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Allowance for Loan and Lease Losses and Credit Quality (Tables)
 9 Months Ended
Sep. 30, 2019
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]  
Rollforwards of the Allowance for Loan and Lease Losses The rollforwards of the allowance for loan and lease losses were as follows:
(In thousands)
Consumer Loan Portfolio
 
Commercial Loan and Lease Portfolio
 
Total Loans and Leases
At or For the Three Months Ended September 30, 2019
 
 
 
 
 
Balance, beginning of period
$
70,711

 
$
75,792

 
$
146,503

Charge-offs
(14,098
)
 
(21,449
)
 
(35,547
)
Recoveries
5,330

 
1,639

 
6,969

Net (charge-offs) recoveries
(8,768
)
 
(19,810
)
 
(28,578
)
Provision for credit losses
4,693

 
22,495

 
27,188

Other(1)
(23,849
)
 
(46
)
 
(23,895
)
Balance, end of period
$
42,787

 
$
78,431

 
$
121,218

At or For the Three Months Ended September 30, 2018
 
 
 
 
 
Balance, beginning of period
$
91,241

 
$
74,378

 
$
165,619

Charge-offs
(15,942
)
 
(3,506
)
 
(19,448
)
Recoveries
11,711

 
947

 
12,658

Net (charge-offs) recoveries
(4,231
)
 
(2,559
)
 
(6,790
)
Provision for credit losses
(847
)
 
3,117

 
2,270

Other(1)
(299
)
 
(179
)
 
(478
)
Balance, end of period
$
85,864

 
$
74,757

 
$
160,621

 
 
 
 
 
 
(In thousands)
Consumer Loan Portfolio
 
Commercial Loan and Lease Portfolio
 
Total Loans and Leases
At or For the Nine Months Ended September 30, 2019
 
 
 
 
 
Balance, beginning of period
$
80,017

 
$
77,429

 
$
157,446

Charge-offs
(43,922
)
 
(37,122
)
 
(81,044
)
Recoveries
15,840

 
3,890

 
19,730

Net (charge-offs) recoveries
(28,082
)
 
(33,232
)
 
(61,314
)
Provision for credit losses
16,644

 
34,235

 
50,879

Other(1)
(25,792
)
 
(1
)
 
(25,793
)
Balance, end of period
$
42,787

 
$
78,431

 
$
121,218

At or For the Nine Months Ended September 30, 2018
 
 
 
 
 
Balance, beginning of period
$
98,085

 
$
72,956

 
$
171,041

Charge-offs
(48,120
)
 
(9,381
)
 
(57,501
)
Recoveries
21,299

 
2,491

 
23,790

Net (charge-offs) recoveries
(26,821
)
 
(6,890
)
 
(33,711
)
Provision for credit losses
18,872

 
9,002

 
27,874

Other(1)
(4,272
)
 
(311
)
 
(4,583
)
Balance, end of period
$
85,864

 
$
74,757

 
$
160,621

(1)
Includes the transfer of the allowance for loan and lease losses to loans and leases held-for-sale (inclusive of the transfer of Legacy TCF auto loan portfolio for the three and nine months ended September 30, 2019).
Rollforwards of the Allowance for Loan and Lease Losses The rollforwards of the allowance for loan and lease losses were as follows:
(In thousands)
Consumer Loan Portfolio
 
Commercial Loan and Lease Portfolio
 
Total Loans and Leases
At or For the Three Months Ended September 30, 2019
 
 
 
 
 
Balance, beginning of period
$
70,711

 
$
75,792

 
$
146,503

Charge-offs
(14,098
)
 
(21,449
)
 
(35,547
)
Recoveries
5,330

 
1,639

 
6,969

Net (charge-offs) recoveries
(8,768
)
 
(19,810
)
 
(28,578
)
Provision for credit losses
4,693

 
22,495

 
27,188

Other(1)
(23,849
)
 
(46
)
 
(23,895
)
Balance, end of period
$
42,787

 
$
78,431

 
$
121,218

At or For the Three Months Ended September 30, 2018
 
 
 
 
 
Balance, beginning of period
$
91,241

 
$
74,378

 
$
165,619

Charge-offs
(15,942
)
 
(3,506
)
 
(19,448
)
Recoveries
11,711

 
947

 
12,658

Net (charge-offs) recoveries
(4,231
)
 
(2,559
)
 
(6,790
)
Provision for credit losses
(847
)
 
3,117

 
2,270

Other(1)
(299
)
 
(179
)
 
(478
)
Balance, end of period
$
85,864

 
$
74,757

 
$
160,621

 
 
 
 
 
 
(In thousands)
Consumer Loan Portfolio
 
Commercial Loan and Lease Portfolio
 
Total Loans and Leases
At or For the Nine Months Ended September 30, 2019
 
 
 
 
 
Balance, beginning of period
$
80,017

 
$
77,429

 
$
157,446

Charge-offs
(43,922
)
 
(37,122
)
 
(81,044
)
Recoveries
15,840

 
3,890

 
19,730

Net (charge-offs) recoveries
(28,082
)
 
(33,232
)
 
(61,314
)
Provision for credit losses
16,644

 
34,235

 
50,879

Other(1)
(25,792
)
 
(1
)
 
(25,793
)
Balance, end of period
$
42,787

 
$
78,431

 
$
121,218

At or For the Nine Months Ended September 30, 2018
 
 
 
 
 
Balance, beginning of period
$
98,085

 
$
72,956

 
$
171,041

Charge-offs
(48,120
)
 
(9,381
)
 
(57,501
)
Recoveries
21,299

 
2,491

 
23,790

Net (charge-offs) recoveries
(26,821
)
 
(6,890
)
 
(33,711
)
Provision for credit losses
18,872

 
9,002

 
27,874

Other(1)
(4,272
)
 
(311
)
 
(4,583
)
Balance, end of period
$
85,864

 
$
74,757

 
$
160,621

(1)
Includes the transfer of the allowance for loan and lease losses to loans and leases held-for-sale (inclusive of the transfer of Legacy TCF auto loan portfolio for the three and nine months ended September 30, 2019).
Allowance for Loan and Lease Losses and Balances by Type of Allowance Methodology
The allowance for loan and lease losses and loans and leases outstanding by type of allowance methodology were as follows:
 
At September 30, 2019
(In thousands)
Consumer Loan Portfolio
 
Commercial Loan and Lease Portfolio
 
Total Loans and Leases
Allowance for loan and lease losses
 
 
 
 
 
Collectively evaluated for impairment
$
26,024

 
$
70,219

 
$
96,243

Individually evaluated for impairment
16,763

 
8,212

 
24,975

Total
$
42,787

 
$
78,431

 
$
121,218

Loans and leases outstanding
 
 
 
 
 

Collectively evaluated for impairment
$
11,016,429

 
$
21,956,151

 
$
32,972,580

Individually evaluated for impairment
132,900

 
111,559

 
244,459

PCI loans
79,737

 
213,976

 
293,713

Total
$
11,229,066

 
$
22,281,686

 
$
33,510,752

 
At December 31, 2018
(In thousands)
Consumer Loan Portfolio
 
Commercial Loan and Lease Portfolio
 
Total Loans and Leases
Allowance for loan and lease losses
 
 
 
 
 
Collectively evaluated for impairment
$
57,113

 
$
68,140

 
$
125,253

Individually evaluated for impairment
22,904

 
9,289

 
32,193

Total
$
80,017

 
$
77,429

 
$
157,446

Loans and leases outstanding
 
 
 
 
 
Collectively evaluated for impairment
$
7,285,753

 
$
11,587,373

 
$
18,873,126

Individually evaluated for impairment
128,159

 
67,919

 
196,078

PCI loans
—

 
3,816

 
3,816

Total
$
7,413,912

 
$
11,659,108

 
$
19,073,020
Schedule of Accruing and Non-accruing Loans and Leases TCF's accruing and nonaccrual loans and leases were as follows:
(In thousands)
Current
 
30-89 Days
 Delinquent
 and Accruing
 
90 Days or More
Delinquent 
and Accruing
 
Total
 Accruing
 
Nonaccrual
 
Total
At September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
Commercial loan and lease portfolio:
 

 
 

 
 

 
 
 
 

 
 
Commercial and industrial
$
10,615,519

 
$
49,595

 
$
2,241

 
$
10,667,355

 
$
55,039

 
$
10,722,394

Commercial real estate
8,677,350

 
39,023

 
8,054

 
8,724,427

 
26,518

 
8,750,945

Lease financing
2,551,326

 
29,123

 
2,421

 
2,582,870

 
11,503

 
2,594,373

Total commercial loan and lease portfolio
21,844,195

 
117,741

 
12,716

 
21,974,652

 
93,060

 
22,067,712

Consumer loan portfolio:
 

 
 

 
 

 
 

 
 

 
 

Residential mortgage
5,919,947

 
14,533

 
886

 
5,935,366

 
48,816

 
5,984,182

Consumer installment
1,557,320

 
3,667

 
6

 
1,560,993

 
636

 
1,561,629

Home equity
3,550,652

 
13,569

 
—

 
3,564,221

 
39,296

 
3,603,517

Total consumer loan portfolio
11,027,919

 
31,769

 
892

 
11,060,580

 
88,748

 
11,149,328

PCI loans(1)
261,082

 
16,578

 
16,052

 
293,712

 
—

 
293,712

Total
$
33,133,196

 
$
166,088

 
$
29,660

 
$
33,328,944

 
$
181,808

 
$
33,510,752

At December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Commercial loan and lease portfolio:
 

 
 

 
 

 
 
 
 

 
 
Commercial and industrial
$
6,176,341

 
$
13,653

 
$
760

 
$
6,190,754

 
$
26,061

 
$
6,216,815

Commercial real estate
2,903,795

 
—

 
—

 
2,903,795

 
4,518

 
2,908,313

Lease financing
2,498,811

 
21,477

 
1,882

 
2,522,170

 
7,993

 
2,530,163

Total commercial loan and lease portfolio
11,578,947

 
35,130

 
2,642

 
11,616,719

 
38,572

 
11,655,291

Consumer loan portfolio:
 

 
 

 
 

 
 

 
 

 
 

Residential mortgage
2,291,435

 
10,014

 
1,275

 
2,302,724

 
33,111

 
2,335,835

Consumer installment
1,951,302

 
40,340

 
3,349

 
1,994,991

 
8,581

 
2,003,572

Home equity
3,042,968

 
5,883

 
—

 
3,048,851

 
25,654

 
3,074,505

Total consumer loan portfolio
7,285,705

 
56,237

 
4,624

 
7,346,566

 
67,346

 
7,413,912

PCI loans(1)
3,639

 
—

 
178

 
3,817

 
—

 
3,817

Total
$
18,868,291

 
$
91,367

 
$
7,444

 
$
18,967,102

 
$
105,918

 
$
19,073,020

(1)
PCI loans that are not performing in accordance with contractual terms are not reported as nonaccrual because these loans were recorded at their net realizable value based on the principal and interest TCF expects to collect on these loans.
Financing Receivable Credit Quality Indicators
The following schedule presents the recorded investment of loans and leases by credit risk categories.
(In thousands)
Pass
 
Special Mention
 
Substandard
 
Doubtful
 
Total
At September 30, 2019
 
 
 
 
 
 
 
 
 
Commercial loan and lease portfolio:
 

 
 

 
 
 
 
 
 
Commercial and industrial
$
10,307,229

 
$
309,440

 
$
193,865

 
$
—

 
$
10,810,534

Commercial real estate
8,645,910

 
150,132

 
80,737

 
—

 
8,876,779

Lease financing
2,540,637

 
27,007

 
26,729

 
—

 
2,594,373

Total commercial loan and lease portfolio
21,493,776

 
486,579

 
301,331

 
—

 
22,281,686

Consumer loan portfolio:
 
 
 
 
 
 
 
 
 
Residential mortgage
6,001,380

 
1,543

 
54,481

 
—

 
6,057,404

Consumer installment
1,561,506

 
—

 
746

 
—

 
1,562,252

Home equity
3,565,763

 
1,284

 
42,363

 
—

 
3,609,410

Total consumer loan portfolio
11,128,649

 
2,827

 
97,590

 
—

 
11,229,066

Total loans and leases
$
32,622,425

 
$
489,406

 
$
398,921

 
$
—

 
$
33,510,752

At December 31, 2018
 
 
 
 
 
 
 
 
 
Commercial loan and lease portfolio:
 

 
 

 
 
 
 
 
 
Commercial and industrial
$
5,955,713

 
$
158,296

 
$
106,623

 
$
—

 
$
6,220,632

Commercial real estate
2,869,711

 
12,864

 
25,738

 
—

 
2,908,313

Lease financing
2,480,964

 
25,195

 
24,004

 
—

 
2,530,163

Total commercial loan and lease portfolio
11,306,388

 
196,355

 
156,365

 
—

 
11,659,108

Consumer loan portfolio:
 
 
 
 
 
 
 
 
 
Residential mortgage
2,294,740

 
3,606

 
37,489

 
—

 
2,335,835

Consumer installment
1,981,844

 
1,302

 
20,426

 
—

 
2,003,572

Home equity
3,043,296

 
3,747

 
27,462

 
—

 
3,074,505

Total consumer loan portfolio
7,319,880

 
8,655

 
85,377

 
—

 
7,413,912

Total loans and leases
$
18,626,268

 
$
205,010

 
$
241,742

 
$
—

 
$
19,073,020
Schedule of TDR Loans
The following table summarizes the TDR loans that defaulted during the periods presented that were modified during the respective reporting period or within one year of the beginning of the respective reporting period. TCF considers a loan to have defaulted when under the modified terms it becomes 90 or more days delinquent, has been transferred to nonaccrual status, has been charged down or has been transferred to other real estate owned or repossessed and returned assets.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In thousands)
2019
 
2018
 
2019
 
2018
Defaulted TDR loan balances modified during the applicable period
 
 
 
 
 
 
 
Commercial loan and lease portfolio:
 
 
 
 
 
 
 
Commercial and industrial
$
—

 
$
87

 
$
297

 
$
4,784

Total commercial loan and lease portfolio
—

 
87

 
297

 
4,784

Consumer loan portfolio:
 

 
 

 
 

 
 

Residential mortgage
212

 
778

 
964

 
2,556

Consumer installment
452

 
217

 
1,555

 
950

Home equity
82

 
176

 
328

 
435

Total consumer loan portfolio
746

 
1,171

 
2,847

 
3,941

Defaulted TDR loan balances
$
746

 
$
1,258

 
$
3,144

 
$
8,725


The following table presents the recorded investment of loan modifications first classified as TDRs during the periods presented:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
(In thousands)
Pre-modification Investment
 
Post-modification Investment
 
Pre-modification Investment
 
Post-modification Investment
 
Pre-modification Investment
 
Post-modification Investment
 
Pre-modification Investment
 
Post-modification Investment
Commercial loan and lease portfolio:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
—

 
$
—

 
$
11

 
$
11

 
$
—

 
$
—

 
$
11

 
$
11

Commercial real estate
—

 
—

 
—

 
—

 
31,518

 
31,518

 
5,228

 
5,228

Total commercial loan and lease portfolio
—

 
—

 
11

 
11

 
31,518

 
31,518

 
5,239

 
5,239

Consumer loan portfolio:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
1,724

 
1,723

 
2,132

 
2,119

 
4,023

 
4,016

 
4,385

 
4,315

Home equity
1,115

 
1,115

 
983

 
983

 
3,589

 
3,577

 
1,792

 
1,790

Total consumer loan portfolio
2,839

 
2,838

 
3,115

 
3,102

 
7,612

 
7,593

 
6,177

 
6,105

Total
$
2,839

 
$
2,838

 
$
3,126

 
$
3,113

 
$
39,130

 
$
39,111

 
$
11,416

 
$
11,344


The following table presents TDR loans:
 
At September 30, 2019
 
At December 31, 2018
(In thousands)
Accruing
TDR Loans
 
Nonaccrual TDR Loans
 
Total
TDR Loans
 
Accruing
TDR Loans
 
Nonaccrual TDR Loans
 
Total
TDR Loans
Commercial loan and lease portfolio
$
10,068

 
$
1,953

 
$
12,021

 
$
12,665

 
$
6,153

 
$
18,818

Consumer loan portfolio
75,836

 
19,284

 
95,120

 
85,794

 
22,554

 
108,348

Total
$
85,904

 
$
21,237

 
$
107,141

 
$
98,459

 
$
28,707

 
$
127,166
Information on Impaired Loans and Leases
Information on impaired loans and leases at September 30, 2019 and information on impaired loans at December 31, 2018 was as follows:
 
At September 30, 2019
 
At December 31, 2018
(In thousands)
Unpaid
Contractual
Balance
 
Loan and Lease Balance
 
Related
Allowance
Recorded
 
Unpaid
Contractual
Balance
 
Loan Balance
 
Related
Allowance
Recorded
Impaired loans and leases with an allowance recorded:
 
 

 
 

 
 

 
 

 
 

Commercial loan and lease portfolio:
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
27,748

 
$
24,775

 
$
5,151

 
$
35,444

 
$
32,326

 
$
6,354

Commercial real estate
4,257

 
3,922

 
330

 
4,905

 
4,474

 
1,108

Lease financing
11,503

 
11,503

 
2,731

 
—

 
—

 
—

Total commercial loan and lease portfolio
43,508

 
40,200

 
8,212

 
40,349

 
36,800

 
7,462

Consumer loan portfolio:
 

 
 

 
 

 
 

 
 

 
 

Residential mortgage
81,658

 
78,247

 
13,630

 
63,004

 
60,172

 
17,216

Consumer installment
—

 
—

 
—

 
919

 
647

 
81

Home equity
30,584

 
29,228

 
2,916

 
27,386

 
25,836

 
5,288

Total consumer loan portfolio
112,242

 
107,475

 
16,546

 
91,309

 
86,655

 
22,585

Total impaired loans and leases with an allowance recorded
155,750

 
147,675

 
24,758

 
131,658

 
123,455

 
30,047

Impaired loans and leases without an allowance recorded:
 
 

 
 

 
 

 
 

 
 

Commercial loan and lease portfolio:
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
56,284

 
36,409

 
—

 
2,239

 
2,237

 
—

Commercial real estate
63,069

 
34,950

 
—

 
4,275

 
4,208

 
—

Total commercial loan and lease portfolio
119,353

 
71,359

 
—

 
6,514

 
6,445

 
—

Consumer loan portfolio:
 

 
 

 
 

 
 

 
 

 
 

Residential mortgage
27,420

 
19,370

 
—

 
11,636

 
9,494

 
—

Consumer installment
1,878

 
635

 
—

 
15,400

 
10,770

 
—

Home equity
16,771

 
5,420

 
—

 
10,620

 
1,429

 
—

Total consumer loan portfolio
46,069

 
25,425

 
—

 
37,656

 
21,693

 
—

Total impaired loans and leases without an allowance recorded
165,422

 
96,784

 
—

 
44,170

 
28,138

 
—

Total impaired loans and leases
$
321,172

 
$
244,459

 
$
24,758

 
$
175,828

 
$
151,593

 
$
30,047







The average balance of impaired loans and leases and interest income recognized on impaired loans and leases and the average loan balance of impaired loans and interest income recognized on impaired loans were as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
(In thousands)
Average Loan and Lease Balance
 
Interest Income Recognized
 
Average Loan Balance
 
Interest Income Recognized
 
Average Loan and Lease Balance
 
Interest Income Recognized
 
Average Loan Balance
 
Interest Income Recognized
Impaired loans and leases with an allowance recorded
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial loan and lease portfolio:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial and industrial
$
22,845

 
$
3

 
$
22,917

 
$
49

 
$
28,551

 
$
32

 
$
15,213

 
$
251

Commercial real estate
4,175

 
51

 
5,192

 
—

 
4,198

 
120

 
5,929

 
—

Lease financing
12,195

 
55

 
—

 
—

 
5,751

 
117

 
8,552

 
—

Total commercial loan and lease portfolio
39,215

 
109

 
28,109

 
49

 
38,500

 
269

 
29,694

 
251

Consumer loan portfolio:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
77,852

 
770

 
60,737

 
380

 
69,209

 
1,864

 
69,268

 
1,221

Consumer installment
289

 
—

 
454

 
—

 
324

 
—

 
713

 
—

Home equity
30,225

 
94

 
26,462

 
301

 
27,532

 
681

 
29,583

 
1,326

Total consumer loan portfolio
108,366

 
864

 
87,653

 
681

 
97,065

 
2,545

 
99,564

 
2,547

Total impaired loans and leases with an allowance recorded
$
147,581

 
$
973

 
$
115,762

 
$
730

 
$
135,565

 
$
2,814

 
$
129,258

 
$
2,798

Impaired loans and leases without an allowance recorded
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial loan and lease portfolio:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial and industrial
$
20,448

 
$
37

 
$
403

 
$
31

 
$
19,323

 
$
129

 
$
1,510

 
$
136

Commercial real estate
39,222

 
437

 
4,315

 
58

 
19,579

 
1,087

 
4,385

 
174

Lease financing
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total commercial loan and lease portfolio
59,670

 
474

 
4,718

 
89

 
38,902

 
1,216

 
5,895

 
310

Consumer loan portfolio:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
12,609

 
121

 
9,982

 
160

 
14,431

 
450

 
10,013

 
502

Consumer installment
6,476

 
83

 
8,757

 
77

 
5,703

 
256

 
8,630

 
211

Home equity
3,551

 
23

 
1,683

 
55

 
3,425

 
110

 
1,648

 
177

Total consumer loan portfolio
22,636

 
227

 
20,422

 
292

 
23,559

 
816

 
20,291

 
890

Total impaired loans and leases without an allowance recorded
82,306

 
701

 
25,140

 
381

 
62,461

 
2,032

 
26,186

 
1,200

Total impaired loans and leases
$
229,887

 
$
1,674

 
$
140,902

 
$
1,111

 
$
198,026

 
$
4,846

 
$
155,444

 
$
3,998
Schedule of Other Real Estate Owned and Repossessed and Returned Assets Other real estate owned and repossessed and returned assets were as follows:
(In thousands)
At September 30, 2019
 
At December 31, 2018
Other real estate owned
$
27,638

 
$
17,403

Repossessed and returned assets
14,598

 
14,574

Consumer loans in process of foreclosure
15,509

 
15,540