TCF FINANCIAL CORPORATION (NYSE:TCB) Files An 8-K Costs Associated with Exit or Disposal ActivitiesItem 2.05 Costs Associated With Exit or Disposal Activities.
On November 27, 2017, the Board of Directors of TCF Financial Corporation, a Delaware corporation (“TCF” or the “Company”) approved an executive management plan to discontinue all indirect auto loan originations by the Company, effective December 1, 2017. The determination was based on management’s review of strategic alternatives and the financial outlook of the indirect auto loan origination business compared with alternative uses of capital as part of the development of the Company's 2018 annual plan. TCF will continue to service existing auto loans on its balance sheet and auto loans serviced for others. Actions to wind down operations that support indirect auto originations will begin immediately and the servicing operations will be adjusted over time to support business requirements including the retention of the necessary staff. Additional costs may be incurred as the Company executes the plan.
As a result of these actions, TCF expects to recognize a one-time, after-tax charge in the fourth quarter of 2017 in an approximate amount between $80.4 million and $85.4 million consisting primarily of:
|
Approximately $73.4 million of goodwill and other intangible assets impairment; and |
|
Between approximately $7.0 million and approximately $12.0 million related to items including severance, asset impairment and lease termination write-offs. |
Of the amounts above, on a pre-tax basis, approximately $8.0 million to $16.0 million are expected to result in future cash expenditures. It is anticipated that the actions described will be substantially completed by the end of the first quarter of 2018. The ranges described above are only estimates and the actual charges incurred could differ materially from these estimates.
A copy of the news release announcing this action is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 2.06 Material Impairments.
The information set forth under Item 2.05 of this report on Form 8-K is incorporated by reference into this item 2.06.
Item 7.01 Regulation FD Disclosure.
Information is being furnished herein in Exhibit 99.2 with respect to the slide presentation prepared for use with the press release. The presentation is also available on the Investor Relations section of the Company’s web site at http://ir.tcfbank.com. Information contained herein, including Exhibit 99.2, shall not be deemed filed for the purposes of the Securities Exchange Act of 1934, nor shall such information and Exhibit be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such a filing.
Item 8.01. Other Events.
On November 27, 2017, the Company issued a news release announcing the replacement of its previous share repurchase program. to the share repurchase program, the Company is authorized to repurchase up to $150.0 million in aggregate value of shares of the Company’s common stock. The timing and extent of any repurchases will depend upon market conditions, the trading price of the Company's shares and other factors. There are no assurances the Company will repurchase any shares, and the share repurchase may be commenced or suspended at any time or from time to time by the Company.
A copy of the news release announcing this action is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
TCF FINANCIAL CORP ExhibitEX-99.1 2 exhibit991release.htm EXHIBIT 99.1 Exhibit Exhibit 99.1 NEWS RELEASE TCF Financial Corporation • 200 Lake Street East • Wayzata MN 55391FOR IMMEDIATE RELEASE Contact:Mark Goldman (952) 475-7050 [email protected] (Media)Jason Korstange (952) 745-2755 [email protected] (Investors)TCF TO DISCONTINUE INDIRECT AUTO ORIGINATIONS,…To view the full exhibit click here
About TCF FINANCIAL CORPORATION (NYSE:TCB)
TCF Financial Corporation (TCF) is a bank holding company. The Company’s principal subsidiary is TCF National Bank (TCF Bank). The Company operates in three segments: Lending, Funding and Support Services. Its Lending segment includes consumer real estate, commercial real estate and business lending, leasing and equipment finance, inventory finance and auto finance. Its Funding segment includes branch banking and treasury services, which includes the Company’s investment and borrowing portfolios and management of capital, debt and market risks, including interest rate and liquidity risks. Its Support Services segment includes Holding Company and corporate functions that provide data processing, bank operations and other professional services to the operating segments. TCF Bank operates bank branches in Illinois, Minnesota, Michigan, Colorado, Wisconsin, Arizona, South Dakota and Indiana. TCF delivers retail banking products in over 40 states.
