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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):  August 18, 2005

 


TCF FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

 


 

Delaware

001-10253

41-1591444

(State or other jurisdiction of

(Commission File Number)

(IRS Employer Identification No.)

incorporation or organization)

 

 

 

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 second 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 supplement investor presentation materials previously furnished as an exhibit to Current Reports on Form 8-K dated August 8, 2005.  These materials are dated August 18, 2005, and TCF does not undertake to update the materials after that date.

 

On August 18, 2005, the Company will make a presentation which will be webcast beginning at approximately 10:00 a.m. Eastern Time (9:00 a.m. Central Time).  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 second 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 supplement investor presentation materials previously furnished as an exhibit to Current Reports on Form 8-K dated August 8, 2005.  These materials are dated August 18, 2005, and TCF does not undertake to update the materials after that date.

 

On August 18, 2005, the Company will make a presentation which will be webcast beginning at approximately 10:00 a.m. Eastern Time (9:00 a.m. Central Time).  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

 

Analyst Presentation of TCF Financial Corporation,

 

 

Dated August 18, 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:    August 18, 2005

 

3


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Section 2: EX-99.1 (EX-99.1)

Exhibit 99.1

TCF Financial Corporation
Investing in the Future
TCF Analyst Day
August 18,2005

1)    Strategic Overview & Business Update

William A. Cooper
Chairman & CEO

Lynn A. Nagorske
President & COO

2)    Corporate Profile

At June 30, 2005

    $12.6 billion financial holding company headquartered in Minnesota - 47th largest1 bank in the U.S. based on asset size and 39th largest1 based on market cap

    435 bank branches, 132 branches opened since January 1, 2000

    1,151 TCF EXPRESS TELLER® ATMs, 622 off-site

    12th largest issuer of Visa® Classic debit cards2

    22nd largest overall issuer of Visa® debit and credit cards2

    ROA 2.13%; ROE 28.74%; ROTE3 34.66%

    1,595,001 checking accounts

1   Source: CapitalBridge 6/30/05

2   Source: VISA® 1Q05

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

3)    Corporate Profile

At June 30, 2005

    Bank branches located in six states

 

 

At 6/30/05

 

At 1/1/00

 

Traditional

 

177

 

136

 

Supermarket

 

250

 

195

 

Campus

 

8

 

7

 

Total

 

435

 

338

 

 

 

At 6/30/05

 

At 1/1/00

 

Minnesota

 

102

 

82

 

Illinois

 

197

 

150

 

Michigan

 

61

 

64

 

Wisconsin

 

34

 

31

 

Colorado

 

35

 

10

 

Indiana

 

6

 

1

 

Total

 

435

 

338

 

4)    Corporate Philosophy

              TCF Banks Everyone

                    Every customer is valuable and contributes to profitability (No 80/20 rule)

              Convenience

                    Open seven days a week, 364 days/year

                    Traditional, supermarket and campus branches

                    TCF EXPRESS TELLER® ATMs

                    Debit cards

                    Phone banking

                    TCF Totally Free OnlineSM banking (889,000 Internet banking accounts)

              Organized Geographically and by Function

                    Banking process is local and decentralized

                    Functional product line management is centralized

                    Operational functions which involve paper processing are centralized to produce greater efficiencies

5)    Corporate Philosophy

              The Checking Account is the Anchor Account of the Banking Relationship

                    TCF has accumulated a large number of low cost checking accounts with significant fee income

                    Over 37% of profits are earned from the deposit side of the bank

                    TCF sources the majority of its consumer loans from its checking account base

              TCF Emphasizes Power Assets® and Power Liabilities® to generate Power Profits

                    These asset categories (consumer loans, commercial loans and leases) generate the highest returns and are funded by low interest cost core deposits

                    TCF’s net interest margin of 4.53% is approximately 97 basis points higher than the Top 50 Banks as a result of this strategy

                    These Power Asset/Liability categories generate 83% of TCF’s profits and are growing



6)    Corporate Philosophy

              Strong Credit Quality through Secured Lending

                    As a result of our low cost deposit funding costs, we can minimize credit risk

              TCF believes interest-rate risk should be minimized since speculation does not generate consistent profits and is high risk

              TCF uses technology to enhance productivity, customer service and develop new products

              De Novo Expansion

                    TCF is increasing its market share through de novo expansion:
— Opening new branches
— Starting new businesses
— Offering new products and services

7)    Financial Highlights

($ millions, except per-share data)

 

Year-to-Date

 

 

 

 

 

2005

 

2004

 

Change

 

Net Interest Income

 

$

260.3

 

$

240.9

 

8.1

%

Fees & Other Revenue:

 

 

 

 

 

 

 

Banking

 

186.4

 

190.3

 

(2.1

)

Other

 

33.8

 

35.5

 

(4.8

)

Total Fees and Other Revenue

 

220.2

 

225.8

 

(2.5

)

Gains on Sales of Securities

 

9.7

 

12.7

 

(23.6

)

Total Non-Interest Income

 

229.9

 

238.5

 

(3.6

)

Total Revenue

 

490.2

 

479.4

 

2.3

 

Provision for Credit Losses

 

(2.0

)

4.2

 

N.M.

 

Non-Interest Expense

 

298.4

 

284.6

 

4.8

 

Net Income

 

$

134.1

 

$

125.9

 

6.5

 

Diluted EPS

 

$

1.00

 

$

.91

 

9.9

 

ROA

 

2.13

%

2.15

%

(0.02

) bps

ROE

 

28.74

%

26.82

%

1.92

  bps

 

N.M.  Not meaningful

8)    Net Income +7%*

 

 

2001

 

2002

 

2003

 

2004

 

20051

 

 

 

($ millions)

 

 

 

 

 

First Quarter

 

$

48.2

 

$

56.3

 

$

60.1

 

$

60.7

 

$

63.5

 

Second Quarter

 

$

52.0

 

$

58.0

 

$

60.3

 

$

65.2

 

$

70.6

 

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

 

$

134

 

 

1   Year-to-date

*  YTD growth rate (‘05 vs. ‘04)

9)    Diluted EPS +10%*

 

 

1996

 

1997

 

1998

 

1999

 

2000

 

2001

 

2002

 

2003

 

2004

 

20051

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

.60

 

$

.84

 

$

.88

 

$

1.00

 

$

1.17

 

$

1.35

 

$

1.58

 

$

1.53

 

$

1.86

 

$

1.00

 

 

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

1   Year-to-date

10)  Power ProfitsSM

Average Balance ($ millions)

 

 

 

 

 

 

 

Profit center net income ($ 000s)

 

 

 

YTD 2005

 

 

 

 

 

Balance

 

Income

 

%

 

Commercial Lending

 

$

2,605

 

$

16,099

 

12

%

Consumer Lending

 

4,585

 

27,979

 

21

 

Leasing and Equipment Finance

 

1,401

 

17,048

 

13

 

Total Power Assets®

 

$

8,591

 

61,126

 

46

 

 

 

 

 

 

 

 

 

Traditional and Campus Branches (185)

 

$

6,515

 

34,779

 

26

 

Supermarket Branches (250)

 

1,750

 

14,261

 

11

 

Total Power Liabilities®

 

$

8,265

 

49,040

 

37

 

Total Power Assets & Liabilities

 

 

 

110,166

 

83

 

Equity

 

 

 

11,371

 

8

 

Total Power Businesses

 

 

 

121,537

 

91

 

Gains on Sales of Securities

 

 

 

9,676

 

7

 

Treasury Services and Other

 

 

 

2,893

 

2

 

Net Income

 

 

 

$

134,106

 

100

%

 

11)  TCF vs. Top 50 Banks1 - Return on Assets

Quarter Ended June 30, 2005
(Percent)

 

TCF FINL CORP

 

TCB

 

2.22

%

US BANCORP

 

USB

 

2.19

%

MELLON FINANCIAL

 

MEL

 

2.10

%

NATL CITY CORP

 

NCC

 

2.04

%

NORTH FORK BANCP

 

NFB

 

1.94

%

SYNOVUS FINL

 

SNV

 

1.88

%

WELLS FARGO & CO

 

WFC

 

1.71

%

MARSHALL &ILSLEY

 

MI

 

1.71

%

MERCANTILE BANKS

 

MRBK

 

1.64

%

BB&T CORPORATION

 

BBT

 

1.59

%

ASSOC BANC-CORP

 

ASBC

 

1.58

%

CITY NATL CORP

 

CYN

 

1.55

%

COMMERCE BCSHS

 

CBSH

 

1.54

%

COMERICA INC

 

CMA

 

1.50

%

WESTCORP

 

WES

 

1.50

%

BANK NEW YORK

 

BK

 

1.48

%

FIFTH THIRD BANC

 

FITB

 

1.48

%

HIBERNIA CORP -A

 

HIB

 

1.47

%

FULTON FINANCIAL

 

FULT

 

1.47

%

PNC FINANCIAL SE

 

PNC

 

1.47

%

UNIONBANCAL CORP

 

UB

 

1.46

%

NEW YORK CMNTY BANCORP INC

 

NYB

 

1.46

%

REGIONS FINL

 

RF

 

1.46

%

BANK OF AMERICA

 

BAC

 

1.45

%

M&T BANK CORP

 

MTB

 

1.44

%

CITIGROUP INC

 

C

 

1.43

%

VALLEY NATL BANC

 

VLY

 

1.38

%

COMPASS BANCSHS

 

CBSS

 

1.37

%

ZIONS BANCORP

 

ZION

 

1.37

%

INVESTORS FINL

 

IFIN

 

1.34

%

AMSOUTH BANCORP

 

ASO

 

1.33

%

FIRST HORIZON NA

 

FHN

 

1.33

%

BOK FINL CORP

 

BOKF

 

1.31

%

WACHOVIA CORP

 

WB

 

1.29

%

SKY FINANCIAL GR

 

SKYF

 

1.28

%

POPULAR INC

 

BPOP

 

1.23

%

HUNTINGTON BANC

 

HBAN

 

1.20

%

SUNTRUST BANKS

 

STI

 

1.20

%

NORTHERN TRUST

 

NTRS

 

1.20

%

KEYCORP

 

KEY

 

1.15

%

HUDSON CITY BANCORP

 

HCBK

 

1.12

%

COLONIAL BANCGRO

 

CNB

 

1.05

%

SOVEREIGN BANCORP INC

 

SOV

 

1.01

%

COMMERCE BANC NJ

 

CBH

 

1.00

%

WEBSTER FINANCIAL CORP

 

WBS

 

.92

%

SOUTH FINANCIAL

 

TSFG

 

.91

%

STATE ST CORP

 

STT

 

.81

%

BANKNORTH GROUP

 

BNK

 

.81

%

FIRST CITIZENS-A

 

FCNCA

 

.72

%

JP MORGAN CHASE

 

JPM

 

.63

%

 

 

 

 

 

 

AVERAGE

 

 

 

1.39

%

 

1   Represents the fifty largest bank holding companies in the U.S. based on asset size at 6/30/05

Source:  CapitalBridge



12)  TCF vs. Top 50 Banks1 - Return on Equity

Quarter Ended June 30, 2005
(Percent)

 

TCF FINL CORP

 

TCB

 

30.23

%

NATL CITY CORP

 

NCC

 

22.78

%

INVESTORS FINL

 

IFIN

 

22.43

%

US BANCORP

 

USB

 

22.36

%

FIRST HORIZON NA

 

FHN

 

20.89

%

CITIGROUP INC

 

C

 

20.16

%

VALLEY NATL BANC

 

VLY

 

19.87

%

WELLS FARGO & CO

 

WFC

 

19.51

%

COMPASS BANCSHS

 

CBSS

 

19.20

%

MELLON FINANCIAL

 

MEL

 

19.18

%

AMSOUTH BANCORP

 

ASO

 

19.03

%

COMMERCE BANC NJ

 

CBH

 

18.99

%

POPULAR INC

 

BPOP

 

18.55

%

MARSHALL &ILSLEY

 

MI

 

17.98

%

SYNOVUS FINL

 

SNV

 

17.91

%

WESTCORP

 

WES

 

17.58

%

UNIONBANCAL CORP

 

UB

 

17.30

%

BANK OF AMERICA

 

BAC

 

16.94

%

ASSOC BANC-CORP

 

ASBC

 

16.84

%

FIFTH THIRD BANC

 

FITB

 

16.56

%

CITY NATL CORP

 

CYN

 

16.46

%

COMERICA INC

 

CMA

 

16.30

%

BANK NEW YORK

 

BK

 

16.24

%

NORTHERN TRUST

 

NTRS

 

16.19

%

HIBERNIA CORP -A

 

HIB

 

16.15

%

COMMERCE BCSHS

 

CBSH

 

15.76

%

PNC FINANCIAL SE

 

PNC

 

15.69

%

ZIONS BANCORP

 

ZION

 

15.66

%

HUNTINGTON BANC

 

HBAN

 

15.45

%

BB&T CORPORATION

 

BBT

 

14.92

%

WACHOVIA CORP

 

WB

 

14.85

%

NORTH FORK BANCP

 

NFB

 

14.62

%

KEYCORP

 

KEY

 

14.39

%

BOK FINL CORP

 

BOKF

 

14.34

%

FULTON FINANCIAL

 

FULT

 

14.11

%

SKY FINANCIAL GR

 

SKYF

 

13.83

%

SUNTRUST BANKS

 

STI

 

13.35

%

M&T BANK CORP

 

MTB

 

13.31

%

STATE ST CORP

 

STT

 

13.28

%

REGIONS FINL

 

RF

 

13.01

%

COLONIAL BANCGRO

 

CNB

 

12.67

%

MERCANTILE BANKS

 

MRBK

 

12.51

%

SOVEREIGN BANCORP INC

 

SOV

 

11.50

%

NEW YORK CMNTY BANCORP INC

 

NYB

 

11.44

%

WEBSTER FINANCIAL CORP

 

WBS

 

10.41

%

SOUTH FINANCIAL

 

TSFG

 

9.52

%

FIRST CITIZENS-A

 

FCNCA

 

8.87

%

JP MORGAN CHASE

 

JPM

 

8.40

%

HUDSON CITY BANCORP

 

HCBK

 

7.42

%

BANKNORTH GROUP

 

BNK

 

5.31

%

 

 

 

 

 

 

AVERAGE

 

 

 

15.80

%

 

1   Represents the fifty largest bank holding companies in the U.S. based on asset size at 6/30/05

Source:  CapitalBridge

13)  New Products and Services

    MILES PlusSM Card Loyalty Programs

                    Premier (Retail)

                    Small Business

    TCF Check CashingSM and Money Transfers

    Electronic statement delivery

    TCF index Investment StrategiesTM

    TCF Visa® Gift Card

    American Express® Travelers Cheque Card

    Medical equipment leasing

14)  Interest Rate Risk Management & Capital Strategies

Neil W. Brown
Chief Financial Officer



15)  Net Interest Income +8%*

 

 

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

 

$

131.3

 

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

 

$

260

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Margin:

 

4.51

%

4.71

%

4.54

%

4.54

%

4.54

%1

 

1   Year-to-date

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

16)  TCF vs. Top 50 Banks1 - Net Interest Margin

Quarter Ended June 30, 2005
(Percent)

 

WESTCORP

 

WES

 

5.50

%

WELLS FARGO & CO

 

WFC

 

4.83

%

REGIONS FINL

 

RF

 

4.66

%

CITY NATL CORP

 

CYN

 

4.60

%

TCF FINL CORP

 

TCB

 

4.53

%

NORTH FORK BANCP

 

NFB

 

4.48

%

ZIONS BANCORP

 

ZION

 

4.44

%

MERCANTILE BANKS

 

MRBK

 

4.29

%

US BANCORP

 

USB

 

4.15

%

NATL CITY CORP

 

NCC

 

4.13

%

COMMERCE BANC NJ

 

CBH

 

4.10

%

SYNOVUS FINL

 

SNV

 

4.10

%

UNIONBANCAL CORP

 

UB

 

3.98

%

HIBERNIA CORP -A

 

HIB

 

3.98

%

SKY FINANCIAL GR

 

SKYF

 

3.97

%

BANKNORTH GROUP

 

BNK

 

3.96

%

BB&T CORPORATION

 

BBT

 

3.93

%

FULTON FINANCIAL

 

FULT

 

3.89

%

ASSOC BANC-CORP

 

ASBC

 

3.88

%

COMMERCE BCSHS

 

CBSH

 

3.81

%

POPULAR INC

 

BPOP

 

3.80

%

M&T BANK CORP

 

MTB

 

3.79

%

VALLEY NATL BANC

 

VLY

 

3.72

%

COMERICA INC

 

CMA

 

3.70

%

COLONIAL BANCGRO

 

CNB

 

3.70

%

KEYCORP

 

KEY

 

3.69

%

SOUTH FINANCIAL

 

TSFG

 

3.55

%

COMPASS BANCSHS

 

CBSS

 

3.54

%

FIRST CITIZENS-A

 

FCNCA

 

3.49

%

WACHOVIA CORP

 

WB

 

3.48

%

AMSOUTH BANCORP

 

ASO

 

3.44

%

FIRST HORIZON NA

 

FHN

 

3.39

%

BOK FINL CORP

 

BOKF

 

3.37

%

FIFTH THIRD BANC

 

FITB

 

3.37

%

HUNTINGTON BANC

 

HBAN

 

3.36

%

BANK OF AMERICA

 

BAC

 

3.35

%

SOVEREIGN BANCORP INC

 

SOV

 

3.34

%

MARSHALL &ILSLEY

 

MI

 

3.32

%

CITIGROUP INC

 

C

 

3.32

%

WEBSTER FINANCIAL CORP

 

WBS

 

3.26

%

SUNTRUST BANKS

 

STI

 

3.20

%

PNC FINANCIAL SE

 

PNC

 

3.12

%

NEW YORK CMNTY BANCORP INC

 

NYB

 

3.01

%

JP MORGAN CHASE

 

JPM

 

2.68

%

HUDSON CITY BANCORP

 

HCBK

 

2.31

%

BANK NEW YORK

 

BK

 

2.25

%

MELLON FINANCIAL

 

MEL

 

1.98

%

INVESTORS FINL

 

IFIN

 

1.69

%

NORTHERN TRUST

 

NTRS

 

1.67

%

STATE ST CORP

 

STT

 

1.06

%

 

 

 

 

 

 

AVERAGE

 

 

 

3.56

%

 

1   Represents the fifty largest bank holding companies in the U.S. based on asset size at 6/30/05

Source:  CapitalBridge



 

17)  Fed Funds vs. 10-Year Treasury

 

 

 

10-Year

 

 

 

 

 

Treasury

 

Fed Funds

 

4Q99

 

6.28

 

5.30

 

1Q00

 

6.26

 

5.85

 

2Q00

 

6.10

 

6.53

 

3Q00

 

5.80

 

6.52

 

4Q00

 

5.24

 

6.40

 

1Q01

 

4.89

 

5.31

 

2Q01

 

5.28

 

3.97

 

3Q01

 

4.73

 

3.07

 

4Q01

 

5.09

 

1.82

 

1Q02

 

5.28

 

1.73

 

2Q02

 

4.93

 

1.75

 

3Q02

 

3.87

 

1.75

 

4Q02

 

4.03

 

1.24

 

1Q03

 

3.81

 

1.25

 

2Q03

 

3.33

 

1.22

 

3Q03

 

4.27

 

1.01

 

4Q03

 

4.27

 

1.00

 

1Q04

 

3.83

 

1.00

 

2Q04

 

4.73

 

1.03

 

3Q04

 

4.13

 

1.62

 

4Q04

 

4.23

 

2.16

 

1Q05

 

4.50

 

2.56

 

2Q05

 

4.00

 

3.01

 

18)  TCF NIM vs. Top 50 Banks

 

 

 

TCF

 

 

 

 

 

Net interest Margin

 

Top 50 Banks

 

4Q99

 

4.38

 

3.94

 

1Q00

 

4.32

 

3.82

 

2Q00

 

4.38

 

3.81

 

3Q00

 

4.38

 

3.81

 

4Q00

 

4.33

 

3.60

 

1Q01

 

4.35

 

3.81

 

2Q01

 

4.40

 

3.87

 

3Q01

 

4.55

 

3.87

 

4Q01

 

4.74

 

3.88

 

1Q02

 

4.83

 

4.09

 

2Q02

 

4.76

 

3.93

 

3Q02

 

4.68

 

4.06

 

4Q02

 

4.59

 

3.92

 

1Q03

 

4.45

 

3.80

 

2Q03

 

4.45

 

3.64

 

3Q03

 

4.57

 

3.72

 

4Q03

 

4.54

 

3.66

 

1Q04

 

4.53

 

3.56

 

2Q04

 

4.53

 

3.53

 

3Q04

 

4.56

 

3.53

 

4Q04

 

4.56

 

3.55

 

1Q05

 

4.56

 

3.56

 

2Q05

 

4.53

 

3.56

 

 

 

 

4Q99

 

2Q05

 

Change

 

TCF

 

4.38

%

4.53

%

15

bps

Top 50 Banks

 

3.94

%

3.56

%

(38

)bps

Difference

 

44

bps

97

bps

(53

bps

19)  Securities Available for Sale and Residential Portfolios

Ending Balance

 

12/01

 

12/02

 

12/03

 

12/04

 

6/05

 

 

 

($ millions)

 

 

 

 

 

Securities available for sale portfolio1

 

$

1,575

 

$

2,355

 

$

1,524

 

$

1,622

 

$

1,404

 

Residential portfolio

 

 

2,733

 

 

1,800

 

 

1,213

 

 

1,014

 

 

884

 

Total

 

$

4,308

 

$

4,155

 

$

2,737

 

$

2,636

 

$

2,288

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yield:

 

 

6.76

%

 

6.25

%

 

5.55

%

 

5.29

%

 

5.37

%

% of Total Assets

 

 

37.9

%

 

34.1

%

 

24.2

%

 

21.4

%

 

18.2

%

 

1   Based on historical amortized cost

20)  Premier Checking & Savings Deposits +123%*

Ending Balance

 

6/30/04

 

9/30/04

 

12/31/04

 

3/31/05

 

6/30/05

 

 

 

(000s)

 

 

 

 

 

Premier Checking Accounts

 

$

202

 

$

291

 

$

397

 

$

525

 

$

627

 

Premier Savings Accounts

 

$

67

 

$

156

 

$

244

 

$

324

 

$

370

 

Total

 

$

269

 

$

447

 

$

641

 

$

849

 

$

997

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rate:

 

 

1.21

%

 

1.48

%

 

1.86

%

 

2.03

%

 

2.21

%

 

*  Twelve-month growth rate

21)  Capital



 

22)  Realized Tangible Equity*

 

 

 

12/01

 

12/02

 

12/03

 

12/04

 

6/05

 

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized Tangible Equity

 

$

756

 

$

778

 

$

764

 

$

803

 

$

797

 

 

 

 

 

 

 

 

 

 

 

 

 

% of Total Assets

 

6.66

%

6.38

%

6.75

%

6.51

%

6.32

%

 

*  See reconciliation slide in the appendix

23)  Risk-Based Capital

 

 

12/01

 

12/02

 

12/03

 

12/04

 

6/05

 

 

 

($ millions)

 

 

 

 

 

Actual

 

$

834

 

$

851

 

$

842

 

$

959

 

$

998

 

Minimum Requirement

 

$

593

 

$

622

 

$

628

 

$

705

 

$

739

 

Well Capitalized Requirement

 

$

741

 

$

777

 

$

785

 

$

881

 

$

924

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1:

 

10.24

%

9.96

%

9.75

%

9.12

%

8.62

%

Total:

 

11.26

%

10.95

%

10.73

%

10.88

%

10.80

%

 

 

 

 

 

 

 

 

 

 

 

 

Excess*:

 

$

93.2

 

$

73.6

 

$

57.4

 

$

77.4

 

$

74.3

 

 

*  Excess over “well-capitalized” requirement

24)  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*

 

82.4

 

57.6

 

140.0

 

134.1

 

104

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

644.9

 

$

418.6

 

$

1,063.5

 

$

1,045.2

 

 

102

%

 

*  Year-to-date

25)  Share Repurchase Program

    Repurchased 1,250,000 shares of common stock during the 2005 second quarter at an average cost of $25.44 per share

    Since 1/1/98:

                    TCF repurchased 57 million shares at an average cost of $18.08 per share

                    $1 billion investment

                    $1.5 billion value at 6/30/05

    At 6/30/05, 7.1 million shares remain available to purchase under board authorizations

26)  Dividend History +13%*

 

 

1996

 

1997

 

1998

 

1999

 

2000

 

2001

 

2002

 

2003

 

2004

 

2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends Paid

 

$

.18

 

$

.23

 

$

.31

 

$

.36

 

$

.41

 

$

.50

 

$

.58

 

$

.65

 

$

.75

 

$

.425

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend payout ratio:

 

30

%

28

%

35

%

36

%

35

%

37

%

37

%

43

%

40

%

43

%

10-year compounded annual growth rate 20%
Rank 6th of the Top 50 Banks
1

 

1   Source:  CapitalBridge

*  Annual growth rate (‘05 vs. ‘04)

27)  Banking Fee Income, Card Products, and Campus Banking

Earl D. Stratton
Chief Information Officer

28)  Checking Accounts +6%*

 

 

12/01

 

12/02

 

12/03

 

12/04

 

6/05

 

 

 

(000s)

 

 

 

 

 

Supermarket Branches

 

496

 

549

 

608

 

652

 

681

 

Traditional & Campus Branches

 

753

 

789

 

836

 

883

 

914

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

1,249

 

1,338

 

1,444

 

1,535

 

1,595

 

 

*  Twelve-month growth rate

29)  Summary of Banking Fee Income
($ millions)

 

For the Six Months

 

 

 

 

 

 

 

Ended June:

 

2005

 

2004

 

Change

 

Fees & service charges

 

$

122.9

 

$

132.8

 

(7

)%

Card revenue

 

37.4

 

29.5

 

27

 

ATM

 

20.5

 

21.1

 

(3

)

Investments & insurance

 

5.6

 

6.9

 

(19

)

Total

 

$

186.4

 

$

190.3

 

(2

)%

30)  Customer Payment Activity

 

 

YTD
June 2004

 

YTD
June 2005

 

%
Increase/
Decrease

 

(Number of transactions in 000’s)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checks

 

59,480

 

51,903

 

(12.7

)%

ATM

 

22,685

 

22,096

 

(2.6

)%

ACH

 

20,222

 

24,516

 

21.2

%

Card Purchases

 

61,179

 

73,906

 

20.8

%

 



31)  Customer Behavior

    Checking Account Customer Behavior

                    Debit card transactions continue to replace checks

                    More debit card transactions than checks

                    More ACH transactions

                    Retaining higher average account balances

                    More internet banking customers

    Ramifications

                    Consumer price resistance

                    Lower deposit service charge revenue

                    Higher account attrition

                    Higher card revenues

32)  Card Revenue +27%*

 

 

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

 

$

19.8

 

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

 

$

37.4

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales volume:

 

$

2,560

 

$

3,216

 

$

3,899

 

$

4,735

 

$

2,684

1

 

 

 

 

 

 

 

 

 

 

 

 

Average off-line interchange rate:

 

1.55

%

1.55

%

1.43

%

1.40

%

1.40

%1

 

1   Year-to-date

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

33)  Card Revenue

    12th largest issuer of Visa® Classic debit cards1

    22nd largest overall issuer of Visa® debit and credit cards1

    18% increase in sales volume2

    Revenue of $19.7 million in 2Q05, an increase of 23%2

    Number of active accounts up 50,544 or 7%2

    15.3 transactions per month on active cards, up 14%2

    Continue expansion of card loyalty programs

 

1   Source: VISA, 1Q05

2   2Q05 vs. 2Q04

34)  Campus Banking

At June 30, 2005

    Alliances with the University of Minnesota and University of Michigan plus eight other colleges, including a recent agreement with DePaul University in Chicago

    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.

    85,980 total checking accounts

    $141.2 million in total deposits

35)  Campus Banking - MATC

Milwaukee Area Technical College

                    Agreement signed July 15, 2005

                    64,400 faculty, staff and students

                    Four campus locations: downtown Milwaukee, West Allis, Mequon and Oak Creek

36)  New Branch Expansion, Small Business & Commercial Lending

Barry N. Winslow
CEO & President
TCF National Bank

37)  Total New Branches
Branches opened since January 1, 2000

 

 

Supermarket

 

Traditional & Campus

 

Total

 

# of Branches Opened

 

 

 

 

 

 

 

(#)

 

 

 

12/00

 

21

 

3

 

24

 

25

 

12/01

 

41

 

8

 

49

 

26

 

12/02

 

56

 

20

 

76

 

27

 

12/03

 

61

 

34

 

95

 

19

 

12/04

 

72

 

53

 

125

 

30

 

  6/05

 

74

 

58

 

132

 

7

 

2005 Forecast

 

79

 

74

 

153

 

28

 

38)  New Branch Model - Net Income

 

 

Year of Existence

 

 

 

1

 

2

 

3

 

4

 

5

 

6

 

7

 

8

 

9

 

10

 

 

 

Net Income1 ($ 000s)

 

 

 

 

 

Supermarket Branch

 

$

(220

)

$

(48

)

$

31

 

$

90

 

$

132

 

$

177

 

$

204

 

$

235

 

$

269

 

$

294

 

Traditional Branch

 

$

(362

)

$

(32

)

$

157

 

$

320

 

$

384

 

$

491

 

$

570

 

$

555

 

$

630

 

$

692

 

Capital Expenditure:  $237,000 Supermarket branch, $3 million Traditional branch
1 Includes deposits and consumer lending



39)  2005 New Branch Expansion

 

 

2005

 

 

 

(#)

 

 

 

 

 

 

 

 

 

 

 

 

 

Traditional

 

Campus

 

Supermarket

 

Total

 

Colorado

 

6

 

 

4

 

10

 

Lakeshore

 

6

 

1

 

1

 

8

 

Minnesota

 

2

 

2

 

2

 

6

 

Michigan

 

4

 

 

 

4

 

Total

 

18

 

3

 

7

 

28

 

40)  New Branch Total Deposits +80%*
Branches opened since January 1, 2000

 

 

12/00

 

12/01

 

12/02

 

12/03

 

12/04

 

6/05

 

 

 

($ millions)

 

 

 

 

 

Deposits

 

$

52

 

$

97

 

$

250

 

$

353

 

$

570

 

$

843

 

 

*  Twelve-month growth rate

41)  New Branch Total Checking Accounts +35%*
Branches opened since January 1, 2000

 

 

12/00

 

12/01

 

12/02

 

12/03

 

12/04

 

6/05

 

 

 

(000s)

 

 

 

 

 

Checking Accounts

 

12

 

42

 

83

 

142

 

206

 

239

 

 

*  Twelve-month growth rate

42)  New Branch Banking Fees & Other Revenue1 +38%*
Branches opened since January 1, 2000

 

 

2000

 

2001

 

2002

 

2003

 

2004

 

2005

 

 

 

($ millions)

 

 

 

 

 

First Quarter

 

$

 

$

1.0

 

$

2.8

 

$

5.4

 

$

9.1

 

$

13.8

 

Second Quarter

 

$

0.2

 

$

1.6

 

$

4.1

 

$

7.3

 

$

13.4

 

$

17.2

 

Third Quarter

 

$

0.5

 

$

2.0

 

$

4.4

 

$

7.9

 

$

14.0

 

$

 

Fourth Quarter

 

$

0.8

 

$

2.6

 

$

5.4

 

$

8.4

 

$

14.5

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

2

 

$

7

 

$

17

 

$

29

 

$

51

 

$

31

 

 

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

*  Twelve-month growth rate

43)  Small Business Checking Deposits +14%*

 

 

12/01

 

12/02

 

12/03

 

12/04

 

6/05

 

 

 

($ millions)

 

 

 

 

 

Small Business Checking Deposits

 

$

313

 

$

380

 

$

461

 

$

546

 

$

583

 

Average Rate:

 

0

%

0

%

0

%

0

%

0

%

# of Accounts

 

79,865

 

91,385

 

102,557

 

113,605

 

119,743

 

 

*  Twelve-month growth rate

44)  Small Business Checking Accounts

At June 30, 2005

    $583 million in 0% interest checking account deposits

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

    73,323 TCF Business Check CardsSM

    Introduced TCF Miles Plus Business Check CardSM loyalty program to business banking customers



45)  Commercial Lending +9%*

 

 

12/01

 

12/02

 

12/03

 

12/04

 

6/05

 

 

 

($ millions)

 

 

 

 

 

Commercial Real Estate

 

$

1,622.5

 

$

1,835.8

 

$

1,916.7

 

$

2,154.4

 

$

2,202.8

 

Commercial Business

 

$

422.4

 

$

440.1

 

$

427.7

 

$

424.1

 

$

448.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

2,045

 

$

2,276

 

$

2,344

 

$

2,579

 

$

2,651

 

 

*  Twelve-month growth rate

46)  Commercial Loans

At June 30, 2005

    Commercial real estate

                    25% apartment loans

                    20% office building loans

                    6% hotel loans

    Commercial business — $448 million

    Yield 5.63%

    Over-30-day delinquency rate .04%

    Net (recoveries) charge-offs: 2005 = (.19)%*, 2004 = .03% , 2003 = .09%

    Approximately 99% of all commercial loans secured

    CRE location mix: 94% Midwest, 6% Other

 

*  Annualized



47)  Corporate Governance

Gregory J. Pulles
Vice Chairman
General Counsel & Secretary

48)  Corporate Governance

    Ethical Policy Statement

    Public Disclosures

                    Enhanced Processes

                    Committee

                    Certifications

    Corporate Compliance Program

    Sarbanes-Oxley Checklists

                    SEC Corporate Governance Checklist

                    NYSE Corporate Governance Checklist

49)  Corporate Governance

    Board of Director Committees (10/13 board of directors are independent, under NYSE rules)

                    Audit
(5 independent members)

                    Shareholder Relations / De Novo Banking
(8 independent members)

                    Compensation / Nominating / Corporate Governance
(6 independent members)

    Annual Corporate Governance Self-Assessment

    Board Self-Assessments

    TCF Corporate Governance Guidelines

50)  Corporate Governance

    Executive Compensation

   Equity-based compensation is primarily restricted stock - all expensed

   Virtually no stock options

   Board reviews and approves all elements annually

   Proxy contains full disclosure

   Performance-based stock grants, tied to long-term earnings growth

— 50% of shares vest when cash EPS of $1.855 per share is achieved (a 75% increase over the base year, 1999, cash EPS of $1.06); first 50% of shares vested January 6, 2005.

— Remaining 50% of shares vest when cash EPS of $2.12 per share is achieved (a 100% increase over the base year)

— All shares not vested by year-end 2007 will be forfeited

   2005 performance-based incentive compensation, tied to earnings

— Pro-rated cash bonus based on diluted EPS

— No cash bonus at $1.86 or less diluted EPS

— Maximum cash bonus will be 200% of base salary at $2.06 diluted EPS

51)  Return to Shareholders1 +19%*

 

 

Index Value

 

Period Ending

 

6/30/1995

 

6/30/1996

 

6/30/1997

 

6/30/1998

 

6/30/1999

 

6/30/2000

 

6/30/2001

 

6/30/2002

 

6/30/2003

 

6/30/2004

 

6/30/2005

 

 

 

($)

 

 

 

 

 

TCF Financial Corporation

 

$

100.00

 

$

143.08

 

$

216.71

 

$

263.63

 

$

255.79

 

$

243.02

 

$

449.25

 

$

487.13

 

$

406.69

 

$

609.31

 

$

558.66

 

Russell 3000

 

$

100.00

 

$

126.01

 

$

164.55

 

$

211.95

 

$

254.56

 

$

278.99

 

$

240.11

 

$

198.71

 

$

200.24

 

$

241.21

 

$

260.63

 

SNL All Bank & Thrift Index

 

$

100.00

 

$

135.06

 

$

207.33

 

$

289.54

 

$

303.82

 

$

252.09

 

$

335.94

 

$

332.40

 

$

354.55

 

$

419.55

 

$

449.13

 

 

1   Assumes $100 invested June 30, 1995 with dividends reinvested

*  Annualized return since 6/30/95

Source:  SNL Securities LC

52)  Leasing & Equipment Finance

Craig R. Dahl
EVP, TCF Financial Corporation
President, TCF Equipment Finance
Chairman, Winthrop Resources

53)  Leasing and Equipment Finance +9%*

 

 

12/01

 

12/02

 

12/03

 

12/04

 

6/05