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TCF Financial Estimates Impact of Tax Reform, Announces Bonuses

January 02, 2018, 07:19 AM
Filed Under: Industry News

TCF Financial Corporation announced that as a result of the tax reform legislation enacted December 22, 2017, it will be required to revalue its deferred tax assets and deferred tax liabilities to account for the future impact of lower corporate tax rates on these deferred amounts.

Based on preliminary analysis, TCF expects to record a one-time net tax benefit in an estimated amount of between $120 million and $140 million primarily related to the revaluation of these deferred tax items. This decrease to income tax expense will be reflected in TCF’s operating results for the fourth quarter of 2017. TCF has not completed its processes to determine the actual net tax benefits related to many of the impacted items, and the ultimate amount of the actual net tax benefit will be based upon a number of factors, including final net deferred tax liabilities as of December 31, 2017, the completion of TCF’s consolidated financial statements as of and for the year ending December 31, 2017 and the completion of TCF’s 2017 tax returns.

As a result of the Tax Cuts and Jobs Act, TCF will provide approximately $5 million in one-time bonuses to eligible team members—$1,000 to full-time team members and $500 to part-time team members—who earned less than $100,000 in total compensation during 2017, totaling 80 percent of its workforce. Additionally, TCF will donate $5 million to TCF Foundation to increase grants to nonprofit organizations in the communities it serves, including increasing its match of team member contributions to nonprofit organizations from 100 percent to 200 percent in 2018.

TCF cautions that the estimates presented in this press release are preliminary and subject to change. These preliminary estimates of the impact of tax reform on TCF should not be viewed as a substitute for full financial statements prepared in accordance with U.S. generally accepted accounting principles, and are not necessarily indicative of the results to be achieved for any future periods. The estimates have been prepared by management and TCF’s independent auditors have not completed their audit or review of such information.

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