On Jun 11, 2014, we issued an updated research report on
TCF Financial Corporation
). This Minnesota - based bank exhibits decent fundamentals amid a
competitive banking environment.
TCF Financial's improving deposits continue to complement its
organic growth potential. The company has been able to sustain
growth in its deposit balances over the past few years. Total
deposits have grown at a 5-year CAGR of 5.7% (2009-2013). Further,
during first-quarter 2014, deposits grew 2.6% sequentially,
reflecting the 14th consecutive quarter of growth.
TCF Financial's solid capital position is reflected by its efforts
in enhancing shareholder value. For first-quarter 2014, the
company's common dividend payout ratio was 20.83%. Moreover, over
the last 3 years, the company enhanced shareholder value by
returning over $115 million through dividends. We view TCF
Financial as a sound asset for yield-seeking investors.
TCF Financial's first-quarter 2014 earnings per share of 24 cents
were in line with the Zacks Consensus Estimate. However, the figure
was up 50% from the prior-year quarter earnings. Results reflected
improved top line and lower provision for credit losses, partially
offset by increased non-interest expenses.
Despite the positives, we remain cautious owing to several issues
faced by TCF Financial. These include a continuous decline in card
revenues that account for a significant part of fee revenue,
increasing level of non-interest expenses and the prevailing
stringent regulatory landscape.
Analysts' mixed stance on the stock was reflected in the movement
of the Zacks Consensus Estimate over the past 60 days. For 2014,
the Zacks Consensus Estimate remained stable at $1.10 per share
while it fell nearly 1% to $1.27 per share for 2015.
TCF Financial's currently carries a Zacks Rank #3 (Hold).
Stocks That Warrant a Look
Capital City Bank Group Inc.
KCG Holdings, Inc.
Commerce Bancshares, Inc.
) are among the better-ranked stocks in the finance sector. Both
Capital City and KCG Holdings sport a Zacks Rank #1 (Strong Buy)
while Commerce Bancshares holds a Zacks Rank #2 (Buy).
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TCF FINL CORP (TCB): Free Stock Analysis Report
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