TCF Bank 2010 Annual Report Download - page 13

We continue to be innovative and look for opportunities to create
and deliver value to our stockholders.
• Potential reductions in our borrowing
capacity because of restrictions put on
the Federal Home Loan Banks or the
Federal Reserve Discount Window could
reduce our liquidity and inhibit growth
or force higher deposit costs. Growing
core deposits reduces this risk.
• Changes in customer behavior from
the slowing economy and advances in
technology could further impact fee
revenue. In addition, further changes
to our product and service offerings in
response to legislative changes could
impact customer banking preferences
in the future.
• Growth expectations of our new
inventory finance business may not be
achieved. This new line of business has
been very successful for TCF, however,
the ability to retain existing business
relationships and attract new custom-
ers has become more challenging as
we find ourselves repeatedly compet-
ing with the nation’s largest inventory
finance provider.
• A further deterioration of the public’s
perception of banks. When public
perception sours as a result of bad
behavior from some of the largest
players, smaller community banks
like TCF suffer the most. Therefore, it
is important we continue to stick to
our knitting and provide products
and services that appeal to all people.
TCF has prudently managed these types
of risks in the past and we believe we
are adequately prepared to manage
them in the future.
In Closing
TCF remains a safe and sound financial
institution. Our capital position is
strong and we have ample liquidity to
conduct business. I am proud we have
held tight to our conservative banking
principles and, as a result, TCF has
remained profitable for an astounding
63 consecutive quarters. We continue
to be innovative and look for opportuni-
ties to create and deliver value to
our stockholders despite the recession-
ary environment and government’s
overreach into the banking industry.
We have also demonstrated an ability
to meet our regulatory challenges
head-on. This proactive approach has
proven to be the right thing to do for
our customers and stockholders.
We continue to have a mutuality of
interest with our stockholders. Our
senior management and board of
directors own over 6.2 million shares,
or 4 percent of TCF stock. Eighty-two
percent of our match-eligible employees
participate in TCF’s Employees Stock
Purchase Plan, which at year-end held
over 7.8 million shares.
I would like to take this opportunity to
thank the board of directors for their
continued dedication, wise counsel
and support of TCF. It was very much
appreciated in 2010. During the past
year, we welcomed Karen Grandstrand,
Ray Barton and Rick Zona to TCF board
membership. Karen has a wealth of
knowledge and experience in law and
in the banking industry; Ray brings an
entrepreneurial background and insight
into the retail franchise business; and
Rick provides us with his knowledge
and experience in the financial services
industry. We welcome their insights
to assist TCF in our continued growth
and success.
I would also like to give a special
thanks to our employees for their hard
work and efforts during another very
challenging year. Their exceptional
abilities, commitment and energy
make everything happen at TCF.
I am proud of the TCF Team and our
accomplishments.
Thank you for your continued support
and investment in TCF.
William A. Cooper
Chairman and Chief Executive Officer
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2010 Annual Report