Revenues were up double-digits, but after-tax charges dinged earnings.
TCF Financial Corp. posted a net loss of $282.9 million, or $1.78 per share, during the first quarter despite an increase in loan and lease revenue. That's because the Wayzata-based national bank took an after-tax charge of almost $300 million to reposition its balance sheet. That was the first quarterly loss in 17 years, but the company's chairman and CEO, William Cooper, said that it was an important move to help better position the company, which has retail and commercial banking operations throughout the U.S.
"Through the elimination of much of the high-cost, long-term debt and the sale of lower yielding, long-term mortgage-backed securities that were significantly limiting our net interest margin, we increased the transparency for the market to see the true franchise value of TCF in future periods," said Cooper.
The company saw big growth in loans and leases during the quarter, mostly by way of higher inventory finance and auto finance revenues. The company's total revenues were up 27 percent from the previous quarter, and up almost 20 percent compared with the same quarter last year, with total net income of $30.3 million, or 21 cents per share last quarter compared with $16.4 million, or 10 cents per share, during the fourth quarter of 2011.Jim Buchta 612-673-7376