Reportable Segments

9 Months Ended

Sep. 30, 2019

TCF's reportable segments are Consumer Banking, Commercial Banking and Enterprise Services. Consumer Banking is comprised of all of TCF's consumer-facing businesses and includes retail banking, consumer lending, wealth management and small business banking. Commercial Banking, previously named Wholesale Banking, is comprised of commercial and industrial and commercial real estate banking and lease financing. Enterprise Services is comprised of (i) corporate treasury, which includes TCF's investment and borrowing portfolios and management of capital, debt and market risks, (ii) corporate functions, such as information technology, risk and credit management, bank operations, finance, investor relations, corporate development, internal audit, legal and human capital management that provide services to the operating segments, (iii) the Holding Company and (iv) eliminations.

In connection with the Merger, effective August 1, 2019, TCF renamed its Wholesale Banking segment to Commercial Banking to align with the way TCF is now managed. In addition, activity that was related to small business banking and private banking were moved from the Wholesale Banking (now named Commercial Banking) segment to the Consumer Banking segment. The revised presentation of previously reported segment data has been applied retroactively to all periods presented in these financial statements.

TCF evaluates performance and allocates resources based on each reportable segment's net income or loss. The reportable segments follow GAAP as described in Note 1. Basis of Presentation, except for the accounting for intercompany interest income and interest expense, which are eliminated in consolidation and presenting net interest income on a fully tax-equivalent basis. TCF generally accounts for inter-segment sales and transfers at cost.

Certain information for each of TCF's reportable segments, including reconciliations of TCF's consolidated totals, was as follows:



(In thousands)	Consumer Banking			Commercial Banking		Enterprise Services			Consolidated
At or For the Three Months Ended September 30, 2019
Net interest income (expense)	$	191,940		$	157,437	$	22,416		$	371,793
Provision for credit losses	4,489			22,699		—			27,188
Net interest income (expense) after provision for credit losses	187,451			134,738		22,416			344,605
Noninterest income	57,102			47,929		(10,773		)	94,258
Noninterest expense	210,728			102,841		112,051			425,620
Income tax expense (benefit)	6,817			8,172		(26,724		)	(11,735		)
Income (loss) after income tax expense (benefit)	27,008			71,654		(73,684		)	24,978
Income attributable to non-controlling interest	—			2,830		—			2,830
Preferred stock dividends	—			—		2,494			2,494
Net income (loss) available to common shareholders	$	27,008		$	68,824	$	(76,178	)	$	19,654
Total assets⁽¹⁾	$	14,906,457		$	22,076,203	$	8,709,851		$	45,692,511
At or For the Three Months Ended September 30, 2018
Net interest income (expense)	$	143,015		$	94,252	$	16,235		$	253,502
Provision (benefit) for credit losses	(953		)	3,223		—			2,270
Net interest income (expense) after provision for credit losses	143,968			91,029		16,235			251,232
Noninterest income	66,621			44,934		509			112,064
Noninterest expense	162,034			77,863		6,526			246,423
Income tax expense (benefit)	11,613			12,813		3,608			28,034
Income (loss) after income tax expense (benefit)	36,942			45,287		6,610			88,839
Income attributable to non-controlling interest	—			2,643		—			2,643
Preferred stock dividends	—			—		2,494			2,494
Net income (loss) available to common shareholders	$	36,942		$	42,644	$	4,116		$	83,702
Total assets	$	8,226,522		$	11,553,453	$	3,124,810		$	22,904,785


(1)	As a result of the Merger, we recorded $1.1 billion of goodwill. Due to the timing of the Merger, we are in the process of completing our analysis of the allocation of goodwill across business segments, and, therefore, goodwill is presented as part of Enterprise Services at September 30, 2019.



(In thousands)	Consumer Banking		Commercial Banking		Enterprise Services			Consolidated
At or For the Nine Months Ended September 30, 2019
Net interest income (expense)	$	470,738	$	350,848	$	58,693		$	880,279
Provision for credit losses	16,406		34,473		—			50,879
Net interest income (expense) after provision for credit losses	454,332		316,375		58,693			829,400
Noninterest income	183,767		132,883		(9,170		)	307,480
Noninterest expense	520,007		267,147		128,390			915,544
Income tax expense (benefit)	26,529		30,271		(27,934		)	28,866
Income (loss) after income tax expense (benefit)	91,563		151,840		(50,933		)	192,470
Income attributable to non-controlling interest	—		9,401		—			9,401
Preferred stock dividends	—		—		7,481			7,481
Net income (loss) available to common shareholders	$	91,563	$	142,439	$	(58,414	)	$	175,588
Total assets	$	14,906,457	$	22,076,203	$	8,709,851		$	45,692,511
At or For the Nine Months Ended September 30, 2018
Net interest income (expense)	$	429,132	$	289,315	$	36,895		$	755,342
Provision for credit losses	18,900		8,974		—			27,874
Net interest income (expense) after provision for credit losses	410,232		280,341		36,895			727,468
Total noninterest income	196,827		132,794		908			330,529
Total noninterest expense	511,915		229,094		23,433			764,442
Income tax expense (benefit)	23,037		40,505		2,541			66,083
Income (loss) after income tax expense (benefit)	72,107		143,536		11,829			227,472
Income attributable to non-controlling interest	—		8,766		—			8,766
Preferred stock dividends	—		—		9,094			9,094
Impact of preferred stock redemption	—		—		3,481			3,481
Net income (loss) available to common shareholders	$	72,107	$	134,770	$	(746	)	$	206,131
Total assets	$	8,226,522	$	11,553,453	$	3,124,810		$	22,904,785