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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): January 25, 2008

 


 

 

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 fourth 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 January 25, 2008, 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 fourth 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 January 25, 2008, 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 January 25, 2008

 

 

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:    January 25, 2008

 

3


(Back To Top)

Section 2: EX-99.1 (EX-99.1)

Exhibit 99.1

 

TCF Financial Corporation

Fourth Quarter 2007 Investor Presentation

The Convenience Franchise

 

1.)                                 Corporate Profile

 

At December 31, 2007

 

 

 

·

 

$16 billion financial holding company headquartered in Minnesota

 

 

 

 

 

 

 

 

 

·

36th largest U.S. based bank by asset size

 

 

 

 

 

 

 

·

 

453 bank branches, 141 branches opened since January 1, 2002

 

 

 

 

 

 

 

 

 

·

25th largest branch network

 

 

 

 

 

 

 

 

 

·

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

 

 

 

 

 

 

 

·

 

1,663 ATMs free to TCF customers; 1,163 off-site

 

 

 

 

 

 

 

·

 

12th largest issuer of Visa® Classic debit cards

 

 

 

 

 

 

 

·

 

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

 

 

 

 

 

 

 

·

 

ROA 1.76%; ROE 25.82%

 

2.)                                 Corporate Profile

 

 

 

·

 

Bank branches located in seven states

 

 

 

At 12/31/07

 

At 1/1/02

 

Traditional

 

194

 

134

 

Supermarket

 

244

 

234

 

Campus

 

15

 

7

 

Total

 

453

 

375

 

 

 

 

 

 

 

 

 

At 12/31/07

 

At 1/1/02

 

Minnesota

 

109

 

88

 

Illinois

 

202

 

179

 

Michigan

 

56

 

57

 

Colorado

 

46

 

13

 

Wisconsin

 

31

 

33

 

Indiana

 

5

 

5

 

Arizona

 

4

 

 

Total

 

453

 

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

 

 

 

 

·

1,663 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.)                                  What Makes TCF Different

 

 

 

·

 

No teaser rate subprime lending programs

 

 

 

 

 

 

 

·

 

No 2/28 ARM loans

 

 

 

 

 

 

 

·

 

No Option ARM loans

 

 

 

 

 

 

 

·

 

No asset-backed commercial paper

 

 

 

 

 

 

 

·

 

No asset-backed securities secured by credit cards or car loans

 

 

 

 

 

 

 

·

 

TCF does not participate in Structured Investment Vehicles or other off-balance sheet investment programs

 

6.)                                 Share Repurchase Program

 

 

 

·

 

Repurchased 3.9 million shares of common stock during 2007 at an average cost of $26.92 per share

 

 

 

 

 

 

 

·

 

At 12/31/07, 5.4 million shares remain available to purchase under board authorization

 

7.)                                  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

 

$

.97

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend Payout Ratio:

 

28

%

35

%

36

%

35

%

37

%

37

%

43

%

40

%

43

%

48

%

46

%

 

10-year compounded annual growth rate of 15.3% is the 9th highest among the 50 largest banks in the country

 

8.)                                  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

 

2007

 

266.8

 

124.5

 

105.3

 

229.8

 

86

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1,247.7

 

$

557.4

 

$

566.3

 

$

1,123.7

 

90

%

% of Net Income

 

 

 

45

%

45

%

90

%

 

 

 



 

9.)                                  Consumer Home Equity Lending +11%*

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

12/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

3,588

 

$

4,382

 

$

5,149

 

$

5,883

 

$

6,523

 

 

*   Annual growth rate (’07 vs. ’06)

 

10.)                           Consumer Home Equity Loans

 

At December 31, 2007

 

 

 

·

78% amortizing loans, 22% lines of credit

 

 

 

 

 

 

·

64% are 1st mortgages, average loan amount of $113,844

 

 

 

 

 

 

·

36% are junior lien positions, average loan amount of $34,570

 

 

 

 

 

 

·

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

 

 

 

 

 

 

·

Average home value of $247,8341

 

 

 

 

 

 

·

Yield 7.35%

 

 

 

 

 

 

·

Over-30-day delinquency rate .68%2

 

 

 

 

 

 

·

Net charge-offs: 2007 = .33%, 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

 



 

11.)                           Commercial Lending +6%*

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

12/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Business

 

$

429.4

 

$

436.7

 

$

435.2

 

$

552.0

 

$

558.3

 

Commercial Real Estate

 

1,916.7

 

2,154.4

 

2,297.5

 

2,390.7

 

2,557.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

2,346

 

$

2,591

 

$

2,733

 

$

2,943

 

$

3,116

 

 

*   Annual growth rate (’07 vs. ’06)

 

12.)                           Commercial Loans

 

At December 31, 2007

 

 

 

·

Commercial real estate

 

 

 

·

27% retail services

 

 

 

·

20% apartment loans

 

 

 

·

15% office buildings

 

 

 

 

 

 

·

Commercial business — $558 million

 

 

 

 

 

 

·

Yield 6.79%

 

 

 

 

 

 

·

Over-30-day delinquency rate .40%1

 

 

 

 

 

 

·

Net charge-offs: 2007 = .12%, 2006 = .02%

 

 

 

 

 

 

·

Approximately 98% of all commercial loans secured

 

 

 

 

 

 

·

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

 

1   Excludes non-accrual loans

 



 

13.)                           Leasing and Equipment Finance1 +15%*

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

12/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Leasing and Equipment Finance

 

$

1,162

 

$

1,389

 

$

1,560

 

$

1,899

 

$

2,175

 

 

1   Includes operating leases

*   Annual growth rate (’07 vs. ’06)

 

14.)                           Leasing and Equipment Finance

 

At December 31, 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 vehicles

 

 

 

·

18% construction

 

 

 

·

17% manufacturing

 

 

 

·

13% medical

 

 

 

·

11% technology and data processing

 

 

 

 

 

 

·

Yield 7.70%

 

 

 

 

 

 

·

Uninstalled backlog of $292.5 million; up $42.8 million from year-end 2006

 

 

 

 

 

 

·

Over-30-day delinquency rate .75% 1

 

 

 

 

 

 

·

Net charge-offs: 2007 = .20%, 2006 = .29%,

 

1   Excludes non-accrual loans and leases

 

15.)                           Allowance for Loan & Lease Losses

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

12/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan & Lease Losses

 

$

72.5

 

$

75.4

 

$

55.8

 

$

58.5

 

$

80.9

 

Net Charge-offs (NCO)

 

$

19.6

 

$

17.5

 

$

28.2

 

$

18.0

 

$

34.6

 

 

 

 

 

 

 

 

 

 

 

 

 

As a % of Loans & Leases:

 

 

 

 

 

 

 

 

 

 

 

Allowance

 

.87

%

.80

%

.55

%

.52

%

.66

%

NCO

 

.24

%

.20

%

.29

%

.17

%

.30

%

Coverage Ratio

 

3.7

X

4.3

X

2.0

3.3

X

2.3

 

16.)                           Delinquencies (Over 30-Day)1

(Percent)

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

12/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Delinquencies

 

.47

%

.37

%

.43

%

.63

%

.67

%

 

 

 

 

 

 

 

 

 

 

 

 

Delinquencies

 

$

38.7

 

$

34.4

 

$

43.6

 

$

71.7

 

$

82.6

 

 

1   Excludes non-accrual loans and leases

 

17.)                           Non-Performing Assets

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

12/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Accrual Loans & Leases

 

$

35.4

 

$

46.9

 

$

29.7

 

$

43.2

 

$

59.8

 

Real Estate Owned

 

33.5

 

17.2

 

17.7

 

22.4

 

45.8

 

Total

 

$

68.9

 

$

64.1

 

$

47.4

 

$

65.6

 

$

105.6

 

 

 

 

 

 

 

 

 

 

 

 

 

Reserves/NAs:

 

205

%

161

%

188

%

136

%

135

%

NPAs/Assets:

 

.61

%

.52

%

.35

%

.45

%

.66

%

 



 

18.)                           Net Charge-Offs by Business Line

 

 

 

2004

 

2005

 

2006

 

2007

 

Consumer home equity:

 

 

 

 

 

 

 

 

 

First mortgage lien

 

.08

%

.07

%

.09

%

.24

%

Junior lien

 

.13

 

.16

 

.22

 

.50

 

Total home equity

 

.09

 

.10

 

.13

 

.33

 

Commercial real estate

 

.02

 

 

.01

 

.10

 

Commercial business

 

.04

 

(.51

)

.09

 

.22

 

Leasing and equipment finance

 

.43

 

1.50

 

.29

 

.20

 

Residential real estate

 

.01

 

.01

 

.04

 

.04

 

Total

 

.20

 

.29

 

.17

 

.30

 

 

 

19.)                           Total Deposits + 5%*

Average Balances

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

12/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of Deposit

 

$

1,744

 

$

1,494

 

$

1,740

 

$

2,291

 

$

2,461

 

Money Market

 

887

 

764

 

641

 

621

 

605

 

Savings

 

2,072

 

1,936

 

2,076

 

2,306

 

2,475

 

Checking

 

3,073

 

3,582

 

4,023

 

4,190

 

4,107

 

Total

 

$

7,776

 

$

7,776

 

$

8,480

 

$

9,408

 

$

9,648

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rate:

 

.73

%

.55

%

1.15

%

2.08

%

2.39

%

 

*   Annual growth rate (’07 vs. ’06), excluding Michigan deposits sold

 

20.)                           Premier Checking & Savings Deposits + 18%*

Average Balances

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

12/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Premier Savings

 

$

 

$

85

 

$

427

 

$

899

 

$

1,184

 

Premier Checking

 

1

 

199

 

642

 

1,001

 

1,055

 

Total

 

$

1

 

$

284

 

$

1,069

 

$

1,900

 

$

2,239

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rate:

 

1.77

%

1.61

%

2.73

%

3.62

%

3.60

%

 

 

 

 

 

 

 

 

 

 

 

 

1-month LIBOR spread:

 

(.56

)

(.11

)

(.65

)

(1.48

)

(1.65

)

 

*   Annual growth rate (07 vs. 06)

 



 

21.)                           Small Business Deposits +5%*

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

12/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking Deposits

 

$

461

 

$

546

 

$

607

 

$

614

 

$

586

 

Money Market Deposits

 

1

 

17

 

89

 

116

 

168

 

Total

 

$

462

 

$

563

 

$

696

 

$

730

 

$

754

 

 

 

 

 

 

 

 

 

 

 

 

 

# of Accounts:

 

102,607

 

113,979

 

124,145

 

135,861

 

138,979

 

 

*   Annual growth rate (07 vs. 06), excluding Michigan deposits sold

 

22.)                           Small Business Services and Products

 

At December 31, 2007

 

 

·

 

$586 million in 0% interest checking account deposits

 

 

 

 

 

·

 

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

 

 

 

 

 

·

 

104,179 TCF Business Check Cards SM

 

 

 

 

 

·

 

TCF Miles Plus Business Check Card SM loyalty program

 

 

 

 

 

·

 

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

 

23.)                           Banking Fees and Other Revenue1 +3%*

($ 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

 

108.4

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

360

 

$

394

 

$

394

 

$

411

 

$

423

 

 

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

*   Annual growth rate (’07 vs. ’06)

 

24.)                           Card Revenue +7%*

($ 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

 

25.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

53.0

 

$

63.5

 

$

79.8

 

$

92.1

 

$

98.9

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Vol.:

 

$

3,899

 

$

4,735

 

$

5,673

 

$

6,465

 

$

6,949

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Interchange Rate:

 

1.34

%

1.30

%

1.34

%

1.36

%

1.35

%

 

*   Annual growth rate (’07 vs. ’06)

 

25.)                           Card Revenue

 

 

·

 

12th largest issuer of Visa® Classic debit cards

 

 

 

 

 

·

 

13th largest issuer of Visa® Commercial debit cards

 

 

 

 

 

·

 

$6.9 billion in sales volume, up 7.5%1

 

 

 

 

 

·

 

19.4 transactions per month on active cards, up 6.6%1

 

1   Annual growth rate (’07 vs. ’06)

 



 

26.)                           New Branch Expansion

 

27.)                           Total New Branches

Branches opened since January 1, 2002

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2008

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

12/06

 

12/07

 

Plan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supermarket Branches

 

15

 

20

 

31

 

38

 

43

 

48

 

53

 

Traditional and Campus Branches

 

12

 

26

 

45

 

66

 

80

 

93

 

98

 

Total

 

27

 

46

 

76

 

104

 

123

 

141

 

151

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

# of Branches Opened

 

27

 

19

 

30

 

28

 

19

 

19

 

10

 

Percent of Total

 

7

%

11

%

18

%

23

%

27

%

31

%

33

%

 

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 +18%*

Branches opened since January 1, 2002

($ millions)

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

12/06

 

12/07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

45

 

$

116

 

$

287

 

$

782

 

$

1,072

 

$

1,267

 

 

*   Annual growth rate (‘07 vs. ‘06)

 

30.)                           New Branch Banking Fees & Other Revenue1 +34%*

Branches opened since January 1, 2002

($ millions)

 

 

 

2002

 

2003

 

2004

 

2005

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

 

$

1.0

 

$

3.4

 

$

7.6

 

$

11.6

 

$

14.9

 

Second Quarter

 

.1

 

1.6

 

6.1

 

9.9

 

14.2

 

18.5

 

Third Quarter

 

.3

 

2.1

 

7.0

 

10.9

 

14.8

 

19.6

 

Fourth Quarter

 

.7

 

2.5

 

7.6

 

11.3

 

14.2

 

20.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1.1

 

$

7.2

 

$

24.1

 

$

39.7

 

$

54.8

 

$

73.2

 

 

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

*   Annual growth rate (‘07 vs. ‘06)

 

31.)                           Campus Banking

 

At December 31, 2007

 

·

 

Alliances with the Universities of Minnesota, Michigan and Illinois plus nine 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.

 

 

 

·

 

$206 million in total deposits

 



 

32.)                           New Products and Services

 

·

 

TCF Power CheckingSM

 

 

 

·

 

TCF CashRewardsSM Card Loyalty Program

 

 

 

·

 

TCF® Visa® Gift Cards

 

 

 

·

 

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)

 

 

 

2007

 

2006

 

Change

 

Net Interest Income

 

$

550.2

 

$

537.5

 

2.4

%

Fees & Other Revenue:

 

 

 

 

 

 

 

Banking

 

422.9

 

410.7

 

3.0

 

Other

 

67.4

 

74.6

 

(9.7

)

Total Fees and Other Revenue

 

490.3

 

485.3

 

1.0

 

Gains on Sales of Securities Available for Sale

 

13.3

 

 

100.0

 

Gains on Sales of Branches and Real Estate

 

37.9

 

4.2

 

N.M.

 

Total Non-Interest Income

 

541.5

 

489.5

 

10.6

 

Total Revenue

 

1,091.7

 

1027.0

 

6.3

 

Provision for Credit Losses

 

57.0

 

20.7

 

175.5

 

Non-Interest Expense

 

662.1

 

649.2

 

2.0

 

Net Income

 

$

266.8

 

$

244.9

 

8.9

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

2.12

 

$

1.90

 

 

 

ROA

 

1.76

%

1.74

%

 

 

ROE

 

25.82

%

24.37

%

 

 

 

N.M. Not Meaningful

 

35.)                           Significant Financial Items

Impact on Diluted EPS

($)

 

 

 

2007

 

2006

 

Asset sales:

 

 

 

 

 

Michigan branches

 

$

.16

 

$

 

Securities available for sale

 

.07

 

 

Land and buildings

 

.03

 

.02

 

Mortgage servicing rights

 

 

.01

 

Visa indemnification

 

(.04

)

 

Income tax adjustments

 

.15

 

.05

 

Total impact on diluted EPS

 

$

.37

 

$

.08

 

 

36.)                           Power ProfitsSM

Average Balance ($ millions)

Profit center net income ($ 000s)

 

 

 

 

 

2007

 

 

 

 

 

Balance 1

 

Net Income

 

%

 

Consumer Lending

 

$

6,189

 

$

32,940

 

14

%

Leasing and Equipment Finance

 

1,916

 

34,576

 

14

 

Commercial Banking

 

2,949

 

17,761

 

7

 

Total Power Assets®

 

$

11,054

 

$

85,277

 

35

%

 

 

 

 

 

 

 

 

Traditional and Campus Branches (209)

 

$

7,476

 

$

83,661

 

34

 

Supermarket Branches (244)

 

2,172

 

37,535

 

15

 

Total Power Liabilities®

 

$

9,648

 

$

121,196

 

49

%

Total Power Assets & Liabilities

 

 

 

206,473

 

84

 

Equity and Other

 

 

 

39,647

 

16

 

Net Income Before Branch Sales

 

 

 

$

246,120

 

100

%

Michigan Branches Sold

 

 

 

20,688

 

 

 

Net Income

 

 

 

$

266,808

 

 

 

 

1    Includes Michigan deposits sold



 

37.)                           Return to Stockholders1 +15%*

 

 

 

 

 

SNL All

 

 

 

Period Ending

 

TCF

 

Bank & Thrift

 

S&P 500

 

6/86

 

$

100.00

 

$

100.00

 

$

100.00

 

12/86

 

$

90.64

 

$

98.99

 

$

99.13

 

12/87

 

$

51.41

 

$

80.09

 

$

104.33

 

12/88

 

$

67.65

 

$

105.92

 

$

121.66

 

12/89

 

$

106.25

 

$

129.80

 

$

160.20

 

12/90

 

$

63.04

 

$

99.21

 

$

155.23

 

12/91

 

$

164.60

 

$

169.66

 

$

202.52

 

12/92

 

$

251.25

 

$

228.47

 

$

217.95

 

12/93

 

$

300.96

 

$

240.80

 

$

239.92

 

12/94

 

$

375.92

 

$

232.63

 

$

243.09

 

12/95

 

$

618.92

 

$

354.47

 

$

334.44

 

12/96

 

$

829.16

 

$

484.74

 

$

411.22

 

12/97

 

$

1,318.55

 

$

759.31

 

$

548.42

 

12/98

 

$

960.32

 

$

806.13

 

$

705.15

 

12/99

 

$

1,014.67

 

$

802.04

 

$

853.53

 

12/00

 

$

1,872.69

 

$

970.56

 

$

775.82

 

12/01

 

$

2,064.57

 

$

972.36

 

$

683.61

 

12/02

 

$

1,925.98

 

$

912.76

 

$

532.53

 

12/03

 

$

2,330.04

 

$

1,228.13

 

$

685.28

 

12/04

 

$

2,996.34

 

$

1,360.69

 

$

759.85

 

12/05

 

$

2,610.37

 

$

1,387.53

 

$

797.18

 

12/06

 

$

2,732.33

 

$

1,629.17

 

$

923.08

 

12/07

 

$

1,856.90

 

$

1,067.12

 

$

973.80

 

 

1    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 new 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 possible increases in indemnification obligations for certain litigation against Visa, (“covered litigation”) and potential reductions in card revenues resulting from other litigation 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

.84

 

$

.88

 

$

1.00

 

$

1.17

 

$

1.35

 

$

1.58

 

$

1.53

 

$

1.86

 

$

2.00

 

$

1.90

 

$

2.12

 

 

41.)                           Risk-Based Capital

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

12/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Actual

 

$

842

 

$

959

 

$

1,050

 

$

1,173

 

$

1,246

 

Target (10.6%):

 

$

824

 

$

934

 

$

1,042

 

$

1,120

 

$

1,235

 

Well Capitalized Requirement

 

$

785

 

$

881

 

$

983

 

$

1,057

 

$

1,165

 

Tier 1:

 

9.75%

 

9.12%

 

8.79%

 

8.65%

 

8.28%

 

Total:

 

10.73%

 

10.88%

 

10.68%

 

11.10%

 

10.70%

 

Excess RBC:

 

$

57

 

$

77

 

$

67

 

$

116

 

$

81

 

 



 

42.)                           Power Asset Geographic Profile

($ 000s)

 

At December  31, 2007:

 

Consumer
Home Equity
& Other

 

Commercial
Real Estate
& Commercial
Business

 

Leasing and
Equipment
Finance

 

Total

 

Minnesota

 

$

2,496,369

 

$

779,130

 

$

74,024

 

$

3,349,523

 

Illinois

 

2,040,795

 

715,096

 

73,303

 

2,829,194

 

Michigan

 

1,113,823

 

896,157

 

89,152

 

2,099,132

 

Wisconsin

 

510,246

 

431,462

 

39,497

 

981,205

 

Colorado

 

354,001

 

68,884

 

34,909

 

457,794

 

California

 

2,496

 

19,307

 

270,003

 

291,806

 

Florida

 

7,502

 

52,171

 

135,750

 

195,423

 

Texas

 

498

 

2,482

 

132,504

 

135,484

 

Arizona

 

13,957

 

14,625

 

87,298

 

115,880

 

Indiana

 

22,406

 

23,767

 

35,331

 

81,504

 

Other

 

28,538

 

112,574

 

1,132,572

 

1,273,684

 

Total

 

$

6,590,631

 

$

3,115,655

 

$

2,104,343

 

$

11,810,629

 

 

43.)                           Consumer Home Equity and Commercial Loans

Quarterly Average Balances

($ millions)

 

 

 

12/31/07

 

12/31/06

 

Change
Inc./(Dec.)
$

%

 

Consumer Home Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-rate

 

$

4,889

 

$

4,293

 

$

596

 

14

%

 

Yield

 

 

6.98

%

 

6.92

%

 

6

bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable-rate

 

$

1,522

 

$

1,503

 

$

19

 

1

%

 

Yield

 

 

7.98

%

 

8.88

%

 

(90

)bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed- and adjustable-rate

 

$

2,019

 

$

1,871

 

$

148

 

8

%

 

Yield

 

 

6.42

%

 

6.51

%

 

(9

)bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable-rate

 

$

1,001

 

$

1,077

 

$

(76

)

(7

)%

 

Yield

 

 

7.02

%

 

7.77

%

 

(75

)bps

 

 

 

 

44.)                           Customer Payment Activity

Transaction Volume

(# millions)

 

 

 

2007

 

2006

 

% Increase/
Decrease

 

Checks/ACH

 

117.1

 

127.4

 

(8.1

)%

ATM

 

30.7

 

32.6

 

(5.8

)%

Debit Card Purchases

 

191.6

 

177.1

 

8.2

%

 



 

45.)                           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.

 

46.)                           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.

 

47.)                           Source References

 

Slide: Corporate Profile

36th largest U.S. bank - CapitalBridge; 9/30/07

25th largest branch network - SNL Financial, LC; 4Q07

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

12th largest issuer of Visa Classic - Visa; 3Q07; 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; 3Q07; ranked by sales volume

13th largest issuer of Visa Commercial - Visa; 3Q07; 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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