TCF Financial Corporation (NYSE:TCB) Q4 2014 Earnings Conference Call - Final Transcript

Jan 29, 2015 • 10:00 am ET


TCF Financial Corporation (NYSE:TCB) Q4 2014 Earnings Conference Call - Final Transcript


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Good morning and welcome to TCF's 2014 Fourth Quarter Earnings Call. My name is Jamie and I will be your conference operator today. All lines have been placed on mute to prevent any background noise. After the speaker's remarks there will be a question-and-answer period. (Operator Instructions) At this time I would like to introduce Mr. Jason Korstange, TCF Director of Investor Relations, to begin the conference.

James Korstange

Good morning. Mr. William Cooper, Chairman and CEO will host this conference. Joining Mr. Cooper will be Mr. Craig Dahl, VC; Mr. Mike Jones, CFO; Mr. Jim Costa, CRO and Mr. Mark Bagley, CCO. (Forward-Looking Cautionary Statements) During our remarks today, we will be referencing a slide presentation that is available on the Investor Relations section of TCF's website, On today's call, Mr. Cooper will begin by discussing full year and fourth quarter highlights, Mike Jones will discuss credit and expenses, Craig Dahl will provide an overview of lending deposits and capital, and Mr. Cooper will wrap up with the summary. We will then open it up for questions.

I will now turn the conference call over to TCF Chairman and CEO, William Cooper.

William Cooper

Thank you Jason. I think this is my 111th quarterly earnings call. I am happy to report that TCF again had an excellent year. One of the highlights in the quarter which I will talk about is a minute is TCF's liquidation of its remaining residential TDR portfolio and I will talk more about that in a second. If you turn to page 5 of the slide deck, talked about the year, and this does include the cost of that sale of the TDRs that I mentioned in the year. Even with that we are at $0.94 which is up 14.5% from the year ago. Revenues were over 1.2 billion which is up 3.5%, loan and lease originations, 13.5 billion, up 12.5%. That is one of strongest increases in loan originations in the banking business. Deposits were up over 5% to 14.5 billion -- 15 billion. Provisions for credit losses were down 20% to 95 million and that includes sale of that TDR portfolio I mentioned. Non-accruals were down 22%, 200 million. Return on assets were pretty close to 1% and indeed would have been 1% without that transaction, but even with that up 9 basis points. Return on tangible equity over 10%, up 50 basis points from a year ago.

So, all strong improvements in credit, improvements in margins, improvements in income as compared to the prior year. When you look at the quarter, we are $0.12 a share in the quarter after the sale -- before the sale of TDR portfolio, which I'll talk about in a minute. We would've earned $0.29 as compared to $0.22 a year ago, which would have been a 13% increase. But after the sale of the TDR portfolio, we earned $0.12. Again the quarter revenue was up 2% over 300 million; loan originations at 3.5 billion up 12.5%; deposits 15.3 billion