TCF Bank 2007 Annual Report Download - page 7

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2007 – a positive trend which will favorably impact
future periods. TCF’s leasing and equipment finance
business is now one of the largest profit centers at TCF.
Power Liabilities totaled $9.58 billion as of December
31, 2007, a decline of $192.7 million. In the first quarter
of 2007, TCF sold $241 million of out-state Michigan
deposits. During the second half of 2007, deposit
competition intensified. Large banks with credit and
subprime issues raised their retail deposit rates in order
to replace other higher cost wholesale funding sources.
TCF chose not to match these higher rates, particularly
in certificates of deposit. This resulted in a decline
in balances in this category. While savings balances
increased in 2007 because of generally higher interest
rates, non-interest bearing checking balances declined.
6 . B r a n c h e s
In 2007, TCF sold its remaining out-state Michigan
branches and $241 million in deposits for an 11.5 per-
cent premium plus a related gain on the sale of branch
real estate. The total gain was $31.2 million. The sale
recognized that TCF’s convenience banking strategy
works better in densely populated urban areas, and
that we have other more attractive growth opportunities.
Our timing was excellent on the sale transaction and
we received a very attractive premium.
TCF opened 20 branches in 2007 (10 traditional, seven
supermarket and three campus). We also relocated six
branches and remodeled 15 branches. TCF closed 10
branches in addition to the Michigan branches we sold.
7. C a m p u s B a n k i n g
In 2007, TCF entered into a new exclusive campus
banking relationship with the University of Illinois.
The relationship will provide college students with
internet banking, bill payment capabilities and checking
account access through their i-cards™. The University
of Illinois has an annual enrollment of approximately
70,000 students.
Collectively, TCF’s campus banking network includes
over 123,000 accounts from students, faculty and staff.
With our recent school additions, prospect list and
pipeline of new students, we have a great opportunity
for new business in our campus banking division.
8 . O t h e r A s s e t S a l e G a i n s
In addition to the branch sale noted above, TCF
recognized $20 million in asset sale gains in 2007
compared to $5.8 million in 2006. The 2007 gains
included $13.3 million from the gains on sales of
securities and $6.7 million from the sales of branch
office real estate. The sales of branch office real estate
2007 Annual Report | page 5Letter to Stockholders