Printer Friendly

TCF REPORTS 43 PERCENT INCREASE IN THIRD QUARTER NET INCOME

 TCF REPORTS 43 PERCENT INCREASE IN THIRD QUARTER NET INCOME
 MINNEAPOLIS, Oct. 15 /PRNewswire/ -- TCF Financial Corporation (TCF) (NYSE: TCB) today reported net income of $7.1 million for the third quarter ended Sept. 30, 1992, up 43 percent from $4.9 million for the 1991 third quarter. Net income per share was 70 cents for the 1992 third quarter, compared with 63 cents last year. TCF's 1991 results included an extraordinary credit of $2 million or 25 cents per share from the utilization of net operating loss carryovers. TCF's 1992 income is fully taxable.
 Commenting on the third quarter results, TCF Chairman and Chief Executive Officer William A. Cooper said, "We're very pleased with the continued improvement in operating earnings, which reflects the success of our community banking focus." He noted that income before extraordinary item was $7.1 million for the 1992 third quarter, up 139 percent from $3 million for the 1991 third quarter. On a per-share basis, income before extraordinary item was 70 cents, compared with 38 cents a year ago.
 For the first nine months of 1992, net income was $19.2 million or $1.94 per share, compared with $13.8 million or $1.80 per share for 1991. Year-to-date income before extraordinary item was $19.2 million or $1.94 per share, compared with $7.9 million or $1.04 per share. Included in the 1991 results was an extraordinary credit of $5.9 million or 76 cents per share from the utilization of net operating loss carryovers.
 "We've made continued progress in several key areas," said Cooper. "Third quarter net interest income and the net interest margin increased over last year, fee income grew faster than operating expenses, and non- performing assets declined." Cooper cited as major contributors the continued growth of TCF's consumer loans and lower interest-cost deposits, increased residential mortgage origination volume, the steady growth of its residential mortgage servicing portfolio, and increased revenues from insurance operations.
 Net interest income was $35.1 million for the 1992 third quarter, up 18 percent from $29.7 million for the 1991 third quarter. TCF's net interest margin was 3.69 percent, up from 3.24 percent for the 1991 third quarter. For the first nine months, net interest income and the net interest margin were $101.8 million and 3.65 percent, respectively, compared with $87.4 million and 3.14 percent for the first nine months of 1991. The increases were primarily due to a lower cost of funds, growth in lower interest-cost deposits and higher-yielding consumer loans, lower levels of non-performing assets and the favorable impact of TCF's January 1992 public offering.
 Fee income (non-interest income excluding the gain on asset sales) was $22.8 million for the 1992 third quarter, up 18 percent from $19.2 million for the same 1991 period. Year-to-date fee income totaled $67.8 million, up 16 percent from $58.5 million in the first nine months of 1991. The improvement was mainly due to the increased volumes of mortgage banking, deposit and insurance activities.
 Operating expenses (non-interest expense excluding the provision for real estate losses) totaled $38.8 million for the 1992 third quarter, up 6 percent from $36.5 million a year ago. Year-to-date operating expenses totaled $114.6 million, up 6 percent from $108 million in the first nine months of 1991. The increase in operating expenses was due primarily to increased mortgage banking and insurance activities. TCF's net overhead expense (controllable operating expenses less fee income) for the first nine months of 1992 was 6 percent lower than a year ago, as fee income increased by $2.7 million more than controllable operating expenses.
 Non-performing assets (principally real estate acquired through foreclosure and non-accrual loans) were $40.3 million at Sept. 30, down from $87.3 million a year ago, $70.9 million at year-end 1991, and $46.7 million at June 30. TCF's allowances for loan and real estate losses totaled $22 million at Sept. 30, compared with $26.3 million at year-end 1991 and $21.4 million at June 30. The ratio of allowances to non-performing assets was 55 percent at Sept. 30, up from 37 percent at year-end 1991 and 46 percent at June 30. "Despite the weak economy and depressed commercial real estate values, we've significantly reduced non-performing assets. Maintaining TCF's credit quality remains a key challenge," said Cooper.
 TCF provided $7 million for loan and real estate losses in the 1992 third quarter, down from $11 million a year ago. Net loan and real estate charge-offs were $6.4 million for the third quarter, down from $15 million for the same 1991 period.
 Total loans, including loans held for sale, were $2.5 billion at Sept. 30, up $247.7 million from year-end 1991. Consumer loans outstanding grew by $38.9 million, with a $56.5 million increase in home equity loans and a $23.8 million increase in education loans partially offset by a $53.5 million reduction in indirect auto loans which TCF de- emphasized in 1989.
 Residential mortgage originations at TCF Mortgage Corporation (TCFMC) totaled $401.2 million in the third quarter, up 61 percent from $249.4 million in the same 1991 period. Mortgage production in the first nine months of 1992 was a record $1.3 billion, compared with $676.2 million in the first nine months of 1991. At Sept. 30, TCFMC's residential loan servicing portfolio totaled $3.7 billion, compared with $3 billion at year-end 1991.
 Deposits totaled $3.2 billion at Sept. 30, relatively unchanged from year-end 1991; however, lower interest-cost checking and savings deposits increased $109 million from year-end 1991. The weighted average rate on deposits at Sept. 30 was 4.04 percent, down from 5.30 percent at year-end 1991.
 At Sept. 30, TCF had total assets of $4.2 billion, up $123.1 million from year-end 1991. Book value per share was $23.09 and tangible book value per share was $17.42, based on 9,781,335 shares outstanding. The capital ratios of TCF Bank Savings fsb (TCF Bank) exceed the current minimum regulatory requirements. At Sept. 30, TCF Bank's core capital was 5.80 percent of adjusted assets, tangible capital was 4.76 percent and risk-based capital was 11.65 percent.
 TCF is the holding company for TCF Bank, which operates 58 branches in Minnesota, 20 in northern Illinois, one in Iowa and one in Wisconsin. TCF Bank and its affiliates provide banking, insurance and other financial services. Deposits at TCF Bank are insured to $100,000 by the Federal Deposit Insurance Corporation.
 TCF FINANCIAL CORPORATION
 OPERATING HIGHLIGHTS
 (Dollars in thousands, except per-share data)
 Three Months Ended Nine Months Ended
 9/30/92 9/30/91 9/30/92 9/30/91
 Selected Operations Data:
 Total revenues $102,475 $111,177 $308,330 $332,826
 Total interest income 79,722 87,212 239,831 268,653
 Total interest expense 44,640 57,516 138,076 181,229
 Net interest income 35,082 29,696 101,755 87,424
 Provision for loan losses 3,043 3,992 7,706 11,192
 Net interest income after
 provision for loan losses 32,039 25,704 94,049 76,232
 Non-interest income:
 Gain on sale of loans and
 investments, net -- 7 718 966
 Gain on sale of loan
 servicing, net -- 4,732 -- 4,732
 Other non-interest income 22,753 19,226 67,781 58,475
 Total non-interest income 22,753 23,965 68,499 64,173
 Non-interest expense:
 Provision for real
 estate losses 3,932 7,042 15,338 16,542
 Amortization of goodwill
 and other intangibles 1,890 1,890 5,670 5,670
 Other non-interest expense 36,942 34,607 108,972 102,358
 Total non-interest expense 42,764 43,539 129,980 124,570
 Income before income tax
 expense and extraordinary
 item 12,028 6,130 32,568 15,835
 Income tax expense 4,943 3,165 13,385 7,916
 Income before extraordinary
 item 7,085 2,965 19,183 7,919
 Extraordinary item (a) -- 1,977 -- 5,857
 Net income $7,085 $4,942 $19,183 $13,776
 Earnings per share:
 Income before extraordinary
 item $.70 $.38 $1.94 $1.04
 Extraordinary item (a) -- .25 -- .76
 Net income $.70 $.63 $1.94 $1.80
 (a) Represents tax benefit resulting from the utilization of net operating loss carryovers.
 Financial Ratios (annualized)
 (percent):
 Return on average assets .69 .49 .63 .45
 Return on average equity 12.72 12.02 12.10 11.49
 Net interest margin 3.69 3.24 3.65 3.14
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 (Dollars in Thousands, except per-share data)
 At Sept. 30 At. Dec. 31,
 1992 1991
 (Unaudited)
 Assets
 Cash and due from banks $94,662 $100,175
 Interest-bearing deposits with banks 25,100 10,698
 Federal funds sold 131,000 100,000
 U.S. Government and other
 marketable securities (market value
 of $80,439 and $168,241) 80,419 168,187
 Federal Home Loan Bank stock, at cost 26,782 27,364
 Loans held for sale 282,589 200,281
 Mortgage-back securities, net (market
 value of $1,167,267 and $1,209,743) 1,117,051 $1,162,521
 Loans:
 Residential real estate 598,313 413,169
 Commercial real estate 694,521 729,141
 Commercial business 80,468 87,388
 Consumer 836,621 821,486
 Unearned discounts and deferred fees (17,934) (24,570)
 Total loans 2,191,989 2,026,614
 Allowance for loan losses (19,085) (18,679)
 Net loans 2,172,904 2,007,935
 Premises and equipment, net 46,956 47,215
 Real estate:
 In judgment and acquired through
 foreclosure 29,053 57,425
 Held for development 10,159 18,104
 Total real estate 39,212 75,529
 Allowance for real estate losses (2,947) (7,603)
 Net real estate 36,265 67,926
 Accrued interest receivable 27,067 28,201
 Goodwill 55,448 60,848
 Other assets 63,653 55,406
 -- $4,159,896 $4,036,757
 Liabilities and stockholders' equity
 Deposits:
 Checking $563,392 $493,210
 Passbook and statement 577,419 538,570
 Money market 372,084 356,877
 Certificates 1,715,673 1,843,131
 Total deposits 3,228,568 3,231,788
 Securities sold under
 repurchase agreements 100,000 100,000
 Federal Home Loan Bank advances 485,255 455,166
 Subordinated capital notes 63,250 28,750
 Total borrowings 648,505 583,916
 Accrued interest payable 8,648 11,485
 Accrued expenses and other liabilities 48,371 36,650
 Total liabilities 3,934,092 3,863,839
 Stockholders' equity:
 Common stock, par value $.01 per
 share, 70,000,000 shares authorized;
 9,781,335 and 7,682,525 shares
 issued and outstanding 98 77
 Additional paid-in capital 120,350 84,434
 Unamortized deferred compensation (1,328) (1,917)
 Retained earnings, subject to
 certain restrictions 107,344 91,538
 Loan to Executive Deferred
 Compensation Plan (660) (1,214)
 Total stockholders' equity 225,804 172,918
 -- $4,159,896 $4,036,757
 TCF FINANCIAL CORPORATION
 BALANCE SHEET HIGHLIGHTS
 (Dollars in thousands, except per-share data)
 At 9/30/92 At 12/31/91
 Other Financial Condition Data:
 Tangible net worth $170,356 $112,070
 Stockholders' equity to total assets(pct.) 5.43 4.28
 Book value per share $23.09 $22.51
 Tangible book value per share 17.42 14.59
 Non-performing assets:
 Non-accrual loans $11,120 $13,241
 Real estate and other assets 29,217 57,646
 Total non-performing assets $40,337 $70,887
 One-year interest-rate gap to total
 assets (pct.) 7 3
 TCF Bank Savings fsb regulatory capital ratios:
 Tangible capital (pct.) 4.76 2.67
 Core capital (pct.) 5.80 4.21
 Risk-based capital (pct.) 11.65 8.74
 -0- 10/15/92
 /CONTACT: Cynthia A. Wind, investor relations, 612-370-7390, or Elizabeth Anders, media relations, 612-370-1576, both of TCF/
 (TCB) CO: TCF Financial Corporation ST: Minnesota IN: FIN SU: ERN


AL -- MN001 -- 0285 10/15/92 09:53 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 15, 1992
Words:1990
Previous Article:BRENCO INCORPORATED ANNOUNCES RESULTS
Next Article:EMPLOYEE BENEFIT PLANS, INC. REPORTS FIRST-QUARTER EARNINGS
Topics:


Related Articles
TCF EARNS $19 MILLION FOR 1991; FOURTH QUARTER EARNINGS UP 21 PERCENT
TCF REPORTS 43 PERCENT INCREASE IN THIRD QUARTER NET INCOME
TCF REPORTS SECOND QUARTER EARNINGS
TCF REPORTS IMPROVED THIRD QUARTER EARNINGS
TCF REPORTS 1993 FOURTH QUARTER AND FULL-YEAR EARNINGS, INCREASED DIVIDEND
TCF REPORTS 1994 FIRST QUARTER NET INCOME UP 25 PERCENT
TCF REPORTS RECORD QUARTERLY EARNINGS
TCF REPORTS FIRST QUARTER RESULTS; INCOME BEFORE MERGER-RELATED CHARGES UP 25 PERCENT; DIVIDEND ON COMMON STOCK INCREASED 25 PERCENT
TCF REPORTS RECORD THIRD-QUARTER EARNINGS
TCF REPORTS RECORD FIRST-QUARTER EARNINGS

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters