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): August 23, 2002
TCF®
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 second quarter of 2002 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.
2
TCF Financial Corporation
The Leader In
1.) Corporate Profile
At June 30, 2002
• $11.5 billion financial holding company headquartered in Minnesota; 38th largest(1) public bank in the U.S. based on market cap
• 378 bank branches, including 238 full-service supermarket branches (4th largest in U.S.)
• 1,134 EXPRESS TELLER® ATMs, 707 off-site
• 1.3 million checking accounts
• 1.3 million TCF Express Cards (11th largest U.S. Visa debit card issuer ranked by sales volume)(2)
(1) Source: Thomson Financial/Carson
(2) Source: Visa, at March 31, 2002
2.) What TCF Does Not Do
• Unconsolidated subsidiaries, partnerships, SPE’s, etc.
• Foreign loans or other foreign exposures
• Interest rate contracts (i.e. swaps, caps, floors) or other derivatives to manage interest rate risk
• Trust preferred or other exotic capital structures
• Securitization or gain on sale accounting
• “Pro forma” earnings
• Stock option overhang (less than 1/2%)
• Bank Owned Life Insurance (BOLI)
3.) Corporate Profile
At June 30, 2002
• Bank branches located in six states
Supermarket |
| 238 |
| Colorado |
| 14 |
Traditional |
| 140 |
| Illinois |
| 182 |
Total |
| 378 |
| Michigan |
| 54 |
|
|
|
| Minnesota |
| 90 |
|
|
|
| Wisconsin |
| 33 |
|
|
|
| Indiana |
| 5 |
4.) What Makes TCF Different
• Convenience
TCF offers convenient services (open seven days a week, 360+ days/year, traditional and supermarket branches, TCF EXPRESS TELLER® ATMs, TCF Express Cards, phone banking, Internet banking, etc.).
• Growing Customer Base
TCF has a large and fast growing customer base (1.3 million checking accounts, 1.3 million debit cards, etc.).
• Top-line Revenue Growth
TCF is expanding top-line revenue growth through de novo expansion (201 new branches since 1/1/98), starting new businesses (i.e. Small Business Banking and Discount Brokerage in 2001), and offering new products and services.
5.) What Makes TCF Different
• Power Assets® and Power Liabilities®
Power Assets® (consumer loans, commercial and commercial real estate loans, and leasing and equipment finance) and low-cost (checking, savings and money market accounts) Power Liabilities® are growing at double digit rates, contributing a significantly high percentage of TCF’s profits.
• Credit Quality
TCF is primarily a secured lender, emphasizing credit quality over asset growth.
• Stock Buy-Back
TCF has purchased 20.5 million shares since 1/1/98 at an average cost of $31.11 per share.
These purchases contributed to TCF’s diluted EPS growth of +86% over the past five years.
3
6.) Share Repurchase Program
(000s) |
| Shares purchased per quarter |
| |||||||||||||
|
| 1998 |
| 1999 |
| 2000 |
| 2001 |
| 2002 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
First Quarter |
| 1,127 |
| 1,738 |
| 2,396 |
| 1,562 |
| 479 |
| |||||
Second Quarter |
| 2,121 |
| 670 |
| 465 |
| 751 |
| 1,493 |
| |||||
Third Quarter |
| 2,370 |
| 600 |
| 105 |
| 1,297 |
|
|
| |||||
Fourth Quarter |
| 1,931 |
| 1,084 |
| 278 |
| 60 |
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
| 7,549 |
| 4,092 |
| 3,244 |
| 3,670 |
| 1,972 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Average price |
| $ | 27.94 |
| $ | 25.93 |
| $ | 22.76 |
| $ | 40.34 |
| $ | 50.53 |
|
|
|
|
| |
Since 1997: |
|
|
| |
Shares |
| 20.5 million |
| |
Average Cost |
| $31.11 per share |
| |
Investment |
| $638.5 million |
| |
Value @ 6/30/02 |
| $1,007.9 million |
| |
7.) Share Repurchase — IRR
|
|
|
| Average |
|
|
| Internal Rate |
| ||
As of 6/30/02: |
| Total Shares |
| Price/Share |
| Total |
| of Return* |
| ||
|
|
|
|
|
|
|
|
|
| ||
1998 |
| 7,549,300 |
| $ | 27.94 |
| $ | 210,939,667 |
| 15.1 | % |
1999 |
| 4,091,611 |
| 25.93 |
| 106,106,383 |
| 23.7 |
| ||
2000 |
| 3,243,800 |
| 22.76 |
| 73,824,275 |
| 43.4 |
| ||
2001 |
| 3,670,107 |
| 40.34 |
| 148,042,876 |
| 20.5 |
| ||
June 30, 2002 |
| 1,971,675 |
| 50.53 |
| 99,635,978 |
| (11.9 | ) | ||
Total |
| 20,526,493 |
| 31.11 |
| $ | 638,549,179 |
| 19.9 |
| |
* Price change plus dividend save less after-tax funding costs
8.) Tangible Equity : Total Assets
|
| 6/00 |
| 9/00 |
| 12/00 |
| 3/01 |
| 6/01 |
| 9/01 |
| 12/01 |
| 3/02 |
| 6/02 |
|
|
| (%) |
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Equity |
| 5.86 | % | 6.31 | % | 6.66 | % | 6.19 | % | 6.28 | % | 6.32 | % | 6.71 | % | 6.87 | % | 6.65 | % |
Internal Benchmark |
| 6.00 | % | 6.00 | % | 6.00 | % | 6.00 | % | 6.00 | % | 6.00 | % | 6.00 | % | 6.00 | % | 6.00 | % |
9.) Risk Based Capital
($ millions) |
| 6/01 |
| 9/01 |
| 12/01 |
| 3/02 |
| 6/02 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Actual |
| $ | 814 |
| $ | 795 |
| $ | 834 |
| $ | 847 |
| $ | 814 |
|
Minimum Requirement |
| $ | 587 |
| $ | 597 |
| $ | 593 |
| $ | 592 |
| $ | 601 |
|
Well Capitalized |
| $ | 734 |
| $ | 746 |
| $ | 741 |
| $ | 740 |
| $ | 752 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Tier 1 |
| 10.15 | % | 9.66 | % | 10.24 | % | 10.42 | % | 9.83 | % | |||||
Total |
| 11.10 | % | 10.65 | % | 11.26 | % | 11.44 | % | 10.83 | % | |||||
10.) Power Assets® & Power Liabilities®
11.) Power Assets®
($ millions) |
| June 30, 2002 |
| ||||||||||
|
| MN/CO |
| Lakeshore |
| Michigan |
| Consolidated |
| ||||
Commercial Real Estate |
| $ | 690 |
| $ | 452 |
| $ | 608 |
| $ | 1,750 |
|
Change* |
| 21 | % | 25 | % | 10 | % | 18 | % | ||||
Commercial Business |
| 203 |
| 87 |
| 138 |
| 428 |
| ||||
Change* |
| 5 | % | 23 | % | (10) | % | 2 | % | ||||
Consumer |
| 1,215 |
| 981 |
| 505 |
| 2,701 |
| ||||
Change* |
| 14 | % | 16 | % | 16 | % | 15 | % | ||||
Leasing and equipment finance |
| — |
| — |
| — |
| 1,001 |
| ||||
Change* |
| — | % | — | % | — | % | 8 | % | ||||
Total |
| $ | 2,108 |
| $ | 1,520 |
| $ | 1,251 |
| $ | 5,880 |
|
Change* |
| 15 | % | 19 | % | 9 | % | 13 | % | ||||
* Change from June 30, 2001
12.) Commercial Lending +14%*
|
| 12/98 |
| 12/99 |
| 12/00 |
| 12/01 |
| 6/02 |
| |||||
|
| ($ millions) |
| |||||||||||||
Commercial Real Estate |
| $ | 811.4 |
| $ | 1,073.5 |
| $ | 1,371.9 |
| $ | 1,622.5 |
| $ | 1,749.5 |
|
Commercial Business |
| $ | 289.1 |
| $ | 351.4 |
| $ | 410.4 |
| $ | 422.4 |
| $ | 428.2 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
| $ | 1,101 |
| $ | 1,425 |
| $ | 1,782 |
| $ | 2,045 |
| $ | 2,178 |
|
* Twelve-month growth rate
4
13.) Commercial Loans
At June 30, 2002
• Commercial real estate — $1,749 million
• 28% apartment loans
• 21% office building loans
• 8% hotel loans
• Commercial business — $428 million
• Yield 6.57%
• Over-30-day delinquency rate .03%
• 2002 net charge-offs .68% (annualized); 2001 net charge-offs .01%
• Approximately 98% of all commercial loans secured
• CRE location mix: 87% Midwest, 13% Other
14.) Consumer Home Equity Lending +16%*
Loan-to-value |
| 12/98 |
| 12/99 |
| 12/00 |
| 12/01 |
| 6/02 |
| |||||
|
| ($ millions) |
| |||||||||||||
80% or less |
| $ | 961.0 |
| $ | 932.7 |
| $ | 971.7 |
| $ | 1,178.8 |
| $ | 1,300.6 |
|
Over 80-90% |
| $ | 453.5 |
| $ | 570.6 |
| $ | 648.2 |
| $ | 802.1 |
| $ | 884.3 |
|
Over 90-100% |
| $ | 48.5 |
| $ | 398.9 |
| $ | 486.5 |
| $ | 396.3 |
| $ | 402.5 |
|
Over 100% |
| $ | 54.0 |
| $ | 56.5 |
| $ | 45.6 |
| $ | 66.6 |
| $ | 58.5 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
| $ | 1,517 |
| $ | 1,959 |
| $ | 2,152 |
| $ | 2,444 |
| $ | 2,646 |
|
* Twelve-month growth rate
15.) Consumer Home Equity Loans
At June 30, 2002
• Consumer home equity loans and lines of credit 58% variable rate (prime based) and 42% fixed rate
• 69% are closed-end loans, 31% lines of credit
• Yield 7.89%
• Over-30-day delinquency rate .60%
• 2002 net charge-offs ..17% (annualized); 2001 net charge-offs .17%
• Current average loan-to-value 71%
• Average FICO score 700
• Average debt-to-income 34%
16.) Leasing and Equipment Finance +8%*
|
| 12/98 |
| 12/99 |
| 12/00 |
| 12/01 |
| 6/02 |
| |||||
|
| ($ millions) |
| |||||||||||||
Leasing and Equipment Finance |
| $ | 399 |
| $ | 493 |
| $ | 856 |
| $ | 957 |
| $ | 1,001 |
|
* Twelve-month growth rate
17.) Leasing and Equipment Finance
At June 30, 2002
• Origination Segments
• Winthrop — value-add specialization in computer, telecommunications and point-of-sale equipment
• Middle Market — focusing on business essential equipment and specialty vehicles
• Wholesale — discounting or purchasing of lease receivables sourced by third party lessors
• Small Ticket — specializing in program development with vendors, manufacturers and franchisees
• Uninstalled backlog of $139.5 million; up $13.4 million from year-end
• Over-30-day delinquency rate 1.42%
• 2002 net charge-offs ..95% (annualized); 2001 net charge-offs 1.00%
5
18.) Leasing and Equipment Finance
Power Assets®
($ 000s) |
|
|
|
|
|
|
| |||
|
| 6/30/2002 |
| 12/31/2001 |
| Change |
| |||
Winthrop |
| $ | 288,872 |
| $ | 307,335 |
| $ | (18,463 | ) |
Wholesale |
| 193,633 |
| 204,792 |
| (11,159 | ) | |||
Middle market |
| 259,260 |
| 181,826 |
| 77,434 |
| |||
Small ticket |
| 115,289 |
| 100,691 |
| 14,598 |
| |||
Leveraged leases |
| 20,851 |
| 17,608 |
| 3,243 |
| |||
Subtotal |
| 877,905 |
| 812,252 |
| 65,653 |
| |||
Truck and trailer |
| 123,318 |
| 144,485 |
| (21,167 | ) | |||
Total |
| $ | 1,001,223 |
| $ | 956,737 |
| $ | 44,486 |
|
19.) Leasing and Equipment Finance
Summary of Operations
($ 000s) |
|
|
|
|
|
|
| |||
For the six months ended June 30: |
| 2002 |
| 2001 |
| Change |
| |||
Net interest income |
| $ | 20,723 |
| $ | 20,496 |
| $ | 227 |
|
Provision for credit losses |
| 5,112 |
| 5,402 |
| (290 | ) | |||
Non-interest income |
| 26,816 |
| 21,230 |
| 5,586 |
| |||
Amortization of goodwill |
| — |
| 214 |
| (214 | ) | |||
Non-interest expense |
| 19,690 |
| 19,173 |
| 517 |
| |||
Income tax expense |
| 8,327 |
| 6,400 |
| 1,927 |
| |||
Net Income |
| $ | 14,410 |
| $ | 10,537 |
| $ | 3,873 |
|
20.) Leasing and Equipment Finance
Credit Quality
Over 30-day delinquency as a percentage of portfolio at: |
| 6/30/2002 |
| 12/31/2001 |
|
Winthrop |
| .82 | % | .24 | % |
Wholesale |
| .34 |
| .28 |
|
Middle market |
| 1.74 |
| 2.14 |
|
Small ticket |
| .31 |
| 1.17 |
|
Leveraged leases |
| — |
| — |
|
Truck and trailer |
| 5.27 |
| 7.59 |
|
Total |
| 1.42 |
| 1.84 |
|
21.) Allowance for Loan & Lease Losses
|
| 12/99 |
| 12/00 |
| 12/01 |
| 6/02 |
| ||||
|
| ($ millions) |
| ||||||||||
Allowance for Loan & Lease Losses |
| $ | 55.8 |
| $ | 66.7 |
| $ | 75.0 |
| $ | 75.2 |
|
Net Charge-offs |
| $ | 26.4 |
| $ | 3.9 |
| $ | 12.5 |
| $ | 13.7 |
|
|
|
|
|
|
|
|
|
|
| ||||
As a% of Loans & Leases: |
|
|
|
|
|
|
|
|
| ||||
Allowance |
| .71 | % | .78 | % | .91 | % | .92 | % | ||||
NCOs |
| .35 | % | .05 | % | .15 | % | .34 | %* | ||||
* YTD
22.) Credit Quality
At June 30, 2002
• Net charge-offs to average loans and leases .34% (annualized); 3rd best* of the Top 50 banks in 2001; 2nd best* in 2000
• Non-performing assets to net loans and leases .84%
• Over-30-day delinquency rate .51%
Commercial |
| .03 | % |
Consumer |
| .61 | % |
Leasing & equipment finance |
| 1.42 | % |
Residential real estate |
| .48 | % |
* Source: Keefe, Bruyette & Woods, Inc.
23.) Delinquencies (over 30-day)*
|
| 12/99 |
| 12/00 |
| 12/01 |
| 3/02 |
| 6/02 |
| |||||
|
| ($ millions) |
| |||||||||||||
Delinquencies |
| $ | 33.1 |
| $ | 58.9 |
| $ | 46.8 |
| $ | 44.3 |
| $ | 41.6 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Delinquencies (percent) |
| .42 | % | .69 | % | .57 | % | .55 | % | .51 | % | |||||
* Excludes non-accrual loans and leases
24.) Non-Performing Assets
|
| 12/99 |
| 12/00 |
| 12/01 |
| 3/02 |
| 6/02 |
| |||||
|
| ($ millions) |
| |||||||||||||
Non-Accrual Loans and Leases |
| $ | 24.1 |
| $ | 35.2 |
| $ | 52.0 |
| $ | 49.7 |
| $ | 43.4 |
|
Real Estate Owned |
| $ | 10.9 |
| $ | 10.9 |
| $ | 14.6 |
| $ | 20.8 |
| $ | 24.2 |
|
Total |
| $ | 35.0 |
| $ | 46.1 |
| $ | 66.6 |
| $ | 70.5 |
| $ | 67.6 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Reserves/NAs |
| 232 | % | 189 | % | 144 | % | 152 | % | 173 | % | |||||
NPAs/Assets |
| .33 | % | .41 | % | .59 | % | .63 | % | .59 | % | |||||
6
25.) Net Charge-offs
|
| 1998 |
| 1999 |
| 2000 |
| 2001 |
| 2002 |
| |||||
|
| ($ millions) |
| |||||||||||||
First Quarter |
| $ | 6.1 |
| $ | 9.3 |
| $ | — |
| $ | 0.9 |
| $ | 8.7 |
|
Second Quarter |
| $ | 5.4 |
| $ | 6.8 |
| $ | 1.2 |
| $ | 3.9 |
| $ | 5.0 |
|
Third Quarter |
| $ | 5.7 |
| $ | 7.3 |
| $ | 0.7 |
| $ | 2.1 |
|
|
| |
Fourth Quarter |
| $ | 8.7 |
| $ | 3.0 |
| $ | 2.0 |
| $ | 5.6 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
| $ | 25.9 |
| $ | 26.4 |
| $ | 3.9 |
| $ | 12.5 |
| $ | 13.7 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
NCOs/Avg. Loans & Leases (annualized) |
| .36 | % | .35 | % | .05 | % | .15 | % | .34 | % | |||||
26.) Net Charge-offs by Business Line
|
| 2Q02 |
| 1Q02 |
| ||||||
($ 000s) |
| $ |
| %* |
| $ |
| %* |
| ||
Consumer |
| $ | 938 |
| .14 | % | $ | 915 |
| .15 | % |
Commercial real estate |
| 1,630 |
| .38 |
| 439 |
| .10 |
| ||
Commercial business |
| 195 |
| .18 |
| 4,996 |
| 4.63 |
| ||
Leasing and equipment finance |
|
|
|
|
|
|
|
|
| ||
Winthrop |
| 43 |
| .06 |
| 19 |
| .03 |
| ||
Wholesale |
| 671 |
| 1.39 |
| 291 |
| .59 |
| ||
Middle market |
| 298 |
| .50 |
| 147 |
| .30 |
| ||
Truck and trailer |
| 1,034 |
| 3.23 |
| 1,528 |
| 4.37 |
| ||
Small ticket |
| 183 |
| .69 |
| 393 |
| 1.56 |
| ||
Leveraged leases |
| — |
| — |
| — |
| — |
| ||
Total leasing and equipment finance |
| 2,229 |
| .90 |
| 2,378 |
| .99 |
| ||
Subtotal |
| 4,992 |
| .35 |
| 8,728 |
| .62 |
| ||
Residential real estate |
| (4 | ) | — |
| (2 | ) | — |
| ||
Total |
| $ | 4,988 |
| .25 |
| $ | 8,726 |
| .43 |
|
* Annualized
27.) Retail Distribution Growth
|
| 12/97 |
| 12/98 |
| 12/99 |
| 12/00 |
| 12/01 |
| 6/02* |
|
|
| (#) |
| ||||||||||
Branches |
| 221 |
| 311 |
| 338 |
| 352 |
| 375 |
| 378 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branch Openings |
| 19 |
| 106 |
| 35 |
| 25 |
| 27 |
| 8 |
|
* Anticipate opening 18 more new branches during the remainder of 2002 and 24 new branches in 2003.
28.) De Novo Branch Expansion
|
| 1998 |
| 1999 |
| 2000 |
| 2001 |
| 2002 |
| 2003 |
|
|
| (# of new branches opened) |
| ||||||||||
Actual |
| 106 |
| 35 |
| 25 |
| 27 |
| 18 |
| — |
|
Planned |
| — |
| — |
| — |
| — |
| 8 |
| 24 |
|
Total |
| 106 |
| 35 |
| 25 |
| 27 |
| 26 |
| 24 |
|
TCF currently has branches under construction in each of its markets.
29.) De Novo Expansion
Branch Openings: |
| 2002 |
| 2003 |
|
Minnesota |
| 5 |
| 5 |
|
Illinois / Wisconsin |
| 12 |
| 6 |
|
Michigan |
| 5 |
| 6 |
|
Colorado |
| 4 |
| 7 |
|
Indiana |
| — |
| — |
|
Total |
| 26 |
| 24 |
|
30.) TCF Minnesota
• 503,200 DDA accounts, up 18,200 YTD
• 48 Traditional branches; 42 Supermarket branches
• Five new branches in both 2002 and 2003
• Second largest DDA market share
• Consolidated market, four banks with 70% of market
31.) TCF Lakeshore
• 589,200 DDA accounts, up 35,700 YTD
• 48 Traditional branches; 172 Supermarket branches
• Twelve new branches in 2002; two Supermarket and four Traditional in 2003
• Future emphasis on Traditional expansion in city and near city locations
• #2 share non-interest DDA and #3 share all DDA (Chicago)
• Small market share in large, highly fragmented market
7
32.) TCF Michigan
• 196,700 DDA accounts, up 9,000 YTD
• Domintates Ann Arbor market, small but rapidly growing Detroit metro share
• 42 Traditional branches; 12 Supermarket branches
• Five new Traditional branches in 2002; six new branches in 2003
• Results significantly exceeding De Novo Model
• Sold 22 branches since 1997
• Same major competitors as Lakeshore plus Comerica
• Small market share in large, moderately fragmented market
33.) TCF Colorado
• �� Five-year old de novo bank
• 24,800 DDA accounts, up 1,900 YTD
• Two Traditional branches; twelve Supermarket branches
• Four new Traditional branches in 2002; seven new branches in 2003
• Commercial Lending function to be added in 2003
• Highly fragmented market, rapidly growing market
34.) Power Liabilities®
($ millions) |
| June 30, 2002 |
| ||||||
|
| MN/CO |
| Lakeshore |
| Michigan |
| Consolidated |
|
Core Deposits |
| $2,388 |
| $2,105 |
| $902 |
| $5,398 |
|
Change* |
| 19 | % | 34 | % | 21 | % | 25 | % |
Certificates |
| 866 |
| 818 |
| 475 |
| 2,159 |
|
Change* |
| (6 | )% | (20 | )% | (25 | )% | (16 | )% |
Total |
| $3,254 |
| $2,923 |
| $1,377 |
| $7,557 |
|
Change* |
| 11 | % | 13 | % | — | % | 9 | % |
|
|
|
|
|
|
|
|
|
|
Checking Accounts (# 000s) |
| 528 |
| 589 |
| 197 |
| 1,314 |
|
Change* |
| 5.9 | % | 12.9 | % | 11.8 | % | 9.8 | % |
* Change from June 30, 2001
35.) Retail Checking Deposits +19%*
|
| 12/98 |
| 12/99 |
| 12/00 |
| 12/01 |
| 6/02 |
| |||||
|
| ($ millions) |
| |||||||||||||
Supermarket Branches |
| $ | 272 |
| $ | 354 |
| $ | 475 |
| $ | 591 |
| $ | 686 |
|
Traditional Branches |
| $ | 1,340 |
| $ | 1,387 |
| $ | 1,535 |
| $ | 1,715 |
| $ | 1,854 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
| $ | 1,612 |
| $ | 1,741 |
| $ | 2,010 |
| $ | 2,306 |
| $ | 2,540 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Average Rate |
| .22 | % | .21 | % | .20 | % | .07 | % | .05 | % | |||||
* Twelve-month growth rate
36.) Retail Checking Accounts +10%*
|
| 12/98 |
| 12/99 |
| 12/00 |
| 12/01 |
| 6/02 |
|
|
| (000s) |
| ||||||||
Supermarket Branches |
| 260 |
| 351 |
| 428 |
| 511 |
| 551 |
|
Traditional Branches |
| 653 |
| 681 |
| 703 |
| 738 |
| 763 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
| 913 |
| 1,032 |
| 1,131 |
| 1,249 |
| 1,314 |
|
* Twelve-month growth rate
37.) Fee Revenue Per Retail Checking Account
|
| 1998 |
| 1999 |
| 2000 |
| 2001 |
| 6/02* |
| |||||
|
| ($) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Fee Revenue per Retail Checking Account |
| $ | 143 |
| $ | 168 |
| $ | 190 |
| $ | 209 |
| $ | 206 |
|
* Annualized
8
38.) Retail Savings & Money Market Deposits +31%*
|
| 1998 |
| 1999 |
| 2000 |
| 2001 |
| 6/02 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Money Market |
| $ | 672.1 |
| $ | 656.3 |
| $ | 794.2 |
| $ | 879.9 |
| $ | 836.3 |
|
Savings |
| $ | 1,106.0 |
| $ | 1,039.0 |
| $ | 964.3 |
| $ | 1,113.4 |
| $ | 1,611.9 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
| $ | 1,778 |
| $ | 1,695 |
| $ | 1,758 |
| $ | 1,993 |
| $ | 2,448 |
|
* Twelve-month growth rate
39.) Supermarket Branch Growth +7%(1)
|
| 12/97 |
| 12/98 |
| 12/99 |
| 12/00 |
| 12/01 |
| 6/02(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supermarket Branches |
| 63 |
| 160 |
| 195 |
| 213 |
| 234 |
| 238 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branch Openings |
| 15 |
| 99 |
| 34 |
| 22 |
| 21 |
| 7 |
|
(1) Twelve-month growth rate
(2) Anticipate opening 7 more new supermarket branches during the remainder of 2002.
40.) Supermarket Deposit Growth +30%*
|
| 12/98 |
| 12/99 |
| 12/00 |
| 12/01 |
| 6/02 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Deposits |
| $ | 618 |
| $ | 826 |
| $ | 1,074 |
| $ | 1,213 |
| $ | 1,487 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Average Rate |
| 2.16 | % | 2.24 | % | 2.73 | % | 1.23 | % | 1.22 | % | |||||
* Twelve-month growth rate
41.) Supermarket Checking Accounts +16%*
|
| 12/98 |
| 12/99 |
| 12/00 |
| 12/01 |
| 6/02 |
|
|
| (000s) |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Checking Accounts |
| 260 |
| 351 |
| 428 |
| 511 |
| 551 |
|
* Twelve-month growth rate
42.) Supermarket Fee Income Growth +15%*
|
| 1998 |
| 1999 |
| 2000 |
| 2001 |
| 2002 |
| ||||||
|
| ($ millions) |
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||
First Quarter |
| $ | 8.8 |
| $ | 17.4 |
| $ | 23.3 |
| $ | 29.6 |
| $ | 33.3 |
| |
Second Quarter |
| $ | 13.2 |
| $ | 21.6 |
| $ | 28.5 |
| $ | 35.1 |
| $ | 41.3 |
| |
Third Quarter |
| $ | 14.7 |
| $ | 23.1 |
| $ | 30.0 |
| $ | 35.3 |
|
|
| ||
Fourth Quarter |
| $ | 16.8 |
| $ | 24.6 |
| $ | 30.2 |
| $ | 36.7 |
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total |
| $ | 53 |
| $ | 87 |
| $ | 112 |
| $ | 137 |
| $ | 75 |
| |
* YTD growth rate (‘02 vs. ‘01)
43.) Supermarket Consumer Loans +29%*
|
| 12/98 |
| 12/99 |
| 12/00 |
| 12/01 |
| 6/02 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Consumer Loans |
| $ | 108 |
| $ | 193 |
| $ | 233 |
| $ | 305 |
| $ | 341 |
|
* Twelve-month growth rate
44.) 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 |
|
Capital Expenditure: $250,000 Supermarket branch, $2.4 million Traditional branch
* Includes consumer lending
9
45.) TCF Express Card Revenue +24%*
|
| 1998 |
| 1999 |
| 2000 |
| 2001 |
| 2002 |
| ||||||
|
| ($ millions) |
| ||||||||||||||
First Quarter |
| $ | 1.9 |
| $ | 3.5 |
| $ | 6.0 |
| $ | 8.0 |
| $ | 10.1 |
| |
Second Quarter |
| $ | 2.7 |
| $ | 4.8 |
| $ | 7.1 |
| $ | 9.3 |
| $ | 11.4 |
| |
Third Quarter |
| $ | 3.0 |
| $ | 5.3 |
| $ | 7.5 |
| $ | 10.1 |
|
|
| ||
Fourth Quarter |
| $ | 3.5 |
| $ | 5.9 |
| $ | 8.1 |
| $ | 10.0 |
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total |
| $ | 11.1 |
| $ | 19.5 |
| $ | 28.7 |
| $ | 37.4 |
| $ | 21.5 |
| |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Cards (000s) |
| 774 |
| 929 |
| 1,057 |
| 1,196 |
| 1,334 |
| ||||||
* YTD growth rate (‘02 vs. ‘01)
46.) TCF Express Card
• 11th largest U.S. Visa debit card issuer(1)
• 6.8 million average transactions per month in 2Q02
• 26.1% increase in the number of customer purchases(2)
• 15.8% increase in the number of TCF Express Cards(2)
• Interchange revenue of $11.4 million in 2Q02, an increase of 24%(2)
• Percentage of active Express Card users increased to 53.3% in 2Q02, up from 51.3% in 2Q01
• Average number of transactions per month increased to 11.8 in 2Q02, up from 11.0 in 2Q01
• 18 million phone minutes awarded for TCF Express Card usage in 2Q02; 67 million minutes awarded in 2001; 38.6 million minutes awarded in 2000
(1) Source: Visa, at March 31, 2002; ranked by sales volume
(2) 2Q02 vs. 2Q01
47.) Small Business Checking Deposits +50%(1)
|
| 12/98(2) |
| 12/99 |
| 12/00 |
| 12/01 |
| 6/02 |
| |||||
|
| (000s) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Small Business Checking Deposits |
| $ | 128 |
| $ | 196 |
| $ | 255 |
| $ | 337 |
| $ | 375 |
|
(1) Twelve-month growth rate
(2) Free Small Business Checking
48.) Small Business Checking Accounts
At June 30, 2002
• Relationship banking offering multiple product lines to business owners
• $375 million in 0% interest checking account deposits
• 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
• 33,200 activated small business Express Cards
49.) Internet Banking Accounts +327%*
|
| 12/00 |
| 12/01 |
| 6/02 |
|
|
| (000s) |
| ||||
|
|
|
|
|
|
|
|
Internet Banking Accounts |
| 30 |
| 143 |
| 198 |
|
* Twelve-month growth rate
10
50.) Campus Banking
At June 30, 2002
• Alliances formed with:
• University of Minnesota
• University of Michigan
• St. Cloud State University in MN
• Northern Illinois University — Dekalb
• Saginaw Valley State University in MI
• 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.
• 67,200 total checking accounts
• $77.2 million in deposits
51.) Diluted EPS Growth +19%*
|
| 1998 |
| 1999 |
| 2000 |
| 2001 |
| 2002 |
| |||||
|
| ($) |
| |||||||||||||
First Quarter |
| $ | 0.43 |
| $ | 0.44 |
| $ | 0.51 |
| $ | 0.62 |
| $ | 0.75 |
|
Second Quarter |
| $ | 0.45 |
| $ | 0.49 |
| $ | 0.59 |
| $ | 0.67 |
| $ | 0.78 |
|
Third Quarter |
| $ | 0.42 |
| $ | 0.52 |
| $ | 0.59 |
| $ | 0.69 |
|
|
| |
Fourth Quarter |
| $ | 0.46 |
| $ | 0.55 |
| $ | 0.66 |
| $ | 0.72 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
| $ | 1.76 |
| $ | 2.00 |
| $ | 2.35 |
| $ | 2.70 |
| $ | 1.53 |
|
* YTD growth rate (‘02 vs. ‘01)
52.) Net Income +14%*
|
| 1998 |
| 1999 |
| 2000 |
| 2001 |
| 2002 |
| |||||||
|
| ($ millions) |
| |||||||||||||||
First Quarter |
| $ | 39.9 |
| $ | 37.3 |
| $ | 40.7 |
| $ | 48.2 |
| $ | 56.3 |
| ||
Second Quarter |
| $ | 40.2 |
| $ | 41.0 |
| $ | 46.7 |
| $ | 52.0 |
| $ | 58.0 |
| ||
Third Quarter |
| $ | 36.6 |
| $ | 42.8 |
| $ | 46.7 |
| $ | 52.9 |
|
|
| |||
Fourth Quarter |
| $ | 39.5 |
| $ | 45.0 |
| $ | 52.2 |
| $ | 54.2 |
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total |
| $ | 156 |
| $ | 166 |
| $ | 186 |
| $ | 207 |
| $ | 114 |
| ||
* YTD growth rate (‘02 vs. ‘01)
53.) Dividends Paid +15%(1)
|
| 1998 |
| 1999 |
| 2000 |
| 2001 |
| 2002(2) |
| |||||
|
| (000s) |
| |||||||||||||
Small Business Checking Deposits |
| $ | .6125 |
| $ | .725 |
| $ | .825 |
| $ | 1.00 |
| $ | 1.15 |
|
(1) YTD growth rate (‘02 vs. ‘01)
(2) Subject to Board of Directors approval
54.) Net Interest Income +7%*
|
| 1998 |
| 1999 |
| 2000 |
| 2001 |
| 2002 |
| ||||||
|
| ($ millions) |
| ||||||||||||||
First Quarter |
| $ | 109.2 |
| $ | 104.8 |
| $ | 106.8 |
| $ | 113.8 |
| $ | 124.5 |
| |
Second Quarter |
| $ | 107.3 |
| $ | 106.7 |
| $ | 110.2 |
| $ | 119.3 |
| $ | 124.3 |
| |
Third Quarter |
| $ | 104.6 |
| $ | 106.6 |
| $ | 110.7 |
| $ | 122.4 |
|
|
| ||
Fourth Quarter |
| $ | 104.7 |
| $ | 106.1 |
| $ | 110.8 |
| $ | 125.7 |
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total |
| $ | 426 |
| $ | 424 |
| $ | 439 |
| $ | 481 |
| $ | 249 |
| |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net Interest Margin |
| 4.84 | % | 4.47 | % | 4.35 | % | 4.51 | % | 4.80 | % | ||||||
* YTD growth rate (‘02 vs. ‘01)
55.) Fees and Other Revenue +12%*
|
| 1998 |
| 1999 |
| 2000 |
| 2001 |
| 2002 |
| |||||
|
| ($ millions) |
| |||||||||||||
First Quarter |
| $ | 51.7 |
| $ | 62.4 |
| $ | 71.7 |
| $ | 80.7 |
| $ | 94.9 |
|
Second Quarter |
| $ | 56.9 |
| $ | 67.2 |
| $ | 81.3 |
| $ | 95.7 |
| $ | 101.8 |
|
Third Quarter |
| $ | 64.3 |
| $ | 71.1 |
| $ | 84.1 |
| $ | 95.3 |
|
|
| |
Fourth Quarter |
| $ | 62.7 |
| $ | 73.7 |
| $ | 86.3 |
| $ | 95.6 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
| $ | 236 |
| $ | 274 |
| $ | 323 |
| $ | 367 |
| $ | 197 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
3.48% of Average Assets |
|
|
|
|
|
|
|
|
|
|
| |||||
44% of Total Revenues |
|
|
|
|
|
|
|
|
|
|
| |||||
* YTD growth rate (‘02 vs. ‘01)
11
56.) New Businesses
• Discount Brokerage
• De novo, launched June 2001
• Cross selling and account growth opportunities
• Expanded fee income generation
• TCF Express Coin ServiceSM coin counters
• TCF Command Protection Plan
• Monthly payments
• Another source of fee revenue
• Insurance Products
• “Future Generations” life insurance product
• Putnam CollegeAdvantage Plan
57.) How We Are Doing
Financial
Highlights
58.) Interest Rate Risk Management
Cumulative One Year Gap
|
| 12/00 |
| 12/01 |
| 6/02 |
| |||
|
| ($ millions) |
| |||||||
Adjusted Gap |
| $ | (215 | ) | $ | 242 |
| $ | 873 |
|
|
|
|
|
|
|
|
| |||
Adjusted Gap % |
| (1.9) | % | 2.1 | % | 7.6 | % | |||
59.) Variable-Rate Assets and Liabilities(1)
($ millions) |
|
|
|
|
|
|
| |||||
|
|
|
|
|
| Change |
| |||||
|
| 6/30/2002 |
| 12/31/2001 |
| Increase/(Decrease) |
| |||||
ASSETS |
|
|
|
|
|
|
|
|
| |||
Commercial Loans |
| $ | 834 |
| $ | 747 |
| $ | 87 |
| 12 | % |
Consumer Loans(2) |
| 821 |
| 315 |
| 506 |
| 161 | % | |||
Total Assets |
| $ | 1,655 |
| $ | 1,062 |
| $ | 593 |
| 56 | % |
|
|
|
|
|
|
|
|
|
| |||
LIABILITIES |
|
|
|
|
|
|
|
|
| |||
Borrowings(3) |
| $ | 486 |
| $ | 720 |
| $ | (234 | ) | (33) | % |
Total Liabilities |
| $ | 486 |
| $ | 720 |
| $ | (234 | ) | (33) | % |
|
|
|
|
|
|
|
|
|
| |||
Net Asset/(Liability) Sensitivity(4) |
| $ | 1,169 |
| $ | 342 |
| $ | 827 |
| 242 | % |
(1) Includes only those assets and liabilities tied to a variable-rate index that would reprice within 30 days if the Federal Reserve changed interest rates.
(2) Total variable-rate consumer loans less loans at their floor rate. Loans at their floor rate totaled $745 million at 6/30/02 and $946 million at 12/31/01.
(3) Includes short-term and variable-rate borrowings.
(4) Does not reflect potential repricing of deposit rates set by management.
60.) MBS and Residential Portfolios
($ millions) |
|
|
| 6/01 |
| 9/01 |
| 12/01 |
| 3/02 |
| 6/02 |
| |||||
MBS Portfolio balance |
| $ | 1,841 |
| $ | 1,757 |
| $ | 1,574 |
| $ | 1,559 |
| $ | 1,929 |
| ||
Residential Portfolio balance |
| $ | 3,252 |
| $ | 3,123 |
| $ | 2,733 |
| $ | 2,458 |
| $ | 2,249 |
| ||
Total |
| $ | 5,093 |
| $ | 4,880 |
| $ | 4,307 |
| $ | 4,017 |
| $ | 4,178 |
| ||
61.) Financial Highlights
($ millions, except per-share data) |
| Second Quarter |
|
|
| ||||
|
| 2002 |
| 2001* |
| Change |
| ||
Net Interest Income |
| $ | 124.3 |
| $ | 119.3 |
| 4 | % |
Fees & Other Revenues |
| 101.8 |
| $ | 95.6 |
| 6 | % | |
Top-Line Revenue |
| 226.1 |
| $ | 214.9 |
| 5 | % | |
|
|
|
|
|
|
|
| ||
Provision |
| 4.7 |
| 5.4 |
| (13) | % | ||
Non-Interest Expenses |
| 131.9 |
| 126.0 |
| 5 | % | ||
Net Income |
| $ | 58.0 |
| $ | 52.0 |
| 11 | % |
Diluted EPS |
| $ | .78 |
| $ | .67 |
| 16 | % |
ROA |
| 2.04 | % | 1.78 | % | 26 bps |
| ||
RORE |
| 25.75 | % | 23.22 | % | 253 bps |
| ||
* In 2002, new accounting rules under generally accepted accounting principles (GAAP) eliminated the amortization of goodwill. Goodwill amortization reduced net income in the second quarter of 2001 by $1.9 million or 3 cents per common share.
12
62.) Power Profits
|
|
|
| YTD |
|
|
| ||
Average Balance ($ millions) |
|
|
| 2002 |
|
|
| ||
|
| Balance |
| Income* |
| % Profit |
| ||
Commercial Lending |
| $ | 2,144 |
| $ | 7,013 |
| 6 | % |
Consumer Lending |
| 2,768 |
| 20,986 |
| 18 | % | ||
Leasing and Equipment Finance |
| 974 |
| 14,410 |
| 13 | % | ||
Mortgage Banking |
| 211 |
| 2,893 |
| 3 | % | ||
Total Power Assets® |
| $ | 6,097 |
| 45,302 |
| 40 | % | |
|
|
|
|
|
|
|
| ||
Traditional Branches (140) |
| $ | 5,870 |
| 36,627 |
| 32 | % | |
Supermarket Branches (238) |
| 1,341 |
| 10,447 |
| 9 | % | ||
Total Power Liabilities® |
| $ | 7,211 |
| 47,074 |
| 41 | % | |
Total Power Assets & Liabilities |
|
|
| 92,376 |
| 81 | % | ||
|
|
|
|
|
|
|
| ||
Equity |
|
|
| 15,572 |
| 13 | % | ||
Total Power Businesses |
|
|
| 107,948 |
| 94 | % | ||
|
|
|
|
|
|
|
| ||
Treasury & Other |
|
|
| 6,340 |
| 6 | % | ||
Total Net Income |
|
|
| $ | 114,288 |
| 100 | % | |
* Profit center net income ($ in 000s)
63.) TCF vs. Top 50 Banks*
Quarter-ended March 31, 2002
|
|
|
| Top 50 |
|
|
|
|
| Banks |
|
|
| TCF |
| Average |
|
ROA |
| 2.01 | % | 1.32 | % |
|
|
|
| Top 50 |
|
|
|
|
| Banks |
|
|
| TCF |
| Average |
|
RORE |
| 24.86 | % | 15.55 | % |
* Represents the fifty largest bank holding companies in the U.S. based on asset size at 3/31/02
Source: Thomson Financial/Carson
64.) TCF vs. Top 50 Banks*
Quarter-ended March 31, 2002
|
|
|
| Top 50 |
|
|
|
|
| Banks |
|
|
| TCF |
| Average |
|
Revenue Growth |
| 13 | % | (5) | % |
|
|
|
| Top 50 |
|
|
|
|
| Banks |
|
|
| TCF |
| Average |
|
Net Charge-Offs |
| 43bps |
| 65bps |
|
* Represents the fifty largest bank holding companies in the U.S. based on asset size at 3/31/02
Source: Thomson Financial/Carson and Keefe, Bruyette & Woods, Inc.
65.) TCF vs. Top 50 Banks*
March 31, 2002
|
|
|
| Top 50 |
|
|
|
|
|
|
|
|
| TCF |
| Banks |
|
Net Interest Margin |
| 4.83 | % | 4.09 | % |
|
|
|
| Top 50 |
|
|
|
|
| Banks |
|
|
| TCF |
| Average |
|
Price/Estimated EPS |
| 16.74x |
| 15.07x |
|
* Represents the fifty largest bank holding companies in the U.S. based on asset size at 3/31/02
Source: Thomson Financial/Carson, IBES
66.) Return to Shareholders(1) +27%(2)
|
| 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 |
| 6/30/2002 |
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
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 |
| $ | 1,298.06 |
|
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 |
| $ | 292.81 |
|
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 |
| $ | 626.45 |
|
(1) Assumes $100 invested December 31, 1991 with dividends reinvested
(2) Annualized return since 12/31/91
Source: SNL Securities LC
13
67.) Market Returns*
June 30, 2002
|
| Annualized |
| ||||||
|
| 1 Year |
| 3 Years |
| 5 Years |
| 10 Years |
|
TCF Stock |
| 8.43 | % | 23.95 | % | 17.60 | % | 25.18 | % |
S&P Bank Composite |
| 1.48 | % | (1.67) | % | 4.42 | % | 12.72 | % |
S&P MidCap Index |
| (4.72) | % | 6.66 | % | 12.57 | % | 15.06 | % |
Dow Jones Industrial Average |
| (10.33) | % | (3.94) | % | 5.54 | % | 13.13 | % |
S&P 500 Index |
| (17.99) | % | (9.18) | % | 3.66 | % | 11.43 | % |
* Assumes dividend reinvestment
Source: Sit Investment Associates
68.) Cautionary Statement
This investor presentation contains “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 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; adverse developments affecting TCF’s supermarket banking relationships or any of the supermarket chains in which TCF maintains supermarket branches; 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 and related subsequent developments, have had an adverse impact on the United States’ economy and could have a continuing adverse impact on the economy and the Company’s business, most likely by reducing capital and consumer spending. Such developments could result in decreased demand for TCF’s products and services, and increased credit losses. Several recent high-profile instances of financial reporting irregularities, unrelated to the Company, have given rise to concerns about the accounting practices of public companies, and resulted in demands for additional regulatory requirements and improved controls over accounting practices. Adverse public reaction to such developments, including a loss of investor confidence and stock market declines, may contribute to economic malaise with a negative impact on the Company’s business. Also additional regulatory and financial reporting requirements may impose added costs or other burdens on the Company. The investor presentation provides data as of the end of the second quarter 2002 (June 30, 2002). 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.
69.)
NYSE: TCB
The Leader In Convenience Banking
Stock Price Performance
(In Dollars)
Year-Ending |
| Stock Price |
| Dividends Paid |
| ||
Dec-91 |
| $ | 4.84 |
| $ | .10 |
|
Dec-92 |
| $ | 7.25 |
| $ | .12 |
|
Dec-93 |
| $ | 8.50 |
| $ | .17 |
|
Dec-94 |
| $ | 10.31 |
| $ | .25 |
|
Dec-95 |
| $ | 16.56 |
| $ | .30 |
|
Dec-96 |
| $ | 21.75 |
| $ | .36 |
|
Dec-97 |
| $ | 33.94 |
| $ | .47 |
|
Dec-98 |
| $ | 24.19 |
| $ | .61 |
|
Dec-99 |
| $ | 24.88 |
| $ | .73 |
|
Dec-00 |
| $ | 44.56 |
| $ | .83 |
|
Dec-01 |
| $ | 47.98 |
| $ | 1.00 |
|
Jun-02 |
| $ | 49.10 |
| $ | 1.15 | (annualized) |
14
Glossary of Financial Terms
Earnings per Share
Net Income available to common shareholders divided by weighted average common and common equivalent shares outstanding during the period (diluted EPS).
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 the period.
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).
Stock Option Overhang
Amount of incentive stock options divided by total shares outstanding.
Tangible Equity
Total stockholders’ equity less goodwill and deposit based intangibles.
Top-Line Revenue
Net interest income plus Fees and Other Revenues.
15
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: August 23, 2002
| TCF FINANCIAL CORPORATION | |
|
|
|
| BY | /s/ WILLIAM A. COOPER |
|
| William A. Cooper |
|
| Chairman of the Board, |
|
| Chief Executive Officer and Director |
|
|
|
|
| /s/ NEIL W. BROWN |
|
| Neil W. Brown |
|
| Executive Vice President, |
|
| Chief Financial Officer and Treasurer |
|
|
|
|
|
|
|
| /s/ DAVID M. STAUTZ |
|
| David M. Stautz |
|
| Senior Vice President, |
|
| Controller and Assistant Treasurer |
16
