Exhibit 99.1
TCF Financial Corporation
First Quarter 2007 Investor Presentation
The leader in convenience banking
1.) Corporate Profile
At March 31, 2007
• $14.9 billion financial holding company headquartered in Minnesota
• 41st largest1 U.S. based bank by asset size
• 443 bank branches, 126 branches opened since January 1, 2002
• 25th largest branch network2
• 1,706 ATMs free to TCF customers; 1,200 off-site
• 13th largest issuer of VISA® Classic debit cards3
• 18th largest bank-owned equipment finance/leasing company in the U.S.4
• ROA 2.24%; ROE 31.81%; ROTE5 37.38%
• 2,406,725 deposit accounts
1 Source: CapitalBridge; 12/31/06
2 Source: SNL Financial, LC; 1Q07
3 Source: VISA; 4Q06; ranked by sales volume
4 Source: Equipment Leasing Association; 7/06
5 Excludes the impact of intangibles (see reconciliation slide in the appendix)
2.) Corporate Profile
• Bank branches located in seven states
| | At 3/31/07 | | At 1/1/02 | |
Traditional | | 190 | | 134 | |
Supermarket | | 241 | | 234 | |
Campus | | 12 | | 7 | |
Total | | 443 | | 375 | |
| | | | | |
| | At 3/31/07 | | At 1/1/02 | |
Minnesota | | 108 | | 88 | |
Illinois | | 196 | | 179 | |
Michigan | | 55 | | 57 | |
Colorado | | 44 | | 13 | |
Wisconsin | | 33 | | 33 | |
Indiana | | 6 | | 5 | |
Arizona | | 1 | | — | |
Total | | 443 | | 375 | |
3.) What Makes TCF Different
• Convenience
TCF banks a large and diverse customer base by offering a host of convenient banking services:
• Open seven days a week, 364 days/year
• Traditional, supermarket and campus branches
• 1,706 free ATMs
• Free debit cards
• No purchase-fee gift cards
• Free coin counting
• TCF® Totally Free Online banking
• De Novo Expansion
TCF is increasing its market share through de novo expansion:
• Opening new branches
• Arizona
• Starting new businesses
• Offering new products and services
4.) What Makes TCF Different
• Power Assets® and Power Liabilities®
Power Assets® (consumer loans, commercial real estate and business loans, and leasing and equipment finance)
and Power Liabilities® (checking, savings, money market and certificates of deposit accounts)
are growing and contribute a high percentage of TCF’s profits.
• Credit Quality
TCF is primarily a secured lender, emphasizing credit quality over asset growth.
5.) Share Repurchase Program
• Repurchased 1.1 million shares of common stock during the first quarter of 2007 at an average cost of $26.44 per share
• On April 14, 2007, the Board of Directors authorized a new stock repurchase program for the company to acquire up to five percent of TCF common stock, or an additional 6.5 million shares. TCF has a total of 8.2 million shares authorized under its stock repurchase programs.
6.) Return of Net Income to Stockholders
($ millions)
| | Net | | Dividends | | Stock | | | | % of Net | |
| | Income | | Paid | | Repurchase | | Total | | Income | |
| | | | | | | | | | | |
2003 | | $ | 215.9 | | $ | 93.0 | | $ | 150.4 | | $ | 243.4 | | 113 | % |
2004 | | 255.0 | | 104.0 | | 116.1 | | 220.1 | | 86 | |
2005 | | 265.1 | | 114.5 | | 93.5 | | 208.0 | | 78 | |
2006 | | 244.9 | | 121.4 | | 101.0 | | 222.4 | | 91 | |
20071 | | 82.7 | | 31.6 | | 28.0 | | 59.7 | | 72 | |
| | | | | | | | | | | |
Total | | $ | 1,063.6 | | $ | 464.5 | | $ | 489.0 | | $ | 953.6 | | 90 | % |
1 Year-to-date
7.) Consumer Home Equity Lending +12%*
($ millions)
| | 12/03 | | 12/04 | | 12/05 | | 12/06 | | 3/07 | |
| | | | | | | | | | | |
Total | | $ | 3,588 | | $ | 4,382 | | $ | 5,149 | | $ | 5,883 | | $ | 5,983 | |
| | | | | | | | | | | | | | | | |
* Twelve-month growth rate
8.) Consumer Home Equity Loans
At March 31, 2007
• 80% amortizing loans, 20% lines of credit
• 65% are 1st mortgages, 35% are 2nd mortgages
• 76% fixed rate and 24% variable rate (prime based)
• Average home value of $241,2231
• Yield 7.40%
• Over-30-day delinquency rate .46% 2
• Net charge-offs: 2007 = .22%³, 2006 = .13%, 2005 = .10%
• Average FICO score 721
1 Based on most recent appraisal values known to TCF
2 Excludes non-accrual loans
3 Annualized
9.) Commercial Lending
($ millions)
| | 12/03 | | 12/04 | | 12/05 | | 12/06 | | 3/07 | |
| | | | | | | | | | | |
Commercial Business | | $ | 429.4 | | $ | 436.7 | | $ | 435.2 | | $ | 552.0 | | $ | 561.4 | |
Commercial Real Estate | | 1,916.7 | | 2,154.4 | | 2,297.5 | | 2,390.7 | | 2,362.0 | |
| | | | | | | | | | | |
Total | | $ | 2,346 | | $ | 2,591 | | $ | 2,733 | | $ | 2,943 | | $ | 2,923 | |
10.) Commercial Loans
At March 31, 2007
• Commercial real estate
• 24% retail services
• 22% apartment loans
• 16% office buildings
• Commercial business — $561 million
• Yield 6.80%
• Over-30-day delinquency rate .17%1
• Net charge-offs/(recoveries): 2007 = .08%², 2006 = .02% , 2005 = (.08)%
• Approximately 98% of all commercial loans secured
• CRE location mix: 93% TCF Markets, 7% Other
1 Excludes non-accrual loans
2 Annualized
11.) Leasing and Equipment Finance 1 +18%*
($ millions)
| | 12/03 | | 12/04 | | 12/05 | | 12/06 | | 3/07 | |
| | | | | | | | | | | |
Leasing and Equipment Finance | | $ | 1,162 | | $ | 1,389 | | $ | 1,560 | | $ | 1,899 | | $ | 1,926 | |
| | | | | | | | | | | | | | | | |
1 Includes operating leases
* Twelve-month growth rate
12.) Leasing and Equipment Finance
At March 31, 2007
• 18th largest bank-owned equipment finance/leasing company in the U.S.1
• 37th largest equipment finance/leasing company in the U.S.2
• Equipment type
• 19% specialty vehicle
• 17% manufacturing
• 17% construction
• 15% medical
• 12% technology and data processing
• Yield 7.58%
• Originations: 2007 = $235 million, 2006 = $1.1 billion
• Uninstalled backlog of $279.5 million; up $29.8 million from year-end 2006
• Over-30-day delinquency rate .39% 3
• Net charge-offs/(recoveries): 2007 = (.18)%4, 2006 = .29%, 2005 = 1.50%5
1 Source: Equipment Leasing Association; 7/06
2 Source: Equipment Leasing Association; 6/06
3 Excludes non-accrual loans and leases
4 Annualized
5 Net charge-offs excluding leveraged lease were .18%
13.) Allowance for Loan & Lease Losses
($ millions)
| | 12/03 | | 12/04 | | 12/05 | | 12/06 | | 3/07 | |
| | | | | | | | | | | |
Allowance for Loan & Lease Losses | | $ | 72.5 | | $ | 75.4 | | $ | 55.8 | | $ | 58.5 | | $ | 60.5 | |
Net Charge-offs (NCO) | | $ | 19.6 | | $ | 17.5 | | $ | 28.2 | | $ | 18.0 | | $ | 2.7 | |
| | | | | | | | | | | |
As a % of Loans & Leases: | | | | | | | | | | | |
Allowance | | .87 | % | .80 | % | .55 | % | .52 | % | .53 | % |
NCO | | .24 | % | .20 | % | .29 | % | .17 | % | .10 | % 1 |
Coverage Ratio | | 3.7 | X | 4.3 | X | 2.0 | X | 3.3 | X | 5.6 | X 1 |
1 Annualized
14.) Delinquencies (Over 30-Day)1
(Percent)
($ millions)
| | 12/03 | | 12/04 | | 12/05 | | 12/06 | | 3/07 | |
| | | | | | | | | | | |
Delinquencies | | .47 | % | .37 | % | .43 | % | .63 | % | .41 | % |
| | | | | | | | | | | |
Delinquencies | | $ | 38.7 | | $ | 34.4 | | $ | 43.6 | | $ | 71.7 | | $ | 46.8 | |
| | | | | | | | | | | | | | | | |
1 Excludes non-accrual loans and leases
15.) Non-Performing Assets
($ millions)
| | 12/03 | | 12/04 | | 12/05 | | 12/06 | | 3/07 | |
| | | | | | | | | | | |
Non-Accrual Loans and Leases | | $ | 35.4 | | $ | 46.9 | | $ | 29.7 | | $ | 43.2 | | $ | 55.1 | |
Real Estate Owned | | 33.5 | | 17.2 | | 17.7 | | 22.4 | | 27.2 | |
Total | | $ | 68.9 | | $ | 64.1 | | $ | 47.4 | | $ | 65.6 | | $ | 82.3 | |
| | | | | | | | | | | |
Reserves/NAs: | | 205 | % | 161 | % | 188 | % | 136 | % | 110 | % |
NPAs/Assets: | | .61 | % | .52 | % | .35 | % | .45 | % | .55 | % |
16.) Total Deposits +6%*
Average Balances
($ millions)
| | 12/03 | | 12/04 | | 12/05 | | 12/06 | | 3/07 | |
| | | | | | | | | | | |
Certificates of Deposit | | $ | 1,744 | | $ | 1,494 | | $ | 1,740 | | $ | 2,291 | | $ | 2,514 | |
Money Market | | 887 | | 764 | | 641 | | 621 | | 610 | |
Savings | | 2,072 | | 1,936 | | 2,076 | | 2,306 | | 2,394 | |
Checking | | 3,073 | | 3,582 | | 4,023 | | 4,190 | | 4,219 | |
Total | | $ | 7,776 | | $ | 7,776 | | $ | 8,480 | | $ | 9,408 | | $ | 9,737 | |
| | | | | | | | | | | |
Average Rate: | | .73 | % | .55 | % | 1.15 | % | 2.08 | % | 2.38 | % |
| | | | | | | | | | | |
# of Deposit Accounts | | 2,150 | | 2,216 | | 2,296 | | 2,427 | | 2,407 | |
* Twelve-month growth rate
17.) Premier Checking & Savings Deposits + 25%*
Average Balances
($ 000s)
| | 12/31/04 | | 12/31/05 | | 12/31/06 | | 3/31/07 | |
| | | | | | | | | |
Premier Savings | | $ | 85 | | $ | 427 | | $ | 899 | | $ | 1,070 | |
Premier Checking | | 199 | | 642 | | 1,001 | | 1,074 | |
Total | | $ | 284 | | $ | 1,069 | | $ | 1,900 | | $ | 2,144 | |
| | | | | | | | | |
Average Rate: | | 1.61 | % | 2.73 | % | 3.62 | % | 3.69 | % |
| | | | | | | | | |
1-month LIBOR spread | | (.11 | ) | (.65 | ) | (1.48 | ) | (1.63 | ) |
* Twelve-month growth rate
18.) Banking Fees and Other Revenue¹
($ millions)
| | 2003 | | 2004 | | 2005 | | 2006 | | 2007 | |
| | | | | | | | | | | |
First Quarter | | $ | 82.1 | | $ | 87.7 | | $ | 88.2 | | $ | 94.4 | | $ | 96.2 | |
Second Quarter | | 92.8 | | 104.5 | | 100.1 | | 106.7 | | — | |
Third Quarter | | 94.3 | | 103.0 | | 104.7 | | 108.2 | | — | |
Fourth Quarter | | 90.6 | | 98.8 | | 100.9 | | 101.3 | | — | |
| | | | | | | | | | | |
Total | | $ | 360 | | $ | 394 | | $ | 394 | | $ | 411 | | $ | 96 | |
1 Consisting of fees and service charges, card revenue, ATM revenue, and investments and insurance revenue
19.) Card Revenue +9%*
($ millions)
| | 2003 | | 2004 | | 2005 | | 2006 | | 2007 | |
| | | | | | | | | | | |
First Quarter | | $ | 13.2 | | $ | 13.5 | | $ | 17.6 | | $ | 21.3 | | $ | 23.3 | |
Second Quarter | | 14.8 | | 16.0 | | 19.8 | | 22.9 | | — | |
Third Quarter | | 12.9 | | 16.3 | | 21.0 | | 24.4 | | — | |
Fourth Quarter | | 12.1 | | 17.7 | | 21.4 | | 23.5 | | — | |
| | | | | | | | | | | |
Total | | $ | 53.0 | | $ | 63.5 | | $ | 79.8 | | $ | 92.1 | | $ | 23.3 | |
| | | | | | | | | | | |
Sales Volume: | | $ | 3,899 | | $ | 4,735 | | $ | 5,673 | | $ | 6,465 | | $ | 1,657 | 1 |
| | | | | | | | | | | |
Avg. Off-line Interchange Rate: | | 1.43 | % | 1.40 | % | 1.43 | % | 1.45 | % | 1.43 | %1 |
* Year-to-date growth rate (‘07 vs. ‘06)
1 Year-to-date
20.) Card Revenue
• 13th largest issuer of VISA® Classic debit cards1
• 14th largest issuer of VISA® Commercial debit cards1
• 9.3% increase in sales volume 2
• Number of active accounts up 28,303, or 3.6%2, to 814,520
• 16.5 transactions per month on active cards, up 6.5% 2
1 Source: VISA; 4Q06; ranked by sales volume
2 1Q07 vs. 1Q06
21.) Small Business Checking and Money Market
($ millions)
| | 12/03 | | 12/04 | | 12/05 | | 12/06 | | 3/07 | |
| | | | | | | | | | | |
Small Business Checking Deposits | | $ | 461 | | $ | 546 | | $ | 607 | | $ | 614 | | $ | 588 | |
Money Market Deposits | | 1 | | 17 | | 89 | | 116 | | 136 | |
Total | | $ | 462 | | $ | 563 | | $ | 696 | | $ | 730 | | $ | 724 | |
| | | | | | | | | | | |
# of Accounts | | 102,607 | | 113,979 | | 124,145 | | 135,861 | | 135,249 | |
22.) Small Business Services and Products
At March 31, 2007
• $588 million in 0% interest checking account deposits
• Small business loans up to $500,000; small business adminstration loans up to $150,000
• 101,790 TCF Business Check CardsSM
• TCF Miles Plus Business Check CardSM loyalty program
• TCF Personal Pay Day® - employee benefit package (checking, savings, loan discounts, etc.) through participating businesses
23.) New Branch Expansion
24.) Total New Branches
Branches opened since January 1, 2002
| | | | | | | | | | | | | | 2007 | |
| | 12/02 | | 12/03 | | 12/04 | | 12/05 | | 12/06 | | 3/07 | | Forecast | |
| | | | | | | | | | | | | | | |
Supermarket Branches | | 15 | | 20 | | 31 | | 38 | | 43 | | 44 | | 49 | |
Traditional and Campus Branches | | 12 | | 26 | | 45 | | 66 | | 80 | | 82 | | 94 | |
Total | | 27 | | 46 | | 76 | | 104 | | 123 | | 126 | | 143 | |
| | | | | | | | | | | | | | | |
# of Branches Opened | | 27 | | 19 | | 30 | | 28 | | 19 | | 4 | | 20 | |
Percent of Total | | 7 | % | 11 | % | 18 | % | 23 | % | 27 | % | 28 | % | 31 | % |
25.) New Traditional Branch Model - - Net Income
($ 000s)
| | Year of Existence | |
| | 1 | | 2 | | 3 | | 4 | | 5 | | 6 | | 7 | | 8 | | 9 | | 10 | |
Net Income1 | | $ | (386 | ) | $ | (103 | ) | $ | (5 | ) | $ | 182 | | $ | 237 | | $ | 355 | | $ | 417 | | $ | 450 | | $ | 556 | | $ | 645 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Traditional branch capital expenditure $3.5 million
1 Includes deposits and consumer lending
26.) New Branch Total Deposits +28%*
Branches opened since January 1, 2002
($ millions)
| | 12/02 | | 12/03 | | 12/04 | | 12/05 | | 12/06 | | 3/07 | |
| | | | | | | | | | | | | |
Deposits | | $ | 45 | | $ | 116 | | $ | 287 | | $ | 782 | | $ | 1,076 | | $ | 1,159 | |
| | | | | | | | | | | | | | | | | | | |
* Twelve-month growth rate
27.) New Branch Total Deposit Accounts +37%*
Branches opened since January 1, 2002
(000s)
| | 12/02 | | 12/03 | | 12/04 | | 12/05 | | 12/06 | | 3/07 | |
| | | | | | | | | | | | | |
Deposit Accounts | | $ | 35 | | $ | 67 | | $ | 127 | | $ | 200 | | $ | 290 | | $ | 313 | |
| | | | | | | | | | | | | | | | | | | |
* Twelve-month growth rate
28.) New Branch Banking Fees & Other Revenue1 +29%*
Branches opened since January 1, 2002
($ millions)
| | 2002 | | 2003 | | 2004 | | 2005 | | 2006 | | 2007 | |
| | | | | | | | | | | | | |
First Quarter | | — | | $ | 1.0 | | $ | 3.4 | | $ | 7.6 | | $ | 11.6 | | $ | 15.0 | |
Second Quarter | | .1 | | 1.6 | | 6.1 | | 9.9 | | 14.2 | | — | |
Third Quarter | | .3 | | 2.1 | | 7.0 | | 10.9 | | 14.8 | | — | |
Fourth Quarter | | .7 | | 2.5 | | 7.6 | | 11.3 | | 14.2 | | — | |
| | | | | | | | | | | | | |
Total | | $ | 1.1 | | $ | 7.2 | | $ | 24.1 | | $ | 39.7 | | $ | 54.8 | | $ | 15.0 | |
| | | | | | | | | | | | | | | | | | | |
1 Consisting of fees and service charges, card revenue, ATM revenue, and investments and insurance revenue
* Twelve-month growth rate
29.) Campus Banking
At March 31, 2007
• Alliances with the University of Minnesota, the University of Michigan and the University of Illinois plus eight other colleges including DePaul University in Chicago, Milwaukee Area Technical College, Northern Michigan University and Eastern Michigan University
• Multi-purpose campus card serves as a school identification card, ATM card, library card, security card, health care card, phone card, stored value card for vending machines, laundry, etc.
• Ranked 6th largest in number of campus card banking relationships in the U.S.1
• 104,137 total deposit accounts
• $187.7 million in total deposits
1 Source: CR80News 2006 Banking Partner Survey
30.) New Products and Services
• TCF Power CheckingSM
• TCF® Visa® Gift Cards
• Merchant Gift Cards
• TCF MILES PLUSSM Card Loyalty Programs
• Premier (Retail)
• Small Business
• Western Union Money Transfers
• Electronic Statement Delivery
• TCF Express Check Conversion
• TCF Express Remote Deposit
• Medical Equipment Leasing
31.) Financial Highlights
32.) Dividend History
| | 1997 | | 1998 | | 1999 | | 2000 | | 2001 | | 2002 | | 2003 | | 2004 | | 2005 | | 2006 | | 2007 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Dividends Paid | | $ | .23 | | $ | .31 | | $ | .36 | | $ | .41 | | $ | .50 | | $ | .58 | | $ | .65 | | $ | .75 | | $ | .85 | | $ | .92 | | .2425 | 2 |
| | | | | | | | | | | | | | | | | | | | | | | |
Dividend Payout Ratio: | | 28 | % | 35 | % | 36 | % | 35 | % | 37 | % | 37 | % | 43 | % | 40 | % | 43 | % | 48 | % | 37 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
10-year compounded annual growth rate of 17% is the 7th highest among the 50 largest banks in the country 1
1 Source: CapitalBridge
2 Year-to-date
33.) Financial Highlights
($ millions, except per-share data)
| | Year-to-Date | | | | | |
| | 2007 | | 2006 | | Change | | | |
Net Interest Income | | $ | 135.5 | | $ | 131.2 | | 3.3 | % | | |
Fees & Other Revenue: | | | | | | | | | |
Banking | | 96.2 | | 94.4 | | 1.9 | | | |
Other | | 15.9 | | 20.2 | | (21.3 | ) | | |
Total Fees and Other Revenue | | 112.1 | | 114.6 | | (2.2 | ) | | |
Gain on Sales of Branches and Real Estate | | 31.2 | | 2.9 | | N.M. | | | |
Total Non-Interest Income | | 143.3 | | 117.5 | | 22.0 | | | |
Total Revenue | | 278.8 | | 248.7 | | 12.1 | | | |
Provision for Credit Losses | | 4.7 | | 1.2 | | N.M. | | | |
Non-Interest Expense | | 164.2 | | 160.3 | | 2.4 | | | |
Net Income | | 82.7 | | 58.2 | | 42.1 | | | |
| | | | | | | | | |
Diluted EPS | | $ | .65 | | $ | .45 | | | | | | | |
ROA | | 2.24 | % | 1.71 | % | | | | |
ROE | | 31.81 | % | 23.82 | % | | | | |
ROTE1 | | 37.38 | % | 28.44 | % | | | | |
| | | | | | | | | | | | | |
1 Excludes the impact of intangibles (see reconciliation slide in the appendix)
34.) Significant Financial Items
($ 000s)
| | Year-to-Date | | | |
| | 2007 | | 2006 | | Change | |
Branch Sales | | $ | 31,173 | | $ | — | | $ | 31,173 | |
Land and Building Sales | | — | | 2,928 | | (2,928 | ) |
Sale of Mortgage Servicing Rights | | — | | 1,601 | | (1,601 | ) |
Total Asset Sale Gains | | 31,173 | | 4,529 | | 26,644 | |
| | | | | | | |
Total, pre-tax | | $ | 31,173 | | $ | 4,529 | | $ | 26,644 | |
| | | | | | | |
Income Tax Expense Reductions | | 8,469 | | — | | 8,469 | |
| | | | | | | |
Total, after-tax | | $ | 53,862 | | $ | 55,199 | | $ | (1,337 | ) |
| | | | | | | |
Impact on Diluted EPS | | $ | .23 | | $ | .02 | | $ | .21 | |
35.) Michigan Branch Sales
• 10 branches sold; transaction completed on March 23, 2007
• $241 million in total deposits
• Sales Price-11.5% plus real estate
• Pre-tax gain on sale - $31.2 million, or 16 cents per diluted share after tax
36.) Power ProfitsSM
Average Balance ($ millions)
Profit center net income ($ 000s)
| | | | YTD 2007 | | | |
| | Balance | | Net Income | | % | |
Commercial Banking | | $ | 2,932 | | $ | 6,198 | | 8 | % |
Consumer Lending | | 5,960 | | 9,925 | | 12 | |
Leasing and Equipment Finance | | 1,838 | | 8,828 | | 11 | |
Total Power Assets® | | $ | 10,730 | | 24,951 | | 31 | |
| | | | | | | |
Traditional and Campus Branches (202) | | 7,348 | | 16,009 | | 19 | |
Supermarket Branches (241) | | 2,168 | | 7,313 | | 9 | |
Michigan Branches Sold (10) | | 221 | | 20,688 | | 25 | |
Total Power Liabilities® | | $ | 9,737 | | 44,010 | | 53 | |
Total Power Assets & Liabilities | | | | 68,961 | | 84 | |
Equity and Other | | | | 13,763 | | 16 | |
Net Income | | | | $ | 82,724 | | 100 | % |
37.) Return to Stockholders1 +17%*
| | | | SNL All | | | |
Period Ending | | TCF | | Bank & Thrift | | S&P 500 | |
6/86 | | $ | 100.00 | | $ | 100.00 | | $ | 100.00 | |
3/87 | | $ | 114.03 | | $ | 116.90 | | $ | 122.03 | |
3/88 | | $ | 71.02 | | $ | 95.55 | | $ | 111.85 | |
3/89 | | $ | 83.69 | | $ | 116.13 | | $ | 132.15 | |
3/90 | | $ | 95.30 | | $ | 120.40 | | $ | 157.62 | |
3/91 | | $ | 118.86 | | $ | 127.18 | | $ | 180.33 | |
3/92 | | $ | 161.09 | | $ | 186.01 | | $ | 200.24 | |
3/93 | | $ | 278.25 | | $ | 250.20 | | $ | 230.74 | |
3/94 | | $ | 272.25 | | $ | 233.05 | | $ | 234.14 | |
3/95 | | $ | 395.48 | | $ | 254.92 | | $ | 270.59 | |
3/96 | | $ | 680.57 | | $ | 378.21 | | $ | 357.55 | |
3/97 | | $ | 758.58 | | $ | 505.12 | | $ | 428.31 | |
3/98 | | $ | 1,323.55 | | $ | 834.13 | | $ | 633.90 | |
3/99 | | $ | 1,042.41 | | $ | 829.82 | | $ | 750.92 | |
3/00 | | $ | 979.34 | | $ | 813.11 | | $ | 885.64 | |
3/01 | | $ | 1,598.12 | | $ | 923.93 | | $ | 693.66 | |
3/02 | | $ | 2,277.21 | | $ | 1,022.67 | | $ | 695.34 | |
3/03 | | $ | 1,778.44 | | $ | 874.59 | | $ | 523.17 | |
3/04 | | $ | 2,334.63 | | $ | 1,254.24 | | $ | 706.90 | |
3/05 | | $ | 2,550.07 | | $ | 1,261.13 | | $ | 754.21 | |
3/06 | | $ | 2,499.46 | | $ | 1,290.98 | | $ | 842.65 | |
3/07 | | $ | 2,651.80 | | $ | 1,417.50 | | $ | 942.34 | |
1 Assumes $100 invested June 18, 1986 with dividends reinvested
* Annualized return since June 18, 1986
Source: SNL Financial, LC and S&P
38.) Cautionary Statement
This presentation and other reports issued by the Company, including reports filed with the SEC, may contain “forward-looking” statements that deal with future results, plans or performance. In addition, TCF’s management may make such statements orally to the media, or to securities analysts, investors or others. Forward-looking statements deal with matters that do not relate strictly to historical facts. TCF’s future results may differ materially from historical performance and forward-looking statements about TCF’s expected financial results or other plans and are subject to a number of risks and uncertainties. These include but are not limited to possible legislative changes and adverse economic, business and competitive developments such as shrinking interest margins; deposit outflows; an inability to increase the number of deposit accounts and the possibility that deposit account losses (fraudulent checks, etc.) may increase; impact of legal, legislative or other changes affecting customer account charges and fee income; reduced demand for financial services and loan and lease products; adverse developments affecting TCF’s supermarket banking relationships or any of the supermarket chains in which TCF maintains supermarket branches; changes in accounting standards or interpretations of existing standards; monetary, fiscal or tax policies of the federal or state governments; including adoption of state legislation that would increase state taxes, adoption of proposed federal legislation reducing interest subsidies and other benefits available to TCF in its education lending programs; adverse findings in tax audits or regulatory examinations; changes in credit and other risks posed by TCF’s loan, lease and investment portfolios, including declines in commercial or residential real estate values or changes in allowance for loan and lease losses methodology dictated by new regulatory requirements; imposition of vicarious liability on TCF as lessor in its leasing operations; denial of insurance coverage for claims made by TCF; technological, computer-related or operational difficulties or loss or theft of information; adverse changes in securities markets; and results of litigation, including reductions in card revenues resulting from litigation brought by various merchants or merchant organizations against Visa; or other significant uncertainties. Investors should consult TCF’s Annual Report on Form 10-K, and Forms 10-Q and 8-K for additional important information about the Company.
39.) NYSE: TCB
The Leader In Convenience Banking
Stock Price Performance
(In Dollars)
Year Ending | | Stock Price | | Dividends Paid | |
12/97 | | | $ | 16.97 | | $ | .23 | |
12/98 | | | $ | 12.09 | | $ | .31 | |
12/99 | | | $ | 12.44 | | $ | .36 | |
12/00 | | | $ | 22.28 | | $ | .41 | |
12/01 | | | $ | 23.99 | | $ | .50 | |
12/02 | | | $ | 21.85 | | $ | .58 | |
12/03 | | | $ | 25.68 | | $ | .65 | |
12/04 | | | $ | 32.14 | | $ | .75 | |
12/05 | | | $ | 27.14 | | $ | .85 | |
12/06 | | | $ | 27.42 | | $ | .92 | |
3/07 | | | $ | 26.36 | | $ | .97 | * |
* Annualized
40.) Appendix
41.) Diluted EPS
| | 1997 | | 1998 | | 1999 | | 2000 | | 2001 | | 2002 | | 2003 | | 2004 | | 2005 | | 2006 | | 20071 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Diluted EPS | | $ | .84 | | $ | .88 | | $ | 1.00 | | $ | 1.17 | | $ | 1.35 | | $ | 1.58 | | $ | 1.53 | | $ | 1.86 | | $ | 2.00 | | $ | 1.90 | | $ | .65 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1 Year-to-date
42.) Net Income
($ millions)
| | 2003 | | 2004 | | 2005 | | 2006 | | 20071 | |
| | | | | | | | | | | |
First Quarter | | $ | 60.1 | | $ | 60.7 | | $ | 63.5 | | $ | 58.2 | | $ | 82.7 | |
Second Quarter | | 60.3 | | 65.2 | | 70.6 | | 67.1 | | — | |
Third Quarter | | 36.0 | | 61.7 | | 65.5 | | 65.9 | | — | |
Fourth Quarter | | 59.5 | | 67.4 | | 65.5 | | 53.7 | | — | |
| | | | | | | | | | | |
Total | | $ | 216 | | $ | 255 | | $ | 265 | | $ | 245 | | $ | 83 | |
1 Year-to-date
43.) Net Interest Income
($ millions)
| | 2003 | | 2004 | | 2005 | | 2006 | | 2007 | |
| | | | | | | | | | | |
First Quarter | | $ | 122.4 | | $ | 118.4 | | $ | 129.1 | | $ | 131.2 | | $ | 135.5 | |
Second Quarter | | 119.8 | | 122.4 | | 131.3 | | 135.4 | | — | |
Third Quarter | | 119.9 | | 124.5 | | 128.1 | | 135.0 | | — | |
Fourth Quarter | | 119.1 | | 126.5 | | 129.3 | | 135.9 | | — | |
| | | | | | | | | | | |
Total | | $ | 481 | | $ | 492 | | $ | 518 | | $ | 538 | | $ | 136 | |
| | | | | | | | | | | |
Net Interest Margin: | | 4.54 | % | 4.54 | % | 4.46 | % | 4.16 | % | 4.00 | % 1 |
1 Year-to-date (annualized)
44.) Risk-Based Capital
($ millions)
| | 12/03 | | 12/04 | | 12/05 | | 12/06 | | 3/07 | |
| | | | | | | | | | | |
Actual | | $ | 842 | | $ | 959 | | $ | 1,050 | | $ | 1,173 | | $ | 1,201 | |
Well Capitalized Requirement | | $ | 785 | | $ | 881 | | $ | 983 | | $ | 1,057 | | $ | 1,065 | |
| | | | | | | | | | | |
Tier 1: | | 9.75 | % | 9.12 | % | 8.79 | % | 8.65 | % | 8.83 | % |
Total: | | 10.73 | % | 10.88 | % | 10.68 | % | 11.10 | % | 11.28 | % |
Target (10.6%): | | $ | 824 | | $ | 934 | | $ | 1,042 | | $ | 1,120 | | $ | 1,129 | |
Excess RBC: | | $ | 57 | | $ | 77 | | $ | 67 | | $ | 116 | | $ | 136 | |
Excess Over Target: | | $ | 18 | | $ | 25 | | $ | 8 | | $ | 53 | | $ | 73 | |
45.) One Year Interest Rate Gap
($ millions)
| | 12/03 | | 12/04 | | 12/05 | | 12/06 | | 3/07 | |
Adjusted Gap | | $ | 161 | | $ | 585 | | $ | 318 | | $ | (630 | ) | $ | (518 | ) |
| | | | | | | | | | | |
% of Total Assets | | 1.0 | % | 4.7 | % | 2.4 | % | (4.3 | )% | (3.5 | )% |
| | | | | | | | | | | | | | | | |
46.) Power Asset Geographic Profile
($ millions)
| | | | Commercial | | | | | |
| | Consumer | | Real Estate | | Leasing & | | | |
| | Home Equity | | & Commercial | | Equipment | | | |
At March 31, 2007: | | & Other | | Business | | Finance | | Total | |
Minnesota | | $ | 2,327 | | $ | 776 | | $ | 69 | | $ | 3,172 | |
Illinois | | 1,819 | | 621 | | 63 | | 2,503 | |
Michigan | | 1,053 | | 843 | | 85 | | 1,981 | |
Wisconsin | | 499 | | 419 | | 38 | | 956 | |
Colorado | | 279 | | 34 | | 34 | | 347 | |
California | | 2 | | 18 | | 246 | | 266 | |
Florida | | 7 | | 36 | | 140 | | 183 | |
Texas | | 1 | | 2 | | 108 | | 111 | |
Arizona | | 9 | | 15 | | 78 | | 102 | |
Indiana | | 19 | | 19 | | 31 | | 69 | |
Other | | 27 | | 140 | | 958 | | 1,125 | |
Total | | $ | 6,042 | | $ | 2,923 | | $ | 1,850 | | $ | 10,815 | |
47.) Consumer Home Equity and Commercial Loans
Quarterly Average Balances
($ millions)
| | | | | | Change | |
| | | | | | Inc./(Dec.) | |
| | 3/31/07 | | 3/31/06 | | $ | | % | |
Consumer Home Equity: | | | | | | | | | |
Variable-rate | | $ | 1,443 | | $ | 1,866 | | $ | (423 | ) | (23 | )% |
Yield | | 8.83 | % | 8.20 | % | 63 | bps | | |
| | | | | | | | | |
Fixed-rate | | $ | 4,476 | | $ | 3,350 | | $ | 1,126 | | 34 | % |
Yield | | 6.95 | % | 6.72 | % | 23 | bps | | |
| | | | | | | | | |
Commercial: | | | | | | | | | |
Variable-rate | | $ | 1,036 | | $ | 1,094 | | $ | (58 | ) | (5 | )% |
Yield | | 7.64 | % | 7.08 | % | 56 | bps | | |
| | | | | | | | | |
Fixed- and adjustable-rate | | $ | 1,896 | | $ | 1,685 | | $ | 211 | | 13 | % |
Yield | | 6.38 | % | 6.18 | % | 20 | bps | | |
48.) Customer Payment Activity
Transaction Volume
(millions)
| | | | | | % Increase/ | |
| | 2007 1 | | 2006 1 | | Decrease | |
Checks | | 20.4 | | 24.2 | | (15.8 | )% |
ACH | | 10.2 | | 8.4 | | 21.6 | % |
ATM | | 7.7 | | 8.1 | | (5.0 | )% |
Debit Card Purchases | | 45.6 | | 41.5 | | 9.8 | % |
1 Year-to-Date 1Q07 vs. 1Q06
49.) Net Charge-Offs by Business Line
| | | | | | | | | | YTD1 | |
| | 2003 | | 2004 | | 2005 | | 2006 | | 2007 | |
Consumer home equity | | .11 | % | .09 | % | .10 | % | .13 | % | .22 | % |
Total Consumer | | .30 | | .28 | | .19 | | .22 | | .20 | |
Commercial real estate | | .07 | | .02 | | — | | .01 | | .07 | |
Commercial business | | .18 | | .04 | | (.51 | ) | .09 | | .11 | |
Leasing and equipment finance | | .69 | | .43 | | 1.50 | 2 | .29 | | (.18 | ) 2 |
Residential real estate | | .01 | | .01 | | .01 | | .04 | | .02 | |
Total | | .24 | | .20 | | .29 | | .17 | | .10 | |
1 Annualized
2 NCO’s excluding leveraged lease were .18% for 2005
50.) Reconciliation of GAAP to Non-GAAP Measures1
($ 000s)
| | Year-to-Date | |
| | 2007 | | | 2006 | |
Computation of Return on Equity (ROE): | | | | | | |
Net income, as reported | | $ | 82,724 | | | $ | 58,222 | |
Average stockholders’ equity, as reported | | $ | 1,040,212 | | | $ | 977,585 | |
| | | | | | |
Return on equity | | 31.81 | % | | 23.82 | % |
| | | | | | |
Computation of Return on Tangible Equity (ROTE): | | | | | | |
Net income | | $ | 82,724 | | | $ | 58,222 | |
Amortization of deposit based intangibles, net of any related tax effect | | 155 | | | 264 | |
Net income, adjusted | | $ | 82,879 | | | $ | 58,486 | |
| | | | | | |
Average stockholders’ equity | | $ | 1,040,212 | | | $ | 977,585 | |
Average goodwill | | 152,599 | | | 152,599 | |
Average deposit base intangible | | 836 | | | 2,379 | |
Average tangible equity | | $ | 886,777 | | | $ | 822,607 | |
| | | | | | |
Return on tangible equity (ROTE) | | 37.38 | % | | 28.44 | % |
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 gains/losses on sales of securities, gains on sales of branches and real estate, gains/losses on termination of debt, title insurance revenues (a business sold in 1999) and certain 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®
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.
