TCF Bank 2010 Annual Report Download - page 129

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Profit Centers TCF’s focused profit center structure creates
superior financial performance. Day-to-day operations are organized
by profit centers within business lines: Wholesale Banking (commercial
banking, leasing and equipment finance, and inventory finance),
Retail Banking (branch banking and retail lending), Treasury Services
and Support Services, each with profit center goals and objectives.
TCF emphasizes net income, return on average assets and earnings per
share growth at acceptable levels of risk. We offer products that are
profitable and contribute to these goals. Our profit center structure
creates a highly responsive and performance driven culture.
Convenience TCF emphasizes convenience in banking; we’re
open 12 hours a day, seven days a week, 364 days per year. TCF
banks a large and diverse customer base. We provide customers
innovative products through multiple banking channels, including
traditional, supermarket and campus branches, TCF Express Teller®
and other ATMs, debit cards, phone banking, Internet banking
and mobile banking.
Checking Accounts TCF focuses on growing and retaining its
large number of low-interest cost checking accounts by offering
convenient hours and delivery channels, and products with many
free features. TCF uses the checking account as the anchor account
to build additional customer relationships.
Deposits TCF earns a significant portion of its profits from the
deposit side of the bank. We accumulate a large number of low cost
accounts through convenient services and products targeted to a
broad range of customers. As a result of the profits we earn from
the deposit business, we can minimize credit risk on the asset side.
Secured and Diversified Lender TCF maintains a secured
loan and lease portfolio that is well-diversified by type (consumer,
commercial, specialty finance) and by geography. We further diversify
our asset portfolio by industry, product and collateral type to minimize
concentration risk. In addition, we require our loans and leases to
be supported by collateral to provide an alternate repayment source
beyond cash flow from the borrower, which helps mitigate losses.
We emphasize credit quality over asset growth as the costs of poor
credit quality far outweigh the benefits of unwise asset growth.
Conservative Underwriting TCF’s diversified asset portfolio
and our extensive credit review practices reduce our credit risks
while creating profitability and sustainable growth, even in the
most challenging economic environments. We lend and lease to
high-quality customers and invest only in programs that add
value to the organization and yield solid returns.
Interest-rate Risk TCF believes interest-rate risk should be
minimized. Interest-rate speculation does not generate consistent
profits and is high risk.
Capital and Liquidity TCF focuses on prudent capital and
liquidity management which strengthens our capital position,
increases our borrowing capacity, and reduces our costs and risks.
We are solidly capitalized and have access to ample liquidity to
conduct business. TCF’s financial strength makes us a safe and
sound financial institution.
Expansion TCF grows both through de novo expansion and
acquisition. We are growing by starting new businesses, opening
new branches and offering new products and services.
The Customer First TCF strives to place The Customer First. We
believe providing great service helps to retain existing customers,
attract new customers, create value for our stockholders, and build
pride in our employees. We also respect customers’ concerns about
privacy and know they place their trust in us. TCF is committed to
protecting the private information of our customers and retaining
that trust is our priority.
Stock Ownership TCF encourages stock ownership by our
officers, directors and employees. We have a mutuality of interest
with our stockholders, and our goal is to earn for them an above-
average return.
Technology TCF places a high priority on the development of
technology to enhance productivity, 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 that accurately and honestly
report our financial condition and results of operations. We believe
good accounting drives good business decision-making.
Open Employee Communication TCF encourages open employee
communication and promotes from within whenever possible. TCF
places the highest priority on honesty, integrity and ethical behavior.
Equal Treatment TCF does not discriminate against anyone
in employment or the extension of credit. As a result of TCF’s
community banking philosophy, we market our products and
services to everyone in the communities we serve.
Community Participation TCF believes in community
participation, both financially and through volunteerism.
We feel a responsibility to help those less fortunate.
Corporate Philosophy
2010 Annual Report