* Q2 EPS $0.32 vs est $0.27
* Net interest income up 13 pct
* Provision for credit losses fall 21 pct
* NPAs rise 10 pct sequentially
(Recasts; adds analysts' comments, details, updates stock
By Abhinav Sharma
BANGALORE, July 15 TCF Financial Corp's (TCB.N)
second-quarter profit nearly doubled, beating market estimates,
helped by a jump in interest income, but a rise in
non-performing assets pulled the stock down 6 percent.
Investors seem concerned with the increase in the company's
non-performing assets and some of the underlying credit trends,
analyst Terry McEvoy of Oppenheimer & Co told Reuters.
Non-performing assets were up 10 percent at $448.1 million
from the first quarter, mainly due to a 16 percent rise in
OREOS, or other real estate-owned loans.
"They certainly have a lot of real-estate exposure,
specifically consumer real estate, but what drove this
sequential increase was the commercial real estate," analyst
Scott Siefers of Sandler O'Neill said.
For the second quarter, the company earned $45 million, or
32 cents a share, compared with $23.5 million, or 8 cents a
share, last year.
Analysts on average expected a profit of 27 cents a share,
before items, according to Thomson Reuters I/B/E/S.
"Our improving financial results are fueled by both
increased revenues and decreased expenses, including a decrease
in credit costs," Chief Executive William Cooper said in a
The company said net interest income rose to $176.5 million
from $156.5 million, while fee income was up marginally at
Provision for credit losses fell about 21 percent to $49
million. Net charge-offs dropped 13 basis points to 1.3
Shares of the company were down $1.07 at $16.45 in midday
trade Thursday on the New York Stock Exchange.
(Reporting by Abhinav Sharma in Bangalore; Editing by Aradhana
Aravindan, Unnikrishnan Nair)