TCF Bank 2011 Annual Report Download - page 9

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1972
In 1972, TCF eclipsed $1 billion in total assets. Today, TCF
has nearly $19 billion in total assets including a loan and lease
portfolio that is well-diversied by both type and geography.
Retail lending loan balances totaled
$6.9 billion at year-end, down 3.7
percent from 2010. With the continued
depressed home values and a more
competitive environment for borrowers
who meet TCF’s underwriting criteria,
we have reduced the consumer real
estate portfolio and made investments
in other higher-yielding asset catego-
ries. Despite the current economic
conditions, TCF continued to fund new
consumer real estate loans to credit-
worthy customers during 2011. The
new loans have performed well with
low delinquencies and minimal
charge-offs. We expect to have more
opportunities to add loans in this
portfolio as home values stabilize.
Wholesale Banking
TCF’s Wholesale Banking division
consists of commercial banking and
specialty finance (TCF Equipment
Finance, Winthrop Resources
Corporation, TCF Inventory Finance
and Gateway One). Loan balances
decreased 5.4 percent in our commercial
portfolio, which totaled $3.4 billion at
year-end, largely due to higher levels
of payments exceeding increased
new origination volume. Demand
for commercial loans has remained
somewhat tempered by the sluggish
economy but we are seeing some signs
of growing demand. We saw many of
our peers being much more competi-
tive from a pricing perspective on the
commercial deals that were available
during the year. As a result of our
various avenues for asset growth
in specialty finance, we have not
been forced to compete for deals
with substandard pricing. Overall, our
commercial portfolio is performing well
in the current economic environment
largely as a result of our conservative
underwriting philosophy and our
commitment to relationship banking
with long-term customers.
Loan and lease balances in specialty
finance decreased 4.5 percent to $3.8
billion at year-end. In specialty finance,
home to TCF’s highest yielding loans
and leases, we were able to minimize
concentration risk by diversifying our
businesses by industry, transaction
size, geography and collateral type.
We continue to emphasize specialty
finance as a key vehicle for asset
growth because of our proven expertise
in acquiring, integrating and operating
these national niche businesses.
TCF’s leasing and equipment finance
business balances decreased by
.4 percent from 2010 as past portfolio
purchases continue to run off. Excluding
this run-off activity, the core portfolio
continues to grow as balances increased
6 percent from 2010. Our $3.1 billion
leasing and equipment finance portfolio
is well-diversified by equipment type,
transaction size and geography.
Our leasing and equipment finance
operation, which is comprised of TCF
Equipment Finance and Winthrop
Resources Corporation, is the 28th
largest in the U.S. and the 13th largest
bank-affiliated leasing company in
the U.S. Despite the overall decrease
in leasing and equipment finance
balances, 2011 originations were up
19.2 percent from 2010. Future growth
opportunities are strong as we have an
uninstalled backlog of $455.3 million
at year-end. The portfolio is currently
yielding 6 percent.
TCF Inventory Finance, Inc. (TCFIF)
continues to be a business where we
052011 Annual Report