TCF Bank 2005 Annual Report Download - page 3

Download and view the complete annual report

Please find page 3 of the 2005 TCF Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 106

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106

Lynn Nagorske, Chief Executive Officer
12005 Annual Report
Dear Stockholders:
While 2005 was a challenging year for TCF,
it was still a good year.
Summarizing the year:
• TCF earned record net income of $265
million and record diluted earnings per
share (EPS) of $2.00, up 7.5 percent
from $1.86 in 2004.
• TCF’s return on average assets (ROA)
was 2.08 percent, return on average equity
(ROE) was 28.03 percent, and net interest
margin was 4.46 percent. Based on these
ratios, TCF remains one of the best per-
forming banks of the Top 50 Banks in the
United States.
• TCF’s stock price closed at $27.14 on
December 31, 2005, down 16 percent from
$32.14 per share on December 31, 2004.
This was a disappointing result.
• TCF recently increased its annual divi-
dend rate eight percent to $.92 per share.
This is the 15th consecutive year we have
increased the dividend. TCF’s 10-year
compounded annual dividend growth
rate ranks sixth of the Top 50 Banks in
the country.
Major factors affecting TCF’s performance
in 2005 were:
1. Interest Rates
While short-term interest rates rose
eight times in 2005, the 10-year Treasury
rate remained approximately the same,
resulting in a further flattening of the
yield curve in 2005.
In the early part of the year when long-
term Treasury rates dipped, we held back
Letter to Stockholders
Lynn A. Nagorske, Chief Executive Officer
arecord
year for TCF