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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 22, 2009

 


 

 

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:

 

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

 

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

 

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

 

[   ]   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 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 January 22, 2009, 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 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 January 22, 2009, 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 January 22, 2009

 

 

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:       January 22, 2009

 

3

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

Exhibit 99.1

 

TCF Financial Corporation

Fourth Quarter 2008 Investor Presentation

The Convenience Franchise

 

1.)                                  Corporate Profile

 

At December 31, 2008

 

·                  $16.7 billion financial holding company headquartered in Minnesota

 

·                                  38th largest U.S. based bank by asset size

 

·                  448 bank branches, 115 branches opened since January 1, 2003

 

·                                  23rd largest branch network

 

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

 

·                  1,628 ATMs free to TCF customers; 1,138 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 14.65%;  $577 million over risk-based well capitalized requirement

 

·                  Tier 1 risk-based capital of 11.79%

 

2.)                                  Corporate Profile

 

·      Bank branches located in seven states

 

 

 

At 12/31/08

Traditional

 

197

Supermarket

 

236

Campus

 

15

Total

 

448

 

 

 

 

 

At 12/31/08

Minnesota

 

111

Illinois

 

206

Michigan

 

56

Colorado

 

36

Wisconsin

 

27

Arizona

 

7

Indiana

 

5

Total

 

448

 

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

·                                  1,628 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, leasing and equipment finance and inventory 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 Option ARM loans

 

·                  No asset-backed commercial paper

 

·                  No Freddie Mac or Fannie Mae preferred stock

 

·                  No auto lease portfolio

 

·                  No derivatives

 

6.)                                  Risk-Based Capital

$577 million excess over well capitalized requirement

($ millions)

 

 

 

   12/04

 

   12/05

 

   12/06

 

   12/07

 

   12/08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actual

 

$

959

 

$

1,050

 

$

1,173

 

$

1,246

 

$

1,817

 

 

Target (10.6%):

 

$

934

 

$

1,042

 

$

1,120

 

$

1,235

 

$

1,317

 

 

Well Capitalized Requirement

 

$

881

 

$

983

 

$

1,057

 

$

1,165

 

$

1,240

 

 

Tier 1:

 

9.12

%

8.79

%

8.65

%

8.28

%

11.79

%

 

Total:

 

10.88

%

10.68

%

11.10

%

10.70

%

14.65

%

 

Excess RBC:

 

$

77

 

$

67

 

$

116

 

$

81

 

$

577

 

 

 

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

 


 

8.)                                  TCF Participates in Capital Purchase Program

 

On November 14, 2008, TCF received $361.2 million from the U.S. Department of the Treasury in exchange for 361,172 shares of senior perpetual preferred stock

 

·                  Cumulative dividends of 5% for the first five years, 9% thereafter

 

·                  U.S. Treasury received warrants for the right to purchase 3.2 million shares of TCF common stock at $16.93 per share

 

·                  Redemption available if TCF meets certain criteria

 

·                  No common dividend increases or common stock buybacks allowed

 

9.)                                  TCF Use of Capital Purchase Program Funds

 

·                  Loans and leases have increased $179 million since September 30, 2008

 

·                  Originated $490.4 million of loans and leases since receiving the proceeds on November 14, 2008

 

·                  Completed 762 loan modifications and extensions on $117.1 million of consumer home equity loans to help these customers avoid home foreclosures

 

10.)                           Common Stock 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

 

$

1.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend Payout Ratio:

 

35

%

36

%

35

%

37

%

37

%

43

%

40

%

43

%

48

%

46

%

99

%

 

10-year compounded annual growth rate of 12.6% is the 12th highest among the 50 largest banks in the country

 

11.)                           Return of Net Income to Common Stockholders

($ millions)

 

 

 

Net

 

Common Stock

 

Stock

 

 

 

% of Net

 

 

 

Income1

 

Dividends Paid

 

Repurchase

 

Total

 

Income1

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

126.4

 

126.4

 

 

126.4

 

100

 

Total

 

$

1,158.2

 

$

590.8

 

$

415.9

 

$

1,006.7

 

87

%

 % of Net Income1

 

 

 

51

%

36

%

87

%

 

 

 

1     Represents net income available to common stockholders

 


 

12.)                           Liquidity and Borrowing Capacity

 

At December 31, 2008

 

·                  In addition to the $10.2 billion deposit base provided by TCF’s retail franchise, TCF has borrowing capacity from a variety of sources:

 

·                                  $2.3 billion in secured borrowing capacity at the Federal Home Loan Bank of Des Moines

 

·                                  $1 billion in unsecured and uncommitted available lines

 

·                                  $616 million of secured borrowing capacity at the Federal Reserve Discount Window

 

13.)                           Home Equity Lending +5%*

65% are 1st mortgages

($ millions)

 

 

 

12/04

 

12/05

 

12/06

 

12/07

 

12/08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1st Mortgages

 

$

2,894

 

$

3,376

 

$

3,782

 

$

4,179

 

$

4,426

 

 

Junior Liens

 

1,488

 

1,773

 

2,101

 

2,344

 

2,420

 

 

Total

 

$

4,382

 

$

5,149

 

$

5,883

 

$

6,523

 

$

6,846

 

 

 

*     Annual growth rate (‘08 vs. ‘07)

 

14.)                           Home Equity Loans

 

At December 31, 2008

 

·                  65% 1st mortgages, average loan amount of $116,443

 

·                  35% junior lien positions, average loan amount of $36,104

 

·                  76% amortizing loans, 24% lines of credit

 

·                  73% fixed rate, 27% variable rate (prime based)

 

·                  98% of variable rate loans are at or below their interest rate floor 1

 

·                  Average home value of $254,106 2

 

·                  Yield 6.70%

 

·                  Over-30-day delinquency rate 1.56% 3

 

·                  Net charge-offs: 2008 = .90%, 2007 = .33%, 2006 = .13%

 

·                  Average FICO score at origination of 723

 

·                  Originated $1.1 billion of new loans in 2008; of these loans, net charge-offs totaled $273,000, or .03%

 

1     At January 1, 2009

2     Based on most recent values known to TCF

3     Excludes non-accrual loans

 


 

15.)                           Commercial Lending +12%*

($ millions)

 

 

 

12/04

 

12/05

 

12/06

 

12/07

 

12/08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Business

 

$

436.7

 

$

435.2

 

$

552.0

 

$

558.3

 

$

506.9

 

 

Commercial Real Estate

 

2,154.4

 

2,297.5

 

2,390.7

 

2,557.3

 

2,984.2

 

 

Total

 

$

2,591

 

$

2,733

 

$

2,943

 

$

3,116

 

$

3,491

 

 

 

*    Annual growth rate (‘08 vs. ‘07)

 

16.)                           Commercial Loans

 

At December 31, 2008

 

·                  Commercial real estate

·           28% retail services

·           20% apartment loans

·           16% office buildings

·           14% industrial buildings

·           3% residential development and construction

 

·                  Commercial business – $507 million

 

·                  Yield 5.87%

 

·                  Over-30-day delinquency rate .12% 1

 

·                  Net charge-offs: 2008 = .54%, 2007 = .12%

 

·                  Approximately 99% of all commercial loans secured

 

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

 

1     Excludes non-accrual loans

 

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

($ millions)

 

 

 

12/04

 

12/05

 

12/06

 

12/07

 

12/08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leasing and Equipment Finance

 

$

1,389

 

$

1,560

 

$

1,899

 

$

2,175

 

$

2,545

 

 

 

1     Includes operating leases

*    Annual growth rate (‘08 vs. ‘07)

 


 

18.)                           Leasing and Equipment Finance

 

At December 31, 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

·           16% manufacturing

·           14% medical

·           10% technology and data processing

 

·                  Yield 7.32%

 

·                  Uninstalled backlog of $328 million; up $36 million from year-end 2007

 

·                  Over-30-day delinquency rate 1.17% 1

 

·                  Net charge-offs: 2008 = .50%, 2007 = .20%,

 

1     Excludes non-accrual loans and leases

 

19.)                           Allowance for Loan & Lease Losses

($ millions)

 

 

 

   12/04

 

   12/05

 

   12/06

 

   12/07

 

   12/08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan & Lease Losses

 

$

75.4

 

$

55.8

 

$

58.5

 

$

80.9

 

$

172.4

 

 

Net Charge-offs (NCO)

 

$

17.5

 

$

28.2

 

$

18.0

 

$

34.6

 

$

100.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As a % of Loans & Leases:

 

 

 

 

 

 

 

 

 

 

 

 

Allowance

 

.80

%

.55

%

.52

%

.66

%

1.29

%

 

NCO

 

.20

%

.29

%

.17

%

.30

%

.78

%

 

Coverage Ratio

 

4.3

X

2.0

X

3.3

X

2.3

X

1.7

X

 

 

20.)                           Delinquencies (Over 30-Day)1

(Percent)

($ millions)

 

 

 

   12/04

 

   12/05

 

   12/06

 

   12/07

 

   12/08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Delinquencies

 

.37

%

.43

%

.63

%

.67

%

1.13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Delinquencies

 

$

34.4

 

$

43.6

 

$

71.7

 

$

82.6

 

$

149.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Over 90-Day Delinquencies: 1

 

.05

%

.06

%

.11

%

.12

%

.28

%

 

 

1     Excludes non-accrual loans and leases

 

21.)                           Non-Performing Assets
($ millions)

 

 

 

  12/04

 

  12/05

 

  12/06

 

  12/07

 

  12/08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Accrual Loans & Leases

 

$

46.9

 

$

29.7

 

$

43.2

 

$

59.8

 

$

172.5

 

 

Real Estate Owned

 

17.2

 

17.7

 

22.4

 

45.8

 

61.7

 

 

Total

 

$

64.1

 

$

47.4

 

$

65.6

 

$

105.6

 

$

234.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reserves/NAs:

 

161

%

188

%

136

%

135

%

100

%

 

NPAs/Assets:

 

.52

%

.35

%

.45

%

.66

%

1.40

%

 

 

22.)                           Net Charge-Offs by Type

 

 

 

  2006

 

  2007

 

  2008

 

 

Consumer home equity:

 

 

 

 

 

 

 

 

First mortgage lien

 

.09

%

.24

%

.66

%

 

Junior lien

 

.22

 

.50

 

1.34

 

 

Total consumer home equity

.13

 

.33

 

.90

 

 

Commercial real estate

 

.01

 

.10

 

.44

 

 

Commercial business

 

.09

 

.22

 

1.05

 

 

Leasing and equipment finance

 

.29

 

.20

 

.50

 

 

Residential real estate

 

.04

 

.04

 

.25

 

 

Total

 

.17

 

.30

 

.78

 

 

 


 

 

23.)                           Net Charge-Offs1 vs. Other Banks
(Percent)

 

 

 

  2004

 

  2005

 

  2006

 

  2007

 

  20082

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TCF

 

.11

%

.25

%

.17

%

.30

%

.78

%

 

Marshall & Ilsley

 

.11

%

.12

%

.10

%

.59

%

2.74

%

 

Bank of America

 

.65

%

.83

%

.68

%

.82

%

1.72

%

 

U.S. Bancorp

 

.62

%

.51

%

.38

%

.52

%

1.07

%

 

 

1              As a % of average loans & leases

2              YTD as of 12/31/08

 

24.)                           Total Deposits
Quarterly Average Balances
($ millions)

 

 

 

  12/31/04

 

  12/31/05

 

  12/31/06

 

  12/31/07

 

  12/31/08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of Deposit

 

$

1,470

 

$

1,887

 

$

2,471

 

$

2,307

 

$

2,449

 

 

Money Market

 

686

 

649

 

594

 

598

 

625

 

 

Savings

 

1,912

 

2,190

 

2,321

 

2,596

 

2,861

 

 

Checking

 

3,741

 

4,102

 

4,141

 

3,981

 

3,914

 

 

Total

 

$

7,809

 

$

8,828

 

$

9,527

 

$

9,482

 

$

9,849

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rate:

 

.62

%

1.54

%

2.33

%

2.29

%

1.51

%

 

 

25.)                           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

 

100.4

 

 

Total

 

$

394

 

$

394

 

$

411

 

$

423

 

$

416

 

 

 

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

 

26.)                           Card Revenue +4%*
($ 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

 

25.2

 

 

Total

 

$

63.5

 

$

79.8

 

$

92.1

 

$

98.9

 

$

103.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Volume:

 

$

4,735

 

$

5,673

 

$

6,465

 

$

6,949

 

$

7,280

 

 

Average Interchange Rate:

 

1.30

%

1.34

%

1.36

%

1.35

%

1.34

%

 

 

*    Annual growth rate (‘08 vs. ‘07)

 

27.)                           Card Revenue

 

·                  12th largest issuer of Visa® Classic debit cards

 

·                  13th largest issuer of Visa® Commercial debit cards

 

·                  $7.3 billion in sales volume, up 4.8% 1

 

·                  20.3 transactions per month on active cards, up 4.6% 1

 

1     Annual growth rate (‘08 vs. ‘07)

 


 

28.)                           Financial Highlights

 

29.)                           Financial Highlights
($ millions, except per-share data)

 

 

 

Year-to-Date

 

 

 

 

 

2008

 

2007

 

Change

 

Net Interest Income

 

$

593.7

 

$

550.2

 

7.9

%

Fees and Other Revenue:

 

 

 

 

 

 

 

Banking

 

415.8

 

422.9

 

(1.7

)

Other

 

58.2

 

67.4

 

(13.6

)

Total Fees and Other Revenue

 

474.0

 

490.3

 

(3.3

)

Subtotal

 

1,067.7

 

1,040.5

 

2.6

 

Gains on Sales of Securities Available for Sale

 

16.1

 

13.3

 

N.M.

 

Visa Share Redemption

 

8.3

 

 

N.M.

 

Gains on Sales of Branches and Real Estate

 

 

37.9

 

N.M.

 

Total Revenue

 

1,092.1

 

1,091.7

 

 

Provision for Credit Losses

 

192.0

 

57.0

 

N.M.

 

Non-Interest Expense

 

694.4

 

662.1

 

4.9

 

Net Income

 

128.9

 

266.8

 

(51.7

)

Preferred Stock Dividends

 

2.5

 

 

100.0

 

Net Income Available to Stockholders

 

$

126.4

 

$

266.8

 

(52.6

)

 

 

 

 

 

 

 

 

Diluted Earnings per Common Share

 

$

1.01

 

$

2.12

 

 

 

ROA

 

.79

%

1.76

%

 

 

ROCE

 

11.46

%

25.82

%

 

 

 

N.M. Not Meaningful

 

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, continued or deepening deterioration in banking industry conditions; limitations on TCF’s ability to pay dividends at current levels or to increase dividends in the future because of financial performance deterioration, regulatory restrictions, or limitations imposed as a result of TCF’s participation in the U.S. Treasury Department’s Capital Purchase Program (“CPP”); 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 (“EESA”) or other related legislative and regulatory developments; the imposition of requirements with an adverse financial impact relating to TCF’s lending, loan collection and other business activities as a result of the EESA, TCF’s participation in the CPP, or other legislative or regulatory developments; 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 legislative, regulatory 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 continuing 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 potential class action litigation concerning TCF’s lending or deposit activities or employment practices and possible increases in indemnification obligations for certain litigation against Visa U.S.A. (“covered litigation”) and potential reductions in card revenues resulting from other litigation against Visa; heightened regulatory practices, requirements or expectations, including but not limited to requirements related to the Bank Secrecy Act and anti-money laundering compliance activity; 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 Earnings per Common Share
($)

 

 

  

1998

  

1999

  

2000

  

2001

  

2002

  

2003

  

2004

  

2005

  

2006

  

2007

  

2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$  .88

 

$ 1.00

 

$ 1.17

 

$ 1.35

 

$ 1.58

 

$ 1.53

 

$ 1.86

 

$ 2.00

 

$ 1.90

 

$ 2.12

 

$ 1.01

 

 

33.)                           Net Interest Margin
(Percent)

 

 

 

  2004

 

  2005

 

  2006

 

  2007

 

  2008

 

 

 

 

 

 

 

 

 

 

 

 

 

TCF

 

4.54

%

4.46

%

4.16

%

3.94

%

3.91

%

 

34.)                           Power Asset Geographic Diversification
($ millions)

 

 

 

 

 Commercial

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

  Real Estate

  Leasing and

 

 

 

 

 

 

 

 

 

Home Equity

  & Commercial

  Equipment

 

  Inventory

 

 

 

 

 

At December 31, 2008:

 

 

& Other  

 

 

  Business

 

 

  Finance

 

 

  Finance

 

 

  Total

 

 

Minnesota

 

$

2,594

 

$

1,128

 

$

72

 

$

 

$

3,794

 

 

Illinois

 

2,145

 

763

 

88

 

 

2,996

 

 

Michigan

 

1,133

 

900

 

100

 

 

2,133

 

 

Wisconsin

 

507

 

593

 

49

 

 

1,149

 

 

Colorado

 

428

 

3

 

40

 

 

471

 

 

California

 

7

 

82

 

326

 

 

415

 

 

Texas

 

1

 

 

172

 

 

173

 

 

Florida

 

5

 

2

 

139

 

 

146

 

 

Ohio

 

4

 

 

124

 

 

128

 

 

New York

 

35

 

 

85

 

 

120

 

 

Arizona

 

3

 

9

 

99

 

 

111

 

 

Indiana

 

25

 

10

 

46

 

 

81

 

 

Other

 

21

 

1

 

1,146

 

4

 

1,172

 

 

Total

 

$

6,908

 

$

3,491

 

$

2,486

 

$

4

 

$

12,889

 

 

 

35.)                           Consumer Home Equity and Commercial Loans
Quarterly Average Balances
($ millions)

 

 

 

 

 

 

 

  Change

 

 

 

 

 

 

 

  Inc./(Dec.)

 

 

 

  12/31/08

 

  12/31/07

 

  $

 

  %

 

Consumer Home Equity:

 

 

 

 

 

 

 

 

 

Fixed-rate

 

$

5,034

 

$

4,889

 

$

145

 

3

%

Yield

 

6.71

%

6.98

%

(27

)bps

 

 

 

 

 

 

 

 

 

 

 

 

Variable-rate

 

$

1,794

 

$

1,522

 

$

272

 

18

%

Yield

 

6.00

%

7.98

%

(198

)bps

 

 

 

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

Fixed- and adjustable-rate

 

$

2,549

 

$

2,019

 

$

530

 

26

%

Yield

 

5.89

%

6.42

%

(53

)bps

 

 

 

 

 

 

 

 

 

 

 

 

Variable-rate

 

$

960

 

$

1,001

 

$

(41

)

(4

)%

Yield

 

4.71

%

7.02

%

(231

)bps

 

 

 

36.)                           Customer Payment Activity
Transaction Volume
(# millions)

 

 

 

 

 

 

  % Increase/

 

 

  2008

 

  2007

 

  Decrease

 

Checks/ACH

 

108.0

 

117.1

 

(7.8

)%

ATM

 

28.1

 

30.7

 

(8.5

)%

Debit Card Purchases

 

200.2

 

191.5

 

4.5

 %

 

2008 Transactions per day - 918,992

 


 

37.)                           Glossary of Terms

 

Coverage Ratio

 

Period-end allowance for loan and lease losses as a multiple of annualized net charge-offs.

 

Earnings per Common Share

 

Net income available to common stockholders divided by weighted-average common and common equivalent shares outstanding during the period (diluted Earnings per Common Share).

 

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 (ROCE)

 

Annualized net income available for common stockholders divided by average common stockholders’ equity for the period.

 

39.)                           Source References

 

Slide: Corporate Profile

38th largest U.S. bank - Ipreo; 9/30/08

23rd largest branch network - SNL Financial, LC; 4Q08

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

12th largest issuer of Visa Classic - Visa; 3Q08; ranked by sales volume

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

 

Slide: Common Stock 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; 4Q08

 

Slide: Card Revenue

12th largest issuer of Visa Classic - Visa; 3Q08; ranked by sales volume

13th largest issuer of Visa Commercial - Visa; 3Q08; ranked by sales volume

 

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