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TCF Financial Q4 Results to Record $120-140M Tax Benefit

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TCF Financial Corporation is expected to record an after-tax benefit of nearly $120-$140 million for fourth-quarter 2017. The benefit follows the preliminary revaluation of the company’s deferred tax items, following President Trump’s recently implemented tax bill.

Notably, the actual net tax benefits might differ after complete evaluation of the company’s consolidated financial statements, tax returns of 2017 and final net deferred tax liabilities as of Dec 31, 2017.

Banks with higher deferred tax liabilities will benefit from the reduction in corporate tax rate (from 35% to 21%). Lower rate will reduce the value of  liabilities and boost the company’s earnings.

Further, following the Tax Cuts and Jobs Act enactment, TCF Financial aims to pay around $5 million as one-time bonuses to eligible team members, earning below $100,000 as full compensation during 2017.

Shares of TCF Financial rose around 27% over the last six months compared with 3.5% rally of its industry. The bank currently carries a Zacks Rank #2 (Buy).



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