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TCF Financial Corp. Reports Operating Results (10-K)

February 21, 2012 | About:

TCF Financial Corp. (TCB) filed Annual Report for the period ended 2011-12-31.

Tcf Finl Corp has a market cap of $1.8 billion; its shares were traded at around $11.33 with a P/E ratio of 16.3 and P/S ratio of 1.3. The dividend yield of Tcf Finl Corp stocks is 1.8%.

Highlight of Business Operations:

Under the Bank Holding Company Act of 1956 (BHCA), Federal Reserve approval is required before acquiring more than 5% control, or substantially all of the assets, of another bank, or bank holding company, or merging or consolidating with such a bank or bank holding company. The BHCA also generally prohibits a bank holding company, with certain exceptions, from acquiring direct or indirect ownership or control of more than 5% of the voting shares of any company which is not a bank or bank holding company, or from engaging directly or indirectly in activities other than those of banking, managing or controlling banks, providing services for its subsidiaries, or conducting activities permitted by the Federal Reserve as being closely related to the business of banking. Further restrictions or limitations on acquisitions or establishing financial subsidiaries may also be imposed by TCFs regulators or examiners.

The FDIC reserve ratio will be increased to 1.35% ($1.35 for each $100 of insured deposits) by September 30, 2020 for the Deposit Insurance Fund (DIF), pursuant to the requirements of the Dodd-Frank Act. The Federal Deposit Insurance Reform Act of 2005 provides the FDIC Board of Directors the authority to set the designated reserve ratio and it cannot be less than 1.35% . The FDIC must adopt a restoration plan when the reserve ratio falls below 1.35% and may begin paying dividends when the reserve ratio exceeds 1.50% . The DIF reserve ratio calculated by the FDIC at September 30, 2011 was .12%. In 2011, the annual insurance premiums on bank deposits insured by the DIF for banks with at least $10 billion in total assets ranged from $.025 to $.45 per $100 of deposits.

On April 1, 2011, the FDIC adopted a final rule requiring changes in the FDIC insurance rate calculations for banks over $10 billion in total assets. In addition to risk-based deposit insurance premiums, additional assessments may be imposed by the Financing Corporation, a separate U.S. government agency affiliated with the FDIC, on insured deposits to pay for the interest cost of Financing Corporation bonds. Financing Corporation assessment rates for 2011 ranged from $.0066 to $.0100 for each $100 of deposits. Financing Corporation assessments of $1.2 million in each of 2011, 2010 and 2009 were paid by TCF Bank.

aggregate net book value of approximately $281.2 million at December 31, 2011. At December 31, 2011, the aggregate net book value of leasehold improvements associated with leased bank branch office facilities was $20.3 million. In addition to the branch offices, TCF owned and leased other facilities with an aggregate net book value of $49.5 million at December 31, 2011. For more information on premises and equipment, see Note 8 of Notes to Consolidated Financial Statements.

The New TCF Peer Group for 2012 consists of the publicly-traded banks and thrifts with total assets ranging from $10 billion to $50 billion as of December 31, 2011. This is a change from TCFs previously defined peer group which consisted of 30 publicly-traded banks and thrifts, 15 immediately larger than and 15 immediately smaller than TCF. TCF changed its peer group to align itself with financial institutions that are similarly impacted by recent regulatory and legislative changes because TCF believes that the New Peer Group represents a more relevant group of companies in the financial services industry. The New and Old TCF Peer Groups are shown below for comparison purposes.

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