TCF Bank 2009 Annual Report Download - page 11

2009 Annual Report : 9
and card service fees. Litigation against Visa could also
have an impact on future card revenue. Regulatory issues
and the related compliance burden continue to increase
and impact TCF’s expense. We continue to monitor these
developments but a growing amount of time and dollars
are being spent on this effort.
• Economic climate, with value declines in both homes
and commercial real estate, and rising unemployment
are major risks for all banks, including TCF.
• In the current state of the economy, the Federal and
most state governments cannot fund their spending
initiatives. Tax increases on businesses, including TCF,
or individuals to fill the spending gaps in an attempt to
balance their budgets is a risk on multiple fronts to TCF.
• Managing interest rate risk and the continued low
levels of interest rates with an eye toward the possibility
of rapidly increasing inflation continues to be very
challenging.
• Potential reductions in our borrowing capacity because
of restrictions put on the Federal Home Loan Banks or
the Federal Reserve Discount Window could reduce our
liquidity and could inhibit growth or force higher deposit
costs. Growing deposits reduces this risk.
Deposit gathering and loan and lease production are
the bread and butter of TCF, and a high priority for our
entire management team in 2010. Checking account
growth provides a low-cost funding base and drives
future deposit fee income.
• Carefully monitor credit quality. Our objective in this
area is to remain conservative through controlled and
thorough credit evaluation, secured lending, and prompt
accounting for credit losses and the related provisioning.
I expect home values to stabilize and the economy to
begin to improve during the year which should reduce
the rate of loan and lease defaults and reduce credit
losses. Credit quality, however, will largely depend on
the viability of the U.S. economy.
• Use capital wisely. TCF has maintained a solidly
capitalized structure for many years. If in 2010 regulators
increase their capital standards on banks, we will react
accordingly. We will always be good stewards of our
stockholders’ capital and think long-term. Prudent capital
management, which includes making wise investments,
is a top priority.
• Stay innovative in product and service offerings within
the constraints of new regulations. We need to be
flexible and move quickly in response to potential
government mandated controls and restrictions placed on
our products and services, and protect our future profits.
• Continue to review and control expenses. In this
difficult operating environment, it is important to focus on
expense control and in 2010, it will be a team effort of all
TCF employees. We will continue to identify areas within
our business lines to improve processes and efficiencies.
• Continue our longstanding commitment to strong
corporate governance. Our customers and stock holders
entrust us with their money and confidential information
and, therefore, our management practices demand high
standards of ethics. Reputation for honesty and integrity
continues to rank at the top of our priorities.
Risks to Our Business Strategy:
• Congressional and regulatory actions could have an
impact on our business and our ability to generate future
fee income. We do not know what Congress will do next;
they may impose additional regulations on checking fees
0908070605
$9.1
$9.8
$9.6
$10.2
$11.6
Total Deposits
Billions of Dollars
+13% annual growth rate
(’09 vs. ’08)
Certificates of Deposit
Core Deposits
0908070605
2,137
2,240
2,226
2,265
2,473
Checking &
Savings Accounts
Thousands
+9% annual growth rate (’09 vs. ’08)
Saving Accounts
Checking Accounts