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Press Release

TCF Reports Quarterly Net Income of $37.9 Million, or 23 Cents Per Share

Company Release - 10/25/2013 8:00 AM ET

WAYZATA, Minn.--(BUSINESS WIRE)-- TCF Financial Corporation (NYSE:TCB):

THIRD QUARTER HIGHLIGHTS

  • Earnings per share of 23 cents, up 17 cents from the third quarter of 2012
  • Core revenue(1) of $305.9 million, up 2.1 percent from the third quarter of 2012
  • Provision for credit losses of $24.6 million, down 74.4 percent from the third quarter of 2012
  • Non-accrual loans and leases of $282.9 million, down 32.9 percent from the third quarter of 2012
  • Loan and lease originations increased $595.5 million, or 23.9 percent, from the third quarter of 2012
  • Average deposits increased $758.2 million, or 5.6 percent, from the third quarter of 2012
  • Announced common and preferred stock dividend payments payable November 29, 2013 and December 2, 2013, respectively
                                   
Summary of Financial Results                           Table 1
(Dollars in thousands, except per-share data)           Percent Change      
3Q 2Q 3Q

 

3Q13 vs

  3Q13 vs YTD YTD Percent
2013     2013     2012     2Q13     3Q12     2013    

2012 (2)

Change
Net income (loss) $ 37,948 $ 34,057 $ 9,322 11.4 % N.M. % $ 97,455 $ (242,041 ) N.M. %
Net interest income 199,627 202,044 200,559 (1.2 ) (0.5 ) 600,762 578,956 3.8
Diluted earnings (loss) per common share .23 .21 .06 9.5 N.M. .60 (1.52 ) N.M.
 

Financial Ratios (3)

Pre-tax pre-provision profit return on average assets (4)

2.04 % 2.04 % 2.61 % 2.00 % (1.32 ) %
Return on average assets .97

 

.90

 

.30

 

.86

 

(1.73 )

 

Return on average common equity 9.28 8.39 2.36 8.03 (19.50 )
Net interest margin 4.62 4.72 4.85 4.69 4.61

Net charge-offs as a percentage of average loans and leases

.71 .70 2.74 .82 1.67
 
N.M. Not Meaningful                                                  
 
(1)  

Core revenue is calculated as total revenue less gains (losses) on sales of securities of $(80) thousand and $13 million at September 30, 2013 and September 30, 2012, respectively.

(2) Includes a net, after-tax charge of $295.8 million, or $1.87 per common share, related to the balance sheet repositioning.
(3) Annualized.
(4)

Pre-tax pre-provision profit (''PTPP'') is calculated as total revenues less non-interest expense. Year-to-date 2012 PTPP excludes the non-recurring net loss of $473.8 million related to the balance sheet repositioning completed in the first quarter of 2012.

 

TCF Financial Corporation (“TCF” or the “Company”) (NYSE:TCB) today reported net income for the third quarter of 2013 of $37.9 million, compared with $9.3 million for the third quarter of 2012, and $34.1 million for the second quarter of 2013. Diluted earnings per common share was 23 cents for the third quarter of 2013, compared with 6 cents for the third quarter of 2012, and 21 cents for the second quarter of 2013.

TCF reported net income for the first nine months of 2013 of $97.5 million, compared with a net loss of $242 million for the same period in 2012 (inclusive of a net after-tax charge of $295.8 million, or $1.87 per common share, related to a balance sheet repositioning involving certain investments and borrowings in the first quarter of 2012 and a net after-tax gain of $8.2 million, or 5 cents per common share, related to the sale of Visa® Class B stock in the second quarter of 2012). Diluted earnings per common share was 60 cents for the first nine months of 2013, compared with a diluted loss per common share of $1.52 for the same period in 2012 (earnings per common share of 30 cents excluding the balance sheet repositioning charge and the net gain related to the sale of Visa Class B stock).

Chairman’s Statement

“TCF’s credit quality showed steady improvement for the fourth consecutive quarter,” said William A. Cooper, Chairman and Chief Executive Officer. “The third quarter was highlighted by meaningful reductions in provision, delinquencies, and commercial classified assets.”

“During the quarter, TCF continued to take advantage of loan and lease origination opportunities. Meanwhile, TCF’s fifth consecutive quarter of net checking account growth has offset some of the banking fee pressure caused by a change in consumer behavior leading to reduced transaction volumes.

“I am pleased by the progress we have made in executing on our business strategies over the past two years. There is more work to be done, but we believe TCF is now in a much better position for future success, especially as interest rates eventually begin to rise.”

     
Revenue
                                                   
Total Revenue                             Table 2  
          Percent Change
3Q 2Q 3Q 3Q13 vs   3Q13 vs YTD YTD Percent
(Dollars in thousands)     2013       2013     2012     2Q13     3Q12     2013