TCF Bank 2014 Annual Report Download - page 14

Part I
Item 1. Business
General
TCF Financial Corporation (together with its subsidiaries, ‘‘TCF’’ or the ‘‘Company’’), a Delaware corporation incorporated on
April 28, 1987, is a national bank holding company based in Wayzata, Minnesota. Its principal subsidiary is TCF National Bank
(‘‘TCF Bank’’), which is headquartered in Sioux Falls, South Dakota. TCF Bank operates bank branches in Illinois, Minnesota,
Michigan, Colorado, Wisconsin, Arizona, South Dakota and Indiana (TCF’s primary banking markets). TCF delivers retail banking
products in over 40 states and commercial banking products mainly in TCF’s primary banking markets. TCF also conducts
commercial leasing and equipment finance business in all 50 states and, to a limited extent, in foreign countries; commercial
inventory finance business in all 50 states and Canada and, to a limited extent, in other foreign countries and indirect auto finance
business in all 50 states. TCF generated total revenue, defined as net interest income plus total non-interest income, of
$1.2 billion in the U.S. in each of 2014, 2013 and 2012. International revenue was $27.9 million, $25.3 million and $21.3 million in
2014, 2013 and 2012, respectively.
TCF had total assets of $19.4 billion as of December 31, 2014 and was the 45th largest publicly traded bank holding company in
the United States based on total assets at September 30, 2014. References herein to the ‘‘Holding Company’’ or ‘‘TCF Financial’’
refer to TCF Financial Corporation on an unconsolidated basis.
TCF provides convenient financial services through multiple channels in its primary banking markets. TCF has developed
products and services designed to meet the specific needs of the largest consumer segments in the market. The Company
focuses on attracting and retaining customers through service and convenience, including branches that are open seven days a
week in all markets and on most holidays, extensive full-service supermarket branches, automated teller machine (‘‘ATM’’)
networks and internet, mobile and telephone banking. TCF’s philosophy is to generate interest income, fees and other revenue
growth through business lines that emphasize higher yielding assets and low interest cost deposits. TCF’s growth strategies
include organic growth in existing businesses, development of new products and services, new customer acquisition through
electronic channels and acquisitions of portfolios or companies. New products and services are designed to build on existing
businesses and expand into complementary products and services through strategic initiatives. TCF continues to focus on asset
growth in its leasing and equipment finance, inventory finance and auto finance businesses funded through deposit generation,
as well as expanding its junior lien lending business.
TCF’s reportable segments are comprised of Lending, Funding and Support Services. Lending includes consumer real estate,
commercial real estate and business lending, leasing and equipment finance, inventory finance and auto finance. Funding
includes branch banking and treasury services, which includes the Company’s investment and borrowing portfolios and
management of capital, debt and market risks, including interest rate and liquidity risks. Support Services includes Holding
Company and corporate functions that provide data processing, bank operations and other professional services to the operating
segments. See ‘‘Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
(‘‘Management’s Discussion and Analysis’’) – Results of Operations – Reportable Segment Results’’ and Note 22 of Notes to
Consolidated Financial Statements, Business Segments, for information regarding revenue, income and assets for each of TCF’s
reportable segments.
Lending
TCF’s lending strategy is to originate diversified portfolios of high credit quality, primarily secured, loans and leases.
Consumer Real Estate TCF makes consumer loans for personal, family or household purposes, such as home purchases, debt
consolidation and financing of home improvements. TCF’s retail lending origination activity primarily consists of consumer real
estate secured lending. It also includes originating loans secured by personal property and, to a very limited extent, unsecured
personal loans. Consumer loans are made on a fixed-term basis or as a revolving line of credit. Loans are originated for
investment and for sale to third party financial institutions. TCF does not have any consumer real estate subprime lending
programs. TCF continues to expand its junior lien lending business through the development of a national lending platform
focused on junior lien loans to high credit quality customers.
Commercial Real Estate and Business Lending Commercial real estate loans are loans originated by TCF that are secured by
commercial real estate, including multi-family housing, retail services, office buildings, warehouse and industrial buildings, health
care facilities and commercial real estate construction loans, mainly to borrowers based in its primary banking markets.
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