Exhibit 99.1
TCF Financial Corporation
2004 TCF Analyst Day
1) General Strategic Overview & Business Update
William A. Cooper
Chairman & CEO
Lynn A. Nagorske
President & COO
2) Corporate Profile
At June 30, 2004
• $11.9 billion financial holding company headquartered in Minnesota is the 51st largest1 bank in the U.S. based on asset size and 40th largest1 based on market cap ($4.1 billion)
• 411 bank branches, 237 branches opened since January 1, 1998 - 27th largest2 branch network in the country. Fourth largest2 bank branch growth (1999 to 2003)
• 1,121 TCF EXPRESS TELLER® ATMs, 652 off-site
• 1.5 million checking accounts
• One of the largest Visa® Classic debit card issuers
• Annualized return to investors3: 1 year 49.7%, 3 years 10.7%, 5 years 18.9%, 10 years 24.2%
1 Source: Citigate Financial Intelligence
2 Source: American Banker; January 15, 2004
3 Source: SIT Investment Associates, Inc.
3) Corporate Profile
At June 30, 2004
• Bank branches located in six states: Minnesota, Illinois, Michigan, Wisconsin, Colorado and Indiana.
|
| At 6/30/04 |
| At 1/1/98 |
|
Traditional |
| 170 |
| 156 |
|
Supermarket |
| 241 |
| 61 |
|
Total |
| 411 |
| 217 |
|
|
|
|
|
|
|
Minnesota |
| 100 |
| 75 |
|
Illinois |
| 192 |
| 47 |
|
Michigan |
| 57 |
| 60 |
|
Wisconsin |
| 34 |
| 28 |
|
Colorado |
| 22 |
| 7 |
|
Indiana |
| 6 |
| — |
|
Total |
| 411 |
| 217 |
|
4) 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 and supermarket branches, TCF EXPRESS TELLER® ATMs, debit cards, phone banking, TCF Totally Free OnlineSM banking (675,000 Internet banking accounts), etc.]
• De Novo Expansion
TCF is increasing its market share through de novo expansion:
• Opening new branches
• Starting new businesses
• 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 Power Liabilities® (checking, savings and money market accounts) are growing and contribute 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 25.9 million shares since 1/1/98 at an average cost of $33.94 per share.
6) Key Statistics
As of June 30, 2004
|
| YTD 2004 |
| Prior Year Change |
| ||||
Net income (millions) |
| $ | 125.9 |
| $ | 5.5 |
| 4.5 | % |
Diluted EPS |
| $ | 1.82 |
| $ | .14 |
| 8.3 | % |
ROA |
| 2.15 | % |
|
| 13 | bps | ||
ROE |
| 26.82 | % |
|
| 187 | bps | ||
|
|
|
|
|
|
|
| ||
Stock price-close |
| $ | 58.05 |
| $ | 18.21 |
| 45.7 | % |
Market cap (billions) |
| $ | 4.1 |
| $ | 1.2 |
| 42.0 | % |
P/E (trailing four quarters) |
| 18.20 | X |
|
|
|
| ||
Price to book value |
| 4.3 | X |
|
|
|
| ||
bps - basis points
7) TCF vs. Top 50 Banks* - Return on Assets
Quarter Ended June 30, 2004
TCF FINANCIAL CORP |
| TCB |
| 2.20% |
U S BANCORP |
| USB |
| 2.19% |
MELLON FINANCIAL CORP |
| MEL |
| 2.13% |
FIFTH THIRD BANCORP |
| FITB |
| 1.91% |
SYNOVUS FINANCIAL CP |
| SNV |
| 1.86% |
NATIONAL CITY CORP |
| NCC |
| 1.80% |
NORTH FORK BANCORPORATION |
| NFB |
| 1.78% |
FIRST HORIZON NATIONAL CORP |
| FHN |
| 1.75% |
MARSHALL & ILSLEY CORP |
| MI |
| 1.69% |
WELLS FARGO & CO |
| WFC |
| 1.68% |
ASSOCIATED BANC CORP |
| ASBC |
| 1.67% |
PNC FINANCIAL SVCS GROUP INC |
| PNC |
| 1.66% |
MERCANTILE BANKSHARES CORP |
| MRBK |
| 1.62% |
CITY NATIONAL CORP |
| CYN |
| 1.59% |
CHARTER ONE FINANCIAL INC |
| CF |
| 1.56% |
BB&T CORP |
| BBT |
| 1.55% |
NATIONAL COMMERCE FINANCIAL |
| NCF |
| 1.50% |
BANK OF NEW YORK CO INC |
| BK |
| 1.49% |
COMERICA INC. |
| CMA |
| 1.49% |
SOUTHTRUST CORP |
| SOTR |
| 1.49% |
BANK ONE CORP |
| ONE |
| 1.47% |
UNIONBANCAL CORP |
| UB |
| 1.46% |
HIBERNIA CORP -CL A |
| HIB |
| 1.46% |
M & T BANK CORP |
| MTB |
| 1.45% |
COMMERCE BANCSHARES INC |
| CBSH |
| 1.45% |
AMSOUTH BANCORPORATION |
| ASO |
| 1.41% |
HUNTINGTON BANCSHARES |
| HBAN |
| 1.36% |
BANKNORTH GROUP INC |
| BNK |
| 1.36% |
REGIONS FINL CORP |
| RF |
| 1.35% |
BANK OF AMERICA CORP |
| BAC |
| 1.34% |
POPULAR INC |
| BPOP |
| 1.33% |
COMPASS BANCSHARES INC |
| CBSS |
| 1.33% |
SKY FINANCIAL GR |
| SKYF |
| 1.33% |
BOK FINANCIAL CORP |
| BOKF |
| 1.32% |
NORTHERN TRUST CORP |
| NTRS |
| 1.28% |
HUDSON CITY BANCORP |
| HCBK |
| 1.28% |
WACHOVIA CORP |
| WB |
| 1.27% |
CITIGROUP INC |
| C |
| 1.22% |
SOVEREIGN BANCORP INC |
| SOV |
| 1.22% |
ZIONS BANCORPORATION |
| ZION |
| 1.21% |
WESTCORP |
| WES |
| 1.16% |
SUNTRUST BANKS INC |
| STI |
| 1.15% |
KEYCORP |
| KEY |
| 1.13% |
WEBSTER FINANCIAL CORP |
| WBS |
| 1.12% |
COMMERCE BANCORP INC/NJ |
| CBH |
| 1.03% |
COLONIAL BANCGROUP |
| CNB |
| 1.01% |
STATE STREET CORP |
| STT |
| 0.98% |
NEW YORK CMNTY BANCORP INC |
| NYB |
| 0.61% |
FIRST CITIZENS |
| FCNCA |
| 0.53% |
J P MORGAN CHASE & CO |
| JPM |
| 0.35% |
UNION PLANTERS CORP |
| UPC |
| 0.15% |
|
|
|
|
|
AVERAGE |
|
|
| 1.39% |
* Represents the fifty largest bank holding companies in the U.S. based on asset size at 6/30/04
Source: Citigate Financial Intelligence
8) TCF vs. Top 50 Banks* - Return on Equity
Quarter Ended June 30, 2004
TCF FINANCIAL CORP |
| TCB |
| 27.68% |
FIRST HORIZON NATIONAL CORP |
| FHN |
| 25.50% |
NORTH FORK BANCORPORATION |
| NFB |
| 22.92% |
U S BANCORP |
| USB |
| 21.90% |
FIFTH THIRD BANCORP |
| FITB |
| 21.00% |
CHARTER ONE FINANCIAL INC |
| CF |
| 20.50% |
AMSOUTH BANCORPORATION |
| ASO |
| 20.31% |
COMMERCE BANCORP INC/NJ |
| CBH |
| 19.86% |
WELLS FARGO & CO |
| WFC |
| 19.60% |
COMPASS BANCSHARES INC |
| CBSS |
| 19.17% |
MELLON FINANCIAL CORP |
| MEL |
| 18.90% |
ASSOCIATED BANC CORP |
| ASBC |
| 18.87% |
POPULAR INC |
| BPOP |
| 18.79% |
BANK ONE CORP |
| ONE |
| 18.70% |
BANK OF AMERICA CORP |
| BAC |
| 18.53% |
HUNTINGTON BANCSHARES |
| HBAN |
| 18.40% |
MERCANTILE BANKSHARES CORP |
| MRBK |
| 18.14% |
MARSHALL & ILSLEY CORP |
| MI |
| 17.92% |
SOUTHTRUST CORP |
| SOTR |
| 17.75% |
SYNOVUS FINANCIAL CP |
| SNV |
| 17.60% |
PNC FINANCIAL SVCS GROUP INC |
| PNC |
| 17.41% |
WESTCORP |
| WES |
| 17.36% |
BANK OF NEW YORK CO INC |
| BK |
| 17.14% |
CITY NATIONAL CORP |
| CYN |
| 17.07% |
HUDSON CITY BANCORP |
| HCBK |
| 16.98% |
NORTHERN TRUST CORP |
| NTRS |
| 16.91% |
CITIGROUP INC |
| C |
| 16.69% |
HIBERNIA CORP -CL A |
| HIB |
| 16.11% |
STATE STREET CORP |
| STT |
| 15.70% |
WACHOVIA CORP |
| WB |
| 15.49% |
SOVEREIGN BANCORP INC |
| SOV |
| 15.36% |
COMERICA INC. |
| CMA |
| 15.35% |
SKY FINANCIAL GR |
| SKYF |
| 15.25% |
REGIONS FINL CORP |
| RF |
| 15.04% |
J P MORGAN CHASE & CO |
| JPM |
| 15.00% |
UNIONBANCAL CORP |
| UB |
| 14.81% |
SUNTRUST BANKS INC |
| STI |
| 14.39% |
BOK FINANCIAL CORP |
| BOKF |
| 14.36% |
COMMERCE BANCSHARES INC |
| CBSH |
| 14.09% |
BB&T CORP |
| BBT |
| 14.07% |
COLONIAL BANCGROUP |
| CNB |
| 14.04% |
KEYCORP |
| KEY |
| 13.97% |
ZIONS BANCORPORATION |
| ZION |
| 13.93% |
BANKNORTH GROUP INC |
| BNK |
| 13.54% |
NATIONAL CITY CORP |
| NCC |
| 13.41% |
WEBSTER FINANCIAL CORP |
| WBS |
| 13.40% |
M & T BANK CORP |
| MTB |
| 13.12% |
NATIONAL COMMERCE FINANCIAL |
| NCF |
| 12.77% |
FIRST CITIZENS |
| FCNCA |
| 6.42% |
NEW YORK CMNTY BANCORP INC |
| NYB |
| 5.48% |
UNION PLANTERS CORP |
| UPC |
| 1.57% |
|
|
|
|
|
AVERAGE |
|
|
| 16.44% |
* Represents the fifty largest bank holding companies in the U.S. based on asset size at 6/30/04
Source: Citigate Financial Intelligence
9) Total Market Returns*
At June 30, 2004
|
| Annualized |
| ||||||
|
| 1 Year |
| 3 Years |
| 5 Years |
| 10 Years |
|
TCF Stock |
| 49.71 | % | 10.67 | % | 18.91 | % | 24.19 | % |
S&P MidCap Index |
| 27.98 | % | 6.58 | % | 9.05 | % | 15.47 | % |
Dow Jones Industrial Average |
| 18.54 | % | 1.83 | % | .86 | % | 13.32 | % |
S&P Bank Composite |
| 15.44 | % | 4.33 | % | 1.25 | % | 11.96 | % |
S&P 500 Index |
| 19.11 | % | (.70 | )% | (2.20 | )% | 11.83 | % |
Bank One Corp |
| 39.99 | % | 14.98 | % | (.28 | )% | 9.45 | % |
Fifth Third Bancorp |
| (4.28 | )% | (1.84 | )% | 5.66 | % | 19.95 | % |
US Bancorp |
| 18.00 | % | 10.90 | % | 3.28 | % | 24.22 | % |
Wells Fargo & Company |
| 17.34 | % | 10.06 | % | 8.56 | % | 18.77 | % |
* Assumes dividend reinvestment
Source: SIT Investment Associates, Inc.
10) Consumer Home Equity Lending +22%*
Loan-to-value
|
| 12/00 |
| 12/01 |
| 12/02 |
| 12/03 |
| 6/04 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
80% or less |
| $ | 971.7 |
| $ | 1,178.8 |
| $ | 1,488.5 |
| $ | 1,816.7 |
| $ | 1,989.3 |
|
Over 80 to 90% |
| $ | 648.2 |
| $ | 802.1 |
| $ | 1,028.2 |
| $ | 1,370.5 |
| $ | 1,568.8 |
|
Over 90 to 100% |
| $ | 486.5 |
| $ | 396.3 |
| $ | 385.0 |
| $ | 361.4 |
| $ | 392.6 |
|
Over 100% |
| $ | 45.6 |
| $ | 66.6 |
| $ | 53.9 |
| $ | 39.5 |
| $ | 34.7 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
| $ | 2,152 |
| $ | 2,444 |
| $ | 2,956 |
| $ | 3,588 |
| $ | 3,985 |
|
Portion of loans >90% of property value is $34.7 million
* Twelve-month growth rate
11) Consumer Home Equity Loans
At June 30, 2004
• 68% loans, 32% lines of credit
• 62% variable rate (prime based) and 38% fixed rate
• 67% are 1st mortgages, 33% are 2nd mortgages
• Average home value of $190,670
• Yield 5.99%
• Over-30-day delinquency rate ..36%
• Net charge-offs: 2004= .08%* , 2003= .11%
• Average loan-to-value 74%
• Average FICO score 714
* Annualized
12) Commercial Lending +5%*
|
| 12/00 |
| 12/01 |
| 12/02 |
| 12/03 |
| 6/04 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Commercial Real Estate |
| $ | 1,371.9 |
| $ | 1,622.5 |
| $ | 1,835.8 |
| $ | 1,916.7 |
| $ | 1,997.4 |
|
Commercial Business |
| $ | 410.4 |
| $ | 422.4 |
| $ | 440.1 |
| $ | 427.7 |
| $ | 445.3 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
| $ | 1,782 |
| $ | 2,045 |
| $ | 2,276 |
| $ | 2,344 |
| $ | 2,443 |
|
* Twelve-month growth rate
13) Commercial Loans
At June 30, 2004
• Commercial real estate
• 25% apartment loans
• 20% office building loans
• 6% hotel loans
• Commercial business — $445 million
• Yield 5.17%
• Over-30-day delinquency rate ..02%
• Net charge-offs: 2004= 0%, 2003= .09%
• Approximately 98% of all commercial loans secured
• CRE location mix: 91% Midwest, 9% Other
14) Checking Accounts +8%*
|
| 12/00 |
| 12/01 |
| 12/02 |
| 12/03 |
| 6/04 |
|
|
| (000s) |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Supermarket Branches |
| 417 |
| 499 |
| 552 |
| 611 |
| 642 |
|
Traditional Branches |
| 714 |
| 750 |
| 786 |
| 833 |
| 861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
| 1,131 |
| 1,249 |
| 1,338 |
| 1,444 |
| 1,503 |
|
* Twelve-month growth rate
15) Fee Revenue Per Retail Checking Account
|
| 2000 |
| 2001 |
| 2002 |
| 2003 |
| 6/04* |
| |||||
|
| (In Dollars) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Fee Revenue per Retail Checking Account |
| $ | 190 |
| $ | 209 |
| $ | 218 |
| $ | 223 |
| $ | 227 |
|
* Trailing twelve months
16) Small Business Checking Deposits +21%*
|
| 12/00 |
| 12/01 |
| 12/02 |
| 12/03 |
| 6/04 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Small Business Checking Deposits |
| $ | 253 |
| $ | 313 |
| $ | 380 |
| $ | 461 |
| $ | 512 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
# of accounts |
| 69,179 |
| 79,865 |
| 91,385 |
| 102,557 |
| 108,780 |
| |||||
* Twelve-month growth rate
17) Campus Banking
At June 30, 2004
• Alliances with:
• University of Minnesota
• University of Michigan
• St. Cloud State University in MN
• Minnesota State University - Mankato
• Northern Illinois University - - Dekalb
• Saginaw Valley State University in MI
• Brown College in MN
• 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.
• 81,000 total checking accounts
• $99.7 million in deposits
18) New Products and Services
• TCF Premier Checking PlusSM
• TCF Miles PlusSM Card
• TCF Check CashingSM
• TCF Express CoinSM Service coin counters
• TCF Command ProtectionSM Plan
• Monthly payments
• Another source of fee revenue
• Medical equipment leasing
19) Power ProfitsSM
Average Balance ($ millions)
Profit center net income ($ in 000s)
|
|
|
| YTD 2004 |
|
|
| ||
|
| Balance |
| Income |
| % |
| ||
Commercial Lending |
| $ | 2,392 |
| $ | 14,488 |
| 12 | % |
Consumer Lending |
| 4,079 |
| 29,003 |
| 23 |
| ||
Leasing and Equipment Finance |
| 1,240 |
| 16,764 |
| 13 |
| ||
Mortgage Banking |
| 99 |
| 322 |
| — |
| ||
Total Power Assets® |
| $ | 7,810 |
| 60,577 |
| 48 |
| |
|
|
|
|
|
|
|
| ||
Traditional Branches (170) |
| $ | 6,135 |
| 35,350 |
| 28 |
| |
Supermarket Branches (241) |
| 1,621 |
| 16,988 |
| 14 |
| ||
Total Power Liabilities® |
| $ | 7,756 |
| 52,338 |
| 42 |
| |
Total Power Assets & Liabilities |
|
|
| 112,915 |
| 90 |
| ||
Equity |
|
|
| 12,871 |
| 10 |
| ||
Total Power Businesses |
|
|
| 125,786 |
| 100 |
| ||
Treasury Services and Other |
|
|
| 93 |
| — |
| ||
Net Income |
|
|
| $ | 125,879 |
| 100 | % | |
20) Interest Rate Risk, Mortgage Banking & Capital
Neil W. Brown
Chief Financial Officer & Treasurer
21) Net Interest Income
|
| 2000 |
| 2001 |
| 2002 |
| 2003 |
| 2004 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
First Quarter |
| $ | 106.8 |
| $ | 113.8 |
| $ | 124.5 |
| $ | 122.4 |
| $ | 118.5 |
|
Second Quarter |
| $ | 110.2 |
| $ | 119.3 |
| $ | 124.3 |
| $ | 119.8 |
| $ | 122.4 |
|
Third Quarter |
| $ | 110.7 |
| $ | 122.4 |
| $ | 123.8 |
| $ | 119.9 |
| $ | — |
|
Fourth Quarter |
| $ | 110.8 |
| $ | 125.7 |
| $ | 126.6 |
| $ | 119.1 |
| $ | — |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
| $ | 439 |
| $ | 481 |
| $ | 499 |
| $ | 481 |
| $ | 241 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net Interest Margin: |
| 4.35 | % | 4.51 | % | 4.71 | % | 4.54 | % | 4.52 | %* | |||||
* Year-to-date
22) TCF vs. Top 50 Banks* - Net Interest Margin
Quarter Ended June 30, 2004
WESTCORP |
| WES |
| 5.02% |
WELLS FARGO & CO |
| WFC |
| 4.83% |
TCF FINANCIAL CORP |
| TCB |
| 4.53% |
CITY NATIONAL CORP |
| CYN |
| 4.49% |
COMMERCE BANCORP INC/NJ |
| CBH |
| 4.29% |
U S BANCORP |
| USB |
| 4.28% |
NATIONAL CITY CORP |
| NCC |
| 4.26% |
NORTH FORK BANCORPORATION |
| NFB |
| 4.26% |
SYNOVUS FINANCIAL CP |
| SNV |
| 4.24% |
MERCANTILE BANKSHARES CORP |
| MRBK |
| 4.24% |
ZIONS BANCORPORATION |
| ZION |
| 4.20% |
BB&T CORP |
| BBT |
| 4.02% |
HIBERNIA CORP -CL A |
| HIB |
| 4.00% |
UNIONBANCAL CORP |
| UB |
| 3.98% |
COMMERCE BANCSHARES INC |
| CBSH |
| 3.85% |
NATIONAL COMMERCE FINANCIAL |
| NCF |
| 3.84% |
NEW YORK CMNTY BANCORP INC |
| NYB |
| 3.83% |
ASSOCIATED BANC CORP |
| ASBC |
| 3.80% |
COMERICA INC. |
| CMA |
| 3.77% |
POPULAR INC |
| BPOP |
| 3.77% |
SKY FINANCIAL GR |
| SKYF |
| 3.69% |
M & T BANK CORP |
| MTB |
| 3.67% |
BANKNORTH GROUP INC |
| BNK |
| 3.66% |
UNION PLANTERS CORP |
| UPC |
| 3.65% |
MARSHALL & ILSLEY CORP |
| MI |
| 3.61% |
COLONIAL BANCGROUP |
| CNB |
| 3.61% |
COMPASS BANCSHARES INC |
| CBSS |
| 3.58% |
KEYCORP |
| KEY |
| 3.57% |
FIFTH THIRD BANCORP |
| FITB |
| 3.54% |
REGIONS FINL CORP |
| RF |
| 3.53% |
SOUTHTRUST CORP |
| SOTR |
| 3.51% |
BOK FINANCIAL CORP |
| BOKF |
| 3.46% |
AMSOUTH BANCORPORATION |
| ASO |
| 3.44% |
WACHOVIA CORP |
| WB |
| 3.37% |
FIRST CITIZENS |
| FCNCA |
| 3.33% |
FIRST HORIZON NATIONAL CORP |
| FHN |
| 3.32% |
HUNTINGTON BANCSHARES |
| HBAN |
| 3.32% |
BANK ONE CORP |
| ONE |
| 3.30% |
BANK OF AMERICA CORP |
| BAC |
| 3.26% |
SOVEREIGN BANCORP INC |
| SOV |
| 3.25% |
PNC FINANCIAL SVCS GROUP INC |
| PNC |
| 3.18% |
SUNTRUST BANKS INC |
| STI |
| 3.13% |
CHARTER ONE FINANCIAL INC |
| CF |
| 3.08% |
WEBSTER FINANCIAL CORP |
| WBS |
| 3.02% |
CITIGROUP INC |
| C |
| 2.69% |
HUDSON CITY BANCORP |
| HCBK |
| 2.65% |
MELLON FINANCIAL CORP |
| MEL |
| 2.24% |
J P MORGAN CHASE & CO |
| JPM |
| 2.19% |
BANK OF NEW YORK CO INC |
| BK |
| 2.08% |
NORTHERN TRUST CORP |
| NTRS |
| 1.60% |
STATE STREET CORP |
| STT |
| 1.13% |
|
|
|
|
|
AVERAGE |
|
|
| 3.53% |
* Represents the fifty largest bank holding companies in the U.S. based on asset size at 6/30/04
Source: Citigate Financial Intelligence
23) Interest Rate Risk Management
Cumulative One Year Positive Gap
|
| 12/00 |
| 12/01 |
| 12/02 |
| 12/03 |
| 6/04 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Adjusted Gap |
| $ | (215 | ) | $ | 242 |
| $ | 1,110 |
| $ | 161 |
| $ | 1,015 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Adjusted Gap as a % of Total Assets |
| (1.9 | )% | 2.1 | % | 9.1 | % | 1.4 | % | 8.5 | % | |||||
24) Rising Rate Scenario
($ millions)
What happens to 1-year gap if rates increase 50 bps?
June 30, 2004 - Base (8.5%) |
| $ | 1,015 |
|
Loans releasing from floors |
| 416 |
| |
Decrease in assumed prepayments |
| (201 | ) | |
Other |
| (200 | ) | |
June 30, 2004 - Up 50 bps (8.6%) |
| $ | 1,030 |
|
25) Falling Rate Scenario
($ millions)
What happens to 1-year gap if rates decrease 50 bps?
June 30, 2004 - Base (8.5%) |
| $ | 1,015 |
|
Additional floor benefit |
| (1,221 | ) | |
Increase in assumed prepayments |
| 324 |
| |
June 30, 2004 - Down 50 bps (1.0%) |
| $ | 119 |
|
26) Federal Reserve Rate Change
($ millions)
What was the impact of the June 30, 2004 Fed rate change?
Consumer loans repriced |
| $ | 1,729 |
|
Commercial loans repriced |
| 866 |
| |
Total |
| 2,595 |
| |
|
|
|
| |
Deposits repriced |
| (180 | ) | |
Debt repriced |
| (570 | ) | |
Total |
| (750 | ) | |
|
|
|
| |
Net assets repriced |
| $ | 1,845 |
|
27) Securities Available for Sale and Residential Portfolios
Ending Balance
|
| 12/00 |
| 12/01 |
| 12/02 |
| 12/03 |
| 6/04 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Securities available for sale portfolio* |
| $ | 1,419 |
| $ | 1,575 |
| $ | 2,355 |
| $ | 1,524 |
| $ | 1,611 |
|
Residential portfolio |
| 3,674 |
| 2,733 |
| 1,800 |
| 1,213 |
| 1,092 |
| |||||
Total |
| $ | 5,093 |
| $ | 4,308 |
| $ | 4,155 |
| $ | 2,737 |
| $ | 2,703 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rate: |
| 7.05 | % | 6.76 | % | 6.25 | % | 5.55 | % | 5.47 | % | |||||
* Based on historical amortized cost
28) Summary of Consumer and Commercial Loans
($ millions)
|
| At June 30, 2004 |
| ||||||||||||||||
|
| Consumer |
| Commercial |
| Total |
| ||||||||||||
|
| Amount |
| % of |
| Amount |
| % of |
| Amount |
| % of |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Variable-rate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Immediately reprice if rate index increases |
| $ | 2,115 |
| 53 | % | $ | 889 |
| 36 | % | $ | 3,004 |
| 47 | % | |||
Other |
| 364 |
| 9 |
| 233 |
| 10 |
| 597 |
| 9 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total variable-rate loans |
| 2,479 |
| 62 |
| 1,122 |
| 46 |
| 3,601 |
| 56 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Adjustable-rate loans |
| — |
| — |
| 909 |
| 37 |
| 909 |
| 14 |
| ||||||
Fixed-rate loans |
| 1,546 |
| 38 |
| 412 |
| 17 |
| 1,958 |
| 30 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total fixed- and adjustable-rate loans |
| 1,546 |
| 38 |
| 1,321 |
| 54 |
| 2,867 |
| 44 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total consumer and commercial loans |
| $ | 4,025 |
| 100 | % | $ | 2,443 |
| 100 | % | $ | 6,468 |
| 100 | % | |||
29) Power Liabilities®
Average Balance
($ millions)
|
| 2Q04 |
| 2Q03 |
| ||||||
|
| Balance |
| Rate |
| Balance |
| Rate |
| ||
Checking |
| $ | 3,597 |
| .08 | % | $ | 3,042 |
| .03 | % |
Savings |
| 1,983 |
| .32 |
| 2,154 |
| .43 |
| ||
Money market |
| 799 |
| .37 |
| 897 |
| .53 |
| ||
Total core |
| 6,379 |
| .19 |
| 6,093 |
| .24 |
| ||
Certificates |
| 1,468 |
| 1.77 |
| 1,826 |
| 2.59 |
| ||
Total Power Liabilities |
| $ | 7,847 |
| .49 | % | $ | 7,919 |
| .79 | % |
30) Mortgage Banking
31) Mortgage Banking
At June 30, 2004
• Total loans serviced - $4.8 billion
• Weighted average note rate of 5.83%
• MSR net book value - $51.3 million
• MSR as a percentage of servicing portfolio - 1.08%
• 2004 loans funded - $587.2 million
• Mortgage applications in process - $308.4 million
32) Mortgage Banking
|
| 12/00 |
| 12/01 |
| 12/02 |
| 12/03 |
| 6/04 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Third party servicing portfolio |
| $ | 3,971 |
| $ | 4,679 |
| $ | 5,576 |
| $ | 5,123 |
| $ | 4,768 |
|
MSR asset, net |
| $ | 40.1 |
| $ | 58.3 |
| $ | 62.6 |
| $ | 52.0 |
| $ | 51.3 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
MSR/Servicing: |
| 1.01 | % | 1.25 | % | 1.12 | % | 1.02 | % | 1.08 | % | |||||
33) Mortgage Originations
|
| 12/00 |
| 12/01 |
| 12/02 |
| 12/03 |
| 6/04 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Retail |
| $ | 206.2 |
| $ | 748.5 |
| $ | 1,063.6 |
| $ | 1,358.5 |
| $ | 354.1 |
|
Wholesale |
| $ | 611.2 |
| $ | 1,887.7 |
| $ | 1,834.5 |
| $ | 1,676.4 |
| $ | 233.1 |
|
Total |
| $ | 817 |
| $ | 2,636 |
| $ | 2,898 |
| $ | 3,035 |
| $ | 587 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Home Purchases % |
| 80.7 | % | 40.5 | % | 32.5 | % | 25.6 | % | 44.7 | % | |||||
34) Capital
35) Bank Subordinated Debt Issue-10Y/NC5
• $75 million, with a coupon of 5.00%, issued by TCF National Bank
• Proceeds paid to holding company and will be used for general corporate purposes, which may include repurchases of TCF stock
• 10 year maturity
• TCF can call quarterly after 5 years
• If not called, reprices quarterly at LIBOR +163 bps
• Tier II Regulatory Capital
36) Risk-Based Capital
|
| 12/00 |
| 12/01 |
| 12/02 |
| 12/03 |
| 6/04 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Actual |
| $ | 826 |
| $ | 834 |
| $ | 851 |
| $ | 842 |
| $ | 952 |
|
Minimum Requirement |
| $ | 570 |
| $ | 593 |
| $ | 622 |
| $ | 628 |
| $ | 666 |
|
Well Capitalized Requirement |
| $ | 712 |
| $ | 741 |
| $ | 777 |
| $ | 785 |
| $ | 833 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Tier 1: |
| 10.66 | % | 10.24 | % | 9.96 | % | 9.75 | % | 9.57 | % | |||||
Total: |
| 11.59 | % | 11.26 | % | 10.95 | % | 10.73 | % | 11.43 | % | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Excess: |
| $ | 113.5 |
| $ | 93.2 |
| $ | 73.6 |
| $ | 57.4 |
| $ | 119.3 |
|
37) Share Repurchase Program
|
| 1998 |
| 1999 |
| 2000 |
| 2001 |
| 2002 |
| 2003 |
| 6/04 |
| |||||||
|
| (000s) |
| |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Shares Purchased: |
| 7,549 |
| 4,092 |
| 3,244 |
| 3,670 |
| 3,108 |
| 3,459 |
| 753 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Shares Outstanding: |
| 85,569 |
| 81,944 |
| 80,289 |
| 76,932 |
| 73,856 |
| 70,476 |
| 69,788 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Average Purchase Price: |
| $ | 27.94 |
| $ | 25.93 |
| $ | 22.76 |
| $ | 40.34 |
| $ | 47.62 |
| $ | 43.46 |
| $ | 54.28 |
|
38) Dividend History +15%*
|
| 1995 |
| 1996 |
| 1997 |
| 1998 |
| 1999 |
| 2000 |
| 2001 |
| 2002 |
| 2003 |
| 2004 |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Dividends Paid |
| $ | .30 |
| $ | .36 |
| $ | .47 |
| $ | .61 |
| $ | .73 |
| $ | .83 |
| $ | 1.00 |
| $ | 1.15 |
| $ | 1.30 |
| $ | 1.50 | 2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Dividend payout ratio: |
| 35 | % | 30 | % | 28 | % | 35 | % | 36 | % | 35 | % | 37 | % | 37 | % | 43 | % | 41 | % | ||||||||||
10-year compounded annual growth rate 20%
Ranks 3rd of the Top 50 Banks1
* Annual growth rate (‘04 vs. ‘03)
1 Source: Citigate Financial Intelligence
2 Annualized, subject to Board of Directors approval
39) Stock Split (two-for-one)
• Declared - - August 3, 2004
• Record date - August 13, 2004
• Payable - - September 3, 2004
• Increases TCF’s common shares issued and outstanding from approximately 70 million shares to approximately 140 millions shares
• Stock split history
• November 1995
• November 1997
• August 2004
40) Return to Shareholders1 +24%*
Period Ending
|
| Index Value |
| |||||||||||||||||||||||||||||||
|
| 6/30/94 |
| 6/30/95 |
| 6/30/96 |
| 6/30/97 |
| 6/30/98 |
| 6/30/99 |
| 6/30/00 |
| 6/30/01 |
| 6/30/02 |
| 6/30/03 |
| 6/30/04 |
| |||||||||||
|
| ($) |
| |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
TCF Financial Corporation |
| $ | 100.00 |
| $ | 143.93 |
| $ | 205.98 |
| $ | 311.98 |
| $ | 379.52 |
| $ | 368.23 |
| $ | 349.84 |
| $ | 646.71 |
| $ | 701.24 |
| $ | 585.44 |
| $ | 877.12 |
|
S&P 500 |
| $ | 100.00 |
| $ | 126.26 |
| $ | 159.19 |
| $ | 214.48 |
| $ | 280.05 |
| $ | 343.61 |
| $ | 369.18 |
| $ | 315.22 |
| $ | 258.30 |
| $ | 259.55 |
| $ | 309.37 |
|
SNL All Bank & Thrift Index |
| $ | 100.00 |
| $ | 116.24 |
| $ | 157.00 |
| $ | 241.00 |
| $ | 336.58 |
| $ | 353.17 |
| $ | 293.04 |
| $ | 390.51 |
| $ | 386.39 |
| $ | 412.14 |
| $ | 487.70 |
|
1 Assumes $100 invested June 30, 1994 with dividends reinvested
* Annualized return since 6/30/94
Source: SNL Securities LC
41) Card Products
Earl D. Stratton
Chief Information Officer
42) Card Revenue
|
| 2000 |
| 2001 |
| 2002 |
| 2003 |
| 2004 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
First Quarter |
| $ | 6.0 |
| $ | 8.1 |
| $ | 10.2 |
| $ | 13.2 |
| $ | 13.5 |
|
Second Quarter |
| $ | 7.1 |
| $ | 9.3 |
| $ | 11.8 |
| $ | 14.8 |
| $ | 16.0 |
|
Third Quarter |
| $ | 7.5 |
| $ | 10.1 |
| $ | 12.1 |
| $ | 12.9 |
| $ | — |
|
Fourth Quarter |
| $ | 8.2 |
| $ | 10.1 |
| $ | 13.1 |
| $ | 12.1 |
| $ | — |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
| $ | 28.8 |
| $ | 37.6 |
| $ | 47.2 |
| $ | 53.0 |
| $ | 29.5 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Sales volume: |
| $ | 2,025 |
| $ | 2,560 |
| $ | 3,216 |
| $ | 3,899 |
| $ | 2,259 | * |
|
|
|
|
|
|
|
|
|
|
|
| |||||
Average off-line interchange rate: |
| 1.53 | % | 1.55 | % | 1.55 | % | 1.43 | % | 1.39 | %* | |||||
* Year-to-date
43) Customer Payment Activity
(Volume # in 000’s)
|
| June 2003 |
| June 2004 |
| % |
|
|
|
|
|
|
|
|
|
Checks |
| 10,713 |
| 10,057 |
| -6.1 | % |
ATM |
| 3,804 |
| 3,867 |
| 1.6 | % |
ACH |
| 2,636 |
| 3,636 |
| 37.9 | % |
Card Purchases |
| 9,120 |
| 10,699 |
| 17.3 | % |
44) New Premier Checking Account
• Product Purpose
• Expand target market with a competitive interest bearing checking account
• Acquisition of new accounts
• Retention of maturing existing customer base
• Increase share of wallet
• Increase Power Liabilities®
• Primary Market
• Middle and high income households ($75,000 and up)
45) New Premier Checking Account
• Features
• Free online banking
• Free bill pay service
• Free checks
• Free check card
• Free foreign ATM transactions (2 per month)
• Free travelers checks, money orders, cashiers checks
• Access to premier savings products (tiered interest)
46) TCF Miles Plus Credit CardSM
• Premier checking account combined with a non-revolving rewards credit card.
• Free miles credit card (no annual fee)
• Higher minimum deposit to open ($2,500)
• Minimum balance requirement ($5,000)
• Targets high spend travel rewards card users
• 83% of travel reward cards do not revolve
• Frustrated with frequent flyer miles blackout periods
47) TCF Miles Plus Credit CardSM
• Features
• Same as premier checking product
• Payment automatically deducted from premier checking account 15 days after statement date
• Credit card limit is tiered based on FICO score
• Online access to month-to-date purchases
48) TCF Miles Plus Credit CardSM
• Miles Plus Rewards description
• No annual or monthly fee
• $1 spent = 1 point
• Travel any airline
• No limited availability
• No blackout dates
• Average ticket 25,000 points (you choose flight and cost in points)
• Points do not expire
• Merchandise available instead of travel
49) Credit Quality
Paul B. Brawner
Senior Credit Officer
50) Allowance for Loan & Lease Losses
|
| 12/00 |
| 12/01 |
| 12/02 |
| 12/03 |
| 6/04 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Allowance for Loan & Lease Losses |
| $ | 66.7 |
| $ | 75.0 |
| $ | 77.0 |
| $ | 76.6 |
| $ | 80.0 |
|
Net Charge-offs (NCO) |
| $ | 3.9 |
| $ | 12.5 |
| $ | 20.0 |
| $ | 12.9 |
| $ | 2.6 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
As a % of Loans & Leases: |
|
|
|
|
|
|
|
|
|
|
| |||||
Allowance |
| .78 | % | .91 | % | .95 | % | .92 | % | .90 | % | |||||
NCO |
| .05 | % | .15 | % | .25 | % | .16 | % | .06 | %* | |||||
Coverage Ratio |
| 17.3 | X | 6.0 | X | 3.8 | X | 5.9 | X | 15.3 | X* | |||||
* Annualized
51) Net Charge-offs by Business Line
|
| 2000 |
| 2001 |
| 2002 |
| 2003 |
| YTD 2004* |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer |
| .12 | % | .13 | % | .15 | % | .10 | % | .07 | % |
Commercial real estate |
| (.02 | ) | — |
| .12 |
| .07 |
| — |
|
Commercial business |
| (.15 | ) | .06 |
| 1.35 |
| .18 |
| .03 |
|
Leasing and equipment finance |
| .33 |
| 1.00 |
| .80 |
| .69 |
| .21 |
|
Residential real estate |
| — |
| — |
| — |
| .01 |
| .01 |
|
Total |
| .05 |
| .15 |
| .25 |
| .16 |
| .06 |
|
* Annualized
52) Delinquencies (over 30-day)*
|
| 12/00 |
| 12/01 |
| 12/02 |
| 12/03 |
| 6/04 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Delinquencies |
| $ | 58.9 |
| $ | 46.8 |
| $ | 46.3 |
| $ | 38.7 |
| $ | 38.9 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Delinquencies (percent) |
| .69 | % | .57 | % | .57 | % | .47 | % | .44 | % | |||||
* Excludes non-accrual loans and leases
53) Non-Performing Assets
|
| 12/00 |
| 12/01 |
| 12/02 |
| 12/03 |
| 6/04 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Non-Accrual Loans and Leases |
| $ | 35.2 |
| $ | 52.0 |
| $ | 43.6 |
| $ | 35.4 |
| $ | 36.7 |
|
Real Estate Owned |
| $ | 10.9 |
| $ | 14.6 |
| $ | 26.6 |
| $ | 33.5 |
| $ | 19.9 |
|
Total |
| $ | 46.1 |
| $ | 66.6 |
| $ | 70.2 |
| $ | 68.9 |
| $ | 56.6 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Reserves/NAs: |
| 189 | % | 144 | % | 176 | % | 216 | % | 218 | % | |||||
NPAs/Assets: |
| .41 | % | .59 | % | .58 | % | .61 | % | .47 | % | |||||
54) Potential Problem Loans
|
| 12/00 |
| 12/01 |
| 12/02 |
| 12/03 |
| 6/04 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Consumer |
| $ | — |
| $ | .6 |
| $ | 4.5 |
| $ | — |
| $ | — |
|
Commercial real estate |
| $ | 3.5 |
| $ | 15.0 |
| $ | 30.2 |
| $ | 20.3 |
| $ | 28.0 |
|
Commercial business |
| $ | 11.8 |
| $ | 41.2 |
| $ | 33.4 |
| $ | 12.7 |
| $ | 15.0 |
|
Leasing and Equipment finance |
| $ | 4.6 |
| $ | 15.1 |
| $ | 15.3 |
| $ | 15.1 |
| $ | 32.8 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
| $ | 19.9 |
| $ | 71.9 |
| $ | 83.4 |
| $ | 48.1 |
| $ | 75.8 |
|
55) TCF vs. Top 50 Banks* - Net Charge-Offs
Six Months Ended June 30, 2004
NEW YORK CMNTY BANCORP INC |
| NYB |
| — | % |
HUDSON CITY BANCORP |
| HCBK |
| — | % |
NORTHERN TRUST CORP |
| NTRS |
| .01 | % |
CITY NATIONAL CORP |
| CYN |
| .02 | % |
MERCANTILE BANKSHARES CORP |
| MRBK |
| .04 | % |
TCF FINANCIAL CORP |
| TCB |
| .06 | % |
MARSHALL & ILSLEY CORP |
| MI |
| .08 | % |
WEBSTER FINANCIAL CORP |
| WBS |
| .10 | % |
NORTH FORK BANCORPORATION |
| NFB |
| .12 | % |
WACHOVIA CORP |
| WB |
| .14 | % |
UNIONBANCAL CORP |
| UB |
| .17 | % |
ZIONS BANCORPORATION |
| ZION |
| .18 | % |
SYNOVUS FINANCIAL CP |
| SNV |
| .19 | % |
ASSOCIATED BANC CORP |
| ASBC |
| .20 | % |
BANKNORTH GROUP INC |
| BNK |
| .20 | % |
COMMERCE BANCORP INC/NJ |
| CBH |
| .21 | % |
M & T BANK CORP |
| MTB |
| .21 | % |
COLONIAL BANCGROUP |
| CNB |
| .21 | % |
CHARTER ONE FINANCIAL INC |
| CF |
| .24 | % |
SUNTRUST BANKS INC |
| STI |
| .24 | % |
NATIONAL COMMERCE FINANCIAL |
| NCF |
| .25 | % |
REGIONS FINL CORP |
| RF |
| .25 | % |
BANK OF NEW YORK CO INC |
| BK |
| .27 | % |
FIRST CITIZENS |
| FCNCA |
| .28 | % |
BOK FINANCIAL CORP |
| BOKF |
| .30 | % |
SOUTHTRUST CORP |
| SOTR |
| .32 | % |
FIRST HORIZON NATIONAL CORP |
| FHN |
| .32 | % |
HIBERNIA CORP |
| HIB |
| .34 | % |
NATIONAL CITY CORP |
| NCC |
| .36 | % |
AMSOUTH BANCORPORATION |
| ASO |
| .37 | % |
SKY FINANCIAL GR |
| SKYF |
| .38 | % |
BB&T CORP |
| BBT |
| .39 | % |
HUNTINGTON BANCSHARES |
| HBAN |
| .40 | % |
COMMERCE BANCSHARES INC (KC) |
| CBSH |
| .46 | % |
PNC FINANCIAL SVCS GROUP INC |
| PNC |
| .48 | % |
SOVEREIGN BANCORP INC |
| SOV |
| .49 | % |
COMMERCIAL FEDERAL CORP |
| CFB |
| .49 | % |
FIFTH THIRD BANCORP |
| FITB |
| .49 | % |
COMPASS BANCSHARES INC |
| CBSS |
| .54 | % |
COMERICA INC. |
| CMA |
| .61 | % |
BANK ONE CORP |
| ONE |
| .64 | % |
WELLS FARGO & CO |
| WFC |
| .66 | % |
POPULAR INC |
| BPOP |
| .67 | % |
KEYCORP |
| KEY |
| .70 | % |
BANK OF AMERICA CORP |
| BAC |
| .72 | % |
U S BANCORP |
| USB |
| .72 | % |
J P MORGAN CHASE & CO |
| JPM |
| .74 | % |
UNION PLANTERS CORP |
| UPC |
| 1.01 | % |
CITIGROUP INC |
| C |
| 1.78 | % |
WESTCORP |
| WES |
| 1.95 | % |
|
|
|
|
|
|
Weighted Average |
|
|
| .74 | % |
* Represents the fifty largest bank holding companies in the U.S. based on asset size at 6/30/04
Source: Citigate Financial Intelligence
56) TCF vs. Top 50 Banks* - Loan Loss Coverage
Six Months Ended June 30, 2004
(Multiple)
HUDSON CITY BANCORP |
| HCBK |
| 1927.86 | X |
NORTHERN TRUST CORP |
| NTRS |
| 88.69 | X |
CITY NATIONAL CORP |
| CYN |
| 86.09 | X |
MERCANTILE BANKSHARES CORP |
| MRBK |
| 47.01 | X |
MARSHALL & ILSLEY CORP |
| MI |
| 18.02 | X |
TCF FINANCIAL CORP |
| TCB |
| 15.30 | X |
WEBSTER FINANCIAL CORP |
| WBS |
| 13.97 | X |
UNIONBANCAL CORP |
| UB |
| 11.23 | X |
WACHOVIA CORP |
| WB |
| 9.71 | X |
NORTH FORK BANCORPORATION |
| NFB |
| 8.65 | X |
ASSOCIATED BANC CORP |
| ASBC |
| 8.31 | X |
COMMERCE BANCORP INC/NJ |
| CBH |
| 8.18 | X |
M & T BANK CORP |
| MTB |
| 8.00 | X |
SYNOVUS FINANCIAL CP |
| SNV |
| 7.60 | X |
ZIONS BANCORPORATION |
| ZION |
| 7.55 | X |
BANKNORTH GROUP INC |
| BNK |
| 7.14 | X |
BOK FINANCIAL CORP |
| BOKF |
| 6.00 | X |
BANK OF NEW YORK CO INC |
| BK |
| 5.86 | X |
COLONIAL BANCGROUP |
| CNB |
| 5.72 | X |
REGIONS FINL CORP |
| RF |
| 5.47 | X |
FIRST CITIZENS |
| FCNCA |
| 5.33 | X |
CHARTER ONE FINANCIAL INC |
| CF |
| 5.30 | X |
NATIONAL COMMERCE FINANCIAL |
| NCF |
| 5.26 | X |
HIBERNIA CORP |
| HIB |
| 5.10 | X |
SUNTRUST BANKS INC |
| STI |
| 4.90 | X |
SOUTHTRUST CORP |
| SOTR |
| 4.55 | X |
NATIONAL CITY CORP |
| NCC |
| 3.95 | X |
SKY FINANCIAL GR |
| SKYF |
| 3.70 | X |
COMMERCE BANCSHARES INC (KC) |
| CBSH |
| 3.57 | X |
BB&T CORP |
| BBT |
| 3.57 | X |
FIRST HORIZON NATIONAL CORP |
| FHN |
| 3.53 | X |
AMSOUTH BANCORPORATION |
| ASO |
| 3.50 | X |
HUNTINGTON BANCSHARES |
| HBAN |
| 3.49 | X |
PNC FINANCIAL SVCS GROUP INC |
| PNC |
| 3.37 | X |
BANK ONE CORP |
| ONE |
| 3.15 | X |
FIFTH THIRD BANCORP |
| FITB |
| 3.13 | X |
COMERICA INC. |
| CMA |
| 3.02 | X |
KEYCORP |
| KEY |
| 2.97 | X |
BANK OF AMERICA CORP |
| BAC |
| 2.83 | X |
POPULAR INC |
| BPOP |
| 2.82 | X |
SOVEREIGN BANCORP INC |
| SOV |
| 2.72 | X |
COMPASS BANCSHARES INC |
| CBSS |
| 2.71 | X |
U S BANCORP |
| USB |
| 2.56 | X |
COMMERCIAL FEDERAL CORP |
| CFB |
| 2.55 | X |
WELLS FARGO & CO |
| WFC |
| 2.48 | X |
J P MORGAN CHASE & CO |
| JPM |
| 2.37 | X |
WESTCORP |
| WES |
| 1.42 | X |
CITIGROUP INC |
| C |
| 1.38 | X |
UNION PLANTERS CORP |
| UPC |
| 1.36 | X |
|
|
|
|
|
|
Weighted Average |
|
|
| 2.44 | X |
* Represents the fifty largest bank holding companies in the U.S. based on asset size at 6/30/04
Allowance at 6/30/04 divided by annualized year-to-date net charge-offs.
Source: Citigate Financial Intelligence
57) New Branch Expansion & Banking Operations
Barry N. Winslow
CEO & President
TCF National Bank
58) Total New Branches1
|
| 12/98 |
| 12/99 |
| 12/00 |
| 12/01 |
| 12/02 |
| 12/03 |
| 6/04 |
| 2004 Forecast |
| 2005 Plan |
|
|
| (#) |
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supermarket |
| 99 |
| 133 |
| 153 |
| 174 |
| 184 |
| 186 |
| 189 |
| 197 |
| 205 |
|
Traditional |
| 6 |
| 7 |
| 10 |
| 16 |
| 28 |
| 42 |
| 48 |
| 64 |
| 87 |
|
Total |
| 105 |
| 140 |
| 163 |
| 190 |
| 212 |
| 228 |
| 237 |
| 261 |
| 292 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of total |
| 38.5 | % | 45.8 | % | 49.4 | % | 53.5 | % | 55.5 | % | 56.9 | % | 57.7 | % | 60.0 | % | 62.7 | % |
1 Branches opened since January 1, 1998
59) Branch Growth - Select Peers
Bank branch growth from 1999 to 20031
|
| # of New Branches |
|
TCF Financial Corp.2 |
| 81 |
|
Fifth Third |
| (30 | ) |
Bank One |
| (121 | ) |
U.S. Bancorp |
| (108 | ) |
Wells Fargo |
| (229 | ) |
|
|
|
|
Total Top 50 Banks |
| (1,977 | ) |
1 Source: American Banker, January 15, 2004
2 Fourth largest in bank branch growth
60) 2004 & 2005 New Branch Expansion
|
| 2004 |
| 2005 |
| ||||||||
|
| (#) |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Supermarket |
|
|
| Traditional |
| Supermarket |
|
|
| Traditional |
|
Minnesota |
| 3 |
|
|
| 1 |
| 2 |
|
|
| 2 |
|
Lakeshore |
| 1 |
|
|
| 6 |
| 2 |
|
|
| 8 |
|
Michigan |
| — |
|
|
| 7 |
| — |
|
|
| 8 |
|
Colorado |
| 7 |
|
|
| 8 |
| 4 |
|
|
| 5 |
|
Total |
| 11 |
|
|
| 22 |
| 8 |
|
|
| 23 |
|
Total |
|
|
| 33 |
|
|
|
|
| 31 |
|
|
|
61) New Branch1 Total Deposits +17%*
|
| 12/98 |
| 12/99 |
| 12/00 |
| 12/01 |
| 12/02 |
| 12/03 |
| 6/04 |
| |||||||
|
| ($ millions) |
| |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Deposits |
| $ | 190 |
| $ | 344 |
| $ | 594 |
| $ | 744 |
| $ | 1,088 |
| $ | 1,225 |
| $ | 1,366 |
|
1 Branches opened since January 1, 1998
* Twelve-month growth rate
62) New Branch1 Total Checking Accounts +20%*
|
| 12/98 |
| 12/99 |
| 12/00 |
| 12/01 |
| 12/02 |
| 12/03 |
| 6/04 |
|
|
| (000s) |
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking Accounts |
| 98 |
| 189 |
| 250 |
| 340 |
| 408 |
| 492 |
| 539 |
|
1 Branches opened since January 1, 1998
* Twelve -month growth rate
63) New Branch1 Banking Fees & Other Revenue2 +23%*
|
| 1998 |
| 1999 |
| 2000 |
| 2001 |
| 2002 |
| 2003 |
| 2004 |
| |||||||
|
| ($ millions) |
| |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
First Quarter |
| $ | .8 |
| $ | 6.9 |
| $ | 11.8 |
| $ | 17.8 |
| $ | 21.8 |
| $ | 27.0 |
| $ | 32.2 |
|
Second Quarter |
| $ | 3.2 |
| $ | 9.5 |
| $ | 15.2 |
| $ | 21.8 |
| $ | 27.6 |
| $ | 32.8 |
| $ | 41.4 |
|
Third Quarter |
| $ | 4.5 |
| $ | 10.8 |
| $ | 16.4 |
| $ | 22.3 |
| $ | 28.5 |
| $ | 33.5 |
| $ | — |
|
Fourth Quarter |
| $ | 5.8 |
| $ | 11.9 |
| $ | 17.4 |
| $ | 23.5 |
| $ | 29.8 |
| $ | 32.8 |
| $ | — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total |
| $ | 14 |
| $ | 39 |
| $ | 61 |
| $ | 85 |
| $ | 108 |
| $ | 126 |
| $ | 74 |
|
1 Branches opened since January 1, 1998
2 Consisting of fees and service charges, debit card revenue, ATM revenue, and investments and insurance commissions.
* Twelve-month growth rate
64) Retail Model - Net Income
|
| Year of Existence |
| ||||||||||||||||||||||||||||
|
| 1 |
| 2 |
| 3 |
| 4 |
| 5 |
| 6 |
| 7 |
| 8 |
| 9 |
| 10 |
| ||||||||||
|
| Net Income* ($ 000s) |
| ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Supermarket Branch |
| $ | (185 | ) | $ | (41 | ) | $ | 24 |
| $ | 91 |
| $ | 89 |
| $ | 139 |
| $ | 188 |
| $ | 215 |
| $ | 252 |
| $ | 282 |
|
Traditional Branch |
| $ | (348 | ) | $ | (154 | ) | $ | (15 | ) | $ | 90 |
| $ | 119 |
| $ | 195 |
| $ | 253 |
| $ | 279 |
| $ | 341 |
| $ | 395 |
|
Capital Expenditure: $209,000 Supermarket branch, $3 million Traditional branch
* Excludes consumer lending
65) New Branch Banking Strategies
• Fill-in near Jewels in Chicago
• Maintain 2-3 year land bank
• Expanding mature branch revitalization program
• Future emphasis on traditional branches
66) Leasing Operations
Craig R. Dahl
EVP, TCF Financial Corporation
President of TCF Leasing, Inc.
67) Leasing and Equipment Finance +21%*
|
| 12/00 |
| 12/01 |
| 12/02 |
| 12/03 |
| 6/04 |
| |||||
|
| ($ millions) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Leasing and Equipment Finance |
| $ | 856 |
| $ | 957 |
| $ | 1,039 |
| $ | 1,160 |
| $ | 1,309 |
|
* Twelve-month growth rate
68) Leasing and Equipment Finance
At June 30, 2004
• Equipment type
• 30% manufacturing and construction
• 18% technology and data processing
• 17% specialty vehicle
• 11% medical
• 24% other
• Yield 7.03%
• Uninstalled backlog of $202.1 million; up $46.9 million from year-end 2003
• Acquired VGM Leasing, Inc., specializing in home medical equipment financing in March 2004
• Over-30-day delinquency rate 1.22%
• Net charge-offs: 2004= .21%*, 2003= .69%
• $18.8 million leveraged lease with a major airline
* Annualized
69) Leasing and Equipment Finance
Power Assets®
($ 000s)
|
| 6/30/04 |
| 12/31/03 |
| Change |
| |||
Manufacturing |
| $ | 232,187 |
| $ | 198,321 |
| $ | 33,866 |
|
Technology and data processing |
| 231,921 |
| 249,515 |
| (17,594 | ) | |||
Specialty vehicles |
| 223,399 |
| 225,073 |
| (1,674 | ) | |||
Construction |
| 157,718 |
| 133,104 |
| 24,614 |
| |||
Medical |
| 145,155 |
| 33,462 |
| 111,693 |
| |||
Trucks and trailers |
| 79,739 |
| 89,262 |
| (9,523 | ) | |||
Furniture and fixtures |
| 54,833 |
| 54,052 |
| 781 |
| |||
Printing |
| 43,009 |
| 38,977 |
| 4,032 |
| |||
Material handling |
| 28,166 |
| 27,111 |
| 1,055 |
| |||
Aircraft |
| 22,741 |
| 23,965 |
| (1,224 | ) | |||
Other |
| 90,296 |
| 87,555 |
| 2,741 |
| |||
Total |
| $ | 1,309,164 |
| $ | 1,160,397 |
| $ | 148,767 |
|
70) Leasing and Equipment Finance
Summary of Operations
($ 000s)
For the Six Months Ended June 30: |
| 2004 |
| 2003 |
| Change |
| |||
Net interest income |
| $ | 26,668 |
| $ | 21,591 |
| $ | 5,077 |
|
Provision for credit losses |
| 2,910 |
| 4,102 |
| (1,192 | ) | |||
Non-interest income |
| 22,786 |
| 25,064 |
| (2,278 | ) | |||
Non-interest expense |
| 20,486 |
| 19,701 |
| 785 |
| |||
Pre-tax income |
| 26,058 |
| 22,852 |
| 3,206 |
| |||
Income tax expense |
| 9,294 |
| 8,470 |
| 824 |
| |||
Net Income |
| $ | 16,764 |
| $ | 14,382 |
| $ | 2,382 |
|
|
|
|
|
|
|
|
| |||
ROA |
| 2.58 | % | 2.62 | % |
|
| |||
71) NYSE: TCB
The Leader In Convenience Banking
Stock Price Performance
(In Dollars)
Year-Ending |
| Stock Price |
| Dividend Paid |
| ||
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 |
|
Dec-02 |
| $ | 43.69 |
| $ | 1.15 |
|
Dec-03 |
| $ | 51.35 |
| $ | 1.30 |
|
Jun-04 |
| $ | 58.05 |
| $ | 1.50 | (annualized) |
72) 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 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; ability to increase the number of checking accounts and the possibility that deposit account losses (fraudulent checks, etc.) may increase; 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, fiscal or tax policies of the federal or state governments; changes in credit and other risks posed by TCF’s loan, lease and investment portfolios, including declines in commercial or residential real estate values; technological, computer-related or operational difficulties; adverse changes in securities markets; the risk that TCF could be unable to effectively manage the volatility of its mortgage banking business, which could adversely affect earnings; and results of litigation or other significant uncertainties. Investors should consult TCF’s Annual Report to Shareholders and reports on Forms 10-K, 10-Q and 8-K for additional important information about the Company.
Glossary of Terms
Coverage Ratio
Period-end allowance for loan and lease losses as a multiple of annualized net charge-offs.
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
Total fees associated with usage of retail and small business checking accounts divided by the average number of retail and small business checking accounts.
Fees and Other Revenue
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.
Power Assets®
Higher-yielding consumer, commercial real estate, commercial business, and leasing and equipment finance loans and leases.
Power Liabilities®
Core checking, savings, money market and certificates of deposit.
Return on Average Assets (ROA)
Annualized net income divided by average total assets for the period.
Return on Average Common Equity (ROE)
Annualized net income divided by average common stockholders’ equity for the period.
