TCF Financial Corp. said Wednesday that mounting loan losses contributed to a 62% decline in its second-quarter profit from a year earlier, to $23.7 million, or 19 cents a share.
The Wayzata, Minn., banking company said the results included a $5 million bump in state income taxes, which accounted for 3 cents a share in losses after one-time gains. Analysts on average estimated a profit of 34 cents a share, according to Thomson Reuters.
The $16.5 billion-asset TCF's loan-loss provision rose nearly fivefold from a year earlier, to $62.9 million, and net chargeoffs rose nearly fourfold, to $26.6 million. The company said it had higher losses in both commercial real estate loans and consumer home-equity loans.
