http://suprastock.blogspot.com/2009/07/5-bank-stocks-youd-be-...
The government backstop has meant more for the large money center banks than the smaller regional banks. As a result, TCF Financial ( TCB ) shares have gained some 28% as opposed to the bigger gains at the larger banks.
TCB was somewhat of a renegade with respect to government assistance. They paid back the TARP earlier than most other banks and made a cottage industry of being the bank that turned its back on government handouts. Such a position resulted in gains in deposits. With a steep yield curve, more deposits translate to higher revenues.
That said, the company still faces an uphill battle as regional economic difficulties result in defaults on both consumer and commercial loans. And fears of a blow-up in commercial loans may be keeping TCB stock down.
But I think such fears are overdone. The economy is turning around, albeit slowly. There is still time to own TCB at levels well below my $30 target.
$14.13 (07/20/09)
