TCF Financial Corporation (TCF) Tops Q2 EPS by 3c

TCF Financial Corporation (NASDAQ: TCF) reported Q2 EPS of $0.54, $0.03 better than the analyst estimate of $0.51.

Second Quarter 2020 Highlights

• Quarterly net income of $23.8 million, or $0.14 per diluted share, down 54.2% from the first quarter of 2020
• Adjusted diluted earnings per common share of $0.54(1), down 5.3% from the first quarter of 2020. Adjusted diluted earnings per common share excludes $61.1 million, or $0.40 per share, after-tax impact of merger-related expenses and notable items
• Assisted customers via COVID-19-related loan and lease deferrals with $1.8 billion of balances on deferral status as of June 30, 2020 ($1.5 billion of commercial balances and $327.1 million of consumer balances)
• Assisted business and commercial customers via $1.9 billion of total loans funded through the Paycheck Protection Program ("PPP")
• Completed the sale of seven Arizona branches resulting in a gain on sale of $14.7 million
• Loan and lease balances declined 1.1% from March 31, 2020, primarily due to declines in the commercial and industrial and residential mortgage portfolios, partially offset by the addition of $1.8 billion of Paycheck Protection Program ("PPP") loans
• Deposit growth of 9.5% compared to March 31, 2020
• Net charge-offs of $3.4 million, or 0.04% of average loans and leases (annualized)
• Provision for credit losses of $78.7 million, down 18.8% from the first quarter of 2020
• Efficiency ratio of 78.26%, up 869 basis points from the first quarter of 2020. Adjusted efficiency ratio of 59.80%(1), up 156 basis points from the first quarter of 2020
• Common equity Tier 1 capital ratio of 11.09%, compared to 10.44% at March 31, 2020
• Declared quarterly cash dividends on common stock of $0.35 per share payable on September 1, 2020

"During the second quarter, we continued to demonstrate the resiliency and strength of TCF during this period of economic uncertainty, low interest rates, and global pandemic,” said Craig R. Dahl, president and chief executive officer. “Our focus remains on ensuring the safety and well-being of our team members, and the financial well-being of our customers and our communities. We continued to forge ahead with our integration activities during the quarter and we remain on track for the on-time completion of our integration program during the third quarter. We remain confident in our ability to deliver on the cost synergies we committed to for the fourth quarter of this year.

“We have been active in supporting small businesses in our communities by funding $1.9 billion of loans through the PPP. We have also extended loan and lease deferrals to provide financial relief to our commercial and consumer customers, while continuing to support the broader financial needs of our customers.

“We believe TCF is well positioned with strong capital levels and substantial liquidity as we face a low interest rate environment and uncertain economic outlook. Our lending portfolios also benefit from diversification across both geographies and asset classes.

“Our team members are working extremely hard to ensure we support our customers in this current economic environment, while delivering on our commitment to being a premier Midwest bank with the size and scale to compete and win in our markets.”

For earnings history and earnings-related data on TCF Financial Corporation (TCF) click here.

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