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TCF REPORTS IMPROVED THIRD QUARTER EARNINGS

 EARNINGS SUMMARY
 ($ in thousands, except per-share data)
 Three Months Nine Months
 Ended Sept. 30, Ended Sept. 30,
 1993 1992 1993 1992
 Before merger-related charges:
 Income $12,059 $11,395 $33,730 $31,333
 Earnings per share .96 .93 2.70 2.60
 Net income 12,059 11,395 25,836 31,333
 Earnings per share .96 .93 2.07 2.60
 Dividends paid per share .1875 .125 .50 .35
 Return on average assets
 (pct.) .98 .90 .92(1) .84
 Return on average equity
 (pct.) 17.29 19.09 16.53(1) 18.59(1)
 (1) Before merger-related charges
 MINNEAPOLIS, Oct. 18 /PRNewswire/ -- TCF Financial Corporation (TCF) (NYSE: TCB), a $5 billion stock savings bank holding company based in Minneapolis, today reported third quarter 1993 net income of $12.1 million, a 6 percent increase from $11.4 million for the 1992 third quarter. On a per-share basis, TCF earned 96 cents for the 1993 third quarter, up from 93 cents for the same period in 1992. Income before taxes was $21.2 million for the 1993 third quarter, up 41 percent from $15 million for the 1992 third quarter. TCF's tax rate was lower in 1992 as a result of non-recurring tax benefits.
 TCF's return on average assets was 0.98 percent for the 1993 third quarter, compared with 0.90 percent for the 1992 third quarter. Return on average equity was 17.29 percent for the 1993 third quarter, compared with 19.09 percent for the same period in 1992.
 For the 1993 first nine months, net income totaled $25.8 million, or $2.07 per share, compared with $31.3 million, or $2.60 per share, for the 1992 first nine months. Excluding after-tax charges related to TCF's second quarter 1993 acquisition of Republic Capital Group, Inc., year-to-date income totaled $33.7 million, or $2.70 per share. Income tax expense for the 1993 first nine months totaled $19.5 million, or 43 percent of pretax income, compared with $11.2 million, or 26 percent of pretax income, for the comparable 1992 period.
 TCF Chairman and Chief Executive Officer William A. Cooper said the results were consistent with TCF's focus on community banking. "Our net interest income and capital position remained strong, fee income continued to show a healthy increase, and our non-performing assets declined. Before taxes, our third quarter income was 41 percent higher than last year," said Cooper.
 Cooper added that TCF's priorities would be to grow core earnings, maintain credit quality and capital levels, and further increase the company's share of the Upper Midwest market. "In the third quarter, we expanded our community banking franchise into Michigan, our fifth midwestern state, and announced an agreement to add the 13 western Wisconsin offices of First Federal Bank of Eau Claire. When the Wisconsin acquisition is completed, TCF will have 198 banking, mortgage, finance and title company offices. We believe our expanded franche? will position TCF for continued growth," said Cooper.
 Net interest income was $46.7 million for the 1993 third quarter, up 10 percent from $42.3 million for the 1992 third quarter. TCF's net interest margin was 4.09 percent for the 1993 third quarter, compared with 3.59 percent for the 1992 third quarter and 4.18 percent for the 1993 second quarter. For the 1993 first nine months, net interest income and net interest margin were $138.1 million and 4.06 percent, respectively, compared with $122.8 million and 3.54 percent for the same 1992 period. 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 increased capital. The decrease in net interest margin from the 1993 second quarter was due to lower yields on earning assets and the Michigan deposit acquisition, partially offset by a lower cost of funds.
 Fee income (non-interest income excluding gains on sales of mortgage-backed securities, investments, and loan servicing) totaled $31.6 million for the 1993 third quarter, up 21 percent from $26.1 million for the same 1992 period. Included in the 1993 third quarter total were gains of $4.1 million on the sale of loans held for sale, compared with $1.3 million in the 1992 third quarter. Year-to- date, fee income totaled $87.7 million, up 11 percent from $78.8 million for the same 1992 period. The improvement was mainly due to the increased volumes of deposit, insurance and mortgage banking activities.
 Operating expenses (non-interest expense excluding the provision for real estate losses and 1993 merger-related restructuring charges) totaled $51.2 million for the 1993 third quarter, up 14 percent from $45 million a year ago. For the 1993 first nine months, operating expenses totaled $144.6 million, up 9 percent from $132.5 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 the Michigan acquisition. Also reflected in the 1993 totals were write-offs of $2.1 million in the third quarter and $3.6 million year-to-date of purchased mortgage servicing rights due to accelerated prepayments. Operating expenses for the 1992 first nine months reflected $634,000 in similar write-offs.
 TCF provided $4.3 million for credit losses and $1.8 million for real estate losses in the 1993 third quarter, compared with $3.9 million and $4.4 million, respectively, in the 1992 third quarter. Net loan charge-offs were $5.9 million in the 1993 third quarter, compared with $5 million in the 1992 third quarter. At Sept. 30, TCF's allowance for loan losses totaled $26.5 million, up from $19.2 million at year-end 1992, and was 168 percent of non-accrual loans.
 Non-performing assets (principally real estate acquired through foreclosure and non-accrual loans) were $42.2 million at Sept. 30, down from $55.9 million at June 30 and $52.7 million at year-end 1992.
 Total loans were $2.7 billion at Sept. 30, up $58.1 million from year-end 1992, with a $100.8 million reduction in commercial real estate loans offset by a $140.3 million increase in residential real estate loans. At Sept. 30, TCF's home equity loan portfolio totaled $764.4 million.
 Residential mortgage originations totaled $582.9 million in the 1993 third quarter, up 27 percent from $458 million in the same 1992 period. Year-to-date residential mortgage originations were $1.6 billion, up 14 percent from $1.4 billion in the 1992 first nine months. At Sept. 30, TCF Mortgage Corporation's residential servicing portfolio totaled $5 billion, compared with $4.7 billion at year-end 1992. "Lower interest rates continue to make housing more affordable and support exceptionally strong mortgage originations," said Cooper.
 Deposits totaled $4.1 billion at Sept. 30, up $63.3 million from year-end 1992. At Sept. 30, lower interest-cost checking and savings deposits totaled $1.6 billion and comprised 38 percent of total deposits. The weighted average rate on total deposits at Sept. 30 was 3.31 percent, down from 3.95 percent at year-end 1992.
 At Sept. 30, book value per share was $23.10 based on 12,358,361 shares outstanding. TCF Bank Minnesota fsb continued to exceed the regulatory capital requirements, with core capital of 6.09 percent of adjusted assets, tangible capital of 5.47 percent and risk-based capital of 11.86 percent.
 During the 1993 third quarter, TCF acquired $220.8 million of insured deposits and 15 offices of First Federal Savings and Loan Association, Pontiac, Mich., from the Resolution Trust Corporation. TCF also acquired $25.2 million of deposits and the Lombard office of Prospect Federal Savings Bank, Worth, Ill. In addition, TCF signed a definitive agreement for First Federal Bank of Eau Claire, F.S.B., Wis., a $374 million mutual savings bank with 13 western Wisconsin offices, to join the TCF group of banks in a merger conversion.
 TCF has $5 billion in assets and 131 banking offices in Minnesota, Illinois, Wisconsin, Michigan and Iowa. TCF will open offices in two Minnesota Cub Foods stores, one in White Bear Lake and the other in Maple Grove, later this month.
 TCF FINANCIAL CORPORATION AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (In thousands, except per-share data)
 (Unaudited)
 Three Months Ended Nine Months Ended
 9/30/93 9/30/92 9/30/93 9/30/92
 Interest income:
 Interest on loans $63,828 $67,549 $188,751 $202,707
 Interest on mortgage-
 backed securities 22,771 26,449 71,464 81,576
 Interest on investments 2,599 5,419 9,076 16,719
 Total interest income 89,198 99,417 269,291 301,002
 Interest expense:
 Interest on deposits 33,337 44,771 103,016 144,951
 Interest on borrowings 9,202 12,329 28,185 33,260
 Total interest expense 42,539 57,100 131,201 178,211
 Net interest income 46,659 42,317 138,090 122,791
 Provision for credit losses(a) 4,282 3,930 19,793 10,761
 Net interest income after
 provision for credit losses 42,377 38,387 118,297 112,030
 Non-interest income:
 Other fees and service charges 18,437 17,122 52,543 49,032
 Data processing revenue 2,129 1,841 5,991 5,448
 Gain on sale of mortgage-backed
 securities, net -- -- -- 718
 Gain on sale of investments, net -- -- -- 114
 Gain on sale of loans
 held for sale, net 4,145 1,324 6,919 6,018
 Gain on sale of securities
 held for sale, net -- 22 649 1,348
 Gain on sale of loan servicing 137 -- 137 --
 Commissions on sales
 of annuities 2,100 2,312 7,705 7,331
 Title insurance revenues 3,926 2,836 10,931 7,269
 Other 905 653 2,922 2,347
 Total non-interest income 31,779 26,110 87,797 79,625
 Non-interest expense:
 Compensation and
 employee benefits 22,531 20,199 65,303 60,281
 Occupancy and equipment, net 8,206 7,547 23,869 22,034
 Advertising and promotions 2,875 2,437 8,059 7,218
 Federal deposit insurance
 premiums and assessments 2,469 2,420 6,502 7,238
 Amortization of goodwill and
 other intangibles 737 958 1,969 2,872
 Provision for real
 estate losses (b) 1,849 4,432 10,643 16,600
 Merger-related restructuring
 expense -- -- 5,494 --
 Other 14,332 11,455 38,928 32,870
 Total non-interest expense 52,999 49,448 160,767 149,113
 Income before income
 tax expense 21,157 15,049 45,327 42,542
 Income tax expense 9,098 3,654 19,491 11,209
 Net income $12,059 $11,395 $25,836 $31,333
 Per common share:
 Net income $.96 $.93 $2.07 $2.60
 Dividends declared $.1875 $.125 $.50 $.35
 Financial ratios (annualized)
 (percents)
 Return on average assets .98 .90 .71 .84
 Return on average equity 17.29 19.09 12.66 18.59
 Net interest margin 4.09 3.59 4.06 3.54
 (a) For the nine months ended Sept. 30, 1993, includes $7,000 in merger-related provisions.
 (b) For the nine months ended Sept. 30, 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)
 ASSETS
 at 9/30/93 at 12/31/92
 Cash and due from banks $141,207 $140,779
 Interest-bearing deposits with banks 30,710 26,534
 Federal funds sold 52,200 100,000
 U.S. Government and other marketable
 securities (market value of
 $124,040 and $134,354) 123,913 133,629
 Federal Home Loan Bank Stock, at cost 36,148 33,601
 Securities held for sale (market value
 of $10,322 and $261,295) 10,003 256,624
 Loans held for sale 336,959 285,524
 Mortgage-backed securities (market value
 of $1,406,615 and $1,171,647) 1,360,944 1,139,583
 Loans:
 Residential real estate 999,009 858,685
 Commercial real estate 728,165 828,995
 Commercial business 81,613 80,312
 Consumer 920,973 906,661
 Unearned discounts and
 deferred fees (14,724) (17,727)
 Total loans 2,715,036 2,656,926
 Allowance for loan losses (26,507) (19,249)
 Net loans 2,688,529 2,637,677
 Premises and equipment 75,463 64,392
 Real estate:
 In judgment and acquired through
 foreclosure 26,326 36,574
 Held for development 70 10,390
 Total real estate 26,396 46,964
 Allowance for real estate losses (2,909) (2,291)
 Net real estate 23,487 44,673
 Accrued interest receivable 30,542 33,767
 Due from brokers -- 36,087
 Goodwill 15,023 16,446
 Deposit base intangibles 17,018 3,135
 Other assets 67,221 69,145
 -- 5,009,367 5,021,596
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Deposits:
 Checking 735,155 728,950
 Passbook and statement 826,091 724,409
 Money market 481,805 462,507
 Certificates 2,024,956 2,088,842
 Total deposits 4,068,007 4,004,708
 Securities sold under repurchase
 agreements 149,104 100,000
 Federal Home Loan Bank advances 396,332 516,337
 Subordinated capital notes 34,500 63,250
 Other borrowings 15,322 22,345
 Total borrowings 595,258 701,932
 Accrued interest payable 11,077 8,936
 Accrued expenses and other liabilities 49,515 44,235
 Total liabilities 4,723,857 4,759,811
 Stockholders' equity:
 Common stock, par value $.01 per
 share, 70,000,000 shares
 authorized; 12,358,361 and
 12,106,615 shares issued and
 outstanding 124 121
 Additional paid-in capital 150,492 146,890
 Unamoratized deferred compensation (1,406) (1,159)
 Retained earnings, subject to
 certain restrictions 136,684 116,569
 Loan to Executive Deferred
 Compensation Plan (384) (601)
 Loan to employee stock
 ownership plan -- (35)
 Total stockholders' equity $5,009,367 $5,021,596
 BALANCE SHEET HIGHLIGHTS
 (Dollars in thousands, except per-share data)
 At 9/30/93 At 12/31/92
 Other Financial Condition Data:
 Tangible net worth $270,487 $245,339
 Stockholders' equity to total assets 5.70 pct. 5.21 pct.
 Book value per share $23.10 $21.62
 Tangible book value per share 21.89 20.26
 Non-performing assets:
 Non-accrual loans $15,825 $16,056
 Real estate and other assets 26,408 36,605
 Total non-performing assets $42,233 $52,661
 TCF Bank Minnesota fsb regulatory
 capital ratios: (percents)
 Tangible capital 5.47 5.39
 Core capital 6.09 5.78
 Risk-based capital 11.86 11.98
 -0- 10/18/93
 /CONTACT: Cynthia A. Wind, Investor Rel., 612-661-8859, or Elizabeth Anders, Media Rel., 612-661-8853, of TCF Financial/
 (TCB) CO: TCF Financial ST: Minnesota IN: FIN SU: ERN


CP-DS -- MN018 -- 3525 10/18/93 15:54 EDT
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Date:Oct 18, 1993
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