Printer Friendly

TCF REPORTS FIRST QUARTER INCOME UP 16 PERCENT; RECORD NET INTEREST MARGIN AND FEE INCOME

 MINNEAPOLIS, April 14 /PRNewswire/ -- TCF Financial Corporation (NYSE: TCB) (TCF) today reported net income of $9.5 million for the first quarter ended March 31, 1993, up 16 percent from 1992 first quarter earnings of $8.1 million. TCF earned 92 cents per share for the 1993 first quarter, compared with 84 cents per share a year ago.
 Income before income tax expense totaled $16.5 million for the 1993 first quarter, an increase of 54 percent from the 1992 first quarter. Income tax expense increased to $7 million or 42 percent of pretax income for the 1993 first quarter, up from $2.6 million or 24 percent of pretax income for the comparable 1992 period. While TCF's 1992 tax rate reflected benefits obtained from reductions in the tax valuation allowance, TCF's income tax expense returned to a more normal rate in 1993.
 TCF's return on average assets was 0.96 percent for the first quarter of 1993, compared with 0.82 percent for the 1992 first quarter. Return on average equity was 17.63 percent for the 1993 first quarter, compared with 20.13 percent a year ago.
 TCF Chairman William A. Cooper noted that a steady focus on community banking has resulted in continued improvement in core operating earnings. "We've made substantial progress in several key areas. Net interest income, net interest margin and fee income again reached record levels," said Cooper.
 Cooper cited as major contributors to TCF's improved performance the continued growth of TCF's consumer loan portfolio and lower interest- cost deposits, continued strong residential mortgage lending activity, the steady growth of its residential mortgage servicing portfolio and increased revenues from insurance operations. He added that the continued earnings improvement prompted TCF's 50 percent increase in its quarterly cash dividend to 18.75 cents per share, as announced last month.
 Net interest income was a record $37.7 million for the 1993 first quarter, up 20 percent from $31.4 million for the 1992 first quarter. TCF's net interest margin was a record 4.12 percent for the 1993 first quarter, up from 3.43 percent for the 1992 first quarter and 3.96 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 levels of non-performing assets, and the favorable impact of TCF's March 1 redemption of $28.8 million of 12-5/8 percent subordinated capital notes.
 Fee income (non-interest income excluding gains on asset sales) totaled a record $23.5 million for the first quarter, up 7 percent from $21.9 million for the 1992 first quarter. The improvement was mainly due to the increased volumes of deposit and insurance activities. Operating expenses (non-interest expense excluding the provision for real estate losses) totaled $37.6 million for the first quarter, up 5 percent from $35.9 million for the 1992 first quarter.
 Non-performing assets (principally real estate acquired through foreclosure and non-accrual loans) were $31.4 million at March 31, down 4 percent from $32.6 million at year-end 1992, and down 54 percent from $68.6 million a year ago. At March 31, TCF's allowance for loan losses was 145 percent of non-accrual loans. "Non-performing asset levels, loan delinquencies and overall credit quality remain better than industry averages," said Cooper.
 TCF provided $7.2 million for loan and real estate losses in the 1993 first quarter, compared with $7.4 million in the 1992 first quarter. Net loan and real estate charge-offs were $3.4 million in the 1993 first quarter, down from $10.7 million in the 1992 first quarter. TCF's allowances for loan and real estate losses totaled $20.3 million at March 31, up from $16.6 million at year-end 1992.
 Total loans were $2.2 billion at March 31, up $20.9 million from year-end 1992. Home equity loans grew by $13.6 million and at March 31 totaled $735.8 million.
 First quarter mortgage production at TCF Mortgage Corporation (TCFMC) totaled $274.7 million, compared with $424.5 million in the 1992 first quarter. At March 31, TCFMC's residential loan servicing portfolio totaled $4.1 billion, up from $3.9 billion at year-end 1992.
 Deposits totaled $3.2 billion at March 31, virtually unchanged from year-end 1992. Lower interest-cost checking and savings deposits totaled $1.2 billion and comprised 37 percent of total deposits. The weighted average rate on total deposits at March 31 was 3.54 percent, down from 3.76 percent at year-end 1992.
 At March 31, TCF had total assets of $3.9 billion, compared with $4 billion at year-end 1992. Book value per share was $21.80, based on 10,079,920 shares outstanding. At March 31, TCF Bank's core capital was 6.18 percent of adjusted assets, tangible capital was 5.73 percent and risk-based capital was 11.23 percent.
 On Dec. 7, 1992, TCF and Republic Capital Group, Inc., Milwaukee, (RCG) signed a definitive agreement for TCF to acquire RCG, a $1 billion thrift holding company, in a stock-for-stock exchange. RCG's savings bank subsidiaries have 24 offices in eastern Wisconsin and six offices in the Chicago area. The acquisition, which will be accounted for as a pooling-of-interest, is awaiting regulatory approval and will be voted on by both companies' shareholders on April 21. TCF expects to complete the acquisition in the second quarter of 1993.
 TCF is the holding company for TCF Bank Savings fsb (TCF Bank), which operates 61 branches in Minnesota, 21 in northern Illinois, and one each in Iowa and Wisconsin. Year-to-date, TCF Bank has opened four in-store branches at Cub Foods stores, three in Minnesota and one in Illinois. 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
 3/31/93 3/31/92
 Selected Operations Data:
 Total Revenues $98,356 $102,333
 Interest income $74,865 $79,694
 Interest expense 37,157 48,301
 Net interest income 37,708 31,393
 Provision for loan losses 4,662 1,512
 Net interest income after
 provision for loan losses 33,046 29,881
 Non-interest income:
 Gain on sale of loans and
 mortgage-backed securities,
 net - 718
 Other non-interest income 23,491 21,921
 Total non-interest income 23,491 22,639
 Non-interest expense:
 Provision for real estate
 losses 2,501 5,884
 Amortization of goodwill
 and other tangibles 564 906
 Other non-interest expense 37,201 35,014
 Total non-interest expense 40,086 41,804
 Income before income tax
 expense 16,451 10,716
 Income tax expense 6,991 2,572
 Net income $9,460 $8,144
 Per common share:
 Net income $.92 $.84
 Dividends declared $.125 $.10
 Financial ratios
 (annualized)(Percent):
 Return on average assets .96 .82
 Return on average equity 17.63 20.13
 Net interest margin 4.12 3.43
 TCF FINANCIAL CORPORATION
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 (Dollars in thousands, except per-share data)
 ASSETS
 At 3/31/93 At 12/31/92
 Cash and due from banks $97,107 $122,130
 Interest-bearing deposits with banks 100 100
 Federal funds sold 60,000 100,000
 U.S. Government and other marketable
 securities (market value of $48,945
 and $92,582) 48,914 92,562
 Federal Home Loan Bank stock, at cost 27,811 26,781
 Loans held for sale 252,267 243,871
 Mortgage-backed securities (market value
 of $1,071,831 and $1,123,001) 1,028,191 1,092,456
 Loans:
 Resident real estate 646,947 623,342
 Commercial real estate 660,633 676,752
 Commercial business 79,389 78,378
 Consumer 859,368 848,059
 Unearned discounts and deferred fees (15,247) (16,336)
 Total loans 2,231,090 2,210,195
 Allowance for loan losses (19,085) (15,459)
 Net loans 2,212,005 2,194,736
 Premises and equipment 47,494 47,091
 Real estate:
 Total real estate 24,464 30,870
 Allowance for real estate losses (1,234) (1,096)
 Net real estate 23,230 29,774
 Accrued interest receivable 26,680 27,392
 Goodwill 15,972 16,446
 Other assets 62,075 56,267
 -- $3,901,846 $4,049,606
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Deposits:
 Checking $587,953 $596,324
 Passbook and statement 604,782 586,122
 Money market 369,209 374,030
 Certificates 1,635,455 1,647,758
 Total deposits 3,197,399 3,204,234
 Securities sold under repurchase agreements 50,000 100,000
 Federal Home Loan Bank advances 355,255 435,255
 Subordinated capital notes 34,500 63,250
 Total borrowings 439,755 598,505
 Accrued interest payable 8,361 7,553
 Accrued expenses and other liabilities 36,611 29,193
 Total liabilities 3,682,126 3,839,485
 Stockholders' equity:
 Common stock, par value $.01 per share,
 70,000,000 shares authorized; 10,079,920
 and 9,998,390 shares issued
 and outstanding 101 100
 Additional paid-in capital 126,426 124,509
 Unamortized deferred compensation (1,830) (1,159)
 Retained earnings, subject to
 certain restrictions 95,472 87,272
 Loan to Executive Deferred Compensation Plan (449) (601)
 Total stockholders' equity 219,720 210,121
 -- $3,901,846 $4,049,606
 TCF FINANCIAL CORPORATION BALANCE SHEETS HIGHLIGHTS
 (DOLLARS IN THOUSANDS, EXCEPT PER-SHARE DATA)
 3/31/93 12/31/92
 Other Financial Condition Data:
 Tangible net worth $203,748 $193,675
 Stockholders' equity to total
 assets (percent) 5.63 5.19
 Book value per share $21.80 $21.02
 Tangible book value per share 20.21 19.37
 Non-performing assets:
 Non-accrual loans $13,136 $9,330
 Real estate and other assets 18,230 23,245
 Total non-performing assets $31,366 $32,575
 TCF Bank Savings fsb regulatory
 capital ratios (percent):
 Tangible capital 5.73 5.35
 Core capital 6.18 5.80
 Risk-based capital 11.23 (a) 11.94
 (a) Reflects the March 1, 1993 redemption of TCF Bank's $28.8 million of 12-5/8 percent subordinated capital notes.
 -0- 4/14/93
 /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

DS -- MN020 -- 5868 04/14/93 16:07 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 14, 1993
Words:1708
Previous Article:HARVARD INTERNATIONAL TECHNOLOGIES ANNOUNCES NEW PRESIDENT
Next Article:AUDIOSCIENCE, INCR?EPORTS FOURTH QUARTER RESULTS
Topics:


Related Articles
NORWEST CORPORATION REPORTS RECORD QUARTERLY AND SIX MONTH EARNINGS
TCF REPORTS 44 PERCENT INCREASE IN SECOND QUARTER NET INCOME
NORTHERN TRUST REPORTS RECORD NET INCOME FOR THE SECOND QUARTER AND FIRST SIX MONTHS OF 1992
SYNOVUS FINANCIAL CORP. REPORTS RECORD THIRD QUARTER; NET INCOME INCREASES 31.2 PERCENT
NORWEST CORPORATION REPORTS RECORD QUARTERLY AND SIX MONTH EARNINGS
U.S. BANCORP EARNINGS JUMP 19 PERCENT
QUARTERLY HIGHLIGHTS: -- Record quarterly earnings, up 20.3 percent from prior year -- Record quarterly earnings per share, up 19.1 percent from...
TCF SECOND QUARTER EARNINGS INCREASE 32 PERCENT TO RECORD LEVEL
FIRST AMERICAN REPORTS 14 PERCENT INCREASE IN SECOND QUARTER EARNINGS; ANNOUNCES RENEWAL OF STOCK REPURCHASE AUTHORIZATION AND DECLARES DIVIDEND
First American Reports 20 Percent Increase in Fourth Quarter Earnings and Declares Dividend

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters