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TCF REPORTS 1993 FOURTH QUARTER AND FULL-YEAR EARNINGS, INCREASED DIVIDEND

 EARNINGS SUMMARY Three Months Ended Year Ended
 ($ in thousands, except 12/31/93 12/31/92 12/31/93 12/31/92
 per-share data)
 Before merger-related charges,
 net of tax:
 Income $12,135 $13,926 $45,865 $45,259
 Earnings per share .97 1.13 3.67 3.74
 Net income 12,135 13,926 37,971 45,259
 Earnings per share .97 1.13 3.04 3.74
 Dividends paid per share .1875 .125 .6875 .475
 Return on average assets .97% 1.11% .94%(a) .91%
 Return on average equity 16.76% 22.05% 16.59%(a) 19.53%
 (a) Before merger-related charges
 MINNEAPOLIS, Jan. 12 /PRNewswire/ -- TCF Financial Corporation (TCF) (NYSE: TCB), a $5 billion stock savings bank holding company based in Minneapolis, today reported that full-year earnings (excluding $7.9 million in after-tax merger-related restructuring charges associated with the April 1993 acquisition of Republic Capital Group, Inc., Milwaukee) increased to $45.9 million for 1993, as compared with $45.3 million for 1992. On a per-share basis, excluding merger-related charges, TCF earned $3.67 for 1993, compared with $3.74 for
1992. Net income for 1993 reflects a 43 percent tax rate, compared with a 22 percent tax rate in 1992. TCF's tax rate was lower in 1992 as a result of non-recurring tax benefits. Income before taxes and merger- related charges was $79.8 million for 1993, up 37 percent from $58.2 million for 1992. Net income for 1993 was $38 million.
 Net income for the 1993 fourth quarter was $12.1 million, or 97 cents per share, compared with 1992 fourth quarter earnings of $13.9 million, or $1.13 per share. Pre-tax earnings of $21.3 million for the 1993 fourth quarter were 36 percent higher than $15.7 million for the 1992 fourth quarter.
 Excluding merger-related charges, return on average assets was 0.94 percent for 1993, compared with 0.91 percent for 1992. On the same basis, return on average equity was 16.59 percent for 1993, compared with 19.53 percent for 1992. Return on average assets and return on average equity for the 1993 fourth quarter were 0.97 percent and 16.76 percent, respectively, compared with 1.11 percent and 22.05 percent for the 1992 fourth quarter.
 TCF Chairman and Chief Executive Officer William A. Cooper said TCF's 1993 performance reflected an improvement in core earnings as a result of the company's focus on community banking. "Our net interest income and net interest margin grew, and fee income increased by 12 percent to a record level. We maintained our credit quality and improved our capital position," said Cooper.
 Cooper noted that TCF now has more than $5 billion in assets, with 1993 acquisitions and account growth bringing the company's asset size to $3.4 billion in Minnesota, $659.4 million in Wisconsin, $665.6 million in Illinois, and $260.4 million in Michigan.
 Recognizing TCF's improved core earnings performance and capital ratios, TCF's board of directors intends to announce a 33 percent increase in the quarterly dividend on TCF common stock to 25 cents per share from 18.75 cents per share. The first dividend at the higher rate will be payable Feb. 28 to shareholders of record at the close of business Feb. 11. "This is our second dividend increase in nine months, which demonstrates the confidence we have in TCF and the importance we place on our shareholders," said Cooper.
 Net interest income was a record $184.4 million for 1993, up 10 percent from $167.2 million for 1992. For the 1993 fourth quarter, net interest income was $46.3 million, up 4 percent from $44.4 million for the 1992 fourth quarter. TCF's net interest margin was 4.04 percent for 1993 and 4.00 percent for the fourth quarter, compared with 3.60 percent for 1992 and 3.80 percent for the 1992 fourth quarter. The increases were primarily due to a lower cost of funds, growth in lower interest-cost deposits and higher-yielding consumer loans, lower average levels of non-performing assets, and increased capital.
 Fee income (non-interest income excluding gains on sales of mortgage-backed securities, investments, and loan servicing) totaled a record $119.5 million for 1993, up 12 percent from $106.5 million for 1992. For the 1993 fourth quarter, fee income totaled $31.8 million, up 15 percent from $27.7 million for the 1992 fourth quarter. Included in the 1993 totals were gains of $10.7 million on the sale of loans and securities held for sale, including $3.1 million in the fourth quarter, compared with $10.3 million and $2.9 million in the same 1992 periods. Increased deposit and insurance activity also contributed to the improvements.
 Operating expenses (non-interest expense excluding the provision for real estate losses and 1993 merger-related restructuring charges) totaled $198.3 million for 1993, up 9 percent from $181.1 million in 1992. For the 1993 fourth quarter, operating expenses totaled $53.6 million, up 10 percent from $48.6 million for the 1992 comparable period. The increases were primarily due to expanded mortgage banking, consumer lending and insurance operations, and start-up costs associated with acquisitions. Also reflected in the 1993 full-year totals were write-offs of $3.6 million of purchased mortgage servicing rights due to accelerated prepayments, compared with $1.1 million in 1992.
 Non-performing assets (principally real estate acquired through foreclosure and non-accrual loans) were $45 million at Dec. 31, 1993, compared with $52.7 million at year-end 1992. TCF provided $21.9 million for credit losses in 1993, including $7 million in merger- related provisions, compared with $13.2 million in 1992. In the 1993 fourth quarter, TCF provided $2.1 million for credit losses, compared with $2.4 million in the 1992 fourth quarter. Net loan charge- offs were $13.3 million in 1993 and $2.6 million in the 1993 fourth quarter, compared with $18.6 million and $7.5 million in the same 1992 periods. At year-end 1993, TCF's allowance for loan losses totaled $26.1 million, up from $19.2 million at year-end 1992, and was 150 percent of non-accrual loans.
 Total loans were $2.7 billion at year-end 1993, up $88.2 million from year-end 1992. Residential real estate loans increased by $204.5 million, which was partially offset by a $141.8 million reduction in commercial real estate loans. At Dec. 31, 1993, TCF's home equity loan portfolio totaled $759.4 million, up $22.3 million from a year ago.
 Residential mortgage originations totaled a record $2.3 billion in 1993, up 21 percent from $1.9 billion in 1992. The 1993 fourth quarter mortgage production totaled $744.7 million, up 41 percent from $526.8 million in the 1992 fourth quarter. "Lower interest rates made housing more affordable, contributing to an exceptionally strong year for mortgage originations," said Cooper.
 Deposits totaled $4.1 billion at Dec. 31, 1993, up $97.9 million from year-end 1992. Lower interest-cost checking and savings deposits totaled $1.7 billion and comprised 40 percent of total deposits at year- end 1993. The weighted average rate on total deposits was 3.15 percent at Dec. 31, 1993, down from 3.95 percent a year earlier.
 At Dec. 31, 1993, book value per share was $23.91 based on 12,361,569 shares outstanding. TCF Bank Minnesota fsb continued to exceed the regulatory capital requirements for core, tangible and risk- based capital. TCF has $5 billion in assets and 133 banking offices in Minnesota, Illinois, Wisconsin, Michigan and Iowa.
 TCF FINANCIAL CORPORATION AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (Dollars in thousands, except per-share data)
 (Unaudited)
 Three months ended Year ended
 12/31/93 12/31/92 12/31/93 12/31/92
 Interest income:
 Interest on loans $63,841 $66,875 $252,592 $269,582
 Interest on mortgage-backed
 securities 21,791 26,207 93,255 107,783
 Interest on investments 2,678 4,347 11,754 21,066
 Total interest income 88,310 97,429 357,601 398,431
 Interest expense:
 Interest on deposits 33,237 40,588 136,253 185,539
 Interest on borrowings 8,739 12,426 36,924 45,686
 Total interest expense 41,976 53,014 173,177 231,225
 Net interest income 46,334 44,415 184,424 167,206
 Provision for credit losses(a) 2,140 2,429 21,933 13,190
 Net interest income after
 provision for credit losses 44,194 41,986 162,491 154,016
 Non-interest income:
 Other fees and service
 charges 19,587 17,550 72,130 66,582
 Data processing revenue 2,129 1,862 8,120 7,310
 Gain on sale of loans and mortgage-
 backed securities, net -- -- -- 718
 Gain on sale of investments, net -- -- -- 114
 Gain on sale of loans held for
 sale, net 3,140 871 10,059 6,889
 Gain on sale of securities held
 for sale, net -- 2,014 649 3,362
 Gain on sale of loan servicing,
 net -- -- 137 --
 Commissions on sales of
 annuities 1,741 1,996 9,446 9,327
 Title insurance revenues 4,298 2,715 15,229 9,984
 Other 923 711 3,845 3,058
 Total non-interest income 31,818 27,719 119,615 107,344
 Non-interest expense:
 Compensation and employee
 benefits 24,742 22,107 90,045 82,388
 Occupancy and equipment, net 8,965 7,508 32,834 29,542
 Advertising and promotions 3,195 2,205 11,254 9,423
 Federal deposit insurance premiums
 and assessments 2,477 2,368 8,979 9,606
 Amortization of goodwill and
 other intangibles 988 958 2,957 3,830
 Provision for real estate
 losses(b) 1,100 5,454 11,743 22,054
 Merger-related restructuring
 expense -- -- 5,494 --
 Other 13,254 13,432 52,182 46,302
 Total non-interest expense 54,721 54,032 215,488 203,145
 Income before income tax
 expense 21,291 15,673 66,618 58,215
 Income tax expense 9,156 1,747 28,647 12,956
 Net income $12,135 $13,926 $37,971 $45,259
 Per common share:
 Net income $.97 $1.13 $3.04 $3.74
 Dividends declared $.1875 $.125 $.6875 $.475
 Financial ratios (annualized):
 Return on average assets .97% 1.11% .77% .91%
 Return on average equity 16.76 22.05 13.73 19.53
 Net interest margin 4.00 3.80 4.04 3.60
 (a) For the year ended Dec. 31, 1993, includes $7,000 in merger- related provisions.
 (b) For the year ended Dec. 31, 1993, includes $700 in merger-related provisions.
 TCF FINANCIAL CORPORATION AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 (Dollars in thousands, except per-share data)
 (Unaudited)
 12/31/93 12/31/92
 ASSETS
 Cash and due from banks $165,905 $140,779
 Interest-bearing deposits with banks 10,512 26,534
 Federal funds sold 105,500 100,000
 U.S. Government and other marketable
 securities 81,260 133,629
 Federal home loan bank stock, at cost 37,849 33,601
 Securities held for sale 10,003 256,624
 Loans held for sale 421,893 285,524
 Mortgage-backed securities 1,237,202 1,139,583
 Loans:
 Residential real estate 1,063,158 858,685
 Commercial real estate 687,202 828,995
 Commercial business 89,368 80,312
 Consumer 919,027 906,661
 Unearned discounts and deferred fees (13,609) (17,727)
 Total loans 2,745,146 2,656,926
 Allowance for loan losses (26,055) (19,249)
 Net loans 2,719,091 2,637,677
 Premises and equipment 79,654 64,392
 Real estate:
 In judgment and acquired through
 foreclosure 27,521 36,574
 Held for development -- 10,390
 Total real estate 27,521 46,964
 Allowance for real estate losses (1,968) (2,291)
 Net real estate 25,553 44,673
 Accrued interest receivable 29,418 33,767
 Due from brokers -- 36,087
 Goodwill 14,549 16,446
 Deposit base intangibles 16,556 3,135
 Other assets 70,585 69,145
 Total $5,025,530 $5,021,596
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Deposits:
 Checking $800,123 $728,950
 Passbook and statement 855,781 724,409
 Money market 469,694 462,507
 Certificates 1,976,960 2,088,842
 Total deposits 4,102,558 4,004,708
 Securities sold under repurchase
 agreements 129,812 100,000
 Federal home loan bank advances 396,692 516,337
 Subordinated capital notes 34,500 63,250
 Other borrowings 14,428 22,345
 Total borrowings 575,432 701,932
 Accrued interest payable 10,248 8,936
 Accrued expenses and other liabilities 41,684 44,235
 Total liabilities 4,729,922 4,759,811
 Stockholders' equity:
 Common stock, par value $.01 per share,
 70,000,000 shares authorized; 12,361,569
 and 12,106,615 shares issued and
 outstanding 124 121
 Additional paid-in capital 150,602 146,890
 Unamortized deferred compensation (1,272) (1,159)
 Retained earnings, subject to certain
 restrictions 146,502 116,569
 Loan to executive deferred compensation
 plan (348) (601)
 Loan to employee stock ownership plan -- (35)
 Total stockholders' equity 295,608 261,785
 Total $5,025,530 $5,021,596
 BALANCE SHEET HIGHLIGHTS
 (Dollars in thousands, except per-share data)
 12/31/93 12/31/92
 Other financial condition data:
 Tangible net worth $281,059 $245,339
 Stockholders' equity to total assets 5.88% 5.21%
 Book value per share $23.91 $21.62
 Tangible book value per share 22.74 20.26
 Non-performing assets:
 Non-accrual loans $17,424 $16,056
 Real estate and other assets 27,598 36,605
 Total non-performing assets $45,022 $52,661
 TCF Bank Minnesota fsb regulatory capital ratios:
 Tangible capital 5.65% 5.39%
 Core capital 6.25 5.78
 Risk-based capital 12.25 11.98
 -0- 1/12/94
 /CONTACT: Cynthia W. Lee, investor relations, 612-661-8859; or Elizabeth Anders, media relations, 612-661-8853, both of TCF/
 (TCB)


CO: TCF Financial Corporation ST: Minnesota IN: FIN SU: ERN

DB-CP -- MN011 -- 1520 01/12/94 16:09 EST
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Date:Jan 12, 1994
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