TCF Bank 2005 Annual Report Download - page 5

Download and view the complete annual report

Please find page 5 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

4. Power Assets and Power Liabilities
TCF’s Power Asset lending operations
continued to generate strong growth.
Power Assets totaled $9.4 billion at the
end of 2005 and increased 13 percent
over the prior year.
Consumer home equity loans grew 18
percent and now top $5 billion. Due to the
flat yield curve, there was a large change
in the mix during 2005. Fixed-rate loans
grew $1.5 billion and variable-rate loans
shrank $759.3 million.
Commercial loans increased six percent
and Leasing and Equipment Finance grew
12 percent (including operating leases).
Winthrop Resources Corporation outstand-
ings grew five percent in 2005.
32005 Annual Report
industry in 2005. These revenues declined
in 2005 despite an increase in the number
of checking accounts. Customers are
changing their checking account behavior.
Debit card transactions continue to
replace checks and there are more ACH-
type transactions each month. We started
out the year in a hole as we were hurt by
higher than anticipated checking account
attrition. Some of our customers misused
their debit cards and, as a result, we were
forced to close their accounts. This hap-
pened more than we anticipated. We have
made many changes to remedy this
situation and believe we made progress
throughout 2005.
Checking account growth slowed in 2005.
We now have over 1.6 million checking
accounts (up 4.4 percent in 2005). This
slower growth also adversely impacted
fee income. For a long time, TCF faced
more limited competition and owned the
“free checking” market. This is no longer
the case as our strategies have been widely
copied and we face stiff competition. We
expect to re-energize our marketing and
promotion efforts in this area in 2006.
Card revenues grew substantially in 2005,
with an increase of 26 percent to $79.8
million. TCF is the tenth largest Visa®
Classic debit card issuer in the United
States, based on sales volume.
Leasing and Equipment Finance fees
and other revenues totaled $47.4 million
for 2005, down six percent. 2004 leasing
revenues included several unusually large
lease equipment buyout transactions that
did not reoccur in 2005.
Diluted EPS
dollars
0504030201
$1.35
$1.58
$1.53
$1.86
$2.00