2 q10 specialty finance book

216 views

Published on

finance

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
216
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Date of Original Request: 05/07/09 Request: Add footnote to tangible common equity Requested by: Financial Reporting Approval(s) from: WAC, NWB, TFJ Status: 5/7/09 – Received request from Financial Reporting. Received approval from J. Kalies. 5/11/09 – NWB did not approve the change.
  • Date of Original Request: 08/01/08 Request: Change 6/08 data from YTD to QTD Requested by: William Cooper Approval(s) from: WAC, NWB, TFJ Status: 8/1/08 – Received request from William Cooper. 8/5/08 – Received data from Financial Reporting. Provided slide to J. Gutierrez for approval. Received approval from J. Gutierrez. Provided slide to WAC, NWB, and TFJ for approval. Provided slide to DMS and JTG for Form 8-K recommendation. Received approval from WAC and NWB. 8/8/08 – A Form 8-K does not need to be filed, per JTG. 8/12/08 – Per DMS, revise slide using quarter-to-data data for all time periods. 8/13/08 – Received data from Financial Reporting. Provided slide to TFJ and DMS for review. 8/14/08 – received approval from DMS. 8/15/08 - Provided slide to WAC, NWB, and TFJ for approval. Provided slide to DMS and JTG for Form 8-K recommendation.
  • Date of Original Request: 08/01/08 Request: Change 6/08 data from YTD to QTD Requested by: William Cooper Approval(s) from: WAC, NWB, TFJ Status: 8/1/08 – Received request from William Cooper. 8/5/08 – Received data from Financial Reporting. Provided slide to J. Gutierrez for approval. Received approval from J. Gutierrez. Provided slide to WAC, NWB, and TFJ for approval. Provided slide to DMS and JTG for Form 8-K recommendation. Received approval from WAC and NWB. 8/8/08 – A Form 8-K does not need to be filed, per JTG. 8/12/08 – Per DMS, revise slide using quarter-to-data data for all time periods. 8/13/08 – Received data from Financial Reporting. Provided slide to TFJ and DMS for review. 8/14/08 – received approval from DMS. 8/15/08 - Provided slide to WAC, NWB, and TFJ for approval. Provided slide to DMS and JTG for Form 8-K recommendation.
  • Date of Original Request: 7/29/09 Request: Add a TCF Inventory Finance portfolio slide Requested by: Neil Brown and Tom Jasper Approval(s) from: WAC, NWB, TFJ Status: 7/29/09 – received request form NWB/TFJ. 7/30/09 – Received data from Financial Reporting. Received approval from Financial Reporting. Provided slide to DMS for review. 8/3/09 – Received comments from DMS. Provided slide to TFJ for review. 8/5/09 – Received approval from TFJ. 8/6/09 – Provided slide to WAC, NWB, TFJ, DMS and JTG for final approval. Received approval and incorporated comments from NWB. 8/7/09 – Received comments from WAC (breakout by industry). 8/10/09 – Received breakout by industry from Financial Reporting.
  • Source: SNL Financial LC
  • 2 q10 specialty finance book

    1. 1. Overview of TCF Financial Corporation’s Specialty Finance Group
    2. 2. Index <ul><li>Page </li></ul><ul><li>Supplemental Public Information 2-14 </li></ul><ul><li>TCFEF Vision Statement & Value Proposition 15 </li></ul><ul><li>TCFEF Executive Team – Individual Profiles 16 </li></ul>
    3. 3. <ul><li>$18 billion financial holding company headquartered in Minnesota </li></ul><ul><ul><li>34 th largest publicly traded U.S. based </li></ul></ul><ul><ul><li>bank by asset size </li></ul></ul><ul><li>441 bank branches in eight states, 70 </li></ul><ul><li>branches opened since January 1, 2005 </li></ul><ul><ul><li>24 th largest U.S. branch network </li></ul></ul><ul><ul><li>Eight campus alliances; 5 th largest in </li></ul></ul><ul><ul><li>campus card banking relationships </li></ul></ul><ul><li>At July 7, 2010, 982 ATMs free to TCF customers; </li></ul><ul><li>496 off-site </li></ul><ul><li>10 th largest issuer of Visa ® Classic debit cards </li></ul><ul><li>12 th largest issuer of Visa Commercial debit cards </li></ul><ul><li>13 th largest bank-affiliated leasing company in the U.S. </li></ul><ul><li>Total equity to total assets of 8.18% </li></ul><ul><li>Tangible realized common equity of 7.18% 1 </li></ul><ul><li>61 st consecutive quarter of profitability </li></ul>Corporate Profile At June 30, 2010 1 36 7 110 26 56 200 5 ($ millions) 4% 50% 25% 21% At 12/31/99 76% 18% 6% 1 See “Reconciliation of GAAP to Non-GAAP Measures” slide At 6/30/10 2 Well-Diversified Loan Portfolio
    4. 4. What Makes TCF Different <ul><li>Convenience </li></ul><ul><ul><li>TCF banks a large and diverse customer base by offering a host of convenient banking services: </li></ul></ul><ul><ul><ul><li>Traditional, supermarket and campus branches open seven days a week </li></ul></ul></ul><ul><ul><ul><li>Free debit cards, free coin counting and 982 free ATMs at July 7, 2010 </li></ul></ul></ul><ul><ul><ul><li>TCF Free Online banking </li></ul></ul></ul><ul><li>Credit Quality </li></ul><ul><ul><li>TCF is primarily a secured portfolio lender, emphasizing credit quality over asset growth </li></ul></ul><ul><li>Core deposit funding for national diverse lending platform </li></ul><ul><ul><li>Grew core deposits by $805.9 million year-over-year; decreased total certificate of deposit balances by $901.9 million year-over-year </li></ul></ul><ul><ul><li>Grew nationally-oriented specialty finance businesses by $664.4 million year-over-year </li></ul></ul>At June 30, 2010 3
    5. 5. <ul><li>No teaser rate or subprime lending programs </li></ul><ul><li>No option ARM loans </li></ul><ul><li>No asset-backed commercial paper </li></ul><ul><li>No Freddie Mac or Fannie Mae preferred stock </li></ul><ul><li>No non-agency mortgage-backed securities </li></ul><ul><li>No off-balance-sheet funding or securitizations </li></ul><ul><li>No auto lease portfolio </li></ul><ul><li>No bank-owned life insurance </li></ul><ul><li>No structured investment vehicles (SIVs) </li></ul><ul><li>No mortgage servicing rights </li></ul><ul><li>No brokered deposits </li></ul>What Makes TCF Different (continued) 4
    6. 6. Diversified Revenue Base ($ millions) ($ millions) (Percent) TCF 4.18% KBW Regional Banking Index Median 3.71% 2 56% 21% 6% 17% * Twelve-month growth rate 1 Year-to-date 2 As of March 31, 2010 At June 30, 2010 +5%* 5 Good Revenue Growth Strong Net Interest Margin Non-interest Income Net Interest Income Strong Mix of Fee Revenues 1
    7. 7. Strong Deposit Franchise Quarterly Average Balances ($ millions) Average Rate 1 : 2.33% 2.29% 1.51% .74% .56% 1 Quarter-to-date (annualized) 6
    8. 8. Significant Liquidity & Borrowing Capacity <ul><li>TCF has unused, secured borrowing capacity from the following sources: </li></ul><ul><ul><li>Federal Home Loan Bank of Des Moines – $2.2 billion </li></ul></ul><ul><ul><li>Federal Reserve Discount Window – $591 million </li></ul></ul>At June 30, 2010 7
    9. 9. Capital Ratios 1 See “Reconciliation of GAAP to Non-GAAP Measures” slide ($ millions) At June 30, 2010 <ul><li>Other Capital Ratios </li></ul><ul><ul><li>Total equity to total assets – 8.18% </li></ul></ul><ul><ul><li>Tier 1 common capital – 9.38% </li></ul></ul><ul><ul><li>Tier 1 risk-based capital – 10.30% </li></ul></ul><ul><ul><li>Total risk-based capital – 12.71% </li></ul></ul>1 8
    10. 10. Stable Loan Growth +5%* * Twelve-month growth rate ($ millions) Diverse Products and Geographies 9
    11. 11. Leasing & Equipment Finance 1 * Twelve-month growth rate 1 Includes operating leases ($92.5 million at June 30, 2010) 2 Excludes non-accrual loans and leases 3 Annualized ($ millions) At June 30, 2010 <ul><li>13 th largest bank-affiliated leasing company in the U.S. </li></ul><ul><li>29 th largest equipment finance/leasing company in the U.S. </li></ul><ul><li>Diverse equipment types </li></ul><ul><ul><li>19% specialty vehicles </li></ul></ul><ul><ul><li>14% manufacturing </li></ul></ul><ul><ul><li>14% medical </li></ul></ul><ul><ul><li>12% construction </li></ul></ul><ul><li>6.54% average yield </li></ul><ul><li>Uninstalled backlog of $348 million </li></ul><ul><li>Unguaranteed residuals of only $110.2 million, or 3.7% of loans and leases </li></ul><ul><li>Over 60-day delinquency rate .23% 2 </li></ul><ul><li>Net charge-offs: 2010 2009 2008 </li></ul><ul><li>.93% 3 .97% .50% </li></ul>Growth Opportunities Still Exist +8%* 10
    12. 12. Leasing and Equipment Finance Portfolio 11 ($000’s) 12/31/09 12/31/08 Change Specialty vehicles $ 540,847 $ 499,519 $ 41,328 Manufacturing 469,291 406,532 62,759 Medical 446,340 356,706 89,634 Construction 416,518 453,542 (37,024) Technology and data processing <ul><ul><li>379,971 </li></ul></ul><ul><ul><li>259,696 </li></ul></ul>120,275 Golf cart and turf 181,546 59,823 121,723 Furniture and fixtures 178,571 61,443 117,128 Printing 81,467 77,939 3,528 Exercise equipment 73,221 21,231 51,990 Operating leases 105,899 58,759 47,140 Other $ 303,657 $ 289,651 $ 14,006 Total $ 3,177,328 $ 2,544,841 $ 632,487
    13. 13. TCF Inventory Finance ($ millions) $157.2 $224.8 $468.8 $644.2 At June 30, 2010 <ul><li>Inventory floorplan finance business with a focus on lawn and garden products, consumer electronics, and household appliances </li></ul><ul><li>Operates primarily in the U.S. with a presence in Canada </li></ul><ul><li>239 employees </li></ul><ul><li>100% variable rate receivables </li></ul><ul><li>Average yield 7.38% </li></ul><ul><li>Net charge-offs: 2010 2009 </li></ul><ul><li>.16% 1 .10% </li></ul><ul><li>Credit support from equipment manufacturers </li></ul><ul><li>Credit risk spread across 8,489 active dealers </li></ul>Experienced and Seasoned Management 1 Annualized $700.4 12
    14. 14. Credit Trends (Percent) 1.02% 1.04% .72% .81% .82% 1.43% 1.52% 1.35% 1.22% .54% .60% .60% .69% 1 1 Annualized .82% 1.30% .87% 13
    15. 15. 1 As a percent of average loans & leases 2 YTD as of March 31, 2010 (annualized) (Percent) Net Charge-Offs 1 vs. Other Banks Bank of America TCF US Bancorp KeyCorp Wells Fargo TCF NCOs: .16% .29% .78% 1.34% 1.22% 2 JPMorgan Chase PNC 14
    16. 16. 15
    17. 17. 16 16

    ×