Tcf Financial Corporation - PowerPoint by aaq20251

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									      Overview of



TCF Financial Corporation’s

Specialty Finance Group
   Index

                                               Page
 Supplemental Public Information              2-14


 TCFEF Vision Statement & Value Proposition    15


 TCFEF Executive Team – Individual Profiles    16
         Corporate Profile
    At June 30, 2010                                                                                110
                                                                                                1         26
    $18 billion financial holding company                                                                      56
     headquartered in Minnesota                                                                           200 5
                                                                                     36
      • 34th largest publicly traded U.S. based
                                                                               7
        bank by asset size
    441 bank branches in eight states, 70
     branches opened since January 1, 2005
      • 24th largest U.S. branch network
      • Eight campus alliances; 5th largest in                      Well-Diversified Loan Portfolio
        campus card banking relationships                     ($ millions)                                              Commercial
    At July 7, 2010, 982 ATMs free to TCF customers;                               Consumer
                                                                                     Lending
                                                                                                                          Lending
                                                                                                                           $3,706
     496 off-site                                                                     $7,289
                                     ®                                                                            25%
    10th largest issuer of Visa Classic debit cards
    12th largest issuer of Visa Commercial debit cards                                             50%
                                                            At 12/31/99                                                 4%     Inventory
                                                                               Commercial                                    Finance $645
    13th largest bank-affiliated leasing company in                            Lending
                                                                                                                  21%
     the U.S.                                                                    $1,425
                                                                                                                            Leasing
                                                                             18%      Leasing                                $3,000
    Total equity to total assets of 8.18%                                             $493
                                                                               6%
    Tangible realized common equity of 7.18%1                                                                 At 6/30/10
                                                                   76%
    61st consecutive quarter of profitability         Consumer
                                                        Lending
                                                         $5,978
         1   See “Reconciliation of GAAP to Non-GAAP
             Measures” slide
                                                                                                                                        2
What Makes TCF Different
                                                                            At June 30, 2010
 Convenience
   • TCF banks a large and diverse customer base by offering a host of convenient
     banking services:
       – Traditional, supermarket and campus branches open seven days a week

       – Free debit cards, free coin counting and 982 free ATMs at July 7, 2010

       – TCF Free Online banking



 Credit Quality
   • TCF is primarily a secured portfolio lender, emphasizing credit quality over asset
     growth


 Core deposit funding for national diverse lending platform
   • Grew core deposits by $805.9 million year-over-year; decreased total certificate of
     deposit balances by $901.9 million year-over-year
   • Grew nationally-oriented specialty finance businesses by $664.4 million
     year-over-year


                                                                                               3
What Makes TCF Different                        (continued)
 No teaser rate or subprime lending programs
 No option ARM loans
 No asset-backed commercial paper
 No Freddie Mac or Fannie Mae preferred stock
 No non-agency mortgage-backed securities
 No off-balance-sheet funding or securitizations
 No auto lease portfolio
 No bank-owned life insurance
 No structured investment vehicles (SIVs)
 No mortgage servicing rights
 No brokered deposits


                                                              4
 Diversified Revenue Base
                                                                                                                  At June 30, 2010
                  Good Revenue Growth                                                Strong Mix of Fee Revenues1
($ millions)                                                                ($ millions)
                                                       +5%*
 1,250                                       $1,159
                       $1,092     $1,092
             $1,027
 1,000
                                   $498        $526
              $489      $542
      750                                               $610                       Banking Fees
                                                                                    and Service
      500                                               $259                       Charges $144
              $538      $550       $594        $633
      250
                                                        $351
                                                                                                      56%
        0
              12/06     12/07      12/08       12/09    6/10                                                                    Card Revenue
                                                                                                                      21%            $56
            Net Interest Income          Non-interest Income

               Strong Net Interest Margin
                                                                                                                17%
(Percent)                                                                                             6%
 4.50                                                                                      Other $1                 Specialty
                                                                                                                  Finance $43
                                                                TCF 4.18%                         ATM Revenue
 4.00                                                                                                 $15

                                                                KBW Regional Banking
 3.50                                                           Index Median 3.71%2


 3.00
        2006          2007        2008        2009       2010
  *   Twelve-month growth rate
  1   Year-to-date
  2   As of March 31, 2010
                                                                                                                                               5
  Strong Deposit Franchise
                                              Certificates of Deposit
   Quarterly Average Balances
                                              Money Market
   ($ millions)                               Savings
    14,000                                    Checking

    12,000                                                              $11,386   $11,729

                     $9,527           $9,482          $9,849
    10,000

       8,000

       6,000

       4,000

       2,000

             0
                      12/06           12/07           12/08              12/09     6/10

Average Rate1:        2.33%           2.29%            1.51%              .74%     .56%



   1   Quarter-to-date (annualized)
                                                                                            6
Significant Liquidity & Borrowing Capacity
                                               At June 30, 2010

  TCF has unused, secured borrowing capacity from the
   following sources:

     Federal Home Loan Bank of Des Moines – $2.2 billion


     Federal Reserve Discount Window – $591 million




                                                                  7
        Capital Ratios
($ millions)                                                                                At June 30, 2010

                   Tangible Realized Common Equity
                   Tangible Realized Common Equity Ratio1
1,400
                                                        $1,284      Other Capital Ratios
1,200                                                                   Total equity to total assets – 8.18%
                                               $1,040
                        $964        $996
1,000       $915                                                        Tier 1 common capital – 9.38%

 800                                                                    Tier 1 risk-based capital – 10.30%
                                                        7.18%
        6.30%          6.09%       6.01%       5.86%
 600                                                                    Total risk-based capital – 12.71%
 400

 200

   0
        12/06          12/07       12/08       12/09        6/10



        1   See “Reconciliation of GAAP to Non-GAAP
            Measures” slide
                                                                                                                8
    Stable Loan Growth                                                               +5%*
($ millions)                          Diverse Products and
                                          Geographies
                     Consumer Lending                        Commercial Lending
                     Leasing and Equipment Finance           Inventory Finance
      16,000                                                                      $14,640
                                                                   $14,591
      14,000                                     $13,346
                                       $12,494
      12,000         $11,478

      10,000

       8,000

       6,000
       4,000
       2,000

              0
                       12/06            12/07        12/08          12/09          6/10

       *   Twelve-month growth rate
                                                                                            9
    Leasing & Equipment Finance1
($ millions)            Growth Opportunities Still Exist
                                                                                                At June 30, 2010

                                                                        13th largest bank-affiliated leasing company
4,000                                                                    in the U.S.
                                                   +8%*
                                                                        29th largest equipment finance/leasing
                                          $3,177                         company in the U.S.
                                                    $3,093
3,000                                                                   Diverse equipment types
                                $2,545
                                                                           • 19% specialty vehicles
                                                                           • 14% manufacturing
                     $2,175
                                                                           • 14% medical
2,000       $1,899
                                                                           • 12% construction
                                                                        6.54% average yield
                                                                        Uninstalled backlog of $348 million
1,000                                                                   Unguaranteed residuals of only $110.2 million,
                                                                         or 3.7% of loans and leases
                                                                        Over 60-day delinquency rate .23%2
   0                                                                    Net charge-offs: 2010 2009 2008
            12/06     12/07     12/08     12/09      6/10                                  .93%3 .97% .50%
        *   Twelve-month growth rate
        1   Includes operating leases ($92.5 million at June 30, 2010)
        2   Excludes non-accrual loans and leases
        3   Annualized
                                                                                                                          10
        Leasing and Equipment Finance Portfolio
($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       379,971       259,696     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
                                                                 11
    TCF Inventory Finance
($ millions)                    Experienced and Seasoned                                 At June 30, 2010
                                      Management

                                                               Inventory floorplan finance business with a
                     Electronics & Appliances                   focus on lawn and garden products,
                                                                consumer electronics, and household
  800                Lawn & Garden                              appliances
                                          $700.4
  700                                              $644.2      Operates primarily in the U.S. with a
                                                                presence in Canada
  600
                                                               239 employees
  500                            $468.8
                                                               100% variable rate receivables
  400
                                                               Average yield 7.38%
  300
                     $224.8                                    Net charge-offs: 2010      2009
  200       $157.2
                                                                                .16%1     .10%
                                                               Credit support from equipment
  100
                                                                manufacturers
    0                                                          Credit risk spread across 8,489 active
             6/09        9/09     12/09    3/10     6/10
                                                                dealers
        1   Annualized
                                                                                                              12
  Credit Trends
(Percent)

 2.00              Net Charge-offs
                                     1


 1.75              Over 60-day Delinquencies
                                                 1.52%
                                         1.43%
 1.50                                                    1.35%           1.30%
                                                                 1.22%
 1.25                        1.04%
                   1.02%
 1.00       .82%                                  .81%           .82%    .87%
                                         .72%             .69%
 0.75               .60%      .60%
            .54%
 0.50

 0.25

 0.00
            9/08   12/08      3/09       6/09    9/09    12/09   3/10     6/10



    1 Annualized

                                                                                 13
     Net Charge-Offs1 vs. Other Banks
    (Percent)
   5.00
                                                                         JPMorgan Chase
                                                                         Bank of America
   4.00
                                                                         KeyCorp

   3.00
                                                                         Wells Fargo
                                                                         US Bancorp
   2.00
                                                                         PNC
                                                                         TCF
   1.00


   0.00
                                                                             2
                    2006              2007             2008   2009    2010
TCF NCOs:          .16%               .29%             .78%   1.34%   1.22%

          1   As a percent of average loans & leases
          2   YTD as of March 31, 2010 (annualized)
                                                                                           14
15
16   16

								
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