TCF Financial's first-quarter 2014 earnings came in line with the
Zacks Consensus Estimate. However it came significantly above the
prior-year quarter earnings. Organic growth was reflected in the
quarter. Moreover, credit quality improved. However, increase in
expenses was a headwind. We expect the company to maintain its
superior position in the market based on its positive approach to
market conditions and top-line growth. Moreover, a healthy capital
position along with strong capital deployment activities is
indicative of the company's robust standing. However, regulatory
pressure and continuous rise in expenses remain looming concerns.
TCF Financial Corporation is a Wayzata, MN-based national
financial holding company with $18.8 billion in assets. The company
has 381 banking offices in Minnesota, Illinois, Michigan,
Wisconsin, Colorado, Indiana, Arizona and South Dakota, providing
retail and commercial banking services. TCB Bank remains open 7
days a week, offering convenient deposit products, lending and
business banking services in more than 400 traditional grocery
stores and campus locations.
TCF Financial operates as a holding company for TCF National
Bank and TCF National Bank Arizona that offer various retail and
commercial banking services in the United States and Canada. TCF
Financial's core businesses include Lending and Funding. Lending
includes retail lending, commercial banking, leasing and equipment
finance, inventory finance and auto finance. Funding includes
branch banking and treasury services.
TCF Financial has a joint venture with The Toro Company called
Red Iron Acceptance, LLC. TCF Financial and Toro maintain ownership
interests of 55% and 45%, respectively, in Red Iron. As TCF
Financial has a controlling financial interest in Red Iron, its
financial results are consolidated in TCF's financial statements.
Moreover, Toro's interest is reported as a non-controlling interest
within equity and qualifies as Tier 1 regulatory capital.
In Nov 2011, TCF National Bank, a wholly-owned subsidiary of TCF
Financial acquired Gateway One Lending & Finance, LLC, a
privately-held lending company that indirectly originates loans on
new and used autos to consumers through established dealer
relationships. Therefore, TCF Financial entered into the auto
finance business with this acquisition, further diversifying its
lending business in addition to providing growth opportunities
within the U.S. auto lending marketplace.
TCF Financial's reportable segments comprised Lending, Funding
and Support Services. In 2012, TCF Financial changed the managerial
structure and therefore its segments. Prior periods' segment
information has been restated to reflect the current structure.
Lending includes retail lending, commercial banking and the
national lending businesses.
Funding includes branch banking and treasury services. Treasury
services include the company's investment and borrowing portfolios
and management of capital, debt and market risks, including
interest rate and liquidity risks.
Support Services includes holding company and corporate
functions that provide data processing, bank operations and other
professional services to the operating segments.
TCF Financial Corporation (TCB): Read the Full
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