TCF Financial Profit Falls

But earnings are a penny ahead of estimates.
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TCF Financial

(TCB)

, the Minnesota-based holding company for TCF National Bank, said earnings slipped from a year ago due to a rise in its noninterest expense.

The company earned $65.5 million, or 50 cents a share, in the quarter, compared with earnings of $67.4 million, or 50 cents a share, a year ago. The number of average diluted shares outstanding fell by 2.8%, year over year.

Fourth-quarter revenue totaled $254.3 million. Analysts were forecasting earnings of 49 cents a share on revenue of $254.5 million, according to Thomson First Call.

Net interest income, the difference between what a bank makes on its investments and loans and the money it pays out to depositors, was up 2.2% to $129.2 million from $126.5 million. Net interest margin, a measure of the profitability of a bank's deposit and investment operation, dropped to 4.31% for this quarter from 4.56% a year ago.

Total non-interest income in the fourth quarter of 2005 was $125 million, down $7.4 million, or 5.6%. On the other hand, non-interest expense moved up to $158.5 million, up $4.2 million, or 2.7%.

The bank announced an 8.2% increase in the regular quarterly dividend to 23 cents, effective for the first quarter of 2006.

"2005 was a challenging year for TCF. Despite a flat yield curve and the deposit service charge challenges facing the banking industry in 2005, TCF produced record results," said Lynn A. Nagorske, chief executive officer.

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