TCF Financial Corp., in its last quarter before it merges with a Michigan bank, saw its profit jump 54% as expenses fell sharply compared with a year ago when it paid to settle a regulatory dispute.
The Plymouth-based firm, which operates Minnesota's third-largest bank by deposits, next week will complete the merger announced earlier this year with Chemical Financial Corp., Michigan's largest bank. Chemical Financial on Wednesday reported an 11% profit jump for the same April-through-June period.
All of TCF's profit gain came from lower expenses as both its net interest income and noninterest income fell slightly compared with the same period last year.
TCF said it earned $90.4 million, up from $58.7 million in last year's second quarter. The latest profit amounted to 54 cents a share. Not counting one-time expenses, mainly merger costs, the company earned 56 cents a share, beating analysts' consensus forecast of 49 cents a share.
Revenue was $363.8 million, down slightly from a year ago. Net interest income fell 0.2% and noninterest income was down 0.6%.
Expenses fell nearly 13%.
TCF and Chemical Financial shareholders approved the $3.6 billion deal last month and the firms received final regulatory approval for it last week. Chemical Financial will buy out TCF shareholders when the deal closes Aug. 1. The ongoing company will keep the TCF name but be based in Detroit.
Evan Ramstad • 612-673-4241
