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Section 1: 8-K (CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES)

 

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 24, 2006

 


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 first quarter of 2006 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 supersede investor presentation materials previously furnished as an exhibit to Current Reports on Form 8-K.  These materials are dated April 24, 2006, 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 2006 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 supersede investor presentation materials previously furnished as an exhibit to Current Reports on Form 8-K.  These materials are dated April 24, 2006, 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.

 

 

2



 

Item 9.01    Financial Statements and Exhibits.

 

(c)          Exhibits.

 

 

Exhibit No.

 

Description

 

 

 

 

 

 

99.1

 

Investor Presentation of TCF Financial Corporation,

 

 

Dated April 24, 2006

 

 

 

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/ Lynn A. Nagorske

 

Lynn A. Nagorske,

Chief Executive Officer and Director

 

 

 

 

 

/s/ Neil W. Brown

 

Neil W. Brown, 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 24, 2006

 

 

3


 

(Back To Top)

Section 2: EX-99.1 (EX-99)

Exhibit 99.1

 

TCF Financial Corporation

First Quarter 2006 Investor Presentation

The leader in convenience banking

 

1.)          Corporate Profile

 

                        At March 31, 2006

 

                                          $13.8 billion financial holding company headquartered in Minnesota

 

                                          43rd largest1 bank in the U.S. based on asset size

                                          36th largest1 based on market cap

 

                                          452 bank branches, 130 branches opened since January 1, 2001

 

                                          1,723 ATMs free to TCF customers; 1,222 off-site

 

                                          10th largest issuer of VISA® Classic debit cards2

 

                                          ROA 1.71%;  ROE 23.82%;  ROTE3 28.44%

 

                                          1,629,095 checking accounts

 

1        Source: CapitalBridge; 12/31/05

2        Source: VISA; 4Q05; ranked by sales volume

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

 

2.)          Corporate Profile

 

                                          Bank branches located in six states

 

 

 

 

At 3/31/06

 

At 1/1/01

Traditional

 

188

 

132

Supermarket

 

255

 

213

Campus

 

9

 

7

Total

 

452

 

352

 

 

 

 

 

 

 

At 3/31/06

 

At 1/1/01

Minnesota

 

105

 

84

Illinois

 

202

 

167

Michigan

 

62

 

56

Colorado

 

42

 

12

Wisconsin

 

35

 

32

Indiana

 

6

 

1

Total

 

452

 

352

 

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, supermarket and campus branches

                                          1,723 ATMs free to TCF customers

                                          Debit cards

                                          Gift cards

                                          Phone banking

                                          TCF Totally Free OnlineSM banking

 

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

 

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

 

5.)          Share Repurchase Program

 

                                          Repurchased 2,400,000 shares of common stock during the first quarter of 2006 at an average cost of $25.27 per share

 

                                          At 3/31/06, 4.3 million shares remain available to purchase under board authorizations

 

6.)          Return of Net Income to Stockholders

                        ($ millions)

 

 

 

Net

 

Stock

 

Dividends

 

 

 

% of Net

 

 

 

Income

 

Repurchase

 

Paid

 

Total

 

Income

 

 

 

 

 

 

 

 

 

 

 

 

 

2002

 

$

232.9

 

$

148.0

 

$

86.5

 

$

234.5

 

101

%

2003

 

215.9

 

150.4

 

93.0

 

243.4

 

113

 

2004

 

255.0

 

116.1

 

104.0

 

220.1

 

86

 

2005

 

265.1

 

93.5

 

114.5

 

208.0

 

78

 

20061

 

58.2

 

60.7

 

30.8

 

91.5

 

157

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1,027.1

 

$

568.7

 

$

428.8

 

$

997.5

 

97

%

 

1   Year-to-date

 

7.)          Consumer Home Equity Lending +17%*

                        ($ millions)

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

3/06

 

Total

 

$

2,955

 

$

3,588

 

$

4,382

 

$

5,149

 

$

5,331

 

 

*

TweTwelve-month growth rate

 

8.)          Consumer Home Equity Loans

 

At March 31, 2006

 

                                          75% amortizing loans, 25% lines of credit

 

                                          33% variable rate (prime based) and 67% fixed rate

 

                                          65% are 1st mortgages, 35% are 2nd mortgages

 

                                          Average home value of $216,491

 

                                          Yield 7.30%

 

                                          Over-30-day delinquency rate .36%1

 

                                          Net charge-offs: 2006 = .11%2, 2005 = .10%, 2004 = .09%

 

                                          Average FICO score 720

 

1   Excludes non-accrual loans

2   Annualized

 



 

9.)          Commercial Lending +10%*
($ millions)

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

3/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Business

 

$

440.1

 

$

427.7

 

$

424.1

 

$

435.2

 

$

470.1

 

Commercial Real Estate

 

$

1,835.8

 

$

1,916.7

 

$

2,154.4

 

$

2,297.5

 

$

2,394.7

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

2,276

 

$

2,344

 

$

2,579

 

$

2,733

 

$

2,865

 

 

*

Twelve-month growth rate

 

10.)   Commercial Loans

 

                        At March 31, 2006

 

                                          Commercial real estate

                                          21% apartment loans

                                          18% office building loans

                                          5% hotel loans

 

                                          Commercial business — $470 million

 

                                          Yield 6.52%

 

                                          Over-30-day delinquency rate .11%1

 

                                          Net charge-offs/(recoveries): 2006 = .03%2, 2005 = (.08)% , 2004 = .03%

 

                                          Approximately 99% of all commercial loans secured

 

                                          CRE location mix: 94% Midwest, 6% Other

 

1   Excludes non-accrual loans

2   Annualized

 

11.)   Leasing and Equipment Finance1 +15%*

                        ($ millions)

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

3/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Leasing and Equipment Finance

 

$

1,047

 

$

1,162

 

$

1,389

 

$

1,560

 

$

1,637

 

 

1   Includes operating leases

*  Twelve-month growth rate

 

12.)   Leasing and Equipment Finance

 

                        At March 31, 2006

 

                                          38th largest equipment finance/leasing company in the U.S.1

 

                                          18th largest bank-owned equipment finance/leasing company in the U.S.2

 

                                          Equipment type

                                          35% manufacturing and construction

                                          17% specialty vehicle

                                          14% technology and data processing

                                          13% medical

                                          21% other

 

                                          Yield 7.18%

 

                                          Originations of $250.6 million

 

                                          Uninstalled backlog of $294.1 million; up $45 million from year-end 2005

 

                                          Over-30-day delinquency rate .39%3

 

                                          Net charge-offs: 2006 = .22%4, 2005 = .18%5, 2004 = .43%

 

1   Source: Equipment Leasing Association; 6/05

2   Source: Equipment Leasing Association; 7/05

3   Excludes non-accrual loans and leases

4   Annualized

5   Excludes leveraged lease charge-off of $18.8 million

 



 

13.)   Allowance for Loan & Lease Losses
                        ($ millions)

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

3/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan & Lease Losses

 

$

77.0

 

$

76.6

 

$

79.9

 

$

60.4

 

$

59.4

 

Net Charge-offs (NCO)

 

$

20.0

 

$

12.9

 

$

9.5

 

$

24.5

 

$

2.5

 

 

 

 

 

 

 

 

 

 

 

 

 

As a % of Loans & Leases:

 

 

 

 

 

 

 

 

 

 

 

Allowance

 

.95

%

.92

%

.85

%

.59

%

.56

%

NCO

 

.25

%

.16

%

.11

%

.25

%1

.10

%2

Coverage Ratio

 

3.8

X

5.9

X

8.4

X

2.5

X

5.9

X 2

 

1   Net charge-offs excluding leveraged lease were .06%

2   Annualized

 

14.)   Delinquencies (Over 30-Day)1

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

3/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Delinquencies (percent)

 

.57

%

.47

%

.37

%

.43

%

.35

%

 

 

 

 

 

 

 

 

 

 

 

 

Delinquencies ($ millions)

 

$

46.3

 

$

38.7

 

$

34.4

 

$

43.6

 

$

37.0

 

 

1   Excludes non-accrual loans and leases

 

15.)   Non-Performing Assets
                        ($ millions)

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

3/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Accrual Loans and Leases

 

$

43.6

 

$

35.4

 

$

46.9

 

$

29.7

 

$

30.8

 

Real Estate Owned

 

$

26.6

 

$

33.5

 

$

17.2

 

$

17.7

 

$

20.7

 

Total

 

$

70.2

 

$

68.9

 

$

64.1

 

$

47.4

 

$

51.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reserves/NAs:

 

176

%

216

%

170

%

204

%

193

%

NPAs/Assets:

 

.58

%

.61

%

.52

%

.35

%

.37

%

 

16.)   Checking Accounts +5%*
                        (000s)

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

3/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Supermarket Branches

 

549

 

608

 

652

 

678

 

690

 

Traditional & Campus Branches

 

789

 

836

 

883

 

925

 

939

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

1,338

 

1,444

 

1,535

 

1,603

 

1,629

 

 

*  Twelve-month growth rate

 

17.)   Banking Fees and Other Revenue1 +7%*
                        ($ millions)

 

 

 

2002

 

2003

 

2004

 

2005

 

2006

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

72.7

 

$

82.1

 

$

87.7

 

$

88.2

 

$

94.4

 

Second Quarter

 

$

84.7

 

$

92.8

 

$

104.5

 

$

100.1

 

$

 

Third Quarter

 

$

87.7

 

$

94.3

 

$

103.0

 

$

104.7

 

$

 

Fourth Quarter

 

$

91.3

 

$

90.8

 

$

99.1

 

$

101.1

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

336

 

$

360

 

$

394

 

$

394

 

$

94

 

 

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

*  Year-to-date growth rate (‘06 vs. ‘05)

 



 

18.)   Retail Checking Deposits +13%*
                        ($ millions)

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

3/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Supermarket Branches

 

$

695

 

$

829

 

$

1,000

 

$

1,125

 

$

1,203

 

Traditional & Campus Branches

 

$

1,903

 

$

2,146

 

$

2,565

 

$

2,815

 

$

2,943

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

2,598

 

$

2,975

 

$

3,565

 

$

3,940

 

$

4,146

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rate:

 

.05

%

.01

%

.22

%

.74

%

.77

%

 

*  Twelve-month growth rate

 

19.)   Retail Deposits +12%*
                        Quarterly Average Balances
                        ($ millions)

 

 

 

3/31/06

 

3/31/05

 

Non-interest bearing checking

 

$

2,083

 

$

2,061

 

Premier checking

 

920

 

453

 

Other int. bearing checking

 

891

 

1,053

 

Subtotal

 

3,894

 

3,567

 

Premier savings

 

764

 

278

 

Other savings

 

1,429

 

1,585

 

Subtotal

 

2,193

 

1,863

 

Money Market

 

521

 

575

 

Certificates

 

1,852

 

1,523

 

Total

 

$

8,460

 

$

7,528

 

 

 

 

 

 

 

Average Rate:

 

1.74

%

.81

%

 

*  Annual growth rate

 

20.)   Premier Checking & Savings Deposits + 132%*
                        Quarterly Average Balances
                        ($000s)

 

 

 

3/31/05

 

6/30/05

 

9/30/05

 

12/31/05

 

3/31/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Premier Savings

 

$

282

 

$

346

 

$

437

 

$

640

 

$

780

 

Premier Checking

 

$

459

 

$

580

 

$

695

 

$

828

 

$

938

 

Total

 

$

741

 

$

926

 

$

1,132

 

$

1,468

 

$

1,718

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rate:

 

2.06

%

2.21

%

2.87

%

3.27

%

3.38

%

 

*  Twelve-month growth rate

 

21.)   Card Revenue +21%*
                        ($ millions)

 

 

 

2002

 

2003

 

2004

 

2005

 

2006

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

10.2

 

$

13.2

 

$

13.5

 

$

17.6

 

$

21.3

 

Second Quarter

 

$

11.8

 

$

14.8

 

$

16.0

 

$

19.8

 

$

 

Third Quarter

 

$

12.1

 

$

12.9

 

$

16.3

 

$

21.0

 

$

 

Fourth Quarter

 

$

13.1

 

$

12.1

 

$

17.7

 

$

21.4

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

47.2

 

$

53.0

 

$

63.5

 

$

79.8

 

$

21.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Volume:

 

$

3,216

 

$

3,899

 

$

4,735

 

$

5,673

 

$

1,516

1 

 

 

 

 

 

 

 

 

 

 

 

 

Average Off-line Interchange Rate:

 

1.55

%

1.43

%

1.40

%

1.43

%

1.42

%1

 

*  Year-to-date growth rate (‘06 vs. ‘05)

1   Year-to-date

 



 

22.)   Card Revenue

 

                                          10th largest issuer of VISA® Classic debit cards1

 

                                          15th largest issuer of VISA® Commercial debit cards1

 

                                          21st largest overall issuer of VISA® cards1

 

                                          18% increase in sales volume2

 

                                          Number of active accounts up 45,077, or 6%2, to 786,217

 

                                          15.5 transactions per month on active cards, up 10 %2

 

1   Source: VISA; 4Q05; ranked by sales volume

2   1Q06 vs. 1Q05

 

23.)   Small Business Checking Deposits
                        ($ millions)

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

3/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Small Business Checking Deposits

 

$

380

 

$

461

 

$

546

 

$

607

 

$

600

 

 

 

 

 

 

 

 

 

 

 

 

 

# of Accounts

 

91,385

 

102,557

 

113,605

 

122,956

 

126,537

 

 

24.)   Small Business Services and Products

 

                        At March 31, 2006

 

                                          $600 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

 

                                          82,473 TCF Business Check CardsSM

 

                                          Introduced TCF Miles Plus Business Check CardSM loyalty program in April 2005

 

25.)   Total New Branches
                        Branches opened since January 1, 2001

 

 

 

Traditional

 

 

 

 

 

# of Branches

 

Percent

 

 

 

and Campus

 

Supermarket

 

Total

 

Opened

 

of Total

 

 

 

 

 

 

 

 

 

 

 

 

 

12/01

 

5

 

20

 

25

 

27

 

7

%

12/02

 

17

 

35

 

52

 

27

 

13

%

12/03

 

31

 

40

 

71

 

19

 

18

%

12/04

 

50

 

51

 

101

 

30

 

23

%

12/05

 

71

 

58

 

129

 

28

 

28

%

12/06 Forecast

 

89

 

65

 

154

 

25

 

32

%

 

26.)   New Traditional Branch Model - Net Income

                        ($ 000s)

 

 

 

Year of Existence

 

 

 

1

 

2

 

3

 

4

 

5

 

6

 

7

 

8

 

9

 

10

 

Net Income1

 

$

(362

)

$

(32

)

$

157

 

$

320

 

$

384

 

$

491

 

$

570

 

$

555

 

$

630

 

$

692

 

 

Traditional branch capital expenditure $3 million

 

1   Includes deposits and consumer lending

 

27.)   New Branch Total Deposits +81%*
                        Branches opened since January 1, 2001
                        ($ millions)

 

 

 

12/01

 

12/02

 

12/03

 

12/04

 

12/05

 

3/06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

24

 

$

142

 

$

238

 

$

442

 

$

980

 

$

1,119

 

 

*  Twelve-month growth rate

 

28.)   New Branch Total Checking Accounts +36%*
                        Branches opened since January 1, 2001
                        (000s)

 

 

 

12/01

 

12/02

 

12/03

 

12/04

 

12/05

 

3/06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking Accounts

 

29

 

60

 

103

 

158

 

214

 

233

 

 

*  Twelve-month growth rate

 

29.)   New Branch Banking Fees & Other Revenue1 +41%*

                        Branches opened since January 1, 2001

                        ($ millions)

 

 

 

2001

 

2002

 

2003

 

2004

 

2005

 

2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

 

$

1.1

 

$

3.1

 

$

6.3

 

$

10.9

 

$

15.4

 

Second Quarter

 

$

0.1

 

$

1.7

 

$

4.2

 

$

9.9

 

$

13.8

 

$

 

Third Quarter

 

$

0.3

 

$

2.1

 

$

4.9

 

$

10.6

 

$

15.0

 

$

 

Fourth Quarter

 

$

0.8

 

$

2.9

 

$

5.5

 

$

11.2

 

$

15.3

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1.2

 

$

7.8

 

$

17.7

 

$

38.0

 

$

55.0

 

$

15.4

 

 

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

*  Twelve-month growth rate

 

30.)   New Branch Consumer Loans +50%*
                        Branches opened since January 1, 2001
                        ($ millions)

 

 

 

12/01

 

12/02

 

12/03

 

12/04

 

12/05

 

3/06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Loans

 

$

9

 

$

62

 

$

156

 

$

305

 

$

459

 

$

507

 

 

*  Twelve-month growth rate

 

31.)   Campus Banking

 

                        At March 31, 2006

 

                                          Alliances with the University of Minnesota and University of Michigan plus nine other colleges, including the latest agreements with DePaul University in Chicago and Milwaukee Area Technical College

 

                                          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.

 

                                          89,357 total checking accounts

 

                                          $171.3 million in total deposits

 

32.)   New Products and Services

 

                                          TCF MILES PLUSSM Card Loyalty Programs

                          Premier (Retail)

                          Small Business

 

                                          TCF Visa® Gift Card

 

                                          Merchant Gift Cards

 

                                          TCF Check CashingSM and Money Transfers

 

                                          Electronic Statement Delivery

 

                                          TCF Express Check Conversion

 

                                          Medical Equipment Leasing

 

33.)   Financial Highlights

 



 

34.)   Diluted EPS

 

 

 

1996

 

1997

 

1998

 

1999

 

2000

 

2001

 

2002

 

2003

 

2004

 

2005

 

20061

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

.60

 

$

.84

 

$

.88

 

$

1.00

 

$

1.17

 

$

1.35

 

$

1.58

 

$

1.53

 

$

1.86

 

$

2.00

 

$

.45

 

 

1   Year-to-date

 

35.)   Dividend History

 

 

 

1996

 

1997

 

1998

 

1999

 

2000

 

2001

 

2002

 

2003

 

2004

 

2005

 

2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends Paid

 

$

.18

 

$

.23

 

$

.31

 

$

.36

 

$

.41

 

$

.50

 

$

.58

 

$

.65

 

$

.75

 

$

.85

 

$

.23

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend Payout Ratio:

 

30

%

28

%

35

%

36

%

35

%

37

%

37

%

43

%

40

%

43

%

51

%

 

10-year compounded annual growth rate of 19% is the 5th highest among the 50 largest banks in the country1

 

1   Source:  CapitalBridge

2   Year-to-date

 

36.)   Net Income
                        ($ millions)

 

 

 

2002

 

2003

 

2004

 

2005

 

20061

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

56.3

 

$

60.1

 

$

60.7

 

$

63.5

 

$

58.2

 

Second Quarter

 

$

58.0

 

$

60.3

 

$

65.2

 

$

70.6

 

$

 

Third Quarter

 

$

58.9

 

$

36.0

 

$

61.7

 

$

65.5

 

$

 

Fourth Quarter

 

$

59.8

 

$

59.5

 

$

67.4

 

$

65.5

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

233

 

$

216

 

$

255

 

$

265

 

$

58

 

 

1   Year-to-date

 

37.)   First Quarter Significant Items
                        ($ 000s)

 

 

 

2006

 

2005

 

Change

 

Mortgage-backed Securities Gains

 

$

 

$

5,239

 

$

(5,239

)

Building Sales

 

2,921

 

5,704

 

(2,783

)

Sale of Mortgage Servicing Rights (net gain)

 

1,601

 

 

1,601

 

Total Asset Sale Gains

 

4,522

 

10,943

 

(6,421

)

 

 

 

 

 

 

 

 

Commercial Loan Recovery

 

 

3,322

 

(3,322

)

Pre-tax Total

 

$

4,522

 

$

14,265

 

$

(9,743

)

 

 

 

 

 

 

 

 

After-tax Total

 

$

3,018

 

$

9,379

 

$

(6,361

)

 

 

 

 

 

 

 

 

Impact on Diluted EPS

 

$

0.02

 

$

0.07

 

$

(0.05

)

 

38.)   Net Interest Income
                        ($ millions)

 

 

 

2002

 

2003

 

2004

 

2005

 

20061

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

124.5

 

$

122.4

 

$

118.4

 

$

129.1

 

$

131.2

 

Second Quarter

 

$

124.3

 

$

119.8

 

$

122.4

 

$

131.3

 

$

 

Third Quarter

 

$

123.8

 

$

119.9

 

$

124.5

 

$

128.1

 

$

 

Fourth Quarter

 

$

126.6

 

$

119.1

 

$

126.5

 

$

129.3

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

499

 

$

481

 

$

492

 

$

518

 

$

131

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Margin:

 

4.71

%

4.54

%

4.54

%

4.46

%

4.25

%1

 

1   Annualized

 

39.)   Financial Highlights
                        ($ millions, except per-share data)

 

 

 

Year-to-Date

 

 

 

 

 

2006

 

2005

 

Change

 

Net Interest Income

 

$

131.2

 

$

129.1

 

1.6

%

Fees & Other Revenue:

 

 

 

 

 

 

 

Banking

 

94.4

 

88.2

 

7.0

 

Other

 

23.1

 

18.5

 

24.9

 

Total Fees and Other Revenue

 

117.5

 

106.7

 

10.1

 

Gains on Sales of Securities

 

 

5.2

 

(100.0

)

Total Non-Interest Income

 

117.5

 

112.1

 

4.8

 

Total Revenue

 

248.7

 

241.1

 

3.2

 

Provision for Credit Losses

 

1.5

 

(3.4

)

N.M.

 

Non-Interest Expense

 

159.9

 

148.0

 

8.0

 

Net Income

 

58.2

 

63.5

 

(8.3

)

 

 

 

 

 

 

 

 

Diluted EPS

 

$

.45

 

$

.47

 

 

 

ROA

 

1.71

%

2.03

%

 

 

ROE

 

23.82

%

27.18

%

 

 

ROTE1

 

28.44

%

32.79

%

 

 

 

1   Excludes the impact of intangible amortization expense (see reconciliation slide in Appendix)

N.M.  Not Meaningful.

 

40.)   Power ProfitsSM
                        Average Balance ($ millions)
                        Profit center net income ($ 000s)

 

 

 

 

 

YTD 2006

 

 

 

 

 

Balance

 

Net Income

 

%

 

Commercial Lending

 

$

2,779

 

$

5,535

 

9

%

Consumer Lending

 

5,251

 

11,763

 

20

 

Leasing and Equipment Finance

 

1,533

 

9,129

 

16

 

Total Power Assets®

 

$

9,563

 

26,427

 

45

 

 

 

 

 

 

 

 

 

Traditional and Campus Branches (197)

 

$

7,191

 

18,873

 

32

 

Supermarket Branches (255)

 

1,980

 

7,396

 

13

 

Total Power Liabilities®

 

$

9,171

 

26,269

 

45

 

Total Power Assets & Liabilities

 

 

 

52,696

 

90

 

Equity and other

 

 

 

5,526

 

10

 

Net Income

 

 

 

$

58,222

 

100

%

 

41.)   Securities Available for Sale and Residential Loans

                        Ending Balance
                        ($ millions)

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

3/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities Available for Sale

 

$

2,354

 

$

1,524

 

$

1,622

 

$

1,682

 

$

1,875

 

Residential Loans

 

1,800

 

1,213

 

1,014

 

770

 

733

 

Total

 

$

4,154

 

$

2,737

 

$

2,636

 

$

2,452

 

$

2,608

 

 

 

 

 

 

 

 

 

 

 

 

 

Yield:1

 

6.25

%

5.55

%

5.29

%

5.46

%

5.46

%

% of Total Assets

 

34.1

%

24.2

%

21.4

%

18.3

%

18.9

%

 

1   Based on historical amortized cost

 



 

42.)   Return to Stockholders1 + 18%*

 

 

 

 

 

SNL All Bank

 

 

 

Period Ending

 

 

TCF

 

& Thrift Index

 

S&P 500

 

6/86

 

$

100.00

 

$

100.00

 

$

100.00

 

3/87

 

$

114.03

 

$

116.90

 

$

122.03

 

3/88

 

$

71.02

 

$

95.55

 

$

111.85

 

3/89

 

$

83.69

 

$

116.13

 

$

132.15

 

3/90

 

$

95.30

 

$

120.40

 

$

157.62

 

3/91

 

$

118.86

 

$

127.18

 

$

180.33

 

3/92

 

$

161.09

 

$

186.01

 

$

200.24

 

3/93

 

$

278.25

 

$

250.20

 

$

230.74

 

3/94

 

$

272.25

 

$

233.05

 

$

234.14

 

3/95

 

$

395.48

 

$

254.92

 

$

270.59

 

3/96

 

$

680.57

 

$

378.21

 

$

357.45

 

3/97

 

$

758.58

 

$

505.12

 

$

428.31

 

3/98

 

$

1,323.55

 

$

834.13

 

$

633.90

 

3/99

 

$

1,042.41

 

$

829.82

 

$

750.92

 

3/00

 

$

979.34

 

$

813.11

 

$

885.64

 

3/01

 

$

1,598.12

 

$

923.93

 

$

693.66

 

3/02

 

$

2,277.21

 

$

1,022.67

 

$

695.34

 

3/03

 

$

1,778.44

 

$

874.59

 

$

523.17

 

3/04

 

$

2,334.63

 

$

1,254.24

 

$

706.90

 

3/05

 

$

2,550.07

 

$

1,261.13

 

$

754.21

 

3/06

 

$

2,499.46

 

$

1,290.98

 

$

842.65

 

 

1   Assumes $100 invested June 18, 1986 with dividends reinvested

*  Annualized return since June 18, 1986

Source:  SNL Financial, LC and S&P

 

43.)   Cautionary Statement

 

This presentation and other reports issued by the Company, including reports filed with the SEC, may contain “forward-looking” statements that deal with future results, plans or performance.  In addition, TCF’s management may make such statements orally to the media, or to securities analysts, investors or others.  Forward-looking statements deal with matters that do not relate strictly to historical facts. TCF’s future results may differ materially from historical performance and  forward-looking statements about TCF’s expected financial results or other plans and are subject to a number of risks and uncertainties.  These include but are not limited to possible legislative changes and adverse economic, business and competitive developments such as shrinking interest margins; deposit outflows; an inability to increase the number of checking accounts and the possibility that deposit account losses (fraudulent checks,etc.) may increase; reduced demand for financial services and loan and lease products; adverse developments affecting TCF’s supermarket banking relationships or any of the supermarket chains in which TCF maintains supermarket branches;  changes in accounting standards or interpretations of existing standards; monetary, fiscal or tax policies of the federal or state governments; adverse findings in tax audits or regulatory examinations; changes in credit and other risks posed by TCF’s loan, lease and investment portfolios, including declines in commercial or residential real estate values; imposition of vicarious liability on TCF as lessor in its leasing operations; denial of insurance coverage for claims made by TCF; technological, computer-related or operational difficulties or loss or theft of information; adverse changes in securities markets; and results of litigation, including reductions in card revenues resulting from litigation brought by various merchants or merchant organizations against Visa; or other significant uncertainties.  Investors should consult TCF’s Annual Report on Form 10-K, and Forms 10-Q and 8-K for additional important information about the Company.

 

44.)   NYSE: TCB
                        The Leader In Convenience Banking

 

Stock Price Performance

 

 

 

 

 

(In Dollars)

 

 

 

 

 

 

Year-Ending

 

Stock Price

 

Dividend Paid

 

12/95

 

$

8.28

 

$

.15

 

12/96

 

$

10.88

 

$

.18

 

12/97

 

$

16.97

 

$

.23

 

12/98

 

$

12.09

 

$

.31

 

12/99

 

$

12.44

 

$

.36

 

12/00

 

$

22.28

 

$

.41

 

12/01

 

$

23.99

 

$

.50

 

12/02

 

$

21.85

 

$

.58

 

12/03

 

$

25.68

 

$

.65

 

12/04

 

$

32.14

 

$

.75

 

12/05

 

$

27.14

 

$

.85

 

3/06

 

$

25.75

 

$

.92

*

 

*  Annualized

 

45.)   Appendix

 

46.)   Risk-Based Capital
                        ($ millions)

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

3/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Actual

 

$

851

 

$

842

 

$

959

 

$

1,050

 

$

1,111

 

Minimum Requirement

 

$

622

 

$

628

 

$

705

 

$

786

 

$

814

 

Well Capitalized Requirement

 

$

777

 

$

785

 

$

881

 

$

983

 

$

1,018

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1:

 

9.96

%

9.75

%

9.12

%

8.79

%

8.36

%

Total:

 

10.95

%

10.73

%

10.88

%

10.68

%

10.91

%

Excess1:

 

$

73.6

 

$

57.4

 

$

77.4

 

$

66.8

 

$

93.0

 

 

1   Excess over “well-capitalized” requirement

 

47.)   Net Charge-offs by Business Line

 

 

 

 

 

 

 

 

 

 

 

YTD1

 

 

 

2002

 

2003

 

2004

 

2005

 

2006

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

.15

%

.10

%

.08

%

.11

%

.11

%

Commercial real estate

 

.12

 

.07

 

.02

 

 

.01

 

Commercial business

 

1.35

 

.18

 

.04

 

(.51

)

.14

 

Leasing and equipment finance2

 

.80

 

.69

 

.43

 

1.50

 

.22

 

Residential real estate

 

 

.01

%

.01

 

.01

 

.02

 

Total

 

.25

 

.16

 

.11

 

.25

 

.10

 

 

1   Annualized

2   Excluding leveraged lease .18% for 2005

 

 



 

48.)   Reconciliation of GAAP to Non-GAAP Measures1

 

 

 

For the Three

 

For the Three

 

 

 

Months Ended

 

Months Ended

 

 

 

March 31, 2006

 

March 31, 2005

 

 

 

 

 

 

 

Computation of Return on Equity (ROE):

 

 

 

 

 

Net income, as reported

 

$

58,222

 

$

63,465

 

Average stockholders’ equity, as reported

 

$

977,585

 

$

934,063

 

Return on equity

 

23.82

%

27.18

%

 

 

 

 

 

 

Computation of Return on Tangible Equity (ROTE):

 

 

 

 

 

Net income

 

$

58,222

 

$

63,465

 

Amortization of deposit based intangibles, net of any related tax effect

 

 $

264

 

$

 268

 

Net income, adjusted

 

$

58,486

 

$

63,733

 

 

 

 

 

 

 

Average stockholders’ equity

 

$

977,585

 

$

934,063

 

Average goodwill

 

$

152,599

 

$

152,599

 

Average deposit base intangible

 

$

2,379

 

$

4,034

 

Average tangible equity