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 TCF Financial Corporation (NYSE:TCB), a Minnesota-based national bank holding company with over $19 Billion in assets Started in 1923 as Twin City Building & Loan Association TCF Bank provides a stable source of funding for TCF Equipment Finance. Branch Footprint 2
Corporate Structure TCF Financial Corporation (NYSE: TCB) Business-to-Business Lending Retail & Commercial Banking TCF Equipment Finance TCF Inventory Finance Winthrop Resources Gateway One Lending & Finance Retail (Branch) Banking Retail Lending Commercial Banking 3
The TCF 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, tradeins and leases. Serving the indirect auto marketplace by providing portfolio management and specialized loan servicing. 4
41 st largest publicly-traded U.S. based bank holding company by asset size 1 379 bank branches in eight states Over 146,000 small business banking relationships: 75,800 checking accounts 71,000 lending relationships 85% of total assets are loans & leases Tangible common equity to tangible assets of 8.54% 2 Tangible realized book value per share of $9.60 2 Financial Corporation Well-Diversified Earning Asset Portfolio Securities & Other 5% Consumer Real Estate (Junior Liens) 15% Consumer Real Estate & Other (First Mortgages) 18% Leasing & Equipment Finance 22% $2,543 $3,164 $896 $3,745 $3,158 $1,877 $1,915 Low Cost Deposit Base CDs 20% $3,049 $5,213 As of 12/31/14 (Balances in $ millions) Commercial Lending 18% Inventory Finance 11% Auto Finance 11% Savings 34% 1 Source: SNL Financial (3/31/14) 2 See Reconciliation of GAAP to Non-GAAP Financial Measures Tangible Common Equity and Tangible Book Value Per Common Share slide 5 Checking 33% $5,195 $1,993 Money Market 13%
Loan & Lease Portfolio Inventory Finance Commercial Consumer Real Estate & Other $14.8 5% 21% 25% $14.2 5% 22% 24% Leasing & Equipment Finance Auto Finance $15.8 $16.4 $15.4 10% 11% 10% 23% 21% 22% 20% 19% 22% 4% 8% 12% 53% Wholesale As of 12/31/14 (Balances in $ millions) Continue to diversify loan and lease portfolio across segments and markets Multiple business segments give TCF options on where to strategically invest capital in light of competitive environments 49% 49% 43% 40% 35% 47% Retail Year-over-year loan and lease growth rate of 4.6% 12/10 12/11 12/12 12/13 12/14 6
Loan & Lease Portfolio Granularity Wholesale (53% of loans and leases) As of 12/31/14 Other 41% Const. Const. 12% 12% Specialty Vehicles 27% Medical 10% Manufact. 10% Business 17% Other 19% Multi-family 30% Industrial Retail Services Buildings Office 12% 10% Buildings 12% Electronics & Appliances 3% Other 27% Lawn & Garden 19% PowerSports 51% Leasing & Equip. Finance* $3.7 Billion (23%) *Includes combined assets of TCFEF and an affiliate Commercial Banking $3.2 Billion (19%) Retail (47% of loans and leases) Inventory Finance $1.9 Billion (11%) Auto $1. 9 Billion (12%) New Car 25% Used Car 75% Junior Liens 45% First Mortgages 55% Consumer Real Estate $5.7 Billion (35%) Other 20% 7
Leasing & Equipment Finance Total Portfolio * As of 12/31/14 (Balances in $ millions) 4,000 3,000 Core Portfolio Acquired Portfolio $28 $533 $219 $167 $7 2,000 $2,699 $2,993 $3,114 $3,479 $3,827 1,000 0 12/10 12/11 12/12 12/13 12/14 *Includes combined assets of TCFEF and an affiliate Core portfolio includes operating leases of $88.9million at 12/31/14 8
Equipment Finance * As of 12/31/14 National service area 15th largest bank-affiliated equipment finance company in the U.S. in terms of net assets * 14 th largest bank-affiliated equipment finance company in the U.S. in terms of volume * One of the most stable, profitable and growing financing providers in the following markets: Agriculture Capital Markets Commercial Marine Construction Discounting Environmental Services 313 employees Franchise Golf Healthcare Manufacturing Municipal Specialty Markets TCF Bank Stadium is the temporary home to the Minnesota Vikings as work is underway on their new stadium. * Includes combined assets of TCFEF and an affiliate 9
Segment Specialization TCF Equipment Finance Corporate Development Core Markets Strategic Business Development Capital Markets Construction and Environmental Services Golf Manufacturing Agriculture Discounting Franchise Healthcare Specialty Markets Commercial Marine Syndication Municipal On-Going New Segment Development 10
Segment Specialization Segment Capital Markets Construction / Environmental Services Discounting Franchise Golf Healthcare Manufacturing Specialty Markets Strategic Business Development Equipment Acquisition, syndication buy and syndication sell opportunities to achieve strategic areas of growth Heavy highway, street construction, excavation, refuse, Redi-Mix, water, sewer, demolition and septic trucks Technology, FF & E, generalist Restaurant franchise store acquisitions, capital loans, refinances/remodels, and equipment purchases Golf cars, turf equipment and select irrigation equipment Medical including chiropractic, dental, fitness, homecare, optical and veterinary equipment and software Machine tools, wood working, fabrication, commercial laundry, dry cleaning, printing, packaging and food processing, plastic injection molding EMS vehicles, funeral vehicles, mechanics trucks, motorcoaches, shuttle and school bus equipment, tire service vehicles and tow and recovery equipment Agriculture, Commercial Marine, Municipal and Strategic Expansion 11
Finance Products Tax Leases Also referred to as True Leases TCFEF retains ownership Lessee gets lower payments Fair Market Value (FMV) Lease End of Term Options Purchase the equipment at FMV Renew the lease Return the equipment Non-Tax Lease Products Also referred to as a Finance Lease Lessee is treated as the owner Lessee is entitled to tax benefits Lease Purchase / Finance Lease Arrangement for the purchase of the asset Types $1.00 Buyout at end of term Stated Purchase Option (10%, $101, etc.) Financing Arrangements Customer is treated as the owner Customer is entitled to tax benefits Equipment Finance Agreement (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 TRAC amount (stated price) at end of term Return the equipment guaranteeing the residual amount 12 Installment Payment Agreement (IPA) Customer pays a fixed amount over a period of time Used to finance non tangible collateral
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. 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. 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. 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 Accounting 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. 13
Contact Us Headquarters: 11100 Wayzata Boulevard, Ste. 801 Minnetonka, MN 55305 Phone: 800-442-7811 Fax: 952-656-3274 Email: sales@tcfef.com Other Office Locations: Illinois Indiana Iowa Michigan Missouri North Dakota 14