TCF Equipment Finance

Transcription

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 over $20 Billion in assets TCF Bank provides a stable source of funding for TCF Equipment Finance. 2

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

4 The TCF Wholesale 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. A leading commercial real estate lender offering a wide range of product types and deal structures. 4

5 Strategic Pillars 1 Diversification Focus on national vs. footprint lending increases quality and diversification of portfolio 2 Profitable Growth Strong origination, loan sale and securitization capabilities drive loan growth and revenue diversification with a continued high net interest margin 3 Operating Leverage Focus on improving operating leverage following recent build-out of key functions 4 Core Funding Maintain sufficient funding sources to support loan and lease growth Execution under a strong enterprise risk management and credit culture 5

6 Corporate Profile 45 th largest publicly-traded U.S. based bank holding company by asset size bank branches in eight states Approximately 147,000 small business banking relationships: 71,200 checking accounts 75,800 lending relationships Loan and lease portfolio makes up 84% of total assets Tangible common equity ratio of 8.79% 2 Tangible book value (TBV) per common share of $ ($ millions) ($ millions) $2,839 $2,644 $1,319 $4,012 $3,146 $2,147 $2,648 As of 12/31/15 A WELL-DIVERSIFIED EARNING ASSET PORTFOLIO 4Q15 Earning Asset Yield of 4.76% FUNDED BY A LOW COST DEPOSIT BASE 4Q15 Rate of 0.34% Return on average tangible common equity (ROATCE) of 10.48% 3 $3,904 $4,717 1 Source: SNL Financial (September 30, 2015) 2 See Reconciliation of GAAP to Non-GAAP Financial Measures Tangible Common Equity Ratio and Tangible Book Value Per Common Share slide 3 YTD; see Reconciliation of GAAP to Non-GAAP Financial Measures Return on Average Tangible Common Equity slide $5,691 $2,408 6

7 Loan and Lease Portfolio As of 12/31/15 ($ millions) $14,150 5% 22% 24% 15% 34% Inventory Finance Leasing & Equipment Finance Commercial Auto Finance Consumer Real Estate - Junior Lien Consumer Real Estate & Other - First Mortgage $17,436 $16,402 $15,847 $15,426 13% 10% 11% 10% 23% 21% 22% 23% 18% 22% 20% 19% 4% 8% 12% 15% 16% 16% 16% 16% 27% 24% 19% 15% 54% Wholesale 46% Retail Year-over-year loan and lease growth of 6.3% Auto Finance and Inventory Finance portfolios accounted for 28% of total loans and leases vs. 5% at year end 2011 Consumer real estate first lien mortgages accounted for 15% of total loans and leases vs. 34% at year end 2011 No single asset class greater than 25% of the total portfolio Able to shift originations in response to market conditions Auto Finance loan and lease portfolio totaled $3.6 million at 12/11

8 Leasing & Equipment Finance As of 12/31/15 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 Airport Ground Support Equip. Capital Markets/Syndication Commercial Marine Discounting Environmental Services Franchise Golf Manufacturing Material Handling Municipal Specialty Markets Construction Healthcare Transportation 8 * Includes combined assets of TCFEF and an affiliate

9 Leasing and Equipment Finance As of 12/31/15 ($ millions) Serviced for Others Portfolio Loans and Leases 1 $3,355 $3,484 $3,679 $3,994 $4,290 YTD Originations $1,484 $1,696 $1,730 $1,874 $1, Includes operating leases of $137.6 million at December 31, 2015

10 Segment Specialization Corporate Development Core Markets On-Going Strategic Business Development Capital Markets Agriculture Franchise Manufacturing Airport Ground Support Equipment Discounting Construction Golf Specialty Markets Commercial Marine Syndication Environmental Services Healthcare Transportation Material Handling Municipal 10

11 AGRICULTURE Segment CAPITAL MARKETS CONSTRUCTION, TRANSPORTATION & ENVIRONMENTAL SERVICES Equipment Combines Tillage Headers Tractors Irrigation Trailers Sprayers Trucks Planters/Air Seeders Acquisitions Syndication buy opportunities Syndication sell opportunities Heavy highway Water Steel construction Sewer Excavation Demolition Refuse Septic trucks Redi-Mix Transportation DISCOUNTING Technology FF & E Generalist Segment Specialization FRANCHISE GOLF HEALTHCARE Real Estate Capital loans Refinances/remodels Equipment purchases Restaurant franchise store acquisitions Golf cars Turf equipment Select irrigation equipment General Medical Homecare Chiropractic Optical Dental Veterinary Fitness Software MANUFACTURING SPECIALTY MARKETS 11 STRATEGIC BUSINESS DEVELOPMENT Machine tools Dry cleaning Wood working Printing & packaging Fabrication Food processing Commercial laundry Plastic injection molding Emergency vehicles Shuttle & school buses Funeral vehicles Tire service vehicles Mechanics trucks Tow & recovery equipment Motorcoaches Airport Ground Support Equipment Commercial Marine Material Handling Municipal

12 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 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 12 Return the equipment guaranteeing the residual 2016 TCF amount Equipment Finance Installment Payment Agreement (IPA) Customer pays a fixed amount over a period of time Used to finance non-tangible collateral

13 Executive Management Gary A. Peterson President, Chief Executive Officer Equipment Finance Division Responsible for the strategic direction, overall business development, operations, and financial results of the company. Kyin Lok Senior Vice President, Chief Corporate, Capital Markets, and Strategic Business Development Officer Creates strategic action plans for new opportunities including company and/or tactical portfolio acquisitions. 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. Jim Groenewold Senior Vice President, Chief Financial Officer Equipment Finance Division Key responsibilities include financial management including forecasting, accounting, financial reporting and tax. 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. 13

14 Contact Us Headquarters: Wayzata Boulevard, Ste. 801 Minnetonka, MN Phone: Fax: Other Office Locations: Illinois Iowa Michigan Missouri 14