TCF Bank 2012 Annual Report Download - page 31

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Item 1B. Unresolved Staff
Comments
None.
Item 2. Properties
Offices At December 31, 2012, TCF owned the buildings
and land for 144 of its bank branch offices, owned
the buildings but leased the land for 23 of its bank
branch offices and leased or licensed the remaining
261 bank branch offices, all of which are functional and
appropriately maintained and are utilized by both the
Lending and Funding reportable segments. Bank branch
properties owned by TCF had an aggregate net book value
of approximately $274.6 million at December 31, 2012.
At December 31, 2012, the aggregate net book value of
leasehold improvements associated with leased bank
branch office facilities was $17.7 million. In addition to the
branch offices, TCF owned and leased other facilities with
an aggregate net book value of $62.2 million at December
31, 2012. For more information on premises and equipment,
see Note 8 of Notes to Consolidated Financial Statements.
Item 3. Legal Proceedings
From time to time, TCF is a party to legal proceedings
arising out of its lending, leasing and deposit operations.
TCF is, and expects to become, engaged in a number of
foreclosure proceedings and other collection actions as
part of its lending and leasing collections activities. TCF
may also be subject to enforcement action by federal
regulators, including the SEC, the Federal Reserve, the
OCC and the CFPB. From time to time, borrowers and other
customers, employees and former employees, have also
brought actions against TCF, in some cases claiming
substantial damages. Financial services companies are
subject to the risk of class action litigation, and TCF is
subject to such actions being brought against it from
time to time. Litigation is often unpredictable and the
actual results of litigation cannot be determined with
certainty, and therefore the ultimate resolution of a
matter and the possible range of loss associated with
certain potential outcomes cannot be established. Based
on our current understanding of these pending legal
proceedings, management does not believe that judgments
or settlements arising from pending or threatened legal
matters, individually or in the aggregate, would have a
material adverse effect on the consolidated financial
position, operating results or cash flows of TCF. TCF is also
subject to regulatory examinations and TCF’s regulatory
authorities may impose sanctions on TCF for a failure to
maintain regulatory compliance. TCF Bank is currently
subject to a Consent Order, dated July 20, 2010, with the
OCC relating to identified instances of non-compliance
with the Bank Secrecy Act of 1970 (“Bank Secrecy Act”)
that constituted a program violation. On January 25, 2013,
TCF entered into a settlement agreement with the OCC
related to TCF’s past compliance with the Bank Secrecy
Act, pursuant to which TCF agreed to pay a $10 million
civil money penalty. TCF Bank is implementing or has
implemented corrective action for each deficiency and
expects to satisfy all of the requirements of the Consent
Order in a timely fashion.
Item 4. Mine Safety Disclosures
Not applicable.
{ 2012 Form 10K } { 15 }