TCF Bank 2003 Annual Report Download - page 43

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2003 Annual Report 41
Of TCF’s 401 branches, 228, or 57%, were newly opened since January 1, 1998. Additional information regarding TCF’s branches opened since
January 1, 1998 is displayed in the table below:
At or For the Year Ended December 31, Compound Annual Growth Rate
1-Year 5-Year
(Dollars in thousands) 2003 2002 2001 2000 1999 2003/2002 2003/1998
Number of new branches opened during the year
Traditional . . . . . . . . . . . . . . . . . . . . . . . . . . 14 12631N.M. N.M.
Supermarket . . . . . . . . . . . . . . . . . . . . . . . . 515 21 22 34 N.M. N.M.
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 27 27 25 35 N.M. N.M.
Number of new branches*at year-end
Traditional . . . . . . . . . . . . . . . . . . . . . . . . . 42 28 16 10 7 N.M. N.M.
Supermarket . . . . . . . . . . . . . . . . . . . . . . . . 186 184 174 153 133 N.M. N.M.
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228 212 190 163 140 N.M. N.M.
Percent of total branches . . . . . . . 56.9% 53.7% 50.7% 46.3% 41.4% N.M. N.M.
Number of checking accounts . . . . . . . . . . . . . . 480,371 396,266 327,792 239,052 180,230 21.2% 39.5%
Deposits:
Checking . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 616,539 $ 447,914 $ 335,198 $ 236,633 $ 140,880 37.6 50.7
Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . 390,253 407,088 133,987 63,764 49,863 (4.1) 65.7
Money market . . . . . . . . . . . . . . . . . . . . . . . 66,604 70,476 91,092 68,504 13,729 (5.5) 46.8
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . 1,073,396 925,478 560,277 368,901 204,472 16.0 54.9
Certificates . . . . . . . . . . . . . . . . . . . . . . . . . . 152,050 162,655 184,020 225,401 139,116 (6.5) 16.9
Total deposits . . . . . . . . . . . . . . . . . . . . $1,225,446 $1,088,133 $ 744,297 $ 594,302 $ 343,588 12.6 45.2
Total fees and other revenue for the year . . . . . . $ 126,123 $ 107,769 $ 85,333 $ 60,750 $ 39,164 17.0 54.4
N.M. Not meaningful.
* New branches opened since January 1, 1998.
Deposits Checking, savings and money market deposits are an
important source of low cost funds and fee income for TCF. Deposits
totaled $7.6 billion at December 31, 2003, down $98.2 million from
December 31, 2002. Lower interest-cost checking, savings and
money market deposits totaled $6 billion, up $208.4 million from
December 31, 2002, and comprised 78.8% of total deposits at
December 31, 2003, compared with 75.1% of total deposits at
December 31, 2002. The average balance of these deposits for 2003
was $6 billion, an increase of $742.7 million over the $5.3 billion
average balance for 2002. Higher interest-cost certificates of deposit
decreased $306.6 million from December 31, 2002 as other lower-
cost funding sources were available to TCF. TCF’s weighted-average
rate for deposits, including non-interest-bearing deposits, was .58%
at December 31, 2003, down from 1.02% at December 31, 2002.
New Branch Expansion Key to TCF’s growth is its continued
investment in new branch expansion. New branches are an important
source of new customers in both deposit products and consumer
lending products. While supermarket branches continue to play an
important role in TCF’s expansion strategy, the opportunity to add
new supermarket branches within TCF’s markets has slowed from
prior years. Therefore, TCF has continued new branch expansion by
opening more traditional branches. Although traditional branches
require a higher initial investment than supermarket branches, they
ultimately attract more customers and become more profitable.
During 2003, TCF opened 19 new branches. The focus on opening
new branches will continue in 2004, with the planned opening of
28 branches, including 22 new traditional branches and six new
supermarket branches.