TCF's results inspire 5% share-price gain

TCF Financial Corp. on Tuesday released first-quarter results that were, in analysts' eyes, not that bad.

These days, that's good. The bank's shares rose nearly 5 percent. Net income fell nearly 43 percent, compared with a year earlier.

"TCF's credit performance continues to be impacted by the negative effect of the depressed housing market and slowing economy," the company said in a statement. TCF and analysts noted that contrasts in financial results were clouded by extraordinary events in both periods.

TCF reported an $8.3 million gain on in the first quarter on its share of a Visa USA initial public offering. Visa shares were owned by member banks before going public earlier this year. The Wayzata-based bank also recorded a $6.3 million gain on the sale of mortgage-backed securities.

The year-earlier period included a tax item and gains from the sale of several branch banks.

"I would say the results were a little weaker than I was forecasting, but not as bad as I feared, given what I've seen in some other places," said Ben Crabtree, banking analyst at the Minneapolis office of the brokerage firm Stifel Nicolaus.

"There's no reason to think we're over the hump on credit quality yet," he said.

But Crabtree said he took solace in two key measures that improved in TCF's first quarter: Loan growth and interest margins both exceeded expectations.

Said bank analyst Terry McEvoy, "The results [showed] further deterioration in the company's loan portfolio, but to a lesser degree than what we've seen within the industry."

TCF shares rose 79 cents to close at $17.59.

Mike Meyers • 612-673-1746

2008 2007 % chg. Inter. inc. $245.2 $233.7 +4.9 Nonint. inc. 127.3 143.3 -11.2 Income 47.4 82.7 -42.7 Earn/share 0.38 0.65 -41.5 Figures in millions except for earnings per share.