TCF Financial reported Q4/14 net income of $24.0 million compared with net income of $40.0 million for Q4/13. Diluted earnings per common share was $0.12 cents for Q4/14. Analysts polled by Thomson Financial had expected Q4/14 EPS of $0.29. TCF noted Q4/14 earnings were hurt by a pre-tax charge related to the sale of consumer troubled debt restructurings and additional provisions for credit losses during Q4/14.

TCF net income of $174.2 million for the year 2014 compared with net income of $151.7 million for the same period in 2013.

The following highlights were excerpted from the TCF news release:

• The net interest margin in Q4/14 was 4.49%, which was down from 4.67% in the same quarter one-year ago. TCF said the decrease was primarily due to continued margin reduction resulting from the competitive low interest rate environment.
• The yield on inventory finance loans was 5.56% in Q4/14, compared with 5.85% in Q4/13. TCF said the decrease was primarily attributable to one-time impact from a significant program extension.
• Period-end commercial leasing and equipment finance average outstandings in Q4/14 were $3.61 billion, up 8.1% from $3.34 billion a year earlier.
• The Q4/14 provision for loan losses of $55.6 million was up 70% from $32.8 million in Q4/13. TCF noted the increase resulted primarily from a portfolio loan sale that increased the provision in Q4/14.

William A. Cooper, chairman and CEO said, “Despite a pre-tax charge of $0.17 related to the sale of consumer troubled debt restructurings and additional provision for credit losses during the fourth quarter. This sale allowed us to reduce balance sheet credit risk and provide further diversification of our loan and lease portfolio by reducing the high concentration of legacy consumer real estate loans. I believe that the clean-up of this portfolio gives us a fresh start and will significantly reduce credit and operating costs as we move into 2015.”

Cooper added, “Overall, 2014 was highlighted by strong loan and lease originations, a focus on diversification of both revenue and earning assets, one of the highest net interest margins in the industry and continued strong credit quality particularly in our national lending businesses. While I am pleased with where we stand today, our focus is on the future and I believe we have the team in place to fulfill our goals moving forward.”

To view the full TCF Financial news release, click here.