TCF Bank 2004 Annual Report Download - page 9

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2004 Annual Report 7
In January of 2005, approximately 1.1 million shares of performance-
based restricted stock vested for senior management. Since the issuance
of this grant in 2000, TCF’s diluted EPS has increased 86 percent, or a 13
percent compound annualized growth rate. Over the same time period,
TCF’s stock price has increased 158 percent, or a 21 percent compound
annualized return to shareholders plus dividends. The cost of this stock
grant was largely offset by the related income tax benefit for the market
value of the grant when it vested. We believe this performance-based
restricted stock plan has helped produce superior financial results for
our shareholders and has retained and motivated our talented man-
agement team. We are true owners as we face the downside risks of
decisions as well as the upside potential.
TCF repurchased 4 million shares of its stock in 2004 at an average cost
of $29.14 per share. TCF has repurchased a total of 54.2 million shares
(29 percent) since the beginning of 1998, at an average cost of $17.58
per share. We will repurchase fewer shares in 2005 since we will be required
to retain more capital to fund our balance sheet growth. We consider
the return from repurchasing TCF stock as a hurdle rate for acquisitions.
We once again would like to thank our hardworking, responsive and
dedicated Board of Directors. Our Board of Directors consists largely of
entrepreneurial business people who also own TCF stock. We appreciate
their valuable insights and support. During 2004, Doug Scovanner
joined TCF’s Board of Directors. Doug’s retailing perspectives provide
a valuable contribution.
We would also like to recognize and thank our outstanding employees
for
being part of the TCF Team. Their exceptional abilities, commitment
and energy make everything happen. We are proud of the TCF Team and
their accomplishments.
Thank you for your continued support and investment in TCF. 2005
promises to be another interesting and challenging year. We remain
optimistic about TCF’s future prospects.
William A. Cooper
Chairman of the Board and Chief Executive Officer
Lynn A. Nagorske
President and Chief Operating Officer
“Our philosophy at TCF
is to run a highly profitable
bank and to minimize risk.”