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TCF FINANCIAL CORP
8-K, 2000-11-03
NATIONAL COMMERCIAL BANKS

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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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FORM 8-K
CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): November 3, 2000

TCF Financial Corporation

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(Exact name of registrant as specified in its charter)

Delaware

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(State or other jurisdiction of incorporation

801 Marquette Avenue, Mail Code EX0-03-A, Minneapolis, Minnesota 55402

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(Address of principal executive offices)

(612) 661-6500

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(Registrant's Telephone Number)

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Item 9.  Regulation FD Disclosure

    Pursuant to Regulation FD, information is being furnished below with respect to presentations to investors or others that may be made by Mr. William A. Cooper, Chairman and Chief Executive Officer, or other senior officers. This information includes selected financial and operational information through the second quarter of 2000 and does not represent a complete set of financial statements and related footnotes prepared in conformity with generally accepted accounting principles (GAAP). Most, but not all, of the selected financial information furnished herein is derived from the Company's consolidated financial statements and related footnotes prepared in accordance with GAAP and management's discussion and analysis included in the Company's reports on Form 10-K and 10-Q. The Company's annual financial statements are subject to independent audit. Certain financial information has not been prepared in accordance with GAAP. Please refer to the glossary of financial terms at the end of these materials for a definition of the basis of presentation of such information.

    The presentation is also available on the company's website at www.tcfexpress.com. TCF Financial Corporation's Annual Report to Shareholders and its reports on Forms 10-K, 10-Q and 8-K and other publicly available information should be consulted for other important information about the company.

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TCF Financial Corporation
Reflecting on a
Decade of Progress

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 1.)  Corporate Profile

    At June 30, 2000

•

$10.9 billion bank headquartered in Minneapolis, 49th largest* in the U.S.



•

Businesses include: retail banking, consumer and commercial lending, commercial leasing, mortgage banking, ATMs, and annuity and mutual fund sales



•

Initial public offering June 1986



•

Repurchased 12.5 million shares since January 1998—13% of shares outstanding (net of reissued)



•

Repurchased 1.6 million shares YTD 2000 (net of reissued)

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*

Source: Keefe, Bruyette & Woods, Inc., June 30, 2000

 2.)  Corporate Profile

    At June 30, 2000

•

Bank branches located in five mid-western states

 3.)  Corporate Philosophy

•

Generate top-line revenue growth



•

de novo/geographic expansion



•

development of new products/services




•

Focus on middle and lower income customers



•

Provide convenient financial services through multiple channels



•

Emphasize Power Business Lines that create and grow Power Assets® and Power Liabilities®

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 4.)  TCF Growth Strategies

Traditional Branches   Commercial Lending   Consumer Lending   Mortgage Lending   ATMs		Supermarket Banking   Supermarket Consumer Lending   Debit Cards   Leasing & Equipment Finance   Internet Banking   Campus Banking   Small Business Banking		New Card Products   Discount Brokerage   Upscale Customer Banking   Small Business Lending   Debt Waiver   Insurance Products
Core Business		Emerging Business		Strategic Initiatives

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 5.)  Where We Have Been...

Core
Business

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 6.)  Retail Distribution Growth

+7%*

			Dec-91		Dec-92		Dec-93		Dec-94		Dec-95		Dec-96		Dec-97		Dec-98		Dec-99		Jun-00
Supermarket Branches			20		20		27		27		38		48		63		160		195		207
Traditional Branches			58		60		106		106		147		148		158		151		143		140
	Total		78		80		133		133		185		196		221		311		338		347

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*

Twelve-month growth rate

 7.)  Commercial Lending

+24%*

			Dec-91		Dec-92		Dec-93		Dec-94		Dec-95		Dec-96		Dec-97		Dec-98		Dec-99		Jun-00
			($ millions) As originally reported
Commercial Business			87.4		78.4		89.4		100.4		167.9		157.1		240.2		289.1		351.4		365.8
Commercial Real Estate			729.1		676.8		687.2		634.8		967.8		858.2		859.9		811.4		1,073.5		1,192.0
	Total		816.5		755.2		776.6		735.2		1,135.7		1,015.3		1,100.1		1,100.5		1,424.9		1,557.8

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*

Twelve-month growth rate

 8.)  Commercial Loans

    As of 6/30/00 or YTD annualized

•

Commercial Real Estate—$1,192 million, 23% apartment loans



•

Commercial Business—$366 million



•

Five national shared loans—$40 million



•

Yield 8.55%



•

Over-30-day delinquency rate .08%



•

Net recovery .08%



•

CRE location mix 89% Midwest,11% Other



•

Approximately 96% secured

 9.)  Consumer Home Equity Lending

+16%*

			Dec-91		Dec-92		Dec-93		Dec-94		Dec-95		Dec-96		Dec-97		Dec-98		Dec-99		Jun-00
			($ million) As originally reported
80% or less			N/A		N/A		N/A		N/A		N/A		N/A		N/A		970.2		949.0		956.8
Over 80-90%			N/A		N/A		N/A		N/A		N/A		N/A		N/A		453.5		570.6		614.0
Over 90-100%			N/A		N/A		N/A		N/A		N/A		N/A		N/A		48.5		398.9		456.3
Over 100%			N/A		N/A		N/A		N/A		N/A		N/A		N/A		54.0		56.5		49.2
	Total		654.2		722.2		759.2		875.4		1,113.0		1,294.0		1,520.0		1,526.2		1,975.0		2,076.3

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*

Twelve-month growth rate

N/A Not available

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10.)  Consumer Home Equity Loans

    As of 6/30/00 or YTD annualized

•

Consumer home equity loans and lines of credit 49% variable rate and 51% fixed rate



•

69% are closed-end loans



•

Yield 9.98%



•

Over-30-day delinquency rate .89%



•

Net charge-offs .13%



•

Average current loan to value 81%



•

Average FICO score 690



•

Average debt to income 33%

11.)  Debit Card and ATM Revenue Growth

+19%*

			1991		1992		1993		1994		1995		1996		1997		1998		1999		2000
			($ millions)
First Quarter			3.1		3.0		3.2		3.9		4.1		4.9		6.3		10.1		14.4		17.4
Second Quarter			3.0		3.3		3.4		4.0		4.6		5.1		7.3		12.6		16.9		19.9
Third Quarter			2.9		3.2		3.5		4.1		5.0		5.5		8.4		13.5		18.0
Fourth Quarter			2.8		3.2		3.5		4.1		4.7		6.0		8.8		14.3		17.8
	Total		11.8		12.7		13.6		16.1		18.4		21.5		30.8		50.5		67.1		37.3

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*

YTD EFT revenue growth rate ('00 vs. '99)

12.)  ATMs

    June 2000

•

1,381 ATMs in Midwest: 371 on-site, 1,010 off-site, 6th largest among banks*



•

3.5 million transactions per month at TCF ATMs (41% non-TCF deposit customers)



•

1.1 million TCF customer transactions per month at non-TCF ATMs



•

1.2 million ATM cards outstanding of which 1 million are debit cards

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*

American Banker, December 6, 1999

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13.)  Where We Are...

Emerging
Business

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14.)  Supermarket—Deposit Growth

+35%*

		Dec-91		Dec-92		Dec-93		Dec-94		Dec-95		Dec-96		Dec-97		Dec-98		Dec-99		Jun-00
Deposits ($ millions)		85		100		198		215		267		304		379		618		826		972
Number of Supermarket Branches		20		20		27		27		38		48		63		160		195		207

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*

Twelve-month deposit growth rate

15.)  Supermarket Banking

    June 30, 2000

•

4th largest supermarket branch franchise in America* with 207 branches



•

2.35% average rate on deposits



•

160 new branches in last three years



•

47 "mature" branches opened more than three years



•

Average mature branch has $10 million in deposits and earns an estimated $250 thousand per year in profit**

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*

SNL Securities

**

Based on 2Q00 earnings

16.)  Supermarket—Fee Income Growth

+33%*

			1991		1992		1993		1994		1995		1996		1997		1998		1999		2000
			($ millions) As originally reported
First Quarter			N/A		N/A		N/A		N/A		N/A		N/A		N/A		8.8		17.4		23.3
Second Quarter			N/A		N/A		N/A		N/A		N/A		N/A		N/A		13.2		21.6		28.5
Third Quarter			N/A		N/A		N/A		N/A		N/A		N/A		N/A		14.7		23.1
Fourth Quarter			N/A		N/A		N/A		N/A		N/A		N/A		N/A		16.8		24.6
	Total		2.9		4.4		9.5		12.0		14.1		16.3		22.1		53.5		86.7		51.8

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*

YTD supermarket fee income growth rate ('00 vs. '99)

N/A Not available

17.)  Chicagoland Expansion (Map)

    TCF National Bank Illinois

*

Traditional and Cub Branches

**

Jewel Branches

    Lake Michigan

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18.)  Supermarket Consumer Loans

+38%*

		12/95		12/96		12/97		12/98		12/99		Jun-00
Consumer Loans ($ millions)		68		75		88		108		193		213

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*

Twelve-month loan growth rate

19.)  Debit Cards

+56%*

			Debit Card Revenue
			Dec-96		Dec-97		Dec-98		Dec-99		Jun-00
			($ million)
First Quarter					.3		1.9		3.5		6.0
Second Quarter					.7		2.7		4.8		7.1
Third Quarter					1.1		3.0		5.3
Fourth Quarter					1.6		3.5		5.9
	Total				3.7		11.1		19.5		13.1
(000's) # of Cards			3		602		774		929		1,008

•

14th largest U.S. Visa debit card issuer**



•

4.2 million transactions per month

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*

YTD revenue growth rate ('00 vs. '99)

**

Source: Visa, at June 30, 2000

20.)  Leasing and Equipment Finance

+64%*

		Dec-96		Dec-97		Dec-98		Dec-99		Jun-00
		($ millions) As originally reported
Total Loans and Leases		0		369		399		493		656

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*

Twelve-month loan/lease growth rate

21.)  Leasing and Equipment Finance

    June 30, 2000

•

Purchased Winthrop Resources Corporation—specializing in business-equipment leasing in June 1997



•

Launched TCF Leasing, Inc.—specializing in general equipment leasing in September 1999



•

Backlog increased by 54% since year-end to $192.9 million



•

46 sales representatives covering the U.S.



•

Over 30-day delinquency rate .37%



•

YTD net charge-offs .49%

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22.)  On-Line Banking Accounts

		05/00		06/00		07/00		08/00
Number of Accounts		3,800		8,300		12,500		16,300

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23.)  Where We Are Going...

Strategic
Initiatives

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24.)  TCF Express Phone Card

•

Launched in February 2000



•

Customers earn free long-distance minutes from MCI WorldCom every time they make a purchase totaling $10 or more using their free TCF Check Cards



•

Increased activation and usage rate on debit cards



•

Additional free service to customers

25.)  TCF CommandLine Card

•

Launched card in September 1999



•

Targeted to new and existing credit line customers



•

Higher-yielding product—Power Assets®



•

Contributes to EFT revenues



•

Taps unused credit lines

26.)  Money Manager Preferred Account

•

Designed to meet needs of high-end customers



•

Competitive money market interest rates



•

Money Manager Preferred Card acts like a credit card rather than a traditional debit card



•

Purchases are accumulated throughout the month and posted at one time



•

Increased fee revenues



•

Piloted in Illinois, full roll-out expected later in 2000

27.)  New Businesses

•

Discount Brokerage



•

De novo



•

Cross selling and account growth opportunities



•

Expanded fee income generation



•

Launch date in early 2001




•

Upscale Customers



•

Debit card enhancements



•

Credit lines for brokerage services

28.)  New Businesses

•

Small Business Lending



•

Loans up to $150,000




•

Debt Waiver



•

Piloted in Colorado and Michigan



•

Another source of fee revenue




•

Insurance Products



•

Single premium life insurance product



•

Begin selling summer 2000

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29.)  How We Are Doing...

Financial
Highlights

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30.)  Financial Highlights

31.)  Power Profits

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*

Profit center cash net income ($ in thousands)

32.)  Diluted EPS Growth

+17%*

				1991		1992		1993**		1994		1995**		1996***		1997		1998		1999		2000
				As originally reported ($)
First Quarter				0.14		0.20		0.20		0.25		0.27		0.36		0.40		0.43		0.44		0.51
Second Quarter				0.14		0.22		0.24		0.28		0.32		0.37		0.42		0.45		0.49		0.59
Third Quarter				0.16		0.25		0.24		0.31		0.34		0.38		0.43		0.42		0.52
Fourth Quarter				0.17		0.31		0.24		0.32		0.35		0.39		0.43		0.46		0.55
	Total			.61		.99		.92		1.16		1.29		1.51		1.69		1.76		2.00		1.10
Cash EPS				.84		1.07		.95		1.18		1.31		1.53		1.73		1.88		2.10		1.14

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*

YTD EPS growth rate ('00 vs. '99)

**

Before merger-related charges

***

Before FDIC special assessment

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33.)  Net Income

+12%*

				1991		1992		1993**		1994		1995**		1996***		1997		1998		1999		2000
				As originally reported ($ millions)
First Quarter				4.3		8.1		9.8		12.2		20.2		26.3		33.0		39.9		37.3		40.7
Second Quarter				4.5		9.0		11.9		13.9		23.4		26.7		34.9		40.2		41.0		46.7
Third Quarter				4.9		9.9		12.1		15.5		24.4		27.0		37.2		36.6		42.8
Fourth Quarter				5.3		12.6		12.1		15.8		25.5		27.4		39.9		39.5		45.0
	Total			19.0		39.6		45.9		57.4		93.5		107.4		145.0		156.2		166.1		87.4
Cash Net Income				26		43		48		59		95		109		149		167		174		91

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*

YTD net income growth rate ('00 vs. '99)

**

Before merger-related charges

***

Before FDIC special assessment

34.)  Net Interest Income

				1991		1992		1993		1994		1995		1996		1997		1998		1999		2000
				($ millions) As originally reported
First Quarter				27.8		31.4		44.3		45.7		75.6		84.5		90.1		109.2		104.8		106.8
Second Quarter				29.4		35.3		47.1		49.6		79.3		85.9		92.6		107.3		106.7		110.2
Third Quarter				29.7		35.1		46.7		54.5		81.5		85.8		99.9		104.6		106.6
Fourth Quarter				29.8		37.2		46.3		55.3		82.8		84.0		111.0		104.7		106.1
	Total			116.7		139.0		184.4		205.1		319.2		340.2		393.6		425.8		424.2		217.0

35.)  Fees and Other Revenues

+17%*

				1991		1992		1993		1994		1995		1996		1997		1998		1999		2000
				($ millions) As originally reported
First Quarter				16.7		19.4		23.1		24.6		27.3		30.9		41.0		53.3		63.9		73.0
Second Quarter				19.4		20.6		25.3		25.4		29.1		33.5		45.8		58.5		68.4		82.4
Third Quarter				17.7		20.3		27.7		26.6		30.7		34.8		50.2		66.0		72.1
Fourth Quarter				19.4		20.2		27.5		26.0		32.7		36.8		51.6		64.7		74.8
	Total			73.2		80.5		103.6		102.6		119.8		136.0		188.6		242.5		279.2		155.4

3.05% of Average Assets in 2Q00
42% of Total Revenues YTD 2000

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*

YTD revenue growth rate ('00 vs. '99)

36.)  Net Charge-Offs

		1996		1997		1998		1999		YTD 2000
Net Charge-offs ($ millions)		15.9		17.9		25.9		26.4		1.1
Net Charge-offs (Excluding Auto) ($ millions)		6		4.1		6.1		5.2
NPAs/Loans & Leases		.89	%	.84	%	.69	%	.45	%	.41	%

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37.)  Number of Checking Accounts

+11%*

				Dec-92		Dec-93		Dec-94		Dec-95		Dec-96		Dec-97		Dec-98		Dec-99		Jun-00
				(000s) As originally reported
Bank Branches				337		439		443		527		546		605		614		630		641
Free Small Business Checking												8		23		39		53		60
Supermarket Branches				51		71		83		95		115		144		260		361		401
	Total			388		510		526		622		669		772		913		1,044		1,102
Rate				.81	%	.65	%	.65	%	.51	%	.45	%	.45	%	.22	%	.21	%	.23	%

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*

Twelve-month checking account growth rate

38.)  Fee Revenue Per Retail Checking Account

		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000*
As originally reported ($)		106		115		114		109		111		118		124		143		168		175

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*

YTD annualized 6/30/00

39.)  TCF vs. Top 50 Banks*

    YTD 6/30/00

		TCF		Top 50 Banks Average
ROA		1.63	%	1.26	%

		TCF		Top 50 Banks Average
ROCE		22.1	%	16.5	%

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*

Represents the fifty largest banks in the U.S. based on asset size at 6/30/00

Source: Keefe, Bruyette & Woods Securities, SNL Securities, Bigcharts.com and Yahoo.com

40.)  TCF vs. Top 50 Banks*

    6/30/00

		TCF		Top 50 Banks Average
YTD Net Interest Margin		4.35	%	3.81	%

		TCF		Top 50 Banks Average
Price**/LTM Diluted EPS		13.6x		16.3x

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*

Represents the fifty largest banks in the U.S. based on asset size at 6/30/00

**

Price at 7/31/00

Source: Keefe, Bruyette & Woods Securities, SNL Securities, Bigcharts.com and Yahoo.com

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41.)  Cautionary Statement

    This investor presentation contains "forward-looking" statements, such as TCF's philosophy. 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; reduced demand for financial services and loan and lease products; changes in accounting policies and guidelines, or monetary and fiscal policies of the federal government; changes in credit and other risks posed by TCF's loan, lease and investment portfolios; technological, computer-related or operational difficulties; adverse changes in securities markets; results of litigation or other significant uncertainties. The investor presentation provides data as of the end of the second quarter 2000 (June 30, 2000). From time-to-time, we may add additional information, but the financial information will generally be updated only quarterly, and thus the data will not disclose current quarter information.

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42.)

NYSE: TCB

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Glossary of Financial Terms

Cash Net Income

    Net income excluding goodwill charges (on an after-tax basis).

Cash Earnings Per Common Share (Cash EPS)

    Cash Net Income available to common shareholders divided by weighted average common and common equivalent shares outstanding during the period (diluted Cash EPS).

Cash Return on Average Assets (Cash ROA)

    Annualized Cash Net Income divided by average total assets for the period.

Cash Return on Average Realized Common Equity (Cash ROE)

    Annualized Cash Net Income divided by average common stockholders' equity for the period, excluding accumulated other comprehensive income (loss).

Fees and Other Revenues

    Non-interest income excluding title insurance revenues (a business sold in 1999) and gains or 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.

Profit Center Cash Net Income

    Cash Net Income for specific profit divisions as determined for management reporting purposes including all allocations and transfer-pricing conventions deemed appropriate/reasonable by management and subject to modification over time.

Return on Average Assets (ROA)

    Annualized net income divided by average total assets for the period.

Return on Average Realized Common Equity (RORE)

    Annualized net income divided by average common stockholders' equity for the period, excluding accumulated other comprehensive income (loss).

Top-Line Revenue

    Net interest income plus Fees and Other Revenues.

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SIGNATURE

    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: November 3, 2000

		TCF FINANCIAL CORPORATION
		By		/s/ NEIL W. BROWN    Neil W. Brown
		Its		Executive Vice President, Chief Financial Officer and Treasurer

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