TCF Bank 2012 Annual Report Download - page 13

The potential rule-making of enforcement actions
from the Consumer Financial Protection Bureau
could have a significant impact on the entire
industry, including TCF. The unpredictability
of future actions leads to uncertainty within the
banking industry.
In Closing
TCF made great progress in 2012 positioning
the company for success moving into 2013. We
recognized the challenges facing the company and
have taken proactive steps to address them. It is now
up to us to execute on our initiatives and increase
stockholder value. I am confident that we have the
right team and the strategy in place to achieve this
goal. While this has certainly been a challenging few
years for TCF, I feel good about where we are going.
We continue to have an alignment with our stock-
holders as our senior management and board of
directors own over 6.7 million shares, or 4.1 percent
of TCF stock. 81.3 percent of our eligible employees
participate in the TCF Employees Stock Purchase
Plan, which at year-end held over 8.5 million shares.
I would like to take a moment to thank our board of
directors for their hard work and counsel. I am very
proud of this group. I appreciate the exceptional
leadership and guidance they have provided over
the years and I look forward to working with them
as we enter 2013.
I would also like to give a special thank you to all
of our employees. This has been a very busy year
focused on building and investing at every level
of the bank. It is because of their hard work and
dedication that I am optimistic about the future.
I am proud of our team and the achievements in
2012 and expect the same level of effort in 2013
as we execute on our strategies.
Thank you for your continued support and
investment in TCF.
William A. Cooper
Chairman and Chief Executive Officer
to higher levels, banks will be challenged to
improve their performance.
• Managing interest-rate risk given the continued
depressed interest rates with an eye toward the
possibility of rapidly increasing rates in the future
continues to be a risk management focus.
• The competitive landscape in the banking industry
remains unsettled. TCF chose to expand its auto
finance and inventory finance businesses, as well as
to bring back its free checking product in 2012 while
other banks are looking at other strategic options.
The profitability of banks can be impacted by both
the strategic decisions made by other banks as well
as the public perception of the industry as a whole.
• TCF takes great pride in listening to and under-
standing its customer base. That said, there is
always some level of uncertainty regarding
consumer behavior when product or service
changes are made. We will continue monitoring
consumer behavior as we evaluate existing
products and introduce new products so that they
fit the needs of our customers.
• SUPERVALU®
, TCF’s supermarket partner and
operator of grocery store chains Cub® Foods in
Minnesota and Jewel-Osco® in Chicago, recently
announced a definitive agreement to sell five of its
grocery chains, including Jewel-Osco, to an invest-
ment group led by Cerberus Capital Management.
Cub Foods was not part of the transaction. With this
acquisition, TCF will seek to work closely with the
buyer to determine how the Jewel-Osco chain will
partner with TCF going forward. TCF maintains a
strong relationship with both Cub Foods and
Jewel-Osco and we continue to believe that the
partnership provides significant value for both parties.
• Growth of our national lending businesses is
challenging in a competitive environment. While we
have the track record and experience to successfully
operate these businesses, it will be important to
stay focused on our customers’ needs and compete
on price, structure, terms and service every day.
• Congressional and regulatory actions continue
to create uncertainty in the banking industry.
{ 2012 Annual Report } { 11 }