TCF Reports Fourth Quarter 2020 Results
TCF Financial Corporation (NASDAQ: TCF):
Fourth Quarter 2020 Highlights
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Quarterly net income of
$91.4 million , or$0.58 per diluted share, up63.9% from the third quarter of 2020 -
Adjusted diluted earnings per common share of
$0.75 (1), up19.0% from the third quarter of 2020. Adjusted diluted earnings per common share excludes$24.7 million , or$0.17 per share, after-tax impact of merger-related expenses and notable items -
Loan and lease balances grew
0.4% from September 30, 2020. Loan and lease balances, excluding PPP loans, grew1.2% from September 30, 2020 -
Net charge-offs of
$11.6 million , or0.14% of average loans and leases (annualized) -
Provision for credit losses of
$11.8 million , down83.0% from the third quarter of 2020 -
Allowance for credit losses, which includes the reserve for unfunded lending commitments, of
1.59% of total loans and leases, compared to1.60% at September 30, 2020 -
Nonaccrual loans and leases of
$677.3 million , up$300.6 million , or79.8% , from September 30, 2020 -
Efficiency ratio of
74.53% , improved 76 basis points from the third quarter of 2020. Adjusted efficiency ratio of64.80% (1), up 363 basis points from the third quarter of 2020 -
Common equity Tier 1 capital ratio of
11.45% , compared to11.45% at September 30, 2020 - On December 13, 2020, announced merger with Huntington Bancshares Incorporated ("Huntington"), which is expected to close in the second quarter of 2021
Merger-related Expenses and Notable items in the Fourth Quarter of 2020 and Third Quarter of 2020(1)
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Pre-tax merger-related expenses of
$31.5 million ,$24.4 million net of tax, or$0.17 per diluted common share for the fourth quarter of 2020, compared to pre-tax merger-related expenses of$54.0 million ,$42.8 million net of tax, or$0.28 per diluted common share for the third quarter of 2020 -
Pre-tax expenses of
$357 thousand ,$276 thousand net of tax, related to notable items for the fourth quarter of 2020, compared to pre-tax expenses of$154 thousand ,$122 thousand net of tax, related to notable items for the third quarter of 2020, see summary of notable items adjustments below
(1) |
Denotes a non-GAAP financial measure. See "Reconciliation of GAAP to Non-GAAP Financial Measures" tables and the following table detailing merger-related expenses and notable items. |
Summary of Financial Results |
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At or For the Quarter Ended |
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Change From |
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Dec. 31, |
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Sep. 30, |
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Jun. 30, |
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Mar. 31, |
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Dec. 31, |
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Sep. 30, |
Dec. 31, |
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(Dollars in thousands, except per share data) |
2020 |
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2020 |
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2020 |
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2020 |
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2019 |
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2020 |
2019 |
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Financial Results |
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Net income attributable to TCF |
$ |
91,358 |
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$ |
55,738 |
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$ |
23,764 |
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$ |
51,899 |
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$ |
112,399 |
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63.9 |
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% |
(18.7) |
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% |
Net interest income |
381,394 |
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377,167 |
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378,359 |
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401,481 |
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408,753 |
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1.1 |
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(6.7) |
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Basic earnings per common share |
$ |
0.58 |
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$ |
0.35 |
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$ |
0.14 |
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$ |
0.33 |
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$ |
0.72 |
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65.7 |
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(19.4) |
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Diluted earnings per common share |
0.58 |
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0.35 |
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0.14 |
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0.32 |
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0.72 |
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65.7 |
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(19.4) |
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Return on average assets ("ROAA")(1) |
0.78 |
% |
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0.46 |
% |
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0.21 |
% |
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0.46 |
% |
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0.99 |
% |
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32 |
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bps |
(21) |
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bps |
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ROACE(1) |
6.44 |
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3.87 |
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1.56 |
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3.64 |
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8.00 |
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257 |
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(156) |
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ROATCE (non-GAAP)(1)(2) |
9.18 |
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5.71 |
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2.57 |
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5.42 |
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11.35 |
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347 |
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(217) |
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Net interest margin |
3.53 |
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3.31 |
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3.33 |
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3.73 |
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3.86 |
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22 |
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(33) |
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Net interest margin (FTE)(1)(2) |
3.55 |
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3.34 |
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3.35 |
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3.76 |
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3.89 |
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21 |
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(34) |
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Net charge-offs as a percentage of average loans and leases(1) |
0.14 |
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0.28 |
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0.04 |
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0.06 |
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0.07 |
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(14) |
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7 |
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Nonperforming assets as a percentage of total loans and leases and other real estate owned(3) |
2.06 |
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1.20 |
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0.94 |
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0.80 |
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0.59 |
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86 |
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147 |
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Efficiency ratio |
74.53 |
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75.29 |
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78.26 |
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69.57 |
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73.49 |
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(76) |
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104 |
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Adjusted Financial Results (non-GAAP) |
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