TCF Bank 2005 Annual Report Download - page 55

352005 Form 10-K
At December 31, 2005, 153, or 34%, of TCF’s 453 branches were opened since January 1, 2000. Additional information regarding TCF’s
branches opened since January 1, 2000 is displayed in the table below:
Percentage
At or For the Year Ended December 31, Increase
(Dollars in thousands) 2005 2004 2003 2002 2001 2005/2004
Number of new branches opened
during the year:
Traditional 18 19 14 12 6 N.M.
Supermarket 711 5 15 21 N.M.
Campus 3––––N.M.
Total 28 30 19 27 27 N.M.
Number of new branches at year end:
Traditional 71 53 34 20 8 N.M.
Supermarket 79 72 61 56 41 N.M.
Campus 3––––N.M.
Total 153 125 95 76 49 N.M.
Percent of total branches 33.8% 29.1% 23.7% 19.2% 13.1% N.M.
Number of checking accounts 266,512 206,229 142,467 82,604 41,870 29.2%
Deposits:
Checking $ 437,074 $322,347 $173,091 $ 89,836 $36,693 35.6
Savings 319,816 156,480 110,372 102,279 16,396 104.4
Money market 30,294 20,466 20,245 15,711 15,998 48.0
Subtotal 787,184 499,293 303,708 207,826 69,087 57.7
Certificates of deposit 351,295 70,832 49,081 42,165 27,621 N.M.
Total deposits $1,138,479 $570,125 $352,789 $249,991 $96,708 99.7
Total fees and other revenue for the year $ 68,220 $ 50,969 $ 28,915 $ 16,747 $ 7,191 33.8
N.M. Not Meaningful.
Deposits Checking, savings and money market deposits are an
important source of low-cost funds and fee income for TCF. Deposits
totaled $9.1 billion at December 31, 2005, up $1.1 billion from
December 31, 2004. Checking, savings and money market
deposits totaled $7.2 billion, up $702 million from December 31,
2004, and comprised 79% of total deposits at December 31, 2005,
compared with 81.6% of total deposits at December 31, 2004.
The average balance of these deposits for 2005 was $6.7 billion,
an increase of $457 million over the $6.3 billion average balance
for 2004. At December 31, 2005, certificates of deposit increased
$447 million from December 31,2004. TCF had no brokered
deposits at December 31, 2005 or 2004. TCF’s weighted-average
rate for deposits, including non-interest bearing deposits, was
1.64% at December 31, 2005, up from .69% at December 31, 2004,
primarily reflecting increases in Premier checking and Premier
savings average balances and overall increases in interest rates.
New Branch Expansion Key to TCF’s growth is its continued
investment in new branch expansion. New branches are an impor-
tant source of new customers in both deposit products and con-
sumer 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.
Therefore, TCF will continue 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 larger and more profitable.
During 2005, TCF opened 28 new branches. The focus on opening
new branches will continue in 2006 with the planned opening of
24 branches, including 17 new traditional branches, five new
supermarket branches and two new campus branches. During the
fourth quarter of 2005, TCF announced plans to enter the Phoenix,
Arizona metropolitan area market. Initially, TCF plans to open
several consumer loan production offices during 2006 with con-
struction of retail branches to begin later in 2006 or early 2007.