TCFC: Loan Growth, Expense Control, Asset Quality All Moving in Right Direction; Raising Price Target, Reiterating Outperform Rating.
TCFC reported 2Q19 net income of $3.6 million, down 6.4% compared to the $3.9 million posted in 1Q19. On a per share basis, 2Q19 results were $0.65 compared to the $0.70 recorded in the prior quarter. Reported EPS fell short of our $0.71 estimate by $0.06, and the median Street estimate of $0.69 by $0.04. The underperformance was primarily driven by higher-than-anticipated non interest expenses (mainly OREO expenses) and lower net interest income, offset partially by a lower-than-projected loan loss provision and higher non interest income. Highlights from the quarter include: