TCF Bank 2007 Annual Report Download - page 28

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8 | TCF Financial Corporation and Subsidiaries
Taxation
Federal Taxation The statute of limitations on TCF’s con-
solidated Federal income tax return is closed through 2003.
State Taxation TCF and/or its subsidiaries currently file
tax returns in all states which impose corporate income and
franchise taxes and local tax returns in certain cities and
other taxing jurisdictions. TCF’s primary banking activities
are in the states of Minnesota, Illinois, Michigan, Colorado,
Wisconsin, Indiana and Arizona. The methods of filing, and
the methods for calculating taxable and apportionable
income, vary depending upon the laws of the taxing juris-
diction. See “Risk Factors.”
See “Management’s Discussion and Analysis of Financial
Condition and Results of Operations – Consolidated Income
Statement Analysis – Income Taxes” and Notes 1 and 12 of
Notes to Consolidated Financial Statements for additional
information regarding TCF’s income taxes.
Available Information
TCF’s website, www.tcfbank.com, includes free access to
Company news releases, investor presentations, conference
calls to discuss published financial results, TCF’s Annual
Report and periodic filings required by the Securities and
Exchange Commission (“SEC”), including annual reports on
Form 10-K, quarterly reports on Form 10-Q, current reports
on Form 8-K and amendments to those reports.
TCF’s Compensation/Nominating/Corporate Governance
Committee and Audit Committee charters, Corporate
Governance Guidelines, Codes of Ethics and changes to Codes
of Ethics are also available on this website. Shareholders
may request these documents in print by contacting the
Corporate Secretary at TCF Financial Corporation, 200 Lake
Street East, Mail Code EX0-03-A, Wayzata, MN 55391-1693.
Item 1A. Risk Factors
Enterprise Risk Management
In the normal course of business, TCF is exposed to various
risks. Management balances the Company’s strategic goals,
including revenue and profitability objectives, with their
associated risks.
In defining the Company’s risk profile, management
organizes risks into three main categories: Credit Risk, Market
Risk (which includes interest-rate risk, liquidity risk, and
price risk) and Operational Risk (which includes transaction
risk and compliance risk). Policies, systems and procedures
have been adopted which are intended to identify, assess,
control, monitor, and manage risk in each of these areas.
Primary responsibility for risk management lies with the
heads of various business lines within the Company. Each
business line within the Company maintains policies, systems
and procedures which are intended to identify, assess, con-
trol, monitor, and manage risk within each area. Management
continually reviews the adequacy and effectiveness of these
policies, systems and procedures.
As an integral part of the risk management process,
management has established various committees consisting
of senior executives and others within the Company. The
purpose of these committees is to closely monitor risks
and ensure that adequate risk management practices exist
within their respective areas of authority. Some of the
principal committees include the Credit Policy Committee,
Asset/Liability Management Committee (“ALCO”), Investment
Committee, Capital Planning Committee and various financial
reporting and compliance-related committees. Overlapping
membership of these committees by senior executives and
others helps provide a unified view of risk on an enterprise-
wide basis.
To provide an enterprise-wide view of the Company’s risk
profile, an enterprise risk management governance process
has been established. This includes appointment of an
Enterprise Risk Management Officer, who oversees the process
and reports on the Company’s risk profile. Additionally, risk
officers are assigned to each significant line of business.
The risk officers, while reporting directly to their respective
line, facilitate implementation of the enterprise risk man-
agement and governance process. An Enterprise Risk
Management Committee has been established consisting of
senior executives and others within the Company, which over-
sees and supports the Enterprise Risk Management Officer.
The Board of Directors, through its Audit Committee,
has overall responsibility for oversight of the Company’s
enterprise risk management governance process.