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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): July 26, 2006


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 second 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 July 26, 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 second 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 July 26, 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 July 26, 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:   July 26, 2006

3



(Back To Top)

Section 2: EX-99.1 (EX-99)

Exhibit 99.1

TCF Financial Corporation

Second Quarter 2006 Investor Presentation

The leader in convenience banking

1.)           Corporate Profile

At June 30, 2006

·                             $14.2 billion financial holding company headquartered in Minnesota

·               43rd largest¹ U.S. based bank by asset size

·               38th largest¹ based on market cap

·                             455 bank branches, 136 branches opened since January 1, 2001

·                             1,713 ATMs free to TCF customers; 1,210 off-site

·                             11th largest issuer of VISA® Classic debit cards2

·                             18th largest bank-owned equipment finance/leasing company in the U.S.3

·                             ROA4 1.82%;  ROE4 25.80%;  ROTE4,5 30.83%

·                             1,658,815 checking accounts

¹ Source:  CapitalBridge; 3/31/06

2  Source: VISA; 1Q06; ranked by sales volume

3 Source: Equipment Leasing Association; 7/06

4 Annualized

5 Excludes the impact of intangibles (see reconciliation slide in the appendix)

2.)                                  Corporate Profile

·                             Bank branches located in six states

 

   At 6/30/06   

 

   At 1/1/01   

 

Traditional

 

191

 

132

 

Supermarket

 

255

 

213

 

Campus

 

9

 

7

 

Total

 

455

 

352

 

 

 

   At 6/30/06   

 

   At 1/1/01   

 

Minnesota

 

106

 

84

 

Illinois

 

202

 

167

 

Michigan

 

62

 

56

 

Colorado

 

44

 

12

 

Wisconsin

 

35

 

32

 

Indiana

 

6

 

1

 

Total

 

455

 

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

·               Free ATMs 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 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 2,900,000 shares of common stock during the first six months of 2006 at an average cost of $25.47 per share

·                             At 6/30/06, 3.8 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

 

125.3

 

73.9

 

61.1

 

135.0

 

108

 

Total

 

$       1,094.2

 

$          581.9

 

$          459.1

 

$       1,041.0

 

95%

 

 

¹                Year-to-date

7.)                                  Consumer Home Equity Lending +16%*
($ millions)

 

12/02

 

12/03

 

12/04

 

12/05

 

6/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$          2,955

 

$          3,588

 

$          4,382

 

$          5,149

 

$          5,539

 

 

*             Twelve-month growth rate

8.)                                  Consumer Home Equity Loans

At June 30, 2006

·                             77% amortizing loans, 23% lines of credit

·                             64% are 1st mortgages, 36% are 2nd mortgages

·                             70% fixed rate and 30% variable rate (prime based)

·                             Average home value of $234,204

·                             Yield 7.45%

·                             Over-30-day delinquency rate .35%¹

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

·                             Average FICO score 720

¹                Excludes non-accrual loans

²                Annualized




 

9.)                                  Commercial Lending +11%*
($ millions)

 

12/02

 

12/03

 

12/04

 

12/05

 

6/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Business

 

$          440.1

 

$          427.7

 

$          424.1

 

$          435.2

 

$          543.3

 

Commercial Real Estate

 

1,835.8

 

1,916.7

 

2,154.4

 

2,297.5

 

2,411.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$          2,276

 

$          2,344

 

$          2,579

 

$          2,733

 

$          2,954

 

 

*             Twelve-month growth rate

10.)                           Commercial Loans

At June 30, 2006

·                             Commercial real estate

·       23% retail services

·       20% apartment loans

·       4% hotel loans

·                             Commercial business — $543 million

·                             Yield 6.77%

·                             Over-30-day delinquency rate .01%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 +21%*
($ millions)

 

12/02

 

12/03

 

12/04

 

12/05

 

6/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Leasing and Equipment Finance

 

$          1,047

 

$          1,162

 

$          1,389

 

$          1,560

 

$          1,744

 

 

¹                Includes operating leases

*             Twelve-month growth rate

 

12.)                           Leasing and Equipment Finance

At June 30, 2006

·                             37th 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

·       18% specialty vehicle

·       14% medical

·       13% technology and data processing

·       20% other

·                             Yield 7.37%

·                             YTD originations: 2006 = $530.2 million, 2005= $380.5 million

·                             Uninstalled backlog of $277.5 million; up $28 million from year-end 2005

·                             Over-30-day delinquency rate .42%³

·                             Net charge-offs: 2006 = .32%4, 2005 = 1.50%5, 2004 = .43%

¹                Source: Equipment Leasing Association; 6/06

²                Source: Equipment Leasing Association; 7/06




 

3               Excludes non-accrual loans and leases

4               Annualized

5               Net charge-offs excluding leveraged lease were .18%




 

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

 

12/02

 

12/03

 

12/04

 

12/05

 

6/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan & Lease Losses

 

$       77.0

 

$       76.6

 

$       79.9

 

$       60.4

 

$       59.2

 

Net Charge-offs (NCO)

 

$       20.0

 

$       12.9

 

$         9.5

 

$       24.5

 

$         5.8

 

 

 

 

 

 

 

 

 

 

 

 

 

As a % of Loans & Leases:

 

 

 

 

 

 

 

 

 

 

 

Allowance

 

.95%

 

.92%

 

.85%

 

.59%

 

.54%

 

NCO

 

.25%

 

.16%

 

.11%

 

.25%

¹

.11%

²

Coverage Ratio

 

3.8X

 

5.9X

 

8.4X

 

2.5X

 

5.1X

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

 

6/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Delinquencies (percent)

 

.57%

 

.47%

 

.37%

 

.43%

 

.32%

 

 

 

 

 

 

 

 

 

 

 

 

 

Delinquencies ($ millions)

 

$       46.3

 

$       38.7

 

$       34.4

 

$       43.6

 

$       34.6

 

 

1               Excludes non-accrual loans and leases

 

15.)                           Non-Performing Assets
($ millions)

 

12/02

 

12/03

 

12/04

 

12/05

 

6/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Accrual Loans and Leases

 

$       43.6

 

$       35.4

 

$       46.9

 

$       29.7

 

$       25.1

 

Real Estate Owned

 

26.6

 

33.5

 

17.2

 

17.7

 

26.0

 

Total

 

$       70.2

 

$       68.9

 

$       64.1

 

$       47.4

 

$       51.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Reserves/NAs:

 

176%

 

216%

 

170%

 

204%

 

236%

 

NPAs/Assets:

 

.58%

 

.61%

 

.52%

 

.35%

 

.36%

 

 

16.)                           Checking Accounts +7%*
(000s)

 

12/02

 

12/03

 

12/04

 

12/05

 

6/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Supermarket Branches

 

549

 

608

 

652

 

678

 

700

 

Traditional & Campus Branches

 

789

 

836

 

883

 

925

 

959

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

1,338

 

1,444

 

1,535

 

1,603

 

1,659

 

 

*             Year-to-date growth rate (annualized)

 

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

 

106.7

 

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

 

$        201

 

 

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 +9%*
($ millions)

 

12/02

 

12/03

 

12/04

 

12/05

 

6/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Supermarket Branches

 

$        695

 

$        829

 

$     1,000

 

$     1,125

 

$     1,174

 

Traditional & Campus Branches

 

1,903

 

2,146

 

2,565

 

2,815

 

2,863

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$     2,598

 

$     2,975

 

$     3,565

 

$     3,940

 

$     4,037

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rate:

 

.05%

 

.01%

 

.22%

 

.74%

 

.86%

 

 

*                    Twelve-month growth rate

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

 

6/30/06

 

6/30/05

 

Non-interest bearing checking

 

$         2,360

 

$         2,379

 

Premier checking

 

1,001

 

580

 

Other int. bearing checking

 

894

 

1,075

 

Subtotal

 

4,255

 

4,034

 

Premier savings

 

856

 

346

 

Other savings

 

1,452

 

1,697

 

Subtotal

 

2,308

 

2,043

 

Money market

 

611

 

634

 

Certificates

 

2,250

 

1,708

 

Total

 

$         9,424

 

$         8,419

 

 

 

 

 

 

 

Average Rate:

 

1.97%

 

.98%

 

 

*                    Annual growth rate

20.)                           Premier Checking & Savings Deposits + 101%*
Quarterly Average Balances
($ 000s)

 

6/30/05

 

9/30/05

 

12/31/05

 

3/31/06

 

6/30/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Premier Savings

 

$        346

 

$        437

 

$        640

 

$        780

 

$        856

 

Premier Checking

 

580

 

695

 

828

 

938

 

1,001

 

Total

 

$        926

 

$     1,132

 

$     1,468

 

$     1,718

 

$     1,857

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rate:

 

2.21%

 

2.87%

 

3.27%

 

3.38%

 

3.57%

 

1 month LIBOR spread

 

(.90

)

(.73

)

(.90

)

(1.23

)

(1.52

)

 

*                    Twelve-month growth rate

21.)                           Card Revenue +18%*
($ 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

 

22.9

 

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

 

$       44.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Volume:

 

$     3,216

 

$     3,899

 

$     4,735

 

$     5,673

 

$     3,157

¹

 

 

 

 

 

 

 

 

 

 

 

 

Avg. 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

·                             11th largest issuer of VISA® Classic debit cards¹

·                             15th largest issuer of VISA® Commercial debit cards¹

·                             20th largest overall issuer of VISA® cards¹

·                             17% increase in sales volume²

·                             Number of active accounts up 44,150, or 6%², to 805,382

·                             16.6 transactions per month on active cards, up 9%²

1                      Source: VISA; 1Q06; ranked by sales volume

2                      2Q06 vs. 2Q05

23.)                           Small Business Checking Deposits
($ millions)

 

12/02

 

12/03

 

12/04

 

12/05

 

6/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Small Business Checking Deposits

 

$        380

 

$        461

 

$        546

 

$        607

 

$        617

 

 

 

 

 

 

 

 

 

 

 

 

 

# of Accounts

 

91,385

 

102,557

 

113,605

 

122,956

 

130,314

 

 

 

 

 

 

 

 

 

 

 

 

 

 

24.)                           Small Business Services and Products

At June 30, 2006

 

·                             $617 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

·                             86,440 TCF Business Check CardsSM

·                             Introduced TCF Miles Plus Business Check Card SM loyalty program in April 2005

·                             TCF Personal Pay Day® - employee benefit package (checking, savings, loan discounts, etc.) through participating businesses

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

 

12/01

 

12/02

 

12/03

 

12/04

 

12/05

 

6/06

 

12/06
Projected

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supermarket Branches

 

20

 

35

 

40

 

51

 

58

 

61

 

64

 

Traditional and Campus Branches

 

5

 

17

 

31

 

50

 

71

 

75

 

89

 

Total

 

25

 

52

 

71

 

101

 

129

 

136

 

153

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

# of Branches Opened

 

27

 

27

 

19

 

30

 

28

 

7

 

24

 

Percent of Total

 

7%

 

13%

 

18%

 

23%

 

28%

 

30%

 

32%

 

 




 

26.)                           New Traditional Branch Model - Net Income
($ 000s)

 

Year of Existence

 

 

 

1

 

2

 

3

 

4

 

5

 

6

 

7

 

8

 

9

 

10

 

Net Income1

 

$(386

)

$(103

)

$    (5

)

$ 182

 

$ 237

 

$ 355

 

$ 417

 

$ 450

 

$ 556

 

$645

 

 

Traditional branch capital expenditure $3.5 million

 

1                      Includes deposits and consumer lending




 

27.)                           New Branch Total Deposits +79%*
Branches opened since January 1, 2001
($ millions)

 

12/01

 

12/02

 

12/03

 

12/04

 

12/05

 

6/06

 

Deposits

 

$

24

 

$

142

 

$

238

 

$

442

 

$

980

 

$

1,246

 

 

*                    Twelve-month growth rate

28.)                           New Branch Total Checking Accounts +35%*
Branches opened since January 1, 2001
(000s)

 

12/01

 

12/02

 

12/03

 

12/04

 

12/05

 

6/06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking Accounts

 

29

 

60

 

103

 

158

 

214

 

252

 

 

*                    Twelve-month growth rate

 

29.)                           New Branch Banking Fees & Other Revenue¹ +38%*
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

 

18.6

 

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

 

$

34.0

 

 

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 +46%*
Branches opened since January 1, 2001
($ millions)

 

12/01

 

12/02

 

12/03

 

12/04

 

12/05

 

6/06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Loans

 

$

9

 

$

62

 

$

156

 

$

305

 

$

459

 

$

553

 

 

*                    Twelve-month growth rate

 

31.)                           Campus Banking

At June 30, 2006

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

·                   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.

·                   94,955 total checking accounts

·                   $166.5 million in total deposits

32.)                           New Products and Services

·                   TCF Visa® Gift Card

·                   Merchant Gift Cards

·                   TCF MILES PLUS SM Card Loyalty Programs

·       Premier (Retail)

·       Small Business

·                   TCF Check CashingSM and Money Transfers

·                   Electronic Statement Delivery




 

·                   TCF Express Check Conversion

·                   TCF Express Remote Deposit

·                   Medical Equipment Leasing




 

33.)                           Financial Highlights

34.)                           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

 

$

.46

²

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend Payout Ratio:

 

30%

 

28%

 

35%

 

36%

 

35%

 

37%

 

37%

 

43%

 

40%

 

43%

 

48%

 

 

10-year compounded annual growth rate of 18% is the 5th highest among the 50 largest banks in the country¹

 

¹                       Source:  CapitalBridge

²                       Year-to-date




 

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

 

Year-to-Date

 

 

 

 

 

2006

 

2005

 

Change

 

Net Interest Income

 

$

266.6

 

$

260.3

 

2.4%

 

Fees & Other Revenue:

 

 

 

 

 

 

 

Banking

 

201.1

 

188.2

 

6.9

 

Other

 

40.0

 

31.8

 

25.7

 

Total Fees and Other Revenue

 

241.1

 

220.0

 

9.6

 

Gains on Sales of Securities

 

-

 

9.7

 

(100.0)

 

Total Non-Interest Income

 

241.1

 

229.7

 

5.0

 

Total Revenue

 

507.7

 

490.0

 

3.6

 

Provision for Credit Losses

 

4.6

 

(2.0

)

N.M.

 

Non-Interest Expense

 

322.0

 

298.2

 

8.0

 

Net Income

 

125.3

 

134.1

 

(6.6)

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

.96

 

$

1.00

 

 

 

ROA1

 

1.82%

 

2.13%

 

 

 

ROE1

 

25.80%

 

28.74%

 

 

 

ROTE1, 2

 

30.83%

 

34.66%

 

 

 

 

1                      Annualized

2                      Excludes the impact of intangibles (see reconciliation slide in Appendix)

N.M.  Not Meaningful

 

36.)                           Significant Financial Items
($000s)

 

 

Year-to-date

 

 

 

 

 

2006

 

2005

 

Change

 

Mortgage-backed Securities Gains

 

$

 

$

9,676

 

$

(9,676

)

Building Sales

 

2,928

 

6,193

 

(3,265

)

Sale of Mortgage Servicing Rights

 

1,601

 

 

1,601

 

Total Asset Sale Gains

 

4,529

 

15,869

 

(11,340

)

 

 

 

 

 

 

 

 

Commercial Loan Recovery

 

 

3,322

 

(3,322

)

Total, pre-tax

 

$

4,529

 

$

19,191

 

$

(14,662

)

 

 

 

 

 

 

 

 

Favorable Tax Adjustments

 

$

4,144

 

$

5,201

 

$

(1,057

)

 

 

 

 

 

 

 

 

Total, after-tax

 

$

7,173

 

$

17,963

 

$

(10,790

)

 

 

 

 

 

 

 

 

Impact on Diluted EPS

 

$

0.05

 

$

0.13

 

$

(0.08

)

 

 

 

 

 

 

 

 

 

 

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

 

 

 

YTD 2006

 

 

 

 

 

Balance

 

Net Income

 

%

 

Commercial Lending

 

$

2,839

 

$

12,040

 

10%

 

Consumer Lending

 

5,349

 

24,093

 

19

 

Leasing and Equipment Finance

 

1,579

 

17,256

 

14

 

Total Power Assets®

 

$

9,767

 

53,389

 

43

 

 

 

 

 

 

 

 

 

Traditional and Campus Branches (200)

 

$

7,268

 

41,968

 

33

 

Supermarket Branches (255)

 

2,030

 

18,141

 

14

 

Total Power Liabilities®

 

$

9,298

 

60,109

 

47

 

Total Power Assets & Liabilities

 

 

 

113,498

 

90

 

Equity and Other

 

 

 

11,785

 

10

 

Net Income

 

 

 

$

125,283

 

100%

 

 




 

38.)                           Return to Stockholders¹ + 18%*

 

 

 

SNL All

 

 

 

Period Ending

 

 

 

TCF

 

Bank & Thrift

 

S&P 500

 

6/86

 

$

100.00

 

$

100.00

 

$

100.00

 

6/87

 

$

85.05

 

$

110.34

 

$

128.15

 

6/88

 

$

76.64

 

$

107.02

 

$

119.30

 

6/89

 

$

105.59

 

$

130.55

 

$

143.82

 

6/90

 

$

76.26

 

$

119.91

 

$

167.53

 

6/91

 

$

117.56

 

$

138.76

 

$

179.92

 

6/92

 

$

225.27

 

$

203.06

 

$

204.05

 

6/93

 

$

295.36

 

$

244.55

 

$

231.86

 

6/94

 

$

304.72

 

$

254.81

 

$

235.12

 

6/95

 

$

438.69

 

$

288.03

 

$

296.42

 

6/96

 

$

627.69

 

$

387.24

 

$

373.49

 

6/97

 

$

950.69

 

$

604.53

 

$

503.09

 

6/98

 

$

1,156.51

 

$

852.23

 

$

654.83

 

6/99

 

$

1,122.13

 

$

886.04

 

$

803.85

 

6/00

 

$

1,066.08

 

$

781.22

 

$

862.12

 

6/01

 

$

1,970.79

 

$

1,010.73

 

$

734.26

 

6/02

 

$

2,136.98

 

$

990.75

 

$

602.18

 

6/03

 

$

1,784.08

 

$

1,062.82

 

$

603.70

 

6/04

 

$

1,672.97

 

$

1,231.18

 

$

719.07

 

6/05

 

$

2,450.77

 

$

1,318.41

 

$

764.54

 

6/06

 

$

2,590.40

 

$

1,444.61

 

$

830.52

 

 

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

*                    Annualized return since June 18, 1986

Source:  SNL Financial, LC and S&P

 

39.)                           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.

 

40.)                           NYSE: TCB
The Leader In Convenience Banking

Stock Price Performance

(In Dollars)

 

Year Ending

 

Stock Price

 

Dividends 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

 

6/06

 

 

$

26.45

 

$

.92

*

 

*                    Annualized

 

41.)                           Appendix




 

42.)                           Risk-Based Capital
($ millions)

 

12/02

 

12/03

 

12/04

 

12/05

 

6/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Actual

 

$

851

 

$

842

 

$

959

 

$

1,050

 

$

1,138

 

Minimum Requirement

 

$

622

 

$

628

 

$

705

 

$

786

 

$

818

 

Well Capitalized Requirement

 

$

777

 

$

785

 

$

881

 

$

983

 

$

1,023

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1:

 

9.96%

 

9.75%

 

9.12%

 

8.79%

 

8.58%

 

Total:

 

10.95%

 

10.73%

 

10.88%

 

10.68%

 

11.12%

 

Excess¹:

 

$

73.6

 

$

57.4

 

$

77.4

 

$

66.8

 

$

114.8

 

 

1                      Excess over “well-capitalized” requirement

 

43.)                           Net Charge-offs by Business Line

 

 

 

 

 

 

 

 

 

YTD¹

 

 

 

2002

 

2003

 

2004

 

2005

 

2006

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

.15%

 

.10%

 

.08%

 

.11%

 

.10%

 

Commercial real estate

 

.12

 

.07

 

.02

 

-

 

.01

 

Commercial business

 

1.35

 

.18

 

.04

 

(.51

)

.14

 

Leasing and equipment finance²

 

.80

 

.69

 

.43

 

1.50

 

.32

 

Residential real estate

 

-

 

.01

 

.01

 

.01

 

.02

 

Total

 

.25

 

.16

 

.11

 

.25

 

.11

 

 

¹                       Annualized

²                       NCO’s excluding leveraged lease were .18% for 2005




 

44.)                           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

 

$

.96

 

 

¹                       Year-to-date




 

45.)                           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

 

67.1

 

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

 

$

125

 

 

¹                       Year-to-date

 

46.)                           Net Interest Income
($ millions)

 

2002

 

2003

 

2004

 

2005

 

2006

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

124.5

 

$

122.4

 

$

118.4

 

$

129.1

 

$

131.2

 

Second Quarter

 

124.3

 

119.8

 

122.4

 

131.3

 

135.4

 

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

 

$

267

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Margin:

 

4.71%

 

4.54%

 

4.54%

 

4.46%

 

4.23%

¹

 

¹                       Year-to-date (annualized)

 




 

47.)                           Reconciliation of GAAP to Non-GAAP Measures¹
($ 000s)

 

Year-to-date

 

 

 

2006

 

2005

 

 

 

 

 

 

 

Computation of Return on Equity (ROE):

 

 

 

 

 

Net income, as reported

 

$

125,283

 

$

134,106

 

Average stockholders’ equity, as reported

 

$

971,051

 

$

933,286

 

 

 

 

 

 

 

Return on equity

 

25.80%

 

28.74%

 

 

 

 

 

 

 

Computation of Return on Tangible Equity (ROTE):

 

 

 

 

 

Net income

 

$

125,283

 

$

134,106

 

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

 

529

 

536

 

Net income, adjusted

 

$

125,812

 

$

134,642

 

 

 

 

 

 

 

Average stockholders’ equity

 

$

971,051

 

$

933,286

 

Average goodwill

 

152,599

 

152,599

 

Average deposit base intangible

 

2,173

 

3,826

 

Average tangible equity

 

$

816,279

 

$

776,861

 

 

 

 

 

 

 

Return on tangible equity (ROTE)

 

30.83%

 

34.66%

 

 

¹                       In contrast to GAAP-basis measures, ROTE excludes the after-tax effect of goodwill and deposit base intangible assets both in the income statement and balance sheet.  This allows management to review core operating results and core capital position of the Company.  This is consistent with the treatment by bank regulatory agencies which exclude goodwill and deposit base intangible assets from their calculation of risk-based capital.




 

Glossary of Terms

 

Coverage Ratio

 

Period-end allowance for loan and lease losses as a multiple of annualized net charge-offs.

 

Earnings per Share

 

Net income available to common shareholders divided by weighted-average common and common equivalent shares outstanding during the period (diluted EPS).

 

Fees and Other Revenue

 

Non-interest income excluding title insurance revenues (a business sold in 1999) and gains and losses on sales of securities, loan servicing and businesses.

 

Net Interest Margin

 

Annualized net interest income (before provision for credit losses) divided by average interest-earning assets for the period.

 

Power Assets®

 

Higher-yielding consumer, commercial real estate, commercial business, and leasing and equipment finance loans and leases.

 

Power Liabilities®

 

Checking, savings, money market and certificates of deposit.

 

Return on Average Assets (ROA)

 

Annualized net income divided by average total assets for the period.

 

Return on Average Common Equity (ROE)

 

Annualized net income divided by average common stockholders’ equity for the period.

 

Return on Average Tangible Common Equity (ROTE)

 

Annualized net income (excluding the after-tax effect of goodwill and deposit base intangible assets amortization) divided by average tangible common stockholders’ equity for the period.

 

Tangible Common Stockholders’ Equity

 

Common stockholders’ equity less goodwill and deposit base intangible assets.



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