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Section 1: 8-K (8-K)

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 


 

FORM 8-K

 


 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):  January 24, 2005

 


 

 

TCF FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

 


 

Delaware

 

001-10253

 

41-1591444

(State or other jurisdiction of
incorporation or organization)

 

(Commission File Number)

 

(IRS Employer Identification No.)

 

200 Lake Street East, Mail Code EX0-03-A, Wayzata, Minnesota 55391-1693

(Address of principal executive offices)

 

(612) 661-6500

(Registrant’s telephone number, including area code)

 


 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

[ ]             Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

[ ]             Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

[ ]             Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

[ ]             Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 



 

Item 2.02  Results of Operations and Financial Condition.

 

Information is being furnished herein in Exhibit 99.1 with respect to presentations to investors and others that may be made by executive officers of TCF Financial Corporation (the “Company”).  This information includes selected financial and operational information through the fourth quarter of 2004 and does not represent a complete set of financial statements and related footnotes prepared in conformity with generally accepted accounting principles (“GAAP”).  Most, but not all, of the selected financial information furnished herein is derived from the Company’s consolidated financial statements and related footnotes prepared in accordance with GAAP and management’s discussion and analysis included in the Company’s reports of Forms 10-K and 10-Q.  The Company’s annual financial statements are subject to independent audit.  Please refer to the glossary of financial terms at the end of these materials for a definition of the basis of presentation of such information. These materials replace and supercede investor presentation materials previously furnished as an exhibit to Current Reports on Form 8-K dated October 27, 2004.  These materials are dated January 24, 2005, and TCF does not undertake to update the materials after that date.

 

The presentation is also available on the Company’s web site at www.tcfexpress.com.  TCF Financial Corporation’s Annual Report to Shareholders and its reports on Forms 10-K, 10-Q and 8-K and other publicly available information should be consulted for other important information about the Company.

 

Information contained herein, including Exhibit 99.1, shall not be deemed filed for the purposes of the Securities Exchange Act of 1934, nor shall such information and Exhibit be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such a filing.

 

Item 7.01    Regulation FD Disclosure.

 

Information is being furnished herein in Exhibit 99.1 with respect to presentations to investors and others that may be made by executive officers of TCF Financial Corporation (the “Company”).  This information includes selected financial and operational information through the fourth quarter of 2004 and does not represent a complete set of financial statements and related footnotes prepared in conformity with generally accepted accounting principles (“GAAP”).  Most, but not all, of the selected financial information furnished herein is derived from the Company’s consolidated financial statements and related footnotes prepared in accordance with GAAP and management’s discussion and analysis included in the Company’s reports of Forms 10-K and 10-Q.  The Company’s annual financial statements are subject to independent audit.  Please refer to the glossary of financial terms at the end of these materials for a definition of the basis of presentation of such information. These materials replace and supercede investor presentation materials previously furnished as an exhibit to Current Reports on Form 8-K dated October 27, 2004.  These materials are dated January 24, 2005, and TCF does not undertake to update the materials after that date.

 

The presentation is also available on the Company’s web site at www.tcfexpress.com.  TCF Financial Corporation’s Annual Report to Shareholders and its reports on Forms 10-K, 10-Q and 8-K and other publicly available information should be consulted for other important information about the Company.

 

Information contained herein, including Exhibit 99.1, shall not be deemed filed for the purposes of the Securities Exchange Act of 1934, nor shall such information and Exhibit be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such a filing.

 

Item 9.01    Financial Statements and Exhibits.

 

(c)          Exhibits.

 

 

Exhibit No.

 

 

Description

 

 

 

 

 

 

99.1

 

Investor Presentation of TCF Financial Corporation,
Dated January 24, 2005

 

2



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

TCF FINANCIAL CORPORATION

 

 

 

 

 

/s/ William A. Cooper

 

William A. Cooper, Chairman of the Board,
Chief Executive Officer and Director

 

 

 

 

 

/s/ Neil W. Brown

 

Neil W. Brown, Executive Vice President,
Chief Financial Officer and Treasurer
(Principal Financial Officer)

 

 

 

 

 

/s/ David M. Stautz

 

David M. Stautz, Senior Vice President,
Controller and Assistant Treasurer
(Principal Accounting Officer)

 

 

Dated:  January 24, 2005

 

3


(Back To Top)

Section 2: EX-99.1 (EX-99.1)

Exhibit 99.1

 

TCF Financial Corporation

 

Investing in the Future

 

 

1.)                                  Corporate Profile

 

At December 31, 2004

 

                  $12.3 billion financial holding company headquartered in Minnesota is the 44th largest1 bank in the U.S. based on asset size and 33rd largest1 based on market cap

 

                  430 bank branches, 258 branches opened since January 1, 1998 - 27th largest2 branch network in the country.  Fourth largest2 bank branch growth (1999 to 2003)

 

                  1,141 TCF EXPRESS TELLER® ATMs, 645 off-site

 

                  One of the largest Visa® Classic debit card issuers

 

                  Annualized return to investor3: 1 year  28.45%, 3 years  13.17%, 5 years  24.13%, 10 years  23.02%

 

                  ROA 2.15%;  ROE 27.02%;  ROTE4  32.51%

 

                  1.5 million checking accounts

 

1 Source: Citigate Financial Intelligence;  9/30/2004

2 Source: American Banker;  1/15/2004

3 Source: RBC Capital Markets

4 Excludes the impact of intangible amortization expense (See reconciliation slide in the appendix).

 

2.)                                  Corporate Profile

 

At December 31, 2004

 

                  Bank branches located in six states: Minnesota, Illinois, Michigan, Wisconsin, Colorado and Indiana.

 

 

 

At 12/31/04

 

At 1/1/98

 

Traditional

 

182

 

156

 

Supermarket

 

248

 

61

 

Total

 

430

 

217

 

 

 

 

 

 

 

Minnesota

 

101

 

75

 

Illinois

 

197

 

47

 

Michigan

 

60

 

60

 

Wisconsin

 

34

 

28

 

Colorado

 

32

 

7

 

Indiana

 

6

 

 

Total

 

430

 

217

 

 

3.)                                  What Makes TCF Different

 

                  Convenience

TCF banks a large and diverse customer base by offering a host of convenient banking services [open seven days a week, 364 days/year, traditional and supermarket branches, TCF EXPRESS TELLER® ATMs, debit cards, phone banking, TCF Totally Free OnlineSM banking (802,000 Internet banking accounts), etc.]

 

                  De Novo Expansion

TCF is increasing its market share through de novo expansion:

                  Opening new branches

                  Starting new businesses

                  Offering new products and services

 

4.)                                  What Makes TCF Different

 

                  Power Assets® and Power Liabilities®

Power Assets® (consumer loans, commercial and commercial real estate loans, and leasing and equipment finance) and low-cost Power Liabilities® (checking, savings and money market accounts) are growing and contribute a significantly high percentage of TCF’s profits.

 

                  Credit Quality

TCF is primarily a secured lender, emphasizing credit quality over asset growth.

 

                  Stock Buy-Back

TCF has purchased 54.2 million shares since 1/1/98 at an average cost of $17.58 per share.

 



 

5.)                                  Share Repurchase Program

 

 

 

1998

 

1999

 

2000

 

2001

 

2002

 

2003

 

2004

 

 

 

(000s)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares Purchased

 

15,099

 

8,183

 

6,488

 

7,340

 

6,217

 

6,919

 

3,985

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding:

 

171,138

 

163,888

 

160,578

 

153,864

 

147,712

 

140,952

 

137,186

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average purchase price:

 

$

13.97

 

$

12.97

 

$

11.38

 

$

20.17

 

$

23.81

 

$

21.73

 

$

29.14

 

 

6.)                                  Share Repurchase Program

 

                  Repurchased 3,984,890 shares of common stock during 2004 at an average cost of $29.14 per share

 

                  Since 1/1/98,

                  TCF repurchased 54.2 million shares at an average cost of $17.58 per share

                  $953.4 million investment

                  $1.7 billion value at 12/31/04

 

                  At 12/31/04, 3.5 million shares remain available to purchase under board authorization

 

                  Returned 99% of net income to shareholders thru dividends and share buy backs over last 3 years

 

7.)                                  Consumer Home Equity Lending +22%*

 

 

Loan-to-value

 

12/00

 

12/01

 

12/02

 

12/03

 

12/04

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

80% or less

 

$

971.7

 

$

1,178.8

 

$

1,488.5

 

$

1,816.7

 

$

2,149.4

 

Over 80 to 90%

 

$

648.2

 

$

802.1

 

$

1,028.2

 

$

1,370.5

 

$

1,750.5

 

Over 90 to 100%

 

$

486.5

 

$

396.3

 

$

385.0

 

$

361.4

 

$

449.3

 

Over 100%

 

$

45.6

 

$

66.6

 

$

53.9

 

$

39.5

 

$

32.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

2,152

 

$

2,444

 

$

2,956

 

$

3,588

 

$

4,382

 

 

Portion of loans >90% of property value is $32.8 million

 

*                 Annual growth rate (‘04 vs. ‘03)

 

8.)                                  Consumer Home Equity Loans

 

At December 31, 2004

 

                  66% loans, 34% lines of credit

 

                  62% variable rate (prime based) and 38% fixed rate

 

                  66% are 1st mortgages, 34% are 2nd mortgages

 

                  Average home value of $196,049

 

                  Yield 6.38%

 

                  Over-30-day delinquency rate .35%

 

                  Net charge-offs: 2004 = .09%, 2003 = .11%

 

                  Average loan-to-value 75%

 

                  Average FICO score 716

 



 

9.)                                  Commercial Lending +10%*

 

 

 

12/00

 

12/01

 

12/02

 

12/03

 

12/04

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Real Estate

 

$

1,371.9

 

$

1,622.5

 

$

1,835.8

 

$

1,916.7

 

$

2,154.4

 

Commercial Business

 

$

410.4

 

$

422.4

 

$

440.1

 

$

427.7

 

$

424.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1,782

 

$

2,045

 

$

2,276

 

$

2,344

 

$

2,579

 

 

*                 Annual growth rate (‘04 vs. ‘03)

 

10.)                           Commercial Loans

 

At December 31, 2004

 

                  Commercial real estate

                  24% apartment loans

                  21% office building loans

                  6% hotel loans

 

                  Commercial business — $424 million

 

                  Yield 5.56%

 

                  Over-30-day delinquency rate .02%

 

                  Net charge-offs: 2004 = .03%, 2003 = .09%

 

                  Approximately 98% of all commercial loans secured

 

                  CRE location mix: 92% Midwest, 8% Other

 

11.)                           Leasing and Equipment Finance +19%*

 

 

 

12/00

 

12/01

 

12/02

 

12/03

 

12/04

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Leasing and Equipment Finance

 

$

856

 

$

957

 

$

1,039

 

$

1,160

 

$

1,375

 

 

*                 Annual growth rate (‘04 vs. ‘03)

 

12.)                           Leasing and Equipment Finance

 

At December 31, 2004

 

                  Equipment type

                  32% manufacturing and construction

                  17% specialty vehicle

                  17% technology and data processing

                  11% medical

                  23% other

 

                  Yield 6.89%

 

                  Uninstalled backlog of $195.3 million; up $40.1 million from year-end 2003

 

                  Over-30-day delinquency rate .67%

 

                  Net charge-offs: 2004 = .43%, 2003 = .69%

 

                  $18.8 million leveraged lease with Delta Airlines

 

                  Acquired VGM Leasing, Inc., specializing in home medical equipment financing in March 2004

 



 

13.)                           Allowance for Loan & Lease Losses

 

 

 

12/00

 

12/01

 

12/02

 

12/03

 

12/04

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan & Lease Losses

 

$

66.7

 

$

75.0

 

$

77.0

 

$

76.6

 

$

79.9

 

Net Charge-offs (NCO)

 

$

3.9

 

$

12.5

 

$

20.0

 

$

12.9

 

$

9.5

 

 

 

 

 

 

 

 

 

 

 

 

 

As a % of Loans & Leases:

 

 

 

 

 

 

 

 

 

 

 

Allowance

 

.78

%

.91

%

.95

%

.92

%

.85

%

NCO

 

.05

%

.15

%

.25

%

.16

%

.11

%

Coverage Ratio

 

17.3

X

6.0

X

3.8

X

5.9

X

8.4

X

 

 

 

 

 

 

 

 

 

 

 

 

 

14.)                           Delinquencies (Over 30-day)*

 

 

 

12/00

 

12/01

 

12/02

 

12/03

 

12/04

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Delinquencies

 

$

58.9

 

$

46.8

 

$

46.3

 

$

38.7

 

$

34.4

 

 

 

 

 

 

 

 

 

 

 

 

 

Delinquencies (percent)

 

.69

%

.57

%

.57

%

.47

%

.37

%

 

*                 Excludes non-accrual loans and leases

 

15.)                           Non-Performing Assets

 

 

 

12/00

 

12/01

 

12/02

 

12/03

 

12/04

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Accrual Loans and Leases

 

$

35.2

 

$

52.0

 

$

43.6

 

$

35.4

 

$

46.9

 

Real Estate Owned

 

$

10.9

 

$

14.6

 

$

26.6

 

$

33.5

 

$

17.2

 

Total

 

$

46.1

 

$

66.6

 

$

70.2

 

$

68.9

 

$

64.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Reserves/NAs:

 

189

%

144

%

176

%

216

%

170

%

NPAs/Assets:

 

.41

%

.59

%

.58

%

.61

%

.52

%

 

16.)                           Credit Quality

 

At December 31, 2004

 

                  YTD 9/04 net charge-offs .10%.  Average of the Top 50 banks in the U.S. was .71%.1

 

                  For the four years, 2000 - 2003, net charge-offs to average loans and leases were .15%; TCF ranked as the 4th best* bank in the U.S.

 

                  Non-performing assets to total assets .52%

 

                  Over-30-day delinquency rate .37%

 

                  Allowance as a multiple of annualized net charge-offs (coverage ratio), 8.4X

 

                  Income before income taxes and provision for loan losses as a multiple of net charge-offs, 41.7X

 

1         Source: Citigate Financial Intelligence (fifty largest banks)

 



 

17.)                           Checking Accounts +6%*

 

 

 

12/00

 

12/01

 

12/02

 

12/03

 

12/04

 

 

 

(000s)

 

 

 

 

 

 

 

 

 

 

 

 

 

Supermarket Branches

 

414

 

496

 

549

 

608

 

652

 

Traditional Branches

 

717

 

753

 

789

 

836

 

883

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

1,131

 

1,249

 

1,338

 

1,444

 

1,535

 

 

*      Annual growth rate (‘04 vs. ‘03)

 

18.)                           Banking Fees and Other Revenue1 +9%*

 

 

 

2000

 

2001

 

2002

 

2003

 

2004

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

56.9

 

$

65.6

 

$

71.8

 

$

81.6

 

$

86.6

 

Second Quarter

 

$

65.1

 

$

74.7

 

$

84.1

 

$

92.6

 

$

103.7

 

Third Quarter

 

$

67.5

 

$

75.1

 

$

87.4

 

$

93.8

 

$

102.2

 

Fourth Quarter

 

$

67.1

 

$

77.6

 

$

91.1

 

$

90.0

 

$

97.9

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

257

 

$

293

 

$

334

 

$

358

 

$

390

 

 

1         Consisting of fees and service charges, card revenue, ATM revenue, and investments and insurance commissions.

*      Annual growth rate (‘04 vs. ‘03)

 

19.)                           Retail Checking Deposits +20%*

 

 

 

12/00

 

12/01

 

12/02

 

12/03

 

12/04

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Supermarket Branches

 

$

475

 

$

591

 

$

695

 

$

829

 

$

1,000

 

Traditional Branches

 

$

1,535

 

$

1,715

 

$

1,903

 

$

2,146

 

$

2,565

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

2,010

 

$

2,306

 

$

2,598

 

$

2,975

 

$

3,565

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rate:

 

.20

%

.07

%

.04

%

.03

%

.22

%

 

*      Annual growth rate (‘04 vs. ‘03)

 

20.)                           Retail Savings and Money Market Deposits

 

 

 

12/00

 

12/01

 

12/02

 

12/03

 

12/04

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Money Market

 

$

794.2

 

$

879.9

 

$

791.3

 

$

745.8

 

$

590.6

 

Savings

 

$

964.3

 

$

1,113.4

 

$

1,794.6

 

$

1,771.1

 

$

1,812.9

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1,758

 

$

1,993

 

$

2,586

 

$

2,517

 

$

2,404

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rate:

 

2.29

%

.81

%

.78

%

.41

%

.61

%

 

21.)                           Card Revenue +19%*

 

 

 

2000

 

2001

 

2002

 

2003

 

2004

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

6.0

 

$

8.1

 

$

10.2

 

$

13.2

 

$

13.5

 

Second Quarter

 

$

7.1

 

$

9.3

 

$

11.8

 

$

14.8

 

$

16.0

 

Third Quarter

 

$

7.5

 

$

10.1

 

$

12.1

 

$

12.9

 

$

16.3

 

Fourth Quarter

 

$

8.2

 

$

10.1

 

$

13.1

 

$

12.1

 

$

17.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

28.8

 

$

37.6

 

$

47.2

 

$

53.0

 

$

63.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Volume:

 

$

2,025

 

$

2,560

 

$

3,216

 

$

3,899

 

$

4,735

 

 

 

 

 

 

 

 

 

 

 

 

 

Average off-line interchange rate:

 

1.53

%

1.55

%

1.55

%

1.43

%

1.40

%

 

*      Annual growth rate (‘04 vs. ‘03)

 



 

22.)                           Card Revenue

 

                  One of the  largest issuers of  Visa® Classic debit cards

 

                  11.7 million transactions per month in 4Q04

 

                  21% increase in sales volume¹

 

                  Revenue of $17.5 million in 4Q04, an increase of 45%1

 

                  Number of active accounts up 62,291, or 9%, from 4Q03

 

                  14.3 transactions per month on active cards, up 10%, from 4Q03

 

1         4Q04 vs. 4Q03

 

23.)                           Small Business Checking Deposits +18%*

 

 

 

12/00

 

12/01

 

12/02

 

12/03

 

12/04

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Small Business Checking Deposits

 

$

253

 

$

313

 

$

380

 

$

461

 

$

546

 

 

 

 

 

 

 

 

 

 

 

 

 

# of accounts

 

69,179

 

79,865

 

91,385

 

102,557

 

113,605

 

 

*      Annual growth rate (‘04 vs. ‘03)

 

24.)                           Small Business Checking Accounts

 

At December 31, 2004

 

                  Relationship banking offering multiple product lines to business owners

 

                  $546 million in 0% interest checking account deposits

 

                  Small business loans up to $50,000; small business administration loans up to $150,000; home equity loans up to $500,000

 

                  Other services — payroll services, merchant processing, brokerage accounts

 

                  53,787 TCF Business Check CardsSM

 

25.)                           Total New Branches1

 

 

 

Supermarket

 

Traditional

 

Total

 

Percent of Total

 

 

 

 

 

(#)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12/98

 

99

 

6

 

105

 

33.8

 

12/99

 

133

 

7

 

140

 

41.4

 

12/00

 

153

 

10

 

163

 

46.3

 

12/01

 

174

 

16

 

190

 

50.7

 

12/02

 

184

 

28

 

212

 

53.7

 

12/03

 

186

 

42

 

228

 

56.9

 

12/04

 

197

 

61

 

258

 

60.0

 

2005 Plan

 

202

 

85

 

287

 

62.5

 

 

1         Branches opened since January 1, 1998

 



 

26.)                           Retail Model - Net Income

 

 

 

Year of Existence

 

 

 

1

 

2

 

3

 

4

 

5

 

6

 

7

 

8

 

9

 

10

 

 

 

Net Income* ($ 000s)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supermarket Branch

 

$

(185

)

$

(41

)

$

24

 

$

91

 

$

89

 

$

139

 

$

188

 

$

215

 

$

252

 

$

282

 

Traditional Branch

 

$

(348

)

$

(154

)

$

(15

)

$

90

 

$

119

 

$

195

 

$

253

 

$

279

 

$

341

 

$

395

 

 

Capital Expenditure: $209,000 Supermarket branch, $3 million Traditional branch

 

*      Excludes consumer lending

 

27.)                           New Branch¹ Total Deposits +23%*

 

 

 

12/98

 

12/99

 

12/00

 

12/01

 

12/02

 

12/03

 

12/04

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

190

 

$

344

 

$

594

 

$

744

 

$

1,088

 

$

1,225

 

$

1,503

 

 

1         Branches opened since January 1, 1998

*      Annual growth rate (‘04 vs. ‘03)

 

28.)                           New Branch¹ Total Checking Accounts +16%*

 

 

 

12/98

 

12/99

 

12/00

 

12/01

 

12/02

 

12/03

 

12/04

 

 

 

(000s)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking Accounts

 

101

 

192

 

252

 

342

 

411

 

495

 

576

 

 

1         Branches opened since January 1, 1998

*      Annual growth rate (‘04 vs. ‘03)

 

29.)                           New Branch¹ Banking Fees & Other Revenue² +22%*

 

 

 

 

1998

 

1999

 

2000

 

2001

 

2002

 

2003

 

2004

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

.8

 

$

6.9

 

$

11.8

 

$

17.8

 

$

21.8

 

$

27.0

 

$

32.2

 

Second Quarter

 

$

3.2

 

$

9.5

 

$

15.2

 

$

21.8

 

$

27.6

 

$

32.8

 

$

41.4

 

Third Quarter

 

$

4.5

 

$

10.8

 

$

16.4

 

$

22.3

 

$

28.5

 

$

33.5

 

$

40.9

 

Fourth Quarter

 

$

5.8

 

$

11.9

 

$

17.4

 

$

23.5

 

$

29.8

 

$

32.8

 

$

39.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

14

 

$

39

 

$

61

 

$

85

 

$

108

 

$

126

 

$

154

 

 

1         Branches opened since January 1, 1998

2         Consisting of fees and service charges, card revenue, ATM revenue, and investments and insurance revenue.

*      Annual growth rate (‘04 vs. ‘03)

 



 

30.)                           Campus Banking

 

At December 31, 2004

 

                      Alliances with:

                     University of Minnesota

                     University of Michigan

                     St. Cloud State University in MN

                     Minnesota State University - Mankato

                     Northern Illinois University - Dekalb

                     Saginaw Valley State University in MI

                     Brown College in MN

 

                      Multi-purpose campus card serves as a school identification card, ATM card, library card, security card, health care card, phone card, stored value card for vending machines, laundry, etc.

 

                      86,842 total checking accounts

 

                      $120.3 million in deposits

 

31.)                           New Products and Services

 

                      TCF Premier Checking PlusSM

                     TCF Miles PlusSM Card

 

                      TCF Check CashingSM

 

                      TCF Express CoinSM Service coin counters

 

                      TCF Command ProtectionSM Plan

                     Monthly payments

                     Another source of fee revenue

 

                      Medical equipment leasing

 

32.)                           Financial Highlights

How We Are Doing…

 

33.)                           Diluted EPS

 

 

 

1995

 

1996

 

1997

 

1998

 

1999

 

2000

 

2001

 

2002

 

2003

 

2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

.43

 

$

.60

 

$

.84

 

$

.88

 

$

1.00

 

$

1.17

 

$

1.35

 

$

1.58

 

$

1.53

 

$

1.86

 

 

34.)                           Dividend History +15%*

 

 

 

1995

 

1996

 

1997

 

1998

 

1999

 

2000

 

2001

 

2002

 

2003

 

2004

 

2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends Paid

 

$

.15

 

$

.18

 

$

.23

 

$

.31

 

$

.36

 

$

.41

 

$

.50

 

$

.58

 

$

.65

 

$

.75

 

$

.85

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend payout ratio:

 

35

%

30

%

28

%

35

%

36

%

35

%

37

%

37

%

43

%

40

%

N/A

 

 

10-year compounded annual growth rate 20%

Ranks 5th of the Top 50 Banks1

 

*      Annual growth rate (‘04 vs. ‘03)

1         Source:  Citigate Financial Intelligence

2         Annualized, subject to Board of Directors approval

 



 

35.)                           Net Income

 

 

 

2000

 

2001

 

2002

 

2003

 

2004

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

40.7

 

$

48.2

 

$

56.3

 

$

60.1

 

$

60.7

 

Second Quarter

 

$

46.7

 

$

52.0

 

$

58.0

 

$

60.3

 

$

65.2

 

Third Quarter

 

$

46.7

 

$

52.9

 

$

58.9

 

$

36.0

 

$

61.7

 

Fourth Quarter

 

$

52.2

 

$

54.2

 

$

59.8

 

$

59.5

 

$

67.4

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

186

 

$

207

 

$

233

 

$

216

 

$

255

 

 

36.)                           Net Interest Income

 

 

 

2000

 

2001

 

2002

 

2003

 

2004

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

106.8

 

$

113.8

 

$

124.5

 

$

122.4

 

$

118.4

 

Second Quarter

 

$

110.2

 

$

119.3

 

$

124.3

 

$

119.8

 

$

122.4

 

Third Quarter

 

$

110.7

 

$

122.4

 

$

123.8

 

$

119.9

 

$

124.5

 

Fourth Quarter

 

$

110.8

 

$

125.7

 

$

126.6

 

$

119.1

 

$

126.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

439

 

$

481

 

$

499

 

$

481

 

$

492

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Margin:

 

4.35

%

4.51

%

4.71

%

4.54

%

4.54

%

 

37.)                           Financial Highlights

 

($ millions, except per-share data)

 

 

 

2004

 

2003

 

Change

 

Net interest income

 

$

491.9

 

$

481.1

 

2

%

Fees & other revenue:

 

 

 

 

 

 

 

Banking

 

390.5

 

358.0

 

9

 

Other

 

77.4

 

72.8

 

6

 

Total fees and other revenue

 

467.9

 

430.8

 

9

 

Gains on sales of securities available for sale

 

22.6

 

32.8

 

(31

)

Gains (losses) on termination of debt

 

 

(44.3

)

100

 

Total non-interest income

 

490.5

 

419.3

 

17

 

Total revenue

 

982.4

 

900.4

 

9

 

Provision for credit losses

 

10.9

 

12.5

 

(13

)

Non-interest expense

 

586.9

 

560.1

 

5

 

Net income

 

$

255.0

 

$

215.9

 

18

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

1.86

 

$

1.53

 

22

 

ROA

 

2.15

%

1.85

%

30

bps

ROE

 

27.02

%

23.05

%

397

bps

 

 



 

38.)                           Power ProfitsSM

 

Average Balance ($ millions)

Profit center net income ($ 000s)

 

 

 

 

 

YTD 2004

 

 

 

 

 

Balance

 

Income

 

%

 

Commercial Lending

 

$

2,441

 

$

29,592

 

11

%

Consumer Lending

 

4,262

 

62,608

 

25

 

Leasing and Equipment Finance

 

1,286

 

35,872

 

14

 

Total Power Assets®

 

$

7,989

 

128,072

 

50

 

 

 

 

 

 

 

 

 

Traditional Branches (182)

 

$

6,152

 

73,135

 

29

 

Supermarket Branches (248)

 

1,624

 

33,601

 

13

 

Total Power Liabilities®

 

$

7,776

 

106,736

 

42

 

Total Power Assets & Liabilities

 

 

 

234,808

 

92

 

Equity

 

 

 

22,221

 

9

 

Total Power Businesses

 

 

 

257,029

 

101

 

Treasury Services and Other

 

 

 

(2,036

)

(1

)

Net Income

 

 

 

$

254,993

 

100

%

 

39.)                           Interest Rate Risk Management

 

Cumulative One Year Positive Gap

 

 

 

12/00

 

12/01

 

12/02

 

12/03

 

12/04

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Gap

 

$

(215

)

$

242

 

$

1,110

 

$

161

 

$

585

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Gap as a % of Total Assets

 

(1.9

)%

2.1

%

9.1

%

1.4

%

4.7

%

 

40.)                           Securities Available for Sale and Residential Portfolios

 

Ending Balance

 

12/00

 

12/01

 

12/02

 

12/03

 

12/04

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities available for sale portfolio*

 

$

1,419

 

$

1,575

 

$

2,355

 

$

1,524

 

$

1,622

 

Residential portfolio

 

3,674

 

2,733

 

1,800

 

1,213

 

1,014

 

Total

 

$

5,093

 

$

4,308

 

$

4,155

 

$

2,737

 

$

2,636

 

 

 

 

 

 

 

 

 

 

 

 

 

Rate:

 

7.05

%

6.76

%

6.25

%

5.55

%

5.29

%

 

*                 Based on historical amortized cost

 



 

41.)                           TCF vs. Top 50 Banks* - Return on Assets

 

Quarter Ended September 30, 2004

 

U S BANCORP

 

USB

 

2.21

%

MELLON FINANCIAL CORP

 

MEL

 

2.16

%

TCF FINANCIAL CORP

 

TCB

 

2.06

%

FIFTH THIRD BANCORP

 

FITB

 

1.95

%

BB&T CORP

 

BBT

 

1.85

%

SYNOVUS FINANCIAL CP

 

SNV

 

1.82

%

NATIONAL CITY CORP

 

NCC

 

1.76

%

NORTH FORK BANCORPORATION

 

NFB

 

1.75

%

WELLS FARGO & CO

 

WFC

 

1.66

%

MARSHALL & ILSLEY CORP

 

MI

 

1.63

%

FIRST HORIZON NATL CORP

 

FHN

 

1.63

%

MERCANTILE BANKSHARES CORP

 

MRBK

 

1.62

%

ASSOCIATED BANC CORP

 

ASBC

 

1.60

%

CITY NATIONAL CORP

 

CYN

 

1.56

%

COMERICA INC.

 

CMA

 

1.55

%

CITIGROUP INC

 

C

 

1.52

%

COMMERCE BANCSHARES INC

 

CBSH

 

1.51

%

VALLEY NATL BANC

 

VLY

 

1.51

%

CULLEN/FROST

 

CFR

 

1.50

%

FULTON FINANCIAL

 

FULT

 

1.48

%

UNIONBANCAL CORP

 

UB

 

1.47

%

BANK OF NEW YORK CO INC

 

BK

 

1.45

%

HIBERNIA CORP - CLA

 

HIB

 

1.44

%

M & T BANK CORP

 

MTB

 

1.42

%

SOUTHTRUST CORP

 

SOTR

 

1.40

%

AMSOUTH BANCORPORATION

 

ASO

 

1.40

%

PNC FINANCIAL SVCS GROUP INC

 

PNC

 

1.36

%

BANK OF AMERICA CORP

 

BAC

 

1.35

%

BOK FINANCIAL CORP

 

BOKF

 

1.35

%

COMPASS BANCSHARES INC

 

CBSS

 

1.34

%

BANKNORTH GROUP INC

 

BNK

 

1.33

%

ZIONS BANCORPORATION

 

ZION

 

1.30

%

REGIONS FINL CORP

 

RF

 

1.28

%

SKY FINANCIAL GR

 

SKYF

 

1.26

%

FIRSTMERIT CORP

 

FMER

 

1.21

%

INVESTORS FINL

 

IFIN

 

1.20

%

WACHOVIA CORP

 

WB

 

1.18

%

HUNTINGTON BANCSHARES

 

HBAN

 

1.18

%

KEYCORP

 

KEY

 

1.16

%

SUNTRUST BANKS INC

 

STI

 

1.15

%

POPULAR INC

 

BPOP

 

1.13

%

NORTHERN TRUST CORP

 

NTRS

 

1.13

%

WEBSTER FINANCIAL CORP

 

WBS

 

1.13

%

SOUTH FINANCIAL

 

TSFG

 

1.06

%

BANCORPSOUTH INC

 

BXS

 

1.04

%

COMMERCE BANCORP INC/NJ

 

CBH

 

1.02

%

COLONIAL BANCGROUP

 

CNB

 

1.02

%

STATE STREET CORP

 

STT

 

.73

%

J P MORGAN CHASE & CO

 

JPM

 

.58

%

FIRST CITIZENS

 

FCNCA

 

.52

%

 

 

 

 

 

 

AVERAGE

 

 

 

1.40

%

 

*                 Represents the fifty largest bank holding companies in the U.S. based on asset size at 9/30/04

Source: Citigate Financial Intelligence

 



 

42.)                           TCF vs. Top 50 Banks* - Return on Equity

 

Quarter Ended September 30, 2004

 

BB&T CORP

 

BBT

 

28.50

%

TCF FINANCIAL CORP

 

TCB

 

25.96

%

FIRST HORIZON NATL CORP

 

FHN

 

23.70

%

VALLEY NATL BANC

 

VLY

 

23.65

%

U S BANCORP

 

USB

 

21.90

%

CITIGROUP INC

 

C

 

21.23

%

FIFTH THIRD BANCORP

 

FITB

 

21.10

%

NORTH FORK BANCORPORATION

 

NFB

 

19.66

%

WELLS FARGO & CO

 

WFC

 

19.34

%

COMPASS BANCSHARES INC

 

CBSS

 

19.06

%

NATIONAL CITY CORP

 

NCC

 

19.01

%

COMMERCE BANCORP INC/NJ

 

CBH

 

18.97

%

MELLON FINANCIAL CORP

 

MEL

 

18.90

%

CULLEN/FROST

 

CFR

 

18.45

%

ASSOCIATED BANC CORP

 

ASBC

 

17.76

%

MARSHALL & ILSLEY CORP

 

MI

 

17.58

%

SYNOVUS FINANCIAL CP

 

SNV

 

17.00

%

CITY NATIONAL CORP

 

CYN

 

16.80

%

SOUTHTRUST CORP

 

SOTR

 

16.42

%

HIBERNIA CORP - CLA

 

HIB

 

16.40

%

POPULAR INC

 

BPOP

 

16.22

%

UNIONBANCAL CORP

 

UB

 

16.04

%

BANK OF NEW YORK CO INC

 

BK

 

15.90

%

COMERICA INC.

 

CMA

 

15.68

%

BANK OF AMERICA CORP

 

BAC

 

15.56

%

WACHOVIA CORP

 

WB

 

15.52

%

HUNTINGTON BANCSHARES

 

HBAN

 

15.40

%

ZIONS BANCORPORATION

 

ZION

 

15.23

%

COMMERCE BANCSHARES INC

 

CBSH

 

14.91

%

SUNTRUST BANKS INC

 

STI

 

14.68

%

BOK FINANCIAL CORP

 

BOKF

 

14.67

%

KEYCORP

 

KEY

 

14.62

%

PNC FINANCIAL SVCS GROUP INC

 

PNC

 

14.42

%

NORTHERN TRUST CORP

 

NTRS

 

14.40

%

AMSOUTH BANCORPORATION

 

ASO

 

14.20

%

FULTON FINANCIAL

 

FULT

 

14.12

%

COLONIAL BANCGROUP

 

CNB

 

13.74

%

WEBSTER FINANCIAL CORP

 

WBS

 

13.25

%

BANKNORTH GROUP INC

 

BNK

 

13.24

%

SKY FINANCIAL GR

 

SKYF

 

13.21

%

M & T BANK CORP

 

MTB

 

13.02

%

FIRSTMERIT CORP

 

FMER

 

12.78

%

BANCORPSOUTH INC

 

BXS

 

12.77

%

MERCANTILE BANKSHARES CORP

 

MRBK

 

12.13

%

REGIONS FINL CORP

 

RF

 

12.08

%

STATE STREET CORP

 

STT

 

11.70

%

SOUTH FINANCIAL

 

TSFG

 

11.26

%

INVESTORS FINL

 

IFIN

 

8.80

%

J P MORGAN CHASE & CO

 

JPM

 

7.50

%

FIRST CITIZENS

 

FCNCA

 

6.38

%

 

 

 

 

 

 

AVERAGE

 

 

 

16.10

%

 

*                 Represents the fifty largest bank holding companies in the U.S. based on asset size at 9/30/04

Source: Citigate Financial Intelligence

 



 

43.)                           TCF vs. Top 50 Banks* - Net Charge-Offs

 

Nine Months Ended September 30, 2004

 

MERCANTILE BANKSHARES CORP

 

MRBK

 

.02

%

NORTHERN TRUST CORP

 

NTRS

 

.02

%

BANK OF HAWAII

 

BOH

 

.02

%

FULTON FINANCIAL

 

FULT

 

.05

%

INTL BANCSHARES

 

IBOC

 

.06

%

MARSHALL & ILSLEY CORP

 

MI

 

.08

%

VALLEY NATL BANC

 

VLY

 

.08

%

CITY NATL CORP

 

CYN

 

.09

%

TCF FINANCIAL CORP

 

TCB

 

.10

%

WEBSTER FINANCIAL CORP

 

WBS

 

.10

%

NORTH FORK BANCORPORATION

 

NFB

 

.13

%

WACHOVIA CORP

 

WB

 

.15

%

UNIONBANCAL CORP

 

UB

 

.15

%

ASSOCIATED BANC CORP

 

ASBC

 

.17

%

ZIONS BANCORPORATION

 

ZION

 

.18

%

COMMERCE BANCORP INC/NJ

 

CBH

 

.19

%

M & T BANK CORP

 

MTB

 

.20

%

BANKNORTH GROUP INC

 

BNK

 

.20

%

WILMINGTON TRUST

 

WL

 

.21

%

SYNOVUS FINANCIAL CP

 

SNV

 

.22

%

COLONIAL BANCGROUP

 

CNB

 

.22

%

SUNTRUST BANKS INC

 

STI

 

.24

%

CULLEN/FROST

 

CFR

 

.25

%

REGIONS FINL CORP

 

RF

 

.25

%

BANK OF NEW YORK CO INC

 

BK

 

.26

%

FIRST CITIZENS

 

FCNCA

 

.26

%

BOK FINANCIAL CORP

 

BOKF

 

.27

%

FIRST TENNESSEE NATL CORP

 

FHN

 

.28

%

SOUTHTRUST CORP

 

SOTR

 

.29

%

BANCORPSOUTH INC

 

BXS

 

.30

%