TCF Equipment Finance

Size: px

Start display at page:

Download "TCF Equipment Finance"

Logan Owens
8 years ago
Views:

1 TCF Equipment Finance Delivering Finance Solutions Industry Knowledge Tailored Products Unrivaled Service 1

2 Foundational Strength TCF EQUIPMENT FINANCE IS A DIVISION OF TCF NATIONAL BANK. Started in 1923 as Twin City Building & Loan Association BRANCH FOOTPRINT TCF National Bank is a subsidiary of TCF Financial Corporation (NYSE:TCB), a Minnesota-based national bank holding company with nearly $20 Billion in assets TCF Bank provides a stable source of funding for TCF Equipment Finance. 2

a subsidiary of TCF Financial Corporation (NYSE:TCB), a Minnesota-based national bank holding

Finance TCF Inventory Finance Winthrop Resources Gateway One

3 Corporate Structure TCF Financial Corporation (NYSE: TCB) National Lending Retail & Commercial Banking TCF Equipment Finance TCF Inventory Finance Winthrop Resources Gateway One Lending & Finance Retail (Branch) Banking Retail Lending Commercial Banking 3

Specialized divisions that focus on providing value & added finance solutions High-technology equipment leasing including the

4 The TCF National Lending Family Equipment finance solutions for businesses, vendors and manufacturers in specialized segments. Inventory financing for the consumer electronics, lawn and garden, power sports, marine and recreation industries. Specialized divisions that focus on providing value & added finance solutions High-technology equipment leasing including the purchase and leaseback of equipment, trade-ins and leases. Serving the indirect auto marketplace by providing portfolio management and specialized loan servicing. 4

5 Financial Corporation 45 th largest publicly-traded U.S. based bank holding company by asset size bank branches in eight states Over 146,000 small business banking relationships: 73,500 checking accounts 72,600 lending relationships 85% of total assets are loans & leases Tangible common equity to tangible assets of 8.72% Tangible book value per common share of $ A Well-Diversified Earning Asset Portfolio Consumer Real Estate (Junior Liens) 14% Securities & Other 6% Consumer Real Estate & Other (First Mortgages) 17% Leasing & Equipment Finance 20% $2,678 $2,888 $1,118 $3,791 $3,112 $2,302 $2,106 As of 6/30/15 (Balances in $ millions) Inventory Finance 13% Funded by a Low Cost Deposit Base CDs 20% $3,196 $4,968 Commercial Lending 18% Auto Finance 12% Savings 31% Return on average tangible common equity of 11.34% 2 Checking 34% $5,376 $2, Source: SNL Financial (3/31/15) 2 QTD annualized Money Market 15%

assets are loans & leases Tangible common equity to tangible assets of 8.72% Tangible book value per common share of $10.

6 Loan & Lease Portfolio As of 6/30/15 (Balances in $ millions) Inventory Finance Leasing & Equipment Finance Commercial Auto Finance Consumer Real Estate- Junior Lien Consumer Real Estate & Other- First Mortgage 14% Year-over-year loan and lease growth of 5.2% $14,150 5% 22% $15,426 10% 21% $15,847 10% 22% $16,402 11% 23% $16,877 13% 22% 53% Wholesale Continued diversification of loan and lease portfolio across businesses and markets 24% 15% 22% 4% 16% 20% 19% 8% 12% 16% 16% 18% 14% 16% 47% Retail Flexibility to strategically invest growing capital base in response to competitive environments 34% 27% 24% 19% 17% 1 12/11 12/12 12/13 12/14 6/15 6 * Auto Finance loan and lease portfolio totaled $3.6 million at 12/11

2% $14,150 5% 22% $15,426 10% 21% $15,847 10% 22% $16,402 11% 23% $16,877 13% 22% 53% Wholesale Continued diversification of loan and lease portfolio across businesses and markets

7 Leasing & Equipment Finance As of 6/30/15 National service area 14th largest bank-affiliated equipment finance company in the U.S. in terms of net assets and 12 th in terms of volume * 356 employees A stable, profitable and growing financing provider mastering every market we serve: Agriculture Capital Markets Commercial Marine Construction Discounting Environmental Services Franchise Golf Healthcare / Homecare Manufacturing Municipal Specialty Markets 7 * Includes combined assets of TCFEF and an affiliate

mastering every market we serve: Agriculture Capital Markets Commercial Marine Construction Discounting Environmental Services

8 Leasing & Equipment Finance Total Portfolio * As of 6/30/15 (Balances in $ millions) Portfolio Loans and Leases Serviced for Others 5,000 4,000 $3,355 $3,484 $3,679 $3,994 $4,036 3,000 2,000 1,000 12/11 12/12 12/13 12/14 6/15 8 * Includes combined assets of TCFEF and an affiliate

4,000 $3,355 $3,484 $3,679 $3,994 $4,036 3,000 2,000 1,000 12/11

9 Segment Specialization Corporate Development Core Markets Strategic Business Development Capital Markets Construction Golf Manufacturing Agriculture Discounting Environmental Services Healthcare Specialty Markets Commercial Marine Syndication Franchise Homecare Municipal 9 On-Going New Segment Development

Discounting Environmental Services Healthcare Specialty Markets Commercial

10 Segment Specialization Segment CAPITAL MARKETS CONSTRUCTION & ENVIRONMENTAL SERVICES DISCOUNTING FRANCHISE GOLF HEALTHCARE / HOMECARE MANUFACTURING SPECIALTY MARKETS STRATEGIC BUSINESS 10 DEVELOPMENT Acquisitions Syndication buy opportunities Syndication sell opportunities Equipment Heavy highway Water Steel construction Sewer Excavation Demolition Refuse Septic trucks Redi-Mix Transportation Technology FF & E Generalist Restaurant franchise store acquisitions Capital loans Refinances/remodels Equipment purchases Real Estate Golf cars Turf equipment Select irrigation equipment General Medical Homecare Chiropractic Optical Dental Veterinary Fitness Software Machine tools Dry cleaning Wood working Printing & packaging Fabrication Food processing Commercial laundry Plastic injection molding EMS vehicles Shuttle & school buses Funeral vehicles Tire service vehicles Mechanics trucks Tow & recovery equipment Motorcoaches Agriculture Commercial Marine Municipal Strategic Expansion

Technology FF & E Generalist Restaurant franchise store acquisitions Capital loans Refinances/remodels Equipment purchases Real Estate Golf cars Turf equipment Select irrigation equipment General

11 Finance Products TAX LEASES NON-TAX LEASES FINANCING ARRANGEMENTS Also referred to as True Leases TCFEF retains ownership Lessee gets lower payments Also referred to as a Finance Lease Lessee is treated as the owner Lessee is entitled to tax benefits Customer is treated as the owner Customer is entitled to tax benefits Fair Market Value (FMV) Lease End of Term Options Purchase the equipment at FMV Renew the lease Return the equipment Lease Purchase / Finance Lease Arrangement for the purchase of the asset $1.00 Buyout at end of term Stated Purchase Option (10%, $101, etc.) Equipment Finance Arrangement (EFA) Provides a finance product while accruing equity First Amendment Lease End of Term Options Purchase the equipment at the FMV or set floor amount (residual value) Renew the lease Loan Customer pays a fixed amount over a period of time 11 Terminal Rental Adjustment Clause (TRAC) Lease For motorized vehicles and trailers End of Term Options Purchase the equipment at the TRAC amount (stated price) at end of term Return the equipment guaranteeing the residual amount Installment Payment Agreement (IPA) Customer pays a fixed amount over a period of time Used to finance non-tangible collateral

at FMV Renew the lease Return the equipment Lease Purchase / Finance Lease Arrangement for the purchase of the asset $1.00 Buyout at end of term Stated Purchase Option (10%, $101, etc.

12 Executive Management William S. Henak President, Chief Executive Officer Equipment Finance Division Responsible for the strategic direction, overall business development, operations, and financial results of the company. Richard J. Chenitz Executive Vice President, Chief Marketing and Corporate Development Officer Equipment Finance Division Creates strategic action plans for new opportunities including company and portfolio acquisitions with responsibility over capital markets, marketing and lead generation. Gary A. Peterson Executive Vice President, Chief Operating Officer Equipment Finance Division Primary responsibilities are for the national Sales organization, operations and the management of the overall portfolio. Judy I. VanOsdel Executive Vice President, Chief Legal Officer Equipment Finance Division Provides legal services to all of TCFEF, manages legal staff and is primary liaison with parent company's legal department. Jim Groenewold Senior Vice President, Chief Financial Officer Equipment Finance Division Key responsibilities include financial management including forecasting, accounting, financial reporting and tax. Lee Anderson Executive Vice President, Chief Lending Officer Equipment Finance Division Focused on managing the credit teams and oversight for credit administration and compliance activities. 12

Chenitz Executive Vice President, Chief Marketing and Corporate Development Officer Equipment Finance Division Creates strategic action plans for new opportunities including company and portfolio

13 Contact Us Headquarters: Wayzata Boulevard, Ste. 801 Minnetonka, MN Phone: Fax: Other Office Locations: Illinois Indiana Iowa Michigan Missouri 13

TCF Equipment Finance

TCF Equipment Finance Industry Knowledge Tailored Products Unrivaled Service Foundational Strength TCF Equipment Finance (TCFEF) is a division of TCF National Bank. TCF National Bank is a subsidiary of