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Section 1: 8-K (8-K)

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM 8-K

 


 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): July 26, 2007

 


 

 

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 second quarter of 2007 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, 2007, 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.tcfbank.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 2007 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, 2007, 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.tcfbank.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, 2007

 

 

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
(Principal Executive Officer)

 

 

 

 

 

/s/ Thomas F. Jasper

 

Thomas F. Jasper, Executive Vice President
and Chief Financial Officer
(Principal Financial Officer)

 

 

 

 

 

/s/ David M. Stautz

 

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

 

 

Dated:   July 26, 2007

 

3


(Back To Top)

Section 2: EX-99.1 (EX-99.1)

Exhibit 99.1

 

TCF Financial Corporation

Second Quarter 2007 Investor Presentation

The Convenience Franchise

 

1.)                                  Corporate Profile

 

At June 30, 2007

 

                                          $15 billion financial holding company headquartered in Minnesota

 

                                          40th largest U.S. based bank by asset size1

 

                                          446 bank branches, 133 branches opened since January 1, 2002

 

                                          25th largest branch network2

 

                                          10 campus card banking relationships - 6th largest3

 

                                          1,700 ATMs free to TCF customers; 1,201 off-site

 

                                          12th largest issuer of VISA® Classic debit cards4

 

                                          18th largest bank-owned equipment finance/leasing company in the U.S.5

 

                                          ROA 1.95%;  ROE 28.08%

 

                                          2,428,643 deposit accounts

 

1   Source:  CapitalBridge; 3/31/07

2   Source: SNL Financial, LC; 2Q07

3   Source: CR80News 2006 Banking Partner Survey

4   Source: VISA; 1Q07; ranked by sales volume

5   Source: The Monitor; 7/06

 

2.)                                  Corporate Profile

 

                                          Bank branches located in seven states

 

 

 

At 6/30/07

 

At 1/1/02

 

Traditional

 

191

 

134

 

Supermarket

 

241

 

234

 

Campus

 

14

 

7

 

Total

 

446

 

375

 

 

 

 

 

 

 

 

 

At 6/30/07

 

At 1/1/02

 

Minnesota

 

108

 

88

 

Illinois

 

199

 

179

 

Michigan

 

56

 

57

 

Colorado

 

45

 

13

 

Wisconsin

 

32

 

33

 

Indiana

 

5

 

5

 

Arizona

 

1

 

 

Total

 

446

 

375

 

 

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

                                          1,700 free ATMs

                                          Free debit cards

                                          No purchase-fee gift cards

                                          Free coin counting

                                          TCF® Totally Free Online 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 3.5 million shares of common stock during the first six months of 2007 at an average cost of $27.23 per share

 

                                          At 6/30/07, 5.8 million shares remain available to purchase under board authorizations

 

6.)                                  Dividend History

 

 

 

1997

 

1998

 

1999

 

2000

 

2001

 

2002

 

2003

 

2004

 

2005

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends Paid

 

$

.23

 

$

.31

 

$

.36

 

$

.41

 

$

.50

 

$

.58

 

$

.65

 

$

.75

 

$

.85

 

$

.92

 

$

.485

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend Payout Ratio:

 

28

%

35

%

36

%

35

%

37

%

37

%

43

%

40

%

43

%

48

%

43

%

 

10-year compounded annual growth rate of 17% is the 6th highest among the 50 largest banks in the country 1

 

1        Source:  CapitalBridge

2        Year-to-date

 

7.)                                  Return of Net Income to Stockholders

($ millions)

 

 

 

Net

 

Dividends

 

Stock

 

 

 

% of Net

 

 

 

Income

 

Paid

 

Repurchase

 

Total

 

Income

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

2006

 

244.9

 

121.4

 

101.0

 

222.4

 

91

 

2007¹

 

144.9

 

63.0

 

94.2

 

157.2

 

108

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1,125.8

 

$

495.9

 

$

555.2

 

$

1,051.1

 

93

%

% of net income

 

 

 

44

%

49

%

93

%

 

 

 

1  Year-to-date

 

8.)                                  Power Assets

 

9.)                                  Consumer Home Equity Lending +11%*

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

6/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

3,588

 

$

4,382

 

$

5,149

 

$

5,883

 

$

6,136

 

 

*    Twelve-month growth rate

 



 

10.)                           Consumer Home Equity Loans

 

At June 30, 2007

 

                                          79% amortizing loans, 21% lines of credit

 

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

 

                                          76% fixed rate and 24% variable rate (prime based)

 

                                          Average home value of $242,9281

 

                                          Yield 7.39%

 

                                          Over-30-day delinquency rate .46%2

 

                                          Net charge-offs: 2007 = .26%³, 2006 = .13%, 2005 = .10%

 

                                          Average FICO score 721

 

1   Based on most recent appraisal values known to TCF

2   Excludes non-accrual loans

3   Annualized

 

11.)                           Commercial Lending

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

6/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Business

 

$

429.4

 

$

436.7

 

$

435.2

 

$

552.0

 

$

569.1

 

Commercial Real Estate

 

1,916.7

 

2,154.4

 

2,297.5

 

2,390.7

 

2,354.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

2,346

 

$

2,591

 

$

2,733

 

$

2,943

 

$

2,924

 

 

12.)                           Commercial Loans

 

At June 30, 2007

 

                                          Commercial real estate

                                          25% retail services

                                          21% apartment loans

                                          16% office buildings

 

                                          Commercial business — $569 million

 

                                          Yield 7.30%

 

                                          Over-30-day delinquency rate .38%1

 

                                          Net charge-offs/(recoveries): 2007 = .04%2, 2006 = .02% , 2005 = (.08)%

 

                                          Approximately 98% of all commercial loans secured

 

                                          CRE location mix: 93% TCF Markets, 7% Other

 

1   Excludes non-accrual loans

2   Annualized

 



 

13.)                           Leasing and Equipment Finance 1 +14%*

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

6/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Leasing and Equipment Finance

 

$

1,162

 

$

1,389

 

$

1,560

 

$

1,899

 

$

1,987

 

 

1               Includes operating leases

*            Twelve-month growth rate

 

14.)                           Leasing and Equipment Finance

 

At June 30, 2007

 

                                          18th largest bank-owned equipment finance/leasing company in the U.S.1

 

                                          37th largest equipment finance/leasing company in the U.S.2

 

                                          Equipment type

                                          20% specialty vehicle

                                          16% manufacturing

                                          18% construction

                                          16% medical

                                          12% technology and data processing

 

                                          Yield 7.76%

 

                                          Uninstalled backlog of $281.6 million; up $31.9 million from year-end 2006

 

                                          Over-30-day delinquency rate .58% 3

 

                                          Net charge-offs: 2007 = .06%4, 2006 = .29%, 2005 = 1.50%5

 

1               Source: The Monitor; 7/06

2               Source: The Monitor; 6/07

3               Excludes non-accrual loans and leases

4               Annualized

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

 

15.)                           Allowance for Loan & Lease Losses

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

6/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan & Lease Losses

 

$

72.5

 

$

75.4

 

$

55.8

 

$

58.5

 

$

66.8

 

Net Charge-offs (NCO)

 

$

19.6

 

$

17.5

 

$

28.2

 

$

18.0

 

$

9.7

 

 

 

 

 

 

 

 

 

 

 

 

 

As a % of Loans & Leases:

 

 

 

 

 

 

 

 

 

 

 

Allowance

 

.87

%

.80

%

.55

%

.52

%

.58

%

NCO

 

.24

%

.20

%

.29

%

.17

%

.17

%1

Coverage Ratio

 

3.7

X

4.3

X

2.0

X

3.3

X

3.4

X1

 

1               Annualized

 

16.)                           Delinquencies (Over 30-Day)1

(Percent)

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

6/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Delinquencies

 

.47

%

.37

%

.43

%

.63

%

.51

%

 

 

 

 

 

 

 

 

 

 

 

 

Delinquencies

 

$

38.7

 

$

34.4

 

$

43.6

 

$

71.7

 

$

58.7

 

 

1               Excludes non-accrual loans and leases

 



 

17.)                           Non-Performing Assets

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

6/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Accrual Loans and Leases

 

$

35.4

 

$

46.9

 

$

29.7

 

$

43.2

 

$

40.4

 

Real Estate Owned

 

33.5

 

17.2

 

17.7

 

22.4

 

44.8

 

Total

 

$

68.9

 

$

64.1

 

$

47.4

 

$

65.6

 

$

85.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Reserves/NAs:

 

205

%

161

%

188

%

136

%

165

%

NPAs/Assets:

 

.61

%

.52

%

.35

%

.45

%

.57

%

 

18.)                           Total Deposits +6%*

Average Balances

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

6/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of Deposit

 

$1,744

 

$1,494

 

$1,740

 

$2,291

 

$2,520

 

Money Market

 

887

 

764

 

641

 

621

 

607

 

Savings

 

2,072

 

1,936

 

2,076

 

2,306

 

2,407

 

Checking

 

3,073

 

3,582

 

4,023

 

4,190

 

4,196

 

Total

 

$7,776

 

$7,776

 

$8,480

 

$9,408

 

$9,730

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rate:

 

.73

%

.55

%

1.15

%

2.08

%

2.39

%

 

 

 

 

 

 

 

 

 

 

 

 

Number of Deposit Accounts

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

2,150

 

2,216

 

2,296

 

2,427

 

2,429

 

 

*            Twelve-month growth rate, excluding Michigan deposits sold.

 

19.)                           Premier Checking & Savings Deposits + 17%*

Average Balances

($ millions)

 

 

 

12/31/03

 

12/31/04

 

12/31/05

 

12/31/06

 

6/30/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Premier Savings

 

$

 

$

85

 

$

427

 

$

899

 

$

1,090

 

Premier Checking

 

1

 

199

 

642

 

1,001

 

1,072

 

Total

 

$

1

 

$

284

 

$

1,069

 

$

1,900

 

$

2,162

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rate:

 

1.77

%

1.61

%

2.73

%

3.62

%

3.65

%

 

 

 

 

 

 

 

 

 

 

 

 

1-month LIBOR spread

 

(.56

)

(.11

)

(.65

)

(1.48

)

(1.67

)

 

*            Twelve-month growth rate.

 

20.)                           Small Business Deposits +6%*

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

6/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking Deposits

 

$

461

 

$

546

 

$

607

 

$

614

 

$

596

 

Money Market Deposits

 

1

 

17

 

89

 

116

 

145

 

Total

 

$

462

 

$

563

 

$

696

 

$

730

 

$

741

 

 

 

 

 

 

 

 

 

 

 

 

 

# of Accounts

 

102,607

 

113,979

 

124,145

 

135,861

 

138,247

 

 

*      Twelve-month growth rate, excluding Michigan deposits sold

 

21.)                           Small Business Services and Products

 

At June 30, 2007

 

                  $596 million in 0% interest checking account deposits

 

                  Small business loans up to $500,000; small business adminstration loans up to $150,000

 

                  103,452 TCF Business Check CardsSM

 

                  TCF Miles Plus Business Check CardSM loyalty program

 

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

 

22.)                           Banking Fees and Other Revenue1

($ millions)

 

 

 

2003

 

2004

 

2005

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

82.1

 

$

87.7

 

$

88.2

 

$

94.4

 

$

96.2

 

Second Quarter

 

92.8

 

104.5

 

100.1

 

106.7

 

108.7

 

Third Quarter

 

94.3

 

103.0

 

104.7

 

108.2

 

 

Fourth Quarter

 

90.6

 

98.8

 

100.9

 

101.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

360

 

$

394

 

$

394

 

$

411

 

$

205

 

 

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

 



 

23.)                           Card Revenue +8%*

($ millions)

 

 

 

2003

 

2004

 

2005

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

13.2

 

$

13.5

 

$

17.6

 

$

21.3

 

$

23.3

 

Second Quarter

 

14.8

 

16.0

 

19.8

 

22.9

 

24.9

 

Third Quarter

 

12.9

 

16.3

 

21.0

 

24.4

 

 

Fourth Quarter

 

12.1

 

17.7

 

21.4

 

23.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

53.0

 

$

63.5

 

$

79.8

 

$

92.1

 

$

48.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Volume:

 

$

3,899

 

$

4,735

 

$

5,673

 

$

6,465

 

$

3,441

1

 

 

 

 

 

 

 

 

 

 

 

 

Avg. Off-line Interchange Rate:

 

1.43

%

1.40

%

1.43

%

1.45

%

1.42

% 1

 

*            Year-to-date growth rate (‘07 vs. ‘06)

1               Year-to-date

 

24.)                           Card Revenue

 

                                          12th largest issuer of VISA® Classic debit cards1

 

                                          13th largest issuer of VISA® Commercial debit cards1

 

                                          $3.4 billion in sales volume, up 9.0% 2

 

                                          19.1 transactions per month on active cards, up 7.1% 2

 

1   Source: VISA; 1Q07; ranked by sales volume

2   Year-to-date

 

25.)                           New Branch Expansion

 

26.)                           Total New Branches

Branches opened since January 1, 2002

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12/07

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

12/06

 

6/07

 

Projected

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supermarket Branches

 

15

 

20

 

31

 

38

 

43

 

46

 

49

 

Traditional and Campus Branches

 

12

 

26

 

45

 

66

 

80

 

87

 

93

 

Total

 

27

 

46

 

76

 

104

 

123

 

133

 

142

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

# of Branches Opened

 

27

 

19

 

30

 

28

 

19

 

11

 

20

 

Percent of Total

 

7

%

11

%

18

%

23

%

27

%

30

%

31

%

 



 

27.)         New Traditional Branch Model - Net Income

($ 000s)

 

 

 

Year of Existence

 

 

 

1

 

2

 

3

 

4

 

5

 

6

 

7

 

8

 

9

 

10

 

Net Income1

 

$

(398

)

$

(113

)

$

35

 

$

218

 

$

265

 

$

371

 

$

427

 

$

465

 

$

587

 

$

689

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Traditional branch capital expenditure $3.7 million

 

1   Includes deposits and consumer lending

 

28.)         New Branch Total Deposits +20%*

Branches opened since January 1, 2002

($ millions)

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

12/06

 

6/07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

45

 

$

116

 

$

287

 

$

782

 

$

1,076

 

$

1,226

 

 

*   Twelve-month growth rate

 

29.)         New Branch Total Deposit Accounts +37%*

Branches opened since January 1, 2002

(000s)

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

12/06

 

6/07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit Accounts

 

$

 35

 

$

 67

 

$

 127

 

$

 200

 

$

 290

 

$

 352

 

 

*   Twelve-month growth rate

 



 

30.)         New Branch Banking Fees & Other Revenue1 +30%*

Branches opened since January 1, 2002

($ millions)

 

 

 

2002

 

2003

 

2004

 

2005

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

 

$

 1.0

 

$

 3.4

 

$

 7.6

 

$

 11.6

 

$

 15.0

 

Second Quarter

 

.1

 

1.6

 

6.1

 

9.9

 

14.2

 

18.5

 

Third Quarter

 

.3

 

2.1

 

7.0

 

10.9

 

14.8

 

 

Fourth Quarter

 

.7

 

2.5

 

7.6

 

11.3

 

14.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1.1

 

$

7.2

 

$

24.1

 

$

39.7

 

$

54.8

 

$

33.5

 

 

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

*    Twelve-month growth rate

 

31.)         Campus Banking

 

At June 30, 2007

 

      Alliances with the Universities of Minnesota, Michigan and Illinois plus ten other colleges

 

      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

 

      112,033 total deposit accounts

 

      $181 million in total deposits

 

1   Source: CR80News 2006 Banking Partner Survey

 

32.)         New Products and Services

 

      TCF Power CheckingSM

 

      TCF® Visa® Gift Cards

 

      Merchant Gift Cards

 

      TCF® CashRewardsSM Card Loyalty Program

 

      Electronic Statement Delivery

 

      TCF Express Check Conversion

 

      TCF Express Remote Deposit

 

      Medical Equipment Leasing

 

33.)         Financial Highlights

 



 

34.)         Financial Highlights

($ millions, except per-share data)

 

 

 

Year-to-Date

 

 

 

 

 

2007

 

2006

 

Change

 

Net Interest Income

 

$

272.9

 

$

266.6

 

2.4

%

Fees & Other Revenue:

 

 

 

 

 

 

 

Banking

 

204.9

 

201.1

 

1.9

 

Other

 

34.1

 

37.1

 

(8.1

)

Total Fees and Other Revenue

 

239.0

 

238.2

 

.3

 

Gains on Sales of Branches and Real Estate

 

33.9

 

2.9

 

N.M.

 

Total Non-Interest Income

 

272.9

 

241.1

 

13.2

 

Total Revenue

 

$

545.8

 

$

507.7

 

7.5

 

Provision for Credit Losses

 

18.0

 

5.3

 

N.M.

 

Non-Interest Expense

 

326.7

 

321.2

 

1.7

 

Net Income

 

144.9

 

125.3

 

15.6

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

1.14

 

$

.96

 

 

 

ROA

 

1.95

%

1.82

%

 

 

ROE

 

28.08

%

25.80

%

 

 

 

N.M. Not Meaningful.

 

35.)         Power ProfitsSM

Average Balance ($ millions)

Profit center net income ($ 000s)

 

 

 

 

 

YTD 2007

 

 

 

 

 

Balance

 

Net Income

 

%

 

Consumer Lending

 

$

6,019

 

$

18,976

 

15

%

Leasing and Equipment Finance

 

1,859

 

16,802

 

14

 

Commercial Banking

 

 

2,919

 

 

9,754

 

8

 

Total Power Assets®

 

$

10,797

 

$

45,532

 

37

%

 

 

 

 

 

 

 

 

Traditional and Campus Branches (205)

 

$

7,427

 

$

39,955

 

32

 

Supermarket Branches (241)

 

2,193

 

19,079

 

15

 

Total Power Liabilities®

 

$

9,620

 

$

59,034

 

47

%

Total Power Assets & Liabilities

 

 

 

104,566

 

84

 

Equity and Other

 

 

 

19,599

 

16

 

Net Income Before Branch Sales

 

 

 

$

124,165

 

100

%

Michigan Branch Sales

 

110

 

20,688

 

 

 

Net Income

 

$

9,730

 

$

144,853

 

 

 

 

36.)         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

 

$

803.84

 

6/00

 

$

1,066.08

 

$

781.22

 

$

862.11

 

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

 

$

603.69

 

6/04

 

$

2,672.97

 

$

1,231.18

 

$

719.06

 

6/05

 

$

2,450.77

 

$

1,318.41

 

$

764.53

 

6/06

 

$

2,590.40

 

$

1,444.61

 

$

830.51

 

6/07

 

$

2,822.02

 

$

1,544.43

 

$

1,001.49

 

 

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

*  Annualized return since June 18, 1986

Source: SNL Financial, LC and S&P

 



 

37.)                           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 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 deposit accounts and the possibility that deposit account losses (fraudulent checks, etc.) may increase; impact of legal, legislative or other changes affecting customer account charges and fee income; 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; including adoption of state legislation that would increase state taxes, adoption of proposed federal legislation reducing interest subsidies and other benefits available to TCF in its education lending programs; 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 or changes in allowance for loan and lease losses dictated by market conditions or regulatory requirements; 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.

 



 

38.)                           Appendix

 

39.)                           Diluted EPS

 

 

 

1997

 

1998

 

1999

 

2000

 

2001

 

2002

 

2003

 

2004

 

2005

 

2006

 

20071

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

.84

 

$

.88

 

$

1.00

 

$

1.17

 

$

1.35

 

$

1.58

 

$

1.53

 

$

1.86

 

$

2.00

 

$

1.90

 

$

1.14

 

 

1  Year-to-date

 

40.)                           Net Income

($ millions)

 

 

 

2003

 

2004

 

2005

 

2006

 

20071

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

60.1

 

$

60.7

 

$

63.5

 

$

58.2

 

$

82.7

 

Second Quarter

 

60.3

 

65.2

 

70.6

 

67.1

 

62.1

 

Third Quarter

 

36.0

 

61.7

 

65.5

 

65.9

 

 

Fourth Quarter

 

59.5

 

67.4

 

65.5

 

53.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

216

 

$

255

 

$

265

 

$

245

 

$

145

 

 

1   Year-to-date

 

41.)                           Net Interest Income

($ millions)

 

 

 

2003

 

2004

 

2005

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

122.4

 

$

118.4

 

$

129.1

 

$

131.2

 

$

135.5

 

Second Quarter

 

119.8

 

122.4

 

131.3

 

135.4

 

137.4

 

Third Quarter

 

119.9

 

124.5

 

128.1

 

135.0

 

 

Fourth Quarter

 

119.1

 

126.5

 

129.3

 

135.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

481

 

$

492

 

$

518

 

$

538

 

$

273

 

Net Interest Margin:

 

4.54

%

4.54

%

4.46

%

4.16

%

4.01

%1

 

1   Year-to-date (annualized)

 



 

42.)                           Risk-Based Capital

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

6/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Actual

 

$

842

 

$

959

 

$

1,050

 

$

1,173

 

$

1,178

 

Well Capitalized Requirement

 

$

785

 

$

881

 

$

983

 

$

1,057

 

$

1,084

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1:

 

9.75

%

9.12

%

8.79

%

8.65

%

8.40

%

Total:

 

10.73

%

10.88

%

10.68

%

11.10

%

10.86

%

Target (10.6%):

 

$

824

 

$

934

 

$

1,042

 

$

1,120

 

$

1,149

 

Excess RBC:

 

$

57

 

$

77

 

$

67

 

$

116

 

$

93

 

Excess Over Target:

 

$

18

 

$

25

 

$

8

 

$

53

 

$

28

 

 

43.)                           One Year Interest Rate Gap

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

6/07

 

Adjusted Gap

 

$

161

 

$

585

 

$

318

 

$

(630

)

$

(1,191

)

 

 

 

 

 

 

 

 

 

 

 

 

% of Total Assets

 

1.0

%

4.7

%

2.4

%

(4.3

)%

(8.0

)%

 

44.)                           Power Asset Geographic Profile

($ 000s)

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

Consumer

 

Real Estate

 

Leasing &

 

 

 

 

 

Home Equity

 

& Commercial

 

Equipment

 

 

 

At June 30, 2007:

 

& Other

 

Business

 

Finance

 

Total

 

Minnesota

 

$

2,378,279

 

$

787,232

 

$

70,466

 

$

3,235,977

 

Illinois

 

1,888,746

 

640,037

 

65,594

 

2,594,377

 

Michigan

 

1,072,939

 

799,059

 

85,878

 

1,957,876

 

Wisconsin

 

496,215

 

426,022

 

37,688

 

959,925

 

Colorado

 

297,240

 

46,171

 

34,309

 

377,720

 

California

 

2,352

 

19,549

 

252,167

 

274,068

 

Florida

 

6,307

 

40,466

 

139,026

 

185,799

 

Texas

 

731

 

2,526

 

112,328

 

115,585

 

Arizona

 

10,812

 

14,906

 

81,524

 

107,242

 

Indiana

 

20,541

 

14,477

 

32,408

 

67,426

 

Other

 

26,905

 

133,465

 

1,002,240

 

1,162,610

 

Total

 

$

6,201,067

 

$

2,923,910

 

$

1,913,628

 

$

11,038,605

 

 

45.)                           Consumer Home Equity and Commercial Loans

Quarterly Average Balances

($ millions)

 

 

 

 

 

 

 

Change

 

 

 

 

 

 

 

Inc./(Dec.)

 

 

 

6/30/07

 

6/30/06

 

$

 

%

 

Consumer Home Equity:

 

 

 

 

 

 

 

 

 

Variable-rate

 

$1,421

 

$1,689

 

$(268

)

(16

)%

Yield

 

8.80

%

8.69

%

11

bps

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-rate

 

$4,614

 

$3,721

 

$893

 

24

%

Yield

 

6.97

%

6.80

%

17

bps

 

 

 

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

Variable-rate

 

$990

 

$1,098

 

$(108

)

(10

)%

Yield

 

7.70

%

7.56

%

14

bps

 

 

 

 

 

 

 

 

 

 

 

 

Fixed- and adjustable-rate

 

$1,916

 

$1,801

 

$115

 

6

%

Yield

 

6.42

%

6.24

%

18

bps

 

 

 



 

46.)                           Customer Payment Activity

Transaction Volume

(# millions)

 

 

 

2007 1

 

2006 1

 

% Increase/
Decrease

 

Checks/ACH

 

60.3

 

65.1

 

(7.5

)%

ATM

 

15.6

 

16.5

 

(5.5

)%

Debit Card Purchases

 

94.1

 

86.5

 

8.8

%

 

1   YTD 07 vs. YTD 06

 

47.)                           Net Charge-Offs by Business Line

 

 

 

 

 

 

 

 

 

 

 

YTD1

 

 

 

2003

 

2004

 

2005

 

2006

 

2007

 

Consumer home equity

 

.11

%

.09

%

.10

%

.13

%

.26

%

Total Consumer

 

.30

 

.28

 

.19

 

.22

 

.28

 

Commercial real estate

 

.07

 

.02

 

 

.01

 

.03

 

Commercial business

 

.18

 

.04

 

(.51

)

.09

 

.07

 

Leasing and equipment finance

 

.69

 

.43

 

1.50

2

.29

 

.06

 

Residential real estate

 

.01

 

.01

 

.01

 

.04

 

.02

 

Total

 

.24

 

.20

 

.29

 

.17

 

.17

 

 

1   Annualized

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

 

48.)                           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 gains/losses on sales of securities, gains on sales of branches and real estate, gains/losses on termination of debt, title insurance revenues (a business sold in 1999) and certain other 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.

 


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