TCF Financial Corp. (TCB) filed Quarterly Report for the period ended 2009-09-30.
TCF is a Wayzata Minnesota-based national financial holding company. TCF has banking offices in Minnesota Illinois Michigan Wisconsin Colorado and Indiana. Other TCF affiliates provide leasing and equipment finance mortgage banking discount brokerage and investments and insurance sales. They are a national financial holding company of one federally chartered bank TCF National Bank. Tcf Financial Corp. has a market cap of $1.62 billion; its shares were traded at around $12.57 with a P/E ratio of 21.3 and P/S ratio of 1.1. The dividend yield of Tcf Financial Corp. stocks is 1.6%. Tcf Financial Corp. had an annual average earning growth of 7.7% over the past 10 years. GuruFocus rated Tcf Financial Corp. the business predictability rank of 4.5-star.
Highlight of Business Operations:
BANKING, consisting of retail banking, commercial banking, small business banking, consumer lending and treasury services, reported net income of $11.3 million and $49.2 million for the third quarter and first nine months of 2009, respectively, compared with $26 million and $83.3 million for the same 2008 periods. Banking net interest income for the third quarter and first nine months of 2009 was $131.1 million and $379.2 million, respectively, compared with $132.8 million and $388.9 million for the same 2008 periods.
Banking non-interest income totaled $111.7 million for the third quarter of 2009, up 1.2% from $110.4 million for the same 2008 period primarily due to increases in fees and service charges, partially offset by a decrease in investment and insurance revenue. Banking non-interest income totaled $336 million for the first nine months of 2009, up .7% from $333.7 million for the same 2008 period primarily due to a $14.2 million increase in gain on securities, partially offset by an $8.3 million gain in 2008 on the redemption of Visa shares and a $9 million decrease in investment and insurance revenues.
Banking non-interest expense for the third quarter and first nine months of 2009 was $162.6 million and $487.4 million, respectively, compared with $156.6 million and $460.4 million for the same 2008 periods primarily due to increased FDIC premiums and assessments, deposit account premium expenses and increased levels of foreclosed real estate activity.
LEASING AND EQUIPMENT FINANCE, an operating segment composed of TCF’s wholly-owned subsidiaries TCF Equipment Finance, Winthrop Resources and FNCI, provides a broad range of lease and equipment finance products. Leasing and equipment finance reported net income of $7.6 million and $22.7 million for the third quarter and first nine months of 2009, respectively, compared with $7.8 million and $21.5 million for the same 2008 periods. Net interest income for the third quarter and first nine months of 2009 was $26.7 million and $77.9 million, respectively, compared with $19.6 million and $58.2 million for the same 2008 periods.
Leasing and equipment finance non-interest income for the third quarter and first nine months of 2009 totaled $15.2 million and $44.7 million, respectively, up from $13 million and $39.2 million for the same 2008 periods primarily due to an increase in sales-type lease revenue. Leasing and equipment finance revenues may fluctuate from period to period based on customer driven factors not entirely within the control of TCF. Leasing and equipment finance non-interest expense totaled $20.4 million and $58.6 million for the third quarter and first nine months of 2009, respectively, compared with $15.5 million and $49 million for the same 2008 periods primarily as a result of increased compensation from expansion and increased expense for repossessed assets.
Net interest income for the third quarter of 2009 totaled $161.5 million, up from $152.2 million for the third quarter of 2008 and $156.5 million from the second quarter of 2009. Net interest income for the first nine months of 2009 totaled $463.4 million, up from $446.6 million for the same 2008 period. The increase in net interest income from the third quarter of 2008 was primarily attributable to a $995 million, or 7.7%, increase in average loans and leases, partially offset by a five basis point decrease in net interest margin. The increase in net interest income from the second quarter of 2009 was primarily due to a $119.6 million, or .9%, increase in average loans and leases and a 12 basis point increase in net interest margin. The increase in net interest
TCB is in the portfolios of David Dreman of Dreman Value Management, Irving Kahn of Kahn Brothers & Company Inc., Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc.
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