...Outlook Negative: TCF Financial Corporation`s (TCB) ratings were affirmed at BBB¡` in February 2014. TCB`s ratings remain toward the bottom of the peer group reflecting its relatively higher risk profile across many financial metrics as well as a larger risk appetite relative to the peer group. National Lending Portfolio: TCB continues to put focus on growth in its national lending loan portfolio in an effort to differentiate itself from other mid-sized banks. Auto loans on balance sheet have doubled from a year ago. Average balances of inventory finance are up 10% year over year. The company`s national lending portfolio now makes up around 40% of its overall portfolio. Losses relating to auto and inventory finance have been in line with industry standards recently but these portfolios have yet to fully season or go through a full credit cycle. Asset Quality Weighs on Rating: TCB`s weak asset quality continues to be a primary ratings driver. Even with NPA levels dropping 11% year over year,...
