TCF Reports YTD Profit up 34.5%; ‘Industry-Leading’ 4.60% Margin



TCF Financial reported Q3/14 net income of $52.3 million, up 22.2% compared with net income of $42.8 million for Q3/13. The company said net income of $150.2 million for the first nine months of 2014 was up 34.5% compared with net income of $111.7 million for the same period in 2013.

Highlights from the TCF Financial news release:

  • Leasing and equipment finance Q3/14 and YTD revenue of $24.4 million and $69.4 million, respectively was down 15.3% and up 2.7% compared to $28.8 million and $67.6 million for the same periods in 2013. TCF said the decrease from Q3/13 was primarily due to customer-driven events impacting sales-type lease revenue.
  • Net interest margin in Q3/14 was an “industry-leading 4.60%,” compared with 4.62% in the Q3/13 and 4.65% in Q2/143. The decreases from both periods were primarily due to continued margin compression resulting from the increasingly competitive low interest rate environment.
  • Period-end leasing and equipment finance balances of $3.63 billion were up 10.5% from $3.29 billion at end of the same period in 2013.
  • Loan and lease originations in Q3/14 were $3.6 billion, up 14.9% from the same period in 2013. TCF noted that the increase included growth in leasing and equipment finance.
  • The provision for credit losses in Q3/14 was $15.7 million, down 36.0% from $24.6 million a year earlier.

“TCF reported another steady quarter of profitability, with earnings of 29 cents per share and a strong return on average assets of 1.15% and return on average tangible common equity of 12.11%, while maintaining an industry-leading net interest margin of 4.60%,” said William A. Cooper, chairman and chief executive officer.

“TCF’s growth is driven by a unique loan and lease origination capability funded by an increasing, low-cost deposit base. Strong loan and lease originations during the quarter continued to provide a growing source of non-interest income through loan sales and servicing revenue, as well as TCF’s first auto loan securitization completed in July. I believe TCF’s ability to generate national loan and lease growth while developing a diversified revenue base positions us to deliver long-term shareholder value.”

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


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