TCF Bank 2005 Annual Report Download - page 7

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52005 Annual Report
demographics. We are excited about
this expansion opportunity.
We believe TCF’s de novo strategy is a
better use of capital than paying high
premiums for bank acquisitions. While
we always review acquisition opportuni-
ties, we intend to stick to this disciplined
approach in 2006.
Strategy
Our formula for success over the coming
years remains the same:
1. It’s all about convenience for our cus-
tomers. We are “Open 7 Days” and longer
hours in our branches. We have a large
and growing number of branch locations
and ATMs conveniently located for our
many customers. This is still a major
competitive advantage for TCF.
2. We will continue to grow through de
novo expansion of branches, products
and lines of business.
3. A large portion of our profits will be
earned through the liability side of the
balance sheet (deposits). We will
continue to focus on growing both
accounts and deposits in the future.
4. We will emphasize growing Power
Assets and Power Liabilities. This simple
strategy has produced Power Profits
and made TCF an industry leader.
5. We will continue to repurchase TCF stock;
however, repurchases may slow in future
years due to our balance sheet growth.
6. We will continue to focus on the devel-
opment of management and employee
talent. People make the difference.
In order to continue our success, we must
move faster, innovate and customize our
products, and give great service to our
customers. All of these things are easy
to say, hard to do. Execution is the key
to success.
Risks
Major issues to focus on in 2006 are a
flat or inverted yield curve, our continu-
ing de novo expansion, and checking
account dynamics, including fee income.
A particular concern for TCF is the intense
competition for checking accounts. Almost
all banks have now copied our Totally
Free Checking product. This impact was
felt in 2005 with a slowing growth in
checking accounts. We must find new
and better ways to beat the competition
in this area. Furthermore, checking
account behavior is changing. How people
Net Income
millions of dollars
0504030201
$207
$233
$216
$255
$265
Net Interest Income
millions of dollars
0504030201
$481
$499
$481
$492
$518