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 29, 2002
TCF Financial Corporation
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
001-10253 |
| 41-1591444 |
(Commission File Number) |
| (IRS Employer Notification No.) |
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)
Item 9. Regulation FD Disclosure
Pursuant to Regulation FD, information is being furnished below with respect to presentations to investors or 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 2001 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 on Forms 10-K and 10-Q. The Company's annual financial statements are subject to independent audit. Certain financial information has not been prepared in accordance with GAAP. 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.
The presentation is also available on the Company's website at www.tcfexpress.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.
TCF Financial Corporation
The Leader In
Convenience Banking
1.) Corporate Profile
At December 31, 2001
· $11.4 billion financial holding company headquartered in Minnesota; 37th largest1 public bank in the U.S. based on market cap
· 375 bank branches, including 234 full-service supermarket branches (4th largest in U.S.)
· 1,341 TCF EXPRESS TELLERSM ATMs, 918 off-site
· 1.25 million checking accounts
· 1.2 million TCF Express Cards (12th largest U.S. Visa debit card issuer ranked by sales volume)2
1 Source: Thompson Financial
2 Source: Visa, at September 30, 2001
2.) Corporate Profile
At December 31, 2001
- Bank branches located in six states
Supermarket |
| 234 |
| Colorado |
| 13 |
Traditional |
| 141 |
| Illinois |
| 179 |
Total |
| 375 |
| Michigan |
| 57 |
|
|
|
| Minnesota |
| 88 |
|
|
|
| Wisconsin |
| 33 |
|
|
|
| Indiana |
| 5 |
3.) Corporate Philosophy
- TCF competes by offering convenient services (open 7 days a week, 360+ days/year, traditional and supermarket branches, TCF EXPRESS TELLER ATMs, TCF Express Cards, phone banking, Internet banking, etc.)
- TCF banks everybody, including middle- and lower-income customers
- TCF is expanding top-line revenue growth through de novo expansion: starting new businesses (i.e. Small Business Banking in 2001), opening new branches and offering new products and services
- TCF is a secured lender, emphasizing credit quality over asset growth
4.) Profit Drivers
- De Novo Expansion
Opened 193 new branches since January 1998 and 27 new branches over the past 12 months. Plan to continue this level of investment in new branches over the next five years. These new branches provide a conveyor belt of growing profitability. - Product Expansion
New products and services over the past five years: TCF Express Cards, self-service coin counting, non-customer check cashing, insurance products, discount brokerage, debt waiver, online banking, campus banking, leasing, small business banking, etc. TCF will continue to expand through strategic initiatives, offering additional products and services to its large and growing customer base.
5.) Profit Drivers
- Power Assets® and Power Liabilities® Growth
Power Assets® (consumer loans, commercial and commercial real estate loans and leases) and low-cost (checking, savings and money market) Power Liabilities® are growing at double digit rates, contributing a significantly high percentage of TCF's profits. - Stock Buy-Back
Purchased 3.7 million shares in 2001 at an average cost of $40.34 per share.
These purchases contributed to TCF's diluted EPS growth of +15% in 2001 and +79% over the past five years.
6.) Power Assets®
7.) Commercial Lending +15%*
|
| 12/97 |
| 12/98 |
| 12/99 |
| 12/00 |
| 12/01 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Commercial Business |
| $ | 240.2 |
| $ | 289.1 |
| $ | 351.4 |
| $ | 410.4 |
| $ | 422.4 |
|
Commercial Real Estate |
| $ | 859.9 |
| $ | 811.4 |
| $ | 1,073.5 |
| $ | 1,371.9 |
| $ | 1,622.5 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
| $ | 1,100 |
| $ | 1,101 |
| $ | 1,425 |
| $ | 1,782 |
| $ | 2,045 |
|
* Annual growth rate
8.) Commercial Loans
At December 31, 2001
- Commercial real estate -- $1,622 million
· 27% apartment loans
· 22% office building loans
· 9% hotel loans
- Commercial business -- $422 million
- Yield 6.96%
- Over-30-day delinquency rate .05%
- 2001 net charge-offs .01%; 2000 net recoveries .05%
- CRE location mix: 86% Midwest, 14% Other
- Approximately 98% secured
9.) Consumer Home Equity Lending +13%*
Loan-to-value |
| 12/97 |
| 12/98 |
| 12/99 |
| 12/00 |
| 12/01 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
80% or less |
| N/A |
| $ | 970.2 |
| $ | 949.0 |
| $ | 988.5 |
| $ | 1,189.7 |
| |
Over 80-90% |
| N/A |
| $ | 453.5 |
| $ | 570.6 |
| $ | 648.2 |
| $ | 802.1 |
| |
Over 90-100% |
| N/A |
| $ | 48.5 |
| $ | 398.9 |
| $ | 486.5 |
| $ | 396.3 |
| |
Over 100% |
| N/A |
| $ | 54.0 |
| $ | 56.5 |
| $ | 45.6 |
| $ | 66.6 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
| $ | 1,520 |
| $ | 1,526 |
| $ | 1,975 |
| $ | 2,169 |
| $ | 2,455 |
|
* Annual growth rate
10.) Consumer Home Equity Loans
At December 31, 2001
- Consumer home equity loans and lines of credit 51% variable rate and 49% fixed rate
- 70% are closed-end loans, 30% lines of credit
- Yield 8.45%
- Over-30-day delinquency rate .70%
- 2001 net charge-offs .17%; 2000 net charge-offs .16%
- Current average loan-to-value 72%
- Average FICO score 696
- Average debt-to-income 33%
11.) Leasing and Equipment Finance +12%*
|
| 12/97 |
| 12/98 |
| 12/99 |
| 12/00 |
| 12/01 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Winthrop |
| $ | 369 |
| $ | 399 |
| $ | 418 |
| $ | 357 |
| $ | 307 |
|
TCF Leasing |
| $ | - |
| $ | - |
| $ | 75 |
| $ | 499 |
| $ | 650 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
| $ | 369 |
| $ | 399 |
| $ | 493 |
| $ | 856 |
| $ | 957 |
|
* Annual growth rate
12.) Leasing and Equipment Finance
At December 31, 2001
- Winthrop Resources Corporation -- specializing in high-tech equipment: computer, telecommunications and point-of-sale
- TCF Leasing, Inc. -- equipment finance
· Transportation - -- truck, trailer and specialty vehicles
· Equipment - -- specializing in middle-market financing
- Uninstalled backlog of $126.1 million
- Over-30-day delinquency rate 1.84%
- 2001 net charge-offs 1.00%; 2000 net charge-offs .33%
13.) Allowance for Loan & Lease Losses
|
| 12/99 |
| 12/00 |
| 12/01 |
| |||
|
| ($ millions) |
| |||||||
|
|
|
|
|
|
|
| |||
Allowance for Loan & Lease Losses |
| $ | 55.8 |
| $ | 66.7 |
| $ | 75.0 |
|
% to Loans |
| .71 | % | .78 | % | .91 | % | |||
14.) Net Charge-Offs
|
| 1999 |
| 2000 |
| 2001 |
| |||
|
| ($ millions) |
| |||||||
|
|
|
|
|
|
|
| |||
Net Charge-Offs |
| $ | 26.4 |
| $ | 3.9 |
| $ | 12.5 |
|
NCOs |
| .35 | % | .05 | % | .15 | % | |||
Non-Performing Assets/Loans & Leases, Net |
| .45 | % | .54 | % | .82 | % | |||
15.) Credit Quality
At December 31, 2001
- With the change in the loan mix, reserves are up $19.3 million from year-end 1999
- Net charge-offs to average loans and leases .15%
- Non-performing assets to loans and leases, net .82%
- Over-30-day delinquency rate .57%
Commercial |
| .05 | % |
Consumer |
| .72 | % |
Residential real estate |
| .38 | % |
Leasing & equipment finance |
| 1.84 | % |
16.) Power Liabilities®
17.) Retail Distribution Growth
|
| 12/97 |
| 12/98 |
| 12/99 |
| 12/00 |
| 12/01* |
|
Supermarket Branches (234) |
| 63 |
| 160 |
| 195 |
| 213 |
| 234 |
|
Traditional Branches (141) |
| 158 |
| 151 |
| 143 |
| 139 |
| 141 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
| 221 |
| 311 |
| 338 |
| 352 |
| 375 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supermarket Branch Openings |
| 15 |
| 99 |
| 34 |
| 22 |
| 21 |
|
Traditional Branch Openings |
| 4 |
| 7 |
| 1 |
| 3 |
| 6 |
|
* Anticipate opening approximately 25 to 30 new branches in 2002
18.) Retail Checking Deposits +15%*
|
| 12/97 |
| 12/98 |
| 12/99 |
| 12/00 |
| 12/01 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Supermarket Branches |
| $ | 138 |
| $ | 272 |
| $ | 354 |
| $ | 475 |
| $ | 591 |
|
Traditional Branches |
| $ | 1,215 |
| $ | 1,340 |
| $ | 1,387 |
| $ | 1,535 |
| $ | 1,715 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
| $ | 1,353 |
| $ | 1,612 |
| $ | 1,741 |
| $ | 2,010 |
| $ | 2,306 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Average Rate |
| .45 | % | .22 | % | .21 | % | .20 | % | .07 | % | |||||
* Annual growth rate
19.) Retail Checking Accounts +10%*
|
| 12/97 |
| 12/98 |
| 12/99 |
| 12/00 |
| 12/01 |
|
|
|
|
|
|
| (000s) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supermarket Branches |
| 144 |
| 260 |
| 351 |
| 428 |
| 511 |
|
Traditional Branches |
| 628 |
| 653 |
| 681 |
| 703 |
| 738 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
| 772 |
| 913 |
| 1,032 |
| 1,131 |
| 1,249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rate |
| .45 | % | .22 | % | .21 | % | .20 | % | .07 | % |
* Annual growth rate
20.) Fee Revenue Per Retail Checking Account +10%*
|
| 1997 |
| 1998 |
| 1999 |
| 2000 |
| 2001 |
| |||||
|
| ($) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Fee Revenue per Retail Checking Account |
| $ | 124 |
| $ | 143 |
| $ | 168 |
| $ | 190 |
| $ | 209 |
|
* Annual growth rate
21.) Supermarket Deposit Growth +13%*
|
| 12/97 |
| 12/98 |
| 12/99 |
| 12/00 |
| 12/01 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Deposits |
| $ | 379 |
| $ | 618 |
| $ | 826 |
| $ | 1,074 |
| $ | 1,213 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Average Rate |
| N/A |
| 2.16 | % | 2.24 | % | 2.73 | % | 1.23 | % | |||||
* Annual growth rate
22.) Supermarket Checking Accounts +19%*
|
| 12/97 |
| 12/98 |
| 12/99 |
| 12/00 |
| 12/01 |
|
|
| (000s) |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Checking Accounts |
| 144 |
| 260 |
| 351 |
| 428 |
| 511 |
|
* Annual growth rate
23.) Supermarket Fee Income Growth +22%*
|
| 1997 |
| 1998 |
| 1999 |
| 2000 |
| 2001 |
| |||||
|
|
|
|
|
| ($ millions) |
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
First Quarter |
| N/A |
| $ | 8.8 |
| $ | 17.4 |
| $ | 23.3 |
| $ | 29.6 |
| |
Second Quarter |
| N/A |
| $ | 13.2 |
| $ | 21.6 |
| $ | 28.5 |
| $ | 35.1 |
| |
Third Quarter |
| N/A |
| $ | 14.7 |
| $ | 23.1 |
| $ | 30.0 |
| $ | 35.3 |
| |
Fourth Quarter |
| N/A |
| $ | 16.8 |
| $ | 24.6 |
| $ | 30.2 |
| $ | 36.7 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
| $ | 22 |
| $ | 53 |
| $ | 87 |
| $ | 112 |
| $ | 137 |
|
* Annual growth rate
24.) Supermarket Consumer Loans +31%*
|
| 12/97 |
| 12/98 |
| 12/99 |
| 12/00 |
| 12/01 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Consumer Loans |
| $ | 88 |
| $ | 108 |
| $ | 193 |
| $ | 233 |
| $ | 305 |
|
* Annual growth rate
25.) Retail Model - Net Income
|
| Year of Existence |
| ||||||||||||||||||||||||||||
|
| 1 |
| 2 |
| 3 |
| 4 |
| 5 |
| 6 |
| 7 |
| 8 |
| 9 |
| 10 |
| ||||||||||
|
| ($ 000s) |
| ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Supermarket Branch |
| $ | (178 | ) | $ | (52 | ) | $ | 47 |
| $ | 111 |
| $ | 161 |
| $ | 204 |
| $ | 239 |
| $ | 264 |
| $ | 290 |
| $ | 311 |
|
Traditional Branch |
| $ | (361 | ) | $ | (164 | ) | $ | (11 | ) | $ | 167 |
| $ | 291 |
| $ | 440 |
| $ | 537 |
| $ | 629 |
| $ | 689 |
| $ | 736 |
|
26.) Retail Model - Average Deposits
|
| Year of Existence |
| ||||||||||||||||||||||||||||
|
| 1 |
| 2 |
| 3 |
| 4 |
| 5 |
| 6 |
| 7 |
| 8 |
| 9 |
| 10 |
| ||||||||||
|
| ($ millions) |
| ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Supermarket Branch |
| $ | 1.1 |
| $ | 3.2 |
| $ | 4.8 |
| $ | 5.9 |
| $ | 6.5 |
| $ | 7.9 |
| $ | 8.4 |
| $ | 8.8 |
| $ | 9.1 |
| $ | 9.3 |
|
Traditional Branch |
| $ | 2.6 |
| $ | 7.3 |
| $ | 11.5 |
| $ | 15.3 |
| $ | 18.1 |
| $ | 21.5 |
| $ | 23.3 |
| $ | 24.8 |
| $ | 26.1 |
| $ | 27.1 |
|
27.) TCF Express Card Revenue +30%*
|
| 1997 |
| 1998 |
| 1999 |
| 2000 |
| 2001 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
First Quarter |
| $ | 0.3 |
| $ | 1.9 |
| $ | 3.5 |
| $ | 6.0 |
| $ | 8.0 |
|
Second Quarter |
| $ | 0.7 |
| $ | 2.7 |
| $ | 4.8 |
| $ | 7.1 |
| $ | 9.3 |
|
Third Quarter |
| $ | 1.1 |
| $ | 3.0 |
| $ | 5.3 |
| $ | 7.5 |
| $ | 10.1 |
|
Fourth Quarter |
| $ | 1.6 |
| $ | 3.5 |
| $ | 5.9 |
| $ | 8.1 |
| $ | 10.0 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
| $ | 3.7 |
| $ | 11.1 |
| $ | 19.5 |
| $ | 28.7 |
| $ | 37.4 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Cards (000s) |
| 602 |
| 774 |
| 929 |
| 1,057 |
| 1,196 |
| |||||
* Annual growth rate
28.) TCF Express Card
- 12th largest U.S. Visa debit card issuer1
- 5.5 million average transactions per month in 2001
- 30.1% increase in the number of customer purchases2
- 13.2% increase in the number of accounts with TCF Express Cards2
- Interchange revenue of $37.4 million in 2001, an increase of 30%2
- TCF Express Phone Card increased activation and usage rate of TCF Express Cards
- 67 million phone minutes awarded for TCF Express Card usage in 2001; 38.6 million minutes awarded in 2000
1 Source: Visa, at September 30, 2001; ranked by sales volume
2 2001 vs. 2000
29.) Number of Free Small Business Checking Accounts +16%*
|
| 12/97 |
| 12/98 |
| 12/99 |
| 12/00 |
| 12/01 |
|
|
| (000s) |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Free Small Business Checking A/Cs |
| 23 |
| 39 |
| 53 |
| 63 |
| 74 |
|
* Annual growth rate
30.) Free Small Business Checking Accounts
At December 31, 2001
- Relationship banking offering multiple product lines to business owners
- Business loans up to $35,000; home equity loans up to $500,000
- Commercial Insurance -- property coverage, liability, workers compensation, health benefits
- Other services -- payroll services, merchant processing, brokerage accounts
- 31,700 activated small business Express Cards
- Over $285 million in checking account deposits
31.) Campus Banking
At December 31, 2001
- Alliances formed with:
· University of Minnesota
· St. Cloud State University in MN
· Northern Illinois University - Dekalb
· Saginaw Valley State University in MI
· University of Michigan (new in 2001)
- 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.
- 63,400 total checking accounts
- $66.7 million in deposits
32.) Diluted EPS Growth +15%*
|
| 1997 |
| 1998 |
| 1999 |
| 2000 |
| 2001 |
| |||||
|
| ($) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
First Quarter |
| $ | 0.40 |
| $ | 0.43 |
| $ | 0.44 |
| $ | 0.51 |
| $ | 0.62 |
|
Second Quarter |
| $ | 0.42 |
| $ | 0.45 |
| $ | 0.49 |
| $ | 0.59 |
| $ | 0.67 |
|
Third Quarter |
| $ | 0.43 |
| $ | 0.42 |
| $ | 0.52 |
| $ | 0.59 |
| $ | 0.69 |
|
Fourth Quarter |
| $ | 0.43 |
| $ | 0.46 |
| $ | 0.55 |
| $ | 0.66 |
| $ | 0.72 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
| $ | 1.69 |
| $ | 1.76 |
| $ | 2.00 |
| $ | 2.35 |
| $ | 2.70 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Cash EPS |
| $ | 1.73 |
| $ | 1.88 |
| $ | 2.10 |
| $ | 2.44 |
| $ | 2.80 |
|
* Annual growth rate
33.) Net Income +11%*
|
| 1997 |
| 1998 |
| 1999 |
| 2000 |
| 2001 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
First Quarter |
| $ | 33.0 |
| $ | 39.9 |
| $ | 37.3 |
| $ | 40.7 |
| $ | 48.2 |
|
Second Quarter |
| $ | 34.9 |
| $ | 40.2 |
| $ | 41.0 |
| $ | 46.7 |
| $ | 52.0 |
|
Third Quarter |
| $ | 37.2 |
| $ | 36.6 |
| $ | 42.8 |
| $ | 46.7 |
| $ | 52.9 |
|
Fourth Quarter |
| $ | 39.9 |
| $ | 39.5 |
| $ | 45.0 |
| $ | 52.2 |
| $ | 54.2 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
| $ | 145 |
| $ | 156 |
| $ | 166 |
| $ | 186 |
| $ | 207 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Cash Net Income |
| $ | 149 |
| $ | 167 |
| $ | 174 |
| $ | 194 |
| $ | 215 |
|
* Annual growth rate
34.) Net Interest Income +10%*
|
| 1997 |
| 1998 |
| 1999 |
| 2000 |
| 2001 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
First Quarter |
| $ | 90.1 |
| $ | 109.2 |
| $ | 104.8 |
| $ | 106.8 |
| $ | 113.8 |
|
Second Quarter |
| $ | 92.6 |
| $ | 107.3 |
| $ | 106.7 |
| $ | 110.2 |
| $ | 119.3 |
|
Third Quarter |
| $ | 99.9 |
| $ | 104.6 |
| $ | 106.6 |
| $ | 110.7 |
| $ | 122.4 |
|
Fourth Quarter |
| $ | 111.0 |
| $ | 104.7 |
| $ | 106.1 |
| $ | 110.8 |
| $ | 125.7 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
| $ | 394 |
| $ | 426 |
| $ | 424 |
| $ | 439 |
| $ | 481 |
|
* Annual growth rate
35.) Fees and Other Revenues +14%*
|
| 1997 |
| 1998 |
| 1999 |
| 2000 |
| 2001 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
First Quarter |
| $ | 39.8 |
| $ | 51.7 |
| $ | 62.4 |
| $ | 71.7 |
| $ | 80.7 |
|
Second Quarter |
| $ | 44.7 |
| $ | 56.9 |
| $ | 67.2 |
| $ | 81.3 |
| $ | 95.7 |
|
Third Quarter |
| $ | 49.0 |
| $ | 64.3 |
| $ | 71.1 |
| $ | 84.1 |
| $ | 95.3 |
|
Fourth Quarter |
| $ | 50.3 |
| $ | 62.7 |
| $ | 73.7 |
| $ | 86.3 |
| $ | 95.6 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
| $ | 184 |
| $ | 236 |
| $ | 274 |
| $ | 323 |
| $ | 367 |
|
3.18% of Average Assets
43% of Total Revenues
* Annual growth rate
36.) TCF Growth Strategies
Core |
| Emerging |
| Strategic |
Business |
| Business |
| Initiatives |
|
|
|
|
|
Traditional |
| Supermarket |
| New Card |
Branches |
| Banking |
| Products |
|
|
|
|
|
Commercial |
| Supermarket |
| Discount |
Lending |
| Consumer |
| Brokerage |
|
| Lending |
|
|
|
|
|
|
|
Consumer |
| TCF Express |
| Small |
Lending |
| Card |
| Business |
|
|
|
| Banking |
|
|
|
|
|
Mortgage |
| Leasing & |
| Debt Waiver |
Lending |
| Equipment |
|
|
|
| Finance |
|
|
TCF EXPRESS |
|
|
| Insurance |
TELLER ATMs |
|
|
| Products |
|
| Internet Banking |
|
|
|
|
|
|
|
|
| Campus Banking |
|
|
37.) New Businesses
- Discount Brokerage
· De novo, launched June 2001
· Cross selling and account growth opportunities
· Expanded fee income generation
- Payment Protection Plan
· Monthly payments
· Another source of fee revenue
- Insurance Products
· "Future Generations" life insurance product
· Putnam CollegeAdvantage Plan
38.) How We Are Doing
Financial
Highlights
39.) Financial Highlights
($ millions, except per-share data)
|
| 2001 |
| 2000 |
| Change |
| ||
Net Interest Income |
| $ | 481.2 |
| $ | 438.5 |
| 10 | % |
Fees & Other Revenues |
| 367.3 |
| 323.5 |
| 14 | % | ||
Top-Line Revenue |
| 848.5 |
| 762.0 |
| 11 | % | ||
|
|
|
|
|
|
|
| ||
Provision |
| 20.9 |
| 14.8 |
| 41 | % | ||
Non-Operating Income |
| 4.2 |
| 12.8 |
| (67 | %) | ||
Non-Interest Expenses |
| 502.0 |
| 457.2 |
| 10 | % | ||
Net Income |
| $ | 207.3 |
| $ | 186.2 |
| 11 | % |
Diluted EPS |
| $ | 2.70 |
| $ | 2.35 |
| 15 | % |
ROA |
| 1.79 | % | 1.72 | % | 7 bps |
| ||
RORE |
| 23.18 | % | 21.53 | % | 165 bps |
| ||
|
|
|
|
|
|
|
| ||
Diluted Cash EPS |
| $ | 2.80 |
| $ | 2.44 |
| 15 | % |
Cash ROA |
| 1.86 | % | 1.79 | % | 7 bps |
| ||
Cash RORE |
| 24.03 | % | 22.40 | % | 163 bps |
| ||
40.) Power Profits
Average Balance ($ millions)
|
| 2001 |
|
|
| ||||
|
| Balance |
| Income* |
| % Profit |
| ||
Commercial Lending |
| $ | 1,900 |
| $ | 16,665 |
| 8 | % |
Consumer Lending |
| 2,513 |
| 34,806 |
| 16 | % | ||
Leasing and Equipment Finance |
| 919 |
| 20,434 |
| 9 | % | ||
Mortgage Banking |
| 210 |
| 5,888 |
| 3 | % | ||
Total Power Assets® |
| $ | 5,542 |
| 77,793 |
| 36 | % | |
|
|
|
|
|
|
|
| ||
Traditional Branches (141) |
| $ | 5,767 |
| 70,685 |
| 33 | % | |
Supermarket Branches (234) |
| 1,132 |
| 13,414 |
| 6 | % | ||
Total Power Liabilities® |
| $ | 6,899 |
| 84,099 |
| 39 | % | |
Total Power Assets & Liabilities |
|
|
| 161,892 |
| 75 | % | ||
|
|
|
|
|
|
|
| ||
Equity |
|
|
| 29,737 |
| 14 | % | ||
Total Power Businesses |
|
|
| 191,629 |
| 89 | % | ||
|
|
|
|
|
|
|
| ||
Treasury & Other |
|
|
| 23,293 |
| 11 | % | ||
Total Cash Net Income |
|
|
| $ | 214,922 |
| 100 | % | |
* Profit center cash net income ($ in 000s)
41.) TCF vs. Top 50 Banks*
Quarter-ended September 30, 2001
|
| TCF |
| Top 50 Banks Average |
|
|
|
|
| ||
|
|
|
| ||
ROA |
| 1.81 | % | 1.34 | % |
|
| TCF |
| Top 50 Banks Average |
|
|
|
|
| ||
|
|
|
| ||
ROCE |
| 23.68 | % | 16.47 | % |
* Represents the fifty largest bank holding companies in the U.S. based on asset size at 09/30/01
Source: Thompson Financial
42.) TCF vs. Top 50 Banks*
Quarter-ended September 30, 2001
|
| TCF |
| Top 50 Banks Average |
|
|
|
|
| ||
|
|
|
| ||
Revenue Growth |
| 12 | % | 1 | % |
|
| TCF |
| Top 50 Banks Average |
|
|
|
|
| ||
|
|
|
| ||
Net Charge-Offs |
| 10bps |
| 63bps |
|
* Represents the fifty largest bank holding companies in the U.S. based on asset size at 09/30/01
Source: Thompson Financial
43.) TCF vs. Top 50 Banks*
September 30, 2001
|
| TCF |
| Top 50 Banks Average |
|
|
|
|
| ||
|
|
|
| ||
QTD Net Interest Margin |
| 4.55 | % | 3.87 | % |
|
| TCF |
| Top 50 Banks Average |
|
|
|
|
| ||
|
|
|
| ||
Price/Last Twelve Months Diluted EPS |
| 17.25x |
| 15.15x |
|
* Represents the fifty largest bank holding companies in the U.S. based on asset size at 09/30/01
Source: Thompson Financial
44.) Return to Shareholders*
|
| Index Value |
| |||||||||||||||||||||||||||||||
Period Ending |
| 12/31/1991 |
| 12/31/1992 |
| 12/31/1993 |
| 12/31/1994 |
| 12/31/1995 |
| 12/31/1996 |
| 12/31/1997 |
| 12/31/1998 |
| 12/31/1999 |
| 12/31/2000 |
| 12/31/2001 |
| |||||||||||
TCF Financial Corporation |
| $ | 100.00 |
| $ | 152.64 |
| $ | 182.83 |
| $ | 228.36 |
| $ | 375.97 |
| $ | 503.68 |
| $ | 800.96 |
| $ | 583.34 |
| $ | 616.35 |
| $ | 1,137.53 |
| $ | 1,254.09 |
|
S&P 500 |
| $ | 100.00 |
| $ | 107.62 |
| $ | 118.47 |
| $ | 120.03 |
| $ | 165.13 |
| $ | 202.89 |
| $ | 270.59 |
| $ | 347.84 |
| $ | 421.04 |
| $ | 382.69 |
| $ | 337.23 |
|
SNL All Bank & Thrift Index |
| $ | 100.00 |
| $ | 137.32 |
| $ | 152.38 |
| $ | 149.01 |
| $ | 231.98 |
| $ | 321.56 |
| $ | 493.61 |
| $ | 523.96 |
| $ | 501.26 |
| $ | 605.54 |
| $ | 614.48 |
|
* Assumes $100 invested December 31, 1991 with dividends reinvested
Source: SNL Securities LC
45.) Market Returns*
|
| Annualized |
| ||||||
|
| 1 Year |
| 3 Years |
| 5 Years |
| 10 Years |
|
TCF Stock |
| 10.3 | % | 29.0 | % | 20.0 | % | 28.8 | % |
S&P 500 Index |
| (11.9 | %) | (1.0 | %) | 10.7 | % | 12.9 | % |
Dow Jones Industrial Average |
| (5.4 | %) | 4.7 | % | 11.0 | % | 14.6 | % |
S&P Bank Composite |
| (2.4 | %) | (1.9 | %) | 6.8 | % | 13.9 | % |
S&P MidCap Index |
| (0.6 | %) | 10.2 | % | 16.1 | % | 15.0 | % |
* Assumes dividend reinvestment
Source: Sit Investment Associates
46.) Cautionary Statement
This investor presentation contains "forward-looking" statements. Forward-looking statements deal with matters that do not relate strictly to historical facts. TCF's future results may differ materially from historical performance and forward-looking statements about TCF's expected financial results or other plans are subject to a number of risks and uncertainties. These include but are not limited to possible legislative changes and adverse economic, business and competitive developments such as shrinking interest margins; deposit outflows; reduced demand for financial services and loan and lease products; changes in accounting policies and guidelines, or monetary and fiscal policies of the federal government; changes in credit and other risks posed by TCF's loan, lease and investment portfolios; technological, computer-related or operational difficulties; adverse changes in securities markets; results of litigation or other significant uncertainties. The terrorist attacks on September 11, 2001 have had an adverse impact on the United States' economy and the Company's business, most likely by reducing capital and consumer spending. The investor presentation provides data as of the end of the fourth quarter 2001 (December 31, 2001). From time-to-time, information may be added, but the financial information will generally be updated only quarterly, and some information may not be current. Financial information presented is not necessarily complete, nor prepared in accordance with generally accepted accounting principles (GAAP). Investors should consult TCF's Annual Report to Shareholders and periodic reports on Forms 10-Q, 10-K and 8-K for additional important information about the Company.
47.)
NYSE: TCB
The Leader In Convenience Banking
Glossary of Financial Terms
Cash Net Income
Net income excluding goodwill charges (on an after-tax basis).
Cash Earnings Per Common share (Cash EPS)
Cash Net Income available to common shareholders divided by weighted average common and common equivalent shares outstanding during the period (diluted Cash EPS).
Cash Return on Average Assets (Cash ROA)
Annualized Cash Net Income divided by average total assets for the period.
Cash Return on Average Realized Common Equity (Cash ROE)
Annualized Cash Net Income divided by average common stockholders' equity for the period, excluding accumulated other comprehensive income (loss).
Fee Revenue Per Retail Checking Account
Fees or charges accumulated under the normal usage of a retail checking account.
Fees and Other Revenues
Non-interest income excluding title insurance revenues (a business sold in 1999) and gains and losses on sales of securities, loan servicing, branches and other businesses.
Net Interest Margin
Annualized net interest income (before provision for credit losses) divided by average interest-earning assets for theperiod.
Profit Center Cash Net Income
Cash Net Income for specific profit divisions as determined for management reporting purposes including all allocations and transfer-pricing conventions deemed appropriate/reasonable by management and subject to modification over time.
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 divided by average common shareholders equity for the period.
Return on Average Realized Common Equity (RORE)
Annualized net income divided by average common stockholders' equity for the period, excluding accumulated other comprehensive income (loss).
Return on Average Realized Tangible Equity (RORTE)
Annualized net income divided by average tangible equity, excluding accumulated other comprehensive income (loss).
Tangible Equity
Total stockholders' equity less goodwill and deposit based intangibles.
Top-Line Revenue
Net interest income plus Fees and Other Revenues.
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on behalf by the undersigned thereunto daily authorized.
Dated: January 29, 2002 |
|
| |
| TCF FINANCIAL CORPORATION | ||
|
|
| |
| BY | /s/ NEIL W. BROWN | |
|
| Neil W. Brown | |
|
|
| |
|
| Its Executive Vice President | |
|
| Chief Financial Officer and Treasurer | |