...Improving Operating Performance: TCF Financial Corporation's (TCF) earnings performance has been strong with the ROAA averaging 1.01% over the last eight quarters as management continues to progress to their 125bp ROAA target. Fitch expects TCF's balance sheet structure of short-dated assets and its low-balance high-volume deposits to react positively to rising rates from a liquidity and earnings perspective. Weaker Asset Quality than Peers: While showing improvement, TCF's asset quality metrics as measured by the nonperforming asset (NPA) ratio (inclusive of accruing TDRs) remains at the high end for the peer group at 1.47% at 2Q17. Fitch notes that this is partially attributable to accruing TDRs stemming from the legacy consumer real estate portfolio and to a lesser extent the commercial business. National Lending Platform: Although TCF's earnings have benefited from attractive yields in the national lending business, Fitch considers credit performance in TCF's recent national lending...
