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TCF Financial Profit Falls

But earnings are a penny ahead of estimates.

TCF Financial


, 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.

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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.

This story was created through a joint venture between and IRIS.