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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): April 24, 2007

 


 

 

TCF FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

 


 

Delaware

 

001-10253

 

41-1591444

(State or other jurisdiction of

 

(Commission File Number)

 

(IRS Employer Identification No.)

incorporation or organization)

 

 

 

 

 

 

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

(Address of principal executive offices)

 

(612) 661-6500

(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 first quarter of 2007 and does not represent a complete set of financial statements and related footnotes 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 footnotes prepared in accordance with GAAP and management’s discussion and analysis included in the Company’s reports of Forms 10-K and 10-Q.  The Company’s annual financial statements are subject to independent audit.  Please refer to the glossary of financial terms at the end of these materials for a definition of the basis of presentation of such information. These materials replace and supersede investor presentation materials previously furnished as an exhibit to Current Reports on Form 8-K.  These materials are dated April 24, 2007, and TCF does not undertake to update the materials after that date.

 

The presentation is also available on the Company’s web site at www.tcfbank.com.  TCF Financial Corporation’s Annual Report to Shareholders and its reports on Forms 10-K, 10-Q and 8-K and other publicly available information should be consulted for other important information about the Company.

 

Information contained herein, including Exhibit 99.1, shall not be deemed filed for the purposes of the Securities Exchange Act of 1934, nor shall such information and Exhibit be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such a filing.

 

Item 7.01  Regulation FD Disclosure.

 

Information is being furnished herein in Exhibit 99.1 with respect to presentations to investors and others that may be made by executive officers of TCF Financial Corporation (the “Company”).  This information includes selected financial and operational information through the first quarter of 2007 and does not represent a complete set of financial statements and related footnotes 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 footnotes prepared in accordance with GAAP and management’s discussion and analysis included in the Company’s reports of Forms 10-K and 10-Q.  The Company’s annual financial statements are subject to independent audit.  Please refer to the glossary of financial terms at the end of these materials for a definition of the basis of presentation of such information. These materials replace and supersede investor presentation materials previously furnished as an exhibit to Current Reports on Form 8-K.  These materials are dated April 24, 2007, and TCF does not undertake to update the materials after that date.

 

The presentation is also available on the Company’s web site at www.tcfbank.com.  TCF Financial Corporation’s Annual Report to Shareholders and its reports on Forms 10-K, 10-Q and 8-K and other publicly available information should be consulted for other important information about the Company.

 

Information contained herein, including Exhibit 99.1, shall not be deemed filed for the purposes of the Securities Exchange Act of 1934, nor shall such information and Exhibit be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such a filing.

 

2



 

Item 9.01  Financial Statements and Exhibits.

 

(c)          Exhibits.

 

Exhibit No.

 

Description

 

 

 

99.1

 

Investor Presentation of TCF Financial Corporation, dated April 24, 2007

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

TCF FINANCIAL CORPORATION

 

 

 

 

 

/s/ Lynn A. Nagorske

 

Lynn A. Nagorske,
Chief Executive Officer and Director
(Principal Executive Officer)

 

 

 

 

 

/s/ Thomas F. Jasper

 

Thomas F. Jasper, Executive Vice President
and Chief Financial Officer
(Principal Financial Officer)

 

 

 

 

 

/s/ David M. Stautz

 

David M. Stautz, Senior Vice President,
Controller and Assistant Treasurer
(Principal Accounting Officer)

 

 

Dated:    April 24, 2007

 

3


(Back To Top)

Section 2: EX-99.1 (EX-99.1)

Exhibit 99.1

TCF Financial Corporation

First Quarter 2007 Investor Presentation

The leader in convenience banking

 

1.)                                  Corporate Profile

 

At March 31, 2007

 

                                          $14.9 billion financial holding company headquartered in Minnesota

 

                                          41st largest1 U.S. based bank by asset size

 

                                          443 bank branches, 126 branches opened since January 1, 2002

 

                                          25th largest branch network2

 

                                          1,706 ATMs free to TCF customers; 1,200 off-site

 

                                          13th largest issuer of VISA® Classic debit cards3

 

                                          18th largest bank-owned equipment finance/leasing company in the U.S.4

 

                                          ROA 2.24%;  ROE 31.81%;  ROTE5 37.38%

 

                                          2,406,725 deposit accounts

 

1  Source:  CapitalBridge; 12/31/06

2  Source: SNL Financial, LC; 1Q07

3  Source: VISA; 4Q06; ranked by sales volume

4  Source: Equipment Leasing Association; 7/06

5  Excludes the impact of intangibles (see reconciliation slide in the appendix)

 

2.)                                  Corporate Profile

 

                                          Bank branches located in seven states

 

 

 

At 3/31/07

 

At 1/1/02

 

Traditional

 

190

 

134

 

Supermarket

 

241

 

234

 

Campus

 

12

 

7

 

Total

 

443

 

375

 

 

 

 

 

 

 

 

 

At 3/31/07

 

At 1/1/02

 

Minnesota

 

108

 

88

 

Illinois

 

196

 

179

 

Michigan

 

55

 

57

 

Colorado

 

44

 

13

 

Wisconsin

 

33

 

33

 

Indiana

 

6

 

5

 

Arizona

 

1

 

 

Total

 

443

 

375

 

 

3.)                                  What Makes TCF Different

 

                                          Convenience

                                            TCF banks a large and diverse customer base by offering a host of convenient banking services:

                                          Open seven days a week, 364 days/year

                                          Traditional, supermarket and campus branches

                                          1,706 free ATMs

                                          Free debit cards

                                          No purchase-fee gift cards

                                          Free coin counting

                                          TCF® Totally Free Online banking

 

                                          De Novo Expansion

                                            TCF is increasing its market share through de novo expansion:

                                          Opening new branches

                                          Arizona

                                          Starting new businesses

                                          Offering new products and services

 



 

4.)                                  What Makes TCF Different

 

                                          Power Assets® and Power Liabilities®

                                            Power Assets® (consumer loans, commercial real estate and business loans, and leasing and equipment finance)

                                            and Power Liabilities® (checking, savings, money market and certificates of deposit accounts)

                                            are growing and contribute a high percentage of TCF’s profits.

 

                                          Credit Quality

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

 

5.)                                  Share Repurchase Program

 

                                          Repurchased 1.1 million shares of common stock during the first quarter of 2007 at an average cost of $26.44 per share

 

                                          On April 14, 2007, the Board of Directors authorized a new stock repurchase program for the company to acquire up to five percent of TCF common stock, or an additional 6.5 million shares.  TCF has a total of 8.2 million shares authorized under its stock repurchase programs.

 

6.)                                  Return of Net Income to Stockholders

($ millions)

 

 

 

Net

 

Dividends

 

Stock

 

 

 

% of Net

 

 

 

Income

 

Paid

 

Repurchase

 

Total

 

Income

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

$

215.9

 

$

93.0

 

$

150.4

 

$

243.4

 

113

%

2004

 

255.0

 

104.0

 

116.1

 

220.1

 

86

 

2005

 

265.1

 

114.5

 

93.5

 

208.0

 

78

 

2006

 

244.9

 

121.4

 

101.0

 

222.4

 

91

 

20071

 

82.7

 

31.6

 

28.0

 

59.7

 

72

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1,063.6

 

$

464.5

 

$

489.0

 

$

953.6

 

90

%

 

1  Year-to-date

 

7.)                                  Consumer Home Equity Lending +12%*

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

3/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

3,588

 

$

4,382

 

$

5,149

 

$

5,883

 

$

5,983

 

 

*    Twelve-month growth rate

 

8.)                                  Consumer Home Equity Loans

 

At March 31, 2007

 

                                          80% amortizing loans, 20% lines of credit

 

                                          65% are 1st mortgages, 35% are 2nd mortgages

 

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

 

                                          Average home value of $241,2231

 

                                          Yield 7.40%

 

                                          Over-30-day delinquency rate .46%  2

 

                                          Net charge-offs: 2007 = .22%³, 2006 = .13%, 2005 = .10%

 

                                          Average FICO score 721

 

1    Based on most recent appraisal values known to TCF

2    Excludes non-accrual loans

3   Annualized

 

9.)                                  Commercial Lending

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

3/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Business

 

$

429.4

 

$

436.7

 

$

435.2

 

$

552.0

 

$

561.4

 

Commercial Real Estate

 

1,916.7

 

2,154.4

 

2,297.5

 

2,390.7

 

2,362.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

2,346

 

$

2,591

 

$

2,733

 

$

2,943

 

$

2,923

 

 



 

10.)                           Commercial Loans

 

At March 31, 2007

 

                                          Commercial real estate

                                          24% retail services

                                          22% apartment loans

                                          16% office buildings

 

                                          Commercial business — $561 million

 

                                          Yield 6.80%

 

                                          Over-30-day delinquency rate .17%1

 

                                          Net charge-offs/(recoveries): 2007 = .08%², 2006 = .02% , 2005 = (.08)%

 

                                          Approximately 98% of all commercial loans secured

 

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

 

1     Excludes non-accrual loans

2     Annualized

 

11.)                           Leasing and Equipment Finance 1 +18%*

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

3/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Leasing and Equipment Finance

 

$

1,162

 

$

1,389

 

$

1,560

 

$

1,899

 

$

1,926

 

 

1     Includes operating leases

*    Twelve-month growth rate

 

12.)                           Leasing and Equipment Finance

 

At March 31, 2007

 

                                          18th largest bank-owned equipment finance/leasing company in the U.S.1

 

                                          37th largest equipment finance/leasing company in the U.S.2

 

                                          Equipment type

                                          19% specialty vehicle

                                          17% manufacturing

                                          17% construction

                                          15% medical

                                          12% technology and data processing

 

                                          Yield 7.58%

 

                                          Originations: 2007 = $235 million, 2006 = $1.1 billion

 

                                          Uninstalled backlog of $279.5 million; up $29.8 million from year-end 2006

 

                                          Over-30-day delinquency rate .39% 3

 

                                          Net charge-offs/(recoveries): 2007 = (.18)%4, 2006 = .29%, 2005 = 1.50%5

 

1    Source: Equipment Leasing Association; 7/06

2    Source: Equipment Leasing Association; 6/06

3    Excludes non-accrual loans and leases

4    Annualized

5    Net charge-offs excluding leveraged lease were .18%

 



 

13.)                           Allowance for Loan & Lease Losses

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

3/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan & Lease Losses

 

$

72.5

 

$

75.4

 

$

55.8

 

$

58.5

 

$

60.5

 

Net Charge-offs (NCO)

 

$

19.6

 

$

17.5

 

$

28.2

 

$

18.0

 

$

2.7

 

 

 

 

 

 

 

 

 

 

 

 

 

As a % of Loans & Leases:

 

 

 

 

 

 

 

 

 

 

 

Allowance

 

.87

%

.80

%

.55

%

.52

%

.53

%

NCO

 

.24

%

.20

%

.29

%

.17

%

.10

% 1

Coverage Ratio

 

3.7

X

4.3

X

2.0

X

3.3

X

5.6

X 1

 

1    Annualized

 

14.)                           Delinquencies (Over 30-Day)1

(Percent)

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

3/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Delinquencies

 

.47

%

.37

%

.43

%

.63

%

.41

%

 

 

 

 

 

 

 

 

 

 

 

 

Delinquencies

 

$

38.7

 

$

34.4

 

$

43.6

 

$

71.7

 

$

46.8

 

 

1     Excludes non-accrual loans and leases

 

15.)                           Non-Performing Assets

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

3/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Accrual Loans and Leases

 

$

35.4

 

$

46.9

 

$

29.7

 

$

43.2

 

$

55.1

 

Real Estate Owned

 

33.5

 

17.2

 

17.7

 

22.4

 

27.2

 

Total

 

$

68.9

 

$

64.1

 

$

47.4

 

$

65.6

 

$

82.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Reserves/NAs:

 

205

%

161

%

188

%

136

%

110

%

NPAs/Assets:

 

.61

%

.52

%

.35

%

.45

%

.55

%

 

 

16.)                           Total Deposits +6%*

Average Balances

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

3/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of Deposit

 

$

1,744

 

$

1,494

 

$

1,740

 

$

2,291

 

$

2,514

 

Money Market

 

887

 

764

 

641

 

621

 

610

 

Savings

 

2,072

 

1,936

 

2,076

 

2,306

 

2,394

 

Checking

 

3,073

 

3,582

 

4,023

 

4,190

 

4,219

 

Total

 

$

7,776

 

$

7,776

 

$

8,480

 

$

9,408

 

$

9,737

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rate:

 

.73

%

.55

%

1.15

%

2.08

%

2.38

%

 

 

 

 

 

 

 

 

 

 

 

 

# of Deposit Accounts

 

2,150

 

2,216

 

2,296

 

2,427

 

2,407

 

 

*   Twelve-month growth rate

 



 

 

17.)                           Premier Checking & Savings Deposits + 25%*

Average Balances

($ 000s)

 

 

 

12/31/04

 

12/31/05

 

12/31/06

 

3/31/07

 

 

 

 

 

 

 

 

 

 

 

Premier Savings

 

$

85

 

$

427

 

$

899

 

$

1,070

 

Premier Checking

 

199

 

642

 

1,001

 

1,074

 

Total

 

$

284

 

$

1,069

 

$

1,900

 

$

2,144

 

 

 

 

 

 

 

 

 

 

 

Average Rate:

 

1.61

%

2.73

%

3.62

%

3.69

%

 

 

 

 

 

 

 

 

 

 

1-month LIBOR spread

 

(.11

)

(.65

)

(1.48

)

(1.63

)

 

*    Twelve-month growth rate

 

18.)                           Banking Fees and Other Revenue¹

($ millions)

 

 

 

2003

 

2004

 

2005

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

82.1

 

$

87.7

 

$

88.2

 

$

94.4

 

$

96.2

 

Second Quarter

 

92.8

 

104.5

 

100.1

 

106.7

 

 

Third Quarter

 

94.3

 

103.0

 

104.7

 

108.2

 

 

Fourth Quarter

 

90.6

 

98.8

 

100.9

 

101.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

360

 

$

394

 

$

394

 

$

411

 

$

96

 

 

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

 

19.)                           Card Revenue +9%*

($ millions)

 

 

 

2003

 

2004

 

2005

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

13.2

 

$

13.5

 

$

17.6

 

$

21.3

 

$

23.3

 

Second Quarter

 

14.8

 

16.0

 

19.8

 

22.9

 

 

Third Quarter

 

12.9

 

16.3

 

21.0

 

24.4

 

 

Fourth Quarter

 

12.1

 

17.7

 

21.4

 

23.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

53.0

 

$

63.5

 

$

79.8

 

$

92.1

 

$

23.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Volume:

 

$

3,899

 

$

4,735

 

$

5,673

 

$

6,465

 

$

1,657

 

 

 

 

 

 

 

 

 

 

 

 

Avg. Off-line Interchange Rate:

 

1.43

%

1.40

%

1.43

%

1.45

%

1.43

%1

 

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

1     Year-to-date

 

20.)                           Card Revenue

 

                                          13th largest issuer of VISA® Classic debit cards1

 

                                          14th largest issuer of VISA® Commercial debit cards1

 

                                          9.3% increase in sales volume 2

 

                                          Number of active accounts up 28,303, or 3.6%2, to 814,520

 

                                          16.5 transactions per month on active cards, up 6.5% 2

 

1   Source: VISA; 4Q06; ranked by sales volume

2   1Q07 vs. 1Q06

 



 

21.)                           Small Business Checking and Money Market

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

3/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Small Business Checking Deposits

 

$

461

 

$

546

 

$

607

 

$

614

 

$

588

 

Money Market Deposits

 

1

 

17

 

89

 

116

 

136

 

Total

 

$

462

 

$

563

 

$

696

 

$

730

 

$

724

 

 

 

 

 

 

 

 

 

 

 

 

 

 # of Accounts

 

102,607

 

113,979

 

124,145

 

135,861

 

135,249

 

 

22.)                           Small Business Services and Products

 

At March 31, 2007

 

                                          $588 million in 0% interest checking account deposits

 

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

 

                                          101,790 TCF Business Check CardsSM

 

                                          TCF Miles Plus Business Check CardSM loyalty program

 

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

 

23.)                           New Branch Expansion

 

24.)                           Total New Branches

Branches opened since January 1, 2002

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2007

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

12/06

 

3/07

 

Forecast

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supermarket Branches

 

15

 

20

 

31

 

38

 

43

 

44

 

49

 

Traditional and Campus Branches

 

12

 

26

 

45

 

66

 

80

 

82

 

94

 

Total

 

27

 

46

 

76

 

104

 

123

 

126

 

143

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

# of Branches Opened

 

27

 

19

 

30

 

28

 

19

 

4

 

20

 

Percent of Total

 

7

%

11

%

18

%

23

%

27

%

28

%

31

%

 

25.)                           New Traditional Branch Model - Net Income

($ 000s)

 

 

 

Year of Existence

 

 

 

1

 

2

 

3

 

4

 

5

 

6

 

7

 

8

 

9

 

10

 

Net Income1

 

$

(386

)

$

(103

)

$

(5

)

$

182

 

$

237

 

$

355

 

$

417

 

$

450

 

$

556

 

$

645

 

 

Traditional branch capital expenditure $3.5 million

 

1   Includes deposits and consumer lending

 

26.)                           New Branch Total Deposits +28%*

Branches opened since January 1, 2002

($ millions)

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

12/06

 

3/07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

45

 

$

116

 

$

287

 

$

782

 

$

1,076

 

$

1,159

 

 

*    Twelve-month growth rate

 



 

27.)                           New Branch Total Deposit Accounts +37%*

Branches opened since January 1, 2002

(000s)

 

 

 

12/02

 

12/03

 

12/04

 

12/05

 

12/06

 

3/07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit Accounts

 

$

35

 

$

67

 

$

127

 

$

200

 

$

290

 

$

313

 

 

*    Twelve-month growth rate

 

28.)                           New Branch Banking Fees & Other Revenue1 +29%*

Branches opened since January 1, 2002

($ millions)

 

 

 

2002

 

2003

 

2004

 

2005

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

 

$

1.0

 

$

3.4

 

$

7.6

 

$

11.6

 

$

15.0

 

Second Quarter

 

.1

 

1.6

 

6.1

 

9.9

 

14.2

 

 

Third Quarter

 

.3

 

2.1

 

7.0

 

10.9

 

14.8

 

 

Fourth Quarter

 

.7

 

2.5

 

7.6

 

11.3

 

14.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1.1

 

$

7.2

 

$

24.1

 

$

39.7

 

$

54.8

 

$

15.0

 

 

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

*    Twelve-month growth rate

 

29.)                           Campus Banking

 

At March 31, 2007

 

                                          Alliances with the University of Minnesota, the University of Michigan and the University of Illinois plus eight other colleges including DePaul University in Chicago, Milwaukee Area Technical College, Northern Michigan University and Eastern Michigan University

 

                                          Multi-purpose campus card serves as a school identification card, ATM card, library card, security card, health care card, phone card, stored value card for vending machines, laundry, etc.

 

                                          Ranked 6th largest in number of campus card banking relationships in the U.S.1

 

                                          104,137 total deposit accounts

 

                                          $187.7 million in total deposits

 

1   Source: CR80News 2006 Banking Partner Survey

 



 

30.)                           New Products and Services

 

                                          TCF  Power CheckingSM

 

                                          TCF® Visa® Gift Cards

 

                                          Merchant Gift Cards

 

                                          TCF MILES PLUSSM Card Loyalty Programs

                                          Premier (Retail)

                                          Small Business

 

                                          Western Union Money Transfers

 

                                          Electronic Statement Delivery

 

                                          TCF Express Check Conversion

 

                                          TCF Express Remote Deposit

 

                                          Medical Equipment Leasing

 

31.)                           Financial Highlights

 

32.)                           Dividend History

 

 

 

1997

 

1998

 

1999

 

2000

 

2001

 

2002

 

2003

 

2004

 

2005

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends Paid

 

$

.23

 

$

.31

 

$

.36

 

$

.41

 

$

.50

 

$

.58

 

$

.65

 

$

.75

 

$

.85

 

$

.92

 

.2425

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend Payout Ratio:

 

28

%

35

%

36

%

35

%

37

%

37

%

43

%

40

%

43

%

48

%

37

 

10-year compounded annual growth rate of 17% is the 7th highest among the 50 largest banks in the country 1

 

1  Source:  CapitalBridge

2  Year-to-date

 

33.)                           Financial Highlights

($ millions, except per-share data)

 

 

 

Year-to-Date

 

 

 

 

 

 

 

2007

 

2006

 

Change

 

 

 

Net Interest Income

 

$

135.5

 

$

131.2

 

3.3

%

 

 

Fees & Other Revenue:

 

 

 

 

 

 

 

 

 

Banking

 

96.2

 

94.4

 

1.9

 

 

 

Other

 

15.9

 

20.2

 

(21.3

)

 

 

Total Fees and Other Revenue

 

112.1

 

114.6

 

(2.2

)

 

 

Gain on Sales of Branches and Real Estate

 

31.2

 

2.9

 

N.M.

 

 

 

Total Non-Interest Income

 

143.3

 

117.5

 

22.0

 

 

 

Total Revenue

 

278.8

 

248.7

 

12.1

 

 

 

Provision for Credit Losses

 

4.7

 

1.2

 

N.M.

 

 

 

Non-Interest Expense

 

164.2

 

160.3

 

2.4

 

 

 

Net Income

 

82.7

 

58.2

 

42.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

.65

 

$

.45

 

 

 

 

 

 

 

ROA

 

2.24

%

1.71

%

 

 

 

 

ROE

 

31.81

%

23.82

%

 

 

 

 

ROTE1

 

37.38

%

28.44

%

 

 

 

 

 

1  Excludes the impact of intangibles (see reconciliation slide in the appendix)

 



 

34.)                           Significant Financial Items

($ 000s)

 

 

 

Year-to-Date

 

 

 

 

 

2007

 

2006

 

Change

 

Branch Sales

 

$

31,173

 

$

 

$

31,173

 

Land and Building Sales

 

 

2,928

 

(2,928

)

Sale of Mortgage Servicing Rights

 

 

1,601

 

(1,601

)

Total Asset Sale Gains

 

31,173

 

4,529

 

26,644

 

 

 

 

 

 

 

 

 

Total, pre-tax

 

$

31,173

 

$

4,529

 

$

26,644

 

 

 

 

 

 

 

 

 

Income Tax Expense Reductions

 

8,469

 

 

8,469

 

 

 

 

 

 

 

 

 

Total, after-tax

 

$

53,862

 

$

55,199

 

$

(1,337

)

 

 

 

 

 

 

 

 

Impact on Diluted EPS

 

$

.23

 

$

.02

 

$

.21

 

 

35.)                           Michigan Branch Sales

 

                  10 branches sold; transaction completed on March 23, 2007

 

                  $241 million in total deposits

 

                  Sales Price-11.5% plus real estate

 

                  Pre-tax gain on sale - $31.2 million, or 16 cents per diluted share after tax

 

36.)                           Power ProfitsSM

Average Balance ($ millions)

Profit center net income ($ 000s)

 

 

 

 

 

YTD 2007

 

 

 

 

 

Balance

 

Net Income

 

%

 

Commercial Banking

 

$

2,932

 

$

6,198

 

8

%

Consumer Lending

 

5,960

 

9,925

 

12

 

Leasing and Equipment Finance

 

1,838

 

8,828

 

11

 

Total Power Assets®

 

$

10,730

 

24,951

 

31

 

 

 

 

 

 

 

 

 

Traditional and Campus Branches (202)

 

7,348

 

16,009

 

19

 

Supermarket Branches (241)

 

2,168

 

7,313

 

9

 

Michigan Branches Sold (10)

 

221

 

20,688

 

25

 

Total Power Liabilities®

 

$

9,737

 

44,010

 

53

 

Total Power Assets & Liabilities

 

 

 

68,961

 

84

 

Equity and Other

 

 

 

13,763

 

16

 

Net Income

 

 

 

$

82,724

 

100

%

 



 

37.)                           Return to Stockholders1 +17%*

 

 

 

 

 

SNL All

 

 

 

Period Ending

 

TCF

 

Bank & Thrift

 

S&P 500

 

6/86

 

$

100.00

 

$

100.00

 

$

100.00

 

3/87

 

$

114.03

 

$

116.90

 

$

122.03

 

3/88

 

$

71.02

 

$

95.55

 

$

111.85

 

3/89

 

$

83.69

 

$

116.13

 

$

132.15

 

3/90

 

$

95.30

 

$

120.40

 

$

157.62

 

3/91

 

$

118.86

 

$

127.18

 

$

180.33

 

3/92

 

$

161.09

 

$

186.01

 

$

200.24

 

3/93

 

$

278.25

 

$

250.20

 

$

230.74

 

3/94

 

$

272.25

 

$

233.05

 

$

234.14

 

3/95

 

$

395.48

 

$

254.92

 

$

270.59

 

3/96

 

$

680.57

 

$

378.21

 

$

357.55

 

3/97

 

$

758.58

 

$

505.12

 

$

428.31

 

3/98

 

$

1,323.55

 

$

834.13

 

$

633.90

 

3/99

 

$

1,042.41

 

$

829.82

 

$

750.92

 

3/00

 

$

979.34

 

$

813.11

 

$

885.64

 

3/01

 

$

1,598.12

 

$

923.93

 

$

693.66

 

3/02

 

$

2,277.21

 

$

1,022.67

 

$

695.34

 

3/03

 

$

1,778.44

 

$

874.59

 

$

523.17

 

3/04

 

$

2,334.63

 

$

1,254.24

 

$

706.90

 

3/05

 

$

2,550.07

 

$

1,261.13

 

$

754.21

 

3/06

 

$

2,499.46

 

$

1,290.98

 

$

842.65

 

3/07

 

$

2,651.80

 

$

1,417.50

 

$

942.34

 

 

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

*   Annualized return since June 18, 1986

Source:  SNL Financial, LC and S&P

 

38.)                           Cautionary Statement

 

This presentation and other reports issued by the Company, including reports filed with the SEC, may contain “forward-looking” statements that deal with future results, plans or performance. In addition, TCF’s management may make such statements orally to the media, or to securities analysts, investors or others. Forward-looking statements deal with matters that do not relate strictly to historical facts. TCF’s future results may differ materially from historical performance and forward-looking statements about TCF’s expected financial results or other plans 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, adoption of proposed federal legislation reducing interest subsidies and other benefits available to TCF in its education lending programs; adverse findings in tax audits or regulatory examinations; changes in credit and other risks posed by TCF’s loan, lease and investment portfolios, including declines in commercial or residential real estate values or changes in allowance for loan and lease losses methodology dictated by new regulatory requirements; imposition of vicarious liability on TCF as lessor in its leasing operations; denial of insurance coverage for claims made by TCF; technological, computer-related or operational difficulties or loss or theft of information; adverse changes in securities markets; and results of litigation, including reductions in card revenues resulting from litigation brought by various merchants or merchant organizations against Visa; or other significant uncertainties. Investors should consult TCF’s Annual Report on Form 10-K, and Forms 10-Q and 8-K for additional important information about the Company.

 



 

39.)                           NYSE: TCB

The Leader In Convenience Banking

 

Stock Price Performance

(In Dollars)

 

Year Ending

 

Stock Price

 

Dividends Paid

 

12/97

 

 

$

 16.97

 

$

.23

 

12/98

 

 

$

12.09

 

$

.31

 

12/99

 

 

$

12.44

 

$

.36

 

12/00

 

 

$

22.28

 

$

.41

 

12/01

 

 

$

23.99

 

$

.50

 

12/02

 

 

$

21.85

 

$

.58

 

12/03

 

 

$

25.68

 

$

.65

 

12/04

 

 

$

32.14

 

$

.75

 

12/05

 

 

$

27.14

 

$

.85

 

12/06

 

 

$

27.42

 

$

.92

 

3/07

 

 

$

26.36

 

$

.97

*

 

*   Annualized

 

40.)                           Appendix

 

41.)                           Diluted EPS

 

 

 

1997

 

1998

 

1999

 

2000

 

2001

 

2002

 

2003

 

2004

 

2005

 

2006

 

20071

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

.84

 

$

.88

 

$

1.00

 

$

1.17

 

$

1.35

 

$

1.58

 

$

1.53

 

$

1.86

 

$

2.00

 

$

1.90

 

$

.65

 

 

1 Year-to-date

 

42.)                           Net Income

($ millions)

 

 

 

2003

 

2004

 

2005

 

2006

 

20071

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

60.1

 

$

60.7

 

$

63.5

 

$

58.2

 

$

82.7

 

Second Quarter

 

60.3

 

65.2

 

70.6

 

67.1

 

 

Third Quarter

 

36.0

 

61.7

 

65.5

 

65.9

 

 

Fourth Quarter

 

59.5

 

67.4

 

65.5

 

53.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

216

 

$

255

 

$

265

 

$

245

 

$

83

 

 

1   Year-to-date

 



 

43.)                           Net Interest Income

($ millions)

 

 

 

2003

 

2004

 

2005

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

$

122.4

 

$

118.4

 

$

129.1

 

$

131.2

 

$

135.5

 

Second Quarter

 

119.8

 

122.4

 

131.3

 

135.4

 

 

Third Quarter

 

119.9

 

124.5

 

128.1

 

135.0

 

 

Fourth Quarter

 

119.1

 

126.5

 

129.3

 

135.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

481

 

$

492

 

$

518

 

$

538

 

$

136

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Margin:

 

4.54

%

4.54

%

4.46

%

4.16

%

4.00

% 1

 

1   Year-to-date (annualized)

 

44.)                           Risk-Based Capital

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

3/07

 

 

 

 

 

 

 

 

 

 

 

 

 

Actual

 

$

842

 

$

959

 

$

1,050

 

$

1,173

 

$

1,201

 

Well Capitalized Requirement

 

$

785

 

$

881

 

$

983

 

$

1,057

 

$

1,065

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1:

 

9.75

%

9.12

%

8.79

%

8.65

%

8.83

%

Total:

 

10.73

%

10.88

%

10.68

%

11.10

%

11.28

%

Target (10.6%):

 

$

824

 

$

934

 

$

1,042

 

$

1,120

 

$

1,129

 

Excess RBC:

 

$

57

 

$

77

 

$

67

 

$

116

 

$

136

 

Excess Over Target:

 

$

18

 

$

25

 

$

8

 

$

53

 

$

73

 

 

45.)                           One Year Interest Rate Gap

($ millions)

 

 

 

12/03

 

12/04

 

12/05

 

12/06

 

3/07

 

Adjusted Gap

 

$

161

 

$

585

 

$

318

 

$

(630

)

$

(518

)

 

 

 

 

 

 

 

 

 

 

 

 

% of Total Assets

 

1.0

%

4.7

%

2.4

%

(4.3

)%

(3.5

)%

 

46.)                           Power Asset Geographic Profile

($ millions)

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

Consumer

 

Real Estate

 

Leasing &

 

 

 

 

 

Home Equity

 

& Commercial

 

Equipment

 

 

 

At March 31, 2007:

 

& Other

 

Business

 

Finance

 

Total

 

Minnesota

 

$

2,327

 

$

776

 

$

69

 

$

3,172

 

Illinois

 

1,819

 

621

 

63

 

2,503

 

Michigan

 

1,053

 

843

 

85

 

1,981

 

Wisconsin

 

499

 

419

 

38

 

956

 

Colorado

 

279

 

34

 

34

 

347

 

California

 

2

 

18

 

246

 

266

 

Florida

 

7

 

36

 

140

 

183

 

Texas

 

1

 

2

 

108

 

111

 

Arizona

 

9

 

15

 

78

 

102

 

Indiana

 

19

 

19

 

31

 

69

 

Other

 

27

 

140

 

958

 

1,125

 

Total

 

$

6,042

 

$

2,923

 

$

1,850

 

$

10,815

 

 



 

47.)                         Consumer Home Equity and Commercial Loans

Quarterly Average Balances

($ millions)

 

 

 

 

 

 

 

Change

 

 

 

 

 

 

 

Inc./(Dec.)

 

 

 

3/31/07

 

3/31/06

 

$

 

%

 

Consumer Home Equity:

 

 

 

 

 

 

 

 

 

Variable-rate

 

$

1,443

 

$

1,866

 

$

(423

)

(23

)%

Yield

 

8.83

%

8.20

%

63

bps

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-rate

 

$

4,476

 

$

3,350

 

$

1,126

 

34

%

Yield

 

6.95

%

6.72

%

23

bps

 

 

 

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

Variable-rate

 

$

1,036

 

$

1,094

 

$

(58

)

(5

)%

Yield

 

7.64

%

7.08

%

56

bps

 

 

 

 

 

 

 

 

 

 

 

 

Fixed- and adjustable-rate

 

$

1,896

 

$

1,685

 

$

211

 

13

%

Yield

 

6.38

%

6.18

%

20

bps

 

 

 

48.)                           Customer Payment Activity

Transaction Volume

(millions)

 

 

 

 

 

 

 

% Increase/

 

 

 

2007 1

 

2006 1

 

Decrease

 

Checks

 

20.4

 

24.2

 

(15.8

)%

ACH

 

10.2

 

8.4

 

21.6

%

ATM

 

7.7

 

8.1

 

(5.0

)%

Debit Card Purchases

 

45.6

 

41.5

 

9.8

%

 

 Year-to-Date 1Q07 vs. 1Q06

 

49.)                        Net Charge-Offs by Business Line

 

 

 

 

 

 

 

 

 

 

 

YTD1

 

 

 

2003

 

2004

 

2005

 

2006

 

2007

 

Consumer home equity

 

.11

%

.09

%

.10

%

.13

%

.22

%

Total Consumer

 

.30

 

.28

 

.19

 

.22

 

.20

 

Commercial real estate

 

.07

 

.02