Compass Point Research Comments On TCF Financial; Raises PT To $16

Compass Point Research is increasing its price target on TCF Financial TCB to $16 from $14 and reiterates its neutral rating on shares of TCB. Compass Point is increasing its 2011E EPS from $0.73 to $0.77 and decreasing 2012E EPS from $1.25 to $1.07. Compass Point's 2011E estimate increase is reflective of slightly higher NIM and lower provision, which is offset by lower fee revenue. Driving its 2012E estimate reduction are lower fee revenues and higher provision expense, partially offset by slightly higher net interest income. TCB reported EPS of $0.20 vs. our estimates of $0.17. Core revenues decreased 2.1% QoQ to $288.3M driven by lower fee and services charges due to lower total accounts and a change in overdraft policy. Net interest income was essentially flat QoQ as lower deposit costs offset a decline in loan yields as the company shifted their consumer real estate portfolio to be more asset sensitive. Non interest expenses increased 1.8% QoQ driven primarily by an increase in compensation expense. TCB is trading higher at $15.50