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©2018 TCF Equipment Finance
1©2018 TCF Equipment Finance
TCF Equipment FinanceDelivering Finance Solutions
Industry Knowledge • Tailored Products • Unrivaled Service
©2018 TCF Equipment Finance
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
©2018 TCF Equipment Finance
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
©2018 TCF Equipment Finance
5
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
©2018 TCF Equipment Finance
6
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
©2018 TCF Equipment Finance
9Delivering finance solutions.
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
©2018 TCF Equipment Finance
10Delivering finance solutions.
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$19,383
As of 3/31/18
©2018 TCF Equipment Finance
11Delivering finance solutions.
Leasing and Equipment Finance($ 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
©2018 TCF Equipment Finance
12Delivering finance solutions.
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
©2018 TCF Equipment Finance
13Delivering finance solutions.
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
©2018 TCF Equipment Finance
14
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
©2018 TCF Equipment Finance
15©2018 TCF Equipment Finance
15
Segment Specialization
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
Segment Specialization
©2018 TCF Equipment Finance
16Delivering finance solutions.
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
©2018 TCF Equipment Finance
17Delivering finance solutions.
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
©2018 TCF Equipment Finance
18Delivering finance solutions.
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