Wednesday, TCF Financial Corp.(TCB), the holding company for TCF National Bank and TCF National Bank Arizona, reported a decline in second quarter earnings from a year ago. Earnings, however, topped analysts estimate, while revenues grew year-on-year.
TCF Financial's net income available to common stockholders declined to $10.33 million or $0.08 per share for the second quarter from $23.7 million or $0.19 per share in the year-ago quarter. Net income for the quarter was $23.54 million, compared to $23.70 million a year ago.
The Wayzata, Minnesota-based TCF said earnings for the quarter, excluding non-cash deemed preferred stock dividend, were $0.18 per share, compared to $0.19 per share in the prior-year period. On average, 17 analysts polled by Thomson Reuters expected the company to earn $0.10 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter grew 8.3% to $296.83 million from $274.18 million a year ago, exceeding the consensus revenue estimate of $263.82 million.
William Cooper, TCF chairman and chief executive officer said, "At the heart of our core business, we saw continued positive momentum in revenues with increasing margin and fee income along with strong growth in deposit accounts and balances as well as loans and leases."
Net interest income rose 3.2% to $156.5 million, up from $151.56 million a year ago, while total non-interest income advanced 14.5% to $140.37 million from $122.62 million. Total fees and other revenues were up 6.8% to $129.81 million from $121.50 million last year. Gain on securities during the quarter amounted to $10.56 million, an increase from $1.12 million last year.
For the quarter, total non-interest expenses increased 16.5% to $196.55 million from $168.73 million in the comparable period last year.
During the quarter, total average deposits rose 15.2% to $1.5 billion from a year ago, and $795.4 million from the first quarter of 2009. TCF said the increase resulted primarily from strong growth in savings deposits, as several initiatives involving products, pricing and marketing efforts, partially offset by declines in certificates of deposits as a result of lower pricing.
Average loans and leases increased by $1.1 billion, or 8.7% year-on-year.
Provision for credit losses was $61.9 million for the quarter, down from $62.9 million a year ago and up from $43.7 million in the first quarter of 2009.
Net income available to common stockholders for the first six months was $31.79 million or $0.25 per share, down from $71.13 million or $0.57 per share in the corresponding period last year.
TCF recorded total revenues of $556.52 million in the six-month period, up 2.2% from $544.31 million in the corresponding period a year ago. Net interest income rose 2.5% to $301.88 million, up from $294.39 million a year ago, while total non-interest income grew 1.9% to $254.65 million from $249.92 million in the previous year period.
The company declared a regular quarterly cash dividend of 0.05 per share, payable on August 31, 2009 to stockholders of record at the close of business on July 31, 2009.
TCB is trading at $14.18, down $0.13 or 0.91%, on a volume of about 1.74 million shares.
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