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What: Shares of regional bank TCF Financial
So what: Investors have not been particularly forgiving of regional banks that have missed Wall Street's earnings estimates. Yesterday, I looked at Marshall & Ilsley
Now what: Wall Street's earnings expectations tend to get far too much attention, so it's important to look past the headline numbers to figure out if there's really something to be concerned about. For TCF, investors will want to keep a very close eye on credit quality. During the quarter, both charge-offs and non-performing assets rose significantly, even as the bank let its credit-loss reserves drop. In addition, TCF is taking legal action against the debit card fee section of the Dodd-Frank financial reform bill, suggesting that if the section stands it will have a significant impact on TCF. TCF has thus far weathered the financial storm better than many other banks, but this quarterly report does make it clear that the bank isn't through the bumpy ride quite yet.
Interested in more info on TCF Financial? Add it to your watchlist here by clicking here.
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Fool contributor Matt Koppenheffer does not own shares of any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or on his RSS feed. The Fool’s disclosure policy assures you no Wookiees were harmed in the making of this article.