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TCF REPORTS 30 PERCENT INCREASE IN FIRST QUARTER EARNINGS, CONTINUED IMPROVEMENT IN CORE OPERATIONS

 TCF REPORTS 30 PERCENT INCREASE IN FIRST QUARTER EARNINGS,
 CONTINUED IMPROVEMENT IN CORE OPERATIONS
 MINNEAPOLIS, April 14 /PRNewswire/ -- TCF Financial Corporation (TCF)(NYSE: TCB) today reported net income of $5.6 million for the first quarter ended March 31, 1992, up 30 percent from $4.3 million for the first quarter of 1991. TCF's 1991 results included a $1.9 million extraordinary credit resulting from the utilization of net operating loss carryovers. TCF's 1992 results are fully taxable.
 Income before extraordinary item was 58 cents per share for the 1992 first quarter, an increase of 81 percent from 32 cents per share for the 1991 first quarter, even though TCF's weighted average shares outstanding increased to 9,650,696 for the first quarter of 1992 from 7,462,128 for the 1991 first quarter. The increase in shares was primarily the result of TCF's January 1992 public offering. Net income per share was 58 cents for the 1992 first quarter, unchanged from a year ago.
 "As evidenced by our improved first quarter results, we've made substantial progress toward our goal of becoming a consistently profitable, well-capitalized community bank," said William A. Cooper, TCF chairman and chief executive officer. He noted that the 1992 first quarter results mark TCF's seventh consecutive profitable quarter.
 Cooper highlighted TCF's strong performance in several areas. "We had double-digit percentage increases compared to the 1991 first quarter in our net interest income, net interest margin and fee income -- all to record levels. Our mortgage banking operation continued to grow, with record originations and an expanded servicing portfolio. Title insurance revenues nearly doubled. Our deposits grew, despite the lower interest rate environment, and so did home equity loans. We reduced net overhead expense, and our non-performing assets continued to decline. We also significantly increased our regulatory capital ratios through earnings retention and the recently completed public offering."
 Net interest income was a record $31.4 million for the 1992 first quarter, up 13 percent from $27.8 million for the 1991 first quarter, and up 5 percent from $29.8 million for the 1991 fourth quarter. TCF's net interest margin for the 1992 first quarter was a record 3.43 percent, up from 2.96 percent for the 1991 first quarter and 3.29 percent for the 1991 fourth quarter. The increases were primarily due to a lower cost of funds, wider spreads between the prime rate and short-term interest rates, a changing asset mix, lower levels of non- earning assets and the favorable impact of TCF's January 1992 public offering.
 Fee income (non-interest income excluding the gain on sale of mortgage-backed securities) was a record $21.9 million for the 1992 first quarter, up 20 percent from $18.3 million for the same 1991 period. The improvement was largely due to increased volumes of deposit, mortgage banking and title insurance activities. Operating expenses (non-interest expense excluding the provision for real estate losses) grew by 4 percent, to $36.9 million for the 1992 first quarter from $35.6 million a year ago. TCF's net overhead expense declined 15 percent in the first quarter of 1992 as compared to the same 1991 period, as fee income increased by $2.3 million more than controllable operating expenses.
 Non-performing assets (principally real estate acquired through foreclosure and non-accrual loans) were $68.6 million at March 31, down slightly from $70.9 million at year-end 1991, and down 17 percent from $82.2 million a year ago. "Reducing our level of non-performing and other problem assets, in the face of the weak economy and depressed commercial real estate values, remains a key challenge," said Cooper.
 TCF provided $7.4 million for loan and real estate losses in the 1992 first quarter, up from $6.7 million in the 1991 first quarter, but down slightly from the 1991 fourth quarter provision. Net loan and real estate charge-offs were $10.7 million, down from $13.4 million in the 1991 first quarter. TCF's allowances for loan and real estate losses totaled $23 million at March 31, down from $26.3 million at year-end 1991.
 Total net loans, including loans held for sale, were $3.5 billion at March 31, up $134 million from year-end 1991. Consumer loans outstanding increased by $7.1 million, with a $15.8 million increase in home equity loans and a $14.1 million increase in education loans partially offset by a $21.7 million reduction in indirect auto loans. At March 31, TCF's home equity loan portfolio totaled $670 million.
 Mortgage originations at TCF Mortgage Corporation (TCFMC) were a record $424.5 million in the 1992 first quarter, up 208 percent from $137.7 million in the 1991 first quarter. At March 31, TCFMC's residential mortgage servicing portfolio totaled $3.2 billion, compared with $3 billion at year-end 1991.
 Deposits totaled $3.3 billion at March 31, up $48 million from year- end 1991. Lower interest-cost checking and savings accounts comprised 34 percent of total deposits, up from 32 percent at year-end 1991. The weighted average rate on deposits was 4.74 percent, compared with 5.30 percent at year-end 1991.
 At March 31, TCF had total assets of $4.1 billion and stockholders' equity of $211.2 million. Book value per share was $22.01 and tangible book value per share was $15.86, based on 9,596,007 shares outstanding. The capital ratios of TCF Bank Savings fsb (TCF Bank) exceed the current minimum regulatory requirements. At March 31, TCF Bank's core capital was 5.31 percent of adjusted assets, tangible capital was 4.26 percent, and risk-based capital was 10.51 percent.
 TCF is the holding company for TCF Bank, which has 58 Minnesota and 20 northern Illinois branches. Deposits at TCF Bank are insured to $100,000 by the Federal Deposit Insurance Corporation. TCF Bank and its subsidiaries provide banking, insurance and other financial services.
 TCF FINANCIAL CORPORATION
 OPERATING HIGHLIGHTS
 (Dollars in thousands, except per-share data)
 Three Months Ended
 March 31,
 1992 1991
 Selected Operations Data:
 Total revenues $102,333 $111,090
 Total interest income 79,694 91,881
 Total interest expense 48,301 64,087
 Net interest income 31,393 27,794
 Provision for loan losses 1,512 3,700
 Net interest income after provision
 for loan losses 29,881 24,094
 Non-interest income:
 Gain on sale of loans and
 investments, net 718 959
 Other non-interest income 21,921 18,250
 Total non-interest income 22,639 19,209
 Non-interest expense:
 Provision for real estate losses 5,884 3,000
 Other non-interest expense 36,904 35,553
 Total non-interest expense 42,788 38,553
 Income before income tax expense and
 extraordinary item 9,732 4,750
 Income tax expense 4,129 2,350
 Income before extraordinary item 5,603 2,400
 Extraordinary item (a) -- 1,923
 Net income 5,603 4,323
 Earnings per share:
 Income before extraordinary item $.58 $.32
 Extraordinary item (a) -- .26
 Net income $.58 $.58
 (a) Represents tax benefit resulting from the utilization of net operating loss carryovers.
 Financial ratios (annualized)(percents):
 Return on average assets .56 .42
 Return on average equity 11.22 11.13
 Net interest margin 3.43 2.96
 TCF FINANCIAL CORPORATION
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 (Dollars in thousands, except per-share data)
 At At
 March 31, Dec. 31,
 1992 1991
 ASSETS
 Cash and due from banks $91,712 $100,175
 Interest-bearing deposits with banks 100 10,698
 Federal funds sold 84,000 100,000
 U.S. Government and other marketable
 securities (market value of $106,786
 and $168,241) 106,787 168,187
 Federal Home Loan Bank stock, at cost 27,328 27,364
 Loans held for sale 182,472 200,281
 Loans:
 Mortgage-backed securities, net
 (market value of $1,191,166 and
 $1,209,743) 1,176,015 1,162,521
 Loans receivable:
 Residential real estate 570,222 413,169
 Commercial real estate 711,697 729,141
 Commercial business 87,373 87,388
 Consumer 814,496 821,486
 Unearned discounts and deferred fees (21,122) (24,570)
 Total loans receivable 2,162,666 2,026,614
 Total loans 3,338,681 3,189,135
 Allowance for loan losses (16,399) (18,679)
 Net loans 3,322,282 3,170,456
 Premises and equipment, net 47,450 47,215
 Real estate:
 Total real estate 74,773 75,529
 Allowance for real estate losses (6,595) (7,603)
 Net real estate 68,178 67,926
 Accrued interest receivable 27,708 28,201
 Goodwill 59,048 60,848
 Other assets 61,924 55,406
 -- $4,078,989 $4,036,757
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Deposits:
 Checking $522,052 $493,210
 Passbook and statement 585,765 538,570
 Money market 374,573 356,877
 Certificates 1,797,391 1,843,131
 Total deposits 3,279,781 3,231,788
 Securities sold under repurchase
 agreements 100,000 100,000
 Federal Home Loan Bank advances 365,166 455,166
 Subordinated capital notes 63,250 28,750
 Total borrowings 528,416 583,916
 Accrued interest payable 11,512 11,485
 Accrued expenses and other liabilities 48,053 36,650
 Total liabilities $3,867,762 $3,863,839
 Stockholders' equity:
 Common stock, par value $.01 per
 share, 70,000,000 shares
 authorized; 9,596,007 and
 7,682,525 shares issued and
 outstanding 96 77
 Additional paid-in capital 117,481 84,434
 Unamortized deferred compensation (1,695) (1,917)
 Retained earnings, subject to certain
 restrictions 96,183 91,538
 Loan to executive Deferred
 Compensation Plan (838) (1,214)
 Total stockholders' equity $211,227 $172,918
 -- $4,078,989 $4,036,757
 TCF FINANCIAL CORPORATION
 BALANCE SHEET HIGHLIGHTS
 (Dollars in thousands, except per-share data)
 At At
 March 31, Dec. 31,
 1992 1991
 Other Financial Condition Data:
 Tangible net worth $152,179 $112,070
 Stockholders' equity to total
 assets (percent) 5.18 4.28
 Book value per share $22.01 $22.51
 Tangible book value per share 15.86 14.59
 Non-performing assets 68,601 70,887
 One-year interest-rate gap to total
 assets (percent) 3 3
 TCF Bank Savings fsb regulatory capital
 ratios (percent):
 Tangible capital 4.26 2.67
 Core capital 5.31 4.21
 Risk-based capital 10.51 8.74
 -0- 4/14/92
 /CONTACT: Cynthia A. Wind of TCF, 612-370-7390/
 (TCB) CO: TCF Financial Corporation ST: Minnesota IN: FIN SU: ERN


AL -- MN012 -- 8281 04/14/92 16:02 EDT
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Date:Apr 14, 1992
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