Auto Loans Giveth and Taketh Away at TCF

Register now

TCF Financial in Wayzata, Minn., reported sharply higher profits driven by gains on the sale of auto loans even as auto-related chargeoffs rose.

First-quarter earnings at the $21 billion-asset company increased 21% to $48 million. Earnings per share were 26 cents, or one penny higher than an estimate of analysts polled by Bloomberg.

Specialty lines of business boosted profits. Noninterest revenue jumped 12%, thanks to the increase in auto loan sales as well as growth in equipment-financing fees.

Meanwhile, net interest income rose 4% to $212 million. Total loans grew 2% to $18 billion. The net interest margin narrowed 13 basis points, to 4.37%.

The provision for loan losses jumped 47% to $19 million. The company attributed part of the increase to higher chargeoffs in its auto book.

Expenses held steady, rising just 1% to $228 million.

For reprint and licensing requests for this article, click here.
M&A Auto lending Minnesota
MORE FROM AMERICAN BANKER