TCF Bank 2010 Annual Report Download - page 24

• 8 • TCF Financial Corporation and Subsidiaries
State Taxation TCF and/or its subsidiaries currently 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 methods
of filing, and the methods for calculating taxable and
apportionable income, vary depending upon the laws of
the taxing jurisdiction. See “Risk Factors”.
See “Item 7. Management’s Discussion and Analysis of
Financial Condition and Results of Operations — Consolidated
Income Statement Analysis — Income Taxes” and Notes 1
and 12 of Notes to Consolidated Financial Statements for
additional information regarding TCF’s income taxes.
Available Information
TCF’s website, ir.tcfbank.com, includes free access to
Company news releases, investor presentations, conference
calls to discuss published financial results, TCF’s Annual
Report and periodic filings required by the Securities and
Exchange Commission (“SEC”), including annual reports on
Form 10-K, quarterly reports on Form 10-Q, current reports
on Form 8-K and amendments to those reports as soon as
reasonably practicable after electronic filing or furnishing
of such material to the SEC.
TCF’s Compensation/Nominating/Corporate Governance
Committee and Audit Committee charters, Corporate
Governance Guidelines, Codes of Ethics and changes to
Codes of Ethics and information on all TCF’s securities are
also available on this website. Stockholders may request
these documents in print free of charge by contacting the
Corporate Secretary at TCF Financial Corporation, 200 Lake
Street East, Mail Code EX0-03-A, Wayzata, MN 55391-1693.
Item 1A. Risk Factors
Enterprise Risk Management
In the normal course of business, TCF is exposed to various
risks. Management balances the Company’s strategic goals,
including revenue and profitability objectives, with the
associated risks.
In defining the Company’s risk profile, management
organizes risks into three main categories: Credit Risk,
Market Risk (which includes interest-rate risk, liquidity
risk, foreign currency risk and price risk) and Operational
Risk (which includes transaction risk and compliance risk).
Policies, systems and procedures have been adopted which
are intended to identify, assess, control, monitor, and
manage risk in each of these areas.
TCF appointed a dedicated Chief Risk Officer (“CRO”)
in 2010 to further enhance its enterprise risk management
governance process. The CRO is a senior executive, report-
ing directly to both the Company’s Chief Executive Officer
and Audit Committee Chairman. The CRO has primary
responsibility for enterprise wide risk management and
Integrated Risk Control Services (formerly referred to as
Internal Audit) department across all lines of business at
TCF. Additionally, the heads of the various business lines
within the company are responsible for identifying the
most significant risks in their respective areas. Risk officers
are assigned to key business units. The risk officers, while
reporting directly to their respective line of business,
facilitate implementation of the enterprise risk manage-
ment and governance process. Each business line within
the Company maintains policies, systems and procedures
which are intended to identify, assess, control, monitor,
and manage risk within each area. Management continually
reviews the adequacy and effectiveness of these policies,
systems and procedures. An Enterprise Risk Management
Committee consisting of senior executives within the
Company supports the CRO.
As an integral part of the risk management process,
management has established various committees consisting
of senior executives and others within the Company. The
purpose of these committees is to closely monitor risks
and ensure that adequate risk management practices exist
within their respective areas of authority. Some of the
principal committees include the Credit Policy Committee,
Concentration Credit Risk Management Committee, Asset/
Liability Management Committee (“ALCO”), Investment
Committee, Capital Planning Committee and various
financial reporting and compliance-related committees.
Overlapping membership of these committees helps provide
a unified view of risk on an enterprise-wide basis.
The Board of Directors, through its Audit Committee,
has overall responsibility for oversight of the Company’s
enterprise risk management governance process.
Credit Risk Management Credit risk is defined as the
risk to earnings or capital if an obligor fails to meet the
terms of any contract with the Company or otherwise fails
to perform as agreed. This includes failure of customers and
counterparties to meet their contractual obligations, and
contingent exposures from unfunded loan commitments
and letters of credit. Credit risk also includes failure of a