TCF in Minnesota Delays 3Q Results Over New Regulatory Guidance

TCF Financial (TCB) in Wayzata, Minn., has delayed the release of its third-quarter results to give itself more time to review how it will implement regulatory guidance on consumer loans subject to bankruptcy discharge.

The $17.9 billion-asset company was set to release its results and host a conference call on Friday morning. Instead, the company will push those events back by a week, TCF said after the market closed on Thursday.

The Office of the Comptroller of Currency ordered banks in June to follow new guidelines regarding the treatment of mortgage loans where the borrower has gone through Chapter 7 bankruptcy. Even if the loans are performing, the OCC is requiring banks to move the loans to nonaccrual status because they are at higher risk for default.

Citigroup (NYSE: C), JPMorgan Chase (JPM) and Wells Fargo (WFC) are among the banking companies that have already reported higher chargeoffs due to the change. KBW's Keefe, Bruyette & Woods had also identified TCF as being at risk for higher chargeoffs.

TCF's shares were trading at $10.55 Friday morning, down more than 4% from Thursday's closing.