TCF earnings and stock tank

Shares of TCF Financial, parent company of TCF Bank, closed down 9 percent Tuesday after the company announced a big drop in fourth quarter earnings.

TCF reported net income of $16 million in the final three months of last year, a 52 percent decline from the same period the year before.

CEO Bill Cooper said the quarter saw the full effect of the so-called Durbin Amendment, a cap on the fees banks can charge retailers for debit card transactions.

“TCF’s fourth quarter was impacted by the first-full quarter of the Durbin Amendment, which reduced our fee income on debit cards by almost 50 percent, which impacted us almost $15 million for the quarter,” Cooper said.

TCF relies on fees and service charges for about one fifth of its revenue. Last year revenue from fees and service charges fell by nearly $55 million or about 20 percent compared to 2010.

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Cooper said TCF will continue pursuing ways to increase revenue and reduce costs “as we reposition TCF for the future.”

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