TCF Bank 2012 Annual Report Download - page 141

Corporate Philosophy
Functionally Organized. TCF’s functionally organized management
structure emphasizes four key initiatives: 1) Enterprise Risk
Management, 2) Lending, 3) Funding and 4) Corporate Development.
This functionally organized management structure is supported by
focused profit center reporting and creates a highly responsive and
performance driven culture.
Shareholder Value. TCF focuses on increasing long-term shareholder
value by making sound business decisions, taking advantage of
marketplace opportunities, and preparing for various 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, including 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,
including TCF Free Checking. TCF uses Free Checking 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,
national lending) 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 through de novo expansion, acquisition, and
process improvement. We are growing by starting and acquiring new
businesses, opening new branches, offering new products and services,
and improving execution on sales efforts of existing products.
The Customer First. TCF strives to place The Customer First. We believe
providing great service helps to retain existing customers, 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 committed 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.
Employee Communication and Behavior. TCF encourages open
employee communication and places the highest priority on honesty,
integrity and ethical behavior.
Bank Regulators. Bank regulators play an essential role in the
banking industry. Open and effective communication with regulators
throughout the organization is essential to ensuring effective,
efficient and productive bank supervision. TCF is committed to
maintaining strong, positive and professional working relationships
with its regulators.
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.
Talent Management. TCF believes in fostering strong talent management
to attract highly skilled managers and employees and emphasizes offering
advancement opportunities to existing employees when appropriate.
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