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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):  April 22, 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 first quarter of 2005 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 January 24, 2005.  These materials are dated April 22, 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 first quarter of 2005 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 January 24, 2005.  These materials are dated April 22, 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 April 22, 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
and Chief Financial Officer
(Principal Financial Officer)

 

 

 

 

 

 

 

 

/s/ David M. Stautz

 

 

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

 

 

Dated:    April 22, 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 March 31, 2005

 

                                          $12.7 billion financial holding company headquartered in Minnesota - 47th largest1 bank in the U.S. based on asset size and 36th 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)

 

                                          1,153 TCF EXPRESS TELLER® ATMs, 630 off-site

 

                                          One of the largest Visa® Classic debit card issuers

 

                                          ROA 2.03%;  ROE 27.18%;  ROTE 3  32.79%

 

                                          1.6 million checking accounts

 

1  Source: Citigate Financial Intelligence;  12/31/2004

2  Source: American Banker;  1/15/2004

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

 

2.)                                  Corporate Profile

 

At March 31, 2005

 

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

 

 

 

At 3/31/05

 

At 1/1/98

 

Traditional

 

175

 

149

 

Supermarket

 

248

 

61

 

Campus

 

7

 

7

 

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 (808,000 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 home equity and other loans, commercial real estate loans, commercial business 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 56 million shares since 1/1/98 at an average cost of $17.92 per share.

 



 

5.)                                  Return of Net Income to Shareholders

 

 

 

Stock
Repurchase

 

Dividends
Paid

 

Total

 

Net
Income

 

% of Net
Income

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

2001

 

$

148.0

 

$

77.5

 

$

225.5

 

$

207.3

 

109

%

2002

 

148.0

 

86.5

 

234.5

 

232.9

 

101

 

2003

 

150.4

 

93.0

 

243.4

 

215.9

 

113

 

2004

 

116.1

 

104.0

 

220.1

 

255.0

 

86

 

2005*

 

50.6

 

29.0

 

79.6

 

63.5

 

125

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

613.1

 

$

390.0

 

$

1,003.1

 

$

974.6

 

103

%

 

*                 Year-to-date

 

6.)                                  Share Repurchase Program

 

                                          Repurchased 1,800,000 shares of common stock during the 2005 first quarter at an average cost of $28.10 per share

 

                                          Since 1/1/98:

                                          TCF repurchased 56 million shares at an average cost of $17.92 per share

                                          $1 billion investment

                                          $1.5 billion value at 3/31/05

 

                                          At 3/31/05, 1.7 million shares remain available to purchase under board authorization

 

                                          Returned 103% of net income to shareholders thru dividends and share buy backs over last five years

 

7.)                                  Consumer Home Equity Lending +21%*

 

Loan-to-value

 

12/01

 

12/02

 

12/03

 

12/04

 

3/05

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

80% or less

 

$

1,178.8

 

$

1,488.5

 

$

1,816.7

 

$

2,149.4

 

$

2,284.1

 

Over 80 to 90%

 

$

802.1

 

$

1,028.2

 

$

1,370.5

 

$

1,750.5

 

$

1,773.2

 

Over 90 to 100%

 

$

396.3

 

$

385.0

 

$

361.4

 

$

449.3

 

$

477.0

 

Over 100%

 

$

66.6

 

$

53.9

 

$

39.5

 

$

32.8

 

$

29.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

2,444

 

$

2,956

 

$

3,588

 

$

4,382

 

$

4,564

 

 

Portion of loans >90% of property value is $29.8 million

 

*                 Twelve-month growth rate

 

8.)                                  Consumer Home Equity Loans

 

At March 31, 2005

 

                                          67% loans, 33% lines of credit

 

                                          58% variable rate (prime based) and 42% fixed rate

 

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

 

                                          Average home value of $196,806

 

                                          Yield 6.58%

 

                                          Over-30-day delinquency rate .32%

 

                                          Net charge-offs: 2005 = .13%*, 2004 = .09%, 2003 = .11%

 

                                          Average loan-to-value 75%

 

                                          Average FICO score 717

 

*                 Annualized

 



 

9.)                                  Commercial Lending +9%*

 

 

 

12/01

 

12/02

 

12/03

 

12/04

 

3/05

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Real Estate

 

$

1,622.5

 

$

1,835.8

 

$

1,916.7

 

$

2,154.4

 

$

2,193.5

 

Commercial Business

 

$

422.4

 

$

440.1

 

$

427.7

 

$

424.1

 

$

409.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

2,045

 

$

2,276

 

$

2,344

 

$

2,579

 

$

2,603

 

 

*                 Twelve-month growth rate

 

10.)                           Commercial Loans

 

At March 31, 2005

 

                                          Commercial real estate

                                          24% apartment loans

                                          21% office building loans

                                          5% hotel loans

 

                                          Commercial business — $409 million

 

                                          Yield 5.76%

 

                                          Over-30-day delinquency rate .05%

 

                                          Net (recoveries) charge-offs: 2005 = (.38)%*, 2004 = .03% , 2003 = .09%

 

                                          Approximately 99% of all commercial loans secured

 

                                          CRE location mix: 93% Midwest, 7% Other

 

*                 Annualized

 

11.)                           Leasing and Equipment Finance +11%*

 

 

 

12/01

 

12/02

 

12/03

 

12/04

 

3/05

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Leasing and Equipment Finance

 

$

957

 

$

1,039

 

$

1,160

 

$

1,375

 

$

1,398

 

 

*                 Twelve-month growth rate

 

12.)                           Leasing and Equipment Finance

 

At March 31, 2005

 

                                          Equipment type

                                          32% manufacturing and construction

                                          17% specialty vehicle

                                          16% technology and data processing

                                          12% medical

                                          23% other

 

                                          Yield 6.86%

 

                                          Uninstalled backlog of $210.7 million; up $15.4 million from year-end 2004

 

                                          Over-30-day delinquency rate .51%

 

                                          Net charge-offs: 2005 = .18%*, 2004 = .43%, 2003 = .69%

 

                                          $18.8 million leveraged lease with Delta Airlines

 

                                          April 2005 - TCF Leasing, Inc. changed its name to TCF Equipment Finance

 

*                 Annualized

 



 

13.)                           Allowance for Loan & Lease Losses

 

 

 

12/01

 

12/02

 

12/03

 

12/04

 

3/05

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan & Lease Losses

 

$

 75.0

 

$

 77.0

 

$

 76.6

 

$

79.9

 

$

76.9

 

Net Charge-offs (NCO)

 

$

 12.5

 

$

 20.0

 

$

 12.9

 

$

9.5

 

$

(.4

)

 

 

 

 

 

 

 

 

 

 

 

 

As a % of Loans & Leases:

 

 

 

 

 

 

 

 

 

 

 

Allowance

 

.91

%

.95

%

.92

%

.85

%

.80

%

NCO

 

.15

%

.25

%

.16

%

.11

%

(.02

)%

Coverage Ratio

 

6.0

X

3.8

X

5.9

X

8.4

X

N.M.

 

 

1                    Annualized

N.M.  Not meaningful

 

14.)                           Delinquencies (Over 30-day)1

 

 

 

12/01

 

12/02

 

12/03

 

12/04

 

3/05

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Delinquencies

 

$

46.8

 

$

46.3

 

$

38.7

 

$

34.4

 

$

32.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Delinquencies (percent)

 

.57

%

.57

%

.47

%

.37

%

.34

%

 

1                    Excludes non-accrual loans and leases

 

15.)                           Non-Performing Assets

 

 

 

12/01

 

12/02

 

12/03

 

12/04

 

3/05

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Accrual Loans and Leases

 

$

52.0

 

$

43.6

 

$

35.4

 

$

46.9

 

$

44.9

 

Real Estate Owned

 

$

14.6

 

$

26.6

 

$

33.5

 

$

17.2

 

$

18.5

 

Total

 

$

66.6

 

$

70.2

 

$

68.9

 

$

64.1

 

$

63.4

 

 

 

 

 

 

 

 

 

 

 

 

 

Reserves/NAs:

 

144

%

176

%

216

%

170

%

171

%

NPAs/Assets:

 

.59

%

.58

%

.61

%

.52

%

.50

%

 

16.)                           Credit Quality

 

At March 31, 2005

 

                                          2004 net charge-offs .11%.  Average of the Top 50 banks in the U.S. was .73%.1

 

                                          For the five years, 2000 - 2004, net charge-offs to average loans and leases were .14%; TCF ranked as the 3rd best1 bank in the U.S.

 

                                          Non-performing assets to total assets .50%

 

                                          Over-30-day delinquency rate .34%

 

1                    Source: Citigate Financial Intelligence (fifty largest banks)

 

17.)                           Checking Accounts +6%*

 

 

 

12/01

 

12/02

 

12/03

 

12/04

 

3/05

 

 

 

(000s)

 

 

 

 

 

 

 

 

 

 

 

 

 

Supermarket Branches

 

496

 

549

 

608

 

652

 

665

 

Traditional Branches

 

753

 

789

 

836

 

883

 

894

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

1,249

 

1,338

 

1,444

 

1,535

 

1,559

 

 

*                 Twelve-month growth rate

 



 

18.)                           Banking Fees and Other Revenue1 +1%*

 

 

 

2001

 

2002

 

2003

 

2004

 

2005

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

65.6

 

$

71.8

 

$

81.6

 

$

86.6

 

$

87.3

 

Second Quarter

 

$

74.7

 

$

84.1

 

$

92.6

 

$

103.7

 

$

-

 

Third Quarter

 

$

75.1

 

$

87.4

 

$

93.8

 

$

102.2

 

$

-

 

Fourth Quarter

 

$

77.6

 

$

91.1

 

$

90.0

 

$

97.9

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

293

 

$

334

 

$

358

 

$

390

 

$

87

 

 

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

*                 Year-to-date (‘05 vs. ‘04)

 

19.)                           Retail Checking Deposits +15%*

 

 

 

12/01

 

12/02

 

12/03

 

12/04

 

3/05

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Supermarket Branches

 

$

591

 

$

695

 

$

829

 

$

1,000

 

$

1,054

 

Traditional Branches

 

$

1,715

 

$

1,903

 

$

2,146

 

$

2,565

 

$

2,628

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

2,306

 

$

2,598

 

$

2,975

 

$

3,565

 

$

3,682

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rate:

 

.07

%

.04

%

.03

%

.22

%

.28

%

 

*                 Twelve-month growth rate

 

20.)                           Retail Savings and Money Market Deposits

 

 

 

12/01

 

12/02

 

12/03

 

12/04

 

3/05

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Money Market

 

$

879.9

 

$

791.3

 

$

745.8

 

$

590.6

 

$

555.8

 

Savings

 

$

1,113.4

 

$

1,794.6

 

$

1,771.1

 

$

1,812.9

 

$

1,934.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1,993

 

$

2,586

 

$

2,517

 

$

2,404

 

$

2,491

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rate:

 

.81

%

.78

%

.41

%

.61

%

.81

%

 

21.)                           Card Revenue +31%*

 

 

 

2001

 

2002

 

2003

 

2004

 

2005

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

8.1

 

$

10.2

 

$

13.2

 

$

13.5

 

$

17.6

 

Second Quarter

 

$

9.3

 

$

11.8

 

$

14.8

 

$

16.0

 

$

-

 

Third Quarter

 

$

10.1

 

$

12.1

 

$

12.9

 

$

16.3

 

$

-

 

Fourth Quarter

 

$

10.1

 

$

13.1

 

$

12.1

 

$

17.7

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

37.6

 

$

47.2

 

$

53.0

 

$

63.5

 

$

17.6

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Volume:

 

$

2,560

 

$

3,216

 

$

3,899

 

$

4,735

 

$

1,284

1

 

 

 

 

 

 

 

 

 

 

 

 

Average off-line interchange rate:

 

1.55

%

1.55

%

1.43

%

1.40

%

1.39

%1

 

1                    Year-to-date

*                 Year-to-date (‘05 vs.’04)

 

22.)                           Card Revenue

 

                                          One of the largest issuers of Visa® Classic debit cards

 

                                          11.6 million transactions per month in 1Q05

 

                                          19% increase in sales volume1

 

                                          Revenue of $17.6 million in 1Q05, an increase of 31%1

 

                                          Number of active accounts up 57,956, or 9%1

 

                                          14.1 transactions per month on active cards, up 12%1

 

1                    1Q05 vs. 1Q04

 



 

23.)                           Small Business Checking Deposits +16%*

 

 

 

12/01

 

12/02

 

12/03

 

12/04

 

3/05

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Small Business Checking Deposits

 

$

313

 

$

380

 

$

461

 

$

546

 

$

558

 

 

 

 

 

 

 

 

 

 

 

 

 

# of accounts

 

79,865

 

91,385

 

102,557

 

113,605

 

116,205

 

 

*                 Twelve-month growth rate

 

24.)                           Small Business Checking Accounts

 

At March 31, 2005

 

                                          Relationship banking offering multiple product lines to business owners

 

                                          $558 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

 

                                          68,339 TCF Business Check CardsSM

 

                                          Introduced TCF Miles Plus Business CardSM to business banking customers

 

25.)                           Total New Branches1

 

 

 

Supermarket

 

Traditional
and Campus

 

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

 

 3/05

 

197

 

61

 

258

 

60.0

 

2005 Forecast

 

204

 

83

 

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 +28%*

 

 

 

12/98

 

12/99

 

12/00

 

12/01

 

12/02

 

12/03

 

12/04

 

3/05

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

190

 

$

344

 

$

594

 

$

744

 

$

1,088

 

$

1,225

 

$

1,503

 

$

1,734

 

 

1                    Branches opened since January 1, 1998

*                 Twelve-month growth rate

 



 

28.)                           New Branch1 Total Checking Accounts +15%*

 

 

 

12/98

 

12/99

 

12/00

 

12/01

 

12/02

 

12/03

 

12/04

 

3/05

 

 

 

(000s)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking Accounts

 

101

 

192

 

252

 

342

 

411

 

495

 

576

 

598

 

 

1                    Branches opened since January 1, 1998

*                 Twelve -month growth rate

 

29.)                           New Branch1 Banking Fees & Other Revenue2 +12%*

 

 

 

1998

 

1999

 

2000

 

2001

 

2002

 

2003

 

2004

 

3/05

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

.8

 

$

6.9

 

$

11.8

 

$

17.8

 

$

21.8

 

$

27.0

 

$

32.2

 

$

36.0

 

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

 

$

36

 

 

1                    Branches opened since January 1, 1998

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

*                 Twelve-month growth rate

 

30.)                           Campus Banking

 

At March 31, 2005

 

                                          Alliances with the University of Minnesota and University of Michigan plus six other colleges, including the latest agreement with DePaul University in Chicago.

 

                                          March 2005, signed a $35 million naming rights agreement with the University of Minnesota to help build an on-campus football stadium, to be named “TCF Bank Stadium”

 

                                          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.

 

                                          79,714 total checking accounts

 

                                          $120.6 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

 

 

 

1996

 

1997

 

1998

 

1999

 

2000

 

2001

 

2002

 

2003

 

2004

 

2005*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

.60

 

$

.84

 

$

.88

 

$

1.00

 

$

1.17

 

$

1.35

 

$

1.58

 

$

1.53

 

$

1.86

 

$

.47

 

 

*                 Year-to-date

 

34.)                           Dividend History +7%*

 

 

 

1996

 

1997

 

1998

 

1999

 

2000

 

2001

 

2002

 

2003

 

2004

 

2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends Paid

 

$

.18

 

$

.23

 

$

.31

 

$

.36

 

$

.41

 

$

.50

 

$

.58

 

$

.65

 

$

.75

 

$

.85

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend payout ratio:

 

30

%

28

%

35

%

36

%

35

%

37

%

37

%

43

%

40

%

44

%3

 

10-year compounded annual growth rate 20%

Ranks 5th of the Top 50 Banks1

 

*                 Annual growth rate (‘05 vs. ‘04)

1                    Source:  Citigate Financial Intelligence

2                    Annualized, subject to Board of Directors approval

3                    Based on analysts’ average diluted EPS estimate of $1.94

 

35.)                           Net Income

 

 

 

2001

 

2002

 

2003

 

2004

 

2005

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

48.2

 

$

56.3

 

$

60.1

 

$

60.7

 

$

63.5

 

Second Quarter

 

$

52.0

 

$

58.0

 

$

60.3

 

$

65.2

 

$

-

 

Third Quarter

 

$

52.9

 

$

58.9

 

$

36.0

 

$

61.7

 

$

-

 

Fourth Quarter

 

$

54.2

 

$

59.8

 

$

59.5

 

$

67.4

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

207

 

$

233

 

$

216

 

$

255

 

$

63

 

 

36.)                           Net Interest Income +9%*

 

 

 

2001

 

2002

 

2003

 

2004

 

2005

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

113.8

 

$

124.5

 

$

122.4

 

$

118.4

 

$

129.1

 

Second Quarter

 

$

119.3

 

$

124.3

 

$

119.8

 

$

122.4

 

$

-

 

Third Quarter

 

$

122.4

 

$

123.8

 

$

119.9

 

$

124.5

 

$

-

 

Fourth Quarter

 

$

125.7

 

$

126.6

 

$

119.1

 

$

126.5

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

481

 

$

499

 

$

481

 

$

492

 

$

129

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Margin:

 

4.51

%

4.71

%

4.54

%

4.54

%

4.56

%1

 

1                    Year-to-date

*                 Annual growth rate (‘05 vs. ‘04)

 

37.)                           Financial Highlights

 

($ millions, except per-share data)

 

Year-to-Date

 

 

 

 

 

2005

 

2004

 

Change

 

Net interest income

 

$

129.1

 

$

118.5

 

9

%

Fees & other revenue:

 

 

 

 

 

 

 

Banking

 

87.3

 

86.6

 

1

 

Other

 

19.7

 

15.9

 

24

 

Total fees and other revenue

 

107.0

 

102.5

 

4

 

Gains on sales of securities available for sale

 

5.2

 

12.7

 

(59

)

Total non-interest income

 

112.2

 

115.2

 

(3

)

Total revenue

 

241.3

 

233.7

 

3

 

Provision for credit losses

 

(3.4

)

1.2

 

N.M.

 

Non-interest expense

 

148.1

 

140.7

 

5

 

Net income

 

$

63.5

 

$

60.7

 

5

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

.47

 

$

.44

 

7

 

ROA

 

2.03

%

2.11

%

(8

)bps

ROE

 

27.18

%

25.90

%

128

 bps

 

N.M.  Not meaningful

 



 

38.)                           Power ProfitsSM

 

Average Balance ($ millions)

 

 

 

 

 

 

 

Profit center net income ($ 000s)

 

 

 

YTD 2005

 

 

 

 

 

Balance

 

Income

 

%

 

Commercial Lending

 

$

2,576

 

$

8,694

 

14

%

Consumer Lending

 

4,700

 

14,660

 

23

 

Leasing and Equipment Finance

 

1,390

 

8,483

 

13

 

Total Power Assets®

 

$

8,666

 

31,837

 

50

 

 

 

 

 

 

 

 

 

Traditional Branches (182)

 

$

6,399

 

14,407

 

23

 

Supermarket Branches (248)

 

1,710

 

4,704

 

7

 

Total Power Liabilities®

 

$

8,109

 

19,111

 

30

 

Total Power Assets & Liabilities

 

 

 

50,948

 

80

 

Equity

 

 

 

5,385

 

9

 

Total Power Businesses

 

 

 

56,333

 

89

 

Treasury Services and Other

 

 

 

7,132

 

11

 

Net Income

 

 

 

$

63,465

 

100

%

 

39.)                           Interest Rate Risk Management

 

Cumulative One Year Positive Gap

 

 

 

12/01

 

12/02

 

12/03

 

12/04

 

3/05

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Gap

 

$

242

 

$

1,110

 

$

161

 

$

585

 

$

386

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Gap as a % of Total Assets

 

2.1

%

9.1

%

1.4

%

4.7

%

3.0

%

 

40.)                           Securities Available for Sale and Residential Portfolios

 

Ending Balance

 

12/01

 

12/02

 

12/03

 

12/04

 

3/05

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities available for sale portfolio1

 

$

1,575

 

$

2,355

 

$

1,524

 

$

1,622

 

$

1,809

 

Residential portfolio

 

2,733

 

1,800

 

1,213

 

1,014

 

950

 

Total

 

$

4,308

 

$

4,155

 

$

2,737

 

$

2,636

 

$

2,759

 

 

 

 

 

 

 

 

 

 

 

 

 

Rate:

 

6.76

%

6.25

%

5.55

%

5.29

%

5.39

%

Unrealized Gain / (Loss):

 

$

9.8

 

$

72.3

 

$

8.9

 

$

(2.2

)

$

(23.1

)

 

1                    Based on historical amortized cost

 



 

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

 

Year Ended December 31, 2004

(Percent)

 

MELLON FINANCIAL CORP

 

MEL

 

2.24

%

NATIONAL CITY CORP

 

NCC

 

2.19

%

U S BANCORP

 

USB

 

2.17

%

TCF FINANCIAL CORP

 

TCB

 

2.15

%

SYNOVUS FINANCIAL CP

 

SNV

 

1.87

%

WELLS FARGO & CO

 

WFC

 

1.72

%

MARSHALL & ILSLEY CORP

 

MI

 

1.68

%

FIRST TENNESSEE NATL CORP

 

FHN

 

1.67

%

FIFTH THIRD BANCORP

 

FITB

 

1.64

%

BB&T CORP

 

BBT

 

1.63

%

MERCANTILE BANKSHARES CORP

 

MRBK

 

1.63

%

PNC FINANCIAL SVCS GROUP INC

 

PNC

 

1.62

%

UNIONBANCAL CORP

 

UB

 

1.62

%

COMMERCE BANCSHARES INC

 

CBSH

 

1.54

%

BANK OF AMERICA CORP

 

BAC

 

1.54

%

BANK OF NEW YORK CO INC

 

BK

 

1.54

%

CITY NATIONAL CORP

 

CYN

 

1.51

%

NEW YORK CMNTY BANCORP INC

 

NYB

 

1.50

%

FULTON FINANCIAL

 

FULT

 

1.46

%

COMERICA INC.

 

CMA

 

1.45

%

ASSOCIATED BANC CORP

 

ASBC

 

1.44

%

HIBERNIA CORP -CL A

 

HIB

 

1.43

%

M & T BANK CORP

 

MTB

 

1.41

%

SKY FINANCIAL GR

 

SKYF

 

1.39

%

INVESTORS FINL

 

IFIN

 

1.39

%

WESTCORP

 

WES

 

1.38

%

NORTH FORK BANCORPORATION

 

NFB

 

1.35

%

ZIONS BANCORPORATION

 

ZION

 

1.35

%

COMPASS BANCSHARES INC

 

CBSS

 

1.34

%

AMSOUTH BANCORPORATION

 

ASO

 

1.31

%

HUDSON CITY BANCORP

 

HCBK

 

1.29

%

BOK FINANCIAL CORP

 

BOKF

 

1.27

%

HUNTINGTON BANCSHARES

 

HBAN

 

1.26

%

REGIONS FINL CORP

 

RF

 

1.24

%

CITIGROUP INC

 

C

 

1.24

%

POPULAR INC

 

BPOP

 

1.18

%

WACHOVIA CORP

 

WB

 

1.17

%

NORTHERN TRUST CORP

 

NTRS

 

1.17

%

SUNTRUST BANKS INC

 

STI

 

1.11

%

BANKNORTH GROUP INC

 

BNK

 

1.10

%

KEYCORP

 

KEY

 

1.09

%

BANCORPSOUTH INC

 

BXS

 

1.05

%

COMMERCE BANCORP INC/NJ

 

CBH

 

1.03

%

COLONIAL BANCGROUP

 

CNB

 

1.00

%

WEBSTER FINANCIAL CORP

 

WBS

 

.97

%

SOUTH FINANCIAL

 

TSFG

 

.97

%

SOVEREIGN BANCORP INC

 

SOV

 

.93

%

STATE STREET CORP

 

STT

 

.88

%

FIRST CITIZENS

 

FCNCA

 

.58

%

J P MORGAN CHASE & CO

 

JPM

 

.46

%

 

 

 

 

 

 

AVERAGE

 

 

 

1.38

%

 

*  Represents the fifty largest bank holding companies in the U.S. based on asset size at 12/31/04

Source:  Citigate Financial Intelligence

 



 

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

 

Year Ended December 31, 2004

(Percent)

 

TCF FINANCIAL CORP

 

TCB

 

27.02

%

NATIONAL CITY CORP

 

NCC

 

25.11

%

FIRST TENNESSEE NATL CORP

 

FHN

 

23.12

%

INVESTORS FINL

 

IFIN

 

22.67

%

U S BANCORP

 

USB

 

21.49

%

MELLON FINANCIAL CORP

 

MEL

 

20.40

%

WELLS FARGO & CO

 

WFC

 

19.38

%

BANK OF AMERICA CORP

 

BAC

 

19.18

%

COMPASS BANCSHARES INC

 

CBSS

 

18.88

%

COMMERCE BANCORP INC/NJ

 

CBH

 

18.58

%

AMSOUTH BANCORPORATION

 

ASO

 

18.34

%

UNIONBANCAL CORP

 

UB

 

18.24

%

SYNOVUS FINANCIAL CP

 

SNV

 

17.89

%

HUDSON CITY BANCORP

 

HCBK

 

17.51

%

POPULAR INC

 

BPOP

 

17.43

%

MARSHALL & ILSLEY CORP

 

MI

 

17.37

%

FIFTH THIRD BANCORP

 

FITB

 

17.35

%

PNC FINANCIAL SVCS GROUP INC

 

PNC

 

16.94

%

WESTCORP

 

WES

 

16.89

%

HUNTINGTON BANCSHARES

 

HBAN

 

16.58

%

CITIGROUP INC

 

C

 

16.56

%

BANK OF NEW YORK CO INC

 

BK

 

16.25

%

CITY NATIONAL CORP

 

CYN

 

16.07

%

NORTHERN TRUST CORP

 

NTRS

 

15.92

%

HIBERNIA CORP -CL A

 

HIB

 

15.75

%

SKY FINANCIAL GR

 

SKYF

 

15.74

%

ASSOCIATED BANC CORP

 

ASBC

 

15.35

%

COMMERCE BANCSHARES INC

 

CBSH

 

15.31

%

ZIONS BANCORPORATION

 

ZION

 

15.23

%

BB&T CORP

 

BBT

 

14.98

%

COMERICA INC.

 

CMA

 

14.82

%

FULTON FINANCIAL

 

FULT

 

13.97

%

BOK FINANCIAL CORP

 

BOKF

 

13.64

%

COLONIAL BANCGROUP

 

CNB

 

13.64

%

KEYCORP

 

KEY

 

13.55

%

STATE STREET CORP

 

STT

 

13.41

%

WACHOVIA CORP

 

WB

 

13.08

%

M & T BANK CORP

 

MTB

 

12.62

%

BANCORPSOUTH INC

 

BXS

 

12.39

%

SUNTRUST BANKS INC

 

STI

 

12.23

%

MERCANTILE BANKSHARES CORP

 

MRBK

 

12.21

%

NEW YORK CMNTY BANCORP INC

 

NYB

 

11.73

%

WEBSTER FINANCIAL CORP

 

WBS

 

11.41

%

SOVEREIGN BANCORP INC

 

SOV

 

11.00

%

REGIONS FINL CORP

 

RF

 

10.84

%

BANKNORTH GROUP INC

 

BNK

 

10.70

%

NORTH FORK BANCORPORATION

 

NFB

 

10.68

%

SOUTH FINANCIAL

 

TSFG

 

10.01

%

FIRST CITIZENS

 

FCNCA

 

7.08

%

J P MORGAN CHASE & CO

 

JPM

 

5.87

%

 

 

 

 

 

 

AVERAGE

 

 

 

15.65

%

 

*  Represents the fifty largest bank holding companies in the U.S. based on asset size at 12/31/04

Source:  Citigate Financial Intelligence

 



 

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

 

Year Ended December 31, 2004

(Percent)

 

NORTHERN TRUST CORP

 

NTRS

 

.02

%

FULTON FINANCIAL

 

FULT

 

.06

%

CITY NATIONAL CORP

 

CYN

 

.07

%

UNIONBANCAL CORP

 

UB

 

.10

%

WEBSTER FINANCIAL CORP

 

WBS

 

.10

%

VALLEY NATL BANC

 

VLY

 

.11

%

TCF FINANCIAL CORP

 

TCB

 

.11

%

MARSHALL & ILSLEY CORP

 

MI

 

.11

%

NORTH FORK BANCORPORATION

 

NFB

 

.11

%

TRUSTMARK CORP

 

TRMK

 

.13

%

MERCANTILE BANKSHARES CORP

 

MRBK

 

.14

%

ASSOCIATED BANC CORP

 

ASBC

 

.14

%

WACHOVIA CORP

 

WB

 

.15

%

COMMERCE BANCORP INC - NJ

 

CBH

 

.19

%

ZIONS BANCORPORATION

 

ZION

 

.19

%

COLONIAL BANCGROUP

 

CNB

 

.19

%

BANKNORTH GROUP INC

 

BNK

 

.21

%

UMB FINANCIAL

 

UMBF

 

.22

%

M & T BANK CORP

 

MTB

 

.22

%

SUNTRUST BANKS INC

 

STI

 

.22

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