TCF Bank in trouble: Profits halve during fourth quarter

Categories: Business
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TCF Bank took a pounding during the final quarter of 2011.
Anecdotally, TCF Bank seems to be struggling -- in Uptown, for instance, the bank used to have numerous ATMs, but they've all been removed over the last year or so, sometimes replaced with generic machines.

TCF's fourth-quarter earnings report provides hard data to support that anecdote. It reveals that the bank's profits more than halved during the fourth quarter of last year compared to the last quarter of 2010.

Though the report is couched in impenetrable corporate-speak, the gist of it seems to be that TCF's rough 2011 is largely attributable to the fact that the bank isn't allowed to screw over retailers anymore by gouging them with high fees for debit card transactions.

TCF filed a lawsuit against Fed Chair Ben Bernanke to contest the Dodd-Frank financial reform legislation that capped the fees debit card issuers could charge retailers at about 21 cents. The lawsuit was withdrawn last summer.

The earnings report reveals that the bank's non-interest income, which includes debit card fees, fell 24 percent during the fourth quarter last year compared to the same period in 2010.

Whereas US Bank saw its credit quality significantly improve throughout last year, TCF's 60-day loan delinquency rate actually increased both relative to fourth quarter 2010 and 2011's third quarter.

Overall, the bank's fourth-quarter earnings were $16.4 million, or 10 cents per share, down from $33.9 million (or 24 cents per share) during the same time in 2010. Analysts expected profits of 14 cents per share.

Put it all together, and it's clear that TCF Bank is in trouble. US Bank Stadium anyone?

See also:
-- US Bank announces record profits
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8 comments
Womanphoenix
Womanphoenix

Uh-oh!  With the tailspinning of the TCF Coopers, who will save Tony Sutton from himself -- and save the Republican Party of Minnesota from being dominated by the Quist-Emmer TheoCons?

I suspect that the Coopers are no longer going to be the 800-pound gorillas in the MN GOP.  Will rich Fundies like Primera's Bob Cummins rush into the power vacuum, or will the Coopers' fellow West Metro business types stave off the Republicans of Gilead?

Research
Research

Can I make a deposit....Sorry, our systems down.  This happened on my first deposit.  Went to two atms and they were down.  Both issues within a month of opening account.  I am surprised this bank still exist.

Bianca
Bianca

Didn't they just shut down the location in Har Mar Mall in Roseville to move across the street next to Perkins?? I wouldn't necessarily call that a "hit" against them.

Either way, I've been itching to get out.. Soon, soon.

AG
AG

I wonder if it has to do with being the shittiest option for a banking institution...  Fewer things in life felt better than closing my account there, and I urge everyone to do the same. 

atrupar
atrupar

You could be right about that, Bianca. I wasn't aware of that, but that would make my lede a little unfair. I'll revise.

Jdmover
Jdmover

I got out on "close your bank account day", felt very liberating

Womanphoenix
Womanphoenix

Aaron, they've also shut down virtually ALL their downtown Minneapolis ATM machines -- they started pulling them all last summer.  The only ones left downtown that I know of are the two in the IDS Center -- and there used to be three of them.

My guess is that propping up Cooper State Bank and Baja Sol got to be too much for them in this financial climate.

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