October 20, 2011 08:00 AM Eastern Daylight Time
THIRD QUARTER HIGHLIGHTS
- Diluted earnings per common share of 20 cents
- Net income of $31.7 million
- Net interest margin of 3.96 percent
- Average deposits increased $113.3 million from the second quarter of 2011
- Non-performing assets declined $20.1 million from the second quarter of 2011
- Announced quarterly cash dividend of 5 cents per common share, payable November 30, 2011
WAYZATA, Minn.--(BUSINESS WIRE)--TCF Financial Corporation (NYSE: TCB):
“TCF’s 66th consecutive quarter of profitability showed an increase in revenue from the second quarter, a decrease in operating expenses and continued improvement in credit metrics as balances of both non-accrual loans and leases and real estate owned decreased in the quarter”
| Earnings Summary | Table 1 | |||||||||||||||||||||||
| ($ in thousands, except per-share data) | Percent Change | |||||||||||||||||||||||
3Q
2011 |
2Q
2011 |
3Q
2010 |
3Q11 vs
2Q11 |
3Q11 vs
3Q10 |
YTD
2011 |
YTD
2010 |
Percent
Change | |||||||||||||||||
| Net income | $31,717 | $29,837 | $36,893 | 6.3 | % | (14.0 | )% | $91,240 | $115,839 | (21.2 | )% | |||||||||||||
| Diluted earnings per common share | .20 | .19 | .26 | 5.3 | (23.1 | ) | .59 | .84 | (29.8 | ) | ||||||||||||||
Financial Ratios (1)
| ||||||||||||||||||||||||
| Return on average assets | .69 | % | .67 | % | .84 | % | .68 | % | .87 | % | ||||||||||||||
| Return on average common equity | 7.00 | 6.86 | 9.95 | 7.20 | 11.11 | |||||||||||||||||||
| Net interest margin | 3.96 | 4.02 | 4.14 | 4.01 | 4.18 | |||||||||||||||||||
| Net charge-offs as a percentage of | 1.48 | 1.19 | 1.58 | 1.39 | 1.37 | |||||||||||||||||||
| average loans and leases | ||||||||||||||||||||||||
| (1) Annualized. | ||||||||||||||||||||||||
TCF Financial Corporation (“TCF”) (NYSE: TCB) today reported net income for the third quarter of 2011 of $31.7 million, compared with $36.9 million in the third quarter of 2010 and $29.8 million in the second quarter of 2011. Diluted earnings per common share was 20 cents for the third quarter of 2011, compared with 26 cents in the third quarter of 2010 and 19 cents in the second quarter of 2011.
Net income for the first nine months of 2011 was $91.2 million, compared with $115.8 million for the same 2010 period. Diluted earnings per common share for the first nine months of 2011 was 59 cents, compared with 84 cents for the same 2010 period.
TCF declared a quarterly cash dividend of five cents per common share payable on November 30, 2011 to stockholders of record at the close of business on October 28, 2011.
Chairman’s Statement
“TCF’s 66th consecutive quarter of profitability showed an increase in revenue from the second quarter, a decrease in operating expenses and continued improvement in credit metrics as balances of both non-accrual loans and leases and real estate owned decreased in the quarter,” said William A. Cooper, TCF Chairman and Chief Executive Officer. “Our continued hard work on the credit front is delivering results despite little to no help from the economy as unemployment rates remain elevated and job growth is stagnant. Increased liquidity is negatively impacting TCF’s net interest margin as the balance sheet contracted slightly during the quarter. But while these near-term challenges are considerable, the company is taking significant steps to improve its positioning.
“During the quarter, we announced a significant agreement with BRP, one of the world’s premier manufacturers of powersports equipment, which we anticipate will deliver significant loan balances in both the U.S. and Canada to our inventory finance business beginning in 2012. We also announced the signing of a definitive agreement to acquire Gateway One Lending & Finance that will provide additional growth and diversity for our specialty finance business through a new consumer-oriented product – automobile lending. We expect both of these actions will help to grow the loan and lease portfolio, improve its diversification by both geography and asset class and help TCF grow its revenue base going forward.
“Recently, we began making changes to our checking account lineup including the implementation of the Daily Overdraft Service product in all markets. We believe this product, which eliminates per-item NSF fees at TCF, has the best long-term potential for revenue growth and is straightforward and transparent to our customers. We will continue to evaluate and implement additional revenue-producing and expense reduction strategies throughout the company to mitigate lost revenues resulting from increased legislative, regulatory and compliance burdens.”
