TCF reports record income for quarter
Sheila Lalwani
Star Tribune
Thursday, July 19, 2001
Leasing, mortgage and fee income helped TCF Financial Corp. reach a record net income of $52 million for the second quarter, up 8 percent from a year ago.
The 67-cents-per-share results beat analysts' consensus estimates by 3 cents.
Net interest income rose 8 percent to $119 million, due largely to a rise in loan volume and a drop in interest paid on deposits. Total loans and leases were up 18.7
percent to $5.2 billion.
Leasing and equipment finance loans rose 42 percent to $929 million. Commercial real estate loans rose 24.5 percent to $1.48 billion. Commercial loans rose 15
percent to $418 million, and consumer loans grew 9 percent to $2.3 billion.
Fees and other non-interest income rose 18 percent to $95.7 million for the quarter, due to an increase in service charges, electronic funds transfer revenue, debit
cards and leasing business. However, fees from investments and insurance fell 12.1 percent to $3 million because of the economic slowdown.
The $11.6 billion bank saw a slight increase in its net interest margin during the quarter, as the average rate the bank paid on deposits fell from 2.81 percent to 2.57
percent.
CEO and Chairman Bill Cooper credited the record quarter to TCF's rapid branch expansion, which has provided low-cost funds to finance higher-interest
consumer and real-estate loans.
The Wayzata-based bank has opened scores of branches in supermarket chains and grocery stores throughout the Midwest, expanding from 217 branches to 360
during the past 3½ years. TCF plans to open another 15 to 20 branches this year, and 30 more in 2002.
Mortgage refinancings and originations grew during the quarter thanks to declining interest rates. Mortgage banking revenue hit $4.2 million. Cooper said the
refinancing boom has started to flatten out but that originations remain strong.
Deposits rose 3.3 percent to $6.9 billion.
-- Sheila Lalwani is at slalwani@startribune.com . |
