TCF Bank 2011 Annual Report Download - page 12

Download and view the complete annual report

Please find page 12 of the 2011 TCF Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 140

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140

08 TCF Financial Corporation and Subsidiaries
Revenue
TCF’s total revenue in 2011 was $1.1
billion, down 8 percent from last year
with net interest income remaining flat
and non-interest income decreasing
17 percent.
Banking fees and service charges
declined 20 percent from 2010 primarily
due to the full annual impact in 2011
of Regulation E, the opt-in regulations
regarding ATM transactions and
one-time debit card transactions that
became effective in August 2010. While
I feel TCF did a good job educating
customers on opt-in, this regulation still
had a sizeable impact on overdraft
revenue in 2011. The full impact is
now built in and the opt-in initiative is
largely behind us. The fee revenue lost
to Regulation E was partially offset
by the implementation of monthly
maintenance fees for retail customers
not meeting certain account criteria. In
late 2011, we implemented the new
fee waiver criteria which included a
minimum of 15 qualifying transactions
per month to waive the monthly
maintenance fee. This product is
different than many of our competitors.
Instead of requiring a high minimum
balance, we are just asking that our
customers simply use their account.
TCF’s card revenue of $96.1 million in
2011 was down 13 percent from 2010,
which was attributable to the imple-
mentation of the Durbin Amendment
in October 2011. The impact of the
Durbin Amendment in the fourth
quarter of 2011 resulted in decreased
revenue of $14.7 million.
Leasing and equipment finance
continued to be an important revenue
source for TCF in 2011. These revenues
totaled $89.2 million, which remained
flat compared with 2010.
Expenses
TCF’s operating expenses were again
very well controlled in 2011. We
continued to streamline our business
processes and operations to make
them as efficient as possible. Our new
functionally organized management
structure will provide more opportuni-
ties for TCF to improve efficiencies
and reduce operating expenses
moving forward. During the third
quarter of 2011, TCF discontinued its
debit card reward program as a result
of the implementation of the Durbin
Amendment. We continue to look
for additional expense savings opportu-
nities as a way to help contribute to
the bottom line in the challenging
economic and regulatory environment.
Non-Interest expense totaled $764.5
million in 2011, up slightly from 2010. We
saw increased FDIC insurance expenses
related to changes in the rate calculations
for banks over $10 billion in total assets,
which were implemented in April 2011.
Foreclosed real estate and repossessed
asset expenses also increased in 2011
primarily due to valuation writedowns
on commercial real estate.
Even during this difficult operating
environment, TCF remains committed
to the ongoing professional develop-
ment of its employees and continues to
recognize and motivate hard working
individuals through job promotions,
incentive compensation, tuition
reimbursement and other reward
1110090807
$278
$271
$287
$273
$219
Fees & Service Charges
Millions of Dollars
Fees & Other Revenue
$1,092
$1,092
$1,159
$1, 237
$1,144
Net Interest Income
1110090807
Total Revenue
Millions of Dollars