TCF Bank 2003 Annual Report Download - page 12

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10 TCF Financial Corporation and Subsidiaries
STRATEGIES
In 1989, TCF Chairman and CEO Bill Cooper sat down with a group of TCF
executives to commit to writing the underlying banking philosophies
that has guided TCF’s business strategies. These strategies have
become the principles by which TCF conducts its business. TCF’s long-
term strategies for growth are somewhat unique among our competi-
tors, however they have served and continue to serve our customers
and shareholders well.
TCF’s strategies begin with the premise that every customer is valu-
able, and we must listen to them. We are “The Leader in Convenience
Banking,” and we use our premier convenience services to attract
a large and economically diverse customer base. Each of our many
customers contributes incrementally to our revenue. TCF does not
believe in focusing only on one “profitable” customer segment. Every
customer is potentially profitable and may become more so over time.
TCF provides convenience to our large and growing customer base by
being open longer hours seven days a week and open on most holidays.
TCF offers a large supermarket branch network, complemented by
traditional branches, providing customers with alternative locations
to conduct their banking. TCF’s free on-line banking services, exten-
sive ATM network and automated telephone service provide even more
convenient options – meeting customers needs. Adding new branches
where they can best support and increase our customer base, and
introducing new and enhancing existing products or services, are
strategies that have worked well for TCF over the last decade.
Since 1989, TCF has placed equal emphasis on what it defines as Power
Assets (higher-yielding consumer loans, commercial loans and leas-
ing assets) and Power Liabilities (lower-cost checking, savings, money
market and certificate of deposit accounts). A principle strategy of
TCF’s Power Assets is that TCF lends on a secured basis. Our strong
credit quality is evidence that this important strategy is working. TCF
has one of the lowest charge-off ratios in the banking industry. Power
Liabilities are proven profit drivers at TCF. By focusing on both Power
Assets and Power Liabilities, we recognize the important contributions
to overall profitability by both the liability and asset side of the bal-
ance sheet. Earning at least one percent on each side of the balance
sheet, we can provide synergistic earnings greater than two percent
in total.
TCF’s superior earnings performance allows us to regularly buy back
our own stock. In evaluating potential acquisitions, we look at the
stock buy back opportunity as an acquisition alternative that can
provide superior results. Investing in our own stock has been good for
TCF and its shareholders.
Planning for Growth Simple, straightforward,
and enduring strategies, which are based on a well-
grounded philosophy coupled with successful execution
and solid management, have made TCF one of the top
performing banks in the country.