Menu
Email page PDF view Print view Email Alert Social Media Sharing

Press Release

TCF Reports 65th Consecutive Quarter of Net Income – Earns $29.8 Million

Company Release - 7/21/2011 8:00 AM ET

SECOND QUARTER HIGHLIGHTS

  • Diluted earnings per common share of 19 cents
  • Net income of $29.8 million
  • Net interest margin of 4.02 percent
  • Average deposits increased $227.7 million, or 1.9 percent, from the first quarter of 2011
  • Announced quarterly cash dividend of 5 cents per common share, payable August 31, 2011

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

Earnings Summary      

 

           

 

         

Table 1

($ in thousands, except per-share data)         Percent Change      
2Q 1Q 2Q

2Q11 vs

 

2Q11 vs

YTD YTD

Percent

2011   2011     2010    

1Q11

 

2Q10

  2011   2010  

Change

Net income $ 29,837 $ 29,686 $ 45,025

.5

%

(33.7

)

%

$ 59,523 $ 78,946

(24.6

)

%

Diluted earnings per common share

.19

.20

.32

(5.0

)

(40.6

)

.39

.58

(32.8

)

 

Financial Ratios (1)

Return on average assets

.67

%

.66

% 1.02 %

.67

%

.89

%
Return on average common equity 6.86 7.84 12.71 7.32 11.75
Net interest margin 4.02 4.06 4.19 4.04

4.20

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

1.19 1.51

1.30

1.35 1.26
 
(1) Annualized.
 

TCF Financial Corporation (“TCF”) (NYSE:TCB) today reported net income for the second quarter of 2011 of $29.8 million, compared with $45 million in the second quarter of 2010 and $29.7 million in the first quarter of 2011. Diluted earnings per common share was 19 cents for the second quarter of 2011, compared with 32 cents in the second quarter of 2010 and 20 cents in the first quarter of 2011.

Net income for the first six months of 2011 was $59.5 million, compared with $78.9 million for the same 2010 period. Diluted earnings per common share for the first six months of 2011 was 39 cents, compared with 58 cents for the same 2010 period.

TCF declared a quarterly cash dividend of five cents per common share payable on August 31, 2011 to stockholders of record at the close of business on July 29, 2011.

Chairman’s Statement

“TCF’s 65th consecutive quarter of profitability saw many encouraging developments including favorable overall credit trends and strong new checking account production,” said William A. Cooper, TCF Chairman and Chief Executive Officer. “Much of the uncertainty surrounding the Durbin Amendment was also eliminated during the quarter following the Federal Reserve Board’s issuance of their final rule on debit card interchange and our decision to dismiss our lawsuit challenging the constitutionality of the Durbin Amendment. We feel our lawsuit served its purpose in reducing the final impact of the Durbin Amendment and are encouraged that the Federal Reserve Board’s final rule took into consideration many of the points we made in our case.

“Our focus remains on positioning TCF for future growth and success. This includes analyzing various opportunities to grow the balance sheet and working toward continuing our favorable overall credit quality trends. Certainly, we have continued to evaluate potential strategies to mitigate the lost debit card interchange revenue. We believe the industry will be making changes to products and fees in the fourth quarter and TCF expects to be implementing its new product and fee structures in the fourth quarter. I am confident that as the market continues to adjust to the new regulatory environment, we will find the appropriate solutions for the benefit of our shareholders and customers.”

     
Total Revenue   Table 2
  Percent Change      
($ in thousands)   2Q

2011

  1Q

2011

  2Q

2010

 

2Q11 vs
1Q11

 

2Q11 vs
2Q10

 

YTD

2011

 

YTD

2010

 

Percent
Change

Net interest income $ 176,150     $ 174,040     $ 176,499   1.2 %   (.2 )% $ 350,190     $ 351,161   (.3 )%
Fees and other revenue:    
Fees and service charges 56,396 53,513 77,845 5.4 (27.6 ) 109,909 144,017 (23.7 )
Card revenue 28,219 26,584 28,591 6.2 (1.3 ) 54,803 55,663 (1.5 )
ATM revenue   7,091       6,705       7,844   5.8 (9.6 )   13,796       14,866   (7.2 )
Total banking fees 91,706 86,802 114,280 5.6 (19.8 ) 178,508 214,546 (16.8 )

Leasing and equipment finance

22,279

 

26,750 20,528 (16.7 ) 8.5 49,029 40,880 19.9
Other   384       694   </