TCF Bank 2009 Annual Report Download

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TCF Financial Corporation 2009 Annual Report
Built on convenience, stability and trust.

Table of contents

  • Page 1
    TCF Financial Corporation 2009 Annual Report Built on convenience, stability and trust.

  • Page 2
    ... 11 Board of Directors 12 Financial Highlights Annual Report on Form 10-K 1 16 17 46 50 79 92 95 97 Business Selected Financial Data Management's Discussion and Analysis Consolidated Financial Statements Notes to Consolidated Financial Statements Other Financial Data Corporate Information...

  • Page 3
    ...backed commercial paper, structured investment vehicles, or other off-balance-sheet programs. TCF has no auto or credit card portfolios. TCF has never owned FANNIE MAE® or Freddie Mac preferred stock, trust preferred securities ® offering, secured lending, prudent capital and liquidity management...

  • Page 4
    ...• TCF reorganized its day-to-day operations by business lines: Retail Banking (branch banking and retail lending), Wholesale Banking (commercial banking, leasing and equipment finance, and inventory finance), Treasury Services and Support Services. Each business line has its own profit center...

  • Page 5
    ...-assisted transaction if it fits within the scope of our business and growth plans. We also intend to continue our successful branch relocation and remodel programs during the year. Consumer real estate loan growth remained relatively ï¬,at in 2009 and totaled $7.3 billion at year-end. Our asset...

  • Page 6
    ... economic conditions. While disappointed, we remained profitable in most of our major business lines. In 2009, TCF's consumer real estate delinquencies and net charge-offs continued to increase as credit deterioration spread from subprime to prime mortgages. Lower home values, reduced availability...

  • Page 7
    ... with service charges scheduled to go into effect July 1, 2010. The rule will require banks to either obtain advance approval from customers to charge a fee for covering debit card and ATM transactions that create an overdraft on the account, or reject those payments at the point-of-sale. TCF has...

  • Page 8
    ... to TCF's ranking as the 10th largest Visa® Classic debit card issuer in the United States. A strong fee category in 2009 was leasing and equipment finance revenues, which totaled $69.1 million, up 25 percent, from the prior year. Both operating lease revenues and customer-driven sales-type lease...

  • Page 9
    ...growth momentum in loans, leases and deposits. With fewer competitors in the market on both the deposit side and the lending side, now is an opportune time to capture deposit customers through premium campaigns, new products and cross-sell initiatives while lending to creditworthy customers. trust...

  • Page 10
    8 : TCF Financial Corporation and Subsidiaries TCF Bank Stadium TCF Bank Stadium, the new home of the University of Minnesota's Golden Gopher football team, opened its doors on September 12, 2009. It was a proud moment in history for TCF, the University of Minnesota and members of our community. As...

  • Page 11
    2009 Annual Report : 9 Deposit gathering and loan and lease production are the bread and butter of TCF, and a high priority for our entire management team in 2010. Checking account growth provides a low-cost funding base and drives future deposit fee income. • and card service fees. Litigation ...

  • Page 12
    ... fee revenue. In addition, changes to our product and service offerings in response to potential legislative changes could have an impact on customer banking preferences in the future. • Growth expectations of our new inventory finance business may not be achieved. This new line of business...

  • Page 13
    ...Chair, University of Minnesota Foundation, Former Acting President, Wellesley College Director since 1988 CPA/Managing Director, George Johnson & Company Director since 1998 President and Chief Executive Officer, Key Investment, Inc. Director since 2009 Vice Chairman and Secretary, TCF Financial...

  • Page 14
    ...31, (Dollars in thousands, except per-share data) 2009 2008 % Change Operating Results: Net interest income Provision for credit losses Net interest income after provision for credit losses Non-interest income: Fees and other revenue Gains on securities, net Visa share redemption Total non-interest...

  • Page 15
    ... 200 Lake Street East, Mail Code EX0-03-A, wayzata, Minnesota 55391-1693 (Address of principal executive offices and zip code) Registrant's telephone number, including area code: 952-745-2760 Securities registered pursuant to Section 12(b) of the Act: Common Stock (par value $.01 per share) New York...

  • Page 16
    ... 14. Directors, Executive Officers and Corporate Governance Executive Compensation Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Certain Relationships and Related Transactions, and Director Independence Principal Accounting Fees and Services 82 83...

  • Page 17
    ..., is a financial holding company based in Wayzata, Minnesota. Its principal subsidiary is TCF National Bank ("TCF Bank"), which is headquartered in Sioux Falls, South Dakota. TCF Bank operates bank branches in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana, Arizona and South Dakota (TCF...

  • Page 18
    ... to a limited extent, unsecured personal loans. Consumer loans may be made on a revolving line of credit or fixed-term basis. TCF does not have any subprime lending programs nor has it originated 2/28 adjustable-rate mortgages (ARM) or option ARM loans. Commercial Real Estate Lending Commercial real...

  • Page 19
    ...checking, savings, money market and certificate of deposit accounts. These accounts are a source of low-interest cost funds and provide significant fee income. Information concerning TCF's deposits is set forth in "Management's Discussion and Analysis of Financial Condition and Results of Operations...

  • Page 20
    ... for deposits comes from institutions selling money market mutual funds and corporate and government securities. TCF competes for the origination of loans with banks, mortgage bankers, mortgage brokers, consumer and commercial finance companies, credit unions, insurance companies and savings...

  • Page 21
    ...Condition Analysis - Liquidity Management" and Notes 13 and 14 of Notes to Consolidated Financial Statements. Regulation of TCF and Affiliates and Insider Transactions TCF Financial is subject to FRB regulations, examinations and reporting requirements relating to bank or financial holding companies...

  • Page 22
    ... seven years. TCF Bank paid a FDIC special assessment of $8.2 million in 2009 in addition to higher premium rates. On November 12, 2009, the FDIC adopted a final rule requiring depository institutions to prepay their estimated quarterly insurance premium for fourth quarter 2009 and all of 2010, 2011...

  • Page 23
    ... 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, Arizona and South Dakota. The...

  • Page 24
    ... line of business. The risk officers, while reporting directly to their respective line, facilitate implementation of the enterprise risk management and governance process. An Enterprise Risk Management Committee consisting of senior executives and others within the Company, oversees and supports...

  • Page 25
    ... simulation analyses are based on various key assumptions which relate to the behavior of interest rates and spreads, changes in product balances, the repricing characteristics of products, and the behavior of loan and deposit customers in different rate environments. The simulation analyses do not...

  • Page 26
    ... reviews current and forecasted funding needs for the Company and periodically reviews market conditions for issuing debt securities to wholesale investors. Key liquidity ratios and the amount available from alternative funding sources are reported to ALCO on a monthly basis. Deposits are TCF...

  • Page 27
    ... new and retain existing deposit account customers. New Product TCF recently introduced a new anchor retail deposit account product that replaces TCF Totally Free Checking, and that calls for a monthly maintenance fee on accounts not meeting certain specific requirements. TCF is also in the process...

  • Page 28
    ..., results of operations, and financial condition. The financial services industry is extensively regulated. Federal and state laws and regulations are designed primarily to protect the deposit insurance funds and consumers, and not necessarily to benefit a financial company's stockholders. These...

  • Page 29
    ...suspicious activity reports with the U.S. Treasury's Office of Financial Crimes Enforcement Network. These rules require financial institutions to establish procedures for identifying and verifying the identity of customers seeking to open new accounts. Failure to comply with these regulations could...

  • Page 30
    ... $.25 .25 .25 .25 As of January 29, 2010, there were 7,577 holders of record of TCF's common stock. The Board of Directors of TCF Financial has adopted a Capital Plan and Dividend Policy. The policy defines how enterprise risk related to capital will be managed, how the adequacy of capital will be...

  • Page 31
    ...Inc.; SVB Financial Group; East West Bancorp, Inc.; South Financial Group, Inc.; and Bank of Hawaii Corporation. Seven of the companies, which were in the 2008 TCF Peer Group, are not in the 2009 Peer Group due to the failure of the company or changes in asset size. Those seven companies are: Hudson...

  • Page 32
    ...At December 31, (Dollars in thousands, except per-share data) Loans and leases Securities available for sale Total assets Checking, savings and money market deposits Certificates of deposit Total deposits Borrowings Equity Book value per common share Key Ratios and Other Data: 2009 2008 2007 2006...

  • Page 33
    ... company based in Wayzata, Minnesota. Its principal subsidiary, TCF National Bank, is headquartered in South Dakota. TCF had 443 banking offices in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana, Arizona and South Dakota at December 31, 2009. TCF provides convenient financial services...

  • Page 34
    ... interchange revenue from customer card transactions paid primarily by merchants, not TCF's customers. Card products represent 23.3% of banking fee revenue for the year ended December 31, 2009, and change based on customer payment trends and the number of deposit accounts using the cards. Visa has...

  • Page 35
    .... Retail Banking non-interest income totaled $418 million in 2009, as compared with $419.9 million in 2008. Fees and service charges were $282.3 million for 2009, up 6.7% from $264.6 million in 2008, primarily due to an increased number of checking accounts and related fee income. Card revenues were...

  • Page 36
    ... Ended December 31, 2009 Year Ended December 31, 2008 Change (Dollars in thousands) Assets: Investments and other U.S. Government sponsored entities: (2) Mortgage-backed securities Debentures Other securities Total securities available for sale (3) Loans and leases: Consumer real estate: Fixed-rate...

  • Page 37
    ... Year Ended December 31, 2007 Change Average (Dollars in thousands) Assets: Investments and other U.S. Government sponsored entities: (2) Mortgage-backed securities Debentures Other securities Total securities available for sale (3) Loans and leases: Consumer real estate: Fixed-rate Variable-rate...

  • Page 38
    ...) - (406) Total securities available for sale (3,102) (18,417) - (21,519) Loans and leases: Consumer real estate: Fixed-rate (7,072) (15,640) (955) (23,667) Variable-rate 9,091 (10,925) (293) (2,127) Consumer - other (7,911) 1,747 (8) (6,172) Commercial real estate: Fixed- and adjustable-rate 27,528...

  • Page 39
    ... income. Year Ended December 31, (Dollars in thousands) Fees and service charges Card revenue ATM revenue Subtotal Leasing and equipment finance Other Fees and other revenue Gains on securities, net Gains on sales of branches and real estate Visa share redemption Total non-interest income Fees and...

  • Page 40
    ... forth information about TCF's card business. (Dollars in thousands) Average number of checking accounts with a TCF card Average active card users Average number of transactions per card per month Sales volume for the year ended: Off-line (Signature) On-line (PIN) Total Average transaction size (in...

  • Page 41
    ..., (Dollars in thousands) Compensation and employee benefits Occupancy and equipment Deposit account premiums Foreclosed real estate and repossessed assets, net FDIC premiums and assessments Advertising and marketing Other Subtotal Operating lease depreciation Visa indemnification expense Total non...

  • Page 42
    ... the annual effective income tax rate is applied year-to-date in the period of enactment. As discussed under "Item 1A. Risk Factors", TCF uses a REIT and related companies in the management of qualified real estate secured assets. In the third quarter of 2009, TCF received notice from a state taxing...

  • Page 43
    ...(2) Compound Annual Growth Rate 1-Year 5-Year 2009/2008 2009/2004 (1.5)% 3.9 (.3) (17.8) (.4) 9.5 (11.3) 6.5 23.5 N.M. 9.3 7.2% 3.2 6.2 (24.6) 5.5 8.7 .6 7.5 17.4 N.M. 8.8 Excludes fixed-term amounts under lines of credit which are included in closed-end loans. Excludes operating leases included...

  • Page 44
    .... TCF's closed-end consumer real estate loans require payments of principal and interest over a fixed term. The average home value, which is based on original values securing the loans and lines of credit in this portfolio, was $250 thousand as of December 31, 2009. TCF's consumer real estate lines...

  • Page 45
    ... 31, 2009. TCF continues to expand its commercial lending activities generally to borrowers located in its primary markets. With a focus on secured lending, approximately 99% of TCF's commercial real estate and commercial business loans were secured either by properties or other business assets at...

  • Page 46
    ...TCF's leasing and equipment finance portfolio by marketing segment and by equipment type, excluding operating leases. At December 31, (Dollars in thousands) 2009 Over 30-Day Delinquency as Percent a Percentage of Total of Balance 47.7% 1.66% 26.6 2.56 18.8 .81 6.9 .03 100.0% 1.62% 2008 Over 30-Day...

  • Page 47
    2009 Form 10-K : 31 sales-type revenue at the end of the contractual lease term. See Note 1 of Notes to Consolidated Financial Statements - Policies Related to Critical Accounting Estimates for information on lease accounting. At December 31, 2009 and 2008, $254.9 million and $56.3 million, ...

  • Page 48
    ... to other banks. Most of TCF's non-performing assets and past due loans are secured by real estate. Given the nature of these assets and the related mortgage foreclosure, property sale and, if applicable, mortgage insurance claims processes, it can take 18 months or longer for a loan to migrate...

  • Page 49
    ...Consumer real estate First mortgage lien Junior lien Total consumer real estate Consumer other Total consumer Commercial real estate Commercial business Leasing and equipment finance Inventory finance Total recoveries Net charge-offs Provision charged to operations Balance at end of year 2009 $ 172...

  • Page 50
    ...due to the addition of 707 new properties exceeding sales of 596 properties in 2009, as the average amount of time to sell properties has increased from 4.2 months in 2008 to 4.6 months in 2009. The consumer real estate portfolio is secured by a total of 88,609 properties of which 504, or .57%, were...

  • Page 51
    ... the Year Ended December 31, 2009 Balance, beginning of period Additions Charge-offs Transfers to real estate owned or repossessed equipment Return to accrual status Payments Other, net Balance, end of period Consumer $ 82,936 223,785 (43,180) (85,944) (30,274) (6,136) (1,887) $139,300 Commercial...

  • Page 52
    ... types of used equipment in the marketplace and the fair value or ultimate sales prices at disposition. TCF periodically determines the fair value of this equipment and, if lower than its recorded basis, makes adjustments. Impaired Loans Impaired loans include non-accrual commercial real estate...

  • Page 53
    ..., 2009, includes $841.6 million of loans and leases. Loan Modifications TCF may modify certain loans to retain customers or to maximize collection of loan balances. TCF has maintained several programs designed to assist consumer real estate customers by extending payment dates or reducing customer...

  • Page 54
    ... equity securities. TCF Bank's ability to pay dividends or make other capital distributions to TCF is restricted by regulation and may require regulatory approval. Deposits Deposits totaled $11.6 billion at December 31, 2009, up $1.3 billion from December 31, 2008. Checking, savings and money market...

  • Page 55
    ...requirements. Collateral predominantly consists of residential and commercial real estate. Campus marketing agreements consist of fixed or minimum obligations for exclusive marketing and naming rights with eight campuses. TCF is obligated to make various annual payments for these rights in the form...

  • Page 56
    ... the year ended December 31, 2009 is as follows. (Dollars in thousands) Net income Add: Net loss attributable to the non-controlling interest Preferred stock dividends Net income available to common stockholders Treasury shares sold to TCF employee benefit plans Amortization of stock compensation...

  • Page 57
    ...service charges were $74.9 million, up 11% from the fourth quarter of 2008, primarily due to an increased number of checking accounts and related fee income. Card revenues totaled $26.8 million for the fourth quarter of 2009, up 6.2% over the same 2008 period. Leasing and equipment finance revenues...

  • Page 58
    ... to, requirements related to the Bank Secrecy Act and anti-money laundering compliance activity. Risks Relating to New Product Introduction TCF has recently introduced a new anchor retail deposit account product that replaces TCF Totally Free Checking, and that calls for a monthly maintenance fee on...

  • Page 59
    ... potential reductions in card revenues resulting from covered litigation or other litigation against Visa. Competitive Conditions; Supermarket Branching Risk Reduced demand for financial services and loan and lease products; adverse developments affecting TCF's supermarket banking relationships or...

  • Page 60
    ...-earning assets: Consumer loans (1) Commercial loans (1) Leasing and equipment finance (1) Securities available for sale (1) Investments Inventory finance Total Interest-bearing liabilities: Checking deposits (2) Savings deposits (2) Money market deposits (2) Certificates of deposit Short-term...

  • Page 61
    ... audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), TCF Financial Corporation's internal control over financial reporting as of December 31, 2009, based on criteria established in Internal Control - Integrated Framework issued by the Committee...

  • Page 62
    ... other Commercial real estate Commercial business Leasing and equipment finance Inventory finance Total loans and leases Allowance for loan and lease losses Net loans and leases Premises and equipment Goodwill Other assets Total assets Liabilities and Equity Deposits: Checking Savings Money market...

  • Page 63
    ... income: Fees and service charges Card revenue ATM revenue Subtotal Leasing and equipment finance Other Fees and other revenue Gains on securities, net Gains on sales of branches and real estate Visa share redemption Total non-interest income Non-interest expense: Compensation and employee benefits...

  • Page 64
    ... for employee tax withholding (51,275) - Amortization of stock compensation - - Exercise of stock options, 87,083 shares - - Stock compensation tax benefits - - Change in shares held in trust for deferred compensation plans, at cost - - Balance as of December 31, 2007 131,468,699 $ - Pension and...

  • Page 65
    ... on securities available for sale Purchases of securities available for sale Net decrease in federal funds sold Purchases of Federal Home Loan Bank stock Proceeds from redemptions of Federal Home Loan Bank stock Proceeds from sales of real estate owned Purchases of premises and equipment Proceeds...

  • Page 66
    ... the accounts of TCF Financial Corporation and its wholly owned subsidiaries. TCF Financial Corporation, a Delaware corporation, is a financial holding company engaged primarily in retail banking and wholesale banking through its primary subsidiary, TCF Bank. TCF Bank owns leasing and equipment...

  • Page 67
    ... as operating leases. Operating leases represent a rental agreement where ownership of the underlying equipment resides with TCF. Such leased equipment and related initial direct costs are included in other assets on the balance sheet and are depreciated on a straight-line basis over the term of...

  • Page 68
    ...on consumer real estate lines of credit are amortized to service fee income. Loans and leases, including loans or leases that are considered to be impaired, are reviewed regularly by management and are generally placed on non-accrual status when the collection of interest or principal is 90 days or...

  • Page 69
    ... fees and service charges and a related reserve for uncollectible deposit fees is maintained in other liabilities. Other deposit account losses are reported in other non-interest expense. Note 2. Cash and Due from Banks At December 31, 2009, TCF was required by Federal Reserve Board regulations...

  • Page 70
    ... are required investments related to TCF's borrowings from these banks. FHLBs obtain their funding primarily through issuance of consolidated obligations of the Federal Home Loan Bank system. The Due in one year or less Due in 1-5 years Due in 5-10 years Due after 10 years No stated maturity Total...

  • Page 71
    ... 31, 2008, TCF had no securities in an unrealized loss position within the available for sale portfolio. Note 5. Loans and Leases The following table sets forth information about loans and leases. (Dollars in thousands) At December 31, 2009 2008 Percentage Change Consumer real estate and other...

  • Page 72
    ... of management, the above mentioned loans to outside directors and their related interests and executive officers do not represent more than a normal risk of collection. Future minimum lease payments receivable for direct financing, sales-type leases and operating leases as of December 31, 2009 are...

  • Page 73
    ... December 31, 2009, the total minimum rental payments for operating leases were as follows. (In thousands) 2010 2011 2012 2013 2014 Thereafter Total $ 27,212 24,645 22,507 21,245 20,171 115,520 $231,300 Note 8. Goodwill and Other Intangible Assets Goodwill and intangible assets are summarized as...

  • Page 74
    ...2,596,283 $10,243,352 % of Total 21.5% 17.2 38.7 30.0 6.0 74.7 25.3 100.0% Rate at Year-End Amount Checking: Non-interest bearing Interest bearing Total checking Savings Money market Total checking, savings, and money market Certificates of deposit Total deposits -% $ 2,382,007 .35 2,018,283 .16...

  • Page 75
    ... and loan borrowings Total Year ended December 31, Average daily balance Federal funds purchased Securities sold under repurchase agreements Federal Home Loan Bank advances Line of credit U.S. Treasury, tax and loan borrowings Total Maximum month-end balance Federal funds purchased Securities sold...

  • Page 76
    ... agreements Subtotal Subordinated bank notes Subtotal Junior subordinated notes (trust preferred) Discounted lease rentals Subtotal Other borrowings Total long-term borrowings At December 31, 2009, TCF has pledged loans secured by residential real estate, commercial real estate loans and FHLB...

  • Page 77
    ... subject to certain limitations. For certain equipment leases, TCF sells its minimum lease rentals to other financial institutions at fixed rates on a non-recourse basis with its underlying equipment as collateral as a credit risk reduction tool. In the event of a default by customer on these leases...

  • Page 78
    ... operating losses Pension and postretirement benefits Other Valuation allowance Total deferred tax assets Deferred tax liabilities: Lease financing Loan fees and discounts Premises and equipment Prepaid expenses Investment in FHLB stock Investments in affordable housing Securities available for sale...

  • Page 79
    ... Bank may not declare or pay a dividend to TCF in excess of 100% of its net retained profits for the current year combined with its retained net profits for the preceding two calendar years, which was $158.3 million at December 31, 2009, without prior approval of the OCC. TCF Bank's ability to make...

  • Page 80
    ...enable TCF to attract and retain key personnel. At December 31, 2009, there were 5,047,452 shares reserved for issuance under the Program. At December 31, 2009, there were 158,611 shares of performance-based restricted stock that will vest only if certain return on equity goals or service conditions...

  • Page 81
    ... to the annual covered compensation limitation imposed by the Internal Revenue Service ("IRS"). TCF matches the contributions of all participants with TCF common stock at the rate of 50 cents per dollar for employees with one through four years of service, up to a maximum company contribution of...

  • Page 82
    ... them annually. TCF accounts for the Pension Plan in accordance with Financial Accounting Standard Codification (FASC) 715 "Compensation - Retirement Benefits". FASC 715 requires companies to reflect each defined benefit and other postretirement benefits plan's funded status on the company's balance...

  • Page 83
    ... long-term rate of return on plan assets and the rate of increase in future compensation used to determine the net benefit cost were as follows. Assumptions used to determine net benefit cost Discount rate Expected long-term rate of return on plan assets N.A. Not Applicable. Pension Plan Year Ended...

  • Page 84
    ... average long-term annual returns of 8.5%, net of administrative expenses, on plan assets over complete market cycles. A 1% difference in the expected return on plan assets would result in a $583 thousand change in net periodic pension expense. The discount rate used to determine TCF's pension and...

  • Page 85
    ... issued by TCF guaranteeing the performance of a customer to a third-party. These conditional commitments expire in various years through the year 2012. Collateral held primarily consists of commercial real estate mortgages. Since the conditions under which TCF is required to fund these commitments...

  • Page 86
    ... Market Prices(2) Company Determined Market Prices(3) Total at Fair Value (In thousands) Securities available for sale: Mortgage-backed securities: U.S. Government sponsored enterprises and federal agencies Other securities Assets held in trust for deferred compensation plans (4) Total assets...

  • Page 87
    ... market priced financial assets carried at fair value during the year ended December 31, 2009 was not significant. Effective January 1, 2009, TCF adopted Financial Accounting Standards Codification (FASC) 820-10-65, Transition and Open Effective Date Information, which requires TCF to apply...

  • Page 88
    ... Securities available for sale Loans: Consumer real estate and other Commercial real estate Commercial business Equipment finance loans Inventory finance loans Allowance for loan losses(1) Total financial instrument assets Financial instrument liabilities: Checking, savings and money market deposits...

  • Page 89
    2009 Form 10-K : 73 The carrying amounts of cash and due from banks and accrued interest payable and receivable approximate their fair values due to the short period of time until their expected realization. Securities available for sale and assets held in trust for deferred compensation plans are ...

  • Page 90
    ... TCF Financial Corporation ...025 - - Net income available to common stockholders 68,694 126,418 266,808 Earnings allocated to participating securities 215 488 4,672 Earnings ... the years ended December 31, 2009 and 2008, 6.5 million and 4.4 million shares were outstanding, respectively, related to...

  • Page 91
    ... includes branch banking and retail lending. Wholesale Banking includes commercial banking, leasing and equipment finance and inventory finance. Treasury Services includes the Company's investment and borrowing portfolios and management of capital, debt and market risks, including interest-rate and...

  • Page 92
    ... information of each of TCF's reportable segments, including a reconciliation of TCF's consolidated totals. (In thousands) Retail Banking Wholesale Banking Treasury Services Support Services Eliminations Consolidated At or For the Year Ended December 31, 2009: Revenues from external customers...

  • Page 93
    2009 Form 10-K : 77 Note 24. Parent Company Financial Information TCF Financial Corporation's (parent company only) condensed statements of financial condition as of December 31, 2009 and 2008, and the condensed statements of income and cash flows for the years ended December 31, 2009, 2008 and ...

  • Page 94
    ... preferred trust securities Sale of trust preferred securities Capital infusions to TCF National Bank Treasury shares sold to Employees Stock Purchase Plans Net (decrease) increase in short-term borrowings Stock compensation tax (expense) benefits Other, net Net cash used by financing activities Net...

  • Page 95
    ... and related notes. Selected Quarterly Financial Data (Unaudited) (Dollars in thousands, except per-share data) Selected Financial Condition Data: Loans and leases Securities available for sale Goodwill Total assets Total deposits Short-term borrowings Long-term borrowings Total equity Dec. 31, 2009...

  • Page 96
    ... Executive Officer), the Company's Chief Financial Officer (Principal Financial Officer) and its Controller and Assistant Treasurer (Principal Accounting Officer), of the effectiveness of the design and operation of the Company's disclosure controls and procedures pursuant to Exchange Act Rule...

  • Page 97
    2009 Form 10-K : 81 Report of Independent Registered Public Accounting Firm The Board of Directors and Stockholders TCF Financial Corporation: We have audited TCF Financial Corporation's internal control over financial reporting as of December 31, 2009, based on criteria established in Internal ...

  • Page 98
    ... principles Code of Ethics for Senior Financial Management TCF adopted a Code of Ethics for Senior Financial Management in March 2003. This Code of Ethics is available for review at the Company's website at www.tcfbank.com under the "Corporate Governance" section. Any changes to or waivers of...

  • Page 99
    ... on or about March 10, 2010 and is incorporated herein by reference. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Information regarding ownership of TCF's common stock by TCF's directors, executive officers, and certain other shareholders...

  • Page 100
    ... TCF and its subsidiaries, are filed as part of this report: Desc rip tio n Page Selected Financial Data Consolidated Statements of Financial Condition at December 31, 2009 and 2008 Consolidated Statements of Income for each of the years in the three-year period ended December 31, 2009 Consolidated...

  • Page 101
    ... duly authorized. TCF Financial Corporation Registrant By /s/ William A. Cooper William A. Cooper Chairman and Chief Executive Officer Dated: February 16, 2010 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of...

  • Page 102
    ... TCF Financial Corporation and the United States Department of the Treasury [incorporated by reference to Exhibit 10.1 to TCF Financial Corporation's Current Report on Form 8-K filed on November 14, 2008] Indenture dated August 19, 2008 between TCF Financial Corporation and Wilmington Trust Company...

  • Page 103
    ...Summary of Stock Award Program for Consumer Lending and Business Banker Divisions [incorporated by reference to Exhibit 10(b)-3 to TCF Financial Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 2005] Form of Year 2006 Executive Stock Grant Award Agreement dated January...

  • Page 104
    ...14 to TCF Financial Corporation's Current Report on Form 8-K filed January 23, 2009] Form of Year 2009 Executive Stock Award as executed by certain executives, effective January 20, 2009 [incorporated by reference to Exhibit 10(b)-15 to TCF Financial Corporation's Current Report on Form 8-K filed...

  • Page 105
    ... Current Report on Form 8-K filed January 27, 2005] Restated Trust Agreement as executed with First National Bank in Sioux Falls as trustee effective as of October 1, 2000 [incorporated by reference to Exhibit 10(d) of TCF Financial Corporation's Annual Report on Form 10-K for the fiscal year ended...

  • Page 106
    ...] Trust Agreement for TCF Financial Senior Officer Deferred Compensation Plan as executed with First National Bank in Sioux Falls as trustee effective as of October 1, 2000 [incorporated by reference to Exhibit 10(m) of TCF Financial Corporation's Annual Report on Form 10-K for the fiscal year ended...

  • Page 107
    ..., 2003] TCF Director Retirement Plan effective as of October 24, 1995 [incorporated by reference to Exhibit 10(y) to TCF Financial Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 1995] Supplemental Employee Retirement Plan for TCF Cash Balance Pension Plan, as amended...

  • Page 108
    ... Executive Vice President, TCF Financial Corporation Craig R. Dahl Senior Partner, Kaplan, Strangis and Kaplan, P.A. Barry N. Winslow 4 TCF Retail Bank President and Chief Operating Officer, TCF Financial Corporation Neil W. Brown TCF Commercial Banking Managing Director James J. Urbanek Vice...

  • Page 109
    ... Etten TCF Support Services Executive Vice President and Chief Financial Officer, TCF Financial Corporation Thomas F. Jasper Senior Vice President and General Counsel, TCF Financial Corporation Joseph T. Green Executive Vice President and Chief Information Officer, TCF Financial Corporation Earl...

  • Page 110
    ...fices Executive Offices TCF Financial Corporation 200 Lake Street East Mail Code EX0-03-A Wayzata, MN 55391-1693 (952) 745-2760 Minnesota/South Dakota Traditional Branches Minneapolis/St. Paul Area (45) Greater Minnesota (2) South Dakota (1) TCF Equipment Finance, Inc. Headquarters 11100 Wayzata...

  • Page 111
    ...Computershare Trust Company, N.A. offers the Computershare Investment Plan, a direct stock purchase and dividend reinvestment plan for TCF Financial Corporation common stock. This shareholder-paid program provides a low-cost alternative to traditional retail brokerage methods of purchasing, holding...

  • Page 112
    ... Investor/Analyst Contact Available Information Jason Korstange Senior Vice President Corporate Communications (952) 745-2755 Stacey Ronshaugen Assistant Vice President Investor Relations (952) 745-2762 Please visit our website at ir.tcfbank.com for free access to Company news releases, investor...

  • Page 113
    ..., customer service and new products. Properly applied technology increases revenue, reduces costs and enhances customer service. We centralize back office activities and decentralize the banking process. Conservative Accounting. TCF utilizes conservative accounting and financial reporting principles...

  • Page 114
    TCF Financial Corporation 2009 Annual Report TCF Financial Corporation 200 Lake Street East Wayzata, MN 55391-1693 www.tcfbank.com TCFIR9344