 2013 and basically flat, compared with the third quarter of 2014. The increase from the fourth quarter of 2013 was primarily due to the continued growth in auto finance, as well as an increase in inventory finance and consumer real estate originations.
  • Period-end and average loan and lease balances were reduced by $613.7 million of consumer real estate loan sales and $367.0 million of auto finance loan sales during the fourth quarter of 2014.
               

Credit Quality

                                 
Credit Trends                               Table 4
Percent Change
(Dollars in thousands) 4Q3Q2Q1Q4Q

 4Q14 vs 

 4Q14 vs 

2014   2014   2014   2014   2013     3Q14   4Q13
Non-accrual loans and leases and other real estate owned $ 282,384 $ 342,725 $ 325,374 $ 330,127 $ 345,896 (17.6 )% (18.4 )%
Over 60-day delinquencies (1) 22,348 27,019 28,094 30,638 30,194 (17.3 ) (26.0 )
Net charge-offs 16,623 26,937 18,355 17,416 30,096 (38.3 ) (44.8 )
Provision for credit losses 55,597 15,739 9,909 14,492 22,792

N.M. 

N.M. 

 
N.M. Not Meaningful.
(1) Excludes acquired portfolios and non-accrual loans and leases.
 
  • Non-accrual loans and leases and other real estate owned totaled $282.4 million at December 31, 2014, a decrease of $63.5 million, or 18.4 percent, from December 31, 2013, and a decrease of $60.3 million, or 17.6 percent, from September 30, 2014. The decrease from December 31, 2013 was primarily due to the $405.9 million TDR loan sale, which included $40.1 million of non-accrual TDR loans, and improving credit quality trends and continued efforts to actively work out problem loans in the commercial portfolio. The decrease from September 30, 2014 was also driven primarily by the portfolio loan sale, as well as the payoff of a large loan in the commercial portfolio.
  • The over 60-day delinquency rate, excluding acquired portfolios and non-accrual loans and leases, was 0.14 percent at December 31, 2014, down from 0.19 percent at December 31, 2013, and down from 0.17 percent at September 30, 2014. The decrease from December 31, 2013 was primarily a result of the stabilization of the consumer real estate portfolio as economic conditions improved in our markets. The decrease from September 30, 2014 was primarily the result of improving credit quality in the commercial portfolio.
  • Net charge-offs were $16.6 million for the fourth quarter of 2014, a decrease of $13.5 million, or 44.8 percent, from the fourth quarter of 2013, and a decrease of $10.3 million, or 38.3 percent, from the third quarter of 2014. The decrease from the fourth quarter of 2013 was primarily due to improved credit quality in both the commercial and consumer real estate loan portfolios. The decrease from the third quarter of 2014 was primarily due to the improved credit quality in the consumer real estate loan portfolio.
  • Provision for credit losses was $55.6 million for the fourth quarter of 2014, an increase of $32.8 million from the fourth quarter of 2013, and an increase of $39.9 million from the third quarter of 2014. The increases from both periods were primarily a result of the portfolio loan sale which increased the provision by $18.3 million. Additionally, the TDR loan sale provided market information that was utilized during the quarter to evaluate the adequacy of the allowance for loan and lease losses related to the remaining portfolio and along with our continued conservative approach on credit, resulted in additional provision of $21.8 million.
 

Deposits

               
Average Deposits       Table 5
        Percent Change    
(Dollars in thousands) 4Q3Q4Q

 4Q14 vs 

 

 4Q14 vs 

YTDYTDPercent
2014     2014     2013     3Q14   4Q13   2014     2013     Change
 
Checking $ 5,109,465 $ 5,077,753 $ 4,904,125 0.6 % 4.2 % $ 5,075,759 $ 4,851,952 4.6 %
Savings 5,289,435 5,524,409 6,217,662 (4.3 ) (14.9 ) 5,713,389 6,168,768 (7.4 )
Money market 1,869,350     1,527,820     845,562   22.4 121.1 1,312,483     818,814   60.3
Subtotal 12,268,250 12,129,982 11,967,349 1.1 2.5 12,101,631 11,839,534 2.2
Certificates of deposit 3,041,722     3,028,259     2,392,896   0.4 27.1 2,840,922     2,369,992   19.9
Total average deposits $ 15,309,972     $ 15,158,241     $ 14,360,245   1.0 6.6 $ 14,942,553     $ 14,209,526   5.2
 
Average interest rate on deposits (1) 0.28 % 0.28 % 0.23 % 0.26 % 0.26 %
 
(1) Annualized.
 
  • Total average deposits for the fourth quarter of 2014 increased $0.9 billion, or 6.6 percent, from the fourth quarter of 2013 and increased $0.2 billion, or 1.0 percent, from the third quarter of 2014. The increases from both periods were primarily due to special campaigns for money market accounts and certificates of deposit, partially offset by a reduction in savings account balances.
  • The average interest rate on deposits for the fourth quarter of 2014 was 0.28 percent, up 5 basis points from the fourth quarter of 2013, and flat compared to the third quarter of 2014. The increase from the fourth quarter of 2013 was primarily due to promotions for money market accounts in select markets during the quarter.
                   
Non-interest Expense
                                                 
Non-interest Expense                                       Table 6
Percent Change
(Dollars in thousands) 4Q3Q4Q

 4Q14 vs 

 4Q14 vs 

YTDYTDPercent
2014     2014     2013     3Q14   4Q13   2014     2013     Change
 
Compensation and employee benefits $ 115,796 $ 112,393 $ 108,589 3.0

%

6.6 % $ 452,942 $ 429,188 5.5 %
Occupancy and equipment 35,747 34,121 35,504 4.8 0.7 139,023 134,694 3.2
FDIC insurance 2,643 7,292 7,892 (63.8 ) (66.5 ) 25,123 32,066 (21.7 )
Operating lease depreciation 6,878 7,434 6,009 (7.5 ) 14.5 27,152 24,500 10.8
Advertising and marketing 5,146 5,656 3,754 (9.0 ) 37.1 22,943 21,477 6.8
Other 48,063     47,888     44,162   0.4 8.8 179,904     167,777   7.2
Subtotal 214,273 214,784 205,910 (0.2 ) 4.1 847,087 809,702 4.6
 
Branch realignment 8,869 (100.0 ) 8,869 (100.0 )
Foreclosed real estate and repossessed assets, net 7,441 5,315 6,066 40.0 22.7 24,567 27,950 (12.1 )
Other credit costs, net 44     (411 )   (376 )

N.M. 

N.M. 

123     (1,252 )

N.M. 

Total non-interest expense $ 221,758     $ 219,688     $ 220,469   0.9 0.6 $ 871,777     $ 845,269   3.1
 
N.M. Not Meaningful.
 
  • Compensation and employee benefits expense increased $7.2 million, or 6.6 percent, from the fourth quarter of 2013 and increased $3.4 million, or 3.0 percent, from the third quarter of 2014. The increases from both periods were primarily due to the annual pension plan valuation adjustment resulting from a reduction to the discount rate and a lower actual return on plan assets. The increase from the fourth quarter of 2013 was also impacted by increased staff levels to support the growth of auto finance and risk management.
  • FDIC insurance expense decreased $5.2 million, or 66.5 percent, from the fourth quarter of 2013 and decreased $4.6 million, or 63.8 percent, from the third quarter of 2014. The decreases from both periods were due to a lower assessment rate primarily as a result of the sale of the TDR loans, overall improving credit metrics and a non-recurring assessment rate catch-up.
  • Foreclosed real estate and repossessed assets, net expense increased $1.4 million, or 22.7 percent, from the fourth quarter of 2013 and increased $2.1 million, or 40.0 percent, compared to the third quarter of 2014. The increases from both periods were primarily due to an increase in valuation reductions for consumer real estate and commercial properties, partially offset by increased gains on the sales of foreclosed commercial properties.
       

Capital

                       
Capital Information               Table 7
At period end
(Dollars in thousands, except per-share data) 4Q 20144Q 2013
Total equity $ 2,135,364 $ 1,964,759
Book value per common share $ 11.10 $ 10.23
Tangible book value per common share (1) $ 9.72 $ 8.83
Tangible common equity to tangible assets (1) 8.50 % 8.03 %
Capital accumulation rate (2) 10.36 % 9.72 %
Tier 1 risk-based capital (3) $ 1,919,887 11.76 % $ 1,763,682 11.41 %
Total risk-based capital (3) 2,209,999 13.54 2,107,981 13.64
Tier 1 leverage capital (3) 1,919,887 10.07 1,763,682 9.71
Tier 1 common capital (1) 1,642,932 10.07 1,488,651 9.63
 
(1) See "Reconciliation of GAAP to Non-GAAP Financial Measures" table.
(2) Calculated as the change in year-to-date Tier 1 common capital as a percentage of prior year end Tier 1 common capital.
(3) The Company's capital ratios continue to be in excess of "well-capitalized" regulatory benchmarks.
 
  • Maintained strong capital ratios as the Company accumulates capital through earnings.
  • On January 23, 2015, TCF's Board of Directors declared a regular quarterly cash dividend of 5 cents per common share, payable on March 2, 2015, to stockholders of record at the close of business on February 13, 2015. TCF also declared dividends on the 7.50% Series A and 6.45% Series B Non-Cumulative Perpetual Preferred Stock, both payable on March 2, 2015, to stockholders of record at the close of business on February 13, 2015.

Webcast Information

A live webcast of TCF's conference call to discuss the fourth quarter earnings will be hosted at TCF's website, http://ir.tcfbank.com, on January 29, 2015 at 9:00 a.m. CST. A slide presentation for the call will be available on the website prior to the call. 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. As of December 31, 2014, TCF had $19.4 billion in total assets and 379 branches in Illinois, Minnesota, Michigan, Colorado, Wisconsin, Arizona, South Dakota and Indiana, providing retail and commercial banking services. TCF, through its subsidiaries, also conducts commercial leasing, equipment finance, and auto finance business in all 50 states and commercial inventory finance business in the U.S. and Canada. 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 herein. 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, 2013, 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; Competitive Conditions; Credit and Other Risks.Deterioration in general economic and banking industry conditions, including those arising from government shutdowns, defaults, anticipated defaults or rating agency downgrades of sovereign debt (including debt of the U.S.), or increases in unemployment in TCF's primary banking markets; adverse economic, business and competitive developments such as shrinking interest margins, reduced demand for financial services and loan and lease products, deposit outflows, increased deposit costs due to competition for deposit growth and evolving payment system developments, deposit account attrition or an inability to increase the number of deposit accounts; customers completing financial transactions without using a bank; adverse changes in credit quality and other risks posed by TCF's loan, lease, investment, securities held to maturity and securities available for sale portfolios, including declines in commercial or residential real estate values, changes in the allowance for loan and lease losses dictated by new market conditions or regulatory requirements, or the inability of home equity line borrowers to make increased payments caused by increased interest rates or amortization of principal; deviations from estimates of prepayment rates and fluctuations in interest rates that result in decreases in the value of assets such as interest-only strips that arise in connection with TCF's loan sales activity; 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; the effect of any negative publicity.

Legislative and Regulatory Requirements. New consumer protection and supervisory requirements and regulations, including those resulting from action by the Consumer Financial Protection Bureau and changes in the scope of Federal preemption of state laws that could be applied to national banks and their subsidiaries; the imposition of requirements that adversely impact TCF's deposit, lending, loan collection and other business activities such as mortgage foreclosure moratorium laws, further regulation of financial institution campus banking programs, use by municipalities of eminent domain on property securing troubled residential mortgage loans, or imposition of underwriting or other limitations that impact the ability to offer certain variable-rate products; changes affecting customer account charges and fee income, including changes to interchange rates; regulatory actions or changes in customer opt-in preferences with respect to overdrafts, which may have an adverse impact on TCF's fee revenue; 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; regulatory criticism and resulting enforcement actions or other adverse consequences such as increased capital requirements, higher deposit insurance assessments or monetary damages or penalties; heightened regulatory practices, requirements or expectations, including, but not limited to, requirements related to enterprise risk management, 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 impact on banks of regulatory reform, including additional capital, leverage, liquidity and risk management requirements or changes in the composition of qualifying regulatory capital; 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 future retail deposit account changes, including limitations on TCF's ability to predict customer behavior and the impact on TCF's fee revenues.

Branching Risk; Growth Risks. Adverse developments affecting TCF's supermarket banking relationships or any of the supermarket chains in which TCF maintains supermarket branches; costs related to closing underperforming branches; 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 TCF's balance sheet through programs or new opportunities; failure to successfully attract and retain new customers, including the failure to attract and retain manufacturers and dealers to expand the inventory finance business; failure to effectuate, and risks of claims related to, sales and securitizations of loans; risks related to new 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, cyber-attacks and other security breaches, counterparty failures and the possibility that deposit account losses (fraudulent checks, etc.) may increase; failure to keep pace with technological change, including the failure to develop and maintain technology necessary to satisfy customer demands.

Litigation Risks. Results of litigation or government enforcement actions, including class action litigation or enforcement actions concerning TCF's lending or deposit activities including account servicing processes or fees or charges, or employment practices; and possible increases in indemnification 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 federal, state or foreign 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 INCOME
(Dollars in thousands, except per-share data)
(Unaudited)
               
Three Months Ended December 31,Change
20142013$%
Interest income:
Loans and leases $ 205,507 $ 204,042 $ 1,465 0.7 %
Securities available for sale 3,053 4,194 (1,141 ) (27.2 )
Securities held to maturity 1,429 94 1,335 N.M.
Investments and other 9,819   7,599   2,220   29.2
Total interest income 219,808   215,929   3,879   1.8
Interest expense:
Deposits 10,760 8,428 2,332 27.7
Borrowings 4,974   5,639   (665 ) (11.8 )
Total interest expense 15,734   14,067   1,667   11.9
Net interest income 204,074 201,862 2,212 1.1
Provision for credit losses 55,597   22,792   32,805   143.9
Net interest income after provision for credit losses 148,477   179,070   (30,593 ) (17.1 )
Non-interest income:
Fees and service charges 39,477 43,254 (3,777 ) (8.7 )
Card revenue 12,830 13,066 (236 ) (1.8 )
ATM revenue 5,249   5,382   (133 ) (2.5 )
Subtotal 57,556 61,702 (4,146 ) (6.7 )
Gains on sales of auto loans, net 12,962 7,278 5,684 78.1
Gains on sales of consumer real estate loans, net 6,175 5,345 830 15.5
Servicing fee income 6,365     3,903     2,462   63.1
Subtotal 25,502 16,526 8,976 54.3
Leasing and equipment finance 24,367 23,328 1,039 4.5
Other 2,363   2,812   (449 ) (16.0 )
Fees and other revenue 109,788 104,368 5,420 5.2
Gains (losses) on securities, net (20 ) 1,044   (1,064 ) N.M.
Total non-interest income 109,768   105,412   4,356   4.1
Non-interest expense:
Compensation and employee benefits 115,796 108,589 7,207 6.6
Occupancy and equipment 35,747 35,504 243 0.7
FDIC insurance 2,643 7,892 (5,249 ) (66.5 )
Operating lease depreciation 6,878 6,009 869 14.5
Advertising and marketing 5,146 3,754 1,392 37.1
Other 48,063   44,162   3,901   8.8
Subtotal 214,273 205,910 8,363 4.1
Branch realignment 8,869 (8,869 ) (100.0 )
Foreclosed real estate and repossessed assets, net 7,441 6,066 1,375 22.7
Other credit costs, net 44   (376 ) 420  

N.M. 

Total non-interest expense 221,758   220,469   1,289   0.6
Income before income tax expense 36,487 64,013 (27,526 ) (43.0 )
Income tax expense 11,011   22,791   (11,780 ) (51.7 )
Income after income tax expense 25,476 41,222 (15,746 ) (38.2 )
Income attributable to non-controlling interest 1,488   1,227   261   21.3
Net income attributable to TCF Financial Corporation 23,988   39,995   (16,007 ) (40.0 )
Preferred stock dividends 4,847   4,847    
Net income available to common stockholders $ 19,141   $ 35,148   $ (16,007 ) (45.5 )
 
Net income per common share:
Basic $ 0.12 $ 0.22 $ (0.10 ) (45.5 )%
Diluted 0.12 0.22 (0.10 ) (45.5 )
 
Dividends declared per common share $ 0.05 $ 0.05 $ %
 
Average common and common equivalent shares outstanding (in thousands):
Basic 164,384 161,544 2,840 1.8 %
Diluted 164,869 162,625 2,244 1.4
 
N.M. Not Meaningful.
 
 
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per-share data)
(Unaudited)
               
Year Ended December 31,Change
20142013$%
Interest income:
Loans and leases $ 820,436 $ 819,501 $ 935 0.1 %
Securities available for sale 11,994 18,074 (6,080 ) (33.6 )
Securities held to maturity 5,281 277 5,004 N.M.
Investments and other 36,518   26,688   9,830   36.8
Total interest income 874,229   864,540   9,689   1.1
Interest expense:
Deposits 38,385 36,604 1,781 4.9
Borrowings 20,215   25,312   (5,097 ) (20.1 )
Total interest expense 58,600   61,916   (3,316 ) (5.4 )
Net interest income 815,629 802,624 13,005 1.6
Provision for credit losses 95,737   118,368   (22,631 ) (19.1 )
Net interest income after provision for credit losses 719,892   684,256   35,636   5.2
Non-interest income:
Fees and service charges 154,386 166,606 (12,220 ) (7.3 )
Card revenue 51,323 51,920 (597 ) (1.1 )
ATM revenue 22,225   22,656   (431 ) (1.9 )
Subtotal 227,934 241,182 (13,248 ) (5.5 )
Gains on sales of auto loans, net 43,565 29,699 13,866 46.7
Gains on sales of consumer real estate loans, net 34,794 21,692 13,102 60.4
Servicing fee income 21,444     13,406     8,038   60.0
Subtotal 99,803 64,797 35,006 54.0
Leasing and equipment finance 93,799 90,919 2,880 3.2
Other 10,704   6,196   4,508   72.8
Fees and other revenue 432,240 403,094 29,146 7.2
Gains (losses) on securities, net 1,027   964   63   6.5
Total non-interest income 433,267   404,058   29,209   7.2
Non-interest expense:
Compensation and employee benefits 452,942 429,188 23,754 5.5
Occupancy and equipment 139,023 134,694 4,329 3.2
FDIC insurance 25,123 32,066 (6,943 ) (21.7 )
Operating lease depreciation 27,152 24,500 2,652 10.8
Advertising and marketing 22,943 21,477 1,466 6.8
Other 179,904   167,777   12,127   7.2
Subtotal 847,087 809,702 37,385 4.6
Branch realignment 8,869 (8,869 ) (100.0 )
Foreclosed real estate and repossessed assets, net 24,567 27,950 (3,383 ) (12.1 )
Other credit costs, net 123   (1,252 ) 1,375  

N.M. 

Total non-interest expense 871,777   845,269   26,508   3.1
Income before income tax expense 281,382 243,045 38,337 15.8
Income tax expense 99,766   84,345   15,421   18.3
Income after income tax expense 181,616 158,700 22,916 14.4
Income attributable to non-controlling interest 7,429   7,032   397   5.6
Net income attributable to TCF Financial Corporation 174,187   151,668   22,519   14.8
Preferred stock dividends 19,388   19,065   323   1.7
Net income available to common stockholders $ 154,799   $ 132,603   $ 22,196   16.7
 
Net income per common share:
Basic $ 0.95 $ 0.82 $ 0.13 15.9 %
Diluted 0.94 0.82 0.12 14.6
 
Dividends declared per common share $ 0.20 $ 0.20 $ %
 
Average common and common equivalent shares outstanding (in thousands):
Basic 163,581 161,016 2,565 1.6 %
Diluted 164,085 161,927 2,158 1.3
 
N.M. Not Meaningful.
 
 
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in thousands)
(Unaudited)
               
Three Months Ended December 31,Change
20142013$%
Net income attributable to TCF Financial Corporation $ 23,988   $ 39,995   $ (16,007 ) (40.0 )%
Other comprehensive income (loss):
Securities available for sale:
Unrealized gains (losses) arising during the period 9,419 (13,778 ) 23,197

N.M. 

Reclassification of net (gains) losses to net income 299 (860 ) 1,159

N.M. 

Net investment hedges:
Unrealized gains (losses) arising during the period 1,449 861 588 68.3
Foreign currency translation adjustment:
Unrealized gains (losses) arising during the period (1,661 ) (999 ) (662 ) (66.3 )
Recognized postretirement prior service cost and transition obligation:
Net actuarial gains (losses) arising during the period (12 ) (11 ) (1 ) (9.1 )
Income tax (expense) benefit (4,188 ) 5,172   (9,360 )

N.M. 

Total other comprehensive income (loss) 5,306   (9,615 ) 14,921  

N.M. 

Comprehensive income $ 29,294   $ 30,380   $ (1,086 ) (3.6 )
 
 
Year Ended December 31,Change
20142013$%
Net income attributable to TCF Financial Corporation $ 174,187   $ 151,668   $ 22,519   14.8 %
Other comprehensive income (loss):
Securities available for sale:
Unrealized gains (losses) arising during the period 29,071 (61,177 ) 90,248

N.M. 

Reclassification of net (gains) losses to net income (76 ) (860 ) 784 91.2
Net investment hedges:
Unrealized gains (losses) arising during the period 3,126 1,625 1,501 92.4
Foreign currency translation adjustment:
Unrealized gains (losses) arising during the period (3,704 ) (1,979 ) (1,725 ) (87.2 )
Recognized postretirement prior service cost and transition obligation:
Net actuarial gains (losses) arising during the period (47 ) (46 ) (1 ) (2.2 )
Income tax (expense) benefit (12,067 ) 22,781   (34,848 )

N.M. 

Total other comprehensive income (loss) 16,303   (39,656 ) 55,959  

N.M. 

Comprehensive income $ 190,490   $ 112,012   $ 78,478   70.1
 
N.M. Not Meaningful.
 
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except per-share data)
(Unaudited)
               
At Dec. 31,Change
20142013$%
ASSETS:
Cash and due from banks $ 1,115,250 $ 915,076 $ 200,174 21.9 %
Investments 85,492 94,326 (8,834 ) (9.4 )
Securities held to maturity 214,454 19,912 194,542

N.M. 

Securities available for sale 463,294 551,064 (87,770 ) (15.9 )
Loans and leases held for sale 132,266 79,768 52,498 65.8
Loans and leases:
Consumer real estate:
First mortgage lien 3,139,152 3,766,421 (627,269 ) (16.7 )
Junior lien 2,543,212   2,572,905   (29,693 ) (1.2 )
Total consumer real estate 5,682,364 6,339,326 (656,962 ) (10.4 )
Commercial 3,157,665 3,148,352 9,313 0.3
Leasing and equipment finance 3,745,322 3,428,755 316,567 9.2
Inventory finance 1,877,090 1,664,377 212,713 12.8
Auto finance 1,915,061 1,239,386 675,675 54.5
Other 24,144   26,743   (2,599 ) (9.7 )
Total loans and leases 16,401,646 15,846,939 554,707 3.5
Allowance for loan and lease losses (164,169 ) (252,230 ) 88,061   34.9
Net loans and leases 16,237,477 15,594,709 642,768 4.1
Premises and equipment, net 436,361 437,602 (1,241 ) (0.3 )
Goodwill 225,640 225,640
Other assets 484,377   461,743   22,634   4.9
Total assets $ 19,394,611   $ 18,379,840   $ 1,014,771   5.5
 
LIABILITIES AND EQUITY:
Deposits:
Checking $ 5,195,243 $ 4,980,451 $ 214,792 4.3
Savings 5,212,320 6,194,003 (981,683 ) (15.8 )
Money market 1,993,130   831,910   1,161,220   139.6
Subtotal 12,400,693 12,006,364 394,329 3.3
Certificates of deposit 3,049,189   2,426,412   622,777   25.7
Total deposits 15,449,882   14,432,776   1,017,106   7.0
Short-term borrowings 4,425 4,918 (493 ) (10.0 )
Long-term borrowings 1,232,065   1,483,325   (251,260 ) (16.9 )
Total borrowings 1,236,490 1,488,243 (251,753 ) (16.9 )
Accrued expenses and other liabilities 572,875   494,062   78,813   16.0
Total liabilities 17,259,247   16,415,081   844,166   5.1
Equity:
Preferred stock, par value $0.01 per share, 30,000,000 shares authorized; 4,006,900 shares issued 263,240 263,240
Common stock, par value $0.01 per share, 280,000,000 shares authorized; 167,503,568 and 165,164,861 shares issued, respectively 1,675 1,652 23 1.4
Additional paid-in capital 817,130 779,641 37,489 4.8
Retained earnings, subject to certain restrictions 1,099,914 977,846 122,068 12.5
Accumulated other comprehensive income (loss) (10,910 ) (27,213 ) 16,303 59.9
Treasury stock at cost, 42,566 shares, and other (49,400 ) (42,198 ) (7,202 ) (17.1 )
Total TCF Financial Corporation stockholders' equity 2,121,649 1,952,968 168,681 8.6
Non-controlling interest in subsidiaries 13,715   11,791   1,924   16.3
Total equity 2,135,364   1,964,759   170,605   8.7
Total liabilities and equity $ 19,394,611   $ 18,379,840   $ 1,014,771   5.5
 
N.M. Not Meaningful.
 
 
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
SUMMARY OF CREDIT QUALITY DATA
(Dollars in thousands)
(Unaudited)
             
AtAtAtAtAtChange from
Dec. 31,Sep. 30,Jun. 30,Mar. 31,Dec. 31,Sep. 30,Dec. 31,
2014201420142014201320142013

Delinquency Data - Principal Balances(1)

60 days or more:
Consumer real estate:
First mortgage lien $ 13,370 $ 14,582 $ 20,678 $ 20,051 $ 20,894 $ (1,212 ) $ (7,524 )
Junior lien 2,091   2,554   2,415   4,049   3,532   (463 ) (1,441 )
Total consumer real estate 15,461 17,136 23,093 24,100 24,426 (1,675 ) (8,965 )
Commercial 4,117 1,905 1,430 (4,117 ) (1,430 )
Leasing and equipment finance 2,549 2,045 2,642 2,864 2,401 504 148
Inventory finance 75 110 204 212 50 (35 ) 25
Auto finance 4,263 3,606 2,152 1,554 1,877 657 2,386
Other   5   3   3   10   (5 ) (10 )
Subtotal 22,348 27,019 28,094 30,638 30,194 (4,671 ) (7,846 )
Acquired portfolios 88   165   251   240   458   (77 ) (370 )
Total delinquencies $ 22,436   $ 27,184   $ 28,345   $ 30,878   $ 30,652   $ (4,748 ) $ (8,216 )
 

Delinquency Data - % of Portfolio(1)

60 days or more:
Consumer real estate:
First mortgage lien 0.45 % 0.45 % 0.61 % 0.57 % 0.58 % bps (13 ) bps
Junior lien 0.08 0.10 0.10 0.17 0.14 (2 ) (6 )
Total consumer real estate 0.28 0.30 0.40 0.41 0.40 (2 ) (12 )
Commercial 0.13 0.06 0.05 (13 ) (5 )
Leasing and equipment finance 0.07 0.06 0.08 0.08 0.07 1
Inventory finance 0.01 0.01 0.01 (1 )
Auto finance 0.22 0.21 0.14 0.11 0.15 1 7
Other 0.02 0.01 0.01 0.04 (2 ) (4 )
Subtotal 0.14 0.17 0.18 0.19 0.19 (3 ) (5 )
Acquired portfolios 0.03 2.27 2.26 1.38 1.64 (224 ) (161 )
Total delinquencies 0.14 0.17 0.18 0.19 0.20 (3 ) (6 )
 
(1) Excludes non-accrual loans and leases.
AtAtAtAtAtChange from
Dec. 31,Sep. 30,Jun. 30,Mar. 31,Dec. 31,Sep. 30,Dec. 31,
2014201420142014201320142013

Non-Accrual Loans and Leases

Non-accrual loans and leases:
Consumer real estate:
First mortgage lien $ 137,790 $ 179,062 $ 172,256 $ 176,841 $ 180,811 $ (41,272 ) $ (43,021 )
Junior lien 35,481   38,434   38,146   39,222   38,222   (2,953 ) (2,741 )
Total consumer real estate 173,271 217,496 210,402 216,063 219,033 (44,225 ) (45,762 )
Commercial 25,035 38,541 30,051 35,209 40,539 (13,506 ) (15,504 )
Leasing and equipment finance 12,670 13,517 16,093 13,908 14,041 (847 ) (1,371 )
Inventory finance 2,082 2,921 1,988 307 2,529 (839 ) (447 )
Auto finance 3,676 2,408 1,468 856 470 1,268 3,206
Other   228   292   336   410   (228 ) (410 )
Total non-accrual loans and leases $ 216,734   $ 275,111   $ 260,294   $ 266,679   $ 277,022   $ (58,377 ) $ (60,288 )
 
Non-accrual loans and leases - rollforward:
Balance, beginning of period $ 275,111 $ 260,294 $ 266,679 $ 277,022 $ 282,873 $ 14,817 $ (7,762 )
Additions 44,626 83,597 61,242 54,432 71,513 (38,971 ) (26,887 )
Charge-offs (14,456 ) (24,430 ) (15,135 ) (15,323 ) (25,195 ) 9,974 10,739
Transfers to other assets (18,471 ) (17,404 ) (17,994 ) (15,609 ) (23,085 ) (1,067 ) 4,614
Return to accrual status (8,280 ) (12,966 ) (18,224 ) (16,334 ) (13,085 ) 4,686 4,805
Payments received (21,859 ) (13,459 ) (14,910 ) (17,925 ) (13,331 ) (8,400 ) (8,528 )
Sales (40,354 ) (1,900 ) (3,602 ) (40,354 ) (36,752 )
Other, net 417   (521 ) 536   416   934   938   (517 )
Balance, end of period $ 216,734   $ 275,111   $ 260,294   $ 266,679   $ 277,022   $ (58,377 ) $ (60,288 )
 
 
TCF FINANCIAL CORPORATION AND SUBSIDIARIES
SUMMARY OF CREDIT QUALITY DATA, CONTINUED
(Dollars in thousands)
(Unaudited)
                           
AtAtAtAtAtChange from
Dec. 31,Sep. 30,Jun. 30,Mar. 31,Dec. 31,Sep. 30,Dec. 31,
2014201420142014201320142013

Other Real Estate Owned

Other real estate owned:
Consumer real estate $ 44,932 $ 44,532 $ 42,745 $ 43,149 $ 47,637 $ 400 $ (2,705 )
Commercial real estate 20,718   23,082   22,335   20,299   21,237   (2,364 ) (519 )
Total other real estate owned $ 65,650   $ 67,614   $ 65,080   $ 63,448   $ 68,874   $ (1,964 ) $ (3,224 )
 
Other real estate owned - rollforward:
Balance, beginning of period $ 67,614 $ 65,080 $ 63,448 $ 68,874 $ 65,579 $ 2,534 $ 2,035
Transferred in 18,220 14,854 15,751 14,160 21,045 3,366 (2,825 )
Sales (13,766 ) (11,943 ) (15,998 ) (17,526 ) (15,939 ) (1,823 ) 2,173
Writedowns (5,753 ) (2,750 ) (2,782 ) (3,147 ) (3,496 ) (3,003 ) (2,257 )
Other, net (665 ) 2,373   4,661   1,087   1,685   (3,038 ) (2,350 )
Balance, end of period $ 65,650   $ 67,614   $ 65,080   $ 63,448   $ 68,874   $ (1,964 ) $ (3,224 )
 
Ending number of properties: (1)
Consumer real estate 423 396 396 411 479 27 (56 )
Commercial real estate 14   15   14   16   18   (1 ) (4 )
Total 437   411   410   427   497   26   (60 )
 
(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 December 31,At September 30,At December 31,
201420142013Change from
% of% of% ofSep. 30,Dec. 31,
BalancePortfolioBalancePortfolioBalancePortfolio20142013
Consumer real estate $ 85,361 1.50 % $ 145,125 2.43 % $ 176,030 2.78 % (93 ) bps (128 ) bps
Commercial 31,367 0.99 33,290 1.05 37,467 1.19 (6 ) (20 )
Leasing and equipment finance 18,446 0.49 17,600 0.48 18,733 0.55 1 (6 )
Inventory finance 10,020 0.53 9,556 0.52 8,592 0.52 1 1
Auto finance 18,230 0.95 16,308 0.93 10,623 0.86 2 9
Other 745   3.09 779   3.25 785   2.94 (16 ) 15
Total $ 164,169   1.00 $ 222,658   1.36 $ 252,230   1.59 (36 ) (59 )
 

Net Charge-Offs

Change from
Quarter EndedQuarter Ended
Dec. 31,Sep. 30,Jun. 30,Mar. 31,Dec. 31,Sep. 30,Dec. 31,
2014201420142014201320142013
Consumer real estate:
First mortgage lien $ 6,932