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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): October 24, 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)

 

(952) 745-2760

(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 2007 and does not represent a complete set of financial statements and related notes 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 notes prepared in accordance with GAAP and management’s discussion and analysis included in the Company’s reports on 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 24, 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 third quarter of 2007 and does not represent a complete set of financial statements and related notes 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 notes 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 24, 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 October 24, 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:   October 24, 2007

 

 

3


(Back To Top)

Section 2: EX-99.1 (EX-99.1)

Exhibit 99.1

 

TCF Financial Corporation

Third Quarter 2007 Investor Presentation

The Convenience Franchise

 

1.)           Corporate Profile

 

At September 30, 2007

 

                                          $15.5 billion financial holding company headquartered in Minnesota

 

                                          39th largest U.S. based bank by asset size

 

                                          449 bank branches, 136 branches opened since January 1, 2002

 

                                          26th largest branch network

 

                                          13 campus alliances; 6th largest in campus card banking relationships

 

                                          1,684 ATMs free to TCF customers; 1,190 off-site

 

                                          12th largest issuer of VISA® Classic debit cards

 

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

 

                                          ROA 1.82%1;  ROE 26.58%1

 

                                          2,429,144 deposit accounts

 

1   Annualized

 

2.)           Corporate Profile

 

         Bank branches located in seven states

 

 

 

At 9/30/07

 

At 1/1/02

 

Traditional

 

192

 

134

 

Supermarket

 

242

 

234

 

Campus

 

15

 

7

 

Total

 

449

 

375

 

 

 

 

 

 

 

 

 

At 9/30/07

 

At 1/1/02

 

Minnesota

 

108

 

88

 

Illinois

 

201

 

179

 

Michigan

 

56

 

57

 

Colorado

 

45

 

13

 

Wisconsin

 

33

 

33

 

Indiana

 

5

 

5

 

Arizona

 

1

 

 

Total

 

449

 

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

                                          1,684 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 3.8 million shares of common stock during the first nine months of 2007 at an average cost of $27.02 per share

 

                                          At 9/30/07, 5.5 million shares remain available to purchase under board authorization

 

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

 

$

 .7275

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend Payout Ratio:

 

28

%

35

%

36

%

35

%

37

%

37

%

43

%

40

%

43

%

48

%

45

%

 

10-year compounded annual growth rate of 15.9% is the 8th highest among the 50 largest banks in the country

 

1   Year-to-date

 

7.)           Return of Net Income to Stockholders

($ millions)

 

 

 

Net
Income

 

Dividends
Paid

 

Stock
Repurchase

 

Total

 

% of Net
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

 

204.0

 

93.8

 

103.0

 

196.8

 

96

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1,184.9

 

$

526.7

 

$

564.0

 

$

1,090.7

 

92

%

% of Net Income

 

 

 

44

%

48

%

92

 

 

 

1  Year-to-date

 

 

 



 

8.)           Consumer Home Equity Lending +12%*

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

9/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

3,588

 

$

4,382

 

$

5,149

 

$

5,883

 

$

6,320

 

 

                *    Twelve-month growth rate

 

9.)           Consumer Home Equity Loans

 

At September 30, 2007

 

                                          79% amortizing loans, 21% lines of credit

 

                                          64% are 1st mortgages, average loan amount of $112,520

 

                                          36% are junior lien positions, average loan amount of $34,004

 

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

 

                                          Average home value of $245,1201

 

                                          Yield 7.40%

 

                                          Over-30-day delinquency rate .62% 2

 

                                          Net charge-offs: 2007 = .30%3, 2006 = .13%, 2005 = .10%

 

                                          Average FICO score at origination of 721

 

1    Based on most recent values known to TCF

2    Excludes non-accrual loans

3   Annualized

 

10.)         Home Equity Characteristics

 

At September 30, 2007

 

                                          No subprime lending programs

 

                                          No 2/28 ARM loans

 

                                          No Option ARM loans

 

                                          No loans originated with teaser rates

 

                                          Variable-rate loans have interest rates tied to the prime rate

 

                                          Over 99% of loans in states with TCF branches

 

11.)         Commercial Lending

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

9/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Business

 

$

429.4

 

$

436.7

 

$

435.2

 

$

552.0

 

$

577.9

 

Commercial Real Estate

 

1,916.7

 

2,154.4

 

2,297.5

 

2,390.7

 

2,402.9

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

2,346

 

$

2,591

 

$

2,733

 

$

2,943

 

$

2,981

 

 

 

 



 

12.)         Commercial Loans

 

At September 30, 2007

 

                                          Commercial real estate

                                          26% retail services

                                          20% apartment loans

                                          16% office buildings

 

                                          Commercial business — $578 million

 

                                          Yield 6.85%

 

                                          Over-30-day delinquency rate .33%1

 

                                          Net charge-offs/(recoveries): 2007 = .06%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 +13%*

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

9/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Leasing and Equipment Finance

 

$

1,162

 

$

1,389

 

$

1,560

 

$

1,899

 

$

2,037

 

 

1     Includes operating leases

*    Twelve-month growth rate

 

14.)         Leasing and Equipment Finance

 

At September 30, 2007

 

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

 

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

 

                                          Diverse equipment types

                                          20% specialty vehicle

                                          18% construction

                                          16% manufacturing

                                          13% medical

                                          4% technology and data processing

 

                                          Yield 7.66%

 

                                          Uninstalled backlog of $292.8 million; up $42.1 million from year-end 2006

 

                                          Over-30-day delinquency rate .80% 1

 

                                          Net charge-offs: 2007 = .12%2, 2006 = .29%

 

1    Excludes non-accrual loans and leases

2    Annualized

 

 

 



 

15.)         Allowance for Loan & Lease Losses

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

9/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan & Lease Losses

 

$

72.5

 

$

75.4

 

$

55.8

 

$

58.5

 

$

74.6

 

Net Charge-offs (NCO)

 

$

19.6

 

$

17.5

 

$

28.2

 

$

18.0

 

$

20.6

 

 

 

 

 

 

 

 

 

 

 

 

 

As a % of Loans & Leases:

 

 

 

 

 

 

 

 

 

 

 

Allowance

 

.87

%

.80

%

.55

%

.52

%

.63

%

NCO

 

.24

%

.20

%

.29

%

.17

%

.24

%1

Coverage Ratio

 

3.7

4.3

2.0

3.3

2.7

X1

 

1   Annualized

 

16.)         Delinquencies (Over 30-Day)1

(Percent)

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

9/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Delinquencies

 

.47

%

.37

%

.43

%

.63

%

.63

%

 

 

 

 

 

 

 

 

 

 

 

 

Delinquencies

 

$

38.7

 

$

34.4

 

$

43.6

 

$

71.7

 

$

74.6

 

 

1   Excludes non-accrual loans and leases

 

17.)         Non-Performing Assets

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

9/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Accrual Loans and Leases

 

$

35.4

 

$

46.9

 

$

29.7

 

$

43.2

 

$

47.2

 

Real Estate Owned

 

33.5

 

17.2

 

17.7

 

22.4

 

43.0

 

Total

 

$

68.9

 

$

64.1

 

$

47.4

 

$

65.6

 

$

90.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Reserves/NAs:

 

205

%

161

%

188

%

136

%

158

%

NPAs/Assets:

 

.61

%

.52

%

.35

%

.45

%

.58

%

 

18.)         Net Charge-Offs by Business Line

 

 

 

 

 

 

 

 

 

YTD1

 

 

 

2004

 

2005

 

2006

 

2007

 

Consumer home equity:

 

 

 

 

 

 

 

 

 

First mortgage lien

 

.08

%

.07

%

.09

%

.21

%

Junior lien

 

.13

 

.16

 

.22

 

.46

 

Total home equity

 

.09

 

.10

 

.13

 

.30

 

Commercial real estate

 

.02

 

 

.01

 

.02

 

Commercial business

 

.04

 

(.51

)

.09

 

.19

 

Leasing and equipment finance

 

.43

 

1.50

.29

 

.12

 

Residential real estate

 

.01

 

.01

 

.04

 

.03

 

Total

 

.20

 

.29

 

.17

 

.24

 

 

1   Annualized

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

 

 

 



 

19.)                           Total Deposits + 5%*

Average Balances

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

9/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of Deposit

 

$

1,744

 

$

1,494

 

$

1,740

 

$

2,291

 

$

2,513

 

Money Market

 

887

 

764

 

641

 

621

 

607

 

Savings

 

2,072

 

1,936

 

2,076

 

2,306

 

2,435

 

Checking

 

3,073

 

3,582

 

4,023

 

4,190

 

4,149

 

Total

 

$

7,776

 

$

7,776

 

$

8,480

 

$

9,408

 

$

9,704

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rate:

 

.73

%

.55

%

1.15

%

2.08

%

2.42

%

 

 

 

 

 

 

 

 

 

 

 

 

# of Accounts
(in thousands):

 

2,150

 

2,216

 

2,296

 

2,427

 

2,429

 

 

*   Twelve month growth rate, excluding Michigan deposits sold

 

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

Average Balances

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

9/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Premier Savings

 

$

 

$

85

 

$

427

 

$

899

 

$

1,128

 

Premier Checking

 

1

 

199

 

642

 

1,001

 

1,064

 

Total

 

$

1

 

$

284

 

$

1,069

 

$

1,900

 

$

2,192

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rate:

 

1.77

%

1.61

%

2.73

%

3.62

%

3.68

%

 

 

 

 

 

 

 

 

 

 

 

 

1-month LIBOR spread:

 

(.56

)

(.11

)

(.65

)

(1.48

)

(1.68

)

 

*   Twelve-month growth rate

 

21.)                           Small Business Deposits +6%*

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

9/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking Deposits

 

$

461

 

$

546

 

$

607

 

$

614

 

$

593

 

Money Market Deposits

 

1

 

17

 

89

 

116

 

173

 

Total

 

$

462

 

$

563

 

$

696

 

$

730

 

$

766

 

 

 

 

 

 

 

 

 

 

 

 

 

# of Accounts:

 

102,607

 

113,979

 

124,145

 

135,861

 

139,323

 

 

*    Twelve-month growth rate, excluding Michigan deposits sold

 

22.)                           Small Business Services and Products

 

At September 30, 2007

 

                                          $594 million in 0% interest checking account deposits

 

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

 

                                          104,092 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

 

 



 

23.)                           Banking Fees and Other Revenue1 +2%*

($ 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

 

109.5

 

Fourth Quarter

 

90.6

 

98.8

 

100.9

 

101.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

360

 

$

394

 

$

394

 

$

411

 

$

314

 

 

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

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

 

24.)                           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

 

25.6

 

Fourth Quarter

 

12.1

 

17.7

 

21.4

 

23.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

53.0

 

$

63.5

 

$

79.8

 

$

92.1

 

$

73.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Vol.:

 

$

3,899

 

$

4,735

 

$

5,673

 

$

6,465

 

$

5,164

 

 

 

 

 

 

 

 

 

 

 

 

Average Interchange Rate:

 

1.34

%

1.30

%

1.34

%

1.35

%

1.36

%1

 

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

1  Year-to-date

 

25.)                           Card Revenue

 

                                          12th largest issuer of VISA® Classic debit cards

 

                                          13th largest issuer of VISA® Commercial debit cards

 

                                          $5.2 billion in sales volume, up 8.1%1

 

                                          19.3 transactions per month on active cards, up 7.4%1

 

1  Year-to-date

 

26.)                           New Branch Expansion

 

27.)                           Total New Branches

 

Branches opened since January 1, 2002

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

12/06

 

9/07

 

12/07 Projected

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supermarket Branches

 

15

 

20

 

31

 

38

 

43

 

47

 

49

 

Traditional and Campus Branches

 

12

 

26

 

45

 

66

 

80

 

89

 

93

 

Total

 

27

 

46

 

76

 

104

 

123

 

136

 

142

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

# of Branches Opened

 

27

 

19

 

30

 

28

 

19

 

14

 

20

 

Percent of Total

 

7

%

11

%

18

%

23

%

27

%

30

%

31

%

 

 



 

 

28.)                           New Traditional Branch Model - Net Income

($ 000s)

 

 

 

Year of Existence

 

 

 

1

 

2

 

3

 

4

 

5

 

6

 

7

 

8

 

9

 

10

 

Net Income1

 

$

(395

)

$

(108

)

$

43

 

$

227

 

$

273

 

$

381

 

$

438

 

$

474

 

$

596

 

$

700

 

 

Traditional branch capital expenditure $3.7 million

1   Includes deposits and consumer lending

 

29.)                           New Branch Total Deposits +17%*

Branches opened since January 1, 2002

($ millions)

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

12/06

 

9/07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

45

 

$

116

 

$

287

 

$

782

 

$

1,076

 

$

1,256

 

 

*    Twelve-month growth rate

 

30.)                           New Branch Total Deposit Accounts +33%*

Branches opened since January 1, 2002

(000s)

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

12/06

 

9/07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit Accounts

 

$

35

 

$

67

 

$

127

 

$

200

 

$

290

 

$

369

 

 

*    Twelve-month growth rate

 

31.)                           New Branch Banking Fees & Other Revenue1 +31%*
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

 

19.7

 

Fourth Quarter

 

.7

 

2.5

 

7.6

 

11.3

 

14.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1.1

 

$

7.2

 

$

24.1

 

$

39.7

 

$

54.8

 

$

53.2

 

 

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

*    Twelve-month growth rate

 

32.)                           Campus Banking

At September 30, 2007

 

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

 

                                          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.

 

                                          124,982 total deposit accounts

 

                                          $231 million in total deposits

 

 



 

33.)                           New Products and Services

 

                                          TCF  Power CheckingSM

 

                                          TCF® CashRewardsSM Card Loyalty Program

 

                                          TCF® Visa® Gift Cards

 

                                          Merchant Gift Cards

 

                                          Electronic Statement Delivery

 

                                          TCF Express Check Conversion

 

                                          TCF Express Remote Deposit

 

                                          Medical Equipment Leasing

 

34.)                           Financial Highlights

 

35.)                           Financial Highlights

($ millions, except per-share data)

 

 

 

Year-to-Date

 

 

 

 

 

2007

 

2006

 

Change

 

Net Interest Income

 

$

410.6

 

$

401.6

 

2.2

%

Fees & Other Revenue:

 

 

 

 

 

 

 

Banking

 

314.4

 

309.4

 

1.6

 

Other

 

51.0

 

57.0

 

(10.5

)

Total Fees and Other Revenue

 

365.4

 

366.4

 

(.3

)

Gains on Sales of Securities Available for Sale

 

2.0

 

 

100.0

 

Gains on Sales of Branches and Real Estate

 

35.2

 

4.2

 

N.M.

 

Total Non-Interest Income

 

402.6

 

370.6

 

8.6

 

Total Revenue

 

$

813.2

 

$

772.2

 

5.3

 

Provision for Credit Losses

 

36.9

 

10.6

 

N.M.

 

Non-Interest Expense

 

489.5

 

483.6

 

1.2

 

Net Income

 

204.0

 

191.2

 

6.7

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

1.62

 

$

1.48

 

 

 

ROA

 

1.82

%

1.83

%

 

 

ROE

 

26.58

%

26.04

%

 

 

 

N.M. Not Meaningful

 

36.)                           Power ProfitsSM

Average Balance ($ millions)

Profit center net income ($ 000s)

 

 

 

 

 

YTD 2007

 

 

 

 

 

Balance 1

 

Net Income

 

%

 

Consumer Lending

 

$

6,098

 

$

26,405

 

14

%

Leasing and Equipment Finance

 

1,885

 

25,690

 

14

 

Commercial Banking

 

2,925

 

13,144

 

7

 

Total Power Assets®

 

$

10,908

 

$

65,239

 

35

%

 

 

 

 

 

 

 

 

Traditional and Campus Branches (207)

 

$

7,520

 

$

62,145

 

34

 

Supermarket Branches (242)

 

2,184

 

28,910

 

16

 

Total Power Liabilities®

 

$

9,704

 

$

91,055

 

50

%

Total Power Assets & Liabilities

 

 

 

156,294

 

85

 

Equity and Other

 

 

 

27,009

 

15

 

Net Income Before Branch Sales

 

 

 

$

183,303

 

100

%

Michigan Branches Sold

 

 

 

20,688

 

 

 

Net Income

 

 

 

$

203,991

 

 

 

 

1    Includes Michigan deposits sold

 

 



 

37.)                           Return to Stockholders1,2 +17%*

 

 

 

 

 

SNL All

 

 

 

Period Ending

 

TCF

 

Bank & Thrift

 

S&P 500

 

6/86

 

$

100.00

 

$

100.00

 

$

100.00

 

9/86

 

$

92.52

 

$

99.94

 

$

94.40

 

9/87

 

$

83.16

 

$

112.29

 

$

135.38

 

9/88

 

$

80.21

 

$

109.09

 

$

118.63

 

9/89

 

$

121.00

 

$

144.45

 

$

157.79

 

9/90

 

$

52.84

 

$

87.76

 

$

143.21

 

9/91

 

$

156.33

 

$

150.84

 

$

187.84

 

9/92

 

$

215.55

 

$

192.09

 

$

208.59

 

9/93

 

$

349.94

 

$

242.52

 

$

235.72

 

9/94

 

$

356.48

 

$

241.10

 

$

244.40

 

9/95

 

$

541.33

 

$

317.76

 

$

317.10

 

9/96

 

$

713.82

 

$

413.57

 

$

381.58

 

9/97

 

$

1,130.44

 

$

657.10

 

$

535.91

 

9/98

 

$

783.86

 

$

721.98

 

$

584.40

 

9/99

 

$

1,157.72

 

$

746.29

 

$

746.88

 

9/00

 

$

1,572.70

 

$

897.91

 

$

846.09

 

9/01

 

$

1,970.22

 

$

851.99

 

$

620.86

 

9/02

 

$

1,853.49

 

$

805.72

 

$

493.67

 

9/03

 

$

2,162.53

 

$

1,041.02

 

$

614.10

 

9/04

 

$

2,806.94

 

$

1,190.35

 

$

699.29

 

9/05

 

$

2,552.53

 

$

1,215.02

 

$

784.97

 

9/06

 

$

2,596.58

 

$

1,463.11

 

$

869.68

 

9/07

 

$

2,682.96

 

$

1,423.58

 

$

1,012.65

 

 

1    Source: SNL Financial, LC and S&P

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

*   Annualized return since June 18, 1986

 

38.)                           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, impact of federal legislation enacted in September 2007 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.

 

 


 


 

39.)         Appendix

 

40.)         Diluted EPS

 

 

 

1997

 

1998

 

1999

 

2000

 

2001

 

2002

 

2003

 

2004

 

2005

 

2006

 

2007 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

.84

 

$

.88

 

$

1.00

 

$

1.17

 

$

1.35

 

$

1.58

 

$

1.53

 

$

1.86

 

$

2.00

 

$

1.90

 

$

1.62

 

 

1  Year-to-date

 

41.)         Net Income

($ millions)

 

 

 

2003

 

2004

 

2005

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

59.1

 

Fourth Quarter

 

59.5

 

67.4

 

65.5

 

53.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

216

 

$

255

 

$

265

 

$

245

 

$

204

 

 

42.)         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

 

137.7

 

Fourth Quarter

 

119.1

 

126.5

 

129.3

 

135.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

481

 

$

492

 

$

518

 

$

538

 

$

411

 

Net Interest Margin:

 

4.54

%

4.54

%

4.46

%

4.16

%

3.97

%1

 

1 Year-to-date (annualized)

 

43.)         Risk-Based Capital

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

9/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Actual

 

$

842

 

$

959

 

$

1,050

 

$

1,173

 

$

1,207

 

Well Capitalized Requirement

 

$

785

 

$

881

 

$

983

 

$

1,057

 

$

1,117

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1:

 

9.75

%

9.12

%

8.79

%

8.65

%

8.34

%

Total:

 

10.73

%

10.88

%

10.68

%

11.10

%

10.80

%

Target (10.6%):

 

$

824

 

$

934

 

$

1,042

 

$

1,120

 

$

1,185

 

Excess RBC:

 

$

57

 

$

77

 

$

67

 

$

116

 

$

90

 

Excess Over Target:

 

$

18

 

$

25

 

$

8

 

$

53

 

$

22

 

 

 

 



 

44.)         Power Asset Geographic Profile

($ 000s)

 

At September 30, 2007:

 

Consumer
Home Equity
& Other

 

Commercial
Real Estate
& Commercial
Business

 

Leasing &
Equipment
Finance

 

Total

 

Minnesota

 

$

2,436,706

 

$

789,864

 

$

69,402

 

$

3,295,972

 

Illinois

 

1,970,947

 

650,957

 

68,530

 

2,690,434

 

Michigan

 

1,090,204

 

823,838

 

83,946

 

1,997,988

 

Wisconsin

 

500,135

 

421,805

 

36,484

 

958,424

 

Colorado

 

318,219

 

48,787

 

33,315

 

400,321

 

California

 

2,527

 

19,431

 

259,762

 

281,720

 

Florida

 

6,923

 

42,962

 

136,651

 

186,536

 

Texas

 

501

 

2,504

 

121,861

 

124,866

 

Arizona

 

11,848

 

14,803

 

83,786

 

110,437

 

Indiana

 

21,732

 

20,391

 

33,535

 

75,658

 

Other

 

27,208

 

145,534

 

1,039,064

 

1,211,806

 

Total

 

$

6,386,950

 

$

2,980,876

 

$

1,966,336

 

$

11,334,162

 

 

45.)         Consumer Home Equity and Commercial Loans

Quarterly Average Balances

($ millions)

 

 

 

9/30/07

 

9/30/06

 

Change

Inc./(Dec.)

$

 

%

 

Consumer Home Equity:

 

 

 

 

 

 

 

 

 

Fixed-rate

 

$

4,751

 

$

4,028

 

$

723

 

18

%

Yield

 

6.99

%

6.87

%

12

bps

 

 

Variable-rate

 

$

1,456

 

$

1,585

 

$

(129

)

(8

)%

Yield

 

8.67

%

8.91

%

(24

)bps

 

 

 

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

Fixed- and adjustable-rate

 

$

1,957

 

$

1,842

 

$

115

 

6

%

Yield

 

6.43

%

6.29

%

14

bps

 

 

Variable-rate

 

$

980

 

$

1,113

 

$

(133

)

(12

)%

Yield

 

7.72

%

7.84

%

(12

)bps

 

 

 

46.)         Customer Payment Activity

Transaction Volume

(# millions)

 

 

 

2007 1

 

2006 1

 

% Increase/
Decrease

 

Checks/ACH

 

88.3

 

95.9

 

(7.9

)%

ATM

 

23.4

 

24.8

 

(5.6

)%

Debit Card Purchases

 

141.7

 

131.0

 

8.2

%

 

1   YTD 3Q07 vs. YTD 3Q06

 

 



 

47.)         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 stockholders 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, 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.

 

48.)         Glossary of Terms (continued)

 

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.

 

49.)         Source References

 

Slide: Corporate Profile

39th largest U.S. bank - CapitalBridge; 6/30/07

26th largest branch network - SNL Financial, LC; 3Q07

6th largest in campus card relationships - CR80News 2006 Banking Partner Survey     

12th largest issuer of Visa Classic - VISA; 2Q07; ranked by sales volume

18th largest bank-owned leasing company - The Monitor; Jul/Aug 2007

 

Slide: Dividend History

10-year compounded annual growth rate - CapitalBridge

 

Slide: Leasing and Equipment Finance

18th largest bank-owned leasing company - The Monitor; Jul/Aug 2007

37th largest leasing company - The Monitor; 2007 Monitor 100

 

Slide: Card Revenue

12th largest issuer of Visa Classic - VISA; 2Q07; ranked by sales volume

13th largest issuer of Visa Commercial - VISA; 2Q07; ranked by sales volume

 

Slide: Campus Banking

6th largest in campus card relationships - CR80News 2006 Banking Partner Survey

 

Slide: Return to Stockholders

Return to Stockholders - SNL Financial, LC and S&P

 


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