Wayzata, Minn.-based TCF Financial Corp. will discontinue its indirect auto loan originations, effective Dec. 1.
The change is expected to cause fourth-quarter charges, after tax, of $73.4 million for goodwill and other intangibles and of $7.0 million to $12.0 million for restructuring-related items such as severance and asset impairment. Of those amounts, only $8.0 million to $16.0 million, pretax, are expected to result in future cash expenditures.
The changes will be substantially completed by the end of the first quarter of 2018. The company intends to continue servicing existing auto loans.
In addition, TCF's board authorized a buyback program for up to $150 million of the company's common stock. The program replaces the previous repurchase plan.
