Shares of TCF Financial ( TCB) of Wayzata, Minn., closed at $9.97 Wednesday, declining 2.5% year-to-date, following a 29% decline during 2011. 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 Interested in more on TCF Financial? See TheStreet Ratings' report card for this stock.