TCF Bank 2007 Annual Report Download - page 14

Download and view the complete annual report

Please find page 14 of the 2007 TCF Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 114

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114

page 12 | TCF Financial Corporation and Subsidiaries Business Highlights
stored value card for vending machines and other local mer-
chants. TCF now has over 123,000 campus deposit accounts
and looks forward to continuing to grow this business.
TCF’s strategy for convenience banking remains the corner-
stone of our success. Our goal is to make the banking
experience available and comfortable for our diverse and
growing customer base. Our extended branch network offers
longer banking hours, assorted products and services, and
convenience technology to serve our valued customers.
TCF is primarily a secured lender and
emphasizes credit quality over asset
growth. The costs of poor credit far
outweigh the benefits of unwise
asset growth.
Much of TCF’s success over the years can be attributed to its
philosophy of secured lending based on conservative under-
writing and a disciplined credit approval process. Add this
philosophy to a hard working and well-trained staff with a
well organized and customer focused backroom operation,
and you have the formula to earn profits, grow your portfo-
lios and service your customers well.
In 2007, TCF grew Power Assets by $1.1 billion, or 10 percent.
TCF tightened its credit standards in consumer home equity
lending as a result of the significant turmoil in the housing
sector and still managed to grow this portfolio by 11 percent,
or $640 million, in 2007. The banking industry saw increases
in delinquencies, non-performing assets and charge-offs
during 2007. The highly publicized subprime industry lending
problem, along with ill-advised option rate loans, caused
increases in loan defaults which led to more foreclosures,
higher home inventories and eventually deterioration in
home values in almost every market. In addition, the liquidity
crunch reduced the number of lenders in the mortgage arena,
leaving many potential home buyers without access to
credit. While TCF did not participate in any of these risky
loan programs, TCF’s credit quality was impacted by the
depressed housing markets.
TCF’s commercial lending business was also able to increase
its portfolio by six percent during 2007. In recent years with
the market flush with liquidity, we saw bank and non-bank
competitors competing for transactions in this business
with irrational loan pricing and terms. The liquidity crunch
has brought sanity back to this business, with many non-
bank competitors being eliminated.