TCF Bank 2007 Annual Report Download - page 16

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page 14 | TCF Financial Corporation and Subsidiaries Business Highlights
TCF has earned high profits for many years due to its conser-
vative approach to banking and as a result, has generated
excess capital greater than that required to support balance
sheet growth. We feel the best use of excess capital is to
return it to our stockholders in the form of either dividends
or stock repurchases. TCF has been able to increase its divi-
dends for the past seventeen consecutive years. In fact, our
dividend policy has been recognized by Standard & Poor’s®
and was added to the Dow Jones U.S. Select Dividend IndexSM
.
TCF’s stock repurchase program has been active since 1998
and 65.5 million shares have been repurchased at an average
cost of $19.14 per share. In 2007, TCF’s board of directors
authorized a new program for TCF to acquire up to an addi-
tional 5 percent of TCF stock, or approximately 6.5 million
shares. Stock repurchase may slow in the coming years as
TCF may have to retain more capital to support its asset
growth. Overall, TCF has returned 90 percent of its net income
to stockholders in dividends and stock repurchases over
the last five years.
TCF has consistently exceeded its regulatory capital require-
ments in Tier 1, leverage and risk-based capital. TCF is
considered “well-capitalized” by both the Office of the
Comptroller of the Currency (OCC) and the Federal Reserve
Board, and has stable or above ratings from Moody’s®
, Fitch®
and Standard & Poor’s®
.
TCF operates like a partnership. We’re
organized geographically and by
function, with profit center goals and
objectives. TCF emphasizes return on
average assets, return on average
equity and earnings per share growth.
We know which products are profitable
and contribute to these goals. Local
geographic managers are responsible
for local business decisions, business
development initiatives, customer
relations, and community involvement.
Managers are incented to achieve
these goals.
A strong management team is needed to truly operate as
a retail business offering convenient services, innovative
products and good service. One of TCF’s most important
assets is its management bench strength and depth. Each
of the bank presidents is responsible for the financial goals