TCF Bank 2009 Annual Report Download - page 20

4 : TCF Financial Corporation and Subsidiaries
Inventory Finance See “Item 1. Business — Lending
Activities” for information on TCF’s inventory nance business.
 TCF competes with a number of depository
institutions and nancial service providers in its market
areas, and experiences signicant competition in attracting
and retaining deposits and in lending funds. Direct competi-
tion for deposits comes primarily from banks, savings
institutions, credit unions and investment banks. Additional
signicant competition for deposits comes from institutions
selling money market mutual funds and corporate and
government securities. TCF competes for the origination of
loans with banks, mortgage bankers, mortgage brokers,
consumer and commercial nance companies, credit unions,
insurance companies and savings institutions. TCF also
competes nationwide with other companies and banks in
the nancing of equipment and inventory. Expanded use
of the Internet has increased competition affecting TCF
and its loan, lease and deposit products.
 As of December 31, 2009, TCF had 7,573
employees, including 2,435 part-time employees. TCF
provides its employees with a comprehensive program of
benets, some of which are provided on a contributory
basis, including comprehensive medical and dental plans,
a 401(k) savings plan with a company matching contribution,
life insurance and short- and long-term disability coverage.
Regulation
The banking industry is generally subject to extensive
regulatory oversight. TCF Financial, as a publicly held
nancial holding company, and TCF Bank, which has deposits
insured by the Federal Deposit Insurance Corporation
(“FDIC”), are subject to a number of laws and regulations.
Many of these laws and regulations have undergone signi-
cant change in recent years. These laws and regulations
impose restrictions on activities, minimum capital require-
ments, lending and deposit restrictions and numerous other
requirements. Future changes to these laws and regulations,
and other new nancial services laws and regulations, are
likely and cannot be predicted with certainty. TCF Financial’s
primary regulator is the Federal Reserve Bank (“FRB”) and
TCF Bank’s primary regulator is the Ofce of the Comptroller
of the Currency (“OCC”).
 TCF Financial and
TCF Bank are subject to regulatory capital requirements
of the FRB and the OCC, respectively, as described below.
These regulatory agencies are required by law to take
prompt action when institutions are viewed to be unsafe
or unsound or do not meet certain minimum capital
standards. The Federal Deposit Insurance Corporation
Improvement Act of 1991 (“FDICIA”) denes ve levels of
capital condition, the highest of which is “well-capitalized.”
It requires that regulatory authorities subject undercapital-
ized institutions to various restrictions such as limitations
on dividends or other capital distributions, limitations on
growth or restrictions on activities. Undercapitalized banks
must develop a capital restoration plan and the parent
nancial holding company is required to guarantee compli-
ance with the plan. TCF Financial and TCF Bank are “well-
capitalized” under the FDICIA capital standards.
The FRB and the OCC also have adopted rules that could
permit them to quantify and account for interest-rate risk
exposure and market risk from trading activity and reect
these risks in higher capital requirements. New legislation,
additional rulemaking, or changes in regulatory policies
may affect future regulatory capital requirements appli-
cable to TCF Financial and TCF Bank. The ability of TCF
Financial and TCF Bank to comply with regulatory capital
requirements may be adversely affected by legislative
changes, future rulemaking or policies of regulatory
authorities, unanticipated losses or lower levels of earnings.
 TCF Financial’s ability to
pay dividends is subject to limitations imposed by the FRB. In
general, FRB regulatory guidelines call upon a bank holding
company’s board of directors to take a number of factors into
account when considering the payments of dividends, including
the quality and level of current and prospective earnings.
Dividends or other capital distributions from TCF Bank
to TCF Financial are an important source of funds to enable
TCF Financial to pay dividends on its common stock, to make
payments on TCF Financial’s borrowings, or for its other
cash needs. The ability of TCF Financial and TCF Bank to pay
dividends is dependent on regulatory policies and regulatory
capital requirements. The ability to pay such dividends in
the future may be adversely affected by new legislation or
regulations, or by changes in regulatory policies.