TCF Bank 2004 Annual Report Download - page 5

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2004 Annual Report 3
Leadership in Action
Dear Shareholders:
We are pleased to report that 2004 was a record year for TCF. Our
disciplined focus on long-term strategies for growth produced some
of the best performance ratios in the banking industry. TCF is clearly
a high performance bank.
Summarizing the year:
•TCF earned a record $255 million in 2004 compared to $215.9 million
in 2003. An increase of 18.1 percent.
•Diluted earnings per share (EPS) were $1.86 for 2004 compared to
$1.53 in 2003. An increase of 21.6 percent.
•TCF’s 2004 return on average assets (ROA) of 2.15 percent and
return on average equity (ROE) of 27.02 percent improved over the
previous year.
•TCF’s stock price closed at $32.14 on December 31, 2004, up 25 percent
from $25.68 per share on December 31, 2003. Our annualized total
return to investors over the past ten years was over 22 percent.
•Our dividend increased from $.65 per share in 2003 to $.75 per share
in 2004. In 2005, our dividend increased again and will be $.85 per
share. This is the fourteenth consecutive year we have increased the
dividend. We are proud that TCF has a ten-year compounded dividend
growth rate of 19.6 percent, the fifth highest dividend growth rate
among the 50 largest banks in the country.
The major factors impacting TCF’s performance in 2004 were as follows:
1. TCF’s net interest income resumed its growth in 2004. Net interest
income in 2004 was $491.9 million, up 2 percent from 2003. Most of
this improvement was due to balance sheet growth. TCF’s net inter-
est margin remained unchanged for 2004 at 4.54 percent. Short-
term interest rates rose over the year as a result of Federal Reserve
Board interest rate hikes. This rise in short-term rates helped TCF’s
net interest margin because interest rate sensitive assets exceed
variable-rate sensitive liabilities. The ten-year treasury rates
started and ended the year at about 4.25 percent. This resulted in