TCF Bank 2011 Annual Report Download - page 139

Functionally Organized TCF’s new functionally organized
management structure, which emphasizes four key initiatives:
1) Enterprise Risk Management, 2) Lending, 3) Funding and
4) Corporate Development is supported by focused profit center
reporting. This functionally organized management structure
creates a highly responsive and performance driven culture.
Stockholder Value TCF focuses on increasing long-term
stockholder value by making sound business decisions, taking
advantage of marketplace opportunities, and preparing for vari-
ous economic conditions through balance sheet diversification.
Our goal is to make TCF stock a strong, long-term investment.
Convenience TCF emphasizes convenience in banking; we’re
open 12 hours a day, seven days a week, 364 days per year. TCF
banks a large and diverse customer base. We provide customers
innovative products through multiple banking channels, includ-
ing traditional, supermarket and campus branches, TCF Express
Teller® and other ATMs, debit cards, phone banking, Internet
banking and mobile banking.
Checking Accounts TCF focuses on growing and retaining
its large number of low-interest cost checking accounts by
offering convenient hours and delivery channels, and products
with many free features. TCF uses the checking account as the
anchor account to build additional customer relationships.
Deposits TCF earns a significant portion of its profits from the
deposit side of the bank. We accumulate a large number of low
cost accounts through convenient services and products targeted
to a broad range of customers. As a result of the profits we earn
from the deposit business, we can minimize credit risk on the
asset side.
Secured and Diversified Lender TCF maintains a secured
loan and lease portfolio that is well-diversified by type
(consumer, commercial, specialty finance) and by geography.
We further diversify our asset portfolio by industry, product and
collateral type to minimize concentration risk. In addition, we
require our loans and leases to be supported by collateral to
provide an alternate repayment source beyond cash flow from
the borrower, which helps mitigate losses. We emphasize credit
quality over asset growth as the costs of poor credit quality
far outweigh the benefits of unwise asset growth.
Conservative Underwriting TCF’s diversified asset portfolio
and our extensive credit review practices reduce our credit risks
while creating profitability and sustainable growth, even in the
most challenging economic environments. We extend credit to
high-quality customers and invest only in programs that add
value to the organization and yield solid returns.
Interest-rate Risk TCF believes interest-rate risk should
be minimized. Interest-rate speculation does not generate
consistent profits and is high risk.
Capital and Liquidity TCF focuses on prudent capital and
liquidity management which strengthens our capital position,
increases our borrowing capacity, and reduces our costs and
risks. We are solidly capitalized and have access to ample
liquidity to conduct business. TCF’s financial strength makes
us a safe and sound financial institution.
Expansion TCF grows both through de novo expansion and acqui-
sition. We are growing by starting and acquiring new businesses,
opening new branches and offering new products and services.
The Customer First TCF strives to place The Customer First.
We believe providing great service helps to retain existing custom-
ers, attract new customers, create value for our stockholders, and
build pride in our employees. We also respect customers’ concerns
about privacy and know they place their trust in us. TCF is com-
mitted to protecting the private information of our customers
and retaining that trust is our priority.
Stock Ownership TCF encourages stock ownership by our
officers, directors and employees. We have a mutuality of
interest with our stockholders, and our goal is to earn for
them an above-average return.
Technology TCF places a high priority on the development
of technology to enhance productivity, customer service and
new products. Properly applied technology increases revenue,
reduces costs and enhances customer service. We centralize
back office activities and decentralize the banking process.
Conservative Accounting TCF utilizes conservative
accounting and financial reporting principles that accurately
and honestly report our financial condition and results of
operations. We believe good accounting drives good business
decision-making.
Bank Regulators Bank regulators play an essential role in the
banking industry. TCF is committed to maintaining strong, positive
and professional working relationships with its regulators. Open
and effective communication with regulators throughout the
organization is essential to ensuring effective, efficient and
productive bank supervision.
Open Employee Communication TCF encourages open
employee communication and promotes from within whenever
possible. TCF places the highest priority on honesty, integrity
and ethical behavior.
Equal Treatment TCF does not discriminate against anyone
in employment or the extension of credit. As a result of TCF’s
community banking philosophy, we market our products and
services to everyone in the communities we serve.
Community Participation TCF believes in community
participation, both financially and through volunteerism.
We feel a responsibility to help those less fortunate.
Corporate Philosophy