TCF Bank 2013 Annual Report Download - page 7

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Strong Loan and Lease Originations
“Loan and lease originations also increased 12.4 percent
to $12.1 billion in 2013 compared to 2012, primarily due
to opportunities in our national lending platforms.”
(commercial, leasing and equipment
finance and inventory finance). This
nearly even mix between retail and
wholesale is ideal for TCF as it
demonstrates strong diversification
across our loan and lease products.
Prior to the increased competition for
loans and leases within our branch
footprint states, particularly in
commercial, TCF invested in a unique
blend of national lending platforms
with experienced management teams.
These platforms have allowed us to
generate organic growth on a national
basis without having to focus on asset
generation in the more competitive
environments or take on additional
credit risk within our markets.
Total loans and leases of $15.8 billion
at December 31, 2013, was an increase
of 2.7 percent from the prior year.
Loan and lease originations also
increased 12.4 percent to $12.1 billion
in 2013 compared to 2012, primarily
due to opportunities in our national
lending platforms.
This increase in total loan and lease
balances occurred despite $1.6 billion
of core sales of consumer real estate
and auto finance loans in 2013, up
123.1 percent from similar loan sales
in 2012. Excluding these loan sales,
total loans and leases grew 8.1 percent
in 2013. The loan sales have been a
core revenue source for TCF since
2012 while also allowing us to actively
manage concentration risk within
the portfolios. This model gives us
the capacity to generate additional
earning asset growth in the future by
controlling the volume of loans we sell.
TCF’s largest growth engine in 2013
was Gateway One, an indirect auto
loan business acquired in November
2011. Gateway One finished 2013
with loan balances of $1.2 billion, up
124.2 percent from 2012, with an
average yield of 4.84 percent. Despite
a very competitive environment, loan
originations increased 61.5 percent in
2013 to $1.9 billion. In addition, TCF
managed concentration risk and
generated additional revenue by selling
$795.3 million of auto loans in 2013.
Gateway One is led by an experienced
management team and now has
nearly 8,500 dealer relationships in
45 states. Following a successful
integration in 2012, Gateway One has
become a key piece of the disciplined
growth story at TCF. The portfolio is
made up primarily of used auto loans
and is well diversified by geography.
Credit quality remains strong and the
portfolio continues to perform. We are
excited about the future growth
opportunities with Gateway One.
TCF Inventory Finance balances
totaled $1.7 billion at December 31,
2013, up 6.2 percent from the prior
year. The loan portfolio has a high
2013 Annual Report // TCF Financial Corporation and Subsidiaries 05