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TCF Financial Corporation Completes Acquisition of Gateway One Lending & Finance, LLC

December 01, 2011, 08:00 AM
Filed Under: Mergers & Acquisitions

TCF Financial Corporation (“TCF”) announced that its wholly-owned subsidiary, TCF National Bank, has completed its previously announced acquisition of Gateway One Lending & Finance, LLC (“Gateway One”). With the completion of the transaction, Gateway One is now a wholly-owned subsidiary of TCF National Bank.

Headquartered in Anaheim, California, Gateway One utilizes its more than 3,200 active dealer relationships to originate loans to consumers in 30 states, primarily on used automobiles. Through October 31, 2011, the company had originated $239 million in auto loans and had a managed portfolio of $412 million. As part of the acquisition, TCF is retaining Gateway One’s seasoned executive management team.

“We are pleased with the completion of this acquisition,” said Craig Dahl, Executive Vice President of TCF Wholesale Banking. “The addition of this national secured lending consumer product further diversifies our business and provides ample growth opportunities within the U.S. auto lending marketplace, the second largest consumer finance market in the U.S.  TCF has a proven track record of successfully integrating and operating nationally-oriented specialty finance businesses in the past and we expect additional success with Gateway One.”

J.P. Morgan Securities LLC acted as exclusive financial advisor to TCF. Morgan Keegan & Company, Inc. served as exclusive financial advisor to Gateway One.

About TCF Financial Corporation

TCF Financial Corporation is a Wayzata, Minnesota-based national bank holding company with $19.1 billion in total assets. TCF has 436 branches in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana, Arizona and South Dakota, providing retail and commercial banking services. TCF also conducts commercial leasing and equipment finance business in all 50 states and commercial inventory finance business in the U.S. and Canada. For more information about TCF, please visit





Category: Economy

Beige Book: Lending Activity Up Slightly; Economic Growth “Slow to Moderate”

Overall economic activity increased at a slow to moderate pace since the previous report across all Federal Reserve Districts except St. Louis, which reported a decline in economic activity.

Manufacturing activity expanded at a steady pace across most of the country.

Overall bank lending increased slightly since the previous report, and home refinancing grew at a more rapid pace. Changes in credit standards and credit quality varied across Districts. Districts mostly reported favorable agricultural conditions. Activity in the energy and mining sectors increased since the previous report.

Banking and Finance

Overall bank lending activity increased slightly since the previous report. New York, Philadelphia, Cleveland, and Kansas City reported increased loan demand. Chicago, St. Louis, Dallas, and San Francisco noted relatively unchanged loans. Atlanta saw soft loan demand as companies continued to reduce their debt loads and limit expansion and capital improvement plans.

Changes in credit standards and credit quality varied across Districts. Philadelphia noted that credit quality continued to improve but at a slower rate. Kansas City saw stable or improving loan quality. Dallas noted that the quality of loans outstanding continued to improve, with contacts reporting a decline in problem loans. San Francisco saw a slight improvement in overall credit quality. Cleveland, Chicago, and St. Louis noted relatively unchanged credit quality. Boston, Richmond, and Atlanta saw some tightening of standards. In New York, bankers reported declining delinquency rates for commercial and industrial loans, but no change in delinquencies for other loan categories.


The Federal Reserve Board:





Category: Economy

Credit Managers’ Index Remained Steady in November

The National Association of Credit Management (NACM) released its Credit Managers’ Index (CMI) for November which showed the index remained largely unchanged for the third consecutive month, dropping slightly to 53.5 from 53.7.

 “There is a story for just about everyone these days,” said Chris Kuehl, PhD, economist for the National Association of Credit Management (NACM). “If one is of a more pessimistic bent, there is the continued high rate of unemployment, the struggles in the housing sector and the sense that nobody in the political realm has a clue what to do about any of this. There is the mess in Europe, the gyrations in stocks and consumer polls that suggest that vast numbers of people are in bed with the covers pulled over their heads. If you tend toward optimistic, there is something for you as well, especially recently.”

The report indicates there is also evidence that manufacturers are setting up to do far more capital spending than in past years. The most negative news came in sales, which tumbled from the 61.4 high reached in September to 58.2 in November—the lowest reading in the last year. The decline was seen across the board in both the manufacturing and service sectors. Some of this is to be expected as the end of the year draws closer, and there is reason to expect gains in the months to come if the data on capital expenditure planning is reliable.

Other favorable factors carried better news. Dollar collections improved marginally from 56.8 to 56.9, which marks the second best performance since July behind the jump to 57.8 in September.

Even better news came in the amount of credit extended, which moved from 61.9 to 62.4, higher than any month since April. Overall, the index of favorable factors faded slightly from 59.5 to 58.8. This is not a dramatic decline, but it takes the index to levels seen in the depths of the summer, which is a bit of a concern.

There was better news in terms of unfavorable factors, suggesting that fewer companies are in financial distress. This is partly the result of an economic rebound and partly due to the fact that those companies in trouble months ago have either self-corrected or have gone out of business. The index did not shift dramatically, but it moved in the right direction as it moved from 49.9 to 50.1

Most indicators were pretty stable. Rejections of credit applications trended down slightly from 50.2 to 49.5, suggesting that credit remains pretty tight. There was a slight improvement in dollars beyond terms from 47.6 to 48, but it remains under the all-important 50 mark.

The biggest change was in the filings for bankruptcy number. There was a substantial improvement from 53.8 to 56.7 and that is the best performance since May. The indication is that those companies weakened by the recession have already fallen by the wayside and, for the most part, every industry is now working with the survivors. “This is not to say that they don’t have their own financial issues,” explained Kuehl, “but, going forward, many companies will see opportunities to gain market share from those competitors that have left the scene and that strengthens their ability to gain momentum in the coming year.”

CMI data has been collected and tabulated monthly since February 2002. The index, published since January 2003, is based on a survey of approximately 900 trade credit managers in the second half of each month, with about equal representation between the manufacturing and service sectors. The survey asks respondents to comment on whether they are seeing improvement, deterioration or no change for various favorable and unfavorable factors. There is representation from all states, except some of the less populated such as Vermont and Idaho.

National Association of Credit Management:


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