TCF Bank 2003 Annual Report Download - page 6

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4TCF Financial Corporation and Subsidiaries
3. Recognizing that the assets financed by our borrowings had run-off, we prepaid $954 million of high cost fixed-rate
borrowings at a cost of $44.3 million ($.41 EPS). This action hurt 2003 earnings but allowed us to reduce our cost
of funds in future periods.
4. Over 50 percent of TCF’s $5 billion mortgage servicing portfolio prepaid in 2003, resulting in amortization and
provision for impairment expense of $44.8 million in 2003. Increased gains on sales of mortgage loans and
mortgage-backed securities offset this expense.
5. The unplanned VISA®debit card litigation settlement reduced TCF’s interchange revenues by approximately $6 million
in 2003. Although TCF was not a party to this litigation, the settlement adversely impacted our results.
POWER ASSETS®and POWER LIABILITIES®On a more positive note, TCF experienced strong growth in its core businesses
in 2003. Power Assets grew $814.4 million, or 13 percent, despite the economic uncertainties present in 2003. TCF’s
consumer loans increased $624.5 million, or 21 percent. Commercial loans increased $68.5 million, or three percent.
Leasing and Equipment Finance increased $121.4 million, or 12 percent. All of these areas are well poised for future
growth in 2004.
TCF Check Card
Interchange Revenue
(millions of dollars)
03
$53.0
$47.2
$37.6
$28.8
$19.5
02010099
Retail Distribution Growth
(number of branches)
Traditional Supermarket
03
401
395
375
352
338
02010099
Net Interest Income
(millions of dollars)
03
$481
$499
$481
$439
$424
02010099