TCF Financial in Wayzata, Minn., on Friday reported higher profits, mostly from gains on the sale of auto loans.
The $22.1 billion-asset company earned $56.3 million, or 7% more than a year earlier. Earnings per share were 31 cents, or one penny higher than an estimate of analysts polled by Thomson Reuters.
Fee-based income drove the quarterly results. Noninterest income climbed 7%, to $119 million, on strong loan sales and servicing revenue. Fees from service charges and credit cards declined.
Net interest income rose 3%, to $212 million. Total loan balances were mostly flat, increasing 1%, to just over $17 billion. The provision for credit losses spiked 39%, to $14 million, due to a rise in chargeoffs for auto loans and equipment finance.
The net interest margin compressed 6 basis points, to 4.34%.
Meanwhile, expenses grew 3%, to $229 million, mostly from higher occupancy expenses, as well as an increase in foreclosed real estate and repossessed assets.
