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TCF REPORTS 44 PERCENT INCREASE IN SECOND QUARTER NET INCOME

 TCF REPORTS 44 PERCENT INCREASE IN SECOND QUARTER NET INCOME
 MINNEAPOLIS, July 15 /PRNewswire/ -- TCF Financial Corporation (NYSE: TCB) (TCF) today reported net income of $6.5 million for the second quarter ended June 30, 1992, up 44 percent from $4.5 million for the 1991 second quarter. TCF's 1991 results included a $2 million extraordinary credit from the utilization of net operating loss carryovers. TCF's 1992 income is fully taxable.
 Income before extraordinary item was 65 cents per share for the 1992 second quarter, up 97 percent from 33 cents per share for the 1991 second quarter, even though TCF's weighted average shares outstanding increased to 9,979,127 from 7,710,605. The increase in shares was largely due to a public offering completed in January 1992. Net income per share was 65 cents for the 1992 second quarter, compared with 59 cents for the same period last year.
 For the first six months of 1992, income before extraordinary item was $12.1 million, up 144 percent from $5 million for the 1991 first half. On a per-share basis, income before extraordinary item was $1.23, up 86 percent from 66 cents. Net income was $12.1 million or $1.23 per share, compared with 1991 first half earnings of $8.8 million or $1.17 per share. Included in the 1991 results was an extraordinary credit of $3.9 million or 51 cents per share from the utilization of net operating loss carryovers.
 TCF Chairman and Chief Executive Officer William A. Cooper said TCF's results reflect continued improvement in core operations. "Our second quarter net interest income, net interest margin and fee income broke the record levels set in the 1992 first quarter. We are especially pleased with our net interest margin which grew to 3.81 percent," said Cooper. "We also made tremendous progress in reducing non-performing assets 32 percent during the second quarter to $46.7 million, their lowest level since 1984.
 "In addition, our mortgage banking subsidiary has produced record origination volume and a steady growth in its residential mortgage servicing portfolio. Title insurance and insurance agency revenues continued to outpace 1991 results, and our home equity loan portfolio increased by $32.9 million in the first half of 1992," noted Cooper.
 Net interest income was a record $35.3 million for the 1992 second quarter, up 18 percent from $29.9 million for the 1991 second quarter, and up 12 percent from $31.4 million for the 1992 first quarter. TCF's net interest margin was a record 3.81 percent, up from 3.23 percent for the 1991 second quarter and 3.43 percent for the 1992 first quarter. For the 1992 first half, net interest income and the net interest margin were $66.7 million and 3.62 percent, respectively, compared with $57.7 million and 3.09 percent for the 1991 first half. 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 sale of mortgage-backed securities) was a record $23.1 million for the 1992 second quarter, up 10 percent from $21 million for the same 1991 period, and up 5 percent from $21.9 million for the 1992 first quarter. Year- to-date, fee income totaled $45 million, up 15 percent from $39.2 million in the 1991 first half. The improvements noted were mainly due to the increased volumes of mortgage banking, deposit and title insurance activities.
 Operating expenses (non-interest expense excluding the provision for real estate losses) totaled $38.9 million for the 1992 second quarter, up 8 percent from $36 million a year ago. For the 1992 first half, operating expenses totaled $75.8 million, up 6 percent from $71.5 million in the 1991 first half. The increase in operating expense was due primarily to increased mortgage banking and title insurance activities. TCF's net overhead expense (controllable operating expenses less fee income) for the 1992 first half was 5 percent lower than a year ago, as fee income increased by $1.5 million more than controllable operating expenses.
 Non-performing assets (principally real estate acquired through foreclosure and non-accrual loans) were $46.7 million at June 30, down substantially from $86.1 million a year ago, $70.9 million at year-end 1991 and $68.6 million at March 31. "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's allowances for loan and real estate losses totaled $21.4 million at June 30, compared with $26.3 million at year-end 1991. The ratio of total allowances for loan and real estate losses to non-performing assets was 46 percent at June 30, up from 37 percent at year-end 1991.
 TCF provided $8.7 million for loan and real estate losses in the 1992 second quarter, down from $10 million a year ago. Net loan and real estate charge-offs were $10.3 million for the second quarter, compared with $6.9 million for the same 1991 period.
 Total loans, including loans held for sale, were $2.4 billion at June 30, up $188.6 million from year-end 1991. Consumer loans outstanding grew by $13 million, with a $32.9 million increase in home equity loans and a $16.4 million increase in education loans partially offset by a $39.6 million reduction in indirect auto loans. At June 30, TCF's home equity loan portfolio totaled $687.1 million.
 Residential mortgage originations at TCF Mortgage Corporation (TCFMC) totaled a record $443.8 million in the second quarter, up 54 percent from $289.1 million in the same 1991 period. Residential mortgage originations in the 1992 first half were a record $868.3 million, up 103 percent from $426.8 million in the 1991 first half. At June 30, TCFMC's residential mortgage servicing portfolio totaled $3.5 billion, compared with $3 billion at year-end 1991.
 Deposits totaled $3.2 billion at June 30, relatively unchanged 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 at June 30 was 4.43 percent, compared with 5.30 percent at year-end 1991.
 At June 30, TCF had total assets of $4.1 billion, up slightly from year-end 1991. Book value per share was $22.55 and tangible book value per share was $16.63, based on 9,677,944 shares outstanding. The capital ratios of TCF Bank Savings fsb (TCF Bank) exceed the current minimum regulatory requirements. At June 30, TCF Bank's core capital was 5.47 percent of adjusted assets, tangible capital was 4.43 percent and risk-based capital was 10.92 percent.
 TCF is the holding company for TCF Bank, which has 58 Minnesota and 20 northern Illinois branches. On July 13, TCF Bank also established a branch in suburban Milwaukee, and in Des Moines, Iowa, following approval by the Office of Thrift Supervision. TCF Bank and its affiliates provide banking, insurance and other financial services. Deposits at TCF Bank are insured to $100,000 by Federal Deposit Insurance Corporation.
 TCF FINANCIAL CORPORATION
 OPERATING HIGHLIGHTS
 (Dollars in thousands, except per-share data)
 Three Months Ended Six Months Ended
 6/30/92 6/30/91 6/30/92 6/30/91
 Selected Operations Data:
 Total revenues $103,522 $110,559 $205,855 $221,649
 Total interest income 80,415 89,560 160,109 181,441
 Total interest expense 45,135 59,626 93,436 123,713
 Net interest income 35,280 29,934 66,673 57,728
 Provision for loan losses 3,151 3,500 4,663 7,200
 Net interest income after
 provision for loan losses 32,129 26,434 62,010 50,528
 Non-interest income:
 Gain on sale of loans and
 investments, net -- -- 718 959
 Other non-interest income 23,107 20,999 45,028 39,249
 Total non-interest income 23,107 20,999 45,746 40,208
 Non-interest expense:
 Provision for real
 estate losses 5,522 6,500 11,406 9,500
 Amortization of goodwill
 and other intangibles 1,890 1,890 3,780 3,780
 Other non-interest expense 37,016 34,088 72,030 67,751
 Total non-interest expense 44,428 42,478 87,216 81,031
 Income before income tax expense
 and extraordinary item 10,808 4,955 20,540 9,705
 Income tax expense 4,313 2,401 8,442 4,751
 Income before
 extraordinary item 6,495 2,554 12,098 4,954
 Extraordinary item (a) -- 1,957 -- 3,880
 Net income $6,495 $4,511 $12,098 $8,834
 Earnings per share:
 Income before
 extraordinary item $.65 $.33 $1.23 $.66
 Extraordinary item (a) -- .26 -- .51
 Net income $.65 $.59 $1.23 $1.17
 (a) Represents tax benefit resulting from the utilization of net operating loss carryovers.
 Financial Ratios (annualized) (in percents):
 Return on average assets .64 .44 .60 .43
 Return on average equity 12.11 11.28 11.71 11.21
 Net interest margin 3.81 3.23 3.62 3.09
 TCF FINANCIAL CORPORATION
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 (Dollars in thousands, except per-share data)
 ASSETS 6/30/92 12/31/91
 (unaudited)
 Cash and due from banks $80,280 $100,175
 Interest-bearing deposits with banks 21,100 10,698
 Federal funds sold 101,000 100,000
 U.S. Government and other marketable
 securities (market value of $85,620
 and $168,241) 85,619 168,187
 Federal Home Loan Bank stock, at cost 26,793 27,364
 Loans held for sale 219,632 200,281
 Mortgage-backed securities, net
 (market value of $1,164,385
 and $1,209,743) 1,126,104 1,162,521
 Loans:
 Residential real estate 595,129 413,169
 Commercial real estate 717,872 729,141
 Commercial business 83,988 87,388
 Consumer 818,069 821,486
 Unearned discounts and deferred fees (19,233) (24,570)
 Total loans 2,195,825 2,026,614
 Allowance for loan losses (17,981) (18,679)
 Net loans 2,177,844 2,007,935
 Premises and equipment, net 47,087 47,215
 Real estate:
 In judgment and acquired through
 foreclosure 32,775 57,425
 Held for development 13,702 18,104
 Total real estate 46,477 75,529
 Allowance for real estate losses (3,433) (7,603)
 Net real estate 43,044 67,926
 Accrued interest receivable 27,403 28,201
 Goodwill 57,248 60,848
 Other assets 57,954 55,406
 -- $4,071,108 $4,036,757
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Deposits:
 Checking $515,852 $493,210
 Passbook and statement 576,410 538,570
 Money market 369,806 356,877
 Certificates 1,777,583 1,843,131
 Total deposits 3,239,651 3,231,788
 Securities sold under repurchase agreements 100,000 100,000
 Federal Home Loan Bank advances 405,255 455,166
 Subordinated capital notes 63,250 28,750
 Total borrowings 568,505 583,916
 Accrued interest payable 8,976 11,485
 Accrued expenses and other liabilities 35,763 36,650
 Total liabilities 3,852,895 3,863,839
 Stockholders' equity:
 Common stock, par value $.01 per share,
 70,000,000 shares authorized; 9,677,944
 and 7,682,525 shares issued and
 outstanding 97 77
 Additional paid-in capital 118,865 84,434
 Unamortized deferred compensation (1,498) (1,917)

 Retained earnings, subject to
 certain restrictions 101,472 91,538
 Loan to Executive Deferred
 Compensation Plan (723) (1,214)
 Total stockholders' equity 218,213 172,918
 -- 4,071,108 4,036,757
 TCF FINANCIAL CORPORATION
 BALANCE SHEET HIGHLIGHTS
 (Dollars in thousands, except per-share data)
 6/30/92 12/31/91
 Other Financial Condition Data:
 Tangible net worth $160,965 $112,070
 Stockholders' equity to total assets (pct) 5.36 4.28
 Book value per share $22.55 $22.51
 Tangible book value per share 16.63 14.59
 Non-performing assets:
 Non-accrual loans 13,807 13,241
 Real estate and other assets 32,902 57,646
 Total non-performing assets 46,709 70,887
 One-year interest-rate gap to total assets 2 pct. 3 pct.
 TCF Bank Savings fsb regulatory
 capital ratios (percent):
 Tangible capital 4.43 2.67
 Core capital 5.47 4.21
 Risk-based capital 10.92 8.74
 -0- 7/15/92
 /CONTACT: Cynthia A. Wind of TCF, 612-370-7390/
 (TCB) CO: TCF Financial Corporation ST: Minnesota IN: FIN SU: ERN


AL -- MN008 -- 9556 07/15/92 12:46 EDT
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