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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 23, 2008

 


 

 

TCF FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

 


 

Delaware

 

001-10253

 

41-1591444

(State of other jurisdiction of

 

(Commission File Number)

 

(IRS Employer Identification No.)

incorporation)

 

 

 

 

 

200 Lake Street East, Mail Code EX0-03-A, Wayzata, Minnesota 55391-1693

(Address of principal executive offices) (Zip Code)

 

(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 2008 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 23, 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 third quarter of 2008 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 23, 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.

 

(d)         Exhibits.

 

Exhibit No.

 

Description

 

 

 

99.1

 

Investor Presentation of TCF Financial Corporation,
dated October 23, 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 hereunto duly authorized.

 

 

TCF FINANCIAL CORPORATION

 

 

 

 

 

/s/ William A. Cooper

 

William A. Cooper,

Chairman and Chief Executive Officer

(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)

 

Date:       October 23, 2008

 

 

3

 

 

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

Exhibit 99.1

 

TCF Financial Corporation

Third Quarter 2008 Investor Presentation

The Convenience Franchise

 

1.)           Corporate Profile

 

At September 30, 2008

 

·                                          $16.5 billion financial holding company headquartered in Minnesota

 

·                                          34th largest U.S. based bank by asset size

 

·                                          445 bank branches, 112 branches opened since January 1, 2003

 

·                                          25th largest branch network

 

·                                          11 campus alliances; 6th largest in campus card banking relationships

 

·                                          1,636 ATMs free to TCF customers; 1,149 off-site

 

·                                          12th largest issuer of Visa® Classic debit cards

 

·                                          17th largest bank-affiliated equipment finance/leasing company in the U.S.

 

·                                          Total risk-based capital of 11.93%;  $234 million over risk-based well capitalized requirement

 

·                                          Tier 1 risk-based capital of 9.03%

 

2.)           Corporate Profile

 

·                                          Bank branches located in seven states

 

 

 

At 9/30/08

 

Traditional

 

196

 

Supermarket

 

234

 

Campus

 

15

 

Total

 

445

 

 

 

 

 

 

 

At 9/30/08

 

Minnesota

 

109

 

Illinois

 

206

 

Michigan

 

56

 

Colorado

 

36

 

Wisconsin

 

27

 

Arizona

 

6

 

Indiana

 

5

 

Total

 

445

 

 

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

·                                          1,636 free ATMs

·                                          Free debit cards

·                                          No purchase-fee gift cards

·                                          Free coin counting

·                                          TCF Totally Free Online banking

 


 

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 or subprime lending programs

 

·                                          No 2/28 ARM loans

 

·                                          No Option ARM loans

 

·                                          No asset-backed commercial paper

 

·                                          No Freddie Mac or Fannie Mae preferred stock

 

·                                          No exposure to Lehman Brothers

 

·                                          No auto lease portfolio

 

·                                          No derivatives

 

6.)           Risk-Based Capital

$234 million excess over well capitalized requirement

($ millions)

 

 

 

12/04

 

12/05

 

12/06

 

12/07

 

9/08

 

 

 

 

 

 

 

 

 

 

 

 

 

Actual

 

$

959

 

$

1,050

 

$

1,173

 

$

1,246

 

$

1,447

 

Target (10.6%):

 

$

934

 

$

1,042

 

$

1,120

 

$

1,235

 

$

1,286

 

Well Capitalized Requirement

 

$

881

 

$

983

 

$

1,057

 

$

1,165

 

$

1,213

 

Tier 1:

 

9.12

%

8.79

%

8.65

%

8.28

%

9.03

%

Total:

 

10.88

%

10.68

%

11.10

%

10.70

%

11.93

%

Excess RBC:

 

$

77

 

$

67

 

$

116

 

$

81

 

$

234

 

 

7.)           TCF Issues Trust Preferred Securities

 

·                                          Issued $115 million of non-dilutive, trust preferred securities on August 19, 2008

 

·                                          Fixed interest rate of 10.75%

 

·                                          Maturity date - August 15, 2068

 

·                                          Redeemable at TCF’s option beginning on August 15, 2013

 

·                                          Proceeds will be used for general corporate purposes, including balance sheet growth

 

·                                          Tier 1 capital increased from 8.08% at June 30, 2008 to 9.03% at September 30, 2008

 

·                                          Total risk-based capital increased from 10.86% at June 30, 2008 to 11.93% at September 30, 2008

 

8.)           Dividend History

 

 

 

1998

 

1999

 

2000

 

2001

 

2002

 

2003

 

2004

 

2005

 

2006

 

2007

 

2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends Paid

 

$

.31

 

$

.36

 

$

.41

 

$

.50

 

$

.58

 

$

.65

 

$

.75

 

$

.85

 

$

.92

 

$

.97

 

$

.75

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend Payout Ratio:

 

35

%

36

%

35

%

37

%

37

%

43

%

40

%

43

%

48

%

46

%

93

%

 

10-year compounded annual growth rate of 13.2% is the 10th highest among the 50 largest banks in the country

 

1                   Year-to-date

 


 

9.)           Return of Net Income to Stockholders

($ millions)

 

 

 

Net

Income

 

Dividends

Paid

 

Stock

Repurchase

 

Total

 

% of Net

Income

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

2008 1

 

101.3

 

94.8

 

 

94.8

 

94

 

Total

 

$

1,133.1

 

$

559.2

 

$

415.9

 

$

975.1

 

86

%

% of Net Income

 

 

 

49

%

37

%

86

%

 

 

 

1                   Year-to-date

 

10.)         Liquidity and Borrowing Capacity

 

·                                          In addition to the $9.9 billion deposit base provided by TCF’s retail franchise, TCF has borrowing capacity from a variety of sources:

 

·                                          $2 billion in secured borrowing capacity at the Federal Home Loan Bank of Des Moines

 

·                                          $1.1 billion in unsecured and uncommitted available lines

 

·                                          $630 million of secured borrowing capacity at the Federal Reserve Discount Window

 

11.)         Home Equity Lending +8%*

64% are 1st mortgages

($ millions)

 

 

 

12/04

 

12/05

 

12/06

 

12/07

 

9/08

 

 

 

 

 

 

 

 

 

 

 

 

 

1st Mortgages

 

$

2,894

 

$

3,376

 

$

3,782

 

$

4,179

 

$

4,401

 

Junior Liens

 

1,488

 

1,773

 

2,101

 

2,344

 

2,427

 

Total

 

$

4,382

 

$

5,149

 

$

5,883

 

$

6,523

 

$

6,828

 

 

*                 Twelve-month growth rate

 

12.)         Home Equity Loans

 

At September 30, 2008

 

·                                          64% 1st mortgages, average loan amount of $116,311

 

·                                          36% junior lien positions, average loan amount of $35,296

 

·                                          76% amortizing loans, 24% lines of credit

 

·                                          74% fixed rate, 26% variable rate (prime based)

 

·                                          67% of variable rate loans are at their interest rate floor 1

 

·                                          Average home value of $254,308 2

 

·                                          Yield 6.76%

 

·                                          Over-30-day delinquency rate 1.34% 3

 

·                                          Net charge-offs: 2008 = .81% 4, 2007 = .33%, 2006 = .13%

 

·                                          Average FICO score at origination of 723

 

1                   At October 1, 2008

2                   Based on most recent values known to TCF

3                   Excludes non-accrual loans

4                   Annualized

 


 

13.)         Commercial Lending +14%*

($ millions)

 

 

 

12/04

 

12/05

 

12/06

 

12/07

 

9/08

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Business

 

$

436.7

 

$

435.2

 

$

552.0

 

$

558.3

 

$

549.3

 

Commercial Real Estate

 

2,154.4

 

2,297.5

 

2,390.7

 

2,557.3

 

2,852.8

 

Total

 

$

2,591

 

$

2,733

 

$

2,943

 

$

3,116

 

$

3,402

 

 

*                 Twelve-month growth rate

 

14.)         Commercial Loans

 

At September 30, 2008

 

·                                          Commercial real estate

·                                          28% retail services

·                                          20% apartment loans

·                                          15% office buildings

 

·                                          Commercial business – $549 million

 

·                                          Yield 5.92%

 

·                                          Over-30-day delinquency rate .49% 1

 

·                                          Net charge-offs: 2008 = .49% 2, 2007 = .12%

 

·                                          Approximately 98% of all commercial loans secured

 

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

 

1                   Excludes non-accrual loans

2                   Annualized

 

15.)         Leasing and Equipment Finance 1 +17%*

($ millions)

 

 

 

12/04

 

12/05

 

12/06

 

12/07

 

9/08

 

 

 

 

 

 

 

 

 

 

 

Leasing and Equipment Finance

 

$

1,389

 

$

1,560

 

$

1,899

 

$

2,175

 

$

2,389

 

1                   Includes operating leases

*                 Twelve-month growth rate

 

16.)         Leasing and Equipment Finance

 

At September 30, 2008

 

·                                          17th largest bank-affiliated equipment finance/leasing company in the U.S.

 

·                                          34th largest equipment finance/leasing company in the U.S.

 

·                                          Diverse equipment types

·                                          20% specialty vehicles

·                                          18% construction

·                                          17% manufacturing

·                                          14% medical

·                                          11% technology and data processing

 

·                                          Yield 7.38%

 

·                                          Uninstalled backlog of $345.5 million; up $53 million from year-end 2007

 

·                                          Over-30-day delinquency rate 1.08% 1

 

·                                          Net charge-offs: 2008 = .46% 2, 2007 = .20%,

 

1                   Excludes non-accrual loans and leases

2                   Annualized

 


 

17.)         Allowance for Loan & Lease Losses

($ millions)

 

 

 

12/04

 

12/05

 

12/06

 

12/07

 

9/08

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan & Lease Losses

 

$

75.4

 

$

55.8

 

$

58.5

 

$

80.9

 

$

159.0

 

Net Charge-offs (NCO)

 

$

17.5

 

$

28.2

 

$

18.0

 

$

34.6

 

$

67.0

 

 

 

 

 

 

 

 

 

 

 

 

 

As a % of Loans & Leases:

 

 

 

 

 

 

 

 

 

 

 

Allowance

 

.80

%

.55

%

.52

%

.66

%

1.21

%

NCO

 

.20

%

.29

%

.17

%

.30

%

.70

% 1

Coverage Ratio

 

4.3

X

2.0

X

3.3

X

2.3

X

1.8

X 1

 

1                   Annualized

 

18.)         Delinquencies (Over 30-Day)1

(Percent)

($ millions)

 

 

 

12/04

 

12/05

 

12/06

 

12/07

 

9/08

 

 

 

 

 

 

 

 

 

 

 

 

 

Delinquencies

 

.37

%

.43

%

.63

%

.67

%

1.10

%

 

 

 

 

 

 

 

 

 

 

 

 

Delinquencies

 

$

34.4

 

$

43.6

 

$

71.7

 

$

82.6

 

$

142.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Over 90-Day Delinquencies: 1

 

.05

%

.06

%

.11

%

.12

%

.27

%

 

1                   Excludes non-accrual loans and leases

 

19.)         Non-Performing Assets

($ millions)

 

 

 

12/04

 

12/05

 

12/06

 

12/07

 

9/08

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Accrual Loans & Leases

 

$

46.9

 

$

29.7

 

$

43.2

 

$

59.8

 

$

145.9

 

Real Estate Owned

 

17.2

 

17.7

 

22.4

 

45.8

 

54.2

 

Total

 

$

64.1

 

$

47.4

 

$

65.6

 

$

105.6

 

$

200.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Reserves/NAs:

 

161

%

188

%

136

%

135

%

109

%

NPAs/Assets:

 

.52

%

.35

%

.45

%

.66

%

1.21

%

 

20.)         Net Charge-Offs by Type

 

 

 

 

 

 

 

YTD1

 

 

 

2006

 

2007

 

2008

 

Consumer home equity:

 

 

 

 

 

 

 

First mortgage lien

 

.09

%

.24

%

.59

%

Junior lien

 

.22

 

.50

 

1.20

 

Total consumer home equity

 

.13

 

.33

 

.81

 

Commercial real estate

 

.01

 

.10

 

.44

 

Commercial business

 

.09

 

.22

 

.73

 

Leasing and equipment finance

 

.29

 

.20

 

.46

 

Residential real estate

 

.04

 

.04

 

.17

 

Total

 

.17

 

.30

 

.70

 

 

1                   Year-to-date as of September 30 (annualized)

 

21.)         Net Charge-Offs1 vs. Other Banks

(Percent)

 

 

 

2004

 

2005

 

2006

 

2007

 

20082

 

 

 

 

 

 

 

 

 

 

 

 

 

TCF

 

.11

%

.25

%

.17

%

.30

%

.70

%

Wells Fargo

 

.54

%

.68

%

.64

%

.93

%

1.60

%

Marshall & Ilsley

 

.11

%

.12

%

.10

%

.59

%

1.84

%

Fifth Third

 

.44

%

.44

%

.43

%

.59

%

1.69

%

U.S. Bancorp

 

.62

%

.51

%

.38

%

.52

%

.96

%

 

1                   As a % of average loans & leases

2                   Year-to-date as of September 30 (annualized)

 


 

22.)         Total Deposits

Quarterly Average Balances

($ millions)

 

 

 

12/31/04

 

12/31/05

 

12/31/06

 

12/31/07

 

9/30/08

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of Deposit

 

$

1,470

 

$

1,887

 

$

2,471

 

$

2,307

 

$

2,469

 

Money Market

 

686

 

649

 

594

 

598

 

630

 

Savings

 

1,912

 

2,190

 

2,321

 

2,596

 

2,808

 

Checking

 

3,741

 

4,102

 

4,141

 

3,981

 

4,083

 

Total

 

$

7,809

 

$

8,828

 

$

9,527

 

$

9,482

 

$

9,990

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rate 1:

 

.62

%

1.54

%

2.33

%

2.29

%

1.34

%

 

1                   Quarter-to-date

 

23.)         Premier Checking & Savings Deposits + 4%*

Quarterly Average Balances

($ millions)

 

 

 

12/31/04

 

12/31/05

 

12/31/06

 

12/31/07

 

9/30/08

 

 

 

 

 

 

 

 

 

 

 

 

 

Premier Savings

 

$

199

 

$

640

 

$

1,015

 

$

1,354

 

$

1,403

 

Premier Checking

 

343

 

828

 

1,042

 

1,026

 

933

 

Total

 

$

542

 

$

1,468

 

$

2,057

 

$

2,380

 

$

2,336

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rate 1:

 

1.85

%

3.27

%

3.72

%

3.38

%

1.63

%

Spread to LIBOR 1:

 

(.29

)

(.90

)

(1.61

)

(1.54

)

(.99

)

 

*                 Twelve-month growth rate

1                   Quarter-to-date

 

24.)         Banking Fees and Other Revenue1

($ millions)

 

 

 

2004

 

2005

 

2006

 

2007

 

2008

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

87.7

 

$

88.2

 

$

94.4

 

$

96.2

 

$

99.5

 

Second Quarter

 

104.5

 

100.1

 

106.7

 

108.7

 

106.0

 

Third Quarter

 

103.0

 

104.7

 

108.2

 

109.5

 

109.9

 

Fourth Quarter

 

98.8

 

100.9

 

101.3

 

108.4

 

 

Total

 

$

394

 

$

394

 

$

411

 

$

423

 

$

315

 

 

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

 

25.)         Card Revenue +5%*

($ millions)

 

 

 

2004

 

2005

 

2006

 

2007

 

2008

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

13.5

 

$

17.6

 

$

21.3

 

$

23.3

 

$

24.8

 

Second Quarter

 

16.0

 

19.8

 

22.9

 

24.9

 

26.8

 

Third Quarter

 

16.3

 

21.0

 

24.4

 

25.6

 

26.2

 

Fourth Quarter

 

17.7

 

21.4

 

23.5

 

25.1

 

 

Total

 

$

63.5

 

$

79.8

 

$

92.1

 

$

98.9

 

$

77.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Vol.:

 

$

4,735

 

$

5,673

 

$

6,465

 

$

6,949

 

$

5,504

1

Average Interchange Rate:

 

1.30

%

1.34

%

1.36

%

1.35

%

1.33

%1

 

*                 Year-to-date growth rate (‘08 vs. ‘07)

1                   Year-to-date

 


 

26.)         Card Revenue

 

·                                          12th largest issuer of Visa® Classic debit cards

 

·                                          13th largest issuer of Visa® Commercial debit cards

 

·                                          $5.5 billion in sales volume, up 6.6% 1

 

·                                          20.3 transactions per month on active cards, up 5.2% 1

 

1                   Year-to-date

 

27.)         Financial Highlights

 

28.)         Financial Highlights

($ millions, except per-share data)

 

 

 

Year-to-Date

 

 

 

 

 

2008

 

2007

 

Change

 

Net Interest Income

 

$

446.6

 

$

410.6

 

8.8

%

 

Fees and Other Revenue:

 

 

 

 

 

 

 

 

Banking

 

315.5

 

314.4

 

.3

 

 

Other

 

41.7

 

51.0

 

(18.2

)

 

Total Fees and Other Revenue

 

357.2

 

365.4

 

(2.2

)

 

Subtotal

 

803.8

 

776.0

 

3.6

 

 

Visa Share Redemption

 

8.3

 

 

N.M.

 

 

Gains on Sales of Securities Available for Sale

 

7.9

 

2.0

 

N.M.

 

 

Gains on Sales of Branches and Real Estate

 

 

35.2

 

N.M.

 

 

Total Revenue

 

820.0

 

813.2

 

.8

 

 

Provision for Credit Losses

 

145.0

 

36.9

 

N.M.

 

 

Non-Interest Expense

 

514.6

 

489.5

 

5.1

 

 

Net Income

 

$

101.3

 

$

204.0

 

(50.3

)

 

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

.81

 

$

1.62

 

 

 

 

ROA

 

.83

%

1.82

%

 

 

 

ROE

 

12.29

%

26.58

%

 

 

 

 

N.M. Not Meaningful

 

29.)         Significant Financial Items

Impact on Diluted EPS

($)

 

 

 

Year-to-Date

 

 

 

2008

 

2007

 

Asset sales:

 

 

 

 

 

Land and buildings

 

$

 

$

.02

 

Michigan branches

 

 

.16

 

Securities available for sale

 

.04

 

.01

 

Visa share redemption

 

.04

 

 

Visa indemnification recovery

 

.02

 

 

Income tax adjustments

 

(.03

)

.11

 

Total impact on diluted EPS

 

$

.07

 

$

.30

 

Provision for credit losses

 

$

(.76

)

$

(.20

)

 


 

30.)         Cautionary Statement

 

This presentation and other reports issued by the Company, including reports filed with the SEC, may contain “forward-looking” statements that deal with future results, plans or performance. In addition, TCF’s management may make such statements orally to the media, or to securities analysts, investors or others. Forward-looking statements deal with matters that do not relate strictly to historical facts. TCF’s future results may differ materially from historical performance and forward-looking statements about TCF’s expected financial results or other plans and are subject to a number of risks and uncertainties. These include, but are not limited, to possible legislative changes and adverse economic, business and competitive developments such as shrinking interest margins; deposit outflows; an inability to increase the number of 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; adverse findings in tax audits or regulatory examinations and resulting enforcement actions; changes in credit and other risks posed by TCF’s loan, lease, investment, and securities available for sale portfolios, including declines in commercial or residential real estate values or changes in allowance for loan and lease losses methodology dictated by new market conditions or regulatory requirements; lack of or inadequate insurance coverage for claims against TCF; technological, computer-related or operational difficulties or loss or theft of information; adverse changes in securities markets directly or indirectly affecting TCF’s ability to sell assets or to fund its operations; results of litigation, including possible increases in indemnification obligations for certain litigation against Visa U.S.A. Inc. (“covered litigation”) and potential reductions in card revenues resulting from other litigation against Visa; increased deposit insurance premiums or other costs related to deteriorating conditions in the banking industry and the economic impact on banks of the Emergency Economic Stabilization Act or other related legislative and regulatory developments; heightened regulatory practices, requirements or expectations; 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.

 

31.)         Appendix

 

32.)         Diluted EPS

($)

 

 

 

1998

 

1999

 

2000

 

2001

 

2002

 

2003

 

2004

 

2005

 

2006

 

2007

 

2008 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

.88

 

$

1.00

 

$

1.17

 

$

1.35

 

$

1.58

 

$

1.53

 

$

1.86

 

$

2.00

 

$

1.90

 

$

2.12

 

$

.81  

 

 

1                   Year-to-date

 

33.)         Net Interest Margin1

(Percent)

 

 

 

9/07

 

12/07

 

3/08

 

6/08

 

9/08

 

 

 

 

 

 

 

 

 

 

 

 

 

TCF1

 

3.90

%

3.83

%

3.84

%

4.00

%

3.97

%

 

 

1                   Quarter-to-date

 

34.)         Power Asset Geographic Diversification

($ millions)

 

At September 30, 2008:

 

Consumer

Home Equity

& Other

 

Commercial

Real Estate

& Commercial

Business

 

Leasing and

Equipment

Finance

 

Total

 

Minnesota

 

$

2,578

 

$

867

 

$

71

 

$

3,516

 

Illinois

 

2,149

 

770

 

82

 

3,001

 

Michigan

 

1,147

 

920

 

97

 

2,164

 

Wisconsin

 

509

 

473

 

46

 

1,028

 

Colorado

 

418

 

89

 

36

 

543

 

California

 

7

 

19

 

305

 

331

 

Florida

 

6

 

61

 

129

 

196

 

Texas

 

1

 

3

 

159

 

163

 

Arizona

 

30

 

23

 

83

 

136

 

Indiana

 

24

 

42

 

40

 

106

 

Other

 

29

 

135

 

1,283

 

1,447

 

Total

 

$

6,898

 

$

3,402

 

$

2,331

 

$

12,631

 

 


 

35.)         Consumer Home Equity and Commercial Loans

Quarterly Average Balances

($ millions)

 

 

 

 

 

 

 

Change
Inc./(Dec.)

 

 

 

9/30/08

 

9/30/07

 

$

 

%

 

Consumer Home Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-rate

 

$

5,073

 

$

4,751

 

$

322

 

 

7

%

Yield

 

 

6.79

%

 

6.99

%

 

(20

)bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable-rate

 

$

1,758

 

$

1,456

 

$

302

 

 

21

%

Yield

 

 

6.19

%

 

8.67

%

 

(248

)bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed- and adjustable-rate

 

$

2,349

 

$

1,957

 

$

392

 

 

20

%

Yield

 

 

6.09

%

 

6.43

%

 

(34

)bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable-rate

 

$

973

 

$

980

 

$

(7

)

 

(1

)%

Yield

 

 

4.82

%

 

7.72

%

 

(290

)bps

 

 

 

 

36.)         Customer Payment Activity

Transaction Volume

(# millions)

 

 

 

 

YTD 3Q08

 

YTD 3Q07

 

% Increase/

Decrease

 

Checks/ACH

 

81.7

 

88.3

 

(7.5

)%

ATM

 

21.5

 

23.4

 

(8.1

)%

Debit Card Purchases

 

149.8

 

141.7

 

5.7

 %

 

37.)         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.

 

38.)         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.

 


 

39.)         Source References

 

Slide: Corporate Profile

34th largest U.S. bank - Ipreo; 6/30/08

25th largest branch network - SNL Financial, LC; 3Q08

6th largest in campus card relationships - CR80News; Spring 2008

12th largest issuer of Visa Classic - Visa; 2Q08; ranked by sales volume

17th largest bank-affiliated leasing company - The Monitor; Jul/Aug 2008

 

Slide: Dividend History

10-year compounded annual growth rate - Ipreo

 

Slide: Leasing and Equipment Finance

17th largest bank-affiliated leasing company - The Monitor; Jul/Aug 2008

34th largest leasing company - The Monitor; 2008 Monitor 100

 

Slide: Net Charge-Offs vs. Other Banks

Net charge-off data - SNL Financial, LC; 3Q08

 

Slide: Card Revenue

12th largest issuer of Visa Classic - Visa; 2Q08; ranked by sales volume

13th largest issuer of Visa Commercial - Visa; 2Q08; ranked by sales volume

 

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