TCF Bank 2009 Annual Report Download - page 5

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2009 Annual Report : 3
FDIC-assisted transaction if it fits within the scope of our
business and growth plans. We also intend to continue
our successful branch relocation and remodel programs
during the year.
Consumer real estate loan growth remained relatively
flat in 2009 and totaled $7.3 billion at year-end. Our asset
strategy shifted somewhat in 2009. We reduced the
consumer real estate portfolio and made investments
in our other higher-yielding asset categories because
of ongoing deterioration in home values. In addition,
we felt it was not in our best interest to compete with
government-sponsored lending programs providing low
rates over long durations. Despite these challenges,
TCF provided lending to creditworthy customers and
funded $910.8 million of new consumer real estate loans.
These new loans have thus far performed well with
low delinquencies and minimal charge-offs. We are
pleased with these early results and attribute the good
performance to our conservative underwriting standards.
TCF Wholesale Banking:
Commercial loans increased 7 percent in 2009 and totaled
$3.7 billion at year-end. During the year, REITs, conduits
and other non-bank competitors were out of the market
which led to substantial declines in prepayments and
provided TCF lending opportunities we had not seen for
many years. This also allowed us to further strengthen
our credit underwriting guidelines and improve yields and
terms on all of our commercial lending products. The
commercial real estate business in general experienced
hardship in 2009 and many banks were left with significant
losses in this category. TCF’s commercial real estate loans
performed well and grew 10 percent in 2009. I attribute
this success to our conservative underwriting practices
and our commitment to relationship banking with long-
term customers. Commercial business loans decreased
11 percent for the year as we saw further slowdown in
retail, manufacturing and construction concurrent with
the slowing economy. We believe this situation will turn
around in 2010 as the economy begins to recover. In
addition, we expect to see very good opportunities from
the commercial real estate business even though non-
bank competitors may return to the market.
Specialty finance, TCF’s nationally-focused leasing,
equipment and inventory finance businesses increased
$1.1 billion, or 43 percent, during 2009. Our growth
momentum in specialty finance stemmed from portfolio
purchases and acquisitions as well as organic growth.
TCF’s leasing and equipment finance business grew
24 percent. This $3.1 billion portfolio is well-diversified
by equipment type and geography. Our leasing and
equipment finance operation is now the 32nd largest in
TCF provides a variety of convenient
banking channels to meet the needs of
our diverse customer base including
443 banking ofces in eight Midwest
and Mountain West states and 1,639
ATMs free to TCF customers.
convenience