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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): October 25, 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:

 

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

 

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

 

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

 

o   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 third 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 October 25, 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 third 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 October 25, 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 October 25, 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:    October 25, 2006

 

3


(Back To Top)

Section 2: EX-99.1 (EX-99)

Exhibit 99.1

 

TCF Financial Corporation

Third Quarter 2006 Investor Presentation

The leader in convenience banking

 

1.)                                  Corporate Profile

 

At September 30, 2006

 

                                          $14.3 billion financial holding company headquartered in Minnesota

 

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

                                          36th largest1 based on market cap

 

                                          459 bank branches, 141 branches opened since January 1, 2001

 

                                          22nd largest branch network2

 

                                          1,720 ATMs free to TCF customers; 1,216 off-site

 

                                          11th largest issuer of VISA® Classic debit cards3

 

                                          18th largest bank-owned equipment finance/leasing company in the U.S.4

 

                                          ROA5 1.83%;  ROE5 26.04%;  ROTE5,6 31.06%

 

                                          1,673,680 checking accounts

 

1  Source:  CapitalBridge; 6/30/06

2  Source: SNL Financial, LC; 3Q06

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

4  Source: Equipment Leasing Association; 7/06

5   Annualized

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

 

2.)                                  Corporate Profile

 

                                          Bank branches located in six states

 

 

 

At 9/30/06

 

At 1/1/01

 

Traditional

 

190

 

132

 

Supermarket

 

257

 

213

 

Campus

 

12

 

7

 

Total

 

459

 

352

 

 

 

 

At 9/30/06

 

At 1/1/01

 

Minnesota

 

107

 

84

 

Illinois

 

203

 

167

 

Michigan

 

63

 

56

 

Colorado

 

44

 

12

 

Wisconsin

 

36

 

32

 

Indiana

 

6

 

1

 

Total

 

459

 

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

                                          1,720 free ATMs

                                          Free debit cards

                                          No purchase-fee 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

                                          Arizona

                                          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 3.4 million shares of common stock during the first nine months of 2006 at an average cost of $25.71 per share

 

                                          At 9/30/06, 3.3 million shares remain available to purchase under board authorizations

 

6.)                                  Return of Net Income to Stockholders

($ millions)

 

 

 

Net

 

Dividends

 

Stock

 

 

 

% of Net

 

 

 

Income

 

Paid

 

Repurchase

 

Total

 

Income

 

 

 

 

 

 

 

 

 

 

 

 

 

2002

 

$

232.9

 

$

86.5

 

$

148.0

 

$

234.5

 

101

%

2003

 

215.9

 

93.0

 

150.4

 

243.4

 

113

 

2004

 

255.0

 

104.0

 

116.1

 

220.1

 

86

 

2005

 

265.1

 

114.5

 

93.5

 

208.0

 

78

 

20061

 

191.2

 

91.3

 

87.4

 

178.7

 

93

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1,160.1

 

$

489.3

 

$

595.4

 

$

1,084.7

 

94

%

 

1                    Year-to-date

 

7.)                                  Consumer Home Equity Lending +15%*

($ millions)

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

9/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

2,955

 

$

3,588

 

$

4,382

 

$

5,149

 

$

5,739

 

 

*                 Twelve-month growth rate

 

8.)                                  Consumer Home Equity Loans

 

At September 30, 2006

 

                                          78% amortizing loans, 22% lines of credit

 

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

 

                                          73% fixed rate and 27% variable rate (prime based)

 

                                          Average home value of $236,1581

 

                                          Yield 7.45%

 

                                          Over-30-day delinquency rate .44%2

 

                                          Net charge-offs: 2006 = .10%3, 2005 = .10%, 2004 = .09%

 

                                          Average FICO score 721

 

1                    Based on most recent appraisal values known to TCF

2                    Excludes non-accrual loans

3                    Annualized

 

9.)                                  Commercial Lending +11%*

($ millions)

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

9/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Business

 

$

440.1

 

$

427.7

 

$

424.1

 

$

435.2

 

$

546.5

 

Commercial Real Estate

 

1,835.8

 

1,916.7

 

2,154.4

 

2,297.5

 

2,414.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

2,276

 

$

2,344

 

$

2,579

 

$

2,733

 

$

2,961

 

 

*                 Twelve-month growth rate

 



 

10.)                           Commercial Loans

 

At September 30, 2006

 

                                          Commercial real estate

                                          24% retail services

                                          23% apartment loans

                                          18% office buildings

 

                                          Commercial business -- $547 million

 

                                          Yield 6.88%

 

                                          Over-30-day delinquency rate .17%1

 

                                          Net charge-offs/(recoveries): 2006 = .02%2, 2005 = (.08)% , 2004 = .03%

 

                                          Approximately 98% of all commercial loans secured

 

                                          CRE location mix: 94% TCF Markets, 6% Other

 

1                    Excludes non-accrual loans

2                    Annualized

 

11.)                           Leasing and Equipment Finance1 +24%*

($ millions)

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

9/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Leasing and Equipment Finance

 

$

1,047

 

$

1,162

 

$

1,389

 

$

1,560

 

$

1,808

 

 

1                    Includes operating leases

*                 Twelve-month growth rate

 

12.)                           Leasing and Equipment Finance

 

At September 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 7.68%

 

                                          YTD originations: 2006 = $777.0 million, 2005= $574.8 million

 

                                          Uninstalled backlog of $282.1 million; up $33 million from year-end 2005

 

                                          Over-30-day delinquency rate .51%3

 

                                          Net charge-offs: 2006 = .27%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

 

9/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan & Lease Losses

 

$

77.0

 

$

76.6

 

$

79.9

 

$

60.4

 

$

59.7

 

Net Charge-offs (NCO)

 

$

20.0

 

$

12.9

 

$

9.5

 

$

24.5

 

$

8.2

 

 

 

 

 

 

 

 

 

 

 

 

 

As a % of Loans & Leases:

 

 

 

 

 

 

 

 

 

 

 

Allowance

 

.95

%

.92

%

.85

%

.59

%

.54

%

NCO

 

.25

%

.16

%

.11

%

.25

%1

.10

%2

Coverage Ratio

 

3.8

X

5.9

X

8.4

X

2.5

X

5.4

X2

 

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

2                    Annualized

 

14.)                           Delinquencies (Over 30-Day)1

(Percent)

($ millions)

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

9/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Delinquencies

 

.57

%

.47

%

.37

%

.43

%

.45

%

 

 

 

 

 

 

 

 

 

 

 

 

Delinquencies

 

$

46.3

 

$

38.7

 

$

34.4

 

$

43.6

 

$

49.7

 

 

1                    Excludes non-accrual loans and leases

 

15.)                           Non-Performing Assets

($ millions)

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

9/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Accrual Loans and Leases

 

$

43.6

 

$

35.4

 

$

46.9

 

$

29.7

 

$

27.2

 

Real Estate Owned

 

26.6

 

33.5

 

17.2

 

17.7

 

27.9

 

Total

 

$

70.2

 

$

68.9

 

$

64.1

 

$

47.4

 

$

55.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Reserves/NAs:

 

176

%

216

%

170

%

204

%

219

%

NPAs/Assets:

 

.58

%

.61

%

.52

%

.35

%

.39

%

 

16.)                           Checking Accounts +6%*

(000s)

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

9/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Supermarket Branches

 

549

 

608

 

652

 

678

 

700

 

Traditional & Campus Branches

 

789

 

836

 

883

 

925

 

974

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

1,338

 

1,444

 

1,535

 

1,603

 

1,674

 

 

*                 Year-to-date growth rate (annualized)

 

17.)                           Banking Fees and Other Revenue1 +6%*

($ 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

 

108.3

 

Fourth Quarter

 

91.3

 

90.8

 

99.1

 

101.1

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

336

 

$

360

 

$

394

 

$

394

 

$

309

 

 

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 +3%*

($ millions)

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

9/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Supermarket Branches

 

$

695

 

$

829

 

$

1,000

 

$

1,125

 

$

1,145

 

Traditional & Campus Branches

 

1,903

 

2,146

 

2,565

 

2,815

 

2,850

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

2,598

 

$

2,975

 

$

3,565

 

$

3,940

 

$

3,995

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rate:

 

.05

%

.01

%

.22

%

.74

%

.87

%

 

*                 Twelve-month growth rate

 

19.)                           Total Deposits +11%*

Quarterly Average Balances

($ millions)

 

 

 

9/30/06

 

9/30/05

 

Non-interest bearing checking

 

$

2,300

 

$

2,366

 

Premier checking

 

1,022

 

695

 

Other int. bearing checking

 

841

 

1,004

 

Subtotal

 

4,163

 

4,065

 

Premier savings

 

943

 

437

 

Other savings

 

1,359

 

1,649

 

Subtotal

 

2,302

 

2,086

 

Money market

 

610

 

632

 

Certificates

 

2,431

 

1,771

 

Total

 

$

9,506

 

$

8,554

 

 

 

 

 

 

 

Average Rate:

 

2.22

%

1.23

%

 

*   Annual growth rate

 

20.)                           Premier Checking & Savings Deposits + 74%*

Quarterly Average Balances

($ 000s)

 

 

 

9/30/05

 

12/31/05

 

3/31/06

 

6/30/06

 

9/30/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Premier Savings

 

$

437

 

$

640

 

$

780

 

$

856

 

$

943

 

Premier Checking

 

695

 

828

 

938

 

1,001

 

1,022

 

Total

 

$

1,132

 

$

1,468

 

$

1,718

 

$

1,857

 

$

1,965

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rate:

 

2.87

%

3.27

%

3.38

%

3.57

%

3.77

%

 

 

 

 

 

 

 

 

 

 

 

 

1-month LIBOR spread

 

(.73

)

(.90

)

(1.23

)

(1.52

)

(1.58

)

 

*Twelve-month growth rate

 

21.)                           Card Revenue +17%*

($ 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

 

24.4

 

Fourth Quarter

 

13.1

 

12.1

 

17.7

 

21.4

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

47.2

 

$

53.0

 

$

63.5

 

$

79.8

 

$

68.6

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Volume:

 

$

3,216

 

$

3,899

 

$

4,735

 

$

5,673

 

$

4,778

1

 

 

 

 

 

 

 

 

 

 

 

 

Avg. Off-line Interchange Rate:

 

1.55

%

1.43

%

1.40

%

1.43

%

1.46

%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

 

                                          13% increase in sales volume2

 

                                          Number of active accounts up 38,600, or 5%2, to 807,994

 

                                          16.5 transactions per month on active cards, up 7%2

 

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

2  3Q06 vs. 3Q05

 

23.)                           Small Business Checking Deposits

($ millions)

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

9/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Small Business Checking Deposits

 

$

380

 

$

461

 

$

546

 

$

607

 

$

624

 

 

 

 

 

 

 

 

 

 

 

 

 

# of Accounts

 

91,385

 

102,557

 

113,605

 

122,956

 

132,288

 

 

24.)                           Small Business Services and Products

 

At September 30, 2006

 

                                          $624 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

 

                                          100,139 TCF Business Check CardsSM

 

                                          Introduced TCF Miles Plus Business Check CardSM 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

 

9/06

 

12/06
Projected

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supermarket Branches

 

20

 

35

 

40

 

51

 

58

 

63

 

63

 

Traditional and Campus Branches

 

5

 

17

 

31

 

50

 

71

 

78

 

86

 

Total

 

25

 

52

 

71

 

101

 

129

 

141

 

149

 

# of Branches Opened

 

27

 

27

 

19

 

30

 

28

 

12

 

20

 

Percent of Total

 

7

%

13

%

18

%

23

%

28

%

31

%

33

%

 

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 +55%*

Branches opened since January 1, 2001

($ millions)

 

 

 

12/01

 

12/02

 

12/03

 

12/04

 

12/05

 

9/06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

24

 

$

142

 

$

238

 

$

442

 

$

980

 

$

1,314

 

 

*      Twelve-month growth rate

 

28.)                           New Branch Total Checking Accounts +31%*

Branches opened since January 1, 2001

(000s)

 

 

 

12/01

 

12/02

 

12/03

 

12/04

 

12/05

 

9/06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking Accounts

 

29

 

60

 

103

 

158

 

214

 

269

 

 

*      Twelve-month growth rate

 

29.)                           New Branch Banking Fees & Other Revenue1 +27%*

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

 

.1

 

1.7

 

4.2

 

9.9

 

13.8

 

18.6

 

Third Quarter

 

.3

 

2.1

 

4.9

 

10.6

 

15.0

 

19.1

 

Fourth Quarter

 

.8

 

2.9

 

5.5

 

11.2

 

15.3

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1.2

 

$

7.8

 

$

17.7

 

$

38.0

 

$

55.0

 

$

53.1

 

 

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 +47%*

Branches opened since January 1, 2001

($ millions)

 

 

 

12/01

 

12/02

 

12/03

 

12/04

 

12/05

 

9/06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Loans

 

$

9

 

$

62

 

$

156

 

$

305

 

$

459

 

$

605

 

 

*      Twelve-month growth rate

 

31.)                           Campus Banking

 

At September 30, 2006

 

                                          Alliances with the University of Minnesota and the 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.

 

                                          Ranked 6th largest in number of campus card banking relationships in the U.S.1

 

                                          105,147 total checking accounts

 

                                          $212.1 million in total deposits

 

1       Source: CR80News 2006 Banking Partner Survey

 

32.)                           New Products and Services

 

                                          TCF Visa® Gift Cards

 

                                          Merchant Gift Cards

 

                                          TCF MILES PLUSSM 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

 

$

.69

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend Payout Ratio:

 

30

%

28

%

35

%

36

%

35

%

37

%

37

%

43

%

40

%

43

%

45

%

 

10-year compounded annual growth rate of 18% is the 4th 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

 

$

401.6

 

$

388.4

 

3.4

%

Fees & Other Revenue:

 

 

 

 

 

 

 

Banking

 

309.4

 

292.9

 

5.6

 

Other

 

61.2

 

49.7

 

23.1

 

Total Fees and Other Revenue

 

370.6

 

342.6

 

8.2

 

Gains on Sales of Securities

 

-

 

10.7

 

(100.0

)

Total Non-Interest Income

 

370.6

 

353.3

 

4.9

 

Total Revenue

 

772.2

 

741.7

 

4.1

 

Provision for Credit Losses

 

7.5

 

1.4

 

N.M.

 

Non-Interest Expense

 

486.7

 

452.1

 

7.7

 

Net Income

 

191.2

 

199.6

 

(4.2

)

 

 

 

 

 

 

 

 

Diluted EPS

 

$

1.48

 

$

1.50

 

 

 

ROA1

 

1.83

%

2.11

%

 

 

ROE1

 

26.04

%

28.32

%

 

 

ROTE1, 2

 

31.06

%

34.11

%

 

 

 

1  Annualized

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

N.M. Not Meaningful.

 

36.)         Significant Financial Items

($ 000s)

 

 

 

Year-to-date

 

 

 

 

 

2006

 

2005

 

Change

 

Mortgage-backed Securities Gains

 

$

-

 

$

10,671

 

$

(10,671

)

Land and Building Sales

 

4,188

 

10,069

 

(5,881

)

Sale of Mortgage Servicing Rights

 

1,601

 

-

 

1,601

 

Total Asset Sale Gains

 

5,789

 

20,740

 

(14,951

)

 

 

 

 

 

 

 

 

Commercial Loan Recovery

 

-

 

3,322

 

(3,322

)

Total, pre-tax

 

$

5,789

 

$

24,062

 

$

(18,273

)

 

 

 

 

 

 

 

 

Favorable Tax Adjustments

 

$

5,295

 

$

5,201

 

$

94

 

 

 

 

 

 

 

 

 

Total, after-tax

 

$

9,167

 

$

21,430

 

$

(12,263

)

 

 

 

 

 

 

 

 

Impact on Diluted EPS

 

$

.07

 

$

.16

 

$

(.09

)

 

37.)         Power ProfitsSM

Average Balance ($ millions)

Profit center net income ($ 000s)

 

 

 

 

 

YTD 2006

 

 

 

 

 

Balance

 

Net Income

 

%

 

Commercial Banking

 

$

2,878

 

$

18,741

 

10

%

Consumer Lending

 

5,450

 

36,594

 

19

 

Leasing and Equipment Finance

 

1,622

 

25,694

 

13

 

Total Power Assets®

 

$

9,950

 

81,029

 

42

 

 

 

 

 

 

 

 

 

Traditional and Campus Branches (202)

 

$

7,319

 

63,314

 

33

 

Supermarket Branches (257)

 

2,049

 

27,380

 

14

 

Total Power Liabilities®

 

$

9,368

 

90,694

 

47

 

Total Power Assets & Liabilities

 

 

 

171,723

 

89

 

Equity and other

 

 

 

19,487

 

11

 

Net Income

 

 

 

$

191,210

 

100

%

 



 

38.)         Return to Stockholders1 + 17%*

 

 

 

 

 

SNL All

 

 

 

Period Ending

 

 

TCF

 

Bank & Thrift

 

S&P 500

 

6/86

 

$

100.00

 

$

100.00

 

$

100.00

 

9/86

 

$

92.52

 

$

88.55

 

$

99.94

 

9/87

 

$

83.16

 

$

112.29

 

$

135.41

 

9/88

 

$

80.21

 

$

109.09

 

$

118.66

 

9/89

 

$

121.00

 

$

144.45

 

$

157.82

 

9/90

 

$

52.84

 

$

87.76

 

$

143.24

 

9/91

 

$

156.33

 

$

150.84

 

$

187.88

 

9/92

 

$

215.55

 

$

192.09

 

$

208.64

 

9/93

 

$

349.94

 

$

242.52

 

$

235.77

 

9/94

 

$

356.48

 

$

241.10

 

$

244.46

 

9/95

 

$

541.33

 

$

317.76

 

$

317.17

 

9/96

 

$

713.82

 

$

413.57

 

$

381.66

 

9/97

 

$

1,130.44

 

$

657.10

 

$

536.03

 

9/98

 

$

783.86

 

$

721.98

 

$

584.52

 

9/99

 

$

1,157.72

 

$

746.29

 

$

747.04

 

9/00

 

$

1,572.70

 

$

897.91

 

$

846.28

 

9/01

 

$

1,970.22

 

$

851.99

 

$

620.99

 

9/02

 

$

1,853.49

 

$

805.72

 

$

493.78

 

9/03

 

$

2,162.53

 

$

1,041.02

 

$

614.24

 

9/04

 

$

2,806.94

 

$

1,190.35

 

$

699.45

 

9/05

 

$

2,552.53

 

$

1,215.02

 

$

785.15

 

9/06

 

$

2,596.58

 

$

1,463.11

 

$

869.87

 

 

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; changes in regulatory analysis or requirements related to the adequacy of the Allowance for Loan and Leases Losses; 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

 

9/06

 

 

$

26.29

 

$

.92

*

 

*  Annualized

 

41.)         Appendix

 



 

42.)         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

 

$

1.48

 

 

1  Year-to-date

 



 

43.)         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

 

65.9

 

Fourth Quarter

 

59.8

 

59.5

 

67.4

 

65.5

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

233

 

$

216

 

$

255

 

$

265

 

$

191

 

 

1  Year-to-date

 

44.)         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

 

135.0

 

Fourth Quarter

 

126.6

 

119.1

 

126.5

 

129.3

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

499

 

$

481

 

$

492

 

$

518

 

$

402

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Margin:

 

4.71

%

4.54

%

4.54

%

4.46

%

4.19

%1

 

1  Year-to-date (annualized)

 

45.)         Risk-Based Capital

($ millions)

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

9/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Actual

 

$

851

 

$

842

 

$

959

 

$

1,050

 

$

1,163

 

Well Capitalized Requirement

 

$

777

 

$

785

 

$

881

 

$

983

 

$

1,038

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1:

 

9.96

%

9.75

%

9.12

%

8.79

%

8.69

%

Total:

 

10.95

%

10.73

%

10.88

%

10.68

%

11.20

%

Target (10.6%):

 

$

832

 

$

824

 

$

934

 

$

1,042

 

$

1,101

 

Excess RBC:

 

$

74

 

$

57

 

$

77

 

$

67

 

$

124

 

Excess Over Target:

 

$

19

 

$

18

 

$

25

 

$

8

 

$

62

 

 



 

46.)         TCF NIM vs. Top 50 Banks1

(Percent)

 

 

 

TCF

 

Top 50 Banks1

 

2Q01

 

4.40

 

3.87

 

3Q01

 

4.55

 

3.87

 

4Q01

 

4.74

 

3.85

 

1Q02

 

4.83

 

4.09

 

2Q02

 

4.76

 

3.93

 

3Q02

 

4.68

 

4.06

 

4Q02

 

4.59

 

3.90

 

1Q03

 

4.45

 

3.80

 

2Q03

 

4.45

 

3.64

 

3Q03

 

4.57

 

3.72

 

4Q03

 

4.68

 

3.70

 

1Q04

 

4.52

 

3.56

 

2Q04

 

4.53

 

3.53

 

3Q04

 

4.56

 

3.53

 

4Q04

 

4.56

 

3.54

 

1Q05

 

4.56

 

3.56

 

2Q05

 

4.53

 

3.56

 

3Q05

 

4.43

 

3.53

 

4Q05

 

4.31

 

3.50

 

1Q06

 

4.25

 

3.50

 

2Q06

 

4.22

 

3.46

 

 

 

 

2Q01

 

2Q06

 

Change

 

 

 

 

 

 

 

 

 

TCF

 

4.40

%

4.22

%

(18

) bps

Top 50 Banks1

 

3.87

%

3.46

%

(41

) bps

Difference

 

53

 bps

76

 bps

23

 bps

 

1   Source: CapitalBridge

 

47.)         One Year Interest Rate Gap

($ millions)

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

9/06

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Gap

 

$

1,110

 

$

161

 

$

585

 

$

318

 

$

(661

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of Total Assets

 

9.1

%

1.0

%

4.7

%

2.4

%

(4.6

)%

 

48.)         Power Asset Geographic Profile

($ millions)

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

Consumer

 

Real Estate

 

Leasing &

 

 

 

 

 

Home Equity

 

& Commercial

 

Equipment

 

 

 

At September 30, 2006:

 

& Other

 

Business

 

Finance

 

Total

 

Minnesota

 

$

2,270

 

$

798

 

$

69

 

$

3,137

 

Illinois

 

1,679

 

609

 

60

 

2,348

 

Michigan

 

1,019

 

838

 

85

 

1,942

 

Wisconsin

 

493

 

451

 

39

 

983

 

Colorado

 

260

 

40