The shares trade for 1.2 times tangible book value, according to Thomson Reuters Bank Insight, and for less than ten times the consensus 2013 EPS estimate of $1.03. The consensus 2012 earnings estimate is a net loss of $1.18 a share. During the first quarter, TCF reported a net loss of $282.9 million, or $1.78 a share, as the company repositioned its balance sheet by reducing its long-term borrowings.
Based on a five-cent quarterly payout, the shares have a dividend yield of 2.01%.
For the second quarter, TFG reported net income available to common shareholders of $31.5 million, or 20 cents a share, increasing from $30.4 million, or 19 cents a share, during the second quarter of 2011.Second-quarter net interest income increased 9% year-over-year, to $144.1 million, which together with $13.1 million in gains on securities, more than offset a 14% year-over-year decline in fees and other revenue to, to $99.8 million. The decline in fee revenue mainly reflected the implementation of the Durbin Amendment's caps on debit card interchange fees during the fourth quarter of 2011. With a full quarter's benefit of the balance sheet restructuring, TCF's net interest margin expanded to a very impressive 4.86%, from 4.14% the previous quarter, and 4.02% a year earlier. O'Connor's price target for TCF is $13, and the analyst estimates the company will earn post a fully-year net loss of $1.22 for 2012, followed by earnings of $1.15 a share in 2013. The analyst said on Thursday that "TCB shares declined meaningful after reporting 2Q results--likely due to concerns over credit... however, credit quality continues to be lumpy at TCF (charge-offs were down sharply in 1Q for example) and other trends should be viewed as a relief," since "service charges rebounded off very low levels, NIM was above mgmt guidance." O'Connor expects TCF's reintroduction of free checking accounts to initially reduce fee income by about $6 million per quarter, but said that "over time, the change in account offerings should drive higher deposits (help NIMs and higher service fees)." TCB data by YCharts
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