Low interest rates continue to constrain growth at TCF Financial in Wayzata, Minn.
The $20 billion-asset company reported earnings of $47.7 million in the third quarter, or about 1% more than a year earlier. Earnings per share were 29 cents, in line with an estimate of analysts polled by Bloomberg.
Net interest income inched up 1%, to $205.3 million, as higher revenue from TCF’s fast-growing auto and inventory finance units was offset by lower yields.
Total loans grew 5%, to $17.2 billion. The net interest margin contracted 20 basis points, to 4.4%.
Fee-based revenue declined by 3%, to $11.3 million. The company attributed the drop to “changes in consumer behavior” as well as higher average checking account balances.
Noninterest expenses edged up 1%, to $222.3 million, mostly from higher salary costs.