Toggle SGML Header (+)


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): February 3, 2010

 


 

 

TCF FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

 


 

Delaware

 

001-10253

 

41-1591444

(State of other jurisdiction of incorporation)

 

(Commission File Number)

 

(IRS Employer Identification No.)

 

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 2009 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.  These materials replace and supersede investor presentation materials previously furnished as an exhibit to Current Reports on Form 8-K.  These materials are dated February 3, 2010, 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 2009 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.  These materials replace and supersede investor presentation materials previously furnished as an exhibit to Current Reports on Form 8-K.  These materials are dated February 3, 2010, 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 February 3, 2010

 

 

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:       February 3, 2010

 

3

 

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

 

Exhibit 99.1

 

TCF Financial Corporation

2009 Fourth Quarter Investor Presentation

The Convenience Franchise

 

1.)           Corporate Profile

 

At December 31, 2009

 

·     $17.9 billion financial holding company headquartered in Minnesota

 

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

 

·     443 bank branches, 95 branches opened since January 1, 2004

 

·        24th largest U.S. branch network

 

·        9 campus alliances; 5th largest in campus card banking relationships

 

·     1,639 ATMs free to TCF customers; 1,154 off-site

 

·     10th largest issuer of Visa® Classic debit cards

 

·     15th largest bank affiliated leasing company in the U.S.

 

·     Tangible realized common equity of 5.86%1

 

1         Ratio excludes the impact of goodwill, other intangibles and accumulated other comprehensive income (loss) (see “Reconciliation of GAAP to Non-GAAP Measures” slide)

 

2.)           Corporate Profile

 

At December 31, 2009

 

·     Bank branches located in eight states

 

Traditional

 

197

 

Supermarket

 

233

 

Campus

 

13

 

Total

 

443

 

 

 

 

 

 

 

 

 

Minnesota

 

110

 

Illinois

 

202

 

Michigan

 

56

 

Colorado

 

36

 

Wisconsin

 

26

 

Arizona

 

7

 

Indiana

 

5

 

South Dakota

 

1

 

Total

 

443

 

 

3.)           Head Winds

 

·     U.S. economy

 

·     Unemployment and underemployment

 

·     Legislation

 

·     Regulatory burden

 

·     Home values

 

·     Credit

 


 

4.)           Tail Winds

 

·     Specialty Finance

 

·         Leasing & Equipment Finance

 

·         Inventory Finance

 

·     Limited commercial real estate lending competition

 

·     Checking and savings account growth

 

5.)           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

·         Free debit cards, free coin counting and 1,639 free ATMs

·         No fees on purchases of Visa gift cards

·         TCF Totally Free Online banking

 

·     Credit Quality

TCF is primarily a secured lender, emphasizing credit quality over asset growth.

 

·     Regional funding for diversified lending platform

·         Grew average deposits in 2009 by $1.4 billion

·         Grew nationally-oriented specialty finance businesses in 2009 by $1 billion

 

6.)           What Makes TCF Different

 

·     No preferred stock or warrants owned by the U.S. Treasury

 

·     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 non-agency mortgage-backed securities

 

·     No off-balance sheet funding

 

·     No auto lease portfolio

 

·     No bank-owned life insurance

 

·     No structured investment vehicles (SIVs)

 

·     No mortgage servicing rights

 

·     No brokered deposits

 

 

7.)           Risk-Based Capital

$152 million excess over well capitalized requirement

($ millions)

 

 

 

12/05

 

12/06

 

12/07

 

12/08

 

12/09

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Risk-Based Capital

 

$

1,050

 

$

1,173

 

$

1,246

 

$

1,817

 

$

1,515

 

Well Capitalized Requirement

 

$

983

 

$

1,057

 

$

1,165

 

$

1,240

 

$

1,363

 

Tier 1:

 

8.79

%

8.65

%

8.28

%

11.79

%

8.52

%

Total:

 

10.68

%

11.10

%

10.70

%

14.65

%

11.12

%

Excess RBC:

 

$

67

 

$

116

 

$

81

 

$

577

 

$

152

 

 

 

 

 

 

 

 

 

 

 

 

 


 

8.)           Liquidity & Borrowing Capacity

 

At December 31, 2009

 

·     TCF has unused, secured borrowing capacity from the following sources:

 

·        $1.9 billion in secured borrowing capacity at the Federal Home Loan Bank of Des Moines

 

·        $708 million of secured borrowing capacity at the Federal Reserve Discount Window

 

9.)                                  Securities Available for Sale

Quarterly Average Balances

($ millions)

 

 

 

12/08

 

Yield

 

12/09

 

Yield

 

U.S. Government sponsored entities:

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

$

1,964

 

5.13

%   

$

1,498

 

4.73

%

Debentures

 

 

 

413

 

2.23

 

U.S. Treasury bills

 

 

 

68

 

.07

 

Other securities

 

3

 

3.93

 

1

 

6.30

 

Total

 

$

1,967

 

5.13

 

$

1,980

 

4.05

 

 

At December 31, 2009, 99.7% of

securities available for sale were from

Fannie Mae, Freddie Mac or Ginnie Mae

 

10.)         Loans and Leases

 

11.)                           Consumer Real Estate

($ millions)

 

68% were 1st mortgages at December 31, 2009

 

 

 

12/05

 

12/06

 

12/07

 

12/08

 

12/09

 

 

 

 

 

 

 

 

 

 

 

 

 

1st Mortgages

 

$

4,146

 

$

4,409

 

$

4,707

 

$

4,882

 

$

4,962

 

Junior Liens

 

1,773

 

2,101

 

2,344

 

2,420

 

2,319

 

Total

 

$

5,919

 

$

6,510

 

$

7,051

 

$

7,302

 

$

7,281

 

 


 

12.)                           Consumer Real Estate

 

At December 31, 2009

 

·                  68% 1st mortgages, average loan amount of $117,258

 

·                  32% junior lien positions, average loan amount of $36,366

 

·                  76% amortizing loans, 24% lines of credit

 

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

 

·                  Average home value of $249,899 1

 

·                  6.25% average yield for 2009

 

·                  Over-60-day delinquency rate 1.16% 2

 

·                  Net charge-offs: 2009 = 1.46%, 2008 = .86%, 2007 = .31%

 

·                  Average FICO score at origination 725

 

·                  Originated $1.9 billion of new loans in 2008 and 2009; of these loans, net charge-offs over the last eight quarters totaled $4 million (or 10 bps3)

 

1          Based on value at origination

2          Excludes non-accrual loans

3          Annualized

 

13.)                           Commercial Lending +7%*

($ millions)

 

 

 

12/05

 

12/06

 

12/07

 

12/08

 

12/09

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Business

 

$

435

 

$

552

 

$

558

 

$

507

 

$

450

 

Commercial Real Estate

 

2,298

 

2,391

 

2,558

 

2,984

 

3,269

 

Total

 

$

2,733

 

$

2,943

 

$

3,116

 

$

3,491

 

$

3,719

 

 

*                 Annual growth rate (‘09 vs. ‘08)

 

14.)                           Commercial Loans

 

At December 31, 2009

 

·      Commercial real estate — $3.3 billion

·      26% retail services

·      22% office buildings

·      21% apartment loans

·      8% industrial buildings

·      1% residential development and construction

 

·      Commercial business — $450 million

 

·      5.50% average yield for 2009

 

·      Over-60-day delinquency rate .01% 1

 

·      Net charge-offs: 2009 = 1.24%, 2008 = .54%, 2007 = .12%

 

·      Approximately 99% of all commercial loans secured

 

·      CRE location mix: 92% TCF Banking Markets, 8% Other

 

1                   Excludes non-accrual loans

 

 


 

15.)                           Leasing and Equipment Finance 1 +25%*

($ millions)

 

 

 

12/05

 

12/06

 

12/07

 

12/08

 

12/09

 

 

 

 

 

 

 

 

 

 

 

 

 

Leasing and Equipment Finance

 

$

1,560

 

$

1,899

 

$

2,175

 

$

2,545

 

$

3,177

 

 

1          Includes operating leases

*                 Annual growth rate (‘09 vs. ‘08)

 

16.)                           Leasing and Equipment Finance

 

At December 31, 2009

 

·                  15th largest bank affiliated leasing company in the U.S.

 

·                  32nd largest equipment finance/leasing company in the U.S.

 

·                  Diverse equipment types

·                  22% specialty vehicles

·                  19% manufacturing

·                  17% construction

·                  14% medical

·                  7% golf & turf

·                  4% technology and data processing

 

·                  2009 purchased portfolios totaled $563.9 million

 

·                  6.81% average yield for 2009

 

·                  Uninstalled backlog of $322.6 million

 

·                  Over-60-day delinquency rate .44% 1

 

·                  Net charge-offs: 2009 = .97%, 2008 = .50%, 2007 = .20%

 

1          Excludes non-accrual loans and leases

 

17.)                           TCF Inventory Finance

($ millions)

 

 

 

12/08

 

3/09

 

6/09

 

9/09

 

12/09

 

 

 

 

 

 

 

 

 

 

 

 

 

Electronics & Appliances

 

$

4.4

 

$

100.6

 

$

118.3

 

$

128.4

 

$

122.3

 

Lawn & Garden

 

 

 

38.9

 

96.4

 

346.5

 

Total

 

$

4.4

 

$

100.6

 

$

157.2

 

$

224.8

 

$

468.8

 

 

18.)                           TCF Inventory Finance

 

At December 31, 2009

 

·                  Launched in April 2008 and headquartered in Hoffman Estates, Illinois

 

·                  Inventory floorplan finance business with a focus on consumer electronics, household appliances, and lawn and garden products

 

·                  Operates primarily in the U.S. with a presence in Canada

 

·                  250 employees

 

·                  $468.8 million in loan receivables, all variable rate

 

·                  8.22% average yield for 2009

 

 


 

19.)                           Allowance for Loan & Lease Losses

($ millions)

 

 

 

12/05

 

12/06

 

12/07

 

12/08

 

12/09

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan & Lease Losses

 

$

55.8

 

$

58.5

 

$

80.9

 

$

172.4

 

$

244.5

 1 

Net Charge-offs (NCO)

 

$

28.2

 

$

18.0

 

$

34.6

 

$

100.5

 

$

186.5

 

 

 

 

 

 

 

 

 

 

 

 

 

As a % of Loans & Leases:

 

 

 

 

 

 

 

 

 

 

 

Allowance 1

 

.55

%

.52

%

.66

%

1.29

%

1.68

%

NCO

 

.29

%

.17

%

.30

%

.78

%

1.34

%

Coverage Ratio

 

2.0

X

3.3

X

2.3

X

1.7

X

1.3

X

 

1                   Excludes $10.2 million in reserves netted against acquired equipment finance portfolio balances

 

20.)                           Delinquencies1 (Over 60-Day)

($ millions)

 

 

 

12/05

 

12/06

 

12/07

 

12/08

 

12/09

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Real Estate

 

$

12.2

 

$

21.2

 

$

28.1

 

$

67.8

 

$

83.2

 

Commercial

 

1.7

 

14.1

 

3.7

 

0.8

 

0.1

 

Leasing

 

3.3

 

1.8

 

4.0

 

10.9

 

12.0

 

Delinquencies

 

$

17.2

 

$

37.1

 

$

35.8

 

$

79.5

 

$

95.3

 

Over 60-Day Delinquencies:

 

.17

%

.33

%

.29

%

.60

%

.69

%

Over 90-Day Delinquencies:

 

.06

%

.11

%

.12

%

.29

%

.33

%

 

1                   Excludes non-accrual loans and leases

 

21.)                           Non-Performing Assets

($ millions)

 

 

 

12/05

 

12/06

 

12/07

 

12/08

 

12/09

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Accrual Loans & Leases

 

$

29.7

 

$

43.2

 

$

59.8

 

$

172.5

 

$

296.3

 

Properties in Foreclosure

 

10.1

 

12.3

 

31.1

 

37.6

 

59.4

 

Properties Owned

 

7.6

 

10.1

 

14.7

 

24.1

 

46.3

 

Total

 

$

47.4

 

$

65.6

 

$

105.6

 

$

234.2

 

$

402.0

 

 

 

 

 

 

 

 

 

 

 

 

 

# of residential properties owned:

 

70

 

95

 

137

 

187

 

298

 

 


 

22.)                           Net Charge-Offs by Type

 

 

 

2007

 

2008

 

2009

 

 

 

 

 

 

 

 

 

Consumer real estate:

 

 

 

 

 

 

 

First mortgage lien

 

.21

%

.62

%

1.11

%

Junior lien

 

.50

 

1.34

 

2.21

 

Consumer real estate & other

 

.40

 

.98

 

1.56

 

Commercial real estate

 

.10

 

.44

 

1.13

 

Commercial business

 

.22

 

1.05

 

1.92

 

Leasing and equipment finance

 

.20

 

.50

 

.97

 

Inventory finance

 

N.A.

 

 

.10

 

Total

 

.30

 

.78

 

1.34

 

 

N.A. Not Applicable

 

23.)                           Restructured Consumer Real Estate Loans

($ millions)

 

 

 

12/08

 

3/09

 

6/09

 

9/09

 

12/09

 

Accruing restructured consumer real estate loans

 

$

27.4

 

$

24.9

 

$

51.5

 

$

159.9

 

$

252.5

 

 

·                  TCF has several programs designed to help consumer real estate customers avoid home foreclosure by extending payment dates or reducing interest rates

 

·                  Modified $95.4 million of consumer real estate loans in the fourth quarter of 2009 that were considered restructured loans which continue to accrue interest

 

·                  Reserved for based on present value of expected cash flows, currently 10.7%

 

·                  The over-60-day delinquency rate was 2.48% at December 31, 2009

 

·                  TCF’s current modification program started in August 2009 and represents 68% of the December 31, 2009 balance

 

24.)                           Loan and Lease Geographic Diversification

($000s)

 

At Dec. 31, 2009:

 

Consumer
Real Estate
& Other

 

Commercial
Real Estate
& Commercial
Business

 

Leasing and
Equipment
Finance

 

Inventory
Finance

 

Total

 

Minnesota

 

$

2,827,968

 

$

956,480

 

$

76,273

 

$

9,512

 

$

3,870,233

 

Illinois

 

2,223,090

 

934,099

 

108,865

 

22,608

 

3,288,662

 

Michigan

 

1,153,276

 

825,369

 

113,892

 

18,676

 

2,111,213

 

Wisconsin

 

504,248

 

496,926

 

52,857

 

19,487

 

1,073,518

 

Colorado

 

501,944

 

112,219

 

50,993

 

4,835

 

669,991

 

California

 

9,769

 

23,708

 

387,517

 

12,969

 

433,963

 

Florida

 

4,867

 

59,249

 

200,417

 

24,363

 

288,896

 

Texas

 

2,103

 

2,950

 

245,492

 

21,960

 

272,505

 

Ohio

 

3,742

 

54,321

 

121,558

 

25,701

 

205,322

 

New York

 

3,660

 

7,253

 

167,477

 

26,209

 

204,599

 

Arizona

 

53,278

 

36,676

 

79,731

 

5,398

 

175,083

 

Indiana

 

24,422

 

67,429

 

55,280

 

15,246

 

162,377

 

Other

 

19,624

 

141,840

 

1,411,077

 

261,841

 

1,834,382

 

Total

 

$

7,331,991

 

$

3,718,519

 

$

3,071,429

 

$

468,805

 

$

14,590,744

 

 

25.)                           Net Charge-Offs1 vs. Other Banks

(Percent)

 

 

 

2005

 

2006

 

2007

 

2008

 

2009

 

 

 

 

 

 

 

 

 

 

 

 

 

TCF

 

.29

%

.17

%

.30

%

.78

%

1.34

%

Bank of America

 

.83

 

.68

 

.81

 

1.72

 

3.42

 

U.S. Bancorp

 

.51

 

.38

 

.52

 

1.07

 

2.02

 

Associated Banc-Corp

 

.09

 

.12

 

.27

 

.85

 

2.84

 

Huntington

 

.33

 

.31

 

1.42

 

1.83

 

3.76

 

KeyCorp

 

.48

 

.25

 

.38

 

1.52

 

3.37

 

Zions

 

.10

 

.14

 

.17

 

.96

 

2.81

 

Marshall & Ilsley

 

.12

 

.10

 

.59

 

2.74

 

4.26

 

 

1          As a percent of average loans & leases

 


 

26.)                           Summary of Non-Accrual Loans

($000s)

 

At December 31, 2009:

 

Contractual Loan
Balance Owed
By Customer

 

Charge-offs and
Allowance
Recorded

 

Remaining Net
Loan & Lease
Exposure

 

Charge-offs and Allowance
Recorded as a % of
Contractual Loan Balance
Owed By Customer

 

 

 

 

    

 

 

 

 

 

 

Consumer real estate

 

$

170,818

 

$

33,044

 

$

137,774

 

    19.3 %

 

Commercial

 

131,384

 

33,776

 

97,608

 

25.7

 

Leasing and equipment finance

 

50,008

 

14,976

 

35,032

 

29.9

 

Inventory finance

 

771

 

22

 

749

 

  2.9

 

Total

 

$

352,981

 

$

81,818

 

$

271,163

 

23.2

 

 

27.)                           Non-Accrual Loans & Leases

($000s)

 

2009:

 

Consumer
Real Estate

 

Commercial

 

Leasing and
Equipment
Finance

 

Inventory
Finance

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

$

82,936

 

$

68,703

 

$

20,879

 

$

 

$

172,518

 

Additions

 

223,785

 

127,951

 

97,260

 

2,515

 

451,511

 

Charge-offs

 

(43,180

)

(41,663

)

(27,616

)

(64

)

(112,523

)

Transfers to real estate owned or repossessed equipment

 

(85,944

)

(28,151

)

(20,179

)

 

(134,274

)

Return to accrual status

 

(30,274

)

(3,304

)

(3,927

)

 

(37,505

)

Payments

 

(6,136

)

(15,754

)

(15,905

)

(1,680

)

(39,475

)

Other, net

 

(1,887

)

(1,586

)

(504

)

 

(3,977

)

Balance, end of period

 

$

139,300

 

$

106,196

 

$

50,008

 

$

711

 

$

296,275

 

 

28.)                           Summary of Real Estate Owned

($000s)

 

At December 31, 2009:

 

Contractual Loan
Balance Prior to
Non-Performing
Status

 

Charge-offs and
Writedowns
Recorded

 

Other Real
Estate
Owned
Balance

 

Charge-offs and
Writedowns Recorded 
as a % of Contractual 
Loan Balance Prior to
Non-Performing Status

 

 

 

 

    

 

 

 

 

 

 

Consumer real estate

 

$

91,305

 

$

24,349

 

$

66,956

 

    26.7 %

 

Commercial

 

53,738

 

14,926

 

38,812

 

27.8

 

Total

 

$

145,043

 

$

39,275

 

$

105,768

 

27.1

 

 

29.)                           Real Estate Owned

($000’s)

 

2009:

 

Consumer Real Estate

 

Commercial

 

Total

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

$

38,632

 

$

23,033

 

$

61,665

 

Transferred from non-accrual status

 

85,944

 

28,151

 

114,095

 

Voluntarily surrendered

 

16,800

 

453

 

17,253

 

Sales of properties

 

(66,901

)

(9,616

)

(76,517

)

Writedowns

 

(9,731

)

(3,485

)

(13,216

)

Other, net

 

2,212

 

276

 

2,488

 

Balance, end of period

 

$

66,956

 

$

38,812

 

$

105,768

 

 


 

30.)                           Total Deposits

Quarterly Average Balances +13%*

($ millions)

 

 

 

12/05

 

12/06

 

12/07

 

12/08

 

12/09

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of Deposit

 

$

1,887

 

$

2,471

 

$

2,307

 

$

2,449

 

$

1,367

 

Savings

 

2,190

 

2,321

 

2,596

 

2,861

 

5,231

 

Money Market

 

649

 

594

 

598

 

625

 

672

 

Checking

 

4,102

 

4,141

 

3,981

 

3,914

 

4,116

 

Total

 

$

8,828

 

$

9,527

 

$

9,482

 

$

9,849

 

$

11,386

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rate1:

 

1.54

%

2.33

%

2.29

%

1.51

%

.74

%

 

*                 Annual growth rate (‘09 vs. ‘08)

1                   Quarter-to-date

 

31.)                           Banking Fees and Other Revenue1

($ millions)

 

 

 

2005

 

2006

 

2007

 

2008

 

2009

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

85

 

$

92

 

$

94

 

$

96

 

$

90

 

Second Quarter

 

97

 

104

 

106

 

103

 

112

 

Third Quarter

 

102

 

105

 

107

 

107

 

111

 

Fourth Quarter

 

99

 

99

 

106

 

100

 

109

 

Total

 

$

383

 

$

400

 

$

413

 

$

406

 

$

422

 

 

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

 

32.)                           Opt-in Regulations

 

·                  New Federal Reserve legislation prohibits financial institutions from charging NSF fees on certain transactions unless customers opt-in

 

·                  Working aggressively to educate new and existing customers on the benefits of opting-in

 

·                  Replacing Totally Free Checking with new anchor account during the first quarter of 2010

 

·                  Monthly maintenance fee on accounts not meeting certain specific requirements

 

·                  Goal is to remain revenue neutral for 2010

 

33.)                           Card Revenue

($ millions)

 

 

 

2005

 

2006

 

2007

 

2008

 

2009

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

17.6

 

$

21.3

 

$

23.3

 

$

24.8

 

$

25.0

 

Second Quarter

 

19.8

 

22.9

 

24.9

 

26.8

 

26.6

 

Third Quarter

 

21.0

 

24.4

 

25.6

 

26.2

 

26.4

 

Fourth Quarter

 

21.4

 

23.5

 

25.1

 

25.2

 

26.8

 

Total

 

$

79.8

 

$

92.1

 

$

98.9

 

$

103.0

 

$

104.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Volume:

 

$

5,673

 

$

6,465

 

$

6,949

 

$

7,280

 

$

7,308

 

Average Interchange Rate:

 

1.34

%

1.36

%

1.35

%

1.34

%

1.34

%

 

 


 

34.)                           Card Revenue

 

·                  10th largest issuer of Visa Classic debit cards

 

·                  11th largest issuer of Visa Commercial debit cards

 

·                  $7.3 billion in sales volume, up .4% 1

 

·                  20.7 transactions per month on active cards, up 1.7% 1

 

·                  Interchange fees paid by merchants, not customers

 

·                  Potential interchange legislation would likely result in fees being paid by customers

 

1          Annual growth rate (‘09 vs. ‘08)

 

35.)                           Reconciliation of GAAP to Non-GAAP Measures1

($000s)

 

 

 

December 31,

 

 

2009

Computation of total equity to total assets:

 

 

 

Total equity

 

$

1,179,755

 

Total assets

 

$

17,885,175

 

Total equity to total assets

 

6.60

%

 

 

 

 

Computation of tangible realized common equity to tangible assets:

 

 

 

Total equity

 

$

1,179,755

 

Less: Non-controlling interest in subsidiaries

 

4,393

 

Total TCF stockholders’ equity

 

1,175,362

 

Less:

 

 

 

Goodwill

 

152,599

 

Other intangibles

 

1,405

 

Add:

 

 

 

Accumulated other comprehensive loss

 

18,545

 

Tangible realized common equity

 

$

1,039,903

 

 

 

 

 

Total assets

 

$

17,885,175

 

Less:

 

 

 

Goodwill

 

152,599

 

Customer-based intangibles

 

1,405

 

Tangible assets

 

$

17,731,171

 

 

 

 

 

Tangible realized common equity to tangible assets

 

5.86

%

 

1                   In contrast to GAAP-basis measures, tangible realized common equity excludes the effect of goodwill, other intangibles and accumulated other comprehensive income (loss). Management reviews tangible realized common equity as an ongoing measure and has included this information because of current interest in the industry.  The methodology for calculating tangible realized common equity may vary between companies.

 


 

36.)                           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 the following:

* Adverse Economic or Business Conditions, Credit Risks.  Continued or deepening deterioration in general economic and banking industry conditions, or continued increases in unemployment in TCF’s primary banking markets; adverse economic, business and competitive developments such as shrinking interest margins, deposit outflows, deposit account attrition, or an inability to increase the number of deposit accounts; adverse 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 the allowance for loan and lease losses dictated by new market conditions or regulatory requirements.

* Earnings/capital constraints, Liquidity Risks.  Limitations on TCF’s ability to pay dividends or to increase dividends in the future because of financial performance deterioration, regulatory restrictions or limitations; increased deposit insurance premiums, special assessments or other costs related to deteriorating conditions in the banking industry and the economic impact on banks of the Emergency Economic Stabilization Act, as amended (“EESA”); the impact of financial regulatory reform proposals, including possible additional capital requirements; adverse changes in securities markets directly or indirectly affecting TCF’s ability to sell assets or to fund its operations; diminished unsecured borrowing capacity resulting from TCF credit rating downgrades and unfavorable conditions in the credit markets that restrict or limit various funding sources.

* Legislative and Regulatory Requirements.  Consumer protection and supervisory requirements which could include the creation of a new consumer protection agency and limits on Federal preemption for state laws that could be applied to national banks; the imposition of requirements with an adverse impact relating to TCF’s lending, loan collection and other business activities as a result of the EESA, or other legislative or regulatory developments such as mortgage foreclosure moratorium laws; reduction of interchange revenue from debit card transactions; impact of legislative, regulatory or other changes affecting customer account charges and fee income; changes to bankruptcy laws which would result in the loss of all or part of TCF’s security interest due to collateral value declines (so-called “cramdown” provisions); adverse regulatory examinations and resulting enforcement actions, including those provided for under the Bank Secrecy Act; heightened regulatory practices, requirements or expectations, including, but not limited to, requirements related to the Bank Secrecy Act and anti-money laundering compliance activity. (continued)

 

37.)                           Cautionary Statement (continued)

 

* Risks Relating to New Product Introduction. TCF has recently introduced a new anchor retail deposit account product that replaces Totally Free Checking, and that calls for a monthly maintenance fee on accounts not meeting certain specific requirements. TCF is also in the process of implementing new regulatory requirements that prohibit financial institutions from charging NSF fees on point-of-sale and ATM transactions unless customers opt-in. Customer acceptance of the new product changes cannot be predicted with certainty, and these changes may have an adverse impact on TCF’s ability to generate and retain accounts and on its fee income revenue.

* Litigation Risks.  Results of litigation, including class action litigation concerning TCF’s lending or deposit activities or fees or charges, 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 covered litigation or other litigation against Visa.

* Competitive Conditions; Supermarket Branching Risks.  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.

* Accounting, Audit, Tax and Insurance Matters.  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 state or Federal tax assessments or findings in tax audits; lack of or inadequate insurance coverage for claims against TCF.

* Technological and Operational Matters.  Technological, computer related or operational difficulties or loss or theft of information and the possibility that deposit account losses (fraudulent checks, etc.) may increase.

 


 

38.)                           Source References

 

Slide: Corporate Profile

34th largest U.S. bank - Ipreo; 12/31/09

24th largest branch network - SNL Financial, LC; 4Q09

5th largest in campus card relationships - CR80News; Spring 2009

10th largest issuer of Visa Classic - Visa; 3Q09; ranked by sales volume

15th largest bank affiliated leasing company - 2009 Monitor Bank 25

 

Slide: Leasing and Equipment Finance

15th largest bank affiliated leasing company - 2009 Monitor Bank 25

32nd largest equipment finance/leasing company - The Monitor; 2009 Monitor 100

 

Slide: Net Charge-Offs vs. Other Banks

Net charge-off data - SNL Financial, LC; 12/31/09

 

Slide: Card Revenue

10th largest issuer of Visa Classic - Visa; 3Q09; ranked by sales volume

11th largest issuer of Visa Commercial - Visa; 3Q09; ranked by sales volume

 

(Back To Top)