Exhibit 99.1
TCF Financial Corporation
First Quarter 2006 Investor Presentation
The leader in convenience banking
1.) Corporate Profile
At March 31, 2006
• $13.8 billion financial holding company headquartered in Minnesota
• 43rd largest1 bank in the U.S. based on asset size
• 36th largest1 based on market cap
• 452 bank branches, 130 branches opened since January 1, 2001
• 1,723 ATMs free to TCF customers; 1,222 off-site
• 10th largest issuer of VISA® Classic debit cards2
• ROA 1.71%; ROE 23.82%; ROTE3 28.44%
• 1,629,095 checking accounts
1 Source: CapitalBridge; 12/31/05
2 Source: VISA; 4Q05; ranked by sales volume
3 Excludes the impact of intangible amortization expense (see reconciliation slide in the appendix)
2.) Corporate Profile
• Bank branches located in six states
| | At 3/31/06 | | At 1/1/01 |
Traditional | | 188 | | 132 |
Supermarket | | 255 | | 213 |
Campus | | 9 | | 7 |
Total | | 452 | | 352 |
| | | | |
| | At 3/31/06 | | At 1/1/01 |
Minnesota | | 105 | | 84 |
Illinois | | 202 | | 167 |
Michigan | | 62 | | 56 |
Colorado | | 42 | | 12 |
Wisconsin | | 35 | | 32 |
Indiana | | 6 | | 1 |
Total | | 452 | | 352 |
3.) What Makes TCF Different
• Convenience
TCF banks a large and diverse customer base by offering a host of convenient banking services:
• Open seven days a week, 364 days/year
• Traditional, supermarket and campus branches
• 1,723 ATMs free to TCF customers
• Debit cards
• Gift cards
• Phone banking
• TCF Totally Free OnlineSM banking
• De Novo Expansion
TCF is increasing its market share through de novo expansion:
• Opening new branches
• Starting new businesses
• Offering new products and services
4.) What Makes TCF Different
• Power Assets® and Power Liabilities®
Power Assets® (consumer loans, commercial real estate and business loans, and leasing and equipment finance) and low-cost Power Liabilities® (checking, savings, money market and certificates of deposit accounts) are growing and contribute a high percentage of TCF’s profits.
• Credit Quality
TCF is primarily a secured lender, emphasizing credit quality over asset growth.
5.) Share Repurchase Program
• Repurchased 2,400,000 shares of common stock during the first quarter of 2006 at an average cost of $25.27 per share
• At 3/31/06, 4.3 million shares remain available to purchase under board authorizations
6.) Return of Net Income to Stockholders
($ millions)
| | Net | | Stock | | Dividends | | | | % of Net | |
| | Income | | Repurchase | | Paid | | Total | | Income | |
| | | | | | | | | | | |
2002 | | $ | 232.9 | | $ | 148.0 | | $ | 86.5 | | $ | 234.5 | | 101 | % |
2003 | | 215.9 | | 150.4 | | 93.0 | | 243.4 | | 113 | |
2004 | | 255.0 | | 116.1 | | 104.0 | | 220.1 | | 86 | |
2005 | | 265.1 | | 93.5 | | 114.5 | | 208.0 | | 78 | |
20061 | | 58.2 | | 60.7 | | 30.8 | | 91.5 | | 157 | |
| | | | | | | | | | | |
Total | | $ | 1,027.1 | | $ | 568.7 | | $ | 428.8 | | $ | 997.5 | | 97 | % |
1 Year-to-date
7.) Consumer Home Equity Lending +17%*
($ millions)
| | 12/02 | | 12/03 | | 12/04 | | 12/05 | | 3/06 | |
Total | | $ | 2,955 | | $ | 3,588 | | $ | 4,382 | | $ | 5,149 | | $ | 5,331 | |
| | | | | | | | | | | | | | | | |
* | TweTwelve-month growth rate |
8.) Consumer Home Equity Loans
At March 31, 2006
• 75% amortizing loans, 25% lines of credit
• 33% variable rate (prime based) and 67% fixed rate
• 65% are 1st mortgages, 35% are 2nd mortgages
• Average home value of $216,491
• Yield 7.30%
• Over-30-day delinquency rate .36%1
• Net charge-offs: 2006 = .11%2, 2005 = .10%, 2004 = .09%
• Average FICO score 720
1 Excludes non-accrual loans
2 Annualized
9.) Commercial Lending +10%*
($ millions)
| | 12/02 | | 12/03 | | 12/04 | | 12/05 | | 3/06 | |
| | | | | | | | | | | |
Commercial Business | | $ | 440.1 | | $ | 427.7 | | $ | 424.1 | | $ | 435.2 | | $ | 470.1 | |
Commercial Real Estate | | $ | 1,835.8 | | $ | 1,916.7 | | $ | 2,154.4 | | $ | 2,297.5 | | $ | 2,394.7 | |
| | | | | | | | | | | |
Total | | $ | 2,276 | | $ | 2,344 | | $ | 2,579 | | $ | 2,733 | | $ | 2,865 | |
| | | | | | | | | | | | | | | | | | | | | |
* | Twelve-month growth rate |
10.) Commercial Loans
At March 31, 2006
• Commercial real estate
• 21% apartment loans
• 18% office building loans
• 5% hotel loans
• Commercial business — $470 million
• Yield 6.52%
• Over-30-day delinquency rate .11%1
• Net charge-offs/(recoveries): 2006 = .03%2, 2005 = (.08)% , 2004 = .03%
• Approximately 99% of all commercial loans secured
• CRE location mix: 94% Midwest, 6% Other
1 Excludes non-accrual loans
2 Annualized
11.) Leasing and Equipment Finance1 +15%*
($ millions)
| | 12/02 | | 12/03 | | 12/04 | | 12/05 | | 3/06 | |
| | | | | | | | | | | |
Leasing and Equipment Finance | | $ | 1,047 | | $ | 1,162 | | $ | 1,389 | | $ | 1,560 | | $ | 1,637 | |
| | | | | | | | | | | | | | | | |
1 Includes operating leases
* Twelve-month growth rate
12.) Leasing and Equipment Finance
At March 31, 2006
• 38th largest equipment finance/leasing company in the U.S.1
• 18th largest bank-owned equipment finance/leasing company in the U.S.2
• Equipment type
• 35% manufacturing and construction
• 17% specialty vehicle
• 14% technology and data processing
• 13% medical
• 21% other
• Yield 7.18%
• Originations of $250.6 million
• Uninstalled backlog of $294.1 million; up $45 million from year-end 2005
• Over-30-day delinquency rate .39%3
• Net charge-offs: 2006 = .22%4, 2005 = .18%5, 2004 = .43%
1 Source: Equipment Leasing Association; 6/05
2 Source: Equipment Leasing Association; 7/05
3 Excludes non-accrual loans and leases
4 Annualized
5 Excludes leveraged lease charge-off of $18.8 million
13.) Allowance for Loan & Lease Losses
($ millions)
| | 12/02 | | 12/03 | | 12/04 | | 12/05 | | 3/06 | |
| | | | | | | | | | | |
Allowance for Loan & Lease Losses | | $ | 77.0 | | $ | 76.6 | | $ | 79.9 | | $ | 60.4 | | $ | 59.4 | |
Net Charge-offs (NCO) | | $ | 20.0 | | $ | 12.9 | | $ | 9.5 | | $ | 24.5 | | $ | 2.5 | |
| | | | | | | | | | | |
As a % of Loans & Leases: | | | | | | | | | | | |
Allowance | | .95 | % | .92 | % | .85 | % | .59 | % | .56 | % |
NCO | | .25 | % | .16 | % | .11 | % | .25 | %1 | .10 | %2 |
Coverage Ratio | | 3.8 | X | 5.9 | X | 8.4 | X | 2.5 | X | 5.9 | X 2 |
1 Net charge-offs excluding leveraged lease were .06%
2 Annualized
14.) Delinquencies (Over 30-Day)1
| | 12/02 | | 12/03 | | 12/04 | | 12/05 | | 3/06 | |
| | | | | | | | | | | |
Delinquencies (percent) | | .57 | % | .47 | % | .37 | % | .43 | % | .35 | % |
| | | | | | | | | | | |
Delinquencies ($ millions) | | $ | 46.3 | | $ | 38.7 | | $ | 34.4 | | $ | 43.6 | | $ | 37.0 | |
| | | | | | | | | | | | | | | | |
1 Excludes non-accrual loans and leases
15.) Non-Performing Assets
($ millions)
| | 12/02 | | 12/03 | | 12/04 | | 12/05 | | 3/06 | |
| | | | | | | | | | | |
Non-Accrual Loans and Leases | | $ | 43.6 | | $ | 35.4 | | $ | 46.9 | | $ | 29.7 | | $ | 30.8 | |
Real Estate Owned | | $ | 26.6 | | $ | 33.5 | | $ | 17.2 | | $ | 17.7 | | $ | 20.7 | |
Total | | $ | 70.2 | | $ | 68.9 | | $ | 64.1 | | $ | 47.4 | | $ | 51.5 | |
| | | | | | | | | | | | | | | | |
Reserves/NAs: | | 176 | % | 216 | % | 170 | % | 204 | % | 193 | % |
NPAs/Assets: | | .58 | % | .61 | % | .52 | % | .35 | % | .37 | % |
16.) Checking Accounts +5%*
(000s)
| | 12/02 | | 12/03 | | 12/04 | | 12/05 | | 3/06 | |
| | | | | | | | | | | |
Supermarket Branches | | 549 | | 608 | | 652 | | 678 | | 690 | |
Traditional & Campus Branches | | 789 | | 836 | | 883 | | 925 | | 939 | |
| | | | | | | | | | | |
Total | | 1,338 | | 1,444 | | 1,535 | | 1,603 | | 1,629 | |
* Twelve-month growth rate
17.) Banking Fees and Other Revenue1 +7%*
($ millions)
| | 2002 | | 2003 | | 2004 | | 2005 | | 2006 | |
| | | | | | | | | | | |
First Quarter | | $ | 72.7 | | $ | 82.1 | | $ | 87.7 | | $ | 88.2 | | $ | 94.4 | |
Second Quarter | | $ | 84.7 | | $ | 92.8 | | $ | 104.5 | | $ | 100.1 | | $ | — | |
Third Quarter | | $ | 87.7 | | $ | 94.3 | | $ | 103.0 | | $ | 104.7 | | $ | — | |
Fourth Quarter | | $ | 91.3 | | $ | 90.8 | | $ | 99.1 | | $ | 101.1 | | $ | — | |
| | | | | | | | | | | |
Total | | $ | 336 | | $ | 360 | | $ | 394 | | $ | 394 | | $ | 94 | |
| | | | | | | | | | | | | | | | | |
1 Consisting of fees and service charges, card revenue, ATM revenue, and investments and insurance revenue
* Year-to-date growth rate (‘06 vs. ‘05)
18.) Retail Checking Deposits +13%*
($ millions)
| | 12/02 | | 12/03 | | 12/04 | | 12/05 | | 3/06 | |
| | | | | | | | | | | |
Supermarket Branches | | $ | 695 | | $ | 829 | | $ | 1,000 | | $ | 1,125 | | $ | 1,203 | |
Traditional & Campus Branches | | $ | 1,903 | | $ | 2,146 | | $ | 2,565 | | $ | 2,815 | | $ | 2,943 | |
| | | | | | | | | | | |
Total | | $ | 2,598 | | $ | 2,975 | | $ | 3,565 | | $ | 3,940 | | $ | 4,146 | |
| | | | | | | | | | | |
Average Rate: | | .05 | % | .01 | % | .22 | % | .74 | % | .77 | % |
* Twelve-month growth rate
19.) Retail Deposits +12%*
Quarterly Average Balances
($ millions)
| | 3/31/06 | | 3/31/05 | |
Non-interest bearing checking | | $ | 2,083 | | $ | 2,061 | |
Premier checking | | 920 | | 453 | |
Other int. bearing checking | | 891 | | 1,053 | |
Subtotal | | 3,894 | | 3,567 | |
Premier savings | | 764 | | 278 | |
Other savings | | 1,429 | | 1,585 | |
Subtotal | | 2,193 | | 1,863 | |
Money Market | | 521 | | 575 | |
Certificates | | 1,852 | | 1,523 | |
Total | | $ | 8,460 | | $ | 7,528 | |
| | | | | |
Average Rate: | | 1.74 | % | .81 | % |
* Annual growth rate
20.) Premier Checking & Savings Deposits + 132%*
Quarterly Average Balances
($000s)
| | 3/31/05 | | 6/30/05 | | 9/30/05 | | 12/31/05 | | 3/31/06 | |
| | | | | | | | | | | |
Premier Savings | | $ | 282 | | $ | 346 | | $ | 437 | | $ | 640 | | $ | 780 | |
Premier Checking | | $ | 459 | | $ | 580 | | $ | 695 | | $ | 828 | | $ | 938 | |
Total | | $ | 741 | | $ | 926 | | $ | 1,132 | | $ | 1,468 | | $ | 1,718 | |
| | | | | | | | | | | |
Average Rate: | | 2.06 | % | 2.21 | % | 2.87 | % | 3.27 | % | 3.38 | % |
| | | | | | | | | | | | | | | | | |
* Twelve-month growth rate
21.) Card Revenue +21%*
($ millions)
| | 2002 | | 2003 | | 2004 | | 2005 | | 2006 | |
| | | | | | | | | | | |
First Quarter | | $ | 10.2 | | $ | 13.2 | | $ | 13.5 | | $ | 17.6 | | $ | 21.3 | |
Second Quarter | | $ | 11.8 | | $ | 14.8 | | $ | 16.0 | | $ | 19.8 | | $ | — | |
Third Quarter | | $ | 12.1 | | $ | 12.9 | | $ | 16.3 | | $ | 21.0 | | $ | — | |
Fourth Quarter | | $ | 13.1 | | $ | 12.1 | | $ | 17.7 | | $ | 21.4 | | $ | — | |
| | | | | | | | | | | |
Total | | $ | 47.2 | | $ | 53.0 | | $ | 63.5 | | $ | 79.8 | | $ | 21.3 | |
| | | | | | | | | | | |
Sales Volume: | | $ | 3,216 | | $ | 3,899 | | $ | 4,735 | | $ | 5,673 | | $ | 1,516 | 1 |
| | | | | | | | | | | |
Average Off-line Interchange Rate: | | 1.55 | % | 1.43 | % | 1.40 | % | 1.43 | % | 1.42 | %1 |
| | | | | | | | | | | | | | | | | |
* Year-to-date growth rate (‘06 vs. ‘05)
1 Year-to-date
22.) Card Revenue
• 10th largest issuer of VISA® Classic debit cards1
• 15th largest issuer of VISA® Commercial debit cards1
• 21st largest overall issuer of VISA® cards1
• 18% increase in sales volume2
• Number of active accounts up 45,077, or 6%2, to 786,217
• 15.5 transactions per month on active cards, up 10 %2
1 Source: VISA; 4Q05; ranked by sales volume
2 1Q06 vs. 1Q05
23.) Small Business Checking Deposits
($ millions)
| | 12/02 | | 12/03 | | 12/04 | | 12/05 | | 3/06 | |
| | | | | | | | | | | |
Small Business Checking Deposits | | $ | 380 | | $ | 461 | | $ | 546 | | $ | 607 | | $ | 600 | |
| | | | | | | | | | | |
# of Accounts | | 91,385 | | 102,557 | | 113,605 | | 122,956 | | 126,537 | |
| | | | | | | | | | | | | | | | |
24.) Small Business Services and Products
At March 31, 2006
• $600 million in 0% interest checking account deposits
• Small business loans up to $500,000; small business administration loans up to $150,000; home equity loans up to $500,000
• 82,473 TCF Business Check CardsSM
• Introduced TCF Miles Plus Business Check CardSM loyalty program in April 2005
25.) Total New Branches
Branches opened since January 1, 2001
| | Traditional | | | | | | # of Branches | | Percent | |
| | and Campus | | Supermarket | | Total | | Opened | | of Total | |
| | | | | | | | | | | |
12/01 | | 5 | | 20 | | 25 | | 27 | | 7 | % |
12/02 | | 17 | | 35 | | 52 | | 27 | | 13 | % |
12/03 | | 31 | | 40 | | 71 | | 19 | | 18 | % |
12/04 | | 50 | | 51 | | 101 | | 30 | | 23 | % |
12/05 | | 71 | | 58 | | 129 | | 28 | | 28 | % |
12/06 Forecast | | 89 | | 65 | | 154 | | 25 | | 32 | % |
26.) New Traditional Branch Model - Net Income
($ 000s)
| | Year of Existence | |
| | 1 | | 2 | | 3 | | 4 | | 5 | | 6 | | 7 | | 8 | | 9 | | 10 | |
Net Income1 | | $ | (362 | ) | $ | (32 | ) | $ | 157 | | $ | 320 | | $ | 384 | | $ | 491 | | $ | 570 | | $ | 555 | | $ | 630 | | $ | 692 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Traditional branch capital expenditure $3 million
1 Includes deposits and consumer lending
27.) New Branch Total Deposits +81%*
Branches opened since January 1, 2001
($ millions)
| | 12/01 | | 12/02 | | 12/03 | | 12/04 | | 12/05 | | 3/06 | |
| | | | | | | | | | | | | |
Deposits | | $ | 24 | | $ | 142 | | $ | 238 | | $ | 442 | | $ | 980 | | $ | 1,119 | |
| | | | | | | | | | | | | | | | | | | |
* Twelve-month growth rate
28.) New Branch Total Checking Accounts +36%*
Branches opened since January 1, 2001
(000s)
| | 12/01 | | 12/02 | | 12/03 | | 12/04 | | 12/05 | | 3/06 | |
| | | | | | | | | | | | | |
Checking Accounts | | 29 | | 60 | | 103 | | 158 | | 214 | | 233 | |
* Twelve-month growth rate
29.) New Branch Banking Fees & Other Revenue1 +41%*
Branches opened since January 1, 2001
($ millions)
| | 2001 | | 2002 | | 2003 | | 2004 | | 2005 | | 2006 | |
| | | | | | | | | | | | | |
First Quarter | | $ | — | | $ | 1.1 | | $ | 3.1 | | $ | 6.3 | | $ | 10.9 | | $ | 15.4 | |
Second Quarter | | $ | 0.1 | | $ | 1.7 | | $ | 4.2 | | $ | 9.9 | | $ | 13.8 | | $ | — | |
Third Quarter | | $ | 0.3 | | $ | 2.1 | | $ | 4.9 | | $ | 10.6 | | $ | 15.0 | | $ | — | |
Fourth Quarter | | $ | 0.8 | | $ | 2.9 | | $ | 5.5 | | $ | 11.2 | | $ | 15.3 | | $ | — | |
| | | | | | | | | | | | | |
Total | | $ | 1.2 | | $ | 7.8 | | $ | 17.7 | | $ | 38.0 | | $ | 55.0 | | $ | 15.4 | |
| | | | | | | | | | | | | | | | | | | | | |
1 Consisting of fees and service charges, card revenue, ATM revenue, and investments and insurance revenue
* Twelve-month growth rate
30.) New Branch Consumer Loans +50%*
Branches opened since January 1, 2001
($ millions)
| | 12/01 | | 12/02 | | 12/03 | | 12/04 | | 12/05 | | 3/06 | |
| | | | | | | | | | | | | |
Consumer Loans | | $ | 9 | | $ | 62 | | $ | 156 | | $ | 305 | | $ | 459 | | $ | 507 | |
| | | | | | | | | | | | | | | | | | | |
* Twelve-month growth rate
31.) Campus Banking
At March 31, 2006
• Alliances with the University of Minnesota and University of Michigan plus nine other colleges, including the latest agreements with DePaul University in Chicago and Milwaukee Area Technical College
• 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.
• 89,357 total checking accounts
• $171.3 million in total deposits
32.) New Products and Services
• TCF MILES PLUSSM Card Loyalty Programs
• Premier (Retail)
• Small Business
• TCF Visa® Gift Card
• Merchant Gift Cards
• TCF Check CashingSM and Money Transfers
��� Electronic Statement Delivery
• TCF Express Check Conversion
• Medical Equipment Leasing
33.) Financial Highlights
34.) Diluted EPS
| | 1996 | | 1997 | | 1998 | | 1999 | | 2000 | | 2001 | | 2002 | | 2003 | | 2004 | | 2005 | | 20061 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Diluted EPS | | $ | .60 | | $ | .84 | | $ | .88 | | $ | 1.00 | | $ | 1.17 | | $ | 1.35 | | $ | 1.58 | | $ | 1.53 | | $ | 1.86 | | $ | 2.00 | | $ | .45 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1 Year-to-date
35.) Dividend History
| | 1996 | | 1997 | | 1998 | | 1999 | | 2000 | | 2001 | | 2002 | | 2003 | | 2004 | | 2005 | | 2006 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Dividends Paid | | $ | .18 | | $ | .23 | | $ | .31 | | $ | .36 | | $ | .41 | | $ | .50 | | $ | .58 | | $ | .65 | | $ | .75 | | $ | .85 | | $ | .23 | 2 |
| | | | | | | | | | | | | | | | | | | | | | | |
Dividend Payout Ratio: | | 30 | % | 28 | % | 35 | % | 36 | % | 35 | % | 37 | % | 37 | % | 43 | % | 40 | % | 43 | % | 51 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
10-year compounded annual growth rate of 19% is the 5th highest among the 50 largest banks in the country1
1 Source: CapitalBridge
2 Year-to-date
36.) Net Income
($ millions)
| | 2002 | | 2003 | | 2004 | | 2005 | | 20061 | |
| | | | | | | | | | | |
First Quarter | | $ | 56.3 | | $ | 60.1 | | $ | 60.7 | | $ | 63.5 | | $ | 58.2 | |
Second Quarter | | $ | 58.0 | | $ | 60.3 | | $ | 65.2 | | $ | 70.6 | | $ | — | |
Third Quarter | | $ | 58.9 | | $ | 36.0 | | $ | 61.7 | | $ | 65.5 | | $ | — | |
Fourth Quarter | | $ | 59.8 | | $ | 59.5 | | $ | 67.4 | | $ | 65.5 | | $ | — | |
| | | | | | | | | | | |
Total | | $ | 233 | | $ | 216 | | $ | 255 | | $ | 265 | | $ | 58 | |
1 Year-to-date
37.) First Quarter Significant Items
($ 000s)
| | 2006 | | 2005 | | Change | |
Mortgage-backed Securities Gains | | $ | — | | $ | 5,239 | | $ | (5,239 | ) |
Building Sales | | 2,921 | | 5,704 | | (2,783 | ) |
Sale of Mortgage Servicing Rights (net gain) | | 1,601 | | — | | 1,601 | |
Total Asset Sale Gains | | 4,522 | | 10,943 | | (6,421 | ) |
| | | | | | | |
Commercial Loan Recovery | | — | | 3,322 | | (3,322 | ) |
Pre-tax Total | | $ | 4,522 | | $ | 14,265 | | $ | (9,743 | ) |
| | | | | | | |
After-tax Total | | $ | 3,018 | | $ | 9,379 | | $ | (6,361 | ) |
| | | | | | | |
Impact on Diluted EPS | | $ | 0.02 | | $ | 0.07 | | $ | (0.05 | ) |
| | | | | | | | | | | |
38.) Net Interest Income
($ millions)
| | 2002 | | 2003 | | 2004 | | 2005 | | 20061 | |
| | | | | | | | | | | |
First Quarter | | $ | 124.5 | | $ | 122.4 | | $ | 118.4 | | $ | 129.1 | | $ | 131.2 | |
Second Quarter | | $ | 124.3 | | $ | 119.8 | | $ | 122.4 | | $ | 131.3 | | $ | — | |
Third Quarter | | $ | 123.8 | | $ | 119.9 | | $ | 124.5 | | $ | 128.1 | | $ | — | |
Fourth Quarter | | $ | 126.6 | | $ | 119.1 | | $ | 126.5 | | $ | 129.3 | | $ | — | |
| | | | | | | | | | | |
Total | | $ | 499 | | $ | 481 | | $ | 492 | | $ | 518 | | $ | 131 | |
| | | | | | | | | | | |
Net Interest Margin: | | 4.71 | % | 4.54 | % | 4.54 | % | 4.46 | % | 4.25 | %1 |
| | | | | | | | | | | | | | | | | |
1 Annualized
39.) Financial Highlights
($ millions, except per-share data)
| | Year-to-Date | | | |
| | 2006 | | 2005 | | Change | |
Net Interest Income | | $ | 131.2 | | $ | 129.1 | | 1.6 | % |
Fees & Other Revenue: | | | | | | | |
Banking | | 94.4 | | 88.2 | | 7.0 | |
Other | | 23.1 | | 18.5 | | 24.9 | |
Total Fees and Other Revenue | | 117.5 | | 106.7 | | 10.1 | |
Gains on Sales of Securities | | — | | 5.2 | | (100.0 | ) |
Total Non-Interest Income | | 117.5 | | 112.1 | | 4.8 | |
Total Revenue | | 248.7 | | 241.1 | | 3.2 | |
Provision for Credit Losses | | 1.5 | | (3.4 | ) | N.M. | |
Non-Interest Expense | | 159.9 | | 148.0 | | 8.0 | |
Net Income | | 58.2 | | 63.5 | | (8.3 | ) |
| | | | | | | |
Diluted EPS | | $ | .45 | | $ | .47 | | | |
ROA | | 1.71 | % | 2.03 | % | | |
ROE | | 23.82 | % | 27.18 | % | | |
ROTE1 | | 28.44 | % | 32.79 | % | | |
1 Excludes the impact of intangible amortization expense (see reconciliation slide in Appendix)
N.M. Not Meaningful.
40.) Power ProfitsSM
Average Balance ($ millions)
Profit center net income ($ 000s)
| | | | YTD 2006 | | | |
| | Balance | | Net Income | | % | |
Commercial Lending | | $ | 2,779 | | $ | 5,535 | | 9 | % |
Consumer Lending | | 5,251 | | 11,763 | | 20 | |
Leasing and Equipment Finance | | 1,533 | | 9,129 | | 16 | |
Total Power Assets® | | $ | 9,563 | | 26,427 | | 45 | |
| | | | | | | |
Traditional and Campus Branches (197) | | $ | 7,191 | | 18,873 | | 32 | |
Supermarket Branches (255) | | 1,980 | | 7,396 | | 13 | |
Total Power Liabilities® | | $ | 9,171 | | 26,269 | | 45 | |
Total Power Assets & Liabilities | | | | 52,696 | | 90 | |
Equity and other | | | | 5,526 | | 10 | |
Net Income | | | | $ | 58,222 | | 100 | % |
| | | | | | | | | | |
41.) Securities Available for Sale and Residential Loans
Ending Balance
($ millions)
| | 12/02 | | 12/03 | | 12/04 | | 12/05 | | 3/06 | |
| | | | | | | | | | | |
Securities Available for Sale | | $ | 2,354 | | $ | 1,524 | | $ | 1,622 | | $ | 1,682 | | $ | 1,875 | |
Residential Loans | | 1,800 | | 1,213 | | 1,014 | | 770 | | 733 | |
Total | | $ | 4,154 | | $ | 2,737 | | $ | 2,636 | | $ | 2,452 | | $ | 2,608 | |
| | | | | | | | | | | |
Yield:1 | | 6.25 | % | 5.55 | % | 5.29 | % | 5.46 | % | 5.46 | % |
% of Total Assets | | 34.1 | % | 24.2 | % | 21.4 | % | 18.3 | % | 18.9 | % |
1 Based on historical amortized cost
42.) Return to Stockholders1 + 18%*
| | | | SNL All Bank | | | |
Period Ending | | | TCF | | & Thrift Index | | S&P 500 | |
6/86 | | $ | 100.00 | | $ | 100.00 | | $ | 100.00 | |
3/87 | | $ | 114.03 | | $ | 116.90 | | $ | 122.03 | |
3/88 | | $ | 71.02 | | $ | 95.55 | | $ | 111.85 | |
3/89 | | $ | 83.69 | | $ | 116.13 | | $ | 132.15 | |
3/90 | | $ | 95.30 | | $ | 120.40 | | $ | 157.62 | |
3/91 | | $ | 118.86 | | $ | 127.18 | | $ | 180.33 | |
3/92 | | $ | 161.09 | | $ | 186.01 | | $ | 200.24 | |
3/93 | | $ | 278.25 | | $ | 250.20 | | $ | 230.74 | |
3/94 | | $ | 272.25 | | $ | 233.05 | | $ | 234.14 | |
3/95 | | $ | 395.48 | | $ | 254.92 | | $ | 270.59 | |
3/96 | | $ | 680.57 | | $ | 378.21 | | $ | 357.45 | |
3/97 | | $ | 758.58 | | $ | 505.12 | | $ | 428.31 | |
3/98 | | $ | 1,323.55 | | $ | 834.13 | | $ | 633.90 | |
3/99 | | $ | 1,042.41 | | $ | 829.82 | | $ | 750.92 | |
3/00 | | $ | 979.34 | | $ | 813.11 | | $ | 885.64 | |
3/01 | | $ | 1,598.12 | | $ | 923.93 | | $ | 693.66 | |
3/02 | | $ | 2,277.21 | | $ | 1,022.67 | | $ | 695.34 | |
3/03 | | $ | 1,778.44 | | $ | 874.59 | | $ | 523.17 | |
3/04 | | $ | 2,334.63 | | $ | 1,254.24 | | $ | 706.90 | |
3/05 | | $ | 2,550.07 | | $ | 1,261.13 | | $ | 754.21 | |
3/06 | | $ | 2,499.46 | | $ | 1,290.98 | | $ | 842.65 | |
| | | | | | | | | | | |
1 Assumes $100 invested June 18, 1986 with dividends reinvested
* Annualized return since June 18, 1986
Source: SNL Financial, LC and S&P
43.) Cautionary Statement
This presentation and other reports issued by the Company, including reports filed with the SEC, may contain “forward-looking” statements that deal with future results, plans or performance. In addition, TCF’s management may make such statements orally to the media, or to securities analysts, investors or others. Forward-looking statements deal with matters that do not relate strictly to historical facts. TCF’s future results may differ materially from historical performance and forward-looking statements about TCF’s expected financial results or other plans and are subject to a number of risks and uncertainties. These include but are not limited to possible legislative changes and adverse economic, business and competitive developments such as shrinking interest margins; deposit outflows; an inability to increase the number of 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 standards or interpretations of existing standards; monetary, fiscal or tax policies of the federal or state governments; adverse findings in tax audits or regulatory examinations; changes in credit and other risks posed by TCF’s loan, lease and investment portfolios, including declines in commercial or residential real estate values; imposition of vicarious liability on TCF as lessor in its leasing operations; denial of insurance coverage for claims made by TCF; technological, computer-related or operational difficulties or loss or theft of information; adverse changes in securities markets; and results of litigation, including reductions in card revenues resulting from litigation brought by various merchants or merchant organizations against Visa; or other significant uncertainties. Investors should consult TCF’s Annual Report on Form 10-K, and Forms 10-Q and 8-K for additional important information about the Company.
44.) NYSE: TCB
The Leader In Convenience Banking
Stock Price Performance | | | | | |
(In Dollars) | | | | | |
Year-Ending | | Stock Price | | Dividend Paid | |
12/95 | | $ | 8.28 | | $ | .15 | |
12/96 | | $ | 10.88 | | $ | .18 | |
12/97 | | $ | 16.97 | | $ | .23 | |
12/98 | | $ | 12.09 | | $ | .31 | |
12/99 | | $ | 12.44 | | $ | .36 | |
12/00 | | $ | 22.28 | | $ | .41 | |
12/01 | | $ | 23.99 | | $ | .50 | |
12/02 | | $ | 21.85 | | $ | .58 | |
12/03 | | $ | 25.68 | | $ | .65 | |
12/04 | | $ | 32.14 | | $ | .75 | |
12/05 | | $ | 27.14 | | $ | .85 | |
3/06 | | $ | 25.75 | | $ | .92 | * |
| | | | | | | | |
* Annualized
45.) Appendix
46.) Risk-Based Capital
($ millions)
| | 12/02 | | 12/03 | | 12/04 | | 12/05 | | 3/06 | |
| | | | | | | | | | | |
Actual | | $ | 851 | | $ | 842 | | $ | 959 | | $ | 1,050 | | $ | 1,111 | |
Minimum Requirement | | $ | 622 | | $ | 628 | | $ | 705 | | $ | 786 | | $ | 814 | |
Well Capitalized Requirement | | $ | 777 | | $ | 785 | | $ | 881 | | $ | 983 | | $ | 1,018 | |
| | | | | | | | | | | |
Tier 1: | | 9.96 | % | 9.75 | % | 9.12 | % | 8.79 | % | 8.36 | % |
Total: | | 10.95 | % | 10.73 | % | 10.88 | % | 10.68 | % | 10.91 | % |
Excess1: | | $ | 73.6 | | $ | 57.4 | | $ | 77.4 | | $ | 66.8 | | $ | 93.0 | |
1 Excess over “well-capitalized” requirement
47.) Net Charge-offs by Business Line
| | | | | | | | | | YTD1 | |
| | 2002 | | 2003 | | 2004 | | 2005 | | 2006 | |
| | | | | | | | | | | |
Consumer | | .15 | % | .10 | % | .08 | % | .11 | % | .11 | % |
Commercial real estate | | .12 | | .07 | | .02 | | — | | .01 | |
Commercial business | | 1.35 | | .18 | | .04 | | (.51 | ) | .14 | |
Leasing and equipment finance2 | | .80 | | .69 | | .43 | | 1.50 | | .22 | |
Residential real estate | | — | | .01 | % | .01 | | .01 | | .02 | |
Total | | .25 | | .16 | | .11 | | .25 | | .10 | |
1 Annualized
2 Excluding leveraged lease .18% for 2005
48.) Reconciliation of GAAP to Non-GAAP Measures1
| | For the Three | | For the Three | |
| | Months Ended | | Months Ended | |
| | March 31, 2006 | | March 31, 2005 | |
| | | | | |
Computation of Return on Equity (ROE): | | | | | |
Net income, as reported | | $ | 58,222 | | $ | 63,465 | |
Average stockholders’ equity, as reported | | $ | 977,585 | | $ | 934,063 | |
Return on equity | | 23.82 | % | 27.18 | % |
| | | | | |
Computation of Return on Tangible Equity (ROTE): | | | | | |
Net income | | $ | 58,222 | | $ | 63,465 | |
Amortization of deposit based intangibles, net of any related tax effect | | $ | 264 | | $ | 268 | |
Net income, adjusted | | $ | 58,486 | | $ | 63,733 | |
| | | | | |
Average stockholders’ equity | | $ | 977,585 | | $ | 934,063 | |
Average goodwill | | $ | 152,599 | | $ | 152,599 | |
Average deposit base intangible | | $ | 2,379 | | $ | 4,034 | |
Average tangible equity | | $ | 822,607 | | $ | 777,430 | |
| | | | | |
Return on tangible equity (ROTE) | | 28.44 | % | 32.79 | % |
1 In contrast to GAAP-basis measures, ROTE excludes the after-tax effect of goodwill and deposit base intangible assets both in the income statement and balance sheet. This allows management to review core operating results and core capital position of the Company. This is consistent with the treatment by bank regulatory agencies which exclude goodwill and deposit base intangible assets from their calculation of risk-based capital.
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).
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 and 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®
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.
Return on Average Tangible Common Equity (ROTE)
Annualized net income (excluding the after-tax effect of goodwill and deposit base intangible assets amortization) divided by average tangible common stockholders’ equity for the period.
Tangible Common Stockholders’ Equity
Common stockholders’ equity less goodwill and deposit base intangible assets.
