TCF Bank 2007 Annual Report Download - page 9

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11 . I n c o m e Ta x e s
Income taxes were lower than planned in 2007 due to
favorable tax developments including the closing of
certain previous years’ tax returns, changes in state tax
laws, and positive developments in income tax audits.
2008 Focus Areas and Concerns
1 . T h e Y i e l d C u r v e a n d I n t e r e s t R a t e s
The strong headwinds continue and make this area
very challenging to manage. The current credit crunch
and liquidity crisis has crept into deposit pricing and
increased our deposit costs. Further Federal Reserve
Board interest rate cuts may be difficult to offset through
lower deposit rates.
2 . C r e d i t Q u a l i t y
Economic conditions are always a major risk for all
banks, including TCF. A recession would adversely
impact our results through increased loan and lease
charge-offs and higher loss provisions. Further deterio-
ration in home values is also a risk. We expect TCF’s
credit quality to deteriorate modestly in 2008 with
somewhat higher charge-off levels. Our risk is elevated
in this area due to the weak Michigan economy and
depressed housing market.
3 . R e t a i l B a n k i n g
In 2008, we are refocusing our retail banking efforts to
improve the quality of our deposit accounts and grow
deposit balances. Active checking account customers
produce higher revenues and have lower attrition rates.
We have enhanced our internal reporting and changed
employee incentives to influence their behavior.
Growing deposits in this economic climate is going to
be very difficult.
Retail banking is an important area for our company
and one with significant future financial benefits.
This is a high priority item for our entire management
team in 2008.
2007 Annual Report | page 7Letter to Stockholders
Retail banking is an important area for
our company and one with significant future
financial benefits.
12/07
141
12/06
123
12/05
104
12/04
76
12/03
46
12/02
27
Total New
Branches
Number of Branches
■Supermarket Branches
■Traditional and Campus Branches
Branches opened since January 1, 2002.