tcf equipment finance · ©2018 tcf equipment finance 3 delivering finance solutions. foundational...

©2018 TCF Equipment Finance

1©2018 TCF Equipment Finance

TCF Equipment FinanceDelivering Finance Solutions

Industry Knowledge • Tailored Products • Unrivaled Service


2

Business Update & Outlook


3Delivering finance solutions.

Foundational Strength

TCF EQUIPMENT FINANCE IS A DIVISION OF TCF NATIONAL BANK.

• Started in 1923 as Twin City Building & Loan Association

• TCF National Bank is a subsidiary of TCF Financial Corporation (NYSE:TCF), a Minnesota-based national bank holding company with over $23 Billion in assets

• TCF Bank provides a stable source of funding for TCF Equipment Finance.

BRANCH FOOTPRINT


4

TCF Financial

Corporation

(NYSE: TCF)

TCF National Bank

WholesaleBanking

TCF Equipment

Finance

TCF Inventory Finance

Winthrop Resources

Commercial Banking

Consumer Banking

Retail (Branch) Banking

Retail Lending

Gateway One Lending & Finance

Corporate Structure


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The TCF Wholesale Lending Family

Business to business equipment finance

solutions tailored to the success of our

customers, vendors and manufacturers in

specialized niche markets.

High‐technology equipment leasing including the purchase and leaseback of equipment, trade‐ins and leases.

A leading commercial bank offering corporate banking, commercial real estate, capital funding and treasury management services.

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


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Corporate Profile

• $23.4 billion national bank holding company headquartered in Minnesota

• 48th largest publicly-traded U.S. based bank holding company by asset size*

• 318 bank branches in seven states

• Approximately 136,100 small business banking relationships:

• 60,600 checking accounts• 75,500 lending

relationships

• Average loan and lease portfolio makes up 83% of average total assets

* Source: S&P Global Market Intelligence (December 31, 2017)

(Average balances,$ millions)

$5,411

$6,192 $1,698

$4,998

$1,933

$3,601

$4,691

$3,020

$2,880 $3,128

$2,358

A WELL-DIVERSIFIED EARNING ASSET PORTFOLIO…

…FUNDED BY A LOW COST DEPOSIT BASE

11% 9%

13%

14%

22%

17%

14%

27%

34%

9%

30%

(Average balances,$ millions)

As of 3/31/18



Values

Business Update & Outlook



TCF Equipment Finance

We are experts at delivering equipment finance solutions that continue to exceed the needs of our vendors, sources and customers in a

growing number of select markets, through our unique combination of industry knowledge, tailored products and services, opportunistic

business model and financial strength.

Value Proposition



14%

18%

25%

17%

16%

10%

14%

19%

23%

18%

15%

11%

14%

19%

25%

17%

15%

10%

• Year-over-year loan and lease growth in wholesale businesses:• Inventory finance up 20.7% • Leasing and equipment finance up 9.1% • Commercial up 8.9%

• Strong loan and lease diversification by asset class, geography, rate, average loan and lease size, estimated weighted average life and collateral type

• Auto finance portfolio run-off of $360.3 million in 1Q18

• Loan and lease growth of 8.9% year-over-year excluding auto finance

Loan and Lease Portfolio

($ millions)

16%

19%

24%

15%

14%

12%

Inventory finance

Leasing and equipment finance Commercial

Auto finance Consumer real estate - Junior lien Consumer real estate & Other - First mortgage lien

18%

19%

24%

14%

15%

10%

Loan and lease growth of 7.8% YoY

$17,975$19,383

As of 3/31/18



Leasing and Equipment Finance($ millions)

As of 3/31/18

* Includes operating leases

YTD Originations* $1,874 $1,969 $2,137 $1,959 $433

Portfolio Loans and LeasesServiced for Others

$3,994



As of 3/31/18

• National service area

• 15th largest bank-affiliated equipment finance company in the U.S. in terms of net assets and 12th in terms of volume *

• >300 employees

• A stable, profitable and growing financing provider mastering every market we serve:

Leasing & Equipment Finance

* Includes combined assets of TCFEF and an affiliate / Source: The Monitor, 2016 Monitor Bank 50

Agriculture

Airport Ground Support Equip.

Automotive Service Equipment

Capital Markets/Syndication

Commercial Marine

Construction

Discounting

Environmental Services

Franchise

Golf

Healthcare

Manufacturing

Material Handling

Municipal

Specialty Markets

Sports & Entertainment

Transportation



Net Investment By SegmentTotal Net Investment = $4.6 Billion

$983

$812

$491$421

$403

$200

$213

$192

$347$184

$161 $69 $54 Specialty MarketsCTESGolfPortfoliosManufacturingFranchise FinanceDiscountingHealthcareCapital MarketsAgricultureSBDHomecareEFLC

As of 3/31/18


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Acquisitions & Portfolios

Discounting

Syndication Buy & Sell

Specialty Markets

GolfCTES

(Construction, Transportation &

Environmental Services)

Automotive Service

Equipment

Agriculture Airport Ground Support

Corporate Development

Core Segments

On-Going Strategic Business Development

Commercial Marine

Healthcare

Manufacturing

Franchise

Municipal

Material Handling

Sports & Entertainment

Segment Specialization


15©2018 TCF Equipment Finance

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Segment Equipment

AGRICULTURE

• Combines ● Tillage• Headers ● Tractors• Irrigation ● Trailers• Sprayers ● Trucks• Planters/Air Seeders

CAPITAL MARKETS• Acquisitions• Syndication buy opportunities• Syndication sell opportunities

CONSTRUCTION, TRANSPORTATION & ENVIRONMENTAL SERVICES

• Heavy highway ● Water• Steel construction ● Sewer• Excavation ● Demolition• Refuse ● Septic trucks• Redi-Mix ● Transportation

DISCOUNTING• Technology• FF & E• Generalist

FRANCHISE• Real Estate ● Capital loans• Refinances/remodels ● Equipment purchases• Restaurant franchise store acquisitions

GOLF• Golf cars• Turf equipment• Select irrigation equipment

HEALTHCARE• General Medical ● Homecare• Chiropractic ● Optical• Dental ● Veterinary• Fitness ● Software

MANUFACTURING• Machine tools ● Dry cleaning• Wood working ● Printing & packaging• Fabrication ● Food processing• Commercial laundry ● Plastic injection molding

SPECIALTY MARKETS• Emergency vehicles ● Shuttle & school buses• Funeral vehicles ● Tire service vehicles• Mechanics’ trucks ● Tow & recovery equipment• Motorcoaches

STRATEGIC BUSINESS DEVELOPMENT

• Airport Ground Support ● Municipal• Commercial Marine ● Sports & Entertainment• Automotive Service Equipment• Material Handling




Finance ProductsTAX 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 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 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



Gary A. PetersonPresident, Chief Executive OfficerEquipment Finance DivisionResponsible for the strategic direction, overall business development, operations, and financial results of the company.

Lee AndersonExecutive Vice President, Chief Lending Officer Equipment Finance DivisionFocused on managing the credit teams and oversight for credit administration and compliance activities.

Judy I. VanOsdelExecutive Vice President, Chief Legal Officer Equipment Finance DivisionProvides legal services to all of TCFEF, manages legal staff and is primary liaison with parent company's legal department.

Kyin LokSenior Vice President, Chief Corporate, Capital Markets, and Strategic Business Development OfficerCreates strategic action plans for new opportunities including company and tactical portfolio acquisitions.

Executive Management



Contact UsHeadquarters:11100 Wayzata Boulevard, Ste. 801Minnetonka, MN 55305

Phone: 800-442-7811Fax: 952-656-3274Email: [email protected]

Other Office Locations:• Illinois • Iowa• Michigan• Missouri

tcf equipment finance · ©2018 tcf equipment finance 3 delivering finance solutions. foundational...

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